HSV eyes hot Opels

Holden’s decision to market high-performance Opels under its own name presents an opportunity rather than a setback for Holden Special Vehicles (HSV), insists chairman Ryan Walkinshaw.

HSV chief Tim Jackson told motoring.com.au the April announcement that Holden would sell OPC (Opel Performance Centre) versions of the Astra and Insignia under the VXR badge from 2015 would make life more difficult for Holden's performance partner and Walkinshaw admitted the decision came as a mild surprise.

Holden also announced the milder Astra GTC three-door and Cascada hard-top convertible would be coming to Australia next year.

However, Walkinshaw insists HSV could still add further performance to the Holden's VXR-badged OPC vehicles as part of an expansion of its presence across the Holden line-up.

“At the end of the day we’re their performance arm and if they want to make performance products under those cars then we know we can certainly do that or have a look at it,” Walkinshaw told motoring.com.au.

“We have a very good group of designers and engineers at HSV and there is no reason why -- if the business case stacks up -- we wouldn’t look at some of those products and try and improve them.

“We have been able to do it with everything else that has been thrown at us, so why wouldn’t we do it with the OPC stuff?”

In essence, OPC does for Opel what HSV does for Holden; takes stock models and adds performance by boosting engine output and modifying the chassis. The Insignia, Astra and Corsa OPC were all sold here briefly in 2013 as part of Opel’s short-lived foray into Australia under its own name.

That means Walkinshaw is proposing to further hot-up hot cars in the same way another member of the Walkinshaw group of companies, Walkinshaw Performance, further boosts HSV’s line-up of models based on the Holden VF Commodore V8.

The issue with that is HSV’s traditional profitability model has relied upon taking a relatively low-cost base car and building it up significantly in performance and price.

Walkinshaw acknowledges the opportunity to do either of those things with OPC models would be more limited, but is undeterred.

“There is also opportunity for us to grow away from just one model,” he argued. “That means we might be making slightly smaller margins on each model but we are working across a broader spectrum. Potentially it could be a good business case.

“These are things we are talking about with Holden and it’s got to stack up for both parties for us to go down that route.”

Intriguingly, Walkinshaw confirmed there were still discussions about a higher-performance version of the locally-built Cruze small car, even though its future seems limited, the OPC models will cut across it and the plan for its future as an import unclear.

“We are still looking to see what potential opportunities there are there,” Walkinshaw said. “Again, it’s got to stack up otherwise neither party will do it.”

Walkinshaw said the decision, announced by new MD Gerry Dorizas and his boss Stefan Jacoby, to market Opel OPC models in Australia under its own name made sense for Holden.

“We weren’t informed of exactly what they were going to be talking about but we knew if they were going to be doing it they would be taking those products, so we were prepared for it,” he said.

“We know Gerry is very focussed on delivering good new products to Holden customers and into the Australian market and the likely company they would bring some of that product from would be Opel. It’s in the same group so it makes sense they would go down that route.”

Walkinshaw acknowledged the OPC decision is symbolic of the way the business relationship between Holden and the Walkinshaw group of companies, which runs HSV under licence, will inevitably evolve over coming years.

The first important milestone is the upcoming renewal of the licence, the second in 2017 when Holden is due to cease local manufacturing of the Commodore and Cruze.

“We anticipate our relationship with Holden will continue,” he said. “In what way it does will probably be different to what it is now because of the very nature of the changes in the industry we are in.

“But we know we can add value to Holden and that is what we want to focus on.”

That means HSV will be modifying imported rather than locally built vehicles at its Clayton HQ, unless it chooses to establish facilities at production sources off-shore.

For instance the much mooted replacement for the Commodore-based Chevrolet SS is expected to be built in the USA and exported back to Australia. That opens up the possibility of Walkinshaw creating a Chevrolet Special Vehicles division, as reported previously by motoring.com.au.

Walkinshaw would offer only a curt “no comment” when asked about the progress of ‘CSV’.