Holden does well with compact Cruze

“Our no-excuses car” is the revealing phrase Holden big boss Mark Reuss uses to describe the compact Cruze sedan.

It’s all about viability. In the current market small cars are rising in popularity and big ones - ahem, that’s you, Commodore - are falling.

So Cruze is a good second string, and one that potentially kept Holden sweet with General Motors when it had to determine, come the Chapter 11 bankruptcy, which brands would stay and which would go.

Mr Reuss says Holden’s sound financial position - it’s not burdened by huge debt - was a big plus to Detroit.

Holden’s determination to design and, from late next year, build a Cruze hatch alongside the Commodore in Adelaide also counted in its favour.

GM has approved a $A450 million investment in this car. The project is also getting a $A149 million subsidy from the Green Car Innovation Fund, a federal initiative to keep carmakers in Australia, and $A30 million from the South Australian government to fund a second manufacturing line.

The Cruze sedan is hardly set to have an easy run, mind. Holden hasn’t always done small-medium stuff well, and the Cruze faces 24 competitors beyond the sales king, the Toyota Corolla.

Cruze debuts GM’s smart Global Delta architecture and is the first collaborative project with GM divisions worldwide.

With engineering equally shared by Opel and Holden, this version is a “Euro-stralian” effort that just happens to be made for now in South Korea.

It’s also the first truly new GM car built by GM-DAT (formerly Daewoo), and that shows. It might still be a low-cost import, but the interior especially isn’t let down by a cheap feel.

Improvement over the outgoing Viva is even more apparent where it was really required - on the road.

Driven on Mornington Peninsula roads in Victoria, every variant demonstrated nimble reflexes, good steering and a composed ride.

When ducking and diving down the sinuous run leaving Arthur’s Seat, the diesel manual I was driving stayed true and eager.

There was a lot of tyre squeal, yes, but no sense of danger. In a Viva, I would have been glad to have made it in one piece. In the Cruze, I hankered for another go. It’s truly that much better.

The Cruze comes with a 1.8-litre petrol (ex-Astra) and a 2.0-litre turbo-diesel (from the Captiva). Both are available with either a five-speed auto or class-rare six-speed auto.

Notwithstanding the unfair penalties imposed on diesel cars here, this is the engine I’d take.

The oiler surprises by giving more power than the petrol. And it’s more refined.

Hooked up to the specially-strengthened auto, it’s a dream. Cruising at 100kmh while pulling barely 1200rpm in virtual silence is a great way to travel.

The petrol is one of GM’s oldest, and despite much updating is not great, lacking low-end verve. An abrupt clutch doesn’t help. Talk is that Opel’s new 104kW/200Nm 1.4-litre turbo will bump it within the year.

A discussion point at the launch was the lack of a driver’s footrest. Apparently it was omitted to improve crash safety and help the Cruze achieve the maximum five-star rating for independent NCAP testing.

Cabin dimensions are class competitive and the specifications are good.

The entry-level CD comes with air-conditioning, power windows, cruise control, MP3 audio input, trip computer, six airbags and electronic stability control.

The petrol-only CDX adds leather trim, heated front seats, fog lights and 17-inch alloys.

All in all, it’s a lot of kit considering Holden has also adopted a pricing strategy that undercuts competitors by between $1010 (Kia Cerato) and $8000 (Toyota Corolla GLX).

Holden New Zealand boss Simon Carr won’t reveal his sales target, but pointed out the Viva achieved a measly 4% penetration.

“We’re looking at much higher than that.”

The Cruze was a priority push.

“Small cars have very broad market appeal and sell to a wide range of customers.” he said.