Holden Colorado

TRUCKS – formerly called utes – are highly profitable, big-volume models that have become mandatory earners for major car-makers.

Unlike passenger cars and most SUVs, trucks deliver profit right from the point of manufacture through to the dealer and then the accessory segments.

Consider that over the past 20 years, the humble truck has barely altered from its ladder-frame chassis, four-cylinder turbo-diesel engines, wishbone front suspension, leaf-sprung rear with a live axle and rear drum brakes.

Pricing and customer value – Click to enlarge

Ford’s F-Series truck is the brand’s most profitable model, each unit contributing more than $US10,000 ($A12,965) – though some say $US13,300 ($A17,243) – in profit in North America. Ford sold 780,354 F-Series trucks in 2015, a rate of 4.55 trucks every minute of dealership opening hours.

GM Holden sees the potential but admits it may not have got it right with the second-generation Colorado, introduced in 2012.

In terms of on-road ride and handling, noise suppression and paint and panel quality, it didn’t approach the standards of Toyota HiLux, Ford Ranger or Mitsubishi Triton – tellingly, all being made in Thailand where the Colorado also comes from.

Holden sold 18,520 Colorados in 2015, four-fifths of them being 4WD variants, with the Toyota HiLux finishing the year with a market leading 35,161.

The 4WD Colorado versions are doing even better this year-to-date July with 9854 sales against their 2WD counterparts which sold 1168 units.

Colorado is Holden’s second-biggest seller, lagging Commodore by only 27 per cent.

But from September 1, there is potential for Holden to carve out a bigger slice of the truck pie.

The new Colorado – actually a mid-life upgrade – is significantly better in terms of quality, ride, handling and quietness. Holden believes it is now on par in these departments with the Ford Ranger, Toyota HiLux and Mazda BT-50 and ahead of the Mitsubishi Triton.

Target Market – Click to enlarge

While the Volkswagen Amarok features the plushest ride, it is comparatively expensive.

It is quite an achievement to make a large step up in driveability without making wholesale changes to the outgoing version. For example, the new Colorado carries over drivetrain and basic suspension (but with considerable tuning), chassis and body panels behind the bonnet.

No petrol engine will be available as Holden stays with a modified VM Motori turbo-diesel engine block and builds it to specification in Thailand. This 2.8-litre diesel engine will this month be offered to the US, joining the standard-issue V6 petrol.

Australia was responsible for most of the suspension and steering tuning – including adapting electric-assist steering in line with the Chevrolet Colorado – while Brazil, which originated the Colorado, contributed panel and cabin design.

Holden lead development engineer for the Colorado Amelinda Watt called the new model’s chassis tuning “unique to Australia”.

GM International vice president of quality Ty McGinnis, who works out of Singapore and overseas production in Thailand, said that “quality levels have improved by 20 per cent, compared with the previous model”, pointing out that paint finish and panel fit were two areas that have seen major improvements while admitting the outgoing model had “some faults”.

Holden now positions the Colorado among the top-three pick-up truck volume sellers and adds that improved safety features with a sophisticated and comprehensive infotainment suite including Apple Carplay will particularly win over buyers.

Competition – Click to enlarge

Holden says the significance of a contemporary communications and audio system cannot be underestimated, either for family-related duties or for hands-free business dealings for blue-collar owners.

One of its biggest sellers will be the LTZ variant, which is one grade down from the more enhanced flagship Z71, and will compete with the Toyota Hilux SR5, Ford Ranger XLT, Nissan Navara ST-X, Mitsubishi Triton Exceed and Volkswagen Amarok Highline.

Holden will not say how many sales will come from the new Colorado, but Holden director of sales Peter Keley said that “we are very confident sales will increase”.

He said Holden will attract buyers on price – starting at $29,490 plus on-road costs for a cab-chassis variant – and on ownership costs that include seven-year capped-price servicing at $349 a year for the first four years and $409 a year for the remaining three years.

Like competing truck-makers, new buyers for the 4WD dual-cab variants – which will become the most popular – are not primarily seeking a workhorse, instead looking for a lifestyle type vehicle.

Holden predicts the majority of buyers for these variants will be male, married, middle-aged and 42 per cent will have a tertiary education.

By Neil Dowling