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Wednesday, May 9, 2012

CHEVROLET SS WILL COST MORE THAN IT'S WORTH

A Holden-sourced hotrod for the U.S. has all but been confirmed by GM after an OnStar slipup and the resulting media storm, but official details are still just out of reach. Even without that information, there's a reasonable argument to be made that the rear-drive Chevrolet SS will be less than prolific.

By Luke Vandezande, Autoguide.com - Aussie dollars are thriving in the world market right now -- a huge change from just a few years ago where it was a nothing-currency valued well-under the U.S. dollar. Why should you care, you may ask? It's really very simple.

Australia's strong exports are sending its dollar through the roof, which means anything exported from the country will also be more expensive. A certain Chevrolet SS that perked so many ears in recent weeks falls smack dab in the middle of that category. Simply put, under the current economic climate, you probably can't afford to buy one.

Even the folks who can might choose not to. The truth is, unless you have some sort of misplaced loyalty to either GM or Holden, there will probably be a competing car with better per-dollar value.

With details still totally in the dark, folks like us start dreaming and that's exactly what automakers count on. Media members create a buzz and that helps sales, but don't forget that the Chevrolet SS will likely be a reiteration of the previous U.S. Holden Commodore (the Pontiac G8). While it had impressive specifications and a big V8, lackluster sales and an almost automatic-exclusive drivetrain spelled the G8's doom.

At its peak, the Aussie dollar sat in February at 1.08 to the Greenback. It's true that the disparity between our currencies is shrinking, but the fact remains that Australia's success is due largely to Chinese demand for its goods, something that is likely to continue for the immediate future.

Given that, it seems reasonable to assert that a Caprice, G8 successor, Chevrolet SS, or whatever the company labels it will be priced as a niche car. People with moeny to burn and a keen sense of individuality may find merit in something like that, but it isn't a recipe for mass appeal.

Similarly, it's doubtful that the cars will be easy to market in fleets, that is unless GM is willing to stretch the already razor-thin margins associated with that sort of deal.

The end result? Don't hold your breath for a hot Holden in North America at a resonable price -- you'll turn blue and keel over first.

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