Earlier this week we reported that GM's Australian performance arm, Holden Special Vehicles, had capped production of its Corvette LS7-powered HSV W427 super-saloon at just 200 units. Now, the performance division is pondering a new halo car that would be price below the limited-edition W427 but that would remain a permanent fixture in its lineup.

The interest in the 505hp (375kW) HSV W427, which is based on the Holden Commodore, has inspired the company to branch out to expand its range. The W427 is currently selling for around AUD$150,000 ($102,000) in Australia, however HSV hopes to build a new model that would compete with European sports cars in the AUD$100,000 ($70,000) range once the production run of the W427 is completed.

Aside from a new halo model, the Australian-based performance company is also looking to include a number of less expensive, smaller cars in its lineup to give the brand a mass appeal, reports Drive.

Part of this expansion could also include producing a performance oriented variant of the upcoming Chevrolet Volt, and according to HSV's managing director, Phil Harding, the brand will also petition GM to import performance-focused versions of the Opel Corsa and Insignia models.

The Chevrolet Volt, meanwhile, has already been confirmed for an Australian release around 2012, making the possibility of a performance version not completely unfathomable. However, if the economic climate continues to worsen, the business case for bringing expensive, performance-oriented variants of GM cars into the Australian market may not fly.

Other changes at HSV include a renewed interest in alternative fuels, such as LPG and diesel. While traditionally HSV has been associated with big petrol V8 engines, the company is hoping to expand this brand image to appeal to a wider range of performance enthusiasts, who may not want a large performance sedan.