Two great names of Australian motor racing come together, with Allan Moffat's son James to race for Dick Johnson and as teammate to his son Steven, while Australia is closer to having two F1 drivers
Champion Courtney's old seat goes to another legend's son
It's finally official – two of the great names of Australian touring car g racing, and Ford's motorsport history in this country, have united.
ames
James Moffat, 26, son of the legendary Allan, has been confirmed as a driver in the V8 Supercar Championship this year with equally famous Dick Johnson's Jim Beam Racing.
Moffat Junior replaces reigning V8 Super car games champion James Courtney, who promptly switched to the Toll Holden Racing Team within days of winning the title last December.
It is a complete second-generation driver line-up, with newcomer Moffat joining Johnson's son Steven in the team.
Moffat has arrived in the V8 Supercar "main game via the Fujitsu development series, in which he was a frontrunner. But he's warned not to expect him to repeat Courtney's success in a hurry.
However, Dick Johnson says the new Moffat is in the right place, because "we know how to nurture young drivers".
"I've watched James closely over the last few years and I've been really impressed with how he's developed," Johnson said.
"Not only does he have talent, he's Ford through and through -- which is really important to our fans."
Moffat said: "Obviously I've got some big shoes to fill and I need to be realistic about what I can achieve in my rookie year.
"However, I've got a great car and team to work with, so I'm looking forward to the challenge and can't wait to get started.
"Dick Johnson Racing is arguably the most iconic and one of the most successful teams in the country, so it's a great honour to drive for them.
"Working with Dick and Steven is going to be incredible and I can't wait to make the most of the experience."
Moffat will have his first public run with the team at the V8 Supercar pre-season test at Sydney's Eastern Creek Raceway tomorrow week (Saturday, January 29). The opening round of V8 Supercar Championship is in Abu Dhabi on February 11-12.
Jim Beam Racing general manager Glenn Turnor said that the Johnson and Moffat names were "iconic" in Australian motorsport.
"Dick and Allan were great competitors. To have their sons driving together for Australia's longest-established racing team will be something really special for fans," Turnor said.
"With Steven by his side and Dick as his mentor we are confident that James will continue to grow as a driver. This is the start of an exciting new chapter for Jim Beam Racing."
Meanwhile, Ford Performance Racing has formally announced Will Davison's return to the Blue Oval fold after two years at HRT – the second of them unhappy and unsuccessful.
While Davison will now be Mark Winterbottom's teammate at FPR, he previously sprung to prominence – and scored his first V8 Supercar victory – with the Johnson team in the seat that Courtney then took over.
A stream of V8 Supercar announcements is anticipated in the week leading into the pre-season test – although it's unlikely there will be an official release about teams having been told they will get $170,000 less per car this year in distributions from V8 Supercars Australia.
Last year the payment was about $850,000 per car.
Meanwhile, 2005 V8 Supercar champion and Paul Morris Motorsport/Supercheap Auto veteran Russell Ingall has declared this a "make or break" season for him. Ingall said he wanted to continue racing next year but it would depend on his performance this season.
"My game plan is to carry on through until the end of 2012 but I'm under no illusion that I have to perform and earn my seat."
Ingall's new teammate is Steve Owen, a development series champion and accomplished Triple Eight Race Engineering/Team Vodafone endurance race co-driver.
The Morris Motorsport cars are built by Triple Eight and Ingall said Owen's experience with that outfit would be an important benefit.
Ricciardo set for F1 start within a year
Another strong pointer this week that Australia might soon have two drivers on the Formula One grid.
Red Bull's motor racing supremo, Austrian Dr Helmut Marko, wants 21-year-old West Australian Daniel Ricciardo racing in F1 by next year "at the latest" -- most probably with Red Bull's second team, Toro Rosso.
Unless Mark Webber retires when his contract with world champion team Red Bull Racing ends this year that would mean two Aussies in the field.
Ricciardo will be driving in Friday practice sessions at grands prix this season and Dr Marko hinted that he could race for Toro Rosso at some point this year if either of its two contracted drivers, Sebastien Buemi of Switzerland and Jamie Alguersuari of Spain, don't perform well enough.
In the meantime Ricciardo will do a second season in the World Series by Renault for 3.5-litre Renault-engined open-wheelers. Ricciardo came within two points of winning the World Series title last year, pipped at the final wet race by Russian Mikhail Aleshin.
Instead of continuing with French team Tech 1 this season, Red Bull has switched Ricciardo to Czech team ISR, which won several races last season.
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at the carsales mobile site
Thứ Năm, 22 tháng 3, 2012
Minister announces new assistance for auto industry
Federal Government details its $3.4 billion 'New Car Plan for a Greener Future' to bolster the sustainability of local manufacturing
The Federal Government has announced its Automotive Transformation Scheme, aimed at promoting the next generation of automotive technologies but also as a means of ensuring Australian manufacturers get a leg up in the global marketplace.
The $3.4 billion scheme is the centrepiece of the Australian Government's A New Car Plan for a Greener Future, one that Innovation Minister Senator Kim Carr said will equip one of Australia's most important industries to compete for decades to come.
"The auto industry provides high-wage, high-skill jobs to almost 60,000 Australians. It is a critical part of our broad-based national economy," Senator Carr said.
Throughout the GFC, the Australian industry outperformed competitors across the OECD – sustaining vehicle production worth $5.7 billion in 2009, Senator Carr explained. Today, Australia is one of a small handful of nations with the full capabilities to take a car from drawing-board to show-room floor.
"Now is the time to capitalise on those capabilities," he said. "The Automotive Transformation Scheme will help vehicle and component makers get cleaner and greener products to market.
"Innovation is our great competitive edge – and with the right support, our vehicle and component makers can be world leaders."
Assistance is capped at $1.5 billion for Stage One (2011 to 2015) and $1 billion for Stage Two (2016 to 2020), complemented thereafter by an estimated $847 million in uncapped assistance for the production of vehicles from 2011 to 2017.
Carr said the scheme is governed by rigorous conditions and reporting requirements to ensure taxpayers receive value for money. Participants need to demonstrate their commitment to sustainable business operations, building workforce skills and improving environmental outcomes.
For more information on the Automotive Transportation Scheme, visit www.innovation.gov.au
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at the carsales mobile site
The Federal Government has announced its Automotive Transformation Scheme, aimed at promoting the next generation of automotive technologies but also as a means of ensuring Australian manufacturers get a leg up in the global marketplace.
The $3.4 billion scheme is the centrepiece of the Australian Government's A New Car Plan for a Greener Future, one that Innovation Minister Senator Kim Carr said will equip one of Australia's most important industries to compete for decades to come.
"The auto industry provides high-wage, high-skill jobs to almost 60,000 Australians. It is a critical part of our broad-based national economy," Senator Carr said.
Throughout the GFC, the Australian industry outperformed competitors across the OECD – sustaining vehicle production worth $5.7 billion in 2009, Senator Carr explained. Today, Australia is one of a small handful of nations with the full capabilities to take a car from drawing-board to show-room floor.
"Now is the time to capitalise on those capabilities," he said. "The Automotive Transformation Scheme will help vehicle and component makers get cleaner and greener products to market.
"Innovation is our great competitive edge – and with the right support, our vehicle and component makers can be world leaders."
Assistance is capped at $1.5 billion for Stage One (2011 to 2015) and $1 billion for Stage Two (2016 to 2020), complemented thereafter by an estimated $847 million in uncapped assistance for the production of vehicles from 2011 to 2017.
Carr said the scheme is governed by rigorous conditions and reporting requirements to ensure taxpayers receive value for money. Participants need to demonstrate their commitment to sustainable business operations, building workforce skills and improving environmental outcomes.
For more information on the Automotive Transportation Scheme, visit www.innovation.gov.au
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at the carsales mobile site
CN Confidential: snakes on a car
Snakes see orange over AMG, Holden dealers spill the beans on an Opel-coloured future and the TAC takes its propoganda to tacky new heights in rural Victoria...
Whether it's from the www, the latest motor show or the back doors of a carmaker near you, Carsales Network Confidential features the good oil other sources either won't publish, don't care about or don't know. Heard an automotive rumour or new model tip? Then let us know - editor@carpoint.com.au
Serpent seduced by 'Jaffa'
It's not every day that you get to witness a snake and a bright orange C 63 Mercedes simultaneously in the wilds of Melbourne.
The two came together at the Midsumma Festival, a lifestyle event held in Birrarung Marr on the Yarra River to celebrate queer culture. Mercedes-Benz had on display 'Jaffa', the orange C 63 Mercedes AMG that was originally unveiled at the Australian International Motor Show in Sydney three months back.
Apparently one of the visitors to the Festival brought along a pet snake, which was attracted to the high-performance AMG model. The owner of the snake explained to David McCarthy, Senior Manager Corporate Communications for the prestige importer, that snakes can't see all colours, but orange is one they can see.
McCarthy tells us that a lot of human visitors to the festival objects were drawn to both the reptile and the car -- as the pics show. Benz was there supporting Sircuit Bar in an official sponsorship agreement and McCarthy estimates that "there were at least a thousand people" who checked out the C 63 during the day he was there.
"The sales people ran out of business cards," he told the Carsales Network. The arrival of the snake led to the attendees twittering away to their hearts' delight. McCarthy believes it was a remarkable turn of events that helped promote the brand strongly on the day.
"It was just extraordinary," he said.
In McCarthy's view, car companies are missing out on sales because they don't tailor their marketing to address interest in the automotive industry from the gay and lesbian community.
"There's an assumption," he said, "that gay people are not interested in cars..."
The lustre of Opel
Since the announcement that German GM brand Opel would launch in Australia, there's been plenty of discussion -- but not among Holden dealers and their employees it seems. The word is that Holden has clamped down on its staff discussing the subject of Opel with the media.
That hasn't stopped the media drawing their own conclusions independently of course. There are plenty of opinions among the country's motoring press, so let's offer a few examples to illustrate how Opel's introduction here might pan out.
The first is Volkswagen, which Opel aims to rival with a product range upmarket of Holden's Korean-built imported models. VW has been marketing its range aggressively and is the tenth most popular brand in Australia. It's about 2500 vehicles away from moving up into eighth place -- and with the Amarok joining the range this year (in fact the local launch is next month), Volkswagen's almost a certainty to overtake a couple of Japanese importers.
So if Opel markets itself along the same lines, can it be similarly successful? Some in the media don't think so. It takes a long time to establish a brand and Volkswagen's 'meteoric' rise is one of those overnight success stories 20 years in the making. The importer relaunched its passenger cars in the early 1990s after several years of selling just its commercial vehicle range here. With the rise of the Deutschmark, the volume-selling brand could no longer compete with upcoming Japanese brands throughout the 1980s.
Volkswagen's example could give hope to Opel and its local staff, but it will take Opel a number of years to establish itself here and it won't be able to draw on its long-standing connection with Holden, for obvious reasons.
Renault is a contrary example of just how hard it can be to establish even a well-known name in the country -- and Opel is not 'well-known' other than within the circles of very well informed punters.
With the imminent reintroduction of the Saab brand to Australia, the Swedes are hoping that they can revitalise the brand name with new product, including the company's first SUV, the 9-4X. Opel will likely watch Saab's progress very attentively.
But you know the brand that is possibly the best pointer for whether Opel will succeed? Isuzu Ute...
The manufacturer of the D-MAX and its local import arm arrived here two years ago, during the depths of the GFC, with a fairly conservative sales forecast and nothing in the way of new product. Yet the company has seen slow but steady growth in sales since its local launch. The importer is basically marketing a vehicle that shares its looks and mechanicals with Holden's original RA model Rodeo and most of the underpinnings are found in Holden's Colorado also -- the two vehicles are even built in Thailand by the same company. Isuzu Ute is selling the D-MAX in numbers above the original sales forecast and is proving that a former supplier to Holden can do well on its lonesome.
Perhaps Opel could take a lead from the commercial vehicle distributor.
Despite Holden's directive to staff not to discuss the matter, someone who works in sales at a Holden dealership knows someone else working for the Carsales Network and did agree to provide his anonymous opinion as to how the local launch of the Opel brand might affect Holden in Australia:
Opel cars coming here may not impact too much on sales we think, as the Opel brand will target a more luxury premium market I would say. Holden in Australia targets mainstream buyers... although those buyers want quality vehicles and are also price-conscious and focused.
On hearing Opel was coming I initially thought [there would be] perhaps more opportunities to sell if there were to be joint franchises possible. Colleagues have similar thoughts.
Having stopped the Opel Astra/Vectra [we haven't] really noticed a drop in sales as such -- as they have been replaced by the very popular Korean-built Cruze, which is still selling strongly. Also the Barina and the Captiva are also proving very popular.
Repeat business [from Astra/Vectra owners] is hard to define definitely, but we are seeing owners who have a Barina still trading into the new Barina -- and similarly [there are] the Astra owners trading into a new Cruze.
Not sure that the introduction of Opel will impact greatly with repeat business as we think that price-focused buyers will see the benefits of the Holden brand when comparing to the Opel. Holden's strong branding in Australia will hold it in good stead regardless of the Opel launch.
And when you really think about it they are both GM brands. Upside could be the opportunity to consolidate GM branding with perhaps joint franchises.
Confused signals sent by road safety stunt?
The township of Speed, in Victoria's Mallee region is a willing partner in the latest promotional campaign by the state's principal road safety body, the Transport Accident Commission (TAC).
In a press release issued a week ago, the TAC announced that it and the small municipality have jointly established a Facebook page, 'Rename Speed', exhorting visitors to the page to click on the 'like' button to register their support. Once the site records 10,000 'likes', the town will change its name from Speed to 'SpeedKills'. In exchange the TAC will donate $10,000 to the local Lions Club.
This week, one of the Melbourne daily papers also published a story concerning one of the town's residents, a certain Phil Down, who was reportedly planning to change his name to 'Phil Slow Down' in sympathy with the road safety message.
Where does one start with this sort of bandwagon campaign? It's almost admirable in itself because it donates to a worthy charity. It gains the attention of media readership well beyond the borders of the township itself, not least of all through the avenue of social media. And by relying on an old established catchphrase ('Speed Kills') the campaign has immediate recognition and penetration within the wider community.
There are many positive elements in the campaign -- if you're a marketing or PR professional.
But...
The TAC is buying the collaboration of the community through a donation that would be hard for any charity to knock back. In other circumstances that's called payola.
There's no reason to think that the campaign is likely to change the behaviour of drivers most at risk either.
One might argue that any effectiveness in the decades-old catchphrase, 'Speed Kills', is possibly eroded by a campaign that seems frivolous on the face of it -- and that's presuming that you even subscribe to the view that 'Speed Kills' offers any value to the community's broader road safety strategy.
The phrase itself is deemed simplistic and fails to address all the causes of road toll fatalities. Speed can certainly be a contributing factor, but it's hardly the only factor in any given crash.
For instance, a report compiled by the Monash University Research Centre estimates that as many as 0.8 per cent of all road fatalities between 1997 and 2004 are actually suicides. 0.8 per cent doesn't sound much, but it's about 11 fatalities a year throughout the country. Each one is someone's daughter or -- more likely statistically -- someone's son. Those are the known statistics, based on crash investigation data that indicated the vehicle was under full control at the time of the impact or the pedestrian stepped out in front of a heavy commercial vehicle fully aware of his or her actions. Little is known as to whether other single-vehicle crashes or pedestrian fatalities might also be suicides. Taking one's own life by car is just one type of road-related fatality that is overlooked in the 'Speed Kills' propaganda.
Perhaps a new series of phrases might be introduced, among them 'suicide kills'. Such a slogan might illustrate to road users just how equally ridiculous is 'Speed Kills'.
And perhaps we could pass the hat around to donate to the TAC. The safety body could then change its name to TACKY.
Whether it's from the www, the latest motor show or the back doors of a carmaker near you, Carsales Network Confidential features the good oil other sources either won't publish, don't care about or don't know. Heard an automotive rumour or new model tip? Then let us know - editor@carpoint.com.au
Serpent seduced by 'Jaffa'
It's not every day that you get to witness a snake and a bright orange C 63 Mercedes simultaneously in the wilds of Melbourne.
The two came together at the Midsumma Festival, a lifestyle event held in Birrarung Marr on the Yarra River to celebrate queer culture. Mercedes-Benz had on display 'Jaffa', the orange C 63 Mercedes AMG that was originally unveiled at the Australian International Motor Show in Sydney three months back.
Apparently one of the visitors to the Festival brought along a pet snake, which was attracted to the high-performance AMG model. The owner of the snake explained to David McCarthy, Senior Manager Corporate Communications for the prestige importer, that snakes can't see all colours, but orange is one they can see.
McCarthy tells us that a lot of human visitors to the festival objects were drawn to both the reptile and the car -- as the pics show. Benz was there supporting Sircuit Bar in an official sponsorship agreement and McCarthy estimates that "there were at least a thousand people" who checked out the C 63 during the day he was there.
"The sales people ran out of business cards," he told the Carsales Network. The arrival of the snake led to the attendees twittering away to their hearts' delight. McCarthy believes it was a remarkable turn of events that helped promote the brand strongly on the day.
"It was just extraordinary," he said.
In McCarthy's view, car companies are missing out on sales because they don't tailor their marketing to address interest in the automotive industry from the gay and lesbian community.
"There's an assumption," he said, "that gay people are not interested in cars..."
The lustre of Opel
Since the announcement that German GM brand Opel would launch in Australia, there's been plenty of discussion -- but not among Holden dealers and their employees it seems. The word is that Holden has clamped down on its staff discussing the subject of Opel with the media.
That hasn't stopped the media drawing their own conclusions independently of course. There are plenty of opinions among the country's motoring press, so let's offer a few examples to illustrate how Opel's introduction here might pan out.
The first is Volkswagen, which Opel aims to rival with a product range upmarket of Holden's Korean-built imported models. VW has been marketing its range aggressively and is the tenth most popular brand in Australia. It's about 2500 vehicles away from moving up into eighth place -- and with the Amarok joining the range this year (in fact the local launch is next month), Volkswagen's almost a certainty to overtake a couple of Japanese importers.
So if Opel markets itself along the same lines, can it be similarly successful? Some in the media don't think so. It takes a long time to establish a brand and Volkswagen's 'meteoric' rise is one of those overnight success stories 20 years in the making. The importer relaunched its passenger cars in the early 1990s after several years of selling just its commercial vehicle range here. With the rise of the Deutschmark, the volume-selling brand could no longer compete with upcoming Japanese brands throughout the 1980s.
Volkswagen's example could give hope to Opel and its local staff, but it will take Opel a number of years to establish itself here and it won't be able to draw on its long-standing connection with Holden, for obvious reasons.
Renault is a contrary example of just how hard it can be to establish even a well-known name in the country -- and Opel is not 'well-known' other than within the circles of very well informed punters.
With the imminent reintroduction of the Saab brand to Australia, the Swedes are hoping that they can revitalise the brand name with new product, including the company's first SUV, the 9-4X. Opel will likely watch Saab's progress very attentively.
But you know the brand that is possibly the best pointer for whether Opel will succeed? Isuzu Ute...
The manufacturer of the D-MAX and its local import arm arrived here two years ago, during the depths of the GFC, with a fairly conservative sales forecast and nothing in the way of new product. Yet the company has seen slow but steady growth in sales since its local launch. The importer is basically marketing a vehicle that shares its looks and mechanicals with Holden's original RA model Rodeo and most of the underpinnings are found in Holden's Colorado also -- the two vehicles are even built in Thailand by the same company. Isuzu Ute is selling the D-MAX in numbers above the original sales forecast and is proving that a former supplier to Holden can do well on its lonesome.
Perhaps Opel could take a lead from the commercial vehicle distributor.
Despite Holden's directive to staff not to discuss the matter, someone who works in sales at a Holden dealership knows someone else working for the Carsales Network and did agree to provide his anonymous opinion as to how the local launch of the Opel brand might affect Holden in Australia:
Opel cars coming here may not impact too much on sales we think, as the Opel brand will target a more luxury premium market I would say. Holden in Australia targets mainstream buyers... although those buyers want quality vehicles and are also price-conscious and focused.
On hearing Opel was coming I initially thought [there would be] perhaps more opportunities to sell if there were to be joint franchises possible. Colleagues have similar thoughts.
Having stopped the Opel Astra/Vectra [we haven't] really noticed a drop in sales as such -- as they have been replaced by the very popular Korean-built Cruze, which is still selling strongly. Also the Barina and the Captiva are also proving very popular.
Repeat business [from Astra/Vectra owners] is hard to define definitely, but we are seeing owners who have a Barina still trading into the new Barina -- and similarly [there are] the Astra owners trading into a new Cruze.
Not sure that the introduction of Opel will impact greatly with repeat business as we think that price-focused buyers will see the benefits of the Holden brand when comparing to the Opel. Holden's strong branding in Australia will hold it in good stead regardless of the Opel launch.
And when you really think about it they are both GM brands. Upside could be the opportunity to consolidate GM branding with perhaps joint franchises.
Confused signals sent by road safety stunt?
The township of Speed, in Victoria's Mallee region is a willing partner in the latest promotional campaign by the state's principal road safety body, the Transport Accident Commission (TAC).
In a press release issued a week ago, the TAC announced that it and the small municipality have jointly established a Facebook page, 'Rename Speed', exhorting visitors to the page to click on the 'like' button to register their support. Once the site records 10,000 'likes', the town will change its name from Speed to 'SpeedKills'. In exchange the TAC will donate $10,000 to the local Lions Club.
This week, one of the Melbourne daily papers also published a story concerning one of the town's residents, a certain Phil Down, who was reportedly planning to change his name to 'Phil Slow Down' in sympathy with the road safety message.
Where does one start with this sort of bandwagon campaign? It's almost admirable in itself because it donates to a worthy charity. It gains the attention of media readership well beyond the borders of the township itself, not least of all through the avenue of social media. And by relying on an old established catchphrase ('Speed Kills') the campaign has immediate recognition and penetration within the wider community.
There are many positive elements in the campaign -- if you're a marketing or PR professional.
But...
The TAC is buying the collaboration of the community through a donation that would be hard for any charity to knock back. In other circumstances that's called payola.
There's no reason to think that the campaign is likely to change the behaviour of drivers most at risk either.
One might argue that any effectiveness in the decades-old catchphrase, 'Speed Kills', is possibly eroded by a campaign that seems frivolous on the face of it -- and that's presuming that you even subscribe to the view that 'Speed Kills' offers any value to the community's broader road safety strategy.
The phrase itself is deemed simplistic and fails to address all the causes of road toll fatalities. Speed can certainly be a contributing factor, but it's hardly the only factor in any given crash.
For instance, a report compiled by the Monash University Research Centre estimates that as many as 0.8 per cent of all road fatalities between 1997 and 2004 are actually suicides. 0.8 per cent doesn't sound much, but it's about 11 fatalities a year throughout the country. Each one is someone's daughter or -- more likely statistically -- someone's son. Those are the known statistics, based on crash investigation data that indicated the vehicle was under full control at the time of the impact or the pedestrian stepped out in front of a heavy commercial vehicle fully aware of his or her actions. Little is known as to whether other single-vehicle crashes or pedestrian fatalities might also be suicides. Taking one's own life by car is just one type of road-related fatality that is overlooked in the 'Speed Kills' propaganda.
Perhaps a new series of phrases might be introduced, among them 'suicide kills'. Such a slogan might illustrate to road users just how equally ridiculous is 'Speed Kills'.
And perhaps we could pass the hat around to donate to the TAC. The safety body could then change its name to TACKY.
Car vs bike drift battle
Think drifting is only done on four wheels? Think again...
If you thought that drifting was a sport populated solely by four-wheeled vehicles, you may need to take a seat. The land of the drift king is also becoming popular among motorcyclists, and the video below is a fine example.
Drifting -- the act of spinning the rear wheel(s) while cornering to initiate power oversteer and create loads of tyre smoke in the process -- is not easily done with grace, but Nick 'Apex' Brocha and Jim Guthrie put on an impressive show at the Sandia Motorsports Park in New Mexico, US, vieing head-to-head on track for the first time.
The car in question is a modified Mazda RX-7 powered by a Corvette V8, while the bike is a modified Kawasaki Ninja ZX-10R, featuring a stretched swing arm for greater control and more 'artistic navigation', as Brocha puts it.
The high speed drift battle doesn't disappoint, with heaps of slow motion sequences as two- and four-wheels battle for dominance in this spectacular motorsport.
If you thought that drifting was a sport populated solely by four-wheeled vehicles, you may need to take a seat. The land of the drift king is also becoming popular among motorcyclists, and the video below is a fine example.
Drifting -- the act of spinning the rear wheel(s) while cornering to initiate power oversteer and create loads of tyre smoke in the process -- is not easily done with grace, but Nick 'Apex' Brocha and Jim Guthrie put on an impressive show at the Sandia Motorsports Park in New Mexico, US, vieing head-to-head on track for the first time.
The car in question is a modified Mazda RX-7 powered by a Corvette V8, while the bike is a modified Kawasaki Ninja ZX-10R, featuring a stretched swing arm for greater control and more 'artistic navigation', as Brocha puts it.
The high speed drift battle doesn't disappoint, with heaps of slow motion sequences as two- and four-wheels battle for dominance in this spectacular motorsport.
New Ford Territory: model by model
There will be something for everyone when the facelifted Ford Territory arrives in April, with three model grades - TX, TS and Titanium
discount new cars games » Get the best price on a new Ford
While most of the phenomenal growth in the SUV market has come from vehicles in the $25,000 to $40,000 price range, Ford wants to take the new Territory upstream to better compete in the $50,000 to $60,000 bracket when it arrives in showrooms in late April.
The company believes there is a groundswell of customers who've owned Territorys or similar vehicles for years who want to upgrade to new levels of luxury – without leaving the medium-SUV class.
The arrival of a diesel is also likely to lure some buyers from other prestige models, while the richer mix will also help Ford's bottom line.
There will still be a base model Territory, of course, and we're tipping Ford will at least match if not better the current runout pricing of $38,990 drive-away when the new model arrives – because its rivals are selling for several thousand dollars below that amount.
As before there are three models in the new line-up: TX, TS and Titanium (which replaces the Ghia nameplate).
The good news for those on a budget is that the base model Territory doesn't look like a pauper pack. It gets the same projector headlights and wide-mouth grille as the rest of the range, and new sleek tail-lights.
But buyers of the base model Territory TX may be miffed that they miss out on the 8-inch touch screen display that the two other models come with. Instead, the basic Territory makes do with a smaller, 5.8-inch screen that must be operated with the piano-key buttons below it.
This seems an odd oversight for a company that usually has an eye for such detail; a $32,000 Holden Commodore has a touch screen as standard equipment, so why would it not be standard on a $38,000 (or thereabouts) Ford Territory?
There are some other nice touches, though. The Territory gets an all-new dash, and the new steering wheel and instrument display borrowed from the latest Ford Falcon.
But perhaps of more importance is the fact that one of the Territory's consoles now houses a tissue box holder, as the Falcon has done since 2002. Ford designers have made it fit the newer, larger Kleenex tissue box (the box changed a couple of years ago making the Falcon cubbie redundant). So, finally, drivers of the Ford that carries the most number of kids can now give them a wiping, or a swiping.
Ford has not confirmed it, but we believe all three model grades will be available with diesel or petrol engines, in two-wheel-drive or all-wheel-drive. Automatic is the only transmission offered.Importantly from a safety viewpoint, all three grades will also get rear park sensors (at least -- rear camera will likely make it to standard kit by launch time) and seven airbags. The trim panel under the new Territory's steering wheel had a 'airbag' badge even in the base model -- well, the cars on display at Ford's unveil anyway...
Based on what we've been told so far, here's how the new line-up compares outside and in:
Ford Territory TX (most affordable model, third image)
How to pick it from the outside:
Black upper grille
Satin finish on lower grille mouth bars
Black skid plates front and rear
Black rear bumper insert
Black fender feature that houses side indicator lamp
17-inch alloy wheels
How to pick it from the inside:
No touch screen (5.8-inch screen uses 'piano-key' buttons)
Black upholstery
Black steering wheel-mounted controls
Satin door handle releases
Ford Territory TS (middle of the range, second image)
How to pick it from the outside:
Satin finish on upper and lower grille mouth bars
Satin skid plate front and rear
Black rear bumper insert
Black fender feature that houses side indicator lamp
Front fog lights with chrome housing
18-inch alloy wheels
How to pick it from the inside:
8-inch touch screen
Black upholstery with suede-look side bolsters
Satin steering wheel-mounted controls
Satin door handle releases
Ford Territory Titanium (top of the range, first image)
How to pick it from the outside:
Chrome finish on upper and lower grille mouth bars
Satin skid plate front and rear
LED daylight running lights with chrome housing
Black rear bumper insert with fake chrome exhaust outlets either side
Body colour fender feature with chrome flash
Side indicators in mirror scalps
Unique 18-inch alloy wheels
How to pick it from the inside:
8-inch touch screen
Leather seats (black or beige)
Satin steering wheel-mounted controls
Chrome door handle releases
Satin and chrome highlights on switchgear
Paint: choose your hues
There is only one non-metallic colour (white). The rest of the selection is:
Lightning Strike (silver)
Chill (silver-gold)
Smoke (dark silver)
Havana (warm mocha)
Seduce (red)
Vanish (blue-black)
Edge (gun-metal grey)
Silhouette (black)
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at carsales' mobile site.
discount new cars games » Get the best price on a new Ford
While most of the phenomenal growth in the SUV market has come from vehicles in the $25,000 to $40,000 price range, Ford wants to take the new Territory upstream to better compete in the $50,000 to $60,000 bracket when it arrives in showrooms in late April.
The company believes there is a groundswell of customers who've owned Territorys or similar vehicles for years who want to upgrade to new levels of luxury – without leaving the medium-SUV class.
The arrival of a diesel is also likely to lure some buyers from other prestige models, while the richer mix will also help Ford's bottom line.
There will still be a base model Territory, of course, and we're tipping Ford will at least match if not better the current runout pricing of $38,990 drive-away when the new model arrives – because its rivals are selling for several thousand dollars below that amount.
As before there are three models in the new line-up: TX, TS and Titanium (which replaces the Ghia nameplate).
The good news for those on a budget is that the base model Territory doesn't look like a pauper pack. It gets the same projector headlights and wide-mouth grille as the rest of the range, and new sleek tail-lights.
But buyers of the base model Territory TX may be miffed that they miss out on the 8-inch touch screen display that the two other models come with. Instead, the basic Territory makes do with a smaller, 5.8-inch screen that must be operated with the piano-key buttons below it.
This seems an odd oversight for a company that usually has an eye for such detail; a $32,000 Holden Commodore has a touch screen as standard equipment, so why would it not be standard on a $38,000 (or thereabouts) Ford Territory?
There are some other nice touches, though. The Territory gets an all-new dash, and the new steering wheel and instrument display borrowed from the latest Ford Falcon.
But perhaps of more importance is the fact that one of the Territory's consoles now houses a tissue box holder, as the Falcon has done since 2002. Ford designers have made it fit the newer, larger Kleenex tissue box (the box changed a couple of years ago making the Falcon cubbie redundant). So, finally, drivers of the Ford that carries the most number of kids can now give them a wiping, or a swiping.
Ford has not confirmed it, but we believe all three model grades will be available with diesel or petrol engines, in two-wheel-drive or all-wheel-drive. Automatic is the only transmission offered.Importantly from a safety viewpoint, all three grades will also get rear park sensors (at least -- rear camera will likely make it to standard kit by launch time) and seven airbags. The trim panel under the new Territory's steering wheel had a 'airbag' badge even in the base model -- well, the cars on display at Ford's unveil anyway...
Based on what we've been told so far, here's how the new line-up compares outside and in:
Ford Territory TX (most affordable model, third image)
How to pick it from the outside:
Black upper grille
Satin finish on lower grille mouth bars
Black skid plates front and rear
Black rear bumper insert
Black fender feature that houses side indicator lamp
17-inch alloy wheels
How to pick it from the inside:
No touch screen (5.8-inch screen uses 'piano-key' buttons)
Black upholstery
Black steering wheel-mounted controls
Satin door handle releases
Ford Territory TS (middle of the range, second image)
How to pick it from the outside:
Satin finish on upper and lower grille mouth bars
Satin skid plate front and rear
Black rear bumper insert
Black fender feature that houses side indicator lamp
Front fog lights with chrome housing
18-inch alloy wheels
How to pick it from the inside:
8-inch touch screen
Black upholstery with suede-look side bolsters
Satin steering wheel-mounted controls
Satin door handle releases
Ford Territory Titanium (top of the range, first image)
How to pick it from the outside:
Chrome finish on upper and lower grille mouth bars
Satin skid plate front and rear
LED daylight running lights with chrome housing
Black rear bumper insert with fake chrome exhaust outlets either side
Body colour fender feature with chrome flash
Side indicators in mirror scalps
Unique 18-inch alloy wheels
How to pick it from the inside:
8-inch touch screen
Leather seats (black or beige)
Satin steering wheel-mounted controls
Chrome door handle releases
Satin and chrome highlights on switchgear
Paint: choose your hues
There is only one non-metallic colour (white). The rest of the selection is:
Lightning Strike (silver)
Chill (silver-gold)
Smoke (dark silver)
Havana (warm mocha)
Seduce (red)
Vanish (blue-black)
Edge (gun-metal grey)
Silhouette (black)
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at carsales' mobile site.
Green Fords safe: Graziano
Ford boss says the government's axing of the Green Car fund will not hurt existing projects
discount new cars » Get the best price on a new Ford
Ford's four-cylinder Falcon and high-tech LPG powertrain projects are safe despite the axing of the Green Car Innovation Fund by the Federal Government.
Killed off last month as part of a package of measures to help pay for infrastructure reconstruction after Queensland's flood and cyclone disasters, the GCIF was set up to provide tax-payer funded grants to cement local production of more fuel efficient vehicles.
Incoming Ford Australia President Bob Graziano confirmed that funding of his company's existing Falcon based programs was safe. He stated categorically that both the ECOBoost turbocharged four-cylinder Falcon and high-efficiency liquid injection LPG would come to market on time.
Beyond that, however, Graziano would not comment on Ford or the Federal Chamber of Automotive Industries' communications with the Gillard Government following the program's cancellation.
Mass media has reported that Ford, along with Holden, Toyota and the FCAI have written to government requesting a 'please explain' regarding the GCIF axing. The ABC reported yesterday that as part of the agreement to establish the GCIF, government had requested significant undertakings from the local manufacturers regarding forward investment.
Graziano refused to comment on the content of Ford's communications with government over the GCIF dismantling.
"I don't want to get into the specifics of the letter but we're disappointed with the decision and look forward to having some dialogue with the government," Graziano straight batted.
"Right now the use of the Green Car fund for us is the use of some of the technologies we've talked about today [Territory launch] and my understanding is that remains in place. So near-term we don't see that that is going to change," he said.
Graziano would not confirm whether any investment decisions had been put on hold following the government's announcement. Nor would he comment on whether the changes put the likely arrival of Ford's electric and hybrid variants of new generation Focus and C-Max at risk.
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at the carsales mobile site
discount new cars » Get the best price on a new Ford
Ford's four-cylinder Falcon and high-tech LPG powertrain projects are safe despite the axing of the Green Car Innovation Fund by the Federal Government.
Killed off last month as part of a package of measures to help pay for infrastructure reconstruction after Queensland's flood and cyclone disasters, the GCIF was set up to provide tax-payer funded grants to cement local production of more fuel efficient vehicles.
Incoming Ford Australia President Bob Graziano confirmed that funding of his company's existing Falcon based programs was safe. He stated categorically that both the ECOBoost turbocharged four-cylinder Falcon and high-efficiency liquid injection LPG would come to market on time.
Beyond that, however, Graziano would not comment on Ford or the Federal Chamber of Automotive Industries' communications with the Gillard Government following the program's cancellation.
Mass media has reported that Ford, along with Holden, Toyota and the FCAI have written to government requesting a 'please explain' regarding the GCIF axing. The ABC reported yesterday that as part of the agreement to establish the GCIF, government had requested significant undertakings from the local manufacturers regarding forward investment.
Graziano refused to comment on the content of Ford's communications with government over the GCIF dismantling.
"I don't want to get into the specifics of the letter but we're disappointed with the decision and look forward to having some dialogue with the government," Graziano straight batted.
"Right now the use of the Green Car fund for us is the use of some of the technologies we've talked about today [Territory launch] and my understanding is that remains in place. So near-term we don't see that that is going to change," he said.
Graziano would not confirm whether any investment decisions had been put on hold following the government's announcement. Nor would he comment on whether the changes put the likely arrival of Ford's electric and hybrid variants of new generation Focus and C-Max at risk.
Read the latest Carsales Network news and reviews on your mobile, iPhone or PDA at the carsales mobile site
Chủ Nhật, 18 tháng 3, 2012
Why governments shouldn't let go of the Australian car industry
Funding cuts reignite debate about taxpayer support of local car games manufacturing
Comment
Now you see it, now you don't. Chilling before-and-after shots of cyclone and flood damage help illustrate the devastation from natural disasters that have swept our nation in recent weeks. But 60,000 auto workers who live nowhere near the storm-affected areas may also feel in the impact -- several years from now.
In the wake of mother nature's fury the Federal Government moved swiftly -- axing the Green Car Fund without a moment's notice to help pay for the reconstruction of ravaged communities.
There is no doubt the government had to take drastic action in these extraordinary times. But the aftermath of the cyclones and floods nevertheless sent shockwaves to the global headquarters of the three local car makers -- Holden, Ford and Toyota -- who are each about to make critical decisions in the next six months about vehicles they may or may not build here from 2016 onwards.
Some sections of the Australian community were overjoyed by the announcement of funding cuts to an industry they believe is getting fat off the taxpayer -- while the hearts of 60,000 auto workers skipped a beat as they wondered how it would affect them.
Now, after a tumultuous fortnight, the Federal Government has reassured Australian car makers that the worst of its funding cuts are over.
On late Wednesday afternoon last week, the Prime Minister Julia Gillard and industry minister, Senator Kim Carr, had a meeting in Canberra with the chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar, and Holden boss Mike Devereux, who is also chairman of the FCAI.
The industry executives called for the crisis meeting to seek assurance that no further cuts were imminent after the Gillard Government halted the Green Car Innovation Fund to help pay for disaster-relief efforts.
"In an attempt to recover from a natural disaster there was a risk of creating a man-made disaster," the chief executive of the Federal Chamber of Automotive Industries had warned.
After Wednesday's meeting Senator Carr's office issued a statement under the heading "Keeping Our Industry Strong", which said in part:
"The recent floods and other natural disasters across our nation represent an extraordinary and unprecedented set of circumstances. This has required some tough budget cutbacks, including savings in the Federal Government's New Car Plan, so that funds can be redirected into the rebuilding of roads, bridges, rail lines and public facilities in flood ravaged communities.
"But the Government understands the need for certainty and the long lead times for investment in the highly competitive automotive industry. The Prime Minister and Minister Carr have confirmed to the automotive industry that all other parts of the New Car Plan ... will be retained.
"The New Car Plan helped see Australia through the worst economic crisis faced by manufacturing since the Great Depression and the changes will help ensure its future. What we are making is a commitment to all other elements of the New Car Plan."
In 2007 the Federal Government pledged $5.4 billion of financial support to the local car making industry and its suppliers through to 2020 -- and called it the New Car Plan. In 2008 this figure grew to $6.2 billion with the addition of the Green Car Innovation Fund -- and the name changed to New Car Plan for a Greener Future.
The extra GCIF funding, however, was short-lived. It was cut twice in the lead-up to the 2010 Federal election -- $200 million was cut to the supplier base and a further $200 million was cut to vehicle manufacturers. Following the disasters in January, the remaining GCIF funds were frozen -- but funding already pledged was secure.
Holden received $149 million from the GCIF and another $30 million from the South Australian government to go towards its new Cruze small car, which will be made at its Elizabeth factory from next month.
Ford received $42 million from the GCIF and an undisclosed amount from the Victorian Government to go towards a diesel Ford Territory and the four-cylinder Falcon.
Toyota received $35 million from the GCIF and an undisclosed amount from the Victorian government to go towards the hybrid Camry program.
The Victorian government chose not to reveal exact funding figures on these occasions but the amount is well into the millions in both cases.
All this sounds like a vast sum of money -- and it is -- but it is no different to what other governments in other parts of the world do to attract car makers.
Dozens of states in North America offer incentives in the form of lower tax rates or rebates in return for setting up factories. That's why brands such as Toyota, Nissan, Hyundai, Kia, BMW, Mercedes-Benz and Volkswagen (among others) have established green-field car-making facilities there. Indeed, one of the reasons the three North American domestic makers (General Motors, Ford and Chrysler) have struggled to compete on their home turf is because of the high level of assistance offered to foreign companies to establish car factories -- and create thousands of jobs.
Government assistance is happening on Australia's doorstep, too. The Thailand government has been offering incentives to foreign makers to establish factories there for more than a decade. And guess what? Honda, Toyota, Nissan, Ford and Mazda now make cars or utes there in globally significant numbers.
Why is it that other countries want to save or create jobs in the car industry -- but a broad section of Australians don't? Is it because they don't realise the ramifications of not having a car industry?
Clearly most Australians aren't living in fear of losing their jobs. More than 1 million people treated themselves to a new car last year -- the second-best on record -- although 90 per cent of the cars were imported.
Some senior executives in Australia who represent imported car brands question the level of taxpayer assistance offered to our three local carmakers. Some of these executives offer these opinions to journalists off the record, as background, so they can still mingle guilt-free with their friends from local car makers at motor shows.
Others, such as Suzuki Australia general manager Tony Devers, are happier to put their name to their views. Devers told the Carsales Network last year that Australia should switch its efforts to building more relevant cars -- or become a hub for research and engineering.
By his estimation "Ford would make more money importing cars from Thailand than making them in Australia". He would know. Suzuki is about to join other Japanese brands and establish a car factory there in a couple of years -- thanks to assistance from the Thai government.
Incidentally, the Carsales Network has since been told that Ford Australia contributes 40 per cent of total profit to Ford's Asia-Pacific operations -- and local carmaking is a "significant proportion" of that.
Devers also calculated that $6.2 billion of Australian government funding roughly equates to $100,000 per car industry employee -- if the figure of 60,000 workers spread across the three carmakers and their suppliers is accurate.
"Nobody's really done the sums, have they?" Devers said, suggesting that the government was blinded by "an overriding idealism that we need [a manufacturing] industry".
But spread over the 13 years of the program, the $6.2 billion equates to $7700 per person per year. There's a fair chance the Federal Government will get more than that back from each worker in income tax -- and GST from goods and services they purchase.
What is also conveniently overlooked by detractors is the estimated $16 billion the car industry (that is, vehicle manufacturers and suppliers) will invest as a result of government contributions. That $16 billion does not include wages, incidentally.
In the outline for the GCIF in 2008 the government said: "Manufacturing is the mainstay of families and the lifeblood of communities around the country. We can't have a balanced economy without it -- and we can't have a just society without it either.
"The automotive industry makes a huge contribution -- both direct and indirect -- to Australian output, jobs, exports, innovation and skills. Its latent significance to national security -- as a storehouse of industrial know-how and capability -- is immeasurable."
In 2007-08, the report said, Australia exported $5.6 billion worth of vehicles and vehicle components. That's more than Australia earned from exports of wool, wheat, beef or wine.
The government acknowledged the shift in demand to more economical vehicles. "The world is changing and Australia's automotive industry must change with it. Our choices are simple -- our industry must either adapt to the new environment, or face extinction," the report said bluntly.
"Adaptation will require significant investment in new technologies. [And] we will only get that investment if people believe the industry has a future and are certain of the Australian Government's commitment."
It is interesting to revisit the original GCIF document in the wake of having the rug pulled a fortnight ago. The reality is that the same principles -- and threats -- still apply to the car industry today as they did in 2008.
While the three local carmakers have calmed down now after being reassured there will be no further cuts, they had a tense lead-up to last Wednesday's meeting, especially after the Federal Opposition threatened to make further cuts to car industry funding if it wins power at the next election.
Presumably to make sure the Federal Government's commitment to the car industry remained on public record, the FCAI issuing a statement that said in part:
"It was good to meet with the Prime Minister and have the opportunity to reinforce the commitments the Government had previously made to the industry as well as highlight the need for certainty in the future," FCAI exec McKellar said.
"Public private partnerships underpin the industry in every automotive manufacturing economy and this co-investment has developed an industry that directly employs more than 50,000 people with the capability to design and engineer world-class vehicles for Australia and global markets.
"The vehicle manufacturers and component suppliers can be reassured by the confirmation from the Australian Government that no further policy changes will be made."
The talk of funding cuts struck at a critical time for the three local carmakers because each is vulnerable for a different reason.
In the next six months Ford and Holden will decide what type of cars they will build from 2016 onwards -- and whether or not they will be built here.
Ford Australia built just 45,000 vehicles at its Broadmeadows factory last year -- including fewer than 30,000 Falcons -- and the parent company in Detroit has announced there will be no more one-off vehicles such as the Falcon and Territory for individual countries.
This means that Ford Australia must make a business case to Detroit as to why future Falcon- and Territory-type vehicles should be made in low numbers in Australia, when their equivalent US models will be made more cost-effectively in the hundreds of thousands in North American factories -- and could be imported with a zero tariff under the free trade agreement Australia has with the USA.
In January this year, Holden pledged its intentions to continue making the Commodore locally well into the 2020s -- but it would not be viable without government assistance.
Holden says its factory -- and any car factory for that matter -- must produce at least 100,000 vehicles per year to turn a profit. But last year its Adelaide plant built fewer than 60,000 vehicles.
Holden's parent company General Motors could potentially shift Commodore production to one of its under-utilised plants in North America, or elsewhere in the Asia-Pacific region. Holden already assembles the Caprice in China, while the majority of its small cars come from factories in Korea and Thailand.
Toyota built in excess of 120,000 vehicles (most of which were exported) last year but, despite producing by far the most number of vehicles, it is possibly the most vulnerable of the three local makers. The strong Australian currency has meant that Toyota Australia has been losing money on every Camry it exports.
In the next 12 months Toyota will make a decision on whether or not to build the 2017 Camry in Australia -- or import an identical vehicle from its Thailand factory with a zero tariff because of a free trade agreement Australia has with that country.
All this explains why the FCAI issued the following warning after the GCIF was axed: "The decision to abolish the Green Car Innovation Fund comes as an unwelcome surprise and it sends an adverse signal to international investors responsible for future investment in the Australian industry.
"We urge the Government not to renege on the clear policy framework which it has implemented to secure new investment and jobs in the industry. We urge the Government to re-think this decision.
"The program was originally put in place in response to the 2008 review of the automotive industry, after extensive consultation with the industry and other stakeholders and it is a key element of the Government's New Car Plan."
The boss of Jaguar and Land Rover in Australia, David Blackhall, has a unique perspective on the dilemma facing Australian car manufacturers.
Before he took charge of the prestige brands locally seven years ago, he spent the majority of his automotive career -- more than 22 years -- with Ford Australia and has an intimate understanding of the local car industry. He was also formerly the marketing director of Ford in Taiwan.
As of January 1, he is responsible for Jaguar and Land Rover in the Asia-Pacific region and has just returned from a whistle-stop tour of his new territory. He is also on the FCAI executive committee.
"I think it's a worrying time for the three local manufacturers," he told the Carsales Network.
"[The industry] is in an extreme state of flux right now and there'll be some very important decisions made in the next six to 12 months about where companies place investment bets. That's not good news if you're looking at the big picture in Australia."
Blackhall is concerned that the lack of warning about the axing of the Green Car Fund will spook the global bosses of Ford, General Motors and Toyota.
"The most unnerving thing [about the Federal Government's funding cuts] is the without-warning change," he said.
"What [car] companies need is stability and certainty, to enable them to plan for the future. When you have something in place, you make big investment decisions based on that being in place -- but when that changes overnight, that changes the situation dramatically.
"If you're the boss of a car company sitting in Detroit or Japan and you're looking at the sudden without-warning move the Australian government has made, that does not instill you with confidence about making investment decisions here. [This is] especially [the case] when other governments -- some of them neighbouring countries to Australia -- are bending over backwards to encourage vehicle manufacturing to create jobs in those countries."
Blackhall said a reduction in -- or removal of -- financial support "alters the economic sums significantly".
"I'm not saying Julia Gillard could do anything else in the wake of floods and cyclones but when the policy changes overnight it changes the business case dramatically."
He said one of the biggest hurdles facing the local car industry was non-tariff trade barriers.
"Australia has signed Free Trade Agreements with some of its neighbours, and that's all well and good, but there hasn't been enough attention paid to the non-tariff barriers."
In Thailand, some cars attract a registration fee that is up to 200 per cent of the cost of the car because of the vehicle's engine size -- and Australian cars happen to fall into that category. In Singapore there is a modest import tariff, but the registration fee is equivalent to 100 per cent of the cost of the car.
"Successive Australian governments have talked about the level playing field and Australia's commitment to free trade... But what I've been surprised by in my first few weeks of looking at the Asian markets are the non-tariff barriers in countries such as Korea, Thailand and Malaysia," Blackhall said.
"There can be administrative barriers and bureaucratic processes that frankly are sometimes more difficult to negotiate that even figuring out what the price should be.
"A lot of effort goes into creating the perception of a level playing field by various governments around the region, but there ought to be an opportunity for those governments to sit down together and say ‘hey, are we really serious about this?'.
"I think Australia's attitude has been trying to do the right thing and what's best for world trade. No-one wants to go back to the 1930s when import tariffs were 60 and 70 per cent. But Australia has definitely led the field [in terms of free trade] and there are other countries with more nationalistic views that perhaps aren't coming along quite as easily."
He said a return to higher import tariffs was not the answer in Australia.
"Raising our import tariffs would be the wrong thing to do. Instead, real energy needs to be applied to have dialogue in ASEAN and other forums."
But even with non-tariff barriers removed, would Australian-made cars find wide appeal in our neighbouring countries? Small cars and body-on-frame utilities (such as the Toyota HiLux) dominate Asian-Pacific car sales. Large cars are even out of vogue in North America, as buyers shift to compact vehicles and SUVs.
Thailand is the world's capital for building body-on-frame (workhorse) utilities; they build them better and cheaper than any other country in the world so it is unlikely Australian factories could compete with them.
As Ford and Holden have proved, building small cars in Australia is not viable without government assistance. Ford halted plans to build the new Focus at Broadmeadows at the 11th hour because of a lack of government funding at the time. Holden got the Cruze hatch over the line because of government funding.
The inconvenient truth is that all these factors combine to create a grim outlook for local carmakers -- unless there is taxpayer support.
Basically, Australia needs to decide if it wants a car manufacturing industry -- and get behind it, or get out of the business.
Before you decide, just ask yourself what the 60,000 displaced workers are going to do and who is going to pay for their employment benefits, because there aren't that many research and engineering jobs to go around if the shop shuts on manufacturing.
Indeed, 60,000 jobless people would likely leave a black hole far greater than any cyclone or flood damage. Now you see them, now you don't.
Comment
Now you see it, now you don't. Chilling before-and-after shots of cyclone and flood damage help illustrate the devastation from natural disasters that have swept our nation in recent weeks. But 60,000 auto workers who live nowhere near the storm-affected areas may also feel in the impact -- several years from now.
In the wake of mother nature's fury the Federal Government moved swiftly -- axing the Green Car Fund without a moment's notice to help pay for the reconstruction of ravaged communities.
There is no doubt the government had to take drastic action in these extraordinary times. But the aftermath of the cyclones and floods nevertheless sent shockwaves to the global headquarters of the three local car makers -- Holden, Ford and Toyota -- who are each about to make critical decisions in the next six months about vehicles they may or may not build here from 2016 onwards.
Some sections of the Australian community were overjoyed by the announcement of funding cuts to an industry they believe is getting fat off the taxpayer -- while the hearts of 60,000 auto workers skipped a beat as they wondered how it would affect them.
Now, after a tumultuous fortnight, the Federal Government has reassured Australian car makers that the worst of its funding cuts are over.
On late Wednesday afternoon last week, the Prime Minister Julia Gillard and industry minister, Senator Kim Carr, had a meeting in Canberra with the chief executive of the Federal Chamber of Automotive Industries, Andrew McKellar, and Holden boss Mike Devereux, who is also chairman of the FCAI.
The industry executives called for the crisis meeting to seek assurance that no further cuts were imminent after the Gillard Government halted the Green Car Innovation Fund to help pay for disaster-relief efforts.
"In an attempt to recover from a natural disaster there was a risk of creating a man-made disaster," the chief executive of the Federal Chamber of Automotive Industries had warned.
After Wednesday's meeting Senator Carr's office issued a statement under the heading "Keeping Our Industry Strong", which said in part:
"The recent floods and other natural disasters across our nation represent an extraordinary and unprecedented set of circumstances. This has required some tough budget cutbacks, including savings in the Federal Government's New Car Plan, so that funds can be redirected into the rebuilding of roads, bridges, rail lines and public facilities in flood ravaged communities.
"But the Government understands the need for certainty and the long lead times for investment in the highly competitive automotive industry. The Prime Minister and Minister Carr have confirmed to the automotive industry that all other parts of the New Car Plan ... will be retained.
"The New Car Plan helped see Australia through the worst economic crisis faced by manufacturing since the Great Depression and the changes will help ensure its future. What we are making is a commitment to all other elements of the New Car Plan."
In 2007 the Federal Government pledged $5.4 billion of financial support to the local car making industry and its suppliers through to 2020 -- and called it the New Car Plan. In 2008 this figure grew to $6.2 billion with the addition of the Green Car Innovation Fund -- and the name changed to New Car Plan for a Greener Future.
The extra GCIF funding, however, was short-lived. It was cut twice in the lead-up to the 2010 Federal election -- $200 million was cut to the supplier base and a further $200 million was cut to vehicle manufacturers. Following the disasters in January, the remaining GCIF funds were frozen -- but funding already pledged was secure.
Holden received $149 million from the GCIF and another $30 million from the South Australian government to go towards its new Cruze small car, which will be made at its Elizabeth factory from next month.
Ford received $42 million from the GCIF and an undisclosed amount from the Victorian Government to go towards a diesel Ford Territory and the four-cylinder Falcon.
Toyota received $35 million from the GCIF and an undisclosed amount from the Victorian government to go towards the hybrid Camry program.
The Victorian government chose not to reveal exact funding figures on these occasions but the amount is well into the millions in both cases.
All this sounds like a vast sum of money -- and it is -- but it is no different to what other governments in other parts of the world do to attract car makers.
Dozens of states in North America offer incentives in the form of lower tax rates or rebates in return for setting up factories. That's why brands such as Toyota, Nissan, Hyundai, Kia, BMW, Mercedes-Benz and Volkswagen (among others) have established green-field car-making facilities there. Indeed, one of the reasons the three North American domestic makers (General Motors, Ford and Chrysler) have struggled to compete on their home turf is because of the high level of assistance offered to foreign companies to establish car factories -- and create thousands of jobs.
Government assistance is happening on Australia's doorstep, too. The Thailand government has been offering incentives to foreign makers to establish factories there for more than a decade. And guess what? Honda, Toyota, Nissan, Ford and Mazda now make cars or utes there in globally significant numbers.
Why is it that other countries want to save or create jobs in the car industry -- but a broad section of Australians don't? Is it because they don't realise the ramifications of not having a car industry?
Clearly most Australians aren't living in fear of losing their jobs. More than 1 million people treated themselves to a new car last year -- the second-best on record -- although 90 per cent of the cars were imported.
Some senior executives in Australia who represent imported car brands question the level of taxpayer assistance offered to our three local carmakers. Some of these executives offer these opinions to journalists off the record, as background, so they can still mingle guilt-free with their friends from local car makers at motor shows.
Others, such as Suzuki Australia general manager Tony Devers, are happier to put their name to their views. Devers told the Carsales Network last year that Australia should switch its efforts to building more relevant cars -- or become a hub for research and engineering.
By his estimation "Ford would make more money importing cars from Thailand than making them in Australia". He would know. Suzuki is about to join other Japanese brands and establish a car factory there in a couple of years -- thanks to assistance from the Thai government.
Incidentally, the Carsales Network has since been told that Ford Australia contributes 40 per cent of total profit to Ford's Asia-Pacific operations -- and local carmaking is a "significant proportion" of that.
Devers also calculated that $6.2 billion of Australian government funding roughly equates to $100,000 per car industry employee -- if the figure of 60,000 workers spread across the three carmakers and their suppliers is accurate.
"Nobody's really done the sums, have they?" Devers said, suggesting that the government was blinded by "an overriding idealism that we need [a manufacturing] industry".
But spread over the 13 years of the program, the $6.2 billion equates to $7700 per person per year. There's a fair chance the Federal Government will get more than that back from each worker in income tax -- and GST from goods and services they purchase.
What is also conveniently overlooked by detractors is the estimated $16 billion the car industry (that is, vehicle manufacturers and suppliers) will invest as a result of government contributions. That $16 billion does not include wages, incidentally.
In the outline for the GCIF in 2008 the government said: "Manufacturing is the mainstay of families and the lifeblood of communities around the country. We can't have a balanced economy without it -- and we can't have a just society without it either.
"The automotive industry makes a huge contribution -- both direct and indirect -- to Australian output, jobs, exports, innovation and skills. Its latent significance to national security -- as a storehouse of industrial know-how and capability -- is immeasurable."
In 2007-08, the report said, Australia exported $5.6 billion worth of vehicles and vehicle components. That's more than Australia earned from exports of wool, wheat, beef or wine.
The government acknowledged the shift in demand to more economical vehicles. "The world is changing and Australia's automotive industry must change with it. Our choices are simple -- our industry must either adapt to the new environment, or face extinction," the report said bluntly.
"Adaptation will require significant investment in new technologies. [And] we will only get that investment if people believe the industry has a future and are certain of the Australian Government's commitment."
It is interesting to revisit the original GCIF document in the wake of having the rug pulled a fortnight ago. The reality is that the same principles -- and threats -- still apply to the car industry today as they did in 2008.
While the three local carmakers have calmed down now after being reassured there will be no further cuts, they had a tense lead-up to last Wednesday's meeting, especially after the Federal Opposition threatened to make further cuts to car industry funding if it wins power at the next election.
Presumably to make sure the Federal Government's commitment to the car industry remained on public record, the FCAI issuing a statement that said in part:
"It was good to meet with the Prime Minister and have the opportunity to reinforce the commitments the Government had previously made to the industry as well as highlight the need for certainty in the future," FCAI exec McKellar said.
"Public private partnerships underpin the industry in every automotive manufacturing economy and this co-investment has developed an industry that directly employs more than 50,000 people with the capability to design and engineer world-class vehicles for Australia and global markets.
"The vehicle manufacturers and component suppliers can be reassured by the confirmation from the Australian Government that no further policy changes will be made."
The talk of funding cuts struck at a critical time for the three local carmakers because each is vulnerable for a different reason.
In the next six months Ford and Holden will decide what type of cars they will build from 2016 onwards -- and whether or not they will be built here.
Ford Australia built just 45,000 vehicles at its Broadmeadows factory last year -- including fewer than 30,000 Falcons -- and the parent company in Detroit has announced there will be no more one-off vehicles such as the Falcon and Territory for individual countries.
This means that Ford Australia must make a business case to Detroit as to why future Falcon- and Territory-type vehicles should be made in low numbers in Australia, when their equivalent US models will be made more cost-effectively in the hundreds of thousands in North American factories -- and could be imported with a zero tariff under the free trade agreement Australia has with the USA.
In January this year, Holden pledged its intentions to continue making the Commodore locally well into the 2020s -- but it would not be viable without government assistance.
Holden says its factory -- and any car factory for that matter -- must produce at least 100,000 vehicles per year to turn a profit. But last year its Adelaide plant built fewer than 60,000 vehicles.
Holden's parent company General Motors could potentially shift Commodore production to one of its under-utilised plants in North America, or elsewhere in the Asia-Pacific region. Holden already assembles the Caprice in China, while the majority of its small cars come from factories in Korea and Thailand.
Toyota built in excess of 120,000 vehicles (most of which were exported) last year but, despite producing by far the most number of vehicles, it is possibly the most vulnerable of the three local makers. The strong Australian currency has meant that Toyota Australia has been losing money on every Camry it exports.
In the next 12 months Toyota will make a decision on whether or not to build the 2017 Camry in Australia -- or import an identical vehicle from its Thailand factory with a zero tariff because of a free trade agreement Australia has with that country.
All this explains why the FCAI issued the following warning after the GCIF was axed: "The decision to abolish the Green Car Innovation Fund comes as an unwelcome surprise and it sends an adverse signal to international investors responsible for future investment in the Australian industry.
"We urge the Government not to renege on the clear policy framework which it has implemented to secure new investment and jobs in the industry. We urge the Government to re-think this decision.
"The program was originally put in place in response to the 2008 review of the automotive industry, after extensive consultation with the industry and other stakeholders and it is a key element of the Government's New Car Plan."
The boss of Jaguar and Land Rover in Australia, David Blackhall, has a unique perspective on the dilemma facing Australian car manufacturers.
Before he took charge of the prestige brands locally seven years ago, he spent the majority of his automotive career -- more than 22 years -- with Ford Australia and has an intimate understanding of the local car industry. He was also formerly the marketing director of Ford in Taiwan.
As of January 1, he is responsible for Jaguar and Land Rover in the Asia-Pacific region and has just returned from a whistle-stop tour of his new territory. He is also on the FCAI executive committee.
"I think it's a worrying time for the three local manufacturers," he told the Carsales Network.
"[The industry] is in an extreme state of flux right now and there'll be some very important decisions made in the next six to 12 months about where companies place investment bets. That's not good news if you're looking at the big picture in Australia."
Blackhall is concerned that the lack of warning about the axing of the Green Car Fund will spook the global bosses of Ford, General Motors and Toyota.
"The most unnerving thing [about the Federal Government's funding cuts] is the without-warning change," he said.
"What [car] companies need is stability and certainty, to enable them to plan for the future. When you have something in place, you make big investment decisions based on that being in place -- but when that changes overnight, that changes the situation dramatically.
"If you're the boss of a car company sitting in Detroit or Japan and you're looking at the sudden without-warning move the Australian government has made, that does not instill you with confidence about making investment decisions here. [This is] especially [the case] when other governments -- some of them neighbouring countries to Australia -- are bending over backwards to encourage vehicle manufacturing to create jobs in those countries."
Blackhall said a reduction in -- or removal of -- financial support "alters the economic sums significantly".
"I'm not saying Julia Gillard could do anything else in the wake of floods and cyclones but when the policy changes overnight it changes the business case dramatically."
He said one of the biggest hurdles facing the local car industry was non-tariff trade barriers.
"Australia has signed Free Trade Agreements with some of its neighbours, and that's all well and good, but there hasn't been enough attention paid to the non-tariff barriers."
In Thailand, some cars attract a registration fee that is up to 200 per cent of the cost of the car because of the vehicle's engine size -- and Australian cars happen to fall into that category. In Singapore there is a modest import tariff, but the registration fee is equivalent to 100 per cent of the cost of the car.
"Successive Australian governments have talked about the level playing field and Australia's commitment to free trade... But what I've been surprised by in my first few weeks of looking at the Asian markets are the non-tariff barriers in countries such as Korea, Thailand and Malaysia," Blackhall said.
"There can be administrative barriers and bureaucratic processes that frankly are sometimes more difficult to negotiate that even figuring out what the price should be.
"A lot of effort goes into creating the perception of a level playing field by various governments around the region, but there ought to be an opportunity for those governments to sit down together and say ‘hey, are we really serious about this?'.
"I think Australia's attitude has been trying to do the right thing and what's best for world trade. No-one wants to go back to the 1930s when import tariffs were 60 and 70 per cent. But Australia has definitely led the field [in terms of free trade] and there are other countries with more nationalistic views that perhaps aren't coming along quite as easily."
He said a return to higher import tariffs was not the answer in Australia.
"Raising our import tariffs would be the wrong thing to do. Instead, real energy needs to be applied to have dialogue in ASEAN and other forums."
But even with non-tariff barriers removed, would Australian-made cars find wide appeal in our neighbouring countries? Small cars and body-on-frame utilities (such as the Toyota HiLux) dominate Asian-Pacific car sales. Large cars are even out of vogue in North America, as buyers shift to compact vehicles and SUVs.
Thailand is the world's capital for building body-on-frame (workhorse) utilities; they build them better and cheaper than any other country in the world so it is unlikely Australian factories could compete with them.
As Ford and Holden have proved, building small cars in Australia is not viable without government assistance. Ford halted plans to build the new Focus at Broadmeadows at the 11th hour because of a lack of government funding at the time. Holden got the Cruze hatch over the line because of government funding.
The inconvenient truth is that all these factors combine to create a grim outlook for local carmakers -- unless there is taxpayer support.
Basically, Australia needs to decide if it wants a car manufacturing industry -- and get behind it, or get out of the business.
Before you decide, just ask yourself what the 60,000 displaced workers are going to do and who is going to pay for their employment benefits, because there aren't that many research and engineering jobs to go around if the shop shuts on manufacturing.
Indeed, 60,000 jobless people would likely leave a black hole far greater than any cyclone or flood damage. Now you see them, now you don't.
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