Melbourne motor show axed, Sydney under a cloud

Australians might be treating themselves to a record number of new cars but we no longer want to pay to go and look at them.

The Melbourne motor show has been axed for the first time since World War II -- and next year’s Sydney motor show is hanging in the balance. The news comes less than three months before Melbourne was due to host its first motor show in two years after alternating with Sydney since 2009.

The two shows had joined forces and agreed to alternate annually in an attempt to combat falling attendances and rising exhibitor costs.

“We have made the decision not to proceed based on the consensus view of the auto industry to focus limited marketing budgets on specific activities rather than an industry motor show”, Russ Tyrie, event director of the Australian International Motorshow, told News Limited this morning.

Motor shows have suffered globally as new-car shoppers do most of their research online before they buy.

Car makers have also become increasingly concerned about the rising cost of floorspace in exhibition centres, with many opting to use the money in more targeted marketing campaigns.

“The exhibitor costs were getting out of hand and there are better and more effective ways to spend the money,” said one car company executive who wished to remain anonymous.

The going rate for floorspace, the elaborate stands and the people to work a motor show for up to 10 days was close to $2 million for each of the big brands, said one insider.

In 2008 Mercedes-Benz rented the Mount Panorama race circuit for an entire week for less than it would cost to exhibit at the Sydney show. It invited VIP guests for track test drives and says it sold more cars than it would have done at the motor show.

Another year, the absence of sportscar maker Porsche prompted the headline: “Motor show without Porsche is like a pub with no beer”.

At last year’s Sydney show Ford ambushed rival car makers by building a mega outdoor site designed to intercept customers before they made it to the front door. Ford had planned to do the same at the Melbourne motor show in June.

At its peak in 2001, when the new Holden Monaro was unveiled, the Sydney motor show had 320,000 visitors through the turnstiles. Last year just 135,500 people attended, the second lowest result in the past decade.

By comparison, the Melbourne motor show saw 160,000 visitors in 2011 -- but this was well down from the peak of 257,000 visitors in 2004.

Meanwhile both the Melbourne and Sydney motor shows were struggling to attract car makers -- even after they began to alternate annually.

The last Melbourne and Sydney motor shows attracted just 27 car brands each -- less than half of those on sale. News Limited undersands only 20 brands had signed up for this year’s Melbourne show.

The Sydney motor show was due to move to the Homebush Bay Olympic site in August 2014 while the Darling Harbour Exhibition Centre closes for renovations. But those plans are now under review.

“Decisions on future shows will be made by the committee based on market research and exploring opportunities as to how this event can best meet the needs of the industry and the public,” Tyries said.

The Melbourne motor show had been running since 1925 but was not held for three years during the Great Depression (1930 to 1932) and for eight years during and after World War II (1941 to 1948).

Melbourne motor show attendance numbers:
Peak: 257,000 (2004)
2008: 240,000 (last time Sydney and Melbourne shows are held the same year)
2009: 193,755
2010: (no event, joint venture with Sydney)
2011: 160,000
2012: (no event, joint venture with Sydney)

Sydney motor show attendance numbers:
Peak: 320,000 (2001)
2008: 137,000 (the last time Sydney and Melbourne shows were held the same year)
2009: (no event, joint venture with Melbourne)
2010: 124,000
2011: (no event, joint venture with Melbourne)
2012: 135,050

This reporter is on Twitter: @JoshuaDowling