Articles by Alistair Kennedy

In the course of our recent trip to Thailand and China we were able to visit three different factories, the General Motors plant at Rayong in the south-east of Thailand, the Cummins engine facility in Beijing and the SAIC Maxus factory near Shanghai.  Each gave some insight into the changing direction of automotive manufacture that is swinging inexorably to the east, as well as the western influence that’s helping guide the expansion.   Our first stop was at the GM Thailand factory at Rayong which is the source of the all-new Holden Colorado ute that’s due here shortly, as well as the Colorado 7 SUV that will follow early in 2013. The jewel in the crown of the plant is a brand new diesel engine facility, housed alongside the general assembly line, where the two Duramax engines used in the Colorado are built.   Our guide for the tour of the Rayong plant, which has a production capacity of 130,000 units per annum, was GM Thailand’s Vice President Powertrain, David Clarkson, one of a number of Americans at the forefront of the development and operation of the factory. Using the latest in leading-edge computer and laser technology the powerplant facility was described by Mr Clarkson as the benchmark for all General Motors engine plants.   Currently in production are the two Duramax engines that power the all-new Colorado ute we reported on recently, with work already underway on the next upgrade due in 2014. Both the 2.5 and 2.8 engines are built from the same engine block, currently imported but set to be built locally from later this year. The 236 parts in the engine come from 92 plants from 17 countries around the world but with a steadily growing proportion being sourced from within Thailand.   Moving on to China we were able to visit the factory of the Beijing Foton Cummins Engine Company (BFCEC), a 50-50 joint venture between the US-based Cummins Engine Company and Foton, the fourth largest of China’s burgeoning number of auto manufacturers with a focus on trucks and light commercial vehicles.   Although it’s not a well-known name within the Australian car industry Cummins is one of the world’s oldest (formed in 1919), largest and most-respected manufacturers of diesel engines.   Cummins engines power a large range of trucks including such well-know brands as Freightliner, Iveco, Kenworth, Mack, Volvo and Western Star. They are also on their way to Australia under the bonnets of Chinese JAC light-duty trucks.   As with the GM Thailand engine operations, the BFCEC factory is run by a combination of local and imported personnel, in this case including a couple of thirty-something English executives in Quality Director, Simon Crowhurst, and Chief Engineer, Steve Saxby, who guided us through the factory.   The blend of east and west again seemed to work well despite the obvious language problems.   Like the other facilities that we’ve seen in the new China, the Cummins factory is modern and well-designed. Two turbo-diesel engines, the ISF2.8 and ISF3.8 with capacities of 2.8 and 3.8 litres, are currently being produced, for use in small trucks, light commercial vans, pickups and SUVs.   Unlike many Chinese operations, about 80 per cent of the Cummins engines are being built for the export market with the engines ranging from Euro 3 to Euro 5 emission levels depending upon destination country requirements.   Automotive production in both Thailand and China are expanding dramatically, not just in numbers but also in quality. Overseas companies such as Honda, Nissan and General Motors have been building vehicles in Thailand for some time and their resilience and efficiency was shown by the remarkable recovery at the Honda factory following the disastrous 2011 floods.   In China a series of joint ventures between local and international companies, the only way that the latter can operate there, are steadily improving the quality of that country’s vehicles with the eventual plan to begin large-scale export programs.  

For several years there has been an expectation that there will be a flood of imported vehicles entering Australia from the booming Chinese automotive industry. To date only three brands have arrived -- Chery, Great Wall and Geely (the last of those only in WA). But they will be joined by a fourth later this year when the Maxus V80 light commercial van and mini bus range are released. Maxus has had something of a turbulent history. Originally developed by the Leyland DAF Vehicle (LDV) Group in partnership with Korean carmaker, Daewoo, the first models were built at the Daewoo plant in Lublin, Poland and sold as the LDV Maxus. Maxus is a subsidiary of China's largest automobile manufacturer, SAIC, and was purchased from Leyland DAF Vehicles (LDV) following that company's bankruptcy during the Global Financial Crisis. A large proportion of the LDV plant and equipment was shipped from Birmingham, England to SAIC’s factory at Wuxi, about 170 km west of Shanghai where production of the Maxus V80 range began in September 2011. We were able to tour the Maxus factory and came away impressed by the modern facility and the apparent efficiency of operations, albeit still running well short of its maximum capacity of 150,000 vehicles a year. The majority of vehicles are light commercial vans, many of which are converted within the factory into special purpose vehicles such as school buses, ambulances, police vans and VIP transport. Maxus V80 is produced with two wheelbase options (short and long), three roof heights (low, mid and high) and as either a van or mini bus ranging from nine to 16 seats. Of these we can expect to see the SWB low roof, LWB low roof and LWB high roof variant come to Australia with around 80 percent in van format and 20 percent as mini buses. Cab chassis variants are being developed and are due late in 2012. They are also expected to be sold in Australia. All Maxus V80 models are powered by a 2.5-litre VM Motori common-rail turbo-diesel engine with maximum power of either 80 or 100 kW, and 330 Nm of torque – Australia will get the 100 kW version. The Italian-designed engines, which meet Euro4 emission standards, are built in China under licence. An upgraded engine, to meet Euro5, is being developed. Fuel consumption will vary according to model but SAIC provided a “comprehensive fuel consumption” figure of around 9.2 litres per 100 km. More precise numbers will be provided when the V80 arrives in Australia. Only five- or six-speed manual transmissions are offered to the Chinese domestic market, however the Australian importer, Sydney-based White Motor Company is currently in negotiations with Aisin-Warner for the supply of automatic transmissions, a must for the Australian market. We were able to get hold of a right-hand drive version of the Maxus V80 and take it for a short, tightly-supervised drive within the confines of the factory. With eight occupants on board it pulled strongly and the dash-mounted manual gear lever was light and smooth in its actions. Legroom from the driver’s seat was tight and the centrally-mounted instrument panel won’t be to everyone’s taste. Fit and finish could not be faulted. Of more value were a couple of transfers, one in a 15-seat standard mini bus, the other a 180 km motorway trip in the 9-seat Deluxe model. Most of the latter trip, with seven on board, was spent cruising at the sensible motorway speed limit of 120 km/h (Australian authorities please note). Although Maxus V80 is effectively European it will be viewed by potential Australian buyers as being Chinese and so it will need to be priced as such to have any chance of gaining a significant market share. We were hoping to get some indicative pricing from WMC but to date all we’ve been able to glean is that prices will be “below the Europeans but above the Asians". Given that two of the latter category of vans, Hyundai iLoad and Toyota HiAce, share around 60 percent of the market between them it’s a risky strategy to ask buyers to pay more than them for what will largely be an unknown brand. Certainly at the SWB/low roof level where the models align. WMC also plan to import a second range of Chinese light commercial vans and mini buses, this time from JAC whose first load of light-duty trucks are due in Australia very soon. The JAC range, including the Refine and Sunray models, is due to arrive in Australia early in 2013 and will be priced significantly lower than those from Maxus. As part of the GFC series of fire sales, SAIC also acquired the iconic British marques, MG and Rover, new models from both of which were displayed at the recent 2012 Beijing Motor Show. Apart from the name they bear no resemblance to the cars that we’re familiar with but, if they do come to Australia, those badges may be enough to attract buyers. The new Maxus V80 is due to arrive in Australia around October this year.  

The decision by Chrysler Australia’s parent company, Fiat, to have Chrysler Australia take over the importation of Alfa Romeo and Fiat vehicles will no doubt be greeted enthusiastically.  Although it’s the largest carmaker in Italy and the ninth largest in the world, Fiat, is currently only a bit player on the Australian market with two diverse models in its range, the cute retro-styled Fiat 500 and the Ducato van.  Similarly the local Alfa Romeo range has been whittled down to just two models, MiTo and Giulietta. The two Italian brands will join the existing three American brands, Chrysler, Jeep and Dodge in the portfolio operated by Chrysler Group Australia.  It’s too early for details of the expected model expansion to be known in full. During our recent visit to China we were able to sit down with Chrysler’s Australian CEO, Clyde Campbell, and speculate on some of the possibilities.  One model that is almost certain to come here is the Fiat 500L, a five-door hatchback/wagon that’s related to the 500 only by name. The 500L is significantly larger in all dimensions than the 500 and the 500C cabriolet. Launched with a big splash at the 2012 Geneva Motor Show, the Fiat 500L is due for release in Europe ate this year.  The expected demise of Dodge is likely to see the Fiat Freemont replace the Dodge Journey as the group’s people mover. The mid-sized Fiat Linea sedan is another that will come under consideration.  Alfistis will have their fingers crossed that the 4C sports car shown as concept at the 2011 Geneva Motor Show will find its way downunder when it goes into production in 2013.   There’s even some speculation that Lancia, another member of the Fiat group, and off the Australian scene since the mid-1980s, could return.   There are currently 39 Fiat and/or Alfa Romeo dealerships in Australia while Chrysler Group has 72. Mr Campbell explained that there will be a complete evaluation of the new combined dealer network to examine the best method of integrating the various brands.  The outgoing Fiat/Alfa Romeo distributor, Ateco Automotive Group, has played an important part in expanding the choice of Australian buyers. Ateco was responsible for reviving Alfa Romeo (in 1997) and Fiat (in 2006) when it looked as though the two iconic marques had been lost forever from this country.  All three of these brands were successfully re-established and subsequently taken over by their respective factory operations in a similar manner to the new Chrysler arrangement.  Most recently Ateco has become the first company to import Chinese vehicles to Australia, in the form of Chery and Great Wall. With over 200 motor vehicle manufacturers currently operating in China it seems likely that Ateco is eyeing off further expansion in this region.  Commenting on the change, Ateco governor, Neville Crichton, said: “As we say goodbye to Alfa Romeo and Fiat we will be welcoming into our company new brands and businesses that will benefit from the unique skills and talents we have to offer.” Ateco Automotive will also continue to distribute Fiat’s two upmarket Italian brands, Ferrari and Maserati, as well as the very French Citroen vehicles and the recently acquired British sportscar maker Lotus.  

With China now dominating global automotive sales it was no surprise that virtually every one of the world’s major brands was on display at the 2012 Beijing Auto Show. While the Beijing show may not yet have the prestige of others such as Paris/Frankfurt, Geneva or New York, it is certainly comparable in terms of size, product volume and glitz. Some 120 new models were displayed at Beijing compared with 84 at last year’s Frankfurt show. In the tradition of the European shows of old, almost every one of the 1100-plus cars at Beijing had a glamorous model draped across it. Of the 120 new releases at the show, 36 came from foreign carmakers and 84 from Chinese  manufacturers. These numbers reflect the direction that the Beijing show took with the emphasis well and truly on the huge domestic market where most of the dramatic growth has occurred. First off the mark was the new Fiat Viaggio, the first locally-produced model to emerge from a joint venture between Fiat and the Guangzhou Automobile Group (GAC). A small-medium sedan, it’s based on the same platform as the Alfa Romeo Giulietta, but is currently only built in left-hand drive format and unlikely at this stage to be converted to RHD for the Australian market. One model from the Chrysler Group that will be sold in Australia is the new Chrysler 300C. The version on display had a less imposing grille than the one that dominated the previous model and saw it dubbed ‘the gangster car’. Chrysler Australia chief, Clyde Campbell, told us that there were three options for the front of the new 300C but that no decision on the Australian variants has yet been made. Mr Campbell also suggested that the lowered specced Chrysler 300 could be added to the range. Volkswagen has a huge presence in China through its alliance with the country’s largest carmaker, SAIC. Indeed one of the eight large halls used for the show was occupied entirely by VW and related brands such as Audi, Bentley, Lamborghini, Skoda and Porsche. Porsche showed its second generation Cayenne GTS with a more powerful engine, stronger chassis and sportier features. Pre-orders are already being taken in Australia with deliveries beginning in September. Another debutant at the show was the Range Rover Evoque Special Edition With Victoria Beckham. Only 200 units of the Posh limited edition will be built and likely to be quickly snapped up by the status-conscious, upwardly mobile Chinese executive class. A new variant of the Subaru Liberty that will be sold only in China and Australia was unveiled. As yet un-named it will feature 18-inch wheels and a ride height 60 mm higher than the standard models and aimed mainly at non-urban buyers. Of the two Chinese brands that are currently on sale in Australia, Chery showed that its range was much wider than the small cars on sale here, with a total of 20 models on display including three world premieres and two concept cars. Likewise, Great Wall, in Australia only with price-busting utes and SUVs had a stand crammed with vehicles of all shapes and sizes. No word yet on when or if these two brands will expand in Australia.  

On the eve of the 2012 Beijing Motor Show, Holden announced details of an important new agreement whereby a Melbourne-based Holden engineering team will be responsible for the design and development of at least two new cars for the Chinese market. Given the spectacular growth in the Chinese automobile industry, that saw it produce over 18 million motor vehicles in 2011, more than double that of any other country, the new agreement is not only a major opportunity for Holden to become involved in the China boom but also a recognition of the respect by which Australian car designers and engineers are held internationally. General Motors is an important player in China, selling more that 2.5-million vehicles last year through its various joint venture partnerships including both international brands such as Buick, Cadillacs, Chevrolet and Opel as well as a number of domestic brands The new long-term agreement announced by GM Holden chief Mike Devereux to Holden employees, coincided with the news that Toyota had cut its local staff by 350 and once again stressed the importance of an outward perspective for the Australian automotive industry. Mr Devereaux said: “It gives the Holden workforce a great sense of pride to work on global vehicle programs like this and to see Australian design, engineering and manufacturing expertise exported around the world.” The agreement is with two of General Motor’s eleven Chinese joint venture partners, Shanghai General Motors (SGM) and the Pan Asia Technical Automotive Center (PATAC). Both are 50-50 partnerships between GM and China’s largest automobile manufacturer Shanghai Automotive Industry Corp (SAIC). Although there have been previous cases where Holden, SGM and PATAC have worked together this is the first long-term and most significant project. Based at Holden’s Technical Centre in Port Melbourne, the Holden team will be responsible for the design, development, testing and validation of components of the vehicles which will be tailored for the Chinese domestic market. Holden remains tight-lipped on details of the type or size of the initial two new vehicles that its team will be working on, only stating that they will be built on GM global platforms and effectively ruling out any chance of them being built in Australia. Ford Australia has also been involved in similar projects. The Ford Ranger and Mazda BT-50 had almost all their engineering work done by large engineering teams in Melbourne. Though it’s not economically possible to build these pickups in Australia they are being manufactured in several overseas factories and sold in over 100 countries. Ford Australia also did the engineering work for a number of cars sold specifically in India. The shape of the Australian automotive industry is changing .Though the manufacturing side of the business is suffering here, the engineering work being done by GM Holden and Ford Australia is highly respected globally.  

Holden’s all-new Colorado, just launched onto the international market, will come to Australia within the next few months.Unlike some vehicles which are spruiked as being ‘all-new’ when they are really just upgrades, there no doubt about the claim in Colorado’s case. Whereas the first generation Holden Colorado – and its Rodeo predecessor – was built by Holden’s former General Motors affiliate, Isuzu, the new model comes from the biggest name in the GM stable, Chevrolet.While Chevrolet is based in the USA the new Colorado is very much a world car having been designed and developed by groups in Thailand and Brazil. Subsequent development work, including 2.5 million kilometres of road testing, took place in eight other countries, including Australia.The final product is being built at factories in Brazil and Thailand, with Australian-specced models being sourced from Thailand. The new pickup will be sold in over 60 countries as the Chevrolet Colorado with Australia the only country in the world where it will be rebadged.Interestingly, some of the first Thai-built Colorados virtually went straight from the production line and into action to assist in flood relief operations in southern Thailand late last year. To ensure that Ford/Mazda with their Ranger and BT-50 and don’t steal a march on them, Holden has taken the unusual step of releasing prices well in advance of the vehicle’s release.Chev fans will instantly recognise the company’s characteristic billet grille at the front of the Colorado. The only change to the Chevrolet that we’ve just driven at the vehicle’s international launch in Thailand is badging with the circular Holden lion emblem replacing the iconic Chevrolet bow-tie badge.We’ve yet to see how the Holden badge is placed but we understand it will be embedded within the horizontal bar that splits the two segment of the grille. While some of the most recent ute models have chosen to go with softer, smoother lines, GM has stuck with a more chiselled look that gives Colorado a tough, pragmatic appearance that’s likely to appeal to the pickup purist.After steadily dwindling demand for petrol-powered utilities (just seven per cent in the past twelve months) Holden is now offering nothing but diesel engines in the new Colorado. The two diesels engines are all-new Duramax four-cylinder common-rail units with capacities of 2.5 and 2.8 litres, both are built at the GM Thailand factory at Rayong in southern Thailand.The smaller engine generates 110 kW of power and 350 Nm of torque while the 2.8-litre gets 132 kW and 440 Nm (manual) or 470 Nm (automatic). Transmission options are five-speed manual and six-speed automatic.We were able to test both engines when we joined journalists from 15 countries at the Colorado’s international launch at Chiang Rai in Thailand. Mid-sized pickups are hugely popular in Thailand we saw huge numbers of them on the roads, often with large loads in the cargo tray, including many passengers.Part of the two-day drive program covered around 25 kilometres of steep, narrow tracks, many badly rutted by the torrential rains that hit Thailand last year. So difficult were the conditions that the segment took nearly two hours to traverse. All 24 of the 4WD Colorados that started the course emerged from the torture test unscathed.We were able to test each engine both on the rugged middle section and on the bitumen segments on either side. The chassis is reassuringly strong with good ground clearance and the Colorado didn’t scrape the ground at any stage. Towing capacity with the 2.5-litre engine is 3000 kg with the 2.8-litre able to pull 3500 kg.The 2012 Holden Colorado will be offered with a large number of choices between cab-chassis and utility bodies; 2WD and 4WD; single-cab, extended-cab and dual-cab; four specification levels (DX, LX, LT and LTZ) as well as the aforementioned engine and transmissions.Payload will range from 1.0 to 1.4 tonnes depending upon model. Chevrolet has adopted the marketing slogan of “Haul Anything and Go Anywhere” for the new Colorado and, based on our test, it’s not an unreasonable claim.Safety equipment in Australian imports will include front passenger and side airbags, ABS brakes with electronic brakeforce distribution, brake assist and cornering brake control, electronic stability program and traction control.

Toyota has added a special limited edition Altitude version of its Prado with more than $10,000 of added features at a cost of just over $5000. The limited edition Toyota Prado Altitude will only be in production until the end of April 2012. The current (fourth generation, but third in Australia) Prado has been on