Articles by Joshua Dowling

Joshua Dowling
National Motoring Editor

Joshua Dowling was formerly the National Motoring Editor of News Corp Australia. An automotive expert, Dowling has decades of experience as a motoring journalist, where he specialises in industry news.

Detroit on the road to recovery as police chief urges citizens to buy a gun
By Joshua Dowling · 11 Jan 2015
Detroit is a shadow of its former glory. The recovery has started after exiting bankruptcy last month, but derelict buildings remain and the city has the highest crime rate in the US.Downtown Detroit looks like the back lot of a movie studio. Among the occupied buildings, skyscrapers built in the halcyon days are now completely gutted. You can see straight through them to the next block.On the fringes of the city, family homes sit alongside abandoned buildings.There are glimpses of redevelopment as Motor City emerged from bankruptcy last month, but the green shoots are still few and far between.Detroit's population of 700,000 today is less than half what it was in happier times, the beginning of the automotive boom in the 1960s.In the middle of winter, where temperatures dip to an average of minus 6 degrees Celsius, knee-deep snow covers the footpaths and shopfronts. Only half the city's street lights are actually working.The Detroit police chief, James Craig, dubbed by local media as "Hollywood" for his enthusiasm to get in front of a camera, has been encouraging Detroiters for a year now to buy a gun to defend themselves. Chances are, he admits, police may not be able to respond in time because they are working with skeleton staff numbers.The birthplace of the US car industry has been through hell and backWhile the number of people murdered in Detroit dropped to between 316 and 333 in 2013 (the latest FBI and Detroit Police figures vary) it amounts to almost one homicide per day.Depending on which figures you use, Detroit's homicide rate equated to 47.5 per 100,000 residents in 2013, down from 55 the year before, but it still has the highest murder rate of any US city at 10 times the national average.There were a further 1161 non-fatal shootings in the city over the same period.Which could explain why the number of residents with a concealed weapon has increased, and several intruders and would-be robbers have been shot or killed by their victims in the past year."I'm not an advocate for violence, but I am an advocate for, when faced with a dangerous situation – one that offers or presents an imminent threat to life or a threat of great bodily harm – that one protect themselves," the Detroit police chief told media last January, before his appearance on the cover of the National Rifle Association's magazine in June 2014."A law abiding citizen who has a (permit for a concealed weapon)...they're not going to tell an armed suspect 'stop for a moment, I need to dial 911 so I can get a police officer here'. Suspects know that if they make a poor decision to engage in a violent crime they could encounter an armed citizen."Police figures show there were almost 13,000 burglaries in approximately 250,000 dwellings in Detroit last year, giving locals a 1 in 20 chance of finding an intruder in their homes.It's perhaps no coincidence that, in Detroit and its surrounding areas, there is one permit for a concealed pistol for every 21 households, figures from 2014 show.The birthplace of the US car industry (Henry Ford put the world on wheels in 1908 by making motoring affordable for the masses, but the automobile was invented in Germany in 1886) has been through hell and back over the past five years.The Bush administration injected $25 billion to prop up General Motors and Chrysler in late 2008, and when Barrack Obama was elected in 2009 he eventually stumped up a further $57 billion once it became clear two of the Big Three US car makers were on the brink of collapse, and could bring the rest of the manufacturing industry down with them.Ford didn't take one cent of bailout funds. Although they did not foresee the severity of the credit crunch, Ford's finance executives began to see credit drying up about two years before the Global Financial Crisis took hold, and so in late 2006 decided to borrow as much money as they could to completely restructure the company.William Clay Ford hired former Boeing executive Alan Mulally to turn the company around, and persuaded the board and the Ford family to back the bold plan.Without realising what a deft move it would turn out to be, Ford shut 17 factories, sacked 51,000 workers and sold off Ford's loss-making European brands Jaguar, Land Rover, Volvo and Aston Martin just months before the GFC hit in late 2008.Ford had put its buildings, design patents, and the rights to the famous blue oval badge up as collateral – and borrowed a staggering $23.6 billion to invest in a complete overhaul of the company and its entire line-up of cars.At the time GM and Chrysler executives privately scoffed at Ford's huge loan, but two years later their ailing companies would need to be bailed out by US taxpayers.While Detroit's car makers were enduring their own battles, the city around them was crumbling. In July 2013 Detroit was declared bankrupt with $18 billion in debt. It is the largest city in US history to go broke, and to ever get so far in the red.As people lost jobs and defaulted on mortgage repayments, houses could be bought for as little as $500, or the balance of the property tax debt, typically about $7000.This created a new dilemma: an increase in the number of homeless. One of the downsides of buying a $500 house – as many people found out the hard way – was evicting whoever was living in it. At least half the houses sold in distress were occupied.In Detroit you were seeing the big companies in big troubleTo raise some cash the city even considered selling off the Detroit Institute of Arts' famous collection, with paintings by Vincent van Gogh and Brueghel. But that was avoided after pension funds and healthcare were cut, and foundations and private individuals made significant donations.Even the car company executives took a pay cut.The then boss of General Motors, Rick Wagoner, and the then boss of Chrysler, Robert Nardelli, agreed to earn a wage of $1 per year. Conveniently, this figure did not include bonuses.It also didn't help that both executives flew to US government bailout hearings in late 2008 on private jets – as the city of Detroit and more than one-third of its citizens were broke or living on the poverty line.But as of last month the city of Detroit is able to make a fresh start, having emerged from bankruptcy after shedding almost $7 billion of its $18 billion debt.Michael Simcoe, formerly Holden's chief designer and now head of styling for General Motors in the Asia-Pacific region, saw the crisis up close.Simcoe was based in Detroit from 2004 to 2010 (as executive director of North American exterior design and global architecture) and lived through the worst of the fallout, and is now witnessing its recovery."Things were bad at work but they were worse in the neighbourhood," said Simcoe. "Many of the parents that my kids went to school with lost their jobs, and a lot of houses were left vacant, building had stopped, the world stopped for a while."Simcoe had lived through a previous US recession during an earlier posting in Detroit from 1990 to 1992, but he described that one as merely "a dip"."Nothing in my lifetime has ever come close to being as pervasive as this," said Simcoe.He said most Australians have no idea just how much trouble the rest of the world was in during the peak of the GFC. Australia survived largely unscathed thanks to the mining boom and a $60 billion future fund held by the Federal Government."I don't think anyone in Australia recognised how deep the whole thing was globally," said Simcoe. "Personally, a little bit of the hardship that Detroit and other countries experienced might have been a nice lesson for Australia. It feels like a very privileged place at the moment. That's what I noticed most when I moved back to Australia (in 2011), it didn't feel like anyone had any idea how lucky they were."Simcoe said the social and economic impact in the US "was happening all over the country but in Detroit you were seeing the big companies in big trouble".Although the GFC was not Detroit's fault, it was one of the most vulnerable industries to be impacted once it started to take hold in 2009.The recovery is only just beginningFor a record eight years in a row, from 1999 to 2006, Americans bought an average of 17.3 million new cars annually. The industry was riding a wave and was blind to the danger around the corner.Vehicle sales slumped to 10.6 million in 2010, which hit the car makers with a double whammy. Not only were they in crippling debt, they weren't raising enough cash through vehicle sales because of the market slowdown.But last year, US car sales returned to their highest levels since 2006 (with 16.5 million deliveries). With the bankruptcy behind it as of last month, Detroit has taken a turn for the better – although the recovery is only just beginning.Detroit plans to demolish more than 20,000 vacant houses in the coming months. This year, as the city tries to recover $709 million owed by householders, another 62,000 dwellings will be up for auction if owners can't pay their property tax. A move which could leave up to 100,000 people – or 1 in 7 – homeless.Detroit officials will have to report to a US government financial review board – which has the power to veto spending and borrowing – for the next 10 years to prevent the city slipping back into bankruptcy.But $1.4 billion has already been allocated for redevelopment and infrastructure."You can see clear progress in the restoration of downtown, the entrepreneurs who are flocking here, the massive building projects getting underway and the work being done to improve education, neighbourhoods and city services," Mary Barra, chief executive of General Motors, told Detroit media.The improvements can even be seen from Australia, says Simcoe."Each time I come back here I see it getting better and better," said Simcoe, in Detroit ahead of next week's annual auto show. "I know over the years it's been the butt of jokes for journalists coming to the Detroit motor show. And it's not at its best when you're coming here in the middle of winter. But if you spend any time downtown now you'll recognise how different it is. There are a lot more businesses opening up here, there's more entertainment, people are buying property, there's an obvious commitment to the city."Beyond the engineering and design talent that the car industry brings, Simcoe says Detroit is "a very creative place, not just in music, but in artistic and other creative ways. It shouldn't be put down the way it is."US president Barrack Obama visited Detroit this week to visit car factories and tout the success of the bailout packages. All but $9.3 billion of the $82 billion spent to save the car industry has since been paid back. It was only expecting to recover about half the loaned amount.Detroit is on a path to survive"The auto industry has led a resurgence of manufacturing in America," President Obama told the Detroit News. "It's been a good deal for America and it saved about a million jobs."The Washington DC Bureau chief for the Detroit News, David Shepardson, who interviewed President Obama this week, told News Corp Australia: "The biggest issue remains: convincing families that it is safe enough and the schools are good enough to stay in Detroit or move to Detroit".He said younger people are moving to Detroit in large numbers to live in loft apartments and work in jobs outside the auto industry (just 6 per cent of workers are involved in manufacturing as most car factories now are out of the city and even out of state)."But the key is getting families to return and find ways to address blighted neighbourhoods," he said.Despite the doom and gloom, Shepardson believes Detroit is "on a path to survive"."New restaurants and offices have moved downtown with new restaurants," he says. "But the jury is still out: can the city begin to sustainably grow, fix the schools, get the streetlights back on, get police, fire and ambulance response time back to where it should be, become a functioning city?"
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Automatic buyers stung by special deals
By Joshua Dowling · 09 Jan 2015
Researching hot deals on the cars in this week's light hatch comparison we were gobsmacked to discover two reputable brands having a lend of us on the prices of automatic hatchbacks.This month on the respective websites, Honda has a $16,990 drive-away deal for the Jazz and Toyota promotes $15,990 drive-away for its Yaris.But tick the box for one with an automatic - as more than 75 per cent of us do in this category - and the price jumps by more than the usual premium. The self-shifting Jazz normally adds $2000, the Yaris $1600, according to the manufacturer price lists.There is nothing illegal about this but that it doesn't make it rightBut during this month's 'special', automatic transmission adds $2650 and $2800 respectively. Ouch. There is nothing illegal about this but that it doesn't make it right. In coming weeks we will canvass the response of consumer groups and the corporate watchdog to this new practice.Is it fair to lure consumers to showrooms with a bargain manual when in fact the most popular choice is one with automatic?Is it reasonable for consumers to expect the price premium for an automatic not to increase when it is on special?On the flip side, other brands are doing mega deals and not charging a dollar more for automatic.Suzuki and Hyundai both have 'free auto' deals, with savings of between $2500 and $5000. At least those deals are more transparent than others.
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Winners and losers of 2014
By Joshua Dowling · 09 Jan 2015
After a couple of record breaking years, the car industry stalled in 2014. Sales of locally built cars continued to slide as we move closer to the shuttering of the local industry.On the flip side, the SUV continues its relentless progress, accounting for one in three new vehicles sold.Well-heeled buyers treated themselves to a record number of luxury cars. Official figures from the Federal Chamber of Automotive Industries show 1,113,224 new cars were reported as sold in 2014 - down 2 per cent on the previous year's record.Here's our list of last year's winners and losers.Starting at $19,990 plus on-road costs - the same price as in 1994 - the Corolla was Australia's top-seller for the second year in a row, followed closely by the Mazda3.The Toyota HiLux workhorse was next, one of three utes in the Top 10. Hyundai's i30 small car was fourth and the new Holden Commodore finished fifth despite a sales slide in the last six months.Some importers sharpened their pencils or added more features to heap pressure on the locals . The results were dramatic for some - sales of Honda's Jazz, Subaru's Impreza and Mitusbishi's ASX grew by roughly a third, with the Jeep Grand Cherokee up 28.2 per cent and the Nissan X-Trail up 17.4 per cent.Longstanding import nations Japan, Thailand and South Korea went off the boil yet sales from Europe and the United States grew strongly.SUV sales hit a new high, for the first time accounting for more than 30 per cent of the new-car market.Since 2007, annual SUV sales have grown by more than 150,000 vehicles. "The increase in SUV purchases is a reflection of the versatility these vehicles provide and the increasing range available in the market," says Federal Chamber of Automotive Industries boss Tony Weber.The Mazda CX-5 became only the second SUV in history to make the top 10. Ford's Territory cracked it once, in 2005.As mainstream brands went backwards, most luxury marques posted significant increases. Of the big three, Audi performed the strongest, up 20 per cent, while Mercedes-Benz rallied by 15.8 per cent and BMW was up 10.7 per cent. At the top end, Porsche was up by almost 50 per cent and Rolls Royce nearly 150 per cent."The prices of luxury cars have come down," Weber says, "and they have a wider array of vehicles in different segments, so they're starting to drift down into areas where they weren't historically."Australia is now in its 23rd year of economic growth...it makes a difference to people's standard of living and that's reflected in the car fleet."They're not sexy - and they've been largely left behind by a wave of seven-seat SUVs.A comeback of sorts was due almost entirely to one model, the Honda Odyssey. It's been slammed by some reviewers for its frumpy looks and less than inspiring road manners, but sales of the bigger, more practical model are up by more than 150 per cent.Toyota's Tarago enjoyed a small resurgence and the new Citroen Picasso boosted numbers.Production of locally made vehicles hit a 61-year low with just 100,468 Holdens, Fords and Toyotas sold. In 1953, the tally was 99,133 vehicles, according to the Australian Bureau of Statistics. The bureau also provides the peak figure for the Australian car manufacturing industry, 473,045 vehicles in 1976.In 1960, more than 90 per cent of cars sold in Australia were made locally. In 2014, more than 90 per cent of cars were imported.Eight of the top 10 brands had sales slides, Hyundai and Subaru bucking the trend.The changing of the guard at the top of the charts continued, with Hyundai and Mazda closing the gap on No.2 Holden.Meanwhile, Ford posted its worst sales performance in almost 50 years and its 10th consecutive year of decline.Toyota was the market leader for a record 12th year in a row. It wasn't all good news - the Japanese giant's sales were down for the third consecutive year, 203,498 deliveries, down from a peak of 238,983 in 2008.Once tipped as the next big thing, pint-sized city runabouts hit the skids. Sales of micro cars - including the Mitsubishi Mirage, Holden Barina Spark and Nissan Micra - dropped by 30 per cent. Meanwhile diesel passenger car sales fell by 17 per cent and sales of hybrid cars to private buyers fell by 30 per cent.Australians bought 100,000 fewer passenger cars than in 2007. Eight years ago passenger cars accounted for more than 60 per cent of the market; over the past two years they have slipped below 50 per cent.Mid-sized and large sedans continue to feel the brunt of the switch to SUVs - last year for the first time baby softroaders outstripped mid-sized sedans. Falcon sales were down by more than 40 per cent. Camry sales dropped by 11 per cent.The end of the mining boom and drought in some states have stalled Australia's work utes after years of strong growth. NSW was the only market to grow in 2014, with WA, Qld and Tasmania bearing the brunt of the slowdown. Notable exceptions are Ford's Ranger and the Isuzu D-Max. More sad news for locals: Falcon ute sales dipped by 40 per cent and Holden utes by 6 per cent.Top 10 brands in 2014Toyota 203,501 -- down 5.2 per centHolden 106,092 -- down 5.3 per centMazda 100,704 -- down 2.4 per centHyundai 100,011 -- up 3.1 per centFord 79,703 -- down 8.6 per centMitsubishi 68,637 -- down 4.0 per centNissan 66,025 -- down 14.0 per centVolkswagen 54,801 -- down 0.2 per centSubaru 40,502 -- up 0.8 per centHonda 32,998 -- down 15.9 per centTop 10 cars in 2014Toyota Corolla 43,735 -- up 0.5 per centMazda3 43,313 -- up 2.9 per centToyota HiLux 38,126 -- down 4.5 per centHyundai i30 31,505 -- up 3.0 per centHolden Commodore 30,203 -- up 8.8 per centFord Ranger 26,619 -- up 22.3 per centMitsubishi Triton 24,256 -- down 1.0 per centToyota Camry -- 22,044 down 11.3 per centMazda CX-5 21,571 -- up 7.2 per centVolkswagen Golf 19,545 -- up 10.6 per cent
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2017 Chevrolet Corvette disguised as Holden ute | spy shots
By Joshua Dowling · 09 Jan 2015
US magazine Car And Driver has landed what will likely go down as the scoop of the year -- just eight days into 2015.The magazine’s spy photographer Chris Doane has caught on camera what appears to be a mid-engined Corvette test mule wearing a Holden Commodore ute body as a disguise.Car And Driver does not say how or where the photos were taken but it appears to be from a drone inside a General Motors test track given the height the shots were taken, and the fact that there are no licence plates on the vehicle.The magazine says it captured 82 seconds worth of images before the engineers testing the vehicle covered it up.The magazine is adamant this is a pointer to the next generation 2017 Corvette, said to be a mid-engined design, with the engine mounted behind the seats (like a Ferrari or Lamborghini) rather than under the bonnet as it is currently.The contraption could also be a flagship model to sit above the Corvette, to rival the Ford GT supercar which is rumoured to break cover at next week’s Detroit motor show.Whatever it is, we just hope that General Motors stands by its promise to make all future cars available in right-hand-drive -- and then put it on a ship to Australia.Whatever it is, we just hope that General Motors stands by its promise to make all future cars available in right-hand-drive -- and then put it on a ship to Australia.At the Detroit show two years ago the then boss of the company Dan Akerson told News Corp Australia, in the media scrum after the latest model was unveiled, that the 2015 Corvette would be coming to Australia “soon”.But less than 24 hours later, his next in command, Tim Lee, said that was not true and the Corvette was not coming to Australia.Mr Lee told Australian reporters at the Detroit motor show the next day: “I have no idea what said but we have no plan to put a right-hand-drive under that bonnet. The Corvette is a Chevrolet, it’s not a Holden, it never will be, next question."When Mr Lee was asked how two senior executives with intimate knowledge of the company could make such a faux-pas, he said: “I recognise what my boss said, I recognise what said, I am telling you as the operating guy in charge there is no plan. I respect my boss, I love my boss. But I think he was giving you an exhortation.”When pressed again on how two of his senior colleagues could get such key facts wrong during a media interview, he said during the roundtable discussion: “We can spend the entire 20 minutes talking about this. This is a non-story from my point of view. You can write what you want to write, I really don’t give a shit. But it is not in the mainstream plan.”Mr Lee then repeated his earlier comments: “Currently there is no engineering execution, there is no plan. If the CEO said tomorrow that he wants us to do that it would take us years. Don’t go back and sell that story.”Here’s hoping this mid-engined monster, whatever it is, stands a better chance of coming to Australia. With or without the Holden Commodore ute body.Read the full story at Car And Driver
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Audi S1 vs Mini Cooper S
By Joshua Dowling · 09 Jan 2015
Performance and luxury come in pint-sized packages these days. How does Audi's smallest hot hatch compare to the new Mini Cooper S?
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Small Cars 2015 review
By Joshua Dowling · 08 Jan 2015
Joshua Dowling road tests and reviews the Honda Jazz VTi, Mazda2 Neo, Suzuki Swift GL and Toyota Yaris Ascent, with specs, fuel consumption and verdict.
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Ford Australia sales shocker | slumps to 48-year low
By Joshua Dowling · 08 Jan 2015
Australia’s oldest surviving car maker Ford has posted its worst sales in almost half a century -- even though the new-car market enjoyed its second-highest year on record -- historical figures unearthed by News Corp have found. The last time Ford sold fewer vehicles than it did in 2014 was in 1966, the same year Australia introduced decimal currency and Robert Menzies handed the Prime Minister’s office to Harold Holt. Popular songs of the time included These Boots Are Made For Walking, by Nancy Sinatra, and the hit movie The Sound Of Music starring Julie Andrews was released that year. RELATED: Ford throws down a $200 test drive challenge MORE: Holden to overtake Toyota by 2020 Ford sold 79,703 vehicles in 2014 according to figures from the Federal Chamber of Automotive Industries, compared to 83,197 in 1967 and 68,520 in 1966, according to figures from Australian Automotive Intelligence which has archived Bureau of Statistics data. By comparison, Holden’s 2014 result was its lowest tally in 21 years and it is on track to be overtaken by Mazda and Hyundai. Ford and Holden dominated sales for more than 50 years before Toyota began its 12-year winning streak. The historic Ford and Holden rivalry battle will resume in 2015 -- but it will likely be for fourth and fifth place on the sales charts. Established in 1925, Ford is the oldest of Australia’s three remaining car manufacturers but it was the first of the trio to announce factory closures. Its Broadmeadows car assembly line and Geelong engine factory will be shuttered in October 2016. The sales slump is significant because the figure covers every model in the Ford range, not just the Falcon sedan and Territory SUV which are about to become extinct. Ford sold more than 100,000 vehicles every year from 1970 to 2008, but has been in a 10-year sales slide since 2005. The 2014 tally is less than half Ford’s peak of 30 years ago: 170,811 sales in 1985. The homegrown Falcon last led the new-car market in 1995 with 81,300 sales, a record for the model. But the Holden Commodore took the lead in 1996 and began a record 15-year dominance before it was knocked off the top spot by the Mazda3, the first imported car to lead the Australian market since before World War I, according to Pedr Davis, 85, a veteran automotive journalist, historian and author. Last year the former family favourite, the Falcon, didn’t even make it into the Top 20 sellers and was overtaken by imports such as the Volkswagen Golf and Mercedes-Benz C Class, a scenario that would have been scoffed at just a few years ago. A highlight for the struggling brand, however, was that Ford significantly closed the gap in sales between the top-selling Toyota HiLux ute and its Ranger pick-up, with sales up 22 per cent in a market down by 2 per cent. Ford has a raft of new models around the corner -- including the first factory-built right-hand-drive Mustang in 50 years -- and plans to introduce 20 new vehicles by 2020, doubling the range of 10 vehicles it sells today. But executives stopped short of saying Ford would return to market leadership and admitted it could take another two years before sales turn around.“This will be the biggest model revitalisation in our history,” Ford Australia boss Bob Graziano told media at a model preview in December. When asked when Ford would begin to post a sales increase, Ford’s Australia’s head of sales and marketing Graeme Whickman said: “When you look at the quantum of vehicles we have coming … you would expect (sales growth) in the next 18 to 24 months” In recent months Ford has boldly tackled market leader Toyota head-on with “attack” advertisements that pitch Fords directly against its rivals. It is a common tactic in the US but rarely used in Australia. In one advertisement Ford offers customers $200 if they buy a rival vehicle after testing a Ford; in another advertisement a Ford utility tows two Toyota HiLuxes.While Toyota is a sales leader, we don’t necessarily see them as a product leader.When asked how effective Ford’s attack ads against Toyota were, Mr Whickman said: “It’s in an early stage, we’re not trying to come across as arrogant or pump our chest. I wouldn’t call it arrogant, I’d say it’s challenging. We’re trying to come across as optimistic and confident at the same time.” Mr Whickman said the Ford advertisements were not designed to get customers off-side or offend loyal followers of rival brands. “You’ll notice we don’t talk about the other products in a derogatory tone … what we’re saying is ‘take a look at our product, you may not have in the past, give us a chance to consider us’.” Unlike Holden, which boldly claimed last year it would overtake Toyota by 2020, Ford says it has no plans to topple the market leader. “Success isn’t overtaking Toyota,” said Mr Whickman. “We’re not going to measure ourselves in that way. While Toyota is a sales leader, we don’t necessarily see them as a product leader.”
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Why Free Trade deals will make some cars cheaper and not others
By Joshua Dowling · 06 Jan 2015
The import tariff on Japanese and South Korean cars will be completely removed from January 15 - bringing potential price cuts to almost half of all cars imported into Australia.However, the industry has warned buyers not to expect massive savings - cuts will be most likely between $250 and $1000 - because the 5 per cent tariff was on the landed cost of the car, not the higher recommended retail price.Minister for Trade and Investment Andrew Robb claims there will be savings of up to $7630 on some Toyotas as 'an example of the real impact that families will see from these agreements ... for Toyota's biggest-selling models".Don't get too excited. Toyota's biggest-selling model, the Corolla, drops by between $500 and $1050.Don't get too excited. Toyota's biggest-selling model, the Corolla, drops by between $500 and $1050.The $7630 applies to the Prado Kakadu, which drops from $92,120 to $84,490. But only part of the price cut is due to the 5 per cent duty reduction.A Toyota spokesman says 'in some cases we've passed on more than the duty saving".Japanese brands Mazda and Subaru also trimmed prices but don't expect similar savings on South Korean-made vehicles sold by Holden, Kia or Hyundai, as all three have resisted moves to follow suit.Kia spokesman Kevin Hepworth says the company will scrap price increases it had planned for January and look at adding features. 'As new models arrive they may have additional equipment," he says.Hyundai will introduce extra equipment but the currency gap between the Korean won and the yen will make it more difficult to introduce significant savings. So far, Holden has also resisted price cuts on the Korean-made Captiva, Barina, Cruze wagon and Malibu.The Japanese Free Trade Agreement due to come into effect on January 15 follows the deal with South Korea from December 15.The deals are estimated to affect about 460,000 cars this year;. Toyota alone expects the changes will make about 100,000 of its cars cheaper.'Traditionally Toyota would have implemented the price reductions at the same time as the cuts to import duty start to apply," says Toyota sales and marketing chief Tony Cramb.'Instead, with the support of our dealers, Toyota has brought forward these price cuts to the start of the year." Three low-volume cars also will gain extra equipment.Some cars with Japanese and South Korean badges will have no new savings because they are made in countries such as Thailand (which signed free trade agreements with Australia in 2005), the US (agreements signed in 2010) or India (which has no agreement with Australia).Price cuts are expected on the Japanese-built Toyota Yaris, Prius and Corolla hatch, among other models. But prices will remain steady for the Corolla sedan and HiLux built from Thailand and the Kluger SUV manufactured in the US because of the existing deals.Mazda has trimmed prices on all Mazda3, Mazda6, CX-5 and CX-9 vehicles, from $268 to $963 on vehicles which range in price from $20,000 to $50,000. But its cheapest car, the Mazda2, and the BT-50 ute will not get price cuts as they come from Thailand.Likewise most Hondas sold in Australia today come from Thailand. Meanwhile Subaru cut prices of some models by between $500 and $1000. The car industry has warned buyers that exchange rate fluctuations have had a bigger impact on prices than the tariff.'The Australian dollar has moved by 60 per cent over the past 10 years but car prices have remained relatively stable," says one industry insider.'Car makers ride the currency wave, plus you have the impact of the devalued Japanese yen. That has a bigger impact on (pricing) than the removal of the tariff." 
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Australian car industry slams the brakes
By Joshua Dowling · 06 Jan 2015
Production of locally-made vehicles hit a 61-year low last year as new-car sales experienced their biggest slowdown since the Global Financial Crisis in 2009 and the natural disasters of 2011 -- as Australians treated themselves to a record number of imports, SUVs and luxury cars. Official figures from the Federal Chamber of Automotive Industries show 1,113,224 new cars were reported as sold in 2014 -- down 2 per cent compared with the previous year’s record 1,136,227 deliveries.Eight of the Top 10 brands were down -- only Hyundai and Subaru posted gains -- as most luxury marques posted significant sales increases. “The prices of luxury cars have come down … and they have a wider array of vehicles in different segments, so they’re starting to drift down into areas where they weren’t historically,” said the chief executive of the Federal Chamber of Automotive Industries, Tony Weber. “Australia is now in its 23rd year of economic growth … it makes a a difference to people’s standard of living and that’s reflected in the car fleet,” said Mr Weber. It was the seventh time in the past eight years Australians have bought more than 1 million cars in a calendar year, and the third year in a row it has topped the 1.1 million mark. However record-low interest rates and car affordability at a 38-year high were not enough to drive sales growth for the mainstream brands -- even though the strong Australian dollar wound back prices of popular models by 20 years. The Toyota Corolla -- starting at $19,990 plus on-road costs, the same price it was in 1994 -- was Australia’s top-selling car for the second year in a row ahead of the Mazda3 as sales of our historical favourites, the Holden Commodore and Ford Falcon, hit a new rock bottom.Just 100,468 locally-made Holdens, Fords and Toyotas were sold in 2014; the last time the tally was this low was in 1953 when 99,133 vehicles were made in Australia.Just 100,468 locally-made Holdens, Fords and Toyotas were sold in 2014; the last time the tally was this low was in 1953 when 99,133 vehicles were made in Australia, according to a historical Manufacturing Industries report prepared by the Australian Bureau of Statistics.The same report shows, at its peak, the Australian car manufacturing industry produced 473,045 vehicles in 1976. Between 1968 and 1985 the annual average number of vehicles produced locally exceeded 400,000.  However, the Australian car manufacturing industry has been in free fall since the most recent peak of 344,000 vehicles were produced locally just seven years ago, in 2007. In 1960, more than 90 per cent of cars sold in Australia were made locally. In 2005, locally made vehicles accounted for one in four (25 per cent) of all new cars sold. In 2014, less than one in 10 cars (or 9 per cent) was built locally. Falcon sales fell to a shockingly low 6349 deliveries in 2014, less than one-third of the Falcon’s first full year in production on the same Broadmeadows assembly line in 1960 when 26,499 cars were made. The Ford Falcon, last the top-seller in 1995, is now well outside the Top 20, overtaken by the likes of the Volkswagen Golf and a raft of other imports. Ford as a brand had a shocker, posting its worst sales in more than 23 years (as far as digital records go back ) and the 10th year in a row in decline. The Holden Commodore posted its second lowest result on record (30,203 deliveries) but still managed to finish in fifth place even though it has been in a sales slide for the past six months in a row and Holden posted its lowest result in 21 years. Sales of the Holden Cruze, which is made alongside the Commodore at the Holden factory in Elizabeth, are barely half their peak of 33,784 deliveries in 2011. The locally-made Toyota Camry also found market conditions tough, with sales down 11 per cent to 22,044 deliveries -- despite drive-away deals at $26,990, about $8000 off the full retail price -- although it has remained Australia’s best selling medium-size sedan for 21 years. Despite the factory slowdowns Australia’s three remaining car manufacturers say they will keep their factories open until their planned shutdown dates: October 2016 for Ford and late 2017 for Holden and Toyota. Toyota is in the final stages of upgrading its Altona factory to introduce the updated Camry by the middle of this year, two-thirds of which will be exported to the Middle East until the closure. Toyota was the market leader for a record 12th year in a row – ahead of Mazda -- and 18 years in total. But it wasn’t all good news for the Japanese giant; Toyota sales were down for the third year in a row, to 203,498 deliveries, a significant drop from its peak of 238,983 new cars in 2008.Toyota says it will bounce back in 2015 with 10 new models over the next 12 months, including updates to the Camry, Prius and an all-new HiLux. Hyundai eclipsed the 100,000 mark for the first time and Mercedes-Benz came within 1000 sales of bumping off Honda and making it into the Top 10. Indeed, at least three brands -- Jeep, Kia and Mercedes-Benz -- came close to pushing into the Top 10 sellers list. NSW was the only state or territory to post a sales gain in a down market (up 1.5 per cent) and accounted for almost a third of the nation’s new vehicle sales (356,174). Utility vehicles continued to climb the sales ladder, boosted by mining and building sectors and the arrival of more car-like workhorses that serve as family cars on weekends.The Toyota HiLux was Australia’s top-selling pick-up for the 36th year in a row, although the Ford Ranger closed the gap to second place in the ute class ahead of the Mitsubishi Triton.The Toyota HiLux was Australia’s top-selling pick-up for the 36th year in a row, although the Ford Ranger closed the gap to second place in the ute class ahead of the Mitsubishi Triton. All three vehicles made it into the Top 10.Australia’s favourite SUV is a city-friendly faux-wheel-drive called the Mazda CX-5, which signifies another change in buyer tastes: we no longer need heavy duty four-wheel-drives to enjoy the great outdoors. SUV sales hit an all-time high in 2014 and for the first time accounted for more than 30 per cent of the new-car market. “The increase in SUV purchases is a reflection of the versatility these vehicles provide and the increasing range available in the market,” said Mr Weber. Last year Australians bought 100,000 fewer passenger cars than they did in the peak year of 2007 -- and yet over the same period SUV sales have grown by more than 150,000 vehicles. Eight years ago passenger cars accounted for more than 60 per cent of the market; over the past two years they have slipped below 50 per cent. Industry experts believe the shift towards SUVs will continue in 2015 and forecast a similar sales result of 1.1 million vehicles. Mazda and Toyota have just announced price adjustments ahead of the Free Trade Agreement with Japan which comes into force on January 15, 2015. However, rather than discount prices, both car makers have indicated they will add equipment. The removal of the 5 per cent tariff will not equate to a 5 per cent reduction in the RRP; the 5 per cent cut applies to the landed cost of the car and will typically translate to a $500 saving -- or $500 of extra equipment -- on a $20,000 car, according to industry insiders. Cars sourced from South Korea landed have also been exempt from a 5 per cent tariff from December 15, 2014 -- but Holden (which sources most models from South Korea), Hyundai and Kia are yet to announce FTA-related price cuts or equipment changes. Top 10 cars in 2014Toyota Corolla 43,735 -- up 0.5 per centMazda3 43,313 -- up 2.9 per centToyota HiLux 38,126 -- down 4.5 per centHyundai i30 31,505 -- up 3.0 per centHolden Commodore 30,203 -- up 8.8 per centFord Ranger 26,619 -- up 22.3 per centMitsubishi Triton 24,256 -- down 1.0 per centToyota Camry -- 22,044 down 11.3 per centMazda CX-5 21,571 -- up 7.2 per centVolkswagen Golf 19,545 -- up 10.6 per cent Top 10 brands in 2014Toyota 203,501 -- down 5.2 per centHolden 106,092 -- down 5.3 per centMazda 100,704 -- down 2.4 per centHyundai 100,011 -- up 3.1 per centFord 79,703 -- down 8.6 per centMitsubishi 68,637 -- down 4.0 per centNissan 66,025 -- down 14.0 per centVolkswagen 54,801 -- down 0.2 per centSubaru 40,502 -- up 0.8 per centHonda 32,998 -- down 15.9 per cent WinnersAlfa Romeo -- up 5.3 per centAston Martin -- up 8.1 per centAudi -- up 20.1 per centBentley -- up 11.6 per centBMW -- up 10.7 per centCitroen -- up 10.8 per centFerrari -- up 6.6 per centFiat -- up 49.4 per centHyundai -- up 3.1 per centIsuzu -- up 63 per centJaguar -- up 5.6 per centJeep -- up 37.2 per centLand Rover -- up 21.0 per centLexus -- up 1.2 per centMaserati -- up 199 per centMercedes-Benz -- up 15.8 per centMini -- up 1.4 per centPorsche -- up 47.6 per centRenault -- up 42.7 per centRolls-Royce -- up 143 per centSkoda -- up 8.4 per centSubaru -- up 0.8 per cent LosersFord -- down 8.6 per centGreat Wall -- down 56.8 per centHolden -- down 5.3 per centHonda -- down 15.9 per centKia -- down 6.0 per centLamborghini -- down 42.6 per centLotus -- down 14.1 per centMazda -- down 2.4 per centMitsubishi -- down 4.0 per centNissan -- down 14.0 per centPeugeot -- down 0.4 per centSuzuki -- down 21.1 per centToyota -- down 5.2 per centVolkswagen -- down 0.2 per centVolvo -- down 9.3 per cent Australia versus the world: a generation of decline1960: 284,992 of 310,519 = 91.7 per cent locally made cars2005: 248,912 of 988,269 = 25 per cent locally made cars2006: 201,623 of 962,666 = 20.9 per cent locally made cars2007: 200,485 of 1,049,982 = 19 per cent locally made cars2008: 171,432 of 1,012,164 = 16.9 per cent locally made cars2009: 147,680 of 937,328 = 15.7 per cent locally made cars2010: 146,314 of 1,035,574 = 14.1 per cent locally made cars2011: 141,939 of 1,008,437 = 14.0 per cent locally made cars2012: 139,796 of 1,112,032 = 12.5 per cent locally made cars2013: 118,510 of 1,136,227 = 10.4 per cent locally made cars2014:  100,468 of 1,113,224 = 9.0 per cent locally made cars Source: Federal Chamber of Automotive Industries
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Alternative holiday safety tips
By Joshua Dowling · 05 Jan 2015
We know what you're thinking: not another road safety message. But this one is different. You might not have heard about these tips - and they might just get you through the holiday traffic headaches in one piece.Contrary to what many people believe, it is legal to drive barefoot. In fact road safety experts would rather you drove barefoot than in thongs or high heels, which can slip off the pedals. Ideally, however, drive in comfortable shoes with grippy soles.Avoid a sugar crash - don't eat or drink junk. You may get a burst of energy from a sugar high but it's short lived and you will feel more tired soon after. Stick to foods with a low GI (unsalted almonds are good to snack on) and drink plenty of water. Avoid coffee and other caffeine drinks for the same reason. Sorry to be a party-pooper.Up to 20 per cent of drink drivers are busted between 6am and midday - it takes longer than most people estimate for alcohol to clear the system. So don't have a bender, get a ride home, then get busted the next day collecting the car because you're still over 0.05. Give yourself ample time.The RSPCA and wildlife advocates agree it is better to hit an animal than swerve and crash, worse still into an oncoming car. It's hard to go against your instincts in an emergency but if an animal jumps out in front of you, hit the brakes by all means, but whatever you do don't swerve.If you have an iPhone, add emergency contact details and any allergies to the 'Medical ID' section of the built-in Health app. Emergency services can access your next of kin, blood type and allergies even if your phone is locked (providing you enable access to the details in the locked screen).There is a temptation to turn the aircon off when the weather is cold and wet - only to have the inside of the windscreen fog up, especially with a car load of people. Aircon takes the extra moisture out of the air in the cabin and will clear the windscreen in no time.Men constantly risk running out of fuel seeking to find out "how low you can go". Women start looking for a servo with a quarter of a tank remaining. When it's time to refuel, most modern cars have a discreet arrow near the fuel gauge so you know which side the fuel flap is on. Handy if you're driving someone else's car.Increasingly, cars are being driven at night without headlights because the instrument displays are so bright. Formerly, the speedometer wouldn't be illuminated unless the headlights were on. Better still, drive with your headlights on during the day to increase your chances of being seen, especially on shaded stretches of road.Even if you own a petrol car (as three out of four of us do), rising diesel sales means there's more of it spilt near petrol pumps. Because diesel is more oily than unleaded you can end up with diesel grime on the soles of your shoes, and later slip off the pedals. Grab a paper towel and stand on that, or find a pump without gunk.Less than 1.4mm of tread depth is illegal and dangerous. "A lot of people measure the middle of the tyre, but if the edges are worn, it's deemed unroadworthy. You may also need a wheel alignment to prevent the new tyre from wearing unevenly," says George Chalazia from Bob Jane T-Marts in Granville. A space-saver spare can go a maximum of 150km. "We get a lot of people coming in this time of year with bald space-saver tyres. That's highly dangerous," says Darren Ward from Jax Tyres in Kensington.A spare isn't much use without air. Don't change a flat on the side of a busy road or freeway. Drive slowly (walking pace) to a safe area away from traffic. On a freeway, try to reverse the car behind a safety barrier.The roof, boot or parcel shelf especially. It's probably best not to store anything heavy on the shelf behind the back seat. Keep any pets in a cage on the rear passenger floor. Most cars can handle 60kg-100kg tops on the roof. A greater load could damage the roof rails or raise the centre of gravity, affecting your car's dynamics.If you own a box trailer or a caravan do us all a favour - get your axles and bearings checked, regreased or replaced. If it has been sitting in the weather for a year, there is a good chance the axles are rusty and the bearings seized. That's why you see so many trailers on the side of the road with a wheel astray on the holidays.Don't veer wildly across lanes or try to reverse to the exit ramp. Rather than causing havoc, go around the block, head back from the next roundabout or pull into a side road and start again. Breathe in, breathe out, try again.Try being courteous to other drivers and don't push in to a merging lane. In New Zealand, drivers can be fined for cutting in. Try being considerate to others on the road this summer. It might just catch on.
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