Articles by Joshua Dowling

Toyota Australia to close Sydney office, keep Melbourne once factory shutsMore than 300 white-collar workers at Toyota Australia's Sydney head office in Caringbah will be out of a job or be forced to move to Melbourne once the Camry factory in Victoria closes in 2017.Toyota Australia announced today it will consolidate its two head offices into one once the Altona car assembly line on the western outskirts of Melbourne is shut down.A statement from the company at 4:15pm on Wednesday said: "(Toyota) will consolidate its corporate functions to Melbourne, impacting its operations currently located in Sydney".Toyota Australia expects its workforce will be cut from 3900 people to about 1300. Included in the job losses are 2500 workers associated with manufacturing.Toyota's head office will continue to be based in Port Melbourne but the Altona manufacturing site will be leveled and rebuilt for new functions, most likely a parts warehouse and offices for staff training.Toyota Australia President Dave Buttner said the decisions were based on an "extensive evaluation process"."This year has been extremely tough for everyone at Toyota Australia," Mr Buttner said in a media statement."We understand that it is a difficult time for many of our employees and we are committed to supporting them during the transition period."These changes will provide us with the best opportunity to have a strong and sustainable base for the next 50 years and beyond."The decision to close the Sydney office will improve business efficiency and reduce operating costs, the company said."The intention is that the relocation will be aligned to the end of manufacturing and we will encourage our Sydney-based employees to move to Melbourne," said Mr Buttner.White-collar workers at Toyota regional offices that support dealer networks in New South Wales, Victoria and Tasmania, and national service functions, will move from Port Melbourne to Altona."Our goal is to make these changes as seamless as possible," Mr Buttner said.Toyota Australia declined to answer any questions over the announcement and did not make executives available for interviews.Meanwhile, Holden's total workforce today stands at 3400, but once the 1700 factory jobs go that will leave Holden over-staffed with approximately 1200 white-collar workers and its total could also fall below 500 once its factories close.By comparison, Mazda, the third-biggest-selling car brand in Australia, has 250 office staff and sells about half as many cars as Toyota and almost as many as Holden.Hyundai has less than 200 staff and sells almost as many vehicles as Mazda.Holden says it will retain at least 140 designers who will work remotely on global General Motors vehicles, while Ford will employ about 1200 designers and engineers to help develop foreign Ford vehicles.Toyota Australia total workforce: 3900Factory: 2500White-collar: 1400Total number of cars sold in 2013: 215,000Number of cars sold per head office employee in 2013: 153Average number of cars sold per dealership in 2013: 1000Holden Australia total workforce: 3400Factory: 1700Engineering and design: 500Head office staff: 1200Total number of cars sold in 2013: 112,000Number of cars sold per head office employee in 2013: 93Average number of cars sold per dealership in 2013: 480Ford Australia total workforce: 2450Factory: 850Engineering and design: 1200Head office staff: 400Total number of cars sold in 2013: 87,000Number of cars sold per head office employee in 2013: 217.5Average number of cars sold per dealership in 2013: 440Mazda Australia head office workforce: 250Factory: N/A (import only brand)Head office workers: 250Total number of cars sold in 2013: 103,000Number of cars sold per head office employee in 2013: 410Average number of cars sold per dealership in 2013: 825Hyundai Australia head office workforce: 200Factory: N/A (import only brand)Head office workers: 200Total number of cars sold in 2013: 97,000Number of cars sold per head office employee in 2013: 485Average number of cars sold per dealership in 2013: 605

A perfect storm is brewing for small-car bargains.The Toyota Corolla and Mazda3 are battling for top-seller status in the last few weeks of 2014 at the same time as dealers are trying to clear this year’s stock.Pressure will be on prices as the top-two sellers come under the discount knife – and other brands will also be forced to slash prices to compete.The reigning champion, the Toyota Corolla, overtook the Mazda3 in the year-to-date tally in July by just 21 sales – but the pair have swapped the monthly sales lead three times in the past four months.Official sales figures due to be released midday Wednesday are expected to show the Mazda3 narrowly outsold the Toyota Corolla in November (3500 versus 3265 deliveries).But the Corolla still has the edge when the year-to-date tally is counted (40,190 versus 39,510 deliveries).If the Toyota Corolla becomes our top-seller it will be only the second time as Australia’s favourite car after the Mazda3 had back to back wins in the two years prior, having ended the Holden Commodore’s 15-year winning streak.The preliminary figures show the downturn in new-car sales continued in November with seven of the Top 10 brand posting sales declines.It will be the 10th month this year there has been a decline -- by 4.8 per cent compared with the same month last year, to 92,232 deliveries.This is the longest market slowdown since the Global Financial Crisis.However, despite weakening sales the new-car tally has once again eclipsed the 1 million mark, with 1,016,421 deliveries year-to-date, down 2.2 per cent compared with the first eleven months last year.Market leader Toyota was down 11.6 per cent and Holden was down by a staggering 25 per cent, when compared with the same month last year.Holden’s dramatic fall from grace was enough to elevate South Korean car maker Hyundai to second place for the second month in a row.Japanese maker Mazda rounded out the top three ahead of Holden, although its sales were down by 3.4 per cent.Industry pundits believe Holden will be battling for fourth or fifth place with its old rival Ford by this time next year, as weakening sales of its locally-made models and an ageing imported vehicle line-up drag down sales.

Toyota Australia embarks on a Sydney versus Melbourne battle as white-collar jobs get cut.Up to 1000 white-collar workers at Toyota Australia will know late on Wednesday whether or not they will have a job once the Camry factory closes in 2017 -- and if they have to move to Sydney or Melbourne. Toyota Australia is preparing to scale back its head office operations and combine its two sites in Sydney and Melbourne into one. More than 3900 workers have received an email about the staff announcement on Wednesday afternoon but no-one has a clue which way the decision will fall. Both existing Toyota head office sites at Port Melbourne and Caringbah near Sydney’s southern beaches are sitting on prime residential land expected to be worth enough to pay for most of the redundancies associated with the factory closure. In addition to the 2500 factory workers who will lose their jobs once the Camry factory at Altona closes near the end of 2017, there is uncertainty around how many of the remaining 1400 white-collar jobs will be needed. Other leading car brands such as Mazda and Hyundai both operate their sales and marketing operations each with fewer than 250 office staff.  Toyota Australia currently has 1400 office staff once regional offices are taken into account. “We have duty of care to make this to most respectful transition to a sales and distribution company in the history of Australia,” the Toyota Australia president Dave Buttner told News Corp Australia earlier this year. “We’ve tried to have the most open communication process (with employees) we’ve ever had as a company,” he said at the time. Toyota Australia spokeswoman Beck Angel said media would not be notified of the decision until after workers were told at about 4:30pm on Wednesday December 3, 2014. Toyota Australia’s head office in Port Melbourne has 326 staff while the sales and marketing office in Caringbah, a seaside suburb south of Sydney, has 309 employees. Mr Buttner would not be drawn on which office would close, or if both would remain open. But he said a decision would be made public this year to give workers at both locations ample notice to relocate or find a new job. Toyota insiders have warned that staff numbers could drop below 400 once Toyota becomes solely an importer, meaning up to 1000 jobs could go. Meanwhile, Holden’s total workforce today stands at 3400, but once the 1700 factory jobs go that will leave Holden over-staffed with approximately 1200 white-collar workers and its total could also fall below 500 once its factories close. By comparison, Mazda, the third-biggest-selling car brand in Australia, has 250 office staff and sells about half as many cars as Toyota and almost as many as Holden. Hyundai has less than 200 staff and sells almost as many vehicles as Mazda. Holden says it will retain at least 140 designers who will work remotely on global General Motors vehicles, while Ford will employ about 1200 designers and engineers to help develop foreign Ford vehicles. Toyota Australia total workforce: 3900Factory: 2500White-collar: 1400Total number of cars sold in 2013: 215,000Number of cars sold per head office employee in 2013: 55Average number of cars sold per dealership in 2013: 1000 Holden Australia total workforce: 3400Factory: 1700Engineering and design: 500Head office staff: 1200Total number of cars sold in 2013: 112,000Number of cars sold per head office employee in 2013: 93Average number of cars sold per dealership in 2013: 480 Ford Australia total workforce: 2450Factory: 850Engineering and design: 1200Head office staff: 400Total number of cars sold in 2013: 87,000Number of cars sold per head office employee in 2013: 217.5Average number of cars sold per dealership in 2013: 440 Mazda Australia head office workforce: 250Factory: N/A (import only brand)White-collar: 250Total number of cars sold in 2013: 103,000Number of cars sold per head office employee in 2013: 410Average number of cars sold per dealership in 2013: 825 Hyundai Australia head office workforce: 200Factory: N/A (import only brand)White-collar: 200Total number of cars sold in 2013: 97,000Number of cars sold per head office employee in 2013: 485Average number of cars sold per dealership in 2013: 605

Holden Commodore SS poised to get more power by this time next year.Holden plans to send-off the Commodore SS on a V8-powered high by fitting the Corvette-sourced 6.2-litre LS3 V8 that until now has been reserved for the HSV Clubsport.The power upgrade is still about a year away and is also likely to include race-bred Brembo brakes for all four wheels; currently the top-line Commodore SS only has Brembo brakes on the front and standard calipers on the rear.The change means that the Holden Commodore SS will finally be on an equal footing with the Chevrolet version exported to North America – but it won’t have as much power as locally-tuned HSV cars.CarsGuide understands there will still be a performance gap between the Commodore SS and HSV range, which now has the Clubsport R8 pumping out 340kW following the recent model update.The Holden Commodore SS with the 6.2-litre LS3 V8 is expected to have its power capped at 310kW, or 415 horsepower, the same as the US version.To protect HSV, the high-powered Commodore SS will miss out on other HSV enhancements such as the adjustable air intake and exhaust, even larger brakes, 20-inch wheels and tyres, and the built-in data-logging system pioneered by HSV.The upgraded Commodore SS will also lack the HSV’s more daring body kit and exhaust treatment, and sports seats.Holden spokesman George Svigos declined to comment on the planned power upgrade.“We don’t discuss future model plans,” he told CarsGuide.Holden insiders insist the power upgrade is not a response to the supercharged Ford Falcon XR8.CarsGuide understands the plan to fit the 6.2-litre LS3 V8 to the Commodore SS was signed off long before the current VF range arrived in showrooms 18 months ago, and that Holden has deliberately held back the final ace up its sleeve to boost sales in the final two years of local production.Since Holden announced it would close its Australian car manufacturing operations in 2017, fans have rushed to buy V8 models, accounting for 37 per cent of Commodore sales. Meanwhile Ford massively undercalled the enthusiasm for V8 power and is now trying to double production of the recently released XR8 sedan. 

Former Rudd Government spent $14 million taxpayer dollars on a four-cylinder Ford Falcon -- and then bought just seven cars.The true scale of the former Rudd Government's waste on supporting the collapsing Australian car manufacturing industry is revealed with new figures showing taxpayers funded almost a third of the cost of each four-cylinder Ford Falcon.In 2009, $42 million taxpayer dollars were pumped into the four-cylinder Falcon and two other fuel-efficient Ford vehicles under the $500 million "Green Car Innovation Fund".But confidential figures reveal just 1800 "Ecoboost" four-cylinder Falcons have been sold since it went on sale in April 2012 -- less than half as many as Ford originally planned to sell. Furthermore, Federal Government departments have bought just seven four-cylinder Falcons over the past two-and-a-half years, News Corp Australia can exclusively reveal.It means the Federal Government invested an estimated $14 million in a four-cylinder Falcon that it did not itself deem worthy enough to buy in significant numbers.The four-cylinder Falcon has effectively received a subsidy of almost $8000 on each $37,000 vehicle -- or $11,600 on each car bought by private buyers and businesses if you exclude Ford's company car fleet.The Ford figures compare to a $1490 subsidy on the $20,000 Holden Cruze ($149 million towards 100,000 cars sold so far) and a $1093 subsidy on the $35,000 Toyota Camry Hybrid ($35 million towards 32,000 cars sold so far) funded from the same scheme.RELATED: Ford to hire sacked Holden workersThe 2009 grant to Ford -- spent on a four-cylinder version of the Falcon sedan, a new LPG system, and a diesel version of the Territory -- failed to boost sales or reverse the company's decision to close its Broadmeadows car factory."We know that the Labor Party's quick-fix, band-aid approach to the car industry was unsustainable," said Federal Industry Minister Ian Macfarlane."Labor's record is littered with examples where it scrambled to throw cash at problems, with no strategic approach to industry development or any attention to detail."Minister Macfarlane said the four-cylinder Falcon experiment showed there was a "failure to put in place any safeguards that public money would lead to long-term outcomes or job guarantees".Private car buyers also bought the four-cylinder Falcon in small numbers: 200 went to individual buyers while fleets have taken delivery of just 150 examples.The biggest buyers of the four-cylinder Falcon is Ford itself: issuing 600 company cars from April 2012 to October 2014.Ford declined to comment on the confidential figures which are shared among car makers but not released publicly.However Ford spokesman Wes Sherwood said the four-cylinder Falcon has been "an important addition to the lineup, especially helping retain customers who were looking at competitive vehicles for better fuel economy."Over the past three years Ford posted a loss of $700 million and announced the closure of its car assembly line in Broadmeadows and engine and stamping plants in Geelong in October 2016.In October, the Falcon posted its lowest monthly sales tally in the 54-year history of the nameplate.But despite the downturn, Ford says the four-cylinder Falcon will remain in the line-up of the new model range.As the last ever Falcon of all time, dubbed the FG-X, began arriving in showrooms this week Ford refused to say the updated model would boost sales."It's going to be based on what the customers want, we're continuing to match production to demand," said Ford Australia boss Bob Graziano, who is one of the company's 600 employees driving a four-cylinder Falcon.Ford says it won't increase production from the current output of 83 cars per day -- the same rate Mitsubishi's Adelaide factory had slowed to before it closed in 2008 -- which is down from 133 per day last year, 260 per day in 2010 and a peak of 500 per day 10 years ago, in 2004."We're really excited and we're really proud of what the team has been able to do (with the new model), the early feedback has been very positive," said Mr Graziano.Ford may have over-estimated the appetite for a four-cylinder Falcon but it under-estimated how many fans still want a V8.Ford plans to double production of its XR8 performance sedan because most dealers have sold out until March.

Joshua Dowling road tests and reviews the FG X Ford Falcon at its launch.

2015 FG X Falcon XR8 orders exceed expectations ahead of showroom debut.Ford's Broadmeadows car factory was given a boost this week with the new Falcon going into production -- and demand is already outstripping supply, a situation Ford hasn't found itself in for more than a decade.Demand is so strong for the new Falcon XR8 performance flagship -- at $55,000 the most expensive model in the range -- that Ford is urgently trying to double production of that particular model.Several dealers have sold out of their initial allocation and orders being taken today will be delivered in March.We've been overwhelmed by the customer responseFord only planned to build fewer than 1500 of its XR8 sports sedan over the next two years, roughly 10 per cent of the Falcon's sales mix -- even though 37 per cent of all new Commodores sold today are a V8."We are definitely looking at increasing XR8 volume, it's fair to say we've been overwhelmed by the customer response," said Ford marketing manager David Katic."It's now a matter of going back to (parts) suppliers to see if we can increase our orders."The XR8 has the same supercharged 5.0-litre found in the previous Falcon GT and comes with the same performance brakes, sports suspension and wider tyres -- but it costs at least $20,000 less than the old Falcon GT.

Ford is planning to hire sacked workers from its arch rival Holden to help it develop new cars for China.Ford plans to hire 150 sacked Holden engineers in the coming months to develop new cars for China.Last Friday Holden sacked the first of 200 Melbourne-based engineers that it will let go before Christmas, ahead of a further 400 engineering job losses before Holden closes its factory in 2017.The switch means that Ford will become by far the largest employer of automotive engineers in Australia, taking its vehicle development workforce from about 1050 to 1200, roughly 10 times more than Holden.Ford's engineering boss for the Asia-Pacific region, ex-pat Australian Trevor Worthington, who visited Australia from China this week to launch the last ever Falcon, said he would be "happy" to help Holden's sacked engineers.We will get the right people for the right jobWhen asked if Ford would hire engineers from arch enemy Holden Mr Worthington said: "Why not?"He said Australian engineers were trained to "world class" standards, Ford was about to ramp up extra work for foreign vehicles, and there is ready supply of ex-Holden workers."The growth in our Australian engineering workforce over the next six to eight months … will be about 150 engineers," he said.Ford was not clear about which areas of expertise it would focus on but Mr Worthington said "we will get the right people for the right job"."Whether it's chassis engineers, powertrain engineers, calibration engineers, instrument engineers … the work is cyclical," said Mr Worthington, who expects the engineering workforce to remain stable at about 1200 employees "for the foreseeable future".Holden will have fewer than 150 engineers remaining once its factory closes in 2017, while Toyota is expected to have fewer than half that again.

Want to be chauffeured home by a self-driving car? We’ve taken it for a road test.I’ve just done a lap of Silicon Valley in a self-driving car so secret we had to leave our camera phones behind. No photos or video allowed: only these carefully selected hand-out shots.With two trained technicians in the front seat of this Mercedes-Benz development vehicle we did a 15 minute loop not far from Apple headquarters.The inside of the car appears normal except for the extra cameras on the dashboard and in the windscreen, the giant computer screens giving a detailed view of the system at work, and the loud whirring of a massive computer stashed in the centre console.After the press of a button, the driver took his hands off the steering wheel and the car took control. Literally.Eight radar sensors and five cameras help it spot other cars, traffic lights and stop signs.The GPS navigation tells the car what the speed limit is, and the automated driving system does the rest from there, including braking, steering and accelerating.The technology is still in the early stages of development, so at times the brakes are bit sudden and it feels like you’re being driven by a taxi driver with a heavy foot.The steering isn’t as smooth as a human’s touch, but for a first effort it’s impressive.The only time the system got tricked was when we merged onto a freeway on-ramp. Two lanes merged into one, and a car in the other lane sped up to overtake, so our car hit the brakes.The only time the system got tricked was when we merged onto a freeway on-ramp.We could have been rear-ended but the car decided that stopping was the best option.Besides, our trained driver was ready to take evasive action if needed.But when it came to merging from the ramp and onto the freeway proper, it did a better job that most Saturday morning drivers.The next step: getting the technology to learn who has right of way at four-way intersection.But make no mistake: the technology to create the automated car is close to reality, due in showrooms by 2020.But will it be legal by then? No-one knows.The most likely scenario: it will still be the driver’s responsibility to avoid a crash and not break the law. And that includes drink driving. You’ll still need to be under 0.05 even if you own an autonomous car.To end any arguments before they may arise, Mercedes also plans to have cameras with a 360-degree view record the last 30 seconds before a crash.

Want to put your feet up on a long drive? The technology that enables it is just around the corner. But will it be legal?Forget driverless cars, get ready for trucks that can drive themselves.Mercedes-Benz believes the technology that enables vehicles to drive themselves will be pioneered by trucks rather than cars, and they could be on the road within 10 years.“Trucks mostly use freeways, which is where this technology is already well developed and is most reliable, so it makes sense they can lead the way,” said Mercedes-Benz technology expert Ralf Lamberti during a demonstration of automated vehicle technology in Silicon Valley today.“Trucks are operated by big fleets, they have trained drivers, and there can be a massive fuel economy benefits which can save them thousands of dollars each year,” he said.The Mercedes-Benz Future Truck 2025 released earlier this year has radar and camera systems that detect lane markings, other vehicles and red and green traffic lights.When the system is operating, the driver does not need to touch the steering wheel, the brakes or the accelerator pedal.The technology also uses GPS maps to determine the speed limit and to detect when a truck is approaching a hill -- and then chooses the best gear for fuel-efficiency.But the automated truck will never put drivers out of business because by law there must always be a driver behind the wheel.“It’s a bit like auto pilot on a plane; the plane can fly itself but of course the pilot must be there to handle any situation. So it will be the same with cars and trucks,” said Mr Lamberti.Many luxury cars today already have radar cruise control systems that keep a distance from the vehicle ahead and brake automatically when the car in front comes to a stop.When the technology is applied to trucks, however, Mercedes-Benz believes it will primarily benefit long haul drivers who use major highways between Australia’s capital cities, by making them less fatigued and using less fuel.Although it’s still 10 years away authorities have already ruled out allowing anyone to use the technology to have a nap or drink and drive.Police in Australia say drivers must remain below the legal alcohol limit and attentive to the road conditions at all times, even if a vehicle is equipped with driver aids.Automated driving has created a dilemma for authorities worldwide. At present driverless cars are only allowed to be used by specialist engineers who work for car companies and technology developers.The North American states of California and Nevada have allowed testing of driverless cars since 2012, although there must be a specially-trained driver behind the wheel at all times.To date, Audi, BMW, Mercedes-Benz and Google are the only companies to be actively testing the technology on open roads but Japanese companies Toyota and Honda are also developing similar systems on their test tracks.Last year Volvo unveiled an intelligent truck that can automatically follow the truck ahead in a convoy but it did not have the ability to negotiate tight turns or recognise red and green lights.