Articles by Neil McDonald

Suzuki Australia general manager, Tony Devers, is one of several car executives who believe the Chinese still have some way to go to gain credibility among local buyers, saying they are still an unknown quality on the Australian scene. "They still have a long way to go," he says. Devers comments come as North Americans say they are warming to Chinese cars.A survey of 30,000 new vehicle buyers by Automotive analyst firm, AutoPacific, found that 15 per cent of US new car buyers say they will consider buying their next vehicle from China and 11 per cent will consider an Indian car, without knowing specific brands or vehicles. This compares with 16 per cent who say they will consider a vehicle from Korea, which has been marketing vehicles in the US since the 1980s.Devers believes that to succeed here the local Chinese cars will need to be at least $1500 cheaper, with comparable equipment and safety to the Japanese. "China is still an unknown," he says."It's a difficult job to launch a car today. It took the Japanese many years to establish here, the Koreans were quicker and I expect the Chinese to be quicker again."Malaysian carmaker, Proton, which sells far less vehicles here than Suzuki, is confident of beating the Chinese on price. Proton Australia managing director, John Startari, says the company's new small Saga sedan is part of a wider plan to help battle the Chinese. The new well-equipped small car is expected to sell for around $12,000 when it arrives early next year.The other Chinese challenge is from small vans and commercials. Suzuki's Devers says he is still keen to broaden Suzuki's light commercial vans from the APV but the global financial crisis has slowed progress. "It will be steady as she goes for another 18 months," he says.Suzuki sources its 1.0-litre Alto from a state-of-the art plant in India. However, Devers says the quality of the car is as good as anything out of Japan.Sydney based Ateco Automotive Ltd is spearheading the Chinese push. It has recently launched the Great Wall Motors workhorse utilities and is expected to follow up with a range of small cars. Already several new Chinese cars and one four-wheel-drive are going through homologation to meet Australian design rules. Ateco is also looking at Chery cars.

The broad-ranging ‘lemon law’ could also apply to used vehicles if the Federal Government adopts the recommendations into consumer rights by the Commonwealth Consumer Affairs Advisory Council. The move has been welcomed by motoring bodies, but the RACV says the complaints process also needs to be streamlined. Consumers who have been sold a lemon should get a quick resolution to their problem, it says. Help is already available through Consumer Affairs Victoria, the Victorian Civil and Administrative Tribunal or the courts. But the RACV's general manager public policy, Brian Negus, says there is no clear process to follow. Consumers are often left powerless by the current resolution system, which he describes as inadequate. "It's the consumer who often gets caught between manufacturers and dealers arguing over who is responsible with neither of them putting up their hand and the consumer left with a faulty vehicle," he says. "We believe anyone buying a car must be entitled to service histories and warranty repair records. Consumers must also be informed about what they can do when things continue to go wrong." The RACV wants a level playing field so manufacturers have some rights too. It says any lemon law should recognise that manufacturers should be entitled to a deduction from the purchase price of a faulty vehicle if it is required to buy it back, calculated using the distance travelled of the dodgy vehicle. "Obviously the age of a vehicle will have to be taken into account," Negus says. "If a vehicle is three months old it should be replaced but if one is two or more years old, its kilometres should have some impact on price." In its submission, the RACV defines a lemon as any vehicle that has had three repair attempts to a persistent fault, or a single attempt for a significant safety defect, or has had 10 cumulative days out of service, or defects that occurred within two years or 40,000km. Australian consumers make about 50,000 complaints a year over warranties and entitlements on faulty goods, which costs them $12 billion a year. The council recognises that new vehicles are often the second most significant purchase after buying a home but when that purchase turns out to be a lemon, they are often overwhelmed about where they can get help. "It is important that consumer law provides an effective means of redress when consumers suffer, for example, because of the presence of lemons in any market," the council chairman, Colin Neave says. Negus recommends that consumers get an independent pre-purchase inspection as the first line of defence against buying a defective vehicle. "A comprehensive inspection of a new or used vehicle before purchase helps motorists know exactly what they are buying before handing money over," he says.

With the ink drying on the General Motors sale of the carmaker to Swedish supercar maker Koenigsegg, images of a sleek new flagship 9-5 have surfaced ahead of its official unveiling at next month's Fr

The Superlight is an extreme show machine which shows how much is left in the world's favourite sports car. The stripped down and funked-up MX-5 does without a roof, and any cabin luxuries

The Toyota four cylinder eclipsed the Holden Commodore by just 35 cars last month to become the biggest seller. It is the fourth time in 18 months it has turned the tables on Holden's locally built big six. The Japanese carmaker sold 3856 Corollas versus 3891 Commodores last month.The Corolla led a modest small car sales spike last month as buyers continue to chase economy purchases over large sedans. Apart from small cars, the latest VFACTS industry sales figures for July reveal that sportscars and off-roaders also recorded positive sales gains.Small car sales were up 2.7 per cent in July compared to the same month last year. Sportscars increased 10.3 per cent while medium and luxury off-roaders were up 2.4 per cent and 7.2 per cent.The FCAI's sales figures show that 75,333 vehicles were sold last month, 8643 fewer than the same month last year. Year-to-date 530,556 new vehicles have been sold, down 15 per cent or 96,115 vehicles, compared to the same period last year.Toyota continues to dominate as sales leader. It has sold 110,897 vehicles so far this year to secure a dominate overall market share of 24 per cent. Toyota's lead is almost double that of its nearest rival, Holden with 66,418 sales with Ford in third spot with 54,239 sales.The Federal Chamber of Automotive Industries chief executive, Andrew McKellar, said the Federal Goverment's business tax stimulus continued to have a positive knock-on effect on sales.Despite overall sales being down 10 per cent last month compared to the same month last year, business sales remained strong, he said. There was evidence of a flow-on from the very strong June sales result with strong demand for work vehicles, he said. "Particularly from buyers accessing the business tax break on new investments," he said.Some dealers are also reporting waiting lists of several months on certain models because of a backlog of orders on work utes and light commercial vehicles.Top Ten sellers (July) 1 Toyota Corolla 38912 Holden Commodore 38563 Ford Falcon 28344. Mazda3 27855 Toyota HiLux 25636 Hyundai Getz 21477 Mitsubishi Lancer 21298 Hyundai i30 20459 Holden Cruze 198210 Toyota Camry 1717Top Ten brands (July) 1 Toyota 16,6642 Holden 10,2663 Ford 77834 Hyundai 62265 Mazda 60246 Mitsubishi 41667 Nissan 37568 Subaru 28079 Honda 265710 Volkswagen 2361

And it signals that Holden and Ford's new battle ground will be at the bowser. GM-Holden yesterday fired a salvo across Ford's bows by launching what it describes as the most fuel-efficient Australian-built six cylinder car available. It has unveiled two new hi-tech six-cylinder engines for the Commodore range just a week after Ford said it would build a four-cylinder Falcon. GM-Holden chairman, Mark Reuss, said Holden was going to ‘out-engineer’ its rivals with cutting-edge technology. "Dropping cylinders would be the last resort," he said. The new direct-injection 3.0-litre and 3.6-litre V6 engines will hit showrooms next month in the face-lifted Commodore and Statesman range. Not only is Australia's best-selling family sedan now cheaper to run, it emits less harmful greenhouse gases, Reuss said. "We've been listening to what the customer wants," he said. "We've invested in changing what matters most to motorists, increasing fuel efficiency, improving refinement and developing performance." The new petrol engines will be joined by a more economical LPG Commodore engine. Reuss said the new 3.0-litre Commodore was so efficient, families could drive from Melbourne to Sydney, a distance of 870km, on one tank of fuel. "We know because we've done it," Reuss said. "The car we drove actually got 7.5l/100km in actual real-world driving, that's right in there with our four cylinder entries in the smaller car market." Owners will also be able to save $325 in annual fuel costs too, he said. Reuss said the Commodore's direct-injection technology was a big step forward for the local car industry and Australian manufacturing and was applauded by the Industry Minister, Senator Kim Carr. "We are defining our own future, creating our own luck," Reuss said. "It places a more refined Commodore amongst four cylinder competitors while delivering the space and flexibility which Australian car buyers clearly want." Both V6s adopt what Holden calls spark ignition direct injection, to deliver up to 13 per cent better economy and up to 14 per cent lower CO2 emissions, combined with a new six-speed automatic transmission. The new Omega 3.0-litre gets 9.3 litres/100km, more than 13 per cent better than the existing model's 10.7 litres/100km. This engine also produces 600kg less CO2 emissions than the existing engine. Apart from lower fuel consumption, power is up. The 3.0-litre develops 190kW, up from 175kW of the previous engine, while the 3.6-litre develops 210kW, up from 195kW. Holden's popular dual-fuel LPG range will retain the 3.6-litre AlloyTec V6 but it has been reworked for better economy and lower CO2 emissions. Apart from powering local Commodores, GM-Holden plans to export the engines to several other GM plants globally, including Mexico where it is expected to go into a new Cadillac off-roader. New Holden Global V6 direct-injection engines 3.0 and 3.6-litre double overhead cam alloy V6. Uses 91RON ULP, Euro IV+ emissions rating Power: 3.0 - 190kW @ 6700rpm 3.6 - 210kW @ 6400rpm Torque: 3.0 - 290Nm @ 2900rpm 3.6 - 350Nm @ 2900rpm Fuel economy (l/100km)/emissions: 9.3/221g/km - 10.3/245g/km. Between 9 and 13 per cent fuel consumption improvement, 9-14 per cent emissions improvement. Superceded V6 3.6-litre double overhead cam, variable inlet camshaft, 24-valve alloy V6 (High Feature in top-spec models). Power: 175kW @ 6500rpm HF 195kW @ 6500rpm Torque: 325Nm @ 2400rpm HF 340Nm @ 2600rpm (ECE, Nm) Fuel economy (l/100km)/emissions: 10.6/252g/km -11.6/274g/km  

That's the view of leading global sales guru, Tom Stuker, who will speak at the Australian Automobile Dealers' Association conference in Melbourne this week. Stuker wants to change the consumer perception of car sales people as being untrustworthy. He believes sales folk and dealers are their own worst enemies when it comes to reputations. They can join the ranks of the respected occupations by adopting some commonsense sales methods, he says. Among them are simple tips like following up calls, being easily available to customers and following through with any requests. “It's not just about the reactive side of the business but the proactive side, which is how to network a body of customers to maintain and develop a continual growth of sales and income over a period of time,” he says. For Stuker, most car selling practices are so ingrained, it is hard to change bad habits. “It's the most important purchase after a home but the sales approaches are not good,” he says. “The public deserves salespeople with higher standards.” Of all the brands, he says Lexus has managed to succeed by having a respect for its customers based on building relationships. Stuker has been visiting and preaching his views to the Australian car industry for 20 years and he sees some change for the better locally. “I find the average Australian dealership and salesperson to be more ethical and fair-dinkum that their contemporaries in the US,” he says. “I think there is more professionalism in the average Australian dealership. “Not necessarily street smarts but professionalism.” However, he says bad sales habits are not just restricted to one country. “It's the same in the US as it is in Australia,” he says. Stuker says sales people must also cope with better-informed buyers. “Today's customer is not necessarily smarter about buying a car but they are better informed,” he says. “In the US 92 per cent of people will go to the internet before they make a purchase,” he says. Among his desires is to make the dealers see their salespeople as assets, not just employees. “Dealers will have to start training their sales people and investing in them like assets,” he says. Otherwise their businesses will suffer. He also believes recruits should look at car selling as a career, not just a job. Ultimately too, dealerships have to find a way of not only finding a way of not just improving the buying experience but the ownership experience through relationship building, he says. “After all we are in the customer service business,” he says. Stuker has been involved in most dealership activities, from retail sales and management to sales training and management consulting for more than 20 years. The AADA conference starts on Thursday. Stuker is also planning to return to Australia in October to hold a 10-day sales training course for dealers and their employees.  

The bold, break-through Kizashi has been shrunken and softened from the aggressive concept car that won fans at motor shows across the globe. The production version of the Kizashi is a 130mm narrower and sits on a 150mm shorter wheelbase than the original show car and the shape has also been softened to appeal to ultra-conservative customers in the US, its biggest target audience. The only production payback is an 80mm increase in height, to improve headroom, although this change has also taken some of the edge of out the Kizashi design. Official Suzuki pictures show a car which has changed a lot from the teaser cars, which began as a sporty hatchback and became a all-wheel- drive crossover before the close-to-production version last year. The reasoning is simple: Suzuki's first mid-size car must face up against the volume sellers like the heavyweight Toyota Camry, Honda Accord and Mazda6 in the sub-$30,000 class and so size is critical. Particularly in the US. The Kizashi and Camry share the same width and height but the Suzuki is 165mm shorter overall and it has a 75mm shorter wheelbase than the popular Toyota. Suzuki Australia general manager, Tony Devers, says the car does look smaller visually but it still has a large cabin. ``It actually looks good in the metal and a lot more aggressive in the flesh than the photos,'' he says. The car's full specifications are being saved for the Frankfurt Motor Show but Suzuki has said it will come with an all-alloy 2.4-litre four cylinder in both front and all-wheel drive. The four-cylinder is shared with the Grand Vitara and will be mated to a six-speed manual gearbox or continuously variable transmission with paddle shifters. A V6 all-wheel drive and turbo-diesel are also expected. Apart from the four and V6 Suzuki is also developing a hybrid version. Visually, Suzuki says the car is a combination of both Japanese and European design. The front retains the concept's deep grille but is softer and the slim- line eyebrow headlights have given way to larger headlights and conventional foglights. However, the short boot, short overhangs and sweeping roofline remain faithful to the concept. The Kizashi will hit local Suzuki showrooms in the second quarter of next year. Much of the car's development work was done in Europe with final testing at the famous Nurburgring in Germany. The Kizashi has a rigid light-weight steel body while both the front and multi-link rear suspension make extensive use of light-weight aluminium to ensure nimble handling. Inside the cabin follows Suzuki's current family theme with white and red gauges and the use of alloy-look highlights. Equipment includes a premium Rockford Fosgate sound system, push- button start, and iPod and Bluetooth connectivity. Safety equipment runs to eight airbags, electronic stability control and dynamic control, anti-skid brakes, projector beam headlamps and tyre pressure monitoring. The Kizashi will be built at a new plant in Sagara, Japan.  

With the arrival of the Soul, Cerato and Sorento, Kia adopted the new ‘H’ signature grille from chief designer Peter Schreyer. Now it's the Rio's turn. Kia Australia spokesman, Jonathan Fletcher, says the new-look Rio sedan and hatch are perhaps the most important models to get the signature Schreyer treatment. "They are our volume sellers so the family association is very important," he says. This leaves the Rondo and Carnival as the only two remaining local Kias that do not have the new family face. Fletcher says an updated Sportage is expected to get some cosmetic improvements in September but it may not get the new family face as the next-generation off-roader is due next-year. "My guess is that they will hold off the new face for the Sportage until the new model," he says. "The nose design precludes dramatically altering the grille." The new-look Rio is expected to arrive in local showrooms by October at the earliest. Apart from the family grille the Rio gets a revised front bumper with larger air intakes and new foglights. Equipment has been upgraded and the cabin gets higher-quality materials. Inside, there are new instruments, centre console and upgraded CD-stereo system with Bluetooth connectivity. The car's green instrument lighting has been changed to red backlighting. On the outside, some models are tipped to get five-spoke alloys and there are Euro-style indicator lights in the mirrors. Called Kia Pride in South Korea, the current Rio has been on sale here since 2005. Apart from being the brand's local best seller it has also been one of the top-five selling Kia cars globally. Like the Cerato and Soul, the Rio also gets the new three-spoke steering-wheel design. Under the bonnet, the 1.4-litre four cylinder is likely to carry over but buyers will get an updated 1.6-litre petrol engine that has been tweaked for better fuel economy and lower emissions. Prices are expected to remain close to the current car's $14,990 entry point. The 81kW/235Nm 1.5-litre CRDi turbo-diesel engine available in Europe remains unlikely for Australia.

The engine investment secures the jobs of the company's Broadmeadows and Geelong workers. The new Falcon four will be the greenest large family car available in Australia when it hits the road in 2011. It is one of three new engines planned for the locally made Falcon and Territory. All three engines are part of Ford's global EcoBoost engine strategy announced in the United States earlier this week. Apart from the four-cylinder, the Falcon will also get a hi-tech dedicated LPG six-cylinder engine from next July and the Territory will get a turbodiesel in 2011. But because of the decision, Ford Australia has axed plans to build the Focus small car at Broadmeadows. Focus production was due to start from 2011. However, Ford Australia president, Marin Burela, said no jobs would be lost and the EcoBoost plan would provide jobs stability. Burela said the global financial crisis had made local Focus production unviable and it would have been unprofitable. "The economic climate has changed," he said. "To make a small car viable in this country we needed to bring the most competitive levels of opportunities with that vehicle. "After studying it there was no appropriate way of producing the vehicle locally." The Federal Government will contribute $42 million to Ford's engine plan under its Green Car Innovation Fund as part of its $6.2 billion investment package for the local car industry. The Victorian Government has also contributed an unnamed amount. Industry Minister Senator Kim Carr and the federal secretary of the AMWU vehicle division, Ian Jones, welcomed the decision. "It is an investment in confidence," Jones said. "The workers have been praying for this for some time." Carr said the investment came at a time when the world was going through the worst recession in 100 years. "The global car industry is going through the most radical shake-up in living memory and in this environment the Australian industry is attracting new investment," he said. "The green car fund has given this industry certainty." Burela said the EcoBoost four cylinder would have the same performance but better economy and lower greenhouse emissions than an equivalent six-cylinder engine. It will be sold side-by-side with the Falcon six. Ford will source the four-cylinder engine abroad while the existing Falcon six will continue to be built at Ford's Geelong engine plant. The turbodiesel will also be sourced from overseas. Last November, Ford renewed its commitment to the six-cylinder Falcon engine in place of an imported V6 engine.