Articles by Neil McDonald

GM-Holden chairman and managing director, Mark Reuss, says Saab and Hummer, two of the poorest performing brands locally, says the company is keeping tabs on what's happening overseas regarding the future of the Swedish and American pair. "We'll wait and see on those brands," he says. "Those two brands are for sale right now and we'll work with whoever the buyer is of those brands here in Australia." However, Carsguide understands a consultant has been brought into GM-Holden specifically to see how Saab and Hummer fit into the company's overall "fit and mix" operations going forward. Local sales for both brands have slowed to a trickle this year on the back of the speculation over their fates and the woes of General Motors. GM is cleaning out more than half of its brands. Last week it signed a tentative deal to sell Hummer to a Chinese company, Sichuan Tengzhong Heavy Industrial Machinery Co and announced Magna as the preferred bidder for Opel/Vauxhall with the giant Italian car group Fiat also in the running. Pontiac will close down by the end of next year and Saab is on the blocks. IndyCar team owner and Detroit businessman Roger Penske reached agreement last Friday with GM to buy Saturn. The deal could be finalised within three months. GM established Saturn in 1985, aiming the brand at customers who would have chosen low-cost European or Japanese cars. Under the deal GM will continue to build the Saturn Aura, the Vue and the Outlook on a contract basis for Penske Automotive Group, the second-largest car retailer in the US. The agreement will save more than 350 car dealers and 13,000 jobs at Saturn, GM said. Although details have not been revealed GM is believed to sold off the brand for between $US100 and $US200 million. Penske also sells the Smart cars in North America. The two bidders for Saab are believed to be Swedish sportscar maker Koenigsegg and US investment group Renco. A decision on that deal is likely within two weeks. After the halcyon days of the 1990s, Saab sales have largely tanked because of a lack of new models and clear identity of how the Swedish carmaker fitted into the GM empire. Locally, Saab dealers sold just 1158 cars last year and in the first five months of this year they have sold just 186 cars, a massive 60 per cent slump over the same period last year. Hummer's local sales too have taken a battering because of the ongoing GM woes. Dealers have sold 271 Hummers this year, 54 per cent down on the same period last year. Many Saab and Hummer dealers are multi-franchised Holden dealers but industry analyst Tony Robinson, believes dealers will be nervous. "If I was GM-Holden I would be looking at focusing on the core strengths of the company," he says. Tengzhong is one of China's leading manufacturers of road, construction and energy industry equipment. With Hummer in its portfolio it plans to expand into the premium off-road vehicle segment globally and help develop the brand in North America.

The recall involves all BF Series II and III and the new FG Falcon sedan, wagon and utility fitted with the factory-fitted LPG system, called E-Gas, which are popular with fleets and tradies.The cars affected were built from January 16, 2007 to August 22, 2008.The defect involves the brake booster check valve, which may develop a vacuum leak.Ford spokesman, Justin Lacy, said the valve can develop a leak, leading to reduced power assistance for the brakes.Details of the latest recall surfaced on the Australian Competition and Consumer Commission's website last Friday, ahead of the holiday weekend but have, until now, slipped under the radar.Worried owners should contact their local Ford dealer or Ford's customer relations line on 1800 503 672.In recent months Ford has been hit with a range of glitches that are damaging its hard-fought reputation.In March it was forced to recall 83,000 SX and SY Territorys to replace front brake hoses after widespread consumer reports of brake failures.The Herald Sun's Carsguide has uncovered a raft of quality problems at Broadmeadows after months of consumer complaints covering everything from brakes to rust and paint.The most recent concerns relate to front balljoint failures on high-mileage Territorys.In addition, Ford last month recalled its Focus and Mondeos to check problem with brake vacuum pumps.The recall for the LV Focus and MA Mondeo, built since last year, only affects those with a diesel engine.Ford says under certain conditions the supply of vacuum to the brake booster may be reduced causing a hard brake pedal and increase stopping distances.Ford is contacting known owners by mail.In March, Ford recalled more than 83,000 Territorys to fix a brake hose defect which was uncovered by Carsguide after complaints from readers.

"That would be a great first step," according to Honda Australia senior director, Lindsay Smalley."In some states, like the ACT, they also have favourable tax rates on things like stamp duty."Smalley believes more can be done to encourage car buyers into new technology both at a state and federal level. His green message comes as Australia celebrates World Environment Day today.Smalley joined fashion designer, Akira Isogawa, yesterday to promote the event, handing over two Honda Civic hybrid sedans to car share company Flexicar in Melbourne's CBD."There is a natural marketplace resistance to new technology so the Honda hybrid Flexicar will help send a positive message to consumers," Smalley said.Flexicar founder and CEO, Monique Conheady, expects the hybrid Hondas to be popular among the company's 2000 members in Melbourne and Sydney."We've got the cars for a 12-month trial and then definitely we'll put more on," she said."Our customers are asking for hybrid cars."One car would be available at Flagstaff Gardens and the other in Surry Hills, Sydney."We're seeing a lot of referrals but I believe there is much more opportunity to market the concept," she said.The Honda hybrid will cost the same as the smaller Jazz to rent."It was important to send a message to consumers that they did not need to pay more for fuel-saving hybrids," she said.A Flexicar costs between $9 and $13 an hour or $69 to $89 for a whole day including insurance and petrol. Cars can be booked for just an hour or up to three days. The company operates 70 cars, mostly Honda Jazzes, in key inner city areas in Melbourne and Sydney.Flexicar started four years ago with just three cars and a handful of members. The scheme targets high density inner urban areas with good public transport close to drop off and pickup points for its cars."We're seeing a lot of single people become members, particularly those in the inner city areas who don't want to spend money on owning a car," she said."Also, many families use us as the 'second' car."They may already have a family car but occasionally need a second car for short trips."Similar car share schemes operate in the US and Europe and are extremely popular with 900 cities globally participating. Zipcar in the UK and United States, has more than 80,000 people signed up.Smalley also wants hybrids and alternative-powered green cars to get more priority parking spaces. Already some municipal councils and shopping centres are considering such moves. Westfield and Sydney's Darling Harbour exhibition centre already have priority parking for hybrids and Sydney and Melbourne airports have been trialing hybrid parking spots.

It wants to showcase the zero emission car here to remind consumers it has not been caught napping with new technology. It also believes a car like the Megane EV would work in well with neighbourhood "car share" rental schemes in use in Sydney and Melbourne. Managing director, Rudi Koenig, believes EV cars are perfect for these schemes, similar to the bicycle rental system in Paris where people can rent a bike for short trips around the city. Koenig believes that over the past 12 months, the electric car story has been dominated by Japanese and North America carmakers. He wants to grab back a slice of the action, reminding consumers that work on the Megane EV is well advanced. A version of the small sedan is expected to be on sale in the geographically smaller markets of Denmark and Israel next year. Renault says it will deliver similar performance to a petrol powered 1.6-litre Megane. The company expects the EV car to cost the same as a turbo-diesel, about $3000 more than a conventional petrol engine. The Megane EV is part of a collaboration between Renault-Nissan and venture company Better Place, which is also helping roll out EV infrastructure to several markets, including Australia. Initially this infrastructure is likely to be centred on Sydney and Melbourne. Better Place is working with AGL Energy and Macquarie Capital Group to develop a recharging grid for electric cars locally. Renault along with its alliance partner Nissan, has been at the forefront of the push for EV vehicles. The recently unveiled Renault bebop concept van and Nissan's EV-02 car share components. The bebop is powered by a 44kW electric motor that winds out to 12,000 revs and has a top speed of 130km/h. The concept's lithium-ion battery pack comes from a Nissan-NEC joint venture. Nissan says these batteries have 90 per cent better efficiency than a conventional petrol engine and are designed to deliver between 80 per cent and 100 per cent peak capacity for at least six years. Better Place is working with several battery manufacturers to develop new lithium-ion battery technology for a range of new Renault and Nissan vehicles expected to be on sale by 2012. Lithium-ion batteries store significantly more energy and generate twice the power per unit volume than nickel metal hydride batteries currently used in many hybrids. Renault is also working on a recycling program to make sure the new-generation batteries can be disposed of safely. The first mass-market electric cars are also likely to hit Australia by 2012. Mitsubishi Australia has already cleared the way to get its i-MIEV on our roads sometime next year, while minor players Blade Electric Vehicles already builds a $42,990 Hyundai Getz. GM-Holden is also pushing hard to get its hybrid ‘range-extender’ Volt on sale here by 2012. Toyota too will supplement its Prius hybrid next year with the locally build Camry hybrid and a plug-in Prius is also planned. One of the biggest issues facing EV cars is their short range and time it takes to recharge. Newer ‘fast-charge’ systems slash recharging times and the next-generation batteries are pushing the range beyond 150km between recharges.

But Deakin University still aims to have its innovative green car on show at next year's Shanghai Expo in China. Project leader Dr Bernard Rolfe is still optimistic the car will reach Shanghai but admits it will be slightly different to the form shown previously. Because of the funding shortfall the car is likely to take on a different shape."It will likely be more aerodynamic," he says."It will be a cut down version but we hope we can put something together."We are working on a light-weight structure."A group of students initially won $30,000 for the university in a global competition sponsored by Ford in Detroit to design a 2015 Ford that would be the equivalent of the Model T in cost, application and ingenuity. The students called their car T2, for T-squared, a play on the original's name.The burnt orange, three-wheeler was part of Ford's 100th anniversary celebrations to commemorate the original Model T. The three-wheeler is designed to run on compressed air and to turn 360 degrees on itself, to make inner-city parking easy in cities like Shanghai.The president and chief executive officer of Ford Global Technologies, Bill Coughlin, was impressed with the calibre of the entries to push the boundaries of design and engineering."To date, there has never been a vehicle that has left such an impact on the lives of millions, and Ford challenged students to present an alternative that just might do so again," he says.A full-size T2 mock-up model, funded by the Victorian Government, was created with help from C5 Systems, McDowell and Venn and Soldani Bros for Victoria's Automotive week and the Melbourne motor show earlier this year.At the time the car needed about $1 million to reach a full-size working prototype. The Victorian Government has kicked in $100,000 to help and the university is now working with the Automotive Co-operative Research Centre to deliver the car in time.Rolfe is confident the car will meet the Shanghai deadline. "It will be tight but we'll do it," he says.He says he would be happy if an entrepreneur dipped in to help get the car to Shanghai."We are showing off Australia ingenuity on the world stage," he says."There are some good ideas with the car's technology."Rolfe says the car will exhibit about $3 million worth of research and engineering knowhow. When Deakin planned the original T2, it was built to provide some innovative green solutions to modern motoring.The small vehicle uses in-wheel motors that replace the conventional petrol engine, as well as compressed natural gas for longer distances.The wheels are carbon fibre for strength and light weight and it is planned that the body will use a high-strength metal laminate material designed by Canberra firm Elaco.The Elaco material is both lightweight and reasonably elastic to cope with minor impacts. The car met its goal of being similar to the original Model T. Like the Model T it is light, practical, compelling and cheap. Rolfe says the T2 has a projected price of $9000.

Despite new entrants coming into the market, the preference for hybrid vehicles has fallen 74 per cent among private buyers this year, according to the latest VFACTS industry figures on fuel and buyer

Company chairman and managing director, Mark Reuss, said the yesterday local operation was one of three "vital subsidiaries in the Asia-Pacific" and a key part of the "new GM" empire.GM-Holden is bolstered by its close association with GM-Daewoo and Shanghai GM in China, two areas of GM's old empire that continue to grow.After months of speculation over its local operations, a clearly relieved Reuss, was upbeat about the future as GM filed for chapter 11 bankruptcy protection yesterday.“We are safe, we are part of the new GM," he said.Reuss said no more jobs would be lost in Australia ‘right now’."This is an opportunity for the parent company to restructuring and create the `new GM', of which Holden is a vital part of."Reuss said GM-Holden was cashflow positive and "we're on the verge of turning a profit here this last month, even in a down business".He said Holden had been operating as a "stand-alone" business here and created its own luck.As part of the "new GM" the company will now more aggressively seek new export markets for its cars after the axeing of the Commodore-based Pontiac G8 export program to North America and downturn in Middle East business.Reuss said GM-Holden had a viable, sustainable business here in the long term despite continuing concern by some analysts of how a smaller, leaner General Motors would impact the local company when it traded out of bankruptcy protection.GM expects to move out of bankruptcy protection in 60 to 90 days.Reuss said 50 per cent of GM-Holden's business was export.Of that percent 85 per cent were cars shipped to the United States.With GM-Holden confirmed as one of the ‘good GM’ corporate entities, Reuss reaffirmed the move to actively seeking new markets for locally built Holdens, including possibly the Commodore and Statesman.An export hatch version of Holden's new Cruze four-cylinder could also be on the cards when local manufacturing starts in Adelaide early next year.Reuss was reluctant to talk about specific markets but confirmed the company is "going to recoup our export losses with new programs". GM-Holden had expected to export 30,000 Pontiac G8s to the US when the deal was announced in 2007.However, sales fell well short of forecasts. At the end of last year only half of the 24,000 exported cars were sold. Over the past 18 months Holden has reduced its workforce and production capacity in response to the downturn in car sales.GM-Holden current builds 310 cars a day at its Elizabeth plant in Adelaide, about 66,000 vehicles a year, which will increase when the new small car comes on line. The factory has a capacity of about 100,000 vehicles a year. Apart from that there are another 2500 V6 engines out of Melbourne that will be allocated to Mexico to go in the Cadillac SRX.

As the country moves into recession mode, official VFACTS car sales figures are tipped to show a 3 per cent reversal of the depressed car sales market.GM-Holden managing director and chairman, Mark Reuss, said yesterday sales were being bolstered by Federal Government's small business tax incentive.“Some of the tax relief for small business is beginning to take hold,” he said.“So you'll see the market off around 17 per cent rather than 20 per cent.”Reuss also said that Holden dealer confidence was up but demand for large sedans, including the Commodore, has softened as buyers opt for smaller, more economical four cylinder cars.Up until April, the overall local market had slumped 20 per cent on the back of the global financial crisis and shift away from large cars.In year to date terms about 340,000 vehicles have been sold this year.The Federal Chamber of Automotive Industries is forecasting a total market of around 855,000 sales this year.  

It will continue normal operations in Australia and New Zealand and does not expect changes to its business after GM announced it has taken court action in the US to launch a competitive New GM, citing debts of $215.8 billion. However, the company has not come out of the GM crisis unscathed.It has cut Commodore production in half and lost a lucrative export deal to the United States when GM axed the Pontiac brand.GM-Holden chairman and managing director, Mark Reuss, said "operations are unchanged in Australia and New Zealand and we expect it to remain that way"."GM has clearly stated that all of its businesses in the Asia Pacific region, and that includes Holden, continue normal operations and are not directly impacted by this process in the US. No operations outside the US are included in the court filing or court supervised process."Holden is a subsidiary of GM but we are a corporate entity in our own right, an independent company under Australian law."Beyond that, GM has indicated that Holden will be an important part of the New GM. We intend to maintain our focus on Holden product programs and activities."That means technology improvements to our best selling Commodore range, launching the all-new Holden Cruze this month, and the introduction of our locally-built fuel efficient, four cylinder small car next year."We continue to run full operations at Elizabeth and Port Melbourne, producing cars for our 300-strong independent dealer network. We don’t anticipate this decision will have any direct impact on Holdens workforce, dealers, or suppliers. Holden customer warranties are not affected and we continue to deliver the sales and service experience that our customers expect."We wouldn’t normally issue statements to highlight nothing has changed, but we appreciate that customers will naturally ask questions about this sort of announcement from the US."GM president and CEO, Fritz Henderson, said early this morning that the bankruptcy protection filings in the US would have "no impact" on GM-Holden's operations. He said the New GM plan was "an exceptional opportunity to reinvent the company".In a globally televised speech early this morning Henderson said his promise, and that of GM, was to "to deliver a business that can create value and create a future … Do it once and do it permanently," he said.GM-Holden's Reuss said Holden would remain informed of developments in the US, a process which had been determined to reinvent the company."The process being used in the US is unlike Australian and New Zealand law. It is a fast, court supervised process that permits the sale of selected assets to a new entity," Reuss said."Unlike court-controlled processes in many other countries, US chapter 11 allows GM to deal with the financial issues that have built up over many years and for New GM to emerge as a healthier business, better able to deal with the challenges of today and tomorrow. It does not mean ceasing to trade."The New GM is expected to emerge from bankruptcy protection within 60 to 90 days. GM-Holden is consider the jewel in the crown of the GM empire but it has suffered speculation that it, along with other assets like Hummer, Saturn, Pontiac, Saab and Opel, would be sold off. The decision to build the Cruise small car is believed to have been instrumental in saving the local operations.GM has previously indicated it is negotiating with prospective buyers for the Saab and Hummer brands. GM is working closely with dealers, including those in Australia and New Zealand, to continue delivering vehicles and maintaining aftersales and servicing requirements.GM Group vice president and president of GM Asia Pacific, Nick Reilly, said: "We believe this step which was taken with the support of the US Government is the most efficient and effective means for New GM to emerge with substantially less debt and lower operating costs, and with our operations positioned for long-term success."

That's because, if you want to establish some street credibility in the Australian market you need a halo car, preferably a coupe. So after eight years of battling to re-establish its local identity, Renault Australia finally has a car that could pitch the brand into the mainstream, the Megane coupe.The company's managing director, Rudi Koenig, this week confirmed that the coupe would join the line-up around June next year with a hatch and sedan to follow. Koenig believes the new-generation Megane has the potential to be a volume player. It wants to start with the coupe to establish some credibility and recognition, much like the impact the Koleos has had among buyers, he saysThe Megane will be pitched as a volume seller with keen pricing to attack the dominant Japanese players. "We will clearly be concentrating on these Japanese rivals," he says. That means pricing could start around $22,000 for an entry hatch, rising to VW Golf GTi territory for the performance-oriented coupe."Megane will be a car in both hatch and sedan form that will be very important for us," he says."The small car segment is vital and it's the segment that produces the highest volume selling cars. "We have to succeed in that segment."Renault could have introduced the European-built Megane sooner but it would have had a premium European price. "In that segment, let's face it, we are the weakest because our previous model's shape wasn't accepted in the market," Koenig says. "The new Megane has a mature, sporty shape that has global appeal."The coupe will be sourced from France. It has taken a long time to secure the new Megane because Koenig wanted the "international" version of the hatch and sedan, which will be built in both Turkey and South Korea."The basic design and DNA will be maintained but some features will be specific to Australia," he says.Renault Australia is now working out potential sourcing and has several options. It can import the hatch and sedan from Turkey or from its Renault-Samsung affiliate in South Korea."That will be decided before the end of this year," he says. "That's one of the pressing issues I will be discussing with Paris."The sedan and hatch may even end up coming from different plants and could have different names."That's to be sorted out," he says. "But we are determined to bring in a car that gives us a competitive edge, either in the vehicle itself or value proposition."The range-topping coupe arrives first, closely followed by a hatch and sedan by the end of 2010. In Europe the coupe is available with three petrol engines and three dCi turbo-diesel engines. Renault Australia is expected to go for one or two highly specified models.At the top-end the choices are a six-speed manual 134kW/300Nm 2.0-litre TCe petrol turbo or a 104kW/195Nm normally aspirated petrol four with CVT transmission, as well as a 96kW/300Nm 1.9-litre dCi with a six-speed manual.In Europe the even the entry model gets 16-inch alloys, air conditioning, electronic stability control with anti-skid regulation and understeer control, six airbags, electric heated body coloured door mirrors, cruise control and electric windows.