Articles by Neil McDonald

Well you're too late.

But no more. In the latest 2009 quality survey, it has lost its top ranking to Buick and Jaguar. Both the US and British brands tied for number one spot, pushing Lexus into third spot. In the 2009 Vehicle Dependability Study, Buick improves from a sixth-place ranking in 2008, while Jaguar improves from 10th spot. Following in the top five rankings this year are Lexus, Toyota and Mercury. Despite losing out on number one overall, Toyota garners five segment awards-more than any other nameplate in 2009 for the Prius and Highlander SUV, Sequoia SUV, Solara (a Camry model) and Tundra pickup. Lexus follows with four segment awards for the ES330 (in a tie with the Acura RL), GX470, LS430 and SC430. Lincoln captures two awards for the Mark LT and Zephyr. Various models by Acura (Honda's luxury brand), Buick, Dodge, Ford, Honda, Mazda, Mercury, Nissan and Scion each rank highest in one segment. “Buick has ranked among the top 10 nameplates each year since the study was last redesigned in 2003, while Jaguar has moved rapidly up the rankings,” according to David Sargent, vice president of automotive research at J.D. Power and Associates. “Lexus remains a very strong competitor in long-term quality. “In particular, the Lexus LS 430 sets the industry standard for dependability, with fewer problems reported than any other model in the study.” The study, which measures problems experienced by original owners of three-year-old (2006 model year) vehicles, has been redesigned to include 202 different problem symptoms across all areas of the vehicle. Overall dependability is determined by the level of problems experienced per 100 vehicles, with a lower score reflecting higher quality. The study is used extensively by vehicle manufacturers worldwide to help design and build better vehicles-which typically retain higher resale values-and by consumers to help them make more-informed choices for both new and used vehicles. Sargent says that in the current economic climate, consumers are delaying new-vehicle purchases and keeping their vehicles longer. The average age of a vehicle at trade-in in the US has increased to 73 months in 2009 from 65 months in 2006. “This makes vehicle dependability even more critical,” he says. “Automakers have improved long-term dependability by an average of 10 per cent each year since the inception of the study, which is a testament to the industry's commitment to continuously improve and sustain quality, especially long-term quality. “Making improvements in long-term quality not only satisfies customers who are holding onto their vehicles longer, but it will also influence their decisions when they return to the new-vehicle market or are seeking to purchase a pre-owned vehicle.” The study finds that the frequency and severity of component replacement has a particularly strong impact on customer loyalty intentions. Component areas for which the impact is greatest include engine and transmission. When engine components are replaced or rebuilt, just 11 per cent of customers state that they definitely intend to purchase or lease another vehicle of the same make, compared with almost 40 per cent among owners who report replacing no components. The study also finds that Buick, Lincoln, Mercury and Jaguar owners are less likely to replace components than owners of other vehicle brands. While component replacement rates are similar for premium and non-premium makes, there are notable differences between segments. Owners of models in the premium sporty vehicle segment are least likely to replace components, while owners of models in the van segment are most likely to replace components. The 2009 Vehicle Dependability Study is based on responses from more than 46,000 original owners of 2006 model-year vehicles. The study was fielded in October 2008.

There are few parents who don’t worry about their teenagers getting into trouble while driving. But Ford Australia may have the answer in an innovative 'smart' ignition key that can be programmed to limit a car's top speed, stereo volume and encourage teenage drivers and passengers to buckle up. The MyKey system effectively prevents hooning in the family sedan. Company spokesperson, Sinead McAlary, says the system, which is being rolled out on most Ford cars across North America, could eventually be adopted here. "But it is not something we're looking at in the short term," she said. The technology allows mums and dads to program a key that limits their car's top speed to 128km/h and the stereo to less than half the maximum volume. The system will also provide a low-fuel warning alarm and leaves all the car's safety features, like traction control, switched on while being driven by a teenager. McAlary recognises the technology has great potential here. "We are studying it, but it’s early days," she says. After North America, Ford in Europe is also looking to introduce the MyKey system. McAlary said there was a chance it could come here in the longer term via Europe, where Ford Australia sources its Fiesta and some Focus models. "A lot of it has to do with calibration of the technology," she said. Once Europe adopts it, MyKey could more easily be adapted locally. General Motors has a similar system in its high-powered Corvette sportscar, called a valet key, which reduces the car's performance.  

The model is now more than 20 years old and in its third generation guise.  But the sweetly styled sportscar has remained a light-weight two-seater, powered by a rear drive four-cylinder engine with perfect 50-50 weight balance.Mazda's now retired MX5 program manager, Takao Kijima, says the company has resisted temptation to fiddle with the formula that has made the MX5 a world-wide success.Kijima knows what he's talking about. He was the chassis engineer on the first MX5 when work started on it in 1986, culminating in its launch in 1989.More than 850,000 have been sold worldwide and it has won too many awards to list. Kijima admits that a bigger engine, maybe even a rotary, would give the car faster acceleration but its essence would be lost."If we put a bigger engine in it would be a much more expensive car too," he says. "It's our philosophy to deliver a light sportscar.  It's very important for us to provide maximum satisfaction for the driver."Turbocharging too would be beneficial but overkill, he says. However, the company is aware that it must keep the car fresh.To that end the newest MX5 adopts the more pronounced Mazda `smiley face’ family grille and some subtle design changes that deliver a tougher, more masculine look. The lower side sills provide a stronger, more aerodynamic look and the rear bumper and lights are better integrated.Mazda has added a new model to the line-up, the Roadster Coupe Sports, bringing to four the number of model choices. With the revisions have come modest prices rises of 2 per cent, between $980 and $1195 depending on the model.Apart from exterior changes the cabin has been reworked slightly to lift quality and improve user friendliness. The excellent Bose sound system carries over and so too, the car's excellent passive and active safety systems.An auxiliary jack is also now part of the package for MP3 compatibility. The 2.0-litre four cylinder S-VT engine also continues but has been tweaked to provide better mid-range response and fuel economy.The engine now spins out to 7500 revs and the synchromesh on the six-speed manual gearbox has been improved for smoother shifting. Manual buyers also get a limited slip differential as standard. The six-speed Activematic, which accounts for about 38 per cent of all sales, is a $2200 option.Underneath, the double wishbone front and multi-link rear suspension has been tuned for more precise reaction to steering inputs and the front roll centre has been lowered 26mm for more linear steering response.The MX5 continues to have one of the stiffest two-seater convertible body structures around.  Almost 60 per cent of the car's body is made from ultra-high tensile steel and this creates a very stiff body structure.The hardtop is expected to account for 80 per cent of sales and its light-weight folding roof folds compactly into a space behind the rear seats, allowing maximum use of the boot.  Mazda also points out that because the roof mechanism is relatively simple and does not fold into the boot - closer to any rear end shunts - the car's insurance premium is better.  Like the previous model, the hardtop opens or closes in 12 seconds.Mazda says extra sound-deadening in the hardtop has helped lower cabin noise. In true Mazda fashion, the individual changes add up to another complete sportscar. Driving FIRST up, we'd have to say that the MX5 has no logical competitors this side of a Lotus.Of its closest rivals, perhaps the Nissan 350Z Roadster comes close but costing about $75,000, it is also a more expensive car. The Ford Focus Cabrio, Holden Astra Cabrio, Mini Cooper Cabrio, Peugeot 207CC, Volvo C70 convertible and Volkswagen Eos may match its open-air abilities and add two extra seats but as Takao Kijima says, they may not have that almost intangible `essence’ that is an MX5.We've said before that the MX5 is a masterpiece of design, packaging and dynamics and this carries over to the new car.  The car's styling was already good but the subtle changes have given the overall look a new leash on life and a more purposeful stance.It could be argued that the Mazda "smiley face" grille works better on the MX5 than it does on the new Mazda3.  Inside, moving the cupholders, making the armrests more comfortable and the overall quality lift of the cabin are measured and well thought out.Fortunately little has changed about the cars steering, suspension or dynamics. They remain impressive. On the road, the MX5 will bring a smile to any jaded driver who has tired of revenue-raising speed cameras and inattentive drivers.Unleash the two-seater in a corner and the chassis balance and grip is quickly apparent.  The ride too is surprisingly comfortable and supple.However, without driving the previous model back-to-back it is hard to measure the improvements to the free-revving 2.0-litre engine. It feels strong, will happily sing right up to 7500 revs and on manual models, the "sound enhancer" does provided a meaty sound to the engine.While maximum torque is still produced at 5000 revs, maximum power is up 300 revs to 7000 revs. The 2.0-litre four remains a smooth and enjoyable powerplant. The biggest problem is perhaps deciding between the slick six-speed manual or well-sorted ratios of the automatic with its steering wheel mounted paddle shifters.We managed to spend time in both the standard Roadster Coupe and Sports model, which adds Recaro sports seats and BBS alloys, which add a more customised look to the car.  The comfort of the Recaros cannot be faulted but any generously proportioned drivers may prefer the standard seats.The softer looking dark silver panel across the dash is an improvement over the previous piano black too.  Despite work on reducing cabin noise on the Roadster, at highway speeds the noise levels are still disappointing.  But that's a very small niggle.The MX5 has won more than 180 awards in its 20-year history, including a listing in the Guinness Book of Records as the best selling open two-seater ever.  We can only add that if you have an automotive must-do list, owning an MX5 should be at Number 1.

Tradies, small businesses and farmers are still unaware of the Federal Government's 30 per cent Small Business and General Business Tax Break. They have until June 30 to take up the rebate on new vehicles. David Lye, director of Private Fleet — the country's largest car buyer service – says he is hopeful more businesses would take up the offer. "I'm amazed there isn't more knowledge out there about this deal," he says. Lye describes it a "once-in-a-lifetime opportunity". The tax break is currently going through Parliament and expected to become legislation in two weeks. Under the scheme, a small business that pays $50,000 for a new work vehicle will be able to claim a 30 per cent deduction on top of the normal 22.5 per cent depreciation deduction. This delivers a tax write off for the year of 52.5 per cent, or $26,250. The tax break only applies to new vehicles or demonstrators. Lye says there may be some hesitancy from small businesses to wait until the tax break becomes official. "It will happen though," he says, adding that Private Fleet's customers are aware of the break and the company was busy fielding inquiries. "But many people still don't know about it," he says. GM-Holden boss, Mark Reuss, has welcomed the rebate, saying that it would provide "a strong incentive for business looking to update their fleets". The country's peak car industry body, the Federal Chamber of Automotive Industries is getting behind the scheme. FCAI chief Andrew McKellar says it is great boost and a "pretty sizeable incentive". The rebate is part of the government's economic stimulus package. Based on January's new car sales figures, McKellar says the overall value of the tax concessions back to the car industry could be upwards of $500 million. "So if you're spreading that across the industry that's a very big chunk," he says.

For a short time, it classes luxury cars bought for a business as a capital expense and therefore entitled to the 30 per cent investment allowance.

Now Hyundai is following up the success of its best-selling Euro-styled i30 hatch with a family friendly wagon, called the i30cw, for “crossover wagon”.The newest Hyundai is $1500 more than the hatch, with prices starting at $20,890 and Hyundai is confident it will be a runaway success like the five-door hatch.Engines choices are a 1.6-litre petrol four cylinder and 1.6-litre four cylinder CRDi turbo-diesel.Launched this month, the i30cw is based on the hatch but is slightly longer, delivering wagon practicality and flexibility. Two models will be available, the SX, SLX and for a short time a launch-edition Sportswagon is also on sale.The auto-only $29,990 Sportswagon uses a 1.6-litre petrol engine and shares its name with the popular Hyundai Lantra Sportswagon models from the 1990s.Hyundai Australia expects to sell about 500 Sportswagon models and the company’s Australian chief executive, Steve Yeo, says it may become a permanent part of the lineup.“We’ll see how it goes,” he says.The i30 Sportswagon has 17-inch alloys with chrome inserts, side repeaters in the outside mirrors, iPod, USB and auxiliary connectivity, six-speakers, leather interior, steering wheel mounted audio controls, six airbags and electronic stability control.Yeo says space is the wagon’s big selling point.At 4475mm, the cw is 230mm longer than the hatch and sits on a 50mm longer wheelbase, which translates into more rear passenger and luggage room.The wagon is also 40mm taller than the hatch while the luggage area has 415 litres of space with the rear seats up and 1395 litres with the rear seats folded.Hyundai says the luggage area will accommodate a full-size stroller or bike.Like the hatch, the wagon gets electronic stability control, traction control, anti-skid brakes and active headrests and a five-star crash rating. The SLX and Sportswagon add driver and front passenger side (thorax) airbags and curtain airbags, which are a $700 option on SX models.All wagons get a full size spare with an alloy spare in the SLX and Sportswagon.The i30cw also gains Hyundai’s active locking system, called HALO, which automatically locks all doors when car reaches 40 km/h.The doors automatically unlock when the key is removed from the ignition. However, front seat occupants can override the system to easily exit the car.Hyundai’s director of sales and marketing, Kevin McCann, is confident the wagon will repeat the sales success of the hatch. “The hatch was the fourth best selling small hatch in February,” he says.The i30cw will muscle in on the Holden Viva estate and Peugeot's 207 and 308 wagons, but with the Holden Astra as its nearest price rival, the crossover wagon is tipped to be popular with both fleets and private buyers.The company expects to sell about 100 a month, many to “lifestyle” buyers who do not want, or need an off-roader, according to the company’s general manager marketing, Oliver Mann.“Less than 30,000 wagons were sold last year, about 3 per cent of the overall market,” he says.“By comparison SUVs make up 21 per cent of the market but there are signs this is plateauing.”Mann says the he believes the i30 wagon has the ability to lure disenchanted buyers from larger off-roaders because of its space, practicality and compact size.“But it’s still a roomy car,” he says.It is really no surprise the i30 station wagon behaves in a similar manner to the hatch.They share much underneath, including engines and suspensions.After a brief stint in the 1.6 CRDi SLX and 2.0 Sportswagon, there is no doubt Hyundai has another hit on its hands.The packaging is right, the size is right and the price is right.As with the hatch, the wagon gets well positioned, legible controls that could have come from a Volkswagen. All controls have a quality and durable feel.But the real news is out the back.The car’s extra length translates into space where it’s often neglected, in the back seat and luggage area.The rear seat has plenty of legroom for an adult even if there is a taller person in the driver’s seat.The 60/40 split fold rear seats are easy to lower for an almost flat luggage floor. However, unlike some prestige wagons, the seat cushion does not fold up and out of the way.There are some nice practical touches.Hyundai has picked up some sensible innovations from some of the prestige European wagons, like the luggage barrier net that can be used behind the rear seat or front seats to stop items from moving forward.The luggage net is a standard inclusion as well as the luggage cover. There’s even room around the full size spare to hide items.Behind the wheel the wagon mirrors the hatch. Hyundai has come very far with its design and soft-touch, high-class interiors but the i30’s suspension still needs some work.The wagon remains reasonably composed over smooth roads but when things deteriorate, so does some of the suspension’s overall poise.In the Sportswagon the car’s 17-inch tyre package gives the car a more surefooted stance and the steering feedback feels better but road noise does seem to be more instrusive.Road noise in both the petrol and diesel wagons is suitably muted on smooth roads but over rougher potholed back roads the suspension can crash over bumps and some noise is transmitted into the cabin. It’s not nasty but something to bear in mind.Both the Hancook tyres on the SLX and the Kumho Solux tyres on the Sportswagon provided plenty of grip and the brakes felt strong.Hyundai says the suspension in the wagon has been tuned with Australia in mind but a little more development may be needed.However, it must be said that in its price segment many buyers will be coming out of older wagons and hatches, so driving the i30, in either hatch or wagon variants, will still be something of a revelation.Perhaps where the i30cw is lagging some of its competitors is with transmissions. Hyundai is working on a new six-speed sequential shift auto but the i30 gets a fairly conventional four-speed automatic and five-speed manual when some of the Euros now have six-speed manuals and automatics available.Hyundai expects most buyers to opt for the four-speed auto, which performs adequately in both the CRDi and petrol models.The wagon tips the scales, marginally heavier than the hatch, about 40kg to 44kg depending on specifications.That means the 85kW/255Nm CRDi turbo diesel has no trouble doing its job. This engine is very smooth, quiet and according to Hyundai’s figures, delivers a combined fuel economy figure of 4.9 litres/100km for the manual and 6.0 litres/100km for the four-speed automatic.There’s a lot to commend the i30 wagon and it again proves that Hyundai is maturing quickly as a brand and it is continuing its pursuit of higher quality and design.

The Hyundai buyback scheme has already been a hit in the United States, where unemployment levels have hit record levels. The assurance plus program means new Hyundai buyers can return their car without a penalty if they are retrenched. The company will also pay car repayments for up to three months if owners are out of work. It has been largely credited with bolstering Hyundai sales as the North American car market, particular for the big three carmakers General Motors, Ford and Chrysler, has collapsed. Hyundai Australia general manager of marketing, Oliver Mann, said he was very interested in the idea. "There is no doubt Hyundai's Assurance Plus program has been a success in the US," Mann said. "We are looking at the market environment here and the developing economic situation. "Hats off to our US parent though for kick starting it." However, Mann and the company's Australian chief executive, Steve Yeo, believe using such a scheme here is still largely academic because the Australian car market was still holding up well given the local economic conditions. "Yes, the scheme is working in North America and it is innovative," Yeo said. "But I don't think our Australian customers need it at present." However, Yeo said it was a big sales point of difference between Hyundai and other US carmakers. Now even GM executives are warming to Hyundai's idea. Executives confirmed this week they may copy the incentive idea, which could spread to other carmakers. Vehicle sales in the US are down 40 per cent this year compared to the first two months of 2008. By comparison Hyundai sales in the US are up 5 per cent while GM sales have slumped 51 per cent.  

A growing number of prestige and sports cars are being repossessed from owners who cannot meet their commitments during the economic downturn.Finance companies and auction houses are reporting a massive increase in the number of seizures and sales, with some cars going for bargain prices.Exotic Ferraris are the first to go as the economic screws tighten, according to Pickles Auctions chief auctioneer, Steve Allen.Next week, Pickles will flog off more than $2 million worth of repossessed Ferraris, Aston Martins and Porsches at its quarterly luxury auction.It's the biggest collection of expensive European cars the company has put under the hammer in recent years.Allen has a late-model Ferrari 599 sportscar, worth more than $650,000 new, expected to fetch $450,000 next week while a $258,000 Aston Martin Vantage and Ferrari 360 F1 Spider is also up for grabs."We've definitely seen an increase in the repossession of $150,000-plus exotics," he said."It's not just the banks and repossession agencies, people are getting rid of these cars."Allen said the harbour city tended to have a higher proportion of Italian exotic sportscars but Melbourne also had its fair share that were being repossessed.He blames the economy and expects things to get worse."There's been a steady increase in repossessions in recent months," he said.Pickles will offer about 80 vehicles at its quarterly auction.Apart from the exotics, other luxury brands are on the block, with a big collection of Mercedes-Benz and BMW sedans."We have three high-performance AMG Mercedes cars on offer," he said."But there are also a lot of BMW 3 Series cars."Almost 70 per cent of all Pickles cars are repossessions.Grays Online auction house has also seen a doubling of exotic cars going through its business over the past six months.Altona-based ManheimFowles auction group also has a steady stream of luxury cars going through its gates.The company's chief executive officer, Scott Levy, said it was not just luxury cars."It's across the board," he said.Levy said many people were also deciding against a new car because of the economy and jobs downturn."There is no such reluctance about buying a used car. And it is not just in one state," he said."Demand is strong at all our auctions across Australia."Manheim Fowles' clearance rates are on the increase.The company handles more than 300,000 vehicle a year. 

Local VW Australia executives managed to convince Germany to build a cab-chassis version of its new 1 tonne Robust pickup when development work started.VW Australian director of commercial vehicles, Phil Clark, says unlike Asia, a cab-chassis variant was critical for our market."We've done a lot of driving of that to make sure we stay true to our market," he says."A lot of the other countries don't run cab-chassis," he says."But South Africa and ourselves are strong on cab-chassis, which some of the other markets don't need."Clark says Australia "is a bit quirky like that".The Robust debuted at last week's Melbourne Motor Show decked out in search and rescue livery.However, it is likely to undergo a name change before it goes on sale here late next year after its South American launch later this year.Clark says 95 per cent of the Melbourne show car will make it into production."What you see here is largely how the car will look," he says.Clark believes the big pickup presents a big opportunity in a segment VW has never contested locally.The Robust will sit above the Transporter and go into battle against popular Japanese competitors.The bush-bashing VW will take aim at same market segment as the Toyota HiLux and Nissan Navara."We wouldn't have gone into it if we weren't going to be fully market competitive," Clark says."We're deadly serious about it."Clark says the pickup market is the biggest single market in the country "bar none"."And then you drill that down into share and there is opportunity."VW's commercial vehicle share is between 4000 or 5000 units now."The pickup market last year was about 200,000 vehicles so to get a share of that would be great."The workhorse will draw on VW's strengths in common-rail turbo-diesel technology and its 4motion all-wheel drive system.A petrol engine will also be available.Clark says fuel efficiency and low emissions will be paramount.Apart from a cab-chassis model, the pickup will be available as a four-door dual-cab with both all-wheel drive and two-wheel drive."We will be the only Europeans in the market," Clark says.He has already driven a prototype in Germany and says it is more than a match for the Japanese.VW is aiming for global sales of 100,000 a year.Clark says the pickup's biggest potential locally is in the 4x4 dual cab segment."It's our biggest segment at the moment," he says.Full pricing and specification details will be revealed closer its on sale date.