Articles by Neil McDonald

When the square-rigger Soul hatch lands in April Kia expects to receive just 500 cars for the year.Kia Australia president and chief executive officer, Terry Im, blames international demand, saying he hopes to improve on those numbers by leveraging the factory to push 1200 our way."Initial supplies will be constrained though," he says.For Kia the Soul is a shape-shifting car."Even our dealers are saying it will help change perceptions of Kia," Im says.Initially all Souls will be sourced globally from one of Kia's South Korean factories.Like the Nissan Cube and Toyota Scion xB, neither of which is sold here, it is aimed at the Gen Y buyers.But Kia Australia's head of product planning, Nick Reid, says its interior space and packaging will also appeal to a wider audience.Like the Mini Cooper, each Soul will come with a huge range of individual trim and paint combinations, he says."We're looking at offering all the customisation available in other markets," Reid says."It's a key part of the Soul strategy."The car's distinctive high-riding design and bulging wheel-arches give it an off-road look but the car will be a front-driver only.The Soul is 1610mm high but the base of the windscreen is 135mm higher than a typical small car, the hip-point is 120mm higher and the ground clearance is raised by 45mm.Kia is not talking prices yet but buyers can expect the Soul to start from the low $20,000s.It will have a choice of two engines, either a 94kW 1.6-litre petrol or turbo-diesel powerplant.About 40 per cent of buyers to opt for the diesel, Reid says.The Soul is one of several new Kia arrivals this year.A two-door version of the Cerato, called the Koup, arrives around October, the Magentis facelift mid-year and a new Sorento four-wheel drive lands towards the end of the year.The sub-$30,000 Koup is tipped to be a turbo-charged version of the 2.0-litre engine fitted to the Cerato.The Koup show car unveiled at the New York auto show featured a direct-injection 2.0-litre that developed 216kW/391Nm. 

Although put on hold `indefinitely’ last week, GM-Holden chairman, Mark Reuss, has not ruled out the premium GM brand being sold here at some point in the future.

The recall involves cars built between June 2005 and April 2007 and is part of a world-wide recall of 1.3 million cars.The carmaker says in severe front-end collisions, the seat belt is at risk of causing a foam pad in the car to ignite.Toyota Australia spokesman, Glenn Campbell, said three cars globally, including one in Australia, had experienced the problem.“There is a possibility that a noise-absorbent insulation could heat up when the seatbelt-tensioner is activated in a crash,” he said.“In extreme cases, this could lead to a post-crash fire.”Campbell said Toyota was contacting customers by mail to have their cars checked and have the faulty insulation removed.“The repair takes less than an hour and will be done at no cost to customers,” he said.The insulation was originally designed to reduce noise but subsequent testing by Toyota has found it does not increase noise levels when removed. 

The brand is on hold "indefinitely". The decision has now cast a shadow over two other marginal GM products, Saab and Hummer. However, GM-Holden remains committed to the slow-selling pair despite being put under a "strategic review" by the parent General Motors. GM-Holden chairman and managing director, Mark Reuss, said the company remained committed to Saab and Hummer. "We made commitments with our dealership body on that so we're prepared to honour those commitments," he said. Cadillac was to be the third make, along with Saab and Hummer, in the GM Premium Brands porfolio. Reuss has blamed the global and local car industry downturn for the Cadillac decision. "It's a tough call but we only really had one chance to launch the brand here in Australia," he said. "But in these challenging times we figured we couldn't give it the chance it deserves as our flagship brand."' Reuss said the decision was taken just weeks ago before the investment started to cost big dollars. He said the initial outlay in the luxury brand was "not significant". GM insiders believe it to be in the "low millions" for local compliance. "From a launch expense standpoint we haven't crossed over into the place where we started spending big yet," he said. GM-Holden had already certifying 89 CTS sedans for sale but these cars will now be on-sold into other right-hand drive markets. The CTS sedan was to spearhead the Cadillac brands return within weeks, with other models to join the lineup later. Reuss said the company would turn its attention on building the small four cylinder car in Adelaide. "We have to refocus ourselves on reinventing Holden and the small car," he said. Reuss has not ruled out Cadillac being put back on the agenda when the economy picks up. "We'll revisit it on a month-to-month basis," he said. But in the short term, the luxury franchise is on hold. "There's a tough road ahead from GM and the whole situation that we've gone through with the US governemnent is very tough," he said. "So we have to make some tough calls and good calls on where we focus the resources we have. "In Australia we are focusing everything we have on our core fundamental activities." GM Holden had already appointed 14 dealers nationally and three in New Zealand to handle the franchise. Reuss said discussions were being held with two dealers over compensation for some of their investment. "We're prepared to work through those issues with the dealers," he said. General Motors had wanted to make the Cadillac brand the global flagship for the company.  

Yesterday the storm clouds lifted with the announcement that Italian carmaking giant Fiat had thrown a lifeline to the embattled Chrysler Group in the US.Both have signed a global agreement to share models, design, engineering and distribution networks.The CEO of Fiat Group, Sergio Marchionne said the partnership "is a great fit as it creates the potential for a powerful, new global competitor".Jenkins said the alliance would also give some security and vision for the future."I see pluses on both sides," he said.Under the terms, Fiat will take a 35 per cent equity stake in Chrysler, which also includes Dodge and Jeep.Fiat will also provide distribution capabilities in key growth markets, as well as substantial cost savings.The deal is a key element of Chrysler's viability plan and will provide access to Fiat's small car platforms, engines and components to be produced at Chrysler manufacturing sites.Chrysler, the third biggest carmaker in the US, has been dodging questions about a possible sale, asset sell-offs or alliances for months.The company is majority owned by private investment group Cerberus Capital Management, which has no carmaking experience.Analysts see the move as a strategic life-raft for the embattled US business.At the recent Detroit Motor Show, Chrysler vice chairman and president, Tom LaSorda, even went as far as to say that the iconic Jeep brand was not for sale.Fiat has been very successful in executing its own restructuring over the past several years.In addition, Fiat will provide management services supporting Chrysler's submission of a viability plan to the US Treasury as required.The alliance will also allow Fiat and Chrysler to take advantage of each other's networks and rationalise their respective manufacturing footprint and global supplier base.The alliance will be consistent with the terms of the US Treasury financing to Chrysler, which includes contributing to the company's restructuring effort.The deal is still subject to due diligence and regulatory approvals, including the US Treasury.Fiat does not intend making a cash investment in Chrysler or commit to funding Chrysler in the future.Over the past five years Fiat has signed several alliances and partnerships with leading carmakers and automotive suppliers.The chairman and CEO of Chrysler, Bob Nardelli said the benefits are huge."Including access to products that compliment our current portfolio; a distribution network outside North America; and cost savings in design, engineering, manufacturing, purchasing and sales and marketing," he said.Chrysler has previously has held alliances with Daimler, Mitsubishi and American Motors (Renault). 

It's the diesel hybrid all-wheel drive powertrain underneath, which will be available globally from 2011, including Australia.Peugeot Automobiles Australia spokesman, Mathew McAuley says the diesel hybrid is on the company's wishlist."It would have pretty strong appeal I think," he says."Peugeot is keen to be first to market with the diesel hybrid."The 3008 hybrid will have a conventional HDI engine up front driving the front wheels with an electric motor under the rear luggage floor next to the rear suspension to drive the rear wheels.The production hybrid will be heavily based on the 2.0-litre HDI Prologue concept car shown at the Paris Motor Show last year.That car delivers a combined fuel figure of 4.1 litres/100km and C02 emissions of just 109g/km.In Europe, the conventional petrol and HDI versions of the newest Pug wagon go on sale within months.It will line up with the Mitsubishi Outlander-based 4007.McAuley says both the 3008 and 4007 should have strong appeal locally."We are still on the product plan for the 4007 but it's timing is unknown," he says."And the 3008 goes on sale in the UK (a right-hand drive market) at the end of 2009."Both cars could arrive in local showrooms early next year.Based on the 308 hatch, the 3008 adds a high-riding SUV-style body and a host of technology Peugeot hopes will put it at the forefront of the competitive compact off-roader segment.It uses several new technologies, including dynamic roll control and grip control.There is also a heads-up display, distance alert, automatic parking brake, hill assist and a raft of telematic systems for navigation and on-board entertainment.Roll control is a passive hydraulic system built into the rear suspension cross-member that connects the two rear shock absorbers.It acts like a third shock absorber to flatten body roll in corners and eliminate pitching.Grip control is an advance traction control system with special 16-inch mud and snow tyres.It has five settings standard, snow, off-road, sand and ESP off controlled by a rotary knob on the centre console.Visually the car borrows 308 cues, such as the forward-positioned windscreen.Like the Outlander/4007, the 3008 has a split tailgate and raised driving position.Inside, there is a `multi-flex’ interior with a three-position floor and folding rear seats.With the rear and front passenger's seat folded, the 3008 has a flat floor from the tailgate to the dashboard.Luggage space is 512 litres with the rear seats and 1604 with the rear seats folded.The 3008 borrows its underpinnings from the 308, including front MacPherson strut and rear torsion beam suspension, as well as a normally aspirated 1.6-litre petrol, turbo 1.6-petrol and 1.6-litre and 2.0-litre HDi engines. 

It also means that buyers will view any replacement of that car with great interest.

GM Holden's Elizabeth plant was due to start gearing up to build the Commodore-derived Pontiac G8 ST ute within months, with shipments due to start at the end of the year.

The Queen has asked that her two gas-guzzling V8 Bentley State Limousines be converted to run on biofuel.The Bentleys are based on the Arnage, but were custom-built in-house by the company's Mulliner coachbuilding division.The limos are currently powered by the company's perennial 373kW/1000Nm 6.7-litre eight-cylinder.In the Arnage this engine delivers a combined fuel economy figure of 19.5l/100km, but this car is almost 1.5 tonnes lighter than the royal cars.Bentley says the royal family are big supporters of Crewe's initiative to switch to bio-fuels.It is fully supportive of the move, which means changing over the V8 engines in the cars for a modest fee.The Queen's decision follows the lead of the Prince of Wales, who runs his Aston Martin sportscar on old wine while he has converted his Range Rover, Jaguar and Audi to run on discarded cooking oil.Each of the Queen's bullet-proof cars is believed to have cost about $14 million each.One was presented as a gift to her during her Golden Jubilee in 2002.The second was commissioned by the Crown as a back-up car.The four-tonne armoured cars are fully maintained by Bentley.They will not only repel fire from a Kalashnikov AK-47 assault rifle, but protect the occupants from high-powered hand grenades detonated above the roof even if two go off simultaneously underneath the cars.Like all carmakers, the ultra-luxury VW-owned Bentley brand is aiming to reduce emissions and improve economy of its cars.It has announced that from 2012 it will have flex-fuel engines available across its range.The company is aiming for a 15 per cent reduction in CO2 emissions by then on all its eight and 12 cylinder engines.It will also introduce a new powertrain from 2012 that will deliver a 40 per cent fuel economy improvement, while maintaining current levels of performance.The new engine is tipped to be a hybrid.When Bentley launched its three-stage environmental strategy early last year, its chief executive, Dr Franz-Josef Paefgen, said bio-fuels were part of the company's ``corporate social responsibility''.

Cate Blanchett, Jennifer Hawkins, Sandra Sully and Ian Thorpe all drive shiny new Audis, Laura Csortan has a Cadillac, Jim Stynes and Matt Shirvington drive Volvos and horse trainer David Hayes has a BMW.But none of them pays.It cost Michael Clarke more than $250,000 to slide Lara Bingle into a raunchy new Aston Martin V8 Vantage but car brands are so keen to connect to potential buyers that they are happy to loan cars to A-list celebrities and sports stars.Most of the cars are high-cost flagship models, from the Audi TT coupe and Q7 four-wheel drive to the Volvo XC90 SUV and the Cadillac CTS which goes on sale in Australia next month.The list of occupations of the ambassadors is almost as long as the companies involved, including athletes, environmentalists, radio jocks and fashion folk.Audi runs such a big freebie fleet that rival brands call it the United Nations - because it has so many 'ambassadors' - at an estimated cost of more than $1 million.The German brand currently has 18 ambassadors on its books, with Collette Dinnigan, Cathy Freeman, Sarah Murdoch, Grant Hackett and George Gregan among its other famous faces.Volvo has environmentalist David Ireland on its books, as well as Shirvington and footballer Matt Giteau."It is another way of raising awareness of the brand. It helps us to break through into areas where we might not otherwise have had a foothold," says Volvo spokesperson Laurissa Mirabelli."Our assocation with Matt Giteau and Matt Shirvington takes us into the sporting world, which is a new area.And she says Volvo has plans to sign more drivers."We will be expanding our program into other new areas," Mirabelli says.At Saab, Sigrid Thornton is a long-term ambassador and chef George Calombaris has also come on board.Sometimes the celebrity association goes beyond a car, with driver training as part of the package. And many A-listers get a taste for the deal through the Celebrity Race at the Australian Grand Prix, which has been backed in the past by BMW, Mini and Fiat.Homegrown brands Holden and Ford are part of the program, with the red team backing Deborah Hutton and the Australian netball team and the blue-oval brand taking on cricketers Andrew Symonds, Matthew Hayden and Michael Hussey, as well as Stephanie Gilmore.But BMW has wound back from the days when Felicity Kennett, James Morrison and Ken Done flew its flag."People are much more savvy these days. Having ambassadors is less relevant when people are more interested in the value, the technical innovation and whether the brand is something they aspire to own," said BMW Australia spokesman, Toni Andreevski."Just because a celebrity drives a car does not make it any more relevant to their purchase."And Mercedes' best-known brand rep, retired racer Mick Doohan, actually pays for his hot AMG Benzes - although not full retail."Mick is more of an enthusiastic customer," said David McCarthy of Mercedes-Benz Australia."Certainly, Mick's invovlement with AMG is very beneficiial when you see the reaction when he drives our cars in classic rallies. But, beyond that, we don't see much value."It's good to raise the profile, but how do you assess the value? The public is pretty aware."Another motorsport legend, Sir Jack Brabham, has been getting cars and bikes from Honda for decades, and is now on a team with fashion designer Akira Isogawa, Geoff Cox and Suzie Wilks."We get good value for money from our celebrities," said Honda's Mark Higgins.But Mazda has also wound back and only has Olympian Michael Klim, surfer Serena Brooks and radio personality Andy Lee on its books."It's very low-key. Everyone knows it's a commercial relationhip but we don't tend to use our celebrities like other car companies," said Mazda spokesman, Glenn Butler. CAR COMPANY BRAND AMBASSADORS:AUDI:Collette DinniganJennifer HawkinsShannon BennettAlisa CamplinJohn EalesCathy FreemanSarah MurdochAdam GilcristGeorge GreganGrant HackettMatt MoranZali SteggallSandra SullyIan ThorpeSteve WaughTodd Woodbridge BMW:David Hayes CADILLAC:Laura Csortan FORD:Andrew SymondsMatthew HaydenMichael HusseyMitchell JohnsonStephanie Gilmore HOLDEN:Deborah HuttonAustralian netball team HONDA:Geoff CoxSuzie WilksSir Jack BrabhamAkira Isakawa  MAZDA:Andy LeeSerena BooksMichael Klim MERCEDES:Mick Doohan SAAB:Sigrid ThorntonGeorge Calombaris VOLVO:Matt ShirvingtonDavid IrelandMatt GiteauJim Stynes