Articles by Paul Gover

It's well camouflaged but the headlamps are in a new position, it has the latest Hyundai 'face', and there are likely to be significant changes inside to boost quality.

It has slashed 350 jobs from the workforce at its factory at Altona in Melbourne as a result of falling demand for the Camry, most notably in the Middle East, that pegs production for 2012 at just 95,000 cars.That's a drop of more than 30 per cent in just four years, to an unsustainable level without cuts to the 3500-strong Victoria workforce."Toyota Australia is facing severe operating conditions resulting in unsustainable financial returns due to factors including the strong Australian currency, reduced cost competitiveness and volume decline, especially in export markets," says Max Yasuda, president of Toyota Australia.But Toyota is not alone on the crisis line. Falcon sales fell to less than 19,000 cars in 2011 and the total production at Broadmeadows - including Falcon ute and Territory - was only 45,000 vehicles, while the Commodore lost the top spot in Australian motoring last year and GM Holden is now relying on joint production of the Commodore and compact Cruze to keep its Adelaide factory spinning at profitable levels.Less than two weeks ago the spotlight was on Detroit with questions about the future of both Ford and Holden. The blue oval brand reacted first with a $103 cash injection and General Motors is promising news by the middle of the year on a production deal beyond the next Commodore, the VF that hits the road in 2014.Planning the future for Australian manufacturing is being done at the highest levels, with the Federal Minister for Industry, Senator Kim Carr, meeting Ford CEO Alan Mulally and GM honcho Dan AkersonThe major focus was development of a fresh co-investment strategy between the Federal government and the carmakers, taking advantage of the $3.4 billion fighting fund included in the Automotive Transformation Scheme as part of the motor industry plan that runs through to the end of the decade.Senator Carr was upbeat when he emerged from the talks, firstly to pledge his support of Holden and then to announce the new Ford deal which has been fast-tracked in less than six months. "We had very, very productive conversations. We are at the table," he says.But that was ahead of the Toyota job cut, which is also raising questions about the future viability of the hundreds of component companies that are tied to Ford, Holden and Toyota.“This is an industry that employs 46,000 skilled Australian workers directly and over 200,000 indirectly.  It is an industry that is the cornerstone of research and development activity in Australia and an industry that is one of our top export earners," says Carr.“The enormously competitive situation for automotive globally highlights more than ever the need to support our local automotive industry, to retain core capabilities and to provide skilled jobs so that the industry can rebound when economic conditions improve.“The mining boom won’t last for ever and we need to make sure that we have a core of key manufacturing industries with export potential – including automotive – to turn to when that happens."Break-Out: FundingThe troubles at Toyota have again raised questions about government support for carmaking in Australia.The three locals all get some form of support from Federal and State governments, with Ford Australia recently announcing a $103 million co-funded injection from Canberra and its parent company in Detroit.There has been talk in recent years that taxpayers are funding the industry at the rate of more than $1000 a person every year, but a new independent survey by the Sapere group shows the reality.The actual cost of government backing is $17.30 a year - a level that Sapere rates as the lowest among countries in the Organisation for Economic Co-operation and Development.The level of support in Britain is only $27.270 but it rises sharply from there, to $87.90 in Germany and $93.70 in Canada to $143.30.At the top end, government support in France is $143.30 per person and in the USA it's a whopping $257.40.Break-Out: OpinionThe troubles at Toyota reflect the latest change for Australian carmakers.The best model for success in the 1990s and early 2000s was to have a strong local sales base and then cream the top with an export program.It worked for Holden with the Pontiac G8 version of the Commodore, and Ford also looked for a time at building the Focus in Australia for exports through the Asia-Pacific region.Toyota did it best with the Camry and in its peak export year, it shipped more than 100,000 Camrys from Altona to the Middle East.But carmaking has contracted, the Australian dollar is far stronger, and the best model now is to export expertise - not cars - with work like Ford's T6 pickup program, Holden's design job for the Chevrolet Camaro, and even Toyota's inhouse design jobs.There is still a place for the local makers, but they have to be tightly integrated into a global plan that means more for Australia than just trying to crank out orphan cars for local buyers.

Customers are being promised much more realistic delivery times for the popular Sportage, as well as the Sorento and Optima as South Korea gets serious about success in Australia.  Kia is aiming to be the fastest growing car brand in the country through 2012, as well as earning a place on the top 10 sellers for the first time.  "We want to keep going, to become number one. That target will not be stopped," Charlie Kim, the new managing director of Kia Motors Australia, tells Carsguide.  "This year, and in the coming years, our utmost aim and target is to make Kia Australia the number one fastest growing brand in the market." What about a top-10 result overall? "Definitely. I dare to say."  He says the company is aiming for double-digit growth in 2012 after a 5.4 per cent lift in sales during 2011 to reach a total of 25,128. Kim acknowledges the backlog on some Kia models last year, apologises to owners, and promises a stronger commitment to early deliveries. "The length of the wait was not acceptable, it was far too long," he says.  "The target this year is 4-6 weeks, maximum. They have become a model of desire, but people showed last year they will wait for the car. "Supply has been much improved. Sportage diesel will be improved from this month, Sorento is already improving from the end of last year. We also have better supply of Cerato."  This year will be relatively quiet on the new-model front but Kia promises a continued emphasis on local development, especially on the ride-and-handling package that has set his brand apart from other importers.  "It's a strong aim that we want to keep going. Cars for Australian tastes and Australian conditions." Kia's big arrival for 2012 is a totally overhauled Sorento, with an existing body sitting on a new chassis, but Kia says there is more.  "Starting this month we have three and four-door Rio. In the middle of the year we have Sorento and we think this will do well. It's not a completely new car but they have changes the chassis."  One disappointment is that Kia will not do a version of the Hyundai Veloster, potentially a breakthrough car for 2012, as the company does with other shared platforms. And Kim admits that Kia will not be able to challenge the big brother in their Korean family, even with his aggressive targets.  "We will not catch Hyundai, but the project is to grow faster and continually close the gap on all the importers," he says.

It's been by far the strongest automotive brand for nearly two decades and 2011 was its ninth consecutive year as Australia's favourite. So the announcement of major job losses at Altona yesterday is a huge hit for a company which looked, until yesterday, as the most stable and consistent of the three local makers. It will, inevitably, raise more questions about the viability of carmaking in Australia and the wisdom of government support for the industry - even though a recent study shows that Australians pay only $17.30 in taxes for carmaking, against $27.20 in Britain, $93.70 in Canada and a whopping $257.40 in the USA. It's now obvious that Toyota's business model for Australia - combining major Middle East exports with local Camry and Aurion sales - is not sustainable during a global economic downturn with a high Australian dollar. Ford and Holden already knew, after a failed plan to put the Focus into Broadmeadows for Ford exports around the Asia-Pacific region and the collapse of Commodore shipments to the USA for badging as the Buick G8. It took a $103 million cash injection from Detroit and Canberra this month to cement a future for the Broadmeadows-built Falcon until 2016, with no guarantees beyond then, and even a long-term commitment by GM Holden to local carmaking comes without a Commodore plan heading to 2020. Toyota Australia is committed to the Camry and Aurion, and Brand T is building a $350 million engine factory in Melbourne that will open before the end of this year, but it has been rocked by problems beyond its control. The global financial crisis hit the Middle East hard and that's where Toyota Australia ships the vast majority of the Camrys it builds for export. It was also bleeding money at 2011 export levels. Production at the Altona factory has fallen from a high of 148,931 cars in 2007 to around 94,000 last year. The best export year was 2008 with 101,688 cars, but that number also fell dramatically to around 60,000 last year. For 2012, Toyota Australia is only forecasting production of 94,000 cars - despite the arrival of a new Camry, Camry Hybrid and V6 Aurion - and that is nowhere near enough for the current workforce of 3500 people. The problems at Toyota Australia are disastrous for the 350 people who will lose their jobs, and bad news for anyone in the hundreds of component supply companies that service the three local carmakers. But it's important to remember that the Camry - just like the Falcon and Commodore - is a world-class family car delivered at a terrific price in Australian showrooms. It's easy to knock the car industry but it still makes a huge contribution to Australia, not just in taxes but also by providing jobs and inspiration in the most complicated business in the world.

But the reason behind the move at Big T - which looked the strongest of Australia's three local carmakers just a year ago - is simple: exports. There was a time, with booming sales in the Middle East and a weak Australian dollar, that Toyota Australia was minting money off the exports of its locally-made Camry. Exports also provided the critical mass for local production, even with Camry and Aurion twins that struggled to approach the local success of the Holden Commodore and Ford Falcon. Altona really needs to crank out more than 100,000 cars a year to stay in the black. Now, with sluggish demand and a strong dollar, the export strategy is a loser and the reason why production at the Altona factory has fallen from a high of 148,931 cars in 2007 to around 94,000 last year. The best export year was 2008 with 101,688 cars, but that number also fell dramatically to around 60,000 last year. Toyota Australia is reluctant to provide forecasts for 2012 or beyond, but it's a fair bet that it will have to adjust its local production - even with an all-new Camry and Aurion coming on stream this year. It could top 35,000 local deliveries this year but a slow recovery in the Middle East from the global financial crisis means there are no guarantees. And that's the key, as both Ford and Holden have shown in recent times. It took $103 million from Detroit and Canberra to give the Broadmeadows-built Falcon a future to 2016 while Holden has a long- term commitment to local manufacturing but is still looking for a guaranteed future for the Commodore in the run-up to 2012. Toyota has provided some certainty with a $350 million investment in a Melbourne engine factory that starts production late this year of the 2.4-litre engine used in both the Camry and Camry Hybrid. Even so, it is working hard to balance the books at a time when every outpost of every major carmaker is under tight scrutiny and expected to pay its way.

It has a giant job, firstly in drawing newbies to the brand and secondly as one of the three legs of Subaru's new global small-car attack. The Subaru XV comes to Australia first, but will soon be followed by an all- new Impreza and then by a WRX that moves much further away from its humble small-car roots. It must also win buyers to a baby SUV category that's in its infancy in Australia, just as the Forester did. "We are creating a category killer with the XV," says Nick Senior, managing director of Subaru Australia. It blends all the key elements of what a small car can do with some of the great charcter of an SUV. It's got increased ground clearance and improved visibility, but it's a great drive." Senior recognises the importance of the car and says it's a crucial car for the company's future growth and customer base. "I think it's very important. It's not only important but a big opportunity," he says. "It's ground breaking and in the SUV segment it will be like the OUtback and Forester." Senior describes the XV as a morph job on a variety of existing classes. "It's a hatch or sedan for small-car buyers, but with the ingredients of SUVs. It's got the versatility to deliver lifestyle choices. It's got the lowest centre of gravity of any of its competitors but also the highest ground clearance." But he distances Australia from Subaru's three-pronged small-car push.  "I see it more as a three-SUV strategy. We've got the XV to appeal to singles and younger couples, the Forester is more for families and people with a few kids, then we've got the Outback. I think it's more about covering the bases in the SUV category." Apart from the XV, the biggest Subaru arrival for 2012 is the new Impreza. "We are now literally trickling cars into dealers in the next few weeks but major stocks don't arrive until March," Senior says. "The new Impreza and SV are important to get us back to our rightful place in Australia, which is not 34,000 cars a year but 40,000. That's ambitious but what we'd like to achieve this year."

When you drive Number One, the original 48-215 Holden, it's hard to appreciate the impact it must have had in Australia in the 1950s.It's very basic, very slow, and about as roomy as a Kia Rio. I've driven it twice now and it's emotionally brilliant but functionally - by 2012 standards - about as impressive as Fred Flintstone's pedal car.It feels downright scary when the speedometer needle swings around towards 60 miles-and-hour. No crumple zones, no airbags and even the tyres are historic narrow crossplies.But the first Holden really put Austalians on the road and that means it has to top any list of the most significant cars in our motoring history.The rest of the best are a strange mix that reflect changing times and needs, from the muscle cars of the 1960s to the breakthrough front-wheel drive Mitsubishi Magna, the first compact Commodore and now the Territory - a Falcon wagon re-wrapped as an SUV - and the latest locally-made compact, the Cruze.I have not driven a Leyland P76, although it's on my personal Bucket List, but I know it's a car that was well conceived, and should have topped all its rivals on performance and comfort, but was very very very badly built.A pair of retrospectacles always makes it easier to assess a car, and see how it fits into Australia's motoring history, but the really big breakthroughs are obvious from the start. I can still remember clearly my first sight of a Charger, watching Allan Moffat winning Bathurst in a Falcon GTHO, and then driving the VB Commodore as a young motoring journalist.There have been thousands of test drives over 30 years since then and my personal Aussie favourites include everything from the XD Falcon 351 to the locally-tweaked Nissan R32 GT-R, as well as some obvious Falcons and Commodores. But the best car is always the next one, because there are always new technologies and improvements to comfort, quality, fuel economy and safety.Right now I cannot wait to see what Ford has done with the first four-cylinder Falcon, and if the downsized engine and EcoBoost efficiency improvement are enough to save the homegrown Ford.

The Audi A3 has a family look similar to the latest A5 and A6 but significant use of aluminium and lightweight steels means the new model will weigh up to 80 kg less than the outgoing A3 hatch.Witha five-door Sportback, saloon, cabriolet and avant wagon also in the lineup.

It's caught on a frozen lake in Scandinavia with bodywork that reflects the production plan for the car that will sit alongside the i8 coupe in BMW's new 'i' sub-brand.Expect it here in 2014 at about $50,000

...with camouflaged bodywork reflecting a longer and wide body than today's car.Carparazzi expects big changes in the cabin, including a dash that ditches the centre-mounted speedometer for a more traditional instrument cluster.