Chrysler News

The heat has well and truly come out of classic prices for hyper-expensive collectible cars with prices for the famous Ford Falcon GT-HO dropping in value up to 30 per cent over the past few months. The values are a far cry from 2006 and 2007 when speculators and collectors were paying stratospheric prices of up to $800,000 for Phase III versions of the Falcon GT-HO.Prices for other proven Bathurst pedigree cars like the Holden Torana XU1 and A9X, as well as the Valiant Charger E38 and E49, grew in value because of the Phase III phenomenon. But prices for some of Australia's most collectible muscle cars are cooling as investors keep their hands in their pockets because of the global financial crisis. The decline is not just restricted to the top-end cars either.Classic retailers say that some collector cars that several years ago would have fetched $200,000 are now worth $100,000 and the impact has been felt further down the price scale.But Mike Selby, owner-operator of the Sydney-based on-line company Australian Muscle Car Sales, says even though prices have softened, a mint condition Phase III Falcon GT-HO will still fetch between $500,000 and $600,000.He says even rarer versions may command more but it's a buyers' market. "We've just sold one very good Phase III for $550,000 and we've got one we're selling for $600,000," he says. "But lesser cars without logbooks and that are not perfect will struggle."Selby says a low mileage Falcon GT-HO Phase III in exceptional condition will still command big money, particularly because very few survive. "They only build about 300," he says."There are about 180 left and of those there are probably between 12 to 20 cars with less than 50,000km on the clock. Those cars will command really big dollars."Selby says there is a distinct reason why people opt for the famous Bathurst cars like the Torana XU1, A9X, various Falcon GTs and Valiant Chargers. "They are really buying what you can't buy ever again," he says. "They were cars you could buy at your local dealer, drive to Bathurst, and win a race. That is the mystic of that era. They were factory built race cars and that has not been done since."Selby does not believe that some of the newer cars like the Group A Holdens and Fairmont Ghia ESP models will command the same respect, or prices, among collectors. "They are certainly rare cars and interesting but the reason people were buying the GTs and XU1s is because they were something very special," he says. "I think that is an era that's gone."He says as with all cycles he believes the time is right for smart buyers to re-enter the market. "The market has come down a fair way, in line with what happened in the financial world," he says. "But I think it's flattened out now and holding steady," he says "I don't see anything going up yet but there's definitely more interest now than there was before even if cars are taking longer to sell." Specialist classic seller Paul Sabine of the Brooklands Classic Car dealership in suburban Melbourne echoes Selby's view of the classic slide. Brooklands specialises in rare European vehicles and Sabine says he avoids Australian muscle cars because of the over-inflated prices."Some of the later-model Europeans like Porsches, Ferraris and Mercedes-Benz have dropped off a bit," he says. However, he says demand is still strong for low-mileage early model Europeans and finding early examples is getting harder. Demand is outstripping supply but prices for these cars haven't dropped much," he says.Sabine says one segment that has experienced substantial price plunges of up to 30 per cent are the "middle American cars". "The garden-variety Mustangs, Thunderbirds, Camaros... there are just too many out there now," he says.He says the market is awash with imported left-hand drive daily drivers with people hoping to restore them and sell them for profit. "The bottom line is that the restoration costs still keep climbing," he says. "While parts are available for Mustangs the labour costs still haven't dropped. Why would you spend $60,000 doing up a Mustang that's going to be worth $40,000 and you've also paid $15,000 or $20,000 for it?"Apart from road-registered classics, original race cars are also still commanding top prices. "There are very few around," Sabine says. The national auctions manager for classic auction house Shannons in Melbourne, Christophe Boribon, says although the Bathurst cars have dropped in value, prices for some of the European cars being auctioned have remained buoyant.But Boribon admits that even values of some of the Shannons collectibles have dropped about 10 per cent since the global financial crisis. "But unlike the muscle cars, the European cars are in a less speculative area," he says. "We sell passion and hobbie cars, we don't sell the A to B cars."Selby says the market still has some way to go before it is fully recovered. "What you'll find is that once confidence returns to real estate and sharemarket, things will pick up," he says. "The stock that is there isn't moving really quickly but it is moving." He says the only people who have survived the shakeout unscathed are seriously rich collectors who have been able to hang on to their cars. "There have not been any firesales," he says. Tomorrow's highly collectible car could be sitting in your garage. If one of the original Australian muscle cars from the 1960s or 1970s are out of reach some later model cars have collector potential. And you might already be driving around in them.Early examples of the humble Ford Fairlane, Valiant Pacer and Safari wagons and various Falcons from the early 1960s like the XK and XL are becoming more desirable. Prices can start from as low as $10,000, rising up to $30,000 low-mileage mint condition locally built Aussie cars.Even the humble Holden Torana sedan and hatch are now considered collectible with growing interest in original Torana SL and SS hatchback with its "hatchback hutch" portable tent from 1976 to 1978. Very few were made and carsguide has heard of one country NSW collector who found one in mint condition, including the tent, for $15,000.Some of the older Subarus, Mazdas and Hondas are even worth a look. Early Honda Civics are relatively cheap but if you're after the S600 or S800 sportscars - if you can find them - expect to pay top dollar. The same goes for some of the older rotary-engined Mazdas. Some of the first MX5 sportscars are now considered collectible too. Early examples of Subaru's Liberty GT, if they aren't bastardised with big wheels, garish interior gauges and oversized exhausts, plus the quirky looking SVX also have collector potential.European cars like the Saab's 900 series hatch, particularly the Aero models from the early 1990s, have strong reputations and the Pininfarina-designed Peugeot 406 coupe is something of a sleeper. Cars like the Morris Minor Traveller, Ford Capri RS3100, Datsun 240Z and 260Z and Volvo 1800ES are out there but are becoming harder to find. Various older Mercedes-Benzes, like the 1970s 280SE and the 280SL Pagoda are popular but the Pagoda is rare today and commands big prices.If all else fails early versions of the Citroen DS, Mini Cooper, Alfa Romeo GTV, MG and Triumph, some Jaguars, the BMW 2002ti and 6 Series and early E39 3 Series iS models. Shannons' Christophe Boribon reckons later model limited-edition cars like the Mitsubishi Evo, the original R32 GTR Skylines, Toyota MR2, original two-door Subaru STis and the Mazda RX7 Series 8 have potential as tomorrow's classics.Further up the scale Boribon says the Audi RS4 wagon, BMW M3 CSL and even the Mercedes-Benz AMG65 SL Black Series are likely to become more desirable as the years pass. "It really comes down to whether they're limited edition models though," he says. "It's the same for Ferraris and Lamborghinis; they have to be limited edition models."Boribon, Selby and Sabine agree that a car's rarity and its condition are paramount for true collectors. "An original condition car, whatever it is, will fetch a good price," Sabine says. There are few specifics about what will, or won't, become a collectible, he says. If very few examples of a particular model exist and its in original condition, it can be more desirable, he says."But if you absolutely like the car you're looking at then I'd say buy it," he says. "Life is an experience. "The one tip is to buy the best car you can afford, whatever it is." However, he has a word of warning for those expecting their classics to drive like a 2009 model. "They often don't have power steering, handle particularly well or have the creature comforts you get today," he says.

This year's Muscle Car Masters at the Sydney raceway on September 6 will celebrate the birth of one of our muscle legends: the Ford Falcon GT-HO. Allan Moffat and John French - drivers of the first ever Ford Falcon GT-HO to win a race - will be on hand to get reacquainted with the machine that brought it home for them at Sandown in 1969.They will be joined by other racing legends, including Colin Bond, Fred and Chris Gibson, Harry Firth, Leo Geoghegan, Alan Grice, Kevin Bartlett, Jim Richards, Barry and Glenn Seton, John Harvey, John Bowe, Murray Carter, Phil Brock and Bob Holden.Based on the road-going XW Ford Falcon GT, the GT-HO was released in August that year and given just one task … win Australia's most grueling touring car event, the Bathurst 500 mile production car race. It delivered the goods, and then some, winning races and championships throughout the early 1970s.The Muscle Car Masters event is a celebration of Australia's rich motoring heritage: the cars, the drivers and a whole era of motoring, Moffat says. "The 1960s and '70s were defined by cars that you could race on Sunday and buy in the showroom on the Monday - Muscle Car Masters is no different."Restored race vehicles and road registered examples will be at the event for all to see," Moffat says. The celebration at Eastern Creek Raceway will include the GT-HO's legendary rivals - the Valiant R/T Charger and Holden's Monaro, Torana XU-1 and Torana A9X, among a field of other muscle cars.The main event on the day will be an international face-off between Australian and New Zealand, while other features include the Biante Touring Car Masters, New Zealand Central Muscle Cars, Group C and Group A Bathurst touring cars and Historic Touring cars from the 1960s and '70s.The day also includes a show and shine display of Aussie muscle cars and … of course … a homage to the legendary Ford Falcon GT-HO.For further information visit www.eastern-creek-raceway.com

The 1996 Chrysler Neon was one of 118 vehicles to score strongly in the Monash University Accident Research Centre crash rankings survey. "It shows that secondhand car buyers do not have to limit their options when it comes to buying a safe car," MUARC researcher, Dr Stuart Newstead, said. The study assessed 239 cars, commercial vehicles, vans, people movers and four-wheel drives from 1982 onwards. The data was compiled from 3.6 million vehicles and 740,000 injured road users involved in crashes from 1992-2007. Dr Newstead said the results show that buyers can choose safer cars across most market segments. "There is a safer choice for every driver, from small cars to larger cars and commercial vans," he said. Apart from the Neon, the Ford Focus, Volkswagen Golf, Mazda MX5 and Peugeot 307 rated well among small cars. Not surprisingly, vehicles built before 1995 dominated the worst performers. "These vehicles generally do not have the safety features of some of the more modern cars, like airbags and stronger bodies," Dr Newstead said. "Generally, the newer the car, the better the protection for driver and passengers." Among the worst performers were pre-1995 versions of the Hyundai Excel, Mitsubishi Lancer and Nissan NX. Some pre-1995 micro cars, commercial vehicles and four-wheel drives also rated poorly. The MUARC study ranked older versions of the Daihatsu Mira, Subaru Sherpa, Suzuki Alto, Suzuki Carry van and Daihatsu Rocky as very poor. Other models that scored poorly or very poorly included the Daihatsu Mira built between 1990 and 1996 and the Nissan Pintara built between 1989 and 1992. Many late-model Australian-made cars scored above average but European and Japanese cars dominated the best performers. Ford Falcons and Holden Commodores from 2002 to 2007 achieved good rankings but older Saabs, Mercedes-Benzes, Audis and BMWs have excellent crash protection. The ratings are in their 17th year and vehicles have been rated by both their occupant protection and impact on other road users, including cyclists and pedestrians. Dr Newstead urged car buyers to make safety a high priority when choosing a second-hand vehicle, regardless of budget. The RACV's Used Car Safety Ratings can be found at www.racv.com.au BEST PERFORMING VEHICLES Small cars Chrysler Neon (1996-09) Ford Focus (2005-07) Mazda MX5 (1998-2005) Peugeot 307 (2001-2007) Volkswagen Golf (2004-2007) WORST PERFORMING VEHICLES Small cars Hyundai Excel (1990-1994) Hyundai Accent (1995-2000) Mitsubishi Lancer/Mirage (1991-1992) Nissan NX/NX-R (1991-1996) Subaru Impreza (1993-2000)

...the PT Chrysler a thing of beauty or a hearse gone wrong?A day in the life of a road safety expert...and a program in Victoria shows teenagers the traumatic effect of road accidents.For all this and a lot more, listen to the podcast above.

And like the ultimate survivor - the cockroach - it now seems that anything short of a nuclear holocaust will not be enough to put an end to the vehicle. All but dead and buried earlier this year when United States media outlets quoted then Chrysler president Tom LaSorda as confirming the end of production for the little sedan, the hot-rod look-alike bounced back this week with news that production would continue unabated.As happened to the previously-condemned Dodge Viper, the PT Cruiser has been spat out at the end of the Chrysler bankruptcy restructuring as a car with a future - and quite a past.Almost unchanged since its launch in 2000, more than 1.3 million PT Cruisers have been sold in 60 countries - including 7000 in Australia.Chrysler Australia spokesman Jerry Stamoulis says that while sales of the PT Cruiser have been "quiet" and "supply affected" recently the car will continue to be offered as part of the Australian model range."It is still a model we have demand for and we will continue to offer it," Stamoulis says. "We have been given no indication at this stage on what sort of supply we can expect but the news that the PT Cruiser will continue to be built is all good."In June only nine PT Cruisers were sold in Australia, compared to 41 for the same month the previous year while first half sales this year plunged to 49 against 191 for the same period in 2008."Our strongest interest is still from the small business sector where the car is still enough of an attention grabber to perform strongly as a mobile advertisement," Stamoulis says. "The Cruiser may be eight years old but the original design is still flexible enough to do duty as a functional sedan or a small delivery van."Stamoulis says there is also an extremely strong loyalty factor amongst original PT Cruiser owners. "We are now finding that people who bought the car when it was first released here are now coming back to upgrade to a new car. The loyalty is amazing and that is also shown in the strength of the PT Cruiser owners clubs."There was no indication in this week's announcement of any styling or engineering updates for the PT Cruiser which will continue to be built at the Toluca (Mexico) assembly plant.The PT Cruiser is available in Australia in three specification levels - Grand Tourer, Limited and Touring with a single choice of a 1.5kW 2.4-litre four cylinder engine coupled to a four-speed automatic or five-speed manual. Pricing starts at $31,990 topping out at $37,690.

Chrysler led GM down the chapter 11 road to re-structuring after it could not meet earlier deadlines for extended US government funding. It is about to form a global alliance with Fiat which will result in a new company, called Chrysler Group LLC, after gaining approval from a bankruptcy court in New York. The new structure will include is operations in Australia, as Chrysler holds onto its Mexican, Canadian and overseas subsidiaries. "We are very pleased with today's announcement and the opportunities that it brings to our company. At this stage, It is too early to comment or speculate about how the integration with Fiat might apply in our Australia or New Zealand regarding all aspects of the operation including dealer body and distribution," says Gerry Jenkins, managing director of Chrysler Australia.            

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.

GM needed the support of 90 per cent of the bondholders to swing the deal – which would have given them 10 per cent of the auto giant — but reports overnight suggested acceptance was in the ‘single digit’ region.The failure was a serious setback for the carmaker, after United Automobile Workers union leaders recommended their members agree to a deal that would slash GM’s debt to a retiree health care trust fund.Under that arrangement, GM would have given the UAW 17.5 per cent equity in a restructured company, later rising to 20 per cent if the share price improved, with the addition of another US$6.5 billion worth of preferred stock and a US$2.5 billion note.It is expected that GM will make a move before the June 1 deadline for restructuring.         

Actually, it's not a toy because it's an exact scale replica of one of the most memorable cars of my childhood.It's the Ford 'Super Falcon' raced by Ian 'Pete' Geoghegan in the early 1970s.The original raced towards the end of a golden era in the Australian touring car championship, running up against Allan Moffat's Coca-Cola Mustang, Norm Beechey's Monaro and Bob Jane's brutal Chevrolet Camaro.I have 1:18th scale replicas of those cars as part of my car collection.The difference in the Super Falcon is the amount of detail in the latest product from Classic Carlectables which, together with Biante, is tapping a rich vein of Australian motoring history. Both brands do a lot of work on current V8 Supercars, but more and more people are turning to everything from Classic's replica of Allan Moffat's 1978 Bathurst Falcon to the 1971 Valiant Charger.The cars look great, and more as I remember them than the way they look in 2009, and the detail work is incredible on everything from dashboards and seats to engines and suspensions. They are way, way, way down the road from anything in the Hot Wheels lineup.A model from Classic Carlectables is not cheap, and you have to go to their website or a specialist shop, but they are well worth the investment.

The smallest of the 'Big Three' automakers in the USA will go to court early next week to begin the next stage in its life after a small group of shareholders rejected a GM-style restructuring plan to ensure American government support to get it through the global economic crisis. The move will have minimal impact in Australia, as Chrysler Group is profitable and actually growing its market share despite the local showroom downturn. Further into the future there is likely to be a liaison of some sort with the Fiat distributor, Ateco Automotive. "For today, it's definitely Chrysler going forward," says the head of Chrysler Group Australia, Gerry Jenkins. "Our customers have to know we're here and solid." Jenkins was briefed this morning on the new situation during a global conference with Chrysler headquarters in Auburn Hills, a suburb of Detroit, and says he is pumped. "Today it is clear what strategy we're going to embark on and who our partners will be and what the company is going to look like. We're focussed on what the future of Chrysler will look like," he says. The Chapter 11 move comes after months of speculation about the total collapse of Chrysler. It also comes as the latest development for a company which has bounced from drama to drama over more than 25 years, including a variety of alliances and links with everyone from AMC to Mitsubishi and Daimler. The German deal promised the most, and was promoted as a 'merger of equals' including the DaimlerChrysler name, but could not survive deep cultural differences between the companies and the financial difficulties of Chrysler's operations in the USA. Jenkins says Chapter 11 is the best way for Chrysler to move forward and that the company is taking an accelerated form of the American financial protection, which could allow it to re-emerge within 30-60 days under a new structure. "Effectively we hit the ground running," he says. Fiat has welcomed the new development and, like Chrysler, can see the synergies going forward. "This transaction represents a constructive and important solution to the problems that have plagued not just Chrysler in recent years, but the global automotive industry as a whole," says the CEO of Fiat Group, Sergio Marchionne. "Our goal since we first entered discussions with Chrysler nearly a year ago was to leverage the strengths of both companies to yield the scale, efficiencies and cost savings necessary to create two stronger automakers able to compete more effectively on a global scale. This transaction is an important step toward achieving this objective."