Holden Cruze News

Fast forward. The year is 2020. The last Falcon left the production line over four years ago and it was joined by the last Commodore not long after. Toyota's local operation has also been looking pretty shaky, because the departure of Ford and Holden from the production scene has driven up the cost of parts. Toyota is hanging on, thanks to the extra exports it picked up from Holden - but by the skin of its teeth.No more Falcons or Commodores of course means no more utes either, V8 or otherwise - what's a buyer supposed to do? It's time for a reality check. The missus isn't happy because the beaut VF you bought six years ago has been playing up and will need updating sooner than later (tomorrow if the ball and chain has her way).The question is: what to buy? A hybrid or an electric vehicle maybe or perhaps one of those new-fangled hydrogen jobs - they're supposed to be pretty good on gas? At this point in time, the figures suggest your next car will probably be a Corolla or a Mazda3, because as much as we profess to love them buyers have been deserting the big family six for years while sales of smaller cars and SUVs have continued to rise. That's on paper.But can you really see some big boofy bloke stepping out of an XR6 or V8-powered SS Commodore into one of these econo-boxes? The clock is ticking and it is time to choose. The top 5 selling vehicles in Australia as we speak are: the Toyota Corolla, Mazda3, Hyundai i30, Toyota Hilux and the Holden Cruze in that order. Forced to choose which one what would you buy if you had to for out for a new set of wheels tomorrow? Will it be one of these vehicles or perhaps a WRX, an EVO or something else with a bit of street cred? 

Holden may have started out making horse accessories in 1856, but we all know it as the manufacturer of many of Australia's favourite cars.  From the 48-215 unveiled by PM Ben Chifley in 1948, to today's VF Commodore and JH II Cruze, 'our' Holden is a significant piece of Australia's industrial history. With today's announcement that Holden will cease local production in 2017, we've put together a mega galley of images to commemorate the brand's colourful manufacturing past; including family sedans and wagons, working utes, luxury Statesman and Caprices, and track-bred high performance models.  This reporter is on Twitter: @Mal_Flynn  Holden milestones1948Prime Minister Ben Chifley unveils the first Holden car, declares “she’s a beauty”. More than 18,000 orders are held before the 48-215 “FX” Holden goes on sale. Some customers sell their place in the queue for £100.1954One in three cars on the road is a Holden.1958One in two cars on the road is a Holden.1960The first export of left-hand-drive Holden vehicles begins with a small shipment of cars to Hawaii.19621 millionth Holden sold (EJ Special sedan, Oct 1962).1964Holden employee numbers peak at 23,914 across seven facilities in Queensland, NSW, Victoria and South Australia.19692 millionth Holden sold (HK Kingswood, March 1969).19743 millionth Holden sold (HQ Kingswood, June 1974).1978Holden celebrates 25 years of continuous sales leadership.19814 millionth Holden sold (VC Commodore, June 1981).19905 millionth Holden sold (VN Calais, August 1990, more than twice as many as any other Australian built car at the time).1991Japanese car-maker Toyota beats Holden and Ford to market leadership for the first time in Australia.20016 millionth Holden sold (VX Commodore SS, June 2001).2002The last year Holden led the Australian new-car market.2004Holden produces 165,000 vehicles (the most in its modern era), almost matches the 1963 peak of 166,274. Factory worker numbers in 2004: 7350.2005Holden’s biggest export year: 60,518 cars were shipped, mostly to the US and the Middle East.20087 millionth Holden sold (VE Commodore LPG, Aug 2008).2011After 15 years as Australia’s favourite car, Holden Commodore sales are overtaken by the Mazda3 from Japan. Automotive historians say it is the first time since WWI an imported car has led the new-car market.2013Toyota Corolla on track to become Australia’s top-selling car for the first time.Only five out of 100 new cars sold in Australia is a locally-made Holden.Holden is overtaken in some months by Mazda, Hyundai and Nissan.After several redundancies and a three-year wage freeze, Holden factory worker numbers fall to 1760.Despite a record new-car market, Australian vehicle production falls to its lowest levels since 1958.Holden is on track to export just 14,000 of the 84,000 cars it will make locally. 

Holden says it’s as True Blue as football, meat pies and kangaroos -- but a secret document has revealed the cars it plans to build with more than $275 million taxpayer dollars will be less Australian than a Toyota Camry.The local content of the latest Holden Commodore has already dropped to 50 per cent, while less than one-third of the Cruze small car is made from Australian-sourced components, even though Holden has received $1.8 billion in government assistance over the past 12 years.By comparison, the local content of the Toyota Camry and Ford Falcon sedans are 70 per cent, according to figures supplied by the car-makers.Holden’s confidential plan to increase the foreign parts in its cars will likely come as a kick in the guts to local automotive parts suppliers who today (Monday December 2) will hold a rally at Adelaide’s Stamford Hotel before lodging their submission to the Productivity Commission.“The Productivity Commission must understand that this isn’t just about economics, it’s about families and communities,” said John Camillo, the SA secretary of the Australian Manufacturing Workers Union.The Federal Coalition Government has postponed any new taxpayer assistance deals with car makers and automotive component suppliers until after the Productivity Commission delivers an interim report on the industry by December 20 and a final report on March 31.Critically, this is after a global General Motors deadline to allocate investment in future models and it is feared the fate of Holden's factory may already be decided.Holden yesterday declined to comment on its future model plans. But the SA Government “Cabinet In Confidence” document -- partly funded by and compiled with co-operation from Holden -- says there will be a “significant reduction” in locally-made components for the two cars General Motors plans to build in the future.“The Next Gen plan sees two vehicle ranges with the majority of components for each being imported,” says the report prepared by University of Adelaide Professor Goran Roos. "Accordingly the Next Gen plan would see a significant reduction in the Australian-based suppliers to GM Holden.”The report contradicts Holden’s public claim that if its factory and the jobs of its 1760 production line workers are saved, Australian component manufacturers will also benefit.Holden boss Mike Devereux says the “ripple effect” of a shutdown would be felt across the parts supply industry -- and up to 7000 jobs in South Australia and up to 18,000 in Victoria would be lost.But, in fact, if General Motors receives the funding boost it needs to continue production in Australia, some local parts suppliers are likely to lose their contracts with Holden and may themselves face a shutdown.Critically, even if local parts suppliers can match or undercut the price of foreign rivals, they are unlikely to be awarded the business because of General Motors’ global parts supply contracts.“Even if an Australian-based supplier could offer a cheaper alternative for (Holden) locally it would not be adopted as it could interfere with the broader global GM supplier relations,” the report says.Holden’s decision to increase the foreign content of its “Next Generation” cars now risks bringing Toyota and the rest of the Australian automotive manufacturing industry down with it.If Holden weakens the parts supply base, the remaining component manufacturers may not have the economies of scale to help Toyota find the $400 million in annual savings it needs to survive.Toyota Australia says it must slash $3800 -- or about 15 per cent of the production cost -- from each car it builds if it is to retain the Middle East export deal that is critical to keeping its Altona factory running.Only 35,000 Camry and Aurion V6 sedans are sold locally each year; about 70,000 Camrys are exported. Toyota Australia says it must build a minimum of 80,000 cars a year to remain viable.In Tokyo last week, the executive vice president and member of the board of Toyota, Nobuyori Kodaira, said local parts suppliers were key to the survival of Toyota’s Australian operations.“In Australia currently we are having a difficult situation,” said Mr Kodaira. “Because this is a business we need to have economic viability.“In order to continue the manufacturing there, we are cooperating with our suppliers on activities such as rationalisation and also cost reduction. We definitely think those activities are necessary.”A Toyota insider told News Corp Australia: “If Holden goes, we’ll be right behind them. It won’t be announced straight away … but we’ll be gone too.”Toyota Australia executives are still fighting hard to save the Altona car assembly line and engine plant, by trying to find new ways to cut production costs.In Tokyo last week a Toyota Australia executive said a decision about Altona would come from Japan by mid-2014. But representatives for the company have since told News Corp Australia a deadline has not been set, and it may be in the second half of 2014.In the meantime about 2000 of Toyota’s 2500 factory workers at Altona have been asked to vote on an amendment to their workplace agreement that cuts bonuses but improves shift flexibility.Unlike Holden workers -- who in September voted for a three-year wage freeze if production is secured from 2016 to 2022 -- Toyota factory workers will get to keep two longstanding pay rises due next year: a 3.25 per cent increase in April and 2 per cent in September.The Toyota workers must cast their vote by Friday the 13th of December. If Toyota were to close its Altona facility, it would likely happen in 2018, at the end of the next Camry model cycle.In August this year, Toyota Australia announced it had received $30 million in government funding to go towards an update for the Camry to be built at Altona from 2015 to 2018. There is no suggestion this deal is under threat.As reported by Carsguide last month the SA Government briefing paper forecast the possibility of a Holden shutdown in 2016, the same year as Ford. The secret document also said Holden’s factory shutdown could be delayed until 2018 -- even if it did not proceed with the two new “Next Generation” models -- by extending production of the current Commodore and Cruze."Our key working assumption is that manufacturing/assembly of mass-market vehicle platforms at GMH is not sustainable,” the report said.“It is therefore likely that vehicle assembly will eventually cease: 2016 being the earliest likely date.”The report also found Holden exaggerated its sales forecasts for the two new cars, which means State and Federal Governments would again be threatened with a shutdown at a later date.“The sales assumptions of the Next Gen case err towards the optimistic,” the report says. “(Holden assumes) all unit sales of the current Commodore sedans migrate to the new proposed front-wheel-drive large vehicle, and that all current unit sales of the Commodore wagon migrate to the Next Gen small vehicle wagon.“The case assumes an overall increase in sales of small vehicles … in the most cost competitive segment of the market. We believe that these assumptions have greater downside risk than upside risk,” the report found.Carsguide understands that under the “Next Generation” plan Holden expects to build just 65,000 cars per year at Elizabeth, down from approximately 84,000 this year and a peak of 165,000 in 2004.Holden has received more than $1.8 billion in taxpayer support over the past 12 years, and in March 2012 had signed a deal with the former Federal Labor Government for a further $275 million to build two new models.But since Ford announced in May this year that it will shut its Australian factories in 2016, Holden has asked for a funding increase because it says economic conditions have “changed dramatically”.This reporter is on Twitter: @JoshuaDowling 

Having been born in England, raised in Canada, and starting his career in Detroit -- before doing a stint in the Middle East ahead of his Holden assignment -- you’d think Mike Devereux had seen it all. But even Devereux was not prepared for the first question from the Holden factory floor when he arrived three and a half years ago.Having replaced Alan Batey and Mark Reuss -- the two successive executives who rescued Holden from closure in the grip of the Global Financial Crisis -- Devereux was revving up the workforce in an Anthony Robbins-style motivational speech. There were tough times ahead, he warned. Improvements needed to be made in quality (the Pontiac version of the Commodore sold between 2007 and 2009 in the US was not Holden’s finest hour, especially when judged against global standards).But most important of all, Holden needed to find ways to become more cost-efficient while building better cars, a challenging double act at the best of times -- and Holden was facing the worst of times. It took Devereux no time at all to figure out that Australia is the most competitive new-car market in the world, with more than 60 brands competing for 1 million sales. (In North America 38 brands compete for their share of 15 million sales).As Devereux finished talking the audience through his vision for success he figured it was a pretty good opening address, all the key points were hit. As part of his direct yet approachable management style that would define his time in the Holden office, Devereux then took questions from the floor. “When are we going to get Christmas cakes back?” a worker asked.Not sure quite what the worker meant, a minder whispered in Devereux’s ear, explaining that Holden workers used to get a Christmas hamper each year but they turned to crumbs in the GFC. Holden was on the brink of extinction and someone on the factory floor wanted cake, Devereux thought to himself. “Let me get back to you on that one,” he said, before asking if anyone had any manufacturing questions.It was a telling insight into just how shielded the workers -- and the rest of Australia for that matter -- were from the grim realities Holden was facing, despite the redundancies leading up to that moment, and the hundreds that would follow. The possibility of life without Holden seemed impossible because it had been bailed out so many times before. It’s not that Holden is too big to fail, it’s too iconic. Or so people naively believe.Car companies are brutally pragmatic these days. All major brands have shuttered dozens of under-performing or unprofitable factories across Europe and the US in the past four years alone. Almost as quickly, they’re replacing them with factories in countries with low-cost labour, primarily China, Thailand and other parts of South-East Asia where cars can be built for a quarter of the cost of Australia.From the moment of that first question, Devereux realised he had a job on his hands to educate his workers -- and the rest of Australia -- about the true challenges facing the car manufacturing industry. What we got was one of the most open and out-spoken car executives Australia has ever seen, traits which only seemed to amplify as time passed.In one of his first media interviews Devereux was asked if he was sent here to shut Holden down. Still getting to know the joint, he said he’d rather not answer that question right now. But those in the room were left with the distinct impression the end was near. What happened after that is unclear. But what we do know is that Mike Devereux very quickly fell in love with Holden, its workers, their passion and, most of all, their capability to design and engineer cars from the ground-up on a fraction of the resources in Detroit or China.Devereux became so intoxicated with the place he is restoring a 1962 EK Holden. His predecessor Mark Reuss also restored a late 1950s FC Holden and took it back with him to Detroit. It’s now in the GM museum, the only Holden represented among hundreds of GM cars from around the world.There is no doubt that passion has helped drive Devereux’s negotiations with State and Federal Governments for more taxpayer assistance. Devereux has pushed for the manufacturing future of Holden against all odds -- and sound economics -- pulling on any lever that might get a deal over the line. But the grim reality is that Holden loses money on every car it builds locally. Over the past 12 years it has produced, on average, a paltry $28 million profit from an average annual turnover of $5.5 billion.When you consider that the balance sheet looks like that after more than $1.8 billion in taxpayer funding over the same period, you can see why Holden cut the Christmas cake. Even if Devereux were able to get a deal done (“governments rent our industry to create jobs, that’s the reality,” he says) it’s worth noting at this point that the Holden taxpayers are trying to save is not the Holden Australians have known to grow and love.The two new cars Holden will build if the factory continues beyond 2016 will be “global” vehicles designed and engineered offshore and made with more foreign parts. In other words, despite the Holden line that local manufacturing will help local suppliers, the next car it calls the “Commodore” will be less Australian than a Toyota Camry.The current Commodore has just 50 per cent local content, and it was designed here. The Cruze small car has just 30 per cent local content. The Toyota Camry has 65 per cent local content (based on figures supplied by the car makers). The Ford Falcon, incidentally, tops the lot with 70 per cent of its parts sourced locally.So, will Holden manufacturing stay or will it go? The odds of it staying, sadly, are now extremely slim. If General Motors was confident Holden's manufacturing operations could survive, they would let Devereux finish the job and bed it down. Most car executive appointments run for three years; Devereux was scheduled to stay for five. His leaving early can only mean one thing. Holden’s manufacturing operations won’t be far behind him.This reporter is on Twitter: @JoshuaDowling 

New-car buyers hit the brakes in September and another 1.1 million-plus annual sales record is now under threat. Industry analysts are trying to determine what caused the September slowdown after six of the top 10 brands posted sales slides and the overall market dropped by 2.1 per cent to 92,662 deliveries compared with the same month last year.The last time the Australian new-car market slowed dramatically was in December 2011, when sales fell by 4.8 per cent after floods in Thailand and a catastrophic tsunami in Japan earlier that year severely restricted vehicle production.The weak September result means market growth has slowed to 3.3 per cent year-to-date, with 849,944 deliveries since January, putting another record annual result in doubt.After last year’s all-time high of 1,112,032 sales the new-car market was up by 5 per cent in the first half of this year.Car executives are trying to determine if the market is still experiencing the flow-on effect from the uncertainty caused by sudden changes to Fringe Benefits Tax rules before the Federal election -- or if the election itself did most of the damage.New-car sales dipped in the lead-up to four of the last five Federal elections, industry figures show. "The announcement by the Coalition to return to pre-July FBT arrangements has been welcomed by the industry," said Tony Weber, the chief executive of the Federal Chamber of Automotive Industries."We anticipate the market effect of this announcement will see positive growth throughout the rest of the year. Consumers can be confident that the recent FBT issue is now behind us."The September slowdown still came as a surprise given that interest rates fell to a new low and improved car affordability.Sales in the main mining states -- Queensland, West Australia and the Northern Territory -- were down by between 5.5 and 8.2 per cent, but sales of utes were still strong, with three workhorses finishing inside the top 10. The Toyota HiLux was the second-biggest seller in September while the Nissan Navara and Ford Ranger placed seventh and eighth respectively.Meanwhile the Toyota Corolla has developed a clear lead in the race to become Australia’s top-selling car for the first time. The Corolla has now built a gap of 1258 sales -- its largest to date -- ahead of two-times winner, the Mazda3, in the year-to-date tally (Corolla: 32,039, Mazda3: 30,781).The Mazda3 led the market at the start of the year and seemed certain to collect its third win in a row, but the Corolla overtook its fellow Japanese import as Australia’s favourite car in April, June, July and September.In another upset the Volkswagen Golf outsold the locally-made Holden Cruze by one delivery, with the Holden only just managing to stay inside the top 10 after a disappointing month.Holden posted 1851 Cruze deliveries (compared to the Golf’s tally of 1852) which was down 5 per cent on the same month in 2012, and down by 37 per cent compared to September 2011.The Golf’s result was buoyed by $22,990 drive-away promotional pricing but it also shows that Volkswagen appears to have bounced back from the recall controversy earlier this year. Last month’s result was strong for the Volkswagen Golf but still nowhere near its all-time high figure of 3337 sales set in October 2011.The homegrown Falcon and Commodore posted modest sales recoveries, but both were well short of their former glory. Holden again delivered more than 2800 Commodores (up 13 per cent) while Ford shifted 846 Falcons, which was down 28 per cent compared to the same month last year but an increase of 47.6 after the previous month’s all-time low.The reigning champion Mazda3 had a big sales slide in September after the company brought its annual sale forward a month. Toyota is on track to post its 11th year as the top-selling brand with 158,793 sales year to date, ahead of second-placed Holden (81,904). In third place Mazda (78,252) still has a comfortable margin over fourth-placed Hyundai (72,599) and fifth-placed Ford (64,964).Nissan sales continued to slide for the third month in a row but its results of 59,460 so far this year is up by 1.2 per cent after benefitting from strong gains earlier in the year. Nissan Australia is looking for its third boss in less than two years after Bill Peffer announced he was leaving the company.Top 10 brands in September 2013Toyota 17,492 -- up 1.1 per centHolden 9614 -- up 7.4 per centHyundai 8803 -- up 12.6 per centMazda 7615 -- down 24.6 per centFord 7505 -- down 3.3 per centMitsubishi 5993 -- up 3.3 per centNissan 5556 -- down 10.8 per centVolkswagen 4466 -- down 9.8 per centSubaru 2752 -- down 14.3 per centKia 2534 -- down 7.7 per centTop 10 cars in September 2013Toyota Corolla 3443 – up 9.9 per centToyota HiLux 3340 – down 3.9 per centMazda3 3052 – down 28.6 per centHolden Commodore 2865 – up 13.3 per centHyundai i30 2675 – down 14.9 per centToyota Camry 2223 – down 1.9 per centNissan Navara 2275 – up 25.3 per centFord Ranger 2037 – up 13.1 per centVolkswagen Golf 1852 – up 8.1  per centHolden Cruze 1851 – down 5.1 per centSource: Federal Chamber of Automotive Industries, VFACTS.This reporter is on Twitter: @JoshuaDowling 

As the Australian car sales race heads into the final quarter lap for 2013, most eyes are on what will be the top car. But further back in the field, there’s been a big improvement for several European models, which are posting sales lifts of up to 1000 per cent as a result of aggressive price cuts.Leading the charge is Fiat’s 500 which was slashed more than $10,000 in June, and now starts at just $14,000. This resulted in 310 buyers last month, compared to just 86 before the price drop. The little Italian car has increased in sales at the rate of 850 per cent every month since June, in a market that shrank by almost 15 per cent.Fiat as a whole is benefiting too, with the 1765 sales so far this year being more than a 500 per cent increase over the 328 at this stage in 2012. While the Fiat 500 is attracting customers, established competitors like the Holden Barina, Nissan Micra, Suzuki Alto and Swift and Toyota Yaris have meanwhile seen a decline in sales year-to-date.This means that for the first time, the 500 is outselling more than half its competitors. Meanwhile, Alfa Romeo’s small models, which also received price cuts recently, have returned positive results – albeit on fairly low numbers. MiTo has doubled in sales in the premium light car segment from 23 to 45, while its larger sibling, Giulietta – in a field that includes the Toyota Corolla, Holden Cruze and Mazda 3, found 324 new homes compared to just 88 before the new pricing strategy.The local HQ says the surge in sales is due to sharper pricing and specifications and more dealership support. “The success is a result of a combination of factors: an expanded and engaged dealer network, streamlined vehicle spec levels and sharper pricing – as well as strong and smart marketing support,” Fiat and Alfa Romeo spokesperson Karla Leach says.With the international launch of the new Alfa Romeo 4C sport car this week – estimated to cost somewhere around $75,000 when it arrives here -- the Italian brand is buckling up for the challenge of luring customers with a few more dollars to spend. Leach says Fiat and Alfa Romeo have serious intentions to keep strengthening their position here. “We have strong ambition for the continued growth of these brands in Australia,” she says. But it’s not just Italians aggressively tackling the entry level market.Renault last month introduced the cheapest Clio ever, firmly cementing the French brand into the budget light car segment with an entry-level price of under $17,000. Keen to be seen as a viable alternative, Renault has hit hard at competitors, offering five-year, unlimited kilometre warranty and fixed price servicing. Renault Australia managing director Justin Hocevar said at the Clio unveiling last month that the brand has high expectations of the car.“We have a fantastic value proposition in terms of a beautifully designed vehicle with high levels of personalisation, at an extremely competitive price.” he said. Traditional options like Mazda, Hyundai and Toyota still dominate the light and small car segments, but European rivals are fighting hard to gain credibility as mainstream brands.The big winners are the buyers, who may now afford to consider Italian design, French flair or German precision for the same price as more established mainstream manufacturers. The exception to the success story is Opel, which failed to accrue enough buyers in its very short stint in Australia. Despite competitive prices, the German brand disappeared in August, posting less than 1,000 sales this year between the Astra and Corsa small cars combined. 

That might sound like a silly answer to a serious question, but it's the best solution for optimum shopping in the back end of 2013. You see, Korea now makes better Japanese cars than the Japanese. And that's a fact.There are some exceptions, and some categories where the Koreans are still getting a foothold, but a Hyundai i30 or a Kia Cerato is a far better choice than a Mitsubishi Lancer, a Kia Sportage makes more sense than a Honda CR-V, and a Hyundai Santa Fe is much better buying than a Toyota Kluger.This Korean tide has been rising for a while, but it's now filled showrooms with quality cars that are backed by industry-leading five-year warranties with capped-price servicing costs. The two Korean juggernauts are also serious about tuning their cars for Australian drivers and roads, which is becoming a serious selling point and also a battlefield for bragging rights between Hyundai and Kia.Even Daewoo, which was absorbed into the Holden empire to provide cut-price cars such as the Barina and Captiva, is now doing a better job as the engineering and design expertise from Fishermans Bend is absorbed deeply into the Korean content on the cars. And don't forget that the Aussie-made Cruze compact, despite its local tweaking and assembly in Adelaide, began its life at the GM Daewoo division in Korea.Without getting into a history lesson, the seismic shift between Japan and Korea comes down to three things. First is the deep-seated rivalry between the two countries, second is the well-lit path to success blazed by Japanese makers including Honda and Toyota, and third is the Global Financial Crisis. How's that?Well, nothing makes a Korean businessman happier than beating a Japanese rival, even though the Japanese were the first Asian companies to achieve success in motoring thanks to cars like the Toyota Corolla, Honda Civic and the classy machines that followed. These days, the Nissan GT-R is a legend and the Toyota LandCruiser is an icon.So the Koreans assimilated the Japanese business model for cheap, reliable and sensible cars - think of the Hyundai Elantra and Kia Rio - and then found a way to build them with similar quality at a lower price. There was a time when the cabins of Korean cars stank - because of the 'release agent' applied to plastic parts - and the assembly was slipshod and downmarket, but not today. They also have aircon with Japanese efficiency, always a pointer to intelligent engineering in Australian weather.But it's the GFC which has made the biggest difference. While the Japanese brands panicked, cutting costs and stretching the lifetimes of their cars, the Koreans accelerated their development plans, brought new models, and invested in their dealerships in Australia.The results are obvious now as many Japanese cars - we're talking about the Honda Civic and Subaru Impreza - have lost their previous edge, while others - think Mitsubishi Pajero and Subaru WRX - are way overdue for a remake.In the meantime, Hyundai is now plotting a move upmarket with its luxury Genesis models and Kia is setting a global standard for quality styling thanks to its recruiting of design genius Peter Schreyer. Best of all, when you're buying, it's the driveaway pricing that's been a Korean signature since Hyundai blazed that trail in the 1990s to get nervous shoppers over the line.This reporter is on Twitter: @paulwardgover 

The record pace of the new-car market stalled in August with an estimated $160 million worth of sales wiped from the charts following the Rudd Government’s changes to Fringe Benefits Tax announced in July. Official figures released today by the Federal Chamber of Automotive Industries show the market slumped by 0.2 per cent to 93,336 registrations for the month and is now only up by 4 per cent year-to-date (to 757,282); it had been growing by 5 per cent in the first half of the year prior to the FBT overhaul.The car industry was worst hit in Prime Minister Kevin Rudd’s home state of Queensland, where sales slumped by 3.5 per cent, and in West Australia which was down by 8 per cent, the detailed data shows.“Unfortunately, but not unexpectedly, the FBT change is impacting on sales,” said the chief executive of the Federal Chamber of Automotive Industries Tony Weber. “This indicates consumers are having to stall or forgo their purchases of new vehicles.”Business purchases were down by 10 per cent compared to August 2012 and sales were expected to “continue to decrease through the rest of the year and into 2014, as the full impact on fleet sales works its way through the system,” Mr Weber said.“This is a disaster for the car industry, sadly our worst fears have come true,” said Leigh Penberthy, the president of the Australian Salary Packaging Industry Association (ASPIA).“The 0.2 per cent slowdown might not look like much but that’s a swing of 5 per cent, or about 4600 sales, because the market was growing until the FBT changes were announced,” said Mr Penberthy.With the average price of a new car costing $34,900, that means an estimated $160 million worth of new vehicle sales disappeared in August. “September is going to be worse, the forward orders just aren’t coming through,” said Mr Penberthy. “The industry is sitting on the edge of its seat waiting for the outcome of this weekend’s Federal election. People have lost their jobs for no real reason and it’s going to be difficult for the industry to regain its momentum.”The official August sales figures from the Federal Chamber of Automotive Industries confirmed that compared to the same month last year Ford sales slumped by 20 per cent, Holden sales dropped by 6 per cent and Toyota dipped by 1 per cent.The August tally for Australia’s three local car makers dropped by a combined total of 2500 deliveries. Ford scheduled 12 production down days in August and September to match output with demand as the locally-made Falcon fell to a new 53-year low of just 573 deliveries.Buoyed by the first new model in seven years the Holden Commodore posted a modest increase of 400 sales compared with the same month last year. But Holden had a higher internal forecast than the 2800 Commodores it delivered in August and Holden’s Cruze small car posted a 10 per cent sales decline.Only four of the top ten brands -- Mazda, Hyundai, Mitsubishi and Volkswagen -- had sales increases. The Mazda 3 small car posted its first monthly win since March this year but the Toyota Corolla still leads the year-to-date tally. Small-car buyers are set for a discount showdown between the two Japanese imports as Toyota races towards its first ever top-selling car crown in Australia while Mazda tries to make it three in a row. Sales of Nissan vehicles, meanwhile, continue to fall off a cliff. When it relaunched the Pulsar name Nissan said it would challenge the top-selling small cars on its way to becoming the top import brand overall.But Nissan, which had beaten Ford and Holden in February in the lead-up to the end of the Japanese financial year, posted a massive 26 per cent slide in August compared with the same month last year and the Pulsar is selling at a quarter of the rate of the Corolla and Mazda small cars.In other upsets, South Korean car maker Kia almost overtook Subaru and German car maker Volkswagen almost overtook Nissan. The car industry has been calling for a reversal of the controversial changes to the FBT rules on personal use of company cars ever since the Rudd Government made the announcement on July 16.The changes were supposed to help raise $1.8 billion towards the scrapping of the carbon tax. But it has since emerged Treasury and the Government had not done a proper analysis on the impacts of the changes -- and it now seems likely it wouldn’t raise the forecast $1.8 billion as buyers defer purchases or purchase cars through schemes not subject to FBT.Shadow Finance Minister Andrew Robb is due to meet with the car industry at Melbourne’s Etihad Stadium at 10am tomorrow (Thursday). Yesterday Opposition Leader Tony Abbott and Shadow Treasurer Joe Hockey issued a joint statement to the industry confirming that, if elected, they will abolish the Rudd Government’s FBT changes.Top 10 brands in August*Toyota 17,758 -- down 1.3 per centHolden 10,606 -- down 5.9 per centMazda 9825 -- up 27.8 per centHyundai 7808 -- up 1 per centFord 6222 -- down 20.2 per centMitsubishi 5626 -- up 38.1 per centNissan 4765 -- down 26.5 per centVolkswagen 4505 -- up 3.7 per centHonda 3304 -- down 14 per centSubaru 2881 -- down 10.1 per centTop 10 cars in August*Mazda3 4188 -- up 40.1 per centToyota Corolla 3681 -- up 25 per centToyota HiLux 2884 -- down 28 per centHolden Commodore 2809 -- up 15.4 per centHyundai i30 2552 -- up 20.1 per centHolden Cruze 2369 -- down 9.9 per centToyota Camry 2281 -- up 7.1 per centMazda CX-5 1914 -- up 14 per centToyota RAV4 1780 -- up 64 per centHolden Colorado 1717 -- up 8.6 per cent* Official VFACTS data from the Federal Chamber of Automotive Industries.This reporter is on Twitter: @JoshuaDowling 

The sharpest knife is wielded by Proton, whose Preve sedan is now the cheapest small car in the country. Proton marketing general manager Billy Falconer says the cut -- which amounts to a 15 per cent shave off the original price -- is a reaction to the aggressive discounting of rivals.The flip is the annual/15,000km servicing cost is now capped for the first five years or 75,000km, rather than the free servicing as previously. "In order to compete with all these offers, we have reduced the price for the Preve range, with the manual starting at just $15,990 driveaway and the CVT auto Preve from $17,990 driveaway for a limited time only," Falconer says.The Preve is the first Proton to earn a five-star ANCAP safety rating and comes with a five-year warranty. The Malaysian brand is relying on the improved safety and features -- all Preve models have 16-inch alloy wheels, Bluetooth and iPod connectivity, and controls for the sound system and phone mounted on the steering wheel -- to help boost sales.The company sold just 856 vehicles last year and is behind that number year-to-date with 353 sales to July. A new hatch and people-mover -- both built according to Proton's improved safety standards -- are imminent.Ford's Focus Ambiente is -- for now -- just $18,990 on the road, including free servicing for the first three annual/15,000km check-ups. Mazda's $19,990 deal on the Neo includes a four-year warranty and three years' roadside assistance. A Mitsubishi Lancer ES with a front and rear spoilers, side skirts and alloy wheels is available for $19,990 driveaway until the end the month.PRICE WARModel                                November 2012     NowCitroen C4                          $22,990                 $20,990Ford Focus                         $20,290                 $18,990*Holden Cruze                      $21,490                 $19,490Mazda3                              $20,330                 $19,990*Proton Preve                       $18,990*                $15,990*Mitsubishi Lancer                $19,990                 $19,990**denotes driveaway pricing

The recall is for a defect that means the Cruze’s supplementary electric vacuum pump could fail when the engine is cold, reducing the vacuum and undermining the brake system. The notice warns that this could pose a potential crash hazard.Holden says 11,480 of the JH Cruze vehicles with 1.4 litre turbo petrol engine and automatic transmission built between 22nd February 2011 and 8th June 2012 are affected."We've had one alleged report of a minor collision during a driveway reversing manoeuvre," Holden spokesperson Andrea Matthews says, adding there were no injuries. The 1.4-litre is just one of four engines in the Cruze line-up, which has sold around 45,000 cars over the time span covered by the recall.Holden is writing to owners whose cars are in the affected build numbers range from 6G1PD5E80BL518864 - 6G1PE6E8XCL661387, but advises that concerned buyers should contact their nearest Holden dealer.