Holden Epica News

With the first quarter of this century already over, we take a look back at the biggest mistakes made by car makers in Australia over the past 25 years.

An accelerating Korean auto industry is now within a car's length of equalling sales of our home-grown models.  According to the official car sales figures for October released last week Korean vehicle sales in Australia were up 80 per cent compared to October 2008 and up 23 per cent for the year so far compared to the same period in 2008.Sales of Korean-made cars (12,324) nearly equalled the total sales of all Australian manufacturers (12,822) for the month.  Nearly 20,000 more Korean-made cars have been sold in Australia this year than in the same time last year.  By comparison, locally-built cars are down by 24,594 units, a drop of 17 per cent.Hyundai is leading the way, recording its best-ever October result in Australia, up by 106 per cent over October 2008, and is our fourth biggest-selling carmaker behind Toyota, Holden and Ford.  It's not only Hyundai and Kia that are raising the profile of Korea.The Holden-badged models of Captiva, Cruze, Barina, Viva and Epica are made by GM-Daewoo in Korea. The Renault Koleos is made by Samsung in Korea and Ssangyong SUVs are from a Korean plant.  About 39 per cent of light cars sold in Australia, 27 per cent of small cars and 26 per cent of medium-sized SUVs - including Australia's most popular SUV, the Holden Captiva - are built in Korea.A Hyundai spokesman said: "We are now on the shopping list. There was a time when we weren't but we have won awards - such as the Carsguide Car of the Year in 2007 - which has made people really notice us.  We didn't take our foot off the accelerator when the recession started late last year.  We didn't reduce production and we didn't spend less on marketing. That worked in our favour because people saw us as being constant."Overall car sales in Australia were up in October for the first time in 16 months.  Improvements were across the board covering private, business and rental buyers.  Sales of vans and Sports Utility Vehicles (SUVs) were particularly strong.And the situation is set to improve when import tariffs drop 5 per cent from January 1.  Some importers, including Mazda and Subaru, have already passed on savings.

A dying Sydney newspaper this week rather cleverly headlined their coverage of the GM humiliation as “Government Motors Holden”.Not bad that. A flash of the old cleverness.Except, of course, taxpayers forking out to subsidise the building of cars they themselves don’t want is not exactly news in this country.Yeah, yeah, yeah - everyone’s cock-a-hoop that Holden’s remaining 6500 workers, its dealer network, and the thousands whose livelihoods are contingent on this brand, are not going to be out of work. For now at least …The manufacture of cars badged Holden – whether it’s an essentially 20th century six cylinder sedan bought mainly by fleets or a re-badged Daewoo – means the marque remains as firmly clamped to the breast of subsidy as a newborn to its mummy.The federal Government has committed $6.2 billion of your and my money to succouring local car makers. It’s paying Holden to build the globally-engineered, four-cylinder car (and already endlessly spruiked) Cruze here from next year.So it had better be bloody good.It had, in fact – given that Holden has lost $300 million in recent years – be better than the Mazda3.That’s the benchmark for sub-$30K car quality. As the May sales figures showed yet again, it’s the car on which Australians spend their own moneyYes, the ever declining Commodore sold 3683 to the 3’s 3038 – but not one of the Mazda’s sales was to fleets, without which Holden’s scarcely overtaxed production lines would be barely ticking over. Nor can Holden continue to rely on the approximately 75 per cent of bung ’em at out a bargain price fleet orders - not given the haste with which they shed value.So the only question is if Holden is to justify the continued injection of funds from people who really don’t want to buy them, is this: will the Cruze be good enough to trouble the Mazda3?Because if it’s just another anodyne re-badge job – if it’s just another Barina, Viva or Epica – you can officially remove that “i” from icon.

Holden chairman and managing director Mark Reuss is pushing the company into alternative fuels, using technology available from the General Motors' divisions. He says dedicated LPG products — the company has dual-fuel Commodore models — would use the latest fuel-injection technology to offer private and fleet buyers lower running costs. Ethanol-fuelled models running on E85 — 85per cent ethanol and 15 per cent petrol — would be offered on some models and diesels on others. Hybrids will follow, including Commodore and a smaller model. Holden next month will release a diesel version of its Epica small car to coincide with its Colorado light-commercial vehicle range that supersedes the Rodeo brand. It will be joined later by other Korean-sourced models including an updated Barina and Viva. Other diesels would be considered but the recent price rise of this fuel has placed doubt on the extent of the coverage. Also presenting problems is finding a suitable diesel engine for the Commodore. The move to alternative fuels and technology, together with a stream of vehicles from Korea, will put Holden back in market leadership “within a couple of years”, Reuss predicts. “In the not too distant future, you can expect to see Holden offering vehicles powered by dedicated LPG, ethanol and diesel and more fuel-efficient petrol engines and hybrids.” Reuss says Holden is looking at a range of options “rather than betting on one technology winner”. He says Holden was drawing on expertise from GM's global divisions. This move into unconventional technology is seen as boosting Holden's export potential. Australia's car industry is second only to minerals in export earnings and Holden is the biggest car exporter.  

The Australasian New Car Assessment Program (ANCAP) awarded the mid-sized Korean-made car four stars for its occupant safety systems including side head protecting airbags on all models.

The car industry uses a web of alliances to survive.Lust, affairs, one-night stands, engagements, marriages and divorces — it can be hard sharing your love. It can also be expensive, especially if the human analogy is applied to the car business.DaimlerChrysler's recent divorce cost the now-solo Daimler AG a cool $33 billion.Daimler and its former partner, now known by her maiden name of Chrysler Group, still share the kids.These include shared components and manufacturing, including the Chrysler Crossfire (based on the previous Mercedes-Benz SLK) and Jeep Grand Cherokee, which uses Mercedes' V6 diesel engine and transmission.Daimler-Benz and Chrysler courted in the late 1990s, sealing their association in 1998 with a new name, DaimlerChrysler.The marriage was mutually beneficial. Daimler gained economies of scale and a new customer for engines, transmissions and an outlet for its old platforms. The previous Mercedes E-Class shares the same platform as the Chrysler 300C.Chrysler gained unprecedented, cost-effective access to the drivetrains used to power its distinctively styled cars.Of the divorce, shareholders of Daimler- Chrysler spitefully said “I knew it wouldn't work”.Marriages may be difficult, but alliances are what keep many car companies afloat.All these inter-relationships are spurred by one goal — profit. So competitive is the car industry that every dollar counts.Making cars cheaper improves profits, even if that means relocating factories to countries with low labour costs, non-existent unions and tax-free government incentives.Few would know that 10 models on the Australian market are made in Thailand. South Africa makes five, there's one from the Czech Republic, three from Slovakia, one from Poland, four from Malaysia and one from Indonesia.Build quality in most cases is as good as you'd expect from a country-of-origin factory.The biggest difference is manufacturing costs. Building a Volkswagen Golf in Germany, for example, costs substantially more than building the same car in South Africa. Sharing components such as engines, transmissions, platforms and bodies with a rival company — or at least one perceived as being a rival — is big business.The platform of the Mazda3 is similar to the Volvo S40 and Ford Focus. Ford has a big chunk of Mazda's shares and owns Volvo outright.The Toyota Aygo, a one-litre hatch soon to be sold in Australia, is built in the Czech Republic with the Citroen C1 and Peugeot 107. The only differences are interior trim, grilles, head and tail lights. Everything else, except the badge, is identical.General Motors has a giant web of ownership, component sharing and minor shareholdings. It owns Saab and Hummer, and rebadges cars including the Daewoo Matiz as Chevrolets.GM owned 20 per cent of Fiat until it dissolved the relationship in 2005. But retains component sharing deals and owns 50 per cent of Fiat's JTD diesel engine technology.GM also has 3 per cent of Suzuki (it had 20 per cent until selling down in March 2006) and 7.9 per cent of Isuzu.This relationship crosses with Fiat. Suzuki buys Fiat diesel engines for its European cars but also buys diesels from the PSA group (owner of Peugeot and Citroen) and Renault. Fiat this year will also supply diesel engine's to Saab.The Suzuki Splash, to be launched in Europe later this year is based on the Swift/SX4 platform, but will be rebadged the Opel/Vauxhall Agila for European sales.Fiat sells the Suzuki SX4 as the Sedici in Europe.Suzuki also owns 11 per cent of GM-DAT, the Korean-based company that makes the Holden Epica, Captiva, Viva and Barina.GM sold its 20 per cent of Subaru parent, Fuji Heavy Industries, in 2005. Fuji bought back most of the shares, though Toyota bought in and now owns 8.7 per cent of the company.Toyota also owns Daihatsu and has a big stake in Yamaha. Yamaha has an engineering alliance with Toyota — twin-cam engine and multi-valve heads included — and recently created the V8 engine for Ford-owned Volvo.GM also gets its Saab plant in Sweden to make the Cadillac BLS mid-size car, alongside its Saab 9-3 and 9-5.The Hyundai Sonata's 2.4-litre engine is shared with the Jeep Compass, Dodge Caliber, Chrysler Sebring and Mitsubishi Outlander.Renault has an alliance with Nissan and owns Samsung (Korea) and has a joint venture with Mahindra (India).Porsche's Cayenne SUV is built in Volkswagen's factory in Slovakia alongside the Volkswagen Touareg and Audi Q7. Porsche's Cayman is built in Finland. That's just the tip of iceberg.Peyton Place has nothing on these guys. 

It says the deal is legally binding and is not an opportunity to get a free car for a month.

But the offer does come with conditions: GM Holden spokesman John Lindsay says the money-back guarantee must be taken up within 30 days or when the mileage hits 1500km, whichever comes first.

GM Holden is fighting back in the car-sales war by entering a new model in the increasingly important medium-size segment and offering a unique “buy-back” scheme. The Holden Epica is the mid-size car taking on the Toyota Camry. On sale from today, it sits between the Astra and Commodore and will have small six-cylinder engines. Imported from South Korea, it will cost from $25,990, including alloy wheels, airconditioning, power windows and cruise control. GM Holden's new buy-back scheme is aimed at giving a point of difference to other brands. It gives other brand owners peace of mind in switching to Holden. The buy-back allows a private purchaser of a Holden Epica, who changes his or her mind in one month or 1500km and buys another brand car of equal or greater value, to get their money back. “Customers can see switching brands as a risk so, to provide reassurance and confidence, we are introducing this new offer,” Holden's marketing manager for small and medium cars Teresa Basile said. “Convincing buyers of other marques to switch is a key to achieving sales success.” The mid-size segment has become more important as such traditional Australian large cars, as Commodore, struggle largely because of high petrol prices. GM Holden's mid-size Vectra last year sold just 1510 cars, whereas the Toyota Camry sold 24,221 and, in the first two months this year, 6447, Vfacts figures from the Federal Chamber of Automotive Industries reveal. Holden executive director of sales and marketing, Alan Batey, said the money-back offer would apply to Epicas bought by December 31 this year. “This offer is unique and a differentiated marketing tool to launch the new nameplate in this competitive mid-size segment,” he said. Epica in CDX form at $25,990 will have a two-litre, six-cylinder engine of 105kW power and manual gearbox with fuel economy rated at 8.2 litres/100km. Toyota Camry uses a 2.4-litre four-cylinder engine of 117kW power, from $28,000; Hyundai Sonata has a 2.4-litre four-cylinder of 118kW power from $25,990 and Mazda6 uses a 2.3-litre four-cylinder of 122kW from $28,285. Fast facts: Lexus LS460 On sale: NowPrice: $184,900Body: Sedan Engine: 4.6-litre V8 petrol; power 280kW@6400rpm, torque 493Nm @4100-2750rpm Transmission:Eight-speed sequential automatic, rear-wheel drive Fuel: 11.1 litres/100km (combined claim) Safety: The lot, including 10 (count 'em) airbags

Used car expert, Chris D'Sousa, says if you equip yourself with the right knowledge and the right frame of mind, you can find a good deal. And for cars up to $5000, you're best off looking for cars circa 1991 to 1995. D'Sousa, the operations manager for automotive information service Glass's Guide, says the car will generally have done about 180,000km to 240,000km but you can get ones with less kilometres if you look around and don't rush into a sale. In terms of models, he says the Japanese cars are best for reliability. "You could look at a Suzuki Swift or a Daihatsu Charade," he says. "Small cars would be the best way for younger people to go with a bigger range on offer. Nissan Pulsar, Toyota Corolla, Mitsubishi Lancer, Mazda 323, Honda Civic, Ford Laser, Daihatsu Applause, they're all reasonably reliable, providing they're in good condition." For those after a slightly bigger car, the Toyota Camry, Mazda 626, Ford Telstar and Holden Apollo are worth consideration. Even larger still, D'Sousa says there are many Falcons and Commodores available in this price range. But people should be aware these cars can be expensive to run and if you're working on a budget, smaller, four-cylinder engines are a better option. And when you've made that decision to buy a used car, D'Sousa says you should follow some important steps. "First they should identify the car they're looking for in terms of brand," he says. "If, for example, they like Corolla or Pulsar, they should understand prices and what your money can buy." For this, he recommends some research on websites, newspapers and magazines. Then you can begin the "window shopping" process. "Find a car closest to where you're living and have a look. Don't buy the first car you see, have a look at six or seven, it will give you an idea of what's good for your money." D'Sousa says buyers should be on the lookout for rust spots and should avoid buying cars from beachside areas if possible, as these are inclined to have some rust. Buyers should also be aware of poor repairs. "Drive the car, get a feel for it, does it handle well, check the oil is clean. If it's an auto, check it's changing gears properly, if it's manual, make sure the clutch isn't slipping." And if you don't know much about cars, be sure to get it checked by an expert. "Once vehicles get to these ages, they tend to suffer major mechanical faults if not serviced well," he says. When it comes to choosing a car, it can be a very emotional decision and D'Sousa warns that your feelings can get in the way. "Take someone with experience, such as a parent or friend, for a second opinion and to provide you with that balance," he says. "Some people buy with their heart rather than their head. With a car that age, it's very important you have a lot more than your heart." Airbags and ABS were just beginning to be introduced around 1994 and 1995 and D'Sousa says you may be able to find cars in this price range that have these features, mainly the larger ones. But he says these shouldn't be a priority and you should make sure the car is in good condition first. Newer cars could slip into this price range, with these features, and might seem like a bargain. But he warns the vehicle may be in poor condition. D'Sousa says another important step is to check the title to ensure the history of the vehicle. You can do this through the Register of Encumbered Vehicles (REVS). Some luxury European cars might also fit into this price range, but these often require expensive parts and are hard to service, so it may not be such a wise investment. D'Sousa advises people to stick to the more common cars and avoid vehicles with modifications. NRMA Insurance head of research Robert McDonald says when buying an older model make sure you do your homework and check for things such as collision repairs. McDonald also warns that modified vehicles are expensive to insure. "Modifications that can impact on insurance include increased engine size, expensive stereos, some alloy wheels, suspension lowering or raising, and expensive or elaborate paintwork. Check with your insurer first before buying or modifying a vehicle," he says.