Toyota Camry 2013 News

Australia still a nation of gas-guzzlers
By Joshua Dowling · 23 May 2014
Australia is still a nation of gas-guzzlers even though new data shows tailpipe emissions have fallen to their lowest since records were first calculated 10 years ago. Small-car specialist Suzuki topped the latest car emissions study while Jeep ranked last among the Top 15 brands.Figures released by the National Transport Commission show the average emissions for all new cars sold last year fell to 192 grams per kilometre compared to 252g/km in 2002.But our cars are still pumping out 45 per cent more carbon-dioxide compared to those in Europe (132g/km) and we’re not far behind the gas-guzzling capital of the world: North America (231g/km).Although small cars and SUVs have overtaken the Holden Commodore and Ford Falcon as our family favourites, Australians have been relatively slow to adopt more efficient vehicles because we are the fourth cheapest developed country in the world for petrol and the sixth cheapest for diesel.“There’s no doubt that one of the biggest factors that drives the European result is their substantially higher fuel taxation,” said the executive director of the Australian Automobile Association, Andrew McKellar.For example, the petrol price average in the UK last year was 217.3 cents per litre compared to 146.6 cents per litre in Australia. Fuel excise in Australia is also among the cheapest in the world: 38.1 cents per litre versus the UK’s 59.3 cents per litre.“Australian car buyers still tend to favour size, power and performance over fuel economy,” said Mr McKellar. However, the study should not be a “black mark” for motorists because Australians are more reliant on the motor vehicle.“In Europe, when you want to travel between cities it’s not uncommon to catch a high-speed train,” said Mr McKellar. “Australia obviously doesn’t have that network so we depend more on cars, and ones that can be driven comfortably over long distances.”The NTC figures also reveal private buyers are doing more to save the planet than are government and businesses. The average emissions of vehicles bought by private buyers last year was 186g/km compared to 198g/km for businesses and 210g/km for government fleets.This is partly because government purchasing policies have favoured Australian-made vehicles, which aren’t as efficient as equivalently-sized imported cars.Toyota has the most efficient locally-made cars, with the Camry and Aurion sedans producing an average of 179g/km, ahead of the Ford Falcon sedan and Territory SUV (213g/km).Despite manufacturing the Cruze small car alongside the Commodore, Holden’s emissions were the highest of the local makers (237g/km), according to the report.Indeed, none of Australia’s three manufacturers figured in the Top 10 list of the most efficient car brands.Top honours went to small car specialist Suzuki, whose average fleet emissions was 158g/km, ahead of BMW, Volkswagen, Mercedes-Benz and Hyundai.Toyota, Ford and Holden ranked in the bottom of the Top 15 brands, with Jeep ranked highest among the group (226g/km).Toyota may have the largest hybrid model range but it was penalised by its high proportion of commercial vehicles and SUVs.Meanwhile the locally-made Ford and Holden six-cylinder cars outweighed the improvements in with their imported four-cylinder cars.The study covered only the Top 15 brands as they represented 92 per cent of vehicles sold in Australia in 2013.Meanwhile, Australia’s regulations for carbon dioxide vehicle emissions lag European standards by more than six years.The latest “Euro 5” rules, as they are known, aren’t due to be enforced in Australia until November 2016; they were introduced in Europe in September 2010.Europe is targeting even stricter standards by 2015 (to an average emissions rating of 130 g/km) before limboing to just 95 g/km in 2020.The European target for light commercial vehicles such as utes and vans are 175 g/km in 2017 and 147 g/km in 2020.The Top 15 most efficient car brands in AustraliaSuzuki 158 g/kmBMW 158 g/kmVolkswagen 162 g/kmMercedes 165 g/kmHyundai 175 g/kmHonda 176 g/kmSubaru 181 g/kmMazda 184 g/kmKia 184 g/kmMitsubishi 191 g/kmNational average 192 g/kmToyota 203 g/kmFord 205 g/kmNissan 209 g/kmHolden 212 g/kmJeep 226 g/kmAverage CO2 emissions by brand in 2013.Source: National Transport CommissionThis reporter is on Twitter: @JoshuaDowling
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Number one: the car award no-one wants
By Joshua Dowling · 09 Jan 2014
The Corolla was finally crowned Australia's favourite car in 2013 after 46 years in the market -- but you won't hear about it from Toyota. The car giant, which has been the overall market leader for 11 years in a row and 17 years since 1991 but never had the top-selling vehicle, is going to follow Mazda's lead by not advertising the Corolla's sales success."There are no plans at this stage," said Toyota Australia executive director of sales and marketing, Tony Cramb, when asked if the company would advertise the Corolla's historic win.Mazda also gave us the silent treatment when its Mazda3 small car took top sales honours in 2011 and 2012. It is suspected Mazda didn't want to boast that it ended the iconic Holden Commodore's record 15-year winning streak.But it turns out both Toyota and Mazda are wary of their success. Insiders from both companies admit popularity can work against them if they cars are seen as being everywhere. "People want to be seen to be driving something different, not be part of the pack," said one insider.Mazda was also keen to distance itself from the Corolla, which has a reputation for blandness because older models were better known for their reliability than their current styling pizazz.However, it may come as a shock to many Mazda buyers but more Mazda3 small cars were sold in Australia in the past three years than the Corolla. Figures from the car makers show that only 40 per cent of Corollas are bought by private buyers, compared to more than 80 per cent of Mazda3s.Toyota is only the fourth brand in 60 years to win the Australian new-car sales race; the others being Mazda, Holden and Ford. It was the third year in a row Japanese cars have led the Australian car market; locally-made models have been the top sellers since WWI, say automotive historians.The Corolla is the world's biggest selling car, with more than 40 million on the road worldwide, including more than 1.25 million delivered in Australia since 1967.The Corolla was built in Australia from 1968 to 1999, becoming the first Toyota ever assembled outside Japan, but production ended because it became too costly to build small cars locally. The model is now made in 15 factories in 14 countries including Japan, Canada, South America, Turkey, Pakistan, Venezuela, Thailand, Vietnam, Brazil, Taiwan, India, and two factories in China.The Corolla won the 2013 new-car sales race after swapping the monthly sales lead three times with reigning champion the Mazda3 – the Mazda led the first three months of the year before the Corolla landed its first win for 2013 in April, and then led the year-to-date tally for the first time in June. In the end, the Corolla was the top selling car for eight months of the year, including the last four in a row.Incredibly, it was only the Corolla's fifth-best result (record was 47,792 set in 2007), another sign of the fragmenting market that is killing local car manufacturing. The Corolla earned top-seller status despite selling less than half the Holden Commodore's annual peak.Korean car maker Hyundai ranked fourth overall but was the second-biggest seller of passenger cars in Australia in 2013. Mercedes-Benz won the luxury car sales category, outselling BMW and Audi. The Mercedes-Benz C-Class sedan was the third best-selling medium-size sedan behind the Toyota Camry and Mazda6.This reporter is on Twitter: @JoshuaDowlingTop 10 cars 2013Toyota Corolla 43,498 up 12.1 per centMazda3 42,082 down 4.6 per centToyota HiLux 39,931 down 1.7 per centHyundai i30 30,582 up 7.9 per centHolden Commodore 27,766 down 9.1 per centToyota Camry 24,860 down 8.7 per centMitsubishi Triton 24,512 up 32.4 per centHolden Cruze 24,421 down 16.3 per centNissan Navara 24,108 down 7.4 per centFord Ranger 21,752 down 7.2 per centTop 10 brands 2013Toyota 214,630 down 1.6 per centHolden 112,059 down 2.3 per centMazda 103,144 down 0.7 per centHyundai 97,006 up 6.0 per centFord 87,236 down 3.5 per centNissan 76,733 down 3.8 per centMitsubishi 71,528 up 21.5 per centVolkswagen 54,892 stable 0.0 per centSubaru 40,200 stable 0.0 per centHonda 39,258 up 9.6 per centFalcon and Commodore hit new all-time lows in 2013Ford Falcon: 10,610 (compared to a peak of 81,000 in 1995)Holden Commodore: 27,766 (compared to a peak of 94,500 in 1998)A decade of record sales2004: 955,2292005: 988,2692006: 962,6662007: 1,049,9822008: 1,012,1642009: 937,3282010: 1,035,5742011: 1,008,4372012: 1,112,0322013: 1,136,227Locally made cars: then and now1999: 223,083 (including 184,000 Commodores and Falcons)2013: 118,510 (down 15 per cent on 2012, and the lowest since 1958) 
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Exclusive: future Holdens less Australian than a Camry
By Joshua Dowling · 02 Dec 2013
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 
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Toyota boss puts squeeze on Aussie parts makers
By Joshua Dowling · 20 Nov 2013
The future of Toyota Australia's manufacturing operations is looking increasingly grim as the company's most senior executives in Japan hit local suppliers with cost cutting targets so drastic they are doomed to fail.The global CEO of Toyota, Akio Toyoda, and the executive vice president and member of the board of Toyota, Nobuyori Kodaira, told Australian media in Japan overnight that supplier costs were key the survival of the Altona factory on the outskirts of Melbourne that makes the Camry."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."Mr Toyoda, the great grandson of company founder Sakichi Toyoda, said: "We have a very long history in operating in Australia. So going forward, working closely with our suppliers in Australia, we would like to aim at achieving sustainable growth."But "sustainable growth" is regarded by industry observers as an overly ambitious target. Toyota Australia has already stated publicly that it is trying to slash $3800 from the production cost of each Camry, about 15 per cent of the manufacturing cost, which equates to $400 million a year.Local suppliers will find it difficult to achieve this target because their economies of scale will be adversely affected by the closure of Ford's  factories in 2016, and the declining volumes of Holden, which is due to use more imported parts on its future models.However, the executive director of sales and marketing for Toyota Australia. Tony Cramb, believes the cost reductions are not "an impossible target"."We have to make changes ourselves, and so do our suppliers," Mr Cramb told News Corp Australia at the Tokyo motor show. It's a big challenge (but) I don't think it's an impossible target."Toyota Australia currently loses about $2500 on each car it exports because of the strong Australian dollar, according to company insiders.Last year Toyota Australia shipped more than 70,000 Camrys to the Middle East at an estimated loss of $175 million.However, the loss-making export deal is crucial to the survival of Toyota Australia's manufacturing operations because it only sells about 35,000 locally-made cars in Australia, and the break-even point for the factory is 80,000 units per year.The Toyota executives would not say whether its Australian manufacturing operations could survive without Holden, but Mr Kodaira did say continued government support was needed."We hope that together the central government of Australia and the country as a whole can also together cooperate to make an improvement to the (economic) environment," said Mr Kodaira."Of course we have been having communication and discussions with the government. I can't give you any concrete plans right now, but we have been working together."Last week, Toyota Australia said export sales were key to the survival of Altona. "Exports are absolutely critical," said Mr Cramb. "If we can maintain exports, we're all good."Domestic demand for the Camry is down 7 per cent year-to-date and demand for the Aurion V6 sedan built alongside it is down by a massive 24 per cent.Toyota Australia says it won't know until some time next year whether or not it will have made enough savings to secure the 2018 car and the future export deal."Exports play a vital part in our balanced business model and we will do everything we can to continue to support our export customers," said a media statement from Toyota Australia Executive Vice President and Chief Operating Officer Dave Buttner.Mr Buttner said the company was well progressed with a five-year plan to save $3800 in the production cost of each car, or about $400 million each year.But the next round of cost-savings over the next three years are proving difficult to achieve, the company says.Last month, Toyota Australia announced it was seeking a variation to its current workplace agreement and cut factory worker bonuses and overtime to save $17 million a year.Toyota Australia's Altona facility on the outskirts of Melbourne is one of nine factories where the Camry is made, including two in North America and one each in Japan, China, Russia, Thailand, Taiwan and Vietnam.This reporter is on Twitter: @JoshuaDowling 
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Toyota future rests on export hopes
By Joshua Dowling · 15 Nov 2013
The survival of Australia’s largest and possibly last remaining car manufacturer, Toyota, is hinging on an unlikely bid to renew an export deal with the Middle East.While the manufacturing future of Holden remains in doubt -- as secret documents reveal the struggling car-maker would make a loss on new models without taxpayer assistance -- Toyota Australia has revealed it is competing with eight other global Camry factories that can make the same car more cheaply.Toyota Australia must meet an aggressive cost-saving target of $3800 per car -- about 15 per cent of the manufacturing cost of each vehicle -- before it can retain the Middle East export deal and win approval from Japan to build the next generation 2018 Camry.If Toyota Australia cannot meet this target, the Middle East region will source the Camry from one of Toyota’s eight other global factories."We need a balance of both domestic and export demand," said Toyota Australia executive director of sales and marketing, Tony Cramb, adding the "tipping point" for Toyota Australia’s volume to remain viable as a manufacturer is 80,000 units per year.Toyota Australia is on track to build 105,000 cars this year but only about 35,000 of those will be sold locally.Domestic demand for the Camry is down 7 per cent year-to-date and demand for the Aurion V6 sedan built alongside it is down by a massive 24 per cent. "Exports are absolutely critical," said Mr Cramb. "If we can maintain exports, we’re all good."Toyota Australia says it won’t know until some time next year whether or not it will have made enough savings to secure the 2018 car and the future export deal."Exports play a vital part in our balanced business model and we will do everything we can to continue to support our export customers," said a media statement from Toyota Australia Executive Vice President and Chief Operating Officer Dave Buttner.Mr Buttner said the company was well progressed with a five-year plan to save $3800 in the production cost of each car, or about $400 million each year.  But the next round of cost-savings over the next three years are proving difficult to achieve.Last month, Toyota Australia announced it was seeking a variation to its current workplace agreement -- to cut factory worker bonuses and overtime -- to save $17 million a year.Toyota has been exporting the Melbourne-made Camry sedan to the Middle East since 1996 and last month reached more than 1 million exports to the region – taking less than half the time it took Holden to export 900,000 vehicles. Toyota Australia’s biggest annual shipment was 97,000 cars in 2008.The strong Australian dollar means that Toyota loses about $2500 on every Camry exports, according to company insiders.  Toyota Australia would not officially confirm how much money it loses on its current export deal.Toyota exported 72,899 Camry and Aurion sedans last year and, of those, approximately 97 per cent were sent to the six Gulf Cooperation Council countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. In addition to the Middle East, Toyota Australia also exports vehicles to New Zealand and the South Pacific Islands.Toyota Australia’s Altona facility on the outskirts of Melbourne is one of nine factories where the Camry is made, including two in North America and one each in Japan, China, Russia, Thailand, Taiwan and Vietnam.While Toyota Australia exports about 70 per cent of its production, or more than 70,000 cars each year from its facility in Altona, last year Holden exported just 14,500 cars or 17 per cent of the 84,000 cars it produced locally. Shaping up and shipping out: Australia’s car exportsToyota: 1,030,000 from 1986 to September 2013.Biggest export year: In 2008 Toyota exported 97,153 cars, primarily to the Middle East.Holden: 907,000 from 1954 to 2012. Biggest export year: In 2005 Holden exported 60,500 cars to the US and the Middle East.Ford: 500,000 from 1962 to August 2013 (estimate based on 57,700 exports from 2003 to 2013).Biggest export year: In 1991 Ford exported 30,000 Capris to the US.Mitsubishi: 162,000 from 1980 to 2008.Biggest export year: In 2002 Mitsubishi exported 25,000 sedans to the US and Canada.This reporter is on Twitter: @JoshuaDowling 
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Devereux was unique
By Joshua Dowling · 28 Oct 2013
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 
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Reinventing the wheel to keep manufacturing jobs
By Joshua Dowling · 03 Oct 2013
Australia's oldest wheel manufacturer will invest $5.5 million over the next nine months to secure a contract to supply car giant Toyota for another 10 years.The new wheels will be fitted to all local and export versions of the Toyota Camry and Aurion sedans from 2015 to 2022, although some models will have them from as early as next August.Adelaide-based ROH wheels, which once supplied all four local car makers -- Toyota, Holden, Ford and Mitsubishi, but of those now only supplies Toyota's car assembly line in Melbourne -- has already begun the ground works at its Woodville North plant to make way for new hi-tech machinery.ROH will be one of only about 20 wheel manufacturers in the world to use "flow forming" technology, which makes alloy wheels lighter yet stronger, saving aluminium in the production process and contributing towards better fuel economy in cars.Once the new machinery is operational the ROH factory will be able to produce 480,000 alloy wheels a year, with most of them being freighted interstate to Toyota on six B-Double trucks each week.ROH general manager Bill Davidson said his company had worked closely with Toyota on the new technology after adopting the Japanese manufacturer's production efficiencies. "Toyota is always about constant improvement, a better way to do things," said Mr Davidson. "They just don't walk in here and demand a cheaper price, they help you find ways to achieve it."Mr Davidson said Toyota continued to source Australian-manufactured wheels even though the car maker can import them more cheaply from China (as Holden and Ford do). "Toyota believes in supporting local suppliers as much as possible, even if it might cost them a little more," said Mr Davidson."But the benefit for Toyota is that they take efficiencies we have found in a high-cost environment and take them to other factories around the world where they can make even bigger savings because they're producing higher volumes."Contrary to perception Toyota cars have more local content in them than Holdens. The Toyota Camry is made up of 65 per cent local parts, compared to 50 per cent for the Commodore and just 30 per cent for the Cruze, according to figures supplied by the car makers. The Ford Falcon sedan and Territory SUV have 70 per cent local content."Flow forming" technology has only been used in mainstream wheel manufacturing for about three years, having been pioneered by a German company, Mr Davidson said.But the manufacturing equipment ROH will use will come from Japan.  The new production efficiencies will mean that 11 contractor positions will be no longer be required, trimming ROH's workforce from 154 to 142.At its peak 10 years ago ROH employed more than 450 workers and had three press lines running 20 days a month. It now has one press line running nine days a month.  "You never like to let people go but unfortunately this is the price of survival," said Mr Davidson. "We have to adapt."Cheap Chinese wheels have all but "crippled" the wheel manufacturing industry here and overseas, said Mr Davidson. "So we've had to work bloody hard to stay afloat and move with the times."An unexpected bonus, the Toyota project also helped ROH find new efficiencies when manufacturing its regular steel wheels. "We're producing wheels here at 25 per cent less cost today than we were 10 years ago," said Mr Davidson.While ROH has received some government assistance in the past it says it has not used taxpayer funding to help pay for this new deal. ROH is waiting on the outcome of a Clean Technology Grant application, but the scheme is likely to be scrapped by the new Coalition Federal Government.This reporter is on Twitter: @JoshuaDowling 
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Car sales hit the brakes in September
By Joshua Dowling · 03 Oct 2013
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 
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'Buy Australian' policy backfires
By Joshua Dowling · 19 Sep 2013
Ford and Toyota are concerned the "buy Australian cars" policy — rushed through by the Rudd Government to make up for the damaging changes to Fringe Benefits Tax — has been interpreted as "buy Holden".Government sales for both Ford and Toyota have fallen as Holden Commodore deliveries surged by 15 per cent last month.The two rival car-makers believe some government departments have misinterpreted the policy announced in desperation by former Prime Minister Kevin Rudd in the lead-up to the election."We're concerned that some of our (government) customers may have misinterpreted the 'buy local' campaign," said Toyota Australia spokeswoman Beck Angel."Some of Toyota's longstanding fleet customers have expressed confusion on whether they are still allowed to buy our vehicles because of the campaign."Sales of the Ford Falcon fell to new record lows over the past two months and the car maker, which is closing its Australian factories in 2016, had to schedule 12 production down days.Ford spokeswoman Sinead Phipps told News Corp: "We hope the buy Australian cars policy will be evenly applied to all brands."SA Labor Premier Jay Weatherill has been one of the most vocal advocates of the "buy Australian" policy as he tries to shore-up taxpayer support for the struggling car maker and help save the 1700 factory jobs at Holden in Adelaide and several thousand more workers employed in the surrounding supplier base.Toyota says it will be "closely monitoring" its government sales figures to see whether there has been "any impact because of the misinterpretation".Holden spokesman Sean Poppitt declined to comment on the "buy Australian" policy and if the company thought it had advantaged Holden.The Rudd Government believed the FBT changes would affect "BMW drivers" but industry figures showed locally-made cars would be worst hit because of their reliance on government and fleet sales.For example, up to 70 per cent of domestic-market Toyota Camrys are sold to government departments at Federal, State and Local Council level.While much of the focus has been on Holden as it fights for survival, Toyota is in fact the biggest automotive manufacturer, employer and exporter in Australia, with about 2500 factory workers building more than 100,000 cars a year.Toyota and Ford vehicles built here also have more locally-made content than Holdens, figures supplied by the car makers show.Meanwhile the newly elected Prime Minister, Tony Abbott, has vowed to reverse the FBT changes. The fleet sales and salary packaging industries have already reported a turnaround in business since the election.This reporter is on Twitter: @JoshuaDowling 
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Toyota Camry Atara R | new car sales price
By Karla Pincott · 30 Aug 2013
Toyota has launched a new addition to the Camry range, with the arrival of the Atara R, which lowers the entry price to the Camry Atara nameplate, but offers a bit more than the base-model Camry Altise that is the Atara R’s starting point. Only around 2500 examples of the Camry Atara R will produced, with the Australian built special edition model coming with more than $3,000 of extras features compared with the $30,490 Altise, but costing just $1400 more. The exterior gets a dress-up with a front sports bumper and grille, sports side skirts, dual exhaust diffuser, 17-inch alloy wheels, front fog lamps and a special-edition badge. The interior isn’t forgotten, with the addition of premium three-spoke steering wheel (with audio controls), 6.1-inch screen display audio and reversing camera with fixed guidelines. The Camry Atara R special edition is priced at $31,820, slotting in under the $33,490 Atara S, $35,990 Atara SX and  $39,990 Atara SL.
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