April 06, 2005 No. 180 UUnder thender the sspotlightpotlightKey rivals including Hyundai, Kia, Suzuki and Proton believe the combined loss of 10,000 vehicles to the local market stemming

April 06, 2005 No. 180

GoAuto -newseJohn Mellor's

No. 281

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By NEIL McDONALD

AUSTRALIAN light-car consumers suffered

a massive blow with the withdrawal last week

of Daihatsu, however rival manufacturers are

insistent the segment is far from dead.

Key rivals including Hyundai, Kia, Suzuki

and Proton believe the combined loss of 10,000

vehicles to the local market stemming from the

loss of Daihatsu and GM Daewoo, the latter

having pulled out last December, should translate

into a small but vital gain for their own

budget offerings.

Hyundai Motor Company Australia

spokesman Richard Power said there

were new opportunities now for

importers like Hyundai “but it’s a little

measured because they (Daihatsu) obviously

weren’t a big volume player”.

“But it does leave a little room in a very

crowded segment,” he said, pointing to the 20-

plus models on offer. “It’s very heavily subscribed

but the freeing up of a few slots does allow a little

room to move with product.”

Mr Power said a more pressing issue was the

competition the Korean brand faced from bigger

players such as Daihatsu parent Toyota, Holden

and Ford.

“They have the budget and might to market

extremely aggressively, quite often targeting us

directly,” he said.

This marketing clout was often particularly

directed at the light-car segment, which needed

heavy investment to survive and prosper, he said.

Broken down into specifi cs, Daihatsu last year

sold 5016 vehicles with Daewoo managing 5514

vehicles. The diminutive Kalos secured a big slice

of overall Daewoo sales with 2695 vehicles sold.

Taking out the larger models offered by

Daewoo, this leaves a hole in the light-car arena

of up to 8000 vehicles.

Kia Automotive Australia spokesman Edward

Rowe stressed it was not impossible to be

profi table on less than 5000 units a year

in the local market, but that it required

diligent management of expenditure.

He also argued the loss of two

importers did not signal the Australian

market was too costly for budget brands

to compete in.

“You’ve got the traditional squeeze of

competitors from the bottom but you’ve also

got a squeeze from the top, which is a number

of European cars coming down into that sector,”

he said.

Mr Rowe said cheap fi nance also meant more

people could borrow to purchase cars that were

once out of their price range.

He said it was now quite easy to fi nd the extra

cash to purchase a car further up the food chain,

like the VW Polo, Citroen C3 or Peugeot 206.

The new Ford Fiesta and Holden Barina also

added to the squeeze.

“If you want to compete successfully in that

sector you’ve got two alternatives,” Mr Rowe

said. “One is that you must have a decisive

value-for-money offer in price and equipment.

Or you’ve got to have the cache of a European

badge.

“If you have neither of those it’s tough

going.”

He further insisted that Kia did not intend to

introduce to Australia the Picanto hatch, which

would slot in under the $14,990 Rio.

Over at Suzuki Australia, the sole remaining

Japanese micro-car brand Down Under, general

manager David Le Mottee said he was surprised

by Toyota’s decision to withdraw Daihatsu.

“To be honest, I don’t know how to take the

Daihatsu news because there was a time when we

were very fi erce competitors and we used to go

toe-to-toe with volume all the way. But they’ve

dropped back in volume over the past few years,”

he said.

“What does surprise me is that they’ve just

launched a brand-new car (Sirion) with some

bold statements about it and a month later it’s all

over.”

Surviving light-car brands stand fi rm as Daihatsu follows Daewoo out of Oz

Under theUnder thespotlightspotlight

Marcos launches Down Under - page 4-6

Dodge set for 2007 arrival - page 7-9

Continued next page

From left: Swift, Getz, Rio and Gen2

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GoAuto -newse APRIL 06, 2005 Page 2

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TM

by

By NEIL McDONALD

TOYOTA Australia has denied the winding down

of its Daihatsu operations will now pave the way

for the US-inspired Scion ‘youth’ brand.

Toyota Motor Corporation Australia’s sales

and marketing director, David Buttner, admitted

Toyota was still working on a feasibility study of

the sassy Scion brand - but said the withdrawal

of Daihatsu from Australia was a separate

issue.

“The withdrawal of Daihatsu is

not related in any way whatsoever to

Scion,” he said.

Toyota announced last week it would

axe the Daihatsu brand from Australia, which is

the only country to lose the marque.

In all, 79 dealers are affected – 44 of them are

also Toyota dealerships but only two are stand-

alone dealers. They are in Bunbury, Western

Australia, and Maroubra, Sydney.

Mr Buttner said Toyota regretted the decision

but the extremely competitive local light car

market had forced its hand.

“The highly competitive sales environment

and the future outlook for the Daihatsu brand in

the small- and light-car market does not make

continued operations viable,” he said.

“When Daihatsu fi rst entered the light-car

market there were 10 competing brands and now

there are 23, each fi ghting a market segment where

margins are historically low.”

The decision comes after intensive study of

Daihatsu’s small-car operations and its forecast

performance here, none of which were

optimistic.

“We conducted a thorough review

which examined matters including

the local sales environment, customer

preferences, increased competition,

fi nancial outlook and recent volume

trends,” Mr Buttner said.

“This review determined that the long-term

viability of the Daihatsu business was limited in

the Australian market.”

Toyota Australia took on the Daihatsu franchise

in 2002 on the basis that it would sell between

16,000 and 20,000 cars by around 2007. It sold a

little over 5000 last year.

Despite this obvious shortfall, Mr Buttner said

the decision “was not easy to make”.

Continued next page

Scion no sure betScion no sure betDaihatsu's demise unrelated to Scion: Buttner

Scion tCUnder the spotlightContinued from previous page

In contrast, Suzuki is on an upswing with its new Swift model pushing total Suzuki sales to 1053 vehicles so far this year, according to VFACTS fi gures issued yesterday. The Swift itself managed to fi nd 494 buyers last month and some dealers are holding three-month waiting lists.Another car importer struggling in the local small-car market is Proton. It has had a dismal start to 2005, selling 381 vehicles in the fi rst three months. Last year it sold a total of 1378 cars and could not register even one percentage point in market share, managing just 0.9 per cent.By comparison, Daihatsu achieved a passenger vehicle share of 0.6 per cent and GM Daewoo 0.9 per cent. Proton’s Gen2, launched late last year, has also failed to ignite with just 170 sold thus far in 2005.Proton Cars Australia managing director, John Startari, admitted to GoAuto last year that low-priced market entrants were a threat to the Malaysian importer.Furthermore, he said the amalgamation of smaller marques giving more spend power “and the ability of other manufacturers to introduce competitive blocks to new Proton models” were also cause for concern.“The vehicles that we’re bringing in, in the short-term, are all in price-sensitive markets – and the biggest threat is to sell on price,” he said.“We’ll be price-competitive – we’ve certainly learnt a lot of lessons (on that score) – however we cannot sell on price alone. If we badge our price as the selling point, I think we may as well close up the doors tomorrow.”VFACTS fi gures show the light-car segment represents a 14.8 per cent share of total sales this year, compared to 14.4 per cent for the same period in 2004.But take out the some of the big nameplates like Getz, Echo and Barina, and there are a lot of cars fi ghting over the leftovers.

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GoAuto -newse 2005 Page 3

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Continued from previous page

“Daihatsu has been a part of the Australian

motor industry for more than three decades.

Business logic, however, must outweigh

sentimental attachment,” he said.

Daihatsu Australia’s operations started winding

down last week but the brand will continue to be

marketed until March 2, 2006. Warranty, servicing

and parts will be honoured by Toyota dealerships

under a 10-year agreement.

“Of course, there may be some (buyer)

repercussions because of this announcement,” Mr

Buttner said.

“But we will support our customers

wholeheartedly in the future. Beyond April 2006

we will have an appropriate number of authorised

service outlets organised.”

Daihatsu currently has about 3000 vehicles in

stock nationally.

Mr Buttner said the remaining cars would

not be rebadged and sold as Toyotas and that it

would be up to the marketplace to determine price

points.

Daihatsu globally is a division of the

Toyota Motor Corporation, the world’s

second-largest automotive company

behind General Motors.

In 1998, TMC acquired 51 per cent of

Daihatsu and in 2000 Toyota Australia

took over distribution of the brand in Australia.

Daihatsu Australia was initially established in

1975 as a joint venture between the then Thiess

Toyota and the NSW state distributor York Toyota,

shipping company Nichimen and Daihatsu Motor

Co Ltd.

Daihatsu took full advantage of regulations

that enabled it to import light trucks with

purpose-built fully built-up bodies. The technique

revolutionised light truck quality in Australia and

encouraged a far more competitive local body-

building industry.

Daihatsu was largely responsible for introducing

light four-wheel drives to Australia, a

trend picked up and expanded into the

now booming cross-over segment of

sports utility vehicles.

The marque is made up of Charade,

Copen, Delta truck, Terios four-wheel

drive and the just-launched 1.3-litre Sirion, which

has failed to ignite sales.

Mr Buttner said the Daihatsu business had been

marginal for several years but declined to say how

much money it was losing.

“It had not been signifi cant but enough to make

us look closely at it,” he said.

He would also not comment on a suggestion

that the Australian market was swamped with too

many brands, each trying to make money on very

slim profi t margins.

“Certainly when you look at the Australian

market at the moment we have 44 brands

competing in a market of less than one million

vehicles,” he said.

“If you look at the segment Daihatsu competes

in there are 23 brands represented.

“It’s certainly a very competitive market but

whether it’s too many or not it is not for me to

judge.”

Daihatsu owners will be advised by letter of

Toyota’s decision. Owners can obtain information

through a customer hotline on 1800 457 470 or from

the Daihatsu website on www.daihatsu.com.au

Scion no sure bet

The short-lived Copen convertible

Scion no sure bet

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© 2004 Exxon Mobil Corporation. Mobil, Mobil 1 and The Flying Horse device are Trademarks of Exxon Mobil Corporation or one of its subsidiaries. McCann MPVL000110-Q

NOTHING ELSE CAN PROTECT YOUR ENGINE BETTER THAN MOBIL 1.

THERE ARE MORE THAN 20 PATENTS ON ITS SUPERSYN™ ANTI-WEAR TECHNOLOGY.

NICHE British sports car marque Marcos will

start trading on Australian soil from June and is

also in negotiations to set up a manufacturing

operation in Adelaide.

The Australian-owned distributor Marcos

Australia has confi rmed it is negotiating with

the South Australian government, investors and

suppliers to build its new TSO GT Coupe.

Marcos Australia managing director John

Pryce said deliveries from Marcos Engineering's

Westbury, England, production plant of the GT

Coupe and sister car R/T Convertible would

commence in July – and that local production of

the Coupe could begin as early as the fi rst half

of 2007.

He said building approximately 300 of the

handmade sports cars in Australia annually would

be enough to make the project viable.

“A decision should be made within three

months,” Mr Pryce told GoAuto. “Our plans are

moving ahead very satisfactorily but there are

still a few issues that are subject to commercial

and other considerations.

“It is a part of our strategy to

manufacture in the region and

Australia would be the preferred site

and, subject to a number of things falling

into place in the next couple of months, then that

is our intention.

“The fi gures have been calculated on fi rm

fi nancial grounds. We’re serious business people

and not just petrol heads. If the numbers didn’t

stack up then we wouldn’t do it.

“We have a product that is good for the region

and we know we can structure a very good

business out of it.”

Mr Pryce said one of his prime objectives was

to use maximum local content but he would not

elaborate on the size of the local investment,

or who the suppliers would be, should local

manufacturing proceed.

He did confi rm that Mitsubishi’s soon-to-close

Lonsdale plant was not in the picture, though

should the project proceed Marcos intended to

tap into the pool of knowledge and expertise that

exists in the Adelaide area.

There has been no negotiation with Holden

regarding the TSO’s V8 powertrain supply,

which Marcos Engineering sources directly from

General Motors in Detroit.

According to Mr Pryce, the South

Australian government has provided

support for its intentions, including

assistance with the Coupe’s world

premiere at Adelaide's Clipsal 500 race

meeting last month.

“It is the SA government that has been the

main player at this stage,” he said. “We were

looking for someone like the SA government and

they were looking for someone like us.”

The motorsport link is also integral to the

Marcos brand’s marketing strategy and it plans to

be involved in future Australian events.

In the 1990s, the marque enjoyed numerous

motorsport wins in the UK with the GM V8 engine,

including a British GT Series Championship win.

It has also had success at Le Mans.

If the production plans do materialise, Australia

would become the world’s sole supplier of the

Coupe. Export markets could include Europe

and America as well as Asia-Pacifi c areas such

as Japan, New Zealand, China, Thailand, Taiwan,

South Korea and even India.

Sales of up to 100 units per annum are being

earmarked for Australia, which is around the

number Marcos sells in the UK.

In this region, Japan is expected to be the

biggest market outside Australia, with about 50

cars slated for arrival there.

According to Mr Pryce, the priority has been to

get the car out here, launch it, evaluate it and get

a feel for the market.

“From here, we’re addressing the issues and,

if we were to manufacture, what the conditions

would be,” he said.

Australia was chosen because of this market’s

enthusiasm for, and understanding of, raw high-

performance V8 engines.

Not counting any local manufacturing

agreement, Marcos Australia intends to employ

around 50 people.

“Obviously this fi gure will be much higher if

a local manufacturing deal is reached,” Mr Pryce

said.

TSO takes aim - next page

Marcos makes its moveMarcos makes its moveBritish sports car brand launches Down Under - and looks at a local manufacturing deal

TSO GT Coupe

EXCLUSIVEBy BYRON MATHIOUDAKIS

www.mobil.com.au




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By BYRON MATHIOUDAKIS

THE $180,000 Marcos TSO GT Coupe had its

world premiere at Adelaide’s Clipsal 500 race

meeting on March 18.

The prototype on show, which completed

several pre-race laps, is the only one built thus

far.

It is currently undergoing a 2800km test

and evaluation course ahead of production for

Australian-bound cars in June. The fi rst deliveries

are expected in July.

The R/T Convertible, upon which the TSO GT

Coupe is based, will also be shipped to Australia

and priced from $180,000.

The R/T was released in Britain at the

Birmingham motor show last year.

Both vehicles are rivals to the Porsche 911,

AMG-fettled Mercedes such as the CLK55,

BMW’s 6 Series coupe and UK cottage sports car

industry compatriot TVR.

Like the latter, the rear-wheel drive TSO is a

two-seater powered by a high-performance V8

engine – in this case a derivation of General

Motors’ 298kW (400bhp) 5.7-litre OHV GEN III

V8 engine.

Marcos says the lightweight (1100kg) GT

Coupe can accelerate to 96.56km/h (60mph) in

just over four seconds, 160.9km/h (100mph)

in just over nine seconds and from 80.47km/h

(50mph) to 112.65km/h (70mph) in just over two

seconds.

The 297.73km/h (185mph) top speed puts the

GT’s performance well into the super-car league.

Engineering specialists Prodrive undertook

much of the TSO GT’s chassis development and

testing.

Up to 100 cars can be imported annually if the

demand is there, with 70 per cent of them being

the Coupe.

If the plans for production in Australia bear

fruit, around 300 cars are likely to built annually,

with about two-thirds of that likely for export

consumption.

In lieu of dealerships, Marcos is planning

for specialised retail sales centres consisting of

an auto shop with only one or two cars and an

appropriately salubrious showroom.

Sites such as Southbank in Melbourne,

Sydney’s Pitt Street, the Gold Coast and Adelaide

are on the cards. These will be purely sales and

merchandising outlets.

Servicing, maintenance and spare parts access

will be tied in with a strategic partner.

The details are still under discussion, but it is

believed an announcement with an existing high-

performance service outlet will be made soon.

Marcos is aiming to have 12 to 15 outlets across

Australia.

Rollercoaster ride - next page

Marcos Engineering chairman Tony Stelliga (left) with SA premier Mike Rann and the TSO GT Coupe

TSO takes aim at the big names

TSO takes aim at the big names

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MARCOS sprang out of the 1959 partnership

between two men obsessed with motorsport.

Designers/engineers Jem Marsh and Frank

Costin (brother of Mike Costin of Cosworth racing

fame), began building fast, lightweight cars driven

by luminaries such as Jonathan Palmer, Derek Bell

and Jackie Stewart.

There was much technical expertise between

the two of them, particularly the late Mr Costin,

who up until then had worked as an aerodynamic

fl ight test engineer with aircraft manufacturer De

Havilland. He had also worked with Lotus.

Mr Costin left in 1961, a year before Mr Marsh

established the kit-car business Marcos Cars Ltd.

Variations of the sports/racing car theme followed,

leading to the expensive 1964 Marcos GT coupe.

A failed venture into the United States in 1970

was followed by the sale of Marcos to racing

team proprietor Rob Walker in 1971, but fi nancial

diffi culties led to the GT model’s demise a year

later.

Still, Marcos lived on because of the success

of its more affordable Mini-Marcos model,

a fi breglass re-body of the iconic BMC Mini

released in the mid-1960s.

Meanwhile, Mr Marsh resurfaced with Marcos

during the latter 1970s, and by 1981 had put the

old GT back in production alongside more modern

derivatives of the Mini-Marcos.

Ups and downs have followed, with considerable

motor racing success with the LM600 model

during the 1990s.

Marcos went into receivership in 2001, with the

new Marcos Engineering management behind the

reinvention of the company ever since.

Its TSO range, the fi rst fruit of the fresh start,

was released in Europe in May, 2004.

- BYRON MATHIOUDAKIS

Rollercoaster ride

MARCOS TSO GT: IN DETAIL

PRICE$180,000 on-the-road

WARRANTY3 years/100,000km

ENGINE5.7-litre OHV GEN III V8 Power: 300kW/400bhp at 6000rpm Torque: 534Nm/393lb-ft at 5000rpm

TRANSMISSIONSix-speed manual gearbox/LSD

BODY/CHASSISTwo-door two-seat coupeTubular Space Frame ChassisGRP Composite Body

DIMENSIONSLength: 4020mmWidth: 1680mmHeight: 1150mm Wheelbase: 2280mmFront Track: 1450mmRear Track: 1400mmWeight: 1170kg

BRAKESVentilated/cross-drilled 4-pot alloy callipers Front: 340mm diameter groovedRear: 320mm diameter

STEERINGPowered rack-and-pinion steering 2.5 turns lock-to-lockFully-adjustable column

Mini-Marcos circa 1966

Rollercoaster ride

www.gpandp.com.au




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DAIMLERCHRYSLER brand Dodge will

unveil its new range of passenger vehicles at the

Australian International Motor Show in October,

2006, ahead of an all-out assault on the market in

the fi rst half of 2007.

It is believed the fi rst Dodges here will include

a circa-$30,000 fi ve-seat, front-wheel drive

hatchback based on the Caliber concept shown at

the recent Chicago motor show.

The production version of the Caliber will

replace the six-year-old PL2000 Neon in

Chrysler’s new vehicle line-up when it debuts

later this year in the United States.

A variation of the Nitro X 4WD concept, a

second Chicago debutante designed to highlight

Dodge’s international intentions, should follow

right behind.

This is believed to be a 4WD in the mould of

the Ford Territory, although the Nitro concept

is based on the more off-road-focused Jeep

Cherokee.

It is powered by Chrysler’s existing

157kW/319Nm 3.7-litre SOHC V6 and paired to a four-speed automatic gearbox.

If the production version, also due for an American launch inside 12 months, remains faithful to the Nitro concept then it will be Dodge’s fi rst medium-sized 4WD.

However, Chrysler Jeep Australia managing director Gerry Jenkins said both concept cars

were mere pointers.

“They are an excellent indication of the design and the vision of the brand – where we want to go and the type of lifestyle vehicles we want to offer,” he told GoAuto.

“Those two vehicles are purely concept vehicles and are just built for test purposes to get a reaction from the market.

“The only thing you can draw for the moment is the actual fl avour for the brand – the actual design cues and nothing much more than that.”

Mr Jenkins added that these vehicles emphasized a desired strong youth element for the Dodge brand.

“We want to position Dodge as another good alternative for Australians, with styling that’s a big point of difference,” he said.

“The Caliber is a good example of where we’re going in a design perspective – it will be very bold and arguably masculine. That’s possibly the positioning of that product.”

Caliber contrasts vividly with Chrysler Australia’s last foray into the small-car segment, the less-than-illustrious Neon sold from 1996 to 2002.

Only 5500 were sold in Australia, hampered by high pricing, fi erce competition and a single four-door sedan body choice with styling that, though distinctive, probably bordered too closely on being ‘cute’ for a wide demographic appeal.

Continued next page

Dodge draws nearDodge draws nearAll-American budget brand set for 2007 Aussie launch

Caliber

Nitro X

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Continued from previous page

On the subject of volume, the numbers slated for Dodge in Australia are still being worked out.

“We haven’t put the number down on paper yet – we’re still negotiating that with Detroit,” Mr Jenkins said.

“But we’re obviously interested in building incremental growth and building a solid base and making sure that our dealers have suffi cient volume and the throughput to make the franchise an attractive one.”

Last year, Mr Jenkins told GoAuto he wanted to double the number of right-hand drive products now available by the end of 2007.

“It will be product that’s much more refi ned, much better quality, much more durable, and we’re going to try to keep in a very price-competitive position,” he said.

“The range is expected to compete with everything from Mazda and Honda up to, well, Chrysler really.”

That puts the opening price point somewhere from the $20,000s right up to around $65,000, the projected ask for the upcoming Chrysler 300C.

Of the other prospective vehicles, Mr Jenkins said the Dodge Charger was not expected to be released here.

“We’re very excited that the Charger is back,” he said.

“It evokes an enormous amount of memories for many Australians ... (but) unfortunately the car won’t be coming … unless demand in other right-hand drive countries increases signifi cantly.

“Whilst we would love to get the Charger and

add it to our growing stable of products, the reality

is it will probably never come here.”On the question of Dodge commercial vehicles,

Mr Jenkins would not specifi cally rule anything out.

“I don’t think we can’t expect to see any of the current US vehicles on the Dodge side to work their way to Australia range of vehicles – i.e. the Dakota or Ram – those are not in the plan,” he said.

“But what will be coming in ’07 are the newer products, the newer Dodges that are slated.”

He would not divulge details, nor the investment outlaid to bring Dodge here, however he said none of the vehicles coming to Australia would

overlap with what Chrysler or Jeep offers in Australia.

On the retail front, Chrysler Jeep Australia will develop current sites that are already Chrysler and Jeep franchises.

It is currently sorting out the network to ascertain which are, or will be, best equipped to handle Dodge.

Besides sales, the servicing and spare parts capabilities of prospective outlets are also being reviewed.

At over 90 years of age, Dodge is the second-oldest brand in the DaimlerChrysler stable after Mercedes-Benz.

Last year, it sold in excess of 1.4 million vehicles worldwide.

Currently, it is running fi fth (with a 6.9 per cent market share) in the United States, making Dodge the fi fth-largest automotive nameplate there and

the eighth-biggest globally.

Phoenix rising - next page

Dodge draws near

CHRYSLER SAFE: JENKINSTHE arrival of Dodge will supplement, rather than replace, the Chrysler-badged range of vehicles in Australia, according to Chrysler Jeep Australia boss Gerry Jenkins.Notwithstanding the next-generation Neon becoming a Dodge vehicle, Mr Jenkins said he did not see Dodge as a brand that would cannibalise – or compromise – Chrysler.“The whole point of introducing Dodge in Australia is to build incremental growth,” he told GoAuto. “So we’re not looking at taking away from Chrysler at all but to build upon our existing volume base.”

Dodge is expected to handle passenger-car-based small 4WD vehicles and possibly medium and large r e c r e a t i o n a l - s t y l e trucks like the Ram,

while Chrysler will stick with its niche PT

Cruiser, sports car (Crossfi re coupe and convertible) and upmarket (300C) offerings.

Not coming: Charger SRT-8

Gerry Jenkins

Dodge draws near

www.honda.com.au/discover+honda/corporate/careers.htm




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• Are you a confident, pro-active, charismatic individual, able to foster strong client relationships and build a business unit?

• Do you have substantial finan-cial experience in the automo-tive industry or within a finance house?

• Are you looking for the oppor-tunity to develop yourself and your long-term career prospects in a flexible and rewarding environment?

We are looking for three dynam-ic individuals with motor indus-try specific skills and experience in Finance & Insurance. Working closely with our National Sales Team to secure, develop and manage a new portfolio, these three positions require people based in Melbourne, Brisbane and Sydney. Periodic travel may be required.

We are offering the right individ-uals very competitive packages as well as a fantastic opportunity for self-development and growth as an established International Finance Company launches itself in the Australian marketplace.

If the above portrait describes you, please email your resume to Fiona at: [email protected] or call on (03) 9830 2466

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DESPITE the youthful, designer image Chrysler

is chasing for Dodge, the marque has quite a

history with old-timers here.

The fi rst to arrive in Australia was the 1935

four-cylinder DM series.

It was shortly joined by six-cylinder derivatives

that lasted throughout the 1940s, while small

numbers of the Kingsway – along with similar

vehicles from the now-dead Chrysler marques De

Soto and Plymouth – were also sold up until the

late 1950s.

But Holden’s early domination in Australia

– by 1958 it commanded 50 per cent of the market

– prompted Chrysler to build a challenger based

on the compact US Plymouth Valiant.

So Dodge crept upmarket in the 1960s with

the Phoenix four-door range, available until 1972

in 5.2-litre V8 sedan and 6.3-litre V8 Hardtop

guises.

This Ford Fairlane-dwarfi ng luxury car

contender was the fi nal Dodge offi cially sold in

Australia. It was replaced by the embarrassingly

unsuccessful VH Valiant-based Chrysler-by-

Chrysler.

And as its name suggests, the Phoenix was

rebuilt from the ground-up in Adelaide from

Canadian-sourced ‘completely knocked down’

parts.

A Dodge-badged Chrysler VE Valiant ute was

also marketed in Australia from 1967 to 1970.

These old models, along with a large number of

private imports from over the years, are the basis

of a vibrant Dodge club scene today.

And such loyal brand enthusiasm hasn’t gone

unnoticed by Chrysler Jeep Australia.

“We’re going to continue to support them and

showcase their vehicles at meets,” said Chrysler

Jeep Australia boss Gerry Jenkins.

“It seems to be a good way to build some

relationships with Chrysler and Jeep and Dodge

enthusiasts so that’s part of our core strategy to

continue to do so.”

Phoenix rising1960 Dodge Phoenix

Phoenix rising

www.horwath.com.au/expertise/motor/events_accounting.asp#a




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TOP UP YOURBUSINESSWITH CALTEX.

Caltex is now delivering our full range of world-class fuels and oils to dealerships

and OEM’s: Havoline, the oil used by V8 Supercar Champions, Delo, Vortex

Premium and Vortex 98, and extended life coolant. To find out more, click here.

Or call Steven Thomas on 0423 894 007 to discuss your requirements.

The new sitesQLD: Bundaberg, North Brisbane

NSW: Southern Highlands, South Coast area, Lismore

VIC: Ballarat, Mildura

SA: Mt Gambier

WA: Albany

NT: Alice Springs service point


VOLKSWAGEN Group Australia will increase its retail

presence for mainstream passenger cars and commercial

vehicles, expanding the number of dealerships to 60 by the end

of this year. It currently has 50 retail outlets.

“We need to feed the network,” said VW Group Australia

general manager – press and public relations, Matthew Wiesner.

“From fi ve dealers in Sydney in July 2004, we now have 10

– including Penrith.

“The increase in regional and rural appointments is partly

driven by the increase in diesel sales as well as commercial

vehicles.”

A service point in Alice Springs is also slated, to help facilitate

Volkswagen’s commercial vehicle push, particularly in the

camper home areas with T5 and LT models, as well as backing

up the wanderlust of Touareg buyers.

Volkswagen also intends to further its commitment to its

specialised commercial dealer networks as the ramp-up of

new models – started last year with the introduction of the T5

Transporter line – continues.

“The commercial centres make sense for better customer

service, more focused and specialised product knowledge, and

piece of mind for buyers,” Mr Wiesner said.

The recently introduced Golf-based Polish-built Caddy light

commercial van, as well as an all-new version of the big LT van

later next year, could also do with the support.

VOLKSWAGEN’S forthcoming new-generation Passat, due in the fi nal quarter of 2005, will be the fi rst of several vehicles to spring from the PQ46 platform underpinning it, including a long-awaited folding-roof coupe-convertible.Heavily based on the 2004 Concept C project, the steel-roofed cabriolet will sit in size between the Golf and Passat, making it slightly larger than the Peugeot 307 CC and Renault Megane opposition.

A full-sized people-mover to rival the Honda Odyssey and others of its ilk should also spring off PQ46, replacing the decade-old Sharan MPV co-developed with Ford. A development of the all-new Passat, known internally as the B6 series, for the growing Chinese market is also in the pipeline. The 1981 B2 Passat-derived Santana sedan has been built there for most of that time, helping VW to achieve a particularly strong following.

VW fuels dealers

Concept C

PASSAT SPIN-OFFS IN THE WORKS

VW fuels dealers

www.caltex.com.au




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CADILLAC XLR-VCASH-STRAPPED General Motors has already launched 16 new models at motor shows this year,

but that didn’t stop the world’s largest car-maker unveiling four more in New York.

Biggest news is a supercharged V8 version of the Cadillac XLR roadster, a model

that could become the fl agship of an Australian Cadillac range if Holden can make the

business case for local right-hand drive conversions work.

Like the 298kW 5.7-litre LS6-powered CTS-V sedan, the fi rst V-series XLR

promises sub-fi ve-second 0-100km/h acceleration.

But the XLR-V does it with a 328kW/576Nm supercharged 4.4-litre Northstar V8

with a rear-mounted 6L80 Hydra-Matic six-speed auto – 90kW and 156NM more than

the standard rear-drive XLR’s 4.4 DOHC V8 and more than any factory Cadillac before it.

If eventually sold here, the ultra-fast, ultra-luxurious two-seat steel-roofed convertible – which also

features hand-crafted leather, GM’s fi rst adaptive lighting system and 19-inch wheels – would be priced above $150,000.

GM also used New York to announce production SS versions of both the 2006 Chevrolet Malibu and Malibu Maxx sedans, complete with a 180kW 3.9-

litre VVT V6 and specifi c styling including segment-biggest 18-inch wheels.

While the front-drive SS Malibus offer Hydra-Matic 4T65-E four-speed autos, the Nurburgring-tuned 2006 Chevrolet TrailBlazer SS – also unveiled in

New York, as GM’s fi rst SS-badged SUV – offers HSV’s 6.0-litre LS2 V8, sub-six-second 0-100km/h performance and lower ride height.

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More show stars from the New York Auto Show... MARTON PETTENDY reports

TOYOTA I-UNITTOYOTA used New York to reveal its latest take on the personal mobility concept.

A quirky one-passenger vehicle, i-unit seeks to “balance freedom of movement,

harmony with society, and harmony with the Earth’s natural environment”.

Inspired by a leaf, i-unit’s lightweight and compact design claims to minimise

occupied space and energy consumption.

Made from recyclable and decomposable materials, it allows its driver to

move among people at low speed in upright mode, and reclines in high-speed

mode for greater stability.

Toyota says drive-by-wire technology and “intuitive handling” allow its

driver to manoeuvre quick turns and drive at high speeds, while an Intelligent

Transport System permits “safe and effi cient autopilot driving in specially equipped lanes”.

Don’t expect a mass-production version any time soon.

FORD GT500FORD presented its most powerful factory Mustang ever in New York, where the 335kW-plus

Ford Shelby Cobra GT500 show car debuted as a teaser to next year’s production

version.

Co-developed by US performance car legend Carroll Shelby and Ford

SVT, the GT500 combines the look of a 1960s Shelby Mustang with

modern Ford big-block V8 performance.

Set to join Ford’s SVT Mustang Cobra range in 2006, it features a further

development of the supercharged 5.4-litre 32-valve DOHC V8 that fi rst

appeared in the limited-edition 2000 SVT Mustang Cobra R, mated to a

T-56 six-speed manual gearbox.

MORE?Go to www.goauto.com.au for details on other New York stars including:

Hyundai Accent

Suzuki X2

Jeep Commander

Mercedes-Benz R-class

Lexus GS450H

Scion T2B

Nissan Sport Concept

www.goauto.com.au




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Motorvation Graphics, continues to pioneer vehiclepersonalisation, exterior/interior ornamentation, limited

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Our company designs, develops and supplies an extensiverange of products and services, giving us a wide experiencebase from which to focus on your needs. We are a full systemsupplier, from design to delivery.

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How to advertiseHow to advertise

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Are you the best in your field?

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Are you well presented, well spoken and an excellent

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WALE TO CHINA

M E L B O U R N E -BORN General Motors executive, Kevin Wale, has been charged with leading the auto giant’s activities in China.

The GM Europe Vice President and Chairman of Vauxhall Motor Co and GM’s UK Operations, Mr Wall will replace Phil Murtaugh as President and Managing Director of the GM China Group.Mr Murtaugh was one of two GM executives to resign last week. Saab Cars USA General Manager Debra Kelly-Ennis was the other.Prior to assuming his position at Vauxhall, Mr Wale, 51, served as Executive in Charge of General Motors Asia Pacifi c. His numerous posts within GM have also included Director of Sales and Marketing and Director of Finance and Strategic Planning at Holden.

GM SHAKE-UP

GENERAL Motors Vice Chairman Bob Lutz and Group Vice President Gary Cowger will “relinquish” their current roles at GM North America and instead focus on their global responsibilities, in a series of senior management changes at the auto giant announced this week.GM Chairman and CEO Rick Wagoner, 52, will assume leadership for GM North America, leaving Mr Lutz, 73, to lead GM’s global product development activities and Mr Cowger, 57, to concentrate on global manufacturing and labour.

HOLDEN MOVES

HOLDEN’S former Assembly Manager, Ian Hutchings, has assumed responsibility for the day-to-day running of General Assembly, reporting to Director of Vehicle Operations, Derek Armour. The move supports the successful introduction of the fi nal stage of the new general assembly facility.

Former General Assembly Area Manager, Craig Schmidt, takes up a new and dedicated role in the general assembly upgrade project, reporting to Executive Director of Manufacturing, Rod Keane.

Former Manufacturing Engineering Manager, General Assembly, Paint Shop and Plastics, Kaher Kazem, has been appointed Area Manager for the Body Shop, reporting to Derek Armour.

Former Controller of Information Systems and Services, Malcolm Wyatt, has transferred to Controller of Global Purchasing and Supply Chain. Former Manager of Treasury and Financial Accounting, David Doolan, has also transferred to Controller of IS&S.

Former Holden Engine Operations Human Resources Manager, Angela Robertson, has a new role as HR Manager for Employee Development.

VW PRODUCTION SHIFTVOLKSWAGEN AG board member and production chief Folker Weissgerber will leave Europe’s biggest car manufacturer in June, according to a Reuters report.A Volkswagen spokesperson said Mr Weissgerber would not be replaced and that responsibility for production would be devolved to the group’s individual brands.

Kevin Wale Ian Hutchings

From left: Rick Wagoner, Gary Cowger, Bob Lutz

If you have any car industry personnel announcements, please email them to

[email protected].



mailto:[email protected]




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This week in GoAuto ProfessionalThis week in GoAuto Professionalwww.professional.goauto.com.au

Ultra-competitive segment forces strategic retreatTOYOTA Motor Corp Australia sales and marketing director, David Buttner, has blamed the intensely

competitive light-car segment for Daihatsu’s failure. Buttner admitted that when the Daihatsu brand

was formerly organised at a national level in 1975 there were just 10 competing brands in the light-car

segment. Today, there are 23 competitors fi ghting for market share. FULL STORY: CLICK HERE

Daihatsu deceased: death by a thousand cuts

Cost of distribution killed DaihatsuTHE cost of running Daihatsu as a separate

franchise, with 79 retailers to deal with, clearly

lost its appeal with Toyota Australia management,

culminating in the company pulling the plug this

week. FULL STORY: CLICK HERE

THE disappearance of the Daihatsu brand from Australia does

not spell the end of the micro-car segment, according to Suzuki

Australia general manager, David Le Mottee.

FULL STORY: CLICK HERE

Micro-cars will survive Daihatsu departure: Suzuki

Dealers react

Daihatsu deceased: death by a thousand cuts

Micro-cars will survive Daihatsu departure: Suzuki

Cost of distribution killed Daihatsu

John O'Brien's Daihatsu dealership

“It’s like losing your pet dog. You feel a bit sad about it but, at the end of the day, you look back and think you don’t have to clean it or take it for a walk any more” - Ray Pittard

“We would certainly not order one unless we have a name on it. I would need to have a home for it … and I would want to be sure I had a good solid deposit” - Jeff Wignall

“It was a good little adjunct to a car yard and the average gross on them was okay”- John O’Brien

“It may be easier from our point of view to hand in our notice and move on” - Brendan Pickering

FULL STORY: CLICK HERE

Dealers react

AUSTRALIA’S NO.1 AUTOMOTIVE INDUSTRY CANDIDATE DATABASE!

Current Hot Jobs:FLEET - Remarketing Analyst, Team Leader - Maintenance Control, Pricing Analyst, MANUFACTURING - Factory costing Accountant, Design Engineer/Admin, BDM - Global Heavy Industry, Quality Manager, DEALERSHIP - Service Manager, Advisor and Administrator. Parts - Interpreter. Admin - Showroom Reception, Stock Control, 2IC Accountant.OTHER - Sales Rep Auto Capital Equipment, Sales Rep Aftermarket Parts.

Current Hot Candidates:World Class Auto Manufacturing Production Manager, Dealer Development Manager, Fixed Ops Manager, Purchasing/Logistics Director (Auto OEM), Senior Account Manager / BDM - Fleet Leasing, Team Leader Auto Customer Service, Aftersales Marketing Manager.

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FORMORE NO MOREENDING months of speculation over the future of

its Smart brand, Mercedes-Benz has announced

it intends to implement a massive restructuring

program for its micro-car range that includes

terminating the Roadster and 4WD (ForMore)

models.

The DaimlerChrysler board will confi rm the

arrangements at the end of this month, however

the new business model calls for “intensifi ed”

development that would see the next-generation

Smart ForTwo tailored for the United States

market and its forthcoming three-cylinder petrol

engines offered to other manufacturers.

Restructuring expenses of up to 1.2 billion

Euros are being budgeted for, with the aim of

Smart reaching break-even – not breaking – point

in 2007.

XC REVISIONSVOLVO Car Australia has introduced a limited-

issue Lifestyle version of its XC90 2.5T with

standard third-row seating and leather trim at the

usual 2.5T starting price of $69,950.

Also now standard on the $79,950 XC90 T6

model (sans leather), the third-row package

– previously optional at $5100 – includes curtain

airbags, air-conditioning vents, audio headset

sockets and fold-down seats.

Pricing for the XC70 LE 4WD station wagon

has also been shifted downward to clear a path

between it and the baseline XC90. It now starts

from $64,450.

GS300 NCAP WINLEXUS achieved the highest adult occupant

protection score in its (Executive) class under

Euro NCAP last week with a fi ve-star rating.

In the frontal impact test, the car lost one

point and in the side and pole tests it achieved a

maximum point score, handing it an overall score

of 35 points.

It also achieved the top four-star rating for

child protection and a best-in-class 18 points and

a two-star rating for pedestrian protection.

PS41 GETS THE NODMITSUBISHI Motors Australia has spent more than $1.2 million in market research for its PS41-codenamed Magna replacement due on sale in October, making it the most extensively researched model in MMAL history.

Mitsubishi says the market research component aimed to ensure it delivered a “style-centric” vehicle with an Australian fl avour - presumably in contrast to the Olivier Boulay design that has polarized opinions of the current Magna’s styling.

PS41’s market testing included three styling clinics, six focus group sessions and three surveys, covering all elements of the car’s design, plus specifi cations, features and positioning.

In the fi rst clinic, the car easily scored the highest ‘fi rst preference’ for initial styling impressions compared with AUIII Falcon, VXII Commodore, TJ Magna and the previous-model Camry. FULL STORY: CLICK HERE

FRENCH-ITALIAN VAN DEALPSA Peugeot Citroen and Fiat have signed a co-operation agreement worth about $350 million Euros to develop and produce small, entry-level light commercial vehicles.

Scheduled for rollout in 2008, the new vehicles will extend the current Fiat, Peugeot and Citroen ranges, which include Fiat-Peugeot Citroen joint-venture LCVs including medium and large vans and large people movers (Citroen C8, Peugeot 807, Fiat Ulysse, Lancia Phedra). The vehicles will be produced on a new platform in Turkey at an annual rate of 135,000 units, two-thirds of which will be taken by the French.

The Australian importer of Fiat and Citroen, Ateco Automotive, has welcomed the development and in a statement said the new vehicle/s could have a strong future here.

GoAuto latest road test

Nissan Patrol TiCONVENTIONAL full-size off-road wagons like the Nissan Patrol may be the stuff of

archaeological research these days, but that doesn’t mean people are less fond of them. Stemming from the distant past where 4WDs were used to go places regular cars couldn’t, the Patrol today still conjures up words

like “rugged”, “simple” and “gargantuan”. Even an extensive facelift and further honing of the Patrol’s ability to deliver a comfortable drive experience can’t conceal the fact that underneath all the glitter is a very simple, very basic, very rugged vehicle able to do a lot more

than what most owners expect, or need it to do. ROAD TEST: CLICK HERE

LAUNCH PADLAUNCH PADAPRIL:Citroen C4 hatch redesign

Ferrari 430 Modena coupe facelift

Ford Focus hatch redesign

Kia Sportage SUV redesign

Land Rover Discovery redesign

Mercedes-Benz A-class hatch redesign

Toyota HiLux utility redesign

New model diary: CLICK HERE

Promotional Personnel, Launch Hosts, Stand Ambassadors- What are your requirements? -

Active Promo People has joined the world of Business Promotion.We are committed to keeping prices affordable.

CALL US: (02) 9280 3366 or EMAIL: [email protected]

Lexus GS300

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April 06, 2005 No. 180 UUnder thender the sspotlightpotlightKey rivals including Hyundai, Kia, Suzuki and Proton believe the combined loss of 10,000 vehicles to the local market stemming

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