MAY 06, 2016 TE INE E O OTONE Australian car industry from...

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Australian car industry from 2017Mirrat to handle one million cars a year in new Melbourne shipping terminal

Put watchdog back on its chain - FCAIIndustry body says ACCC is a cop not a policy maker and is exceeding its authority

Audi Australia in $30m growth modeInvestment earmarked for 2016 to boost staff, dealers and training as prestige car sales rise

Little trust in driverless carsBad news for autonomous car pundits as motorists fear they would be ‘unsafe’

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INFINITI OPENS ITS DOORS TO CANBERRA

Service opening for Infiniti in ACT as Japanese brand continues

network expansion

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Victoria’s new-car terminal is a giant

Mirrat terminal will eventually be able to handle one million

vehicles a year

Page 3

Audi Australia in $30m growth mode

Investment earmarked for 2016 to boost staff, dealers and training

as prestige car sales rise

Page 6

Little trust in driverless cars

Bad news for autonomous car pundits as motorists fear they

would be ‘unsafe’

Page 8

Put watchdog back on its chain - FCAI

Industry body says ACCC is a cop not a policy maker and is

exceeding its authority

Page 10

INNER-CITY LIVING BOOST TO CAR-SHARING BUSINESSES

Developers see shared vehicles as a way to attract buyers and reduce costs

LAMBORGHINI BULLISH ON AUSTRALIAN SALES

New factory, SUV will unblock waiting list from 2018

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Victoria’s new-car terminal is a giantMirrat terminal will eventually be able to handle one million vehicles a year

By IAN PORTERn VICTORIA’S new roll-on, roll-off car terminal at Webb Dock West will easily be able to handle the extra volumes required after the three major Australian car manufacturers close their doors by the end of 2017.

Part of the state’s ambitious freight handling plan, the new terminal will open in a few weeks with a target capacity

of 600,000 vehicles a year by 2025 and a massive one million vehicles by 2040.

That is just short of the 1.1 million vehicles currently being sold each year, of which around one million are imported through a number of ports, including Melbourne, Port Kembla, Brisbane, Adelaide and Perth.

The new Melbourne International RoRo and

Automotive Terminal (Mirrat) will be Victoria’s only car terminal after 2018 when Appleton Dock closes. Appleton Dock is operated by Australian Amalgamated Terminals (AAT), which also has an operation next to Mirrat at Webb Dock West.

After 2018 all car carriers will berth at Webb Dock West and Mirrat will take over the adjacent AAT

operations under the contract it won to build and operate the new terminal. The Port of Melbourne is currently building a third berth at Webb Dock West, extending the dock to 928 metres in length.

Mirrat is a subsidiary of Wallenius Wilhelmsen (WW)Logistics, the Norwegian/Swedish shipping group that carries five million cars a year around the globe, as well as 12

million cubic metres of “high and heavy” cargoes such as tractors, trains and general equipment that can be driven or carried off on wheeled trailers.

“It is the 13th terminal owned by Wallenius Wilhelmsen but is the first greenfield site established by the group,” Mirrat managing director Paul Hand told GoAuto.

Continued next page






Continued from previous page“It has been purpose built

for vehicle operations and it is the first of WW’s terminals designed specifically to handle vehicles,” Mr Hand said.

All the other terminals have been established docks that have been converted to RoRo operations.

Mr Hand was transferred from Wallenius Wilhelmsen’s terminal operations at Southampton in England and is one of the company’s most

experienced executives.“I have done a lot of

project work with Wallenius Wilhelmsen Logistics in different ports, for example Baltimore and Zeebrugge, and I have been to Korea and lots of other nice places.”

He has also worked as the port captain on ships during loading, ensuring that cars or cargo that will be first off the ships are loaded on last.

After 2018 the new terminal will be a monopoly in

Victoria and will be operating under criteria set down by the Australian Competition and Consumer Commission (ACCC). All fees charged and services offered must be the same for all ship operators, no matter whose ship is unloading at Webb Dock West, Mr Hand said.

Mirrat is still ramping up its computer systems to full operation, but the physical build is complete with a paved and/or concreted area

of 178,000 square metres, including 4800 automotive “laydown bays” (parking places) and 20,000 square metres of heavy duty hardstand for items like tracked cranes and other heavy machinery.

There is also an 8000 square metre warehouse for weatherproof storage. Last weekend it housed some steel and also a small motor show comprising a shipment of Aston Martins, Maseratis and a few Porsches.

When Mirrat assumes responsibility for the whole of Webb Dock West in 2018, the terminal will cover 359,000 square metres and have 11,000 laydown bays.

It is unlikely that the throughput will reach one million cars a year in the near future, but Mr Hand said that throughput was not the only criteria for financial success.

He said Mirrat would also offer some additional services to all importers, not just Wallenius Wilhelmsen.

Importers could sometimes use the terminal for short-term storage or they might want other services, such as washing cars or checking batteries.

“For instance, if an importer

wants to rent 50 spaces for 100 days, then we could do a reduced rate. But that would have to be available to every OEM (car-maker).”

Apart from its planned throughput, the new terminal will also set standards in terms of being purpose designed with all the latest systems and standards.

Part of the tender involved the creation of a truck booking system to help control the arrival of trucks and calm truck traffic around the port. There are 16 truck waiting bays on the Mirrat site.

“It is a change to the way the industry is working at the moment,” he said. “Systems like this are used in container terminals, so I don’t think it is going to be that much of a surprise (to drivers).”

Waiting truck drivers will have access to a coffee shop near their parking bay outside the protected Customs compound if they have time to spare before their allocated pick-up time while the stevedore drivers, who actually drive the cars off the ships and onto the laydown area, will also have a serviced rest area inside the Customs compound.

Continued next page






Continued from previous pageWebb Dock West has already

been visited by the world’s largest car carrier, the Hoegh Target, which is 200 metres long and can carry 8500 cars. Most car freighters carry between 4000 and 6000 cars.

Mr Hand said not all cars are discharged at the one port, as the vessels berth in several ports on their way around the Australian coast. The average discharge in Melbourne was around 1000 vehicles.

Mirrat is not involved in the loading or unloading of cars so Mr Hand is not able to say how long it takes to discharge 1000 cars. That is up to the stevedoring company hired by

the ship operator.The only hail netting on

the site is in the area still run by AAT and it is there to protect Toyota Camrys being exported to the Middle East from the Altona factory.

“If there was an industry requirement for it, we would put it in,” Mr Hand said. “There just isn’t the demand for it here.”

Mr Hand said WW wanted the new terminal to be as environmentally friendly as possible and this aim influenced every part of the project.

He said there was a distinctive odour when the builders dumped thousands of

tonnes of crushed wine bottles to act as the sub-base for the asphalt. In all, 200,000 tonnes of recycled materials were used.

Photovoltaic panels on the warehouse provide 80 per cent of the electricity used by the administration building, CO2 emissions caused by the production of concrete were reduced by the addition of fly ash and other substitutes and LED lighting throughout the terminal will use 30 per cent less power than normal lighting.

“We also have the ability to harvest two million litres of rain water from the warehouse roof, if it ever rains again.”

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Audi Australia in $30m growth modeInvestment earmarked for 2016 to boost staff, dealers and training as prestige car sales rise

By NEIL DOWLINGn LUXURY car-maker Audi is planning to invest more than $30 million in Australia for new dealerships, more dealer training to improve quality and the adoption of new marketing tools to rein in its German rivals, Mercedes-Benz and BMW.

Included in the plans are two new dealerships – one in the southern Perth suburb of Myaree and another in the NSW Central Coast town of Gosford – with other outlets committed to upgrades and

renovations. Audi Australia managing

director Andrew Doyle said a key component to the Australian investment would be Audi’s commitment to a new global training system that will boost the number of trainers and improve sales and service quality.

This year, Audi will add 7500 new staff to its international operations and is particularly seeking engineers in digitisation and electrification fields.

Australian staff numbers will be increased by 10 per cent in 2016 and the company will double its Sydney headquarters office space

through a building extension.“The investment is in

people,” Mr Doyle said. “We have more specialists with new ideas, new energy and new passion.”

Audi Australia sales rose 20.1

per cent last year compared with 2014, with a 2015 total sales figure of 23,088, whereas rivals BMW and Mercedes-Benz increased sales by 10.1

per cent and 18.0 per cent respectively, relegating Audi to third place in the luxury car segment.

“More people are choosing Audi,” Mr Doyle said. “We are closing the gap in 2016.

“There’s no doubt that the premium market segment is growing. Our March year-to-date sales are up 12.4 per

cent compared with the same period in 2015.”

Mr Doyle said that in 2014, Audi Australia’s sales were in 18th position on the company’s market ladder, a position from which Australia has recently climbed.

“In 2015 we moved to 13th and now, on year-to-date figures, we are 10th,” he said.

“I don’t expect to stay there for the rest of the year but it shows how we are growing market share. The new models coming this year will increase our position.”

“The investment is in people. We have more specialists with new ideas, new energy

and new passion”

Audi Central Coast





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Audi’s $340m global ‘scandal’ war chest

BREAKOUT

n LAST year, Audi posted a $A7.15 billion global operating profit despite allocating a $A340 million war chest to cushion the effects of the Volkswagen Group emission scandal in the US.

It also allocated $A4.5 billion for research and development in electronics and electric-vehicle research and is well within its 8-10 per cent investment return on sales, according to

Audi Australia managing director Andrew Doyle.

He said the war chest would cover any legal action, costs attributed to its customers and expenses associated with restoring the diesel engine to the correct emission standards.

Only the United States market 3.0-litre V6 turbo-diesel engine was affected by the emission issues, not the four-cylinder EA189 used by Volkswagen and Skoda-badged models.

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Little trust in driverless carsBad news for autonomous car pundits as motorists fear they would be ‘unsafe’

By NEIL DOWLINGnMOTORISTS in two of the northern hemisphere’s most mature car markets have shown alarm at the thought of being driven on public roads by an autonomous vehicle.

According to recent surveys, drivers are demanding they want to drive the car themselves and believe a human should always be in control.

Three surveys – two from the United Kingdom and one from the United States – show that the majority of drivers say they will not relinquish the

steering wheel because they fear autonomous cars would be unsafe.

Despite the development of driverless cars and the general acceptance by both the automotive industry and media that these vehicles are inevitable, those who will operate these cars are not so sure.

In fact, a massive 65 per cent of respondents to an IAM RoadSmart (formerly the Institute of Advanced Motorists) survey in the UK said a human should always

be in control of a vehicle.The survey was conducted

with 1000 British motorists and supported by a separate poll among RoadSmart’s 92,000 members.

While two-thirds wanted humans in control, 34 per cent went on to say autonomous vehicle technology is “a bad idea”, although there is room for some doubt because nearly half (45 per cent) said they were “unsure” of the technology.

Concurrently, UK magazine What Car? held its own survey and produced similar results.

It reported that 51 per cent of respondents said they would feel “unsafe” in an autonomous cars.

But one in four said they were more than relaxed with the concept, with 26 per cent indicating they would happily sleep in a driverless car, watch TV or browse the internet.

Similarly, a US survey by the American Automobile Association last month reported that 75 per cent of US drivers would feel “afraid” to ride in a driverless car.

Only one in five said they

would trust the vehicle if they were inside, according to the survey conducted by the AAA through 1832 phone interviews early this year.

However, the AAA said motorists that owned vehicles with semi-autonomous aids – such as autonomous emergency braking and adaptive cruise control – were more likely to trust driverless cars.

The AAA reported that age and gender differences affected the participants’ trust levels about driverless cars.

Continued next page





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65%Think a human being should always be in charge of a vehicle

20%Think that driverless cars were a ‘good idea’

34%Think that driverless cars are a ‘bad idea’

22%Think that driverless cars will ‘be the norm on UK roads’ within years

55%Think that driverless cars will never be the norm on UK roads

16%Think that driverless cars are an ‘exciting prospect’

RESULTS OF THE UK IAM ROADSMART SURVEY:

24%Agreed with the proposition

15%Disagreed with the proposition

60%Said ‘wait and see’

When told that 95% of accidents were down to ‘human error’ and that there was ‘a strong case for taking driver control out of the equation’:

32%Said yes they would

38%Said no they would not

29%Said that they were unsure

When asked whether they would ‘consider using a driverless car’:

In the poll conducted among IAM RoadSmart members:87% - think that once driverless cars are readily available driving should not be banned by law

92% - would welcome automated systems that stopped tailgating

Continued from previous pageIt said that 82 per cent of

baby boomers reported being afraid of riding in a self-driving car and even a majority (69 per cent) of the younger generation were afraid of riding in a driverless car.

More women - 81 per cent - reported such fear of riding in self-driving vehicles compared with 67 per cent of men.

But US motorists are embracing technology. The survey said that 61 per cent of US drivers wanted adaptive cruise control, lane departure warning, self-parking, or another type of semi-autonomous technology in their next car.

Baby boomers (born between 1946 and 1965) were most likely to cite safety as a reason for wanting advanced

car technologies.But millennials (born

between 1982 and 2000) were more likely than baby boomers to state they wanted “convenience” and “the latest technology”.

Stress also played a role in the decision to contemplate semi-autonomous cars.

The survey revealed about half of women thought that semi-autonomous features in such cars would reduce stress and 42 per cent of men agreed.

The result was similar in the UK. The IAM RoadSmart survey found that people welcomed the hi-tech advances that improve vehicle safety, but wanted to maintain control of a car – even though autonomous technology will be able to do it for them.

IAM RoadSmart chief

executive Sarah Sillars said British motorists had embraced technological advances in cars but were strong on retaining the right to drive.

“Intelligent cars will deliver a step-change in road safety by targeting the human errors we make from time-to-time,” she said.

“At IAM RoadSmart we believe a well-trained driver and an ever-vigilant car is a win-win scenario for the future.”

She said the government was to consult on how the UK could lead the development of autonomous vehicles soon.

“One could see a time when motorists might be restricted to driving (their own cars) on designated roads – and possibly just for pleasure – rather than for work or getting from A to B,” she said.



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Tony Weber

Put watchdog back on its chain - FCAIIndustry body says ACCC is a cop not a policy maker and is exceeding its authority

By NEIL DOWLINGn THE federal Chamber of Automotive Industries (FCAI) is claiming that Australia’s consumer watchdog has overstepped the mark in the parallel-imports debate and is now playing a role in the politics.

FCAI chief executive Tony Weber told GoAutoNews Premium that the Australian Competition and Consumer

Commission (ACCC) was “a regulatory policeman, not an organisation involved in the politics of the country.

“Its statements are completely contrary to that of the federal government which spelled out the ability for individuals to privately import new cars – not for the benefit of businesses.”

Mr Weber was responding to comments made during

a speech by ACCC commissioner Roger Featherston at the Australian Auto Aftermarket Conference in Melbourne in late April and endorsed by ACCC chairman Rod Sims in a follow-up op-ed article in the commentary pages of The Australian newspaper.

The proposal to allow individuals to import one low-mileage new car from

the United Kingdom or Japan at the rate of one every two years was announced earlier this year by the federal minister for major projects, territories and local government Paul Fletcher.

It has become a contentious issue marked by varying interpretations of the proposal, misinformation by Liberal ministers, accusations of heavy lobbying by New

Zealand parties and now industry confrontations.

At stake is the profitability of Australia’s $17 billion automotive dealer network and the secure employment of 67,000 Australians.

In his speech, Mr Featherston said the proposal was about fair competition and put the onus firmly on the buyer of any imported car.

Continued next page





Continued from previous page“The ACCC sees these

reforms as good for competition and for consumer choice,” he said.

“Consumers should be entitled to weigh up all the relevant considerations and decide whether personally importing a car is right for them, or whether sticking to the established system of dealerships suits them better.”

Mr Featherston took a swipe at the FCAI, calling the chamber “far fetched” for saying consumers could end up with an unsuitable vehicle for Australian conditions.

Mr Weber countered by saying

Australia had 400-plus car models and competition didn’t need to be open any further.

On the subject of unsuitable cars for Australian conditions, Mr Weber said every Toyota Camry or Corolla sold in most markets around the world was different.

“It has different oils, different radiators, different tyres and so on,” he told GoAutoNews premium.

“What about the engines? They’re different because every country has different fuel quality. Australia’s fuel quality is poor – it’s rated 63rd in the world alongside Mexico for sulphur content.

We have different fuel and we need cars and engines made for our conditions.

“It can come down to something as simple as getting an updated map for the sat-nav system or being given an owner’s manual written in English.”

Mr Featherston also indicated Australian businesses could act on behalf of consumers by importing cars – a move he said would make warranty protection “more readily available than if individual consumers are required to purchase their vehicle directly from an overseas entity that may have

no connection with Australia.“The proposed laws will

only have a negative effect on established Australian dealerships if their prices are not competitive, or if consumers cannot purchase the specifications of vehicles they want,” he said.

Mr Weber said that was directly against the spirit of the proposal that aimed to allow individuals, not companies and businesses, to import specific vehicles.

He also said there was concern about the amount of lobbying being done to ensure the proposal was passed.

“There are some people in

New Zealand who have been through the grey-import and parallel importation of cars who are positively salivating at the prospect of dumping cars onto the Australian market.

“This would be a huge money spinner for them. But the consumer, like in New Zealand, will be left with cars without service and repair backup and operators who vanished in the night.”

The proposal is expected to be discussed in federal parliament this year but Mr Weber said “there is still a lot of work to do” and said he was unable to estimate a time frame for for the battle ahead.

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Infiniti opens its doors to Canberra

By TUNG NGUYENn FLEDGLING Japanese luxury car-maker Infiniti is continuing its Australian retail expansion with a new service outlet set to open in Canberra next month.

Bringing its national network to nine outlets and breaking into the Australian capital for the first time, the Infiniti Service Centre Canberra – located in the south-western suburb of Phillip – will concentrate on parts, servicing and other areas of aftersales support.

Prospective ACT customers will still be required to travel

to a sales outlet – in Sydney or Melbourne, for example – for the vehicle purchase.

Last month, Infiniti announced a new sales and service centre in south-west Sydney – its third in Australia’s largest city – and has one dealership each in Melbourne, Brisbane and Perth, as well as a service centre in North Adelaide and a brand centre on the Gold Coast.

Infiniti Cars Australia managing director Jean-Philippe Roux described 2016 as “a busy year of

expansion for Infiniti, both globally and in Australia”.

“In the previous six months, we have announced and opened new Infiniti retail and service centres in Sydney, Adelaide and Perth, doubling our national service coverage,” he said.

Infiniti’s latest service centre will be operated by Rolfe Motor Group, a prominent multi-franchise dealer group in the ACT with other brands including Honda, Mazda, Volvo and Subaru in its stable.

Rolfe Motor Group founder Richard Rolfe said joining

the Infiniti family was “an important and exciting investment” and that the Japanese luxury marque had “assembled each of the parts necessary for long-term market success”.

Mr Roux previously told GoAuto that Infiniti was preparing itself for a busy year with new product rollouts and “up to 10 new dealerships across the country”.

These new vehicles include the Q30 hatch, due in the third quarter of this year and positioned to steal sales away from BMW’s 1 Series, Audi’s

A3 and Mercedes’ A-Class, an updated Q50 sedan, arriving by year’s end with a Nissan GT-R-derived twin-turbocharged powerplant, and the new Q60 sports coupe. Infiniti launched its refreshed Q70 large luxury sedan in February.

Infiniti has sold 191 new vehicles in the first quarter of this year, a 35.5 per cent increase year-on-year, more than half of which comprised its Q50 luxury mid-sizer (103). Last year saw Infiniti record a total of 574 sales, a 30.2 per cent increase over 2014.

Service opening for Infiniti in ACT as Japanese brand continues network expansion





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New resource from GoAutoNews Premium. Who owns who and who’s sharing?

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AUDIFounded in 1910 by August Horch, who moved on from his previously established German luxury car-brand Horch. Audi would form one of the four rings of the Auto Union brand, along with DKW, Wanderer and Horch. Auto Union continued to make small two-stroke cars and motorcycles under the Auto Union and DKW names. The company was bought in 1959 by Daimler-Benz until sold in 1964 to Volkswagen which reintroduced the Audi name in 1965. Audi was to have been broken up but its 100 model of 1968 was a sales success. Audi’s front-wheel drive layout would become the platform for future Volkswagen products. The Audi Group now includes Italdesign Giugiaro, quattro GmbH, Lamborghini and Ducati. Audi is working with Sanyo to develop electric vehicles and shares some of its components with Volkswagen products.

ALLIANCES: NEXT PAGE

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ALFA ROMEOPart of Fiat Chrysler Automobiles. Started car production in 1910 and is noted for making one of the longest-serving engine designs, the twin-cam four-cylinder launched as a 1.3-litre in 1954 and retired as a 2.0-litre in 1995. Now producing product only in Italy and will move to front-engine rear-drive and front-engine all-wheel-drive layouts to promote its sports heritage. Planned drivetrains shared with Fiat and Ferrari. New mid-size prestige Giulia model was delayed to production because FCA boss Sergio Marchionne didn’t like the styling.


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BMWMajority (46.7 per cent) owned by brother and sister Stefan Quandt and Susanne Klatten and the remainder (53.3 per cent) in public hands. Owns Mini, Motorrad (motorcycles) and Rolls-Royce. It bought the Rover Group in 1994 and in 2000, sold MG and Rover to a capital equity group Phoenix, then Land Rover to Ford. It retained Mini. It bought Husqvarna motorcycles in 2007 and sold it to KTM in 2013. Has agreements in place to use Toyota fuel-cell technology and co-develop a sports car range. It supplies Toyota with diesel engines for mid-size cars in Europe and is in a joint-venture with Toyota for at least two new sports cars. BMW’s rear-drive philosophy has been dumped as it adopts the Mini front-drive platform to some segment BMW products.


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DODGEPart of Fiat Chrysler Automobiles. Brothers John and Horace started making cars in Detroit in 1910. John was also vice-president of the Ford Motor Company. The brothers died of pneumonia and influenza in 1920. The company continued to slide from second to fifth in sales before being bought by Chrysler in 1928. It entered the muscle-car market in the 1960s with Charger, Coronet and Super Bee nameplates. When Chrysler merged with Daimler in 1998, the Plymouth brand was dropped and Dodge became the entry-level brand. Dodge is now integrated into Fiat Chrysler Automobiles.

ALLIANCES: CHRYSLER, FIAT

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GENERAL MOTORS


Founded in 1908 as a holding company for two car makers, Buick (US) and McLaughlin Car Company (Canada) owned by businessman William C Durant. GM bought a string of car and truck companies but by 1910 the new-car sales fell and company debt escalated, leading to banks taking control of the company. Durant left and founded Chevrolet in 1911 and rebuilt his GM shareholding to again take control in 1916. The car market collapsed in 1918 and Durant left

the company. Under Alfred Sloan, GM Corporation expanded and only slowed in the 1980s. It led global sales from 1931 to 2007. GM’s innovation made it the first with electric starter (1911), turbocharger (1962), automatic transmission (1939) and mass-production V8 (1914). GM now produces vehicles in 37 countries and has 13 brand names. It owns 82.9 per cent of Daewoo Korea (SAIC owns 9.9 per cent) and 20 per cent of Tunisian carmaker IMM (Isuzu 10 per cent, Tunisian company GMT

70 per cent). It has joint ventures in China with Shanghai-GM (GM has 50 per cent), FAW-GM (GM has 50 per cent) and SAIC-GM-Wuling (GM has 44 per cent). Has joint ventures in Russia (GM-AvtoVAZ with GM at 50 per cent), Pakistan (Ghandhara Industries), General Motors Egypt, General Motors India, GM-Uzbekistan (GM 25 per cent) and Isuzu Truck South Africa. As part of its restructure after financial collapse in 2009, it borrowed money from the government and closed

three brands - Pontiac, Saturn and Hummer - and sold Saab. GM also partners with other companies in technology. It shares its fuel cell and hybrid technology with Honda. It sold 7 per cent of PSA Peugeot Citroen in 2013 to Dongfeng. It previously held shares in Subaru (1999-2006), Suzuki (1981-2008), Isuzu (1971-2006) and Fiat (2000-2005). GM plans to import from China for the first time, bringing in the Buick Envision SUV from its joint-venture SAIC factory.

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HAVALHaval Motors started as a sub-brand of Great Wall Motors making vehicles in 2002 and has been the biggest selling SUV brand in China for the past 13 years. In 2014 it sold 519,000 vehicles - up 23 per cent on 2013 - putting it in the Top 10 SUV makers of the world. Its new factories make it capable of producing 1.8 million SUVs a year. Haval became an independent company in 2013. It now has a factory-owned distribution presence in Australia, separate to that of its parent, Great Wall Motors. Haval is an SUV manufacturer with eight models with three currently in the Australian market, the H2, H8 and H9.

ALLIANCES: GREAT WALL

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SMARTPart of Daimler. Originally a concept by watchmaker Swatch, it entered a development arrangement with Volkswagen (1991-1994) then with Daimler AG. Daimler took control in 1998. It ceased sales in Australia in 2015. Smart continues making the two-seater ForTwo coupe and cabrio. The new ForTwo and ForFour (four seats) models for Europe are based on the Renault Twingo platform with engines from Mercedes-Benz.

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MITSUBISHIThe Mitsubishi conglomerate includes Mitsubishi Motors Corporation (MMC) that had its beginnings making its Model A in 1917 that was a copy of a Fiat sedan. Only 22 were built. It next produced a vehicle in 1937, the 4WD PX33 sedan, that was intended for military use. After the war it made scooters and three-wheeled vehicles and Willys Jeeps and sedans in knock-down form. Licensed Mitsubishi Jeeps remained in production until 1998, 30 years after Willys dropped the model. It made the Mitsubishi 500 in 1960, then the

Minica kei car in 1962, the Colt 1000 in 1963 and the Galant in 1969. MMC was formed in 1970 and uses the same three-diamond logo as Mitsubishi’s 40 other companies. Chrysler bought a 51 per cent share in 1971, then sold its Australian arm to Mitsubishi (1980-2005). Mitsubishi increased its global presence and pre-empted the SUV wave in Japan with models that were instant successes. Chrysler sold all its shares in MMC in 1993 and Mitsubishi took over their joint-venture US factory. It will close this factory in 2016. The Daimler-Chrysler merger of 1998

was followed by the pair buying a 37.3 per cent share in MMC in 2001 before selling out in 2005 with a $US800 million loss. Mitsubishi was a partner with Volvo to built the Mitsubishi Carisma and Volvo S40/V40 in the Netherlands from 1996. Mitsubishi also collaborates with PSA Peugeot Citroen to make the i-MiEV electric car as a Citroen, the Outlander as a Peugeot 4007, the ASX as the Citroen AirCross and Peugeot 4008, and diesel engines. Proton of Malaysia made Mitsubishi cars under license and later adopted major components for use in Proton cars. Hyundai

built its first car, the Pony, from 1975 using Mitsubishi components and Mitsubishi held a 10 per cent stake in the Korean company until 2003. It has a joint venture with Indian car maker Hindustan to produce the Pajero 4WD, a joint-venture with the South African Motor Corporation, and four joint ventures with Chinese car makers. It has a joint-venture agreement with Nissan-Renault that is yet to be activated and makes its Triton 4WD dual-cab ute for Fiat in South America, returning the favour first made at Mitsubishi’s beginnings in 1917.

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OPELA German bicycle company that produced its first car in 1899 then built Darracq cars from 1901 until its own cars were made from 1906. By 1914 it had grown to be Germany’s biggest car maker. In 1929 General Motors bought 80 per cent of the company, increasing this to 100 per cent in 1931. It started building trucks again in 1946 and cars from 1948. It mass-produced the world’s first monocoque (unibody) construction with the 1931 Olympia, made rocket-propelled speed cars (1928), lost the toolings for its Kadett small car to the Russians in 1945 and plays the major role in GM platform design and engineering. Opel now has 11 factories in seven countries. In its own name, it had a brief presence in Australia in 2013. Its products, including Insignia and Astra, are now badged as Holden.

ALLIANCES: GENERAL MOTORS, HOLDEN

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PORSCHEStarted in 1931 as an automotive design and engineering consultancy by Ferdinand Porsche. His son Ferry made the Porsche 356 car in 1948. It was the first Porsche-badged car and the first sold by Porsche. The 911, designed in part by Ferry’s son Ferdinand “Butzi” Porsche, was launched in 1964. Its rear-engined origins were challenged with the V8-engined 928 of 1977 (until 1995), the Volkswagen-partnered 914 (1969-1976) and 924 (1976-1988), the 944 and more lately its SUVs, Panamera and mid-engined Boxster/Cayman. It is the world’s largest race-car manufacturer and has won Le Mans 17 times, Targa Florio 11 times, the Paris-Dakar twice and had a Formula One win in 1962. It became part of the Volkswagen Group in 2013 and the collaboration formed from the company’s inception continues. Porsche is now two companies - SE which is the holding company (including the Porsche family members) that owns 50.7 per cent of Volkswagen AG - and Porsche AG that is owned by Volkswagen AG and is the car manufacturer.


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RENAULTStarted in 1899 by the three Renault brothers after selling its first car the previous year. It started making its own engines from 1903, expanded into trucks and buses and during WW1, as well as machinery, ammunition, tanks and V8 aircraft engines also made by Rolls-Royce. After this war it made cars ranging from very small to limousines that competed with Cadillac. During the second war it made trucks. Owner Louis Renault was accused of collaborating with the Germans and died in prison and the French government took control of the company. It launched a successful line of cars including the rear-drive 4CV in 1946 (until 1961), Dauphine

(1956-1967), the 8 (1962-1973), 10 (1965-1971), 16 (1965-1980), 12 (1969-2000) and 5 (1972-1996). It formed a partnership with American Motors Corporation and built the Rambler (1962-1967) under license in Belgium. In 1979 it bought a 22.5 per cent stake in AMC, upped to 47.5 per cent in 1980 and resulting in Renault cars sold in the US and AMC-owned Jeeps sold in Europe. It sold the AMC share to Chrysler in 1987. It owned 44.6 per cent of Mack Trucks in 1983, transferring this to a subsidiary in 1987. It also bought Dacia of Romania, which had built Renaults under license since 1968, in 1999 and forged a partnership in 1974

to produce V6 engines with Volvo and Peugeot. It established a factory in Australia from the mid-1960s until 1981, also making Ford Cortinas and Peugeots. Cost-cutting in the 1980s saved the company from bankruptcy and in 1990 introduced new models. In 1996 it was privatised with the reduction of the French government stake. It sought a partner and signed as an ally of Nissan in 1999, took control of Samsung in 2000, sold its shares in Volvo in 2012, and in 2010, Renault-Nissan formed an alliance with Daimler to supply diesel engines in return for Mercedes petrol engines. The French government increased its stake in Renault-Nissan to 19.73 per

cent in 2015. Renault has a 43.3 per cent stake in Nissan, 1.55 per cent of Daimler, 25 per cent of AvtoVAZ of Russia and controls Dacia (Romania) and has an 80 per cent share of Renault Samsung (South Korea). Renault has, since 2012, been supplying engines for the Mercedes A-Class and B-Class. The Renault Twingo has shared components with the Smart ForTwo. It has a joint venture with Mitsubishi (yet to be activated). Renault bought back its Formula One team from Lotus Team owner Genii Capital for only about $2 (plus about $5 million paid to extinguish its UK tax bill).

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SUBARUIt is the car making division of Fuji Heavy Industries that was the post-war merging of five automotive business. It launched its first car in 1954, the 1500, followed by the 360 in 1958. It introduced its now-signature boxer engine design in 1961, the all-wheel drive layout in 1971 and the first boxer diesel car engine in 2009. It was 20.4 per

cent owned by Nissan (1968-1999) which led to component sharing and Nissan using Subaru’s bus designs. The first 4WD wagons used Nissan rear differentials and the four-speed Subaru automatic was used in the first Nissan Pathfinder. Subaru’s all-wheel drive design was shared with Renault. General Motors bought Nissan’s 20.4 per cent share in 1999,

leading to model sharing including the Forester becoming a Chevrolet for the Indian market and the Opel Zafira being rebadged the Subaru Traviq for Japan. GM sold the Subaru Impreza in the US as the Saab 9-2X. Subaru is now owned 16.5 per cent by Toyota. It has a manufacturing plant in Indiana that produces the Toyota Camry until 2016 when it

reverts to Subaru-only production. It also builds the Toyota 86 sports coupe (also known as the Scion FR-S in North America) and its Subaru clone, the BRZ, at the Subaru factory in north-east Honshu. Toyota flagged a convertible 86 but the coupe is so successful that Subaru doesn’t have the plant capacity to add another model.

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SUZUKIIndependent. Started as a loom-making company in 1909 and built its first car in 1937 but never reached production status. After the war, it returned to loom-making and diversified to motorcycles in 1952. By 1954 it was seling 6000 motorcycles a month. It produced its front-wheel drive 360cc two-stroke Suzulight sedan, with independent suspension and rack and pinion steering, from 1955. It expanded its motorcycle

division, adding outboard engines and industrial engines. Debuted its LJ10 two-stroke Jimny 4WD in 1970 (a bigger version sold in Australia in 1975), won the 1971 250cc and 500cc world motocross championships, launched the world’s first production rotary-engined motorcycle, the RE5, in 1974, the Katana 1100cc motorcycle in 1981 and the world’s first ATV quad-bike in 1982. General Motors bought 5.3

per cent of Suzuki in 1981 in a co-operative that included Isuzu (until 1994). GM increased its stake to 10 per cent in 1998 and to 20 per cent in 2000. Suzuki entered a joint venture with Fiat in 2003 to share an SUV (the SX4). GM sold its stake down to 3 per cent in 2006. Suzuki entered a joint venture with Nissan to sell the Nissan-made Frontier 4WD ute as the Suzuki Equator. Volkswagen bought 19.9 per cent of

Suzuki’s shares in 2009 and wanted to gain control of Suzuki but was stymied by a resistant Japanese board of directors. Volkswagen sold its shares back to Suzuki in 2015. Maruti Suzuki of India is 74 per cent owned by Suzuki and has three factories and a 50 per cent market share in India. FCA boss Sergio Marchionne said Suzuki was one company he would consider as a business partner.

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ALLIANCES: VOLKSWAGEN, FIAT, GENERAL MOTORS, MARUTI

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TESLAFounded in 2003 and produced its first car, the Lotus Elise-based Tesla Roadster, in 2008. It was the first electric vehicle to travel more than 320km on a single charge and the first to use lithium-ion batteries. It launched the Tesla S sedan in 2009. Daimler bought less than 10 per cent in 2009, selling almost half of that share (40 per cent) to Aabar Investments of Abu Dhabi to end with 4 per cent. Toyota bought a minor stake in 2010 and the two collaborated on the Toyota RAV4 EV. Tesla also sold batteries to Toyota. Toyota sold most of its shares in 2014. Daimler sold its entire 4 per cent stake in 2014 but buys the motor, batteries, charger, and supporting EV systems for its B-Class EV from Tesla. It also makes the EV drivetrain for Daimler subsidiaries, Smart’s ForTwo and for Freightliner’s inner-city van. Tesla also builds a network of fast chargers between cities (US, Australia, Europe, Asia) and storage batteries for homes and offices.

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ALLIANCES: DAIMLER, TOYOTA, LOTUS, SMART

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ABARTHStarted in 1949 by Carlo Abarth with cars bought from the liquidated Cisitalia company. It raced and modified cars for competition and made performance parts and accessories for European cars, though mainly Fiat. Fiat bought Abarth in 1971, selling the motorsports division and created a new competition arm that prepared the Fiat 124 coupe for rallying. It also developed the Lancia Beta Montecarlo for Group 5 (winning the 1980 and 1981 World Sportscar Championships) and the Lancia 037 Group B that won the 1983 World Manufacturers’ Championship. The Abarth name was shelved in 1981 and didn’t reappear as an independent model designation until 2007 with the Abarth Grande Punto. It is now part of Fiat Chrysler Automobiles.


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Inner-city living boost to car-sharing businesses

Developers see shared vehicles as a way to attract buyers and reduce costs By NEIL DOWLING

n CAR-SHARING as a concept is gaining ground in Australia as property developers are increasingly adopting the concept for their inner-city investments, GoAutoNews Premium has been told.

Developers are saying they are embracing car sharing to entice tenants or buyers to their buildings and to reduce

costly car park bays.At the same time, inner-city

councils are applauding the concept as a way of reducing traffic congestion in inner-city streets.

The simple concept of sharing a car is now evolving into a competitive business model that alters traditional car ownership rules and, in time, will have significant implications for the sales

structure of car manufacturers and dealers.

Car-sharing – not to be confused with car-pooling that involves a roster of friends alternating their cars for commuting purposes – can potentially save users a lot of money. It is becoming an increasingly popular alternative to owning your own car or using Uber or taxis or public transport.

Many New South Wales and Victorian councils, particularly those in inner-city areas, are now mandating car-sharing bays in all new developments as a means of reducing central business district (CBD) traffic.

Last week, the City of Sydney reported that 10 per cent of all city drivers – or 30,000 residents and businesses – use car-sharing.

Sydney has 670 car-share bays, equivalent to 1.6 per cent of the city’s parking spaces.

Lord mayor Clover Moore has announced a change in the city’s car-share policy, ensuring car bays for organisations are retained through to 2020 and prohibiting the sale or transfer of the car bays to new operators.

Continued next page





Continued from previous page“This success shows car

sharing is an incredibly efficient use of parking spaces for residents and businesses,” Ms Moore said.

“These changes will ensure car-sharing spaces are allocated where they’re needed, well monitored and

managed, and that the sector remains competitive.”

A spokesperson for the City of Sydney said new residential and commercial developers were encouraged to provide for car-sharing spaces.

“While the city does not mandate that on-site car-share parking be provided,

we expect car-sharing spaces will be included in any large development that includes general parking,” the spokesperson said.

For developers, it also means a reduction in the price of the building as one CBD underground parking bay is estimated to cost

$70,000 to build.Though never part of the

original concept, the cars being shared are increasingly low-emission vehicles and are moving up the price bracket into prestige models that reflect the status of the driver and the host organisation.

Australia’s biggest car-share company GoGet has 2100 cars on the roads, 80,000 users and has made large strides into linking with corporations rather than individuals.

It collaborated with developers Frasers Property and Sekisui House to supply up to 60 cars for the $2 billion Central Park Sydney residential and office complex. Residents have access to cars and this negates the need for traditional one-for-one ratio of carbays to apartments.

About 10 other Sydney residential developments – including Southbank and Belvedere Apartments in North Sydney and Trio Apartments in Camperdown – use car-sharing.

Frasers Property project director Mick Caddey said his company was a longtime supporter of car-sharing after introducing GoGet to the Trio building development

in 2009. Though car-sharing is a

growing phenomenon, it doesn’t necessarily need to be operated by a specialist company.

Melbourne developer Michael Yates provided a BMW electric car as a share vehicle for residents of his 38-apartment development in South Yarra.

The developer had previously included a share car in two previous apartment buildings, also in South Yarra.

BMW Australia general manager of marketing Stuart Jaffray said that a year ago, there were no inquiries about car-sharing and about BMW’s participation, but that has changed.

“Now, the phone calls are regular. It’s getting busy,” he said.

BMW Australia is focusing on property developers in Sydney and Melbourne but has corporations on the list of potential customers.

It has supplied a BMW i3 electric car to a Melbourne apartment development and more are soon expected to follow.

Continued next page

Christopher Vanneste





Continued from previous page“We are only about to start

but the initial reaction is really, really positive so we are quite keen to develop it,” said BMW Group Australia CEO Marc Werner.

Mr Jaffary said that inquiries from businesses include a high profile Melbourne restaurant that is interested in putting in charging stations.

“It sees, from a sustainability point of view, that it’s a new perspective for them,” he said.

“Offering solutions for their customers – such as participating in the whole zero-emission vehicle concept – is seen as a great add on to their business so they are now talking about what they can do.

“It’s no different from conversations going on now with property developers who see that essentially, this is the way the world is going and they want to be ahead of the curve.”

The attraction of not owning a car has also extended into government fleets.

GoGet’s Chris Vanneste said the NSW government recently completed trials on car sharing vehicles that aim to minimise its own fleet.

“We’re starting the roll-out now with most government departments,” he said.

“It gives the government access to our vehicles when needed, particularly in peak periods, which extend from

the city to the suburbs. On the other side, our cars would be hardly used over Christmas.

“If you drive up to 10,000km a year, car-sharing makes sense.”

Mr Vanneste said 30 per cent of GoGet’s business was for government and businesses but that the percentage was increasing.

“Our growth is limited by the car spaces available to meet demand,” he said.

“Growth is faster than the

private or consumer market because businesses have better access to existing car parking.”

Australia’s biggest car-sharing complex is Central Park in Sydney where there are 50 GoGet cars in building carparks and a further 10 available on the street.

“The other projects are smaller but there’s a growing number in development and a large interest by future project developers.”





Lamborghini bullish on Australian salesNew factory, SUV will unblock waiting list from 2018

By NEIL DOWLINGnWHILE prestigious supercar manufacturer Lamborghini is selling every car it can make, Australian dealers are focusing on high standards of customer service as they wait for increased production.

Automobili Lamborghini Oceania manager Eginardo Bertoli said local dealership standards were high and the company was prepared to let dealers go if they were not able to meet them.

Speaking at the launch of the Huracan LP580-2, Lamborghini’s latest and cheapest supercar at $378,900

before on-road costs, Mr Bertoli told GoAutoNews Premium: “Our customers have to receive the best possible experience from the dealer.

“Customer needs come first,” he said. “They have to receive the best possible experience from the dealer and if a dealer can’t provide that – and after we have helped and advised them to lift the standards – then we have to let them go.”

Mr Bertoli said all Australian outlets are stand-alone dealers “in the sense that they operate the front room (showroom) strictly for Lamborghini.

“We understand that our dealers can’t just sell Lamborghini. All four dealers in Australia are multi-franchises,” he said.

Mr Bertoli said dealer training was vital to Lamborghini’s success and the focus is paying off.

He said Australia had become an unexpected gem in Lamborghini’s global growth and was now responsible for nine per cent of Lamborghini’s Asia-Pacific region and tipped this year to expand further.

Lamborghini Australia sold 84 supercars in 2015,

compared with Ferrari, Aston Martin and McLaren who managed to shift 167, 130 and 36 cars respectively. In 2016, Lamborghini Australia is forecast to reach 100 sales by year’s end.

Lamborghini Asia Pacific general manager Andrea Baldi said the Asia Pacific region represented 13 per cent of Lamborghini’s global sales in 2007 and grew to 28 per cent in 2015.

“Australia and Japan were the fastest-growing countries for us in 2015 and we expect that to continue in 2016,” he said.

The Asia Pacific region has 39 Lamborghini dealers in total, four of which are in Australia.

Mr Bertoni, based in Japan and responsible for Australian business, said there were no plans to increase dealer numbers despite growing sales.

“We had planned that the Aventador would double the sales of its predecessor, the Murcielago. But it exceeded even that,” he said.

“The Huracan has sales growth up 69 per cent on its previous model, the Gallardo.”

Continued next page





Continued from previous pageLamborghini hopes that

2016 sales in Australia will exceed their number of 100 but says it is tempered by supply.

There is now a 10 month wait for the Huracan and a much longer wait for the $761,500-plus flagship Aventador.

Demand will see Lamborghini almost double the size of its factory near Modena in Italy’s north, from 80,000 to 150,000 square metres, expected to be completed by 2018.

“This increase in factory size and the introduction of our new SUV will double sales around the world,” Mr Baldi said.

“This will be achieved by our increase in investment in research and development.”

“We had a €870 million ($A1.260 billion) revenue in 2015. We have allocated 20 per cent of revenue a year to R&D, but for the next two years we will increase that to 30 per cent.”

The R&D, which will be the equivalent of $A380 million annually, is aimed at bringing the Urus SUV to production in 2018 and continuing development in powertrains.

Mr Baldi said R&D would include looking at the “best options” for future powerplants, hinting it could include hybrid systems.

“Hybrids could be a way forward but we have to see the future trends,” he said.

“We are a small-volume manufacturer and we have to

balance what we can supply with what the customer wants, while retaining our exclusivity.”

Mr Baldi ruled out any change to Lamborghini’s current practice of building only normally aspirated (not turbocharged or supercharged) engines and questioned that practice by rivals.

“Maybe it’s an attempt to put a bigger number on the car,” he said of the power outputs being promoted by competitors.

“We think it could be more to do with marketing. You have to think about how much horsepower you can put to the ground and what is the best balance for the car. It’s more than just about speed.”

Lamborghini, Ferrari, Aston Martin, McLaren sales 2015

84LAMBORGHINI

167FERRARI

130ASTON MARTIN

36MCLAREN

100FORECAST SALES 2016

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MAY 06, 2016 TE INE E O OTONE Australian car industry from...

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