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AUSTRALIA’S NO.1 AUTOMOTIVE INDUSTRY JOURNAL EDITION 1028 – JUL 1, 2020

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Road aheadHyundai forecasts sales recovery with 18 new models over next18 months, but industry braces for 20 per cent decline this year

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By BYRON MATHIOUDAKIS

HYUNDAI is counting on 18 all-new or facelifted models to be launched in Australia over the next 18 months to help trade its way to recovery in the aftermath of the ongoing COVID-19 pandemic and the current economic recession.

While cautious about detailing the company’s targeted sales and financial turnaround after suffering a 34 per cent sales downturn in the first five months of this year, Hyundai Motor Company Australia (HMCA) chief operating officer John Kett is confident that a dynamic and proactive approach with an appealing, innovative and relevant model line-up will assist in rebuilding momentum.

He also said HMCA was currently anticipating the overall industry would suffer a sales decline of about 20 per cent this calendar year, taking new-vehicle registrations down to about 850,000.

“When we add up all of our products, and think about how they all succeeded, then we’ll be able to really hold our scale and really hold

our scale strongly next year,” Mr Kett told GoAuto at an HMCA future-model briefing in Sydney last week.

“When we talk about the scale of our volume for next year, it will still be largely based around the i30, Kona and Tucson, and to a lesser degree the Santa Fe and Palisade (flagship SUV due late 2020).”

Three of the key volume sellers – the i30 small car, Kona small SUV and Santa Fe medium/large SUV – will each receive a significant facelift and upgrades by the end of this year or by mid-2021 for Kona, while the Tucson mid-size SUV will be completely redesigned and re-engineered from the ground up in the first quarter of next year as it attempts to regain ground lost to the runaway-success Toyota RAV4.

Furthermore, much bolder replacements for the Elantra small sedan and Sonata mid-size passenger car will surface in the final quarter of this year, with the former switching to the i30 nameplate to more closely align it with Hyundai’s best-seller.

Continued next pageHyundai 45 concept

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Continued from previous page Rounding out the rollcall of 18

newcomers by the end of 2021 will be an additional eco model to sit above the electrified Ioniq range, potentially based on the retro-themed all-electric Hyundai 45 compact crossover concept that debuted at the Frankfurt motor show last September.

Overseas executives have confirmed a production version of the 45 is coming, followed by an electric sportscar based on the Prophecy shown earlier this year.

A host of mostly unconfirmed performance models wearing the N-Line or hardcore N moniker are also anticipated, including the all-new i20 N hot hatch just announced for launch early next year, as well as expected racier grades for Kona, Tucson and even Santa Fe, according to overseas reports.

Mr Kett said that with the new-model deluge kicking off later this

year, HMCA entered 2020 preparing for only a modest sales decline – due in part to the loss of volume with the demise of the robust Accent

light car, which ended up dominating its segment despite being older than most rivals like the Mazda2. However, that was before COVID-19 struck.

“Initially we thought the market would be down 10

per cent year-on-year as we went into this year,” he said.

“We were somewhat hopeful that, based on the sheer macroeconomic indicators that were suggested to come into the market say in the second half of the year, that we might see some of that decline disappear, meaning we would have exited 2020 not quite 10 per cent down, and that would have been a positive time for us because we were always launching our portfolio towards the end of the year.”

After the horror first half to the year that had pushed the overall industry down 24 per cent to the end

of May, Mr Kett believes the market will recover slightly but still finish the calendar year at about 20 per cent down over 2019, from just under 1,063,000 units to about 850,000.

“We’ve got to the point now, where we understand COVID-19 the best we can, that any year-on-

year or accumulated year-on-year difference that is greater than 10 per cent we probably attribute to COVID-19 and everything else to the sheer structural challenges that the industry was facing (prior to that),” he said.

“But we are doing it month-by-

month. We just had a conversation yesterday, just reassessing where the industry is heading, what segments it is heading in, to understand the circumstances we are operating in.”

FULL STORY: CLICK HEREPalisade locked in – next page

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By BYRON MATHIOUDAKIS

HYUNDAI has confirmed that the Palisade large SUV will launch in Australia by the end of this year.

To be positioned above the smaller Santa Fe that also resides in this segment – and which is in line for a substantial facelift at about the same time – the Palisade will be offered in both seven- and eight-seat configurations, making it a unique proposition against similarly American-influenced large SUVs such as the Toyota Kluger, Nissan Pathfinder and Mazda CX-9.

Speaking to GoAuto at the LX2-series Palisade announcement in Sydney last week, Hyundai Motor Company Australia (HMCA) chief operating officer John Kett revealed that getting the Palisade over the line for Australia was no mean feat,

as we will be the only right-hand-drive market in the world offering any significant volume potential for the series.

“It’s a real credit to the local team here to convince an organisation to convert a car that was not going to be right-hand drive,” he said.

“The fact that we’ve been able to have the corporation to develop right-hand drive for a largely small market as ours is a strong indication of faith in our portfolio and the marketplace.”

Pricing details are still to be revealed, but expect a 10 to 15 per cent jump over the Santa Fe, meaning the base model will most likely start from about $50,000 plus on-road costs, stretching to around $75,000 for the top-line version.

Two engines have been confirmed for Australia, including a variation of

the 217kW/355Nm 3.8-litre petrol V6 similar to that offered in the original Genesis luxury sedan, driving the front wheels via an eight-speed torque-converter automatic transmission.

The other is Hyundai’s venerable 2.2-litre four-cylinder turbo-diesel, which in the Santa Fe produces

147kW of power and 440Nm of torque and similarly combines with an eight-speed automatic.

As with the Santa Fe’s recently revealed 3.5-litre V6 model, right-hand-drive under-bonnet packaging issues concerning the power steering, engine manifold and AWD

systems mean that only the diesel will offer all-wheel drive.

Dimensionally, the Palisade sits firmly between the best-selling Kluger and CX-9.

FULL STORY: CLICK HEREUte agenda – next page

Palisade locked in

Hyundai confirms flagship large SUV with eight-seat availability will launch in Australia later this year

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By BYRON MATHIOUDAKIS

HYUNDAI has revealed that sales performance of the forthcoming Palisade flagship SUV in Australia might have a bearing on other future models such as the long-anticipated Santa Cruz pick-up.

Hyundai Motor Company Australia (HMCA) will launch the Palisade by the end of this year after successfully winning the case for right-hand-drive production of the large SUV, and has been working for years on bringing a suitable utility to Australia to compete in the all-important pick-up segment.

While GoAuto understands that a ute with a ladder-frame chassis that lines up directly against the Toyota HiLux and Ford Ranger is still on the agenda for release by about 2023, a production version of the more recreational monocoque-chassis Santa Cruz concept – believed to be based on the Santa Fe and the closely related Palisade – is also still a chance for this market.

Speaking to GoAuto at a future-model briefing in Sydney last week, HMCA chief operating officer John Kett steadfastly refused to discuss the company’s pick-up plans, but conceded that convincing its South Korean parent to invest in other niche, and often American-targeted, models for our market would be easier if Palisade became a sales hit here.

“With (Palisade) volumes, we’re not about to take the market by storm,

so we’re not relying on it to drive the scale of our business,” Mr Kett said. “But I think it will play an incredible role for us just to extend the price-point offering with Hyundai with what is a relatively unique product for us. We’re quite excited about it.

“And if we can make that work, then it gives us a lot more confidence around other product programs that we are in the pitching for that we haven’t revealed … that would require some conversion and confidence

around that conversion for us, and the threshold for business cases for products for HMCA don’t seem as onerous as some other brands.

“So as long as we can generate some volume and demonstrate some value, there seems to be a real appetite to make sure we can maintain a fair share in this country.

“We’re the beneficiary of an amazing and innovative parent, so when they do a facelift or introduce a new car, there are really credible,

visible features or changes to that car, and this (Palisade) will be one of them.

“So we’re confident in the Palisade, it doesn’t have to do all the heavy lifting related to volume, but if it does do a little bit better than what we planned for, then it’s going to underwrite the probability and cashflow for other new product programs that we bring into the business.”

FULL STORY: CLICK HEREAll set for i20 N – next page

Ute agenda

Plenty riding on Palisade’s success in Australia asHMCA continues to push case for pick-up here

Santa Cruz concept

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By BYRON MATHIOUDAKIS

AS WIDELY anticipated, Hyundai will take on the likes of the Ford Fiesta ST, Volkswagen Polo GTI, Renault Clio RS and Toyota GR Yaris in Australia for the first time ever early next year with the arrival of the all-new i20 N hot hatch.

To be built in Turkey and based on Hyundai’s third-generation supermini released overseas earlier this year, the still-to-be-revealed series-production version of the i20 N will be the first light hatch from the South Korean car-maker to undergo the N sub-brand performance overhaul.

However, while it also marks the return of the one-time-popular i20 nameplate in Australia, non-N variants will not be part of the

program for this market, at least in the foreseeable future.

It will also only be available with a five-door hatch body style.

“We are excited to confirm for the first time that the all-new i20 N will be available in Australia,” Hyundai Motor Company Australia product planning manager Jonathan Lam said at a media event in Sydney last week.

The i20 N will be positioned below the larger i30 N range that starts from $41,400 plus on-road costs, and although pricing is still to be finalised, expect the hottest Hyundai supermini to basically shadow the Fiesta ST’s $32,290 (plus on-roads) marker.

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By BYRON MATHIOUDAKIS

HYUNDAI Motor Company Australia (HMCA) has no plans to increase its factory new-car warranty from five to seven years on a permanent basis to match other brands such as Kia, despite continuously reviewing the case for extended coverage.

Speaking to GoAuto in Sydney last week, HMCA chief operating officer John Kett said that although the company occasionally uses a seven-year warranty on select models for promotional purposes, only a small number of consumers will forsake buying a Hyundai purely on the basis of its standard five-year warranty.

“We’ve continued a (seven-year) offer on two passenger cars,” he said. “One of them is the Elantra in runout in terms of giving it something unique in the marketplace and the other is the i30 … (and that’s because) it’s so well price-positioned in the marketplace,

throwing any more money at it doesn’t sell any more cars so a seven-year warranty for it was good.

“(The question is) with the funds that we’ve got left, the products we need to launch and the role that warranty can play in the conversion process versus the consideration process, where do we want to spend our money?

“So, we’ve decided at this point of time that we’re going to go with increasing our marketing, the focus around our awareness generation, bringing greater visibility to our product and the contenting of our product, and seeing if there are any objections in the conversion process that we can overcome them upfront.

“We rarely lose on warranty-related issues unless somebody is cross-shopping us with Kia. We do lose there, but it’s not a big issue.”

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By CALLUM HUNTER

AUDI has torn the covers off its updated Q5 mid-size SUV which carries a new look, upgraded technology and more power, and is due to launch in Australia in the first half of next year.

Brandishing redesigned bumpers front and rear, the facelifted Q5 actually measures 19mm longer than before at 4682mm – still riding on a 2820mm wheelbase – and sports an altogether more aggressive look courtesy of a reworked grille, bigger air intakes and revised LED running lights.

Q5 exterior designer Ash Cleaver was on hand at the digital unveiling staged under embargo ahead of this week’s release to explain some of the new styling changes, headed up by the revised ‘single frame’ grille.

“What we’ve done here on this car is we’ve detached it now from the bonnet, moved it down and made it wider, but we’ve also changed it now so it has the same octagonal shape as the other Q cars,” he said.

Mr Cleaver added the new Q5 drew inspiration from the RS line of vehicles which, combined with

the vertical intakes and tweaked headlight arrangement, help to give the SUV a more focused and sportier demeanour.

Redesigned sills give the Q5 an extra element of ground clearance when viewed from the side, despite Audi admitting that very few Q5 owners take their vehicle meaningfully off-road.

At the rear, there is a new diffuser and trim piece linking the revised tail-light arrangement.

Two optional exterior packs will be available for those wanting an extra layer of class or sportiness; the ‘advanced line’ adds chrome vertical ribs in the grille and silver under-ride guards beneath the front and rear bumpers, while the S line adds a black honeycomb mesh to the grille and a chrome strip framing the rear diffuser.

Apart from styling, the biggest update to the Q5 relates to its infotainment system which now

utilises the latest version of Audi’s Modular Infotainment Platform (MIB 3), a system the brand says is 10 times more powerful than the MIB 2 platform.

The system itself can be accessed via a new 10.1-inch MMI touchscreen which forgoes the previous rotary dial mounted on the centre console with a new storage cubby hole now in its place.

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NISSAN has confirmed that its casting plant in Melbourne’s south-east is still operational despite the ongoing economic effects of the COVID-19 pandemic, however the facility is currently on a significantly reduced schedule to reflect global demand.

The Dandenong South factory has been in operation for nearly 40 years and produces a number of components for Nissan and its global portfolio of vehicles.

It produces niche parts including inverter covers for the Leaf EV, transmission cases for the Navara pick-up and water jackets for the hybrid Note hatch not sold here, utilising machines and the well-

trained local workforce to create complex components for the Japanese manufacturer.

With the sharp downturn in global vehicle production and sales from

the impacts of COVID-19, there were questions as to whether the plant would remain open for business.

However, Nissan Casting Australia Plant managing director Peter Jones assured GoAuto the facility is still

running – albeit at a reduced capacity.“In response to the continuing

COVID-19 outbreak and decreased global demand in the automotive market, we are operating on a reduced schedule at Nissan Casting Australia Plant during June,” he said.

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By NEIL DOWLING

AUSTRALIA could have a range of specialist electric vehicles in production within a decade under a concept by the nation’s leading automotive engineering society to form a collaboration of local engineers and hi-tech component manufacturers.

The Society of Automotive Engineers – Australasia (SAE-A), the peak Asia-Pacific body for mobility engineers, said the idea follows the theme of the 1998 and 2000 aXcess concept cars that were built to showcase the capability of Australia’s automotive designers, engineers and component manufacturers to global automotive companies.

SAE-A spokesman Greg Shoemark said the aXcess cars – first a four-door with an Orbital two-

stroke engine and the second a low-emission hybrid using an onboard generator – generated considerable interest and an estimated $1.25 billion dollars in export sales for

local manufacturers.Last week, the SAE-A

released a fresh blueprint based around a modular platform, electrified powertrain, advanced composite components and autonomous driving systems

– and represented by a design sketch showing a “21st century police car”.

“The response to our publicly showing the concept EV police car that could be built here has been huge,” Mr Shoemark said.

“We knew there’s enough car industry capability left after the closure of Toyota, Holden and Ford to make a project like this viable.

“The next step is to begin a feasibility study.”

Mr Shoemark said half of the 130 companies that contributed to the aXcess projects were still in business and hoped they would become involved.

“We now want to recruit members to help foster the project,” he said.

SAE-A chairman and CEO Adrian Feeney said the proposal is for the manufacture of specialist vehicles with different bodyshells to fulfil tasks

in the utility and service industries. The SAE-A proposal’s first

company on board is transportation design firm Delineate which has clients including Tesla, Google, Honda, Ford and Nissan.

Mr Feeney said Delineate came up with “a blue-sky imagining of what a 21st century police car might look like as a first step towards a commercially viable real-world vehicle”.

The police car could be an EV with autonomous functions and made in a modular design from composite materials.

“COVID-19 has shown the importance of car manufacturing, and we propose to start with a car that no other country could build,”

Mr Feeney said.“We would design it at the cutting

edge of near-horizon technology, and we would build it in the medium volumes which Australia has always excelled in.

“So what would it look like? It would be electric, substantially autonomous, built of advanced composites and made in a total volume of 50,000 to 100,000 per year.

“It would be a modular family of specialist vehicles for world markets – imagine a police car, an ambulance, perhaps even a light military vehicle all off the same platform.”

FULL STORY: CLICK HEREHolden engineers exit – page 15

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By TERRY MARTIN

AUSTRALIA’S move toward electrified vehicles has failed to make any significant impact on the average carbon dioxide emissions from new light vehicles sold across the nation, with the latest figures from the National Transport Commission (NTC) released last week showing a meagre 0.2 per cent improvement was achieved last year.

Covering all new passenger cars, SUVs and light-commercial vehicles in the marketplace, the national CO2 emissions intensity performance of 180.5 grams per kilometre is the lowest rate of reduction recorded since data collection started in 2002.

It follows an underwhelming 0.4 per cent improvement in 2018 (to 180.9g/km), and a 0.3 per cent reduction in 2017 (to 181.7g/km),

and again reinforces the painfully slow rate of change in Australia – now at less than two per cent annually for five years in a row, and marking only a 3.7g/km decline in total from 2015 to 2019.

The stagnation reflects Australian consumers’ long-held preference for larger vehicles – particularly SUVs and utes in today’s market – and automatic transmissions, as well as the absence of mandatory CO2 targets and other initiatives that successive governments have either avoided or had defeated before hitting the statute books.

The irony is that the Australian car industry has long been prepared to accept mandatory CO2 targets and other regulatory reforms such as the federal carbon emissions trading scheme proposed more than a decade ago.

As it does every year, the NTC has emphasised that if consumers who purchased a new vehicle last year chose the one with best-in-class emissions, the results would be vastly different – in last year’s case, the CO2 average would have plummeted 63 per cent to just 67g/km.

The trouble is, ‘green’ vehicles – defined in this case as emitting no more than 120g/km – made up only 5.7 per cent of total light vehicle sales in 2019 (57,782 units), up 4.1 per

cent on the previous year but making no serious dent in the overall result.

Full-electric and plug-in hybrid electric vehicle sales totalled 5875 units in 2019, a rise of 149.1 per cent on the 2357 EVs sold the previous year but no more than a fraction (0.57 per cent by our calculations using FCAI and NTC data) of the 1,027,848 officially registered light vehicles across the entire market.

The NTC’s latest report shows that despite regular powertrain updates across the market, CO2 emissions intensity for light-commercial vehicles actually increased last year by 0.7 per cent, with the ever-popular 4x4 pick-ups/cab-chassis the worst offenders with an increase

of 0.9 per cent to 226g/km.The SUV category overall dropped

1.1 per cent to 179g/km, although small SUVs stood out as the only segment not to record an improvement – up 0.5 per cent to 157g/km.

Among other key results, the average emissions intensity from government fleets fell 2.0 per cent last year to 191g/km – still a high level of intensity owing to the large numbers of LCVs purchased, but reflecting policies to purchase electrified vehicles where possible – while the CO2 average for business fleet purchases rose 0.2 per cent to 186g/km.

FULL STORY: CLICK HEREEV insights – page 13

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By BYRON MATHIOUDAKIS

MERCEDES-BENZ has pushed its SUV count out to eight with the official launch of the all-new GLB series in Australia – a medium-sized seven-seater which, as the name suggests, slots in between the GLA compact crossover and the best-selling, five-seat-only GLC mid-sizer.

But with so many models in the German premium brand’s high-rider stable from which buyers can now choose, how highly does the GLB rate and what are its chances of success?

Kicking off from $59,900 plus on-road costs for the base 200 variant, the inaugural GLB adopts the transverse-engined MFA2 front-wheel-drive or ‘4Matic’ all-wheel-drive architecture first seen in the

current A-Class hatch in 2018.However, with squared-off

styling reminiscent of the full-sized seven-seat GLS and a dedicated off-road engineering package on the expected volume-selling GLB250 4Matic (from $73,900) that brings to mind the hardcore G-Class Geländewagen, the GLB amalgamates several key elements of its established SUV siblings.

These are central to the newcomer’s appeal as a sort of ‘anti-GLA’ offering, with family-friendly functionality rather than sleek coupe/hatch styling behind its packaging that gives the GLB wagon – with its tall stance (1659mm overall height) and high ground clearance (213mm) – a distinct point of difference.

Plenty of new-to-the-Benz-brand buyers are anticipated as a result.

The company cites the British-built Land Rover Discovery Sport as an obvious rival, although the cheaper Volkswagen Tiguan Allspace and Skoda Kodiaq also stand as competitors.

The GLB’s 2829mm wheelbase is some 50mm shy of the GLC’s, but 100mm longer than that of the closely related B-Class MPV, allowing Mercedes’ designers the

freedom to fit extra-long rear doors that open to nearly 90 degrees to facilitate access to and from the pair of seats in the third row.

Aiding this is a 70/30 split-fold centre-row bench seat that can slide fore/aft up to 140mm and includes an individual seat-folding arrangement.

With deep windows, a tall ceiling and lofty seating, the

feeling inside is airy, spacious and versatile – even more so than in the expansive B-Class.

Front and second-row headroom and legroom levels are surprisingly generous, with only the GLB’s 1834mm girth betraying its small-car platform origins, meaning a third adult occupant in row two makes for a bit of a squeeze.

Continued next page

GLB hits the road

All-new Mercedes mid-size SUV tempts families with chunky looks, swish cabin and seven seats

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Continued from previous page

Seats six and seven are really only suitable for sub-170cm-tall travellers, although it is the shape of the jutting headrests rather than any roofline shortfall that dictates this restrictiveness as pushing the middle-row seats forward can accommodate long legs in the rearmost positions.

Isofix child-seat latches, cupholders and two USB outlets are included, but no face-level air vents.

Storing the third-row seats is a simple single-action procedure, boosting luggage space from barely 150 litres to 560L, or 1800L with the centre bench lowered for a flat load surface.

This concludes the SUV bit of the GLB. From the front row forwards, it’s almost pure A-Class, from the dazzling 10.25-inch pair of screens forming a rectangular digitised instrumentation/multimedia system to the firm but supportive seats set

amongst a stylised cockpit of slick, textured surfaces.

The emphasis is on quality and luxury – at least, it is in the mid-spec GLB250 4Matic we tested.

Metallic-like turbine-fan vents contrast elegantly with beautifully tactile switchgear, piano-black finishes and faux-leather trim, while an excellent driving position offering pleasing all-round vision, lots of storage and ample ventilation are further cabin highlights.

That broad touchscreen offers greater visual and functionality configuration, allowing for personalisation ranging from subtle to gross. Vibrant purple ambient lighting, anyone?

With the fiddly steering-wheel spoke controls it all can seem a little daunting, but familiarisation can lead to some neat discoveries, such as the lovely understated instrumentation.

As well as seven seats, both GLB

variants on sale now include climate-control air-conditioning, ambient interior lighting, keyless entry/start, Apple CarPlay/Android Auto connectivity, wireless smartphone charging, embedded satellite navigation, rain-sensing windscreen wipers, an electric tailgate and 19-inch alloy wheels.

These are supported by advanced

driver-assist systems including automatic parking, auto high beam, blind-spot monitoring, traffic-sign assist, active lane-keep assist, and active brake assist with semi-autonomous braking. Nine airbags are also fitted.

That said, adaptive cruise control costs extra, even in the GLB250 with its adaptive dampers, panoramic

sunroof, electric/heated front seats with driver’s side memory and the aforementioned Off-Road pack that alters the traction systems, includes hill-descent control and even brings close-range terrain camera imaging with night-time vision for safer low-speed manoeuvrability.

FULL STORY: CLICK HERE

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EDITION 1028 - JUL 1, 2020

PAGE 13

GoAutoNewsMarket Insight

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By TERRY MARTIN

THE most accurate picture of the state of the electric vehicle market in Australia emerged last week with official figures showing that 5875 full-electric and plug-in hybrid electric vehicles were sold in 2019, with half of these – 2950 units – representing Tesla EVs.

The figures were contained in the annual report on CO2 emissions from new light vehicles compiled by the National Transport Commission (NTC), which combines data supplied by the Federal Chamber of Automotive Industries (FCAI) with new vehicle registrations from individual states and territories, the latter identifying Tesla sales which are not recorded under the FCAI’s VFACTS reporting system.

Tesla’s 2950 sales last year represented a 194 per cent increase on the 1005 units delivered to customers in 2018, and the rising tide reflects long-awaited shipments of the Tesla Model 3 mid-size sedan.

As GoAuto reported last year, 2414 examples of the Model 3 were identified as having berthed in Australia last August, more

than two years after production started in the US.

The subsequent flood of registrations as customers in Australia finally took delivery of Tesla’s smallest and most affordable model sent the Model 3 straight to the top of the charts as the biggest-selling electric car in the country.

In comparison, the total number of full-electric vehicle sales last year from all other makes and models combined, as recorded by the FCAI, was 1523 – around 1400 fewer than Tesla managed across its full range but nonetheless a huge 706 per cent upswing from the 189 sold the previous year.

Moreover, 1402 PHEV sales were also made, a rise of 21 per cent (239 units).

Combined EV/PHEV sales of 2925 units across all brands (ex-Tesla) therefore represented a 116 per cent increase on 2018, while the total 5875 market with Tesla sales included marked a 149 per cent increase overall.

It is a positive result from every angle, but considering 1,027,848 light vehicles were sold

in Australia last year – covering passenger cars, SUVs and light-commercial vehicles (including the Tesla figures) – electric vehicles still only accounted for a tiny 0.57 per cent of the market.

In terms of cumulative sales, the

NTC also used Australian Bureau of Statistics (ABS) data to calculate that approximately 14,500 EVs and PHEVs were in the Australian vehicle fleet at the end of last year, quietly running around on our roads that as at January 31, 2019, were

carrying 17.8 million light vehicles.That sees electric vehicles

equating to 0.08 per cent of the national car parc, not including heavy commercial vehicles.

FULL STORY: CLICK HERE

Tesla snares 2950 sales last year from totalAustralian EV/PHEV market of 5875 units

EV insights

GoAuto Market Insight brought to you by Op2ma 3500

3000

2500

2000

1500

1000

500

02016 2017 2018 2019

Tesla All others

Tesla versus the rest – EV/PHEV sales in Australia over the past four years

Source: NTC

EDITION 1028 - JUL 1, 2020

PAGE 14

GoAutoNewsGreen

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By CALLUM HUNTER

JAGUAR has updated its trailblazing all-electric I-Pace luxury SUV for the 2021 model year, which brings faster charging times, new infotainment technology and a host of other improvements.

Local pricing was also released last week in conjunction with the new model’s overseas unveiling ahead of its launch here in the third quarter, with all grades incurring an increase.

At the entry level, the S variant is now $4760 higher at $128,860 plus on-road costs, while the mid-spec SE has risen $3060 to $138,460.

The biggest price increase belongs to the flagship HSE which now retails for $152,060 plus on-roads, up $6060.

An extensive tech upgrade for the MY21 I-Pace helps offset the higher

pricing, headlined by the move from a 7kW on-board charger to a new 11kW unit that enables owners with access to

a three-phase electricity supply to slash charging times.

Jaguar claims that one hour of charging connected to an 11kW wallbox will provide drivers with 52km of range, while a full charge from battery depletion now takes 8.6 hours – down from the almost 13

hours it takes with a 7kW wallbox.Using a 100kW quick-charger,

up to 127km can be added to the range in 15 minutes of charging, Jaguar says, while a 50kW unit will reportedly add up to 63km.

The 90kWh battery itself remains unchanged, as does the effective driving range of 470km and total system output of 294kW/696Nm from two permanent magnet synchronous electric motors.

These are mounted on opposing axles, providing variable all-wheel drive via a single-speed

automatic transmission.Inside, there is a wealth of new

features and technology upgrades to match the enhanced charging capabilities, including Jaguar Land Rover’s new Pivi Pro infotainment system, making the I-Pace the first Jaguar to be fitted with the system.

“The Pivi Pro infotainment system makes it easy to use public charging networks. It can also tell you where charging stations are,” said I-Pace vehicle engineering manager Stephen Boulter.

“We know that most customers

charge their I-Pace at home but we wanted to make charging on the go just as simple – and our new infotainment system makes that possible.”

Other new standard features include a 360-degree camera, ClearSight rearview mirror and updated four-zone climate-control system with ‘cabin air ionisation’ (air filtering).

Wireless charging for two devices is now possible – as an optional extra – under the floating centre console, as well as signal boosting.

FULL STORY: CLICK HERE

Faster charging times and new infotainment techheadline MY21 update for Jaguar’s electric SUV

I-Pace overhaul

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EDITION 1028 - JUL 1, 2020

PAGE 15

GoAutoNewsPersonnel

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By NEIL DOWLING

TOYOTA Australia president Matt Callachor has been elected as the new chair of the Federal Chamber of Automotive Industries (FCAI), replacing Mercedes-Benz Australia/Pacific CEO and managing director Horst von Sanden who had held the position for the past two years.

Mr Callachor moves into the top seat after most recently serving as one of the board’s two deputy chairpersons.

It is his second time as chair after temporarily filling the position for 12 months in 2018 when he replaced Dave Buttner at the helm of the market-leading Japanese brand in Australia.

Newly elected deputy chairpersons at the FCAI are Ford Australia president and CEO Kay Hart and Mazda Australia managing director Vinesh Bhindi.

Mr Bhindi was previously the FCAI’s treasurer – a role that is now the responsibility of Honda Australia director Stephen Collins.

Audi Australia managing director Paul Sansom joins the board as a director, as does Mitsubishi Motors Australia Limited’s recently appointed president and CEO Shaun Westcott.

Yamaha Motor Australia COO Brad Ryan also has a seat at the boardroom table, which continues to include Mr von Sanden and

Nissan Australia managing director Stephen Lester.

FCAI chief executive Tony Weber thanked outgoing members who he said had made a strong contribution to the chamber during their office term.

“The FCAI represents more than 40 automotive brands in the Australian market and these are some of the most recognised brands in the world which bring the newest and most innovative technology to consumers,” he said.

“It is very gratifying to see such strong support for the industry, by the industry, in the Australian market.

“The FCAI’s office bearers and directors represent some of the most experienced and talented individuals in the automotive sector.

“The industry is on the cusp of major change, with the advent of new technology such as zero- and low-emission vehicles, higher-level autonomous vehicles and changing customer and business models.”

FULL STORY: CLICK HERE

TOYOTA CHIEF ELECTED CHAIR OF FCAI BOARD

Matt Callachor

By NEIL DOWLING

and TERRY MARTIN

THE Society of Automotive Engineers – Australasia (SAE-A) has called on federal and state governments to help prolong the careers of GM Holden engineering staff made redundant and to capitalise on their experience as 100 left the company’s Port Melbourne headquarters for the last time on Friday.

The former Australian car-maker is in the midst of closing its entire operations and retiring the historic lion brand, with the last remnants of the globally recognised engineering and design divisions winding up over the next few weeks.

The remaining 100 Holden engineers, currently employed at the Lang Lang proving ground in South Gippsland, Victoria, will depart during August.

A number of engineers have found work with other car-makers and component suppliers, including several moving to the newly established VinFast technical centre in Melbourne.

However, SAE-A chairman and CEO Adrian Feeney last week urged government to play a major role in preserving the engineering expertise built up by Holden over many years.

He also described the departing engineers as “a valuable and irreplaceable asset that must be preserved and put to use”.

“These engineers are a priceless brains trust that could launch right into a new automotive venture such as the electric police car project SAE-A announced this week,” he said.

The SAE-A has proposed a specialist vehicle manufacturing

industry and last week revealed images of a police car based on an EV drivetrain and using composite body technology.

A feasibility study is being prepared to test the viability of a low-volume program that could be extended to other specialist vehicles such as ambulances and fire tenders.

Mr Feeney said the society was calling on federal and state governments to support the feasibility study to “save our engineering brains trust while we still have it”.

“The federal government has shown its willingness to support automotive initiatives with the recent Automotive Innovation Lab access grants administered by the minister for industry, science and technology, Karen Andrews,” he said.

FULL STORY: CLICK HERE

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EDITION 1028 - JUL 1, 2020

PAGE 16

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By CALLUM HUNTER

KIA revealed its new-generation Carnival people-mover last week, a model the South Korean car-maker claims has shed its multipurpose vehicle (MPV) moniker to become a GUV – that is, a ‘grand utility vehicle’.

Due for release in Australia late this year, the new Carnival’s GUV tag clearly stems from its striking redesign that pushes it more towards

the SUV genre than the traditional ‘minivan’ class, with this fourth generation emerging with a shorter front overhang, longer and higher bonnet and extended wheelbase.

As we reported recently when the first teaser images of the new Carnival were released, Kia is aiming to appeal to “progressive young families, with a leading combination of innovation, flexibility and style”.

The new model is also meant to look more dynamic and solid all-round.

At the front we find the latest take on Kia’s ‘tiger face’ design language with the big people-mover brandishing an equally new take on the ‘tiger nose’ grille finished in a new two-tone chrome mesh.

The grille itself is flanked by a new quad-headlight arrangement with the high- and low-beam lights sitting independently, the latter

actually being integrated into the corners of the grille.

Beneath the low-beam lights is an elaborate set of daytime running lights which feed into the chrome grille surrounds after wrapping around the integrated indicators, creating a buffer between them and the high-beam lamps.

The rest of the front fascia has been given a set of heavily contoured ‘cheeks’ while a large lower intake

is surrounded by metallic trim and a black lower bumper, further emphasising the SUV-like character.

The flanks of the Carnival feature some subtle body sculpting, highlighted by a full-length parabolic line running from the back of the headlight cluster to the start to the tail-light arrangement, taking in the rails of the sliding rear doors.

FULL STORY: CLICK HERE

Kia unveils new-generation Carnival family wagonahead of Aussie showroom arrival late this year

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Mini’s first all-electric model launches this month ahead of a showroom arrival in August, priced from $54,800 for the initial ‘First Edition’.

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THE BUSINESS PAGES OF GOAUTONEWS

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COMMENT by JOHN MELLOR

THE frustration at the recalcitrance shown by General Motors to listen to the Australian government’s demands for the company to negotiate in good faith with its dealers is boiling over in Canberra and trying the patience of the nation’s leaders at the highest levels on both sides of the aisle.

In spite of representation from the highest level of government to take the Holden dealer dispute to arbitration, GM Holden has once more ignored the government and dismissed out of hand a letter from a senior minister to GM Holden interim chief Kristian Aquilina asking for his co-operation in settling the matter.

The letter, now rejected, had suggested that committing to arbitration was a way that GM “could demonstrate that it was genuinely committed to solving the dispute”.

The anger in Canberra is plain and tempers are flaring. There will be fallout.

One thing is clear and that is that

GM Holden’s most recent behaviour towards the government is so palpably arrogant that it is going to set back, by years, any relationship the Coalition, and the Labor party, have with the OEMs and the Federal Chamber of Automotive Industries (FCAI).

The FCAI is now in danger of losing all credibility in Canberra.

It has watched helplessly as the political power within the motor industry moves from the OEMs over to the retailers and repairers whose presence and commercial contributions to their communities are politically strong within every electorate in Australia.

GM’s attitude can only make matters worse for the OEMs.

It is now dawning on the politicians and bureaucrats in Canberra that some foreign car-makers see themselves as a law unto themselves when it comes to their operations in Australia and that any reasoned entreaties to respond to the will of the Australian government are likely to be ignored.

Continued next page

Carly gets record subscribersDesire for more flexible commitment to cars and rental car availability combine to drive sign-ups

Dealers turn to auctionsManheim is seeing strong dealer demand for low-kilometre, high-quality used cars

[email protected]

Not just a view from the top.

GM ignores Canberra

GM is raising tempers in Canberra over dealer compensation and patience is wearing thin

The business pages of GoAutoNews

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Continued from previous page This will become the backdrop

for the upcoming Senate hearing into the Holden departure and weaken the position of the OEMs in the ongoing development of the Automotive Franchising Code.

By thumbing its nose at the Morrison government in this way, GM Holden’s credibility in Canberra is seriously being called into question.

The federal opposition has made the first strike against GM’s future operations in Australia by calling on ASIC to investigate the company GM set up to conduct its specialist vehicle plans – GM Special Vehicles (GMSV).

The opposition has suggested that GM may have created a phoenix company that it will

use to raise from the ashes the company it is winding down as it closes Holden’s operations. Labor wants the Australian Securities and Investments Commission to investigate. (See Labor letter below.)

The problem is that GM Holden is ignoring the clear intent of the Morrison government which only wants a fair compensation deal for the investment 185 Australian companies and their employees made in the brand that has been so abruptly curtailed. The latest developments …In an extraordinary series of events late last week and over the weekend, the Morrison government made it quite clear that it disapproved of GM Holden’s tactics of stonewalling dealers and using its uneven power

over a body of Australian businesses which are seeking more realistic levels of compensation for the loss of their Holden franchise.

With the June 30 deadline looming for dealers to agree to GM’s terms – or get nothing – Ministers Karen Andrews and Michaelia Cash as well as Senator James McGrath issued a statement urging GM to the negotiation table.

The joint statement said the ministers had met with GM in Canberra and that they had an “unequivocal expectation” that GM Holden would negotiate in good faith with the dealers.

GM responded by restating its position that it was not changing its offer.

The ministers said: “General Motors must honour its promise to negotiate on compensation with Holden dealers in good faith, amid significant effort from dealers to resolve their ongoing dispute.

“Dealers have repeatedly shown they are committed to working with GM Holden to reach an outcome and finalise protracted negotiations stemming from GM’s decision to retire the Holden brand in Australia.

“GM Holden should demonstrate that same commitment,” the joint statement said.

Then it emerged that over the weekend Minister Cash wrote to Holden’s interim managing director Kristian Aquilina saying that Holden should enter

into arbitration “as a matter of urgency” asking that the June 30 deadline be extended so that arbitration can take place. (See copy of letter below.)

The letter was leaked to the media.Holden responded in a note to dealers on Monday morning saying: “Dear Holden Dealers,

“As you may be aware there was some publicity over the weekend regarding a suggestion that GM Holden and the Australian Holden Dealer Council would seek to settle their current dispute via arbitration, and that the deadline for the acceptance of transition support packages (TSP) would be extended beyond 30 June.

Continued next page

“As you may be aware there was some publicity over the weekend regarding a suggestion that GM Holden and the Australian Holden Dealer Council would seek to settle their current dispute via arbitration, and that the deadline for the acceptance of transition support packages (TSP)

would be extended beyond 30 June.

“This is not the case. Arbitration was suggested by the Federal Government but GM Holden does not agree that an arbitration process would be appropriate or helpful.

We have responded to the Government accordingly.”– Holden response to dealers

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Continued from previous page

“This is not the case. Arbitration was suggested by the Federal Government but GM Holden does not agree that an arbitration process would be appropriate or helpful. We have responded to the Government accordingly.

“GM Holden’s dedicated dealer transition managers remain available to continue to speak with you to resolve any remaining issues with your TSP.

“Dealers must now make a decision on whether you accept your TSP. The deadline for the acceptance remains the close of business tomorrow, Tuesday 30 June.

“As we have always stated, we are keen to maintain an ongoing relationship with you and your business as we focus on supporting the 1.6 million Holden drivers out

there. We remain hopeful you agree to do the same.”Letter from Minister Cash to Mr Aquilina:

“The Australian Government is disappointed and concerned to hear that negotiations between you and the Australian Holden Dealer Council have again stalled.

“It has been the Government’s clear expectation from the outset that the parties should negotiate in good faith.

“In light of the failure of negotiations to resolve the dispute, it is the Government’s firm view that GM Holden and the Australian Holden Dealer Council should agree to enter into arbitration as a means to conclusively settle the outstanding matters in dispute.”

FULL STORY: CLICK HERE

“It has been the Government’s clear expectation from the outset that the parties

should negotiate in good faith. In light of the failure of negotiations to resolve the dispute, it is the Government’s firm view

that GM Holden and the Australian Holden Dealer Council should agree to enter into

arbitration as a means to conclusively settle the outstanding matters in dispute.”

– Letter from Minister Cash to Mr Aquilina

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PAGE 20EDITION 1028 - JUL 1, 2020

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By JOHN MELLOR

GOOGLE searches in auto-related categories have shown a positive increase in buying new cars, commercials and in buying used cars with some search terms ahead of searches this time last year by as much as 45 per cent in recent weeks.

This positive trend ties in with data published recently in GoAutoNews Premium which showed that traffic to auto classified and car research websites like Gumtree Cars, Autotrader, CarsGuide and Carsales is running at record levels.

What is surprising to observers of the Google search data is that there is more interest in buying motor vehicles right now than there was in

the first half of 2019 when demand was unaffected by the pandemic.

Across the ditch was also firm. In New Zealand, search terms grouped under cars and trucks were up 23 per cent and searches grouped as commercials were also up 23 per cent.

The latest data is relevant to June 18.

Industry Head and Melbourne site lead at Google Australia, Sean McDonell, told GoAutoNews Premium that in Australia interest in all auto-related search terms – effectively the total market – in the seven days to June 18 was up 42 per cent over the same seven days a year ago.

“Up until mid-March, the year-on-year searches had been above those of 2019. Obviously with COVID-19 hitting mid-March, much like the

rest of the economy, we saw a dip in searches and the 2020 number dipped below 2019.

“However, by mid-April consumer demand and searches begin to increase. That increase has continued

since mid-April and is now up 42 per cent year-on-year.

“The June 30 end-of-financial- year period plays a role, while the drop on demand in March and April would suggest demand may have been pent up and, with social

easing, we are seeing consumers come back into the market,” Mr McDonell said.

Peeling back a layer, the data shows the popular SUV and luxury vehicles markets were also up.

SUVs were up 29 per cent over the same period last year and searches for luxury vehicles were up 27 per cent over the same time in 2019.

“Interestingly, for both SUVs and luxury vehicles, the dip in mid-March was more significant than it was for cars and trucks as a category so the rebound has come from a larger decline,” Mr McDonell said.

“We also saw that SUVs and luxury vehicles recovered a lot faster and very quickly surpassed prior-

year SUVs and luxury searches although we saw those looking for a luxury vehicle were certainly back into the market a little bit quicker than those looking for an SUV.”

Mr McDonell said that this trend tied in with companion Google research of 400 consumers on factors influencing their decision-making on a purchase of a vehicle. The research showed that: 37 per cent of respondents agreed that the pandemic influenced their decision, with 29 per cent stating that economic or personal finance uncertainty was a factor.

“So the financial side was certainly paying a big role,” he said.

Continued next page

Tracking of auto searches shows buyers are far more interested in cars now than last year

Google: buyers ahead of last year

Sean McDonell

6/30/2020 Google-Australia-Melbourne-42.JPG

https://drive.google.com/corp/drive/folders/0B6f7sh1mgpdMcnVzZGhqOWdTdU0 1/1

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Continued from previous page

Searches for utes was up 11 per cent but is shadowing 2019 more closely than other search categories.

“The other hypothesis is that the trade businesses have been reasonably consistent through this period and largely unaffected by the virus so demand has remained consistent and a bit more like business as usual,” he said.

Used vehicle searches were up 39 per cent year-on-year in the last seven days and this ties into people’s views on future transportation.

“The hypothesis here is that more people are thinking about a vehicle for private use instead of public transport.”

Mr McDonell said a COVID-19 Community Mobility Report, based on aggregated data from Google Maps that indicates the places people are gathering, showed that visits to supermarkets and pharmacies have remained relatively constant

throughout the pandemic but, by contrast, use of public transport was down about 40 per cent and that has been consistent from May through to June.

“That illustrates that while people are still going to supermarkets and pharmacies, people are still shying away from public transport.

“It highlights that public transport is something the public are continuing to avoid and that correlates with this used car search trend that we are seeing,” Mr McDonell said

Searches for vehicle deals, where buyers are searching for some sort of financial offer like end-of-year special deal, and interest payment special offer, special service or warranty offer etc, were up 38 per cent year-on-year and up five per cent in the past week alone.

FULL STORY: CLICK HERE© 2020 KPMG, an Australian partnership. All rights reserved. 378288416ENT

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PAGE 22EDITION 1028 - JUL 1, 2020

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By JOHN MELLOR

VEHICLE subscription specialist, Carly, is having record sign-ups so far this year off the back of drivers seeking more flexibility of ownership in economically challenging times and the availability of cars from stressed car rental companies quitting stock.

The car subscription model has two requirements; drivers who want to avoid making a long-term commitment to a particular car and the availability of plenty of vehicle owners wanting to generate revenue from idle stock.

Both these requirements have come together for Carly; especially in May and June.

Chris Noone, the CEO of Collaborate Corporation, which owns Carly, told GoAutoNews Premium:

“Things are going pretty well.“Our enquiry rate for car

subscriptions during the initial stages of the COVID-19 restrictions in March to April increased by 39.6 per cent vs January to February.

“In May, the enquiry rate increased yet again to 88 per cent vs January to February.”

A breakdown of state/city performance showed:• Sydney enquiry rates increased

by 20.2 per cent during March-April (vs Jan-Feb) and 57.18 per cent during May (vs Jan-Feb).

• Melbourne enquiry rates increased by 11.73 per cent during March-April (vs Jan-Feb) and 52.80 per cent during May (vs Jan-Feb).

• Brisbane enquiry rates increased by 80.56 per cent during March-April (vs Jan-Feb) and 133.98 per

cent during May (vs Jan-Feb). “Our Brisbane market vs Sydney

and Melbourne has seen the strongest growth in enquiries with an increase of 133 per cent since the pre-COVID period of January to February, reflective of Qld being up and running much faster than NSW and Victoria,” Mr Noone said.

“During COVID, things slowed down a little. But we have just had our best week ever so that is a pretty good situation to be in.”

He said that, in writing record levels of subscriptions, Carly was placing record levels of idle car stocks with drivers.

“We are bringing in vehicles from dealers, ex-lease vehicles and also from the traditional car rental fleets.”

Mr Noone said the rental car companies were an especially strong source of cars right now because of the lockdown of the tourist and business travel industry.

“There is not much happening at the airports at the moment,” he said.

“Previously it was a bit of a challenge for us getting supply. But, as soon as COVID hit, all of a sudden we had quite good supply and that has been one of the contributing factors to us converting more enquiries into actual subscriptions because we do have a broad range of supply at the moment.”

FULL STORY: CLICK HERE

Desire for more flexible commitment to cars and rental car availability combine to drive sign-ups

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PAGE 23EDITION 1028 - JUL 1, 2020

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By NEIL DOWLING

AUTOMOTIVE auction specialist, Manheim, has seen increased demand in its digital auction “lanes” in line with a return of activity in the used vehicle market as well as an unexpected return of new vehicle sales volumes.

Manheim said franchise dealer-only digital auctions returned to similar volumes and pricing in May compared to pre-COVID-19 levels.

Manheim reports that these dealer-only auctions see low-kilometre, excellent-quality used vehicles make their way from OEM company fleets onto dealer lots, providing desirable stock for returning used car buyers as well as fresh used vehicle buyers.

The increase in volume and stronger pricing indicates dealers were purchasing with intent and to satisfy the demand they are experiencing online and in their dealerships.

Cox Automotive director of marketing and communications,

Matt McAuley, said the trend had also carried over to the open Manheim auction channels.

“Dealer participation in the now 100 per cent digital auctions more than doubled in May compared to March and April,” he said.

“Auction clearance rates are as high as they have been at any time this year and pricing has also recovered from a sharp dive in April with all segments seeing increases in May.

“The results reflect increased dealer and consumer confidence and there is no doubt the constrained supply of vehicles is assisting the recovery in pricing.

“The federal government’s increase in the threshold for instant asset write-offs from $30,000 to $150,000 is the main driver for prices holding up in the light-commercial segment which for most part have been unaffected by COVID-19 economic impacts.”

FULL STORY: CLICK HERE

Manheim is seeing strong dealer demand for low-kilometre, high-quality used cars

By NEIL DOWLING

VOLKSWAGEN AG is considering buying French car rental business Europcar to expand its fleet as the rental firm announces $A5.5 billion in debt and its share price has plummeted 80 per cent in the past year.

Europcar was last year hit by sagging revenue as the European tourist market shrank, mainly as

high-volume UK tourists stayed home in light of Brexit.

Europcar’s majority shareholder, listed investment company Eurazeo, put its share on the market in November 2019 as it hoped to avoid

the fate of US car hire business Hertz (which filed for bankruptcy protection in May).

When the pandemic hit the car rental market, Europcar, which operates in 140 countries and has almost 9000 employees, had to ask the French government for aid to guarantee loans of $A367 million.

FULL STORY: CLICK HERE

VOLKSWAGEN EYES EUROPCAR AS INTERNATIONAL TOURISM SAGS

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PAGE 25EDITION 1028 - JUL 1, 2020

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By JOHN MELLOR

IN THIS second edition of Dealer Talks, a new podcast series brought to you by Gumtree Cars, in partnership with GoAutoMedia, we have turned our attention to the used car market which is powering along quite unexpectedly in the wake of the COVID-19 pandemic following a realisation by buyers that there are some really good used cars to be had with new car warranties still attached.

We talked to David Brown, a senior manager at KPMG

Motor Industry Services; David Hanlin, a director of Universal Internet Services, an automotive digital marketing agency; and

Mathew McAuley who is director of marketing and communications at Cox Automotive Australia.

David Brown informed us about

the used car market and discussed the potential for the industry to see a shift of demand to more budget versions of cars within the various market segments – especially those

with long warranties. Mathew McAuley talked about

increased demand from dealers for used cars in online auctions

to levels higher than before the pandemic set in and David Hanlin discussed dealers taking more control of their stock and converting stock to

cash by leveraging their online presence.

The team pointed out that financially challenged buyers are looking at cars between $9000

and $15,000 and, in May, we saw that used car demand returned to a level not seen for 12 months.

The big message was that dealers working their CRM databases, pursuing end of finance contracts and appraising cars coming in for service are uncovering good used cars to meet this demand.

The conclusion was that The Road to Recovery looks like it will have a used car focus – at least in the short term.

The challenge will be finding the right cars.

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David Brown

© 2020 KPMG, an Australian partnership. All rights reserved. 378288416ENT

You’re the most important person in the showroomKPMG’s Motor Industry Services Team puts you in the centre when we map out strategies for your business.

We look at your dealership from every angle – wealth creation, customer focus, people, process, planning.

The right disciplines and the right data will drive the best results – but no two dealerships are alike.

So our specialists tailor their advice to fit your unique business needs.

Find out more about our customised approach to success and email the KPMG Motor Industry Services Team today:

[email protected]

David BrownSenior Manager Motor Industry Services KPMG

David Hanlin Mathew McAuley

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PAGE 26EDITION 1028 - JUL 1, 2020

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By NEIL DOWLING

HYDROGEN fuel-cell trucks are 10 months away from launch in Australia as US-based Hyzon Motors begins its export drive of zero-emission heavy-duty vehicles based on existing US and European truck chassis including Western Star and DAF.

Hyzon, the vehicle powertrain arm of Singapore’s fuel-cell manufacturer Horizon Fuel Cell Technologies, said the rollout of trucks and then buses seemed to be contrary to a lack of hydrogen fuel infrastructure in Australia but the company intends to get its foot in the door by starting with back-to-base fuelling.

Horizon’s CEO, Australian Craig Knight, told GoAutoNews Premium that he believed the timing was right

for hydrogen fuel-cell vehicles to become visible in Australia and that the zero-emission systems were ideal for heavy-duty vehicles operating as back-to-base fleets.

Ideally, the fuel would be sourced from a hydrogen producer at the vehicle fleet operator’s base.

He said Horizon saw itself as a provider of hydrogen vehicles and not a provider of the infrastructure.

“We see the most attractive use for hydrogen as diesel displacement. Making hydrogen can go to making electricity, for example, but we see the future (of the gas) as a sustainable, predictable fuel for trucking because hydrogen replacing diesel in trucks is very attractive once you have the technology right,” Mr Knight said.

FULL STORY: CLICK HERE

US-based Horizon says US and European hydrogen trucks could be here from early 2021

Hydrogen trucks for Australia

By NEIL DOWLING

AUSTRALIA’S first public hydrogen fuel station is under construction and expected to be completed this month. It will be the forerunner to at least four other stations to be opened by the end of the year.

The Australian Hydrogen Council reports that a station in the Canberra suburb of Fyshwick will open this

month, followed by one at the University of Brisbane, one at Adelaide’s Tonsley Park and one at the Toyota Australia facility in Melbourne’s Altona; all by the end of the year.

Western Australia has a plant already producing in the southern suburbs of Jandakot by gas company ATCO and will soon move to public sale.

There is also a $300 million project by Infinite Blue Energy at its Arrowsmith Hydrogen Project to be built this year in Dongara, 320km north of Perth. The green hydrogen plant, powered by wind and solar, is expected to start supplying at the end of next year and will produce 25 tonnes of hydrogen a day.

FULL STORY: CLICK HERE

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PAGE 27EDITION 1028 - JUL 1, 2020

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By NEIL DOWLING

VIDEO for dealer workshops and for sales purposes is becoming an important tool in recording and confirming work for customers – but now it is being expanded to cover other dealership activities including accepting online payments.

The GardX video platform called B2See uses a mobile phone as the portal to create and send personalised videos from the dealership staff to customers using either email or SMS.

Though video services such as this are generally dedicated to workshop activities and aftersales, GardX has enhanced it to suit sales, marketing, merchandising and allow it to link with social media pages to post videos about the dealership to Facebook, YouTube, Instagram and Twitter.

For aftersales, the service adviser can send details of repairs to a customer with repair items marked as red or amber – depending on the seriousness of the repair – which can be immediately authorised by the client.

It will also link to external finance providers including GoPay and OpenPay to allow customers to pay immediately and the dealership to instantly receive funds.

The sales aspect of GardX allows sales staff to create videos using a mobile phone. These can be sent to customers to assist with showing new or used vehicles where the customer is unable to attend to see the vehicle, as in the current COVID-19 environment or when the customer is too far away to personally attend.

A separate module allows dealers to photograph and video cars for sale and upload the result straight to an online classified advertising service such as Autotrader or Carsales. It only needs a mobile phone and some training from GardX to become proficient.

GardX has the ability to notify the dealership when a video is watched. This allows managers to see the effectiveness of the videos and, via the B2See Dashboard, even see the

performance from one salesperson to a whole team.

Marketing uses for GardX include the launch of a new model of car, for VIP occasions such as showroom openings and award presentations, and other campaigns where one video can reach multiple viewers.

An additional benefit of the platform is that it can publish reviews from customers onto the dealer’s website or social media.

Positive reviews are obviously

beneficial for business and represent an unbiased opinion, so much so that Google now factors reviews into its SEO rankings.

Ratings and reviews are one of the biggest factors used by consumers when selecting local businesses.

For merchandising, a video can be sent to a customer before the delivery of a vehicle showing what aftermarket products are available.

FULL STORY: CLICK HERE

New workshop video and payment service expanding through Australian dealer network

GardX opens dealer video service We’re ready

for all your workplace relations needs, including staffing, wages and awards

© 2020 KPMG, an Australian partnership. All rights reserved. 378288416ENT

The best strategies are built on partnershipsKPMG’s Motor Industry Services Team knows that building sales is just the start of making car dealerships great.

Are you looking for new strategies to improve after sales, network and team development, leadership or succession planning?

We’ll work with you to drive real value for your business.

To find out more, contact the KPMG Motor Industry Services Team:

[email protected]

Joel ShashouaDirector Motor Industry Services KPMG

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PAGE 29EDITION 1028 - JUL 1, 2020

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By NEIL DOWLING

LISTED company Australian Finance Group Ltd has been given approval by the nation’s corporate watchdog to merge with mortgage aggregation business Connective Group, creating Australia’s biggest business of its type for home and vehicle loans.

The deal follows Connective joining with RateSetter in 2018 to launch an online car finance product for the broker channel.

It allows Connective brokers to have exclusive access to low-rate online car loans from P2P lender RateSetter.

Connective said at the time that there was strong growth in vehicle loans through its broker network and that the RateSetter product would simplify brokers’ diversification into vehicle finance.

Connective has a network of

more than 3600 brokers across five states with a panel of more than 50 lenders.

The merged business will have more than 6575 brokers and combined mortgage settlements of more than $76 billion (FY2019 data).

In giving the merger the green light, the Australian Competition and Consumer Commission (ACCC) said it would be the largest mortgage aggregator in Australia and account for almost 40 per cent of all mortgage brokers.

ACCC chair Rod Sims said more than half of all Australian home loans lodged each year originate from the broker channel, and brokers play an important role for customers seeking a home loan and for lenders reaching those consumers, he added.

In a statement, Mr Sims said the

ACCC considered the acquisition’s potential impact on lenders, mortgage brokers and consumers.

He said that brokers played an important role for many consumers seeking a mortgage, and their services also allow individual lenders to access a wider group of potential consumers.

“The proposed acquisition will create the largest mortgage aggregator in Australia,” said Mr Sims.

“Our initial inquiries identified a

number of preliminary concerns, as set out in our statement of issues in February.

“We have now completed a second round of inquiries. After our extensive public review of the acquisition and our consultation with a wide range of interested parties, we believe the combined AFG-Connective is likely to continue to face robust competition,” he said.

The ACCC said AFG and Connective competed closely with

one another but believed that other established aggregators – including Finsure and the aggregators owned by the National Australia Bank – “are likely to continue to provide strong competition”.

“Mortgage brokers will still have a range of other aggregators, should they become dissatisfied with the combined AFG-Connective’s pricing or service,” said Mr Sims.

FULL STORY: CLICK HERE

Nation’s biggest finance aggregator created as ACCC approves AFG merge with Connective

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PAGE 30EDITION 1028 - JUL 1, 2020

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By NEIL DOWLING

CARSALES has announced that vehicle advertising and traffic volumes for the two-month period to June 16 had increased “very strongly” which it has attributed to signs of pent-up demand from existing owners and new buyers seeking to avoid public transport.

In its June 17 update to the Australian Securities Exchange (ASX), Carsales produced unaudited figures to indicate its progress through the 2019-20 financial year and also as a base for an outlook into the next financial year.

It said growth in revenue for 2019-20 was expected to increase by up to one per cent, with estimates of $419 million to $423 million, compared with the previous financial year which posted revenue of $418 million.

However, it sees net profit after tax growing by up to six per cent to $134 million to $138 million, up from the previous year’s $130 million.

But it is the increase in lead volumes and traffic that shows brighter times ahead. Carsales’ report said these had continued to improve as social distancing measures had been eased.

“Between April 22 and June 16, lead volumes have grown very strongly over the prior corresponding period of 2019,” it said.

It also reported that total inventory had decreased in the six weeks prior to mid-June with “a significant reduction” in the time to sell because of demand from buyers.

This was also attributed to dealers finding it difficult to obtain used

and new car stock and that first-time buyers and those without cars were adding a car to their household to avoid the COVID-19 fallout regarding avoiding public transport.

A survey of 3000 Australians in late April by Carsales showed people were considering future transport options.

It said that almost half (45 per cent) of non-car owners said their views on primary transport preferences have changed.

“The survey found that 58.8 per

cent of non-car owners are more likely to consider buying a car, and 38 per cent are ‘definitely’ likely to consider buying a car ‘right now’,” the company said.

“Meantime, 37 per cent of the same group stated they are less likely to use public transport, with around half that number (18 per cent) less likely to use rideshare services in a post-COVID-19 world.”

Carsales’ report to the ASX also revealed its concern about its

Webmotors assets in Brazil which has been hit hard by the pandemic, although its Encar business in Korea was performing “well”.

During the 2019-20 financial year, Carsales has also refinanced and was oversubscribed by its lending syndicate. It expects its dividend policy to remain unchanged with a payment equivalent to about 80 per cent of the adjusted net profit after tax.

FULL STORY: CLICK HERE

Lead and traffic volumes up as buyers seek cars instead of public transport

Carsales reports strong traffic

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PAGE 31EDITION 1028 - JUL 1, 2020

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By NEIL DOWLING

MINI has added some creative spark to the beleaguered national arts industry with an art competition and the chance to win arts vouchers and a car to drive for one month.

The COVID-19 lockdowns have shut the arts industry with the iconic Brisbane Powerhouse venue closing and cancelling the renowned Brisbane Comedy Festival at the 11th hour.

Now the outlook is brighter and Mini has partnered with Brisbane Powerhouse to invite artists, designers and creators to interpret the theme ‘Power Up’ on a Mini Cooper three-door hatch.

Participants will have the chance to win an opportunity to drive their custom-designed art Mini for one month. They can also take part

in a photoshoot with their Mini and receive a $200 gift voucher to enjoy Brisbane Powerhouse’s future presentations.

The Mini has been no stranger to playing dress-up. Since its 1959 launch, celebrities, designers and artists have been known to give the car a personalised makeover.

David Bowie created a mirror-plated Mini in 1999 to celebrate the company’s upcoming 40th birthday; designer Paul Smith also made his mark that same year, revealing a car featuring his signature stripes in 86 different colours; and the Beatles each had custom-made Minis delivered to them in 1965 with Ringo Starr’s car having a lift-up hatch to fit his drum kit.

FULL STORY: CLICK HERE

Brisbane Powerhouse arts venue partners with Mini to reignite creativity

Mini boosts arts POPULAR STORIES

CLICK HERE

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