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April 22, 2009 60,000 READERS WEEKLY No. 479

By MARTON PETTENDY in SHANGHAIPORSCHE admits it has put its reputation

on the line by launching an all-new model at

the height of a global economic downturn.

But it still expects to average at least 20,000

annual sales over the lifecycle of the $270,000-

plus Panamera, Porsche’s long-anticipated

fourth model line, which made its world public

debut at Auto Shanghai this week.

Porsche Cars Australia (PCA) is more

wary of making public sales projections

in the current economic climate, and has

reduced its overall sales expectations for

2009, but concedes its planning was based

on 200 Panamera sales a year.

That represents just one per cent of the

global Panamera sales forecast, even though

PCA’s slice of the global Porsche sales pie is

traditionally more like 1.5 per cent.

In fact, Porsche’s Australian sales were

down 16.2 per cent last year at 1157 sales,

representing a paltry 1.2 per cent of the

record 97,500 vehicles Porsche sold globally

in its previous fi nancial year. Worse still,

sales are down 40 per cent so far in 2009.

Naturally for a vehicle with the highest

starting price in the range, the Panamera

will be more exclusive in Australia than

the Cayenne (which found 534 buyers last

year), as well as the 911 (358) and Porsche’s

mid-engined model line, which attracted 275

sales in 2008, split almost evenly between

the Boxster convertible (142) and Cayman

coupe (123).

“Only a fool would try to predict what’s

going to happen in our market in terms of

car sales for the remainder on this year and

even early next year, because what we say

today in terms of numbers may be irrelevant

tomorrow,” said PCA public relations manager

Paul Ellis. “But our planning is based around

a couple of hundred units per calendar year for

the Panamera – around 200 annually.”

Mr Ellis added that PCA expected its 2009

sales decline to “even out” to around a 30 per

cent defi cit for the full year. Globally, Porsche

sales are down about 20 per cent this year.

Mr Ellis said Porsche had reduced its sales

expectations in Australia to better match

demand in a declining automotive market.

“We have amended our production to

refl ect the downturn and we’re not going to

over-supply the market,” he said. “We will

not be caught with cars stuck on wharfs this

year, so we have scaled back the business

accordingly.

“We’ve had very good and co-operative

discussions with the factory, so we’re

not going to be in a position where we’re

forced to sell cars. We haven’t reduced our

production a whole lot. (But) we’re going

to supply the market with what the market

needs and wants.”

While the Panamera grand tourer arrives

in Australia on October 3, its presentation to

international media on the eve of this week’s

Shanghai show was designed to underline

the signifi cance of China to Porsche. It was

Porsche’s fi rst model debut outside the US

or Europe.

Globally, Panamera sales are expected

to be split evenly between North and South

America, Europe and the rest of the world, but

key markets will include emerging regions

like the Middle East, Russia and China.

The latter is now the world’s second-

largest automotive market and where some

7560 Porsches were sold in the company’s

2007/08 fi scal year (up more than 145 per

cent on the previous year), making China

Porsche’s third most important market.

Some 2000 examples of the Panamera

– 10 times as many as in Australia – are

expected to be sold in China annually from

January 2010.

Australia may represent a tiny fraction

of global Porsche sales, but it has long

been one of the best-performing markets in

terms of market share – or penetration per

capita – and in its fi nancial contribution to

its Stuttgart parent company. Continued next page

Porsche’s fourth model line, the Panamera sedan, will also be its most exclusive

FUTURE OF THE FORD FALCON

- page 9

All hail PanameraAll hail Panamera

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All hail PanameraAll hail PanameraContinued from previous page

PCA is understood to rate among the top

three markets in the world in profi tability,

thanks to a relatively rich model mix that is

expected to continue with the Panamera.

“Australia is a very important market for

Porsche,” Mr Ellis said. “We might account

for less than 1.5 per cent of global sales but

our importance from a business standpoint

is greater than that.”

The entry-level Panamera S, pricing for

which was announced in mid-February at

$270,200, is expected to account for half of all

sales in Australia over the model’s lifecycle.

But the fl agship Panamera Turbo is

forecast to attract 35 per cent of sales –

despite a $364,900 pricetag that, like for

like, sees it narrowly undercut the top-shelf

911 Turbo coupe in positioning, which Mr

Ellis said was coincidental.

“We didn’t really look at 911 pricing

when it came to Panamera pricing,” he said.

“We looked at the specifi cation it offered in

the segment in which it would be sold and

that was the driving force when it came to

pricing the Panamera.”

The third variant to be available from

launch, the $282,400 Panamera 4S, which

combines the 294kW (400hp) 4.8-litre V8

from the S with the (twin-turbo 368kW, or

500hp) Turbo’s all-wheel drive system, will

comprise just 15 per cent of sales – in line

with the 911 model split in Australia.

“With our customers at that end of the

market, if you can afford the best, you buy

the best,” said Mr Ellis. “Around 45 per cent

of 911 sales in 2007 were top-end models –

Turbo, GT3 and GT3 RS. We know that our

customers will stretch to buy the best car if

they can. It’s pretty typical in Australia with

our cars.”

He said that unlike high-series 911 sales,

entry-level 911 sales were down. “What

we’re fi nding is that with our customers, we

might lose a 911 S (sale), but not necessarily

a Turbo sale. They’re a little bit more

committed at the top end of town.”

In Europe, the base Panamera S will be

available with a manual transmission, while

adaptive air suspension will be standard only

on the Turbo, which as previously reported

will feature an overboost function as part

of the Panamera’s unique Sports Chrono

package that includes launch control.

However, all Australian Panamera V8s

will come standard with a segment-fi rst

seven-speed dual-clutch automated manual

(PDK) transmission and air suspension,

plus full leather trim, 18-inch alloy wheels

and a fuel-saving idle-stop system, which

Porsche says is a fi rst with an automatic

gearbox in this segment.

Key options will include adjustable ride

height, larger wheels, various interior trim

colours, ceramic brakes, reclining rear seats,

and, in another world-fi rst, a speed-dependent

adaptive rear wing for the Panamera Turbo.

In a typical ‘top-down’ model release

strategy, the three-variant Panamera V8

range will be joined before October 2010

by a petrol V6 version powered by a

Volkswagen-sourced 3.6-litre engine and

priced above the 911 Carrera’s current entry-

level price of $219,300.

The Panamera Hybrid will then emerge

in 2011, powered by the same full parallel

petrol-electric drive system that will be

found in the hybrid version of the redesigned

Cayenne next year.

The latter will be at least 350kg heavier

than the 1770kg Panamera and has an

average fuel consumption target of less than

9.0L/100km, but it is unknown whether the

Panamera Hybrid will undercut 7.0L/100km

and therefore be exempt from luxury car tax.

“We’ve said we will introduce a V6 variant

of the Panamera and we will introduce a V6

hybrid version, but as is common practice,

you don’t release all your models at once

– we never have,” said Mr Ellis. “With the

product we’re talking about you tend to

launch with your best foot forward fi rst. The

cars that will carry most of the halo effect,

the image and the desire, are the top-end

models. At this end of the market you want to

establish desirability in the market. Nobody

needs to buy a Porsche. People want to buy

a Porsche. It’s about desire.”

Porsche AG’s executive vice-president

of research and development Wolfgang

Durheimer said the staggered Panamera model

rollout strategy was necessitated by both

marketing and engineering considerations.

FULL STORY: CLICK HEREPorsche on a high – next page

GoAuto News April 22, 2009 Page 3

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First impressions count, and Porsche’s maiden GT leaves an indelible mark

Porsche on a highPorsche on a high

By MARTON PETTENDY in SHANGHAIGOAUTO’S fi rst drive of the all-new

Panamera might be two months away at

its global media launch, but Porsche’s

fi rst four-door passed its fi rst test during a

lavish presentation to 300 members of the

worldwide press on the eve of its Shanghai

motor show public debut this week.

The venue was the 94th fl oor of the World

Finance Center, (for now) the tallest building

in a city of 20 million people, to which a single

graphite grey metallic-coloured Panamera was

tilted almost vertical in a cargo lift with just

millimetres to spare to be hoisted to the top.

Journalists were whisked more quickly at

400 metres a minute in the double-decker

public elevator to what is dubbed as the

world’s highest event platform almost half

a kilometre off the ground, before being

given our fi rst glimpse of Porsche’s ground-

breaking four-seater GT.

All of Porsche’s heavyweight executives

were present, with the inexplicable exception

of company chairman Dr Wendelin

Wiedeking, who was deemed too unwell to

travel just 24 hours before what was billed

as one of Porsche’s most historic occasions.

Appearing in the metal like a stretched

911 coupe even more so than in pictures,

the near-fi ve-metre-long Michael Mauer-

designed hatchback commands an imposing

presence but carries enough Porsche styling

cues to be unmistakable as part of the family,

despite having no predecessor.

Despite the long wheelbase and lengthy

overall proportions the roofl ine is more

coupe than sedan or wagon, and its front-end

topography is trademark Porsche, with front-

quarter wings that bookend a lower-slung

bonnet and end in newly styled headlights.

The Panamera interior is easily the

best Porsche cabin to date, with a design

and build quality that befi ts what will be

Porsche’s most expensive model range.

Biggest surprise is the rear-seat

accommodation that lives up to Porsche’s

claim of being able to seat two full-size

adults in complete comfort, in two lavishly

appointed rear pews separated by a large

centre console with integrated armrest,

cup-holders and ventilation system. Two

large central air outlets with individual

temperature controls are aided by a pair of

B-pillar-mounted vents for rear occupants.

Accessed by proper pull-type doorhandles

that are both highly practical and well

integrated, the rear door aperture is

unexpectedly sizeable and all four

doors are light to operate yet thud home

with distinctive Porsche solidity.

Foot space beneath the front seats

is tight but better than in many large

sedans, but rear legroom is so generous

– even with two-metre-tall occupants

seated up front – that that will not be

an issue for many.

Equally impressive is the acre of

headroom available in the rear, thanks

partly to the recessed rear headlining, as well

as the (optional) reclining rear seat function,

which comes with adjustable lumbar support

and an extending seat squab, but does not

recline all that much.

Only the tall window line necessitated

by the high-waisted exterior design detracts

from an otherwise airy and spacious feeling

in the Panamera’s rear seats, which could

only ever be described as claustrophobic

by kids – but they are not for whom the

Panamera is designed.

The hatch opens as high as the 911

Targa’s – perhaps too high for some – to

reveal a fully lined and illuminated luggage

area with chromed cargo hooks and a long,

but fairly shallow and narrow fl at fl oor,

underneath which is not a spare wheel but a

tyre infl ation kit.

Just as Porsche says the Panamera was

designed to accommodate “four Wiedekings”

(the Porsche boss is well over six feet tall), its

445-litre under-hatch space is also claimed to

swallow four suitcases. The 60/40-split rear

seatback folds almost completely fl at, offering

more Porsche cargo space than anything this

side of the Cayenne.

Fitted with optional Tequipment, the

Panamera interior offers an even more

sumptuous level of luxury via swathes of

Alcantara roof lining, rear DVD screens, a

rear privacy screen and wall-to-wall leather

in any colour one can imagine.

FULL STORY: CLICK HEREPlatform not exclusive – next page

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Porsche reveals the Panamera’s platform could be shared with VW

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By MARTON PETTENDY in SHANGHAIPORSCHE says its all-new Panamera

is the product of one of its most intensive

– and expensive – model development

programs, but its newly developed platform

is likely to be shared by other new models

in the Volkswagen and Audi brands it now

controls.

Asked if he ruled out the prospect of the

four-door Panamera’s new underpinnings

being shared by Volkswagen Group models,

Porsche AG executive vice-president

– research and development Wolfgang

Durheimer said: “No. I think if we look

into our common future together with

Volkswagen this platform could be checked

out and used for other products as well.”

Mr Durheimer told GoAuto the four-

door Panamera, revealed publicly for the

fi rst time at this week’s Shanghai motor

show in China, was underpinned by an all-

new Porsche-designed “clean-sheet”

platform codenamed G1.

Draped in Porsche’s fi rst

four-door bodyshell, he

dismissed speculation

that it would be used as

the basis of the second-

generation Cayenne

SUV due – with Porsche’s

fi rst hybrid drive system – in 2010.

He said the Panamera was not designed

to tow 3500kg like the Cayenne must, but

other possibilities for the brand-new rear/

AWD chassis architecture include models

from Bentley, Lamborghini or even Audi’s

upcoming A7 Sportback, which was

expected to have employed the A6 chassis.

Asked if further bodystyle derivatives of

the Panamera would be developed, such as

an estate/wagon or 911-style Targa version,

Mr Durheimer suggested the Panamera

model family may be extended beyond

the four-door ‘coupe’ that goes on sale in

Australia in October.

“For the time being this is the Panamera

and there are no other design alternatives

around yet,” said the chief Porsche

engineer.

More than four

years in the making,

at a cost of more than

€1 billion, the Panamera

is claimed to create a

new market segment by

combining the comfort

and accommodation of a

full-size luxury sedan with

the performance and dynamics of a

sportscar.

Billed as Porsche’s fi rst ever sedan –

even though, technically speaking, it is a

hatchback like the Cayman and 911 Targa

‘coupes’ and a fi ve-door like the Cayenne

SUV – the Panamera is now being built

alongside the Cayenne in a purpose-built

factory at Leipzig in Germany.

While the Cayenne and Panamera start

life on different production lines, the

manufacturing process sees both models

merge into one line, allowing Porsche to

increase or reduce the capacity of either

model as required.

Just as the Cayenne almost doubled its

annual projected build rate of 25,000 units at

one point, to 43,000, Panamera production

can easily be scaled up or down from its

forecast running rate of 20,000 cars a year.

The next-generation Cayenne is again

expected to share its chassis with the Audi

Q7 and VW Touareg.

While the Panamera’s 4.8-litre Cayenne-

based V8s are also produced at Porsche’s

Zuffenhausen engine plant in Stuttgart,

they are heavily modifi ed to fi t under the

Panamera bonnet, including a reworked oil

pan and top-end components.

Mr Durheimer said the Panamera also

shared its satellite-navigation, telephone

and ignition lock components with other

Porsche models, but was otherwise all-new,

thanks to a development program that at

its most intensive stage included up to 600

staff, many of whom are now employed in

testing the V6 and hybrid variants.

FULL STORY: CLICK HERENo orders... yet – next page

GoAuto News April 22, 2009 Page 5

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The primary focus of the role is to provide structure, leadership and motivation to the existing sales team to ensure the overall new car sales, profit and KPI objectives are met.

The ideal candidate should possess the following attributes:• A proven track record in managing a new car department.• Strong leadership qualities with excellent interpersonal skills.• Hands-on management approach.

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No orders... yetNo orders... yet

Porsche remains confi dent its GT will sell well hereBy MARTON PETTENDY in SHANGHAI

PORSCHE believes 90 per cent of

Panamera customers will come from other

brands and claims that its European order

bank is healthy ahead of its September

release there – but the same cannot be said

in Australia.

Porsche Cars Australia (PCA) is yet to

take any orders for the four-door Panamera,

which has been on sale since the release

of pricing two months ago ahead of its

nationwide release on October 3.

“There has been a lot of interest, a lot

of genuine interest, but no pre-orders that

I’m aware of yet, which is to be expected,”

revealed PCA public relations manager Paul

Ellis. “It is a new car – people want to wait

and see what it’s like. With a 911 you know

what you’re going to get so people do tend

to put their money down early, but with an

all-new car perhaps you want to see it and

drive it fi rst.

“We’re not aggressively pursuing pre-

orders for the car at this stage because we

don’t want to push it. People will want to see

and drive the car before they buy an all-new

model, which is normal.”

Mr Ellis said PCA was continuing

intensive direct marketing for the Panamera,

which he said had proved successful so far.

“We have done a lot of marketing, but

a lot of the marketing has been below the

line – highly targeted marketing to highly

targeted databases,” he said. “We went into

the market with a campaign that was quite

generic at fi rst and then asked people if

they wanted more information. Those that

did received more detailed information,

so we’re sort of holding their hands and

walking them through the process, which

has been very successful.

“There are no orders that I’m aware of –

there might be a few here and there – but I

wouldn’t say that’s an issue at all.”

FULL STORY: CLICK HERE

JAG XJ OUT OF THE BAGJAGUAR provided the fi rst offi cial look

of its all-new XJ with a teaser overhead

shot of the fl agship sedan appearing briefl y

at the end of its media presentation at the

Shanghai show on Monday. The Indian-

owned British marque will offi cially launch

the all-new XJ in London on July 9 ahead

of a Frankfurt show debut in September and

a showroom arrival at the end of 2009. It is

expected to arrive in Australia mid-2010.

FULL STORY: CLICK HERE

HERE COMES RAPIDEASTON Martin attempted to spoil Porsche’s

Panamera party at this week’s Shanghai

motor show by announcing that its

forthcoming Rapide is on course for a public

debut in late 2009 before fi rst customer

deliveries take place in early 2010. In what

is shaping up to be a four-door turf war over

the hip pockets of the well-heeled between

new models from two of the world’s most

hallowed sportscar-makers, the fi rst sedans

ever produced by Porsche and Aston will hit

the road within six months of each other. FULL STORY: CLICK HERE

GoAuto News April 22, 2009 Page 6

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Clean diesels headline Audi’s facelifted Q7 SUV range unveiled in Shanghai

Audi cleans up Q7Audi cleans up Q7

By MARTON PETTENDY in SHANGHAIWHILE BMW took the covers off its X5

M high-performance SUV after leaving

the limelight to the X6 version at the New

York auto show earlier this month, Audi

emerged as yet another German car-maker

with an important new world premiere at the

Shanghai motor show this week.

That vehicle was the updated Q7 seven-

seat luxury SUV, which features improved

fuel consumption and emissions – including

what Audi claims is “the world’s cleanest

diesel technology” – as part of a midlife

makeover due in Australia late this year.

Audi Australia has confi rmed to GoAuto

that it is investigating the new diesel

technology for local release after tighter

diesel fuel standards were mandated here.

“As part of our ‘progressive performance’

strategy, we are certainly very interested

to see clean diesel technology arrive

in Australia,” said spokesperson Anna

Burgdorf. “The major hurdle to date has been

the level of sulphur in our fuel. I understand

that we now offi cially legislate for less than

10ppm (parts per million) and therefore will

qualify for clean diesel technology.

“I can’t confi rm that it will defi nitely come

at the moment, but we are defi nitely looking

into its viability for Australian customers.”

Due in dealerships across Europe by July,

the upgraded Q7 is headlined by a more

powerful yet more effi cient 3.0-litre turbo-

diesel V6 – one of the Q7’s six direct-injection

engines. According to Europe’s combined

average fuel consumption standard, the

upgraded Q7 3.0 TDI consumes 9.1L/100km,

down from the 10.5L/100km offi cial average

achieved by the current model in Australia.

At the same time, performance outputs

rise from 171kW of power and 500Nm of

torque, to 176kW and 550Nm.

The clean diesel version is even more

frugal at 8.9L/100km, and not only meets

North America’s strict LEV II Bin 5

emissions standard but already complies with

Euro VI regulations not in force until 2014.

It does so thanks to an advanced version of

the 3.0 TDI’s common-rail injection system

that delivers 2000 bars of pressure, new

combustion chamber sensors and a high-

performance exhaust recirculating system.

The latter includes a DeNOx catalytic

converter that reduces the remaining nitrogen

oxides. Just upstream of the converter, a pump

injects an additive called AdBlue (replenished

during servicing), which decomposes into

ammonia, splitting nitrogen oxides into

harmless nitrogen and water.

The same technology has been applied

to the Q7 4.2 TDI, which reduces the

consumption of its V8 diesel engine from

11.1L to 9.9L/100km while increasing peak

power from 240kW to 250kW. Maximum

torque remains 760Nm (from 1750rpm).

Dubbed as the world’s most powerful diesel

SUV, the Q7 V12 TDI is due here within

months, delivering 368kW of power and a

staggering 1000Nm of torque from a 6.0-litre

V12 diesel engine that is closely related to

Audi’s three-times Le Mans-winning R10

TDI. As before, it can sprint to 100km/h in

5.5 seconds and return 11.3L/100km.

As for the Q7’s two petrol engines, the

3.6 FSI’s 3.6-litre V6 continues to offer

206kW/360Nm but consumption drops

from 12.7L to 12.1L/100km, while the Q7

4.2 FSI delivers the same 257kW/440Nm

but lowers its consumption from 13.8L to

12.7L/100km.

FULL STORY: CLICK HERE

Awesome S-class AMG twins make world debut

By MARTON PETTENDYMERCEDES-BENZ revealed

bahnstorming S63 and S65 AMG versions

of its facelifted S-class at China’s Shanghai

auto show this week ahead of an expected

Australian arrival in August as part of the

facelifted S-class limousine range.

Providing greater visual impact than

their predecessors are the same upgrades

that apply to the rest of the updated

S-class range, including new LED daytime

running lights, more aggressive front and

rear bumper treatments and fresh alloy

wheels.

To this, the S63 and S65 add three- and

four-bar chromed grilles respectively, and

carry over traditional AMG cues like quad

exhaust outlets and bootlid badging.

Alas, there are no changes to the

386kW/630Nm 6.2-litre V8 that powers

the S63 AMG, which scores Mercedes’

7G-Tronic seven-speed auto, nor the

450kW/1000Nm twin-turbo 6.0-litre V12

found in the S65 AMG, which sticks with

its fi ve-speed auto.p

S63 AMG

4.2 TDI

GoAuto News April 22, 2009 Page 7

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Analysing or Agonising

LF320 Mini clone emerges at Shanghai show ahead of likely 2010 Aussie debut

Lifan’s mini marchLifan’s mini march

By MARTON PETTENDY in SHANGHAIA DEAD ringer for Mini’s Cooper hatchback

has been revealed by China’s emerging Lifan

brand and it could go on sale in Australia

next year as part of a Lifan model range that

appears back on track to become the fi rst

Chinese passenger-car brand on sale Down

Under this year.

Dubbed the LF320 and featuring a

Mini-esque two-tone paint scheme with

black upper half, the fi ve-door micro-

hatch emerged as the smaller sibling to

Lifan’s LF520 light-car range at this week’s

Shanghai motor show.

As we have reported, the latter is the fi rst

Chinese-branded passenger car to receive

offi cial Australian Design Rule (ADR)

approval and was to have been released

here in early 2009 before the collapse of the

Australian dollar.

However, Lifan Motors spokesman

Steven Xu and local Lifan importer China

Motor Franchise (Australia) told GoAuto at

the Shanghai motor show this week that the

LF520 Yaris rival is back on track for a 2009

launch given the stronger Aussie dollar.

Furthermore, the LF520 should be joined

in 2010 by the new LF320 and the Corolla-

sized 620 sedan, which are the two newest

export-ready models to be launched by Lifan,

China’s third-largest vehicle exporter.

While Chery is China’s largest passenger-

vehicle exporter, Lifan claims it is on target

to overtake Geely as the nation’s second-

largest exporter this year.

If Lifan succeeds in its plan to export the

LF520 to Australia as early as September, it

will be fi rst Chinese-branded passenger car

to be sold here.

Ateco Automotive has confi rmed it will

release two twin-cab utilities from the Great

Wall Motors (GWM) brand here in June,

but the fi rst passenger cars from GWM and

Ateco’s other Chinese partner, Chery, are

yet to be ADR-certifi ed.

“The 520 will be the fi rst model to be

launched (in Australia), with 320 and 620 to

follow in early 2010,” said Mr Xu. “Our 320

and 630 right-hand drive models will not

enter for production for two to three months,

but in the meantime we can arrange all of

the documentation. They will both be global

cars, of course.

“Both the 320 and 620 will be easy

to homologate because we know they

don’t have any issues with Australian

homologation. We have rescheduled (the

520) for September, but this has to be

rechecked against the economic situation.”

Mr Xu and CMF(A) CEO Shaun

Lane cautioned the Lifan export plan

was dependent on improved economic

conditions in Australia, including a

continued improvement in the value of the

Australian dollar and a reduction of the price

discounting that is currently occurring.

“Currency was one of the problems

in Australia, but also because of the

crisis most of the global passenger-

vehicle manufacturers are down and

the major ones like GM and Chrysler

are dumping their inventories in many

countries,” said Mr Xu. “Also the

Korean currency is slowing down against

the US dollar so they have advantages for

exportation. That’s why we have problems

with lower volumes at the moment, as well

as some logistical issues. But both these

issues are improving.”

Unlike Ateco’s Great Wall business case,

which was based on the Australian dollar

being worth at least US70 cents, CMF(A)

has based its model on an Aussie dollar in

the high 80s to 90 US cents.

Lifan says its price advantage over its

most direct Korean rivals had eroded from

about 20 to about 10 per cent.

“The major problem in Australia is with

currency. We would have launched in

Australia already but we postponed because

the currency and the market was going

down,” said Mr Xu. “We are having a very

serious currency competition with Korea

because their currency is going down, but

before the (price) advantage was around 20

per cent.”

But Mr Lane said any Lifan vehicle sold

in Australia would need to be more like 30

per cent less expensive than its cheapest

rivals, as well as offering more equipment.

He suggested Lifan’s original target base

price of about $12,500 for the LF520 could

no longer be achieved without reducing the

level of standard equipment.

“It’s got to be a great-value proposition,”

he said. “It needs to have more features at

a lower price, but we’re looking at a few

things like de-speccing the car.”

FULL STORY: CLICK HERE

LF320

LF520i

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2009

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the most comprehensive data source on the Australian automotive industry

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RR4 NOW A ‘GHOST’ROLLS-ROYCE announced at this week’s

Shanghai motor show that its forthcoming

smaller model, known until now as the

RR4 and based on the 200EX concept, will

be called the Ghost.

FULL STORY: CLICK HERE

MG BACK IN FAST LANESAIC Motors unveiled two stunning new

vehicles at this week’s Shanghai motor show

– the MG6 Fastback, which looks set to herald

a return of MG to western markets, including

the UK, and the Roewe N1 concept, which is

also destined for Europe.

FULL STORY: CLICK HERE

BERTONE SHOW PONYITALIAN design house Stile Bertone has

taken the fi re-breathing Chevrolet Corvette

ZR1 and draped it in a new Italian suit

to create the Mantide, unveiled at Auto

Shanghai on Monday.

FULL STORY: CLICK HERE

PUG THREE-WHEELERPEUGEOT has made a budding car

designer’s dream literally come true by

building a life-size model of a sketch

that won him a global design competition

conducted by the French car-maker and

presented in Shanghai this week.

FULL STORY: CLICK HERE

By MARTON PETTENDY in SHANGHAIOF THE 12 new models Great Wall Motors

(GWM) showed at this week’s Shanghai

motor show, the H7 SUV and a Mercedes-

Benz CLS-style four-door ‘coupe’ concept

dubbed the CHC 011 attracted by far the

most attention.

Australian GWM distributor Ateco

Automotive says it has no information on

either model or their prospects of being

made available to Australia, but the Sailor

and Wingle dual-cab utilities that will go on

sale in Australian in June, badged the SA220

and V240 respectively, were also on hand.

Ateco managing director Ric Hull said

the light-sized Florid hatchback and Hover

mid-sized SUV were still in the process of

obtaining Australian Design Rule (ADR)

certifi cation, and both cars are still due on

sale here late this year.

He said the Peri had not been superseded

for Australia by the Florid, and was also

on Ateco’s wish-list for release here via a

60-strong national dealer network.

“The utes are still on target for June

(release) and the Florid and Hover are

progressing in the ADR process,” he said.

“We’re still on target (for launch) for late

this year. All the cars we’ve talked about are

still on the books and the Peri is lurking there

in the background somewhere. (But) I have

no details on any of the new cars here.”

FULL STORY: CLICK HERE

Great Wall windowGreat Wall window

By MARTON PETTENDY in SHANGHAICHINA’S Chery may be dragging the

chain when it comes to providing Australian

Design Rule (ADR) documentation for its

older A1 and A3 models, but that did not

stop it launching no fewer than three sub-

brands at this week’s Shanghai motor show.

While A1 is still in the race (with the

Lifan 520 light car) to become Australia’s

fi rst Chinese-branded passenger car, the

Riich M1 steps further upmarket by being

a direct rival to the likes of Toyota’s

Australian segment-leading Yaris.

In its home market, the Riich M1 will

also go up against Honda’s Jazz (Fit) and

the Suzuki Swift, which are also produced

in China.

The holder of Australia’s Chery

distribution rights, Ateco Automotive, told

GoAuto in Shanghai this week that it had

no information on any of the new models

launched at the show, including those in the

Riich, Rely or Karry sub-brands.

FULL STORY: CLICK HERE

Chery strikes it Riich with new sub-brands

CHC 011

Riich M1

MG6

Mantide

RD

GoAuto News April 22, 2009 Page 9

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TauTauTauTTTauTauTauTauTa rusrusrusus

AS SEEN ON THE ABC’s THE NEW INVENTORS

Falcon fate known Falcon fate known in 2010in 2010

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By BYRON MATHIOUDAKISFORD will decide next year if the next-

generation Falcon switches to front-wheel

drive or even all-wheel drive.

Confi rming the deadline last week, Ford

Australia president Marin Burela virtually

ruled out another unique-to-Australia Falcon,

revealing that the company would fall into

line with the Ford Motor Company’s global

resource-sharing program known

as “One Ford”.

This means the redesigned

Falcon will be based on North

America’s front/all-wheel-drive

Taurus unless FoMoCo revives

its global rear-wheel drive

development program, which was

expected to have underpinned the

next all-new Falcon and Mustang,

both of which are due around 2013.

Speaking at the opening of Ford’s Advanced

Centre for Automotive Research and Testing

(ACART) facility at its You Yangs proving

ground in Victoria, Mr Burela played down

the importance of rear-wheel drive as a unique

Falcon selling proposition, following extensive

market research by his company.

Ford Motor Co president Alan Mulally

said last August the next Falcon would share

a platform with other large front-drive or

rear-drive Ford models in the US. The global

rear-drive program has since been offi cially

halted, in the same way that General Motors

suspended further development of the Zeta

vehicle architecture that underpins Holden’s

Commodore and the Australian-designed

Chevrolet Camaro.

The lifespan of Ford’s unique inline six-

cylinder engine, which will be extended

beyond 2010 in Euro IV emissions guise, is

likely to be integral to the Falcon decision,

because the straight-six is unlikely to power

a front-drive or AWD drivetrain. And no

Australian start date has yet been mandated

for the strict Euro V emissions standard, which

could be expensive for the inline-six to meet.

As previously reported, the

medium-term future appears

secure for Holden’s billion-dollar

Zeta-based VE Commodore

range, which was launched in

2006 and is itself due for at least

all-new sheetmetal around 2013.

But intense media speculation

has surrounded the drivetrain

choice for Ford Australia’s next

large-car chassis architecture, given it will no

longer be unrelated to every other model in the

Ford world and yet will again be expected to

accommodate everything from new Ford and

FPV sedans and utes to a new Territory SUV.

Breaking Ford’s silence on the matter

for the fi rst time this year, Mr Burela said

that while chassis and engine decisions on

the next Falcon would be made in the next

12 to 18 months, Ford Australia was now

defi nitely locked in to the One Ford strategy

which aims to end wasteful duplication by

globalising all major vehicle lines.

This means that development of every

large Ford passenger vehicle – probably

including car-based crossovers and SUVs

such as the Territory and US-market Ford

Edge – will be centralised.

To get the nod as the ‘centre of expertise’

for Ford’s next global large-car program –

whether it be front-drive, RWD or AWD

– Ford Australia will have to gazump its

parent company’s own engineering team

in Dearborn, Michigan. If not, the Falcon

family could become rebodied versions

of the US Taurus or a host of other Ford,

Mercury and Lincoln models.

However, Mr Burela said Ford’s global

vehicle-development chief Derrick Kuzak

was highly impressed with the engineering

talent behind the development of the T6 light

truck that Ford Australia – in conjunction

with Mazda – is working on in Melbourne.

The T6 will be the new-generation version of

the current Ford Ranger and Mazda BT-50.

This news comes on top of Mr Kuzak’s

praise of the current FG Falcon series.

“We have a very capable rear-wheel drive

platform in Australia, and we don’t have to

change that tomorrow,” he told GoAuto at

the Detroit motor show in January.

Mr Burela, who previously worked as

global development head of the well-received

Fiesta, likened Ford’s global light car to a

guinea pig for the development of all future

Ford products under the One Ford regime.

“One Ford is important to us, and we’re

sticking to it,” he said. “In terms of what

(One Ford) means for Falcon in terms of a

nameplate and as a product, as people are

moving into different lifestyle vehicles they

are actually moving into all-wheel drive.

They’re not necessarily saying, ‘I want a

rear-wheel drive.’ Continued next page

Marin Burela

Next Falcon looks set for massive change as Australia falls into line with ‘One Ford’

GoAuto News April 22, 2009 Page 10

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Ford to decide in 2010 whether next Falcon will shift to front-drive or AWD

‘Not looking far enough’‘Not looking far enough’Ford chief laments local industry failure to see shift in buying patterns

Leading Auto Industry Companies

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Continued from previous page“As people are moving into different

sizes of cars based on their lifestyle needs,

they are saying, ‘A rear-wheel drive is not

absolutely critical to me. I’m quite happy

with a front-wheel drive.’

“So there are all these different things

that are going on, and I think our objectives

– and the things that we are working on now

from an Asia-Pacifi c standpoint, is: what

does that really mean?

“Are we able to go out there and give the

Australian consumer an all-new Falcon when

the time comes, and what does that all-new

Falcon have to provide? What powertrains

does it have to provide? What fuel economy

does it have to provide? Where do the global

powertrain systems fi t into that?

“All those are questions, all work is being

done, and I say that I will probably be able

– in the next 12 to 18 months – be able to

answer all of those questions.”

Mr Burela was more decisive about Ford

Australia going it alone with the Falcon

replacement: “Being Australian-only would

only allow us to participate only in the

Australian market.

“And we have learned very, very clearly

that it is important to have global reach. It

is important to have global scale with our

suppliers. It is important for us to go out

and utilise our development resources very

wisely, and it is critically important that

the product line-up that we deliver fi ts any

market in any location in the world, and that

it meets the needs of those consumers and

that market if we are going to be credible

and respected as a mainstream provider of

transportation.

“We have a source of excellence in

Australia that particularly understands large

cars. We also have a source in Australia that

understands the concept of what a new

Ranger (light truck) is, and it wasn’t so

long ago … that we had a lot of knowledge

and confi dence (with) small and medium

cars. We were in the small and medium car

(manufacturing) business once upon a time,

and as we are now, but in a different way.”

FULL STORY: CLICK HERE

By BYRON MATHIOUDAKISTHE Australian motor industry’s reliance

on large-car production has been described

by Ford Australia president Marin Burela

as “one of the biggest travesties” in local

decision-making.

Speaking at the opening of Ford’s new

Advanced Centre for Automotive Research

and Testing (ACART) at its You Yangs

proving ground in Victoria last week, Mr

Burela said all local manufacturers should

already be producing small or medium cars.

“I think that one of the biggest travesties

and issues that the Australian industry has

faced is that in Australia we were not looking

far enough into the future, to understand

where the consumer and where the market

would be heading,” he said. “All of us should

have been producing a small or medium

car in Australia today. Yet all of us are only

producing only large cars in Australia today.

“It is not a case of fault. I think it is a case

of, you make the decisions that you make at

the time based on the best source of input and

data and intelligence that you can gather.”

Toyota Australia produces the medium-

sized Camry and Aurion, promoting the

latter as a large car.

Ford and rival GM Holden are planning

to introduce locally made small cars over

the next few years, with Holden starting

production of a small car based on GM’s Delta

II global platform from late next year and Ford

Australia starting Focus production in 2011.

Mr Burela said small and medium-

sized cars had won the day in Europe, and

Australia would “redefi ne itself” over the

next fi ve or six years.

“We are going to see more and more

movement into the mid-sized and light

vehicles. I think you will see that it is

growing,” he said

Mr Burela said Ford expected the large-car

market to plateau at about 10 per cent. That

is roughly in line with the 2009 year-to-date

fi gure of 9.9 per cent, which is down from

11.8 per cent in the fi rst quarter of last year.

“I think you will see that there is an

ongoing large-car segment that is around the

100,000 units, and our forecasting right out

through to the end of the (next) decade is

that it will continue to be around that 90,000

to 110,000 unit fi gure,” he said.

“That then puts you in a pretty interesting

scenario playing: what do you do? Which

products do you invest in? How do you

make sure that you are well represented

across the broad spectrum?”

FULL STORY: CLICK HEREBurela optimistic – next page

Falcon

GoAuto News April 22, 2009 Page 11

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By BYRON MATHIOUDAKISFORD Australia president Marin Burela

is confi dent that new-vehicle sales will

improve next year in Australia as consumer

and business confi dence fi rms up.

However, despite the federal government’s

recent fi nancial stimulus packages, the Ford

chief fears the market will contract further

over the next few months as buyers reel

from the aftermath of the global fi nancial

crisis and growing unemployment.

“We feel that the second quarter will be a

very interesting and unsettling three months

because of all of the things that are going

on globally,” Mr Burela said last week. “We

believe that the last six months – particularly

the fourth quarter – I think we will see some

strength in the industry, and I think that that

will be driven by some settling down of

interest rates and exchange (rates), and the

settling down of oil prices.

“I think 2010 is going to be a stronger

year, a year that people will start seeing

some optimism again.

“US president Barack Obama has been

talking for the fi rst time with a bit of

confi dence, saying that we are seeing a little

bit of light at the end of the tunnel, (and)

we are seeing the housing industry going up,

we’re seeing sales on cars going up.

“It is a game of four quarters. It is like a

football match – things are starting to fi rm … It

does not matter which side of (governmental)

policy fence you are sitting on. My sense of

it is that in the Australian political system, all

parties are absolutely all focused on doing the

right thing for Australia.

“They may have different views on how

to get there, but they all have a view of

needing to deliver success, they need to

protect Australian jobs, they need to create

an environment for more investment, they

need to go out there and ensure that our

people are up-skilled, they need to provide

enablers for young people to be educated

so we can go out there and have a nation of

skilled and capable people of the future.”

Mr Burela also believes the Falcon’s

market share will improve over the next year

or so as fl eet and private buyers respond to

the improvements Ford has wrought upon

the range this year.

“(When we launched the Falcon one

year ago) we were caught … in the perfect

storm,” he said. “We came out with a brand-

new vehicle in mid-2008, at a time when the

world economy was falling apart.”

FULL STORY: CLICK HERETerritory under review – next page

Burela optimisticBurela optimistic

Ford believes car market will soon strengthen

Emissions trading scheme could give importers an unfair advantage: FordBy IAN PORTER

FORD Australia has told the federal

government the combined effect of a carbon

emissions trading scheme (ETS) and the

scheduled drop in tariffs in 2010 would

give exporting countries such as Thailand

a major boost in competitiveness against

domestic car-makers.

The cost impost of the ETS could amount

to “many millions of dollars” a year, Ford’s

government liaison manager Elly Haug said

in a written submission to the senate select

committee on climate change.

Ford’s submission said Ford would be

further disadvantaged under the proposed

ETS by the extra cost passed on by transport

companies that delivered locally made cars

around the country.

Importers are able to land their vehicles

at every major port, avoiding much of the

extra transport cost, Ford claimed.

Despite these concerns, the company

stressed that it supported the proposed ETS

and, in particular, applauded the inclusion of

the land transport industry. Land transport

has been omitted from some overseas

schemes, including in Europe.

The Federal Chamber of Industries

(FCAI) is also concerned about the possible

implications of an ETS, not least because

the car industry has not been picked up as

a trade-exposed industry under the ETS

arrangements. “One of the issues is that they

are a trade-exposed industry, although they

are not picked up in the emissions-intensive

trade-exposed industry arrangements that

have been proposed under the scheme,”

FCAI chief executive Andrew McKellar

told GoAuto this week.

FULL STORY: CLICK HERE

GoAuto News April 22, 2009 Page 12

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Territory

Territory under reviewTerritory under reviewDecision on Aussie-built SUV’s future powertrain line-up will be made soon

By BYRON MATHIOUDAKISFORD will reveal future Territory

powertrain options – including whether a

V6 turbo-diesel will be part of the package

– about June, according to Ford Australia

president Marin Burela.

Speaking to the media at the opening

of the Advanced Centre for Automotive

Research and Testing (ACART) facility

in Victoria last week, Mr Burela declined

to say if the future Territory powertrain

announcement would include details of a

long-rumoured diesel-powered FG Falcon

or possible turbocharged four-cylinder

petrol engine, saying only that every model

made in Australia was under review.

“The Territory segment – the medium-

SUV business – is a business that is pulling

50:50 between diesel and petrol, and the

real challenge here is which way do you go

in fact to be able to meet the consumer’s

needs,” Mr Burela said. “The consumer one

month goes out there and says, ‘I’m going to

buy petrol’ because petrol prices go down,

and then the next month when prices go up

they go out and buy a diesel – so we’re kind

of evaluating that right now.

“We will not be in any position to be able

to make an announcement on the powertrain

line-up on the Territory for about another

month and a half.”

Mr Burela said that once Ford was clear

on its direction, it would announce its plans

to the media.

“We will look at the whole portfolio

to make sure that we have got the right

balance between the right power pack for

the right car,” he said. “You have to be

careful that you are playing in the segment

that is growing the fastest – that is the most

important thing.”

Meanwhile, a Ford source has revealed

that next year’s Territory facelift was due

to be released much earlier, but fell behind

as the company reorganised after Ford’s

global reshuffl e in 2006 in the wake of Alan

Mulally’s appointment as CEO.

“We simply had more important priorities

than to do Territory at the time,” said the

source, adding that any proposed changes

fell well down the ‘things to do’ list.

Ford makes a ‘powershift’ – page 14

Do not look for big discounts on base Falcon ACART A LIFELINEBy BYRON MATHIOUDAKIS

FORD Australia president Marin Burela

has declared that Ford will not mimic the

Commodore’s $29,990 driveaway pricing

by rival GM Holden several months ago.

He also said recent fuel economy and

emissions gains would endear the Ford

Falcon to more private and fl eet buyers

as they realised how competitive some

Falcon variants were against four-cylinder

rivals such as the Toyota Camry and Honda

Accord VTi.

“Our competitors have been out there

competing with pricetags like $29,990

driveaway,” he said. “We looked at that,

and we said, ‘You know what, we’re not

going there!’ We are just not going there.

“Because we know that type of behaviour

only comes back to bite you through residuals,

and it creates all sorts of issues and problems

as you start to move forward. You know, you

really start having the ‘morning after’ effect

some time further down the track.

“We’ve continued to promote value,

quality, safety, fuel economy, and

technology, and it’s worked for us.

“At the bottom end of the market, I think

that people have been bargain-hunting at

the $29,990 level, and I think people may

not have been in the market buying a large

car, but have always wanted a large car, and

so went out and bought a large car.

“But what we’re also seeing is that in

that mid-series, there has been an enormous

amount of activity there.”

Mr Burela said more people were now

shopping for Ford, with vehicles such as

the Falcon ute growing in volume.

“The Falcon ute is another ... leading

the Commodore ute year-to-date,” he said.

“Yet, once again, we do very, very little

active advertising on the ute, yet people just

keep coming in and buying it.

“(So) how do we get the Australian

consumer to go back and buy Australian-

sourced, Australian-produced cars,

particularly if they meet their needs in

terms of fuel economy, cost of ownership,

safety, quality and so on?

“I am particularly proud that we are

the fi rst Australian company to meet fi ve-

star safety in Australia in terms of locally

produced cars. Also (that Falcon with the ZF

six-speed automatic manages) 9.9L/100km

– that’s the equivalent to four-cylinder

competitive vehicles here in Australia.

“There are some mainstream high-

volume four-cylinder vehicles that are

achieving that level of fuel economy.”

FULL STORY: CLICK HERE

FORD Australia’s new $19.7 million

Advanced Centre for Automotive Research

and Testing (ACART) at its You Yangs

proving ground near Geelong, Victoria, is

designed to attract customers from all areas

of the automotive industry in Australia and

from around the world.

One Ford source revealed that several

parties from Australia and overseas

were talking with the company about

using the world-class facility as soon as

possible, although their identities remain

confi dential.

Nevertheless, the source said ACART

should provide a “very good” income for

Ford Australia over the next few years as

automotive clients took advantage of the

facility’s wide range of environmental,

emissions and engine-development

capabilities.

FULL STORY: CLICK HERE

Marin Burela (centre) with ACART partners Iven Mareels (left) and Victorian innovation minister Gavin Jennings

XT

GoAuto News April 22, 2009 Page 13

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By BYRON MATHIOUDAKISNISSAN will straddle the medium and large-

car segments with the J32-series Maxima

sedan launched in Australia this week ahead

of a June 1 showroom debut.

Priced from $33,990 and now built in

Thailand, the seventh-generation Maxima

retains the basic exterior dimensions of its

Japanese-made J31-series predecessor, but

introduces a smaller, 2.5-litre VQ25DE V6

base model – known as the 250 ST-L – to

take on four-cylinder rivals such as the

Honda Accord VTi, Toyota Camry and

Mazda6 sedans.

Nissan has had no medium-class

contender in Australia since the demise of

the unsuccessful U13 Bluebird in December

1997.

The new Maxima pricing represents a

$1000 drop compared to the previous entry-

level ST-L, despite an increase in standard

specifi cation, but power and torque levels

fall with the capacity cut in the 250 ST-L.

Meanwhile, the lauded 3.5-litre V6

engine carries over albeit in much-modifi ed

VQ35DE form in the mid-range 350 ST-S

($37,990) and luxury 350 Ti ($46,990)

model variants, meaning that the cheapest

Maxima that matches its predecessor’s

performance abilities now actually costs

$3000 more than before.

Nissan counteracts this by arguing that –

along with a redesigned body and completely

restyled interior featuring higher-quality

trim – the J32 Maxima’s front-wheel drive

platform is much improved over the J31

model’s FF-L architecture.

Shared with the Z51 Murano mid-sized

SUV as well as a host of other larger models

available elsewhere, Nissan’s ‘D’ platform

architecture introduces a new MacPherson

strut front suspension with shock absorbers

featuring in-built rebound springs for fl atter

cornering abilities, and a multi-link rear end

with shock absorbers positioned closer to

the tyres for stability gains.

Nissan claims Japanese

engineers accumulated data

in Australia before altering

the Maxima’s suspension

tune to local tastes. Models

benchmarked for ride and handling qualities

include the Toyota Aurion.

The new Maxima is claimed to have a 40 per

cent increase in torsional stiffness compared

to its predecessor, while front lateral stiffness

increases 85 per cent. Body rigidity improves

as well, Nissan says, due to the adoption of an

X-shaped cowl top structure.

The extensive use of weight-saving high-

grade ultra-high-tensile steel (980MPa class)

and multiple load path construction for

greater absorption and dispersion of impact

energy also contribute to a stronger Maxima

than before, which in turn reduces noise,

vibration and harshness levels. More sound-

deadening material also helps here, but the

engineers have managed to contain weight

increases to between 46kg and 83kg.

Nissan is predicting that about 40 per

cent of the 2400 or so J32 Maximas sold in

Australia in the fi rst 12 months will be the

250 ST-L base model.

Its 2.5-litre all-aluminium DOHC

24-valve petrol V6 with Continuously

Variable Valve Timing Control

System (CVTCS) is part of

Nissan’s famed VQ family of

engines, but has never been

offered in Australia in this

small-capacity confi guration.

Running on regular unleaded

petrol, the 2.5 produces 134kW of power at

6000rpm and 228Nm of torque at 4400rpm. It

returns 9.5L/100km on the ADR 81/01 cycle,

which, Nissan emphasises, is 0.4L/100km

better than the Camry’s 117kW/218Nm

2.4-litre four-cylinder engine can manage.

The 350 ST-S and 350 Ti models use the

revised 3.5-litre VQ35DE V6 delivering

185kW at 6000rpm and 326Nm at 4400rpm.

These fi gures represent a 15kW rise but a

7Nm fall from before.

The offi cial combined

fuel consumption fi gure is

10.2L/100km, which is a

0.6L/100km improvement,

but 0.2L and 0.3L/100km worse than the

Accord V6 and Aurion respectively.

Nissan says that 80 per cent of both

V6’s torque outputs occur at 1600rpm,

while a different mounting system reduces

vibration.

Driving the front wheels is a revised

version of the previous car’s continuously

variable transmission dubbed X-Tronic,

utilising new software and other changes

for improved shift response and quality. It

also features a six-speed Tiptronic-style

sequential-manual mode.

Other mechanical changes include

the introduction of a new speed-variable

hydraulically powered rack and pinion

steering system, while the braking system

includes four-wheel discs (ventilated up

front) supported by electronic stability and

traction control. ABS brakes with EBD and

brake assist are also fi tted standard.

Other standard features across the range

include dual front and dual front-side

airbags, and full-length curtain airbags.

Nissan believes that its goal of doubling

the appeal of the Maxima with its twin-

strategy positioning is underscored by

higher-than-expected equipment levels.

FULL STORY: CLICK HEREDRIVE IMPRESSIONS: CLICK HERE

Nissan’s new Maxima is quieter, comfi er, safer - and, at long last, fun to drive

Relax with MaxRelax with Max

PRICING:250 ST-L (a) $33,990

350 ST-S (a) $37,990

350 Ti (a) $46,990

GoAuto News April 22, 2009 Page 14

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PRICING:CL hatch/sedan $21,990

CL hatch/sedan (a) $23,990

LX hatch/sedan $24,290

LX hatch/sedan (a) $26,290

TDCi hatch $28,290

TDCi hatch (a) $30,290

Zetec hatch $27,290

Zetec hatch (a) $29,290

XR5 Turbo hatch $36,990

Coupe-Cabriolet $45,490

Coupe-Cabriolet (a) $47,490

Ford’s facelifted Focus features a fresh face, classier cabin trim and a diesel with a dual-clutch transmission

Focus makes a Focus makes a ‘powershift’‘powershift’

By BYRON MATHIOUDAKISFORD has fi nally completed its LV-series

Focus hatch and sedan range rollout a year

after the LV XR5 Turbo fl agship turned up

in Australia in May 2009 and around 18

months since the facelift surfaced at the

2007 Frankfurt motor show.

However, the South African-built Focus

coming to Australia is subtly different to its

European-built counterpart, carrying over

the previous side sheetmetal – presumably in

an effort to save money. This is most evident

in the pronounced door crease bisecting

the doorhandles on the German-built XR5

Turbo that other LV Focuses do not have.

Ford said the styling changes to the front

of the South African Focus were performed

in Melbourne.

Prices have rocketed by $1500 for the base

CL hatch and sedan, now starting at $21,990.

Nevertheless, Ford still expects half of all

Focus buyers to choose this variant.

The other volume model, the mid-range

LX hatch and sedan, has crept up by $300

(and should account for about 30 per cent

of sales), although this variant now includes

the previously optional curtain airbags,

electronic stability control and traction

control.

The remaining 20 per cent of Focus sales

should be split evenly between the sporty

Zetec, priced from $27,290, and TDCi turbo-

diesel, priced from $28,290. Their prices

move up by $800 and $300 respectively, but

both gain the aforementioned safety gear as

standard.

Ghia is gone, ending a 33-year run of

‘luxury’-branded small Fords wearing the

once-proud Italian coachbuilder’s coat of

arms (the 1975 Escort Ghia introduced Ghia

on Australian Fords), but the XR5 Turbo

lives on from $36,990.

Except for the doors and roof, the LV is

a reskin of the previous two Focus models

– 2005 LS and 2007 LT – and features

the ‘kinetic’ design language devised by

former GM Europe designer Martin Smith.

This styling has also been

deployed on the latest-

generation Mondeo (MA

series, 2007) and Fiesta (WS

series, 2009).

This is clearest in the LV

Focus’ nose, which includes

a sleeker set of headlights and

grille, a larger Ford badge,

and a different bumper bar.

Modifi cations were also

made to the rear window

shape on the hatch, as well

as the tail-lights, bumpers and positioning

of the badges. Larger side mirrors and new

colours complete the exterior massaging.

The changes inside are limited to a

restyled central dashboard fascia, revised

instruments and the addition of fresh

convenience items like USB and Bluetooth

connectivity. All aim to lift the perceived

quality of the Focus’ cabin.

Underneath, one of the biggest changes to

the Focus is the addition of an ‘automatic’

gearbox on the TDCi. Dubbed ‘Powershift’

and co-developed with Getrag,

it is Ford’s six-speed dual-clutch

automated gearbox to take on

Volkswagen’s successful DSG

unit.

Low fuel consumption is a

Powershift highlight: Ford claims

the combined fi gure is 5.9L/100km

– just 0.3L/100km more than the

TDCi with the six-speed manual.

Ford hopes the Powershift

version of the TDCi turbo-diesel

will help lift sales against the popular

Golf TDI, as buyers in this segment prefer

automatics. Powershift features a low-speed

‘creep’ function that emulates a regular

torque-converter automatic transmission,

but without the heavy fuel consumption

penalties. It also has a sequential-manual

shift mode.

The power (107kW at 6000rpm) and

torque (185Nm at 4500rpm) of the 2.0-litre

four-cylinder petrol engine – as seen on

the new Mazda3 – remains

unchanged, although Ford

says it can now run on

E10 (10 per cent ethanol)

fuel. The 2.0-litre TDCi,

offering 100kW at 4000rpm

and 320Nm at 2000rpm

(or 340Nm during brief

overboost periods), can also

now operate with a B5 (fi ve

per cent) bio-diesel mix.

CO2 emissions are rated

between 147g/km (TDCi

manual) and 194g/km (2.0 petrol with the

four-speed automatic; the standard fi ve-

speed manual’s output is 169g/km).

For the record, the LV XR5 Turbo’s Volvo-

built 2.5-litre fi ve-cylinder turbocharged

petrol engine’s headline numbers are 166kW

at 6000rpm, 320Nm from 1600-4000rpm,

9.3L/100km and 224g/km.

The South African plant that supplies

our CL, LX, Zetec and TDCi models only

commenced manufacturing the LV series late

last year – up to a year before the European

plants such as the Saarlouis facility in

Germany that makes our XR5 Turbo. Hence

that car’s earlier introduction.

Total Focus sales for the fi rst three months

of 2009 are down 17.2 per cent compared

to last year, in a small-car segment that has

contracted 15.2 per cent, against the total

passenger-car market’s 18.1 per cent fall and

an industry-wide slide of 19.2 per cent. Ford is

hoping to sell at least 1300 Focuses a month.

DRIVE IMPRESSIONS: CLICK HERE

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FriF iFF itzzz tzHHHHenenHenHe derdderd soon

Henderson hits backHenderson hits back

By IAN PORTERGENERAL Motors has ramped up pressure

on holders of its unsecured debt and the

United Auto Workers union by admitting it

is still working hard on a bankruptcy plan.

New chief executive offi cer Fritz

Henderson said late last week that GM did

not have a lot of time for negotiation and

was working as hard on the bankruptcy as

on a negotiated solution.

“We are working alongside (the US)

treasury to make sure they’re comfortable and

confi dent that this plan will accomplish the

goals we have mutually established,” he said.

“That means we are ... taking the watch apart

step by step and rebuilding it to make sure we

have a purpose in every one of our brands.”

Mr Henderson said GM would have its

new business plan ready sometime this

month, and that it would include more plant

closures and more retrenchments. However,

he said the company was still planning to

retain four brands in its new guide: Chevrolet,

Cadillac, Buick and GMC/Pontiac.

GM’s bondholders and the union’s retiree

health benefi ts plan are owed a total of

$US48 billion ($A66.7 billion) and have

refused an earlier offer containing a little

cash, new debt and a lot of new GM shares.

GM has to meet the Obama government’s

June 1 deadline for producing a new plan

that will leave a slimmed-down GM with a

healthier balance sheet and a viable business

plan. A key part of creating that healthier

balance sheet will be the retirement of a

great deal of debt, paid for with elements

other than cash.

Reports in Detroit suggest the president’s

automotive task force is now urging GM to

drop the notion of including any cash or debt

in any compensation offer to bondholders

and the union.

The company is being urged to offer new

shares in exchange for the $US48 billion of

liabilities, a move that is likely to leave the

bondholders and the union in charge of GM

as the major shareholders.

The government is also reportedly willing

to take new GM shares in settlement of

the $US13.4 billion ($A18.6 billion) loan

advanced earlier this year.

While Mr Henderson settled on the future

brand strategy, he was less clear on how to

resolve the issue of reducing the numbers of

GM dealers across North America.

It cost GM about $US1 billion to close

down Oldsmobile dealers a year or two

back, but it appears likely there will be

little or no cash available to compensate the

dealers which are going to be terminated as

the company reduces the network from 6246

to 4100 outlets by 2014.

“I think the conclusion reached by the task

force was that that plan was not suffi cient for

speed,” Mr Henderson said, adding that GM

was talking to dealers about how to speed up

the dealer reduction program.

The new GM chief said things were

looking up in Europe, where GM had

received “well more” than six approaches

about Opel/Vauxhall.

“And they are serious people, many of

them fi nancial players and some of them

industrial players,” said Mr Henderson. “In

terms of liquidity in Europe, our business

has actually performed better than expected,

which has been helpful.”

He said the disclosure process had started

and that would be completed in “two to

three weeks”, indicating a sale could follow

soon after. He said the scrappage programs

in Europe and the release of the Insignia had

helped sales, while production cost cuts had

been “vigorous”.

“We still have issues in front of us but,

frankly, we have been snowplowing expenses

and doing a little better in the market.”

Mr Henderson said directors had decided

to pull the AC Delco parts business off the

market after deciding that offers were too low.

“Given the linkages of this business to

General Motors – whether it is purchases,

whether it is dealers – we just concluded

recently that we’re not able to achieve the

kind of price we would need for this business

to justify selling it. “We are going to keep

this business, run it and grow it and it is a

very good business and highly successful.”

He said there had been three approaches for

Hummer and he was expecting fi nal offers by

the end of this week (April 24). He expected a

decision to sell before the end of the month.

PONTIAC UNDER THREAT: BLOOMBERG: CLICK HERE

GM chief increases pressure on debtors, union - and claims Pontiac is not for sale

GoAuto April 22, 2009 Page 16

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Market Update

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Roger Reilly Drewe Apps

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DEALERSHIP WEBSITES

By IAN PORTERDIESEL recently regained its position as the best-performing alternative drivetrain in terms of new-vehicle passenger-car and SUV sales, although LPG is set to kick along soon.

The main graph on this page shows how sales of drivetrains grew – or shrank – each month for the past year, compared to the same month in the previous year.

In the middle of 2008, diesel was leaping ahead at more than 40 per cent a month, while hybrids and LPG cars (essentially the Falcon E-Gas) improved more than 20 per cent in June.

Interestingly, sales of petrol cars were already shrinking by the middle of the year due to a gradual rise in fuel prices, while diesel continued to climb until June, before crashing into negative territory in October.

Meanwhile, Ford’s E-Gas Falcon (the only LPG car included in the VFACTS figures) continued with strong growth, most often above 20 per cent for the second half of the year.

In fact, the E-Gas Falcon continued to grow right through the first months of the global financial crisis, but plunged into deficit in March as large cars generally took

another hit. Ford is confident, however.“We anticipate that the addition of dynamic

stability control to our E-Gas range – which also brings with it a five-star ANCAP safety rating – will have a positive impact on LPG passenger sales, particularly to non-private customers, in the coming months,” said Ford spokeswoman Sinead McAlary.

Diesel sales plunged in the second half of 2008 as the financial crisis hit. Diesel sales were probably hit by the pending luxury car tax, which would have deterred a few sales among prestige-car buyers.

Peugeot reports that diesels hit a high of 59 per cent of sales in March 2008 and averaged 53 per cent for the year. Since then they have averaged 48 per cent of sales, although the French marque does not believe the diesel story is fading.

“Given the generally higher admission price for diesel models, the fact that these variants have consistently averaged more sales than our petrol models … indicates that a lot of customers recognise the inherent benefits in Peugeot’s diesel technology – such as greatly

improved fuel efficiency, significantly reduced CO2 emissions and higher torque outputs,” spokesman Mark McCartney said.

Diesel sales have improved steadily since then, although, oddly, it looks as if diesel buyers may be thinking short-term and buying long-term.

From December on, the gap to the petrol price has steadily narrowed and diesel buyers have closed the gap to the point where March sales were down only eight per cent on the previous March. At that point, petrol car sales were still down 19 per cent and LPG sales down 27 per cent.

Any financial crisis makes people more aware of the price of everything, and this appears to be hurting sales of hybrids, which carry a heavier premium than diesels.

After running at growth rates around 20 per cent in the June quarter of 2008, hybrid sales were on the back foot for the rest of the year, apart from a modest spike in November.

This year has been no better and hybrid sales in March were down a whopping 39 per cent from the previous March.

Momentum shifts back to diesel cars as Ford awaits another LPG sales spike

’Train of thoughtMonthly move by engine type

(Apr 2008 - Mar 2009)

% c

han

ge

fro

m p

revi

ou

s ye

ar

Prices of various fuels (Apr 2008 - Mar 2009)

$0.40

$0.60

$0.80

$1.20

$1.40

$1.60

$1.80

Fue

l pric

e pe

r lit

re

$2.00

$1.00

Apr Jun OctAug DecMay Jul Nov Jan Feb MarSep

DieselPetrol LPG*

Sources: Australian Institute of Petroleum and LPG Australia

* Wholesale price Saudi Arabia

0-10

-20

-30

-40

10

20

30

40

50

60

Apr SepAugJunMay NovOctJul JanDec MarFeb

DieselPetrol LPG Hybrid

Source: VFACTS

GoAuto April 22, 2009 Page 17

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Green issues in the auto world

GoAuto Green is brought to you by Custom Fleet

Custom FleetPart of GE Commercial Finance

Green

MMMMMMMMMMMMMMMinMiMiiMininMinMiniMinMiniMinMinMinMiMM nnMinMinMinMinMinMinMinnMinMMinnM i Ei Ei Ei Ei EEEi Ei EEEEEi Ei Ei Ei EEi Ei EE

EV ‘activism’EV ‘activism’

By DAVID HASSALLTHE British government last week announced a new £250 million ($A514 million) program to encourage the sale of electric vehicles (EVs) from 2011.

Motorists will save between £2000 and £5000 ($A4110 to $A10,270) when they buy an EV as a result of the initiative, which was announced by business secretary Peter Mandelson and transport secretary Geoff Hoon. The payment applies to EVs that “meet modern safety standards and have a range and top speed suffi cient to give mass-market appeal”, which appears likely to exclude the six vehicles currently available in the UK from niche car-makers.

The government package also includes £20 million ($A41.1 million) for charging points and related infrastructure.

The package has attracted criticism in the UK, where many commentators described it as a gimmick while some industry representatives said it was a lower priority than the need to do something to boost new-car sales in the short-term.

Mr Hoon said that with less than 0.1 per cent of the UK’s 26 million vehicles being electric there was “a huge untapped potential” to reduce carbon emissions by promoting the rollout of EVs.

“The scale of incentives we’re announcing today will mean that an electric car is a real option for motorists as well as helping to make the UK a world leader in low-carbon

transport,” said Mr Hoon.Lord Mandelson repeated the

government’s contentious claim to be leading the world in setting ambitious carbon reduction targets and said that road vehicles were a big part of the program, despite the fact that transport accounts for only 19 per cent of emissions.

“Low-carbon vehicles will play a key role in cutting emissions (and) government must act now to ensure that the business benefi ts of this ambition are realised here in the UK,” Lord Mandelson said. “We want the British motor industry to be a leader in the low-carbon future, and government must direct and support this, through what I call new industrial activism.”

The two ministers made their announcement at the Knockhill race circuit in Scotland, where they were chauffeured around in a British-built Mini E, 500 of which are being modifi ed in Munich for fi eld trials in Germany, the US and the UK over the next 12 months before a decision is made on putting it into series production.

The two-seat Mini E produces 150kW of power and 220Nm of torque, and boasts 0-100km/h performance of 8.5 seconds with an electronically limited top speed of 150km/h. It is recharged in four hours from a normal power plug or 2.5 hours with a high-amperage ‘wallbox’ provided by BMW.

FULL STORY: CLICK HERE

Green group dismisses scrappage scheme benefi ts

Drive Lightly with Custom Fleet.To find out how to reduce your fleet’s carbon footprint, call Custom Fleet on 1800 812 681.

MMMMMMinMinMinMinMinMinMiM nii EEEi Ei Ei Ei EEi

Government handouts aim to ignite British EV sales

By MARTON PETTENDYA BRITISH green vehicle lobby group has

dismissed the UK’s proposed automotive

recycling scheme as simply another motor

industry bailout that will not reduce carbon

emissions.

The UK automotive industry is pushing

for a so-called scrappage scheme similar to

the one that has resulted in a spectacular

spike in new-car sales in Germany, where

buyers of Euro IV emissions-compliant

cars less than 12 months old are given

€2500 ($A4940) if they scrap an existing

vehicle more than nine years old.

Proponents of scrappage incentives

say encouraging people to buy safer and

‘cleaner’ new cars will reduce the road

toll and lower overall vehicle emissions as

well as stimulate new-car sales.

Opponents point to the substantial

costs involved and the fact that cheaper,

imported vehicles tend to benefi t more

than locally manufactured vehicles, and

question the environmental impacts of

increased vehicle recycling.

But the Environmental Transport

Association (ETA) in the UK, which is

expected to introduce a £2000 ($A4127)

incentive for drivers who swap old cars

for newer models, says such schemes also

“routinely fail to take into consideration

the amount of energy required to build a

vehicle in the fi rst place”.

FULL STORY: CLICK HERE

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

Terry Martin at tmartin@mellor.net

By RON HAMMERTONGM HOLDEN’S head offi ce at Port

Melbourne ran on a skeleton staff last week

as the white-collar workforce joined factory

workers on down time in response to the

global fi nancial crisis.

Only workers with critical ongoing

roles or urgent projects were exempt

from the company decision to extend the

Easter break by three days. Hundreds of

workers at the HQ191 building – centre of

Holden’s administration, sales, marketing,

purchasing, corporate affairs, design and

engineering operations – took annual leave

or brought forward rostered days off to

cover the days. As Tuesday was already a

day off for Holden workers, the extra days

covered Wednesday to Friday.

GM Holden national media manager

Scott Whiffen told GoAuto that the

decision to extend the Easter break was a

cost-cutting measure, similar to Holden’s

extended Christmas shutdown.

“We are in an environment where we are

trying to save every dollar,” he said. “The

vehicle operations and the engine operations

are both down at the moment, so the view

was that this would be a good opportunity to

pull that lever to stretch the Easter break.”

Mr Whiffen said he was unsure how many

workers had taken the days off, but suffi cient

staff remained at their desks to ensure

business did not suffer. “The intention was

that people would be off unless there was a

pretty good task to be performed,” he said.

“But it is not like the business has ground to

a halt.” The forthcoming launch of the new

Holden Cruze small car is one project that

remains a priority.

In an effort to weather the storm, Holden

executives, including chairman and managing

director Mark Reuss, have taken pay cuts,

while salaries for others have been frozen.

Holden’s Vehicle Operations plant at

Elizabeth, South Australia, and its Engine

Operations factory at Port Melbourne,

Victoria, were both shut last week – the

latest in a string of temporary closures to

bring inventories into line with diminished

demand.

Meanwhile, GM Holden, unions and its

factory workers are still working through

the details of Holden’s proposal to switch

to a single-shift, two-crew operation at

its Elizabeth plant on May 4. Mr Reuss

announced the switch on April 3, saying

the change would enable the company to

cut production to 310 units a day while

preserving jobs ahead of the introduction of

Holden’s new fuel-effi cient four-cylinder

small car in 2010.

The plan was to offer workers a one-week

on/one-week off arrangement, or fortnight

on/fortnight off, with those on downtime

getting 50 per cent pay. Mr Whiffen said the

switch was still on target but discussions

were continuing on how to implement

it. “The mechanics of that are still being

worked through,” he said.

WHITE-COLLAR WORKERS TAKE LEAVE AS HOLDEN STRIVES TO ‘SAVE EVERY DOLLAR’

NZ DEALER CREATES JOBS WITH ATECO EXPANSIONBy TERRY MARTIN

PROMINENT New Zealand dealer

Andrew Simms has expanded his operations

to become the sole representative for Ateco

Automotive’s Alfa Romeo, Citroen and Fiat

brands in Auckland.

Launched offi cially last week, but trading

since April 1, the new ‘Andrew

Simms European’ dealership

has created 14 new jobs after

a $NZ500,000 ($A396,000)

investment to house the Ateco

brands.

The outlet, which adds to Mr

Simms’ profi le as one of the

leading Mitsubishi dealers in

New Zealand (with six branches), has also

attracted headlines with a “buy one, get one

free” launch campaign, which throws in a

Citroen C4 with every C6 bought, and a

Fiat Punto with every Alfa Romeo Brera.

Ateco’s previous Auckland representative

was Continental Car Services, with former

Alfa Romeo brand manager John Statham

and team members David Millar and Clive

Sellers among the sales staff and technicians

transferring to the Simms operation.

“There is no doubt that the car

industry is facing a tough period

of change,” Mr Simms said. “But

we are taking the long view that

we have to invest for the future

and make decisions now that will

protect jobs and maintain the

growth of our company.”

Ateco Automotive NZ general

manager Lawrie Malatios said: “Ateco

wanted one company to represent all its

brands in Auckland and we were attracted

to Simms by their national reputation for

customer care and professionalism. As

our business relationship has developed

we have been greatly encouraged by their

plans, their long-term commitment and

their passion for our new business.”

FULL STORY: CLICK HEREAndrew Simms

GoAuto News April 22, 2009 Page 19

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GoAuto’s latest car review www.GoAuto.com.au

Holden Special Vehicles W427 sedanHOLDEN Special Vehicles has fi nally bitten the bullet and put a 7.0-litre Chevrolet V8 in one of its Commodore-based cars. Holden’s performance arm had built a racer-for-the-road

Monaro with a similar 7.0-litre engine as a concept back in 2002 and even started taking cash deposits for the car it called the HRT 427. Unfortunately, the business case didn’t add up and HSV pulled the pin on the mighty coupe. Its second attempt, the W427, is

not a road racer, but a luxury sedan with a race-bred Chevrolet engine. HSV upgraded the W427 with a new manual transmission, improved brakes, unique interior trim and details, special wheels and unique styling. It also doesn’t come cheap, with the W427 attracting a sticker price of $155,500.

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FIRST PROTON MPVPROTON is understood to be considering

a new people-mover and light-commercial

van for Australia, but with a more powerful

powerplant than the standard 1.6-litre petrol

unit fi tted in Malaysia. The new Proton Exora

was launched last week in Kuala Lumpur

in MPV form only, but Proton managing

director Syed Zainal Abidin told Associated

Press that the platform would spawn light-

commercial variants for local and export

markets, including a van and pick-up.

FULL STORY: CLICK HERE

STELLA EV UPGRADESUBARU has responded quickly to

Mitsubishi’s near-production i-MiEV

electric vehicle (EV) by boosting the power

of its Plug-in Stella EV a full 18 per cent.

The electric motor’s maximum power output

has risen 7kW to 47kW, bringing it to the

same level as the i-MiEV, while maximum

torque has climbed 20Nm to 170Nm.

FULL STORY: CLICK HERE

AUSSIE BOTTLERAUTOMOTIVE carpet made from recycled

soft-drink bottles has won two awards for

Australia’s biggest parts supplier, Futuris

Automotive, at the top US supplier industry

awards night. The Futuris EnviroTuf carpet

was recognised as a breakthrough because it

realised a long-held ambition to recycle PET

bottles into useful products. It is already in

production and is being fi tted to Holden’s

Commodore, although Futuris is aiming at

the US market, too.

FULL STORY: CLICK HERE

SKYLINE CROSSES OVERTHE upmarket Infi niti EX SUV that is

high on Nissan Australia’s wish-list for its

proposed Infi niti luxury division in Australia

has been released in Japan as the Nissan

Skyline Crossover. But Nissan Australia will

not follow its Japanese parent company’s

lead, preferring to save the EX for the Infi niti

stable should economic conditions improve

suffi ciently to roll out the blue-blood brand

for another attempt Down Under.

FULL STORY: CLICK HERE

BUYERS WARY: STUDYIF CAR purchasing intentions are any guide,

the effects of the global fi nancial crisis could

be with us for years, rather than months,

according the latest survey of buyer intentions.

While the Roy Morgan poll of intending new-

vehicle buyers shows a distinct improvement

in medium-term intentions, more would-be

buyers will be staying on the sidelines in the

next 12 months.

FULL STORY: CLICK HERE

NISSAN ’RING FINGERNISSAN’S intermittent stoush with Porsche

over Nurburgring fast-lap bragging rights

has swung in the Japanese manufacturer’s

favour with a blistering 7min 27.56sec lap

last week by Nissan test driver Toshio Suzuki

in a Nissan GT-R at the legendary 20.8km

German track. It was two seconds faster

than the previous best lap by Mr Suzuki in

testing of the Nissan GT-R a year ago, and

eclipsed – by less than half a second – the

best lap by Porsche test driver Walter Rohrl

in a Porsche Carrera GT in July 2004.

FULL STORY: CLICK HERE

SUPER GRANTURISMO MCMASERATI has offi cially unveiled its race-

ready GranTurismo MC, which will be sold

to “gentleman drivers” from October 2009

at a price of about €135,000 ($A245,000)

plus national consumption taxes. To be sold

directly through the Italian company’s race

outfi t, Maserati Corse, the GranTurismo MC

revealed at the Paul Ricard circuit in the south

of France is based on a prototype introduced

last September at Monza in northern Italy.

FULL STORY: CLICK HERE

MITSUBISHI RECALLMITSUBISHI Motors Australia Limited

(MMAL) has issued a recall notice for its

Lancer small car and Outlander compact

SUV to avoid a potential brake failure.

Around 21,000 vehicles are being recalled

in the national campaign, which according

to Product Recalls Australia (PRA) involves

the brake booster check valve sticking.

FULL STORY: CLICK HERE