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- SUBSCRIBE FREE: www.GoAutoMedia.com ADVERTISE: Steve Butcher Ph: Sep 4, 2013 No. 694 Go AutoNews John Mellor’s Australia’s No.1 Automotive Industry Journal 70,000 Readers Weekly LUBRICANTS. TECHNOLOGY. PEOPLE. fuchs.com.au Glass’s - The Auto Specification and Residual Value Specialists Dealer power base New national body set to fight for Australian car dealers’ commercial interests By JOHN MELLOR AUSTRALIAN car dealers have moved to take control of their future dealings with federal government bodies and with the car franchises they represent by setting up a single body that will fight exclusively for dealers’ commercial interests independently of state motor trades associations. Under the initiative, a new national body, the Australian Automotive Dealers’ Council (AADC), will be set up as a separate entity. The key to the initiative is that the new AADC will be run by car dealers, funded by car dealers and run primarily to promote and protect the business interests of car dealers. One of the driving forces behind the move has been a remarkable shift in the past few years in the balance of power between car companies and their retailers. The Council will strengthen its political connections in Canberra, fund resources to assist retailers negotiating dealer agreements and provide funding for litigation should disputes reach the courts. For example, GoAuto has been told that negotiators from the new Council would potentially play a representative role in Opel’s withdrawal from its dealer agreements rather than these negotiations, involving millions of dollars in settlements, being run instead on a dealer-by-dealer basis. Politically, dealers have struggled to have their case heard favourably in Canberra in moves to have a specific Franchise Code enacted to take into account the huge investment risks undertaken by car retailers with onerous conditions and short tenure resulting from what dealers say is caused by negotiating from an uneven bargaining position. Continued next page IN THIS ISSUE INDUSTRY NEWS FBT, election hit car sales LPG industry campaign LATEST LAUNCHES Ford Fiesta Mercedes-Benz A45 AMG Volvo V40 Cross Country FRANKFURT SHOW Jaguar C-X17 Kia Niro Nissan X-Trail Peugeot 208 Hybrid FE Volkswagen e-Golf, e-Up Volvo Concept Coupe AND MUCH MORE... An Opel dealership under construction in Melbourne prior to the brand’s withdrawal

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Page 1: Dealer power base · morning next week (September 11) immediately following the three-day ... Google Zeitgeist, 2012 gumtree.com.au/dealers 1300 137 304 By BARRY PARK ... in stages

- SUBSCRIBE FREE: www.GoAutoMedia.com ADVERTISE: Steve Butcher Ph:

Sep 4, 2013 No. 694

GoAuto NewsJohn Mellor’s

Australia’s No.1 Automotive Industry Journal 70,000 Readers Weekly

L U B R I C A N T S .

T E C H N O L O G Y.

P E O P L E .

fuchs.com.au

Glass’s - The Auto Specification and Residual Value Specialists

Dealer power baseNew national body set to fight for Australian car dealers’ commercial interests

By JOHN MELLORAUSTRALIAN car dealers have moved to take control of their future dealings with federal government bodies and with the car franchises they represent by setting up a single body that will fight exclusively for dealers’ commercial interests independently of state motor trades associations.

Under the initiative, a new national body, the Australian Automotive Dealers’ Council (AADC), will be set up as a separate entity.

The key to the initiative is that the new AADC will be run by car dealers, funded by car dealers and run primarily to promote and protect the business interests of car dealers.

One of the driving forces behind the move has been a remarkable shift in the past few years in the balance of power between car companies and their retailers.

The Council will strengthen its political

connections in Canberra, fund resources to assist retailers negotiating dealer agreements and provide funding for litigation should disputes reach the courts.

For example, GoAuto has been told that negotiators from the new Council would potentially play a representative role in Opel’s withdrawal from its dealer agreements rather than these negotiations, involving millions of dollars in settlements, being run instead

on a dealer-by-dealer basis.Politically, dealers have struggled

to have their case heard favourably in Canberra in moves to have a specific Franchise Code enacted to take into account the huge investment risks undertaken by car retailers with onerous conditions and short tenure resulting from what dealers say is caused by negotiating from an uneven bargaining position.

Continued next page

IN THIS ISSUEINDUSTRY NEWSFBT, election hit car salesLPG industry campaignLATEST LAUNCHESFord FiestaMercedes-Benz A45 AMGVolvo V40 Cross Country

FRANKFURT SHOWJaguar C-X17Kia NiroNissan X-TrailPeugeot 208 Hybrid FEVolkswagen e-Golf, e-UpVolvo Concept Coupe

AND MUCH MORE...

An Opel dealership under construction in Melbourne prior to the brand’s withdrawal

Page 2: Dealer power base · morning next week (September 11) immediately following the three-day ... Google Zeitgeist, 2012 gumtree.com.au/dealers 1300 137 304 By BARRY PARK ... in stages

Sep 4, 2013 Page 2

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GoAuto NewsJohn Mellor’s

Better service. Clever technology. A brighter future.The Great Migration is Happening

Switch to Australia’s fastest growing DMS. | auto-it.com.au

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PUBLISHER: John MellorEDITOR: Terry Martin MANAGING EDITOR: Mike CostelloJOURNALISTS: Barry Park, Tim Nicholson, Byron Mathioudakis, Ian Porter PRODUCTION: Luc Britten, Ian JamesEDITORIAL ASSISTANT: Daniel GardnerProduced by GoAutoMedia: Ph: (03) 9598 6477

ADVERTISING: Steve Butcher Ph: 0419 562 110

GoAuto NewsJohn Mellor’s

Continued from previous pageThe new structure and details of how

the new body will be implemented will be the subject of a 75-minute briefing and Q&A session open to all dealers attending the AADA Convention at Surfers Paradise on Wednesday morning next week (September 11) immediately following the three-day convention’s opening keynote address by Martin Ward, the CEO of AP Eagers.

The new AADC has been in the planning stages for some time and follows a report prepared for dealers by Deloitte Motor Industry Services by its then managing director, Wayne Pearson, in 2010.

That report recommended a completely independent secretariat funded by a levy on all dealers of $10 a car that would result in an annual budget of more than $10 million a year.

A key concern of dealers has been that by being housed within the state

motor trades bodies, dealers’ interests were being decided by non-dealer board members, many of whom were in fact in competing segments of the industry and were therefore potentially conflicted.

The move is designed to give dealers the same business services and political and commercial clout as the National Automobile Dealers’ Association (NADA) in the United States.

NADA has been very successful over the years in direct negotiations with car companies on behalf of dealers and also funds legal expenses for dealers who have been wronged and are seeking redress before the courts.

NADA also funds political candidates in state and federal elections who are sympathetic to the employment and economic roles dealers perform in their constituencies.

The new AADC will also set up convention, education and training services for car retailers.

A key plank of the new arrangement is for the state motor trades associations to continue to provide dealers, as continuing members of those associations, with highly valued OH&S

and industrial relations services, as well as representation at a state level with government bureaucrats.

Each of the state associations will have one share in the new AADC and each will elect a board member. Dealers will elect a further five directors for the new AADC.

An implementation committee has been formed and an interim board of 10 influential dealers Australia-wide will be appointed. Ian Field, the AADA elected chairman and also the CEO of MTAQ, will chair the interim board until elections can be held.

Registrations are still open for the 2013 AADA National Dealer Convention, to be held

at the Marriott Hotel and Resort, Surfers Paradise, Queensland, from Wednesday, September 11, to Friday, September 13.

Register online at: www.aadaconvention.com.au

Dealer power base

2013 NADA Convention

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Tax reform, election cyclepush industry sales down,but Mazda marches ahead

FBT, election hit car sales

Territory

By BARRY PARKPARTS of Australia’s new-car industry are tapping the brakes as pre-election uncertainty about the federal government’s proposed changes to fringe benefits tax start to bite.

However, while sections of the industry are mired in doom and gloom, others are seeing the benefits of a shift in the way buyers and dealerships connect.

Preliminary figures seen by GoAuto ahead of today’s official release of VFACTS sales data for August suggest some brands are struggling in the wake of changes that make it more expensive for workers to salary sacrifice or lease a vehicle.

With total industry sales believed to be down 2.2 per cent for the month, some brands, such as Mazda, are continuing to post strong results while others, particularly those that rely heavily on vehicle lease sales, are taking a hit.

The federal election campaign is also believed to be keeping buyers away from showrooms temporarily.

Ford, which slammed the proposed changes that almost switched off the novated leasing industry overnight, has again been hit hard with Falcon sales falling to another record low, and Territory sales slumping as renewing leaseholders shy away from dealerships.

Ford’s decision to pull out of manufacturing in Australia in 2016 is also likely to be a factor in the ongoing sales decline of its locally built models.

Falcon sales for August are expected to bottom out to about 570 units – the large family car’s worst month on record – while the Territory SUV is expected to post a figure of about 830 sales – almost half the number it sold only two months earlier, and well below rival Holden’s 1250 sales for its Korean-made Captiva7.

Ford Australia communications and public affairs director Sinead Phipps said the fall in sales was in line with what the car-maker had predicted back when the FBT changes were announced in mid-July.

“We anticipated a significant slowdown, which we saw in July, and that we expected and anticipated to continue into August and September once we got past the election,” Ms Phipps said.

“That did occur, so as you know we

had previously taken changes to our production in August and September to allow for that, and I think the resulting figures for the industry in August show that we took the right measures.”

Ms Phipps said it was clear buyers were waiting for the result of the federal election before making a buying decision. She also said Ford did not have “any more days planned” of factory downtime beyond the 12 days it had already slated across August and September.

“We will wait and see as we move through September whether we need to do anything more later in the year, but at this stage we don’t have any more planned,” she said.

The numbers also appear to be stacking up against Japanese brand Nissan, with small-car staples such as the Micra (about 270 units) and Pulsar (880), and even its X-Trail compact SUV (590), suffering big slides when compared with the previous month.

FULL STORY: CLICK HERE

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Sep 4, 2013 Page 4

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GoAuto NewsJohn Mellor’s

Find out why

Where the buyers are...Find out why we’re Australia’s #1most searched brand on Google.Google Zeitgeist, 2012

gumtree.com.au/dealers 1300 137 304

By BARRY PARKAN ASPIRING German politician has called on Opel workers to throw their support behind Holden’s workforce and fight cost-cutting wage deals.

Achim Heppding, a candidate for the far-left-wing Socialist Equality Party for the Hesse state legislature in this month’s German elections, has warned Opel workers that the German government, led by Angela Merkel, was “softening up the working class for attacks by the corporations”.

“I appeal to all Opel workers and to workers throughout the European car industry: contact your GM colleagues in Australia and organise a common struggle,” Mr Heppding wrote on the World Socialist website last week.

“Global corporations such as GM fight ruthlessly for market share and profits at the expense of the workers,” he said.

FULL STORY: CLICK HERE

Opel workers urged tojoin Holden struggle

Gas industry lobbies for change on eve of election

Fresh LPG plea

By IAN PORTERTHE automotive LPG industry has made a late entry into the 2013 election by launching a campaign urging the federal government to do more to encourage a switch from liquid transport fuels to gas.

The industry’s peak retail body, Gas Energy Australia, has created a dedicated website ‘Election Hub 2013’ and is encouraging the 9000 employees of its member companies to pepper the email accounts of their local MPs with preformed letters urging a change in policy.

GEA chief executive Mike Carmody told GoAuto that the association wants the government to freeze the excise on LPG (currently at 7.5c a litre but rising in stages to 12.5c a litre by 2015), link assistance to the automotive industry to the promotion of LPG-powered cars

and to exclude LPG vehicles from the recent tightening of regulations around the fringe benefits tax.

“It just makes sense,” Mr Carmody said.The proposed legislative changes

were not designed simply to benefit the gas industry, he said, but to benefit the whole country.

The industry argues that Australia would be better off if it used more liquefied petroleum gas (LPG), compressed natural gas (CNG) and liquefied natural gas (LNG).

“Using indigenous fuels will improve the country’s energy security,” Mr Carmody said.

According to GEA, replacing expensive imported oil with locally produced gas would also take a heavy burden off the country’s balance of payments.

FULL STORY: CLICK HERE

Mike Carmody

Russelsheim production

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British luxury car brand prepares to show radicalSUV concept in Frankfurt

Jaguar heads bush

Tough little Niro concept points to Kia’s potential move into urban SUV segmentBy MIKE COSTELLO

KIA has revealed images of a new concept car that in all likelihood previews its first entry into the booming urban SUV segment, home to the Nissan Juke, Holden Trax and Ford EcoSport.

Called the Niro, the concept will make its world premiere at next week’s Frankfurt motor show: appropriate given it was penned a few hundred metres down the road at Kia’s European studio under

the direction of Gregory Guillaume. Remove the outlandish concept

details such as the ‘butterfly’ doors and oversized wheels and you get a high-

riding silhouette with hints of Kia’s Rio hatch – a car that would likely donate many of its underpinnings to a production Niro.

The concept sports the familiar ‘Tiger Nose’ grille developed by Kia president (and Kia/Hyundai design boss) Peter Schreyer, prominent side scallops, triangular head- and tail-lights and contrasting roof and pillars.

FULL STORY: CLICK HERE

By BARRY PARK and TIM NICHOLSON

JAGUAR has issued a teaser image that confirms it will use next week’s Frankfurt motor show to unveil a concept previewing its first SUV.

Dubbed the C-X17, the ‘design study’ introduces the British luxury brand’s new modular all-aluminium platform that will underpin its next generation of vehicles, starting with the high-riding SUV.

The simple render looking at the rear of the concept features a curved, shapely SUV profile finishing in a tailgate-mounted spoiler that alludes to the jacked-up Jag having more sporty aspirations than off-roading.

A highlight is a wrap-around tail-light, offset with the leaping cat stretched out above a more stylised-looking ‘Jaguar’ spelt out in individual letters across the rear.

The all-new Jaguar SUV has been spotted in the real world, although the images of the heavily disguised car show XF-style tail-lights above a pair of exhaust pipes cut into the lower diffuser.

Expected to go on sale in 2015, the SUV will use Jaguar’s newly developed supercharged 3.0-litre V6 petrol engine under the bonnet, and is also expected

to use the twin-turbocharged 2.2-litre and 3.0-litre V6 diesel units.

The vehicle is also expected to offer both all-wheel-drive and front-drive versions once the production car rolls into showrooms.

Spy shots of a production mule hit the web last week, but failed to reveal much thanks to its heavily camouflaged XF body, but the raised ride height gave away its SUV underpinnings.

FULL STORY: CLICK HEREExtra value for XJ – page 21

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ZF develops world-firstregenerative suspension

By DANIEL GARDNERGLOBAL suspension and drivetrain specialist ZF has joined forces with Levant Power to develop what it claims is the world’s first regenerative active suspension system.

The so-called GenShock system can recover energy from the movement of a vehicle’s suspension system, which would normally be wasted by conventional systems, thereby saving energy and improving fuel efficiency.

Active suspension is not new to vehicle technology, but existing systems consume energy when operating the integral actuators and pumps necessary to alter chassis settings.

In addition to the various consumers in an active suspension layout, the energy required to move the suspension during normal driving is converted to heat by dampers and lost to the surrounding air in much the same way a brake disc disposes of energy.

ZF claims that by replacing the four conventional dampers with a central hydraulic system, the GenShock system not only offers all the advantages of an active system but also reclaims energy.

Under certain circumstances a hydraulic pump alters the damper conditions for optimum handling characteristics, but at other times the pump behaves in reverse – as a generator – and recovers energy from the moving suspension.

FULL STORY: CLICK HERE

Self-drive move

Nissan to have self-driving cars on the road by 2020By TIM NICHOLSON

FUTURE Nissan models will be able to drive themselves, with Nissan confirming it is developing autonomous driving technology to be ready by 2020.

The Japanese car-maker revealed last week that it would have “multiple, commercially viable” vehicles with its ‘Autonomous Drive’ system ready for the market by 2020.

Nissan confirmed in a statement that it has been working on the Autonomous Drive technology for years, in collaboration with a number of the world’s top universities.

The company’s engineers have been working with researchers from a total of 23 institutions, including Stanford, MIT, Carnegie Mellon, UC Berkley and the University of Tokyo.

Nissan will test the technology on a dedicated autonomous driving proving ground that is currently being built in Japan, featuring real elements of a townscape with bricks and mortar, rather than wooden or plastic mock-ups.

The company said this is the best possible way to push the limits of the technology safely, before testing the vehicle on public roads.

The Autonomous Drive system will be achieved at “realistic prices for consumers”, according to Nissan, and the goal is to roll the technology out across its entire model range within “two vehicle generations”, meaning anywhere between 10 and 15 years.

Nissan’s global CEO Carlos Ghosn confirmed the company’s ambitious target for rollout of the technology at its Nissan 360 event in Southern California last week.

“Nissan Motor Company’s willingness to question conventional thinking and to drive progress is what sets us apart,” he said. “In 2007 I pledged that, by 2010, Nissan would mass market a zero-emission vehicle.”

FULL STORY: CLICK HERE

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Working together for a sustainable futureThe 2013 AADA National Dealer ConventionSurfers Paradise Marriott Resort & Spa • 11-13 September 2013

What did one dealer principal say to the other?Nothing.It takes a serious lubricant to keep things running smoothly at the AADA Convention and we’re a proud sponsor of the Friday morning ‘Fuchs Lubricants Breakfast’.Fuchs, the world’s largest independent lubricant supplier with global headquarters in Germany, has developed and manufactured technologically advanced lubricants in Australia for over 75 years.

Sleek two-door show cardraws on P1800 heritage,displays design direction

Volvo coupe concept

NEXT XC90 LIGHTS UPVOLVO has teased its next-generation XC90 SUV, presenting a design that features similar elements to the sexy Concept Coupe that was revealed last week.

The Swedish car-maker displayed a series of sketches of an XC90 concept during a presentation by Volvo design chief Thomas Ingenlath when showing off the striking Concept Coupe that highlights the company’s future design direction.

FULL STORY: CLICK HERE

By TIM NICHOLSONTHE lovely, long, alluring bonnet is about to make a comeback at Volvo.

The Swedish car-maker last week released the first official images of the car that will steer its future design direction, the Concept Coupe – the first in a series of three concepts the company plans to unveil.

Featuring a wide, low facia with supercar-like aerofoil designs leading into a long, raked bonnet, the big-haunched plug-in hybrid coupe looks just like the car its name, teased with three indistinct images in the days leading up to its unveiling, alluded to.

As anticipated, the design harks back to the iconic 1960s-era P1800 sports coupe that featured in the British television series, The Saint.

Volvo says the sleek concept points to its future design language, with the second-generation XC90 SUV due next year the first production vehicle to feature the new styling direction.

Volvo said the Concept Coupe was the first car to highlight the capabilities and design possibilities of its new scalable product architecture (SPA) that

will underpin future models.The concept is the first piece of work

from Volvo’s senior vice-president of design, Thomas Ingenlath, who was charged with reshaping the Swedish car-maker’s looks in July last year.

Mr Ingenlath said it would be a mistake to label the design retrospective, as it pointed to Volvo’s future.

“The P1800 is an iconic Volvo, renowned for its beautiful forms and detailing,” he said.

“However, using elements from the P1800 exterior and interior has nothing to do with being retro. We are using these subtle links to a glorious past to create a future where sheer beauty becomes a recognised part of Volvo’s identity.”

FULL STORY: CLICK HEREV40 crosses over – next page

Feb

er.s

e

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Volvo’s high-riding V40 Cross Country arrives in town, priced from $48K

V40 crosses over

By BARRY PARKSWEDISH car-maker Volvo has dipped a toe in the compact SUV segment, launching a luxury-laden version of the V40 that, under the surface, is much more at home in the city than the country.

The V40 Cross Country, as the model is known, continues Volvo’s trend of driving a wedge between its line-up, featuring city-friendly cars alongside a range of products promising a much more adventurous lifestyle than the owner is ever likely to take up.

It is also the first Volvo-badged car to position itself against BMW’s similarly priced X1 compact soft-roader, and even Audi’s Q3.

“Volvo is undergoing a rapid change in its model line-up and the V40 Cross Country is the latest addition,” said Volvo Car Australia managing director Matt Braid.

“Where the Volvo XC models happily

flex their muscles, the V40 Cross Country boasts a sleek ruggedness with unique features integrated into the stylish Scandinavian design.”

Volvo has limited choices on the Belgian-built hatchback to two five-cylinder engines and a single ‘Luxury’ specification.

At $47,990 plus on-road costs for the front-wheel-drive diesel-engined D4 and $52,990 for the all-wheel-drive petrol, the car will command a $2000 premium over the equivalent diesel version of the V40 five-door hatchback on which it is based, and a $3000 premium over the petrol version.

However, it is backed up with a

long list of options, including a $5000 ‘Driver Support’ bundle that about half of V40 owners currently take up.

It adds some of Volvo’s key safety technologies, including adaptive cruise control, a blind-spot monitor, a carpark warning system

that stops the driver backing out into oncoming traffic, and a collision warning system.

The diesel version features a 2.0-litre five-cylinder turbo-diesel engine producing 130kW of power to the front wheels via a six-speed automatic gearbox, and 400Nm of torque between a fairly narrow 1750-2750rpm.

Continued next page

PRICING:D4 Luxury (a) $47,990 T5 AWD (a) $52,990

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V40 crosses overContinued from previous page

Fuel economy is an official combined 5.3L/100km helped by an idle-stop system that switches the engine off while the Cross Country is stopped, while emissions are capped at 139 grams of carbon dioxide per kilometre.

The 2.5-litre petrol version also has the odd cylinder count, however it produces a more rorty 187kW, and 360Nm of torque sent to all four wheels. Fuel consumption is officially 8.4L/100km, with CO2 emissions of 198g/km. The all-wheel-drive system – similar to the fifth-generation system that underpins the larger XC60 – adds 0.3L/100km over the front-drive V40 using the same engine.

For the money, V40 Cross Country owners buy into a lifestyle car boasting rugged, off-roader looks and a raised height – the Cross Country sits 20mm

higher than the V40, although ride height is only marginally higher at 120mm thanks to its beefed-up suspension – that makes it a bit more comfortable to drop into a seat.

The V40 Cross Country also features a more advanced version of Volvo’s City Safety automatic braking system that can now recognise the car in front, pedestrians and even cyclists that step out in front of the vehicle.

Volvo’s V40 Cross Country will also now automatically jump onto the brakes at speeds of up to 50km/h – previous versions work up to only 30km/h – helping drivers either completely avoid or minimise a collision.

The car-maker has attempted to

make the V40 Cross Country stand out from its donor car. This includes wrap-around black plastic bodywork that gives the impression the car sits higher off the ground than it does, black wing mirror housings, unique blackened 18-inch alloy wheels, a differently styled honeycomb grille and vertical LED daytime running lights.

The words ‘Cross Country’ run across the tailgate.

It also has silver-look scuff plates inserted into the front and rear bumpers, dark window frames, and the height-bolstering aluminium roof rails.

FULL STORY: CLICK HEREDRIVE IMPRESSIONS: CLICK HERE

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Te lephone: (02) 9957 4182Emai l : aust ra l ia@cour land .com

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Japanese luxury brandresponds to slow saleswith cuts across range

Infiniti slashes prices

By MIKE COSTELLOJAPANESE luxury-car newcomer Infiniti has slashed pricing across its entire range, 12 months after its Australian relaunch last September.

In a clear bid to shake up modest early sales, the Nissan-owned company has lopped up to $10,000 from its FX soft-roader, as much as $11,500 from the M-series sedan and up to $13,100 from its G37 two-door coupe and convertible line-up.

As an extra incentive, Infiniti will also waive all on-road costs for those who buy one of its cars in September – an additional saving of thousands.

The major repositioning of the company’s product is part of what it calls an “expansion phase” in its Australian rollout. The company claims the decision to drop pricing was a recent one.

The price cuts will no doubt drive bigger volumes in tandem with new arrivals such as the Q50 sedan late this

year (or early in 2014) and an expansion of its current three-site east-coast dealer network into both South Australia and Western Australia.

Next year will also see the arrival of the Q30 small car, which shares much of its mechanicals with global joint- venture partner Mercedes-Benz. That car will appear for the first time globally at the Frankfurt motor show next week.

Only 170 Infinitis have been registered so far this year, a fraction of what Lexus, Audi, BMW and Mercedes-Benz have posted.

Infiniti Australia corporate communications manager Peter Fadeyev admits this figure is low, but insists the company remains more concerned about building for the longer-term. GoAuto understands the company has plans in place well beyond 2016/17 already.

“We would like to have sold more cars ... but our focus is on the long-term in terms of our product and dealer rollout,” Mr Fadeyev said.

FULL STORY, PRICING: CLICK HERENew Infiniti sales chief – page 24

FX (front) and M sedan

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gumtree.com.au/dealers 1300 137 304

Where the buyers are...Find out why we’re Australia’s #1 most searched brand on Google.Google Zeitgeist, 2012

The waiting list is long, but new $75K Mercedes A45 AMG hot hatch is worth itBy MIKE COSTELLO

THE current most powerful four-cylinder car on the road, Mercedes-Benz’s A45 AMG hatch, has touched down in Australia with a starting price of $74,990 plus on-road costs and a waiting list already six months long.

Remarkably, Australia is expected to be the third biggest market in the world for the car. Mercedes’ local arm will get its hands on between 250 and 350 A45s by December, with a greater allocation earmarked for 2014.

The popularity of AMG models Down Under gives Mercedes-Benz Australia/Pacific some clout with its global parent, with the company projecting a bigger chunk of the global allocation should be freed up for Australia in 2014.

The supply issue is not limited to the A45 AMG either, with the regular A-Class still commanding a waiting list, albeit one that has reduced in recent months. It was six months at its peak, but this has come down to as little as three weeks: provided you steer clear of

obscure options and colours. The forthcoming CLA (essentially a

sedan version of the A-Class) and GLA (a small SUV on the same platform again) are both expected to command similar wait times when they launch here in October 2013 and April 2014 respectively.

Australia is presently the top AMG market globally on a proportional basis – that is, the ratio of AMG variants sold here compared to regular Benz versions. This, the smallest AMG-tuned model, is pitched at a younger crowd, with the brand hoping to lure a predominately male audience aged between 30 and 45.

Reflecting the performance ‘bent’ of

local A-Class buyers, around half of all sales so far – precluding early A45 orders – have comprised the hot A250 turbo, until now the range flagship.

Despite its initial popularity, supply will likely stop the A45 from overtaking the sales of its bigger C63 cousin, 750 units of which were sold here in 2012.

The Euro 6-compliant, hand-finished 2.0-litre twin-scroll turbo engine (a Benz first) under the snub bonnet produces a stratospheric 265kW of power at 6000rpm and 450Nm of torque between 2250 and 5000rpm – enough for a zero-to-100km/h sprint time of just 4.6 seconds and bragging rights over its arch-rival, the 5.1-second BMW M135i.

For the mechanically minded, the A45’s engine includes spray-guided direct petrol injection via piezo injectors positioned centrally in the four combustion chambers with an injection pressure of 200 bar. Maximum turbo charge pressure is 1.8 bar.

Continued next page

Worth the wait

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Worth the waitContinued from previous page

Other features include a sandcast all-aluminium crankcase, weight-optimised crank assembly with forged steel crankshaft and forged pistons with friction-optimised piston rings, air-to-water intercooler, alternator management and idle-stop.

All Australian A45s come standard with a raised electronic speed limiter that does not cut in until 270km/h. Despite our low speed limits, Benz says most buyers would have ticked the options box for this feature, so it became standardised.

Power is sent to all four wheels via a seven-speed dual-clutch automatic transmission with paddle shifters. The front-biased 4Matic all-wheel-drive system sends up to 50 per cent of torque to the (aluminium) rear axle if needed.

There are three driving modes that adjust pedal travel, engine note and gearshift times: comfort, sport and manual.

The German brand designed the A-Class’ modular platform to accommodate AWD from the get-go, and the four-paw system under the A45 is said to be 25 per cent lighter than rivals.

Reining all 1550kg of kerb weight in are 350mm front and 330mm rear ventilated discs with standard red callipers.

Mercedes claims fuel consumption of just 6.9 litres per 100km on the combined cycle – if you can keep your lead foot away from the throttle.

Despite having half the cylinders of its AMG brethren, Mercedes claims to have retained the signature throaty exhaust

note found on models such as the C63 thanks to a sports exhaust system that adjusts output depending on driving style.

Suspension, electro-mechanical speed-sensitive power steering and the high-performance brakes have also been fettled by AMG.

The king of the A-Class range is differentiated externally from its more humble siblings by its aggressive front and rear diffusers, side sills, AMG ‘twin-blade’ radiator grille, matte grey front apron, black 19-inch alloy wheels, square chrome-tipped exhaust pipes and ‘Turbo AMG’ lettering.

Inside the cabin are new additions including Artico artificial leather racing-style seats, a new multi-function, flat-bottomed (and topped) steering wheel with paddles, carbon fibre-look dash trim, red highlights on the seats, seatbelts and vents, and a central multimedia display with race-timer.

Australian-delivered A45s will

come with a higher level of standard equipment than in Europe, including the rorty AMG sports exhaust and the AMG Driver’s Package that increases top speed to 270km/h.

Further Aussie additions comprise adaptive cruise control, blind-spot monitoring, lane departure warning, adaptive headlights, a panoramic sunroof, heated leather seats and top-spec Comand infotainment system with satellite navigation, internet access and Harman Kardon premium audio.

The options list only extends to three items: $4990 black alloy wheels, a $1990 aero package with front ‘flics’ (bits that hang off the front bumper), a large rear wing and a bigger front splitter, and a $1990 AMG performance suspension pack that adds an extra 40kg of downforce at 250km/h.

DRIVE IMPRESSIONS: CLICK HEREMore reports – next page

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Mercedes turns to Vianoas its star people-mover

By BARRY PARKTHE only people-mover counted among Mercedes-Benz’s passenger car line-up is about to get a facelift to help fill the void left after the loss of the R-Class.

The German luxury car-maker has axed the slow-selling, $90,000-plus R-Class from Australian showrooms, leaving a big hole in the high-priced, richly equipped luxury people-mover end of the Australian market.

Mercedes-Benz Vans general manager Diane Tarr said the car-maker was set to launch a limited edition of its Viano commercial van-based people-mover that would help it fill the important niche gap in the showroom.

In time, she said, the limited-edition Viano would become the baseline for a facelifted version of the van.

“We are about to launch a limited edition, a special edition that has additional specifications built into the Viano that will become standard,” she said at a meeting in Sydney late last month with global sales and marketing head of Mercedes-Benz’s van division, Klaus Maier.

“It’s more of a chrome pack, a new grille, a little bit more aggressive looks in terms of styling.”

FULL STORY: CLICK HERE

A-Class soother

Supplies improve for hot-demand non-AMG modelsBy MIKE COSTELLO

MERCEDES-BENZ Australia admits supply shortfalls have stopped strong A-Class sales from being even stronger, but says the days of six-month wait times on non-AMG versions are over.

The brand’s smallest model has proven to be among its most popular since hitting local showrooms in late February, with its sub-$36,000 starting price pitching it as much at the likes of Volkswagen’s less-premium Golf as its BMW 1 Series and Audi A3 arch-rivals.

Its 1636 sales to the end of July outstrips both the BMW and the Audi, and since its launch it has been Australia’s top-selling premium small car, averaging about 300 sales per month.

But in some ways the car has been a victim of its own success, with local stock failing to keep up with voracious early demand from younger, frequently first-time Benz buyers attracted to the unique styling and comparatively affordable starting price.

The result was a reported six-month waiting list on most variants. However,

a combination of increased capacity at Mercedes’ European factories (ours come from Germany, but they are also made in Finland and Hungary) and adjusted global distribution is easing the strain.

(It’s) a combination of both,” said Mercedes-Benz Australia/Pacific general manager of passenger sales Richard Emery, adding that the local market’s disproportionate number of profitable AMG sales has given the company added clout to get extra build approved by headquarters.

“I think they built extra capacity in their factories because the car’s been quite successful globally, but also … there are places in Europe that are nowhere near where they thought they were going to be, so places like Spain they might have said initially they were going to do 10,000 A-Classes, but they go back to 8000 and there’s 2000 spare all of a sudden.”

FULL STORY: CLICK HEREMercedes on the job – page 22

A200

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Ford Australia set for strong demand in showrooms as Fiesta ST hatch storms in

Love at first drive

By BYRON MATHIOUDAKISFORD says it is prepared for an avalanche of orders if the new Fiesta ST hot hatch proves to be a bigger-than-anticipated hit in Australia, with ready access to extra stock if needed.

This is despite admitting that – for the time being at least – only 100 vehicles are arriving in local dealerships this year.

On sale from September 1 from an incredibly sharp $25,990 plus on-road costs, the high-performance B-segment three-door hatch has already sold out its first-year allocation in the United Kingdom within three months of launching.

To help meet the growing number of orders (stretching well beyond three months in some markets), Ford of Europe announced last month that it would boost Fiesta ST production by 15 per cent, to 60 vehicles per day, at the company’s Cologne factory in Germany.

“We are good for supply,” said

Ford Australia brand communications manager Neil McDonald at the upgraded Fiesta launch in Melbourne last week.

“Production has already ramped up in Europe to cope with the car’s popularity, so we don’t see an issue with getting stock at any time soon.”

The long-anticipated replacement for the well-received WQ-series Fiesta XR4, which was discontinued at the end of 2008, the WZ-series ST (for Sport Technologies) is the only European-sourced model in the facelifted range – for now.

Compared to its Thai-built brethren,

the newcomer looks, feels and drives differently, benefiting from a comprehensive makeover from Ford Team RS, the Blue Oval department that has also developed the Focus ST as well as the lauded Mk2 Focus RS and XR5 Turbo, among other models.

The changes include torque vectoring control that applies the brakes to the inside front wheel when cornering for improved handling, a new three-mode electronic stability control system including partial-off or full-off choices, a modified front steering knuckle, altered rear torsion beam suspension components, unique springs and dampers front and rear, and the inclusion of rear discs as part of a beefed-up braking set-up with a larger master cylinder.

Though still electronically powered, the rack and pinion steering employs a sharper 13.69:1 ratio and shorter arms for better response and feedback.

Continued next page

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Love at first driveContinued from previous page

Falling under the new ‘MyKey’ system, the 220km/h-plus ST is the first Ford vehicle in Australia with an owner-programmable electronic speed and audio volume limiter (among other safeguards) designed to provide parental restriction of the vehicle. For instance, top speed can be capped at 140km/h.

A separate feature is Emergency Assistance that uses a Bluetooth-connected phone to call ‘000’ in the event of an impact involving airbag deployment or electronic fuel cut-off.

Brandishing its own front-end styling that includes a honeycomb grille, LED daytime running lights, unique bumpers and foglights, the 1197kg ST sits 15mm lower to the ground on Bridgestone Potenza 205/40-section tyres wrapped around 17-inch alloy wheels. (A space-saver spare wheel is used.)

A bodykit, rear spoiler and dual chrome exhaust pipes complete the visuals.

The ST introduces a forced-induction petrol engine to the series for the first time – a Euro 5 emissions-rated 1.6-litre twin-cam direct-injection turbocharged four-cylinder EcoBoost unit delivering 132kW of power at 5750rpm and 240Nm of torque between 1500 and 5000rpm.

An overboost function increases

those outputs to 147kW and 290Nm for a brief period (20 seconds), channelled to the front wheels via a six-speed manual gearbox calibrated especially for its pocket-rocket role.

No Australian-spec performance figures are published, but in Europe the same vehicle reaches 100km/h from standstill in 6.4 seconds.

On the flipside, the official average combined-cycle fuel consumption figure is 6.2 litres per 100 kilometres, for a carbon dioxide emissions rating of 145 grams per kilometre. Figures are run on 95 RON premium unleaded.

No automatic transmission is available, putting the ST in an increasingly exclusive club (alongside the 147kW/275Nm Peugeot 208

GTi) now that the 132kW/250Nm Polo and Fabia, as well as next year’s 140kW/240Nm Clio IV RS are going it alone with a dual-clutch automatic gearbox.

Ford says the Fiesta ST accumulated 7500km of actual racetrack testing – and 5000km of high-speed testing – on top of the WZ range’s 850,000km of durability testing.

Being a German rather than Thai-built Fiesta (which shares more components with the existing Mazda2), the ST offers a soft-touch dash panel and a tilt/telescopic steering column.

FULL STORY: CLICK HEREDRIVE IMPRESSIONS: CLICK HEREHot ST tuning packs – next page

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Mountune go-faster kits a hot prospect for AussieFord Focus and Fiesta ST

Hot ST tuning packs

By BYRON MATHIOUDAKISFORD Australia is set to offer a performance upgrade for its new Sport Technologies hot-hatch duo, the ST-branded Focus and Fiesta.

The company is currently negotiating pricing, warranty and fitment details with British-based specialist Mountune, which builds officially sanctioned performance and handling kits specifically for the Focus ST and its Fiesta counterpart overseas.

While Australian details, including timing, are still to be finalised, GoAuto understands that the Ford dealer-fitted accessories would add up to a 10 per cent premium over the standard cars.

That would put the just-released $25,990 Fiesta ST close to $30,000 and the $38,590 Focus ST beyond the

$40,000 mark.For the money, the mechanical

upgrade will bring more power and quicker acceleration, with the recently released £1225 ($A2122) Focus ST package in the UK pushing maximum power and torque out to 202kW/400Nm and reducing the 0-100km/h acceleration time to 5.95 seconds.

That makes it more than half a second quicker to the national speed limit than the regular Focus ST, while in-gear acceleration also improves. For example, fourth gear acceleration from 50-100km/h drops by no less than eight-tenths, to 4.9s.

The latest Mountune pack for the British-market Fiesta ST, meanwhile, lowers the chassis further, increases power and torque to 158kW/320Nm and enables 0-100km/h acceleration in 6.7 seconds – two-tenths quicker than the factory model. The upgrade costs £599 ($1037) in the UK.

According to Ford Australia brand communications manager Neil McDonald, both Ford and Mountune have a strong interest in offering the upgrade packages here.

FULL STORY: CLICK HERE Ford refines Fiesta range – next page

Ford S-Max concept set for show debut but Australia looks to be sitting on the EdgeBy TERRY MARTIN

FORD has unveiled a near-production version of its new-generation S-Max people-mover ahead of its debut at the Frankfurt motor show next week.

Due on sale in Europe next year, the S-Max is not on Ford Australia’s agenda, despite the company’s increased emphasis on global models as it prepares to close its manufacturing operations in 2016 and discontinue its locally built family cars, including the Territory SUV.

A replacement for Territory is expected to come from another fully redesigned

model such as the forthcoming US-developed Edge mid-size crossover, which will be built off the same platform as the S-Max ‘sports activity vehicle’ but will carry SUV (rather than SAV) overtones that Australian buyers generally find more appealing.

Brandishing the Blue Oval’s new corporate look, dominated by a large

gaping grille, the S-Max concept maintains the current model’s sporty-but-practical orientation and builds in new safety and convenience technology.

The familiar Sync and MyFord Touch connectivity systems are onboard, but Ford has added some unique touches that demonstrate the potential of its new technology, such as an ECG (electrocardiogram) heart rate monitoring seat that is ready to dial ‘000’ in case of emergency.

FULL STORY: CLICK HERE

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Fresh styling and extra kitfor Blue Oval brand’s lighthatch as diesel disappears

Ford refines Fiesta range

By BYRON MATHIOUDAKISFORD expects its facelifted Fiesta to gain a bigger slice of the hotly contested light-car segment after stock shortages over recent months have seen sales slide by almost 20 per cent.

With fresh styling, more features and the international high-flying ST performance model all poised to attract new customers to dealers after sales commenced last weekend, the Blue Oval bosses hope the WZ-series revamp will edge the Fiesta back past the record 12,000 unit mark achieved in 2011.

This is despite the demise of the TDCi diesel version, which – after starting strongly to account for up to 10 per cent of total Fiesta volume two years ago – failed to realise its potential due to a period of stable fuel prices in more recent times, slipping to just four per cent of sales.

Speaking to GoAuto at the latest Fiesta’s launch in Melbourne last week, senior product marketing specialist Justin Stefani believes the Thai-built Ford strikes the right balance between cost and content.

The adoption of Ford’s much-trumpeted Sync audio, phone and media connectivity system in particular should help the Fiesta lure a higher proportion of younger buyers

– despite prices rising slightly at the lower end of the model line-up.

“We’ve made sure the car is extremely competitively specified and priced, with features that customers tell us they are looking for, so we hope it grows the

market,” Mr Stefani said. “Plus, the ST halo effect will throw more light on the regular Fiesta brand.”

ST aside, Ford predicts the newly renamed Ambiente to take over from the old WT Fiesta CL

base model and account for about 40 per cent of overall volume, followed by the Trend (formerly LX) and Sport (previously Zetec) taking around 30 per cent apiece.

The Sport, in particular, has a chance to boost numbers compared with the preceding Zetec when sales start in December, since its award-winning 1.0-litre three-cylinder turbo-petrol EcoBoost engine achieves broadly

similar average fuel consumption figures as the outgoing diesel.

While the latter’s 4.9L/100km is not quite as good as the LX TDCi’s 4.4L/100km result, light-car buyers seeking frugality will have more choice since the Sport will be available with the automatic transmission option that eluded – and consequently held back – the Fiesta diesel in Australia.

“The diesel market has contracted in the B-segment, and with the Sport offering similar economy at a cheaper price, it is a win-win situation for Fiesta customers,” Mr Stefani said.

Unlike the ST three-door hatch, which is built in Germany, the Ambiente, Trend and Sport are all five-door models sourced out of Thailand, and share some underbody components with the existing Mazda2.

All share the new trapezoidal grille, bumpers headlights, bonnet, tail-lights and wheel designs.

FULL STORY: CLICK HEREDRIVE IMPRESSIONS: CLICK HERE

PRICING:Ambiente $15,825 Ambiente (a) $17,825 Trend $17,825 Trend (a) $19,825 Sport 1.0 EcoBoost $20,525 Sport 1.0 EcoBoost (a) $22,525 ST $25,990

Ambiente

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GoAuto NewsJohn Mellor’s

AustrAliAn-owned and a market leader in their field, this company enjoys a national footprint and has a unique capability, market and end product. Due to continued growth they are now seeking to appoint a self-motivated Account Manager to their northern suburbs team. Whilst they have an enviable list of current customers, there are literally thousands more to be canvassed nationally.Reporting to the Sales and Marketing Manager, your role will be to focus on developing new business across Australia as well as maintaining existing accounts. Based in Victoria, you will be responsible for developing business across the country including WA, NSW and QLD. Coordinating your own diary, this role will see you travelling interstate an average of 1-2 weeks per month while completing weekly and monthly progress reports to track your activity and performance against budget.You will be a confident, driven and experienced BDM or Account Manager who has been involved in B2B relationship development. As a sound communicator it is preferred that your background involves developing business in an industrial or automotive environment. Candidates who have undertaken any tertiary education within business will be highly regarded.If you would like to apply for this position, please send your resumé to email: [email protected] Alternatively, for a confidential discussion please contact John McGlasson on 03 9948 9499.

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Mazda to increase outputat engine factory – again

By MIKE COSTELLOSTRONG global demand for its new-generation vehicles has seen Mazda substantially increase capacity at its Hiroshima engine plant for the second time in 13 months.

The Japanese plant currently manufactures around 800,000 so-called SkyActiv-G petrol and SkyActiv-D diesel engines annually for use in models such as the Mazda2, Mazda3, Mazda6 and CX-5.

By the end of next year, Mazda wants to boost this to one million units, as it feverishly works to keep up with global demand.

Remarkably, this time last year the Hiroshima factory could only churn out 400,000 engines per annum, with the company announcing an initial investment to grow capacity to the current level in July 2012.

The news comes shortly after Mazda reported its first profit in five years – it finished $A396 million in the black for the Japanese financial year – as its heavy investment in modular, lightweight SkyActiv engines, transmissions and architecture began to pay off.

Mazda’s major investments in SkyActiv came despite years of losses, including a massive ¥108 billion ($A1.25 billion) hit for the 2012 financial year.

FULL STORY: CLICK HERE

Mazda2 boost

Mazda moves to shore up light segment leadershipBy MIKE COSTELLO

MAZDA has simplified and added extra value to its top-selling Mazda2 light-car range as part of a late-life upgrade to keep it fresh until an all-new replacement appears next year.

The starting price of $15,790 plus on-road costs stays the same, but you now get more for your money.

Entry versions are no longer called Neo, but rather Neo Sport, and pick up new 15-inch alloy wheels in place of the previous version’s steel rims with hubcaps.

Standard equipment is otherwise unchanged, extending to six airbags, air-conditioning, cruise control, steering wheel-mounted audio controls, USB input and power windows all standard features. However, there is still no Bluetooth phone or audio connectivity, unlike many rivals.

Meantime, the previous Maxx and Genki specification grades make way for

a single version called the Maxx Sport that is in fact cheaper than both, priced from $16,930 with a five-speed manual and $18,580 with a four-speed auto.

Despite undercutting the old Maxx by $760, Mazda claims to have added $1200 worth of extra value. Additions

include a ‘Genki’-style makeover with front foglights, chrome exhaust tip, trip computer, a leather-clad shifter for the manual version and a leather-wrapped steering

wheel with red stitching. Standard fare also extends to red-

stitched front seats, climate-control air-conditioning and a temperature display on the instrument cluster.

Two new colours lifted from the larger Mazda6 – Jet Black and Blue Reflex – are now available. As usual, Mazda does not charge extra for metallic or mica paint.

FULL STORY: CLICK HERE

PRICING:Neo Sport $15,790 Neo Sport (a) $17,440 Maxx Sport $16,930 Maxx Sport (a) $18,580

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GoAuto NewsJohn Mellor’s

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Candidate• Proven experience as a DP or similar in the automotive Industry• Exceptional business acumen• Strong communication and negotiation skills with outstanding

customer service• Extensive finance and sales experience

All applications are to be emailed prior to 22 September with a covering letter and resume. All applications will be treated with confidence. Each shortlisted applicant will be asked to sign a Confidentiality Agreement.Brett Fowler, Moore Stephens (Melbourne) [email protected].

Heavy Lotus connection, sports focus for Proton’sforthcoming turbo hatch

Proton preps Suprima

By DANIEL GARDNERMALAYSIAN car-maker Proton has revealed a new contender set to take on Australia’s single biggest market segment – the Preve-based small hatchback called the Suprima S.

The new model will form part of the struggling Proton brand’s current campaign to boost its sales in Australia, following the launch of the Preve sedan earlier this year, and is being billed as the first model since the Satria GTi of the 1990s with high-level handling development by Lotus Engineering.

While Proton Cars Australia previously announced that a Preve hatch would arrive by mid-2013, the company is still to confirm a launch date for Suprima.

More details will follow at a media event scheduled for later this week, but two variants are confirmed for Australia – GX and GXR – with both to be

powered by a 103kW/205Nm 1.6-litre turbocharged four-cylinder engine, driving the front wheels through either a six-speed manual or seven-speed CVT automatic gearbox.

Significantly, Proton says the Suprima will be better equipped than any previous model it has sold in Australia, with standard features across the range expected to include an Android-based information and entertainment system (incorporating a seven-inch touchscreen), a hill-holder, daytime running lights and park-assist technology with front and rear sensors.

Key safety equipment includes six airbags, electronic stability/traction control and ABS brakes, while the Previa’s five-star crash-test rating from the independent ANCAP authority also bodes well for the related Suprima.

The top-spec GXR version will be fitted with 17-inch alloy wheels, leather seats, push-button start, cruise control and, on the CVT model, paddle-shift gear selectors.

The Suprima will benefit from Proton’s recently introduced ‘5 Star Program’, which includes five years of warranty, roadside assistance and capped-price servicing.

Pricing is yet to be announced but is likely to be slightly upstream of the recently discounted Previa, which starts from $15,990 driveaway and relies on a normally aspirated 80kW/160Nm version of the 1.6-litre engine.

The turbocharged engine was previously slated for the Preve sedan as well, but this is still to be confirmed.

FULL STORY: CLICK HERE

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Our successful Automotive Group is now expanding in Melbourne’s Eastern Suburbs and requires the services of two key personnel to lead and develop the business.

This is a fantastic opportunity for candidates with the appropriate experience to join a dynamic and progressive Dealership-focused

management team.

Peugeot and Citroen DS to head upstream as ‘C’cars to target lower end

Citroen brand to shift

Peugeot’s 208 Hybrid FE consumes just 2.1L/100kmBy TIM NICHOLSON

PEUGEOT has previewed its lightweight, lean-sipping 208 Hybrid FE concept – capable of combined-cycle fuel consumption of just 2.1 litres per 100 kilometres – ahead of an official unveiling at the Frankfurt motor show next week.

The petrol-electric concept is based on a European-spec 1.0-litre 208 VTi hatch, and images reveal it has developed significantly from the shell that was used to showcase the vehicle’s technology at the Geneva motor show earlier this year.

Styling changes from the standard 208 donor car are mostly focused on the rear end, with darkened tail-lights and a sharper, cut-off look for the redesigned tailgate, contrasting black-and-white colour scheme and a rear diffuser for improved airflow.

Peugeot has further improved the aerodynamics of the 208, with a 25 per cent reduction of the drag coefficient to 0.25Cd, which the company says is due in part to the skinny 19-inch wheels.

A number of weight-saving measures have lopped almost 200kg off the standard 208, including the use of carbon-fibre and composite body panels and a fuel tank capacity halved to 20 litres.

FULL STORY: CLICK HERE

By TIM NICHOLSONCITROEN Australia will focus heavily on its premium DS range as its parent company prepares to repurpose the next generation of its C-line cars as ‘value’ offerings.

PSA’s strategy involves pushing Peugeot into more premium territory to compete with Volkswagen and lower-end offerings from Mercedes-Benz and BMW, while maintaining Citroen’s DS sub-brand as a stylish, upmarket Euro alternative.

Citroen’s ‘C-Line’ cars, which includes the C3 light hatch, C4 small car and C5 mid-size range, are set to become lower-budget options, similar to the positioning of Skoda and Seat in the Volkswagen Group.

PSA has already split the iconic French brand’s design studio in half, with one side dedicated to DS and the other to C-Line.

Speaking to GoAuto at the recent launch of the DS3 Cabrio, Citroen Australia general manager John Startari said the realignment was part of a long-term strategic plan and

would not affect the current generation C-Line passenger cars.

“The Group doesn’t want C-Line and Peugeot range competing head-to-head,” he said. “DS is the natural premium brand and that is going to occupy space on its own and the intention, long term, is to move the C-range to more a value proposition and Peugeot to be the premium range.

“That requires more than words and pricing, that’s a whole product cycle so I can’t imagine that is going to come into place for at least two to three years.”

Mr Startari said the European strategy will not necessarily be replicated in every market, and highlighted Japanese car-makers Mazda and Subaru as examples of brands that are seen as somewhat premium in Australia but viewed as entry-level brands in other markets.

“We do have the ability to tailor, through spec and options, our own strategy in this market and the French are very supportive of that. They are definitely looking to go global and I think the European crisis has fast-tracked that, but they think local which is important.”

As previously reported, Citroen will introduce a bespoke concept for its DS line in local dealers from January 1 next year that allows buyers to build their own DS model by choosing different cabin trims, seat materials, roof designs and other options.

Mr Startari said the bespoke concept is unlikely to be impacted by the direction Citroen is heading under its new product strategy.

FULL STORY: CLICK HERE

DS5

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Porsche’s Cayman two-door coupe was a revelation when it was launched more than a decade ago. Compact, mid-engined, lithe and engaging, the tin-topped Cayman has always reversed the cheap coupe, expensive cabrio norm and commanded a price premium over its rag-top sibling, the Boxster, with which it shares much of its DNA.

Porsche Cayman

FULL STORY: CLICK HERE

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

NEW X5 FROM $99,900BMW’S third-generation X5 will cop a near-$8000 price increase over the outgoing base model when it arrives in Australian showrooms in mid-November.

The German brand’s local arm has announced the Australian line-up will mimic the European range and consist of just three variants, for now, with more to be added next year.

FULL STORY, PRICING: CLICK HERE

Major upgrade for Porsche’s Panamera oil-burnerBy TIM NICHOLSON

A DIESEL version of Porsche’s new-look Panamera will be more potent and substantially quicker than before, but will add almost $8000 to the price of the outgoing model.

The German sportscar-maker has released Australian pricing for the oil-burning four-door GT, confirming a $7900 increase from $196,700 to $204,600 when it arrives in local

showrooms in March next year.However, for the money, Panamera

buyers get a radically different car. Porsche has replaced the old powerplant with a completely new 3.0-litre V6 diesel engine, providing the four-door coupe with a substantial 37kW boost in power from 184kW to 221kW.

FULL STORY: CLICK HERE

Australian operations of Glass’s Guide up for saleBy JOHN MELLOR

AUTOMOTIVE information services provider, Glass’s Australia, widely regarded as the country’s ‘bible’ of car prices, has been officially placed on the market by its European parent, EurotaxGlass’s Limited, although it has long been an open secret that it was always available to the right buyer.

EurotaxGlass’s is selling all of the Australian operations which include new and used pricing and values services across all manner of vehicles including motorcycles, caravans and marine as well as specification and features services in both print

and electronic formats. Additionally Glass’s provides data feeds for websites including Drive, Carsguide, Trading Post, Gumtree and eBay.

Glass’s commands a market share of about 50 per cent in Australia with 90 per cent of revenue from online services. The sale includes an operation in Malaysia and new initiatives based in Bangkok and Shanghai.

Documents reveal that Glass’s Australia has a revenue growth rate of 5 per cent and projected earnings for 2013 of $2.5 million EBITDA. The sale is being handled by the global investment bank, Moelis & Company.

Diesel spice

EXTRA VALUE FOR XJJAGUAR has announced pricing for its revised XJ flagship range, headlined by a big $22,000 drop for the range-topping long-wheelbase Supersport, which now comes in at $298,000 plus on-road costs.

The change to pricing and specification comes as a part of a minor upgrade for the luxury brand’s high-end limo that includes extra comfort in the rear of the cabin and updates to in-car technology.

FULL STORY, PRICING: CLICK HERE

SPORTY KIZASHI MOVESUZUKI Australia has given the Kizashi mid-sizer a mid-life spruce-up, adding a standard sports kit to all models and introducing new driveaway pricing.

FULL STORY, PRICING: CLICK HERE

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By BARRY PARKMERCEDES-BENZ Australia has revealed it was once deep in talks with electric vehicle infrastructure provider Better Place about bringing battery-powered delivery vans to Australia.

However, the commercial vehicle arm of the luxury car-maker said further hopes of selling a range of battery-powered delivery vans had been shelved since the Israeli electric car recharging infrastructure company hit cashflow problems and wound back in Australia.

Responding to questions on why the natural gas version of the Sprinter NGT (Natural Gas Technology) was struggling in Australia, Mercedes-Benz Vans general manager Diane Tarr said it was down to a lack of infrastructure.

“We were talking very closely with Better Place in terms of trying to work a really good partnership out, and we know what happened to Better Place,” she said.

“I think in the market in Australia, the natural gas and electric vehicles are still bubbling away but not getting too much traction at the moment.”

In the meantime, Mercedes-Benz plans to expand its network of van dealers throughout Australia as the commercial arm of the luxury car-maker aims for a bigger slice of the trade market.

The move by the commercial van division is partly in response to the loss this year of a lucrative five-year Australia Post van supply and support contract to commercial van partner Renault.

The German car-maker still has a contract to support Australia Post’s existing range of Sprinter vans it uses for mail runs, although the fleet will move to Renault-badged Trafic and Master vans.

However, Volkswagen’s Transporter van range is now in Mercedes-Benz’s sights as it attempts to chase down the biggest seller of premium-badged commercial load-luggers in Australia by expanding its van dealer network.

The Transporter is outselling Vito

at the rate of almost three to one, VFACTS sales data shows.

“For us, the Vito sits in a very competitive market,” Ms Tarr said. “We have had our challenges this year, and we have had in our discussions, one of our discussions yesterday, how do we maintain our position and grow that position, particularly in a very competitive space as well?”

According to Ms Tarr, Mercedes-Benz will explore expanding its service network to passenger car showrooms and even truck service centres to help owners benefit from whole-of-life cost of ownership, not just the purchase price.

FULL STORY: CLICK HERE

No spark on EV vans butmore dealers part of planto increase market share

Mercedes on the jobVito versus Transporter sales 2008-12

Mercedes-Benz Vito

0

200

400

600

800

1000

1200

1400

1600

1800

2008 2009 2010 2011 2012

Source: VFACTS

Mercedes-Benz Vito Volkswagen Transporter

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By TIM NICHOLSONTOYOTA’S next-generation Prius will be leaner, greener, and – more importantly – cost less, the Japanese car-maker says.

At a company event in Michigan last week, Toyota Motor Corporation managing officer Satoshi Ogiso said the next generation of hybrid powertrains would be “significantly” more fuel-efficient, lighter, more compact and cheaper to buy than the current line-up.

Mr Ogiso said the next-generation Prius, rumoured to make its debut in the second quarter of 2015, will start “a new era for a broad range of Toyota and Lexus vehicles” and will be “the first to introduce a substantially improved family of hybrid powertrains”.

He said the performance of the new powertrains would “reflect significant advances in battery, electric motor and gas (petrol) engine technologies that are part of Toyota’s larger strategy towards the electrification of the automobile through hybrid, battery electric and fuel cell technologies”.

While the fuel economy for each generation of Prius has improved on the last, Mr Ogiso said Toyota was working hard to ensure the trend continued with future hybrid models.

“The challenge to continue to improve at this rate – to beat your own

record – becomes very difficult, but makes it all the more motivating. We are very motivated to beat our record,” he said.

The fourth-generation Prius will be built on the Toyota New Global Architecture (TNGA) and feature a boost in structural rigidity and a lower centre of gravity that Toyota says will improve the driving dynamics of the car.

Mr Ogiso said the electric motors in the next Prius were expected to shrink in size, but produce higher power density, while the thermal efficiency of the combustion engines would reportedly rise from 38.5 per cent to a “world best” 40 per cent.

The 2015 Prius will feature a completely redesigned exterior and Mr Ogiso confirmed it would have a more spacious interior, with significant improvements in the layout, design and ease of operation.

FULL STORY: CLICK HERE

Toyota reveals plans forfuture hybrid models ascommercial FCEV nears

Prius future even greener

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Toyota Hybrid World Tour

ELECTRIC VW GOLF, UP VOLKSWAGEN is set to show off two production-ready electric vehicles, with confirmation the e-Up and e-Golf will make their world premiere in Frankfurt next week.

The German car-maker is claiming an electric-only driving range of 190km for the e-Golf, while the smaller electrified Up can travel up to 160km before needing to be recharged.

The respective ranges compare to 199km for fellow EVs such as the updated Nissan Leaf, 150km for the Mitsubishi i-MiEV and a claimed 210km for the forthcoming Renault Zoe.

FULL STORY: CLICK HERE

e-Golf (left) and e-Up

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FERLAZZO TAKES TOP DESIGN JOB AT HOLDENBy TERRY MARTIN

HOLDEN has confirmed that Richard Ferlazzo has taken over as its design director after Andrew Smith left the Australian car-maker last month to become executive director of global Cadillac and Buick design in Detroit.

Mr Ferlazzo is responsible for “advanced, production and global contract” programs at Holden, which includes the next-generation ‘VJ’ Commodore currently in development and due for release in 2017.

He reports to Australian-

based executive director of GM International Operations Design, Mike Simcoe, and has a second

reporting line to GM Holden chairman and managing director Mike Devereux.

He also becomes a member of Holden’s senior leadership team.

“To now be leading such an experienced and dynamic team here at Holden design is a genuine privilege,” Mr

Ferlazzo said.

FULL STORY: CLICK HERE

ZAITZEV TO INFINITI AS NATIONAL SALES CHIEFBy TERRY MARTIN

INFINITI Cars Australia has appointed Andrei Zaitzev to the newly created position of national sales manager.

Mr Zaitzev, 40, moves to the Nissan-owned luxury brand from independent distributor Ateco Automotive, where he was previously responsible for Alfa Romeo and Fiat.

The two Italian brands have since moved to the factory-backed Fiat Chrysler Group Australia and, most recently, Mr Zaitzev has overseen Ateco’s commercial vehicles portfolio.

He also worked for Subaru distributor Inchcape Automotive as a regional manager, and has retail experience as a general manager for a Subaru dealership.

At Infiniti, Mr Zaitzev reports to general manager Kevin Snell, who said the company was embarking on “its next Australian market development phase”.

“Andrei’s appointment is great

news for Infiniti and is one of several milestones planned for Infiniti’s next stage in Australia,” Mr Snell said.

“Andrei brings to our team the right mix of experience and knowledge and

will focus on developing our local sales operations. His appointment has been timed according to the progressive steps we have mapped for Infiniti in this country and I’m very pleased he’s chosen to join the team.”

Infiniti has been operating in Australia for 12 months, and is currently selling three model lines – the FX SUV, M sedan and G37 coupe and convertible – through three “boutique” dealers, one each in Sydney, Melbourne and Brisbane.

The brand had sold 170 vehicles this year (to the end of July), and is working on expanding both its retail presence and model range, with the Q50 sedan next to join the range either late this year or early in 2014.

Richard Ferlazzo

TAVARES EXITS RENAULTBy TERRY MARTIN

RENAULT chief operating officer Carlos Tavares has left the company, two weeks after he was reported as saying he was interested in heading up General Motors or Ford.

The French auto giant issued a statement last Thursday that said Mr Tavares had “mutually agreed with Renault to cease as of today his functions of chief operating officer in order to pursue other personal projects”.

Effective immediately, chairman and chief executive Carlos Ghosn will temporarily carry out the duties of COO until an “adaptation” of the management’s organisation is decided.

Mr Tavares has worked for Renault for 32 years, joining the company in 1981 as a test-drive engineer and working his way up through the ranks in key engineering roles before moving into global product strategy and planning for both Renault and alliance partner Nissan.

He became executive vice-president of Nissan and joined the board of directors in 2005, subsequently spending two years as head of Nissan’s operations in the Americas (2009-11) before returning to Renault as COO and second-in-charge next to Mr Ghosn.

FULL STORY: CLICK HERE

Carlos Tavares

Andrei Zaitzev

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

Terry Martin at [email protected]

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SEPLAUNCH

FULL NEW CAR DIARY: CLICK HERE

Audi A3 1.8 quattro

Bentley Flying Spur

Mercedes-Benz E63 AMG S

Renault Clio ►

Volkswagen Golf GTI

Renault is getting serious about the Australian light-car segment with its new Clio. There’s no hot RS until 2014, but the regular five-door range will be well-priced and spec’d, and full of Euro charm.

Mitsubishi moves to keep Lancer small car fresh in face of tough competition

By TIM NICHOLSONMITSUBISHI has sharpened up the value in its Lancer small-car range to keep the ageing platform competitive amid a rash of new and updated rivals.

Pricing remains the same for the range, kicking off at $19,990 plus on-road costs for the entry-level ES hatch or sedan mated to a five-speed manual gearbox, but buyers will get open access to features once reserved for the options list.

The $19,990 kick-off price keeps the Lancer in line with newer competition, including the recently reborn Nissan Pulsar and Kia Cerato sedan, but does not undercut the Holden Cruze which at $19,490 for the Equipe sedan is $500 cheaper.

The refreshed Lancer adds new seat fabrics and keyless entry as standard on ES, while other models benefit from updated alloy wheels and a reversing camera as standard.

Mid-spec LX models add a 6.1-inch colour touchscreen and now feature a reversing camera as standard, while VRX and Ralliart models pick up a seven-inch touchscreen with sat-nav and 3D mapping.

There are no mechanical changes to the MY2014 Lancer, so ES and LX models continue to be powered by a 110kW/197Nm 2.0-litre four-cylinder

engine, matched with either a five-speed manual or CVT automatic, while the sportier VRX remains at 125kW/226Nm.

More powerful Ralliart models are powered by a 177kW/343Nm turbocharged version of the 2.0-litre engine mated to a twin-clutch sport-shift transmission.

Standard gear on the base ES in sedan and Sportback guise includes leather door inserts, power windows, revised seat trim and 16-inch alloy wheels.

The more upmarket LX starts from $23,990 plus on-roads for the manual and $26,240 for the CVT and comes with reversing sensors, chrome styling touches, leather-wrapped steering wheel, front sports seats with leather trim, heated front seats and climate-control air-conditioning as standard.

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ANOTHER ASX UPGRADEMITSUBISHI has culled models, added gear, cut fuel consumption and sharpened the prices of its city-friendly ASX SUV as a part of a range-wide shake-up.

The entry price for the ASX has fallen by $1000 to kick off from $24,990 plus on-road costs for the base two-wheel-drive model with a 2.0-litre petrol engine and five-speed manual gearbox.

FULL STORY, PRICING: CLICK HERE