Australia
Kia To Get Extra Sting?
It’s not confirmed for Australia however Kia has appeared to confirm their ballsy Stinger sedan/five door coupe is to get more mumbo. Currently packing a 2.0L turbo four or the punch you in the guts 272kW/510Nm 3.3-litre twin-turbo V6 engine, it’s being spoken that the car will receive the bigger 3.5L V6 as found in siblings Hyundai and Genesis.
Inside the Genesis G80, this mill produces 279kW and 530Nm. The turbo four may also be given some fettling, with a 2.4L version said to offer 223kW and over 420Nm. That’s in comparison to the current 182kW and 353Nm. There is also a milf facelift to the exterior and it’s as yet unconfirmed if much will be done to the interior, although it’s likely there will be.
Kia Australia, however, currently have a different perspective, with the head of PR, Kevin Hepworth, being quoted as saying: “”We are not anticipating any engine changes”. In this context, an extra 200cc offering just 7kW and 20Nm means most buyers would be highly unlikely to tell the difference. Considering that the sedan market is shriveling slowly (although in Europe it is regaining ground under the onslaught of SUVs), should Kia go ahead with that and make that the only powerplant choice, it leaves Kia Australia with either onselling the Stinger with the slightly bigger engine, having Kia pare back the outputs, or, and more unlikely, have Aussie spec Stingers come here with the 3.3L and 2.0L.
Sales figures for the Stinger indicate the V6 is the preferred engine, with around 98% of the 150 to 200 Stingers moved per month being powered by that, and of those a huge 81% are for the top of the range GT. The other factor coming into play is the Australian dollar exchange rate. It’s highly likely that the 2.0L four would be dropped and the 2.4L, if offered, would not be taken up on a cost basis reason.
The FCAI Releases March 2020 Car Sales Numbers
The Federal Chamber of Automotive Industries has today announced new vehicle sales figures for the month of March 2020 and not unexpectedly, it’s a story of sliding numbers. 81,690 vehicles were sold in the 31 days of March, with a breakdown of: 21,777 passenger vehicles, 39,171 SUVs, and 18,162 LCV (Light Commercial vehicles). That’s a respective market share of 26.7%, 48.0%, and 22.2%
What these numbers also showcase is a negative growth of 17.9% compared to March 2019 and the 24th consecutive month of falling sales. On a direct comparison of days available to sell, March 2020 sees a decrease of 17,752 vehicles compared to last year, and a daily decrease of 692 per day.
Toyota takes the top spot, with the Hi-Lux notching 3,556 sales and the brand itself selling 17,583. Mazda clocked second overall at 6,002, whilst Kia overtook its Korean relation, Hyundai, with 5,654 against 5,306.
Ford’s Ranger notched 3,108 sales for the second most popular vehicle bought, followed by the RAV4 from Toyota at 2,991. The Corolla wasn’t far behind at 2,812, whilst Holden finally had some sunshine, with Colorado finding 2,391 driveways to park in.
The Chief Executive of the FCAI, Tony Weber, said: “Many dealerships have opted to remain open to maintain support for customers, particularly from a service perspective, during this difficult period. Of particular importance are first responder and essential services vehicles. We must keep these vehicles on the road to ensure our communities continue to function and remain safe. In addition, we need to ensure those who physically attend their workplace can travel safely.
The motor vehicle is a safe form of transport during the pandemic, allowing occupants to preserve their personal distance from other commuters. Within dealerships, customer safety is of the highest priority, and automotive brands have initiated a variety of enhanced hygiene protocols and contactless consultations to maintain personal distance.”
The Passenger Vehicle Market is down by 7,222 vehicle sales (-24.9%) over the same month last year; the Sports Utility Market is down by 6,489 vehicle sales (-14.2%); the Light Commercial Market is down by 3,326 vehicle sales (-15.5%); and the Heavy Commercial Vehicle Market is down by 715 vehicle sales (-21.7%) versus March 2019.
Environmental, political, and economic factors are said to be behind the continued fall in sales.
(Information supplied by the FCAI)
Do Honda’s Changes Signal the Beginning of an Australian Exit?
After Holden made the much-anticipated and expected decision to withdraw from the Australian market, attention has turned towards the rest of the industry, as it faces a growing crisis. Compounded by the Coronavirus pandemic that is spreading across the world, local car dealers were already up against it, competing in a market that has been tracking at its worst levels since the GFC.
With pressure only likely to grow in the wake of the health and economic crisis that our country now faces, more questions are being asked about how sustainable it is for manufacturers to compete in such a small yet hotly-contested market such as ours.
This has sparked a lot of speculation around which companies might be next to exit Australia. Honda has enjoyed particularly strong sales in Australia over the years, but with the company facing profitability issues at a global level, the directive has been to improve its operational efficiencies. This has convinced some industry insiders that it was likely to be a matter of time before the Japanese brand would need to respond, and respond they have.
Dealership changes
Earlier this month, Honda was said to be considering three potential options for its future down under. First, the company was understood to have the option to close its national network and exit the market. Second, the Japanese auto-maker could pursue a ‘rationalisation’ strategy and reduce the number of showrooms across the country. Finally, the company could move towards an independent distributor model.
Commenting on the speculation at the time, the company said, “Honda is committed to the Australian market and as a part of normal business, regularly assesses its operations and organisational performance. We committed to our dealer network that we would update them on our long-term plans in the first quarter of 2020 and we are planning to do this later this month”.
In recent days, the company has come to a decision. Starting from the middle of 2021, Honda will slash the number of dealerships across the country. From over 100 dealers at the moment, there are expected to be around 60 by the time the changes take place. Their owners are expected to reduce from 71 to just 12. In addition, the brand will also move to eliminate underperforming car models and adopt an “agency” style business with fixed prices across the board.
The move is set to spark a sharp cut in jobs across the Honda network, as well as a sizeable slump in sales for the brand as it focuses predominantly on the Civic small car, HR-V small SUV and CR-V medium SUV. On the back of the news, however, dealers have begun to interpret the move as the early stages of a formal Australian exit for the company. In the meantime, the official line from the manufacturer reads, “we are committed to the Australian market. This is about strengthening the business for the future”. But aren’t those familiar words we’ve heard before?
Holden On To The Memory.
February 17, 2020. It’s the day after a very successful fund raising concert for Australia’s beleaguered fire fighting services. The country is on a high. Midday and the high is replaced by a collective sense of disbelief. It’s the day that many prophesied yet even more hoped would never come.
The name, Holden, would be consigned to the bin of history.
There will be many discussions as the reason why the once near invincible powerhouse that was “Australia’s own”, the company immortalised in a jingle along with “football, meat pies, kangaroos”, finally met its end at the hands of parent company General Motors. In simple terms, there will never be just one reason, there will be many.
If Holden’s last manager, Kristian Aquilina, to be is to believed, the company didn’t go down without some sort of a fight. “In this investment cycle, we developed an ambitious investment – an investment proposal to turn around our current performance and to see Holden flourish in this market, not just survive,” Aquilina stated.
“And over a number of months, GM undertook an exhaustive analysis of that plan together with our parent company we chased down every conceivable option, every strategy, every plan… We looked under every rock.
“We have had multiple rounds of discussions and have tried to find a way to defy gravity but the hard truth was there was just no way to come up with a plan that would support a competitive, and growing and flourishing Holden – and also provide a sufficient return to our investors.” he said. GM’s International Operations vice president Julian Blissett wasn’t willing to detail the costs involved, instead settling on a package to move the remaining Holden stock and close dealerships. The estimated cost is somewhere around $1.1 billion.
The closure also, sadly, includes the fabled Lang Lang proving grounds in the western part of Victoria. It’s rumoured that transport magnate Lindsay Fox has expressed interest in investing in the site. The anger that so many are feeling is inclusive of the statement by Holden after the closure of local building that Lang Lang and its importance would stay in place.
GM has also flagged the closure of its Thailand based manufacturing facility. However, a saviour for that plant in the form of Great Wall Motors may save the plant and its employees. Should this go ahead it places Great Wall into the same manufacturing heartbeat as brands such as Toyota, Isuzu, Mitsubishi, and others.Holden’s own history has places where its innovation could, could have gone further. 
The homegrown 5.0L, the famous 308, was being worked on for an overhead camshaft design. This “mule” engine kept the standard centre of block cam, meaning it was a three cam engine, unique at the time. Concept cars such as ECOmmodore, the W427, the Crewman and its HSV sibling, the Avalanche, were all possibilities for ongoing. Our friends at Bauer Media go further, with this list of concepts.
Holden has committed to the next ten years for customer support, a statement that some, cynically, will equate to Holden’s advertising of “We’re here to stay”, when clearly they aren’t.
It’s a day, and a decision, that for many will remain as a stain on the once thriving heart of Australian automotive manufacturing.
Level 2, 9 Help Street