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The Short Term Outlook for the Aussie Motoring Industry

Sunday, June 11th, 2006

A trip to Brisbane from Hervey Bay on a Sunday afternoon usually takes around four to five hours and even though a some of the trip is along a multi-lane highway up until recently you could expect the traffic to be heavy and moving very slowly on that multi-lane part of the trip.

Last weekend the trip took less than 3.5 hours and the traffic could not have been described as heavy at all. So has the increased cost of fuel finally hit the Australian motorist? If it has what can we expect to see in the short-term future for the Aussie motoring industry?

Already we’re seeing Mitsubishi going from bad to worse as their great white hope - the 380 sedan - turns into a great white disappointment. In fact the 380 has been such a poor seller that within a few weeks of the release of the car Mitsubishi reduced the numbers rolling off the production line and then began discounting the car to encourage sales.

Mitsubishi 380

Now the South Australian government is propping up the company by ordering over 680 of the model for the Government fleet. More than 500 of those will be delivered by the end of June.

And there is no doubt that Mitsubishi is in dire need of help; sales of their vehicles - including imported models - fell by 10% over the period from May 2005 to May 2006.

A 10% fall in sales is far above the industry as a whole. Sales for the industry as a whole are down 2.8% this year compared to last year with Holden and Ford continuing to fall behind Toyota. To the end of May sales of Toyota vehicles had reached 82,227 compared to 60,792 for Holden and 48,496 for Ford.

American Motor Vehicle Sales

Perhaps the Australian motor vehicle industry will be looking to America for some hint of what’s to come where, despite discounting and other incentives, the US manufacturers continue to fall behind the European and Asian manufacturers.

Comparing figures for May 2005 with May 2006 show that Chrysler’s sales are down 14% and Ford is down 1.9%.

Toyota continues to race ahead of the pack continually posting record sales months and May 2006 was no exception. Other companies with increased sales during May were Volkswagen Hyundai, Mitsubishi (yes in the US Mitsubishi recorded increased sales during May mainly thanks to the Galant), Audi, Mercedes, Mazda, Subaru and BMW.

The only foreign cars to buck the positive trend in the US were Volvo and Mini.

Mitsubishi Galant
The Mitsubishi Galant - popular with the American motoring public.

Over $10,000 Per Cylinder

Sunday, December 4th, 2005

HSV VRX Hatch

Yes that’s right, meet the VRX Turbo the latest hot little four to emerge from the Holden Special Vehicles’ workshops and it’s set to hit the market at a price point somewhere below $A43,000.

With a 0-100kmh speed of just a little more than 6 seconds this vehicle may not be the fastest from a standing start but it is certainly going to attract a lot of interest. The engine is a 2 litre DOHC turbocharged unit coupled to a 6 speed manual box.

The genesis of this vehicle is a Vauxhall Astra orignally tweaked by the Opel Performance Centre in Germany.

This hottie isn’t on the market just yet but could be by early 2006

Ford and Holden Duke It Out in the Small Car Market

Tuesday, November 22nd, 2005

From now till the end of December Ford and Holden are fighting over the $12,990 price point in the small car market.

Originally Holden claimed the $12,990 price point as their own with the Barina coming in right on the nose with an equipment level that included air.

Holden Barina

But from now till the end of December Ford are offering $1000 cash back on the Ford Fiesta and that brings Ford’s small car down to the level of the Barina.

Ford Fiesta

Unfortunately, if you want to ride in airconditioned comfort in a Fiesta it’s going to set you back another $2000.

The $12,990 price for the Fiesta will only hold till the end of December or when stocks run out. A slightly upgraded model is due to hit the showroom floors from January.