Category: Australia

By Edward Niedermeyer on September 17, 2009

Left Holden the bag?

The Freep has dubbed Chevy’s Next Big Small Thing a “hit” on the grounds that it’s big in Australia. The only problem? It’s not really selling all that well. Towards the bottom of its write-up, the Freep reveals that GM’s Holden division sold 4,826 of the US-bound Cruze in the last three months. Center for Automotive Research president David Cole reckons those numbers “kind of give you a clue as to what the potential could be” when the Cruze arrives stateside. If that’s true, the Cruze is a loser. Not only has Toyota sold 7,550 Cruze-class Corollas in the last two months, the Mazda3 and Hyundai i30 are also the segment’s fastest growers.

By Edward Niedermeyer on August 19, 2009

General Motors’ so-called Alpha platform has been something of an enigma since it was first conceptualized by Holden as the TT36 Torana for the 2004 Sydney Auto Show. The TT36 concept was Holden’s pitch for a sub-CTS RWD global premium sedan, although, in proper GM fashion, that job went to the late, unlamented BLS. Though fuel economy issues were said to have killed the possibility of introducing an RWD model below the CTS, the penalty wasn’t huge, making the decision to go with a Saab 9-3 rebadge all the more strange. “As a lightweight rear-wheel-drive car that is going to add about 1mpg compared to an equivalent lightweight front-wheel drive car . . . we just have to sort of wait a while and see where we are,” is how Bob Lutz explained it to Go Auto last year. More likely, GM simply had no money to develop the platform in those pre-bailout days. Now that taxpayers are footing the bill, what can we expect from Alpha?

(Read More…)

By Edward Niedermeyer on August 4, 2009

Which means importing this 415 hp, 415 lb-ft, AWD Ford FPV F6 E from Australia is a bad idea, too. Right?

By The Newspaper on July 17, 2009

Up until 2007, rural freeways in the Northern Territory, Australia had no speed limit. Claiming that speed limits were essential to saving lives, the state government imposed a 130km/h (80 MPH) limit on the Stuart, Arnhem, Victoria and Barkly highways and a 110km/h (68 MPH) speed limit on all other roads, unless otherwise marked lower. Despite the best of intentions, however, the number of road deaths actually increased 70 percent after the change — despite worldwide drop in traffic levels (view chart).

(Read More…)

By Bertel Schmitt on July 14, 2009

Up until yesterday, there were only two Ferrari Californias on Australia’s streets. The number is now down to one. Police have impounded the rare Ferrari California being driven by Financial Review motoring writer Rod Easdown. Baruthian car and driver were clocked by Australia’s finest at 231kmh, more than twice the legal limit.

(Read More…)

By Edward Niedermeyer on June 10, 2009

Bob Lutz needs to clear something up. Fun lovers, report to GM Fastlane, stat! It seems that the Man of Maximum is steamed about a WaPo piece which he complains casts him as “ambivalent” towards his beloved Volt. In fact, the piece is a sweeping look at the Volt’s place in GM, and it contains more than a few anecdotes that reflect poorly on GM management (shocking, I know). And the facts of the matter clearly illustrate that the Volt’s importance arises from political considerations far more than the inherent passion  of GM’s product planners to create reliable, fuel-efficient transportation. Hence the accusation of ambivalence. But political motivation has to be disguised with pure intention (no matter how implausible) in order to work. And so Lutz is off to man the crumbling Maximum rampart.

Lutz writes,

The reporter said that we are “ambivalent” about the Volt, largely because it flies in the face of what he perceives me to be all about, namely speed, horsepower and burning rubber – and fossil fuels. In fact, he neatly expanded this ambivalence angle to describe GM, and Detroit as a whole, as the auto industry faces a new future.

Look, I know how it works. A reporter has a great idea for a story, with a terrific angle, and, even if the facts indicate otherwise, he can’t help but try to shoehorn the story into the angle. It’s just too good an idea!

Yes, Bob Lutz knows how the media thing works. And the WaPo juxtaposes the Volt and the Camaro,

. . . type of vehicle they and their colleagues in the press insist GM is all about, the gas guzzler. Trucks, SUVs and muscle cars. They would have you believe that GM and the other American auto companies are the only manufacturers on the planet that have ever built any SUVs. They would have you believe that we are secretly bemoaning the coming of the Volt because it means the end of cars like the Camaro and the Corvette, cars they don’t think any Americans want to drive anyway.

Huh? Bob, the Post quotes you as saying,

When you get out into the marketplace, it’s probably just 5 percent of the public that desperately wants something environmentally sound and is willing to pay a premium for it. I would say the East and West Coast intellectual establishment kind of lives in its own world. When you get to the broad American marketplace, excitement is still kind of defined in the way it used to be.

If that doesn’t betray some ambivalence towards hybrid vehicles, then what does? If America doesn’t want Volt, Bob, why are you building it? Actually, the Post piece addresses this directly, explaining,

In the summer of 2008, at a forum attended by other auto executives and then-presidential candidate Barack Obama, Wagoner recalibrated his position. Under increasing pressure from government officials to demonstrate GM’s broad commitment to more fuel-efficient vehicles, the beleaguered chief executive confidently restated GM’s goal to bring out the Volt in 2010.

But that doesn’t jive with Bob’s self-image. Political lackey he is not!

How many times since the concept car’s debut in 2007 have I said (and been widely quoted as saying) that this is the most exciting program I have worked on in my entire career? I meant it every time I said it – anyone in the press who’s spent any time at all covering the auto industry knows I don’t do “lip service.”

But if this were true, Lutz wouldn’t be blustering about his deep, abiding passion for the Volt. He’d say something along the lines of “you’re damn right I’m ambivalent about it. It’s a $40k halo car that doesn’t go fast or look like sex. That doesn’t make sense to someone like me.” Instead, he demonstrates his pathos-laden (and politically corect) ambivalence towards the very car the WaPo accuses him of favoring: the Camaro:

Given the tough economic times and the high priority of fuel economy, we were almost wishing we hadn’t done the Camaro. We looked at it as something radically mistimed.

Which it is. But Lutz’s conspicuous ambivalence only shows how willing he is to reshuffle his priorities based on political considerations. If Lutz was brought into GM to provide clear-sighted leadership on product quality, he has clearly lost the independent, instinctive edge he once promised. Absent the need for a working compass of the American consumer psyche (thanks to bailout billions), Lutz has become little more than a breathless apologist for a program he clearly doesn’t think will be successful on its own merits. The curse of governmental control can already be felt at GM. What a crock of shit.

By The Newspaper on April 8, 2009

Following a ruling by the Supreme Court of Victoria, Australia, a 27-year-old will have a chance to shut down the A$4.8 billion Airport Link toll road next Tuesday. The BrisConnections toll project, built upon highly leveraged shareholder debt, fell apart as the credit crisis hit and the share price plunged to just A$.001. This allowed a young Internet entrepreneur, Nicholas Bolton, to snap up 73,100,993 shares representing eighteen percent of the company with an initial investment of just A$47,923. That cheap initial purchase price, however, came with a catch. The BrisConnections stock is a “partly paid security” that requires a A$1 per-share payment on April 29, 2009, and a second A$1 payment on January 29, 2010, for the shares to become fully paid.

(Read More…)

By Edward Niedermeyer on January 16, 2009

GoAuto hears from GM Car Czar Maximum Bob Lutz himself that the Camaro and G8 will be the last US market GM products based on Holden’s RWD Zeta platform. “The strategy we had a few years ago of basically deriving a whole sweeping global portfolio off the Australian Zeta architecture … frankly, we have had to abandon that dream,” said Lutz. “This is because, whether you are in the United States or in China, fuel economy mandates are getting more and more severe, and we just could not base our strategy on doing relatively large and relatively heavy rear-wheel-drive cars. I suspect the same thing is going to start to bite the traditional rear-wheel drive producers.” Not that they’re ditching the platform entirely. “It is our intent to continue the Australian rear-wheel-drive cars; we will continue building them and doing a next generation and so forth and so on,” says Mr Maximum. “And, to be honest, they continue to be my favourite cars. I think they are absolutely wonderful – but the regulatory environment is such that it would be imprudent to base a whole global platform strategy on them … much to my personal chagrin, by the way.” And what of the rumored Alpha compact RWD platform?

(Read More…)

By Edward Niedermeyer on January 6, 2009

Pickuptrucks.com has learned that the Pontiac G8 ST has been canceled. Incidentally, Automobile Magazine is reporting that the Suzuki Kizashi has not been canceled, but will debut in production form at this year’s New York Auto Show.

By Edward Niedermeyer on December 23, 2008

By taking a quid-pro-quo (cash for a new model) approach to its automaker bailout, the Australian government and Holden have opened themselves for significant criticism. And it’s starting to pile on. From The Australian we have reports of backlash from, among others, Australia’s Green party. And their scathing remarks are centered on the GM Cruze variant that received specific subsidization. Greens senator Christine Milne questioned why the “green car innovation fund” was being spent on something that was “neither particularly green, nor in any way innovative.” Says Milne of the SubsiCruze, “even if it is an efficient four-cylinder car, that is hardly green innovation. This is keeping the Australian car industry on life support instead of giving it a new lease of life.” Sound familiar? Getting tired of that question? Apparently Australia’s Greens expected something more revolutionary than a boring ICE compact. According to Senator Nick Xenophon, there is “nothing green about a petrol car. You can make it more efficient but that is just fiddling at the margins.” Incidentally, Xenephon goes on to destroy his credibility by suggesting Australia’s government subsidize a local version of GM’s Volt. Now we’re getting realistic! In other news from the exciting world of The New Mercantilism, Canadians are beginning to worry that their own bailout “is a very difficult situation, because we’ve got a financial plan without a business plan, and that’s the wrong way to do things,” according to Joe D’Cruz, a professor at the University of Toronto’s Rotman School of Management. How did nobody see this coming? Oh wait. (Thanks to JT for the tip)

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