Nov 11, 2015 No. 802

GoAuto NewsJohn Mellor’s

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Two all-new SUVs under development to join mid-sized GS in reborn MG rangeBy RON HAMMERTON in DUBAI

CHINESE-OWNED MG Motor is planning a three-model SUV range to help drive expansion of the born-again British marque in western markets, including Australia where the brand is set for a renaissance from early next year.

Believed to be based on the same scalable front/all-wheel-drive SUV architecture that underpins the mid-sized MG GS SUV launched in China at the Shanghai motor show in April, two more crossover vehicles – a small sporty rival for the Nissan Juke and a larger family wagon – are said to be under development at MG’s Longbridge design and engineering centre in the English midlands.

All three are on the radar for the newly created MG Motor Australia, a wholly owned subsidiary of SAIC Motor Corporation that has taken back distribution of its MG vehicles in Australia after an attempt by a Chinese-based independent distributor

to establish the marque here since 2013.While SAIC will relaunch MG in

Australia with two passenger models – a facelifted mid-sized MG6 hatch and sedan range and MG3 light hatch – it is keen to ride the worldwide SUV popularity wave, starting with the Nissan Qashqai/Hyundai Tucson-sized MG GS in the third quarter of 2016.

SAIC officials – in Dubai for MG’s Middle Eastern launch at the Dubai motor show this week – are tight-lipped about the range rollout, but British journalists are certain it is underway.

The next market to get the MG makeover is Australia where SAIC is in the middle of decking out a new

regional office in temporary premises in Sydney until its permanent office complex is ready to occupy.

First item on the agenda for the new Australian office is finding a home for 388 unsold MG6s that have been sitting on grass in Sydney, Melbourne and Brisbane for up to three years. These vehicles were imported by the previous distributor, Australia Longwell Motor, which is relinquishing the franchise to SAIC.

Continued next page

MG SUV attack

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MG SUV attack

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Continued from previous pageAs GoAuto reported exclusively in

October, SAIC is attempting to clear the decks for a fresh start in March when new stocks of the facelifted MG6 and – for the first time – MG3 arrive from China to jump-start the brand.

SAIC will become the second Chinese car-making giant to target the SUV market in Australia, with Great Wall Motors currently launching its all-SUV Haval range.

Along with LDV vans – known as Maxus in most markets – MG has been chosen by SAIC as its export brand, riding on the residual brand recognition of the historic Morris Garages car-maker which it acquired after MG Rover went belly up in 2005.

Clearly, SAIC sees more sales upside in SUVs than sportcars. Right now, MG appears to have no drop-top two-seater due any time soon, which will disappoint traditional fans of the company once

famous for affordable sportscars such as the MG TC and MG B.

SAIC – China’s biggest motor company with powerful partners in General Motors and Volkswagen – is counting on SUVs to give MG real sales traction, not only in China and Australia but also in other markets such as Europe and New Zealand.

The GS, which is set to be launched in the UK in the second quarter of 2016, will come with a choice of sporty petrol turbocharged four-cylinder engines – a 124kW/250Nm 1.5-litre developed in conjunction with partner GM, and a bigger, more powerful 2.0-litre unit producing 162kW/350Nm.

MG Australia CEO Jason Pecotic – the former managing director of independent Chinese vehicle importer WMC – said his company had taken the decision to launch the GS only with a six-speed dual-clutch automatic transmission.

He said the same call had been made on the MG6, which will be powered by a 118kW/215Nm 1.8-litre four-cylinder petrol engine.

“We have decided to go with automatic across the range wherever possible,” he said. “We will have to launch the MG3 in manual, because a new automatic is still under development by SAIC for that, but we will introduce the automatic version of that as soon as we can when it is available in 2017.”

MG Australia will also eschew the diesel engines offered with MGs sold in the UK, at least in the small-to-medium models announced to date.

Although SAIC has a factory in Thailand, building the MG6, MG5 and MG3 in a joint venture with Thai company CP Group, initial batches of MG6 and MG3 for Australia are likely to both come from China.

As GoAuto has reported, MG Australia is also looking at extending its passenger car range by rebadging new-generation vehicles from MG’s Chinese sister brand Roewe – the one-time Rover of Britain until the Chinese takeover.

This could expand the MG range in Australia out to at least six models.

MG prices to be keen – next pageSUBSCRIBE FREE: www.GoAutoMedia.com

PUBLISHER: John MellorEDITOR: Terry Martin MANAGING EDITOR: Tim NicholsonJOURNALISTS: Daniel Gardner, Ron Hammerton,Byron Mathioudakis, Ian Porter, Tim RobsonPRODUCTION: Haitham Razagui, Tung NguyenEDITORIAL ASSISTANT: Robbie WallisProduced by GoAutoMedia: Ph: (03) 9598 6477 newsroom@goautomedia.net

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SAIC does its homework to avoid Chinese pricing pitfalls with MG relaunch

MG prices to be keen

By RON HAMMERTON in DUBAITHE new-look MG range could be up to 25 per cent better value than rivals when the 90-year-old British marque re-enters Australia under its Chinese owners next year, if pricing and specification in other export markets are any guide.

The new factory-backed importer, MG Motor Australia, has confirmed the first three models for this market – the mid-sized MG6 fastback hatch and sedan, MG3 light hatchback and GS medium SUV.

Pricing and specification are yet to be announced, but GoAuto understands MG’s owner, SAIC Motor Corporation, has taken pains to study the Australian market to fully understand how each of its models will fit in what is regarded as one of the most competitive markets in the world.

SAIC effectively went back to the drawing board on its plans for the MG

rollout in Australia after an attempt to re-establish the brand via a Chinese-based independent importer in 2013 – an arrangement that ended with just six MG6s sold and 388 sitting on grass.

While the pricing was competitive, starting at about $22,000 plus on-road costs, a number of other factors such as the lack of an automatic transmission option and a solitary retail outlet (in Sydney) hamstrung the project.

SAIC has had more success with its second brand in Australia, LDV Vans, which has emerged as the fastest-growing Chinese motor company in Australia this year.

This week, LDV importer Ateco Automotive announced a new entry-level variant for its G10 one-tonne cargo van range, at $25,990 driveaway for ABN holders – more than $8500 cheaper than its closest similar rival, Hyundai’s petrol iLoad with a manual gearbox.

In the UK, where MG has been established for a few years, MG’s products are up to ₤6000 ($A12,828) better value than nearest rivals, according to a comparison of prices and specification by Autocar.

While the mid-sized MG6 – facelifted early this year – costs ₤16,195 in diesel entry form, a Skoda Octavia, which Autocar claims is a good match for the MG in size and performance, costs ₤22,525.

UK pricing is yet to be announced on the all-new MG GS mid-sized SUV to be launched in the UK, Thailand and Australia next year, but one British publication says MG sources have hinted the price is expected to be up to ₤5000 ($A10,722) cheaper than rivals such as the Kia Sportage and Nissan Qashqai.

FULL STORY: CLICK HERELDV G10 at $25,990 d/a – page 28MG6

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Volvo XC90 at centre ofhistoric run on SouthernExpressway in Adelaide

By TIM ROBSONVOLVO made motoring history last weekend when its XC90 became the first vehicle to be legally driven on an Australian public road in autonomous mode.

The XC90 – a stock T6 Inscription – featured in a trial last weekend in South Australia, where a section of freeway outside Adelaide was closed to the public so that the conductors of the test, Australian company ARRB Group, could assess various facets of autonomous vehicle behaviour in a controlled environment.

The test, conducted under the auspices of ARRB’s Australian Driverless Vehicle Initiative (ADVI), included lane changing, traffic behaviour, emergency

stops and on- and off-ramp negotiation. The test was conducted at the

conclusion of Australia’s first driverless vehicle conference, which heard presentations by world-renowned experts in the field of autonomous vehicles, including Volvo Car’s senior technical leader in crash avoidance Trent Victor.

Among the passengers in the closed-road trial were key decision-makers such as South Australian premier Jay Weatherill.

Even though the trial did not require it, the South Australian parliament passed into law a bill that allows the use of autonomous vehicles on the state’s roads.

The Motor Vehicles (Trials of Automotive Technologies) Amendment Bill provides exemptions from current

laws to allow the ongoing trial of the emerging technology.

“This legislation will facilitate public road testing, unlike many other countries which offer only selected roads or small, restricted geographical areas,” said South Australian transport minister Stephen Mullighan.

“Our government is providing the conditions for these trials to occur in South Australia because we recognise the immense benefits that autonomous vehicles and intelligent transport systems will bring to our communities.”

Volvo Car Australia managing director Kevin McCann said the company was proud to be partnered with the ADVI.

FULL STORY: CLICK HEREJLR plans self-drive SUV – page 15

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New 7 Series the world’s most technologically advanced production car: BMW

Landmark vehicle

By TIM ROBSONTHE sedan segment may be shrinking locally, but its importance in other world markets has led BMW to pack its latest large sedan – the sixth-generation 7 Series – with technology borrowed from its cutting-edge i8 and i3 eco-cars.

While some of the headline tech items – like the gesture control for instrument operation and 360-degree cameras – may garner the headlines, it is the construction of the 7 Series’ body that sets it apart, not just from its segment rivals but from mass-produced sedans across the industry.

BMW has taken the lessons learnt from building its i-cars around a platform made of carbon-fibre reinforced plastic (CFRP) and applied it to the 7 Series’ chassis in what, according to the manufacturer, is the first example of CFRP being produced

for vehicles on such an industrial scale.While the bodyshell itself still

resembles a traditional structure in many ways, the strategic use of CFRP in key areas like the roof sills, roof supports, B- and C-pillars and chassis rails has allowed the company to decrease weight while increasing stiffness and strength.

Referred to as a ‘Carbon Core’ by BMW, CFRP is used in conjunction with high-strength steel, regular steel and aluminium, resulting in a bodyshell that is up to 38kg lighter and a total body weight that is up to 128kg lower

than the previous model. Aluminium is also used for the roof, bonnet, front guards and bootlid to save weight.

“It’s a landmark vehicle for the BMW brand,” said BMW Australia CEO Marc Werner. “As the BMW Group’s flagship vehicle, the 7 Series has a strong role to play representing the luxury, elegance, agility and performance that the BMW brand has to offer.

“This vehicle will transform the way we interact with our vehicles through its game-changing technology which includes gesture control, which is a first ever in the automotive industry, and the transfer of the carbon-fibre technology introduced in the BMW i-series.

“With all this technology, there is no doubt that the BMW 7 Series is the most technologically advanced production vehicle in the world.”

Continued next page

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Continued from previous pageFurther to the technology under the

skin, BMW has debuted new equipment for the 7 Series, including new engines, an updated chassis control system and suspension technology – and more.

Available in two body styles, the standard G11 version measures 5018mm in length, while the long-wheelbase G12 version available in both 740 and 750 spec is 140mm longer at 5238mm.

The sixth-generation G11 is 19mm longer in standard form, but essentially identical in width (1902mm) and height (1478mm standard, 1485mm long wheelbase) than the outgoing model.

The new 7 Series retains the same dual-nostril kidney grille, said by BMW to be the largest version ever created. Thermally controlled grille flaps carry over, closing at start-up to facilitate engine warming, opening when cooling is required and closing again for aerodynamic efficiency.

BMW is offering its Laserlight system from the i8 on the 7 Series as an option, distinguished via a blue bar in the centre of the light cluster. The high beam range of the highly concentrated LED light array extends from 300m

to 600m, according to BMW. The tail-lights also feature LED globes.

An M Sport package is also available as a no-cost option. Previously a $10,200 uptick, the package includes front and rear bumper extensions, side skirts, 20-inch wheels, black-painted brake callipers and illuminated door sill plates.

Both 3.0-litre TwinPower Turbo straight-six engines in the 7 Series are new, while the range-topping twin-turbo V8 has been heavily revised. All engines are backed by BMW’s own eight-speed automatic transmission.

The 730d diesel produces 195kW of power and 620Nm of torque, and can dash to 100km/h from rest in 6.1 seconds, while its fuel consumption is rated at 4.9 litres per 100 kilometres.

The twin-turbo six-cylinder petrol makes 240kW and 450Nm, and pushes the 740i to 100km/h in 5.5 seconds, or 5.6 seconds in the case of the long-

wheelbase model. Fuel economy is rated at 7.0L/100km in both variants.

The 4.4-litre twin-turbo V8 powering the 750i and 750iL, meanwhile, makes 330kW and 650Nm, and can dash to 100km/h in 4.7 seconds, returning a fuel economy reading of 8.1L/100km for the 750i, and 8.3L/100km for the 750Li.

The 7 Series comes with air-spring suspension front and rear, while optional adaptive dampers and active anti-roll bars combine with an ‘adaptive’ driving mode for the first time in a BMW to ‘read’ the forthcoming terrain via sensor inputs and a front-mounted camera, adjusting the suspension accordingly ahead of time. The system is $5500.

The so-called Driving Experience Control is standard on 750i/Li, and optional on other models.

FULL STORY: CLICK HEREDRIVE IMPRESSIONS: CLICK HERE

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Leading figure at Hyundairesigns for family reasonsafter three years as COO

A DRIVING force behind Hyundai in Australia, chief operating officer John Elsworth has resigned from Hyundai Motor Co Australia (HMCA) after three years in the job to spend more time with his family.

Mr Elsworth took on the newly created position at HMCA in November 2012 after 22 years of service with GM Holden, and has played a key role at one of the leading brands in Australia, achieving three years of sales growth in an increasingly crowded and competitive marketplace.

In an interview with GoAuto, Mr Elsworth, 46, revealed that he had been thinking about his career and personal priorities over the past couple of months, ever since the day he picked up his seven-year-old twins from school – for the first time ever – and his daughter Maddy described him being there as “my dream come true”.

“It was just a little thing that sort of

triggered something in me, and whilst they are in their developmental or formative years, at seven years old, I think it’s a great time to be helping them and guiding them through the world,” he said.

“From my perspective, I could just happily keep working in the industry, or really take time out and be a better dad – and that’s what I’ve decided to do with my life.

“I’m just going to reconnect with my wife and family and I’m going to help the kids grow up.

“I’m getting a bit philosophical but I think the world’s a really troubling place and I just want to help guide my kids through it more than what you can otherwise do when you’re working full-time.”

Mr Elsworth gave notice last Friday and will leave at the end of this month. He said he has “nothing lined up” in terms of working in the industry and “no plans immediate, short, mid- or long-term to be perfectly frank with you”.

As well as spending more time with family, including his first significant holiday in 25 years (“corporate life doesn’t allow you to”), Mr Elsworth plans to take up surfing (“that’s the big upside of living on the northern beaches of Sydney”) and will also look to take on board appointments at not-for-profit charitable organisations, having been involved in the ‘Hyundai Help for Kids’ foundation and other programs.

FULL STORY: CLICK HEREAll set for Genesis – next page

EXCLUSIVEBy TERRY MARTIN

Elsworth to leave HMCA

John Elsworth with the Hyundai Veloster

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Standalone luxury branda bold move for Hyundaibut RHD limitations loom

All set for Genesis

By STUART MARTINHYUNDAI’S presence in the global luxury car market with the Genesis brand will be tempered in Australia by right-hand-drive availability, according to local company executives.

The South Korean car-maker last week announced plans to launch the standalone luxury brand globally, with a line-up that will grow to six models by the end of the decade, but the Australian range is still to be revealed.

Hyundai offers the Genesis sedan in Australia already, with 593 finding homes since its launch 12 months ago.

It will be renamed the Genesis G80 when it receives a facelift next year, when the Genesis brand stands alone in the same way that Lexus is split from

Toyota, for example. However, the rate of model growth in Australia will hinge on right-hand-drive engineering.

Hyundai Motor Co Australia (HMCA) director of marketing Oliver Mann said this week that the Genesis global range will include a G90 – the updated version of the V6 and V8 Equus large car – while GoAuto understands that other models in the mix include a BMW 3 Series-rivalling mid-size sedan (including high-performance flagship), a sports coupe based on the recent Vision G concept, and two SUVs – a large high-riding wagon based on the Genesis sedan, and a smaller mid-size crossover.

“Globally it (Hyundai) has taken a strategic decision to grow its business and showcase its expertise in quality, technology and the ‘experiential’ side,” Mr Mann said. “The approaching launch of the next-generation Equus

sedan represents the opportunity for Hyundai to rebadge that vehicle and create the brand, to be focused on the human-centred luxury.

“It will start with two models but ultimately will roll out to a product range of six models by 2020.

“We can’t tell which of those vehicles we’ll be getting here today, but Genesis is intending to be a global luxury brand that will stand apart from Hyundai so they will have its own design team,” he said.

Australian buyers missed out on the first Genesis sportscar model – a rear-drive performance coupe with a 260kW/400Nm 3.8-litre V6 engine and a six-speed manual gearbox – because of an absence of right-hand-drive production.

FULL STORY: CLICK HEREHyundai’s new design era – page 31

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Global CEO says Citroenset for ‘bold, audacious’future without DS range

By DANIEL GARDNERCITROEN is looking forward to a future without its premium sub-brand DS in tow, and says the separation offers the company an opportunity to nurture a new and stronger identity for itself.

The French car-maker made the decision to divide the company in 2010 so that the more premium and luxury-focused DS branch could go after the big German players, but that has not left its sister brand without a unique selling proposition, according to Citroen CEO Linda Jackson.

Speaking exclusively to GoAuto at the recent Tokyo motor show, Ms Jackson said that rather than starving the company of an asset, the break from DS has opened up broader horizons for the company.

“No, I see it the opposite way, actually,” she said. “It’s a fantastic opportunity for us, because now what

Citroen can do is concentrate 100 per cent on what they are really good at,

which is positioning.“When you’ve got a premium

brand and a mainstream brand, it can become quite complicated. Now it gives us the opportunity 100 per cent in terms of our product, which is very different from DS, and in terms of the way we come to market.

“We have the ability to really push forward the Citroen brand in a bold and audacious way and you can’t do that when you are trying to mix a premium

brand and a mainstream brand.”With more freedom to explore what

the Citroen brand can do on its own two feet, Ms Jackson, former head of Citroen UK, said more playful models that follow in the footsteps of the C4 Cactus compact crossover could be expected.

“Of the three brands in the group, Citroen is the one that can dare to do things a little bit differently – and that’s what we are going to do in the future,” she said.

FULL STORY: CLICK HEREDS launches Down Under – next page

Citroen welcomes DS split

Linda Jackson

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Citroen premium spin-off launches in Australia with upgraded diesel-only DS5

By TIM ROBSONAUSTRALIA’S newest car brand has officially hit the market with the launch of the revised DS Automobiles DS5.

Available in a single mechanical specification, the updated DS5 marks the start of a model influx that will peak in 2018, when the brand will roll out the first of its independently built models.

It joins the other Citroen-badged DS models, including DS3, DS3 cabriolet and the soon-to-be-updated DS4 on the local roster, but the DS5 is the first official fully fledged DS Automobiles model.

Citroen Australia’s outgoing general manager John Startari told GoAuto that the transition to a completed DS Automobiles brand will take some time, and will encompass a three-part

strategy: establishing the brand, setting up DS Salons in local dealerships, then backing it all with marketing support.

“The fact that we have been in this market for some time with the two brands (Citroen and DS) together means that we need a different strategy to China and in Europe,” said Mr Startari.

“Obviously, the critical mass is there, so separation can happen a lot quicker. I’ve always said that when it’s economically viable, we will fully

separate, but we’re transitioning.”The revised DS5 – still based on the

PF1 platform which also underpins the Peugeot 508 – has been updated with the PSA Group’s most potent diesel, the 133kW/400Nm 2.0-litre four-cylinder ‘BlueHDi 180HP’.

Paired with an Aisin-developed six-speed automatic gearbox, the engine can send the DS5 from 0-100km/h in a claimed 9.2 seconds, and on to a top speed of 220km/h, while returning an official combined-cycle fuel economy figure of 4.5 litres per 100 kilometres. Carbon dioxide emissions are rated at 118 grams per kilometre.

No other engine or transmission option is available for the DS5, with over 90 per cent of customers opting for a diesel version to this point.

Continued next page

DS launches Down Under

Nov 11, 2015 Page 11

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Continued from previous pageThe steering system is still hydraulic,

while the suspension system is not (as might be expected) a version of Citroen’s air/hydraulic Hydractive 3 Plus; rather, more traditional steel springs and dampers are fitted to MacPherson struts on the front end and a torsion bar rear.

Along with the new drivetrain, a new 7.0-inch infotainment screen, DAB+ digital radio, new 18-inch rims, a new LED headlight and daytime running light (DRL) array and blind spot monitoring have been added.

Thirty examples of a limited-edition version known as the 60th Edition will go on sale alongside the revised DS5. It will feature ‘watch-strap’ leather trim, an upgraded Denon stereo system, 19-inch rims and a choice of premium paint, plus additional trim pieces inside and out, for an additional $3000.

Other standard features on the regular DS5 include bi-Xenon headlights, LED DRLs and LED scrolling indicators, LED front foglights with cornering

function, 18-inch black alloy rims, black leather upholstery and a 7.0-inch touchscreen with MirrorLink, the DAB+ radio, satellite navigation and guided-line reversing camera.

A leather-clad steering wheel, analogue clock, electronic handbrake, cruise control with speed limiter and memory settings, USB and auxiliary jacks, front and rear parking sensors, interior LED mood lighting, folding and heated door mirrors, dual-zone climate-

control air-conditioning, automatic wipers and headlights, and a colour head-up display are also fitted.

The front seats are heated and fitted with electric lumbar adjustment and massage function, while driver convenience also extends to keyless entry and push-button start.

FULL STORY: CLICK HEREDRIVE IMPRESSIONS: CLICK HEREChina link for local DS – next page

DS launches Down Under

Nov 11, 2015 Page 12

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GoAuto NewsJohn Mellor’s

Mercedes-Benz Sydney, 43-47 O’Riordan Street, Alexandria, NSW. Tel 02 9697 7777, www.mbsydney.com.au

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Pre-Owned Valuer/Buyer – Mercedes-Benz SydneyMercedes-Benz Sydney is seeking an experienced vehicle Valuer/Buyer with knowledge of the prestige vehicle market.

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China link for local DSAustralia could switch toChina for DS supply laterin decade as range grows

By TIM ROBSONPSA Peugeot Citroen’s DS brand is espousing the return of the French luxury car, but expectations are high that production will switch from the Poissy plant to the company’s purpose-built facility in China for the Australian market.

Officially launched here late last month as part of the arrival of the updated DS5, the upmarket offshoot of Citroen targeted the Chinese market first, establishing a standalone dealer network and setting up a joint partnership with Changan to build the DS in Shenzhen.

Currently, the plant builds the DS5 in a standard and long-wheelbase version, along with the new 6WR SUV.

The 6WR is currently only sold in China, but is expected to expand into other markets before 2020.

There are currently more than 84 self-styled DS Stores in China, while 26,000 DSs were sold there in 2014. The Australian operation hopes to

have six models for sale by 2020, with all 22 local Citroen dealers required to have a standalone DS presence in their showrooms.

Outgoing DS Automobiles general manager John Startari told GoAuto that globalisation meant all options needed to be considered, suggesting that it is not essential that DSs be built in France.

“I really believe that we live in a globalised world, and in essence most people are aware that their cars aren’t built in the ‘mother country’,” he said.

“There are a lot of European brands now that are built around the world. That’s just a product of globalisation. I don’t think you can survive long-term if

you want to stick to your roots. But I think it (the French connection) is a point of difference and one we should leverage.”

When asked if the Australian operation could potentially source its DSs from China, Mr Startari replied: “Never say never.”

Mr Startari also drew on the brand’s debut in China as an example of how the Citroen and DS brands can successfully split.

“When the decision was made to separate, obviously it’s a big call, and if you look at what happened in China it’s been a huge success story,” he said.

FULL STORY: CLICK HERE

6WR

Nov 11, 2015 Page 13

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First-ever open-air RangeRover to start at $84,440when it arrives next year

Open season for Evoque

By TERRY MARTINRANGE Rover has unveiled its Evoque Convertible – billed as the world’s first luxury compact SUV convertible – that will be priced from $84,440 plus on-road costs when it arrives in Australia in the third quarter of 2016.

As per the regular Evoque five-door wagon and three-door coupe range, the four-seater fabric-roofed crossover offers Jaguar Land Rover’s latest 2.0-litre Ingenium petrol and diesel engines, with the Si4 petrol at the entry level in SE Dynamic trim and the Td4 180 diesel just $395 further upstream at $84,835 in the same specification.

Two higher-series HSE Dynamic variants will be offered with each powertrain, priced from $92,015 and $92,410 plus on-roads for the petrol and

diesel respectively. That places Range Rover’s first-ever

convertible well above the equivalent Evoque Coupe on which it is based, to the tune of $11,410 in petrol form or $15,415 as a diesel. The hard-headed version is currently only offered in top-line HSE trim, with the HSE Dynamic Td4 180 priced from $76,995 and the equivalent Si4 kicking in at $80,605.

For the money, Australian consumers are buying into the vehicle’s uniqueness – this is, after all, “the most capable all-terrain convertible in the world” – as well as its distinctive design and wind-in-the-hair attraction.

The lightweight fabric roof, which uses a fully automated Z-fold mechanism, stows in a claimed 18 seconds at speeds up to 50km/h. Raising the roof takes an extra three seconds.

Jaguar Land Rover promises space for four adults while providing a 251-litre boot and access to the

luggage compartment via a ski-port. Its engineering team is said to have met the British manufacturer’s “most rigorous standards, ensuring exceptional structural rigidity, trademark refinement, outstanding levels of safety and unrivalled breadth of capability”.

Indeed, despite the fact that JLR describes the fabric roof as the longest and widest “currently fitted to any vehicle on sale today”, the acoustic insulation is said to ensure interior comfort on a par with the five-door Evoque – when the roof is raised, of course.

FULL STORY: CLICK HEREJLR plans self-drive SUV – page 15

PRICING:SE Dynamic Si4 (a) $84,440SE Dynamic Td4 180 (a) $84,835HSE Dynamic Si4 (a) $92,015HSE Dynamic Td4 180 (a) $92,410

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Nov 11, 2015 Page 15

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Jaguar Land Rover to be first with an autonomousall-terrain vehicle: Speth

JLR plans self-drive SUV

Ralf Speth

By DANIEL GARDNERJAGUAR Land Rover has taken a step further in its development of autonomous vehicles, with JLR chief executive Ralf Speth confirming to GoAuto that the company is working on a self-driving SUV and plans to be the first car-maker to offer a production vehicle that can drive itself off-road.

The Indian-owned British car-maker recently showcased a host of experimental technologies, including projects that explore self-driving technology. However, the technology is now so far down the development path that a marketable version is in sight.

Speaking at the Japanese reveal of Jaguar’s first SUV – the F-Pace – at the recent Tokyo motor show, Mr Speth said the current technology was already well advanced and “not a big step” to bring it to market.

“It’s autonomous driving and it’s really great,” he said. “You can already drive it with an iPhone. We tested it and in principle that’s not a big step so it’s

just a question of whether the demand is given then we can use it quite quickly.”

The company’s range of large luxury SUVs already incorporate a variety of

safety technology including autonomous braking, adaptive cruise control and perimeter monitoring cameras for manoeuvring on and off road, and Mr Speth explained that the transition from driver assistance into full autonomy was far simpler than many realise.

“It’s just software and the electronic architecture is so similar you can just option it,” he said.

Such is the simplicity of updating the software that Mr Speth said the technology would ultimately be available “for all the SUV vehicles in principle because it’s the same technology” rather than just one specifically engineered model.

As virtually all global car manufacturers – and many others including parts giants and technology companies – working in this field are reporting, the main barriers to this fast-growing field are infrastructure and legislation rather than the core technology and the ability of the various evaluation vehicles.

While the benefits of on-road driverless vehicles are widely known, off-road autonomy is less frequently discussed, but Mr Speth explained a driverless all-terrain vehicle has just as many advantages.

‘Regular’ road-going vehicles allow occupants to perform tasks other than driving, but the JLR solution allows passengers to leave the vehicle while it negotiates tricky obstacles.

FULL STORY: CLICK HERE

Land Rover Discovery Sport development

Nov 11, 2015 Page 16

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Upgraded and renamed Mercedes SUV emergesahead of LA show debut

New GLS breaks cover

By TIM ROBSONMERCEDES-BENZ has revealed specifications and images of its updated and renamed GL-Class SUV range, now known as the GLS, that brings a comprehensive makeover under modest sheetmetal changes.

The basic range will comprise the GLS350d, GLS400 and GLS500 variants, all with a nine-speed automatic transmission as standard, along with a revised version of Mercedes’ air-sprung suspension system and new assistance and telematics systems.

A range-topping AMG variant will also be produced.

Mercedes-Benz Australia/Pacific public relations and product communications manager Jerry Stamoulis said the new range will be similar to the existing four-variant line-up.

“We’ll announce pricing and specifications early next year, ahead of a May 2016 launch,” he said. “The spec levels will be similar to what you see in today’s GL range.”

Mr Stamoulis added that the company expects to see a similar uptake from

customers that it has experienced with the GL, which has sold 600 units to the end of October, some 260 ahead of the Range Rover which holds second place in the upper-large SUV category.

“We’ll aim to continue to hold segment leadership,” he said.

Kicking off the range is the 350d, with its 3.0-litre V6 turbo-diesel now producing 190kW of power and 620Nm of torque. A twin-turbo 3.0-litre six-cylinder petrol engine powers the GLS400, making 245kW and 480Nm, while a twin-turbo V8 can be found under the bonnet of the GLS500. It now makes 335kW (15kW over the GL) and 700Nm.

The AMG GLS63, meanwhile, retains its seven-speed automatic, and boasts 430kW and 760Nm – the highest performance figures for any of Mercedes-AMG’s SUV range.

Mr Stamoulis confirmed that

Australia would take the hot-rod AMG variant, but was unable to confirm whether the 400 – not currently sold here in GL-Class form – would make it.

The GLS has undergone minor reconstructive surgery front and rear, with new headlights, refreshed grille and new lower bar treatment up front, while new tail-lights and a minor bumper tweak make up the rear changes.

The seven-seat interior, too, has been updated, with a new steering wheel fitted with shift paddles, a revised instrument panel, new centre console with the protruding media display and a small touchpad between the front seats.

Cargo space is 680 litres with all seven seats in place, and 2300 litres with the seats folded down. Payload capacity is 815kg, while the cargo area can accept items more than 2.1 metres long.

FULL STORY: CLICK HERE

GLS63 AMG

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New Buick large sedanshapes up for US, withclose connections here

LaCrosse’s Aussie accent

By RON HAMMERTONGENERAL Motors’ next-generation Buick LaCrosse will feature design cues from the show-stopping, Australian-crafted Buick Avenir concept car when the large front-wheel-drive sedan goes on sale in North America next year.

To be unveiled at the Los Angeles motor show this month, the 2017 LaCrosse is believed to have been designed by a team headquartered in Detroit and reporting to former Holden design director Andrew Smith, who was GM executive director for Buick and Cadillac design during the closing stages of the project.

The Aussie links to the third-generation, Commodore-sized LaCrosse beg the question: what are the chances of the big American taking

a spot in the new-look Holden range when the locally built Commodore and Caprice are killed off in late 2017?

Holden refuses to discuss speculation about potential Commodore replacements, other than to say it will have a hand in the development of the new version.

So far, Buick has released two dark teaser images of the LaCrosse ahead of its show debut on November 17. One shows the new-look waterfall grille, while the other reveals the side aspect with a flowing roofline and Buick’s distinctive up-kick around the rear haunches.

By GM’s own admission, the shape owes plenty to the Buick Avenir that was largely designed and built at GM Australia Design’s Melbourne studios.

The original sketch for Avenir was penned by Holden designer Warrack Leach before a trans-Pacific design team – working simultaneously at Holden and other GM studios – brought it to reality.

The final vehicle was fabricated in Melbourne and shipped to the US

where it was unveiled in January at this year’s Detroit motor show, wowing the masses and winning the EyesOnDesign best concept award.

While the Avenir is a concept for a large rear-wheel-drive Buick flagship based on GM’s Omega platform, it is also a design exercise expressing the future styling direction of Buick, GM’s mid-range brand sitting between Chevrolet and Cadillac.

That design language is set to get its first outing on the LaCrosse – a Commodore-sized front-wheel-drive large car built on the same new GM E2XX architecture as the next Opel Insignia and just-launched North American Chevrolet Malibu.

And because Buick, Opel, Vauxhall and Holden now share products globally, any car from Buick must be considered a chance for Australia’s Holden line-up, minus the Buick-specific grille and badges.

FULL STORY: CLICK HERE

New LaCrosse

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Mazda draws attention tonext CX-9 bound for LA

By TIM NICHOLSONMAZDA has provided a glimpse of its forthcoming CX-9 SUV ahead of its Los Angeles motor show debut, revealing a design that will follow its smaller CX-5 and CX-3 siblings.

The second-generation CX-9 will arrive in Australian showrooms late in the second half of next year, according to Mazda Australia.

The single sketch shows a sleeker look for the seven-seat SUV compared to the eight-year-old version that received a major facelift in 2012, with sharper headlights, revised grille and a new front bumper incorporating foglights.

Mazda looks to have kept the overall shape of the CX-9, but chunkier wheelarches and more modern slimline tail-lights are evident.

The new CX-9 will be the last model in Mazda’s passenger car and SUV line-up to be built using its lightweight SkyActiv chassis and engines, and the new powertrains are likely to reduce fuel consumption – an area in which the high-riding wagon has been criticised.

FULL STORY: CLICK HERE

Mazda outlook

New HQ reflects growth but MD sees ‘stable’ 2016

Martin Benders

By TIM NICHOLSONMAZDA Australia managing director Martin Benders says 2016 will be a year of consolidation for the Japanese brand, with few major launches but a full year of CX-3 supply ensuring a stable year of sales.

In terms of overall sales this year, Mr Benders said Mazda would exceed 110,000 units by the end of 2015, beating the 2014 tally of 100,704 by almost 10 per cent.

Currently Mazda is in second spot for year-to-date sales on 94,509, behind a dominant Toyota on 166,617, and ahead of Hyundai (86,429) and Holden (84,916).

The only major launch expected in 2016 is the all-new CX-9 in the second half of the year, although there is a chance the Koeru concept-based CX-4 crossover could make it to market before next year is out.

The CX-3 will have its first full year on sale, and top sellers such as the Mazda3 and the CX-5 are expected to continue their solid form, but Mr Benders said

it would be unlikely that the company would see much overall growth in 2016.

“We will be looking to stabilise again there,” he told GoAuto at the company’s global HQ in Hiroshima. “That’s how we have grown over the last 15 years. We have

sort of stepped up. With no significant new model coming in next year, in the sense of additional models, then I think we can stabilise where we are.

“We have a few things happening but I think it will be a year of consolidation for us and from then on we start thinking about next generation (models) and all that other stuff.”

FULL STORY: CLICK HERE

CX-3

Nov 11, 2015 Page 21

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Local demand strong fornew Lamborghini modelahead of 2016 deliveries

Huracan Spyder on tour

ASTON MARTIN’S 007 DB9TO CELEBRATE the release of the latest instalment of the James Bond movie franchise, Spectre, Aston Martin has released a special edition of its DB9 GT, aptly named the Bond Edition.

Priced at, ahem, $435,007 (plus on-road costs), the Bond Edition will be restricted to 150 examples worldwide – five of which have been allocated to Australia.

The pricetag represents a sizeable hike over the regular GT, which comes in at $368,500, and is even more expensive than the drop-top Volante, priced from $399,501.

The Bond Edition can be distinguished from the regular DB9 GT by several subtle styling changes and accessories.

FULL STORY: CLICK HERE

By TUNG NGUYENLAMBORGHINI Australia is preparing to build on its record sales performance this year, bringing its latest drop-top superhero – the Huracan Spyder – for customer events ahead of first deliveries in the second quarter of 2016.

Making its Australian debut at the Lamborghini Melbourne dealership in Richmond earlier this month, the Huracan Spyder is priced from $470,800 plus on-road costs.

Interest in the Raging Bull’s latest supercar has been strong, according to Automobili Lamborghini Oceania manager Eginardo Bertoli, who expects the new lid-lifted Lambo to push sales even higher.

Lamborghini has sold 84 Aventadors and Huracans so far this year in Australia, easily surpassing last year’s 27 vehicles sold and eclipsing 2013’s then-record 47 units.

Mr Bertoli said the local market has been performing very well for the Italian supercar-maker and he expects the trend to continue.

“We are collecting a lot of orders, there is a lot of interest,” he said. “Our numbers, our market performance in Australia is very successful. We are very satisfied.

“I feel confident that this is a trend which will stay as we are introducing new products, like in the case of the Spyder.”

Mr Bertoli said he expects the waiting list for the new Huracan Spyder to lengthen as the car makes its way up to

Sydney and then on to Lamborghini’s newly opened Brisbane dealership.

“We are collecting orders at a very good pace. Of course, Lamborghini is limited with production, so it will take some time to deliver,” he said. “So at the end of this, you know roadshow, I can tell you.”

Speaking on the success of the marque locally, Mr Bertoli said the company has been actively promoting itself Down Under and that “Australian people love our brand”.

“We are working on our brand, which is becoming more and more established in Australia, gaining more publicity with the marketing events involving media and PR activity, we have a very well established dealer network across four states, and finally the product line-up that we have is outstanding with Aventador and Huracan,” he said.

Designed from the ground-up to function as a convertible, the Huracan Spyder shares the same underpinnings as its coupe sibling, only with a retractable roof that can be lowered and raised in 17 seconds at speeds up to 50km/h.

FULL STORY: CLICK HERE

Nov 11, 2015 Page 22

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Connectivity, safety improvements headline Hyundai SUV’s mid-life overhaul

Santa Fe steps up

By STUART MARTINBUYERS of Hyundai’s updated Santa Fe SUV will be better connected and safer than ever with the addition of more voice control options and automatic emergency systems for the refreshed high-riding wagon.

The South Korean car-maker will be hoping the restyled and restocked seven-seat large SUV improves on its 391-unit October sales performance and its mid-pack position in the segment.

Year to date, Santa Fe sales are up 5.2 per cent to 5699 units but down on the segment growth rate of 8.4 per cent.

The brand as a whole was second to Toyota last month in overall sales,

shifting 9003 units which is an improvement of 7.2 per cent for the year thus far.

Hyundai sits third overall behind Toyota and Mazda, with year-to-date sales of 86,429 sales, and is tracking toward a tally for the year of 104,000.

The Santa Fe sales mix is split between the base Active and mid-spec Elite, each making up around a

quarter of its sales, while the diesel-auto-only Highlander is responsible for about 45 per cent.

But the facelifted model is under renewed competition in the segment from the rookies in Ford’s Everest and the Toyota Fortuner, as well as established competition from Holden’s Captiva and Colorado 7, the Nissan Pathfinder, Jeep’s Grand Cherokee, Isuzu’s MU-X and Toyota’s dominant duo, the Kluger and Prado.

Hyundai Motor Co Australia director of marketing Oliver Mann said he was unconcerned by the influx of capable four-wheel-drive competition arriving in the segment.

Continued next page

PRICING:Active 2.4 GDI $38,490Active 2.4 GDI (a) $40,990Active 2.2 CRDi $41,490Active 2.2 CRDi (a) $43,990Elite 2.2 CRDi (a) $49,990Highlander 2.2 CRDi (a) $55,990

Highlander

Nov 11, 2015 Page 23

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Continued from previous page“They are selling to slightly different

mindsets and lifestyle usages,” he said. “They are fairly hardcore vehicles in terms of towing and off-road ability; they are less successful perhaps in the city. Santa Fe manages to do both fairly successfully.”

Connectivity and safety are among the highlights for the facelifted Hyundai Santa Fe.

Autonomous emergency braking dwells within a suite of active safety systems (only available on the Highlander) and a 10-speaker premium sound system are among the upgrades for Hyundai’s SUV flagship.

The range has also undergone extensive local suspension tuning as well as aesthetic tweaks inside and out.

The ‘Series II’ also gains – as standard equipment on all models including the base Active – voice activation for both Apple and Android phones, although integration of the music-sharing systems from the respective companies remains a work in progress.

The four-tier Santa Fe Series II range

comprises Active petrol and diesel variants with both a manual gearbox and an automatic transmission option, with the 2.2-litre turbo-diesel automatic available in all grades – Active, Elite and Highlander.

The SR will arrive early in 2016 near its current $60,000 pricetag, and while it loses the automatic parking system, it gains OZ alloy wheels wrapped in Michelin rubber covering Brembo brakes, as well as H&R springs and a bodykit.

Both the petrol and diesel engines have been tweaked for the model upgrade. The 2.4-litre direct-injection variable-valve petrol engine has actually dropped power by 3kW to 138kW at 6000rpm, and 241Nm of torque at 4000rpm is also down by 1Nm, but Hyundai is claiming output sacrifices have been made for improved driveability.

The petrol engine is available in both manual and automatic, both six-speeders and both claiming a 0.3 increase in fuel use to 9.4 litres per 100 kilometres.

The 2.2-litre common-rail direct-injection four-cylinder turbo-diesel

has an extra 2kW, with peak power of 147kW at 3800rpm.

Torque of 440Nm (up 4Nm for the auto and 19Nm over the previous manual) for both transmissions is available across a slightly broader spread – 1750-2750rpm.

The turbo-diesel is offered in manual and automatic guise but three pedals are only offered in the Active, which claims 6.3L/100km, while the six-speed automatic returns 7.7L/100km. Both represent slight (less than 0.5L/100km) improvements over the previous equivalent model.

The exterior has been updated and bears a strong family resemblance to the revamped Tucson SUV, with updated front and rear bumper profiles, new-look headlights, new wheel designs and revamped front grilles.

The entry-level Active now has a chrome-on-silver grille, whereas the Series II Elite and Highlander models are fitted with a satin-chrome version.

FULL STORY: CLICK HEREDRIVE IMPRESSIONS: CLICK HERE

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Volkswagen sales down6 per cent last month as‘dieselgate’ scandal bites

VW sales growth stalls

VFACTS WRAP

Pos Brand Sales % Share

1 Toyota 16,964 18.0

2 Hyundai 9003 9.5

3 Mazda 8532 9.0

4 Holden 8088 8.6

5 Ford 6098 6.5

6 Nissan 5961 6.3

7 Mitsubishi 5508 5.8

8 VW 4480 4.7

9 Subaru 4112 4.4

10 Honda 3261 3.5

Source: VFACTS

Top 10 Brands in Oct

By RON HAMMERTONVOLKSWAGEN Group Australia’s decision to suspend sales of certain diesel models pending a fix for the ‘dieselgate’ software problem had a knock-on effect in showrooms last month, with VW vehicle sales down 6.0 per cent on the corresponding month last year.

It was the first month this year that VW recorded a year-on-year decline, reflecting in part the suspension of diesel-powered vehicles affected by the scandal and ending nine straight months of growth for the brand, official VFACTS sales figures show.

However, VW sales are still up 11.9 per cent year to date, with the company still hoping for a record annual tally this year, eclipsing 2013’s 54,892.

Sister company Audi shrugged off its involvement in the scandal, smashing its October record with 2030 sales, a

rise of 25.9 per cent over last October’s 1613 units.

In doing so, it eclipsed arch-rival BMW’s October effort of 2001 vehicles, despite a 4.9 per cent rise in Beemer sales compared with October last year.

Another VW Group brand, Skoda, also did not miss a beat last month, with sales up 16.4 per cent for 412 units.

The overall market sales tally of 94,321 – up 3.4 per cent on the same month last year – represents the second best October in history, just behind 2013’s 96,924 vehicles.

With 957,153 vehicle sales already in the bag, the industry is looking forward to smashing through the million-vehicle barrier this month and perhaps cruising to a new annual record by December 31.

SUVs again led the charge, with sales of the popular wagons up a whopping 20.5 per cent for the month, mainly on the back of big rises in small and medium-class SUVs.

This SUV growth helped make up for declines in passenger car and light-commercial vehicle sales, down 5.3 and 1.9 per cent respectively.

This year, SUVs have accounted for more than 35 per cent of sales,

compared with 31.5 per cent to the same point last year.

Toyota again led the sales charts in October, with 16,964 sales for the month – a decline of 2.4 per cent.

The Japanese giant had four of the top-10-selling vehicles in the land, with

the all-new HiLux ute landing with a bang to take out top position with 3339 sales.

HiLux 4x4 variants achieved their best October sales on record with 2601 units shifted.

Its Toyota stablemate, the Corolla, came second with 3271 sales, ahead of Hyundai’s discounted i30 small car on 2669.

In all, Toyota had an impressive four vehicles in the top 10, with its locally made Camry coming in seventh (2142) and the RAV4 medium SUV at 10th (1685).

Hyundai, with 9003 sales in October, edged out Mazda (8532) for second place, even though Mazda enjoyed an impressive 24 per cent lift in October sales, thanks mainly to its popular SUVs, the new CX-3 and mid-sized CX-5.

FULL STORY: CLICK HERE Record sales tally in sight – page 29

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Nov 11, 2015 Page 25

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Kiwi auto market rises5 per cent to circa 30Kvia passenger car surge

Record sales in NZ

NZ SALES WRAP

Pos Brand Sales % Share

1 Toyota 3324 26.2

2 Holden 1305 10.2

3 Ford 1225 9.6

4 Mazda 1028 8.1

5 Hyundai 735 5.7

6 Mitsubishi 611 4.8

7 Nissan 605 4.7

8 Suzuki 411 3.2

9 VW 316 2.4

10 Mercedes 285 2.2

Source: NZ MIA

NZ Top 10 Brands in Oct

By JACQUI MADELIN in NEW ZEALAND

NEW Zealand new-vehicle sales continued to boom in October, with passenger cars leading the charge, while light-commercial offerings took a dive.

NZ Motor Industry Association chief executive David Crawford said last month brought record new-vehicle sales for October, with registrations up five per cent to 12,684 units, and he predicted another big finish for the year.

“Registrations of new vehicles have averaged a staggering 11,237 a month year to date, and if this pace continues the industry will smash last year’s

record sales of 127,352,” he said. Total industry sales to the end of

October stands at 112,217.New passenger car registrations were

up eight per cent in October, rising 726 units to 9636 vehicles, while commercial registrations were down by 65 vehicles, to 3048.

Used-vehicle sales remain strong, with a rise of 1.5 per cent over October 2014 to 11,985 units.

Toyota sold one in four new vehicles in New Zealand last month, with 3324 sales, up 7.2 per cent on the same month last year.

Holden was second, up 7.1 per cent to 1305, and Ford third, down 9.8 per cent to 1225.

Ford NZ managing director Corey Holter said October 2014 was an extremely strong month for Ranger, while this year the company was “a little short of supply, which will be rectified in November”.

Mr Holter said he was happy with the launch of the Ranger-based Everest, which sold 46 units in its first full month,

just one unit behind Toyota’s Prado.He said he was also pleased with the

performance of the Mondeo, which is second place in the mid-size segment by just two units from the Mazda6,

while the facelifted Focus is one unit out of the top three in the small-car segment after its first full month of retail.

Mr Holter said he believes the market is set for a record come the end of the year.

“The dairy payout is coming back up, and there’s still strong consumer sentiment in Auckland and Christchurch,” he said.

Mazda ended October in fourth place behind Ford, up 41.8 per cent to 1028 sales.

Mazda NZ managing director Andrew Clearwater said October represented the first time the car-maker had sold more than 100 units in a month.

“I think it’s a combination of good stock supply, and new models,” he said.

FULL STORY: CLICK HERE

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Nov 11, 2015 Page 26

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Dealers await ASIC rulingthat could pose threat totheir flex finance income

Loan decision ‘imminent’

By JOHN MELLOR

PremiumGoAutoNews

THE future profits of some Australian car dealerships potentially hang on a final decision soon to be announced by the Australian Securities and Investments Commission (ASIC) which could change forever the way dealers earn significant slabs of their revenue.

ASIC has, for some years, been considering the payments of vehicle loan commissions by finance companies to dealers on the basis of the interest rate achieved by the dealer in selling the loan contract.

Dealers that sell at an interest rate above the base rate, which is generally set around the home loan rate, earn significantly higher commissions on the basis that the loan will generate much greater revenue for the finance company over the life of the contract.

Dealers have traditionally shared in the greater revenue generated thus creating a great incentive for dealers to sell a loan at the highest interest rate possible. As dealer margins are squeezed across their businesses, these flex-over-base-rate commissions have become a key contributor to the ongoing financial viability of many dealerships.

ASIC has made it known it wants to stop the flex-over-base-rate incentive because it sees the structure as a conflict of interest for dealers that disadvantages car buyers.

ASIC is also on record as saying that the arrangement “is costly” to finance companies and that some finance companies “are uncomfortable” with them. ASIC says that it is difficult for any one finance company to end flex commission arrangements as they risk losing market share to those that continue it.

ASIC is therefore asking for broad

intervention powers to address the issue.

ASIC said in a submission in 2014: “We could, for example, seek to prevent flexi commissions from operating or apply a cap on the commission payments payable to dealers by financiers.”

Industry sources have told GoAuto that an announcement of the final rules devised by ASIC and the government “are imminent” and some are saying as early as the next few weeks.

Dealers will be looking at two things: the severity of the limit on commissions devised by ASIC and the degree to which their finance companies devise new commission structures for dealers to offset any loss or reduction in flex-over-base-rate commissions.

Dealer consultant Wayne Pearson, a former managing director at Deloitte Motor Industry Services who until recently ran six dealerships in Sydney, told GoAutoNews Premium the issue with the government was not in the commissions earned by dealers but the method used to earn them which encouraged dealers to “stretch the envelope” on loan interest.

He said that in dealer briefings he

attended the government was not saying the dealers were earning too much money, but that the mechanism that people are paid more money based on charging people a higher interest rate was wrong.

“So their argument was not so much getting commissions but the motivation for selling high interest rates,” he said.

“If you turn the mechanism into a volume bonus, for example, where you are incentivised to write more finance deals, the government says that is fine because that is competitive. Sell more, earn more: that is your job. That makes sense.

“But by earning more money just by charging people a higher interest rate, they see that as being offensive.”

Mr Pearson said changes could hurt dealers “particularly if there is no flex-over-base-rate at all”.

But he said dealers were told in industry briefings that the government would accept a “reasonable” flex-over-base-rate.

“I was under the impression that when this final ASIC review was complete that the government might accept three per cent as being fair because some people need to pay some margin over base rate (to cover credit risk) but it was the big deals that were going to get killed,” he said.

“So I was under the impression that they would cap the rate. So as a dealer you can sell up to, say, three per cent over base rate.”

Continued next page

‘Some dealers are very dependent on high interest

rate finance for most of their profitability or even all of

their profitability’

Nov 11, 2015 Page 27

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Second Perth dealershipreceives council approval,set to open early in 2017

Audi expands in WA

By NEIL DOWLING

PremiumGoAutoNews

AUDI is defying the Western Australian car slump by announcing a second Perth dealership, investing $13 million to establish one of its distinctive “terminals” in a busy retail automotive district.

To be owned and operated by the existing north-of-the-river Audi Centre Perth principals, David Collins and Peter James, the second centre last week received council approval in Melville, a car dealership hub south of the Swan River.

Audi currently has one Perth outlet compared with Mercedes-Benz and BMW, which each have two. AHG owns the two Mercedes showrooms and the Regent Group owns the two BMW outlets.

In detailing plans for the new Audi dealership, Mr Collins said: “It’s time.

“We were market leaders last month, outselling BMW and Mercedes-Benz’s non-commercial range.

“We have a lot of customers south of the river and expect that the new dealership will increase new-car sales

for us by 20 per cent.”The new terminal will be smaller than

the flagship complex in Osborne Park, built in 2012, which has room for 21 new vehicles. The Melville terminal will have space for 16 new vehicles.

“It will have 15 service bays and will employ 40 people,” Mr Collins said.

The new terminal will start construction early next year and is expected to be completed in the first quarter of 2017.

“The Melville council has been very supportive of our move into the area. We initially looked at a site on the main Leach Highway thoroughfare but because of the very heavy traffic, were concerned about access by our customers,” Mr Collins said.

“So we chose a site on North Lake

Road, which is not as busy and easier for customers to access.”

Audi has sold 1329 passenger cars and SUVs in WA for the year to October 31. This compares with BMW in WA at 1322 and Mercedes-Benz at 1620 non-commercial vehicles.

For the month of October, Audi in WA sold 143 passenger cars and SUVs against BMW (120) and Mercedes-Benz (115).

Part of the strength of Audi has come from its SUV range. Audi in WA has this year sold 547 SUVs compared with BMW (522) and Mercedes-Benz (353).

“As a brand, Audi has had a lot of success in niche products,” Mr Collins said.

“The range is also spread out in terms of pricing, from $29,990 for an Audi A1 through to $465,000 for an R8.”

Continued from previous pageMr Pearson said that 90 per cent of

dealers sold finance at up to three per cent over base rate but dealers which rely on selling finance at very high interest rates would have to rethink their business model because they will be precluded from doing so under the legislation and this would especially be the case if the finance companies went back on “verbal undertakings to dealers in dealer group meetings that they would find another way of compensating them”.

“There is no doubt that dealers can significantly improve their profitability through writing high interest rate

finance. But some dealers are very dependent on high interest rate finance for most of their profitability or even all of their profitability,” he said.

“If the finance companies don’t come to the party on this then those dealers are going to significantly struggle. There is no doubt about that.

“If that means they will make less money from a big return, or just make no money at all, it will definitely impact on those dealers and they will have to go looking elsewhere to make money.

“So dealers will have to have a good hard look at their business model to look at where they can pull back expenses and look at how they

can trim the cloth. That might be an opportunity to significantly pull back on the commissions they pay their own finance people by changing commission structures to reduce their costs there. They will look at their real estate costs, the cost of advertising and they will look at their people.

“If the final decision is that there will not be any commission for selling flex-over-base-rate the finance companies will have to go back and change their model for paying dealers.

“But if the final result is that you can only make so much over base rate, say three per cent, then 90 per cent of dealers will be fine.”

Audi Centre Perth

ASIC loan decision ‘imminent’ as dealers await potential threat to flex finance income

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Ford Ranger XLT 4x4 Double-Cab Pick-upWhen introduced in 2011, the Ford Ranger shook up the LCV segment, with its macho design and driveability. But times have changed. Toyota recently launched its new HiLux with a five-star crash rating and drivetrain upgrades seeking fuel economy. That followed a new Mitsubishi Triton and a coil-sprung Nissan Navara. Given the level of the competition, is the Ranger’s rise about to be halted? FULL STORY: CLICK HERE

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LDV G10 AT $25,990 D/ACHINA’S fastest-growing motor vehicle brand in Australia, LDV, has upped the marketing stakes with the release of a workhorse manual version of its G10 one-tonne one-box van that is priced about $8500 cheaper than the most affordable of its direct Korean, Japanese and European rivals.

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FINAL LANCER EVO HEREMITSUBISHI’S strictly limited Final Edition Lancer Evo will send the hi-po sedan out with its biggest-ever bang, with a power boost that adds 9kW and 48Nm but only $800 to the pricetag.

Priced from $53,700 plus on-road costs, the Lancer Evolution Final Edition will be limited to just 150 examples in Australia and offered only with a five-speed manual gearbox, as well as a host of performance-focused enhancements.

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Crisis deepens

VW admits CO2 ‘irregularities’ on circa 800,000 carsBy TIM ROBSON

VOLKSWAGEN’S global emissions scandal has deepened, with the company admitting last week that its internal audit into the cheat device issue has uncovered evidence of carbon dioxide emissions reporting breaches in at least 800,000 cars across the group.

The German company says that CO2 emissions – and hence fuel consumption – figures have been set too low on a range of models sold in Europe.

“During the course of internal investigations, irregularities were found when determining type approval CO2 levels,” the company said in a statement.

This leaves the company exposed to further legal action from consumers who purchased cars based on stated emissions levels. Various European countries offer incentives to car buyers who opt for low-emissions vehicles.

VW has put aside another €2 billion ($A3.05b) to cover what it calls the “economic risk” from the revelations, which came on top of news earlier last week that the group’s 3.0-litre six-cylinder turbo-diesel engine is now under investigation by the US EPA (Environmental Protection Agency).

FULL STORY: CLICK HERE

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Means Performance.

Nov 11, 2015 Page 29

By RON HAMMERTONWITH two months to go in 2015, Australia’s motor industry is edging towards another annual record and a sixth straight year of million-plus sales.

All being well with the economy, the current record of 1,133,227 – set in 2013 – should tumble. If the current running rate is any guide, it will hit about 1,152,000 units by closing time on December 31.

So far this year, vehicle sales are up 3.6 per cent over last year when the industry managed 1,113,224 sales of cars, SUVs, light commercials and trucks.

A flock of importers are chilling the champagne in readiness for New Year celebrations as they power towards new company sales benchmarks.

Mazda, Hyundai, Subaru, Mercedes-Benz, BMW, Audi and Porsche are among the duxes of the class of 2015, with all seemingly cruising to record tallies.

With 94,509 sales already in the bag, Australia’s most successful full-line importer, Mazda, just needs to stay upright to beat last year’s total of 100,704 units.

Likewise, Hyundai is running 3.2 per cent up on last year’s sales rate, and should comfortably zap last year’s company record 100,011 runs.

And while it was a race to the finish between these two great 21st century

rivals last year, Mazda seems to have Hyundai’s measure this year, with a healthy 8000-vehicle lead, according to official VFACTS data to the end of October.

German luxury car manufacturers are also humming along nicely, with Mercedes-Benz up a solid 15.7 per cent and BMW up 13 per cent.

Despite getting caught up in the Volkswagen diesel scandal, Audi is speeding towards its 11th consecutive record annual tally, this time above 20,000 units for the first time.

Last month, Audi sales eclipsed those of BMW – 2030 to 2001 – although a good many of Audi’s sales came from the run-out A4 sedan.

Proving the economy is travelling well in the top end of town, Porsche sales are up 66.6 per cent or 1482 units, and growing. It has already crunched last year’s 12-month tally of 2812 vehicles, with 3706 vehicles done and dusted to the end of October.

Subaru and Kia are also marching to glory, with Kia eyeing 30,000 sales for the first time.

One-time Australian manufacturer Mitsubishi is having its best year as an importer, with sales climbing 9.1 per cent. With luck and a fair wind, it should whistle past the 70,000 mark by the end of December.

But not everyone in the industry will enjoy their Christmas break so much. Last year’s industry star, Jeep, is finding the mountain a little harder to climb this year, with sales down 12.9 per cent.

It can look forward to a boost from its new baby, the Renegade, but with just 21,583 sales in the first 10 months, Jeep will need to get a move on to replicate the 30,408 record set last year.

The so-called Big Three car-makers, Toyota, Holden and Ford, all have a little red ink on their sales tally spreadsheets this year.

FULL STORY: CLICK HERE

Record sales tally in sightWith two months to go,new-car market on trackfor all-time record result

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 est.0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000Australian new-vehicle sales

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Source: VFACTS

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By IAN PORTERA CHINESE-OWNED company has been established in Australia to build an array of vehicles, initially buses, powered by an advanced lithium-ion battery claimed to have significantly better energy density than existing designs.

The company, Brighsun New Energy Pty Ltd, has outlined plans to start producing electric buses here early in 2016, and claims to have secured significant orders for buses to be exported to China.

It is currently looking for suitable premises, but has found that none of the sites used by Holden, Ford and Toyota will be available after those companies cease car manufacturing.

The company is planning to make a portfolio of vehicles, including buses, trucks, cars, light rail vehicles and even marine products.

Explaining the unusual plan to export back to China, Australian chief executive Allen Saylav said Australia had some advantages.

“We chose Australia because Australia is going to be losing three of the major automotive manufacturers, and there will be available resources for us,” he said.

“The resources will be people, the market and the government support.”

Mr Saylav said Australia also

enjoyed a high reputation in China for setting and maintaining high standards.

“We like the Australian brand. Australia is regarded very well throughout the world, especially our standards. We have the highest standards for automotive regulation throughout the world,” he said.

“That will give our product much more credibility, even throughout Europe.”

Mr Saylav drew attention to the side-crash testing requirements under the Australian Design Rules, “requirements which Europe and the USA do not have”.

“In China, when something’s manufactured there, those standards don’t apply and, hence, the product does not have the durability and the quality as what we do.”

At a launch event late last month, the company released the results of independent local tests done on its prototype 12.5m-long route bus and its touring coach. The tests were done by

mechanical engineer Shane Richardson, who works for Delta-V Experts.

The tests showed that the Brighsun route bus covered 811km on a single charge while the touring bus covered 1004km on a single charge.

Mr Saylav said Australia would be the world headquarters for the Brighsun bus company.

“We already have an office in America, and by 2017 we want to put two manufacturing plants in the USA. We already have one in negotiation in Malaysia, and that’s probably on its way as we speak,” he said.

“We (also) want to put one in Europe somewhere, probably the Netherlands.”

Brighsun is currently operating out of three Melbourne sites, two in Sunshine and one in Campbellfield, where it is conducting testing and development on four prototype buses.

FULL STORY: CLICK HERE

Electrified bus kicks offChinese company’s bignew Australian venture

Brighsun’s bold move

Brighsun Group chairman Kejun Huang andfederal environment minister Greg Hunt

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COFFS HARBOUR HYUNDAI’S TIM ORR SECOND IN WORLD SKILL OLYMPICSBy TERRY MARTIN

COFFS Harbour Hyundai technician Tim Orr has placed second overall in the 11th Hyundai World Skill Olympics held in South Korea late last month.

Mr Orr and fellow master technician Matthew Adamo, from Harrison Hyundai in Melton, Victoria, represented Australia at the five-day event at Hyundai’s Cheonan Technical Training Centre, competing against 82 other technicians from no fewer than 54 countries.

Mr Orr took silver next to gold medallist llya Khlystov from Russia, while Mr Adamo took silver in the engine systems category.

Held since 1995, the biennial competition comprises practical evaluations of engines, electric devices,

chassis, automatic transmissions and other components, as well as a written exam.

The overall aim is to improve the practical and theoretical knowledge of Hyundai’s service centre technicians, which should in turn improve customer service satisfaction, as measured by the company and independent research bodies such as JD Power and Associates.

“The whole event was massive,” Mr Orr said. “It was awesome seeing teams from huge nations like the United States and China.

“I can’t remember much about how I felt on the podium other than getting the medal hung round my neck. I just couldn’t believe it was happening.”

The two Australians were selected

to represent Hyundai Motor Co Australia (HMCA) after finishing at the top of the national competition held earlier this year.

The pair also undertook motivational training ahead of the global competition, which Mr Orr described as the “make or break difference” for them when performing under pressure.

He also said he received an unexpected bonus in the challenging MDPS (Motor Driven Power Steering) practical test, in which contestants were required to fix a simulated problem.

“While working out the overall problem, I fixed what was to have been a second part of the task,” he said. “So I effectively fixed two problems in one move. I was happy about that.”

FULL STORY: CLICK HERE

Tim Orr

NEW DESIGN ERA FOR HYUNDAI AS DONCKERWOLKE RISES TO CHALLENGEBy TERRY MARTIN

HYUNDAI is paving the way for a new era of design at the South Korean automotive powerhouse with confirmation last week that former Bentley design director Luc Donckerwolke will head up its newly created Prestige Design Division.

Although to officially start mid-2016, the Belgian designer is believed to have been offered the job prior to his official resignation from Bentley on June 4, and has since begun work on the new fully fledged Genesis brand alongside Hyundai Motor Group president and chief design officer Peter Schreyer.

Together, the two former VW Group

design heavyweights will craft a new family of vehicles that will see Hyundai Motor compete head-to-head with the best from Europe and Japan in the same

way that Infiniti represents the pinnacle of Nissan, and Lexus does likewise for Toyota.

However, Mr Donckerwolke’s appointment also places him in line to succeed Mr Schreyer as overall head of Hyundai and Kia design, should the 63-year-old German designer retire in 2017

– as has been widely speculated – when his contract comes up for renewal.

Mr Donckerwolke, 50, reportedly described the opportunity to take Hyundai to new heights as an “offer

of a lifetime” around the time of his departure from Bentley, having overseen design at the hallowed Volkswagen-owned British brand since 2012, working on key new models including the forthcoming Bentayga SUV.

He was previously head of advanced design for the entire Volkswagen Group, and in prior assignments was head of design for Seat, Skoda and, from 1998 to 2005, Lamborghini.

At Lamborghini, he was responsible for the award-winning designs of the 2002 Murcielago and 2004 Gallardo, and worked with Walter de Silva on the 2006 Lamborghini Miura concept.

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Luc Donckerwolke

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GoAuto New Car Diary

John Mellor’s

Nov 11, 2015 Page 32

GoAuto New Car Diary – brought to you by CarsGuide

NOVLAUNCH FULL NEW CAR DIARY: CLICK HERE

The mid-size Optima helped turn around Kia’s brand perception in 2011, and now an all-new version, headlined by a GT Turbo variant, arrives this month to reclaim some sales in the dwindling segment.

BMW 7 Series

Hyundai Santa Fe

Kia Optima

Lexus RX

Mazda MX-5 2.0L

Mini Clubman

Nissan Navara variants

Range Rover Evoque

Mini is trying again with its Clubman, but this time it’s pitched against the Mercedes A-Class and Audi A3, and offered with four traditional passenger doors instead of the rear-half ‘Clubdoor’ of the old model.

Market demand to determine fate of 308 R Hybrid as Peugeot mulls performance rangeBy DANIEL GARDNER

PEUGEOT is looking to increase the presence of its driver-focused Sport-branded vehicles, and the boost to the performance Pug profile could result in a saucier variant for each model range.

The French car-maker has already confirmed that a GTi version of the 308 small hatchback will join the smaller 208 GTi and RCZ sportscar, but with a continued rollout of the Sport banner, Peugeot’s global marketing and communication director Guillame Couzy believes a hotter version of every model “could be” possible.

“Because we already have 208, now with 308 so we don’t put limits at this stage,” Mr Couzy told GoAuto at the recent Tokyo motor show.

“At Frankfurt we presented the 308 R Hybrid, which is developed by Sport engineers but electric engines and 500 horsepower. There is no limit to our imagination.”

When asked if the vicious 299kW concept could evolve into another Peugeot Sport production model, Mr Couzy said it was a possibility.

“We don’t know yet but we are studying

it very seriously because we have seen the reaction to this car from customers and social networks so we think it is an interesting car and we are keeping on studying the possibility,” he said.

Mr Couzy explained that a production 308 R Hybrid was possible from a technical point of view, but that customer demand would decide the vehicle’s fate.

“It’s technically possible because we have already done it but we need to see the business case,” he said. “Obviously, it would be very interesting in terms of image for the Peugeot brand.”

While a hotter version for each model is a possibility, Mr Couzy explained

that a new standalone sports model was out of the question and future high-performance vehicles would be approached in a similar manner to German premium brands.

“Standalone no, because globally we want to capitalise on Peugeot Sport knowhow and history in order to bring image to our brand,” he said.

“I would say we are more in a strategy like Mercedes-Benz or BMW, which is: we call our engineers from Peugeot Sport to work on our very sporty versions but we want them to be full Peugeot and bring spirit to the brand.”

FULL STORY: CLICK HERE

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308 R Hybrid