VE Failing to excite buyers.

[adrenaline]

"An expensive Dud??"
News.com.au

HOLDEN'S billion-dollar investment in the revamped Commodore has failed to rekindle Australia's love affair with the iconic model, early sales figures indicate.

The new Commodore - Australia's most lavishly produced vehicle - regained its coveted spot as the nation's favourite car during September, its first full month on the market.

But it still recorded little more than half the monthly sales of its heyday.

A recall of some Commodore models last week for a fuel-line problem, and the collapse of contracted parts manufacturer Iron Engineering, were the latest hiccups to hit Holden.

Holden sold 5262 Commodores in September - 4100 of the new model, plus the dregs of left-over old stock.

That was an improvement on recent lean results, but still well short of regular monthly tallies in the 9000 vehicles-plus range just a few years ago.

The all-time monthly record was set in October, 2002, when 9667 Commodores were sold.

Holden dealers and the company itself fiercely deny the new car is an expensive dud, but high petrol prices and stiff competition may make it impossible to regain its former dominance.

Jim Rutherford, who manages the Federal Chamber of Automotive Industries' sales database, said Holden might have been a victim of poor timing.

"They probably picked the worst possible time to release an eight-cylinder car, albeit a relatively efficient one," he said.

Sales of small cars have boomed in the past year as buyers downsize to more fuel-efficient models.

Ford has announced production cutbacks for its Falcon, the Commodore's traditional rival, in response to a slide in sales of big passenger cars.

Mitsubishi's 380 has also failed to deliver on expected sales, and Toyota last week launched its Aurion V6, another competitor in the large-car segment.

Wayne Pearson, managing director of industry consultants Horwath Motor Industry Services said Holden dealers were "not out there slashing their wrists". Sales had been slower than expected, however.

Mr Pearson said the days of dominant "category killers" like the old Commodore might be over, with consumers slower to commit to new models.

Philip Brook, Holden's marketing manager for large cars and SUVs, agreed buyers were slower to sign up to new models.

Fleet buyers, in particular, were taking time to adjust to the new Commodore, he said.
But Mr Brook said Holden was pleased with the initial response and expected strong results in coming months.

Sales of luxury Commodores were healthy, with waiting lists for models such as the Calais.

I think everybody saw this coming, but only 4100 VE's sold is terrible for a brand new model. Maybe it will pick up in the coming months, but for now it is looking bleak.

[pimento]

I'm still wondering why they don't have the Astra VXR/OPC in as an HSV model to take on the Focus XR5.. something new in a segment of the market that's expanding, rather than pinning hopes on a failing segment and cheap daewoo knock-offs. Doesn't seem like an overly productive market strategy really.

[adrenaline]

Actually they do.

http://www.hsv.com.au/index_eseries....series/vxr.asp

[nota]

I'd recently read about VE's undewhelming initial sales numbers. A principal factor cited was that Holden has with VE reduced its traditional factory discounts available to fleet buyers, which on VZ were 29% iirc! Apparently Holden are shifting their sales emphasis from fleets, to chasing higher profit margins via private buyers. However this is described as a risky tactic at best, as Ford tried a similar thing and failed miserably with its AU Falcon model

Overall, it seems imho that the Govt's decision to reduce import tariffs has delivered the worst predictions that were widely forecast to result from these tariff reductions ..

Holden's VE sales are mediocre
Ford is reducing production and workforce, it longer term future looking vulnerable
Mitsubishi is dead in the water and one step from disaster
Even Toyota's local production would not be viable without exports

Will Australia have an automotive manufacturing industry in ten years?

[pimento]

Originally Posted by ADRENALINE

Actually they do.

http://www.hsv.com.au/index_eseries....series/vxr.asp

Ahh, well... good.

Australia probably doesn't have a hope of being a major production base for automotive parts, when it's cheaper to import them rather than make them them locally, you'd have to be nuts to do it. Just look at England, more and more things are moving offshore - but what remains is the engineering nouce and know-how. That's what should be being encouraged around here, get some proper decision making happening here and such. Hell, we're just not set up for primary production like this. For instance: if you buy gas in the northern parts of WA, it's been mined off the coast to the north, transported all the way down to Perth, then transported all the way back again. Why aren't the processing plants up there? It's a little nuts, surely it's cheaper to process it next to the source and transport it from there.

Well, I don't really know what I'm talking about here, but it seems you're on the money there nota. The industry doesn't really have a hope if the smart economic moves are pushing production offshore as they are.

[nota]

Originally Posted by pimento

Hell, we're just not set up for primary production like this. For instance: if you buy gas in the northern parts of WA, it's been mined off the coast to the north, transported all the way down to Perth, then transported all the way back again. Why aren't the processing plants up there? It's a little nuts, surely it's cheaper to process it next to the source and transport it from there.

Heard recently on the ABC Country Hour than 80% of Australia's total water runoff occurs in the North where it is truly massive, yet a similar percentage of our agriculture is farmed in the dry South

As you said, that's nuts - especially in the world's driest inhabited continent. More than ever we need a major serve of 'nation building' plus a big dose of 'that vision thing' ..

[pimento]

The problem is there's so much room up there, and little more to effectively do with it than either dig it up and try to find things in it, or try to grow things ineffciently and ineffectively. Or get eaten by the wildlife, but that's only fun for so long.

[fpv_gtho]

Originally Posted by pimento

but what remains is the engineering nouce and know-how. That's what should be being encouraged around here, get some proper decision making happening here and such.

Its already happening. Ford are responsible for the next generation Ranger (known as the Courier here since its introduction) and might even have more on their plate. They'll also be adapting Orion for global use now that they'll be involved with other LHD projects.

Holden just finished VE, which US wants and Europe is looking at also. They'd also be first in line if GM decide to go with a small/medium sized RWD platform.

The big problem i see is both Holden and Ford perhaps have their manufacturing plants setup for too high a level of output. Ford manufacture about 100k units a year, whilst Holden do about 150K. Having a look at overseas, Europe has alot of plants which will only do 100K tops. Ford are doing that on just a single shift.

[#3 Tasman Bloke]

If an Australian car that was really anticipated for 1 year was not making sales, it would be the end of the world. If you see the V8 Supercar Championship and if Rick Kelly would win it, MAYBE that would boost Commodore sales. Anyway, if a car was much loved by Bob Lutz it sure would give Holden a boost
If you want to see it go to a good website, maybe www.holden.com.au.

[fpv_gtho]

I dont think people are that shallow

[adrenaline]

Originally Posted by #3 Tasman Bloke

If an Australian car that was really anticipated for 1 year was not making sales, it would be the end of the world. If you see the V8 Supercar Championship and if Rick Kelly would win it, MAYBE that would boost Commodore sales. Anyway, if a car was much loved by Bob Lutz it sure would give Holden a boost
If you want to see it go to a good website, maybe www.holden.com.au.

The end of the world is upon us.

Lutz drove the Commodore and he loved it. He went as far as saying it was the best sedan GM has ever produced.

You also have to understand that the majority of the members that regularly post here in the Australian forums are intelligent people that follow the auto industry quite carefully, especially regarding the VE Commodore. In fact there have been discussions of the VE in these forums for well over a year now. With that in mind, assume that we all know Holden's web address.

[clutch-monkey]

Originally Posted by ADRENALINE

You also have to understand that the majority of the members that regularly post here in the Australian forums are intelligent people that follow the auto industry quite carefully, especially regarding the VE Commodore. With that in mind, assume that we all know Holden's web address.

speak for yourself.

[adrenaline]

Originally Posted by clutch-monkey

speak for yourself.

OK, there are a few exceptions on the point about intelligence (I have an IQ of 43).

[nota]

Originally Posted by fpv_gtho

The big problem i see is both Holden and Ford perhaps have their manufacturing plants setup for too high a level of output. Ford manufacture about 100k units a year, whilst Holden do about 150K. Having a look at overseas, Europe has alot of plants which will only do 100K tops. Ford are doing that on just a single shift.

That's odd because in the recent past it used to be that the opposite held true - for a plant to be viable it needed a critical-mass of 80-100,000 units to be solidly profitable & pay for its future - and especially so for 'one-model car companies' like Ford Oz eg with their unique local product, that shares little componentry including engine/trans etc with any other Ford models ..

[2ndclasscitizen]

Interesting that the last sentence was pointing out that there's a waiting list for a Calais. Seriously, if I read one more "motoring" article from some useless journalist I'm going to scream. Oh no, Commy sales are down on 2002 levels?! All bloody large car sales have been down since then genius.