Toyota’s Australian operations safe – for now | Car Advice

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Toyota’s Australian operations safe – for now

By Matt Brogan |

Despite the doom and gloom of Toyota’s current economic status, including global operational losses of $1.7 billion forecast over the next six months, Toyota says it has no current plans to cut jobs in Australia.

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Japanese media says falling sales and a climbing yen will lead to the company’s first interim operating loss since 1999 forcing the company to lower its earnings forecasts (October to March period likely to cut Toyota’s full-year profit by 80 per cent).

Unlike many other car manufacturers that have reduced job numbers, Toyota with strong Middle East exports, the production of the Hybrid Camry and a well-managed Australian operation should avoid any downturn locally.

National secretary of the Australian Manufacturing Workers Union’s vehicle division Ian Jones has welcomed the news saying,

“I think Toyota have got a good plan for Australia,” he said. “They are a very well-managed Australian operation. I don’t think they will experience the same problems as the other (carmakers).”


 
  • Matty B

    Even Toyota aren’t immune to the crunch.

  • JasonP

    Well, well, well!

    Maybe they should stop wasting billions in Formula 1, & return to profit.
    They’ve had zero results bar a couple of lucky podiums.

    And why are they in Nascar? I don’t recall any Camry running rear drive, with a pushrod V8 up front.

    At least their motorsport in Oz is minimal, except for a low key rally effort.

    You’d think at the premium prices Toyota charges in Australia, ( and I assume everywhere else), that they’d be able to get a decent return.

    Not to bash them further, but they’ve gone from record profits to a nearly $2 billion loss in a very short amount of time.

    Still, nobody benefits if a major car maker goes under, or starts to lose big chunks of money.

    Great time to buy a car; even whitegoods with wheels.
    :-)

  • Matty B

    Make no mistake, Toyota won’t go under, but it just shows that everyone is feeling it.

  • nameless

    “Great time to buy a car; even whitegoods with wheels.
    :-)

    Thats exactly what I would have thought! My mate went to buy either an i30 or a lancer last week, and all the dealerships he rang claimed that prices were only going to increase next year!! I told my mate to keep haggling for a better price but he ended up not even getting free on-road costs (I thought that would have been a given if you held out long enough…) He ended up going for an i30 SX, getting it for 21,700.

  • Glen

    Nameless, even in times like these car dealerships still need to make a profit and hyundai have very slim profits as they are

  • Sam

    21,700 is only 200 shoy of a new corolla….or a nicely specced Jazz for that.

  • Sam

    oops shoy = shy

  • Myke

    Damn… would have been a good time for them to go away :D

  • HSV

    21,700 could have gottan a nice secon hand HSV clubsport

  • Duck

    ^^^^^^^What series?

  • Bavarian Missile ( . ) ( . )

    Quote \”Great time to buy a car; even whitegoods with wheels.
    :-)

    hahaha, do they do scratch and dent specials?

    I want one with the box cause thats more fun to play with!

  • http://australiancaradvice McKay

    Toyota has been profitable every year since 1999 and the past 7 years have recorded profits between $16.5 & $19.0 billion.

    Last reporting period they reported $16.97 billion which is more in one season then what GM, Ford and Chrysler will recieve in bailout dollars combined.

    As for why is Toyota in F1, i guess because they can and in NASCAR they had a blinder of a season in 2008 winning 2 of the 3 Manufactuer Titles.

    I guess considering the fact that the BIG 3 have been mega unprofitable for several years with GM reporting a $40 billion loss in a single quarter alone last year i ask why are they still competing in NASCAR when they should save the money and then atleast be able to beg the tax-payer for that much less instead.

    Come to think of it, Holden and Ford haven’t returned a profit in Australia for quite some time either so why bother investing in the Australian V8 Supercars when they should save the extra dime until they are profitable again … if they are ever profitable again.

    The differance between Toyota and the American BIG 3 is clear, Toyota has it’s own money to spend on what they like while GM, Ford and Crysler need everybody elses money to stay afloat which means luxuries like any form of motorsport should be canned because soon it’s not going to be thier money they are blowing in the wind but that of the tax payer, A BIG DIFFERANCE

  • http://integra Archie

    HSV…..a Clubsport? my god…..what a waste of money at any price !!!! lol lol

  • http://integra Archie

    Toyota will eventually scale down production as the Camry\Aurion piece of crap is selling much…..only a matter of time.

  • Adam (aka Mada)

    Mckay,

    Ford made record operating profits in the mid to late 90′s and? so?

    While Ford and Holden were making money in AUS, Toyota AUS was loosing money for years, and? so?

    Could you please show me the link or the source for the profit figures you claim Toyota has made?

  • http://australiancaradvice McKay

    The Camry / Aurion duo sell in enough numbers that it is positioned between the Falcon and Commodore which is a good combined effort.

    However, Toyota has an export agreement that is greater in numbers then Holden while Ford Aust. basically doesn’t have one at all.

    And then there is the leaner operations to consider.

    Toyota Aust. employs about 4700 people to build between 145 000 – 150 000 vehicles per year while Ford employs about 5 500 to build a little more then half those numbers while Holden employs 6000+ to build about the same as Toyota.

    Finally, Toyota benefits from cost reductions associated with building a global platform (Camry) while Holden and Ford get slogged with the added overheads associated with indigenous vehicles.

    Toyota Australia is in better shape, and leaner which is better for business in times like now.

  • http://australiancaradvice McKay

    Adam : i am glad you asked because i only just recently as in say a few days ago was searching for reported profits for our local car industries.

    Holden and Ford have both reported losses for several years although Holden’s last loss was 6 million compared to about 80 million the year before so that was a good improvement but still a loss.

    Ford Aust. reported a $84 million dollar deficit.

    Toyota Aust. is doing OK for themselves but they will be affected in coming reports with the gaining yen against the Ozzie dollar which will errode profits from imports but subsequently will improve profits on the Camry and Aurion sold overseas such as the Middle East.

    Toyota Aust. has been profitable for the past few years and for 2005/2006 reported approx $55 million in profit, beefed that up to $186 in 2006/2007 and for the 2007/2008 period reported a little more then $230 million.

    My source came from Business Review Week but other sources have confirmed the same so by all means check it out if you don’t believe me but it is TRUE.

  • Tyson

    Lol,

    Aurion/Camry not selling… get your facts right…

    Toyota is one of the only manufacturers in the world not in debt! thats why they have there own finnace devision lending to the consumer!

    good to see a company playing smart buisness!

  • Adam (aka Mada)

    Mckay,

    Could you please to prove to us all where you obtained profit figures for toyota??

    The employee numbers, does that take into account both Ford and Holden having design and engineering facilities that Toyota AUS lacks?

    The VE is NOT an indigenous platform, it’s a global large RWD platform.
    The FG is a unique platform.
    Do you also know that if Toyota AUS didn’t have the large export program they currently have that Toyota OZ would be unprofitable.

    It appears you are fudging some of your information…

    Units sold, operational size, company profit would put Ford OZ as the most efficient.

    Do you alos understand that when such a large program like the VE and FG launch that they will make a loss as the luanch costs are taken into account.
    Toyota Oz never has to spend as much on camry as it’s not a locally designed product, it’s simply a locally built product, developed overseas with a few engineering changes to suit local tastes.

    Also remember that the aurion is not a class leader, that would be the FG.

  • http://australiancaradvice McKay

    Tyson : you are correct. On another local (Australian) car site they have printed an article on the impeeding loss to be reported by Toyota for the next 6 months but they went on to describe the mega cash reserves Toyota holds and their super low debt ratio.

  • Adam (aka Mada)

    Mckay,

    You claim certian profit figures for Toyota, so prove it?

  • http://integra Archie

    Didnt realise there were so many Japanese people on this site!! They sure love their white goods cars !!

    Oh……Toyota just made a 1.7 billion loss ……..the worm has turned!!

    Ford HAVENT asked for money to survive….only GM and Chrysler which will be broke in a few weeks. GET YOUR FACTS RIGHT PEOPLE

  • http://integra Archie

    Toyota has a false reputation as a trusted company. They have pulled a few nasties on the Australian public in recent times. Remember the Avalon? They told everyone it was a “NEW” car. It was actually a 10 year old model when it came here ……and it looked and drove like one too !! Then there is the “ALL NEW AURION” ……..they are joking !!! The only all new thing on that car is the name !! They GAME has changed they told us……..surely it was a misprint…….it should have read….”The NAME ” has changed……….

  • http://australiancaradvice McKay

    Adam : how is there fudging of the figures if that’s how it stands, maybe you just don’t like the statistics so try to put a curve ball spin on them instead but eitherway it doesn’t change thier individual stance.

    Of course Holden and Ford have more employees because of thier greater local R&D but at the same time isn’t that what has come under increasing pressure over the years due to the greater overheads associated with such localised programs especially in an ever increasing tightening market.

    Ford Oz is by far not the most efficent as they employ between the numbers of Toyota and Holden but produce / manufactuer not much more then half the annual numbers of Toyota and Holden which subsequently are indentical not to mention the increased overheads associated with the indigenous platforms of the Falcon, Territory and 4.0 L6.

    With Ford reporting the greatest loss of the 3 (Toyota, Holden and Ford) and all the other issues identified, how is Ford the most efficent ??

    I would like to hear your explanation as opposed to the obvious as outlined.

    To me, it seems you are trying to fudge fiction with non-fiction were Ford Aust. is concern but by all means feel free it it pleases you but regardless, please bare in mind it doesn’t change the leaner economic stance of the 3 local producers.

    As for saying the Aurion is not a class leader, it depends what you consider because as far as i concerned it has class leading quality, probably prove to have class leading reliability, the most refined drivetrain and defantly the most economical.

    Considering the Aurion is still the first carnation of it’s type and without an update as of yet while the FG is an all new release, i believe the Aurion holds it’s own and guaranteed to only improve and get better with subsequent upgrades and new models.

  • http://integra Archie

    Just remember all of you Toyota lovers…….Japan is in a recession too…….and how quick the mighty can fall in situations like this……so I wouldnt be opening my mouth too far if i were you because things can change very very quickly.

  • Dlr1

    Archie, the site is not called fordandholdenadvicedotcomdotau. There are plenty of euro lovers around too, and a few korean ones as well (i dont know why though).

  • Adam (aka Mada)

    Mckay,

    Can’t prove your Toyota profit figures, what a surprise.

    Ford Oz doesn’t NEED exports to be profitable, Toyota Holden DO.

    Holden and Ford don’t JUST assemble vehicles locally liek Toyota.
    You made the claim that the commodore was indigenous, still stand by that?

    Take a look at thier individual profits per year for the last 10 years and you will see Toyota OZ isn’t in front.

    The FG has been judged class leader by the majority of the Oz motoring media, not from one single personal opinion, like yours.

    bare in mind i drive ALL makes and models ALL the time, including the aurion and falcon.
    Guess what, the aurion sucks as much juice as the falcon, don’t kid yourself into thinking it’s so much more fuel efficient!
    Also the FG was judge as quiet as the aurion, Fg has better handling and gearbox with the ZF.
    Quality? I’ve driven plenty of aurions that have rattles and loose trim, no different to a VE or falcon.

  • http://australiancaradvice McKay

    Archie : Holden has pulled more nasties then anyone else in this nation with claims of being Australian when they are 100% American owned and the Commodore being Australian but if my knowledge serves me correct, with exception to the VE – all or most ‘dore models have been just a little extra then rehashed / localised Opels.

    Adam : I just provided you with a relavent referance not to mention can be found easily on the net with a little help from google.

    I believe you have an issue with the truth so play games instead but by all means be cowardly if you so desire but eitherway it doesn’t change anything.

    Being lazy to invest some energy to familiarize yourself with some basic local knowledge of our car industry and then attempt to camoflague (spelling) it in a manner you did is a true low way of saying … ” i didn’t know that ”

    So much easier by just admitting you didn’t know it but now you do !!!!!!!

    What’s wrong with that ??????

  • realcars

    Toyota will survive because of the thousands of people that won’t buy anything else regardless of the ordinary product they spit out.Many of these people are automotive half wits and will accept paying through the nose for vehicles that are average in most respects. Also they believe that Toyota has superior resale which is another Toyota myth.

  • realcars

    McKay u know nothing.Show me an Opel even similar to a VZ Commodore? That’s like calling a Lexus a Camry.LOL.

    Best stick with your Toyota mate and all the marketing bullshit that goes with it.

  • http://australiancaradvice McKay

    Adam : if you carn’t prove the Toyota profits then you are not trying, a little half-hearted i guess.

    I found them with a little patience and relative ease.
    So why do you have a problem ???????

    As for your claims against the Aurion, i guess we can all say any ‘ole thing on the net, what’s stopping us !!!!!!!

    Archie : every economy of the world with exemption to none rotate through booms and busts. It has always been such away and it will always be the same but the differance between survival and death of companies depends solely how they are managed during the good and bad cycles.

    Most Japanese companies are managed positively during both but it appears the American trio managed themselves so poorly during the good times that the brakes have been well and truely applied with vigour during the not-so-good.

  • Adam (aka Mada)

    If i spit profit figures out, like you have done to try and make an accurate, so called relevant point, i’d be able to show where my figures came from.
    If it’s so easy to find, post them, simple.

    You were wrong about commodore being indigenous, why should i believe your unproven figures?

    You aren’t right about aurion either…

    Like i said i drive these cars for real unlike many who comment but never drive them.

    I do have an issue with the truth, as you can’t prove figures you put forth as fact.

  • Wheelnut

    One thing that could influence whether or not Toyota does eventually leave Australia is the fact that they build the Camry and the Aurion sedan here yet they build exactly the same car in Japan and the USA.

    Which means Toyota may consider closing the Altona plant and move production to Either Japan or the USA..

    I mean one of the reasons GM and Ford are having financial problems is because they have a number of plants in the USA operating at less than 70% capacity building exactly the same car or very similar [apart from the grille etc]

    Whereas Holden for Example build the VE Commodore Sedan Ute Wagon and Statesman here. a RWD car which is uniquely Australian with a flexible platform.. and GM are using Holdens RWD espertise in other GM models – the Camaro

    As I have said before – The fact that Holden were given money to build an all new Australian designed/built car ebven when they were in a worse financial situation than what they are now shows how important Holden is to GM
    Whereas by Toyota Oz having to build a replica of a car thats available elsewhere in Toyo-world instead of being able to build an RWD sedan here gives you an idea what Toyota-Oz means to Japan.

    I would have loved Toyota to have made a RWD sedan here. They’ve got the money resources and technology to do so and it would have increased their range; given them a car to help them break into yet another new market; and a more direct rival to the Falcon and Commodore.

    Tom Phillips wanted to make the Magna RWD but was knocked back by Tokyo. They were forced to take a car based on a similar car from the US and look what happened to Mitsubishi….

    My point is un-necessary duplication or replication of cars in this day and age not to mention the current economic climate isn’t a good thing.
    neither is having a range of similar sized cars with similar specifications/features etc which use uniquely individual parts specific to a particular model.

    Platform sharing and part sharing is the way to go – the Porsche VW Audi group is a perfect example of this

    Develop centres of expertise – Holden is GMs Centre of exertise in relation to RWD cars.. What expertise [Research and development etc] does Toyota Oz provide Toyota?

    Note I don’t want to see any of the loval manufacturers leave Australai.. I am just outlining a possible scenario. The Article says Toyota oz is safe for now whereas GM have said they will be Holden onto Holden.

  • http://australiancaradvice McKay

    Realcars : if you exhibit no understanding that previous Commodores have been little more then sprucked up Opels then i must say, i am truely amazed by your challenge.

    What ever you do next, pleased don’t tell me you are a Holden man then claim you know nothing about the DNA of Opel and all Commodore models up to but not including the VE.

    Ordinary .. i guess that best describes Holdens range of the Korean Daewoo.

  • realcars

    MacKay Aurion realistically will always be the poor cousin as it is FWD for the same money Ford and GMH give u RWD.

    Hence Aurion is a lot cheaper to manufacture but they still ask Commodore/Falcon money for it.

    Even Toyota acknowledges RWD is the better setup but u have to pay Lexus prices to get RWD in a large Toyota.

    Really goes to demonstrate the value offered by the Commodore/Falcon.

  • realcars

    MacKay what Opel is the VZ Commodore based on?

    VB Commodore had a Rekord shell but everything else was different i.e from the HZ including some suspension components and the entire drivetrain etc.That was the first and original Opel based Commodore and subsequent models have evolved from that.

    So there hasn’t been a direct Opel relative to the Commodore since the late seventies.

    Come on I mean we may as well say that most Lexus use the Camry platform which isn’t all that flattering if u think about it.

  • Matty B

    Adam, do a quick search on Google and you’ll find from several sources that the figures McKay stated are pretty much on the money.

    2006 – $40.3 million loss
    2005 – $148 million profit
    2004 – $192 million profit
    2003 – $154 million profit
    2002 – $20 million profit
    2001 – $5.5 million loss
    2000 – $16 million loss

    This was found on a caradvice article from 22nd of May 2007. And I have also found figures to back up the 2007 report of a $84 million loss.

    All this goes to show, no matter how strong things look anyone can fall. Cause I guarantee no one would of thought that 2006 would of been nearly $200 million turn around from 2005.

  • Matty B

    Also from caradvice 18th June 2007

    2006 – $146 million loss
    2005 – $144 million loss
    2004 – $300.8 million profit
    2003 – $285.6 million profit
    2002 – 256.5 million profit

    “All is not bad however, the profit/loss life cycle is a common occurrence when a new Falcon or Commodore is introduced.”

  • Adam (aka Mada)

    Mattyb,

    Who’s figures are those?

    Mckay posted figures for Toyota globally.

    Have yet to see the source for those figures.

    What i’d like to know is, why Toyota can’t design and produce locally a large RWD vehicle that can handle dynamically and have a 5 star crash rating??

  • Matty B

    Sorry, those were Holdens figures

  • Adam (aka Mada)

    Mattyb,

    I completely agree about the profit/loss cycle, thats my point.

    While Holden and Ford were posting healthy profits locally, Toyota AUS was posting losses.

  • http://integra Archie

    McKay……i have driven both the “ALL NEW AURION” and the FG …….i would say that the materials and fit and finish of the FG are equal to if not above the Aurion\Camry. Switch feel and ergonomics are easily better in the FG. The FG also has a strong body feel about it on rough roads and when pushing along through corners, something which the Aurion cant get close to matching. Fuel economy of the Aurion is also mis-leading. Real world economy i feel would be in favour of the FG which has surprised alot of people with it excellent economy in ALL conditions, not just highway driving. And dont worry……many many Toyota vehicles have been on the back of tow trucks so dont go on about their so called reliability……..they have lemons like eveyone else.

  • Golfschwein

    Realcars, I’ve always wondered, can you interchange a VT-VZ front door with an Opel Omega? Wheelnut? Someone?

  • Matty B

    Cause it wouldn’t be profitable. Toyota are doing a resonable Job at beating the locals. If they tried to take them at their own game I don’t think they’d capture the market.

    Holden and Ford do have a niche market so to speak, there’s a certain market they appeal to with their large RWD sedans (and other variants, utes, wagons). The cost of development and possible return Vs. risk for failure don’t add up.

  • Adam (aka Mada)

    Toyota AUS local profit/loss figures?

    Mckay should be posting those as he made those statements, just back up what you claim…
    Thats all i ask.

  • http://australiancaradvice McKay

    Wheelnut : you can type a ten page essay if you so wish but it doesn’t change the basic fundamentals or current returns (profits) of Holden, Ford and Toyota in Australia.

    Altona (Toyota), Elizabeth (Holden) and Broadmeadows / Geelong (Ford) all satisfy a position within the greater organisation of thier respective parents and at the end of the day they either return a profit or add (losses)to the burden if company economics are not so bright.

    You claim the Camry being manufactuered in Australia is nothing more then a local post for a global platform which may be true to a point but true global vehicles such as the Camry dont just meraculously (spelling) appear in mid air ready for sale, they have to be manufactuered somewhere and Altona just happens to be apart of the global Camry pie with the Aurion adding a twist.

    Judging by reports i have read, Altona happens to manufactuer the second highest grade Camry’s in the world behind Japan while being one of the more efficent operations.

    I guess Toyota announcing the Hybrid version will commence local production from 2010 suggests thier intentions to be around longert hen what some are prepared to give credit for.

  • realcars

    Now far do u want to go back MacKay?

    Nissans and Toyotas were originally based on BMC designs.

    Original Toyota Crown was a mish mash of early BMC and Benz mechanical design.

  • Adam (aka Mada)

    Mattyb,

    Thats why Holden, Ford and NOT Toyota have local design and engineering bases for the asia/pacific region.

    Ford AUS isn’t going anywhere, they have product plans that include local assebly and operations.

    If thier existence here made no business sense, they would simply do what Toyota AUS does now.

  • Matty B

    I think Ford will always build a falcon in Australia, the only problem I see is Ford Motor Company cutting development funds so they have no choice but to go use technology and parts from with in the group.

  • realcars

    Credit where it is due Toyota did popularise Twin cams ans multi valves and Got Holden to sell the Apollo and Corolla equivalent with GMH badge which introduced a whole generation of Holden buyers.

  • Frontman

    It is getting very hard to keep quiet on the Toyota front, but people please note that Toyota IS not travelling as nicely as it projects. The truth will come out in the wash.
    Also as for the Australian operation, firstly they do have an R&D centre of excellence here in Aust, but it is more of a tunning and modification centre. The strange thing is that it doesn’t get included in their P & L’s (apparently) so if they spend 20 mil in R&D then it doesn’t come off Australia’s bottom line. Unlike Ford & Holden (remembering Holden basically picked up the tab for the ZETA platform that was designed to the US requirements then all but canned for the global platform).
    As for all the ney sayers about Australian vehicles being reduced in sales, The Global market is down 20%, and the three Australian manufacturers are all approximately the same figures down for November. Bad product and planning or just a sign of the times?

  • Matty B

    You’re right Frontman, Ford, Holden and Toyota are all building the vehicles the vast majority of people want them to build. They’re also building cars to a price.

    Let’s not pretend like the Motor Industry should be immuine to the crunch.

  • http://australiancaradvice McKay

    Adam : i am not going to bash my head against brickwalls aka yourself.

    Realcars : the more you type the more i understand how little you understand and at the same time you probably call yourself a Holden man.

    I really wonder !!!!!!

    Archie : time will tell but judging by history all the way up to the BF2, i now were my confidance stands.

    Matty B : i am glad you admitted those were Holden figures as Toyota Aust. figures for the past 3 years don’t even closely mimmick those.

    Sorry people but the more i discuss the topic with some of you the more i relise i am talking to turkeys. I guess characters on the net are either ‘with it’ or just ‘full of it’ and i am certain gaining a stance with this site.

  • http://australiancaradvice McKay

    Adam : by all means, Ford and Holden’s local R&D involvement over the coming years could just as well become much less then what it is today so don’t be over confidant with your statements. Times are changing and changing fast and right now, Ford and GM are in no position but to accept money from the public purse just to meet thier next payments.

  • nix

    Frontman Commie sales have been declining for the last 10 or so years, they used to do 90,000 – 100,000 units locally, thats been halved. The Falcon has also been hit hard.Mate if they can’t sell them in good times whats going to change in a recession, the price apparently :)

  • http://australiancaradvice McKay

    Realcars : make no mistake of it, unless Holden and Ford operations in Australia become alot more steamlined, efficent and thier parent companies indentify lasting and solid exports, they will gradually dwindle to much less over the years. Take GM as the latest example with the imminent repositioning of the Pontiac brand which will most likely end the G8 in the States not that it has sold overly well anyway.

  • http://australiancaradvice McKay

    Nix : spot on

  • nix

    just as an aside the 380 did about 10000 units in 2007, those sales are now being absorbed by the remaining 3 big cars, VE is down 15%, Aurion is down 11% and the falcon is holding its ground from memory. For those that follow monthly numbers the first 6 – 7 months of this year looked like it was going to be a boomer again, and apart from the falcon the big cars were dropping sales. Don’t jump on the last 2 months bandwagon, look long to mid term for trends, its not good news, and its been obvious for a while!

  • Adam (aka Mada)

    Wow, couldn’t back your profit statements up statements up.
    Nothing more than irelevant ramblings.

    Now you claim Ford Ford is asking for public money?? where?
    GM and Crysler are asking for a Goverment LOAN, like many auto companies are around the world, so Toyota AUS won’t take a share of our public money? The green incentive.

    And we are the turkeys?

    Get ya hand off it!

  • Wheelnut

    Quote [Frontman] – Holden basically picked up the tab for the ZETA platform that was designed to the US requirements then all but canned for the global platform.

    The Zeta Platform wasn’t canned – it’s the platform that the VE Commodore Sedan Ute and Wagon etc is built on. Watch the Billion Dollar Baby D-V-D or read the book “Autobiography” [by Peter Robinson]; for all the background info on the VE project.

    The Alpha Platform on which the TT-36 Torana concept car is based and was developed by Holden however; has been canned in favour of the “Global” mid-sized platform on which the new Opel Insignia is built as it can take
    FWD RWD and AWD.

  • RoFlmaTiC

    Adam

    If you look at finance.google.com and put in “TM” as the code it brings up the financials of toyota.

    In the 07 / 08 financial year it made a profit of 1.7 trillion yen. In the 06 / 07 financial year it made a profit of 1.64 trillion yen.

    When converting back using the exchange rates at those times you can see that the figures McKay gave are actually true.

  • Adam (aka Mada)

    Nix,

    And camry/aurion sales?

    Yeah they are rising…

    Lucky the aussie dollar is dropping otherwise Toyota exports would be in the red, again…

  • RoFlmaTiC

    So now might be a good time to apologise to him Adam…

  • Adam (aka Mada)

    mckay was talking about Toyota’s global profits, how about Toyota’s local profits for the past 6-10 years??

  • Adam (aka Mada)

    Ask Hertz rentals who they use as thier prefered vehicle supplier…

  • RoFlmaTiC

    Well given the 16-17 billion dollar profits in the financial years ending june 07 and 08, surely a small 200 mill profit in its Australian operations isn’t that much of a stretch?

    I will have a search later… I’m supposed to be working right now :D

  • Adam (aka Mada)

    apologise? for what, i asked for proof, thats all.
    I still don’t see Toyotas local figures.

  • nix

    “VE is down 15%, Aurion is down 11% ” Adam I did say all 3 big car makers are in trouble…Read the whole post.

  • Adam (aka Mada)

    My point is for the past 6-10 years Holden, Ford and Toyota’s local profits are all very similar.

    When you consider that Ford relies on local sales only and NO LHD exports, they are pretty damn lean…no matter how you spin it.

  • Adam (aka Mada)

    Nix,

    You had posted your last response after i had posted mine, i didnt get to read yr latest post!

  • Golfschwein

    What’s that yukkie smell? Is it someone’s arse being roasted under the Commonwealth Broadcasting Services Amendment Act?

  • Wheelnut

    Quote [Frontman]: Also as for the Australian operation, firstly they do have an R&D centre of excellence here in Aust, but it is more of a tuning and modification centre.

    So its NOT an R&D centre as Toyota Australia merely take a car which someone else has doen all the design and testing for than make a few changes to try and get it to suit a different environment.
    They don’t have a state of the art design studio in which they can create concept cars let alone a completely new car from scratch like Holden did with the VE and Ford do with the Falcon

    Holden and Ford can virtually design and build a car from Go to Whoah whereas Toyota just add the finishing touches and a coat of polish

  • RoFlmaTiC

    Adam (aka Mada) Says:
    December 15th, 2008 at 6:03 pm
    apologise? for what, i asked for proof, thats all.
    I still don’t see Toyotas local figures.

    Did you overlook Matty B’s post above?

  • nix

    Adam Ford do a pretty good job, have in fact held their market share in OZ this year, all three OZ manufacturers have problems, and the recession certainly isnt going to help solve those.

  • Adam (aka Mada)

    I must be blind!

    I don’t see Toyot’a local prfit figures dating back 6-10 years?

  • nix

    “They don’t have a state of the art design studio in which they can create concept cars let alone a completely new car from scratch like Holden did with the VE and Ford do with the Falcon” This is holdens and fords problem, dev costs in a shrinking market. Globally the answer is reduced platforms, less is more so to speak. Nothing wrong with the cars, its just that their on there own in a shrinking market.

  • Adam (aka Mada)

    Nix,

    I agree. ALL autos are in for a bumpy light in 2009.

  • Adam (aka Mada)

    ride..

  • http://australiancaradvice McKay

    Adam : i was talking Toyota Australia profits all along.

    As for Toyota worldwide profits, they have been profitable every year since 1999 and the past 7 straight years of that they have returned anywhere between $16.5 – 19.0 billion with the last reporting period for 2007 / 2008 being $16.97 billion.

    2008 / 2009 looking much less but still in the black which is better then being in the red like the American trio have been for so long.

  • Frontman

    On the other side of that coin though, McKay, is the fact that Broadmeadows and Clayton are the design management centres for Ford Asia Pacific. Hence the Indian Fiesta Sedan, T6 Focus production down here with the possibility to spawn a “Backie” for the sooth afrecarns and a few other models to be looked into.
    Holden are still regarded highly for their design input in vehicles such as GM-DAT Captiva and others.
    The biggest selling point on all the Australian R&D centres is value for money.
    As for the Ford being “in no position but to accept money from the public purse just to meet thier next payments.”
    Unfortunately not quite correct. Ford was only looking for a line of credit to make suppliers feel more comfortable. Ford has the reserves to make the changes needed and see throught the market situation without selling Volvo, the remaining stock in Mazda or government money. It’s just that the line of credit would make everyone it deals with more comfortable. If I wanted you to commit to me, you would feel more comfortable doing so if you new that the government had promissed me enough money to pay you if things went bad, correct? That’s what Mullaly is looking for.

  • RoFlmaTiC

    02/03 10 mill aud
    theage.com.au/articles/2003/06/05/1054700334789.html

    03/04 67 mill aud
    theage.com.au/articles/2004/06/18/1087245116983.html

    04/05 56.7 mill usd
    just-auto.com/article.aspx?id=74192

    05/06 54.9 mill aud
    smh.com.au/news/business/profit-idles-as-toyota-gears-up/2006/07/20/1153166518047.html

    07/08 242 mill aud
    goauto.com.au/mellor/mellor.nsf/story2/0ECA7051FA8ED011CA25748E002B937E

    All the above results are profits.

    Oh and my mistake, I thought Matty B’s post above was toyota figures, not holden.

  • http://australiancaradvice McKay

    Adam : i am beginning to think you can not see anything.

    RoFlmaTic : i like you, on the ball with your figures. Keep up the good work.

    Toyota Aust. profits of $230 odd million compared to Toyota’s global take of $16.97 billion during the 2007 / 2008 period is chicken feed i agree but still returned goods is better then no goods.

  • Frontman

    nix Says:
    December 15th, 2008 at 5:52 pm
    In those last 10 years, the traditional vehicles have declined because the choice has grown exponentially (spelling) we have today, over 250 different types of motor vehicles to chose from in Australia. Our market has only grown by approx 200,000 cars, so that means that they have to be spread further and thinner.
    ————————–
    Wheelnut Says:
    December 15th, 2008 at 5:59 pm
    Sorry what I meant was that it was to be the platform for a raft of new RWD US vehicles, not just the underpinnings of Camaro and Caddillac. But CAFE laws put paid to that.

  • Wheelnut

    Quote [McKay]: Realcars : make no mistake of it, unless Holden and Ford operations in Australia become more steamlined, efficent and thier parent companies indentify lasting and solid exports, they will gradually dwindle to much less over the years. Take GM as the latest example with the imminent repositioning of the Pontiac brand which will most likely end the G8 in the States not that it has sold overly well anyway.

    The Operations of Both Ford and Holden are much more streamlined efficient and productive than most of [if not all] of their factories in the USA

    In the USA both GM and Ford have a number of plants that are relatively close to each other both operating at less than 70% and both building virtually identical vehicles and in some cases the factories are dedicated to building a particular type of car Sedan Coupe or Pick Up even LHD or RHD which is one of the reasons they are losing money.

    Whereas the Holden Factory for example has the flexibility to build a Sedan followed by a Ute followed by a Wagon etc Not tomention LHD and RHD cars all on the one line.

    Plus the new Skillet System which was installed at Elizabeth for the VE has increased output improved build quality and reduced the number of worlk related injuries all of which have an impact on the bottom line

    The operations in Australia have to be streamliend and efficient becaus eof the size of the local market we don’t have the room let alone the money to have a “dedicated” factory in each state like they do in the US

    Both Holden and Fords parent companies muat think that the Local operations are viable given that – Ford reversed the decision to axe the [powerful and reliably efficient] I6 and the Zeta Platform which the VE is built on is being used in other GM projects

    As for exports.. expect GM to start building LHD Commodores [which will be badged as Chevs when Pontiac is gone] in Canada along side the Camaro once initial demand for the Camaro dies down. This will then give Holden the capacity to start building a medium/small sized car here; given that Ford Oz will be building the Focus in 2010.. or perhaps RHD Camaros.

    The reason the G8s not selling well at the moment is because of the economic Downturn not because its an inferiro quality car – far from it… visit a number of USA Auto blog sites and you will see it has established a considerable supporter base.

    Infact before the economic downturn in the US there were [on average] 6 trucks loaded with G8s leaving the Factory in Adelaide for the Port every hour.. and some dealers in the USA were selling them as quickly as they arrived or had 2 month waiting lists.

  • Andrew M

    WOW,
    some stuff has gone on here today……..

    one thing i caught was someone picking on the commodore sales slide

    was a thought ever cast that its still the sales leader???
    if the quantity of commodores being sold equates to them not being able to seel them, what does that say about the rest of the market that is placed behind the commie.

    sure all round sales increased during the “boom time”
    but a hell of a lot of the “boom” sales were recorded amongst segments that had a lot of new comers join the roads. one very clear example is the SUV class

  • Andrew M

    why are global profits of one company being compared with domestic figures of another??

  • Frontman

    Adam (aka Mada) Says:
    December 15th, 2008 at 6:02 pm
    Ask Hertz rentals who they use as thier prefered vehicle supplier…
    At a price that was $3,248.62 less than what they could be supplied an Equivalent BF2 Falcon for (Sportivo Vs 4spd XR6) do you blame them?

  • Wheelnut

    Quote [Andrew M]:
    was a thought ever cast that its still the sales leader???
    if the quantity of commodores being sold equates to them not being able to sell them, what does that say about the rest of the market that is placed behind the commie.

    Very true Andrew…. particularly as the majority of cars in the top 10 are imported.

  • http://. Naughytius Maximus

    Crikey…………the Big T being the end all and much heralded leader being on top for ages and what have we here = the big can be hit harder then rest! LMAO

  • http://. Naughytius Maximus

    Do agree the FG shytes all over the Aurion for touchy feelie and quality! SHAME TOYOTA LUVERS SHAME FOR NOT DEALING WITH REALITY AND BEING LOST IN YA BUBBLE WORLD THINKING TOYOTA WILL ALWAYS BE NUMBER 1 AND MORE SUCCESSFUL THEN REST = you stoooooges!

  • nix

    Andrew all 4 locally made cars in the top 10 sellers in OZ, and they are mostly good cars. Ten years ago Holden and Ford had 40% of the TOTAL OZ market, now they are just over 20%. Needless to say the falcon and commie was the backbone of that success. Look at it this way, Toyota outsells them both now days.

    Yes there is a much bigger choice available to we consumers, and yes, the number indicate we are choosing to buy non OZ produced cars. You hang your hat on the basis that the VE is the best seller in OZ, and it is, but when combined falcdore sales drop from 190,000 units to 85,000 units perhaps that clarifies things a little further, in an expanding market as well btw.

    Wheelnut thank you for your contribution as to why BIG car sales are declining, see, you did know the answer :)

  • realcars

    I don’t wonder about u MacKay.

    U obviously worship at the Toyota Altar.LOL

    I love how Toyota puts a positive spin on declining sales then lays the boot in to the other local manufacturers.

    At the end of the day Holden and Ford design and build the Falcon and Commodore for the most part for the Australian market.

    Toyota offers the Aurion with inferior FWD dynamics and as a result is significantly cheaper to manufacture as well as having it’s developed costs shared with overseas variants including Camry produced for a world market.

    Al things considered Holden and Ford make a mighty fist of it producing such good cars given the circumstances.

  • Wheelnut

    Big car sales may be declining [steadily] however there will always be those who want/demand/prefer a large RWD 6cyl or even a V8 sedan like the Commodore.. Just as there will always be those who want a Pick Up Truck

    because there will always be those who want the power handling and space etc that only a Falcon or Commodore can provide – particularly when a family of 4 go on a holiday with all their luggage etc

    Large Cars mightn’t remain a mainstream vehicle but become more of a niche market like the premium luxury performance vehicles

    And no I am not comparing an Aston Martin to a VE SS just using them as an example as they are a Niche market given that demand is lower than that of a Ford Focus etc

  • http://australiancaradvice McKay

    Wheelnut : please don’t put quality and Commodore in the same sentance because it doesn’t belong. The VE has been everybit a quality and reliability issue that every other model has been recognised for previously not to mention i can list a dozen or more common faults associated with the VE straight of the cuff without thought.

    Every report and comparison i have read related to the VE have questioned the quality of the ‘Dore not to mention what goes without mentioning the aweful V6 drivetrain that is ultimately the worse choice in it’s segment.

    With exception of the VE being a tidy handler and some ‘bang for your buck’ choices from HSV, that however is pretty much where it begins and ends were for the VE

    As for Pontiac, it’s name has been tarnished / trashed for many years which is why the G8 was invoked in an attempt to boast the reputation of the brand but even before the current down-cycle took hold, the G8 failed to record sustainable sales from the beginning.

  • nix

    “Large Cars mightn’t remain a mainstream vehicle but become more of a niche market like the premium luxury performance vehicles”

    And what, they are going to build them here? Are you serious?

    Somewhere there is a cut off point where its pointless to continue manufacturing, I don’t know, 30000 units, 20000 units..

    One of these 3 big cars has to go, that’s going to be interesting :)

  • http://australiancaradvice McKay

    Realcars : i believe the Aurion makes a mighty fist of it’s own even in it’s first carnation. I guess expected facelifts and new models to arrive over the coming years will make lads like yourself wonder what Toyota will do next.

  • http://australiancaradvice McKay

    Maxiumus : i guess Toyota proved to the world that GM wasn’t always gonna be No.1

    I believe VW recently proved Ford wasn’t going to hold onto the No.3 mantle for to long either.

  • Andrew M

    Nix,
    the diminished share for ford and holden can be blamed on the increase in motoring choices.
    We are all spoilt for choice.

    Retail in general is stuffed. Nothing like what it used to be 10 years ago.
    I know they love to chant on about it on the news when they see a little boost, but dont believe that, retail is stuffed.
    Once again a heap of the blame can be attributed to the wide choices we have in where we can shop.

    The councils think its all well and good approving fancy new shopping developments, and current centres expanding,(mind you they get their cut) but noone stops to think there is only so much patronage to go around.

    in my area alone there has been 2 massive new centres built in the last 2 years with one supposed to become the largest in the southern hemisphere, plus 3 others have expanded.

    What im getting at is its quite simple to explain how someones market share will diminish when a shopping choice increases

  • nix

    “What im getting at is its quite simple to explain how someones market share will diminish when a shopping choice increases ”

    Makes sense, so explain Toyota’s increase in market share in that time. That would be from about 13% to almost 24%.

  • http://australiancaradvice McKay

    Andrew : here is another perspective.

    Holden and Ford’s collective efforts once totalled about 50% of the Australian market but today thier collective actions not only equate to less then 25% but less then Toyota’s lone effort minus Lexus, TRD and Hino Trucks.

    Next question to beg is why are they having nil luck in enticing the once Holden or Ford buyer back to thier brands ?????????

    But then again, when you have a look at Holden i guess it really isn’t that complicated to puzzle it together after all.

  • http://australiancaradvice McKay

    Nix : you make a good point !!!!!!!!!

  • Andrew M

    Nix,
    well when you look at it, ford, holden and toyota all fit the model i described.

    toyotas range increased, holden and particularly fords range decreased. ford was without a small, light and medium car choice for quite a while. Only now are they picking that up. The thing is though, now those buyers have deflected elsewhere

  • http://integra Archie

    McKay…..we were told the Aurion was an All New Car….it isnt !! Its a Camry V6 with a new name…….Toyota smoke and mirrors once again !!

  • facts

    Ford Global

    Market cap ▼ US$ 6.3 Billion (December 2008)[1]
    Revenue ▲ US$ 172.455 Billion (2007)[2]
    Operating income ▼ US$ 5.296 Billion (2007)[2]
    Net income ▼ US$ -2.723 Billion (2007)[2]
    Total assets ▲ US$ 279.264 Billion (2007)
    Total equity ▲ US$ 5.628 Billion (2007)
    Employees 87,700 (2008)[3]

    GM Global

    Revenue ▼ US$ 181.122 Billion (2007)[1][2][3][4]
    Operating income ▼ US$ -4.390 Billion (2007)
    Net income ▼ US$ -38.732 Billion (2007)[5]
    Total assets ▼ US$ 148.883 billion (2007)
    Total equity ▼ US$ -37.094 billion (2007)
    Employees 266,000 (2008)[6]

    Toyota Golobal

    Market cap ▼ USD $171.88 billion (2008)[2]
    Revenue ▲ USD $262.39 billion (2008)[2]
    Operating income ▲ USD $22.61 billion (2008)[2]
    Net income ▲ USD $17.15 billion (2008)[2]
    Total assets ▲ USD $323.97 billion (2008)[2]
    Total equity ▲ USD 118.47 billion (2008)[2]
    Employees 316,121[3]

    Read what you want into.

  • http://australiancaradvice McKay

    Facts : thanks for that, good reading.

  • RoFlmaTiC

    That total equity for GM is now -60 billion :D

  • RoFlmaTiC

    With respect to GM, to put things in perspective, all you need to ask yourself is whether YOU would lend GM money right now.

    That my friends, is why any government assistance to GM is not the answer.

  • topdog

    All i can say is go the falcon we should be proud of it.Its the only ozzy car left that has a ozzy engine built here and fitted to ozzy car all other cars have imported engines in there ozzy cars.Im so glad ford choose to continue with this engine for us.And its the best car on the market in its model line up

  • mack

    IT HELPS WHEN YOU ARE GIVING THEM AWAY HYDE, CHEAPER THAN AN EPICA :)

  • Falcodore

    Toyota do have a design centre in melbourne, thats how they came up with the re-hashed v6 camry (aurion) which is not exported, mckay.
    The Pontiac G8 sedan is safe but according to Left Lane News the ST (ute) is on shaky ground.
    The fact of the matter is Toyota is looking at a 1.7million dollar loss and profits to be down 80%.Fudge facts and figures all you like ppl, this is reality.

  • Andrew M

    Nix,
    I had to duck off and didnt get to touch on the other factor in the market swing.

    Toyota has gone out all guns blazing chasing down market share by signing up the fleet market wherever they can.

    Holden on the other hand (and ford too) declared they dont want to attract the fleet market as much as they once use to. Holden doesnt cut the fleets the super deals they once used to. Quite a few fleets went to toyota who were and are cutting the deals.

    The other noted mover is VW. VW is now chasing down fleet sales in order to move up the sales podium. The other mover is Hyundai. Even hyundai is starting to make an apperance on fleet books now!!!

    Whoever holds the #1 sales award is heavily backed by fleets whether its holden or toyota that holds the gong.

    And a side note to all that, or should i say a question relating to that is what does the sales number count for??

    Some people seem to forget that 99.9% of us are on the consumer end of the stick.

    Im sure you must have fun impressing your mates with your fancy new toyota. instead of “popping the hood”, do you instead pop the glove box to pull out a slaes declaration certificate??

  • http://australiancaradvice McKay

    Falcodore : indeed, fudge figures as much as we like as it detracts nothing away from GM, Ford and Crysler being reliant on the public purse for survival while Toyota has mega-wealth in reserve.

    Jeykel : most Commodore buyers are 80 – 84% fleet which means only 16 – 20% are counted as private sales.

    Andrew : in reality with your head pulled from the sand, approx 80 – 84 % of Falcon and Commodore sales are fleet accounted and that doesn’t include fleet sales of the rest of their fleet.

    I believe it is about time you started suppling reliable information instead of winging it for once.

  • http://australiancaradvice McKay

    Andrew : i don’t agree with you and believe you are distant from the actual truth.

    Fleet is only a single segment of the entire industry and if you are able to successfully tap into every or most categories like Toyota has excelled at then i guess one can only expect a strong position

  • http://integra Alloys

    drive down the Geelong\Melbourne road and you will see acres and acres of unsold VE Commodes……this is why they are closing the factory for another month. Add to this the 11,000 VE Pontiacs in the USA …….mmmmmmmmmmm

  • Grammar Nazi

    I’m not getting into this one. I’ve got important things to do, like sorting out my socks into pairs.

  • James

    reading a lot of stuff here, basically just ensures one thing.

    Some people argue with figures and numbers, (facts)

    some argue using their preferences….

    and btw

    Toyota’s R&D/ Engineering center here is 4 years old…. and as other Toyota R&D/Engineering centers around the world… work together on global platforms to ensure compatibility globally…. now if you know the benefits and advantages of that approach… you’d see why Toyota is doing better than others..

  • Wheelnut

    You’re lucky Grammar Nazi that you have socks you can put into pairs… I’m always left with a couple of singles left over – I think the washing machine eats them

  • Dlr1

    Yes this whole blog topic socks

  • Bret

    McKay Says:
    December 15th, 2008 at 8:19 pm
    “Realcars : i believe the Aurion makes a mighty fist of it’s own even in it’s first carnation”

    Umm, the V6 Camry is NOT in it’s first incarnation, it is quite a few generations old. Renaming the car does not make it a new car!

  • Golfschwein

    I saw that and roared, Bret. A carnation is a flower, like a nasturtium. Do not cast nasturtiums on Mckay’s (Dingo’s) intelligence.

  • Frontman

    Golfschwein Says:
    December 16th, 2008 at 6:31 pm
    What’s with the (dingo) reference?? Sorry but have seen it several times on posts and feel like I’m being left out??

  • Falcodore

    Take fleet sales out of the equation and the most popular car in the country is…..drum roll….. the Mazda3. Thats a fact people. Yes, in the private sector where all of us ‘car enthusiasts’ reside the humble Mazda3 sits atop the podium.
    Hopefully that will make all you who are either Ford, Holden or Toyota fans see some perspective….hopefully

  • Golfschwein

    Having the most popular “private” car in the country won’t help Mazda win the Grand Final, Falcodore. You need every player in your team for you to win.

  • Bret

    Falcodore,
    Thats old news that everybody knows. But it only applies to new car sales. Many people prefer to buy “near new” and take advantage of ex-fleet savings.
    All these arguments that fleet numbers don’t count because they don’t equate to real people is just wrong.
    What do you think fleets would do with all of their old cars if “real people” didn’t but them?
    So whilst “fleet” may be to companies first, they all go to private buyers in the end.
    It’s realy all about total volume.

  • Falcodore

    Bret, agree with you on that as my sister bought an ex-fleet car but the article wasnt refering to ex-fleet cars so i dont think Toyota was taking that into consideration filed this press release.

  • Falcodore

    Should have said “when they filed this press release.’ sorry

  • RoFlmaTiC

    I just did some quick calculations.

    It takes 3.5 weeks for GM to lose 1.7 billion dollars :D

    They are losing money at an average rate of $52000 USD per minute.

  • Andrew M

    McKay,
    i was asked for some reasons why toyota saw growth in sales, and holden saw decline sales.

    2 reasons i presented are,
    (a) toyotas range increased, and holdens decreased and

    (b) toyota went after fleet sales aggressively, and holden backed off them

    they are both relevant.
    im not one to say fleet sales dont count, what i did was provide 2 reasons which are TRUE, and both reasons could be reflected in each of toyotas and holdens sales to show the sales outcomes that we see

  • http://australiancaradvice McKay

    Andrew : Holden and Ford still rely heavily on fleet sales particularly for the Commodore and Falcon with approximately 80% of sales for these cars derived from fleet.

    Toyota boomed for many reasons including a strong and diverse fleet, popularity in many / most categories not just fleet, reputation and of course the resource boom which is fueling the sales of commercials. The Hilux being the sales king for 2 months this year is a prime indicator.

    Eitherway, if i am viewing my figures correctly then i believe Toyota is selling more vehicles then total sales of Holden and Ford as one.

  • realcars

    There is something subliminal going on on this blog as I have suddenly gotten the urge to scour the classifieds for a used Aurion.

    Hey Pickles has millions of them.Yipeeeeee.

  • Frontman

    McKay Says:
    December 16th, 2008 at 10:16 pm

    There is also the other side of the story as well, and that is Toyota sales staff are bieng set up to make an income out of Volume bonuses, and not commission as there is naf all profit left in the deals. Where as other franchises are working on retained gross to keep the sales staff income respectable. At a dealership I was at recently, the Ford sales staff deliverd half the numbers of the Toyota staff, yet had a 27% higher income. Guess who has a better retention of staff?

  • nix

    “(b) toyota went after fleet sales aggressively, and holden backed off them..”

    Over that 10 year period Andrew, exactly when did Holden back off on chasing fleet sales? Did you read that in a Holden brochure somewhere?

    The Camry is a fleet seller, no prob with that, the Aurion yes to an extent, but then its only been out 2 years?

    No problem with your point (a), But you have heard of Barna, Epica, Viva and Astra? See a problem there? I do :)

  • Wheelnut

    Quote [Nix] “….exactly when did Holden back off on chasing fleet sales? Did you read that in a Holden brochure somewhere?”

    The fact Holden designed the VE Sportwagon the way they did – with a somewhat smaller cargo area indicates that they are aiming more at private buyers than they are sales reps.

    Then there’s the VE Ute which is marketed as more of a “lifestyle vehicle” than it’s rival; the Falcon which is definitely more of a workhorse.. therefore; less attractive to commercial/fleet buyers – but both of them are still selling reasonably well.

  • nix

    So the station wagon was released 3 months ago, that’s really relevant to the last 10 years. Here’s a tip, stop reading the brochures :)

    Crikey some of you guys make me laugh.

  • Dlr1

    Frontman, don’t confuse dealer decision making with that of the manufacturer. Sales staff are employed by the dealer, not TMCA or Ford Australia. Doubtless most sales staff these days are on far less attractive commission packages than in the past, so volume, no matter who you work for is more important than ever.

  • http://australiancaradvice McKay

    Approximately 80% of Commodore and Falcon sales remain fleet driven and the stats don’t change no matter how you look at it.

    It is still 80% or even a little more this year according to the sources i have read.

  • Wheelnut

    Quote [Nix]: So the wagon was released 3 months ago, that’s really relevant to the last 10 years.

    It is relevant; because it shows that Holden are focussing less and less on fleet buyers; particularly as its the latest model to be released by Holden.

    If Holden were looking to increase the percentage of fleet sales wouldn’t they have kept cargo area [capacity] of the Sportwagon the same size as the VT-VZ models or even made it bigger?

  • Frontman

    Dlr1, I agree that the packages are geared by the Dp’s etc. But they are also geared to maximise the direction the distributor want them to go.
    In the case of a distributor chasing volume, your pay structures roll that way. I remember selling Mazda’s during the 90′s when the coined the phrase, “do the deal teh profit will follow”. At the standard $50 or 10% comms a lot of sales staff swapped to selling Hyundai’s (flat rate $80.00). Same franchise had Mitsu’s and we were making only 80% of target and had around a 30% pump in to our PMA by oterh dealers, got the standard performance letter several times which basically openly stated that because we were retaining twice the state average we were losing sales. Even had the state manager tell us to dicount heavier and sell more cars & we’d be better off?????

  • Frontman

    Sorry about the ramble above, it was meant to show that the dealers are supposed to follow what the manufacturers want.

    Nix, It’s not so much that GM-H & FORD have turned away business, it more that they are not going after it a agressively. EG Hilux Vs Ranger, both built in same country, both competant reliable well proven (if you are brand Biased substitute BT/50 for Ranger) both equally as good vehicles. The 4 cyl petrol Hilux is $1800 more than the Diesel Ranger. Yet afetr Govco fleet discount applied the Hilux is 2k cheaper.. heavier fleet target and over pricing to Joe Public. Hence Ranger in small business and private capacity is outselling Hilux.

  • nix

    No its not relevant, I was talking over a 10 year period, Andrew clearly stated that Toyota was aggressively chasing fleet sales whilst Holden was pulling back. Your only evidence of Holden pulling back is a station wagon with a smaller cargo bay which was released 3 months ago? Like I said, stop reading the propaganda :)

  • nix

    Frontman, point taken re the hilux, tho that’s hardly a passenger vehicle. It owns that segment thoug.

  • Wheelnut

    I also mentioned the fact that the VE Ute is marketed more as a Lifestyle Vehicle instead of a Serious Workhorse like the Falcon.

    Or what about the fact that Holden no longer have a Serious Full Size 4×4 to compete against the landcruiser prado which is a popular choice in the primary industry.. particularly mining

    Holden don’t have a People Mover either [like the Tarago]which is another favourite with rental car companies
    Nor do they have a Commercial Van like the Hiace or Transit and therefore are overlooked by Couriers etc

    All of which buy their vehicles in bulk orders and thereby receive huge discounts.

    Mind you given that these areas are where Toyota is well established there really is no point.

    The only area where Holdens are attractive to Fleets is with the Commodore range which they sell mainly to Government Departments

  • Andrew M

    Nix,
    i read that fleets were a bit upset because holden made a decision not to discount their fleet pricing as much, and hence some were swinging to toyota

    I think it was an article on Drive. Im not too good going through archives etc, but when i get bored ill see if i can dig it up.

    so you agree with my point in toyota increasing their range, and holden (and more so ford) decreased their range..
    you said the same thing in a different way.

    and a third reason is that toyota has stayed true to its name plates.
    the well known names of Pulsar, Laser etc were killed off leaving the rolla as the only real familiar name in the segment.
    Viva??? most people shopping in that class would say whats a Viva