When will you buy Australian-made again?
June 10, 2009 by Alborz Fallah
It’s not often I’ll write a piece on the car industry as a whole, frankly I’ve only been around for a few years and I’d much prefer to sit back and learn a lot more before commentating. However given the current situation, I felt the need to write something.
Those of us heavily involved in the car industry view the current situation in two ways, some see it as the beginning of the end of traditional manufacturers whilst others, like myself, see this transition period as the best thing that could happen to the industry.
In any normal manufacturing company, enormous time and energy goes in to research and development, the R&D team along with the marketing team are meant to work out what products, in this case cars, is the market demanding and then begin the long process of designing, manufacturing and then marketing.
For vehicles this is generally done several years in advance, new cars that you see being released today were designed several years ago and it takes a long period of time to go from a concept to a full production ready car.
So then, the likes of GM, Chrysler and Ford all had an excuse given the three-four year delays in concept to production. They can say they didn’t see the market trend coming quickly enough.
However, here is where it gets interesting because if any R&D department can honestly say they never thought fuel efficient, smaller cars would be popular, they all need to get fired, although it seems they pretty much all have.
Japanese manufacturers have been setting the trend for smaller cars for decades, so what took the Americans and more importantly what took us so long?
What is Holden going to do given that GM has all but dumped the G8 in North America? Are the Australian sales helped slightly by the shrinking Middle East market enough to sustain the Commodore’s future? Apparently more than $1 billion was spent on the development of the VE Commodore, is there even another billion dollars to spend on the next Commodore?
None of us want to see the Commodore, Falcon or Aurion disappear. These are all Australian made cars and even though they may not live up to our full expectations, we still have that semi unconditional love for them, but just how much longer will that last?
Eventually private fleet managers are going to start realising that the Mazda3 or Toyota Corolla will do just fine and more importantly taxis and government fleets are all slowly going to move away from the big family cars.
So, where now?
Ford Australia will eventually build smaller cars here in Australia and that’s great news. Holden will no doubt do the same in due course. Toyota has somehow managed to convince the federal government to give it millions of dollars to build a local hybrid car it was already going to build anyway, but there is still that lingering question of if the big three can sustain their local production.
General Motors has all but sold Saab and Hummer, two non-performing brands. Holden is lucky to be the backbone of many of GM’s operations so it’s safe for now, however times can change.
The purpose of writing this article isn’t to speculate on the local car manufacturers’ future but it’s because I want to know what Australians want from their local car makers. Why is that we’ve all ran away and abandoned our own for foreign imports (myself included)?
Are Australian cars that far below the standard that we can no longer even consider our own? I talk to so many new car buyers that would have bought a Commodore or Falcon 10-15 years ago but now don’t even consider it as an option.
Brand values have also changed, driving a new Mazda6 is now more prestigious than driving a new Holden Commodore. This is a shift that has taken place over the past 10 years but if local manufacturers are to survive, it needs to shift back.
As Australians we are generally supporters of the underdog, did Holden and Ford get big enough for us to neglect them?
What will it take for you to consider Australian built cars on par with Japanese and Europeans cars?
Can you see yourself going back to an Aussie built car in the near future? Why or why not?
Print it: 
BM: Yep rather not turn this into BizAdvice as well, but yes have dealt with Chinese manufacturers, mainly in textiles. Never had much issues as you have experienced but I guess everyone’s circumstances are different. Just like people’s experiences with car reliability issues with different badges.
HAL Says:
June 15th, 2009 at 3:28 pm
“I’ve seen both of you write comments many times that there are good 2nd hand europeans to be had for $50-60K. In your experience, if I was looking for a M3 or 335i 2nd hand, what is the maximum age and km’s you would consider to be the limit that you’d seriously consider?”
I’d purchase an E92 335i over an E46 M3 (sorry BM!!). Check carsales.com for some great 2007 335i’s for $75K to $80K. Ignore the pricing from those deluded individuals who think the market is the same as last year!!
Nice one, thanks Realist. I could deal with a 2007, so will search around for a good one for the right price.
Cheers.
Australian caras still offer so much v.s japanese etc…
Agree, Holden is lacking in quality. Cwait for VF. Interior likely up for a makeover which hopefully includes better quality inside. Just wait & see. They’ll bounce back especially with their engines they have installed.
Ford. Idk how they have survived with FG. Bringing out a car that looks basically the same as the old isn’t right. It seems they couldn’t be bothered to spend $$$. Interior is better than VE, i reckon but exterior, nope sorry.Engines, a V6 yeah.
Toyota. Who cares. Sick of em. Always on top again & again as top selling brand. There cars are just (F)ugly. Don’t know how they sell. Desperate i think.
Hopefully things pick up soon :)
Wheelnut, your last coment is totally correct. It is the owners fault. I wonder if the owner thinks the car would be bulletproof to?! I mean come on!!!! Lol.
I agree Realist there are very good buys around for 2nd hand Euros with good km`s, I`m very happy buying 2nd hand Euro`s.
I’ve had too many bad Experiences with European cars,I’ll never buy one again.Ever.Give me Jap or Aussie.
Wow, sooooo many comments, I didn’t get to read them all. Well this is my short comment:
I will buy Australian made when there is a small to medium sized car which is very fuel efficient (diesel/hybrid), fun to drive, comfortable, very safe, reliable, ergonomic and above all is uniquely Australian in appearance, in a good way that is.
May be too much to ask for?
One thing we’re missing here is the image issue….
Assume you have 80k to spend on a new car: while you could get a HSV, FPV, Statesmam etc, it doesnt have the same “prestige factor” that a Lexus, BMW or Mercedes has.
To many people, especially trendy city buyers with exposure to international brands, the Holden or Ford has a kind of “bogan image”.
Have just purchased a XR6Turbo. My local Ford dealership in the Northern Beaches was hopeless, had to go out west to get service. Have had a Falcon for 12 years since coming over from the UK, land of the small economical car. All I can say to those Aussies still with the idea that anything that comes from abroad is better – Total Cost of Ownership. An Australian built car is cheaper to insure and service. Parts are readily available and cheap. Yes they use a little more fuel but they are big, comfy, easy to drive and fast. In the long term I truly believe it will cost less to own a Falcon then say a Mazda 6. When family and friends from the UK and Italy experience what I drive compared to their little boxes, all are in agreement that the Falcon and Commodores are the business. I paid $52K for a fully spec’d XR6T on the road, about 24K pounds. Look in http://www.whatcar.co.uk to see what that gets you in Blighty.