The top automotive stories of 2009 | CarAdvice

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The top automotive stories of 2009

By John Cadogan |
FIND DEALS

There was no shortage of automotive news in 2009. The Australian market looks like falling about 100,000 units, down to about 918,000 sales this year from 1,012,164 in 2008  (it’s worth remembering that 100,000 cars is a line of traffic that stretches halfway from Sydney to Melbourne).

But the local slug just doesn’t compare to the one that’s taking place overseas. The market in the United States fell from 16-point-something million to about 10 million. The ‘missing’ 6.5 million cars, if you could find them and line them up, would be a traffic jam stretching from Sydney to Perth – seven lanes wide. So that’s a massive slug for the car industry.

This hit, together with government incentives, meant China overtook the US to become the world’s biggest car market in 2009.

The recession is the canvas upon which all the other top automotive news stories is written. Yet it’s not all doom and gloom.

Ford makes a profit

Shock! Ford surprised the market by posting a $1.1 billion net profit in the third quarter of 2009.

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In the US the company managed this by getting its product range right – consumer reports say the company’s quality is up there with Euro and Japanese cars, and the company also enjoys more IIHS ‘Top Safety Pick’ awards than Honda or Toyota.

Volkswagen overtakes Porsche

After an epic stoush, which at times saw Porsche’s David about to get the upper hand on Volkswagen’s Goliath, Volkswagen will subsume Porsche. Ousted Porsche CEO Wendelin Wiedeking, almost pulled off the coup of the decade, borrowing $17-billion to finance the purchase of options equivalent to a 51 per cent stake in VW, but couldn’t stump up the cash to exercise the options, and the house of cards collapsed. Goliath won.

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This is all part of Volkswagen’s grand plan for world domination that sees the company on pole position by 2018, overtaking Toyota to become the largest car company on earth.

China becomes the new automotive superpower

The numbers – at least in forecast – are in: The Chinese will buy almost 13 million cars in 2009 while the USA will manage to purchase ‘only’ 10 million. It’s a done deal. Just two years ago, before the recession, forecaster JD Power predicted it would take until 2025 for China to overtake the USA. What a difference a global financial crisis makes.

In the spirit of ‘show me the money’, US billionaire investment guru Warren Buffett used 2009 to take a massive shareholding in Chinese electric car maker BYD, which expects to sell electric cars with a 400km cruising range in the US in 2010.

Hyundai shifts into top gear

Swimming against a massive downward trend globally, Hyundai managed to post double-digit growth in many markets. Amid the doom and gloom of the US, Hyundai grew its market share from 3.1 per cent to 4.3 per cent in 2009 – and an extra 1.3 per cent of a 10-million-unit market is a tidy acquisition, thanks very much. US sales grew by more than 20 per cent, so did sales in Canada, which topped 100,000 units for the first time.

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In Australia we keep getting press releases like these: “Hyundai Drives Past 60,000 Units” (Dec.), “Hyundai Sales Up +106 per cent for Highest Ever October Sales Result” (Nov.),  “Hyundai Achieves Highest Ever September Sales Result (Oct.), (Ditto August), and “Hyundai Moves to No. 4” (August), etc.

Currently Hyundai’s Australian sales are a shade over 59,000 vehicles for the year to November 2009. That’s a surge of 41.6 per cent. In a down market.

The government incentives to ABN holders here run out on December 31, 2009, and the economy emerges from recession, and neither of these is especially good news for Hyundai, when Toyota looks in its rear-view mirror, the company it’s most concerned about seeing right up against its rear bumper is Hyundai. (This won’t happen for some time, however – Toyota currently sells three times as many vehicles as Hyundai.)

The Internet becomes unstoppable in automotive communications

Forget radio and TV – and especially print. The web is where people go when they want to be informed about cars, now. The Chevy Volt’s chief engineer Andrew Farah found himself tweeting 140-character answers to anyone who posed them at the vehicle’s unveiling.

One of the first things GM did, post bankruptcy, was launch a new ‘ask Fritz’ website which invited the public to pose questions and comments direct to CEO Fritz Henderson.

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When GM chairman Ed Whitacre ousted CEO Fritz Henderson and took the top job for himself, it was Facebook that offered alternative comment in the face (literally) of the traditional bland PR department commentary and stony silence. (A person purporting to be Fritz’s daughter Sarah let rip in an expletive-heavy rant on the GM Facebook page. It was pulled down after 15 minutes, but not before the news had proliferated throughout the web. It’s still online today.)

One no longer has to wait until the Friday motoring supplement in the newspaper for informed automotive commentary (or the monthly on-sale date of a specialist magazine). With the internet, automotive news is now.

The internet has changed the way information about cars is presented, it’s changed who can comment (and how effectively they can be heard), and the traditional mediums are worried.

A death in the family makes Toyota the world’s new number one … then the big T hits a wall

When the old GM declared bankruptcy, Toyota moved by default into the number-one global spot. And then the GFC really hit. After decades of steady growth and profitability, the development of a devoted customer base, strong resale values and unquestioned quality, sales plummeted. Massive losses – billions of dollars, the first losses in decades – and production cuts were the order of the day.

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Participation in Formula One was unceremoniously dumped. Then a former top in-house lawyer alleges the company is engaged in compensation claim cover-ups. Massive safety recalls didn’t help the ‘unquestioned quality’ reputation built up over decades of smart marketing. A family dies at high speed when an accelerator jams, the emergency services conversation is recorded … and 3.8 million vehicles are recalled.

Adding insult to injury, Volkswagen is now nipping at Toyota’s heels for the number one spot, about eight years ahead of schedule.

General Motors and Chrysler emerge from bankruptcy

Billions of US taxpayer dollars are devoted to the rescue packages for GM and Chrysler. The bail-out took place mid-year, and the bankruptcies were among the shortest ‘Chapter 11’ proceedings in US history.

Fiat and Chrysler are now joined at the hip, and technology will soon flow between them – hopefully to the betterment of both brands. Fiat itself is no stranger to tiptoeing around bankruptcy, managing narrowly to avoid it earlier this century. But it’s Fiat that owns Chrysler, not the other way around. Italy will call (and is calling) the shots. This could be interesting for Australia, where Chrysler products (the Chrysler, Dodge and Jeep brands) are imported by a factory owned company (Chrysler Australia) while Fiat’s products (Fiat, Alfa Romeo and Ferrari) are imported by a third party (Ateco Automotive).

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GM has a board full of federal government control and chaired by former AT&T (telecommunications) boss Ed Whitacre. At the time of writing, Ed W is busily rearranging the deckchairs – ousting CEO Fritz Henderson after hiring a new chief financial officer. Saab is already Chinese, and brands like Pontiac and Saturn have simply disappeared. Against this backdrop, it still looks as if nobody at GM really has his eyes on the ball labelled ‘sell Saab’. Every time a suitor presents for the troubled GM-owned Swedish car brand, the deal falls over. One can only wonder how bad the buyer’s terms and conditions can be, when the company’s preferred option appears to be winding the brand up. (GM is the biggest foreseeable reason to stay tuned to automotive news reports for 2010, by the way. This story’s not over, by a long shot.)


 

  • Baddass

    I wonder if Citroen is going to sue the company of the bottom right badge in the 4th pic. The Chinese are getting quite good at modifying copyright designs to make them their own, but this is one step too far.

  • Technofreak

    Great read that! puts it all into perspective :) thanks!

  • Bavarian Missile

    yep got to agree, an interesting read .

    Quote ” In the US the company managed this by getting its product range right – consumer reports say the company’s quality is up there with Euro and Japanese cars, and the company also enjoys more IIHS ‘Top Safety Pick’ awards than Honda or Toyota.”

    Nice job Ford, seems your starting to get it right in the USA finally ,and a profit to boot.

    Quote ” Massive safety recalls didn’t help the ‘unquestioned quality’ reputation built up over decades of smart marketing. A family dies at high speed when an accelerator jams, the emergency services conversation is recorded … and 3.8 million vehicles are recalled.”

    Hard luck Toyota but thats what happens when you get arrogant,and VW too look like passing you as No1 8 years ahead of schedule…….got to be happy with that.

    As for Hyundai,they have been the quiet achievers for some time and justly deserve the recent accolades they have received,its only going to get better for them.

  • TheMan

    Great article

  • Whitbomb07

    What I would like to know is what is a Hyundai Genesis Coupe (pity its only LHD) doing at Cessnock Aerodrome?

    I mean come on Hyundai…… Cessnock! You’re so much better than that! Then again you might have been trying to give the locals a lesson in class :p (This is brought to you by the letters T, I and C)

    BTW CA guys I tried sending you a link to a story (via the contact us) but haven’t seen it come up, so I’ll post a link here and hope it’s noticed.

    http://www.hyundai.com.au/Hyundai-most-carbon-efficient-volume-auto-brand/default.aspx

    Regards

    Whitbomb07

  • Old CarAdvice Reader

    I think it’s great to see that Ford made a profit this year despite the circumstances like the recession and all that. Also their safety rating across the range is about 5-Stars which is fantastic too. I hope it stays that way for Ford globally and extincts “sinking ship” claims about the company. One thing I also got to say that this decade has been filled with everything and now it’s time for the 2010s. Have a happy new year and happy new decade.

  • Shak

    Nice story and all but it is all false. 2010 hasnt happened yet know has it CA? You guys really need a better proofreader.

  • Wheelnut

    Yes Toyota pull out of F1 only a couple of months after saying that they were “committed” to the sport for at least the next 5 years. Thing is they have also said that they are “committed” to [Production in] Australia. Mmmmmmm……

  • Alex Lammie

    Saab Community Fights Back with

    iwontbuyfromgm.com website

    The purpose of the site is for people to declare to GM that if Saab is closed down, rather than sold, then those people signed up will not consider the purchase of another GM vehicle in the future. It is to let GM know that people are watching what happens here. If they wish to keep these people as even prospective customers, they should do the right thing and sell Saab rather than close it down.

    • Frenchie

      Unfortunate for the workers,but Saab only sold 90,000 vehicles (world wide). That is less than one of our small auto makers produce in one year.

  • http://caradvice glenmack

    who cares how many cars were sold this year, and who cares whick company sells the most.at the end of the day,when its time to sell they are worthless

    • spellbound

      so true and especially all the fords and hyundais

      • Robin Graves

        Crummydore and Craptiva are the worst resale but you’ll always find some ignorant redneck who’ll buy it for the badge. Actually the Craptiva has OK resale value but who’d want to buy one of those lemons?

        • Wheelnut

          The main reason Commodores resale is so low is because there are so many of them on the used car market as people trade them in on the new VE Commodore.
          Not because they are unreliable or anything; the fact that there are so many 20-25 y.o Commodores on our roads shows how good their longevity is.. but because so many [image conscious] people these days feel as though they must have the latest model

          As for the Captiva – in October it was Australia’s best selling compact SUV.. which means that they must be doing something right in order to beat the likes of the Kluger Territory and Forester doeesn’t it?
          BTW – don’t be surprised if Daewoos design and build quality gradually improves..just like Hyundai have done over the past 10 years.

        • Bent 8 Brigade

          Does your Holden hate bile really have to infest every single article on this site Robin Graves? Take a day off for everyone’s sake

          • Robin Graves

            I used to be a loyal Holden fan, in the ’80s when Brock was king. Then I grew up and seen that they were making rubbish cars, with a few exceptions, and people have this blind loyal faith for no particular reason. They are 20 years behind in most of the tech they have, with the exception of engine management – which is top notch and nearly as good as Bosch. Just look at engines, trans, suspension – all 20 years behind. Valiant and Ford had 12 port cylinder heads decades before holden did. BMW and Nissan had IRS 30 years before Holden. The best Holden made was the VL, and it had a Nissan engine and trans! And the rednecks booed Richards for winning Bathurst in the Skyline, which had the same bottom end as the VL they drove home! I’m sorry I cant help myself, if Holden decided to make a decent car then I wouldnt have anything to complain about. As for Daewoo, the Cruze is a huge step forward, but thats not saying much when you look at the crap Daewoo were making. The only way I see they can catch Hyundai is if they dont have some arrogant yank idiots pulling the puppet strings.

          • Wheelnut

            Robin – I think you will find that [the Core of] Holdens Engine Management System is supplied by Bosch as I suspect is the case with most of the other major car manufacturers.

            The engineers then work with Bosch to tweak it and make it more suitable for the car which it will be used in.

            The other thing is that you say “if Holden decided to make a decent car then I wouldn’t have anything to complain about.”

            Yet the VE has been getting rave reviews from a number of respected international motoring journalists who have driven more cars than you or I have/will. even when compared to more fancied more expensive rivals from Europe

            It has also won the Middle East COTY and Sheiks aren’t known for having fairly high standards and not wasting their money on inferior quality products aren’t they?

            So even if you don’t particularly like Holden – as an Australian and as a Car Enthusiast you should be proud of what Holden have managed to do given their limited resources and budget etc

          • Robin Graves

            Yes I should have clarified, I was referring to the Delco engine management, which was phased out a few years ago in favour of the Bosch system, but the Delco system was very good for its time. All the reviews I have read on the VE say its OK for the price, but still has a lot of flaws. I’ve been to Dubai and Abu Dhabi a few times and its only the povos that own Luminas and Caprices, you wouldnt catch a Sheik driving one, and they love wasting money! Its their favourite pastime. The only Aussie vehicle I have driven worth any form of pride is the Falcon Turbo, as its the only truly Aussie engine and its smooth, torquey and efficient, everything the Alloytec is not. The Holden V8 does go very well, but pushrods should have been left in the ’70s – the AFM is a joke and the trans sux. Then we go back to the IRS which is from a budget ’70s Datsun. ’69 240Z had a better IRS system than a 2009 Commodore. No toe problems, not as much camber change. Just needed an upgrade to the R200 Nissan diff and the late model CV style driveshafts which came in the late ’70s

  • mark

    I bought a new 2004 Mercedes E270, my Spanish number plate is 2814CSD, I have many electrical problems. It is the worst car I ever had before