The Insurance Institute for Highway Safety (IIHS) has released a video explaining its new frontal offset crash test, following last week’s announcement that the Subaru Forester has become the first vehicle to score top marks in its small overlap front crash test.

Filmed at the IIHS’s vehicle research centre, the video shows how the frontal offset crash test works and explains why the IIHS believes new car manufacturers must start engineering their cars for the limited-contact impacts.

Introduced in 2012, the small overlap front crash test sees 25 per cent of a vehicle’s driver’s side front end strike a barrier at 64km/h, aimed at replicating the impact of a vehicle’s front corner contacting another vehicle or an object such as a tree or telephone pole.

The only car out of 13 ‘Small SUVs’ tested to earn a ‘good’ rating in the test, the new Subaru Forester was praised by IIHS vice president for vehicle research Joe Nolan for its industry-first safety achievement.

“This is exactly how we hoped manufacturers would respond to improve protection for people in these kinds of serious frontal crashes,” Nolan said.

Also highlighted in the video are vehicle structural performances, dummy injury measurements and the effectiveness of restraint systems such as seatbelts and airbags.

The post IIHS explains frontal offset crash test appeared first on  CarAdvice.

Before the fireworks are blown at year’s end more than a quarter of a million Australians will sign for a small hatchback or sedan, of which about 75 per cent will pick one of the eight nameplates featured in this test.

This is the biggest, most relevant test of the year. The catalyst for this mega-comparison is the arrival of the new Volkswagen Golf. It joins the Ford Focus, Holden Cruze, Honda Civic Hatch, Hyundai i30, Mazda 3, Opel Astra and Toyota Corolla in the battle for small car supremacy.

Mid-spec, petrol-engined, automatic-equipped hatchbacks were chosen (but Focus and Corolla were only available in higher grades), with prices ranging from $23,000-$30,500 on test. Another two models could have been added, though the five-door hatchback versions of the Kia Cerato and Nissan Pulsar hadn’t quite landed in time for this test.

Some models gained an early lead for price and equipment. Interiors were then measured, with each model ranked for space and practicality. A pothole- and speedhump-ridden urban drive loop was conducted to find the most comfortable contender. A longer country road drive then established each car’s level of drivetrain punch, seat comfort, refinement, and steering and handling prowess.

Back at home base, after 500km of driving, calculators were tapped to find real-world running costs over four years/60,000km.

Let the sport begin…

PRICE AND EQUIPMENT

Cheapest car in the field is the $22,950 Honda Civic VTi-S Hatch. Standard are 16-inch alloy wheels, auto off lights, single-zone climate control, cruise control, reversing camera, and Bluetooth audio and phone connectivity.

At $24,690, the Holden Cruze SRi adds larger 17-inch alloys, a bodykit, fog lights, seven-inch touchscreen, auto-on headlights and part-leather seats; but misses climate control and a reversing camera – it only gets rear sensors.

Battling within $100 of each other are the $26,490 Mazda 3 Maxx Sport and $26,590 Hyundai i30 Elite. Both include satellite navigation and dual-zone climate control, but the Mazda gets 17-inch wheels to the Hyundai’s 16s, and neither get part-leather trim like the Holden. Most disappointingly the Mazda gets neither a reversing camera nor parking sensors.

The Volkswagen Golf 90TSI is $27,490 when optioned with the $3500 Comfortline pack that brings 16-inch alloys, dual-zone air, ‘comfort’ front seats and rain sensing wipers, among other trim enhancements. It uniquely gets front parking sensors, in addition to rear sensors and a camera, but it misses fog lights.

Two cars battle in the $28,000 range – we could only obtain the upper-middle-spec $28,190 Ford Focus Sport, while the $28,740 Opel Astra 1.4T included a $2750 option pack.

The Ford matches the Hyundai’s kit, but the Opel misses sat-nav and any form of climate control, and gets only 16-inch alloys. It is the second most expensive of the group and one of the least well equipped.

As with Ford, Toyota could only supply a $30,490 Toyota Corolla Levin ZR instead of the requested $25,990 Levin SX. Although it matches the Focus Sport for standard equipment, and adds leather trim with front seat heaters, the ZR also costs $2300 more.

From a price and equipment perspective, the Civic is the most impressive, packing middle-grade equipment for base grade pricing, while the i30 in particular leaves the Focus, Astra and Corolla looking overpriced.

In terms of value beyond equipment, the Cruze SRi is the most powerful contender here, yet it is the second-cheapest.

INTERIORS

Turn from interior equipment to interior quality, however, and there is an obvious leader – the Volkswagen Golf.

Soft-touch dash surfaces interplay with gunmetal-metallic dash inserts, tactile switchgear, intuitive controls and comfortable seats to spell ‘premium’ like no other car here.

According to our tape measure, and with the front seat set to the position of a six-foot/183cm driver, the Golf offers a benchmark 285mm of rear legroom in addition to being the only car here with rear-seat air vents. Its 380-litre boot is also the third-largest here, behind Cruze and Civic.

Above: Volkswagen Golf dash layout, rear seat, and boot space

The Honda Civic also has fantastic fit and finish, and really nice surfacing and ergonomics, particularly for the price.

It affords 270mm of rear legroom, but the rear seat itself is flat and mounted relatively low to the floor. As the picture below shows, the rear seat lacks under thigh support, while headroom is also limited. But if cargo room is more of a priority than passenger space then the Honda continues to blow its rivals away.

Its ‘magic seats’ are simple, clever and brilliant. As with the Jazz, the rear seat base can be folded up onto the backrest to essentially create two distinct storage compartments. The rear seat can also drop completely into the floor, substantially expanding the already-impressive 400-litre boot.

Above: Honda Civic dash layout, rear seat, and boot space

While the liftback-like Holden Cruze just eclipses that figure by 13 litres, it doesn’t match the rear seat flexibility of the Civic, and trails the entire group for interior quality.

Both the sunglasses holder atop the dash and rubber lining in the storage bin below the air-conditioning controls were ill-fitting in our example, but the Cruze’s hard plastics and cheap detailing are inherent to the global design.

The Adelaide-built Holden matches the UK-made Honda for rear legroom, but gets a substantially more inviting rear seat with greater levels of headroom.

Above: Holden Cruze dash layout, rear seat, and boot space

Built off the same platform as the Cruze, the German-built Opel Astra might be expected to be closely related inside.

It shares its steering wheel, indicator stalks and some switchgear with the Aussie, but has a substantially higher level of plastics quality and a significantly more upmarket ambience. Unfortunately the Astra is let down by its pixellated central screen and button overload – it’s an ergonomic nightmare, with genuinely unintuitive Bluetooth connectivity and poorly labelled controls.

Seat comfort is fine, but the Opel’s more traditional hatchback design, as opposed to a liftback as with Cruze, also means a smaller boot, though at 370 litres it remains generous. It also has 30mm less rear legroom than its GM stablemate, measuring 240mm and ranking seventh overall for back seat space.

Above: Opel Astra dash layout, rear seat, and boot space

Eclipsing all but the Volkswagen for rear legroom, though, is the Hyundai i30 Elite, with a generous 280mm of space. If anything the single Korean-built model in this test actually beats the Golf for its wonderfully padded, supportive and comfortably tilted rear seat – the best here.

The Hyundai ranks only marginally behind the VW and Honda for interior quality, but then raises itself above the Civic thanks to a brilliantly intuitive and high-resolution touchscreen with markedly better ergonomics – particularly with regard to the cinch sat-nav.

Call the i30 the interior all-rounder of the group, because its 378-litre luggage space is only 2L behind the benchmark VW yet it is the only car here to include a standard full-size spare wheel. It’s a podium finish for all three interior disciplines: quality, room and practicality.

Above: Hyundai i30 dash layout, rear seat, and boot space

The similarly priced Mazda 3 Maxx Sport has the finish but not the plastics quality or space. It is the oldest car here, and ready for replacement within months, so in some ways the 3 has nothing to prove.

Controls tactility and fit between parts is perfect – better than the Focus, Cruze, Astra and Corolla – but the plastics are mismatched and it has the least rear legroom here, allowing only 210mm. It also gets a flat, narrow and unsupportive rear bench.

At 340 litres, boot space is just below average – sixth, behind Focus and Corolla.

Above: Mazda 3 dash layout, rear seat, and boot space

Challenging the front runners for interior finish and comfort is the Ford Focus Sport. That’s surprising, because the base Ambiente and middle-grade Trend look relatively downmarket. But the the addition of bits of gloss-silver and piano black trim, a leather wrapped wheel, handbrake and gearshifter, and twin colour screens lift the ambience markedly.

Despite the complicated-looking Sony radio, the ability to sync mobiles and use the sat-nav is a cinch – much easier than with the Astra. Plastics quality and overall finish isn’t to Japanese or Korean standards, but it’s superior to the Cruze.

Although a middle-finisher for rear legroom, the Focus has one of the most plush and supportive rear seats in the group – second only to the i30. Behind the rear backrest, however, the 316-litre cavity is second-smallest here.

Above: Ford Focus dash layout, rear seat, and boot space

Only the Toyota Corolla has a smaller boot, its 280 litres a full 100L less than the Golf’s. Sixth for rear legroom, with an unremarkably flat and unsupportive rear bench, places this popular contender at the back of the group for interior packaging and comfort.

Although interior finish is fine, and plastics quality consistently matched, the Levin ZR fails to elevate itself much beyond the $9K-cheaper base Ascent. The small colour screen looks aftermarket, and is difficult to read in sunlight, and the climate controls lack tactility.

The Corolla doesn’t feel like the second most expensive car here.

Above: Toyota Corolla dash layout, rear seat, and boot space

ENGINES AND TRANSMISSIONS

Push the on-paper specifications aside, and move from static assessment to the drive, and this group of eight neatly splits in two – the competent and the outstanding. The division is mostly down to the engines and transmissions, but also  handling.

The trio of 1.8-litre petrol four cylinder engines in the Honda Civic, Hyundai i30 and Toyota Corolla are the least convincing here, while the 1.4-litre turbo Opel Astra sides with them, failing to overcome its 1427kg kerb weight that’s the second heaviest on test.

The Volkswagen Golf, which uses the same size engine as the Astra, weighs a massive 200kg less. That contender, along with the 2.0-litre Mazda 3 and Ford Focus, and 1.6-litre turbo Holden Cruze, all lead for powertrain punch but also coincidentally for driving entertainment.

The Honda i-VTEC engine produces 104kW of power at 6500rpm, and 174Nm of torque at 4300rpm, and mates with a five-speed automatic.

To the ear the engine is one of the sweetest-sounding here, and experience with the six-speed manual version shows it to be eager and responsive.

It is, however, a fairly peaky engine so it needs to be worked hard to deliver its best. That trait, in combination with only five gears and a 1307kg kerb weight – the same as the 2.0-litre Mazda 3 – means the Civic can feel flat and slow.

Above: Honda 1.8-litre four-cylinder engine

Hyundai’s 1.8-litre is similarly torque-deprived down low in the rev range, and the i30 Elite’s 1344kg means it has even more weight to deal with.

Yet this engine spins almost as sweetly as the Honda’s and, with 110kW at 6500rpm and 178Nm at 4700rpm, it feels quicker during full-throttle acceleration.

In driveability terms, however, the Hyundai i30 really nails the Honda. It’s all down to the excellent six-speed automatic, which mates near-perfectly with the engine, recognising its scant torque and quickly picking up lower gears. The auto is no sporting transmission, but it makes the engine feel gutsier than it really is.

Above: Hyundai 1.8-litre four-cylinder engine

The Toyota Corolla weighs 3kg more than the i30 and Mazda 3, and its 1.8-litre engine produces similar outputs at lower revs – 103kW at 6400rpm and 173Nm at 4000rpm.

What that means is the Corolla should feel slightly more relaxed at lower revs. It does, but it’s hard to credit only the engine when the automatic continuously variable transmission (CVT) – the only car here to get one – uses a ‘pulley’ system instead of gears, constantly adjusting revs to suit the engine.

Yes, the engine sounds droney, noisy, and thrashy at the high revs the CVT pegs the engine at under full throttle. But in subtly adjusting revs, the CVT makes normal progress on hills or using light throttle much more refined.

Above: Toyota 1.8-litre four-cylinder engine

The car that came second last for economy was the Opel Astra. Its downsized 1.4-litre turbo engine is smooth and reasonably punchy, but the weight issue hampers both performance and fuel consumption.

With the same power as the Corolla, but delivered earlier again and more consistently in the rev band, from 4900-6000rpm, in addition to 200Nm from even lower 1850rpm and held strong till 4900rpm, the Astra has the goods on paper.

But the Opel also has a dreadfully slow six-speed automatic transmission and tardy throttle response, which, when combined with by far the worst power-to-weight ratio here, makes the 0-100km/h claim of 10.2 seconds feel optimistic.

Above: Opel 1.4-litre turbocharged four-cylinder engine

Not surprisingly, perhaps, the Opel Astra was in good company with its fellow GM sibling, the even heavier 1447kg Holden Cruze SRi.

But the bigger 1.6-litre turbo engine makes Cruze the most potent here, and its six-speed automatic is by far the most sporting. With 132kW at 5500rpm and 230Nm at 2200rpm, only the 2.0-litre non-turbo Focus gets close with 125kW/202Nm, the second-highest figures here.

The Cruze SRi hammers hard, and is backed by a superbly calibrated Sport mode that downshifts hard when braking for a corner and intuitively holds gears between them. Yet it’s so good the auto also detects when the fun driving is over and slinks into a tall gear, proving both smarter, more aggressive and more effective than the Sport modes in Civic, Focus, Corolla and Golf – the only four other cars to get an alternative drive mode.

Above: Holden 1.6-litre turbocharged four-cylinder engine

It’s the third turbocharged engine here that proves the sweetest, however. The Volkswagen Golf 90TSI 1.4-litre engine sounds wonderfully buttery when pressed, and unsurprsingly so with 200Nm lathered on from 1400-4000rpm, and 90kW from 1400-4000rpm.

Although it is technically the least powerful car here, at 1233kg the Golf weighs a staggering 74kg less than the next lightest contenders, the Civic and Mazda 3. Its 9.3-second 0-100km/h smashes the more ‘powerful’ Astra by almost a second, yet in the real world it feels more like two.

It is an outstanding engine, although the seven-speed dual-clutch automatic still isn’t the smoothest unit. It’s hugely improved compared with previous generations, however, and once on the move has brilliant intuition – slipping back gears when it detects downhill – along with a less frenetic Sport mode.

Above: Volkswagen 1.4-litre turbocharged four-cylinder engine

It’s a battle between the 2.0-litre engines in the Focus and Mazda 3 for the third-best drivetrain here, and the Ford narrowly gets the lower podium step.

Compared with the Mazda, the Ford engine gets direct injection and delivers superior outputs – 125kW at 6600rpm and 202Nm at 4450rpm, 17kW/20Nm more. The Focus weighs 1401kg, though, a porky 94kg more than the 3 Maxx Sport, so their power-to-weight ratios are similar.

But while the Focus six-speed dual-clutch auto shares some of the VW’s low-speed stumbles, it’s a hugely effective and clearly efficient partner to the engine. Experience with the five-speed manual hooked to the 2.0-litre leaves the Focus feeling doughy and weighty, with clear gaps between ratios.

Above: Ford 2.0-litre four-cylinder engine

Fluent and frisky in equal measure, the Mazda 2.0-litre feels torquey and its five-speed automatic has fine intuition.

The more rounded characteristics of this larger engine compared with the Honda 1.8-litre, and the lighter kerb weight, means five gears is plenty enough to not leave the 3 feeling slow.

At higher speeds on the open road, beyond the response of the sensitive throttle and decent torque-to-weight ratio, the Mazda auto has to work hard to keep the engine on the ball. It flicks back through gears quickly, but to the detriment of refinement.

Above: Mazda 2.0-litre four-cylinder engine

STEERING, RIDE AND HANDLING

The Mazda 3 and Ford Focus have long jointly led the small car pack for handling, but they now have a new contender to deal with. It isn’t the Volkswagen Golf – it’s the Holden Cruze SRi.

Through switchbacks, sweepers and 90-degree corners, the Holden had the pace and agility, the poise and panache, to wipe its competitors clear. The SRi feels like it has a brashly sporty suspension tune around town, but the slight firmness never descends into uncomfortable harshness.

Yet the Cruze sits flat, points quickly through the decent electro-hydraulic steering, feels utterly composed on poor surfaces, and fires out of bends with complete back-up from the transmission and subtle stability control. It is the new leader.

Of course, unlike the Cruze, the Mazda 3 has nothing to prove being in the twilight years of its life.

Its steering is better, just as sharp on centre but more connected on rotation, and its lack of bodyroll is similarly impressive. The Mazda is more playful than the Holden, with a stand-on-its-nose disposition followed by fleeting moments of oversteer if the brake is held deep in the corner – or if the throttle is lifted mid corner.

The Mazda 3 lacks the Cruze’s unflappable composure and stability, though, so it’s lucky there’s an excellent stability control to nip-tuck overenthusiastic progress. The ride quality of the Mazda also remains too unsettled, with less bump-thump than the Holden but more regular fidgeting. On coarse-chip surfaces, the 3 is also the noisiest car here, with way too much road intrusion.

The Ford Focus Sport gets sports suspension – naturally – but compared with the lesser Ambiente and Trend grades, the Sport not only tightens body control but it also settles the ride. That’s despite it also wearing lower-profile tyres.

There’s a fluency to the Focus Sport that neither the Mazda 3 nor Cruze SRi can match. It has the best steering, both superbly sharp and wonderfully consistent. It also has better ride quality than both. Both of these aspects means that, although the Focus isn’t quite as pin-sharp at the front end or flat-sitting in bends, it can be enjoyed all the time, whatever the conditions.

The Ford is as quiet as the Holden, though it still isn’t what you’d call ‘quiet’, and the chassis balance is still exemplary. Shame that the non-switchable stability control – only traction control can be disabled – is way too intrusive.

It’s no coincidence that the top trio all have an ‘S’ in their nameplates – Focus Sport, 3 Maxx Sport, Cruze SRi – and the Volkswagen Golf does not.

The Volkswagen isn’t as playful as the Mazda, nor as sweetly balanced as the Focus, nor as agile as the Cruze. But it blends those aspects with by far the most comfortable ride, nicely consistent and surprisingly quick steering, and astonishing composure.

The rougher the road, the better the Golf feels. Its suspension perfectly balances control with compliance, and its level of quietness is far beyond anything here. As with its interior, in terms of its refinement it is the only car here that could be genuinely compared with the hatchbacks from the German luxury brands…

There’s a big step down to the Opel Astra, which has great ride quality around town and still-fine composure, but it is also more understeery and less fleet of foot than the Golf, let alone the front runners.

It also has slower steering and dull throttle response, in addition to the recalcitrant, slow-to-shift automatic.

But if urban ride quality is placed ahead of steering and handling ability, then the comfortable Opel makes a convincing on-road argument against the sportier Holden and Mazda.

The Hyundai i30 outshines the Astra for dynamics, with a lack of tyre grip actually aiding its front-to-rear balance. Indeed the i30 Elite is the second most playful car here after the Mazda. We were first to test the MY14 i30 which gets local suspension upgrades (but no visual tweaks). Body control is much tighter than it was previously, but the Hyundai suffers from intrusive stability control and average steering response.

Worse, the changes made to improve body control have introduced a level of urban and freeway intrusion that weren’t there previously. The i30 deals with large irregularities well, but it now transmits even the smallest of road imperfections to the cabin, thumps over larger ones, and responds far too aggressively to speed humps. It feels unrefined and at odds with the car’s character.

We know from driving the Euro-tuned i30 Tourer that a better compromise can be found – that car’s wonderful urban characteristics makes the wagon the pick of the i30 range.

The Toyota Corolla and Honda Civic aren’t as quiet as the Astra and i30, and both are dynamically inconsistent.

The Corolla is sharper, and surprisingly grippy and tight to punt enthusiastically, if not for the intrusive (but switchable) stability control.

In Levin ZR spec, however, the ride quality is busy on most surfaces, and refinement levels are below average – both from the engine and noise thrown up from the tyres.

By contrast the Civic is quite pleasant around town, comfortable yet disciplined enough on its sensible 55-aspect 16-inch tyres. It actually runs the Astra quite close for around-town compliance, yet it doesn’t smother all surfaces with the finesse of the Golf.

The Honda also gets squirmy when pushed, demonstrating an obvious lack of body control at speed, teamed with light and lifeless steering.

Through bends it is also earliest to understeer, and lacks adjustability when the throttle is lifted, although the standard Continental tyres are grippy.

RUNNING COSTS

After 500km, turbo models book-ended the economy scores – the Golf 90TSI recorded 7.9L/100km, the Cruze SRi a shocking 14.5L/100km. Significantly, the closely-related engine in the Astra ranked second last at 11.0L/100km, so perhaps GM turbo engines aren’t as efficient as they should be.

The performance advantage of the Mazda is enough to justify its 10.3L/100km compared with the 9.8L/100km Corolla, 9.1L/100km i30 and 8.9L/100km Civic, except the even punchier Focus matched the Honda’s number to nab equal second place for frugality.

Put that in ownership terms, and over the average 15,000km Australians travel each year, with unleaded priced at $1.30 per litre and premium unleaded at $1.45 (at the time of writing), the Golf will cost $1718 to fuel, compared with $2828 for the Cruze. The VW is the only car here to require premium unleaded, yet even with that factored in it remains the cheapest to fuel, although it’ll save only $17.25 per year over a Civic or Focus, based on our results.

That other major running cost – servicing – helps the Holden regain ground. With nine month or 15,000km intervals, its $185 capped price program means that it’ll cost $740 on a distance-based schedule to 60,000km or $989 over 45 months.

The Toyota, with six-month/10,000km servicing, is cheaper if 60,000km is covered in three years, costing $780. But with the national average set at 15,000km per year, more likely the Corolla will need four years to cover that number of kilometres, and over 48 months it needs another two services, one of which costs $730 for a total $1708 on a time schedule.

Honda and Mazda also require six month/10,000km servicing, and other than the inconvenience of more frequent workshop visits, they are also the most expensive to service – to 60,000km the Civic costs $1489, the 3 a full $2007; over four years the costs blow out to $1981 and $2771 respectively.

Ford, Hyundai, Opel and Volkswagen all have the best, 12 month or 15,000km schedules. The i30 needs $1067 over 60K or four years, the Astra $1342, the Golf $1430 and the Focus $1475.

Only VW and Opel include three years free roadside assistance, where Ford, Holden and Hyundai offer 12-month cover, and the others none.

But only Hyundai offers a five-year, unlimited kilometre warranty – the others all have three-year cover, with unlimited distance for Mazda and VW, and a 100,000km cap for the rest.

VERDICT

This comparison’s tail-enders have one thing in common – each offer better grades in the range. The Toyota Corolla is stacked with equipment in Levin ZR form, but it doesn’t ride as well as the base Ascent, while the Honda Civic needs a manual gearbox and a diesel engine to back its brilliant versatility.

Hyundai’s i30 has the best warranty, cheap servicing, a fine interior and lots of kit, but the suspension upgrade has ruined its urban ride quality. Despite its ordinary economy and higher pricetag, the quieter and plush-riding Opel Astra is simply the better car.

It’s a fight for a podium finish between the Holden Cruze and Mazda 3. The locally-made Cruze is the fastest and most dynamic contender, and its thirst is partially offset by cheap servicing. But it also feels the cheapest inside.

The Mazda 3 is nicely finished, has an intuitive automatic transmission, and is similarly rewarding to drive. Yet the Holden is roomier and quieter than the Mazda, allowing it to nab the podium’s bottom step.

The Ford Focus, meanwhile, is a brilliant all-rounder in Sport auto spec. Its steering can be enjoyed anywhere, its interior looks flash, the drivetrain is enjoyable, and it offers fluent dynamics.

But it still isn’t quiet and doesn’t feel premium. The winner, the Volkswagen Golf, is miles ahead of any car here in those aspects. Its ride is also superior by some margin, its engine is both the sweetest and most economical, and the cabin and boot among the roomiest. It is the classy small car that really is a class above.

Click the Photos tab for more images. Photography by Easton Chang.

Ford Focus Sport
 
Price: $28,190
Engine: 2.0-litre four-cylinder petrol
Power: 125kW at 6600rpm
Torque: 202Nm at 4450rpm
Transmission: Six-speed dual-clutch automatic
Fuel consumption: 6.6L/100km claimed (8.9L/100km on test)
CO2 emissions: 154g/km

Holden Cruze SRi
 
Price: $24,690
Engine: 1.6-litre turbocharged four-cylinder petrol
Power: 132kW at 5500rpm
Torque: 230Nm at 2200rpm
Transmission: Six-speed automatic
Fuel consumption: 7.9L/100km claimed (14.5L/100km on test)
CO2 emissions: 186g/km

Honda Civic VTi-S
 
Price: $22,950
Engine: 1.8-litre four-cylinder petrol
Power: 104kW at 6500rpm
Torque: 174Nm at 4300rpm
Transmission: Five-speed automatic
Fuel consumption: 6.5L/100km claimed (8.9L/100km on test)
CO2 emissions: 155g/km

Hyundai i30 Elite
 
Price: $26,590
Engine: 1.8-litre four-cylinder petrol
Power: 110kW at 6500rpm
Torque: 178Nm at 4700rpm
Transmission: Six-speed automatic
Fuel consumption: 6.9L/100km claimed (9.1L/100km on test)
CO2 emissions: 164g/km

Mazda 3 Maxx Sport
 
Price: $26,490
Engine: 2.0-litre four-cylinder petrol
Power: 108kW at 6500rpm
Torque: 182Nm at 4500rpm
Transmission: Five-speed automatic
Fuel consumption: 8.4L/100km claimed (10.3L/100km on test)
CO2 emissions: Not available

Opel Astra 1.4T
 
Price: $28,740 (incl. $2750 Comfort Pack)
Engine: 1.4-litre turbocharged four-cylinder petrol
Power: 103kW at 4900-6000rpm
Torque: 200Nm at 1850-4900rpm
Transmission: Six-speed automatic
Fuel consumption: 6.7L/100km claimed (11.0L/100km on test)
CO2 emissions: 156g/km

Toyota Corolla Levin ZR
 
Price: $30,490
Engine: 1.8-litre four-cylinder petrol
Power: 103kW at 6400rpm
Torque: 173Nm at 4000rpm
Transmission: Automatic continuously-variable transmission (CVT)
Fuel consumption: 6.6L/100km claimed (9.8L/100km on test)
CO2 emissions: 152g/km

Volkswagen Golf 90TSI Comfortline
 
Price: $27,490
Engine: 1.4-litre turbocharged four-cylinder petrol
Power: 90kW at 5000-6000rpm
Torque: 200Nm at 1400-4000rpm
Transmission: Seven-speed dual-clutch automatic
Fuel consumption: 5.4L/100km claimed (7.9L/100km on test)
CO2 emissions: 126g/km

The post Volkswagen Golf v Mazda 3 v Toyota Corolla v Holden Cruze v Ford Focus v Hyundai i30 v Opel Astra v Honda Civic appeared first on  CarAdvice.

A contract between Nissan and the city of New York for a fleet of taxis is before the courts, with a New York Supreme Court Justice ruling that part of the program’s deal is “null, void and unenforceable”.

Industry journal Automotive News reports that only five months out from the rollout of the ‘Taxi of Tomorrow’ (ToT) program, Justice Peter Moulton of the New York Supreme Court has ruled that the contract awarded to Nissan by the New York City Taxi and Limousine Commission in 2011 is flawed due to the city’s specific call for a “hybrid electric vehicle” not being met by the petrol-powered Nissan NV200.

While the report states that Nissan has promised the city of New York a battery-powered, zero-emission electric version of the NV200 will be released in the future – backed up by court documents from Nissan assuring a hybrid version is planned for 2015 – Justice Moulton ruled that New York taxi companies must be able to buy hybrid electric vehicles from other companies despite the exclusive nature of the initial 10-year contract, worth an estimated US$1 billion.

Chairman of the New York Taxi and Limousine Commission, David Yassky, said the ruling would not delay the implementation of the Taxi of Tomorrow program.

“The TLC is acting to ensure that taxi owners will continue to have the option to purchase a hybrid vehicle, even once the ToT hits the road in October.”

According to the report, the TLC is to meet on June 20 to propose new rules on hybrid taxis to rectify the issue.

Powered by a 2.0-litre four-cylinder engine, the Nissan NV200 taxi has been modified to carry four passengers and luggage, with greater rear legroom, sliding doors, side steps, grab handles, phone chargers, reading lights and a transparent roof all fitted for the role.

No impact on the Nissan Leaf electric vehicle taxi pilot program launched in New York City in April has been announced.

The post Nissan New York taxi program before US Supreme Court appeared first on  CarAdvice.

A group of researchers and scientists in the US has found that breathing vehicle tailpipe emissions can turn ‘good’ cholesterol into ‘bad’ cholesterol, contributing to clogged and hardened arteries and other related health problems.

Experimenting on mice, the team from the University of California in Los Angeles (UCLA), and other institutions, found that just two weeks of exposure to emission particles was enough to cause blood and liver damage that was not reversed by a week of receiving filtered air.

The researchers found vehicle emissions can trigger a change in high-density lipoprotein (HDL) cholesterol, altering its cardiovascular protective qualities.

The mice were exposed to diesel exhaust for a few hours a day, several days a week, at a particulate mass concentration within the range mine workers are usually exposed to.

The researchers analysed blood and tissue specimens and checked if the protective antioxidant and anti-inflammatory properties of the ‘good’ HDL cholesterol were still intact, and found that many of the positive properties of HDL were markedly altered after air-pollutant exposure. The exposed mice had a significantly decreased ability to protect against oxidation and inflammation induced by ‘bad’ low-density lipoprotein (LDL) cholesterol.

“This is the first study showing that air pollutants promote the development of dysfunctional, pro-oxidative HDL cholesterol and the activation of an internal oxidation pathway, which may be one of the mechanisms in how air pollution can exacerbate clogged arteries that lead to heart disease and stroke,” said senior author Dr Jesus Araujo, associate professor of medicine and director of environmental cardiology at the David Geffen School of Medicine at UCLA.

First author and researcher in the division of cardiology at the Geffen School of Medicine, Fen Yin, encouraged people to be vigilant around vehicle emissions.

“We suggest that people try to limit their exposure to air pollutants, as they may induce damage that starts during the exposure and continues long after it ends,” Yin said.

The study was funded by the US National Institute of Environmental Health Sciences; the National Heart, Lung and Blood Institute; and the US Environmental Protection Agency.

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An image depicting a Renault Zoe cabriolet has appeared on the French brand’s dedicated electric vehicle Facebook page.

While it looks convincing, the image is a computer generation created by a fan of the zero-emission Zoe city car, rather than a revelation of the next phase of Renault’s EV expansion.

The fact that the Zoe cabriolet has no actual links to Renault’s design department mattered little to the administrators of the official ‘Renault ZE’ Facebook page, however, who posted the image this week.

Renault’s Facebook page describes the Zoe cabriolet as “ideal for driving in the fresh spring sun” before asking its online followers: “Would you like this concept made by a fan to be real?”

The image has attracted 737 likes, 117 comments and 148 shares from its 21,873 fans since being posted on Wednesday.

While Renault has no formal plans to build a Zoe cabriolet, it will monitor its fans’ reactions to the concept closely to gauge the level of interest in the pint-sized open-air EV.

The Renault Zoe is a pure-electric hatchback powered by a 22kWh lithium-ion battery and a 65kW/220Nm electric motor. The Zoe has a range of 210km, and can be recharged within 30 minutes using a fast charger.

Renault Australia has previously confirmed its interest in the Zoe, but has no firm plans to introduce the compact electric car to our market at this stage.

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The McLaren 50 MP4-12C special edition has been released to help the British brand mark its 50th anniversary.

Adding further exclusivity to the 460kW/600Nm McLaren MP4-12C supercar, the McLaren 50 anniversary edition will be limited to 100 cars globally, split evenly between the $398,000 MP4-12C hardtop and its $441,780 drop-top Spider twin.

The commemorative models feature unique styling and specification enhancements, including a redesigned front bumper, carbonfibre accents and a front floor made of carbon Kevlar composite.

Bespoke McLaren 50 ultra-lightweight wheels, measuring 19 inches at the front and 20 inches at the rear and finished in Satin Black, offer a 2kg weight saving over the optional super-lightweight wheels, and sit on top of 394mm front/380mm rear carbon ceramic brakes discs.

McLaren 50-stamped carbonfibre turning vanes and a black McLaren F1-inspired ‘heritage badge’, previously only available to clients of McLaren’s Special Operations division, complete the exterior tweaks.

Inside, the McLaren 50 12C models receive full leather upholstery, an anniversary dedication plate on the driver’s door and branded carbonfibre sill panels and floor mats.

Available in Carbon Black, Supernova Silver or classic McLaren Orange, each McLaren 50 model MP4-12C will be presented to owners with a monogrammed black and silver car cover, limited edition key, carbonfibre presentation key box and a specially commissioned print signed by McLaren Automotive’s design director Frank Stephenson.

The McLaren 50 12C and McLaren 50 12C Spider are priced at £196,000 ($306,000) and £215,500 ($336,000) respectively, in their home UK market.

Earlier in the year McLaren released the first of three specially commissioned short films explaining the story behind the brand, as part of its 50th anniversary celebrations.

Click on the Photos tab for more images.

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Audi is the master of interiors. Just look at the third-generation Audi A3 that has been released in Australia.

No matter whether you choose the $35,600 base model or the range-topping $42,500 grades, you feel like you are driving a premium car.

Rivals such as the Mercedes-Benz A-Class have lifted the game, but the Audi A3’s cabin is even better again. It’s not radical or adventurous, but simple and elegant, with materials that give the impression of quality. Cabin quality is crucial to the appeal of the Audi A3.

It shares the majority of its underpinnings with the seventh-generation Volkswagen Golf, along with its engines and transmissions. While it does have unique elements – such as an aluminium sub-frame and front suspension components, and unique exterior panels including aluminium bonnet and front guards (which help reduce weight to 1225kg) – there can be no doubt about its family ties.

Does it matter? Not really, the Audi A3 appeals to different customers, it looks unique, in and out, and has unique features. It also wears an Audi badge and the brand has sufficient value for that to be important to customers.

The Audi A3 drive experience, over a range of different roads near Cairns, seems similar to the Golf that we tested in Victoria. In fact the little Volkswagen may even have a better suspension set-up that better balances agility with ride comfort.

The similarity is not a criticism because the Golf is a cracking car, quiet, comfortable and fun to drive, with a really good interior that impresses in isolation but can’t match the cabin of the new A3.

The Audi A3 Sportback (five-door) range kicks off with the 1.4-litre four-cylinder TFSI turbo petrol, in the base Attraction specification level, for $35,600. This is a smooth engine, with 90kW and 200Nm and has enough punch to keep up with traffic. It can be a little slow to get going and the dual-clutch ‘S tronic’ automatic transmission contributes to this occasional lethargy.

Manual transmissions are available for special order on the petrol models, but not the diesels. The official fuel economy figure of 5.0 litres per 100km is notable and our 6.6L/100km was particularly impressive.

Though not available to drive on the launch, for an extra $900 the Attraction trim level is available with a 1.6-litre four-cylinder turbo diesel engine, which makes 77kW and 250Nm. It is teamed to the same seven-speed dual-clutch gearbox.

Its official fuel consumption figure of 3.9L/100km is remarkable.

Both Attraction models come with a reasonable amount of standard gear, including a swag of safety kit, 16-inch alloy wheels, rear parking sensors, cruise control, dual-zone climate control, leather-vinyl combination seats and a 5.8-inch pop-up centre display screen controlled by an MMI roller ball controller that sits near the gear shifter.

More spritely 1.8-litre petrol and 2.0-litre diesel engines are only available in the higher-end Ambition trim level.

This brings 17-inch alloy wheels, front foglights, exterior chrome details, colour screen in the instrument cluster, leather-wrapped sports steering wheel, sports front seats and access to different option packages.

Audi Drive Select is also standard on Ambition models. It allows the driver to select from different modes, which alter the way the car drives. ADS changes the steering assistance, gearshift change points and throttle actuation, though it doesn’t alter the damping characteristics of the suspension.

The 1.8-litre petrol Ambition costs $42,500. It makes 132kW and 250Nm and uses the seven-speed dual-clutch auto. The official fuel consumption number is 5.6L/100km (we saw 6.8L/100km).

It is quite an enjoyable engine to play with, delivering its maximum torque all the way from 1250rpm to 5000rpm. All A3s have steering wheel-mounted paddles, which aren’t much use with the diesels, but are a treat when you hit an involving piece of road in a petrol model.

The $42,500 2.0-litre diesel is also strong, with 110kW and 320Nm. It is also linked to a dual-clutch auto, though this one is a six-speed. There can be some initial hesitation off the line, but it makes up for this with a wave of torque that keeps on coming. This diesel is well isolated and you don’t hear it much in the cabin. It certainly makes less of a drone when it selects top gear at 60km/h than the same engine in the Golf. The official fuel consumption of this engine is 4.5L/100km (we managed 5.9L/100km).

The Audi A3 is extremely quiet on some tarmac surfaces. It’s obvious a lot of work has gone into refinement.

This serenity is spoiled on some of the coarse chip surfaces on the launch drive route and the level of tyre noise in those situations doesn’t match what you would expect from a premium car.

The A3 is competent through the corners and a car you can have some fun with. It’s not the most agile in its class, with a little more body roll than expected. The suspension displays considerable travel at higher speeds over large bumps, but curiously picks up smaller imperfections on the road surfaces, especially at lower speeds when it feels like the tyres are over-inflated. That said, more thorough testing on familiar roads should help us get a better read of the A3’s suspension.

Audi switched to electric steering assistance for this A3 and has got it right. It feels light in most conditions, but not overly so, and the assistance can be altered on the higher-spec models.

The five-door Audi A3 is also entirely practical. It has a decent boot (380 litres), with a space-saver spare hiding under a cover, and considerable interior space. Like the Golf, it is only slightly larger than the previous model, but the wheelbase has increased (58mm).

The outer rear seats are especially comfortable, with surprisingly supportive cushions, and there is ample head and legroom. A 5ft11in bloke would have no qualms sitting in the back for a long journey. Audi’s leather-faced seats (vinyl is used on the squabs) have a soft, quality feel, whether in the base trim or higher grades.

The MMI control system is useful although not all perfectly intuitive. That said, you might learn it well in time.

The standard centre screen is colour, but has chunky graphics. You can upgrade to a larger screen with high-resolution graphics, rear-view camera, sat-nav and an enhanced MMI that enables you to enter letters and numbers on a touch pad (it will take some practice) in a $2990 bundle.

All Audi A3s feature Bluetooth audio streaming, which is handy.

Audi’s designers certainly didn’t get carried away with the new A3. See one from behind in traffic and it is not easy to tell whether it is the current car or the last one. The front end is not particularly exciting either.

It was never going to look bold, but the Audi A3 looks plain compared with the rival Mercedes-Benz A-Class. That car might not appeal to everyone, but it stands out and makes you take notice, especially in A250 guise.

The Audi A3 is a strong contender in the prestige small car class. It lifts the bar in terms of interior quality while offering strong mechanical packages and a high level of practicality.

It is well worth a look alongside the A-Class and BMW 1 Series.

It isn’t bad value when you look at what you get, including the badge, and a lot of customers will be extremely satisfied. However, customers should also look at the A-Class and especially the A250 Sport if the bank manager can be convinced.

The A3 1.8 TFSI we tested cost $42,500 as standard, rising to $49,940 with a few options were added. It’s a good drive, but for $49,900, you can get a Mercedes A250 Sport which is faster, sportier and much more dramatic.

The post Audi A3 Review appeared first on  CarAdvice.

The Skoda Octavia Special Edition will launch next month with a high level of standard equipment and an aggressive $21,990 driveaway price tag.

Based on the Skoda Octavia 90TSI, the Special Edition adds 16-inch alloy wheels, ‘Columbus’ satellite navigation system with 30GB hard drive and eight speakers, dual-zone climate control, rain-sensing wipers, light assistant with ‘coming home’ and ‘tunnel light’ functions, and a centre rear armrest with storage compartment.

Silver roof rails are also added to the wagon variant, which is priced from $23,690 driveaway.

The driveaway pricing offer represents a saving of thousands of dollars on Skoda’s second-generation small car, which is set to be replaced in the final quarter of this year by the all-new, larger third-gen Octavia.

By comparison, the regular entry-level Octavia 90TSI liftback starts from $24,990 before on-road costs, while the wagon is priced from $26,990.

The Special Edition is powered by a 90kW/200Nm 1.4-litre four-cylinder turbocharged petrol engine. It comes standard with a six-speed manual transmission, while a seven-speed dual-clutch automatic is a $2300 option.

The Skoda Octavia Special Edition will be available from June 1 until sold out.

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Hyundai’s permanent presence at Nürburgring is expected to boost the quality and performance of the popular Korean maker’s cars closer to that of its European rivals.

The purpose-built facility will launch in August, offering Hyundai a dedicated resource for evaluating its vehicles on one of the toughest proving grounds in the world.

Hyundai Motor’s General Manager of Vehicle Test & Development, Axel Honish, told CarAdvice during an exclusive tour of the facility that having a full-time presence at the Nürburgring is critical to the on-going improvement of company’s cars.

“The Nürburgring is an ideal track that covers all possible driving situations for performance testing. It’s a safe environment because it’s not a public area,” he said.

“Proving grounds simply don’t have the proper track layout with natural corners, compressions that offer experienced test drivers enough feedback to improve the car’s performance”.

Honish added the permanent presence at the Nürburgring would give Hyundai a better opportunity to benchmark competitors. “It is important to find out where we are in comparison and how far we have to go to match these rivals”, he said.

Asked specifically about the latest Volkswagen Golf, which is considered by the motoring media to be the benchmark in the small car segment, Axel said: “The Golf is very balanced in all conditions, but we are very proud to be competitive with our rivals and will continue to refine our cars”.

Hyundai’s new facility will allow it to complete a greater number of the arduous ‘accelerated durability tests’ where an intensive 10,000km (480 laps) running each car at 90-95 per cent of the best lap time (in wet and dry conditions) is the equivalent of 180,000km on the road.

Over 20 specific measurements are taken on every run, while the driver’s observations are also recorded.

Hyundai uses up to six highly experienced test drivers who have years of experience on the Nüburgring – most with at least 10,000 laps under their belt and all of whom can replicate lap times to within one second and hitting certain speeds in certain positions.

“Every test brings improvements to our vehicles. Even those models not tested here will benefit from what we learn. The data we collect is not only valid for Europe, but is shared with Hyundai’s offices around the world”, said Honish.

“We also test other brands – all German cars, including premium models. This provides a valid data set for comparisons”.

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The Viper will return to compete in this year’s 24 Hours of Le Mans race in its first factory-backed entry since 2000.

Chrysler Group’s SRT (Street and Racing Technology) Motorsports Team is preparing two identical SRT Viper GTS-R racers to compete in the classic French endurance race for the first time since the American muscle car finished one-two in the GTS class consecutively from 1998 to 2000, after the team accepted an invitation in February from the Automobile Club de l’Ouest (ACO) to challenge the LM GTE Pro class at the Le Mans 24 Hour.

SRT president and CEO Ralph Gilles said racing was a cornerstone of the Viper’s illustrious history.

“The GTS-R has enjoyed great success at Le Mans in the past and we’re excited to start a new chapter of Viper racing at that historic venue.”

Based on the 477kW/814Nm SRT Viper production car unveiled at the 2012 New York auto show, the 335-372kW SRT Viper GTS-R race cars made their official return to racing in August last year competing in the American Le Mans Series.

Powered by an 8.4-litre V10 engine tied to a six-speed manual transmission, the 1521kg road-going SRT Viper claims performance figures of 0-100km/h in the low three-second range and a top speed of 331km/h.

SRT has announced its Le Mans drivers as Marc Goossens, Dominik Farnbacher, Jonathan Bomarito, Kuno Wittmer, Tommy Kendall and Ryan Dalziel.

The Viper’s racing history started in 1996 with the original GTS-R earning five international GT championships and the 1997 to 1999 FIA GT championships, in addition to the three successful Le Mans campaigns ending in 2000.

The 81st Le Mans 24 Hour will be run at the Circuit de la Sarthe in France starting from June 22.

The post Viper returning to Le Mans appeared first on  CarAdvice.

Tesla Motors has paid off the remaining portion of the loan granted to it by the US Department of Energy in 2010.

The California-based electric vehicle manufacturer transferred US$451.8 million ($464.0 million) this week to clear its debt with the government, plus interest, following earlier payments in 2012 and the beginning of 2013.

Tesla was awarded a loan of US$465 million ($478 million) under the government’s Advanced Technology Vehicle Manufacturing (ATVM) program three years ago, and in settling its debt this week has paid back the loan nine years earlier than originally required.

Tesla CEO Elon Musk confirmed the final loan payment was made using a part of the circa-US$1 billion ($1.03 billion) in funds raised in last week’s offering of common stock and convertible senior bonds.

“I would like to thank the Department of Energy and the members of Congress and their staffs that worked hard to create the ATVM program, and particularly the American taxpayer from whom these funds originate,” Musk said.

“I hope we did you proud.”

Automotive News reports Tesla shares finished up 6.4 per cent at US$92.85 ($95.35) following the announcement. The price has boomed 168 per cent since March 1 – a reflection of the company’s first ever quarterly profit and positive reviews of its new Model S luxury sports model.

US Energy secretary Ernest Moniz said Tesla’s loan repayment was proof the government’s ATVM program had helped stimulate the industry.

“When you’re talking about cutting-edge clean energy technologies, not every investment will succeed – but today’s repayment is the latest indication that the Energy Department’s portfolio of more than 30 loans is delivering big results for the American economy while costing far less than anticipated,” Moniz said.

“The Department first offered loans to Tesla and other auto manufacturers in June 2009, when car companies couldn’t get other financing and many people questioned whether the industry would survive. Today, Tesla employs more than 3000 American workers and is living proof of the power of American innovation.

“This announcement is also good news for the future of America’s growing electric vehicle industry. While the market has taken longer than predicted to get going, sales of electric vehicles in the US tripled last year and are continuing to increase rapidly in 2013. Tesla and other US manufacturers are in a strong position to compete for this growing global market.”

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Hyundai is just months away from opening its new state-of-the-art vehicle test centre at Germany’s Nurburgring.

The $7.3 million facility is set for completion by August this year and will be used to lift Hyundai’s vehicle development and evaluation program to benchmark levels.

Without a proper test facility on location at the Nurburgring, Hyundai was forced to rent less secure garage space – leaving the Korean maker’s new products exposed during testing to legions of spy photographers.

Covering four floors and 3622 square metres, and including several workshops, office space and a VIP hospitality area, the facility will be finished in a unique exterior glass and metallic finish.

CarAdvice was afforded an exclusive tour of the building this week with Hyundai Motor Group Vehicle Test & Development Manager, Dr Farhad Yousefi-Hashtyani.

He said the new centre would be distinctive among those manufacturers already running a permanent base at the Nurburgring.

“Our test drivers will be able to access the drive-in, drive-out workshops by remote control using their smart phones, while the ramp leading to the bottom garage will be heated to minimise moisture in the garages,” Dr Yousefi-Hashtyani said.

The new test facility also means that Hyundai’s current R&D centre in Russelsheim, Germany – home to the company’s European powertrain, tuning and evaluation divisions – will all have easy access to the Nurburgring, enabling them to complete a greater number of vehicle assessments each year.

Allan Rushforth, Senior Vice President and COO of Hyundai Motor Europe, believes the new test facility will lift testing capacity and overall vehicle quality across the group.

“Quality is one of Hyundai’s core values and it’s key to achieving customer satisfaction,” he said. “The Nurburgring is the ultimate location to test vehicle durability, and we’re able to apply what we learn there to all of our vehicle development projects.”

“Our new facility will increase our testing capacity, bringing direct benefits to our customers in terms of vehicle quality and performance”, added Rushforth.

That additional capacity for testing will enable Hyundai to complete accelerated durability tests on 11 vehicles, as well as tuning steering, suspension, ride and handling characteristics during 2013.

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The Lotus Exige S Roadster has been released in the UK, becoming the British brand’s fastest ever convertible.

A drop-top version of the current Lotus Exige S, the Lotus Exige S Roadster joins the lightweight sports car’s line-up alongside the track focused Exige Cup and Exige Cup R.

Powered by the same 257.5kW/400Nm supercharged 3.5-litre V6 powerplant and six-speed manual transmission as the $119,990 Exige S hardtop that launched in Australia in April, but weighing 10kg less, the 1166kg Lotus Exige S Roadster matches the coupe’s claim of 0-100km/h in four seconds.

With the convertible’s soft-top fitted – able to open in slightly more than four seconds – the Roadster’s top speed is down from the coupe’s 274km/h to an electronically limited 233km/h.

While the Exige S Roadster loses its hardtop brethren’s rear wing and front splitter in exchange for a sleeker silhouette, efficiency figures remain identical at 10.1 litres per 100km and 236 grams of CO₂ per kilometre.

Four-piston AP-Racing calipers clamp down on ventilated and cross drilled discs under 17-inch front and 18-inch rear alloy wheels wrapped in Pirelli P-Zero Corsa tyres.

Electronic stability control and anti-lock brakes with brake assist and electronic brakeforce distribution join cornering brake control and Lotus’ dynamic performance management system in ensuring that safety, as well as performance, is covered.

The Lotus Exige S Roadster – priced from £52,900 ($82,700) in its home market – is available to order in Australia now, with full pricing and specifications to be announced closer to the car’s arrival in the first quarter of 2014.

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Prime Minister Julia Gillard has pledged more than $50 million to support the workers, businesses and regions affected by Ford Australia’s decision to close its Victorian manufacturing plants in October 2016.

Ford Australia president and CEO Bob Graziano this morning confirmed the company’s plan to cease local vehicle production, which will lead to the loss of 1200 jobs across the Broadmeadows assembly and Geelong engine plants.

Graziano said there would be “limited” opportunities for manufacturing workers to fill other roles within Ford Australia, admitting that the majority would be made redundant and be forced to leave the company.

Prime Minister Gillard described today as a “distressing day for the company’s workforce, suppliers and the broader communities affected”, but promised to support those impacted by the announcement.

“The Australian and Victorian governments are working together to do everything we can to look after the interests of the Ford workforce, the automotive supply chain and the communities of Geelong and Broadmeadows in Melbourne,” Gillard said.

Gillard pledged almost $40 million to “structural adjustment programs to support the economic development and diversification of the Geelong and northern Melbourne regions”, with around three-quarters of that figure to be supplied by the Federal Government.

“We will be seeking a significant contribution to this effort from Ford Australia,” she added.

The Federal Government will also support businesses and workers in the automotive supply chain by providing an additional $10 million for the Automotive New Markets Program, while Victoria will make a $2 million contribution to support its component suppliers.

Ford Australia received hundreds of million of dollars in federal and state government support over the past decade as sales of its once-dominant Falcon large car steadily dwindled to unsustainable levels.

Gillard confirmed that Ford Australia did not approach either government for additional support to keep its Australian manufacturing operations going in the lead-up to today’s announcement, however, signalling, as expected, that the end has been imminent for some time.

The Prime Minister said she had confidence in the strength and resilience of the people in the automotive manufacturing industry endure the latest major setback and come out the other side.

“Ford Australia has not announced any immediate job losses, giving workers time to plan their future and seek assistance in gaining new employment,” Gillard said.

“We will work with all of the important stakeholders, including unions, local communities and business organisations to design programs that will generate new and exciting opportunities for jobs and investment.”

Ford Australia CEO Graziano insisted the company was committed to continuing as a centre for excellence in global vehicle research and development beyond the end of local production in 2016. Ford has more than 1000 product development workers in Australia, giving it more designers and engineers than any other automotive company in Australia, including fellow manufacturers Holden and Toyota.

Despite today’s announcement, Gillard said her government had no plans to give up on the local industry.

“The Australian and Victorian Governments will continue to support Australian manufacturing, and the local car industry, as an important source of jobs, innovation and growth.”

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Holden managing director Mike Devereux has responded to this morning’s announcement that Ford will close its Australian manufacturing operations, saying that he “truthfully believe[s] that not only can auto making in this country survive, but it can also thrive”.

“The announcement by Ford today is a reminder of just how tough it is for manufacturers in Australia, even the most committed, like Holden, which is bringing out the most technologically advanced car ever made in Australia,” Devereux began.

“Despite Ford’s announcement to end local manufacturing, we believe the industry can survive in Australia and has already adjusted in large part given Ford’s relatively low production volumes.”

Yet Devereux reiterated that clear government policy remains key to the auto industry’s survival.

“The industry needs swift action to make Australia’s automotive policy settings clear, consistent and globally competitive as quickly as possible,” he told CarAdvice.

“There is no question that the economic conditions facing the entire country are a little different than they were two years ago.

“The current government and whatever is the next government, we need to make sure we have globally competitive policy … consistent and clear policy over time.”

Asked whether the Ford closure will affect Holden’s long term future, Devereux said he is committed to the plan to build two new global architectures in the South Australian plant from 2017 until 2022.

“We have a pretty solid plan … we will need to work very closely with the opposition and the government to make sure Australia’s policy settings are competitive globally.

“We have conversations every week with both sides of the equation [who both] understand how critical the auto industry is to the country.

“The new Commodore is a car that is a class above and will change minds. It plays a critical role in Holden’s long-term future in Australia and it is expected that Commodore will continue to be one of the top 10 selling cars in the country.”

Devereux asserts that Holden has strong links with their suppliers, although he conceded that many supply parts for Ford, Holden and Toyota.

“There’s a different story for every supplier. Some of them have more exposure to us, or to Ford, or to Toyota, some supply all three.

“For those parts makers that are 100 per cent Ford, this will obviously impact on them, but we have a very tight relationship through a process called supplier council … to make a really world-class supply chain.”

Journalists crowded around a Holden VF Commodore, with Devereux in the front seat, listening via the car’s Bluetooth connection to the announcement that Ford will close its manufacturing operations in Australia from October 2016.

The announcement was made at 11am, during the thick of the VF Commodore drive – which is embargoed until 12:01am May 30.

Asked whether the closure announcement was timed to coincide with the Holden launch, Ford Australia president and CEO Bob Graziano insisted that wasn’t the case.

“The decision [to close the plant] was taken last night, so today was the day we announced it to workers and now to you,” responded Graziano.

The post Auto industry can survive: Holden MD appeared first on  CarAdvice.

Ford Australia has confirmed it will end local vehicle production in October 2016, signalling the death of the Ford Falcon and Territory and the loss of 1200 Victorian jobs.

Ford Australia president and CEO Bob Graziano said rapidly declining sales of the Falcon large car and the increasingly challenging economic conditions of the Australian market forced the decision to wind down the company’s local manufacturing operations.

“Given the fragmented marketplace and the low model volumes that result, we decided that manufacturing locally is no longer viable,” Graziano said.

“The decision we announced today was not made lightly and we understand the very real impact that this will have on our team. We came to this conclusion only after thoroughly reviewing our business and exhausting all other alternatives.”

The revelation from Graziano followed the announcement of a $141 million loss for Ford Australia in the 2012 financial year, contributing to losses of more than $600 million over the past five years.

The CEO said approximately 650 jobs will go from the Broadmeadows assembly plant and roughly 510 from the Geelong engine plant when production ceases in roughly three and a half years’ time.

While Ford Australia plans to make every attempt to find new employment for the redundant workers, Graziano admitted “opportunities will be limited” within the import-only organisation.

“We know this announcement is very difficult, especially for our employees,” he said. “Providing support to those in our team whose roles will be affected is a key priority for us during this three-year transition period.”

He promised Ford Australia was committed to looking after its outgoing workers, confirming that they will receive the full entitlements of their current employment agreements when the wind down occurs in 2016.

Graziano insisted Ford would continue to have a strong presence in Australia beyond the plant closures, stating its commitment to enduring as a centre for excellence in product development as part of the global Ford Motor Company network, with 1500 workers to remain employed in non-manufacturing roles.

Graziano said Ford Australia would forge ahead with its plans to update the Falcon, Falcon Ute and Territory in 2014, adding that they will be the best vehicles ever produced by Ford in this country.

“Ford vehicles have been part of the automotive landscape in Australia for almost 110 years and we have manufactured here since 1925. We are proud of that history. We are proud of our role in Australia and we haven’t made this decision lightly,” he said.

“Overall, we are changing, but our commitment to Australia remains strong. We’ll move through this transition and continue to be a vibrant and strong part of the Australian driving experience.”

He admitted, however, that the Falcon name was inextricably linked to local manufacturing, and would therefore be retired in 2016 after 56 years.

Graziano would not comment on the future of the company’s in-house sports car division, Ford Performance Vehicles, although the low-volume Falcon-based manufacturer is expected to close its doors alongside Ford Australia’s manufacturing plants.

The CEO was insistent that Ford had taken every possible step to make a sustainable business case for local vehicle manufacturing before reaching its decision.

“Despite these efforts, our locally made products continue to be unprofitable while our imported products are profitable,” Graziano said.

“In a search to improve scale and competitiveness, we’ve explored what export opportunities might be available to us, but we are still faced with the fact that our cost structure in Australia remained uncompetitive. Our costs are double that of Europe and nearly four times Ford in Asia.

“We also modelled some pretty aggressive assumptions about government support and labour costs, some of which we did not think would be palatable to any government or the Australian taxpayers, but we did not want to leave any stone unturned.

“Even with these assumptions, the business case simply did not stack up, leading us to the conclusion that manufacturing in Australia is not viable for Ford in the long term.

“Although parts of it are difficult, this transformation will allow us to better align our products and services with what our customers want, and for us to continue to be successful here in Australia.”

He said part of Ford’s commitment to Australia was to strengthen its range of imported vehicles, revealing plans to increase by 30 per cent the number of new vehicles offered to Australian customers by 2016.

Falcon sales have been in steady decline for the past decade. Ford sold 95,967 locally manufactured large cars across the country in 2003 (including Falcon sedan, wagon and ute variants and long-wheelbase Fairlane and LTD models) – representing more than three quarters of the brand’s total sales.

Last year, it sold just 19,769 Falcon sedans and utes (the other variants were discontinued last decade), accounting for slightly more than one-fifth of its total sales.

The one bright light for Ford Australia has been the Territory SUV, which last year overtook the Falcon sedan with 14,646 sales, up 5.6 per cent on the previous year, though its modest increase means little in the context of the company’s dire position.

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