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Comparo: VW Amarok vs Nissan Navara ST-X 550

August 31, 2012 //
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Volkswagen has entered the lucrative ute market. But how does its small-engined Amarok spar with Nissan’s new powerhouse? NEIL DOWLING compares. June 18, 2011
NISSAN NAVARA
ST-X 550
Price: $60,990VALUE: This is the top-of-the-line Navara. The 550 flicks the 2.5-litre turbo diesel four in favour of Renault’s 3.0-litre V6 diesel with 170kW/550Nm. It’s mated this to a seven-speed sequential auto and electric part-time 4WD system with low range. Features include a six-speaker, six-CD audio with Bluetooth and dual-zone airconditioning. Star: 4/5TECHNOLOGY: This is the first showing of the V6 in a 4WD but maybe not the last. That, and the seven-speed auto, are the techno highlights. The rest is, like the VW, purposefully conventional to remain rugged, durable and together over the rough stuff. This and the Amarok have nearidentical coil-over suspension. Star: 4/5

DESIGN: Unlike the Amarok, the Navara doesn’t win many hearts. It looks old-fashioned. But the dashboard is easier to use than the VW’s and the steering wheel controls are excellent. Seating is reasonable at the front but the cramped position in the back is poor. VW is a lot better here. The lockable ute lid is a great idea. Star: 3/5

SAFETY: This rates under the Amarok despite having two more airbags. It adds stability control and ABS with an off -road mode. As in the VW, it has rear drum brakes. Braking performance is still great but a tad quaint. Navara also has five lap-sash seatbelts. Star: 2.5/5
DRIVING: This can out-accelerate most cars on the market. It’s also smooth and very quiet. The seven cogs in the box suit the engine and the fact it’s an auto makes it fine for the family. It’s also comfortable. What lets it down is the uncommunicative steering, which reduces precision while cornering. Star: 4/5
SCORE: 3.5/5
VW AMAROK ULTIMATE
Price: $58,490
VALUE: The Ultimate has all the extra fruit and is the most expensive Amarok. The Trendline ($47,990), with parttime 4WD and low-range gearing, is better for off -roaders. Ultimate has a permanent 4WD system without lowrange but gets leather, CD player, comfort suspension, dual-zone climate airconditioning and side steps. Star: 3.5/5
TECHNOLOGY: Australia gets only the 2 .0-litre twin turbo diesel engine across the Amarok range. It may be the smallest 4WD ute engine but with 400Nm from 1500rpm, it’s probably the best. A permanent all-wheel-drive system runs through a Torsen centre diff and there’s a switchable electric rear diff lock. Star: 5/5
DESIGN: This is arguably the prettiest and most purposeful 4WD dual-cab on the market. It’s efficient too, being the only one in its class to fit Euro or Aussie pallets sideways in the back. Argentine build quality is very good. The 19-inch wheels look good but give poor after-market tyre options, especially for off-road. Star: 4/5
SAFETY: The five-star crash rating is good news all-round. It complements the usual comprehensive safety gear – ESC, ABS and so on – but adds a secondary mode that compensates for off -bitumen roads. There’s seating for five and five lap-sash seatbelts. Star: 4/5
DRIVING: Until the auto arrives early next year, interest will be dull for the six-speed manual gearbox. The shift quality is firm and not as good as VW’s front-drive models. But the engine never stops giving. It’s a bit noisy but is economical (7.9L/100km). Despite the small engine, the gear ratios are perfect. Star: 3.5/5
SCORE: 4/5
VERDICT: My heart says Amarok but the Navara, with automatic, higher 3000kg tow rating, more features and so on is more versatile. It could be a tow car for grey nomads or a family car. But Amarok is a near perfect execution. If it had an auto it would be untouchable.
Volkswagen – 19pts
Nissan – 17.5pts
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V8 engine history

August 24, 2012 //
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Car lovers mistakenly claim the V8 as their own. NEIL DOWLING reports

IT was up in the air for over a decade before car makers recognised the performance benefits of the aircraft engine dubbed the V8.
The design – simply, V for its end-on plan shape and eight for the number of cylinders – was first patented in 1902 by French aircraft maker Leon Levavasseur and used in planes and speedboats from 1904.
Levavasseur’s engine layout was the result in creating a lightweight, compact yet powerful powerplant for his aircraft.
He named the engine Antoinette after the daughter of his financial backer and produced a range of units up to the 37kW V8 that weighed 86kg including cooling water – a power to weight ratio unmatched for 25 years.
Interest in the engine picked up after it pushed a plane to a new altitude record of 3600 feet in 1910 and was then used to power aircraft from French maker Voisin and Renault.
Though small numbers were transferred to limited edition and specialised sports cars, it wasn’t until 1914 that Cadillac became the first company to mass produce the automobile V8.
In its first year, the General Motors division of Cadillac sold 13,000 cars with the 5.4-litre L-head engines and subsequently became a predominant user of the V8 engine.
Another General Motors division, Oldsmobile, added a 4-litre V8 to its model range in 1916. Chevrolet, then an independent car maker, introduced a 4.7-litre V8 in 1917 but one year later dropped it from the range when the company was merged with GM. Chevrolet didn’t make another V8 until 1955.
Aircraft companies meanwhile continued to use the V8 with its biggest manufacturer being Hispano-Suiza. The Swiss-based company licensed its V8 single overhead cam aviation engines – with dual ignitions and in differing displacements for outputs from 112kW to 225kW – to companies in the UK, Spain, France, Italy and the US.
Almost 50,000 “Hisso” V8 engines were built during World War I and are claimed to have powered about half of all Allied military aircraft during that war.
In the 1920-1930 period there were V8s from car makers including Lincoln and Oakland – the latter, a division of GM, had a 63kW 4.1-litre engine – up to 1932 when the Oakland brand was discontinued and the V8 was used in cars from its sister company, Pontiac, but for only one year as Pontiac replaced it in 1933 with its smoother-running Silver-Streak straight eight.
Ford is credited as the first company to extensively use the V8.
It simply cancelled its six-cylinder programs, leap-frogging from its existing four-cylinder units straight to a range of V8s.
Ford’s “Flathead” V8 of 1932 powered almost all large Ford cars through to 1953 and was still being made until about 1970 by Ford licensees around the world.

Ignoring six-cylinder engines, at least for a few decades, worked well for Ford as the world entered a new era of personal freedom and increased wealth after World War II.
The more powerful V8 engine could fit into the engine bay once occupied by a six-cylinder engine and create cars that became a strong status symbol for its owners.
Car maker could also simplify production and offer the V8 as an optional upgrade to base models.
In Australia, the V8 engine has been made by Holden and Ford performance divisions – respectively Holden Racing Team and Holden Special Vehicles and Ford Performance Vehicles – since the late 1960s.
While Australian V8s were created mainly by using a US-made block then adding Australian heads, pistons and exhausts.
Exceptions were the small-block Holden V8 – the 4.2-litre 253, 5-litre 308/304 and 5.7-litre 350 – and the 1970 British Leyland alloy small-block V8 that, at 4.4-litres powered the Australian-made P76 sedan.
The Holden small-block was an all-Australian designed and manufactured cast-iron 90-degree pushrod overhead-valve engine, introduced in 1969 and ending life in 1999.
It was used , in a variety of Holden models including the Torana, Kingswood, Commodore and Monaro.
The only V8 engine now made in Australia is the 5-litre unit built by FPV for its Falcon-based range. It is the combination of US-sourced and locally manufactured parts.
Ford does not have a V8 in its Australian-made passenger-car Falcon range – a far cry from the 1970s when Ford was literally a powerhouse of V8 production.
Holden’s V8 comes complete from GM in Canada.
The US-made Cleveland V8 range ceased in the early 1970s and Australia imported the V8’s tooling to make a local version of the 351 and the Australia-only 302 Cleveland.
These Australian-built engines were also sold to De Tomaso for its Pantera and Longchamps models.
Ford ceased production of these V8s in 1982. The last Cleveland-powered Falcon was the XE range which comprised about 1400 of the 302s and 409 of the 351s.

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Eco-car choices

August 24, 2012 //
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NEIL DOWLING

ENVIRONMENTALISTS may tell you the best way to commute is by walking or cycling … but where’s the fun in that?
Carefully choosing a car that is economical, comfortable, roomy, fits into your green aspirations and affordable isn’t easy. But whatever you choose, it beats walking to work in the rain and cycling under a red-hot Perth summer sun.
There are four basic choices:
1. Small conventionally-powered car (Mazda2, Ford Fiesta, Honda Jazz and so on) – cheap to buy, run and repair. There are no complex engines and that means you won’t frighten the mechanic or incur the financial wrath of new-age technology. They save fuel by being small capacity engines in aerodynamic cars with fuel-sipping technology such as low rolling resistance tyres, stop-start (where the engine automatically turns off at the traffic lights and restarts when required) and lightweight components.
2. Hybrids (Toyota Prius, Honda Civic Hybrid, Lexus) – clever technology that has survived a decade of use in Australia without any major problems. Toyota says it is yet to replace a battery in cars as old as 10 years. Hybrids join a petrol engine with an electric motor. The extra power of the motor means the petrol engine can be smaller, so uses less petrol.
3. Electric (Mitsubishi i-MiEV, and soon Nissan Leaf, Renault Fluence ZE, Holden Volt) – runs by plugging it into the power point overnight. Good for short distances (about 120km is the max), quiet, small and efficient. More models are coming and there are public charging points for cars that feel drained. Ecologically perfect if the electricity comes from sustainable sources (not in Perth).
4. Diesels (Volkswagen Golf, models from Ford, Holden, Kia, Hyundai, Citroen, Peugeot and so on) – these are inherently fuel miserly cars that can go amazing distances between refuelling. They are equally as efficient in manual and automatic transmission versions and also employ some tricks – such as stop-start systems, low-resistance tyres and aerodynamic aids – to further reduce fuel use.

Heard the saying about running on the smell of an oily rag? Here’s the cars that can (almost) do just that. NEIL DOWLING reports

CAST off memories of the snail pace of smoke-belching diesel trucks or the lethargic acceleration of the old school bus.
Diesels are not what they were. The term – after inventor of the compression-ignition engine, Rudolf Diesel – applies to the type of engine and the type of fuel.
Such engines are noted for impressive torque (pulling power, hence the role in trucks) and low fuel consumption. Turbocharging, high-pressure injection of the fuel and smart electronics have overhauled the old image.
Today, you’re just as likely to get dragged off from the traffic lights by a diesel-engined car. Here’s just three of a growing range of diesel-engined passenger vehicles:
VOLKSWAGEN GOLF BLUEMOTION ($28,990): Golf can be played in a range of colours but to make it efficient, the best colour is blue.
In Volkswagen-speak, it’s BlueMotion, which is the in-house term for selected models tuned for maximum fuel economy and minimum emissions.
The Golf BlueMotion costs $28,990 – $1000 more than the Golf 77TDI that it replaced – but comes only with a manual gearbox. If that makes you sad, getting 3.8 L/100km will quickly put back your smile.
The BlueMotion is a feast of fuel-miser technology – low-rolling resistance tyres, a stop-start system, brake energy recuperation, slippery aerodynamics, tall gear ratios and a gearshift prompt indicator – are added to the 1.6-litre turbo-diesel Golf variant.
By comparison, the BlueMotion gets 3.8 L/100km while the old model recorded 4.9 L/100km. But it’s not just a boring eco-car to drive. The BlueMotion is a brisk performer with excellent handling and ride comfort.
It works as well in city traffic as it does lopping along a country road.
The pity is there is no automatic version, because it would make city motoring, surely BlueMotion’s heartland, more convenient.

HYUNDAI i30 ($23,590): This is a brand new, just out of the box model that replaces one of Australia’s top-selling small hatchbacks.
The German-designed hatchback sits on the same platform as its predecessor but is bigger where it counts, so that means increased cabin room for occupants and 11 per cent more luggage space.
But while it’s grown up a bit, the diesel engine has been made more economical. It gets an updated 1.6-litre turbo-diesel that Hyundai claims is capable of 4.5 L/100km as a six-speed manual and 5.6 L/100km when optioned with the six-speed automatic.
Key features include the Australian-tuned Flex Steer power steering which offers three driver-selected steering calibrations – normal, for the majority of drivers; comfort, that lightens steering feel for parking; and sport, which increases steering weight and feedback.

MAZDA CX-5 Maxx Sport ($39,040): These are selling like hotcakes because they are – at least in diesel form – very lively, economical and practical wagons.
There’s no doubt the CX-5’s success is due to it mimicing the appealing Mazda3 hatchback. But it’s a better vehicle than its sister thanks to smart engineering under the SkyActiv banner.
The technology covers body, engine, transmission, suspension and platform. In the CX-5 diesel’s case, it includes a fascinating bi-turbo four-cylinder diesel engine that when mated to a six-speed automatic, gets a mere 5.7 L/100km.
That makes it a class-leader in fuel economy, especially for an all-wheel drive. But it’s not the CX-5’s only trick. The SUV repeats the genre’s advantage of being very versatile and is compact enough to handle city traffic conditions.
It is also very comfortable and roomy – with excellent rear seat leg and head room – and though the cabin could be a bit more stylish, is clinical and simple to operate. The rear seats split (depending on the model, it’s 60/40 or 40/20/40) and fold flat so it’s a practical machine for carting luggage.
On the road the diesel version far exceeds the petrol-engine sibling in terms of performance. The diesel is more responsive and the substantial 420Nm of torque makes it scoff at carrying extra weight and is better suited to towing.

Hybrid isn’t necessarily a rose, but its fuel saving and environmental benefits can smell just as sweet. NEIL DOWLING reports.

SOME people get uncomfortable coming to grips with the term “hybrid” and its threat of grappling with a new tier of technology.
Don’t worry yourself – a hybrid car just uses two power sources and to you, the owner and driver, it requires almost no understanding.
Hybrids drive the same as a conventional car – perhaps a bit quieter and with a few strange and colourful dashboard lights – and can offer considerable fuel savings for inner city and suburban owners.
Just one statistic to contemplate before investing the extra money in a hybrid – it will take 11.5 years before the Honda Civic Hybrid’s fuel economy makes up for the $8000 premium over the petrol-only Civic. It’s just as long comparing the Prius with the Corolla. That said, among the hybrid choices are:
TOYOTA CAMRY HYBRID ($34,990): Clever Toyota has added the hybrid drive system to a car we all know. Driving a Camry Hybrid is no different from the normal automatic Camry and shares the same seven airbag, five-star crash rating and a full-size spare wheel.
The upsides are better fuel economy. Toyota claims 5.2 L/100km of standard petrol compared with 7.8 L/100km for the standard Camry. It’s also quieter and at $34,990, about $1500 more than a similarly-equipped petrol-only Camry.
But the Hybrid model can only tow 300kg and the boot is slightly smaller.
In addition to using one-third less fuel than the petrol Camry, it costs $130 for each of the five services for the first four years or 75,000km.
And as a final sweetener, the latest Camry Hybrid comes with very cheap 2.9 per cent finance and free 12-month comprehensive car insurance (valued at $833) until June 30.

HONDA CIVIC HYBRID ($35,990): The latest Civic is a big jump from the average build quality of its predecessor. It now looks less budget class, is up on quality and just feels a far better car to drive.
It uses two power sources – a petrol engine and an electric motor – but unlike the Toyota Camry (and Prius) which can separate the two whenever needed, in the Civic Hybrid they stay working together.
This is technically simpler but doesn’t equal the Toyota Prius’ miserly fuel consumption. The Civic Hybrid gets 4.4 L/100km against the Prius at 3.9 L/100km.
The new Civic Hybrid is more spacious than the old model and gets smaller batteries so the boot is bigger. But the rear seats don’t fold down to increase luggage space.
It gets a five-star crash rating, electronic stability and traction control, brake assist and six airbags but has a space-saver spare.
LEXUS RX450h Prestige ($89,788): The hybrid Lexus SUV comes in three models, Prestige, Sports ($96,787) and Sports Luxury ($108,900) but all share the same hybrid drive of a 3.5-litre V6 petrol engine mated to an electric motor. It’s claimed to get an average of 6.4 L/100km, a smidge more than a Ford Fiesta with a manual gearbox.
The two can separate so can drive the SUV independently or together.
It’s not a cheap carriage – making one wonder about the financial need to save on fuel costs – but rewards the owner with top-end features, depending on the model chosen.
The Sports Luxury delivers one of the car industry’s best audios – from Mark Levinson – and cossets the front-seat occupants in heated and ventilated perforated leather seats, adaptive cruise control, head-up display of speed, satellite navigation, automatic xenon headlamps with cornering function, rain-sensing wipers, front and rear parking sensors with camera and so on.
It has several safety systems to prevent a crash and minimise human damage, such as a pre-collision system, 10 airbags and lots of words joined together to create meaningless acronyms that make serious attempts at keeping occupants free of injury.
The Lexus is beautifully built, has a brilliant customer-care program in Perth, has a four-year warranty and is an SUV that is eerily quiet, effortless in performance and as comfortable as your favourite loungechair.

 
Don’t dismiss petrol cars as they may just just as economical in your case. NEIL DOWLING reports
BUYERS seeking economy cars may steer away from conventional petrol engines but in fact they can be more cost-effective than some alternative-fuelled cars.
The general rule of thumb is that motorists travelling less than 30,000km a year are probably better off with a petrol car than a diesel.
Not everyone fits this mold, however, as country drivers may tend to diesel because of its fuel economy and especially the extra distance between refuelling.
City folk who only use their cars for commuting may see the better fuel consumption of diesels as being attractive, however they must factor in the extra price to buy the diesel car and the extra cost of the fuel.
So here’s three petrol-fuelled vehicles that may make more sense than going alternative:
FIAT 500 TWINAIR ($22,990): A small car with inbuilt Italian passion, new-age technology and a price around $20,000 should be a winner.
But Australians have been slow to embrace the Fiat 500 in the wake of a relentless procession of Korean and Japanese rivals. Now the 500 has a new engine – and it’s a 875cc two-cylinder turbocharged petrol unit – that claims a tiny 3.6 L/100km consumption. Even the version with an automated gearbox gets 3.9 L/100km.
This new engine slashes CO2 emissions by more than 30 per cent, emitting just 90 grams of CO2 per kilometre. Fiat said it makes the TwinAir produce less CO2 than any production petrol engine.
Of course, it’s not particularly quick and owners who push the car hard won’t get anywhere near the claimed fuel consumption.
Compared with Fiat’s top-selling 1.2-litre petrol engine in Europe, the TwinAir has 23 per cent more power yet 15 per cent lower emissions and fuel consumption. Performance is comparable with the 1.4-litre non-turbo version.
Because it’s good at cruising, you may consider the convertible version.
Recent changes to Fiat’s distribution in Australia will see the price of the TwinAir fall below $20,000. But that hasn’t happened just yet.
FORD FIESTA: (from $16,990): These are really well made, affordable and zippy. Though you can pay down around $17,000, the Zetec ($20,990) offers a bit more comfort, more features and doesn’t look like a renter.
Fiesta is made in Thailand (as with the Mazda2) and is big on value. The Zetec gets sports suspension, 16-inch alloys, cruise control, sports seats and is one of the few small cars with USB and iPod audio integration.
The 1.6-litre engine is a delight to drive as a manual but the six-speed dual-clutch auto is definitely worth the extra $2000.
Ford claims 6.1 L/100km for both the auto and manual – showing the efficiency of the auto – with similar performance.
Typical of the small-car class, the Fiesta’s cabin is noted by its hard plastic but it’s well executed. It provides a sporty driving position and the seats are comfortable, if a bit narrow.
In the unlike column are the lack of a spare wheel – it’s an option – and the tiny audio buttons.
KIA OPTIMA (from $30,490): The head-turning Optima – along with the Mazda6, Honda Euro and Holden Cruze – bridges the gap between needing cabin room but wanting a relatively economical powerplant.
The 2.4-litre engine has sufficient grunt and is a smooth rider and though the Optima’s is a family-size car, has a commendable fuel consumption of 7.9 L/100km. Then there’s its value for money.
Even in the entry-level Si ($30,490) version it gets a six-speed automatic gearbox, reverse park sensors with camera, all the top safety features, automatic headlights, fog lights, height adjustable driver’s seat, split-fold rear seats, electric folding and heater mirrors, cruise control and USB/iPod with Bluetooth.
It’s a very attractive machine that looks like its priced more than you paid. People who want to do exactly that – pay extra – can fork out $6500 more for the Platinum version that adds leather seats, 18-inch wheels, a premium sound system, sunroof and heated and ventilated front seats.

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Feature – Car servicing costs

August 24, 2012 //
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NEIL DOWLING
AUSTRALIA’S cheapest cars to own and service are Korean after Hyundai and Kia unveiled their cost-cutting capped-price service programs.
Hyundai’s three-year iCare program is within its five-year warranty on the car. For buyers of the Hyundai i30 – one of Australia’s most popular small cars – the maximum cost for its annual service is $219.
That is about one-third of the cost of servicing a Mazda3.
Hyundai Australia’s director of Aftersales, Nick Aravanis, says it was “a great service to our customers long after the sale has been made and the car has been taken home”.
“The Hyundai iCare program with the inclusion of the capped price service is an excellent way to broaden this commitment.”
Hyundai’s iCare program, announced this week concurrent with the company’s milestone one-millionth car production, beat by a few days a similar program to be unrolled from Kia.
Kia Connect will be launched on Wednesday, August 1, and covers all Kia vehicles for five years – two years more than Hyundai – with set service costs and includes free roadside assist for buyers who stick with the program.
Most car companies that offer a capped service program run for only three years.
Kia’s roadside assist is a 12-month plan but regenerates for another year after customers have their vehicle serviced.
“It gives value to customers and it gives customers back to Kia service centres,” says Kia Australia spokesman Kevin Hepworth.
Kia says about 50 per cent of new owners return their car to the dealership for the first service. But that retention rate falls to about 35 per cent by the third year.
The Kia Connect program aims to significantly boost that retention rate.
“The service has to be at an authorised dealership,” Hepworth says.
Kia has a five-year and unlimited kilometre warranty. New vehicles have a complimentary service at 3000km and then intervals at every 12 months or 15,000km.
The program, which starts on Wednesday, August 1 for new cars and September 1 for existing warranties, also covers Kia cars that are currently under a new-car warranty and will apply for the duration of the warranty.
“Kia Connect stays with the car so it is transferable to the car’s next owner during the warranty period,” Hepworth says.
“Different models will have different capped service prices, as will petrol cars compared with diesel cars. It is very specific to the model.”
Kia Connect also applies to fleet customers where the warranty is still five years but limited to 130,000km. The exceptions are rentals, taxis and hire cars.
Kia says one advantage of its new program is the need to service cars only once a year.
“Some of our rivals need their cars serviced twice a year,” he says.
“We only need servicing once a year. That obviously saves money and saves the owner time.”
Competition models that have a capped-price service program and need servicing twice a year include Toyota and Mazda.
“It’s all down to adding value to our product and keeping customers for life,” he says.

BREAKOUT:
NEIL DOWLING
WE’VE all been there – dreading the time you have to pick up the car
from the service centre and getting the shock of the bill.
You’d think budget cars would get budget service costs, but it’s not always the case.
So look beyond the purchase price before you buy a small car. Some
carmakers have fixed, or capped, service charges and more
manufacturers are offering set prices so you won’t have the pre-bill
jitters.
But it’s not the whole story. European cars are sometimes cheaper to service than Japanese cars and fuel-efficient diesel cars are more expensive to service – some so much that it may be financially prudent to buy a petrol model.
Some car makers – Mazda, Toyota and Subaru – make you visit the service centre twice a year while most only want to see you once. That indicates you’ll pay twice as much as the owner of a car needing an annual service – but that’s not always true either.
Use this guide to see how much a small car will cost you in servicing and fuel bills – the money that’s coming out of your pocket. The results may surprise you.
COSTS TO SERVICE OVER 3 YEARS:
LIGHT CARS
– Hyundai Accent (12mths/15,000km*) – $567
– Holden Barina (12months/15,000km*) – $740
– Toyota Yaris (6months/10,000km*) – $780
– Kia Rio (12mths/15,000km*) – $841
– Suzuki Swift (12months/15,000km) – $890
– Hyundai i20 (12months/15,000km) – $1245
– Mazda 2 (6months/10,000km) – $1903.50
* Fixed or capped price service program

SMALL CARS
– Hyundai i30 (12mths/15,000km*) – $657
– Ford Focus (12months/15,000km*) – $720
– Holden Cruze petrol (12months/15,000km*) – $740
– Toyota Corolla (6months/10,000km*) – $780
– Kia Cerato (12mths/15,000km*) – $1012
– Hyundai i30 (12months/15,000km) – $1202
– Mazda 3 (6months/10,000km) – $1989.09
* Fixed or capped price service program
COMPACT SUVs
– Toyota RAV-4 (6months/10,000km*) – $1020
– Kia Sportage diesel (12mths/15,000km*) – $1175
– Hyundai ix35 diesel (12mths/15,000km*) – $1197
– VW Tiguan 132 (12months/15,000km) – $1250
– Nissan X-Trail petrol (6months/10,000km*) – $1725
– Mazda CX-5 (6months/10,000km) – $1806
– Subaru XV (6months/12,500km) – $1914
* Fixed or capped price service program
Note: Kia Connect is a five-year program.

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Feature – global manufacturing

August 24, 2012 //
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Global manufacturing means you may never pick where your new car comes from. NEIL DOWLING reports

THE downturned face of the new Captiva owner says it all – how would he have guessed that his new Holden was made in Korea.
He isn’t alone. Thousands of happy new-car owners in Australia may be shocked to learn their shiny driveway adornment isn’t what they thought.
But do they really care?
Allpike Peugeot in Perth says the days of the parochial Peugeot buyer are pretty much over, replaced with buyers who are looking across a broad range of car makes.
Peugeot markets two SUVs made by Mitsubishi in Japan and badged the 4007 and 4008. Allpike’s manager Martin Murphy says the vast majority of buyers have already done their research.
“They know it’s a joint-venture product,” he tells Carsguide.
“In the case of the 4008, it’s not about the country of origin – it’s about the product. Buyers know it’s based on a Mitsubishi ASX and go for the Peugeot’s style and the price.
“The 4007 is a different concept because it has a Peugeot diesel engine. That is more likely to attract a buyer wanting everything that is a Peugeot, and diesel engines are one of the company’s hallmarks.”
 
Welcome to the new age. Cars are no longer reflections of the culture and history of a nation and sentimentalists and patriots are no longer part of the motoring clientele.
German-based car companies make the products in Spain, Mexico and Slovakia; American carmakers source from Austria, China and Korea; the French from Japan, Korea and Poland; and the Japanese from Thailand, Indonesia and India.
Only 7136 cars were made in Australia in the seven months to July this year. By contrast, 64,825 were imported.
Where they come from is a United Nations teatowel of colourful diversity.
From Argentina to Hungary, Mexico to Turkey, Taiwan to Brazil – and even a country called “Other” – there are 27 national sources of our cars.
It could be sacrilege for some patriotic car owners but even a sign of our culturally-diverse community for others. But the real answer is profits.
Nissan Australia’s CEO Bill Peffer, said his company’s strong finish to 2011 was due, in part, to being able to get cars from around the world.
“Being able to source product from five different global locations gave us the coverage to avoid the worst of natural disasters which impacted production in Thailand and Japan in 2011,” he said.
This diversity also extends to car parts. About 60 per cent of the parts, by value,  that make a Holden Commodore come from Australia while 65 per cent of a Toyota Camry originated in Australia. The Ford Falcon and Territory are the most Australian with about 75 per cent of the value of parts.
The biggest incentive to set up a factory in another country is generous subsidies offered by the government of that country. It’s been going on for decades as a way of luring industry and boost employment.
This has been the case in countries including Thailand and Spain but even ignited by states – Victoria and South Australia are financial contributors to the respective car-making plants in their states and the practice is repeated in some of the southern states of the USA.
Under massive political and community outrage, Renault opened a $1.3 billion car plant in Morocco in January this year. Renault, 15 per cent owned by the French Government, simultaneously announced cut-backs in workers at its two French plants.
The move to build three low-cost models of subsidiary firm Dacia in Morocco was helped by the Moroccan Government agreeing to waive taxes for the first five years, including all duties on cars exported to foreign markets.
Lower production costs go hand-in-hand with building cars in foreign – some third-world – countries. Labour costs are lower, though most car assembly is done by machines.
“The cost of labour in emerging markets continues to be a fraction of that of developing world,” says accounting and financial group Deloitte in its 2012 report on the car industry “Accelerating Toward 2020”.
Labour in US car plants average about $30 an hour. In Japan, it’s $34 and Western Europe, $27. But Mexico, where Volkswagen makes the Beetle and Jetta, it’s $4; Eastern Europe is $12; in South Korea and Brazil it is $8; and India is $5. The surprise is that Chinese car workers get $22 an hour, much higher than public perception.
Though labour costs are low in many countries, Deloitte says the main reason for a predicted car manufacturing boom in emerging markets – China, South America, South-East Asia and India – is that it places production in the areas poised to have the highest demand.
“By 2020, there will be fewer cars sold as imports from outside a trade zone (that is, from Korea or Thailand to Australia),” Deloitte’s report says.
“Even those cars with foreign labels will be produced regionally.”
These low-cost, densely populated manufacturing bases that have a ready market for the cars it makes will come “at the expense of higher cost exporters such as Spain and Germany in the EU, and Canada and the US.”
“This strategy is already unfolding. Suzuki, for example, established plants in Hungary to supply the EU while Volkswagen and Nissan manufacture in Mexico to supply North America (and others).”
WHO, WHAT AND WHERE:
rrnfASTON MARTIN: Stand-alone company. Mainly owned by Middle East financiers.
AUDI: Owned by Volkswagen.
BMW: Owned by family company Quandt family and smaller shareholders. Owns Rolls-Royce and Mini and has alliances with PSA Peugeot for engines and Brilliance (China).
CHERY: Stand-alone (China)
CHRYSLER: Owned by Fiat. Is the parent company of Dodge and Jeep. Has shareholdings in engine makers Detroit Diesel and VM Motori.
CITROEN: Owned by the PSA group that also owns Peugeot and Michelin.
DODGE: Part of Chrysler.
FERRARI: Owned by Fiat. The Formula 1 and motorsport division is separate and privately held.
FIAT: Owns Chrysler (and with it Jeep and Dodge), Maserati, Ferrari, Alfa Rome and Lancia. Has a joint venture to make vans with PSA.
FORD: Public company. Brands are Ford, Mercury and Lincoln. Previously owned Aston Martin, Mazda, Volvo and Jaguar Land Rover. Small-capacity diesels from PSA.
FPV: Owned jointly by Prodrive (which has interests in Aston Martin) and Ford.
GEELY: Owns Volvo.
GENERAL MOTORS: Brands are Chevrolet, Buick, GMC, Cadillac, Opel, Holden and Vauxhall. Owns 7 per cent of PSA.
GREAT WALL: Government-owned state enterprise of China.
HOLDEN: Owned by General Motors. Sources Australian-sold vehicles from Korea (Captiva, Cruze sedan, Barina, Spark) and Thailand (Colorado).
HSV: Owned by Holden.
HONDA: Stand alone company. Brands are Honda and Acura.
HYUNDAI: Stand-alone company. Owns Kia.
ISUZU: Owned by Mitsubishi. Has joint ventures with GM. Makes diesel engines for Opel.
JAGUAR: With sister company Land Rover is owned by Indian conglomerate Tata.
KIA: Owned by Hyundai.
LAMBORGHINI: Owned by Audi which is, in turn, owned by Volkswagen. Lamborghini also owns Ducati.
LAND ROVER: See Jaguar.
LEXUS: Owned by Toyota.
LOTUS: Owned by Proton.
MASERATI: Owned by Fiat.
MAYBACH: Closed. Was owned by Mercedes-Benz parent Daimler.
MAZDA: Stand alone company. Previously majority owned by Ford.
MERCEDES-BENZ: Owned by Daimler AG. Owns carmakers Smart, Maybach, Mercedes and AMG, and truck-bus makers Daimler, Freightliner, Mercedes-Benz, Mitsubishi Fuso, Thomas Built Buses, Orion, Setra, Western Star and Sterling Trucks. Has alliances with Renault to each build engines for cross models and a shareholding in Tesla and BYD (China).
MINI: Owned by BMW. Engines from PSA and Toyota.
MITSUBISHI: Part of the Mitsubishi Group. Has a major share in Isuzu. Has alliances with Peugeot (Outlander/4007; ASX/4008; iMiEV/ion) and Nissan (new Colt).
NISSAN: Brands are Nissan, Datsun and Infiniti. Owns 15 per cent of Renault.
OPEL: Owned by GM. Its diesel engines are made by Isuzu.
PORSCHE: Owned by Volkswagen.
PROTON: Is owned by the Malaysian Government’s investment arm (57%) and private Malaysian company DRB-Hicom Berhad. Also owns Lotus.
PSA: Parent of Peugeot, Citroen and Michelin. Owned 7 per cent by GM. Makes engines and hybrid components for BMW-Mini and Ford small-car diesels. Makes LCV vans with Fiat and soon also for Toyota Europe. Makes cars with Toyota (Aygo) and Mitsubishi.
RENAULT: Owns 44 per cent of Nissan and Infiniti. Owns Dacia (Romania), Samsung (Korea) and Lada (Russia). Is co-developing the 2014 Smart ForTwo.
ROLLS-ROYCE: Owned by BMW.
SAAB: Suspended. Previously owned by Dutch firm Spyker and General Motors. Sourced engines from GM and BMW.
SKODA: Owned by Volkswagen.
SMART: Owned by Mercedes parent, Daimler. The 2014 ForTwo will be jointly developed with Renault.
SSANGYONG: Owned by Mahindra (India) but vehicles built in Korea.
SUBARU: Majority owned by Toyota.
SUZUKI: Majority owned by Volkswagen. Owns 50 per cent of Maruti (India).
TOYOTA: Owns Daihatsu, Lexus and is major shareholder in Subaru, Hino and Yamaha. Has an agreement with BMW to jointly make electric cars. Has an interest in Tesla. Makes diesel engines for Mini. Jointly makes cars with PSA (Aygo)
VOLKSWAGEN: Owns Audi, Skoda, Seat, Bentley, Bugatti, Lamborghini, Porsche, MAN and Scania. Has 19.9% of Suzuki. Indirectly owns Ducati.
VOLVO: Owned by Geely of China.
WHERE’S THAT FROM?
Audi A1: Belgium
BMW 3-Series: South Africa
Mercedes-Benz C-Class: Germany
Audi Q7: Slovakia
Volkswagen Polo GTI: Spain
Ford Fiesta: Thailand
Renault Latitude: Korea
Nissan Micra: Indonesia
Hyundai i20: India
Holden Captiva: Korea
Smart: France
Toyota Hilux: Thailand
Honda Accord: Thailand
Volkswagen Beetle: Mexico
Volkswagen Amarok: Argentina

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