Vfacts February 2011

[Bossxr8]

Originally Posted by BroadyFord

To throw in my two cents:

I sometimes think; if some sort of disaster i.e. earthquake, fire etc were to bring down or destroy FoA's factory at Broadmeadows, would they even bother rebuilding it based on their current position or would it be an early get-out-of-jail-free-card for them to shut down??

We were told during AU that if the factory burnt down it wouldn't be rebuilt, so if that happened now it would be the same deal.

[Jason[98.EL]]

Originally Posted by jpd80

It only takes two months of bad sales and everyone is calling to stop the Falcon...
The reason Falcon sales are so low is because fleets traditionally buy a lot of Falcons this time of
the year and with nos station wagons or LPG available, there goes at least 1000 - 1500 sales.
The back story is that FoA now have to walk the fine lkine of profitability and managed costs,
by stretching out developments, it allows them to spread the costs and avoid red ink
but sometimes the public sees the drop in sales as cause for alarm.

I am surprised to see so many unsold cars being stacked up at Broadmeadows and
I thought the most of builds were customer orders, has Ford resumed dealer stock builds?

Agreed

Ford Au know where they stand and i am sure that they will pick back up soon as the new models come on line

[prydey]

Originally Posted by The Snout

I can provide those 10 years of annual sales figures in crayon if it makes it easier for you to follow. Hint, it isn't going up. Go take another look and report back.

do you look at the whole market place as a whole and different trends in different segments? how many commodores were being sold 10yrs ago? guess what, they are trending down as well. the slope may not be as steep but they are still trending down.

the buying public are moving away from the larger cars and buying mid cars and suv's. like i said, look at the big picture.

[The Snout]

Originally Posted by prydey

do you look at the whole market place as a whole and different trends in different segments? how many commodores were being sold 10yrs ago? guess what, they are trending down as well. the slope may not be as steep but they are still trending down.

the buying public are moving away from the larger cars and buying mid cars and suv's. like i said, look at the big picture.

You could have just said you understand the figures now. Glad to have shed light on it for you.

[Dr Smith]

Originally Posted by The Snout

I can provide those 10 years of annual sales figures in crayon if it makes it easier for you to follow. Hint, it isn't going up. Go take another look and report back.

Raw numbers is one thing however how about you also show percentage of overall large car segment to also give us a full picture.

[The Snout]

Originally Posted by Dr Smith

Raw numbers is one thing however how about you also show percentage of overall large car segment to also give us a full picture.

The big picture just agrees with me. It's a dying segment. Next.

[Dr Smith]

Originally Posted by The Snout

The big picture just agrees with me. It's a dying segment. Next.

I wish I was always right...lol...my point was that just maybe Ford is actually doing as best as it can considering it has no wagon, LPG model, XR8 and the segment has dropped from just below 25% of the whole market to below 10% today. What brand of crayons do you use?

[The Snout]

Originally Posted by Dr Smith

I wish I was always right...lol...my point was that just maybe Ford is actually doing as best as it can considering it has no wagon, LPG model, XR8 and the segment has dropped from just below 25% of the whole market to below 10% today. What brand of crayons do you use?

As I said. Stick a fork in it, she's done. Your figures just strengthen my argument further. No product, no sales. Perhaps you should stick to fingerpainting.

[Dr Smith]

Originally Posted by The Snout

As I said. Stick a fork in it, she's done. Your figures just strengthen my argument further. No product, no sales. Perhaps you should stick to fingerpainting.

I'm still at the stick figure level....and my teacher is yet to let me have my biro pen licence.

[jpd80]

Originally Posted by The Snout

As I said. Stick a fork in it, she's done. Your figures just strengthen my argument further. No product, no sales. Perhaps you should stick to fingerpainting.

So in your opinion, Ford are stupid for bringing out FG II later this year with touchscreen, Ecoboost and LPG?

What strategies should they be adopting if not continuing with Falcon?

[The Snout]

Originally Posted by Dr Smith

I'm still at the stick figure level....and my teacher is yet to let me have my biro pen licence.

My smart **** comments aside, I agree Ford have cut the balls off of the product offerings of Falcon and it affects sales. But that's all their own fault.

IMO, Ford have death ridden the Falcon themselves with their choices, not offering XR8, not morphing the wagon into a more lifestyle vehicle (sportwagon or whatever) , forever delivering LPG and Ecoboost, and on and on.

Sales figure in that segment may be dropping, but I can't accept where Falcon is right now is 'best effort'.

[Dr Smith]

Originally Posted by The Snout

My smart **** comments aside, I agree Ford have cut the balls off of the product offerings of Falcon and it affects sales. But that's all their own fault.

IMO, Ford have death ridden the Falcon themselves with their choices, not offering XR8, not morphing the wagon into a more lifestyle vehicle (sportwagon or whatever) , forever delivering LPG and Ecoboost, and on and on.

Sales figure in that segment may be dropping, but I can't accept where Falcon is right now is 'best effort'.

Oh no I agree they should be selling more FG's. Seriously, putting away away any brand fanship (and I do own a G6ET) however, model for model apart from SS vs past XR8 it would only be $$ that would have made me buy a VE over the FG equivalent. Unfortunately buying using your head doesn't apply to the cars sales game all the time otherwise the numbers should be different.

[The Snout]

Originally Posted by jpd80

So in your opinion, Ford are stupid for bringing out FG II later this year with touchscreen, Ecoboost and LPG?

What strategies should they be adopting if not continuing with Falcon?

Ecoboost and LPG and just life support to keep the corpse alive until 2015/16 (whenever the replacement car and strategy arrive). I've no doubt IMO if LPG and Ecoboost didn't arrive Falcon numbers would be below 1000 in 4 years time or sooner.

My 'fork in it, shes done' comments is aimed purely at it being the last full Aussie Falcon. Not at pulling the model out of circulation right now.

I'd love to have seen the Oz Falcon exported and embraced overseas, but that's not going to happen. So I rather effort now go into getting as much design content and contribution and secure manufacturing into whatever OneFord product we get instead.

[jpd80]

Ford are on extremely tight budgets at the moment, $230 million for Territory and FG II.
There's not a whole lot of room to move with that small amount of cash but I think that
the cost of developing sport wagon far outweighed any potential return it would bring.
Whining about sales and then suggesting $200 - 300 million versions is simply crazy.

The only reason Holden developed VE Versions of Ute and Sportwagon was because they
latched them to approved exports as Pontiacs that were subsequently canceled by GM NA,
does anyone here think Holden would have developed those two models without exports?

probably why Holden hasn't made a cracker since 2005, they spent it all on product
that GM NA then turned around and canceled on them, so sad to see....


My hope is that Ford gets it head down and becomes as efficient as possible
even if that means back ending costs like power train /electricals / suspension
with next mustang to make the sums right, but also keep pushing all other products
much more than they have in the past, that's the only way to change perception...

[jpd80]

Originally Posted by The Snout

Ecoboost and LPG and just life support to keep the corpse alive until 2015/16 (whenever the replacement car and strategy arrive). I've no doubt IMO if LPG and Ecoboost didn't arrive Falcon numbers would be below 1000 in 4 years time or sooner.

My 'fork in it, shes done' comments is aimed purely at it being the last full Aussie Falcon. Not at pulling the model out of circulation right now.

I'd love to have seen the Oz Falcon exported and embraced overseas, but that's not going to happen. So I rather effort now go into getting as much design content and contribution and secure manufacturing into whatever OneFord product we get instead.

Sometimes, you have to sink really low before a change is possible - I wonder if
maybe buyers are giving up on Falcon much sooner Ford thought they would...

Now that does raise a serious problem for Ford Austraila,
is the Falcon becoming a great car that no one wants?

[The Snout]

Originally Posted by Dr Smith

Oh no I agree they should be selling more FG's. Seriously, putting away away any brand fanship (and I do own a G6ET) however, model for model apart from SS vs past XR8 it would only be $$ that would have made me buy a VE over the FG equivalent. Unfortunately buying using your head doesn't apply to the cars sales game all the time otherwise the numbers should be different.

I notice your G6ET is in ego. You have my envy and congratulations. The G6ET is IMO the finest Falcon made and ego the colour I would get if I were lucky enough to have one.




Normal service resumed.

[jpd80]

Originally Posted by The Snout

I notice your G6ET is in ego. You have my envy and congratulations. The G6ET is IMO the finest Falcon made and ego the colour I would get if I were lucky enough to have one.




Normal service resumed.

I wonder what the sales would have been like if Ford had just imported the
Ecoboost Mondeo now and skipped doing the Ecoboost Falcon altogether,
allowing them to delivered EcoLPI to us by now and not lost as many sales.

[The Snout]

Originally Posted by jpd80

I wonder what the sales would have been like if Ford had just imported the
Ecoboost Mondeo now and skipped doing the Ecoboost Falcon altogether,
allowing them to delivered EcoLPI to us by now and not lost as many sales.

While great for Mondeo, can only guess Ford decided that while Mondeo would survive Ecoboosting the Falcon, Falcon may not survive a Ecoboosted Mondeo stealing sales. But I agree on the sentiment, wish Ecoboost was already here, seems a long time coming.

[jpd80]

Originally Posted by The Snout

While great for Mondeo, can only guess Ford decided that while Mondeo would survive Ecoboosting the Falcon, Falcon may not survive a Ecoboosted Mondeo stealing sales. But I agree on the sentiment, wish Ecoboost was already here, seems a long time coming.

Most likely so but isn't it strange how the fortunes of the two cars can reverse in such a short time,
it's getting more apparent that both cars have a lot more overlap than Ford cares to admit and if Ford
could get a good Mondeo supply (something FoE cant give) I think Falcon would be in trouble.

Perhaps our next local car should be Mondeo built alongside Falcon and Territory,
the higher price point would more than justify it compared to the ill fated Focus plan.

[DanielXR8]

Originally Posted by The Snout

My smart **** comments aside, I agree Ford have cut the balls off of the product offerings of Falcon and it affects sales. But that's all their own fault.

IMO, Ford have death ridden the Falcon themselves with their choices, not offering XR8, not morphing the wagon into a more lifestyle vehicle (sportwagon or whatever) , forever delivering LPG and Ecoboost, and on and on.

Sales figure in that segment may be dropping, but I can't accept where Falcon is right now is 'best effort'.

The Falcon has been undercapitilised for a quite a while. Almost like they don't plan replacing it and are only funding what they feel they need to do to keep some volume of sales for the model life.

[The Snout]

Originally Posted by DanielXR8

The Falcon has been undercapitilised for a quite a while. Almost like they don't plan replacing it and are only funding what they feel they need to do to keep some volume of sales for the model life.

Yeah I absolutely agree. I've never thought LPG and Ecoboost etc was meant to turn it around, just to address the slide long enough to keep some sort of presence in the large car market until OneFord arrives.

[DanielXR8]

Originally Posted by jpd80

It's not like it would help them any, Holden has made losses every year since 2005,
Holden's extra sales haven't helped worth a damned, all those V8 sales and still losses.

Maybe Ford's restructuring to build at lower numbers actually saves them that much more..
perhaps your basic premise that Commodore manufacturing costs are the same as Falcon
are completely wrong...

If you argued that Fords management were somehow 50% better at getting efficiencies then Holden with the same pool of skilled people in the same industry, in the same country, with the same third party suppliers, you would still say Falcon is bleeding money more then Commodore, just on pro rata sales volume.

You can only spin for so long, before you get dizzy.

Falcon is in serious trouble and the next few months worth of releases for Falcon will no doubt determine if this generation Falcon sees out the planned model cycle in 2015/16 or if it will be cut short.

BTW I'm not arguing that Commodores future is at present all rosey, just it has a longer stay of execution on current sales and on its export market potential.

Dan

[jpd80]

Originally Posted by DanielXR8

If you argued that Fords management were somehow 50% better at getting efficiencies then Holden with the same pool of skilled people in the same industry, in the same country, with the same third party suppliers, you would still say Falcon is bleeding money more then Commodore, just on pro rata sales volume.

You can only spin for so long, before you get dizzy.

Dan, sales do not equal profit and in the past five years,
Holden has had mega production and exports compared to Ford
yet Ford has actually made smaller losses than Holden, what does that tell you?

It all has to do with Holden running two shifts, before Cruze they were in queer street.

Ford Austraila:
2005 Profit $148.2 M
2006 Loss - $40.3 M
2007 Loss -$87.2 M
2008 Loss -$274 M (-14) Only $14 M = automotive loss, rest = superannuation top up and redundancy for 600 workers.
2009 Profit $16.0 M
TOTAL = LOSS $ 240 Million

FG Falcon saw Ford turn the corner and become profitable again

Holden
2005 Loss - $144.6 M
2006 Loss - $146.6 M
2007 Loss - $6 M
2008 Loss - $70 M
2009 Loss - $212 M
TOTAL = LOSS $578 Million

Up until 2010 VE Commodore hasn't returned Holden to profitability.


So yes, Ford's management have done a great job in containing red ink,
even when rightsizing the plant and topping up pensions are added in.

BTW, GM hasn't topped up Aussie worker's pensions yet, world wide
they are still around $17 Billion in the red in unfunded pensions.

[vztrt]

Originally Posted by jpd80

Dan, sales do not equal profit and in the past five years,
Holden has had mega production and exports compared to Ford
yet Ford has actually made smaller losses than Holden, what does that tell you?

Holden also runs 2 shifts while Ford has only the one.

[burnz]

Originally Posted by jpd80

Dan, sales do not equal profit and in the past five years,
Holden has had mega production and exports compared to Ford
yet Ford has actually made smaller losses than Holden, what does that tell you?

It all has to do with Holden running two shifts, before Cruze they were in queer street.

Ford Austraila:
2005 Profit $148.2 M
2006 Loss - $40.3 M
2007 Loss -$87.2 M
2008 Loss -$274 M (-14) Only $14 M = automotive loss, rest = superannuation top up and redundancy for 600 workers.
2009 Profit $16.0 M
TOTAL = LOSS $ 240 Million

FG Falcon saw Ford turn the corner and become profitable again

Holden
2005 Loss - $144.6 M
2006 Loss - $146.6 M
2007 Loss - $6 M
2008 Loss - $70 M
2009 Loss - $212 M
TOTAL = LOSS $578 Million

Up until 2010 VE Commodore hasn't returned Holden to profitability.


So yes, Ford's management have done a great job in containing red ink,
even when rightsizing the plant and topping up pensions are added in.

BTW, GM hasn't topped up Aussie worker's pensions yet, world wide
they are still around $17 Billion in the red in unfunded pensions.

holden also shut the foundry and payouts 75million..
superannuation top up as well

[jpd80]

Originally Posted by vztrt

Holden also runs 2 shifts while Ford has only the one.

I said that in my earlier post.
Holden needs Cruze to justify the second shift, without it the Commodore isn't viable,
that's what GM told US Treasury in their sustainablilty plan whilst in Chapter 11.

That's the problem, Holden is all geared up for higher production levels and cannot survive
at lower rates, Ford can because they right sized their production to true market size.

Some people on here still do not understand that you can make fewer cars and still be more profitable
than the guy making twice as many but that stupid mentality is what sent GM broke in the states.

This is "One Ford" proving that if you control costs and stop overproducing cars you can still make money.
2009 was one of Ford's lowest production years and they managed a profit, how was that possible?
By controlling costs and making sure that every vehicle sells at a profit.

[jpd80]

Originally Posted by burnz

holden also shut the foundry and payouts 75million..
superannuation top up as well

OK, good find but their losses between 2005 and 2009 are still twice that of Ford.
So Ford still has a foundry but not sure that billion dollar brake contract is signed yet...

[Jesmol]

Just had a look at the vfacts, wow.......not good.

Ford actually only sold 1501 FG's, there's also 71 Wagon sales in the data (most have some old dealer stock floating around)

They built 1870 FG sedans, more stock injected despite the down days. Doesn't bode well for the rest of the year.

[vztrt]

http://www.goauto.com.au/mellor/mell...25784C0024369C

NZ sales defy quake

Toyota retains its stranglehold on number one position

7 March 2011

By JACQUI MADELIN in NEW ZEALAND

THE New Zealand vehicle industry ended February in a subdued state despite increased sales, with the country in a national state of emergency and a number of dealerships in its second-largest city still behind a cordon erected around Christchurch CBD after the February 22 earthquake.

Nevertheless, new vehicle sales continued their upward trend, with the 6404 tally a 13.2 per cent increase on February 2010.

New passenger registrations were up 12.6 per cent, while commercials rose 15.0 per cent. Used imports dropped 3.3 per cent, to 6748.

Toyota remained at number one with 1261 sales, an increase of 27.5 per cent on the same month last year.

Ford followed on 596, down 1.7 per cent.

Ford NZ managing director Trevor Auger, commenting on a 1.7 per cent decrease to 596 units, said bigger organisations are taking longer to make buying decisions, which after the Christmas closedown has meant fleet-oriented dealers have had a real battle.

However, with new Mondeo launching on April 1, followed by Territory, he expects Ford sales will rise this year.

Hyundai almost surpassed Ford, its 583 February tally a rise of 48.3 per cent and taking the Korean brand into third place, in part due to Government fleet orders for the i30.

Holden dropped to fourth place with 499 sales (down 9.4 per cent), followed by Suzuki in fifth at 473 (a rise of 37.5 per cent), with Mazda a close sixth with 472 sales (up 2.2 per cent).

Mazda NZ managing director Andrew Clearwater said private buyers have not yet returned to the market and what remains is government and large fleet sales. “We are in the small fleet and private market – the businesses that are struggling,” Mr Clearwater lamented.

Nissan sales fell 4.3 per cent to 423 due to stock supply issues, according to Nissan NZ managing director John Manley. He expects a boost in sales from new product such as Juke, but believes the industry could flat-line after the earthquake.

Mitsubishi recorded its 13th successive month-on-month improvement, lifting 11.8 per cent to 387 sales, thanks to fleet business according to company sales and marketing chief Warren Brown.

Honda continued its resurgence with a 42.9 per cent lift to 270 sales while Volkswagen rounded out the top ten in February with 246 sales (up 31.6 per cent) thanks to a pricing rethink and particularly strong commercial sales, including 39 orders for the new Amarok ute.

Suzuki’s new Swift was the top-selling model for February with 351 sales, followed by the Toyota HiLux (339) and Hyundai i30 (310).

New vehicle sales are up 12.7 per cent year to date, well ahead of initial industry predictions of five per cent for the year – though that prediction may change once the full impact of the earthquake is known.

NZ top 10 makes February 2011:
Make Sales Share %
Toyota 1261 19.7
Ford 596 9.3
Hyundai 583 9.1
Holden 499 7.8
Suzuki 473 7.4
Mazda 472 7.4
Nissan 423 6.6
Mitsubishi 387 6.0
Honda 270 4.2
Volkswagen 246 3.8

[vztrt]

SUVs close to becoming Australia’s favourite car

http://www.goauto.com.au/mellor/mell...25784C002527B0

Small cars almost toppled by SUVs as Australia’s top-selling vehicle type in 2010

7 March 2011

By HAITHAM RAZAGUI

AUSTRALIA’S love affair with the sports utility vehicle showed no sign of cooling off last year as SUV sales grew by 25 per cent – far faster than any other segment – and accounted for 22.7 per cent of the market, coming within 3906 units of toppling small cars as the nation’s most popular vehicle category.

The perpetually declining large car segment was overtaken for the first time by a 36.6 per cent boom in sales of compact SUVs last year, which leapt by almost 31,000 units to 114,761.

Similarly, the medium SUV segment grew in 2010 by over 11,000 units – or 16.1 per cent – to outstrip the popularity of medium-sized passenger cars, sales of which grew more slowly at 7.8 per cent year-on-year.

Year-to-date in 2011, compact SUVs are still 5895 sales ahead of large cars while medium SUVs lead medium-sized cars by 1058. But small cars are having a resurgence, with 38,826 units YTD against combined small SUV sales of 35,948.

In the space of five years, the gulf between sales of SUVs and those of small cars narrowed from 48,511 units to fewer than 4000 – with the gap narrowing sharply by 21,929 sales between 2009 and 2010 alone.

Last year, Toyota had a 1-2 finish in the medium SUV segment with its Prado (13,180 – up 27 per cent) and Kluger (13,117 – up 2.1 per cent) while taking a dominant 70.4 per cent slice of the large SUV category with 9050 sales of its 200 series LandCruiser, up 16.7 per cent in a segment that grew 11.3 per cent.

The Japanese giant also came a close second in the compact SUV arena, shifting 12,635 RAV4s to trail the Subaru Forester by just 47 units. RAV4 sales for the year grew 15.5 per cent against the Subaru’s 6.5 per cent.

Of course the SUV figures do not include dual-cab 4WD utes, which are often used as an SUV by private buyers. With those included, the off-road style of vehicle is by far Australia’s favourite.

The 4X4 ute market grew 9.5 per cent last year, to 85,813 units. So far this year, the segment is up 10.7 per cent, while 4x2 utes are down 11.9 per cent, continuing 2010’s downward trend that saw the category shrink by 12.4 per cent.

Despite poor comparisons with passenger cars in terms of fuel economy, ride, handling and performance, plus derision from some members of the public, the popularity of SUVs is due in no small part to practical considerations.

Even where any real or suggested off-road ability is irrelevant, SUVs offer the perception – but not necessarily the reality – of higher occupant safety, an elevated view of the road ahead and greater immunity to potholes, kerbs, speed bumps and steep road cambers or ramp inclines that can graunch the undersides of low-slung cars.

BMW Group Australia head of corporate communications Piers Scott told GoAuto: “Customers like the space, comfort and commanding ride height. The popularity of our two-wheel drive X1 shows that it is the vehicle proportions over the four-wheel driving capability that matters to most customers.”

In Australia, with a road network designed for carrying large cars, the size of SUVs rarely poses a problem on the road and their generous dimensions provide extra space for large families or people whose hobbies require them to carry bulky equipment, while often looking more stylish than equivalently-spacious people-movers or wagons.

SUVs also offer the flexibility of exploring Australia’s thousands of kilometres of unsealed roads that are intolerable in most conventional cars. In addition, the recent series of natural disasters makes a decent SUV feel like a safer bet as they are more suited to harsh environments – not to mention that many Aussies like to hitch up a trailer, boat, camper or float, a task for which a high towing capacity is preferable, if not essential.

Toyota Australia public relations manager Mike Breen agrees: “Interior space is important, flexible seating and cargo-carrying ability for surfboards, mountain bikes, family gear and so on, along with a vehicle that often has more style, street-cred and on-road presence than the alternatives. In many respects, they are the modern station wagon, but without the negative connotations of that phrase.

“SUVs also offer the possibility of travelling to places that cars cannot go – due to better ground clearance as well as the availability of four-wheel drive. In regional and rural areas, large SUVs are popular because of their size, comfort and relaxed motoring, especially when travelling large distances on rough roads.”

Asked why Toyota remains a dominant player in the SUV sector, Mr Breen said that, in addition to the brand’s reputation for quality and wide SUV range – that is about to expand further this month with the arrival of the FJ Cruiser – its extensive dealer network “provides reassurance for buyers, no matter where they live or travel”.

Not taking into account Land Rover’s all-SUV line-up, the luxury SUVs accounted for an average of 37.9 per cent of Australian sales for their manufacturers. Volvo’s XC range accounted for two-thirds of its volume last year and almost half of all Porsches sold in 2010 were Cayennes.

Nearly four in ten Lexus purchases were for an SUV, more than a third of BMWs wore an X badge and 27 per cent of Audi customers opted for a Q5 or Q7. Only Mercedes bucked the trend, with just 14 per cent of Benz buyers seeking an SUV.

Commenting on the disproportionate popularity of SUVs in the luxury sector, Mr Scott said that “overwhelming” customer feedback pointed to the fact that BMW’s luxury SUVs – a concept the brand claims to have invented with the X5 – “offer stylish practicality without any trade-off in terms of agility or performance”.

He also added that the successful BMW X1 is “luring customers from the non-premium brands who may not have otherwise considered a BMW” and that the Bavarian brand’s compact SUV “has proven extremely popular with customers who may have previously driven a BMW sedan or Touring and wanted a little more space or ride height”.

Recent advances in technology have significantly reduced the fuel consumption and CO2 emissions of SUVs, with luxury brands offering some of the most notable improvements.

For example, the latest Range Rover TDV8’s fuel consumption is down 18.5 per cent to 9.4L/100km while CO2 has dropped 14 per cent to 253g/km, Audi’s updated Q7 with the 3.0-litre TDI engine saw fuel consumption drop 19 per cent to 7.9L/100km (CO2 down from 239g/km to 205) and BMW’s latest X3 in xDrive20d spec sips 5.6L/100km while pumping out 147g/km – identical figures to the Aussie-built Holden Cruze diesel.

These improvements are all well and good, but when the technology is subsequently applied to passenger cars, the SUVs can’t hide their extra weight and bulk.

The new Audi A6 – due to arrive Down Under in July – with all-wheel drive and powered by a 3.0-litre V6 diesel similar to its Q7 stablemate, uses 6.0L/100km while emitting 158g/km of CO2, some 24 per cent and 23 per cent lower respectively than the SUV.

The Australian appetite for SUVs is worrying car companies who are facing the prospect of legislation bringing in mandatory CO2 targets, which could follow the European model and measure the average CO2 output of cars registered by each company over the course of a year, fining them for every gram they step over the target.

Mr Scott suggested that a scenario could develop in Australia where the car companies are penalised for the choices made by their customers because, despite a wide choice of low-emission vehicles on offer, this is offset by the fact that car buyers are increasingly opting for SUVs.