HOLDEN Sales Fall Because of SIDI..

[csv8]

Taking the fuel-efficient route has seen rivals catch up to the Commodore but the future looks bright thanks to the US.

Holden's decision to fit a smaller, more efficient engine to its Commodore range appears to have backfired, with sales slipping since the introduction of a new model in late September.

In its first three full months on sale, the Commodore recorded less than 12,000 sales, compared with more than 13,500 in the same period last year.

The 13 per cent dip in sales is in contrast to the rest of the new-car market, which bounced back strongly in the last quarter (up 12 per cent on last year) on the back of tax breaks delivered through the Federal Government's economic stimulus package.

Typically, the arrival of a new model causes a spike in sales but the model year 2010 Commodore, the first major update since the 2006 launch of the VE, has struggled to find its feet.

At the same time, the arch-rival Ford Falcon has enjoyed a 7 per cent lift in sales.

The dip comes despite deep discounts on the new Commodore. Holden has been running a drive-away promotion on the car, with a discount of about $8000 off the on-road price combined with $7500 worth of extra equipment.

The Commodore, the top-selling car in Australia for the past 14 years, has also lost ground to the Toyota Corolla small car and the HiLux in recent months. The Corolla was the nation's top seller in October, while the HiLux was No.1 in November.

Toyota's vehicles have toppled the Commodore from the top spot for five of the past seven months.

Holden switched to a 3.0-litre engine on its cheaper Commodore models in an attempt to steal the high ground on fuel efficiency over the rival Falcon and the Toyota Aurion.

But in real-world testing conducted by Drive, the smaller engine has proved thirstier than the Falcon fitted with an optional six-speed auto.

Holden managing director Alan Batey admitted this week that the new model had exprienced a slow start.

"Two things really hurt us," he said. "We didn't have the International [special edition] until the middle of November so we had a gap of what we call our retail offer for about six or seven weeks so we didn't capitalise on that.

"And secondly, in the end, we didn't have enough cars out there. We have been very cautious in making sure that every car we build has a customer name, a customer sold or a dealer name on it. So we were probably overly cautious."

He said the company had underestimated the strength of the recovery in the Australian car market in the last quarter of 2009, and had run short of stock.

But as a result the forward-order bank was "fantastic".

He rejected the suggestion that the shift to a more frugal V6 engine had turned traditional Commodore buyers away.

Commodore has always traded heavily on its motorsport and performance image but the new model fitted with the direct injection (SIDI) 3.0-litre engine is significantly slower than its Falcon and Toyota Aurion rivals.

"Look, SIDI to me, you have to be realistic. We are at record high segment shares on large cars anyway," Mr Batey said.

"The real appeal for SIDI is clearly going to be in fleet and that takes time to see the benefits of that commercial program. You don't just launch and, bang, you are back on every choice list.

"And also with fleet buyers, they have been pretty cautious in their purchases."

Fleet buyers make up about 75 per cent of all Commodore sales.

Commodore fleet sales are, however, expected to come under renewed pressure when Toyota launches a hybrid version of the four-cylinder Camry next month.

Toyota says fleet interest in the locally built hybrid Camry, which is likely to undercut the Commodore on price, has been so strong that the company will struggle to meet demand.

The hybrid Camry is expected to be at least 20 per cent more fuel-efficient than the Commodore.

Commodore's domestic woes are in sharp contrast to its rising fortunes on the international stage. A special police version of the car is expected to be exported in significant numbers to the US, while GM heavyweights are flagging the possibility of a major export program that would see performance versions of the Aussie icon sold with Chevrolet badges.

With Bruce Newton

Source: The Sydney Morning Herald

[SVTVNM]

Can they find anymore excuses! :

[G6E Turbo 2]

Originally Posted by SVTVNM

Can they find anymore excuses! :

Yep, lots more excuses yet to come
Just ask any of your Holden mates, they
will all have one for you !!!!!!! LOL

[Jason[98.EL]]

Originally Posted by SVTVNM

Can they find anymore excuses! :

was thinking the same thing

[Silver Ghia]

I'm sure the Falcon would be outselling the Commodore easily if there were FG wagon versions through the model range like in the Commodore range.

Certainly a lot of advantages with the FG compared to the VE.

[Spitfire 6.2]

Maybe how stupid the ads and badges on the car are have brought sales down a bit too.
Who wants to buy something with "SIDI direct injection" plastered all over it.
The singe dumbest product branding ive ever heard of.

[jpd80]

Fleet buyers make up about 75 per cent of all Commodore sales.

Gee, that must do wonders for your bottom line....

On the SIDI thing, the worst thing you can do as a manufacturer is disappoint your buyers,
getting great fuel economy is possible with the 3.0 but it comes at a hell of a fun factor drain.....

No thanks, for the similar money, people can buy a beautiful XR6 - how could you ignore that......

[kezzer]

Originally Posted by jpd80

No thanks, for the similar money, people can buy a beautiful XR6 - how could you ignore that......

Or the 3.6l SIDI :

[4Vman]

"fleet sales make up about 75% of commodore sales"


Is this true???? if it is that's amazing.....

[4Vman]

Originally Posted by GT-Cobra

Maybe how stupid the ads and badges on the car are have brought sales down a bit too.
Who wants to buy something with "SIDI direct injection" plastered all over it.
The singe dumbest product branding ive ever heard of.

No.. that would be AFM.....

[US kills Falcon]

Originally Posted by Silver Ghia

I'm sure the Falcon would be outselling the Commodore easily if there were FG wagon versions through the model range like in the Commodore range.

Correct.

[SVTVNM]

Not to go too off topic but so many of us, me included put Fords Marketing and Ford in general down for not pushing there product up until recently when they pulled their finger out (so to speak), but I can't help but think that they had an idea Holden was going to fall flat on their face with this new SIDI Engine tech, I'm prety sure there are people within auto companies that probably have a specific job to sus out what the others are doingAnd they could see things may begin to slide to their favour. Lets hope it continues!!

[mrbaxr6t]

finally we see sales reflect how crappy the commodores actually are when compared to their competitors selling cars on the fluffy v8 aura is wearing off...

and in the real world consumers that want fuel efficiency have seen through the sidi con job that they tried to pull on buyers

[4Vman]

Im still staggered by the fleet sale component.... surely they must be including leased vehicles in the "fleet" category....

[jpd80]

Thank you Holden,
You have just proved that Ford was right to keep the 4.0 I-6 instead of
following your lead and importing 3.0 and 3.7 V6 Duratecs from the USA.

[Auslandau]

Originally Posted by 4Vman

Im still staggered by the fleet sale component.... surely they must be including leased vehicles in the "fleet" category....

If thats a true figure .... puts a different light on things. Profit for one, and how many people who have one actually wanted one! Would like to know Hilux and Falcon figures as a comparison on fleet vs private, Omega to Calais & XT to G series etc. Might also tell another story about who is doing 'better'!



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[tezxr8man]

I'm all for bagging out commodores and such but would you really buy a camry, carolla or hilux? they are all crap overrated washing machines with wheels, it pains me to say it but if there were no fords i'd buy a commodore over an oversized rice paddy any day. why the hell are people buyin them over real cars anyway???

[Auslandau]

Originally Posted by tezxr8man

I'm all for bagging out commodores and such but would you really buy a camry, carolla or hilux? they are all crap overrated washing machines with wheels, it pains me to say it but if there were no fords i'd buy a commodore over an oversized rice paddy any day. why the hell are people buyin them over real cars anyway???

Because they are washing machines and do there intended job. The perception is that they are bullet proof. I would take a stab and say that 80% minimum wouldn't care what they drive ... as long as they can get in it, turn the key and arrive.



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[uranium_death]

Originally Posted by auslandau

Would like to know Hilux and Falcon figures as a comparison on fleet vs private, Omega to Calais & XT to G series etc. Might also tell another story about who is doing 'better'!

I get the impression that the Omega is the Commodore's most popular model, while the XT is hardly the Falcon's most popular...I see a hell of a lot more XRs and G-Series...

It's good. People spending more money...which needless to say, is exactly what you were implying

[uranium_death]

Originally Posted by GT-Cobra

Maybe how stupid the ads and badges on the car are have brought sales down a bit too.
Who wants to buy something with "SIDI direct injection" plastered all over it.
The singe dumbest product branding ive ever heard of.

On the way to work today I saw two Statesmen on the road of a similar appearance.

One of these Statesmen had an AFM/SIDI/whatever badge, the other one didn't.

There is no way to sugarcoat it...the Statesman with the AFM/SIDI badge looked crappo.

[Paxton]

I can't believe that Holden are blaming the poor response to the SIDI on their lack of a 'Special Edition'. Ford have never had as many Special Editions as Holden did this year, and don't blame a new model failing because of the lack of one.

SIDI isn't selling because it has entered the market partly derided by the Media, but mostly because it has remained unchanged since the VE was released in 2006. Ford learned the hard way with BF/BFII that leaving the basic look of your car unchanged for too many years, and it will be ignored by the buying public, and most possibly never recover from the sales slump. VF can't come fast enough for Holden, and probably should have come with the SIDI upgrade. They have missed a great opportunity with releasing VF.

[Falc'man]

Originally Posted by auslandau

If thats a true figure .... puts a different light on things. Profit for one, and how many people who have one actually wanted one! Would like to know Hilux and Falcon figures as a comparison on fleet vs private, Omega to Calais & XT to G series etc. Might also tell another story about who is doing 'better'!

They're excellent points.

lol at the excuses... I wonder if anything like the following was actually closer to what happened.


Look...

Listen...

Uhm...

Don't laugh, why are you laughing?

The 3 litre SIDI is... don't laugh when I'm talking!

Okay, we didn't pick the market was going to surge, we thought it would slowly ramp up it's intake, just like SIDI does when you put your foot down in a high gear... it sucks more fuel anyway, I mean, no, no. Don't record that. I didn't say that.

Can we start again?

[jpd80]

Originally Posted by Paxton

I can't believe that Holden are blaming the poor response to the SIDI on their lack of a 'Special Edition'. Ford have never had as many Special Editions as Holden did this year, and don't blame a new model failing because of the lack of one.

SIDI isn't selling because it has entered the market partly derided by the Media, but mostly because it has remained unchanged since the VE was released in 2006. Ford learned the hard way with BF/BFII that leaving the basic look of your car unchanged for too many years, and it will be ignored by the buying public, and most possibly never recover from the sales slump. VF can't come fast enough for Holden, and probably should have come with the SIDI upgrade. They have missed a great opportunity with releasing VF.

Maybe VF will cop the "it looks too much like the old model" press chorus....

Actually, Holden lives on their special editions, it's engrained in Holden buyer's DNA.
Look at their Ute sales, whenever the sales stop, the buyers desert in droves.....

[phillyc]

Well, it will be interesting to see what January 2010 sales are like. Many are predicting not just the usual January hangover, but the sales being brought forward by the now ended 50% investment allowance.

Marin Burela says Q1/2010 will be flat before picking up. Well, Q1/2009 was horrible.

I think any more than 2000 Falcons sold will be a solid result. Which is up on last year. Falcon is also reputedly having it's highest private sales percentage in decades as it had for too long relied on fleets.

Just as interesting, is VE sales in January 2010. IF those VE 75% fleet sales are true. It may get hammered and end up 3000 or much lower.

Yes, it is proving that good advertising by Ford (that Bathurst economy run was a great suckerpunch on GMH) and a superior product have shown a solid incentive for Ford to continue improving the breed. Profitability and market share.

Q4/2009 Falcon sales up 7%, Commodore down 13%.
Calender 2009 Falcon private sales up, Commodore down.

My wish for 2010 with the Falcon is that it sells somewhere between 35-40,000 and captures 40% of the market. January will be a litmus.

PS I know one of my work colleagues who bought for himself a new FG XR6 and picks it up from the dealer tomorrow.

[Auslandau]

Originally Posted by uranium_death

It's good. People spending more money...which needless to say, is exactly what you were implying

Exactly Ford would not care 2 hoots if no one bought an XT .... ever! As long as the sales of G series, XR or any value added product is taking its place. They are the money banks, as is the Calais and sports models are to H'den.

Ford would love to be number 1 .... or even 2 but not to the detriment of profit. They do not want to buy market share ..... and the re introduction of the G series while was scary at the time has turned out to be brilliant. Even by dropping the Fairlane, as painful as it was, has taken the 'old man' feel away from the entire range.

Holden will be absolutely beside themselves with this situation ...... market share and media hero status seems to be their priority's today.

Cannot believe the VE was launched in 2006??? No wonder they are looking dated .... even compared to a BF.



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[jpd80]

ooos double post

[jpd80]

Just looked at December's sales, Mondeo: 315

Maybe Burela is getting an education on why a wagon replacement needs to be Falcon based......

[SM1DY]

A good push on there LPG dual-fuel models could be a way of injecting some life into their sales. I mean the figures of Omega and Berlina are pritty decent, with a car thats about 100kg heavier, returning figures of 16.0L p/100km is a happy number for an LPG model.

[Spanrz]

I loved how he borked the SIDI questions of real fuel economy in the real world.
Only to reply with "sales figures are pretty good".

Which tells me quite clearly, that they don't have an answer to real figures in the real world.
Except to be really lightfooted.

You can't design a smaller engine expecting it to use less fuel with the same type of weight.

[jpd80]

Originally Posted by Spanrz

I loved how he borked the SIDI questions of real fuel economy in the real world.
Only to reply with "sales figures are pretty good".

Which tells me quite clearly, that they don't have an answer to real figures in the real world.
Except to be really lightfooted.

You can't design a smaller engine expecting it to use less fuel with the same type of weight.

The worst thing you can do is disappoint your customers.
SIDI 3.6 should have been the base engine and developing a supercharged V6 high on the proirity list.