Myth Busted - Australia's Favourite Car

Timmeh · 13-09-2006, 11:43 AM

Myth busted: Australia’s favourite car

Richard Blackburn, The Sydney Morning Herald, 01/09/06

What Australians choose to drive is different to what they’re told to drive.

The Holden Commodore is Australia's favourite car, right? Well, it depends on how you define the word "favourite".

The Commodore is Australia's biggest-selling car but it is not No.1 with people who put their hands in their own pockets to pay for a car.

In fact, it's not even No.1 with private buyers of Holdens - the Korean-built Barina takes that title, followed by the Astra.

But the Commodore's lack of appeal to private buyers is nothing compared with Ford's Falcon. Last year it was the No. 2 selling vehicle in the country but it doesn't even rate in the top 15 favourites among private buyers. The Focus is Ford's top retail performer, followed by the Territory soft-roader.

According to figures obtained by Drive, the No.1 selling car among private customers this year is the Toyota Corolla (above left), followed closely by the Mazda3 (centre), with Toyota's Yaris (right) and the Echo model it replaced No.3. Commodore comes in at No.9. Imported vehicles fill the top eight spots on the private top-sellers list.

The figures are sure to create big headaches for Australia's four local manufacturers, which all make large cars.

Private consumers buy four times as many Corollas as they do locally built Falcons and four-cylinder Camrys. Private sales of Corolla are more than double those of Commodore.

Mitsubishi's 380 large sedan attracted just 956 private buyers in the first seven months of this year. Fleet sales make up 87 per cent of the 380's sales.

Honda's small Civic is the car with the highest percentage of private buyers. With just 10 per cent fleet sales, Honda is No.5 on the private sales charts, compared with No.14 overall.

The top choice among private four-wheel-drive buyers is Toyota's RAV4, which - once fleet sales are taken out - turns the tables on the segment's overall best-seller, the Ford Territory. Corporate customers account for about 60 per cent of Territory sales.

Car companies share private sales results between themselves but have an agreement not to release them to the public. Local manufacturers are not keen for the figures to be made public because they sell so many fleet vehicles and high fleet sales can affect public perceptions of a brand.

The figures reveal that 88 per cent of Falcon buyers are fleet customers, compared with 81 per cent for Commodore.

The Toyota Corolla, which is overall the country's second biggest seller, sells mainly (60 per cent) to private buyers.

Private sales are vital for car companies because they mean profitability and a healthy brand. Fleet sales, on the other hand, are often a necessary evil, providing volume for local production lines but generating wafer-thin margins and the stigma of common-ness.

Holden has acknowledged this and aims to lift private sales of its new Commodore to 60 per cent of the total - such a result would lift it to third on the hit parade for private buyers but recent trends suggest Holden will have a tough job attracting private buyers to a bigger and heavier Commodore.

Fleets have been gradually turning away from large cars but private buyers have been deserting them in droves - fewer than one in 10 private buyers opted for a large car in the first seven months of this year. In 2002, the figure was closer to one in five and private buyers bought more large cars than light or medium examples.

Car industry executives say a growing number of fleet sales are pseudo-private sales, with more people using a salary package to lease a vehicle for private use. But even these so-called "user-chooser" buyers are going cold on large cars. Large cars made up 53.6 per cent of fleet car sales in 2002, while this year the figure has slipped to 40.6 per cent.

All four local makers have built four-cylinder cars - perhaps it's time to dust off the plans. As the only manufacturer to build a four-cylinder car, the Camry, Toyota has a head start.

--------------------

Just saw the article and found it interesting, mostly about Fords best retail seller. I would have thought the Falcon or Territory would have still outsold it.

Still, you never know how they get the figures.

Timmeh

XRated · 13-09-2006, 11:58 AM

We need a locally built small hatch that is superior to the imported ones we get; hey, may as well give them the option of RWD or FWD/AWD. Interesting results nonetheless, and good to see an article with a slightly different perspective.

Twisted · 13-09-2006, 12:16 PM

Um yeah but Corolla's suck ;)
That said though they have nothing on Camry drivers!

Interesting read though, cheers mate.

merlin · 13-09-2006, 01:10 PM

Very interesting - thanks for that.

I agree - if Ford want to get private sales up they need a locally built hatch or mid-sizer to compete with Corolla and Camry. Imported Focus costs too much.

uranium_death · 13-09-2006, 01:23 PM

This topic has already been posted.

But once again, 75% of cars sold in Australia are imported which is due to the fact that no small cars are manufactured in Australia. Australia MUST respond.

Bud Bud · 13-09-2006, 01:49 PM

A bit of a sensationalist headline really. It is no accident that they are all 4 cyl cars and that most all of these sales were generated around the same time that fuel was averaging over $1.30 a litre. Even the fact the little 4 cyl Rav 4 led the charge for sales in the 4WD brigade shows that everybody is thinking small to small-medium 4 cyl cars are the way to go for now.

I doubt that people would still be thinking this way if petrol dipped below $1 a litre over the next year or so or if fuel remained at no more than $1.25 a litre over the next 5-7 years. (OPEC has been over producing since 2003 and are on a daily basis monitoring the decision to cut production in the near future to help arrest the slide of the value of crude falling too far)

In the main most people do not like small cars (why else do 55 kg women love to drive large 4wds to pick up the kids from school or to do the weekly shopping at Coles etc? Note: never park next to one of these if you do not like little dents along the side of your car), and only usually resort to small cars in mass numbers during an economic down turn or fuel price shocks etc.

The upside is you can usually achieve exceptionally good bargains in the large car sector during these times too!

merlin · 13-09-2006, 01:58 PM

Quote:

Originally Posted by Bud Bud

A bit of a sensationalist headline really. It is no accident that they are all 4 cyl cars and that most all of these sales were generated around the same time that fuel was averaging over $1.30 a litre. Even the fact the little 4 cyl Rav 4 led the charge for sales in the 4WD brigade shows that everybody is thinking small to small-medium 4 cyl cars are the way to go for now.

!

Fuel is only ever going to go up - the slight dip now is just that - a dip.

13-09-2006, 02:11 PM

Quote:

Originally Posted by merlin

Very interesting - thanks for that.

I agree - if Ford want to get private sales up they need a locally built hatch or mid-sizer to compete with Corolla and Camry. Imported Focus costs too much.

I'd like to see a locally built RWD or AWD sedan, hatch and wagon with the choice of the duratec 2.3 (as found on the Mazda3 SP23), Duratorq tcdi 4cyl and the Barra 190 I6 on the sports model. A mix of the WRX, BMW 1 series and the Holden Torana concept. Have this exported to the world (and save Ford US)

Hmmm perhaps Mitsubishi should have ditched the 380 concept and started making Lancers locally.

Iphido · 13-09-2006, 02:44 PM

The problem for ford are there are entire cars that no private buyer ever buyes. Fairlane and LTD, Fairmont Ghia, Fairmont.

The territory is a saving grace. Lots of private sales, 30% of all sales are the Ghia. Obivously Fords really tapped into a nice niche there not just as a fleet vechical, but as something people really want to own personally.

Fleet sales (espically national fleet) don't actually make a great deal of money, they increase volume tho. Australian manufacturers are obviously going to have more fleet sales than importers. The key is to use fleet sales to enhance sales not just increase volume.

There is no point in making a small car in Australia, somebody will just undercut you and the Australian car will always lose. There is very little loyalty in the small car market, you can be number one, then nothing the next. Even toyota struggles in the Echo/Yaris size, its only the larger corrolla (near mid sizer) that people seem commited too.

Also most males usually are the ones with fleet cars, while females generally work in positions that don't get fleet cars.

If Ford and Holden want to attract private buyers they have to address several things (and not just hire more female designers, any talented designers can address these).

-Loading. Sedans are generally a pain to unload shopping/gear compared to 4wd and hatches.
-Entry. Sedan doors should open wider, AU-BA is a classic example where entry into a sedan is not easy.
-Not funky enough. The regular falcons are pretty boring. Not any exciting colours on cars other than the XR's. Most of the lines and shapes are plain.
-Economy. While guys might go "cool lots of power and a V8" women tend to the money side of things (many households the women control the money strings).
-General bigness. They are long and often awkward to park. They generally don't provide commanding views.

I tried desperately to get my girl friend into a falcon. Would have a bar of it. Regardless of price and arguments.

She would have concidered it if they were avalible in exciting colours and looked a bit funkier. Interiors were very boring too. Perhaps some NCO and encouraging large fleets to mix up exterior colours and interior colours would help.

But there are bargins.. Getting a recent model Fairmont Ghia for under $20k is fantastic buying.

Bud Bud · 13-09-2006, 02:55 PM

Quote:

Originally Posted by merlin

Fuel is only ever going to go up - the slight dip now is just that - a dip.

Merlin, realistically you are right, however we have seen this cycle before and when you look to the past you can see what happens when the world and particularly Australia is forced to use less fuel, Ford Aus deletes the V8 out of its range, Holden go with a mid sized car (which includes a 4 cyl) as its family car, Chrysler (Mitsubishi) Aus drops the Valiant in favour for the 4 cyl Sigma and for a short time smaller 4 cyl cars reined supreme.

By the mid 80,s there was an oil glut and

Ford Aus reintroduces the V8 back into its range, and then scrambles to reengineer another V8 to replace the Windsor, Holden come back into the market with a full sized family car (VN) and launches another two new platforms after that and the Sigma grew to become the Magna, which began to include 6 cyl engines for the first time. Later the 380 comes with even a bigger 6 cyl engine.

I know that it looks bleak now but I can see this as just another cycle, at least for the moment. That is at least unless they officially announce "world peak oil production" has been surpassed!

xbgs351 · 13-09-2006, 02:58 PM

That article is missing the point. The Commodore and Falcon are extremely popular to the general public as near new second hand cars. If they were not, the fleets would not buy them as they would be unable to sell them for an adequate price to justify their purchase.

In addition the choice of a car that a fleet purchases often comes down to what sort of car the employee wants. Due to fringe benefits tax, the employee usually ends up putting their hands into their pockets to pay for at least some of the cars purchase and running cost.

Holden Man · 13-09-2006, 04:47 PM

If car companies were serious about increasing private sales then why dont they offer Interest Free terms like Harvey Norman.
I can go out and buy $40k worth of furniture on No deposit No Interest for 40 months but If I want to buy a new $40k car I going to have to bend over and cop about $10 k in interest.

Would kill the used car market though i spose?

13-09-2006, 04:57 PM

Quote:

Originally Posted by Holden Man

If car companies were serious about increasing private sales then why dont they offer Interest Free terms like Harvey Norman.
I can go out and buy $40k worth of furniture on No deposit No Interest for 40 months but If I want to buy a new $40k car I going to have to bend over and cop about $10 k in interest.

Would kill the used car market though i spose?

Then they would increase the RRP for the car to 50k. If you shop around you'll see that Hardley Normals have a MASSIVE markup on their goods. If you pay in cash that day and ask for a discount, they'll almost certainly give you 10% off.

XRchic · 13-09-2006, 06:10 PM

I work in a position where I could get a fleet car, but I bought my own. I will always drive a Falcon or one of its derivatives (XR or FPV) and I dont care how expensive petrol is (within reason), I will never buy a small car for myself. We are considering it a small car as a cheap family run around, but it will be replaced by a new Falcon (probably a Typhoon) down the track.

Colour does not influence my choice of car at ALL. Interior does, but compare a B series XR interior to the Corolla interior..... I cant see why anyone would think a small car interior would be better than a bigger car and most Falcons have pretty decent interiors. I like my XR interior.

The main reasons why I like Falcons is because a) I grew up with big Fords and love them, b) I love the power and torque over a small car c) we do a fair bit of long driving on holidays and you cant beat a big Falcon for that d) I like to drag race and I wouldnt race anything with FWD e) I have 2 kids and a baby and small cars are just not that practical for them and their stuff and f) I dont like looking like the typical chic in the hairdresser car.

There are probably more girls out there like me than we realise.

SirHenry · 13-09-2006, 06:15 PM

Can't say the stats surprise me that much to be honest with the way fuel prices are and stuff. What I would like to see from Ford is an all new Oz built performance four cylinder.... bring back the Cortie...

bigjim · 13-09-2006, 06:18 PM

I think it's relevant to point out that its not just a fuel consumption or power issue. For people who live in the inner city and rarely if ever venture to the country, small cars make life a lot easier in terms of manuevering in traffic and carparks, as well as the cost saving. I wouldn't swap my XR for a corolla, but I can see why some people would.

**Bluehoon** · 13-09-2006, 06:57 PM

That is very biased and those figured have being construed....

Good old reliable medialistic garbage...

:

Steffo · 13-09-2006, 07:44 PM

I thought this was old news....

If you remove fleet sales from Ford, Holden, Mitsubishi and Toyota they would all go under.

coyote · 13-09-2006, 09:30 PM

Another fact that the stats do not show is the amount of "fleet Sales" that are basicaly private purchaces.

Anyone with a small business is going to buy their cars through the business , but that does not mean they are actualy used for business. But the figures will still show a Fleet Sale.

All those on Novated leases, or those who take salary sacrafices and buy their family / second car that way would also be counted as Fleet sales.

Statistics / Lies not much difference at the end of the day, all depends on the result you want to show.

In this case a great headline and beating up on Aussi business in the one swoop. Bet they had a good laugh at this one.

Timmeh · 13-09-2006, 10:10 PM

Quote:

Originally Posted by coyote

Another fact that the stats do not show is the amount of "fleet Sales" that are basicaly private purchaces.

Anyone with a small business is going to buy their cars through the business , but that does not mean they are actualy used for business. But the figures will still show a Fleet Sale.

All those on Novated leases, or those who take salary sacrafices and buy their family / second car that way would also be counted as Fleet sales.
.

Actually, they do talk about it:

"Car industry executives say a growing number of fleet sales are pseudo-private sales, with more people using a salary package to lease a vehicle for private use. But even these so-called "user-chooser" buyers are going cold on large cars. Large cars made up 53.6 per cent of fleet car sales in 2002, while this year the figure has slipped to 40.6 per cent."

But I agree with what you're saying. The article was only ever there as an alternative look to the normal figures we see. My Falcon XR6 was a leased car.

Timmeh

RSgerry · 13-09-2006, 11:07 PM

It is also worth remembering that a large number of people dont get a say in what car they get. Some companies will order a range of quotes on a class of car (small, medium, large) and bulk buy the best deal. You will also find companies moving away from Falcon / Commodore class cars for staff who only do city driving. There is no point in spending more than you have to on a car that is underused. I worked in a fleet manager role for a short time and the Falcons were for country based staff, and we looked at Pulsars etc for city staff. The bottom line is what matters, not relative comfort, because at the end of the day, a Pulsar gets about town just as well as a Falcon, but considerably cheaper.

new2ford · 14-09-2006, 11:49 AM

Quote:

Originally Posted by uranium_death

This topic has already been posted.

But once again, 75% of cars sold in Australia are imported which is due to the fact that no small cars are manufactured in Australia. Australia MUST respond.

There won't be a small car manufactured here again because the margins aren't there. The Korean cars have made sure of that. Someone from Holden once said to me that they couldn't keep going with the Opel (European) Barina because they couldn't get it supplied cheaply enough from Opel to compete on the Australian market. This is what's behind their change to Korean-sourced cars. I wonder how long Ford will be able to keep taking cars from Europe?

Edit. See also: http://www.drive.com.au/Editorial/Ar...ID=19986&vf=12

14-09-2006, 12:02 PM

Quote:

Originally Posted by new2ford

There won't be a small car manufactured here again because the margins aren't there. The Korean cars have made sure of that. Someone from Holden once said to me that they couldn't keep going with the Opel (European) Barina because they couldn't get it supplied cheaply enough from Opel to compete on the Australian market. This is what's behind their change to Korean-sourced cars. I wonder how long Ford will be able to keep taking cars from Europe?

Only car being taken from Europe is the Fiesta, XR5T (which could have been sold at least $4-5000 more than RRP) and Transit.

Focus from S. Africa, Courier from Mazda (from Thailand or South Africa according to drive.com.au), Escape from Taiwan (according to drive.com.au), F-series from Brazil.

As opposed to Holden
Astra - Belgium
Combo - Portugal
Tigra - Belgium
Vectra - Germany

Steffo · 14-09-2006, 12:29 PM

Quote:

Originally Posted by BlackLS

As opposed to Holden
Astra - Belgium
Combo - Portugal
Tigra - Belgium
Vectra - Germany

Astra is going to eventually make way for Viva, likewise Vectra for their other Korean POS.

Fordoldie · 14-09-2006, 01:22 PM

Quote:

Originally Posted by Steffo

Astra is going to eventually make way for Viva, likewise Vectra for their other Korean POS.

Astra is not making way for anything - they have more models being released including the just launched Diesel.
I agree on some of the korean crap stuff ie cheap etc however they are one of the fastest growing industries globally. Everyone laughed when Hyundai first appeared downunder with cheap old mitsi engines.
The swiss laughed when a Jap Company bought the patent to a new "digital" watch (invented by swiss watchmakers in the first place but not wanted) and later became known as "Seiko".
From reports so far - about the new "Korean crap" Epica which replaces the slow selling and over priced Vectra - are very positive and it is supposed to put the sh*ts up Camry.
I am intrigued when people comment on things they havent seen or dont know. I will reserve my comment untill I have seen one as our company has been waiting for the Vectra replacement some time now.

Bud Bud · 14-09-2006, 02:48 PM

Quote:

Originally Posted by Fordoldie

Astra is not making way for anything - they have more models being released including the just launched Diesel.
I agree on some of the korean crap stuff ie cheap etc however they are one of the fastest growing industries globally. Everyone laughed when Hyundai first appeared downunder with cheap old mitsi engines.
The swiss laughed when a Jap Company bought the patent to a new "digital" watch (invented by swiss watchmakers in the first place but not wanted) and later became known as "Seiko".
From reports so far - about the new "Korean crap" Epica which replaces the slow selling and over priced Vectra - are very positive and it is supposed to put the sh*ts up Camry.
I am intrigued when people comment on things they havent seen or dont know. I will reserve my comment untill I have seen one as our company has been waiting for the Vectra replacement some time now.

This is so true! There was a time when nobody took the Japs seriously concerning car manufacturing as well. Everybody knows or can remember a time when their (the Japs) cars were referred to as "Jap crap".

This was most prevalent in the early 60's and while it was true of their cars (and many other goods as well) at that time, this ignorance was also formed because it was still too close to the sentiment of the people (America included) who lived as children or fought as men against the Japs through the second world war.

The Japanese car companies took all this on board as constructive criticism however and began to incrementally and constantly improve and refine their products in a culture they refer to as "KAISEN" (constant and continued improvements). KAISEN is practiced along with having respect for others.

Today Toyota is pushing to topple Ford as the number two world auto giant, with their sights firmly set on GM.

Who is laughing now?

As a foot note, I saw something on cable 6 or 7 years ago that claimed that, in the 1950’s, there were nearly 200 TV manufactures operating in America. In Japan there were only 11 at that same time. Today there was just 1 TV manufacture left in America, while all 11 still remained operating in Japan. If this is true, kind of makes you think then doesn’t it?

LeadFoot81 · 14-09-2006, 06:05 PM

i hope you guys are proud about bagging each other re: asian cars, but not proud that it looks like Toyota etc are going to consume the car companies we love (either rightly or wrongly) Falcon and Commodores have their problems but I dont want 1000s of aussie employees to lose their jobs making these sometimes dodgy, yet loveable cars. Or maybe they arent that good and i should get a corolla? nah stuff that.

Fordoldie · 14-09-2006, 06:12 PM

Quote:

Originally Posted by Inline6

i hope you guys are proud about bagging each other re: asian cars, but not proud that it looks like Toyota etc are going to consume the car companies we love (either rightly or wrongly) Falcon and Commodores have their problems but I dont want 1000s of aussie employees to lose their jobs making these sometimes dodgy, yet loveable cars. Or maybe they arent that good and i should get a corolla? nah stuff that.

Exactly right! If Holden have produced a global car that sells well both here and around the globe maybe Ford will follow suit with their Aussie production and perhaps even Aussie (the country Jeremy Clarkson stated never invented anything better than the rotary clothesline) can become a global leader in Auto manufacturing!

EB 2 XR8 · 14-09-2006, 06:16 PM

i was lazy and didn't read? some one give overview?

Homer1 · 14-09-2006, 09:05 PM

Quote:

Originally Posted by Bud Bud

Today Toyota is pushing to topple Ford as the number two world auto giant, with their sights firmly set on GM.

If I'm not mistaken, they already have toppled Ford for no. 2. :(