Politicians, car-makers feel the heat as governments scale back on local cars

[ClevlndStemer]

Stolen from another Forum.

AUSTRALIAN governments are buying half the number of locally manufactured vehicles that they did 10 years ago.

Following Ford Australia president Tom Gorman’s warning last week that stocking government fleets with imported vehicles could put local car-makers out of business, GoAuto has obtained evidence that underscores these concerns and shows a stunning slump in government purchases over the past decade.

According to the Federal Chamber of Automotive Industries’ VFACTS statisticians, Australian governments – federal, state and local – purchased 67,440 Australian-made passenger vehicles in 1996 … but bought just 33,786 in 2006.

This sharp drop in government purchases of locally-built vehicles has come during a decade of unprecedented growth that has seen new-car sales in Australia rise from 650,049 to 962,666.

While they have ordered fewer Australian-made cars, government purchases of imported vehicles has risen from 3398 in 1996 to 14,186 in 2006.

Australian-built large cars have been hit hardest by the sales shift, with government purchases dropping from 53,908 in 1996 to 28,592 in 2006. Most of that reduction has occurred in the past five years, with governments purchasing 21,949 fewer locally-made large cars in 2006 than they did in 2001.

At the announcement of the Ford Fairlane’s discontinuation last week, Mr Gorman spoke of his concerns for the Australian car industry’s future following federal Labor leader Kevin Rudd’s support for a move to redirect government vehicle purchasing to petrol-electric hybrid cars.

“It (the effect) would be enormous and it would be negative,” Mr Gorman said. “If you don’t shop locally, the stores go away.”

Mr Rudd told ABC Radio last month that he supported Melbourne City Council’s move to replace petrol-powered vehicles with hybrids.

“I think that’s a very good way to go and that’s what we’d do with the entire car fleet,” Mr Rudd told Melbourne presenter John Faine.

No Australian manufacturers produce hybrid cars, and are still years away from doing so.

A Labor spokesman subsequently claimed Mr Rudd did not mean he would replace Australian cars with imported hybrids, but wanted Australian manufacturers to build hybrid vehicles under his proposed Green Car Innovation Fund.

Government fleets are still largely made up of locally-produced vehicles, although some ministers have begun purchasing smaller imported cars such as the Toyota Prius hybrid.

Mr Gorman, who stressed he had not heard the original Rudd interview that triggered the furore, said local manufacturers could go out of business if governments switched to imported vehicles.

Left: Toyota Prius and Ford Territory (below).

“If you choose to buy a certain level of product, no matter what the product is, and it doesn’t come from your local manufacturers, and it substitutes for what your local manufacturers are building, the local manufacturers will either find another alternative or they will have to go out of business,” Mr Gorman said. “It’s that simple.

“Just think about it yourselves. If you don’t go to the local milk bar, because you are going to some shopping mall, then eventually the milk bar goes away.

“Now maybe that’s the best thing for the community, I don’t know, but I will tell you that the role that automotive manufacturing plays in this country is big and it is positive.”

While Mr Rudd was criticised for his comment about planning to stock government fleets with hybrid models, it was his admission that his government-supplied vehicle was a petrol-powered Ford Territory that saw him attacked in the mainstream media for driving a “gas-guzzler” while calling for action to counter climate change.

Mr Gorman said the description of the Territory as a “gas-guzzler” was inaccurate.

“You have to put the facts out there. It is not as fuel efficient as a Fiesta, that’s a fact, but to say that it is gas-guzzling and irresponsible, I don’t think that is accurate,” he said.

“The vehicle provides flexibility, it provides (for) lifestyle, it provides carrying, a safety package, it provides a whole raft of things that consumers choose to buy. I think those who want to point to the government and say that you are irresponsible for doing this, frankly I think that’s irresponsible, because, I agree, the facts don’t get represented properly.”

Mr Gorman said Ford Australia was living up to its responsibility to work on ways to improve the fuel efficiency of all its locally-made vehicles.

“Within its segment we make very, very competitive vehicles, we are continuing to work on fuel improvements, we are continuing to work on reducing our CO2, we are continuing to work on new technologies and you will see a raft of new technologies in the coming years that are going to reduce the environmental impact of our products,” Mr Gorman said.

“We take this up with the government publicly and privately as the government is a strong customer for us.

“We do two things: one, we do the best we can to publicly point out what the facts are, and then privately we continue to work obviously with our customers to make sure they are aware of the facts and are making the right choice.”

Australian sales of locally-made models have taken a battering since 1996.

VFACTS figures show 74,556 fewer locally-made vehicles were sold in Australia in 2006 compared to 1996. Almost half of that reduction can be attributed to the cut in government purchasing of Australian vehicles, which dropped by 33,654.

Some reduction in government purchasing is to be expected given that some models that were produced here in 1996 are now fully imported. Government purchases of locally-made small cars, including the Toyota Corolla, stood at 6420 in 1996, but fell to zero by 2001 when supply was switched to Japan and South Africa.

Not all Australian-made models are suffering. Governments purchased 4230 locally-made light commercial vehicles in 1996, including the Ford Falcon and Holden Commodore utes, in 1996 and that figure increased to 5078 in 2006.

Government sales of locally-made SUVs have also risen from 150 in 1996 to 2244 in 2006 thanks to the introduction of the Ford Territory and Holden Adventra.

GoAuto

[Polyal]

Admittedly I didn't read all of that, but personally, its a disgrace that the gov's fleet isn't 100% local.

French gov has Citroen's, US afaik use yank cars, I bet the Japanese use thier local stuff (although alot of the other Asians gov's use BMW/Mercs).

Pretty disappointing really.

[TUF_302]

Typical, our gov screwing us anyway they can! :

[Bossxr8]

Makes you feel proud to be an Australian when your own government sells out its own products and people.

[AussieJason]

It's a real shame Government Departments don't buy more Aussie cars. I was just thinking about this the other day when I was driving behind a Toyota with Government number plates.

It should almost be made mandatory, but I guess that would cause other problems (such as build quality and features may decease as Aussie car makers would have "guaranteed" sales each year regardless).

It would help keep a lot of Australian jobs going though, directly and indirectly.

[Polyal]

Originally Posted by AussieJason

It's a real shame Government Departments don't buy more Aussie cars. I was just thinking about this the other day when I was driving behind a Toyota with Government number plates.

It should almost be made mandatory, but I guess that would cause other problems (such as build quality and features may decease as Aussie car makers would have "guaranteed" sales each year regardless).

It would help keep a lot of Australian jobs going though, directly and indirectly.

You have a point, but with the increase in exports for hopefuly both Holden and Ford, the days of really dodgey stuff will be lessened. You will always have some kind of issue, but it will get better. Orion will be a good test of that I guess.

The Gov harps on about LPG, gives incentives and then barely uses it themselves, lead by example fellas!

[fou_bleu]

Originally Posted by SVO_XR6

Typical, our gov screwing us anyway they can! :

Hit the nail on the head!

[Fordman1]

Here's another reason for building a smaller car at Ford's plants in Australia.

[Fairlane]

Whenever i see a Kia Sorrento government vehicle it givees me the shits. Why couldnt they get a territory or atleast a Captiva.

Some of the government fleet deals are just plain insane.

[Nostalgia]

Typical Aust Government. Im not saying anymore as i dont want to be banned.

[fou_bleu]

My dad says it's to do with:
1. Fuel ecconomy of Aus cars (compared to say a Camry)
2. Purchase price (Falcon XT: $34,990 vs Camry Altise: $28,000)
3. Service costs

What do you think?

[andrewts]

I think the government should support Australian auto-makers, because the oppurtunity is there. I'd exploit every chance to help the economy of my country, why won't the government give Holden and Ford a fair go?

[Lightning Strike GT]

I actually work in the Govt and in the area of vehicle leasing
The number 1 reason is the cost of the fuel to the Govt
It is now mandatory to lease a 4cyl vehicle unless you are a minister, smo ( senior medical officer) or higher and as well they cannot get a V8 only a 6 cyl and this will hit the FORD and HOLDEN sales in a big way and it is one of the main reasons the Fairlane and LTD are no longer being produced after the BF range
Govt fleet sales is over 50% of the sales for FORD and HOLDEN

[Polyal]

Originally Posted by BF XR8

I actually work in the Govt and in the area of vehicle leasing
The number 1 reason is the cost of the fuel to the Govt
It is now mandatory to lease a 4cyl vehicle unless you are a minister, smo ( senior medical officer) or higher and as well they cannot get a V8 only a 6 cyl and this will hit the FORD and HOLDEN sales in a big way and it is one of the main reasons the Fairlane and LTD are no longer being produced after the BF range
Govt fleet sales is over 50% of the sales for FORD and HOLDEN

Surely LPG would solve this issue, and apparently its better for the environment too.

[Lightning Strike GT]

Originally Posted by Polyal

Surely LPG would solve this issue, and apparently its better for the environment too.

Yep but at the moment the govt does not have a purchasing policy for LPG so it is a no go

[banarcus]

Camrys are built in Australia too.

[Lightning Strike GT]

Originally Posted by Polyal

Surely LPG would solve this issue, and apparently its better for the environment too.

Also I think but put me in my place if I am wrong
The only car with the LPG option from the factory is the E Gas Falcon , the Commodores and the 380's do not have the dedicated gas from factory do they???? and also if the Govt bought all FORDS there would be an out cry of them being bias

[Ghiadude]

Originally Posted by banarcus

Camrys are built in Australia too.

Yeah but.... The real issue is that the govt is buying less and less local content be it camry or falcon. Like someone said earlier its a good reason to start building small cars in australia..something that apparently might be happening sooner rather than later if what i hear on the grapevine is true...

[Polyal]

Originally Posted by BF XR8

Also I think but put me in my place if I am wrong
The only car with the LPG option from the factory is the E Gas Falcon , the Commodores and the 380's do not have the dedicated gas from factory do they???? and also if the Govt bought all FORDS there would be an out cry of them being bias

Initially that would be the case.

While I dont have much of a clue of the gov buys their cars etc, they could state to each manufacturer, that next time they upgrade (or whatever the term is) that they will be buying gas powered cars. Give them say 12months, im sure Holden ad Mitsu (if the 380 is still around) would pull their fingers out then.

[Lightning Strike GT]

Originally Posted by Polyal

Initially that would be the case.

While I dont have much of a clue of the gov buys their cars etc, they could state to each manufacturer, that next time they upgrade (or whatever the term is) that they will be buying gas powered cars. Give them say 12months, im sure Holden ad Mitsu (if the 380 is still around) would pull their fingers out then.

Yep the govt can dictate on the car sales just look at the good ole scare of 72 when the govt said that they would not buy any more Ford, Chrysler or GMH if they did not stop the power play of the cars and that is what killed the "supercar era" of the 70's and they could say the same thing now - make a dedicated LPG version or we will not buy any more of your product it worked in 72 surely it can work in 07
On a bitter note if this was to go ahead I can see the govt putting an excise on LPG - just to get more money of us hard workers

[vztrt]

Originally Posted by BF XR8

Also I think but put me in my place if I am wrong
The only car with the LPG option from the factory is the E Gas Falcon , the Commodores and the 380's do not have the dedicated gas from factory do they???? and also if the Govt bought all FORDS there would be an out cry of them being bias

The VE has a Gas option, but its duel fuel.

[ltd]

Ahh, Kevin Rudd saying he wants all Hybrids. I can see him now in the Pious like in south park. Gets out, lets it rip and then "Sniff Sniff".

Honestly though, it is disgusting to say the least. How dare they all harp on about industry and claim they are successful for businesses remaining here yet fail to endorse the product? I can guarantee you that the boys at Ford have heard speeches from people like Rudd/Gillard/Garrett who all seem to be taken in by this global ****ing shyte, and their comments have also brought about the death knell for the fairlane. Honestly, these two faced bastards make me sick.

[4.9 EF Futura]

Why should the government be forced to prop up these manufacturers?

The govt goes to tender on everything it buys, we expect it for reasons of transparency. But its ok for them to buy oversized, fuel guzzling, environment wrecking tanks without any thought??

Let me guess... if they stocked the fleet with 100% holdens, itd be a disgrace too?

Do we even consider the impact of fleets on the cost of fuel??? Oh that's right - it's the government's job to do something about high petrol prices isnt it??? But they should also be forced to buy 3.6 and 4L 6 cylinder petrol guzzlers?

Oh - and the govt needs to do something about the environment as well. But they're still expected to buy falcons commodores fairmonts calais fairlane statesman????

For one person to drive around in?!?!?!?!?!?

Lol. So, instead of the manufacturers catering for the needs of its largest customers... you're suggesting the customer should be forced to purchase cars that are larger, less fuel efficient and poorly built?

And the impact on second hand values when the state govt tips a few hundred cars off at the local auctions with less than 50,000km on them?

Whenever i see a Kia Sorrento government vehicle it givees me the shits. Why couldnt they get a territory or atleast a Captiva

Do you even know where the capitva is built?

I applaud the government's move to reduce FUEL EXPENSES TO THE TAXPAYER, reduce its impact on the environment AND SEND A CLEAR MESSAGE TO AUSTRALIAN AUTO MANUFACTURERS.

If they keep building dinosaurs, they will go the way of them. Aussie jobs will be better off once we let go of this nonsense concept that we all need 8 square foot of car around us and a bloody big engine to lug it around.

[merlin]

Originally Posted by 4.9 EF Futura

Why should the government be forced to prop up these manufacturers?

The govt goes to tender on everything it buys, we expect it for reasons of transparency. But its ok for them to buy oversized, fuel guzzling, environment wrecking tanks without any thought??

Let me guess... if they stocked the fleet with 100% holdens, itd be a disgrace too?

Do we even consider the impact of fleets on the cost of fuel??? Oh that's right - it's the government's job to do something about high petrol prices isnt it??? But they should also be forced to buy 3.6 and 4L 6 cylinder petrol guzzlers?

Oh - and the govt needs to do something about the environment as well. But they're still expected to buy falcons commodores fairmonts calais fairlane statesman????

For one person to drive around in?!?!?!?!?!?

Lol. So, instead of the manufacturers catering for the needs of its largest customers... you're suggesting the customer should be forced to purchase cars that are larger, less fuel efficient and poorly built?

And the impact on second hand values when the state govt tips a few hundred cars off at the local auctions with less than 50,000km on them?



Do you even know where the capitva is built?

I applaud the government's move to reduce FUEL EXPENSES TO THE TAXPAYER, reduce its impact on the environment AND SEND A CLEAR MESSAGE TO AUSTRALIAN AUTO MANUFACTURERS.

If they keep building dinosaurs, they will go the way of them. Aussie jobs will be better off once we let go of this nonsense concept that we all need 8 square foot of car around us and a bloody big engine to lug it around.

I agree with you 100%. Build a competitive product, instead of relying on handouts. The public and government quite clearly want smaller more fuel efficient cars - deliver it or stop whinging.

EDIT - Governmnet departments are run like businesses now days which is a GOOD thing not a bad thing.

[Gunns]

Originally Posted by 4.9 EF Futura

I applaud the government's move to reduce FUEL EXPENSES TO THE TAXPAYER, reduce its impact on the environment AND SEND A CLEAR MESSAGE TO AUSTRALIAN AUTO MANUFACTURERS.

Then why isn't the the government not buying more LPG cars? It will further reduce impact on the enviroment and cut down massive service and repaire costs that is futher pi$$ing our taxpayer dollars away?

As for everything going out to tender, Come work in my job, it would be a real eye opener. The Government buys what it wants when it wants.

[4.9 EF Futura]

Originally Posted by Gunns

As for everything going out to tender, Come work in my job, it would be a real eye opener. The Government buys what it wants when it wants.

I dont doubt this to be true. Im also unsure what level of govt you're talking about but ive had plenty of exposure to a small (500 people) commonwealth agency's procurement. Even the credit card we are issued with goes to tender.

As merlin points out, government is becoming much more transaprent.

[ClevlndStemer]

Originally Posted by 4.9 EF Futura

*snip*

THANK CHRIST, someone who speaks wisdom. Local cars are just not up to scratch and have very poor resale. Government is still a business.

[merlin]

Originally Posted by Gunns

Then why isn't the the government not buying more LPG cars? It will further reduce impact on the enviroment and cut down massive service and repaire costs that is futher pi$$ing our taxpayer dollars away?

I am not trying to be argumentative here but one particular deparment I know of did buy all LPG Falcons in the last procurement. They all broke...

[Dave_au]

Originally Posted by 4.9 EF Futura

Why should the government be forced to prop up these manufacturers?

The govt goes to tender on everything it buys, we expect it for reasons of transparency. But its ok for them to buy oversized, fuel guzzling, environment wrecking tanks without any thought??

Let me guess... if they stocked the fleet with 100% holdens, itd be a disgrace too?

Do we even consider the impact of fleets on the cost of fuel??? Oh that's right - it's the government's job to do something about high petrol prices isnt it??? But they should also be forced to buy 3.6 and 4L 6 cylinder petrol guzzlers?

Oh - and the govt needs to do something about the environment as well. But they're still expected to buy falcons commodores fairmonts calais fairlane statesman????

For one person to drive around in?!?!?!?!?!?

Lol. So, instead of the manufacturers catering for the needs of its largest customers... you're suggesting the customer should be forced to purchase cars that are larger, less fuel efficient and poorly built?

And the impact on second hand values when the state govt tips a few hundred cars off at the local auctions with less than 50,000km on them?



Do you even know where the capitva is built?

I applaud the government's move to reduce FUEL EXPENSES TO THE TAXPAYER, reduce its impact on the environment AND SEND A CLEAR MESSAGE TO AUSTRALIAN AUTO MANUFACTURERS.

If they keep building dinosaurs, they will go the way of them. Aussie jobs will be better off once we let go of this nonsense concept that we all need 8 square foot of car around us and a bloody big engine to lug it around.

Good post.

[MethodX]

other countries protect their car industries.
Japan, Malaysia.

Why shouldnt we?