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Bathed In A Yellow Glow
Join Date: Mar 2010
Location: NSW Central Coast
Posts: 2,530
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Where was my car built?
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Quote:
Where was my car built?
Why many models are built in places you wouldn't expect.
David McCowen
9 September, 2016
Mid-size luxury comparison test: Audi A4, Mercedes-Benz C-Class, Lexus IS, BMW 3-Series, Jaguar XE Photo: Mark Bean
The clichιs run thick.
Many people will tell you that cars reflect national stereotypes, and sometimes they are right.
Australian cars are big, relaxed machines well adapted to their local environment, German vehicles are works of precision, Japanese cars represent conservative competence, and Italian cars have brio. Korean machines are earnest, French cars elegantly aloof and American metal represents heavy-handed design and diplomacy, Detroit-style.
Renault says it will always be a French brand, despite building key models such as the Koleos in Korea. Photo: Supplied
But those assumptions are wrong in many cases, especially so when you consider that many vehicles are built far away from their manufacturers' original base, suggesting many of the personality traits people see in cars are works of design and marketing or they simply aren't there.
There's plenty of evidence vehicle characteristics shouldn't be attached to any particular flag.
There's the new American crossover built in Italy, that eye-catching French machine assembled in Korea, Korean companies sourcing plenty of vehicles from Europe, and some of Europe's best-known prestige brands importing a good number of cars from Africa and America.
Though it has strong roots in Germany, Volkswagen builds models such as the Beetle in Mexico. Photo: Supplied
The motoring world is an increasingly global one, and Australia is a fine case study. We have more brands offering new cars than just about anywhere else in the world, we have a bottomless appetite for performance cars, prestige vehicles and SUVs and we have a local car manufacturing industry in palliative care.
Australiana
Ford and Holden have given up promoting Australian models such as the Falcon and Commodore, shedding home-grown imagery in a Euro-chic metamorphosis to rival teenage gap year butterflies.
Holden will tell you plenty about how it plans to import the best possible cars from around the world, sourcing machines from America, Europe and Asia to stay relevant to the Australian market.
Ford already does this well, roping in the Mustang sports car from America, the Ranger ute from Thailand and the Focus RS hot hatch from Germany models proving immensely successful in their respective segments.
Team Red's lineup is a little less convincing the outgoing Polish-built Astra is an anachronism, and its Korean-sourced Malibu and Trax have misfired in important markets - but there is light on the horizon in the form of its new Spark city car, a fresh Astra on the way this year and the upcoming US-sourced GMC Acadia family SUV in the near future.
Mercedes-Benz' prestige family SUVs in the GLE and GLS-class are assembled in America.
Though Toyota thrives, the last decade has represented a difficult transformation for Ford and Holden as buyers tastes changed, the market diversified and local sedans lost their place as a default choice for businesses and families alike.
Australian factories built almost 28 per cent of the 787,100 cars sold in locally in 2000, a number that has dropped to around 7 per cent of the 1.2 million cars set to be delivered this year.
July represented a benchmark month for the local industry, as Japan lost its place as the number one source of Australian cars to Thailand. Bolstered by a strong free trade agreement and the popularity of dual-cab utes (Nissan, Mitsubishi, Ford, Holden, Toyota and Mazda all build pick-ups there), Bangkok has become a regional automotive centre to rival the likes of Tokyo.
Unexpected links
Australian cars are built in more than two dozen countries around the world, on every continent but Antarctica.
Volkswagen's local operation imports the Amarok ute from Argentina and the Beetle hatch from Mexico, Toyota's Kluger hails from the US, Suzuki's APV is built in Indonesia and Proton's entire lineup hails from Malaysia.
Car companies used to be sensitive about models built outside traditional borders, but they say attitudes are relaxing. Renault will happily tell you that its new Koleos is built in Korea - where the car is sold as a Samsung - and that the Clio comes from Turkey.
Justin Hocevar, managing director for Renault Australia, is adamant that the brand will retain its French identity.
"That's the DNA of the brand, its French origins," he says.
"Our point of difference will always revolve around the Frenchness of the brand and the things that have built the brand's DNA over time."
Hocevar says consumer attitudes toward countries of origin have changed.
"The feedback that we get is that people aren't as interested in it these days," he says.
"They've come to accept that vehicles are made all over the world. I think they've still got perceptions about which markets have a higher level of trust and a lower level of trust.
"I think people will buy goods made in China all day, every day, but there's still a big question mark over vehicles made in China."
The case for Chinese vehicles wasn't helped by early cut-price offerings from Chery and Great Wall that couldn't match the quality of established rivals.
Haval and MG hope to change community perceptions with cars designed to compete on equal footing with the likes of Mazda and Honda, and Great Wall is on the cusp of launching a fresh assault on the pick-up market.
The greater test will come when European luxury brands source Australian models from China.
Audi, BMW and Mercedes-Benz all build cars there for the Chinese market, and it's possible that future cars could come to Sydney via Shanghai. Volvo is owned by China's Geely, and the rapid growth of production capabilities and innovation there is likely to bear fruit in the near future.
The prestige position
Few brands' national identity can match the German triumvirate of Audi, BMW and Mercedes-Benz, pillars of the prestige car industry.
But all three build cars well outside Germany, and there are plans in place to cast their nets further afield.
Audi currently sources local models from Germany, Slovakia, Hungary, Spain and Belgium, and its next Q5 crossover will hail from Mexico.
BMW and Mercedes share similar strategies by building family SUVs in America and entry-level executive sedans in South Africa.
Volkswagen recently took a swipe at the pair in a media release for the new Passat, hinting at African production of the 3-Series and C-Class by saying that "unlike certain prestige competitors with German badges, the Passat is made in Europe".
Mercedes-Benz spokesman David McCarthy says there is no difference between models built in Europe or abroad.
"Every factory has the same quality index to adhere to," he says.
"The C-Class sedan comes from South Africa, the C63 comes from Germany, the Estate and Coupe come from Germany.
"We don't have an issue with where they come from and I don't think our customers do either.
"It's the quality of car that matters."
Mercedes' iconic G-Class SUV is built under license by Magna Steyr in Austria and its upcoming ute will come from Spain.
McCarthy says the decision to spread manufacturing across the globe leaves the brand less vulnerable to potential hang-ups ranging from natural disasters to labour disputes and component shortages that can cripple carmakers.
"If you have all your plants in one place you leave yourself open to having supply problems that can become a major issue," he says.
"We don't have that issue."
Lexus takes a different strategy, importing all of its Australian models from the brand's core plants in Japan. But that won't by the case forever.
What's next?
There are plenty of forces at play in deciding where cars are built. Politics is no doubt a major factor, and lukewarm support in Canberra brought forward the end of local manufacturing in Australia. Many governments lobby carmakers to build cars on their turf, offering incentives in exchange for the employment opportunities bought by automotive factories.
Exchange rates, labour costs and free trade agreements all come into consideration, as do broader strategic strategies to conquer new lands
China is likely to play a significant role in Australia's automotive future as established companies work with Asian partners in joint venture agreements pushing green tech and self-driving capabilities.
Vivek Wadhwa, director of research at Duke University's Center for Entrepreneurship and Research Commercialization, says underqualified engineers, intellectual property concerns and increasing labour costs will push car companies away from China.
It's possible the nation's booming middle class could see China shift from being a hub for cheap labour, which could push manufacturing back to established strongholds in Europe or the US, or into new ground in Africa or South Asia.
Technical development represents another key factor at play.
Engines currently represent one of the most difficult elements of the car for would-be manufacturers, and the challenge of juggling power, economy, reliability and refinement is enough to prevent fringe brands from creating their own machines from the ground up.
But electric power could change that, and shift the balance of power away from the likes of Toyota and Volkswagen and toward battery or electric motor providers.
Google and Apple are working to change the way cars work, blending their own software with off-the-shelf electric motors, and Tesla's electric range proves you don't need an internal combustion engine to offer outstanding prestige and performance cars.
The big car companies are fighting back, and they are keen to impress corporate values on their next-generation models. Mercedes-AMG is working on its own interpretation of the electric performance car and Porsche is adamant that the road-going version of its Tesla-fighting Mission E concept will still feel like a Porsche.
The clichιs could be set to ride again.
Top 10 countries supplying cars for Australia: 2015
1 - Japan 335,288
2 - Thailand 249,804
3 Korea 140,172
4 Australia 97,443 (8.73)
5 - Germany 87,894
6 - USA 58,104
7 - England 32,084
8 - South Africa 20,401
9 - Czech 18,093
10 - Spain 17,657
Total vehicles: 1,115,408
Top 10 countries supplying cars for Australia: 2006
1 - Japan 367,443
2 - Australia 201,623 (20.94%)
3 - Thailand 103,160
4 - Korea 95,443
5 - Germany 32,829
6 - South Africa 38,942
7 - Belgium 19,616
8 - Spain 14,168
9 - France 13,787
10 - USA 10,027
Total vehicles: 962,666
Source: VFacts
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http://www.drive.com.au/motor-news/w...05-gr9hzn.html
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09-09-2016, 11:42 AM
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