THE VEHICLE DEALER’S NEWS SOURCE JANUARY 2020 .COM.AU AFTER MORE THAN 40 YEARS COMMODORE BOWS OUT p4-6 Call to stamp out Five dealerships fake sales reporting change hands p3 p7-8 FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: ADTORQUE EDGE DELIVERING YOUR MARKETING SOLUTIONS Automotive software solutions Driving your business THE VEHICLE DEALER’S NEWS SOURCE All the Auto Industry HOT NEWS every day as it happens on www.autotalk.com.au Subscribe online for FREE twice weekly updates direct to your email. autotalk.com.au/ 2 | AUTOTALK JANUARY 2020 | www.autotalk.com.au NEWSTALK AADA URGES REGULATORS TO STAMP OUT FAKE SALES REPORTING he Australian Automotive Dealer However, he has called on “Many dealers have Association (AADA) is urging regu- the automotive industry been left with a backlog Tlators to stamp out the practice of to take quick action or of unsold stock which falsely reporting vehicle sales figures. risk the regulator forcing is difficult to clear in This potentially harms consumers, compliance through harsh a profitable manner,” investors and dealers, and distorts financial penalties. Voortman adds. key data that is relied upon across the “Requiring a vehicle to be “These practices also economy. registered before it is sold undermine the credibility It was reported that the US Securities and is an important step, but of new car sales numbers Exchange Commission (SEC) opened an it is only a first step and reported through the investigation into BMW, and September the whole industry should James Voortman VFACTs product, which last year saw Fiat Chrysler agreeing to be working together to is used by investors, pay the SEC $40 million over claims it ensure that cars are only reported as sold economists and the Government in inflated sales figures. when a genuine customer takes delivery assessing the health of the industry “The practice of reporting false new of the car. and the broader economy and then car sales figures has been highlighted making key decisions off the back of that recently in the United States and it is information.” a practice that has been endemic in “In recent years some How does false automotive sales data Australia for some time,” AADA chief manufacturers in impact us? executive James Voortman says. • Consumers are left vulnerable “It potentially leaves consumers Australia have focused regarding the start time of their war- vulnerable regarding the start time of solely on sales volumes ranty. their warranty; it misleads investors • A vehicle is the second largest by overstating the health of the which has led to investment a household makes, after Australian automotive industry, and it questionable reporting buying a home; and is therefore puts the squeeze on dealers who are practices and severely a key indicator of consumer con- currently experiencing some of the fidence and Australia’s economic most challenging market conditions in constrained the health. decades,” Voortman says. profitability of dealers." • It can influence important decisions The Federal Chamber of Automotive related to the economy, like interest Industries (FCAI) released the 2019 rates that impact all households. figures which show the lowest annual “In recent years some manufacturers in vehicles result in nine years, decreasing “It’s an open secret in the industry that Australia have focused solely on sales by 7.8%. a number of major manufacturers set volumes which has led to questionable Voortman says it is time for the Australian incredibly aggressive sales targets reporting practices and severely Securities and Investments Commission placing immense pressure on their constrained the profitability of dealers." (ASIC) to follow the US regulators and dealers to achieve these targets by Today, we see the 21st consecutive reprimand those manufacturers that push reporting cars as sold, despite there month in which new car sales have fake sales numbers. being no end customer.” contracted – surely now is the time He commends FCAI on its work to Voortman explains that dealers are to bring the focus back to profitability continually improve the integrity of the compelled to comply with manufacturer to ensure a sustainable future for the VFACTs data and welcomes moves by directives, as they fear being denied industry,” Voortman says. Australian car importers to improve sales important incentive payments, or losing reporting practices. their franchise agreement. AUTOTALK JANUARY 2020 | www.autotalk.com.au | 3 AutoTalk Magazine and autotalk.co.nz AFTER MORE are published by Auto Media Group 8/152 Quay Street, Limited. P.O. Box 10 50 10, Auckland City, 1030. Ph. 09 309 2444 THAN 40 YEARS MANAGING EDITOR Richard Edwards 021 556 655 COMMODORE [email protected] ASSISTANT EDITOR BOWS OUT Geoff Dobson 021 881 823 [email protected] JOURNALIST Sophia Wang 021 240 2402 [email protected] BUSINESS MANAGER Dale Stevenson 021 446 214 [email protected] RECRUITMENT SPECIALIST / PRODUCTION Fran Da Silva 021 933 279 [email protected] GROUP GENERAL MANAGER Deborah Baxter 027 530 5016 [email protected] It’s an ironic twist in the history of So successful was the Australian one of Australia’s most iconic Holden engineered mash-up of the Rekord/ PUBLISHER / CHAIR nameplates that the Commodore journey Senator body shell that Opel itself Vern Whitehead began in 1978 and will finish in 2020 with produced the car and called it the 021 831 153 a mid-size car sourced from Opel. Commodore C. [email protected] That Opel bookends the Commodore However, under the sheetmetal the story shows how Holden was and Aussie-built VB Commodore differed Auto Media Group Limited makes every endeavour to ensure information contained in this continues to be integrated into GM's significantly to its European cousins, publication is accurate, however we are not liable international operations. with major upgrades to the chassis, for any losses or issues resulting from its use. Commodore sales in Australia peaked at suspension, steering, plastics, and Annual subscription: $84 + gst ($96.60) more than 94,000 units in 1998 but fell cooling system, to cope with the Printed by: Alpine Printers. to just over 9000 units in 2018 as buyers harsher conditions that our climate and moved out of passenger cars and into outback roads would throw at it. Extra SUVs and double-cab utes. strengthening was thrown at the body Unlike the ZB Commodore series which Continued on page 5 is fully imported from PSA- owned Opel in Europe, the 1978 autotalk.co.nz VB Commodore was a locally autotalk.com.au produced and engineered car based on the mid-size Opel Rekord transporttalk.co.nz body shell with the nose of the transporttalk.com.au Opel Senator grafted to it. evtalk.co.nz The reason for this was so that evtalk.com.au the Aussie car could fit both six- wheeltalk.co.nz cylinder and V8 engines under the hood as well as rack and identicar.co.nz pinion steering. 4 | AUTOTALK JANUARY 2020 | www.autotalk.com.au NEWSTALK Continued from page 4 panels which were constructed from solid BHP steel. The VB offered buyers the choice of a 64kW 2.85-litre or a 66kW 3.3-litre in-line six-cylinder engine or an 87kW 4.2-litre or 114kW 5-litre V8 engine, transmissions were four-speed manual or three-speed automatic. Holden’s asthmatic 58kW 1.9-litre four-cylinder Starfire engine was exported to New Zealand in CKD kits for VB models assembled at Trentham, north of Wellington. Thanks to its modern design the VB Commodore offered more head and legroom than the outgoing Kingswood, although the older car had four more centimetres of shoulder room. Inspite of the Commodore taking out the 1979 Wheels Car of the Year award, the smaller car lost some fleet sales to the larger Ford Falcon. During its lifetime from October 1978 to March 1980, Holden manufactured more than 95,000 VB Commodores. Holden launched the VC Commodore in 1980 with minor tweaks to the engine range for economy and steering and suspension for comfort, but the 1981 VH Commodore series brought a raft of cosmetic changes as well as the option of a five-speed manual transmission on the four and six-cylinder models. The company sold more than 78,000 units in 1982. Updated in 1984 the VK Commodore introduced a six-window glasshouse design as opposed to the older Again, the company turned to Opel for the return of wheel arch flares over the cars' four-window set up, as well as a donor vehicle to engineer to local front and rear guards. redesigned radiator grille and new conditions. The 1988 VN Commodore In 1995 the revamped VS Commodore plastic bumpers. Holden ditched the used a stretched and widened VL saw significant upgrades to the V6 2.85-litre six and the 4.2-litre V8, and platform over which sat a locally designed engine now dubbed “Ecotec” and a the 1.9-litre four-cylinder was kept solely and widened version of the new Opel supercharged version became available. for the New Zealand market. Omega/Senator body. The VR and VS models also saw the The VL update in 1986 saw an all-new The new longer wide-body VN introduction of driver and passenger nose design for the Commodore with Commodore also received a new 3.8-litre airbags to complement the ABS system. sleeker headlamps and much narrower V6 engine and four-speed automatic grille while the upmarket Calais version transmission instead of the previous Third generation received a semi-concealed headlamp Nissan inline sixes. The venerable Holden design. The VL saw the introduction of 5-litre V8 engine was re-engineered for Introduced in 1997 the VT Commodore 3-litre six-cylinder engines both naturally multipoint injection with an output of was an all-new car designed in Australian aspirated and also turbocharged sourced 165kW.