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The Mercury Cars Guide : April 10th 2010
4--- Classifieds 62 300 400 • carsguide.com.au Saturday, April 10, 2010 Chinese growth a safe bet EXPANSION: Geely chairman Li Shufu speaks during a press conference after the signing ceremony in Gothenburg, Sweden. The global automotive market is changing shape as manufacturers from the two fastest-emerging car markets fork out billions to get access to established marques. Stuart Martin reports T HE automotive appetite in China is ravenous, with the country having overtaken the US as the world's largest new-car market at more than 13 million --- and it's not done yet. To put that into perspective, Aust- ralia's new-car market record annual tally was 1,049,982 sales in 2007. China's new-vehicle sales grew 46 per cent year-on-year in February alone, to more than 1.21 million units for the month. Not only are the Chinese now buying more cars than anywhere else in the world, they are looking to buy brands as well. Geely put nearly $2.18 billion into Ford Motor Company's coffers for Volvo, well under the $7.03 billion Ford US paid for the Swedish marque almost 10 years ago. The deal buys Geely Volvo's main plants in Sweden and Belgium, staffed by 20,000 employees, as well as more than 2500 dealers in 100 countries. But the most important aspect for Geely is the crash-test research and technology, something for which the Chinese brands are not yet renowned. Ford president and chief executive Alan Mulally said the sale to Geely provided a solid foundation for Volvo to build its business, and Volvo Cars chief Stephen Odell said the deal would allow Volvo to move forward. ''We believe this is the right out- come for the business, and will provide Volvo Cars with the necess- ary resources, including the capital investment, to strengthen the busi- ness and to continue to move it forward in the future,'' Odell said. Zhejiang Geely Holding Group Ltd chairman Li Shufu was pleased to have finalised the agreement with Ford, enabling his company ''to safe- guard and strengthen Volvo's re- nowned brand heritage''. ''This famous Swedish premium brand will remain true to its core values of safety, quality, environ- mental care and modern Scandin- avian design,'' Li said. He said Volvo Cars would be maintained as a separate company with its own Gothenburg-based man- agement team but with a new board of directors and ''ambitious plans in the fast-growing Chinese market''. Li wants Geely, founded in 1986, to be selling two million vehicles annu- ally by 2015, up from just 330,000 last year --- in part using Volvo. ''China, the largest car market in the world, will become Volvo's second home market,'' he said. ''Volvo will be uniquely positioned as a world- leading premium brand, tapping into the opportunities in the fast-growing China market.'' The Chinese domestic market leapt to 13.6 million sales last year, a 45 per cent increase on the back of tax cuts and subsidies for small cars. Volvo's share is currently just 22,000 units. Geely is looking to build a Volvo plant in China that could manufac- ture 300,000 vehicles a year, close to Volvo's total global sales in 2009 of just under 335,000 cars. Volvo's big three markets currently are the US, Sweden and the UK, but Geely wants to tap into the expanding Chinese prestige market, boosting its sales to nearer 200,000 within the next five years. Geely sold 329,104 vehicles last year, predominantly low-cost small cars --- the segment it is first expected to be seen competing in when it starts selling cars in Australia. The company will join Great Wall and Chery, the former already selling light commercials and SUVs, while the latter's Australian introduction has been delayed until mid-2010. Chinese brand Lifan is also des- tined for Australia. Nissan recently rolled out statistics predicting the global population would rise from 6.7 billion to nine billion by 2050. The Chinese demand for cars is not expected to wane --- if anything, the growing middle class in the world's most populous nation will increase the rate of car ownership. Currently there are 50 cars per 1000 people in China (compared with 800 cars per 1000 people in the US). Even with a similar rise in car numbers to match the population growth, the current 600 million-car global carpark would grow to 2.5 billion cars in the same period. Part of that growth will also come from the other burgeoning new car market in India, which has also bought from Ford Motor Company. The irony was not lost on the industry when a company from one of the colonies of the former British Empire bought one of the symbols of the British upper classes, Jaguar. The Indian market is forecast to reach two million this year, with estimates suggesting it will triple in the next decade. Currently, India is the second largest country in the world after China in terms of population. By 2030, the population of India will be the largest in the world, estimated to be 1.53 billion. Conditions: All cars must be ordered and delivered between 1st April and 30th June 2010. Offer valid at participating dealers on existing dealer stock while stocks last. Offers exclude fleet, rental and govt. buyers and vehicles used for commercial purposes. Hyundai reserves the right to change, supersede or extend these offers. The 5 Year/ unlimited kilometre warranty is only applicable to vehicles used for private and domestic use and is not applicable for vehicles used for certain high mileage commercial purposes i.e. courier, security and rental cars. iPod is a registered trademark of Apple Computer Inc. , registered in the U.S. and other countries. Bluetooth is a registered trademark of Bluetooth SIG, Inc ^ADR 81/02 fuel consumption will vary depending on a combination of driving habits, road conditions and condition of vehicle. 1. Most Economical Small Car to Own and Run 2009 awarded by RACT to i30 SX 2.0. 2. Source VFACTS February 2010. 3. Awarded to i30cw wagon CRDi by ECO Car magazine. A) Campaign price for MY09 i30 2.0 SX manual. While stocks last. B) Campaign price for Getz 1.4, 3 door manual. C) Campaign price for i30cw wagon 2.0 SX manual. HMCA1306/HPC/HM MOTORS PTY LTD HOBART CNR COLLINS AND BARRACK ST HOBART 6230 7220 5-STAR QUALITY FROM EVERY ANGLE FOR PEACE OF MIND NO MATTER WHAT ROAD YOU TAKE 2009 MOST ECONOMICAL CAR TO OWN AND RUN1 ESP Stability Control with Traction Control 2.0 petrol 7.2L/100km^ ABS with EBD iPod & USB connectivity Full size spare Glovebox drinks cooler stylE AUSTRALIA S FAVOURITE ECONOMICAL CAR2 6. 1L /100km^ Bluetooth Immobiliser & alarm Remote keyless entry Full size spare Air Con with pollen filter GETZ FROM $12,990BDRIVE AWAY ECONOMY 2009 ECO CAR OF THE YEAR3 2.0 petrol 7.3L /100km^ 1,395L of luggage space iPod & USB connectivity 6 airbags ESP Stability Control Luggage net Roof rails i30cw FROM $22,990C DRIVE AWAY wagon i30HATCH FROM $19,990A DRIVE AWAY MY09 RUNOUT hyundai.com.au/offers or call 1800 186 306
March 27th 2010
April 17th 2010