Just a decade or so ago two car models dominated the Australian motor industry. It was the ambition of most Australian families to own either a Holden Commodore or a Ford Falcon. Both were produced in a choice of sedan or wagon models and their size suited the average family. Sales are still significant, but they no longer rule the roost and Holden has announced that it will cease production for several days between now and Christmas at it's assembly plant at Elizabeth in South Australia.
For some strange reason, these two cars fell out of favour with the car buying public. Motor industry journalists have suggested many reasons , but none of these make perfect sense. It is suggested that the higher cost of petrol caused their demise, but many of the buying public opted for hulking great Sports Utility vehicles - gas guzzlers in the true sense of that word.
Times are hard and there is no doubt that world car manufacturing is luring buyers on price. Most marques offer a badged small car, but this is not produced in one of their assembly factories. Two countries - South Korea and India - are the source of most of the high quality - low priced small car models making huge inroads into the world car markets. These are quality products, and their makers have the confidence to offer a five year unlimited mileage factory warranty.
Another option finding favour with buyers - is the choice of a diesel engine. An increasing number of models now come in both petrol or diesel mode, and the diesel engine has come a long way from the noisy, clattering, glow plug waiting - engine that belched black smoke and emitted foul smells. Today's diesels are hard to pick from their petrol cousins - except that they deliver better fuel mileage.
Car manufacturing is still a labour intensive industry, despite the steady progress of welding robots and automation of the production line. Both national and state governments are being held hostage to the jobs they provide. Each model choice is the result of a bargain in which the government provides some sort of financial incentive to keep the manufacturing plant from escaping to another country - until the end of that model brings a new round of decision making.
So - what is the future looking like for the Commodore and the Falcon ?
Unfortunately, both will probably disappear within the time of another decade. With private buyers deserting them in droves, the remaining big market segments are the fleet buyers. The taxi fleets of Australia are almost exclusively Falcon. Government departments are big buyers of cars and obviously the type and brand is subject to diktat. The commercial world has favoured both of the big Australian sixes as their choice for sales representatives and executive transport. It seems that fleet operations are the last refuge for Commodore and Falcon.
Not so long ago, having a company car provided was one of the perks of many jobs. Since then, the increasing cost of new vehicles and the introduction of things like " the fringe benefits tax " have altered the equation. The necessity of providing a car is being questioned, and the balance is swinging into paying the employee compensation for using his or her personal vehicle for business tasks. This is producing a different pressure on buying decisions. Some employees see this as a chance to move upmarket in the car they drive because the cost is now not entirely from their own pocket - and that choice is more likely to take the market into higher priced, imported luxury vehicles.
Commodore has seen sales slip by abut 27% and Falcon faces a similar scenario. Producing a new model is a huge expense and both manufacturers will be gazing into the crystal ball to determine if that outlay is warranted. It is unlikely that the present situation will change for the better and the current Falcon may be the last model to roll off the production line. Commodore may make a final model, but it seems certain that the days of these iconic vehicles are coming to an end !
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