Newly appointed Ford Australia president Bill Osborne brashly predicts that not only will the Falcon survive a threat to its existence, it will overtake the Holden Commodore as the family car leader. It’s a big call as, aside from beating the Commodore by a few dozen sales in September 2003, the Falcon has not been a dominant force in the large-car segment for more than a decade.

The FG Falcon arrives for duty in May, with the eighth-generation family car coming at a time when the segment has been decimated chiefly by those migrating to SUVs or downsizing in fuel economy and cabin space to medium and small cars.

The market for large cars has dipped by as much as 20 per cent on year-to-date figures to the end of February. The Falcon is down 1288 while the Commodore has dropped 1495. Dark clouds continue to give the domestic family car bunch a gloomy future but Osborne remains optimistic the sales erosion will not continue.

Ford says it has managed its run-out of the existing BF Falcon to the point where it will have a clean changeover with few run-out models remaining. Osborne doesn’t expect the large car segment to rebound to a significant extent, although he says the FG will help rebuild Falcon sales.

He says the FG will ultimately overtake the VE Commodore but won’t nominate time frame or market-share figure.

“I have no fear of comparing this product head-to-head with the Holden or the Toyota (Aurion) offering because I do believe it is world-class,” Osborne says.

Ford’s challenge is going to be spreading the message far and wide enough that people will come and drive the FG Falcon.

“It’s up to us to convince consumers we have the best product in that market and up to our dealers to get people in the vehicles and drive them head-to-head,” he says.

“If you offer a product for a compelling and appealing price and tell enough people about it, eventually they will come.”

However, Osborne says there is no silver bullet that will bring people back to large cars, saying that offering the best engineered sedan was crucial.

“Our simple strategy is to offer the best-engineered and built sedan in the segment,” he says.

“It’s still an important segment for us and we plan to do well in the class.”

In a year that heralds another milestone in the Falcon’s history, the Falcon-based Territory faces its moment of truth. There is no upgrade for 2008 and the versatile wagon is now treading water in sales volume in a segment where business continues to soar, driven chiefly by Toyota’s Kluger and solid Holden Captiva business.

Priced from $16,500, the Mazda2 has won concerted praise since the new model was launched in Australia last year. Forty-seven jurors from 24 countries determined the winner based on a range of factors, including styling, quality and safety.

The Ford Mondeo and the Mercedes C-Class were the other nominees for the main prize from an initial list of 39 cars. The Mazda2 also made it into the top three for the World Car Design Of The Year award along with the Volvo C30 small car and the eventual winner the Audi R8 supercar.

The $259,900 R8 claimed two of the four awards as it also won the World Performance Car award.

BMW’s little 118d 1-series diesel won the World Green Car Of The Year award. The WCOTY awards started in 2004 and are run by motoring journalists.

“This is wonderful recognition which Mazda2 car owners and Mazda employees alike can celebrate,” Mazda spokesman Dan Morris says.

The Mazda2 Maxx finished third in the 2007 Carsguide Car Of The Year poll.

It was awarded 75 points and finished behind the winning Hyundai i30 CRDi (94 points) and the VW Golf TSi (86). The green victor, the BMW 118d is not sold in Australia. It won the award based on low fuel consumption (4.5litres per 100km) and clean emissions of 119 grams per kilometre.

The nearest equivalent model in Australia is the $48,000 BMW 120d, which has the same engine, 25kW more power but consequently higher fuel consumption (6.1litres per 100km) and emissions (162grams per km).

The award panel found; “Jurors felt that BMW’s EfficentDynamics technology, as applied to the 118d, comprises a range of features and improvements with the specific purpose of reducing fuel consumption and lowering emissions. Its 2.0-litre turbo-diesel engine, with third-generation common-rail fuel injection, piezo injectors and up to 2000 bar injection pressure is said to reduce fuel consumption by up to 8 per cent.”

Runners up were the Smart Fortwo cdi and the VW Passat 1.9 TDI.

The Audi beat the BMW M3 and the Audi S5 Coupe to win the performance car award.

The judging panel found; “The Audi R8 has solid credentials on paper thanks to its mid-mounted 4.2-litre V8 engine and aluminium construction."

“But where it excels is in the exceptional balance, refinement and control that grant the driver the confidence to push to the limit without fear of unintended consequences."

“That limit is high, with 0-100km/h acceleration of 4.4 seconds and a top speed of 300km/h."

“The R8’s dramatic visible carbon fibre side panels make a traffic-stopping visual statement, one that it backs up on the test track with astonishing precision for a car of its size category. The R8 is a surprisingly good value for its class.”

World of winners

World Car Of The Year: Mazda2

Performance Car Of The Year: Audi R8

Car Design Of The Year: Audi R8

Green Car Of The Year: BMW 118d

In August 2006, a month after Holden released the new VE Commodore; HSV introduced its own new E-Series. It came with changes to the exhaust system and the LS2 engine gained an extra 10kW, powering it up to 307 kW.

The latest E-Series engine upgrade means that the power output for the ClubSport R8, GTS, Senator Signature, Maloo R8 and VM Grange’s power output will increase to 317kW.

Managing director Scott Grant believes the new engine, the LS3 is a welcome upgrade for Australia’s HSV models.

“We know our customers want the latest and greatest technology in their cars” he said.

“The general Motors LS3 engine continues the HSV tradition of sourcing the world for technological advancements to enhance the driving experience,” Scott Grant said.

The LS3 engine built by General Motors Powertrain in North America will also be used in the new Pontiac GXP. The GXP will be built by Holden in Australia, which will export it to the United States at the end of 2008.

The 6.2 litre LS3, produces 317 kW at 6000 rpm and 550 Nm of torque at 4600 rpm.

Production of the LS3 will begin this month and should be available in April 2008.

Ford Motor Company announced today that it has entered into a definitive agreement to sell its Jaguar Land Rover operations to Tata Motors.

The transaction is the culmination of Ford’s decision last August to explore strategic options for the Jaguar Land Rover business, as the company accelerates its focus on its core Ford brand and "One Ford" global transformation.

The sale is expected to close by the end of the next quarter and is subject to customary closing conditions, including receipt of applicable regulatory approvals.

The total amount to be paid in cash by Tata Motors for Jaguar Land Rover upon closing will be approximately US $2.3billion. At closing, Ford will then contribute up to approximately US $600 million to the Jaguar Land Rover pension plans.

"Jaguar and Land Rover are terrific brands," said Alan Mulally, president and CEO, Ford Motor Company. "We are confident that they are leaving our fold with the products, plan and team to continue to thrive under Tata’s stewardship. Now, it is time for Ford to concentrate on integrating the Ford brand globally, as we implement our plan to create a strong Ford Motor Company that delivers profitable growth for all."

"This is a good agreement. It provides the Jaguar Land Rover management team and employees with the assurances needed to maintain their focus on delivering the best results for the business," said Lewis Booth, executive vice president, Ford Motor Company, who has responsibility for Ford of Europe, Volvo and Jaguar Land Rover. "I am confident that, under its new owner, Jaguar Land Rover will continue to build upon the significant improvements and product successes it has achieved in recent years."

As part of the transaction, Ford will continue to supply Jaguar Land Rover for differing periods with powertrains, stampings and other vehicle components, in addition to a variety of technologies, such as environmental and platform technologies. Ford also has committed to provide engineering support, including research and development, plus information technology, accounting and other services.

In addition, Ford Motor Credit Company will provide financing for Jaguar and Land Rover dealers and customers during a transitional period, which can vary by market, of up to 12 months.

The parties believe these arrangements will support Jaguar Land Rover’s current product plans, while providing Jaguar Land Rover freedom to develop its own stand-alone capabilities in the future that will best serve its premium manufacturer requirements.

The parties do not anticipate any significant changes to Jaguar Land Rover employees’ terms of employment on completion.

Speaking about today’s agreement, Mr. Ratan N. Tata, Chairman of Tata Sons and Tata Motors, commented: "We are very pleased at the prospect of Jaguar Land Rover being a significant part of our automotive business. We have enormous respect for the two brands and will endeavour to preserve and build on their heritage and competitiveness, keeping their identities intact. We aim to support their growth, while holding true to our principles of allowing the management and employees to bring their experience and expertise to bear on the growth of the business."

Jaguar Land Rover’s employees, trade unions and the UK Government have been kept informed of developments as the sale process progressed and have indicated their support for the agreement.

Speaking on behalf of Jaguar Land Rover, Geoff Polites, chief executive officer, said: "Jaguar Land Rover’s management team is very pleased that Ford and Tata Motors have come to an agreement today. Our team has been consulted extensively on the deal content and feels confident that it provides for the business needs of both our brands going forward.

"We have also had the opportunity to meet senior executives from Tata Motors and the Tata group," Polites continued. "They have expressed confidence in the team that has delivered significant improvements in Jaguar Land Rover’s business performance. We feel confident that we can forge a strong working relationship with our new parent company, and we look forward to a bright and successful future for Jaguar Land Rover."

The Australian new-car market will soon see the Cadillac badge return to showrooms, but an event in Adelaide next week will refresh our Cadillac memories. While the reintroduction of Cadillac - it was last sold here between 1960 and 1973 - will begin with the CTS sedan in the last quarter of this year, more than 100 older Cadillacs will arrive here tomorrow for the Cadillac and LaSalle Nationals.

More than two dozen pre-1930 and at least 40 Cadillacs with some of the biggest fins yet seen on a car will be here until Tuesday. The biennial event will be based in the Barossa Valley.

National Cadillac Club of Australia SA branch president Ian Robertson says; it is the first time in the club’s 31-year history to have entries from every Australian state and territory for the Cadillac Escape. “The event promises to be one of the largest gatherings of Cadillacs ever seen in Australia,” he says.

The event also has confirmed entrants from the U.S., Canada, Britain and New Zealand.

Activities include a car show at the Australian National Motor Museum, Birdwood, and a drive to the top of the Barossa Valley’s highest point for panoramic photos.

Mr Robertson says a wide variety of Cadillacs will be at the event.

“The cars range from the 1905 Model F Tourer, through to a 1994 Eldorado Touring Coupe,” he says.

“In between, there will be the elegant 1920s models, the Art Deco models of the ’30s and ’40s, the giant fins of the ’50s and ’60s and to the utter opulence of the Fleetwood d’Elegance models of the ’80s.”

But the Australasian New Car Assessment Program results show that more can be done to improve occupant protection in the popular commercial vehicles.

The VE Commodore Ute, which is exported to New Zealand and South Africa, has a range of standard safety features, including anti-lock brakes, electronic brake distribution and electronic stability control.

GM Holden spokesman John Lindsay said it was introducing stability control as standard on all Australian-built cars.

“The recent addition of six airbags as standard on our Commodore sedan range is a further illustration of our commitment to passenger safety in our vehicles,” he said.

The VE Ute also beat the Japanese Mazda BT50 4×4 and Nissan Navara D40 4×4, which rated three stars, while the Indian Mahindra Pik-up rated only two stars under ANCAP’s sister program, EuroNCAP.

The Commodore Ute, which was voted most popular car in the 2007 Carsguide Car of the Year awards, was yesterday announced as a finalist in the Australian International Design Awards automotive section along with the Audi TT and R8, VW Eos and Honda Civic Type R. The winner will be announced on May 30.

ANCAP chairman Lauchlan McIntosh said the trend toward improved safety showed that utility vehicles could earn five-star ratings in the near future.

“Manufacturers are building key safety technologies as standard features in many of their models — and while some utes are definitely safer than they were five years ago, more needs to be done,” he said.

In a recent EuroNCAP test, the Navara was declared an “unacceptably high” risk for fatal head or neck injuries in a front-on collision.

Other complaints were “the Navara’s passenger compartment became unstable” and “the airbags and seatbelt pre-tensioners were triggered late in the impact”.

After an airbag software upgrade, the vehicle scored three stars.

Nissan Australia is contacting customers to take Navaras back for an upgrade to the airbag software.

The Ford Ranger, which shares the Mazda BT50 platform, is also expected to gain three stars.

Other EuroNCAP ratings for vehicles sold in Australia are the new Fiat 500 fitted with ESC, the Volvo V70 and Peugeot 308 with ESC and knee airbag, which scored five stars, and four stars for the Fiat 500 without ESC, the Peugeot 308 without ESC or knee airbag and the BMW X3.

The last of the Mitsubishi 380s will come off the production line to end car manufacturing at Mitsubishi’s plant at Tonsley Park this afternoon.

It is understood a media presentation at the plant this afternoon will reveal what will happen to the final few cars made today.

“Some of the last vehicles off the line will go to special homes,” Mitsubishi Motors Australia Ltd corporate communications manager Lenore Fletcher said yesterday.

“There has been a great deal of interest in the final vehicles of 380 production.”

Today the final checks will be made on the last cars to be built at the southern suburbs car factory, opened 44 years ago under the Chrysler Australia banner.

The closure of the plant - and loss of 930 jobs - was announced early last month by MMAL president and chief executive Robert McEniry.

Tonsley Park makes only the 380, a large sedan, at a time when the swing has been away from large cars. And it could not find a business case to produce any other model.

“This has been a very difficult decision,” Mr McEniry said.

Mitsubishi’s task from now is to make sure motorists realise it remains as an importer and a strong car brand in Australia.

It is arranging full parts warranty and service support for all Mitsubishi products, including the 380, at its 200 dealers across the nation.

A decision is yet to be made on what will happen to the large site at Tonsley Park, although the State Government has said it does not want it to go to housing development but wishes it to stay an industrial precinct, creating permanent jobs.

Forty Mahindra vehicles recently completed the 41st Mahindra Great Escape, an annual non-competitive rally in India started in 1996.

This year the Great Escape crossed the Great Thar Desert.

Now TMI Pacific, Australian distributor of the Mahindra Pik-Up utility, is planning its own version of the Indian trek.

The local event will also be called the Mahindra Great Escape, and will involve dealers, customers, media and other stakeholders

TMI Pacific chief operations officer Claire Tynan took part in the Indian adventure, driving a 4WD Scorpio.

"It was an absolutely exhilarating experience," she said. "The drive was a testament to the capability of the Mahindra vehicles when put to the test, while the well-thought-out track only added to the challenge."

The Scorpio, built on the same platform as the Pik-Up, was among six Mahindra models that took part in the adventure.

The route this year covered sand dunes, rocky patches, steep inclines and drops.

As well as the national Great Escape held in Rajasthan every year, Mahindra also conducts a series of regional Great Escapes in various parts of India.

Tynan said details of the Australian adventure had not yet been confirmed.

In Queensland, Mahindra is sold at Fraser Agricultural in Proserpine and at Sunshine Coast Mahindra.

With fewer selling days this month because of Easter, and some dealers reporting a drop in buyer interest last weekend, March may be the first month to show that the brakes have been applied to car sales when the figures are released at the end of next week.

This year began at the same hectic pace it finished 2007, with January and February both record months and growth still running hot at 7.2 per cent.

“But Easter takes a bit of steam out of it,” said Tony Robinson of fleet risk management company Sureplan.

“March and April will be a litmus test of what impact the interest rate increases have had on private buyers.”

The Westpac-Melbourne Institute measure of consumer sentiment for March fell to its lowest in seven years and the time-to-buy-a-car index slumped by 22.5 per cent — its worst drop in more than a decade.

Mr Robinson said segments already suffering would be hardest hit. “The large car is under siege and there’s a slight drying up on the larger commercial vehicles, especially among fleets.”

The Ford Falcon is in run-out mode ahead of the new FG model going on sale next month, and wagon sales are missing from the Holden Commodore figures as it waits for the VE Sportwagon to join the line-up.

It is a mixed picture. With buyers shunning large sedans for SUVs, the category is running 23 per cent up year-to-date.

Mr Robinson said most importers were reporting a strong start to the year, fleet orders were not drying up and it was too early to be writing off 2008.

“We’re still going to have a strong year, but we’ll see some levelling off or even a marginal drop in sales.”

BMW spokesman Toni Andreevski said Easter was typically quiet “but overall for March we’ll be up on last year.”

KIA Motors, revelling in a 12.7 per cent year-on-year increase in global sales, is set to attack the Australian market in the next year with several new vehicles.

The subsidiary of the same company that owns Hyundai is also revelling in the latest J and D Power Initial Quality Survey, an industry quality report prepared in the US, which measures the number of faults per 100 new vehicles sold.

In 1999, Kia was at the worst end of the scale with 300 faults for every 100 vehicles. It is now running at just better than the industry average with 125 faults for every 100 vehicles while Mazda has taken the bottom spot at the worst end of the scale.

Kia’s new seven-seater Rondo is coming next month and Kia Motors Australia director of sales and marketing, Bill Gillespie, has great hopes the Rondo, at $24,990 and the cheapest seven-seater in Australia, will go great guns for the Korean firm.

The Kia Soul has appeared two years in a row at various shows as a concept vehicle and Gillespie says a production version, looking very much like the concept car but without the 24-inch wheels, is due shortly.

He would not be drawn on exactly what the new vehicle might be called though admitted the Soul concept name was getting a lot of support.

He said the Cerato replacement will be an all-new car, not just a revamp of the current car, and it is due in Australia later this year.

And early in the new year Australia can expect to see a new muscular-looking seven-seat SUV, which has yet to be given a name.

Gillespie predicted a steady Australian market despite interest rate rises but said those at the bottom end of the market would struggle.

“We have 46 brands sold in Australia, a one million vehicle market. The US, a 16 million market, has 43 and Canada, with a 1.6 million vehicle market, has just 23,” he said.

“The top 12 brands in Australia sell 85 per cent of the vehicles. The other 34 brands have to make do with 150,000 vehicles or 15 per cent of the market.”

He predicted new Kia products would fit in much more with the Kia slogan “The Power to Surprise.”

He said with a research and development budget of 5 per cent of turnover, Kia was ahead of the European average of 3-4 per cent and Kia design centres had attracted several well-known German designers, which fit in well with the surprise slogan.

Gillespie predicted that although Kia and Hyundai were owned by the same parent, Kia’s product range was already dissimilar to Hyundai’s and the two Koreans would grow further apart in terms of products.

Meanwhile, the shape and evolution of future Kia vehicles was seen in the KOUP concept at the New York International Auto Show last week.

The KOUP concept is powered by a two-litre Theta II turbocharged with a Gasoline Direct Injection twin-scroll turbocharger producing 216kW of power.