Australian International Motor Show Adapts To Tough Times

Motoring Channel Staff - 3/February/2009

Melbourne, Australia – The current economic slowdown that is casting a pall across almost every nation on the planet has affected all industries, but manufacturing is one of the hardest hit.

Car sales in almost every country are falling significantly (see below) which is hurting the spending power of car marques and this is having a knock on effect on many upcoming motor shows.

With a number of Australian motor shows cancelled, including Brisbane and Adelaide, and talk of international events such as the 2009 Tokyo and Barcelona motor shows being cancelled after dozens of car makers pull out due to the high costs of exhibiting, it's heartening to know that an agreement has been reached to secure the future of the Australian International Motor Show.

"The FCAI is delighted to announce the joint venture with VACC. The new relationship will allow a new direction while maintaining the tradition and heritage of the motor shows in the two capital cities," says Andrew McKellar, chief executive of the FCAI.

As we reported a couple of weeks ago, the Melbourne and Sydney Motor Shows will now be collectively known as the Australian International Motor Show and will run annually but during alternate years in Melbourne and Sydney which has been the desire of many importers such as BMW and Audi.

"The new model is viable and sustainable and takes into account the views of the many vehicle brands who considered the proliferation of motor shows in Australia as being too costly," says Mr McKellar.

Sydney will host the first event in 2010, likely to be mid-year, followed by Melbourne in 2011 and so on. The 75th Melbourne Motor Show held later this month will be the last solo show. The Sydney auto show will not run in 2009.

The VACC's executive director, David Purchase said: "The intention is to have the new events registered as the Australian International Motor Show. This will enhance the stature of the motor shows and assist in attracting participation from overseas."

Global Cars Sales Slump

Europe: The sales figures for the first month of 2009 are rolling in and for some of the biggest European and Asian markets the news is not positive.

In Italy, which had an annual new cars sales of 2.16 million in 2008, new car sales have dropped by one third or 33%, while in Spain the numbers are even worse with a huge 41.6% slump in January sales compared to 2008.

Both Spain and Italy have instigated new government backed loan schemes that approve credit to new car buyers who are trading in older, less efficient vehicles for newer cleaner models, but this doesn't seem to have lifted sales yet.

Europe's most profitable car maker, Porsche, has also reported big falls in new car sales during the August to January period.

It lost around €3 billion in the first half of the financial year, with sales dropping by more than a quarter - some 27.3% which compared to the same period a year prior. 

Asia: As Japan's economy continues its meltdown, figures just out show that new car sales have slumped almost 28% in January compared to the same time last year.

Though not as bad as some of Europe's biggest countries, the almost 28% drop in sales represents the worst January sales figures for the Asian manufacturing powerhouse since 1972. 

One of the hardest hit is Toyota, which is telling investors that domestic revenue will be significantly down.

Japanese car makers rely on their international sales for most of their revenue as sales in their home country have been relatively stagnant for the past few years, which some analysts say has been due to the young adults choosing not to purchase new cars.

Toyota has already decided not to contest the 2009 Australian Rally Championship and it's biggest motorsport commitment, Formula One, could also be under threat as a result of the finacial turmoil caused by money lending institutions and banks who got greedy.

Related Links:
- Adelaide Motor Show Cancelled (2009)
- Melbourne Motor Show: The Cars (2009)
- Australia's Greenest Car (2009)
- Commodore Platform Platform Scaled Back (2009)
- Tokyo Motor Show in Doubt (2009)
- Electric Cars: Detroit Goes Green (2009)
- Ford, GM, Chrysler: Restructured (2009)