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Martec Automotive Seminar - Melbourne

There were over one hundred attendees at the Martec Automotive Seminar held at the Melbourne Convention Centre on March 2.

The Seminar opened with Amanda Tan, Economist of St George Bank providing a picture of the economic landscape and forecasts for the economy. The Australian economy was expected to enter a significant down turn in 2009, however, was expected to outperform other developed countries.

Brian Savage of the AADA/VACC highlighted the cooperation of distributors and dealer groups in regards to a number of issues including the luxury car tax proposal and financial assistance to dealerships impacted by the withdrawal of GMAC and GE Money from vehicle floorplan financing.

Robert McEniry President and CEO of Mitsubishi Australia outlined the difficult global motor vehicle manufacturing environment. The Automotive Industry globally had excess capacity before the present global financial crisis hit, with excess capacity growing further in 2009. Mitsubishi＊s strategy moving forward was presented with sales forecasts reduced, costs reduced and new ＆green＊ model introductions, including the electric iMiEV reviewed.

Simon Abott, Assistant General Manager of Capital Finance detailed the origins of the present global financial crisis. Capital Finance has absorbed a number of GMAC, GE Money and Ford Credit dealers impacted by the withdrawal of their financing. Australian credit markets remain tight in 2008, however, are less tight than late 2008.

Ian Porter, Journalist of GoAuto Professional highlighted the growing number of emerging technologies and the growing product complexity facing dealerships and customers. Given the economies of scale in traditional engine production, new higher cost engine technologies were expected to take some time to become established. Technologies including dual clutch transmissions, CVT (Continuously Variable Transmission), hybrid and full electric vehicles would arrive in greater numbers in time.

The Automotive landscape is in constant change, all industry participants need to be informed.


The Future

Martec projects new vehicle sales of 850,000 units in 2009 and to 800,000 units in 2010 as sales are impacted by the near universal decline in economic indicators.

Australia has one of the highest population growth rates of any developed country. Japan＊s population is in decline and many Western European countries are impacted by ZPG (Zero Population Growth) and falling populations.

New vehicle sales in Australia are forecast at 1.2 million units after 2012. Long term Australia remains one of the highest potential automotive markets in the developed world.
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