IWCMOGTVM Club Supporter
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,797
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Re: First Chinese Cars Entering Australia
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Foton back in the Australian game
http://www.goauto.com.au/mellor/mell...257953001D6AAE
Quote:
Fledgling Gold Coast importer takes on China’s Foton distribution for Australia
25 November 2011
By RON HAMMERTON
A GOLD COAST company today acquired the Australian import rights for the Chinese-made Foton light truck, passenger car and bus range, starting with the full-sized Tunland pick-up in the eastern states in March and continuing with a new-model launch about every six months.
Start-up company FFA Automotive Australia signed on the dotted line with executives of China’s biggest commercial vehicle-maker at the Australian company’s Southport offices this morning, putting Foton’s ambitions for Australia back on track after another independent importer, WMC Group, tore up its memorandum of understanding with Foton in October.
The Foton-WMC arrangement tripped on pricing negotiations for the Tunland ute range, which will be aimed squarely at Japanese rivals including Toyota’s dominant HiLux rather than entry-level Chinese equivalents such as Great Wall Motors and the upcoming ZX Auto franchise.
FFA Automotive – the first national automotive distributor to be based on the Gold Coast – was one of the original three importers in the running for the local Foton distribution rights.
It immediately stepped back into the frame when WMC could not reach a satisfactory agreement with Beijing-based Beiqui Foton Motor – a fully owned subsidiary of one of China’s biggest auto companies, the state-owned Beijing Automotive Industry Holding Company (BAIC), which has joint-ventures with Germany’s Daimler and Korea’s Hyundai.
Negotiations between FFA and Foton have continued for about a month, with pricing on the Tunland range – codenamed P201 – one of the key elements of the final agreement.
FFA dealer relations manager Bob Binks – a long-time motor industry player who worked for both Ford and Nissan before founding a number of major dealerships including Bob Binks Ford in Melbourne and Surfside Auto Group on the Gold Coast – confirmed the deal to GoAuto today, saying the vehicle price was right.
“We are very happy with the deal we have done,” said Mr Binks, who has been an industry consultant since selling out of his dealership interests.
Pricing is expected to start at $30,000 for the base single-cab Tunland powered by a Mitsubishi-sourced 2.4-litre four-cylinder petrol engine, ranging higher for dual-cab and diesel variants, putting it firmly in Japanese-brand one-tonner territory and well beyond the Great Wall range topped by the V200 dual-cab diesel 4x4 ute.
FFA is jointly owned by Queenslanders Grant Phelan and Peter Llewellyn.
Mr Binks said Mr Phelan had strong links with Foton, having worked with the Chinese company to import Foton buses for 15 years.
“That’s what this has grown from,” Mr Binks said.
He said FFA was planning to establish an innovative distribution network for Australia, appointing “master dealers” in each capital city, as FFA was too small to handle the full distribution of Foton vehicles.
These master dealers in turn would appoint their own metropolitan retailers. A system of rural representation was still being discussed, but some areas, such as North Queensland, might also get a master dealer.
Mr Binks said master dealers would be established first in Sydney, Melbourne and Brisbane before the Tunland went on sale in March, and then others would follow from April in Western Australia and South Australia.
The Tunland – a full-sized pick-up about half-way in size between one-tonners such as the Toyota HiLux and American vehicles such as the Ford F-Series and Toyota Tundra – will be offered in a range of body styles, including dual-cab and single-cab, with a choice of 4x4 or 4x2 drivetrains and diesel or petrol engines.
Foton has said it is planning to eventually roll out 10 Tunland variants.
The ute’s premium Cummins ISF 2.8-litre diesel engine – built in a joint-venture plant with Foton next to the ute factory outside Beijing – is said to generate about 120kW of power and 360Nm of torque in its most powerful state of tune (a 90kW version is also available), pitching it directly against the likes of HiLux and Mitsubishi’s Triton.
An unnamed SUV – codenamed U201 – built off the Tunland platform is also expected to land in Australia late next year, while passenger cars – including full electric variants – are due in 2014.
As well, small buses ranging from about nine seats to 25 seats are also on the schedule.
For now, Foton’s Aumark heavy trucks will continue to be imported by Foton Commercial Vehicles Australia, a branch of Western Star Trucks.
“It (FFA) will progressively be a complete franchise, but that will take four or five years to roll out the complete franchise that will include passenger vehicles, as well as electric vehicles,” Mr Binks said.
Australia will wait for Foton’s next-generation passenger vehicles, which - like the Tunland - will be designed for western markets, and pioneer Foton’s electric powertrains that ultimately will spread to commercial vehicles.
FFA hopes to sell 2000 Tunland utes in its first nine months of operation in 2012, starting with an initial batch of 300 vehicles that would arrive in time for the March launch in the three major east coast capitals, where the company envisaged a network of about 15 retail sites.
Mr Binks said the first vehicles for Australian Design Rule (ADR) compliance checks had already come off the line in China and were on their way to Australia.
As GoAuto reported in June, Foton aims to use Australia as a testing ground for the Tunland ahead of its planned roll-out in North America.
Mr Binks said the Tunland name would be used in Australia, as it was in China, in line with the wishes of Foton.
WMC had rejected the name as unsuitable for Australia, and had been aiming to adopt a westernised moniker before the deal fell through.
Sydney-based WMC already imports Chinese Higer buses, and has agreements in place with other Chinese brands JAC and Joylong, with others said to be in the pipeline.
Foton says it has production capacity of a million units a year, with products sold to more than 100 countries through 5000 distributors.
Foton executive deputy general manager Chang Rui recently told The China Daily that while the Tunland would face stiff competition in China from Great Wall Motors, which made up 60 per cent of China's pick-up exports, the positioning would be different.
“Ours is the medium-level in the global market, while the Great Wall is the high-end in the third-tier market,” he said.
“The products are different. Great Wall productions are made in China, but the Tunland is made through efforts between US engine companies, Foton and other foreign partners.”
Alluding to the price negotiation difficulties with WMC, Mr Chang said: “I did receive some complaints from the Australian dealers on the high pricing, but this reflects our strategy that we are targeting the mid- to high-end market, instead of gaining the market by selling cheap.” Tunland sales start in China in January, with exports planned for South Africa, Australia, Chile, Saudi Arabia and Malaysia.
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Daniel
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