Aurion will stir it up

Competition in the large-car market will be reignited later in the year when Toyota rolls out its new Aurion, a rival for the all-new Holden Commodore VE and existing Ford Falcon, Nissan Maxima and Mitsubishi 380.

Sales in the mainstream segment have fallen away - the cost of fuel is biting into wallets, and carmakers, apart from Mitsubishi with the new 380, are existing on facelifted and outgoing models.

But they expect the new sedans from Toyota (a new Camry is also due around August) and Holden to create renewed interest in the segment, despite sales evidence showing buyers want more fuel-efficient vehicles.

Holden and Ford are both eyeing the front-drive Aurion for the same reasons: it will come with a 3.5-litre V6 engine producing around 200kW (270bhp) and 390Nm of torque, output that has pretty much exclusively belonged to the rear-drive V6 and straight-six Australian cars.

A Toyota Australia engineer - where the Aurion will be built - said it would have more power than BF Falcon, and, possibly, VE Commodore: "We'll be 190-plus - that's all we are saying at this stage, because that's a pretty critical issue in the large-six market and it's a very competitive area."

The Aurion rides on the same platform and wheelbase as the upcoming Camry. It will be well equipped, with its safety systems including knee airbags. The top-range model will add stability control, curtain airbags, LED lights and reclining rear seats.

The engine is a Lexus-sourced unit and is expected to be mated to a six-speed gearbox. There is also talk of a Sportivo version, like the Camry. It will use a supercharged version of the 3.5-litre V6, with suitable modifications to suspension, brakes and tyres.

The Aurion, which will replace the slow-selling Avalon, continues Toyota's liking of ancient Greek or Latin names. Its hybrid Prius means "to go before". Aurion means a "fresh breeze".

Toyota Australia's Melbourne plant will also export the Aurion to Asia and the Middle East.

It is Asia which will become the new powerhouse for the global motor industry, says Toyota NZ managing director Bob Field.

He said with the exception of Japan, Asia had a large, low-cost labour pool and rapidly expanding home markets. He predicted the global motor industry would face more change in the next 10 years than in any other decade.

"There will be considerable restructuring and as long as governments break down artificial protection barriers for local industry the changes should be good for the customer and for the world's climate," he said.

"The four key drivers for change will be the inexorable pressure on fossil-fuel availability, fuel costs, the urgent need to eliminate carbon emissions and the rapid expansion of the global vehicle fleet.

"Key vehicle design issues feeding into these are the continued expansion and refinement of hybrid technology, a more urgent focus on hydrogen options, new and lighter materials for vehicle bodies, and improvements in space efficiency so that more people and cargo can be carried within the same road print of the vehicle."

He said the global success of Toyota was based on being customer-driven in its products, services, marketing, and pricing, and having customers served by enthusiastic franchise team members.

"It seems that the Ford Motor Company's Bill Ford has finally understood this issue and after he has finished slashing his workforce and trimming overheads, he plans to re-invigorate the customer appeal of Ford products.

"Like Toyota, he said that saving the planet from the motor industry is now the biggest priority of them all, and will pour billions into eco-friendly factories and cars," said Field.

"And, like Toyota, Ford will dramatically increase production of hybrids, promising to build 250,000 a year by 2010. Toyota will be building four times that number by then."

Field said the Toyota Motor Corporation's share price had risen by 50 per cent last year while the value of other leading car companies had crashed.

Toyota's success both internationally and in New Zealand - where it has been market leader for the last 18 years - was based on long-term decisions made 10 years ago.

These were the same as those announced by Bill Ford in 2005.

"Ford, and most other companies except Honda, which also makes hybrid petrol/electric vehicles, have taken 10 years to catch up with Toyota's thinking - and that may prove to be 10 years that the planet could not afford to lose."

Field said European vehicles had until now been insulated from the troubles of US brands because Europe had not yet been fully exposed to global competition.

"But there are plenty of ominous signs," he said.

"Low rates of profitability, deteriorating product quality, rising costs and low customer satisfaction have sounded warning bells in Europe."

He said the cost structures in Western Europe were under the same upward pressures as the US, with an aging population and rising labour costs.

"Accordingly, we do not see New Zealand importing more European vehicles in the long term."