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10-02-2009, 11:00 PM | #1 | ||
FF.Com.Au Hardcore
Join Date: May 2007
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Its something.
HSV, FPV curb production as sales go off the boil By DAVID HASSALL 10 February 2009 http://www.goauto.com.au/mellor/mell...257559001513F8 HOLDEN Special Vehicles and Ford Performance Vehicles have not been immune from the global downturn, being forced to reduce their workforces and cut production, despite recording near-record sales in 2008. The two local but foreign-owned hot-car outfits say they are maintaining their research and development spending levels in the face of declining fortunes, but both are reviewing future model programs outside of their mainstream offerings. FPV general manager Rod Barrett told GoAuto that the slow-selling Territory-based FX6 would be reviewed in coming months, ahead of the coming facelift, while the much talked-about GTHO revival had been further delayed. And HSV managing director Phil Harding said that while side projects had been put on hold, work continued on LPG engineering. He said a decision would be made by Easter on a business case for diesel-engined models, which are considered vital to develop exports to European markets. HSV initiated a rare retail action late last year, with prices slashed by between $6000 and $14,000 to clear an unexpected stockpile, which dramatically boosted sales in December and cut its dealer stocks from a high of 1200 cars to fewer than 600. The company did not build any cars in January (apart from a handful of W427s) and its daily build rate for at least the next few months will be half that of only six months ago. FPV has also cut production by about half, but did not need to discount its cars to reduce stock levels, which have been pegged back from 650 cars to fewer than 350. One unexpected result of HSV’s big sales drive in December was a January hangover that led to a rare sales victory by FPV, with 124 sales versus 117 for the first month of the year. But HSV remains the special-vehicle king in Australia, selling 4778 vehicles in 2008 (444 fewer than the previous year, but still 724 ahead of the brand’s next-best year) while FPV racked up 2035 sales, which is only 92 units fewer than the previous year and 109 down on its record year in 2006. Neither company is crowing about sales, though, as they face difficult trading conditions and reflect on having to reduce their respective workforces. While FPV has been forced to lay-off 12 of its 70 workers, HSV has reduced its staff by 15 people (out of 200) and told all its contract workers – which accounted for 60 per cent of its production workforce only six months ago – there will be no work for them until at least June. HSV resumed production last week after an extended Christmas break and is now building only 15-20 cars a day (about 50 per cent of capacity) while FPV is producing 10 cars a day (against a capacity of 18). Only six months ago, both companies were running at full capacity to meet record demand. Both Mr Barrett and Mr Harding were reluctant to predict where the market would go in 2009. They hoped that the niche nature of their segment would help them in the drastically contracting overall market, but admit they would be ecstatic to get close to their 2008 results. HSV sold 1044 ClubSport R8s last year, a record 956 Maloo utes, 906 GTS sedans, 359 Senator Signatures, 267 Grange, 134 Vauxhall-built VXRs, 64 Tourer wagons and 90 W427s. FPV’s 2008 sales total consisted of 697 GTs, 174 GTPs, 81 GTEs, 537 F6 sedans, 154 F6 Utes, and 208 Pursuit and Super Pursuit utes combined. Mr Barrett admitted that the numbers for the Territory-based F6X – 178 sales, well short of the 600 projected when the company’s first non-Falcon product was launched 12 months ago – made it hard to justify the investment required to do a facelift of the stand-alone vehicle. “We haven’t sold as many of the F6X as we would have liked,” said Mr Barrett from his Campbellfield office. Although he cautiously said the SUV will continue, he added that “we’ll have to manage our expectations on what it does for us” and admitted that the program will be reviewed when the donor Territory is facelifted in about June. “Mid-year I think we’d have another look at where we go with it. I would like to think (sales) would improve, but it is the second most expensive car in our fleet, so it may be the one that takes the brunt more than anything else. “This year FPV is about prioritising and consolidating. And I would not be the only person in the automotive industry saying those two words.” Mr Barrett said that a revival of the GTHO nameplate after more than three decades has not progressed past his own desk and was definitely on the backburner. “It wouldn’t be as close as it was 18 months ago when you first spoke to me. 18 months ago, when I first started (at FPV), things were different. There were so many other things that came in front of it – we had to get the FG up and running, there were eight cars there, the F6X … “The GTHO was always, and still is, a long-term project. I’d still love to do it (but) it’s a young kid’s dream – and he turns 49 this year.” Left: HSV ClubSport R8 While FPV is still planning to produce a Focus-based model when local production of the small car begins in 2011, this year it will concentrate on its existing models and weathering the automotive storm. “We are very niche,” said Mr Barrett of his optimism selling premium high-performance large cars in the tough current environment. “It might be tough to sell a six-cylinder Commodore, for example, but there’s still that niche out there of people wanting to buy a high-performance car, and petrol’s not expensive any more… “Don’t get me wrong, it was a tough year, but we didn’t give our cars away at the end of the year,” he said in reference to HSV’s big end-of-year sale. After HSV sales dropped from an average 450 a month to 250 when the government increased the luxury car tax, HSV slashed prices across its full range (apart from the new Tourer wagon) and consequently sold a massive 853 cars in December. “Other manufacturers that are in close competition with us have been doing some hefty, hefty, hefty discounts – and we’re not going to compete with them,” said Mr Barrett. “We’ve got a good strategy of producing a set number of cars and we’ll continue to do that. We don’t want to flood the market. “When you do that sort of thing (discounting), you’re not only flooding the market … what does it do (to resale value)? What does it do also to your customer loyalty? It must be killing residuals. We’re trying to protect that. “The way the world is at the moment, cars go down in value, particularly high-performance cars and luxury cars, but I’m not going to go out there ‘plagiarising’ the market sort of thing – that’s just crazy. “I can’t tell a dealer what to sell a car at, I can only give recommended retail prices, but what we can do is not offer massive discounts. We’ve just reduced our production down a fair bit, so we’re not flooding the market with cars that can’t be sold. “We only build to order from dealers – they order it, we build it, we send it out and they put it on the lot.” Of course, HSV defends its retail action strategy, saying it was a necessary short-term move to clear dealer stocks that had risen unexpectedly because of the post-LCT downturn. Mr Harding conceded that customers who bought cars at full retail may not be happy, but said it was no different to the many other manufacturers that have reduced prices to clear stock. “We don’t need telling what’s good for our brand and what’s not,” said Mr Harding of his rival. “I think the short, sharp treatment was the best one. I think if you run bonuses for too long then you end up with an accepted price point that you can never get away from. We don’t often do (sales), but you’ve got to do it at times and then you’ve got to pull away from it, which is what we’ve done. “The day they changed the luxury car tax was a day that sales started to soften (but) I can’t stop the (production) pipeline in a day. “You get that (LCT) changing, you get people talking about a financial crisis – compared to the UK and Europe, there isn’t one here, but everyone thinks there is – talk of credit squeezes, talk of dealers who have to refinance their businesses because of GMAC and GE pulling out, all of that created a condition where we had to respond, so the December campaign was really to correct that. “We’ve got 600 (cars in stock) at the beginning of the year. With the actions we’ve taken in January and February, we’ll be down to 500. We chose not to build any cars in January just to get the stock levels under control. We’re getting dealers now screaming at us because they haven’t got enough cars, so it’s fixed. “We have planned the year in four quarters. We’re going to make very few cars in the first quarter and then slowly take each quarter as it comes so that we can properly manage supply. “If we get a good (sales) number this year, fine, but I’m not shooting for big numbers. I’m shooting to keep the supply and demand under control – whatever sales are will be a result of that. “In line with that, we’ve battened down the hatches. We’ve taken more than 15 per cent out of our overheads in the last couple of months. From August to December last year we got rid of 15 heads. “It’s easy with record sales for companies to become fat, dumb and happy, and you’ve always got to resist that temptation. HSV has been very miserly when it comes to spending money internally and hiring staff. We’ve always been a fairly tight ship, but there’s always places where you can find it. “We know there’s demand for the product, but not to the same degree as our launch year (for the VE-based range in 2007) because the market conditions aren’t right yet. “I would be ecstatic if I met 2008 figures. I’m capable of making 2008 figures because, if the demand is there, we can build more cars (but) this business will survive on a much smaller volume of cars if we control our costs. “You would be extremely rich if you could predict what was going to happen in the second half of this year. What we are trying to do is not supply one more car than necessary, monitor supply and demand slowly, keep that stock control under control so it’s around 400-600 cars. “If the market picks up, it picks up. But does anyone else know what it is? I don’t think they do. It’s almost impossible. For 20 years HSV has pretty well known what it’s going to do and how it’s going to grow, but this is one of those years where we have to measure our business against what is happening in the marketplace more than ever before.” HSV’s export business has also been affected by the global recession, with New Zealand down 21.2 per cent to 490 cars last year and the UK down 12.6 per cent to 257. Mr Harding said the UK market is “absolutely shot (because) they’ve had stuff go wrong that Australia hasn’t had – they’ve had banks fall over”. Although Middle East sales rose some 46.0 per cent in 2008 to 219 units, he said that the recession was also starting to have the same impact there. Plans to expand sales in Europe are dependent on producing diesel variants because they account for three-quarters of sales across the Continent and the growing new market of Russia. “It may never happen – it’s a business decision we’ve yet to take,” said Mr Harding. “We’ll probably make a decision on that by Easter. “HSV is very product-oriented and I believe in these times if you do anything to skimp on your R&D then you’re not preparing yourself right for the future. Our engineering (department) is extremely busy and, while I’m pulling back the pennies on everything in the business, we’re not skimping there. “Diesel is a massive investment, so it’s a big swallow-hard technology decision with a lot of finance in it, and that’s difficult at the moment with the way the market is trending. It’s a tough call. That’s why we’re not making it today. “Even LPG is a tough one. For our relatively small company, completing that will demand $1 million of investment. Is that going to work for us? I take the view that, even if it didn’t work for you this year, it is one of those things that you are going to need in the cupboard to pull out in two or three years’ time. |
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10-02-2009, 11:09 PM | #2 | ||
FF.Com.Au Hardcore
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Its not much to brag about i know.
But i found it a good article to read. |
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12-02-2009, 01:08 PM | #3 | |||
777
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Thanks for this info!!
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10-02-2009, 11:47 PM | #4 | |||
TBA Customs
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Umm is it just me that was seeing the FG GT right at the front of Ford dealer lots with $55K big a$$ed stickers on the front windscreens??? Maybe I need to get my big a$$ed sticker reading glasses checked, must have some dust on them causing my confusion
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11-02-2009, 12:15 AM | #5 | |||
Ich bin ein auslander
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The article did say that they (FPV) are not offering big discounts to clear stocks, but they can not control what the dealers do, only set a RRP. So he is saying it is not them, just the dealers. I wonder.
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11-02-2009, 12:28 AM | #6 | |||
Regular Member
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A guy I know works as a new car manager for a Holden/HSV dealership and he was crying in December about the prices that Holden and HSV had set. He did sell heaps of cars though. Some dealers would have been (and may still be) holding a lot of stock and some would not. If the guys who had the stock needed the cash flow then they would have discounted the cars. If FPV had set the pricing the discount would have been uniform across all dealers, but they then run the risk of bastardising their product just like HSV did. Guess it worked for HSV, for December anyway. |
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11-02-2009, 08:20 AM | #7 | ||
If it ain't broke........
Join Date: Dec 2007
Location: Sunshine Coast Qld
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He is dead right about the re sale value thou. I have read in several places that the HSV vehicles are one of the most depreciating brands on the market..........
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11-02-2009, 10:01 AM | #8 | ||
Flairs - Truckers Delight
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Location: Brisbane Northside Likes: Opposite Lock
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right after XT falcons
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Current: Silhouette Black 2007 SY Ford Territory TX RWD 7-seater "Black Banger"
2006-2016: Regency Red 2000 AUII Ford Falcon Forte Automatic Sedan Tickford LPG "Millennium Falcon" |
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11-02-2009, 10:54 AM | #9 | ||
Not of the Sooty variety!
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I still see red when Rod B talks about the F6X. A great SUV and had they put more (any) effort into making it look like a FPV vehicle, then I believe they would have sold significantly more, even with the original RRP. Hell I was down for one prior to release and pulled out because it looked no different to the TT
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"To be afraid is to be alive - to act against that fear is to be a person of courage." Current
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11-02-2009, 11:05 AM | #10 | |||
FF.Com.Au Hardcore
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On a serious note the F6X didnt get any more that what it did because FPV only had 1 mill to play with for design and R+D....
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335 S/C GT: The new KING of Australian made performance cars.. |
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11-02-2009, 01:29 PM | #11 | |||
Not of the Sooty variety!
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"To be afraid is to be alive - to act against that fear is to be a person of courage." Current
The Toy: 2002 AUIII TS50 The Daily and Tow Vehicle: 2016 VW Amarok Last edited by Grunter; 11-02-2009 at 01:37 PM. |
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11-02-2009, 01:27 PM | #12 | |||
FF.Com.Au Hardcore
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A significant percentage of FPV buyers seem to be more interested in looks and appearance than performance, safety or comfort. F6 is faster and lighter than GT at same cost but GT sells more. GT-P and GT-E are superior to GT but GT sells more. F6X is quite superior to TT but F6X sells slowly. It has to be emotion as there is very little logic. I wonder if this is why there has never been a FPV GTHO. The high end products despite extra performance, better brakes, better handling, better interior are all constantly outsold by "basic GT with stripes and bonnet decal". Developing and releasing a $100k++ GTHO only to find it sells like the W427 would not be good for FPV at all. |
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11-02-2009, 01:31 PM | #13 | |||
Not of the Sooty variety!
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"To be afraid is to be alive - to act against that fear is to be a person of courage." Current
The Toy: 2002 AUIII TS50 The Daily and Tow Vehicle: 2016 VW Amarok |
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11-02-2009, 01:37 PM | #14 | |||
FF.Com.Au Hardcore
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Quote:
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335 S/C GT: The new KING of Australian made performance cars.. |
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11-02-2009, 01:53 PM | #15 | ||||
Not of the Sooty variety!
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To expand, the Territory is no sports car, but there is a market for "performance" SUV variants, and FPV have done well in the functional performance (in relative terms) on the F6X. Where they have missed the mark, is the presentation of that performance. I'd be very surprised if a XT falcon with the F6 drive train, white seats and painted mirrors, priced at the F6 RRP, would sell as well as the F6. The below is quoted from FPV's website on their philosophy and I'll highlight the bit they missed with the F6X. Quote:
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"To be afraid is to be alive - to act against that fear is to be a person of courage." Current
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11-02-2009, 01:35 PM | #16 | ||
TBA Customs
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You may well be surprised at just how many deposits there already are on the HO should it ever be released, a good friend of ours who manages one of the Local Ford dealers outlets has told me of around a dozen hefty deposits already layed down.
As for Ford "officially" discounting new car stock, mate ford haven't done anything "officially" since 1972, or is that 73 when they "officially" canned the P4HO.
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11-02-2009, 01:57 PM | #17 | |||
AWD Assassin
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It's simple really.......the GT has and probably always will be the aspirational product in the FORD / FPV line up. More people want the GT it seems and that has been proven time and time again............for whatever reason. As soon as FPV wake up to this and start investing HEAVILY in the GT.........and make it a product that is well beyond the F6 and rival HSV products in form and function.........the better off they will be........AND they will be one possible step closer to building a serious modern day version of the GTHO. It's like the Apple iPod......there are plenty of products out there with more features, and are cheaper etc.........BUT the humble iPod....even without an AM / FM radio feature.......outsells them all. It is the aspirational product to own.........the one that most people want to say they have. Bugatti Veyron may very well be the fastest , quickest most ballistic car ever made, but I still reckon I'd take an F40 or a ZONDA over it........personal choice. |
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11-02-2009, 01:57 PM | #18 | |||||
TBA Customs
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Give it time and people will figure it out, it might be too late once the bean counters kill it off and production stops at the 400kw version (please god let it come, the 400 that is), but this will only add to the status making it an even more highly desirable car than it currently is. Quote:
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Most people looking to spend this kind of money on an SUV will always have more to choose from and that's why you see so many Euro SUVs on the road compared to even the Jap models these days. I mean the 200 series V8 twin turbo is over $120K I think it was, almost the same as a Range Rover Sport, give me the Rangey any day over a 200, that and the 200 looks too much like it's Rav4/Kluger siblings now. In the price range of most of these cars people have never been more spoilt for choice, and it shows, just take a look in the local car park of most suburban shopping centres.
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11-02-2009, 03:06 PM | #19 | |||
FG GT 5.4 w/ additions!
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Heres my reasons why I went for a GT over the GT-P or F6. GT-P - I will be driving this on public roads every day, a "Daily Driver" + a family car, as awesome and comfy as the GT-P seats were, I did not think them practical for daily driving, the higher bolsters were IMHO, just a pain in the butt for getting in and out of, day in, day out, several time per day. Plus, IMHO the taller head rests look like something of the movie coneheads. The 6/4 POT brembos. Not needed for a street vehicle, The 4/1 Brembos/PBRs are more than enough. I could not justify the extra 10K cost for either of these differences. F6 - Well I get asked this question all the time " why a GT when an F6 is much quicker". Well, my answer to that is, people seem to be quick to forget what GT actually stands for. I personally did not want a balls to the wall performance car with a boosted 6 cyl engine. I wanted a V8, I have driven V8's for 15 yrs. yeah, yeah, F6 is is more powerful, lighter, faster, etc,etc. However, at the end of the day, It was just NOT what I wanted. Some do, some don't, not everyone is the same. The F6 is an awesome car, a bloody awesome car, but just not for me. The GT-P again an awesome car, but just not for me, not what I wanted. Now, Why did I get a GT over another XR8, Well in MY opinion it is more comfortable, it handles better, looks better and goes better. It was my choice, I looked at and drove the others, but at the end of the day the GT was what I wanted, I'm more than happy with it, I love it. : |
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11-02-2009, 03:26 PM | #20 | |||
FF.Com.Au Hardcore
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This whole debate started off as a FPV GTHO/F6X/whatever dissection and I put forward that just because there are technically superior models does not mean that they will automatically sell. (please note that there is more to the term "technically superior" than 0-400m times). If FPV are to release a GTHO then it will have the be bigger faster better gooder then everything else and will subsequently cost lots more. FPV buyers now have a 6 year history of NOT buying the bigger faster better gooder models and sticking with the basic GT. This is a FACT. So I believe that FPV are unsure whether the GTHO, if made, will sell enough to make it profitable and whether this car will sell to those who would not have otherwise bought another FPV product and so it sits in a box in the corner next to the "square tuit". |
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11-02-2009, 03:33 PM | #21 | |||
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11-02-2009, 03:39 PM | #22 | |||
AWD Assassin
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And again.....like so often......you've missed the point....... A GTHO will / should be based on a GT.........If they make a GTHO.........that is bigger faster better gooder as you so eloquently put...........IT WILL SELL. You seem to be hell bent on the fact that because the F6 is a poorer seller than the GT that the sky is falling down and therefore a GTHO cannot sell. As I stated earlier..........the majority of FPV buyers seem to buy the GT because it is still seen as the aspirational model.......for now. I stated in another thread that I have a gut feel that the FORD V8 program really only has a 5 year lifespan anyways..............so after that..........who knows. I wonder how many F6HO's would sell if FPV decided to make a penultimate model based on the F6 ?????.............they'd probably go bust. |
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11-02-2009, 03:16 PM | #23 | |||
TBA Customs
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Just to refresh your memory 4man, this is what the debate was over, not about performance, a TT ghia is around the high 50's early 60's so just outside the Euro models I suggested. This is why the TT will sell before the euros, if price is the main factor then most will buy this, but when an F6X as stated by the poster looks visually about the same as it's $15K cheaper sibling how could anyone possibly justify buying it unless they are looking solely at performance. Which correct me if I'm wrong but this was not mentioned as any kind of consideration.
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11-02-2009, 03:19 PM | #24 | |||
FF.Com.Au Hardcore
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The F6X interior is allot different to the TTG though... You wouldn't bother even looking at euro SUV @75K if performance wasn't a consideration and just buy a std non turbo Terri Ghia for 50K.
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335 S/C GT: The new KING of Australian made performance cars.. |
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11-02-2009, 03:24 PM | #25 | ||||
TBA Customs
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Most go by looks before anything else, if you don't like the aesthetics of a car, be it body or interior then you most likely won't buy it, regardless what it is. If it feels uncomfortable, you won't buy it, if it doesn't really do what you need you may buy it but you will hate it. Emotion is the biggest factor in any purchase, be it a car or a condom Quote:
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Last edited by XRQTR; 11-02-2009 at 03:33 PM. |
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11-02-2009, 11:39 AM | #26 | ||
Bear with a sore head
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We still bought an F6X and I think for the 1 million they had, they made it go a long way. Imagine if they had 2M? I'm sure they could have done some different bumpers and wheels with that money, as that's all it really needed. On the Mechanical side, which is more important than the visual side, they hit the bulls eye IMO. That's how we justified buying it. I do hope they make an F6X model out of the facelifted Territory and make it look like it should have from the start. An F6X 310 Tezz with 20" and a nice Bodykit would be an awesome car!
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11-02-2009, 11:44 AM | #27 | |||
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If it gets a kit i hope its subtle.. because at the end of the day its still a SUV, not a sedan...
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335 S/C GT: The new KING of Australian made performance cars.. |
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11-02-2009, 12:07 PM | #28 | ||
Banned
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Well at least there sales are still going in the right direction i suppose. Just have to wait and see what happens in a few months time..
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11-02-2009, 12:42 PM | #29 | ||
FG GT 5.4 w/ additions!
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woo hoo, I was one of those January sales numbers.
1x FG GT Manual, in Vixen, with Leather, no stripes is now parked in the drive : As for the discounting, it varies, I was chasing a good deal on a 2008 plate GT in Manual. I spoke with about 5-6 different dealers some discounted if they had floor stock or demos with some k's on them. Others with brand new un reg floor stock they needed a beating with a cricket bat just to get $1k off Full RRP. What really surprised me was the real lack of interest from most of them to actually want to sell a car. :togo: One interesting thing to note from what I found was that as I wanted manual and Leather, I was looking at between 2-5k more than if I was to settle on a cloth or leather trimmed auto. Auto's seemed to be a dime a dozen, so pricing on those fairly competitive, Manuals not. |
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11-02-2009, 01:44 PM | #30 | |||
TBA Customs
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Mate they are all trying to make as much as they can incase they lose there job, that's the biggest part of the problem, if they knocked off a couple of grand straight off the bat especially on FPV's they'd sell them quicker. But, it's easier to tell the boss that no ones buying due to the "financial crisis" rather than have to beg him to do the price so you can get another sale on the board. Most salesman, not all as I'm sure there is at least one out their, somwhere, are driven by greed, to succeed, to prosper, to make the highest monthly $$$ gross figure for total profit, not total sales. You can make 100 sales at a profit of $100 each, a whole $10K for the month, or you can hold off for the cashed up fools that will still pay full retail as well as get the rust package and interior package (twice just in case), sell two FPV's and make around 3 times that figure. Even though they will be, ironically, (not) selling themselves out of a job they just don't get it.
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