Time for a Mazdalanche!

In Nauru, half the cars on the roads are Hilux Surfs – a kind of old 4×4 sold in Japan. In New Zealand, half the cars are Nissan Sunny’s – a kind of car sold in Japan. I have driven both and they have been some of the happiest times of my life.

The prices for these cars are terrific. The  reason why starts far, far away..

Japan has very strong vehicle quality rules. Cars have to be inspected after the first three years, then every two years, and every year after they are ten years old. The inspections are not cheap, running up to $2500. This means Japanese consumers like to get rid of old cars even though they still run well, to buy new cars. The Japanese government wants to encourage that because Mitsubishi, Nissan, Toyota and Suzuki are all Japanese.

Japan ends up with a lot of used cars and exports them very cheaply.

Japan drives on the left, so there are not too many markets they can sell second-hand cars to. NZ and Nauru – both countries without car manufacturing – snap them up.

But, unlike a bunch of other smart countries, Australia doesn’t permit the import of normal second-hand Japanese cars!

Now we are losing Ford, Holden and Toyota, we no longer need this consumer-hurting import limitation. It is time to take advantage of Japan’s crazy policy. 

For comparison. Here’s some options from the Australian website carsales.com.au that are indicative of price range for a 2007 Maxda CX-7

Screen Shot 2014-02-22 at 9.28.37 pm

Here are the results from japan-partner.com.

Screen Shot 2014-02-22 at 9.27.58 pm

Big savings. Thousands per car.  Shipping costs can be very reasonable, in the region of $2000.

As our car industry fades into nothingness, this can be our compensation.

The Productivity Commission’s recent report on the car industry recommended getting rid of the limits on importing Japanese cars, so it’s a possibility it could happen soon.

The only reason to act cool on the issue is that I bet DFAT would like it too as a handy bargaining chip.

The Japanese government would probably be delighted if we started bidding up the prices of this category of export. All those Japanese consumers would find their second hand cars were worth a bit more. Perhaps we could even use it to encourage them to cut out their “scientific” whaling program?

How Fairfax helped kill car-making.

Toyota is going. And yet the government is barely sweating. They stand at the dockside, waving their hanky, thinking of something else. Not even a crocodile tear in their eye.

This, in an environment of rising unemployment, is politically shocking. How has it happened the populace apparently no longer wants this key industry saved? The answer is not that the Australian people have suddenly swallowed an Economics 101 textbook. It is just in the “national mood.”

And that mood is still shaped by the media…

One could trace the beginning of the end of support for Australian car manufacturing to 2011. The economics editor of the Australian newspaper was a man called Michael Stutchbury. A man with ambition. Fiery and with salt and pepper sideburns, “Stutch” put his hand up for a new job that was going across town.

He wanted to be handed the editorship of the Australian Financial Review – Australia’s only business daily. A paper loved and feared in decision-making circles. 

The top echelons of Fairfax considered the CV of the man. He was a man of strong views, sure, but the Fin Review had floundered under middle-of-the-road helmsmanship, so perhaps that was not just desirable, but necessary.

 

Image
Source: The Australian

Stutch arrived at the Fin amid a surge of excitement, armed with a two-word slogan: Agenda-Setting.

“I think we can turn it into a growth story by reinvigorating the journalism, concentrating on news breaking, going back to setting the agenda,” he told ABC business reporter Ticky Fullerton at the time of his appointment. The move to agenda-setting came with an advertising campaign too, that made the odd choice of appropriating some classic communist propaganda tropes.

The newspaper proceeded to take a far sterner line in deciding what was and wasn’t news. But it went a step further than that. The paper made some things into big news. 

Stutch’s sharp news-sense, formed at the Fin Review but forged in the right-wing foundries of The Australian, combined with his purist views of the government’s role in the economy, meant the car industry was a prime topic. I personally spent hours camped out front of Toyota’s Altona factory getting soundbites from workers, hours trawling through the car statistics to find an Australian manufacturing angle, hours looking into the history of government assistance to the industry.

I even interviewed motor-racing legend Dick Johnson about the possible end of the Falcon, a story idea I was told came from the very top. (Johnson said: “Australians have an affinity with a front-engine, rear-drive car [and] a medium to large body size . . . But it may only be my generation that sees that.” The paper printed the story and a picture.)

Anything with a car industry assistance angle was easy to get past the mid-level editors and into the paper, because they knew Stutch would love it. So he didn’t have to personally demand every single story that the Fin published. The car industry was hot, and everyone knew it.

Image
The Melbourne Bureau, 2013.

Not long after Stutch got the job, Tony Abbott announced cuts to car subsidies. 

Would the government keep this risky promise? The issue remained firmly on the agenda. I wrote at least ten stories on the topic, (1 2 3 4 5 6 7 8 9 10) and I was perhaps only the fourth reporter in line to write car stories, behind Mark SkulleyPeter Roberts, and Lucille Keen

(Three of the four reporters listed above no longer work at the Fin.)

But once set, the agenda doesn’t stay inside just one newspaper. If the Fin is in a lather about the car industry, then the Age gets a bit of froth on it too, as do the Sydney Morning Herald, the Herald Sun and the Advertiser. The tone of coverage nationwide took a subtle turn.

Now, newspapers can push barrows without getting anywhere. What gave the AFR barrowload so much momentum was the political gradient. Labor was clearly sliding out by 2013, and the Coalition was ascendent.

Stutch’s steadfast campaign was given legs because it coincided with a Productivity Commission report and a bright new political day (not to mention political capital in the shape of dozens of one-term backbenchers).

Newspaper editors are powerful people. The Abbott Government is emboldened to make the decisions it is making – decisions its predecessors were unwilling or unable to make – because the prevailing climate is one in which they can expect some media support for the decision. Neither national paper is going to crush the government for cutting the funding which kept car manufacturing here.

I can’t help wondering how Stutch feels today, with the end of Australian automotive manufacturing a reality.

Perhaps I am naive but I can’t quite imagine champagne corks popping. I prefer to imagine him slightly frightened. As in, “Jeez, I can’t believe I just did that!” Like the start of a superhero movie. In that context, here’s a quote I think worth remembering for newspapers editors everywhere: “With great power, comes great responsibility.” 

DETROITELAIDE?

Australia’s car industry is leaving the party. Ford has said its goodbyes, Holden hasn’t announced it as such but it has put on its jacket and is looking for its keys. Continue reading DETROITELAIDE?