Audi boycotts Sydney show

THREE of Australia’s most popular luxury brands will not have a presence at this October’s Australian International Motor Show (AIMS) in Sydney, following confirmation last week from Audi Australia that, for the first time, the German giant will not attend the nation’s largest motor show.

Audi’s withdrawal follows BMW’s decision in March to boycott the Sydney show, following the lead of Mercedes-Benz, which did not attend this year’s Melbourne show and will not be present in Sydney either.

The news comes as ongoing discussions take place between the organiser of the Sydney show, the Federal Chamber of Automotive Industries (FCAI), and the Melbourne International Motor Show organiser, the Victorian Automobile Chamber of Commerce (VACC).

A number of car company representatives have told GoAuto this week that the FCAI chief executive Andrew McKellar and VACC executive director David Purchase had arranged to meet to discuss the long-anticipated possibility of alternating annual motor shows between Melbourne and Sydney in the same way that Germany’s Frankfurt show and France’s Paris show alternate.

Japan’s Tokyo motor show is also held every two years.

The FCAI and AIMS event organisers have denied that a meeting has been scheduled with the VACC to discuss the future of Australia’s two biggest motor shows.

However, a VACC source has told GoAuto that Mr McKellar and Mr Purchase intend to meet soon – not to discuss alternating shows, which is considered anathema to both organisations, but to address the issue of certain car companies (with less than a 10 per cent share of the new-vehicle market) attempting to dictate terms.

The top three German makers in Australia are all lobbying for such an alternating arrangement on the basis of cost (a single motor show exhibit can cost anywhere between $300,000 and $1 million), but say the retail focus of smaller shows like Brisbane, Perth and Adelaide actually cover their own costs.

However, many volume-selling brands, including the three Australian manufacturers in Toyota, Holden and Ford, say they value the opportunity to show their wares in the major capital cities every year.

Audi’s decision not to attend AIMS comes as an even bigger surprise than that of Mercedes-Benz, which was reported to have spent more than $4 million on an exclusive AMG customer event at Mount Panorama in March, and BMW, which will adopt the policy of its Mini brand by spending its marketing money elsewhere.

Unlike those brands, there is no evidence of substitutional spending by Audi, which has aspirations of emulating its two stronger-selling German rivals and has traditionally had a robust motor show presence, led by high-profile managing director Joerg Hofmann.

Industry sources told GoAuto all the major car-makers are “very aware of the snowball effect” that could develop following the exodus of brands like Benz, BMW and Audi, but given the FCAI has a contract with the Sydney Exhibition Centre there is no chance of this year’s event not going ahead.

GoAuto has been told there is a perception among many car companies that they are being “held to ransom” by the FCAI because they fear that pulling out of Sydney will be followed by penalties including limited or low-profile exhibition space the following year, and/or a reduced priority in the media presentation roster.

Applications have not yet closed for the 2008 AIMS but apart from the top three German luxury makes, Porsche, Jaguar, Land Rover, Bentley, Alfa Romeo, Fiat, Proton and SsangYong will not be present.

Citroen’s participation depends upon the local availability of its new C5, but confirmed 2008 AIMS exhibitors include Toyota, Holden, HSV, Hummer, Saab, Ford, FPV, Mitsubishi, Lexus, Ferrari, Maserati, Volkswagen, Chrysler, Jeep, Dodge, Peugeot, Mazda, Suzuki, Nissan, Subaru, Hyundai, Honda, Lotus and Volvo.

At this stage the list of unconfirmed brands includes Aston Martin, Bugatti, Lamborghini, Rolls-Royce and Kia.

Audi’s general manager corporate communications Anna Burgdorf stressed the company’s decision not to be present at this year’s AIMS was not a Melbourne versus Sydney issue, but “We do believe super-strongly in one show a year and we’ve been asking for it for quite some time.

“It’s just bad timing for the FCAI that we have to make a stand. We’ve got some really nice cars coming by the end of the year but unfortunately we had to make a difficult decision and it’s taken us some time because there are pros and cons for both (arguments).

“We do support the FCAI, we do support the Sydney motor show, but unfortunately there’s got to be one year where it’s affected and it’s got to be 2008. We had to make the stand at some time and we’ve done it. We’ve done it now.

“Now, it’s quite possible that we will choose Sydney next year as our one show if they can’t reach agreement. We’ll just have to wait and see what direction it goes after the VACC and FCAI have met,” said Ms Burgdorf.

While Sydneysiders won’t get to see Audi’s new RS6 Avant, A3 Cabrio and S3 Sportback at Darling Harbour, BMW fans will also be deprived of first looks of the M3 sedan and M3 convertible due on sale here this year, as well as the stunning M1 Homage concept.

“We won’t be at Sydney, but we will look at each individual show on its merits, based on what new products we have at the time. However, we remain committed to one major annual motor show only,” BMW’s PR and corporate communications manager Toni Andreevski told GoAuto.

Following Audi’s withdrawal last week, the FCAI this week announced a new attraction at this year’s AIMS, dubbed Supercar Central, which aims to “bring together some of the best low-volume hand-crafted exotics the automotive world has to offer”.

“Supercar Central will be a highlight of a very strong Australian motor show in 2008," said FCAI chief executive Andrew McKellar. “The display will provide a unique opportunity to enjoy rarely sighted cars in one place at one time.” Already confirmed for the Supercar Central display are the $1.5 million Pagani Zonda Roadster from Italy, the hand-built Morgan Aero 8 from Britain and the Australian-designed Elfin MS8 Streamliner.

Mr McKellar said the motor vehicle brands attending this year's show represent more than 90 per cent of Australian car market sales, and that many brands had booked increased floor space this year. Holden is believed to have done so to accommodate the local launch of GM’s Cadillac brand.

“(The absence of Benz, BMW and Audi) is regrettable, but that is their decision and it will not distract us from putting forward a really very worthwhile and entertaining show,” he said.

“Obviously, we would like to have as many brands and as much exciting product as we can available for the motor show. What I would say is that I believe this year's motor show in Sydney will be the best we've ever put forward and we will have a range of vehicles and brands there which the ordinary public will not have seen before.

“If BMW or other brands are not going to be there, that actually provides an opportunity for us to look at the innovations we can bring to the show and to ensure that those brands that are participating have every opportunity to put forward the sorts of displays they've always wanted to put forward.

“In one sense it's a relief to me. What it does is make the job easier because every year we are constrained in terms of the space we have available. We have to cut the brands back, we have to ration their space, but some of those constraints will be eased and it will allow us to provide to those brands that are attending the space they want and it will mean they will have the space they want to put forward the exhibitions they want.

“I'm very confident we will put forward an extremely attractive show this year, removed from some of the constraints we've faced in the past. There will be plenty of stuff there that the public won't be able to see anywhere else.” The 2008 AIMS kicks off at Darling Harbour on October 9 and, according to the FCAI, last year attracted 245,000 people, making it Australia's largest automotive expo and one of the top 10 motor shows in the world.

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