Australia Car Market: Bad for Foreign Brands; Good for Local Brands

It is bad time for Japan-made cars in Australia. Both Toyota and Nissan recalled nearly 300,000 cars this month due to airbag defects. The Australian subsidiaries of the two Japanese carmakers reported this week that they outsourced the production of airbags to a Japanese company, Takata, and were recalling thousands of units to address the issue.

Toyota Australia alone recalled more than 180,000 cars manufactured between May 2003 and March 2007, including models Corolla, RAV4 and Yaris. Affected Corolla model numbered more than 75,000; RAV4 28,000; and Yaris 45,000.

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Meanwhile, Nissan Australia is still determining which models are affected by the defected Takata airbag, but has already recalled more than 100,000 units. In November 2014, Nissan identified airbag defects in 13,000 Micra models built between September 2010 and October 2011.

The recent recalls in Australia is the latest addition to the airbag issue haunting volume-selling brands from Japan, Europe and the US, reports said. The issue centers on the steel inflator mechanisms in airbags, which break or disintegrate during inflation, spreading harmful metal projectiles onto the passengers. Airbags are supposed to save lives during car emergencies; with defected airbags, death becomes all too quick and real.

While foreign branded cars are recovering from defective parts, Australia’s newest local automaker, Ethan Automotive, is set to launch its cars in 2018. The Aussie company has enlisted Mathew Newey, a former Futuris Automotive manufacturing manager, as its new chief operating officer in June 2015.

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As Ethan’s COO, Newey seeks to deliver 5,000 vehicles, including a sedan, SUV and coupe, in 2018. He also works to develop a factory in the northern suburbs of Edinburgh with output capacity of 30,000 annually with the aid of some 900 direct and indirect hires. Newey has 17 years of experience in the automotive industry working for various brands such as Chery Motors, Jaguar, Land Rover, Tesla and Toyota.