Great News

The China Syndrome - 19/08/2009

Is the first Chinese import a reason to celebrate?

Delivery reports on the first break through the Great Wall.

Great Wall Motors is a name that will become familiar amongst tradies and families that use a ute and don’t care if it comes from Spain,Thailand, Timbuktu or Beijing. And if you think the source of the vehicle is irrelevant then perhaps it’s necessary to look at the bigger picture on global economics.

China is rapidly becoming the source for clothing, cookware,tyres and electrical goods sold in Australia to the extent that even Australian owned companies are looking to China to outsource their manufacturing. That may be good for the consumer in terms of low prices but it spells disaster for those wanting to maintain competitive trades and professions in Australian based industry.

For reasons only understood by Federal Government, tariff and trade barriers have been progressively reduced for importers into Australia but seemingly not for exporters from Australia. The result is that Australian manufacturers or exporters, with the exception of the iron ore and coal industries, are competing on a playing field that is tilted dramatically towards Asia rather than having any semblance of being level.

And now we have the first of the Chinese car and light commercial manufacturers launching products onto the Australian market as a precursor to the start of a major product expansion by different Chinese vehicle manufacturers, some homegrown and others with joint ventures with European vehicle manufacturers.

The Chinese auto industry is currently manufacturing around 11 million vehicles per year but it has a capacity for producing upwards of 15 million vehicles per year. And as production cranks up, new markets, such as Australia and New Zealand are going to be in the target zone. The result could be the total decimation of the smaller and lower cost market of Japanese and European brands as the Chinese products undercut existing pricing structures. The only winners from this potential debacle being the Chinese themselves, the importers and the Australian vehicle buyer at the lower end of the market.

Great Wall Motors is the first Chinese car manufacturer to debut in the Australian and New Zealand markets and it’s offering a choice of two different ute designs. Both are in dual cab configuration with the price leader being a 4x2 dual cab ute powered by a 2.2 litre petrol four cylinder and the upper market model being a new design version, again dual cab, but offered in 4x2 and 4x4 versions powered by a 2.4 litre, four cylinder petrol engine. This product range is however just the first phalanx of imports. There will be single cab versions added to the range before the end of the year.

The 2.2 litre 4x2 dual cab SA220 sells for $18,990 and its newer designed partner the V240 sells for $23,990 as a 4X2 and $26,990 as a 4X4 with an electric selection Borg Warner all wheel drive transmission offering both high and low ratios. And if the pricing sounds attractive prepare yourself for a further shock, these are drive away prices and include registration, green slip and dealer delivery charges.

With competitive manufacturers pricing running at up to $15,000 difference, are the Great Wall Motor utes $15,000 worse than the competition? No. Are the specification levels on a par with the competition? Yes. Will the average tradie be able to tell the Great Wall ute came from China and was a lesser product than a HiLux from Thailand? No. Will the buyer have cash in the bank or be driving a new ute rather than a four or five year old model? Yes.

So, once you’ve figured that the arrival of the Great Wall ute could decimate the current status quo of new and second hand ute pricing how do the new products compare?

Delivery Magazine drove two examples through Sydney traffic, starting with the 4x4 V240 and then switching to the 4x2 SA220.

There is a slight difference in engine performance between the 2.2 litre and the 2.4 litre and although the latter is the more recent engine design we found there was a slight vibration or roughness noticeable through the accelerator pedal that wasn’t evident in the smaller engine. Both engines need to use all available revs to keep up progress, especially where drivers are used to 3.5 litre V6 petrol equivalents but once the mindset has discovered the performance characteristics of four cylinder petrol engines it just becomes another drive. It just means stirring the five-speed manual gearbox more frequently than with a V6. There’s no automatic transmission available and frankly with limited power and torque that’s a good call on the part of importer ATECO.

For the technically interested, power and performance figures compare with 78kW at 4600 rpm against 100 kW at 5250 rpm and torque figures of 190Nm at 2400-2800 rpm versus 200 Nm rated at 2500-3000 rpm.

On the road and without a load in the tray there’s really very little difference but when you consider adding the 855 kg maximum payload for the SA220 4x2 or the 1000 kg payload for the V240 that lack of sparkling acceleration is going to become more noticeable. Given that not every driver carries anything like more than half a payload that disadvantage may not be quite so important.

Suspension is by a conventional double wishbone with torsion bar set-up at the front with independent leaf spring at the rear, you get disc front and drum rear brakes, 15 inch alloy wheels on the SA220 and 16 inch alloys on the V240, both with Kumho tyres, and steering is by power assisted rack and pinion.

The base model 4x2 gets vinyl trim and as one would image a basic ute spec whereas the V240 comes with leather trim panels, a very high level of interior spec and power windows, power mirrors, a six speaker AM/FM stereo radio/CD player, second 12V power socket for accessories and centre console. Both models include air conditioning as standard and both tubs are lined in metal. There are ute liners in polycarbonate available as part of the accessories list and also optional are Sports Bars for the tray, hard or soft tonneau covers, carpet mats front and rear, side steps, a Bluetooth compatibility kit and a driving light kit.

With 45 dealers already on side and a further 30 dealers to be announced by the end of this year the Great Wall utes are backed by a 24/7 roadside assist package and a three year, 100,000 km warranty. The future will see additional models such as a single cab coming on line and there is a choice of two diesel engines, a 2.0 litre turbo diesel and a 2.8 litre turbo diesel waiting in the wings for their debut.

It’s the number one ute in China and has been for ten years and it’s also proved itself in the South African market, also a right hand drive territory. The company has the capacity to supply in virtually unlimited quantities and with a lead time from order to delivery between China and Australia of 60-90 days Ateco can feel confident it can alter its model mix to suit whatever the buyer desires.

In our view nobody gets too excited about driving a ute, wherever its origins and on that basis we can see the arrival of the Great Wall ute as a source of considerable concern for every other ute manufacturer or distributor in Australia. It’s no better than any of the competition but it certainly doesn’t seem to be any worse.