ADR harmonisation a boon for our engineers?

Does our parochial automotive market hamper our ability to compete on the world's stage?

Damian Cessario believes the best path for the Australian automotive industry, moving forward, is to align itself closer with European markets.

"I spend a fair bit of time in Europe and work closely with a number of European companies and OEMs," the principal of DLC Capital said during the Cars of Tomorrow conference in Melbourne last month.

"I think the European market is the most sophisticated... the Asian market sits somewhere to the side; the US is different again.

"Australia would benefit significantly by understanding more about what is actually happening in Europe... they've got significant emission problems, significant transport problems – and there are other driving forces. A lot of the innovation is actually coming out of Europe, and if Australia can understand where the opportunities are [we] would do a lot better.

"At the moment, in Australia, we're very fortunate. We have a lot of space, we don't have the congestion problems, we don't have the emissions problems. [But] we're starting to understand what the bigger problems are globally."

In essence, Australia is living in a fool's paradise, Mr Cessario implies. No one cares that we are missing out on some of the more technically advance offerings from Europe, not while fuel is (relatively) cheap and air is clean. Cessario did not wish to discuss the known issues of fuel quality in Australia, since he felt it would be inappropriate in his position, but he did explain that climate and fuel shortages have pushed European manufacturers and governments towards the leading edge of automotive technology – by necessity.

In Australia we have missed out on some of the most fuel-efficient cars available in Europe due to the sulphur content in fuel, but that's improving. According to Cessario the problem is bigger than just fuel quality. It's a problem requiring an all-encompassing solution and fuel quality is just a small component of the puzzle. Of more concern is our social mindset...

"It really is about pressures – commercial pressures. Europeans want to be more green, environmentally-friendly. That is a genuine consensus in the marketplace. You've got 300 million people in a very small continent – so they're very much aware of their effect on the environment; far more than we are in Australia...

"Then you've got innovators as well, and they're actually pushing. So it's a combination of a number of factors; I don't think we have the same driving forces here. It's a psychological shift in the consumer that will then potentially push government and policy to some extent. However I don't know whether the government is in a position to do anything. I don't want to be seen to be too political... but I think we need politicians to be statespeople."

So the 'push' ultimately comes from consumers and other interested parties at a grass-roots level, Cessario says, but arguably the current federal government has squandered the goodwill of the electorate in the way we tackle climate problems. And the federal opposition doesn't look any more committed to a pro-active stance either.

There are a number of groups with a vested interest in saving the expenditure to align our vehicle design rules with those of Europe, and local manufacturers loom large among those groups. But there are signs that local manufacturers are moving closer to Europe, philosophically. Ford's Ranger – designed in Australia – has been rated five-star safe by Euro NCAP, and Holden's work on the Cruze hatch has found a niche in global markets... both are indicators of that convergence with Europe. Even Toyota's Aurion being sold in Russia shows the same trend. But Cessario would like to see further change – and taking place sooner.

"I think closer synergies with the European markets could actually help Australia on a number of levels, because we have a lot of technologies and a lot of capabilities that could actually help the Europeans as well. Our biggest strengths are our abilities from an engineering point of view, et cetera, and I think it's six of one, half a dozen of the other. Which way do you go? Work on your strengths rather than impeding [them]. I think Australia would benefit significantly by engaging more with a sophisticated market like Europe."

But what could we offer Europe?

"Our engineering smarts... this is also where we've been fortunate – and this is really important to note – our governments and institutions have invested heavily in research and development. We need to export that skill set, that ability to solve problems.

"I think Australian engineers are some of the best in the world. If you give an Australian a problem, they'll solve it... but you've gotta raise the benchmark."

Although Cessario doesn't use the phrase 'can do', it's clearly uppermost in his mind in discussing Aussie engineers taking their 'engineering smarts' to the world. It's less a brain drain, such as we've seen in the past, as the ebb and flow of ideas and processes across borders and even between continents. Just as we've had German engineers in Australia learning from Ford for the first time about leaf-sprung live axles, perhaps Australian engineers could be headed in the other direction to work on ultra-high tech emissions and safety systems.

"Australia has so much to offer; we're fortunate we've got a government that's investing in R&D and skill sets. It's a case of how we, as Australians, engage with the rest of the world market. I think the future is in the world market, it's not domestically [although] the domestic market would actually benefit."

It's an opportunity for Australian engineers – and their employers – to become an intellectual annex of Europe and export technical solutions throughout our region.

"There are some really interesting opportunities to engage with Europe and actually create new products for Asia. I think that's an obvious one," Cessario concludes.

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ADR harmonisation a boon for our engineers?

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