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Jeremy Bass19 Oct 2010
NEWS

AIMS feels pinch of renewed industry priorities

Absence is known to make the heart grow fonder, but direct marketing stirs the loins, argue some car companies

There are some gaping holes at the Sydney show, taking shape in the spate of new glamour models conspicuous by their absence.


The missing Ferrari 458 Italia, for example, leaves a vacuum much bigger than the car itself. So too Bentley's new high-end Mulsanne.


Ditto Aston Martin's big buck One 77, Citroen's new DS lineup, MINI's Countryman crossover and Rolls Royce's Ghost, to name some of the bigger prospective drawcards missing from the show.


Much has been made of the Sydney-versus-Melbourne squabbling between car companies and the outfits running the Sydney and Melbourne shows -- the Federal Chamber of Automotive Industries (FCAI) and the Victorian Automotive Chamber of Commerce (VACC) respectively.


It came to a head with the cancellation of last year's Sydney show at the hands of cash-strapped car makers who argued there's not enough room in Australia for two shows.


What emerged was a joint venture between the two organisations running a single Australian International Motor Show that alternates between the cities year to year.


It hasn't been enough to pull all the makers back. This is for reasons extending beyond industry squabbling, back to the simple rationales of business.


"We judge the show's appropriateness on two criteria," Edward Rowe, spokesman for Ferrari and Maserati importer European Automotive Imports (EAI), told the Carsales Network at the show.


"One: will it sell a car? Two: is it a cost-effective way of displaying our wares? On motor shows, the cost now often outweighs the benefit."


EAI parent company Ateco decided to forgo displays for Alfa, Citroen, Fiat and Chinese brand Great Wall.


"The only reason we have a Maserati stand here is that we already had it built," said Rowe. "That basically meant we had most of the cost already covered."


Rowe says the changes imposed on the industry by internet have taken their toll on shows like AIMS, particularly for its direct marketing potential.


"With the web, we're better able to disseminate the stuff we need to impart, so we're less dependent on shows and the passing trade they generate.


"You can use the kind of blunderbuss approach of a show, where thousands of people walk by and someone might stop and buy, or you can use carefully targeted drive programs and the like. The latter is a much more cost-effective way to sell Ferraris."


EAI has also sunk considerable funds into turning its dealerships into mini motor shows, following a trend that's been going on about 15 years, since around the time noted Sydney chef Janni Kyritsis opened his MG Garage restaurant in Surry Hills with megadealer Trivett.


EAI spent $32 million on the Ferrari-Maserati showroom in Woolloomooloo alone.


"It's like having a permanent stand -- special flooring and lighting, atelier, a cafe, a commercial kitchen and the like, all with street frontage."


For BMW and associated brands Rolls Royce and MINI, the explanation behind their absence is simple, says BMW Group communications head Piers Scott.


"No news, that's all. There's no scandal to it; no strategic boycott or anything. It's just the timing was lousy for us in terms of product arrivals.


"We've had a couple of facelifts recently in the 3 and 5 Series; we haven't got a MINI Countryman in the country for show, or a Ghost... The rest -- well, there'd be nothing on the stand people couldn't go into a dealership and have a look at on a Saturday morning."


What about Melbourne next year?


"We look at these things case by case -- if there's anything around to justify the considerable expense of setting up a stand in Melbourne next year, sure. But a year's a long time in this business at the moment."


For our full coverage of the Australian International Motor Show in Sydney visit our minisite at carsales.com.au/aims


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Written byJeremy Bass
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