Motorshow turning point

The Federal Chamber of Automotive Industries (FCAI) and the Victorian Automobile Chamber of Commerce (VACC) are close to striking an agreement on a joint venture to run the Sydney and Melbourne motor shows on alternating years.

David Purchase, Executive Director for the VACC told the Carsales Network that the agreement could be finalised as early next week or possibly early next year, but even once finalised, the agreement will not iron out such issues as venues and dates.

"If we were to move both shows to the middle of the year, then that would be better for us in terms of attracting better exhibits from overseas," admits Purchase.

"Our preference would be to keep [the Melbourne show] in March -- from a convenience point of view, but in terms of attracting better exhibits from overseas, the middle of the year -- June -- would be better.

"I think there'll be efforts made to bring the Sydney show forward to the middle of the year, but I'm not sure whether the venue will be available [then].

"The decision is not entirely ours to make, there's a whole lot of other people that have got to be consulted, but the main one is the venue -- are there dates available?"

The Carsales Network understands that the FCAI has already spoken to the management of the Darling Harbour Convention Centre and cancelled the booking for the 2009 dates.

"The 2009 show in Melbourne will go ahead [and] there won't be a 2009 show in Sydney, of course," said Purchase.

"The next major show will be in 2010, in Sydney. And this will now be an international show. Even though we've called ourselves 'international' shows, we haven't been registered as an international show."

Formal accreditation as a true 'international' motor show -- especially if run at a time of year that doesn't conflict with other international motor shows -- could result in more world premieres for the joint venture show.

FCAI Chief Executive, Andrew McKellar concurs, but labours the point that the timing must be right.

"It potentially makes it easier," he said.

"The problem is these things are always under scrutiny, and when you have brands needing to make decisions about whether they commit to one or two or three or four motor shows a year, then the risk is that something gets squeezed out.

"So from that point of view, we need to look at a schedule and the timing for holding these events which fits with the international schedule -- which enhances the likelihood that we are going to be able to secure international premieres and concept vehicles and so on. We're not competing with Tokyo or with Frankfurt or with Detroit or whoever else there might be...

"Last year, for example, Tokyo was a week after the Sydney show and we had some vehicles that came in to Sydney and we had to share some vehicles with Tokyo. There were some concept vehicles that were in Sydney, but not for the full show."

The joint venture initiative is a consequence of car companies withdrawing from the Sydney show this year, on the basis of cost considerations. Just the fit-out and lease for a corporate stand was prohibitively expensive, even for prestige importers. Double that amount for major shows in both Melbourne and Sydney, catering to a national population no more than 21 million, and the finances fail to make sense.

With numerous prestige importers withdrawing from the Sydney event -- and the prime floor space set aside originally for BMW leased by Waeco fridges instead -- the writing was on the wall. The more car companies withdrew from this and subsequent events, the less incentive there was for other car companies to remain committed.

"We learned some lessons in Sydney this year," admits Andrew McKellar, "we need to take those things on board".

"My view of it is that if you're going to do this, you've got to do it properly. There is no point going to the market with something where you haven't got the overwhelming majority of industry support behind you.

"We ran a high quality show in Sydney this year, but for whatever reason, there was an impression that was generated -- in part through media commentary -- that because there were individual brands missing, it was in some ways incomplete.

"Now I think that was somewhat unfair, but nonetheless, that created the perception and we paid the penalty as a result. Now I am not comfortable about going back into the marketplace without something that is of an extremely high quality with overwhelming support from the industry behind it, to do it, because otherwise you face too many risks."

Asked what was involved in shifting dates around for the shared event, McKellar explained that there was more to a typical motor show than just the week to 10 days it was open to the public.

"To run a major international motor show, you really need to be able to book the entire venue, pretty much, for around three weeks," he said.

"Even though the show itself might run for only 10 days, you've got the whole set-up period, when you've got to bump in all the displays and that -- then bump everything out post-haste after the event. In all, you need the venue approaching three weeks."

As with the Melbourne event, moving future Sydney events to the middle of the year may present problems. The Darling Harbour venue is tied up by the boat show held there from late July, so, given McKellar's estimation of three weeks from start to finish, the motor show couldn't start any later than the first week of July. June is a possibility, but that hinges on other events that may already be booked for 2010 making way.

With the void left by the international motor show in Sydney, is there room for a show, smaller in scope, to take its place? What about Melbourne, if that show moves to a mid-year slot?

McKellar tells us that that is one of the issues to be resolved before the joint venture agreement can be announced. Purchase is less guarded about the prospect of an 'off-year' Automotive Week running in each city.

"We haven't yet determined -- either ourselves or the FCAI -- what would be done during that off year," he said.

"However, what I can say is that Automotive Week -- which will be on every year, expanding quite considerably -- will fill the void.

"I would imagine that we might finish up with Automotive Week becoming a feature in Sydney. They might want to have that in the off year. Now whether that becomes a mini-motor show remains to be seen. We haven't even addressed that issue at all. It's too early. We've been simply focused on trying to develop a sustainable motor show model for Melbourne and Sydney in the future. That's where our focus has been."

Automotive Week in Melbourne revolves around the motor show and the Formula One Grand Prix, but in Sydney, it would have to be aligned with some other event, presumably a motor sport event in nature. The Supercheap 1000 at Bathurst would be a logical choice, if organisers were looking for a partner event to a smaller motor show in October...

So, mighty oaks from acorns or an avalanche created by a snowball? You be the judge as to which metaphor best describes the turmoil surrounding Australia's various motor shows.