Barina Sales Crash Causes Holden To Rethink Safety

[JoeT]

Sales Crash Causes Holden To Rethink Safety

Bruce Newton
10 June 2006
www.drive.com.au

Poor crash test results for the big-selling Holden Barina seem certain to trigger modifications to improve its safety performance.

Holden managing director Denny Mooney told Sunday Drive last week that engineering work was under way at GM Daewoo in South Korea, where the Barina is built.

He stopped short of confirming that structural changes had been approved for production, but said a fix should flow through before the end of this year.

"We are looking at it," he said. "I say that in all seriousness because I am committed to making the car perform as best we can."

In February, the Chevrolet Aveo - sold in Australia as the Barina sedan - scored two stars out of a possible five in a European New Car Assessment Program (NCAP) crash test. And in May, the Barina hatchback scored two stars in an Australian NCAP test.

Both cars were criticised for their likelihood of causing serious chest injury to the driver in a frontal impact. The Aveo's result included a strike through, indicating the potential for life-threatening injury.

"I think that [poor rating] caught us and our GM Daewoo engineers off guard," Mooney said." Our internal data said it was a three-star car.

"We have had our engineers here working with the GMDAT engineering group on the results and having a dialogue on whether there is opportunity for us to make changes to improve the score.

"We'd try to get it to the best performance we think we can. Certainly three stars."

While he was prepared to concede the Barina's NCAP performance required attention, Mooney stressed that the car was safe.

"I drive the car and I don't have any problem," he said. "My daughter drives the car and I don't have any problem. I am very confident in the car's safety."

The Barina is a rebadged Daewoo Kalos, sold in Australia since late 2005. The previous Barina was sourced from Opel in Europe and earned a four-star rating from NCAP in 2002. Holden has received widespread criticism for introducing a new model that had a poorer safety rating than the car it replaced. Despite the negative publicity, the Korean Barina has been a big hit for Holden.

Originally priced from an ultra-competitive $12,990 - its price now starts at $13,490 - it has sold about 1300 units per month, almost double the previous Barina. In May sales fell back to their old levels.

Mooney said supply issues and the $500 price rise impacted on sales, but mass media coverage of the poor crash results was also starting to have an effect on sales.

"That publicity did not help, there is no question about that," he said.
While he was cautious in his public statements, other Holden executives privately expressed no doubt the two-star rating had hurt sales. They are also convinced NCAP-driven modifications are definite for Barina.

The most likely outcome will be reinforcing the chassis rails with additional welds to better cope with the NCAP 64kmh offset deformable barrier test. This would also mean retuning of the dual front air bags and seatbelts.

The modifications would not only apply to Barina, as the Daewoo mini is sold in 95 countries under various GM brand names.

Meanwhile, Mooney confirmed that Holden has cautious sales expectations for its all-new VE Commodore due in August.

The current nine-year old Commodore has been a record seller for the company, topping out in 1998, when 94,642 were sold in Australia. But spiralling fuel prices, which have cut deeply into all locally manufactured large car sales, would continue to have an impact when the new car goes on sale, Mooney said.

Holden Barina

[paul8488]

Originally Posted by JoeT

"I think that [poor rating] caught us and our GM Daewoo engineers off guard," Mooney said." Our internal data said it was a three-star car.

What?!? You were okay with it being worse than the outgoing model? That's pretty weak!

That said, the car looks quite nice in the picture here! You wonder how they'll see these if customers hear that they're going to be modified in the near future.

[Bravada]

So much for the guys who believe in the ingenuity of substituting the Corsa with the Aveo, and that small car buyers shun safety... Three stars! That's just wonderful in the world of all-star superminis... They will just stuff loads of additional metal and claim this improvement - Denny, time to pay for your mistakes and pack your bags.

[Stormin]

That's a bit harsh Bravada. The article states "Despite the negative publicity, the Korean Barina has been a big hit for Holden."

If they had stuck with the Corsa, they couldn't compete. Compare the Barina sales with the Ford Fiesta. You either sell with no margin to keep volume or sell at a realistic price and see sales drop (ala Ford).

Also as stated, the simple fix may be extra welding. Granted, this should have been done in the first place, but it's hardly Denny's fault. The fault is at GMDAT. Australia is just one of nearly a hundred countries selling the Aveo.

[Stormin]

On second thoughts, Denny is probably on the board at GMDAT so we can blame him.

[Bravada]

If they had stuck with the Corsa, they couldn't compete. Compare the Barina sales with the Ford Fiesta. You either sell with no margin to keep volume or sell at a realistic price and see sales drop (ala Ford).

As posted in another thread, the Fiesta is merely a few dozen cars behind Barina now that the crash test results surfaced. I guess the Corsa wouldn't have done any worse than the Aveo does now, given how it was more popular than Fiesta all the way (AFAIK). Besides, there is a new Corsa coming, and I guess it would even increase the lead over the old plain Fiesta.

[Butz]

So, they will attach a half-foot bumper?

[Richard1098]

Originally Posted by Stormin

That's a bit harsh Bravada. The article states "Despite the negative publicity, the Korean Barina has been a big hit for Holden."

I agree. I remember a few years ago when Hyundai raised the drive away price of the Excel by $1,000 when they introduced the DOHC engine. Sales tumbled instantly.

I suppose it depends which issues you want to latch onto: price increases, supply issues or crash results.

Originally Posted by JoeT

Mooney said supply issues and the $500 price rise impacted on sales, but mass media coverage of the poor crash results was also starting to have an effect on sales.

"That publicity did not help, there is no question about that," he said.

So when Barina sales rebound in June or July, that will be because of the proposed safety improvements?

[kenman923]

That's the thing with these small cars. There is nothing there to protect you when you get into an accident.

[paul8488]

Originally Posted by kenman923

That's the thing with these small cars. There is nothing there to protect you when you get into an accident.

No, but that's just it, in some cases there is! Bravada mentions it in this very post... there are some 5-star tiny little cars, and while the old SUV versus Smart debate rages on, small cars can be built relatively safe, and 2-stars doesn't cut it!

[Richard1098]

Originally Posted by paul8488

No, but that's just it, in some cases there is! Bravada mentions it in this very post... there are some 5-star tiny little cars, and while the old SUV versus Smart debate rages on, small cars can be built relatively safe, and 2-stars doesn't cut it!

But don't forget NCAP style tests do not take differing vehicles masses into account. A four star 800kg mini car will not protect its occupants to the same level as a four star 1700kg sedan if they collide. Its a simple matter of physics.

[paul8488]

Originally Posted by Richard1098

But don't forget NCAP style tests do not take differing vehicles masses into account. A four star 800kp mini car will not protect its occupants to the same level as a four star 1700kg sedan if they collide. Its a simple matter of physics.

That's something I never understood about crash testing, if it is indeed true. There should be an absolute scale, I should think, so that a 5-star rating is a 50star rating, whether it's a Smart or a Suburban. The rankings are based on intrusion into the passenger compartment and risk of occupant injury, right? Shouldn't matter what the size of the vehicle is... they should all be expected to protect people.

Not arguing with you... just trying to understand why the scale might vary according to vehicle size.

[mikmak]

When it was first announced that Holden would be substituting the Corsa for the Kalos I selfishly justified it by agreeing that it is a good way for Holden to make some cashola which will aid in the development of vehicles more attractive to me ie Commondores and mid sizers. When it comes down to it though, with the popularity of SUVs (thankfully falling now though) and other massive luxo barges, it is more important now than ever to have the safest vehicle that is econimically viable. I dont mean "nanny aid" electrickery that removes a drivers opportunity to enjoy what is a mundane task for most motorists. I mean safety kit that stops you turning into a suspension component for the Land Rover that just parked on top of you!

I dont think its good enough for Holden. The End.

[Richard1098]

Originally Posted by paul8488

That's something I never understood about crash testing, if it is indeed true. There should be an absolute scale, I should think, so that a 5-star rating is a 50star rating, whether it's a Smart or a Suburban. T

In essence crashing a 800 kg car into a solid barrier repicates the forces of two 800kg cars colliding. Crashing a 2000kg SUV into a solid barrier replicates the forces of two 2000kg SUVs colliding.

It would be very difficult to create an absolute scale, but I agree it would be good. A four star Smart crashing into a another 4 star Smart is a very different scenario to a Smart crashing into a 2000kg mid range SUV. I don't have an issue with NCAP style tests, as long as they are used to compare similar vehicles.

[mikmak]

Not sure how much that would help. A 4 star barina versus a 9 star SUV would certainly inject more enthusiasm in the large vehicle market.