Is Australia big enough for boutique vehicles?

There seems to be yet another round of boutique vehicles based on production models raising their heads again.

The KPM Streetfighter and the HDT models appear to be another episode it the "I can do it better" saga.

We have had 4WD Utes, turbo XF and EA, Phase 5 and more recently CSV, DJR and Arrow coupes just to mention a few.
Even the more esoteric Giocattolo and Bullet (MX5 with a V8) were amazing ideas that just did not seem to go anywhere

They all appear with huge publicity and cries of joy from the motoring public but when it comes down to opening the wallet the great Australian tradition of "I will buy one second hand when the price drops" kicks in and they falter.

Even with FPV and HSV "It is too expensive" is the most commonly heard reason why one is not bought.
And of course the "I want 100 years warranty and everything fixed for free regardless of what I break" attitude.

So is there a viable place in Australia for boutique manufacturers?

How appropriate that you have the first Poll!!!

Yes, the problem with "white noise" is unfortunately its louder than "reality noise"... The truth is factory performance vehicles have never been more affordable than now relative to wages. I paid 50k for my AUII XR8 back in 2001... The Equivilant XR6T is now 46K... ELGT's were 70k back in 97.
I think the aftermarket has done a better job of promoting themselves to people who are happy to kill their warranty or modify their vehicle but for street cred nothing quite compares to Factory performance.

It certainly is a good time for buyers of aussie performance cars, never before have we had so much on offer for so little cash outlay. The problem is true boutique vehicles in all markets are not volume sellers, the market is very limited. In australia the motoring market is very small in comparison to US and Europe and therefore the boutique market is tiny.

Motoring enthusiasts are the same everywhere, a lot of chest beating and opinion but in terms of buyers, a lot less action is seen in the showrooms. So many love to see the glossy magazine pictures and analyze the stats but not many actually actually back that opinion up with a purchase. I think this is a situation that is not likely to improve with the current financial climate and consumer attitudes.

I voted no make it yourself. I'm planning on making a BF3 Falcon wagon into what should have been a Fairmont Ghia wagon. If funds allow Id drop in a 3v V8. Then the plan is to keep it for many many years and to use it as a genuine family car. Or I could just buy a SSV sports wagon / Calais wagon with a V8.

My point is having a wide range of options available to the customer should have helped not hindered.

Diversity is the key, take 1 platform, Aussie derived or a suitable donor, then use it in many different ways.

Lack of options is a logistics issue, simple as that. The don't and haven't for year built, all white sedans today. They mix up simple & complex builds on the line to even out the production flow.

ADR testing is a whole different issue.

There's always a place to offer the consumer "choices" in any field BUT we are talking boutique performance house's here arn't we.
Fickle game and punt imo - we don't have the population and by the time a price is set its far higher than buying a genuine item (be it underpowered compared to the boutique option) factory WTY ( not to say thats a gaurantee) but this always puts in some doubt for many I'm sure.
Lucky Herrod survive's, not sure how anyone like to contribute ?
Long time in the game, connected with Howard Marsden gained some Ford business helping him to establish a reputation and soldiers on customising, I'm sure day to day servicing is his bread and butter but does he get much margin from the "specials" he makes after all the R and D put into them ?
Just go back to Mick Webb or how about Corsa on the darkside.
They run out of $$$ imo - what do you do say you bought a KPM right now at $100k and there OOB within 3yrs arrrrgh !

Don't get me wrong great to see some small business owners having a punt and good luck to them taking the risk and thats just the way I see it purchasing a car from them but a very small minority do hence why I voted Yes.

Quote:

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Originally Posted by FTe217

There's always a place to offer the consumer "choices" in any field BUT we are talking boutique performance house's here arn't we.
Fickle game and punt imo - we don't have the population and by the time a price is set its far higher than buying a genuine item (be it underpowered compared to the boutique option) factory WTY ( not to say thats a gaurantee) but this always puts in some doubt for many I'm sure.
Lucky Herrod survive's, not sure how anyone like to contribute ?
Long time in the game, connected with Howard Marsden gained some Ford business helping him to establish a reputation and soldiers on customising, I'm sure day to day servicing is his bread and butter but does he get much margin from the "specials" he makes after all the R and D put into them ?
Just go back to Mick Webb or how about Corsa on the darkside.
They run out of $$$ imo - what do you do say you bought a KPM right now at $100k and there OOB within 3yrs arrrrgh !

Don't get me wrong great to see some small business owners having a punt and good luck to them taking the risk and thats just the way I see it purchasing a car from them but a very small minority do hence why I voted Yes.

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There will always be a need and place for the tune shops, but all they do is modify a factory vehicle, they aren't vehicle manufacturers in their own rights. Take Walkinshaw for example, they modify a GTS or Clubsport, they don't manufacture a new car as a "walkinshaw model XYZ".

KPM are no different to any other tuner other than they've marketed themselves a bit more boldly. At the end of the day though you still have a modified GS or GT.

The "streetfighter" label doesn't mean anything in reality because it wasn't manufactured by FPV and there is no set specification for a "streetfighter".

Norm, I gather you are talking aboout Aussie Boutique like the Bowell Nagari, the Illunga (Memory escapes me what it was actually called, I know I had a picture of it on my wardrobe ,in the 70's)?
More like in England where there are numerous little car builders (such as Nobel)
But one they have the population, and two, are their design rules as tough as Australias?

IMO there certainly is a place in the market for boutique manufactures that are willing to put the time and effort required into business planning before they rush off developing components and placing them on cars. Fleshing out the smaller details, from market research, branding, systems, manufacturing, distribution, legals etc are all common reason why many boutique manufactures fail to realise any real success in the market place and have trouble convincing customers to part with their money over larger players like FPV , HSV….

For example, most boutique manufactures other than FPV and HSV fail to deliver vehicles to the market that are street legal, tested for longevity and ADR compliant to their consumers, meaning they are modified for off-road use only until they are independently tested and validated by the relevant legal authorises. Those consumers that are willing to the take to time, money and effort required to do this are few and far between. Talk about a small market. This market is also filled with enthusiast consumers that are either willing to run the risk, or have naively assumed that the modifications ‘would’ be ok if tested.

In terms of consumer protection some manufactures, to their credit have gone part of the way by offering vehicle and component warranties which is a great start, but this is only part of what is required if they want to produce a finished product capable of being sold in the hundreds, or even thousands rather than single, or double digit units. Many boutique manufactures will cry out that this makes the cost too prohibitive for most out there. They are probably correct in this thinking. In business, only the strong will generally thrive and succeed. This is usually because they are able to align their brand promise with their brand experience, while solving a real consumer problem and being excellent at fulfilling a consumer need.

I think brands like Herrod, KPM and a few others have much more potential for growth than many out there. This is due to them putting in the time and effort required to build their brand and relationship with their consumers that experience it. Both have aligned their brands with consumer expectations which have seen them manufacture, market and distribute individual kits and components with various degrees of success.

Transitioning from selling kits and components to selling cars on the other hand will require a much greater level of discipline, risk, money and detail if they plan to be successful on a large scale (units of hundreds or thousands like FPV. HSV). The good news is the platform for achieving this is certainly there if they have a clear vision of what they need to become, and if they want that vision realised bad enough. What FPV and HSV achieve is outstanding when one considers the pricing point, testing requirements, product development, legal’s and logistics involved. There trump card however lies in that both these brands have a strong competitive advantage of having the manufacturing and brand support of the various parent companies, Holden and Ford.

Any boutique manufacture needs to be prepared to take this on as a challenge and find their market niche and competitive advantage. They may possibly need to negotiate a deal with parent manufactures just like Walkinsaw and Prodrive did, but on a smaller scale. Alternatively they may choose to align with successful engineering company like Harrop. They must consider pricing points and what they need to do to ensure their point of difference resonates with consumers, and solves problems in the consumer’s mind that FPV and HSV have created, or chosen to overlook. They will need to deal with the realities of the legal obligations if they are creating a product that is designed for legal street use. They need to do all this and more, while manufacturing a finished product that is sustainable and profitable so they can build and grow their business and brand.

Sounds hard I know, and it is, but it is also possible to achieve IMO. In fact it’s what every business faces if it is truly committed to building a successful business and brand which with passion and heart that consumers remote with.

Great post Colville.

I think as you rightly point out until someone can tick all the boxes in terms of ADR's, Warranty and durability people wont see them as a Boutique "manufacturer" and just as a performance tuner/"modder", which to many is fine.