Fast Five

Vin Diesel and Paul Walker lead a reunion of returning all-stars from every chapter of the explosive franchise built on speed in Fast Five

Fans of this series have something to cheer for in 2011.

Prices of new & used cars rise after surge in COE premiums

SINGAPORE: Prices for both new and used cars have gone up, following the surge in COE premiums to 10-year high recently.

Prices of new cars rose 10 percent while second-hand cars are S$3,000-S$8,000 more expensive than before the results of the latest round of COE bidding were announced on 8 December.

COE premiums skyrocketed in the latest round of bidding, with a staggering jump of S$14,612 for cars over 1,600cc. This brings the total premium for that category to S$62,502.

Prices for the Open Category was up S$15,010 to S$64,900. For smaller cars 1,600cc and below, the COE price rose S$8,604 to S$47,604.

These latest COE prices are the highest since 2000.

Following the COE price surge, dealers of new cars see less business over the last few days.

They say the price of big cars is now up by about S$15,000, while small cars are costing some S$9,000 more.

Dealers say the sudden surge in prices has had a huge impact on customers but they believe business will bounce back.

Dexter Tang, manager of sales & operations at Prime Cars, said: "We need time for the customers to digest and accept the price but for consumers who are thinking of buying cheaper cars, I think that is history already. From now on I think the price will be stable or moving upwards."

With the impending cut to the COE supply next year, dealers say premiums may go even higher.

They say some customers may view small cars as having less resale value than big cars, should COE premiums rise further.

Meanwhile, business at second-hand car showrooms is looking good. Motorists may save S$20,000 to S$30,000 if they opt for a used car.

Generally, the used car industry saw business double this October compared to the same month last year.

"Nowadays we can see more people are selling, trading in their cars when they buy a used car....I think that's because more people are focusing themselves on the used car market," said Raymond Tang, honorary secretary of Singapore Vehicle Traders Association.

- CNA/ir

Car agents letting go of sales staff

By Christopher Tan, Senior Correspondent

For Toyota agent Borneo Motors, the largest distributor here, another round of retrenchment could be around the corner.



More than 100 employees have already been let go in two earlier rounds of staff cuts. -- ST PHOTO: CAROLINE CHIA


IN WHAT could be a sign of things to come, motor group Cycle & Carriage will let its 20-strong Mitsubishi sales force and administrative support team go after Chinese New Year.

The group, which retrenched a number of other employees earlier this year, will be farming out its Mitsubishi franchise to a sub-dealer.

The move comes on the heels of a shrinking vehicle market, brought on by sliding certificate of entitlement (COE) supplies beginning last year and expected to continue next year.

In fact, estimates put next year's quota at below 40,000 certificates - less than one-third the average annual supply between 2003 and 2008.

The impending contraction sparked frenzied bidding at the latest tender on Wednesday, raising premiums by 30 per cent to a high of $64,900.

Mr Cheah Kim Teck, motor operations chief executive of Cycle & Carriage, said the cost-cutting measure was necessary as the market share of Japanese makes had plunged in the last one year.

The relatively weak euro and higher profit margins have allowed German carmakers like Volkswagen, Audi, BMW and Mercedes-Benz to erode the Japanese's long-dominant presence in the market.

The Japanese brands, which traditionally have thinner margins, have also been saddled with a strong yen in the past year.

Mr Cheah said its Kia operations had also not been profitable of late, but downsizing is not yet in the offing.

'The way to do it is the low-cost way,' Mr Cheah said, adding that Mitsubishi Motors, the car manufacturer, had agreed to the move.

After Chinese New Year, Mitsubishi will move from its current Alexandra Road showroom - which Mr Cheah described as 'expensive' - to Fulco, a sub-dealer located in Kampong Ubi.

Mr Cheah said Cycle & Carriage will retain its role as importer and marketer of the Japanese brand.

He said the freed up space in Alexandra Road will be used to house Cycle & Carriage's expanding used-car operation.

Over at Toyota agent Borneo Motors, the biggest distributor here, another round of retrenchment could be coming soon.

The company has had two earlier rounds, when more than 100 employees were let go.

A senior executive would say only that the company is 'exploring options' now.


Elsewhere, sales staff at motor firms have been leaving in droves since the COE supply was slashed by over a third this year.

A spokesman for Hyundai agent Komoco said its sales strength had fallen by more than 10 per cent this year to about 50 people.

At Chevrolet agent Alpine Motors, the sales staff strength has gone from 40 to 25 in the last one year.

Alpine managing director Albert Pang said: 'It is going to be tough going forward.'

Many motor companies, meanwhile, will have an equally tough time delivering cars sold before Wednesday's spike in COE premiums, which sent prices $8,000 to $15,000 higher.

The firms are unlikely to absorb the huge increases, and are expected to ask buyers to top up on their purchase price.

According to the Land Transport Authority, half of the 3,432 bids that were submitted at Wednesday's tender were unsuccessful.

Seeing how motor firms usually stagger their bids, industry watchers reckon there could be as many as 3,000 buyers who have ordered cars but are unlikely to get them unless they are willing to pay more.

Retired motor trader Lee Chiu San, 64, said: 'It is simply consumers who refuse to be logical. They keep demanding new cars at the wrong times.'

He added: 'There is no reason not to drive a car for 10 years, and no reason whatsoever not to buy a good, second-hand car, which I just did, for less than the price of today's COE.'

The motor industry in Singapore is going into the dumps, thanks to the government and their superb idea of the COE.

COE prices skyrocket

CERTIFICATE of entitlement (COE) premiums for cars shot up in the latest tender yesterday, 8th December 2010.

The bidding frenzy was sparked by fears that quotas would be slashed in February to a 20-year low.

The premiums chalked up their single-biggest increases in more than a decade, with rates for bigger cars rising by more than 30 per cent.

The COE premium for cars of up to 1,600cc ended at $47,604 - $8,604 or 22.1 per cent higher than its rate at the last tender three weeks ago. The premium for cars above 1,600cc soared by 30.5 per cent to $62,502, from $47,890 previously.

For Open COEs, which can be used for any vehicle type but end up being used mainly for bigger cars, the premium was 30.1 per cent or $15,010 higher at $64,900.

The prices are among the highest since the vehicle quota system started in 1990. The last time premiums were this high was back in the 1990s.

Very soon, cars will only be a luxurious item in Singapore roads. COEs are now more expensive than the car itself. Pay the price of two cars to drive one, will this lower the car population? I have my doubts.

Muscle in Singapore

By Joel Tam

You've seen them in all their aggressive glory in photos. You've read about their enormous torque and sonorous V8 soundtrack. Well they're finally here, and man, do they rock!

The ultimate muscle car is here. Harvest Automobiles has launched the HSV brand of performance cars from down under, here in Singapore. HSV (Holden Special Vehicles) is to Holden what the M division is to BMW, or AMG is to Mercedes-Benz.

Top-of-the-range model in the line-up available here is the 435bhp 6.2-litre LS3 V8 powered GTS four door sedan. Also available are the Maloo ute, Grange, Senator Signature and R8 Clubsport Tourer. All powered by the same monster V8 motor, but tuned to a slightly different song.

The range of HSV models will be based on the recently facelifted E3-series Commodore sedans.

For the GTS, the Enhanced Driver Interface (EDI) is a data logging interface. Now the driver can record and download performance related data like G-force, lap times (using GPS), throttle opening, etc. The recorded telemetry data can then be downloaded via USB.

Prices for the HSV line-up start from S$318,000.

6.2L cars, road tax will kill in a place like Singapore, not forgetting the petrol bill. Any surprises that USA is a country where carbon emission is the second highest? They like big engines and petrol is cheap that's why. Will this pick up in Singapore? I have my doubts.

BMW World Singapore 2010

Car enthusiast or not, everyone is in for a superb treat at the BMW World -- Asia’s largest showcase of BMW innovation, design and heritage. Discover icons that have changed history. Glimpse the future with today’s concept cars. Welcome groundbreaking technologies. Preview the 2011 BMW Lifestyle Collection. Come experience BMW like never before.
10th-14th November, 10am-12mn
Marina Bay Sands Expo & Convention Center, Admission is Free

Get up close with numerous BMWs, know more about their technology and latest car models. It seems that BMW has scrapped the 6series as I didn't see one on display. What surprised me is the introduction of the sedan version of the M3. Now you can be a family man driving a M3 which was only possible with a M5 previously. Head down to the exhibition, it's not one to be missed for a car enthusiast!