Australian technology could drive national car

Australian technology could drive national car

By Alexander Corne and Mitchell Mackey

Indonesia's national car could be based around Australian
design and technology rather than British know-how.

Unconfirmed reports from the United Kingdom suggest Rover,
which is owned by BMW, has decided against offering technology
transfers to Indonesia, which may have included an as yet unseen
V6 engine.

The 2.5-liter V6 Rover engine which is said to use state-of-
the-art, bolt-through construction, would have been used in the
car, thought likely to have been based on a heavily modified and
revised Rover 400 sedan or five-door hatchback.

However, Rover now seems to have decided against direct
involvement with the Indonesian car program and its executives
are said to have returned to the UK recently without signing an
agreement.

As a result, bidding from Australian-based companies for the
design and engineering work far more bespoke Indonesian design is
expected.

The development of a national car, similar to Malaysia's
Proton, is Indonesian Government policy. However, the project is
widely regarded within the industry as impractical because of the
huge costs involved and the fiercely competitive nature of the
international car industry, which would make life very difficult
for any newcomer.

Speaking with Automotive Business & Motoring News last month,
the chairman of the Indonesian Automotive Federation, Herman Z.
Latif, said the focus should instead be on the development of an
integrated network of automotive component companies.

"We need to be idealistic in our thinking, but we also must be
realistic," Herman said.

"What is the necessity now to insist on our national car and
at what cost?"

Herman said there could be good opportunities for companies to
work with the world's carmakers in Indonesia and internationally
as suppliers of components.

Industry analysts say substantial, direct government
investment in the national car is unlikely and the necessary
finance would have to come from the private sector and include an
alliance with an established international carmaker.

The Indonesian company Megatech, which owns Italian super
carmaker Lamborghini, is reportedly one of several companies
examining the feasibility of an Indonesian car. Korean car
manufacturer Kia is also involved in negotiations with potential
partners.

It is understood that the government project is being led by
the Ministry of Science and Technology, under B. J. Habibie.

Habibie's preference for advanced technology could mean that
the Australian companies who are offering state-of-the-art design
and engineering may have an advantage.

Contracts are said to be on their way to several Australian
companies for the production of computer-generated designs as
well as clay and metal mock-ups.

Engineering firms in Melbourne remain tight-lipped about the
project, but industry sources there suggest that The Millard
Design Group is close to signing an agreement with the Indonesian
government.

The Millard group is currently working on The Australian
Concept Car project, which has been conceived to demonstrate the
capabilities of the Australian component, design and engineering
companies.

This concept vehicle could indicate the direction Indonesia's
national car program may take.

The Australian concept is presently only in rough sketch
stage, but it is expected to be shown at key international motor
shows in 1997, having been engineered by the Millard group in
Melbourne.

One of the car's key components is the Australian-designed
Orbital two-stroke 1.2-liter three cylinder engine, though the
company also produces an in-line six of 2.0-liters capacity,
which could also be used.

Orbital's engine plant in the U.S. is easily transportable and
could find its way into any country wanting to use its advanced
two-stroke technology and benefit from local production.

Like the other concept car partners, Orbital's aim with the
car is to expose automakers and nascent car industries around the
world to the benefits of its technology, in this case its frugal
and clean-running engines.

The Australian project involves a consortium of 80 component
suppliers who are expected to invest a total of $21 million
between them in terms of research development and project
support. The Australian government has offered its moral support
through Austrade, its official export promotions arm.

Closely associated with Millard's design studio is the
American automotive component manufacturer Venture Plastics, and
the engineering toolmaker Tool and Die.

This triumvirate has the capability to offer an Asian-based
development facility said to rival any such departments in
Detroit, Frankfurt or Tokyo.

Sources in Australia who suggest that the Indonesian car
project has become active, point to the arrival of a group of
Indonesian technicians who are said to have moved to Melbourne to
work full time.

An executive from Millard Design Group refused to confirm or
deny the company was involved in the Indonesian project, but
conceded that they were active in Asia for business and that
several countries are eager to produce their own cars, rather
than assemble cars designed initially for Western markets.

A source close to Millard Design suggested that if the company
were to undertake work for Indonesia, it would be carried out in
Melbourne in the initial stages before being transferred to
Jakarta.