NT speed limits will decimate car testing business

Reports from the Northern Territory say that limits to be introduced on Territory roads next year will result in NT losing tourism business estimated to be worth $9 million.

Many TravelMole readers may not realise that car manufacturers from all over the world flock to the NT for its combination of unrestricted roads and hot weather, but many are planning to abandon their testing programs when the 130km/h speed limit comes into effect from January.

Holden, Toyota and Ford Performance Vehicles have said that they will cease or prune their NT testing programs, and sportscar specialist Porsche is expected to relocate to South Africa, with Territory businesses saying accommodation, transport and security services will suffer.

NT Chamber of Commerce CEO Chris Young said, “From our point of view speed limits will have a huge effect on the testing business and our members stand to lose millions, with the testing season from October to April coinciding with the low point for tourist numbers.”

Mr Young said, “The new regulations would cost $6 million to $9 million a year in lost revenue, with up to 15 engineering teams testing out between Alice Springs and Tennant Creek during the summer and the wet.”  “When they arrive they need accommodation for up to 20 people in each team, warehouse facilities, rental cars and secure car transporters and provide very welcome business at a time when the wet season in the Top End and the summer in the centre keeps most of the tourists away.”

Central Australian Tourism Industry Association GM Craig Catchlove said the limit could cost businesses in Alice Springs alone about $1 million over the summer, adding, “We don’t believe the speed limit will reduce the number of tourist accidents, but we do think it will have a significant economic impact.”  “Our best estimate is about $1 million, which is significant in a place the size of Alice Springs.”

Porsche spokesman Paul Ellis said the German maker had used the Territory’s roads for more than 20 years, but management was evaluating the change and future testing in the NT was unlikely, adding, “We would comply with all regulations and if driving faster than 130km/h was prohibited we wouldn’t do it,” with South Africa was favourite to pick up the business.

Toyota manager of vehicle evaluation Mina Rezk said high-speed testing might now be conducted in the Middle East, saying, “A major market for Camry is the Gulf region which is a high-speed, high temperature environment,” adding “One requirement in testing the Camry was to maintain high speeds in high temperatures with the air conditioning on, to put a full load on the cooling system, but we will not be able to do that as we used to and of course we have to respect the law.”

Mr Rezk said the company would still use the Territory for dust and off-road testing.

Ford Performance Vehicles spokesman Steve Colquhoun said FPV would be “impacted by the NT Government’s decision” and would “reassess our test procedures”.

Holden spokeswoman Maya Donevska said Territory highways had been invaluable for high-speed hot weather testing the new VE Commodore, but the company would look elsewhere. “Holden will explore alternative locations for testing, and in the interim will use the proving ground facility at Lang Lang.”

Mercedes-Benz spokesman David McCarthy said the NT had made Australia attractive for testing and local buyers had benefited, adding “When German engineers came to the Northern Territory they left with an understanding of Australian conditions”.

Ford spokesman Andrew Ellis said the company’s recent decision to expand its testing facilities in Victoria meant it could minimise the effect of the speed limit and a new laboratory at Ford’s Victorian testing ground could replicate conditions ranging from -40C to +55C and generate wind speeds up to 250km/h, adding, “The new environmental facility will go online sometime next year, eliminating the need to travel to the NT for high-speed hot weather testing.”

Report by an amazed Mole!