Under his leadership, the Liberals were heavily defeated by Labor in 1985. Afterwards he faced a challenge to his leadership of the party from Ian Smith. Kennett survived easily, but increasingly, he was seen as an erratic and unapproachable leader. He faced two more challenges to his leadership in 1986 and 1987. In 1987, in one notable incident Kennett referred to the Federal Liberal leader John Howard using colourful language in a mobile telephone conversation with Howard rival Andrew Peacock. The car-phone conversation damaged both Howard and Kennett politically, but aided Peacock in his push to return as Federal Liberal leader (1989).