MARCH JUNE 2022 2021
FUTURE RIDE
HUMMER EV
25 YEARS YOUNG
Capricorn's 25th Anniversary in New Zealand MEMBERS RALLY AFTER DEVASTATING FLOODS The most expensive repair bill from a flood ever recorded in Australia.
THE AUSTRALIAN GRAND PRIX Making a triumphant return!
WHEN WILL WE SEE AUTONOMOUS VEHICLES? They may be a little while away!
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GI S PE TR N AT SO IO O NS N
Capricorn DINNER & TRADESHOW
Save the Dates
Q UEEN SLA N D
VI C TOR I A
8T H O C TO B E R 2 0 2 2 T H E STA R
12 T H NOVEM BER 2 02 2 MELBOU R NE CONVENTION AND EXH IBIT ION C E N TR E (D ISPLAY) AND C R OWN M ELBOU R NE (DIN N E R )
W E ST ERN AUSTRA LIA 2 9T H O C TO B E R 2 0 2 2 T HE C ROW N P E RT H
SO UTH AUSTRA LIA 5T H N OV E M B E R 2 0 2 2 A D E L A I D E CO N V E N T I O N C E N T RE
NE W S OU TH WAL E S 19 TH NOVEMBER 2 02 2 INTER NAT IONAL CONVENTION C ENT R E
CONTENTS JUNE 2022
David Fraser Group CEO
CEO’s message
In business, when we grow, we don’t grow alone. We grow, yes, through our hard work and efforts. But we also grow because others have believed in us enough to come along for the journey. They’ve become our customers, and repeat customers, and, hopefully, loyal advocates who spread the good word about us to others. I’ve been reflecting recently on how growth occurs, because in 2022 Capricorn is reaching a few milestones that paint a gratifying picture of our own growth. I hope you’ll forgive my indulgence in discussing these milestones here, because we literally could not have reached them without you. The first milestone is that 2022 marks 25 years since Capricorn crossed the Tasman into New Zealand. Our first New Zealand Member joined Capricorn in June 1997 with a NZ$500 share purchase. At the time he had only four suppliers to choose from! Capricorn’s opportunity for growth was also our first Members. In the first few years Capricorn focussed just on Auckland, but we soon spread across both the North and South islands. From one original employee, we quickly grew, and by 2004 had more than 350 Members and 200 suppliers. Within a few months we expect to make another milestone, welcoming our 5000th New Zealand Member into the Capricorn family. The decision to grow into New Zealand has become an outstanding success story for Capricorn. We’ve achieved new Member growth and growth in Member purchases beyond what could have been imagined in those early years. The third milestone I wanted to mention occurred in April this year, when Capricorn welcomed our 25,000th Member. Back in 2005, the cooperative believed a membership of 15,000 was ultimately achievable, so we have certainly outperformed on that measure. This hasn’t happened by accident. It goes back to those key inputs I mentioned earlier — hard work and effort — and getting the offering right, so that Members believed in us. For us, growth meant inspiring our Members to choose to use their Capricorn account for every purchase, because they could see the benefits of doing so. Capricorn’s growth is, therefore, directly related to your success and your belief in the difference we can make to you and your business. So, our goal will always be to help you address your needs, and be competitive, and to provide our service as cost effectively as possible. Milestones are wonderful things and should be celebrated — and we’re certainly celebrating ours at the moment. But the job of ensuring growth continues. The hard work, the effort, and the belief continue. Because, after all, we don’t grow alone, we grow together. I think Capricorn can continue to work on how we help you and all our Members, not just in your business, but to achieve your personal and life goals, too. Helping you achieve success in your life, through your business, is a holistic approach we continue to work on. It’s also one I believe is very consistent with the cooperative ethos on which Capricorn has been built.
Yours in cooperation,
4 Cooperatives Build a Better World: 2022 International Day of Cooperatives
5 Members Rally After Floods The most
expensive repair bill from a flood ever recorded in Australia.
7 Aftermarket Industry Success Automotive Aftermarket and
Collision Repair Expo
8 Future Ride
The Hummer EV. Yes, that Hummer!
10 The Australian Grand Prix Making a triumphant return!
12 Diagnosis and
Rectification Advice Bendix Brakes
14 25 Years Young! Capricorn celebrates 25 years in New Zealand
16 Building Your
Network Customer collaboration
18 When Will We See
Autonomous Vehicles? They may be a little while away
22 Customer Service 3 things to teach every new staff member
David Fraser Group CEO All information, material and content in this edition of Ignition is provided or sourced by Capricorn Society Limited (“Capricorn”) for general information only and is not intended to be advice or comment on any particular matter or subject. Before acting on any information in this edition of Ignition you should consider the relevance of it to your own circumstances and, if necessary, take professional advice. Any opinions expressed in an Ignition article are those of the relevant individual author and do not necessarily reflect the opinions or views of Capricorn. Capricorn makes no representation or warranty as to the accuracy, completeness or reliability of any material (including without limitation, any third party authored article or supplier advertisement in respect of which Capricorn merely acts as conduit) included in this edition of Ignition. To the fullest extent permitted by law, Capricorn, its officers, employees, agents and representatives disclaim any and all liability to you or any other person for any loss or damage whatsoever connected with: i. reliance on any material in Ignition; or ii. any inaccuracy, error or omission in any material in Ignition.
CAPRICORN IGNITION JUNE 2022 3
NEWS
CALENDAR of events Western Australia
South Australia
FUTURES COLLIDE II 16th August 2022 GALA DINNER & TRADESHOW 29th October 2022 Registrations open soon
GALA DINNER & TRADESHOW 5th November 2022 Registrations open soon
Queensland FUTURES COLLIDE II 19th to 20th August 2022 GALA DINNER & TRADESHOW 8th October 2022 Registrations open soon
Victoria GALA DINNER & TRADESHOW 12th November 2022 Registrations open soon
New South Wales GALA DINNER & TRADESHOW 19th November 2022 Registrations open soon
Capricorn DINNER & TRADESHOW
Login to capricorn.coop today and select Events to register your attendance. For further information please call our Events team on 1800 327 437 or email events@capricorn.coop
Cooperatives Build a Better World: 2022 International Day of Cooperatives On 2 July 2022, cooperatives all around the world will celebrate the 100th International Day of Cooperatives (#CoopsDay). A decade on from the UN International Year of Cooperatives, which showcased the unique contribution of cooperatives to making the world a better place, this year’s #CoopsDay slogan — “Cooperatives Build a Better World” — echoes the theme of the International Year. “Cooperatives are answering the wake-up call of UN Secretary-General Antonio Guterres, who warned that the world is ‘on the edge of an abyss — and moving in the wrong direction’, and exclaimed that ‘to restore trust, and inspire hope, we need cooperation, we need dialogue, we need understanding’. “ For nearly two centuries, cooperatives have been pulling in this direction. This was amply highlighted at the 33rd World Cooperative Congress, held by the International Cooperative Alliance in December 2021, which focused a spotlight on how their shared identity is moving cooperatives to take action to address the world’s problems,” declared Bruno Roelants, Director General of the ICA. 4 CAPRICORN IGNITION JUNE 2022
The ICA invites cooperators everywhere to spread the word about how our humancentred business model, inspired by the cooperative values of self-help, selfresponsibility, democracy, equality, equity, and solidarity and the ethical values of honesty, openness, social responsibility and caring for others, is building a better world. Operating all around the world, in many different sectors of the economy, cooperatives have proven themselves more resilient to crises than the average business. They foster economic participation, fight against environmental degradation and climate change, generate good jobs, contribute to food security, keep financial capital within local communities, build ethical value chains, and, by improving people’s material conditions and security, contribute to positive peace. “Cooperatives are the only enterprise model with globally agreed principles that rest on a foundation of shared ethical values,” added Bruno Roelants. Marked by cooperatives worldwide since
1923 and officially proclaimed by the United Nations General Assembly on the centenary of the ICA in 1995, the International Day of Cooperatives is celebrated annually on the first Saturday of July. The aim of #CoopsDay is to increase awareness of cooperatives and promote the movement’s ideas of international solidarity, economic efficiency, equality, and world peace. Since 1995, the ICA and the United Nations through the Committee for the Promotion and Advancement of Cooperatives (COPAC) have jointly set the theme for the celebration of #CoopsDay. Through #CoopsDay, local, national and global policymakers, civil-society organisations and the public in general can learn about the contribution of cooperatives to a secure future for all. The ICA calls on cooperators and partners around the world to get ready to celebrate #CoopsDay on 2 July and to show the world how Cooperatives Build a Better World.
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Members rally after devastating floods
Mark said the scale of flood damage differed greatly depending on where businesses were located. Some required just a clean-up, with relatively minimal business interruption, while others had experienced the total loss of their business. The flooding had been unpredictable. Some areas badly affected by the 2011 floods, like Toowoomba, hadn’t been as badly affected this time around. Other areas, like Rocklea, had copped it badly both times. “In Rocklea, on the Saturday, the water had come up to people’s driveways and they thought they hadn’t done too badly,” Mark said. “Then Saturday night it poured and they woke up Sunday morning and they were two metres under water.” Both Mark and Janice said they’d spoken to Members who’d only just taken out flood protection at their last renewal. “They were extremely grateful, so I’m pleased we were able to have that conversation during the last renewal,” Mark said.
Recent flooding in Queensland and New South Wales has seen Australia’s insurers receive more than 180,000 claims, with an estimated total cost of more than $4 billion, the most expensive repair bill from a flood ever recorded in Australia. The flooding of south-east Queensland and New South Wales in February and March was declared a national emergency on 9 March. In three days, greater Brisbane received a record 676.8 millimetres of rainfall. Some areas received in excess of 1,770 millimetres of rain, with flood waters rising over 14m higher than usual. That’s higher than a 4 storey building. The utter devastation of the resulting floods, which saw some towns, including Lismore in NSW, affected twice within weeks, also impacted more than 200 Members protected with Capricorn Mutual. On the frontline, helping Members understand their coverage and get back on their feet, were Capricorn Risk Services team members Janice Boath in New South Wales and Mark Mommsen in Queensland. “For the first week we were mostly getting panic calls from Members, not sure whether they actually had flood cover,” Mark said. “The good news was that the vast majority of the people who were in those high flood zones did have flood cover and we were able to help. “Then the next couple of weeks was basically making sure they understood what was on their protection, explaining how assessors operate, the kind of information they need to supply, and just holding their hand through the whole process.”
As the clean-up continues, Janice said it would be a long time before many of the affected businesses and homes were fully recovered, especially in places like Lismore. She said those who had taken out business interruption coverage were particularly grateful for the added layer of protection, which allowed them to meet their bills and many other costs while they get back on their feet. She said some Members were faced with big decisions about whether to rebuild where they are or to relocate to higher ground. While many Members faced devastation and a hard road ahead, Janice said she’d also been heartened to see the way Members had helped each other during the crisis. She gave the example of Members in the Garden Street area of Narrabeen, who had all helped each other get vital equipment and vehicles (including customer vehicles) to higher ground as the floodwaters approached. If you’re not already protected with Capricorn Mutual, contact a Risk Account Manager today.
Contact Capricorn Risk Services 1800 007 022 I info@capricornrisk.com I capricorn.coop/risk Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197).
COOK UP!
Cook up a storm! If cooking’s your passion we have some fantastic products available just for you. Head to capricorn.coop/rewards and check out the extensive range today.
Kitchen Aid Cordless Handstick Blender
Taste the Difference Air Fryer - 1.8L
Tea Infusion Kit
6 Piece Wave Birchwood Knife Block
Smeg - 50's Retro Style Coffee Grinder
Breville The Smart Waffle Maker
KitchenAid 4 Slice Artisan Automatic Toaster
KitchenAid Design Collection Kettle
*Products subject to availability.
capricorn.coop/rewards Participation in the Capricorn Rewards Program is subject to the Capricorn Rewards Program Terms and Conditions which can be found via the Capricorn website.
AFTERMARKET INDUSTRY REVELS IN HUGELY SUCCESSFUL AUTO AFTERMARKET AND COLLISION REPAIR EXPO The Australian Auto Aftermarket Expo, co-located with the Collision Repair Expo, has returned in spectacular fashion, proving to be a milestone event for the aftermarket industry as it launches into a new era. Across three days, 7 – 9 April, thousands of trade visitors travelled from across Australia and New Zealand to experience all that the country’s premier industry event had to offer. For many, it was the first chance to connect and network in person in nearly three years. And for the first time, Expo-Saturday saw the public join trade visitors to experience the best of Australia’s $25 billion aftermarket industry. “The Auto Aftermarket & Collision Repair Expo exceeded our expectations. There was an incredible buzz across the Expo, having the industry back together. The quality and variety of exhibitors was exceptional and to see the enthusiasm of trade visitors networking faceto-face was truly appreciated by all. The feedback about the Expo has been overwhelmingly positive from exhibitors and visitors,” said Stuart Charity, CEO of the Australian Automotive Aftermarket Association.
by AAAA CEO Stuart Charity, AAAA Board Chairman Mark Pedder, and Allin Towbars Managing Director Penni Donato. Over 270 of the industry’s leading brands exhibited at the Melbourne Convention & Exhibition Centre, showcasing the latest vehicle repair and servicing equipment; parts, tools and accessories; new technology; and trends. The Expo is also where the industry celebrates and recognises excellence in the automotive aftermarket industry across a wide range of award categories. Taking place on Thursday evening of the Expo, the Australian Auto Aftermarket Awards banquet was a record-breaking event, with 888 industry guests enjoying an unforgettable evening at Crown’s Palladium to celebrate the magnificent achievements of industry champions and innovators.
With the theme ‘The Future Is Here’, the Expo’s features were designed around the most comprehensive seminar program in the Expo’s history. Sessions focused on the most important industry topics including Mandatory Data Sharing , the skills shortage and electric vehicles. Other sessions covered business development, digital marketing, customer service, technical topics and much more. “The event set a new benchmark in delivering the most comprehensive and interactive education program ever, which included speaker panels featuring technical experts, workshop owners, politicians, educators, international guests and the new Workshop of the Future sessions. We delivered an unprecedented gathering of expertise and experience to help trade visitors prepare for their future,” Stuart said. The all-new Workshop of the Future Pavilion took the education program to a new level, with daily sessions to help fast-track the automotive industry’s understanding of and transition to, servicing and repairing the future generation of vehicles, covering the ICE and EV car parc.
The Expo had no shortage of entertainment for visitors across three days, including the new 4WD Innovation Zone, appearances by many of the biggest names in Australian motorsport, supercar champions, race car displays, tool and equipment demonstrations, and interactive activities. “Opening to the public on Saturday alongside our trade visitors was a new initiative, which added an exciting vibe and allowed us to showcase the best of the industry to the next generation of automotive technicians. Seeing young attendees utterly enthralled by the stands and demonstrations, and hearing their commitment to joining our pool of talent in years to come was very uplifting,” Stuart said. “I want to thank everyone involved in making this Expo one to remember. Our exhibitors, visitors, industry experts who presented across the weekend, the IEC event team, the AAAA Board, the AAAA team and everyone in our industry who has supported the AAAA and the Expos. I’d like to acknowledge the support of Auto Aftermarket Expo Major Sponsor Repco, and Collision Repair Expo Major Sponsor SAPE Group, and all of our valued partners and sponsors who helped us run this amazing industry event. “We are already looking forward to 2024.”
The Expo was officially opened on Thursday 7th April by Senator Deborah O’Neill, a longtime supporter of the aftermarket industry and the campaign for mandatory data sharing. Senator O’Neill was joined CAPRICORN IGNITION JUNE 2022 7
FUTURE RIDE
GMC TERMINATES HUMMER'S GASGUZZLING REPUTATION ROADSTER, OUTSIDE AND INSIDE What you’re looking at here is an electric Hummer. Yes, Hummer. That most masculine of SUVs—a vehicle inspired by the US military’s Humvee, a vehicle literally created at the behest of The Terminator actor Arnold Schwarzenegger, the ultimate gas-guzzling all-American vehicle that’s about as big as your average beach house—is now electric. If you’re one of those with your petrolhead buried in the sand, denying the future of vehicles is electric, then we regret to inform you the battle has now clearly been lost. You’ve just answered the door to Arnie, agreed your name is Sarah Connor, and been blindsided by the consequences. The argument is over. But can this new Hummer EV really be the electric “supertruck” GMC claims it to be? The first thing to note is General Motors is no novice at electric drive trains. The new Hummer includes the brand’s proprietary Ultium batteries and drive units, which are now several generations into development. What does that get you? 620 kW (830 hp) and 15,591 Nm of torque. That’s generated by a 205 kWh battery pack between the two main frame rails and three motors (two on the rear, one at the front). The range? About 480 km on full charge. It recharges
8 CAPRICORN IGNITION JUNE 2022
pretty fast, too, thanks to an 800-volt DC capability of up to 300 kW. It’s no wimp when it comes to towing, either (up to 3,400 kg). It is, of course, still absolutely massive. The SUV version is five metres long (without the spare tyre), has a 3218 mm wheelbase and (if you count the mirrors) is 2380 mm in width. The pickup version is slightly longer and wider. Good luck getting that into your average city multistorey car parking space! The ground clearance is more than 40 cm, and it rides on 18-inch wheels and 35-inch tyres. So far, so cool. But here’s where (to overcook the Terminator analogy) the Hummer EV gets a little bit “T-1000” compared to the old “T-800”. The Hummer EV has 4-wheel steer, so its rear wheels can turn up to 10 degrees in either direction, allowing the vehicle to drive diagonally at low speeds. It also has what GMC calls “extract mode”, where drivers can add an extra 15 cm or so of height, using the adaptive air ride suspension. Both of those features will be fantastic for offroading. Then there’s all the usual kinds of modern bells and whistles: the surround vision cameras, the digital key, the infotainment system, a whole heap of off-roading widgets, SuperCruise for hands-free driving and automatic lane changing, and some 200 or so customisable features.
As far as we know if you reduce it to liquid metal, the Hummer EV doesn’t reconstitute itself, but at this stage we wouldn’t put anything past GMC. They really do appear to have thought of everything. So, the final question is, will anyone buy it? To which the only answer is, they already are. People seem to be as enthusiastic about the Hummer EV as Schwarzenegger was about the original Humvee. The Edition 1 version of the Hummer EV has already sold out in the US. By April this year about 66,000 people had put in an order for one and, according to reports, most of those orders were from people who’d never owned an EV before. Of those, more than 80 per cent planned to tow or go off-roading in their Hummer EV. Which just might go some way to showing the EV doubters, the “head in the sand crew”, that the impending death of the internal combustion engine might not necessarily mean the death of a fun weekend. When it comes to electric vehicles, judgement day is coming— whether we like it or not. Like Sarah Connor, we all need to be prepared for it. Driving a Hummer EV seems like a pretty cool place to start.
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THE AUSTRALIAN GRAND PRIX MAKES A TRIUMPHANT RETURN
by Paul Marinelli
Following the abrupt shutdown of the 2020 Australian Grand Prix in Melbourne after just one day, more than two long and locked-down years slowly passed by without one of the city’s most exciting international sporting events.
Now take that season-long battle that included several major crashes, including one (at the British Grand Prix) where Verstappen’s car registered an impact of 72G and another (at the Italian Grand Prix) where Verstappen’s car drove over the top of Hamilton’s car — leaving tyre markings on the Mercedes driver’s helmet, among several other smaller skirmishes.
Both the 2020 and 2021 Formula One seasons continued in a truncated form and produced some outstanding racing, particularly last year as the season ended with seven-time World Champion Mercedes AMG team driver Lewis Hamilton and his Red Bull Honda powered rival Max Verstappen tied on points at Abu Dhabi’s final round.
Then we add to this mix the completion of the fourth incredibly successful season of the Netflix “Drive to Survive” Formula One fly-on-the-wall documentary/reality TV series, which has been a global sensation, delivering millions of new fans to the sport. So once the Australian Grand Prix returned as the third event of the 2022 World Championship, the most legendary team in the sport, Scuderia Ferrari, finally returned to race-winning competitiveness in a city with a huge first, second and third-generation Italian community.
We all know the madness that followed, with Formula One’s Australian race director, Michael Masi controversially playing an integral role in how that epic title fight was decided. 1 0 CAPRICORN IGNITION JUNE 2022
All of these factors, combined with Melburnians’ neverending desire for major sporting events, combined to create a perfect storm for the 2022 Australian Grand Prix organisers. All Saturday and Sunday tickets to the event were sold out well ahead of the event, along with all corporate hospitality placements; this even with the addition of several new facilities for the 2022 return of this world-renowned motor racing event. It is hard to believe that this event marked the 26th anniversary of the Australian Grand Prix in Melbourne (albeit with 24 races held) and the two-year wait brought the fans out in droves.
The numbers were truly remarkable, with 55,107 spectators present on Thursday (with no formula one cars on the track), 112,446 on Friday and a staggering 123,247 on Saturday. Sunday’s race day crowd totalled 128,294 fans, making a total of 419,114 for the event. This easily eclipsed the previous record set back at the very first Melbourne Formula One event held in 1996 that saw 401,000 racing fans make their way to the Albert Park Street Circuit.
Contrary to many incorrect media reports following this year’s race, this was not the highest-ever Australian Grand Prix crowd. That illustrious record remains with the city of Adelaide that hosted an amazing total of 520,000 people at the 11th and final Australian Grand Prix held in the city of churches back in 1995. Making the 2022 Australian Grand Prix even more incredible was the vastly improved form of the Scuderia Ferrari team, which saw the sport’s first and only Monaco born and bred driver, Charles Leclerc, race to a dominant victory. This sent the many thousands of passionate Ferrari fans at the event into a red frenzy along with many millions of “Tifosi” all over the world. For Australia, a welcome return to top six form for Western Aussie McLaren team driver Daniel Riccardo capped off a truly remarkable and memorable event, one that all Australians should be very proud of. The success of the 2022 Australian Grand Prix was also proof that the absence of this and other major sporting events had a major impact during the pandemic-induced lockdowns, ensuring that these events will not be taken for granted in the future.
CAPRICORN IGNITION JUNE 2022 1 1
BENDIX BRAKES Diagnosis and rectification advice from Bendix Brakes, manufacturing in Australia since 1955. Put your foot down with confidence. As a vital component of a vehicle’s braking system, discs or rotors are items that should be regularly inspected for wear or damage to ensure ongoing braking performance and safety. While this task will normally be undertaken by the local mechanic or brake specialist as part of a car’s regular servicing schedule, it pays for drivers to be mindful of the symptoms of brake rotor issues.
The symptoms of rotor warping could be as severe as brake pedal feedback during braking, jittery or inconsistent braking, vibration during braking, or more subtle indicators including excessive squealing when braking or even a burning smell. Depending on the source of the problem, the rotors can be machined, a process that uses a lathe to refinish the surface of the rotor, returning it to a flat surface. If the warping is too severe or the rotor is too thin (due to previous machining), the rotor will need replacing.
Given the extreme conditions that brake rotors work under, including extreme heat, high loading and exposure to water, dirt and grit coming off road surfaces, it’s possible for these components to become compromised over time and in between servicing. An intuitive driver will likely recognise some of the early indicators of rotor issues, allowing them to have the braking system checked by their workshop, to ensure optimum performance is restored as soon as possible. Here’s what to look out for and how to treat potential problems. Disc brake rotor warping Warping is where the rotor surface becomes uneven – normally it’s caused by excessive heat in the brakes. Through regular high-load braking situations, the rotors can become glazed from the brake pad materials rubbing off on the rotor at extreme temperatures. Extreme changes in temperatures can also cause warping, for example heavy braking followed by submersion in cold water, such as might be experienced off-road when fourwheel driving. 1 2 CAPRICORN IGNITION JUNE 2022
Cracked rotor In short, causes that can lead to rotor cracking are similar to those that cause rotor warping — excessive heat and extreme temperature changes — but also throw other elements into the equation: the quality of the materials used in making the rotor as well as the manufacturing process. A rotor that does not have the correct metallurgy (the science of producing and purifying metal) will be more prone to cracking. A poor manufacturing process is also a major contributor to rotor cracks. Typically, cheap rotors that have had less development and manufacturing applied will be more likely to crack. For the driver, symptoms to look out for include low frequency vibration during braking and more intense braking shudder, depending
on the size of the crack(s). The solution for cracked rotors? There’s only one: replacement. The Bendix rotor range As a specialist producer of braking systems and market-leader in this field, Bendix offers a range of rotor solutions to suit passenger cars and performance vehicles with its “Euro+ Disc Rotors” and “Ultimate Sports and Performance Disc Rotor”. These quality products have been designed and developed to exacting standards, using high-quality feed materials and the latest manufacturing processes, reducing the likelihood of rotor warping or cracking. High-carbon metallurgy Common to both ranges is Bendix’s highcarbon metallurgy, a technology that improves noise-dampening characteristics and heat dissipation. The higher the carbon formulation, the better the rotor can withstand elevated operating temperatures. Additional benefits include higher wear resistance and durability, while reducing the chance of warping. SWIFTFIT protection For efficiency of installation (no requirement for pre-cleaning), Bendix rotors feature SwiftFit surface protection, an advanced protective zinc coating that helps to protect against corrosion. With uncoated rotors, corrosion can impact the rotor mating with the wheel hub face over time and create vibrations. Drivers who suspect that their rotors may be suffering from warping or cracking should organise an inspection of their brakes by a professional as soon as possible. For more information about the Bendix rotor range, visit: www.bendix.com.au
SPREAD THE WORD...
...about Capricorn and earn 10,000 Bonus Points If you know someone in the auto business who isn’t a Member then now’s the perfect time to Spread the Word. Simply pass on the lead to your Area Manager before June 30 2022, and when they join you’ll get 10,000 Bonus Points as a thank you.
join@capricorn.coop | capricorn.coop | 1800 327 437 The promotion is open to existing Capricorn Members who during the period of 1 May 2022 to 30 June 2022 refer a prospective Member to their Area Manager. Allocation of the 10,000 bonus Capricorn Reward Points (“Member Reward”) is subject to the referred prospect becoming a Member by 29 July 2022. Participation in the Capricorn Rewards scheme is subject to the Capricorn Rewards Terms and Conditions which can be found at: www.capricorn.coop/terms-conditions. The Member Reward is not redeemable for cash or transferable. Prospective Members initially join Capricorn on a trial basis. After successful completion of a trial period and having met the minimum required spend of AUD$12,000 p/a, they may become full shareholder member of Capricorn through the purchase of shares. Shares are issued by Capricorn Society Limited (ACN 008 347 313). No offer of shares is made in this promotion. An offer of shares will only be made in, or accompanied by, Capricorn’s Prospectus and any supplementary prospectus which is available on request or may be viewed at www.capricorn.coop/corporate-documents. Before CAPRIC R N I must G N I be TIO N Jon UN E application 2 0 2 2 1 3 form in or making any decision to apply for shares, prospective members should consider the Prospectus and any supplementary prospectus. Any application forOshares made the accompanying the Prospectus.
25 YEARS YOUNG
NEW ZEALAND'S 25TH ANNIVERSARY 25 years sounds like a long time, but it has passed us by very quickly. It seems only yesterday we were launching into New Zealand with our first Member. Since then Capricorn New Zealand has grown exponentially, and moved from strength to strength. Here are some of the stand out moments from the last 25 years.
NEW ZEALAND'S FIRST MEMBER DIRECTOR New Zealand's first Member-elected Director, Russell Green is appointed as Board Chairman.
CAPRICORN ARRIVES IN NEW ZEALAND
CAPRICORN SURPASSES 1,000 MEMBERS
The first New Zealand Member, joins Capricorn in June 1997, with a NZ$500 share purchase. At the time they only had four suppliers to choose from.
By the end of June 2003, Capricorn has welcomed over 1,000 Members in New Zealand, with one staff member and over 200 Preferred Suppliers.
1997
2003
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2005 CAPRICORN SURPASSES 2,000 MEMBERS
CAPRICORN MOBIL FUEL CARD LAUNCHED
New Zealand's membership grows beyond 2,000 Members and Member purchases exceed NZ$100 million for the first time.
Capricorn launches the Mobil Fuel Card in New Zealand, which has grown to provide Members over $5m of fuel in 2022.
2009
2015
2016
2020
2020
New Zealand Director and former Chairman, Russell Green was inducted into the Capricorn Hall of Fame.
From June 2020, Capricorn Members can now place their Mitre-10 purchases on their Capricorn Trade Accounts.
CAP ezi-parts, Capricorn's parts finding service exceeded 11,000 requests in June 2020.
RUSSELL GREEN INDUCTED INTO HALL OF FAME
2018
CAPRICORN WELCOMES MAJOR SUPPLIERS 2018 saw the Capricorn team appoint new exciting Suppliers and surpasses 4,000 Members.
2018
NEW ZEALAND MEMBERS ENJOY CAPRICORN'S LARGEST CONVENTION
CAPRICORN PARTNERS WITH MITRE-10
CAP EZI-PARTS EXCEEDS 11,000 REQUESTS
2021
NEW ZEALAND'S FIRST CAPRICORN RISING STAR Hailing from Rangiora, North Canterbury, apprentice Ben Brown demonstrated outstanding problemsolving capacity, commitment to excellence and a genuine love for automotive, to be named the 2021 Capricorn Rising Stars, Apprentice of the Year.
New Zealand Members enjoy Capricorn's largest Convention, held for the first time in Salou, Spain.
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Building your network by Jeff Smit Do you have any idea where you and your workshop are heading with the increase in technology in which our aftermarket industry is struggling? The solution you are looking for may well be collaboration. For those like me who have been in this industry for many years, the dramatic changes in vehicle technology that never seem to end are hard to believe, and even more difficult to keep up with. Technology really has taken over the modern motor car — as if you hadn’t noticed. The only logical reaction by workshop owners and their technicians must be that we all have to change the way we approach everything we do during our working day. This applies particularly to the process of diagnostics, which has really become our main trade. We have progressed from those early years of fierce independence and secrecy by learning how to network. This has 1 6 CAPRICORN IGNITION JUNE 2022
made the working day more tolerable, but is that enough? If not, what’s next? The next step has to be ‘collaboration’. But what’s the difference? The broad definition of collaboration is the process of two or more people, entities or organisations working together to complete a task or achieve a goal — just like cooperation. Collaboration has long been one of the main drivers of business success. More often than not, businesses that put in place the right strategies and tools to promote and facilitate collaboration in business and knowledge sharing are more likely to come up with innovative ideas, form beneficial long-term partnerships and move ahead of the competition. Within such businesses, employees are often asked and even expected to collaborate, both internally and externally.
Professional aftermarket workshops need to adopt a program of collaboration now, to cope with the future. In my view, the most meaningful collaboration begins with employees. Internal collaboration involves individuals within the workshop or company working together on a problem car or project. This is otherwise known as teamwork, with workshop owners, managers and technicians playing like a team, even though their skills may be diverse. External collaboration, on the other hand, refers to the exchange and sharing of knowledge and expertise outside the workshop walls, with the aim of helping to solve diagnostic problems. Along with the technicians, different parties can be involved in this process, ranging from suppliers to other workshops who in the past might have been seen as competitors.
External collaboration is something workshops may need to learn because it will be a foreign concept to many. Its process is a bit more complicated and challenging than internal collaboration. Like thinking outside the square, the workshop will need to involve more diverse stakeholders. Strategically, workshops will need to determine which of their challenging job functions might benefit from involving external partnerships and their expertise in order to improve performance and productivity. Once you begin this process, it doesn’t take long to identify the partners that will benefit your business. Usually, those who adopt this form of collaboration will find that the immediate benefits are less stress in the workplace and better productivity, which of course lead to better profits. Collaboration can be taken to another level, with more formal strategic partnerships and alliances. This is where a workshop will have an agreement (formal or informal) with one or more other workshops or businesses. The aim is to share resources and expertise for the sake of the whole partnership. This type of collaboration is the future for this industry. Workshops that form strategic alliances do so to diversify their service offerings, mitigate the risks associated with undertaking new types of work and lessen the impact of skill shortages. The overall effect is to futureproof competent automotive service for all customers. It must be obvious to all that it is no longer possible to undertake all types of automotive repairs under one roof with internal staff. The solution is collaboration. Begin this new road to collaboration by asking yourself three questions: Where are we? Where do we want to be? How do we get there? There are no right or wrong answers, nor is there a onesize-fits-all answer. Answers will differ to reflect the size of the company and perhaps the career stages of the participants, among many other reasons. Collaboration will obviously come in different shapes and forms and could involve very different people who you have yet to meet. And don’t forget that despite the perception that everything can be replaced by digital technologies and artificial intelligence, emotional and social intelligence remain uniquely a human capability. The human element will always be at the forefront of the automotive aftermarket. The future philosophy of your workshop will involve working closely with others, and to do that effectively the talents needed will be empathy, the ability to collaborate and communicate clearly. Exciting times are ahead.
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BUSINESS BUILDING
When will we see autonomous vehicles?
Self-driving cars, or autonomous vehicles (AVs) seem like science fiction to most of us. And it’s exciting to feel like we may be living in Back to the Future or the Minority Report soon. But fully autonomous vehicles may be a little way away. So, when can we expect them? And what’s coming in the meantime? SAE International developed the Levels of Driving Automation to explain the progression from human operated vehicles to fully automated vehicles. The levels detail the features required for each of the 5 stages of vehicle autonomy. Projections from PwC at the 2021 AASA Vision Conference give us a good idea of when we can expect different levels of AVs. Using projections from the US is a good indicator for Australia and New Zealand, as it’s considered that the US market influences development schedules for vehicle manufacturers.
Current hurdles to vehicle autonomy To understand when we will see AVs, it’s important to understand the challenges still to be overcome. As with any new technological development, how quickly we are able to jump these hurdles will impact when we can expect to see high level 4 or 5 AVs appear on our roads. Here are the four key hurdles facing AVs currently: 1 8 CAPRICORN IGNITION JUNE 2022
Technology and cost What happens when the roads aren’t great? What kind of data will AVs require? How much will AV technology cost? And how long will it take to develop? These are the types of questions we ask when we think about the technology required to facilitate AV function.
operated vehicles. And those expectations are going to lead to new challenges for vehicle manufacturers faced with greater responsibilities than ever before.
Standards and infrastructure
A lot of time and effort is currently being expended by vehicle manufacturers to answer these questions. With many manufacturers teaming up with themselves and with Silicon Valley to keep pushing these developments along.
The regulation and infrastructure required for AVs will need to be established and managed. We still need to decide what standards will be required for AVs, who they will be established and changed by, and who is going to enforce them. There is also the question of the infrastructure required for AVs, who is responsible for its development, and who will pay for it?
Installed base
So, when do AVs arrive?
The installed base is influenced by the uptake of AVs by the population and how existing vehicles will be affected. How will AVs interact with human operated vehicles? What will an AV aftermarket look like?
Like most things over the last couple of years, Covid-19 has had a major impact on AV development. As the Bosch Chairman noted in May 2020, ‘a lot of partners are suspending investment in AVs, preferring to invest in existing functions and up to Level 2 autonomy.’
With average vehicle ownership of 10 – 14 years, and over 24 million vehicles on the road across Australia and New Zealand, how quickly will we see AVs penetrate the car parc? In a similar situation to electric vehicles, the true potential will be revealed when most of the car parc are fitted with L4 or L5 systems.
Liability and ethics AVs will require us to ask some difficult ethical questions, with equally difficult answers. We will be asking technology or machines to make life or death decisions. And it’s still unclear and untested who is responsible in an AV accident, or who will be responsible for decisions programmed or made by AVs.
In reality, a fully autonomous world is still a way off. However, in the meantime we can expect to see a drastic increase in L1 – L3 vehicles on the roads. PwC project over 70% of new car sales in 2030 to be for L1 – L3 vehicles, making up over 40% of the total US car parc . L4 and L5 vehicles aren’t expected until after 2030. But don’t fret, PwC expected plenty of testing in the interim. Which means we will start to see some of the technology developed and showcased over the next decade. So, whilst we may not be expecting to purchase an autonomous vehicle in the next few years, we will begin to see what a future autonomous world could look like.
Consumer expectations and societies tolerances for safety are going to be very different with AVs in comparison to human
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MEMBER PROFILES
Seeing life from both sides of the road A couple of years ago David was enjoying the retired life when a previous client approached him with a unique request. They required four dual control vehicles for weed spraying, allowing the driver to safely spray weeds from both sides of the vehicle. Not wanting to miss out on the challenge, David set about ordering some left-hand parts from Denmark and had them flown to Adelaide. He also had to source a left-hand wiring loom from Denmark to provide the necessary OEM plugs and connectors required to connect the instrument cluster and other electrical equipment. Dismantling the vehicle to fit the left-hand components was the easy part, joining the left-hand and right-hand drives together provided a greater challenge. The components necessary to join both sides together had to be specially designed, and hand made. The tricky bit proved to be fooling the ECU. For both sides of the car to work correctly, both the left and right-hand looms had to be stitched together with some changes to ‘deceive’ the ECU into not setting fault codes. Over the years, David has built many different types of vehicles to suit different clients. His business
Automotive Engineering Solutions manufactures mechanical, electrical and hydraulic devices. This can include making modifications to hydraulic tree watering pipe systems, to high pressure motorised water pumping units and even OHS guard shields for operators. To build a dual control vehicle takes an average of 12 weeks. Once everything is complete and working to David’s specifications, the vehicle also undergoes a full road traffic vehicle inspection where it is certified safe before being driven on the road. The tighter controls required by regulatory bodies mean David’s vehicles are as close as possible to OEM specifications.
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3 things to teach every new staff member about customer service Seventy-nine per cent of Members told State of the Nation 2021 they were very or extremely confident about the customer service they provide. But how confident are you that your newest team members are delivering the kind of service your customers expect? We spoke to Disney Institute alum and customer service expert, Chris Smoje to get his customer service tips, tricks and techniques every automotive business owner or manager should be teaching every new employee— especially those not used to engaging with customers.
Be attentive Chris’s first piece of advice is that any employee who engages with customers must be attentive to the customer and their needs. “If I’m being attentive to you (the customer), I notice you, I greet you, I make you feel welcome in the service garage or in the dealership,” Chris said. “But by being attentive, I also make you feel comfortable. And I use the word comfortable deliberately because I’ve been to places before where you’re coming in to drop your car off and it’s actually awkward. It’s maybe 7 a.m., the staff are running between desks, and you’re just standing there waiting for them to notice you, and it’s awkward.” Being attentive is about making a customer feel welcome. • Be on the lookout for customers coming in • Let the customer know you’ve noticed them, even if you’re really busy • Welcome them and make them feel comfortable. 2 2 CAPRICORN IGNITION JUNE 2022
Be engaging
1.
A warm person is genuine. For example, when you say goodbye to a customer, don’t automatically say “have a great day”. It’s what everyone says, so it doesn’t sound like you mean it. Ideally, make your farewell specific to the person: “good luck with your exam”, “enjoy your holiday”.
2.
A warm person shows gratitude. Let’s be honest, your customer would probably rather be anywhere other than waiting in line for a car service. Show gratitude: “I’m grateful you’ve come in early”, “I’m grateful you’ve waited”.
3.
A warm person shows empathy. For the customer, there’s lots that’s inconvenient about taking a car in for any kind of service or repair. Let the customer know you’re doing your best to make it pain-free: “I think I’ve put the car seat back where it was. I hope it’s in the exact same position for you.”
The second piece of advice is for staff members is to engage with the customer. This isn’t about making cheesy small talk; it’s about having a conversation that shows you’re interested in the customer and care about them and their needs. “Taking your car to the mechanic is not like giving your order to a waiter,” Chris said. “Even a waiter probably asks how your day was before they take your order. But a car is usually the second most expensive thing people own, so customers expect more of a two-way conversation with their mechanic or their service centre.” Chris’s advice is, ideally, to remember something about a customer that you can talk about. For example, if they’ve had a baby since they last visited. But you can also ask how their day is going or talk about the weather or the football—whatever you’re comfortable with and makes sense in the moment. Chris’s top tip for great customer service engagement is to make the information you need to deliver a part of the conversation. For example: • “Would it be easier for you if I sent a text or gave you a call to let you know the car is ready?” • “We’ve got a new coffee machine, if you’d like to help yourself before you head to work. It’s free!” • “We’ve been trialling a new brand of oil that’s better for the environment.”
Be warm Lastly, Chris said it’s important to be warm with the customer. “We all know what cold is, what it feels like to deal with a cold person,” he said. “There are three things a warm person needs to be.”
It should all feel natural When you’re onboarding new customer-facing team members, it can be very tempting to provide them with something like a script for dealing with customers. Chris’s final piece of advice is to not be too prescriptive. “What ties all this together—being attentive, engaging and warm—is that it should feel natural,” he said.
N R O C I R P A C
LAST MONTH'S ANSWERS LAST MONTH'S WINNERS 1st Prize - 4,000 points Suburban Mechanical 2nd Prize - 2,000 points Hi Tech Auto Service
Email your answers to ignition@capricorn.coop before the 25th of June. Winners will be selected by a lucky hat draw of correct entries. Please ensure you include your Member number and email address when submitting your entry.
WORD Find the 15 words hidden in the jumble. They could be horizontal, vertical, diagonal or backwards. See if you can find them all!
ANNIVERSARY COOPERATIVE HOIST HUMMER COLLISION BRAKES AUTOMATION CHAMPION
SERVICE NETWORK TYRES AFTERMARKET MILESTONE RISK WORKPLACE
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