Ignition Magazine New Zealand | May 2023

HOW MUCH SHOULD I BE PAYING MYSELF?

Capricorn’s guide to navigating this complex issue.

SERVICING ELECTRIC VEHICLES

A FUNDAMENTAL, INDUSTRY-WIDE CHANGE IS COMING

INVESTING IN NEW

TECHNOLOGY

How do you know if it’s worth the outlay?

David Fraser Group CEO

CEO’s message

If there’s one thing that unites us all in business, it’s wanting value for money. There’s nothing worse than feeling like you’ve been ripped off, realising something was a dud investment, seeing something go to waste, or not getting the maximum bang for your buck.

There are myriad ways we can waste money, fritter away time, leak efficiency or leave money on the table. We can undervalue our services, like not charging for diagnostics. We can underinvest in technology, limping along without the right diagnostic tools. We can underappreciate or overwork our team, leading to high staff turnover. That’s just to name a few classic examples. There are plenty more—like failing to invest and grow our businesses ahead of our retirement, and thereby failing to capitalise on decades of hard work when we sell.

In this month’s Ignition we’re taking a closer look at ways Members can get maximum value out of their business, their investments and their team. At a high level, you could say we’re talking about ways to work smarter, instead of harder. But in reality, what you’ll find between the covers of this month’s magazine are some very thought-provoking articles with actionable advice you can put in place in your workshop as soon as today to help you maximise value.

For example, are you paying yourself enough? We’d all like to take home more, but how did you set the rate you pay yourself? Are you taking enough profits home? We speak to Workshop Whisperer Rachael Evans to get her insights. Rachael also shares her advice on how to work out whether investing in a new piece of equipment or technology is worthwhile. It’s a calculation every workshop makes regularly and there’s nothing more frustrating than spending a fortune on a tool just to see it languishing unused in the corner. We also speak to customer service expert Chris Smoje, author of All-In Culture, to get his advice on how to measure customer satisfaction and turn that into all-important referrals—which is the secret to growing any business in the aftermarket.

Finally, we have another article based on the Capricorn innovation team’s trip to Europe to investigate the impact of EVs on the aftermarket. This time, we’re focused on the servicing needs of EVs, which are radically different to internal combustion engines. For starters, they need a lot less servicing—so getting maximum value every time an EV rolls into the workshop is going to be more important than ever.

There’s lots of food for thought in these pages. If there’s just one idea that helps you maximise somewhere in your business, then I reckon that’s pretty good value.

5

How do you know if it’s worth the outlay?

8 POWERING UP

The future of battery technology and sustainability.

10 IMPROVING TECHNICIAN PRODUCTIVITY

Proven tips to get the most out of your team.

13

WHAT ARE THE SERVICING NEEDS OF EVs?

How will this change your business model in the future?

16

2022 Toyota Corolla

Cross GXL/LTD

The much-loved Corolla crosses over.

24

HOW MUCH SHOULD I BE PAYING MYSELF?

Capricorn’s guide to navigating this complex issue.

David Fraser Group CEO

Nominations open for the 2023 New Zealand Capricorn Director Elections

This year, Capricorn is looking for an energetic and passionate Member to join our board of directors to represent the New Zealand (NZ) zone.

Becoming a Capricorn Director is a fulfilling and rewarding role that involves a significant amount of ethical and legal responsibility. Additionally, it is a perfect opportunity to further contribute to the automotive industry and to govern Australasia’s largest automotive cooperative.

Capricorn, being a member-based organisation, prioritises safeguarding its Members' interests. To achieve this, it appoints Member directors who utilise their industry expertise, skills and knowledge to ensure Capricorn is delivering on its promises and values and accurately reflecting the interests of its Members.

The Capricorn Board consists of three independent directors and six directors who are elected by its Members. The Member-elected directors serve a term of four years.

Nominations

Nominations are now open and close Monday 22 May 2023. The results of the election are announced at Capricorn’s Annual General Meeting in October 2023.

To be eligible as a candidate in the 2023 NZ Director Elections, you need to satisfy all the following criteria:

be a Member in the New Zealand zone; hold 2,000 or more shares* in Capricorn; be involved in a trading automotive or allied business in the New Zealand zone; demonstrate a high level of commitment to Capricorn based on purchases using your Capricorn Account; be of good standing; both within Capricorn and the wider community; not be a wholesale supplier to any automotive or allied business; and not have any actual or potential conflict of interest that will create a material risk to the board or your capacity to properly perform your duties. As a Member, your participation in the election process (as a voter or a candidate), is one of the most important contributions you can make to Capricorn.

*Shares are issued by Capricorn Society Limited (ACN 008 347 313). No offer of shares is made in this publication. 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 capricorn.coop under “Corporate Documents.” Before making any decision to apply for shares you should consider the Prospectus and any supplementary prospectus. Any application for shares must be made on the application form in or accompanying the Prospectus.

HOW TO calculate whether investing in

new technology is

worthwhile

How do you know whether it’s worth investing in a new piece of technology for your business?

Technology is expensive and these days it’s rarely a oneoff capital cost. There are often ongoing operational costs involved such as subscriptions, software updates, regular maintenance, and training—all of which impact your bottom line in the long-term.

So, getting the decision correct up-front really matters. While it’s something every workshop owner grapples with from time to time (18% of Members told Capricorn’s State of the Nation 2022 that staying up to date with technology is something they struggle with), it’s an issue that has come into particular focus today, as our industry prepares for the transition to electric vehicles. How do you know whether an investment is going to pay off for your business?

Calculating the pros and cons of an investment

Automotive business consultant, The Workshop Whisperer, Rachael Evans said when doing the sums on a potential investment in new technology or equipment, you need to take into account factors like the capital cost, training cost, the ongoing operational costs over the lifetime of the piece of equipment, and the expected lifetime of that equipment. Which means it’s time to do some maths.

“You need to actually break it down to, ‘this cost me X amount to purchase up-front and it’s going to cost X amount in software updates over the next however long’,” she said. “Then you can work out, ‘I need to have a charge out fee of $30 on every single service and I need to see 3000 cars a year’. You work it out like that.”

A positive return on investment

Ideally, any new equipment or tool purchase should result in a positive return on investment (ROI). In other words, it should be making you money. For example, if you buy a new diagnostic tool, charge your customers for the diagnostics you perform with it—enough to cover the ongoing running costs and chip away at the capital investment.

There are, of course, other ways technology investments can provide positive ROI, which you should factor into your calculations. For example, if a diagnostic tool halves the time it takes a mechanic (who you're paying $32/hr) to diagnose a problem, it means that they can move on to the next job more quickly. Multiply that by how many hours a week they’re sleuthing out problems, and multiply that by the number of technicians you have doing the same, and it quickly adds up over the course of a year. The efficiency and productivity dividends make the investment a nobrainer. If it meets an existing need but uses fewer resources, then it’s probably a winner.

Consider the intangible benefits

Will the investment in technology bring in more customers? Will it make customers happy? Will it keep them coming back? Will it make your employees happy? Will it make their lives easier, end one of their big workplace complaints or make them more excited to come to work? Will it improve the culture of the workshop? Will it make your life easier? These are harder data points to calculate, but they are worth considering.

If you’re still unsure whether to make an investment, do some more research. Speak to friends and colleagues at other workshops and see if they’ve found value in making the same investment.

Investing in EV-related technology

Rachael said it was common for business owners in the aftermarket to “live too much in the present and not forecasting for the future”.

“We often go for safety and security,” she said.

The transition to electric vehicles is a prime example of an area where business owners across the aftermarket are not doing enough to prepare for the change in technology and the resulting investment their businesses will need.

“There’s a fear,” she said. “We have to overcome a fear to get people to even attend training on EVs. It’s crazy. The fact is this thing is coming and workshop owners don’t know what it’s going to look like for them, and they can’t see how they fit into it yet. “It’s about them understanding that, even if they have no plans to be owning a business in 2030 when things should dramatically have changed here in Australia in terms of the number of EVs on the road, they’re going to have to start the transition.”

In the case of EVs, Rachael recommended investing in education before investing in equipment.

“Then you can see what investments you might need to make financially in the future,” she said. “Don’t be afraid to do that.”

The last word on calculating any investment

Ultimately, whether to make an investment is a decision for you as the business owner. There is always a risk, but there can also be huge rewards— and risks can be mitigated.

“It comes down to, ‘If I have this piece of equipment, or I have this higher skilled person that I need to pay more, then what does that piece of equipment or that person need to generate for me in order for it to make a profit or in order for it to be worthwhile?’” Rachael said.

“As we tell our clients, everything comes down to an equation and a calculation. That’s how you work out if it’s the right thing for you to do. And if you can’t make the numbers work, then you don’t do it.”

Up Powering

The future of battery technology and sustainability

As battery-powered devices become more common in everyday life, manufacturers are investing heavily in developing new battery technologies to improve their capabilities and reduce their environmental impact.

The Evergreen 12-volt battery technology

The 12-volt battery is the most common type of battery found in vehicles today. It has been around for over a century and has remained relatively unchanged in terms of its basic design. As the electrical loads of vehicles continue to grow, new 12-volt battery technologies are being developed, such as incremental 12-volt batteries, 48-volt batteries, and 400-volt batteries. These new technologies can improve vehicle performance, efficiency, and reliability, while also reducing emissions and energy consumption.

Beyond traditional battery technology

In addition to improving the traditional 12-volt, researchers and manufacturers are exploring new types of batteries that offer higher energy density, faster charging times, and increased safety. These new technologies include solid-state batteries, hydrogen fuel cells, and lithium-sulfur batteries, among others.

Solid-state batteries, for example, offer much higher energy density and faster charging times than traditional lithium-ion batteries, while hydrogen fuel cells offer a clean and efficient energy source with long ranges and short refuelling times.

Battery recycling and reuse

As the number of batteries used in various devices continues to grow, we can’t ignore the environmental impact. Automakers and other manufacturers are exploring various recycling and reuse technologies, such as second-life use, recycling and remanufacturing, and material recovery. These efforts can help reduce waste and environmental impact while also recovering valuable materials from used batteries.

The development and innovation of battery technology will be crucial in driving the growth of various industries and improving sustainability in everyday life.

As the demand for new and improved battery technology grows, it’s important for technicians to stay up to date with the latest advancements.

Capricorn Service Data provides access to battery fitment and electrical component locations, and if you are looking for wiring diagrams, guided diagnostics and much more, you can upgrade to the full Autodata service at the introductory price of $2 for the first 30 days*.

Autodata, a leading provider of automotive technical information and solutions, offers a dedicated battery disconnection and reconnection module to provide technicians with all the necessary information for working efficiently and successfully with today’s batteries.

Battery technology has come a long way in recent years, with advancements in materials and manufacturing techniques enabling better performance, longer life, and reduced costs.

*All prices exclude GST. The first month pricing is only available to users who have not had the upgrade in the last 6 months. On completion of the introductory month you will be automatically rolled into a 12-month subscription at full price of the Diagnostic & Repair product charged monthly to your Capricorn account unless you contact Autodata before the end of your introductory period. The use of Capricorn Service Data is subject to the Capricorn Service Data Terms and Conditions available at cap.coop/tc

Improving technician productivity

by Geoff Mutton

It doesn’t automatically mean the workshop is achieving optimum profitability for the hours and effort it puts in. For many it just means working harder for the same result.

The number one reason for this is poor technician productivity, or the proportion of a technician’s work week that is productive and invoiced to customers. A simple example: if your technician worked eight hours and at the end of the day only four hours were invoiced to customers, technician productivity will be 50 per cent.

Technician productivity is obviously impacted by every technician’s skill set but it’s not the overriding factor. Just as important are the internal procedures and workshop culture. Below are some proven tips that will help improve your workshop’s productivity.

Set output expectations

Sales reps, accountants, lawyers and even parking inspectors all have targets they are expected to reach. Automotive technicians should be no different. Start by reviewing all your technicians. After taking into account their qualification levels and any additional responsibilities they have in the workshop, write down how many hours you think they should be able to charge out each day. Make sure the review includes historical data so that your new target is realistic.

Having determined your technicians’ chargeable hours target, discuss it with the staff so they are very aware of the workshop’s expectations.

Record time taken on jobs

I remain amazed by the number of workshops that don’t record the time taken on each job. Some business owners have this warped belief that they know exactly how long everyone is spending on each job. Labour is the most important commodity a workshop sells, so it demands a lot better than a rough estimate.

It’s imperative that all technicians clock on/off jobs or manually record start/finish times. This information can then be used to calculate how many hours each technician has sold each week and also is a means of analysing those jobs on which technicians gained or lost time. Modern workshop software programs should make this a fairly automated process.

Analyse technician labour results and discuss with the team

There is no point recording technician output if you are going to do nothing with it. Each week or month you need to devote the time to analyse every technician’s performance reports. Where appropriate, discuss the results with your team either as a group or individually, so that a mutually acceptable path to improvement can be worked out. Again, modern workshop systems should make it very easy to generate these reports.

From all accounts, auto workshops are extremely busy, with many booked out weeks in advance. This is good news, but being busy isn’t always reflected in the bank balance.

Managing the type of work booked in

The natural tendency is to book jobs on a first-in, first-served basis. Any job is certainly better than nothing, but when you start booking out in advance you will be able to start allocating work to those days that will match the technicians you have available.

For example, a day spent on diagnostic work and timing belts on late-model vehicles will most probably result in junior staff standing around doing little. In this instance leave some space in the diary for general servicing and repairs and only at the last minute fill it up with more advanced jobs.

Estimate hours when taking bookings

Job prices can vary from $50 to $5,000 so the number of jobs you have booked in is irrelevant. Workshops sell labour hours, so this is what you must estimate and monitor when taking bookings.

As each booking is taken, use your experience to best estimate the time it will take to complete the job and any estimated additional work. Stop booking in work only when you estimate that all available technician hours will be fully utilised.

Review vehicle history with the customer

When customers drop off their vehicle it is imperative that the vehicle’s previous history is reviewed and discussed. Very often, items you’ve mentioned last time will be well overdue.

Technician productivity will be significantly boosted if you have the go-ahead on additional items before technicians have started the job, rather than having to report the same problem again and then wait for customer approval or parts before the job can be completed.

Charge for diagnostic time

It’s in a technician’s DNA to fix customer problems by spending whatever time it takes to figure out how to approach the problem before they even pick up a spanner. This is all very noble, but if every minute of this time is not being charged, technician productivity goes out the window.

Diagnostic work must be treated like any other service. You would not do a brake fluid flush for free, so why diagnose a customer’s problem for free? The customer is paying for your expertise, which begins the moment they walk in the door and tell you what’s wrong with their car.

Be up-front with the customer and gain a financial commitment before going ahead. This methodology needs to be applied to standalone diagnostic problems or a routine vehicle service when a customer may have asked for an additional problem to be fixed. A service is a service, and the book time allocated for that service does not accommodate the extra time to investigate why the headlight globe keeps blowing.

Learn to say no

In today’s complex vehicle maintenance world, it is no longer realistic to expect that technicians can do every type of job on every model. This expectation is a recipe for disaster and nothing kills productivity like a job gone wrong. Many of the best workshops I know have learnt to say no and happily refer work on to associates and other workshops. Being realistic means accepting those jobs your workshop is good at, and outsourcing the rest.

In summary, working hard is a given, but working smarter on managing and controlling your technicians’ time is essential for maximising their productivity. Make it your priority and I am sure you will be pleased with the results.

What are the

SERVICING NEEDS

of

ELECTRIC VEHICLES?

As the global automotive market transitions away from the internal combustion engine, many Members have reached out to us with questions about the requirements for servicing EVs, what kinds of servicing will cease to exist and the implications for their businesses as EVs become a mainstream part of the aftermarket.

In late 2022, a team from Capricorn visited the UK, Norway and Sweden to scan the EV market in Europe, which is well ahead of Australia and New Zealand, to see what lessons the industry has for us at home. Kim Radalj, Capricorn’s Chief Innovation & Transformational Officer, was among the group.

Reassuringly, Kim said the study group found there are also no signs of workshops or service work falling in either of the countries visited. Indeed, car demand has continued to grow, with new car sales highly skewed to EVs, even if the aftermarket is still mostly servicing internal combustion engines. While there is still plenty of time to make the transition, the transition is inevitably coming.

“EVs require very different servicing and there are obviously different skills that will be required in servicing those vehicles,” he said. “The key message is that members will really need to think about their workshop and its set up.”

Servicing will never be the same again. The transition to electric vehicles is set to fundamentally change the business model of many workshops in the automotive aftermarket.

Let’s look at the most important findings from Kim and the team.

Up to half of current servicing will no longer be needed

Say goodbye to oil changes. In fact, 30 to 50 per cent of traditional servicing jobs will no longer be required. Given oil changes are a major trigger for service intervals, this could prove a challenge to profits.

While original equipment manufacturers still suggest annual services and are often providing highly itemised service schedules, motorists appear to be questioning the value for money these services provide.

There are, however, still good reasons for regular services. Teslas need their dehumidifiers replaced every few years, along with cabin filters, wiper blades and washer fluids. Cooling systems, like air conditioners, are potentially key servicing needs.

Battery maintenance and replacement is one opportunity for servicing, but these are high voltage components requiring specialist skill and training. Newer kinds of batteries also have a low failure rate, so battery repairs during the useful life of the car within the workshop appear unlikely. This may feel like slim pickings, so far.

Wear and tear in some areas will still create demand for servicing

Tyres, brakes, suspension and charging cables are all likely to need regular replacement, although there is always the chance OEMs will design out issues over time.

The high torque from electric motors, for example, is wearing through rubber compounds in tyres at a faster rate than traditional motors, resulting in higher frequency visits to tyre shops.

Expect higher data access charges from OEMs

Like aftermarket workshops, OEMs are grappling with how to make up lost revenue from servicing and parts. In Europe, while legislation gives workshops access to the data they need, it doesn’t appear to limit what the OEMs can charge which is resulting in higher data charges for mechanics.

“The perspectives shared suggested that this risk is best managed through both vertical regulatory frameworks, like Right to Repair, and through horizontal frameworks, like consumer data access regimes that provide consumers with choice on what data is shared, based on their consent,” Kim said.

While current software updates take considerable time, requiring fast Wi-Fi and internet connections, overthe-air updates like Tesla’s may soon become the industry standard.

EVs are going to change your workshops and your business model

Kim said servicing EVs came with high safety, training and awareness requirements because of the high voltage nature of the vehicles. “It was really interesting talking to those who were servicing EVs, because they had to really think about the spatial considerations and how the cars are moving in and out of the workshop,” he said. “EVs are much quicker to service and that has implications on the workshop floor and, of course, there has to be a safety-first mindset.” Some business owners will not want to make the transition to EVs. Some, especially those in the later stages of their careers, may well close their doors and enjoy a well-earned retirement. But for those with many working years ahead of them, Kim has good news.

“There’s obviously still servicing work to be done, it’s just going to require different skills,” he said. “The skills are very learnable.” The even better news is, you still have time to make the transition.

2022

It was once the biggest-selling car in the world, year after year. But with the world’s car buyers deciding they really need a ute or SUV for that daily drive, the Toyota Corolla has lost the bestselling trophy — for the time being.

After giving us the Yaris Cross (a little honey of a car), Toyota stretched the Corolla upwards to give us the Corolla Cross.

DriveLife got the opportunity to sample both the base GXL model and the top-spec LTD model. Our test would see us drive over 1,100 km in both Corolla Cross models, including our daily commute and a 600 km weekend away.

Want to know how the Corolla Cross performs in all situations, including a cyclone? Read on.

What we like and dislike about the 2022 Toyota Corolla Cross GXL/LTD

What we like What we don’t like

Sheer ease of driving

Practicality

Lane Tracing

Overall dynamics

Standard safety features

Spacious interior

Visibility

Seat comfort

Engine noise up hills

CVT flaring

Bluetooth issues

Tyre noise on coarse-chip seal

What’s in the 2022 Toyota Corolla Cross range?

As with the Corolla Hatch, you can only buy a Corolla Cross as a hybrid. You get to pick from four models:

GX Hybrid: $41,990

GXL Hybrid: $44,990

Limited Hybrid: $48,990

Limited Hybrid e-Four (AWD): $51,990

As of March 2023, Toyota is marketing all Corolla Cross models as being eligible for a Clean Car rebate. Mechanically the cars are identical, with levels of features being the only differentiator, other than the e-Four which is all-wheel drive.

How does the 2022 Toyota Corolla Cross compare to its competition?

Since we did the majority of driving in the LTD model, we’ll use that for our comparison chart. All prices below exclude the refund or additional cost of the New Zealand Clean Car Programme, to learn more visit nzta.govt.nz/vehicles/cleancar-programme/

First impressions of the 2022 Toyota Corolla Cross GXL/LTD

Like the Yaris Cross, the Corolla Cross looks so very different to its hatchback donor. Not in a bad way, but I still find it surprising that Toyota has decided to change the frontal design of its Cross models. In saying that, they’ve altered it to look like a mini RAV4, so perhaps that was their idea the whole time. Our GXL was finished in Blue Crush and it looked excellent in a sea of grey and silver cars driving around. I was unsure of the Safari Green of the LTD model when picking it up, but it grew on me rapidly. It’s not a bright colour but it suits the design of the car nicely. In certain light, it looks battleship grey, in others very green. I like it.

As is expected of a crossover, there is plastic plastered around the exterior to give the Corolla Cross that rough ’n’ tough look. Again, it suits the car. The whole design is pleasing to the eye.

What’s the interior like in the 2022 Toyota Corolla Cross GXL/LTD?

Stepping into the Corolla Cross GXL, you are greeted with spaciousness, especially when you compare it to the Corolla Hatch. While I love the design of the Corolla Hatch, it’s not a practical car, with a boot that’s smaller than the Yaris Hatch. I have no idea how those people renting a Corolla Hatch at the airport managed to get all their suitcases into the boot of that car. Regardless, the Corolla Cross nails the practicality side of things, with plenty of room inside and a far bigger boot, at 380 litres. That boot space expands out to 1,840 litres with the seats down.

It would have been great to see the headliner finished in a brighter colour than black, but overall the car feels so much bigger inside. Helping this is the centre console; after a bunch of cars we’ve reviewed with high centre consoles, the one in the Cross is nice and low, adding to that feeling of space.

The console in the Corolla Cross is surrounded by piano black, as are the AC controls. It was great to see that Toyota has stuck with physical AC controls, instead of switching the AC to be controlled by the touchscreen. The last four cars I’ve reviewed have had their AC controlled by the screen, and it’s far preferable to have physical buttons for this.

The leg room in the rear is very good for the class and would be more than acceptable for a long trip. Rear headroom in the GXL is good, but in the LTD it’s a bit more restrictive, with the panoramic roof eating into headroom at the rear, right where your head is.

Rear seat passengers get access to two USB-C ports, while the front has a single USB-A port and a single 12-volt socket, which is located inside the smallish centre cubby. That’s not the ideal place for a 12-volt socket for your dash cam, but at least it has one. While the centre cubby isn’t large, the glove box is, with ample space to store things you never need.

Switching to the LTD model, the feeling of luxury is instant. Leather seating, a huge panoramic roof, heated front seats, a heated steering wheel and more. That panoramic roof does not open but is covered by an electric cloth blind. With the blind open, it makes the interior of the Corolla Cross feel even more spacious. If I had the budget, I’d be stretching for the LTD model for that pano roof and the other extras.

One of those extras in the LTD model is automatic parking, but Toyota has decided the best place for the button for this is down on the right-hand side of the dash, next to the tailgate button. It’s a little awkward to get to and easy to miss.

The LTD also gets an electric tailgate, but of course, the boot in both cars is identical, as is the infotainment system.

All in all, it’s top marks for the interior of the Corolla Cross, in either GXL or LTD form.

What’s the 2022 Toyota Corolla Cross GXL/LTD like to drive?

Slipping the car into Drive, it was nice to see that Toyota hasn’t gone to a button or dial for the gear change — possibly too much change for Toyota buyers? Regardless, using a lever is so easy. Like other Toyota hybrid cars, you can slip the lever beyond Drive and down into ‘B’ mode, to give the car extra regeneration to charge the batteries while driving down a hill or coming to a stop. You don’t have to use B mode at all, but it does assist in getting some ‘free’ charge into the batteries. Weirdly, putting the Corolla Cross into B mode will start the petrol engine when you take your foot off the gas pedal. I’m sure there’s a good reason for this, but it feels counterintuitive.

Still, on the move, the Corolla Cross is a doddle to drive. In fact, over my 1,100 km of driving, this was one of the highlights of this car; it’s so simple to drive, everything works perfectly together, and the overall driving dynamics mean this is a car that is better than the sum of its parts.

All the controls are simple to use, although I still struggle with cars like the Corolla Cross that put the volume controls on one side of the steering wheel and the track/station change buttons on the other. Even after over 1,000 km of driving, I still went to the wrong side of the wheel at times. Not the end of the world, and quite possibly it’s only me who does this.

Cruising around town or on the motorway, the 2.0-litre engine in the Cross is quiet and subdued. You barely notice that the car has a constantly variable transmission (CVT), and life is good. Again, it’s such a pleasure to drive it’s almost the perfect commuter. If there’s a ‘but’ here, it’s steep hills like Transmission Gully. Head up the steep side of TG towards the Wainui Saddle and the engine will make itself known. It’s certainly not deafening, but it is fairly intrusive under load.

Tyre noise can make itself known on most surfaces, likely due to those Michelin Primacy tyres. Every car we’ve tested with those tyres has issues with tyre noise, especially on coarse-chip seal. It’s a real shame as overall the Primacys are excellent, but are let down in that one respect.

On the other hand, road and wind noise are extremely well-damped, barely making themselves known. On the flat at 100 km/h, the car is relatively quiet inside. Also on the positive side of things, the ride is simply excellent. The Corolla Cross rides beautifully and is marginally upset with things like speed bumps. Huge credit to Toyota for making the ride so good in this car.

If you are using the Cross as a commuter (as I did), visibility is generally excellent. Even with chunky A and C pillars, with a higher roofline and blind spot monitoring (even in the base GXL), you can really see well out of the Corolla Cross.

My daily 40 km commute is a mix of suburban driving, city, then motorway and a bit of open road — so a good mix of conditions. The hybrid system works well here, better than I thought it would, and at the end of my 40 km journey, my EV drive percentage was 40%. Again, better than I thought it would be.

While in the GXL model, I had to applaud Toyota for giving it all their safety features regardless that it’s the base model. That means things like adaptive cruise control, blind spot monitoring, Lane Tracing, and automatic high beams are all standard. Toyota is one of the few brands that add all their safety features to every model of car, and that surely will sway some buyers to their models.

The centre screen is a huge improvement of Toyota infotainment systems from not that long ago. With crisp, clear graphics, good response and an excellent size at 10.5” (in either GXL or LTD) it’s a massively positive move for Toyota. The screen size is perfect for Apple CarPlay and Android Auto (especially after reviewing the Citroen C5 PHEV recently and was well overdue. I guess if there was one thing I didn’t like about the infotainment system, it’s the Energy Flow screen, which shows how the car is being powered at the time. It’s an active display so it’s always changing, but the graphics on this screen alone are a bit of a letdown — chunky and old-school.

The leather steering wheel is identical in both models, and it feels superb. It’s just the right size for the car, too, and other than the aforementioned audio controls, all the other controls on the steering wheel are set out perfectly. You get most audio/screen control on the left side, and adaptive cruise on the right — along with those track/station change buttons. For a while, I couldn’t find any volume controls for your front seat passenger, but eventually, my daughter pointed out that they are under the screen itself. So there are buttons for volume up/ down and power on/off. I would have far preferred a knob for this, but at least these are physical buttons and it’s not controlled via the screen.

It was time to move into the LTD model, a day before heading away to Hawera to work on our project car. I’ve mentioned the interior changes already and this was one of the reasons I chose to drive the GXL first, and take the LTD away on a 600 km drive. I’d rather have a bit of luxury on a long drive if I’m being honest.

I loaded up the Cross LTD on a Thursday night, and then late on Friday afternoon took to SH1 for the 300 km drive north. I have mixed feelings about the performance of the Corolla Cross; it has a 2.0-litre engine AND hybrid assist, so at times I felt it should have gone better than it did. But loaded up with car stuff, I barely noticed the extra weight. I think most Corolla Cross buyers will be more than happy with the performance.

You get three drive modes in the Cross: Eco, Normal and Power. Thankfully, the car remembers your mode so every time you start it, it will stay in the mode you last chose. I wish all cars did this. In both the GLX and LTD models I left the car in Eco mode, and it drove perfectly. I couldn’t really see the point of using Normal or Power modes on a daily basis. In saying that, I sometimes switched to Power mode to pass slower traffic. Passing other cars does highlight a couple of things: that engine noise is prominent and CVT flaring is quite evident. I got used to it, but I was expecting this engine to be a little more refined.

Power mode will really get the car moving along if you prod that accelerator pedal enough, and at times like this it does feel like a 2.0-litre motor. If there was one other reason I was happy I took the LTD away on a long trip, it was because of its all-wheel drive system (AWD). Tootling around town in the front-wheel drive (FWD) GXL is easy and the car handles very well. In fact, on a normal commute or in daily use, I couldn’t feel much difference between the FWD and AWD models. But during my weekend away Cyclone Gabrielle hit and I was very thankful for having an AWD car. The AWD LTD Corolla Cross sticks to the road beautifully, and it feels very planted — even in heavy rain and heavy crosswinds. It was simply not upset by the wild weather outside the car.

Full acceleration from a stop in the wet, and the LTD model will see no drama and no wheelspin; it’s all nicely controlled forward acceleration. Like other times, I used the car’s adaptive cruise control for a lot of my journey to Hawera. Those that know the road from Wellington to Hawera will understand; it’s pretty boring. I also used Toyota’s Lane Tracing feature for this trip, which means the car will assist as much as it can in the steering. I’ve got to say, in a short amount of time, systems like this one have improved hugely. The Cross’s Lane Tracing is very accurate, rarely putting a foot wrong. While you never should, taking your hands off the wheel to test it shows it will do a great job of following a gently winding road, keeping you in the lane. It’s definitely one of the better systems in the market at the moment.

Part of the adaptive cruise control in the Corolla Cross includes route-based speed management. We’ve seen this appearing more and more on cars, where the adaptive cruise will adjust the car’s speed to slow it down for a bend. Like other cars, the Cross’s system is a bit too nannyish and will slow you down to say 85 kmh for a corner that can easily be taken at 100 kmh. You know it’s at play, as a winding road sign appears on the dashboard. It’s a good start, and I’m sure over time this will improve — or perhaps give us some adjustments for this in the infotainment system. While the audio system in the GXL model is acceptable, the JBL system in the LTD is much better. It’s not outstanding, but the clarity at higher frequencies — I expect mainly due to those tweeters at the bottom on the A-pillars — is excellent, and separation is also good.

The seat comfort in either model is very good, and the LTD model’s seats border on excellent. Just the right amount of padding for a 300 km drive, and I didn’t need to adjust the electric lumbar support once.

Body roll is evident if you push too hard on a windy road, but still that Toyota chassis is nicely done. Yes, the Corolla Hatch handles better than the Cross, but it should. The AWD grip of the LTD model is something the Corolla Hatch will never have.

But, it’s not perfect. Other than the engine noise, I had reasonably consistent issues with the Bluetooth connection. Sometimes, the Cross would revert the audio to radio when I got into the car. It happened far too often for my liking, but not always. One day when I was on a phone call, the Bluetooth disconnected itself. No idea why. My phone works well with other cars, so I can only put it down to the Cross.

The sun visors on the Cross only extend halfway down the door, and they don’t slide. This leaves a big gap for the sun to smash your face as you drive. I wish more manufacturers took note of this, as Toyota isn’t alone here.

As mentioned, we covered 1,100 km driving both models, and fuel economy averaged out at 5.1L/100km, which compared well to Toyota’s suggested combined rating of 4.5. While this might not seem mind-blowing, keep in mind it is a 2.0-litre engine pushing this car along, and with our 600 km open-road trip, the hybrid system doesn’t perform at its best. The hybrid system in cars like the Corolla Cross excels around town and in the suburbs.

Summary

The Corolla Cross was a great open-road cruiser, taking everything in its stride, and sitting nicely on the road. Honestly, I could live with this car every day. While the engine noise was surprising, we are hoping this is being looked at. The Bluetooth issues I had drove me a little crazy at times. But still, I thoroughly enjoyed my time with both models. I mentioned it in my review, but the 2022 Toyota Corolla Cross really is a car that doesn’t do one thing fantastically, but it does everything very well. It’s a great crossover and a credit to Toyota. Have

my elf HOW MUCH should I be paying

elf?

Are you paying yourself enough?

As money-related markers of success go, it comes between being profitable and having no financial stress (58%) and being able to efficiently manage cash flow (19%).

But how do you work out just how much you should be taking home in your pay packet each week? How do you know if you’re paying yourself enough? Could you be short-changing yourself and your family, and not adequately rewarding yourself for your efforts? Or could you be overpaying yourself, with potentially negative effects on your cash flow, your ability to respond to crises, or your means to invest?

Being able to pay yourself a healthy salary is meant to be one of the big advantages of running your own business and being the boss. We know from State of the Nation 2022 that for more than a quarter of Capricorn Members, being able to pay yourself a steady wage is considered a marker of success.

HOW MUCH should I be paying my$elf?

What is a workshop owner’s role worth?

To find out how much a workshop owner should be paying themselves, we asked automotive business coach Rachael Evans, the Workshop Whisperer, for her advice.

“In general terms, they should be paying themselves the equivalent of what they could go and earn out in the market for every single thing they do for the business,” she said. “That’s a sixfigure sum, straightaway.”

That’s because when you’re running a business, you’re not just a mechanic. You’re often doing everything from managing the books to doing the hiring and firing to ordering parts and stock to looking after the marketing.

But how do you work out the actual value of your contribution to the business?

Calculating your value to the business

Rachael said when she works with workshop owners, she has them implement a financial management system that helps them work towards a predetermined set of percentages the business should be operating on, including the owner’s salary. Perhaps predictably, those percentages are all based on revenue.

So,

what does that look like in practice?

“Let’s say their revenue is between $500,000 and $1 million dollars a year,” Rachael said. “This would put them into a bracket that means that what they pay themselves, or what’s available to them to receive, is about 20% of revenue. Now that doesn’t mean that they have to pay themselves that, but that’s what their share of the pie is for their pay.”

This percentage is, very specifically, your wage as a business owner. It’s called “owner’s compensation” and it covers all those day-to-day things you do for the business.

Owner’s compensation versus profit distribution

“The other way workshop owners need to be paid is through profit distribution, because salary is just the reward for the everyday work that they do inside the shop,” Rachael said.

“Profit distribution is the reward for the risk they take of owning the business and employing all those people and being the one who has to withstand the market’s ups and downs.”

How profits are dispensed in a business will depend on a range of factors, like the company’s structure, the number of shareholders and the percentages of their holdings, and any profitsharing agreements in place. The amount available for distribution may also depend on any longterm business planning, including scheduled investments in new technology, plant, equipment, property or additional staff.

“If they’re following a financial management system, there’ll be a percentage which will apply to profit sharing, based on their revenue again,” Rachael said.

“If your owner’s compensation is at 20%, then your profit distribution is going to be somewhere between five and 10%, and they should take that quarterly.”

The amount you’re able to pay yourself may also be heavily influenced by the maturity or development stage of your business. If you’re a startup or a new owner, cash flow may be tight. If you’re an established business investing in a growth phase, you might need to take home less money in the short-term. If you’re nearing retirement, perhaps you pay yourself more to top up your savings or your superannuation.

Don’t short-change yourself, but think long-term

It is quite common for small business owners to pay themselves a smaller salary and top up their incomes with dividends from profits. Others may only pay a salary.

“If you’re only taking salary or wage, then you’re actually doing yourself out of the real benefit of business ownership, which is profit distribution,” Rachael said.

Talk to your accountant for the most effective way to structure your income for you, your family and your business, but make sure you’re not undervaluing your contribution to the business. Your accountant will be able to help you maximise your personal income, while ensuring that your cash flow is sustainable and your business prospers in the long-term.

Remember, nearly six in 10 Members told State of the Nation being profitable and having no financial stress was a key marker of business success. In fact, it was second only to doing highquality work (on 60%) when we asked Members what success looked like.

FUN ZONE

SPOT THE DIFFERENCE

5 Differences To Find

Email your entries to ignition@capricorn.coop before the 30th May 2023. Winners will be selected by a random draw of the correct Member entries occurring in West Perth on 1st of June 2023. The winners’ names will be published in the July edition of Ignition. Please ensure you include your Member number and email address when submitting your entry.

Last Month’s Winners

1st Prize - ALPINE AIR TARANAKI - 4,000 points

2nd Prize - PLIMMERTON AUTO SERVICES - 2,000 points

LAST MONTH’S ANSWERS

WORD HUNTER

Find the 15 words hidden in the jumble. They could be horizontal, vertical, diagonal or backwards. See if you can find them all!

BATTERY CHARGE COMPLEX

ESTIMATE EXPECTATIONS

IMPROVING

INVESTING OUTPUT

POSITIVE RECRUITMENT REVIEW

SERVICING

SON

TECHNICIANS

TECHNOLOGY

The new CAP ezi-parts is the easiest and most convenient way to find the parts you need quickly. The enhanced online platform has an extensive parts catalogue and filtering functionality, so the parts you need are now only a few clicks away.