Official Publication of the Motor Trades Association of Queensland
Extreme exercise
Budget wash-up
www.mtaq.com.au
June 2013
FREE TO MTAQ MEMBERS
The indusTry super fund for The auTomoTive indusTry.
www.mtaasuper.com.au motor Trades association of australia superannuation fund pty Ltd (aBn 14 008 650 628, afsL 238 718) is the Trustee of mTaa superannuation fund (aBn 74 559 365 913). you should consider whether or not mTaa super is appropriate for you. The mTaa super product disclosure statement (pds) can be obtained by calling us on 1300 362 415. you should consider the pds in making a decision.
Contents Official Publication of the Motor Trades Association of Queensland Head Office Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 P.O. Box 4530, Eight Mile Plains, Qld 4113 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au Editor Bill Key Art Director Marco Ilinic Industrial Relations Ted Kowalski Michelle Chadburn Policy Kellie Dewar, General Manager MTA Queensland Advertising Enquiries Bill Key Mobile: 0421 057 094 Facsimile: 07 3844 4488 Email: billk@mtaq.com.au Editorial Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777 Subscription Rates (including GST) Australia: $72.60 annually Overseas: $110 annually Motor Trader Publishing Policy
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Motor Trader is the official publication of the Motor Trades Association of Queensland. The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry. The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.
02 From the editor 04 Policy/Viewpoint 05 News
LUXURY IS ALIVE AND WELL JARROD DIGS DEEP FOR TITLE DEFENCE 06 A.P. Eagers: A WELL-PLAYED CENTURY
MTA Queensland ABN: 74 028 933 848
08 MTA Q&A Shalvin Raju
Corporate Partners
Feature 10 END OF AN ERA: Ford looks to a
future without the iconic Falcon
13 Motor news
20130080
ONE OFF BEAMER MINI OFFERS big BANG NISSAN’S BLACK OUT
14 Motorsport Queensland’s Karting
Exports Impress
16 Members' Classic The XW Factor: 1969 FORD XWGT
Members essentials
18 Budget special 23 Divisional news 25 Industrial relations 26 Member profiles 28 Fitness and lifestyle
Down and dirty: Obstacle Course Racing in Australia
31 Travel
Spoil yourself on the Reef: Orpheus Island
32 Industry insight
OLDER WORKERS COULD HOLD THE KEY June 2013 Motor Trader | 1
From the editor
Bill Key Editor
s we enter into the last month of the financial year, many members will be hoping that the next 12 months will prove a more fertile landscape for their businesses. The Federal Budget was handed down a few weeks ago and was met with all the usual lack of enthusiasm that Federal Budgets are met with. With the impending election, this one was perhaps given an even colder reception from most of the public and we investigate some of the Budget pros and cons for members in our Members Essential section starting on Page 19. One man who has only ever known business during the GFC is Bridgestone Select Franchise owner Shalvin Raju. Shalvin started his Woolloongabba business three years ago at the beginning of the financial crisis and is the current Franchisee of The Year; he is our member Q&A this month on Page 8. Outside of the Budget, the big news for May was the decision by Ford to close its Australian motor vehicle manufacturing operations from October 2016. We take a look at Ford’s history in Australia, and why they had no choice but to make the hard decision. The announcement that the Falcon badge would be retired probably cut some Ford fans even deeper, and we trace the history of one of the most iconic Australian cars of all time. Staying with Falcon, our Member’s Classic this month is Ben Chesterfield’s 1969 XWGT. It’s an interesting tale Ben has to tell; he’s actually owned the car twice -with a 19-year break in between - read his story and drool over the great photos on Page 16. And don’t forget, if you have a classic car you would like to see featured in the centre-spread of Motor Trader, contact me, I’m always on the lookout for something special to grace the pages of Member’s Classic, and you’ll have a
A
great souvenir of your pride and joy. Winter in Queensland seems to be the season for fitness fans to get down and dirty with five different obstacle course races being held in the state over the next few months. This new form of extreme exercise is taking the world by storm and people are lining up to plunge into ice baths, crawl through mud and under barbed wire and even be electrocuted, all in the name of fitness. Check out our feature on Page 28. Long time MTAQ members A.P. Eagers celebrated 100 years in business last month with a gala evening at the Convention Centre. Channel Nine personality Karl Stefanovic joined the Apprentice’s Mark Bouris and a host of industry heavyweights at the special event. Another long-term member ‘Vince Vitanza: The Tyre Discount King’ celebrates 50 years in the tyre industry this year, we take a look back at his long career on Page 24. We launch another new section this month called Industry Insight. Every month we will examine an aspect of our industry that is important to our members. There is a skill shortage affecting the automotive industry at the moment, and we investigate the benefits of using older workers to fill void. Our motorsport calendar on Page 15 has a rundown of the big events coming up in the next month for motorheads. Plus we have travel, industrial relations, training, member profiles and latest policy and divisional news all designed to keep you informed and entertained for the month of June. And remember, if you have anything you would like to see in the pages of MT, drop me a line. Hope you enjoy your magazine. Bill Key billk@mtaq.com.au
NEW SIGNS FOR MEMBERS
The signs are 900mm x 600mm aluminium composite. Buy 1 for $65 (plus p/h) or pay $60 each for two or more. Get an edge over your competitors: contact the stationery department to order on 3237 8777 or by email stationery@mtaq.com.au.
We have just received new stock of our large MTA Queensland metal signs. These signs will identify you to customers and passing traffic as a trusted MTA member and are a great way to attract business.
2 | Motor Trader June 2013
AUTOMOTIVE APPRENTICESHIP MENTORING PROGRAM. The Apprenticeship Mentoring Program seeks to improve Australian apprenticeship retention rates through targeted mentoring and assistance to all 1st year automotive apprentices.
For many individuals, starting an apprenticeship is the first time they have been in industry and this can mean they need additional guidance and support to help them through. Mentoring support aims to improve the apprenticeship experience for both apprentices and employers in a more sustainable way. An apprentice mentor can be a great companion through the early stages of an apprenticeship. To contact your nearest mentor and find out what they have to offer, visit maapmyfuture.com.au or call the MAAP My Future national hot line on 1300 587 756.
www.facebook.com/MaapMyFuture
MAAP My Future is an Australian automotive industry initiative proudly support by:
This National Automotive Industry Mentor/Adviser Project is funded by the Australian Government Department of Industry, Innovation, Science, Research and Tertiary Education through the Australian Apprenticeships Mentoring Package. The views expressed in this document are those of Auto Skills Australia and do not necessarily reflect the views of the Australian Government or state and territory governments.
Policy/Viewpoint
I
Kellie Dewar General Manager MTA Queensland
like surprises - nice surprises, that is. And this month has provided a pleasant surprise for members with the Reserve Bank lowering the cash rate by 25 basis points to a record low of 2.75 per cent at its May meeting. It was most timely, particularly as the decision followed a 0.4 per cent downturn in the March retail sales. Pleasingly, all the banks passed this cut on to customers. The good news of the interest rate cut was not reflected in the May 2013 Westpac Melbourne Institute Index of Consumer Sentiment. It fell 7 per cent from 104.9 to 97.6 meaning that “pessimists outnumbered optimists” for the first time since October 2012. The general view on the cause of this downturn in confidence was the negative response to the Budget. In our Federal Budget submission we asked that the 2011-12 initiatives for small business continue. I’ve checked the Budget Papers and with the Australian Taxation Office and confirmed that: • The tax relief for companies that report a loss through the introduction of a loss carry-back continues. From 1 July 2013, companies will be able to carry back up to $1m worth of losses against tax paid up to two years earlier; • The small business write-off on any new business asset worth up to $6500, for as many assets as they purchase continues; • The small business write off of the first $5000 of a motor vehicle continues. The remainder cost can be pooled and depreciated at 15 per cent in the purchase year and at 30 per cent in other years. Find out more about the budget and how it affects you in our budget coverage starting on Page 19.
Review of the Franchising Code of Conduct
MTA Queensland had significant input into the Australian Motor Industry Federations (AMIF) and the Australian Automobile Dealers Associations (AADA) submissions to the Review of the Franchising Code of Conduct. 4 | Motor Trader June 2013
The final report was released on 21 May. The report recognised that franchisees in the retail motor trades invest significant amounts of capital in their franchise businesses and require a reasonable period of tenure to recoup their investment. Additionally, the report noted that the motor vehicle dealership sector franchise agreements were often evergreen (they have no fixed terms). The trend over time has been that these agreements have now been replaced with fixed term agreements, some of which are as short as 12 months in duration. As a consequence, a key recommendation is that “An analysis of the impact of a minimum term and standard contractual terms for motor vehicle agreements should be undertaken prior to a future review of the Code”. While positive, it is unfortunate that this will not be considered for another five years.
Small Business Strategy and Action Plan 2013-15
In my in-tray was the Queensland Business Strategy and Action Plan 2013-15. It outlines government policy directions and actions for the next two years. Members can access the plan online www.business.qld.gov.au.
Australian Taxation Office and debt recovery
I understand the Australian Taxation Office is undertaking a campaign to recover outstanding tax and superannuation debts from small businesses. Data from the ATO showed that outstanding tax and superannuation debt from small businesses with an annual turnover of less than $2m was $10.17b as at June 30 last year and $9.6b as at December 31.
Drive offs
Fuel theft is now a financial hazard for our Service Station and Convenience Store Association Members. The escalation in drive-offs has forced three more Townsville service stations to require prepayment of fuel between
6pm and 5am to stop fuel drive-offs and prevent car thieves fuelling up and driving off in stolen cars. For the last financial year 201112, there were 11,849 thefts across Queensland. In the five years from 2007-08, drive-offs reported to police have almost doubled. Clear up rates for solving petrol drive-offs averaged just fewer than 43 per cent over the past five years. In 2011-12 police solved 5254 drive-offs equating to 44 per cent of the total 11,849 thefts. We continue to work with key stakeholders to make sure this issue gets the attention it deserves.
News LUXURY IS ALIVE AND WELL Sunshine Automotive GROUP teamed with Grant Torrens Marine last month to host an impressive display of luxury cars and boats at the 13th annual Grant Torrens International Marine Luxury Lifestyle Show. Over $100 million worth of the finest luxury motor yachts, aviation, fashion, jewellery and exotic cars available in Australia featured at Sovereign Islands on the Gold Coast. Thousands of people attended the four-day long event to witness big boys (and girls) toys at their best. Sunshine Aston Martin had eight of the iconic marque on display including the new DB9, Vantage S, Vantage V8, Rapide, DBS and two very special Vanquishes, one floating on the water. For the girls, Calleija Jewellers displayed $2m worth of diamonds. 150 people attended a luxury cocktail party on the Saturday night as guests of Sunshine Aston Martin, Princess Yachts and Calleija Jewellery.
Ford Australia – decision to cease manufacturing vehicles in Australia from October 2016
Ford Australia’s recent decision to cease production of motor vehicles in Australia from October 2016 is grim news indeed. There has been talk that this would occur for some time but the hope was economic circumstances would enable it to have a long-term future in our nation. The announcement that Ford Australia had incurred a $141m after tax loss for the 2012-13 financial year and $600m over 5 years makes it clear that it was a business decision that could not be avoided. No matter how the decision is rationalised, there are consequences for the employees and small business suppliers of vehicle components. There is also the loss of the skills and expertise sets associated with motor vehicle manufacturing. At least Ford will retain a significant presence in Australia with a staff of 1500 in product development roles thus continuing its 90 year involvement in the automotive industry. Read more about the closure in the piece on page 10.
Our new Editor
Our beloved Motor Trader magazine has been given a makeover. Bill Key, our new Editor is introducing new features and making it a very interesting read. I hope you like it too. The deadline for my column has come on day two of my visit to members in North Queensland. I’m reluctant to ask Bill for an extension while on the road, so I’ll report on the visit next month. Take care.
JARROD DIGS DEEP FOR TITLE DEFENCE
than his second place last year and grab the prestigious Australian title. Jarrod is dealer principal at Future Sport Motorcycles in Townsville.
Earlier this year Motor Trader featured a story on MTAQ member and Supermoto motorcycle racer Jarrod Koppe from Townsville. MT is happy to report that Jarrod successfully defended his Queensland Supermoto title last month, but he did it the hard way. After the first round Jarrod was sitting in fourth place with just five points splitting the top five riders. “Everything just came together and went well for me in the second round,” said Jarrod. “I managed to win six races from eight starts and that got me the title again.” Next on the calendar for Jarrod is the national competition in September where he is hoping to go one better June 2013 Motor Trader | 5
News
A WELL-PLAYED CENTURY Brisbane icon celebrates 100-year milestone.
I
n 1913 Henry Ford commissioned his first assembly line, launching automobile mass-production as we know it. In that same year, A.P. Eagers opened its doors for business. Last month the iconic business celebrated its centenary in style with a gala black tie dinner at the Brisbane Convention Centre. Channel Nine personalities Karl Stefanovic, David Gyngell and Leila McKinnon joined the Apprentice’s Mark Bouris and a host of industry heavyweights at the special event. The past 100 years have witnessed tremendous changes in all aspects of life and A.P. Eagers operations have continued to grow from strength to strength.
6 | Motor Trader June 2013
A.P. Eagers Managing Director and CEO, Mr Martin Ward, said that successfully trading for 100 years is a major achievement for any business, particularly in an industry that is itself not much older. “I feel privileged to be associated with this Australian commercial icon that has achieved many years of impressive growth,” he said.
“The night raised
over $200,000 for AP Eagers Foundation and its beneficiaries.”
“We’ve paid a dividend every year since listing on the stock exchange in 1957, and now we proudly employ over 3000 Australians, operate 93 dealerships across five states, represent 41 vehicle brands in Australia and enjoy sales revenue in excess of $2.6b per annum.” Mr Ward attributes A.P. Eagers long-term success to its ongoing focus on five key stakeholder groups – customers, partners, employees, shareholders and the communities in which we live and operate. The company adopted the theme of ‘100 Years Driven Together’ for their celebrations to acknowledge the shared journey with their key shareholder groups. “By responding quickly to
the changing environment and following our ‘optimisation for all, not maximisation for one’ approach, we’ve remained in good stead for our customers, partners, employees, shareholders and the community.” At the centenary celebration dinner the company launched the A.P. Eagers Foundation that will support and channel existing and future philanthropic efforts of the organisation. “We have a proud tradition of contributing back to the community and what we have done now is formalise the A.P. Eagers Foundation so we can better support worthwhile causes within our community well into the future. The Leukaemia Foundation and Variety the Children’s Charity will be the initial beneficiaries of the A.P. Eagers Foundation,”said Mr Ward. In commemoration of this centenary milestone, the company also published a hard cover collector’s book ‘A Driving Force’, which chronicles the company’s growth and achievements over the past 100 years. The night raised over $200,000 for AP Eagers Foundation and its beneficiaries.
(L-R): Karl Stefanovic, Janelle Wojtowicz and Stacey Henschell
Seated (L-R): Leila McKinnon, David Gyngell, Mark Bouris, Nick Politis and Diana Davison-Ward Standing (L-R): Peter Newton, Mark McInnes and Martin Ward
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June 2013 Motor Trader | 7
QA
MTA &
MT: What made you want to go into the tyre industry? SR: I went to uni straight from school and deferred after one year of an engineering course, much to my parents despair, and I never went back. I decided I wanted to be an apprentice mechanic. I had always wanted to go out on my own and give it a go in a business, so after many years in the mechanical trade I started looking about for a business that I thought I could see myself being involved in for the next 20-odd years. I looked at many different ideas; not just in the motor trade and I did a lot of research. I also asked a lot of people for advice and overwhelmingly I was told I should do what I know, so I didn’t spend a lot of time learning something completely new. I had experience in the motor industry and like so many people in our industry I love cars. The model that Bridgestone had just seemed to fit me really well, it’s very customerorientated. The more I talked to the people from Bridgestone, the more I liked the way they came across. More than anything else it was the feeling I got from the whole group. So the tyre industry was the opportunity that stood out the most for me when I was looking at many different opportunities. MT: You are Bridgestone’s current Franchisee of the Year, what’s your secret? SR: I have been asked that by a lot of people, and the best way to answer it is to say, “The secret is, there is no secret.” There is no magic formula; it’s being open to advice, and being prepared to ask for advice. I have always found that if you’re prepared to ask the questions, people are
Former apprentice mechanic Shalvin Raju took over the reigns of the Woolloongabba Bridgestone Select franchise just three years ago. After only 18 months he was awarded Bridgestone’s coveted Franchisee Of The Year. prepared to give you the answers. Even competitors, there is no real secrecy in this industry. However a lot of people are worried about asking for help, because they might look weak. I try to learn from other people’s mistakes, to avoid making them myself. In saying that I have made a truckload of mistakes, but I made very few of them twice. I’m also lucky to have a very supportive partner, who understands some nights I might come home at midnight; that sometimes my dinner just has to stay in the oven. I’m also a firm believer in hard work and customer service. We make a really conscious effort to make every customer feel like they want to come back. I feel very proud when a customer tells me they had great service from my team. We were the youngest store to be awarded Franchisee Of The Year, and it took me totally by surprise. It was so surreal; it was a justification for all the hard work we put in. MT: What does the Bridgestone brand mean to you? SR: The brand was a big part of my decision to take up the franchise opportunity. I had a pretty good independent view from working in the motor industry of what brands I would like to be part of. Bridgestone is an easy brand to sell, because you don’t have to sell it. So many people come into us and say “I want Bridgestone, because I have had them for so long; they have saved my life; or they have got me out of trouble.” And the best thing for me is I can go home and sleep easy knowing that however many tyres we have supplied on that day, whether it’s Mum’s car, Dad’s car, babyseats in the back,
“I try to learn
from other people’s mistakes, to avoid making them myself. In saying that I have made a truckload of mistakes, but I made very few of them twice.”
whatever, you know when they need those tyres to do the right thing, they will. It’s a brand I wanted to work with because I held it in such high regard before I even got into tyres. MT: What are your plans for the future of the franchise? SR: Everyday we are looking at the bigger picture for the business. We have really worked hard in the past nine months on systems. This was the first business I owned and even though I got a lot of guidance, I also did a lot of stuff off the cuff. I was always here, customers were asking for me personally, and I realised I had to make the business bigger than just me. So we started working on putting systems in place, getting the right staff, getting them trained properly and giving them the tools to give me the results I wanted. The plan for the future is now to potentially expand into more sites, and steady containable growth. MT: Your franchise also does mechanical, how much of your
business is mechanical related compared to tyres? SR: We now have the Bridgestone Auto Service, and the idea is to give people the brand recognition that we not only do tyres, but we can also service their car. With my background and our qualified mechanics on site, a very large proportion of our work is now mechanical. We have plenty of crossover, people come in for mechanical work and end up buying tyres and come for tyres and get a service. It’s about becoming a one-stop shop, because time is so important to people, they don’t want to run all over town to get things done, it’s easier for them to get it all in one place at one time. MT: The GFC has hit the whole country hard, how have you found it in South East Queensland? SR: I started our business bang in the middle of the GFC, so when I hear some of the guys talk about the glory days when it was easier, I never saw those days, I have only ever known the GFC. So from that perspective I look at we can only go forward. We have had significant steady growth over the three years. We had to make it work. I try not to be too influenced by everything else I just try and do the best I can, and keep it business as usual every single day. The GFC is the normal for us. MT: What do you do in your spare time? SR: I have been working so hard over the last few years that I now really value my spare time. My wife Jaclyn and I have just had our first child. Boston is only 4-months old and I just love spending all my spare time with my family. Making sure we get quality time together is very important. June 2013 Motor Trader | 9
END OF AN ERA Ford looks to a future without the iconic Falcon and no Australian manufacturing.
F
ord’s announcement last month to close down its Australian motor vehicle manufacturing operations from October 2016 shouldn’t have surprised anyone. The company has been producing cars in Australia since 1925 but it posted a $141m loss for 2012, on the back off a $290m loss in 2011 and a total loss over the past five years of $600m.
No company can continue to record such figures without making drastic changes to its production process. In fact Carsguide reported that not even a staggering $2b, double the $1b in taxpayer assistance received over the past 10 years, would have been enough to make Ford’s manufacturing operations viable in Australia. Unfortunately for Australian Ford workers this will mean 1200 job losses from its engine plant in Geelong and vehicle assembly plant at
in Australia 1904 First Ford car imported to Australia.
1930 Fremantle assembly plant opened.
1919 Ford branch office opened in Melbourne.
1934 World's first coupe utility, Model 40, designed and built by Ford Australia.
1925 Ford Motor Company of Australia formed. Model T production starts and assembly plants are opened in Geelong, Adelaide and Brisbane. 1926 Manufacturing and assembly plants opened in Geelong, Adelaide and Brisbane.
10 | Motor Trader June 2013
1960 Full range of Falcon sedans and wagons introduced. 1961 $31m expansion plan announced.
1936 Sydney assembly plant opened.
1962 100,000th Falcon produced.
1958 Announcement of $37m expansion.
1963 $27m expansion plan announced. Ford Sales Company of Australia Limited established.
1959 Broadmeadows car assembly plant opens.
Broadmeadows, and countless more from related industries. The Australian Government will contribute $30 million and the Victorian Government $9 million to structural adjustment programs to support the economic development and diversification of the Geelong and northern Melbourne regions. Ford president and chief executive officer Bob Graziano said Ford Australia will work with governments to see how it can contribute to a transition package for workers but
1972 XA Falcon – first all-Australian designed Falcon – introduced. 1980 Ford announced $300m investment program.
stopped short of saying how much Ford might contribute to the multimillion dollar government package. “All of us at Ford remain committed to our long history of serving Australian customers with the very best vehicles that deliver cutting edge technology at an affordable cost,” said Mr Graziano, “Unfortunately, due to challenging market conditions we are unable to do that longer-term while continuing to manufacture locally.”
1998 Brisbane assembly plant closed. 2007 Research & development Centre opened in Geelong.
1985 Record sales of $2,069b (170,811 units) for after-tax profit of $103.5m.
2009 New Fiesta released, Ford announces $230m new investment for efficient and environmentally friendly engines.
1993 Falcon top-selling vehicle and Ford No.1 in passenger sales, No.2 overall.
2011 Ford cuts shifts of 1500 workers to three days per week.
2012 A $103m Government lifeline secures manufacturing in Geelong and Broadmeadows until 2016. 330 jobs cut in Victoria. 2013 Ford announces all production within Australia will cease by 2016.
Source: ABC News
June 2013 Motor Trader | 11
The company announced that given the changing dynamics of the auto industry, a number of business scenarios were reviewed during the past year to determine the next steps for Ford’s Australian business. All viable alternatives were evaluated as part of the process including manufacturing various types and combinations of vehicles for local sale as well as the viability of a significant export program. The scenarios investigated also included varying levels of government support, manufacturing cost reductions and productivity improvements. Australia has annual sales of approximately 1.1 million new vehicles, and customers have access to more than 65 brands and 365 models available for sale. This makes Australia one of the most competitive and crowded automotive markets in the world.
“First introduced in 1960, the
Falcon has been the flagship of the blue oval in Australia, and at its peak in 1995 sold about 81,000.”
Ford Falcon The first Falcon sold in Australia was the XK series, introduced in September 1960. It was initially offered only as a four-door sedan, in both Falcon and Falcon Deluxe trim levels. The XK was basically a right-hand drive version of the North American model, although many dealers often included modifications such as heavy duty rear suspension and larger tyres. A station wagon was added to the range in November 1960, and further expansions to the range appeared in May 1961 with the addition of utility and panel van body styles. Some local design changes occurred in 1962 with the XL, including a Thunderbird roofline. As improvements to reliability and durability took place, sales gradually started to increase
12 | Motor Trader June 2013
“Given the fragmented marketplace and the low model volumes that result, we decided that manufacturing locally is no longer viable,” said Mr Graziano. The announcement that the iconic Falcon badge will also cease to exist after late 2016 is enough to make die-hard Ford fans weep. First introduced in 1960, the Falcon has been the flagship of the blue oval in Australia, and at its peak in 1995 sold about 81,000. Last year that number had dropped to just over 14,000 sedans. During those halcyon days of Australian automotive manufacturing, the only family car to own was a big sedan and Falcon battled with Holden Commodore for supremacy in the suburban heartland. That is no longer the case with most families now opting for five, six or seven-seater SUVs capable of carrying the kids’ bikes, camping equipment, tow a boat, carry the groceries and do it all while being as easy to drive as a small hatchback, with economy to match. Ford reports it still has aggressive plans to introduce even more new products for Australian customers – including a 30 per cent increase in the number of new vehicles offered to Australian customers by 2016. That is in addition to already announced new versions of the Ford Falcon, Falcon Ute and Territory, as well the new Ford Kuga, Ranger and Focus. “We will be introducing a number of exciting new vehicles and technologies during the next few years that will excite our Australian customers,” said Graziano. “The breadth of our line-up will increase by more than 30 per cent, ensuring we continue to offer our customers an outstanding range of cars, SUVs and light trucks long into the future.” Perhaps instead of retiring the legendary Falcon badge, Ford could create a new hybrid seven-seat SUV called the Falcon. After all, Falcon utes, panel vans and station wagons all had a great following and were in essence the embryo of today’s SUV revolution. Of course even this would still need to be manufactured off-shore because the reality is, building in Australia would be too prohibitive.
The XM, released in 1964, was the first Falcon with an Australian-designed body; the rear taillights were raised for local conditions and the front end received a full-wrap chrome grill and surrounds. The next model, the XP won the prestigious Wheels Car of the Year award and a 3-speed automatic progressively replaced the 2-speed and front disc brakes were introduced as an option. Over the next 40-odd-years the Falcon went from strength to strength, with the legendary XY GTHO of 1971 still regarded as one of the most recognizable and desirable cars in Australia. In 1972, the XA became the first all Australian designed Falcon and the love affair with the Australian motorist became even stronger, with the famous saying ‘Win on Sunday, Sell on Monday’ creating
a generation of Ford versus Holden competition between neighbors, friends, work colleagues, even family members. Famous names like Jane, Firth, Moffat, Geoghegan, Goss, Bond, Johnson, Lowndes, and Ambrose have all piloted Falcons to success on the race track and entertained the Australian public with a uniquely Aussie car, which will remain in the hearts of motoring enthusiasts long after the October 2016 deadline. And the race is already on to try and secure ownership of the last ever Falcon. Carsguide has reported that Ford fans are rushing dealerships to buy one of the last Falcons before the model is axed, with last month's announcement “bringing buyers out of the woodwork” rather than causing an expected drop in demand.
Motor news MINI OFFERS big BANG
ONE-OFF BEAMER
two design teams have created a new automotive persona brimming with character and ready to join the highend luxury class while still sporting the distinctive signature of Pininfarina. “When two such tradition-rich and experienced brands join forces to turn a vision into reality, something utterly new and exciting emerges. From start to finish, this project was defined by a mutual respect for the identity of the other company,” said Fabio Filippini, Head of Design at Pininfarina.
NISSAN’S BLACK OUT
Metallic black forged alloy 20-inch RAYS six spoke wheels are superlightweight to reduce unsprung weight, while also featuring knurled beads to help prevent tyres moving on rims under hard acceleration. “The GT-R Black Edition has already proved popular in other markets, so we are pleased to introduce this exciting model to Australia,” said Nissan Australia's MD and CEO William F Peffer Jr. The Nissan GT-R Black Edition has a manufacturer suggested retail price of $182,500 (estimated drive-away price of $199,990*) and is available from authorised Nissan GT-R dealers from June.
BMW has joined legendary design company Pininfarina to create an elaborate one-off coupe. The BMW Pininfarina Gran Lusso Coupé, is the end product of two companies joining forces to bring an elaborate idea to fruition. The Gran Lusso represents a unique interpretation of a luxurious BMW Coupé as seen through the eyes of Pininfarina. Working in close consultation, the
Nissan has confirmed that a new edition of the all-conquering GT-R will be available in Australia from next month with the introduction of the Nissan GT-R Black Edition to the Australian market. The Black Edition sees the addition of some striking features such as an impressive carbon fibre rear spoiler and red and black interior treatment. Specially-commissioned Recaro front seats, featuring red leatheraccented trim, offer ergonomic support and comfort for both track days and the daily commute.
The limited edition Mini John Cooper Works GP has been hailed as the best performance car under $100,000 in Motor Magazine’s annual Bang for your Bucks awards. The powerful pocket rocket proved its racetrack credibility and stole the BFYB crown from an impressive line-up of four, six and even eight-cylinder vehicles. One BFYB judge described the JCW GP as the “most talented Bang winner in ages”, while another dubbed it the “best Mini I’ve ever driven, especially on a track”. The Mini JCW GP arrived in Australia earlier this year and has received a red hot reception from the general public and motoring media alike, it was designed to shine on a racetrack and is the fastest production Mini ever built. BMW Group Australia managing director, Phil Horton, is thrilled with the JCW GP’s win. “We’re absolutely delighted to win Motor Magazine’s 2013 BFYB award,” Horton said. “Our entire Mini range – including the original hatch and the just released Paceman – are renowned for being tons of fun on the road, as well as on the race track." The 2013 Bang for your Bucks incorporated two full days of intensive track testing by a group of the most experienced and knowledgeable road testers in Australia.
June 2013 Motor Trader | 13
Motorsport Chris Hays competes in Germany
Queensland’s Karting Exports Impress Gold Coast kart racer Chris Hays made a serious impression on the bosses in the world karting scene when he consistently ran inside the top ten during his European debut at the Wackersdorf circuit in Germany last month.
H
ays and fellow Queenslander Jason Faint contested the opening round of the CIK-FIA European KZ2 Championship with the Energy Corse team, the outfit that also runs the Lotus F1 Junior Team. No less than 97 drivers, representing more than 20 countries, lined up at the event, with only the top 34 making it through to the all-important final. Such was the intensity of the competition; the fastest 87 drivers were separated by less than one-second during qualifying around the 1222m circuit. After setting the 41st fastest time on Friday morning in qualifying, Hays finished his six heat races with four top ten results. Despite failing to finish his final heat race due to an incident with another competitor, the reigning Australian Champion was classified 33rd in the standings entering the final stage. 14 | Motor Trader June 2013
“Over here (in Europe) it is a
different world in go-karting, it is a massive field of young drivers who are up and coming and always trying to make their mark�
Overcoming an opening lap incident in the final, that dropped him to 26th, Hays fought back to record lap times as quick as the leaders to charge his way up the order to finish 15th. Unfortunately, a post-race penalty of 10 seconds for contact with another competitor saw him classified 23rd in the final standings.
“Over here (in Europe) it is a different world in go-karting, it is a massive field of young drivers who are up and coming and always trying to make their mark. To be able to show that Australian drivers can mix it with the best from all over the world is great,” said Hays. “During the heat races, I was continually learning and coming to grips with everything but still managing some strong top ten results, which was very encouraging. “I learnt so much over here this weekend, I definitely improved my driving even more and really can’t wait to come back to Belgium for round two.” While a spin on the opening lap of his pre-final may have ended Faint’s run at the event, the Gladstone driver was pleased with his progress against the worlds’ best. “It is very hard to finish races here with karts going in all directions at times, it is pretty cut throat – especially when you don’t qualify up the front,” said Faint. “From where I qualified (71st) to where I was in the pre-final, it leaves me with a fair bit of mixed emotions. At the start of the pre-final, I came from 33rd on the grid to be running just outside the top 20 on the opening lap. “I then went for a move on turn five and got spun around. The impact left me with a bent axle, I managed to restart and cross the line 31st. “Overall, I think I’ve learnt more this weekend than any other race that I’ve competed in.” German driver Riccardo Negro won the event ahead of Italian Marco Zanchetta and Swedish driver Joel Johansson. The pair will head back to Europe to contest the
Chris Hays and Jason Faint
“Overall, I think I’ve learnt more this weekend than any other race that I’ve competed in”
second, and final, round of the CIK-FIA European KZ2 Championships at the Genk circuit in Belgium on June 27-30. Prior to this event both Hays and Faint will contest round three of the CIK Stars of Karting Series presented by Castrol Edge at Geelong, Victoria on June 15/16.
Motorsport Calendar V8 SUPERCARS
Speedway
June 14-16: Rd 6, Skycity Triple Crown, Hidden Valley, Darwin July 5-7: Rd 7, Sucrogen Townsville 400, Townsville July 26-28: Rd 8, Coates Hire, Ipswich 360. Queensland Raceway.
July 13-14: Rd 19, New Hampshire 300, Loudon
INDYCAR
June 7-9: Rd 7, Canadian Grand Prix, Montreal June 28-30: Rd 8, British Grand Prix, Silverstone July 5-7: Rd 9, German Grand Prix, Nurburgring
June 7-8: Rd 7, Texas Motor Speedway June 14-15: Rd 8, IndyFest, Milwaukee, Wisconsin June 22-23: Rd 9, Iowa Corn 250, Newton, Iowa July 6-7: Rd 10, IndyCar 400 Pocono, Pennsylvania July 13-14: Rd 11, Honda Indy Toronto, Canada
MOTO GP
DRAGS
FORMULA 1
June 14-16: Rd 6, Grand Prix of Catalunya, Circuit de Catalunya June 27-29: Rd 7, Assen TT, Assen, Netherlands July 12-14: Rd 8,Grand Prix of Germany, Sachsenring, Germany
WRC
June 7-10: Winternationals Drags, Willowbank Raceway, Qld June 28-29: Aeroflow Sportsman Drag Racing CShips, Alice Springs
KARTING
June 20-23: Rd 7, Rally d’Italia Sardegna, Italy August 1-3: Rd 8, Neste Oil Rally Finland.
June 15-16: Rd 3, CIK Stars of Karting, Geelong, Victoria. July 27-28: Rd 4, Eastern Creek, NSW
NASCAR
PORSCHE CARRERA CUP
June 1-2: Rd13, FedEx 400 Dover International Speedway June 8-9: Rd 14, Poconos 400, Pocono Raceway June 15-16: Rd 15, Quicken Loans 400, Michigan Speedway June 22-23: Rd 16, Toyota/Save Mart 300, Sonoma June 28-29: Rd 17, Quaker State 400, Kentucky Speedway July 5-6: Rd 18, Coke Zero 400, Daytona International
July 05-07: Rd 4, Sucrogen Townsville 400, Townsville
WORLD SUPERBIKE CHAMPIONSHIPS June 9: Rd 6, Portugal June 30: Rd 7, Imola, Italy July 21: Rd 8, Moscow, Russia
June 2013 Motor Trader | 15
Make: FORD Model: XWGT Year: 1969 Engine: 351 WINDSOR Transmission: 4-SPEED TOP LOADER Owned: 6 YEARS, ON AND OFF
THE X W
hen a young Ben Chesterfield, laid eyes on his first Ford XW Falcon, it was love at first sight. The year was 1970 and Ben was in his first year of school. The car was a brand new XWGT and was driven by a classmate’s grandmother when she came to do the school pick-up. From that moment on, all Ben wanted was to own a XWGT. He had to wait until he was 17 before he got hold of a XW, but it was a station wagon not a GT. “I had to start somewhere, and it was a pretty good first car,” said Ben. “Nine years later I got my first GT”. Ben first bought the 1969 XWGT you see on these pages in 1991, but two years later he made the painful decision to sell it to fund equipment purchases for his smash repair business.
16 | Motor Trader June 2013
“It was a tough decision, but the right one at that time of my life,” said Ben. Fast-forward to 2010, while Ben was surfing the net one night he found a XWGT on a muscle car web site that looked suspiciously like his original car. After a few phone calls, and the checking of engine and chassis numbers, he confirmed that it was indeed the car he gave up 19-years earlier. To his delight the car was not only for sale but the current owner had completed some restoration work including a bare metal respray and it was now in better condition than when Ben last saw it. It was fate, and so 17 years and about 20 other Ford models later, Ben was back in possession of his dream drive. “I grew up with Fords, Dad always had them and it was natural that I would also get a thing for them.”
And he certainly has a thing for them. Ben’s daily drive is a 2010 XR6 50th edition Falcon, which is... wait for it... car number 152 in his driving history. But it’s the XWGT that he holds so dearly and he likes nothing more than loading it up with the family on a Sunday and heading out onto the open road, transporting them all not only down a bitumen road but also back 30-odd years. As a member of the Falcon GT Owners Club he regularly goes on club runs and the most recent was to Bathurst for the 15th Falcon GT Nationals. “That was great fun, driving 1000km of country road in a car that was built for doing just that, you turn the AM radio off and listen to the sound of the engine and the note of the exhaust,” said Ben.
Do you have a pride and joy in the garage that you would love to see in the pages of Motor Trader? Contact Bill Key at billk@mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members.
“Mind you, you know when you get there that you’ve been driving an old car, the modern cars are far more comfortable for a long trip, but it’s still the best feeling, the toots from other drivers, and people stopping and telling you tales from when they or their Dad owned one, it’s great.”. June 2013 Motor Trader | 17
give yourself an Technical Information Service Your MTA Queensland membership gives you access to a vast technical library. Industrial Relations As a member of MTA Queensland you have access to industry-specific industrial relations advice and representation. Consumer Complaints MTA Queensland will assist member businesses and facilitate in the event of consumer complaints. Legal Advice Members can access professional legal assistance as part of their membership of MTA Queensland. Industry Awareness Members receive regular industry specific publications to keep you abreast of changes, legislative requirements, developments and initiatives in your industry. • The MTA Queensland logo provides an element of differentiation between you and other businesses and may just form the key point of difference for a potential customer.
Save with our Corporate Partners
The Capricorn Society is the largest independent automotive cooperative in Australia. Members benefit through group purchasing to secure price advantage.
Dun and Bradstreet is the nation’s foremost credit control and debt collection agency. Members are eligible for substantial savings on annual subscriptions.
The Commonwealth Bank offers members some of the lowest EFTPOS charges in the country. Members have saved thousands with CBA.
MTAA Superannuation is the industry’s superfund. Our superannuation partner has over 200,000 members who enjoy excellent service and returns.
Staples is the leading supplier of a complete range of office consumables, bulk stationery and janitorial supplies.
• Being a Member gives you input in the future productivity and profitability of your industry and the opportunity to positively influence it’s future through divisional and regional committees.
NRMA Insurance has vast experience in the provision of specialist insurance services to the automotive industry. Using the buying power of the member base, NRMA can achieve pricing far more attractive than business owners can negotiate individually.
MTA Queensland, Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 | 07 3237 8777 | info@mtaq.com.au | www.mtaq.com.au
20120064
• MTA Queensland actively lobbies Governments with the best interest of our members to reduce red tape and streamline process for business owners.
How does the Budget affect members' wallets
MEMBERS ESSENTIALS Contents 19 Budget special
What's in it for you
21 Training matters
TEACHING THE ART OF MANAGEMENT GOOD TO BE THE KING
25 Industrial relations Long Service Leave entitlements under Fair Work
26 Member profiles Gold City Steering and Suspension Mudgeeraba Automotive Services Ron Streeter Motors Pty Ltd
L
ast month’s 2013-14 Budget has been described by many as anti-climatic. It was bound to be the case with the September Federal Election looming large in the minds of both parties. In addition there was no meaningful attempt to reform the current tax systems and meet the challenges facing Australia moving forward. Australia’s business sector was left disappointed. The fiscal disciplines that business applies to its own enterprise management seemed to be absent from the Budget’s bottom line. Clearly, the estimated $19.3b deficit for 2012-13 and the estimated $18b for 2013-14 did not inspire confidence. The budget did have new initiatives such as the $19.3 billion National Disability Insurance Scheme which will be assisted by a Medicare levy of half a per cent. In addition to the budget highlights mentioned in the GM’s Policy report, other measures that will affect members include: • Raising the Superannuation Guarantee from 9 to 12 per cent
• • • • •
from 1 July, 2013 to 1 July, 2019; A new $27.7m Enterprise Solutions Program to help SMEs bid for public sector work; Expansion of Enterprise Connect services to cover businesses in information technology, transport, logistics and professional services; Reforms to assist with red tape reduction; Tripling of the tax free threshold from $6,000 to $18,200; Expanded business assistance and better access to finance through the $378 million Venture Australia package to stimulate Australia's venture capital market. MTAQ's Federal Budget submission also referred to the importance of training and the demand for skills to service the automotive sector and indeed other industries such as mining and logistics. The 2013 Automotive Environmental Scan stated that '50% of automotive businesses are affected by shortages of skilled labour, and 56.5% expect skills shortages to affect their businesses over the next 12 months.
June 2013 Motor Trader | 19
E S S E N T I A L S
what's in it for you
M E M B E R S
Budget special
E S S E N T I A L S M E M B E R S
Budget special For motor mechanics alone, this translates into a national shortage of approximately of 19,000 trained workers in 2012-13.” We were pleased that the Budget included: • A new $68.8m over four years Alternative Pathways Program to be established in recognition that industries facing skill shortages need more flexible pathways for completing a trade or technical qualification; and • A $45m Skills Connect Fund to ensure more effective workplace training for Australian enterprises to streamline the delivery of government assistance. We welcome too, the outlays on infrastructure - particularly road funding. The Opposition has had its say on an alternative Budget. Emphasis was on tax reform including abolishing the carbon tax to provide relief to electricity and gas prices; abolishing the mining tax to support investment and jobs; a once in-a-generation commission of audit so that government is only as big as it needs to be; a root and branch review of competition policy ensuring small business gets a fair go; small business will be a cabinet portfolio in the Treasury department in a Coalition Government; and delaying the ramp up in compulsory superannuation by two years because the money comes from business.
Personal Income Tax rates
The Budget confirmed the income tax cuts for the 2012-13 income year, however the Government has decided to defer the subsequent tax rate changes contained in this legislation that were to commence on July 1, 2015. A summary of how the resident personal rates will apply is set out in the table below. Increase in 457 application charges and compliance scrutiny From July 1, 2013, the application fee for 457 visas will almost double from $455 to $900. The four-year 457s are temporary residence visas offered to skilled workers and their dependants who are sponsored by an Australian company. The measure is expected to raise $198m in revenue over four years. The Fair Work Ombudsman is also set to receive $3.4m over the next four years in new funding to monitor and enforce employer activity among 457 visa holders. Increase in funding for Innovation Investment Fund and Fair Work Commission The Innovation Investment Fund has been allocated fresh cash of $350m, and the Fair Work Commission will receive $21m specifically aimed at policing workplace bullying. National Broadband Network Funding of $12.9m has been pledged to help small businesses take advantage of opportunities from the National Broadband Network, although the ICT Centre of Excellence will be scraped. The Enterprise Solutions Program Nearly $30m has been promised over 5 years to aid in small business become more competitive when bidding for Government contracts and tenders. Grants of up to $100,000 for feasibility studies and $1m for proof of concept will be made available. The Government is also providing $135m for 150 four-year Future Fellowships to attract and retain the best Australian and international mid-career researchers ‘in areas of national importance’. GST Instalment System In the 2011-12 budget, the Government announced a measure which would allow businesses in a net refund position to access the GST instalment system. The Government has now announced a revision to the previously announced measure so that only those businesses already using the GST instalment system will be allowed to continue to use it if they move into a net refund position. Source: Taxpayer's Australia Inc.
INDIVIDUAL RESIDENT TAX RATES PER BUDGET Rates
Taxable Income
20 | Motor Trader June 2013
2012-13, 2013-14 and 2014-15
Lower Threshold
Upper Threshold
Tax on income up to lower threshold
Rate of tax for each $1 over lower threshold
-
18,200
-
0%
18,201
37,000
-
19%
37,001
80,000
3,572
32.5%
80,001
180,000
17,547
37%
180,001
-
54,547
45%
M E M B E R S
Training matters
E S S E N T I A L S
TEACHING THE ART OF MANAGEMENT A new course aims to help small business manage.
T
he Metropolitan region of the Department of Education, Training and Employment (DETE) supported a pilot program last month that is designed to upskill business owners in the management needs and requirements, essential in the running of their businesses. The course run by MTA institute of Technology (MIT), was held over four days in an open forum style classroom, ideal for adult learning, with the aim that students can turn up, spend the days learning, and take all their new found knowledge back to their businesses with the minimum of fuss and without impacting on their busy schedules. “We want them to leave here armed with new skills that will enable them to make their businesses more profitable,” said MITs Anthony Bonaccorso. Lynette Taylor and Jimmy Southwood from DETE visited the students during the course to gauge the success of the program. “Our priority is the upskilling of employers and employees within priority skill industries,” said Mrs Taylor. “Business skills have been identified as a priority need in the auto industry and this course is addressing those needs for 20 small employers.”
“Everybody is more time poor these days, and this course acts in a two pronged manner, not only training the students but also allowing interaction between people from similar industries leading to the exchange of ideas and solutions within their industry,” said Mr Southwood. Trainer Travis Windsor says the course aims at practical business goals, making more money for your business and taking control of your business. “One of the students is going from a single operator to an actual business that he controls, we are giving him the tools to achieve that.” said Mr Windsor. Carline Gill and Ryan Dixon from Brumac Motors believe the course has armed them with the knowledge needed to put more structure and procedures into the business when they return, and learning how to create a proper business plan was crucial. “Travis has taught us that once you get the structure right, you can then take it to another level and continue to improve constantly,” said Mr Dixon. “Travis is very knowledgeable and inspirational, we need to channel him when we get back to the business,” added Mrs Gill. Paul Bonaccorso of Bono’s Car Care said he original signed up for the
course because it was an opportunity for him to reignite something in him to get the business moving forward. “So far it’s working, I’m really motivated and have some great ideas to take away from here, it’s also reminded me and made it clearer how I should approach the business to succeed,” said Mr Bonaccorso.
HAVE YOUR SAY Automotive Skills Queensland (ASQ) is conducting a survey to gauge the level of business confidence amongst Queensland automotive small to medium size enterprises (SMEs) and its impact on employment and skills. The answers will help to inform ASQ’s future advocacy work with SMEs. ASQ is the peak industry skills council for the Queensland automotive industry, serving over 14,800 automotive related businesses. It is a not for profit non government organisation which supports the automotive industry in workforce planning and development. The survey closes on 21 June 2013, to take part or get more information on the survey please contact info@asqld. org.au as soon as possible.
June 2013 Motor Trader | 21
E S S E N T I A L S M E M B E R S
I NS T I T UT E OF T E CHNOL OGY
Get Your Trade Skills Recognised Do you have trade skills and experience but no formal qualifications?
MTA Institute of Technology offers Trade Recognition for the following qualifications • Automotive Electrical Technology
Trade Recognition
• Automotive Mechanical Technology (Light Vehicle)
Trade skills recognition is a way of gaining formal recognition of your skills and work experience. If you have not completed an apprenticeship in Australia or you have gained trade skills overseas, you can have your skills, work experience and trade qualifications nationally recognised.
• Automotive Mechanical Technology (Motorcycle)
Recognition of work or training (trade recognition) allows people to gain a certificate of recognition in Queensland in an apprenticeship trade, where:
• Automotive Vehicle Body (Vehicle Painting)
• A formal apprenticeship has not been completed • An apprenticeship or trade training has been completed overseas
• Automotive Mechanical Technology (Heavy Vehicle Road Transport) • Automotive Specialist (Diesel Fitting) • Automotive Vehicle Body (Panel Beating) • Automotive Sales (Parts Interpreting) In most cases the Queensland Government covers the majority of the cost for trade recognition other than mandatory fees determined by Government.
Course Length
Australian residency criteria 1. Are you an Australian or New Zealand citizen? 2. Do you have permanent residency in Australia? 3. Do you hold a provisional Visa (163, 309, 310, 457, 820 and 826) or Skilled Independent Regional (SIR) Visa or Temporary Protection Visa (TPV)?
Once an application has been received with all supporting documentation, MTA Institute of Technology will assess and respond within 10 working days. Evaluation can be completed at MTA Institute of Technology’s Eight Mile Plains premises or alternatively on site at the applicants workplace.
Enrol Should you wish to obtain more information regarding trade recognition, please contact one of our friendly team using the contact details below.
Address Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 Postal PO Box 4530 Eight Mile Plains Qld 4113 Tel (07) 3722 3000 Toll Free 1800 884 137 Email training@mtaq.com.au
20120004
MTA Institute of Technology
M E M B E R S
Divisional news
Dear Queensland AADA member, I recently agreed to accept the position as President AADA Queensland because, after canvassing many other Dealers, not just in Queensland, there is overwhelmingly a belief we are not being properly represented on legislative issues and more importantly Franchisor issues. ‘Dealer Councils’ are forums for Franchisors to explain what they want from their dealers. In many cases consensus can and is achieved amicably. They are not however a Forum for what dealers need and want beyond the brand. This should be where AADA takes over, when consensus is not possible. Over the years this is not what has happened, with the majority of Dealers unsure of what AADA does, and worse, don’t care. AADA, because of its structure, focuses on political/legal solutions and is not set up to argue franchise relationship issues with the Franchisors. These issues must be resolved by someone totally credible to the Franchisors and in a way which does not jeopardise individual relationships. Recently the AADA National board, of which I am the Queensland Director, decided the way forward was to create a ‘National Dealer Council’. This would be made up of influential dealers appointed by each of the five State industry bodies, along with some of their CEOs who currently fund the national body through the five major Industry Organisations. The proposal is that this Dealer Council will employ a ‘Franchisor Insider’ to represent our issues. An ‘Implementation Committee’ is being established as the first step in the way forward. I have been elected to represent Queensland and Marcus Birrall, the Chairman of Motors Group in Tasmania and Victoria, has been elected to represent Victoria. AADA NSW, AADA WA and AADA SA have yet to appoint their representative on this committee. As a first step the AADA QLD board have decided to recommend to AADA members that the AADA QLD name be dropped and replaced with ‘Queensland Motor Dealer Council’, and also to provide a mechanism for the elected Queensland Dealer Council chairman to be involved in the appointment of the Queensland National Dealer Council Director along with the National Dealer Council Agenda. I encourage you to support these initiatives and to encourage your fellow Dealers to support the proposed changes, which will be a step towards a level playing field.
other news APRD. (Auto Parts Recycling Division) MTAQ to seek clarification from Office of Fair Trading around Licensing of auto parts recycling salespersons. Auto Parts Recycling’s national body, APRAA, in conjunction with AMIF (Australian Motor Industry Federation) working on Refrigerant Recovery licensing requirements. QMID. (Queensland Motorcycle Industry Division) Free CBD Motorcycle Parking increases to 700. QLD nominated for the Chairman and Secretariat rolls with AMIA (Australian Motorcycle Industry Association) for the next 2 yrs. RVID. (Rental Vehicle Industry Division) Rental vehicle committee looking at ways to increase membership. QFIMDD. (Queensland Farm & Industrial Machinery Dealers Division) MTAQ is seeking clarification from the office of fair trading around licensing for Farm Machinery Dealers selling quad bikes and ATV’s.
Garth Madill Queensland President AADA
MTA Queensland welcomes the following new members Business Name
Principal/s
Address
Division
Bridgestone Select Ashmore
Mathew Galea
12 Hinde Street ASHMORE Q 4214
mathew@gmgstore.com.au
TUDQ
Carstart Finance
Evan Lewis
2/3381 Pacific Hwy SLACKS CREEK Q 4127
elewis@creditcorp.com.au
AED
Goodyear Auto Care Beenleigh
Kevin Hemsley
7 George Street BEENLEIGH Q 4207
Kevinhemsley1@bigpond.com
TUDQ
Street Art Wheels
Thomas Coonan and Therese Strong
6/18 Rocla Court TOOWOOMBA Q 4350
sales@streetartwheels.com.au
TUDQ
June 2013 Motor Trader | 23
E S S E N T I A L S
To reflect national changes, the Qld AADA Board recently recommended a name change. The letter sent to Qld AADA members is printed below.
E S S E N T I A L S M E M B E R S
GOOD TO BE THE KING Vince Vitanza Celebrated 50 years in business earlier this year and he has been an MTAQ member since day one.
W
hen accountant Vince Vitanza first started selling tyres from an Amoco Service Station on February 1, 1963, under the banner ‘Vince Vitanza: The Tyre Discount King’ he had no idea he would still be going strong 50 years on. Born in Innisfail, Vince completed most of his education in Cairns, and moved to Brisbane when he was 15, finishing his final years of school at St Joseph’s College Gregory Terrace. And he has stayed in Brisbane ever since. Starting his career in the motor industry as a clerk at Eagers Retail in 1957, Vince moved to Ampol as an accounts clerk in 1960. On February 1, 1963, Vince leased his first service station at Clayfield. 12 months later opportunity came knocking and Vince moved to the Amoco at New Farm where he remained until 1998. In 1975 he bought out a tyre distributor across the road from his service station and so began Vince’s serious entry into the world of tyres. “The industry has changed dramatically, when I first started, there were only cross-ply tyres, now you have steel-belted and a host of different brands, styles and sophisticated equipment,” said Mr Vitanza. During the late 70s and early 80s Vince continued to grow his business 24 | Motor Trader June 2013
“I have put many
apprentices through our business and I have always used the MTAQ for apprentice training, it’s been a great service”
portfolio with several more service stations and a Bridgestone Steel Cat Centre and in 1988 started importing tyres from Korea. At the height of his business, in the 90s, Vince had nine Bridgestone Tyre Centres and one BP service station, dotted around Brisbane, Beenleigh and Goodna. “As I got older, I decided to rationalise my businesses, and over time I started leasing some of my sites to other companies, I relocated others, and sold of a few more. And now, I have three sites, Fortitude Valley, Coorparoo and Milton, and we own them all. The Valley store is purely tyres, Milton and Coorparoo also do mechanical repairs.” Vince has also been a MTAQ member for the last 50 years. “I have been a member of MTAQ ever since I commenced business, and I was on the committee of the Qld Tyre
Dealers Association many years ago.” “I have put many apprentices through our business and I have always used the MTAQ for apprentice training, it’s been a great service.” After 50 years in tyres, the future still looks bright. “I have sold tyres to entire families, the grandfather, his son, and now his son, we have built relationships with our customers over the years and we have built relationships within the communities. “And I have always said, I like to sell the right tyre at the right price, and my staff must treat every customer like a new girlfriend, with lots of respect.” Vitanza’s Tyres is a true family business with Vince’s wife Lyn being actively involved since the early days and his two sons now running the daily business. “I’m still involved, but not in retailing or day-to-day operations,” said Mr Vitanza. “My son Anthony has been in the business for 25 years and is now manager of our Fortitude Valley store and my other son Michael has been involved for 10 years and is looking after the Milton store.” “I have always enjoyed what I’m doing, I’m 73 now, and my sons will naturally take over, but I still want to be involved in the business until I’m 96, so I’ll be around for a while yet.”
Industrial Relations Manager
Long Service Leave entitlements under Fair Work
A
ll businesses are now in the Federal Fair Work system but the Fair Work legislation provides that an employees’ long service leave entitlements will depend on which legislation applied to the business prior to the commencement of the Fair Work system on 1st January 2010. Most MTAQ members were previously covered by Queensland State awards and the State Industrial Relations Act. On that basis, employees currently working in a business that was previously under State award will gain their long service leave entitlements via the Queensland Industrial Relations Act. That legislation provides for long service leave of 8.6667 weeks after 10 years’ service and pro-rata after 7 years under limited circumstances. Those “limited circumstances” include (a) redundancy (b) death (c) resigning because of illness or incapacity and (d) resigning because of pressing domestic or other necessity. Being dismissed for poor performance or leaving because you’re sick of your current job and want to move on, does not qualify for pro-rata long service leave. “Pressing domestic or other necessity” could include matters such as; family moving interstate or to another town; employee leaving work to care for sick child or parent; or pregnant employee leaving workforce to become a full time carer. Casuals under State legislation do accrue long service leave based on total hours worked over the period of
“Any employee being
paid a commission or bonus is entitled to have that commission factored into their payment for long service leave”
employment. Any employee being paid a commission or bonus is entitled to have that commission factored into their payment for long service leave. Total commissions earned over the previous 12 months are divided by 52.179 to get a weekly average and that figure is added to the normal weekly ordinary gross to get the value of the accrual. Employees currently working in a business which was, prior to 1st January 2010, already in the Federal system (covered by the Vehicle Industry Repair Services and Retail Award) get their entitlement from the Federal Vehicle Industry Repair Services and Retail (Long Service Leave) Award. That award provides for 13 weeks long service leave after 15 years’ service and pro-rata after 10 years. Casuals under this legislation do not accrue long service leave. Any employee being paid a commission is entitled to have those commissions factored into their entitlement. Total commissions over the previous 3 months are divided by 13 to get a weekly average and that figure is added to the normal weekly ordinary gross to get the value of the accrual. June 2013 Motor Trader | 25
E S S E N T I A L S
Ted Kowalski
M E M B E R S
Industrial relations
Gold City Steering and Suspension Location: 4 Clematis Street, Gympie Type of business: Suspension specialists
M E M B E R S
E S S E N T I A L S
Member profiles
Number of employees: Six Trading since: 1988 MTAQ member since: 2004
Gold City Steering and Suspension
Mudgeeraba Automotive Services Location: Mudgeeraba Type of business: Automotive Number of employees: Five Trading since: 1997 MTAQ member since: 1997
How did you hear about the Motor Trades Association of Queensland? (MTAQ) Recommended by GMH. How has being an MTAQ member benefited your business? Getting help and answers to questions, especially from Ted, who is always willing to assist. What has been your proudest business achievement to date? Having satisfied customers.
What is the best thing about working in your industry? Again, having satisfied customers. What is the best piece of business advice you have ever given or been given? Work hard. What would you say to someone thinking about joining MTAQ? Join it‌ and reap the benefits.
Ron Streeter Motors Pty Ltd Location: 4 Hilderbrand Street, Gladstone Type of business: Mechanical repair and servicing for cars, 4WD and Light trucks Number of employees: 12 Trading since: 1982 MTAQ member since: 2005
Ron Streeter Motors Pty Ltd
26 | Motor Trader June 2013
How has being an MTAQ member benefited your business? MTAQ keeps us up to date with legislation changes, wage increases and all our other obligations relative to our industry. We have also put a number of young people through traineeships using MTA trainers.
What is the best thing about working in your industry? The satisfied customers who make a point of ringing us up or coming in to tell us that their car is now driving or handling better than it’s ever done before.
What is the best piece of business advice you have ever given or been given? Get computerised (in 2007). I can’t imagine running our business without them now. What would you say to someone thinking about joining MTAQ? Do it! It will be worth your while and the money spent.
Mudgeeraba Automotive Services
How did you hear about the Motor Trades Association of Queensland? (MTAQ) I have been aware of the organisation most of my working life.
What has been your proudest business achievement to date? Being successful and being rated by my peers.
How has being an MTAQ member benefited your business? Receiving up-to-date information on wages, industrial awards, industry trends and direction. Ability to access technical info and industry advice.
Most proud of the many very good apprentices I have trained who are now highly-skilled tradesmen.
Modern up-to-date training for my apprentices.
What is the best thing about working in your industry? The industry is so technically advanced, always something new and interesting to learn but most of all our customers and suppliers who are great people.
What is the best piece of business advice you have ever given or been given? Make your customers feel comfortable, treat customers and staff as you would like to be treated. And there are some jobs you are better off not taking. What would you say to someone thinking about joining MTAQ? Today more than ever a business needs the services of MTAQ to survive.
June 2013 Motor Trader | 27
E S S E N T I A L S
I had always been aware of MTAQ as an industry body, but I think we came on board because of training.
What has been your proudest business achievement to date? Being in business for 25 years after starting from scratch on a shoestring budget.
M E M B E R S
How did you hear about the Motor Trades Association of Queensland? (MTAQ)
Fitness and lifestyle
Down and dirty Over the next few months, Queenslanders will be doing it tough as the state becomes the home of Obstacle Course Racing in Australia.
28 | Motor Trader June 2013
Training BURPEES Everybody has their own personal training regimes for obstacle course racing but all believe that the dreaded burpees are a must, as they are the regular penalty for missing an obstacle during the races. Aim to do 30 reps, four to five times in between other sets of exercises.
UPPER BODY & MOVEMENT Full body movement exercises are great, chin-ups, thrusters, push ups, sprints, rope climbs and box jumps are highly recommended.
RUN Aim to get your cardio and running up to scratch with most races consisting of between 8 and 20kms of running, in all terrains, all gradients and all weather.
T
he growing popularity of obstacle course racing is taking the world by storm and five different events will be held around South East Queensland between now and October. With names like Spartan, True Grit and Tough Mudder, competitors in this extreme form of exercise are left with no doubt from the time they sign up that these marathons are not for the weak. The Super Spartan Race kicks off the Queensland events on June 22 at Peaks Crossing, just south of Ipswich, and if you’ve ever wanted to jump through fire or crawl under barbed wire than this is the race for you. The 14km Spartan Race is perfect for thrill seekers who want to test what they are capable of; both mentally and physically, with over 20 obstacles including rope climbs, mud pits, cargo nets and fire jumps. Over 10,000 people took part in the shorter 7km versions in Sydney and Melbourne, and Spartan Race Directer, Max DeLacy is excited about the Queensland event. “We’ve been inundated with requests for a Super race since we launched in Melbourne in March and Brisbane is the lucky city to experience the next installment,”
“With names like Spartan,
True Grit and Tough Mudder, competitors in this extreme form of exercise are left with no doubt from the time they sign up that these marathons are not for the weak.”
said Mr DeLacy. “We’re also excited to see Queenslanders take on the world’s fastest growing sport.” And despite the grueling nature of the sport, the growing popularity of obstacle race challenges has seen thousands of people register for the races in the months leading up to the events. Not to be out done, one of the world’s most famous obstacle course races, Tough Mudder will be held on the Sunshine Coast on August 17 and 18. June 2013 Motor Trader | 29
Fitness and lifestyle More than 14,000 Queenslanders have already signed up for the 20km endurance challenge, which also features over 20 military-style obstacles, including three-metre-high walls, mud pits, ice baths and the dauting field of live wires containing up to 10,000 volts of electricity. Tough Mudder was founded in 2010 by Will Dean and Guy Livingstone and is dubbed “Probably the Toughest Event on the Planet.” Each event is designed to test the competitor’s toughness, fitness, strength, stamina, mental grit and teamwork. Organisers say teamwork and camaraderie are at the heart of the Tough Mudder experience, as some obstacles are virtually impossible to complete as an individual. “Tough Mudder is a truly memorable experience, and we can’t wait to see how Queensland Mudders take on the challenge. The Sunshine Coast community has been extremely supportive of us, and we’re pleased that Caloundra Downs will host the first Tough Mudder event in Queensland. It’s an awesome location to challenge participants both mentally and physically,” said Drew Ward, Managing Director of Tough Mudder Australasia. Tough Mudder are predicting that more than 20,000 Mudders will take part over the course of the weekend.
SOME OF THE OBSTACLES Arctic enema: Swim through an ice bath, under a wooden plank and out the other end. Boa Constrictor: Crawl through a series of pipes that force you downhill into freezing mud, then back uphill.
30 | Motor Trader June 2013
The 2013 Tough Mudder series includes 53 events taking place across various cities in the US, Australia, the UK and Canada.
Calendar Spartan Super Race June 22: Peaks Crossing.
Greatest Athlete Challenge July 6: Brisbane
True Grit July 13-14: Tamborine
Tough Mudder August 17-18: Caloundra Downs
Raw Challenge October 12: Gold Coast Each event has a website for more information.
Electro shock: Sprint through a field of live wires, some carrying as much as 10,000 volts of electric shock. Hangin’ Tough: Swing Tarzan-style across a series of hanging rings suspended over a pool of water. Balance Beam: Maintain balance
and carefully traverse a narrow wooden beam. Walls: Scale 8-12 foot wooden walls with the help of your teammates. Barbed wire crawl: Crawl commando-style under barbed wire set 20cm from the ground.
Travel
Spoil yourself on the Reef Live it up with a tropical treat.
L
ike to spend five days living the life of the rich and famous? It can happen with a package that combines a stay in a luxury, five star Tropical North Queensland hotel plus an exclusive island resort getaway. The Suite Life Package is a joint venture between Pullman Reef Hotel Casino Cairns and Orpheus Island Resort and features two nights in a suite at the hotel and three nights beachfront accommodation on the island. Located offshore from Townsville, amidst the magical waters of the Great Barrier Reef, Orpheus Island boasts 11km of immaculate turquoise coastline, spectacular fringing reefs and accommodates just 34 indulged guests at any one time. Whether a getaway that’s packed full of memorable experiences, or a more private and intimate hideaway, Orpheus offers guests the ultimate in tropical island escapism. On Orpheus, the Suite Life package includes all gourmet meals, regional wines and beers, a romantic Dining with the Tides experience, a chef-prepared picnic hamper on a secluded cove and a daily nature-based experience including snorkelling, fishing or a local island cruise.
Access to Orpheus is via helicopter transfers from either Cairns or Townsville, bookings are essential and prices are made available at time of booking. The five star Pullman Reef Hotel Casino located in the heart of Cairns with harbour and mountain views, is the most prestigious hotel and entertainment complex in Cairns featuring a multi award-winning restaurant, luxurious rooms and suites. The Suite Life Package comprises two nights junior suite accommodation at Pullman Reef Hotel Casino, room service breakfast for two each morning, $100 credit for the acclaimed Chef's Hat Tamarind Restaurant, complimentary Audi transfers to and from Cairns Airport and midday checkout. Total cost of the Suite Life Package is $4,678 per couple. Bookings for this package can be made with Orpheus Island Resort by dialling 07 4777 7377 or Pullman Reef Hotel Casino on 07 4030 8888 and quoting Suite Life. Access to Orpheus is via helicopter transfers from either Cairns or Townsville Airport. Bookings are essential and prices are made available at time of booking.
WINTER ESCAPE IN THE CITY Mercure Brisbane is offering complimentary breakfast with every two-night stay as the hotel emerges from an extensive renovation. The landmark riverfront property at North Quay in the heart of the CBD has incorporated its riverside outlook into the new décor with a combination of vibrant colours and black and white imagery of the Brisbane River decorating the bed heads in the refurbished guest rooms. The new look rooms have also been fitted with restyled bathrooms featuring walk-in-showers, large hand basins and LED mirror lights. New lighting, digital LCD TVs, glass front refrigerators, internet access, room safes and clock radios with iPod docks have also been installed. The renovations have been completed in time to accommodate guests arriving for Brisbane’s high profile winter special events program. These include an exclusive appearance by the Bolshoi Ballet, the National Theatre of Great Britain’s production of War Horse, the Queensland Music Festival and the Brisbane Winter Racing Carnival including the Stradbroke Handicap, Brisbane Cup, Queensland Derby and Queensland Oaks and the British and Irish Lions tour. Mercure Brisbane's riverside location and proximity to the City Cat ferry service allows guests to explore the city from the water and is a short walk from South Bank where the 25th anniversary of World Expo 88 is being celebrated. The free breakfast offer is available until September 30, excluding June 2130. For accommodation bookings and more information call 07 3237 2300 or visit www.mercurebrisbane.com.au.
June 2013 Motor Trader | 31
Industry insight
OLDER WORKERS COULD HOLD THE KEY
Employers need to think outside the box when it comes to finding a skilled workforce.
S
upply and demand have always been at the forefront of good business, and the most successful businesses are always looking at new and innovative chains of supply, this same theory can be applied to the skills shortage problem in Australia. Recent research undertaken by Automotive Skills Australia indicates that a shortage of skilled automotive labour is prevalent in all states to varying degrees. These shortages have largely arisen due to a number of factors including a lack of growth in the overall supply of automotive labour over the last 10 years, the ability for skilled automotive labour to work across a broader range of industries and a large transfer of skilled automotive labour into the mining and resource sectors. The Australian automotive industry is a sizeable entity and key contributor to the nation’s economy, accounting for 2.65% of Australia’s GDP and employing just over 380,000 people nationally and almost 68,000 people in Queensland. Although the Australian labour force has grown by more than 2 million people since 2003, the participation of automotive apprentices in the labour force as reflected by the number of apprentices in training has remained flat at an average rate of 29,500 a year over the same period. Unfortunately the automotive industry is losing its appeal among today’s generation of youth with personal mobility and interaction being redefined through the internet, social media and smart phones. Fiddling 32 | Motor Trader June 2013
“Unfortunately the automotive industry is losing its appeal among today’s generation of youth.” under the hood of a motor vehicle is not an interest or passion aspired to by as many young people today. However, with the population growth and fertility rates continuing to slow, people are living longer, meaning that in Australia the over-60s are growing in number at approximately four times the rate of other demographic groups. If this continues, by 2050 there will only be 2.7 working Australians for every person over 65. In the 1970s, the ratio was 7.5 workers for each older Australian. A study in 2010 showed that Australia was ranked 13th amongst the Organisation for Economic Cooperation and Development (OECD) for Labour Force Participation of workers aged 55 and over. This puts Australia below Finland, New Zealand, Iceland, Japan, the UK and the US. Employers can manage this decline and avoid being caught in a ‘bidding war’ for employees. Retaining competent, loyal and experienced older workers may well save many businesses in the future. There are around 4 million baby boomers who will be leaving the workforce in the next 20 years. These
experienced older workers often still have much to offer businesses. Employers who can retain these competent people in the workforce longer, should be better able to cope with the changes in the labour supply. Money is often not the primary motivation for job satisfaction for older workers. Business owners and managers who try to understand the needs of these employees, and make an effort to tailor the working environment to suit them, will attract better employees and keep them longer, and by keeping good staff longer, they will retain their investment in recruitment and training. However, this may require a change in attitude towards engaging and keeping good mature age (45 plus) workers. Unless business owners and managers recognise that older employees will make up an important and essential part of any successful workforce, they might find themselves unable to meet business demand. Recruiting or retraining workers over 45 can help stabilise any workforce. Older employees tend to stay longer, are loyal and more consistent in their work output. Their experience also provides business common sense stemming from experience. Employers may have to consider more flexible working conditions for older employees. Days off or fewer hours each day may be far more important than extra money. If you are experiencing difficulties recruiting younger workers think about the advantages of older people, you may find it is beneficial for your business.
Excel-G
GAS SHOCK ABSORBER
Three Best Whether you’re replacing the O.E. shocks on a Commodore, lowering a REX or jacking up a Hi-Lux, we’ve got the right shocks for the job. KYB is the largest manufacturer of shock absorbers for original equipment in the world supplying 1 in 4 vehicles produced globally. This ensures that you the customer are getting the correct and specific product made to the highest quality for any given application – not just a shock that is common to many vehicle models because it will simply bolt in. Twin tube construction combined with low pressure gas ensures a fast responding piston rod to give the driver confidence in knowing that the product will deliver regardless of the conditions. Supported and backed in the industry with both product and technical advice. You can relax, it’s KYB.
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www.kyb.com.au
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