Motor Trader March 2014

MAR 2014

THE FINAL

COUNTDOWN + TOYOTA DECISION SEALS INDUSTRY’S FATE

MEMBERS CLASSIC: 1966 BEDFORD J5 BUS MTAQ MEMBERS REVVED UP FOR CHARITABLE BASH

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Contents Official Publication of the Motor Trades Association of Queensland

Follow us on Facebook www.facebook.com/MTAQueensland

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 Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Michelle Chadburn POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Emily Metelmann 07 3237 8784 Facsimile: 07 3844 4488 Email: emilys@mtaq.com.au

16

EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777

22

SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually MOTOR TRADER PUBLISHING POLICY 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.

10 02 From the editor 04 Policy/Viewpoint 06 Divisional news 08 MTA Q&A NEIL AND MICHAEL HART:

MTA QUEENSLAND ABN: 74 028 933 848 CORPORATE PARTNERS

BOB JANE T-MARTS

Feature 10 SUN SETS ON TOYOTA 13 News CREATING NATIONAL AWARENESS

20140141

WITH GREEN STAMP PROGRAM

16 Members Classic THE FUN-RAISER:

1966 BEDFORD J5 BUS

18 Charity matters

MTAQ MEMBERS REVVED UP FOR CHARITABLE BASH

21 MEMBERS ESSENTIALS 22 Training matters 24 Members matters 26 Member profiles 28 Industrial relations 29 Investment matters

MARKET WRAP

33 Industry insight

GROWING SALES, PROFIT, AND CASH March 2014 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

H

ELLO AND WELCOME to the March edition of Motor Trader.

In what would appear to be a fatal blow to Australia's automotive manufacturing industry, Toyota will follow in the footsteps of Mitsubishi, Ford and Holden and cease to manufacture cars in this country.

The news may not have come as a complete surprise but it is, nevertheless, a miserable turn of events.

Attention will now focus on what can be salvaged from the industry, though the plight of not only the manufacturers' employees, but also the tens of thousands in associated businesses such as parts suppliers will be of major concern and a political hot potato for the federal government.

MT takes a look at Toyota and its decision from page 10.

News that only between four and five per cent of apprentices in the

NOMINATIONS STILL OPEN FOR QUEENSLAND TRAINING AWARDS NOMINATIONS FOR THE Queensland Training Awards 2014 are set to close at the end of March so the opportunity remains to nominate individual students, apprentices, trainers and employers for the state’s highest training accolade.

Established over 50 years ago, the Queensland Training Awards recognise

2 | Motor Trader March 2014

automotive trades are women also made news recently, especially as Auto Skills Australia published figures that suggest there is a critical shortage of as many as 35,000 skilled workers in the industry.

With a push on to recruit more women into the industry to solve this problem, MT talks to four female apprentices training through MTA Institute of Technology (MIT) to discover how life in the trade is going for them and why more women should be giving it a go.

In Members Classic this month we talk to Carl Agnew of Sommerville Smash Repairs.

Carl's 'Classic' is a 1966 Bedford truck that is used, primarily, to take part in that fine, annual, fundraising endeavour, the Variety Bash.

A fixture on the Bash in recent years, the truck has played host to a number of famous faces, has its own video on youtube of it getting hauled out of a tough spot, and has a number of unique 'modifications' that make it truly a one-of-a-kind. Take a peek at page 16 for the low-down on this unusual vehicle.

On the subject of raising money for charity, many MTAQ members are involved in just such work and a fair number take part in the Variety Bash to do so.

MT talks with some of those members on their involvement with this fantastic charity.

In our MTA Q&A feature this month we sit down with Neil and Michael Hart from Bob Jane T-Marts in Beenleigh, south of Brisbane.

Three generations of the Hart family have worked in the trade and they have some interesting insights and observations into the industry and the Bob Jane business philosophy.

In Members Matters this month, we catch up with Annette Watts from Townsville who was the driving force behind a new initiative there to tackle the problem of stolen number plates, and we also chat to David Noble from Motorvation Automotive whose generosity in supplying automotive resources - from engines to gearboxes - helps MIT to train its apprentices to the very highest level.

As always, we will continue to endeavour to bring you news and insight into the automotive industry, the most up-to-date information regarding training opportunities, and highlight members interests.

I hope you enjoy this edition of Motor Trader, and if you have a story you think is worth telling, want to appear in Member Profiles or have a classic car, motorbike or truck you would like to see featured, then please don't hesitate to contact me.

and reward the outstanding achievement of individuals and organisations and there are 11 award categories in which candidates can be nominated.

There are eight individual award categories: Apprentice of the Year, Trainee of the Year, Student of the Year, School-based Apprentice or Trainee of the Year, Aboriginal and Torres Strait Islander Student of the Year, VET Teacher or Trainer of the Year, Small Employer of the Year, and

Employer of the Year.

These are initially contested across seven regional areas and regional winners are automatically selected as state finalists and go on to compete for the state award.

State winners are eligible to nominate for national honours at the Australian Training Awards.

Nominations close on March 21.

For nomination information, visit www.qta.qld.gov.au

Cheers,

Jonathan Nash jonathann@mtaq.com.au

Automotive Air Conditioning Technology

Light Vehicle Mechanical Technology

Automotive Tyre Servicing Technology (Light & Heavy)

Automotive Body Repair Technology

Mobile Plant Technology

Heavy Commercial Vehicle Mechanical Technology

Automotive Underbody Technology

Automotive Sales

Automotive Electrical Technology

Management Courses Motorcycle Mechanical Technology

Automotive Refinishing Technology Automotive Pre-vocational Courses

ON THE JOB TRAINING IN YOUR WORKSHOP In most cases, Qld Government funding meets the cost of training

Call us on 1800 884 137 or visit www.mtait.com.au to register your apprentice

Policy/Viewpoint service stations but not the Brisbane based e lube oil blending and grease plants. The indications are that Vitol will continue to operate the Geelong refinery. More will be known in the coming days. Our Service Station and Convenience Store Association Members will have much interest in this rumoured sale.

KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

A

S I WRITE Viewpoint, an uncompleted draft schedule of our trip to Members in Central and North Queensland lies to the side on my desk. I will provide an update of the schedule in next month’s Viewpoint and I always look forward to catching up with Members in these areas.

February has been a month of economic shocks for the automotive industry. Toyota announced it was to close down at the end of 2017after 50 years of building motor vehicles in Australia. This follows on from Holden’s December declaration that it would cease operations also at the end of 2017. Like Ford and Holden, Toyota will transition to a national sales company. It is clear that the future automotive value chain is going to be very different from what it is today.

Each of the automotive manufacturers based their decisions to close on the “perfect storm” of negative influences faced by the sector. These included the high Australian dollar, the high cost of production, the small domestic market and a competitive market. And it is a tough market; around 66 vehicle brands compete for just over one million vehicle sales.

Imported new vehicle sales account for almost 90 percent of the market.

As well, Royal Dutch Shell, subject to the Foreign Investment Review Board approval, has sold its Australian enterprise to Vitol the Dutch owned global oil trader. The sale includes the Geelong refinery, 870 retail 4 | Motor Trader March 2014

CODE OF PRACTICE FOR MECHANICAL WORKSHOPS AND PANEL INDUSTRY Members with motor vehicle workshops will recall that the Queensland Government in March 2013 abolished the environmental licensing requirements (Environmentally Relevant Activity 21 (ERA 21). We’ve played a major part in the removal of the burdensome ERA 21 by way of submissions and other interactions.

Now we are working closely with the Department of Environment and Heritage Protection to develop a Code of Practice for Motor Vehicle Workshop Operations (Mechanical and Panel). A Draft of the Code was circulated to Members for feedback, and I thank those who responded.

Members with motor vehicle workshop operations must recognise that they have a continuing obligation to meet minimum environmental standards under the Environmental Protection Act. Don’t forget our Green Stamp Program. It is available as a service to Members (fee for service) for auditing and accrediting their business as part of a National Accreditation Program. This is an avenue for automotive businesses to market themselves as going above and beyond environmental regulatory requirements. The new, unified program is expected to become one of the leading environmental accreditation programs for the automotive industry in Australia.

It will increase the awareness of environmentally responsible Members amongst the community. Importantly, much of the requirements align with the proposed Code of Practice.

SHARING OF REPAIR INFORMATION IN THE AUTOMOTIVE INDUSTRY The sharing of repair information in the automotive industry has been an important policy matter for our Automotive Engineers Division.

Until recently, it was thought it was settled policy. It seems not.

Representations have been made to the Federal Government to address the sharing of repair information with independent repairers.

In November 2012, the Commonwealth Consumer Affairs Advisory Council (CCAAC) urged the development of voluntary industry Code of Conduct to grant independent repairers access to vehicle repair information. This was to be done over a twelve month time frame. While it would appear that no tangible progress has been made to achieve a voluntary arrangement, the CCAAC under Chairman Colin Neave AM convened a meeting in Melbourne on 27 February 2014 to table a draft Code of Conduct.

Industry representatives attended the meeting and a report will be made to members shortly.

FUEL PRICE BOARDS Motoring Clubs have made recent representations to the Federal Government about the fuel price boards not being transparent about the price of retail petrol at the pump.

As indicated in the December 2013 Viewpoint, MTA Queensland believes that there should be national fuel price board consistency.

At present, Federal and State Consumer Affairs Ministers have agreed to create a ’National Information Standard’ to ensure that fuel price boards display the actual retail fuel price - and not the discounted retail fuel price. Federal Small Business Minister Bruce Billson indicated that the Government is working on a proposal to put to State and Territory Ministers in the near future.

NEW MOTOR VEHICLE SALES

New motor vehicle sales for the start of the 2014 calendar year were disappointing. Seasonally adjusted according to Australian Bureau of Statistics data, there were 19,550 new sales. This was 1.2 percent less than December 2013 and 1.7 percent down on the same period last year.

All jurisdictions recorded a decline in the sale of new units compared with the previous month. However, New South Wales and the Australian Capital Territory experienced a strong upswing compared with January 2013.

The Federated Chamber of the Automotive Industries’ respected VFACTS indicates that nationally, business sales were down by a total of 7.8 percent. The most significant decline was in the light commercial category where sales were down 26.1 per cent. Purchases of SUVs were also down (11.5 per cent). However, business purchases in the passenger motor vehicle category rose 8 per cent.

Total private sales figures remained consistent with January 2013 figures.

STANDALONE LEGISLATION

Yes! Another update on the Motor Dealers and Chattel Auctioneers Bill (MD&CA Bill). We still wait - just a little longer - attainment of our standalone legislation. Don’t despair, progress is being made.

Mike Kennedy (Chair of the Used Car Division) and I appeared before the Parliamentary Legal and Consumer Safety Committee’s Hearings on the MD&CA Bill. We continued to build on our core policy recommendations relating to the need for consumer protections when second hand vehicles are purchased from an unlicensed used car trader or operating from unapproved premises. We provided statistical evidence that indicated that the majority of used car sales were by private treaty. The feedback about our presentation was that our statements provided the Committee with much to consider.

It was not all smooth on this advocacy front. In the lead up to - through the media - and at the Hearings we had to contend with a considered policy difference between MTA Queensland and our good friend the Royal Australian Automobile Club of Queensland (RACQ). The issue

in the RACQ’s view was that under the proposed legislation there was a significant reduction in the level of consumer protection caused by the removal of the legislative Statutory Warranty provisions for vehicles more than ten years old or that have travelled more than 160,000 kilometers or more.

This is not so.

Since 1 January 2011, Australian Consumer Law (ACL) has applied, making the provisions in the Property Agents and Motor Dealers Act 2000 (PAMDA) redundant. Under the ACL, when a consumer buys products and services, these come with automatic guarantees that they will work and do what is asked. If not, consumer rights apply. The Consumer Guarantee is in addition to any additional warranty that the Used Car Dealer may provide.

Of course, the ACL does not apply to fly-by-night back-yard operators - and that is our concern.

Mike and I were able to follow up some media reports with correct information and hopefully eased consumer concern. It was helpful when news bulletins carried the story that the Queensland Government and the MTA Queensland asserted that the automatic Consumer Guarantees applied when a second hand vehicle is bought from a licensed used car dealer.

The Committee’s report to Parliament is set down for 24 February - after the closing date for this Viewpoint. I expect the legislation will be debated in the March Parliamentary settings. This means this story will continue into the next Viewpoint.

RED TAPE REDUCTION

Members may not know of a new Australian Taxation Office (ATO) and Australian Post partnership innovation.

Tax File Numbers (TFN) can now be applied for online at www.ato.gov.au/ TFapply and verified at Australia Post retail outlets.

According to the Deputy Commissioner it’s as easy as completing the TFN application online, printing out the application summary and taking it to the nearest participating Australia Post retail outlet.

Additional services also are available at Australia Post such as updating a date of birth on an ATO record or providing notification of a deceased person.

SMALL BUSINESS WEEK

A date for Member’s schedules is the Queensland Small Business week. This has been set down for 1-6 September 2014. It is the second time it has been held and includes events across the state aimed at supporting small business.

Small business makes a significant contribution to Queensland’s economy. There are some 410,000 such enterprises employing more than one million people, which represents more than 50 per cent of all private sector employees. In this context, the automotive value chain has some 14,000 businesses employing in excess of 65,000 persons.

QUEENSLAND GOVERNMENT ECONOMIC STRATEGY

The Queensland Government has released a road map to achieve sustained levels of growth over the next decade. It is entitled Governing for Growth Economic Strategy and Action Plan for the next decade.

Members may access it at http://www.dsdip.qld.gov.au/ governingforgrowth It identifies some 100 new priority reforms, actions and programs aimed at driving the Queensland economy forward. I encourage Members to look at this document in the context of their enterprises and future plans.

PREMIERS BUSINESS ADVISORY FORUM

David Fraser, in his capacity as Chairman of the State’s peak motor industry body attended the recent Premier’s Business Forum.

Its focus was on ways to improve the Queensland Plan. One of the aspirations of the Plan is that in 30 years, to have half of the state’s projected 8 million population living outside the south east of Queensland.

The MTA Queensland membership is decentralised as is the entire automotive value chain. The motor trades are at the forefront in terms of service delivery. Mr Fraser indicated that to encourage population shift enterprise incentives must be provided to help business expand into growing communities to provide the services required.

March 2014 Motor Trader | 5

Policy/Viewpoint THE ECONOMY

Without doubt, the continuing drought is a drag on the State’s economy. Overall, however, the business surveys indicate increasing confidence. Confidence, however, does not always equate with increased sales and profits.

The CCIQ Westpac Pulse Survey (the Survey) relates specifically to Queensland economic circumstances.

It found that after a period of increasing confidence, that general business conditions and sales revenue rose to their highest levels in more than a year during the December quarter.

It should be noted however, that profitably is one indicator that is lagging and remains in the “underperformance” category. The expectation is that “it will take several quarters of improved sales before the profitability indicator improves.”

The best indicator of where the national economy is at is the

Reserve Bank cash rate. It remains at 2.5 per cent. The minutes of its 4 February meeting states: “the Board's judgment was once again that it would be prudent to keep interest rates unchanged.”

It went on to say “if the economy evolved broadly as expected, the most prudent course would likely be a period of stability in interest rates.”

PETROL PRICE INFORMATION-SHARING

The Australian Competition and Consumer Commission (ACCC) have been investigating the petrol price information -sharing arrangements through Informed Sources’ Oil Price Watch report service. The concern is that the information- sharing arrangements may reduce incentives for petrol companies to compete as aggressively on price as otherwise would be the case.

Divisional news Ben Chesterfield ERAQ

We have held our first meeting for the year and have some action items that will be carried out in the near future. It was great to see some new faces at the meeting.

We are in favour of a proposed engine reconditioners website which will include a national list of ERA members, technical forums and the ability to email all members. The committee agreed unanimously that the website will be of benefit to the ERAQ division.

VACC will create the website and each state will have administrative rights.

We have also agreed to do a mailout to all engine reconditioners in Qld to attempt to gain more members in this industry. We are looking at holding some further meetings off-site, maybe at some of our members' businesses, in order to attract more attendees.

An engine reconditioners' conference will be held on the Gold Coast from 25th - 28th September 2014. Venue 6 | Motor Trader March 2014

to be advised. The conference will be advertised in the Motor Trader and on the MTAQ Website.

I would like to send out some regular material with regard to technical tips.

Please send anything through that you think may be relevant to all.

AED

The mechanical division is very busy and as one of our largest divisions there is always feedback as to what we should be looking at within the division. I have met with Charlie Serchin and a couple of committee members and have some industry issues that will be tabled at our next meeting, with outcomes advised.

We have signed a couple of new members. Welcome aboard.

We have recently completed our submission for the workshop code of practice. For those who replied to our survey/questionnaire, we have used this input from our members to achieve the best outcome we could.

It is a complex investigation involving extensive gathering and legal economic analysis. The expectation is that the ACCC will report before the end of April.

Whilst on the subject of petrol, it seems the thorny subject of shopper dockets is back in the ACCC’s sights.

It seems it has received further complaints about shopper docket discounts by Coles and Woolworths in excess of four cents per litre.

The ACCC is currently examining if the current offers comply with the oligopolists’ December undertakings that limited discounts to no more than four cents a litre.

AND FINALLY...

That’s all for now and I’ll finish the draft schedule of the visit to speak with our Central Queensland and Northern Queensland Members.

Until next Viewpoint, Take care.

with Ben Chesterfield and Ian Cole We are currently pushing our Green Stamp audits, and I would like to see more of our membership take up this great initiative. Please contact the office to obtain more information.

I will be attempting to have a regular tech-tip letter to send out to our members, however we will be relying on you guys to give me any information you believe is relevant to our division.

Thanks to Brad and Phil from Burton Motors for their input on this idea.

NACA

The current hot topic is the change in direction from the RACQ for their repair management strategy, and further information can be obtained by registering your interest at racq.com/ selectedrepairers.

This is the way forward for the industry, and with the major insurers all playing with a different set of rules it is time for businesses to have processes in order to compete into the future. It is an exciting time and finally gives us the

Divisional news respect we deserve for our industry.

We held our body repair meeting last week and welcomed a new committee member to our ranks, Chris Agnew from Sommerville Smash Repairs on the Gold Coast. Welcome aboard Chris.

We are pushing Green Stamp to our members and the interest has been great. I have carried out the first panel shop Green Stamp in the south-east and Sommerville Smash Repairs achieved Level 3 on their first audit. Well done boys. If anyone else would like to be Green Stamped please make contact with myself or Katie in the office.

We welcome a couple of new members this month.

We are moving forward with shop grading and will keep you all advised as to the progress.

I am holding meetings in Rockhampton and Bundaberg late March/early April and will be presenting code of conduct, eMTA and estimating procedures, so keep an eye out for details of these events.

We are working hard behind the

scenes on some other initiatives and will be advising more about these in my next newsletter which I hope to have distributed within the next four weeks.

Ian Cole QMID

Due to Qld Transport issuing fines in February, the committee discussed clarification of Qld Transport motorcycle noise level compliance and roadworthy certificates. We are currently seeking a meeting with Qld Transport in order to clarify what is to be enforced.

Congratulations to Mark Goworek from Suzuki Australia on his appointment as a committee member of QMID.

APRD

The subject of an LKQ and Suncorp alliance is the main topic of discussion.

This is ongoing and any information sourced is being discussed on a national basis. The APRA national conference has been confirmed for Sydney in August.

RACQ REPAIRER UPDATE THE CHANGING FACE of the smash repair industry has prompted several of the insurance majors to change their repairer partnerships models.

Following the move by NRMA and IAG, RACQ Insurance Limited (RACQI) is inviting Expressions of Interest (EOI) from smash repairers to supply repair services with an aim of becoming a Selected Repairer.

The EOI is aimed at achieving a new repairer model across South-East Queensland and regional business centres in Queensland (Queensland rural centres are not affected by this EOI).

Only businesses that have successfully applied via the EOI process can be selected as an RACQI Selected Repairer. The EOI commenced on February 14 and will close at 5pm on March 14, 2014.

Further information can be obtained by registering interest at racq.com/selectedrepairers

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March 2014 Motor Trader | 7

QA

MTA &

Michael and Neil Hart

MT: How long have you been in the tyre business?

NEIL: My father worked for Dunlop for 30 years in Adelaide and when I was a kid I used to earn pocket money working in the tyre shop.

Then I did my apprenticeship as a motor mechanic. The workshop I worked in had its own wheel-alignment machine and tyre changing and balancing machine, and because of my background I was the natural one to do all that work. So even through my motor mechanic apprenticeship I was still doing tyres. After that I did a stint in the mines and eventually came to the Bob Jane organisation in 1983.

I opened a store at Southport in 1985 and ran that until 2001. Then I went out of the tyre business for about 18 months. I needed a seachange. I went up to Mackay and ran a charter boat business. It was great fun but you can’t make any money out of it! So I came back to the corporation and ran the Bob Jane Wheel Division in Qld for a couple of years, then the opportunity came up to buy this store at Beenleigh.

MICHAEL: I went to university for a while, but that wasn’t for me. Dad grabbed me by the ear one day and said ‘Come and work with me’ at the Southport business. He threw me an office shirt and away I went. I had worked weekends for a few years doing puncture repairs so I wasn’t alien to it.

When dad sold Southport in 2001, the new owner wanted to keep me on - I knew all the accounts and the customers and so on. Then an opportunity came up at the Mermaid Beach store, so I went there for a while. When Dad bought this store, I came here.

With three generations of the Hart family having been involved in the tyre industry, father and son team Neil and Michael Hart have a wealth of experience to call on as they run the Bob Jane T-Marts store in Beenleigh, south of Brisbane. MT catches up with them to find out what it’s like being part of the tyre industry and being a franchise of one of its most iconic names.

MT: How has the tyre business changed over the years?

MICHAEL: It’s a global market now and parallel imports have been an issue.

When the Australian dollar was at parity with the US, people would buy the tyre from America, freight it here, get it fitted here and it was still cheaper than buying the tyre in Australia.

NEIL: That was especially true on the high-ticket items. It wasn’t uncommon for a customer to walk in with tyres he’d bought in America under his arm and we’d then fit it for him. With the Internet, a lot of people are buying online, shopping online, getting quotes online. There’s such a diversification in sizes. Some cars can have four different sizes available on the same model. There’s no way of knowing what it is unless you physically go to your car and look at the size. You can’t tell off the internet. I think the diversification in sizes is going to make things more confusing. It also makes it more difficult regarding what stock you carry. Everybody wants everything done straight away and to cater for that is difficult. You have to carry a variety.

MICHAEL: Dad would have noticed his stock increase by a magnitude of six from when he opened his store in the ’80s. He would have had ten sizes in total then. Now there are ten brands in the one size and 200 sizes! And it’s $200,000 worth of stock compared to $40,000. Once upon a time, we wouldn’t stock any 4WD tyres at all.

There’d be the odd 4WD tyre we’d order in, but now if you look at our stock room, most of it is SUV wheels.

And that’s just in the last couple of years.

“I’VE BEEN IN THE BOB JANE SYSTEM FOR NEARLY 30 YEARS AND, IN MY OPINION, IF YOU’RE GOING TO BE IN THE TYRE INDUSTRY, IT’S THE BEST SYSTEM TO BE IN.” MT: What makes Bob Jane T-Marts Beenleigh stand out?

NEIL: Basically, the Bob Jane philosophy is that customer service is our main focus. We’re a franchise.

It’s our business. We are probably the cheapest across the board, but if you take price out of it, then I think the edge we’ve got is that we have the tyres you want in stock and we’ll get the job done.

MICHAEL: And it’s done properly the first time. Our staff are fully trained and we’ve got the best and latest equipment. The way I see it is simple: whatever brand you buy from us will be exactly the same as one you can buy anywhere else. On top of that, the market sets the price. So the thing that sets us apart is our customer service and the quality of the job. Also we have two of the best Road Force variation balancing machines that money can buy. We pride ourselves at this store of being a trouble-shooting, problem-solving store. A lot of the stores in surrounding areas will send their problem cars to us to fix.

MT: How many staff do you employ?

NEIL: We have 9 staff. All our staff go through our internal training but the secret is to employ people who are willing and who have a good attitude.

You’ve got to get a good team because staff are your biggest asset.

MICHAEL: We’d rather have someone who was a little bit slower but gets it right, looks smart and turns up on time every day with a smile on his face.

It helps that dad and I have a very similar outlook about the direction we’re going. We don’t butt heads or fight. Some father and son teams do and just can’t work together.

MT: Can you sum up what it’s like to be part of the Bob Jane group?

NEIL: I’ve been in the Bob Jane system for nearly 30 years and, in my opinion, if you’re going to be in the tyre industry, it’s the best system to be in. If there’s a problem and you put your hand up, they’re always there to help you. And it’s not just the organisation of the corporation. Other franchisees will get behind you and give you a hand. Even though we are, technically, opposition, it is a genuine family where if someone is really in strife, someone will give you a hand.

MT: What are your plans for the future?

NEIL: I’ve got a few years to go yet, but Michael has indicated he wants to buy this store after me and take it on.

MICHAEL: I’ll take it over when Dad’s had enough. I can see myself here for at least another 20 years.

March 2014 Motor Trader | 9

2013 Toyota Camry Hybrid

SUN SETS ON

TOYOTA

B

ACK AT THE beginning of January, Toyota released a statement announcing the news that the company had recorded a stellar 2013 in Australia.

The Corolla was the nation’s best-selling vehicle, selling 43,498 units; the company was market leader for the 11th consecutive year, and the Camry, built in Australia since 1987, had notched up another year - it’s 20th in a row - as the country’s best-selling mid-size car.

Go back a few more months, to June 2013, and Toyota Australia was reporting profits of $149.1million for 2012/13, and that its manufacturing arm had churned out nearly 100,000 cars that year, a whopping 70 per cent of which were being exported.

10 | Motor Trader March 2014

Travel back just a little further, to 2012, and there was news of a $330 million investment in a new plant to produce petrol and hybrid engines.

Things couldn’t be better then.

Business was booming.

Fast forward to February 2014.

Another announcement. More news.

But this time it wasn’t so good. Not good at all.

In what would appear to be a fatal body blow to Australian automotive manufacturing, Toyota announced that local production of the Camry, the Camry Hybrid and Aurion cars, as well as the production of four cylinder engines, would cease by the end of 2017.

Instead, the statement continued, Toyota - as Holden had done before it - would become a national sales and distribution company.

The decision was not based on any single factor, Toyota claimed. In a refrain that has become all too familiar, the company said that “the market and economic factors contributing to the decision included the unfavourable Australian dollar that makes exports unviable, high costs of manufacturing and low economies of scale for our vehicle production and local supplier base.

“Together with one of the most open and fragmented automotive markets in the world and increased competitiveness due to current and future Free Trade Agreements, it is not viable to continue building cars in Australia.”

Toyota Australia President and CEO, Max Yasuda, was joined by Toyota Motor Corporation President and CEO, Akio Toyoda, as he made the announcement.

“This is devastating news for all of our employees who have dedicated their lives to the company during the past 50 years,” said Mr Yasuda.

“We did everything that we could to transform our business, but the reality is that there are too many factors beyond our control that make it unviable to build cars in Australia.

“Although the company has made profits in the past, our manufacturing operations have continued to be loss making despite our best efforts.

“Our focus will now be to work with our employees, suppliers, government and the unions as we transition to a national sales and distribution company. Support services will be available to our employees and we will do everything that we can to minimise the impact of this decision on our employees and suppliers.”

“WE DID EVERYTHING THAT

WE COULD TO TRANSFORM OUR BUSINESS, BUT THE REALITY IS THAT THERE ARE TOO MANY FACTORS BEYOND OUR CONTROL THAT MAKE IT UNVIABLE TO BUILD CARS IN AUSTRALIA.”

Toyota Australia President and CEO, Max Yasuda

Toyota Australia Altona Plant

1967 Toyota KE10 Corolla

TOYOTA HISTORY IN AUSTRALIA AUSTRALIA HAS PLAYED an important role in the development of Toyota over a 50 year period.

Toyota Australia's origins go back to 1958 when Thiess Brothers imported the first LandCruisers for work on the Snowy Mountains Hydro-electric scheme.

The assembly of Toyota cars began in the Melbourne factory of Australian Motor Industries (later AMI-Toyota) in 1963 and within a decade the Corolla and Corona (replaced by Camry in 1987) were well established.

The commercial vehicle business became Thiess Toyota in 1971 while AMI Toyota began investing in an engine and stamping plant to consolidate its position as a high local content vehicle manufacturer.

In 1988 Toyota's local operations were unified to form Toyota Motor Corporation Australia and work began on restructuring and strengthening the group as a step towards achieving international competitiveness and building export business.

Toyota in 1994-95 consolidated vehicle production at its Altona plant in Melbourne.

The news essentially signals the end of automotive manufacturing in Australia - an industry which has provided employment to tens of thousands of workers directly with the carmakers, and tens of thousands more who work for firms producing components.

And the result of Toyota’s move could be calamitous.

Depending on who you listen to, job losses beyond the 2,500 which will disappear when production stops at Toyota’s Altona plant in Victoria could be in the tens of thousands.

The news, unsurprisingly, caused a political firestorm.

Labor leader Bill Shorten was scathing. “The closure of manufacturing operations at Australia’s last major motor vehicle producer is a national tragedy.

“By forcing Holden overseas, Mr Abbott has forced Toyota’s hand and cost 50,000 direct Australian jobs in the automotive industry. This is an economic catastrophe with a terrible human cost.”

When asked what he could offer those automotive industry employees on the morning after the announcement, Prime Minister Abbott seemed to hedge: “I can’t offer them false hope. What I can say is that our job as a government is to build a stronger economy; a stronger economy that enables people over time to go from good jobs to better jobs.

March 2014 Motor Trader | 11

“Now, I know that’s of little comfort to people who were hit with the devastating news from Toyota last night. Some consolation ought to be there in the fact that Toyota aren’t going tomorrow . . . They are going through until 2017.”

Cold comfort, and not much consolation one would think.

So who is to blame for the collapse of automotive manufacturing?

IS anyone to blame?

Toyota’s news hardly came as much of a shock. Back when Holden pulled the plug in December last year, Toyota was already flagging things were looking precarious when it said that Holden’s decision “. . . will place unprecedented pressure on the local supplier network and our ability to build cars in Australia.”

And that pressure finally told. The 'perfect storm' of negative factors - including a tough, small, new-car domestic market dominated by imported vehicles - in which dozens of vehicle brands compete for customers, has flattened everything in its path.

So what happens now?

For a start, the Productivity Commission, charged last year by the Abbott government to run an inquiry into the support of the automotive industry will, on the behest of the federal industry minister Ian Macfarlane, change its focus to the components manufacturers and the tens of thousands of workers employed there.

“There are some very world class component suppliers, both to Toyota and of course to Ford and Holden, but also who are already exporters," Mr Macfarlane told the ABC. “We need to see what we need to do to position them to continue and to grow the export component to 100 per cent.”

“The decision by Toyota Australia to cease manufacturing in 2017 is a very dark day for Australia,” said Richard Reilly, Chief Executive of the Federation of Automotive Products Manufacturers (FAPM). “Traditional automotive manufacturing will go completely. Our industry is devastated.”

1970 Toyota KE20 Corolla

MANUFACTURING WILL GO COMPLETELY. OUR INDUSTRY IS DEVASTATED.” The FAPM estimates up to 33,000 jobs in the supply chain will be affected.

In a hearing before the Productivity Commission in February, the FAPM said there was an enormous degree of uncertainty and distress within the automotive supply chain and that the manufacturing sector was in danger of disappearing. The FAPM contended that the Automotive New Markets Program – a program designed to provide assistance to automotive supply chain companies to diversify their customer base and/or product range - should be extended beyond its proposed closure in 2015-16 and that it should “continue even after the scheduled closure of vehicle manufacturers as the remaining automotive suppliers adapt their operations to a business environment that will have changed dramatically within a short period of time.”

As for those workers who have been building the cars for Ford, Holden and Toyota? Well, come the end of 2017 they will be out of work and, though governments both state and federal are negotiating on how to help them out, no one knows quite what will happen.

Toyota said it would commit to providing support to the industry as it prepares for the end of vehicle manufacturing.

“We will work with our key stakeholders to determine how to provide the best support to our employees, suppliers and local communities during the coming years,” said Mr Yasuda.

After a horror year for the industry, and some uncomfortable ones to come, they’re going to need it.

1985 Toyota AE80 Corolla Twin Cam

TOYOTA AUSTRALIA TIMELINE 1958 First 13 LandCruisers imported for use on the Snowy

Mountains Scheme 1959 First Toyota LandCruiser sold in Australia 1963 Toyota Tiara assembly begins 1964 Corona assembly begins 1967 Crown assembly begins 1968 Corolla assembly begins at Port Melbourne 1978 First engines built at Altona 1981 Altona begins volume production of body panels 1987 Camry replaces Corona at Port Melbourne Assembly Plant 1991 Toyota becomes Australian market leader 1992 One-millionth locally-built Toyota produced 1994 Corolla is first car built at the new Altona Assembly Plant.

1995 Camry enters production at Altona 1996 First Camry export shipments to the Middle East

12 | Motor Trader March 2014

“TRADITIONAL AUTOMOTIVE

2000 2001

2003

2004 2005 2007

2008

2010 2011

1999 Toyota AE110 Corolla Ultima Seca

Avalon production commences at Altona Prius launched in Australia 100,000th Camry exported to Saudi Arabia Toyota Australia’s 300,000th vehicle exported Toyota overall Australian market leader with sales of 186,370 vehicles Two-millionth locally built Toyota produced Toyota Australia builds the world’s 10 millionth Camry New TRD Aurion launched in Australia Tenth-generation Corolla launched in Australia New export record - 97,688 vehicles Toyota announces Australian Camry Hybrid production from 2010 Achieves all-time sales record - 238,983 vehicles Camry Hybrid, the first Australian built Hybrid is released New generation Camry launched

Source: http://www.toyota.com.au/toyota/company/history

News

CREATING NATIONAL AWARENESS WITH GREEN STAMP PROGRAM M TA QUEENSLAND IS pleased to announce that the Green Stamp Program now operates as a nationally unified program.

The new unified Green Stamp Program is an environmental initiative that will ensure automotive related businesses that operate in various states of Australia can adopt a nationwide environmentally conscious position via the Green Stamp Accreditation.

The accreditation program has been an avenue for automotive businesses to market themselves as going above and beyond environmental legislative requirements. The new, unified program is expected to become one of the leading environmental accreditation programs for the automotive industry in

WEBSITE A RICH RESOURCE FOR EMPLOYERS AND APPRENTICES WITH AN UNHEALTHY number of apprenticeships being cancelled before completion, the battle to find a way of keeping apprentices/trainees in the industry seems to never end.

One tool that will help in that battle is the job search website www.apprenticeshipcentral.com.au The site is designed to match employers and job seekers with the aim of building mutually beneficial, long-term partnerships.

For businesses, the site allows them to search through a job seeker’s résumé, advertise job vacancies for free, and provide specific job descriptions for those vacancies.

For trainees or apprentices, they can

Australia and will increase the awareness of environmentally responsible Members amongst the community.

Participation in a national program with national recognition will show the

community our industry’s commitment to environmental management and sustainability and will be a driving factor in changing the sometimes negative perceptions of the industry.

All accredited businesses will be eligible to self-market their business as ‘Green Stamp accredited’ and, as a national program with a unified image, the ability to promote the business as Green Stamp accredited will strengthen the position of accredited businesses in the automotive market.

If you would like to find out more about the Green Stamp Program contact MTAQ on 07 3237 8777 or email info@mtaq.com.au for your free self-assessment checklist.

use the site to search for jobs, create or upload their résumé, use the site’s links to discover more about the industry they’re interested in and even take literacy and numeracy assessments to see if they’re prepared for what the industry requires of them.

The website was created as a reaction to the growing frustrations of companies searching for apprentices who would be a good fit for their businesses, and also in recognition of the fact that potential trainees needed somewhere to go to find comprehensive information about the industry they were interested in, as well as jobs that were available.

“It was a response to lots of employers

asking for help and to give them a chance of finding the right person,” said Rod McShannon, General Manager Strategic Development for BUSY At Work, the developers of the website. “But the other side of it was there were good young people out there ready for a future but they didn’t know where to go. There was nowhere dedicated for apprentices.

That’s why we did this, to give them enough information to help them develop their résumé and to prepare them as much as we can.”

With all sectors of the automotive industry covered Mr McShannon said that there had already been a good uptake of the sites resources by the industry.

“It’s national and it’s free. It’s there to serve employers to help them get on with what they do. And it’s there to see if we can help young people to find the best fit for their future careers – to find not just a job but something they love to go and do every day.”

Go to www.apprenticeshipcentral. com.au for more information.

March 2014 Motor Trader | 13

This document is issued by Motor Trades Association of Australia Superannuation Fund Pty Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913).

Motor Trades Association of Australia Superannuation Fund Pty Limited has ownership interests in Industry Super Holdings Pty Ltd, ME Bank Pty Ltd and Superpartners Pty Ltd. The information provided is of a general nature and does not take into account your specific financial needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415. You should consider the PDS in making a decision.

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.

Model: 1966 BEDFORD J5 BUS Engine: CHEVY 350 V8 Owned: 5 YEARS Owner: COLLECTIVE

T

HERE ARE LOTS of ways to raise money for charity.

Raffles and fundraising dinners, selling cookies door-to-door, a charity auction - these are all noble ideas.

Or you could, as Carl Agnew does, raise money by doing something a little more extreme.

For Carl and his brother Chris are committed ‘bashers’ for Variety, the children's charity.

In fact, the owners of Sommerville Smash Repairs on the Gold Coast are stalwart members of that hardy group of men and women who clamber into old vehicles once a year to test themselves and their machines on a wild trek through the Aussie bush, all while raising quite astounding amounts of money - $40-$50,000 in a good year.

For those who don’t know, the Variety Bash is held every year to raise money for the Variety charity and the disadvantaged and special needs children it seeks to help.

And the rules are simple – every entrant has to raise at least $8000 and use a vehicle that is at least 30 years old that they don’t mind . . . well . . . being bashed up.

And Carl has a rather unique vehicle in which to undertake this annual outback odyssey - a 1966 Bedford bus.

So how did they get involved with the Variety Bash, and why the bus?

‘We knew some people that needed help and we knew of Variety so we looked into that and we were hooked,’ says Carl. ‘We had a great time doing it, saw some great country, met some great people and raised plenty of money.

16 | Motor Trader March 2014

“Out on the bash we actually go to schools who have put in for a grant for equipment and we get to kick a bit of footy with the kids - it’s good.

“From 2004 we were driving a Ford Galaxy, but the trip just grew and grew with friends who wanted to do it. So in 2009, we thought ‘bugger this’ let’s get a bus.”

This is no ordinary bus, mind you.

It has had a few eyebrow-raising ‘amendments’ - a viewing platform up top for one thing, and beer taps that poke from the side of the bus and feed the frosty beverage from kegs inside, for another.

“We do pull up and have a beer,” says Carl. “And when people break down we pull up and have a beer with them.

We’re not in a hurry on the Variety trips.”

Just as well, for the Bedford is hardly built for speed though with its Chevy V8 and the fact it weighs a pretty trim 3800kgs, it isn’t a complete tortoise.

“It doesn’t weigh much,” says Carl. “It’s all timber and aluminium other than the steel chassis.”

Which is good, since once you get into strife and are hung up somewhere, shifting a really hefty piece of machinery would be a problem.

“We’ve got into trouble a few times. There’s actually a

video of us on youtube trying to get back on the road on one trip. We split the bum of the bus that time.

We pushed it down a big dip onto the road but because its bum is so long it dragged and split right up the back.”

Over the past few years, the bus has become something of a party fixture on the Bash, but it is thanks to some generous souls that it got there at all.

“We found it in Auckland,” says Carl.

“It was an old school bus that had already done 10 Variety Bashes in New Zealand. It cost $7000, but the real cost was more like $20,000 by the time I got it shipped over here. So I rang everyone up - all the regulars that come with us - and we raised the money overnight.

“We ‘Australianised’ it when we got it over here.

We ripped out the old seats and put something more comfortable in. It did have a kitchen sink, but that had been used as a toilet so we got rid of that! And we put the cooler in for the kegs.”

Such is its reputation that some famous names have dropped by the bus, leaving scrawled messages of support on the walls.

“Dick Johnson and his boys helped us at a fundraising function,” says Carl. “And Tommy Raudonikos and Arthur Beetson came and helped us at a Birth of Origin Show.

“Another time we were out at Mt Isa having a few beers at

DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER? Contact Jonathan Nash at jonathann@ mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members.

a creek when Dave Gleeson from The Screaming Jets came out and had a jam with us.”

Outside of the Variety Bash, the bus has found a bit of work ferrying people to weddings and formals, but it’s the Bash where it truly belongs - raising money, eyebrows and perhaps a bit of hell along the way.

Long may it continue to rock and roll.

The Variety Bash takes place from Friday, August 8 to Sunday, August 17 this year. For more information go to www.variety.org.au/qld March 2014 Motor Trader | 17

Charity matters

MTAQ MEMBERS REVVED UP FOR CHARITABLE BASH V ARIETY IS A charity that provides assistance for children who are sick, disadvantaged or have special needs by providing equipment, programs and experiences that can help them live life to the fullest. One of the best known fundraising events the organisation holds is the Variety Bash - a motoring event which originated in 1985 when Dick Smith organised a group to travel in old cars from Sydney to Burketown while raising money for charity.

Participants in the Bash must have raised $8000 before they can take part and must also drive a car that is at least 30 years old.

The Bash itself is a trek through the Outback during which participants visit local towns, stop in at schools to visit kids and even hand out the equipment their fundraising has provided.

This year’s Bash is a special one.

A national Bash is being held and participants from across the country will meet up in Sydney on August 17.

With more than 1000 dusty old cars, full of tired but excited ‘Bashers’, expected to hit the city, it should be quite a sight.

And MTAQ members will be in the thick of it. Here are some of our members who are taking part.

Rod Pether and Graham Doig

18 YEARS AND STILL BASHING

ROD PETHER OF Rod Pether Motors in Townsville is an old hand at the Variety Bash - this year he’ll be crashing about the outback for the 18th time.

It’s become a ‘commitment’ he would find hard to break, not that he wants to.

“What got my attention about the 18 | Motor Trader March 2014

Bash was the charity – helping the kids,” he said. “Once you’re involved, it’s really hard not to be involved.”

Rod and his long-time Bash partner Graham Doig, of Doig Automotive, have been through four cars over the years - a VC Valiant, an HR Holden Panel Van, an XP Falcon and their current motor, an XE Falcon.

“You can take a support vehicle but we don’t do that. Our advantage is that Graham has his own business

BE IT VARIETY, The Endeavour Foundation, The Great Australian Ride or any number of other charitable organisations, every year many MTAQ members utilise special skills and interests to raise money for good causes.

In the next edition of Motor Trader, we will talk to some more of our members who take time from their businesses, and sometimes their families, to raise money for good causes.

specialising in Fords so, if we break down, he fixes the car and my job basically is to make sure he keeps his fluids up – so I look after the Esky!”

Rod has seen a few changes over the years as the Bash has grown in popularity, with the number of cars rising to more than 100 and as many as 500 people taking part, doubling the population of some of the small country towns they visit on the drive.

So after all these Bashes, Rod and Graham must be old hands – never getting into trouble on the dusty tracks and back roads.

“We do get lost sometimes,” chuckled Rod. “We all have CB radios and when the radio goes quiet and you can’t see any dust, you know you’re in trouble!

“They have safety checks in place though. Every car is checked in and out at stops and there’s a ‘sweep’ vehicle at the back of the Bash which comes in only after all the other cars.”

The chances are that Rod and Graham will keep on ‘Bashing’ – perhaps for another 18 years.

“It’s a lot of fun and very rewarding,” said Rod. Raising money and having a hoot with a bunch of mates. Sounds good to us.

A SMASHING DEBUT

FOR BRENDA GOSNEY, owner of Mark McHugh Bodyworks on the Gold Coast, the 2014 Variety Bash will be her debut at the event.

She won’t be going alone though.

Three pals are joining her on the trip and it’s something the group have been talking about doing for a long time.

“We’re four girls looking to do something crazy,” said Brenda.

“Variety is such a great charity and being in the motor industry it seemed to go hand in hand.”

“I did the Red Cross Bash many years ago. It was a similar sort of thing and it was just fantastic to see the kids in their schools and home - it was incredible to see their faces light up when all the cars pulled up.”

The team are known as The Smashettes - a name chosen to reflect the smash repair business that Brenda owns.

“We’ve been talking about doing it for years,” said Brenda. “But it was only when the NRMA sent out details of a Bash car, an HK Holden, for sale that really prompted us to say ‘Yes, let’s do this’.”

The car’s silver, green and black paint job reflects the colours of Brenda’s business and the work was carried out by Azko Nobel at the

SCARY CROWS TAKE FLIGHT

AILSA TRULSON, ALONG with friends Beryl Grunske, Chris Perry and Beth McGill have teamed up for a second time on the Bash.

Ailsa, of Trulson’s Mechanical in Bundaberg, and the team known as the ‘Scary Crows’, took their first tilt at

The Scary Crows team with the flag for being in the top 10 fundraisers

Kellee, Brenda, Pam and Belinda - The Smashettes

Sikkens Training Centre in Brisbane.

So far, the Smashettes have raised $12,000 but are hoping to raise more over the next few months.

“We’ve got our own businesses and we’ve all gone to our suppliers who have been very generous.”

Crunching around the outback

appears to hold no concerns for The Smashettes, and Brenda isn’t concerned, at all, about the potential for car trouble or getting lost.

“I’m sure we’ll find some boys to help us no matter what,” she chuckled.

“It’s amazing what low-cut tops can do!

The Bash will never be the same again!”

the event in 2012. Their vehicle of choice now, as then, is a pink and green 1974 Valiant, a car the ‘Scary Crows’ all chipped in to purchase and which Ailsa’s team at Trulson Mechanical worked on to get roadworthy.

“It was a rusted out when we got it,” said Ailsa. “But one of the girls on the Bash has a brother who is a welding specialist and and he got his guys to work on it and paint it for free.”

The 2012 Bash was a successful debut for the ‘Scary Crows’ who raised an astonishing $32,000 - a sum large enough to see them finish amongst the highest-placed fundraisers.

“Out of 104 cars last time, we were 9th highest fundraiser,” said Ailsa.

As for the 2012 trip itself it was the visits to small towns, the schools and the children of the outback which stick in Ailsa's mind.

“We stopped at a lot of small schools in the outback that we never even knew existed,” said Ailsa.

“And we gave out iPads, lots of white boards, books and so on.”

And after 10 days of the Bash?

“By the end of it we were exhausted,” said Ailsa. “But it was a lot of fun.”

The teams are always looking to raise more funds. If you can help, call their businesses!

March 2014 Motor Trader | 19

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.

ESSENTIALS Contents 22 Training matters 24 Members matters 26 Member profiles

BUCHAN STREET SERVICE CENTRE KAMSON MECHANICAL SERVICES WARWICK PANEL AND PAINT

28 Industrial relations

Justin Simpson and Dale Duffy

“I KNEW FROM THE

OUTSET HE WAS GOING TO BE GOOD BECAUSE OF HIS APPROACH AND HIS ATTITUDE - THE SORT OF GUY WHO IS REALLY HUNGRY AND PASSIONATE ABOUT THEIR APPRENTICESHIP.” everything and learn. He’s a sponge.

“I became aware that his school was doing an apprentice scheme that allowed two days’ a week work experience and I learned pretty quickly I had to sign him on as an apprentice.”

His trainer from the MTA Institute of Technology, James Dixon, is equally enthusiastic about Dale’s abilities.

“I knew from the outset he was going to be good because of his approach and his attitude - the sort of guy who is really hungry and passionate about their apprenticeship.

“I wish all my students were like that because it makes my job easier!”

No matter how Dale goes in the competition, his future success in the industry seems assured.

“I want to be involved with drag racing but more the crew side of things, tuning and so on - the sort of things we do at Horsepower Solutions."

March 2014 Motor Trader | 21

E S S E N T I A L S

MEMBERS

RAINEE MECHANIC DALE Duffy is just 16-years-old, yet the school-based apprentice is proving to be gifted beyond his years.

A student at St Edmund’s College in Ipswich, Dale’s knowledge has not only impressed some seasoned automotive professionals, it may have booked him on a trip to West Australia following his victory in the WorldSkills Australia Automotive Services regional competition at the end of last year.

The national finals will be held in Perth in September.

To take out the competition, Dale took part in several hours of automotive-related tasks and his victory is even more impressive when it is taken into account that he thought he was going to be facing some very different assignments.

“We got told we’d be taking the head off an engine, checking the bore size, inspecting for damage,” said Dale. “But it was actually about wheel bearings, brake pads, coolant tests and a battery test. It was completely different. Luckily I had been around cars so I knew how to do all that.”

“Been around cars” is a bit of an understatement. Dale’s father, Peter Duffy, is a champion drag racer who has his own business building hot rods and customising classic cars. Dale has been assisting him around his shop from a very early age and has even followed his father into drag racing too - becoming a champion himself in the junior categories.

“Dale’s been in the shed helping me since the age of about 7 or 8,” said Peter. “He’s been around cars all of his life and shows a real passion for it.

“He catches on quickly. I think he’ll do well. He has a lot of common sense.”

Competing in the national finals would see Dale battle against more experienced apprentices from around the country but his boss, Justin Simpson of Horsepower Solutions which specialises in engine building and development, including race engines - doesn’t see a problem.

“He’s like me when I was young,” he said. “He’s got to get his hands on

M E M B E R S

DALE'S VICTORY A TEST OF SKILL T

E S S E N T I A L S M E M B E R S

Training matters

'LADY TRADIES' A KEY TO M A CCORDING TO AUTO Skill Australia’s (ASA) figures, the automotive industry is suffering from critical trade skill shortages with 34,000 positions needing to be filled across a range of disciplines. The main areas include mechanics (19,000), panel beaters (4,000), spray painters (2,600) and auto electricians (850).

With only 4-5 per cent of trade apprenticeships in these areas currently

filled by women, it is, according to ASA, ‘imperative that the industry attracts more females’.

ASA is trying to address this issue via a new drive which includes asking women in the industry to take part in social media campaigns to encourage others to consider employment as a tradeswoman.

“Through our MAAP My Future – Girls in Auto initiative, Auto Skills Australia will be encouraging more

FRANCES McELLIGOTT AUTO ELECTRICAL AGE: 18 Frances McElligott started her school-based apprenticeship aged just 16. Now 18, she works full-time at Atherton Car Electrics in North Queensland as a second year apprentice and according to her MIT trainer Ted O’Brien, she is going to be “an excellent tradesperson”.

“She wants to do right every time,” said Ted. “She’s got a great personality and her work ethic is very good.”

It was an interest in the electrical side of the automotive industry, as well as answering an advert placed at her school by Atherton Car Electrics, that got her on her way.

“I was interested in physics and maths,” said Frances.

“And then I saw the ad. So I did some work experience and really liked it and thought I would give it a go.

“No jobs are ever the same. I’ve been working on alternators, starter motors, wiring up spotlights and I’m starting to learn a lot.”

“It’s a lot of fun working on the cars and interacting with customers. They can be surprised to see a young woman talk to them but a lot 22 | Motor Trader March 2014

women to enter the industry to help fill these skills shortages,” said Geoff Gwilym, CEO of Auto Skills Australia.

MTA Institute of Technology’s current roster of apprentices reflects the national statistic – 4.5 per cent of our automotive apprentices are women.

It’s a stat we’d love to change too.

In the meantime, Motor Trader magazine caught up with four ‘Lady Tradies’ being trained via MIT:

VERONICA LEPINATH AUTO ELECTRICAL AGE: 40

of them do say it is good to see a girl in the industry.”

So what were her friends’ reactions to her working in the automotive industry?

“They thought it was a bit different but I’ve always been a tomboy,” she said.

“My parents were surprised but they said as long as I am happy it was good.”

Frances works with business owner Jamie Ryan in the workshop but she has worked with male apprentices who have come through the business and their reaction to working with a young woman was a positive one.

“I got on with them really well,” said Frances. “I don’t see any reason why more women can’t come into the trade. It would be good to see more females.”

Veronica Lepinath comes a little late to the trade.

Though she has been working in the industry for 15 years with husband Nigel, Veronica decided only recently that learning a trade was the best way to help the couples' business, Ravenshoe Auto Electrical.

“It has been a very slow apprenticeship, and now I’m just getting the paperwork behind it,” she said with a chuckle. “We thought if I do the trade, then I can help out on the tools and be more useful and be more confident when I talk to people.”

Having only signed on to do her apprenticeship through MIT recently, Veronica has a fair way to go, but her experience tells her that more women should move into the industry.

“If the girls are interested in it then there’s no reason they can’t be involved,” she said. “I find people are quite accepting – as long as you know what you’re talking about and are honest.”

Veronica does have a slight link to the automotive trade in her past.

“My father was a bush

mechanic,” she said. “I remember when I was a young girl I used to go out and cover my hands with oil so I could look like I was working.

“I never thought I’d end up in the industry myself though. I never thought of it as a job option.”

How is she going now her apprenticeship is underway?

“I was a bit nervous but when we went through the overview of the course I thought ‘I can do that’ and ‘I’ve done a bit of that’ and I felt a lot more confident.

“It is a satisfying job to do. When people come in and you’ve got the knowhow to fix the problem for them and they go away smiling - smiling because you helped them - then it is a very satisfying job.”

20-year-old Emily Coyle is a 2nd Year Heavy Vehicle apprentice at Brisbane City Council’s Sherwood Bus Depot.

For Emily, becoming a mechanic was just about the only thing she wanted to do while growing up.

“I was always trying to pull apart anything I could get my hands on - whether it was bicycles, computers, whatever,” she said. “Then, when I was in High School, we were offered a work experience program and I worked at a Heavy Vehicle shop for about 3 weeks, and I really enjoyed that.”

From there, Emily’s future - a career in the automotive trade - was set.

Emily can’t see any reason why more

“My dad’s a carpenter and my mum’s a bookkeeper and they were supportive.

Dad is excited I’m going to be a tradie.”

And there were no concerns from her friends either, as the prospect of having a pal in the industry was, it seems, seen as a clear asset.

“All they asked was ‘Will you be able to fix my car’,” said Emily with a chuckle.

Working in an almost

KOLORA BREW SPARE PARTS INTERPRETING AGE: 19

her role brilliantly, leaving Michael Byenhof, her trainer from MIT, impressed.

“She really is brilliant,” said Michael. “I’ve watched her a few times now and she’s very thorough. Her customer service skills are beyond reproach.”

“It’s going really well,” said Kolora. “I’ve always liked communicating with people. I find it interesting how everything goes together and how it all works.”

However, it hasn’t all been plain sailing. Some people, said Kolora, do find it difficult to deal with a woman when they phone the spare parts department.

“Sometimes there can be an awkward silence,” she

said. “I think they think it’s either really cool that a girl's doing it or they might be a bit put off.

“Although it is harder to get their respect, once you’ve got it, it makes you feel really good. There are a lot of people who ring up now and specifically ask for me and want me to do their interpreting for them.

“It gives you a little bit of extra satisfaction knowing that people might have had a negative opinion of you at first, but if you can prove them wrong it is satisfying.”

As a youngster, Kolora thought about a mechanical trade, but reactions at school saw her give up on the idea.

“I wanted to be a mechanic

but being female it was harder to be taken seriously. At High School people would laugh and say that it was weird.

That put me off,” she said.

Fast forward a few years to her new job, and things couldn’t be more different.

“My friends thought it was really cool because they knew how interested I was in cars. My parents thought it was pretty awesome that I was getting into something I was interested in.”

So where does Kolora see herself in the future, once her apprenticeship is done?

“I’d like to work for Audi at some point, and do Parts Interpreting for them.

I own an Audi and they are awesome cars!”

Not very long ago, Kolora Brew was the Manager of a retail fashion store.

Now, the 19-year-old is a Spare Parts Interpreting apprentice for Madill’s Isuzu and is a few months into her training. It’s an unusual move, but an underlying interest in cars explains it.

“My dad restores old cars and I grew up around them,” she said. “I was getting restless and thought I’d have a look at what’s around and saw this job at Isuzu.”

And Kolora has taken to

March 2014 Motor Trader | 23

E S S E N T I A L S

women aren’t taking the opportunities to move into the automotive trades. Even some of the traditional reasons, like the strength aspect, are, said Emily, no longer valid.

“Strength can be built up and anyone can work out how to lift things. Nowadays, we have all sorts of things to help with lifting.”

As for the reaction of family to her career choice, there were no concerns raised.

exclusively all-male environment has not proven to be a hurdle, although reaction to her arrival in the workshop may have contributed to a minor, and temporary, change in behaviour by Emily’s male colleagues.

“They were watching their language - watching what they said,” said Emily with a laugh. “It doesn’t bother me. I’ve had a lot of guy mates and some of them class me as one of the guys.

“I enjoy the job a lot. There are a lot of good people."

As for the future, Emily has things pretty well planned.

“I would like to own my own business, my own garage, at some point.

"But before that I’d like to travel and gain as much experience as I can - the trade I’m doing is in quite high demand. We’ll see what happens after that."

EMILY COYLE HEAVY VEHICLE AGE: 20

M E M B E R S

MOTOR INDUSTRY SUCCESS

E S S E N T I A L S M E M B E R S

Member matters

MTAQ MEMBERS TURN THE SCREWS ON CRIME A NNETTE WATTS AND Mick Smith are the driving force behind a new project in Townsville that hopes to deal with the problem of number plate theft.

The MTAQ members, owners of three Caltex service stations in the Townsville area and, incidentally, ex-police officers, were getting fed up with the number of ‘drive-offs’ at their businesses by criminals using stolen plates, and decided to do something about it.

With reportedly as many as nine number plates being lifted a week, and police responding to 53 reported thefts over the past six months, the problem was certainly one that needed tackling.

Annette’s plan?

To band together with local service stations and car dealers and buy oneway screws to secure a car’s number plates – a solution that means the plates cannot be removed without the use of special equipment, making them near impossible to steal.

Oh yes, and install them for free for anyone that wanted them.

“Stolen cars and stolen number plates have cost us a lot of money

in the service station industry in the past couple of years,” said Annette.

“I thought this might help towards solving the problem.

“I approached all the Caltex service stations in town, then I called Holden dealer Tony Ireland and he approached all the dealers in town. We managed to raise about $3500.”

Many MTAQ members in the area signed up to Annette’s plan, including Parry Nissan, Key Motors and Motoco Group as well as Carmichael Motors.

Using ‘one-way’ screws is a simple, innovative idea and one that has been taken up enthusiastically by Townsville residents who came in droves to the town’s Reid Park to get the special screws fitted. More than 200 cars were completed on February 15, the first day of the project.

To remove the screws requires a special tool and Annette also organised the purchase of five of them which have now been donated to local police stations.

The success of the project so far means it is likely to become an ongoing venture, and the police, under the banner of Neighbourhood Watch, will take the reins going forward.

“We can’t continue sponsoring it every time,” said Annette. “But the police said they want to continue with it and what they plan to do in the future is to advertise that they’re going to be at the boat ramp one weekend, or the Magnetic Island ferry terminal - that sort of thing.”

According to Townsville police, number plate theft “is a great concern and this initiative will serve to reduce the incidents of crime involving stolen number plates.”

JARROD BACK ON TRACK AFTER INJURY

I

T’S BEEN A tough few months for Queensland Supermoto champion Jarrod Koppe from Future Sport Motorcycle in Townsville.

Having secured the 2012 title and scoring a number of other victories and firsts - including a third place finish in that year’s Queensland Dirt Track titles - Jarrod was looking at an even more successful 2013. True to form, he secured another Queensland Supermoto championship, but then things took a nasty turn.

A bad crash during practice in September damaged Jarrod's leg and put him out of action for several months.

24 | Motor Trader March 2014

“I shattered my heel, heel joint and ankle joint,” said Jarrod. “They couldn’t operate because of all the little pieces of bone. It’s been a long recovery.”

The injury may have temporarily put paid to racing but it did allow Jarrod to concentrate on the family business.

And Future Sport Motorcycle, established by Steve and Roslyn Koppe and now run by their children Jarrod, Rebecca, Rianna and Jessica, is a ‘family’ business in the truest sense.

For Jarrod though, the appeal of racing, even after the injury and layoff, drives him on and with the 2014 Queensland Supermoto championship

to kick off in April on the Gold Coast, he’s keen to get back to racing.

“I’m on the bike again but I haven’t done any races yet,” he said. “I’ll be just about ready to defend the title. I’ll be a bit rusty for sure, but I’ll give it a go.”

MT will keep readers posted on how Jarrod goes.

M E M B E R S E S S E N T I A L S

The unique Nissan Cube

David Noble at his workshop in Brisbane

DAVID'S NOBLE GESTURE “ T RAINING AUTOMOTIVE APPRENTICES relies on many things, including access to parts for the students to train with.

From engines and gearboxes - even entire cars - the MTA Institute of Technology (MIT) uses them all and, from time to time, receives those parts as donations from generous businesses.

One such business is Motorvation Automotive, owned and run by David Noble from his workshop in the Brisbane suburb of Herston.

UK-trained, the qualified mechanic and business owner started his career in the UK in the ’80s before moving to Australia where he worked for a number of businesses, and became an Auto Leaders franchise owner, before starting Motorvation Automotive.

His association with MTAQ goes back a decade and, though he has been in the trade for more than 25 years, he still utilises courses on offer from MIT. And it was at such a course that he realised he could help out.

“I was at the new MTAQ facility doing the Hybrid Electric course and I thought they might be able to use a couple of things,” said David.

“I donated a couple of engines from the Nissan Cube and a Porsche gearbox too. The engines are pretty modern - all aluminium, open-deck design with variable cam timing - I thought I

THE IDEA IS THAT IF I CAN HELP SOMEONE TO LEARN, IT WOULD BE GOOD FOR EVERYBODY. IF IT CAN HELP MTAQ TO TRAIN PEOPLE, THEN GREAT.” should send them to somebody who can make use of them.

“The idea is that if I can help someone to learn, it would be good for everybody. If it can help MIT to train people, then great.”

It's generosity that is greatly appreciated by MIT. “He had the opportunity to re-sell or recycle and make a bit of money on the resources but he provided them to us instead as a training aid,” said MIT Senior Trainer Marcello Riotto.

“It shows that there is a commitment out there from members, non-members and the mechanical industry in general who still want to support the training.”

The engines David donated came from the Nissan Cube - the uniquelooking car that he imports through his other business, Cube Cars.

“I was in Japan in 2007, saw one and thought ‘I have to have one’.” said David.

“It’s a great car. It has a 4.3m turning circle, the official fuel consumption is 6.1-litres per 100kms, they’ve got bags of space, dual airbags, anti-lock brakes, air-conditioning and central locking.

“People do either love them or hate them. When I first saw one, I loved it.

My wife didn’t at the time, but now she absolutely loves it too!”

Not that it was easy bringing the cars into the country.

“I discovered there are all sorts of restrictions on bringing in cars - all sorts of tests to be done to make sure it meets Australian rules,” he said.

“I spent five months researching and getting the Cube on the Specialist and Enthusiast Vehicles (SEV) register, then brought one here in 2009.

I was the first importer in the country.

Generally, rather than have cars in stock though, I'll bring them in to order. I concentrate a lot on parts.”

There may be another part to the business soon. David is using MIT training to develop into other areas.

“I'm doing the Approved Persons Course. I’m doing that because I want to get involved in car modifications, mainly for disabled people.

“My core business is Motorvation Automotive though. I service and do mechanical repairs on anything and everything. There are very few cars I’ll turn away.”

March 2014 Motor Trader | 25

E S S E N T I A L S M E M B E R S

Member profiles

Buchan Street Service Centre

Kamson Mechanical Services Location: 46 Rochester Drive, Mt Warren Park Type of business: Mechanical Number of employees: 4 Trading since: 1995 MTAQ member since: 2007 (Mt Warren Park)

Warwick Panel and Paint

26 | Motor Trader March 2014

How did you hear about the Motor Trades Association of Queensland (MTAQ)?

Heard about it from “Noah” when he was building the ark! Can’t remember that far back.

How has being an MTAQ member benefited your business?

People associate MTAQ with trust thereby having confidence with the member they do business with.

What has been your proudest business achievement to date?

Training apprentices who then go on to either run or manage successful businesses and to be acknowledged and thanked for the help, guidance and training they received.

What is the best thing about working in your industry?

After being in business for 18 years we are still seeing our original customers as well as their children’s and now grandchildren’s cars.

Type of business: Service station and mechanical repairs Number of employees: 3 Trading since: 2013 MTAQ member since: 2013

How has being an MTAQ member benefited your business?

Back-up support – very helpful with a big range of questions.

What has been your proudest business achievement to date?

Our first clients are now coming back to us for more work on their cars.

What is the best thing about working in your industry?

5pm.

What is the best piece of business advice you have ever given or been given?

Just keep going slowly, you will get there.

What would you say to someone thinking about joining MTAQ? Very good support and worth the fees.

What is the best piece of business advice you have ever given or been given?

Treat your customers the way you would like to be treated.

What would you say to someone thinking about joining MTAQ? Go for it! So much help and advice is always available.

Kamson Mechanical Services

Warwick Panel and Paint Location: 60 Grafton Street, Warwick Type of business: Smash repairer Number of employees: 12 MTAQ member since: 2013

How has being an MTAQ member benefited your business?

I can keep up to date with changes to the industry.

What is the best thing about working in your industry?

Two days are never the same. Keeps my working life fresh and exciting.

What has been your proudest business achievement to date?

Purchasing my business and seeing it grow over the years.

What would you say to someone thinking about joining MTAQ? Join. It’s good to keep on top of changes within the industry and the support you get is great.

March 2014 Motor Trader | 27

E S S E N T I A L S

Location: 129 Buchan Street, Bungalow, Cairns

How did you hear about the Motor Trades Association of Queensland (MTAQ)?

I have known about them for a long while.

M E M B E R S

Buchan Street Service Centre

E S S E N T I A L S M E M B E R S

Industrial relations

PUBLIC HOLIDAYS FOR THE REMAINDER OF 2014

TED KOWALSKI INDUSTRIAL RELATIONS MANAGER

Good Friday................................................. Friday 18th April Easter Saturday........................................... Saturday 19th April Easter Monday............................................Monday 21st April Anzac Day....................................................Friday 25th April Queen’s Birthday........................................Monday 9th June Brisbane Show Day..................................... Wednesday 13th August Labour Day.................................................. Monday 6th October G20 Summit*...............................................Friday 14th November Christmas Day.............................................Thursday 25th December Boxing Day...................................................Friday 26th December

TRADING HOURS FOR MOTOR VEHICLE SALES FOR THE REMAINDER OF 2014

Motor Vehicle Dealers in Brisbane, Ipswich, Logan, Beenleigh, Pine Rivers, Redland, Gold Coast, Redcliffe And Near North Coast (Shires of Noosa, Maroochy, Landsborough and Caboolture) May trade on the following gazetted public holidays i.e., Saturday 19th April, Monday 21st April, Monday 9th June, Wednesday 13th August, Friday 14th November, Friday 26th December from 8 am to 6 pm.

All dealers in the above areas must close on Friday 18th April, Friday 25th

April, Monday 6th October, Thursday 25th December and all Sundays.

MOTOR VEHICLE DEALERS IN THE REST OF QUEENSLAND (i.e., THOSE AREAS NOT LISTED ABOVE)

Must close on all gazetted public holidays i.e., Friday 18th April, Saturday 19th April, Monday 21st April, Friday 25th April, Monday 9th June, Monday 6th October, Thursday 25th December, Friday 26th December and all Sundays and local Show Days.

Note; G20 Summit Public Holiday only applies in Brisbane.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

City Central Automotive

Harald Kueckens & Bill Skliros

4 Trinity Street CAIRNS Q 4870

haraldkueckens@hotmail.com

AED

Dimension Servo Beenleigh

Lysie Marie Cheung Ching Man

40 Rochester Drive Mt Warren Park Q 4207

dimension.servo@optusnet.com.au

SSCSAQ

Eaglerider Brisbane

David Reece

45 Moss Street Slacks Creek Q 4127

dave@streetpro.com.au

RVID

FNQ Truck Repairs

Reece Osborne

15 Heysen Close, Redlynch Q 4870

fnqtruckrepairs@gmail.com

AED

Jmax Mechanical

Jeffery McMurray

3/79 Herbert Street Ingham Q 4850

sales@jmaxmechanical.com.au

AED

Lammermoor Convenience Centre Pty Ltd

Robert & Elizabeth Lilleboe

150 Scenic Hwy Lammermoor Q 4703

office@lccservo.com.au

SSCSAQ

Matilda Norman Park

Gokhan & Ayhan Koc

164 Bennetts Road Norman Park Q 4170

accounts@matildanormanpark.com.au

SSCSAQ

Rod’s Automotive Townsville

Mr Rodney Knapp

1-2/46 Camuglia Street GARBUTT Q 4814

info@rodsauto.com.au

AED

Supamerc

Peter Dever

1006 Beaudesert Road Coopers Plains Q 4108

peter@supamerc.com

UCD

28 | Motor Trader March 2014

Investment matters

MARKET WRAP

A

USTRALIAN EQUITIES TRACKED Asian markets lower this month as concerns around the sustainability of growth in the region were brought to focus (e.g. weak China PMI data) and the US Federal Reserve reduced its monthly asset purchases by another US$10b to US$65b late in the month.

The market always looked vulnerable to a slight pullback in recent months, and we have made the case that the very strong move in market valuations last year seemed unlikely to continue.

Instead returns would be driven by earnings this year, however January is a month without much earnings news so sentiment can move the market.

While it has been a rocky start to the year, we continue to have an overall positive view on markets for these reasons: • Liquidity remains strong: Low interest rates and a strong level of liquidity provide very strong support for the market. This is despite the slow unravelling of QE expected this year.

Strong money growth and a positive yield curve are supportive of equities.

• Earnings are improving and valuations are not stretched: While valuations are hardly cheap at current levels, they would not be classified as significantly overvalued. Especially as the direction of earnings estimates in the market is trending up and the number/quantum of downgrades are not as great as recent years.

• Sentiment, while improved, has further to run: On the basis that we are inclined to be more cautious when the market is bullish, it is important to assess the underlying sentiment of the market. While there is no doubt markets became a little more comfortable and relaxed last

year, we are still of the view that a significant level of caution prevails.

As QE is unravelling, we do expect more of a saw tooth move to the market as bond rates move up to counter an improving economic outlook. Furthermore, while we are not anticipating the emerging markets to be a major concern, the Chinese growth outlook will remain a critical issue over the year.

Given the prime driver of share prices this year will be earnings, we see increased importance on bottom-up drivers for individual companies. As such our current portfolio positioning is as follows: • Bottom-up analysis: We have been looking for companies that can control their profit outcomes via cost cutting, restructuring and other strategies. We note some of the opportunities below: - NAB—sell UK business or improve UK profitability to drive a step change in return on equity - Origin—complete LNG project to drive significantly improved profitability - Treasury Wines—Strong assetbacked valuation that could be improved through stronger operations or selling down assets - RIO/BHP—significant cost cutting and reduced capex to drive higher dividends/capital returns - Aurizon—productivity focus to drive improved returns on their assets.

• We remain attracted to those market segments that are experiencing clear top-line revenue growth such as those exposed to housing (Lend Lease), and equity market flows (Hendersons, Macquarie Bank).

• We currently hold companies who earn a large proportion of their

income offshore, as they will benefit when they transfer this income back to Australia due to the falling exchange rate. While this has been successful for us recently, we are cautious as share prices in these companies have enjoyed a strong run and the risk/return proposition begins to look more marginal.

• We are more cautious on high PE growth stocks following a strong re-rating last year. As QE is unravelled and bond yields rise, the relative attractiveness of this segment wanes. Albeit it is still a growth-constrained world and so we expect companies that can deliver sustainable double- digit growth will continue to deserve a premium.

• Stocks that pay high dividends have benefited from low interest rates and bond yields over the last year, as investors chased dividends as an alternative to low interest term deposits and bonds. However as QE unravels and interest rates show signs of normalising, we are underweight this segment of the market as these stocks will be more at risk.

DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above.

Investment in a Dalton Nicol Reid individually managed account can only be made on completion of all the required documentation.

Whilst Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within.

March 2014 Motor Trader | 29

REWRITING THE TEXTBOOK ON INTERSCHOOL SPORT A MOTOR SPORT ALTERNATIVE to traditional school sports is set to revolutionise school rivalries with the announcement of the Australian Schools Karting Championship (ASKC).

The ASKC is a three round racing series that will see school teams go head to head in a safe, cost effective motor sport competition.

Registration for the competition is $145 per team member to cover insurance, kart hire, race suits, helmets and competition fees with three drivers in each team.

According to ASKC organiser Gerald Chait, the concept was designed to introduce the benefits of motor sport to school aged students for a fraction of the cost.

"The Australian Schools Karting Championship highlights what makes racing great - teamwork, healthy competition, forming new friendships and having fun in the process," he said.

"It will be a great way for students to get a taste of motor sport without having to invest in helmets, race suits or their own kart but still compete for a great prize pool."

As well as school pride, the ASKC is offering a fantastic host of prizes including a test drive in an ART Race Kart, the chance to join a V8 Ute race pit crew for a weekend, a guided tour of kart makers Drew Price Engineering's facility to name a few.

The ASKC is also a great opportunity for young drivers and future drivers to get a better understanding of the dynamics of a vehicle and the effects of speed in a safe, controlled environment.

"By reinforcing that speed belongs on the track and not on the road through programs like the Australian Schools Karting Championship, we can give young motorists a healthier attitude towards driving," said Mr Chait.

A maximum of one Australian Karting Association licensed driver is permitted in each team to ensure every school has a fighting chance in the competition.

30 | Motor Trader March 2014

The ASKC is a three round racing series that will see school teams go head to head in a safe, cost effective motor sport competition

"We want to encourage those who are already involved in karting to introduce their mates to the sport but we also wanted it to be a fair contest," explained Mr Chait.

"The championship structure also emulates a fairly typical kart championship format with a few simplifications in order to give students an understanding of racing formats while still being easy to follow."

Round one, or the 'local' event will consist of practice sessions followed by a one-hour endurance race in which each team member will race for two 10-minute stints.

DATES AND VENUES Brisbane - 3:30PM Tuesday 6 May, Go Karting Brisbane Melbourne - 8:30AM Sunday 11 May, Le Mans Grand Prix Circuit Sydney - 3:30PM Tuesday 13 May, Venue TBA Canberra - 3:30PM Wednesday 14 May, Power Kart Raceway National Final - Saturday 31 May, Picton Kart Racing Track

Seven drivers from each local round will then progress to the second round, or the 'state' round which will be made up of qualifying, a heat race and a final race.

Members of the top two placed teams as well as the fastest outright driver from the local round will compete as individuals for a place in the national final.

The opening two rounds will occur in succession and are scheduled to be held outside of school hours to ensure no disruption to regular curriculum.

The third round, the national final, will see the top two placed drivers from each state and two wildcard entries come together to compete for the title of Australian Schools Karting Champion in two sprint races and a final.

The local and state rounds will take place in early May with the national final to be held at Picton, New South Wales on 31 May. Students and teachers are urged to enter on the ASKC website www.askc.com.au

Motorsport

ROCKY ROAD TO SUCCESS A LOT OF PEOPLE enjoy offroad driving at the weekend.

It’s as Australian as footy, beer and eating barbecued snags.

As with all things, though, there are different forms of off-road driving.

There’s the gentle kind - the jumping into the Jeep to crunch about on a dusty road or forest track for a couple of hours. And then there’s the more extreme version - the version which MTA Institute of Technology (MIT) trainer Steve Hudspith enjoys.

It’s known as 'rock-crawling' - a form of competition in which vehicles are used to traverse harsh terrain including rock piles, gullies and the occasional boulder the size of a house.

The vehicles used are, for the most part, heavily-modified versions of their on-road counterparts - the modifications allowing the car to perform quite outrageous feats while keeping the occupants - a driver and navigator - safe.

Steve has been competing in a modified HiLux. But even with careful planning, things do not always go to plan and the HiLux is currently in pieces, a result of a ding-dong battle with a particularly tricky track.

“We destroyed the front end,” said Steve. “The axle housing cracked, the axle exploded, the hubs broke. There’s about $1000 worth of damage.”

MIT trainer Steve Hudspith takes his Hi-Lux for a spin

“We roll over on a regular basis but most of our rollovers have been reasonably under control where it might be a flip backwards or a just a roll to the side.

“We’ve got internal and external cages, full harnesses and so forth.

And for some of the high-speed races we wear fire suits.”

Competitions are held over a weekend and are normally two or three

day events and they can be huge, with more than 8000 people attending the bigger events.

Steve normally takes part in smaller competitions, including the Queensland-based Tough Tracks 4WD Club competition.

“We’ve been involved with the Tough Tracks competition for three years,” said Steve. “Prior to that we were in the Suspension Stuff 4WD Challenge and we’ve done the King of the Rim competition too, which is a high-speed rock-crawling event.

“There are many different comps.

There’s just about a competition every weekend if you can get the time to travel there and keep your car running!

“Last year we were winning the series until we damaged the car.”

With the Hi-Lux currently ‘resting’, Steve has his eyes on a new vehicle.

“It can be an expensive sport,” he said. “About $30-40,000 has been spent on that HiLux even though I do a lot of the work myself – the fabrication and so on.”

“We’re choosing between a Vitara chassis or Jeep for the new car - with a V8 LS1 in it.”

That’s real power, but Steve has no concerns. “People do get hurt but the regulations are pretty tough these days.

It’s not really scary, it’s the adrenalin.

That’s why I do it.”

Motorsport Calendar V8 SUPERCARS

MOTO GP

Mar 13-16: NC Australian Grand Prix, Albert Park, Victoria Mar 28-30: Rd 2, Tasmania 400, Symmons Plains, Tasmania Apr 4-6: Rd 3, Winton 400, Winton, Victoria Apr 24-27: Rd 4, ITM 500 Auckland, Pukekohe, New Zealand

Mar 21-23: Rd 1, Qatar Losail International Circuit, Qatar Apr 11-13: Rd 2, Austin Circuit of the Americas, Austin, Texas Apr 25-27: Rd 3, Argentina, Autodromo Termas de Rio Hondo May 2-4: Rd 4, Spain, Jerez, Spain

FORMULA 1

WRC

Mar 14-16: Rd 1, Australian Grand Prix Albert Park, Melbourne Mar 28-30: Rd 2, Malaysian Grand Prix, Sepang Apr 4-6: Rd 3, Bahrain Grand Prix, Sakhir International Circuit Apr 18-20: Rd 4, Chinese Grand Prix, Shanghai

Mar 6-9: Rd 3, Rally Mexico, Leon Apr 3-6: Rd 4, Rally de Portugal, Faro May 8-11: Rd 5, Rally Argentina June 5-8: Rd 6, Rally d'Italia Sardegna

March 2014 Motor Trader | 31

News

from the Office of Fair Trading

UNLICENSED BACKYARD DEALERS ON THE OFFICE OF FAIR TRADING'S RADAR A FOCUS FOR the Office of Fair Trading (OFT) in recent months has been unlicensed backyard motor dealers who attend motor auctions and purchase used vehicles for resale.

Industry participants, and the Motor Trades Association of Queensland (MTAQ) in particular, have raised concerns about ‘backyarders’ and the impact they are having on legitimate motor dealers and consumers alike.

OFT’s response to these concerns is two-pronged – focusing on intelligence gathering and enforcement.

In late 2013 and early 2014 OFT inspectors conducted a series of educational visits to motor auction houses to discuss the issue of unlicensed motor dealers, and encourage legitimate motor dealers to pass on any information they have about backyarders. These educational visits also serve as a reminder for motor dealers and auctioneers of their obligations as licensees under the Property Agents and

Motor Dealers Act 2000 (PAMDA).

OFT’s most recent major operation targeting unlicensed motor dealing and odometer wind backs netted 39 court convictions and over $400,000 in fines.

Since then, OFT has continued to focus on unlicensed dealers as part of its routine operational tasks.

In the past two years, OFT has received 122 complaints outlining allegations of unlicensed backyard dealers, 59 complaints of misrepresentation under PAMDA and 206 complaints of misrepresentation under the Australian Consumer Law (ACL).

OFT has taken enforcement action against 61 individuals, which includes infringement notices and prosecutions in court.

OFT is keen to continue receiving information that will enable it to target this type of offending. The activities of unlicensed backyard dealers are a real risk to consumers and to the reputation

of Queensland’s motor vehicle industry.

When reporting backyarders to the OFT, you should include as much information as possible about the suspect, including their name, location and a description of the vehicles they are selling. You should also include your own details, so our investigators can follow-up with you for more information and to keep you updated as investigations progress.

The MTAQ will soon be launching a ‘dob in a backyarder’ webpage to assist with tracking down unlicensed backyard dealers. The new service will allow anyone to report unlicensed backyard dealers. The details will be passed on to OFT to help us track them down.

For more information about motor dealer licences, visit www.fairtrading. qld.gov.au or call us on 13 QGOV (13 74 68).

David McKarzel, Acting Executive Director, Office of Fair Trading

NEW TRAINING REQUIREMENTS ANNOUNCED

THE QUEENSLAND GOVERNMENT has amended the Property Agents and Motor Dealer Regulation 2001 to update training requirements for motor dealer licenses and motor salesperson registration certificates. The amendments accommodate the release of the new AUR12 Automotive Industry Retail, Service and Repair Training Package.

The licensing and registration regime for individual motor dealers and motor salespeople, including the wrecking categories of these licences/certificates, requires an applicant to complete sets of competency units selected from nationally recognised automotive training packages. Training can be obtained through nationally accredited Registered Training Organisations.

Prior to these amendments applicants for motor dealer licences 32 | Motor Trader March 2014

or motor salesperson registration certificates could satisfy training requirements by completing a set of required units selected from either the existing AUR05 training package, or the now obsolete AUR99 package.

The National Skills Standards Council endorsed the new AUR12 package in January 2013 to replace AUR05.

Registered Training Organisations are now required as part of the national accreditation framework to ensure their training is based on the new package.

The amendments made to the Property Agents and Motor Dealer Regulation 2001 ensure that applicants will now be able to rely on training in the new AUR12 units when applying for a licence or registration certificate.

Applicants will still be able to rely on AUR05 based qualifications.

However the obsolete AUR99 units

have been removed from the regulation as they are no longer suitable for demonstrating required competencies.

The AUR12 training package discontinues the AUR05 unit AURC341903A (Apply relevant finance, leasing and insurance contracts/ policies), as it covers activities that require an Australian credit licence.

The amendments remove this unit from the training requirement for licenses or registration certificates.

These changes will ensure that future applicants can more easily rely on qualifications based on the latest training package, and there will be no impact on existing licensees or registration certificate holders.

For more information contact the Office of Fair Trading on 13 QGOV (13 74 68) or visit www.fairtrading.qld.gov.au

Industry insight

USING NUMBERS TO GROW SALES, PROFIT, AND CASH M OST BUSINESS OWNERS seeking improvement are looking for business growth plans and strategies, and all kinds of small business growth advice is available. It’s important to focus on the product/service that you sell and the market for it. What’s also vital, is to understand the impact of the numbers in business, the numbers that guide you to the desired outcome i.e. sustainability, profit, good cash-flow and business value improvement.

If you want to overcome small business growth challenges, you need to know what your targets are, to ensure you achieve improved profit as well as sales growth. If you want to sell or exit your business, those doing due diligence will want to see numbers to substantiate a price, borrowings etc.

They will want to see that business financial controls are in place.

If numbers are so important, the next question is, which numbers?

Numbers are often thought of as typical financial reports, such as Profit and Loss and Balance Sheet. These are ‘results’ based numbers. The numbers that are more interesting and arguably more useful are those that ‘drive’ the results. They are the ones that set the framework for business growth strategies.

Numbers in business relate, not just to financial results, they relate to every aspect of a business as follows: Product/Service • Number of products/services sold • Number of enhancements/upgrades • Number of products added/deleted • Number of quotes issued • Number of jobs in progress

Marketing/Sales Number of dollars spent on marketing Number of leads/enquiries generated Number of prospects in your pipeline ROI of marketing spend i.e. how much did each enquiry cost to create Number of website visits, social media followers, likes, tweets, re-tweets, blog posts etc.

Numbers of deals done as a result of enquiries or sales conversion rate Sales Growth Percentage Operations/Finance • Number of products produced • Number of productive/unproductive labour hours • Number of hours spent on rework • Number of raw materials wasted • Number of jobs finished on time • Number of jobs without defects • Number of jobs finished on budget • Number of Work in Progress Days • Number of Inventory Days • Cost of Goods Percentage • Overheads Percentage • Number of Days Customers take to pay • Number of bad debts • Number of Days taken to pay Suppliers Human Resources • Staff Turnover • Staff sick days • Number of staff required to achieve growth • Number of Contractors required to get work done • Number of staff training events attended/hours • Number of Work Health and Safety events Customer Service • Number of new customers • Number of current customers • • • •

•

•

•

•

• • • • • •

Number of customers by class e.g.

A, B and C class – focus attention on A’s Number of major clients visited Number of compliments Number of complaints Customer retention rate Number of referrals from customers Number of customer testimonials Above are just some of the numbers you can use to drive efficiency and improvements in business. They are generally referred to as KPIs (Key Performance Indicators).

Focus on these numbers helps to drive a business in the right direction and keep things on track. Most of these numbers can be measured in good business systems. Once they are set up right and targets entered, you can manage by exception i.e. look only at those that fall outside the acceptable criteria. If you have small business growth and development in mind, you simply cannot have your eye on every single transaction, so you need to find ways to be more efficient and effective in order to reach your goals.

For help with deciding on your business KPIs, please feel free to call us and we’ll be happy to have a no obligation FREE discussion with you.

CFO On-Call is a team of financial and business advisors who work with open-minded people, committed to business growth and achieving success.

For help call us on 1300 36 24 36 or visit our website www.CFOonCall.com.au For a FREE copy of our E Book ‘The Seven Key Numbers that drive Profit and Cash Flow’ visit http://cfooncall.com.au/ about/7-key-numbers March 2014 Motor Trader | 33

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