Motor Trader, October 2014 by MTAQ IT

OCT

2014

A FORK IN THE ROAD

ORNY QUESTION OF

GOVERNMENT AND INDUSTRY CONSIDER THE TH

S T R O P IM R A C D E S U D N A W E N

MEMBERS CLASSIC: 1972 HQ ONE-TONNE UTE

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

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Contents Official Publication of the Motor Trades Association of Queensland

HEAD OFFICE Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 P.O. Box 4530, Eight Mile Plains, Qld 4113 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au EDITOR 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

EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777 SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually MOTOR TRADER PUBLISHING POLICY 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.

MTA QUEENSLAND ABN: 74 028 933 848

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CORPORATE PARTNERS

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From the editor Policy/Viewpoint Divisional news MTA Q&A GRAHAM KEIDGE: KEIDGES FARM MACHINERY Feature A FORK IN THE ROAD: NEW AND USED CAR IMPORTS News MERCEDES LAUNCH EVENT A CLASS APART LEGENDARY NAME POISED TO RETURN TO THE TRACK Members Classic BIG BLOCK THUNDER: 1972 HQ ONE-TONNE UTE NORMANTONâ&#x20AC;&#x2122;S SHOOTING STAR: DIANE REEVES

MEMBERS ESSENTIALS 18 Ag Show 2014 21 Training matters MIT APPRENTICES SHINE AT WORLDSKILLS 24 Member matters 26 Member profiles 29 Industrial relations 30 Investment matters MARKET WRAP 31 32

MT's Christmas gift guide Industry insight GET READY FOR GROWTH AND EXIT PLANNING October 2014 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

ELLO AND WELCOME to the October edition of Motor Trader magazine. The automotive industry continues to mull over quite what is to happen when the big manufacturers - Ford, Toyota and Holden - cease production over the next couple of years. The Productivity Commission's report into the industry was released in August and its discussion of new and used car imports became a hot topic across the country.

We take a look at the issues and where things may lead in our feature this month, starting on page 10. In MTA Q&A this month we talk to Graham Keidge from Keidge's Farm Machinery. An industry veteran with more than 50 years in the trade, Graham has some interesting insights into the agricultural industry. Our Members Classic this month focuses on Mark Meesen's Holden HQ one-tonne ute. As is often the case for for a member's classic vehicle, it isn't exactly a standard restoration job. Rather, Mark has turned this sturdy classic into a snarling, raging beast pumping out 650hp at the flywheel. Take a look on page 16. The Royal Agricultural Show took place in September and MT traveled out to Toowoomba to check out the event and catch up with a few of MTAQ's members who were there. It is a fascinating event with plenty going on, not least of which are the seminars and workshops designed to give the rural community an insight into the latest industry developments. Also this month, MT caught up with Diane Reeves who runs The Top

Service Station in Normanton in north Queensland. Diane has a remarkable story to share - it's not often MT gets to talk to a Commonwealth Games gold medallist! Check out Diane's story on page 24. Finally, two young MIT apprentices performed brilliantly at the national Worldskills competition in September, picking up Silver and Bronze in the VETiS category. MT chatted to Sam Brown and Dale Duffy about the event and their success. Read their story on page 22. I hope you enjoy this edition of Motor Trader and, as always, if you have a story you think is worth telling, want to appear in Member Profiles or have a classic car, bike or truck you would like to see featured, then please don't hesitate to contact me. Cheers,

Jonathan Nash jonathann@mtaq.com.au

SAVE THE DATE THE ANNUAL PRESIDENTâ&#x20AC;&#x2122;S Ball is the highlight on the automotive industryâ&#x20AC;&#x2122;s social calendar and the evening is almost upon us. On November 1, at the prestigious Hilton Brisbane, MTAQ members and guests will enjoy an evening featuring dinner, entertainment and dancing and an awards ceremony that will not only recognise the best and brightest trainees and apprentices at the MTA Institute of Technology, including our Apprentice of the Year, but will also acknowledge the amazing work of member businesses in the areas of innovation and community. Both the Innovation award and the Community Award have been created to recognise the business

2 | Motor Trader October 2014

creativity of MTAQ members and their involvement within the communities they serve. You can find out more about these new awards on page 15 and discover how to nominate your business, or a

fellow member's business. The President's Ball will, once again, be our chance to celebrate the achievements of members during another challenging year. We look forward to seeing you there.

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Policy/Viewpoint TAXATION

KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

VER THE PAST five months - accompanied by Andy O’Hearn (North Area Representative) - I’ve been meeting with Members in regional centres. We’ve been to Rockhampton, Cairns/Mareeba, Mount Isa and Mackay. In October, Andy and I will be in Emerald and in November will be in Townsville. These visits have been rewarding. It has given Members the opportunity to discuss issues important to them and for us the knowledge that the services and information we are providing is being utilised. In some instances we would have liked more Members present but this will improve. The intention is to make these visits a permanent arrangement.

ANNUAL GENERAL MEETINGS Over the last month, one of our duties was to attend to the responsibilities set out in our Rules relating to the Annual General meetings. These require attention to detail and I thank our staff for their diligence. On a regular basis I refer to our Rules as an Industrial Association of Employers. In doing this I am reminded of its objectives, particularly “to advocate, advance and protect the interests of employers”. It is the core of our being and your staff strives for that purpose for you. 4 | Motor Trader October 2014

As indicated in a Bulletin to you, the Mineral Resource Rent Tax Repeal and other Measures Bill 2014 received Royal Assent on 5th September 2014. Disappointingly, this included the abolition of the company loss carry-back provisions; reduction of the instant asset write-off, and the abolition of the accelerated depreciation for motor vehicles. The effective dates are 1 July 2013 for the abolition of the company loss carry; 1 January 2014 for the reduction of the instant asset write-off; and 1 January 2013 for the abolition of the accelerated depreciation for motor vehicles. The Australian Taxation Office (ATO) has advised that companies which have claimed the loss carryback provisions and are no longer eligible for this deduction will be contacted by the ATO about their circumstances. Amendments will be made to the affected assessments. Referring to the Instant Asset Write Off, taxpayers who have lodged the 2013/14 income year return should seek amendments to reduce their depreciation claim. The ATO has advised it does not intend to apply penalties or the shortfall interest charge if taxpayers request to amend their assessments within a reasonable period of time. Small businesses can call the ATO for advice about the changes on 13 28 66. The ATO intends to work closely with tax practitioners and industry on the administrative changes so they can provide assistance and advice to their clients. From the perspective of the many businesses in the automotive value chain, the loss of these measures is disappointing. It comes at a difficult time in the business cycle when the economic conditions are not robust. The MTA Queensland, in its policy submission to all political parties for the 2013 Federal Election, sought the retention of these measures. To be fair, the Coalition parties did say prior to the Federal Election that these measures would be either abolished or reduced. They were

linked to the Mineral Resources Tax which returned a mere $300 million instead of the anticipated $12 billion in revenue, making the measures virtually unfunded. Here in Queensland there’s good news for small businesses which incur pay-roll tax. The State Government has advised that from next year, Queensland businesses with an annual payroll tax liability of less than $20,000 will need to lodge payroll tax returns twice a year, instead of every month. This will be a saving in administration and resourcing for the applicable businesses.

TRAINING The Commonwealth Government has, over last two weeks, made significant training announcements. From 1 July 2015, a new Australian Apprenticeship Support Network (AASN) to lift apprenticeship completion rates will be established and funded. The AASN will undertake community employment outreach by working with employers, industry groups and local chambers of commerce to identify job opportunities and employer skills needs. In addition, the AASN will run two pilot programmes: the Training for Employment Scholarships and the Youth Employment Pathways. The new Network will provide a onestop-shop for employers, particularly small business, looking to hire a new apprentice suited to their business. The objectives of the AASN are to: • connect apprentices and employers through targeted job-matching; • provide advice about different course options and training delivery options; • deliver personalised mentoring and support to apprentices; • provide advice to businesses taking on apprentices, including their roles and responsibilities; manage the administration of an apprenticeship including the training contract; and • administer the Australian Apprenticeships Incentives Program including employer incentives and trade support loans. New Trade Support Loans offering up to $20,000 over the life of an

apprenticeship has been introduced to encourage and assist interested persons to start their careers with an apprenticeship and complete their qualification. The new loans are spread over four years and provide greater assistance by easing the financial burden in the early years of an apprenticeship when the apprentice’s income is often lower. Other measures include changes to the way the regulator, the Australian Skills Quality Authority (ASQA) operates. This includes cutting of red tape for high-performing training providers. This is to enable them to deliver the training that meets industry and the economy’s needs without constantly seeking approval from ASQA before offering new courses or making changes to the courses they are already delivering. At the end of the current contract period with the 12 Industry Skills Councils, a more contestable model for the development and maintenance of training packages will be introduced. Current ISCs may tender under this new model along with new groups.

DIGITAL AUDIO BROADCASTING DAB+ Commercial Radio Australia recently released its 2014 Digital Radio report. Interestingly, this indicated that 97,177 new vehicles have been sold with DAB+ digital radio. Sixteen different Australian vehicle brands offered DAB+ as either standard or an option. The number of vehicle brands with DAB+ has doubled in Australia since 2013 when only eight manufacturers supported DAB+ digital radio. Progress is expected to continue with 26 vehicle manufacturers internationally offering DAB+.

NEW MOTOR VEHICLE SALES The new motor vehicle market continues to tighten for businesses in this segment of the automotive value chain. The respected FCAI VFacts for August indicates that here in Queensland, 17,169 new units were sold, down 1,932 or 10.1 per cent compared with the same month in 2013. On a year to date basis, the slide continued with a 5.4 per cent decline. Nationally the decline was 5.5 percent for August 2014 and 2.5 per cent on

the year to date basis. Nationally, SUVs and light commercial vehicles were a popular choice for private buyers in August, with private purchases in these segments rising 5.6 and 8.9 per cent, respectively compared to August 2013. Private purchases of passenger cars, however, fell 15.7 per cent. Government purchases of SUVs increased 29.6 per cent and passenger car sales to government increased 1.3 per cent. Business purchases declined in all categories, with business buyers purchasing 6 per cent less passenger cars, 9.6 per cent less SUVs and 3.9 per cent less light commercial vehicles; compared to August 2013. The Australian Bureau of Statistics reflects VFacts’ data. Seasonally adjusted there were 17,869 new motor vehicle sales in Queensland, a decline of 2 per cent compared with the previous month of July. In contrast with August 2013, there was a slide of 8.7 per cent.

THE ECONOMY At the September meeting of the Reserve Bank Board, the cash rate was left at the historic low of 2.5 per cent for the thirteen month in a row. As said in previous Viewpoints, the outlook in the near to medium term is stability in interest rates. The most recent survey of business data indicated gradually improving business conditions and some recovery in household sentiment after a weaker period around midyear. As I write this Viewpoint, the focus of the economic news is on the Australian dollar which has hit a fresh six-month low of US90.03. There is much speculation whether it will continue to move in that direction to the mid US 80¢s. A lower Australian dollar would be welcome as in conjunction with lower interest rates it would encourage broader economic activity and help sectors hurt by the high currency. However, it is recognised that for importers, this may not be what they want to happen.

POLICY A consistent policy issue that we have been monitoring is progress on the Consultation Draft Motor Dealers and Chattel Auctioneers Regulation

2014 and of the Consultation Draft Agents Financial Administration Regulation 2014. In my regular meeting with the Office of Fair Trading (OFT) this was a key matter discussed. As indicated in previous Viewpoints, the OFT has held a series of Information Sessions in regional centres. I trust Members have been able to attend one of these. If not, the OFT intends to upload one of the sessions to its website. The new legislation and regulations will come into effect later this year and with it there are welcome reforms. This includes the diminution in compliance obligations such as the reduction in the number of forms needed for a motor vehicle sale. As the Executive Director of OFT Brian Bauer said in September’s Motor Trader, 14 forms will be replaced by 3 (three). In fact, most sales will be completed using 1 (one) form. The Productivity Commission’s Report relating to Australia’s Automotive Manufacturing Industry was released including the Government’s responses to its recommendations. This was advised to Members in a Bulletin. One of the recommendations related to the review of the Motor Standards Act 1989. As advised in a further Bulletin, the Federal Government has now released the Options Discussion Paper (ODP) 2014 Review of the Motor Standards Act (MSVA). I will not go into the detail here as it was included in the Bulletin which is on our website. I urge Members (including Motorcycle Dealers) to review the ODP and to please provide their views to me. The closing date for submissions is 20th October 2014, but please do not leave it to the last moment to have your say. It is important that MTA Queensland submits a considered response to this review that includes a comprehensive statement of the industry’s views. This Review is strategically important in policy terms. The Government’s response to it will set the framework for the future of the automotive industry for the next two decades or so. At the recent Premier’s Business Industry Forum (BIF) at which President David Fraser was a participant, the policy issue of industrial relations was a key subject discussed. As a consequence, October 2014 Motor Trader | 5

Policy/Viewpoint the Chamber of Commerce of Industry (CCIQ) is having an Industry Round Table to achieve a general consensus on providing a unified Queensland voice to the foreshadowed Federal Government’s Productivity Commission’s Inquiry into the Fair Work Act 2008. The Roundtable is timely. The World Economic Forum, which produces the Global Competitiveness Index, indicated that Australia, in terms of labour market efficiency, had slipped to 56th place from a high of 9th place in 2009-10. Specifically Australia has dropped to: • 125th for relative competitiveness of pay and productivity, from a peak of 26th in 2008-09; • 136th for rigidity in hiring & firing practices, compared to 46th in

2008-09; • 132nd for the flexibility of wage determination, down from 75th in 2008-09; • 109th for the co-operation in labour-employer relations, compared to 37th in 2008-09; and • 50th for the competitiveness of redundancy costs, from a high of 6th in 2011-12. Workplace Relations reform has been on our policy agenda for each of these BIFs and has been and an issue in other relevant submissions. The CCIQ’s Round table is on 2nd October, 2014 which President David Fraser and I will attend. The Competition and Consumer Amendment (Industry Code Penalties) Bill 2014 has been passed by both houses of the Australian Parliament.

Divisional news Ben Chesterfield NACA We are continuing to sign up more new members, which is great to see. Welcome aboard to all of you. I would like to advise we held the NACA AGM on Tuesday September 23. The attendance was appalling - we had the committee plus one member. I would like to sincerely thank the outgoing Committee for their assistance and especially Mark Brady for his help and support over the years. I have been in constant contact with a number of insurers on a raft of issues, and it is good to know that we have a conduit to discuss matters. I recently attended the Holden Collision repair forum. It was really good to see some of our members in attendance. These are the type of events that we should be attending. A review of the Code of Conduct has now been completed. The Code Administration Committee has now finalised their discussions on the changes to the Code. Both parties will now provide their respective bodies with the findings of the discussions prior to a formal release to the industry. The Code Administration Committee 6 | Motor Trader October 2014

is also required to advise the Small Business Minister of the outcomes. The external review of the code has been publicly available since February 4, 2014 at www.abrcodecom.au Please note that IDRs can no longer be lodged on the Insurer Watch website. There is a short-term manual process in place for lodging code disputes (IDRs), with the view to being able to lodge them via the Code website in the very near future. We will keep you updated on this. As you are aware, we recently distributed all the IDR forms. We are working on hosting an industry repair forum, which we are hoping to hold prior to the end of November. I would welcome any feedback. We will distribute meeting details as soon as we can.

AED From within MTAQ there are some initiatives we are involved in, and I would like to give a quick overview so that everyone is aware of the work that is done, maybe without your knowledge, behind the scenes. We have a seat on the Queensland Automotive Working project with Queensland Transport and a number

The reforms, which will form part of the greater Competition and Consumer Act 2010, provides the Australian Competition and Consumer Commission with more power in issuing penalties for non-compliance of the Franchising Code of Conduct and not other industry codes. It takes effect from 1 January, 2015.

REGIONAL VISIT Andy O'Hearn and I will be in Emerald on Monday 6th and Tuesday 7th October for the General Meeting on the Monday followed by discussions the next day. This will be the second time we’ve been to an inland centre and look forward to speaking with Members and hearing their issues. To all, take care.

with Ben Chesterfield and Ian Cole of other stakeholders. We meet three times a year and some of the recent discussion has been around AIS, and some changes in that arena. The main change has been the new code of practice for AIS, and the fact that all updates will now be on the TMR website, so please make sure that you keep an eye on this for regular updates. TMR have advised we will be kept in the loop with regard to any changes, so I will ensure that these are sent on as a matter of urgency. The new code came into effect in July 2014. At the last meeting the subject of D shackles was raised. I’m sure you have all seen some of the media hype around this - I know that I have taken a lot of calls, but am happy to advise that it is a load of hot air. The DTMR website uses the word ‘recommends’. This is not legislation. We have been invited to have a seat on the new repairers consultative committee. Whilst this committee is still in its infancy, at the initial meeting the subject of changes within the process for application for AIS came up and we welcomed the idea of these changes. Any relevant information will be communicated in due course.

We have also sent out, on a few occasions, the link to check rego status. The abolishment of rego labels comes into play on Oct 1, 2014, so please make sure you have this link. If you need us to resend it please advise. Today, more than ever, automotive technology will require tomorrow’s automotive diagnostic technicians to be able to service and repair a range of sophisticated contemporary motor vehicles and equipment. There is a wide range of programs and training opportunities suited to advancements in automotive technology, industry growth and business development. I urge all of you to think about where this industry is heading. I am happy to take on board any ideas, complaints or compliments, so please make contact and use your membership to your advantage.

ERAQ Well, the conference that has been a long time coming has been and gone. I was unable to attend, however, I believe it was a success. More news on this will be distributed in the near future. I was out west recently and while it

was good to hear some positive stories on the industry, we still need feedback from you with regard to this specialist division and the way forward to ensure our viability is maintained.

Ian Cole ARD In my contact with members, it appears that some could not attend the information sessions on the PAMDA split conducted by the OFT. For those who could not attend there is a summary of changes on the OFT website and also a youtube video to be posted. Please make yourself aware of the changes as it could affect your business.

TUDQ The AGM was held recently and welcomed the new committee. I would like to thank the outgoing committee members for their efforts and their service. A subcommittee has been formed to examine and provide feedback to ASA regarding industry training thank you to all participants. There are some new topics on the agenda for this division and we will be

addressing these industry issues in the near future. I would also like to remind you that the deletion of rego labels in Qld is October 1, 2014. For those members who are not using the Queensland Transport link I would recommend that you start using it immediately and integrate it into your service procedures.

RVID Thanks to all who attended the RVID AGM - it was the best attended meeting for this division for some time. It was good to see some new faces at the meeting and I hope this will lead to a more pro-active division in the future. Please keep the lines of communication open and forward any input to the divisional chairman or make contact with me.

AUTO SKILLS AUSTRALIA To all divisions who received the presentation from Auto Skills Australia at their respective AGM – have some input into industry training developments and forward your feedback to ASA.

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October 2014 Motor Trader | 7

MT: What services and products does Keidges Farm Machinery supply? GK: We supply new tractors, used

tractors, general farm machinery such as slashers, pumps, filters and all sorts of pipefittings. We also manufacture and supply the Aussie Post Driver, which we sell across most of Australia.

MT: When and how did the company start? GK: My parents started the business in 1936 selling cars as well as Oliver and Case tractors. I started work there in December 1960 and completed my automotive apprenticeship which had been expanded to cover farm machinery. In 1967, after a fire destroyed our premises ,we decided to move out of the car business and expand into the agricultural industry. My brother and I took over the company in 1975. We also owned a service station and in 1985 my brother took over that while I took over the agricultural side of the business.

MT: How has the industry changed in your time? GK: The technology has certainly

Graham Keidge with one of his company's Aussie Post Drivers

changed - computers are part of the industry now. But we do have problems with computers in the machinery; especially with the extreme heat and dust conditions we have in Queensland. We talk to people in the field, and I get feedback from field agents, and some of them have been down for 5 or 6 days waiting for a technician to reach them. Service facilities can be an issue too. The service equipment needed is expensive for dealers to carry, so smaller dealers are just not carrying it. So, the technology has increased and the future is in computers but there has to be more localised service support.

Graham Keidge has been in the Agricultural Machinery industry for decades. His business, Keidges Farm Machinery, was started in 1936 by his parents and has become a fixture of the rural community in South East Queensland, serving customers across the State and the country. Some tractors coming from overseas don't have computers and that's actually a plus for a lot of the country people - if something does go wrong, they can fix the problem themselves. We have a range of tractors from China which are very good, don't have computers, and the farmers like them. The worst that will happen is the battery will go flat.

MT: What are your big-selling products? GK: Our Aussie Post Drivers represent 60 per cent of our sales across the country. After that, it's a mix of tractors, slashers, pumping gear and cultivators.

MT: Can you tell me about the Aussie Post Driver? GK: We looked at this about 20 years ago and found farmers were looking for something better than posthole diggers. There were a number of post drivers on the market, but they were a bit technical in the way they operated. We designed a simple, very low-maintenance machine, built a couple, put them out onto the market to test them, and went into production from there. You can put them on tractors, on excavators and at the end of last year we even mounted one on the back of a Land Rover for a particular application. It has been well accepted and we may look at selling them abroad. Keeping up with the Australian market is keeping us on our toes though.

MT: Who are your customers? GK: 40 years ago they were predominantly dairy farms in the area, but our equipment goes anywhere now. The Post Drivers go to small operators and big conglomerate companies.

“MY BROTHER AND I TOOK OVER THE COMPANY IN 1975. WE ALSO OWNED A SERVICE STATION AND IN 1985 MY BROTHER TOOK OVER THAT WHILE I TOOK OVER THE AGRICULTURAL SIDE OF THE BUSINESS.” MT: Queensland has been in a drought for some time now. How has this affected the community and the business? GK: I think we now have 85 per cent

of the State in drought. Talking to people at recent agricultural show field days, they say it's the worst they've seen. It is certainly the worst I have seen. Normally, you'll get a drought that will knock out part of the State but currently it's right across QLD and NSW. The grass isn't growing, the weeds aren't growing, so farmers aren't slashing and they don't have to spray. It's certainly knocked people around. Further out to the West, they've run out of feed for cattle and in some cases they've run out of food for people and they're relying on hampers and food parcels to keep going. Some of those areas haven't seen rain for years. I spoke to someone out at the Westtech agricultural show recently and he told me his two-and-half-year-old son hasn't seen rain. It's a real concern and it has affected everything.

MT: Is your family involved in the business? GK: My wife does help on the administration side of things and with pick-ups and drop-offs. Our three

daughters have other interests but do have some input into the business.

MT: How many staff do you have? GK: We have seven employees at the moment. We have a mobile service technician, a couple in the factory, another in the workshop and another in spare parts. Because of the drought we've had to drop some staff. We don't like to do that but you can only hold them for so long. There wouldn't be a dealership that hasn't had to do that.

MT: What does the future hold for Keidges Agricultural Machinery? GK: There is a market abroad for our Post Drivers and there is still a pretty fair market in Australia too. We have a few ideas in the pipeline for what we could do with the them. However, how long is the drought going to hang on for? We've been saying for the last 12 to 18 months that it is going to rain but it is so patchy. We've had people who have wanted to buy equipment for the last 18 months to two years but they've put that on hold so they can buy feed and keep their cattle going. I don't really have an answer for that.

MT: What do you do in your spare time, if indeed you have any? GK: I have two grand kids! But besides them, I do stage lighting for theatre productions, plays, open-air concerts – anything like that. I've been out to Charleville and Kingaroy to do work out there. Dad used to do it years ago for one of the churches and it just grew from there. I couldn't even guess the number I've done over the years but we do about a dozen or so events a year. It's something different! October 2014 Motor Trader | 9

A FORK IN THE ROAD With the demise of major automotive manufacturing in Australia, the Government and industry are turning their attention to what happens next.

T’S BEEN A challenging and unnerving year for the automotive industry in Australia. The news that the manufacturing majors - Ford, Holden and Toyota - will cease production by the end of 2017 came as a shock, causing much angst for everyone in the industry. The tremors of those announcements still reverberate. In the midst of these ‘end of manufacturing’ announcements, the Productivity Commission held a review of the automotive industry - a review that concluded in March and whose findings and recommendations were released at the end of August. And it is those recommendations that have caused another bout of hand-wringing - the demise of manufacturing caused a major reassessment of what the Commission should be analysing and what direction its recommendations should take. Analysis in the days following the release of the Commission’s report ranged from calm and considered commentary that focused on the detail of what was being recommended and the government’s response to it, to expressions of imminent industry Armageddon as ‘parallel’

10 | Motor Trader October 2014

“THE FEDERAL GOVERNMENT’S

MINISTER FOR INDUSTRY STATED THAT THE GOVERNMENT WOULD BE MINDFUL OF THE NEED TO MAINTAIN THE HIGHEST SAFEGUARDS FOR CONSUMERS AND THE IMPACT OF ANY CHANGES ON THE DOMESTIC CAR RETAIL MARKET.”

imports and foreign used cars were set to flood Australia. The Productivity Commission’s recommendations were wide-ranging, and although some were self-evident - including the recommendation that financial support for manufacturers should end and that policies requiring government agencies to purchase vehicles manufactured in Australia should be abandoned - the others, which looked beyond the manufacturers’ demise, were the cause of the consternation.

Included among those were that the Australian Government should ‘progressively relax the restrictions on the importation of second-hand passenger and light commercial vehicles’ and that these might include: • The removal from the customs tariff of the $12,000 duty on imported second-hand vehicles. • Accelerate the harmonisation of Australian Design Rules with the United Nations Commission for Europe (UNECE) Regulations and the mutual recognition of other appropriate vehicle standards. • Remove the five per cent tariff on imported passenger and light commercial new vehicles. The report suggested that any new laws commence in 2018 - after the manufacturers have closed - and apply to vehicles produced no earlier than five years prior to the application date for importation, but it is these recommendations that caused such a storm. Some commentators were scathing of the Commission’s report and, apparently, the government’s reaction to it. Some declared the Productivity Commission had delivered little of substance in their report and had shown a complete lack of understanding about the automotive industry. Ian MacFarlane, the federal government’s Minister for Industry stated that the government would be ‘mindful of the need to maintain the highest safeguards for consumers

“THE ROOT OF THE MISCONCEPTION IS CONSUMERS BELIEVE DEALERS MAKE ALL THE MONEY ON NEW CARS SOLD AND THAT BY GOING TO AN OVERSEAS SUPPLIER THEY WILL IMPROVE THE TRANSACTION PRICE, BUT THIS IS SIMPLY NOT TRUE.”

and the impact of any changes on the domestic car retail market,’ and that the ‘government has no intention of allowing Australia to become the dumping ground for other countries’ old second hand vehicles.” He added that issues raised in the Commission’s report would be considered in detail as part of the Government’s review of the Motor Vehicle Standards Act 1989, the legislation which delivers national vehicle standards for new motor vehicles and regulates the first supply of used imported vehicles to the Australian market. The Act is due to be reviewed by the end of the year and the MTAQ and associations including the Australian Automotive Dealer Association (AADA) will be making submissions to government on a variety of issues. The reason for the blunt ‘dumping ground’ remark would appear to revolve around the New Zealand experience. New Zealand relaxed its importation restrictions some years ago and, to some, the result has been disastrous, with vehicle age, safety and compliance issues considered particularly troubling. Used imported vehicles (many from Japan) make up nearly 50 per cent of the New Zealand fleet and boast an average age of more than 13 years. Anecdotal evidence of cars that have been damaged and sold on, or which have falsified odometer readings, do not inspire confidence. “We are very unlikely to go down the path of secondhand imports,” stated Jamie Briggs, Assistant Minister for Infrastructure and Regional Development. “When I first got into this job I was inclined to look at second-hand imports but the evidence we have seen from the experience in New Zealand has been that you get a worse safety outcome, you get an older fleet of vehicles and you actually add red tape because you would have to have a compliance regime as you import them.” As for importing new cars, AADA - the association that represents the nation’s new car dealers - recognises that at the very top end of the new car market, consumers could make savings by importing from overseas. However, it also says that in the popular, volume, new car segments, current Australian prices stack up well against the competition,

October 2014 Motor Trader | 11

citybrabus / Shutterstock.com

“IF THE GOVERNMENT’S ULTIMATE

WISH IS THAT THE AUSTRALIAN PUBLIC BE ABLE TO GET THEIR HANDS ON NEW, AFFORDABLE VEHICLES, THEN THERE IS ONE ACTION THEY COULD TAKE ALMOST IMMEDIATELY – REMOVAL OF THE LUXURY CAR TAX (LCT).”

with the country’s hyper-competitive market (in which 67 brands, and hundreds of models, battle for the consumer dollar) forcing prices lower. “Consumers in Australia should be able to buy cars at the cheapest possible price,” said AADA Chairman Ian Field. “And our industry would argue we have the most competitive industry in the world.” “The root of the misconception is consumers believe Dealers make all the money on new cars sold and that by going to an overseas supplier they will improve the transaction price, but this is simply not true.” It’s a view echoed by the Federal Chamber of Automotive Industries (FCAI). “Australia has the most competitive new car market in the world and this competition brings with it the very latest environmental and safety technologies for consumers,” said FCAI Chief Executive Tony Weber. “In addition, the manufacturers of vehicles made for sale in Australia have established comprehensive service environments, which provide consumers with a high-level of support. This includes the significant investment in the tools and labour force training needed to maintain a modern vehicle.” Even if relaxed importation rules for new cars does happen, for the Dealer there may not be much of a change. Though AADA says some Dealers are concerned that nondealers may import new cars in bulk and sell them privately (AADA will make submissions to the Government suggesting that it is not in the public’s interest to allow this to happen), the questions surrounding the importation of ‘parallel imports’ - such as those concerning insurance, servicing, 12 | Motor Trader October 2014

citybrabus / Shutterstock.com

parts, finance, compliance and a myriad others – may mean that, for the general public, the benefits of purchasing from a local, physical dealership are too great to dismiss. And should some believe it to be more affordable to import internationally-compliant new cars, well, those cars will still need servicing, will still need parts, will still need the expertise of the Dealer. As the shake-up of the automotive industry continues, there will likely be more concerns raised, but if the Government’s ultimate wish is that the Australian public be able to get their hands on new, affordable vehicles, then there is one action they could take almost immediately – removal of the Luxury Car Tax (LCT). As commentators were happy to point out in the weeks following the Productivity Commission’s report, the LCT (which hits a monstrous 33 per cent above the threshold and which most people would think relates to brands like Mercedes, BMW, Rolls Royce etc) is set low enough (at $61,884) that the brand most heavily slugged by it is Toyota – Australia’s best-selling brand. The Productivity Commission recommended that the LCT be removed, but with more than $500 million from the tax expected to swell government coffers each year, it will be a hard pill for them to swallow. MTAQ and AADA will continue to argue strongly for its removal. We will see.

ORE THAN 300 of the great and the good of the Gold Coast assembled at the prestigious Sanctuary Cove Resort in September to witness the launch of the all-new Mercedes C-Class. Mercedes-Benz Gold Coast staged the launch event and the MTAQ member business certainly pulled out all the stops to make it a lavish and entertaining evening. Live music, free-flowing wine and even a duo of fire-twirling dancers were on hand to entertain the guests before the big reveal but, as always, the real star of the show was the car. And the all-new C-Class is a real star. A beautiful looking machine, the C-CLass is an important vehicle for Mercedes – sales of the preceding model, launched in 2007, total over 2.4million units. The new model will likely be just as popular and Mercedes says the C-Class sets new standards in the premium mid-range class. Thanks to an intelligent lightweight design concept boasting weight savings up to 100 kilograms, excellent aerodynamics and new, economical engines Mercedes says the C-Class establishes new benchmarks in its class. A host of new assistance systems offer safety of the highest standard, while a new suspension, optionally air-sprung, provides for exemplary ride and driving comfort as well as nimble and agile handling.

Photo's Murray Waite

MERCEDES LAUNCH EVENT A CLASS APART M

Guests check out the new Mercedes Benz C-Class

Robin Mainali, Dealer Principal for Mercedes Benz Gold Coast

“WE HAVE HIGH EXPECTATIONS. WITH ALL ITS FEATURES IT REALLY IS A COMPACT S-CLASS AND AS FOR VALUE FOR MONEY, IT IS THE BEST IT HAS EVER BEEN.”

The evening took an exotic turn with entertainment including fire-twirling dancers

“There are some amazing features both inside and out and I can guarantee you that you’ll be very excited when you get behind the wheel,” said Robin Mainali, Dealer Principal at Mercedes Benz Gold Coast. “The C-Class is integral to the brand and our most important model,” he added. “We have high expectations. With all its features it really is a compact S-Class and as for value for money, it is the best it has ever been.”

October 2014 Motor Trader | 13

News

N WHAT WAS thrilling news for all Australian motorsport fans, word came through at the end of September that the name Brabham is to return to the track as a world-class racing team. A Brabham team hasn't been seen at a motor racing circuit for more than 20 years but Sir Jack's youngest son David is the driving force behind a plan to change that. And it's a plan that is unique and innovative and could change the way motor racing business is done. The aim is to return to the track in the FIA World Endurance Championship next season with a three-year LMP2 programme. In year four, Brabham will return as a constructor by way of LMP1, with firm intentions of winning the only world title for sportscars and the greatest endurance race on earth, the Le Mans 24 Hours. Series such as the FIA Formula E Championship could also be a consideration while Brabham hopes to one-day return to Formula 1. It's a lofty goal but just as exciting as the news of the team's return is the manner in which it plans to do so for though the ultimate goal is winning motor races, the journey to get there promises to be just as exciting as the races themselves. Project Brabham, as the plan is known, has a Phase I which involves crowd-source funding - where members of the public can help the project along with donations ranging from STG1 ($1.85) to STG10,000 ($18,000). For those who join up there will be the opportunity to be more involved with motorsport than many of us would have thought possible. Central to that is Brabham-Digital; three immersive web applications comprising Brabham-Fan, BrabhamDriver and Brabham-Engineer. The portal will allow members to 14 | Motor Trader October 2014

Photo: Peugeot Sport

LEGENDARY NAME POISED TO RETURN TO THE TRACK I

David Brabham (right) after winning at Le Mans in 2009

â&#x20AC;&#x153;I LOOKED AT BEING

DIFFERENT, BEING OPEN AND TRANSPARENT AND OF US USING THE TEAM AS A VEHICLE TO NOT ONLY GIVE PEOPLE AN EVEN GREATER EXPERIENCE OF THE SPORT, BUT ALSO TO INSPIRE FANS, DRIVERS AND ENGINEERS.â&#x20AC;?

engage with Brabham on a new level. Members of Brabham-Fan will have unprecedented access to the team and be able to share in team processes, including driver selection and car testing while on race day have access to behind-the-scenes info, including telemetry and even race strategy. Brabham-Driver and BrabhamEngineer will offer online programs for those who want to know what it

takes, technically and professionally, to become the ultimate racing driver or to reach the pinnacle of motorsport enginnering. Anyone donating more than STG1 can get from three years and up to lifetime access to one or all three of the Brabham-Digital web applications through the various Project Brabham crowdfunding packages. For David Brabham, the man behind the project, it is an exciting time. " I have long dreamt of seeing the Brabham team back out on the track, winning at the highest level and continuing the legacy my father laid down when he first started the team in the Sixties," he said in a statement. But there is more to it than just winning. Sir Jack Brabham's legacy is as much about inspiration as it is about an incredibly successful racing career, and inspiration is another aim of Project Brabham. "I looked at being different, being open and transparent and of us using the team as a vehicle to not only give

Photo: LAT Photographic Jack Brabham racing during the 1966 season

people an even greater experience of the sport, but also to inspire fans, drivers and engineers," says David. "It's about engaging people. It's about getting the community going, about using the power of the crowd, the power of collective thinking. I really believe in that, and lots of people seem to want to be a part of it. "The response on Twitter, Facebook, Linkedin and via Email has been amazing and it gives us confidence

that we will reach our targets." One of those targets is, of course, putting a Brabham team car back on the racetrack. And when that first car does roll out onto the track, the tension will be high. "It will be huge," says David. "Very emotional." And when that happens, there may be one or two members of the family who could find themselves helping the team out from behind the wheel.

Matthew Brabham (son of David's eldest brother Geoff) and Sam Brabham (David's son) are both performing well at the early stages of their motor racing careers - Matthew in the Indy Lights in America and Sam in Formula Ford in the UK. "If I put my family hat on, I think 'That would be so cool!'," says David. "If I put my Team Principal hat on, I think, 'Is it going to work for us to do that or not?' I've always been good at separating my emotions in that way, and business is business. "They are great kids and great ambassadors for Brabham. They're talented, young, fit, healthy, they're quick - the whole package is there, so we would definitely look at that." Whoever the drivers may be, and no matter the classification in which the team competes, the fact a Brabham team may once again grace the world's racetracks is something we should all be proud of and look forward to. You can check out all the information on Project Brabham at www.brabham.co.uk.

NEW MTAQ AWARDS RECOGNISE YOUR EXCELLENCE THE PRESIDENT’S BALL is just nearly upon us and the MTAQ is pleased to announce that two new awards - the Innovation Award and the Community Award - will be presented this year. The awards have been created to recognise the business creativity of MTAQ members and their involvement within the communities they serve. From business methods that benefit the environment, improve productivity and customer service, to long-term relationships with local communities through charitable works such as sponsorships or fundraising, the

award judges - including MTAQ President David Fraser and the MTAQ Executive team - will want to look at any and all initiatives, projects and endeavours. Representatives of the winning businesses are required to attend the event and will, if required, be flown to Brisbane and provided a room at the exclusive Hilton Brisbane. But staying at the Hilton is not the only reward for the winning member. There will also be a trophy and an iPad recognising the winner’s achievement as well as exposure through MTAQ’s website, Facebook presence and,

of course, Motor Trader magazine. So get involved and nominate either your own business or the business of another MTAQ member who you think has excelled in either of these areas. Simply let us know, via email, and in 500 words or less, which business has been nominated, why they have been nominated and include either photographic or document evidence to support the nomination, and away we go. We want to hear from you so we can recognise the work, dedication, creativity and community spirit of MTAQ members.

INNOVATION AWARD

COMMUNITY AWARD

We often think of innovation in terms of technology, but innovation can come in many forms. From engaging employees with unique incentive programs to methodologies that streamline workflows and increase production; from waste management to quality control; from new product lines to changes to old ones; from customer service programs to unique building, planning and environmental projects. ‘Innovation’ can cover any improvement or adjustment to your business.

The MTAQ knows that many members are involved with their community beyond the boundary of their business - be it via charitable works, fundraising, volunteering or direct work in the community. The Community Award has been created to recognise a member business which has identified how important their role can be within the community they serve and which has responded with projects, programs and initiatives reflecting that importance.

WINNERS RECEIVE Return flights to Brisba ne A night at the Hilton Brisbane Free entry to The President’s Ball An iPad

The nomination process is open now and closes at Noon on Friday, October 10 The winners will be notified by Friday, October 17

Email your nomination to info@mtaq.com.au October 2014 Motor Trader | 15

MAKE: HOLDEN MODEL: 1972 HQ ONE-TONNE UTE ENGINE: MERLIN 540CI BIG BLOCK CHEV V8 OWNER: MARK MEESEN OWNER SINCE: 2002

HE SOUND IS epically thunderous - loud enough to make Motor Trader's bones shake and ears bleed. The ground trembles too and, somewhere, MT can imagine scientists frantically checking seismic sensors to see how bad the earthquake might be. Except it isn't an earthquake, and MT is not standing on a ruinous fault line in the Earth's crust. In fact, MT is standing outside a smart new shed, behind a very nice home, in the small town of Tarampa, about 80kms west of Brisbane. And the bone-rattling rumble is coming not from some catastrophic geological event but from a 1972 Holden HQ one-tonne ute being backed out of the aforementioned shed by its owner, Mark Meesen, from MTAQ member business, Tarampa Smash Repairs. The noise is being generated by a monstrous 540ci V8 packed into the front of the ute - a raging beast of an engine that, Mark says, generates 650hp at the flywheel. Of course, this is a 1972 Holden HQ one-tonne ute in name only: not a single HQ rolled out of the Holden factory with as ferocious a growl as this one. "It was a V8 automatic with power steering," says Mark of the car's original incarnation. "I paid $2500 for it and initially I had plans to do it up to sell it. "Then I got busy doing other stuff and it was only after we started building the engine, and realised it was too powerful for the car it was going to go into, that I decided to use it in the one-tonner."

16 | Motor Trader October 2014

And so began an epic project that would not only involve modifications to nearly every aspect of the ute, but also the spending of an awful lot of money and the working of more man hours at Tarampa Smash Repairs than Mark can possibly remember. "The cab is pretty much original," he says. "The body too, apart from the rear cab panel which was removed and replaced with a fabricated flat section making the exterior flush and also giving more interior space behind the seat. "Also, HQ GTS flutes were welded into the front guards and it did have an HZ front which I changed back to HQ. "The whole cab and chassis was sandblasted and the chassis was slightly modified and beefed up in a few spots, but it is reasonably original. "Everything else on the car has been modified. We did the interior, the dash, put in a full roll-cage, race seats and harnesses. We made the tray from 3mm plate steel and it tilts up on gas struts to allow access to the diff, fuel system, tank and battery that is underneath. "As for the engine - it has had too many modifications to list. It's a brand new aftermarket block and everything that went into it had to be bought to suit - so every part in the engine is brand new. Everything was done at our workshop apart from the gearbox, diff and the engine, which was built by Terry Archie, a friend of mine."

"All up, the car cost about $50,000 in parts and it was built over about 15 months." After completing the ute in 2009, there was clearly only one thing that Mark could do with it - sling it down the track and test it in the rubber-burning challenge of the quarter mile. "When I decided to build a car with a big engine it just came naturally to think that I'm going to have to race it," he says with a smile. Not surprisingly, the ute's performance is a standout. "I've raced it a few times," says Mark. "With normal tread tyres it ran an 11.8 (seconds) at 120mph (195kph). With the slicks it has now it should be able to do a 10.6 at around 130mph (209kph). I haven't raced it for a while but I'll probably take it out in the next couple of months." Over the next few years, the ute will likely be joined by other bone-jarring, big block behemoths: for Mark, cars are more than just a job. He says he wasn't sure what he wanted to do for a career when he was younger. However, with a dad and two brothers who were mad for cars it was only a matter of time before he was bitten by the car bug, and bitten hard, leading not only to a career in the industry but the steady accumulation of four-wheel classics. "I didn't know what to do when I left school," he says. "But I got a job as a spray painter and really took to it. I had a lot of pride in my work and I've been involved in the industry ever since.

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 letâ&#x20AC;&#x2122;s see if we can share your classic with other members. "And I started to buy cars," he adds with a grin. "A few years ago I had 19 but I'm down to eight now, including a '57 Chevy, a 2003 CV8 Monaro, a 1976 F350 and a 1970 Buick Riviera. I've always had a soft spot for Buicks." The Buick Riviera is, he says, likely to be his next big project, and if the ute is anything to go by it's going to be quite something when it's finished. As for the ute . . . well . . . after a period of dormancy, Mark is about to take it racing again to 'make some noise'. And when he does, those sensitive seismographs are likely to pick up more tremors in the Tarampa region. Scientists beware. October 2014 Motor Trader | 17

INNOVATION THE KEY TO AG SHOW SUCCESS MEMBERS ESSENTIALS Contents 18 21 24 26

Ag Show 2014 Training matters Member matters Member profiles

DIPLOCKS COLLISION REPAIR CENTRE MIKEâ&#x20AC;&#x2122;S TYRES - BRIDGESTONE SELECT SUNCITY SERVICE CENTRE

29 Industrial relations

18 | Motor Trader October 2014

ISITOR NUMBERS WERE steady at this year's Heritage Bank Agricultural Show in Toowoomba, with more than 13,500 members of the rural community attending the three-day event. And those visitors were entertained and informed by a range of top exhibitors, seminars, workshops and events. Networking functions, an innovation at this year's show, proved particularly popular. These included the Toowoomba and Surat Basin Enterprise (TSBE) Agribusiness lunch which focused on the continuing ties between Australia and Asia. The relationship, that was formalised at last year's show, has seen Ag Show exhibitors travel to Korea to display at that nation's Agrex Show, with Asian companies making the return trip to Ag Show this year. "Three seed companies from Korea attended this year," said Ag Show CEO Damon Phillips. "And we also had representatives from the Taiwan Agricultural Manufacturers and Machinery organisation." Another networking event, the Rural Press Club Breakfast function, focused on robotics in agriculture and some of the exciting work being done in that field, including discussions on how the use of drones and small robots could provide real savings to the farming community.

Other new events this year included the Campdraft competition. "The Campdraft was very well received," said Mr Phillips. "It was the first time we had held it at the Showgrounds in the main arena and we had 150 nominations. It brought a range of new patrons to the Show." Education also figured strongly at the event with hundreds of school children, ranging from prep school age to seniors able to learn about different aspects of the agricultural business. "Promoting agriculture to young people is very high on our agenda," said Mr Phillips. "Providing educational opportunities for young people is something I believe everyone in agriculture should be a part of."

TOOWOOMBA HONDA have been ever-present at the Ag Show, taking a spot at the event every year since its debut. And being at the show is a nobrainer, says company representative Lincoln Laws. "We've been here every year, absolutely," he says. "We try to bring out a full selection of bikes and power equipment so that we've got everything for people to come and look at." As for many businesses who present at the Ag Show, there is a post-event 'bump' for Toowoomba Honda as attendees make note of who, and what, they have seen. "We try and sell as much product as we can off the site, of course," says Lincoln. "But it is more about getting the name and the product out there. "We definitely see a flow-on effect after the Show. People come in and say they saw us at the Show and that they're ready to get something now. "So, probably for the next month we will see a pick up in sales." Those sales will likely be in the ATV sector - a side of the business that has grown in popularity in the rural community.

Lincoln Laws at the Toowoomba Honda booth

E S S E N T I A L S

TOOWOOMBA HONDA AN AG SHOW MAINSTAY

M E M B E R S

Ag Show

"Being an agricultural show, the ATVs are probably the biggest selling item," says Lincoln. Of the ATV models, he says there are two 'favourites' - the entry-level TRX250 and the more powerful TRX420 FPM. "The TRX250 is a popular bike because it's a great product at a good price. People who want to go for something with a little bit more power will often want to have four-wheel drive as well, so the next size up, the TRX420 FPM has that.

"The quad bikes are becoming the most widely used piece of machinery on farms, because it is used as a general runabout, and as a pulling, towing, carrying and spraying unit there are lots of different uses. As for the Ag Show, Lincoln believes exhibiting has been of great benefit to the business. "Absolutely," he says. "I believe so. It's always nice to get your name and your face out there and start generating a little more business which is what it is all about."

Workforce Development Helping business plan for the future One of the difficulties facing small businesses is ensuring that their employees have the necessary skills to meet the future demands of the business. As part of Auto Skills Australiaâ&#x20AC;&#x2122;s ongoing commitment to the automotive industry we have prepared a Workforce Capability Check List that can be used by you. It takes about 15 minutes to complete and is designed to help you analyse, review and develop appropriate strategies to assist your business to meet its performance and productivity targets through growing the skills of your workforce. For further information in accessing this free service contact: Greg Bayliss (03) 8610 2519 gbayliss@autoskillsaustralia.com.au John Scott on (03) 8610 2509 jscott@autoskillsaustralia.com.au

SETTING THE STANDARDS FOR AUTOMOTIVE SKILLS DEVELOPMENT This service is being provided with the assistance of funding provided by the Commonwealth Government through the Department of Industry.

October 2014 Motor Trader | 19

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

Bill Hanton from Black Truck Sales with some of the equipment the company was exhibiting

Ag Show

BLACK TRUCK BACK WITH WIDE PRODUCT RANGE BLACK TRUCK SALES has been a regular at the Ag Show over the years. The company, founded in 1968, sells a wide range of transport and agricultural equipment and brought a large array of its products to display. Aimed at all sections of the rural community, from small landholders to large agricultural concerns, Black Truck's display ranged from regular size Isuzu D-Max utes to light trucks, cattle trucks and massive JCB agricultural sprayers. "We support a wide range of leading products from the World's best manufacturers, including Isuzu, Iveco, Western Star Trucks, New Holland, AGCO Tractors and Harvestors and much more," says Black Truck representative Bill Hanton.

"The most interest we've had here is in the D-Max utes and wagons. We've had some interest in the cattle truck too, which you'd expect - there's always interest in that sort of equipment." With a long history shared with the rural community, the effects of the statewide drought have, says Bill, had an effect on the community. "It's been pretty dry out here in the rural areas and things are a little bit tight," he says. The Ag Show, he adds, offers Black

SHOW OFFERS GREAT EXPOSURE FOR NETA TIRE AND THE FEDERAL BRAND

Shaun Ebert and Malcolm Wright from Neta Tire were on hand to show the full range of Federal brand

NETA TIRE SERVICE and Sales made its first appearance at the Ag Show this year. The Queensland-based, familyowned, business has serviced the tyre industry for more than 40 years distributing tyre brands including 20 | Motor Trader October 2014

tyres

Federal Tyres, Silverstone and Hero as well as Gecko steel and alloy wheels, and their aim with their first appearance at the Ag Show was to bring greater recognition for the brand in the rural community. "It has been great," says Neta

Truck Sales an opportunity to show their continued support for the community. "It is about sales, but it's also about presence - to be seen and to be supportive of the rural sector. "Black Truck is owned by a ruralbased family and they understand how things are and want to help out where possible and do the right thing." Black Truck Sales have locations in Moree, Gundiwindi, Roma, Dalby and Toowoomba.

representative Shaun Ebert. "We do a lot of motorsport shows but this is our first agricultural show and we decided to give it a try and see how we go. "And the crowd has been great." The Neta team brought a large range of products to exhibit. "We are showing the full range of products - from passenger tyres to four-wheel drive and truck tyres," says Shaun. "And we are showing the full range of wheels too." The four-wheel drive range would likely be the market in the rural area, and Neta Tires has that tyre category wellcovered with the highly regarded Federal Tyres Couragia range of products. "We have a warehouse in Toowoomba so we hope to increase awareness of the product - Federal Tyres have been around a long time," says Shaun. "Our objective is to get the product out there." Neta has distribution sites in Gold Coast, Brisbane, Sunshine Coast, Rockhampton, Lismore and Toowoomba.

T HAS BEEN 12 months to remember for Albert Doyle-Smith the 2013 MIT Apprentice of the Year. Not only did he take out the MIT award, he also won the regional Worldskills Auto Body Repair title in 2013, finished his apprenticeship, and started his own business. With the MIT award a standout, it was, says Albert, a 'big year'. "Winning the Apprentice of the Year Award was unexpected," he says. "It was very exciting." The 20-year-old has powered on since winning the award and the $2000 prize that came with it. He started his own business, Automotive Crafstmen, in July 2014, using the prize money to buy tools and equipment, and is now working out of Cedar Vale, a community south west of Brisbane. And the move to start his own business is paying off - the standout former paint and panel apprentice is proving himself to be a budding entrepreneur, turning his talents to a variety of ideas. As a tradesman, he concentrates on vehicle restoration work and has several projects of various sizes on the go, including a 1961 Studebaker Hawk. "This is one of my first major jobs," says Albert, (also known as Adam). "It had already been partly restored to primer condition, but when we started to dig into it there were problems and we basically stripped it all back and started again. "It should be finished in a couple of weeks though, and be ready for paint." As well as restoration work, Albert says he has become the Australian and New Zealand distributor for a product called 'Metal Green'. "It's basically a rust convertor and metal preparation product," he says. And on top of that, he has plans to distribute restoration products including tools and machinery - and

Albert Doyle-Smith with the Studebaker Hawk he is currently helping to restore and, inset, with the model of his supercar design

to sell restoration tools that he intends to design himself. And he has plans to move beyond restoration work too. "Eventually I want to get into full custom builds," he says. "To design and make the full body of the car." Which leads us to talk about a long-cherished project of his - an as-yet-unnamed supercar. He's been tinkering with designs and plans and ideas for the car since he was a young teenager, but Albert has now created a quarter-size model of the car's exterior - a smooth, curvaceous design that wouldn't look out of place in the design studio's of Europe - and plans to make a full-size model. And it's not just the exterior he has all planned out - a sketch book as thick as the Yellow Pages, full of design ideas, is evidence of the thought he has put into the project. "I've designed every element of the car," he says with a smile. "Even down to the stitching on the seats." Winning the regional Worldskills

competition last year also meant Albert qualified to compete at the organisation's national competition in Perth in September. In that high-pressure atmosphere Albert performed well, scoring first in two of the five alloted tasks and scoring well in two more. However, a missing tool would cost him in the fifth task and he would miss out on a podium position. "I came fifth overall," he says. "I was missing a wire wheel and without it I wasn't able to clean off one of the seals and wasn't able to finish off the job. That was a killer, because I scored well in the other tasks." He is philosophical about his error, recognising the opportunities the Worldskills competition provides. "It was a great experience," he says. "And I definitely won't make that mistake again!" MT wishes Albert the best of luck - but with the ambition and creativity he has shown, we suspect he doesn't need it. October 2014 Motor Trader | 21

E S S E N T I A L S

APPRENTICE OF THE YEAR ON ROAD TO BRIGHT FUTURE I

M E M B E R S

Training matters

WO MIT SCHOOL-BASED apprentices enjoyed spectacular success at the Worldskills national competition held in Perth in September. Samuel Brown, from St Joseph's College in Toowoomba, and Dale Duffy, from St Edmund's College in Ipswich, took the silver and bronze medal places in the VETiS (Vocational Education and Training in Schools) Automotive Services competition. It was a fantastic result for the pair and a result of which MIT is very proud. The competition consisted of several challenges to be taken over three days - including tasks on braking systems, electrical, coolant systems, timing belt, vehicle inspection and tools and equipment. For 17-year-old Sam, taking out the silver was a great thrill. Currently working with Steerite Mechanical & Exhaust Centre in Toowoomba he was helped to prepare for the competition by work colleagues and his MIT trainer, David Twidale. "David helped me quite a bit," says Sam. "Once I got all the information about the competition, I spoke to David about it and we did a few

MIT TRAINER PROFILE

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

MIT APPRENTICES SHINE AT WORLDSKILLS T

DAVID TWIDALE

22 | Motor Trader October 2014

Samuel Brown won the Silver medal in the VETiS Worldskills Automotive Services competition

sessions together - going over some modules and some things I hadn't done yet. David was really helpful. "Work helped too. There were a few jobs that came in to the shop, like timing belts and coolant systems, and they allowed me to do them or to help out." As for the competition itself, Sam was amazed at the scale of the event and was a little nervous. "It was massive," he says. "When we went into the convention centre I was

astounded by how big it was. "And the first day was horrifying. We competed in shifts, and I didn't start until 11am the first day so I had time to sit around and think about it. I was stressing out! "However, the first task I did was braking systems and I had worked on brakes alot before I went over there, so I was really confident of that. When I started the task, I was fine." Not that there weren't a few anxious

What is your specialised area?

and skills as they advance through their apprenticeship.

Light vehicles, Mechanics, Tyre Fitters, Air conditioning.

What is your background in the automotive industry? Mainly dealership based, running workshops.

When did you become a trainer for MTA Institute of Technology? September 2012.

What geographical area do you service? West-Darling Downs to Chinchilla, EastLockyer Valley to Laidley, South-Granite Belt to the border & north to Crows Nest.

What is the most satisfying aspect of your role as a trainer for MTA Institute of Technology? Seeing students improve their knowledge

What do you believe is the most important aspect of training? Adjusting the delivery to suit individuals learning styles and ages.

Why should someone consider a career in the automotive industry? There are such a broad range of positions, for both male and females, that there is something for anyone that wants a challenging, rewarding career.

What is the best piece of advice you can give to an apprentice starting out in the industry? Finish Grade 12, with strong results in Maths, Graphics and IT to be in a position to grow with an industry that continues to change.

RECOMMEND IT TO ANYONE IN THE TRADE. IT'S A GREAT EXPERIENCE AND A GREAT LEARNING CURVE. THE THINGS YOU'LL LEARN ARE THINGS THAT YOU CAN'T LEARN ANYWHERE ELSE.”

moments after that, especially with the judges keeping a very close eye on the competitors as they carried out their tasks. "That was probably the most nervewracking thing," says Sam. "Having someone standing there watching the whole time and not knowing what they were thinking. They didn't give anything away!" The closing ceremony, which included the awards presentations, was another anxious time for competitors. "The nerves kicked back in again then," says Sam. "And when they said my name I was shocked. I wasn't expecting it but couldn't have been any happier. "My parents were there and they were both very emotional about it and very proud." For bronze medallist Dale Duffy, the competition was a great experience too, and just like Sam, he found the first day a nervy one. "I was very nervous on the first day," he says. "But I just put my head down,

Student of the Month, Aaron Wemyss

“AARON IS NOT JUST

THE WORTHY WINNER OF MIT'S STUDENT OF THE MONTH AWARD... HE HAS BEEN NOMINATED FOR THE PRESTIGIOUS CVIAQ APPRENTICE OF THE YEAR AWARD.” AARON WEMYSS is September's Student of the Month winner. The 21-year-old has just completed his 4th year as a Heavy Vehicle apprentice with Scania Australia and has, according to his MIT trainer Scott Lewis, been a 'model apprentice' with excellent skills across the board. His training book was, says Scott, always filled out perfectly, and Aaron excelled in his written and verbal assessments as well as in the workshop. Aaron performed so well and, along with his employer, was so committed to the apprenticeship that he finished several months early, completing his training and carrying out his last assessment in September. Aaron is not just the worthy winner of MIT's Student of the Month award, for his consistent excellence has brought him recognition elsewhere too. He has been nominated for the prestigious CVIAQ Apprentice of the Year award. The Commercial Vehicle Industry Association of Queensland represents manufacturers and suppliers of commercial vehicles and their components and their Apprentice of the Year award recognises an apprentice in any sector across the industry - including Heavy Vehicle, Auto Electrical and manufacturing. The CVIAQ awards will be presented on October 8 at The Melbourne Hotel, Brisbane. For taking out the MIT Student of the Month Award, Aaron wins a $50 voucher for Supacheap Auto

October 2014 Motor Trader | 23

E S S E N T I A L S

“I'D DEFINITELY

AARON WEMYSS WINS STUDENT OF THE MONTH AWARD FOR SEPTEMBER

M E M B E R S

Dale Duffy with his Worldskills Bronze medal

focused, and got to work." The 16-year-old, who works for Horsepower Solutions in Capalaba, east of Brisbane, was also amazed by the size of the event. "It was ridiculously massive," he says. "It was packed, especially on the Friday as school kids came through to have a look." For Dale, perhaps the most informative part of the competition was the feedback from the judges after the challenges. "After the tasks, the judges went through each stage and told us what faults they had put into the tasks. That was probably the best bit of the whole event - finding out what you'd missed, or what you'd found, on each task. It was good to find that out." Dale had help in practising for the event from his boss at Horsepower Solutions, Justin Simpson, and from his MIT trainer, James Dixon. James was not surprised by Dale's success. "He came into MIT a couple of times and we went over things, set up tasks and tried to simulate the competition," he says. "Dale put in a lot of hard work. I am extremely proud." At the closing ceremony of the event, the VETiS Automotive Services awards were the first to be presented. "When my name was called I was really excited," says Dale. "I called my Mum and Dad - Dad was watching it streaming live - and they were very proud. Then I called Justin and James, and then heaps of family members started to call!" The whole event was an experience neither Sam or Dale will forget. In fact, both are considering putting themselves back into the competition next year, this time in the senior category. "I'm thinking about going back to regionals and giving the open category a go," says Dale. "It's another step up. We'll see what happens." "I'll take a lot out of what I've learned preparing for this competition," adds Sam. "I'll use that knowledge to help me with work. And I'll go back next year for the next regional and for the open competition. "I'd definitely recommend taking part to anyone in the trade. It's a great experience and a great learning curve. The things you'll learn are things that you can't learn anywhere else."

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

NORMANTON’S SHOOTI N

ORMANTON IS A northern Queensland town of 1500 hardy souls tucked away just south of the eastern corner of the Gulf of Carpentaria. Located on the Norman River, the town is popular with tourists and recreational fishermen these days, but in its heyday during the 1890s it experienced a boom following the discovery of gold at nearby Croydon. It was a heady time for Normanton and even saw the building of a rail track between the town and Croydon - a 150km track that is still in service today. The days of the ‘gold rush’ are long gone now, of course - consigned to history. But there is still ‘gold’ to be found in Normanton . . . if you know where to look. Which brings us to Diane Reeves and The Top Service Station – the MTAQ member business she runs with husband Wayne. A ‘typical old garage’ is how Diane describes the Station, providing BP fuel and oils, tyres, batteries, accessories and, thanks to Wayne, a full range of mechanical services. But actually it is far from a typical garage. For starters, it was built, by hand, by Diane’s father Jack who, now 84, still works there from time to time. And it has also become something of a meeting place for the town’s old-timers.

“THE DAYS OF THE

‘GOLD RUSH’ ARE LONG GONE NOW, OF COURSE CONSIGNED TO HISTORY. BUT THERE IS STILL GOLD TO BE FOUND IN NORMANTON . . . IF YOU KNOW WHERE TO LOOK.” “Dad bought and pulled down the town’s old School of Arts in the 60s and used the timber from there to build this place,” says Diane. “And everyone comes here. At about 10am every day there’s a group of old fellas that come and have a yarn. “They sit out the front, have a

Diane with her father, Jack O'Neill

24 | Motor Trader October 2014

gossip and catch up with everyone. I call them the CMA, the ‘Cranky Mens’ Association’!” Opened in 1965 the garage is a true family concern. Wayne joined the business in 1978, Diane in 1997 and their children, Dean and Cherie, have done stints helping out - though both have moved on to other endeavours. The shop keeps Diane and Wayne busy – meeting the needs of the townsfolk and the tourists that come flocking through town can be tough, and means trying to cater for all manner of issues. “We try to carry enough stock for any eventuality but you can’t carry everything,” says Diane. “There’s a fair bit of stock here though. The only thing we don’t have is room!” Though Diane and Wayne are always busy, there are occasions when they can escape for some recreational time of their own – time when they enjoy a favourite pastime, clay target shooting. It’s a sport they have enjoyed for years and the entrepreneurial couple even created a target range on the edge of town and started a club which now numbers more than 90 people. And it is clay target shooting that offers us the connection between Diane and ‘gold’. For Diane is the proud owner of quite a unique piece of it. But this particular gold was not found in the dusty ground of northern Queensland, but 15,000km away in north-west England.

E S S E N T I A L S

Diane, you see, is a Commonwealth Games Gold Medal winner – a title she won as a member of the Women’s Trap Pair’s team at the 2002 Manchester Games. Introduced to the sport by Wayne, who was already an accomplished shooter, Diane found herself to be naturally gifted and was soon competing at all levels of the sport. “I went to state and national titles, and elimination shoots all over the country,” she says. “Until 1998 I hadn’t been overseas. Then my first experience was going to Cairo for a World Cup competition. That was a bit of a shock!” After Cairo, Diane competed at World Cups in Brunei, Italy, Spain, New Zealand, Germany, England, Korea, China and Finland before heading to Manchester for the Commonwealth Games. In the final, Diane and her teammate were up against an England duo and in a turn of events that you’d be pushed to find outside of a Hollywood movie, it came down to Diane’s final shot to decide the title. “It was nerve-wracking,” she says. “In Pairs, you have to shoot 50 targets each over two rounds. I hit 22 in my first round and my teammate had done well in her first round, but I was the last shooter in the second round and I wasn’t sure what the English girl had done.

M E M B E R S

ING STAR Diane, left, secures 2nd place at the Brunei World Cup

Diane in her Australian uniform

Diane on the front page of the Gulf Chronicle

“IT WAS GREAT RECEIVING THE MEDAL BUT THE BIGGEST THRILL WAS COMING BACK TO NORMANTON WHERE IT SEEMED LIKE EVERYONE HAD COME OUT. IT WAS A REAL HOMECOMING.”

The Top Service Station, Normanton

Diane, right, secures 3rd place at the Korea World Cup

“All I could think was that I had to hit the last target and when I did, the English coach came over to tell me I’d won. “I didn’t believe him until my coach came over and said ‘You’ve won the gold medal, you’ve got it! It was all down to your last target!'” Not surprisingly, the news was met with elation in Normanton and on Diane’s triumphant return, the town turned out in force to greet her. The local newspaper, The Gulf Chronicle, devoted a front page to her victory. “I can’t describe how I felt at the time,” says Diane. “It was great receiving the medal but the biggest thrill was coming back to Normanton where it seemed like everyone had come out. It was a real homecoming.” Though Diane competes mostly at club level now, that sparkling medal is a glorious reminder of a victory and a career achievement that most of us can only dream of. “My medal is kept at home,” she says with a chuckle. “But it gets brought out fairly regularly.” And so it should. The old boys at the CMA must still be talking about it. October 2014 Motor Trader | 25

Diplocks Collision Repair Centre Location: 8 Hemptenstall Street, North Rockhampton

M E M B E R S

E S S E N T I A L S

Member profiles

Type of business: Smash Repairs Number of employees: 23 Trading since: 1972 MTAQ member since: 1997

Diplocks Collision Repair Centre

Mikeâ&#x20AC;&#x2122;s Tyres Bridgestone Select Location: Cnr Bayswater and Dalrymple Road, Garbutt, Townsville

Type of business: Tyre and Auto

Retail Business

Number of employees: 9 Trading since: June 2010 MTAQ member since: June 2010

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

What is the best thing about working in your industry?

From a visit by the local executive.

The people you meet.

How has being an MTAQ member benefited your business?

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

Knowledge on IR matters. Always willing to help.

Never lose sight of your loyal customer base.

What has been your proudest business achievement to date?

What would you say to someone thinking about joining MTAQ?

Growing the business each year by more than 10 per cent.

Easy. Just do it. Mad if you donâ&#x20AC;&#x2122;t!

Suncity Service Centre Location: 190 Scott Street, Bungalow, Cairns

Type of business: Motor Mechanical Number of employees: 4

Suncity Service Centre

26 | Motor Trader October 2014

What would you say to someone thinking about joining MTAQ?

Our business has benefited from the constant information that MTAQ provides. Being able to ring Ted/ Michelle about payroll issues has been invaluable.

The satisfaction that you get every day when a customer picks their car up and are delighted when they see how their vehicle has been restored to pre-accident condition.

The information that MTAQ provides is invaluable, the support is amazing.

What has been your proudest business achievement to date?

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

Moving to our new larger premises in 2006. Diplocks is now a thirdgeneration business.

I have always believed that being totally honest in all aspects of business will bring success. Respect is a two-way street, both with staff and everyone you deal with in business everyday.

Mikeâ&#x20AC;&#x2122;s Tyres - Bridgestone Select

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

What is the best thing about working in your industry?

What would you say to someone thinking about joining MTAQ?

Previous owners of our business were members.

Being able to do something different every day with new and exciting challenges. Performance work is definitely a highlight at Suncity.

MTAQ is a great association to join as they are a reliable source of support with everything to do with the motor trade.

How has being an MTAQ member benefited your business? Providing useful information and facts about the industry. Providing professional business related advice.

What has been your proudest business achievement to date?

What is the best piece of business advice you have ever given or been given? Business all starts with a vision, once you have that the rest will follow.

Saving up the funds to purchase Suncity Service Centre.

October 2014 Motor Trader | 27

E S S E N T I A L S

What is the best thing about working in your industry?

M E M B E R S

How has being an MTAQ member benefited your business?

E S S E N T I A L S

MEMBERS’ CLASSICS

CLICK ON THE IMAGE

TO VIEW GALLERY

GALLERIES

MEMBERS CLASSIC Owner: John Smith

M E M B E R S

SCROLL DOWN FOR MORE

MEMBERS CLASSIC Owner: John Smith

GALLERIES OF MORE CLASSIC

MOTORS

ALL NEW MTAQ WEBSITE SET TO LAUNCH T ECHNOLOGY NEVER RESTS - it is always improving, becoming more efficient and more user-friendly. And that is exactly what MTAQ will become as it launches its all-new website at the the end of October. It will, we feel, be a revelation to you, our members. Easier to navigate with a fresh and clean design, the website will still include many of the important features we currently have - including information on member benefits, Green Stamp Accreditation, industry alliances and corporate partnerships as well as member-only features. MTA Institute of Technology's online presence will also be updated and will include all the information on courses and training opportunities that are available as well as news updates and information on how to get started in apprenticeships and traineeships. The publications department of MTAQ gets a new section to itself too. Motor Trader magazine will have its own site, complete with news feeds, feature stories, interviews and other automotive articles.

28 | Motor Trader October 2014

The popular 'Members Classic' feature from the magazine will find a home on the website and there will be interviews with the vehicle owners as well as extensive picture galleries of the cars themselves. Australian Tyre Dealer, the second of the magazines published by MTAQ, will get its own home on the site too. For those with an interest in the tyre industry, it will become a vital source of information on product releases and other industry news, and will also carry features on issues affecting the trade, as well as interviews with industry figures. As well as all that, both Motor Trader and Australian Tyre Dealer can offer banner and block advertising opportunities on their respective sites. That means there is whole new opportunity to advertise and reach both Association members and the wider general public. We hope you will like what you see when the website launches. In the meantime, if you have any questions, give us a call on 07 3237 8777 or email info@mtaq.com.au

APG PARTNER IN PARTS . CERTIFICATION PROGRAM MEMBER’S CLASSIC

1967 FORD MUSTANG Owner: Jack Beedham GT

ALL AMERICAN MUS

CLE

For many people on Brisbane’s north in the town of Redcliffe side, and particula rly , there is one wasn’t a bit of rust with the automot in the car, or any ive business - Jack name synonymous damage. “I did repaint it to no surprise, for Beedham. And that the colour I like the gold and, though instead of the original the industry, and Beedham family have been involved is I didn’t touch the in in or anything else motor or transmis his grandparents the life of the town, for generati for quite a few years, sion ons – owned the Redcliffe that step further I then decided to the war years and Pier Theatre during and upgrade the go his mechanicals. “The original engine ran the first Holden father owned a service station was a 289 with and taxi in the town. loader and 8¾-inch a four-speed topJack has been running diff. his business, “I wanted somethin Exhaust and Brake g special Centre, for 33 years Jack Beedham’s with a little bit more horsepower - a bit in cars extends and his interest more grunt and well drivability - so I replaced the engine with Jack’s son Bobbie, beyond his work life. Accordin a 408 Windsor, the g to manager of the transmission from loader to a C4 manual become a way of family’s business a top, it has life. “We are a car with a 9-inch Truetrac. shift automatic, and replaced been,” he says. the diff “That’s our life quite family, always have “We changed the honestly.” And that lifetime wheels, tyres and of passion reveals got a 3-inch dual success of the business itself not just in exhaust on it – and the exhaust – it’s for it which are HPC we made extractor collecting and driving but in the cars the family enjoythe Mechanically, the (high performance coating) coated. s include a ’62 Chevy - cars that, in Jack’s collectio whole n, Though the Mustang drive-train has been chained. and a Falcon Sprint 2-door SS, a Chrysler Woody Wagon ” is not his everyday Jack does take Ranchero, an early and in Bobbie’s collection, a Ford vehicle, it regularly to track Fairlane and an events like the Cooly days, XF Falcon. Amongst the cars Rocks On festival car shows and Jack owns, a special Coolang held recently at for this remarka atta in southeast Queensla place is held ble massive event at nd (see page 30) car Jack found in looking 1967 Mustang GT Fastback which – the USA and is a ,a the crowds, standing the Mustang proved popular a replacement for loved vehicle he with out even among a much- classic owned nearly four the more than 1000 cars that lined the decades ago. “I found the car in Las Vegas while beachfront road. “I do “I had one back keep it under on holiday,” he says. in 1976 when the “So it’s not my daily cover, it’s that sort of car,” says family sold it and moved Jack. driver but we’re on. I always regretted was young, but I either - we do actually not ‘trailer queens’ Which explains drive them to shows why, when he stumbledgetting rid of it.” And so he should, same model 30 and track days!” across the exact years later, and into the car is a beast for the result of all the hard work with his family all up, he had to buy put grown it and ship back as it looks, the thunderof a vehicle that sounds as ferocious home. Though it was in of the engine just excellent condition And out on the roads, awesome. of a personal perfectio , Jack’s pursuit and at shows like On, it is little wonder changes to the car. n meant he did make substant Cooly Rocks the ial Mustang “The Mustang was a turns heads. “Everyone loves when I bought it. very original There aren’t that looks at it, the kids it when I drive it,” says Jack. “Everyon many around and car wave e there “And it is my favourite – it is a very popular car. too. It is just what I wanted.”

IN A MOVE set to vastly increase the availability of high quality aftermarket parts certification in Australia, Auto Parts Group has partnered with CAPA (Certified Automotive Parts Association) a non-profit organization that certifies the quality of automotive parts used for collision repairs. CAPA is heavily involved in the area of vehicle repair and their Validator, Intertek, are providers of quality assurance, testing and certification services in the areas of medical, IT, chemical and aerospace in over 100 countries globally, including Australia. In addition, Intertek provides services to global automotive OEM’s, suppliers and distributors. For close to a decade, Auto Parts Group has promoted their certified parts brand, Q Parts, to the crash repair industry. Q Parts are aftermarket parts that have been certified by either CAPA, Thatcham TÜVRheinland or NSF. “We are very proud and excited to partner CAPA into the Australian market,” said Stephen Campbell, Managing Director of Auto Parts Group. “This is a huge leap forward in the certified parts space which will provide benefit to insurers and body shops as regards parts quality, repair efficiency and cost savings. “APG, CAPA and CAPA’s Validator, Intertek, have had a long association. CAPA’s certification, tailored for the Australian marketplace, will include local VTF (Vehicle Test Fits) to ensure CAPA certified parts have OEM equivalence of fit, form and function for our domestic car park.” AGP says the ultimate goal is to ensure the aftermarket part characteristics meet or exceed those of the comparable OEM part. This new partnership between Auto Parts Group and CAPA will, the company says, position Q Parts as the only Australian certification program that is truly independent.

M E M B E R S

Industrial relations The Federal government has decided to slow the progress of the projected increases in the Superannuation Guarantee percentages. The current rate of 9.5% will remain unchanged until 1st July 2021 – at which time it will move to 10% and in half-a-percentage point movements each 1st July onward until it reaches 12% in 2025.

TED KOWALSKI INDUSTRIAL RELATIONS MANAGER

FOUR YEAR REVIEW OF MODERN AWARDS The Fair Work Commission is currently conducting a four year review of the operation of Modern Awards. The essential purpose of the review is to determine if the modern award system is working as it was intended and, if not, what changes should be made. Factors such as; whether the provisions of the awards are easily comprehensible and internally consistent; and whether the parties to the awards ie., employers and unions, have identified issues which need attention. Submissions have been accepted from all interested parties and the Fair Work Commission, over the next few months, will work through all the issue identified by way of hearings and written submissions from interested parties.

APPRENTICE TRADE SUPPORT LOANS The Federal government has introduced a new scheme called “Trade Support Loans” which allows eligible apprentices to apply for up to $20,000 to assist them in completing their apprenticeship. The loan money,

“THE FEDERAL

GOVERNMENT HAS INTRODUCED A NEW SCHEME CALLED "TRADE SUPPORT LOANS".”

if approved, can be spent by the apprentice in any way he/she deems appropriate. It could, for instance be applied to the purchase of a vehicle to facilitate travel to and from work or simply to cover living expenses like rent, phone bills etc. The loan payments are made in monthly instalments and are split into yearly rates as follows;• First Year - $8000 • Second Year - $6,000 • Third Year - $4000 • Fourth Year $2000. The government has established a “priority list” of apprenticeships which can access the scheme and it includes Auto Electricians, Diesel Motor Mechanic, Fitter, Motor Mechanic, Motorcycle Mechanic, Panelbeater, Small Engine Mechanic, Vehicle Body Builder, Vehicle Painter, Vehicle Trimmer, and Welder. Further information is available from any Australian Apprenticeship Centre; by calling the Australian Apprenticeships referral line on 13 38 73; or by visiting the Australian Apprenticeships web site at australianapprenticeships.gov.au

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Division

Currumbin Paint and Smash Repairs Michelle Neumann

4 Wheeler Crescent, CURRUMBIN QLD 42231

Michelle@cpsr.com.au

NACA

Victory Brisbane and Indian Brisbane Peter Alexander and Peter Harvey

632 Wickham Street, FORTITUDE VALLEY QLD 4006

Brisbane.sales@victorymotorcycles.com

QMID

October 2014 Motor Trader | 29

E S S E N T I A L S

SUPERANNUATION GUARANTEE LEVY TO REMAIN AT 9.5% UNTIL 1ST JULY 2021.

Investment matters

MARKET WRAP

URING THE MONTH there was significant discussion regarding the improving US economy and the potential for interest rate rises, but this gave way to further geopolitical concerns and softer European data. Domestically, the month was dominated by the reporting season and we were pleased with the progress of our companies. However, performance was negatively impacted on a relative basis by the strong performance of companies we do not hold, in particular the defensive yield-paying companies. It was a difficult six months for a number of sectors. Offshore markets were impacted by weather and domestic companies were impacted by the budget, which caused a drop in consumer confidence. This provides a difficult platform from which to forecast. While analysts would be reluctant to project the difficult trends to continue, they are also reluctant to forecast a large bounce. In a number of our holdings we see analysts’ forecasts as conservative, and so have been adding to these positions. Companies with buy-backs (even if small) and special dividends were rewarded. The underlying backdrop of low yields makes companies returning capital to shareholders seem appealing in the near term, however we are concerned that this strategy is somewhat short-sighted. High-quality businesses should be able to reinvest capital to generate even greater future returns for shareholders, and we see the trend of returning capital as somewhat counterintuitive given the current low-cost of debt and equity. We are concerned that while the market continues to reward near-term yield over longer term growth, most

30 | Motor Trader October 2014

“WE ARE ACTIVELY SEEKING QUALITY COMPANIES WHERE BOARDS ARE PREPARED TO REINVEST IN THE BUSINESS TO GENERATE FUTURE RETURNS RATHER THAN TAKE THE SHORT TERM ‘SUGAR HIT’ OF RETURNING CAPITAL TO INVESTORS.” Boards will be reluctant to invest in future opportunities, preferring the short-term impact of returning capital. Consequently, we are actively seeking quality companies where Boards are prepared to reinvest in the business to generate future returns rather than take the short term ‘sugar hit’ of returning capital to investors. With top-line revenue growth remaining scarce, companies with strong business models that demonstrated sustainable growth are being justifiably rewarded. A generally sluggish economic backdrop means companies that can generate maintainable growth are likely to continue to be rewarded by the market. We continue to investigate opportunities in this area. Domestic housing activity continued to expand and housing starts are at a much healthier level of activity after several years of poor growth following the GFC. We have a solid exposure to this area and expect underlying demographics and historical undersupply to drive returns for quality companies exposed to this sector.

Mining activity continued to slide with the capex peak on existing projects having passed and new projects still struggling to get approval. The focus has turned to non-residential construction activity to fill the void but, despite much talk at both federal and state government levels, the long lead times and political nature of these projects means real activity is still some way off. We remain optimistic that the activity levels will eventually pick up in the area and see opportunities for companies in this sector. While we do not place too much weight on the number of companies beating revised earnings, reporting season revealed that 36% of companies exceeded market expectations, 41% met market expectations and 23% failed to meet market expectations. Of more significance is the change to FY15 expectations, which is a small downgrade of around 0.8%. Overall 28% of companies were upgraded, and 27% downgraded. 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.

MT's Christmas gift guide

T’S OCTOBER ALREADY! The year is flying by and before you know it we will all be staring down the barrel of another Christmas. And if you are anything like the staff of Motor Trader, the act of charging around the local shopping mall in a blind panic on December 23 trying desperately

to find a suitable gift is as regular an annual event as Christmas Day itself. With that in mind, we’ll be running some Christmas gift ideas past you for the next couple of months. They’re fun, some are practical, but they’re all pretty cool. So relax, and get those presents sorted out early!

CLICK CAR MOUSE WITH WIRELESS TECHNOLOGY, and headlights and rear lights that can be turned on and off, we reckon the car-shaped computer mouse is pretty much perfect for car tragics everywhere. And there are plenty of ‘cars’ to choose from including a Mini Cooper S, the Aston Martin DBS and the Range Rover Evoque, amongst others. For more info (including system specifications) go to www.optocoonline.com $99.95 from www.optocoonline.com

STEEL MODEL T FORD IF YOU KNOW someone who is a Ford nut, and who likes to do a bit of tinkering in their spare time, then this great little item might be just the thing. This Ford Model T is just one of a range of models available from Metal Earth that start life as 11sq/cm steel sheets. Using the instructions to pop out the pieces, bend the tabs, and connect them to the attachment points, they finish as amazing 3D models like this one. $22.99 from www.mindgamesbrisbane.com

LAMBRETTA WATCHES ANOTHER CLASSIC NAME – another awesome product. The Lambretta scooter has been an Italian icon since the 1950s and there can hardly be a cooler image than that of the young man shooting around the streets of Rome, no helmet, shades on, with a beautiful woman perched on the saddle behind him. Okay, we’re not in Rome, but the Lambretta watches are still mighty cool with their classic retro designs. Both mens (Cesare collection) and ladies (Cielo collection) watches are available and are made from genuine leather and stainless steel and come with a 2 year warranty. Cesare Collection (Men) RRP: $139.50 for silver and &169.50 for gold Cielo Collection (Ladies) RRP: $99.50 to $199.50 Check them out at www.heartandgrace.com.au Phone 0422 863 906 for stockists.

VW MESSENGER BAGS KNOW A VOLKSWAGEN fan? Then perhaps we can point you in the direction of these flash little shoulder bags. Based on the design of the front of the classic VW T1 Bus, the landscape bags feature adjustable straps and plenty of practical compartments and pockets to hide your tie-dye shirts, shorts and thongs. Your surfboard, however, won’t fit. Landscape bags are 25cmx35cm. Also available are portrait format bags. RRP: $79.95 Go to www.jasnor.com.au for more information and for stockists. October 2014 Motor Trader | 31

Industry insight

GET READY FOR GROWTH AND EXIT PLANNING G ROWTH AND EXIT might seem like unlikely bedfellows, but if you want to get maximum value for your business you need to start planning well in advance. A recent survey of family businesses in Australia has revealed that the number of owners aged between 60-69 has increased from 21% to 37% in the past 3 years. Of the total family business owners, 64% would seriously consider selling if approached and 20% would sell because they wish to retire. These numbers are significant, but only 34% of owners have an adequately funded retirement program. The survey results indicate that the value of a business is critical to a number of business owners who would like to use the sales proceeds to fund their retirement. However the number of owners who believe that their businesses are ‘sale-ready’ has fallen from 56% in 2010 to 44% in 2013. There are a number of steps which a business owner can take to significantly improve the value of a business. These steps apply whether the owner plans to sell within a few years or carry on for many years. Prepare a business plan for the next 3 years which documents the key aspects of your business and acts as a reference tool for you to develop and maintain the business. The plan will include: • The specific markets, products and services that you are targeting – what are the technical, environmental and industrial requirements? • If the existing markets have diminished, what new market opportunities are there? Is there new technology which you can service or utilise? With the accumulated experience and expertise of you and your staff, can you come up with innovative ideas which may be commercially viable? • Research on your market opportunities (e.g. how valuable are

32 | Motor Trader October 2014

they?) and how your competitors perform in those markets. • Your plans to market your business. • Resources required by the business, such as premises, equipment, materials and staffing (including levels of expertise). • A finance plan to realistically cover anticipated sales, costs, cash flow and loan requirements – a lender is unlikely to fund you without seeing a business plan. A business has limited value if the person who sells it will walk out of the door with all the knowledge in his or her head. A new owner will pay more if the business has good operating systems which apply, with or without the owner being there. This is called systemisation of the business and ways in which this can be achieved are: • Document the key workflows in the business and who is responsible for the critical actions. • Train staff to accept accountability for these roles (and document in their position descriptions). • In this process, ensure that best work practices are carried out consistently. • Empower key staff to make “business as usual” decisions without referral to the owner. • Employ management system software which integrate activities from customer lead generation, to sales quotes, to sales order, to work scheduling and materials ordering, to material receipts and production/ service staff time recording, to sales invoicing and accounting. A system which provides this will reduce duplication of work and will enable all staff to have access to information, whatever stage the job has reached. Advantages of a good management system are: • Work planning is more orderly, which increases customer satisfaction and improves the likelihood of work being completed on time.

• Significantly reduces the amount of crisis management required. • The clarity of job roles and responsibilities increases job satisfaction for staff and is likely to have them more committed into contributing to the improvement of the business with new ideas. • Frees up the owner’s time to work on strategies for business improvement rather than the day-to-day issues. A prospective buyer of a business will look at the certainty of current revenue and profits being maintained. The value of the business will be enhanced by: • A good spread of revenue across a number of customers. If 70% of revenue comes from 2 customers, built on a good relationship with the owner over many years, a buyer may significantly discount its value. • A spread of revenue across a number of market sectors, so that a downturn in one sector can be offset by a gain in another sector. • A good reputation in its industry. • The staff culture within the business. If there is a good mix of experience and expertise, coupled with a desire to move and innovate with changes in technology and markets, this will give confidence about the longevity and success of the business. The suggestions made above are not a quick fix and can take years to implement. However they are a very sound investment – they can be valuable in ongoing profitability and when the time comes to sell the business; they also make work life more enjoyable and fulfilling, both for the owner and for staff. To find out more about growing your business effectively, download our Whitepaper ‘Vital Questions for a Growing Business’ at http://info. cfooncall.com.au/questions-growingbusiness-whitepaper

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