Motor Trader magazine, March 2017

MAR 2017

A STROLL THROUGH AUTOMOTIVE HISTORY AT BRITAIN’S NATIONAL MOTOR MUSEUM

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

MEMBERS CLASSIC: 1976 HONDA CB750 FOUR

The benchmark of industry standards.

NEW GOV LIMITED PERNMENT FUN LACES AP DING PLY NOW Right training.

Right place.

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GET YOUR SKILLS RECOGNISED

Australian citizen, permanent resident or a Refugee and Humanitarian Visa holder living in Queensland. You must also have six or more (current or recent) years of experience within the industry, providing documentation as proof. Finally, learners must be over the age of 21, have no former trade qualifications and express a commitment to gaining the qualification in its entirety.

Although offered at MTA THE MTA INSTITUTE is now Institute as a government-funded MTA Institute offers a Trade Skills Assessment and Gap Training offering Trade Recognition Initiative, there is an additional Program for the following qualifications for skilled and experienced mandatory fee applicable to the individuals working in the • AUR30312 – Certificate III in Automotive Electrical Technology gap training components. This • AUR30412 – Certificate III inAgricultural Mechanical Technology automotive industry who will differ from person to person • AUR30612 – Certificate III in Light Vehicle Mechanical Technology wish to gain a formal trade based on competency, and the • AUR30812 – Certificate III in Motorcycle Mechanical Technology qualification. fee is $1.60 per nominal hour for • AUR31114 – Certificate III in Heavy Commercial Vehicle Mechanical Technology each unit of gap training needed • AUR31212 – Certificate III in Mobile Plant Technology What is Trade Recognition? to complete the assessment.

• AUR32112 – Certificate III in Automotive Body Repair Technology Funded by the State With limited positions • AUR32412 – Certificate III in Automotive Refinishing Technology Government, Trade Recognition available, all applications for this is a fantastic opportunity for highly sought-after opportunity This opportunity means the experienced automotive trade workers will be considered and approved in order government-funded Trade Recognition to gain a formal trade qualification in just of date received. undertaken at MTA Institute can be a matter of months.

For further information or to apply completed and signed off in potentially The duration of the course is now, contact training@mtai.edu.au three months or less for the majority of customised to the individuals’ knowledge participants. and skills. However, the expectations are This is opposed to the three to four that all undertaking Trade Recognition years needed to gain a trade qualification can achieve 60 per cent of a qualification through an apprenticeship. or more through the Recognition of Prior To be eligible, learners must be an Learning (RPL) assessment.

RTO No: 31529

Working in the industry but have no formal qualifications?

MTA Institute

Search for MTA Queensland

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Address Freeway Office Park, Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 Postal PO Box 4530, Eight Mile Plains, Qld 4113 Tel (07) 3722 3000 Toll Free 1800 884 137 Email training@mtai.edu.au Website mtai.edu.au

Contents Official Publication of the Motor Trades Association of Queensland

Search for MTA 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

MTA Queensland and MTA Institute actively promotes our four social media platforms and encourages all our members and MTA Institute clients to connect with us via these channels.

Simply search “MTA Queensland.”

EDITOR Jonathan Nash

Each social media platform contains different information and this is a terrific way to stay on top of industry news, upcoming events, MTA Institute courses and the latest benefits for Association members.

We see our social media platforms as an additional important communication method, alongside Motor Trader and Member Bulletin emails.

ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Paul Murray POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Barry Browne 03 9807 9154 Email: barry@barrybrownemedia.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

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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.

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MTA QUEENSLAND ABN: 74 028 933 848

02 From the editor

CORPORATE PARTNERS

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04 From the desk of the CEO 05 Policy/Viewpoint

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08 MTA Q&A

DAVID STILING FROM STYLING AUTOMOTIVE

10 MEMBERS ESSENTIALS 19 Training GM's Professional Circle perspective 20 Professional Circle training 24 Member matters 27 Member profiles 28 Industrial relations

Feature 10 MOTORING MAGIC: A STROLL THROUGH AUTOMOTIVE HISTORY AT BRITAIN’S NATIONAL MOTOR MUSEUM

30 Concept Corner NISSAN VMOTION 2.0

16 Members Classic HONDA'S ORIGINAL SUPERBIKE: 1976 HONDA CB750 FOUR

32 Industry insight

KNOWING THE RIGHT NUMBERS – THE DIFFERENCE BETWEEN SUCCESS AND FAILURE March 2017 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

H

ELLO AND WELCOME to the March 2017 edition of Motor Trader.

This month, the MTA Queensland hosted the Carmageddon Symposium.

A look at the amazing technological changes that either are, or soon will be, affecting our industry, the symposium brought together experts from industry, academia and government to deliberate where these changes might take us and how we can not only adapt to them but take advantage of the opportunites that such a technological revolution offers.

Plenty of issues - from 3D printing

to artificial intelligence, from safety to future training - were discussed and we will have a full wrap-up of the symposium in April's Motor Trader.

While we must always keep an eye on the trends and ideas that will affect our future, it is also worth remembering the industry's remarkable past and, from time to time, look back to see how far we have come.

So, in our main feature this month we do just that and visit Britain's National Motor Museum.

A remarkable place, the museum has hundreds of cars and bikes on display - vehicles that reach back to motorised transport's earliest days.

It is a truly astounding collection of vehicles and a place in which you can lose yourself for many an hour . . . as Motor Trader certainly did!

In our MTA Q&A feature this month we talk to David Stiling from Styling Automotive in Brisbane.

The 37-year-old established his business - specialising in full paint, repair and restoration services of classic vehicles - just three years ago and business is booming with what started as a one-man operation now employing a team of six highlyskilled tradesmen.

In our Member's Classic feature,

we chat with Andrew Porta from Cairns Honda about his CB750 Four.

The CB750 is frequently named as one of the best bikes ever made and also recognised as one of the world's first 'superbikes'. Andrew has two CB750s and the one we focus on this month has been beautifully modified into a cafe racer-style machine. Take a look on pages 16 and 17.

In other news, we talk to Allan and Helena Willmot from Willmot Smash Repairs in Cairns which has just celebrated 40 years in business; Sharine Milne from RHD Classic Supplies and Services, which won the 2016 MTA Queensland Community Award; and we report on the recent Australian Motor Body Repairers Association (AMBRA) meeting held in February at MTA Queensland's offices.

I hope you enjoy this edition of Motor Trader and remember, if you have a story worth telling, want to appear in Member Profiles, or have a classic car, bike or truck you would like to see featured, then please contact me.

Cheers, Jonathan Nash jonathann@mtaq.com.au

ADVERTISE ON OUR JOBS BOARD MTA Queensland has launched a FREE Jobs Board and employment section on our website, which contains valuable resources for employers and enables you to advertise positions available in the automotive industry.

See www.mtaq.com.au/Membership/Jobs-Board for more information.

2 | Motor Trader March 2017

Commonwealth Bank helps MTA Queensland members get Vehicle and Equipment Finance fast and simple.

Commonwealth Bank understands that putting the latest equipment to work in your business increases productivity and helps you grow in an increasingly challenging and competitive market.

Fast and Simple Commonwealth Bank’s Equipment Finance facilities are designed to provide members with cost effective solutions including easy applications and fast processes. Their SmartSign® technology lets you review and sign your finance agreements anywhere, anytime. You only need a phone and online access via a computer, tablet or smartphone. There’s no need to print contracts, obtain a witness signature or even find a pen as this is done electronically.

A solution that’s right for MTA Queensland members Whatever the equipment you need, Commonwealth Bank has a range of finance options to help keep your business moving. These include: • Equipment Loans, Hire Purchases, and Leases

• Medical and Technology Managed Rentals

• Equipment Import Finance and Energy Efficient Loans

• Pre-approvals to help you negotiate the best possible price on the equipment

• Vehicle Fleet Finance and Management

• Progressive Loans that fund equipment as it is being built over time

Whatever you need to run your business, Commonwealth Bank is ready to help.

To find our more, contact MTA Queensland on 07 3237 8777.

Important Information: Applications for finance are subject to credit approval and the suitability of the asset. Commonwealth Bank of Australia reserves the right to require finance arrangements to be made with any Commonwealth Bank of Australia subsidiary. Bank fees and government charges may apply. Applicants consent to their name and merchant identification being provided to MTA Queensland to confirm their membership and eligibility. MTA Queensland may receive a fee from the Commonwealth Bank of Australia for each successful referral. Referral Fees are not payable on referrals from existing relationship managed Commonwealth Bank customers. As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances. You should seek independent, professional tax advice before making any decision based on this information. Full terms and conditions are included in our documentation or available from commbank.com.au Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit license 234945.

From the desk of the CEO

BRETT DALE CHIEF EXECUTIVE OFFICER MTA QUEENSLAND

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OR ALMOST 90 years, the motor trades have been riding the waves of technological change and has done so with innovation, reinventing business models and practices to meet modern mechanisation and digitisation. These continue to emerge with increasing speed. Undoubtedly, ahead will be challenging business and technological decisions for automotive businesses. In response to this, the MTA Queensland established Carmageddon as the platform to inform members of emerging technologies including the digital economy to enable business model adaptation; develop and implement strategies; to innovate and utilise new products to advantage their business.

It is critical for members to have the understanding and skills to ride the technological waves that will rock the motor trades over the medium to long term and that was the purpose of the Carmageddon symposium held on 7th March. Recognised experts and leaders with expertise presented addresses which included innovation, digital mastery, automation and data analytics to a large virtual and inperson audience.

On-site, a selection of hi-tech displays in the ‘Carmageddon Landing Zone’ left no doubt the Symposium was not ‘business as usual’ but about big technological changes pushing the intellectual boundaries for ideas to reinvent businesses and careers.

I welcomed the presenters and attendees and set the tone by impressing that automation and 4 | Motor Trader March 2017

digitisation is happening now and will incur profound economic, business and societal changes. Automotive value chain enterprises will either catch the wave and move to new service opportunities and data driven business models or drop-off. The Honourable Leeanne Enoch MP, Minister for Innovation, Science and the Digital Economy and Minister for Small Business opened the symposium highlighting the pace of change and Government policies to prepare and assist industry for the emerging technologies.

Queensland University of Technology Associate Professor Dr Michael Milford drew on his role of leading robotics research conducting interdisciplinary research at the boundary between robotics, neuroscience and computer vision.

This opened the symposium to discuss if emerging digitisation and technological change was a revolution or an evolution. Particularly this was in the context of automation and robotics, artificial intelligence, extensive computer potential and the increasing power of these technologies.

Over morning tea there was robust discussions on disrupter trends revolution or evolution. Considering the automotive industry’s long experience in adapting to change over time, I was initially on the evolution side, but considering the mass and rate of change inbound I now argue it’s a revolution.

The locally-based 3D Space Labs operators provided a fascinating insight into 3D printing and 3D scanning for reverse engineering, prototyping, and end production. The extent of 3D applications is massive, including healthcare 3D printed prosthetics and 3D printing with human tissue. The Australasian New Car Assessment Program’s Chief Executive Officer James Goodwin, in his role as an independent safety advocate, turned concentrations to the safety and societal aspects of semi-driverless or driverless vehicles. In view of the Australian Government’s inquiries into the social implications of driverless vehicles and regulatory option for autonomous vehicles, his address was timely.

Mr Niko Limans from the Department of Transport and Main Roads is an expert in the delivery of programs and projects across Australia and New Zealand relating to Cooperative Intelligent Transport Systems and discusses the establishing of this technology. From the perspective of preparing for driverless vehicles on State road infrastructure, clearly there must be a safety assurance framework that engenders confidence that the autonomous vehicle regulatory framework will provide a high level of safety expected by social norms.

An issue of significance for the automotive value chain is what it will look like in the coming decade. James Sturges, the Chair of AADA (Qld) and current MTA Board member and General Manager of Llewellyn Motors, explored the emerging technologies and digitisation impacts based on his long experience. The challenge was to break the present mind set and think into the future about the utilisation of best practice techniques and leadingedge technology, products, services and data to be delivered.

The MTA Queensland has delivered skills to the motor trades for more than 40 years through the MTA Institute. Integral to the emerging automotive value chain paradigm will be skilled cohorts across all technologies, digital devices and platforms. Sara Caplan, the CEO of PricewaterhouseCooper's Skills for Australia, and Dr Caroline Smith, Executive Director of Jobs Queensland addressed the need to stay abreast of emerging technologies to ensure a workforce with the prerequisite skills. The Queensland Government has a range of programs aimed at assisting small businesses to increase investment in and knowledge of technologies that enables them to compete in a new business paradigm.

Chad Renando, Community Manager at Fire Station 101 Innovation Hub in Ipswich, discussed how the Hub brings together mentor, investor and intern networks to foster entrepreneurship based around stateof-the-art digital infrastructure. It has a single focus - the entrepreneur’s

success. In other words, the address was about the Hub’s role in supporting individuals and businesses to turn grand ideas into business realities.

The Carmageddon symposium ended with an open forum discussing the technical and digital trends and the necessary mind-shift to embrace technological and digital readiness. The sentiment expressed by presenters and attendees alike was the symposium was an overwhelming success but Carmageddon itself is for the long term.

MEETINGS Separate to the Carmageddon symposium, I met with Chad Renando, Community Manager of Fire Station 101, following his return from the USA to hear about his visit to several innovation hubs and the work being done in similar entities. Ultimately, the aim is to establish at the MTA Queensland an auto exclusive hub similar to Fire Station 101.

Concurrent to Carmageddon, MTA Queensland business wheels keep turning. President David Fraser

and I met with the new Victorian Automobile Chamber of Commerce Tony Sanchez and the Deputy Chief Executive Officer to discuss issues of relevance and ongoing collaboration.

The Chair of the Queensland Motor Dealer Council James Sturges and I met with the Assistant Minister of State Assisting the Premier, and Member for Ipswich, Jennifer Howard to discuss the Government’s decision to deregulate trading hours for motor dealers.

Members have the strong view that it is an ill-formed decision and will be making a strong case that there is no overt consumer demand for change.

AND THE LAST THING The Queensland Government has revamped its Business Queensland website to provide better access to business license and permit requirements from the Federal Government, local councils, and SmartForms.

Importantly, website users can sign up for events, workshops and networking opportunities, apply for grants, listen to podcasts and stay up to date with

licensing requirements. The new site is at www.business.qld.gov.au.

Enthusiasm is high amongst our racing team, which includes MTA Institute apprentices, as they prepare the car for the first event. Sponsorship has been excellent with members and corporate partners recognising the potential with most levels sold.

I’m going to be brave and mention the President’s Ball. Deputy CEO Kelly Dewar promised not to raise it at least until July, but I must recount to you we’ve commenced the planning, secured the venue and the talent that will impress. So lock in the date - it is Saturday 28th October.

My focus in the coming month is to continue the Carmageddon initiative, work to grow the membership and network with stakeholders and the wider automotive value chain.

Until April, as Henry Ford, the industrialist and the founder of the Ford Motor company said, ‘execute ideas with enthusiasm . . . as it is the bottom of all progress’.

Policy/Viewpoint

KELLIE DEWAR DEPUTY GROUP CHIEF EXECUTIVE GENERAL MANAGER MEMBER SERVICES

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N BETWEEN WORKING with CEO Dr Brett Dale on the Carmageddon Symposium, two key advocacy issues emerged. The first is the State Government’s trading hours reforms and the second is the Commonwealth Government’s legislation to extend the application of GST to low value goods imported by Australian consumers.

TRADING HOURS State cabinet has adopted the

‘Review of Queensland’s Trading (Allowable hours) Act 1990’ recommendation that motor vehicle dealerships could open on a Sunday.

It was one of 13 recommendations - 12 adopted in full and one partially - which referred to trading hours in some regional towns. The reasons for adoption of the recommendations was to reform retail trading hours ‘to create jobs, end confusion and increase choice for consumers, and protect workers.’

The recommendation pertaining to motor dealerships stated: ‘the trading hours for non-exempt shops selling motor vehicles or caravans are to be the same as for all other non-exempt shops in Queensland’. This means that there will be harmonisation of what defines non-exempt shops e.g. large retailers, butchers, motor vehicles and caravans and there will be no differentiation in trading hours for shops which fall under these classifications.

Overall, there were 179 submissions from business, consumers, workers and other community representatives to the Review, of which 60 were from motor industry retailers. Of these, 55

submissions opposed Sunday trading for reasons which included negative social and economic impacts and the public having sufficient time to buy motor vehicles through the internet and within the available trading hours. The reference group ‘achieved consensus’ on the recommendation.

CEO Dr Brett Dale, Industrial Relations Manager Ted Kowalski and I met with the Chair of the Trading Hours Group John Mickel to discuss the current Vehicle Order and made a written submission to the review. We advised a survey was undertaken by us to ascertain the contemporary view of MTA Queensland’s motor vehicle sector membership on trading hours which indicated 90 per cent support for the retention of the existing Vehicle Order. We emphasised that the Association was unaware of any groundswell of public opinion seeking a change to the current provisions or of any significant breaches of the Vehicle Order by relevant dealerships.

Critically, we stressed that the Reference Group should evaluate trading hours in the context of a March 2017 Motor Trader | 5

Policy/Viewpoint holistic industry policy which includes the industrial relations framework and employment policy to provide for a robust evaluation of the trading hours for the motor vehicle sector.

Notably, in the Review’s report there was no mention of industry policy or the industrial relations framework and employment policy.

The next step is that amendments to the Trading (Allowable hours) Act 1990 will be introduced into the Queensland Parliament which subsequently will be referred to a Parliamentary Committee for consideration. We will prepare a submission which will be consistent with the views expressed in our original submission. I’ll alert members to the timeframe to enable comments from the motor vehicle dealership industry.

GST ON LOW VALUE GOODS The Commonwealth Government (supported by the States and Territories) has introduced into the House of Representatives the Treasury Laws Amendment (GST Low Value Goods) Bill 2017. This has been a long term advocacy issue, particularly for our Motorcycle Industry Division. As a result of the reforms, low value goods imported by consumers will face the same tax regime as goods sourced domestically. It will take effect from 1 July 2017.

Under the new arrangements, imported goods with a customs value of $1,000 or under will have GST collected at the point of sale, using a vendor registration model. Under this model, overseas vendors that have an Australian turnover of $75,000 or more will be required to register for, collect and remit GST on low value goods supplied to consumers in Australia as well as any other taxable supplies they make.

This measure applies also to online marketplaces - and called 'electronic distribution platforms'.

Online marketplaces that assist in the importation of goods into Australia, will be treated as a 'supplier' under the measure, and will be required to register for, collect and remit GST.

SUBMISSIONS I finished and submitted our response to the House of Representatives Standing Committee 6 | Motor Trader March 2017

on Industry, Innovation, Science and Resources inquiry into the social implications of driverless vehicles.

I drew attention to our Carmageddon Symposium and stressed that the MTA Queensland has long recognised the disruptive effect of structural and technological changes taking place in the automotive value chain. Experts predict that by 2030 there will be five million electric cars on the nation’s roads and a significant proportion of these will be driverless. For members' perusal, it is on the website.

On my radar to finish early is our response to Commonwealth Department‘s discussion paper on ‘Better fuel for cleaner air’ and to the Commonwealth Department’s Regulatory Impact Statements on ‘Improving the efficiency of new light vehicles’ and ‘Vehicle emissions for cleaner air'. These are due on 7th March - the same date as the Carmageddon Symposium.

CONGRATULATORY LETTER A congratulatory letter was sent to Deputy Premier Hon Jackie Trad on her commission as Minister for Transport which is in addition to her portfolios of Infrastructure and Planning. The Association has a sound working relationship with Department of Transport and Main Roads officers.

AUSKEY FRAUD ALERT The Australian Taxation Office has detected instances of identity thieves fraudulently obtaining AUSkeys linked to legitimate businesses. Once an AUSkey has been allocated, access is gained to the Business Portal so that fraudulent BAS can be lodged and bank details updated to accounts that are not controlled by the entity or business.

The ATO has detected this activity and recommends the following actions to protect your business: • check access manager to understand who in your business has AUSkey access and that their level of access is appropriate to their role • remove access for employees who no longer work for you • check the financial institution and contact details you have recorded with the ATO are correct.

‘PHISHING’ SCAMS Members should be on high alert for ‘phishing’ scammers who send fake emails claiming to be from wellknown brands offering a reward (cash) for taking part in a ‘quick and easy’ online survey. These emails include a link to an online form asking the user for a range of personal information including contact information and bank account details.

The Australian Communications and Media Authority warn against providing personal information for what is a criminal activity. To protect against scammers the rules are: don’t open SMS or emails from unknown or suspicious sources; never follow hyperlinks contained in the messages; and never use the same login details on multiple services. Anyone who has fallen victim to this or any other scam should report the details to the Australian Cybercrime Online Reporting Network. The government’s Stay Smart Online website has further tips on email scam protection.

FAKE PARTS Counterfeit car parts continue to emerge onto the automotive industry market. Component testing by the Federated Chambers of Automotive Industries indicated that some imported parts have proved to be ‘downright dangerous’ and unable to perform and protect vehicle occupants.

The FCAI has established a ‘Genuine is Best’ website to enable consumers to submit details of parts suspected not being the genuine article. Members suspecting a fake part trade can report it at www.genuineisbest.com.au/ report-a-counterfeit.

CHANGES TO ROAD RULES FOR QUAD BIKES A new safety measure rule has been implemented for quad bike and utility off-road users. Quad bike riders and passengers must now wear approved motorcycle helmets when operating on roads and road related areas.

The new rule came into effect on 1 February 2017.

Until the April Viewpoint, take care and stay safe.

Planning for a super future Matthew Webster, 45 has a long way to go before he hangs up his hat, but is easily able to picture his retirement years.

He plans to grey nomad it around Australia in a caravan with his wife, once he convinces her that it will be a lot more fun than she expects.

Matt has spent his career in the motor trades and is well on the way to ensuring he has enough super to be able to see the nation in comfort. He started an apprenticeship in 1986 at the age of 16 and now works in an automotive training role in NSW. He became an MTAA Super member when it was first established in 1989.

“I’m really happy I’ve been with MTAA Super. It’s the industry super fund for my trade and has been supporting careers in the automotive industry for over 25 years.”

“I’m still a long way off retirement but I do think about what I will do when I stop working and how I will support myself and my family.”

Matt, like many Australians is not alone in his concern about life after work. We can now expect to spend more time in

retirement than any previous generation, thanks to changing work patterns and increased life expectancy.

Leeanne Turner, CEO of MTAA Super mentions “As people start drawing closer to the 60-mark, they begin to think more seriously about what they would like to do in their retirement and how they will be able to finance it. With people living longer, weak interest rates and stricter rules around the age pension, these concerns have come to the forefront like never before.”

Leeanne shares, “The key is to take advantage of the compounding nature of superannuation. Super gives the opportunity not just to grow one’s employer and voluntary contributions but to grow the investment returns on these contributions as well.”

“Small amounts can go a long way.

Making extra contributions as little as $25 per week early in your career can result in thousands of dollars over a 30+ year working life.”

“Extra super contributions can be particularly important for people in casual or part time employment as well as those who’ve needed to take career breaks to raise a family or care for sick or elderly relatives.”

With increasing life expectancy, many Australians could be in retirement for over 25 years and may well need to look at ways to boost their super such as salary sacrifice contributions and personal contributions.

Give your super a boost!

For ways to give your super a boost while you’re still working visit mtaasuper.com.au/take-control.

1300 362 415 mtaasuper.com.au/take-control

This article is issued by Motor Trades Association of Australia Superannuation Fund Pty. Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty. Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited. The information provided is of a general nature and does not take into account your specific needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.

MTA

QA &

What products and services does your business provide?

DS: We are a boutique repairer specialising in respraying classic cars. Although we focus on Porsche, BMW and Mercedes, we also do a lot of retail work, and work with a number of prestige vehicle dealerships in Brisbane.

In many ways, we are a one-stop shop as we utilise a network of businesses to offer a full range of restoration services – mechanical, upholstery, exhausts, wheels, tyres and so on – to bring a vehicle back to its glory days.

What is your background and how did you come to establish the business?

David Stiling and a selection of the classic vehicles his team at Styling Automotive have restored

DS: I started my career in 1998 at Weatherall Prestige Auto Body in Brisbane. David Weatherall was a very successful businessman and the company delivered excellent work. I was just 18 years old and needed mentoring and the tradesmen working there were exceptional. I learnt a great deal.

I then went subcontracting before working for a firm called SmashCare where I moved through the ranks from floor production manager to estimating and eventually to general manager.

After that, I worked at a couple of other shops until I got a call saying that Brisbane BMW had bought Weatherall Prestige, that the business was to become the BMW bodyshop, and that they wanted me to be a production manager.

I went to work there and my manager, Anthony Alafaci, taught me a lot about running a business.

Then, unfortunately, I had a severe motocross accident and while I was in hospital a good friend of mine said, ‘I see you have some skills, why don’t you do it yourself ? You’re a tradesman, you can relate to the customers and I can teach you a lot of things’.

He then told me he had a shed, would give me three months’ rent free and that I

David Stiling established Styling Automotive just three years ago. In that short time, the 37-year-old tradesman has grown the Brisbane-based business from a one-man operation to a thriving company of six specialising in full paint, repair and restoration services of classic vehicles. should ‘get in and get going.’ So, I did.

That shed was just around the corner from where we are now and I started small. I worked on a motorbike tank for about $250, and then did a Hi-lux for $4500 – that was a lot of money at the time. I was working long hours to get things off the ground and it slowly started to build.

Then, one day, I was talking to the guy who owned the panel shop that occupied my current site. I was still in the process of setting up and he told me he wanted out. So, instead of setting up from scratch I bought that business.

That’s how things started three years ago.

How many staff do you have?

DS: There are six of us – all panel beaters and spray painters. Two are dual trade, which does come in handy, and between us we have more than 140 years’ experience.

I am actually looking for a couple more staff but I don’t want to be a massive concern. Being a boutique business that specialises in this area is fine. To have a business with 25 or 30 staff would, I think, be too much – it would feel like the business is the machine running me!

Who are your customers?

DS: I think you’ll find a classic car is most often owned by those in the 40 to 60 age bracket. We do get the occasional young man come in, but he’s likely to be a guy who can’t wait to get his hands on the car that dad has put away in a shed as an investment!

The son comes along and says ‘Dad, can we do something with that?’, and dad then gets the spark back.

I have a Porsche 911e in at the moment that is a ground-up restoration job and the father and son come in most Saturdays to see the progress, to talk to us and see other projects.

Another customer calls this place

the ‘toy shop’ – he knows his cars - and we have plenty of customers who have had jobs done and pop in to say 'g ’day' and see what’s happening.

We do have good relationships with our customers. When they come to us, we talk to them about the process we go through, about what they want, and work with them to achieve that.

We are passionate about respraying and repairing old cars and bringing them back to their glory days.

Do you have a favourite car on which you have worked?

DS: We had a little 1960 Fiat 500 come in which the owner had actually repainted using house paint!

He loved the car, wanted to use it regularly, and so wasn’t interested in it being ‘concourse’ – something that we can do, of course. We put a new interior in using old skins to keep the original feel and, after doing research on new Fiats, included the Italian green, white and red strip that runs along its body.

The customer loved it.

We have also done a Riley that the owner inherited from his mother.

Her name was Joanne and we came up with the concept of the ‘Jo Riley’.

We created a ‘JR’ logo that was laser cut and put into the car’s guards. We gave it a pearl white body, gunmetal grey guards and roof. We also put a red trimming strip to break up the two colours.

While these examples were something different, a lot of people like to get the car back to the original factory setting and it is true that the car is worth more money that way.

How do you find your customers?

DS: Word of mouth up until now.

This is going to be my big year and I plan to do advertising and get my website up and running. We do engage the community through sponsorship of

‘Cars and Coffee’, which is a car lovers’ get-together held the first Saturday of every month.

To what do you attribute your success?

DS: I think the success has been through our passion for the work and wanting to do a good job. We have become a boutique repairer known for what we can do. For us, it is about keeping up the excellent standard of work and focusing on customer expectations.

I suppose everybody says customer service is vital, but customer service is always at the top of the list. You need to keep your customers up to date, involved, and be upfront with anything unusual. If you do it right, then your customers will keep coming back. If they feel a part of the project then if the day comes when the car is scratched, or the bumper bar has been nudged, then we will pick up that job.

What does the future hold for Styling Automotive?

DS: The vision is to construct a purposebuilt shed that allows us to work on these cars exactly as we want to – with everyone having their own bays, benches, air lines, cabinets, tool boxes.

I also aim to have a vehicle project for the shop. We are so busy we don’t have time to do our own right now and I have to find the right car that fits us – it could be a Porsche, a Beemer, a Torana, a 55 Chev – we haven’t quite nailed that one down yet.

What do you do with your spare time, if you have any?

DS: Spend time with my family and motocross. I am passionate about motocross and that’s where I expend my frustration – when you are on that bike, on the start line, there is nothing else you can think about other than what is about to happen.

March 2017 Motor Trader | 9

Benz Patent Motorwagen (1886): Considered to be the first proper ‘car’, the Benz Patent Motorwagen was revealed to the world in 1886.

Renault Type A (1899): This 1.75hp Renault Type A is believed to be one of the oldest Renaults in existence, built in the year the company was established.

Rolls Royce 40/50 Alpine Eagle (1914): A classic Roller with an Australian connection, this Alpine Eagle was part of the 1988 Australian Bi-Centennial Rally and was driven from Perth to Canberra by the 3rd Baron Montagu.

Ace (1923): Founded by Scottish-born engineer William Henderson Ace used four-cylinder engines in its bikes. The company was subsequently absorbed by Indian in 1927.

10 | Motor Trader March 2017

A STROLL THROUGH AUTOMOTIVE HISTORY

M

OTORISED TRANSPORT HAS played a major role in shaping the way we live and how our society and communities work, and there can be few other inventions (perhaps only the microchip – think computers, smartphones etc) that have so revolutionised our lives.

Where would we be without the car, the motorcycle, the truck, train or plane? It would be a very different world indeed.

It is only 140 years since the first car – the Benz Patent Motorwagen – rattled its way out of Karl Benz’ Mannheim workshop, and it is staggering to think of how far the industry has travelled (excuse the pun) in that relatively

Morris Minor MM (1949): While designer Alex Issigonis is most famous for the Mini, the Morris Minor was an earlier hit for him with more than a million of the Minors being sold in its various guises between 1949 and 1971.

Auburn 851 Speedster (1935): The 4.5-litre, 8-cylinder, 150hp supercharged Speedster could reach 160km/h and its power and speed was reflected in its tremendous good looks. All Auburn Speedsters were tested to over 100mph before being sold.

Hispano Suiza Alfonso XIII (1912): An early example of the sports car, the 1912 Alfonso XIII was named after Hispano Suiza customer, King Alfonso XIII. Model T Van (1914): The Model T Ford appeared in 1908, making car ownership affordable to millions.

This Model T Ford Van from 1914 was similarly cheap (£110), enabling businesses to move to motorised transport.

Austin 7 (1922): Introduced in 1922, the Austin 7 was a best-seller in Britain and Austin became one of the country’s major manufacturers on the back of its success.

AT BRITAIN’S NATIONAL MOTOR MUSEUM short amount of time. Today, the automotive industry is one of the world’s largest, employing millions of workers and generating billions of dollars of income across a vast array of business sectors.

It is also a hotbed of inventive ideas and creative thinking and, as Motor Trader discussed in last month’s edition, on the verge of great technological change.

As the industry marches forward, confidently embracing the coming ‘innovation revolution’, it’s not a bad thing to take a look back at where it has been, for the history of the motorcar and motorised transport is a rich and fascinating one.

And, given the chance, there is nothing like a physical March 2017 Motor Trader | 11

AJS 7R (1958): A successful race bike produced from 1948 to 1963, the 7R was known as the ‘Boy’s Racer’ and was ridden to success by big name riders including Mike Hailwood – a 9-time world champion across various bike classes who also raced in Formula One. Triumph 6T Thunderbird (1949): The 650cc Thunderbird was introduced in 1949 in attempt to capture the American taste for a more powerful version of the 500cc Speed Twin. It became a great success and received a fair amount of publicity when Marlon Brando’s character rode a 1950 model in the film The Wild One. Lambretta Model B (1948): In the 60s, the scooter became extremely popular with Britain’s youth. That popularity had to start somewhere and this Lambretta was one of the very first imported into England in 1948.

rummage through history - being able to see a Bentley Blower ‘in the flesh’ is a lot more interesting than viewing one through a computer screen.

But where can you see these rare and precious vehicles?

Fortunately, there are places where these treasures still exist and visiting a world-class motoring museum is, for anyone even slightly interested in cars and motorcycles, a wonderful experience.

Britain’s National Motor Museum is one such institution and Motor Trader was lucky enough to visit recently.

It is a remarkable place.

Porsche 917 K (1969): One of the most successful racing cars ever, a 5-litre, 630hp Porsche 917 K won every race in the World Sportscar Championship in 1970 and 1971 seasons. This particular 917 K competed in those years and appeared in the film Le Man, starring Steve McQueen.

Land Rover R04 (1948): An off-road classic, this Land Rover is one of the world’s oldest – the fourth pre-production model.

Founded by Edward Douglas-Scott-Montagu, 3rd Baron Montagu of Beaulieu, the museum sits on the vast and ancient family estate in the south of England, sharing the grounds with the Montagu family home – the glorious Palace House - and the ruins of an ancient Abbey.

Though the museum was founded in the 1950s, its roots go back to the 1890s thanks to the career and interests of the 3rd Baron’s father - John, 2nd Baron Montagu.

An automotive pioneer – he was just 19 years old when Karl Benz unveiled the Benz Patent-Motorwagen in 1886 the 2nd Baron was quick to see the potential of the newfangled technology. He became an enthusiastic advocate of the motorcar, taking part in organised races including the Paris-Ostend race in 1899 and the Thousand Miles Trial around Britain in 1900 and, as a politician, he promoted a law making number Mercedes Benz 36/220 (1928): The Mercedes Benz 36/220, capable of a very swift 177kmm/h, was one of the first models created after the merger of Daimler and Benz in 1926. This 1928 model was once owned by actor Peter Ustinov.

12 | Motor Trader March 2017

AC Cobra 427 (1965): A 425hp, 7-litre (427ci) Ford V8, 0-160km/h in 8.8 seconds . . . the race version of the 427 Cobra was a monster. Originating from the British AC Ace, American automotive genius Carroll Shelby took one to the US in 1962, stuck a V8 into it and the rest, as they say, is history. .

plates compulsory and another that raised the speed limit from 12 to 20mph (32km/h).

He is also credited with creating, or at least commissioning, the original Spirit of Ecstasy – the sculpture of a woman with flowing robes that adorns the bonnet of Rolls Royce cars – and founding one of the world’s first motoring magazines, The Car Illustrated (1902).

In 1952, Edward Montagu created a tribute to his father and his passion for cars by displaying a number of veteran vehicles in Palace House. Within a short time, this tribute had morphed into an altogether grander proposition and a separate museum was founded.

Today, the purpose-built museum’s collection includes more than 300 vehicles and houses tens of thousands of objects related to motoring history.

It is a fascinating place, crammed with vehicles of real historical significance and here are a few of the stunning treasures on display.

Supercharged Bentley (1930): The 4.5-litre supercharged Bentley, better known as the ‘Blower’, was built in small numbers and made quite an impression on the public. So much so that Ian Fleming, creator of James Bond, had the suave British spy drive the ‘Blower’ in several of his novels.

Williams Renault FW18 (1996) and Lotus E20 (2012): The 3-litre, V10, 700hp Williams F1 car was a tremendous success on the track. In it, Damon Hill won 8 races in 1996, winning the World Championship. This car was used by Hill as a test vehicle that year.

RECORD BREAKERS: Bluebird, Golden Arrow and Sunbeam 1000HP: Fitted with a 350hp, 18.3-litre aero engine, the Bluebird, driven by Malcolm Campbell, set the Land Speed Record at 150.766mph (242.635km/h) in 1925. In 1927, Major Henry Segrave set the record in the enormous red 1000hp Sunbeam. Powered by two aero engines, Segrave reached 203.793mph (327.973km/h). Two years later, Segrave was at it again in the Golden Arrow. Powered by a 930hp aero-engine, the Golden Arrow reached 231.362mph (372.341km/h).

March 2017 Motor Trader | 13

MTAQ Racing Team

MTAQ TEAM ON TRACK FOR RACE SERIES DEBUT

Support crew members William Salmon from Maranoa Mechanical, Gerard Field from Team Moto Nerang Riotto. and Elliott Lemmon from Greg Tunstall Mechanical with MTA Institute Operations Manager, Marcello

T

HE FLEDGLING MTAQ Racing Team continues to prepare for its on-track debut in the 2017 Queensland Hyundai X3 Series Cup series.

Although the first race has been postponed until May thanks to an upgrade of the track at Morgan Park Raceway in Warwick, the team at MTA Queensland is sprinting to complete the race car and everything is going bang on schedule.

“It is all on track,” said Marcello Riotto, MTA Institute’s Operations Manager who has been coordinating the assembly and fit-out of the car. “The vehicle has been stripped and painted, the roll cage is fitted, and the MTAQ Racing Team crew have been working hard to overhaul and recondition the car and finish its assembly.”

With a mid-March deadline for the car to be completed, it has been an exhilarating experience for everyone involved and there have been quite a number of apprentices and MTA 14 | Motor Trader March 2017

institute trainers - who are not part of the MTAQ Racing Team crew - who have had the opportunity to muck in and help out.

“It is exciting, a lot of fun and the apprentices are pumped for it,” said Marcello. “We have had quite a few apprentices already work on the car– panel beaters, painters and so on – and more will get a chance, including auto electrical apprentices who will do the wiring and so on.

“The Racing Team crew are going to be doing the assembly, set-up and tune and support at the race meetings but there have been lots of others who have been involved.

“And that is part of the reason behind this project – that lots of apprentices will get exposure to the car and to learn what is required for a motorsport outfit.

It is a phenomenal training experience.”

The Hyundai X3 Series Cup is designed to be a grassroots competition – a budget, entrylevel category run under CAMS

(Confederation of Australian Motor Sport) regulations. Strict controls mean competition is held between cars of relatively equal capability with engine size restricted to a stock 1495cc, a Federal ‘control tyre’ to be used by every competitor, and mandatory safety requirements. It means that the car overhaul and assembly, as well as prerace preparation, will be vital to ensure MTAQ Racing Team driver David Wood is given the best machine possible to pilot around the track.

It will, said Marcello, be an intriguing run-up to the first race.

“This will be our first time taking part in this series, so we cannot be sure what the weaknesses of the car may be or what might happen,” he said. “But everyone is certainly looking forward to completing the build process, firing it up for the first time and getting into the thick of the action.”

To follow MTAQ Racing Team news, go to www.mtaq.com.au/MTAQ-Racing-Team.

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MAKE: HONDA MODEL: CB750 FOUR YEAR: 1976 ENGINE: 836CC FOUR-CYLINDER OWNER: ANDREW PORTA OWNED: FIVE YEARS

HONDA’S

ORIGINAL

SUPERBIKE

I

N 1948, A fledgling motorcycle manufacturer called Honda Motor Co., was established in Japan. With just 34 employees, it was a small outfit making small-engine bikes such as the 100cc D-type. Within 25 years, however, it was one of the largest motorcycle manufacturers in the world.

One way it achieved this was by recognising the demands of a given market and catering to those demands with a series of tremendously well-made machines. In the late ‘60s, Honda determined to develop high-performance machines for the public and, recognising that large-displacement sports bikes were popular in the United States, in 1967 the company began work on what would become one of its most iconic models, the CB750 Four.

Released in 1969, the CB750 was a tremendous success.

It was big, powerful, fast and comfortable, utilised innovative technology such as disc brakes (at the front, at least), and its four-cylinder engine was good for a potent 68hp and a top speed nudging 200km/h. Not surprisingly, the CB750 became known as the first ‘superbike’ and over the years has consistently been judged as one of the finest bikes ever built.

The CB750 on these pages is a 1976 model and has been owned by Andrew Porta for five years. Andrew, dealer principal at Cairns Honda, has worked some modification magic on it but, even with the changes, it remains emphatically a CB750.

“I wanted a CB750 because it was the first of the big inline fours and a ‘superbike’,” he says. “I bought it from a guy in NSW and it was in fair condition, rideable and pretty complete – it wasn’t a bad bike at all.”

Taking it to his workshop, Andrew proceeded to put in eight months of work into a project that would make this big bike uniquely his, giving it a café racer style he had always desired.

“It is quite heavily modified,” he admits. “I pulled the engine down, put in new pistons, new everything really.

I took it up to an 836, installed stainless steel valves, new chains and seals, re-did the bearings and bought a Tri-Y exhaust system out of the UK. The carbies were re-jetted to suit that new system and I also put a set of Gazi shocks on the rear and heavier springs on the front.

16 | Motor Trader March 2017

“I also put rear-set foot pegs on it and then, as it has a drum brake at the rear, brake rods to suit that rear set. I then installed a set of straight bars and had a friend of mine build up a seat and a rear cowl for it in a café racer style - I love the café racer style and I always wanted one of those.

"Finally, the colour was changed from blue with the paintwork done by Bear’s Body Work here in Cairns.”

The result of all this work is a CB750 ‘hybrid’ that really catches the eye. And the bike has become, Andrew says, a real talking point amongst customers of his dealership as well as for many who see it out on the street – when he has the chance to ride it.

“I ride it about once a month, not enough really, but that’s mainly because I am so busy,” he says. “I’m in the dealership six days a week, I have a young family and that just doesn’t leave me much time. But I do love to ride it when I can. I wouldn’t necessarily want to ride it to Brisbane but it is great for a Sunday ride!

“And it is a real head-turner and a good talking point for us too,” he adds. “I keep it in the showroom and it does make people stop and look. However, it’s usually the middle-aged customer who takes notice – people who might have owned, ridden or raced one in the past. The kids pretty much ignore it - to them it’s just an old bike with drum brakes!”

That ‘old’ CB750 is not bad work for someone who only moved into the industry four years ago, when he bought Cairns Honda.

Prior to that, Andrew spent 20 years as a cabinet maker.

“I grew up on a farm riding bikes and just loved them loved working on them and mucking around with them,” he says. “I always wanted a bike shop but my dad told me I was crazy and should get a trade. So, I became a cabinet maker. Then, four years ago, I sold that business and was able to buy Cairns Honda. And I love my job!”

For Andrew, that job is not only about running a business that sells and services bikes, mowers and power equipment, it is also about gaining his motorcycle mechanic trade qualification . . . It must be said, it is unusual to find a dealer principal who is also an apprentice in his own business.

“I am a third-year apprentice now,” he says with a laugh.

“I was working in the shop with my mechanics one day and they said to me that I was mad not to go for the trade.

I thought about it and decided to do it. And it is great.

It’s exciting working in this business and I just love it! I can’t wait to get to work in the morning and I don’t want to leave work at the end of the day. It’s the perfect job for me . . . in fact, it’s not really a job at all!”

After developing his skills over a lifetime, and polishing them through his apprenticeship, it’s little wonder that Andrew can deliver on a project like the CB750.

And it is not DO YOU HAVE A PRIDE AND JOY alone. Andrew IN THE GARAGE THAT YOU WOULD has another bike LOVE TO SEE IN THE PAGES OF project on the MOTOR TRADER? go – a 1984 Honda VF1000R - but Contact Jonathan Nash at jonathann@ both that bike and mtaq.com.au or 07 3237 8721 and let’s the CB750 form see if we can share your classic with other members. only a part of his collection. In fact, he owns 27 bikes of varying degrees of ‘classic’ status.

“It is a bit of an illness,” he jokes of his bike-collecting and restoration habit. “Of those 27, I might sell a few but there are some that I would never part with. I have a 1978 Honda Elsinore 250, a Maico, a Kawasaki KX420 and another CB750.

I also have a 2007 Honda CR250 that I keep in the showroom.

That is the last 2-stroke that Honda built. I bought it brand new and it has never even been started. I have had plenty of offers on that one but I would never part with it.”

As for this CB750, well, Andrew says he might part with that one day if the right offer comes along.

“I have had a couple of offers around the $13,000 mark and that is pretty close to what I would sell it for. We’ll see.”

March 2017 Motor Trader | 17

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MEMBERS MEMBERS ESSENTIALS ESSENTIALS

PAUL KULPA GENERAL MANAGER MTA INSTITUTE

Contents 19 Training GM's Professional Circle perspective 20 Professional Circle training 24 Member matters 27 Member profiles

CAR BUSINESS MAROOCHY AUTO WRECKERS

28 Industrial relations

W

ELL, WE SHOULD all be in the swing of the year and, if you're anything like us, it’s busy. We have been moving along with our transition to the new training package with the new assessment criteria, and most students will be transitioned over in the middle of the year. We are also beginning to get our new learning management system (LMS) into place. But, like most good things, there has to be testing done and processes worked through. As mentioned previously, the LMS will allow greater transparency for employers to view their students’ progression and training activity, and for students to record day-to-day tasks that make up their learning as they progress through their training.

As part of my role, I’m always looking to engage with the government and provide feedback from industry on ways the training system can be improved and give both employers and students what they want – a good education for the student and a productive employee for the employer. I was heartened recently when, while discussing our role as training provider, the feedback

ALLOW GREATER TRANSPARENCY FOR EMPLOYERS TO VIEW THEIR STUDENTS’ PROGRESSION AND TRAINING ACTIVITY, AND FOR STUDENTS TO RECORD DAY-TO-DAY TASKS THAT MAKE UP THEIR LEARNING AS THEY PROGRESS THROUGH THEIR TRAINING.” from the government as to what we do was exceptional. Likewise, while discussing our training with employers and students, they too also agreed our training and trainers are second to none. It’s always good to hear this feedback but, more importantly, this showcases us as the benchmark of automotive training.

On a final note, we have some important programs coming up that we are excited to run. These programs will help establish eligible job seekers by pairing them up with employers. I’ve always believed that one of the greatest gaps we have in our industry is setting the right person up in the right job. These upcoming programs will help employers get a better chance to screen prospective employees and lead to long-term employment outcomes – something that we all want. Stay tuned, as all will be revealed in my next GM’s perspective.

I hope everyone has a prosperous year, and remember, if there are any training issues you want to discuss, please don’t hesitate to contact us.

November 2016 Motor Trader | 19

E S S E N T I A L S

“ . . . THE LMS WILL

M E M B E R S

Training GM's Professional Circle perspective

E S S E N T I A L S

NOMINATIONS NOW OPEN FOR QLD TRAINING AWARDS N

MTAI TRAINER PROFILE

M E M B E R S

Professional Circle training

OMINATIONS ARE NOW open for the 2017 Queensland Training Awards, recognising and rewarding all those involved in training, including apprentices, trainees and employers.

Employers like John Edwards Automotive have used the awards as an opportunity to highlight their commitment to training excellence by nominating their business in the 2016 Small Employer of the Year award category.

Upon winning the Queensland award, John Edwards said, “the awards were a great opportunity to measure ourselves against other businesses, to make sure we’re doing all we can to improve our training standards and contribute to the industry.”

A family business based in Brisbane, training is considered a high priority for John Edwards Automotive. This is reflected in their commitment to employ apprentices and train them to ensure there are always fully-qualified technicians within the industry.

“Our business is highly technical

KEN RAHLEY

– we need to keep up with technical changes in the industry,” said John.

“If we don’t keep upskilling and training our employees, there’s no way we could succeed. We also are passionate about the industry and have seen that mechanics need more opportunities to develop and learn and we want to contribute to the workforce wherever we can and training apprentices is the best way to do that.”

Employers can also boost staff morale by rewarding hardworking apprentices and trainees by nominating them for an individual award category.

Many participants find being involved in the awards has given them more opportunities and responsibilities

What is your specialised area?

Motorcycles.

What do you believe is the most important aspect of training?

What is your background in the automotive industry?

Passion for your calling and staying true to the skills of a mechanic, not a parts fitter.

28 years working on motorcycles.

When did you become a trainer for MTA Institute?

2010.

What geographical area do you service?

Southeast Queensland.

What is the most satisfying aspect of your role as a trainer for MTA Institute?

Seeing students succeed, keeping their skills above average and watching them drive the motorcycle industry forward.

20 | Motor Trader March 2017

at work. They are also able to use their experiences to inspire others.

Queenslanders like Kurt Trask, who completed a Certificate III in Light Vehicle Mechanical Technology and was a 2016 Harry Hauenschild Apprentice of the Year finalist.

“Being part of the Queensland Training Awards was a great experience; I’ve gained more trust and responsibility at work, and the chance to be involved in harder, more complex jobs,” said kurt. “I believe you should take every opportunity you are given to excel, and the recognition you receive throughout the QTA process really motivates you to do better in your training and at work.”

Nominating for the Queensland Training Awards can be a great way to recognise and value the contribution of the people and organisations working in the automotive industry.

There are 14 award categories, including Small, Medium and Large Employer of the Year and nominations close on 31 March 2017.

For more info, visit www.qta.qld.gov.au.

Why should someone consider a career in the automotive industry?

You should only consider it if you love it.

What is the best piece of advice you can give to an apprentice starting out in the industry?

If it’s just a job to you, do something else that you enjoy. Life is too short.

When you’re not training, what do you like to do?

Ride and help my sons enjoy two wheels.

charge, costing under $2 in electricity.

Robert Davies' 2010 Mitsubishi i-MiEV is a compact car designed for city driving and exhibits a silent commute, regenerative braking and instant throttle response. The i-MiEV also represents the EV ‘green effect’ no exhaust fumes, no fuel consumption and the ability to charge on solar panels.

Mr Davies, the Director of Greenfield Power and an expert in clean energy, is passionate about the financial and commuting convenience of owning

an EV, and the very real benefits electric vehicles have on the environment.

Finally, owned and showcased by Charles Inder, is the Telsa Model S - the leader in electric vehicle innovation. Mr Inder has owned the vehicle since 2016 and made the decision to purchase one after building an electric vehicle in the past and experiencing a Tesla first-hand. Offering instantaneous acceleration and regenerative braking, the Tesla delivers 450km on Telsa Model S only a few hours of charge.

With an acceleration of 0-100km in under four seconds, not only is the Telsa incredibly fast it is also considered one of the safest vehicles on the road.

Mr Keenan, Mr Davies and Mr Inder are advocates of electric vehicles and support the belief that Australians can expect to see them in high numbers on our roads in only a matter of years.

The MTA Institute offers apprenticeships, traineeships and a wide variety of cutting-edge training courses. Go to mtai.edu.au for more information.

and understanding,” said Peter, Michael’s trainer.

“Michael is passionate in his own quiet way about his job and it shows in the quality of his work.”

Having grown up around motorcycles, Michael said it was a great to be working on them and there was plenty to learn about his new craft.

“I enjoy working on the rebuilds of race engines – high-performance stuff where every little bit counts,” he said. “I have also found race suspension interesting – how it works with the adjustments and so on. A lot of people think they know what is going on but it is complicated.”

While Michael now works for the family business it was not always certain he would end up there. His diesel fitting apprenticeship meant he gained valuable work experience with other firms and across other disciplines – an experience he is grateful to have had.

“My parents didn’t want me to work for them straight from school,” he said. “You probably don’t get

as much exposure of the real world if you do that, so I did work experience for other companies and did my diesel fitting apprenticeship with a large transport firm.

“I tried to venture down some different avenues to learn more but didn’t really get anywhere with that, so when my parents asked if I would come and work for them it was a new opportunity and I took it.”

Michael now works with his father, another apprentice and a trade assistant in the workshop and it is, he said, a great place to work. It is also likely to be where he spends a good deal of his career – future ownership of the business is a possibility.

“We’ve just completed an update of the workshop – extending the shed and putting in a new hoist - and it is pretty nice,” he said. “And with my parents looking to semi-retire and my sister running the spare parts department, it is likely that, eventually, my sister and I will run the business.

“It will definitely keep me busy, that’s for sure.”

APPRENTICE OF THE MONTH - FEBRUARY MICHAEL MORGAN IS the MTAQ Apprentice of the Month for February. The 22-year-old, third-year motorcycle apprentice has been working at the Morgan Motors motorcycle dealership in Michael Morgan Emerald for nearly 12 months, with his father, and Morgan Motors owner, Dean Morgan, and MTA Institute trainer Peter Jaensch overseeing his training. Having already completed a diesel fitting apprenticeship Michael has, thanks to recognition of prior learning, been able to progress rapidly through his qualification. His prior experience means he knows what is expected of him.

“Michael always has his theory book work done well in advance, his practical demonstrations are always well presented and accurate, and his answers to the oral questions show his depth of knowledge

March 2017 Motor Trader | 21

E S S E N T I A L S

N MONDAY 23rd January, industry experts and those passionate about automotive innovation joined forces at the MTA Institute to view the type of vehicles at the automotive world’s technological cutting edge.

On display was a repowered Mazda MX5, a Mitsubishi i-MiEV and a Telsa Model S, each vastly different representations of what electric vehicles (EV) can offer, but all showcasing the quiet and efficient performance with which electric cars are associated.

The repowered 1990 Mazda MX5 is owned by Dave Keenan who, alongside Mike Van Emerik and Jeff Owen, undertook the task of building an electric-powered vehicle from scratch in 2009. Dedicating one day a week over the span of four years, Mr Keenan, with his background in electrical and computer science, transformed the vehicle from the ground up. The resulting vehicle has more power and better handling than its predecessor, and contains a battery that delivers 130km on only 8 hours of

M E M B E R S

GLIMPSE OF THE FUTURE AT MTA INSTITUTE O

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

Professional Circle training

AMBRA’s national committee meeting was held at MTA Queensland and in attendance were Chairman Jeff Williams, Paul Back and Paul Unerkov from MTA SA; Steve Moir and Peter McMahon from MTA WA; Peter Donovan and Guido Merlo from MTA NT; Morry Corvase and John Guest from VACC, Michael Burke from MTA ACT; and Richard Dudley from MTAA. MTA Queensland CEO Dr Brett Dale, Deputy CEO Kellie Dewar and NACA Committee Chairman Ben Chesterfield were also in attendance.

MTA QUEENSLAND HOST AMBRA NATIONAL MEETING “ M TA QUEENSLAND PLAYED host to the Australian Motor Body Repairers Association (AMBRA) in February, with AMBRA’s committee holding one of its regularly scheduled meetings at the state-ofthe-art offices of the Sir Jack Brabham Automotive Centre of Excellence.

One of several Industry Sector Committees that are part of the Motor Trades Association of Australia (MTAA) structure, AMBRA’s mission is to represent and protect the interests of professional motor body repair members of Motor Trades Associations and Automobile Chambers of Commerce at a national level, and the two-day meeting covered a number of important topics facing the industry including shop grading and the establishment of a code of conduct.

Though MTA Queensland is not currently a member of the MTAA, it is in conversation with the Association regarding its membership and that ongoing collaboration, together with its standing within the industry, saw MTA Queensland invited to attend the AMBRA Committee meeting.

22 | Motor Trader March 2017

THERE WAS A GREAT DEGREE OF COLLABORATION AND UNITY AROUND ONGOING ISSUES IMPORTANT TO THE BODY REPAIR SECTOR AND SIGNIFICANT WORK WAS DONE AROUND THE AMBRA SHOP GRADING . . . ”

Dr Brett Dale, MTA Queensland CEO; Kellie Dewar, Deputy CEO; and Ben Chesterfield, Chairman of MTA Queensland’s National Auto Collision Alliance (NACA) committee, were all in attendance and it was, said Dr Dale, a productive and fruitful meeting.

“We are working with MTAA to re-establish our national membership and whilst we finalise the approach, the MTAA members and AMBRA have generously involved MTA Queensland in the planning, and invited us to actively participate with them,” he

said. “We were kindly offered the host role for this first meeting of 2017 by AMBRA’s Chairman, Jeff Williams, and this is the first meeting of its kind here in Queensland for many years.

“And the meeting went exceptionally well. There was a great degree of collaboration and unity around ongoing issues important to the body repair sector and significant work was done around the AMBRA shop grading strategy that has been designed to promote quality of repairers and instil consumer confidence and trust - similar to MTA Queensland’s Professional Circle strategy.

"Additionally, the voluntary code of conduct for the sector was further developed by the group and there is great anticipation that all members will be party to that Code of Conduct.”

The cooperation between MTA Queensland and MTAA will continue, as will collaboration with other industry organisations, interstate counterparts, institutions and national bodies as MTA Queensland ensures its members’ views are given a national voice.

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Looking after MTAQ and its members Lookingafter afterMTAQ MTAQand andits itsmembers members Looking after MTAQ and its members Looking after MTAQ and its members Looking MTAQ’s chosen firm for automotive industry complimentary legal advice

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As industry specialists we are ideally positioned to assist dealers and suppliers with operational issues such as commercial leasing, supply agreements, employment issues and franchise and consumer law. We have expert advice available to assist with dealership and business acquisitions and sales, financing, negotiations with lenders to the automotive industry, and business succession and restructuring issues.

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

Member matters

Lance Brooks, Mike Duffy and Sharine Milne from RHD Classic Supplies & Services

COMMUNITY FOCUS VITAL TO AWARD-WINNING MTAQ MEMBER B ECOMING A PART of the community in which it is based is fundamental to the success of any business – a business is, after all, founded on the basis it has services that its community wants and needs.

However, while the relationship may start as a purely commercial one, over time, it often becomes rather deeper and intimate. Fundraising for local charities or sponsorship of local groups are just a couple of ways that businesses give back to, and strengthen, the relationship with their community.

There are, however, some who extend their involvement even further and RHD Classic Supplies and Services in Townsville is an example of a business that has done just that.

Owned and run by Sharine Milne, the business supplies motorcycle services, parts and accessories to the Townsville area but the three-person team of Sharine, owner and mechanic; Lance Brooks, mechanic; and parts supervisor Mike Duffy are involved with their community on a far deeper level – a level that saw RHD receive the 2016 MTA Queensland Community Award.

It was an accolade that seemed to

24 | Motor Trader March 2017

Sharine received the 2016 MTAQ Community Award at the President’s Ball in November

surprise Sharine, who attended the President’s Ball in November 2016 to receive the award.

“We were all a little stunned to find out we had won,” she said. “Being a small shop we didn’t think we had a chance, but we are always thinking about our community and trying to make sure we can give back to those who help us. It was a great thrill to be recognised for the work we do.”

That work extends to a number of

areas but one that RHD focuses on in particular is helping those suffering from mental illnesses including Post Traumatic Stress Disorder (PTSD).

This focus has seen the business collaborate with the Inspire Clubhouse organisation, which assists in helping those in the community with their mental health recovery, and the Mates4mates program for injured or ill ex-military service personnel.

A condition most often associated with those who have served in the military, PTSD is, said Sharine, a problem that actually affects a wide range of people within the community.

“PTSD is something that is close to our hearts here,” she said. “Having lived for 6 years with someone who had completed several tours, including being in Afghanistan, I watched him change a little more each time he came back. But this is a condition that affects more than just our veterans.

Anybody who has gone through a stressful scenario can be affected.”

Sharine’s ideas to help sufferers of PTSD and other types of mental illnesses are clever and innovative.

There are project bikes ready for

M E M B E R S

Sharine has owned RHD Classics and Supplies for four years and has been shortlisted for Small Employer of the Year at the Queensland Training Awards in each of those years

those who want to learn about any aspect of how a bike works; there’s a specially constructed space in the showroom for people to gather and talk about issues and projects, and people are encouraged to use spare parts to create works of art.

“We have quite a few things Peter Arbuckle tests the ‘tool’ – designed to help him adjust to riding again after losing his left leg we pull off bikes such as gears and discs, chains and so on,” said Sharine. “People can come to the what I wanted to do - that I thought workshop, check out our ‘novelty‘ bins he had the strength to be able to ride a of these parts, create something and bike normally without having to resort really express themselves. We have to an expensive electronic shift. had guys make wind chimes out of “So, we built a ‘training tool’ for sprockets, clocks out of discs, and lots him – a piece of equipment that of other pieces.” replicates his bike exactly and uses Along with this broader assistance physiotherapy bands to help train his offered through RHD, several projects body to use the prosthetic limb to ride. designed to assist particular individuals “It has been a wonderful success have also come Sharine’s way. and, in fact, that project has been One of these is a recent project something of a ‘double whammy’ completed for Peter Arbuckle, who because we were able to include lost his left leg in a motorcycle a school-based trainee in the accident. The project involved creating development process. He was a young a piece of equipment, machined to man suffering from Attention Deficit the exact dimension of Peter’s bike, Hyperactivity Disorder (ADHD) that he could use to learn to ride again and this project really helped him using his prosthetic limb. focus and understand more about “When Peter first called, I went out mathematics and engineering – an to see him just to talk,” said Sharine. area in which he wanted to be “He had lost his leg in an accident involved. It was a great outcome.” and we talked, amongst other things, RHD’s community involvement about what he would have to do to doesn’t stop there. Sharine also offers prep himself emotionally to get back days where people can receive training onto a bike again. in basic bike maintenance – a skill she “He started coming into the shop believes is a very important one to have. and we discussed a few things and “That training is done one-on-one worked through some bits and pieces with me,” she said. “It may be basic and I eventually explained to him bike maintenance but if I can get the

correct information out, not only does it make the bikes safer, it makes the riders safer and makes them more knowledgeable about their bike and more attuned to the way it reacts when something isn’t right. When they have an intimate knowledge of their bikes it makes life easier for me when they have a problem.”

This attention devoted to training should come as no surprise. An experienced mechanic and a handson boss who loves working on the tools, Sharine is a former finalist in TAFE’s Pre-Vocational Student of the Year competition and the national Ulysses Motorcycle Apprentice of the Year winner in 2004, and her belief in the importance of training excellence has seen RHD shortlisted as Small Employer of the Year at the Queensland Training Awards in each of the four years she has owned the shop.

“We strive to better ourselves here so that we can keep up to date with the changes in our industry,” she said. “It is forever changing and will continue to do so. The only way to keep up is to train.”

There is no doubt that Sharine and the team at RHD Classic Supplies and Services will continue to be deeply involved in their community.

This engagement is part of their philosophy and will only grow stronger. A worthier winner of the MTA Queensland Community Award would be hard to find.

March 2017 Motor Trader | 25

E S S E N T I A L S

Giving blood as part of the Bloody Bikers RED25 blood donor group

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

Members matters

WILLMOT SMASH REPAIRS MARKS 40-YEAR MILESTONE A T THE END of February, Willmot Smash Repair Specialist in Cairns marked 40 years in business. Founded by Allan Willmot in 1977, those four decades have seen the company grow from a one-man show based in a small workshop to an operation with 24 highly-trained staff working with the latest technology available in a facility that now has three workshops.

The business is now owned by Allan’s daughter, Helena, and her partner and fiancé Wes Jenkins. The couple took over at the beginning of 2016 and the business looks set to grow under their guidance as they follow Allan’s policy of investment in training and equipment, a focus on customer service and keeping ahead of the game by understanding the industry's evolution.

“My dad is a panel beater by trade and moved up from Brisbane to establish the business,” said Helena.

“His dream was to be a leader in the industry and he constantly invested in the business to achieve that.

“What started as a little shop has now spread to three sheds – one which includes the panel shop and administration, one with three drive-through booths and the third for mechanical and detailing. We have a Complete Repair System booth, the latest in welding equipment and meet the criteria for Category 3 AMBRA shop grading. We have been an RACQapproved repairer for over 30 years and have Green Stamp accreditation – something dad put in place years ago, before it was mandatory.

“Dad was a forward-thinking owner and we have taken that on board.”

For Allan, there is plenty of pride that the business he started has become an industry leader – a goal he did indeed set for himself.

“It has been a long journey,” he said.

“My wife and I moved to Cairns in 1976 and set up the business with the idea of offering a truly quality product. And that worked out pretty well.”

26 | Motor Trader March 2017

as an Helena Willmot, Allan Willmot, Wes Jenkins and Michael Curtin. Michael joined the company service apprentice panel beater in 1983 and is now a senior estimator after notching up 34 years of

In the process of developing his own shop, Allan became involved with the MTA Queensland and the Australian Accident Repair Network (AARN) – engagements that saw Allan, and the wider Cairns and North Queensland repair shop industry, exposed to new ideas and technology.

“MTA Queensland would bring up industry speakers and it gave us access to information that made an instant difference," said Allan.

“Then we became involved with AARN and we got a lot of help from them. When we had the first seminar with them it was mind-blowing to hear what others were doing. They helped me understand what not to do and what equipment to buy, and I could call other members in the group – industry leaders such as David Weatherall in Brisbane – for advice.

“It was good for my business, and for others too - it gave everyone a more professional outlook on things.”

That drive for professionalism and business evolution is part of the Willmot Smash Repair philosophy and Helena and Wes are continuing that drive. And that includes moving to new premises. Located just down the road from the current location, the new facility – one large shop with a purpose-built fit-out - promises to herald a new phase for the company.

“The builders are already there

modifying it to suit our operation,” said Helena. “And though it will be a big move, bringing everything under one roof will make us much more efficient."

Also in keeping with the company philosophy will be a continued focus on staff, customer service and technology.

“Our staff are our biggest asset. One of our staff, Michael Curtin, joined as an apprentice panel beater and is now our senior estimator with 34 years of service. As for the technology, well, you need to know what is coming and need to be involved so that you can forecast for your business, plan and make sure training is available. If you’re not across these things, you will get left behind.”

Under the leadership of Helena and Wes, it’s clear Willmot Smash Repairs will continue to offer quality service perhaps for another 40 years.

“Our success is down to a combination of things, the whole package,” said Helena. “The quality of our workmanship, a focus on customer experience, highly-trained and happy staff and always reinvesting back into the business. The plan is to keep doing that and keep on growing.”

As for Allan, he is happy to know the business he started is in safe hands.

“I do still go into the shop,” he said.

“I give them a hand sometimes, but they have settled in really well. I know the business is in good hands and that was what I always wanted.”

What has been your proudest business achievement to date?

What is the best thing about working in your industry?

The people you meet and the relationships you build with them.

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

Make your customers long-term friends.

What would you say to someone thinking about joining MTAQ? It is an organisation with unequalled depth of knowledge.

Car Business Location: Kippa Ring Type of business: New Car Broker/ Used Car Sales Number of employees: 1

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Previously a member.

Trading since: 2015

How has being an MTAQ member benefited your business?

MTAQ member since: 2015

Offers true credibility within the industry.

the industrial relations service, the stationery range and integrity of the MTAQ brand.

What has been your proudest business achievement to date?

Being able to adapt to the changes in the industry and still be in business and operating successfully.

What is the best thing about working in your industry?

No two days are ever the same.

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

The harder you work the more successful you will be.

Maroochy Auto Wreckers Location: Kunda Park Type of business: Vehicle dismantling Number of employees: 3

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

What would you say to someone thinking about joining MTAQ? It ticks all the boxes.

Via industry word of mouth.

Trading since: 1986

How has being an MTAQ member benefited your business?

MTAQ member since: 1987

The availability of industry information,

March 2017 Motor Trader | 27

E S S E N T I A L S

Saving customers on new motor sales.

M E M B E R S

Member profiles

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

Industrial relations

TED KOWALSKI INDUSTRIAL RELATIONS MANAGER

Casual versus part-time engagement

W

HEN YOU REQUIRE an employee for less than 38 hours per week, you have a choice as to how to employ such a person. Usually, the first thing to consider is whether you need some flexibility in his/her work hours ie., will you only require the person to fillin at your busiest times as work flow dictates or for relatively stable hours.

CASUAL PROVISIONS If flexibility is the most important factor, you should consider a casual

engagement. A casual employee is paid by the hour and receives a 25% loading on their hourly rate because they do not accrue annual leave or sick leave and are not paid for public holidays - unless they actually work on the day. You should note that the standard casual loading does vary depending on what day of the week is being worked and whether the hours represent overtime. By definition, a casual is someone employed as such and whose employment is usually uncertain and irregular.

Under the terms of the Vehicle Manufacturing Repair Services and Retail Award (aka the Vehicle Award) a casual who has been employed for six months must be advised that he/she can apply to become a permanent part-timer. You are not obliged to grant the request if there are good business reasons for doing so. Advising the employee that by becoming a permanent part-timer they would lose the 25% casual loading will also have a bearing on whether the employee continues with their request. The most likely reason for refusing the request would be that the business requires the flexibility that a casual engagement provides.

The Clerks Private Sector Award does not impose an obligation regarding part-time conversion.

Under the Vehicle Award a casual can be employed for as little as an hour per engagement while the

Clerks Private Sector Award provides for a minimum of three hours per engagement.

PART-TIME PROVISIONS Where you require an employee for regular, fixed hours you should consider a permanent part-time engagement. A part-time employee must have fixed hours and days of employment which are set out in writing at time of engagement.

Any hours worked outside of those designated hours and days becomes overtime and must be paid for at overtime rates.

A part-time employee is paid the same hourly rate as a full time permanent employee, but only for the actual hours worked, and does accrue annual leave and sick leave in proportion to the hours worked.

They are paid for public holidays if a public holiday falls on one of the days they would normally have worked. Annual leave accrues at the rate of one-thirteenth of the ordinary hours worked per week and sick leave accrues at the rate of one twenty-sixth of the ordinary hours worked.

The unfair dismissal provisions also apply to casuals and part-timers who have served at least 6 months in a business employing more than 15 employees, and 12 months in a business employing fewer than 15 employees.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

168 Motors 1AAP Motoring Pty Ltd Ascott Projects Bargara Liberty Bridgestone Select Robina Caboolture Exhaust Centre Echelon Automotive KJ’s Service & Repairs My Mechanic Mate Nez Motors Precise Automatics Ultra Tune Ashgrove UMR Engines VIP Mobile Mechanical Wacol Muffler & Brake Shop

Aitie Wang John O’Brien Mark Ellacott Sandra Hatcher Miles Delcampo Craig Davis Andrew Missenden Ken Fowler David Reid Ezra Jamieson Neil Maxwell Les Petersen Graeme Norup Reece Richardson Shane Reid

776 Beaudesert Road, COOPERS PLAINS Q 4108 411-417 Mulgrave Road, EARLVILLE Q 4870 327 Gardner Road, ROCHEDALE Q 4123 18 Bauer Street, BARGARA Q 4670 86-104 Robina Town Centre Drive, ROBINA Q 4226 52 Beerburrum Road, CABOOLTURE Q 4510 12 Fox Street, ALBION Q 4010 351 Birt Road, KINGAROY Q 4610 18 Reward Crescent, BOHLE Q 4818 1/3 Hutchinson Street, BURLEIGH HEADS Q 4220 5 Logan River Road, BEENLEIGH Q 4207 161 Waterworks Road, ASHGROVE Q 4060 7 Moss Street, SLACKS CREEK Q 4127 100 Henson Road, CANNON HILL Q 4170 1/2 Industrial Avenue, WACOL Q 4076

Tony.msw776@gmail.com johnobrien@1aapmotoring.com.au admin@ascott-projects.com.au bargaraliberty@gmail.com miles@bsrobina.com cabexhaust@bigpond.com Echelonautomotive@gmail.com kjservice@bigpond.com mymechanicmate@gmail.com info@nezmotors.com.au preauto@iprimus.com.au ashgrove@ultratune.com.au engines@umrengines.com.au vipmobilemechanical@gmail.com Wacolmufflers@gmail.com AED

AED AADA ARD SSCSAQ TUDQ AED AED AED AED AED AED AED AED AED AED

28 | Motor Trader March 2017

Investment matters

MARKET WRAP

E

QUITY MARKETS AROUND the globe were generally higher in January, although some weakness was evident late in the month on the back of policy uncertainty generated by the Trump administration.

Leading sectors were Materials and other cyclical industries like Consumer Discretionary, Industrials and Information Technology rather than defensives like Health Care, Telecommunication Services and Utilities. Financials were slightly better than market performers as yield curves remained largely unchanged in the lead up to the US reporting season.

The S&P/ASX 200 Accumulation Index closed down 0.79% for the month. Materials (+4.80%) led, but the market was dragged down by the Property Trusts (-4.84%).

Following a strong end to the year, markets have paused as they assess the extent to which the Trump rally can continue. Here we discuss the factors impacting our current views.

Markets have enjoyed seven positive years in the past eight, which is an extended run by historical standards. Furthermore, the Price to Earnings ratio of the market is trading towards the upper band. This would ordinarily encourage an investor to lean towards a defensive tilt within their portfolios. However the rally has been unusual. It has not been associated with the usual froth and confidence seen during extended runs. Rather it has been characterised by cautiousness, lower interest rates

and strong support for defensive assets like property and utilities. The run has been a slow grind forward.

As a consequence, equities continue to look cheap relative to term deposit rates and bond rates (although interest rates are likely to increase from here).

The Trump economic policies should drive higher inflation given an expected lift in fiscal stimulus at a time when the US economy is tightening, given moves to protectionist policies and lower taxes should drive spending. A critical question for investors is whether the higher inflation is accompanied by faster growth. Either scenario (inflation or inflation plus growth) will most likely see a drop in the PE ratio, but earnings will be stronger in a growth environment driving greater support for equities.

Either scenario is also negative for many of the defensive assets that have enjoyed very strong support in a falling interest rate environment.

We are aware that many investors have not experienced an inflationary

environment. There has been a strong move to lower quality value companies in the past half, following years of underperformance. This is on the expectation of a cyclical earnings recovery.

We note that in an inflationary environment corporate margins are likely to decline, especially for lower quality companies with little pricing power.

The move away from growth to value over the past six months has rapidly reduced the PE dispersion in the market. The highest PE stocks in the market have pulled back and the lowest PE stocks have run on expectation of a cyclical earnings recovery. We expect opportunities will emerge to buy good quality companies over the next quarter. Expectations are currently being rebased, which provides a stronger entry point into this segment.

DISCLAIMER This document has been prepared by DNR Capital Pty Ltd, AFS Representative - 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. It is general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Whilst DNR Capital 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. The general information in this document has been prepared without reference to any recipients objectives, financial situation or needs. Before making any financial investment decisions we recommend recipients obtain legal and taxation advice appropriate to their particular needs.

Investment in a DNR Capital managed account can only be made on completion of all the required documentation.

March 2017 Motor Trader | 29

Concept corner

POETRY IN VMOTION T

HIS IS THE Vmotion 2.0, a concept car from Nissan that debuted at this year’s North American International Auto Show (NAIAS) and signals the company’s future sedan design direction and Intelligent Mobility technology.

It has been met with universal acclaim – picking up the EyesOn Design Award for Best Concept Vehicle at the NAIAS show – and the sharp lines and creases, sleek interior and features such as suicide rear doors certainly make it stand out.

Providing hints at the future of

30 | Motor Trader March 2017

“Nissan Intelligent Mobility” – Nissan’s roadmap to achieve zero emissions and zero fatalities – the lighting around the front Nissan emblem glows to indicate when the vehicle is in ProPilot mode – a mode which is envisioned to provide autonomous driving support technology on urban roads and at intersections.

The interior of the Vmotion 2.0 reflects that high-tech sensibility. The dashboard includes the instrument panel and infotainment system for both the driver and passenger with a single continuous horizontal display

integrating the ProPilot graphic user interface (GUI), and the steering wheel is designed to allow the driver and passenger to clearly see all the display infotainment without any interruption. For rear-seat passengers, the centre console features a smaller screen, which can serve as an extension of the main display.

With top-class materials used inside and out, there is a luxurious feel about the Vmotion 2.0 and we can only hope that Nissan follows the path its designers have come up with here – it looks like a winner to us.

Nissan's Vmotion 2.0

March 2017 Motor Trader | 31

Industry insight

KNOWING THE RIGHT NUMBERS – THE DIFFERENCE BETWEEN SUCCESS AND FAILURE I N MOST DEVELOPED countries, most businesses employ less than 20 people.

Over 40% of all businesses failed in the first four years.

And it would be fair to guess that as many as 50% of those would fail in the four years from then. We can reasonably assume that many non-employing businesses that are counted in these figures are people that registered a business, then find self-employment is not easy, let alone going on to build a successful enterprise, then get employed by others or go on to other things.

Now our usual subject in these columns is financial control and we’ll get to that, but it seems that whilst business numbers are growing year on year, the numbers of businesses that fail are growing almost as fast.

It’s understood that many business owners go into business for the wrong reasons. Some will open a new business with fanciful notions, without a good business model and without the understanding that the money that comes into their bank account is not theirs to distribute as they wish, it’s needed to sustain the longer-term health of the business.

We liken cash-flow to blood in your veins. You can take a little out now and again but too much and you’re gone.

So let’s consider the lot of a serious small business owner. He (or she) has a passion for their craft, is decent and honourable, wants to grow beyond a ‘one-man band’ enterprise, feels they

32 | Motor Trader March 2017

can make a difference and has visions of a profitable business, employing a good team of people and making a decent return on investment … and achieving a better life for the family than their parents ever did.

Such owners often risk their future and much of their past in order to start a business and employ people.

Small business owners in our view deserve a better break. Political parties don’t talk much about ‘real’ support for this sector? We don’t expect government to give business owners handouts, but the more business creates wealth, the more taxes and income available are for government.

We would like it to be easier to employ or let people go. We would like less paperwork and more recognition that for every person the small business sector employs, fewer people would be unemployed.

We would like recognition that without small to medium business, there would be much less wealth created for governments to spend!

The point is that statistically, if you go into business, you’ve got a higher chance of failure than most business

starters appreciate.

And when an established business fails, it’s not unusual to hear that the banks foreclose and sell up their assets, which could include their home.

The price of failure can be very high indeed for all stakeholders.

How vital is it then for a business owner, even if their natural inclination is to say, “Oh I’ll leave the accounts to my accountant,” to appreciate a working knowledge of the factors that influence cashflow and profit.

Why? Because there are far too many businesses that are profitable, but fail because they haven’t been able to manage cash-flow.

Most business owners would say “Surely the factors that influence cashflow and profit are making enough sales with good profit margins?” Those two are important … but actually there are five other factors as well!

Business owners should read up on these factors, or “Numbers” as we call them. The book Seven Key Numbers that drive Profit and Cashflow explains why and how these numbers impact on businesses and why - just making a small positive adjustment to say, three or four of these numbers, can make a very significant change to both cashflow and profit. Seriously!

The book describes how one business with a turnover of just $1M, improves cash-flow by $100,311 and creates additional profit of $60,383, without making one extra dollar in sales.

For more information, go to businessnumbersmadeeasy.com

220PC METRIC/SAE CUSTOM SERIES TOOL KIT 668w x 405d x 465h MTA1000 - $995*

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• ROE combination spanners • 1/4”, 3/8” & 1/2” Dr sockets & accessories • Adjustable wrench • Ball pein hammer • Pliers and cutters • Screwdriver set • Hex key sets • Pin punch set • Hook & pick set • Bit set & tape measure • 7 drawer steel tool box • Filter wrench • Hi/lo voltage tester

• 1/4”, 3/8” & 1/2”Dr sockets & accessories • Metric & SAE ROE spanners • Metric & SAE flare nut spanners • Screwdriver & hex key sets • Pliers & cutters • Multigrips & hammers • Pin punch & chisel set • Pry bar set • 7 Drawer Custom Series Tool Box • 7 Drawer Custom Series Roller Cabinet • Brake spreader • Filter wrench • Multi-meter

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• Spanners: 6-24mm ROE, 10-22mm Flare Nut, E-Torx E6-E20, D/Ring Brake Bleeder.

• Tools: Adjustable Wrench, Hammer, Pliers, Screwdrivers, Hex Keys, Tape Measure, Pick Set, Pin Punch Set, Bit Set, Ear Plugs, Safety Glasses, Filter Wrench, Razor Scraper, Feeler Gauge, Inspection Mirror, Magnetic Pick-up, Trim Removal, Air Duster, Multimeter, Light, Gloves, Parts Tray, Circuit Tester 11pce SAE Combination Spanner, Brake spreader.

Government Trade Support Loans and SP Easy Credit available - please enquire below.

MTA INSTITUTE March 2017 Motor Trader | 33 Tel: 07 3237 8735 | Email: russells@mtaq.com.au | www.mtai.edu.au

20170470

*Including freight to business address.

Craig Lowndes, TeamVortex

The # 1 choice of TeamVortex and 40,000 other businesses Make it Yours

08/16

1300 362 415 mtaasuper.com.au

This document is issued by Motor Trades Association of Australia Superannuation Fund Pty. Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty. Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited. The information provided is of a general nature and does not take into account your specific needs or personal situation.

You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.