APR 2017
OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND
MEMBERS CLASSIC: 1955 VAUXHALL VELOX UTE
The benchmark of industry standards.
LIM ITED PLA CES Repair
RTO No: 31529
Paintless Dent Course - ADVANCED Right training.
Course Overview
Right place.
In this course you will receive intense training to further enhance your skills and knowledge of this exciting industry resulting in a level of competency that will allow you to operate at a commercial level.
Right way.
The course will commence with a refresher of the fundamentals then delve deeply into technical and practical solutions in areas including:
COURSE INFORMATION » Description » Venue
MTA Institute is running a five-day Advanced Paintless Dent Repair course.
· Advanced Tools
· Large Dent Removal
· Blending Techniques
· Crease Dents
· Glue Pulling
· Double Dents
· Techniques
· Hail repairs
· Types of glue
· Aluminium Work
· Pulling tool options
· Finishing
Concluding with a Review and Assessment. This course is a must for those that wish to get a significant return on their investment.
» Length of course
We look forward to seeing you there.
» Training and
Date:
8th – 12th May 2017
Time:
9am to 4pm, lunch included
» Services
Location: MTA Institute, Eight Mile Plains
assessment delivery
» Fee information
Cost:
$6,600 per person (Inc GST)
» Consumer rights
Enrol
» How to enrol
Should you wish to enrol, or require further information, please contact one of our friendly staff on 3722 3000.
www.mtai.edu.au
MTA Institute
Search for MTA Queensland
Free guest Wifi at MTA Institute
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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 08 MTA Q&A NICK PARKER-DAVIES FROM THE KOMBI SHOP
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Feature 10 CARMAGEDDON: LEADING THE WAY ON THE FUTURE OF AUTOMOTIVE 16 Members Classic VAUXHALL’S BEAUT UTE: 1955 VAUXHALL VELOX UTE
MEMBERS ESSENTIALS 19 Training GM's Professional Circle perspective 20 Professional Circle training 24 Member matters 26 Member profiles 28 Industrial relations 30 Concept Corner MERCEDES-AMG GT CONCEPT 32 Industry insight THE UPSIDE OF A DOWNTURN April 2017 Motor Trader | 1
From the editor
JONATHAN NASH EDITOR
H
ELLO AND WELCOME to the April 2017 edition of Motor Trader. In March, the MTA Queensland hosted the Carmageddon Symposium and that is the focus of our main feature this month. A look at the technological innovations that will soon affect our industry, the symposium was a tremendous success. More than 70 guests attended the all-day event and it was also broadcast live over the internet. Those who watched or attended in person were treated to a comprehensive program of presentations that covered the technological disruptions heading our way. Guest speakers included academics, industry heavyweights and Queensland government
representatives who spoke not only about the initiatives being put in place to help in the adoption of these technologies, but also about the programs available to businesses that can assist them in taking advantage of the opportunties these changes offer. Feedback and outcomes from the Carmageddon event have been very positive and you can read more about those in CEO Dr Brett Dale's From the Desk of the CEO column on pages 4-5 and in our cover story on pages 10-13. In our MTA Q&A feature, we talk to Nick Parker-Davies from The Kombi Shop on the Sunshine Coast. Having established the restoration business just 12 years ago, the response from the VW community has been very positive, with the business becoming the largest Kombi restoration shop in the southern hemisphere. In our Member's Classic feature, we chat with Scott Gist from Supreme Automotive Bosch Repair Centre in Brisbane about his fabulous Vauxhall Velox Ute. The ute is a bit special not only because of its age and good looks but for its relative rarity – it was only available in Australia and was discontinued in 1957. In training news, we focus on MTA Queensland's new Collision Repair Assistance to Support Hiring Apprentices (CRASH) training program. Established to assist industry in finding apprentices who have a passion for the work, the program was
conceived to impart the basic skills required to work in the Collision Repair and Refinishing industry. The 10-week program offers participants the opportunity to gain a Certificate II in Automotive Body Repair Technology and includes modules on a variety of subjects, plus a work placement component, that will prepare them for the workplace and be ready to take on an apprenticeship. In other news, we have a message from the Office of Fair Trading reminding motor dealers of their legal obligations under the Australian Consumer Law (ACL) and, on pages 2425, we talk to Iain Kippen from Bissell's Paint & Panel about the state-of-the-art workshop he designed for his business. Purpose-built, the facility really is a marvel, and a testament to Iain's drive to provide excellent service as efficiently as possible to his customers. 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 April 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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O OUR MEMBERS and fellow Queenslanders impacted by cyclone Debbie, our thoughts are with you in this recovery period and individually we will contribute to public appeals. Responsibility comes in many forms. Having given birth to the concept of Carmageddon, I’ve felt the weight of explaining and promoting it and ensuring the 7th March symposium was a success. To digress for one moment, I’ve a new and proud birth responsibility - as a grandparent to Eli Brett Clark. Apart from the joy of having the little man in my life, I’ll contribute to nurturing him in all that’s good in life in a fast-changing world of ideas, services and emerging technologies - starting with the toys. Carmageddon was a huge success. The outcome resulted in numerous opportunities surfacing which we continue to have under consideration. These include working with the State Government on autonomous driving technology; securing a 3D Printing company as a tenant and future partner; working with Jobs Queensland on their Apprentice and Trainee project on emerging technology in the automotive industry; and continuing to work with and support two new start-up companies. As a consequence of the symposium I discussed with Jobs Queensland Officers our participation in a focus group on an apprenticeships and traineeships project on the automotive industry. The aim of this project is to identify what works well within the 4 | Motor Trader April 2017
apprenticeship and traineeship system for employers, apprentices, trainees, industry and the broader community. A helpful discussion paper on building Queensland’s apprenticeship and traineeship system Positive Futures: Apprenticeships and Traineeships in Queensland is available at (training.qld. gov.au/site/employers/Documents) for the interest of Members. We are keen to use this focus group to explore the issue of technological change/digital disruption; the impact this has on apprenticeships and traineeships and how apprenticeships and traineeships can best meet the evolving skills needs associated with these changes. For this purpose, the MTA Queensland will host a focus group at our corporate office and arrange for a group of key industry stakeholders to be present. The intention is to have broad delegations from each of the MTA representatives from non-urban areas to provide regional perspectives and large and small employers to present their views. Jobs Queensland will organise the content and the facilitation of the session, which will take place on April 10. Separately to the focus group activity, I met with the State Education and Training Industry Skills Director Tim Maloney. I wanted to impress that there is a flaw in the apprentice and trainee system that we would like remedied. That is the absence of a State-based mechanism to determine training priorities and investment to gather market intelligence for national advisory entities. The MTA Queensland has a guaranteed position on the strategic Industry Reference Committee and ideally a State-based industry advisory body would be of advantage and should be re-established. In our response to the Department of Education’s Advancing Skills for the Future discussion paper we will advocate its establishment. It’s one thing to talk about technological change and digitisation; it’s another for the message to be heard, to be proactive and to commence integrating practices and innovations into business operations and models.
Members and stakeholders have indicated to me that they are keen to maintain and foster the collaborations and interactions established at and through the 7th March symposium. For this purpose, a Carmageddon II will be held in early July to align with the State Government’s ‘Advancing Industry’. Its focus will be on business platforms that contribute to efficient and economic business activities in the digital era including: record management and the utilisation of cloud storage for digital data; accounting packages; and customer relations management systems. At this time, I do not have a date to hand. I’ll keep members informed on this event in May’s From the Desk of the CEO and via the website.
ACTIVITIES I attended an Industry Roundtable with the Deputy Director General of Queensland Department Small Business and the Small Business Champion. Discussion centred on how the Department may better engage and plan for future regulatory requirements and programs to complement and not duplicate compliance obligations for individual businesses. From my perspective, it was clear that, regardless of the industry sector, the compliance challenges facing small businesses are similar. Equally, the challenges of Government as a regulator are parallel to that faced by regulators around the world. I recommended a focus on programs that will include supporting business transformation and not just start-ups. I’m looking forward to building on the discussion at future roundtables. The State Department of Education and Training visited the MTA Institute for a photo session that will showcase it in future departmental training promotions. We were delighted to participate in this to emphasise the automotive trades as a career path of merit and, of course, our state-of the-art facilities. A different activity was attending the Victorian Automobile Chamber
of Commerce Annual President’s Ball. The keynote speaker was from Tesla, which aligned with its interest and plans to establish a trading centre in the Valley (Brisbane). This event provided an excellent opportunity to network with key industry figures including other State MTAs, MTA New Zealand, the Federated Chamber of Automotive Industries and the Victorian government's Road Transport on new road technologies. In an effort to broaden our reach into academia, I met with Queensland University of Technology (QUT) Associate Professor Michael Milford (a Carmageddon symposium presenter) and Dr Mark Gibbs. This was to discuss future engagement with QUT to establish a collaborative dialogue between academia and the automotive value chain. The discussions included partnering in white paper opportunities, extending QUT’s reach to business and consideration of advancing eLearning strategies under commercial arrangements. An interesting meeting was with the Department of Main Roads Qld CAVI (Cooperative and Automated Vehicle Initiative) to discuss the
potential to utilise the MTA Institute’s auto-electrician capability relating to wireless technology. This would enhance the work on the Cooperative Intelligent Transport Systems project underway. Officers inspected the MTA Institute’s workshop to assess its capability and discuss possibilities of our involvement. As Deputy Chief Executive Kellie Dewar indicates in Viewpoint, we’ve been proactive in working with our retail sector and by extensive advocacy in media on the issue of the deregulation of the motor vehicle trading hours. Kellie and I followed up with evidence before the Finance and Administration Parliamentary Committee. Additionally, we arranged for witnesses with businesses in the retail sector to attend the public hearings at eight regional centres.
AND THE LAST THING Over the coming weeks some of my focus will be on connecting members to the new opportunities emerging from the 7th March Carmageddon symposium and the forthcoming event. I’ll continue to engage with the relevant business innovators and digital economy
specialists who can either inspire or support our Member businesses. A significant focus will be on the domestic issue of ‘driving home’ the Association’s businesses through the ‘last leg’ of this financial year. This means hard work and commitment for each of us at the MTA Corporate Office as we have two equally important functions. Running in parallel to the provision of diverse and quality Membership services is the commercial management of two companies to ensure their viability in the long term. These are substantial businesses and a conscious effort is expended to maximise activity and to look for new commercial opportunities. This includes the financial planning for 2017-18 financial year and reviewing the strategic plan to ensure our performance continues to improve in the best interest of the Association and the Membership. Until May, 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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T WAS NOT until reviewing my schedule for this Viewpoint, did the extent of the activities emerge that has kept the Membership Division and me on our toes. Regardless of how busy we are, however, that all pales into insignificance when we consider what has happened with fellow members
and staff and the devastation they are facing after Cyclone Debbie. Our thoughts are with you. In last month’s Viewpoint I gave you a ‘heads up’ on the pending deregulation of the retail trading hours for the motor vehicle dealer sector. This issue has picked up steam over the last month. The Trading (Allowable Hours) Amendment Bill 2017 (the Bill) was introduced into the Queensland Parliament on 1st March. Chief Executive Dr Brett Dale and I delegated it as a priority. We engaged in extensive consultations and collaborations with the Chair of Australian Automobile Dealer Association Queensland (AADA (Qld)) James Sturges, sector divisional Members and Caravanning Queensland on the Bill’s contents and our response. The contemporary and policy position on the motor vehicle dealer retail trading hours has been the retention of the existing State Vehicle
Order. This stance was reaffirmed at a specially convened forum attended by an excellent urban and regional spread of Members in person or by phone. It was important to reaffirm the policy position as it was necessary to represent this agreed stance in the MTA Queensland’s submission to the Parliamentary Finance and Administration Committee examining the Bill. In addition, it will form the basis for our evidence before the Committee in Hearings on the Bill. There has been media interest in our policy position of opposition to the deregulation of the motor vehicle retail trading hours. Brett has been on the front foot with electronic and print statements and no fewer than 10 interviews expressing clearly our stance and viewpoints for the retention of the State Vehicle Order. 2017 has already seen a significant increase in the profile of MTA Queensland. Through a April 2017 Motor Trader | 5
Policy/Viewpoint concerted effort in distributing media releases and statements on many topics in which our members have an interest, and via increased activity on digital platforms, the Association has seen a huge surge in coverage on radio, online and in the press. The media releases for February and March have had a collective reach online and in print of 20.6 million, with mentions in significant publications like The Australian, Herald Sun, Courier Mail, Gold Coast Bulletin, Cairns Post, Wheels Magazine, ABC News (radio) and 4BC to name a few. It is our intention to continue issuing media releases to ensure our Members’ voices are heard. Our social media presence on Facebook, Twitter, Instagram and YouTube has a collective following of 2,600. We want to continue to encourage members to follow us on these platforms as an additional communication avenue to member bulletins and the Motor Trader. Simply search ‘MTA Queensland’ to get real-time information on events (like Carmageddon), industry news, State Government grants available, MTA Institute Courses and the Jobs Board. Facebook posts for March had a reach of 45,000 while Tweet impressions were at 8,859. Our websites www.mtaq.com.au and www. mtai.edu.au had combined page views for March of 13,263. These figures represent large increases to our profile and presence in the digital space.
NEW CORPORATE PARTNERS Members have informed us consistently that a major issue for them is the cost of doing business, particularly energy costs. With this in mind, we’ve introduced a new partnership with Gambit Solutions to be our preferred electricity and gas broker after trialing their energy solutions over several residential and business sites. To learn more or to register the website address is: gambitsolutions.com. au/motor-trade-association/. For more information visit the Member’s Benefit Page on our website. Additionally, we have developed a partnership with Safety Help for the supply of an Occupational and Health 6 | Motor Trader April 2017
Safety (OHS) service. For more details visit our website or www.safetyhelp. com.au. I encourage Members to research the benefits offered by our new partners.
ADVOCACY Since the March Viewpoint, I’ve lodged the submission on the deregulation of the retail motor vehicle trading hours and the response to the Commonwealth Department of the Environment and Energy’s Better Fuel for Cleaner Air Discussion Paper (the Discussion Paper) and related Regulation Impact Statements. These are on our website. Pending is a response to the Fair Trading (Fuel Price Boards) Regulation which has as its core policy that a fuel retailer must not display a discounted fuel price for a type of fuel on a price board. This has been a long-term discussion issue for the Service Station and Convenience Store Division and it is now comfortable with the final policy position. On the books too is a submission to the State Department of Education and Training’s consultation draft on Advancing skills for the future: a strategy for vocational education and training in Queensland. The quarterly Divisional meetings have been held, each of which my staff and I have attended. I encourage members to actively participate in meetings when they have the opportunity - we can accommodate teleconferencing. We will also have nominations opening on the 1st May for the following divisions and regions. The Election Notice will appear in the next edition of Motor Trader and on our website. • Automotive Remarketing Division (ARD) • Engine Re-Conditioners Association of QLD (ERAQ) • Service Station and Convenience Store Association of QLD (SSCSAQ) • Rental Vehicle Industry Division (RVID) • Auto Parts Recyclers Division (APRD) • Far North District Representative Queensland • Central District Representative Queensland Currently, the Australian Parliament is debating the Competition and Consumer Amendment (Misuse of Market Power) Bill 2016. Since 2014, we’ve engaged by way of submissions
to the Harper review of Australia’s competition policy. This review recommended re-framing section 46 of the Competition and Consumer Act to prohibit a firm with a substantial degree of power in a market from engaging in conduct with the purpose, effect or likely effect of substantially lessening competition in any market. In our submission, we supported the introduction of an effective misuse of market power provision as an advantage for Australian competition law and for small/medium enterprises. I draw Member’s attention the Office of Fair Trading Brian Bauer’s article in this edition of the Motor Trader. Essentially it reminds motor dealers of their legal obligations under the Australian Consumer Law (ACL) particularly honouring consumer guarantees on faulty vehicles. I urge Members to peruse this article as consumers are going to the Australian Competition and Consumer Commission (ACCC) and its State and Territory counterparts about their difficulties with resolving motor vehicle concerns and enforcing their rights under the ACL.
AREA MANAGERS We have boosted resources to member services. Area Manager John Robinson will be responsible for the region north of the Brisbane River to Bundaberg and the south-west. Area Manager Andrew Bear will serve the Tweed River border to south of the Brisbane River region. John and Andrew have been with us since last July focussing on business development.
PRESIDENTS BALL I promised I wouldn’t mention the President’s Ball until July but, as the saying goes, something shared is something gained. I trust you will gain from this inside intelligence. The theming for the 28th October 2017 President’s Ball at the Hilton will be ‘Advancing Industry’ which aligns with our emphasis on promoting the emerging technologies and digitisation connectivity to enhance Members’ businesses. Until May, 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 The Kombi Shop provide?
NPD: In a nutshell, ground up restorations of Kombis. The steps for restoration is first sandblasting, then to the fabrication shop for panel work, the body shop to get everything straight, then the paint shop and the build shop. From there it’s to the mechanical shop where we basically build brand new engines and transmissions and put the whole thing back together as a brandnew vehicle. Finally, it goes into the trim and cabinetry shop. Customers can choose the paint colour and, once the paint has been done, come back and choose the fabric swatches for the interior. The interior is a bespoke design – the customer chooses the stitching, the piping, whether they want cabinetry, cookers, fridges and so on. We do the job right through to the road worthy. We don’t just work on Kombis, although that is 98 per cent of our work. For example, we have worked on a VW ‘Thing’ – what was once a military vehicle for the German army and, of course, we do Beetles too. We also sell parts through our website and offer servicing and mechanical work on these vehicles. Nick Parker-Davies
Who are your customers? NPD: There isn’t a single demographic but we see a lot of people in their 50s, 60s and 70s - people who had a Kombi when they were kids. We also see surfers of all ages, and men and women of all ages who are looking for something different. We also have corporate customers – we did a 50th anniversary Kombi for Cosmopolitan magazine - and some interstate customers. If you can afford it, it’s a no-brainer to have a Kombi. The prices are soaring and what else on wheels goes up 15-20 per cent guaranteed? Plus,
8 | Motor Trader April 2017
CLICK TO CLICK TO CLICK TO VISIT VISIT VISIT THE MTAI.EDU.AU MTAQ.COM.AU Nick Parker-Davies on one most WEBSITEis an expert & LEARN MORE of the world’s & LEARN MORE
famous vehicles - the VW Kombi. The expat Englishman established his restoration business, The Kombi Shop, on the Sunshine Coast 12 years ago and the response from CLICK TO the VW community has been fantastically strong, with CLICK TO CLICK TO GO VISIT THE the business growing theBISSELL’S largest VW Kombi SUPREME DIRECT TOto become VISIT PAINT & PANEL AUTOMOTIVE’S THEin PAGE WEBSITE restoration shop the southern hemisphere. WEBSITE a Kombi is a lovely thing to drive even more so when you know that when you’re driving it today, it’s worth more than when you were driving it yesterday! CLICK TO
VISIT SANDGATE
What is your background in the industry? WRECKERS’
NPD: I did my apprenticeshipWEBSITE as a mechanic and worked in a number of body shops in the UK before starting my mechanical shop when I was 21. About 7 years later, my wife Keri and I were out driving and saw a split-screen Kombi. We both thought it was cool and decided to restore one ourselves. We did that, and when we had finished it in terms of paint, the mechanicals and so, we jumped online to buy a camping interior for it. People often don’t realise that VW never actually made a 'campervan' - they built the van only. Companies like Sunliner and Westfalia bought the vans from VW and put their own interiors in them - which is why Kombi model names reflect the names of the coachbuilders that converted them. Anyway, I could not find a camping interior anywhere. So, I sat down with a friend who was a cabinet maker, sketched a few ideas of what I wanted and asked him to build the interior and to template it. That van was an award winner and I launched a company called Bus Guts selling bespoke Kombi interiors. The first show we went to as a business was a massive show in Wales. I had 2000 business cards printed and went along with my brother. After we had set up, I went for a walk and after about 20 minutes he called me saying ‘You better get back here now!’. About 70 people were looking the Kombi over and waiting to talk to me! All 2000 business cards were taken at that show and my business soon morphed into a VW garage because people would drop their vans off for us
CLICK TO VISIT THE KOMBI SHOP WEBSITE
to do the interior and we would end How many staff do you have? CLICK TO up doing their brakes, paint and so on. NPD: We have 8 staff:WATCH two guys in the THE After 8 years, we sold that business fabrication shop, three VIDEO in the body and moved here to Australia and, and paint shop and two of us in after a bit of a break, set up here in a the mechanical shop. Keri runs the CLICK TO CLICK TO little shed on my own. And it has been VISIT THE administration side of the business. VISIT THE ROSS insane! We now have three huge sheds, OFTMy sons work here too. Connor has STARKEY are flat out, and booking in work WEBSITE WEBSITE completed his paint apprenticeship months in advance. and is now doing his mechanical I never thought it would go as well apprenticeship. Jamie, my eldest son, as this but it might have been a perfect came over from the UK last year and is storm for me. No one seemed to be doing his paint apprenticeship. doing what we do when we started, We have put five or six people and Kombi owners were coming out of through their apprenticeships over the woodwork telling us how pleased the years. I am pretty passionate about they were we were here. that - I got my opportunity when I was 17 and if I had not had that opportunity Did it surprise you that no one seemed to be I wouldn’t be here now. I am proud of offering the same service? what we have done in that area. NPD: It surprised me that no one seemed What is the secret to your success and to be doing it even poorly. Perhaps what does the future hold? they didn't think the business was out there. However, there was a layer of NPD: To be honest, I don’t look too far people, Kombi owners, who wanted ahead. I’m very lucky in that I am doing this service and just couldn’t buy it, exactly what I choose to do. And that no matter how much money they had. goes for everyone who works here. We offered full, ground-up restoration We have a fabulous product but to a show-winning standard and the we are always looking at new and desire from Kombi owners for that innovative ways that could make the service was out there. jobs better. We are evolving all the time, we never get complacent and are What is the rarest Kombi on which you constantly looking to improve.
have worked?
NPD: We've worked on Samba models and some early ‘50s vans, and there are things about those vans that make them special. We have, for example, a 1959 model that, rather than indicators, has little arms like semaphores that flick out. It’s great. The most sought-after models are split-screen Sambas built from the late 1950s to 1967. One sold through Shannon’s in 2015 for $202,000! While not everyone’s kombi is worth that much, there’s no doubt that, thanks to that sale, overnight everyone’s kombi was worth about $20,000 more!
What do you do with your spare time, if you have any? NPD: I am not a work freak. Monday to Friday, 8am till 4pm is enough for anyone - everyone has a better attitude on a Monday when they’ve had a decent break. A good work/life balance is important and only having the Sunday off means you hardly feel like you’ve been away. I don’t think that is good for the soul. So we enjoy our time at home and at the weekend we go down the beach with the dogs, have a few beers and prawns and enjoy ourselves. April 2017 Motor Trader | 9
O
N MARCH 7, MTA Queensland held the inaugural Carmageddon Symposium. An event that brought together researchers, government representatives and industry stakeholders, the symposium was designed to highlight not only the innovations and developments within the automotive industry but also the opportunities that such dramatic changes will inevitably uncover. Attended by more than 70 guests, the day included demonstrations of new technology in the Carmageddon Landing Zone' and presentations from guest speakers that revealed much and covered plenty of ground. From 3D printing to Artificial Intelligence, from autonomous vehicles to the role of ANCAP, from Cooperative Intelligent Transport Systems to future training requirements and the the role of government, the breadth of topics was indicative of how deep are the changes and challenges to the automotive industry. Making clear what those challenges and opportunities are, and strengthening the industry through understanding them, is why MTA Queensland organised the event. “We have members who are about to face disruptions that will change the way business is done,” said MTA Queensland Group CEO Dr Brett Dale. “As an industry peak body, we want to lead opportunities rather than react. Changing technology should make Australia and Queensland more competitive if we remain flexible, responsive and technically engaged.” The opening address was delivered by The Honourable Leeanne Enoch MP, Minister for Innovation, Science and the Digital Economy and Minister for Small Business, who focused on the government’s determination to take advantage of the opportunities the industry’s revolution offered. 10 | Motor Trader April 2017
“There’s lots to be optimistic about,” she said. “There are huge opportunities if we understand that the technology at our fingertips can help us in the way we deliver services and products to clients, customers and citizens. “If you are ready to make the change now and take on the leadership role, then this industry can be at the forefront of huge opportunities for our economy.”
TECHNOLOGY & INTELLIGENCE Of all the technologies that have made media headlines, perhaps the most notable is autonomy and driverless cars. To call this technology 'hi-tech' is an understatement and when discussion turns to areas such as Artificial Intelligence (AI), Deep Learning and Neural Networks, it can seem like science fiction rather than science fact. Associate Professor Michael Milford from the Queensland University of Technology (QUT) explained that automation and machine intelligence had become a main focus of research and that 'intelligence' comes via vast amounts of data input into neural networks (systems modelled on the workings of the human brain) with the data and computer power combining to enable the machine to 'learn' tasks normally performed by a human. “If you have a constrained task within your business and you have enough representative data from humans who already do this process, you can create an artificial system that will do that process at least as well,” he said. Research in these areas is moving quickly, and the scramble for dominance in the sector is one in which all the major players are taking part.
Leeanne Enoch MP, Minister for Innovation, Science and the Digital Economy and Minister for Small Business
Associate Professor Michael Milford
“The question becomes not can it be done but is it worth doing?” he said. “That is why the first battleground where this is playing out is in trillion-dollar industries such as selfdriving cars, because the pay-off is so huge.” The Professor also discussed Virtual and Augmented Reality - technology that is already being utilised by companies to collaborate on design and, importantly, training - Bosch used such a system recently to help train more than 8000 service technicians on direct-injection and braking technology using the Oculus Rift device. “The technology is improving at an incredible rate and may one day have tactile feedback where people can interact physically with objects,” said Professor Milford. “You can imagine the transformative effect that will have on training.”
“. . . THE FIRST BATTLEGROUND
WHERE THIS IS PLAYING OUT IS IN TRILLION-DOLLAR INDUSTRIES SUCH AS SELF-DRIVING CARS BECAUSE THE PAY-OFF IS SO HUGE.” TECHNOLOGY & SAFETY The technology behind autonomous and 'intelligent' vehicles was also part of the presentation by Niko Limans from the Department of Transport and Main Roads (TMR). Focusing on Cooperative Intelligent Transport Systems (C-ITS) and the aim of reducing road fatalities and injuries, Mr Limans said there was a focus on engineering initiatives and disruptive technologies to help reach zero fatalities. C-ITS uses wireless communication to share data between vehicles, infrastructure and mobile devices and the benefits of these systems are expected to have a real effect on safety. The Queensland Government, as with other states and the Commonwealth, is moving ahead with projects and trials designed to test some of this technology. In Ipswich, 500 vehicles will take part in a trial of C-ITS technology in 2019, while Cooperative and Highly Automated Driving (CHAD) vehicles are to be trialled to test asset readiness, driver behaviour and vehicle performance. Safety was also the focus of the presentation from James Goodwin, CEO of ANCAP, who detailed the benefits of autonomous technology while highlighting some of the hurdles to be overcome. “There is a lot of talk about the driverless car, but we prefer to talk about autonomous driving or autonomous technology.
James Goodwin, CEO of ANCAP
This is not taking over from the driver - this is helping make you be a better driver.” A lot of this technology – such as Autonomous Emergency Braking (AEB), Lane Departure Warning (LDW), Blind Spot Monitoring (BSM) and Lane Keep Assist (LKA) – is now available and is, said Mr Goodwin, making a real difference. However, though the technology is effective, Mr Goodwin did highlight the need to improve the infrastructure that is vital in enabling it to work, and also pointed out that the ageing Australian fleet could prove a challenge. “The average age of the vehicle fleet in Australia is 10.1 years. 1 in 5 cars on Australian roads is more than 15 years old and they count for 2 in 5 fatality crashes," he said. “We want automation,” he added of ANCAP's goal. “We want to do ourselves out of a job. In the immediate future, with an old vehicle fleet and with the infrastructure we have, the technology we need to be talking about is the autonomous technology that will help you drive, and that is what we are focusing on testing and assessing so that we can have those building blocks to full automation.”
TECHNOLOGY & MANUFACTURING The developing technologies don't just revolve around connectivity and autonomy. Manufacturing too, is seeing new techniques being developed and 3D printing is fast emerging as viable tech in automotive. Established manufacturers have been using the technology for years in areas such as rapid prototyping and spare parts production and, more recently, companies have even been established that manufacture complete, or almost complete, 3D Printed cars. Tony Ho, from Brisbane-based 3D Space Labs, discussed the U.S. companies Local Motor, which produces the 3D printed LM3D Swim car, and Divergent, which manufacturers the Blade car using 3D printed metal nodes connected with carbon fibre rods connected to a flexible modular frame. Both companies work from small-scale, local manufacturing facilities known as microfactories - and as traditional automotive manufacturing moves offshore this year, 3D Printing and microfactories might be the opportunity for smaller-scale vehicle manufacturers to make their mark. "When we talk about going offshore, it doesn’t have to. Chances are it will actually return," said Mr Ho. "We are not talking about mass product – we’re talking about medium to high-end and this is where there is an opportunity for Queensland." 3D Printing has its place in the production of other areas too, such as spare parts. Audi, Daimler Trucks and others already utilitse it and, as the 3D printing technology develops, April 2017 Motor Trader | 11
Mr Ho said it could become an auto industry mainstay. "In the future, accredited service centres could simply print out the parts as they are needed," he said.
TECHNOLOGY & TRAINING As new technology emerges, the need for suitably skilled tradespeople becomes vital. If technologies such as electric motors, batteries and Lidar are the future, then automotive training clearly needs to reflect that. And just such a move is underway. This year saw the establishment of Skills Service Organisations (SSOs) that now oversee, together with Industry Reference Committees, development of training packages. Automotive will be the responsibility of PwC Skills for Australia and its Chief Executive, Sara Caplan. “We work to gather intelligence about what is happening in the automotive industry both domestically and globally and we bring this information to the Industry Reference Committees," she said. "Together, we facilitate the industry deciding where it is going and what is going to change. “There are a lot of things we talk to people about,” she added. “Whether it is autonomous vehicles, the internet of things or 3D printing of parts – all of these come into the deliberations about how we change vocational training going forward.” An example of potential new training units being considered is 'Safely Depowering Electric and Hybrid Vehicles' and this, and others, will be considered during consultations on training packages to be held this year.
GOVERNMENT SUPPORT Across the state, 414,000 businesses (97 per cent of all businesses) are small businesses that employ fewer than 20 people. Many automotive businesses fall into this 'small business' category and, encouragingly, the Queensland Government has plans and programs in place that can help businesses adapt to the industry's revolution. “Our goal is to help small business to start, grow and employ,” said Mr Tim Swinton, Executive Director of the Office of Small Business, during his presentation. Mr Swinton detailed some of the assistance available, including the Mentoring for Growth Program (in which businesses are matched with a panel of experts to tackle business issues), and grant programs including the Accelerate Small Business Grants Program and Small Business Entrepreneur Grants Program (both of which offer matchedfunding to engage mentors), and the Small Business Digital
Grants Program (which provides matched-funding to access digital technologies). The Queensland Government is also behind the Advance Queensland initiative. Its aim is to 'turn ideas into actions', attract new investment, build global partnerships and encourage businesses to start and grow in Queensland. Among the initiatives it drives, Advance Queensland runs the Hot DesQ program, designed to attract entrepreneurial talent to Queensland (see story below), and the Platform Technology Program that provides incentives that accelerate the development and deployment of highly-collaborative industry-based platform technology projects. “We, as a state government, want to play a role in that collaboration space and a lot of our programs are about how we put together people, ideas, technology, investment and business models to create new ways of doing things,” said Paul Martyn of Advance Queensland. An example of this collaboration is a project that has seen Boeing, Telstra, Queensland Gas and SMEs work to develop drones that can fly over gas wells to see if they require maintenance. It's a collaboration where technology from one sector has transferred to another - a concept Mr Martyn encouraged the automotive industry to consider. Collaboration, both inside and outside of a business, offered real opportunities, he said, acknowledging that great ideas are also likely to come from the employees within a business. “Sometimes, the biggest gains to be made are how you take ideas from outside and merge them with the ideas your people have. There is a sweet spot in the middle where the two come together and that is where the biggest opportunities are."
THE INNOVATION HUB Advance Queensland's Hot DesQ program is evidence of the importance of entrepreneurial spirit - encouraging startup businesses to Queensland is obviously a good thing, especially if those businesses grow into substantial firms. But where does a startup company, perhaps with a big idea but a small wallet, turn for help? The government plays its part, but Innovation Hubs are another source of support. These Hubs are facilities that bring together a community of like-minded people and offer access to state-of-the-art digital infrastructure as well as mentoring, coaching and networking opportunities. They are incubators for big ideas. The Fire Station 101 Innovation Hub is located in Ipswich
START-UP INNOVATORS IN THE MOTOR TRADES The Queensland Government's Hot DesQ program lead management and boosts sales attracts start-up companies worldwide and performance through an innovative provides successful applicants a base in Queensland mobile/web solution. Led by CEO and funding to grow their venture. Bruno Yukihara, C2S focuses on car “Businesses will need to embrace the changes dealerships and real estate brokers in the industry and be innovative in their approach Bruno Yukihara delivering sales leads straight to the to succeed in this new era of technology," said Dr business, instantly. Brett Dale, CEO of MTA Queensland. "The start-ups that “The future of car dealerships is changing, as well Hot DesQ have introduced to the Queensland automotive as the relationship between customers and vehicles," industry are bridging this gap.” he said. "C2S focuses on innovating that space with These start-ups include Contact2Sale (C2S) and software designed to boost car dealership sales in the most fluid, streamlined way.” OpenRevs. C2S, a Brazilian company, radically simplifies 12 | Motor Trader April 2017
OpenRevs, guided by Directors Peter Ward and Trevor Ward, aims to produce electric motorcycles as the cheapest and most environmentally-friendly option available. “OpenRevs believes in a better, cleaner world with widespread adoption of renewable energy and electric vehicle," said Peter. "We aim to produce electric motorcycles to the Queensland market as a sustainable, cost-efficient and enjoyable means of transport, as part of the electric vehicle revolution heading our way.” For more information visit: Contact2Sales – www.c2sglobal.com/ OpenRevs – www.openrevs.com/
At the Carmageddon 'Landing Zone', businesses including 3D Space Labs and Milwaukee Tools demonstrated some of the technology now available.
Tony Ho of 3D Space Labs explained how 3D printing and scanning works and presented 3D printed parts for Carmageddon attendees to examine.
and Chad Renando, its Community Manager, explained how it enabled entrepreneurship and innovation to flourish. “The role of the innovation hub is to bring together the entreprenuers, the mentors, the investors, the corporate partners, the service providers, volunteers, interns and, ideally, a connection with a university or multiple universities in the area," he said. "All these are people are incentivised for one thing - your success and making sure you can build, grow and scale your business." After just one year of operating, Fire Station 101 has more than 70 members and some notable successeses. Its approach to assisting entrepreneurs is one that is likely to become even more popular as technology evolves and the opportunities offered by that technology become clearer. And it is a model that MTA Queensland may emulate as it looks to continue its support of the automotive industry.
During his presentation, James Sturges, Chairman of AADA (Qld), considered how the relationship between dealer and customer had changed with the 'information revolution' and how, as this evolution continued, the traditional dealership model might change also.
Dr Caroline Smith, Executive Director of Jobs Queensland, detailed how important a responsive training system is as new technologies emerge into the automotive industry.
T
he inaugural Carmageddon Symposium was a great success and the feedback from both presenters and from those who attended was very positive. “The attendance and presentation topics were definitely on the mark,” said Dr Brett Dale. “And we will hold similar events that will focus on changing business models and technology that will enhance business performance and transition skills. “I would love to see MTA Queensland recognised as the most forward thinking industry body which, through our commitment to innovation and business support, is considered an incubator for business opportunities. We have great interest in setting up programs to support start-ups and transformational businesses and I will continue to work with government and academia to produce a collective agenda/ knowledge bank that will inform Queensland automotive businesses about the huge potential.”
To find out more about the Carmageddon Symposium and the presentations delivered by guest speakers, go to mtaq.com.au
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MTAQ Racing Team
MTAQ TEAM REVVED UP FOR RACING CHALLENGE T HE COUNTDOWN IS on for the debut of the MTAQ Racing Team. On May 20-21, the team’s Hyundai Excel will take its place on the track at Morgan Park Raceway to compete in the first Hyundai X3 Series Cup meeting of the year. That meeting will begin a new chapter in the long history of the Association as it takes part, for the first time in an official capacity, in the fast and furious world of motorsport. Over the past few weeks, in conjunction with team driver David Wood, the MTA Queensland has been building and prepping the racing Excel. And the car is all but finished, thanks to the hard work and enthusiasm of MTA Institute trainers; the race-day support crew of William Salmon, Gerard Field and Elliott Lemmon; and a steady stream of MTA Institute apprentices who have used the opportunity the race car presents to not only get involved
If you are a member of MTA Queensland . . .
14 | Motor Trader April 2017
in an exciting project but to sharpen their own knowledge. All that is left to complete the car is the application of decals that recognise the important input of team sponsors. When the car takes its spot on the track in May, it will become a part of a racing category that is fast becoming one of the most popular across Queensland, and the country, thanks in part to it being run under national rules as a Confederation of Australian Motor Sport (CAMS) racing class. According to Sean Beggs, Secretary of Series X3 Qld, more than 20 cars are expected on the starting grid, ensuring this season will be one of the most exciting and fiercely fought anywhere on the motorsport calendar, contested by an appealing mix of youthful and experienced talent. “This year we will be expecting between 20 to 25 competitors,” he said. “The numbers have grown over the
years as this class offers an affordable form of racing, and provides some close door-to-door action. Due to this close racing, we are attracting new young drivers that wish to learn how to circuit race, as well as seasoned drivers wishing to brush up on their race craft. It really does allow for some fantastic racing.” To celebrate the MTA Queensland’s venture into motorsport, the Association will be holding an official launch party – an event which will include an address from David Wood and major sponsors as well as the official unveiling of the car. As members of the Association, you are invited to attend the launch party and join the racing team, sponsors, MTA Institute apprentices and MTA Queensland Board members and staff. Interested? Your invitation is below! To follow MTAQ Racing Team news, go to www.mtaq.com.au/MTAQ-Racing-Team.
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MAKE: VAUXHALL MODEL: 1955 VELOX UTE ENGINE: 2.6-LITRE, 6-CYLINDER OWNER: SCOTT GIST OWNED SINCE: 2006
VAUXHALL’S BEAUT UTE V
AUXHALL, THE VENERABLE old British auto manufacturer has a long history in Australia. It was - until the PSA Group (makers of Peugeot and Citroen) acquired it in March this year – a part of General Motors for many decades and, as such, made it a close cousin of Australia’s own GM subsidiary, Holden. That relationship - and the fact that Holden was, for much of its early history, a coachbuilder rather than fully-fledged manufacturer - would see many Vauxhall models appear on Australian roads. Names such as Wyvern, Cresta, Victor and Viva will likely resonate with those who have an interest in this country’s automotive history . . . as will the name Velox. A part of the Australian automotive landscape from the late 1940s, the first Velox ( from the Latin for ‘swift’) was available as a four-door sedan or a two-door ‘tourer’. The release of an updated model in 1951 saw the Velox range expanded to include a utility version. And it is the Vauxhall Velox ute that is a bit special not only because of its age and good looks but for its relative rarity – it was only available in Australia and was discontinued in 1957. This Velox ute is owned by Scott Gist of hybrid and European premium vehicle specialist Supreme Automotive Bosch Service Centre in Brisbane. A fan of British cars since he was a lad living in Townsville and working with the family’s automotive business – also called Supreme Automotive Scott has a couple of other classics from the motherland. “In the early 90s, when I was about 14, we found a 1959 Vanguard and, because we had a bit of acreage, we used it as a run-around,” he says. “It was the Vanguard that got me into British cars. Everyone else was chasing Chevs and Cadillacs but the British cars were more affordable and less common, and I liked the idea that not everyone had a Vauxhall.”
16 | Motor Trader April 2017
A PA Cresta and a 1955 Wyvern sedan were added to the collection over the next few years and Scott became a member of the Vauxhall Owners Club. It was this membership which gave him the opportunity to buy the Velox. “I was able to find the Velox through the Club’s magazine,” he says. “And I bought it because I ljust loved the look of it. “It was owned by a gentleman in Melbourne and was in fair condition when I got it. However, It did have a bit of a dodgy paint job with a slight discoloration between the front and the tray, and the interior was pretty tired. “We transported it back to Townsville and initially had to get it running properly. It had an overheating problem so we overhauled the radiator and the cooling system, but apart from that it could be driven. “The braking system was upgraded too. It had a shocking braking system – the master cylinder sits underneath the floor pan of the car so the bleeding of them is a real nuisance. It then underwent a full, back-to-bare-metal restoration in 2012/13 when we also redid the trim, seats and headliner.” For Scott, keeping the Velox, in fact any of the cars he owns, as close to their original condition, is important. “I think they should be kept original,” he says. “I like to keep them as they were when they rolled out of the factory so that people can see what cars were like back then.” To keep them in that condition means having access to spare parts and keeping to a maintenance routine that
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includes getting it out on the road from time to time. “I drive it once every few weeks,” says Scott. “That is important because, if you don’t, seals dry up, you get oil leaks, the pistons can seize up – it’s better to keep it running. “Once I put new tyres on her, she handled nicely. There’s not a lot of legroom though – I don’t think tall people would have enjoyed driving it too much. As for parts, fortunately, should I need them, the Vauxhall Club is a good source. Also, I have the Wyvern back in Townsville that is too far gone to be running but which I can use for items for the Velox.” The Velox is kept at the Supreme Automotive shop and Scott uses it not just for the joy of driving and owning a classic car but also as a marketing, and even an educational, tool. “It is a bit of talking point for customers when they come in,” says Scott. “We have images of it on our website too, which we uploaded partly to show the difference between cars we see today and those of the past. In 1955, I’m sure people looked in wonder at the technology in cars. Compare them to what we deal with today and you can see how simple they were. “In 20 years, we may be moving around in electric autonomous cars made of some incredibly light material. To still be able to see a big hunk of metal like the Velox will be pretty unusual! Scott is clearly passionate about the classic cars he owns.
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And he is not alone – his family in Townsville has a few tucked away too. “I have a 1982 New York Checker Cab,” he says. “It was the last production year of the Checker Cabs and we bought it as an investment. We also have a 1941 Chev, an HQ Sedan, and an HG Holden. “My family also has two Leyland P76 sedans. One of those was restored to look like the Black & White taxi my father used to run in Townsville, while the other was bought my brother Shane and was actually a car my father had sold brand new when he was a salesman for AP Eagers.” So, there are plenty of classic vehicles knocking around the Gist family workshops. But Scott always has his eyes open for another opportunity and he is searching for something in particular right now. “My dad once had an Atlantic Blue HZ Premier,” he says. “I’d like to find one of those but Atlantic Blue Premiers are not common and even fewer seem to exist with a 308 rather than the 253. But I’ll keep looking.” April 2017 Motor Trader | 17
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MEMBERS MEMBERS ESSENTIALS ESSENTIALS
PAUL KULPA
PROGRAMS UNDERWAY THAT I HOPE WILL BEGIN TO SEE US PROVIDE AUTOMOTIVE EMPLOYERS GOOD CANDIDATES AND LONG-TERM EMPLOYEES.”
GENERAL MANAGER MTA INSTITUTE
Contents 19 Training GM's Professional Circle perspective 20 Professional Circle training 24 Member matters 26 Member profiles
SANDGATE WRECKERS ROSS STARKEY AUTOMOTIVE
28 Industrial relations
H
ELLO ALL AND welcome to this edition of my GM’s Perspective. If you recall, I mentioned in my last column that the MTA Institute had some new programs coming up. Well, they are here, and we are excited by the opportunities these programs will bring. You will have heard me countless times talking about potential candidates coming into the automotive industry not knowing what to expect and, likewise, employers being frustrated by their new employee not being ready for the job. Well, we have two programs underway that I hope will begin to see us provide automotive employers good candidates and long-term employees. Firstly, we have our CRASH program, aka the Collision Repair Assistance to Support Hiring apprentices. A long title but, as the name suggests, this program is to designed to support people looking for a job in the collision repair industry. It has a mix of work and life
skills that will make any successful candidate completing the course standout to any employer in the collision repair industry. Secondly, we will be offering Employability Skills Training to 15 to 24-year-olds considering a job in the automotive industry. The key objectives of the program are to provide job-ready participants through: • Upfront, realistic expectations of the work involved in the automotive industry; • Development of basic work, social and life skills; • Simulated automotive workplace training; • Industry awareness experience via employer site visits; and • Overarching support to help gain and retain potential employment opportunities. So, if you are able to offer work experience places, or need a new apprentice or employee who is job ready, contact us through auto@mtaq.com.au All the best and I hope everyone keeps busy. November 2016 Motor Trader | 19
E S S E N T I A L S
“WE HAVE TWO
M E M B E R S
Training GM's Professional Circle perspective
E S S E N T I A L S M E M B E R S
MTAI TRAINER PROFILE
Professional Circle training
MTAQ LAUNCHES NEW PRE-APPRENTICESHIP TRAINING PROGRAM T CLICK TO VISIT THE WEBSITE
HE MTA QUEENSLAND has launched a new program designed to impart the basic skills and knowledge required to work in the Collision Repair and Refinishing industry. Specifically designed for school leavers, job seekers or those looking for a change in career, the program, called Collision Repair Assistance to Support Hiring Apprentices, or CRASH, is funded and supported by the Queensland Government under the Industry Pre-Apprenticeship Program and its first intake of students began training in the inaugural 10week program at the end of March. Delivered by MTA Institute trainers
ROGER WEST
at the MTA Queensland’s state-ofthe-art training centre, the program offers participants the opportunity to gain a Certificate II in Automotive Body Repair Technology and includes modules on a variety of subjects that will prepare students for the workplace. The full-time program includes a first week learning employability skills followed by the six-week Certificate II component. A week of further training in areas such as budgeting and first aid will be followed by two weeks of work experience with MTA Queensland member businesses. By the end of the program, participants will be ready to take on an apprenticeship within the Collision Repair and Refinishing
industry – a result that is the ultimate aim of the program. CLICK TO CLICK TO GO The development of the CRASH VISIT BISSELL’S DIRECTcame TO about as a directPAINT & PANEL program THEofPAGE result industry feedback. The WEBSITE Collision Repair and Refinishing sectors are listed on the Australian Government’s Skills Shortage List - an acknowledgment that employers have difficulty filling vacancies. Further, as with other industries, the retention CLICK TO rate apprentices is low, with as CLICK TO VISITofSANDGATE VISIT THE ROSS many as 50 per cent dropping out WRECKERS’ STARKEY during the apprenticeship period. WEBSITE WEBSITE The need, therefore, to prepare potential employees for the industry was clear and the CRASH program delivers not only basic training within
What is your background in the automotive industry?
to be able to keep my knowledge up to speed within the industry through visits to the students in the workshops and the work that is being carried out in those workshops.
I have been in the automotive industry since I started my apprenticeship back when the Ford XY Falcons were new, and even managed to carry out some pre-deliveries and road tests on the famous XY GTHO’s. I have continued within the trade, first on the floor then moving on to leading hand, workshop foreman, service manager. I started training other tech’s and apprentices in-house before finally choosing to become a full-time trainer when the position arose.
When did you become a trainer for MTA Institute? 2005.
What is your specialised area? I don’t think that I would call myself a ‘specialist’. However, I do have a leaning towards the electrical systems and electronics used within the motor industry. Today’s apprentice is going to have to gain that basic knowledge to be able to cope with the vehicles of the not-too-distant future. 20 | Motor Trader April 2017
CLICK TO VISIT MTAI.EDU.AU & LEARN MORE
What geographical area do you service? Brisbane North.
What is the most satisfying aspect of your role as a trainer for MTA Institute ? Firstly, to be able to pass on my knowledge to people in the industry and to see that knowledge being used in the diagnosing and repairing of motor vehicles. Secondly,
What do you believe is the most important aspect of training? There should be no secrets and a trainer should be prepared to pass on as much knowledge as they can.
Why should someone consider a career in the automotive industry? This industry is so diverse that once you gain knowledge and experience in the area you want, it can lead to many other areas within the industry.
What is the best piece of advice you can give to an apprentice starting out in the industry? Don’t be afraid to ask - there are no dumb questions.
When you’re not training, what do you like to do? I think it’s called ‘me time’ and sailing.
added Mr Kulpa. “And that is fine too. The program is designed to provide industry with those people who are truly keen on the sector as a career. If it also helps participants to realise that their true calling lies elsewhere, that is no bad thing.” The inaugural 20-place CRASH program will finish in May and participants from across southeast Queensland – from the Gold Coast to Toowoomba to Hervey Bay - have enrolled to take part. It is being overseen by Marcello Riotto,
“FEEDBACK FROM
INDUSTRY WAS THAT THEY NEEDED PEOPLE WHO COULD BE PRODUCTIVE, INNOVATIVE, BE EXCITED ABOUT LEARNING THE TRADE AND BE PASSIONATE ABOUT THE WORK.” Operations Manager at MTA Institute who, along with experienced trainers Warren Archer and Alfio Rotolone, will deliver various parts of the program. “It is an incredible opportunity,” he said, “For those interested in working in the automotive industry, completing the CRASH Program will give them hands-on guided experience and they’ll come away with real skills and knowledge that will be tremendously beneficial in securing a future apprenticeship and career.” Future CRASH programs are planned. For further information on the CRASH program, visit mtai.edu.au or call (07) 3237 8777.
April 2017 Motor Trader | 21
E S S E N T I A L S
the sector but also in ancillary areas that ready them for employment. “The Collision Repair and Refinishing industry is trying to attract the right people but there is an issue there and they need people with skills that have been acquired before beginning an apprenticeship” said Paul Kulpa, General Manager of the MTA Institute. “Feedback from industry was that they needed people who could be productive, innovative, be excited about learning the trade and be passionate about the work. “Finding and training those people to take on apprenticeships is an important part of what MTA Queensland must do to support this industry sector and that is what the CRASH program is designed to deliver. “So, participants will go through training that, in the first week, will focus on employability skills such as motivation, then the Cert II component, then two weeks of additional training in areas such as defensive driving training, First Aid training and also financial management training with MTAA Super who will offer advice on budgeting and saving. Participants will also receive guidance on creating a CV, interview techniques and personal presentation – all attributes that are essential in being able to gain employment. “Two weeks of work experience follow which will include correcting dints in panels and working in the paint booth, amongst other things. This will really give them the practical exposure to a real-world working shop before they head into the workplace proper. “Of course, it may well be that participants may realise during the program that the collision repair and refinishing industry is not for them,”
ELLIOTT LEMMON IS the MTA Queensland Apprentice of the Month for March. The 19-year-old, third-year light Elliott with MTAI trainer James Dixon vehicle apprentice has been working at British vehicle specialist Greg Tunstall Mechanical in Ormiston since taking up his apprenticeship three years ago. And he has impressed with his passion and dedication both to the job and to his training. “I’ve worked with Elliott since he signed-up for his apprenticeship and he is an excellent student,” said MTA Institute trainer James Dixon. “His attention to details is brilliant, he lives and breathes cars and is always willing to try something new. He will always put himself forward to help his peers in the workshop and faces new challenges head-on every day.” Living and breathing cars is a spot-on description of Elliott. He has been tinkering with things mechanical since he was a child and that passion for anything on wheels has seen him experiment with his own cars, race karts, and become a member of the MTAQ Racing Team Support Crew – a position he is pleased to have secured. “Career-wise I am interested in racing,” he said. “That’s why the MTAQ Racing Team project leapt out at me. Being a part of the support crew is a great extension to my apprenticeship and I can take what I learn during the experience back to the workshop.” At work, Elliott helps to maintain and repair a mix of British cars. At home he works on his Holden collection. “We work on vehicles such as Land Rovers, MG's Jags and old Triumphs at the workshop,” he said. “I get to do a bit of everything and I like every aspect of both the job and the training. This is what I want to do, so doing the bookwork and the practical work is something I really enjoy.” “I do have a few Holden’s at home, that’s true” he added. “I have a VZ SS, a WB and a VX. I have a VR manual ute too, and on that one I built the motor and lowered the suspension. It is as quick as I can get it without turbo-charging it! I love playing on them in my own time. It’s a bit of an addiction!” There is little doubt Elliott has a fine career ahead of him though rather than own a business, it is a career in motorsport that tempts him most. “I would like to go abroad, have that experience, and see and enjoy the different ways people race overseas,” he said. “I’d like to see how they race in Europe and Japan and, at some point in the future, work on a race team. That would be great.”
M E M B E R S
APPRENTICE OF THE MONTH - MARCH
E S S E N T I A L S M E M B E R S
OFT TO FOCUS ON CAR WARRANTIES AND CONSUMER GUARANTEES IN 2017-18 CLICK TO VISIT THE WEBSITE
CLICK TO GO DIRECT TO THE PAGE
CLICK TO VISIT SANDGATE WRECKERS’ WEBSITE
By Brian Bauer, Executive Director, Office of Fair Trading
T
HE OFFICE OF Fair Trading (OFT) is reminding motor dealers of their legal obligations under the Australian Consumer Law (ACL), particularly around honouring consumer guarantees on faulty vehicles. In February 2017, the chairman of the Australian Competition and Consumer Commission (ACCC) Rod Simms addressed the Committee for Economic Development of Australia’s (CEDA) Sydney conference and stressed the importance of supporting enforcement action against anti-competitive and anti-consumer behaviour. The OFT welcomes the ACCC’s comments, and shares the view that more regulatory attention on the consumer guarantee practices of motor dealers and manufacturers is
22 | Motor Trader April 2017
CLICK TO VISIT MTAI.EDU.AU & LEARN MORE
CLICK TO VISIT MTAQ.COM.AU & LEARN MORE
clearly be considered major failures under CLICK TO consumer the ACL’s VISIT THE provisions. guarantee KOMBI SHOP The OFT is also WEBSITE concerned about CLICK TO CLICK TO reports of consumers VISIT THE VISIT BISSELL’S being asked to sign SUPREME PAINT & PANEL AUTOMOTIVE’S non-disclosure WEBSITE WEBSITE agreements simply to access their CLICK TOrights. consumer SinceTHE the WATCH introduction VIDEO of the ACL, the OFT has taken CLICK TO CLICK TO an educational VISIT THE VISIT THE ROSS OFT stance, helping STARKEY WEBSITE key stakeholders WEBSITE within the motor dealer industry understand their responsibilities to consumers. This approach provided an SINCE THE opportunity for the motor industry to confirm their commitment to doing INTRODUCTION OF the right thing by consumers. Despite THE ACL, THE OFT HAS this, complaints about the motor TAKEN AN EDUCATIONAL vehicle industry have remained in the top five industries complained about STANCE, HELPING KEY in each of the last five years. STAKEHOLDERS WITHIN The OFT will continue to monitor THE MOTOR DEALER both dealers and manufacturers, and closely examine any allegations of INDUSTRY UNDERSTAND misrepresenting consumer guarantee THEIR RESPONSIBILITIES rights or misrepresenting consumers’ TO CONSUMERS. rights through non-disclosure agreements. A multitude of resources exist for becoming warranted. motor dealers and manufacturers Through consumer complaints, the to give practical guidance on ACL OFT is aware of the growing concern compliance, including a guide to regarding faulty cars (both new and consumer guarantees. used). Consumers report having difficulty enforcing their consumer To access these resources, or for more guarantee rights under the ACL information about the motor industry, visit and being forced to accept multiple www.qld.gov.au/fairtrading or call 13 QGOV attempts to repair vehicles that would (13 74 68).
MTA QUEENSLAND HIGHLIGHTS THE IMPORTANCE OF AMBRA GRADING A USTRALIAN MOTOR BODY Repairers Association (AMBRA) National Shop Grading Process outlines the minimum standard that a business must satisfy to be accredited in one of the five categories of the shop grading program. AMBRA Grading gives a clear direction to the industry on the levels of achievement required in Work Health Safety, Environmental, Training and Equipment. MTA Queensland continues to educate and encourage members to consider the importance of having nationally recognised AMBRA Grading.
“AMBRA grading is designed with the industry in mind and further developed for individual business requirements,” said Ms Kellie Dewar, Deputy CEO and General Manager of Member Services of MTA Queensland. “The AMBRA Grading system considers the interests of Australian consumers in the automotive industry and links to our Professional Circle as the benchmark for professionalism.” With the ability to apply for AMBRA accreditation directly through MTA Queensland, the program is designed to suit the majority of automotive businesses’ operating requirements. “In accordance with required laws and regulations, AMBRA provides a clear direction on levels of achievement required to receive the accreditation that suits their business,” said Mr Jeff Williams, Chairman of the AMBRA. Once accredited, businesses will be provided with signage, a certificate detailing the level of accreditation and a listing on MTA Queensland’s website as a nationally recognised AMBRA accredited facility. For more information visit: www.ambra.org.au/shop-grading
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E S S E N T I A L S M E M B E R S
Member matters
CLICK TO GO DIRECT TO THE PAGE
CLICK TO VISIT BISSELL’S PAINT & PANEL WEBSITE
CLICK TO VISIT SANDGATE WRECKERS’ WEBSITE
CLICK TO VISIT THE ROSS STARKEY WEBSITE
CLICK TO VISIT THE SUPREME AUTOMOTIVE’S WEBSITE
CLICK TO VISIT THE OFT WEBSITE
CUTTING-EDGE FACILITY AND FOCUS ON EFFICIENCY KEY TO BISSELL’S SUCCESS “ I N A PERFECT world, a business owner would likely want to start from scratch when it comes to a location from which to run their enterprise. A purpose-built facility is, after all, just that – a location designed, constructed and equipped with the sole objective of enabling the efficient and productive functioning of a business. And the efficient delivery of top-class service to customers is exactly what prompted Iain Kippen to construct the new workshop for his business, Bissell’s Paint and Panel. Located in Noosaville, Bissell’s has been a fixture on the Sunshine Coast for 30 years – its reputation for excellence ensuring its long-standing status with the community. Iain has owned the business for five years and at the end of 2016 oversaw its relocation to a state-of-the-art facility that will surely see that reputation grow stronger. Situated just a few hundred metres from its original location, the new Bissell’s workshop is a testament to its owner’s desire to continue to service the community while ensuring the business is perfectly placed to face the
24 | Motor Trader April 2017
MOVING TO THE NEW FACILITY HAS REDUCED OUR ELECTRICITY BILL TO ALMOST ZERO, HAS SEEN OUR GAS USAGE FALL BY 80 PER CENT, AND OUR PRODUCTIVITY INCREASE BY 40 PER CENT . . . ” challenges of an evolving industry. ‘Efficiency’ is the key word for Iain when discussing the new Bissell’s, and the importance of the word is crystal clear. From the two drive-thru Junaire booths to the aluminium repair bay; from the dual work bays for his tradesmen to the new Car-O-Liner equipment; from the top-of-the-line welders to the 30kw solar panel system that powers the shop; from the innovative design of the workflow to the focus on staff development and the embracing of methodologies such as the Toyota 5S system, everything is geared to the efficient delivery of
first-class service. And the investment is paying off in a major way. The solar system, coupled with energy-efficient booths and the new workflow system which sees vehicles follow a clear, designated path through the shop, has seen remarkable cost savings and increases in productivity. “Moving to the new facility has reduced our electricity bill to almost zero, has seen our gas usage fall by 80 per cent, and our productivity increase by 40 per cent, all with the same outgoings and number of staff as at the old shop,” said Iain. “Once a vehicle comes to us, it never goes into reverse – everything flows in one direction – and the new shop has given us the space to allow our technicians to each have their own work space, which in itself is efficient as they don’t have to move around. They have two bays each and in that space they have their computers, their tools, their extraction systems – everything they need to do the job. “The old shop was extremely good but to get to the standard I wanted – and to the standard expected of
M E M B E R S
The new Bissell's Paint & Panel facility, designed by owner Iain Kippen, is a state-of-the-art shop that even includes a mezzanine floor for Iain's collection of classic cars and a lounge area.
E S S E N T I A L S
Iain Kippen
insurance companies who drive much of this industry and from where 95 per cent of our business comes – we had to look at a new shop. “I designed this new facility with input from industry experts and my aim was, and is, to reduce the time a vehicle is here and reduce average repair costs while keeping the very high standards of service.” While the new building, the new equipment and the clever workflow design are all vital contributing factors, it’s not just these physical components that contribute to Bissell’s continuing success – Iain’s business philosophy also plays its part. The London-born entrepreneur carved out a successful business career in financial services, real estate and construction in the UK before moving to Australia in 2001 and while his experience of the automotive industry is limited to being an avid car collector (he owns a Rover P4, an Aston Martin, an AC Cobra and a Shelby Mustang amongst other classics) the philosophy of efficiency that made his previous ventures successful are applicable to any business. Staff development and the booking of jobs are two areas Iain highlighted as vital. “Bringing vehicles in at the right time and making the most of your staff ’s time is important,” he said. “Say you do 50 cars a week. You might book in 20 on the Monday, 15 on the Tuesday etc., but perhaps 10 per day would be better. There needs to be steady
“I DESIGNED THIS
NEW FACILITY WITH INPUT FROM INDUSTRY EXPERTS AND MY AIM WAS, AND IS, TO REDUCE THE TIME A VEHICLE IS HERE AND REDUCE AVERAGE REPAIR COSTS WHILE KEEPING THE VERY HIGH STANDARDS OF SERVICE.” workflow through the shop so how do you then break that down further? You don’t want all the quick jobs booked in on one day and the longer jobs booked in on another – a mix across the week is better. It is the spread of work that makes things more efficient and offers the optimum productivity. “You can build the building, but the processes you put in place are just as important,” he added. “Take staff development. We have 18 staff and have a dedicated training room here in which we have sessions every Thursday night. We get the panel team together one week, paint the next, management and administration the next and then the whole team. We discuss where we are, where we want to be and what we need to do to get there and arrange development accordingly. “We are developing a standard
operating procedure in partnership with PPG, our paint supplier, which shows how things should run down to every single product and process, and PPG and Car-O-Liner come up regularly to hold training sessions. “This type of staff development keeps us up to date with new technologies that are coming through, and keeping an eye on the evolution of the industry is part of the job. "Staff are a very important part of any business and no more so than the panel industry. I believe that, here at Bissell’s, we have the best team possible - a qualified, dedicated highly-skilled bunch of guys that work together as a team." The new Bissell’s Paint and Panel has been a roaring success – so much so that workshop owners with an eye on the future have come from across the country to visit and view the new facility and see what initiatives Iain and his team have established. For Iain, that future required they make the investment in the new shop. “I think we had to do this,” he said. “But this is not all about making money and driving as much money as you can out of each job. This is about delivering the best quality as efficiently as possible while still retaining a good profit. “You can’t rely just on the insurance companies and other outside forces for your profit, you have to look at what you can control, about what you can make more efficient. That’s the only way forward.” April 2017 Motor Trader | 25
Member profiles
CLICK TO VISIT SANDGATE WRECKERS’ WEBSITE
CLICK TO VISIT THE SUPREME AUTOMOTIVE’S WEBSITE
CLICK TO VISIT BISSELL’S PAINT & PANEL WEBSITE
CLICK TO
CLICK TO Queensland members and business VISIT THE VISIT THE ROSS owners, and the industrial relationsOFT STARKEY information. WEBSITE WEBSITE
What has been your proudest business achievement to date?
M E M B E R S
E S S E N T I A L S
CLICK TO GO DIRECT TO THE PAGE
Winning the Frank Nicastri Award for Australia’s Environmentally Aware recyclers in 1995.
What is the best thing about working in your industry?
SANDGATE WRECKERS
CLICK TO VISIT THE WEBSITE
CLICK TO VISIT MTAI.EDU.AU & LEARN MORE
There’s a different challenge every day. CLICK TO
What is the best piece of business advice VISIT MTAQ.COM.AU you have ever given or been given? & LEARN MORE
Keep business overheads to a minimum.
CLICK TO
Location: Sandgate Type of business: Motor Vehicle Recyclers Number of employees: 6
How did you hear about the Motor Trades Association of Queensland? (MTAQ) CLICK TO
CLICK TO GO VISIT BISSELL’S Through DIRECT TO industry colleagues. PAINT & PANEL THE WEBSITE HowPAGE has being an MTAQ member
Trading since: 1985
benefited your business?
MTAQ member since: 1985
Keeping in contact with other MTA
CLICK TO VISIT SANDGATE WRECKERS’ WEBSITE
CLICK TO VISIT THE ROSS STARKEY WEBSITE
What would you say to someoneVISIT THE thinking about joining MTAQ? KOMBI SHOP WEBSITE
TO up to date with Join up CLICK to keep VISIT THE and to receive industry issues SUPREME industry support. AUTOMOTIVE’S WEBSITE
CLICK TO WATCH THE VIDEO CLICK TO of industry The availability VISIT THE information. OFT
What hasWEBSITE been your proudest business achievement to date? Establishing vehicle brands in Queensland.
What is the best thing about working in your industry? Every day is different - there is constant change, and the business relationships we have established over time.
What is the best piece of business advice you have ever given or been given?
ROSS STARKEY AUTOMOTIVE Location: Kippa Ring Type of business: Motor Dealer Number of employees: 12 Trading since: 1972 MTAQ member since: 1972
26 | Motor Trader April 2017
Never say ‘no’.
How did you hear about the Motor Trades Association of Queensland? (MTAQ) From contact with MTA Queensland staff.
How has being an MTAQ member benefited your business?
What would you say to someone thinking about joining MTAQ? They are always there to help you.
The MTAQ’s chosen firm MTAQ’s chosen firm for the automotive industry, for automotive industry providing complimentary complimentary legal legal advice
advice
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MTAQ’s chosen firm
Representing the legal interests of Queensland’s automotive industry for
Our team’s legal expertise includes: • Motor Trades licensing and regulatory compliance;
Salary sacrifice into superannuation
T
M E M B E R S
E S S E N T I A L S
Industrial relations
TED KOWALSKI INDUSTRIAL RELATIONS MANAGER
CLICK TO VISIT MTAI.EDU.AU & LEARN MORE
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CLICK TO VISIT THE SUPREME AUTOMOTIVE’S WEBSITE
CLICK TO VISIT THE ROSS STARKEY WEBSITE
CLICK TO VISIT THE OFT WEBSITE
AXATION LEGISLATION ALLOWS employees to salary sacrifice part of their remuneration into superannuation. There are significant benefits for the employee for doing so, and these include building up their retirement “nest egg” and reducing tax payable on earnings. An example will help to show the possible savings; Employee earning a gross of $1000 per week and paying $183 per week in tax decides to salary sacrifice $50 per week into superannuation. This reduces the amount on which he will pay PAYG tax to $950 per week and will result in his paying $165 per week in tax – a reduction of $18. The $50 that goes into his super fund will be taxed at 15% - meaning he will pay $7.50 in tax on it and still CLICK TO be left better off overall by VISIT $11.50 THEper week. KOMBI ThisSHOP sort of arrangement ought WEBSITE positive support from to receive employers as it is at no cost to the business and generates significant goodwill with the employee. While there is no specific legislation that dictates CLICKhow TO the business should treat the salary sacrifice amount, it would WATCH THE be counter-productive for the business VIDEO to regard the salary sacrifice figure as part of its 9.5% superannuation guarantee amount. Ideally, the business ought to continue to pay its required 9.5% on the full $1000 per
“THIS SORT OF
ARRANGEMENT OUGHT TO RECEIVE POSITIVE SUPPORT FROM EMPLOYERS AS IT IS AT NO COST TO THE BUSINESS AND GENERATES SIGNIFICANT GOODWILL WITH THE EMPLOYEE.”
week, as set out in the example above, and continue to pay for annual leave and sick leave accruals at the full pre-salary-sacrifice amount. Some limitations; • Maximum amount, from 1/7/17, that an employee can contribute into superannuation through payroll will be $25,000 - regardless of age. Note: this is the sum of the employer’s 9.5% contribution and any salary sacrifice amount. • Salary sacrifice amounts can only come from future earnings ie., only from payments that will be earned from the start of the written salary sacrifice arrangement. • The employee cannot salary sacrifice into super all, or part, of any termination pay.
MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name
Principal/s
Address
Division
BRN Mechanical
Brett Nipperess
79 Durundur Street, WOODFORD Q 4514
brett@brnmech.com
AED
D & R Smash Repairs
Robert Bouverie
7 Lochlarney Street, BEENLEIGH Q 4207
drsmashrepairs@bigpond.com
NACA
Firepower Customs & Classics
Shane Gilchrist
27 Neumann Road, CAPALABA Q 4157
shanegilchrist@hotmail.com AED
AED
Gatton Auto Electrical
Col Mear
37 Western Drive, GATTON Q 4343
gattonautoelectrical@yahoo.com.au AED
AED
Kingaroy Body Works
Annette Springer
8 Kingaroy Street, KINGAROY Q 4610
Kbw1@bigpond.com
NACA
Kiwi French Automotive Repairs
Brett Howard
3 Monte Street, SLACKS CREEK Q 4127
kiwifrench@optusnet.com.au
AED
Mechanics @ Work
Calvin Moodley
15 Jasmine Crescent, SHAILER PARK Q 4128
calvinmoodleyac@gmail.com AED
AED
Newmarket Car Care
Mark Beamiss
3/30 Bishop Street, KELVIN GROVE Q 4059
service@newmarket-carcare.com.au AED
AED
Pialba Auto Electrics
Linda Heron
75 Main Street, PIALBA Q 4655
admin@pialbaautoelectrics.com.au AED
AED
Premium Mechanical Services QLD
Dean Watt
18 Araluen Place, CARINDALE Q 4152
Premium.mechanic@gmail.com AED
AED
Sunshine Coast Roadworthy Inspection Centre
Geoff Webb
6/24 Hoopers road, KUNDA PARK Q 4556
admin@roadworthys.com.au AED
AED
28 | Motor Trader April 2017
Investment matters
MARKET WRAP
T
HE MONTH OF February was another strong month for equity markets. This was despite ‘Trumpflation’ appearing to take a breather as President Trump's economic program came under increased scrutiny. Equity markets rallied to new highs, even as bond yields generally fell back. Earnings season in the US was largely positive, although overshadowed by the political backdrop. US equities were the best performing major market, with the Dow Jones Industrial Average Index closing on all-time record highs for 12 consecutive days. The Japanese market was the worst performing major market. Reporting season was the dominant driver for the Australian market. Overall, the reporting season was reasonably balanced. Underlying themes were steady revenue growth, solid cost control and conservative outlook statements. The S&P/ASX 200 Accumulation Index closed up 2.25%. The market has enjoyed a good run since the Brexit pullback in mid-2016. While a pullback remains a constant possibility and, the longer the market runs, it is difficult to paint a picture of a market frothing with optimism. Many commentators and investors have remained cautious with few true believers in the rally. Concerns have centred on valuations, Trump, global growth, debt levels and other issues. With political uncertainty remaining elevated and US interest rates rising, we continue to believe that earnings growth will be the main driver of market growth rather than a Price to Earnings multiple (PE) expansion.
“OVERALL, THE
REPORTING SEASON WAS REASONABLY BALANCED. UNDERLYING THEMES WERE STEADY REVENUE GROWTH, SOLID COST CONTROL AND CONSERVATIVE OUTLOOK STATEMENTS. THE S&P/ASX 200 ACCUMULATION INDEX CLOSED UP 2.25%.” In this respect, recent economic developments have been favourable, which is driving an improvement in global earnings revisions. Typically an improvement in the outlook for earnings is a critical driver of share price performance. As the earnings outlook has improved, we have seen a strong bounce in the share prices of cyclically exposed stocks. We are also noticing an improvement in earnings in the domestic market. After five years
where earnings expectations retreated such that there was no growth, 2017 has shown significant improvement. This has been led by resources. As these companies make more profit, then the income effect should begin to ripple through the economy. The result of the improved earnings is that despite a strong move in markets, the PE has actually fallen a little and valuations appear a little healthier. High PE stocks have pulled back (and look less expensive than they did mid-way through last year) and cyclical stocks are enjoying a pickup in earnings, which is at least partially justifying the stock moves. While geopolitical risks remain elevated and markets have enjoyed an extended run, a pullback will remain a possibility. However the improvement in earnings and the economy provides much better support for the market as a whole. 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.
April 2017 Motor Trader | 29
Concept corner
Mercedes-AMG GT Concept
MERCEDES-AMG HYBRID HERO T
HIS IS THE Mercedes-AMG GT Concept, revealed at last month’s Geneva Motor Show. It’s a spectacular machine – a hybrid monster powered by a combination of a 4.0-litre V8 bi-turbo petrol engine and high-performance electric motor. And that hybrid powertrain certainly delivers the goods, with Mercedes-AMG claiming output of 600kW (800hp) and a lightning bolt 0-100km/h time of less than three seconds. Now that is swift. While clearly an AMG, the exterior design of the concept is tweaked, with slim main headlamps and side air grills at the front, a deeply ridged bonnet
30 | Motor Trader April 2017
that reaches to the wheel arches and, at the back, a wide carbon-fibre diffuser curved downwards at the sides and a central tailpipe trim reminiscent of the Mercedes-AMG GT R. Mercedes says it used its knowledge and experience of Formula One to develop the concept and adds that the energy storage unit is more powerful than conventional hybrid batteries while also being more compact and lighter – part of the AMG Lightweight Performance Strategy. The system is scalable upwards too, so that the performance and capacity of the battery can be adjusted to meet specific requirements of customers
of certain markets. Three operating modes can be preselected via the electric drive unit: the AMG GT Concept either drives purely electrically or only with the combustion engine or it optimally combines both drive sources with one another as a hybrid. However it works, the Concept is a true sports car. It’s not all that long ago that a hybrid was viewed as something of a hippies’ car – excellent for the environment and your fuel bill, but hardly something you can use to scare a Lambo driver when you pull up next to them at the traffic lights. Not anymore.
CLICK DIREC TO GO THE P T TO AGE
CK TO NDGA T ERS’ E TE
MTAI. T & LEA EDU.AU RN M ORE
CL VISIT ICK TO PAINT BISSELL’S & WEBS PANEL ITE
CL VISIT ICK TO TH STARKE ROSS WEBS EY ITE
CLICK T VISIT O MTAQ & LEA .COM.AU RN M ORE
CLICK VISIT TO SUPR THE AUTO EME MO WEBS TIVE’S ITE
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CLICK VISIT TO KOMB THE I WEBS SHOP ITE
CLICK WATC TO H THE VIDEO
April 2017 Motor Trader | 31
Industry insight
UPSIDE OF A DOWNTURN I F YOU CAN ‘keep your cool’ when all around is panic and mayhem you could set up your business for not just survival, but greater profit and cashflow when things improve. When economies are heading for tough times, money is tight and many business sales fall. This is not good news for many small to medium enterprises but it can present a chance to take stock and even get the ‘edge’ over competitors who don’t treat the situation as an opportunity. Business owners need to show leadership and retain the confidence of staff and other stakeholders. Staff morale can be extremely sensitive in tough times, so it’s important to focus on managing the business as well as possible and be honest with staff. Good staff members can be your best ally in troubled times - if you trust them and get their help in decision making. SMEs often have an advantage over larger businesses in that they can act more quickly and decisively. Larger businesses often have office politics and various departments trying to protect their own ‘turf’, whereas SMEs are more ‘down to earth’. Having said this though, it can be detrimental to employ ‘slash and burn’ tactics to survive a downturn. By ‘slash and burn’ tactics I mean indiscriminately cutting costs without really thinking about it strategically and how this might impact on the future of the business. The best place to begin preparing for a downturn is to work towards where you want to be when things pick up again. Ask yourself these questions: • How do you want to be running your business? e.g. in the traditional way you have in the past, or in some other way, perhaps taking advantage of technology or the changing market. • Is it the right ‘business model’ i.e. are there better ways to structure the business? • What type of customers do you want to work with? • How will you market your product or service? • How will you sell your product or service? • What resources will you need to deliver products and services and how will you deliver them? Resources includes human
32 | Motor Trader April 2017
as well as equipment. • Where will you operate your business from? • What price and cost structure will exist? • How will your business be funded? Will external funding be required or will it be self-funding? Once you have a picture of your ideal business you can begin to look at the cost of running such a business. A great place to start is with a serious review of your Profit and Loss Statement for a prior period. When times are good most business owners spend little time worrying about every cent that gets spent. When sales start to fall though, this is the very best place to start. Begin by looking at direct costs e.g. cost of products for sale and labour costs. Are their alternatives or better methods of delivering your product or service? How are other businesses doing it? Perhaps do some research on the internet to see how overseas businesses are doing things.
HOW WE SAVED $250,000 PER ANNUM Next, work your way through every line item on the Profit and Loss Statement. Some time put aside to focus on this issue can be some of the most profitable time you will spend in your business. It may seem tedious but when every cent is coming out of your pocket as a business owner, it’s worthwhile. I went through this exercise myself a couple of years ago and came up with approximately $250,000 per annum worth of savings. I looked at every single item and thought “How can we do this better, more efficiently and more cost effectively?”. Lots of self-
discipline is necessary and a little sensible ruthlessness as well. One terrific example is telephone and communication costs. I discovered we were paying eight different service providers. During analysis, it was discovered that there was a lot of wastage and unnecessary phone lines being paid for. Example – some investigation revealed a better and cheaper method of communication through an ‘IP’ phone system. We needed only a small amount of new equipment costing approximately $700 and the savings have been approximately $1,000 per month! We did have to shed some staff and this caused a little rockiness for a short while amongst the remaining staff. The staff soon realised though, we were serious about the future survival and profitability of the business. I know they prefer to work for a profitable business rather than one that is struggling to pay its way with unmotivated management. The important point to realise in relation to cost savings is that every dollar saved is a dollar straight onto the bottom line whereas every dollar of extra sales may only be a matter of cents onto the bottom line, because a sale carries with it direct costs and overheads. Cash-flow also needs serious attention during a downturn. When sales fall it can take a little while for the effects to be felt i.e. if a business is slow to collect payment from customers normally the effect of reduced sales may not be felt until actual payment is received. Stock needs to be more closely managed to ensure only the stock that is required is purchased. If you are purchasing stock on credit terms you could get a double whammy of reduced sales and collections at the same time as paying for stock that is taking longer to sell. All the above may sound like doomsday stuff, but if you can be realistic and take the tough decisions your business will be in a much better position when a downturn ends. Your business will also be in a much better position than competitors who haven’t properly managed the downturn or indeed survived it. When the upturn arrives, your business could be even more profitable and valuable. For more information, go to businessnumbersmadeeasy.com
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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.