Showdown in
FEB 2016
MOTOWN
THE 2016 NORTH AMERICAN INTERNATIONAL AUTO SHOW OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND
MEMBERS CLASSIC 1971 DUCATI SCRAMBLER 450 R/T
The benchmark of industry standards.
GIVE YOUR DEALERSHIP THE TOOLS TO
STAND OUT
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Contents Official Publication of the Motor Trades Association of Queensland
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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
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EDITOR Jonathan Nash 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
04 Policy/Viewpoint 06 GM's Professional Circle perspective
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08 MTA Q&A CARAFIX: PAUL AND JEAV GREAVES
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MEMBERS ESSENTIALS 18 Training GM's Professional Circle perspective 19 Professional Circle training 21 Industrial relations 24 Member matters 27 Member profiles
Feature 10 SHOWDOWN IN MOTOWN: THE 2016 NORTH AMERICAN INTERNATIONAL AUTO SHOW
30 The hit list CONCEPT CARS OF THE 2000s
16 Members Classic ITALIAN DELIGHT: 1971 DUCATI SCRAMBLER 450 R/T
33 Industry insight 10 KEY NUMBERS FOR A BETTER RESULT THIS YEAR February 2016 Motor Trader | 1
From the editor
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JONATHAN NASH EDITOR
2 | Motor Trader February 2016
ELLO AND WELCOME to the February 2016 edition of Motor Trader. In our main feature this month we take a look at the North American International Auto Show (NAIAS) Perhaps better known as the Detroit Motor Show, the event has been running in one form or another for more than 100 years and remains one of the most prestigious and popular events on the automotive industry's calendar. Nearly one million visitors attended this year, with more than 5000 journalists from across the globe joining them to report on the vast number of vehicle debuts, technological advances and announcements made by major manufacturers. From ferociously fast sports car concepts to all-electric and hybrid vehicles and technology that brings the autonomous vehicle ever closer, the Show was a chance for the industry's big guns to show off all their latest advances. Check out some of what was revealed on pages 10 to13. In our MTA Q&A feature this month we talk to Paul and Jeav Greaves from Carafix on the Gold Coast. Offering services that include caravan repairs and modifications, fit-outs and general maintenance, as well as carrying a vast range of spare parts and accessories, the company offers a complete suite of services to the caravan, motorhome and 5th Wheeler owner. In our Member's Classic feature, we catch up with Brett Mutton from Brisbane Motorcycles. A motorcycle industry veteran, and former top competitive racer, Brett has several classic bikes and cars in his collection, including the bike you can see on pages 16 and 17 - a 1971 Ducati 450 Scrambler. The Scrambler might be a rarity these days but Ducati clearly recognised its status amongst bike fans, unveiling new Scrambler models in 2015 - models that have proved to be exceptionally popular with the public. Also, in this edition we take a look at the much-maligned car from the 1970s, the Leyland P76. A car that became infamous for its reputation
as being a 'dud', the P76 story started very promisingly. Well-liked by reviewers when it first appeared, and with a host of features that marked it as a rival to the Holden, Ford and Chrysler vehicles of the time, it would take less than two years for production to end and for it to be relegated to automotive joke status. However, the P76 has a loyal fan base, including MTAQ member Graham Joseph, from Pacific Highway Auto Wreckers. Graham has five of the vehicles - three that are used as parts donors, one that is in the process of being restored and one that is fully restored - and Motor Trader met up with Graham to talk about this grand old fixture of Australia's automotive history. In Professional Circle training news, the Auto Initiation program is now being rolled out to regional areas. The nine-week program, that falls under the Community Work Skills element of the Queensland government's Skilling Queenslanders for Work initiative, offers not only automotive training (Certificate II in Automotive Vocational Placement) but also training in ‘life skills’ such as motivation, financial management and literacy, as well as work placement. To help deliver the program to regional areas, the MTAQ has invested in a Mobile Automotive Training Unit - a fully-equipped mobile 'workshop' designed to enable automotive training in any location. You can read more about the program and the new mobile unit on pages 22 and 23. As always, we will endeavour to bring you news and insight into the industry, information on the latest training opportunities, and highlight members’ interest. 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
The benchmark of industry standards. Coming soon.
Representing the benchmark of industry standards, in 2016 the Professional Circle will bring a new level of connection between the MTA Queensland, its members, the industry and the public. It will reinforce the great value of both the benefits available by being a member of MTAQ and of using the training services of the MTA Institute. And through new components such as the 10 Commitments to the Professional Circle, and the displaying of the Certified 10/10 Professional message, it will also be proof to the public that to choose to use
the services of an MTAQ member is to be guaranteed the very highest standards of service and professionalism. As we move into 2016, a focus on highlighting the quality and professionalism of MTAQ Members will be made through established and new channels – including Facebook, Twitter, YouTube and e-newsletters - and new features, products and services will flow through revitalised MTAQ and MTAI websites. The Professional Circle is an exciting development and one that will confirm
the Association’s status not only as the pre-eminent representative for the motor trades, but also as the source of expert and professional services to the public.
For more on the Professional Circle, go to www.mtaprofessionalcircle.com.au
Policy/Viewpoint I can tell you that the lucky winner of the $4,000 special prize for taking part in the survey is Garth Sampson from North Shore Tyre & Mechanical at Pacific Paradidse. Congratulations! Thank you to all members who responded to the Survey. Your input is appreciated.
ADVOCACY
KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND
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APPY NEW YEAR to each of you from the MTA Queensland staff. Our wish for you is for 2016 to bring prosperity and certainty. We had a busy end to 2015 with new initiatives that have enabled us to launch into the New Year with positive strategies to grow the Association and enhance service delivery to our members. At the annual President’s Ball last year, MTAQ President David Fraser launched the Professional Circle which promises to bring a new level of connection between the MTA Queensland, our members, the industry and the public. In the coming weeks, members will receive Professional Circle material in the form of a membership poster and the Certified 10/10 Member and 10 Commitments credentials. I encourage members to display this material prominently as it provides evidence to consumers of your commitment to, and delivery of, the highest standards of service and professionalism. To enable us to better understand members’ needs and views on issues relevant to your businesses - and the automotive value chain - we distributed a Benchmark Survey both to the current membership and to those who, for a variety of reasons, let their membership lapse. There has been a very good response, the results of which are being analysed and tabulated. In the March Viewpoint, I will be able to report to you more about the findings. 4 | Motor Trader February 2016
One area of the Professional Circle for which I have responsibility is that of advocacy. We are strong contributors to both Federal and State Government policy issues as they apply to the automotive value chain. Currently underway is a response to the Australian Government’s Discussion Paper on ‘Options to strengthen the misuse of market power’ which is an extension of the Independent Competition Policy Review (the Harper Report). The Federal Government has invited submissions from individuals, businesses and community groups on views regarding priorities for the 2016-17 Budget. It is our practice to make such a submission on behalf of members. Equally important is liaison with State agencies. As stated in other Viewpoints, senior MTA Queensland staff have ongoing professional engagements with the Office of Fair Trading and the Department of Transport.
TRAINING The MTA Institute (MTAI) is a leader in providing automotive skills training - another component of the Professional Circle. Now, as well the suite of courses on offer for those pursuing an apprenticeship or seeking to upgrade skills, we have addressed a concern of regional members who have intimated that the delivery of special courses from the Brisbanebased MTAI prevents their staff from participating due to the cost outlays. We are exploring regional expressions of interest for the provision of a Hybrid Vehicle Technology course. Courses are scheduled for June 6 in Cairns, June 7
in Townsville and June 8 in Mackay areas where skills training has been in the spotlight due to the downturn in the resources sector and loss of jobs at the Yabulu Nickel Refinery. MTAI General Manager Paul Kulpa will provide more details in due course. I urge members interested in enrolling staff in this course to contact us soon.
INDUSTRY NEWS Australian Taxation information The Australian Taxation Office (ATO) has foreshadowed a busy 2015-16. Under scrutiny are rental properties and holiday homes. Australians who rent out their holiday homes for a few weeks a year, but then try to claim bigger deductions including maintenance and mortgage interest - on their tax returns, are under the ATO's eye. Also under review are those using trusts to gain tax exemptions, and taxpayers who may have purchased boats, planes, cars, art and thoroughbred horses. Just one more piece of advice on the ATO’s compliance activities. This relates to self-managed superannuation funds. These are being examined to ensure that good administration processes are followed. Whilst the new penalty regime has been in place for the last 18 months, the cost of each fine increased from July 1, 2015, and is likely to index every three years. In our Federal pre-budget and pre-election (2013) submissions, we sought the reinstatement of the $20,000 tax break for the small business sector for purchases of business assets such as vehicles, computers and other equipment. This turned out to be the centrepiece of the 2014-15 Federal budget. Recent information provided by the ATO indicates that nearly 100,000 small enterprises had lodged instant asset write-off claims worth $418 million in the eight months that the measure has applied. The ATO is reminding small business that there are only two quarters left until SuperStream becomes mandatory on July 1,
2016. There are options to achieve this, including upgrading your current payroll software, using your super fund’s online system, using a messaging portal, or using a clearing house (such as the ATO’s free small business superannuation clearing house). An important part of SuperStream preparation is collecting your employees’ TFNs and their funds’ Unique Super Identifiers (USIs). More than a quarter of a million employers have made the change and are already enjoying (on average) a 70 per cent reduction in the time they spend on super. That equates to approximately 1.5 hours each cycle. In past Viewpoints I have referred to the ATO’s single-touch payroll scheme for small business. As an incentive, the government has announced that small businesses upgrading to ‘standard business reporting software’ will receive a tax offset worth $100 from July 2017. The scheme is meant to streamline reporting to the ATO, and the government will run a pilot among small businesses in the first half of 2017. Employers with 20 or more employees will be required to use new software from July 1, 2018. I draw members’ attention to a series of webinars on tax basics for small business. These are split into 12 topics and run for about 45 minutes. They are helpful if you want to brush up your tax knowledge, or for those starting a new business. The webinars have commenced but they continue through to March. The session co-ordinator can be contacted on 1300 661 104 or at https://www.ato.gov.au/ business/starting-your-own-business/ in-detail/videos-and-webinars/smallbusiness-webinars/?sbn
Offshore online shopping In previous Viewpoints I have written about members’ ongoing issues with the GST-free status of offshore online shopping purchases below $1000. Over the years, we have made several submissions calling for this loophole to be closed. State and federal governments had agreed to fix this long-running anomaly that sees imported goods worth less than $1000 be GST free, while local purchases attract the 10 per cent consumption tax. The Australian Government plans
rely on foreign retailers voluntarily registering for, and to collect, the GST on behalf of their Australian customers. Recent indications are that there are significant challenges in getting foreign retailers to collect the GST on sales worth less than $1000. It would seem a more robust compliance plan may be needed to bring this policy to fruition.
Small Business Queensland Small Business Week will be held again this year with activities spread across six days from May16 to May 21. It has the support of the Small Business Advisory Council and the Queensland Chamber of Commerce and Industry. The emphasis will be on creating opportunities from challenges, and on boosting innovation, productivity and employment. There are approximately 405,000 small businesses in Queensland. These account for more than 97 per cent of all businesses and employ nearly half of all private sector jobs in Queensland. Queensland small businesses with high energy needs now have access for the first time to a free dispute resolution service to settle issues with their electricity retailer. Amendments to the Energy and Water Ombudsman Act have allowed for the reach of the Energy and Water Ombudsman Queensland (EWOQ) to expand to include some 5,000 additional small businesses. The previous threshold meant only businesses using less than 100 megawatt hours of electricity per year were eligible. These changes mean that Queensland small businesses using up to 160 megawatt hours will now be able to access assistance from EWOQ. More information about the Energy and Water Ombudsman Queensland’s service is available by phoning 1800 662 837 or emailing info@ewoq.com.au
THE ECONOMY The Reserve Bank Board has its first meeting of the year on Tuesday, February 2. The expectation is that the cash rate will remain at 2 per cent, where it has been since May 2015. It would seem from recent business-related data (e.g. labour force and retail sales) that the economy has steadied to a point where business has improved certainty and
confidence. Offsetting this is that confidence is low across the world and there are several threats to the global economy. The recent World Bank Report forecasts global growth to recover at a slower pace than previously envisioned. Growth is projected to reach 2.9 per cent in 2016 compared with 2.4 per cent in 2014. The Sensis Business Index - a survey of confidence and behaviour of Australian small and medium businesses (SMBs) - indicated that, whilst the last quarter was challenging and dampened performance expectations, they remain positive about the economy and their own business prospects in 2016. Referring specifically to Queensland SMBs, the survey found that confidence continues to rise and is up by 10 points to +35 - almost three times as high as one year ago. Confident SMBs highlighted healthy sales as the main reason, but an optimistic attitude was apparent. Worried SMBs pointed to an unfavourable business, economic or industrial environment, followed by decreasing sales as the primary barriers. Last quarter, there was only improvement in employment, with sales neutral and profitability negative overall. Expectations for the current quarter are positive on the key indicators but to a lesser degree than last survey. However, for the next 12 months those expectations are quite upbeat, ranging from +13 (employment) to +30 (sales). Capital expenditure is negative (-9).
Superannuation MTAA Super, one of our respected corporate partners and the $2,000 donor for the MTA Queensland Apprentice of the Year Award, has been ranked as the top performing industry super fund for 2015. It is an excellent achievement for the motor trades’ industry fund.
New Motor Vehicles Sales New motor vehicle sales for Queensland, seasonally adjusted, took a dip in December compared with November. According to the Australian Bureau of Statistics (ABS), across the State there were 19,304 new motor vehicle sales - a decline February 2016 Motor Trader | 5
Policy/Viewpoint of 1,076 units or -5.3 per cent. Nationally, there was fall of -0.5 percent. When compared with December 2014, when there were 20,411 new motor vehicle sales, the December 2015 shows that sales slowed by 1,107 units or -5.4 percent. The respected VFacts data for December 2015 also indicate a decline with new motor vehicle sales of 19,711 - a fall of 1,142 or -5.5 percent from 20,855 units. But there is positive news to cheer about. The VFacts data indicates that, for the 2015 calendar year, Queenslanders invested in 235,674 new motor vehicles - an increase of 12,155 or +5.4 percent compared with 223,519 for 2014. Nationally, there were record new motor vehicle sales reaching 1,155,408 - an increase of 42,184 or +3.8 percent compared with the 2014 calendar year. The previous record was in 2013 when Australians bought 1,136,227 new vehicles. VFacts data indicates that SUV sales were dominant in 2015, with the vehicle
type accounting for around 35.4 per cent of the market, up from 31.7 per cent in 2014. Commentators are saying that 2016 could be the year of the small motor vehicle. Time will tell. I noted with interest that the Belgian Punch Corporation has expressed interest in building motor vehicles at Holden’s Adelaide plant. Holden is on the record as saying it is open to the idea but has not received a formal offer. The South Australian Premier Jay Weatherall is tentatively supporting the proposal as is Christopher Pyne, the Federal Minister for Industry, Innovation and Science. With Holden to close its assembly operation by the end of 2017, such an outcome would be a fairytale ending to what has been a horror story for Australian-made motor vehicles and manufacturing.
CORPORATE INFORMATION There have been staff changes at the MTAQ office. Emily Metelmann, who
many of you may know through her work within Member Services, has left the MTAQ and returned to her home city of Adelaide following the birth of son Albert. We wish Emily, her husband and baby Albert the best for their future. Our new Administration Assistant is Iesha Iselin, who joins Sara Cameron within Member Services. The MTAQ has taken a giant leap forward by appointing an online digital co-ordinator who will work with Publications Editor Jonathan Nash. Luke Thompson has joined the team and his role will be to communicate and engage with members, the industry and the public, through social media, our websites and other online avenues. For the MTAQ, it is shaping up as a year of investment in innovative practices to deliver efficient, relevant and timely services to you, our members. Every good wish for 2016. Take care and stay safe.
GM's Professional Circle perspective
A
S WE MOVE into 2016, the MTAQ will be focusing on a number of areas as part of the Professional Circle program. One very important goal for us is to establish a more energetic online presence - a presence that not only allows us more opportunities to highlight the quality and professionalism of the Association and our members but will also allow us to engage even more with you, the industry generally, and the public. This increased presence means you will be seeing a whole lot more of us online as we use channels such as Facebook, LinkedIn, Twitter and YouTube to keep the Professional Circle message of quality and professionalism growing. Our website - mtaq.com.au - will 6 | Motor Trader February 2016
also be refreshed and expanded with new features and new content and it is scheduled to go 'live' in a few weeks. You may be aware that the MTA Institute has a new website presence. The visually stimulating and engaging design of that site - mtai.edu.au - is similar to the design that the MTAQ website will take. To help us meet the challenges of this online focus, I am pleased to announce that Luke Thompson has joined our team as MTA Queensland's Online Digital Co-ordinator. An experienced online professional and an enthusiastic advocate of the digital world, Luke has worked in online marketing, content development and social media management for a number of years, including with major companies in Sydney and Singapore, and his
Luke Thompson joins the MTAQ as Online Digital Co-ordinator
experience and knowledge will be invaluable as we move forward. This will be an exciting time for the MTAQ as we explore the possibilities and opportunities that online engagement with our members, the industry and the public has to offer for all of us. It should be a lot of fun! We'll see you online!
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facility that settles into a Commonwealth Bank Business Transaction Account, Commonwealth Bank will waive the $10 monthly account fee and give you six months free terminal rental*. powered by CommBiz, you can get valuable free data from Commonwealth Bank issued credit and debit cards. Plus, for new CommBiz customers, the Bank will waive the establishment fee and give you your first two tokens free^.
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Important Information: Offers available to referrals made via MTA Queensland between 31/12/2015 and 30/06/2016. *This offer is applicable to existing and eligible new merchant facilities excluding the Albert EFTPOS device. To maintain the fee waiver, you must retain the required products contained in this offer. (Offer includes settling your merchant facility to your linked Commonwealth Bank Business Transaction Account, with a monthly account maintenance fee of currently $10.) Otherwise the offer may be withdrawn. ^Establishment fee waiver and two free tokens are available to new CommBiz customers only. This offer may be extended beyond the specified end date at the discretion of the Commonwealth Bank. Applications for finance are subject to the Bank’s normal lending criteria. Fees and charges are payable. 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. This has been prepared without considering your objectives, financial situation or needs, so you should consider its appropriateness to your circumstances before you act on it. Terms and conditions are available from commbank.com.au. Commonwealth Bank of Australia ABN 48 123 123 124. Australian credit licence 234945.
MTA
QA &
What products and services does Carafix provide?
PG: As far as parts and accessories are concerned, we offer a full range of products with an emphasis on keeping customers on the road. Wheel bearings, brake parts, chassis parts, window locks, cupboard catches, plumbing fittings – everything and anything. As for services, we do anything to do with caravans, motorhomes and 5th wheelers, from general maintenance servicing through to insurance repairs, hail damage, modifications, caravan fit-outs and so on. In fact, when we get the opportunity, we improve caravans. We take pride in making them better. When we repair a caravan our warranty is our reputation - we want our customers to keep coming back. We also offer new and used sales, including American imported 5th wheelers. We are selective about what we sell and sell only those that are suitable for Australia and are Australian-compliant.
How long has the company been running? PG: The company has been running for more than 35 years and we have owned it for ten.
You have recently moved into speciallybuilt premises. How did that come about?
Paul and Jeav Greaves
PG: Our previous location wasn’t purpose-built and the amount of rent we were paying was becoming hard to justify. With our new facility, our actual daily operating costs are less yet we have about the same floor space, plus showroom and mezzanine storage. And it was built for our needs. For instance, we built it so that it is northfacing. It can get so hot that anybody who builds a factory or workshop
Ten years ago, Paul and Jeav Greaves bought Gold Coast caravan repair company Carafix. Since then, the couple have developed the business into a one-stop shop for caravan owners, offering repair and maintenance services as well as the sale of accessories and parts, and have moved the growing business into a purpose-built, state-of-the-art workshop, retail and sales facility. facing west has absolute rocks in their head! We also put a three-metre canopy at the front, have no skylights, insulated the roof and we have LED lighting. You can go out in the yard and break out into a sweat in the sun but in the workshop it is much cooler. To work here, compared to every other place I’ve worked out of, is great.
What is your background and how did you get involved with the company? PG: I moved here from New Zealand where I had worked in hospitality. Prior to that I worked in marine engineering and had trained as an automotive electrician. I never lost those practical skills, even when I was managing fourstar hotels, and when I came here I planned to either start my own business or buy one. I looked around at many businesses until I saw this one which, at the time, was very basic and was being run out of a tin shed. JG: I’m from Manila and for 20 years I worked in financial services. I started my career as a Life Insurance agent and left the company as vice-president for Distribution Sales Support and Administration. Paul and I make a formidable team. He is really good in the technical aspects of our business and I help out in the administration and the backroom support. We complement each other really well and are happy to see our joint effort grow.
Who are your customers? PG: There is probably still a majority of older people who enjoy caravanning, but all age groups are involved. JG: There are a lot more couples with kids traveling in caravans now and over the years we’ve had parents come in with their caravans who
have brought their children along. Now those children are bringing their caravans to us too.
Have you seen many changes in the industry since you became involved in the business? PG: Owners are becoming far more discerning and the product is changing. Some caravans are actually becoming a little bit too technical. While technology with regards to construction is important, as far as the internal fit-outs – the lighting and electrical systems – it is best to try and keep them reasonably simple For people traveling around the seaboard, or in Melbourne, Sydney or a major centre, things will probably be fine if they have a problem, but what happens when something goes wrong in Broken Hill? How do they fix it? I am getting very good at repairing caravans over the phone! I have talked people through repairs in all parts of Australia and, on one occasion, on the South Island of New Zealand. They couldn’t get any technical advice over there but they found out about me and we helped to get them going.
Do you enjoy caravanning? PG: We do, but we don't do it as often as we’d like. We’re very busy! We enjoy it, of course, and there are a number of caravan clubs with which we are involved. It’s good fun – everyone seems to drink a bit too much! JG: When we were moving to our new premises some of our customers actually came and helped us with the move. It’s a great community and we get invited to caravan rallies. Many of our customers have now become close friends.
How many staff do you have? PG: Four in the workshop and one in general administration and parts ordering, plus ourselves.
JG: Paul is a certified automotive manufacturing technician and we also put two of our staff through that program. There was, at one time, a caravan repair training program but that has since stopped and the caravan industry remains an industry in which those who work in it are difficult to classify. PG: The job is so varied that a caravan repairer needs to have a bit of everything. You can be overhauling the braking system, doing some cabinetry, or painting, or plumbing, or working on 12v and 240v electrical systems. It can be difficult to find someone with all those skills so we look for someone with the right attitude and who is willing to learn. We can train them.
What do you do with your spare time? PG: We both enjoy fishing and we have a boat which we take for a run when we can. We also enjoy caravanning of course, and we really want to do more of it. But we want to get this building finished first– there’s still a little bit more to do. The guys would love to do those little jobs but we have promises to customers to keep. We have a 100 per cent record of meeting customer's expectations, and I want to keep it that way.
What plans do you have for the future? PG: The next step is to expand the retail side of things, both in spare parts and accessories, and new and second-hand sales. We have a good relationship with CAMEC, the biggest manufacturer and distributor of RV products in Australia. They have ‘partnerships’ with stores in some of the main centres and we enjoy that status with them. February 2016 Motor Trader | 9
Showdown in
MOTOWN T
HE NORTH AMERICAN International Auto Show (NAIAS), held each year in Detroit, is one of the world’s most famous and grandest motor shows. With a history that runs back more than 100 years, it is a major draw card for global automakers to show off their latest and greatest creations, and now attracts more than 800,000 visitors, and more than 5000 journalists, to America’s ‘Motor City’. The January 2016 edition of the Show proved to be as popular with the public and industry as ever, with dozens of vehicles, as well as next-generation products and technologies, making their debuts. Here are a few of the announcements and reveals from this year’s show.
ACURA PRECISION A look at the future for the luxury arm of Honda, the Precision concept was designed around the company’s new theme of ‘Precision Crafted Performance’. Acura says this means ‘a renewed commitment to delivering Precision Crafted Performance in every facet of the product experience and creating a powerful and very exciting direction for the next generation of Acura models.’ Nice words, and the athletic and powerful-looking exterior design, coupled to a hi-tech and futuristic interior, does indeed make the Precision concept very appealing.
AUDI H-TRON CONCEPT The Audi H-Tron Quattro concept has an all-electric drive using hydrogen as its energy source. The unit delivers up to 110 kW with a battery providing a further temporary boost of up to 100 kW. Electric motors sit on the front and rear axles and power the H-Tron from 0 to 100 km/h in under seven seconds. Three hydrogen tanks are located beneath the floor of the passenger and luggage compartment and Audi says the hydrogen tanks can be refueled safely and easily in around four minutes and offer a range of up to 600kms.
10 | Motor Trader February 2016
KIA TELLURIDE Kia’s full-size SUV concept – a three-row, seven-passenger luxury liner - is a pretty bold entry by the South Korean company. Highlighting their interest in offering a premium SUV model, the Telluride is stuffed with hi-tech equipment, including, rather amazingly, sensors embedded in the seats that monitor the occupants’ vital signs and then displays that info on the door panels. The Telluride is powered by a PHEV powertrain, and the combination of a 3.5-litre V6 engine and powerful electric motor gives the SUV 400hp while achieving an economy of 9.5l/100km.
BUICK AVISTA A real head-turner from Buick, the Avista has already caused whispers amongst the motoring media that it may appear in Australia as the new Holden Monaro. A design award winner at the Detroit show, the Avista certainly looks muscular and powerful, and its 3-litre twin-turbocharged V6 engine powers the two-plus-two rear-drive coupe with 400hp of grunt.
MERCEDES E-CLASS THE NEW MERCEDES E-Class looks like it will be one of the most advanced machines on the road and the model revealed in Detroit is stacked so full of technology that it makes it closer to being an autonomous vehicle than almost anything before it. The list of hi-tech systems in the car is astonishing and includes PRE-SAFE® Sound - a system that emits a short interference signal through the vehicle's sound system if the risk of a collision is detected. Active Brake Assist is also fitted as standard. The system is able to warn the driver of impending crash situations, provide just the right level of support during emergency braking and, if necessary, also apply the brakes automatically. In addition to slower-moving, stopping or stationary vehicles, it can also detect pedestrians crossing within the area ahead of the vehicle. Additional standard equipment includes Attention Assist, which can warn the driver of inattentiveness and drowsiness; and Crosswind Assist, which can help the driver by substantially mitigating the effects of strong crosswinds to prevent the vehicle from drifting too far off track. Other highlights of the optional Driver Assistance Package Plus include Drive Pilot which is not only able to automatically maintain the selected distance from the vehicle in front, but can also follow the traffic in front at speeds of up to 130 mph. Another feature, Steering Pilot, can continue to actively intervene by taking account of surrounding vehicles and parallel structures. Additional features include Remote Parking Pilot which allows the vehicle to be moved into and out of garages and parking spaces remotely using a smartphone app. The company says the E-Class will also have the world's first fully integral Car-to-X solution to go into series production. The mobile phonesupported exchange of information with other vehicles further ahead on the road can effectively allow the driver to ‘see around corners’.
February 2016 Motor Trader | 11
VLF AUTOMOTIVE FORCE 1 A creation by legendary designer Henrik Fisker, the two-seat Force 1 is a high-performance, low-production sports car, manufactured by the newly launched VLF Automotive. And it is a real beast of a supercar. Featuring an all carbon fibre, lightweight body and 21-inch wheels fitted with high-performance Pirelli P Zero tyres, the car has a 745HP, 8.4-litre V10 engine buried beneath its striking exterior. That engine can propel the car to a top speed of 350km/h and to 100km/h in 3 seconds. Limited numbers of the Force 1 V10 will be produced and start at a base price of $US268,500.
TOYOTA MIRAI KYMETA TOYOTA DISPLAYED A research car, based on the Mirai fuel cell vehicle, equipped with satellite communications technology from Kymeta, a US-based company that is 'the world leader in flat-panel antenna technology'. Toyota is working to enhance its connected technologies and is considering using satellite communications in the future, The company says that while these satellites have historically required the use of a “dish” antenna on the ground, Kymeta’s satellite antennas remove the need for mechanical components by using software and liquid crystal technologies to electronically track and steer towards satellites. The company says that satellite communications offer several key benefits to meet automotive needs, including: 1. the distribution of huge amounts of data to a vehicle 2. broad coverage areas and the global deployment of connected vehicles that share common standards across national borders, and 3. more stable and secure communications, particularly in emergencies such as natural disasters.
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AUDI LUNAR QUATTRO IT’S NOT A vehicle you would expect to see at one of the world’s most important car shows, but Audi did reveal a rather special little vehicle - the Lunar Quattro. The company is assisting the Berlin-based engineering group Part-Time Scientists in the Google Lunar XPRIZE – a competition organised for engineers and business enterprises worldwide which offers approximately $30 million in prize money. To win, a team needs to transport an automated vehicle to the moon and, once there, the rover must drive at least 500m and transmit high-resolution images and video footage back to Earth. For power, the Lunar Quattro uses a swiveling solar panel to generate electricity which is fed to a lithium-ion battery that powers the four wheel hub motors. All four of the wheels can be rotated 360 degrees.
NISSAN IDS CONCEPT Making its US debut at Detroit, Nissan says the IDS is ‘a vision of the future of autonomous driving and zero emission EVs’ and will, according to CEO Carlos Ghosn, “revolutionise the relationship between car and driver, and future mobility." An example of this, the company say, is shown through the Piloted Drive function. When the driver selects Piloted Drive and turns over driving to the vehicle, the car's performance — from accelerating to braking to cornering — imitates the driver's own style and preferences. In Manual Drive mode the driver has control, but the Nissan IDS Concept continues to provide assistance. Sensors continually monitor conditions and, in the event of imminent danger, will assist the driver in taking evasive action. The company says that, in addition to its learning prowess, the IDS Concept's Artificial Intelligence (AI) ‘communicates like an attentive partner’ to ‘create a driving experience that is comfortable, enjoyable and safe’.
LEXUS LC 500 Powered by the proven 5.0-litre V8 found in the RC F and GS F, the LC 500 is the first Lexus to use the brand’s all-new, premium rear-wheel-drive luxury platform. The coupe shares many of the design cues of the LF-LC concept revealed four years ago in Detroit and there’s no denying the low, wide stance gives the car an attractive and aggressive look. The LC 500 boasts the Lexus Safety System+ which integrates several of of the company’s active safety technologies: an All-speed Dynamic Radar Cruise Control (All-speed DRCC), a Pre-Collision System (PCS) , and Lane Keep Assist (LKA).
February 2016 Motor Trader | 13
STAFF TRAINING A GREAT INVESTMENT! A NEW and UNIQUE training program designed to give all computer users a comprehensive set of skills to manage the growing rates of musculoskeletal discomfort associated with computer use.” Dr Elizabeth Kirk PhD The internet has made a dramatic change in the way customers communicate with your business. Salespeople now spend less time on their feet and more time in front of their computers. In fact, the new breed of salesperson is selling cars from their desk. This new trend for your sales force has led to a new trend in training. To improve profitability, companies are now looking at office ergonomics training to increase revenue streams by decreasing discomfort, absenteeism and healthcare costs, and improving staff retention and productivity. The aim of this training is very simple. It gives computer operators the multidisciplinary knowledge they need to better care for themselves while working. But more importantly - and the truly unique part of this program - is that it also provides the training and support your operators need to immediately transfer that knowledge into effective work skills. This training will give each participant a full understanding of... • Causes of work-related musculoskeletal discomfort and disorders • The latest ergonomic and healthy work behaviour recommendations • Preventative measures - including stretches and the use of diagnostic tools • MOST IMPORTANTLY, Practical Ergonomics provides the knowledge and skills that ensure your staff can immediately
apply and get benefits from this training in your workplace. In addition, the use of quick reference handouts and ongoing work tips further supports their ergonomic, health and wellbeing training. Managers and team leaders will also receive a detailed manual outlining the latest research on the management of work-related musculoskeletal discomfort and disorders. The training course runs for three-and-a-half hours and is delivered in stages, including a one-on-one session at the trainee’s workstation. All stages are designed to be delivered in-house at a time that suits you and your team. Book now and give your staff, and your business, the training they deserve.
COST Prices and course length vary with group size. Group sizes 0-5 participants - 1 day course. Group sizes 6-20 participants - 2 day course. Contact us for a quote.
MORE INFORMATION Phone: 1800 884 137 Email: training@mtaglobal.com.au Websites: www.mtaglobal.com.au www.practicalergonomics.com.au
Address Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 Postal PO Box 4530, Eight Mile Plains, Qld 4113 Phone 1800 884 137
20160339
THE BODY CORPORATE INSTITUTE and MTA GLOBAL
News IN BRIEF . . . AP EAGERS ACQUIRES CRAMPTON AUTOMOTIVE GROUP AP Eagers Limited has agreed to acquire the automotive retail businesses of the Crampton Automotive Group. The Group includes West-Star Motors and Toowoomba Holden operating in Toowoomba and representing the Mercedes–Benz, Hyundai, Peugeot, Citroen, Performax, HSV and Holden brands, along with Port City Autos representing the Holden, Subaru, Chrysler Jeep Dodge, and Isuzu Trucks brands in Maryborough/Hervey Bay. In a statement, AP Eagers said the businesses employ 170 staff and generate annual revenue of approximately $130 million. 'Mark Crampton has developed an extremely well-managed dealership operation achieving above benchmark returns and being one of the top performing regional dealers for a number of the franchises represented. AP Eagers expects the businesses will continue to thrive under its decentralised management structure,' AP Eagers said in its statement. The company added that the acquisition would enhance AP Eagers’ strong presence in the South West Queensland region and provide an opportunity for further expansion in the growing Hervey Bay region. The transaction is expected to complete at the end of June 2016 'subject to satisfactory due diligence, completion of formal transaction documentation and manufacturer approval'.
GOVT GRANT TO DRIVE INNOVATION IN THE AUTO SUPPLY CHAIN It has been announced that more than $15 million will be invested in 10 Australian automotive component manufacturers to help them move into new industry sectors before local car manufacturing ceases in 2017. Minister for Industry, Innovation and Science Christopher Pyne said that $4,797,383 in Government support would generate a total of $15.1 million in investment, to help firms diversify into new markets. Ten businesses will receive grants ranging from $101,691 to $1 million from round three of the Automotive Diversification Programme to complement contributions by each recipient. Mr Pyne said this Automotive Diversification Programme funding was part of the Australian Government’s $155 million Growth Fund which has supported 31 diversification projects so far.
HEADS-UP FOR BMW CONCEPT HELMET
BMW's concept helmet offers heads-up display technol
ogy
B
MW HAS UNVEILED a futuristic, next-generation motorcycle helmet with heads-up display. The helmet will, the company says, project necessary or desirable traffic or vehicle information directly into the rider's field of view, allowing for constant observation of the traffic on the road, with no distraction. The display options comprise safety-relevant information such as tyre pressure, oil level and fuel level, speed and selected gear, speed limit and road sign recognition, plus warnings of impending dangers. The basic safety info is not all this helmet can do. A camera pointing forwards, located inside the helmet, can record video footage of the journey. There’s also a second, rear-facing camera which could act as a 'digital rear-view mirror'.
The helmet, which is also fitted with an integrated mini-computer and loudspeakers, is controlled from the left-hand handlebar fittings allowing the rider to comfortably select the information as required. Powered by two batteries, the operating time of the system is around five hours. BMW Motorrad says it wants to develop this technology to seriesproduction level within a few years. February 2016 Motor Trader | 15
MODEL: DUCATI SCRAMBLER 450 R/T YEAR: 1971 ENGINE: 450CC OWNER: BRETT MUTTON
Delight
L
AST YEAR, DUCATI launched the Scrambler. Available in four model variants, the 803cc, 75hp bikes have been a rip-roaring success for the Italian manufacturer, becoming the company’s best-selling product. The company describes the Scrambler as having ‘post-heritage design which gives a contemporary take on the iconic bike built by Ducati in the 70s. This Ducati Scrambler, though, is not a retro bike: it is, rather, intended to be just how the legendary motorcycle would be today if Ducati had never stopped building it’. That ‘legendary motorcycle’, the original Scrambler, was built during the boom of motocross racing in the late '60s and early '70s and, during its more than 10-year production run, the Scrambler series included various models built for road and off-road riding with engine sizes running from 125 to 450cc. As with its modern descendent, the original Scramblers were extremely popular. However, after more than 40 years, a number of the models are now quite rare. One of those is the Scrambler 450 R/T, the race-spec version of the standard road bike. In Australia, you can, perhaps, count the number of these bikes left using the fingers of just one hand. And one of those is owned by Brett Mutton from the Brisbane Motorcycles dealership group. “It’s a motocross bike, that’s what is special about it,” says Brett. “There was a road-registered version and then there was the dirt bike version and I don’t believe there are many of them left. I’ve been led to believe that there may be only three left in Australia. They are pretty rare. “I got the bike from a mate of mine in Melbourne. It was in a million bits but we re-built it, painted it and got it to the stage it is now, which is pretty much 90 per cent original. “The rear guard, the front guard, the frame, tank, motor – which we rebuilt - and wheels are all original, as is the exhaust. I think the rear shocks have been changed. They came with the bike but I don’t think they’re original. I also had to buy the side panels, reproduce the seat and make
16 | Motor Trader February 2016
some manifolds for the carburettor. Also, the handlebars are not original. I do have the original ones, but I got a bit lazy and haven’t put them on yet! “The paint is the original colour and we had that work done by a company called Street Elite restorations. They’ve done a couple of things for me, including my Monaro, and their work is really very good.” Brett, whose Brisbane Motorcycles Caboolture shop was named Honda Motorcycles Australia National Dealer of the Year last year, has been involved with motorcycles pretty much his entire life - including a stint racing bikes during the 1980s - and, when you consider his family’s history, it’s no surprise that he’s a fan of two-wheeled transport. “My grandfather was a factory rider for Royal Enfield in the UK back in the 1920s,” he says. “My son did a couple of years racing in the British Superbikes and when we were over there we went to see the library at Redditch (the town where Royal Enfield was based) and researched our family’s history. It was very interesting. My grandfather worked and raced for them, including riding in the Isle of Man TT a couple of times. His brother, Tommy Mutton, worked for Velocette and was Stanley Woods’ (a multi-TT winner in
Ducati Scrambler, 2015
the 1920s and 30s) mechanic back in the day.” The Ducati Scrambler doesn’t go back quite that far and, though the 1971 classic is undoubtedly a better bike than those of the 1920s, Brett confesses that it isn’t quite up to the standard of today’s modern machines. “I’ve taken it out and, to be honest, it rides like an old motorbike!” he says. “It’s like having an old car – they don’t drive nicely either. For instance, my HQ Monaro certainly doesn’t drive like my Audi!” With its days on the road or dirt track firmly behind it, the Scrambler has found a home at Brett’s Brisbane dealership, adding a dash of the ‘unusual’ to a shop teeming with the shining modern masterpieces from Honda, Suzuki and Ducati. “We have used it for a bit of promotional work,” says Brett. “And people do come and have a look at it and ask ‘What’s that?’. It is a pretty cool thing.” And it joins a number of other ‘cool’ bikes and cars that Brett has collected over the years, including a couple of late '60s Honda mini-trails, a Yamaha TZ250B, a 1940s vintage Royal Enfield and a TZ350 which, says Brett, was Australian former road-racing champion Glen Middlemiss’s old bike and has three Australian championships to its credit. As for cars, he owns a fully-restored HQ GTS Monaro, and is currently restoring an XU-1 Torana. But after years of collecting and restoring these classics, it would seem the Torana might just put the brakes, at least for a while, on any future restoration projects. “I’m just about over restorations. They cost a lot of
DO YOU HAVE A PRIDE AND JOY
money!” says Brett IN THE GARAGE THAT YOU WOULD with a grin. “I have LOVE TO SEE IN THE PAGES OF wanted an XU-1 MOTOR TRADER? since I was about 18 and this one is Contact Jonathan Nash at jonathann@ now three years mtaq.com.au or 07 3237 8721 and let’s into its restoration see if we can share your classic with other members. and has a brand new motor, brakes, diff and gearbox. It is costing a fortune but I am really looking forward to driving it!” Though restorations may be out of the picture, there is one more car Brett has his eye on to buy. “My dad had a 1962 Hillman Super Minx which was in our family for a long time before it went to my mother’s cousin,” he says. “He restored it and it actually had a cameo role in the recent movie The Sapphires. “I’m going to buy that back and drive it back here from Melbourne. My dad always used to say ‘My Hillman could drive to Queensland standing on its head’. Well, we’re going to find out!” February 2016 Motor Trader | 17
Training GM's Professional Circle perspective workplace sustainability and potentially increase productivity in the business. • Helps with career development. • If you want to have an apprentice work in your business, either you or your supervisor must have the appropriate qualification to manage that apprentice and signoff the apprentice's progression against the training plan.
MEMBERS ESSENTIALS
PAUL KULPA GENERAL MANAGER MTA INSTITUTE
Contents 18 Training GM's Professional Circle perspective 19 Professional Circle training 21 Industrial relations 24 Member matters 27 Member profiles
CLIFTON MOTORS PIALBA BRAKE, CLUTCH AND STEERING CENTRE
WHY IS IT WORTH HAVING YOUR SKILLS RECOGNISED WITH A QUALIFICATION?
H
ELLO AND WELCOME to this month's edition of the Training General Manager's Professional Circle Perspective. I would like to talk to you about trade recognition and why it’s important to have your skills, and the skills of your staff, recognised. The skills needs of the automotive industry have been documented as a priority for some time, and some intervention strategies have been incorporated to address these requirements. However, this has not reduced the need for recognised skilled workers. Trade recognition is where you are identified as having previous experience in a particular occupation and available evidence suggests you are competent to work in this occupation. You are consequently awarded the qualification to prove it. The benefits of having yourself, or your staff, recognised with a qualification are: • Retention of quality workers in your business. The ability to provide this professional development ensures ongoing
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• Customer expectations remain very high at all stages of the product life cycle from initial purchase through regular maintenance and repair. These expectations must be met by the organisations and employees providing the products and service. Businesses see the benefit in promoting qualified staff to increase their competitive edge. • And, of course, nothing is more satisfying than completing a qualification to recognise your skills. The MTA Institute has trainers in your area ready to assist with recognising your trade with a qualification in light vehicle, heavy commercial vehicle, motorcycle, agricultural, mobile plant collision repair and vehicle refinishing. The cost is minimal, and there are some elibility criteria, so give us a call and we will be more than happy to walk you through this process.
MEMBERS ESSENTIALS
T
HE RISE OF the all-electric and hybrid vehicle seems unstoppable. The media is awash with stories concerning autonomous vehicles, the newest hybrid or all-electric car, new fuel cell and battery charging technologies, or new distances achievable by batterypowered cars that might help to settle the nerves of those with ‘range anxiety’. All the major manufacturers now produce hybrid and all-electric vehicles to complement their petrol engine-powered models, and momentum to produce these vehicles looks set to continue. Even though sales of these cars in Australia remain a fraction of the total, a Roy Morgan report from December 2014 claimed that ‘almost 46 per cent of the 2,258,000 Australians planning to buy a new car in the next four years would seriously consider buying a hybrid vehicle’. As the numbers of hybrid cars
“IN AMERICA AND EUROPE EVERY MANUFACTURER HAS AN ELECTRIC OR HYBRID CAR AND IT MAY BE THAT WE ARE A LITTLE BIT BEHIND HERE IN AUSTRALIA. BUT THE TECHNOLOGY IS COMING AND WE NEED TO BE PREPARED.” increase on our roads, so it becomes vital that Queensland’s automotive servicing and repair industries are prepared to deal with these vehicles’ complex technology. And the technology is indeed complex, and potentially dangerous. High voltage battery and hybrid
powertrain components can create a possible shock hazard with battery packs carrying voltages up to, and over, the 600-volt mark. When considering that household mains electricity in Australia runs at 240 volts, it is clear that if a hybrid vehicle is handled incorrectly there is real potential for problems. The MTA Institute has developed a new training course to help automotive businesses familiarise themselves with hybrid vehicles. The ‘Hybrid Electric Vehicle Introductory Course’ covers areas including hybrid technology principles; tools, usage and safety requirements; component identification and location; and skills required to deactivate and isolate the high voltage supply system. It has been designed specifically for automotive repairers who want to understand hybrid technology and associated safe work practises. February 2016 Motor Trader | 19
E S S E N T I A L S
MTA INSTITUTE LEADS THE CHARGE ON HYBRID VEHICLE TRAINING
M E M B E R S
Professional Circle training
MTA Institute trainer Paul Tugwell, who delivers the MTAI hybrid training programs, wrote the resources for the course and is also developing more detailed and extensive resources for further, advanced training programs. An experienced autoelectrical trainer, he is keen for the industry to Paul Tugwell and course participants discuss the hybrid powertrain grasp the importance of fully understanding hybrid technology especially as, at least EFFECTIVELY WE HAVE for the moment, there is not even a requirement for technicians working SEEN A SKILLS GAP with hybrids to be licensed. DEVELOP AS HYBRID “Building electricians deal with VEHICLES HAVE BECOME 240 volts and three wires, and yet MORE PREVALENT AND they need a licence,” said Mr Tugwell. “With hybrid vehicles we are working AS THEY MOVE OUT with 650 volts and over 100 amps OF MANUFACTURER and the cars have very complex WARRANTY AND INTO electronics. “In America and Europe every THE AFTERMARKET manufacturer has an electric or hybrid REPAIR INDUSTRY. car and it may be that we are a little bit behind here in Australia. But the the technology and is aimed at technology is coming and we need tradespeople from across the board. to be prepared. For instance, in our first course we “The MTAI introductory course gives an important overview of had five auto-electricians and 14
“
”
MTAIT TRAINER PROFILE
E S S E N T I A L S M E M B E R S
Professional Circle training
STEPHEN MARKS
Why should someone consider a career in the automotive industry?
October 2012.
If you have a real passion for motor vehicles the job becomes very rewarding.
Light Vehicle, Parts Interpreting and Heavy Commercial Vehicle.
What is the most satisfying aspect of your role as a trainer for MTA Institute?
Trained as an apprentice light vehicle mechanic after leaving school and continued working on light vehicles for 15 years. Have worked for my local council as a light and heavy commercial vehicle mechanic and also worked as a marine mechanic.
20 | Motor Trader February 2016
For more information on hybrid training programs call 07 3722 3000.
When did you become a trainer for MTA Institute? What areas do you train?
What is your background in the automotive industry?
mechanics participate. Our advanced training will be much more technical and will include diagnosing and repairing hybrid systems themselves.” “Up-skilling the automotive community around hybrid technology is very important,” added Marcello Riotto, Operations Manager for MTAI. “Effectively we have seen a skills gap develop as hybrid vehicles have become more prevalent and as they move out of manufacturer warranty and into the aftermarket repair industry. This gap needs to be addressed and the introductory course focuses on the fundamentals of hybrid technology and how to manage these vehicles when doing basic repairs. “The potential risks to technicians, and indeed to the cars themselves if things aren’t done correctly, are very real and the hybrid training programs are designed to prepare businesses to deal with this increasing sector of the market.”
What is the best piece of advice you can give to an apprentice starting out in the industry?
Seeing apprentices gain knowledge of different aspects of how motor vehicles work and seeing them grow as tradespeople.
To commit themselves to their apprenticeship and learn as much as possible. Having a mechanical aptitude and a mechanical qualification will set them up for many different opportunities during their career.
What do you believe is the most important aspect of training?
When you’re not training, what do you like to do?
Training apprentices so they truly understand the subject and watching them grow in confidence.
Watching motorsport, cycling, swimming, kayaking and enjoying good food and beer.
TED KOWALSKI INDUSTRIAL RELATIONS MANAGER
“Prevention is better than cure” is an old saying that certainly holds true in the area of harassment, bullying and discrimination at the workplace. With each of these issues, while an offender can be personally held to account, the company can also be held liable for the failings of its employees under a legal concept known as vicarious liability. One of the best ways to provide a defence against such a potential claim is to have in place a company policy which addresses each of these issues. The policy would, in the first instance, outline what constitutes harassment, bullying and discrimination and indicate that the company recognises its legal obligations and takes them seriously. Employees would be urged to report any instances of unacceptable behaviour and be assured that action would be taken via an investigation of the complaint and appropriate follow up. If the complaint was found to be valid, action arising could range from a formal warning, for lesser offences, up to dismissal for more serious cases. Employees would be reassured that
by lodging a complaint they would not be subjected to retaliatory action and they still have recourse to either Fair Work or the Anti-Discrimination Commission. (A thorough investigation would include seeking evidence backing up the complaint – all the while restricting interviews to only those other employees who might have specific knowledge of the alleged offence.) Having drawn up a policy, it would be essential to make it known to all employees through either person to person or departmental discussion and to publicise its existence. The policy should also be covered in the induction process for all new employees. It would be very useful to have the job descriptions of managerial and/or supervisory staff include an obligation to be mindful of these issues and to take action should any potential problems arise – before they become major issues. The company must be able to show that this policy is a “living document” which remains under regular overview to ensure that complacency does not set in. A unified template policy document covering all these issues is available through the industrial relations department on request.
MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name
Principal/s
Address
Division
Agnorth Pty Ltd AMD Automotive BP Glenview Caltex Service Station Nerang Car Business Kuttabul Automotive Mazfix TCM Mechanical
Michele Pasquale Wayne Bradley David Watts Jennifer Pickett Robert Aldons Matthew Van Moolenbroek Alan Kajewski Sterling Holmes
122-126 Graham Street, AYR Q 4807 207 Bridge Road, MACKAY Q 4740 2632 Steve Irwin Way, GLENVIEW Q 4553 85-87 Spencer Road, CARRARA Q 4211 226 Anzac Avenue, KIPPA-RING Q 4021 3198 Bruce Highway, KUTTABUL Q 4741 48 Smallwood Street, UNDERWOOD Q 4119 2 McDonald Street, MIRIAM VALE Q 4677
admin@agnorth.com.au amdautomotiveservices@outlook.com bpglenview1@hotmail.com jengpickett@hotmail.com bobaldons@carbusiness.com kuttabulautomotive@gmail.com admin@mazfix.com.au tcmmechanical@live.com.au
QFIMDD AED SSCSAQ SSCSAQ ARD AED ERAQ AED
February 2016 Motor Trader | 21
E S S E N T I A L S
THE IMPORTANCE OF HAVING A WRITTEN HARASSMENT, BULLYING AND DISCRIMINATION POLICY
M E M B E R S
Industrial relations
E S S E N T I A L S M E M B E R S
Professional Circle training
MTAQ TAKES PROGRAM ON THE ROAD WITH MOBILE TRAINING UNIT
T
HE AUTO INITIATION MTAQ's Mobile Automotive Training Unit program, the MTA Queensland’s (MTAQ) pre-vocational automotive course, has been launched into the Queensland regions with courses now being run on the Sunshine Coast and Gold Coast. The nine-week course, delivered under the Queensland Government’s Skilling Queenslanders for Work initiative, is aimed at a diverse range of groups – from disadvantaged, matureage and young job seekers; people with a disability; and members of the Aboriginal and Torres Strait Islander community amongst others - and is designed so participants will earn a Certificate II in Automotive Vocational Placement and gain both the basic skills and knowledge required to work in the automotive industry, as well as training in the ‘life skills’ that Zen Collins will give them the confidence ng unit s work from the back of the traini to be ‘job-ready’. The program Trainer Darryl Shiels and Brian Gillie includes a five-week practical training element, a two-week ‘life skills’ training component and two weeks of work experience placement. To enable the Auto Initiation program to be delivered to regional areas, the MTAQ has invested in a Mobile Automotive Training Unit – a Mercedes Sprinter truck fully stocked with the equipment and educational material required to train the students. Auto Initiation students study for their Certificate II in Automotive Vocational Placement The Mobile Automotive Training Unit will be used through the year to "We have fixed facilities in Brisbane training unit allows us to essentially deliver the Auto Initiation program to but the Auto Initiation program is take a workshop with us." regional areas - including Townsville, running statewide and we don’t have And the training unit has been put Mt Isa, Mackay, Rockhampton, facilities statewide," said Marcello to good use in its first outing on the Gladstone, Hervey Bay and Bundaberg Riotto, Operations Manager for the Sunshine Coast, with more than - enabling more than 200 students to MTA Institute. "We can easily find 20 students using it as they work start on a pathway to a career in the classrooms and space but the mobile towards their qualification. automotive industry. 22 | Motor Trader February 2016
MTAI EXPANDS ITS CAPABILITY WITH MOBILE TRAINING UNIT
hed and fitted with all the equipment required to
THE MTAQ'S NEW Mobile Automotive Training Unit is a 2008 Mercedes Sprinter. Formerly an ambulance, the Sprinter was stripped down, refurbished and fitted out with all the equipment and material necessary to become, essentially, a workshop on wheels. "It has a 400-piece mechanic kit, all the hand tools and air tools we need, plus a compressor and some electrical tools too," said Marcello Riotto, Operations Manager for MTA Institute who oversaw the Training Unit program. "The main content is the
For more information about the Auto Initiation program, contact Marcello at auto@mtaq.com. au or 07 3722 3000. This Skilling Queenslanders for Work project is proudly funded and supported by the Queensland Government. After being fully kitted-out and 'wrapped' in MTAQ's colours, the Mobile Automotive Training Unit is ready to hit the road
make it a 'mobile workshop'
training aids. We have a variety of elements, such as small engine parts, but there is also a training nook which allows for one-on-one training, or which can be used as office space for the trainer. There’s a monitor there, a laptop, and the van is equipped with wi-fi. This means that should online learning be required, then students can do that too, no matter where they may be located. "In the future, we can utilise the Unit for all manner of projects. It is limited only by the material and training aids with which we equip it."
E S S E N T I A L S
The former ambulance arrives to be stripped, refurbis
M E M B E R S
"Every one of the participants has been terrific," said MTAI trainer Darryl Shiels. "They've taken on the workshop activities well, they've all got involved and they are a great crew. And the Mobile Training Unit is a tremendous tool - we've used just about everything on board. "The Auto Initiation program is a great program," he added. "The students are learning the fundamentals so when they walk into a workshop the employer won't have to show them how to put a vehicle on the hoist, how to jack up a vehicle correctly, how to use specific tools or how to carry out service operations. "The course gives the students all the skills they will need to to land an apprenticeship." For Zen Collins, a 27-year-old student from the Sunshine Coast, the Auto Initiation program has proven to be an enjoyable learning experience. "I'm passionate about cars and we've studied service procedures, tool use and mechanical system fundamentals. We've also learnt life skills such as how to conduct ourselves in an interview. It has been fantastic." For 26-year-old Brian Gillies, also from the Sunshine Coast, the program has been equally informative, and though wheelchair-bound from Spina Bifida he has tackled the program without a problem. "I've always been able to improvise in any environment I've been in so, for something like this, it's actually quite easy for me," he said. "The trainers have been great. They've been very open-minded and willing to learn from me, and we easily bounce ideas off each other. "The course has been amazing," he added. "It's opened my eyes to alot of elements about vehicles. Eventually, I'd like to move on to work on motorbikes. I've been around them alot of my life and they are easier for me to work on. "I'd absolutely recommend this course - it's fun and enjoyable, and there's a wealth of information being taught."
THE LEYLAND P76: IT’S N
M E M B E R S
E S S E N T I A L S
Member matters
Graham Joseph (right) has five P76s including this V8 model in crystal white
I
N THE MORE than 100 years since the first automobile spluttered into life, there have been some truly outstanding cars. The E-type Jaguar, the Ford Mustang, the Monaro, the Aston Martin DB5, the XC Cobra . . . the list goes go on. But for every shining star in the automotive firmament there is a car that has been cursed with the label of ‘lemon’ and which has become the punchline to many an automotive joke. For example, the East German Trabant, Britain’s Austin Allegro and America’s AMC Pacer seem to rate highly on many ‘worst of ’ lists. Australian cars haven’t escaped the pointed finger of mockery either, and the much-maligned Leyland P76 has received plenty of scorn over the years. However, more than four decades after its launch and quick demise, its reputation is being reassessed and 24 | Motor Trader February 2016
“LEYLAND’S PROJECT 76 – A NAME GIVEN TO THE CAR DURING ITS DEVELOPMENT AND ONE THE COMPANY STUCK WITH ONCE IT BECAME PUBLIC KNOWLEDGE – WAS LAUNCHED WITH A GREAT DEAL OF FANFARE IN 1973.” there are more than a few who believe the P76 is anything but the ‘dud’ that former Prime Minister Gough Whitlam memorably called it. One of those people is Graham Joseph from Pacific Highway Auto Recyclers in Stapylton, south of Brisbane. Graham owns five of the
big Aussie saloons – one in excellent condition, one in the process of being restored and three that have succumbed to the ravages of time but are proving useful for spare parts. His affection for the P76 goes back to the 1970s, when his father owned a car yard and encouraged Graham to use the car for a lengthy road-trip. “When I was 18, I was planning to go to Sydney and my father wasn’t happy with me driving all that way in the car I had at the time,” says Graham. “He suggested I use a car from the yard and it just happened to be a P76 V8 auto. “It was stunningly good to drive! And that was the thing that really stuck in my mind – just how good it was. It was a nice, comfortable, powerful car with lots of room. “I didn’t pursue one for years after that and then, in about 2000,
M E M B E R S
I went to a swap meet in Toowoomba and I saw a P76 for sale and bought it. That car, my orange P76, is one I’m still restoring. A little while later I discovered the crystal white one - a 1973 V8 auto. It was more of a going concern and I ended up restoring that one first. “It has had the bodywork re-done, the interior trim, and I’ve had the motor and transmission rebuilt. It didn’t have air-conditioning or power steering when I got it so I have had both of those fitted too. It’s a great car.” An attempt by British Leyland to crack the Aussie big-car market and challenge Holden, Ford and Chrysler, the P76’s lifespan was a short one - just 18 months of production and 17,000 units built - and it soon became a
E S S E N T I A L S
NO JOKE
The July 1973 edition of Motor Trader reported all the technical details of Leyland's new P76
byword for automotive disaster. And yet things had started off so promisingly. The Project 76 – a name given to the car during its development and one the company stuck with once it became public knowledge – was launched with a great deal of fanfare in 1973. Designed and built in Australia, the car was, despite a development budget of just $21million, a well-conceived vehicle with a number of advanced features.
Available with an excellent and economical all-alloy V8 engine, or a six-cylinder powerplant, across its three models, the P76 had a combination of features that included power-assisted ventilated front disc brakes, Macpherson strut and coil spring suspension and side impact bars in all four doors. And it was truly a family car, with enough space for four with room to spare and, famously, a boot so cavernous that it could comfortably carry a 44-gallon drum. February 2016 Motor Trader | 25
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Members matters The P76’s wedge-shape design was adventurous too, and the whole package caused a sensation when launched. The motoring media loved it. It picked up the prestigious Wheels Magazine Car of the Year award in 1974 and the public clamoured to get their hands on it, flocking to Leyland dealers and ordering more than 2000 of them in the first week on sale. However, behind the scenes, things were not so rosy. Unrest within industries that supplied materials for the car’s construction caused problems in production, and the world fuel crisis struck just as the P76 was hitting the forecourts, with the price of crude oil quadrupling and leaving consumers questioning the worth of big-engine cars. Leyland Australia’s UK parent company was in some financial difficulty and the investment of just $21million, along with pressure to bring the car swiftly to the market, meant development was not all it might have been. Reports of quality issues soon began to surface. Sealing issues on windscreens and door panels meant water and dust could enter the interior. Interior fittings shook loose, the padded top of the dash distorted in the hot sun, and the ‘wood’ trim would peel off. Door windows would come off their runners and fell to the bottom of the door if the door was slammed shut, while window winders would come off in customers’ hands. There was even talk that the exhaust system was so close to the floor that the carpet would smoulder from the heat.
The problems seemed to be legion and, in the end, the P76, could not recover from them. Given all that though, the P76’s design and features did suggest that, if the quality issues could be resolved, then Leyland had a winner on its hands. The twodoor version of the P76, called the Force7, hinted at what may have been. “There were quality and fitment issues with some of the parts, that’s true,” says Graham. “But many of those existed in other cars of the time and the P76 does stand up very strongly against cars of that era. In many ways they were actually superior to the Ford and Holden vehicles. They were Wheels Magazine’s Car of the Year after all, and the Wheels writers weren’t stupid! “If Leyland had been able to keep going, they would have rectified those quality issues for the next version of
“. . . THE P76 IS MORE
OF A ‘WHAT MIGHT HAVE BEEN’ STORY THAN THE PUNCHLINE OF A JOKE. A BIT MORE TIME, A BIT MORE DEVELOPMENT, A BIT MORE INVESTMENT, AND THINGS COULD HAVE BEEN MUCH DIFFERENT.”
. . . while three more are used as parts donors
26 | Motor Trader February 2016
Graham Joseph's second P76 is undergoing restoration . . .
the car. Indeed, the Force7 was ready and Leyland did, in fact, produce a few. That car, I think, would have worked - it just didn’t get the opportunity to impress. In the end just 10 of them survived but they were very good and they are all still around today.” In fact, there are enough fans of the P76 that the car is unlikely to disappear from our roads. With P76 Owners Clubs in every state, there’s enough experience around to keep the potential maintenance challenges of this industry classic in check. “Being a member of the Owners Club means you have access to some important things, including the knowledge of club members,” said Graham. “Some members have been P76 people all their lives and their knowledge is unbelievable – they know everything there is to know and then some!” In the end, the P76 is more of a ‘what might have been’ story than the punchline of a joke. A bit more time, a bit more development, a bit more investment, and things could have been much different. And as the car continues to be reassessed it may be that the old gag in which the car was called ‘the P38, because it was half the car it should have been’, can be put to rest. For the moment though, being able to take a joke is probably not a bad thing for a P76 owner. “The reaction from people when they see the car is usually pretty good,” said Graham. “You can get the occasional person who has a crack at it because they’ve heard the stories, but we don’t worry about them. You get pretty thick-skinned as a P76 owner!”
What has been your proudest business achievement to date? What is the best thing about working in your industry? The people you meet and help make decisions.
What is the best piece of business advice you have ever given or been given? Treat customers the way you like to treated.
What would you say to someone thinking about joining the MTAQ?
Clifton Motors
It is money well spent. Location: Murgon Type of business: Motor Vehicle Dealership Number of employees: 12
How did you hear about the Motor Trades Association of Queensland (MTAQ)? Through industry contacts.
Trading since: 1961
How has being an MTAQ member benefited your business?
MTAQ member since: 1961
Up to date industry information.
Ongoing timely support for both staff and technical matters.
What has been your proudest business achievement to date? Offering a sound training regime for new apprentices.
What is the best thing about working in your industry? The people – both customers and staff.
What is the best piece of business advice you have ever given or been given?
Pialba Brake, Clutch and Steering Centre Location: Pialba Type of business: Mechanical workshop Number of employees: 5 Trading since: Mid 1980s MTAQ member since: 2007
How did you hear about the Motor Trades Association of Queensland (MTAQ)? Was a member with a sister organisation interstate. Joined the MTAQ when we moved to Queensland.
Honesty and integrity with yourself and your customers.
What would you say to someone thinking about joining the MTAQ? Do not think about it – do it now. Support your industry and it will support you.
How has being an MTAQ member benefited your business? February 2016 Motor Trader | 27
E S S E N T I A L S
Being in business and servicing the Murgon area since 1961.
M E M B E R S
Member profiles
E S S E N T I A L S M E M B E R S
Members matters
Will Brown (right), driving the Cars Galore car, took third spot in the inaugural Australian Formula 4 championship, and won the Rookie of the Year title
Photos: Jack Atley
SUCCESSFUL SEASON PUTS WILL’S CAREER ON FRONT ROW O N THE WEEKEND of July 10-12, 2015, a new era in Australian motorsport began with the debut of the Formula 4 racing category. A single-seater, open-wheel racing category focusing on driver development, the Formula 4 championship’s opening round kicked off in Townsville as part of the V8 Supercars event, and the three-race meeting produced some sensational driving and introduced some exceptional driving talent to motorsport fans attending the event, as well as those watching the races live on the Fox Sports channel. Amongst the talented drivers on the track that day was Toowoomba youngster Will Brown, who carved his name into the history books by securing the first ever race win in Australian Formula 4. It was a spectacular result for the 17-year-old. “It was pretty amazing,” he said at the time. “We were hoping to get top 5 but to get the win was fantastic, especially being a rookie and it being 28 | Motor Trader February 2016
the first time for anybody to race those cars in competition.” Five months later, and Formula 4’s seven-race season came to an end in Sydney, climaxing with a tight, threerace shootout on the Homebush street circuit as part of the final round of the V8 Supercar series season. And for Will, the championship finished as it had started, with a result that confirmed his talent and which marked him as a future superstar of the sport - his third-place finish at the Sydney event ensuring him a thirdplace finish in the championship. BACKED BY THE FIA, the sport’s global governing body, and by CAMS (Confederation of Australian Motorsport), Formula 4 is designed to be a step up from the Kart racing with which many young drivers start their careers, and bridge the gap to Formula 3 and, ultimately, Formula One or another top racing category. All drivers race identical cars – featuring Mygale carbon fibre monocoque chassis and powered by the Ford 1.6-litre EcoBoost engine tuned to deliver 160hp and a top speed of more than 230km/h.
He also collected his fifth Rookie of the Round win – a result that secured him the Rookie of the Year trophy. All-in-all, the 2015 season was an outstanding one for the Toowoomba speedster. “At the start of the season we were hoping that we could get a top three finish and maybe Rookie of the Year,” said Will. “That was our goal and we ended up achieving it. “We knew it was going to be hard to come first or second. The guys that took the top two spots – Jordan Lloyd and Thomas Randle – have been racing longer and with their experience you could see they were a little ahead of the field. But to finish ahead of the other rookies and other guys was very good. “We went into the last round of the season in fifth place in the championship and coming into the very last race, myself and Harry Hayek were tied for third. Luckily, I was able to finish third in the race and get the points.” The reward for taking third spot is a significant one. Along with a
Sponsorship details are available on www.willbrownmotorsport.com
2015 F4 CHAMPIONSHIP RESULTS 1 2
Jordan Lloyd Thomas Randle
441 386
3 4 5 6 7 8 9 10
Will Brown Harry Hayek Jimmy Vernon Luis Leeds Nick Rowe Tom Grech Zane Goddard Francesco Maiolo
216 207 197 183 140 89 81 67
Paul Tugwell is all smiles as he prepares to take the Tesla P90D for a spin
The Tesla's massive 17-inch screen control panel
MTA INSTITUTE TRAINER TAKES NEW TESLA MODEL FOR A SPIN A CAR THAT can go from 0-100km/h in three seconds, use no petrol whatsoever, park itself, drive itself, receive upgrades via wireless connectivity, be luxurious inside, look smart from the outside . . . the Tesla S P90D is all that and more. And MTA Institute trainer Paul Tugwell got the chance to experience the Tesla first hand when he took the car for a test drive through Brisbane. As a trainer on hybrid and electric vehicles, the test drive was more than just a bit of fun for Paul it was a chance to see just how far the top-end of electrical vehicles have come. And they have come a long way. The all-electric, all-wheel drive P90D has all manner of technology - inlcuding sensors, radar and cameras - to allow near-autonomous driving and parking, while dual electric motors, one in the front and one in the rear, allow for superb traction control and, when the control system is set to 'Ludicrous' mode, astonishing speed and power. "The car is absolutely fantastic," said Paul. "The handling was tremendous and when we put it into autopilot it drove itself. Though the rules currently say we have to have our hands on the steering wheel, it was driving itself - going round corners, picking up the correct speed and spotting obstacles. I only touched the brake pedal maybe three times on the whole drive! The Tesla is seriously quick too, able to go from 0-100km/h in less than 3 seconds. "We were stopped at traffic lights, I put it in Ludicrous mode and the guy from Tesla said 'Gun it!'," said Paul. "By the time I got to the other side of the lights I was doing 100km/h. My wife was in the back and her glasses went flying. Even drag car racers aren't going to be used to this!" With a range of more than 500km when fully charged, and charging stations growing in number and free to use, Tesla vehicles, even given their hefty price tag, are going to become more numerous on our roads. Paul, for one, is a fan. "It is absolutely fantastic. If I could afford one I would get one! This is the future."
February 2016 Motor Trader | 29
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Photos: Jack Atley
race in Formula Ford this year too. That is also a great class to race in - it keeps your reflexes and your race craft nice and sharp. And on top of that, we also have the V8 car test and may look at testing with the Dunlop series.” In the meantime, as he waits for the racing season to start, and to keep himself busy between meetings, Will has started work with Cars Galore, the car dealership owned and run by his family. Working with his mum Leanne, and dad Shane, has a number of benefits – not least of which is that when race meetings come around, he has understanding bosses who are happy to give him a few days off. “I’ve always enjoyed being around the car yard so I’ll work here for a while,” said Will. “I’m learning about buying and selling cars, detailing – a bit of everything. Mum’s even teaching me a bit of the paperwork!” However, though he has an interest in the automotive business, Will is unlikely to ever be diverted from his passion for the race track. “I like cars,” he said with a smile. “But I’m a driver.”
M E M B E R S
guaranteed test drive with one of V8 Supercars’ top teams, $25,000 was also up for grabs – a sum that will now go towards the leasing of a Formula 4 car for the 2016 season. For a season full of highlights, including a glamorous Sydney awards night out, it might be a bit tricky to pick one stand-out moment. “The first race was up there. To win the first ever Formula 4 race in Australia was great,” said Will. “However, I do like to have a good battle on the track, so the race at Sydney Motorsport Park was one of my biggest highlights - I had a great battle with Luis Leeds there. In fact, I had a great on-track rivalry with him all season. We’re great mates but for some reason we always seemed to find each other on the track. Every meeting we seemed to find each other during the races! “Another highlight was racing at Phillip Island. That track is amazing and the racing was awesome. If you watch any of the races from Phillip Island they are great races with passing manoeuvres every two seconds it seemed. It’s my favourite track.” With the 2016 Formula 4 season due to start in April, Will has signed up to race for the BRM team - the team for whom championship winner Jordan Lloyd raced in 2015. Though that connection bodes well for the year, there is still the perennial issue which all drivers must face – sponsorship, and there are also other championship categories, and other racing avenues, which Will plans to pursue. “We are looking to secure some sponsorship for the season," said Will. "Securing sponsorship will ensure we race again through the year. “As well as Formula 4, I will likely
The hit list Maybach Exelero
MAYBACH EXELERO (2005)
CONCEPT CARS
OF THE
2000s
B
Y THE TURN of the century, the automotive industry had recognised that the world around it was changing. Issues such as the price of fuel, vehicle safety, climate change, and the effect these had on the tastes and demands of the consumer, were a major factor for manufacturers as they considered their next move. Consequently, electric cars, hybrid vehicles, alternative fuels, alternative construction materials and the potential of autonomous control
BMW GINA
had all become serious and important fields of research. Happily, technological development and environmental considerations didn’t stop car designers from creating stunning-looking machines. And there was still enough of a demand to see cars that not only looked like they were quick but actually were as swift as they looked. So, stuffing a monstrous engine that could generate some truly teeth-shattering grunt was still the power source of choice. Here are just a few of those cracking concepts.
AN INCREDIBLY POWERFUL high-end luxury sports coupe, the Maybach Exelero was powered by a 5.9-litre 12-cyclinder 700hp biturbo engine that could drive the car past the 350km/h mark. Designed to reflect the Maybach ‘streamlined’ models of the ‘30s, the Exelero was built as a one-off test bed for tyre manufacturer Fulda to research its high-speed products.
BMW M1 Hommage
BMW GINA (2008) ANOTHER CRACKER FROM BMW – this time with a design that really was unique. A two-seater roadster, the GINA dispensed with the standard exterior body materials. It had instead an almost seamless outer skin - a flexible textile cover that stretched across a moveable metal substructure. This made for some interesting and innovative features, including gaining access to the engine through a slit in the fabric ‘bonnet’ and even offered the ability to change the shape of the exterior.
Audi Rosemeyer
AUDI ROSEMEYER (2000) SHOWN AT MOTOR shows throughout Europe in 2000, the Audi Rosemeyer was named after Bernd Rosemeyer, a German driver who, in the 1930s, raced for Auto Union – the name given to the group of four automotive firms that would go on to form Audi. The ‘Rosemeyer’ was designed to reflect the look of those 1930s racecars and was powered by an 8-litre, W16, 700hp engine that pushed it to a 350km/h top speed.
MAZDA TAIKI (2007) THE TAIKI WAS one of a series of Mazda concepts grouped under the ‘Nagare’ (flow) design theme – a theme that carried across 5 concept cars. Apparently designed to suggest flowing robes, the two-door coupe Taiki was a beautiful machine with an extremely low drag coefficient. It was powered by a next-generation 1.6-litre rotary engine.
Mazda Taiki
BMW M1 HOMMAGE (2008)
Dodge Tomahawk
BMW BUILT THE beautiful ‘Hommage’ to commemorate the 30th anniversary of the equally stunning M1 – the rare 3.5-litre, 6-cyclinder, mid-engine supercar that wowed the public when it appeared in the late ’70s. Only a design study, the ‘Hommage’ was a marker for the future direction of BMW’s car designs and its influence can be most clearly seen in the exquisite all-electric i8 supercar.
Maserati Birdcage
MASERATI BIRDCAGE 75th (2005) ANOTHER CONCEPT CAR designed to honour the past, the 2005 Maserati Birdcage 75th commemorated both its stunning namesake of the ‘60s – the Tipo 61 racing car – and the 75th anniversary of the founding of the company behind its creation, Pininfarina. With a lightweight carbon-fibre body built on the chassis of the Maserati MC12 racecar, the Birdcage 75th had, instead of doors, a bubble canopy that was raised for entry and exit, and was a powered by a 6-litre, V12 mid-mounted engine pumping out 700hp.
DODGE TOMAHAWK (2003) AMONGST THE MORE amazing concepts of the early 2000s was this monstrous machine courtesy of Dodge. Described as a ‘mechanical sculpture’, this four-wheel, single passenger bike was a unique beast – an example of some extreme engineering and obsession with power. With a 500hp 8.3-litre Viper V10 engine stuffed into its frame the Tomahawk could, theoretically, nudge 480km/h and reach 100km/h in 2.5 seconds.
February 2016 Motor Trader | 31
Investment matters
MARKET WRAP
D
ECEMBER DELIVERED MIXED results as the market sold off into the US Federal Reserve’s interest rate hiking decision mid-month. This then gave way to a Christmas rally, albeit on relatively low turnover, which saw the market rebound into the end of the year. Domestically, the federal government released the Mid-year Economic and Fiscal Outlook (MYEFO), projecting larger deficits for FY16 with the budget now forecasted to be back in surplus by FY21. Commodity markets continued to be under pressure, in particular Brent crude oil fell to US$35.75 a barrel, driven by weak demand and concerns around the increasing supply. It has been a volatile year for equities, with the market ending the year up +2.6%. The low interest rate environment continued to drive investors' thirst for yield, as the market raced ahead during the first four months. However, concerns surrounding China, falling commodity prices and bank capital raisings all dragged the market lower over the next four months, as it retraced most of the early gains. The market did rally towards the end of 2015, as we saw the first US interest rate hike in nearly a decade. The start of 2016 has seen market volatility increase with the ASX200 pulling back to levels last seen in 2013. Soft Chinese manufacturing data and a devaluation of the yuan has sent shock waves through global markets with fears that the Chinese economy may be in a much weaker state than previously thought. These fears have flowed through to equity and commodity markets with steep falls across the board. Compounding the size of the moves has been the lack of market
32 | Motor Trader February 2016
activity given January is traditionally a low month for volumes. While the soft manufacturing data has direct implications for the Chinese economy, the decision to devalue the yuan has more global implications. By devaluing their domestic currency, the Chinese government is trying to stimulate the manufacturing sector. Such currency adjustments impact all of China’s trading partners. Given the importance of the Chinese economy to global trade, the concern is that this has the potential to drag on the economic growth of China’s trading partners. China is a significant trading partner to Australian and so any weakness will impact the Australian economy and in particular, the commodity sector. Major miners such as BHP are trading at 10 year lows reflecting the expectation that commodity demand and prices will remain lower for longer. More generally, stocks with any direct exposure to China have also been sold off as investors look to offload any China exposure they can. Domestically the economic data has actually been quite strong with retail sales over Christmas looking reasonable and recent unemployment data continuing to show positive signs (Unemployment under 6%). Job creation in the services sector continues to be a standout with the falling A$ stimulating tourism and manufacturing. The housing market has definitely cooled in the last 6 months, however approvals are still well above average and there has been no sign of significant price weakness or settlements not being completed. Overall, while global issues will impact the Australian economy, we are generally still seeing solid economic
data suggesting that the outlook remains positive. In the event external forces do start to impact the Australian economy, the RBA is one of the few central banks that does have room to stimulate via cutting rates. The Australian fiscal position is also robust and the new coalition leadership team does seem more open to fiscal stimulus in the event the economy softens meaningfully. Outside of the commodity related stocks, we have been using the volatility to increase our exposure to some high quality businesses which have been sold down along with the rest of the market. We will continue to search the market trying to find more opportunities to buy quality businesses that are over sold. At the same time we recognise that the global environment is volatile and we will continue to monitor the situation and should our assessment of the situation change we will look to adjust the portfolio accordingly. DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Investment in a DNR Capital individually managed account can only be made on completion of all the required documentation. 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.
Industry insight
10 KEY NUMBERS FOR A BETTER RESULT THIS YEAR H OW HAS 2016 ‘kicked off ’ for you so far? Did you come back to work after Xmas feeling refreshed and energised, with plans to start afresh and create better financial performance in 2016? Did you use the New Year as an opportunity to take a ‘helicopter view’ of your business and formulate a business growth plan to achieve better profit, cash flow and efficiency? If the ‘usual stuff ’ took over, don’t despair, there is still time to do a review and plan a better result. Here are the key factors we would recommend you review for small business growth: 1. Income – what can you do to improve it? What are your KPIs (Key Performance Indicators) impacting income? Can you capitalise on modern marketing methods e.g. digital marketing? What are the key drivers to achieve sales numbers in your business? Imagine you are away from your business for several months – what are the five or six key numbers you would want to know to ensure things are on track. 2. Pricing – have you reviewed it recently? How does it compare to your competition? How does your product/service compare to theirs? Some customers may be prepared to pay more for better quality. If your product/service is better, tell the market ‘make the invisible visible’ let them know why yours is so good! A small price increase can have a massive impact on your bottom line (sometimes much bigger than increased sales volume!) 3. Cost of Goods (COGs) – what are they and how are they different from Overheads? COGs are the costs directly associated with your product/service e.g. service labour and materials, product purchase,
freight inwards, customs etc. How can they be more cost effective and efficient? Think ‘Productivity’. A small percentage decrease in COGs can have a massive impact on your bottom line (sometimes much bigger than increased sales volume!) 4. Gross Profit – the result of your income less COGs. Check out yours compared to others in your industry by percentage. Percentage is the easiest and most accurate way to do the comparison. 5. Overheads – always a good place to find savings, efficiencies and modern ways of doing things. There could be tens of thousands of dollars in savings lurking here. A budget entered into your accounting system will go a long way to ensuring these don’t get out of hand. 6. Net Profit – the result of your Gross Profit less Overheads. Check out how yours compares to those in your industry by percentage. Are you getting a good enough return for your efforts? 7. Accounts Receivable – there are many factors affecting how long customers take to pay – from how/ when you invoice them to how/ when they pay up. Find ways to speed it up. See our E Book ‘How to Get Customers to Pay On Time’ at www.CFOonCall.com.au 8. Accounts Payable – on the other side of the ledger - how can you find ways to stretch your terms with suppliers without damaging relations? Improve terms in your favour. Take advantage of the maximum terms offered by suppliers – don’t pay early unless you’re offered incentive to do so. Perhaps shop around for better terms with other suppliers. If you are a good customer your current suppliers might be more amenable to longer terms.
9. Work in Progress – i.e. jobs in progress that haven’t been invoiced to customers yet, including labour and materials. A sure way to improve cash flow is to find ways to speed up finishing jobs, so they can be invoiced. Also, reducing rework and any excuses for customers not to pay for finished work. Improve profit on jobs with focus on labour productivity and materials management. Have a look at your staff utilisation and recovery rates. Ask yourself ‘Am I selling all the hours I am paying for?’ What is the opportunity cost of inefficient practices that take up time of billable staff? 10. Stock management – think of stock as dollar bills piled up on the stock room floor. You want it sitting there for as little time as possible i.e. enough for customers’ needs, but not too much to suck up precious cash. Can you set up processes to reduce the time stock sits in stock? If these suggestions have peaked your interest and you would like to maximise profit and cash, why not download our ‘White Paper’ ‘The Guaranteed to do Better This Year Checklist’. It contains 46 ways to achieve profit improvement and better cash flow this year. As always, if you need small business finance management help, it costs nothing and there is no obligation to chat with us. If you’re committed to a better outcome this year, contact us. To help you further with financial management in tough times, please feel FREE download our E Book ‘7 Simple Ways to keep your Business Sustainable & Good to Grow’. http://www.cfooncall. com.au/7-simple-ways-to-keep-your-businesssustainable-good-to-grow
February 2016 Motor Trader | 33
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MTAA SUPER – the preferred choice of over 40,000 businesses Simplified super administration Support of local business development managers 2015 Medium Fund of the Year
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mtaasuper.com.au This document is issued by Motor Trades Association of Australia Superannuation Fund Pty Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited. The information provided is of a general nature and does not take into account your specific needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.