Motor Trader July 2014

JUL 2014

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MEMBERS CLASSIC: 1967 MUSTANG GT FASTBACK

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

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Contents Official Publication of the Motor Trades Association of Queensland

Follow us on Facebook www.facebook.com/MTAQueensland

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

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EDITOR Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Michelle Chadburn POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Emily Metelmann 07 3237 8784 Facsimile: 07 3844 4488 Email: emilys@mtaq.com.au EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777 SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually MOTOR TRADER PUBLISHING POLICY Motor Trader is the official publication of the Motor Trades Association of Queensland. The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry.

The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.

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30 02 From the editor 04 Policy/Viewpoint 06 Divisional news News 07 ICONIC BUILD NUMBER “351” GT F SEDAN

MTA QUEENSLAND ABN: 74 028 933 848 CORPORATE PARTNERS

16 Members Classic ALL AMERICAN MUSCLE:

1967 MUSTANG GT FASTBACK

MEMBERS ESSENTIALS

19 Training matters 14 SIR JACK BRABHAM: A FITTING FAREWELL 23 Members matters

TO A RACING LEGEND 26 Member profiles 15 AADA CONFERENCE TO INVIGORATE 28 Industrial relations

GOES TO GOLD COAST CUSTOMER

INDUSTRY

08 MTA Q&A LEON AND MILES DELCAMPO:

20140163

BRIDGESTONE SELECT

Feature 10 BRIAN JOHNSON: THE NEED FOR SPEED

29 Investment matters

MARKET WRAP

32 Industry insight

HOW TO BE SURE YOUR BUSINESS IS MAKING MONEY July 2014 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

H

ELLO AND WELCOME to the July edition of Motor Trader magazine.

In our feature this month, MT talks to rock royalty Brian Johnson, front man for iconic Aussie group AC/DC and renowned and committed petrol head.

Music may be the way he makes his living, but cars, and particularly racing them, is as close to Johnson’s heart as charging round a stage belting out the ACCA-DACCA classics.

MT talks to the rock music heavyweight about his car-centric TV show, Australia, his love of racing and the soft spot he holds for Holden and Ford.

In our Members Classic section this month we talk to Jack Beedham, from Jack Beedham’s Exhaust and Brake Centre in Redcliffe. A fan of classic

American cars, Jack’s pride and joy is the majestic 1967 Ford Mustang GT Fastback you can see on Page 16.

In MTA Q&A we sit down with Leon Delcampo from Bridgestone Direct in Nerang. The businessman from South Australia has owned and run successful sports, surf and toy stores, but a geographical move to Qld has led to a move into another sort of retail business altogether. MT talks to Leon and son Miles about the bold move into the tyre business.

The Australian Automotive Dealers Association (AADA) is holding its annual convention on the Gold Coast in July. A forum for Dealers to discuss and debate the important issues surrounding their industry, the convention will also be the place where AADA will announce some important initiatives, not least of which is its partnership with the National Automotive Dealers Association (NADA) of the US. AADA will formally announce it is to be a provider of NADA University courses to Australia.

NADA University is the training arm of NADA and is the retail automotive and truck industry’s most comprehensive source for industry specific education.

Extremely highly regarded, the programs that will be made available through AADA are a significant step –

SAVE THE DATE THE ANNUAL PRESIDENT’S BALL IS THE HIGHLIGHT ON THE AUTOMOTIVE INDUSTRY’S SOCIAL CALENDAR. THIS PRESTIGIOUS BLACK-TIE event will be marketed to all MTA Queensland members, clients and stakeholders and is expected to sell out.

The evening will feature dinner, entertainment and dancing and will include an awards ceremony recognising the best and brightest trainees and apprentices at the MTA Institute of Technology.

Date: 1 November 2014 Time: 6:30pm - 11pm Venue: Hilton Brisbane

2 | Motor Trader July 2014

bringing to the Association’s members the best educational programs available.

Also this month, we announce the winner of the Qld Great Endeavour Rally competition.

Jesse Adams, a fourth-year Light Vehicle apprentice from Nambour, scooped the fantastic prize and will now be a member of Brisbane Motor Auction's Mobile Rally Workshop Team.

He will spend eight days working with the team, keeping participants moving as they charge through Qld’s outback in support of the Endeavour Foundation. Congratulations Jesse!

As always, we will endeavour to bring you news and insight into the automotive industry, the most up-to-date information regarding training opportunities and, of course, continue to highlight members’ interest with MTAQ&A and Members Classics features.

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

Cheers,

Jonathan Nash jonathann@mtaq.com.au

mtaasuper.com.au

An Industry SuperFund

THE INDUSTRY SUPER FUND FOR THE AUTOMOTIVE INDUSTRY.

Follow us on facebook: MTAA Super Pathways for news on careers and employment.

Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238 718) is the Trustee of MTAA Superannuation Fund (ABN 74 559 365 913). You should consider whether or not MTAA Super is appropriate for you. The MTAA Super Product Disclosure Statement (PDS) can be obtained by calling us on 1300 362 415. You should consider the PDS in making a decision.

Policy/Viewpoint

KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

T

HE LATE SIR Jack Brabham’s State funeral was a celebration of his life. MTA Queensland and MTA Institute of Technology (MIT) members and staff were amongst the hundreds of Australians to pay respect to the legend.

Sir Jack has a special place in our hearts and our Association’s and MIT’s home. Our headquarters proudly carries his name, the Sir Jack Brabham Automotive Centre of Excellence. In October 2012, Sir Jack, with his family, honoured us with his presence, mingled with the guests, staff and students.

That day is imprinted in the special pages of our history, as does Sir Jack’s contribution to the sport of motor racing and the automotive sector in general.

I am sure many of our MIT students aspire to follow in his footsteps.

On behalf of MTA Queensland members and staff, I extend sympathy to Lady Margaret Brabham and her family at the passing of Sir Jack.

END OF THE FINANCIAL YEAR

The end of the financial year means tax time. It also causes me to take stock of our role in supporting and working for you, the Member. Our patient consistency and advocacy to both the Federal and State Governments on behalf of Members has resulted in measures implemented that benefit the motor trades. These range from red and green tape reduction and the introduction of the Green Stamp Program and the 4 | Motor Trader July 2014

Motor Vehicle Workshop Code of Practice, to standalone legislation, to changes in consumer law, to outlawing of exorbitant petrol dockets, etc.

Industrial relations is one area in which we would like policy changes.

Regardless, Members are assured of high quality and relevant advice from our industrial relations team.

The achievements are an endorsement of the value of being a Member of the MTA Queensland. I must mention our staff, from the front to the back office, have one priority, and that is to meet the needs of you the Member.

Turning to the issue of preparing the tax return. The Australian Taxation Office (ATO) has released the areas that it will focus on the coming financial year. Its watch is on persons who, due to their occupation type, claim a deduction for using their computer, mobile phone or other electronic device. That means the net is cast widely and over many businesses, occupations and taxpayers.

The ATO said that $19.5 billion of work-related expenses were claimed each year, of which electronic devices were a predominant share of technology uses. The advice is that the ATO is using increasingly sophisticated technology which enables the ATO to look at every single tax return to check deductions and then track down unusual or excessive claims.

Additionally, the ATO is focusing on work-related claims around travel expenses, and people who transfer bulky tools and equipment between home and work. Guides for specific industries and occupations may be accessed at the ATO website ato.gov.au/occupations.

TAX AND SMALL BUSINESS

Members know that tax compliance is costly. Recent research from the Institute of Chartered Accountants Australia indicates that tax compliance is costing the 1.7 million Australian businesses in the small to medium sector $18.4 billion every year. That is not tax payments- it is tax compliance.

The Institute’s latest tax research confirms that business size remains the single most significant predictor of tax compliance costs. The results indicated

that the average gross tax compliance cost for small to medium businesses is about $11,000 per firm per year.

Technology is changing business administration. According to the Institute, many small businesses owners are tech-savvy. Technology has made interaction with agencies such as the ATO faster and more efficient, enhanced data collection and analytics enables the ATO to develop better risk identification techniques so that compliant small businesses are identified and left alone

by ATO audit teams.

The Institute is of the view that the government and the ATO need to take account of the compliance costs of technological solutions and provide greater encouragement for small business to embrace current programs such as Standard Business Reporting.

LUXURY CAR TAX

Referring to the ATO, Members are advised that it has released the Luxury Car Tax Determination for 2014/15.

This refers to the Luxury Car Tax (LCT) threshold and the fuel-efficient car limit. The LCT threshold for the coming financial year has increased from $60,316 to $61,884. The fuelefficient car limit for the 2014-15 financial year remains at $75,375.

This determination applies to the financial year commencing 1 July 2014.

NEW MOTOR VEHICLE SALES

New motor vehicle sales for May were again slow. The Australian Bureau of Statistics (ABS) Sales of New Motor Vehicles indicates that compared with the previous month (seasonally adjusted) new car sales were 18,641, down by 2.1 per cent or 834 units. Four of the Australian states recorded declines.

Overall, nationally, there was a small increase of 0.3 per cent.

According to the respected Federation Chamber of Administrative Industries VFACTS, on an original basis, total sales for the 12 month period ending May were 90,393 units. This was 4.4 per cent or 4,128 units less than for the same period ending May 2013.

We have some ground to make up.

Looking on the bright side of the

new car market, June is always the biggest month of the year for new-car sales. Generally, it is the time buyers are looking for bargains and if the market reports are correct there will be discounts available on popular models.

Nationally, the sales of new motor vehicles for May indicated that business purchases declined significantly with total business sales down 9.1 per cent.

Government purchases continued to rise, increasing 5.9 per cent. Private sales grew by 1.6 per cent.

STATE BUDGET

I was in the State Budget “lock up” with other industry representatives to hear and see firsthand the Budget strategy and priorities. The general view in the room was that it was a “good Budget”. It was welcomed by business and industry with its focus on future economic growth and restoring the financial standing of the budget. Undoubtedly, it was framed under the challenging circumstance of accumulated debt and Commonwealth government cuts.

It certainly was not an “election budget” without any extra incentives for business. In our pre-budget submission we sought no increase in state taxes and fees. We were pleased that this was assured for the coming year particularly in the face of rising power and water charges.

Significantly, the Budget indicated that Government has reduced expenditure growth to 1.2 per cent across the last three years. This is quite a feat, when compared with the previous trend of growth in General government expenses growing on average at 8.9 per cent in the decade to 2011-12.

The forecast deficit of $2.3 billion for 2014-15 was a surprise, being four times worse than predicted. The expectation is that there will be a fiscal surplus in 2015-16, the first in a decade assisted by the completion of LNG projects and the production and export of LNG beginning.

The Budget papers confirm the government’s action plan to pay down the state’s $80 billion debt through private sector equity investment and asset privatisation. That is one part of the strategy, but we need to know too the potential consequences on prices and services of the privatisations. In the coming weeks, I expect, we will hear much more.

ECONOMY

Economic news has been gloomy on the back of the Federal Budget. I was relieved to see a few recent economic reports and statistics indicating that consumers are beginning to shrug off the pessimism with the Federal Budget.

The reality of continuing record low interest rates and strong jobs data provided the better outlook and confidence. The Reserve Bank, for the tenth month in a row, left the cash rate at the all time low of 2.5 per cent and there is no indication that they will rise in the near term.

A new Deloitte Retail Forecasts report provides an insight into the predicted consumer spending of Queenslanders. It indicates that if the Reserve Bank keeps interest rates on hold until 2015 the expectation is that there will be “healthy rates of retail growth” for the next financial year.

The improvement in new jobs created, contributed to the improved outlook.

Over the longer term, the prediction is that Queensland retailers can expect improved trading conditions over the next two to three years.

POLICY

As said in the June Viewpoint, I was preparing a submission in response to the Competition Policy Review Issues Paper. Undoubtedly, it has been a predominant policy matter with 134 responses that included industry organisations, corporations and individuals. These submissions may be accessed at http:// competitionpolicyreview.gov.au/ issues-paper/submissions/. This is the Australian Treasury website.

Our response, as is all our submissions, was from the perspective of the Divisions that comprise the MTA Queensland. Our document is on both our and the Australian Treasury’s website.

In summary, we made four key points: • In the case of SMEs, the dominant issue is having a statutory framework that ensures equity and a balance between business to business transactions in the market, and provides recourse where anticompetitive behaviour causes economic injury; • A need to redefine what constitutes small to medium business. To date the emphasis has been on absolute definitions based on scale. We strongly

support the adoption of one based on relativity. That is an enterprise, irrespective of its size, that can be subjected to unconscionable behaviour or injured by improper imposition of economic or market power in a business transaction with another enterprise, should be considered a small to medium enterprise relative to which it does business. (E.g. if a $100 million enterprise is doing business with a conglomerate such as BHP Billiton, the $100 million enterprise is a small business relative to this relationship.)

• The recognition that SMEs are ‘consumers’ when dealing with a larger business and should be accorded protection in these situations. The foreshadowed legislative reforms to business to business standard form contract provisions relating to unfair terms and conditions are important as they will confer the rights of a consumer on small business.

• Equity for SMEs is dependent on recourse to Competition Policy in circumstances where they have been subjected to unconscionable behaviour or market or financial power, and are likely to suffer economic injury. It is important therefore, that legal precedents or statutory definitions are established if the framework is to effectively operate in a judicial or administrative environment.

At present I am working on another submission. This is ‘Extending Unfair Contract Term Protections to Small Businesses consultation paper.

As indicated in June’s Viewpoint, Member’s input would be valued.

To preview the paper it may be accessed at www.treasury.gov.au/ ConsultationsandReviews/Consultations.

AN ACHIEVEMENT - DEHP APPROVAL OF MOTOR VEHICLE WORKSHOP CODE OF PRACTICE

Since the abolition of the Environmental Relevant Activity (ERA) 21 and its associated compliance obligations and fees, we have been working, as a stakeholder, with the Department of Environment and Heritage Protection (DEHP) to achieve a Motor Vehicle Workshop Code of Practice. On 13th June, the DEHP

July 2014 Motor Trader | 5

Policy/Viewpoint Director General Jon Black advised that it had been approved. This is a significant achievement for Members.

I remind that the abolition of ERA 21 does not absolve them of the compliance requirements under the Act hence the relevance of the Code of Practice.

SERVICE STATIONS AND ABOLITION OF ERA 21

Our Service Station and Convenience Store Association (SS&CAQ) Members have raised with me that some Local Governments have been auditing businesses under the requirements of Environment Protection Act (the Act).

In a recent meeting with Caltex, the representative indicated that operators had raised similar issues with their sites as experienced by SS&CAQ Members.

Caltex indicated they would “approach DEHP to work on developing a Code of Conduct for Service Stations” that could be used as a compliance document similar to the Code we developed for Mechanical and Panel (motor vehicle

workshops). I advised we would be a keen stakeholder in the process.

VISIT TO FAR NORTH QUEENSLAND

In my last Viewpoint I said that I was preparing for the visit to Cairns on May 29 for the General Meeting and the Australian Automotive Dealers Association (AADA) meeting at Mareeba the following day. I was accompanied

by Divisional Executive Andy O’Hearn who is responsible for the area and Vice Chairman and Far North District Board Representative Steve Eaton.

It was a pleasure to attend these well attended meetings of Members representing the motor trades in the region. There was stimulated open discussion on the agenda items and the industry value chain. It was one of the best displays of Member participation we’ve attended.

The AADA meeting with Members was over an enjoyable breakfast.

Issues under discussion included the transition to our standalone new Motor Dealers and Chattel Auctioneers Act

Divisional news Ben Chesterfield NACA

The end of the financial year is upon us and it is a good time to set some new targets. I look forward to any ideas that you may have as an initiative for us to work on within this division.

It seems like only last week we were all speaking about the shift with insurance companies and their selected repairer contracts, and now they are all pretty well finalised and settled.

I believe RACQI will be making their announcements soon.

We are continuing to receive a lot of enquiries relating to Green stamp audits and shop grading which is good to see, so please keep them coming.

A list of our members who have achieved Green stamp status will be published in an upcoming Motor Trader.

6 | Motor Trader July 2014

We hope to launch the shop grading officially in the next few weeks and would love all of you to participate.

We have signed a few more new members to this division. Committee nominations have also been finalised and we will have some new faces to introduce soon.

A trade night for scan tools is being arranged in the next couple of weeks. Please keep an eye out for this invitation.

My next newsletter is underway and will be out in the next couple of weeks, so keep an eye out for it in your mailbox.

ERAQ

We don’t have much to report this month for ERAQ, however the conference details were sent out to all members recently with a link for those who would like to attend and/or

and AADA’s national profile and its advocacy of Member’s issues.

Most rewarding was the feedback that Members found the meetings informative in terms of their respective businesses, and suggested a return visit by the end of the year. We committed to do this.

NEXT VISIT

Mount Isa is the next visit on the schedule. We will be there on Tuesday 13th August for the General Meeting.

I do look forward to this and the opportunity to meet and speak with Members in the north-west.

SPECIAL DATES

The Australian Automotive Dealer Association National Convention will be held at the RACV Royal Pines Resort from Thursday 10 to Saturday 12 July 2014.

Public school holidays are from 29th June to July 13th July. I am going to have a break with family at the snow.

Until next time, drive carefully and take care.

with Ben Chesterfield and Ian Cole participate. The dates are 25-28 Sept at the Grand Chancellor on the Gold Coast with a day of shop tours being arranged.

If anybody would like the email resent please make contact and we will arrange that for you.

AED

I’m sure we have seen some huge changes within our industry over the past 12 months. Work is quiet for a lot of our independent repairers. However, those who have marketing strategies in place and a loyal customer base seem to be doing ok.

As mentioned previously we are working on a marketing flyer, which is nearing completion, and once it has been given the all clear it will be available for all of you to use within your own businesses.

Committee nominations have been

News BUILD NUMBER “351” GT F SEDAN GOES TO GOLD COAST CUSTOMER A GOLD COAST man is celebrating after securing build number “351” in the limited run of FPV GT F sedans.

After announcing that the final FPV model would have the most powerful and advanced engine ever built by FPV, with a 351 kilowatt version of its famed supercharged 5.0-litre V8 engine, dealers were swamped with requests to secure the “351” build number.

The “351” nomenclature of the FPV GT F pays homage to the 351 cubic-inch 5.8-litre V8 engines that made the Ford Falcon GT such an iconic performance car in Australia in the 1970s.

Ford offered FPV customers the opportunity to request their preferred build number through their dealer.

The large majority of these requests

finalised and it is good to see that we have some new faces on the committee.

I would like to thank the outgoing committee members for their years of service to this division.

I would like to remind you about the abolition of rego labels which is getting closer. For those who aren’t yet using the Queensland Transport link, start doing so as it has some massive benefits.

A trade night for scan tools is being arranged in the next couple of weeks, so please keep an eye out for this invitation.

I look forward to any ideas or initiatives that any of you may have to help the cause for the independent repairers.

Feedback from our member base shows there are still challenges for the industry that need to be addressed.

Again I will bring to all ARD members' attention the importance of the Dob in a Backyarder portal on the MTAQ website and encourage all members to use it to report details of unlicensed trading.

I would also remind members that the MTAQ logo and Code of Ethics is available on the MTAQ website and recommend that these tools be used not only on your company website but also with any advertising.

We have also recently sent a bulletin regarding new privacy laws which came into effect in March.

Ensure you are familiar with the bulletin and where your business is in relation to these laws.

Ian Cole ARD

Thanks to all members attending the ARD meeting on June 11.

were fulfilled. However, when it came to perhaps one of the most iconic numbers, “351”, Ford decided to conduct a random draw to allocate this prized build number.

Gold Coast dealer Sunshine Ford drew FPV GT F number 351 in the ballot, and quickly allocated that car to a very happy customer, who wished to remain anonymous.

“We could probably have got a lot of money for the car on the open market but we are absolutely about rewarding loyalty, to the brand and to the dealership,” Sunshine Ford General Sales Manager, Ross Tanner, said.

“The lucky recipient has been a fantastic long-time customer of ours, he’s bought a lot of vehicles from us, and he’s a genuine FPV enthusiast. He absolutely loves the brand, loves the cars and was beating my door down to make sure he got one of these final models.

“He’s even got himself the Queensland registration GT351F to go on the car.”

Just 500 of the FPV GT F sedans will be built for the Australian market, each one individually numbered.

Alongside the GT F sedans, a refreshed FPV Pursuit ute will also be released. Ford is building 120 Pursuit utes.

TUDQ

Committee nominations are now closed and we shall see in the coming weeks the composition of the new TUDQ committee.

I look forward to working with the new committee.

QMID

Thanks to all members who responded to the Motorcycle discussion paper released by the QLD Government on May 22. The issues in this document impact directly on your business and your response is important for the future of the industry.

Committee nominations for QMID are now closed and I would like to thank all members who nominated and look forward to your participation in the division in the future.

July 2014 Motor Trader | 7

QA

MTA &

MT: What is your background?

LD: I was raised in country South Australia. I did a boiler-making apprenticeship but my wife and I decided we should start our own business. We started with a toy business and, eventually, we had two Toyworld stores as well as a sports store and a surf store. We still have the sports and surf stores but we sold the toy stores a few years ago.

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

LD: About 18 months.

Leon and Miles Delcampo

MT: Why the tyre business?

LD: I had looked at buying into the industry some years ago but decided that it wasn’t for me at the time. When we came here to the Gold Coast I was looking for a business to set up to keep myself busy. The Bridgestone business came up so I pursued it. I don’t have a background in automotive so I suppose this was a bit of a curve ball. However, retail is retail and in that sense it is very familiar. But, at the same time, tyres are unique in the sense they are not a purchase that people necessarily like to make. Having said that, they are a critical purchase for motorists and, with a globally recognised and trusted brand such as Bridgestone behind it, this seemed like a good opportunity.

MD: I was doing property development at university but pulled back from that. I’m still interested in it and am currently buying a property, but it’s a side project. I’ve always liked cars and it felt natural to want to be in the industry. When dad was looking at different business options this one sounded like the best.

Leon Delcampo is a South Australian with retail store interests in surfing and sporting goods who has also run two toy stores under the Toyworld banner. Now living on Queensland’s Gold Coast he has branched out into a new venture - tyres. MT talks to the successful businessman who, along with son Miles, runs the Bridgestone Select store at Nerang.

MT: What is your biggest selling tyre?

LD: We do very well with 4WD tyres - the Dueler is probably our biggest seller. We do well with our low rolling resistance Ecopia tyre for smaller vehicles too. The young lads tend to go for performance tyres from our Potenza range. They want tyres with as much grip as they can get, as wide as they can get and as low profile as they can get. For the general motorists though, as long as the tyre is safe and is going to give everything they ask in terms of wet weather grip, comfort and durability, then they’re happy. We try and help them out as best we can - try and get them the best suited tyre at the best value for their style of driving.

MT: What services, other than tyres, do you provide?

LD: We do auto servicing, clutches, suspension, brakes and we’ve also done engine overhauls – so the servicing side of things is certainly something we’re concentrating on.

We’re actually in the process of putting in a couple more hoists as the mechanical side of our business grows so that we can continue providing our customers with a great service.

MT: How many staff do you have?

LD: I have four staff - two wheelaligners and fitters, a tyre fitter and a mechanic - plus myself and Miles.

We’re also after another tyre fitter and another mechanic. I try to find staff who are experienced in the industry.

Bridgestone offers excellent training - for instance, we have to be accredited

by Bridgestone to fit run-flat tyres - but generally we just try to nurture the staff to get them into our way of

“IF YOU WANTED TO GET INTO THE TYRE INDUSTRY, BRIDGESTONE ARE WELL AHEAD OF THE GAME.” thinking and to provide the very high Bridgestone standard of service.

MT: Do you sell products other than Bridgestone?

LD: Generally we have a Bridgestone product that will deliver the results they’re looking for but we do sell other brands on occasion if the customer requests them.

MT: What’s it like being part of a big group like Bridgestone?

LD: There are a lot of benefits being with a trusted brand such as Bridgestone. As I mentioned, I had looked at other companies but found that Bridgestone was the better fit.

They are a very good brand and, I believe, the number one in the tyre industry. The support is there, you just need to ask and they are very willing to give you a hand. When you first come into the business they’re there to make sure you’re doing all the right things and all the practices they’ve put in place are followed correctly in-store. They’re very good in that way and have a lot of people there to help you. If you wanted to get into the tyre industry, Bridgestone are well ahead of the game.

MD: It’s a lot easier to sell the product because you know that it is a good product. You have a lot more confidence in selling a product when you know it’s a great brand.

MT: What is your family’s involvement in the business?

LD: I’m the proprietor and Miles is the manager and, hopefully, he will take over. My wife is currently running our remaining stores in South Australia but once we’ve sold them, she’ll come in too. Miles has looked at training for the mechanical side of the business and I wouldn’t mind if he did. He’s a very quick learner. My two other children are not involved in the business.

MT: What do you do in your spare time, if you have any?

LD: I don’t get much but, when I do, I usually spend it at home - I have eight acres so that takes a lot of my time.

I like hot rods and enjoy going to events like the Cooly Rocks On event on the Gold Coast.

MD: I used to do a lot of karting when I was younger. That's something that I plan to get back into.

MT: What are your future plans for the business?

LD: At some point I’ll hand the business over to Miles and I’ll take a step back. After that, maybe I’ll do some traveling.

MD: Hopefully I will take over.

He wants to retire someday! I have thought about doing a mechanical apprenticeship. It would be beneficial and it’s something that has interested me, so it may be on the cards.

July 2014 Motor Trader | 9

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10 | Motor Trader July 2014

All-action AC/DC frontman Brian Johnson may have satisfied his music industry ambitions some years ago, but get him on a racetrack and there’s clearly unfinished business to attend to, as Motor Trader discovered.

I

“ ALWAYS FIGURED THAT rock ‘n’ roll and cars automatically went together, and I think plenty of people agree with me. To me, it seems so bloody obvious!”

Brian Johnson is in his element. Holding court at iconic British racetrack, Goodwood, the AC/DC singer could not be happier as he launches his new satellite TV show Cars that Rock. Because make no mistake, fast wheels and vintage motors are just as much a part of Johnson’s life as the raucous guitar-grinding riffs music that led his band to become the biggest selling rock proposition ever unleashed.

For the past 16 years, Johnson has been a racer as well as a rocker. Testing his mettle everywhere from Seebring to Road Atlanta, Zandvoort to Brands Hatch, he admits to racing in every available window of time he has… although with his group’s proposed reforming in the coming months, opportunities on the track might be limited. In the meantime, his collection of motors offers an easy eye into the types of cars that make the 66-year-old tick. “I love the Pilbeam, the Lola T70 Mark 1, and I can’t leave out my first ever proper racer, the Royal RP4.

“I still have that car now, and have won so many races in it. It’s a magnificent thing, and comes with real British heritage - they built 12 of them in 1971 in north London with the idea that it was something to go up against the Lotus.

There are only seven of them left now and I’ve got one of them – that makes me grin. It’s just one of the fastest little sports racers left. I love it.”

In his excitable, slightly over the top Geordie tones, Johnson speaks with typical excited passion, occasionally taken to a higher state of consciousness, as the whiff of petrol blows through the pit lane. Johnson explains why the adrenaline rush and overall passion for speed is such a natural bedfellow of rock ‘n’ roll.

“The crowd, the noise, the excitement, the finish line, the end of the show - it all goes together. When there are 100,000 cheering it is such a rush. When they are cheering

“THE CROWD, THE NOISE,

THE EXCITEMENT, THE FINISH LINE, THE END OF THE SHOW - IT ALL GOES TOGETHER.”

for you and it is a personal, special thing there is nothing that can beat it. But if there was one other passion in my life, it would have to be my motors. I adore them, and I love the speed and thrill of race day, even if I’m not competing!”

Johnson’s rock ‘n’ roll legacy is well documented. It now spans four decades, going back to when he replaced Bon Scott as AC/DC frontman following the former lead singer’s tragic death in 1980.

July 2014 Motor Trader | 11

But . his interest in cars stretches even further. As a child growing up in Gateshead, a poor town in the north-east of England, Johnson became enchanted with cars and the pop culture mythology that surrounded them.

“It was from all the old Elvis Presley movies - there were always cool cars on there. It was a whole lifestyle thing; fashion, image. And think about it, that was just a world that didn’t exist in the north-east of England. Then The Beatles and Rolling Stones came along, the Minis came out - suddenly having a mini was cool. You’d see movie stars with them, royalty, pop stars, and your dad might have one as well. It was the ultimate car.”

It perhaps explains why the car Johnson is hurtling round the track on the day we meet - and at some speed, it must be said - is a Mini Austin Cooper S. “I only bought it last year but it is so much fun!” he laughs. “It shouldn’t be that much fun; it is ridiculous. In my TV series you see me buying it,

“THEN THE BEATLES AND ROLLING

STONES CAME ALONG, THE MINIS CAME OUT - SUDDENLY HAVING A MINI WAS COOL. YOU’D SEE MOVIE STARS WITH THEM, ROYALTY, POP STARS, AND YOUR DAD MIGHT HAVE ONE AS WELL. IT WAS THE ULTIMATE CAR.” Johnson with racing icon Paddy Hopkirk who won the 1964 Monte Carlo rally in a Mini

12 | Motor Trader July 2014

modifying it a bit and then taking it around Europe.

“As a car, it’s so different to everything else. It’s small but bold – there’s no glamour in it, it’s just about hammering around the track thinking each corner might be your last!

“I competed in about five races in it last year around Europe, and god damn it was so much fun. It makes me smile; my jaws are aching when I get out of the car.”

Johnson has been Australia’s favourite adopted son for 35 years. “I love Australia, I love the Aussies,” he admits.

“Maybe I’ve been lucky enough to see the good side, but there’s a whole ethos there… it’s all about lifestyle.

“PEOPLE TALK ABOUT THE

HOLDENS, BUT ALSO SOME OF THE FORDS COME UP TRUMPS. THE MOTORING INDUSTRY IS SUCH A GLOBAL THING THESE DAYS, YET AUSSIE CARS RETAIN AN INCREDIBLE SENSE OF INDIVIDUALITY.”

It’s not ‘work work work’ like some other countries.”

All that said, a return down under for the day job could be something that happens sooner rather than later.

This year marks AC/DC’s 40th anniversary. And yes, he might joke that, “Jesus, I never thought I’d get there… 40 years!” but get there he has, and it appears not even the ill health of founding member Malcolm Young can stop the veteran rockers wanting to celebrate the upcoming milestone in style.

“We’re meeting up in Vancouver – it’s a case of sitting down with the boys and seeing what comes out. It’s been four years since we finished the last tour, but we were on the road for two years before that, so we needed a break… a break from each other! But the idea is to get together, see what material we’ve come up with between us, and formulate a plan. We’re the sort of band that makes things happen quickly once everyone’s in the right place, mentally… although that can take longer than it used to!”

Of course, if AC/DC cannot summon up the energy to take their sound out on the road again, there’s a fair chance Johnson will console himself by heading for the southern

Johnson has a soft spot for Bentleys

hemisphere. “I’ll definitely be in Australia,” he says.

“I’ve not yet spent enough time with Aussie motors and need to brush up my handling technique! There are some awesome manufacturers over there, and what I love is the fact there are so many models that you just cannot find elsewhere. People talk about the Holdens, but also some of the Fords come up trumps. The motoring industry is such a global thing these days, yet Aussie cars retain an incredible sense of individuality.”

What Johnson wants above all else though, is to finally get the chance to race in Oz. “I’ve driven a Roller around Sydney, up to the Harbour and all that, and believe me, that was a dream for a kid from Newcastle! But I would love to get round the track properly. Bathurst would do it for me, totally.”

Perhaps the AC/DC reunion can wait until its 50th anniversary given that Johnson appears to have unfinished business on the track?

“When the band is half a century old I seriously doubt if we’ll still be able to do all that stuff. Ask me if I’ll still be into opening up the throttle on a V8 though, and my answer will be different!”

July 2014 Motor Trader | 13

14 | Motor Trader July 2014 14 | Motor Trader July 2014

Geoff Brabham

Lady Margaret Brabham is escorted from the church

“YES, HE WOULD PUSH THE LIMITS... BUT HE ALWAYS HAD THAT FEEL WHERE THE LIMIT WAS ON ANY GIVEN DAY. IT WAS THE MAIN REASON HE STAYED ALIVE WHEN SO MANY DIDN’T.” champion Alan Jones, V8 Supercar star James Courtney and Mayor of the Gold Coast Tom Tate - and millions watching around the world via live

Source: Gold Coast Bulletin

Source: Gold Coast Bulletin

AMILY, FRIENDS, POLITICIANS, racing drivers, journalists and fans of Sir Jack gathered at the Southport Church of Christ on the Gold Coast on June 11 for the State funeral of Australia’s greatest racing legend.

And it was a service, and a farewell, filled with sadness but also joyful memories as members of the Brabham family reflected on Sir Jack’s life.

Sir Jack’s son Geoff, a formidable racing driver in his own right, told stories of a life that was ‘never boring’- of daring plane rides shared with his pilot father; of a hungry baboon stealing lunch from a surprised mechanic while on safari; and then had the assembled mourners laughing heartily with a tale of his father's belief in the potential healing power of magnets which, he was told, could help slow his prostate cancer.

Placing a pair of industrial-strength magnets into his underwear, the tale ended painfully when the two powerful magnets slammed together, squashing “his more delicate parts”.

“It was incredibly difficult to get two multi-grips on two industrial magnets when you're laughing and dad is rolling around in agony!”

Geoff also reflected on the dangers of the era in which his father carved out his remarkable career.

“Yes, he would push the limits,’ he said. “But he always had that feel where the limit was on any given day.

“He lived an incredible life and I don’t believe you can ask for any more.”

Sir Jack’s grandsons, Matthew and Sam, also spoke, reflecting on how inspirational their grandfather was as they chased their own dreams of racing success.

Queensland Premier Campbell Newman offered his condolences to the family too and a message from Prime Minister Tony Abbott, who was unable to attend the funeral, was read out to mourners lamenting the fact that “Australia has lost a legend.”

With several hundred people in attendance - including former F1 world

Source: Gold Coast Bulletin

A FITTING FAREWELL TO A RACING LEGEND F

Matthew Brabham and Sam Brabham

Premier Campbell Newman is greated on his arrival

internet feed, it was a worthy farewell to a man who won three Formula One championships, two F1 constructors championships and who is the only man to win a driver’s title in a car he built, designed and which bore his name.

Kellie Dewar, General Manager of MTAQ, represented the Association at the funeral.

“It was an honour to be there to represent MTAQ and our members,” said Kellie. “Sir Jack’s links to MTAQ and MTA Institute of Technology go well beyond the fact our facility bears his name and I am sure his legacy will continue to inspire us all.”

AADA CONFERENCE TO INVIGORATE INDUSTRY T HE AADA NATIONAL Dealer Convention kicks off on July 10, and the three-day event will herald a new era for the Australian Automotive Dealer Association (AADA).

It will be the first convention under the control of the reorganised AADA, and with a host of experienced guest speakers - including Veronica Johns, President and CEO of Fiat Chrysler Group Australia; renowned business trainer Paul Cummings; and former Prime Minister John Howard – there is sure to be plenty of inspiration for the gathered Association members and allied industry members.

“The theme for the convention is ‘Forward Thinking and New Direction’, and that obviously takes into account changes at the Association level,” said Patrick Tessier, CEO of AADA. “What we have now is a Dealer Association that is owned by the dealers, run by the dealers and is only for the dealers.

“We have reinvented the Association if you like, and the level of enthusiasm and membership take-up has been very impressive in the three months since the five state roll out announcements.

“We will be approaching 1,000 members by the time of the convention and membership is very broad which will give a lot of depth to the debates they’ll be having.”

And there will be plenty to discuss, with the convention schedule crafted around the issues dealers are currently facing, including the ‘Access to repair information’ debate, the changes to the LCT, used car unrestricted imports, the internet, and franchise agreements.

For AADA Chairman Ian Field, the convention is part of an ongoing move to ensure dealers' collective voices are properly and professionally represented in their dealings with the OEMs and with submissions to Government. With major structural, generational and policy changes already on the way he is hopeful dealers will understand the need to be part of a strong industry voice and join the new Association.

“I’d be happier if more of the smaller dealers were getting involved,” said Mr Field. “The large dealer groups

“WE NEED AN

EFFECTIVE VOICE TO NEGOTIATE THE CHANGES THAT ARE COMING.” have already become involved because they know we are entering a time of enormous change in the way in which the franchise system operates.”

And the developments in the industry are major. As Mr Field highlighted, the internet has changed the way dealers work and market their business, and the end of vehicle manufacturing in Australia - and the subsequent end to the ‘protections’ policymakers have put in place over the years – will have a major impact. How those changes are dealt with is deeply important to dealership businesses.

“The issue is, are we part of the process of change or are we going to have the changes pushed on us” said Mr Field. “We need an effective voice to negotiate the changes that are coming. This can only be achieved with industry experienced representation and I would like to see dealers understand the need to have that kind of effective national representation.”

Part of that effective representation will be explained in detail at the convention with a number of important announcements to be made.

One of the most important will be the announcement of a partnership between AADA and the National Automobile Dealers Association

(NADA) of the USA. The Associations will announce an accord that will see NADA University courses brought to Australia.

NADA University is the training arm of NADA and is the retail automotive and truck industry’s most comprehensive source for industry specific education.

With new car dealers in America employing more than one million people, NADA University is a vital source of education and training for its members and their employees, and the link-up with NADA will allow AADA members access to some of these world-class training resources.

“The NADA Universities programs are very highly regarded,” said Steve Ghost, Managing Director of the MTA Institute of Technology (MIT) who was involved in negotiating the partnership and will manage the implementation and roll out.

“Initially, AADA will offer three programs designed for automotive dealership businesses: A three day program for Dealership managers; a two day foundation program for sales people; and a two day advanced program for sales people.” (Contact sghost@aada.asn.au for more information).

The partnership with NADA is a key initiative for AADA to improve its image in the community at large and, as Mr Tessier points out, is just the first of many initiatives the Association is looking to provide to members.

“Australia is the first country outside North America in which NADA University programs will be available. It is very significant. And that is what an Association should be doing - bringing to its members the best systems and programs available from all over the world.

“We are proud to be the first partners of NADA in the world to roll this out and we believe it will be a very worthy adjunct to the Association and the services it provides.”

The AADA National Convention runs from July 10-12, at the Royal Pines Resort on the Gold Coast.

July 2014 Motor Trader | 15

ALL AMERICAN

F

OR MANY PEOPLE on Brisbane’s north side, and particularly in the town of Redcliffe, there is one name synonymous with the automotive business - Jack Beedham. And that is no surprise, for the Beedham family have been involved in the industry, and in the life of the town, for generations – Jack's grandparents owned the Redcliffe Pier Theatre during the war years and his father owned a service station and ran the first Holden taxi in the town.

Jack has been running his business, Jack Beedham’s Exhaust and Brake Centre, for 33 years and his interest in cars extends well beyond his work life. According to Jack’s son Bobbie, manager of the family’s business, it has become a way of life.

“We are a car family, always have been,” he says.

“That’s our life quite honestly.”

And that lifetime of passion reveals itself not just in the success of the business but in the cars the family enjoy collecting - cars that, in Jack’s collection, include a ’62 Chevy 2-door SS, a Chrysler Woody Wagon and a Falcon Sprint, and in Bobbie’s collection, a Ford Ranchero, an early Fairlane and an XF Falcon.

Amongst the cars Jack owns, a special place is held

16 | Motor Trader July 2014

for this remarkable looking 1967 Mustang GT Fastback. It's a car Jack discovered in the USA and is a replacement for a much-loved vehicle he owned nearly four decades ago.

“I found the car in Las Vegas while on holiday,” he says.

“I had one back in 1976 when the family was young, but I sold it and moved on. I always regretted getting rid of it.”

Which explains why, when he stumbled across the exact same model 35 years later, and with his children all grown up, he had to buy it and ship it back home.

Though it was in excellent condition, Jack’s pursuit of a personal perfection meant he has made some substantial changes to the car.

“The Mustang was a very original car when I bought it.

There aren’t that many around and there wasn’t a bit of rust in the car, or any damage. It was just beautiful.

“However, I did repaint it to the colour I like instead of the original gold and, though I didn’t touch the motor or transmission or anything else for quite a few years, I then decided to go that step further and upgrade the mechanicals.

“The original engine was a 289 with a four-speed top-

Rolf_52 / Shutterstock.com

MAKE: FORD MODEL 1967 MUSTANG GT FASTBACK ENGINE: 408 WINDSOR V8 OWNER: JACK BEEDHAM OWNED: FOUR YEARS

loader and 8¾-inch diff.

“I wanted something special with a little bit more horsepower - a bit more grunt and drivability - so I replaced the engine with a 408 Windsor, the transmission from a top-loader to a C4 manual shift automatic, and replaced the diff with a 9-inch Truetrac.

“We changed the wheels, tyres and the exhaust – it’s got a 3-inch dual exhaust on it – and we made extractors for it which are HPC (high performance coating) coated.

Mechanically, the whole drive-train has been changed.”

Though the Mustang is not his everyday vehicle, Jack does take it regularly to track days, car shows and events like the Cooly Rocks On festival held recently at Coolangatta in southeast Queensland (see page 30) – a massive event at which the Mustang proved popular with the crowds, standing out even among the more than 1000 classic cars that had descended on the coastal town.

“I do keep it under cover, it’s that sort of car,” says Jack.

“It’s not my daily driver but we’re not ‘trailer queens’ either - I do actually drive it to shows and track days!”

And so he should, for the result of all the hard work put

DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER? Contact Jonathan Nash at jonathann@ mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members. into the car is a beast of a vehicle that sounds as ferocious as it looks, and one that deserves to be driven and not treated as just a ‘show pony’.

For out on the roads, and at shows like Cooly Rocks On, the Mustang turns a lot of heads.

“Everyone loves it,” says Jack. “Everyone looks at it, the kids wave – it is a very popular car.

“And it is my favourite too. It is just what I wanted.”

July 2014 Motor Trader | 17

give yourself an Technical Information Service Your MTA Queensland membership gives you access to a vast technical library.

Industrial Relations As a member of MTA Queensland you have access to industry-specific industrial relations advice and representation.

Consumer Complaints MTA Queensland will assist member businesses and facilitate in the event of consumer complaints.

Legal Advice Members can access professional legal assistance as part of their membership of MTA Queensland.

Industry Awareness Members receive regular industry specific publications to keep you abreast of changes, legislative requirements, developments and initiatives in your industry.

• The MTA Queensland logo provides an element of differentiation between you and other businesses and may just form the key point of difference for a potential customer.

Save with our Corporate Partners

The Capricorn Society is the largest independent automotive cooperative in Australia. Members benefit through group purchasing to secure price advantage.

Dun and Bradstreet is the nation’s foremost credit control and debt collection agency. Members are eligible for substantial savings on annual subscriptions.

The Commonwealth Bank offers members some of the lowest EFTPOS charges in the country. Members have saved thousands with CBA.

MTAA Superannuation is the industry’s superfund. Our superannuation partner has over 200,000 members who enjoy excellent service and returns.

Staples is the leading supplier of a complete range of office consumables, bulk stationery and janitorial supplies.

• Being a Member gives you input in the future productivity and profitability of your industry and the opportunity to positively influence it’s future through divisional and regional committees.

NRMA Insurance has vast experience in the provision of specialist insurance services to the automotive industry. Using the buying power of the member base, NRMA can achieve pricing far more attractive than business owners can negotiate individually.

MTA Queensland, Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 | 07 3237 8777 | info@mtaq.com.au | www.mtaq.com.au

20120064

• MTA Queensland actively lobbies Governments with the best interest of our members to reduce red tape and streamline process for business owners.

ESSENTIALS Contents 19 Training matters 23 Members matters 26 Member profiles

AUTOMOTIVE IGNITION & ELECTRONICS PLATINUM AUTOMOTIVE SOLUTIONS STEVE SORENSEN MECHANICAL

30 Industrial relations

Todd Kither and Jesse Adams from Browns Autobahn

He always wants to know more.

If he needs to put a round peg in a square hole he'll find a way to do it.”

And that problem-solving ability and willingness to get stuck in and help other people will, no doubt, serve Jesse well when working on breakdowns as the Rally takes its long and rugged route through Qld's southwest.

“The Great Endeavour Rally was never meant to be easy and never will be," said Joel Stephens, Event Coordinator for the Endeavour Foundation.

“Jesse can expect eight fun-filled days in the bush working all hours and in all conditions on a variety of cars, some of which are nearly twice his age!” he added with a chuckle.

“For a young man it is an invaluable life experience to spend time on the road with a bunch of strangers, bonding together and helping each other. It is something that is part of the Australian Bush life.”

The Qld Great Endeavour Rally runs from July 11 to 19.

Find out more about the Rally at great.endeavour.com.au Discover more about the Endeavour Foundation at www.endeavour.com.au July 2014 Motor Trader | 19

E S S E N T I A L S

MEMBERS

ESSE ADAMS HAS won the Qld Great Endeavour Rally competition, claiming a spot on Brisbane Motor Auction's Rally Mobile Workshop crew.

He will now be part of the team keeping rally participants on the road as they travel thousands of kilometres through Queensland's outback on an eight day trek in support of the Endeavour Foundation.

It's a dream win for the 23-year-old apprentice from Brown's Autobahn in Nambour, who was understandbly 'ecstatic' when told the news.

“My colleagues were stoked too and so was my boss,” said Jesse. “When we heard about the competition, he said, 'Right, let's do it'. Before I'd said a word about it he decided to get it happening.

It's good to have a boss like that.”

And that boss, Todd Kither, had no problem with letting his charge loose for the Rally, acknowledging it will be a great experience and something for which Jesse is well suited.

“Jesse is awesome,” he said. “He's a really good kid. He's got the ability to think outside the square and I think the biggest thing he will get out of the experience will be the pleasure of helping people get back on the road to where they want to be.”

Having completed a trek to Cape York last year, Jesse has a bit of an idea of what to expect.

“Me and a mate drove to the top of Australia and back, going over every 4WD track we could find and breaking things and fixing things along the way.

I loved it!” he said.

“We even fixed a puncture on a guy’s Patrol when we were in the middle of nowhere, and when I got home he’d sent me a letter with a $50 gift voucher for helping him.”

For Don Lerm, Jesse's trainer at MIT, the win couldn't happen to a more deserving student.

“He's a bright kid,” said Don. “You can't give him enough information.

M E M B E R S

JESSE WINS SPOT ON THE TRIP OF A LIFETIME J

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

Training matters

NEW MIT TRAINING FOCUSES ON EMERGING TECHNOLOGIES T HE AUTOMOTIVE INDUSTRY is constantly evolving. That fact is evident in the hybrid and electric technology now being incorporated into new vehicles.

Every major manufacturer is involved in producing or developing these types of vehicles and it has never been more important for technicians and tradespeople to learn about these advances.

MTA Institute of Technology (MIT) recognises this and has developed a training course tailored to educate and upskill experienced tradespeople.

The post-trade electronics course had its first students in June.

Incorporating four modules, the course covers the use and maintenance of automotive electrical test equipment; how

20 | Motor Trader July 2014

to carry out diagnostic procedures and to diagnose correctly; and how to service and maintain battery electric vehicles.

The course was designed in response to inquiries by the industry, and was funded by the

“WHETHER WE LIKE

IT OR NOT THERE ARE GOING TO BE MORE AND MORE HYBRID AND ELECTRIC CARS ON THE ROAD AND PEOPLE HAVE TO TRAIN AND UPSKILL TO WORK ON THESE VEHICLES.”

State government via the Regional Workforce Development Initiative.

Organised through the Department of Education, Training and Employment (DETE) and its Field Officer for the Southeast region, Lisa McBrien, the course aims to support small and medium size businesses to grow capacity and capability within their workforce.

“It was employer driven,” said Ms McBrien. “The message from them was that they needed post-trade training in this area and the idea was to identify small to medium size enterprises that had tradespeople who had not been upskilled over the years.

“Field officers engaged with those businesses asking what they were looking for to increase their business,

MIT TRAINER PROFILE

to take on apprentices or trainees, and be up to date with the latest technology.”

“We also wanted tradespeople to take the course so they could create a learning environment in their workshops. We want apprentices to see employers in learning environments, to see that there is upskilling after an apprenticeship.”

“Essentially, it is furthering education,” said Anthony Bonaccorso, Business Development Manager for MIT. “Typically, most people will do their apprenticeship and may then attend a course here or there, but they don’t really continue their education in the sense of post-apprenticeship training.

“With this course, they get five full days here at MIT and our trainer, Paul Tugwell, will conduct post-course visits in their workplace to check the skills they’ve acquired are now being practiced in the workplace.”

Greg Rawlins, proprietor of Transport Electrical Services in Brisbane, a tradesman for 35 years, and one of the course’s attendees, saw the need for the specialised training and brought it to Ms McBrien’s attention.

“Lisa took it from that point, and what came out of that was this advanced training and diagnostic course.

“And it has been very interesting,” said Mr Rawlins. “The first part of the course has been the theory and

IAN EXINTARIS

baseline of diagnostics, and that is very important. The better we can diagnose a problem, the better we can understand the faults and the better chance we have of repairing something correctly and making a financially sound decision for the business and the customer. Misdiagnosis costs both parties a lot of money.”

Chosen specifically to run the lessons, MIT trainer Paul Tugwell spent some months preparing and designing the course.

“My passion has always been electronics,” he said. “And my passion now is hybrid electric cars. And there is a need for people in the industry to upgrade their skills.

“15 years ago, a course like this might not have been required, but now, because the vehicles are so highly technical, we have to know how to

for over 40 years. Owned and operated a small fleet on interstate transport operations. Have worked on various mine sites and franchises in roles from Diesel Fitter, Service Manager, Maintenance Superintendent to Branch Manager.

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

November 2013

What geographical area do you service?

Yamanto through to Mitchell.

What is your specialised area?

Diesel Fitting and Heavy Commercial Vehicles.

What is your background in the automotive industry?

Been involved in the mechanical trade (Diesel Fitting & H.C.V) and road transport

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

Seeing how the training programs given to the apprentices helps them achieve better understanding of components and their operating functions.

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

Having total confidence and respect

diagnose, and how to use the right equipment to diagnose problems.

“Whether we like it or not there are going to be more and more hybrid and electric cars on the road and people have to train and upskill to work on these vehicles. After all, when a car comes into a workshop, businesses should be able to work on it.”

For Mr Rawlins, the course was challenging but necessary and something that should be continued and widened.

“Ours is an evolving and dynamic industry,” he said. “There is always more to learn. The kind of knowledge needed is far broader and more technical than it has ever been, and it’s changing every year – every month.

“You can become complacent and it’s good to challenge yourself with something different.”

of the apprentice and their employer/s results in a greater training atmosphere for positive learning.

Why should someone consider a career in the automotive industry?

There will always be an automotive industry and the technology that is evolving in both L.V & H.C.V is nothing short of mind blowing. If you have a genuine interest in machinery, then go for a trade and excel in this field.

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

Focus greatly on being the ‘best of the best’ and accept nothing less. A very competent tradesperson is worth their weight in gold.

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

Continuing my involvement with the transport industry.

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

Training matters MIT TRAINING TRIO SCORE IMPRESSIVE RESULTS IN REGIONAL QLD TRAINING AWARDS THE QUEENSLAND TRAINING Awards, now in their 53rd year, are the state’s highest recognition of people and organisations in training, and the regional winners and place-getters have been announced.

And three MIT trainers were nominated this year, with all three being short-listed in their respective regions.

Light Vehicle trainer James Dixon scored a terrific 4th place in the highly competitive Metropolitan region - a region that had more than 200 trainers enter for the award.

A wide and varied background - a lifelong interest in fitness and health has seen him become a trainer in that industry too - has given James a unique combination of skills which, he says, makes him more than just a ‘trainer’ to his students, but also a ‘mentor, friend, and counselor’.

Having started with MIT in 2011, James works with 60 Light Vehicle apprentices across east Brisbane and started putting his nomination entry application together back in March.

While the process of applying was a long one, the wait for the result was a long one too, with the judges clearly having a difficult time making their choice.

“It was a lot of work to get the application together,” he said. “But I was proud to be nominating for VET trainer of the year. They did say it was a hard decision and that the standard of applications was very high.

“They also said I should make sure

James Dixon

22 | Motor Trader July 2014

I enter again next year,” he added Peter Jaensch, MIT trainer in the Emerald region with 52 apprentices on his books, was shortlisted in the Qld central region.

An MIT trainer for two years - with a training brief that covers Light Vehicle, Mobile Plant, AutoElectrical, Parts Interpreting and Tyre Fitting - the former Holden service manager was nominated after receiving a chorus of positive feedback from customers - feedback of which he is justifiably proud.

“I haven't taken part before,” he said. “But I was nominated on the back of those comments that were coming through from clients and that is very pleasing.”

Andrew Bellars a 12-year veteran with MIT was shortlisted in the South East region.

Andrew has plenty of experience in automotive training, having worked in a similar capacity in Australia and South Africa before joining MIT. With nearly 70 apprentices on his books, Andrew focuses mainly on Light Vehicle training but also trains auto-electrical and diesel fitting and is happy that the apprentices remain the focus of his work.

“I was very pleased to be nominated,” he said. “It’s an acknowledgement of the effort you put in. But I have a good relationship with my apprentices and my main priority is looking after them.

Awards are really a bonus.”

Peter Jaensch

Andrew Bellars

PIC TO COME

Sarah Gale

SARAH TAKES TOP AWARD FOR JUNE SARAH GALE, FROM Rego’s Mechanical Service in north Queensland, has been awarded MIT’s Student of the Month for June.

The second-year light vehicle apprentice has been with the business for two years and has, according to her boss Clint Reghenzani, proven to be an outstanding employee from day one.

“Sarah walked in here one day and said she wanted to be a mechanic,” said Clint. “I said she should come in and do a bit of work experience and told her to come in at 8am. She then asked me what time I started work. I told her between 6.30am and 7am. We left it at that but the following Monday I came in at 6.30am and she was already at the door waiting.”

It’s that sort of commitment that has made Sarah invaluable, though she was surprised to get the call that she had won the Student of the Month award.

“It’s pretty amazing,” she said. “My trainer Scott encouraged me to go in for it so I applied, but I didn’t expect to get it.”

“Sarah is a dedicated employee who shows strong initiative and a willingness to take on any challenge,” said her MIT trainer Scott Buckley.

And Sarah is certainly getting a good grounding - the two-person team at Rego’s Mechanical Service offers a wide variety of services.

“We have a field service unit and go out to farms to work on agricultural equipment such as trucks, tractors, forklifts, bobcats,” said Clint. “We also have a full light vehicle workshop.”

“I’ve been servicing cars, doing full suspension jobs, brake work, everything,” said Sarah. “And it’s all great.”

Sarah wins a Kincrome 5-piece Panel Remover Set as this month’s prize.

AISING MONEY FOR charity can take many forms - from fundraising breakfasts to barbecues, from raffles to Outback bush rallies.

At the beginning of June, Mark Dodge, from MTAQ member Mark Dodge Autos, found himself involved in the Sea FM Chain Gang Challenge, a novel scheme to raise funds for the charity Give Me 5 For Kids - a charity supported by radio and TV stations across regional Australia that raises money for local community hospitals, sick children and their families.

Along with other prominent members of Cairns society - including Mayor Bob Manning, CEO of Cairns Airport Kevin Brown, President of AFL Cairns Gary Young, Chamber of Commerce CEO Deb Hancock and Member for Cairns Gavin King - Mark was chained to a wheelchair in the city’s Martin Munro Park with a $1000 ‘bounty’ as the price of freedom.

Organised by local radio station 99.5

Mark Dodge takes a call during the fundraiser

Sea FM, which broadcast live from the venue, the money raised from the event will go to the Far North Queensland Hospital Foundation and the Cairn’s Hospital children’s ward.

“Basically, we had to raise a $1000 ‘bounty’ to be set free,” said Mark.

“We had one arm handcuffed to the wheelchair and the other was free so we could use a mobile to phone friends and raise the money.”

There was never any doubt Mark

would raise the funds – phone calls to friends leading up to the event ensured some pledges were locked in – but the RACQ contracted service provider wasn’t above a bit of skulduggery to ensure a bumper haul, cashing in on some friendly inter-departmental rivalry at the RACQ. “I called one department there and got some pledges, then I called another department and said, ‘Are you going to beat the others?’ I raised a bit of money that way,” said Mark with a chuckle.

“It was a two-hour event, from 7am to 9am, and I ended up with pledges of around $3000. I believe, in total, around $13,000 was raised.”

And that gets to the point of the event - raising money to help sick children and local hospitals. And that is something, Mark said, that you can’t help but support once you start.

“Everyone had a really good time and got behind us. But it is all about the kids.

You just have to walk onto a children’s ward and you’re hooked.”

LUKE VICTORIOUS IN TOWNSVILLE ‘TOUGH TRADIE’ COMP LUKE MYTHEN IS one tough bloke. And the 26-year-old owner of Action Automatics and Mechanical in Townsville proved it when he emerged victorious from the town’s ‘Toughest Tradie’ competition.

Held at the city’s Great Northern Hotel, the competition pits tradies against each other in amateur boxing bouts across two weight classes.

And Luke did automotive tradies everywhere proud by taking out the title in the under-75kg weight class.

On a night of black eyes and bruised egos, Luke won his three-round bout on a unanimous points decision in front of hundreds of cheering onlookers.

It was Luke’s debut performance in the ring despite years of boxing training as a way to keep fit.

Luke Mythen

“I used to box as a hobby – just for exercise and cardio,” he said. “Then I was a bit cranky at work one day and I thought I might as well have a go and put my crankiness to good use!”

“I ended up with one black eye,” he said with a smile. “But the other

fella ended up with two black eyes, a swollen cheek and a busted nose. He wasn’t very happy.”

Luke is now back at Action Automatics and Mechanical, the business he bought two years ago and at which he has worked since he was an 18-year-old apprentice. And, along with his five staff, he’s back servicing cars, working on transmission and diff rebuilds, power steering, fuel injection systems, and brakes. “We do a bit of everything,” he said.

But the lure of the ring may tempt Luke into fighting again.

“I will do the next toughest tradie night,” he said. “My cousin is going to come and take part in the heavyweights, so maybe we can win the whole thing.”

July 2014 Motor Trader | 23

E S S E N T I A L S

MARK UNDER LOCK AND KEY FOR FUNDRAISER R

M E M B E R S

Members matters

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

Members matters

CITY WORKERS BENEFIT FROM DROP-OFF SCHEME B ACK IN THE ‘80s and ‘90s, Tony Currie had a hugely successful career playing and coaching rugby league across the world.

These days, the former Australian, Queensland and Broncos star is continuing to carve out a successful career, but in a radically different game - the automotive trade.

For the past 14 years, Tony has been running his successful business, Tony Currie’s Tyres and More, at a site just 4km from Brisbane’s city centre in the suburb of Morningside.

And he has now expanded that business with an initiative aimed squarely at Brisbane’s busy city-centre workers.

A deal with the council has seen Tony lease parking spots at the city's King George Square car park as a convenient drop-off point for busy customers. The vehicles are taken to Tyres and More, the work completed, and the cars returned for the customer to pick up at the end of the day.

Tony Currie at his Tyres and More business in Brisbane

24 | Motor Trader July 2014

It’s a nifty idea - a variation on a scheme Tony spotted while in New Zealand a few years ago.

“It really is for the worker in Brisbane,” said Tony. “For those who commute into the city, are short on time but whose cars need new tyres or a service.”

And 'service' is the name of the game for Tony. Keeping customers happy and offering benefits such as the drop-off scheme is something he believes in strongly.

“I’ve always been working, even when I was playing rugby league. I’ve sold insurance, beer, I’ve run clubs.

Even though I’m now selling tyres and mechanical, you’re actually selling 'service'. If you concentrate on that, the rest takes care of itself.”

Six months into the scheme, Tony admits it's taking time to catch on, but is convinced he’s on to a winner.

“Queenslanders are true Australians,” he said with a grin. “We’re very

laidback so I think the service is going to be one of those things that grows.

It’s just a matter of time.”

Tony Currie’s Tyres and More is a real family business - Tony's wife Moira, his sister-in-law and two sons all work there - and, as the name suggest, its services extend beyond just tyres into the full range of mechanical servicing.

“We’re a one-stop shop,” he said.

A mechanic by trade, it’s probably not a surprise that Tony would be involved in the automotive industry, even with the long interruption of his stellar footy career.

“After I retired, I didn’t really have any intentions of getting into the tyre game but I knew, after I came back from coaching in England, that I wanted to buy a business.

“And when I was shown this place I thought ‘this is it’. It’s on a main arterial road, it’s 4km from the city centre and it has plenty of parking.”

The success of the business has allowed Tony the opportunity to expand into another, more personal, area that is clearly close to his heart - developing a training program for young indigenous people.

“Indigenous kids can sometimes come from an unstable family life that can affect their schooling.

“I want to teach the kids the basics - how to work, to turn up, to be well-groomed, to be healthy.

“So I make sure their uniform is right, their health is checked, they get their driving licence and, after 12 months training, they have been trained in tyre fitting, wheel alignment and basic undercar mechanics.

“I want to offer some mentoring and some security.

“I have one trainee at the moment and he has responded very well and, as the business grows, I’m hoping to create a model here that will help other businesses in Australia.”

award for Number 1 Wayne and Jenny Rosenberg receiving the iko Kiyama, Kawasaki Dealer in Queensland from Shigeh n President of Kawasaki World Motorcycle Diviso

“WE HAVE GREAT

STAFF AND WE TAKE A LOT OF PRIDE IN THE AWARD. TO SAY YOU’RE THE NUMBER ONE DEALER IS QUITE SOMETHING. IT IS TOUGH TO BEAT.” Mule Sales Dealer Award and has, in recent years, collected The Most Improved Dealer Award and been the No. 1 ATV and No.1 Mule Dealer in the country.

That’s not a bad haul for a business that started as a one-man operation in 1988 called Wayne Rosenberg Motorcycle and Small Motor Repairs.

“The business was called that because, originally, my trade was in motorcycles

and small motors such as mowers and pumps,” said Wayne. “But within a couple of years the motorcycle part of the business really began to grow.”

Wayne's wife Jenny joined him working in the business in 1989 and was instrumental in looking out for the business as it grew, while Wayne found himself busy in the workshop.

And the enterprise has continued to flourish.

So much so, in fact, that they recently moved the business into the heart of Rockhampton to William Street, locating the enterprise in the very building in which Wayne started in the trade back in 1978.

Now, that building houses their own burgeoning business, nine staff, and full workshop facilities.

And it’s a building into which more accolades could flow as the business builds on its award win and continues to provide sales and service customers can rely on.

“It has been a team effort,” said Wayne. “We have great staff and we take a lot of pride in the award.

“To say you’re the number one dealer is quite something. It is tough to beat.”

July 2014 Motor Trader | 25

E S S E N T I A L S

T’S BEEN A pretty good year for Wayne Rosenberg, his wife Jenny, and the team from MTAQ member Rosenberg Motorcycles in Rockhampton.

The business, which sells and services motorcycles, All-Terrain Vehicles (ATVs) and Mules (Kawasaki’s small, rugged utility vehicles), recently won the Queensland Kawasaki Dealer of the Year Award for 2013-2014 – a prestigious accolade that saw Wayne and Jenny travel to Kawasaki’s headquarters in the city of Kobe, Japan, to pick up the gong.

“We went to Japan for seven days,” said Wayne. “It was a great trip.

We had a tour guide with us and everything was well planned.

“We went through the motorcycle factory in Kobe and were shown the tilt-train factory too, which Kawasaki also makes. Then we were presented with our award at Kawasaki headquarters.”

The Queensland Kawasaki Dealer of the Year Award is recognition for hard work and dedication and, most importantly for Wayne and Jenny, was not bestowed on the business just because of the number of units sold.

“The award is based on market share but also on elements such as staff and shop presentation, shop fit-out and customer satisfaction,” said Wayne.

“They take everything into account.”

And it is the service and customer satisfaction element of which the Rosenberg team is most proud.

“I remember someone interviewed me once and, after they’d asked me a particular question, they said ‘Don’t tell me it’s all about service, that’s very old’," said Wayne. “And I said ‘Well, I’m sorry, but it IS all about service’.

“You have to offer good service.

It’s very competitive out there. Anyone can sell a motorcycle but you have to be able to back it up.”

It’s an attitude and a philosophy that has served the business well, for the newest award is just another feather in Wayne’s cap. The business also scored the number two spot in the ATV and

M E M B E R S

WAYNE'S SUCCESS REAPS KAWASAKI AWARD I

Automotive Ignition & Electronics Location: Underwood Type of business: EFI & Ignition Parts Supplier

M E M B E R S

E S S E N T I A L S

Member profiles

Number of employees: 9 Trading since: 2006

Automotive Ignition & Electronics

Platinum Automotive Solutions Location: Virginia Type of business: Mechanical repairer Number of employees: 5 Trading since: 2003 MTAQ member since: 2003

How did you hear about the Motor Trades Association of Queensland? (MTAQ) We heard about MTAQ from working in past workshops who were members.

How has being an MTAQ member benefited your business?

MTAQ has benefited our business by giving our customers and suppliers peace of mind. The customer knows we abide by all motor repair guidelines.

What has been your proudest business achievement to date?

Our biggest business achievement is to start our business all over again after three years being in a failed franchise.

Another achievement is being part of a personal development business to improve business three-fold.

What is the best thing about working in your industry?

The best thing is the grateful customers.

Many have become our friends.

Steve Sorensen Mechanical Location: Browns Plains Type of business: Mechanical workshop Number of employees: 6 Trading since: 1996 MTAQ member since: 2010

Steve Sorensen Mechanical

26 | Motor Trader July 2014

What is the best thing about working in your industry?

Constantly changing technology means that there are always new things to be learnt and understood.

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

You have to learn to walk before you can run. Don’t try to get bigger before you are ready both financially and structurally. Too many businesses fail by overextending themselves.

What would you say to someone thinking about joining MTAQ? It is important for all small businesses to be a part of and involved in industry bodies that can help you overcome legislative issues and give a collective voice to the industry.

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

The best piece of business advice is to keep going and never give up. There is always a solution to any problem.

What would you say to someone thinking about joining MTAQ? I would say not to hesitate. MTAQ is a fantastic organisation to be a part of.

Platinum Automotive Solutions

How did you hear about the Motor Trades Association of Queensland? (MTAQ) We had known about MTAQ for a number of years, yet only realised the benefits when we signed our apprentice to MTA Training.

What has been your proudest business achievement to date?

We have been proudly inducted into the ‘Silver Hall of Fame’ after winning the Quest Business Achievers Award in 2007, 2009, 2010, 2011 and 2012.

How has being an MTAQ member benefited your business?

MTAQ has added credibility to our business but we also love the peace of mind that comes with having the backing of an organisation specific to our industry. The Industrial Relations advice is a huge help and we have also utilised MTAQ’s training facilities and tech advice.

What is the best thing about working in your industry?

Watching our sons embrace new technology and share our passion for the industry.

What would you say to someone thinking about joining MTAQ? Even if you don’t think you would utilise all of MTAQ’s resources, just knowing they are there if you do need them is definitely worth the membership.

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

Maintain your marketing strategies, even when you have plenty of work on.

July 2014 Motor Trader | 27

E S S E N T I A L S

How has being an MTAQ member benefited your business?

The technical specifications assistance and the legislative assistance are a great help to our business.

What has been your proudest business achievement to date?

Our continued growth from a one man mobile business to a company that now imports from 9 countries and supplies parts nationally.

M E M B E R S

How did you hear about the Motor Trades Association of Queensland? (MTAQ) I first became aware of the MTAQ at a previous workplace where they used the technical assistance line.

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

Industrial relations

YOUR RIGHTS AND OBLIGATIONS WITH CASUAL EMPLOYEES

YOUR RIGHTS AND OBLIGATIONS WITH CASUAL EMPLOYEES

C MICHELLE CHADBURN INDUSTRIAL RELATIONS OFFICER

YOUR RIGHTS AND OBLIGATIONS WITH CASUAL EMPLOYEES

ASUAL EMPLOYMENT ALLOWS for greater flexibility from both the employer and employee’s perspective. There is no obligation to provide paid annual leave or personal leave for casual employees and as a result they are paid a casual loading to compensate for this. There is no requirement to provide casual employees notice of termination nor are they required to provide notice if they terminate their employment.

While casual employment does provide greater flexibility in the employment relationship, there are a few obligations that employers in our industry need to be aware of. Generally, in the motor industry the applicable Awards are the Vehicle Manufacturing, Repair, Services and Retail Award (VMRS&R Award) and the Clerks Private Sector Award. Under the VMRS&R Award casual employees that have been working ‘regular and systematic’ hours, for a minimum of six months need to be advised in writing that they may apply to convert to permanent employment.

If a casual employee does apply to convert to either part-time or full-time, there is no obligation to accept the conversion. You are entitled to refuse the request if the refusal is based on genuine business grounds. For example, a service station may not be able to afford the penalty rates for permanent staff or to lose the flexibility

“A CASUAL EMPLOYEE

IS NOT TECHNICALLY ENTITLED TO NOTICE OF TERMINATION, BUT IF THEY ARE WORKING REGULAR FIXED HOURS THEY MAY BE ENTITLED TO LODGE AN UNFAIR DISMISSAL CLAIM.”

that casual employment provides. Both the offer to convert and the acceptance or refusal must be in writing.

A casual employee is not technically entitled to notice of termination, but if they are working regular fixed hours they may be entitled to lodge an unfair dismissal claim. In order to claim for unfair dismissal they need to have worked for the qualifying period. The qualifying period for a business with less than 15 staff (small business) is twelve months and for other businesses it’s six months. With this in mind, prior to termination of employment outside the qualifying period, you will need to follow a performance management process which includes issuing a final warning prior to the actual dismissal.

Any casual employees that do not work regular fixed hours or have worked less than the qualifying period are not entitled to make a claim for unfair dismissal.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

Caltex Foodstop Gympie

Katie Mitchell

46 Geordie Road, GYMPIE Q 4570

Pmjh1@bigpond.com

SSCSAQ

Des’s Smash Repairs

Desmond & Rene Cockerill

25 Park Street, NORTH ROCKHAMPTON Q 4701

dessmash@bigpond.net.au

NACA

Doc’s Auto Clinic

Joseph Vanscherpenseel

6 George Street, INGHAM Q 4850

admin@dcsauto.com.au

AED

Matilda Capalaba

Rajeev & Sanjay Sharma

3201 Old Cleveland Road, CAPALABA Q 4157

sgdaustralia@optusnet.com.au

SSCSAQ

Matthew Wright

Midas Car Care - Woolloongabba

98 Logan Road, WOOLLOONGABBA Q 4102

Wrightdirections1@gmail.com

AED

Morayfield Smash Repairs

Ryan Anderson

38-40 Dickson Road, Morayfield Q 4506

reception@morayfields mashrepairs.com.au

NACA

RHD Classic Supplies & Service

Sharine Milne

5/29 Casey Street, AITKENVALE Q 4814

rhdclassic@hotmail.com

QMID

Solden Paint & Panel

Jeffrey Benson

27 Terrence Road, BRENDALE Q 4500

solden@powerup.com.au

NACA

28 | Motor Trader July 2014

Investment matters

MARKET WRAP

T

HERE HAS BEEN a significant amount of noise in the newspapers calling for a sell-down in the market. However, despite the Federal Budget dominating domestic news, market weakness has failed to materialise. The key reason for this appeared to be due to the ongoing support provided by very low bond rates and interest rates.

At the start of the year many in the market were positioning themselves for a steady unravelling of quantitative easing. The expectation was that bond yields would steadily increase as the US withdrew support for the market.

However the 10-year bond yields have actually fallen from over 3% to 2.5% since the start of 2014.

The implications of this move are that it provides support for all risk asset classes. Basically if the US bond yield is trading at 2.5% (3.6% in Australia), then investors are prepared to accept the risk to invest in a range of equities, property and infrastructure assets providing earnings yields of more than 6%. Within equities it has provided a resurgence in support for higher yielding defensive stocks.

As a consequence, it is important to examine the drivers of this move in bond yields to determine its sustainability. We see two arguments on this front. Firstly there are those who argue that too many investors trying to take advantage of the QE trade and selling bonds had overshot and artificially increased yield. An extremely cold winter that caused GDP growth to contract 1% for the March quarter resulted in a delay in expectations regarding interest rate increases, and subsequently led to the fall in bond yields.

“THE LEVEL OF FISCAL AUSTERITY HAS BEEN HARSHER THIS TIME AROUND GIVEN A NEED BY MANY GOVERNMENTS TO BRING DEFICITS UNDER CONTROL. THIS IS RESULTING IN A SUBDUED CYCLE COMPARED TO USUAL EXPECTATIONS.�

An alternative argument is that the recovery from the GFC has been unusually subdued. Ordinarily this far into a recovery we would expect a stronger recovery in credit growth as corporates and households take advantage of low interest rates to gear up. This gearing fuels a stronger recovery and ultimately a boom, which forces interest rates up and the start of the next downturn. However following the savage 2008 downturn, we are still seeing the impacts of deleveraging as households and businesses alike reduce debt levels. In addition, the level of fiscal austerity has been harsher this time around given a need by many governments to bring deficits under control. This is resulting in a subdued cycle compared to usual expectations.

This is leading to speculation that a Goldilocks (not so hot that it causes inflation, and not so cold that it causes a recession) scenario may occur. If this was to unfold economic volatility should stay low, and so will equity and interest rate volatility. Risk of major

economic or financial market 'blowups' in a 'cycle-less' economy is lower than that in a boom-bust system and muted growth and weak pricing power will restrain earnings expansion. The implication for the market should this scenario continue is that the PE for the market is likely to remain higher but the profit growth lower.

The problem with the Goldilocks scenario is that it feels a little too much like a fairy-tale. That is, the market is seeking an answer to explain the move in bond yields when the colder winter is probably a more viable and obvious answer. No doubt aspects of the idea are justified. The cycle does seem more subdued and gearing is modest at this point in the cycle. Nonetheless, we are starting to see some signs of a change with private equity gearing up to make acquisitions, and a pick-up in mergers and acquisitions.

DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Investment in a Dalton Nicol Reid individually managed account can only be made on completion of all the required documentation. Whilst Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within.

July 2014 Motor Trader | 29

Cooly Rocks On

ROCKIN’AND ROLL I

F YOU LIKE classic motors, and have an affinity for anything from the ’50s and ’60s, then there’s a good chance you’ve heard of the annual Cooly Rocks On festival.

Held at Coolangatta in Queensland’s southeast corner, more than 100,000 people attended this year’s event which ran from May 30 to June 8.

Though billed as a ’50s and ’60s nostalgia festival - and there are plenty of distractions related to that era, from fashions to music - the real stars of the party are the cars.

Hundreds of classic motors, polished and prepped to perfection, lined the beachfront Marine Parade, and with the golden sands of the beach, the deep blue of the ocean and the skyline of the city of the Gold Coast

“THOUGH BILLED

AS A ’50S AND ’60S NOSTALGIA FESTIVAL . . .

THE REAL STARS OF THE PARTY ARE THE CARS.”

as a backdrop, it would be hard to pick a better spot to show off some truly amazing vehicles.

And MTAQ members, unsurprisingly, were there, showing off their classic cars to the wide-eyed crowds.

It was the fifth year at the event for Dave and Wayne Delaforce from Park Ridge Wreckers. The father and son team - and some of their equally car-mad friends - took a number of

show spots for their vehicles.

One of those cars was a 1952 Chevy Businessman’s Coupe - something of a rarity.

“That car got a lot of interest,” said Dave. “It’s the first two-door Businessman’s Coupe to be registered in Queensland. People were pretty taken with it.

“We also took my Chevy C10 truck, an Impala and a ’57 Chevy truck.

A friend brought his Ford Thunderbird and a red Corvette too.”

An avid collector, Dave was able to restrain himself from buying any more vehicles, even though plenty of browsing was done.

“It was tempting,” he said. “There were a couple of trucks down there that were very interesting.”

Jack Beedham and his family brought several vehicles from their collection

's Coupe

Dave Delaforce's 1952 Chevy Businessman

30 | Motor Trader July 2014

LIN’ ON THE COAST MTAQ member Jack Beedham, was there too with vehicles from his collection, including a 1969 F100 truck and his stunning 1967 Mustang GT Fastback (see Member's Classic on page 16).

“The Mustang was really popular,” he said. “People took pictures of it all day long. It got a good reaction.”

This was Jack’s third year taking his cars to the festival and, he said, the event had never been bigger or better.

“It was really good and we had a lot of fun. There was a great turn out and so many good cars were there. The quality was excellent.

There were about 1300 vehicles there and it was hard to get around them all.”

July 2014 Motor Trader | 31

Industry insight

HOW TO BE SURE YOUR BUSINESS IS MAKING MONEY A SIMPLE WAY TO ensure business profitability and healthy cash flow is to focus on what drives both.

• What drives revenue needs to be understood.

• How saleable is the product or service and what’s the market?

• What marketing is working and how much is it costing to acquire a customer?

• Is it profitable revenue?

• How does the true cost of delivering the product or service compare with the price?

• Are customers returning and if not why not?

One of the biggest missed opportunities we see in business reports is lumping all revenue into one account and not breaking it down into categories.

Breaking down, not only the revenue, but the costs associated with each revenue source, enables you to see clearly where you’re making and losing money.

Pricing of products and services is vital to profit. To ensure profit it’s vital to know the true cost of the product or service and keep an eye on it, to avoid ‘margin squeeze’ i.e. allowing costs to rise without increasing prices and absorbing extra cost. Market forces have an impact on pricing but it’s not viable to continually absorb cost increases without price increases. It’s not always necessary to increase everything.

Example: One client recently told us they hadn’t increased prices for years.

We did some analysis to find out what were their best selling products. On each of these we agreed to a small increase with no resistance from customers.

A small regular price increase is much easier to achieve irregular big ones.

Most customers expect a CPI increase and if it’s written into contracts, it’s much easier to achieve.

Costing of products and services is vital knowledge to work out gross profit.

32 | Motor Trader July 2014

Gross profit is the difference between revenue and costs and is an important benchmark. Cost of products may include: the product, importing, freight, packaging, labour, warehouse, raw materials etc.

Cost of jobs may include: labour, materials, out of pocket expenses etc.

If gross profit is below expectations it may be necessary to assess how products and services are costed and acquired.

Example: We had one client in a wholesale business whose packaging was a large portion of costs. When we questioned their ability to negotiate a better price with the supplier, they said it wasn’t possible. We did some shopping around and found a supplier who offered a 10% reduction. The regular supplier soon agreed to a similar reduction.

Labour is another example of cost management on jobs. It’s often the case where chargeable labour spends time doing non chargeable work such as admin. If you take the number of people, and calculate the total hours spent on admin multiplied by their hourly charge out rate, it’s often the case that the cost of employing someone else to do it, is less than the missed income.

Overheads can get out of hand where there is no budgetary control. Owners don’t always have time to keep an eye on what everyone is spending, or shop around for the best deal. A budget can be a saver as well as keeping your banker happy. Also giving someone the task of shopping around for better deals on supplies can be a saver.

One overhead that can get out of hand is wages. Often in a growing business, staff are employed to meet demand, without proper job descriptions. An organisational chart can be useful for a growing business.

Begin by listing all tasks in the business, then list who currently does them. Any overlaps and gaps should

become obvious and job descriptions can be realigned to suit.

Debt collection is an area that has blown out recently. Dunn & Bradstreet recently reported that average collection days were 55.6 days.

Compare this to your 7 day terms to see what impact this is having on cash flow. Start with Terms of Trade so your customers understand the expectation.

Invoice as soon as the product/service has been delivered or get a deposit or progress payments. Then follow up smartly. Email follow ups for small amounts and phone calls for large amounts. Keep good records of reasons/excuses for late payment and agree to outstanding amounts being paid off in instalments over a period.

Stock and Jobs can be a huge drain on cash flow. Think of stock as dollars piled up on the stock room floor and jobs in progress as dollars on the work room floor. It really pays to reduce the time stock sits in store and jobs wait to be finished and invoiced. Good records and planning are vital to management of both. There are some cost effective online systems available that can save thousands of dollars in working capital requirement to fund stock and jobs.

Examples are Unleashed Inventory Software and WorkflowMax Job Management Software, both of which link to Xero Online Accounting Software.

Slowing down payment to suppliers is often the last resort where there’s cash flow problems.

Often we see suppliers being paid too quickly or worse being overpaid.

A close eye on this area can provide much needed cash.

CFO On-Call is a team of financial and business advisors who work with openminded people, committed to business growth and achieving success. For help call us on 1300 36 24 36 or visit our website www.CFOonCall.com.au

Driving the Future of Queensland Agriculture • Toowoomba – 2–4 September 2014

EXHIBITOR NEWSLETTER

Heritage Bank Ag Show focuses on Innovation, Education and Export Opportunities

ISSUE 8 JULY 2014

Heritage Bank Ag Show, to be staged at the Toowoomba Showgrounds from the 2nd to the 4th September is focussing on adding value to all the exhibitors by providing real tangible benefits to patrons through a focus on innovation, education and export opportunities.

Partnerships have been established with the University of Southern Queensland and Trade & Invest Queensland to promote innovation both locally and abroad.

Through our agreement with AGREX & Food Korea, we will be welcoming up to 10 international companies from Korea, Taiwan and India, who will not only be displaying at Ag Show but will be heading a delegation of international agribusinesses. This will include coordinated tours of Darling Downs Primary Producers and businesses.

We are also working with the Wellcamp West Airport, due for opening in November, to connect local producers to export markets in Asia and the Middle East.

Our market research has indicated that although buyers can source a lot of information regarding the latest release machinery via the internet, they still like the opportunity to “climb into the cab” and connect with the local representative. As we all know service is king. To this end we have included an additional demonstration area for tractor and tillage distributors to showcase their products in a safe and controlled environment. If you would like to take advantage of this demonstration area at no extra charge for either tractor or excavating equipment please contact us.

all exhibitors who will be attending Heritage Bank Ag Show through full page advertisements in Rural Weekly.

As a not for profit, community organisation, with a charter of promoting agricultural excellence, the Royal Agricultural Society of Queensland is committed to providing the best outcomes for exhibitors, patrons and of course Queensland agriculture.

We have already included additional benefits to our exhibitors through reduced site fees, flexible site sizes, a range of networking functions including the Darling Downs Rural Ambassador Awards, TSBE Agribusiness Lunch, G’Day Asia Cocktail Party and Rural Press Club Breakfast.

Include this with the Heritage Bank Seminar Series and our Innovation and International Precincts and Heritage Bank Ag Show does tick all the boxes.

There are limited sites available in most areas but sites are selling fast with three quarters of the venue now sold.

If you would like to be part of this exciting event that focuses on tangible benefits for exhibitors and patrons, please contact me on 4634 7400, 0429 347 002 or email rasq-ceo@rasq.com.au Until next time.

We will also be commencing a marketing campaign in the coming weeks to promote

A ROYAL AGRICULTURAL SOCIETY OF QUEENSLAND MANAGED EVENT For further information contact Damon Phillips, CEO, RASQ on 07 4634 7400 or email rasq-ceo@rasq.com.au

Genuine Honda?... Not quite.

From the outside it may look like a genuine Honda. Look closer and it’s not all that it seems.

Non-genuine parts have made it less than a real Honda after an accident repair.

Honda Genuine Parts purchased from your Honda dealer are designed and built to exacting specifications to keep your Honda genuine, and come with our 12-month warranty*.

Not all motor insurance policies use genuine parts for accident repairs.

We recommend Honda Insurance^.

For your nearest Honda Dealer call 1800 804 954 or visit dealers.honda.com.au ^Honda Insurance is underwritten by Allianz Australia Insurance Limited AFS Licence No. 234 708 ABN 15 000 122 850 (Allianz).

In arranging this insurance Honda Australia Pty Ltd ABN 66 004 759 611 and the Authorised Honda Dealers act as agents of Allianz and not as your agent. We do not provide advice on this insurance based on any consideration of your objectives, financial situation or needs. Policy terms, conditions, limits and exclusions apply. Before making a decision, please consider the relevant PDS available from participating Honda Insurance dealers or the Honda Australia web site. If you purchase insurance we receive a commission. You can ask us for more information before we provide our insurance services.

HP1526_MTA QLD

*Subject to terms and conditions. Please speak to your Honda Dealer.