Motor Trader, July 2015

JUL 2015

E P Y H E H T E V E I L E B R A C R E P Y H E H T F O E G A THE

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

MEMBERS CLASSIC: 1966 MUSTANG

SHIFT YOUR

DEALERSHIP INTO

TOP GEAR

NADA UNIVERSITY COURSES ARE NOW AVAILABLE THROUGH AADA, INCLUDING: Service Department Operations Management Sales Operations Management I Sales Operations Management II

PHONE: 07 3237 8777 OR EMAIL: COURSES@AADA.ASN.AU WWW.AADA.ASN.AU

IN S T IT U T E O F T E C H N O L O G Y

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 EDITOR Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Paul Murray POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Barry Browne 03 9807 9154 Email: barry@barrybrownemedia.com.au EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement.

For more information telephone the Editor 07 3237 8777

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SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually

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MOTOR TRADER PUBLISHING POLICY Motor Trader is the official publication of the Motor Trades Association of Queensland.

The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry.

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

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MTA QUEENSLAND ABN: 74 028 933 848 CORPORATE PARTNERS

02 From the editor 04 Policy/Viewpoint

Training matters Members matters Member profiles Industrial relations

33 News FORD TO RETURN TO LE MANS IN 2016

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Feature 10 BELIEVE THE HYPE

30 The hit list TOP OF THE CLASS: HYPERCARS

16 Members Classic COOL RUNNINGS: 1966 FORD MUSTANG

32 Industry insight

FIVE MYTHS ABOUT BUSINESS GROWTH

08 MTA Q&A

JAX TYRES: WAYNE GOUGH

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MEMBERS ESSENTIALS

July 2015 Motor Trader | 1

From the editor

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JONATHAN NASH EDITOR

ELLO AND WELCOME to the July edition of Motor Trader.

In our main feature this month we take a look at the 'Hypercar'. A relatively new term, it is being used more and more frequently to describe the quite astonishing cars that are becoming available to well-heeled buyers.

Often luxurious but always incredibly fast, incredibly powerful and incredibly expensive, the hypercar is also incredibly exclusive with production numbers always small, sometimes in single figures.

Some of the manufacturers' names are well-known - Pagani, Bugatti, Koenigsegg, Ferrari and McLaren for example, but there are far more manufacturers out there - small, boutique firms - which are challenging the established names and joining the hypercar production fun.

It's true, of course, that most of us will never be able to afford a hypercar - a car can't even be considered to have hypercar status unless it nudges the $1million mark - but it is also true that some of the engineering and design genius that goes into them, much of it derived from the world of motor racing, will, at some point, find its way into the sedans and station wagons on our roads.

In our MTA Q&A feature this month we talk to Wayne Gough from Jax Tyres in Ipswich. An industry veteran, Wayne has spent more than 40 years in the trade and has been running and

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 both the best and brightest MTA Institute of Technology trainees and apprentices, as well as the most creative and generous member businesses through the Innovation Award and the Community Award.

Date: Saturday 31st October 2015 Time: 6:30pm - 11pm Venue: Hilton Brisbane

2 | Motor Trader July 2015

developing his shop for 11 years.

The Member's Classic car this edition is a fantastic-looking 1966 Ford Mustang convertible owned by Chris Hunkin, a trainer with the MTA Institute of Technology. Chris spent 18 months whipping the 50-year-old pony car into shape and, it has to be said, it is looking pretty darned good.

In other news this month, we look at the new pre-vocational course now available for those interested in exploring the possibility of a career in the automotive industry, and make a return visit with Luke Roxburgh, the young man who suffered terrible injuries when hit by a train and who returned to restart his apprenticeship ten years after the accident. Now in the second year of his Light Vehicle training, Luke has won the MTAIT Student of the Month award - fitting recognition for a young man excelling in his work.

As always, we will endeavour to bring you news and insight into the industry, information on the latest training opportunities and highlight members' interests.

If you have a story worth telling, want to appear in Member Profiles, or have a classic car, bike or truck you would like to see featured, then please don't hesitate to contact me.

Cheers, Jonathan Nash jonathann@mtaq.com.au

RTO No: 31529

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GE N A H C E H T E K A M O N (07) 32378777 T

Policy/Viewpoint

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KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

CROSS THE SOME 80 years of representing and advocating on behalf of the motor trades, the Association has been blessed with committed and quality leadership.

On June 30, 2015, the curtain came down on another era of such leadership - Ian Martin Field’s contributions to MTA Queensland, which spanned some 35 years.

Across those years, he has been a member who aspired to make a difference and did so with his forward thinking, his determination to grow the Association from a commercial perspective and to foster advocacy for the membership.

Ian’s service included District Representative for South East South Region which entitled him to a position on the MTA Queensland Board; President of MTA Queensland 1996 - 1999; MTA Queensland Secretary Treasurer 2002 - 2009; Chairman of Australian Automotive Dealer Association - Queensland (now Queensland Motor Dealer Council) 2005 - 2009 and Chief Executive Officer from 2009 to June 30 2015.

Ian was the driving force for the rebirth of the Australian Automotive Dealers’ Association in 2014 and is its Chairman.

Ian has been involved with the business over a long period of time and the MTA Queensland today is grateful for his significant contribution over this period. On behalf of President David Fraser, the MTA Queensland Board and Senior Management, I thank Ian for his commitment and leadership to the automotive industry and the Association across these years.

MEMBERSHIP Whilst reflecting on Ian’s contributions, I remind members that the next couple of months is the period for Annual General Meetings. I encourage members who may want to contribute to one of the ten industry divisions to nominate. Distance is not a difficulty now. As I’ve indicated many times, here at the Sir Jack Brabham Centre 4 | Motor Trader July 2015

of Excellence we have efficient and practical teleconferencing technology.

Ballots are democratic and members are directed to the Association’s constitution regarding the process.

A new membership innovation is our monthly e-news bulletin Accelerate which will keep members up-to-date with industry-wide news, policies, business trends, training and interesting bits and pieces about the activities of members. If you have some industry or members' news, let our Editor Jonathan Nash into the secret so it can be shared.

I remind members that the end of the financial year is not only about sales and ‘doing the tax’ it is also about membership renewal and we thank members for their support and perserverance with our new electronic renewal system.

Now more than ever, the automotive value chain membership needs the services and the strong advocacy that comes from a proven performer - as has been the hallmark of this Association for over 80 years.

Divisional Executive Andy O’Hearn and I were in Cairns in early June to speak with members about their business issues and needs. Such visits allow us to promote the services and the new innovations that we have put in place and to ensure knowledge of them.

ADVOCACY In May’s Viewpoint I indicated that former CEO Ian Field and I met with Manildra Group’s Corporate Affairs Manager Kirsty Beavon for a briefing on the biofuels industry and the proposed introduction of an ethanol mandate in Queensland.

Ms Beavon has advised she will be returning for an update in view of the Queensland Government’s ministerial forums being held across the State and in the lead up to 3 July closing date for submissions to the ‘Towards a clean energy economy; achieving a biofuels mandate for Queensland’. Her visit is timely as we are the process of finalising our submission.

President David Fraser, along with other stakeholders, was invited to contribute to the draft - a vision development of a Long Term Transport Strategy for Queensland to establish long term direction for the transport system. The focus was on economic, social, technological, legal, environmental, regional and political challenges and priorities.

In addition, I met with the Shadow Minister for Transport and Main Roads the Hon Scott Emerson to discuss the transport policy matters.

INFORMATION TECHNOLOGY There was interesting data from the Australian Bureau of Statistics (ABS) about business use of information technology (IT). Key indicators of business use of IT include: internet access; web presence; social media presence; the use of broadband; and internet commerce (i.e. the placing and receiving of orders via the internet).

Between 2012-13 and 2013-14, most key indicators of business use of information technology have increased. Internet access was at all time high of 94.7 per cent and web presence was steady at 47 per cent for the two years 2011-12 and 2013-14.

The greatest change was in the proportion of businesses with a social media presence, which recorded a 12 percentage points increase from 201112, to be at 31 per cent. The proportion of businesses receiving orders via the internet increased between 2012-13 and 2013-14 by three percentage points to 33 per cent. The value of income derived from the sale of goods or services via the internet increased by 8 per cent, from $246 billion in 2012-13 to $267 billion in 2013-14.

INVOICE PAYMENT TIMES Dun & Bradstreet’s (which is one of MTA Queensland's corporate partners) Trade Payments Analysis reveals that average invoice payment times was 50.4 days during the first quarter of the year, down from 56 days a year earlier. The current rate is the fastest measured for the period in the eight-year history of the data. The sharp drop in payment times over the past 12 months was driven by a jump

in the percentage of invoices settled within 30 days, which lifted from 44 per cent to 56 per cent.

The latest findings reflect the positive impact of low interest rates on cash flow and the improved efficiency of the business sector in the post Global Financial Crisis environment.

This means the lower cost of debt is helping businesses to manage their repayment and control their cash flow in an operating environment of soft demand.

Despite the improvement, 44 per cent of commercial invoices in Australia are still being paid late, which withholds significant amounts of money from the financial system and places financial strain on supply chains.

FUEL EXCISE The re-introduction of the indexation of fuel excise to inflation flagged in the 2014 Federal Budget is in the process of becoming a legislated reality with the decision of the Australian Labor Party to support the measure in both houses of Parliament.

The rate increase took effect from November 10, 2014 with the help of a tariff measure resulting in a rise from from 38.143 cents per litre to 38.6 cents per litre.

The typical household, using about 50 litres of fuel a week, pays about 40 cents a week more for their fuel.

It is expected to raise $2.2 billion over four years.

INDUSTRIAL RELATIONS The Fair Work Commission handed down a landmark decision with respect to annual leave provisions.

It addresses the lack of flexibility in the modern award system. The decision will result in: • employers being able to direct employees to take paid annual leave in circumstances where the employee holds excessive accrued annual leave balances; • employers and employees being permitted to cash out a portion of annual leave, should they wish (subject to relevant safeguards); • employees being able to be paid annual leave in accordance with their usual pay cycle (as opposed to

leave being paid up front) where the employees are paid by EFT; • employers being able to grant employees leave in advance, subject to protections being in place, so that the employers are not left short-changed if employees leave employment with negative leave balances.

MODERN AWARDS All modern awards have been updated in accordance with the Annual Wage Review 2014-15 decision to include adjusted rates of pay and allowances and come into force 1 July 2015. The modern awards are available on our website.

If members have queries on the modern award applying to their business, our industrial relations team led by Ted Kowalski stand ready to provide advice.

AUSTRALIAN CONSUMER LAW (ACL) A review of the ACL will commence in 2016. The review is necessary to satisfy underpinning Agreements that require the effectiveness of the ACL to be examined, and for the shared enforcement and administration arrangement supporting the ACL be undertaken within seven years.

The review will be conducted by the Consumer Affairs Australia and New Zealand with the final report by March 2017. There will be a consulting period beginning in 2016 with stakeholders that will include consumer representatives, businesses and the wider public.

The MTA Queensland has been an active participant by way of submissions and attendance at roundtables in the development of the ACL, and again will be actively involved in the consultation process on behalf of members.

LEMON LAWS IN AUSTRALIA Members may have noticed that there is an e-petition circulating in Queensland requesting that the Queensland Parliament introduce lemon laws in the State to protect Australian consumers with the long term plan to release for national acceptance. A joint communiqué from the recent meeting of Ministers July 2015 Motor Trader | 5

Policy/Viewpoint for Consumer Affairs advises that ‘as existing protections fall within the scope of the ACL … it would be preferable to have a nationally consistent approach; Consumer Affairs Ministers preferred that the issue of lemon laws be considered as part of the general review of the ACL.’

QUEENSLAND STATE BUDGET The Queensland State Budget is due to be brought down on Tuesday 14th July. In recent times, we have been included in the ‘lock-up process’, giving early access to the Budget documents. I am hoping the same arrangements will apply. I will have a brief on the website inasmuch as the budget policies and funding priorities relate to the automotive value chain.

SINGLE TOUCH PAYROLL In past Viewpoints, I’ve mentioned the Australian Taxation Office (ATO) Single Touch Payroll system. Initial feedback to Government from business is that a start date of July 2016 will not be achievable due to the cash-flow implications for businesses of real time payments.

There is recognition that the Single Touch Payroll will be a large change for all businesses, especially small business. Treasury and the ATO will continue to consult with the business community and software industry on the scope and timing for the Single Touch Payroll initiative and the feasibility of conducting targeted pilots from July 2016.

As indicated previously, under Single Touch Payroll, employers’ accounting software will automatically report payroll information to the Australian Taxation Office (ATO) when employees are paid. This will eliminate the need for employers to report employee-related Pay As You Go Withholding in their activity statements throughout the year and employee payment summaries at the end of the year. In addition, the Government will streamline Tax File Number declarations and Super 6 | Motor Trader July 2015

Choice forms by providing digital services to simplify the process of bringing on new employees.

ECONOMY The recent good economic news was that the ABS Labor Force data for May 2012 revealed the unexpected outcome that nationally, jobs were created and the unemployment rate decreased 0.2 per cent to be at 6 per cent (seasonally adjusted (sa)). The better news was that in Queensland the unemployment rate fell from a high of 6.6 per cent sa to 6.3 per cent.

This meant a total of 18,700 jobs were created - 9,000 full time and 9,700 part time jobs.

This better jobs outlook was reflected in the National Australian Bank’s monthly survey which indicated that the recent Federal Budget and interest rate cut appeared to have had a positive impact on business confidence - which moved up significantly in May - from +3 to +7 index points. This is the highest level of confidence since August 2014 and has helped to turn the trend more positive. The pick-up in confidence could also reflect improved business conditions. Business conditions rose from +4 to +7 points in May (and the highest read since October 2014), further cementing the upward trend seen over recent months.

The Reserve Bank Board next meets on Tuesday 7th July. At its June meeting the cash rate of 0.2 per cent was left unchanged. The Board was of the view that, having eased policy at the May meeting, the current cash rate should be maintained and to assess information on economic and financial conditions as it became available. That data would then inform the Board's assessment of the state of the economy and the outlook for future cash rate considerations.

NEW MOTOR VEHICLE SALES The ABS (seasonally adjusted) Queensland May data indicated there were 19,004 new motor vehicle sales a decrease of 319 units or -1.6 per cent

on April sales. Nationally there was a decline of -1.3 per cent. Compared with May 2014, new motor vehicle sales were up by 526 or + 2.9% per cent and nationally there was a rise of +0.8 per cent.

The respected VFacts data indicates that Queensland’s May new motor vehicle sales were 19,312, an increase of 60 or +0.3 per cent compared with May 2014. On a year-to-date basis, Queensland’s total new car sales numbered 93,928, up 3,535 or +3.9 per cent, which compares favourably with the national increase of +2.5 percent.

Light commercial vehicle sales across the nation increased by 1 per cent and were up 3.6 per cent year-todate. These vehicles were popular with government and business buyers in May, with sales to these buyer types up 5.9 and 2.7 per cent respectively. While light commercial sales to private buyers declined 2.6 per cent compared to May 2014, private purchases of light commercials are up 11.2 per cent year-to-date.

SUV sales were up 5.8 per cent, led by sales of small SUVs which were up by more than 20 per cent, compared to May 2014. Private buyers purchased 10.1 per cent more SUVs in May 2015 than in May 2014. SUV sales are up 13.5 per cent year-to-date.

Passenger car sales declined 7.3 per cent, with the segment accounting for less than 44 per cent of the market in May. Year-to-date, sales are down 5 per cent.

PRESIDENTS BALL Have you put The Presidents Ball in your diary - Saturday 31 October at the Hilton Hotel, Brisbane? It is a night to enjoy and observe the achievements of trainees and apprentices from our MTA Institute of Technology as well as congratulate our diverse membership on their individual acts of generosity and innovations. I will be looking for skills on the dance floor too.

In the mean time, stay safe. I’m having a couple of weeks away.

Jackson, my young son wants to teach me snowboarding!!

INSTITUTE OF T EC H N O L O G Y

NEW G LIMITE OVERNME D PLAC NT FUN ES APP DING LY NOW

GET YOUR TRADE SKILLS RECOGNISED

Do you have trade skills and experience but no formal qualifications?

TRADE RECOGNITION Trade skills recognition is a way of gaining formal recognition of your skills and work experience. If you have not completed an apprenticeship in Australia or you have gained trade skills overseas, you can have your skills, work experience and trade qualifications nationally recognised.

Recognition of work or training (trade recognition) allows people to gain a certificate of recognition in Queensland in an apprenticeship trade, where: • A formal apprenticeship has not been completed • An apprenticeship or trade training has been completed overseas

PARTICIPANT ELIGIBILITY 1. Be an Australian citizen, a permanent resident of Australia and living in Queensland or a Refugee and Humanitarian Visa holder living in Queensland 2. Be a skilled or experienced individual without a trade qualification, whose experiences are such that it is reasonable to assume you could achieve two thirds of a qualification or more through RPL assessment processes in a priority trade 3. Be 18 years or older 4. Express a commitment to gaining the entire qualification

MTA INSTITUTE OF TECHNOLOGY OFFERS TRADE RECOGNITION FOR THE FOLLOWING QUALIFICATIONS • • • • • • • •

Agricultural Mechanical Technology Automotive Electrical Technology Automotive Body Repair Technology Automotive Refinishing Technology Heavy Commercial Vehicle Mechanical Technology Light Vehicle Mechanical Technology Mobile Plant Technology Motorcycle Mechanical Technology

The Queensland Government covers the majority of the cost for trade recognition other than mandatory fees determined by Government.

COURSE LENGTH Once an application has been received with all supporting documentation, MTA Institute of Technology will assess and respond within 10 working days.

Evaluation can be completed at MTA Institute of Technology’s Eight Mile Plains premises or alternatively on site at the applicants workplace.

ENROL Should you wish to obtain more information regarding trade recognition, please contact one of our friendly team using the contact details below.

RTO No: 31529

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

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MTA INSTITUTE OF TECHNOLOGY

MTA

QA &

What goods and services does Jax Tyres West Ipswich provide?

WG: Tyres are the core of our business but we have now incorporated wheels and mechanical. Mechanical is becoming a bigger part of our business and we are an obvious point of detection - after all, we take the wheels off, we look at the brakes and so on. People don't often check their brakes, so when they come in to get their tyres we check everything.

What's your background in the industry?

“IF YOU OFFER A GOOD SERVICE AND A GOOD

PRICE - THEY ARE TWO KEY THINGS. WE OFFER SERVICE, PRICE, PRODUCT AND PERSONALITY�

- WAYNE GOUGH

WG: I started as an apprentice mechanic in 1968. I took a bit of a shine to tyre fitting - there were no machines in those days - and when I left some years later I bought my own service station and converted one bay into a tyre shop. From there - and I was there for quite a few years - I went to Boral Tyres and then on to Michelin as a sales representative.

I progressed with Michelin to become a major accounts manager and looked after an area that ranged from Cairns to Coffs Harbour and west to Mt Isa, and one of my accounts was Quickfit. I was servicing them and helping them as they were expanding, and when they reached about 18 stores they made me an offer to join them, so I bought into the company.

I was there for a few years and we went from 18 to 38 stores and it was about then that I decided to move on and took on this store. The plan was to come here for a year and get it going - and I've now been here for 11 years! I was fitting my first tyre in '68, and I am still fitting them now - I don't know what I want to do when I grow up!

Wayne Gough is the owner of the Jax Tyres store in Ipswich, west of Brisbane. Over his more than 40 years in the business, he has seen the industry evolve and develop and Motor Trader caught up with Wayne to talk tyres, business and the future of the industry.

What's it like working for Jax? WG: When I took over this store it was owned by Quickfit. A couple of years after that, Quickfit were in negotiations with JAX and they joined forces. That was a marriage made in heaven and being part of a big franchise like JAX is brilliant. I have watched the company grow and one thing about this group is that it is supportive, progressive and intuitive 'Head Office' is very open to ideas.

Anyone who was thinking about going into a franchise should think about us - we have over 80 stores now and more opening all the time.

Who are you customers?

WG: We get the whole demographic. In fact, I've been here long enough to have seen three generations of families come to us. I could actually name several families where the son, father and now the grandson come and buy tyres here.

Every major manufacturer, including Michelin, Bridgestone, Dunlop, Goodyear, Continental, Pirelli, Maxxis and Hankook are part of our range so, from a Hyundai Excel to a $150,000 Mercedes - we have the product to cater for them.

We offer suggestions to our customers based on a number of things such as longevity, how good a tyre is in the wet and the dry, the price point and so on, and we always recommend 'good, better, best'. We let the customer make the decision.

However, the customer is here because they are relying on me to help them make that decision, to use my experience to assist them, and probably 75 per cent of what goes out

“THE CUSTOMER IS HERE BECAUSE THEY ARE RELYING ON ME TO HELP THEM MAKE A DECISION, TO USE MY EXPERIENCE TO ASSIST THEM.� the door is what we recommend.

But you can't have a preconceived idea of what people want in this business - you can't assume that someone wants the cheapest tyre in the shop.

Someone might be a real connoisseur of driving and want the very best tyre - and there are plenty of people who are getting more and more educated about tyres. And that is a good thing.

What is it about your store that generates customer loyalty?

WG: I've got a philosophy, that I've had since day one, that I treat every customer as I want to be treated.

My staff are disciplined to do the same and all of them have great personalities, which is why they are employed here. If you offer a good service and a good price - they are two key things. We offer service, price, product and personality.

Back in 2008, we won Business of the Year through the Queensland Times newspaper and that was an award voted for by the public - we took a lot of pride in that.

How do you see the tyre retail business evolving?

WG: It is getting to the stage where most people will be ordering online.

From a growth point of view, alot of business is coming from the internet and I imagine that online traffic will grow.

The company works constantly to improve things and, right now, people can go to our website to choose tyres, to see the tread pattern, to check out sets of wheels, and even see what those wheels look like on their car.

All of that can be done online.

As for tyres, there are already airless tyres - tyres made with blades that absorb any bumps. There are no wheels as such and all you have to do is replace the tread on the outside, like a rubber band. This is already a reality and there are a lot of other innovations on the horizon.

How many staff do you have?

WG: We have one mechanic, two tyre fitters, a wheel aligner, counter staff and myself. I still get into the workshop too but I have been crook recently and the boys don't let me do too much - but I like to get in there.

My wife does come in one day a week to help out and my son Mitchell works here too.

Mitchell came here to work as a tyre fitter, and he has become a great tyre fitter and wheel aligner and has a brilliant knowledge of the products the customers love him.

What does the future hold?

WG: The store is going to be refurbished in August and that will happily coincide with our 11th birthday. And we will keep moving and evolving with the industry - the shop has a lot of potential to grow.

July 2015 Motor Trader | 9

W

HAT WOULD YOU do if you won big on the Lotto? And we mean ‘BIG’ . . . the sort of win that, if not exactly buying you happiness, will fund your search for it for the rest of your life. It’s a question that most of us ask ourselves at one time or another, and it’s likely that the top answers to that question include a new house, a long holiday to somewhere exotic, and a future free of that mundane and tiresome routine known as ‘work’.

Of course, the other item that might appear on the list is a new car . . . after all, now you’re loaded, that five-year-old sedan with the dented bumper and faded fabric on the seats just won’t cut it with your new chums down at the Country Club.

So, if money were truly no object, which dealership would you head towards with your bulging wallet?

Would you plump for some serious British upmarket luxury – a Bentley or Rolls perhaps? Or perhaps you might favour Italian flair or German precision?

But what if you’re wallet could finance something even more special than a 911 or a Quattroporte?

What if you could now consider purchasing that most rarified of vehicular species – the Hypercar?

Not sure what a hypercar is?

Well, the term can mean something a little different depending on who you talk to, but just about everyone agrees it refers to cars that are truly exceptional in some way, that are at the pinnacle of performance and style as we know them today, and that are just that bit more special than a Supercar.

To some, that

BELIEVE 10 | Motor Trader July 2015

means cars that are at the very cutting edge of technology, that display the latest advances in engine development, aerodynamic form, hybrid enhancement and lightweight construction materials (think the hybrid McLaren P1 or Ferrari LaFerrari). To others, a hypercar is about performance, power and style, and if that means dropping an engine the size of a small planet into a car to give it the oomph required to set record speeds, then so be it (think the Bugatti Veyron).

Of course, to the majority of the public, such distinctions are irrelevant and a hypercar can really be boiled down to a pretty simple description – it must be knee-shakingly quick, have a production run that makes it as rare as an honest politician and be

expensive enough to scare off the single-digit-millionaire riff-raff. Beyond that, a level of luxury and personalisation that would make each car unique to its owner could be somewhere in the mix and, in certain cases, the car might also be built as a racetrack-only model - allowing the uber-rich to drive uber-quick as they live out their dreams of being Fangio, Prost or Senna (think the Ferrari FXX-K, the McLaren P1 GTR or the Aston Martin Vulcan).

Motor racing has, in fact, had a lot to do with the development of the hypercar (McLaren, founded by F1 driver Bruce McLaren in 1963, created perhaps the first true hypercar with the F1 in the early '90s). Both Formula One and the World Endurance Championship (WEC) – which includes the 24 hours of Le Mans in its season – field cars built by companies which also build road cars, so it is no surprise to find the technology required to build cars for those events has found its way into hypercars.

In both the WEC and F1, for example, there are regulations that require cars to use

THE HYPE PAGANI HUAYRA

Engine: 6-litre twin-turbo V12 // Power: 730hp // 0-100km/h: 3 seconds // Top Speed: 370km/h // Price: $1.6million The Huayra (pronounced why-ra) may not be the fastest, the most expensive or even the most exclusive (100 units are to be built) of hypercars, and it also suffers from being saddled with one of the dafter names for a car (company blurb says the name comes from an ancient God of wind, or some such nonsense) but it must surely be one of the most beautiful cars yet to grace Planet Earth. A true work of art, the Pagani designers, led by company founder Horacio Pagani, have not put a foot wrong.

July 2015 Motor Trader | 11

PORSCHE 918 SPYDER (HYBRID) Engine: 4.6-litre V8 // Power: 608hp, 887hp with electric motors // 0-100km/h: 2.6 seconds // Top Speed: 345km/h // Price: $1.5million News came out in June this year that the last 918 had been manufactured and sold (the 918th unit as it happens). Appearing as a concept car in 2010, the production version appeared nearly four years later and all had been sold within 12 months.

Supremely powerful, the Spyder's hybrid set-up would see it set a production car record of 6min 57sec for a lap of Germany's famous Nurburgring - just another element that will surely see it become one of the most coveted of hypercars on the market.

hybrid systems (Kinetic Energy Recovery systems (KERS)) coupled to relatively standard, small, internal combustion engines. To get the power and speed needed to win races, manufacturers pour millions into fine-tuning the powertrain and trimming every ounce of fat from the car using lightweight materials such as carbon fibre.

On the race track, this results in cars such as the Porsche 919 Hybrid in the WEC which, with a 2-litre turbo-charged V4 saddled to a KERS system powering electric motors, registers 900hp and a top speed over 320km/h.

Transferring this technology to road-going hypercars is logical, and the results are equally as remarkable as the track cars. Ferrari launched the LaFerrari in 2013 – a $1.5million, 960hp hybrid monster capable of 350km/h. Full of race car inspired technology, including being Ferrari’s first production car to be equipped with the F1-derived HY-KERS - the LaFerrari itself became a step in the development of the even more powerful, 1035hp, track-only FXX-K, launched in 2014.

McLaren has got into the track-only act with the P1 GTR, an upgrade of its road-going hypercar counterpart, the P1. The

12 | Motor Trader July 2015

$3.5million GTR has a twin-turbocharged 3.8-litre V8 and a hybrid system that gives it a total of 986hp, figures of 0-100 in less than 2.8 seconds and a top speed over 370km/h.

Porsche’s 918 Spyder combines a 4.6-litre V8 with electric motors to deliver nearly 900hp and a top speed of 345km/h, and Lamborghini - which delivered the absolutely bonkers, non-hybrid, 740hp, 355km/h, Veneno hypercar – has also joined the hybrid revolution, exhibiting its 910hp Asterion LPI 910-4 concept at the Paris Motor Show last year.

Away from the hybrid mix though, there is the Bugatti Veyron, a hulking brute of a car that has been thundering around the planet since 2005. To many, it is the ultimate expression of the mad genius that goes into the production of a hypercar. Utilising pure, internal combustion brutality, in its ‘Super Sport’ guise, the Veyron is the world’s fastest production car - its 8-litre, W16 Quad turbo-charged engine churning out 1200hp and pushing it to a top speed of 431km/h.

Only 30 of the ‘Super Sport’ models were made and it was recently announced that production of the Veyron (in all its guises) would end this year with a total of 450 units having been built.

McLAREN F1 Engine: BMW 6.1-litre V12 // Power: 620hp // 0-100km/h: 3.2 seconds // Top Speed: 390km/h // Price: $1.3million (in 1993) An absolute classic, the F1 was the world's fastest production car for nearly a decade and is still, more than 20 years after it was conceived, in the top 5. Using what was, at the time of its construction in the early 90s, cutting edge technology and materials - including lining the engine compartment with gold to diffuse engine heat - the F1 has gained in status over the years.

And its value has rocketed too - English comedian Rowan Atkinson sold his F1 this year for more than $15million.

FERRARI FXX K (HYBRID) Engine: Ferrari 6.3-litre V12 // Power: 848hp // 1036hp with electric motors // 0-100km/h: 2.8 seconds // Top Speed: 350km/h // Price: $3million A track-only hypercar, the FXX K is as much a test bed for new technologies for future Ferraris as it is one of the world's most expensive and exlusive track toys. As part of Ferrari’s Corse Clienti customer racing program it is maintained by the company, with owners flying in to various race tracks around the world for drive events.

450 units in ten years isn’t a lot, but exclusivity is another prerequisite for hypercar status - no hypercar can ever be mass-produced.

Interestingly, though the companies producing hypercars produce them in small numbers, the number of companies jumping on the hypercar bandwagon is growing all the time. Small, boutique firms seem to be sprouting up all the time, taking advantage of the advances in hybrid and/or lightweight material technologies to design awesome cars stuffed to the gills with epic amounts of power.

Most of us would have heard of Koenigsegg and Pagani for instance, but what about Noble, Gumpert, Spano, Lykan or Mazzanti? Or what about PSC Motors which, according to recent reports, is developing a car called the SP-200 SIN plug-in hybrid with a 9-litre V8/electric motor; or Lyons Motor Car, whch announced it would be developing something called the LM2 Streamliner - a car heavy on carbon fibre, to be powered by a twin turbo-charged V8 developing 1700hp. No doubt by the time you read this, one or two more companies will have made announcements regarding the imminent introduction of another recordbreaking monster.

So, where is this all leading?

Well, hypercars will continue to be built and, over time, variations of the technology used to build and power them will filter down into the small cars and family sedans of our 'normal' world. Hybrid power is, of course, becoming more common (though its use is geared to fuel economy rather than power) and though we won't ever see a 400km/h People Mover doing the school run, seeing one using hybrid technology to shift its carbon fibre and aluminium body down the road is a decent bet.

In the meantime, if you were shopping for a hypercar, where would you go? There are plenty of choices out there.

One thing you might do is wait to see Bugatti's replacement for the iconic Veyron. If reports are to be believed, the proposed car, to be called the Chiron, will churn out 1500hp, go from 0-100km/h in 2 seconds, and reach a speed of 470km/h. It's going to stomp on everything in sight.

No definitive word on price yet but it's safe to say it will be astronomic and only the biggest of lottery wins is going to land one for you . . . Wouldn't it be nice indeed.

⊲ GO TO PAGE 30 FOR THE HYPERCAR HITLIST

McLAREN P1 (HYBRID) Engine: 3-litre twin-turbo V8 // Power: 730hp // 900hp with electric motors // 0-100km/h: 2.8 seconds // Top Speed: 350km/h // Price: $1.7million Successor to the legendary F1, the P1 may not have the threeseat layout of its illustrious predecessor but it is chock full of technology derived from the company's racing car programs, including KERS and a Drag Reduction Sytem, amongst other features. The track-only version - the GTR - was unveiled this year at a price somewhere north of $3million. Only 35-40 models are due to be built and to get your hands on one, you already have to be the proud owner of a P1. Now that's exclusive!

July 2015 Motor Trader | 13

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

Their expert team can help you get the equipment you need, without using up your working capital and impacting cash flow.

Each type of business faces a different set of challenges, so Commonwealth Bank can work with you to find the solution that’s right for your business.

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Commonwealth Bank’s award winning SmartSign®* technology lets you review and sign your finance agreements anywhere, anytime. You only need a phone and online access via a computer, tablet or smartphone.

There’s no need to print contracts, obtain a witness signature or even find a pen.

A solution that’s right for you Whatever the equipment you need, Commonwealth Bank have a range of finance options to help keep your business moving.

These include: • Equipment loans, hire purchases, and leases • Equipment import finance and energy efficient loans • Pre-approved Master Facilities • Vehicle fleet finance and management • Medical and technology managed rentals • Fixed forward rates that lock in a rate for equipment deliveries in the future • Progressive loans that fund equipment as it is being built over time Trucks to tractors, vans to forklifts, whatever you need to run your business, the Commonwealth Bank Asset Finance team is ready to help.

Their Asset Finance team can put credit approvals in place ahead of your delivery date, so when your equipment is ready there are no finance delays. For existing Commonwealth Bank customers, the process is even faster as you won’t normally need to provide additional financials.

For more details, call MTA Queensland, on 07 3237 8777 today.

Important Information: *Money Magazine 2014 winner for Most Innovative Product or Service. AB+F Best Equipment Finance and Leasing Business Bank 2014. The information contained in this flyer is correct as at the time of printing. Master Facility is reviewed annually in line with your financial performance and can be changed in the future. Applications for finance are subject to credit approval and the suitability of the asset. Commonwealth Bank of Australia reserves the right to require finance arrangements to be made with any Commonwealth Bank of Australia subsidiary. Full terms and conditions are included in our documentation. Bank fees and government charges may apply. MTA Queensland may receive a fee from the Commonwealth Bank of Australia for each successful referral. Referral fees are only paid on eligible Business Banking products and services for new product enquiries lodged via the MTA Queensland. Referral Fees are not payable on referrals from existing relationship managed Commonwealth Bank customers. As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances.

Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit license 234945.

COOL RUNNINGS I

F YOU WERE asked the question "Can you name a classic American muscle car?", just what vehicle would come to mind?

Chances are that the Ford Mustang is either the first one that you blurt out, or is at least nestled amongst a group that includes a Pontiac GTO, a Chevy Camaro and the Dodge Charger.

And it's no surprise that the Mustang is in there.

Its classic styling, coupled to the big Ford motors, has proved irresistable over the years, and its appearance in popular movies such as Bullitt, where it was driven by the ultra-cool Steve McQueen; or Diamonds Are Forever, where one was piloted by Sean Connery; or Gone In 60 Seconds, in which it was the object of a car-obsessed Nicholas Cage's affection, have kept the legend alive.

First rolling off the production line in 1964, the Mustang is still being built today, and the 2016 model seems destined to be one of the most popular yet if early reports of a stampede of pre-orders are to be believed.

For Chris Hunkin, an auto-electrical and mechanical trainer with the MTA Institute of Technology (MTAIT), the Mustang bug bit when he was a teenager.

"I've wanted a Mustang since I was 17," he says. "And I always wanted a '66 convertible too. I always loved the look of them and I've always been a Ford man."

It may have taken a few years but Chris finally found the car he always wanted on the Gumtree website. However, it wasn't exactly in tip-top shape and it has taken 18 months to whip the 50-year-old pony car into shape.

16 | Motor Trader July 2015

"It was in very sad condition," says Chris.

"Mechanically, it was a total pig and I've gone through it from the front to back. I've done the gearbox, the front-end, the diff, the brakes. I've rebuilt everything mechanically and I've done all the body too. I've sandblasted and painted the engine bay, painted the body and restored the interior - it has had a ground-up rebuild."

While much of the Mustang is original, one major change over the years has been the engine. At some point in its history the motor was changed for one with a bit more oomph and the original 289 was replaced with the 302 Windsor. But, though the engine was a newer addition, it still needed an overhaul and, like the rest of the car, Chris restored that too.

"The engine is fully reconditioned," says Chris. "I rebuilt it, cleaned it up, painted it, acid-dipped it - the whole lot."

Having been in the trade for 30 years, Chris wasn't afraid to take on such a monster job, and had built-up not just the knowledge and experience to complete such a task, but also the equipment and material to do it at home.

"I have a workshop at my house," he says. "It's fully kittedout with everything needed for a restoration."

The most recent work done on the Mustang, and which was completed just a few weeks ago, was the interior, which

MAKE: FORD MODEL: MUSTANG YEAR: 1966 ENGINE: 302 WINDSOR V8 OWNER: CHRIS HUNKIN OWNED: 2013

has been restored to near original and has some delightful touches, including red stitching that matches the colour of the bodywork.

Not trained as an upholsterer, Chris was able to utilise the massive classic car market in the US to provide a solution. That market is so large that almost any fixture or fitting can be found for a classic car - and at a reasonable cost too.

"You can buy the interior in kit form," he says.

"And the kit is very close to the original look. It has been updated a little bit - originally it wouldn't have had the red stitching for example. And you can get the stitching in any colour you want."

Unlike many classic car owners, Chris doesn't treat the Mustang with kid gloves. While it isn't exactly a 'daily driver' he does drive it regularly, and the car also has a secondary role - Chris uses the Mustang as a teaching tool for his automotive students.

"All my auto-electrical students have done work on it at some point," he says. "Some of them have never seen anything like it before - all they have seen are modern vehicles. So they love working on it and it opens their eyes a bit."

And it's not just the students who get a bit wide-eyed when they see the Mustang - the car turns heads wherever it goes.

"People do stop and have a chat about it," says Chris.

"The Mustang must be one of the most well-known muscle cars around, and I get more of a reaction over this car than any other car I've had."

That's quite a statement from someone who has had a

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.

number of classics sitting in his driveway over the years, including an XW V8 Fairmont, an XB GT Hardtop, various F100 series trucks - including models from 65 and 67 - and an EH Holden.

The Mustang is almost complete now - there are just a few minor elements that Chris still wants to tackle - and it is likely that it will pop up from time-to-time at car shows and other automotive events. But, for Chris, exhibiting his four-wheel pride and joy is not what owning this classic piece of American automotive history is all about.

"I've had it in a couple of shows , but I'm not big on them." he says. "Ultimately, the Mustang is here to be driven.

For me there is no pleasure to be had in just looking at it.

The pleasure is in using it, in driving it."

July 2015 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.

Save with our Corporate Partners

Capricorn makes it easier for its members buy parts, earn reward points and share in the benefits of being a member of the largest and oldest automotive parts buying cooperatives in Australasia.

Consumer Complaints MTA Queensland will assist Member Businesses to facilitate this process in the event of a consumer complaint.

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

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

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

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

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

• 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.

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

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

The highly experienced team at Australian All Energy Solutions provide the most cost-effective and comprehensive solar power packages for any business.

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

Guard Insurance Brokers specialises in insurance and risk management solutions and offers dedicated service to MTAQ members at market leading rates.

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• 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.

MEMBERS ESSENTIALS Contents 19 Training matters 24 Members matters 26 Member profiles

GOLD CITY STEERING AND SUSPENSION ONE TEN MOTORCYCLES SUNSPARES PARTS PLUS

28 Industrial relations

MTAIT trainer Chris Hunkin with students participating in the Cert II in Automotive Vocational Preparation

F

OR INDIVIDUALS LOOKING to enter the automotive industry workforce, the MTA Institute of Technology (MTAIT) now offers a Certificate II in Automotive Vocational Preparation (AUR20712) – a fiveweek automotive fundamentals course designed to give students an understanding of industry basics and expose them to both the workshop environment and the expectations that employers within the industry will have of them.

The full-time course covers a broad range of theory and practical modules, including modules that cover tyres, suspension, safety in the workshop, environmental and recycling considerations, equipment and tools, and even first aid.

“The Certificate II in Automotive Vocational Preparation is an entrylevel qualification that positions a student, once they have finished, to be job-ready,” said MTAIT Senior Trainer,

course

Marcello Riotto. “They will finish the course with skills that will enable them to go into a workshop and work at a basic level. So, for example, if they have a licence, they will be able to pick up vehicles, put them on hoists and do the absolute basic servicing. They will be familiar with mechanical principles, identification of components, tools and equipment and so on.”

The course will also expose students to employer expectations, with the program’s full-time structure mirroring the full business workday.

“We try to mold the students into a working type environment,” said Mr Riotto. “We want to expose them to that work structure and they are expected to be here at 8.30am and be here working until 4pm.”

Aimed at school leavers, the longterm unemployed and those people looking for an avenue to enter the automotive industry, the program is held at the MTAIT facility in Brisbane – July 2015 Motor Trader | 19

E S S E N T I A L S

PRE-VOCATIONAL COURSE A PATH TO AUTO CAREER

M E M B E R S

Training matters

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

MIT TRAINER PROFILE

Training matters a decision that allows for the practical training to take place in the controlled environment of the MTAIT’s state-ofthe-art workshop.

“We provide a simulated work environment here at our facility,” said Mr Riotto. “Thanks to the design of this building, we can offer training in a workshop that was designed to be as close to a real-world workshop as possible.”

There is an interview process for applicants to access the course but Mr Riotto said the eligibility requirements were designed to encourage people to think about the automotive industry as a career opportunity.

“Typically, we have an information seminar where we discuss the course and the hoped-for outcomes with the students,” he said.

“Apart from not already being on a government-funded program there are few eligibility criteria, so a broad range of individuals can apply – from those

SCOTT GEHRKE

who know for a fact that automotive is for them, to those who want to find out if it might be.”

Though the program does not include a set plan for linking students

with an apprenticeship, Mr Riotto said that, thanks to the connections the MTAIT and MTAQ had within the industry, there was always a chance that a pairing of student and employer could be made.

“The ultimate ‘end game‘ for us, as it is for the students, is preparation for an apprenticeship and a career in the automotive industry,” he said.

To find out more about the Certificate II in Automotive Vocational Preparation, contact MTAIT on (07) 32378777 or email training@mtait.edu.au

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

Why should someone consider a career in the automotive industry?

Since MTAIT started training in the Vehicle Body Repair industry in 2012.

Skilled, quality tradespeople are required in the industry, and they can be rewarded well. There are also a variety of other career opportunities available in the industry. I never would have thought I would become a trainer back when I started my apprenticeship in 1988.

What geographical area do you service?

Northern suburbs of Brisbane, Sunshine Coast, Gympie - up as far as Bundaberg.

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

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

Paint, panel and vehicle detailing.

Seeing students complete their trade or traineeship, and knowing I have helped them achieve this goal.

Also, seeing previous students I have trained become successful in the trade as leading tradespeople, business owner’s, etc.

What is your background in the automotive industry?

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

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

I've been involved in the Vehicle Body Repair industry for 27 years - four years as an apprentice, 13 as a tradesperson and almost ten as a trainer (six years at TAFE and almost four at MTAIT).

Make lessons and training interesting and involve the students. Working with industry and employers so latest techniques/procedures can be taught to students.

Spend time with family and friends, 4-wheel driving, race dirt go-karts, drive in weekend sprints at Lakeside raceway and, when time permits, restore a couple of motorcycles I own.

What is your specialised area?

20 | Motor Trader July 2015

I am honest with them. For some it can be tough when starting out. However, I help them look at the big picture, and their future, what skills (life skills as well as technical skills) they will gain from finishing a trade and the opportunities a trade certificate can give them.

Student of the Month

OU MAY REMEMBER that, early last year, Motor Trader met a remarkable young man named Luke Roxburgh - an apprentice Light Vehicle mechanic at Absolute Car Care in Brisbane.

Luke had suffered dreadful injuries when, 11 years ago, aged just 17 and in his first year as an apprentice mechanic, he was hit by a train, dragged along the tracks and trapped beneath the train when it came to a halt. He was lucky to survive the injuries he suffered that day.

"I was trapped for about an hour-and-a-half and emergency services were thinking about removing my legs," said Luke. "Fortunately, they didn't, they were able to jack the train up to get me out.

"I was in a coma for a month and had skin, muscle and bone grafts. Thanks to very good doctors I was able to keep my arm and my legs."

Luke would subsequently spend eight months in hospital, another year wheelchair-bound and had to teach himself to become left-handed. His career as a mechanic appeared to be over before it had started.

Fast forward ten years though, and Luke has picked up his apprenticeship once more after first being offered work experience with Michael Georgas and his team at Absolute Car Care.

In the 18 months since starting back in a workshop, the work has been tough and not without pain and Luke has had to go through another operation this year (the number of procedures he has had to endure since the accident now numbers nearly 40). However, Luke's resilience and desire to achieve his goal of becoming a mechanic has seen him gain the respect of everyone around him and he has been named as the MTA

Luke Roxburgh has shown plenty of grit and determination to excel in his apprenticeship after a terrible accident nearly claimed his life

“IT'S A STRUGGLE

EVERY DAY AND A LOT HARDER THAN I THOUGHT IT WOULD BE, BUT I LOVE IT . . .�

Institute of Technology's Student of the Month for June.

"I've learned a lot this year and it has been going well,' said Luke. "I've had another operation - on my foot this time. Because of my injuries, my toes were curling over and I was having to walk on the tips of them which was very painful. So I had them straightened out and things have been a lot better."

Luke's boss, Michael Georgas, is very pleased with his progress.

"He is a good kid," said Michael.

"He has a strong work ethic, is a great team player and he constantly asks questions - which is criticial when you're an apprentice.

"And though his disability restricts him in certain areas, he works around it and finds a way to overcome it, which is really impressive - he always gives 110 per cent."

For Luke, now 28-years-old, his injuries may make things tough, but with the supportive team around him, and with willpower that would put most of us to shame, nothing, it seems, will prevent him from reaching his goal.

"Sometimes I think I am not as good as I used to be before my accident and that I am letting people down," he said. "It's a struggle every day and a lot harder than I thought it would be, but I love it. There is nothing else I want to do and that's why I put myself through this."

July 2015 Motor Trader | 21

E S S E N T I A L S

INSPIRATIONAL LUKE CONTINUES AUTO QUEST Y

M E M B E R S

Training matters

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

Training matters

AHG TEAM COMPLETE NADA UNIVERSITY COURSE T HE NATIONAL AUTOMOBILE Dealers Association (NADA) University courses continue to be rolled out to the automotive industry across the nation, bringing the renowned NADA educational programs - and their focus on maximising customer retention and profits - to Australian dealerships.

The three-day Service Department Operations Management course was recently presented to a team of 15 Service Managers from AHG (Automotive Holdings Group), Australia’s largest automotive group, at the company’s Head Office training facility in Baulkham Hills, Sydney.

“It went very well and the team got a lot out of it,” said Paul Goldie, the NADA-accredited consultant who delivered the course. “We had Service Managers from Melbourne, Sydney, Brisbane and Newcastle on the course, representing both well-established dealerships and newly-opened shops.

So we had some Service Managers who were relatively new to the role along with some very experienced Service Managers - it was an excellent cross-section.”

The Service Department Operations Management course is designed to comprehensively analyse the workings of the Service Department, including evaluation of financial statements, sales, expense, forecasting and pay plans, and requires that participants bring along data and figures from their own business. That data, once it has been run through the course formulas, can offer some surprising results on where and how money can be saved, profits made and processes streamlined.

“On Day Three of the course we tackled Pay Plans,” said Mr Goldie.

“And that really got the group talking, sharing ideas and discussing the costs of labour, the costs of a service advisor, and how things can be simplified, particularly in regard to elements such

22 | Motor Trader July 2015

“USING THEIR BUSINESS’S OWN FIGURES OPENED THEIR EYES TO THE TRUE POTENTIAL OF THEIR ORGANISATION.” as commission-structure - that element of the course was a bit of a stand-out.”

And the course environment itself was a useful learning tool too, he added, as it brought together a team of people that may not have crossed paths often before, if at all.

“Being exposed to other people in the Group really helped,” he said.

“Interacting with other people in the industry, and especially in the area of the industry you work, is always useful and this course does facilitate that sort of interaction.”

Attending the three-day program as an observer was Leonard Hatcher, the Group Service Manager for AHG in NSW, and he was encouraged by the positive response to the course from his colleagues.

“It was intriguing for the less experienced members, while for the

more experienced members it was good as a refresher,” he said. “Using their business’s own figures opened their eyes to the true potential of their organisation, and the course gave them some innovative ideas and showed them some different approaches to things. I spoke to each of them after the course had finished and they all told me that they found it very useful.”

Mr Hatcher expects the course will prompt inventive thinking from his team.

“As I visit each dealership, we go over what they learned and some have come back with ideas already,” he said. “Each of them will find their own uses from what they learned on the course and I expect they will talk to their own state manager about those elements and the ideas that come from it.“ The Service Department Operations Management course and the Sales Operation Management I and Sales Operation Management II courses are now available through the AADA. Call 07 3237 8777, email courses@aada. asn.au or go to www.nadauniversity.com.au for more information.

EMPLOYER INFO TOUR

SEPTEMBER 9TH 5.30PM-7PM DO YOU WANT TO GROW YOUR BUSINESS? Do you want to make bigger profits, be more efficient, have your staff trained to the highest standards and be able to access industry and workplace advice by making a simple phone call?

Are you interested in finding out more about government funding and other options available to you that will help you to develop the skills of your employees and build your business?

WELL, WE CAN HELP! The MTAQ has been working in the automotive industry for more than 80 years servicing the needs of the automotive industry with advice, advocacy and training, and on our Employer Info Tour we can talk about all these issues and much more.

SO COME ALONG AND . . . » Tour our facility and meet our industry experts. » Talk to our experienced staff about funding options and programs available to assist you with expanding your business. » Discover more about our world-class industry training courses . . . from Light Vehicle Mechanical to Auto Electric, from Pre-Vocational courses to Business Diplomas we’ve got all your training needs covered. » Discover the benefits of being a member of MTAQ – an industry association with more than 80 years of experience in providing advice, advocacy and training to the industry. » Network with industry colleagues over a snag or two from the BBQ.

WE LOOK FORWARD TO SEEING YOU

20150240

SIR JACK BRABHAM AUTOMOTIVE CENTRE OF EXCELLENCE BUILDING 8, FREEWAY OFFICE PARK, 2728 LOGAN ROAD, EIGHT MILE PLAINS QUEENSLAND 4113 RSVP 2ND SEPTEMBER INFO@MTAQ.COM.AU

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

Member matters

MTAQ MEMBERS AMONGST HOLDEN’S ELITE DEALERS E VERY YEAR, HOLDEN recognises 32 of the best Dealerships across the country by naming them ‘Grand Masters’.

The Grand Masters title is awarded after measuring sales excellence, customer service, aftersales delivery, training and other quality measures across all areas of the business and is awarded to 32 dealerships across the company’s national retail network.

The winners of the award for 2014 were announced in May and a number of MTAQ members were recognised.

Ireland Holden in Cairns, Crossley Holden in Proserpine, Zupps Holden Aspley in Brisbane and Gatton Auto were all named amongst the elite 32.

“This year’s winners have delivered superior results in every facet of the business, an achievement for which they should be incredibly proud," said Holden’s Chairman, Jeff Rolfs, who presented the awards.

“This is not an award that is easily won. It is given to those select few that are committed to excellence and enhancing the experience of every customer who walks through their door.

“This award is a reflection of the hard work and dedication of the dealership’s entire team who are the face of the

Holden brand each and every day.”

With Dealers divided into groups based on volume, six of the 32 Dealers also earned Chairman’s Award status for their outstanding success.

For Richard Ireland, Dealer Principal at Ireland Holden, achieving Grand Master status was a reflection of the dedication of his staff, and was something of which they were all proud.

“Everyone was delighted,” said Mr Ireland, whose company has been serving the Cairns community for 92 years. “The team had been working really hard to get to this point and it took something of a cultural shift to get here – we went from worrying about making every sale count and keeping the customers happy, to

Richard Ireland, Dealer Principal for Ireland Holden in Cairns, receives the Grand Master 2014 Award from Holden Chairman John Rolfs.

making ever sale count and making the customers delighted.”

Ben Hancock, Dealer Principal for Crossley Holden in Proserpine, was equally as proud of his staff.

“It’s a credit to everyone in the team and was certainly very well-received throughout the business,” he said.

“It took a lot of focus and enthusiasm to reach this point and it’s a great thing to focus on because if you are getting this type of award then you know the business is doing very well.”

For Jason Gordon from Gatton Auto, the award was especially sweet as his Dealership was named not only as a Grand Master but also earned Chairman’s Award status in their dealership category.

“We were very pleased,” he said.

“We put in a lot of effort and it requires concentration and focus the whole year. From my point of view it gives dealers our size the chance to be recognised for our efforts as it is not simply sales-based but requires concentration in every department.”

For all of the Grand Master title recipients, the goal is now to stay at the level they have reached.

“That’s our biggest goal – to keep operating at this level,” said Mr Gordon. “Once you’ve won the Grand Final the hardest thing is to repeat, and that’s the way we are looking at it.”

“We know what we are doing,” added Mr Ireland. “Running a dealership is a process – you have to keep doing the right things every day - and we’ve been doing that for 92 years now.”

HOLDEN’S QUEENSLAND GRAND MASTER DEALERSHIPS FOR 2014 Zupps Holden Aspley, Aspley QLD Bartons Bayside Holden, Wynnum QLD Ireland Holden, Cairns QLD Lawrence's Holden, Rockhampton QLD Crossley Holden, Proserpine QLD Gatton Auto, Gatton QLD. 24 | Motor Trader July 2015

An artist's impression of the proposed Auto Mall

“WHILE AIRCRAFT

BAC CEO and Managing Director Julieanne Alroe

Motor racing legend Mark Skaife

would offer a range of experiences beyond test drives, with the track offering an environment safe for car launches, media drive comparisons, car club activities, driver training and road safety initiatives.

“The precinct has huge potential for a range of uses, including a 4WD test track earmarked for stage

WILL ALWAYS BE OUR FIRST LOVE, ADDING A PREMIER AUTOMOTIVE PRECINCT TO THE GROWING AIRPORT COMMUNITY WILL BE A WIN-WIN FOR THE CITY AND STATE.” two of the concept.”

Mr Skaife said the Auto Mall would reshape Brisbane’s automotive industry and add a destination for companies as they move from manufacturing to distribution.

“Having a range of dealerships and associated services at the one central precinct is just what Brisbane needs,” he said.

“Escalating land values and demand for inner city residential development sites, such as in Fortitude Valley, mean many dealerships are moving or looking to move in the coming years.”

“Nationally, many brands are ceasing manufacturing, turning the focus to marketing and the ‘retail experience’ which is a growing trend already being embraced successfully overseas.”

July 2015 Motor Trader | 25

E S S E N T I A L S

AR BUYERS IN the southeast of Queensland could, one day, be looking at heading out to Brisbane Airport in the search for the perfect car.

A massive ‘auto mall’ has been proposed by Brisbane Airport Corporation (BAC) to be built on a 50 hectare site just a stone’s throw from the airport’s terminals. The proposal aims to create an ‘all-encompassing automotive precinct with dealerships, servicing, offices and associated retail all in the one convenient location’.

The Auto Mall would also contain a 2.5km test track designed by motor racing legend Mark Skaife.

According to BAC CEO and Managing Director Julieanne Alroe, the site was ‘the perfect location because it offers the size and flexibility needed . . . with an extremely central location just 10km from the CBD.” “While aircraft will always be our first love, adding a premier automotive precinct to the growing airport community will be a win-win for the city and State,” Ms Alroe said.

“Having an automotive precinct at the airport frees up prime real estate in the inner city areas, providing further options for developers and residents and space for our cultural precincts to prosper,” she added.

Mr Skaife said the test track offered a unique element to the Auto Mall, meaning dealerships located there could offer demonstrations and test drives of vehicles away from the distractions of public roads.

“Having the ability to test drive a new vehicle along a track is such a unique concept and something I am really excited to be a part of,” he said.

“Being able to drive a car straight from the showroom onto a purposebuilt test track without having to wait at traffic lights and sit in congestion is fantastic – you don’t even have to be a car fanatic to appreciate that.”

“It’s a unique way for customers to try out a new vehicle and a great way for dealerships to really sell the features of their cars.”

Mr Skaife added that the Mall

M E M B E R S

MASSIVE AUTO MALL PROPOSED FOR BRISBANE C

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

Member profiles

Gold City Steering and Suspension

One Ten Motorcycles Location: Caboolture Type of business: Motorcycles Repairs and Sales Number of employees: 4 Trading since: 2005 MTAQ member since: 2008

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

What is the best thing about working in your industry?

I was previously a member of VACC.

Working with CT110 postie bikes and seeing what they can achieve and are capable of.

How has being an MTAQ member benefited your business?

Information available to members and regular updates of business information.

What has been your proudest business achievement to date?

Nominated for Queensland Business Achiever Awards.

Sunspares Parts Plus

26 | Motor Trader July 2015

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

Listen to customers and always try to give them what they want.

What would you say to someone thinking about joining MTAQ? Do it, as it is a necessity for running a business efficiently and effectively.

Type of business: Front End Specialist Number of employees: 7 Trading since: 1988 MTAQ member since: 2004

reputation as people still come in and see us on someone’s recommendation.

Heard about it from a fellow member.

What is the best thing about working in your industry?

How has being an MTAQ member benefited your business?

I think it gives us a good standing in the community as people recognise the name. I find membership particularly beneficial when I need to make enquires about employee wages and entitlements.

What has been your proudest business achievement to date?

Being in business almost 27 years and knowing that our business has a good

We love to solve the problems that no one else can. Customer satisfaction is always a good thing.

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

Do the right thing by your customers and they will keep coming back and recommend you to other people.

What would you say to someone thinking about joining MTAQ? Go for it!

One Ten Motorcycles

Sunspares Parts Plus Location: Yandina Type of business: Auto Dismantler Number of employees: 12 Trading since: 1986 MTAQ member since: 1990

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

What is the best thing about working in your industry?

Previous owners of business.

Diversity of the industry and how it is always evolving.

How has being an MTAQ member benefited your business?

• IR • Traineeships • Availability of business information • Availability of support services.

What has been your proudest business achievement to date?

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

Enjoy what you do or move on.

What would you say to someone thinking about joining MTAQ? Definitely worth it. Essential for running a successful business.

Doubling the size of the business over 10 years of owning the business.

July 2015 Motor Trader | 27

E S S E N T I A L S

Location: Gympie

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

M E M B E R S

Gold City Steering and Suspension

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

Industrial relations What are the rules governing sick leave and carer’s leave?

T TED KOWALSKI INDUSTRIAL RELATIONS MANAGER

HE NATIONAL EMPLOYMENT Standards (NES) contain provisions governing sick leave (now called personal leave) and carer’s leave. All permanent employees, including part-timers - but excluding casuals, accrue personal leave at the rate of 1/26th of the ordinary hours worked each week. For a 38 hour week that equates to 1.461 hours per week, which is a total of 10 days per year. Personal leave is cumulative – meaning that any accrual not accessed in a particular year carries over into the next year for the full period of employment. There is, however, no obligation to pay-out accrued personal leave on termination.

The NES allows an employee to access their personal leave accrual if a member of the employee’s immediate family or household is sick or injured or requires help during a family emergency. In such circumstances the leave is described as carer’s leave.

An immediate family member is defined as a;• Spouse • De facto partner • Child • Parent • Grandparent • Grandchild • Sibling, or • Child, parent, grandparent, grandchild or sibling of the employee’s spouse or de facto partner.

A household member is any person who lives with the employee.

An employer is entitled to require evidence if an employee accesses either personal leave or carer’s leave.

The employee is obliged to contact the employer within a reasonable time of normal commencement to

“AN EMPLOYER

IS ENTITLED TO REQUIRE EVIDENCE IF AN EMPLOYEE ACCESSES EITHER PERSONAL LEAVE OR CARER’S LEAVE.” advise of either their illness or that they are claiming carer’s leave. Each company can formulate its’ own policy regarding when a doctor’s certificate, or some other form of evidence will be required. That policy should be advised to all staff and applied consistently. Failure of an employee to produce the necessary evidence could mean that they would not be entitled to pay for the absence. A statutory declaration (sworn statement) from the employee could be accepted as long as it states why the employee was unable to obtain a doctor’s certificate and swears to the fact that either the employee or an immediate family member was sick.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

Automotive Xpress Servicing

Vernon Crawford

16 Civic Road, Garbutt Q 4814

info@autoxpress.com.au

AED

28 | Motor Trader July 2015

Investment matters

MARKET WRAP

V

OLATILITY HAS RETURNED to the market with quite a decent pullback following a strong run in the first quarter. The correction is circa 10 per cent, which is quite a substantial pullback and was led by a fall in bank shares.

We have noted in recent months the PE of the market has been high by historic levels and vulnerable to a pullback. Our core view has been that greater volatility will emerge but the lower interest rates will ultimately support the market. As a result we have tended to carry a little extra cash but have been looking to buy the dips.

This remains our core view and we have been finding some buying opportunities as the market has weakened.

The volatility in the market has been driven by some key factors: 1. Uncertainty regarding whether Greece stays within the Euro.

While a Grexit (phrase for ‘Greek Exit’ from the Euro) might create some uncertainty in the short term, we tend to think Europe is better placed to cope than it was a couple of years ago. This source of uncertainty can cause potential buyers to hesitate until there is a clearer resolution which adds to the weakness in the market.

2. Global inflation expectations are changing. Last December, the world was awash with concerns about the potential for deflation to emerge.

The policy response, particularly in Europe and Japan, appears to have put paid to this concern.

Furthermore, the US is seeing some initial signs of a pick-up in labour costs. In one sense, an increase in inflation is what the world has needed. It enables growth to eat into debt levels and encourages an increase in spending.

3. Concerns regarding the bank sector.

The rising bond rate environment is reducing the level of demand for high yielding assets. Additionally, bad debts are at such low levels they are no longer likely to provide a tailwind to earnings. While the Murray Inquiry has recommended the majors will need to raise circa $25b in capital.

From a market perspective, investors have been buying risk assets due to their attractive yield relative to the low bond yields. Any deterioration in bond yields can cause an increase in volatility.

The question is whether valuation appears attractive yet? The PE has pulled back to 15x which represents an average over the last 15 years. We think this appears reasonable especially considering we do not anticipate bond yields increasing rapidly. The higher inflation rate might cause bonds to tick up but there is enough excess capacity and low enough growth that we do not see the bond yields spiralling upwards and reducing the attractiveness of equities. Equities still appear attractive compared to bond yields and will remain so even if bond

yields were to move a further.

In particular, the sharp pullback in bank shares this month has opened up some value in the sector. We have participated in the capital raisings to enter at attractive valuations. While growth rates will remain subdued for the banks, the yields remain attractive and they will look to pass on the extra capital cost onto their customers by lifting mortgages rates.

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 2015 Motor Trader | 29

The hit list

TOP OF THE CLASS T HE MOTORCAR - designed to help us move ourselves, and our ‘stuff ’, over long distances quicker than a horse. Basically, that is what a car is, or was, anyway.

These days, of course, they are

engineering and technological wonders, much more than just a way to get from A to B. But there are some cars out there that a little more wondrous than most – a bit more flash, a bit more luxurious, a bit

quicker, a bit more exclusive.

So, here are a few more ‘Hypercars’ (there’s even a car on the list that the manufacturer calls a ‘Megacar’) that have made us stop, stare and drool.

ASTON MARTIN ONE-77 Engine: Aston Martin 7.3-litre V12 // Power: 750hp // 0-100km/h: 3.7 seconds // Top Speed: 350km/h // Price: $2million There’s little doubt that Aston Martin make beautiful cars and the One77 is the Helen of Troy amongst a gaggle of Aston stunners. While luxury abounds on the inside, the One77’s low, wide stance, with flanks lined with scoops and ducts is a perfect match for the beast of a V12 lurking beneath the bonnet. With a production run of just 77 vehicles, cars don’t come much more exclusive.

BUGATTI VEYRON SUPER SPORT Engine: 8-litre quad-turbocharged W16 // Power: 1200hp // 0-100km/h: 2.2 seconds // Top Speed: 431km/h // Price: $2.6million The fire-breathing dragon that is the Super Sport is officially the fastest production car in the world (though that is contested by the Henessey Venom). Only 30 of the Veyron Super Sport versions were made and only those with the deepest of pockets could afford one. Why? Because the numbers that surround this mighty car are as astonishing as its top speed. Need a new set of tyres? Reports say that’ll be $40,000 please. Wow!

KOENIGSEGG ONE:1 Engine: 5-litre twin turbo V8 // Power: 1340hp // 0-100km/h: 2.5 seconds // Top Speed: 430km/h (est.) // Price: $2million Sweden, a nation whose automotive history suggests safe and secure family motoring in the safe and secure hands of Volvo and Saab. That was until a small company named Koenigsegg came along in the 90s. Creating ever-quicker cars over the years, the company's latest tyre-shredder, the One:1, has a hp-to-kg weight ratio of 1:1 (hence the name) and this year set an acceleration/ braking record of 0-300-0km/h of just 17.95 seconds.

30 | Motor Trader July 2015

HONOURABLE MENTIONS

GUMPERT APOLLO S

LAMBORGHINI VENENO Engine: 6.5-litre V12 // Power: 740hp // 0-100km/h: 2.8 seconds // Top Speed: 355km/h // Price: $4million It’s sometime hard to know whether the designers at Lamborghini are mad, or geniuses, or just mad geniuses. The Italian manufacturer’s cars are always head-turners but some can twist your head clean off, and the Veneno fits into that category. Based on the Aventador and built to celebrate the company’s 50th anniversary, only four of the absurdly expensive Veneno’s were produced. Glorious to look at, fast, exclusive and oozing Italian flair, there’s no denying its hypercar status.

Engine: Audi 4.2-litre twin-turbo V8 // Power: 780hp // 0-100km/h: 2.9 seconds Top Speed: 360km/h // Price: $800,000

NOBLE M600

Engine: Yamaha 4.5-litre twin-turbo V8 // Power: 650hp // 0-100km/h: 3.5seconds // Top Speed: 360km/h // Price: $600,000

HENNESSEY VENOM GT Engine: GM LSX 7-litre twin-turbo V8 // Power: 1244hp // 0-100km/h: 2.7 seconds // Top Speed: 435km/h // Price: $1.3million The recipe is simple enough: Take one Lotus Exige; add a sprinkle of engineering genius, a dash of inspiration, stretch it and mold it and mix in a whopping 7-litre twin turbo V8. The result? A power-to-weight ratio of one hp per kilogram and a 435km/h top speed. Blisteringly quick, Hennessey has a planned successor to the GT, called the F5, that is scheduled to pack more than 1400hp and reach a top speed of 470km/h.

GTA SPANO

Engine: 8-litre twin-turbo V10 // Power: 925hp // 0-100km/h: 2.9 seconds // Top Speed: 370km/h // Price: $1million

MAZZANTI EVANTRA

Engine: 7-litre V8 // Power: 751hp 0-100km/h: 3 seconds // Top Speed: 360km/h Price: $1million

MERCEDES BENZ CLK GTR (1998) Engine: 6.9-litre V12 // Power: 600hp // 0-100km/h: 3.8 seconds // Top Speed: 320km/h // Price: $1.9million (in 1998) Possibly the ugliest hypercar ever made, the CLK GTR owes its existence to the homologation requirements demanded to race the car in the 1998 FIA GT Championship. 25 of these roadgoing versions were built and judging from reviews of the time, it was seen as basically the racecar with the sponsors' logos removed. It was cramped and noisy, and with every inch of space taken up with the technology to run the massive engine, it wasn’t exactly practical for the weekly run to Woolies. However, it did smash all challengers in the 1998 FIA GT season, winning all 10 races, and it’s hard to put a price on owning the very best thing on four wheels.

NISSAN R390 GT1 (1998)

Engine: 3.5-litre twin turbo V8 // Power: 345hp 0-100km/h: 3.2 seconds // Top Speed: 354km/h // Price: $1million (in 1998)

July 2015 Motor Trader | 31

Industry insight

FIVE MYTHS ABOUT BUSINESS GROWTH 1. Bigger is better!

When people think about business growth, they often focus on sales.

If you look at industry benchmarks though, you’ll find businesses in higher sales brackets aren’t always the most profitable. We see businesses with modest turnover that achieve good profits. As soon as a business grows, overheads can get out of hand and the extra sales get eaten up and profit is worse than before. The question is what do you want to grow and why? Sales growth without corresponding increase in profit is a waste of time and causes headaches for business owners.

There is an old saying Sales are vanity, Profit is sanity and Cash is king!

Solution: To achieve growth in profit and sales, you need a plan. A budget is a great way to do this.

• Set sales targets with marketing and sales plans to support them.

• Set cost targets – you may be able to get better pricing when purchasing volumes increase and achieve better gross profit.

• Set overhead targets – consider extra resources required to deliver increased sales and have operations plans to support growth.

• Report on Profit and Loss monthly with a comparison to budget, so that you can quickly see if things are off track and fix them immediately.

2. Growth will solve cash flow problems This is probably the biggest and most dangerous myth of all! Why? When you make a sale you need cash to fund that sale i.e. you need to pay for • Goods or work on projects • Overheads to run business • Credit for customers paying on terms • Stock waiting to be sold If you need cash to fund sales, it follows that the more sales you make the more cash you’ll need. Growth 32 | Motor Trader July 2015

without considering this fact brings many businesses undone. They go ahead and agree to big contracts or sales without considering funding to achieve growth.

Solution: • Prepare a detailed cash flow projection including extra sales and corresponding cash flow requirements.

• Consider how you’ll fund extra cash required.

- Speed up collections from customers on terms.

- Ask customers for deposits - Seek longer credit terms from suppliers or time payments to suppliers to be after receipts from customers.

- Borrow from a lender e.g. Bank - Equity – sell shares to provide extra capital 3. Staff will love it!

Growth creates great opportunities for staff to progress. If resources aren’t properly considered though, and plans put in place to handle growth, it can cause more headaches for the business owner by creating unhappy staff.

Solution: • Plan for growth and factor in what resources will be required.

• Communicate with staff and involve them in growth plans. This is a great way to get ‘buy in’ and get them excited about plans.

• Set targets (KPIs) with staff to ensure you aren’t taking on extra resources without achieving targets and profit.

• Provide incentives. Money isn’t the only incentive – recognition can be a good motivator.

4. Build it and they will come!

We see it often – massive fit-outs of business premises, fortunes spent on new equipment etc. Business owners get excited about creating a fantastic product or service, but forget to tell the market! Sales don’t grow quickly

enough to fund the extra costs outlaid and cash flow squeeze becomes an issue. Marketing is often not the strong point of owners and they don’t have the funds to employ a marketing person.

Solution: • Budget for sales required to cover costs of fit-outs, extra equipment etc. Work out a ‘break-even’ point and make this your targeted sales to cover costs.

• Have a marketing plan and let your market know of your new product.

• Employ outsourced marketing help if you can’t afford to employ someone.

Marketing is not a ‘cost’ it is an investment in building your brand.

5. I can cope!

Business owners often fall into ‘The Founder Trap’ (a term coined by author of the E Myth Michael Gerber).

It’s when a business owner thinks they are the only person that can do things.

The problem with this attitude is that other aspects of your life suffer e.g. your health, your home life etc. When you start off in business it’s obvious that you have to be ‘Jack/Jill of all trades’ and do anything. When you decide to grow though, you need to become a business manager and not just a ‘doer’.

Solution: • Build a picture of what your business will look like when it has grown.

• Prepare an ‘Organisational Chart’ setting out all the tasks that need to be performed and who will do them.

• Write up job descriptions for the people who will be involved.

• Consider what systems will be needed to create efficiencies.

• Gain skills or outside help in HR management. Employing people doesn’t make your life easier – it’s a whole new skill you need to master.

CFO On-Call works with business owners to achieve successful growth. Why not take advantage of a ‘Growth Planning Session’ today. For details visit www.CFOonCall.com.au

News

FORD TO RETURN TO LE MANS IN 2016 F ORD HAS ANNOUNCED it is returning to perhaps the most prestigious automobile race in the world with its new Ford GT race car, based on the all-new ultrahigh-performance supercar that goes on sale next year.

The Ford GT race car will compete in the 24 Hours of Le Mans starting next year and compete in the Le Mans GT Endurance class for Ford GT race car professional teams and drivers (LM GTE Pro).

The new race car is based on the all-new Ford GT supercar unveiled AS WE DEVELOPED in January. Both the production car THE FORD GT, FROM and race car will arrive in 2016 to mark the 50th anniversary of Ford GT THE OUTSET WE race cars placing 1-2-3 at the 1966 24 WANTED TO ENSURE Hours of Le Mans. Ford went on to WE HAD A CAR THAT repeat its victory at Le Mans in 1967, HAS WHAT IT TAKES TO 1968 and 1969.

“When the GT40 competed at RETURN FORD TO THE Le Mans in the 1960s, Henry Ford WORLD OF GT RACING. II sought to prove Ford could beat endurance racing’s most legendary manufacturers,” said Bill Ford, spirit that drove the innovation behind executive chairman, Ford Motor the first Ford GT still drives us today.”

Company. “We are still extremely The new Ford GT race car will run proud of having won this iconic race the full 2016 schedules of the FIA World Endurance Championship four times in a row, and that same

“

”

and TUDOR United SportsCar Championship, making its competition debut in January 2016 in the Rolex 24 at Daytona, Florida.

The Ford GT race car features a number of innovations Ford believes will not only make it competitive in LM GTE Pro, but ultimately position it to provide benefits to each vehicle in the Ford line-up. These include state-of-the-art, advanced lightweight composites featuring carbon fibre for an exceptionally rigid but light chassis, and the power and efficiency of EcoBoost technology – the car will be powered by a 3.5-litre EcoBoost V6, the most powerful EcoBoost production engine ever.

“As we developed the Ford GT, from the outset we wanted to ensure we had a car that has what it takes to return Ford to the world of GT racing,” said Raj Nair, Ford Motor Company group vice president, Global Product Development and chief technical officer. “We believe the Ford GT’s advances in aerodynamics, light-weighting and EcoBoost power will make for a compelling race car that can once again compete on a global stage.”

July 2015 Motor Trader | 33

d e nd 015 e t 2 ex er e b in cto l d ea 31 O D to

WINNER 2015 FUND OF THE YEAR ~ MEDIUM

Do you have more than

20 employees?

Will you be SuperStream ready?

Did you know that the Government’s SuperStream reforms mean you might need to change the way you are paying employees’ super by 31 October, 2015? Under SuperStream, employers must make superannuation contributions on behalf of their employees by submitting data and payments electronically in a consistent and simplified manner.

An easy solution MTAA Super can help your business save time and money with it’s Quicksuper one-transaction clearing house.* KEY BENEFITS • Make all your super contributions with ONE transaction • 24x7 web-based access • Free for default or registered employers* • Upload payment information directly from your payroll system or input manually • Online validation of payments to ensure accuracy • Add new employees without additional paperwork • Secure online facility TAKE THE NEXT STEP Go to the MTAA Super website mtaasuper.com.au/get-superstream-ready to find out how we can help you be SuperStream compliant by 31 October. Alternatively, please contact our Customer Service Centre directly on 1300 362 415.

*The MTAA Super Clearing House is accessible free of charge to default or registered employers of MTAA Super subject to application criteria.

Other employers may be granted use of the service at the approval of the Trustee.

mtaasuper.com.au The MTAA Super Clearing House is a non-cash payment facility issued by Westpac Banking Corporation. MTAA Super does not issue or operate the MTAA Super Clearing House. It offers a high level of security, stability and privacy and is subject to regulation as a financial product. You should consider the terms and conditions in the Product Disclosure Statement in deciding whether to use the MTAA Super Clearing House, which is available from https://clearinghouse.mtaasuper.com.au/ApplicationIntroductionView. This document is issued by Motor Trades Association of Australia Superannuation Fund Pty Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Pty Ltd. The information provided is of a general nature and does not take into account your specific needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415. You should consider the PDS in making a decision.