Motor Trader March 2016

MAR 2016

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

MEMBERS CLASSIC 1968 MUSTANG NOTCHBACK

The benchmark of industry standards.

GIVE YOUR DEALERSHIP THE TOOLS TO

STAND OUT

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.NADAUNIVERSITY.COM.AU

Contents Official Publication of the Motor Trades Association of Queensland

Follow us on Facebook www.facebook.com/MTAQueensland

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

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

For more information telephone the Editor 07 3237 8777 SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually

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

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

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

MTA QUEENSLAND ABN: 74 028 933 848

02 From the editor

CORPORATE PARTNERS

04 Policy/Viewpoint 06 GM's Professional Circle perspective

20160343

08 MTA Q&A

THREE POINT CLASSICS: JIM JONES

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

Feature 10 A MATTER OF CHOICE?: BATTLELINES DRAWN OVER PARALLEL IMPORTS

30 The hit list CONCEPT CARS OF THE PAST DECADE

16 Members Classic A MODEL AMERICAN: 1968 MUSTANG NOTCHBACK

33 Industry insight

11 STEPS TO ‘BUSINESS NUMBERS MADE EASY’ March 2016 Motor Trader | 1

From the editor

H

JONATHAN NASH EDITOR

2 | Motor Trader March 2016

ELLO AND WELCOME to the March 2016 edition of Motor Trader.

In our main feature this month we take a look at the federal government's announcement that it will reform the Motor Vehicles Standards Act, allowing Australian consumers to import new or near-new cars into the country from 2018.

The changes will allow for a consumer to import a new motorcycle or right-hand drive car from another country with comparable standards to Australia's – which for the moment means the UK and Japan. The vehicles must be no more than 12 months old and have traveled no more than 500kms. And a consumer can only do this once every two years. Along with other changes to rules around exotic, classic and special purpose vehicles, the $12,000 duty on imported used vehicles will also be abolished.

The government announcement has reignited a debate that has been rumbling along for some time. And the debate will, no doubt, continue as 2018 nears.

In our MTA Q&A feature this month we talk to Jim Jones from Three Point Classics. The service and repair business has grown from a small workshop specialising in the repair of Mercedes to a business with four locations across the south-east.

The company is also a sales agent for Morgan, the distinctive British car marque, as well as the Australia and New Zealand distributor for quality US product, Arnott Air Suspension.

In our Member's Classic feature we catch up with Jeff and Sarah Thomasen from JR Automotive in Cairns to talk about their stunning 1968 Ford Mustang, and we also have an enlightening interview with Tom Klinge, co-founder and director of Klinge & Co. Long established as one of the world’s leaders in tyre management systems and services, Klinge & Co.’s customers include global mining, construction and transport companies such as BHP Billiton, Rio Tinto and Fortescue and there are more than 200 Klinge & Co. employees servicing those customers across the globe.

Tom started his career in the industry as a tyre fitter in the small Queensland country town of St George more than 40 years ago, and his passionate support for the industry, his development of new technologies, and work in the training and safety aspects of the business saw him honoured last year by the international Tire Industry Association (TIA) who presented him with the prestigious Ed Wagner Leadership Award in recognition of the positive influence and impact he has had on the industry.

You can read more about Tom and Klinge & Co., starting on page 24.

In Professional Circle training news, we talk to a number of outstanding MTA Institute apprentices, including Andrew Kisbalazs, a 21-year-old motorcycle mechanic from the Gold Coast, who has won the 2015 Ulysses Club Motorcycle Apprentice of the Year Award for the Queensland/Northern Territory zone and may, by the time you read this, have picked up the Club's national award, the winner of which is to be announced at the Club's national rally in Launceston on March 6.

In our Hit List this month we take a look at some of the fantastic concept cars that have been developed over the past few years. There are some real stunners in the list including the Peugeot Onyx, a sensational copper and carbon fibre creation, and the absolutely bonkers-looking Lamborghini Egoista. Check them out on pages 30-31.

As always, we will endeavour to bring you news and insight into the industry, information on the latest training opportunities, and highlight members’ interest. If you have a story worth telling, want to appear in Member Profiles, or have a classic car, bike or truck you would like to see featured, then please contact me.

Cheers, Jonathan Nash jonathann@mtaq.com.au

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Policy/Viewpoint

KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

T

HE MTA QUEENSLAND corporate office is abuzz with activity for Members. Much of this derives from the Professional Circle program, launched at last year’s annual President’s Ball.

Since the beginning of February, our divisional executives Ian Cole, Colin Fitzpatrick and Andy O’Hearne have been visiting Members and delivering special Professional Circle material.

To endorse the Professional Circle message and symbol, the package comprises four promotional elements: an A3 MTAQ Member sticker poster; an A3 Certified 10/10 Professional sticker poster; an A4 Certified 10/10 Professional certificate, and an A4 10/10 commitments to the Professional Circle certificate.

The purpose of this material is to indicate to the public that you and your business represent the benchmark of industry standards.

It provides a clear distinction between MTA Queensland Members who are ‘inside’ the circle and ‘non-members’ who are outside the circle.

To the public, the Professional Circle will be a symbol of trust, a sign that will assure them that should they choose to deal with an MTAQ member business, they will be assured of the highest standards of service and professionalism.

Over the next few weeks, every member will receive the package of material and I urge you to display the material prominently so that 4 | Motor Trader March 2016

consumers can see and identify the Professional Circle message.

In February’s Viewpoint, I said that we had recruited Luke Thompson to the new position of online digital coordinator. Luke’s role is to promote the MTA Queensland and engage more fully with members, industry and the public in the social media space through Facebook, LinkedIn, Twitter and Youtube. Our more energetic presence in these channels has seen us gaining plenty of momentum as engagement and interaction grows.

BENCHMARK SURVEY I wrote in February’s Viewpoint that I would report on some of the key findings of the Benchmark Survey. The analysis is taking longer than expected so this will have to be deferred to April’s Viewpoint.

Overall, there was a strong response and it was pleasing to see lapsed and non-members taking the time to respond. Whilst there was participation from Members of each of the motor trades which form MTAQ, it was the Automotive Engineers Division (AED) and the National Auto Collision Alliance (NACA) which led the response field. This is logical as the AED, in terms of membership, is the largest division within the Association.

Generally, I noted with interest that women had responsible roles in their businesses, giving the view that the motor trades were appealing to women. Responses came from all age groups, from those under 25 years old to those over 55. However, it was the mid to later year age groups that predominated. That Members are utilising the services of our Corporate Partners was a pleasing result.

Thank you to all who participated in the survey. Your responses are most encouraging and will help us to better define the issues and provide services relevant to you.

DEREGISTRATION OF OUR STATE REGISTRATION This is a very important issue for Members to understand and finally to

cast a vote. No, we are not going rogue!

For some Members this will be a wistful undertaking as the Association’s original State registration dates back to 1949. But time marches on and circumstances demand the change.

Simply, what it means is that the workplace relations laws covering the motor trades now are under the Commonwealth Fair Work Act 2009. As an Industrial Organisation of Employers we are required to be registered in that jurisdiction. This occurred on November 26, 2014.

It is not necessary to be registered under the Queensland Industrial Relations Act 1999 as none of the Member issues we deal with, or represent on behalf of Members, require State registration. The reason for deregistration is that maintaining and complying with two sets of rules/ provisions that are not identical is cumbersome and time consuming.

In fact, it is a red tape nightmare.

Section 638 of the State Industrial Relations Act 1999 provides the mechanism to seek deregistration of a State registered organisation.

Its main requirement is that a majority of an organisation’s Members must agree to deregistration. In other words, it is not a corporate office matter that can be signed off with the stroke of a pen. It is a special decision, a duty and responsibility of Members, and it must receive 50.1 per cent agreement to occur.

The critical point is that you, the Member, must agree and do so by voting. We will be requesting your input on this in the near future to determine your view.

I urge you to vote on this important matter in the best interest of our Association. Thank you.

CUSTOMER SERVICE RELATIONS This year, the intention is to be in the field meeting with Members.

The first of the field visits is to Cairns on Monday, March 14, for an evening General Meeting. The following morning, we will be at Atherton for a AADA breakfast meeting. In the evening of Tuesday, March 15, we will

be at Townsville for a General Meeting.

Travelling with me will be the Northern and Central Queensland Divisional Executive Andy O’Hearn and significantly, representatives from our Corporate Partners who will be promoting their services and products and ways they can assist your business.

This is a new innovation and I encourage Members to attend and engage with our esteemed Corporate Partners: MTAA Super, Australian All Energy Solutions, Capricorn, Our Auto Tech-Centre, Our Auto Digital, Guard Insurance Brokers and Commonwealth Bank.

ADVOCACY Advocacy is continuing at a methodical pace. I completed the submission to the Australian Government’s Discussion Paper on ‘Options to strengthen the misuse of market power’ and Members may peruse it on the website. Coming up is the submission to the Commonwealth Department of Transport and Regional Development’s discussion paper on Vehicle Emissions. There is time to research the issues as it is due on April 8. If Members would like input or to consider the discussion paper, it may be accessed at https://infrastructure. gov.au/roads/environment/forum/ index.aspx The Queensland Government’s Biofuels policy was an advocacy issue that we pursued on behalf of Members.

The Parliament agreed to Liquid Fuel Supply (Ethanol and other Biofuels Mandate) legislation in December 2015.

For Members, there are three critical issues. The first is that the biofuels mandate will be introduced in Queensland from January 1, 2017.

This means the Queensland fuel industry will have a legal requirement to sell a minimum amount of biofuels.

The second is that the mandate requires that 3 per cent of total regular unleaded petrol sales and ethanolblended fuel sales must be ethanol.

The mandate relates to the volume of petrol sales. The third issue is that Queensland fuel sellers will need to register their business and provide an initial report on fuel sales in the first half of 2016.

Under the legislation, some Queensland fuel sellers may not have to meet the mandated levels of biofuel sales. Liability will be subject to

certain thresholds and an exemption framework. The State Government is in the process of providing further information for fuel sellers in early 2016 regarding the thresholds and exemptions. It was not available at the time of writing this Viewpoint.

ATO ISSUES The ATO has advised that the new fringe benefits tax year starts on April 1, 2016. Changes that will come into effect from that date include car expense fringe benefits and meal entertainment benefits. For details of these, Members should access www. ato.gov.au/newsroom/smallbusiness for more information.

As general advice, and not related to Members’ businesses, the ATO will acquire details of individuals in receipt of family tax benefit part B, paid parental leave, carer allowance and medicare entitlement statement from the Department of Human Service (Centerlink and Medicare) for the 201415, 2015-16 and 2016-17 financial years.

INDUSTRY NEWS The Australian Parliament has passed legislation that provides the Australian Competition and Consumer Commission (ACCC) with the power to pursue companies - e.g. airline and taxis - that imposes consumers with excessive surcharges above the cost of processing credit card payments. The downside is that it will not come into effect for some time as the Reserve Bank has yet to finalise the required regulation.

The ACCC has released its ‘Small Business in Focus Report for JulyDecember 2015’. One of the standout facts is that small business in that period lost $2,284,798 from scam activities. As part of the Government’s Stay Smart Online Week in October, the ACCC warned small businesses to be aware of cyber criminals attempting to take advantage of the fact that many businesses store sensitive information online. Information on protecting your business is available on the ScamWatch website.

The ACCC has advised that this year it will be returning to efforts to ensure representations made by big business about express or extended warranties are accurate. This has re-emerged as a priority reflecting the important

foundation consumer guarantees play in consumer protection.

The ACCC Chairman Rod Sims said large companies should avoid misleading consumers into paying for extra protections they already have under the law. ‘Blunt misstatements of consumer rights (e.g. no refund statements) and blanket refusals to consider warranty claims after the expiry of a manufacturer’s warranty without considering the application of the consumer law will attract’ the ACCC’s attention.

Chairman Sims said that following the Fiat Chrysler Australia (Jeep) investigation, the ACCC was ‘calling on manufacturers and new car retailers to invest in aftersales care.’ He stressed that consumer guarantees provide that vehicles will be fit for purpose, free from defects and as durable as a reasonable consumer would expect.

‘If a vehicle fails these guarantees, a consumer will have rights against the supplier and in some cases the manufacturer, who will have to provide a remedy.’ The ACCC shortly will be concluding the important investigation into emission issues involving Volkswagen.

THE ECONOMY The Reserve Bank Board, at its first meeting of the year, decided to leave the cash rate unchanged at 2.0 per cent.

Its final comments left the door ajar for easier monetary policy based on the assessment of several economic factors and continued low inflation ‘should it be appropriate to lend further support to demand’. Time will tell.

The recent NAB Business Survey suggests ‘some easing in conditions and (less so) confidence recently, but is not (yet) showing a negative impact on the non-mining sectors from recent financial market volatility and falling equity markets’. There is the risk, however, that if financial market volatility persists, resulting in adverse impacts on Australian business, the recovery in the non-mining sector may be affected. Analysis of the Business survey data indicated that overall it was a ‘relatively good result’ with ‘things broadly on track for the non-mining sector.’

On the other hand, the WestpacMelbourne Institute Leading Index which indicates the likely pace of March 2016 Motor Trader | 5

Policy/Viewpoint economic activity three to nine months into the future, provides some cautionary intelligence. The Index has been ‘growing below trend for the last nine months. It continues to signal that growth in the Australian economy in the first half of 2016 will be below trend.’ Significantly, the survey results represented ‘the largest negative deviation since the second half of 2011.’

The ABS recently released the seasonally adjusted Wage Price Index for the December quarter indicating a rise of 0.5 per cent in the December quarter and 2.2 per over the last year.

According to the ABS, wage growth through the year is now the lowest on record since the series commenced in the September quarter 1998. Over the last year, private sector wages grew at a slower pace than the public sector, 2.0 per cent compared to 2.6 per cent.

On another matter and in brief, I noted an interesting address by the Reserve Bank’s Head of Payments Policy Department on the future of the

cheque. Research demonstrates the steady growth of electronic payments and the decline in the use of cheques.

The number of cheques written in Australia has declined from around fifty (50) per capita per year in the mid1990s to about six (6) per capita in 2015.

NEW MOTOR VEHICLE SALES There was a mini-boom in January’s new motor vehicle sales, seasonally adjusted, for Queensland.

The Australian Bureau of Statistics (ABS) showed that 20,005 new motor vehicles sales across Queensland for the month - an increase of 789 units or +4.1 per cent compared with December 2015 sales. This was the highest sales increase of any Australian jurisdiction. Nationally, there was a rise of +0.5 per cent. Compared with January 2014, the buoyancy continued with an increase of 1,051 new motor vehicle sales or +5.5 per cent.

The respected VFacts data for January 2016 indicated new motor

vehicle sales of 17,193 units, an increase of 623 units or +3.8 per cent compared with January 2015 sales.

Nationally, there were strong sales recorded too, with a total of 84,473 sales, a rise of +2.7 per cent compared with the same month last year.

Dominating the market was sales of SUVs and light commercial vehicles.

Combined, the segments accounted for more than 56 per cent of the total new car market in January 2016. Business buyers showed confidence in January, with sales to business buyers up 14.4 per cent compared to January 2015.

FINALLY In closing, I urge Members to prominently display the Professional Circle promotional material package once you have received it.

In addition, please give due consideration to deregistration of our State registration.

Until the April Viewpoint, take care and stay safe.

GM's Professional Circle perspective

T

HE WAY THE MTAQ communicates with members, the public and the industry has gone through a minor revolution in the past few weeks as we continue to develop our focus on using social media to further the Professional Circle message of quality and professionalism.

The MTAQ's social media channels - Facebook, Twitter and LinkedIn have been refreshed, and now receive regular updates on the Association's work; the latest industry news, both local and international; interesting features and stories on apprentices and the training work of MTA Institute, and much more.

These social media channels give us the opportunity to instantly share important, and 6 | Motor Trader March 2016

entertaining, matters with you and showcase all the great work being done across the state.

We hope that many of you will have visited these sites already, and there certainly has been a terrific response so far, with the new content and commentary sparking plenty of engagement, and the number of 'likes' and 'followers' of the Association growing daily.

Social media is a very important communication tool and together with our new website, which is due to come 'online'

in a matter of weeks, offers exciting opportunities and possibilities for all of us. If you haven't checked in with us on Facebook, LinkedIn and Twitter yet, then we'd love for you to get online and join the conversation! Check us out at: • www.facebook.com/MTAQueensland • twitter.com/mtaqueensland • www.linkedin.com/company/motor-tradesassociation-of-queensland

News

‘AUSTRALIA’S BEST CARS’ OF 2015 REVEALED T HE MAZDA CX-3 MAXX AWD has been voted as the country’s stand-out car at the 2015 Australia's Best Cars ceremony.

The CX-3 received the Judge’s Choice award and was also recognised as the nation’s Best 2WD SUV under $35,000.

Australia’s Best Cars is run by the Australian Automobile Association (AAA) on behalf of the nation's motoring clubs - the NRMA, RACQ, RACV, RAA, RAC, RACT and AANT. Judges evaluate vehicles across a range of categories. It is designed to assist new car buyers with their choices and to set the standard for new vehicles on the market.

“The popular CX-3, which starts from $19,990 (plus on roads) in entry level form, is the sort of vehicle of which Australians just couldn’t get enough,” said NRMA’s chief road tester Jaedene Hudson.

“Compact cars that have the elevated stance of an SUV are the

Mazda CX-3 MAXX

emerging popular type and the CX-3 sets the standard.”

Available in four grades, including the Neo, Maxx, sTouring and the rangetopping Akari, the Mazda CX-3 has petrol and diesel options and comes in FWD and AWD ensuring there is something to suit every buyer type.

“The First-Ever Mazda CX-3 certainly hits a sweet spot with customers,” Mazda Australia managing

director Martin Benders said.

“We recognised that there were a few holes in the small SUV market and the Mazda CX-3, with its comprehensive range, dynamic driving performance and stunning looks, fills these.

“Millions of Australians are aligned to car clubs as they are regarded as experts in their field; to receive the recognition that comes with winning these awards is significant. We are delighted to accept these awards.”

Noticeably absent from the 2015 winners list were Audi, Volkswagen and Skoda models which were excluded from the awards in light of last year's VW emissions scandal.

2015 AUSTRALIA'S BEST CARS WINNERS WINNER

Judges' Choice Best Micro Car

Mazda CX-3 MAXX Mitsubishi Mirage ES

Best Light Car Best Small Car under $35,000 Best Small Car over $35,000 Best Medium Car under $50,000 Best Medium Car over $50,000 Best Large Car under $70,000 Best Family Wagon Best Sports Car under $50,000 Best Sports Car $50,000 - $100,000 Best Small 2WD SUV under $35,000 Best AWD SUV under $50,000 Best AWD SUV $50,000 - $65,000 Best AWD SUV $65,000 - $125,000 Best 4x4 Dual Cab Ute

Hyundai Accent Active Hyundai i30 Active BMW 118i Sport Line Kia Optima GT Mercedes-Benz C 200 Hyundai Genesis Kia Sorento SLI 2WD Ford Focus ST Mercedes-Benz A 45 AMG Mazda CX-3 MAXX Subaru Outback 2.5i Premium Kia Sorento Platinum Volvo XC90 Inscription D5 Toyota Hilux SR5

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CATEGORY

March 2016 Motor Trader | 7

MTA

QA &

What products and services does Three Point Classic provide?

JJ: We are a service and repair business, mainly of European vehicles. We also sell a range of tyres, parts to the trade, and we do mechanical restoration work for luxury vehicles such as Mercedes Benz. We repair electronics and also do our own transmission work.

We manufacture parts too. We make our own components using lathes, and use 3D printing to manufacture pieces for older cars, such as clips, that you can’t buy anymore. We also bring parts in from overseas but do try to source them from Australia first. We want to help Australian business and, perhaps, get reciprocal business in return.

We are also the Australia and New Zealand distributor for a product called Arnott Air Suspension. Most high-end European vehicles have air suspension and it is also common on American cars. When Ford and Holden finish manufacturing here there will be an influx of American vehicles, and when these models arrive we will have the components to repair the suspension on them. We received our first shipment in December and this will be a very large part of our business.

What is the background to the business?

Jim Jones, General Manager of Three Point Classics

JJ: The business was originally called Three Point Services and Sales. At the time it was a Mercedes Benz serviceonly franchise. It was based at these purpose-built premises in Mount Gravatt and was a reasonably small workshop. In 2004, I came along and, after a while, we decided to expand.

We set up in Newstead and then bought a place on the Gold Coast and then another at Sumner Park. We also took over what was a Goodyear Tyre Centre at the front of this existing business.

We started that expansion in 2008,

The Three Point Classics automotive business in Brisbane has, in the space of a decade, gone from a small, one-workshop Mercedes repair specialist to a company with four locations across the south east. It has also become a sales agent for Morgan - the distinctive UK car marque – and the Australia and New Zealand distributor for quality US product, Arnott Air Suspension.

We catch up with Jim Jones, general manager and partner in the company. which just happened to be right when the Global Financial Crisis hit. We toughed that out and realised that if we could survive the crook times we could certainly survive now. So, today we have four locations, over 35 staff and we do look out for possible acquisitions and strategically-placed businesses.

What’s your background in the industry?

JJ: I am a tradesman and started in the 1970s with a Mercedes Benz dealer in country NSW. I went to Newcastle for a couple of years working for a company called Bradstreet Group which had multiple franchises, mostly Toyota.

I then went to New Guinea for several years working for Toyota Tsusho - the Toyota distributor in the pacific.

Where does the name Three Point Classic come from and why specialise in European cars?

JJ: People think that because the original business was called Three Point Services and Sales, the ‘three point’ must originate with the Mercedes star. Actually, the name comes from the business being located at the meeting of three roads.

However, the connection to Mercedes is pretty fortuitous!

We are a niche business, and I think you need to specialise to survive.

And there is certainly a market for us.

While the sale of European vehicles exploded, the service network and the trained personnel needed to fix them are few and far between. We do also work on other model vehicles, however.

Our customers have children and relatives who come to us with their cars and we could work on something like a Fiat, a Smart car, a Holden or a Ford.

How many staff do you have?

JJ: We have 38 staff - mainly mechanics and apprentices. It is very difficult to find the right tradespeople so our

apprentices are very important. In fact, a couple of our former apprentices are now managers.

I think our staff understand this is a good place to work.We are not hung up on productivity and efficiency – what’s important is that the work is done right. That’s the big secret. We don’t rush people. Do it right and do it once.

What do you look for in an apprentice?

JJ: Attitude and passion. I say to the young kids who come in that if they’re not tinkering around on their bikes or mowers then this is probably not the job for them. We fix things here, we don’t just replace parts, so there is a lot of logic and fault-finding involved.

They don’t have to be world-beaters as far as education is concerned, but they have to have a will to succeed.

You are involved with the Morgan Motor Company. Can you explain that?

JJ: We are service agents for Morgan, and a sales agent for the Morgan three-wheeler. The Morgan threewheeler is a niche product and not really represented in Queensland but the state is the obvious choice for something that doesn’t have a roof on it! And we love the product. They are hand-built and something that will appreciate in value.

The car is built to order and, as sales agents, we take orders for them while all the paperwork is done through the importer in Melbourne. There is about a six month wait but the customer does have the opportunity to visit the factory to watch their car being built.

Arnott Air Suspension

You are also involved in restoration work?

JJ: Yes, predominantly for Mercedes Benz. To be honest, it is not a big money-maker and is more of a passion for us. Restoring a car can be very timeconsuming and much harder than just repairing a car. The industry is losing the people who are skilled enough to do it, and that is part of what we are trying to hang on to here.

You restore classic motors and also repair modern vehicles with almost sciencefiction levels of electronics. Is it easy to move between the different technologies?

JJ: Whenever a new model comes out people say ‘this is so complicated’.

The thing is, they can’t make anything that can’t be fixed! No matter what it is, someone had to work out how someone else can diagnose it and fix it. We look forward to new models and working out ways to repair them.

What are your plans for the future?

JJ: There are two things: a plan for the staff and one for the business.

We are sending our managers to complete a Bachelor of Applied Management degree. I’ve done it myself and think it's great to learn about marketing, corporate social responsibility, and HR issues. I think our staff are better for it and the business is better for it too because they are always thinking about ways we can do things better.

As far as the business is concerned we are moving forward with the Morgan and with the Arnott Air Suspension project which will be important parts of the business.

What do you do with you spare time?

JJ: Since finishing my degree I do have a bit of spare time and I spend it with my grandchildren, or restoring motorcycles.

I have even taken up the piano!

March 2016 Motor Trader | 9

With the federal government announcing plans to reform the Motor Vehicles Standards Act, the battlelines are once again being drawn over parallel and ‘grey’ imports

I

N MAY OF 2013, Ford announced its intention that, by the end of 2016, it would cease the manufacturing of cars in Australia.

The news was not totally unexpected but still came as something of a shock and its departure from the vehicle production landscape precipitated a domino effect. By the end of the year, Holden, swiftly followed by Toyota, had announced that they too would end production in this country.

As these announcements were being made, the Productivity Commission was holding a review into the automotive industry. Notable in its report, released in August 2014, was its view that the Australian Government should ‘progressively relax the restrictions on the importation of second-hand passenger and light commercial vehicles’. These restrictions would include the removal from the customs tariff of the $12,000 duty on imported second-hand vehicles, and recognise appropriate vehicle standards of other nations.

In light of what was about to happen to the Australian manufacturers, it seemed a pretty reasonable report – 10 | Motor Trader March 2016

“THESE NEW ARRANGEMENTS

HOWEVER WILL OFFER CONSUMERS GREATER CHOICE. IF A MANUFACTURER CHOOSES NOT TO SELL A PARTICULAR MODEL IN AUSTRALIA, A CONSUMER MAY NOW HAVE AN OPTION TO SOURCE THIS MODEL OVERSEAS.”

Paul Fletcher MP - Minister for Major Projects, Territories and Local Government

with no home-grown industry to protect, why bother with all the restrictions on people bringing the car they wanted in from abroad?

The possibility of relaxing, or even removing, restrictions on importing new or second-hand vehicles continued to bubble along on the edge of the consumers’ consciousness for the next few months.

will be able to import a new motorcycle or right-hand drive car from another country with comparable standards to Australia's – for the moment this means the UK and Japan.

The vehicles must be no more than 12 months old and have traveled no more than 500kms. And a consumer can only do this once every two years.

Along with other changes to rules around exotic, classic and special purpose vehicles, Mr Fletcher stated that the $12,000 duty on imported used vehicles would also be abolished.

“Over one million new vehicles are sold in Australia today; over 90 per cent are imported and within two years all cars will be imported once Ford, General Motors and Toyota cease local manufacture”, said Mr Fletcher.

“With around 30,000 vehicles a year expected to be personally imported, most Australians will continue to purchase vehicles directly imported by manufacturers and sold through their existing dealer networks.

“These new arrangements however will offer consumers greater choice. If a manufacturer chooses not to sell a particular model in Australia, a consumer may now have an option to source this model overseas.”

That the government would support the idea of the consumer sidestepping the traditional dealership channels seemed to catch new-car industry supporters by surprise.

Many are unhappy that such proposals are now being

“THE POLICY RATIONALE THAT IT WILL

GIVE MORE CHOICE FOR CAR BUYERS IS MISGUIDED AND DISREGARDS THE CONSUMER RISKS ASSOCIATED WITH A PERSONAL IMPORT VEHICLE.”

Bruce McDonald - CEO Australian Automotive Dealer Association (AADA) The story got another bump in March 2015 when the Competition Policy Review (also known as the Harper Review), released its report on competition laws and policy. One of the Review’s recommendations was that parallel import restrictions on second-hand cars should be progressively relaxed.

The government took several months to consider the report's findings and, in its November 2015 response, said it would not be acting on this recommendation.

‘Following consultation as part of the review of the Motor Vehicles Standards Act 1989 and having regard to consumer protection and community safety concerns, the Government has decided not to proceed with reducing parallel import restrictions on second‐hand cars at this time.’

It was an answer that seemingly put to bed the idea of parallel imports. However, some saw a critical element missing from this response – there was no mention of the parallel importation of new, or near-new, cars.

And that, it would seem, was deliberate. For now, the story is back again, only this time it has moved out of the realms of committees and commissions and has the weight of the Government behind it. Paul Fletcher MP - the Minister for Major Projects, Territories and Local Government - released a statement announcing planned changes to the Motor Vehicles Standards Act 1989. And the changes are substantial.

The law will be changed so that, from 2018, a consumer

entertained and were quick to highlight the potential trouble that consumers, and indeed the new-car industry, could find themselves in.

The Australian Automotive Dealer Association (AADA), led by CEO Bruce McDonald, expressed its disappointment at the announcement.

“The policy rationale that it will give more choice for car buyers is misguided and disregards the consumer risks associated with a personal import vehicle,” said Mr McDonald.

“A consumer may be prepared to sacrifice the lack of a manufacturer’s warranty and limited protection under Australian Consumer Law to satisfy an appetite for greater choice. That is a decision for a consumer who cannot expect or blame the authorised dealer network in Australia if spare parts or specialised diagnostic equipment is not available. Dealerships have invested billions of dollars in facilities, technology, and training to effectively service the products they sell.”

“The Australian Government should not confuse consumer choice and ‘buyer beware’ with its fiduciary duty of care of consumer protection.”

The Motor Trades Association of Australia (MTAA), led by CEO Richard Dudley, said the announcement was ‘illogical, ill-conceived and will significantly increase risk to consumers’.

That was a sentiment shared by Tony Weber, CEO of the Federal Chamber of Automotive Industries (FCAI) who said: March 2016 Motor Trader | 11

“Not only is the Government taking a 'buyer beware' sentiment that would see many Australians caught in highrisk situations with their vehicles being outside established service networks; the Government is misleading consumers by telling them a used vehicle with 500kms or one that is twelve-months old, is new.”

The industry is right . . . in some ways. The arguments surrounding consumer protection, warranty protection, higher insurance premiums, finding a suitable repairer and so on, are perfectly valid.

In just the past few weeks, the NSW Police and NSW Fair Trading have targeted a number of car dealerships in Sydney on suspicions of odometer tampering of secondhand cars imported from Japan. That is a slightly different scenario, of course, but the argument remains – importing cars from abroad doesn’t, it would seem, give the consumer the same ‘chain of evidence’ as buying through official importer and dealer channels.

The government may believe that consumers being able to import cars will force dealerships to lower prices. However, cars available on the Australian market are often extremely high-spec and they do, for the most part, compare favourably to their UK equivalents. And that is before the costs of paying tax, shipping and other sundries are involved.

And even though the Australian Competition and Consumer Commission (ACCC), in its response to the 2014 Review of the Motor Vehicle Standards Act 1989, stated that it ‘supports the reduction of barriers for the parallel importation of new and quality used vehicles’ and that potential safety issues could 'be addressed appropriately through relevant regulatory and compliance frameworks,

“THIS IS A BIG WIN FOR

CONSUMERS AND A DECISION THAT WILL OPEN UP CHOICE, HELP PUT DOWNWARD PRESSURE ON PRICES, AND INCREASE COMPETITION WITHIN THE AUSTRALIAN CAR MARKET.”

Michael Bradley - CEO of the Australian Automobile Association (AAA)

12 | Motor Trader March 2016

“BEING ABLE TO ACCESS WIDER

MARKETS FOR NEW CARS IS GOOD NEWS FOR CONSUMERS, BUT THERE IS NO REASON NOT TO EXTEND THESE REFORMS TO ALSO COVER SAFE AND EFFICIENT SECOND-HAND CARS.”

Matt Levey - Director of Campaigns and Communications at CHOICE

consumer education and business engagement', they also recognise that problems might arise. On its website, the ACCC states that ‘it may be more difficult to obtain a remedy if something goes wrong with a parallel import’.

The other side of the argument has its supporters, of course, and the government’s claim that the changes will offer consumers greater choice is true – although with the more than 300 models from 67 brands available here, it would be a tough ask to go looking for a new car and not find something you like.

The Australian Automobile Association, which represents associations such as the RACQ and the RACV, was pretty positive: “This is a big win for consumers and a decision that will open up choice, help put downward pressure on prices, and increase competition within the Australian car market,” said AAA Chief Executive Michael Bradley.

“We think this is a prudent first step, requiring that the imported cars be effectively compliant with Australian safety standards, and have less than 500 kilometres on the clock.

“We also think it’s time these import restrictions were lifted because from 2018 there will be no Australian car manufacturing industry to protect.”

Other groups, though supportive of the move, suggested the proposals didn’t go far enough.

“Expanding our access to markets empowers consumers to seek out the best deal, both in price and in product,” said Matt Levey, Director of Campaigns and Communications at CHOICE, the consumer advocacy group. “While we welcome these reforms, it is frustrating that the government has put the brakes on reforms to second-hand car imports that would have benefited Australians.

“Being able to access wider markets for new cars is good news for consumers, but there is no reason not to extend these reforms to also cover safe and efficient second-hand cars. We hope that the Federal Government will consider broadening its reforms in the future.”

It is inevitable that the story on parallel imports will continue to gather pace and the voices, on both sides of the argument, will become louder and more strident as 2018 gets closer and Ford, Holden and Toyota finally close the doors on their factories.

In the meantime, as stakeholders prepare to discuss the implementation of the reforms, there is one item affecting the new-car industry that just about everyone agrees should be changed – the Luxury Car Tax (LCT). The tax threshold is set at $63,184 and imposes a 33 per cent levy on the amount above that mark. Bizarrely, it means Toyota, the nation’s bestselling brand, is hit harder by the tax than any ‘luxury’ make.

Now that is a restriction on the industry, and an artificial inflator of prices, that could be removed without a dissenting word from anyone.

News

Brian Bauer, Executive Director, Office of Fair Trading

DOB IN A BACKYARDER INTEL MAKING INROADS B UYING A CAR is the second-largest expense for most Queenslanders. The illegal conduct of unlicensed motor dealers or ‘backyarders’ adversely affects both consumers and legitimate motor dealers.

In addition to tarnishing the integrity and reputation of the motor dealing industry, unlicensed dealers create an uneven playing field. They have an advantage over legitimate motor dealers because they have lower costs. They don’t pay licence fees, they don’t take the time to complete proper sale documentation and may sell vehicles that aren’t roadworthy.

Consumers also face detriment for many of the same reasons – deficient sale documentation, possible odometer tampering or they may be sold a vehicle that isn’t roadworthy. Added to that are the obvious difficulties for a consumer in seeking redress if something goes wrong with the vehicle.

The Office of Fair Trading’s (OFT) job as a regulator is to promote marketplace fairness. To deter unlicensed motor dealing OFT takes all complaints about unlicensed traders seriously. In addition to acting on complaints, the OFT undertakes proactive compliance operations of the motor industry to ensure industry professionalism is maintained.

Compliance operations focus on illegal practices which may cause disadvantage to legitimate motor dealers or detriment to consumers.

In addition, they provide an opportunity for trader education to make sure motor dealers are aware of regulatory requirements under the Motor Dealers and Chattel Auctioneers Act 2014 (MDCA) and the Australian Consumer Law. Last year, the OFT worked closely with the MTAQ analysing intelligence and data received from the MTAQ’s ‘Dob in a backyarder’ website. The OFT identified locations

where it was suspected that illegal activities, including backyard motor dealing, licensed motor dealers misrepresenting themselves as private sellers and odometer wind-backs were being performed.

From this information, 38 sites across Brisbane, the Gold Coast and the Sunshine Coast were identified.

They formed the targets for ‘Operation Simazine’ and compliance spot checks were carried out at each location.

Over the course of the operation, 32 businesses were identified as trading illegally and compliance action was taken against them. Inspections will continue throughout 2016 targeting licensed dealerships, auction houses and online car sales websites to stamp out practices in breach of the law.

LAST YEAR, THE OFT WORKED CLOSELY WITH THE MTAQ ANALYSING INTELLIGENCE AND DATA RECEIVED FROM THE MTAQ’S ‘DOB IN A BACKYARDER’ WEBSITE. Dealerships found to be in breach of the law in ‘Operation Simazine’ were inspected again in February and March 2016 to ensure breaches were rectified. Businesses that were still performing illegal activities face significant enforcement action, which could include infringement notices up to $10,800 for a corporation, or court action where fines of up to $220,000 for an individual or $1.1 million for a corporation may be imposed.

Odometer readings are one of the major aspects consumers consider when buying a used car. Consumers have the right to believe the mileage stated on a vehicle is honest and accurate, so they can make informed

decisions on such a major purchase.

Odometer tampering is as old as the used car industry itself, however it is another offence where consumers are exploited and at risk of serious detriment.

Consumers are naturally attracted to vehicles with lower odometer readings and the reading provides them with an indication on upcoming manufacturers’ recommended service requirements.

Consumers are at risk if they believe a vehicle doesn’t yet require a scheduled service when in fact it is well overdue, and they will have higher than expected maintenance costs due to the higher level of wear and tear resulting from the extra miles travelled.

The growth of internet advertising is one of the reasons behind the increase in private sales. Private sellers often seem to believe they have less to lose, however they are also required to comply with the law. The OFT recently prosecuted Emran D’yab for making false representations about a motor vehicle. In January 2016 the Brisbane Magistrates Court heard that D’yab had misrepresented the odometer of a motor vehicle to a consumer by winding it back by more than 170,000 kilometres. The defendant’s conduct was not consistent with the integrity, due care and skill that is required by motor dealers and expected by the public. The magistrate found D’yab had breached the legislation and imposed a significant fine against him.

In 2015, the OFT received 771 complaints about the motor dealing industry. Of those, 58 specifically related to unlicensed or unregistered dealers and 22 to odometer tampering. The OFT notes these figures have decreased from 2014, however, will continue to work hard to reduce them further.

As well as a focus on unlicensed or backyard dealers, the OFT is also open to suggestions on the kinds of practices that motor dealers want to see monitored more closely. You can email your issues to OFT.compliance@justice.qld.gov.au.

We would be happy to hear from you.

March 2016 Motor Trader | 13

News

STAYING SAFE AND HEALTHY IN A CHANGING INDUSTRY M OTOR CARS ARE becoming increasingly complex.

Computers, hybrid systems, allelectric power systems – the changes in technology have been extraordinary.

The change in the retail business has been equally extraordinary.

Customers are tech savvy and well informed. Once, prospective buyers made around five visits to a dealership before making a purchase. Now, nearly 90 per cent of potential buyers visit dealer and OEM websites, and a high proportion use social media to seek recommendations or gauge other peoples’ experiences.

A growing number of dealerships are now providing online-only sale prices and planning internet-only sales teams that focus on lead generation and customer retention solely through digital contact.

The shift to screen-based administration and sales systems means increased time using computers and it is important to remember that long-term computer use is associated with increased musculoskeletal discomfort and even injuries. It is important to stay ahead of this trend and avoid costly injury claims and lost productivity

by providing all employees using computers the right knowledge to protect themselves against muscular fatigue and pain.

The MTA Queensland is constantly developing new ways to support members and can now offer the unique Practical Ergonomics training program – a program that addresses this significant cost for many businesses and growing concern for dealerships.

Developed by Dr Elizabeth Kirk (PhD), who has spent many years researching ergonomics and work-related injuries, the Practical Ergonomics training program is much more than just upskilling.

It is about increasing the knowledge and awareness of health and safety issues, providing real work skills and empowering each employee to take action to protect themselves and others from harm.

“These days the computer is an essential part of our work and home life,” said Dr Kirk. “It is increasingly important to develop the work skills we need to avoid long term harm with the associated economic and personal cost.

“With the continued shift to a ‘knowledge’ economy, these programs provide ongoing engagement and

ELIZABETH’S TOP TIPS FOR COMFORT WHILE WORKING

• Combine good hydration and your 10,000 steps a day goal by using a small glass or water bottle at your desk with regular refills.

• You blink only 1/10 of the normal rate when working on a screen. Look into the distance or at a green space poster (like a cool rain forest picture) to relax your eyes and consider using computer eye drops.

• Get a colleague to photograph you while you are working. You might be surprised to see that you are not sitting in the relaxed balanced work posture. Try to ensure you are resting back in the chair with both arms resting equally on the work surface.

• Taking a class like yoga or body balance is wonderful for your long-term health and wellbeing. I like kickboxing as some days I just feel the need to beat the hell out of something!

• Don’t forget to take care of your mental health. Taking time for yourself is not selfish, it is just common sense. We are at our best when our battery is fully charged!

economic benefits to business.”

In an industry that is constantly evolving, the Practical Ergonomics program offers a truly effective method to help keep your employees, and your business, healthy.

Practical Ergonomics Jumpstart your Wellness Program. Reduce Sore Backs, Aching Necks and Tired Eyes with One Simple FREE Checklist

Phone: 1800 884 137 // Email: mi.training@mtaglobal.com.au // www.mtaglobal.com

14 | Motor Trader March 2016

20160354

BOOK YOUR FREE KEY POINT WORKSTATION ASSESSMENT NOW

STAFF TRAINING A GREAT INVESTMENT! A NEW and UNIQUE training program designed to give all computer users a comprehensive set of skills to manage the growing rates of musculoskeletal discomfort associated with computer use.” Dr Elizabeth Kirk PhD The internet has made a dramatic change in the way customers communicate with your business. Salespeople now spend less time on their feet and more time in front of their computers. In fact, the new breed of salesperson is selling cars from their desk.

This new trend for your sales force has led to a new trend in training. To improve profitability, companies are now looking at office ergonomics training to increase revenue streams by decreasing discomfort, absenteeism and healthcare costs, and improving staff retention and productivity.

The aim of this training is very simple. It gives computer operators the multidisciplinary knowledge they need to better care for themselves while working. But more importantly - and the truly unique part of this program - is that it also provides the training and support your operators need to immediately transfer that knowledge into effective work skills. This training will give each participant a full understanding of...

• Causes of work-related musculoskeletal discomfort and disorders • The latest ergonomic and healthy work behaviour recommendations • Preventative measures - including stretches and the use of diagnostic tools • MOST IMPORTANTLY, Practical Ergonomics provides the knowledge and skills that ensure your staff can immediately

apply and get benefits from this training in your workplace.

In addition, the use of quick reference handouts and ongoing work tips further supports their ergonomic, health and wellbeing training.

Managers and team leaders will also receive a detailed manual outlining the latest research on the management of work-related musculoskeletal discomfort and disorders.

The training course is delivered in stages, including a one-onone session at the trainee’s workstation. All stages are designed to be delivered in-house at a time that suits you and your team.

Book now and give your staff, and your business, the training they deserve.

COST This 3-hour short course is delivered over one or two days depending on group size.

Prices vary with number of participants.

Contact us for a quote.

MORE INFORMATION Phone: 1800 884 137 Email: mi.training@mtaglobal.com.au Websites: www.mtaglobal.com.au www.practicalergonomics.com.au

Address Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 Postal PO Box 4530, Eight Mile Plains, Qld 4113 Phone 1800 884 137

20160339

THE BODY CORPORATE INSTITUTE and MTA GLOBAL

MAKE: FORD MODEL: MUSTANG NOTCHBACK YEAR: 1968 ENGINE: 289CC WINDSOR V8 OWNER: JEFF AND SARAH THOMASEN OWNED: 2010

A MODEL

AMERICAN

I

F YOU’RE A bit of a petrolhead, then you would no doubt know that Ford’s new Mustang has landed in Australia.

Not that you’ll be able to get your hands on one for a while. The new Mustang - available with either a 5-litre V8 or a 2.3-litre 4-cylinder EcoBoost engine - has hit the sweet spot with Ford fans, and when the first shipment arrived in December 2015, the company announced that dealers had received 4000 pre-orders and that the stock for 2016 had sold out.

There is certainly something about the Mustang that gives it universal appeal. And the numbers back that up – in its various incarnations, the Mustang has been in production continuously for 50 years and more than 9 million of them have been sold.

And it’s not hard to see why the car has proven so popular. Barring some unfortunate design efforts of the late 80s and early 90s, the Mustang has always looked tremendous, has always been powerful, has always sounded just right. And who wouldn’t want to own a car that is so inextricably linked to the Bullitt-era Steve McQueen – a time when he was the coolest man on the planet.

Bullitt, the movie, was released in 1968, the same year that this wonderful Mustang was built.

The Ivory Gold notchback has been owned by Jeff and Sarah Thomasen since they married. It was originally imported to New Zealand from California by Sarah and

16 | Motor Trader March 2016

her first husband before being brought to Australia. Extensive restoration was done in New Zealand including upholstery, an engine refresh and a bare metal (enamel) paint job.

Jeff, a mechanic and Owner of JR Automotive in Cairns - an across the board service workshop operating for more than twenty years - says the Mustang has always been in pretty good shape, though he has rebuilt the suspension and overhauled the brakes to bring it back into tip-top condition.

“The engine - the original 289 Windsor - was leaking a bit of oil and blowing a bit of smoke on start-up so I have refreshed that. The original carburettor was pretty shot so I have installed a different manifold and carburettor as well.

"We have kept it as original as we can - it’s a classic and deserves to remain in the era that it is. All original parts have been kept as we are actually in the process of selling the vehicle and a buyer may wish to have them.”

An enthusiast of classic cars - his first car was a Ford 10, an E94A - Jeff has a soft spot for Ford and the Mustang.

“Mustangs do have quite a bit of appeal about them. I am an American muscle car fan and do love the older cars. To me the Mustang is a pretty cool looking car.

“But I am interested in all classic cars - I am a mechanic, after all!

“And it’s lovely to maintain an older car. They’re easier to work on because you can actually get at the things! We’ve had some special old classics to repair at the workshop over the years. They are always a talking point and customers love to see a classic being maintained.

“It’s really quite enjoyable to have a weekend off and just work on the Mustang.”

The couple are members of the Far North Queensland Ford Club and though they do take the Mustang out for club runs, they are selective as to the time of year they do it.

And for good reason.

“We get away on club runs when we can,” says Jeff.

“But the car is not air-conditioned and we have a fairly hot climate up here so we have tended to wait until it is winter to do them!”

Though the car may not be their daily driver, or be out on the roads as often as they might like, thanks to the couple’s efforts in keeping the Mustang in good condition, it has plenty of admirers.

Be it at a car show, the occasional cruise of the streets of Cairns, or being used as a wedding car at Jeff and Sarah’s nuptials, the Mustang is a real head-turner.

“We have shown it in competition at a car shows and it has done well,” says Jeff. “We picked up an overall first

place at the Innot DO YOU HAVE A PRIDE AND JOY Hot Springs Car IN THE GARAGE THAT YOU WOULD and Bike Show a LOVE TO SEE IN THE PAGES OF couple of years ago. They’re old MOTOR TRADER? school up there Contact Jonathan Nash at jonathann@ and they loved the mtaq.com.au or 07 3237 8721 and let’s Mustang. see if we can share your classic “The car has with other members. been used for many weddings and formal functions over the years and always looks good 'on show'.

"We do get a lot of interest when we take the car out for a drive. People wave and flash their lights. There are all sorts of people around who are interested in cars and come and take a look at it.”

The Mustang is now up for sale, and there will, no doubt, be plenty of interest in it – there are a lot of Mustang fans around. With luck, the 48-year-old classic will end up in the hands of admirers like Jeff and Sarah. And if it does, then it should still be turning heads for another few decades.

March 2016 Motor Trader | 17

Make the most of your MTA Queensland member benefits.

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facility that settles into a Commonwealth Bank Business Transaction Account, Commonwealth Bank will waive the $10 monthly account fee and give you six months free terminal rental*. powered by CommBiz, you can get valuable free data from Commonwealth Bank issued credit and debit cards. Plus, for new CommBiz customers, the Bank will waive the establishment fee and give you your first two tokens free^.

finance helps you buy equipment or vehicles and offers a customised repayment plan, so you can manage your cash flow and improve your working capital. financial needs, including bank guarantees, flexible loans, business lines of credit, business credit cards and overdraft facilities.

To take advantage of our special rates and fees, please call Sara at MTA Queensland on 07 3237 8777 and start saving today.

Important Information: Offers available to referrals made via MTA Queensland between 31/12/2015 and 30/06/2016. *This offer is applicable to existing and eligible new merchant facilities excluding the Albert EFTPOS device. To maintain the fee waiver, you must retain the required products contained in this offer. (Offer includes settling your merchant facility to your linked Commonwealth Bank Business Transaction Account, with a monthly account maintenance fee of currently $10.) Otherwise the offer may be withdrawn. ^Establishment fee waiver and two free tokens are available to new CommBiz customers only. This offer may be extended beyond the specified end date at the discretion of the Commonwealth Bank. Applications for finance are subject to the Bank’s normal lending criteria. Fees and charges are payable. MTA Queensland may receive a fee from the Commonwealth Bank of Australia for each successful referral. Referral Fees are not payable on referrals from existing relationship managed Commonwealth Bank customers. This has been prepared without considering your objectives, financial situation or needs, so you should consider its appropriateness to your circumstances before you act on it. Terms and conditions are available from commbank.com.au. Commonwealth Bank of Australia ABN 48 123 123 124. Australian credit licence 234945.

MEMBERS MEMBERS ESSENTIALS ESSENTIALS

PAUL KULPA GENERAL MANAGER MTA INSTITUTE

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

BOB JANE T MART HERVEY BAY ENTERPRISE STREET EXHAUST & RADIATOR CENTRE

28 Industrial relations

I

N THIS MONTH’S GMs perspective I have been thinking about what is a quality training organisation?

This is the question I have been asked many times by employers, trainers and government.

I believe we all strive for good outcomes given the service-based industry we work in, but what is quality?

For training, I don’t think there is a single answer to this question but rather a number of elements which, together, combine to offer tangible quality.

These include experience, value, student and employer satisfaction, and productive gains (I am sure you can think of plenty more).

I have noticed over the last few years a number of new training providers coming into the market, promising high quality training but failing to deliver. This reminds me of the old saying, ‘If the offer is too good to be true than it probably is’.

Examples of this have been providers offering ‘quality training’ with short turnaround times (and sometimes offering financial incentives) to get your business. On the surface, I can understand why it would be of interest to a business owner to get a financial incentive without doing much other than complete some

GOING TO PUT AN APPRENTICE THROUGH TRAINING, OR GO THROUGH TRAINING THEMSELVES, NEEDS TO BE AWARE THIS IS AN INVESTMENT, NOT A SHORT-TERM FINANCIAL FIX.” paperwork, receive a qualification and obtain money from the government.

A good deal, right? But as I have seen time and time again, once you have signed up there is very little contact from the training provider, or very little training completed. Remember what I said about an offer too good to be true.

Anyone that is going to put an apprentice through training, or go through training themselves, needs to be aware this is an investment, not a short-term financial fix. The time spent training and gaining knowledge increases your business services and this can only be a good thing. Take the time to know your training provider, make sure they have experience and can deliver the product you know you will get benefits from.

Training is our business. The MTA Institute has been doing this for 40 years and most people that have used us know the quality we deliver (i.e. training with good outcomes and greater knowledge).

So, the next time you have a training provider come into your business promising the world, take care, ask questions about what you want to get out of the training and make sure they are reputable. If they are making an offer that sounds too good to be true, remember, it probably is.

March 2016 Motor Trader | 19

E S S E N T I A L S

“ANYONE THAT IS

M E M B E R S

Training GM's Professional Circle perspective

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

Professional Circle training

MTAI APPRENTICE TAKES OUT ULYSSES CLUB ZONE TITLE A NDREW KISBALAZS, A 21-year-old motorcycle mechanic from the Gold Coast, has won the 2015 Ulysses Club Motorcycle Apprentice of the Year Award for the Queensland/ Northern Territory zone.

Andrew, who completed his apprenticeship at the beginning of the year, receives a $1000 Supercheap Auto voucher and also moves forward, as one of four national zone winners, as a candidate for the national Ulysses Club Motorcycle Apprentice of the Year Award. The approximately 28,000-member Ulysses Club created their Motorcycle Apprentice of the Year Award, known as MOATY, to find the country’s best 4th-stage motorcycle apprentice and to promote the idea of a career in the motorcycle industry. To find the national winner, the country is split into four zones - Qld/NT, SA/ WA, NSW/ACT and VIC/TAS – with the winner of each zone shortlisted for the national title.

Though Andrew has been riding and working with motorcycles for years, winning the Qld/NT zone award was a bit of a surprise.

“Motorbikes run in the family,” he said. “My dad’s been riding motorbikes all his life and I got my first bike when I was probably six years old, so becoming a motorbike mechanic was the logical thing.

“I was pretty surprised to win,” he added. “I know I am a good worker but it’s tough to know what the other candidates were like, so to come first in the region is pretty great.”

Andrew works at Ellis Race, Trail, Ride on the Gold Coast. A motorcycle repair business and retailer of a range of bikes - including GasGas, AJP and 20 | Motor Trader March 2016

Andrew Kisbalazs and Paul Ellis

“ANDREW IS VERY

GOOD. . . AND THIS WIN REALLY SHOWS HOW GOOD HE IS. HE IS ONE OF MY STANDOUT STUDENTS”

the Christini all-wheel drive brands – the business is owned and run by Paul Ellis, himself a previous winner of the Ulysses Club Qld/NT zone award.

Understandably proud of his employee’s success, Paul said he knew Andrew had something a bit special as soon as he took him on as an apprentice.

“He was a standout straight away,” said Paul. “It’s not just his knowledge.

He actually wants to impress and always puts the extra effort in. I got very, very lucky with him and if anyone tried to poach him off me I’d be poking them off with a stick!

“Honestly, I would have been disappointed if he hadn’t won it. And I think he is a very good chance to win the national title.”

The procedure to win the Ulysses

Club award includes a tough interview process with the Club’s national adjudicator Graham Moore. Nominees are grilled with a number of tricky technical questions to gauge their knowledge and skill, and their answers are then combined with other factors, including submissions from employers, before a winner is chosen. It was, said Graham, another year of exceptionally strong nominees.

“The standard of candidates was very high,” he said. “The interview I have with the nominees includes questions regarding practical mechanical and electrical skills on matters such as EFI systems, suspension systems, brakes, engines and electrical systems. And Andrew absolutely blitzed them. His technical knowledge was brilliant.”

Andrew was guided through his apprenticeship by experienced MTA Institute trainer Ken Rahley. Having also trained a number of other students to Ulysses Club awards - including last year’s national winner Peter Cooke Ken is confident Andrew has what it takes to win the national crown.

“Andrew is very good,” he said.

“And this win really shows how good he is. He is one of my standout students.

“In this job, when you get students who flourish, take your lead and expand on that, it is very gratifying and I would not be surprised if he took out the national competition.”

The announcement of the National 2015 Ulysses Club Motorcycle Apprentice of the Year winner will take place at the Club’s national rally in Tasmania which takes place from February 29 – March 6.

The winner will receive the prestigious title, the top prize of a new Honda CBR500R motorcycle and 12 months insurance from QBE.

MTAIT TRAINER PROFILE

SHANE PALMER

Currently, that work experience means assisting the latest Auto Initiation course. The nine-week pre-vocational course has a five-week workshop training element and for two days each week 15 students, their MTAI trainer Alex Fletcher, and Chris have used the state-of-the-art facility at the Sir Jack Brabham Automotive Centre of Excellence, to conduct that element of the program.

“Before Christmas, I did a couple of days with MTAI trainer James Dixon out in the field,” said Chris. “And that was great. Now, I come in for a couple of days each week when the kids are here in the workshop. We have done some tyre fitting training and I have been involved in showing the kids what tools they are using, how to use them and in what capacity, as well as

going through some theory in the classroom and so on. It has been quite a challenge but an enjoyable one. They are a good bunch of students.”

“Chris has been a big help for the Auto Initiation course students,” said Marcello Riotto, MTA Institute Operations Manager. “We don’t have any trainer positions available at the moment but we thought we would give Chris the opportunity to do some group training with these students as he was keen to do some work experience.

“Being a trainer is different," added Marcello. "It is one thing to do your trade but another thing altogether to teach it. But I think this experience has been invaluable for Chris because it gets him some exposure in the field he wants to work.

“We don’t do this sort of thing often but we are in the automotive industry, and if we can help a colleague to progress their career then we will.”

Once the Auto Initiation program finishes, Chris will continue to look for opportunities in the sector.

“Once this comes to an end, I will be looking for some training work,” he said. “And I’ll certainly be keeping in touch with Marcello.”

When did you become a trainer for MTA Institute?

Why should someone consider a career in the automotive industry?

2014.

It’s a growing industry and there will always be a job for a person who has the right attitude. Also, the technology is always changing and provides great variety in your job.

Chris Hart with one of the Auto Initiation students

What geographical area do you service?

North Queensland (Cairns, Townsville, Mackay, Rockhampton).

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

What is your specialised area?

Collision Repair and Refinishing.

What is your background in the industry?

20 years of skills and professional experience in collision repair and refinishing industry.

Helping the apprentices reach their goals of becoming qualified tradespeople.

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

Making sure the apprentice understands the trade and showing them how to improve their skills.

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

You need to have a passion for the motor industry.

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

Spend time with the family, camping and fishing.

March 2016 Motor Trader | 21

E S S E N T I A L S

HRIS HART HAS had a rough 18 months.

Back in 2014, the 45-yearold mechanic ruptured his right bicep – an injury so nasty it is has left him unable to work fully in the workshop.

“I was just emptying a rubbish bin when it ruptured,” said Chris.

“It just snapped. The surgeon ended up having to drill through the bone and reattach the tendon with a screw.

“Unfortunately, the accident has resulted in me losing strength in my arm and gripping power in my hand.”

Realising that his career in the workshop could be over, Chris began to look for a place where his skills and experience could still be of value and, excited by the possibility of teaching his trade, took a Certificate IV in Training and Assessing while recovering from his injury. He subsequently contacted the MTA Institute, through a rehabilitation employment service, looking to gain some work experience.

“I’ve actually always wanted to be a trainer in some capacity,” he said. “And the injury sort of forced my hand to look at it again. I finished the Cert IV in October last year and the rehabilitation employment service contacted Marcello at MTAI and he arranged for me to do some work experience.”

M E M B E R S

CHRIS GETS A LOOK AT LIFE AS AN MTAI TRAINER C

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

Professional Circle training

NICOLE FORGING AHEAD WITH AUTO CAREER

F

OR MANY YEARS, there has been an unhealthy shortage of skilled employees across the automotive industry. Right now, that shortage is estimated at some 16,500 workers across all sectors.

In what has traditionally been a male-dominated industry, encouraging women to consider the industry as a career is part of the answer to the skills shortage and, in recent years, more women than ever are looking to do just that.

Nicole Bartels is one of them and the 32-year-old, 4th-year light vehicle apprentice, working with Gympie Diesel and Dyno, is making quite an impression with her ability.

Nicole was always attracted to the possibility of becoming a mechanic.

“I’ve been around cars since I was little,” she said. “My Dad loves his Fords and I was always out in the shed helping him. My brother is also a mechanic and when the opportunity came up for me, I took it.”

Nicole had a variety of jobs within the industry, including as an accessories fitter with an ARB 4x4 store - a shop that just happened to be next door to Gympie Diesel and Dyno. Nicole took every opportunity to wander next door and talk to the team.

“I was always in there asking questions, and we would talk about me getting an apprenticeship," said Nicole. "When they moved to their new shop and were looking for new

STUDENT OF THE MONTH ZANE LORD-MILLER is the MTAQ Student of the Month for January. The 19-year-old, 4th-year Heavy Commercial Vehicle student, working with M&H Oakey near Toowoomba, has impressed with his skills, work ethic and passion for the trade.

“Zane is an excellent student,” said MTAI trainer Ian Exentaris. “We have trained on some big units, including engine rebuilds, Eaton-Fuller transmissions and rebuilding Ross Hydrosteer boxes, and his passion for the trade is commendable.”

22 | Motor Trader March 2016

Nicole Bartels

people, well, it went from there.”

Taking the opportunity offered to her by Gympie Diesel and Dyno boss Simon Myers, Nicole is busy with plenty of the work that comes through the shop. And Simon is happy to give her as much as she wants.

“We have her working on everything,” he said. “Diagnostics, servicing, rebuilds – she is very good and has tremendous attention to detail. She is very keen to learn and that attitude is very important.”

“I’ve been doing a bit of everything,” added Nicole. “I do a lot of the diagnostics and use the scan tools to look up fault codes, I work on the common-rail and direct-injection injectors, I’ve done gearbox rebuilds engine rebuilds, fitted exhausts, Zane has always been interested in the trade – his two brothers are mechanics, and his father is a mature-age automotive apprentice - and started work experience at M&H Oakey while still at school.

“I really enjoy working here,” he said. “We do a bit of everything – hydraulics, air conditioning, COI’s, roadworthy certificates, as well as mechanical work on cars and trucks. I also work on the RACQ breakdown service.”

His boss, Brian Hobbs, is very pleased with Zane’s progress. “He really is very good,” said Brian.

suspensions, intercoolers, turbos – a bit of everything really!”

For MTA Institute trainer Terry Palfrey, Nicole is one of his standout students.

“She is really very good,” he said.

“Her ability to do all the work she does is tremendous. And she is a woman who is succeeding in what is traditionally a man’s world.

She really has exceled.”

Nicole says it is not those in the industry who raise an eyebrow at a woman being in the workshop.

Rather, the awkward moments have come dealing with clients.

“Some customers ask for me to work on their cars," she said.

"But others have asked if there is a guy who can do the work. They don’t say it to my face but my colleagues tell me what they say. I don’t let it bother me.”

It's not nice to hear that this attitude still lingers, and these customers will have to get used to more women working in the automotive trades.

“I think there are more of us getting into it,” said Nicole. “If you’re interested in cars, you should go for it.”

With just two modules left to complete in her apprenticeship, Nicole is looking at a future that may see her running her own business.

“I hope to own my own shop one day.

Something like Gympie Diesel. We do everything here and it’s great. It’s a challenge when you don’t know what’s coming through the door next.”

“He has picked it all up well and I know I can leave him on his own as he knows exactly what he is doing.”

With his apprenticeship soon to end, Zane said he may widen his considerable skills even further.

“I’ll probably look at auto-electrics,” he said. “I haven’t thought about it too much but I think I’d like to stay on and do my auto-electrical training.”

Zane Lord-MIller

E S S E N T I A L S

C

ALLUM MCDOUGALL IS The Automotion workshop is full of classic and exotic cars a lucky bloke. He says so himself. And it’s easy to agree with him. A couple of years ago, the then 18-year-old hit the jackpot when he walked into the office of Automotion – a workshop in Enoggera on Brisbane’s north side - to ask the owners, Cameron Wright and Chris Jordan, for a job.

He got it, and the very next day began his career in a place that would surely be nudging the #1 spot on any young mechanical apprentice’s ‘Places I’d Most Like To Work’ wish list.

And the reason? Automotion specialises in, well, the ‘special’.

From servicing new models from Ferrari, Lotus, Porsche and Alfa Romeo, to the repair and restoration of classic vehicles, Automotion focuses on the exotic and the exceptional.

“I looked at their website before coming out to see them and, to be honest, I thought there was no way This Jaguar E-type is being restored to its former glory they were going to hire me,” said Callum. “There were Ferraris and Lotuses everywhere!” the Ferraris and the other exotic cars.

But employ him they did, and he is That’s a pretty good apprenticeship.” now getting the chance to work on a And that is a sentiment shared by range of vehicles that represent more Callum’s MTAI trainer Roger West, than 70 years of automotive evolution. who also sees the value in working for It’s a fantastic educational opportunity, a business with such a diverse range of and working on the wide range of vehicles coming through its doors. vehicles that straddles that era is “Callum is a very switched on and something Callum enjoys. smart kid,” he said. “And he is lucky to “The older cars are easier to work be here. With the range of work that on – they are a lot simpler - but what they get, Automotion is sort of unique.

I really like about working here is that And that is the sort of thing that there is no repetition. No car is the makes really good technicians.” same and I am challenged every day.”

Founded by Cameron and Chris in Callum’s boss, Cameron Wright, is 2007, the former Ferrari mechanics pleased with how he is coming along. never intended Automotion to be “He’s keen to learn, he tries really involved in classic car restoration. hard and he is a quick learner,” he said.

“When we started out we really “And he turns up to work on time and wanted to specialise in the Ferraris, makes us coffee!

Alfas and the more exotic Italian “Actually, we weren’t thinking cars,” said Cameron. “But a lot of our about taking on an apprentice, but customers have car collections and we decided to give him a go, and he they started to bring in their classics. is doing really well. We get him to Then, word began to get around.

“We don’t take on restorations all work on everything, which means

M E M B E R S

APPRENTICESHIP A DREAM JOB FOR CALLUM

MTAI trainer Roger West, Callum McDougall and Cameron Wright

the time but there are usually one or two jobs in the shop.”

One of those jobs is the restoration of an an E-type Jaguar. Recently arrived, and sharing the workshop floor with a Series I Sunbeam Rapier and an S Series Valiant, the iconic car is in a sorry state and the team have been tasked with getting it in tip-top shape mechanically.

“This is an interesting job because the engine is cast the same as an original E-type but it has modern internals," said Cameron. "It’s essentially a custom engine that will look the same as a Jag original from the outside. It will be very fast and exotic.”

For Callum it will be another great learning experience. However, though he likes the Jag, it’s clear his heart lies with the prancing horse of Ferrari.

“I work with Chris mostly” he said.

“That means I work a lot with Ferraris and Lotuses. And if I HAD to take one home, it would be the Ferrari 550.”

March 2016 Motor Trader | 23

INNOVATION AT THE HEART

M E M B E R S

E S S E N T I A L S

Member matters

Co-founder and Director of Klinge & Co, Tom Klinge

Tom Klinge has been involved in the tyre industry for more than 40 years. Beginning his career as a tyre fitter in a small Queensland country town, he has, through family-owned company Klinge & Co., taken his passion for the business, and his visionary and innovative ideas on tyre management and industry safety, to the global stage, counting some of the world's biggest companies as customers.

P

ASSION, DRIVE, COMMITMENT - words and attributes that any business owner would recognise as being fundamental to their success.

And they are words that come up several times during MT’s conversation with Tom Klinge, co-founder and director of Klinge & Co - a tyre service, training, software and consulting company based in Brisbane.

Long established as one of the world’s leaders in tyre management 24 | Motor Trader March 2016

“WHEN WE STARTED,

WE HAD A VISION OF WHERE THE BUSINESS WOULD GO AND WE GET A GREAT DEAL OF SATISFACTION WATCHING THE GROWTH OF THE PEOPLE WITHIN THE COMPANY.”

systems and services, Klinge & Co.’s customers include global mining, construction and transport companies such as BHP Billiton, Rio Tinto and Fortescue and there are more than 200 Klinge employees servicing those customers across the globe.

It has been quite a journey for Tom who, along with wife Dianne, co-founded the business in 1971. It has seen him move from being a tyre fitter working at a Goodyear dealership in the country Queensland town of St

“THE IDEA WAS THAT WE

WOULDN’T SELL TYRES BUT WOULD MAINTAIN THEM. WE WOULD ROTATE THEM, ENSURE THEY WERE REMOVED AT THE RIGHT TIME FOR RETREADING – BASICALLY DO EVERYTHING SO THE TYRES LASTED LONGER AND WORKED BETTER FOR THE PEOPLE WHO OWNED THEM.”

George, to running a company with a global presence and, on the way, influencing the industry to such a degree that the international Tire Industry Association (TIA), in November 2015, presented him with the ‘Ed Wagner Leadership Award’ – a prestigious award recognising the positive influence and impact he has had on the industry.

Tom is the first Australian to be so honoured and in acknowledging his contributions, the TIA recognised him as an ‘innovator and active visionary with a passion for safety’, as well as ‘a pioneer and key innovator in electronic tyre management’ whose product, the Total Tyre Control software technology, is ‘recognised as the standard within the industry’.

“The award came as quite a surprise,” says Tom. “I got the news in an email from the TIA in October and I just kept reading

“When we started, we had a vision of where the business would go and we get a great deal of satisfaction watching the growth of the people within the company.”

The Klinge & Co. story starts in St George, a small, rural country town 500km west of Brisbane, where Tom scored a job with the local Goodyear dealership and found he relished the work, particularly when working with larger tyres.

“During my time there, the Queensland government began building the E.J. Beardmore Dam and, as a result, large earthmoving equipment came to St George,” he says.

“And I really enjoyed working on the large tyres, the OTR tyres. In fact, the bigger the better!”

Following a move to Brisbane in 1971, and an enlightening conversation with a customer, Tom and Dianne started Klinge & Co., their

company which would concentrate on clients that used larger tyre sizes.

Working for a local tyre business at the time, Tom arrived at the customer’s depot later than expected and was told by the client that they wouldn’t mind paying for what had traditionally been a free service, as long as they could get that service at a time convenient to them.

“Dianne and I talked about this, and we really didn’t have much to lose,” says Tom of the conversation that spurred them to found Klinge & Co. “The idea was that we wouldn’t sell tyres but would maintain them.

We would rotate them, ensure they were removed at the right time for re-treading – basically do everything so the tyres lasted longer and worked better for the people who owned them.

That was the vision for the company then, and still is to this day.”

Within a few years, the hardworking couple had secured a number of big-name customers and, in 1975, clinched their first mine-site contract.

It would mark a major turning point for the business.

“It was a very exciting time when we secured the deal with the BHP Gemco Groote Eylandt Mining Company in the Northern Territory,” says Tom. “And it was there that we realised we needed software to be able to track and report on the life and the performance of individual tyres.

“I remember calling Dianne on the radio-phone – and back then you had to book three weeks in advance to use that radio-phone! – and discussing the fact that the manual method of tyre record cards was slowing us down.

“Knowing Dianne was good with computers, I asked her if there was a way we could track the tyres when they go into service, and then record for our customers the efficiencies we were providing.

“It was then, on that day, that we decided on Total Tyre Control.”

March 2016 Motor Trader | 25

E S S E N T I A L S

and reading it! There had been no rumours, no anything, so it was a total surprise.

“However, while my name is on the award, and I am certainly very proud to be the first Australian to receive it, I think it really is an award for all of us here at the company.

M E M B E R S

OF KLINGE & CO. SUCCESS

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

Members matters Today, after 40 years of development, Total Tyre Control (TTC), and its add-on features, is considered the standard for computerised tyre management systems (TMS), allowing tyre dealers, repairers, re-treaders and tyre owners to track information about their tyres in real-time.

“Depending on where you are in the business determines what you’ll get from Total Tyre Control,” says Tom. “If you’re a tyre manufacturer, you have the information coming back to your R&D people. If you’re a tyre dealer you

“TRAINING IS VERY

IMPORTANT. . . WE ARE, IN FACT, A REGISTERED TRAINING ORGANISATION IN AUSTRALIA AND TRAIN SERVICEMEN IN OTHER COUNTRIES AS PART OF OUR CONSULTANCY WORK.”

26 | Motor Trader March 2016

can use the information gathered on the performance of the tyres to do projections on when tyres will need to be replaced, meaning better planning and budgeting. The same goes for the repairer and re-treader.

“With such high-integrity information, customers can see exactly what is happening, they can budget better, be safer, and run their business better.”

The system is constantly evolving to embrace the demands of customers for mobility, as well as to incorporate the advantages of other new technologies - such as tyre pressure monitoring systems, where information comes directly from sensors built into the tyre. And as the benefits of the system become clearer to other industries, so the demand for Total Tyre Control is growing.

“The quarrying, ports and construction type businesses are saying they now have a need for the TMS system,” says Tom. “So, that is where our focus is - on mobility, on using technology such as the Cloud to enable customers to track any number of vehicles they wish, from one to 1000.”

Along with the hi-tech TTC system, Klinge & Co. also provides tyre service training – an area that has been crucial to Tom since he started in the industry.

“Training is very important,” he says.

“We are, in fact, a Registered Training Organisation in Australia and train servicemen in other countries as part of our consultancy work.

“Back in 1987, I was President of the Australian Tyre Dealers and Retreaders Association and was pushing for higher levels of training,” adds Tom. “Bob Hawke had introduced the Priority One scheme, which was aimed at training the Australian workforce, and a few of us in Queensland put together a curriculum for the training of tyre servicemen. It was very successful and we were able to put hundreds of people through that program.

“Sadly, after a few years, the political will disappeared and the program went with it. However, we kept developing it and using it ourselves and in 2003 we gifted that program to the Tire Industry

“FROM MY

PERSPECTIVE, OUR SUCCESS HAS COME BECAUSE OF TOM AND HIS PASSION FOR TYRES AND THE INDUSTRY. . .

THAT PASSION HAS BEEN THE DRIVING FORCE.” Association. Now, it is known as the TIA 200 Level Basic Earthmover Tire Service Training Program and it is used in a number of countries and is available in a number of languages.”

After forty years of running the business - during which time he also received life membership to the Australian Tyre Dealers and Retreaders Association - Tom and Dianne are bringing the next generation of managers through to help guide Klinge & Co. And the family-owned company will still have members of the family at its head.

“Dianne and I are taking a more ‘helicopter view’ of the business these days,” says Tom. “But our eldest son, Russell, is now the General Manager, and our youngest son, Alex, who is a certified earthmover tyre fitter, is involved in the development of our software as well as the marketing and research of the latest mobile systems. Our daughter also plays a role in the business - Klinge & Co. is a real family affair."

Though the next generation is now involved with the company, it’s going to take a bit to slow Tom down.

He is still involved with a number of industry associations and committees, in Australia and overseas, and his enthusiasm and drive to do the best for his customers and the industry is as evident now as it was when the company started.

As Tom's wife Dianne explains: “From my perspective, our success has come because of Tom and his passion for tyres and the industry," she says.

"That passion has been the driving force.”

You can learn more about the Total Tyre Control system and Klinge & Co. at www.klinge.com.au

What has been your proudest business achievement to date?

What is the best thing about working in your industry?

The variety of product available in the tyre industry and being able to offer customers the right option.

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

Look after your staff and they will look after your customers and ultimately your business.

Bob Jane T Mart Hervey Bay Type of business: Tyre retailing

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

Number of employees: 10

Industry contacts.

Trading since: 2006

How has being an MTAQ member benefited your business?

Location: Hervey Bay

MTAQ member since: 2006

What would you say to someone thinking about joining the MTAQ? Just do it.

Up-to-date business and industrial relations advice.

What has been your proudest business achievement to date?

Being in business for a long time through all the ups and downs.

What is the best thing about working in your industry?

Different job everyday.

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

Work hard and watch your expenses.

What would you say to someone thinking about joining MTAQ?

Enterprise Street Exhaust & Radiator Centre Location: Bundaberg Type of business: Mechanical Workshop Number of employees: 2 Trading since: 1985 MTAQ member since: 1990

For the price there is a lot of value.

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

People in the industry.

How has being an MTAQ member benefited your business?

Availability of information and general business support.

March 2016 Motor Trader | 27

E S S E N T I A L S

Growing the number of customers and retaining them as regulars.

M E M B E R S

Member profiles

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

Industrial relations “times are tough” with staff left with little productive work for part of the day.

• Once redundancies are inevitable you must discuss your proposed action with the employee/s concerned.

A discussion is more than just an announcement that their position is no longer viable. The employee should be given an opportunity to provide input into what is being considered. The employee may suggest an alternative solution e.g., converting to casual or accepting a lesser role, or some other proposition that you may not have thought of. You are not bound to accept any proposal that’s raised but must be able to show that a proper discussion occurred.

TED KOWALSKI INDUSTRIAL RELATIONS MANAGER

DEALING WITH A REDUNDANCY

A

N ISSUE THAT is becoming increasingly common for many members, is dealing with a down-turn in business. Once all efforts to cut costs have been exhausted you could be faced with the unpleasant task of reducing staff numbers. Following a proper process is important because an unfair dismissal claim can still flow from a redundancy if not handled properly.

There a number of factors that you must consider;• The redundancy must be genuine. Don’t give redundancy as the reason for a termination if it is actually a performance issue. If the employee lodges an unfair dismissal claim and you are unable to prove that the redundancy was genuine you could have a problem.

Are you able to show a decline in sales; lack of work going through your workshop; lack of profitability etc.?

• If possible, some forewarning of possible redundancies should be given to employees.

Sometimes it could be glaringly obvious that

• If an alternative position is available, even if it’s a lesser role on less money, but still within the capability of the employee, you should offer it even if you don’t think it will be accepted. If no such alternative is available you should inform the employee of that fact.

• Take care in choosing which employee is to be made redundant if there are a number from which to choose. Apply objective measures in the decision making. If poor performance is the reason one employee is chosen over another, it’s important that the poor performance has been evident and discussed with the employee prior to the redundancy decision. Length of service, by itself, is not necessarily a good criterion to apply because an employee with short service might be far more capable than an employee that’s been with the business for a longer period. An employee with a range of skills would obviously be retained over an employee with limited skills. Be careful not to apply any form of discrimination in deciding who to make redundant. Age, sex, marital status should not form any part of the decisions making process.

• If you employ 15 or more employees ensure the correct redundancy payment is made along with the appropriate notice and accrued annual leave.

(If your business employs fewer than 15 employees no redundancy pay is payable – just the notice period and any accrued annual leave.) If you want

the employee to work out the notice period, the employee must be allowed one paid day off for each week of the notice period.

• Having made the position/s redundant make sure you do not re-hire for the same position within a short period. There would need to be some identifiable change in circumstances that could justify re-hiring if the period was relatively short e.g. 3 months or less.

Notice required • Up to 12 months service - 1 week • 1 year and up to 3 years’ service - 2 weeks • 3 years and up to 5 years’ service - 3 weeks • 5 or more years - 4 weeks NB. One extra week is added to the notice period for employees over 45 who have been with you for at least 2 years.

Redundancy pay payable for firms that employ 15 or more employees NB: Any associated businesses must be taken into account in determining number of employees.

YEARS OF SERVICE

REDUNDANCY PAY

Less than 12 months service Nil At least 1 but less than 2

4 weeks

At least 2 but less than 3

6 weeks

At least 3 but less than 4

7 weeks

At least 4 but less than 5

8 weeks

At least 5 but less than 6

10 weeks

At least 6 but less than 7

11 weeks

At least 7 but less than 8

13 weeks

At least 8 but less than 9

14 weeks

At least 9 but less than 10

16 weeks

At least 10

12 weeks

Redundancy pay is paid at the employee’s base rate for ordinary hours of work.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

Accelerate Automotive Pty Ltd Agmech Services Pty Ltd Caltex Hemmant Car Business Dealz on Deane Mansfield Smash Repairs Mechanix Plus Ultimate Auto Care – Kenmore Wilson & Rigby Motor Body Works Withcott Service Centre

Angela Wall Genevieve Gleeson Leeanne Butt Robert Aldons Joann Chivers Ronda McDonald Ian Beckier Glen Sheppard Anne Morton Brett Oliver

1/806 Beaudesert Road, Coopers Plains, Q 4108 38 Raedon Street, Biloela, QLD 4715 112 Anton Road, Hemmant, Q 4174 226 Anzac Avenue, KIPPA-RING Q 4021 32 Deane Street, Charters Towers, Q 4820 Unit 2E/58 Wecker Road, Mansfield, Q 4122 72 Andrew Street, WYNNUM, Q 4178 59 Cedarleigh Road, KENMORE, Q 4069 82 Herbert Street, Allora, Q 4362 8571 Warrego Highway, WITHCOTT Q 4352

Info@accelerateauto.com gen@agmechservices.com.au Leeanne.buttmichalee@outlook.com bobaldons@carbusiness.com joannchivers@bigpond.com office@mansfieldsmash.com.au kismit@powerup.com kenmore@ultimateautocare.com.au Wilrig01@tpg.com.au Withcottservicecentre@bigpond.com

AED AED SSCSAQ ARD ARD NACA AED AED NACA AED

28 | Motor Trader March 2016

Investment matters

MARKET WRAP

I

T WAS A difficult start to the year with global equity markets falling on a weakening Chinese economy, a collapsing oil price and concerns over the US economy despite the Federal Reserve’s rate hike last month.

While sentiment remains weak, from our perspective the reasons for the market fall are not particularly persuasive. The Chinese economy remains soft, but this is largely known to the market. The US economy has slowed a little, but remains reasonably robust. The market has been reacting to the fall in the oil price but this should be positive for global growth. Nonetheless, the weakness has remained persistent and in some pockets, such as technology stocks, it has accelerated.

While individually the reasons for the correction do not seem particularly convincing, a range of factors are contributing to the weakness and these include the following: US Federal Reserve tightens monetary policy. The price action this year suggests the removal of this support has left the market more vulnerable to volatility (the market no longer has the confidence that the US Federal Reserve will step in with quantitative easing as support).

A strong 2015 US market. The US market held up well into the end of last year despite some evidence that the economy was softening. Further, we had seen excessive valuations in technology stocks that left them vulnerable to a pull-back if sentiment were to turn (which we have seen).

Chinese policy mistakes. The Chinese authorities have been doing a reasonable job undertaking the delicate task of rebalancing their economy away from investment. We are seeing service sectors grow and heavy industry investment decline.

However, their handling of the market

has been clumsy over the past year, which has undermined confidence and encouraged outflows from the Asian region. We see two major mistakes— limiting the ability of investors to sell stocks that were up 80%, and the signal that they were to devalue the currency, which only encouraged capital outflow.

Lower oil price driving credit concerns. While the lower oil price is yet to have a positive impact on global growth, the correlation of a lower oil price with the stock market is more to do with deterioration in high yield credit markets given there is a significant amount of debt exposed to oil companies. We note from an Australian bank perspective exposures to resources as a whole remain around 1.7% of book (this compares to 12% for Singapore banks and 17% for Indonesian banks).

The market is off nearly 20% from its high. Of the previous 12 episodes when Australian equities crossed the 20% peak-to-trough threshold, index levels were higher in a year's time in eight cases and they were lower in four. The determining factor is whether the decline in equities preceded a recession and the level of valuation support post the fall.

We have seen a global slowdown in growth rates but nothing to suggest a recession. The outlook for growth remains around 3%. It may surprise many that the G7 has experienced the fastest drop in unemployment on record. The US economy has experienced a slowdown in the oil states as well as a seasonal slowdown in activity levels. Yet consumer confidence is strong and home sales are robust, as is unemployment.

China clearly has its challenges and leading indicators remain soft. We would not rule out a further slowdown in the Chinese economy, but note that

it has been stimulating the economy for some time and there has been some improvement in service sectors, car sales and house sales. The Chinese economy remains one in transition with incomes growing at 7% p.a., low household debt and high savings all providing a good base for further growth. However, excess capacity remains in industries tied to construction. Within China we are seeing strong growth across a range of consumer service sectors and this represents opportunities for Australian businesses.

Recent economic data from Australia has been encouraging.

Job advertisements were up 1% in January and 11% on the previous year.

Unemployment has held up well and while we are cautious on the outlook for housing, we see opportunities in areas such as tourism, agriculture and education. Once we move beyond 2016, then a number of non-residential construction projects should begin to offer support to the economy.

So, while the global economy continues to have some growth challenges and sentiment remains soft, we continue to expect the economy to grow. As we cycle through the decline in energy capital expenditure, the benefit of a lower oil price should begin to become apparent.

DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Investment in a DNR Capital individually managed account can only be made on completion of all the required documentation.

Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within.

March 2016 Motor Trader | 29

The hit list

LAMBORGHINI EGOISTA (2013) THE MAD GENIUSES at Lambo went all out on this one – a bonkers-looking motor created to celebrate the firm’s 50th birthday. A single-seat, aluminium and carbon-fibre creation (with a little anti-radar material thrown in) that looks something like a wingless fighter jet, the Egoista has reactive aerodynamic panels on its exterior to improve stability, and is powered by a 600hp, 5.2-litre V10. Awesome.

T

HE MOTOR CAR certainly has changed a bit in the 130 years since Karl Benz rolled his Patent-Motorwagen out of his garage. From the three-wheeled motorised buggy with its singlecylinder, four-stroke engine and 16km/h top speed, we can now swan about in the lap of luxury, in cars that almost drive themselves, and at speeds which would surely have good ol’ Karl trembling in his

boots. Quite where it’s all heading is anyone’s guess, although a future filled with autonomous cars zipping along wide highways at absurd speeds while their occupants lounge around and relax inside, seems just around the corner.

And as the technology and science of the car continues to move into the realm of what we used to think of as science fiction, so do the designs. Here are a few of the futuristic concept machines that have appeared since 2010.

BENTLEY EXP 10 SPEED 6 (2015) A BRAND NEW Bentley is always something special, and when this beauty appeared at the Geneva Motor Show in 2015, it was the big announcement of an event that’s full of them. Handcrafted and created with all the latest luxurious trimmings, various powerplants have been mentioned for the car should it go into production, but if it’s anything less than monstrously powerful, then it would be a crying shame.

30 | Motor Trader March 2016

FORD EVOS (2011) A VERY NICE effort from Ford that was specifically designed to highlight their new design language. An intriguing four-door, four-seat layout with striking fastback-like, exterior lines, the Evos also incorporates the increasingly popular – at least on concept cars – gullwing doors.

Big on technology, with connectivity and adaptive driving technologies front and centre, the Evos has a lithium-ion plug-in hybrid (PHEV) powertrain which allows the electric motor and petrol engine to work together or separately to maximise efficiency.

HYUNDAI HND-9 (2013) HYUNDAI HAS A real flair for producing tasty-looking concept cars and the HND-9 is every bit as elegant as anything coming from Europe or the United States.

Equipped with a 3.3-litre turbo engine delivering 365hp, its fluid styling – including butterfly doors – and modern and luxurious interior, made this concept a head-turner when it was revealed in 2013.

PEUGEOT ONYX (2012) POSSIBLY THE BEST-looking concept in recent years, the Onyx is a 3.7-litre hybrid V8 engine that, thanks to its energy recuperation system can generate more than 600bhp. There’s some interesting work going on inside, with materials such as ‘newspaper wood’ (made from recycled newspapers, naturally) used to create the interior.

Of course, what’s really special about the Onyx is the way it looks. It’s wide, it’s low, it’s got great curves and the combination of matte black carbon-fibre and real copper sheeting is sensational.

RENAULT DEZIR (2010) THE FRENCH HAVE always had an eye for the stylish, and the Dezir is yet another winner to add to a long list of elegant motors to appear from French manufacturers. Powered by a mid-mounted electric motor, the technology employs a similar system to the KERS (Kinetic Energy Recovery System) seen in Formula 1, where kinetic energy is recovered and stored in the battery.

Constructed from lightweight materials, including Kevlar, and clever aerodynamics that give it a drag coefficient of just 0.25, the DeZir is good for 0-100km/h in 5 seconds with a top speed of 180km/h.

OPEL MONZA (2013) A STUNNING PIECE of work from the folk at Opel, Holden’s German cousin. A 2+2 coupe powered by an electric drive and a compressed natural gas range extender, entry to the Monza was made through two massive gullwing doors.

Inside, information for the driver was displayed on a dashboard that swept from door to door and was used as a single projection surface using LED projection technology.

JAGUAR C-X75 (2010) ORIGINALLY DESIGNED WITH an extraordinary hybrid power system that had an electric motor at each wheel with batteries recharged via two gas turbines, the beautiful C-X75 ended up being slated for production with a 502bhp, 1.6-litre turbocharged and supercharged four-cylinder engine coupled with two electric motors that added a further 390bhp. Capable of more than 354km/h, it’s a terrible shame that plans to produce the C-X75 were shelved. However, one did make a cameo appearance in the latest Bond film, Spectre.

March 2016 Motor Trader | 31

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Industry insight

11 STEPS TO ‘BUSINESS PART NUMBERS MADE EASY’ ONE T HE NUMBERS ARE often a bit of a mystery to business owners.

When you’re busy running everything involved in a business, there just isn’t time to do a degree in finance to understand how it all works in detail. CFO On-Call have come up with a simple way of looking at how the numbers work in most businesses.

Here’s a little more explanation about each one:

1. Break-even Point An often overlooked but vital number in business.

It’s the amount of sales you need to make to cover your costs and overheads i.e. to avoid losses. This is a great place to begin making a profit!

2. Costs These are the ‘direct’ costs of creating your product or service i.e. labour, materials etc. They can be directly compared against your sales to determine, if say, a job or service is profitable. It pays big dividends to know the ‘true cost’ of your product or service, as this enables you to charge the right price to ensure a ‘gross profit’. It’s vital to understand your ‘gross profit’, because if you can’t make an acceptable gross profit, you are not likely to make a net profit i.e. profit after running expenses.

3. Pricing As mentioned above, this is impacted by the costs of delivering your product or service. If you want to make a profit you need to charge a price that will cover your costs and running expenses. Often market pressure dictates price, as you may need to compete on price.

If this is the case and you plan to be profitable, your only room for maneuver might be reducing your costs. Once you’ve set a price it’s vital to monitor profitability constantly to ensure you stay profitable.

It’s very common for costs to creep up, but price is kept the same and profit becomes eroded over time. Many businesses fall into the trap of not maintaining a process for constant small price increases. You can factor it into your contracts with customers or use increased costs as a reason for regular small increases.

Most reasonable people understand that you can’t constantly absorb cost increases

without passing them on. If you deliver a good quality product/service, your customers should appreciate that you need to be profitable.

Raising the subject of a price increase can be a good time to subtly remind your customers of why they deal with you i.e. use it as a marketing opportunity to let them know why you’re the best at what you do.

Make the invisible visible – explain what you do that’s better than your competitors and why it’s actually more economical do deal with you, despite you being a little more expensive e.g. they only have to do the job once with you, whereas a shonky, cheap competitor may cause them to do it more than once or it wears out etc.

4. Running Expenses These are the expenses incurred in the day-to-day running of your business e.g. rent, admin wages, marketing etc. This is an area that can get wildly out of control, if not monitored closely, and easily eat up your profit. All kinds of ‘non-business’ related items can creep in, which as well as being not tax deductible, blur your view of how profitable or not your business is.

It’s best to have a clear view of your business running expenses and keep your personal expenses separate. That way you stay compliant with tax law and also get a more accurate picture of your business profitability.

At the very beginning of your business, it pays to consider what your running expenses will be and factor them into your budget.

5. Budget This is simply a document that sets out your future plan for sales, costs and running expenses, so you can see how much money you will make or lose.

Not having a budget in your business is like ‘flying blind’ and just relying on hope and luck to end up with a profit.

If you don’t have any plan for your profitability it’s highly likely you will struggle to make any. It’s not that difficult to do.

Once you’ve worked it out, you can enter it into your accounting system and compare each month your actual versus your budget, to see how on or off track you are.

It enables you to make changes quickly, rather than waiting until the end of the financial year to discover you’ve made thumping losses

and started to run out of money.

Being able to see a trend in month 3 rather than month 12 of the year, gives you the opportunity to save 9 months of losses (highly worth the effort!)

6. Customer Payments If you give customers time or terms to pay, this can have a big impact on your cash flow. Whilst there may be an agreement or understanding in place about when they should pay, the reality is that not everyone sticks to it.

You need to have policies and processes in place to manage every step of the way, from the contract, to how and when you invoice, what methods of payment you provide, how and when you follow up, arrangements you make for them to pay debts off, sending them to the debt collector etc.

Every dollar in outstanding amounts owed by customers, means that you have to find them from elsewhere i.e. delaying payments to suppliers, borrowing, putting your own money into thebusiness etc.

We often see customer payment handling treated as an afterthought, rather than being run proactively. The danger with this attitude is that customers get the impression it’s OK to make you wait, and you will be behind others in the queue who are more proactive about getting paid.

You just need to have a process in place and someone to stick to it constantly, to ensure a constant flow of funds.

This information is not designed to be a technically accurate lesson in accounting, rather it’s designed to highlight what are the key numbers you need to understand and manage in your business, to help you make a profit and manage cash flow.

If you can get your head around them and put in place processes to manage them, it will be a great start to a sustainable and profitable business.

This information is from CFO On-Calls EBook, '11 Steps to Business Numbers Made Easy'. Catch Part Two in next month's edition.

March 2016 Motor Trader | 33

WINNER 2015 FUND OF THE YEAR ~ MEDIUM

MTAA SUPER – the preferred choice of over 40,000 businesses Simplified super administration Support of local business development managers 2015 Medium Fund of the Year

SuperRatings does not issue, sell, guarantee or underwrite this product.

Go to superratings.com.au for details of its ratings criteria.

mtaasuper.com.au This document is issued by Motor Trades Association of Australia Superannuation Fund Pty Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited.

The information provided is of a general nature and does not take into account your specific needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.