ONLINE TRAINING WITH MTA INSTITUTE Learn at your own pace and at a time that suits you.
Right training. Right place. Right way.
Take the first step to gaining your Motor Vehicle Salesperson or Dealer Licence with the MTA Institute’s online training programs.
▶ MOTOR VEHICLE SALESPERSON COURSE ▶ MOTOR VEHICLE DEALER COURSE No matter where you are, the MTA Institute’s comprehensive training courses are at your fingertips.
▶ Learn online ▶ Work at your own pace ▶ Work at a time that suits you ▶ Experienced trainer on hand to assist you
vehicles to supplement stock for sale. ▶ Manage complex customer issues. ▶ Apply safe working practices in an automotive workplace. ▶ Communicate effectively in an automotive workplace. ▶ Establish relations with customers. Salesperson Course $575 $520 for MTA Queensland members Dealer Course $1,030 $935 for MTA Queensland members
Contact the MTA Institute for more details training@mtai.edu.au // 1800 884 137 20160374
RTO No: 31529
Learn to: ▶ Determine used motor vehicle stock requirements. ▶ Apply sales procedures. ▶ Apply legal requirements relating to product sales.
▶ Appraise and purchase used motor
Contents Official Publication of the Motor Trades Association of Queensland
Follow us on Facebook www.facebook.com/MTAQueensland
HEAD OFFICE Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 P.O. Box 4530, Eight Mile Plains, Qld 4113 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au EDITOR Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Paul Murray POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Barry Browne 03 9807 9154 Email: barry@barrybrownemedia.com.au EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777 SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually
16 16 19
16 10
10
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.
10
30
MTA QUEENSLAND ABN: 74 028 933 848
02 From the editor
CORPORATE PARTNERS
30
04 Policy/Viewpoint 06 Brett Dale appointed CEO of MTA Queensland
20160363
Cover image: Hadrian / Shutterstock.com
08 MTA Q&A NORTHSTAR YAMAHA: MICHAEL AND LISA EDWARDS
MEMBERS ESSENTIALS 19 Training GM's Professional Circle perspective 20 Professional Circle training 23 Members matters 27 Member profiles 28 Industrial relations
Feature 10 A SHOCK TO THE SYSTEM: THE RISE OF THE ELECTRIC CAR
30 The hit list NEW YORK MOTOR SHOW 2016
16 Members Classic COOPER'S MIGHTY MINI: 1965 MINI COOPER S
33 Industry insight QUICK GUIDE TO ‘WORK IN PROGRESS’ AND ITS IMPACT ON WORKING CAPITAL May 2016 Motor Trader | 1
From the editor
H
JONATHAN NASH EDITOR
2 | Motor Trader May 2016
ELLO AND WELCOME to the May 2016 edition of Motor Trader. In our main feature this month we cast our eye over electric cars. At the beginning of April, Tesla Motors revealed the Model 3, the affordable car the company hopes will take it to the next level as an automaker. And if the interest and excitement surrounding the Model 3's unveiling is anything to go by, then Tesla is be on the right track - by the end of April, an astonishing 400,000 orders had been made, even though it won't be in production until 2017. Tesla's success, not only with the Model 3 but with the likes of the Roadster and, in particular, the Model S, has helped to lure a multitude of others into the all-electric car business. Just about every automaker now has one, or at the very least a hybrid, either in its model portfolio or on the drawing board, and there are quite a number of start-ups, technology firms and entrepreneurs willing to take a gamble and enter the fray. For an automotive sector that fell out of favour more than 100 years ago and has barely had a look-in since, all-electric cars could be on the brink of a remarkable comeback. Read on from page 10. In our MTA Q&A feature this month we talk to Michael Edwards from Northstar Yamaha in North Lakes. Michael has spent a career riding, racing and selling the Japanese brand and Northstar Yamaha has been awarded Yamaha’s Platinum Dealer status – a recognition of exceptional levels of customer service. Now, Michael and his team have taken another step forward, moving into a purpose-built facility designed to accommodate the growing business. You can read more on pages 8 and 9. In our Member's Classic feature this month, we catch up with Rodney Hansen from Toowoomba, to talk about his brilliant 1965 Mini Cooper S. Rodney races the Mini in street sprint events, and it is a wonderful example of a car that was built in huge numbers but is becoming a rare sight on our roads. Read more on pages 16 and 17.
In Professional Circle training news, we talk with Ashley Beusche, who won a gold medal at the recent WorldSkills Australia Regional Competition in Vehicle Painting, held on the Gold Coast in April. The 23-year-old will now go on to challenge other spray painting apprentices from across the country at the national WorldSkills competition, to be held in Melbourne in October. In Members' Essentials news, we talk to mechanic and workshop foreman Terry Smith, who recently celebrated 40 years of service with MTAQ member business Jim Chaillon’s Auto Service in Townsville. After four decades, Terry has seen a fair bit of change in the sector, and keeping up to date with the latest technology remains a feature of the industry he really enjoys: "It’s constantly changing and there’s always something new to learn," he says. Find out more on page 23. Finally, it is with great pleasure that we welcome Dr Brett Dale to the MTA Queensland as the Association's new Chief Executive Officer. Dr Dale, who served as the Managing Director of the MTA Institute from 2006 to 2012, has spent the past four years as the CEO of Northern Territory General Practice Education (NTGPE), and returns to lead the MTA Queensland at an exciting time as we continue to reach out to Members, the industry and the public through the concept of the Professional Circle. You can read more about Dr Dale on page 6. As always, we will endeavour to bring you news and insight into the industry, information on the latest training opportunities, and highlight members’ interest. If you have a story worth telling, want to appear in Member Profiles, or have a classic car, bike or truck you would like to see featured, then please contact me.
Cheers, Jonathan Nash jonathann@mtaq.com.au
The benchmark of industry standards.
Representing the benchmark of industry standards, the Professional Circle will bring a new level of connection between the MTA Queensland, its members, the industry and the public. It will reinforce the great value of both the benefits available by being a member of MTAQ and of using the training services of the MTA Institute. And through components such as the 10 Commitments to the Professional Circle, and the displaying of the Certified 10/10 Professional message, it will also be proof to the public that to choose to use
the services of an MTAQ member is to be guaranteed the very highest standards of service and professionalism. As we move through 2016, a focus on highlighting the quality and professionalism of MTAQ Members will be made through established and new channels – including Facebook, Twitter, YouTube and e-newsletters - and new features, products and services will flow through revitalised MTAQ and MTAI websites. The Professional Circle is an exciting development and one that will confirm
the Association’s status not only as the pre-eminent representative for the motor trades, but also as the source of expert and professional services to the public.
For more on the Professional Circle, go to www.mtaprofessionalcircle.com.au
Policy/Viewpoint Changes in technology, systems and practices have meant a rethink on deliverables.
ADVOCACY
KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND
S
PECULATION IS SWIRLING about the contents of the May 3 Federal Budget and the anticipated double dissolution Federal Election set for July 2. I can assure you that my eye will be fixed firmly on the budget and a brief of any impacts on the automotive vehicle chain will be on the website. When the Federal election is called, as is our practice, I will write to the Leaders of the major political parties indicating our key policy positions. Much is happening at the MTA Queensland corporate office. Our focus is on delivering for Members across all our services, and maintaining the systems and technology on which these services operate. We continue to roll out Professional Circle material to Members to utilise in their business and to form an essential element in their work systems and practices. The way we communicate and engage with Members, the industry and the public is being transformed by utilising channels including Facebook, Twitter, Youtube and LinkedIn. The objective is relevancy to both Members and the public. In addition, the strategic plan is under review for 2016-18. I’ve been working through the Service Delivery goals and determining the underpinning strategic actions aligning these with the associated key performance indicators. 4 | Motor Trader May 2016
On behalf of the Association, I’ll be attending the Queensland Government’s Inaugural Advance Queensland Innovation and Investment Summit. It is to be held on 27 to 29 April. It is my intention to attend several seminars including Turning Digital - big data platform and business; Innovation - the future of disruptors; Investing in innovation; Big Bang - corporates, technology and innovations collide; Techos - trends that rule in 2016; and Agriculture and technology. I will report on these in June’s Viewpoint. As I have said many times, advocacy is about substance, consistency and patience. Over a long period, we have been at the forefront warning consumers about dodgy backyard dealers. We work closely with the Office of Fair Trading (OFT) with our ‘Dob in a Backyarder’ program which feeds into the OFT’s ‘Operation Round Up’ both of which seek to limit unlicensed motor dealers preying on unsuspecting consumers. Recent OFT compliance checks at southeast Queensland locations found a total of 32 illegal car dealers. The OFT’s spot checks received wide media exposure, including my statement that ‘consumers who buy cars from these operators (backyarders) are deprived of their legal rights, including a cooling-off period and warranty. The MTAQ has seen cases of customers trading in a car only to discover, after doing some background checks, that they unwittingly purchased a repairable write-off that has been very poorly repaired.’ ‘Dob in a Backyarder’, over its two years, has been most successful. I encourage Members to be alert to unlicensed dealers who give the used car industry a bad reputation and ‘dob them in’ via our website. We will alert OFT to their communication.
As reported in April’s Viewpoint we were not invited to the Queensland Government’s petrol price submit. On behalf of our Service Station and Convenience Store Association Members I wrote to the Minister for Energy, Biofuels and Water Supply Mark Bailey expressing disappointment. In addition, I congratulated him and the Government for holding the summit. Minister Bailey responded in a courteous letter stating that he had asked his Department to keep us in mind when arranging future events. As indicated in April’s Viewpoint, we responded to the Commonwealth Department of Transport and Regional Development’s discussion paper on Vehicle Emissions. In a nutshell, we advocated that whilst supportive of the Australian Government’s measures to achieve the 2030 greenhouse emissions reduction target of 26-28 per cent on 2005 levels by 2030, the MTA Queensland ‘would counsel caution in looking to directly adopt the Euro 6 and adjacent performance frameworks for Australia . . . It seems inappropriate that such a complex framework be considered when the desired emission improvements can be achieved by cost effective and less complex policy options that would not impose such a heavy national and economic cost.’ In previous Viewpoints, I foreshadowed the review of the Australian Consumer Law to which we will make a submission. As part of the review, the OFT held several stakeholder consultation events throughout the State. Divisional Executive Andy O’Hearne attended the Townsville event while I was at the one in Brisbane. Whilst keen to hear the briefing relating to consumer policy frameworks and the associated objectives, I particularly wanted to raise the issue of consumer guarantees, including ‘Lemon Laws’ for new cars. This is a subject that forms part of the ACL Review issues paper to which we will make comment. The other matter I raised was to alert the OFT to misleading consumer advice concerning the
purchase of used motor vehicles from a dealer. Without doubt, the ACL applies to used motor vehicles. The Queensland Government’s biofuel’s mandate continues apace. As advised in a bulletin, all fuel wholesalers and retailers in the State are now legally required to register their business and provide and report on sales taken from Jan 1 2016 to 31 March 2016. This information was required by 30 April 2016. The department has developed a web-based form that allows a fuel seller to submit the initial data that is required under the Liquid Fuel Supply (Ethanol and Other Biofuels Mandate) Amendment Act 2015.
INDUSTRY The Australian Financial Security Authority has released an important, helpful and useful guide to the Personal Property and Securities Register (PPSR). The guide points out that ‘Personal Property’ translates to ‘Goods/Assets’, and ‘Securities Register’ to ‘Debt’. It is intended to help businesses not familiar with the practical implications of the PPSR and explains how businesses might benefit from using the national online system. The guide is on our website and also may be accessed at www.ppsr.gov.au. The Fair Work Ombudsman has released a new online checklist to guide small business owners through the federal and state laws that apply when taking on an employee. It is a simple online checklist which also links to an online pay tool to help calculate pay and conditions. This may be found at www. fairwork.gov.au. In addition, the website links to an improved ‘decision tool’ to help businesses work out if their new workers should be an employee or contractor, and what that means for both tax and super. This includes assistance to determine if tax and super need to be calculated on employee entitlements. The website address is www.business.gov.au Legislation (National Injury Insurance (Queensland) Bill) has been introduced into the Queensland Parliament to implement the National Injury Insurance Scheme (NIIS) in the State. It seeks to provide lifetime
treatment, care and support to people catastrophically injured in vehicle crashes. Funding for the Scheme will be provided by way of a levy to be paid by motorists at the same time as Compulsory Third Party and registration costs and collected by the Department of Transport and Main Roads (TMR). The NIIS will be an additional cost to the Compulsory Third Party Insurance of $32 per vehicle - about 60 cents per week - and will take effect from 1 July 2016. Members considering hiring staff may like to consider the Australian Government’s recruitment service, Jobactive. There is a wage subsidy of up to $10,000 when a business hires and retains eligible mature age staff e.g. over 50 years of age. To find out more, visit jobsearch.gov.au and click the Jobactive for employers button. Small businesses must be SuperStream compliant by 30 June 2016. SuperStream – the standardisation of how employers make super contributions on behalf of their employees – involves employers sending all super payments and employee information electronically in a standard format. The Australian Taxation Office (ATO) is encouraging small businesses to make becoming SuperStream-ready a priority. More than 60 per cent of all Australia’s small business are utilising SuperStream. Some small business owners, who are currently using SuperStream, have reportedly cut time spent on super processing by around 70 per cent each cycle. The Australian Competition and Consumer Commission has advised that Cairns will be the fourth regional location to be studied as part of the petrol monitoring arrangements introduced by the Australian Government in December 2014. Cairns petrol prices are among the highest in Queensland considering its size and location. However, the ACCC also considered a range of other factors before choosing Cairns, such as the price differentials between regional markets and larger cities, price differentials between towns of similar size, and the variability of prices in regional markets. The ATO has identified car retailing as one of the high risk industries of not complying on the superannuation guarantee (SG) obligations.
Commencing from July 1, the ATO has notified of planned audits focusing on the meeting of SG obligations. This can take the form of not paying the compulsory 9.5 per cent on a regular basis, but also covers other obligations regarding SG such as offering choice of fund, providing tax file numbers and keeping adequate records.
NEW MOTOR VEHICLE SALES Yes, there was a lift in the new motor vehicle sales for March 2016 compared with the previous month. In good news, Australian Bureau of Statistics data (seasonally adjusted) indicated that there were 20,516 new motor vehicle sales across Queensland - an increase of 1,008 or + 5.2 per cent. This was the highest of any State and superseded the national growth of +2.2 per cent. Compared with March 2015, there was a better outcome too for Queensland with an increase of 135 or + 0.7 per cent when there was 20,381 new motor vehicle sales. Nationally, there was a significant improvement of +4.2 per cent. The respected VFacts data paints a more sobering outlook. In March 2016, new motor vehicle sales were at 21,470, a decrease of 1,029 or -4.6 per cent from 22,499 for the previous month. Nationally, there was a decline too, of - 0.5 per cent. On year-to-date basis for Queensland, a total of 57,374 new motor vehicles were sold - an increase of 93 or 0.2 per cent. Nationally, there was growth of +2.8 per cent. According to VFacts analysis, the national decline in sales is almost all attributed to a decline in demand for passenger motor vehicles. Passenger motor vehicle sales in March 2016 were down by 9.4 per cent compared to March 2015. On the other hand, sales of SUVs and Light Commercials were up 8.3 per cent and 7.1 per cent respectively. Business and government purchases of SUVs are up 15.1 per cent and 8.3 per cent respectively on March 2015 figures. Business and government purchases of passenger vehicles were down 5.4 per cent and 17.8 per cent on March 2015 figures respectively. The National Transport May 2016 Motor Trader | 5
Policy/Viewpoint Commission reports that Australian consumers have bought a record number of fuel efficient, low emissions motor vehicles leading to the biggest year-on-year increase since NTC began keeping records. As of 2015, there were 72 different types of fuel efficient motor vehicle on the market, up from 59 in 2014. In 2008 there were just seven fuel efficient cars available.
ECONOMY The Reserve Bank Board, at its April meeting, left the cash rate at 2 per cent for the 10th month in a row. There is much speculation about whether the Board will lower the rate following the unexpected fall in the first quarter Consumer Price Index for the first time in seven years. It did state, however, that ‘continued low inflation would provide scope to ease
monetary policy further, should that be appropriate to lend support to demand.’ Time will tell. The National Australia Bank’s March Business Survey showed a rise in both business conditions and confidence, providing assurance that the economy is successfully transitioning through the end of the mining boom. ‘Business conditions lifted to their equal highest level since 2008, while improvements are becoming more broad-based across the economy as the recovery gains traction.’ In Queensland, business confidence was the highest of all States, and above the average. This was offset by a jump in the State’s unemployment rate (seasonally adjusted) by 0.5 per cent to 6.1 percent. Contrary to business conditions and confidence, consumer confidence
according to the Wespac/Melbourne Institute Index was at a 7-month low. All surveys point to ‘fragile’ consumer confidence, but the upcoming Federal Budget will be a significant determinant of both business and consumer confidence.
FINALLY I’ve not forgotten about the Benchmark Survey. I seek an extension on the rain check sought in April’s Viewpoint. Don’t forget to place the Professional Circle material prominently so that the public/clients can see and read it. There are benefits for all - your business, the public and MTA Queensland. I trust you enjoyed the recent two long weekends in a row. Until the June Viewpoint, take care and stay safe.
Dr Brett Dale appointed CEO of MTA Queensland
B
RETT DALE HAS been appointed as Chief Executive Officer of the Motor Trades Association of Queensland (MTAQ). Dr Dale may be familiar to many MTAQ Members. He was, from 2006 to 2012, the Managing Director of the MTA Institute and in that role was responsible for the Institute’s training programs and delivery of those programs to thousands of businesses, students and apprentices across the State. Additionally, the role also saw him develop and lead the MTAQ’s commercial activities. Over the past four years, Dr Dale has been the CEO of Northern Territory General Practice Education (NTGPE) – a regional training organisation delivering training to doctors specialising in General Practice and coordinating workforce distribution across the Northern Territory. Along with the CEO role for NTGPE, Dr Dale also served as the national chairperson for the Industry involving significant stakeholder negotiations and advocacy on behalf of the sector which he believes will benefit the Association and its members. 6 | Motor Trader May 2016
Brett Dale, Chief Executive Officer of the MTAQ
Commenting on his return to the MTA Queensland, Dr Dale said that he was looking forward to the challenge, to promoting the Association’s position as the peak body for the industry in the State and promoting and developing the benefits of membership of the MTAQ. “We will focus on industry, strengthen the Association’s position as the industry’s peak body and take it to new heights,” he said. “We have a great team here and, as part of the
commitment to the Professional Circle, we will continue to improve our support to members and increase the number of services available to them.” Dr Dale has a long history working in the field of education and training, workforce development, trades, logistics and health. Beginning his professional career in the Australian Defence Force, he served in Iraq, Bougainville and Papua New Guinea and, while serving in Iraq, was part of the leadership team that established the Iraqi Institute of Technology, building a trade training centre and creating short courses for trade and technical training. His lifelong commitment to learning, cultivated during his time with the Defence Force, has seen him gain a number of tertiary education qualifications including a Master of Business Administration (MBA) and Doctorate of Business specialising in intrapreneurship in small to medium enterprises (including automotive businesses) across Australia.
Make the most of your MTA Queensland member benefits.
Commonwealth Bank provides MTA Queensland members with a wide range of market leading business banking solutions. • Competitive rates: If you open a new merchant
• Asset Finance: Equipment, car or technology
• Business insights: With a simple iPad app, Daily IQ
• Commercial finance: Find a product that meets your
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.
MTA
QA &
What products and services does Northstar Yamaha provide?
ME: We sell Yamaha motorcycles, ATVs, generators and golf cars, and we carry a massive range of accessories, including riding gear and apparel, as well as spare parts for the bikes and generators. We also offer Yamaha Motor Finance and Insurance, and a complete range of service work on every make and model of motorbike. We are a one-stop shop for anyone interested in motorbikes.
When was Northstar Yamaha established? ME: My brother Matthew set up a business called Star Yamaha at Slacks Creek, south of Brisbane, in 1996. I helped him establish that business and in 2000 we branched out to another store on the north side of town. Matthew owned the store on the south side, I owned the store on the north side and we traded as Star Yamaha North and South. When Matthew sold up three years later I changed the name to Northstar Yamaha. My brother is still in the industry and now runs a business called Jimboomba Star Yamaha.
You recently moved to a new purpose-built facility. Why the move?
Michael and Lisa Edwards
ME: We had a meeting with Yamaha and discussed the fact that our Bowen Hills store was too small and was not the ideal set-up. We got talking about where to relocate and discussed a number of potential sites on the north side of Brisbane. Yamaha suggested a few areas to consider, including here at North Lakes. It is a booming area that, at the time, had no bike shops. In fact, when we looked at leasing established buildings in surrounding areas we discovered they had come up for lease because the businesses had moved
Michael Edwards is a motorcycle fan. More than that, he is a Yamaha fan and has spent a career riding, racing and selling the Japanese brand. His dealership, Northstar Yamaha, was established in 2000 and quickly gained a reputation for excellence which saw them awarded Yamaha’s Platinum Dealer status – a recognition of their exceptional levels of customer service. Now, Michael and his team have taken another step forward, moving into a purpose-built facility designed to accommodate the growing business. here! It was a no-brainer to move to North Lakes after that.
What’s your best-selling bike? ME: Yamaha has a massive range but the best-selling models are those that are part of the Learner Approved Motorcycle Scheme (LAMS). The laws have been updated in the last few years and that has seen a broader range of bikes, up to 650cc, become available to learners. Of course, there is a power-to-weight ratio involved in the LAMS market and people do get a bit confused. Some come in and have a look at the Yamaha R6, which is a pure sports bike, and think that because it is 600cc they can ride it under LAMS . . . that would be a no!
Have you seen much change in the industry – particularly in consumer taste? ME: There have been changes. For example, scooters were strong about 10 years ago but their sales have fallen. The sales of pure off-road bikes is slowing too. Our registerable off-road bikes sell really well and we’re lucky to have the WR range, which is Australia’s biggest-selling registerable endurance bike. Road bikes have always been popular but there has been a shift there too, moving from sports bikes to the ‘naked’ bike.
Who are your customers? ME: We sell bikes to a broad spectrum of people. We’ve even sold a bike to a Treasurer of Queensland!
How many staff do you have? ME: Ten. We have five in the workshop and a number in sales, spare parts, accessories and administration. My wife Lisa does all the admin and also helps out in sales, while my eldest son works here part-time. Everyone who works here rides bikes, which is important. I try to
run the shop like dealerships used to be when I was a kid – places where you could talk to people who knew all about bikes, and the bike world, because it was a passion for them too.
How did you become involved with the industry? ME: Firstly, I left school to do a spray painting trade. I then went to university and did an accounting degree. It was after that when I realised I didn’t just want to work in a ‘job’ -I wanted work I was really interested in and where I would be able use what I had learned to run my own business. And if I was going to run my own business then I wanted it to be all about motorbikes.
Do you remember your first bike? ME: Yes, and it wasn’t a Yamaha! It was a Suzuki A100, which was a road bike I used for dirt-bike riding – it was all I could afford! It didn’t take me long to kill that and I subsequently got a Yamaha YZ80. That was my first Yamaha, and it has been Yamaha for me ever since.
How did you get involved with racing? ME: As a kid I raced motocross and dirt bikes. Then I started riding on the road and realised I really enjoyed riding fast! I didn’t want to do that on the road, so I went to the track. In those days, if you wanted to ride on the track you had to race and that’s where it all started. I raced for 12 years - 6 years in Australian Superbikes and the Australian Super Sport classes as a privateer, and won a couple of titles including the Queensland Superbike title and Queensland Super Sport title. Towards the end of those years, racing had become more of a hobby as I was driving my business, and then I had a big accident during a race in 2004. I was in intensive care for a month and when I had an MRI scan to check for a bleed on my brain it was
discovered I had a broken neck! That convinced me to draw a line under it.
Do you still ride and race? ME: I ride every day – usually a demo model from the shop. I do that so I have experienced everything we sell, which is useful when talking to customers. I like to say ‘On the seventh day we ride’. We are here six days a week helping people feed their passion for bikes - so we get out and do it for ourselves on Sunday! As for racing, I do the odd motorcross meeting here and there, and I did a road race meeting at a club level last year. I’ve also raced ATVs – including at the quad nationals in 2014.
To what do you attribute your success? ME: Customer service is very important. We are what is known as a Yamaha Platinum dealer and there are only a few such dealers across the country. It is a title we earned because of the importance we place on customer satisfaction. Once a customer buys a bike, they are asked to complete a survey about their experience, and only when positive feedback reaches a certain point – above 90% – for a certain amount of time, can you be considered for Platinum status.
What do you do with your spare time? ME: My wife Lisa and I, and our younger children, enjoy riding the bikes and ATVs we have at home. We also own have a couple of horses - Lisa is a keen horse rider.
What are your plans for the future? ME: We will be holding a grand opening celebration on June 4, and Yamaha's 60th anniversary truck will be on site. And then the goal is to grow the business, serve our community, and be the number one dealer, at least in Queensland. We have the premises now, and the right attitude to be able to make that happen. May 2016 Motor Trader | 9
Tesla Model 3
O
N MARCH 31, Elon Musk, founder of Tesla Motors, revealed his company’s newest allelectric creation, the Model 3. The unveiling of the car was met with an astonishing level of excitement and within a month of announcing that reservations for the car were being taken, Tesla revealed that nearly 400,000 deposits had been received. That the Model 3 won’t be sitting in anyone’s driveway before the end of 2017 seemed to matter not a jot. Priced at about US$35,000 (A$45,000), the Model 3 is an affordable option for many. So what will the consumer get for their money? According to Musk, they’ll get a car that is designed to meet the toughest safety standards; will come with Tesla’s Autopilot system and battery Supercharging as standard; will do 0-100kmh in less than 6 seconds; will have room for five adults as well as buckets of luggage space front and back and, as development progresses, an interior and controls that ‘will feel like a spaceship’. Musk also addressed the issue of ‘range anxiety’ - the concern that an electric car will run out of juice before the destination or a suitable charging point has been reached. Even though most people have a daily commute well within the capabilities of electric cars, allaying the fears of consumers who are used to both reaching 600km and more on a tank of petrol and having a service station within easy reach, is a tough job and a perpetual thorn in the side of electric car proponents. To tackle this, the Model 3 will, said Musk, have a range of at least 215 miles (340km) and the company will build more Supercharger stations (strategically located charging stations that act like service stations) and Destination chargers (charging stations located at hotels, restaurants and other ‘destinations’ to which a consumer might travel). Currently, there are seven Supercharger stations on Australia's east coast (on the route from Melbourne to Sydney) and nearly 70 Destination charger locations, with each 'station' having charging points at which owners can plug-in their cars. “We are now at the point where we have built 3600 Superchargers world wide, and about the same number of Destination chargers,” said Musk at the Model 3 unveiling. “And that’s present day. By the end of next year, we will have
“WHATEVER THE STATE OF PLAY
WITH INFRASTRUCTURE AND RANGE, IT WOULD APPEAR THAT THERE IS NO STOPPING THE ELECTRIC CAR BANDWAGON . . . TODAY, JUST ABOUT EVERY MANUFACTURER HAS AN ELECTRIC VEHICLE IN ITS MODEL PORTFOLIO OR HAS ONE PLANNED.”
doubled the number of Superchargers and quadrupled the number of Destination chargers.” That may not be enough, yet, to fully sooth consumer anxiety, but it's clear that OEMs such as Tesla know it’s the greatest hindrance to the adoption of their products. However, whatever the state of play with infrastructure and vehicle range, it would appear there is no stopping the electric car bandwagon. Today, just about every manufacturer has an electric vehicle in its model portfolio or has one planned. Some of the grand names of the industry – companies renowned for their engineering genius such as Aston Martin, Bentley, Porsche and Jaguar – are looking at entering the all-electric market, and those that have yet to commit to all-electric are embracing the possibilities of hybrid technology. It doesn’t end there. Tesla’s success has seen a surge in interest from technology firms and entrepreneurs willing to enter the electric vehicle fray. Firms such as Faraday Future, Renovo Motors, NextEV and Karma Automotive May 2016 Motor Trader | 11
THE FALL AND RISE OF THE ELECTRIC CAR Given the complete domination of the internal combustion engine over the past 100 years, it’s hard to believe there was a time when the electric car very nearly became the king of the road. For a few years either side of 1900, not only were a healthy number of cars on American roads powered by electricity (about 30 per cent were battery-powered), but the official land speed record was held by an electric car - the last being set in 1899 by the
WHAT’S IN A NAME? EVER WONDERED WHERE Tesla Motors got its name? The company is named after Nikola Tesla, a Serbian inventor and engineer who is credited with creating the induction motor and alternating-current (AC) power transmission. A creative genius, Tesla patented hundreds of ideas related to electricity during his lifetime – including wireless power transmission - but is best remembered for his rivalry with Thomas Edison over whether direct current or alternating current was the best way for distributing electricity. During the 1880s and 1890s, the two men fought Nikola Tesla in 1896 what became known as the ‘War of the Currents’ - a ‘war’ during which Edison, who had much invested in DC emerging victorious, ran a prolonged smear campaign to discredit AC. Ultimately, It would be Tesla’s alternating-current that would win out. Falling into obscurity towards the end of his life, Tesla died in 1943 and was all but forgotten. However, his work, ideas, and eccentric personality, were rediscovered in the 1990s and he became recognised as something of a mad genius. Appearing as a character in many fictional works, Tesla was portrayed memorably by David Bowie in the Hugh Jackman film The Prestige.
David Bowie as Nikola Tesla walks through the electrical discharge created by a large Tesla Coil in the 2006 film The Prestige
12 | Motor Trader May 2016
Belgian Camille Jenatzy at 65.8mph (105.8km/h). A number of things helped the electric car to its strong position. At the time, infrastructure was poor outside of cities so short trips were the norm – perfect for batterypowered vehicles. And, unlike petrol-powered cars which required the sometimes dangerous operation of crankstarting, were noisy and had unpleasant exhaust fumes, electric cars were quiet and clean. By the 1920s, everything had changed and electric cars were on the way out. Roads were improving, giving people the opportunity to drive beyond the capabilities of the electric cars of the time; the electric starter was replacing the crank starter by 1912; petrol was becoming more widely available as more and more oilfields were discovered and developed and, perhaps most importantly, the Model T Ford was proving to be a runaway success. Rugged and affordable, and being churned out in huge numbers thanks to Henry Ford’s adoption of the new-fangled methods of mass production, the Model T brought petrol-power to the masses and by 1920 the internal combustion engine had won the race for the hearts and minds of the consumer. And that was that – the electric car was all but consigned to the pages of history. A few concept vehicles would appear from time to time but, for the most part, they were just interesting curiosities that never made it into production. But then, things changed again. The 1970s and '80s were marked by oil crises and a growing awareness and understanding of air pollution and climate science. This understanding prompted renewed interest in ways of making cars much more economical Elon Musk as well as more environmentally friendly. Governments across the world began to act, introducing legislation that compelled manufacturers to focus on developing cars that met new environmental standards. In Australia, the process of imposing vehicle emission standards started in the 1970s and the requirements have been getting progressively more rigorous ever since. Indeed, at the moment, there is a government GM EV1 working group considering, amongst other things, the implementation of Euro 6 or equivalent standards into Australian Design Rules for new vehicles. These new rules would, if adopted, require very large reductions of pollutants. In America, the rules had been tightening for years too and, by 1990, included a requirement from the Californian government's California Air Resources Board (CARB) that made zero-emission vehicles a production requirement for major American automakers to continue to market and sell vehicles in that State. Electric cars were back on the agenda, big time. Manufacturers such as Toyota and Ford introduced electric versions of their current models, while General Motors unveiled the Impact concept at the LA Motor Show in 1990, which was subsequently developed into the EV1. Launched in 1996, the EV1 was the first electric car from a major manufacturer that had been designed exclusively as an electric car. It had a range of 100km, could reach 100km/h in 8 seconds and had a top speed of 130km/h. Only Image: Phil Stafford / Shutterstock.com
are developing vehicles. Technology giant Apple is rumoured to be developing an electric car too, and even Dyson, the vacuum cleaner manufacturer from the UK, is reportedly considering a move into the market. It’s probably not too fanciful to say that it's Tesla’s remarkable success that has been responsible for this turnaround in the fortunes of the electric car. The company described by one former automotive heavyweight as ‘a joke’ could be responsible for the greatest shake-up in the car industry since Henry Ford introduced assembly-line production for the Model T.
available to lease, the EV1 was a big hit with those who had one. And yet, even with these apparently promising signs, the move to push on and mass-produce electric cars faltered. While the EV1 gained a bit of a cult following, GM only built 1,117 units over its production life and determined that it did not present a sustainable business case. Additionally, the major automakers came to an agreement with CARB to permit them to produce low emissions, natural gas and hybrid cars instead of zero-emission cars. While this resulted in an explosion of hybrid vehicle models - most famously led by Toyota's Prius, which launched in 1997 and has sold more than 5 million units since - the troublesome and expensive all-electric car was, once more, destined for obscurity. But not everyone was satisfied with the state of play and Tesla's launch of the Roadster in 2008 was something of a defining moment. Using lithium-ion batteries, the Roadster could do nearly 400km on a single charge and could go from 0-100km/h in less than 4 seconds. Though not a world-beater in terms of sales - around 2500 were sold worldwide during its 4 years in production - it proved what could be done and made enough of a noise to grab the attention of the industry's big players. Indeed, Bob Lutz, former GM vice chairman said it was Tesla and the Roadster that enabled him to shake GM out of their post-EV1 electric car malaise. That shake-up would, after a number of years of evolution, result in the Chevy Bolt - an all-electric car with a range of 320km and a price of around US$30,000 (AUS$40,000) - which is due to go into production later this year. Today, governments continue to offer incentives to manufacturers and purchasers of electric cars. The German government, for instance, has recently announced consumers will receive €4,000 (AUS$6,000) when they choose an all-electric vehicle. With Tesla and GM soon to launch their affordable all-electric cars; the Nissan Leaf now well-established with 200,000 units sold; and Chinese companies such as BYD emerging with excellent cars while also being, like Tesla, a force in battery research and production, the future is looking pretty rosy for the all-electric car. It's important to note that, although interest in all-electric cars is growing every day, sales represent just a fraction of the global total. Nearly 70 million passenger cars were sold in 2015, of which just 500,000 were plug-in and all-electric. Back in 2008, at the unveiling of the the first production Tesla Roadster, Elon Musk said that his new car amounted to the 'beginning of the beginning' for his company and for his wish to put thousands of all-electric cars on the road in a challenge to petrol power. Now, 8 years later, tens of thousands of Tesla's cars roam the world's roads and, if the interest in the Model 3 is an indication, by year ten there will be hundreds of thousands more.
TESLA RIVALS TESLA HAS MADE its name with the Model S – a vehicle that is luxurious, smart, safe and very quick. ‘At Tesla, we don’t make slow cars,” Elon Musk has said. Tesla’s success has seen a number of companies develop their own very swift, luxury electric vehicles. Here are a few that could give the Tesla a run for its money.
PORSCHE MISSION E With a system power output of over 600 hp (440 kW), Porsche says the Mission E can achieve acceleration of 0 to 100 km/h in under 3.5 seconds. With a claimed range of 500km, the car is charged via an 800-volt charger unit specially developed for it and which can recharge the lithium-ion batteries to 80 per cent of range after just 15 minutes.
RIMAC CONCEPT S A true supercar, the Rimac Concept S packs more than 1300hp of punch from the dual front and rear electric motors. Aerodynamically sharp and with plenty of carbon fibre to keep the weight down, the Concept S can, says Rimac, reach 100km/h in 2.5 seconds, 200km/h in 5.6 seconds and hit a 365km/h top speed.
DS E-TENSE A 402hp beauty, Peugeot/Citroen’s DS brand says the E-Tense is good for 310km range. Manufactured from carbon-fibre with a focus on aerodynamics, the company says the car is capable of 0-100km/h in 4.5 seconds and a top speed of 250km/h.
LEECO LESEE LeEco, a Chinese technology firm that has recently established a working relationship with Aston Martin, has unveiled its LeSEE electric sports car. A top speed of 209km/h has been mentioned for the LeSEE but the really good stuff is inside where it is heavy on technology such as connectivity and autonomous systems – not surprising given the tech background of its creators.
BAIC ARCFOX-7 A beauty from the Beijing Automotive Industry Corporation (BAIC). Powered by a 6.6kWh battery pack connected to 603hp electric motor, the Arcfox-7 can reach 100km/h in less than 3 seconds and go on to a top speed of 260km/h. Range is reportedly 300km. Of course, all-electric cars would have to sell by the tens of millions to replace their petrol-powered cousins, but should sales of the Tesla, the Chevy Bolt and other all-electric cars be somewhere near the hopes of their manufacturers then, to use the words of Winston Churchill to which Musk alluded at the production Roadster unveiling, if it does not signal the beginning of the end for petrol-power, does it signal the end of the beginning? May 2016 Motor Trader | 13
AN EVOLUTION IN ENERGY: SOLAR POWER AND BATTERY STORAGE T HE COST OF energy is a thorn in the side of every business. Businesses need power to operate, but the cost of that power is rising, and understanding the multitude of tariffs, charges and fees which accompany the supply of electricity is tricky. Paul Reynolds and Laurie Bradbrook from Australian All Energy Solutions (AAES) are experts in helping businesses with their energy needs. They have overseen the installation of many solar systems across Queensland and are experts in providing cost-effective solutions. Attention to detail is a mark of their work and they highlight the importance of the 100MWh per annum figure – a figure of electricity usage that many small to medium-sized businesses are close to using each year. It is when a business consumes more than 100MWh that electricity providers consider moving them to the contestable market - a move that can mean a reduction in the cost per kWh, but which is accompanied by a stiffer Supply Charge as well as a peak Demand Charge which is charged in dollars per kW rather than cents per kWh. Paul said it can pay big dividends to use less than 100MWh per year, pay a slightly higher tariff and see big returns through solar. "A business may be paying in the vicinity of 30c average per kWh under their current tariff," said Paul. “If they move to the contestable market, then their price per kWh will come down to, maybe, 10c per kW but their peak demand charge and supply charge will be significant. "A 30 kW solar system will produce approx 50,000 kWh per annum. Under the contestable market, the tariff charge of 10c means solar will produce a saving of $5,000 per year. However, if the business is working on the 30c per kW tariff, that system
14 | Motor Trader May 2016
Jeff and Sarah Thomasen with the Storion battery system installed at their home
“PAUL AND LAURIE
WERE BRILLIANT . . . THEY MADE THE EXPERIENCE VERY EASY FOR US.” would save $15,000 per year." This attention to detail is just part of the AAES philosophy to take a broader view of energy solutions for their customers, and one area AAES is pursuing is battery storage. Storing energy produced from solar, and using it when solar charge is low, offers another way of reducing a customers need for power from the grid. Sarah Thomasen and husband Jeff, owners of JR Automotive in Cairns, recently installed a 6kW battery system at their home, and Sarah is delighted with things so far. “Our battery system started running in mid-April,” she said. “We now have overnight power that was produced and stored during the day and we are thrilled with the system. “It’s terrific, and even if there is a bit
of an initial outlay, we will see a swift return. After all, power is only going to get dearer. “Paul and Laurie were brilliant. They organised the paperwork, dealt with our electricity supplier to make the changes required and they came up for the installation to make sure everything was done. They made the experience very easy for us.” The AAES service doesn’t stop with the installation. After-sales service has always been a hallmark of AAES, and with the Storion battery system that was installed at Sarah’s home – and which is one of the many systems available through AAES – Paul and Laurie can even use a mobile phone App to login to the battery system, check it is working efficiently and, if necessary, tweak the settings. Along with consulting on how to make businesses more efficient through the use of more efficient lighting and other methods, AAES offers business and domestic customers the ultimate energy consulting service. If you have any questions regarding your energy bills, then contact the guys from AAES on 1300 137 227.
Power your BusiNess wiTh solar. CommerCial iNdusTrial agriBusiNess
PV Solutions Solar Hot Water Solar Air Conditioning LED Lighting Power Optimisation Solar Water Pumping
28.5% SAViNG* The Time is Now for BusiNesses To save.
WiThouT SolAr
WiTh SolAr
Is the cost of energy eating into your bottom line? Have you considered offsetting your energy cost with a solar solution? Did you know that you can finance a solar system? Did you know that in many cases, solar systems can become cash flow positive in the first year? With the energy demands on the automotive industry, we are finding that solar systems have a profound impact on reducing grid energy dependency.
BATTERY STORAGE CAN HELP YOU SAVE EVEN MORE.
$17,892 pa
$12,800 pa
Current electricity cost (year)
Savings – $5,089 Finance Repayments (year)
*The above figures are based on a 30kW solar system, financed over 5 years for a SAC Large User tariff classification.
Many Australians have expressed interest in battery storage to reduce their dependence on traditional power companies. Now, battery storage has become a real and affordable option for those seeking to do just that.
Gadi Electrical | Electrical Contractors No. 68790
Proud Supplier to
Australian All Energy Solutions PO Box 6109 Upper Mount Gravatt, QLD 4122 1300 137 227 www.aaes.com.au
DMS 1401080
With a variety of battery manufacturers producing systems for domestic and business use, AAES can help you select the right system for your needs, oversee its installation and, with our after-sales service that is second to none, ensure that the system is always working at peak efficiency.
MAKE: BRITISH MOTOR CORPORATION MODEL: MINI COOPER S YEAR: 1965 ENGINE: 1300CC OWNER: RODNEY HANSEN OWNED: 2008
COOPER'S MIGHTY MINI
W
HEN ALEC ISSIGONIS designed the Mini in 1959, he couldn’t possibly have foreseen the incredible success the tiny car would have (nearly six million of the original Minis were built) or the iconic status that would be bestowed upon it. Designed as a cheap, fuel-efficient car that could fit a family of four and some luggage, the clever space-saving design of the Mini utilised a transverse engine with the gearbox in the sump which, together with front-wheel drive, allowed for a surprising amount of space inside. The engine configuration also allowed for a decent motor to be squeezed into the engine bay, and with a weight of less than 700kg, and 10-inch wheels placed right at the corners, the Mini was quick and handled like a dream. Its excellent abilities were not missed by those with an interest in racing and who could see the potential of the agile little car. Cue the genius that was John Cooper – builder of Formula One cars (Sir Jack Brabham won the 1959 and 1960 F1 titles in Cooper cars) and engineering magician. The resultant Mini Cooper S was an absolute killer on the race track and rally circuit, and Mini Cooper S cars won three Monte Carlo Rallies and the Bathurst 500 in 1966, amongst many other victories. In short, the Mini Cooper S is one of the true icons of automotive history. Rodney Hansen, from Hansen Automotive & Gas in Toowoomba, has owned a piece of that history for the past 8 years in the form of this racing 1965 Mini Cooper S.
16 | Motor Trader May 2016
Rodney worked on and helped build the car for its previous owner. “Warren, the guy who owned it, worked for me,” says Rodney. “And we built it from a standard road car into a sprint-type vehicle and took it to the next level by putting in an alloy half cage, changing the suspension, and putting sway bars in front and rear. We also gave it more power by fitting one of my old 1380cc race engines. We started building a new engine to replace that one when Warren decided to sell the car and, sadly, soon after, he passed away.” The close relationship between Rodney and Warren has ensured the Mini is more than just a piece of classic automotive hardware that’s nice to own. There is a real emotional attachment to the car. “After doing all that work alongside Warren, this car now has a lot of sentimental value,” says Rodney. “It is still called ‘Wok’s car’ after the name we called Warren and, in a way, I do feel as if I am just looking after it.” Which doesn’t mean he won’t throw it around the race track when he can. “I basically run it at the street sprint series," says Rodney. "The Gatton Sprint, Leyburn, the Pittsworth Street Sprints and the Noosa Hill Climb. It’s a lot of fun to drive. However, you’ve got to respect it because of the type of vehicle it is. They are expensive if you have a mishap! I had a smash at the Gatton Sprints and, while I was a bit sore and sorry for a
week, I was MORE sorry that I bent the car.” That crash might have seen the end of the Mini if it were in the hands of someone else but, for Rodney, there was never any thought of doing anything but getting the car back into shape to race again. “That crash was severe, but I couldn’t bring myself to write it off,” he says. “It took about 12 months to get it fixed and I had some amazing help. Graham Goodall repaired the panels and Daniel Fulloon did an awesome job with the paintwork. Street Art Wheels helped with the repair and alignment of the wheels, while CF Performance helped with dyno work." Rodney’s fascination with the Mini, and automotive in general, goes way back. He started early, showing some skills when maintaining the mower he used to earn some coin after school. He would go on to score an apprenticeship at Toowoomba’s TK Motors under the leadership of Tony Kennedy. This would, eventually, lead him to setting up his own business, Hansen’s Automotive and Gas, which offers the full range of workshop services to all automotive customers, Mini owners included. “My first car was a Mini and I did nothing but BMC for 14 years,” says Rodney. “I basically did my apprenticeship on them at TK Motors and I still work on Tony’s Minis today. The Mini has been part of my life for a long time.” And it likely always will be. As well as the 1965 Cooper S, Rodney owns a couple of other rare Minis too. “I have a genuine 1969 Cooper S which we will be
DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER?
restoring,” he says. “And I also have a Contact Jonathan Nash at jonathann@ 2006 R53 Mini. It’s a mtaq.com.au or 07 3237 8721 and let’s genuine Challenge see if we can share your classic Cup car factorywith other members. built by BMW. It’s John Cooper Works enhanced and is left-hand drive and, I think, is the only genuine R53 Challenge Cup car in Australia.” It’s fascinating listening to Rodney talk about the fun to be had from racing the Mini. This is because the other motorsport project he enjoys sits at the other end of the racing spectrum. As a champion drag racer, Rodney has won Winternational titles in the 2014 Supercharged Outlaw series, and it seems odd to compare driving a Mini to the thrills of piloting a drag racing monster to an astonishing 208mph and a 6.58 second quarter-mile time. But, as Rodney says, the key to motor racing of any kind is the thrill, the adrenaline rush. And though the two types of racing in which he excels are radically different, that rush is the same, and completely addictive. “There's alcoholics anonymous and drug rehabilitation,” he says. “But there’s nothing for us adrenaline junkies!” May 2016 Motor Trader | 17
Can you afford not to be in the circle? Advocacy
n Guard Insurance Brokers specialises in insurance and risk management solutions and offers dedicated service to MTAQ members at market leading rates.
e r
OurAuto Tech-Centre is a repair information service offering technical information on more than 90 per cent of passenger vehicles on our roads. Available to MTAQ members at a 20 per cent discount.
s
From offering flexible training options and training programs that reflect the technological developments in the automotive industry, to utilising online and social media channels to communicate, engage and provide services to Members, innovation is at the core of the MTAQ.
t
Innovation
r
MTA Queensland Sir Jack Brabham Automotive Centre of Excellence Address Freeway Office Park, Building 8, 2728 Logan Road, Eight Mile Plains, Queensland, Australia 4113 Training +61 7 3722 3000 Fax +61 7 3844 4488 Email info@mtaq.com.au Website www.mtaq.com.au Postal PO Box 4530 Eight Mile Plains, Queensland, Australia 4113
20150315
⑤
The highly experienced team at Australian All Energy Solutions provide the most cost-effective and comprehensive solar power packages for any business.
a
MTAQ members receive advice and support across a range of issues. From legal advice to business support, from highlighting industry issues to facilitating networking events, the MTAQ is here to support you.
MTAA Superannuation is the industry’s superfund. Our superannuation partner has over 200,000 members who enjoy excellent service and returns.
P
Support
e
④
t
The MTA Institute delivers world-class automotive training at your workshop, at the Institute’s state-of-the-art facility, or a combination of both. It’s the right training, in the right place, in the right way.
The Commonwealth Bank offers members some of the lowest EFTPOS charges in the country. Members have saved thousands with CBA.
a
Training
r
③
Dun and Bradstreet is the nation’s foremost credit control and debt collection agency. Members are eligible for substantial savings on annual subscriptions.
o
MTAQ membership gives you access to a range of services, including technical information, industrial relations advice, promotional material, discounted services from corporate partners and much more.
p
Services
r
②
Capricorn makes it easier for its members buy parts, earn reward points and share in the benefits of being a member of the largest and oldest automotive parts buying cooperatives in Australasia.
o
MTA Queensland actively engages with state and federal governments on automotive industry issues, ensuring members have a voice as the industry continues to evolve.
C
①
Save with our Corporate Partners
ESSENTIALS ESSENTIALS
PAUL KULPA GENERAL MANAGER MTA INSTITUTE
Contents 19 Training GM's Professional Circle perspective 20 Professional Circle training 23 Member matters 27 Member profiles
BOB JANE T MART MARYBOROUGH MORAYFILED SMASH
28 Industrial relations
F
OR THOSE THAT have been involved in the review of the Automotive Training Package (which is the basis of all apprentice/ trainee training), Auto Skills Australia has announced that the AUR (release 3) Automotive Retail, Service and Repair Training Package has been published to the National Register (training.gov.au). As Auto Skills Australia remarked: “This represents a critical milestone in the review of the AUR qualifications to meet the skills needs of the automotive industry while providing greater clarity for training providers, jurisdictions and regulators in implementation. It also completes the transition of the AUR and AUM (Automotive Manufacturing) training packages to the new Standards for Training Packages.” This has been very long and rigorous process and, for the best part, looks to improve the training and delivery to learners with assessments to really test the students understanding of their underpinning skills and knowledge. This can only be a good outcome for industry. For those who don’t know, the training package is the fundamental learning product that has been the
May 2016 Motor Trader | 19
E S S E N T I A L S
MEMBERS MEMBERS
basis of apprenticeship training over the past 20 years. Its development, and ongoing review, is to make sure it can meet the wide variety of jobs a mechanic would do in the workplace. I know this is a pretty hard thing to achieve given the variety of jobs a mechanic has to do on a day-today basis, but it makes sure, as I mentioned before, the fundamentals are covered. The qualifications have over 50% core units (which are compulsory for an apprentice to do), so no matter if an apprentice is in a dealership or a small workshop, these units must be completed. In the end, this is also a good thing as employers can be confident that when they see a qualification it means it meets a minimum industry standard. What you will also begin to notice is greater assessment requirements to be completed before an apprentice/ trainee can be deemed as competent. Our training model allows us to visit your workplace and apprentice regularly to ensure training is completed and understood. This will be reflected in the assessment outcome. We have always ensured our assessment tools meet the requirements of the training package and having the MTA Institute as your training provider will give you confidence your apprentice is competent. Overall, these changes to the training package are a positive step towards ensuring apprentices have a qualification that meets industry requirements. Our commitment to delivering high quality training and assessment will remain and, if anything, will show some deficiencies in other providers in the market that can’t manage the requirements set out in the training package. As with all employers who use MTA Institute, we will keep you posted on the transition to the updated training package.
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
WorldSkills competitors with Axalta reps Kevin Herbert and Geoffrey Stringfellow
MTAI APPRENTICE STRIKES GOLD AT WORLDSKILLS A SHLEY BEUSCHE, AN MTA Institute fourth-year spray painting apprentice with 4H Smash Repairs in Darra, has won a gold medal at the WorldSkills Australia Regional Competition in Vehicle Painting, held on the Gold Coast in April. The 23-year-old endured a full day of intense competition, which included a number of tough assessments, to beat five other gifted young apprentices from the Brisbane area and take the top spot. As a regional gold medallist, Ashley will now move forward to take part in the 2016 WorldSkills Australia National Competition, to be held in Melbourne in October. Another group of apprentices, from the Gold Coast area, also attended on the day, meaning two gold medallists were selected to move on to compete in Melbourne. Jac Urlich, from Miami Smash Repairs won the competition for those from the Gold Coast area. Designed to develop the skills of young people, WorldSkills Australia competitions are held across the country and across a huge range of trades and disciplines, including many of the automotive trades. Regional Competition winners move on to the 20 | Motor Trader May 2016
Ashley Beusche with the WorldSkills Australia Gold Medal
National Competition and, should they win there and meet certain eligibility criteria, can go on to represent Australia in the 44th WorldSkills Competition to take place in Abu Dhabi, UAE, in 2017. For Ashley and Jac, who are both too old to move forward to the International Competition, victory in Melbourne would instead see them eligible to apply for an international BBM study scholarship overseas. Ashley was thrilled with his win and the opportunity the competition gave him to test his skills against other apprentices. “The regional went really well, and I was excited and proud to win,” he said. “I was a bit nervous going in but
confident with the work I did. And I enjoyed it - I wanted to see how I stacked up against other apprentices and wanted to have the opportunity to go further.” The Regional Competition in Vehicle Painting was held at the Axalta Coating Systems Training Centre facility on the Gold Coast and a team from Axalta, including Training Manager Paul Polverino, Qld trainer Kevin Herbert and Qld Technical Consultant Geoffrey Stringfellow, conducted the day-long competition. It was, said Paul, a challenging day for the apprentices, but was part of a wider event that would inspire them. “The WorldSkills competition is something to which young spray painting apprentices can aspire,” said Paul. “And it’s great for their development. Some of them have never been on a plane or traveled before, and when they win a regional they get to go to wherever the national is being held and, if they're lucky enough to win there, then they could go on to take part in the international event.” Paul and his team tested the apprentices across a range skills. “We looked at everything from safety, preparation, attitude, their respect for each other and, of course, their ability
M E M B E R S
MTAIT TRAINER PROFILE
to apply the Standox Waterborne basecoat and VOC Clearcoat along with the design work they were required to mask,” said Paul. “We marked them on those elements, but also the cleanliness of their panels, the application method and how their panel looked, as well as the final finish. It was a big day! “And the standard was high,” he added. “General application of clearcoat and basecoat was very good and the range of scores, from 73 to 81, shows how close things were. In fact, both gold medal winners scored exactly the same on 81. So it was very tight. “To separate everybody, it really came down to the accuracy of measurements and details around the masking of the design they had to make.” The Axalta team also provided
RICHARD JENKINS
2016 WORLDSKILLS AUSTRALIA REGIONAL COMPETITION IN VEHICLE PAINTING, GOLD COAST Ashley Beuchse
Brisbane
Gold Medal
Jayden Diachenko
Brisbane
Silver Medal
Jarrod Hawkes
Brisbane
Bronze Medal
Jac Urlich
Gold Coast Gold Medal
Tyler Phillips
Gold Coast Silver Medal
Mathew Lee Bradstock McCarthy Gold Coast Bronze Medal some post-competition advice to the apprentices, with Qld Axalta Trainer Kevin Herbert giving them insight into the spray painting trade, focusing on elements including the importance of colour, of using a quality pressure gauge and investing in the right type
What is your specialised area? Spray painting and panel work.
What is your background in the industry? Worked in panel shops and have owned a panel shop.
When did you become a trainer for MTA Institute? 2013.
What geographical area do you service? Southeast Queensland.
What is the most satisfying aspect of your role as a trainer for MTA Institute? Sharing my knowledge and helping get more paint and panel people into the trade.
Geoffrey Stringfellow checks out the competitor's work
and number of spray guns. For Ashley, his focus now is on taking what he has learned, the advice he has been given, and the experience he has gained from the Regional Competition and from working in his family’s business, and taking that to Melbourne and the National Competition. “I’ll keep working day to day and doing my usual things, and I think I will go on a few training days,” he said. “It will be exciting to go up against people from around the country in Melbourne. Hopefully, I can win! “I think, if I perform well on the day there’s no reason I can’t win.” All competitors received a Kit Bag with goodies from Axalta worth more than $100 and the Gold Medal winners also received a brand new Sagola Cafè Racer spray gun worth more than $500.
What do you believe is the most important aspect of training? Being hands-on with training.
Why should someone consider a career in the automotive industry? Because it an take you to great heights.
What is the best piece of advice you can give to an apprentice starting out in the industry? Finish what you start and be proud of it.
When you’re not training, what do you like to do? Work on my old car, camping, fishing, trail bike riding, jet skiing and personal development.
May 2016 Motor Trader | 21
E S S E N T I A L S
Gold Medal winners Ashley Beuchse and Jac Urlich with Kevin Herbert and Paul Polverino
Hybrid Electric Vehicle Introductory Course Right training. Right place. Right way.
Course Overview Lucrative opportunities exist for businesses willing to adapt to new market trends. Hybrid Electric Vehicles (HEVs) have arrived and new models are on the way. In just a few years, HEVs will become one of the biggest automotive growth areas in Australia. Mastering the latest technology takes time; it’s complicated and dangerous. Therefore ‘learning on the job’ isn’t an option - leave it to the experts. Delivered by industry professionals, the Hybrid Electric Vehicle Course is designed specifically for automotive repairers wanting to familiarise themselves on HEVs. All the information you need to understand hybrid technology and associated safe working practices will be covered in this basic introductory session. 1. Understand principles of HEV vehicle technology 2. Tools, usage and safety requirements 3. Component identification and location 4. S kills and knowledge required to deactivate and isolate the high voltage supply system in HEV Dates
Cairns 6 June, Townsville 7 June and Mackay 8 June, 2016
Time:
6:00pm to 9:00pm (light refreshments provided from 5:30pm)
Locations: Cairns - Mark Dodge Motoring, 112 Buchan Street, Bungalow QLD Townsville - Supreme Automotive, 31-33 Keane Street, Currajong QLD Mackay - NB Industries, 24 Iridium Drive, Paget QLD Cost:
$352 (Inc GST) for MTAQ members $440 (Inc GST) for non-members
Learner Requirements Automotive trade knowledge is desirable but not mandatory. Tools and relevent equipment will be provided. Standard workshop attire required.
Enrol Should you wish to enrol, or require further information, please contact one of our friendly staff on 3722 3000.
Address Freeway Office Park, Building 8, 2728 Logan Road, Eight Mile Plains, Queensland, Australia 4113 Tel (07) 3722 3000 Toll Free 1800 884 137 Email courses@mtai.edu.au Website mtai.edu.au Postal PO Box 4530 Eight Mile Plains, Queensland, Australia 4113
20150292
MTA Institute Sir Jack Brabham Automotive Centre of Excellence
ECHANIC AND WORKSHOP foreman Terry Smith recently celebrated a 40-year milestone with MTAQ member business, Jim Chaillon’s Auto Service in Townsville. A business landmark in the city, the family-owned workshop was established by the now-retired Jim Chaillon in 1968, in a small shed on Casey Street. Nearly 50 years later and the workshop is still on Casey Street, though the company has grown a bit since then – the thriving business now has six staff on the payroll. Born and bred in Townsville, Terry remembers visiting Jim’s original workshop in the company of his father who would take the family car there for repairs. It was then that he started developing a fascination for all things mechanical. Jim, who picked up on young Terry’s growing passion and curiosity for motorbikes and cars, would eventually put forward an opportunity that would shape his career path for the next 40 years. “Dad put it to me that I should consider doing an apprenticeship,” said Terry. “I was immediately interested because I knew it was something that I wanted to do. Next minute, Jim came round to our house, and asked me, ‘Do you want to be an apprentice?’. I said yes and he gave me a shot.” That was in 1976 and Terry served his apprenticeship under Jim’s watchful gaze. “Jim was extremely pedantic with his work, and that has definitely rubbed off on me,” said Terry. “I can recall him instructing me to pull apart an engine, asking me to clean it and line all the parts up for him to inspect. After I’d done it three times he said, ‘That’s how I want it done every time’.
Left to right: Teresa Chaillon, Dean Hill (back row), Glenn Chaillon, Terry Smith, Natalie Neucom, Jim
TERRY IS PROUD OF THE WORKSHOP’S DEDICATION TOWARDS IMPROVING THE TEAM’S KNOWLEDGE SKILLS, AND INVESTING IN EQUIPPING THE TEAM WITH THE RIGHT TOOLS TO DELIVER ON THEIR COMMITMENTS TO CUSTOMERS. Then we reassembled it.” The business is now owned by Jim’s son Glenn Chaillon, and Terry acts as workshop foreman. Terry is proud of the workshop’s dedication towards improving the team’s knowledge skills, and investing in equipping the team with the right tools to deliver on their
Chaillon, Patrick Smith
commitments to customers. “There have been major changes in the industry,” he said. “And the biggest have been automotive electronics and the changes in pollution regulations. We’re always keeping up to date with the latest technology and completing courses that give us that extra bit of knowledge. That’s what I really enjoy about this industry. It’s constantly changing and there’s always something new to learn.” Glenn, Terry and their team have 70 years of trade experience between them, and their loyalty to the business and their customers, as well as their dedication to providing the very best service, is something that surely makes the business’s founder, Jim Chaillon, exceptionally proud. Based on their ‘Treat our customers as friends and their vehicles as our own’ mantra, the future is looking bright for this innovative workshop. May 2016 Motor Trader | 23
E S S E N T I A L S
TOWNSVILLE MECHANIC CELEBRATES 40 YEARS WITH FAMILY BUSINESS M
M E M B E R S
Member matters
MotorTrades TradesAssociation AssociationofofQueensland Queensland Motor
Division&&District DistrictScheduled ScheduledElections Elections- - E2016/88 E2016/88 Division
ElectionNotice Notice Election
FairWork Work(Registered (RegisteredOrganisations) Organisations)Act Act2009 2009 Fair
Nominationsare arecalled calledfor: for: Nominations QueenslandFarm Farmand andIndustrial IndustrialMachinery MachineryDealers DealersDivision Division Queensland DivisionCommittee CommitteeMember Member(5(5positions) positions) • • Division QueenslandMotor MotorCycle CycleIndustry IndustryDivision Division Queensland DivisionCommittee CommitteeMember Member(5(5positions) positions) • • Division Tyreand andUndercar UndercarDivision DivisionQld Qld Tyre DivisionCommittee CommitteeMember Member(7(7positions) positions) • • Division AustralianAutomobile AutomobileDealers DealersAssociation AssociationQueensland Queensland Australian DivisionCommittee CommitteeMember Member(QLD) (QLD)(7(7positions) positions) • • Division AutomotiveEngineers EngineersDivision Division Automotive DivisionCommittee CommitteeMember Member(10 (10positions) positions) • • Division NationalAuto AutoCollision CollisionAlliance Alliance National DivisionCommittee CommitteeMember Member(8(8positions) positions) • • Division NorthQueensland QueenslandDistrict District North DistrictRepresentative RepresentativeNorth NorthQueensland Queensland(1(1position) position) • • District Nominationsopen openatat12:00 12:00noon noonononTuesday, Tuesday,3 3May May2016. 2016.Written Writtennominations nominationswhich whichcomply comply Nominations withthe theOrganisation’s Organisation’srules rulesmust mustreach reachthe theReturning ReturningOfficer Officernot notlater laterthan than12:00 12:00noon noonon on with Wednesday,1 1June June2016. 2016. Wednesday, Nominationscannot cannotbebewithdrawn withdrawnafter after5:00pm 5:00pmononFriday, Friday,1010June June2016. 2016. Nominations Nominationforms formsare areavailable availableononrequest. request. Nomination Howtotolodge lodgenominations nominations How Bypost: post: Australian AustralianElectoral ElectoralCommission Commission By POBox Box5407 5407ROBINA ROBINATOWN TOWNCENTRE CENTREQLD QLD4230 4230 PO Byfax: fax: By
(07)5635 56359921 9921 (07)
Byhand: hand: Australian AustralianElectoral ElectoralCommission Commission By Shop5001 5001Level Level4,4,Robina RobinaTown TownCentre Centre Shop RobinaTown TownCentre CentreDrDrROBINA ROBINAQLD QLD4226 4226 Robina Byemail: email:AAproperly properlycompleted completednomination nominationform formincluding includingallallnecessary necessarysignatures signaturesand and By attachmentsmay maybebescanned scannedand andsubmitted submittedasasa apdf pdffile filetotogoldcoastareaoffice@aec.gov.au goldcoastareaoffice@aec.gov.au attachments Theballot, ballot,if ifrequired, required,will willopen openononMonday, Monday,2727June June2016 2016and andclose closeatat12:00 12:00noon noononon The Monday,1818July July2016. 2016.Only Onlya aperson personwho whowas wasFinancial FinancialMember Memberonon4 4April April2016 2016may mayvote voteinin Monday, theelection. election.Ballots Ballotswill willbebedecided decidedbybya afirst-past-the first-past-thepost post(simple (simplemajority) majority)system systemofofvoting. voting. the Changedaddress? address?Advise Advisethe theOrganisation Organisationnow. now. Changed Note:AAcopy copyofofthe theAEC’s AEC’selection electionreport reportand andthe theresults resultscan canbebeobtained obtainedfrom fromthe the Note: Organisationororfrom fromthe theReturning ReturningOfficer Officerafter afterthe thecompletion completionofofthe theelection. election. Organisation DerekO'Beirne, O'Beirne,Returning ReturningOfficer Officer Derek Phone:(07) (07)5635 56359903 9903 Phone: May2016 2016 3 3May
Nomination Form Nomination Form Motor Trades Association of Queensland
Division & District Scheduled Elections - E2016/88
Motor Trades Association of Queensland Election Notice Motor Trades Association of Queensland Division & District Scheduled Elections - E2016/88 Fair Work (Registered Organisations) Act -2009E2016/88 Division & District Scheduled Elections
NOTE: Nominations are called for: NOTE: 1. Nominations open at 12:00 noon on Tuesday, 3 May 2016 and must reach the Returning 1. Officer Nominations open at Tuesday, 3 Maynot 2016 and must reach the Returning at the office or 12:00 postal address shownMachinery below, later than 12:00 noon on Queensland Farmnoon and on Industrial Dealers Division Officer at the office or postal address shown below, not later than 12:00 noon on Wednesday, June 2016. • 1 Division Committee Member (5 positions) Wednesday, 1 June 2016. Motor Industry 2. A candidateQueensland may withdraw the Cycle nomination by Division written notice to be received by the 2. Returning A candidate withdraw the 5:00pm nomination by notice2016. to be received by the Officer no later than on Friday, 10 June • may Division Committee Member (5 written positions) Returning Officer no later than 5:00pm on Friday, 10 June 2016. and Undercar Qldfinancial status and any other qualifications 3. ProspectiveTyre candidates shouldDivision verify their 3. required Prospective candidates should verify their status and any other qualifications by•theDivision Organisation’s rulesMember prior tofinancial lodging nominations. Committee (7 positions) required byAustralian the Organisation’s rules prior to lodging nominations. Automobile Dealers Association Queensland • Division Committee Member (QLD) (7 positions) Nomination for the office Nomination forAutomotive the office Engineers Division of: • Division (print shown Committee Member (10 positions) of: name of office as in the name Election Notice) (print of office as shown National Auto Collision Alliance in the Election Notice) • Division Committee Member (8 positions) North Queensland District Candidate’s consent: I, • District Representative North Queensland (1 position)
(Print your nameconsent: as you wish it Candidate’s I, to appear the ballot Consent to nomination for the above office for which I am eligible under (Print youron name as youpaper) wish it open at 12:00 noon Tuesday, 3forMay 2016. office Written whichunder comply toNominations appear on the ballot paper) Consent to nomination the above for nominations which I am eligible the rules.on
with the Organisation’s rules must reach the Returning Officer not later than 12:00 noon on the rules. Salutation: Please indicate preferred salutation, e.g. Mr, Mrs, Miss, Ms Wednesday, 1 June 2016. Salutation: Please indicate preferred salutation, e.g. Mr, Mrs, Miss, Ms Postal address: cannot be withdrawn Nominations after 5:00pm on Friday, 10 June 2016. Postal address: Nomination forms are available on request. Postcode: Postcode: Contact details: Email: How to lodge nominations Contact details: Email: Work ph: Home ph: By post: Australian Electoral Commission Work ph: Home ph: PO Box 5407Mobile ROBINA ph: TOWN CENTRE QLD 4230Fax: Mobile ph: Fax: By fax: (07) 5635 9921 Signature and date: By hand: Electoral Commission Signature andAustralian date: Shop 5001 Level 4, Robina Town Centre Signed: / / NOTE: / / Robina Town Signed: Centre Dr ROBINA QLD 4226 NOTE: • As a candidate you will be sent an acknowledgment by return mail. By A properly nomination form including necessary signatures and • email: As a candidate you completed will be sent an acknowledgment by returnall mail. • It is your responsibility to ensure your nomination received by the Returning Officer attachments may be scanned andthat submitted as a pdfisfile to goldcoastareaoffice@aec.gov.au • Itbefore is your nominations responsibilityclose. to ensure that your nomination is received by the Returning Officer before nominations close.
The ballot, if required, will open on Monday, 27 June 2016 and close at 12:00 noon on How to lodge nominations Monday, 18 July 2016. Only a person who was Financial Member on 4 April 2016 may vote in How to lodge nominations the election. Ballots will be decided by a first-past-the By post: PO Box 5407 ROBINA TOWN CENTRE QLD 4230 post (simple majority) system of voting.
By fax: post: PO5635 Box 9921 5407 ROBINA TOWN CENTRE QLD 4230 By (07) Changed address? Advise the Organisation now. Town Centre Dr ROBINA QLD 4226 By hand: fax: (07) 5635 9921 By Shop 5001 Level 4, Robina Town Centre Robina By email: hand: A Shop 5001completed Level 4, Robina Town form Centre Robinaall Town Centresignatures Dr ROBINA QLD 4226 By properly nomination including necessary and attachments Note: A copy of the AEC’s election report and the results can be obtained from the By email: A properly completed nomination form including all necessary signatures and attachments may be scanned and submitted as a pdf file to goldcoastareaoffice@aec.gov.au Organisation from the Returning Officer after the completion of the election. may be scanned or and submitted as a pdf file to goldcoastareaoffice@aec.gov.au Derek O’Beirne, Returning Officer Derek O'Beirne, Returning Officer Derek O’Beirne, Returning (07) 5635 9903 Phone: (07) 5635 9903Officer (07) 56352016 9903 3 May
Paintless Dent Repair MAY 2 1 & 22 Introductory Course Right training.
Course Overview
Right place.
Paintless Dent Repair, or PDR, is the method by which dents can be removed from the bodywork of a vehicle leaving the original finish and paintwork intact.
Right way.
A wide range of imperfections can be corrected using PDR techniques, though it is most famously used for the repair of hail damaged vehicles.
MTA Institute is running a two-day Fundamentals of Paintless Dent Repair course.
The PDR technician uses special tools, glues and tabs to either push out dents from the underside of the bodywork or pull them out from the exterior of the panel. Specialist lighting and reflection boards and ‘tapping down’ techniques are used to ensure a perfect finish. The PDR industry is experiencing a massive upturn. It is a fast and efficient method for the repair of many imperfections, and skilled technicians are much sought-after in the body repair industry. MTA Institute has partnered with industry-leading company PDR President to offer this course in the fundamentals of Paintless Dent Repair. In this course you will be taught the basic tips and techniques behind the successful practice of paintless dent repair. These include: 1. Metal movements and theory 2. Lighting (fog and line boards) 3. Tool selection 4. Access and leverage 5. Glue pulling Time:
9am to 4pm, lunch included
Location: MTA Institute, Eight Mile Plains Cost:
$1650 per person (Inc GST)
Enrol Should you wish to enrol, or require further information, please contact one of our friendly staff on 3722 3000.
Address Freeway Office Park, Building 8, 2728 Logan Road, Eight Mile Plains, Queensland, Australia 4113 Tel (07) 3722 3000 Toll Free 1800 884 137 Email courses@mtai.edu.au Website mtai.edu.au Postal PO Box 4530 Eight Mile Plains, Queensland, Australia 4113
20150268
MTA Institute Sir Jack Brabham Automotive Centre of Excellence
Good business information and advice.
Being in business at this site for 20 years and growing the business.
What is the best thing about working in your industry? Never the same everyday.
What is the best piece of business advice you have ever given or been given? If you want to be successful don't be a clock watcher.
What would you say to someone thinking about joining MTAQ?
Bob Jane T Mart Maryborough Type of business: Tyre Repairs
How did you hear about the Motor Trades Association of Queensland (MTAQ)?
Number of employees: 6
Via industry courses.
Trading since: 1985
How has being an MTAQ member benefited your business?
Location: Maryborough
MTAQ member since: 1995
Good for advice. Essential for your business.
The support and advice that we can access through MTAQ. Training, support and resources all in the one place.
What has been your proudest business achievement to date? Achieving selected status for RACQ.
What is the best thing about working in your industry? The growth and changes that the industry is currently undergoing.
What is the best piece of business advice you have ever given or been given? Work hard and be kind to your mother.
Morayfiled Smash
What would you say to someone thinking about joining MTAQ?
Type of business: Smash repairs
How did you hear about the Motor Trades Association of Queensland (MTAQ)?
Number of employees: 11
Repairer meeting.
Trading since: 2008
How has being an MTAQ member benefited your business?
Location: Morayfiled
MTAQ member since: 2013
MTAQ has some great resources that small business can access that we are unable to outside of the MTAQ.
May 2016 Motor Trader | 27
E S S E N T I A L S
What has been your proudest business achievement to date?
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 FLEXIBLE ARRANGEMENTS AVAILABLE UNDER MODERN AWARDS
B
OTH AWARDS WHICH have application within the motor industry ie., Clerks Private Sector Award and Vehicle Manufacturing Repair Services and Retail Award, contain a clause titled “Award Flexibility” which allows an employer and employee to vary certain provisions of those awards “to meet the genuine individual needs of the employer and the individual employee.” The award provisions which can be addressed in such an agreement are; • Arrangements for when work is performed; • Overtime rates; • Penalty rates; • Allowances; and • Leave loading. Unlike the enterprise bargaining provisions of the Fair Work Act which provides for the making of enterprise agreements to cover a collective group of employees, the award flexibility clause applies only to individual employees. Again, unlike the requirement for enterprise agreements to be lodged with, and approved by Fair Work Australia, individual award flexibility agreements require only that they be in writing and signed by both the employer and employee and a copy retained with the time and wages records of the employer. An Award Flexibility Agreement
TED KOWALSKI INDUSTRIAL RELATIONS MANAGER
can only be entered into voluntarily and must not leave the employee less well off than if they were paid strictly according to the award. One scenario that could be addressed via such an agreement could be as follows;An employer offers his employee a substantially higher hourly rate than applies in the award on the basis that that rate will include a component to cover, say, tool allowance, annual leave loading, and possibly the overtime rate set out in the award. The employer would need to be able to show that the hourly rate being offered will in fact exceed the gross figure the employee would have received if paid strictly by the award. For example; If paid strictly by the award - Award hourly rate = $20.13/hr for 38 hours = $764.90/wk. Overtime rate of time and a half for, say, 5 hours = $150.98. Tool allowance = $11.38/wk. Total Gross payable under the award= $927.26. Payment under the agreement at, say, a flat $30/hr for 43 hours = $1290. The employee is clearly better off under the agreement. Four weeks annual leave at award rate plus leave loading = $764.90 x 4 + 17.5% = $3595.03. Four weeks annual leave at flat $30/ hr for 4 weeks = $30 x 38 x 4 = $4560. Again, employee clearly better off. If you decide to make use of the award flexibility clause provision you must ensure you follow the procedure spelt out in the clause to the letter otherwise you might find that the agreement could be deemed invalid if challenged.
MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name
Principal/s
Address
Division
Accelerate Auto Electrics & Air-Conditioning Airlie Auto Tech Pty Ltd Browns Plains RWC Emu Park Service Station
Andrew James Ross Port Leonie Bylsma Diana Devine
2/28 Maud Street, MAROOCHYDORE Q 4558 89 Shute Harbour Road, CANNONVALE, Q 4802 17 Tradelink Road, BROWNS PLAINS, Q 4118 38 Pattison Street Emu Park Q 4710
andrew@amae.net.au airlieautotech@gmail.com rwccentre@bigpond.com rdrentals@bigpond.com
AED AED ARD SSCSAQ
28 | Motor Trader May 2016
Investment matters
MARKET WRAP
P
OLITICS DOMINATED GLOBAL news headlines for the month, with the US presidential nominee race being a major talking point. Across the Atlantic, the United Kingdom’s possible exit from the European Union remains a cause of uncertainty for investors. Locally the federal budget has been brought forward as Australian’s look to be headed back to the polls for a double dissolution election. Despite this, it was a strong month for equity markets, with most major equity markets around the globe enjoying solid returns. The S&P/ASX 200 Accumulation Index finished up +4.7% for the month. The Financials sector was particularly strong and responsible for over half of the total return of the index, as the big four banks all delivered good gains. Mining stocks also performed well this month on the back of higher commodity prices, due partly to a softening US$. Iron ore, steel and oil prices all rose through the month and BHP was the strongest of the miners and is now up 20% from its low earlier this year. Over the past 12 months, midcap industrials have significantly outperformed the 20 largest companies on the ASX. The issues affecting the top 20 are twofold. Firstly, at a structural level, the Australian market has traditionally been dominated by groups of large companies that have previously been able to achieve excess returns and profits as a result of reduced competition due to barriers of entry offered from our isolation. Advances in technology have broken down these barriers and allowed other companies to compete. There has already been a drop in the value of large media and retail organisations and a range of other industries such as general
. . . IT WAS A STRONG MONTH FOR EQUITY MARKETS, WITH MOST MAJOR EQUITY MARKETS AROUND THE GLOBE ENJOYING SOLID RETURNS. insurance, telecommunication companies, energy and food retailers are continuing to face increased competitive threats. The second issue affecting the top 20 is cyclical in nature. Resource companies are suffering from lower commodity prices. Despite prices rising in March, they are still well below the heights reached in prior years. The drop in prices is due to a combination of decreased demand, mostly resulting from a slowdown in China, and an oversupply. We expect this to pass when supply levels adjust to the lower levels of demand. Banks are suffering from deterioration in bad debts from the resource space, but this will also pass.
The mid-cap space has seen the emergence of some new companies taking advantage of growth opportunities. Areas such as tourism, education and food and wine exporters are benefiting from a lower A$. Other service sectors exporting their skills into Asia, and technology businesses taking advantage of demand for software as a service, have also done well. Our outlook is that the better growth prospects will continue to come from the mid-cap space. However, for the larger top 20 stocks we believe there will still be opportunities where the issues are cyclical rather than structural. 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.
May 2016 Motor Trader | 29
The hit list
2016
NEW YORK
MOTOR SHOW W
ITH ABOUT ONE million visitors over the course of its 10-day run, the New York Motor Show is one big whopper of an event. Nearly 1000 vehicles were featured, and though last month’s New York event did not
AUDI R8 SPYDER V10 ALWAYS A STRIKING-LOOKING car, the R8 gets a haircut with the Spyder. The open-top high performance car has a lightweight cloth hood that, the company says, will close in 20 seconds at speeds up to 50km/h. With a brute of a 5.2-litre V10 under skin, the Spyder can hit 100km/h in 3.6 seconds on to a top speed of 318km/h. Probably best to have the hood locked in place by then!
have the lashings of supercars, concepts and jaw-dropping machines that were such a mark of this year’s Geneva Show, there was still plenty to keep even the most jaded of petrol-heads happy. Here are just a few of the coolest cars on show this year.
MAZDA MX-5 RF MAZDA UNVEILED THE wonderful convertible MX-5 RF (Retractable Fastback) in New York. The fastback styling is very appealing and the roof can be opened or closed at speeds up to 10km/h and does not impede on boot space. Power comes from the 2-litre and 1.5-litre SKYACTIV-G engines.
CHEVROLET CAMARO LZ1 CHEVY REVEALED ITS 2017 model Camaro, including a drop-top version, and the venerable muscle car is bulging with more vehicular biceps than ever. A 6.2-litre supercharged V8 churning out 640hp nestles beneath the Chevy’s long lines and the company says its has put in plenty of work to ensure its most powerful Camaro ever has performance that is second to none.
30 | Motor Trader May 2016
GENESIS ‘NEW YORK’ CONCEPT A LUXURY SPORTS sedan concept from Hyundai’s premium brand, the ‘New York’ Concept is a real beauty with its striking profile complemented by a 2.0 GDi hybrid powertrain developing 240hp. Bursting with hi-tech features, reports suggest the ‘New York’ Concept will be real challenger to BMW and Mercedes.
LINCOLN NAVIGATOR
NISSAN GT-R THE 2017 MODEL GT-R was another popular exhibit in New York. Nissan’s flagship supercar showed off some sweet new styling and a 20hp power increase – a driver now has 565hp at their disposal from the car’s 3.8-litre twin-turbo V6. The company says the enhancements to the GT-R focused on five areas – exterior design, interior refinement, driving performance, ride comfort and advanced technology. It still looks brutally powerful though.
LINCOLN CAUSED QUITE a stir when it unveiled its Navigator concept. Ford’s luxury division pulled out all the stops with this SUV. Loaded with hi-tech entertainment and safety features, it was the Navigator’s massive gullwing doors and deployable concertina steps that made the most obvious statement. Power comes from a 3.5-litre twinturbo V6 delivering 400hp.
ACURA NSX GT3 RACECAR ACURA TOOK THE wraps off its NSX GT3 racing monster at this year’s Show. Powered by a 3.5-litre twin turbocharged V6, the rear-wheel drive beast has been dressed up in all manner of fancy aerodynamic bodywork but the beauty of the road car is still clear beneath it all. Designed to meet FIA GT3 regulations, the NXS GT3 is expected to start campaigning on US racetracks in 2017.
May 2016 Motor Trader | 31
RTO No: 31529
Right training. Right place. Right way.
Get Your Trade Skills Recognised Do you have trade skills and experience but no formal qualification? Trade Recognition is the process of having your skills and work experience formally assessed against industry and educational requirements for the purpose of gaining a formal trade qualification. MTA Institute offers a Trade Skills Assessment and Gap Training Program for the following qualifications • AUR30312 – Certificate III in Automotive Electrical Technology • AUR30412 – Certificate III in Agricultural Mechanical Technology • AUR30612 – Certificate III in Light Vehicle Mechanical Technology • AUR30812 – Certificate III in Motorcycle Mechanical Technology • AUR31114 – Certificate III in Heavy Commercial Vehicle Mechanical Technology • AUR31212 – Certificate III in Mobile Plant Technology • AUR32112 – Certificate III in Automotive Body Repair Technology
• AUR32412 – Certificate III in Automotive Refinishing Technology
Eligibility Prospective learners must meet the following criteria for eligibility: 1. Be an Australian citizen, a permanent resident living in Queensland, or a Refugee and Humanitarian Visa holder living in Queensland. 2. Be a skilled or experienced individual without a trade qualification, whose experience is such it is a reasonable to assume two thirds of a qualification or more could be achieved through RPL assessment processes in a priority trade. 3. Be 18 years or older. 4. Express a commitment to gaining the entire qualification.
Fees and Charges The majority of this program is funded by the Queensland Government. However, mandatory fees are applicable for the gap training component, based on the
ENROL N OW.
total nominal hours allocated to each unit of competency requiring training to be conducted, ie. $1.60 per nominal hour or, if a concession is applicable, $0.64 per nominal hour. Refer to www.mtai.edu.au for further details. Recognition of Prior Learning (RPL) and/or Credit Transfers (CT) are fee exempt.
Course Length The course length will vary dependent upon the gap training required for individual learners.
Enrol Once an application has been received with all supporting documentation, the MTA Institute will respond within 10 working days. Assessment can be completed either at the MTA Institute’s premises or at the learner’s workplace. For more information contact one of our friendly team members using the contact details below.
MTA Institute
Address Freeway Office Park, Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 Postal PO Box 4530, Eight Mile Plains, Qld 4113 Tel (07) 3722 3000 Toll Free 1800 884 137 Email training@mtai.edu.au Website mtai.edu.au
20150307
Trade Recognition
ENDING J UNE.
Industry insight
QUICK GUIDE TO ‘WORK IN PROGRESS’ AND ITS IMPACT ON WORKING CAPITAL W HEN YOU’RE IN a service business, Work In Progress Days (WIP Days) is a vital number over which you must have control. WIP Days is the number of days, on average, that jobs are in progress prior to invoicing. One way of calculating this measurement is as follows: Days WIP = Total Current WIP/ Direct Costs x Time Period e.g. If you have Current WIP of $1,000,000 and Direct Costs for the year to date of $2,500,000 then the formula would be as follows: $1,000,000/$2,500,000 x 365 = 146 This means that, in this example, the average WIP Days equals 146. That is 146 days, on average, that jobs are in progress prior to invoicing. This is a very sensitive ‘Driver’ in relation to cash-flow and working capital in a business. Any movement upwards in this ‘Driver’ can have severe impact on cash-flow. A large part of working capital in a service business is made up of labour or wages, contractors, materials, services and equipment used on jobs as well as any other costs incurred. I have seen many businesses struggle to manage growth in a service based business due to lack of understanding of WIP Days and its impact on working capital. I recently spoke to one business owner who had massive growth in his business. He couldn’t understand why he was having severe cash-flow problems. It turned out that he hadn’t allowed at all for the extra costs incurred in taking on more jobs. More jobs means more labour to service the jobs, it means more materials and other costs to get the jobs done. If you haven’t allowed for these extra costs or extra
IT DOESN’T MATTER WHAT SYSTEM YOU USE, BUT IF YOUR BUSINESS IS GROWING IT’S VITAL TO HAVE A SYSTEM. A GOOD SYSTEM PROVIDES CONTROL FOR MANAGEMENT. IF YOU ARE TRYING TO MANAGE JOBS IN YOUR HEAD, THEN BUSINESS GROWTH IS GOING TO PROVIDE MASSIVE HEADACHES.
funding to cover them until payment is received, then cash-flow issues will be the result. The other problem with taking on more jobs is that resources get stretched. Not just service delivery resources but also administration resources. When the number of jobs gets bigger its absolutely vital to be on top of the administration. There can be all kinds of reasons why WIP Days can blow out. There are often material delivery delays, misunderstandings about service visits and lost records. The smart way to manage WIP Days is by using a Job Management system. It doesn’t matter what system you use, but if your business is growing it’s vital to have a system. A good system provides control for management. If you are trying to manage jobs in your head, then business growth is going to provide massive headaches. Customers very quickly get annoyed when jobs aren’t completed properly, and this has an impact, not
only on WIP Days, but on payment collection days, which further adds to cash-flow issues. A good job management system should include: • Quotes • Parts and Labour tracking on jobs • Job Cards • Orders • Delivery dockets • Invoicing • Scheduling • WIP reporting. It should also include the ability to compare Quotes versus Actual results on jobs and profitability on each job and type of job. It may seem like a pain to install such a system, but once entrenched into your business the benefits far outweigh the cost. Imagine being in a position where you have all previous job and quote information at your fingertips instead of rifling through paper all the time! A job management system also allows you to analyse the productivity of labour by reporting on labour sold compared to labour paid for. This can be a real eye opener once you start to track and report on it. Many systems also allow you to calculate selling prices of materials based upon the cost price rather than being fixed, and you having to recalculate them all the time. This can make a massive difference to your profit at the end of jobs and remove a lot of hassle, constantly having to keep an eye on cost prices. Go to www.businessnumbersmadeeasy.com for more information.
May 2016 Motor Trader | 33
FINALIST 2016
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.