Motor Trader, November 2014 by MTAQ IT

NOV

2014

85 YEARS ON THE MTAQ MARKS 85 YEARS OF SERVICE MTA QUEENSLAND 2014 ANNUAL REPORT OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

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Contents Official Publication of the Motor Trades Association of Queensland

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 Michelle Chadburn POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Emily Metelmann 07 3237 8784 Facsimile: 07 3844 4488 Email: emilys@mtaq.com.au

EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777

SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually MOTOR TRADER PUBLISHING POLICY Motor Trader is the official publication of the Motor Trades Association of Queensland. The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry. The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.

MTA QUEENSLAND ABN: 74 028 933 848

02 From the editor 04 Policy/Viewpoint

CORPORATE PARTNERS

06 Divisional news

Feature 10 MTAQ REACHES 85 AND IS STILL GOING STRONG News 14 FERRARI BRISBANE LAUNCHES INTO SPACE 20140188

Cover image courtesy of State Library of Queensland.

08 MTA Q&A WAYNE LEONARD: HARLEY MAGIC

16 Members Classic ON THE BUSES: 1957 ROYAL TIGER CUB

MEMBERS ESSENTIALS 19 20 26 29

Training matters MIT SECURES LINK WITH SOUTH KOREAN REGION NADA UNIVERSITY NOW OPEN TO AUSSIE DEALERS Member profiles Industrial relations

31 32 33

Investment matters MARKET WRAP MT's Christmas gift guide Industry insight TIME IS LIMITED… SO LET’S USE IT WISELY November 2014 Motor Trader | 1

From the editor

JONATHAN NASH EDITOR

ELLO AND WELCOME to the November edition of Motor Trader. It has been 85 years since the forebear of the Motor Trades Association of Queensland came into being. On the evening of 30th September, 1929, a group of like-minded businessmen came together to form the Garage and Service Station Proprietors Association, or GASSA. The new Association may have had relatively small beginnings, but its vigorous work in championing members' interests would see it grow beyond the boundaries of the garage and service station arena and into the automotive industry as a whole. Name changes - from Queensland Automobile Chamber of Commerce (QACC) to Queensland Motor Industry Association (QMIA) - would follow over the years, an acknowledgement of its broadening focus, until, in 1986, the name was changed to Motor Trades Association of Queensland and it became the Association you know

today. It's humbling to reflect upon how many wonderfully industrious people have been involved, as both employees and members, with the Association over that long period. Now, as in its previous forms, the MTAQ continues to work passionately on behalf of members, and will continue to do so, we are certain, for at least another 85 years! For more on MTAQ's early years, go to page 10. In our Members Classic feature this month we visit Barrie Watt of Watt Bros., a coach building business that may have the longest relationship with MTAQ of any member - the company was represented at the very first meeting of the Association in 1929. Barrie's classic vehicle is a 1957 British Leyland Royal Tiger Cub bus - a bus that was built by Watt Bros. and which, amazingly, Barrie himself helped to create all those years ago. Take a look on page 16. In our MTQ&A feature we catch up with Wayne Leonard, a motorcycle enthusiast and owner of Wayne Leonards Motorcycles and the Harley Magic Harley-Davidson dealership, both in Cairns. A well known figure in the motorcycle scene in north Queensland, Wayne, with wife Rhonda, have built the successful dealerships up over thirty years and, on top of that achievement, have raised astonishing sums over the years fundraising for the local hospital. Their efforts have raised more than $750,000 for the purchase of medical equipment for the community. Catch up with Wayne's story on page 8. In training news this month, the Australian Automotive Dealer Association (AADA) can report that the NADA University courses, which

have been discussed in previous editions, are now available. Aimed at new car dealerships, the courses - Service Department Operations Management; Sales Operation Management I and Sales Operation Management II - have been tailored especially for the Australian market and represent the the most advanced and comprehensive training packages available to the industry in this country. You can find more information on page 20. Also in training news, the MTAQ has signed a Memorandum of Understanding with South Korea's Daejeon Metropolitan Office of Education. The agreement will see ten students from the Daejeon region complete three months of training for Cert I in Vocational Preparation. Finally, for those of you stuck for Christmas gift ideas our Gift Guide continues on page 32. As with last month's edition, there's some pretty cool stuff to choose from. Thanks for reading. As always, we will endeavour to bring you news and insight into the automotive industry, the most up-to-date information regarding training opportunities. And if you have a story you think is worth telling, want to appear in Member Profiles or have a classic car, bike or truck you would like to see featured, then please don't hesitate to contact me. Cheers,

Jonathan Nash jonathann@mtaq.com.au

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Policy/Viewpoint of Fair Trading has held a series of Information Sessions in regional centres and uploaded one of the sessions to its website. I speak with the Office of Fair Trading on a regular basis. If Members have any issues or queries, now is the time to have them answered. Please let me know - early so that any issues can be sorted before the proposed change-over day - by Monday, December 1 2014. KELLIE DEWAR

POLICY

GENERAL MANAGER MTA QUEENSLAND

Two policy ideas abound that Members should think about and discuss. I’ve asked our three Divisional Executives to raise these at the several divisional industry meetings. The first is the deregulation of trading hours. It stems from the Productivity Commission’s Inquiry Relative Costs of Doing Business in Australia. A key finding particularly applies in Queensland where trading hours have not been deregulated. The recommendation was that trading hours regulations impede the retail industry’s ability to adapt and compete with online competitors, thus requiring a commercial response. My research shows that the National Retail Association has an application before the Queensland Industrial Relations Commission for an amendment of the trading hours - nonexempt shops trading by retail. Our friends, the Chamber of Commerce and Industry Queensland, are strong advocates of deregulated trading hours. Probably this is the beginning of a concerted effort by the major retailers. In the past we have written to the Queensland Government advocating the retention of the current trading hour’s system. At present the Government’s position is that trading hours are not being reviewed. The MTA Queensland’s policy is for retention of the existing system and we have communicated that to the State Government - in writing. The second policy idea is tolling for new roads or a toll for the capital costs of the road network as a whole.

REAK OUT A small bottle of the red cordial! There’s another positive step towards achieving the long-term policy goal of standalone legislation for the remarketing of motor vehicles. As I prepare this Viewpoint, an email arrived in my inbox from the Attorney General and Minister for Justice Jarrod Bleijie. He has advised that, subject to Governor in Council approval, the Motor Vehicle and Chattel Auctioneers Act 2014 will commence on December 1, 2014. The lead time between now and change-over day, will give Members time to adjust their administrative processes and procedures to accommodate the reforms in their systems. It includes the replacing of 14 forms with 3 (three). As said in previous Viewpoints, the Office 4 | Motor Trader November 2014

The Association does not have a policy position and it would be wise to do so to enable our viewpoint to be advocated when necessary. As a road consumer, user pays has its place, but I’m not a fan of the concept of a toll for the capital costs of the road network as a whole. My view is that the Australian Government has the fuel excise measure for that purpose. I look forward to your thinking so that we can develop a policy position.

MVS SUBMISSION Our Motor Vehicle Standards (MVS) Reform submission was submitted by the due date. It referred to the seminal matters to be addressed under the aegis of the Review and issues relevant to MTA Queensland Members. These included parallel imports; extending the motor vehicle standard’s framework’s community protection mantle to include imports of passenger motor vehicle pneumatic tyres; and the effective regulation of the importation of ‘second use’ (second hand) motor vehicles. The issue of the safety specifications of second use motor vehicles (Imported and domestic) was dealt with. We indicated that in Queensland, second hand motor vehicles dealers are required to be licensed and it would be appropriate that ‘commercial’ imports of second use motor vehicles into Australia be undertaken by licensed second use motor vehicle dealers. We submitted that the competence of the motor vehicle standards policy framework should be enhanced to include the capability to set statutory technical specifications and standards across the complete range of motor vehicles and equipment where public and motoring safety is involved. Desirably, this would include performance standard motor vehicle tyres, motorcycles and quad bikes. We suggested that technical issues should be referred to a ‘Technical Committee’ and the MTA Queensland would be pleased to contribute expert resources for this purpose.

REPAIR SECTOR One of the most challenging issues facing the automotive value chain at this time is the ownership and sharing of service and repair information in a fair and reasonable way. Unless the participants in the value chain agree to a set of principles on how to equitably access this information, the Government may intervene to resolve the impasse by imposing a compulsory Code of Practice. It is 23 months since the release of the 2012 Commonwealth Consumer Affairs Advisory Council review. There is prevarication by industry associations in reaching a consensus on the overarching principles to be embedded in the respective Association’s Voluntary Code of Practice relating to the Access to Service and Repair Information for Motor Vehicles. It is time for this matter to be resolved to provide certainty for all repair industry stakeholders particularly the consumers. In the MTA Queensland’s Motor Vehicle Standards Act Review submission I referred to the critical issue of the ownership of vehicle technology data. The view was expressed that this should be clarified in a reformed comprehensive motor vehicle standards policy framework. We went on to say that this information may also include access to Global Positioning System tracking and service history data.

REGIONAL VISIT Disappointingly, the meetings with Members in Emerald were cancelled. This was due largely to the inability of Members to fit these into their schedules. Instead, Divisional Executive Andy O’Hearn visited Members in the Emerald/Longreach/ Clermont area. Like all western regional economies business conditions and consumer sentiment in these centres is difficult. Andy O’Hearn said that across the area as a whole, Members were reporting that business activity was at “an all time low”. In most parts the area is severely affected by drought and the downturn in the local mining industry is strongly contributing to the current difficult economic circumstances.

Hopefully, for the benefit of our members and for industry as a whole, this situation will improve soon. I’m still working on the visit to Townsville. The current plan is to incorporate Townsville into a northern itinerary for early next year. Cairns Members enthusiastically have reminded me of the undertaking for a return meeting. It seems wise to meet with both Townsville and Cairns Members on the same travel schedule.

QUEENSLAND RETAIL LOSS AND CRIME COMMITTEE MTA Queensland has been asked to join the Queensland Loss and Crime Committee as a contributing member to represent the service station sector. The Committee recognised that fuel drive offs and retail theft was an issue for service stations and needed to be addressed with direct information. A comprehensive agenda was under discussion. An interesting insight was that many retailers do not report crime due to the red tape involved and the perceived unlikelihood of not receiving recompense. Recent Queensland Police statistics indicate that there were more than 14,600 reported run-offs in 2013/14, up from just 4469 in 2009/10. Admittedly, this included theft in the service station convenience store, but it is indicative of the extent of “run off and drive offs”. Incidentally there is a direct Policelink number for this purpose. It is 131 444. Drive-offs has been an increasing concern for our SS&CSA Members. The Policelink number established in 2010, largely, was in response to our urgings for action on drive-offs. It is clear more needs to be done and this Committee provides a necessary forum for a coordinated response.

INDUSTRIAL RELATIONS President David Fraser and I attended the Chamber of Commerce of Industry (CCIQ) Round Table to discuss the pending Productivity Commission Inquiry into the Fair Work Act 2008. The prime issue was to determine if there were consistent policy stances across the several Industry Associations to submit a unified Queensland document.

We tabled a paper that highlighted the policy matters applicable to the motor trades. It is clear that there were some workplace relations differences between the various retailers. The CCIQ has undertaken to prepare a document from the various papers tabled from which it will be determined if there is sufficient policy consistency for a unified submission.

AMBRA MEETING Recently the newly elected Chair of the National Auto Collision Alliance Steve Eaton and I attended the Australian Motor Body Repairers Association (AMBRA) meeting in Sydney. The prime issues were the AMBRA shop grading program and its ongoing implementation and compliance matter, and the review of the Code of Conduct for the repair and insurance industries. The response to the Code of Conduct review was finalised with input from participants at the meeting and will be submitted in due course.

ANNUAL MEETING - MTA QUEENSLAND The Annual Meeting of MTA Queensland is to be held on October 31, 2014 in the Association’s board room - that is before the publication of this month’s Motor Trader. Again, I thank our staff for their support and professionalism in ensuring that this meeting proceeds smoothly. I congratulate the continuing Divisional Chairs on their re-election and commitment to their respective division of the motor trades. There is one new incoming Chair and that is for the National Auto Collision Alliance (NACA). The role will be filled by Steve Eaton who is also the Far North Queensland representative. The former NACA Chair Mark Brady stood down to give more time to his business. Mark will retain his involvement with our Institute of Technology. There was a ballot for the position of the North Queensland Representative. The successful candidate was Rod Pether. I congratulate him on his continuing service to the Association in that region. November 2014 Motor Trader | 5

Policy/Viewpoint NEW MOTOR VEHICLE SALES The new motor vehicle market improved slightly in September but was down compared with the same time the previous year. The respected FCAI VFacts for September indicates that for Queensland 18,498 new units were sold, up 1,309 on the previous month of August. Compared with the same month in 2013, new sales increased by 392 or +2.1 per cent. On a year to date basis there have been 168,862 new motor vehicle sales, down -8,121 or -4.6 per cent. Nationally, on a year to date basis, the decline was two per cent. The Australian Bureau of Statistics reflects VFacts’ data. Seasonally adjusted (SA) there were 18,880 new motor vehicle sales in Queensland, an increase of +4.5 per cent compared with the previous month of August. In contrast with September 2013, the SA data shows that there was a small slide of 0.1 per cent. Of interest is the popularity of SUVs, which have been strong in 2014. VFacts indicates that year-to-date sales for these vehicles is up 4.8 per cent compared to the same year-todate period in 2014. In particular, the popularity of the small SUVs continue to rise with sales for the month up 31.1 per cent compared to September 2013, and year-to-date sales up 17.4 per cent compared to the January to September period 2013. Road motorcycles continue to be a popular choice in 2014, with

Australians purchasing 10,744 new road motorcycles in the third quarter of 2014 - bringing the year-to-date total to 32,416. The 32,416 sales represent a 3 per cent increase on September 2013 sales. Nationally 79,548 new motorcycles, all-terrain vehicles (ATVs) and scooters were purchased between January and September 2014; only slightly less (0.8 per cent) than in the same period in 2013. Road motorcycles accounted for 40.8 per cent of the 79,548 sales. Off-road motorcycles accounted for 32.5 per cent of sales, ATVs accounted for 19.6 per cent and scooters accounted for 7.1 per cent.

THE ECONOMY For the 14th month in a row, the Reserve Bank Board, at its October meeting, left the cash rate at the historic low of 2.5 percent. Interest rate stability was enhanced with the annual inflation rate of 2.6 per cent remaining well within the Reserve Bank’s 2 per cent to 3 per cent target range. One of the reasons for this lower inflation rate was the removal of the carbon tax, having the impact of lowering electricity prices by some 5.1 per cent. Business confidence surveys indicate that there is an uplift in trading conditions and business conditions are improving - but slowly. Andy O’Hearn’s report from his discussions with Members in the

Divisional news Ben Chesterfield

ERAQ Once again there isn’t much to report for the engine reconditioning division. There have been no real issues raised in recent times. I would encourage you all to stop and think what is it that is required within this division. We all know this is a specialised division and I am 6 | Motor Trader November 2014

sure that there are issues that we as a combined group face from day to day that could be faced as a whole. The next meeting will be held offsite in late November, so please come along, network with some others, have a listen and have some input.

AED There are always some hot topics within this division and we will be

Central Highlands and further west indicates that business conditions and confidence is very low. Anecdotal information is that this economic circumstance is replicated across many areas reliant on the resources and agricultural sectors. The Westpac Melbourne Institute Index of Consumer Sentiment indicates that consumers are in pessimistic mood. For the eighth consecutive month pessimists have outnumbered the optimists. A possible reason for recent pessimism is the uncertainty in global markets. The fluctuations in the Australian stock market would not have helped. There is some good news. The Australian dollar remains below 90 US cents. It is currently trading at US87.87¢

SMALL BUSINESS HELP The Australian Securities and Investments Commission (ASIC) have produced a series of videos to help business owners use its business names register and other online services. Some of its most popular user guides have been made into tutorials that step customers through common business name transactions. The videos and tutorials build on other ASIC resources recently developed to engage and connect with business, including an ‘ASIC business checks’ smartphone app (refer: 14-157MR). Until next month - To all, take care and stay safe.

with Ben Chesterfield and Ian Cole working hard towards addressing these in the coming weeks and months. As we all know, the latest issue is the Voluntary Code of Practice Access to Service and Repair Information for Motor Vehicles. I have been asking you, our members, on my visits if there are any real problems out there with regard to this matter, and I must say that to date I haven't had any examples.

I would again urge you all to remain positive, keep the lines of communication open and remember without your input we can't achieve the best outcomes. We will be holding our last meeting for the year later this month, and will advise you all of the outcomes from any action items raised at the meeting.

NACA And so it continues. The rapidly changing face of the body repair industry is there for all to see. With the finalisation of some more insurer contracts we are seeing a decline in the number of repairers left to carry out the work. In the light of this there are opportunities for repairers that have not been there before. It is clearly a case of being proactive and deciding whether you see these times an as obstacle or an opportunity. I was in attendance at the Repairer Awards in Sydney last month and it was great to see quite a number of our members take out awards, ranging from enviromental to customer

service as well as best shop. I will cover these awards more in depth in my next newsletter. We are hosting an industry forum on Saturday, November 29. This will be a great day packed full of information and postive ideas for you all so please keep the date free. More information is on the flyer which you should have recieved by now. Our last meeting of the year is to be held later this month and we will be setting some action items to be worked on in the new year, so please, if there is anything that you, the members, think we should be following up on, give me a call, send me an email and remember that united we stand, divided we fall.

Ian Cole

ARD

In contact with members in the past month there seems to be some confusion with the status of the introduction of the Motor Dealers & Chattel Auctioneers Act 2014. At this point there has been no specific date set for the changeover to this act but we are expecting this to

occur later this year. I would like to remind all members of the division that you are required to conduct business according to the Property Agents & Motor Dealers Act 2000 until a definitive starting date for the new act is published. At present there seems to be some confusion regarding Statutory Warranty Class B. The main point to be noted is that at present Statutory Warranty Class B is still current. We will inform all ARD members of the start date of the new act when it becomes available.

TUDQ Thanks to all TUDQ members who volunteered for the subcommittee to provide feedback on the review of the AUR training package for Auto Skills Australia. Thanks for the feedback and suggestions. These will be noted and forwarded to ASA. It is a great sign to see the TUDQ become involved in industry matters and I hope this continues in the future.

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MTA

QA &

MT: What goods and services does Wayne Leonard Motorcycles and Harley Magic provide? The Street 500 - a Learner-Approved bike coming to Australia soon

WL: At Wayne Leonard Motorcycles we sell new Suzuki, Triumph, KTM and now CFMoto bikes, which is a Chinese brand. We sell a full range of motorcycle tyres and we have a workshop with five mechanics. At Harley Magic we sell the Harley range and we can also sort customisation with all genuine Harley parts - fuel tanks, handle bars, carriers, bags, windscreens, even custom paint work. We also have two Harley Master Technicians here and there are only 12 Master Technicians in the whole of Australia, across 51 dealers.

MT: What is your background in the industry?

Wayne Leonard (centre) has been in the motorbike business in Cairns for more than 30 years

WL: I have always been in the sales and business side of things and Iâ&#x20AC;&#x2122;ve been doing that here for 32 years. My wife Rhonda and I bought an existing motorcycle wreckers called 'Bits for Bikes' and in the first 12 months we doubled turnover. We began to sell more new products than second-hand parts so we transitioned from wrecking and parts to all-round motorcycle shop. We had Husqvarna as our first franchise but that was in a very small way. We then got the Kawasaki franchise and, a year after that, the Suzuki franchise.

MT: How did the Harley Magic business come about?

Joel Leonard on an off-road Harley built by the Harley Magic team

WL: Weâ&#x20AC;&#x2122;ve been a Harley-Davidson dealer for 15 years and in November of last year we established the new dealership. Harley insisted we establish that as they have a worldwide plan of having premium dealerships stand alone. The economy has been very poor in Cairns and everybody

Wayne Leonard has been a motorcycling identity in north Queensland for more than 30 years and has grown his company from a small wreckers, run with wife Rhonda, to a two-shop motorcycle dealer business that includes a new Harley-Davidson shop - Harley Magic. thought I had gone absolutely insane when I did it. We bought the old Cairns Hardware building, gutted it and then established new walls, new support beams, everything. It was almost a complete construction and we have actually just won the Master Builder’s Award for 'Best Renovation under $2.5million' for the building.

MT: Who is the average Harley customer and how many of the bikes do you sell? WL: Harley buyers range in age from 35-60 and our customers come from across the region. Harley is trying to seek out the youth market a little bit and in late December we should be receiving the Street 500 which is a Learner-Approved Motorcycle. That will be an opening for us as the Street 500 can go to someone just starting off on a bike. It’s a nice lightweight bike which we can still customise. Our target is 100 bikes for the year. We have been as high as 140 in 2008 but this year our target is 100 and we are on target, which is very good in what are trying times.

MT: North Queensland is suffering, as is much of the State, through a drought. Has it had an effect on the area and your business? WL: The rural sector has been struggling. Places like Forsyth haven’t had decent rain for three years - the paddocks are desolate, the dams are empty and the cattle look very poorly. I feel sorry for the farmers and if they're not going well then they don't need four-wheelers or trail bikes, so that has had an effect on the Wayne Leonards Motorcycles business. But there are other reasons things are slow. Thanks to the internet, people expect us to sell new products at

“WE’VE DONE THE MUSTER FOR 13 YEARS IN A ROW AND LAST YEAR WE HAD 58 PEOPLE ON THE RIDE AND WERE ABLE TO RAISE $72,000.” Brisbane or Sydney prices. But we have higher costs - a freight component and higher fuel costs - that they don’t take into account. The 'War on Bikies' had a detrimental effect too. We know the 'war' had to happen but the police could have been better educated about who was a 'bikie' and who was a 'normal person'. The normal riders felt harassed and people ended up parking their bikes - they couldn’t be bothered with it. However, after 32 years I’ve seen a lot of ups and downs and there is an upside. There is building work in the pipeline here and construction is one of the mainstays of the economy. That will bring a lot of workers into the town who buy motorcycles.

MT: Can you tell me about the HarleyDavidson Rally that visited Cairns this year? WL: The Rally was organised to come to us because we had the new dealership, and about 1500 Harley riders came from around Australia. It was a shot in the arm for us and we have sold about half-a-dozen bikes this year just because local people looked at each during the Rally and said ‘Why haven’t we got one?’ That was pretty good. The riding conditions, the weather and the country roads around the tablelands are wonderful and the people on the rally couldn’t believe how beautiful the place is.

MT: You've been involved in raising money for the local hospital for many years through the Wayne Leonard's Motorcycle Muster. How did that come about? WL: A fellow who worked for the hospital foundation was looking for a way to earn money for the hospital to buy equipment. He came to us and we decided to back it as it is the only community charity that benefits every person in the community. Also, our son survived being born early. He wouldn’t have survived if the hospital didn’t have the right equipment, so we were onside with raising funds. We’ve done the Muster for 13 years in a row and last year had 58 people on the ride and were able to raise $72,000. We bought a mobile scanning machine which has already saved two lives in Cairns that we know of. Last year, we went to Cooktown on the Muster and next year we are going to go to Lucinda which will be a fantastic ride. We’ve raised $750,000 over the 13 years but it's not just about myself and Rhonda - the whole motorcycling community gets behind it.

MT: Are there any other family members involved in the business? WL: Our son Troy is in charge of the Wayne Leonard side of things and our other son, Joel, is in charge of the Harley business. Rhonda and I travel between the two.

MT: What are your plans for the future? WL: I’m concentrating on retiring, so the future is looking very bright! I'll jump on my motorbike and ride off into the sunset with my wife on her bike beside me. It’s funny, we work in motorcycles but we still enjoy it and have a lot of fun going for rides. All these years later we are still enthused. November 2014 Motor Trader | 9

MTAQ REACHES 85 AND It has been 85 years since a group of Brisbane businessmen got together to form GASSA, the Garage and Service Station Proprietors Association, the forerunner of MTAQ

HEN YOU THINK of the year 1929, there is probably one thing that stands out more than most – the Wall Street Stock Market crash. The crash was so severe that it sent the world into an economic depression that would last more than a decade and see millions of people unemployed. And though the crash, and the depression that followed, is popularly remembered as an American phenomenom, Australia was hit too - by 1932 the unemployment rate was 32 per cent. But other things did happen in 1929. Charles Kingsford-Smith continued to make record-breaking flights; Don Bradman scored the first Test century of his dazzling career and Enzo Ferrari founded Scuderia Ferrari, the racing team that would become the foundation of his car company. And also that year, on September 30th, at 8pm, at Exton House in Brisbane, a group of businessmen owners of garages and service stations committed to the e ca. 1920. The 20's saw the motor View of Adelaide Street from Wharf Street Brisban land Queens of Library State ans. Australi y success and development of car become more affordable for everyda their industry - got together to form an organisation that would represent their interests. The name of their new organisation would be the Garage and Service Station Proprietors Association of Queensland (GASSA) - the forerunner of MTAQ. Compared to other

events that year the foundation of GASSA didn't cause much of a stir. The first mention of the new organisation in the press was in the November 24, 1929 edition of Brisbane's Sunday Mail. The article, headlined 'NEW BODY FORMED', makes mention of the association having a 'metropolitan membership of between 70 and 80' and that the 'principal objects of the association, are: • For the mutual protection and advancement of the trade of motor garages and service stations. • For the protection of all matters affecting the welfare of members of the association. • To encourage proper conduct among members. • To promote the consideration and discussion of all questions affecting the trade by affording opportunities for intercourse among members and generally to promote good feeling, and establish a good understanding among them for their mutual benefit. • To affiliate with any other body whose aims and objects are similar to those of this association. • To represent the members of the association in connection with all matters, before the courts of arbitration, both Federal and State, affecting members of the association. To join the new association, requirements stipulated the member be a bona fide motor garage and/ or service station proprietor or his representative approved by the Watt Bros. were represented at the first meeting of GASSA and the company is a member of MTAQ to this day, now run by Barrie Watt

10 | Motor Trader November 2014

IS STILL GOING STRONG Association's council. The first members of that council were P. W. Moran (Cooparoo), J B. Sanders (Breakfast Creek), D. McDonald (Toowong), A. A. Smith (Clayfield), C. S. Fox (city). J. Downing (Woolloongabba), R. McBride (Nundah) and E. W. H. Van Homreigh (Ipswich-road). Mr Moran became the association's first chairman. So why did these men feel it necessary to organise themselves in this manner? One of the initial aims of the new association was, according to records, the registration of garages and motor mechanics - a goal, perhaps, aimed at giving a measure of respectability and trust to an automotive industry that had, by the late '20s, begun to bloom. The car had become a feature of everyday life during the '20s for an ever increasing proportion of the population and the numbers and statistics surrounding that period in the evolution of the industry make for interesting reading. In 1920, there was one car for every 55 people in Australia. By 1929 this had increased to one for every eleven people (by 2013 there were 568 passenger vehicles per 1,000 people slightly better than one car for every two people in the nation). Car prices were falling and vehicles were improving too, with better tyres, better brakes and enclosed bodies. The '20s also saw the growth of motor sport (the Le Mans race was first held in 1923, the Mille Miglia in 1927 and the Monaco GP in 1929) - an activity that further popularised the motor car. In a January 1929 ‘World Motor Census’ conducted by American Automobile magazine, Australia was deemed to have 605,000 vehicles of all kinds (with 76,000 of them in Queensland). These numbers were, as they are today, dwarfed by other western nations - as a comparison, Britain had more than 2 million vehicles, while the United States, which by this time had embraced the mass-production philosophy

of Henry Ford and had been churning out Model T’s for more than two decades, could lay claim to a vehicle fleet of more than 24 million. However, Australia still ranked sixth in the world in terms of vehicle numbers, even though its population was just 6.5 million (Britain's population in 1929 was 40 million while the USA had more than 122 million citizens). By 1929 then, the motor car, once a luxury, had become an item middle class families could afford. And the increased use of cars had a flow-on effect: more cars meant better roads and, across the country, various attempts were made to improve the nation's highways, including the establishment in NSW of the the Main Roads Board (in 1924). It was into this environment that Mr Moran and his colleagues launched GASSA. Their's was an industry on the rise and the leadership of GASSA could clearly see that this burgeoning industry, with a customer base that was growing all the time, required

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edition of The Sunday

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without capital

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successful

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very

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helpful

MELBOURNE.

Melbourne seemed to tegulated traffic, generally and fo-»tpfta»s helping to tion. In narrow streets,

use

foot and

be seen Australian to road

then

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off

move

in are

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before

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dry

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November 2014 Motor Trader | 11

garages

Brisbane '

oil

arduous of his models,

Germany,

cotton

free

the

out

acts

happy when

have the best to one-way traffic to streets a wide, eteeettf lfr«e extent: This makes in.1 avoid driving Sydney somewhat ionges difficult a at first such as for strajiger. Little Little Bourke-street, Sydney, however, etc., is allowed well marke traffic only one standa d with rds A very Way. and other good idea, traffic indicating which could! signs, where followed be well out cars in Brisbane, be may taxi parked, cab ranks,the is injc mark of white ene-way etc. traffic lines on streets In the city streets, tinuation in area con the of traffic the are building kept police very brivers alignment busy of vehicles regulating' traffic, do not but the they line if the traffic this out carry passthe very work is agains signal system at an them t intersection, and their unmistakable. atically, signals are and this-' pedestrians This 'is due no allows the ctosb to fact doubt to without that In obstruction they front are trained of and t Collins^itreet, traffic is

and

the

way

most

1930

very

were

bolts.

material

string

time

toe

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draw to'

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days,

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quarter and then

tive:

spent

streets,

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into

difficulties it

the

problems

leakage

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AH those street wait right

HUGE

have

sums some

order to increasing had to, 'resort

with the'

turns

down

SYDNEY. Enormous

widening

have

vehicles

which are waiting While such cars ing for the. signal the traffic behind withont interruption.

and

so,

around

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studs or

ral

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good

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form of plating existence, was it met of oppos ition, and its good deal of support it

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for

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that towards

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finishes

derived a from the fact that stood, and badly Now, however, all been surmounted, tremend

suburb

places pro motorist, lubricating

for

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with

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grocers' but

other service the exception is claimed by no

has

reaping

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first

been

safety

trained

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month

made owner-driver. cut .down

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these

already

line make chromium

exhibited

realises

been

has

and

past, both

are

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and

studied.

last

one

and

specification

cars

held

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two most maintenance

cleaning

ling

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intersections

minimum,

ticularly The the

and

new

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design

the

maintenance

FORMED

years

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Association

formed

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the

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AFTER

FEATURES

and petrol consideration

WORK

OWNER-DRIVE

made

off with wiped a rag, metal clean. The server official of ob the Royal Automobile of Queensland, Club Mr. A. Jthat Leaver, crankshaft, stated main bearings, ends, and big

the building and do alignments, not attempt to creep wards up to the centre of the intersection. In Melbourne's wido streets a there safety zone is at practically stop tram every the in city,

less

inah, that

leaving

tram white

the

and

start

heavy,

nonstop

(1032

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to 15,000 performance

too!

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pull

days

43'

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mises

choice-

throughout brought to

FOR

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LESS

ENGINE

serious

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were

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'to

best

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standards markin

other where

the

nal-

for

everywhere

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outside

cities,

very

Texaco were

ducts

pedes

not against it andmirable this ad co-ordination allows drivers get off the mark to, without hesitation mediately im they are given the 'go' And sig they move

not taken

referred

(including

Perth

every

ADELAIDE.

Adelaide

traffic-signed

parked,

cities

could

steps

by Adelaide,

traffic

FOUR

the

and

gas of

GAS

arrangements were AVliippet four to the world's non-stop of lubricating oil

the

question received

recently

favour

capital

generally are

one

traffic

Queensland

being practically bane, traffic signs and for everything. as

supplied

When

break

Impressions

capital

DRY

WHIPPET for

methods

various

conferences

said

extensive

facilitate

means.

the

notes

Club

Jones,

the

and

Section

TEST

Jones's

(vice-president)

four

Mr.

notice

following

the

states but

to guide available instance,

automobile

can

each

visited,

help

??=?':

November 24, 1929

comparisons

control

given

Ihe Eoyal Automobile Mr. Geo. Rees

capital,

From

Interesting

trian) are

users.

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OF ?

pedestrian everywhere

£??

Feb 14: Seven gangsters are killed in Chicago during what became known as The St Valentine's Day Massacre.

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Jan 6: Mother Teresa arrives in Calcutta and begins her work amongst India's poorest people.

prominent they are are and erected a great success. signs at each end, marke They served are ob d closely At the entrance 'In' by drivers and 'Out' and trians, with at pedes Pedestrian the exit. the result that traffic is confusion there is in rigidly controlled no intersections. at Adelaide, and of of The timing many the signals the signs ihe in is streets so are for arranged the that, ordina warning with ry guidance luck, of driver and a pedestrians. is able ceed along to ecntleman One Brisbane pro Swanston-str whom eet we without met ing to hav in informed stop Adelaide a* ui a'y intersection, that will during his as arrive he short In the latter at each stay while the cfty is green he had alread showing. fined light 2s been 6d y for The jay walking! regulation «afety crossings j»f Many the traffic for police by the is done pedestrians marked quite oat simply are on and the without streets, any flurry or those similar confusion. marked to in The merely white policeman lets paint Btreet in the Stanley traffic and Grey-s pass treet street along here. one Most for a certain of time, the then and streets the in Adelaide gives turnB, fairly of right are wide, to which way passing traffic facilitate helps alone the greatly cross to traffic. street.' a There pleasure It is to for is watch little a theexcuse ease motorist .with is which ft offending done. agains regulations, the t however, One owing splendid to rule plentiful the in Melbourne very provision of that no traffic vehicle Cris can signs turn notices. and to at the right an intersection across Safety a zone stream traffic. standards of A driver at !t-rpach' the wisning ends are the to 'ap rare made right to over night pulls conspicuous to at by having the Eront ted of left the in huricane vehicles fastened', waiting lamps to* them. over cross to in the direction Motorists he stationary may pass wishes trams, Here to but he turn. has must to «ix not wait miles excee the until d an is hour. signal given for that

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Jan 3: Donald Bradman scores 112 v England at MCG - his first Test century.

CONTINUED PAGE 13

GASSA makes the new

monwealth'white lines roadway

P-

1929: A TIMELINE

Brim Hrtto Send

StgBf

The Motor the Hortheicn

?-?;?;

Full art for

Frc«

?;--:-..

Intormrtioa

TI»S

*«w

Sartpte

STESMWtyH

an experienced eye to keep it organised and give it the respectability it would surely need. The Sunday Mail article makes their intentions clear: 'There are approximately 440 petrol pump locations in the Brisbane City Council area, and of these 120 are commercial pumps — that is, pumps installed for the use of commercial houses running fleets of motor vehicles. Of the others there are, in every suburb, fruiterers and grocers' shops which have a single pump, but these places provide no other service for the motorist, with the exception of lubricating oil. It is claimed by the new association that if the garages and service stations of Brisbane are lifted to a high standard it will benefit all motorists, who will 'consequently get better service' all round. 'High standards and better service' it's a philosophy that still holds true to this day, and it's a philosophy that saw GASSA survive the rough early years of the depression. The Association would, in fact, prosper and continue to grow. During WWII, the Association became known as the Queensland Automobile Chamber of Commerce (QACC), perhaps reflecting a wider remit as the industry continued to expand, and during the war the Association had enough muscle that it could offer its members' skills to the Australian Government for the war effort. Association President W.J. Johnson stated in 1941 that: “There are hundreds of garages throughout this

GASSA members gathered for the 7th annual meeting of the Association - November 30, 1936

state, with machines almost idle, and employing thousands of men, which could be used on war work." The QACC would change its name again in 1976 when it joined forces with the Motor Trades Association to become the Queensland Motor Industry Association (QMIA). The amalgamation of QACC and MTA was lauded as a milestone by then President, T.J. Madill who said: "For the first time in the retail motor industry in Queensland we will have an employer's organisation that represents the complete industry, and one voice that can speak authoritavely for every employer within the industry." By then, the Association had moved into the training industry too, establishing a division that would become the MTA Institute of Technology, a business offering world-class training to automotive

apprentices, and which can now proudly claim to be one of the best and largest Registered Training Organisations (RTO) in the country. In 1986, QMIA members agreed to change the name of the Association once more, this time to Motor Trades Association of Queensland (MTAQ). Today, the MTAQ is a modern, progressive Association working for members in an industry that, perhaps, is on the cusp of change not seen since GASSA's inception. Yet, at its heart, the ideals of the MTAQ remain much the same as they did in 1929. The vehicles may change, the industry may have its ups and downs but the Association, whatever name it is known by, continues to challenge and advocate in the best interests of all its members.

MOTOR TRADER: 80 YEARS IN PRINT In 1934, GASSA began to publish its own magazine – The Garage and Motor Trader. The magazine has gone on to become one of the longest running, continuously published magazines in Australia. Today, of course, it is known as Motor Trader – the very magazine you are reading now. In the very first issue, published in January 1934, the Managing Editor, Arthur H. Smout wrote: “The publication of this first issue of ‘The Garage and Motor Trader’ coincides with the beginning of the what promises to be one of the best years since the commencement of the world 12 | Motor Trader November 2014

economic depression . . . “We shoud all look forward optimistically and with courage to the future. But let this not be taken to mean that we can now afford to sit back or become extravagant, reckless or inattentive to our businesses – a sure way to the bankruptcy court. We must work just as hard now as ever if we intend to succeed . . .” These are words that resonate now as much as they did 80 years ago. The first edition of the magazine was a mix of wonderful stuff – from tune-up data for the 1933 Willys Model 77 (intake and

1929 TIMELINE CONTINUED . . . are forced down 400 km from Wyndham, WA. (They are found on April 16). Apr 4: The dam on the Cascade River in Tasmania bursts after heavy rain, flooding Derby town and tin mines and causing 14 deaths.

Gathering of early model motor vehicles in the bush at Oxley 1930 State Library of Queensland

Buick Tourer at the 1928 Car Dealers Convention Brisbane State Library of Queensland

1927 Chevrolet Roadster parked outside the PersonneReeds Parking Station ca. 1930 State Library of Queensland

May 11: McCormack government defeated in the Qld election and A. E. Moore becomes Premier. Irene Longman, the first woman elected to the Qld parliament, wins the seat of Bulimba. May 16: The first Academy Awards, or Oscars, are held. The film Wings wins Best Picture. Jun 25: President Hoover authorises building of Boulder Dam (Hoover Dam). Sep 28: Collingwood wins the 1929 VFL Grand Final. Collingwood also won every game, home and away, that season. Oct 22: James H Scullin leads Labor to victory in the general election and becomes Australia’s 9th Prime Minister. Oct 24: Black Thursday marks the start of the stock market crash. The Dow Jones falls 12.8 per cent.

exhaust valve seat angle was 45 degrees and operating tappet clearance was .004in for the intake, just in case you were wondering!); motor industry news (British Australian Motors Pty Ltd, well-known agents for Armstrong-Siddely and Rover cars and Albion trucks were reported to have merged their interests with NSW firm Sneddons Motors); information on new car prices (a 4-cylinder Austin 7 Roadster would set you back £218; a Ford Model-Y Roadster £297 and a 6-cylinder Hupmobile Sedan a whopping £765); and carried

adverts that spruiked the benefits of products such as ‘Gasket Cement’, ‘Valve Grinding Compound’ and ‘Dufor Motor Replacement Parts’. It is a remarkable publication. As was the case 80 years ago, the staff of Motor Trader continues to endeavour to bring you industry news, policy information, member features and, perhaps, a little bit of entertainment too. I wonder what the magazine will look like, and what issues we will be reporting . on, in 2094?

Oct 28: The Dow Jones plummets 38.33 pts (13 per cent) to 260.64. Oct 29: The Stock Market crashes on Black Tuesday triggering the Great Depression. Nov 1: Compulsory military training replaced by a voluntary system. Dec 9: Bob Hawke, future Prime Minister of Australia, is born.

November 2014 Motor Trader | 13

News

FERRARI BRISBANE LAUNCHES INTO SPACE Q UEENSLAND HAS A new official Ferrari dealership. Announcing the news at the beginning of October, the new business - Ferrari Brisbane - will be the only official Ferrari sales and service outlet in the state and the company is investing heavily in developing a new showroom to house the dealership as it aims to reach a sales target of 80 new and used models a year by 2019. Though the dealership may be brand new, the people driving it are experienced hands - Managing Director Martin Roller and business partner Marvin Burke have logged plenty of years in the luxury end of the Queensland automotive market while overseeing the Brisbane BMW, Brisbane MINI Garage and Lamborghini Brisbane dealerships. Franco Giammattei, previously Sales Manager at Lamborghini Brisbane heads up the team at Ferrari and is confident of success. “You have people who are very loyal to the brand - who love fast cars, have a passion for fast cars," he said. "A lot of of business will be trade-ins - we find in the high-end market that people tend to change their cars more often. They’ll have one for a year or two and then say ‘Okay, what’s next’."

The Ferrari California T

14 | Motor Trader November 2014

The Ferrari 458 Spider

An all new dedicated showroom is currently under construction to house models from the luxury marque - models which will include the four-wheel drive, four-seater, V12 FF; the V8 458 Spider; and the popular California T. The building will be ready in January 2015 and will, the company says, be the first Ferrari showroom in the region with the all new corporate identity design. However, while the new showroom is being constructed, the company is using an innovative pop-up showroom located at the high-end Space Furniture Store in Brisbane's

Fortitude Valley, and more than 300 guests attended the showroom's official launch in October. "Our launch event was a huge success," said Mr Roller. "Clients were a mix of Ferrari owners, Space clients and our existing VIPs. It was a wonderful opportunity to meet many of the Ferrari owners for the first time and we are looking forward to welcoming them back into our showroom in the future. "The pop up showroom at Space Furniture is a great location as we relaunch Ferrari in Queensland, and we are excited about the new permanent location we will move to in early 2015. "This new state-of-the-art facility will allow us to offer clients all the service you would expect from the Ferrari brand and more.”

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ARRIE WATT HAS been in the coach building business his entire working life. His family goes way back in the business - back to before the formation of the MTAQ, when the Association was known as the Garage and Service Station Proprietors Association (GASSA). In fact, the family business, Watt Bros., has been in the coach building trade since 1920 and was even represented at the very first meeting of GASSA, on September 30, 1929. So it’s not, perhaps, a surprise that Barrie has an interest in classic buses and coaches and now owns several, including this one - a 1957 British Leyland Royal Tiger Cub. That name only really refers to what’s underneath the bus body - the chassis, the engine, the mechanical parts - for the buses and coaches of the period were a blend of the engineering skill of the manufacturer and the creativity of the coach builder. A bare chassis would be delivered by the manufacturer and it was local coach builders, working from their own designs, who would create the coach bodies. This combination of talents resulted in some truly wonderful vehicles. For Barrie, there is a special connection with this particular bus - and with all the classics in his collection. For all of them were designed and built by his family's company. “This bus was built for Duffy’s City Buses in Bundaberg,” he says. “Bus builders had their own designs and Watt Bros.

16 | Motor Trader November 2014

would ask the client what shape they’d like and then build it. When this bus was built, it was the predominant shape of the day." In truth, it wasn't just the body, the shell, that the company built. Back then, Watt Bros. built everything. "They used to do the whole lot," says Barrie. "The panels were rolled in a machine and welded together. The windows, the seats, the bumper bars – pretty much everything was made here." Barrie's connection to the Royal Tiger Cub actually goes even deeper than the involvement of the family company. Back in 1957, he actually had a hand in building it. “I worked on this bus. I painted it!” he says. “I can’t remember exactly what else I might have done to it back then – I might have put the seats in, and the windows too. I served my time as a coach and motor painter but when you worked for Watt Bros. you had to do everything. You’d paint a bus, put panels on, put the floors in, put the seats in, put the lino and rubber in – you had to be versatile.” At the time, the young Barrie probably didn't think the Cub, after a lifetime of service on the roads and highways around Bundaberg, would find its way back home to Brisbane, but Watt Bros.' involvement with the owners, working on and repairing their bus fleet, meant they never lost track of it.

MAKE: BRITISH LEYLAND/WATT BROS. MODEL: 1957 ROYAL TIGER CUB OWNER: BARRIE WATT OWNER SINCE: 1987

“Duffys ran it for thirty years and I bought it back from them," says Barrie. “I was doing the repairs on their other buses, repainting and so on, and they said they had to get rid of it at the end of the year and I bought it.” So, in 1987, the Cub found its way back into the hands of the company, and the man, that had built it. But nostalgia was not the motivation for Barrie buying the Cub. There was a sound, and rather unusual, business case for the purchase. “I used to do a lot of work for Movie World at the time,” he says. “The studios had opened up on the Coast and they used to hire buses from me for the films being made. That’s the main reason I bought it - when they were making 50’s or 60’s era films, they needed vehicles from that era. "This one was used in a few things. There was a film called The Flood, another called Fields of Fire, and it also featured in the Kylie Minogue movie The Delinquents." And it's the movie connection that explains why the Cub was finally restored only a couple of years ago. “The condition wasn’t too bad when I bought it," says Barrie. "I didn’t do anything with it for a while because, in a slightly dilapidated state, they fitted into the films better. If you had a restored bus, people watching the movie would know that it was a ‘fake’.”

DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER? Contact Jonathan Nash at jonathann@ mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members. And so restoring the Cub only began in earnest when the film work began to slow down. "That was about five years ago," says Barrie. "We put it into the workshop here and worked on it inbetween jobs. "We finally got it finished a couple of years ago," he adds. "We had to replace some of the wood framework, and some of the panels on the outside were a bit rusty and, of course we had to give it a complete repaint back to the original colours too." "I painted it when it was new and now I've done it all over again!” November 2014 Motor Trader | 17

2015 Retail Motor Trade Diary THIS QUALITY DIARY FEATURES: ✷ Professional design complete with gold corners and stitched spine backing ✷ Important telephone numbers and contact details ✷ 30 minute per day time slots ✷ Day by day planning

Member’s price $22 (GST inclusive) plus postage and handling. Non Member’s price $25 (GST inclusive) plus postage and handling. TO ORDER: Just fax this completed form back to MDocs at MTA-Q on (07) 3844 4488, OR email mdocs@mtaq.com.au Please supply: ____ copies of the 2015 Motor Trade’s Diary at TOTAL $

(Plus postage and handling)

Company Name: Address: Postcode: Phone: (

)

Fax: (

Contact Name:

)

Date:

MTA-Q Member: Membership number/Account number: Capricorn Account number: Please bill to my account OR see payment details below Method of Payment: Cheque (Payable to MTAQ) / MasterCard / Visa Card Number: __ __ __ __/ __ __ __ __/ __ __ __ __/ __ __ __ __/

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Signature:

MTA Queensland Address Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 Postal PO Box 4530 Eight Mile Plains Qld 4113 Tel (07) 3237 8777 Toll Free 1800 177 951

20120033

Name on Card:

CVN: __ __ __ /

ESSENTIALS Contents 19 Training matters 26 Member profiles

BITTKAU AUTO CARE KINGAROY BRAKE RADIATOR AND MECHANICAL SERVICES PAULGER ENGINEERING

28 Industrial relations

Manager Anthony Bonaccorso began a series of meetings with Smart Education Training Australia (SETA), a leading education and training consultancy based in Brisbane which assists international students planning to study in Australia. The course took some months to design and prepare and, said Mr Bonaccorso, will take in more than just automotive training. "The students will gain Cert I in Vocational Preparation in Light Vehicle Automotive and cover 8 units of competency," he said. "But during the program we will take them out on excursions so they can engage with the industry on a social level and also show them some Australian heritage and culture along the way. Elements such as these will all be part of the program." MTA Strategic Director Steve Ghost signed the MOU on behalf of MTAQ and said there was plenty of scope for cooperation between the participants into the future. "We are sure this program will be well received," he said. "And hopefully it will be the start of a long-term relationship with the Daejeon region, SETA and other organisations in Korea."

Steve Ghost, Managing Director of Strategic Operations for MTAQ, and Taeksoo Kwon from the Daejeon Metropolitan Office of Education with copies of the Memorandum of Understanding

November 2014 Motor Trader | 19

E S S E N T I A L S

MEMBERS

TAQ ENTERTAINED SOME VIP guests in October as delegates from the South Korean region of Daejong came to the Sir Jack Brabham Institute of Excellence to take a tour of the facility and to sign a Memorandum of Understanding (MOU). The MOU officially recognises that the MTA Institute of Technology (MIT) will undertake the training of ten South Korean students in a specially designed course on basic automotive technology. The ten students, all 18 years old, have already been in Australia for a month, taking part in the first part of the course - a four week intensive English language training program. This is followed by a four week practical and theoretical program, run at the MIT workshop at the Sir Jack Brabham Automotive Centre of Excellence. Following the successful completion of that part of the course, the students will be split into pairs and have one month of work experience training at the various workshops of the multi-franchise Bryan Byrt Group. The groundwork for organising the course began at the beginning of the year when MIT Business Development

M E M B E R S

MIT SECURES LINK WITH SOUTH KOREAN REGION M

NADA UNIVERSITY NOW OPEN TO AUSSIE DEALERS

M E M B E R S

E S S E N T I A L S

Training matters

With the launch of NADA University courses in Australia, dealerships have the chance to be part of an education revolution - using the world's best resources tailored to the Australian business environment. It's an opportunity not to be missed.

USTRALIAN NEW CAR dealers now have the opportunity to take their business, and their staff, to a whole new level of performance. The Australian Automotive Dealer Association (AADA) has announced that preparations for the delivery of NADA University courses are now complete and the programs will commence in February 2015. The three NADA University courses that will initally be available, and which offer participants certification of achievement, are Service Department Operations Management; Sales Operation Management I and Sales Operation Management II, and each 20 | Motor Trader November 2014

have been specially tailored to the Australian market and represent the most advanced and comprehensive training packages available to the industry in this country. There will be nowhere else in Australia where Dealers can improve their skills and knowledge in dealership management to such a degree. The launch of the course programs is the culmination of many months of work by AADA executives, representatives of NADA, and the accredited course provider in Australia, the MTA Institute of Technology (MIT). "NADA University is another step in the AADAâ&#x20AC;&#x2122;s plan to offer Dealers the greatest chance at business success,"

said AADA CEO Patrick Tessier. "This is a very positive move for the industry." The deal to bring the NADA courses to Australia was formalised at a ceremonial signing ceremony at the AADA Convention in July. The NADA representative was Jim Phillips, the Director of Custom Education Delivery at NADA Dealer Academy, who has been deeply involved in developing the courses for the Australian market. During September, Mr Phillips was a guest of MTA Institute of Technology, working with the Australian training consultants who will be delivering the courses here. The four consultants, Â&#x201E;

SERVICE DEPARTMENT OPERATIONS MANAGEMENT

SALES OPERATION MANAGEMENT II

DESIGNED FOR . . . • Shop foreman • Service Managers • General Managers • Dealer Principals • Service Advisors • Fixed Operation Managers

DESIGNED FOR . . . • Sales Managers • Assistant Sales Managers • General Sales Managers • General Managers • Dealer Principals

Upon completion of the course, participants will be able to accurately:

• Evaluate sales, growth, and profits to recognise areas in need of improvement to increase departmental/dealership profitability. • List the factors in Tech proficiency and explain how to improve Tech performance. • Determine a monthly forecast and monthly review using NADA profiles to oversee production ability. • Prepare a RO survey to measure the performance indicators to determine opportunity in the service department. • Prepare a best practice for “walk-around” procedures in order to create the most effective way to greet, up-sell, and build rapport with customers. • Analyse shop production models and scheduling methods to identify opportunities for operational and profit improvements.

• Distinguish the dealership’s stated vision from their actual practices through creative evaluation of sales units, sales dollars, and gross. • Determine the sales, expense, and gross profit in the new, used, and F&I profit centres, and compare them to NADA Guides. • Interpret the effects of vehicle inventory management in order to increase overall dealership profitability. • Recognise the controllable variable expenses relative to gross profit earned to improve expense controls. • Determine used vehicle operation parameters to determine Used Vehicle Department profitability. • Evaluate and apply problem solving skills through a scenario-based consulting exercise to provide customised action plans that address their unique challenges.

• Illustrate and analyse management structure to determine which structure is best for a dealership. • Compare and contrast the difference between negotiating techniques in order to identify areas of improvement. • Recognise the elements of retail finance transaction terminology and how it relates to leasing terminology. • Utilise a checklist of the necessary sales consultant aptitudes and efforts in order to determine coaching opportunities for improved performance. • Differentiate used vehicle pricing and stocking strategies and their effect on the “efficient” market in order to recommend improvements. • Evaluate and confidently recommend improvements of the used vehicle operation through a comprehensive case study.

COURSE AIMS:

• Maximise customer retention • Maximise profits • Take your business back from the independents • List the factors in Tech proficiency and explain how to improve tech performance • Prepare an RO survey to measure the performance indicators to determine opportunity in the service dept • Analyse shop production models and scheduling methods to identify opportunities for operational and profit improvements

• Complete evaluation of sales and F&I profitability • Have more thorough expense controls • Have a specific plan for sales growth • Management focus on bottom line profits

• To evaluate the entire structure of the sales operations • To increase retention in your dealership • Managers to be better coaches • To hold better and more energetic sales meetings • Increase accountability at all levels

November 2014 Motor Trader | 21

E S S E N T I A L S

SALES OPERATION MANAGEMENT I

M E M B E R S

THE COURSES

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

Training matters

Jim Phillips (fourth from left) with the NADA-accredited consultants - (Left to Right) Alan Kennedy, Kim Haywood, Paul Goldie, and Rob Mackenzie - who will be delivering the courses throughout Australia.

all highly-experienced, NADAaccredited, industry professionals, will provide the courses in different regions of the country. The team worked first on the Service Operations Management course. "The courses we are running in Australia are modified versions of our courses," said Mr Phillips. "But there were very few changes in the core of our content that we had to adapt to the Australian market. The core competencies are very similar. "For instance, at the NADA Academy, the Service Operations Course is a five-day course but we have developed a three-day course here. It is an intense course - a 'How to' on how to run service operations - and we have left out nothing. "We talk about receivables, collecting money, financial statements, sales, gross, expense, forecasting, staffing, pay plans, and then, at the end, we take everything we have taught and apply the potential remedies to a case study. 22 | Motor Trader November 2014

“THERE IS NO ONE WHO WILL LEAVE THIS COURSE WITHOUT APPLYING SOMETHING TO THEIR OWN DEALERSHIP. IF YOU TAKE THE COURSES, YOU WILL GET BETTER.” "What we're trying to get is 'critical thinking' and that means applying the knowledge. It's not just a case of 'Here's how to do it', it's 'Think about what you would do to fix this'. And if you can think about what you would do to fix the case study, then you can think about how you can fix your own service department at your own dealership." "There's no one who will leave this course without applying something to their own dealership. If you take the courses, you will get better." The intensive Operations course

will, said Mr Phillips, inspire Dealerships to recognise opportunities for business development. "A participant will not only see where they can do more, but they will be shown how they can do more," he said. "There are a lot of people who say 'Well, I know I can do more, but I just don't know how.' This course identifies opportunity and shows you how to retain customers, how to satisfy customers and how to get everybody in on it. "We will hurl ideas at you, and they come a mile a minute. It's not like you'll have a couple of ideas - you'll be thinking about which one you want to implement first because there will be so many." The NADA courses are some of the most respected in the world and in the US they provide the automotive and truck industry with the most comprehensive source of education and training, including invaluable skills in dealership management and profit building.

M E M B E R S

COURSE DETAILS LOCATIONS

COURSES WILL BE HELD IN SYDNEY, MELBOURNE, HOBART, ADELAIDE, PERTH, CANBERRA, DARWIN AND BRISBANE ON THE DATES BELOW Locations to be determined according to the number of course participants SERVICE DEPARTMENT OPERATIONS MANAGEMENT February 2015 2nd to 4th February 9th to 11th February

March 2015 2nd to 4th March 9th to 11th March

April 2015 13th to 15th April 20th to 22nd April

SALES OPERATION MANAGEMENT I February 2015 5th to 6th February 12th to 13th February

April 2015 16th to 17th April 23rd to 24th April

SALES OPERATION MANAGEMENT II March 2015 5th to 6th March 12th to 13th March

COST: THREE-DAY SERVICE DEPARTMENT OPERATIONS MANAGEMENT $3850* TWO-DAY SALES OPERATION MANAGEMENT I $1650* TWO-DAY SALES OPERATION MANAGEMENT II $1870* *Inc. GST Includes refreshments and all course material.

GO TO WWW.AADA.ASN.AU FOR MORE INFORMATION November 2014 Motor Trader | 23

E S S E N T I A L S

Brisbane

THE CONSULTANTS ALAN KENNEDY TRAINING CONSULTANT for NSW, ACT and NEW ZEALAND

M E M B E R S

E S S E N T I A L S

Training matters

“WE WILL HURL IDEAS AT YOU, AND THEY COME A MILE A MINUTE. IT'S NOT LIKE YOU'LL HAVE A COUPLE OF IDEAS - YOU'LL BE THINKING ABOUT WHICH ONE YOU WANT TO IMPLEMENT FIRST BECAUSE THERE WILL BE SO MANY.” Through developments such as its university, NADA enjoys a membership rate of more than 90 per cent from almost 16,000 new car and truck Dealers, with 32,500 domestic and international franchises. Australia will be the first Englishspeaking region outside of the United States where the courses will be delivered. It is a development that is exciting both to AADA and to NADA. "We have licensed our content in different languages but, until now, all courses taught in English have been taught by a NADA instructor," said Mr Phillips." "This is the first time that we have licensed our content out to instructors in English. "It's relatively monumental for NADA. It may not seem so but it's 24 | Motor Trader November 2014

a first. NADA has had a special relationship with the AADA for a long time and I think the relationship we have with the leadership of AADA, and the people associated with AADA, gives NADA comfort in doing this. "We are excited about it and excited by the opportunities here. I think we are just scratching the surface with these courses and I think it is going to be wildly successful." For the AADA too, bringing the courses to Australia is an exciting development - the partnership with NADA is a key development for the Association. "This is what an Association should be doing - bringing to its members systems and programs that are designed at improving profitability and the skills of staff that choose to work in the car industry," said Mr Tessier. "NADA University is another step in the AADA’s plan to offer Dealers the greatest chance at business success." "Bringing NADA University to Australia will become just one of many exciting collaborative efforts between the two Associations." For more information about NADA University and the courses now available, go to www.aada.asn.au or email courses@aada.asn.au

What is your background in the automotive industry? Dealer Retail Operations, Manufacturer Sales Operations and Strategic Planning. What do you see as the biggest problem facing dealerships today? • Achievement of their brands' objectives in a congested marketplace and addressing erosion of sales gross and the Dealerships falling return on investment. • The likelihood of F&I income being restricted as an outcome of the ASIC enquiry into finance income and commissions. • Secondhand imports potentially robbing new car franchises of used car business and other related income. • The threat from unauthorised Dealers eroding Service and Parts. What benefits will there be for Dealership team members who take the AADA/NADA courses? Improves overall staff effectiveness. Having an effective team means you can minimise head count, reduce overheads and drive stronger gross. How will the AADA/NADA courses benefit the Dealership business itself? Well-trained productive employees results in less staff churn, higher levels of customer satisfaction and improved Dealership profitability. Why is it important for Dealerships to support their team by offering such comprehensive training programs? To ensure teams are correctly trained. Achievement of the AADA/NADA training accreditation sends a powerful message to customers that they are dealing with an organisation that is committed to it’s employees and offering strong levels of customer service. What is the most satisfying aspect of providing the training to Dealerships? To the see the Dealership prosper and the growth in team members confidence and skills.

TRAINING CONSULTANT for QUEENSLAND and NT

TRAINING CONSULTANT for VICTORIA, SOUTH AUSTRALIA and TASMANIA

TRAINING CONSULTANT for QUEENSLAND, WA and NT

What is your background in the automotive industry? 35 years experience with roles from Sales Manager through to Dealer Principal/ General Manager across the spectrum from basic used vehicles through to luxury dealerships. Also spent time as Regional Manager for Daimler Chrysler so I have an in-depth understanding of both sides of the Automotive Business - Retail and Wholesale. In what geographical area will you be providing the AADA/NADA training? Queensland and wherever required. What do you see as the biggest problem facing dealerships today? Dealerships are so busy they do not take the time to step back and understand the business they are in - providing quality service and making a commercially acceptable profit. Also, having the right people for the right job. Training is paramount. What benefits will there be for Dealership team members who take the AADA/NADA courses? The courses will break down each component and explain how important a role they play and show how easy it is to correct beliefs they were doing the best possible job in the best possible way. How will the AADA/NADA courses benefit the Dealership business itself? These courses show accountability and, therefore, even Dealer Principals will have a better understanding of how to measure their business and move it to the next level. Why is it important for Dealerships to support their team by offering such comprehensive training programs? Participants have seen a marked improvement in performance and profitability, a renewed vigor amongst staff and a lift in customer retention and satisfaction. What is the most satisfying aspect of providing the training to Dealerships? When participants see even small changes can make a huge difference to not only their income and that of the dealership but also to their job satisfaction.

What is your background in the automotive industry? Worked in the industry since 1974, initially in South Africa as a diesel mechanic. Was MD and Dealer Principal for a Mercedes Dealership and, in 1999, became Country Manager for Mitac consulting. Moved to Australia in 2008 and bought into APD Australia. Ran Kia and Jeep Dealerships before forming Linro & Associates in 2014. What do you see as the biggest problem facing dealerships today? Very thin margins, pressure from distribution companies to increase volumes and consequently, the high cost of inadequately trained staff. This in turn causes the public to have a poor perception of Automotive Dealers and their staff. What benefits will there be for Dealership team members who take the AADA/NADA courses? Better management skills, AADA/ NADA Accreditation, improved levels of professionalism and greater job satisfaction. How will the AADA/NADA courses benefit the Dealership business itself? Improved bottom line performance, staff and facility utilisation. Better customer retention and satisfaction. Contented staff with improved staff turnover. Why is it important for Dealerships to support their team by offering such comprehensive training programs? By providing this kind of training and support, it gives staff improved job satisfaction and security in an industry which is facing considerable distress at present. Staff turnover will improve and dealerships can concentrate on improved customer satisfaction, customer referrals, retention and profitability. What is the most satisfying aspect of providing the training to Dealerships? Watching the “lights come on” when participants see the benefits of following the correct process. To hear dealers raving about the improvements they have made in their business.

What is your background in the automotive industry? 25 years experience in the automotive industry, working across multiple brands for the family business in WA. Following completion of a Heavy Vehicle Diesel Mechanic Apprenticeship, I progressed through roles including Fixed Operations Manager and, later, Dealer Principal for a Mercedes-Benz franchise, while also completing a Certificate IV in Training and Assessment. In Queensland, I established a luxury brand wholesale business and have continued to pursue my passion for training. In what geographical area will you be providing the AADA/NADA training? Queensland, WA and NT. What do you see as the biggest problem facing dealerships today? To name one, I would say 'profit'. Buyers who compare products and don't show brand loyalty are eroding margins. Dealers must invest in training staff to the highest level in product knowledge and customer service. What benefits will there be for Dealership team members who take the AADA/NADA courses? The knowledge participants gain will give them a holistic understanding of the costs associated with operating a Dealership and the behaviours that lead to improved performance. How will the AADA/NADA courses benefit the Dealership business itself? Staff that can understand their contribution will not only ensure the profitability of their employer, but that they can also gain by implementing proven teachings. Why is it important for Dealerships to support their team by offering such comprehensive training programs? I refer to the quote by Richard Branson: “Train people well enough so they can leave, treat them well enough so they don’t want to”. What is the most satisfying aspect of providing the training to Dealerships? To pass on knowledge to a willing participant so they can return with the confidence to improve their workplace practice.

PAUL GOLDIE

E S S E N T I A L S

ROBERT MACKENZIE

M E M B E R S

KIM HAYWOOD

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

Member profiles

Bittkau Auto Care

Kingaroy Brake Radiator and Mechanical Services

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

What is the best thing about working in your industry?

Industry publications.

Location: 29 King Street, Kingaroy

How has being an MTAQ members benefited your business?

Definitely our customers, our suppliers and the variety of work and services we provide.

Type of Business: Mechanical, brake and radiator repairs. Number of employees: 4 Trading since: 2005 MTAQ member since: 2005

Paulger Engineering

26 | Motor Trader November 2014

Keeping us updated on news and other relevant information.

What has been your proudest business achievement to date? Building and growing the business to what it has become today.

What is the best piece of advice you have ever given or been given? Equipped with the right tools thereâ&#x20AC;&#x2122;s nothing you cannot achieve.

What would you say to someone thinking about joining MTAQ? Donâ&#x20AC;&#x2122;t hesitate. Just do it.

Type of Business: Auto electrical and mechanical Number of employees: 2 Trading since: 2009 MTAQ member since: 2011

What is the best thing about working in your industry?

Word of mouth.

Meeting people and doing the best possible job for them.

How has being an MTAQ members benefited your business? Support and advice. Knowledge base.

What has been your proudest business achievement to date? Growing and developing our business from scratch and providing great service to our many repeat customers.

What is the best piece of advice you have ever given or been given? Listen to and respect your customers.

What would you say to someone thinking about joining MTAQ? Itâ&#x20AC;&#x2122;s a great support in the auto industry.

Kingaroy Brake Radiator and Mechanical Services

Paulger Engineering Location: 13 Pioneer Road, Yandina

How did you hear about the Motor Trades Association of Queensland (MTAQ)? At networking events.

Type of Business: Motor body builders and general engineering

How has being an MTAQ members benefited your business?

Number of employees: 16

A huge benefit with advice and knowledge for staffing, legal advice and general business operational queries.

Trading since: 1984 MTAQ member since: 2005

What has been your proudest business achievement to date? We have been trading for 30 years and ridden out the highs and lows in the economy when others have failed.

What is the best thing about working in your industry?

As a manufacturer, seeing a completed product work and perform the way we expected and see the customer satisfaction of a quality product.

What is the best piece of advice you have ever given or been given? Do not underestimate your ability or product. If you aim high you can achieve the goal. Never try to complete with a lesser standard of product.

What would you say to someone thinking about joining MTAQ? I would highly recommend MTAQ as a huge benefit to any business in this industry as they are a proven support organisation.

November 2014 Motor Trader | 27

E S S E N T I A L S

Location: 5/47 Wises Road, Maroochydore

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

M E M B E R S

Bittkau Auto Care

MIT T R AINER PROFILE

PAUL TUGWELL

managed an RACQ garage which included mechanical and electrics. Did my advanced at Bald Hills TAFE, and Associate diploma in applied science at Qld University. Have completed two thirds of my teaching degree - I will finish one day! Have taken numerous courses to keep up to date. My specialty is Hybrid vehicles.

When did you become a trainer for MTA Institute of Technology? 2004.

What geographical area do you service? What is your specialised area? Electrical, Electronics.

What is your background in the automotive industry? Started (1966) in England at a Ford distribution garage. Apprentice in Automotive engineering, transferred to Wollongong, finished my apprenticeship, and did post trade courses for another year. Moved to Qld in 1971 and

Mainly Brisbane, I also go to Kingaroy and to Pomona, Gympie.

What is the most satisfying aspect of your role as a trainer for MTA Institute of Technology? Taking students that have a dream and fulfilling that dream for them.

What do you believe is the most important aspect of training? Understand your students, when you do

INSTRUMENT REPAIR AND RESTORATION LIONEL OTTO INSTRUMENTS has been servicing the automotive industry for over 40 years. Our level of service is second to none. We take pride in restoring your instruments to showroom condition and revel in the challenge of a “basket case”. • • • • • • •

Odometer setting on new clusters (proof of mileage required) Repair of digital clusters Service and restoration of all classic instruments Ratio boxes, speedo and tacho cables made to order Pixel and LCD screen repairs Repair of fuel tank sender units Our repairs offer a viable alternative to having to buy a second hand item or expensive new item

LIONEL OTTO INSTRUMENTS Contact: John Robertson P: 07 3277 3888 F: 07 3277 8520 E: info@ottoinstruments.com.au 124 Evans Rd, P.O. Box 9, Salisbury, Qld. 4107

www.ottoinstruments.com.au 28 | Motor Trader November 2014

that they will follow you along the path of enlightenment.

Why should someone consider a career in the automotive industry? It’s our major source of transport, and today it is very technical. We want students who can understand the technology we have now. For students who want to become the best the opportunities are endless. Hybrid technology is the start of a journey, a stepping stone to do Mechanical engineering, Electrical engineering, working in the mines on huge machinery.

What is the best piece of advice you can give to an apprentice starting out in the industry? Ask questions, learn all you can, never be too proud to listen. The more work you do the better you will get.

When you’re not training, what do you like to do? Football. Chelsea is my team. When I’m in London I always go to the games.

Student of the month

20140192

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

Training matters

HAYDEN NGAMETUA IS October's Student of the Month winner. The 23-year-old is a third year Light Vehicle apprentice at Westpoint Autos in Indooroopilly in Brisbane. A hard worker and Student of the Month, Hayden Ngam etua fast learner, Hayden's commitment to his to excellence in this field," apprenticeship is admirable he says. "I put my heart and - he is fully up to date with soul into my work and make his Nissan training, attends the most of everyday as a three Nissan training learning experience. workshops a year and has "Once I am qualified, I completed online product hope to become a mastertech training too. as I see a long and fruitful Hayden's positive attitude future for me as a mechanic." comes through loud and With ambition like that, clear when discussing his we are sure that Hayden future and the industry he will go far. wishes to work in. For taking out the MIT Student of "I am a passionate and the Month Award, Aaron wins a dedicated apprentice mechanic and am committed $50 voucher for Supacheap Auto

home on the website and there will be interviews with the vehicle owners as well as extensive picture galleries of the cars themselves. Australian Tyre Dealer, the second of the magazines published by MTAQ, will get its own home on the site too. For those with an interest in the tyre industry, it will become a vital source of information on product releases and other industry news, and will also carry features on issues affecting the trade, as well as

interviews with industry figures. As well as all that, both Motor Trader and Australian Tyre Dealer can offer banner and block advertising opportunities on their respective sites. That means there is whole new opportunity to advertise and reach both Association members and the wider general public. We hope you will like what you see and if you have any questions, give us a call on 07 3237 8777 or email info@mtaq.com.au

Workforce Development Helping business plan for the future One of the difficulties facing small businesses is ensuring that their employees have the necessary skills to meet the future demands of the business. As part of Auto Skills Australiaâ&#x20AC;&#x2122;s ongoing commitment to the automotive industry we have prepared a Workforce Capability Check List that can be used by you. It takes about 15 minutes to complete and is designed to help you analyse, review and develop appropriate strategies to assist your business to meet its performance and productivity targets through growing the skills of your workforce. For further information in accessing this free service contact: Greg Bayliss (03) 8610 2519 gbayliss@autoskillsaustralia.com.au John Scott on (03) 8610 2509 jscott@autoskillsaustralia.com.au

SETTING THE STANDARDS FOR AUTOMOTIVE SKILLS DEVELOPMENT This service is being provided with the assistance of funding provided by the Commonwealth Government through the Department of Industry.

November 2014 Motor Trader | 29

E S S E N T I A L S

ECHNOLOGY NEVER RESTS - it is always improving, becoming more efficient and more user-friendly. And that is exactly what MTAQ will become as it launches its all-new website this month. It will, we feel, be a revelation to you, our members. Easier to navigate with a fresh and clean design, the website will still include many of the important features we currently have - including information on member benefits, Green Stamp Accreditation, industry alliances and corporate partnerships as well as member-only features. MTA Institute of Technology's online presence will also be updated and will include all the information on courses and training opportunities that are available, as well as news updates and information on how to get started in apprenticeships and traineeships. The publications department of MTAQ gets a new section to itself too. Motor Trader magazine will have its own section, complete with news feeds, feature stories, interviews and other automotive articles. The popular 'Members Classic' feature from the magazine will find a

M E M B E R S

NEW MTAQ WEBSITE TO GO LIVE IN NOVEMBER T

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

Industrial relations

MICHELLE CHADBURN INDUSTRIAL RELATIONS OFFICER

PRIVACY LAWS AND EMPLOYEE RECORDS AND REFERENCE CHECKS

HE CHANGES TO the Privacy Act 1988 (the Act) came into effect on 12 March 2014. The Act replaced the previous National Privacy Principles with 13 Australian Privacy Principles (APPs). Most businesses with an annual turnover of more than $3 million should have an APP Privacy Policy in place. Employee records remain exempt under the Act. Employee records are records which directly relate to the employment relationship. For example, employee records may concern the engagement, training, disciplining, resignation or termination of employment. It may also extend to terms and conditions of employment, any union membership, leave records, taxation, banking or super affairs. Employers may not be able to assume that all information they hold in relation to an employee will be considered an exempt employee record. For example, emails that an employee has received from third parties outside the organisation may not be considered an employee record. As stated earlier, the employee records must be directly related to the

“... EMAILS THAT

AN EMPLOYEE HAS RECEIVED FROM THIRD PARTIES OUTSIDE THE ORGANISATION MAY NOT BE CONSIDERED AN EMPLOYEE RECORD.” employment relationship. If you are recruiting for new employees any personal information collected in the recruitment process for unsuccessful candidates fall within the Act. Therefore an unsuccessful candidate can request any information that you have collected during the recruitment process under the Act. When providing a reference for existing or former employees or conducting a reference check for a potential new employee you are best to have written consent from the person to provide and collect that information. Written consent should also be obtained by your employees if providing information to third parties such as real estates, lending institutions or banks at the employee’s request.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Division

Cairns Car Centre

Damien Hutley

Shed 47 / 193 Hartley Street CAIRNS Q 4870

cairnscarcentre@outlook.com

ARD

Nerang Chrome & Metal Polishing

Kim Tempany

4/20 Brendan Drive, NERANG Q 4211

nerangchrome@hotmail.com

NACA

Supreme Automotive

Leslie Gist

31-33 Keane Street, CURRAJONG Q 4812

admin@supremegroup.com.au

AED

30 | Motor Trader November 2014

M E M B E R S

Investment matters

MARKET WRAP “THE FUNDAMENTALS FOR INVESTING IN EQUITIES REMAIN SOUND. GLOBAL ECONOMIES CONTINUE TO IMPROVE (WITH THE NOTABLE EXCEPTION OF EUROPE) AND INTEREST RATES REMAIN LOW AND SUPPORTIVE.” tend to like buying into a currencyled pullback because the pullback in currency enhances profits for Australian companies. It achieves this via companies that earn US$ (QBE, resource companies, Resmed), it improves the competitive position of exporters (education, tourism, wine) and it improves the competitive position of those companies that compete with importers (selective retailers, domestic manufacturers). The pullback in the market of around 7% is beginning to present valuation support. The PE of the market has pulled back to 13.7x, which remains attractive in a low interest rate environment. This is especially so given our confidence regarding earnings is improving with the currency pullback. The market is anticipating growth of around 8%. The pullback in commodity prices presents some risks, however the currency provides a nice cushion. Importantly, the yield on the market will continue to attract interest in the current low interest rate environment. The banks are competing more aggressively in

mortgages, which mean they need to recoup some margin from term deposits. This is dropping the term deposit rate and means equities will continue to present a meaningful alternative. The fundamentals for investing in equities remain sound. Global economies continue to improve (with the notable exception of Europe) and interest rates remain low and supportive. The fall in the currency is supporting earnings for our market and with the pullback, valuation is more attractive. This provides a solid base for investors. Having said that, our market could see further selling as offshore investors exit our market and we would be more comfortable if the US saw a reasonable pullback. Our response has been to use some of the excess cash that we are holding to pick off opportunities as they present themselves.

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

November 2014 Motor Trader | 31

E S S E N T I A L S

HE S&P/ASX 200 Accumulation Index fell during September by 5.4%. Concerns around China triggered a further sell-off in iron ore and mining stocks. While uncertainty around the timing of interest rate hikes in the US put further pressure on both the Australian dollar and the defensive high-yield sectors of the market. Stocks with significant US dollar revenues fared best, as the weaker Australian dollar provided support based on earnings translation. We believe this market softness presents a buying opportunity for investors, however we explore the key risks for markets at present and the potential opportunities. The selling in the A$ has been unrelenting, however, it has been some time coming. The A$ usually rises and falls on the performance of commodity prices and the interest rate differential between Australia and other markets. Over the past year the currency has remained resilient despite significant falls in iron ore prices and other commodities. This has largely been a result of offshore investors parking funds in Australia, which has been perceived as a safe haven with a strong rating and decent interest rates. This has especially been so while the US and other markets have undergone QE, which has held interest rates very low in these markets. Investors are now beginning to anticipate the end of QE and this is causing a pullback in our currency. The question for investors is ‘Does the offshore selling continue, and how long does the A$ continue to weaken?’ This is clearly a difficult question to answer. However we

MT's Christmas gift guide

T’S CRUNCH TIME people! It’s just a few short weeks until Santa’s arrival and we’d guess not everyone out there has sorted Christmas presents yet – perhaps you

haven’t even thought about them! If that sounds like you then maybe the items in this month’s MT Christmas Gift Guide might give you some inspiration.

COASTAL MOTO BEAN BAG THINK BACK A couple of decades to the motorbike jackets of yesteryear. Two-tone, white piping, leather, super cool . . . Okay, so this might not be a motorbike jacket but this bean bag inspired by vintage leather jackets still has plenty of style. Made from easy wipe fabric with a removable internal liner and dual safety zip, the Coastal Moto Bean Bag may be just the thing for your man cave! $74.95 For stockists and more info go to www.lifeliveitup.com.au

INDIAN MOTORCYCLE TENT IF YOU’VE GOT a soft spot for the classic American Indian motorcycles (and we’re sure a lot of you do), and you enjoy traipsing off into the outback of a weekend to camp, fish and whatever else it is you do out there, then perhaps this is for you. The two-person tent from UK firm FieldCandy has a distinctive rustic style but underneath that ‘rebel’ appearance is a state-of-the-art design - it is built to withstand extreme weather conditions to the same high specifications of an expedition tent and is 100% waterproof, UV fade resistant and has a breathable inner tent. Fitting neatly into a compact carry case, this could be just the thing for those bike riders seeking the freedom of the open road. $745 from www.fieldcandy.com

NOAH'S ARK MOUSE MAT BEING A FRIEND of the environment is something we should all aspire to be, and to be able to combine that with helping to make lives better for poor craftspeople . . . well . . . what could be a better gift? Made by artisans for Noah's Ark Handicrafts, this mouse pad is just one example of some clever recycling of tyres using simple design. And Noah's Ark helps to ensure good healthcare, education and housing for very poor artisans in north Indian villages, helping them to achieve independence. $5.95 from www.oxfamshop.org.au

TYRE DESIGN BRACELET BOX CLEVER EH HOLDEN THE EH HOLDEN is an iconic car and this clever little box is a delightful copy. Measuring 150mm in length, 50mm in width and 50mm in height you can lift the lid and drop your valuables inside or use the hinged lid of the bonnet for storage. The Box Clever design is handmade from kiln-dried New Zealand Rimu Veneer and finished with an organic citrus-based oil. Because Rimu has such a distinctive grain every product is truly unique. $64.95 from www.antipodeanlove.com.au 32 | Motor Trader November 2014

A NIFTY BIT of manly jewellery here. Under normal circumstances, not every man can pull off the fashion statement that is a bracelet, but we reckon a bracelet with the imprint of a sports car tyre would suit just about any bloke. Featuring a red (or black) silicon band with a polished stainless steel clasp the bracelet is adjustable by 2cm to fit any wrist size. $65 from www.bijoux.com.au

Industry insight

TIME IS LIMITED… SO LET’S USE IT WISELY T IME MANAGEMENT OFTEN crops up as an issue for business people. They say “I just don’t have enough time to get everything done”. They complain of trying to do everything and getting staff to help. If time is limited, what we have to work on is the stuff we need to get done in that time. It’s about having a clear understanding of what that stuff is and prioritising objectives and actions. The best way to prioritise is to look at it from the perspective of the ‘Five Key Areas of Business’: 1. The products and/or services you sell 2. How you market and sell 3. How you operate and finance your business 4. How you manage staff 5. How you manage customer service. Let’s discuss each and ways to be effective. 1. The products and/or services you sell. What is it you offer to the market that solves a problem or creates a benefit? By having a clear understanding you can articulate and document it so others, e.g. staff, can understand. They can then provide input into how it can be delivered effectively and improved. Getting knowledge out of your head and into a documented system saves time. You don’t have to repeat things – you can point to the system for guidance. A system has the benefit of increasing business value. 2. How you market and sell Once you know what your product or service is and how it benefits customers, you need to articulate the benefit and create interest. The key issue here is what is the best means of reaching your market i.e. ask yourself “Where do my customers hang out?” For example, the aged market are reading newspapers, whereas the youth market spend most of their

time online, so you need to market appropriately to each. There are systems available for handling marketing automation. Once set up they create a momentum of their own – I’m referring to digital marketing and getting messages out via social media and driving traffic to your website. Once you’ve got interest from a customer you need them to buy. Some sales are immediate e.g. retail, whilst some take longer e.g. a service or project. Consider what’s involved in the process and document it, so others can perform some or all of it. There are cost effective systems to help you systemise the process and improve sales conversion rates. 3. How you operate and finance your business Once you’ve made a sale, how are you going to deliver to your customer? A documented system helps you and staff get it right consistently. This saves time and money. A system creates efficiencies in the time taken to get jobs done, allowing more work to be done and better profit and staff satisfaction. Systems are available –in the cloud – that provide a framework for systemising operations in many different industries. Financing business is one of the biggest areas of stress. Having a thought out finance plan is critical. Some key numbers to manage are: - The direct cost of your product or service i.e. what it costs to get it ready for sale - The right price to charge to be profitable, whilst remaining competitive - Price increase or decrease – keeping your price right to maintain a profit and understanding the impact of discounting on profit. - Overheads e.g. rent, wages,

IT costs, etc. - Number of days customers take to pay - Number of days to pay suppliers - Number of days stock sits on the shelf pre-sale - Number of days jobs/projects are in progress pre invoicing 4. How you manage staff A system to proactively manage staff saves stress. People often struggle to attract the right staff. If you want to achieve this you have to be an ‘employer of choice’. You need to project a professional image and hire, manage and fire people properly. It starts with job descriptions, so everyone knows what’s expected. Proactive HR management helps to improve staff motivation. There are HR management systems available that guide you through the process and to be compliant. This helps to avoid unhappy staff and unfair dismissal claims. 5. How you manage customer service Last but not least are your customers. You need to look after them well, so they will not only come back and buy, but refer you to others. This is more critical than ever due to internet based feedback . You need a system for looking after customers’ experience to ensure it is consistently good. This saves time and money dealing with complaints and customers who refuse to pay – plus marketing required to get more new customers to replace the unhappy ones. If the things you’re spending time on aren’t progressing the activities mentioned above, perhaps you should stop doing them. To learn more about saving time by systemising your business, download our whitepaper ‘How Systems Can Ensure Your Sanity’ at: http://info. cfooncall.com.au/how-systems-canensure-your-sanity November 2014 Motor Trader | 33

Honda Genuine Plus A Trade Loyalty Program presented by Honda honda.com.au/hgp

Colosseum, Italy

Great Wall, China

Grand Canyon, USA

Pyramids, Egypt

Taj-Mahal, India

Great Barrier Reef, Australia

Machu Picchu, Peru

Each month there will be a prize draw where 5 Coles Group & Myer Gift Cards to the value of $1,000 each are given away. At the end of the 6-month period, all eligible entries will enter into the major prize draw to win Flight Centre Travel Vouchers: 1st Prize – $25,000 Flight Centre Travel Voucher 2nd Prize – $15,000 Flight Centre Travel Voucher 3rd Prize – $10,000 Flight Centre Travel Voucher Already a Honda Genuine Plus member? No need to register again! You will be automatically enrolled in this promotion.

HP1527

Entry to the Competition constitutes acceptance of the Terms & Conditions. The promoter is Honda Australia Pty Ltd, ABN 66 004 759 611, of 95 Sharps Rd Tullamarine VIC 3043. Telephone: (03) 9285 5623. Competition opens at 9am 1/07/2014 and closes at 5:00pm on 31/12/2014. Entry is restricted to registered trade customers who purchase Honda Genuine Parts from authorized Honda dealers in Australia. Entry is based on the purchase values (ex-GST) of Honda Genuine Parts which will be accumulated within 1-month period (in Jul, Aug, Sep, Oct, Nov, Dec 2014) for the monthly prize draws and within 6-month period (between Jul and Dec 2014) for the major prize draw. The prize draws will be held at Honda Australia 95 Sharps Rd, Tullamarine VIC 3043 Australia with an independent witness at 2:00pm on 30/01/2015 for the major prize draw and on the following dates for the monthly prize draws: 21/08/2014, 18/09/2014, 16/10/2014, 20/11/2014, 18/12/2014 and 22/01/2015. The first valid entries drawn will win the prizes, listed in full Terms and Conditions listed at honda.com.au/hgp. The winners will be notified in writing within five days of the draws. The name of winners will be published on honda.com.au/hgp on 04/02/2015 for the major prize draw and on 26/08/2014, 23/09/2014, 21/10/2014, 25/11/2014, 23/12/2014 and 27/01/2015 for the monthly prize draws. Full Terms & Conditions are available from the Promoter on honda.com.au/hgp. Authorised under Permit No: VIC Permit No. 14/4460; NSW Permit No. LTPS/14/04779; SA Licence No. T14/1094; ACT Permit No. TP 14/02103.