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2 | AUTOTALK JANUARY 2020 | www.autotalk.com.au NEWSTALK AADA URGES REGULATORS TO STAMP OUT FAKE SALES REPORTING

he Australian Automotive Dealer However, he has called on “Many dealers have Association (AADA) is urging regu- the been left with a backlog Tlators to stamp out the practice of to take quick action or of unsold stock which falsely reporting vehicle sales figures. risk the regulator forcing is difficult to clear in This potentially harms consumers, compliance through harsh a profitable manner,” investors and dealers, and distorts financial penalties. Voortman adds. key data that is relied upon across the “Requiring a vehicle to be “These practices also economy. registered before it is sold undermine the credibility It was reported that the US Securities and is an important step, but of new car sales numbers Exchange Commission (SEC) opened an it is only a first step and reported through the investigation into BMW, and September the whole industry should James Voortman VFACTs product, which last year saw Fiat agreeing to be working together to is used by investors, pay the SEC $40 million over claims it ensure that cars are only reported as sold economists and the Government in inflated sales figures. when a genuine customer takes delivery assessing the health of the industry “The practice of reporting false new of the car. and the broader economy and then car sales figures has been highlighted making key decisions off the back of that recently in the United States and it is information.” a practice that has been endemic in “In recent years some How does false automotive sales data Australia for some time,” AADA chief manufacturers in impact us? executive James Voortman says. • Consumers are left vulnerable “It potentially leaves consumers Australia have focused regarding the start time of their war- vulnerable regarding the start time of solely on sales volumes ranty. their warranty; it misleads investors • A vehicle is the second largest by overstating the health of the which has led to investment a household makes, after Australian automotive industry, and it questionable reporting buying a home; and is therefore puts the squeeze on dealers who are practices and severely a key indicator of consumer con- currently experiencing some of the fidence and Australia’s economic most challenging market conditions in constrained the health. decades,” Voortman says. profitability of dealers." • It can influence important decisions The Federal Chamber of Automotive related to the economy, like interest Industries (FCAI) released the 2019 rates that impact all households. figures which show the lowest annual “In recent years some manufacturers in vehicles result in nine years, decreasing “It’s an open secret in the industry that Australia have focused solely on sales by 7.8%. a number of major manufacturers set volumes which has led to questionable Voortman says it is time for the Australian incredibly aggressive sales targets reporting practices and severely Securities and Investments Commission placing immense pressure on their constrained the profitability of dealers." (ASIC) to follow the US regulators and dealers to achieve these targets by Today, we see the 21st consecutive reprimand those manufacturers that push reporting cars as sold, despite there month in which new car sales have fake sales numbers. being no end customer.” contracted – surely now is the time He commends FCAI on its work to Voortman explains that dealers are to bring the focus back to profitability continually improve the integrity of the compelled to comply with manufacturer to ensure a sustainable future for the VFACTs data and welcomes moves by directives, as they fear being denied industry,” Voortman says. Australian car importers to improve sales important incentive payments, or losing reporting practices. their franchise agreement.

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GROUP GENERAL MANAGER Deborah Baxter 027 530 5016 [email protected] It’s an ironic twist in the history of So successful was the Australian one of Australia’s most iconic engineered mash-up of the Rekord/ PUBLISHER / CHAIR nameplates that the Commodore journey Senator body shell that Opel itself Vern Whitehead began in 1978 and will finish in 2020 with produced the car and called it the 021 831 153 a mid-size car sourced from Opel. Commodore C. [email protected] That Opel bookends the Commodore However, under the sheetmetal the story shows how Holden was and Aussie-built VB Commodore differed Auto Media Group Limited makes every endeavour to ensure information contained in this continues to be integrated into GM's significantly to its European cousins, publication is accurate, however we are not liable international operations. with major upgrades to the chassis, for any losses or issues resulting from its use. Commodore sales in Australia peaked at suspension, steering, plastics, and Annual subscription: $84 + gst ($96.60) more than 94,000 units in 1998 but fell cooling system, to cope with the Printed by: Alpine Printers. to just over 9000 units in 2018 as buyers harsher conditions that our climate and moved out of passenger cars and into outback roads would throw at it. Extra SUVs and double-cab utes. strengthening was thrown at the body Unlike the ZB Commodore series which Continued on page 5 is fully imported from PSA- owned Opel in Europe, the 1978 autotalk.co.nz VB Commodore was a locally autotalk.com.au produced and engineered car based on the mid-size Opel Rekord transporttalk.co.nz body shell with the nose of the transporttalk.com.au Opel Senator grafted to it. evtalk.co.nz The reason for this was so that evtalk.com.au the Aussie car could fit both six- wheeltalk.co.nz cylinder and V8 engines under the hood as well as rack and identicar.co.nz pinion steering.

4 | AUTOTALK JANUARY 2020 | www.autotalk.com.au NEWSTALK

Continued from page 4

panels which were constructed from solid BHP steel. The VB offered buyers the choice of a 64kW 2.85-litre or a 66kW 3.3-litre in-line six-cylinder engine or an 87kW 4.2-litre or 114kW 5-litre V8 engine, transmissions were four-speed manual or three-speed automatic. Holden’s asthmatic 58kW 1.9-litre four-cylinder Starfire engine was exported to New Zealand in CKD kits for VB models assembled at Trentham, north of Wellington. Thanks to its modern design the VB Commodore offered more head and legroom than the outgoing Kingswood, although the older car had four more centimetres of shoulder room. Inspite of the Commodore taking out the 1979 Wheels award, the smaller car lost some fleet sales to the larger . During its lifetime from October 1978 to March 1980, Holden manufactured more than 95,000 VB Commodores. Holden launched the VC Commodore in 1980 with minor tweaks to the engine range for economy and steering and suspension for comfort, but the 1981 VH Commodore series brought a raft of cosmetic changes as well as the option of a five-speed manual transmission on the four and six-cylinder models. The company sold more than 78,000 units in 1982. Updated in 1984 the VK Commodore introduced a six-window glasshouse design as opposed to the older Again, the company turned to Opel for the return of wheel arch flares over the cars' four-window set up, as well as a donor vehicle to engineer to local front and rear guards. redesigned radiator grille and new conditions. The 1988 VN Commodore In 1995 the revamped VS Commodore plastic bumpers. Holden ditched the used a stretched and widened VL saw significant upgrades to the V6 2.85-litre six and the 4.2-litre V8, and platform over which sat a locally designed engine now dubbed “Ecotec” and a the 1.9-litre four-cylinder was kept solely and widened version of the new Opel supercharged version became available. for the New Zealand market. Omega/Senator body. The VR and VS models also saw the The VL update in 1986 saw an all-new The new longer wide-body VN introduction of driver and passenger nose design for the Commodore with Commodore also received a new 3.8-litre airbags to complement the ABS system. sleeker headlamps and much narrower V6 engine and four-speed automatic grille while the upmarket Calais version transmission instead of the previous Third generation received a semi-concealed headlamp Nissan inline sixes. The venerable Holden design. The VL saw the introduction of 5-litre V8 engine was re-engineered for Introduced in 1997 the VT Commodore 3-litre six-cylinder engines both naturally multipoint injection with an output of was an all-new car designed in Australian aspirated and also turbocharged sourced 165kW. from the wheels up but Holden carried from Nissan to replace the aging Holden The updated VP Commodore arrived in over the 3.8-litre V6 and 5-litre V8 from 3.3-litre but the 5-litre V8 soldiered on. 1991 which included new independent the VS. Although the design of the body rear suspension as well as antilock shell was inspired by the Opel Omega B, Second generation braking as standard on the Calais and the VT shared only six interior parts with SS models but optional on all other that model, and it saw the largest annual Holden knew it needed a bigger car to variants. sales for Holden with more than 94,000 successfully tackle the Ford Falcon and In 1993 the Commodore VR brought a units sold in 1998. win back some lost business from police, major restyling of the body shell, as well It was the also last Commodore to feature taxi, corporate and government fleets. as new front suspension geometry and Continued on page 6

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 5 NEWSTALK

Continued from page 5 Australian designed and manufactured Standard features across the VF a Holden built V8 engine, the venerable VE Commodore based on the global Zeta Commodore range included front and 5-litre was retired in favour of a Chevrolet rear-wheel drive platform, initially the car rear parking sensors, reverse camera sourced 5.7-litre V8 in 1999. was available with the same engines and and auto park assist, high specification The VT was arguably Holden's most transmissions carried over from the VZ. models such as the Calais-V and SS-V successful chassis, spawning a long Holden made changes to the VE in Redline models received a forward and wheelbase for the wagon and Statesman/ 2008 including a passenger seatbelt reverse collision alert system and a colour Caprice models as well as left-hand-drive reminder system which allowed the car heads-up display as standard equipment. vehicles for export, the all-wheel-drive to be upgraded to a five-star ANCAP The mildly restyled VFII arrived in late Adventra/Crewman and the Monaro safety rating. New 190kW 3-litre and 2015, with the major change being the Coupe. 210kW 3.6-litre spark ignition direct fitment of a 304kW LS3 Chevrolet unit Updates to the VT saw the refreshed injection (SIDI) V6 engines and six-speed in all V8 models. The final drive and the VX arrive in August 2000 with subtle automatic transmissions arrived in 2009 suspension tune of the Redline models cosmetic changes to the Berlina for the MY 2010 VE models. was also revised. and Calais models. The 2002 VY The VE series 2 (VEII) arrived in mid 2010 Commodore arrived with sharper new which saw the introduction of the Holden Full circle front and rear sheetmetal and the iQ system, a centre-mounted LCD display interior and dashboard also received a that provides navigation, Bluetooth, and Holden confirmed that it would end major redesign to keep the car fresh. controls to the stereo. There were also local manufacturing in 2013 and the The 2004 VZ Commodore saw the small alterations to the styling and a decision was taken to source and import introduction of the new 3.6-litre Alloytec number of other changes. a new European-built Commodore V6 engine in 175kW and 190kW versions The final iteration of the Aussie-built based on the Opel Insignia, but with allied to a four or five-speed automatic Commodore, the VF arrived in 2013 significant engineering input from transmission or a six-speed manual. which saw a major overhaul of the styling Holden so that the car would meet the of the car as well as revised suspension needs of the Australian market. Fourth and last Aussie generation and electric systems, not to mention the The new mid-sized arrival of sophisticated active and passive would be available in front-wheel-drive In 2006 Holden launched the last all-new safety technology. with four-cylinder petrol or diesel engines or in all-wheel-drive with 3.6-litre V6 engines. Petrol cars are offered with a nine-speed automatic and diesels come with an 8-speed auto. Sadly for the Commodore the end of the line was announced on December 10, 2019 which interim chair and managing director Kristian Aquilina says is the result of: "decisive action to ensure a sharp focus on the largest and most buoyant market segments", focusing on the Holden SUV and ute range, which had accounted for over 76% of the company’s sales during 2019.

6 | AUTOTALK JANUARY 2020 | www.autotalk.com.au DEALERTALK

PARRAMATTA DEALERSHIPS SALE REFLECT MULTINATIONALS CHANGING FOCUS

he sale of the Parramatta BMW, Inchcape says the sale of the five generate 90% of our group trading profit,” MINI, , Jaguar and dealerships in Parramatta’s Auto-Alley to Inchcape PLC group chief executive TLand Rover dealerships by Malaysian-based Sime Darby Berhad will officerStefan Bomhard says. Inchcape Australia to Sime streamline the Australia business “In line with the Ignite strategy and our Darby Motors Australia re- around its distribution of commitment to be the OEM partner flects the changing business and Peugeot Citroen, including of choice, Inchcape has completed 10 focus of the two multina- the retail sites related to these distribution deals since 2016.” tional groups. brands. However, having divested the distribution The three-site deal was It purchased the Australian of the Groupe PSA brands in Australia transacted for $112 million distribution rights for the and New Zealand (which was acquired by (63m pounds) in December Peugeot, Citroen, and DS brands Kiwi car magnate Rick Armstrong), Sime 2019. (Groupe PSA) from Sime Darby Darby continues to focus on its strategy When British-based Stefan Bomhard Motors Australia in July 2017. to expand its car and commercial retail Inchcape PLC first Inchcape says that retail-only footprints with recent acquisitions on announced the deal in September 2019, operations outside these two contracts both sides of the Tasman. it said the three sites had generated will be meaningfully reduced. The Parramatta acquisition adds 79 million pounds ($149m of revenue The Australasia market remains highly Volkswagen, Jaguar and Land Rover to year-to-date, but the Australian retail- attractive and the British multinational Sime Darby list of marques in Australia, only business contributed just 300,000 says it continues to see long-term which also includes BMW and Porsche. It pounds ($570,000) of trading profit in the potential for growth through its represents all five marques in the other first half of 2019. distribution contracts. markets it operates in. Operating in 32 markets, Inchcape is It says at following the disposal of Sime Darby Motors had previously an independent multi-brand automotive the retail sites it will embark acquired a majority shareholding distributor and retailer with multi- on a reorganisation of the in BMW Brisbane in 2013, channeling revenue streams include new Australian distribution providing it with two retail and used vehicle sales, parts, service, business in which it expects outlets, a repair centre, a Mini finance and insurance. It was listed on to incur exceptional costs outlet, and the Queensland the London Stock Exchange in 1958, its in the region of five to eight agency for Lamborghini. head office is based in London and it million pounds ($9.5 to $15 It’s first retail acquisition employs more than 18,700 people. million) over the second half was the Parramatta Porsche Under its Ignite strategy, Inchcape is of 2019. dealership in 2012. focusing on more disciplined utilisation “This transaction is another Patrick McKenna Sime Darby Motors Australia of capital by divesting retail operations demonstration of strategic and New Zealand managing where possible and building up its progress under Ignite and the focus on director Patrick (Pat) McKenna says the global distribution footprint. our core Distribution activities which Continued on page 8

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 7 DEALERTALK

Continued from page 7 investment in the Sydney dealerships is aligned to the company's expansion strategy of mergers and acquisitions targeting the retail luxury and super luxury segments, particularly in large markets like Australia. “The addition of these dealerships to our existing Porsche Parramatta operations will expand our scale in the retail luxury business at one of Sydney’s most recognised automotive retail locations,” McKenna says. “Following close on the heels of Sime Darby’s announcement on the purchase of the transTasman Gough Group, this acquisition shows the group’s long-term commitment to their customers to gain a greater McKenna also told GoAuto that Sime investment in Australasia.” understanding of their needs, as well as Darby’s head of operations Rob Thomson McKenna told GoAuto that Sime Darby identify community and business groups will assume the role of acting dealer is committed to delivering a premium that we can partner with and support. principal at Parramatta BMW and Mini customer experience through elevated “We are opening our doors for a series of until an appointment was made. He personal service and engagement with showroom launches in the new year and also said that Denlo Volkswagen would the local community as it continues to invite everyone to come and meet the continue to trade under the same name grow its presence in Australia over the teams. We will also host regular events with Joshua Youkhana remaining as next year. in the dealerships and look forward general manager, while Parramatta “We have tasked the general manager to hearing how we can best serve Jaguar and Land Rover will be helmed by of each dealership to consult with Parramatta and greater western Sydney.” Gary Kelly as general manager. ALICE ALICE ALICE ALICE MAKE BETTER ADVERTISING DECISIONS. SELL MORE CARS. GENERATE MORE PROFIT.

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8 | AUTOTALK JANUARY 2020 | www.autotalk.com.au NEWSTALK

RAM TRUCKS A LOCAL ‘AUTOMOTIVE SUCCESS STORY’

am Trucks Australia is marking a month in the US, and successful year after rolling the Australian’s love of R5000th vehicle off its Melbourne American products, production line and recording 2868 sales Crichton realised there in 2019. was an opportunity to The granite crystal grey 1500 V8 Hemi demonstrate Australia Laramie marked the brand’s growth which could manufacture and was up 296.7% over its 2018 results. produce a world-class Ram offers customers light duty (1500) product despite the closure of other local 3500 models into right-hand drive and heavy duty (3500 and 2500) manufacturing facilities. vehicles in late 2015, before they went American trucks to suit a range of A deep dive of the conversion industry on sale in early 2016. The volume selling customer needs – including towing in 2013 discovered some 46 different 1500 light duty model came on stream in anything from 3.5 tonnes up to 6.9 Ram convertors operating, with differing July 2018. tonnes. standards, qualities and expense. Each nameplate undergoes a thorough “This is truly an Australian automotive Ram Trucks decided they were ready to re-engineering process which designs success story,” Ateco Group executive enter the market with the Ateco Group and produces right-hand drive trucks for chairman Neville Crichton CNZM says. and a worldwide search for an effective Australia and New Zealand, including Crichton was the originator of the idea remanufacturing partner began. using 400 locally sourced remanufacture to convert left-hand drive Ram Trucks Four potential companies were identified, parts. to right-hand drive at the bespoke including the Walkinshaw Group, with As a result, RAM Trucks Australia is the Melbourne manufacturing facility. whom Crichton has a long-standing world’s only factory-authorised right- It’s 2019 result was a major boost on the relationship, having raced for Tom hand drive manufacturer of Ram Trucks previous years which saw 767 sales in Walkinshaw back in the 1980s. The and, from June 2019, Australia’s only 2018 and just 449 in 2017. Walkinshaw Group proved they were the 24-hour vehicle manufacturing facility. “Most pleasing of all, however, is most competitive and were awarded the It’s also a major source of employment the boost to the local automotive contract in 2015. in automotive engineering, design and manufacturing sector, employing The Ateco Group has since invested over production for both Ram Trucks Australia over 250 people directly, and many $100m in tools, equipment, inventory, and and New Zealand, and the Australian more indirectly via our local supplier stock to enable product development, component companies that keep the agreements,” he says. quality and conformity with the overseas factory supplied with Australian made Ram Trucks Australia began in 2013 when requirements of Ram Trucks International, parts. the Ateco Group became New Zealand the locally stringent ADR regulations, and “The investment is significant and distributor for Fiat Chrysler Automobiles, high consumer expectations. ongoing,” Ram Trucks Australia special which included the Ram Trucks brand. Ram Trucks Australia began converting advisor David Smitherman says. With around 50,000 Rams sold per left-hand drive heavy duty 2500 and Continued on page 10

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 9 NEWSTALK

Continued from page 9 “We have a fantastically engaged dealer network in both Australia and New Zealand, and we have exciting plans for 2020 and beyond to continue building the brand, product portfolio and network.” The range begins with the Ram 1500 Express V8 Hemi at $79,950 driveaway. The vehicles are backed by a three year/100,000km warranty with roadside assistance, and requires a service every 12 months or 12,000km. our partners, and we’ve done just that times has lead the roll-out of Chinese The trucks are fully factory-supported with multiple brands over the years.” brands, with LDV recording 6480 units to and backed by 45 dealers across However, it was the RAM Trucks that the end of December 2019, a rise of 6.9% Australia and 13 in New Zealand. stood out as the real highlight. over 2018. “I’m particularly proud of our RAM Trucks “Our dealer relationships have been Ateco passes 300,000 sales Australia business this year,” he says. critical in helping us establish new brands Ateco Group’s overall result saw it deliver “We identified early on that there like LDV Automotive in Australia,” Ateco 302,525 retail sales in 2019 which also was a market for these vehicles, so Group managing director Roger Zagorski included the brands Maserati, LDV, Alfa invested heavily in R&D to ensure the says. Romeo, Chrysler and Jeep. remanufacturing process at our facility “Now, as we enter our 35th year “I’m delighted that the Ateco Group and in Melbourne was second to none – the of business in 2020, the positive the brands we’re proud to represent have results are now speaking for themselves.” partnerships we have nurtured with reached this milestone and, importantly, The Ateco Group has played a critical role OEMs and dealers alike will continue to continue to grow,” Crichton says. in establishing many automotive brands deliver success, and we look forward to “When we started back in 1985 our goal in Australia over the years – from VW and announcing new models and strategic was to deliver a profitable business to all Audi, to Kia and Suzuki – and in recent partnerships shortly,” he says.

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10 | AUTOTALK JANUARY 2020 | www.autotalk.com.au PEOPLETALK

INTRODUCING GUMTREE CARS

in the automotive market,” Dicello says. strengthen its commitment to provide the “It’s an exciting time for Gumtree Cars, best value in the cars category. Richard Dicello, as we continue to make our offering Gumtree is Australia’s local marketplace, Head of Motors, even more compelling by giving with more than three million listing across Gumtree Australia. Australian consumers and dealers more hundreds of categories and over seven reach and choice in market.” million unique monthly visitors. Buyers The three brands will join to offer dealers and sellers can buy, sell and find things and consumers a strong competitive across a variety of categories, including alternative to existing online automotive home and garden, baby and children, umtree Cars is part of Australia’s classified platforms. sport and fitness, as well as Gumtree Cars local community marketplace Gum- Gumtree is also committed to no price and Gumtree Jobs. Gtree, and the number one platform rise in 2020, to support local dealers and in the country for privately listed cars. Launching in 2017, Gumtree Cars was a part of a successful rebrand and today has more than 150,000 new and used car listing on the site, and 6000 new cars listed a day, making the automotive category the second most popular From Roadside Assistance Supplier category on Gumtree. Recent site improvements include to Solutions Partner integrated car records reports, car 365RoadsideAssistance.com.au tracking, broader radius for top ads and unlimited photos for dealers on the Your business can now connect with a leading national Partner of premium package. choice delivering nextgen roadside technology and service “Launching in 2017, Gumtree Cars was a part of a successful rebrand and today has more than 150,000 new and used car listing GROW TODAY on the site, and 6000 CLICK HERE TO LEARN MORE new cars listed a day, making the automotive category the second most popular category on Gumtree. "

Richard Dicello serves as Gumtree We’re supporting Manufacturers, Dealerships, Finance and Insurance groups in Australia’s head of motors, after joining launching white-labelled APP’s and custom portals that drive innovation through Gumtree Cars last year. seamless Customer experiences and a dynamic Provider network. He joins at an exciting time, with the acquisition of Cox Automotive Media Solutions, which owns CarsGuide.com.au Partner. Connect. Grow. and Autotrader.com.au (see story), subject [email protected] to deal close. 02 8705 5497 “This acquisition will strength our position

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 11 PEOPLETALK eBay to acquire Cox Automotive Media Solutions, joins Gumtree business

ultinational e-commerce cor- poration eBay has agreed to Macquire Cox Automotive Media Solutions, which owns leading automotive platforms CarsGuide.com.au and Auto- trader.com.au. The two consumer brands will join the Gumtree Australia business, Australia’s local marketplace and a part of the eBay Classified Group portfolio, subject to the deal closing. Autotrader.com.au has about 2300 Richard Dicello Shaun Cornelius dealers and around 90,000 listings, and Gumtree has about 1800 dealers and around 80,000 private-party listings – Australian consumers and dealers more to provide a comprehensive suite of together Gumtree will develop a more reach and choice in market.” offerings for auto buyers and sellers,” competitive and attractive car-buying CarsGuide.com.au provides sellers and Cox Automotive Australia media solutions platform for Australian consumers. dealers with a resource to access the chief executive Shaun Cornelius says. The three brands will create a research and content to confidently “Through this deal we have the comprehensive offering for the buy and sell vehicles. Autotrader.com. opportunity to utilise the benefits of automotive industry and a strong au is an automotive marketplace that these sites combined with the audience alternative to existing online automotive provides services for dealers and creates and listings from Gumtree, to deliver platforms. relationships between buyers and sellers. significantly more value for consumers, “This acquisition is an important part of Gumtree Australia head of motors car dealerships and advertisers.” eBay Classifieds Group’s verticalization Richard Dicello says the acquisition will Cox Automotive Australia Rob Whiten strategy in the automotive market, strengthen its position in the automotive adds, “for Cox Automotive Australia, it following our success acquisition of market, giving consumers access will enable us to focus on our broader Motors.co.uk in the UK earlier this to thousands of additional listings, strategy of building upon our strengths in year,” eBay Classifieds Group senior automotive research, reviews and the wholesale arena and support dealers, vice president and general manager content, as well as a strong dealer tool OEMs, fleet/lease and retail customers Alessandro Coppo says. and car buying destination. in changing and challenging market “Gumtree is already an established player “Together with Gumtree Australia, conditions.” in the Australian private sales market, these brands create a robust customer The transaction is subject to regulatory and the addition of CarsGuide.com.au experience in auto buying – from approval in Australia and other closing and Autotrader.com.au will make our research to purchase,” Dicello says. conditions, and is expected to close in offerings even more compelling by giving “Our team has worked extensively the second quarter of 2020.

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12 | AUTOTALK JANUARY 2020 | www.autotalk.com.au NEWSTALK

ATECO GROUP PASSES 300,000 SALES

he Ateco Group, an Austra- • Headquarters in Mt Wellington, Auckland lian independent automotive • Distributes Jeep, Fiat, Chrysler, Dodge, RAM, Alfa Romeo in Tdistribution company, has hit New Zealand a record number of sales in 2019. European Automotive Imports The company broke through the • Headquarters in Sydney 300,000 barrier by delivering • Distributes Maserati in Australia and New Zealand 302,525 retail sales, outselling European Automotive Imports Audi, Jeep, Land Rover, Lexus and – South Africa Volvo among other brands since the • Headquarters in Johannesburg FCAI first started recording vehicle Neville Crichton • Distributes Maserati in South Africa, owns Maserati retail sales in 1991. businesses in Johannesburg and Cape Town “I’m delighted that the Ateco Group and the brands we’re proud American Special Vehicles to represent have reached this milestone and, importantly, • Imports, remanufactures RAM products to RHD and continue,” Ateco Group executive Neville Crichton says. distributes for sale in Australia and New Zealand “When we started back in 1985 our goal was to deliver a Ateco properties: profitable business to all our partners, and we’ve done just • Headquarters in Sydney that with multiple brands over the years.” • Manages properties in Australia and New Zealand. The Ateco Group has offices in Australia, New Zealand and South Africa, and has a portfolio of brands from Maserati, RAM Trucks Australia and LDV Automotive, through to Alfa Romeo, Chrysler, Jeep, Warn winches and additional property assets. RAM Trucks Australia recorded 2868 retail sales to the end of December 2019, a 296.7% increase over 2018. RAM Trucks Australia recently celebrated the building of its 5000th vehicle. It re-started local automotive manufacturing in Melbourne in late 2015. • Automotive DMS & IMS Solutions “I’m particularly proud of our RAM Trucks Australia business this year,” Crichton says. “We identified early on that there was a • Drive Results in every area of your business market for these vehicles, so invested heavily in R&D to ensure with Autoline the remanufacturing process at our facility in Melbourne was second to none – the results are now speaking for themselves.” • Autoline, the most globally endorsed DMS, The Ateco Group has played a critical role in establishing is a flexible, scalable solution many automotive brands in Australia, from VW and Audi, to Kia and Suzuki. Recently, it led the roll-out of Chinese brands, • Supported by New Zealand’s largest DMS with LDV Automotive recording 6480 units to the end of provider December, up 6.9% on 2018. “Our dealer relationships have been critical in helping us establish new brands like LDV Automotive in Australia,” Ateco Group managing director Roger Zagorski says. “Now, as we enter our 35th year of business in 2020, the positive partnerships we have nurtured with OEMs and dealers alike will continue to deliver success, and we look forward to announcing new models and strategic partnerships shortly.” The Ateco Group of companies:- Contact Details: Ateco Automotive Pty Ltd: • Headquarters in Sydney with branch offices in Melbourne P: Admin +649 583 2482 and Brisbane Support +649 5832424 • Distributes LDV in Australia E: [email protected] The Ateco Group New Zealand:

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 13 PEOPLETALK

THE RISE OF THE DIGITAL DEALERSHIP - WHY MORE SHOULD EMBRACE DIGITAL

t’s no secret that over the past decade gives users the opportunity the automotive industry has under- to connect with and build gone a complete transformation. This a network of dealers by Andrew Tyson, I General Manager at CarZapp change has had a significant impact on nationwide. With access the evolving retail space, with an increase to more stock, users can [email protected] in digital solutions for the sector due to quickly and efficiently consumers preferring to access informa- buy and sell vehicles at tion online. wholesale prices, and Overwhelmingly consumers are finding manage inventory. Having you haven’t had the opportunity to sell to. information online and looking to a launched an updated version in 2019, Leading the way in joining the digital diverse range of sources in the car including a new web version and app, dealership revolution are rental buying process. Dealers in the retail CarZapp is now enabling over 600 franchisees with Avis Budget Group and space are increasingly taking advantage dealers to more efficiently buy and sell Thrifty both running successful pilots on of digital trends such as the rise of video stock. The mobile app allows users to buy CarZapp, resulting in Thrifty contracting content to communicate with consumers. and sell from anywhere giving dealers nationally. However, in wholesale, the uptake of more flexibility when moving stock. Thrifty now have nationwide monthly these digital trends has been slower Not only do digital wholesale tools tenders on CarZapp, as they’ve proven with few digital solutions to aid with the assist with efficiency, they also support it’s an efficient way to move their issues dealerships have been facing. dealerships looking to improve their surplus stock. Dealerships are still navigating the reporting, make it easier during audits Following the launch of their new app and issue of having surplus inventory with and giving users a holistic view of their desktop version in 2019, CarZapp has inefficient channels to sell. Without digital business. All offers and purchases are over 600 users nationally on CarZapp connectivity, there’s a limit to the stock recorded in CarZapp, allowing users to with 30% of these users regularly and network that dealers can access, quickly and easily access all their history. logging in and buying and selling stock restricting their ability to move wholesale In a competitive industry, dealers are from organisations they wouldn’t have stock in a challenging marketplace. increasingly in need of transparency. otherwise had access to. Through our tender function, CarZapp Users are seeing higher clearance rates, gives our users the opportunity to price with over 700 cars sold on CarZapp to cars, with only the highest offer being date, making it a highly effective channel visible to the seller at the close of the for removing surplus stock. tender. This allows for a fair transaction For dealerships that are looking to disrupt to take place, and a marketplace where the traditional model and move more all users have equal opportunity to stock, more efficiently, embracing digital purchase a car. platforms isn’t just an optional extra, its With increasing competition and the fundamental in growing your dealership evolution of the industry, it will only in a changing landscape. become harder to sell vehicles at As with all industries, it will become wholesale prices. imperative for dealerships to evolve and This means it’s more important than ever update with technology to keep up with to leverage a large network of dealers – an increasingly evolving industry. with digital wholesale tools you have the Dealers across Australia can buy and ability to connect with dealers outside sell stock to an untapped network using That is until the introduction of CarZapp your network and across Australia, giving CarZapp, by simply signing up. in 2018. CarZapp is Australia’s leading you access to cars that you haven’t had For more information visit CarZapp’s dealer-to-dealer trading platform which the opportunity to buy before, and buyers website - https://www.carzapp.com.au/

14 | AUTOTALK JANUARY 2020 | www.autotalk.com.au PEOPLETALK

10 KEY FEATURES OF A HIGH-PERFORMING DEALERSHIP WEBSITE

ith 96% of car buyers saying and forms adapt for optimal they research a dealership viewing and functionality. by Gavin Cox Wonline before entering a 3. Navigation Managing Director showroom, it is blatantly clear that a high Customers want to be Adtorque Edge performing, quality website is a crucial able to get around your [email protected] element of a dealer’s marketing strategy. website and find what Despite this, however, many dealers are they are looking for quickly. still missing the mark when it comes to One way to enable this, is to SMS functionality gives customers offering customers websites that meet include a “sticky” navigation bar the ability to contact you how and their needs and encourage interaction – a menu that sits at the top of a when they want. This creates a good and engagement. website, but then follows as a user customer experience from the outset. So, what do you need in your website to scrolls down the page so that it is 8. Clicks ensure it is providing optimal opportunity always visible and accessible. Customers tend to leave a website if for you to draw in more customers and 4. Stock locators they need to click through too many sell more cars? For optimal user experience, stock pages - particularly if load speed is locators need to be custom-built, slow. Your website should navigate not embedded from a third-party’s straight to content that the user is website. Dealership stock locators likely to want, rather than requiring that are built specifically for your site them to click through multiple pages. look better and can be customised 9. Ad creative to your needs. Also, unlike third- Many customers will visit a website party stock locators, they also allow in response to an ad they have been search engines to identify car listings presented via digital advertising, individually, meaning, if relevant email marketing or print media. It's search terms are entered, your vehicle important to display artwork on the will be displayed as a search result. website that is consistent with the 5. Content current advertising campaigns that Your website needs to look different are running, to ensure the customer 1. Load speed to your competitors’. Customers do can recognise a connection between Sites must be quick to load. not want to merely see a replica the ad they saw and your website. Customers are too impatient to of another website of the same Without this, customers can become wait for large images and videos franchise, they want to see a site that disconnected and drop off. to appear on screen. They want is unique to your dealership and that 10. Customer data everything at their fingertips, speaks to their demographic. Each dealership/brand's website data immediately, and if they don’t get 6. Video and customer behaviour is different. what they are looking for on your Customers love videos. It has been It is important to be across the data site, they will move to a competitor’s found that including videos drives behind your website, understanding Load speeds also have an impact on up the amount of time people spend which pages customers are visiting search rankings, with search engines on a website. This in turn can result and where they are converting. With rating websites that load quickly, in an increase in the number of this intel, you should adapt and higher than those that don’t. leads generated. So, whether it’s optimise your website accordingly to 2. Mobile responsive manufacturer content, or dealership maximise conversion opportunities. Over 65% of customers view vehicle walk-throughs, ensure you So, with these key features in mind, I websites on their phone, so it's include video. encourage you to take the time to audit important that yours is mobile- 7. Calls to action your own website. With a few tweaks friendly. A well-built website should It's important to make it easy for a made by a reputable web provider, you respond and adjust according to the customer to log an enquiry or lead on might just find you are able to generate device on which it is being viewed, your website. Including click to call a significant increase in leads flowing ensuring that the navigation, content buttons, live chat, enquiry forms and into your dealership.

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 15 NEWSTALK

Clyde in Batemans Bay. BATEMANS BAY VEHICLE DEALERSHIPS ESCAPE FIRES

ushfires burned around Clyde Maz- da, part of the Clyde Auto Group, Bin Batemans Bay but miraculously left the dealership unscathed. It was the closest of the New South Wales South Coast town’s vehicle dealerships to the fire front which burned right up to Clyde Mazda’s edges. No buildings or vehicles appeared to be damaged, with the dealership losing power and relying on cell phones. A Batemans Bay car wrecking yard was damaged, however. People returned to work shortly after Fires rage around Batemans Bay. the fires, although some Batemans Bay residents had their homes damaged or returning to trading with just a clean up Tasmania, so losses and damage could destroyed in the New Year blazes. required, mainly because of the smoke. be even higher in value. Autohaus Select Cars was among those Flacks Auto Mart was unaffected by the The Australian tax office is reportedly fires which stopped about two kilometres not following up on tax returns in away from the dealership. bushfire areas for two years to give Many residents evacuated from the town people a chance to return to normal. have since returned, but authorities warn Celebrity fundraisers have helped the fire danger isn’t over yet. contribute millions of dollars for relief Prime minister Scott Morrison believes and recovery efforts, and messages of the fires could carry on for months and he support have come from Donald Trump, has promised aid along with a A$2 billion Prince Charles and others. injection into a national bushfire recovery New Zealand and Singapore have fund over two years. sent firefighting assistance, while other Australia has one of its worst bushfire countries like France have also offered problems on record, with more than 20 help. lives lost and at least 1700 structures Smoke from the fires has been drifting lost or badly damaged, mostly in New across New Zealand and South America South Wales where more than 6000 too, the bushfires quickly gaining world bushfire related insurance claims have attention. been lodged, expected to exceed A$700 The Australian bushfire disaster is also million. attributed to climate change and has led A Google map of Batemans Bay Insurance teams are checking affected to calls for more urgency in switching automotive dealerships. areas in NSW, Victoria, South Australia, to renewable energy, electric vehicles, Queensland, Western Australia and carbon reduction and other measures.

16 | AUTOTALK JANUARY 2020 | www.autotalk.com.au SHOWROOM

New Vehicle Industry and Product News

AUSTRALIA NOW HAS AN ELECTRIC MERCEDES

o us, the EQC means the start The results Mercedes-Benz uncovered 20 ultra-rapid charging stations will be of a new era,” Mercedes-Benz during its research proved to be very available for travel between Adelaide, Australia/Pacific chief executive enlightening. Melbourne, Sydney and Brisbane with “T For example, the age range of those who additional stations in Western Australia officerHorst von Sanden told EVtalk at the EQC’s launch event in Melbourne. had registered to purchase (and outlaid a and Tasmania. sizable deposit) was between 18 and 86 “The start of being in full electric “There is enough charging with an almost an even split between 29- vehicles in Australia for the first time infrastructure in metropolitan areas, and 59 (29-38 19%, 39-48 23%, 49-58 26%, is exciting because we have had quite if you have something at home then you 59-68 17%). some customer interest long before we get by,” von Sanden says. And “technology & innovation” led “The whole point is how much do you actually launched,” he says. “We are absolutely happy, it’s the start of the charge in “what’s important when actually drive, how much do you need something exciting and new for us.” purchasing an EQC” at 45%, sustainability to recharge. I think Australia is ready The customer interest von Sanden is second at 27%, driving experience 10% enough.” talking about [in part] is the in-depth and trendsetting at 5%. According to the research on “how many analysis they did on the 4000 potential The question: “Where are you most km do you drive each day?” Mercedes- customers that registered their interest in likely to charge your EQC?” uncovered Benz found that 37% travelled less than the EQC and, more specifically, those that some other revelations. At home 70%, 50km, 34% 51-100km, 10% 101-150km went on to register to purchase. work and public charging 7%, and and this progressively dropped with 3% “There are people that want a full-electric unsure 16%. claiming they travelled more than 400km. vehicle,” von Sanden says. For public charging in Australia, We asked von Sanden about the delay in Mercedes-Benz has partnered with launching the EQC. “Yes, of course hybrid is an alternative Chargefox, the largest ultra-rapid EV and we will continue to offer that, but “Mercedes-Benz doesn’t want to be first charging network in Australia. there is a passionate group of people at every cost,” he replies. A five-year Chargefox subscription is “We take the time to develop a product that want a full-electric car and they included as standard for EQC 400 4Matic to a level that we are comfortable with have shown enormous interest in this customers offering free and unlimited launching it and from that perspective we car and they have already ordered or charging at Chargefox ultra-rapid stations. are absolutely happy. We are confident bought them.” By the time EQC deliveries start, about Continued on page 18

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 17 SHOWROOM

New Vehicle Industry and Product News

“The whole point is how much do you actually drive, how much do you need to recharge. I think Australia is ready enough.”

Continued from page 17 “We want to make sure that the stock has more of a focus on environmental we are launching a fantastic vehicle, and we have is available where it’s needed. topics, so New Zealand is an important if that is at the expense of a year or two This is why we will basically use the market for us, a different size of course, so be it, we’re happy with that.” dealer as an agent. We need the dealer but we still learn from what happens in What about the future for EQ? - the because we still believe that you have New Zealand,” he says. division of Mercedes-Benz that’s been loyalty to a person or to a team, so “The EQC is a vehicle that we can proudly established to guide the company’s we want the customer to have a loyal launch as a true Mercedes. It ticks all transition to electric mobility. relationship to the retailer. the boxes. It’s a new drivetrain, it’s fully “Electric does not stop with normal But we want to cut out the uncertainty or electric but it’s also a full Mercedes,” von vehicles,” von Sanden says. lack of transparency by introducing a set Sanden says. “And this is why maybe “There are seven vehicles in the pipeline price and basically making all the cars it took a little bit longer to get it to this for a period until 2023 and the models that are in the country available to every stage - but we’re very proud of it. will be up and down from this one, customer. “Just to add to that, what makes it a real into the higher and lower segments, “So it doesn’t matter if you go to your Mercedes is that you can drive any other including AMG,” he says. dealer today and your dealer has a Mercedes-Benz, jump into the EQC and Mercedes-Benz Australia/Pacific media certain stock level and he doesn’t happen you don’t have to change anything you relations and public relations head Jerry to have the car you’re asking for, what do and that’s really important. Stamoulis says there are three pathways could possibly happen is he tries to sell “So you don’t need to ‘relearn’ driving. of electrification. you something else from his stock. You just jump into the EQC and drive. “One is 48-volt mild-hybrid, there’s plug-in “We are looking to make it simpler and The only thing you’re missing is the and full-electric. By 2023 everything will smoother for the customer to get the EQC engine noise and you get used to that be electrified in some way.” that they want, from the national stock.” pretty quickly.” Will this mean a move away from diesel? Is that only for the EQC? The Mercedes-Benz EQC 400 4MATIC “When you look at GLC and below, yes “At the moment, yes,” von Sanden says. is priced at $137,900 (MRLP). It is now it’s safe to say - but above that there’s “But it also gives us the opportunity to on sale and available to view in EQ still demand for a 700Nm GLE or GLS for learn and look at whether this could be a showrooms, with first customer deliveries towing or whatever you need this vehicle model down the track beyond EQ.” beginning early 2020. for.” We asked if the New Zealand market The Australasian launch event began at With the launch of the EQC in Australia, experience had assisted in any way. Mercedes-Me store/cafe in Melbourne, Mercedes-Benz has opted to handle the “New Zealand has developed a very with an initial briefing that was succinct transactions at brand level rather than at strong market share, we are quite and to the point, an introduction to dealerships. happy with our performance there,” von the salient points about the EQC 400, We wondered what prompted this move? Sanden says. including design, powertrain and ”At the moment, the thought process “In terms of the EQC there’s obviously suspension - the front axle has steel [behind this move] is that we want to big interest. I think New Zealand has springs and passive dampers with make the customer experience more always been ahead of Australia in the electric motor positioned above pleasant,” von Sanden says. terms of interest in electric vehicles. It Continued on page 19

18 | AUTOTALK JANUARY 2020 | www.autotalk.com.au SHOWROOM

New Vehicle Industry and Product News

Continued from page 18 hub, while the rear has air springs, passive dampers and the electric motor positioned below hub. Although the EQC is based on the GLC platform, it shares just 15% of its components with the popular SUV, with much of that being steering and suspension. The new EV SUV’s 4.77m long, 1.88m wide and 1.62m high body has been designed to look modern and aerodynamic but it’s also not overtly futuristic. Up front, the black panel grille bears the brand’s iconic three-pointed star below a softer more rounded bonnet. It’s large multi-beam LED headlights are connected via a near full-width LED light bar, while to the lower corners, side air scoops channel airflow to the EQC’s specifically designed halo-ringed 20” adult occupant protection and 92% for child alloys (or 21-inch option). occupant protection. That represents the Aerodynamically, the EQC boasts a highest-ever adult occupant score for an 0.28Cd drag coefficient that’s been electric car and the equal highest-ever child optimised with regressive roof tilt towards occupant score of any car. the rear, a prominent roof spoiler for Regenerative braking levels are managed improved flow and a smooth underbody or controlled via steering wheel paddles. allowing for unhindered air flow. At Upon start-up the EQC begins in drive the rear, LED lighting and another LED with a more natural brake bias. Paddle up full-width light bar grabs much of the to D+ and the EQC offers virtually zero attention, with the tailgate granting motor braking, D- moderate braking and access to 500L of seat up luggage space. D - offers full regen. The interior is unquestionably modern This new Mercedes-Benz EV is powered Mercedes-Benz but with subtle nods by two 150kW electric motors generating to its electrical evolution. It has leather a total of 300kW of power and 760Nm of luxury and exposed stitching throughout, torque. Generally speaking, when you’re however, the air vents have a copper driving around town, the front motor is wire inspired insert design with circuit- the one that’s engaged for everyday board surrounds. Dual 10.25-inch display driving, but if you’re asking more of the screens that are touch, pad and voice car in dynamic, both motors are engaged. controlled and come complete with the It comes with an electric drivetrain, latest MBUX iteration. direct drive, fixed ratio transmission for Those that have been inside any each axle, that offers smooth and linear current Mercedes-Benz vehicle will find acceleration and improved efficiency - it all instantly familiar, but one point of 0-100km/h is 5.1 seconds. particular interest is the “range cloud” The 405-volt output, 80kWh (usable) that overlays your vehicle’s range on to lithium-ion 625kg battery forms part the EQC’s navigation screen as a cloud. of the EQC’s floor, providing a low It’s real time, based on your current centre of gravity and comes with an driving performance. eight-year/160,000km warranty, while a As expected, the EQC is a front runner in three-year, unlimited-kilometre vehicle terms of safety and driver’s aids. Attention warranty applies to all other items, with assist, pre-safe plus, pre-safe sound, annual servicing intervals. active parking assist, active blind spot Energy consumption for the EQC is rated assist, evasive and active steering assist, at 21.4kWh/100km. With a full charge multibeam LED, active distance assist on board, the EQC can travel between distronic, active brake assist - to name but top-ups for up to 434km (ADR) or 353km a few. WLTP. Charging 110kW DC/7.4kW AC. Plus, in the new EQC 400’s five-star Type 2 AC charging 4km/30minutes via a Australasian New Car Assessment Program domestic socket, CCS DC 220km/30mins (ANCAP) safety rating, it scored 96% for via ultra-rapid charge.

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 19 STATSTALK TOP 10 BRANDS

NEW VEHICLE SALES STILL DROPPING 1. 205,766 he lowest annual vehicle sales result in During the announcement of the 2019 sales nine years has been recorded by the results, the FCAI notes further improvements TFederal Chamber of Automotive Indus- to the VFACTS data tries (FCAI). recording system. It reports 1,062,867 new vehicles were sold “Like any data in 2019, a 7.8% decrease on 2018. platform, continuous And 84,239 sales for the month of December improvement is a key 2019 were down 3.8% on December 2018 requirement,” Weber (87,528), the FCAI says in its VFACTS says. statistical service. “For this reason, we The 2019 figure is the lowest annual sales have instituted a result reported in VFACTS since 2011. further confirmation on Tony Webber “First and foremost, and on behalf of the entire data presented to the 2. MAZDA 97,619 automotive industry, the chamber would like VFACTS system from our members. This data to offer our condolences to those affected by is, as necessary, verified against the national the devastating bushfires that have ravaged registration data base and, when confirmed, Australia over the past weeks. Our thoughts vehicles are accepted into the monthly and prayers are with them,” FCAI chief VFACTS reporting system.” executive Tony Weber says. Only two areas saw increases in new vehicle “Regarding the actual new vehicle sales sales in December 2019. results; 2019 reflects a tough year for the New South Wales recorded 26,863 vehicles Australian economy, with challenges including sold – up 1.4% on December 2018. tightening of lending, movements in exchange Tasmania had a 7% increase – 1839 sales rates, slow wages growth and, of course, the in December 2019 compared with 1719 in extreme environmental factors our country is December 2018. 86,104 experiencing.” All other states and territories recorded sales 3. HYUNDAI Weber notes the continuing adjustment for declines, the worst being the ACT with a motoring consumers, with the 2019 year 16.5% drop (1348 in December 2018 to 1125 in seeing a further shift to SUV sales which now December 2019). hold 45.5% of the total market, a 2.5% point Victoria recorded 24,255 new vehicle sales increase from 2018. in December 2019, down 5.7% on December Continuing the full year comparison, light 2018’s 26,498. commercial vehicle share grew by 0.6% points Key points: to claim 21.2% of the market, while passenger • The December 2019 market of 84,239 motor vehicles decreased by 3.1% points to new vehicle sales is a decrease of 3289 29.7%. vehicle sales or -3.8% on December While holding the largest share of market, 2018 (87,528) vehicle sales. December sales of SUVs declined for full year 2019 by 2019 had the same number of selling 4. MITSUBISHI 83,250 2.4% compared to 2018, sales of passenger days (24.0) as December 2018 and this vehicles declined by 16.5% and sales of light resulted in a decrease of 137 vehicle sales commercial vehicles declined by 5.2%. per day. The Toyota Hilux is the top selling vehicle in • The passenger vehicle market is down 2019 across all categories, with 47,649 sales. by 4569 vehicle sales (-16.9%) over the The Ford Ranger follows with 40,960 sales, same month last year; the sports utility then the Toyota Corolla (30,468), the Hyundai market is up by 2232 vehicle sales i30 (28,378) and the Mitsubishi Triton (25,819). (5.9%); the light commercial market is Across the brands, Toyota led the market in down by 746 vehicle sales (-3.8%); and 2019 with 19.4% market share, followed by the heavy commercial vehicle market is Mazda (9.2%), Hyundai (8.1%), Mitsubishi (7.8%) down by 206 vehicle sales (-6.0%) versus and Ford (6.0%). December 2018. 5. FORD 63,303

20 | AUTOTALK JANUARY 2020 | www.autotalk.com.au Continued p21 TOP 10 TOP 10 BRANDS CONTINUED COUNTRIES LIGHT UNDER $25K

1. JAPAN 1. TOYOTA YARIS 26,409 1,048

2. THAILAND 2. VOLKSWAGEN POLO 6. KIA 61,503 21,452 516

3. KOREA 3. KIA RIO 10,936 455

4. GERMANY 4. SUZUKI SWIFT 6,476 443 7. NISSAN 50,575

5. USA 5. MG MG3 3,697 362

6. OTHER 6. SUZUKI BALENO 2,607 360 8. VOLKSWAGEN 49,928

7. ENGLAND 7. MAZDA2 1,971 258

8. CHINA 8. JAZZ 1,502 256 9. HONDA 43,868

9. MEXICO 9. HYUNDAI ACCENT 1,315 150

10. HUNGARY 10. HONDA CITY 1,154 44 10. HOLDEN 43,176

Continued p21 AUTOTALK JANUARY 2020 | www.autotalk.com.au | 21 STATSTALK CAR CLIMATE CHANGE – ICE MELTS iesel and petrol power continue to crash in most categories as Delectric and hybrid vehicles find growing favour at the expense of internal combustion engine (ICE) equivalents. The continuing trend is confirmed by the latest VFACTs figures from the Federal Chamber of Automotive Industries (FCAI). New vehicle sales by buyer and fuel type show massive rises in interest for December 2019 and year-to-date (YTD) totals in the electric/plug-in hybrid (PHEV) and hybrid categories. Electric/PHEV sales in the private passenger sector, for instance, soared 141.2% in December 2018 to December Electrics like the Tesla Model 3 continue to make inroads. 2019 comparisons (17 to 41) and 102% YTD (245 in 2018 to 495 in 2019). Hybrids continue to rocket ahead in all In the private SUV market they go The jump is also marked in the SUV the categories in which they feature. up more than 999% in December category, with private SUV sales Private passenger hybrid sales go comparisons (44 in 2018 to 706 in 2019) rocketing 156.5% (23 to 59 in December from 488 in December 2018 to 683 in and 730.9% YTD (654 in 2018 and 5434 EV/PHEV comparisons) and 309.2% YTD December just gone (up 40%) and from in 2019). (195 in 2018 to 798 for 2019). 4101 in 2018 to 6786 in 2019 (65.5%). The non-private SUV segment sees Non-private SUV sales of electrics and It’s a similar story in the hybrid non- hybrids go from 81 in December 2018 to PHEVs also went up 163.3% (30 to 79) in private passenger sector. Here hybrids 555 in December 2019 – up 585.2%, and the monthly comparison and 109.9% YTD climb 49.6% in December comparisons from 946 YTD in 2018 to 3946 (up 317.1%). (495 to 1039). (1087 to 1626) and 67.8% YTD (8627 in Electric/PHEVs show little change in A more modest rise shows in the non- 2018 to 14,475 in 2019). the light commercial categories – none private passenger EV/PHEV category, Hybrids record even bigger jumps in the recorded in the private sector during going up 13.8% in December comparisons SUV categories. December 2019 as against just two (29 to 33) and 41.1% YTD (401 to 566). in December 2018 and the same result applying in annual NEW VEHICLE SALES BY BUYER TYPE AND FUEL TYPE DECEMBER 2019 comparisons. In the non-private sector that went from zero in Month YTD Variance +/- Vol. & % December 2018 to just one in Total Market 2019 2018 2019 2018 MTH YTD MTH YTD December 2019 – YTD totals ELECTRIC/PHEV showing a lift from 14 in 2018 to 27 in 2019 (up 92.9%). Passenger Private 41 17 495 245 24 250 141.2% 102.0% Interestingly, hybrids are Passenger Non- 33 29 566 401 4 165 13.8% 41.1% outgunning diesel in the Private passenger market, the latter SUV Private 59 23 798 195 36 603 156.5% 309.2% recording 177 December 2019 SUV Non-Private 79 30 1,039 495 49 544 163.3% 109.9% sales (against 683 for hybrids) in Light Commercial the private area and 387 diesel 0 2 0 2 -2 -2 -100.0% -100.0% Private sales in the non-private category Light Commercial 1 0 27 14 (1626 hybrids). Non-Private But the reverse is true in the Sub Total 213 101 2,925 1,352 112 1,573 110.9% 116.3% SUV market, with petrol still the HYBRID preferred fuel there and diesel next. Passenger Private 683 488 6,786 4,101 195 2,685 40.0% 65.5% Diesel is the fuel of favour in the Passenger Non- 1,626 1,087 14,475 8,627 539 5,848 49.6% 67.8% light commercial market with Private electric and hybrid equivalents SUV Private 706 44 5,434 654 662 4,780 >999% 730.9% yet to come out or take hold. SUV Non-Private 555 81 3,946 946 474 3,000 585.2% 317.1% Another market where few fuel Sub Total 3,570 1,700 30,641 14,328 1,870 16,313 110.0% 113.9% alternatives are available is the heavy commercial sector, sales TOTAL 3,783 1,801 33,566 15,680 1,982 17,886 52.4% 114.1% dropping slightly there.

22 | AUTOTALK JANUARY 2020 | www.autotalk.com.au HIGHLIGHTS OF THE MONTH

Female Toyota technician wins top award

A Queensland woman has become the first woman in the world to win the Technician Champion award in Toyota’s national skills competition. Natasha Smith, 22, is this year’s category winner. Smith com- peted her Toyota network training apprentice ship in February this year after graduating in three and a half years, instead of the usual four. The Motorama Toyota technician says it was a surreal experi- ence to be crowned winner at not only a national level, but also to be the first woman to win the category on a global level. “Knowing the quality of skills of the guys I was competing against was very high, wining the category title is an incredible achievement that will stay with me for the rest of my life,” Smith says.

Buttner out at Holden M Holden chairman and managing director David Buttner has stepped down from his role after just 16 months. TheG former Toyota Australia boss has overseen a period that has seen a sales slump for the former market leader. The leader of GM Holden’s commercial operations, Kristian Aquilina, has been appointed interim chairman and managing director. Op2ma lands major financier

Adelaide-based automotive solutions provider Op2ma has landed a major contract with a global financier based out of South Africa. Car carrier turned away from Due to contractual obligations they can’t name the customer. Op2ma, a subsidiary of Fusion Business Solutions, supplies a Australia due to stink bugs range of solutions to automotive clients, including global OEMs, The Orca Ace cargo ship carrying more than 3500 cars and auto financiers, insurers and auto dealers. heavy machinery has been refused entry into Australia because EasyCars and Drive On Finance to of stink bug infestation. Agriculture minister Bridget McKenzie says the vessel was offer new dealer finance solution refused entry in an effort to protect Australia’s agricultural crops and horticulture. EasyCars, a web-based dealer management system, has “Just as concerning is the impact these bugs can have on all of partnered with Drive On Finance to automate finance deals for us—they are a real headache for residents creeping into homes dealerships across Australia. when the weather gets cooler, letting off an unpleasant smell The finance module has been integrated in the EasyCars DMS and they’re hard to kill. and provides access to 29 lenders. “Australia’s biosecurity import requirements are science based, Dealers can track the progress of a finance application in real- clear and non-negotiable. Our international reputation as a time, improving its communication with customers. source of safe, clean and green food and fibre for the world relies on our pest and disease free status.

AUTOTALK JANUARY 2020 | www.autotalk.com.au | 23 HIGHLIGHTS

CNH Industrial company, CASE IH. With a natural personal affin- ity for the rural communities, this new role will see him recon- necting with the farming community and New Holland’s exten- sive range of agricultural products; from tractors and combine harvesters to balers and hay tools.

Auto Innovation Centre open for business

The Australian Automotive Aftermarket Association (AAAA) has officially announced the opening of the Melbourne-Based Auto Innovation Centre (AIC). The establishment of two Auto Innovation Centres, in Victoria and South Australia will support automotive parts manufac- turing in Australia. The state-of-the-art facility in Mulgrave, Melbourne will assist Australian manufacturers in continuing to develop their world-class products. Fiat-Chrysler and Peugeot agree to Senator Rex Patrick officiated at the ribbon cutting ceremony merge to officially open the AIC facility on December 12. He addressed the audience on the importance of a facility such as the AIC that Fiat Chrysler Automobiles (FCA) and Groupe PSA (Peugeot SA) will support the Australian automotive and manufacturing sector have agreed to a 50/50 merger. and the aftermarket companies, contributing in a meaningful The new entity which is yet to be named will be the 4th larg- way to the economy. est global OEM by volume and 3rd largest by revenue with annual sales of 8.7 million units and combined revenues of nearly €170 billion. The merger will create a diversified business with among the highest margins in its core markets of Europe, North America and Latin America and the opportunity to reshape the strategy in other regions. It will deliver approximately €3.7 billion esti- mated annual run-rate synergies with no plant closures resulting from the transaction. ASIC to take Volkswagen Financial Services Australia to court

Michael May The Australian Securities and Investments Commission (ASIC) says it has started civil penalty proceedings in the Federal Court of Australia against Volkswagen Financial Services Australia Pty (Volkswagen FSA) for allegedly breaching responsible lending May taking the helm at Iveco laws. Trucks Australia and New Zealand Volkswagen FSA operates nationally to provide borrowers with consumer loans to purchase new and used cars. Former Mercedes-Benz Australia Pacific Truck and Bus director ASIC alleges that between December 20, 2013 and December 15, 2016, Volkswagen FSA contravened some of the responsible Michael May has been announced as the new managing direc- tor for Iveco Trucks Australia Limited from early 2020. lending provisions in the National Consumer Credit Protec- tion Act 2009 (National Credit Act) in relation to 49,380 loan May replaces Bruce Healy who was the managing director contracts. for Iveco Trucks Australia and New Zealand from early 2018. Volkswagen Financial Services Australia says it takes its compli- Healy has accepted the role of Brand Leader of another CNH ance obligations seriously. Industrial division – New Holland Agriculture. Healy previously held the position of Brand Leader with another “We acknowledge ASIC’s statement of claim and have been cooperating with ASIC on matters arising from 2013 to 2016.”

24 | AUTOTALK JANUARY 2020 | www.autotalk.com.au