OFFICIAL PUBLICATION OF AADA | SEPTEMBER 2017 | ISSUE 20.5 SPECIAL POST CONVENTION UPDATE EDITION POST- CONVENTION UPDATE AADA ANNOUNCES POWERFUL DATA MAPPING TOOL A NEW ERA IN ADVOCACY AUSTRALIA'S DEALERS COME TOGETHER FOR AADA 2017 ASIC ON THE SALE OF ADD-ON INSURANCE AND WARRANTIES MASSIVE RISE IN AUTOMOTIVE ADVERTISING THE CHANGING LANDSCAPE OF PROFITABILITY
www.automotivedealer.com.au PRINT POST 100019106 Craig Lowndes, TeamVor tex
The # 1 choice of TeamVortex and 40,000 other businesses
Make it Yours
1300 362 415
mtaasuper.com.au 06/17
2017 Conexus Financial Superannuation Awards Medium Fund of the year
The Conexus Financial Superannuation Awards are determined using proprietary methodologies. Awards were issued March 9, 2017 and are solely statements of opinion and do not represent recommendations to purchase, hold, or sell any securities or make any other investment decisions. Ratings are subject to change. This document is issued by Motor Trades Association of Australia Superannuation Fund Pty. Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty. Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited. The information provided is of a general nature and does not take into account your specifi c needs or personal situation. You should assess your fi nancial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed fi nancial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.
MTAA Super_Magazine ad_Craig_Lowndes_Conexus_210x297_201706_FA.indd 1 27/06/2017 4:29:01 PM WELCOME Australian Automotive Dealer Association
CONTENTS ISSUE 20.5 | SEPTEMBER 2017
WELCOME From The AADA Chairman...... 4 CONTACT AADA From The AADA CEO...... 4 P.O. Box 4530 POLICY Eight Mile Plains, QLD 4113 AADA Announces Powerful Data Mapping Tool: New Era In Advocacy For New Car Franchised Dealers...... 5 CONTACT AUTOMOTIVE DEALER ASIC On The Sale Of Add-On Insurance And Warranties Level 1, 350 South Rd Through 'Caryard Intermediaries'...... 6 Hampton East, VIC 3188 AADA Welcomes Decision On Private New Car Imports...... 7 ACCC New Car Retailing Study Ready Before Year End...... 8 Issue No. 20.5 | SEPTEMBER 2017 AADA Secretariat Strengthened With Two New Executives...... 9 PUBLISHER: AADA FEATURES $15.9M Add-On Insurance Refund...... 13 MANAGING EDITOR: Luke Prendergast Massive Rise In Automotive Advertising...... 14 PRODUCTION MANAGER: Stace Nagle The Rise (And Fall) And Rise Of Luxury Vehicle Sales...... 15 Class Action Launched After Takata Debacle Claims Aussie Life...... 16 ART DIRECTOR: Nick Murphy Sydney To Trial On Demand Transport Services...... 17 Kia Tops J D Power Survey...... 21 ADVERTISING MANAGER: Geoff Vine Incentivise For Profit, Not Turnover...... 22 [email protected] Join Our Study Tour To NADA 2018...... 24 Mobile: 0413 854 779 Electric Super Highway For Queensland...... 25 Phone (03) 9576 9944 | Fax (03) 9576 7277 US Automakers Unite To Fight Counterfeits...... 26 Manufacturing Fund To Bring Australia Into 21st Century...... 27 AUTOMOTIVE DEALER Renault-Nissan Alliance Top Electric Vehicle Maker...... 28 DELIVERY/CHANGE OF ADDRESS Fleet Management Now A Profession...... 28 (03) 9576 9944 or Kangaroos Throw Off Driverless Cars...... 29 [email protected] Big Advance For Wireless Charging Of Electric Cars...... 30 EDITORIAL British Report Sees Billions In Digital Manufacturing...... 32 [email protected] Mercedes-Maybach Launch New Luxury Electric Concept...... 33 Volvo To Go Fully Electric By 2019...... 34 EDITORIAL & ADVERTISING OFFICE Record Sales Months In July, August...... 35 Lvl 1, 350 South Rd, Hampton East, VIC 3188 3D Scanner To Improve Tyre Safety...... 36 5 Things Top Sales Performers Do In 2017...... 37 Fiat Chrysler Joins BMW Autonomous Development Group...... 38 No responsibility is accepted by the publisher Petrol Too Expensive In Cairns...... 39 for the accuracy of information contained AHG MD Positive Despite Performance...... 40 in advertisements in the Automotive Dealer Autosports Group Buys BMW Melbourne...... 41 magazine. Publication of any advertisement does Overhaul Marketing Strategy: Expert...... 42 not constitute endorsement by the publisher Nissan Australia's New Managing Director...... 43 of any product, nor warrant its suitability. Advertisements are published as submitted by Prius Turns Twenty...... 44 advertisers. 2017 AADA NATIONAL DEALER CONVENTION & EXPO FEATURE More Than 800 Attend One Of Our Best Conventions Ever...... 10-13 COPYRIGHT What Is Your Competitive Advantage?...... 47 No part of this magazine may be reproduced Erapower – Take A Fresh Look...... 49 without the publisher’s written permission. Dealers Around The Globe Winning The Battle For Post-Sale Loyalty...... 51 CONTRIBUTORS Customers Come First At Motorone...... 53 The views expressed in Automotive Dealer by Ricciardo Drives Carsales’ Unique Audience To 2,000,000-Plus, 2017 High...... 55 external contributors and advertisers are not Allianz 'A' Party...... 57 necessarily those of AADA. Snap21 Now With Google Reviews: Not Just A Review Platform...... 59 The Future With Eric Genesis...... 60 Fuchs: Lubricating Australia...... 61 AUSTRALIAN Full Synthetic Engine Oils: Why Are There So Many Different 5W-30S? ...... 62 @AADA_ASN AUTOMOTIVE DEALER ASSOCIATION MOTORSPORT If You Are Into Cars Then The Woodward Dream Cruise Has To Be On Your Bucket List.....18-19 WE’D LIKE TO HEAR FROM YOU. We’d like to hear from you about what’s been schools, supporting junior sporting clubs or It’s a pity that the community work being happening at your dealership that you think sponsoring a charity event. done by Dealers is a well-kept secret. We could be worth passing on to our readers. intend to change that. AADA is determined We would like to know. to generate a greater respect for new car It can be anything from a unique sale, a fleet franchise Dealers as compassionate business deal or a story about a member of your staff Whatever the story you have, it will be good people. Part of our strategy is to remind the who recently accomplished a notable feat. reading. Send us the information and key media, politicians and opinion makers that, contact details and we will follow it up. If you by employing over 66,000 people, AADA It could be a ‘feel good’ community initiative have photographs of the endeavour so much members make a substantial contribution to you have undertaken involving local the better. the Australian economy. WELCOME Australian Automotive Dealer Association
FROM THE AADA CHAIRMAN
We have been referred to as ‘caryard shonks’; to what our industry contributes to the national we have been accused of appalling behaviour economy. They will listen and be amazed, Terry Keating ripping off consumers by making a whopping because right at this moment they have no idea. AADA Chairman 64 per cent profit on service and telling And for those politicians who are holding their consumers they can only have their new car seats by a thread, they will be the first to pay serviced by a franchised Dealer. attention.
emember the movie ‘Network’ when Fortunately our CEO, David Blackhall, has been I don’t want you as individuals to rush off to television news anchor, Howard Beale, able to personally deliver facts to the regulators the media and tell them what great people we Rplayed by Peter Finch, told his viewers to and government ministers, but the media don’t are. The Secretariat will handle this and make open their windows and shout, “I’m as mad as want to know the real facts because they don’t it known to everyone who counts that we hell and I’m not going to take this any longer”? generate good headlines. are ethical business people with over 60,000 employees; we pay nearly $2 billion in taxes and He was mad about the state of the economy, I believe we can rectify this situation together contribute around two per cent to the national lawlessness and human values and saw no by dealing in facts and communicating to the economy. corrective solution in sight. right people. It’s not going to happen overnight, but we will win. You have already heard about Much of the unfounded criticism has emerged Within minutes, hundreds of thousands of the Electorate Fast Facts (EFF) tool we have from unsubstantiated research that implies two people opened their windows and shouted been working on and I am delighted to say this thirds of new cars have serious problems. That Beale’s lines. program will be unveiled at the Convention. says to me that some 800,000 cars sold each It is the most powerful management and Like Beale, I am as mad as hell about our year are defective – and if you believe that you community involvement program I have ever reputation being trashed by so-called informed believe in the tooth fairy. seen. And it’s free to you. commentators, consumer groups, regulators Let’s work together to put an end to this and the media creating sensational headlines As a group, we can meet with every Member of nonsense. under the poetic licence of ‘don’t let the facts get Parliament and talk facts and figures in relation in the way of a good yarn’.
FROM THE AADA CEO
complex paper to reform the sale of add- a Minister and his team being willing to David Blackhall on insurance and warranties are both engage in productive consultation to guide continuing to require significant attention the wisest decision. AADA CEO from the Secretariat. These issues generated their unfair share of sensational media Our Membership Survey has recently been coverage, some of it seriously misinformed. completed and we are presently analysing he frenetic pace of regulatory and In the most egregious cases we wrote to the the detailed results. We will cover the government reform over the last editors of the publications to put the record highlights at the Convention, but I am Tcouple of months is a clear signal that straight. Not a surprise that our comments pleased to say indications are that we are on life as a franchised new car Dealer is likely received no exposure. the right track. to continue to be ‘interesting’, to say the Finally, with the Convention only a matter very least. After extensive analysis of the ACCC Retail Study discussion draft we delivered, on of days away I want to remind you that Our small team has been dealing with 17 September, our second response to the ACCC Chairman, Rod Sims, will deliver the well-documented issues from the ACCC, ACCC. The next phase is an industry Round opening address at the Auto IT Convention ASIC, the Attorney General’s Department, Table hosted by the ACCC, which we will breakfast. Mr Sims has agreed to answer Treasury, Small Business, the Department of attend on 25 September. We will of course questions from our members, so please Infrastructure and Regional Development update you appropriately as to the outcome take advantage of this great opportunity and a range of State authorities as well. The of these discussions. and submit your issues using the process action is relentless and while the year may outlined in our separate bulletin. Our persistence debating our case not to be fast drawing to a close, it is far from over, I look forward to seeing you all at Darling with a lot more business to get through. allow private new car imports from the UK and Japan finally paid off when the Turnbull Harbour bright and early on 19 September. government decided to permanently shelve The ACCC Discussion Draft on the Retail Good luck and good selling. Car Industry Market Study and ASIC’s the idea. This was a classic example of
4 | SEPTEMBER 2017 | automotivedealer.com.au POLICY Australian Automotive Dealer Association AADA ANNOUNCES POWERFUL DATA MAPPING TOOL: A NEW ERA IN ADVOCACY FOR NEW CAR FRANCHISED DEALERS
unique mapping tool that allows important economic role new car franchisees to a dot point when the three local assemblers franchised new car Dealers to display fulfil in their electorates and communities. decided to call stumps. The EFF tool puts Athe vital economic contributions the lie to that. It drills down from the 60,000 made by their businesses to individual This unique tool was developed by BDO’s national automotive retail jobs to, for example, federal electorates and associated Automotive Team in conjunction with the the 388 jobs our Dealers create in the Prime communities will be launched at the AADA AADA Secretariat and IT supplier, IndieTech. Minister’s electorate of Wentworth (see below). National Convention at Darling Harbour This tool will substantially contribute to the AADA CEO, David Blackhall, said the later this month. AADA’s ability to help Dealers advocate on objective is to increase awareness by their own behalf at the grass roots level. It will Members of Parliament of the economic Called Electorate Fast Facts (EFF)©, the also continue to build AADA’s reputation as contributions new car franchisees make to interactive tool can be used to retrieve a the leading automotive advocacy and policy their communities by presenting politicians range of data on employment, total economic body in Australia,” Mr Blackhall said. contribution, taxes, duties, wages and salaries with facts that have never been mapped in this and other payments made by new car Dealers level of detail before. Franchised new car Dealers who are members in each of the 150 federal electorates. The of AADA will be provided with access to the “There is a notion abroad in some corridors data mapping means Dealers can present EFF free of charge. in Canberra that the importance of the the information to Members of Parliament Australian automotive business disappeared in a readily digestible form to illustrate the
Wentworth Electorate
automotivedealer.com.au | SEPTEMBER 2017 | 5 POLICY Australian Automotive Dealer Association ASIC ON THE SALE OF ADD-ON INSURANCE AND WARRANTIES THROUGH 'CARYARD INTERMEDIARIES'
SIC released Consultation Paper A major concern for franchised new car (b) include information about each type of 294 (CP 294) on 24 August 2017, dealerships is ASIC’s focus on the motor add-on product being offered through Aseeking feedback from insurers, vehicle dealership channel, even though the car dealership (e.g. in a standardised credit providers, car Dealers, insurance these products (or similar products) are format), and how they interact with and finance brokers, consumers, consumer distributed through other channels (e.g. other elements of the transaction representatives and other parties on proposals auction houses that sell cars and entities (c) provide information to consumers that to reform the sale of add-on insurance and specialising in novated leasing, salary is accessible and addresses different warranties through car dealerships. packaging and warranties). This channel- levels of comprehension or financial specific approach, rather than a product- literacy, and ASIC’s consultation paper proposes: specific approach, is discriminatory (d) make use of innovative techniques towards Dealers and results in a market to deliver this information to the • Proposal 1: A deferred sales model to distortion in favour of other entities. provide consumers with additional time consumer. Proposal 1: Deferred sales model to consider whether they need to buy Proposal 2: Enhanced supervision add-on insurance or warranties. The AADA is examining the key design features obligations for product providers proposal is that a period of between of a deferred sales model. ASIC proposes ASIC proposes to introduce specific four to 30 days must elapse before car behavioural restrictions on insurers, caryard requirements for the supervision and dealership intermediaries can sell such intermediaries and consumers during the monitoring of a provider’s authorised products. deferral period. representatives, based on the risk for • Proposal 2: Enhanced supervision Commencement of the deferral period consumers in the dealership distribution channel, and has asked the following obligations on insurers over their car Thedeferral period could commence when questions: dealership sales people to supervise the consumer: and monitor their authorised (a) What changes would be necessary (a) receives a consumer communication representatives selling such products. to ensure providers are effectively (with mandated content) supervising their representatives? Theproposals do not apply to comprehensive (b) finalises the vehicle purchase and (b) What risk indicators could be or compulsory third party (CTP) insurance receives the consumer communication, introduced to improve the capacity products. or of providers to monitor their ASIC continues to use the term ‘caryard’, the (c) takes delivery of the vehicle and representatives? meaning of which is a place where cars are receives the consumer communication. (c) What sanctions would be most effective displayed in an outdoor area. This ignores the Duration of the deferral period in deterring representatives from multi-million dollar investments required of engaging in unfair practices at the point franchised Dealers (by manufacturers and ASIC proposes that the total duration of the of sale? distributors) in enclosed retail outlets and deferral period for add-on products (except service facilities, both of which enhance the for warranties) could be a: The AADA working group is looking customer purchase experience. to address ASIC’s proposals in a way (a) minimum of four days, and that ensures a level playing field across Your AADA secretariat and a working (b) maximum of 30 days. all distribution channels and results in committee of Dealers have been examining minimal disruptions and decision making the ASIC proposals and associated 26 ASIC proposes a different deferral period for a customer, who should be given an questions to meet the deadline of 23 October. for mechanical breakdown insurance and opportunity to voluntarily opt out of the warranties. ASIC’s regulatory intervention will have a deferred sales process. significant financial impact on a dealership Consumer communication Your comments on the ASIC proposals are business model and a number of dealerships ASIC proposes that the consumer important to us and should be forwarded to have already revised their revenue forecasts. communication should: the AADA secretariat. AADA does not represent motorcycle dealerships, where the financial impact on (a) address the current limitations in their business models could be greater. consumers making informed decisions
6 | SEPTEMBER 2017 | automotivedealer.com.au POLICY Australian Automotive Dealer Association AADA WELCOMES DECISION ON PRIVATE NEW CAR IMPORTS
he Australian Automotive Dealer For example, unsuspecting buyers could be granted every citizen a licence to import a car Association (AADA) has welcomed the victims of odometer fraud. They might, in good every two years, not everyone would want to do TTurnbull Government’s decision not to faith, purchase a car in London not knowing its this. proceed with allowing personal importation of history and certainly not knowing if the odometer new vehicles from the UK and Japan. reading is correct. They don’t know if the car has Enter the entrepreneur. The entrepreneur offers been rebirthed and it’s actually far from what they people, say, $1,000 for their import licence and AADA CEO, David Blackhall, said the outcome believed they bought. The risks far outweigh the secures enough licences to fund a shipload of cars highlights the careful consideration and hard work opportunities. from Japan then sells them in Australia for a very by the Minister for Urban Infrastructure, the Hon healthy profit. That kind of practice would do Paul Fetcher MP, and his dedicated policy team. The opportunities for money laundering would untold damage to the franchise channel. be increased. A plausible scenario is a drug dealer “The AADA has been in close consultation with with half a million dollars, undeclared, in his Minister Fletcher stated that considering the Minister Fletcher since the proposal to allow new bag. He flies to the UK, connects with known modest benefits of personal import arrangements, car imports was first mooted,” Mr Blackhall said. criminals, buys a car with false paperwork, brings including price reductions estimated to be less than two per cent across the market, the benefits “We have sincerely appreciated the Minister’s the car back to Australia under the Government’s legitimate scheme and sells it for $200,000. He just do not justify the cost and complexity that would willingness to engage in productive consultation be involved in such a scheme. and to understand the many risks to consumers laundered $300,000! that such a plan might entail.” A third scenario is about syndication that could The decision is incorporated into a new Road Vehicle Standards Bill that will be introduced into Mr Blackhall said the decision closes the door on a easily have become a business bonanza. It works this way. Because the Government would have the Parliament before the end of this year, taking number of fraudulent activities there for the asking. effect by 2019.
German Technology. Australian Commitment. AUSTRALIAN FUCHS FACTS 96% of products sold in Australia are manufactured in Australia 2 local world class production plants and laboratories A full range of over 1,500 lubricants and related specialties
160 employees
LUBRICANTS. TECHNOLOGY. PEOPLE. PH 1800 1800 13 fuchs.com.au POLICY Australian Automotive Dealer Association ACCC NEW CAR RETAILING STUDY READY BEFORE YEAR END
ecommendations and proposals to based on dubious statistics that would not were wanting to help resolve issues, emerge from the ACCC’s New Car pass muster at a first year stats class in any but were prevented from doing so by RRetailing Industry Market Study will reputable university.” maladroit administration of warranty be tabled before the end of this year. and repair policies on the part of some “The other headline grabber rolled out by manufacturers.”, Mr. Blackhall said. It is expected to be made public soon after the media – that consumers can only have an industry round table, with invited key their new cars serviced by a franchised To quote from the draft study, it basically stakeholders including the Australian Dealer – left consumers further confused. confirmed the AADA’s position, saying Automotive Dealer Association. that given the nature of commercial “We have never said that,” he said. Our relationships between Dealers and “ACCC Chairman, Rod Sims, will no members are clear that consumers have manufacturers, Dealers are frequently in doubt provide some insight on the choice and they make no attempt to restrict the challenging position of balancing their findings when he delivers his opening that choice – but at the same time there Australian Consumer Law obligations address at the AADA Convention Auto IT is a clear contract between the customer to customers, safeguarding their own breakfast, and he has also agreed to answer and the manufacturer spelled out in their financial interests and maintaining a long- questions without notice at the conclusion warranty terms and conditions. If you term commercial relationship with their of his address,” said AADA CEO, David inadvertently breach those contract terms manufacturer. Blackhall. as a result of something an incompetent repairer does then of course there can be These commercial arrangements can Mr Blackhall said the first draft ACCC consequences. have the effect of denying or making it Report released in August generated difficult for consumers to readily access the spirited debate that created sensationalised “A draft recommendation to introduce a remedies to which they are entitled. reporting by some media outlets who might mandatory scheme for car manufacturers have done better to check their facts before to share technical information with “Another major concern for us, and what pillorying an entire industry. The biased independent repairers on ‘commercially consumers should be aware of in any ‘open headlines were in many cases promoted by fair and reasonable’ terms is not defined at slather’ approach, is that only NSW and industry and consumer organisations with all in the draft. WA require automotive repairers to be preconceived agendas. It created confusion qualified, which means that everywhere among consumers and, despite our “We have made it abundantly clear to else in Australia you can hang out a shingle objections, journalists and editors elected the regulator that we have no objections and call yourself a specialist in repairing not to deliver balanced views on the debate. to sharing any information providing all all makes and models, which is ludicrous,” players bear the same costs – the level he said. “The media grabbed onto Chairman Rod playing field approach. Sims’ quote that Dealers were making “Almost 60% of the 27,000 independent excessive profits on service to the tune of “Our Dealers have incurred substantial repairers in Australia operate in markets where 64 per cent. He was quoting a gross figure, investments in tools, equipment, facilities there is no mandatory licensing of mechanics. not a net figure, but this fundamental and training to ensure vehicles are We recently saw a NSW government cabinet difference was lost on journalists and properly maintained and serviced, and if minister withdraw a policy proposal to allow consequently fell on deaf ears. It makes independent repairers wish to have access unqualified people in independent garages me wonder what level of financial literacy to the market we serve then they need to remove and replace airbags – a good example exists at some mastheads when this kind of make the same investments, buy the same of common sense prevailing to avoid serious rubbish gets through the editorial process. equipment, do the identical training. It’s as risk of consumer harm. simple as that. “A media release headed ‘New Car Industry AADA continues to work closely with Put On Notice’, issued by the ACCC, stated “Unfortunately, in relation to securing a ACCC to ensure the recommendations that the ACCC was deeply concerned solid outcome for consumers, situations reflect realistic assessments the impact any about the level of non-compliance with sometimes arise where we are the meat regulations will have on the businesses Australian Consumer Law. in the sandwich between consumers owned by thousands of franchised new car and manufacturers, which Mr Sims Dealers and their families. “It amounted to a total condemnation of fully understands. We’ve seen some the industry,” said Mr Blackhall, “but was recent glaring examples where Dealers The final report is due in December
8 | SEPTEMBER 2017 | automotivedealer.com.au POLICY Australian Automotive Dealer Association AADA SECRETARIAT STRENGTHENED WITH TWO NEW EXECUTIVES
he AADA Secretariat will be the office of the Hon Paul Fletcher, MP, policy development, member relationship strengthened with the arrival of Minister for Urban Infrastructure, where he management and industry relations, having Ttwo new Executive Directors, was Policy Advisor. held senior positions at the VACC and with vehicle importers. James Voortman and Brian Savage, on 11 Prior to that James served as National Policy September. Manager for the Australian Automobile James will assume the newly-created position Association and has held other relevant Brian Savage senior roles. of Executive Director, Communications Executive Director, and Policy and Brian has been named to Thisexperience is backed up with a Masters AADA Operations. the new role of Executive Director, AADA in Strategic Affairs from the Australian Operations. National University as well as a BA Honours Brian has an MBA from the University of in Political Science and a Certificate in Canberra and is a qualified automotive Journalism. Additionally, James' extensive technician. He will have responsibility for all James Voortman and intimate knowledge of the workings operational matters, including finance, IT Executive Director, of the national capital will considerably and member services, and will play a key role Communications and Policy. strengthen the AADA's advocacy capabilities. with the Australian Motor Dealer Council. He will be based in our Canberra office. James has extensive policy and automotive He will be based at our Melbourne office. Brian is a highly experienced automotive advocacy experience and comes to us from Both Executive Directors will report to executive with an extensive background in AADA CEO, David Blackhall.
The Leader in Automotive Undercar Service Equipment
Call in and see us at Booth N° 56 Number 1 Brand for Automotive Manufacturers
Stocks Automotive (Aust) P/L National Hotline: 1300 267 444 www.stocksauto.com.au POST- CONVENTION
2017 AADA NATIONAL DEALER CONVENTION & EXPO Australian Automotive Dealer Association UPDATE
MORE THAN 800 ATTEND ONE OF OUR BEST CONVENTIONS EVER
ore than 800 Dealers, dealership ways. That’s what technology does,” Mr advertising spend, how to use content – and what staff and allied industries spent a Sammartino said. that content should be. He shared with delegates Mvaluable two days at the 2017 AADA how to create the kind of 'social experience' that National Dealer Convention, at the Sydney “Thebusiness that we are in is the problems will attract attention in the crowded digital space. International Convention Centre, at Darling that we solve, not the products that we sell. Harbour, this week. The products that solve people’s problems TheGoogle Digital Event consisted of change; we have to change as well.” four sessions covering: ‘Making sure your In what was one of the best AADA customers choose you’, ‘Your On-line Conventions yet, delegates heard from Advancing Innovation, Technology and Showroom’, ‘Bringing Customers Back in the keynote speaker, former Treasurer, Peter Engagement Door’ and finally ‘The Evolving Dealership of Costello, that change was unstoppable, and the Future’. TheConvention theme was conceived to address thus it was essential to be prepared. the challenges facing our industry as we move Former Tesltra CEO and current CSIRO Guest speaker, technologist and futurist Steve into a future of electric and autonomous cars, chairman, David Thodey, spoke to one of Sammartino, said that change would come dealing with a new generation of customers and the convention themes, 'Innovation'. He said faster than everyone expected, and predicted employees. businesses must create cultures that foster the shift from petrol to electric cars would innovation, with the customer at the centre of Facebook and Google led vital sessions, be as swift and as universal as the change to decision-making. educating delegates on the strategies crucial for smartphones. Within 10 years, you won't be success in the Digital Age. able to buy a petrol car, he foretold. “Being a customer-centric organisation is far deeper than just delivering great service,” Mr Facebook's Head of Automotive, Ted Bergeron, “When new technology arrives, customers Thodey said. demonstrated how to use Facebook to generate can have their problems solved in different leads, how to use targeted advertising to cut “The most important thing you can do is
10 | SEPTEMBER 2017 | automotivedealer.com.au POST- CONVENTION
UPDATE to have such a customer-centricity that you Engagement generations. In Victoria, the percentage never stand still. If you’re really listening to of 15 to 24-year-olds with licences went the customer, your business cannot stand ACCC Chairman, Rod Sims, whose from 77 per cent to 66 per cent between still, because customers need change and organisation has spent the past 12 months 2000/2001 and 2012/13. they’re looking for more. Don’t get fooled investigating the new car retailing into thinking customer-centricity is just industry, reassured Dealers that the ACCC “Another emerging trend is a perceptible about better service; it’s about very deeply did not hate them and was not out to get move away from a personal ownership what your company or your group stands them. model to a shared model. We’ve seen the for.” rise of car-sharing: companies like GoGet, In fact, Mr Sims called on manufacturers in most Australian cities. Ride-sharing Mr Thodey said Dealers should not regard to stop putting the squeeze on Dealers companies like Uber, and growing use of themselves as in the business of selling through Dealer Agreements, policies and public transport. These changes suggest cars, but in helping people to get where procedures, and step up to meet their that at least among younger Australians in they needed to go. consumer guarantee obligations under the big cities, there’s increasingly an attitude Australian Consumer Law. that you purchase ‘mobility as a service’ Innovation rather than buying yourself a set of He told delegates there was an inbalance wheels.” “Innovation’s become a very popular in the manufacturer-dealer relationship, term,” Mr Thodey said. which imposes significant cost on dealers Former Federal Minister for Small that ultimately affects consumers. Business and current Executive Chairman “To me , innovation’s very simple: of the Franchise Council of Australia, it’s the constant desire to improve, to However, Mr Sims also reiterated the Bruce Billson, told the Chairman's Dinner never accept the status quo, to always ACCC's determination that service and that Dealers must 'tell their stories', to do something better. Innovation can repair information should be shared with remind politicians and the general public be the way I prepare a presentation, independent outfits, in order to provide that they are significant contributors to it can be the way I answer the phone, the best result (lower prices and greater both the economy and the community. prepare an email, or it can be a really choice) for consumers. big innovation: a new design of a car or “Part of what we’re having to deal with Federal Minister for Urban Infrastructure, something like that. right now is an educative process: to The Hon. Paul Fletcher, told delegates explain that amongst two and a half “You’ve got to actually invest time in that attitudes towards car ownership thousand franchise brands in Australia, it in your organisation. You’ve got to were shifting, and that the industry was there is about 80,000 locally owned, say, ‘Hey, I want new ideas. I want understandably concerned about degree of often family businesses providing the new things to come out. I want you, change regarding the question of whether local market knowledge, the horsepower, the people of our organisation, to be consumers should buy a new car. the capital, the know-how, to grow forward-thinking and action-thinking opportunities and employment in their about what you do’.” “For example, we’re seeing a drop-off in the distance people drive their cars every communities.” Closely related to innovation was the year. Average annual per capita vehicle Mr Billson highlighted the massive role concept of reinvention. kilometres travelled peaked in 2009, and franchises play in Australia, accounting have been falling since then,” he said. “I think companies move in five-year for 11 per cent of the economy compared cycles, and you’ve got to keep reinventing “Australia’s experience is similar to other with less than 4 per cent in the USA. yourself. What you did last year is not developed countries like the UK, Japan Three out of four standalone start-up good enough for next year. And it’s the and Germany. At the same time, younger businesses die within five years, while same in your careers, you’ve got to keep Australians are not rushing to get their three out of four franchises are going reinventing yourself.” driver’s licence at the same rate as earlier strong.
automotivedealer.com.au | SEPTEMBER 2017 | 11 2017 AADA NATIONAL DEALER CONVENTION & EXPO Australian Automotive Dealer Association
Technology At your fingertips, we have collated statistics on: Dealers who actively engage with both technological progress and the consumer Mr Billson urged Dealers to speak up, to • turnover/sales desires that drive it are the ones who will advocate for their own cause. • total of Dealer wages and other profit. They must engage on all sides: with expenses manufacturers experimenting with new To assist with that goal, AADA technology; with customers to ensure launched its 'Electorate Fast Facts' tool • Dealer employees they help them get what they want, and at the Convention. This website allows • tax paid with governments, so they are abreast of planning and legislative developments Dealers to roll their cursor over their • duties collected own particular electorate, and view the likely to impact their business models. • new vehicle registration economic footprint made by the retail • Total Economic Contribution Those who arm themselves with the automotive industry. It can be found on knowledge and aptitude to grow with the aada.asn.au website. in dealerships in every electorate in this new world should continue to thrive. That's what we aimed to provide with For every electorate in Australia, we have Australia. This data will be regularly updated, to ensure you always have access this year's convention, through every put together an infographic highlighting the department of the modern dealership, to the latest information. massive contribution to the economy made and we're proud to say we succeeded. by retail automotive Dealers. Deloitte Motor Industry Services “Navigating Change, Shaping Issues and Connecting You and Stakeholders” Proud Gold Sponsor of the 2017 AADA National Dealer Convention. Find us at booth 76.
Danny Rezek. David Haynes. Grant Cameron. Partner Partner Partner 02 9322 3889 02 8260 4452 0418 409 784 [email protected] [email protected] [email protected] Dale McCauley. Stavroula Papadatos. Stephen Timperley. Partner Partner Partner 02 9322 7277 02 9322 3577 02 9322 3358 [email protected] [email protected] [email protected]
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member fi rms, each of which is a legally separate and independent entity. Please see www.deloittle.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its members fi rms. Liability limited by a scheme approved under Professional Standards Legislation© 2014 Deloitte Motor Industry Services Pty Ltd FEATURES Australian Automotive Dealer Association $15.9M ADD-ON INSURANCE REFUND
ore than 35,000 add-on insurance customers will receive up to $15.9 Mmillion in refunds for insurance bought through car dealerships.
The Australian Securities and Investments Commission (ASIC) found that QBE Insurance (Australia) Guaranteed Asset Protection (GAP) and Consumer Credit Insurance (CCI), sold through car dealerships across Australia between 2011 and 2017, provided little or no benefit.
GAP insurance covers the car owner, if the car is written off, for the difference between the amount they owe on the car loan and the amount for which the car is insured under comprehensive car insurance.
CCI provides some cover to meet the repayments under a consumer’s loan contract if they die, cover. Consumers could claim a larger refund if review, which uncovered the widespread sale of suffer a traumatic illness (such as cancer) or their comprehensive cover provided more than insurance with little or no value to consumers,” become disabled or unemployed. one year of ‘new for old’ vehicle replacement said ASIC Deputy Chairman Peter Kell.
ASIC found the QBE’s GAP insurance was For CCI customers, QBE would refund those “All add-on insurers should review the sale of sold when it was unlikely there would be a gap under 25 years of age for the cost of the life or policies and refund consumers sold policies they between the insured value of the car and the loan trauma insurance element of their premium. didn’t need.” balance, that it duplicated existing cover held by QBE will also make a $50,000 payment to consumers and provided them with more cover Financial Literacy Australia. ASIC is working with other insurers to see that than they needed. QBE’s CCI policies were also improvements are made in the sale and design of sold to young people who had no dependants For customers who paid their loan off early and add-on insurance products. and were unlikely to need the cover. held both GAP and CCI insurance, QBE will partially refund the GAP insurance premium QBE will ask affected customers to confirm According to ASIC, QBE will refund the from the date the loan was paid off. It will also whether they want a refund rather than keeping premium paid by customers who were unlikely make a $50,000 payment to Financial Literacy the policy. to need GAP insurance, partially refund Australia. Together these refunds (with interest) ASIC will release a consultation paper on add-on customers who were sold more GAP cover will be about $15.9 million. than they needed and refund all GAP insurance insurance, seeking feedback from stakeholders customers at least one year’s premium because “This large-scale remediation by QBE is a on possible changes to improve consumer ‘new for old’ cover under their comprehensive direct result of our 2016 add-on insurance outcomes (including a deferred sales model). motor insurance would have provided similar FEATURES Australian Automotive Dealer Association
MASSIVE RISE IN AUTOMOTIVE ADVERTISING
utomotive advertising in Australia rose by magazines (excluding digital in both cases). election last year. almost $47 million in the 2017 financial Ayear as part of a record total ad market “The large increase in advertising investment by The Food/Produce/Dairy and Media categories spend of $7.1 billion. automotive brands could be the result of Holden’s also declined in ad spend. and Toyota’s decision to end car manufacturing in Figures released by Standard Media Index (SMI) Australia, which is seeing a lot of that spend being Australia’s ad market had its fifth consecutive reveals that Automotive is the largest product redirected into marketing,” Ms Schulze said. record financial year ad spend in 2016/17. The category in the ad market, responsible for 11 per SMI 2017 data also showed the fastest growing cent of all advertising. The Retail category was the only sector to show media sectors compared to the previous greater growth than Automotive, with its total corresponding period. SMI Australia/New Zealand Managing Director, ad spend up $90.1 million to provide 9% of all Jane Schulze, said the main outlet for the increased advertising this financial year. Digital programmatic exchanges recorded the automotive spend was outdoor media, up 6 biggest increase in ad spend of all sectors, jumping per cent to $9.7 million. Radio only saw a slight Unsurprisingly, the biggest fall in ad spend was 67.3 per cent to $338 million, followed by social increase of 1 per cent, while auto brand advertisers recorded by the Government category following sites up 20.8 per cent to $229 million and posters/ reduced their ad spend in newspapers and the huge spike in ad spend due to the federal billboards up 18 per cent to $338 million.
TAKE YOUR F&I COMPLIANCE TO THE NEXT LEVEL
Our robots record screen activity CONVERT ONLINE
Our vault keeps your SHOPPERS INTO documents safe SHOWROOM VISITS Our analytics keep Autohook Solutions Deliver Proven Results*: you on track Incremental Sales up to 83% Our flexible sales process 78% New to Brand Buyers lets you be in charge Up to 54% conversion to Showroom visits And our team are always Up to 20% rise in website conversion here to help Operational on 4000+ dealer websites in the USA *Statistics for USA
Call 1300 590 446. See us at Booth 63 at AADA. Find us at Booth 63 at AADA. 1300 807 177 or visit op2ma.com FEATURES Australian Automotive Dealer Association THE RISE (AND FALL) AND RISE OF LUXURY VEHICLE SALES
t's been a tough few years if you were selling Commodores and Falcons, as the rise of the ISUV has been accompanied by an increase in the number of luxury vehicles sold.
A slowing of that growth in the first few months of 2017 had some concerned about the potentially negative ramifications for the wider economy, but a robust bounce-back since May has allayed fears.
The rise
Figures from VFACTS and CommSec show that sales of luxury cars, as percentage of total passenger car and SUV sales, rose from just over passenger cars+SUVs. Some German luxury marques struggled (Audi two per cent in 1995 to nearly 12 per cent in 2016. was down 12.0 per cent for the first half-year and Annual growth of new luxury vehicles slowed BMW down 18.5 per cent) but Mercedes-Benz The CommSec Luxury Vehicles Index lists the markedly over the year ending in March. In April posted a 7.9 per cent gain on its 2016 figures, following as luxury vehicle makers: Audi, Aston 2016 annual growth was 19.7 per cent; in March selling 22,318 cars in the first six months of the Martin, BMW, Bentley, Ferrari, Hummer, Jaguar, 2017 it was just 5.2 per cent – the slowest growth year. Lamborghini, Lexus, Lotus, Maserati, Maybach, in 52 months. Mercedes-Benz, Morgan, McLaren, Porsche and Nissan's luxury arm, Infiniti, sold 422 cars in “In economics no relationship is perfect, but in Rolls Royce. the first half of the year, up 18.2 per cent from the past a slowdown in sales of luxury vehicles 2016. The Mercedes GLA-based Q30 and QX30 2016 was a record year for luxury car sales in has signalled a slowdown of upper-end property compact crossover led the way, but Infiniti remains Australia. Luxury vehicles accounted for 9.17 per prices. And when the top end cools, invariably this vulnerable. cent of total vehicle sales and a record 11.5 per cent infiltrates the broader market. Luxury vehicle sales of passenger cars and SUVs. are still very good; rather, growth of sales is coming Ferrari, Aston Martin and McLaren all enjoyed down from stellar levels,” said the report, prepared growth in the first half of 2017. Ferrari broke The fall by CommSec chief economist, Craig James. through the 100-car barrier to become the sales leader of the supercar field. Albeit off low bases, Sales of luxury passenger cars and sports utility The rise again these makers enjoyed double-digit percentage vehicles (SUVs) were 105,265 in the year to March gains – triple-digit in McLaren's case. 2017, down 1.2 per cent from the December 2016 Nonetheless slow growth is still growth and a record highs. Annual growth of luxury vehicle boost in consumer confidence from May onwards McLaren sold 60 cars in the first six months of sales had fallen to four-year lows. has seen sales of Mercedes-Benz, Ferrari, Bentley, 2017 compared to 27 in the opening half of 2016. Maserati, McLaren and Jaguar all reach record According to CommSec, in the past a slowdown highs. Ferrari Australia Chief Executive Officer, Herbert of luxury vehicle sales has heralded a slowdown Appleroth, said there were buoyant confidence of upper-end property sales and prices. In turn, Most luxury car brands generated robust sales levels across its customer base. slower growth of top-end home prices has led to growth in May with confidence strong at the top softer growth of home prices more generally. end of the new vehicle market, which has a close Order books for two to three years out were very link to the buoyant property market and profits strong as patient buyers waited for vehicles with “So the indicator bears watching, with annual made by business owners. a long waiting list. Consumer confidence surveys growth of luxury vehicles now at the slowest pace which showed niggling concerns in the broader in 52 months,” a CommSec 'Economic Insights' The Porsche Macan enjoyed 10 per cent year-on- economy weren't reflected at the upper end of the report reads. year sales growth for the first half of 2017 while luxury car market. "We're the opposite," he said. the Land Rover Discovery Sport also made a 11.4 Luxury vehicles account for 11.45 per cent of per cent gain. Sales of the Lexus NX and Range So it would seem that after a blip in the first three all passenger cars+SUVs, down from the 11.50 Rover Evoque also rose in the first half of the year months of 2017 the forecast for luxury car sales per cent record highs in December. Three years compared to 2016 numbers. continues to be ‘onwards and upwards’. ago, luxury cars accounted for just 8 per cent of
automotivedealer.com.au | SEPTEMBER 2017 | 15 FEATURES Australian Automotive Dealer Association CLASS ACTION LAUNCHED AFTER TAKATA DEBACLE CLAIMS AUSSIE LIFE
The Australian Competition and Consumer Commission said people should contact their local dealership or manufacturer if they are worried about their vehicle. There have been deaths abroad and injuries in Australia because of the defective product.
The passenger of the Honda, as well as the driver and passenger of the Toyota, were taken to hospital with non-life-threatening injuries.
Honda Australia is working closely to provide assistance.
The Takata airbag recall is an international issue involving more than 60 million vehicles Sydney lawyer has announced a class action Police linked the Takata airbag to the death of worldwide. The recall process has been under way lawsuit against Toyota, Honda and Mazda, the 58-year-old man, who was driving a Honda internationally since 2009. Aseeking refunds for cars fitted with faulty CRV when it collided with a Toyota Celica in airbags from Takata, linked to 18 deaths around Cabramatta on 13 July. AADA, along with the Federal Chamber of the world. Automotive Industries, joins the call from Investigations revealed the man's death was likely government and the ACCC in strongly urging all Lawyer, Damian Scattini, said the Federal Court due to a fault in the airbag, causing the man to be owners to assess whether their vehicle is affected action is seeking refunds based on an Australian struck in the neck with a piece of shrapnel. and if so, to urgently contact their authorised Dealer consumer law that entitles consumers to refunds network. The industry will continue to work with if a product has a fault that makes it unsafe and the Further investigations revealed the vehicle in the the Government on this process. A link to the full problem cannot be rectified within a reasonable time. incident was the subject of a worldwide recall for a list of vehicles affected can be found on the FCAI faulty airbag. website or via www.productsafety.gov.au. Toyota's Australian subsidiary said in a statement that it has a process in place and that fixing affected About 2.3 million cars in Australia are affected, More than 850,000 affected vehicles in Australia vehicles remains a matter of urgency. including Toyota, Mazda, BMW, Subaru, Nissan, have been rectified and it is the industry’s steadfast Honda, Mitsubishi, Chrysler, Dodge, Jeep, Lexus resolve to get in contact with the remaining owners Police say a man who died in a Sydney car crash in and Ford. to complete the recall. July was likely killed because of a defective airbag. The New South Wales coroner will decide the cause It is understood about 60 models are affected by the Throughout this recall campaign the industry has of the man's death. defective product, which affects the driver's side and acted with the utmost concern for the safety of front passenger airbags. vehicle owners and will continue to do so. Used by Australia’s largest dealership groups
O er your customers the option to pay over time, interest free. Use Openpay to upsell:
Tyres & brakes Accessories Service Car care & aftermarket
1300 168 359 openpay.com.au [email protected] FEATURES Australian Automotive Dealer Association SYDNEY TO TRIAL ON DEMAND TRANSPORT SERVICES
n October the NSW Government will launch the Ryde MP, Victor Dominello, said that the service • Sutherland Shire: A service to pick customers first-ever series of On Demand public transport would boost capacity for people living in the region up from home or a nearby location in Jannali Itrials, which will bring the bus to commuters. ahead of the start of Sydney Metro Northwest in West, Sylvania, Caringbah and Gymea and 2019. take them to transport hubs or local shops. Minister for Transport and Infrastructure, Andrew Starts November. Standard fare of $2.60. Constance, said the trials were a first for NSW and “This will encourage more people out of their (Transdev, five mini buses) would transform the daily commute for people cars and onto public transport, and will bring across Sydney. extra services to this rapidly growing employment • Manly and Eastern Suburbs: A service to pick precinct,” Mr Dominello said. customers up at home or nearby location and “We have on demand movies, on demand food take them to Edgecliff and Bondi Junction and, finally, NSW will have on demand transport,” Each trial is unique and will have its own pricing stations, ferries at Manly or Rose Bay Mr Constance said. scheme, ranging from $2.60 to $5.60 for a standard wharves. Starts November. Standard fare of trip. Customers will be able to book online, by $3.10. (Transdev, six mini buses) Eight pilots of On Demand Transport services in phone or via an app. the North West, South West, West, Eastern Suburbs, • Wetherill Park and Greystanes: A service Northern Beaches, Sutherland Shire and Central The other areas included in the first rollout of on to connect employment precincts to T-Way Coast will start from October and allow customers demand trials will be: interchanges. Starts late 2017. Standard fare to book transport from or near their home to a of $3.10. (Indi-Link by Transit Systems, five • Bankstown: An on demand bus service local transport hub or other centres including local mini buses) hospitals. for visitors, patients and employees of Bankstown Hospital that operates 18 hours • Central Coast: A service to take customers to “This trial is just the start of our transport future a day. Starts in October. Standard fare of $4. Woy Woy station from locations on the Woy in NSW. Imagine not having to check a timetable (Punchbowl Bus Company, one bus) Woy peninsula. Starts early 2018. Fares start because you know your service will be there when at $3.10. (Community Transport Central • Edmondson Park: A service to pick and where you need it,” Mr Constance said. Coast, five mini buses) customers up from home or nearby location Key employment region, Macquarie Park, is part of and drop them at the train station. Starts in Transport for NSW will use data from the trials to the first tranche of On Demand pilots, with a service early 2018. Standard fare of $3.10. (Interline, plan future public transport improvements across to transport workers living within 15 kilometres of two mini buses) all areas of Sydney. the precinct starting in early 2018, with fares starting at $2.60. This service will be run by Keolis Downer • Northern Beaches: A service that connects All pilots in this trial will provide a standalone and use a fleet of eight mini vans, six mini buses and customers from Palm Beach to North service that will not affect any existing local bus one wheelchair accessible vehicle during weekday Narrabeen to bus stops on the Northern services. peaks and shoulders. Beaches B-Line. Starts late 2017. Standard fare of $3.10. (Keolis Downer, eight vehicles)
Test the app out at the AADA convention presents: Stand 27/28
Visit our stand to get your VIP Pass to our Launch Party on Tuesday Night at Zephyr Lounge FEATURES Australian Automotive Dealer Association
IF YOU ARE INTO CARS THEN THE WOODWARD DREAM CRUISE HAS TO BE ON YOUR BUCKET LIST
I quickly realised I had been dropped into 'car Dream Cruise officials now have no hesitation heaven'. A short distance from the hotel was in promoting this program as the biggest auto Woodward Avenue and, strolling along there, I event in the world. It brings to Oakland County John Crennan saw the most remarkable procession of cars and a million people and 40,000 cars from all parts Motorsport Contributor speciality vehicles and their owners cruising of the world to participate and stretch out along either side of the dual eight-lane carriageway. Woodward Avenue's 10-miles each way from There were thousands of people sitting in the towns of Ferndale to Pontiac. their deck chairs, lining the plantations from his article is a departure from the normal It is held annually on the third weekend of Motorsport theme, but having just every possible vantage point, clapping and applauding the proud owners cruising by in August and, unlike my first visit, it is now held Treturned from Detroit's 2017 Woodward on Saturday only. But in reality it's a week- their prized possessions. Dream Cruise, I am taking some 'car licence' to long festival, with all the lead-up and plenty of have a rave about this remarkable event. Next morning I discovered all the nearby streets Cruise-related functions and owners driving In 1995 I had to take a trip to Detroit for (other than Woodward) were closed off and from all parts of USA to join up for their HSV and was booked into my favourite hotel, many hundreds of every conceivable model of annual reunion with their owner make and The Townsend, in Birmingham, which is Pontiac, Oldsmobile, Ford, Chevy, Studebaker, model counterparts. Lincoln, Cadillac and 'you-name-it' other makes, approximately 20 kilometres from downtown There are amazing classic cars, custom builds, Detroit. I was booked in from a Friday were clustered according to make and model, from reasonably current models to those 50 years street rods and speciality cars, with the proud to Tuesday. On arrival from the airport I owners presenting their cars in original discovered a maze of pop-up infrastructure old and everything in between – all exquisitely presented. Alongside each car the proud owners showroom condition. On only one of my five all around the hotel precinct and was soon visits has the event been spoilt by rain. told that I had arrived at the same time as the would polish the bodywork to perfection. inaugural Woodward Dream Cruise. I was hooked. The whole event epitomises the American DNA, with cars and Motown knowhow Nearby there were superbly presented Following my discovery of the world's greatest showcasing the historic dominance of marquees jumping with people, bands and car event, I have since hosted two HSV Dealer American and Michigan Sports variant models performing artists. As I was in the entry area, Trips to the Dream Cruise and had two other and convertibles. about to check in to the hotel, I noticed Edsel trips to coincide with the Cruise. Ford talking to an Elvis impersonator as he The Cruise recreates the days of the 50s and was walking from the hotel across the road to The other great thing about hosting the Dealer 60s when young people took their cars for a enter the massive Ford Hospitality Marquee. Trip here was that once we had immersed spin just for the sheer delight of showing off Then I saw one of Ford's special guests: Connie ourselves in the Cruise program on Friday their pride and joy and the sheer enjoyment Stevens, who was also staying at the hotel, evening and all day Saturday, on Sunday we of driving. In Australia we called it 'going for a arriving in a red Thunderbird convertible with boarded a coach to travel an hour north to The pose ' and in America they call it ‘cruising’. photographers everywhere. Michigan International Speedway where we watched the Michigan 500 NASCAR race. This year was my fifth Dream Cruise and Being a GM man I started to realise Ford had very special for me, as I attended with my commandeered this particular precinct. I was As trips go for Dealers who represented the HSV's son, Jonny, to show him all the reasons why I starting to wonder where the GM exhibits and Performance car brand and its HRT racing arm, had, over so many years, raved about how this hospitality centre would be, but after checking nothing could be more appropriate than this was car mecca. You could see the incredible in learned they were only a few blocks away. massive therapeutic injection of American car evolution of car design and wonder at how the history and NASCAR Stock Car racing. engineers and manufacturing teams of the Big
18 | SEPTEMBER 2017 | automotivedealer.com.au Three could produce such amazing works of displays. Their ice chests are obviously full of this event with is how the car continues to car art. soft drinks, as not once have I ever seen any be such a huge part of people's lifestyles and hoon or alcohol-fuelled loutish conduct. Laying personalities. Also, I keep asking myself, just You can see how so many married couples have rubber and burn-outs are banned, which adds how many car and car racing enthusiasts there obviously given their life to restoring to original to absence of any hoon factor at this event. are, not just in Motown or Greater America, condition their favourite brand. You can hear but also around the world. how much they enjoy talking about their cars On this past trip I caught up with Melbourne- and you quickly realise their passion meter is off based Ford tuner, Rob Herrod, who was staying It would be fascinating to know how many the scale in terms of knowledge of their model at the same hotel. At 5pm on the Saturday, people in our car world own a rarely-driven and the car company behind their brand. Jonny and I took up Rob's invitation to join him collectors' car and what would be the overall in the car he had rented and cruise Woodward number of these cars stored in secured All of this is set in a mood of festivity, with from Birmingham to Ferndale. This allowed us garages and specialist museums. Then try 50s and 60s music coming from both the to also take in Ford's performance car display to comprehend the endless hours these car cars cruising and also in the static display area and Mustang Alley in Ferndale. enthusiasts spend making 'love' to the car – and areas. Also, increasingly over the years I have also try to calculate the collective annual dollar attended, you see so many of the Cruisers The three of us then returned to the hotel and value of this obsession. dressed in their 50s gear. had dinner on Saturday night and we all agreed there was no adequate way to describe to During my 20 years running HSV I would You also get to see firsthand the massive open anyone back in Australia how good this event often get asked, "Who buys your cars?" My displays of the major car companies and their is. The proportion and presence it commands answer would always be, “Guys who put their commitment to the Dream Cruise, as you take and how it is executed in a no fuss, no ‘nanny car before wine, women and song”, but having in their massive infrastructure that presents state’ manner means you simply have to said that, I have also observed over my journey models currently in the showroom and experience it 'live' to appreciate how unique how the wives/partners get equally caught up compare these to all the original classics. and remarkable the event is. with this compulsive yet healthy and wonderful addiction to the car. My biggest surprise again this year and every Most importantly for me is to realise how our car other year I have attended, despite how each industry has to be the greatest and most exciting A trip to the Dream Cruise would quickly year it gets bigger and bigger, is the behaviour industry anyone can be fortunate enough to have dispel any fears that our dynamic industry and conduct of all those cruising Woodward a career in. It fills you with pride. is under any threat of volume shrinkage due and the near one million people gathered on to lack of customer passion or car sharing/ their camp chairs and walking around all the The other thought I always come away from pooling, Uber and all the other commentaries from anti-car theorists.
The clever alternative to sell your vehicles To find out how we can tailor a solution for you, contact Unlocking Value for over 25 years Michael Bray on 0407 867 082 or email [email protected] • 3000 vehicles sold every month • National online marketplace to sell your vehicles • Extensive yard space nationally • High clearance rates • Monthly national car auction calendar • 300,000+ visitors every month to our auto auction pages www.graysonline.com
automotivedealer.com.au | SEPTEMBER 2017 | 19
FEATURES Australian Automotive Dealer Association
KIA TOPS J D POWER SURVEY
ia has topped J D Power's Initial Quality The study is based on responses from nearly Porsche finished in third place with 78, with the Study in the US, which ranks brands by 80,000 purchasers. The study found that Ford and Ram brands tied for fourth with 86. Kthe number of flaws found by owners in technology in cars, particularly infotainment Ram rose dramatically from 20th place last year. their new cars in the first 90 days of ownership. systems, is improving, but still remains a trouble spot. Issues such as voice recognition systems The industry average was 97 problems per 100 The study is one of the automotive industry's that can't understand drivers and smartphones owners. After last place Fiat, with 163, came most highly regarded quality surveys. Another that won't pair with the car have been an Jaguar and Volvo. Toyota fell from fifth place Hyundai brand, Genesis, was ranked second, ongoing problem. last year to 14th this year. making it the top luxury car brand. The study also found that some key high-tech Mini was the most improved brand, rising from General Motors, Ford Motor and Fiat Chrysler safety systems also draw complaints, such as 29th to 12th. all improved. For the second consecutive year collision avoidance and lane departure features. the three collectively had fewer problems The study was designed to provide automakers reported in their vehicles than import brands. "An increasing number of consumer-reported with customer feedback on the quality of new problems sound warning bells for auto makers vehicles so they can benchmark that against This is Kia's second win in the J D Power's and suppliers," the study states. their competitors, and to provide consumers survey. Overall Hyundai finished eighth out of with information to help them make informed 33. On points, Kia has 72 problems per 100 owners car-buying choices, according to J D Power. in the first 90 days – down from 83 last year. Genesis received a score of 77.
Put your dealership on the map with Podium.
Visit us in booth #77 FEATURES Australian Automotive Dealer Association INCENTIVISE FOR PROFIT, NOT TURNOVER
the gross profit achieved on the deal. But what average stock turn is currently 30 days, why not Matt Adams about the holding costs of inventory, which introduce a bonus linked to stock turn where, if Senior Accountant, have a direct impact on the bottom line of the the vehicle is sold within 25 days, the salesman BDO Automotive dealership? is awarded an additional $50 on the unit? Once you factor in this additional commission, the The average daily holding cost per vehicle business is still effectively making an additional approximates $40 (think advertising, floor plan $150 on the unit simply for selling it five days interest and cleaning). Accordingly, if we can n a time when cost management is at the sooner. The financial downside to the dealership achieve a reduction of the ‘time in stock’ by forefront of most dealership managers’ is limited as the salesmen must achieve the just five days we can save the dealership $200 minds, is it worth revisiting traditional desired result before any additional commission I per vehicle. With the majority of holding costs commission structures in order to align is paid. made up by floor plan interest, this average will employees’ interests with those of the business? only rise as interest rates trend upwards. This is just one example of how a commission With employee costs representing the largest structure might be redesigned so that the goals As an industry we accept that when money expense to a dealership – averaging 68% of of the salesperson are aligned to the goals of the talks, salesmen listen. Why not use this to the gross profit – and quality staff becoming owners. benefit of the dealership? increasingly highly sought after, it may be For more discussion on this approach and the perfect time to consider whether both An example of how commission structures for assistance with the redesign of your commission the employee and the business are getting the both new and used salesmen could be used to structures, please contact Matt Adams of BDO maximum return from their investment. minimise holding costs is the introduction of a Automotive on email at [email protected]. scaled bonus commission for units sold within Salesmen are traditionally remunerated a fixed au or your usual BDO advisor. a certain period of time. For instance, if the rate per unit sold, as well as a percentage of
FEATURES Australian Automotive Dealer Association JOIN OUR STUDY TOUR TO NADA 2018
AADA invites Dealers to join us on our study Exchange. Discuss solutions with facilitators participants will stay at the world famous five- tour to the 2018 National Automobile Dealers in the Studio. Topics include employee hiring/ star Bellagio, with the opportunity to enjoy Association (NADA) Convention in Las Vegas retention, digital marketing, legal/regulatory Las Vegas' famous nightlife and vast array of next March. overviews, fixed ops and much more. glittering casinos.
NADA is one of the most powerful advocacy Relationships: networking Another highlight of the trip is the chance to groups in the USA. Its membership of 19,000 enjoy an amazing sunset helicopter tour flying represents about 95 per cent of all retail Network with peers, industry experts and over the spectacular Las Vegas Strip, including automotive Dealers in the United States. They exhibitors at all the events, from the opening drinks and canapes prior to take-off. fiercely and steadfastly advocate for the Dealer. reception – co-hosted by J.D. Power – to popular general sessions, receptions, supplier The fourth annual AADA International To be held at the Las Vegas Convention meetings and other gatherings. Industry Relations Dinner will see AADA will Center, the Convention will feature hundreds play host to an acclaimed gathering of leading of exhibitors, thousands of Dealers and The inspiring workshops, Super Sessions and industry figures from the International Dealer some of the automotive and entertainment the hundreds of new products and services on Association Working Group. Held at NOVE, industry's leading speakers and performers, display on the expo floor of the Convention at the top of the Fantasy Tower, guests will all of which make NADA one of the world's make a visit to NADA an absolute must for enjoy a delicious modern Italian meal while premier business events in any field. any Dealer serious about arming themselves drinking in the breathtaking views of the city with the best knowledge. from the restaurant's massive floor-to-ceiling Innovations and solutions: expo glass windows. Together with our travel partners, Corporate The NADA Show Expo is the auto industry's Blue, AADA has compiled an exciting Another social highlight is the Farewell premier marketplace of products, services and program for this business-centric tour, with Cocktail Party at Cabo Wabo Cantina, while technologies specifically targeted to franchised ample time devoted to enjoying NADA's the final night leaves delegates free to explore new car dealerships. More than 700,000 celebrations in one of the world’s great party this incredible city at their own pace, whether square feet of exhibits highlight more than cities. that be walking the Strip or hitting the 500 manufacturers and suppliers of the hottest blackjack tables. products and coolest technologies. During the four days of the Convention, delegates will be exposed to the latest news, The quality of the business and social Ideas and collaboration: education ideas and innovations in the retail automotive programs as well as the stunning Expo are world, gaining a cutting-edge advantage over what make the NADA Convention such an NADA Show 2018, to be held in Las Vegas competitors who don’t take advantage of this informative and exciting event. We take so 22-25 March 2018, delivers the most fabulous opportunity. much out of our yearly pilgrimage, as do the comprehensive education program in the Dealers who accompany us on our Study Tour. auto industry, with more than 120 sessions All work and no play? No way! We look forward to next year's event and hope in eight tracks. Hear industry experts speak you can join us. Bookings are now open, so about important subjects at the workshops. Delegates will also enjoy an exclusive make sure you secure your place. Interact with peers on hot topics in the range of premium add-on benefits that no other organisation can match. AADA tour
AUSTRALIA’S LEADING ADVISORS TO THE AUTOMOTIVE INDUSTRY Despite what many law firms say, it can be difficult to differentiate one firm from another. Our key automotive industry relationships and extensive dealer client base shows that in our case, the differences are real. Let us demonstrate how you can benefit from those differences. Visit www.hwlebsworth.com.au
FINAL - AADA magazine advertisement - August 2017.indd 1 21/08/2017 12:03:01 PM FEATURES Australian Automotive Dealer Association
ELECTRIC SUPER HIGHWAY FOR QUEENSLAND
he Queensland Government will build initial phase of the super highway so we can to public fast-charging infrastructure would one of the world's longest electric vehicle encourage as many people as possible to start further tempt them into purchasing an EV,” he Thighways, a 2,000km stretch with 18 free using them.” said. recharging stations. Mr Miles said what made the announcement “The future truly is electric.” Environment Minister and Acting Main Roads even more exciting was the fact that the energy Minister, Steven Miles, officially kick-started supplied in the fast-charging stations would be Behyad Jafari, Electric Vehicle Council CEO, the EV revolution in the state with the launch green energy purchased through green energy said the Queensland Government was to be of the Queensland Electric Super Highway – credits or offsets. commended for its national leadership in the world’s longest in one state. support of the electric vehicle industry. "EVs can provide not only a reduced fuel cost Mr Miles said the super highway will be a for Queenslanders but an environmentally- “This initial support from government serves series of fast-charging electric vehicle stations friendly transport option, particularly when as a signal to the market that Queensland is that will be rolled out at locations right up charged from renewable energy,” he said. serious about electric vehicles and provides the Queensland coast from the Gold Coast certainty to unlock investment to grow our to Cairns to encourage the uptake of electric "The Queensland Electric Super Highway has economy and create new high-skilled jobs,” he vehicles in Queensland. the potential to revolutionise the way we travel said. around Queensland in the future." “This project is ambitious but we want as many “I encourage all governments across Australia people as possible on board the electric vehicle Mr Miles said electric vehicle ownership rates to follow suit, particularly as this support revolution, as part of our transition to a low around the world were increasing, largely due will help to provide motorists with increased emissions future,” Mr Miles said. to significant advances in battery technology choice of cars that are cheaper and healthier to and continued cost reductions in EVs. operate.” "Once operational in the next six months, (the recharging stations will) make it possible "The most recent Queensland Household *The locations of the fast-charging stations to drive an electric vehicle from the state’s Energy Survey showed that 50 per cent of – Cairns, Tully, Townsville, Bowen, Mackay, southern border to the Far North. Queenslanders will, when purchasing a new Carmila, Marlborough, Rockhampton, Miriam car in the next two years, consider an electric Vale, Childers, Maryborough, Cooroy, Brisbane, "They will be available for use at no cost for the vehicle, plug-in hybrid or regenerative braking Helensvale, Coolangatta, Springfield, Gatton hybrid and the majority said improvements and Toowoomba.
Sell more cars. Get bigger rebates. Make higher service profits. Have happier customers. Deploy Comscentre automotive technology.
Visit Stand 86 & 87 to learn more. comscentre.com | 1300 134 680 FEATURES Australian Automotive Dealer Association US AUTOMAKERS UNITE TO FIGHT COUNTERFEITS
non-profit group of 11 major contacting the entire North American coordinator. After a three-hour meeting US automotive manufacturers auto industry and you bring the with Marti in 2016, the council convinced A is cracking down on sales of resources of that industry to bear against him to include parts counterfeiting in the counterfeit airbags and other automotive counterfeiting,” said A2C2 President, US Joint Strategic Plan on Intellectual parts. Andy Forsythe, of Nissan. Property Enforcement for FY 2017-2019.
The Automotive Anti-Counterfeiting In just a few years A2C2 has notched A2C2 also has conducted a number of Council (A2C2) first formed in 2014 and some big wins. In addition to helping training sessions with US Customs and has now grown to include 11 automakers bring individual counterfeiters to justice, Border Protection officers to help them that, collectively, produce around 90 per the group has convinced e-commerce identify shipments of counterfeit auto cent of the vehicles on the road in the US. giants Amazon and Alibaba to prohibit parts. A2C2 member, Joe Cammiso, of airbag sales on their websites. Toyota said the brand-agnostic training The group works with the US sessions were designed to teach them Department of Homeland Security to With the help of the group’s federal what shipments of genuine OEM parts protect their brands and the health and liaison, Jon Ruttencutter – a Special should look like. The council’s trainers safety of consumers. Agent with Homeland Security urge customs and border inspectors to Investigations – the council met face- call any A2C2 member if they spot a “When you contact A2C2 with a to-face with Daniel Marti, the former suspicious shipment, regardless of the counterfeiting concern, you are US intellectual property enforcement brand.
Easy application. Fast approval. More sales.
To fi nd your customers the right car, you also need to fi nd them the right fi nance. At Green Light Auto Finance we specialise in providing quick, easy-to-apply car fi nance solutions that are right for you and your customers.
Australian Credit License 392 740. Conditions apply.
www.greenlightauto.fi nance Australian Credit License 392 740. Conditions apply. 1300 081 488 FEATURES Australian Automotive Dealer Association MANUFACTURING FUND TO BRING AUSTRALIA INTO 21ST CENTURY
he Federal Government’s announcement Although the three domestic automotive around the world, including for production of in the May Budget that it will introduce manufacturers will cease manufacturing the technically advanced Nissan Leaf electric Tan Advanced Manufacturing Growth motor vehicles in Australia by the end of 2017, vehicle. Fund recognises the value of Australia’s they have each announced they will maintain automotive industry and will help turbocharge considerable research and development The government's plan to reduce tariffs on Australian manufacturing into the 21st capabilities in Australia, which will contribute vehicles and components for prototyping and century. to their global vehicle design and development development of global platforms will assist the capabilities. These local capabilities range from automotive brands and companies in the supply The Federal Chamber of Automotive Industries concept designs and product development chain to continue their high-value, innovation- says Australia has a world-class capacity for through to product adaptation and technical intensive design and product development the design and development of new vehicles. facilities. operations. The Australian automotive industry plays an important role in international product Nissan Australia also maintains a seven-days- Australia has a long and proud history in development. It competes globally and designs per-week manufacturing operation at its automotive design and development. The and engineers a complete range of automotive casting plant at Dandenong South. From that Advanced Manufacturing Growth Fund components, including body and chassis systems, plant Nissan provides a range of high-pressure supports the evolution of the domestic electrical and control systems, drivelines, interiors die-cast, machined and assembled components automotive industry into the 21st century. and specialist factory accessories. exported to Renault-Nissan Alliance plants
Members first, always.
For over 25 years we’ve built our name as the leading industry fund for the automotive industry.
We exist solely to benefit you.
Whether you’re paying your team’s super, or building your own, we have the tools, resources and people to help you make financial decisions that work for you.
To find out how we can support you, call us or visit our website today.
1300 362 415 mtaasuper.com.au/get-started
This document is issued by Motor Trades Association of Australia Superannuation Fund Pty. Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). The information provided is of a general nature and does not take into account your specific needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. The MTAA Super Product Disclosure Statement (PDS) can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision. FEATURES Australian Automotive Dealer Association RENAULT-NISSAN ALLIANCE TOP ELECTRIC VEHICLE MAKER
he Renault-Nissan electric the Twizy low-speed EV. vehicle alliance continues to Tgo from strength to strength. Also in the works for Renault are an The Nissan Leaf is the best-selling updated version of its Kangoo ZE all-electric car in history; the electric van and a new ZE electric Renault Zoe is performing strongly version of the larger Master van. in Europe, and the Mitsubishi Last October, Renault-Nissan i-MiEV is also contributing to sales. completed purchase of a 34 per Including the Mitsubishi sales, cent stake in Mitsubishi, making the alliance had sold a total of it the Japanese car maker's largest 424,797 vehicles up until the end shareholder. of 2016, with 94,265 in combined Mitsubishi's greater experience sales last year. By comparison, with plug-in hybrids, having sold its Tesla sold 76,230 cars in 2016. Outlander Plug-In Hybrid in Europe More than 250,000 Leafs have been and Japan since 2013, will be a great sold since the model was launched advantage for the alliance, while in late 2010, while the Zoe was the a Renault-Nissan platform could top-selling electric car in Europe be the basis for a future Mitsubishi last year, moving 21,735 units. electric car. Renault sold 25,648 electric vehicles Meanwhile, BMW's electric car fleet in Europe last year, an increase of passed 100,000 total sales three years 11%. That figure does not include after it began production. FLEET MANAGEMENT NOW A PROFESSION
he Australasian Fleet going to fleet customers, vehicle Managers Association manufacturers and dealerships are T(AfMA) has partnered with also starting to realise the value in Swinburne University to develop training dedicated staff to handle a Diploma of Leadership and fleet business. Management, aimed at providing the skills required by fleet In the UK, vehicle manufacturer managers and other automotive SEAT is looking to improve professionals. services to fleet customers by introducing a fleet excellence The course creates a pathway to a program. After meeting a Graduate Certificate in Business minimum fleet sales volume, staff Management (Fleet Management) will be trained to understand launched this year. the delivery and invoicing requirements of leasing companies, With 50 per cent of all new vehicles which are very different to a retail sold in Australia during 2016 sale. FEATURES Australian Automotive Dealer Association KANGAROOS THROW OFF DRIVERLESS CARS
he unusual way kangaroos move is human walks, because it's not only the one type Road trains, unsealed roads among other making it difficult for autonomous vehicle of human – you’ve got short people, tall people, Aussie challenges sensors to identify them. people wearing coats. The same applies to a ‘roo. T In addition to difficulties detecting ‘roos, the cars Volvo Australia's Technical Manager, David “If you look at a ‘roo sitting by the side of a road, will need to be adjusted for a few other Australian Pickett, recently told the ABC that kangaroos standing at the side of a road, in motion – all quirks before they are rolled out. completely throw off the car's animal detection these shapes are actually different.” Australian Driverless Vehicle Initiative Executive system. The company nailed down their large animal Director, Rita Excell, said Australia's many unsealed "We've noticed with the kangaroo being in mid- detection software, first tested on moose in roads, its unmarked highways and the huge road flight ... when it's in the air it actually looks like Sweden. But the research team sent to Tidbinbilla trains that barrel down regional highways were it's further away, then it lands and it looks closer," Nature Reserve in Canberra 18 months ago to among the challenges. he said. study ‘roos are still solving the Australian problem. “There are some things you don't find in other Because the cars use the ground as a reference “It's quite interesting for them,” Mr Pickett said. countries. If you've got a car passing something like point they become confused by a hopping [a road train], it needs to understand what that is,” He said it would not delay the eventual rollout of kangaroo, unable to determine how far away it is. Ms Excell said. driverless cars in Australia, but it was critical to But Mr Pickett said it was even more complicated solve the problem before they were introduced. But while regional Australia's road infrastructure than that. may need some work to be driverless car-ready, Ms According to the NRMA there are more than Excell said Australia was well positioned to be one of “First we have to start identifying the ‘roo,” he 16,000 collisions with kangaroos per year, with the first places for the vehicles. said. nearly 1,000 of those in the nation's capital – the number one hotspot for ‘roo collisions in the “The maturity is much further along than maybe is “We identify what a human looks like by how a country. publicly aware,” she said.
Everyone says they’re better!!! When only the best will do...
National National Supply Aftermarket Program Specialists and Install Specialists
07 3806 5704 1300 277 623
AP-Ad-127x180-2.indd 1 13/07/2017 12:26 pm FEATURES Australian Automotive Dealer Association BIG ADVANCE FOR WIRELESS CHARGING OF ELECTRIC CARS
f electric cars could recharge while driving “We still need to significantly increase the Driving range down a highway it would virtually eliminate amount of electricity being transferred to Wireless charging would address a major concerns about their range and lower their charge electric cars, but we may not need to I drawback of plug-in electric cars: their cost, perhaps making electricity the standard push the distance too much more.” limited driving range. Tesla Motors expects its fuel for vehicles. The group built on existing technology upcoming Model 3 to go more than 320km Now Stanford University scientists have developed in 2007 at MIT for transmitting on a single charge and the Chevy Bolt, which overcome a major hurdle to such a f uture by electricity wirelessly over a distance of a few is already on the market, has an advertised wirelessly transmitting electricity to a nearby feet to a stationary object. In the new work range of 380km. But electric vehicle batteries moving object. Their results were published in the team transmitted electricity wirelessly to a generally take several hours to fully recharge. A the 15 June edition of Nature. moving LED light bulb. That demonstration charge-as-you-drive system would overcome only involved a 1 milliwatt charge, whereas these limitations. “In addition to advancing the wireless charging electric cars often require tens of kilowatts to of vehicles and personal devices like cell “In theory one could drive for an unlimited operate. The team is now working on greatly phones, our new technology may untether amount of time without having to stop to increasing the amount of electricity that can be robotics in manufacturing, which also are on recharge,” Mr Fan explained. transferred, tweaking the system to extend the the move,” said Shanhui Fan, a Professor of transfer distance and improve efficiency. “The hope is that you’ll be able to charge your Electrical Engineering and senior author of the electric car while driving down the highway. A study.
Key control is in your hands
See at Stand 94
AADA 2017 National Dealer Convention
[email protected] 0400 562 548
LOCKIT By
Systems Pty Ltd Keeps on tracking coil in the bottom of the vehicle could receive This field also causes electrons in a nearby student Sid Assawaworrarit, the study’s lead electricity from a series of coils connected to an coil of wires to oscillate, thereby transferring author. electric current embedded in the road.” power wirelessly. The transfer efficiency is “This eliminates the need for automatic and further enhanced if both coils are tuned to the Some transportation experts envision an continuous tuning of any aspect of the circuits.” same magnetic resonance frequency and are automated highway system where driverless positioned at the correct angle. Mr Assawaworrarit tested the approach by electric vehicles are wirelessly charged by solar placing an LED bulb on the receiving coil. In a power or other renewable energy sources. The continuous flow of electricity can only be conventional setup without active tuning, LED The goal would be to reduce accidents and maintained, however, if some aspects of the brightness would diminish with distance. In the dramatically improve the flow of traffic while circuits, such as the frequency, are manually new setup the brightness remained constant as lowering greenhouse gas emissions. tuned as the object moves. So either the energy the receiver moved away from the source by a transmitting coil and receiver coil must remain Wireless technology could also assist GPS distance of about one metre. Fan’s team recently nearly stationary or the device must be tuned navigation of driverless cars. GPS is accurate up filed a patent application for the latest advance. automatically and continuously – a significantly to about 10.5 metres. For safety, autonomous complex process. The group used an off-the-shelf general- cars need to be in the centre of the lane where purpose amplifier with a relatively low the transmitter coils would be embedded, To address the challenge the Stanford team efficiency of about 10 per cent. They say providing very precise positioning for GPS eliminated the radio frequency source in the custom-made amplifiers can improve that satellites. transmitter and replaced it with a commercially efficiency to more than 90 per cent. available voltage amplifier and feedback Magnetic resonance resistor. This system automatically figures “We can rethink how to deliver electricity not Mid-range wireless power transfer, as out the right frequency for different distances only to our cars but to smaller devices on or in developed at Stanford and other research without the need for human interference. our bodies,” Mr Fan said. universities, is based on magnetic resonance “Adding the amplifier and resistor allows power “For anything that could benefit from dynamic coupling. Just as major power plants generate to be very efficiently transferred across most of wireless charging, this is potentially very alternating currents by rotating coils of wire the three-foot range and despite the changing important.” between magnets, electricity moving through orientation of the receiving coil,” said graduate wires creates an oscillating magnetic field. FEATURES Australian Automotive Dealer Association
BRITISH REPORT SEES BILLIONS IN DIGITAL MANUFACTURING
British report commissioned • 2.6 billion pound annual benefit to incentives to support innovation and by KPMG has highlighted the suppliers investment in new machinery, technology Aopportunity for the automotive • 4.3 billion pound annual benefit to and plant development; regulation to industry to make billions of pounds over manufacturers, and encourage adoption of machine to machine the next two decades by embracing digital communication, and regional policies to • 1.7 billion pound annual benefit to the manufacturing. encourage technology providers to locate wider economy, close to manufacturing hubs. The first-ever report on the potential of digital with a total cumulative economic benefit of automotive manufacturing in the UK says the 74 billion pounds by 2035. Other countries have already adopted digital industry stands to make an extra 74 billion manufacturing strategies. Germany and pounds in profit over the next 20 years by Digital manufacturing has been called the fourth the USA are at the forefront, with Germany adopting the computer-centric method. industrial revolution and marks the greatest the first nation to develop a digitalisation change in automotive manufacturing since strategy, known as ‘Industrie 4.0’, led by Digital manufacturing uses computer automation was introduced to production lines Chancellor Angela Merkel. In the US, US$1 modelling to determine the tools, machinery in the 1960s. billion in funding has been committed to and materials required in the manufacturing the Industrial Internet Consortium. process. It allows engineers to discover ways The report, titled ‘The Digitalisation of the to increase production efficiencies before UK Automotive Industry’, predicts that new These nations already collaborate on production even begins. technologies, such as artificial intelligence, standard setting, and Japan will soon join advanced robotics and 3D-printing, as well as them following the imminent launch of its The report, produced by the Society of Motor new data management techniques, will enable Industrial Value Chain Initiative. Manufacturers and Traders (SMMT), calls manufacturers to save time, boost productivity for the British Government to put digital What about Australia? and respond more quickly to customer demands. manufacturing at the heart of its industrial The need for plant maintenance will decline and Unfortunately for Australia, a report from strategy, along with autonomous and the ability to plan and predict consumer desires the Turnbull Government's Advanced connected vehicles, and e-mobility. will increase. Manufacturing Growth Centre has found Benefits of digital manufacturing highlighted that most Australian companies are not Customers will benefit via greater in the report include: equipped to match it with overseas rivals personalisation, shorter waiting times, more when it comes to advanced technology. This • reduces parts inventory by up to 30 per content and greater connectivity. is in spite of the government's $1.1 billion cent An SMMT survey found that automotive Innovation Agenda. • increases productivity by up to five per companies were most concerned about With Australian automotive manufacturing cent funding, knowledge and skills development. set to wind up by the end of this year, it • reduces machine downtime by up to 40 Respondents called for government to help appears the local industry can do nothing per cent promote and encourage digital manufacturing, but wait and watch developments overseas. • reduces time to market by up to 30 per cent with measures including funding and tax
32 | SEPTEMBER 2017 | automotivedealer.com.au FEATURES Australian Automotive Dealer Association MERCEDES-MAYBACH LAUNCH NEW LUXURY ELECTRIC CONCEPT
ercedes-Maybach last month launched its new concept vehicle, Mthe Vision 6 Cabriolet, at the 2017 Monterey Car Week in California. The concept car is a glamorous luxury convertible that runs exclusively on electricity. The Vision Mercedes-Maybach 6 Cabriolet takes modern luxury into the realms of the ultimate in luxury and is the perfect embodiment of our design strategy. Breathtaking proportions combined with a luxurious haute couture interior help to create the ultimate experience,” explained Gorden Wagener, Chief Design Officer of Daimler AG. and puristic flowing lines, and at the same and can travel more than 320km on a single Measuring almost six metres in length, time completely reinterprets these aesthetic charge. This new model is a follow-up to the the Vision Mercedes-Maybach 6 Cabriolet principles. previous Vision 6 Coupe, unveiled last year. incorporates the classic proportions of art The new model has a boat tail end and is The Vision 6 Cabriolet has 750 horsepower deco design with its extremely long bonnet almost 6 metres long.
Give your Service Revenue a Lift with an eVHC System
3 Identify & price more repair work 3 Build customer trust using photo & video evidence 3 Convert sales quickly with online customer authorisation 3 Maximise revenue by following up on declined work MK_1755
GET STARTED WITH A FREE DEMO!
1800 810 103 [email protected] www.infomedia.com.au FEATURES Australian Automotive Dealer Association VOLVO TO GO FULLY ELECTRIC BY 2019
olvo plans to build only electric and hybrid for a similar price, less-expensive hybrids are Such systems generate enough electricity to vehicles, starting in 2019, making it the first likely to sell more, at least in the short run. allow automakers to move to electric power Vmajor automaker to abandon cars and SUVs functions such as air conditioners and water powered solely by the internal combustion engine. Other automakers are likely to follow and oil pumps, getting rid of mechanical belts Volvo's announcement in a few years, with that are a drag on the engine. Those systems Chief Executive, Hakan Samuelsson, said the luxury automakers leading the way, said can run only when needed and that can save move was dictated by customer demand. It Senior Analyst for Navigant Research, Sam another 2 or 3 percent on fuel consumption. means that in two years all new Volvo vehicles Abuelsamid. will have some form of electric propulsion. European luxury brands, such as Audi and The announcement comes as the global "I think we'll probably see most of the premium Mercedes-Benz, are already rolling out mild auto industry slowly moves towards electric- brands do the same thing in roughly the same hybrid cars in Europe. All manufacturers powered vehicles after more than a century of timeframe," he said. "More high-volume are moving towards more hybrids, but the using engines that burn only fossil fuels. mainstream brands will be a little slower." transition to 100 percent electric vehicles Manufacturers moving toward hybrids is still years away, said Darren Jukes, Head Even though sales are a fraction of conventional autos, of Industrial Products for accounting firm companies must sell them to meet fuel economy In order to meet government fuel economy PricewaterhouseCoopers. and emissions regulations. In some markets, electric requirements worldwide, automakers are vehicles are seeing increased demand. developing more hybrid systems. Many are "I don't think we're seeing the end of combustion engines just yet," he said. Yet the transition to fully electric vehicles will 48-volt ‘mild hybrids’ that assist a gas engine take years. Although Tesla Inc announced a move a car to make it more efficient, improving Volvo, which is based in Sweden but owned $46,000 electric car for the masses and General gas mileage by 10 or 15 percent, Mr Abuelsamid by Chinese firm Geely, will launch five fully THANKMotors Co is selling the all-electric Chevy Bolt said. YOU!electric cars between 2019 and 2021.
Auto-Tub Vehicle Washing Systems would like to thank our loyal customers for helping us achieve 20 continuous years at the AADA National Dealer Convention and Expo! Thank you for supporting us in providing the most effi cient, cost effective and environmentally friendly car wash system on the market!
COME HELP US CELEBRATE AT BOOTHS 68 & 69 AT THE EXPO!
Auto-Tub Vehicle Washing Systems Ron Dodds - 0412 313 176 Peter Farquharson - 0416 198 973 www.auto-tub.com FEATURES Australian Automotive Dealer Association RECORD SALES MONTHS IN JULY, AUGUST
ustralia’s motor industry has now Sales to private buyers during August Toyota had a market-leading share of 19.2 per posted five months of record sales provided impetus for the month’s good cent during August, followed by Mazda with Afor 2017, with August the fourth outcome. 8.8 per cent, Hyundai (8.1%), Holden (7.2%), successive month of record gains and Ford (6.9%) and Mitsubishi (6.9%). Private SUV sales rose by 7.6 per cent; the highest August outcome on record, however the big gain was in private light The Toyota Hilux remained the country’s according to the motor industry’s official commercial sales, which rose 23.4 per cent. best-selling vehicle during August with 4,287 statistical service, VFACTS. Light commercial sales to business also sales, followed by the Ford Ranger with 3,588, The August result of 96,662 sales was 1.8 provided a useful boost, with a 12.8 per cent the Toyota Corolla in third place with 2,948, per cent more than for the same month last increase over August 2016. Across the market the Hyundai Tucson (2,206) and the Mazda3 year and comes on the back of a July result private sales rose by 3.7 per cent. (2,163). of 92,754 sales. These numbers keep the Diesels remained the preferred engine of Key Points: industry on track for another record year, choice among light commercial buyers with the overall market now at 788,968 sales • The August 2017 market of 96,662 new during August. Sales of diesel engine light for the year to date, compared with 784,380 vehicle sales is an increase of 1,753 commercials to private buyers rose 26.3 for the same period in 2016. vehicle sales or 1.8% on August 2016 per cent, while diesel sales to non-private (94,909) vehicle sales. August 2017 Comparing the August outcome with that light commercial buyers rose 18.8 per cent (26.5) had the same number of selling of the corresponding month in 2016, sales compared with the same month last year. days as August 2016, which resulted in of small SUVs grew significantly by 22.8 per The Chief Executive of the Federal Chamber an increase of 66.2 vehicle sales per day. cent and medium SUVs by 14 per cent. Light of Automotive Industries (FCAI), Tony passenger cars also showed firm growth with • The Passenger Vehicle Market is down Weber said the rise of SUVs and light a 7 per cent gain. by 3,212 vehicle sales (-8.2%) over the commercials was providing the generator for same month last year; the Sports Utility Light commercial vehicles were also strong the industry’s growth. Market is up by 1,721 vehicle sales contributors to the healthy August total. Sales “More new models coming into the market (4.7%); the Light Commercial Market of pick-up and cab-chassis 4X4s rose by 23 per in both these segments is creating strong is up by 2,793 vehicle sales (16.7%); and cent over the same month last year, and two- consumer interest and helping to fuel the the Heavy Commercial Vehicle Market wheel drive models increased by 2.7 per cent. industry’s momentum,” Mr Weber said. is up by 451 vehicle sales (16.0%) versus Every State and Territory other than August 2016. “This August result provides confidence that Tasmania increased sales over August 2016. should all the positive contributing factors • Toyota was market leader in August, The ACT showed the strongest growth at 9.4 within the economy remain in place, sales followed by Mazda and Hyundai. per cent, followed by Western Australia with during the back half of the year will keep us Toyota led Mazda, with a margin of a 4.2 per cent increase, Queensland (+3.5%), on track for another record year.” 10,000 vehicle sales and 10.4 market Northern Territory (+2.6%), Victoria (+1.7), share points. NSW (+1.1%) and South Australia (+0.1%).
Your first choice in vehicle wash systems.
PH: (02) 9757 4700 www.goodsight.com.au • Automatic - Soft Foam Brite - Rollover Machines e: [email protected] • High Volume Conveyor Wash Systems Distributors of: • Touch-less Automatic Machines • In-Bay Self Serve High-Pressure Wash Systems • Cost Saving Pay Per Wash Systems • National Service & Support
automotivedealer.com.au | SEPTEMBER 2017 | 35 FEATURES Australian Automotive Dealer Association
3D SCANNER TO IMPROVE TYRE SAFETY
Finnish tyre manufacturer has explains on its website , the driver drives Nokian Tyres’ President and CEO, Ari developed new 3D scanning their car over a scanner that reads the tyres. Lehtoranta, said, the company hopes its efforts Atechnology to help drivers easily Meanwhile a camera identifies the vehicle will promote road safety in a simple and easy assess the safety of their tyres. by its registration number. After the scan the fashion. driver can receive a free report of their tyre A study of the safety-related aspects of tyre “There is a big change ahead for our industry information via text or email. use showed that 25 percent of tyre-related in the near future,” he said. accidents occurred because the tyre’s tread Modern vehicles come equipped with a host of “Until now, the tyre sector has lagged depth was below the minimum level. Given software and hardware designed to save lives, clearly behind other industries in terms the difficulty of regularly monitoring the wear yet tyres, our connection to the road, are often of digitalisation. It is high time to harness and tear of tyres, the company, Nokian, is overlooked, with the potential for devastating technology to serve motorists with regard to introducing technology that can “raise drivers’ problems. their tyres.” awareness of the condition of their tyres by It's not that motorists are unaware of the making it as easy to access as possible”. SnapSkan is currently only available in importance of healthy tyres, but more that it Finland, but the company expects to export SnapSkan measures tyre tread depth and safety is difficult to keep track of the condition of the product in coming years. via 3D scanning technology. As the company their tyres. Solid service that delivers.
At Carways, we stand behind our Here’s how we deliver for you: dedication to delivering the best • Over 45 years experience in the industry. car transport solution in Australia. • Modern fleet operated by experienced drivers. We’ve got a team of experienced • We are reliable, efficient and committed to safely transporting motor vehicles. professionals that tailor a solution • Conveniently located depots in New South Wales, that meets your needs. Victoria, ACT, Queensland and South Australia. Contact us on 1300 227 929 or visit carways.com.au FEATURES Australian Automotive Dealer Association 5 THINGS TOP SALES PERFORMERS DO IN 2017
language of Sales needs to be learnt and understand their customers before Dave Benson then practiced consistently. If you make proceeding to the presentation. If we are CEO/Sales Expert, cold prospecting calls, outbound follow- asking smart questions we get from our Train Retail Sell up calls or take inbound phone calls, you client the answers that help us tailor our System need to practice your phone techniques. sales process. This might sound basic, but Additionally, the top performers practice the top sales people I see today are asking their questioning techniques, overcoming the best questions and know the most about or the past 15 years I’ve worked in objection techniques and closing word their clients. tracks. To be truly great at sales, this should and with sales teams and it seems 5. They have a plan for every day be done daily. Fevery team is the same: a mix of three There is an old saying, ‘If you fail to groups of people is always evident: 2. They use video plan, you plan to fail’, but still I walk into Group 1: The top performers, always always I've been seeing this evolve over the last five dealerships today and many salespeople earning the big bucks and smashing targets years, but personalised video is massive! don't have a plan thought out for each Whether it be using FaceTime calls when day – and many don't even use a diary! I'm Group 2: The poor performers, more than your customer can't come in for you to a firm believer you must reverse engineer likely on the way out walk them around the car, or prerecorded your success every day. If you want to sell Group 3: The average rest, just doing enough six position sells, video greetings and one car for every one day you're at work, to make quota and earn enough to get by. testimonial videos, the top performers you’d better have a plan to have up to 15 are using video like never before to reach quality conversations every day. If you don't, It's not necessarily a bad thing for your team, clients. It doesn't have to be a Hollywood you're only dreaming of that goal. Top as even world class sporting teams have a production, just press record! sales performers have a daily prospecting mix of the three groups of performers. The plan, follow-up plan, marketing plan and 3. They don't take no for an answer challenge, however, is when you have a poor appointments ready to make each day a Sales is about persistence, whether that or average performer whom you know has success. the potential to be great. How do you develop means overcoming objections or continually their skills and belief so they flourish into a top following a client up when all seems lost. Top performers aren't born; they are found, performer? The top performers know that when a trained and equipped with the right resources. customer says "no", they are actually saying As a special offer for all readers this month I In this article I'm going to give five (of many) "I don't KNOW enough to make a decision". want to equip you with a resource to help you activities that the top sales people in car Keeping consistent on being persistent and your teams become top sales performers. dealerships across the world are doing right without being pushy and manipulating is now to maximise their selling potential. the key to being above the pack. I've just written a new book, ‘100 Days of Sales Greatness’, and I want to post you a copy free! 1. They practice their scripts 4. They understand their customer I've got a limited number available for this offer, I'm a firm believer that being great at sales For the past few years I've been encouraging so visit 100daysofsalesgreatness.com to get your is about learning the language of Sales. Dealers to have their top five questions FREE COPY TODAY! Just like learning another language, the all salespeople ask their clients to best
Why let chips cost you a sale? FEATURES Australian Automotive Dealer Association FIAT CHRYSLER JOINS BMW AUTONOMOUS DEVELOPMENT GROUP
iat Chrysler Automobiles will join the makers to pursue state-of-the-art designs Mobileye continues to break new ground BMW Group, Intel and Mobileye to and create differentiated brands. in the auto industry,” said Intel CEO, Brian develop a state-of-the-art autonomous Krzanich. F System integrators, such as Delphi, are driving platform. critical for the go-to-market strategy of the “In less than one year the joint teams have Delphi is also on board as a development joint solution to reach multiple automotive made substantial progress to deliver a partner and system integrator. The partners OEMs quickly. A key role for Delphi will scalable platform for autonomous driving intend to jointly deploy a cooperation model be integration of the solution delivered and are on track to deliver 40 pilot cars to deliver and scale the developed solutions by BMW Group, Intel and Mobileye into in the second half of this year. Adding to the broader OEM automotive industry OEM vehicle architectures. Additionally, Delphi as an integration partner will help to and potentially other industries. Delphi may also provide required hardware accelerate the introduction of autonomous components, such as sensors, as well cars on the streets from multiple car-makers The platform will be scalable for Level 3 as specific customization efforts and and offer differentiation to customers.” to Level 4/5 automated driving and will be applications for differentiation. available to multiple auto-makers around “Collaboration and inclusion across multiple the world. This engagement between Delphi and the auto-makers and suppliers is the best Cooperation Partners is non-exclusive. The approach to developing a safe, cost-efficient Delphi has already provided a prototype Cooperation Partners are in the process and fast-to-market solution for autonomous computer platform to the BMW Group and of onboarding additional integration and driving,” said Professor Amnon Shashua, is working together with Intel and Mobileye development partners to support future Mobileye’s co-founder, Chairman and CTO. in the areas of perception, sensor fusion OEM customer needs. and high performance automated driving “Delphi’s expertise in the field as well as computing. “From the very beginning we designed our their long history of integrating complex cooperation on a non-exclusive platform systems makes them a very appropriate In July 2016 the BMW Group, Intel and for this technology of the future. With choice to join this cooperation.” Mobileye announced they were joining the onboarding of Delphi we significantly forces to make self-driving vehicles become “This is a great opportunity for Delphi strengthen our development of automated a reality. They are collaborating to bring to use its technical depth and experience driving and make a future step in spreading solutions for highly and fully automated with automated driving and electrical this technology across the industry,” stated driving into series production by 2021. The architecture to help the cooperation develop Klaus Fröhlich, Member of the Board of Cooperation Partners have since developed and deploy at scale. Our close working Management of BMW AG for Development. a scalable architecture that can be adopted relationship with all three partners serves as by other automotive developers and car- “The partnership between BMW, Intel and a solid foundation for a success,” said Kevin Clark, president and CEO of Delphi.
38 | SEPTEMBER 2017 | automotivedealer.com.au FEATURES Australian Automotive Dealer Association PETROL TOO EXPENSIVE IN CAIRNS
airns petrol stations make 38 percent competition caused by the presence of a United Mr Sims said three steps that could be taken more profit on fuel sales than the national retail petrol site. “This is significant given that to promote more competition in Cairns were: Caverage, according to an Australian Cairns is around 20 times the size of Innisfail. increased petrol price transparency; regular Competition and Consumer Commission Other towns in North Queensland, such as reporting on wholesale petrol prices and (ACCC) report. Mareeba, Atherton and Ayr, have also had retail margins, and new competitively-priced lower petrol prices than Cairns in recent years,” retailers entering the market. ACCC Chairman, Rod Sims, said the reason was Mr Sims said. the lack of “vigorous and effective competitors”. “Close scrutiny of pricing behaviour may give He said he hoped the release of the long-awaited “The ACCC’s Cairns petrol market report retailers less incentive to increase and maintain report analysing the petrol market in Cairns confirms what motorists have suspected for high prices,” he said. would put pressure on retailers to reduce prices. a long time: they are paying too much for fuel and contributing to very high profits ACCC study key findings The study found that since 2012-13 petrol prices for retailers in the area. Competition in the • Cairns service station owners are making in Cairns have consistently been about 11 cents Cairns fuel market is weak and, unfortunately, per litre higher than in the five largest cities 38 percent more in net profits than the it is consumers who are paying for this at the Australian average. in Australia, including Sydney, Brisbane and bowser.” Melbourne. The study found that the average net • Motorists are paying about 11 percent per profit per petrol station in Cairns was about 38 Mr Sims said the study found that, despite litre more than in capital cities. percent higher than the average net profit across the poor competition, there was no breach of • Main reason is lack of competition. other (190) sites around Australia in 2015-16. competition or consumer laws. “The report • If there was competition the ACCC found that the main reasons for the higher The ACCC estimates that if competition existed estimated prices should be 4-5 cpl lower prices in Cairns were higher retail profit than current levels. in Cairns prices should be 4-5c a litre less and, margins on petrol, higher wholesale prices and collectively, motorists would save $3.5 million a year. higher retail operating costs per litre. • The study covered 35 retail petrol sites in Just 100km away, in the much smaller Innisfail, Cairns, in a 15km radius from the post “Compared with historical retail margins and profits office in Sheridan Street. prices have generally been lower than in and those of similar-sized towns, retail margins and Cairns, which Mr Sims attributed to the profits in Cairns are currently very high.” Glass’s Vehicle Data
Dealer Website Data Pack - Tailor Made!
Glass’s Research Data (GRD) is a comprehensive database of Australian vehicle specifications, prices and standard and option features for your dealer website.
Features include: • Detailed passenger and light commercial vehicle descriptions • Over 105,000 vehicle year lines from current new models back to 1960 • Comprehensive specifications, pricing, colours, dealer delivery fee, photos and standard and options
Contact us now for sample data tailored to your needs T (03) 9657 8200 E [email protected] FEATURES Australian Automotive Dealer Association AHG HAS A POSITIVE OUTLOOK ON THE FUTURE
of consumer credit conditions, which impacted on finance and insurance income.
“We have commenced the restructuring of the automotive division and erth-based Automotive Holdings AHG Managing Director, John implemented a number of cost reduction Group (AHG) has announced a drop McConnell, said in a statement that AHG initiatives that will mitigate anticipated Pin its annual net profit of 38.4 per cent. was now in a stronger position to address insurance commission changes in the short-term challenges in automotive FY2018.” The fall was expected and comes as a and take advantage of opportunities for result of the company's restructures, as further industry consolidation. VFACTS figures show that new vehicle well as one-off costs associated with its sales in Western Australia have fallen 22 refrigerated logistics business. “It is pleasing that the performance of per cent since their 2012 peak; however, our dealerships in New Zealand and the the state provides 23.7 per cent of AHG's Profits fell to $55.5 million for the eastern states of Australia was strong,” he market share, which is a 30 per cent 2016/17 financial year, although revenue said. improvement on 2012 numbers. was up by 8 per cent, to $6.08 billion. Operating earnings before interest, tax, “FY17 was a challenging year in With the WA economy expected depreciation and ammortisation were automotive, given the acknowledged to stabilise, AHG predicts a small down 4.2 per cent to $216 million. decline in the new vehicle market in improvement in its operating Western Australia and the tightening performance in the 2018 financial year.
CAPTURE MORE LEADS WITH VALUATION MODULE
It’s as easy as 1, 2, 3! 1. Visitors to your website complete their details 2. They get an estimated valuation based on Glass’s data 3. You capture them as a lead to follow up!
Learn More
dealersolutions.com.au 1300 66 11 33 FEATURES Australian Automotive Dealer Association AUTOSPORTS GROUP BUYS BMW MELBOURNE
utosports Group Limited Melbourne recently announced intention to sell its and partners to guarantee the highest levels of has bought BMW Group Australia's Southbank property located at City Road. customer service.” Afactory-owned dealerships including BMW Melbourne, Mini Garage Melbourne The purchase consolidates ASG's presence in ASG Chief Executive, Nick Pagent, said the and BMW Body Shop. the BMW, BMW Motorrad, Mini and Alpina collaboration would be beneficial for both markets following its acquisitions of Doncaster businesses. The $22 million purchase will be completed and Bundoora BMW earlier this year. ASG in the final three months of the year under the said in its ASX announcement that BMW “This acquisition is a perfect strategic and proviso that all current business operations, Melbourne achieved revenues of $236 million geographic fit for Autosports Group. We’re staff and processes of the South Melbourne for the 12 months ending 31 December 2016. looking forward to deepening our relationship and Southbank-based businesses will be with the BMW Group in the important market retained. BMW Australia Chief Executive, Marc- of Melbourne,” he said. Heinrich Werner, described the move as Southbank Motorcycles is also part of the deal, strategically important. Autosports Group currently owns 35 new and with the combined business to be renamed used luxury dealerships in Melbourne, Sydney 'BMW Melbourne'. “BMW Group is about to experience a massive and Brisbane, including Audi, Volkswagen, influx of exceptional product,” he said. “We are Mercedes-Benz, Bentley, Alfa Romeo, Volvo, The sale is completely separate from BMW's ensuring we have a seamless network structure Maserati and Lamborghini. FEATURES Australian Automotive Dealer Association
OVERHAUL MARKETING STRATEGY: EXPERT
digital marketing expert says Dealers tools to best accommodate the customer, not He said the best strategy was to remove as need to overhaul their marketing and facilitate the sale. many barriers and friction points as possible, Aretailing strategies to focus solely on including the sales person-business manager the customer. “There’s been an enormous investment in ‘loop of pain’. technology, but on its own that stuff does MediaDigitalX Managing Director, Simon Van nothing,” he said. “You circle through these people, have to Wyk, told the 2017 Mumbrella Automotive shake their hands, introduce yourself. There’s Marketing Summit last month that the car “It’s just technology; it’s a hammer. It has to no need for any of that; it could all have been buying process had not changed for decades be used; the data has to be dealt with. None of moved through the system with one person,” and neglected the customer. that has really happened and a lot of initiatives he said. have gone backwards. This is because they’ve Mr Van Wyk said economic conditions been handed over to the Germans or the The attention to detail should go towards supported the purchase of a new car, but Japanese, thus we’ve got global initiatives so easing the customer experience and from there Dealers were failing to take advantage of the every website looks the same, works the same the sales strategy will come naturally. opportunities presented by technology. and operates the same. But the customer experience…is actually very local; it’s done “People can’t be bothered with queues,” Mr He said sales people had to use modern around the corner from your home.” Van Wyk said.
The Dealer’s Choice for Over 40 Years
Washes in Under 90 Seconds Less Water & Chemicals Lowers Labor Costs Better Process
References Available Proven Results Made in the USA Proven Products Proven Reliability Proven History Nick Howard Local Representative: [email protected] BroadwayEquipment.com FEATURES Australian Automotive Dealer Association NISSAN AUSTRALIA'S NEW MANAGING DIRECTOR
issan Australia has replaced sacked former Chief Executive, Richard NEmery, with a new Managing Director, Stephen Lester. Mr Emery was fired in late August following a poor sales performance that saw Nissan Australia's market share fall by 12.3 per cent in the last financial year. Nissan's local share of the car market dropped to 4.4 per cent in July, placing it behind Hyundai and Kia. Renault Nissan Alliance chief, Carlos Ghosn, told reporters when he visited Australia in June that his group of companies would go “on the offensive”. Mr Ghosn said Nissan and Mitsubishi “could do much better”. “I have a hard time understanding why Nissan cannot hold more than six per cent Regional Senior Vice President of Nissan Bathurst 12 Hour campaigns. His departure market share in Australia,” he said. Asia/Oceania, Yutaka Sanda, said Mr Lester’s raises questions about whether the brand will Mr Lester took up his new position on arrival at Nissan Australia coincided with continue to compete in Australia's Supercars 4 September. He has been in the motor plans for the brand’s next direction. program. Nissan is contracted to participate in the 2018 season. industry for 15 years, including the last two “He brings to our Australian team strong years as Managing Director of Infiniti in experience, knowledge and business-building “Richard Emery has successfully guided our Canada. His previous experience includes skills,” Mr Sanda said. Australian operation with steady leadership regional management and brand marketing and business improvements since 2014,” Mr positions with BMW Group, including Nissan gave no reason for Mr Emery's Sanda said. two years’ development with BMW AG in dismissal; however, he was known to be Munich, Germany, handling exhibitions, frustrated with the brand's market share in The day before his sacking Mr Emery spoke motor shows and the managing of Australia and was an outspoken critic of at the launch of the 370Z Nismo, saying international branding initiatives. government’s lack of action regarding electric the market should not expect a new Nissan vehicle infrastructure. mainstream passenger model for at least 18 In Canada he was responsible for retailing months. Instead, the company will continue operations, improving business performance Mr Emery was the driving force behind to rely on SUVs, light commercials and sports and growing the Nissan luxury/performance Nissan's motorsport endeavours and was cars. arm’s 38 retail sites. also heavily involved in Nissan's successful
Turnkey workshop fitouts improve your ROI Complete solutions: Design, Planning, Project Management
Invest in the area of your business that makes you money: > Engage more, sell more > Retain clients > Increase your work bay efficiency > Attract and retain talent
To see how we do it contact our workshop fitout experts today.
www.levanta.com.au p. 1300 577 541 FEATURES Australian Automotive Dealer Association PRIUS TURNS TWENTY
t is 20 years since Toyota launched the compact enough to be registered with a 5-series Prius, the world's first mass-produced number plate, the First-generation Prius was Ihybrid passenger vehicle. Based on the a stockier sedan than the current generation. Latin phrase meaning 'to go before', the The First-generation Prius had a fuel efficiency Prius truly proved to be the forerunner to rating of 28.0 km/L and came with the tagline: today's surge of electric vehicles. "Just in time for the 21st century”.
We take a brief look at its evolution: 2003-2009 Second-generation Prius
1993 Prius concept car exhibited at the 31st Completely redesigned, the new model was Tokyo Motor Show equipped with the Toyota Hybrid System II – an evolution of the previous THS – which Seeking to develop a ‘vehicle for the 21st improved its 10-15 test cycle fuel efficiency 1.8 litres. The Third-generation Prius achieved century’, Toyota launched the G21 Project at rating to 35.5 km/L. The highest point of the what was then the world's leading 10-15 test the 1993 Tokyo Motor Show, as a means of vehicle was now above the driver's head and cycle fuel efficiency rating of 38.0 km/L. promoting technological development. Efforts sloped gently downwards in both directions in a began, searching for ways to achieve a ground- ‘triangle silhouette’. 2015- Fourth-generation Prius breaking improvement in fuel efficiency that would light the way in the 21st century. 2009-2015 Third-generation Prius The Fourth-generation Prius, while inheriting the ‘triangle silhouette’ design, now featured a 1997-2003 First-generation Prius The Third-generation Prius featured a slightly more aggressive appearance with a lower centre larger body than previous models and the THS of gravity, with an outstanding fuel efficiency Launched in October 1997. With a body engine was increased in size from 1.5 litres to rating of 40.8 km/L
TOTAL SURFACE Platinum PROTECTION EXCLUSIVE TO AUTOMOTIVE DEALERS
Gtechniq was born out of pure science, the love of cars and the desire to create the best car care products, with a focus on protective coatings – the cornerstone of our success.
Features: Exclusive to automotive dealers Unprotected Protected National lifetime warranty UV Rays Industrial Acid Detergent UV Rays Industrial Acid Detergent fallout & dirt rain fallout & dirt rain Nano composite coating Scientifically proven Extreme durability Interior protection includes BioCote Protects against UV light, bird and bat droppings, acid rain, tree sap, bug splatter as well as road grime without Platinum protection with Platinum protection LIFETIME WARRANTY
Contact Phil Ward on 0414 991 419 2017 AADA NATIONAL DEALER CONVENTION & EXPO Australian Automotive Dealer Association
The 2017 AADA National Dealer Convention & Expo AADA would like to say thankyou to our Sponsors for your ongoing support!
SUPPORTING PRINCIPAL SPONSORS: ASSOCIATIONS:
Motor Trades Association Motor Trades Association New South Wales Western Australia
Motor Trades Association Queensland Motor Trades Association South Australia
PLATINUM SPONSORS:
Tasmanian Automobile Victorian Automobile Chamber of Commerce Chamber of Commerce
Motor Trades Association Federal Chamber of Northern Territory Automotive Industries GOLD SPONSORS:
National Automobile China Automobile Dealers Association Dealers Association
PicklesVentures
Brazil Automobile Automotive Dealer Day Dealers Association Conference, Verona, Italy
INNOVATION, TECHNOLOGY & ENGAGEMENT We are all about Partnering for Growth
Dealers join us because of what’s missing from their DMS supplier. Partnership.
“We have more transparency over our business “The consistency of Auto-IT’s personnel is one than ever before. Auto-IT has been a great thing that’s stopped us going to a competitor, where you’re just a number. It’s been a very them to any other dealer group in Australia” good relationship over many years.” partner, and we would definitely recommend Brendan Pickering | Pickerings Auto Group Paul Burgess | Wakeling Motors
Our processes and our people make it easier for you to execute and win.
Australia’s fastest growing DMS auto-it.com/aada | [email protected] SPONSOR FEATURE
AUTO-IT OPENING BREAKFAST - TUESDAY 19 SEPTEMBER 7:00AM - AADA CENTRAL WHAT IS YOUR COMPETITIVE ADVANTAGE?
or decades businesses have relied on a As a Dealer management solution provider end it all comes back to this. The paradox mix of technological innovation and with over 30 years in the game, Auto-IT of our rapidly changing industry is that, Fmarketing platitudes to deliver their has seen a lot of changes in the car industry. despite (or because of) technology and the unique selling proposition. But today’s market Likewise, they have witnessed many businesses democratisation of knowledge, the one is evolving so rapidly; the rate of change on both sides of the fence cling to old and tired competitive advantage every business can is up there with the birth of the industrial methods of doing business. employ is to understand the person on the revolution. other side of the transaction and to deliver Chief among them are practices that serve something especially for them. Consumers are more connected, more the business first and the client second. Every informed and more opinionated than at any business needs processes and Auto-IT are big The right technology and the right advice can time in living memory. Social media – and, proponents of those that are efficient and well make this a lot easier. But, like electricity, it with it, social proof – along with research conceived. But many of those employed today must be understood and delivered in the right and review sites, fresh-thinking start-ups place unnecessary obstacles in front of clients way by people who know what they’re doing. and escalating expectations of the modern and customers; they run counter to the needs Otherwise, like electricity, it can harm just as consumer, all conspire to alter the landscape and wishes of those from whom we derive our easily as it helps. faster than many players can adapt. profits. Auto-IT has some amazing customer-focused Where once it was unique to have a website, a As a rapidly growing business in an industry technology, from its Dealer management mobile app (or ten) and remote interactivity, that’s witnessing seismic upheaval, Auto-IT has systems that scale from medium to very large these are now baseline expectations. long understood that systems, processes and businesses, to its suite of clever mobile apps, Consumers expect more. They expect to be technology – on their own – are never enough right through to the best BI solution in the served where and when it suits them and on to meet the market’s needs. Because the market industry. the platform they prefer. They expect you to is made up of people - not numbers. understand their preferences and to customise But the company's true competitive advantage your offering accordingly. People have challenges and problems that is its understanding of the people it serves require solutions. They have wishes with and the challenges they face, and its deeply Most of all, they expect you to listen, price tags attached to them and they have entrenched culture of wanting to help them understand and respond to their wishes in a opportunities they'd love to explore. And in ways that go far beyond the typical vendor/ way that shows you know what they want, you everyone views these issues in their own client relationship. know what to offer and, most of all, know what unique way; they cannot be pigeonholed and you’re talking about. they don’t like to be categorised. In Auto-IT's 30 years of business, one strategy remains unchanged: they don’t sell to people; Consumers aren’t so easily fooled these days. And therein lies the opportunity. In the they partner with them.
automotivedealer.com.au | SEPTEMBER 2017 | 47 Take a fresh look!
Flexible Intuitive Reimagined Functionality
Take a fresh look at eraPower today! eraPower is transforming dealerships around the world by providing an increase to efficiency through features you’ve never experienced before.
Visit pentanasolutions.com
or call 1300 007 925 for more information. SPONSOR FEATURE
PENTANA SOLUTIONS EXPO LUNCHEON - TUESDAY 19 SEPTEMBER 12.30PM - AADA EXPO LOUNGE ERAPOWER – TAKE A FRESH LOOK
About Pentana Solutions
Pentana Solutions core Dealer Management System (DMS), eraPower, continues to transform dealerships. eraPower was designed and developed to be intuitive and flexible while offering reimagined functionality that increases Dealer sales, reduces costs and improves efficiency across the business.
Since installing eraPower into many dealerships across Australia and New Zealand, we’re hearing the same positive feedback multiple times around eraPower being incredibly easy to use and navigate whilst the depth of functionality is a game changer in dealerships. As a result, Dealers are spending less time on training staff and more time on servicing their customers.
eraPower manages the perfect balance between user experience and depth of functionality. The flexibility component means staff can take eraPower to the customer using a tablet or mobile device. Dealership staff are no longer tied to a Pentana Solutions Expo Luncheon food is always delicious, the company desk to perform a wide variety of tasks. stimulating and the conversations lively. Every year, the Pentana Solutions Expo Reimagined functionality is not just Luncheon is a highlight of the AADA As usual, no expense has been spared in marketing hype. We have created for the National Dealer Convention. making the Expo the ultimate networking industry numerous new features such destination. A long-time favourite, the as Repair Order Back Calculate, Trade Delegates enjoy a sumptuous lunch, ‘village’ atmosphere features a central Appraisal and fully integrated Electronic discover the latest and greatest products the meeting hub where you can dive into Vehicle Health Check, to name just a few industry has to offer, explore profitable and conversation with delegates from Australia on which dealerships are very focused. sales generating new products and services, and overseas. The additional increases to functionality network with colleagues and re-engage we haven’t mentioned here are not only with counterparts from all over Australia. Speak to Pentana Solutions staff at the improving the efficiency of everyday luncheon or visit their stand to the right- tasks, they are actually effecting a direct Pentana Solutions has been a wonderful hand side of the catering area for an increase to the dealerships’ CSI and friend to AADA throughout the years and eraPower product demonstration. we are thrilled they have once again chosen bottom line. to sponsor our Trade Expo luncheon. The
automotivedealer.com.au | SEPTEMBER 2017 | 49 VISIT COX AUTOMOTIVE AT THE AADA CONVENTION
Speak with team members from Cox Automotive at the AADA Convention to find out how we can provide integrated solutions via our brands, throughout the retail and wholesale life cycle of a vehicle. Cox Automotive is committed to helping Australian dealers sell more new cars, sell more used cars, retain and grow service customers and improve their overall trading. For more information email [email protected]
INVENTORY MARKETING
SALES SERVICE SPONSOR FEATURE
COX AUTOMOTIVE KEYNOTE ADDRESS, THE HON. PETER COSTELLO AC - TUESDAY 19 SEPTEMBER 3:30PM - AADA CENTRAL DEALERS AROUND THE GLOBE WINNING THE BATTLE FOR POST-SALE LOYALTY
time helps Dealers to book more appointments and drive higher Xretention.
In Australia and right around the world, digital-driven Dealers are winning the battle for post-sale loyalty. Savvy Dealers understand that connecting with customers on their terms can help them to improve service retention and boost revenue. No matter which international market you operate in, with Gary Martin, Chief Executive Officer of Cox Xtime’s analysis, which spanned from May increasing pressure on new and used vehicle Automotive Australia, encouraged dealership 2016 through May 2017, found compelling the margins, it has never been more important to staff to attend one of Tully’s sessions. “This connection between online scheduling and learn how to maximise profitability from your workshop will share some best-practice customer loyalty. service department. stories from a leading dealership group and help attendees understand the link Additionally, Xtime analysis shows that Xtime, a Cox Automotive company, has between improving customer experience and empowering service advisors with driveway been working with OEM’s and Dealers in improving their bottom line.” process and technology yields an 8% Australia and worldwide, to help them win this increase in service retention (Q3 2016 data). battle. Xtime transforms the way car owners “We know that consumers around the Xtime and Cox Automotive data show that experience service in franchise dealerships. world have more choices now than at any with a few simple technology and process The company is the exclusive or preferred other time in history, and their choices in enhancements, Dealers can drive revenue and provider for 29 major global automotive automotive are no different. Xtime helps customer loyalty by tapping into their service manufacturers in the US, Canada, Europe and Dealers offer a leading consumer retail departments’ profitability potential. Australia, and services over 8,000 dealerships. experience, working with service departments to increase revenue through increased loyalty. “Consumers today are accustomed to an As part of this year’s AADA Convention, Workshop participants can learn why the always-on environment, and dealerships Xtime has organised for guest speaker Tully service experience matters so much and how need to adapt to meet those demands if they Williams, Fixed Operations Director at Del your service teams can reshape the customer hope to deliver superior customer service,” Grande Group in the US, to share his insights experience to meet, if not exceed, rising said Jim Roche, Vice President, Marketing & for improving the service customer experience consumer expectations.” Managed Services, Xtime. “Online scheduling and driving the dealership business forward. and technology enabled driveway processes Built over a 30-year automotive career in Research just released in the US by Xtime are highly effective ways to meet customers on California, Tully will discuss his operational reinforces the importance of why the their terms.” approach, and attendees at his workshop service customer experience matters and will hear how the disciplined combination of how a service department can use digital To find out more, visit xtime.net.au or come process, technology, people management and technologies and process improvements to and see Xtime on the Cox Automotive stand attitude can put their dealership on the path of reshape it. The company has found that 23 at the AADA Convention. Xtime will be improved performance. per cent of customers book their service visits exhibiting with fellow Cox Automotive brands online, outside of a dealership’s business hours. CarsGuide, Dealer Solutions and Manheim.
automotivedealer.com.au | SEPTEMBER 2017 | 51
SPONSOR FEATURE
MOTORONE BUSINESS BREAKFAST - WEDNESDAY 20 SEPTEMBER 7:00AM - AADA CENTRAL CUSTOMERS COME FIRST AT MOTORONE
here are many keys to success, none more Value and relevancy remains of paramount aftermarket products as well as the way they’re Timportant than placing customers first. importance marketed. MotorOne don’t seek the limelight. For them Value and relevancy certainly helps to ensure There’s also a strong focus on ongoing it’s about delivering on promises to their dealership that car buying customers benefit from all the performance management for Car Care customers so they can then offer their customers genuine advantages of car care products and Consultants. MotorOne are keen to ensure they’re best-of-breed products. Products that are tested, services, and none more important than relevancy instrumental in providing technical and also tested and tested again to ensure they offer a real for today’s consumer. There simply has to be a sales training to deliver a show-stopping sales solution and enhance the car buyer’s driving value proposition shining through to convince pitch to realise and maximise every opportunity. experience. customers they’ve made a sound investment Benchmarking and performance management and not a feeling that they’ve been ripped-off. of a dealership’s Car Care division remains very Operating for over 45 years, MotorOne position Understandably, paint protection isn’t always much a core competency. themselves as ‘aftermarket specialists’. Striving the customer’s first thought when they enter always to be first-to-market with a car care range a dealership. It’s up to the combined efforts of One step ahead with unmatched solutions that includes latest technology formulae, whether dealerships and aftermarket partners to help show Offering unmatched solutions that meet the it’s surface protection like Protektiv and now their customers a broader spectrum of relevant car care needs of car buyers, being first-to-market with NEW Protektiv HYDRO, or RELOAD, designed solutions that fit (or enhance) their lifestyle and next generation vehicle protection and, most to rejuvenate and bring back the shine on pre- driving pleasure. owned vehicles. importantly, placing dealership customers first Research and listening to market trends has certainly helped MotorOne stay out front. But as many readers will know, their product Coupled with a long history of delivering proven portfolio stretches far beyond interior and exterior MotorOne have a strong focus around helping Car results and consistency in supplying high quality vehicle protection products: smartphone apps for Care Consultants identify what’s most valuable to products, this endorses their market-leading safer driving as well as technology for tracking and their dealership around their customer’s purchases. position. monitoring vehicle location and usage. Providing customers with education around ‘car care’ definitively helps to identify that value to MotorOne have been a major partner of the Playing the leading role as the industry’s major the customer. Research and listening to market Australian Automotive Dealer Association partner in this space, MotorOne are very much trends, including the influence of digital, is what (AADA) for 12+ years, and have helped to shape the one-stop-shop in an ever-expanding national gives MotorOne the edge. Their knowledge the automotive aftermarket industry for more group that includes many recognisable companies: and confidence to put forward products that than four decades. AutoKlene, Schmick, Prostream, Protech, fit today’s consumer lifestyle aspirations means And, like their products, MotorOne have shown AutoXtreme, Autotech and Customers for Life. they’re extending the boundaries of traditional they stand the test of time. TOTAL HEALTH CHECK presented by carsales
FREE MASSAGES WHEN YOU HAVE A DEALERSHIP HEALTH CHECK AT THE CARSALES AADA BOOTH
Dealership Health Check Wellness massage In just 15 minutes, we will take a look at Post your Dealership Health Check, your current online presence, examine the ‘3 Minute Angels’ will provide you how you compare to the wider market with a wellness massage to keep you and demonstrate how little changes fresh and focused for the rest of the can result in big performance gains. convention.
Book in for your 15 minute Dealership Health Check: Email [email protected] to make an appointment
Find us at Booth 30 & 32 ICC Sydney | Tuesday 19–Wednesday 20 September 2017 carsales is proud to be a principal sponsor of 2017 AADA National Dealer Convention SPONSOR FEATURE
CARSALES LUNCHEON - WEDNESDAY 20 SEPTEMBER 12:30PM - AADA CENTRAL RICCIARDO DRIVES CARSALES’ UNIQUE AUDIENCE TO 2,000,000-PLUS, 2017 HIGH
he results are in and July proved to be a engagement with Australian car buyers and drive car buyers in making more informed enquiry bumper month for Australia’s No 1 auto traffic to stock listings. and purchase decisions, and help to drive more Tclassifieds website, carsales. qualified enquiries for Dealers. Ricciardo was named as carsales’ global brand carsales recorded a Unique Audience of 2,114,000 ambassador in February 2017 and, ever since, And there’s more to come. in July, as measured by Nielsen’s Digital Ratings has been helping inspire car buyers and their Monthly, the digital measurement solution purchase decisions through his own personal love Through the development of in-house search that looks at Australia’s total digital audience, of driving. technology, carsales is reimagining and redefining unduplicated, across PC, smartphone and tablet how buyers can quickly and easily search for their for both web browsers and apps. The Australian has enjoyed a stellar 2017 season next car, with the input of genuine Australian car to date, including a miraculous win from 10th on buyers. Keep your eyes peeled. According to Nielsen’s findings, carsales’ result was the grid at the Azerbaijan Grand Prix and another more than 1,200,000 higher than CarsGuide and podium place at the recent Belgium Grand Prix. For Dealers, the leading AutoGate Inventory and 1,400,000 higher than Drive. Prospect Management System has been upgraded Commitment to elevating the car browsing with an intuitive reporting dashboard, featuring The July result was carsales’ highest so far for experience for Australian car buyers and key real-time metrics and actionable insights the 2017 calendar year and underpinned by the Dealers through an efficient interface. tremendous consumer response to the company’s ongoing ‘The best re-gift ever’ campaign. In addition to the high-profile marketing AutoGate, through the brand new SMSConnect initiatives, carsales has elevated the user experience solution, also now empowers buyers to place an ‘Re-gift’ campaign drives website traffic for Australian car buyers through key desktop, SMS enquiry on a stock item directly from the mobile and app design enhancements. carsales mobile website. Featuring Australian Formula 1 superstar and carsales brand ambassador Daniel Ricciardo, ‘The Price-conscious buyers can now elect to search by This powerful solution will help Dealers convert best re-gift ever’ is carsales’ first retail marketing a monthly repayment price, and an improved New more stock views to qualified enquiries by campaign for FY18. Car Showroom comparison tool enables buyers to capturing a personal and accurate phone number. better compare purchase options based on features Over 60% of visits to carsales.com.au now take The campaign was designed to increase and specification levels. Both enhancements assist place on a mobile device.
automotivedealer.com.au | SEPTEMBER 2017 | 55 YOU HAVE OUR CONTINUED SUPPORT Allianz Insurance has and always will be committed to supporting the Australian automotive industry. Our broad range of F&I tools and programs contribute to our partners sustainable dealership business models and include: • The Allianz Advantage F&I Training Academy • New Sales Systems with improved sales functionalities • Our commitment to Genuine Parts • New and enhanced products delivering improved insurance outcomes for customers. For more information on how Allianz can support your dealership, contact your Allianz Dealer State Manager. allianzadvantage.com.au
Allianz Australia Insurance Limited ABN 15 000 122 850 SPONSOR FEATURE
ALLIANZ "A" PARTY - WEDNESDAY 20 SEPTEMBER 5.30PM - AADA CENTRAL ALLIANZ 'A' PARTY
About Allianz
Allianz has for many years been a valued supporter of AADA. Providing insurance to more than three million Australians, Allianz Australia was AADA National Dealer Convention with the singles Weir and Mascara. She won named the Large General Insurance is not ‘all work and no play’. We pride five Arias and achieved several top ten hits, Company of the Year in 2016. The ourselves on producing a great social including Reflector, a Number One album A company insures everything from cars and entertainment program and in 2017, and single. Ella is the youngest person to boats to home and contents, and also with thanks to Allianz, we are proud to and first woman to have received APRA’s provides workers compensation services bring you one of Australia's most popular Songwriter of the Year award. to about a quarter of Australian workers. singers of the past two decades. Originally from Violet Town in country With more than 4,300 staff in Australia It seems strange to talk of Ella Hooper in Victoria, Ella has travelled extensively, and New Zealand and a combined terms of decades given she is still just 34 performing in Europe, Asia and the US. She premium income of over $4.42 billion, years of age, but the fact is it is more than recently completed a Killing Heidi reunion Allianz also contributes to a variety of 20 years since she burst onto the scene with tour of Australia with her brother and is community activities and participates in Killing Heidi, the band she formed with her now back to concentrating on her solo a workplace giving program. brother Jesse, and which won Triple J Radio’s career. Unearthed initiative in 1996. AADA appreciates their ongoing What a rocking way to finish the support and thanks Allianz for helping After that her career went from strength Convention! Join us and let your hair down us bring this special event to you. to strength, including massive hits in 1999 at this fun and entertaining event.
automotivedealer.com.au | SEPTEMBER 2017 | 57 STOP TRYING TO MANAGE YOUR REPUTATION...
START CREATING IT! NOW WITH GOOGLE REVIEWS MADE EASY!
LEVEL 1, 350 SOUTH ROAD, HAMPTON EAST, VICTORIA PH: 1300 880 057 • www.snap21.com.au Reviews • Social Media • Reputation SPONSOR FEATURE SNAP21 NOW WITH GOOGLE REVIEWS: NOT JUST A REVIEW PLATFORM
ealers know that positive online reviews With Snap21, more than 54 per cent of minutes and you get your car on the next are important, but did you know that customers post a review. Of that 54 per cent, day...just like that...great!” D90% of customers will read online reviews one-third share their photo and review on their before visiting your business? An opportunity personal social media, and one third will leave • “Happy first car experience - wonderful to increase the number of reviews you receive by you a Google Review. That is the kind of organic staff and process.” 500 per cent should be too good to pass up. referral you can’t buy – except you can! • “Excellent service and trusted Craig! Will Reviews are hard to get. Most people don’t go Instead of spending thousands of dollars per definitely be coming back to Phil Gilbert to the effort of posting a review unless it is a month chasing such great publicity, Snap21 costs Toyota in the future and recommending it negative one about which they feel particularly you a fraction of that and provides hundreds to all my family and friends.” strongly. of positive reviews every day. Snap21 lets you • “My experience was quick and easy. target review websites such as Google, Facebook Fantastic sale service from Lance, and So, if there were a way to grow that to over 54 per and Twitter. You will also receive review alerts the girls were very pleasant to deal with cent, you’d be all over it, right? notifying you every time someone posts a review getting the finance and delivery sorted. I about you. Snap21 has taken a holistic approach to a Dealers would absolutely recommend to everyone Reputation. With pressure from manufacturers Here are some of the outstanding reviews looking to buy a new car to go to Lilydale to increase your Google reviews, Snap21 has garnered via SNAP21.These are directly posted Hyundai.” delivered an unstoppable platform that nothing straight to your business’s website and Facebook Snap21's reporting features let you see exactly in Australia can compete with. page. And with one click of a button your how your team is performing. You'll also receive customer can share it on their social media If you don’t know about Snap21, now is the time a monthly overview report detailing how your platforms too. Think of the reach: to find out. It is the only reputation management team is doing and how many people have read tool in Australia specifically designed for the • “Outstanding service experience from your reviews. automotive dealer. It also doubles as a highly beginning to end.” effective social media tool, and now collects Positive reviews also result in an improvement Google reviews. • “Extremely good service, very friendly staff in your factory CSI rating, and consequently, and 100% help given.” reward. The number one reason customers don’t leave reviews is that they’re not asked to. The beauty of • “Was well supported from initial enquiries If you’re not using Snap21, you should be. A new Snap21 is that it doesn’t feel like you’re soliciting to the point of driving off the lot.” platform, with new features, makes for a product reviews – you’re providing your customers with a your dealership can't go without. photograph of them with their new car. • “Awesome, simple & easy...talked for a few SPONSOR FEATURE THE FUTURE WITH ERIC GENESIS ow great is it to walk into a dealership going to be expensive and it’s the second time to cover a combination of circumstances, and pick up your new car? It’s just one of you’ve rescheduled your date and probably the including car, extended warranty, tyre Hthose perfect experiences that can build last! and wheel, GAP, RTI, loan protection and lifetime relationships. As your keys are handed termination, and total assist for associated loss to you by a smiling sales girl who has become This could be your customer. Depending expenses. your friend, you can’t wait to jump in and roar on their insurance cover they could be well down the street. The sun is blazing and you’re protected or thousands of dollars out of “We’re really excited about the potential of two minutes from Beach Road. You smile as pocket. Are you partnered with the right the market and our ability to lead change in you inch the sunroof open and press your foot insurance team and supported by a world- this industry,” says Malcolm Tilbrook, Eric down on the accelerator. What a glorious day. class process so you customer had the CEO. “Our expert team members have been opportunity to select the right cover for their working on project Genesis for a long time and Fast forward to six months later – you’re circumstances? we think its launch early next year will redefine walking out of an expensive restaurant where the industry, creating better value for everyone the service was poor and your client was boring. We’re pretty impressed with the development involved. We’re currently working with a You are late to meet your date, but as you head of Eric’s Genesis system, which will ensure few innovative and ambitious dealerships to towards where you parked your car, it’s not every customer is treated fairly and offered the launch Genesis with us. They will have the full there. You stop and your heart starts to race. right products with value for money benefits. support of our extensive national training and Your fists clench in frustration. Then your mind Eric Insurance combines the expertise and marketing departments to deliver an enhanced starts doing the inevitable mental catalogue as talents of Avea and the dealer distribution level of compliance and customer experience.” you dial the police, knowing it’s unlikely you’ll rights of Swann and their former team see your car again. What was in it? Laptop, members to form a new, innovative entity Want to be with an agile, dynamic insurance compendium, suit jacket, gym gear…... focused on making things better. Offering leader that will exceed your customer’s a range of fully reviewed products targeted expectations? Eric Insurance Limited. Insurance – you know your financier insisted. at supporting financed and cash purchase What was included? Rental car? Stolen items? customers through new and used car Maybe it’s time your dealership made a change Your stomach drops as you connect that this is dealerships, Eric provides tailored insurance for the better.
Genesis. Be First.
To learn more, text your name, dealership and the word GENESIS to 0407 284 453
Eric Insurance Lmiited ABN 18 009 129 793 AFSL 238279 SPONSOR FEATURE FUCHS: LUBRICATING AUSTRALIA
UCHS is the number one independent Focusing solely on lubricants allows FUCHS constantly improves and customises solutions. lubricant company in the world, which for to work with automobile manufacturers from Fmore than 125 years has been supplying the development stage onwards. The company’s The company’s values of Trust, Creating Value, Australians with specialised lubricants. investment in research and development Respect, Reliability, and Integrity result in has lead to advances in lubricant technology an ethical approach to technical leadership, Headquartered in Germany but with and performance-enhancing oils, increasing acknowledging responsibility towards manufacturing facilities in Melbourne, Perth effectiveness, efficiency, safety, reliability and stakeholders, society and the environment, and Newcastle, 90 per cent of its products are sustainability of its products. while delivering leading technology and first manufactured locally. class service. With an emphasis on people, FUCHS has Renowned for its personalised customer care, risen to its lofty status by caring about both its FUCHS is heavily involved in motor sport, the company bases itself on the three pillars of employees and its customers, fostering a climate sponsoring some of Australia’s leading teams in Lubricants, Technology, and People. of cooperation, communication and innovation. V8 Supercars and drag racing, including Brad Jones Racing, Team 18, Zappia Racing, and FUCHS makes more than 10,000 different The holistic approach to lubricants means the Lamattina Top Fuel Racing. lubricants for a variety of industries, including company not just makes, but understands the mining, engineering, food, and of course the need and function of the 30 different greases Almost wherever there is machinery in automotive industry. and oils cars need. The close relationship Australia, you can bet a FUCHS lubricant is with customers creates a feedback loop that helping things move smoothly. SPONSOR FEATURE FULL SYNTHETIC ENGINE OILS: WHY ARE THERE SO MANY DIFFERENT 5W-30S?
nce upon a time most cars used a mineral engine used in engines that deliver improved fuel performance. vehicles, including Mercedes-Benz and BMW. This oil oil – typically a 20W-50 viscosity grade – and then Suitable for both petrol and diesel engines and when the contains the additives necessary to meet GM dexos™ 2 Oit was 10W-40 and now it is fully synthetic 5W-30. Ford specification WSS-M2C-913D is required. requirements which include lower exhaust emissions, However, there is not just one engine oil; there are many. Specifications: API SL/CF, Ford WSS-M2C-913D, ACEA engine durability and improved fuel efficiency. The MST Why is it so? This article uses the example of the 5W-30 A1/B1, ACEA A5/B5 stands for Mid SAPS Technology. viscosity grade to explain the difference between various Specifications: API SN /CF, ACEA A3/B4, ACEA C3 MB requirements set by manufacturers. SynPower ENV C1 5W-30 229.51, VW 505.01, 502.00 505.00, BMW Long Life 04, 5W-30 is currently the mainstream engine oil available on This is a catalyst-compatible engine oil specification GM dexos™ 2 the market. What follows is a brief summary of the range designed for use in modern diesel engine vehicles, SynPower MST C4 5W-30 of fully synthetic engine oils from Valvoline in 5W-30 including Ford, Land Rover Mazda and Mitsubishi. The range and their applications. ENV stands for Environmental Neutral Vehicle while the This engine oil specification is designed for diesel engine C1 refers to the European requirements of ACEA C1 low vehicles fitted with exhaust after treatment systems. The SynPower 5W-30 SAPS catalyst compatible engine oils, which helps improve C4 refers to the European requirements of ACEA C4 low The most broadly-based petrol engine oil within the the life of DPF and TWC emission systems. SAPS catalyst compatible engine oils which helps improve SynPower products, which also carries the GM dexos™ Specifications: ACEA C1, Ford WSS-M2C-934-B the life of DPF and TWC systems. 1 approval. Suitable for use in various vehicles, including Specifications: ACEA C4, Renault RN 0720 Holden, Ford, Mazda, Nissan, Toyota, Subaru petrol SynPower ENV C2 5W-30 SynPower XL-III 5W-30 vehicles. The unique additive system delivers improved The high-performance attributes of this engine oil make fuel efficiency, engine durability and reduced exhaust it suitable for use in a range of European diesel engine This is a high performance oil specified for use in emissions. vehicles. The C2 refers to the mid SAPS level and catalyst Volkswagen, Audi and Skoda vehicles. This lubricant Specifications: GM dexos™ 1, API SN, ILSAC GF-5. compatibility of the oil to increase DPF and TWC life. is suitable for both petrol and diesel engines fitted with Specifications: API SM/CF, ACEA A5/B5, ACEA C2 advanced emission systems. Also suitable for use in SynPower FE 5W-30 Mercedes Benz and BMWs. This engine oil specification is designed primarily for SynPower MST 5W-30 dexos™ 2 Specifications: VW 504.00 / 507.00, ACEA C3, MB 229.51, Ford engines and also covers other manufacturers’ Suitable for different European diesel and petrol engine BMW LL-04 requirements. The FE stands for fuel efficiency and is
VALVOLINE IS THE RIGHT CHOICE FOR YOUR DEALERSHIP HERE’S A FEW REASONS WHY...
HERITAGE Having first introduced engine oil back in 1866, Valvoline have remained a trusted brand for over 150 years. PRODUCT RANGE No matter the make or model, Valvoline have the GUARANTEED SUPPLY product to suit, including a dedicated Professional With 15 million litres of finished stock held at any Series range developed exclusively for workshops. one time throughout Valvoline’s national warehousing network, you can be assured of supply. CUSTOMER SERVICE With the largest sales team of any lubricant supplier, TECHNICAL SUPPORT you can be assured of industry leading customer service. A team of full time technical experts are at the ready to answer your technical questions. Oil analysis is TRANSITION PLAN also available at our laboratory. We understand there is a period of adjustment when making the switch to a new supplier and thus we FINANCE & EQUIPMENT have a tried and tested transition process in place Finance and equipment available. to ensure the move is a seamless one.
e welcome ou to isit stan 64 67 0 3 to iscuss ow we can cont i ute to ou usiness. lte nati el eel ee to call a een on 0417 422 7 o a k aclu e on 041 366 0 6. Trophy guidelines
Images of the 4X4 Australia of the Year trophy can be supplied upon request. Keep the trophy clear of other objects and on plain backgrounds. Please do not alter the image in any way. Ensure that the 4X4 Australia logo is visible when running at a small scale. When the 4X4 Australia of the Year is announced, images of the trophy with the finalists and winner will be available.
Logo guidelines 14mm The following specifications must be adhered to when publishing the 4X4 Australia of the Year logos. Two different colour options (above) are included, to best suit your collateral. When placing the logo, please The minimum logo size is ensure it is on a clear/uncluttered background to ensure legibility. Do not 14mm and NO smaller use drop shadows or any effects of any kind. Please adhere to the colours, clear-space area and minimum size specifications illustrated below.
COLOURS
YELLOW BLACK CMYK 0-O-100-0 CMYK 50-40-30-100 RGB 255-255-0 RGB 5-24-33
Additional logo lock-ups will be considered and can be supplied on a case-by-case basis. 100,000KM ROADSIDE SERVICE PRICE The logo clear space is the height of the ‘E’ in the word ‘THE’
Note: All filesWARRANTY supplied incorporateASSIST safe areaMENU at 100% scale The right traffic to get your cars moving.
When it comes to driving loads of quality leads, look no further than Gumtree Cars. With so many great benefits, it’s easy to get started:
Simple and Affordable No cost per lead, sign-up or annual fees. Your monthly subscription prices are simply based on the number of listings.
Branding Opportunities With your address, phone number, email and website details, buyers have even more ways to connect with you.
Join Gumtree Cars today gumtreeforbusiness.com.au
GUM0081_GumtreeCars_PressAd_255mmx180mm_FA_01.indd 1 18/07/2017 9:38 AM