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THE VEHICLE DEALER’S NEWS SOURCE MARCH 2020 .COM.AU Could Holden’s history end in dealer battle? p5-6 FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: ADTORQUE EDGE DELIVERING YOUR MARKETING SOLUTIONS Automotive software solutions Driving your business THE VEHICLE DEALER’S NEWS SOURCE All the Auto Industry HOT NEWS every day as it happens on www.autotalk.com.au Subscribe online for FREE twice weekly updates direct to your email. autotalk.com.au/ 2 | AUTOTALK MARCH 2020 | www.autotalk.com.au DEALERTALK SUBARU AUSTRALIA DEALERS SEE INTO FUTURE warm and familiar to our customers, but tells them loud and clear that they are in a Subaru store. “We’ve designed this look to be modular, to fit all shapes and sizes of existing dealerships as very few of them fit this perfectly square plan; with the central customer area at the heart of the showroom. “There are a few items which will be mandatory for every dealership and a number of features that will be optional on a site-by-site basis. Part of our approach is to bring back a bit of fun to retailing. “One of the core principles of this design is to give service customers an enhanced he Subaru Australia dealer network brand – inside one of our cars and in a experience. It will feel more like your local got a glimpse of the future week, Subaru dealership, so our showrooms cafe – somewhere you can kick back Twhen the brand, in partnership and service lounges should be a place and chill a bit while your car is getting with design group CHADA, unveiled a that feels exactly like Subaru,” Subaru serviced, or you can grab a take away new design language for showrooms and Australia assistant public relations and go. service lounges manager Chloe Fraser says. “It’s all about being relatable and Subaru Australia expects to begin rolling “Our new dealership look is all about comfortable for our customers, so their out the new look in showrooms and what’s on the inside, which is where we decision to visit our dealerships when service centres later in 2020. can have the greatest impact on the they have so many other things going on It says the new design language creates customer experience. It should also be in their daily life turns out to be a good an environment that is more inclusive for noted that cost control has been a key call. its customers and aims to be a community element in the design process. “We feel that our new dealership meeting place for people to share the “The aim with this design is to give internal design concepts will set us Subaru passion. customers a warm, comfortable and apart from the crowd and give our “There are only two places a customer welcoming feeling that is just a little bit retailers a point of difference,” Fraser can physically experience the Subaru different; a step into something that feels says. AUTOTALK MARCH 2020 | www.autotalk.com.au | 3 AutoTalk Magazine and autotalk.co.nz are published by Auto Media Group 8/152 Quay Street, Limited. P.O. Box 10 50 10, Auckland City, 1030. Ph. 09 309 2444 MANAGING EDITOR Richard Edwards 021 556 655 [email protected] EDITOR – AUTOTALK AUSTRALIA Robert Barry 021 530 902 [email protected] BMW Group Australia CEO Vikram Pawah presents the BMW Trophy to BMW ASSISTANT EDITOR Brighton dealer principal Adam Davenport. Geoff Dobson 021 881 823 [email protected] JOURNALIST BRIGHTON BMW Sophia Wang 021 240 2402 [email protected] WINS 2019 BMW BUSINESS MANAGER Dale Stevenson 021 446 214 [email protected] DEALER OF THE RECRUITMENT SPECIALIST / PRODUCTION Fran Da Silva 021 933 279 YEAR TROPHY [email protected] GROUP GENERAL MANAGER MW Group Australia has an- introductions and to heighten customers’ Deborah Baxter nounced winners of its annual experience. 027 530 5016 BMW Trophy, MINI Excellence and “Their combined efforts enabled BMW [email protected] B 2019 Dealer of the Year awards. to increase its premium market share Held in Melbourne, the award ceremony and finish the year with 1.1% year-on-year PUBLISHER / CHAIR Vern Whitehead recognised and celebrated the sales volume growth. This is a fantastic 021 831 153 achievements of the 43 strong BMW result that would not have been possible [email protected] Group national dealership network. without such impressive efforts from all The awards underlined an ongoing our dealers and their professional staff,” Auto Media Group Limited makes every endeavour commitment to invest in the BMW Group says Pawah. to ensure information contained in this publication is brands and to deliver a superior customer Shepparton BMW won the 2019 BMW accurate, however we are not liable for any losses or issues resulting from its use. service amid challenging market rural dealer of the year award, the runner conditions. up being Townsville BMW. Annual subscription: $84 + gst ($96.60) Brighton BMW was awarded the BMW Coastline BMW won the 2019 BMW Alpine Printers. Printed by: Trophy dealer of the year award for 2019, provincial dealer of the year award, the which demonstrated success across runner up being Hornsby BMW. key areas of their business, including Waverley BMW won the 2019 BMW metro customer centricity, target achievement dealer of the year award, the runner up and business excellence. BMW Brighton being Canterbury BMW. autotalk.co.nz also scooped up the 2019 major dealer of Essendon MINI Garage, Brisbane MINI autotalk.com.au the year award, the runner up being BMW Garage and MINI Garage Sydney were transporttalk.co.nz Brisbane. all recognised for their passion during transporttalk.com.au BMW Group Australia chief executive a year that saw MINI celebrate its evtalk.co.nz officerVikram Pawah says that 2019 60th anniversary while also honouring was an incredibly busy year for the BMW their determination to achieve further evtalk.com.au and MINI brands with dealers investing success particularly in enhancing the wheeltalk.co.nz considerable sums in their facilities to customer experience. identicar.co.nz accommodate the number of new model 4 | AUTOTALK MARCH 2020 | www.autotalk.com.au NEWSTALK DEALERS PREPARING FOR COMPENSATION BATTLE WITH HOLDEN ustralian dealers are going on highly profitable domestically produced the offensive in preparation for a Commodore units in 2017/18. Abattle with General Motors (GM) “The compensation formula Holden regarding adequate compensation as the is using is applied consistently for all company terminates new Holden vehicle dealers and covers reasonable earning sales in the Australasian markets. expectations from the New Holden sales A group of unhappy dealers lead by the department over the remaining portion Australia Automotive Dealer Association of the Dealer Agreement. (AADA) met with prime minister Scott “All dealers also have the opportunity Morrison on February 26, telling him to continue as Holden Authorised that the Holden compensation offer was Service Outlets, maintaining their current “grossly inadequate”. service and repair client base. This is a One dealer told AutoTalk that a bone of consistently very profitable part of their Martin Ward contention was the belief that the New businesses. Zealand Holden dealers were getting a “The proposed compensation also better deal: “This is just the start, there is includes a provision to reimburse a lot more water to go under the bridge.” dealers for a portion of their unamortised The managing director and chief executive investments in their new car showroom, as officer of Australia’s largest dealership well as full reimbursement of unamortised groups says GM has a legal and moral investments in Holden dealer signage,” the obligation to ensure Holden dealers are Holden Australia spokesperson says. provided with adequate compensation packages. Class action avoidance AP Eagers boss Martin Ward says there are 943 dedicated GM employees who Holden dealers will be wise to recognise will be affected across his dealerships. He that General Motors has much experience said there is also GM stock, leases and in closing down operations, and they property that will all be directly affected, should pay heed that past litigation by James Voortman and GM need to take responsibility for this. disgruntled franchisees has not always He says although it is early days in relation been as fruitful as they wished. to the actual financial cost of the Holden There were 17 French Chevrolet dealers brand closure on the Australian economy who sued GM in a class action for 33 and more directly the impact on the million Euro in damages when the Holden car dealers, it is certain that the company announced at the end of 2013 cost will be significant. that the brand would be withdrawn from the market by the end of 2015. It’s a fair offer: Holden According to the Business-Standard, the French Chevrolet dealers claimed the But Holden Australia feels the dealers are withdrawal was brutal and disloyal as GM being treated fairly. and had not respected the required notice “Holden is doing the right thing by period. But GM was only forced to pay its dealers during this difficult time. out 8 million Euro plus court costs by the We believe the offer is fair,” a Holden French commerce tribunal. Australia spokesperson says. Dr Brett Dale “In most cases Holden dealers will receive Senate inquiry welcomed compensation to a factor of four times the average Holden new car profit/unit of On February 27, the Senate referred all dealerships over the 2017-2019 fiscal GM’s announcement on February 17, years. This number includes the sale of to withdraw the Holden brand and Continued on page 6 AUTOTALK MARCH 2020 | www.autotalk.com.au | 5 NEWSTALK Continued from page 5 operations from Australia to the Education give evidence at a hearing on behalf of our and Employment references committee AADA Queensland members,” he says for inquiry and report by the first sitting Representing more than 3000 day in May 2020.
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