THE VEHICLE DEALER’S NEWS SOURCE VOLUME 3 ISSUE 1 AUGUST 2016 CarsGuide, Dealer Solutions and Manheim to fall under Cox banner Three of the bigger names in the Australian automotive industry services space are set to merge under one umbrella operation.
nternational firm Cox Automotive “This exciting news is yet another has announced that it has formed sign of Cox Automotive’s commit- ICox Automotive Australia, which will ment to the local markets in Australia include its fully-owned Manheim busi- and New Zealand. As part of Cox ness, Dealer Solutions, which it took a Enterprises, a global firm with 55,000 stake in earlier this year, and CarsGuide. employees and revenues of more News Corp Australia confirmed than $18 billion (USD), we can actively this morning that it is selling its 50% support local clients with the re- stake in the CarsGuide vehicle listing sources of one of the world’s leading business to Cox. The rest is owned by automotive services company.” members of the automotive trade. “Cox Automotive has identified Cox and CarsGuide have signed Australia and New Zealand as growth agreements with a view to complet- markets and the confidence in our ing the transaction by the end of 2016, people, our performance and our after working through the necessary brands has enabled this significant regulatory and legal requirements. investment in the future growth of our Campbell Jones, chief executive of Sandy Schwartz group of companies.” president of Cox Automotive Manheim Australia and New Zealand “We can simplify the trusted ex- says the acquisition of Dealer Solutions change of vehicles and maximise value signalled the intended plan. Solutions and Manheim,” he ex- for the entire automotive industry “The acquisition of Dealer Solu- plains. “This will more closely align especially vehicle sellers, buyers, deal- tions earlier this year certainly our capabilities in Australia with Cox ers, manufacturers and fleet, leasing, signalled our intent to replicate the Automotive’s comprehensive range finance, insurance and rental com- breadth of products, services and of products and services, available to panies,” Schwartz explains. “We can solutions they already provide on the wholesale and retail sectors of continue to evolve the client experi- a global scale, within Australia and the automotive market.” ence with a wide variety of solutions New Zealand,” Jones says. to meet the exploding shift in mobile “Today is a watershed moment Each brand retaining its own identity usage, online buying, consumer access for the automotive industry, as we and focus. and customer expectations.” announce our plans to strategically Sandy Schwartz, president of Cox Au- Lauren Williams, chief executive of combine CarsGuide with Dealer tomotive, called the new venture exciting. CarsGuide, says the structure will ena- ble the wholesale and retail sides of the INSIDE trade to work more closely together. Dealer Profile: Max Kirwan Mazda 7 “As part of Cox Automotive Australia, Search Optics opens doors to digital leads & sales 8 we expect to be able to further facilitate Tipping point for mass EV uptake is here 23 the links between the wholesale and re- Vehicle sales climb in July 25 23 25 tail markets so our customers can take Continued on page 3 FOUNDATION SPONSORS
AutoTalk acknowledges the support of our foundation sponsors:
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Carsales profit up on positive global outlook
arsales.com has reported a net S. Korean and S. American markets able lead model profit after tax of $109 million, perform solidly from July 2016 up 6%, and a total operating carsales.com also notes that in- should be a good Greg Roebuck C CEO of carsales.com revenue of $344 million, up 10% com- ternational market growth has been contributor to pared to financial year (FY) 2015. The positive, with its Brazilian and South growth going forward. growth comes off the back of strong Korean investments delivering strong “Our acquisition of a controlling growth in its global markets. local currency revenue growth, along shareholding in Chileautos (www.chile- carsales.com chief executive and with the acquisition of 83% of Chileau- autos.cl), the top automotive classifieds managing director Greg Roebuck says tos in Chile and 65% of SoloAutos. website in Chile, is another milestone carsales’ strategy is delivering growth SK Encar delivered a 21% underly- in our international growth strategy. in FY16, with revenue up 10% and ing revenue growth year on year. This The Chileautos team has built a market EBITDA up 10%. growth was across all categories, in- leading and profitable business and we “We are building a dynamic global cluding dealer, private and display, with anticipate deploying carsales’ expertise, business; the economies of scale monthly dealer leads trebling. experience and Spanish language tech- that come with this, along with our “Integration of vehicle inspection nology into Chileautos and SoloAutos, world leading technology, are help- services via our Redbook Inspect our Mexican business, to rapidly grow ing us evolve our business. Dealers business and our (soon to be re- our Latin American businesses. and consumers have the same high leased) payment service via Promise- “Assuming no further deterioration expectations in all of our markets,” Pay are great examples of how we’re in market conditions, we anticipate the he says. making the buying, selling and pur- trialling of the lead model in Brazil to be carsales’ operational and strate- chasing of cars easier and safer. Along a good growth contributor to local cur- gic highlights during FY16 include with instant offer, products such as rency revenue and earnings over the full its domestic business continuing to our new car showroom (released in year. Korea is expected to see continued perform well with dealer revenue up June) will all contribute to growth in solid local currency revenue and earn- 10% year on year, while private seller the future,” Roebuck adds. ings growth. We expect ongoing integra- revenue performance is up 19% year “Investment in Brazil delivered solid tion of core carsales IP and technology on year. revenue growth with Webmotors’ into our Chilean and Mexican businesses Additionally, display revenue has underlying revenue up by 13% year on to provide a solid uplift in revenue and also seen growth, up 9% year on year. Operational improvements have earnings in the coming year.” year, and finance and related services delivered over 70% growth in lead vol- A more detailed trading update will showed strong growth with gross umes year on year and key growth in be provided at the October annual profit up 29% year on year. finance leads and the trial of a charge- general meeting. CARSGUIDE, DEALER SOLUTIONS AND MANHEIM TO FALL UNDER COX BANNER Continued from page 1 marketplace becomes ever more full advantage of the synergies offered influentia.” Williams says. by the new brand suite. The move will “Major changes within the auto- especially allow us to offer our dealer motive landscape are creating vast customers an even greater range of new opportunities and formidable channels in which to sell and buy their barriers to success that until a few vehicles.” years ago didn’t even exist. Cox “The addition of the CarsGuide Automotive Australia will exist to brand will fit perfectly within Cox empower each of our customers to Automotive Australia’s evolving family thrive in a rapidly changing auto- Campbell Jones of brands, particularly as the digital motive marketplace.” CEO of Manheim
AUTOTALK.COM.AU AUGUST 2016 | 3 NEWSTALK
Zagorski takes reigns of Ateco in Australia and NZ
Importer and distributor Ateco Automotive has a new boss who has revealed that commercial vehicles are a key part of the business model going forward, while also noting that electric vehicles for the masses is another area that interests him.
agorski was ap- OEMs gives us an While he acknowledges that com- pointed man- advantage in the sense mercial vehicles are not a sexy part Zaging director that we can react to of the business, he does point out of the Australasian market trends much that Ateco has had a lot of success Ateco Group in July. quicker than the larger with them. “It can be a very profitable Zagorski joined Ateco car brands.” business if you do your homework in 2010 to set up and One of his ob- and give the commercial buyers a run the Ateco subsid- jectives is to con- good value proposition. iary Branded Financial tinue leveraging that. “We were successful with Great Wall, Services, which is Roger Zagorski Longer term, the aim we brought in a ute and took it from operational in Austra- is to continue looking zero to circa 20,000 units - now there lia and New Zealand. for new opportunities whether as a are around 40,000 in the marketplace. The company proved a major niche brand or a Chinese product. “Also cars are being produced success for Ateco under Zagorski’s cheaper these days so the challenge leadership, with a portfolio valued Commercial and electric vehicles a is to find the best value proposition, in excess of $150 million and more key focus whether it’s commercial or passen- than 5000 customers across Aus- “The Levante will give us access to ger. LDV is definitely one brand that tralia and New Zealand. a broader prestige market. But then we would like to see go from a once He entered the car industry in 1996 at the other end of the spectrum niche brand into the volume end of as part of the startup team for Mer- a niche brand like LDV, which we the commercial vehicle market.” cedes-Benz Finance Australia. In 2004, brought in 12 months ago, is starting When asked where the biggest he moved to New Zealand to assume to hit its straps,” says Zagorski. “We challenges and opportunities are the role of managing director of Daim- have some new models coming into for the brand in Australia and New lerChrysler Financial Services and in the range which will give us access Zealand, Zagorski points out that 2007 he took on the responsibility for to broader parts of the commercial commercial vehicles and electric all aspects of the German company’s vehicle segment.” vehicles for working mums and dads New Zealand operation as the man- Continued on page 5 aging director and executive general manager of Mercedes-Benz New Zealand. AutoTalk spoke to Zagorski who says he is looking forward to seeing the company give the LDV commercial ve- hicle brand a bigger presence, as well as overseeing the launch of a couple of new Alfa Romeo models, including a SUV in New Zealand next year and the Maserati Levante SUV in Australia later this year. “The company is relatively small in terms of numbers, but we have very skilled people at the company who get the job done. The knowledge bank at the company is very strong as is the dealer relationship and the importance it plays in its success,” he says. “Being a smaller more nimble com- LDV G10 Van pany compared to some of the larger
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Continued from page 4 company is close to announcing a expanding ASV into Asia and South are two big areas that he wants to new appointment to its dealer network Africa. Again it’s a new business for us see developed. development team. and we are learning a lot of lessons “Tesla have been very successful at “We will be looking at making more as we go, but overall the reception marketing their product, but no one dealer appointments as we grow the from dealers and customers has been has been able to crack the volume existing brands, but the important thing great. There is also the possibility of end of the market when it comes to entertaining other makes and other electric vehicles. As an opportunity it is brands altogether,” Zagorski notes. massive so the challenge is to find the The re-engineered RAM models right proposition,” he told AutoTalk. have full volume Australian Design “The prestige end for EVs is double Rule compliance, with ASV the only because there is still a premium that importer of RAM Trucks covered by customers are prepared to pay for that approval. ASV dealers currently Teslas because they see them as offer the RAM 2500 and RAM 3500, somewhat of an exotic vehicle. But to both in top-spec Laramie dual-cab Ram 2500 bring the production cost to a level form. The RAM 2500 Laramie is priced where it’s a value proposition for the to recognise is a balanced approach; we at $139,500 plus on road costs, while volume end of the market, and the certainly don’t see a strategy where more the price for the 3500 is $146,500 notion of mum and dads buying EVs dealers means more sales,” he says. plus on road costs. and using them on a daily basis, is a Zagorski points out that there will “We also have a very strong dealer challenge that we would love to get be expansions in the dealer network network in New Zealand. The dynamic our heads around.” for LDV and American Special Vehi- in the Kiwi market in terms of dealer While Zagorski notes that Tesla will be cles (ASV) Ram dealers. The ASV new ownership concentration is slightly delivering a volume end model in 2017 at addition with the Ram trucks will higher, so we are happy to have a around US$30,000, he notes that China ramp up to 50-100 units per month robust and highly profitable multi- is powering ahead with EV technology in Australia. franchise dealer that represent us very and notes, “there are some manufac- ASV is a joint venture between well,” Zagorski adds. turers there that are highly focused on Ateco Automotive and Walkinshaw “In New Zealand, the Chrysler deal- battery power and EV technology, so I Automotive Group. ASV imports RAM erships have been performing very well think that part of the EV for the masses Trucks models in a left-hand drive despite the current trends in Australia. solution is going to come from China”. format direct from the factory, and “We are also looking forward to the the vehicles are then converted by arrival of the Alfa Romeo new mod- Aussie and NZ dealer network Walkinshaw’s expert technicians on a els in New Zealand, with the Giullia development production line in Clayton, Melbourne. and an SUV which comes out in 2017, Zagorski notes that while adding “Once the production processes which will be very good for business more dealerships is not a priority, the are bedded down we will look at in New Zealand,” he notes.
Maserati Levante
AUTOTALK.COM.AU AUGUST 2016 | 5 NEWSTALK
AutoTalk Magazine and Imminent imports autotalk.com.au are published by Auto Media Group. Phone: 1800 125 620 ABN: 37 51360 734 decision intensifies
JOURNALIST lobbying on both sides Max Pichon +61 403 932 864 [email protected] he Australian Imported “We believe the Aussie “This reform is in line Motor Vehicle Industry consumer needs a better go, with improving com- MANAGING EDITOR TAssn. says it is stepping and more choice and more petition and consumer Richard Edwards up its government lobbying affordable cars. They should choice,” says AAAA execu- +64 21 556 655 efforts and meeting with a be able to engage the car tive director, Stuart Charity. [email protected] newly elected cabinet, as market outside the current “We recognise the logic of it seeks to revamp its talks restrictive dealership ar- minister for major projects, PUBLISHER around parallel imports. rangements,” says Sandher. Paul Fletcher, in initially limit- Vern Whitehead Meanwhile, other key Sandher also notes that ing personal imports to right- +64 21 831 153 groups – the Australian AIMVIA’s membership drive hand-driving nations of Japan [email protected] Automotive Dealer Associa- has been better than ex- and the UK. The government tion (AADA) and the Federal pected so far for 2016. “I can has recognised these markets Chamber of Automotive say that we have had a large as having similar safety stand-
SALES MANAGER Industries (FCAI) – have also number of members jump on ards to Australia.” Dale Stevenson ramped up talks with key board these past six months.” Charity also believes the [email protected] political groups, with the aim AIMVIA says it remains reforms will allow thousands of having the policy axed. confident that the legisla- of Australian vehicle en- The Labor Party and tion will go through de- thusiasts to import unique OPERATIONS MANAGER senator Nick Xenophon spite Australian peak dealer vehicles into the Australian have both expressed sym- group, the AADA, actively market. “This will generate Deborah Baxter pathy with the AADA and lobbying Coalition MPs and new avenues of business for [email protected] FCAI’s concerns, and there senators during the elec- the Australian auto aftermar- are rumours the policy tion campaign to get them ket, as consumers service Auto Media Group Limited makes every endeavour to ensure could face defeat in the to withdraw support for car and customise their new information contained in this Senate even if it is endorsed imports policy, as it “would imports,” adds Charity. publication is accurate, however by the Coalition. cost jobs and investment”. we are not liable for any losses Australian Imported The policy would allow AADA, FCAI: ‘Parallel or issues resulting from its use. Motor Vehicle Importers As- people to buy cars built in imports rule will hit jobs sociation (AIMVIA) president right-hand-drive markets, like and growth for dealers’ Jack Sandher told AutoTalk: the UK and Japan, less than During the Australian “We will be seeking to brief a year old and with less than election, the Australian Au- government and the relevant 500km on the odometer. tomotive Dealer Association departments on the impact The Australian Automo- (AADA) and the FCAI joined of the Motor Vehicles Stand- tive Aftermarket Associa- forces to fight the changes, ards Act (MVSA) changes on tion (AAAA) has backed the mobilising their network of our sector, and encourage decision to allow individuals several thousand dealer- the Turnbull government to or businesses to import new ships across the country. embrace further reform of vehicles themselves. Continued on page 12 the MVSA sector.” autotalk.co.nz Among the key priorities dieseltalk.co.nz going forward is to con- tinue with existing reforms autotalk.com.au and take them further, evtalk.co.nz and encourage govern- carandsuv.co.nz CAR & SUV ment to accept and apply Productivity Commission identicar.co.nz and Harper Review report recommendations.
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Dealer profile: Max Kirwan Mazda
Max Kirwan Mazda, located in Preston, Melbourne, has been operating since 1946. The dealership has 70 staff spread over an area of 8000sqm, with an additional holding yard where 400 new cars are stored.
015 proved tomer and not you, those sites as they have two 3. Can you describe your to be a big so it’s their customer sites, two service depart- day-to-day management 2year for the and you are just ments and double the staff, style and how it helps dealership as not delivering cars. whereas we comprise one achieve sales targets as only was it once We find that by single site. well as increased staff again Victoria’s not doing any fleet The biggest dealer in US, productivity and enhanced bestselling dealer business we get Wayne Mazda, sold around customer experience? for the year, after Max Kirwan more repeat cus- 2400 new Mazdas in 2015 We have a very strong Dealer Principal recording a new tomers, and they compared to us at 3165. management team plan- state and national also refer friends Australia is also classified as ning culture. We run three single site sale record of and family to us. We have a best practice country, ac- business plans concur- 3165 sales, but it also cre- people coming into the companied by the most sig- rently, namely a 12-month ated a new record of used dealership who have been nificant market share and the business plan, a three-year vehicle sales. This saw the buying cars from us for six best customer satisfaction strategic plan, and a five- dealership achieve almost or seven generations. ratings of any other country. Continued on page 16 4000 vehicle sales in total The other issue is that if for the year. you deal with fleet com- panies, they might have a 1. What are your new and customer that lives quite used car sales for the first far away so you’ll never see half of 2016? them come into your deal- For July year to date we ership. Dealing with your sold 1958 new units and 351 local customers in your VEHICLE SHIPPING used cars. Our objective for prime market area means 2016’s calendar year is 3500 they return to the service new car sales - for which we department and you have are on track – and 700 used regular contact with them. car sales. We have a new This means you have an facelift model Mazda3, which opportunity to support has just gone on sale, so July them not just with car sales stocks of Mazda3 were quite but also with car servicing, JAPAN TO AUSTRALIA depleted, which reduced our which leads to relationship sales result for the month. strengthening and simul- FASTEST IN THE BUSINESS taneous building of the 2. What does your service department. New port call to Fremantle dealership do differently Globally, we are ranked Direct service to Brisbane, Sydney and Melbourne to other dealers that top 10 for Mazda sales, Four vessel sailings per month makes it such a successful along with another two dealership in terms of sales Aussie dealers in Australia Agent bookings: GRAEME JENKINS // PHONE: +61 2 9700 0100 and customer satisfaction? which are also in the top We don’t do any fleet 10 global sales dealers. BEN SIMPSON // PHONE: + 61 2 8103 4075 business. We are of the view One is West End Mazda [email protected] // dolphinshipping.com.au that the dealership needs to in Sydney with two sites, build relationships with cus- and the other is Grand tomers itself. If you deal with Prix Mazda in Queensland, a fleet company, it is building also with two sites. But the the relationship with the cus- overall volume is higher at
AUTOTALK.COM.AU AUGUST 2016 | 7 NEWSTALK
Search Optics arrives to open doors to digital leads and sales
earch Optics, a from Manchester Busi- “Australia is a key growth op- global digital mar- ness School. portunity for our rapidly expanding Sketing provider During a career that global brand,” says Wright. “Our with expertise in the au- spans more than 16 international focus, combined with tomotive industry, has years, he has created local talent, ensures we can deliver appointed Tom Wright and delivered digital highly tailored solutions to clients in as managing director of transformation strate- each of our key markets. Search Optics Australia gies in senior leader- “From my early observations in Aus- and APAC (Asia Pacific), ship roles throughout tralia, as seen in other markets around Thomas Wright as part of its global EMEA (Europe, Middle the world, OEMs, dealer groups and expansion strategy. East and Africa) and owner/operator dealerships can imple- The appointment of Wright aligns APAC, including Auto Trader, News ment digital strategies that are far more with the company’s growth strategy and International, Trinity Mirror, Thought- effective. For example, a mobile first strong focus on the automotive industry. works and Sopra Steria. approach will generate better leads and He will work closely with Austral- With sales, consulting, business drive more sales,” he notes. ian-based OEMs, local dealer groups development and marketing experi- AutoTalk spoke to Wright about his and independent dealers to deliver ence, Wright has provided solutions plans for Australia and he explains: digital marketing strategies and prod- to key car brands such as; Audi, BMW, “In the short term we aim to establish ucts that will help generate higher Ford, Jaguar, Land Rover, Mercedes, the business and gain a foothold into quality leads and improve their sales. Nissan, Rolls Royce and Volkswagen. the Australian automotive market. We Wright will add value to the company He also has a deep understanding of would like to gain some influential as a result of his extensive knowledge in the car dealership network, having sold clients, which we are already in the digital advertising and digital technol- directly and indirectly to it for more process of talking to, and also aim to ogy platforms. He holds a Global MBA than a decade. Continued on page 9
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Continued from page 8 Dealers can’t change what is coming “These days OEMs are actively have a good portfolio of case refer- According to Wright, the one key looking to engage their customers ences by the end of the year. difference in Australia is that a lot of in the digital space. It is at the point “Long term, we want to be working dealer groups own multiple brands. where OEMs are trying to engage with quite a few Australian-based OEMs “You have many people compet- with prospective buyers as much as in two to three years’ time by helping ing, but brand guidelines are the same possible before they even visit the them with their digital transformation. around the globe. The OEMs have dealership. A huge 78-80% of people Five years down the road our aim is to started to trigger a lot of the stand- in Australia are using search engines build Australia up to a platform where it ardisation, which hasn’t really af- to look for a car on their mobile de- becomes the heart of the APAC region fected Australia before. It is a changing vice, he says. in terms of growth.” market that is inevitable for all dealer “The current generation’s percep- According to Wright, the Australian groups,” he says. tions of car purchasing has radi- digital marketplace for dealers is very “At the end of the day it comes down cally changed so now it’s not about fragmented. “You have a lot of dealers to how we can help dealers stand out whether you should tailor your digital and OEMs that are carrying out cutting and be different within the guidelines presence to get the mzzzillennials on edge work in technology development that are being set by the OEMs.” board but rather about how quickly and advertising avenues that other Search Optics’ business model you can tailor that digital presence areas in the globe have not mastered, works across all dealers from OEMs to and capture their attention.” but in other areas Australia is a couple local dealerships. With more than 1300 Google- of years behind the rest,” he says. One of the company’s standouts is certifications - the most in the “If you look at programmatic ad- that it enables group sites and dealer industry - Search Optics won the vertising, there are certain OEMs and sites to have their inventory listed Google Premier SMB Partner Mobile dealers that are doing a great job, but with the site, effectively enabling Champion Award in North America in then within the same marketplace dealers to have their own search 2015, proving its extensive expertise there are people who have static facility. “We allow dealers to have full and capability for providing tangible websites and are still spending money search and availability of their own results through practical tactics that in the traditional areas of print and stock on their site,” Wright notes. bring in fresh sales leads. radio and have not yet mastered the “The second basics. So it becomes very difficult to key advan- give a one size fits all solution to such tage is that we CONVERT MORE SHOPPERS a fragmented market. have a fully “Australia is currently the fastest responsive site INTO BUYERS adopter of mobile technology going that enables forward as a whole, not only automo- dealers to have ‘The brief we gave Andrew was to turn our team tive. But the problem is that rather a consistent from “good to great” and he has delivered. The than fixing the fundamentals, people user experience two months following the training saw the team are focusing on providing some of the across mobile, break several records, there is no doubt that new, shiny items at the top rather than tablet, desk- Andrew’s processes and system had a large part focusing on some of the core areas. top or browser “What we want to focus on is fixing within a smart to play in this.’ issues at the platform level, the stra- TV. It removes We will continue to use Andrew’s services to tegic level that is, to try to see what the technol- keep our sales team on track and ensure they we can sort out at the basic level. At ogy cost and have the tools to maximise every opportunity. the moment a lot of money is being enables them wasted by OEMs because they are not to have a flex- Full testimonial at: http://www.andrewmearns.com. getting their core concepts right.” ible site. We au/references.html Wright says that as a result of the also enable Jeremy Spicer experiences he has had with OEMs and direct analysis Dealer Principal overseas dealers, he feels confident of a dealer’s Manukau Nissan that he has the potential to push those website, cre- success stories into the Aussie market. ate pages and “I am hoping to share the wins and adapt user successes we have had in the past experiences and bring in that global outlook from through the site markets such as the US, India, China, so as to focus etc. We think we can help dealers and on key targets T: 0488 800 210 & 1300 480 661 car makers by fast tracking those digi- and produce E: [email protected] tal processes as well as extending our the best return www.andrewmearns.com relationships with OEMs.” on investment.
AUTOTALK.COM.AU AUGUST 2016 | 9 NEWSTALK
Navigating the aftersales revenue stream maze: Part 2
Service and retail sales environments Make it achievable ’ve chosen to bundle these two So you’ve got a great prize and the together as the challenges, engage- By Andrew Selim incentive structure is clear but the Iment mechanisms and environ- FieldForce target is out of reach or the chances of mental characteristics are similar. [email protected] winning are miniscule. This is a no no. Again, for context: They want a result as much as you Service environments – this is the do. So try incentives with language cross-selling (‘We noticed you require such as ‘reach X and you get Y’ new tyres, we can fit them for you rather than returning to the dealership. rather than ‘reach X and you have a today’) and upselling (‘Would you like In both examples, customers are chance to win Y’. to upgrade to premium oil?’) by service spending money, just not where we advisors during time of vehicle service. want them to spend it. In a market Communication & engagement: Retail sales – this is the selling of where vehicle sales margins are pain- So you’ve ticked off all the above accessories by vehicle sales staff in fully thin, these lost revenue opportu- – fantastic! But nobody knows about retail showrooms. nities must be curbed. it, or they have lost interest along the The challenges are broadly simi- So how do we win here? We need way. It’s all about communication, lar, that is gaining mindshare of the to motivate and change the behav- and as simple as it sounds, many still key people to influence these sales. iour of our prime influencers at the fail to get it right. Where it can come Service advisors are generally focused point of sale. unstuck is through over complication on getting cars in and out each day, Now, I won’t go into the basics - or trying to be too creative – time- which sees very busy mornings and things like online and offline marketing lines go out the window. afternoons with in between time usually collateral, sales and product training… So devise a clear communication spent communicating with owners on I say they are basic because if they and content roadmap and stick to it! unexpected issues etc. Indeed, the only are not being done the question is time they can sell is face to face when begged as to what is being done? Execution platforms: there can be a long line of impatient What works time and time again Execution needs to be easy, cost- owners wishing to drop off or pick up. and far and wide to influence behav- efficient and reusable. Gone are the It’s a highly stressful environment. ioural change - incentives. days of having to develop your own For the latter, their focus is to sell digital platform to facilitate and man- cars. It’s about getting the signature Ensuring incentive success age your incentives. Your time and and not complicating or distract- So you’ve decided to do an incen- money is better spent elsewhere, so ing the process of achieving it. Don’t tive – great! Here is where many fail: seek out third party providers like get me wrong, I know I’m painting a FieldForce who can plug and play broad brush, but it is characteristic, The Prize exactly what you need. especially in high volume brands/ Have you ever seen a kid excited to models over prestige/niche ones. So eat vegetables? Give them candy how- Summary what generally happens when these ever…you know where I am going here. For parts-revenue focused managers sales opportunities are missed? You must ensure that what you are of- at dealer and OEM level, the oppor- Let’s use the examples above - let’s fering as a reward will get them excited! tunities are plenty. Several strategies say in the case we don’t ask to re- must be evaluated and a clear strat- place the worn tyres? The owner will Keep it simple egy devised for each channel through most likely go to an independent tyre Sell X of this and Y of that, but which all can capitalise. The concepts retailer which may also offer servicing. only if the sun is shining and you are presented above are by no means revo- So not only have we lost the tyre sale, standing on one leg. I’m being face- lutionary nor my own creation, they we may lose the customer entirely. tious yes, but there is some truth in it. have however proven to be powerful In the case of accessories, custom- Some incentives are so riddled with strategies in boosting parts revenue ers more often than not shop after- terms and conditions they land in the when employed and executed well. market in physical stores and online ‘too hard’ basket. Happy selling!
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Customers at the heart of Hino sales and service focus
Hino conducted a survey to find out what is important to its customers. Consistency in pricing when visiting the dealership or service centre came out on top.
BY MAX PICHON 500 and 700 series medium and heavy duty trucks in July. s a result, Hino has introduced “The truck market for the medium- fixed price minor servicing and duty truck is our largest, so we expect Aslashed the price of service and to see the same percentage but more in maintenance parts. On average, ser- terms of volume coming in,” says Bleasel. Hino service vice and maintenance parts have been “With the light-duty truck we have reduced by 24%. a leading product in terms of technol- us to look at the training programmes Fixed price minor servicing extends ogy and specification, and we think we we provide to our dealers.” to all Euro 5-compliant Hino 300, 500 will continue to see good sales in that Bleasel explains that customer and 700 series vehicles. section. In general, I have a positive requirements are always changing, Pricing for minor servicing now be- outlook on the sales market. Things contingent also on whether they are a gins at $559 for the 300 series (N04C), will continue on the same path as they fleet or retail customer. $669 for the 500 series (J07E) and $869 have been so we won’t see any huge “In order to get more insight into our for the 700 series (E13 – FS, SS, SH). boom or bust environment. customers we have been building this Fixed priced minor servicing includes “We are getting repeat customers customer care team over the last year. vehicle inspection and diagnostic checks, and some customers who come in for This has enabled us to monitor many engine oil and filter replacement, fuel a brake repair, for example, but take up things such as incoming calls, the num- filter replacement, and vehicle greas- the offer while their vehicle is being ser- ber of dropouts, and any complaints ing and tyre rotation by a professional viced. We recently opened a customer etc. We also survey the customers from factory-trained Hino service technician. care centre in-house where seven staff a sales and service perspective,” Bleasel Hino Australia head of product of- members send customers surveys to told AutoTalk. fering Greg Bleasel spoke to AutoTalk get feedback on their experiences, as Hino is also conducting some mar- on Hino’s strategy to get the best from well as feedback on the servicing of ket representation studies to determine its dealers for enhanced customer their vehicles. That feedback is helping Continued on page 12 satisfaction. “Customers are looking for the best price and consistency across our dealer network,” he says. “As they may have multiple vehicles and may take different vehicles to different dealers for servicing, they don’t want unexpected surprises. Hino Australia is therefore working closely with its authorised dealers to achieve this outcome. “From the dealer’s perspective it means better retention because the pricing is more competitive to that which non-Hino dealers are offer- ing. So, when a customer makes a choice, hopefully they will see the value of taking it to a Hino dealer. As a result we have seen a 10% increase in the number of vehicles that have come back for servicing.” Hino offered the cheaper pric- ing on the light duty 300 series truck 12 months ago and on the
AUTOTALK.COM.AU AUGUST 2016 | 11 NEWSTALK
CUSTOMERS AT THE HEART OF HINO SALES AND SERVICE FOCUS Continued from page 11 Hino modules transport, its weight and bulk, and how where more Hino dealers will be need- improve customer far and how often it will be transported. ed in five, 10, 15 and 20 years’ time. The satisfaction at dealer “Our training process therefore fo- modelling will focus on major transport Hino Australia cuses not just on our products but also routes, population growth areas, freight has also strength- on building the needs analysis skills of terminal locations and business growth ened its customer our sales staff, which enables them to corridors to decide where Hino may focus by creating find the right transport solutions that need more full service facilities. a comprehensive are fit for purpose and best suited to “We are currently doing this mod- Greg Bleasel sales training pro- each individual business’ unique needs. Hino elling for Adelaide, Brisbane, Sydney gramme aimed at and some other areas. We are look- enabling Hino deal- ing at where we need new additional ership sales staff to provide the best dealerships - but developing a dealer possible customer experience. network is not something that can be The five-stage programme is done overnight as it usually takes two delivered via a combination of online to three years,” says Bleasel. learning modules and face-to-face In terms of truck market challenges, training conducted at Hino Australia’s Bleasel points out that the whole head office in Sydney. lifecycle cost of fleets is always a key Hino Australia chairman and chief Hino 300 hybrid truck challenge. “We are always trying to executive Steve Lotter says the training make the whole lifecycle cost more programme is aimed directly at provid- “Our dealerships are right behind effective for the customer by reduc- ing the best outcome for its customers. the programme and the feedback from ing customer downtime and improving “It’s all about ensuring our dealership our sales staff has been very positive.” proximity through positioning our parts sales managers and consultants have The sales training programme forms and service agents and dealers to areas the knowledge and skills needed to en- part of a broader Hino academy cur- where our customers live and work. sure they are not just selling a truck but rently being developed collaboratively “The challenge this year in particular are instead providing a total transport by the sales, parts and service divisions has been the exchange rate with the solution to each customer,” Lotter says. of the company. strong Japanese yen. It has put cost “The sales process for trucks is quite The five-stage sales programme sees pressures on us which we have not different to passenger vehicles: the staff begin at the induction level before passed on to customers to maintain sales consultant needs to take into progressing to consultant, professional, cost stability.” account what the customer needs to expert, and then master level. Imminent imports decision intensifies lobbying on both sides Continued from page 6 impact on “jobs and growth”. dependent on vehicle sales, includ- “The two bodies recognised “We think our letter brought to ing our significant investment in this issue as poorly researched government attention the negative training and facilities,” the letter says. – and underpinned by no eco- consumer consequences likely to The letter also makes clear that nomic modelling – on the impact flow from this plan, and also ex- the success of the dealership allows it would have on Australian dealers pressed our concerns about future the business to make an investment … and not evidentially supported risks,” he says. in local communities as a “significant to deliver on its claimed benefit to The letter, distributed to dealers economic and social contributor to consumers,” FCAI chief executive to lobby MPs and senators, says the region”. Tony Weber told The Australian. the dealer network has “significant “If the Australian government al- AADA chief executive David Black- concerns” about the proposed lows these cars to enter the coun- hall says the campaign got traction policy changes and urges the gov- try through informal channels. we in regional areas, where the policy ernment reconsider. expect much of the burden will fall would have a particularly negative “The viability of our business is upon dealers.”
12 | AUTOTALK.COM.AU | AUGUST 2016 DIARYTALK
300 repairs per month, which Melbourne-based The THE represents a 40% increase In Motion Group has been AutoTalk’s senior over the previous facility. appointed by Alpina as journalist Max Martin Roller, managing the national importer and Pichon looks back at DIARY director of LMM Holdings distributor for BMW Alpina the major stories in including Brisbane BMW, Bris- cars, which will initially be the past month on Max Pichon Max our Austrailian bane MINI Garage, Westside available through the group’s AutoTalk website BMW, Ferrari Brisbane and Doncaster and Bundoora – autotalk.com.au the Brisbane BMW Bodyshop locations, trading as Alpina says: “The design, develop- Automobiles – Victoria. ment and implementation The In Motion Group plans of this project has been 12 to make Alpina cars available months in the making.” through further dealerships in 1 July 5 July selected major metropolitan New boss for areas. These will be an- Mitsubishi to recall ‘Cost of Euro Crichton’s Ateco nounced later in 2016. almost every model 6 standards Ateco boss Ric Hull has retired Mitsubishi Motors Australia to cost $495M’ as managing director of Neville will be recalling almost every The Federal Chamber of Crichton’s Australasian Ateco 8 July one of its models sold in the Automotive Industries (FCAI) Group – with his replacement past 10 years after a number has reaffirmed its support appointed from within. New Honda NSX on of key models were recalled for a mandated CO2 target Roger Zagorski, who cur- sale at dealers late due to safety concerns. that is relevant to Australia. rently runs Ateco’s finance op- The models include some eration, is the new appointee. 2016 However, the FCAI notes that Honda Australia will sell the of the car maker’s most Hull will continue as a direc- the rise from Euro 5 to Euro 6 new Honda NSX at five deal- popular models, including tor of the automotive importer. standards would incur a rise erships around the country, the Triton, Lancer, Pajero, in new light vehicle costs of with a pre-production model Colt and the Lancer Evolu- almost half a billion dollars. arriving in Australia ahead of a tion and Ralliart. The Australian Labor Party 7 July national roadshow. The huge recall – close in April this year revealed The pre-production Hon- to 500,000 vehicles – was plans to introduce mandatory Looking forward to da NSX will begin a national released earlier this week in light vehicle standards, which looking back tour of the five dealerships nine separate alerts released it says will save drivers $8500 Japan has become one of that have been nominated by the Australian Competition in fuel costs over the life of the first countries to al- to sell it. These are: Yarra and Consumer Commission. car but add $1500 to the low automakers to sell cars Honda; Scotts Honda; Aus- price of a new car in 2025. equipped with cameras in lieu tral Honda; Nordic Honda; Meanwhile, the current of conventional mirrors. and Burswood Honda. 4 July Liberal National Government The technology isn’t Honda Australia direc- says it is working on a detailed quite new; we’ve seen it on tor, Stephen Collins, says the Top safety rating plan to meet climate change numerous concept cars over NSX will be a halo car for the for Mazda’s targets. The outcomes of this the past few years, includ- brand, but it’s the Honda Civic people mover review will input into a de- ing the Lamborghini Urus. In Type R that will be the most tailed plan to reduce vehicle The new Mazda CX-9 has fact, Cadillac offers its CT6 budget-friendly Honda hot emissions, and help consum- now been awarded the high- flagship with a digital rear- shoe when it arrives. ers lower the costs of running est ANCAP safety rating with view mirror that displays their vehicles. an overall score of 35.87 obstacle-free footage of Subaru opens points out of 37, to give it a what’s behind the car at the dealership in maximum 5 stars. simple push of a button. 6 July However, no one has been Essendon precinct The seven-seat SUV Subaru has opened its sixth – which goes on sale in able to completely replace BMW’s new Brisbane door mirrors with cameras on dealership in Melbourne, Australia this week and New with the opening of Subaru Zealand in September – is Bodyshop bigger a production model because sole reliance on the technol- Essendon. The dealership is the first generation of CX-9 and better located in Essendon Fields’ to be awarded an ANCAP ogy is still illegal in most parts The Brisbane BMW Bodyshop, of the world. Auto Centro precinct at Wir- safety rating. Previous CX-9 having outgrown its original raway Road. models were unrated. site at Victoria Street, Wind- Alpina brand arrives Operated by Subaru “This is the first time sor, has moved to a new facil- Melbourne, the company we’ve subjected the CX-9 ity at Nudgee Road, Hendra. in Australia relocated its existing service BMW Australia confirmed the to the ANCAP crash test The new site houses 4500 centre facility to the new site introduction of the Alpina process,” says ANCAP chief, qm and has been designed to broaden its offering to brand into the Australian James Goodwin. to optimise the vast space include new and used sales, market through The In Mo- offered by the building. This service and parts. tion Group, trading as Alpina will enable it to handle 250 to Automobiles – Australia. Continued on page 14
AUTOTALK.COM.AU AUGUST 2016 | 13 DIARYTALK
Continued from page 13 grants for 14,000 full-time land. As its name suggests, the On the opening of the jobs across South Australia. company provides financial 15 July new dealership, David Rodda, Motor Trade Association services under names of the dealer principal at Subaru Mel- of South Australia (MTA SA) brands handled by the dealers Fiji LTA appoints bourne says: “We’re excited chief, Paul Unerkov, believes with which it works. JEVIC to open a fresh and inviting the 2016/17 state budget will 1800Approved is The Republic of Fiji’s Land space that makes the brand boost confidence in South Transport Authority (LTA) has more accessible to those in Australia’s economy and finance broker of year appointed Japan Export Vehi- the Northwest of Melbourne. encourage jobs growth. The ongoing growth and high cle Inspection Centre (JEVIC) The Essendon Fields dealer- service standards of 1800Ap- for the mandatory inspection ship represents the latest in a proved has been recognised of used vehicles from Japan. wave of major investments in 12 July by the industry and the public, The inspection will en- Melbourne for Subaru.” with the company awarded compass the vehicle’s condi- Manheim commits ‘Asset Finance Broker of the tion as well as structural, VW Australia told to Sydney future Year’ at the 2016 Australian odometer, stolen vehicle and to come up with Manheim Auctions has broking awards in Sydney. biosecurity aspects. answers completed the purchase of The Australian broking A pre-export appraisal awards are unique in focus- Volkswagen has again been the land and buildings at 144 report from JEVIC will be ing solely on the leading subjected to Federal Court Moorebank Ave, Moorebank, required for inspected ve- brokers, brokerages and orders to produce more in order to cater for increased hicles from August 15 while aggregation groups, and is answers on the global diesel business demand. inspections will commence recognised as the most pres- emissions scandal that has With a growing number in Japan today. tigious awards within the impacted around 100,000 of vehicles, trucks, machin- industry. This achievement Australian motorists involved ery and other assets being represents a new pinnacle in the Maurice Blackburn auctioned to increasingly 19 July of success for the company, consumer class action. larger crowds every week, all of its members, and its Further orders, to be made the company has moved Navman Wireless and founder, Rodney Michail. by Justice Foster following to secure its future at the Asset Finance Broker of Teletrac announce the July 8 hearing in Sydney, Moorebank site. the Year award recognises the unified brand follow a pattern of behaviour Campbell Jones, chief ex- broker and brokerage that is Navman Wireless is rebrand- from the company that was ecutive of Manheim says: “The best servicing its clients’ asset ing under the name Teletrac recently labelled by the judge purchase of the 35,000sqm finance needs, while maintain- Navman. for treating Australia like a site at Moorebank reflects ing the highest standards in This rebranding follows “backwater” in its approach the success of our business submission quality and cus- Navman Wireless’ merger with to resolving the issue. and our commitment to our tomer service, as well as every GPS fleet tracking software Justice Foster is due to operations in Sydney.” area of the business process. company, Teletrac, creating issue the orders today, de- one of the world’s largest manding Volkswagen provide telematics organisations. more detail on how “mode 1” 13 July Under the Teletrac Nav- and “mode 2” emissions soft- 14 July man brand, the combined ware controls worked, and the Benucci appointed 93% coverage for resources of Navman Wireless recall work to be undertaken. CEO of Branded ANCAP and Teletrac will continue to expand the company’s offer- Financial Services Australasian New Car Assess- Umberto Benucci has been ings to a more geographically ment Programme testing now 11 July appointed as chief executive diverse market, including New covers 93% of the market – officer of Branded Financial Zealand, Australia, Mexico, with the awarding of five-star Budget lifeline Services, the company that the United Kingdom and the safety ratings to both the handed to SA auto provides retail and dealer fi- United States. Suzuki Vitara and Kia Optima. nancial services for the Ateco firms Both models previously group of companies in both The South Australia govern- ranked as top-selling unrated Australia and New Zealand. ment will provide grants to models in their class. 20 July Benucci’s move follows small and medium enterprises “We’ve awarded the the appointment of Roger for each new job created in maximum five-star ANCAP AP Eagers Zagorski, the previous CEO the next two years as a way to safety rating for the Suzuki expecting record of Branded Financial Servic- invest in job creation initiatives Vitara, which is a real boost es, to the role of managing half yearly profit for South Australia and give for consumers and Suzuki,” director of the Ateco group The share price of AP Eagers the automotive sector in SA a says ANCAP chief execu- of companies. has increased after the auto- much needed helping hand. tive officer James Goodwin. Branded Financial Ser- motive dealership company The 2016-17 South Aus- “The Vitara performed well vices has a portfolio valued in released a positive half-year tralian budget, which was in physical crash testing and excess of $150 million, with update to the market. handed down by treasurer includes reversing collision more than 5000 customers The update reveals that Tom Koutsantonis, estimates avoidance and a manual across Australia and New Zea- AP Eagers is expecting a the schemes will provide speed limiter as standard.” Continued on page 15
14 | AUTOTALK.COM.AU | AUGUST 2016 DIARYTALK
Continued from page 14 Man charged text for over 15,000 auto a valuable addition to the record profit result for the half over fraudulent dealers worldwide. company’s presence in the year ended June 30 2016. It Using the mobile messaging Melbourne region. expects a 14% increase in net compliance of platform, dealers are able to The existing Marwen profit before tax, of approxi- imports add chat and text to their web- Drive dealership would be mately $67.8 million, com- A man has been charged sites, mobile sites, advertising re-branded Daimler Trucks pared to $59.5 million for the following an extensive in- listings, social media and more. Laverton, and relocated over corresponding period in 2015. vestigation into the alleged “There are many vendors the next 12 months to a new This record result comes fraudulent compliance of 73 who sell chat, but Contact facility to be developed on a after AP Eagers’ aggressive imported vehicles in Sydney. At Once! is the only auto- greenfield site on Boundary dealership acquisition strat- Detectives from the State motive mobile messaging Road by the group’s prop- egy. In June the company Crime Command’s Property platform that can create a erty partner Charter Hall. announced it had acquired Crime Squad established network of consistent con- the Tony Ireland Group, a Strike Force Chorley to in- nections among dealers, More Aussies Townsville-based car and vestigate the irregular com- manufacturers and online looking to buy a car trucking retail business selling pliance of a large number of advertising sites such as in 2016 Holden, HSV, Land Rover, Autotrader and Cars.com,” new and used vehicles from The number of Australians Jaguar and Isuzu trucks, and says Adam Flegge, Contact Japan to Australia between who intend to buy a new car Hyundai forklifts brands. At Once! Australia sales 2010 and 2014. within the next four years manager. “Wherever and In August 2014, strike has been steadily climbing whenever consumers are force investigators executed over the past six months, shopping for vehicles, deal- 21 July a search warrant at a motor with a total of 100,000 more ers and manufacturers can dealership on Bridge Street, car buyers now than at the have immediate presence.” Autosports Group Rydalmere, where they end of 2015. banks on European seized documents relating Near-term intention has car sales to vehicle compliance. 27 July also risen, adding 60,000 The increased demand from more Australians on the Australians buying European Peugeot Australia lookout for a new car in the cars has underscored car 22 July next 12 months compared names new national with six months ago. dealership owner Autosports Diesel powered Group’s pitch to fund manag- sales manager ers this week, as the company vehicles growing in Peugeot Australia has ap- ramps up plans for an initial popularity pointed Nigel Wright to the 28 July public offering (IPO). The number of diesel powered position of national sales man- Imminent Autosports Group met with vehicles registered in Australia ager, effective immediately. imports decision prospective institutional in- has increased by more than Joining Peugeot Australia vestors in Melbourne, Sydney double that of petrol powered in 2013, Wright previously intensifies lobbying and Auckland and then Hong vehicles in 2016, according to held the positions of regional on both sides Kong. Autosports is looking to new figures by the Australian manager for sales, national The Australian Imported raise anywhere betwen $100 Bureau of Statistics (ABS). corporate sales manager Motor Vehicle Industry Assn. million to $400 million. Diesel powered vehicles and, since January 2016, act- says it is stepping up its The car dealer has been increased by 1.2% to 20.9% ing national sales manager. government lobbying efforts working with financial adviser and remain the fastest grow- He was instrumental in es- and meeting with a newly Luminis Partners on the listing ing fuel type for all vehicles. tablishing Peugeot Australia’s elected cabinet, as it seeks plans and is targeting a stock- The annual snapshot of corporate programme in to revamp its talks around market debut later this year. all vehicles registered for 2014 and securing Wool- parallel imports. use on Australian roads worths Australia, Nutrimetics Meanwhile, other key Full range of Teslas shows that the total num- and Right2Drive as Peugeot’s groups – the Australian in development ber of vehicles fueled by founding fleet partners. Automotive Dealer Associa- Tesla founder Elon Musk has diesel increased by 293,217, tion (AADA) and the Federal today issues his second master in comparison to 114,337 AHG adds Daimler Chamber of Automotive plan for the company – an- petrol powered vehicles trucks dealer to Industries (FCAI) – have also nouncing plans to take on even added to the Motor Vehicle portfolio ramped up talks with key more automotive sectors. Register since 2015. Automotive Holdings Group political groups, with the aim While the company had (AHG), Australia’s largest vehi- of having the policy axed. started off focussing on niche cle dealer group, has acquired The Labor Party and sena- parts of the automotive mar- 26 July a Mercedes Benz commer- tor Nick Xenophon have both ket, it was time to become a cial dealership in Laverton, expressed sympathy with the broader brand – with vehicles Software connects Victoria from Mercedes Benz AADA and FCAI’s concerns, in more segments. mobile shoppers Australia Pacific. and there are rumours the That will include a com- policy could face defeat in the and dealers AHG managing direc- pact SUV, a ute/pickup truck, tor, Bronte Howson, says Senate, even if it is endorsed Contact At Once! provides a large truck, and a city bus. the dealership represents by the Coalition. online and mobile chat and
AUTOTALK.COM.AU AUGUST 2016 | 15 PEOPLETALK
Dealer profile: Max Kirwan Mazda
Continued from page 7 without any cruise controls, ABS, new car retail dealer, and not a fleet long-term business plan. We revisit the electric windows, satellite navigation, dealer. We are trading in privately- last two every year. airbags, and traction control systems. owned cars, not fleet cars, which are in We ask Mazda what its intentions When you consider that you can buy good condition with low mileage. are short and long term, and we look at a Mazda3 21 years later for about 40% new products and what volume of sales less than what it was selling back then, 6. Have you got any key targets for the the carmaker expects. From that we with all the new features added, you second half of 2016/2017 in terms of decide how we can exceed those goals. realise how affordable new cars are in growth, sales, new dealerships, staff Then we build a 12-month business the context of average salary increases. recruitment and facility upgrades? plan around that in terms of what we The other factor is interest rates. For our dealership there isn’t much need to do logistically and in terms of When I was a finance and insurance facility change going on, but we have staff. Then we explain our objectives to manager in the late 1980s, a loan a new dealership opening in South our staff and we offer high incentives. contract could be somewhere be- Morang in 2017. Mazda has appointed If I had to describe our day-to-day tween 22% to 25% and for a corporate us as the Mazda dealer, so that is keep- management it would be best de- customer between 18% to 22%. When ing us busy as we get ready to build on scribed as “constant gardening”. We you consider that now car loans are the property. know where we are going, what our around 10% or less, coupled with cost The balance for this year is to objectives are, and we are constantly relative to income levels, it’s a great achieve the objective of 3500 new car working towards them. opportunity, and I think this is why the sales and 700 used car sales, which Another of our key aims is to retail car market keeps growing. would put us just above 4200 units for provide the best employment condi- At the moment our finance penetra- the year. And the 3500 new cars would tions for our staff. We have turnover tion is around 30%, so around 30% of constitute a new state and national of about 2% to 3% per year, which is new and used cars we sell are financed, single site record for Mazda. extremely low. We work hard to make that has been a reasonably steady figure. We have set new state and national sure our conditions are better than The one thing that has changed is records for the last seven years in a anyone else’s. For example, we don’t used car sales. With the arrival of the row. And we just set a monthly new trade Sundays and we offer our front- internet, we have seen a lot of vehi- car sales record of 407 units in June. end staff a five-day week. cles sold online and a reduction in We have won a Mazda master We also have better remuneration independent used car yards, and more dealer award for the last nine years in packages than other dealerships, so if business returning back to dealers. If a row, and we are hoping to continue you work for us you will earn a lot more you have a new and used car fran- that trend. What we are most proud than at other dealerships. The trade-off chise, you have first crack at trading of is our number one ranking nation- is you need to be a high achiever. vehicles; for example, we normally ally for sales and customer service wholesale about 110 used cars every satisfaction in the metro one category 4. What online strategies do you have month, and we keep 40 to 50 on top for the sale of 150 units per month, in place to increase sales and get of that for retail stock. which is usually the hardest category people coming into the dealership? So we normally sell around 300 to in which to have the best customer We have done a lot of research on 330 new cars per month and probably satisfaction ranking because there are what works in terms of creating online trade around 150 to 160 cars. We check many more customers to keep happy. leads. For example, we do direct feed the ones that are good enough to keep We service approximately 100 car per enquiry from online platforms to our and we keep 40 to 50. But, if you are a day, and approximately 300 new car dealership and we can tell when they used car yard you can’t do that. It’s one customers per month, so that’s a lot are coming from that medium. The of the benefits of being a high-volume of people to keep happy. online strategy is important in terms of the data it generates and what it tells us about how well it is working and where we need to improve. Also, it is a lot more cost-effective than other traditional media once you get it right.
5. Where are Australian dealerships’ biggest opportunities and challenges in the current market? When I was new car manager in 1995, a new base model Mazda 323 – currently a Mazda3 - was $35,000
16 | AUTOTALK.COM.AU | AUGUST 2016 PEOPLETALK
From the election we can see that the government has a very narrow majority of one
hey will likely have a tendency to cheaper vehicles. relaxing of the rules around imported be a protectionists and to be timid. It is no longer 1996. It is a different vehicles - the establishment of a sen- TWe call on the new government world, technology and the market has sible system for the checking of cars to be bold, to implement the reform moved on, and it is time for a different that come into the country, and not agenda of the Productivity Commission type of mindset that will allow us to be just top end, virtually new cars. and the Harper Review has recom- competitive in the future. The new vehicle industry will tell mended and open up the you that this will affect local jobs at parallel imports. dealerships. How can having more More directly, we would By Jack Sandher, president of the products in the market to sell de- call on minster of small Australian Imported Motor Vehicle crease dealership jobs? business Michael Morcor- Industry Association (AIMVIA) They will tell you that these cars mack to embrace a bold can be serviced. How can a car made spirit of competition and on the same foreign production line reform for the small businesses. We ask the government to not get as a locally sold one not be serviced? This could be created as part of the distracted by the nervous nellies and They will raise issues about parts, changes in these laws, and deregu- pressure from the Federal Chamber of warranties and everything else. These lation of the motor vehicle sector. Automotive Industries. can all be taken care of - creating jobs The Senate may also well be The FCAI is a group that will soon and trade in the process. protectionist in these circumstances represent only importers, and the The current rules were written at and likewise we call on them to outdated laws which protect them time when manufacturing was still consider the interest of all Austral- will likely be questioned by smart viable, almost 16 years ago. ians, particulary the consumer who Australian consumers. Its time to update them and give has a right to a broader choice and We will continue to call for the Australians a choice.
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AUTOTALK.COM.AU AUGUST 2016 | 17 PEOPLETALK
Your underwear will soon be appropriate car shopping attire
raig has been on his way down to Craig’s lounge room than you embrace the change! the sales funnel to purchas- might like to believe. Not all technologies and disrup- Cing a new vehicle for a while American online vehicle retailer tors end up changing the way we do now and is finally drawing close to the Vroom this week launched a virtual business. Google Glass was touted as a stage where he plans to roll out of a reality car shopping experience, game changer but it turned into a mon- dealership in a shiny new car. allowing people like Craig to visit a umental flop before it even got going. After months of research, Some disruptors gather momentum and reading reviews and com- are on the cusp of breaking the status paring specs of potential pur- By Chris Polites, dealer quo, but the flash in the pan invariably chases, Craig is ready to take director, carsales.com.au fades. Look at Scoopon, Groupon, Cudo the next step on his path to [email protected] and all the rest. Those daily deal sites purchase and start inspecting threatened to change the way the entire and test driving vehicles. retail industry operated, yet they flamed It’s a grey and dreary out as quickly as they ignited. Saturday afternoon. Gazing out the dealership without even slipping on This shouldn’t ever dissuade you window it appears as if the heavens their Hush Puppies to leave home. from embracing change. are about to open up. Craig smiles to It’s an amazing development, albeit Being an early adopter of a new tech himself when he realises that he has a very early iteration of what it could like Vroom’s VR showroom is gener- no need to brave a downpour. He become. For dealers, the prospect of ally inexpensive and the benefits are walks into his lounge room, picks up something like this should be cause through the roof. Imagine being the his virtual reality headset and puts it for great excitement. first to try out something like this while on. Five minutes later he has walked Imagine Craig lives halfway across the your competition ums and ahs. When around the exterior of the number one state from your dealership, yet without the general public flocks to it, your car on his shortlist - a Landcruiser, in leaving his home he’s having an up close business is one of the very few there case you were wondering - checked look at your stock. He finds something waiting for it. You’re ahead of the game. out its interior and is in the midst of a he likes, gets in touch and next minute As a business operator in this day ‘test drive’ down the virtual road. you’ve sold him his new Landcruiser, and age, you should never fear dip- In half an hour, Craig has taken plus you’ve made a tidy profit by organ- ping a toe in the water. Just be pre- virtual test drives of five different cars, ising vehicle delivery. pared to jump out if it’s too cold. At a process that would have usually re- As I mentioned, this technology is in least you can rest easy in the knowl- quired visits to multiple dealerships and its infancy, and is nowhere near being edge that you know for a fact that it taken up most of his Saturday. at a point where the visualisations meet doesn’t work for your business. It sounds like something from sci- reality, but it is not light years away. And if it works? Well you’re laughing ence fiction, but this tech is far closer The message here is a simple one: all the way to the virtual bank.
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18 | AUTOTALK.COM.AU | AUGUST 2016 NEWSTALK
Software connects mobile shoppers and dealers Contact At Once! provides online and mobile chat and text for over 15,000 auto dealers worldwide.
sing the immediate presence.” is able to manage all messaging con- mobile This is increasingly versations, opt-ins, opt-outs and lead Umessaging important in a world information through a single system. platform, dealers where more and more “Consumers love messaging are able to add of the automotive when it’s convenient for them,” chat and text to shopping process is says Flegge. “With the Contact At their websites, mo- conducted online and Once! messaging platform and smart bile sites, advertis- via mobile devices. conversation management solutions, ing listings, social “We’ve seen statistics dealers need never miss another op- media and more. where as much as 75% portunity to connect.” “There are many vendors who of the customer journey is now con- Contact At Once! is a LivePerson sell chat, but Contact At Once! is the ducted digitally,” says Flegge. “Shop- company and has recently moved into only automotive mobile messaging pers are less likely to visit a dealership, new offices in Melbourne. platform that can create a network of less likely to fill out a form on a mobile Those interested in learning more consistent connections among deal- device, and are left calling a dealership about Contact At Once! can sched- ers, manufacturers and online adver- and playing phone tag. It’s hardly a ule a demonstration by texting Adam tising sites such as Autotrader and satisfying consumer experience.” Flegge at 0481 072 347. To download Cars.com,” says Adam Flegge, Contact Shoppers using Contact At Once! the latest survey of dealership profes- At Once! Australia sales manager. software can start a chat or an SMS sionals’ opinions about using messag- “Wherever and whenever con- text with a dealership or a manufac- ing technologies with consumers, visit sumers are shopping for vehicles, turer, from any number of sites and http://go.contactatonce.com/2015- dealers and manufacturers can have advertising listings, while the business survey-au now.
AUTOTALK.COM.AU AUGUST 2016 | 19 PEOPLETALK
Gumtree assists dealers with leads and sales
hen Auto- mentation of UX technology, tools and devices we Talk spoke to enhancements. use in our daily lives are often more WJamie Moyle “In terms of advanced than the sales and mar- - digital manager for resultant sales, keting tools available in dealerships. Cockburn Central Mo- we have seen Effectively adapting to this change, tors and Car Giant WA 8% growth in keeping pace with it and making as well as manager of Gumtree sales sense of how it impacts business, are the Allen School and over this period.” some of the biggest challenges I see group accountant with “Having our still facing dealers. Gumtree - about what dealership de- “The automotive sales busi- attracted him to Gum- tails on Gumtree ness has been heavily influenced by tree’s online sales and is certainly online channels for some time now, Jamie Moyle advertising model, he Gumtree a bonus; we and many dealerships have inte- pointed out that several have noticed a grated processes throughout all their years ago dealers had higher percent- departments to take advantage of fewer options to list used cars online. age of walk-in customers referring to online opportunities. “eBay was one option that on the Gumtree as their referral source. The “We haven’t really moved to a full surface looked like it would be great opportunities realised around walk-ins online transaction process that I’m opportunity; however it proved to be are in addition to the growth in sales aware of; however I’m sure it’s not far a rather clunky interface requiring from corresponding leads.” away for some buyers. Whilst online a lot of effort and never seemed to When AutoTalk asked whether or marketing presents an efficient means gather the right traction for used cars. not Gumtree offers dealers more value for dealers to reach a digitally en- “Gumtree emerged as an alternative, over Carsales and CarsGuide in terms gaged audience, it doesn’t guarantee promising a similar audience of en- of online advertising, car sales and cus- a bigger return on investment. Pro- gaged buyers. With its easy setup and tomer service, Moyle said, “There are gressive dealers are looking to lever- realistic rate card it was an easy transi- significant differences between each of age digital opportunities from insights tion away from a site that promised big these providers, it’s not a one-shoe fits gained across all areas of their busi- and delivered little.” all market place. ness in order to realise and maximise He has also had experience using “We are certainly happy with the return on investment - the recipe for Gumtree as a vehicle dealer since 2012 service gumtree provides and recent this will vary dealer to dealer.” via all vehicle price ranges up to 80k+. improvements have enhanced both Finally, AutoTalk asked Moyle Previously Moyle was digital man- consumer engagement, leads volumes where he thinks the biggest room for ager at the John Hughes Group (1000 and sales. In the third quarter of 2015 improvement is in the online car sales plus cars) and also Westside Auto Gumtree’s source represented approxi- process. “I see dealerships as having Wholesale (900 plus cars). mately 6.5% sales, that has now lifted the biggest room for improvement, “The guys at Gumtree have worked to almost 15% in the second quarter of with the online sales process. It’s un- to improve their dealer offerings 2016. For us this has been a significant realistic for dealers to implement and within their classifieds’ model over swing in results and one we intend to manage every available online market- the years, and with the additional nurture moving forward.” ing opportunity that pops up on the features that they now offer we can In terms of how digital car sales are radar,” he said. simply choose one of several listing shaping the industry and whether they “What they can strive to ensure is options to best suit our require- are giving dealers more time to focus that their people are digitally aware, ments,” Moyle told AutoTalk. on other issues, Moyle has a pragmatic have appropriate tools and great pro- “Over the last 12 months we have view of the whole change to digital as cess to engage with customers who seen an increase in both leads and follows. “In recent years we have seen choose to engage with them online. corresponding sales. Gumtree’s a dramatic shift in consumer behaviour Furthermore, they should regularly contribution to our lead volume has in terms of how customers choose to evaluate the efficiency of every staff lifted 6% over the last 12 months. I engage with the dealers,” he says. member and online channel to ensure believe this to be directly attributable “We now perform more tasks ‘on their continued improvement with a to the Gumtree team’s onsite imple- the run’ than ever before and the results-orientated focus.”
20 | AUTOTALK.COM.AU | AUGUST 2016 DIESELTALK AUTOTALK.COM.AU/DIESELTALK
First ever national heavy vehicle safety survey launched
he largest national survey of Inspections will be conducted heavy vehicle fleets was of- by authorised officers at road- Tficially launched at Australia’s side checkpoints and in depots Heavy Vehicle Engineering Confer- throughout Australia. Each vehicle ence (ComVec) in Melbourne. will have a visual inspection and, Currently, different data and depending on the condition of the inspection regimes are undertaken vehicle, some may take on aver- in each state and territory, which age 45 minutes. means that the roadworthiness of The NVHR notes: “All heavy heavy vehicles nationally is unclear. vehicle inspections will rely on the National Heavy Vehicle Regu- National Heavy Vehicle Inspection lator (NHVR) chief Sal Petroc- Manual (NHVIM) to create a more citto says the National Roadworthi- 520,000-strong heavy vehicles. harmonised national network.” ness Baseline Survey, which began “We are encouraging operators to The survey is the second leg of the on August 1, will allow the NHVR be aware of the survey when schedul- roadworthiness programme, fol- to properly understand the health ing to allow appropriate inspection lowing the release of the NHVIM in and roadworthiness of Australia’s times,” Petroccitto says. December 2015. Wynnum Haulage delivers the goods on Cat Trucks
ver the past two them,” he says of the two of weeks’ “free work”. But them going. The name of the years, Wynnum CT610s and two CT630s. both he and the drivers fell game is prioritising freight in OHaulage, owned Bailey is particularly in love with it. “We asked the yard,” says Bailey. and managed by Paul ‘Bud- pleased with the 13-litre the finance bloke what he The first new Cat Truck dha’ and Tina Bailey, has CT610s with its balance of could do and it went from came into the fleet two been successfully deliver- fuel economy and dependa- there,” he adds. years ago, followed six ing freight containers in a bility, but he says he has been The Wynnum Haulage months later by the first quartet of Cat Trucks. blown away by the power operation is a family affair, CT630. Two more Cat ac- The operation is based in and torque of the 15-litre C15 with Tina heading up the quisitions followed. the dock area of Brisbane, engines in the CT630s. three-person administra- With the trucks running with a business office in the “When I brought one tive and office side of the predominantly in urban bayside suburb of Wyn- up from Melbourne as a business, while Buddha industrial areas, this is not a num. With 11 trucks in the b-double, I put a good load keeps the trucks rolling. high-mileage vocation. The fleet plus container-lift on it and it wanted more! It Organising an 11-truck CT630 running in a b-dou- machinery, the business was seriously a case of, ‘oh fleet in what is mostly a ble application is six months’ shunts boxes from ships in my god!’ No matter what short-haul operation can old and has knocked up the container terminal to a you throw at it, it just gets be complex. The drivers 40,000 kilometres. multitude of destinations. up and performs. It will pull have a rolling start time, “That truck has had a few Buddha Bailey says the up the Gateway Bridge in with trucks heading out trips away. I like to get it on best thing about the Cat top gear with a heavy load. between three and five a longer run at least once Trucks is their dependability. Unbelievable,” he says. o’clock in the morning. a month to give it a bit of a “I can count on them. I Bailey says he took a “The more we deliver, the ‘clean-out. I expect it will have not had to touch them CT610 Cat Truck on trial, more money we make for do about 100,000 clicks per - we’ve had good run with thinking he’d get a couple the day - so we have to keep year,” says Bailey.
AUTOTALK.COM.AU AUGUST 2016 | 21 DIESELTALK AUTOTALK.COM.AU/DIESELTALK
EU fines truck producers $4.29bn for cartel behaviour
he European Commission has gether account for around nine out introduction of emissions technolo- found that MAN, Volvo/Re- of every 10 medium and heavy trucks gies for medium and heavy trucks to Tnault, Daimler, Iveco, and DAF produced in Europe, were part of a comply with the increasingly strict broke EU antitrust rules and colluded cartel instead of competing with each European emission standards (from to keep prices artificially high at the other. For 14 years they colluded on Euro III through to the currently expense of consumers. the pricing and on passing on the applicable Euro VI); and the passing The commission has imposed a record costs for meeting environmental on to customers of the costs for the fine of €2.926 billion (A$4.29 billion). standards to customers.” emission technologies required to The commission notes: “These The decision relates specifically to comply with the increasingly strict truck makers colluded for 14 years on the market for the manufacturing of European emission standards (from truck pricing and on passing on the medium (weighing six to 16 tonnes) and Euro III through to the currently ap- costs of compliance with stricter emis- heavy trucks (weighing over 16 tonnes). plicable Euro VI). sion rules.” The commission’s investigation The infringement covered the MAN was not fined as it revealed revealed that MAN, Volvo/Renault, entire European Economic Area the existence of the cartel to the Daimler, Iveco and DAF had engaged and lasted 14 years, from 1997 until commission. All companies acknowl- in a cartel relating to: coordinating 2011, when the commission carried edged their involvement and agreed prices at ‘gross list’ level for medium out unannounced inspections of to settle the case. and heavy trucks in the European the firms. From 2004 onwards, the Commissioner for competition Economic Area (gross list price level cartel was organised via the truck Margrethe Vestager notes: “It is not is truck’s factory price as set by man- producers’ German subsidiaries, acceptable that MAN, Volvo/Renault, ufacturer and basis for pricing in the with participants generally exchang- Daimler, Iveco and DAF, which to- trucks industry); the timing for the ing information electronically. Fatalities involving heavy vehicles down almost 20% in a decade
he number of fatal crashes kilometres travelled (VKT) decreased involving heavy vehicles in Aus- across all three categories. Ttralia has decreased dramatically Of those killed in heavy vehicle ac- over the last decade according to new cidents, 73% are vehicle occupants (ei- road trauma statistics. ther driver or passenger) and of these The Bureau of Infrastructure, 24.1% are heavy vehicle occupants. Transport and Regional Economics There are three key crash types (BITRE) released its 2015 report detail- associated with heavy vehicle fatali- ing counts and rates of fatal crashes, ties – intersection crashes, head-on fatalities and hospitalised injuries from crashes and single vehicle run-off- road traffic crashes involving one or road crashes. For articulated trucks, more heavy vehicles. vehicles in 2015. Of the three heavy head-on crashes at 33.6% were the Over the last ten years, the num- vehicle categories, deaths related most common in 2015. Heavy rigid ber of deaths from crashes involving to accidents involving an articulated trucks were most likely to be involved heavy vehicles has declined by 19.8%. truck were the most common at 53%, in intersection accidents at 32.2%. This equates to an average decrease followed by heavy rigid trucks 37.2% Between 2008 and 2014, the major- of around 3% each year. and buses 9.8%. ity (51.9%) of fatal crashes involving The report revealed 211 people In the last 10 years, heavy vehicle heavy vehicles occurred on national or were killed in crashes involving heavy fatal crash rates per billion vehicle state highways.
22 | AUTOTALK.COM.AU | AUGUST 2016 EVTALK AUTOTALK.COM.AU/EVTALK
‘Tipping point for mass EV uptake is here’
e believe the tipping point owners charge at home, 98% of UK Melbourne’s ‘Tesla Town’ for mass electric vehicle (EV) motorway services now have charging development under way Wuptake is upon us. This is the stations, including rapid connectors Yarrabend is the latest housing view of the UK’s Edward Jones, EV that can charge a Nissan Leaf’s battery development located just outside Mel- manager for Nissan Motors (GB). to 80% in just 30 minutes. The 30kWh bourne, which will accommodate each “As EV sales take off, the charging Leaf, launched in January, delivers up owner with a Tesla Powerwall, accord- infrastructure is keeping pace and to 250km on a single charge – a range ing to Electrek. paving the way for convenient all- that covers more than 90% of the av- The planned community by the electric driving in the UK. Combine erage daily commuting requirements. Glenvill development company is pow- that with constant improvements Nissan recently announced the joint ered by solar energy and every home in our battery performance, and we development of an atomic analysis comes standard with Tesla Powerwalls believe the tipping point for mass EV methodology that uses amorphous to store and dispense electrical energy. uptake is upon us,” he says. silicon monoxide (SiO) to increase the Yarrabend isn’t just a developer’s “As with similar breakthrough tech- energy density of its lithium-ion bat- graphical excursion. Houses number- nologies, the adoption of EVs should teries. This development alone could ing 60 have already been built out of follow an ‘S-curve’ of demand,” he adds. the increase driving range of future a planned 2500 in a suburban area Nissan claims to be the first manu- Nissan electric vehicles by 150%. 6.5km northeast of Melbourne. facturer to introduce a mass produced According to Go Ultra Low, the The homes, which range in price electric vehicle, and has sold more EVs joint UK government and car indus- from A$1.48 to A$2.1 million, are all than any other car brand worldwide. try campaign, more than 115 electric architecturally designed. The company has also been a strong cars were registered every day in the Yarrabend will have the highest advocate of supporting convenient first quarter of 2016, equivalent to ecologically sustainable development charging infrastructure, even going one every 13 minutes. The campaign rating from the Urban Development so far as to partner with Ecotricity last also believes electric power could be Institute of Australia (UDIA) and will year, and calling on the UK govern- the dominant form of propulsion for be, “one of the most environmentally ment to introduce official EV charging all new cars sold in the UK as early as sustainable developments in Aus- point road signage. 2027, with more than 1.3 million EVs tralia”, according to UDIA chief Whilst the vast majority of EV registered each year. Danni Addison. Continued on page 24
Yarrabend Tesla Town
AUTOTALK.COM.AU AUGUST 2016 | 23 EVTALK AUTOTALK.COM.AU/EVTALK
Continued from page 23 in Europe, and Germany in particular, US last year to become the global “The Powerwalls, combined with will be greatly expanded so that drivers market leader. solar panels, will mean that future will no longer incur ‘range anxiety’. residents will be able to benefit in “In lockstep with the expansion a variety of ways, including smaller levels of the charging infrastructure, power bills and knowing that the ma- the demand for EVs will rise,” he said. jority of their energy usage is coming Stadler also spoke on Audi’s plans from a clean and renewable source,” for automated driving. The company Addison says. differentiates between fully automated “The electric car charging points will driving and something Audi calls ‘pi- Nissan EV’s be another available option. Combined loted driving’. The latter already allows with the Powerwall and solar panels, it the driver to take hands off the wheel is likely that ‘refuelling’ future residents’ and eyes off the road at speeds up to Nikola revealing electric truck electric cars will be free.” 60km/h. This feature will be available prototype in December Solar energy and home power stor- in the A8 flagship model scheduled for A working prototype of the electric age systems so far are usually single 2017. Gradually piloted driving capabil- Nikola One commercial class 8 semi homeowner installations. As possibly ities will be enhanced to enable drives truck is to be made public on Decem- the first major development designed at higher speeds. ber 2 in Salt Lake City, Utah. around sustainability that includes the Nikola Motor Company (NMC) says use of solar power with home batter- it has already taken more than US$2.3 ies, Yarrabend could serve as a model billion in reservations, totalling more for a later communities in other parts than 7000 truck deposits. of the world. The Nikola One truck leasing pro- Official contract signing for the gramme costs US$4000 to US$5000 per houses is expected began this month, month, depending on customer choice with residents expected to begin mov- in vehicle configuration and options. ing in by late 2017. BYD-plug-in NMC includes the first million miles of fuel with each truck sale, poten- Audi aims to add three EVs by 2020 tially offsetting 100% of the monthly Within two to three years, users can Samsung invests $625m into cost. It says an average Class 8 diesel expect several plug-in hybrids and by Chinese EV maker semi truck burns around US$400,000 2020 three purely electric cars will be Electric vehicle manufacturer BYD, in fuel and can cost more than available at dealers, says Germany- already backed by Warren Buffett’s US$100,000 in maintenance expenses based carmaker, Audi. Berkshire, has received a huge invest- over 1,000,000 miles. For 2018, an electric SUV is sched- ment from electronics and engineering According to NMC, these costs are uled. It will be followed by an electric giant Samsung. eliminated with the Nikola One lease. compact model and, at a later point in Shanghai Samsung Semiconduc- It says companies can have a zero- time, offerings for the midsize segment. tor bought 52.3 million BYD shares at emission truck with a return on their Audi’s chief executive Rupert Stadler ¥57.4 apiece in a private placement investment in the first month. announced the model at a board that raised ¥14.5 billion in total from six “While other manufacturers have meeting, although he did not elaborate investors, according to a statement to announced battery-powered semi on the timeline. Shenzhen Stock Exchange. trucks, these vehicles are restricted to Audi’s intent to invest massively into Samsung pursued a stake in BYD a range of only a couple hundred miles electromobility is in line with the car- after its affiliate was among foreign and four to eight hours of charging maker’s shift in focus to electrification battery makers left off a supplier list ap- between stops,” says NMC founder and autonomous systems. This focus proved by China, where sales of EVs are and chief executive Trevor Milton. on high-tech green solutions comes surging and the government has sped “We are not aware of any zero- in the wake of the larger Volkswagen up construction of charging points. emission truck in the world that can Group’s diesel emissions scandal that The world’s largest maker of phones haul 80,000 pounds more than 1000 rocked the company last year. and memory chips says investing in miles and do it without stopping. The Longer term, by 2025, Stadler BYD will bolster Samsung’s semicon- Nikola One requires only 15 minutes of expects a 25% to 30% share of electric ductor business for cars. downtime before heading out for the cars in Audi’s sales. Quite a remark- BYD will use the proceeds from the next 1000 miles,” he notes. able share, given the fact that today placement to fund an expansion in In addition to the zero-emission the Volkswagen subsidiary has not a battery production and research and semi truck, NMC has initiated the first single electric model in its catalogues. development into new energy vehicles. steps to manufacture emission-free The target market will be China in China’s government wants sales power plants that range from 50Kw to the first place. However, Stadler is con- of EVs to exceed three million units 50MW, cutting electricity generation vinced that the charging infrastructure a year by 2025, after surpassing the costs in half.
24 | AUTOTALK.COM.AU | AUGUST 2016 STATSTALK
Vehicle sales climb in July thanks to booming SUV, LCV sales
A record-breaking year for Australia’s motor industry remains a likely prospect after the industry recorded its second best July sales, with new car sales reaching 91,331.
hilst July recorded record compared with the same month last numbers, it was down by year, and this segment’s year-to-date W37,238 or 29% on the record- sales for 2016 are up 10.3%. breaking sales for June 2016, which Toyota continued to lead the market Toyota Camry Atara SX reached 128,569 new vehicles sold. in July, posting 17,465 sales for a 19% The July 2016 market of 91,331 share. It was followed by Mazda with Interestingly, in the first month of the new vehicle sales is a decrease of 977 8460 sales (9.3% share), Hyundai with new financial year, business purchases vehicle sales or 1.1% on July 2015 7603 (8.3%), Holden 7071 (7.7%) and of new vehicles in July were up by (92,308) vehicle sales. However, July Ford in fifth place with 6894 sales (7.5%). 11.7% over July 2015. This was, in the 2016 (26) had one less selling day New South Wales remained the main, reflected by the increased pur- than July 2015, which resulted in an dominant state market with 30,219 chase of SUVs and light commercials. increase of 93.9 vehicle sales per day. vehicles sales, followed by Victoria The Toyota Corolla was the top- The July outcome, as recorded by (25,517) and Queensland (18,445). selling vehicle in Australia for July 2016 the Federal Chamber of Automotive The chief executive of the FCAI, (3427 sales), followed by the Toyota Hi- Industries’ VFACTS, brings the 2016 year- Tony Weber, says that despite the po- lux (3136), Ford Ranger (2874), Hyundai to-date total to 689,471, or 2.8% more tential for a post-financial year mar- i30 (2216) and the Toyota Camry (2172). than for the first seven months of 2015. ket ease, particularly coming in the Signifying the increasing multi-na- wake of a lengthy Federal election, Toyota gets gold and silver places in July tional sourcing for Australia’s vehicles, buyer confidence remains strong for Toyota had a particularly good month Thailand became the leading country the second-best July on record. as it recorded its best July in four years, of origin for national sales for the first “The ongoing strength of SUV sales, selling more than twice as many new time in July. especially among business buyers, is vehicles as any other brand. Sales of Thai vehicle imports dur- bringing a healthy momentum to the Corolla and HiLux combined for ing July totalled 23,803, ahead of market,” he says. a sales quinella as the nation’s two Japan on 23,359. Thailand is the most popular models, helping to lift leading source country for Aus- Top ten brands July 2016 Toyota to 17,465 sales - its strongest tralia’s light commercial utility and 1. Toyota 27,465 July result since 2012. cab-chassis vehicles, as well as for 2. Mazda 8460 Toyota’s tally was more than 9000 some popular passenger vehicles. 3. Hyundai 7603 sales ahead of the nearest competi- Just as sourcing is transitional, 4. Holden 7071 tor and 9800 higher than the third- so too the composition of Aus- 5. Ford 6894 placed company. tralia’s vehicle market is undergoing 6. Mitsubishi 5412 The total was 3.7% higher than for change, with passenger car sales 7. Nissan 5304 July last year and the fourth consec- slowly declining in the face of a 8. Volkswagen 4193 utive month it has achieved year-on- growing market demand for SUVs year sales growth. 9. Kia — 3555 and light commercial vehicles. Corolla was Australia’s best-selling 10. Subaru 3356 In July, passenger cars accounted car in July, with demand topping 3400, for 41.6% of the market compared Top ten models July 2016 while HiLux was second with 3136 with 44.9% for the same month last 1. Toyota Corolla 3427 deliveries. These were the only vehicles year. SUVs in July accounted for a 2. Toyota HiLux 3136 to exceed 3000 sales for the month. 37% of the total market, and light 3. Ford Ranger 2874 Camry joined Corolla and HiLux commercials, also on the rise, 18.5%. 4. Hyundai i30 2216 among the top five bestsellers after Small passenger cars were Aus- 5. Toyota Camry 2172 posting 2172 deliveries, its best July tralia’s most dominant segment, 6. Mazda CX-5 1933 since 2005. with 16,787 sales during July, and 7. Holden Commodore 1874 Last month was also the best July medium and large SUVs were the 8. Toyota RAV4 1825 on record for the LandCruiser 200 next largest segments, with 12,716 9. Mazda CX-3 1744 series wagon (launched in 2007) and 11,264 sales respectively. 10. Hyundai Accent 1726 and the best July for LandCruiser SUV sales rose by 3.5% in July Prado since 2012.
AUTOTALK.COM.AU AUGUST 2016 | 25 STATSTALK
TOTAL MARKET SEGMENTATION JULY 2016 VFACTS National Month YTD Variance +/- Vol. & % 2016 2015 2016 2015 MTH YTD MTH YTD Passenger 38,033 41,420 285,182 302,172 -3,387 -16,990 -8.2 -5.6 SUV 33,817 32,679 256,210 232,350 1,138 23,860 3.5 10.3 Light Commercial 16,874 15,554 129,707 118,238 1,320 11,469 8.5 9.7 Heavy Commercial 2,607 2,655 18,372 17,975 -48 397 -1.8 2.2 Total Market 91,331 92,308 689,471 670,735 -977 18,736 -1.1 2.8 Month YTD Variance +/- Vol. & % Micro 1,166 1,029 5,399 6,875 137 -1,476 13.3 -21.5 Light 7,622 9,280 56,832 67,704 -1,658 -10,872 -17.9 -16.1 Small 16,787 18,060 134,799 138,779 -1,273 -3,980 -7.0 -2.9 Medium 6,027 6,559 40,740 42,389 -532 -1,649 -8.1 -3.9 Large 3,087 3,481 22,801 25,252 -394 -2,451 -11.3 -9.7 Upper Large 164 192 1,366 1,647 -28 -281 -14.6 -17.1 People Movers 1,006 1,144 7,628 6,607 -138 1,021 -12.1 15.5 Sports 2,174 1,675 15,617 12,919 499 2,698 29.8 20.9 SUV Small 8,307 9,373 66,652 62,729 -1,066 3,923 -11.4 6.3 SUV Medium 12,716 11,631 96,892 82,389 1,085 14,503 9.3 17.6 SUV Large 11,264 10,580 83,880 79,956 684 3,924 6.5 4.9 SUV Upper Large 1,530 1,095 8,786 7,276 435 1,510 39.7 20.8 Light Buses < 20 Seats 192 211 1,572 1,816 -19 -244 -9.0 -13.4 Light Buses => 20 Seats 31 50 323 361 -19 -38 -38.0 -10.5 Vans/CC <= 2.5t 338 311 2,184 2,578 27 -394 8.7 -15.3 Vans/CC 2.5-3.5t 1,558 1,569 12,038 10,204 -11 1,834 -0.7 18.0 PU/CC 4X2 3,611 3,259 26,624 24,197 352 2,427 10.8 10.0 PU/CC 4X4 11,144 10,154 86,966 79,082 990 7,884 9.7 10.0 Heavy Commercial 2,607 2,655 18,372 17,975 -48 397 -1.8 2.2 Total Market 91,331 92,308 689,471 670,735 -977 18,736 -1.1 2.8 PERCENTAGE MIX Month YTD Yr to Yr change +/- 2016 2015 2016 2015 MTH YTD Passenger 41.6 44.9 41.4 45.1 -3.2 -3.7 SUV 37.0 35.4 37.2 34.6 1.6 2.5 Light Commercial 18.5 16.9 18.8 17.6 1.6 1.2 Heavy Commercial 2.9 2.9 2.7 2.7 0.0 0.0 Total Market 100.0 100.0 100.0 100.0 0.0 0.0 Month YTD Yr to Yr change +/- Micro 1.3 1.1 0.8 1.0 0.2 -0.2 Light 8.3 10.1 8.2 10.1 -1.7 -1.9 Small 18.4 19.6 19.6 20.7 -1.2 -1.1 Medium 6.6 7.1 5.9 6.3 -0.5 -0.4 Large 3.4 3.8 3.3 3.8 -0.4 -0.5 Upper Large 0.2 0.2 0.2 0.2 0.0 0.0 People Movers 1.1 1.2 1.1 1.0 -0.1 0.1 Sports 2.4 1.8 2.3 1.9 0.6 0.3 SUV Small 9.1 10.2 9.7 9.4 -1.1 0.3 SUV Medium 13.9 12.6 14.1 12.3 1.3 1.8 SUV Large 12.3 11.5 12.2 11.9 0.9 0.2 SUV Upper Large 1.7 1.2 1.3 1.1 0.5 0.2 Light Buses < 20 Seats 0.2 0.2 0.2 0.3 0.0 0.0 Light Buses => 20 Seats 0.0 0.1 0.0 0.1 0.0 0.0 Vans/CC <= 2.5t 0.4 0.3 0.3 0.4 0.0 -0.1 Vans/CC 2.5-3.5t 1.7 1.7 1.7 1.5 0.0 0.2 PU/CC 4X2 4.0 3.5 3.9 3.6 0.4 0.3 PU/CC 4X4 12.2 11.0 12.6 11.8 1.2 0.8 Heavy Commercial 2.9 2.9 2.7 2.7 0.0 0.0 Total Market 100.0 100.0 100.0 100.0 0.0 0.0 NEW VEHICLE SALES / JULY 2016 Month YTD Variance +/- Vol. & % Total Market 2016 2015 2016 2015 MTH YTD MTH YTD AUSTRALIAN CAPITAL TERRITORY 1,486 1,496 11,061 10,477 -10 584 -0.7% 5.6% NEW SOUTH WALES 30,219 30,332 232,914 219,234 -113 13,680 -0.4% 6.2% NORTHERN TERRITORY 831 836 6,720 6,720 -5 0 -0.6% 0.0% QUEENSLAND 18,445 18,700 140,407 139,898 -255 509 -1.4% 0.4% SOUTH AUSTRALIA 5,210 5,256 41,229 39,941 -46 1,288 -0.9% 3.2% TASMANIA 1,389 1,445 10,176 10,487 -56 -311 -3.9% -3.0% VICTORIA 25,517 25,902 186,805 181,397 -385 5,408 -1.5% 3.0% WESTERN AUSTRALIA 8,234 8,341 60,159 62,581 -107 -2,422 -1.3% -3.9% Total 91,331 92,308 689,471 670,735 -977 18,736 -1.1% 2.8%
26 | AUTOTALK.COM.AU | AUGUST 2016 STATSTALK
NEW VEHICLE SALES BY MARQUE JULY 2016 VFACTS National Month YTD Variance +/- Vol. & % Total Market 2016 2015 2016 2015 MTH YTD MTH YTD Alfa Romeo 47 153 474 1,027 -106 -553 -69.3% -53.8% Aston Martin 5 10 70 77 -5 -7 -50.0% -9.1% Audi 1,936 1,760 14,095 13,103 176 992 10.0% 7.6% Bentley 14 8 81 65 6 16 75.0% 24.6% BMW 2,049 2,041 17,803 14,643 8 3,160 0.4% 21.6% Caterham 0 0 1 0 0 1 - - Chery 1 12 11 154 -11 -143 -91.7% -92.9% Chrysler 39 73 303 596 -34 -293 -46.6% -49.2% Citroen 77 83 607 750 -6 -143 -7.2% -19.1% Dodge 23 97 289 814 -74 -525 -76.3% -64.5% Ferrari 17 12 107 107 5 0 41.7% 0.0% Fiat 135 289 1,319 2,795 -154 -1,476 -53.3% -52.8% Fiat Professional 132 124 796 726 8 70 6.5% 9.6% Ford 6,894 5,747 47,277 40,557 1,147 6,720 20.0% 16.6% Foton Light 101 84 555 680 17 -125 20.2% -18.4% Great Wall 0 3 11 114 -3 -103 -100.0% -90.4% Holden 7,071 7,895 55,081 59,632 -824 -4,551 -10.4% -7.6% Honda 3,198 3,047 22,831 23,649 151 -818 5.0% -3.5% Hyundai 7,603 8,511 61,953 58,610 -908 3,343 -10.7% 5.7% Infiniti 38 41 395 312 -3 83 -7.3% 26.6% Isuzu Ute 1,849 1,536 13,306 11,763 313 1,543 20.4% 13.1% Jaguar 259 74 1,533 524 185 1,009 250.0% 192.6% Jeep 765 1,760 7,789 16,213 -995 -8,424 -56.5% -52.0% Kia 3,555 2,725 24,841 19,385 830 5,456 30.5% 28.1% Lamborghini 7 9 91 69 -2 22 -22.2% 31.9% Land Rover 1,203 1,066 8,551 6,419 137 2,132 12.9% 33.2% LDV 125 80 909 309 45 600 56.3% 194.2% Lexus 722 746 5,529 5,199 -24 330 -3.2% 6.3% Lotus 0 4 6 33 -4 -27 -100.0% -81.8% Maserati 36 34 321 316 2 5 5.9% 1.6% Mazda 8,460 9,356 69,433 65,947 -896 3,486 -9.6% 5.3% McLaren 18 5 45 21 13 24 260.0% 114.3% Mercedes-Benz 3,180 3,052 23,861 20,941 128 2,920 4.2% 13.9% MINI 293 270 2,181 1,941 23 240 8.5% 12.4% Mitsubishi 5,412 5,189 42,677 41,055 223 1,622 4.3% 4.0% Morgan 0 3 2 11 -3 -9 -100.0% -81.8% Nissan 5,304 4,937 39,077 37,887 367 1,190 7.4% 3.1% Peugeot 277 312 2,266 2,738 -35 -472 -11.2% -17.2% Porsche 319 388 2,949 2,458 -69 491 -17.8% 20.0% Proton 10 96 129 261 -86 -132 -89.6% -50.6% RAM 17 0 165 0 17 165 - - Renault 746 1,101 6,278 6,798 -355 -520 -32.2% -7.6% Rolls-Royce 1 2 16 20 -1 -4 -50.0% -20.0% Skoda 368 425 2,721 2,777 -57 -56 -13.4% -2.0% Smart 0 5 0 61 -5 -61 -100.0% -100.0% Ssangyong 26 78 280 683 -52 -403 -66.7% -59.0% Subaru 3,356 3,354 27,417 25,013 2 2,404 0.1% 9.6% Suzuki 1,417 1,384 11,550 11,452 33 98 2.4% 0.9% Toyota 17,465 16,840 119,809 118,554 625 1,255 3.7% 1.1% Volkswagen 4,193 4,908 34,002 36,928 -715 -2,926 -14.6% -7.9% Volvo Car 529 432 3,373 2,720 97 653 22.5% 24.0% Caterpillar 3 5 32 53 -2 -21 -40.0% -39.6% Daf 20 30 182 170 -10 12 -33.3% 7.1% Dennis Eagle 0 12 17 45 -12 -28 -100.0% -62.2% Foton Heavy 10 5 103 88 5 15 100.0% 17.0% Freightliner 42 53 343 303 -11 40 -20.8% 13.2% Hino 366 392 2,455 2,528 -26 -73 -6.6% -2.9% International 0 0 0 23 0 -23 - -100.0% Isuzu 655 666 4,619 4,003 -11 616 -1.7% 15.4% Iveco 115 132 864 858 -17 6 -12.9% 0.7% Kenworth 158 164 1,092 1,132 -6 -40 -3.7% -3.5% Mack 52 73 438 486 -21 -48 -28.8% -9.9% Man 16 15 127 154 1 -27 6.7% -17.5% Mitsubishi Fuso 314 306 2,258 2,052 8 206 2.6% 10.0% Nissan UD 55 56 387 413 -1 -26 -1.8% -6.3% Scania 45 59 314 344 -14 -30 -23.7% -8.7% Volvo Commercial 158 132 857 818 26 39 19.7% 4.8% Western Star 30 47 217 358 -17 -141 -36.2% -39.4% Total 91,331 92,308 689,471 670,735 -977 18,736 -1.1% 2.8%
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