OFFICIAL PUBLICATION OF AADA ISSUE 12 MARCH 2016

MINEFIELD AWAITS NAIVE ON PARALLEL IMPORTS IMPORT DECISION INDUSTRY REACTIONS TO IMPORT DECISION GUARANTEES GOVERNMENT RATIONALE POOR CONSUMER FLAWED ON IMPORT DECISION WANT MORE AFFORDABLE CARS? OUTCOMES EASY - TAX THEM LESS

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Box 4530 From the AADA Chairman...... 4 Eight Mile Plains, QLD 4133 From the AADA CEO...... 4 MTAA SUPER – the preferred CONTACT AUTOMOTIVE DEALER Level 1, 350 South Rd POLICY Hampton East, VIC 3188 Terry Keating: Government Naive On Personal Vehicle Import Issue...... 5 ABOUT US Issue No.12 March 2016 Parallel Imports Minefield ...... 6-7 choice of over 40,000 businesses Parallel Imports: Other Reactions ...... 8 PUBLISHER: AADA The Government’s Rationale ...... 9 MANAGING EDITOR: Changes to Parallel Import Laws – A Legal View ...... 10-11 Luke Prendergast Federal Government Backs Plan To Save Holden Plant ...... 12-13 ART DIRECTOR: Vergil Dela Cruz QLD Committee Recommends Uniform Lemon Laws ...... 14-15 Simplified super administration AADA Advocates In WA Motor Vehicle Acts Review ...... 16 ADVERTISING MANAGER: Geoff Vine Senate Committee Rejects Controversial Greens Bill ...... 17 [email protected] Mobile: 0413 854 779 Support of local business FEATURES PRODUCTION MANAGER: Stace Nagle Vale Michael Tynan – A Giant Of The Industry ...... 18 development managers [email protected] Want More Affordable Cars? 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MTA0071 – Trade Ad Design.indd 1 11/01/2016 8:52 am WELCOME Australian Automotive Dealer Association FROM THE AADA CHAIRMAN

When, in 2014 and at his request, I took Firstly, be assured we are working to over Michael’s role on AADA as the prepare the best submission to ASIC that NSW director, he finished our telephone we can on the finance flex matter. To ASIC’s Terry Keating conversation with the words, “God bless credit, they have allowed us some extra AADA Chairman you”. At the time I thought it was an time to consult with interested parties and unusual comment between two Dealers, prepare a quality submission. We will keep but was struck by the sincerity and warmth you posted. n the 8th of February I attended the of his words. funeral of Michael Tynan OAM. The second issue is the surprise O Only at his funeral did I realise that announcement by Minister Fletcher on Michael was a major new car Dealer in the this comment was his trademark way of personal imports of ‘new’ vehicles. Sadly, Sutherland Shire area of Sydney, where he thanking people. the policy is flawed and we expect the had operated for many decades. He was for public will become much better informed On behalf of all of our members I would a number of years prominent in local affairs on the pitfalls in the near-two-year like to offer our condolences to Michael’s as the mayor of his shire, as well as a past timeframe before its introduction. family and our respects to his many friends president of MTA NSW and, of course, the and colleagues. Interestingly, the Minister describes a new inaugural NSW director on AADA. car as being less than one year old and with On your behalf may I say, “God bless you, He was a man who was not only very less than 500km. Try convincing your local Michael”. successful within, but also gave much back Consumer Affairs office that a one-year-old car is new. to, our industry. Many businesses in the Throughout our magazine and other press wider motor industry, not just new car releases we address two new and equally Dealers, may not know how great a debt of important issues. gratitude they owed to Michael. FROM THE AADA CEO One of the central themes of our earlier, Another major risk will be customers’ detailed submissions to the Government on limited protection under Australian this subject was the undeniable, empirical Consumer Law. Bruce McDonald fact that the Australian new car buyer has a phenomenal choice of makes and models. Finally, but very importantly, a vehicle AADA CEO identified as a ‘PIV’ will undoubtedly have The feedback we had received was that the a less attractive resale value than a vehicle ecently I participated in a media Government understood our argument. sold and serviced by Australia’s network of conference at Parliament House, After all, the case is compelling. franchised Dealers. RCanberra. Hence our strong, negative reaction This announcement is still very recent. Fellow participants in the conference to their unexpected announcement, Much discussion and debate will be were Tony Weber, CEO, Federal Chamber especially following the Government’s wise undertaken between now and 2018. All of Automotive Industries (FCAI), and decision to reject the Harper Productivity parties, including AADA, will be expected Geoff Gwilym, Executive Director, VACC, Commission recommendation to allow the to understand and, where appropriate, representing the MTA. importation of used vehicles. confront the ‘devil in the detail’ of the Government’s policy. Senator Nick Xenophon, Independent The other major concern I strongly voiced Senator for South Australia, arranged the on behalf of Australia’s franchised Dealers I assure you AADA will play a major role event. Its purpose was to advise the media was the transfer of risk and associated in this vital area for our Dealers. One of of our strong disappointment with the uncertainty this announcement meant for our major responsibilities is to support our earlier announcement made by Minister car buyers who desired to purchase a PIV. franchised Dealers, who have invested tens Paul Fletcher regarding the Government’s of millions of dollars in facilities, training unexpected decision to allow personal In the flawed belief that Australian car and diagnostic equipment to ensure their importation of near-new vehicles (PIVs) buyers need more choice, the PIV process customers’ experience is consistently from 2018. will expose consumers to many risks and outstanding. uncertainty, including the vehicle’s history, My ‘headline’ comment to the media was lack of support from their local selling Please contact me at any time for an update that AADA was surprised and disappointed Dealer (because there isn’t one!), no ADR to this matter. by the announcement. compliance or ANCAP safety rating and lack of manufacturer warranty. In the meantime…watch this space! POLICY Australian Automotive Dealer Association TERRY KEATING: GOVERNMENT NAIVE ON PERSONAL VEHICLE IMPORT ISSUE

am amazed at the naiveté of the Federal car where they can, but if a vehicle requires problems with balancing his budget. The Government’s decision to allow the parallel diagnostic equipment unique to that model deficits are scary. Yet this same administration Iimportation of motor vehicles by individuals. and not available in Australia, where to then? says it will happily ship offshore a raft of government revenue to either the UK or Japan. For a start, a Federal Government Minister has You will all be aware of other issues, such put out an implied promise that buyers will as lack of recall notices, limited warranty If our federal masters were genuinely serious save money by opting to purchase overseas. (international warranty is usually two years), about making new cars more affordable in This is highly misleading, as the facts suggest inappropriate cooling systems and, of course, this country, they should look at the tax take that anyone with a budget up to $100,000 very questionable resale value. on every vehicle sold. Minister, do the public would be seriously out of pocket on the a real favour. Get rid of the Luxury Car Tax. purchase price alone, without factoring in If this policy is to survive it is incumbent on Take a look at the stamp duty and registration all the other problems they would face. Even the minister to ensure potential buyers are costs. Have a think about how much new car where the transaction price is much higher, it fully informed, otherwise this government has Dealers in this country pay to state and federal put out false hope and hidden the fine print. would in most cases be line ball or worse to authorities in income tax, payroll tax, land tax, workers compensation fees and the super opt for an offshore purchase. It is also amazing that the Minister defines guarantee levy. a new car as less than one year old and with None of this takes into account the many other less than 500km on the speedo. The average potential problems a buyer would encounter. I’m not suggesting some of these imposts Australian has a very clear definition of ‘new’, For example, luxury vehicles made to should not be there, but they are costs we incur as do we. Cars of that age and mileage are United Kingdom specifications have engines because our employees want and are entitled secondhand. This, of course, then opens up the calibrated to run on low sulphur content fuel. to a decent standard of living. opportunity for organised crime to steal cars That quality of fuel is not available in Australia. to order. If it is under one year old the mileage Finally, I have had many calls and emails from The end result of using sub-optimal fuel is loss is irrelevant. They will simply ‘give it a haircut’ Dealers right around Australia. We should all of performance and possible (that may well and, bingo – 500km. That also opens the contact our local member and make sure he or be probable) engine degradation. Any such possibility that some unsuspecting buyer who she fully understands the fallout. If a buyer of problem would not be warrantable, as the got a great bargain has no title to the goods. a personal import has major problems, we will owner’s handbook stipulates the type of fuel to And I could go on. probably not be able to help them. Nor will be used. Consumer Affairs. Nor, I suspect, will a lawyer. I am staggered when we read daily that Their only redress will be their local member. Servicing in Australia could also be an issue. Treasurer, Scott Morrison, is having enormous Australian Dealers will gladly service any

automotivedealer.com.au | MARCH 2016 | 5 POLICY Australian Automotive Dealer Association PARALLEL IMPORTS MINEFIELD

he Federal Government’s decision to Former AADA Chairman, Ian Field, said the process, for the life of the vehicle. These are not allow the private importation of new- change of heart opens up potential minefields consumer durables that get thrown away. They Tnear cars has huge potential negative for Australian Dealers and consumers. last for a long time, they are highly technical ramifications for the local industry, AADA and they require competent people to maintain believes. “In Australia, it is part of the Franchise them. But they also require educated drivers Agreement that a Dealer must personally who know what it is they’re supposed to be The Government announced planned changes deliver the vehicle to the customer. You can’t doing. If there is no process, if we’re going to to the Motor Vehicle Standards Act 1989 just put it on a truck and send it to them; cut out that process completely and they’re just in early February, claiming it would “give you have to personally deliver it to explain going to have them delivered to the wharfs in more choice for car buyers and save industry the systems and make sure the customer is Australia, what we’re saying is, ‘good luck!’” over $70 million a year in lower regulatory familiar with their responsibilities as well as compliance costs”. the Dealer’s responsibilities, and explain the Mr Field said the media was making a big deal warranty procedure. It’s part of the process,” of customers being able to bypass Australian The law will be changed so that, from 2018, a he said. Dealers, but in reality the new policy would consumer will be able to personally import a just send business to overseas Dealers. new car or motorcycle from another country “If our systems are compatible with the vehicle with comparable standards to Australia, up to on-board computer systems, we will be able “Where do they think they’re going to buy once every two years, if specified conditions to service them, but they are not necessarily them from? The factory’s not going to supply are met. spec-ed exactly the same. They have different them. Factories supply them to their Dealer communication systems for different body; they don’t sell them to the public. If this The vehicle must be a motorcycle or right- markets and we won’t necessarily have the is about the Tesla model, that somehow the hand drive passenger vehicle, be no more than communication technology to communicate factories are going to start delivering them 12 months old and have no more than 500km with the car and be able to service it easily. I anywhere in the world, that’s not going to on the odometer. know of one instance where a guy bought a happen. car in South-East Asia and no matter what The Australian Government will specify the they did, they just couldn’t fix it. It was really This is the point politicians miss: if it’s that countries considered to have comparable a compatibility issue with the on-board easy and cars are that much cheaper, do they standards. Of the world’s right-hand drive computers. They actually sent him to Malaysia think the Dealers aren’t going to do it? If that’s countries, Japan and the United Kingdom to get fixed! what it’s all about – letting us go and buy currently meet the standard. Other countries them – well I don’t want to, because I won’t may be included upon reaching a comparable The manufacturers understand it’s not just have the support that I need to look after my standard. the sales process; it’s the sales and support customers.”

6 | MARCH 2016 | automotivedealer.com.au “It’s not just selling the vehicle; it’s all of the assumes it’s self-interest. The trouble is the stuff that comes with the lifetime ownership, people who own the Ferrari will go to the and at the end of the ownership period – I Australian Ferrari Dealer and say, ‘what are can tell you this as a Dealer – the resale value you going to do about it?’, and what we’re of a car that is not compliant to Australian saying is, we don’t know what to do with these specifications – in other words, a vehicle that vehicles. We don’t want to be embarrassed or does not have an Australian compliance plate have the customers who buy these products – is something we just don’t want to know. being embarrassed. We tried to tell the We do not buy them. My company’s policy Government that this is fraught with issues is we do not buy cars without an Australian and will cause enormous consumer issues – for compliance plate. So I don’t know where us, because of bad policy.” they’re going to sell them. Maybe they can sell them back to the English Dealer they bought In attempting to improve choice for them from.” consumers, the Government had opened a can contribution Dealers make,” he said. of worms and slapped Dealers in the face, Mr Mr Field said consumers would be vulnerable Field said. “The government makes a lot of money from under the new policy. the Australian auto industry. Why would it “Dealers are a community of business people want to divert some of that income to other “A lot of these cars will be bought online, sight who employ 68,000 people in Australia and countries’ governments? unseen. What happens if the car arrives and it’s are the largest skills training provider in the not quite right?” he said. automotive sector. Between them, Dealers “They’ve made the decision on the have $17 billion-worth of facilities around the philosophical view that somehow cars will “How will taxes like LCT be applied to these country. We make a significant investment be cheaper. The industry disputes that, but cars? Will GST be applied to them? Is someone in the country in terms of employment and we do believe it will create lots of problems going to make sure that the emission control training, and the Government seems to for consumers that Dealers will be asked to system is actually working? want to bypass that and, instead, support rectify. And we’re not able to do that, for these Dealerships in London and Tokyo. They re a s on s .” “When we argue this way the Government are clearly undermining the value of the

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currently offered consumers the highest possible level of protection when it comes to purchasing a new motor vehicle through an Australian Dealership, but would not be able to offer the same protection with parallel imports.

“Brands selling in this country make substantial investments in Australia by way of Dealerships, workshops, technology and training to support and service their products.

“This means consumers can be certain their vehicles can be serviced and repaired appropriately, and that recalls are captured so consumers are informed if something needs to be fixed.

“The Government failed to acknowledge that he Government’s decision to allow Senator Xenophon also highlighted the reason Australians who personally import a vehicle parallel imports met with immediate given by the Government for the import rules made for another country may end up with Topposition, not just from Dealers but to be relaxed – the impending closure of local a vehicle that does not meet their needs or also the Federal Chamber of Automotive auto manufacturing – as being inconsistent operate as required in Australian driving Industries (FCAI), the Victorian Automobile with the Government’s recent announcements conditions.” Chamber of Commerce (VACC) and to support a proposal by Punch Corporation Independent Senator for South Australia, Nick to keep making cars in Australia. Mr Weber said the FCAI had, over the Xenophon. past two years, urged the Government to “This move is in the opposite direction and investigate the implications the proposal In a Canberra media conference with FCAI crashing head-on with the Government’s would have on not just Australian consumers, Chief Executive, Tony Weber, AADA CEO, support for reviving auto-making in Australia,” but also on border security and quarantine, Bruce McDonald, and VACC Executive he said. automotive Dealers, service and repair Director, Geoff Gwilym, Senator Xenophon networks, future intelligent transport and urged the Government to scrap the revised “The Government can’t have it both ways on communications systems, and on the policy. this. Slackening the rules on parallel imports automotive brands that invest in the tools, will make it harder for a local car-making training and technicians available in this The decision will allow a flood of imported industry to be revived post-2017.” county to service a modern motor vehicle. vehicles into the country, which Senator Xenophon sees as a dramatic loosening of Mr Weber said the FCAI was “extremely “The industry supports the closer current safeguards in relation to vehicles being disappointed” in the announcement, saying harmonisation of ADRs with international privately imported. the policy decision would mislead consumers. standards, and the industry has been working with the Government on this for a long time. “Anyone who privately imports a vehicle “Not only is the Government taking a ‘buyer But the reality is that there are only a few under these new proposed rules will be beware’ sentiment that would see many standards that are still different and we ask playing ‘unlucky dip’ because they won’t know Australians caught in high-risk situations, with the Government to commit more resources to what they will be getting and the warranties their vehicles being outside established service hasten their completion,” he said. consumers get now won’t apply,” he said. networks, the Government is misleading consumers by telling them a used vehicle with “The best way to continue to deliver a greater “It will also undermine the jobs and Dealer 500km or one that is 12 months old is new,” range of choice in new cars and motorcycles is networks that have cost billions to establish he said. to accelerate the removal of unique regulatory and could end up costing the rest of us more as standards and administration.” those economies of scale are undermined.” Mr Weber said Australian Consumer Law

8 | MARCH 2016 | automotivedealer.com.au POLICY Australian Automotive Dealer Association THE GOVERNMENT’S RATIONALE

he Hon Paul Fletcher MP, Minister for and Enthusiast Vehicles will be Major Projects, Territories and Local revamped, and limits on the TGovernment, said the changes to parallel number of vehicles that can be laws would give consumers more choice in imported by each Registered three main ways: Automotive Workshop will be re m ov e d .” 1. Personal import of new motor vehicles In line with the Australian “With around 30,000 vehicles a year expected Government’s deregulation to be personally imported, most Australians agenda, the changes will will continue to purchase vehicles directly also simplify the pathways imported by manufacturers and sold through for importing non-standard their existing Dealer networks,” Mr Fletcher vehicles used for special said. purposes, such as mining equipment, exhibition vehicles ”These new arrangements, however, will offer and vehicles not permitted for consumers greater choice. If a manufacturer general road use. chooses not to sell a particular model in 3. Removal of $12,000 special duty on Australia, a consumer may now have an option while maintaining high standards for vehicle imported used vehicles to source this model overseas.” safety and environmental performance.” The Government will amend the Customs 2. Improvements to existing schemes for The changes will also simplify the importation Tariff Act 1995 to remove the $12,000 special specialist and non-standard vehicles and certification arrangements for vehicles, to duty on imported used vehicles from 2018. improve efficiency and remove unnecessary “The changes will improve the existing red tape for businesses. “Although this duty is not often applied, it is on arrangements for importing exotic, rare, the statute books, costing more to administer Under the new law there will no longer classic, collectable and special purpose than it raises – and is seen by consumers as be a requirement to physically affix an vehicles. a hurdle to importing secondhand cars even identification plate to vehicles. Instead the in the specific circumstances where such “Today, individuals can import a car or vehicle’s details will be entered on a new imports are permitted. By removing this duty motorcycle under concessional arrangements Register of Approved Vehicles – an online, we will provide more options for Australian if it was manufactured before 1 January 1989. publicly searchable database of new and consumers,” Mr Fletcher said. used vehicles approved for use in Australia. Keeping this fixed date would have steadily Mr Fletcher said this measure would save reduced the scope for importing genuine “Industry will enjoy lower regulatory manufacturers an estimated $18 million per classic cars into the future. The new rule will compliance costs, as these changes to year. allow a vehicle which is at least 25 years old to the Motor Vehicle Standards Act will be imported under these arrangements. align Australian rules more closely with Legislation to implement the changes will be international vehicle standards. This will introduced into Parliament later this year. “For newer vehicles, the Register of Specialist reduce regulatory costs for manufacturers

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Evan Stents of Vehicle Standards. The identification or compliance plate entitles the vehicle to be Lead Partner, registered in Australia and sold. All imported Automotive Industry new vehicles sold commercially in Australia by Group | HWL manufacturers come with this certification and Ebsworth Lawyers the identification or compliance plate.

Vehicles (new or used) without an identification or compliance plate may not n 10 February 2016, the Federal Changes to legislation mean you could currently be imported unless they have a Government announced it will relax buy your next Ferrari overseas. specific ‘Vehicle Import Approval’. A Vehicle the restrictions that apply to all imports O Import Approval can take the form, for of motor vehicles (whether new or used), example, of a Used Import Plate or a Personal including parallel imports, under the Motor restrictions on the parallel import of used Import Plate. Approval can be applied for on motor vehicles. Vehicle Standards Act 1989 (Cth). a case-by-case basis, according to a variety of The announcement comes in the context of eligibility criteria which vary depending on The Federal Government’s consultation the Government’s review of the Motor Vehicles factors such as the age of the vehicle and its use process included two detailed submissions from AADA. In its submissions, AADA has Standards Act, having regard to (among other or the applicant for approval. been opposed to the de-restriction of parallel things) the end to local Australian motor Obtaining approval is not a simple process and imports of used cars, in particular citing the vehicle manufacturing by 2017 and what the quotas can apply to the number of approvals safety and financial risks posed to consumers Government considers to be high current granted under particular eligibility criteria who purchase imported used cars from regulatory compliance costs. (for example, such as under the ‘Low Volume overseas suppliers. The Federal Government has said that relaxing Scheme’ for new vehicles on the register of New cars the restrictions for new motor vehicles, Specialist and Enthusiast Vehicles). along with other legislative reforms, will There is also a special customs duty of $12,000 Despite its stance on the parallel import of save the automotive industry $70 million in that can apply to the import of used vehicles. used cars, the Federal Government announced compliance costs. that it would amend the Motor Vehicle Reforms to existing laws Standards Act to reduce existing restrictions on Parallel imports the parallel import of new motor vehicles. Existing laws have had the practical effect of In the context of motor vehicles, the term heavily restricting the parallel import of both Precise details of the amendments are yet to ‘parallel import’ refers to a vehicle imported new and used motor vehicles that do not have be released and the Government has stated through private means, without the an identification or compliance plate. There that they will be refined through further involvement of an overseas manufacturer’s have been strong policy reasons for those consultation with stakeholders. However, the local distribution and/or Dealer network. restrictions, even though those policies are headline changes are that the Government ‘Parallel imported’ cars are also known as ‘grey now the subject of change. will: imports’. Used cars 1. no longer require imported vehicles to Existing laws carry an identification or compliance In 2015, the Harper Review (an independent Under the current Motor Vehicle Standards plate (instead there will be an online review of Australia’s competition law and Act, it is prohibited to supply new imported register of approved vehicles) policy) recommended that restrictions on vehicles unless they are certified as ‘standard’ – the parallel import of used motor vehicles 2. allow consumers to personally import that is, they comply with all applicable vehicle be scrapped. However in response, on 24 ‘new’ vehicles (without a compliance standards (such as the Australian Design Rules November 2015, the Federal Government plate), on the following conditions: and emissions standards) and have a vehicle announced that, following a consultation identification plate (or ‘compliance plate’) process, it does not intend to reduce existing (a) The vehicle must be imported fitted with the approval of the Administrator

10 | MARCH 2016 | automotivedealer.com.au from a country with ‘comparable Other reforms c. Mobility – vehicles manufactured with standards’ to Australia’s - at present the special features to assist people with a Government has acknowledged that While the Government does not propose to disability. Japan and the United Kingdom (both change the existing eligibility criteria for the right-hand drive markets) meet this personal import of used cars, the proposed d. Rarity – vehicles of which only small standard for cars, and that motorcycles reforms will modify how those criteria are quantities have been produced could also be imported from the USA assessed and approvals given. For example, e. Left-hand-drive – vehicles originally and the EU. under the proposed reforms the Government will agree to the following: manufactured as left-hand-drive of (b) The vehicle must be less than 12 which right-hand-drive versions are months old and have no more than 1. Remove quotas on the number of vehicles not available in any other country. 500km on the odometer, that can be imported by ‘Registered Automotive Workshops’. 3. Adjust the ‘older vehicle’ criterion from (c) A limit of one vehicle every two years vehicles manufactured before 1989 to will apply. 2. Allow imported used vehicles to be vehicles older than 25 years. entered on the Register of Specialist and 3. accelerate the process of harmonising Enthusiast Vehicles if they meet any one Implementation of new laws the Australian Design Rules with of the following five criteria: The Government’s planned reforms to the international standards, and a. Performance – high-performance Motor Vehicles and Standards Act are expected 4. under the Government’s reform plans, vehicles with specifications (e.g. power to be introduced in 2018. ‘ imported new vehicles will undergo to weight ratio) significantly superior 1.Parallel Imports - As per our previous contributions inspection by an independent third party. to mainstream vehicles in Australia - with Evan’s portrait and title ‘Lead Partner, Some differences in the ‘comparable Automotive Industry Group | HWL Ebsworth standards’ are proposed to be addressed b. Environmental – vehicles that offer Lawyers (see page 24 of the December edition for an through modification requirements environmental performance (e.g. example); and please also add the following text at (for example, in the context of child emissions of carbon dioxide per km) the foot of the article: restraints). significantly superior to mainstream vehicles in Australia This article was written by Evan Stents - Lead Partner and Christian Teese - Associate, Automotive Industry Group | HWL Ebsworth Lawyers.

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FEDERAL GOVERNMENT BACKS PLAN TO SAVE HOLDEN PLANT

ederal Industry Minister, Christopher He said if Mr Dumarey was successful in “A lot rests with the decisions that General Pyne, has backed a Belgian businessman’s buying the plant from Holden and produced Motors make in Detroit and that’s why I’ll be Fplan to keep Holden’s South Australian enough cars, he would be able to access money writing to the chairman of General Motors in manufacturing plant open past its current from the Federal Government’s Automotive Detroit, to the senior executive members there, planned closing date in 2017. Transformation Scheme until 2021. encouraging them to have a very open mind to Punch Corporation’s proposal. Guido Dumarey, head of Punch International, “As the Industry Minister, my priority is to wants to keep building the Holden create jobs and growth, whether it is in South “I think they’re waiting to see a serious Commodore and has asked Australian Australia or whether it is anywhere else in the business case. Multi-national corporations are governments for support. country,” Mr Pyne said. quite bureaucratic and I imagine they have quite serious processes to go through, but It is understood Mr Dumarey is seeking “I’m hopeful, but I’m not getting over-excited there are a couple of big positives for General substantial assistance via the $800 million because I don’t want the workers at Holden to Motors. One is if they can seriously pull have two sets of periods of grieving.” Automotive Transformation Scheme. Mr Pyne off the keeping open of the plant at Holden and work with Punch, it’ll do a lot for their said he was behind the plan. Mr Dumarey successfully turned a General reputation in Australia. And, of course, if Motors facility in France from a failing “Everybody in the Government would like Punch Corporation takes over the remediation business into a profitable driveline component of the site at Holden it’ll save them a great deal there to be a car manufacturing business in constructor, and Mr Pyne told ‘Today Tonight’ of money. Australia,” he told ABC Radio. he believes the Belgian can do something similar here. “I’ve engaged closely with him and with “Having met with him a couple of times, I’m of the view that he can bring it off with General Motors and given him a letter “Mr Dumarey does have a serious proposal, government support and, of course, with the of support from the Commonwealth representing Punch Corporation. He’s done acquiescence of General Motors who are the Government indicating we will do what we it before with General Motors at Strasbourg ones who are selling the plant.” can to help him realise his goal,” Mr Pyne said. in Europe and I strongly support the efforts he’s putting into working with the South Mr Dumarey has met with South Australian Mr Pyne said Mr Dumarey had a “track Australian, Victorian and Commonwealth and federal politicians to enlist backing for record” of turning factories around. Governments,” Mr Pyne said.

12 | MARCH 2016 | automotivedealer.com.au his proposal. He is also attempting to obtain “There’s a growing awareness that the decision there as a willing partner, obviously that ends Holden’s rear-wheel-drive architecture to close the car industry was beginning to look it .” intellectual property for the Commodore, like a pretty big mistake,” Mr Weatherill said. as well as the facilities to keep building it. In Mr Weatherill is meeting GM executives in early February he met with Prime Minister, “The fact that we’ve got somebody who thinks Detroit this month, in a bid to get them to sign Malcolm Turnbull, who, Mr Pyne said, was he can continue to make the plant a car plant is off on the deal. “very encouraging” of the plan. a very interesting development, I think. A Holden spokesman was coy on the subject, However, Mr Turnbull said the plan was still “With the low Australian dollar and the saying only that Holden and GM would assess a long shot and warned South Australians circumstances that pertain now, if the decision all options if a party was interested in one of against getting their hopes up. had been made in this environment I think a their sites. very different decision would have been made.” “It’s very encouraging, but I don’t think Every car maker has seen fit to pull out of we want to get ahead of ourselves. They’ve Mr Weatherill cautiously endorsed the plan Australian manufacturing. AADA hopes Mr obviously got to have talks with General but, like Mr Pyne, was careful not to get too Dumarey can arrest the decline. Motors. There’s a lot of work that would need excited. to be done,” he said on 5AA radio. “If this [Mr Dumarey’s plan] stacks up and South Australian Premier, Jay Weatherill, it’s the best use of the property from our confirmed he had met Mr Dumarey more perspective, we will certainty get behind it,” than once. He said that although several he said. proposals have been put forward for use of the “We’ve got to assess how realistic it is. The Elizabeth site, Mr Dumarey’s would keep the truth is, if an idea is just pie in the sky, if an Australian automotive manufacturing industry idea also requires a big Federal Government alive. FEDERAL GOVERNMENT BACKS buy-in and if the Federal Government isn’t PLAN TO SAVE HOLDEN PLANT FRANCHISE DEALERS LET ME HELP YOU SELL MORE VEHICLES John Hughes

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automotivedealer.com.au | MARCH 2016 | 13 POLICY Australian Automotive Dealer Association QLD COMMITTEE RECOMMENDS UNIFORM LEMON LAWS

Queensland report into proposed (OFT) suggests that that while complaints Furthermore, the Committee recommended ‘lemon laws’ has recommended about motor vehicles are consistently one of the government consider appointing Aamending the Australian Consumer the five subjects of all complaints lodged by independent assessors, with investigative Law to establish nationally consistent laws consumers with the OFT over the last four powers and specialised knowledge in relation applicable to new ‘lemon’ motor vehicles. years, complaints about ‘lemons’ represent less to motor vehicle disputes, to deal with the than one percent of those1 . issues of how consumers prove that they meet Late last year the Legal Affairs and the ‘lemon’ motor vehicle threshold criteria. Community Safety Committee presented The Committee noted that while there was This would be an alternative to consumers its report, “Lemon Laws – Inquiry into insufficient evidence presented to enable initiating Queensland Civil and Administrative consumer protections and remedies for buyers it to draw a conclusion that ‘lemons’ are a Tribunal (QCAT) and/or court proceedings. of new motor vehicles”, to the Queensland prevalent issue, what is very clear is that, where Parliament.” a consumer has purchased what they perceive Additionally, the Committee made is a lemon, it is of great individual significance recommendations that, for matters involving The report is in response to the Queensland to that individual, with significant health and new motor vehicles with major defects, Parliament’s request to enquire into and financial costs. Further, the Committee found the government change the Queensland report on whether there is a need to improve there is risk that cars perceived to be lemons Civil and Administrative Tribunal (QCAT) the consumer protections and remedies for are often on-sold, and where the defects are a jurisdictional limit of $25,000. Government buyers of new motor vehicles with numerous, safety issue, unsuspecting purchasers of those Committee members recommend the limit be severe defects that reoccur despite multiple vehicles and other road users could be at risk. removed, so no cap applies. Non-government repair attempts or where defects have caused Committee members recommend the limit be a new motor vehicle to be out of service for a In its final report, the Committee made increased to $40,000. prolonged period of time. Such a vehicle has nine recommendations. Primarily the been referred to as a ‘lemon’. Commonwealth Government should consider Cooling-off periods for new motor vehicle the need for a national set of ‘lemon’ laws purchases are also to be reviewed, with The report followed an extensive consultation in the Australia Consumer Law Review to consideration as to whether such periods period in which AADA provided a submission be conducted in 2016. This would create a should be unable to be waived by the to the Committee on 8 October 2015. This nationally consistent approach to ‘lemon’ laws. purchaser and whether disadvantaged persons submission is available to read on the AADA should receive the benefit of a longer period. As part of this nationally consistent ‘lemon’ website. Additionally, AADA CEO, Bruce law, clear and practical definitions and Finally, the Committee recommended the McDonald, presented to the Committee at a provisions applicable to new ‘lemon’ motor State and Commonwealth Governments Parliamentary hearing on 28 October. vehicles must be developed in respect to implement business and consumer awareness Data made available to the Committee mandatory time and repair limits, clarity programs, with the intention of educating indicated that there were 118 responses to the as to when a supplier/manufacturer must industry and consumers on the intent of the Government’s 2015 invitation to consumers repair, refund or replace a motor vehicle and Australian Consumer Law, including the to share their ‘lemon experiences’. Data about an adequate definition of what constitutes a consumer guarantees. complaints made to the Office of Fair Trading ‘lemon’ motor vehicle.

14 | MARCH 2016 | automotivedealer.com.au that the committee’s report may inform the - adequate definitions of ‘acceptable Australian Consumer Law Review 2016. quality’ and ‘fit for purpose’

Recommendation 3: - clarity as to the distinction between major and minor defects, and The committee recommends that the government appropriately amend existing - clarity as to the distinction between Queensland legislation to ensure effective a ‘lemon’ and generic design implementation of the committee’s manufacturing defects (requiring recommendations included in this report, general recall) or serious design safety but do so as part of any national approach defects (requiring urgent attention). to ‘lemon’ laws for new motor vehicles in Australia. Recommendation 6:

Recommendation 4: The committee recommends the Government consider appointing independent assessors, The committee recommends that the with investigative powers and specialised appropriate mechanism to ensure a national knowledge in relation to motor vehicle approach to changes in existing ‘lemon’ disputes, to deal with the issues of how motor vehicle laws is to amend the Australian consumers prove that they meet the ‘lemon’ Consumer Law such that it specifically sets out motor vehicle threshold criteria (when nationally consistent laws applicable to new established – see Recommendation 5), as an ‘lemon’ motor vehicles. alternative to consumers initiating Queensland Civil and Administrative Tribunal (QCAT) Recommendation 5: and/or court proceedings. The full list of recommendations The committee recommends the Recommendation 7: Recommendation 1: incorporation of clear and practical definitions and provisions into any nationally consistent The committee recommends the The committee recommends the government laws applicable to new ‘lemon’ motor vehicles, government change the Queensland Civil consider the contents of the committee’s including: and Administrative Tribunal (QCAT) report, particularly the committee’s jurisdictional limit of $25,000, for matters recommendations, as part of the government’s • mandatory time and repair limits, such as involving new motor vehicles with major consideration of issues relating to, and its imposing limits on the number of times defects. Government committee members participation in, the Australian Consumer Law a supplier/manufacturer can attempt to recommend the limit be removed, so no cap Review 2016. repair a defect in a motor vehicle and the applies. Non-government committee members number of days the vehicle can be ‘off the recommend the limit be increased to $40,000. Recommendation 2: road’, before a buyer must be offered a The committee recommends the government refund or replacement Recommendation 8: bring the committee’s report, particularly • clarity as to when a supplier/ The committee recommends the State and the committee’s recommendations, to the manufacturer must repair, refund or Commonwealth Governments implement attention of Consumer Affairs Australia and replace a motor vehicle business and consumer awareness programs, New Zealand (CAANZ) and the government with the intention of educating industry and bodies, State and Territory regulators and • an adequate definition of what constitutes consumers on the intent of the Australian other entities comprising CAANZ, such a ‘lemon’ motor vehicle, such as – Consumer Law, including the consumer guarantees.

Recommendation 9:

The committee recommends the Government review cooling-off periods for new motor vehicle purchases, with consideration as to whether such periods should be unable to be waived by the purchaser and whether disadvantaged persons should receive the benefit of a longer period.

1JAG, Analysis of OFT data, Material prepared for the Legal Affairs and Community Safety Committee, September 2015, p4

automotivedealer.com.au | MARCH 2016 | 15 POLICY Australian Automotive Dealer Association AADA ADVOCATES IN WA MOTOR VEHICLE ACTS REVIEW

ADA has highlighted shortcomings AADA’s submission advocated for similar in Western Australian legislation provisions contained in the Motor Vehicles Athat leaves Dealers vulnerable to Dealers and Repairers Act 2013 (NSW), that unfair contract dealings by motor vehicle prohibits unfair contracts and unjust conduct manufacturers. in New South Wales between Dealers and motor vehicle manufacturers. Following the initial review in August 2013, the WA Government has commenced the AADA asked the Government of Western Stage Two review of the Motor Vehicle Dealers Australia to consider and support amendments Act 1973 (MVDA Act) and Motor Vehicle to regulate the Dealer and distributor business to incorporate into the MVDA Act legislation Repairers Act 2003 (MVRA Act). relationship in circumstances where there that provides similar provisions to those are examples of unfair contracts and unjust recently enacted in the Motor Vehicles Dealers The Government commissioned the conduct on WA Dealers, and where there is and Repairers Act 2013 (NSW) which prohibit Department of Commerce (Consumer an absence of adequate regulatory measures in unfair contracts and unjust conduct. Without Protection Division) to conduct the review the Franchising Code of Conduct or in the new making these provisions, the 150 WA new and issued a Regulatory Impact Statement for unfair contracts legislation recently enacted at motor vehicle Dealers would continue to face consultation. The policy objective is to develop the Federal level. a significant power imbalance in contract and options for reform that seek to balance the franchisee negotiations with their respective AADA argued the adoption of similar competing interests of motor vehicle Dealers, manufacturers. motor vehicle repairers and consumers, provisions into the MVDA Act would address and which provide adequate protections for the imbalance of power between Dealers and The final stage of the MVDA will include consumers while ensuring that motor industry manufacturers and lead to improved and fairer the release of a Decision Regulatory Impact business relationships. representatives are not overburdened with Statement addressing the outcome of consultation with stakeholders and making unnecessary regulation and red tape. In addition to the submission, AADA CEO, recommendations for reform. The Decision Bruce McDonald, wrote to the WA Attorney AADA lodged a submission to the review Regulatory Impact Statement will analyse General and Minister for Commerce, the Hon panel on 18 December 2015, drawing attention the impacts of the various options and Michael Mischin MLC, and Small Business to a major shortcoming in the Acts concerning recommend preferred options for reform. Commissioner, David Fraser, to draw their the relationship between car Dealers in WA attention to an opportunity to address the and motor vehicle manufacturers in respect AADA will maintain its presence throughout imbalance of power issues. He asked them to this process and continue to advocate on of the protection for Dealers against unfair give serious consideration to the opportunity contract dealings by manufacturers. behalf of WA’s new car Dealers.

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16 | MARCH 2016 | automotivedealer.com.au POLICY Australian Automotive Dealer Association SENATE COMMITTEE REJECTS CONTROVERSIAL GREENS BILL

he Environment and Communications the lack of consultation Legislation Committee of the Senate has by the promoters of the Trecommended to the Senate that it not Bill with the automotive pass the Motor Vehicle Standards (Cheaper industry in Australia. This Transport) Bill 2014. oversight was bought to the committee’s attention First introduced to the Senate by former leader in AADA’s submission. of the Australian Greens, Senator Christine AADA referred to the poor Milne, in July 2014, the policy rationale of drafting of the Bill, which the Bill was “to improve the fuel efficiency would, in the definition of of new cars purchased in Australia to reduce a motor vehicle, include costs to motorists, reduce emissions into our categories for motor cycles atmosphere, promote strong trade ties, reduce and mopeds. dependence on imported oil and provide future jobs for the automotive parts and AADA also advised the committee that the services industry”. imposition of emissions The Bill aimed to achieve this by setting standards in Australia by direct reference to As part of the submission, AADA carbon emissions standards for new passenger EU or US standards should be treated with recommended the Federal Government vehicles and light commercial vehicles from caution, as the methodology and assumptions adopt a whole-of-government approach 2017 (phased-in) to align with the existing EU on which those standards are based are specific in addressing the issue of motor vehicle 2020 standard by 2023. The commencement to those countries. emissions. of the vehicle carbon emissions standard was AADA’s concerns with the Bill and those of intended to coincide with the dismantling The Government has announced the FCAI have been recognised and supported by establishment of a Ministerial Forum to of automotive vehicle manufacturing in the committee. The committee made a single examine a range of issues, including the Australia. recommendation that the Senate not pass the implementation of Euro 6, fuel quality AADA lodged a submission to the committee Motor Vehicle Standards (Cheaper Transport) standards, fuel efficiency measures (CO2) Bill 2014. The decision was not unanimous, on 18 September 2015 that raised a number of for light vehicles and emission testing however, with Committee Member and concerns with the Bill. (The submission can be arrangements. Green’s Senator for Queensland, Larissa accessed on the AADA website under ‘Policy Waters, producing a Dissenting Report in AADA CEO, Bruce McDonald, attended the Submissions’.) AADA believes the policy support of the Bill. Without the committee’s first meeting in Sydney on 7 December 2015. rationale of the Bill was broad, ambitious, support, AADA is confident the Bill will not ambiguous and contradictory. A concern was pass the Senate.

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he Australian retail automotive industry Year for Tynan Motors Mercedes-Benz. has lost one of its giants with the death of TMichael Tynan OAM after a long battle Mr Tynan was integral in the formation of with cancer. the new AADA. It was his comprehensive 2010 Dealer Survey that indicated change was Terry Keating (Chairman) and the Board of required to satisfy Dealer needs. His tireless AADA expresses sincere condolences to the efforts helped make the new AADA a reality Tynan family. and we are grateful for the time he spent serving on the new Board. Michael Tynan spent half a century in the retail automotive industry, beginning in Mr Tynan was active in his community, 1966 when he established his own Mazda serving on the Sutherland Shire Council for Dealership at Sutherland in the south of 18 years, including a term as Mayor. He served Sydney. Over the next five decades he grew the on the Board of Calvary Health Care Sydney, business to the point where, when he retired in then the National Board of LCM Health Care, 2014, Tynan Motors sold 14 different brands for a total of 28 years until 2007. He remained of vehicles at seven locations and employed a strong supporter of the St George and nearly 300 staff. Sutherland Medical Research Foundation and the St George Hospital. He was also a board As with so many Dealers, Mr Tynan made member of the NRMA. Queen’s Medal for Local Government. his a family business, earning Tynan Motors Michael Tynan was a true leader of our a place in the Family Business Australia Hall Mr Tynan was awarded the OAM (Medal of the Order of Australia) for his contributions to industry and of our society. He will be sorely of Fame. Other awards included the Motor missed. Traders Association New Car Dealer of the the community and was also recognised with a Want to generate more leads and increase sales online?

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managed paid search | search engine optimisation | responsive website platform | social media & reputation management FEATURES Australian Automotive Dealer Association WANT MORE AFFORDABLE CARS? EASY – TAX THEM LESS

ne of the reasons behind the Federal Government’s decision to allow the Oparallel importation of near-new vehicles is the belief that cars in Australia are too expensive. Retail automotive industry leaders argue that the Government could help lower prices by reducing the amount it takes in tax on every vehicle sold.

We’ve previously covered what AADA believes is an unfair Luxury Car Tax, but as former AADA Chairman, Ian Field, points out, even for the average vehicle the Government makes “It’s all very well to say, as the Government FCAI chief executive, Tony Weber, agrees. more money than manufacturers – and far seems to be, that cars are too dear. Well they’re too bloody dear because the Government “If the Government is so concerned about more than Dealers. takes 15 percent tax.” car affordability, it should look at the taxes For example, Toyota Australia last year made and other government charges that make up From March of this year the Government around 20 percent of the price of new cars in $544 million profit from $10.2 billion turnover. will make public the tax returns of private Australia,” he said. “Do the sums; you’ll find that’s about 5.3%. companies with turnover in excess of $200 “Fixing those tax arrangements, including the That’s the most profitable car operation in the million. poorly-designed and ‘absurd’ Luxury Car Tax, country and the biggest, the market leader in “Thathas implications for our industry is a better and more targeted way of addressing Australia,” Mr Field said. because there are a lot of our members who car affordability than a change that will only would fall into that $200 million-plus category. “Theymade 5.3%. The Government took 10 ultimately hurt consumers.” It might be very interesting to the public to percent in GST! So the Government took see how little car Dealers make in the overall When you consider the total revenue the nearly double what they made, just in GST. scheme of things,” Mr Field said. motor industry in its entirety delivers to Then there are registration fees and stamp governments in Australia, it is a significant duties to State Governments, and Luxury “TheGovernment makes a hell of a lot more amount of income. GST, stamp duties on Car Tax (which raises about $500 million money out of cars than we do. It’s all very purchases, registration fees, company taxes, annually). When you add up all the taxes well to say car Dealers are making too much payroll taxes – Australian Governments do that Governments take, it’s about 15 percent. money, but when Toyota makes 5.3 percent very well out of the auto industry – better than Fifteen percent they make, and Toyota made and the Government makes 15 percent, it’s any Dealer or manufacturer. 5.3 percent. easily fixed. Just charge less tax.”

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To find out more, contact the Business Account Manager on 9790 2680. automotivedealer.com.au | MARCH 2016 | 19 FEATURES Australian Automotive Dealer Association DEALER PROFITABILITY AT 1.5%

he Deloitte Dealer Profitability Report Sales rose 4.5% from October figures but respectively. for November 2015 shows that the profitability was down 0.3%. The Department Taverage Australian Dealer profitability, as Selling Gross for new and used vehicles fell Western Australia measured by net profit as a percentage of sales by 6.0% and 6.4% respectively and the F&I NP%S for the average WA Dealer was 0.3 % (NP%S), was 1.5% in November 2015. Department Selling Gross dropped 2.8%. in November, down 0.1% from October. Used The result was 0.2 percentage points down on New South Wales/Australian Capital vehicle sales were up 13% but new vehicle sales the October result but 0.2 percentage points up Territory fell 2.0%. New vehicle gross was down 12.7% and the selling gross for new vehicles dropped from November 2014. The average NSW/ACT Dealer NP%S was 41.7%. South Australia/Northern Territory 1.7% in November, a drop of 0.2 percentage points from October. Used vehicle sales fell by Segments SA and the NT led the way, with Dealer 0.8%, parts sales by 1.2% and service sales by Each of the market segments experienced profitability for the average SA/NT dealer at 2.7%. The used vehicle selling gross dropped 6.3%. declines in NP%S for November when 3.0% in November. The state group continued compared with October. The Luxury segment its strong performance in new vehicles, Victoria/Tasmania was the most profitable, with 1.8%; the prestige improving New Vehicle Department Selling segment had a profitability of 1.1% and the Gross by 33.1% as compared to October. VIC/TAS had a NP%S of 0.9% in November, volume segment had a profitability of 1.6%. half its YTD value of 1.8%. The Department Queensland Selling gross for new vehicles, used vehicles and service fell by 8.7%, 7.7% and 6.3% QLD had a NP%S of 1.8% for November. FEATURES Australian Automotive Dealer Association THE BATTLE FOR VEHICLE- GENERATED DATA

e live in the Information Age. Anyone with a passing association Wwith marketing will be aware of the ‘D-word’: data. The battle for who owns the data generated by vehicles shapes as one of the most significant in the automotive industry.

Independent service providers and repairers have lobbied the federal government hard to legislate on the matter. The Australian Automotive Aftermarket Association (AAAA) pushed for a Federal Government inquiry into data sharing between manufacturers and independent repairers and aftermarket suppliers. Their concern is obviously that manufacturers will not share vital vehicle data, locking independents out of service/repair opportunities. repairs. While it is not currently preventing If manufacturers and Dealers continue to The Government put it back onto the industry, competition in this market, policy-makers guard their data, the Australian Competition asking it to examine the issue of who owns the should closely monitor the ease with which and Consumer Commission (ACCC) could data generated by vehicles and who should vehicle repairers can access such information potentially become involved to determine have access to it. and be prepared to act if necessary.” whether that behaviour is anti-competitive.

Stakeholders, including the Federal Chamber AADA board member (and former chairman), What is data? of Automotive Industries (FCAI) and the Ian Field, says service and repair data is already In marketing and customer retention terms, AAAA, negotiated a Data Sharing Code available. it is information about your customer base: of Conduct over 18 months, but when “That’s never hidden – that’s not what this names, addresses, phone numbers, email an agreement could not be reached the discussion is about. We’re talking about data addresses, how often they buy a car, whether FCAI released its own voluntary code. This the vehicle collects on usage,” he said. they buy new or used and how frequently they displeased the aftermarket association, have their car serviced. which called for the government to impose a “Those who would use this discussion as mandatory code. a smokescreen to pretend that data is not Modern vehicles now generate information available, they’re talking about privacy data, not just about the car and its various parts, but In November 2012 the Commonwealth not technical service and repair information, also how the vehicle is used. Data can tell you, Consumer Affairs Advisory Council reported which is readily available for those who are for instance, that a family of four takes long the following regarding vehicle data: prepared to pay for it.” road trips and they have had their car six years. Your sales team could use this information to “Motor vehicle designs have become As for other data regarding how a vehicle is increasingly complex, driven by rapid try to sell them the latest people-mover, with used, Mr Field says there are issues of privacy back of seat screens and a few Pixar DVDs technological change and innovation. As a to be considered, as well as considerations the thrown in. result, automotive repairers have become auto industry has never before faced. increasingly reliant on technical information Automotive manufacturers have begun to and diagnostic systems. Not all information “There are privacy issues; there are issues reposition themselves as ‘mobility companies’, relevant to automotive repair is shared in about whether the factories should know as cars become more and more connected to an unrestricted manner. Some stakeholders where every car’s been. I don’t know how we the internet. have suggested that this may limit the ability answer those questions, quite honestly. This of independent repairers to compete with is the new world we live in, this 21st-century The rise of the internet has allowed companies dealerships. world, and we have not yet worked out what to access even more information about the rules should be.” consumers: their hobbies, interests, family, “The report has found that the need to access where they go (via GPS) and more. specialised repair information has the potential Parties are due to meet again in March or to become a barrier to entry in the market for April to see if they can agree to a resolution. More central to this debate is the growing set FEATURES Australian Automotive Dealer Association

of data generated by vehicles themselves. On- about organisational integration, change “Already today, a large majority of consumers board diagnostic computers report on engine and evolution as it is about the underlying very consciously share their personal data with performance and parts wear, communicating technology,” the report said. their smartphone software manufacturer; only this information to a central database. a quarter of customers categorically refuse to So who owns the data? let OEMs use their driving data,” the report On-board diagnostic ports (OBDs) were stated. originally installed and designed to deliver That is the question no one has yet resolved, data exclusively to Dealers and manufacturers, and one that needs answering sooner rather “That said, consumer privacy will remain but independents worked out how to attach than later. a focal point of interest for consumers transmitters to OBD ports in order to send themselves as well as most likely for regulators. The amount of data generated by vehicles information to a central database. Thus, car manufacturers and suppliers should is only going to rise with the development continue to take this issue very seriously and of autonomous, self-driving vehicles and To counter this, manufacturers could bypass offer the appropriate safeguards.” OBDs and use wireless technology to deliver technology that allows cars to ‘know’ where data directly to their own databases, cutting other traffic is on the road. What does it all mean? third parties out altogether. The car could Self-driving cars are inevitable but, as with the tell the database when it needs a service, Another report, compiled by executive search adoption of any new technology, there will what parts need replacing, when wheels firm Russell Reynolds Associates, argues that be bugs and issues that need to be ironed out. need alignment, tyres need rotating – pretty these technological advances will force auto One of the major potential stumbling blocks much everything to do with the operation industry leaders “to evolve into tomorrow’s is when one of these vehicles is involved in an and maintenance of the vehicle. This is what mobility leaders”. accident. Vehicle data might very well be able the AAAA fears and why it wanted the to tell us exactly what caused the accident, but “To build new skills and perspectives quickly, Government to legislate. who owns that data? Is it the car’s owner, the we recommend hiring from industries Studies show that the collection and use of Dealer or the manufacturer? Who will be held that already have undergone a significant data is the next big paradigm shift in how responsible – the maker of the part that caused disruption, such as the mobile phone industry,” business of all kinds is conducted. the accident or the vehicle manufacturer? Will the report said. drivers be absolved of any blame or will they Capgemini Consultants found that: have a responsibility to maintain some control The future is here over their vehicles? Vehicle data shapes as The Tesla Model S already communicates in • 64% of companies believe that big data is crucial evidence in lawsuits. changing traditional business boundaries real time with Tesla headquarters. Its systems Then there is the question of leasing: who are wirelessly updated frequently and Teslas • 58% expect to face increased competition owns the data in that case? can also communicate with the company’s from start-ups enabled by data, and Supercharger network. A recent study by McKinsey & Co., titled • 24% of companies report disruption “Competing for the connected customer – This issue is still in its infancy but, as you can from new competitors moving into their perspectives on the opportunities created by see, it has enormous potential ramifications for industry. car connectivity and automation,” suggests Dealers. Stay tuned. drivers are currently unconcerned about data “Profiting from big data is at least as much ownership. MORE MANUFACTURING JOBS TO GO

p to 140 workers at Adelaide auto “While any reduction in the number of roles component manufacturer SMR at the site is regrettable, the reality is the UAutomotive will lose their jobs as decision is unavoidable and has been openly the company restructures in anticipation of communicated to our staff and contractors,” Holden’s exit from the local manufacturing he said. industry in 2017. “A s a company we must evolve or cease to Thejob losses – 30 full-time and 110 exist. It’s as simple as that.” contractors – account for a quarter of SMRA’s 560-strong workforce. The cuts will take Therestructure will allow SMRA to remain effect in March and were also influenced by viable. The company currently manufactures the completion of a contract to manufacture exterior mirrors, lighting products and interior mirrors for Ford in the USA. scale, conventional products to lower-volume components for the automotive industry niche products, with an emphasis on new but will attempt to diversify by pursuing SMRA general manager, John Scott, says the technology and innovation. opportunities in non-automotive markets, company will switch its focus from large- largely medical at this point. FEATURES Australian Automotive Dealer Association YAZAKI CORPORATION IN BREACH OF CARTEL LAWS

he Federal Court recently ruled that 2010. Even though the conduct took place in 1. cartel conduct was an enforcement Yazaki Corporation, the parent company Japan, the Court found that it was subject to priority area for the ACCC, and Tof Australian Arrow Pty Ltd, had Australian law on the basis that Yazaki was engaged in collusion with a competitor in the carrying on a business in Australia. 2. the ACCC had established a dedicated supply of wiring harnesses to Toyota Motor group exclusively responsible for The Court will now set a date for a hearing to investigating cartel conduct and had Corporation in Australia. determine what orders should be made as a around 12 ‘in-depth’ investigations on Yazaki, based in Japan, supplies to Toyota result of Yazaki’s conduct. foot. electrical wiring harnesses used in the The case against Yazaki was brought by the This article was written by Christian Teese - Associate, manufacture of the Toyota Camry. The Court Australian Competition and Consumer Automotive Industry Group | HWL Ebsworth found that in 2003 and 2008 Yazaki made Commission (ACCC), which has the power Lawyers. arrangements with a competitor that included to prosecute breaches of the Act. In 2015, the coordination of quotes to Toyota, in Chairman of the ACCC, Rod Sims, announced breach of the Competition and Consumer Act that:

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*Terms and conditions apply, visit www.datamotive.com.au/promotions/23k for full competition details. FEATURES Australian Automotive Dealer Association 2016 KPMG AUTOMOTIVE EXECUTIVE SURVEY - FROM A PRODUCT CENTRIC WORLD TO A SERVICE-DRIVEN DIGITAL UNIVERSE

Aaron Street A major business model disruption is 7. Does using the auto-pilot mean losing anticipated to be extremely likely for almost sight? Partner, 10 times more survey respondents then last Private Enterprise The majority of survey respondents see self- year. More than 80% are convinced that KPMG driving features as an absolute purchasing connectivity and digitalisation will strongly criteria, or at least expect it to become more disrupt the auto industry by the end of this important by 2030. Survey results suggest that decade. PMG recently released its 17th annual in a world of autonomous driving, classical KPMG Global Automotive Executive 3. The centre of gravity of the customer differentiating factors will diminish in favour KSurvey, which sought feedback from relationship will shift of total cost of ownership (TCO), questioning over 800 senior executives from the world’s the sustainability of the traditional automotive This year, respondents are far less confident leading automotive companies on topics such business model. that traditional auto companies will be able as key trends, business model disruption, data to dominate the customer relationship in 8. The auto industry is in a clock speed ownership, technological challenges, new the connected car. Last year, two-thirds dilemma products and who will be the frontrunners in still believed auto companies would see off The era of the one car product development the auto industry. competition in this area from ICT sector third cycle is over. To defend their position against parties. This year’s survey findings reveal that third parties and respond to real-time executives’ mindsets have shifted significantly 4. Business models will be circling in customer needs, auto companies will need to and they now see definite disruption ahead. different orbits manage different clock speeds for innovation, Nothing will stay the way it is and the development processes and corporate culture traditional automotive business model is Connectivity will pave the way for an entirely all at once. changing swiftly. new data and service-driven business model for those traditional auto companies able to 9. The industry is not living in a vacuum KPMG Automotive Partner, Aaron Street, retain a direct customer relationship. But by no More than 80% of respondents see regulation says that ‘connectivity and digitalisation’ has means all survey respondents are convinced as having high or very high impact on the auto become the #1 key trend dominating auto of this; already every fifth respondent believes industry. The recent ‘diesel-gate’ scandal shows executives’ strategic agenda until 2025. It has vehicle manufacturers could also turn that the technology challenges putting pressure finally outpaced growth in emerging markets into mere contract manufacturers for ICT on the auto sector regarding more eco-friendly and alternative drive-train technologies, which companies. alternative drive-trains have not become any were the key trends in past years. 5. Data is the fuel that informational smaller. It is now clear that the auto industry needs to engineering ignites 10. Conquering new spheres remains a focus shift its focus towards customer needs rather Although strong informational engineering than traditionally product and technology-led The presence in emerging markets is more capabilities and data-driven mindset will be a internal concerns. than fundamental to the success of global auto decisive factor to compete with new entrants at companies. China has not only become the the customer interface, most respondents said The 10 key themes arising from the KPMG most important market volume-wise, but for the usage of data in all corporate functions is survey are: the majority of respondents China is now also currently at a very early state, at best. the No 1 place to pilot new innovations and 1. Connectivity and digitalisation is sky launch new products. rocketing 6. The race to the planet of data has not been decided What it is clear from the KPMG survey is that Auto executives’ mindset has shifted year- challenging but exciting times are ahead for on-year. Connectivity and digitalisation have Most respondents believe nobody but the the automotive industry. finally outpaced growth in emerging markets driver owns the data generated in or by a car. While some executives still think that data is at and alternative drive-train technologies as For a complimentary copy of the 2016 KPMG their companies’ free disposal, customers think the key trend dominating executives’ strategic Auto Executive Survey, please contact KPMG differently. They will choose the party they agenda until 2025. Partner, Aaron Street, on 07 5577 7545 or trust the most and that offers the best benefits [email protected]. 2. The countdown for disruption has already in return, instead of just giving their valuable started data away free. FEATURES Australian Automotive Dealer Association ANOTHER MASSIVE AIR BAG RECALL

ot on the heels of the Takata air bags Accord, Dodge Journey and recall comes another one, this time some Mercedes-Benz C-Class Hinvolving Continental Automotive models are potentially among Systems (CAS) and affecting up to five million them. vehicles worldwide. CAS will reveal further CAS has filed documents with the US manufacturers involved in the recalls in a 2008 when a malfunctioning air bag control Government declaring that its air bag control later submission to the US National Highway unit was removed from a Mercedes vehicle. In Traffic Safety Administration (NHTSA). computers can fail if exposed to moisture. The early 2011, CAS learnt of two unintentional air bags could either fail to inflate in a crash or air bag deployments in Mercedes and Fiat Last issue we covered the recall of Takata Corp Chrysler vehicles. accidentally deploy without a crash. air bag inflators, which have caused at least 11 deaths and 139 injuries worldwide. They can US safety regulators began investigating last CAS will notify car makers, leading to a recall deploy with too much force, exploding a metal year after Honda reported two malfunctions in of cars dating as far back as 2006 models. canister and firing shrapnel into the passenger crashes involving 2008 Accords. compartment. It is not yet clear which makes and models will CAS says more than 600 parts have been be affected in Australia, although the Honda CAS says its problem first arose in January returned due to the problem.

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Vinesh George not conform to the Australian Consumer Company Secretary Laws then it is unfair and Legal Counsel, to penalise the Dealer, AADA who still has to perform the service or repairs under statutory warranty (consumer he recent Federal Court declarations guarantees). in legal proceedings, instituted by the TACCC against Coles Supermarkets Often, technical Australia Pty Ltd (Coles), that it had engaged non-compliances such in unconscionable conduct, has application as a failure to keep to the automotive industry and, in particular, paperwork or failure to during warranty audits. follow a correct process also result in the The Federal Court declarations have been distributor requesting a rebate of the warranty also demand responses from suppliers in described by the ACCC Chairman as a payment made for that particular claim. The an unreasonable timeframe. The Court very significant outcome for the business distributor then ‘extrapolates’ the technical declared the conduct as unconscionable community in general, as it is one of the non-compliance to determine a total amount in circumstances where Coles had greater first findings of unconscionable conduct in to be repaid. bargaining power. a business-to-business context under the In the Coles legal proceedings, the judge Australian Consumer Laws (ACL). Perhaps being repaid for a technical non- compliance is fair, but what if you are new stated: The unconscionable conduct provisions are to the brand or if no adequate training or “Coles’ misconduct was serious, deliberate found in Section 21 of the ACL and read: resources are provided that set out how to comply? Does it remain fair to penalise the and repeated. Coles misused its bargaining (1) A person must not, in trade or commerce, Dealer? On occasion I have even heard of power. Coles treated its suppliers in a in connection with: Dealers having to pay back more than they manner not consistent with acceptable received for the warranty claim, due to changes business and social standards which apply (a) The supply or possible supply of goods or in the cost of parts or currency fluctuations. to commercial dealings. Coles demanded services to a person (other than a listed The Dealers pay the price for the part at the payments from suppliers to which it was not public company); or time of the rebate, not at the time the part was entitled by threatening harm to the suppliers supplied. that did not comply with the demand. Coles (b) The acquisition or possible acquisition withheld money from suppliers it had no of goods or services from a person (other A court will typically now determine the issue right to withhold”. than a listed public company); of unconscionability by reference to the norms and standards of society. If normal, accepted Unconscionable conduct claims are difficult Engage in conduct that is, in all the and acceptable community and business to succeed with, but it is pleasing from circumstances, unconscionable. values are not met in commercial dealings a small business perspective to learn of then a claim for unconscionable conduct outcomes such as those achieved in the Warranty audits can sometimes be might be possible under section 21 of the ACL. Coles proceedings. It is also notable that the conducted in a manner that is unfair and/ recent publication on Australia’s competition or unconscionable. For example, Dealers Some of the warranty audit issues are similar and consumer laws, known as the Harper are sometimes asked to repay to the to the unconscionable conduct of Coles. Report, confirmed that there were sound distributor or OEM payments made to Coles would pursue its suppliers for a variety social and economic reasons for enforcing a the Dealer for warranty work because the of payments, including for profit gaps, waste minimum standard of fair dealing within the warranty work does not conform to the and fines for short or late deliveries, despite law, and that enforcing business-to-business ‘International Warranty Manual’. However, such profit gaps/fines not being part of the unconscionable conduct was an important if the ‘International Warranty Manual’ does negotiated terms and conditions. Coles would function of the ACCC.

28 | MARCH 2016 | automotivedealer.com.au FEATURES Australian Automotive Dealer Association INSURERS WARNED OVER AUTOMATIC RENEWALS

he Australian Securities and Investment In most cases consumers were only informed “Automatic renewal of insurance may be Commission has ordered six car insurers about the practice in the product disclosure convenient for some consumers but it is Tto inform customers about automatic statement – which was sometimes not received important that this is an informed choice,” policy renewals after receiving complaints until after the policy was issued – and the he said. from consumers. renewal notice. “Other consumers may wish to take the The six insurers that perform automatic opportunity to shop around when their An ASIC review found that insurers didn’t annual renewals have agreed to clearly inform insurance is due for renewal, to ensure they always clearly inform new customers that consumers about automatic renewal when are obtaining the best value cover that meets policies would automatically renew unless they consumers first purchase their car insurance. their needs.” advised otherwise. Insurers who have not already done so will update their telephone sales scripts, along with The six insurers at the centre of the Some customers had taken out a new policy clearer and more prominent messaging on complaints were AI (Suncorp Group), with a rival insurer before learning that their their websites. Auto & General Services, CGU Insurance old policy had been automatically renewed. (Insurance Australia Group Limited), The ASIC deputy chair, Peter Kell, said the Hollard Insurance Company, Progressive Others said their bank accounts had been disclosure improvements would help protect Direct Insurance Company and Youi. overdrawn by unexpected direct debits. consumers.

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ATO TO BROADEN TAX TRANSPARENCY

ADA urges all Dealers to ensure their these 1,500 large corporates paid almost $40 operating in Australia, investment from these affairs are in order after the Australian billion in company tax in the 2014 fiscal year.” companies should not be premised on no ATaxation Office (ATO) recently or very little tax being paid on significant published the tax details of about 1,500 Mr Jordan stressed that no tax paid does profits generated in Australia. Some of these large corporate taxpayers, with plans to also not necessarily mean tax avoidance. Any foreign owned companies are overly aggressive report tax details in relation to 300 private companies with unusual financial or taxation in the way they structure their operations. corporations. numbers are closely investigated by the ATO. We will continue to challenge the more Over half of these 1,500 companies have been aggressive arrangements to show that we are Commissioner of Taxation, Chris Jordan subject to ATO review or audit over the past resolute about ensuring companies are not AO, said the Corporate Tax Transparency three years. unreasonably playing on the edge. If they do, report forms part of a much wider domestic they can expect to be challenged.” “I am confident of the ATO’s oversight of these and global push for improved corporate large players in our economy and of our ability transparency. He said it informs public debate Mr Jordan said publishing the data was a to keep close watch on the revenue we receive,” about tax policy, particularly in relation to the “step forward in improving corporate tax he said. corporate tax system. transparency”. The Government is working with the Board of Taxation to go further and “We recognise that the tax system works develop a voluntary code so that complying “The transparency measure gives the through willing participation by the majority companies can tell their own tax story in a community the opportunity to see some of everyday Australians. Most large corporates, reliable and consistent way. corporate tax data that the ATO holds,” Mr particularly domestic Australian companies, Jordan said in a statement. meet their tax obligations, notwithstanding “Large corporates now have to consider the that we do have some significant disputes with “Community trust and have confidence in the impact of their tax information as a factor in some of them. way these large companies operate matters. managing their reputation with the markets, their shareholders, their consumers and in the And tax should matter to these companies. It is “As for the role of foreign owned entities Australian community,” he said. not something to be taken lightly. Collectively,

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he Australian Taxation Office has put It will concentrate on the following areas to • Trust schemes and arrangements that large businesses on notice that it is ensure large businesses comply: seek to minimise tax. Tfocusing on them this financial year to ensure they pay their fair share of tax. • Integrity of business systems for GST. • Restructure events.

The ATO released a statement in December • GST compliance on property • Complex structures used by wealthy stating that it “will work with large businesses transactions. individuals and their private groups. to focus on: • Financial supplies apportionment for • Research and development claims. • tax governance – minimising compliance GST. • Correct application of the consolidation risks through good governance • Compliance with new measures effective regime. • transparency – working together to get from 1 July 2017 for GST on imported • Exploration expenditure deductions. things right and provide community low-value goods and digital products and services. confidence that large business is paying • Bank branch attribution. their fair share of tax • GST on cross-border transactions. • Privatisations and public infrastructure • early and cooperative engagement – • Compliance with excise, wine transactions. prevention before correction; promoting equalisation tax and luxury car tax Of particular concern to Dealers are the early engagement on issues so we can obligations. provide certainty on tax treatment, and Luxury Car Tax obligations, but Dealers • Internationals and profit shifting, should also be aware of GST, trust, tax • increased guidance – helping business to particularly the application of thin minimisation, financial and property issues. ‘get it right’.” capitalisation rules, offshore hub AADA recommends Dealers sit down with arrangements and cross border related The ATO defines a ‘large business’ as one with their accountants and make sure they have all party financing arrangements. an income in excess of $10 million per annum. their i’s dotted and t’s crossed. CAPITAL GAINS TAX CHANGES TO HELP GROWTH - MINISTER

ealers wanting to change their legal using a legal structure that does not suit structure can now do so without their needs will no longer be stuck with that Dattracting a Capital Gains Tax (CGT) structure. This will allow them to restructure liability. their business without incurring an immediate CGT liability,” she said. In early February the Federal Government introduced a Bill to Parliament as the final “The Government’s 2015-16 Budget ‘Growing plank in its $5.5 billion ‘Growing Jobs and Jobs and Small Business’ package also includes Small Business’ package. tax cuts for all small business; immediate deductibility of all eligible assets costing less Minister for Small Business and Assistant than $20,000 and immediate deductibility Treasurer, Kelly O’Dwyer, said the legislation of professional expenses for new small would reduce risk and complexity and make it businesses.” easier for businesses to grow.

“Small business owners who find they are

automotivedealer.com.au | MARCH 2016 | 31 FEATURES Australian Automotive Dealer Association FEDERAL GOVERNMENT PUSH TO END SUPERANNUATION RATE RISES

he Federal Government is preparing The Government has proposed abandoning Prime Minister, Malcolm Turnbull, and to dump a planned rise in compulsory any further rises, saying it will be too costly to Treasurer, Scott Morrison, are concerned the Tsuperannuation that would add $20 implement and won’t do enough to build the levy will hurt the budget and won’t produce billion a year to employers’ wage bills. retirement savings for millions of workers. the benefits Labor claimed it would achieve, namely building up private savings and Under the previous Labor Government, the Cancelling the rise would cut billions of dollars reducing reliance on the Age Pension. super guarantee levy was scheduled to rise from the federal budget and save employers from 9 to 12 percent of salaries as part of significantly. The Government says it could The Government believes the forced the 2010 mining tax. This would be paid by also help fund income tax cuts, something it is contributions to super do little to benefit employers. determined to do. low-paid workers. Because the levy effectively Treasury officials say the Government could comes out of today’s wages, workers make less The Abbott Government postponed the policy money now and still rely on the Age Pension as part of its undoing of the mining tax, but save billions of dollars by scaling back the tax concessions on super. Budget costs associated later. Most workers receive the full pension the levy has already increased to 9.5 percent. after they retire. It is due to rise to 10 percent in 2021 and 12 with the super guarantee levy could lead to percent in 2025. further savings. NTC CALLS FOR INPUT ON AUTOMATED VEHICLE LAWS

written with autonomous vehicles in mind, but the driver, what is meant by ‘control of the now that increasingly automated vehicles were vehicle’ and consider how automated vehicles being developed it was time to look closely at should interact with other road users.” what changes may be needed. Mr Retter said the NTC would work to “Automated vehicles will be safer, more ensure future regulations promote innovation productive and give senior Australians and and competition, and continue to remain those with a disability more independence in consistent with international standards their lives. However the benefits offered by and conventions whenever it is safe and these vehicles will only be realised if we get appropriate to do so. Australia’s laws and regulations right,” he said. he National Transport Commission He said many different types of automated (NTC) has called for policy makers, “While we have already identified a number vehicles would be developed in the future and Ttechnology experts, vehicle developers of potential issues, we are asking anyone with therefore the NTC will consider a flexible and and the rest of the Australian community to an interest in the future of transport to have performance-based regulatory approach that their say. This feedback will help to make helps to encourage new transport technology. help shape appropriate laws to maximise the sure we address all the issues associated with benefits of automated vehicles. automated vehicles. Submissions to the issues paper are due by Tuesday, 8 March 2016. These submissions The inter-governmental agency has released an “For example, many road safety laws assume will help the NTC develop a discussion paper issues paper and called for submissions from that there will always be a human driver, but with detailed options analysis to be published the public on how to develop the best laws and how do automated vehicles comply with a legal in mid-2016. regulations for the emerging technology. requirement to hold a driver’s licence, comply with authorised officers or give assistance if a More information is available at http://www. Chief Executive of the NTC, Paul Retter, said person is injured? The NTC will need to look ntc.gov.au/current-projects/preparing-for-more- Australia’s current laws and regulations weren’t at fundamental concepts including defining automated-road-and-rail-vehicles/ FEATURES Australian Automotive Dealer Association DECEPTIVE CONDUCT UNDER ACCC MICROSCOPE

he Australian Competition and testimonials on the internet. Consumer Commission (ACCC) is Tcontinuing to focus upon misleading “While online testimonials can be a useful and deceptive conduct complaints from small and genuine marketing tool for businesses to businesses, as revealed in the latest biannual advertise to consumers, deliberately making or ‘Small Business in Focus’ report. inducing false or misleading representations in testimonials breaches the Australian This report, the eleventh in the series, contains Consumer Law and confers an unfair the latest small business and franchising advantage when competing against businesses complaints data. that do the right thing,” Dr Schaper said.

“Over the last six months, the ACCC The report also outlines the ACCC’s recent received almost 5,000 complaints from small and upcoming activities to help businesses businesses. Concerns about misleading understand their rights and responsibilities conduct remain the biggest issue for small under the new business-to-business unfair what you need to do before the law takes effect. businesses,” ACCC Deputy Chair, Dr Michael contract terms protections, including a free It will also explain: Schaper, said. interactive webinar on 16 March. • which contracts and terms are covered by “Conduct resulting in substantial small Small business in focus is available at http:// the new law business detriment has been a priority for the www.accc.gov.au/publications/smallbusiness infocus1july2015to31december2015 ACCC and we want to make it clear that this • the types of terms that may be unfair, and type of conduct is unacceptable.” The ACCC Small Business webinar • how to determine if a contract term may In November, the ACCC achieved a significant ‘The new business-to-business unfair contract be unfair and what you can do if you court outcome when Safety Compliance Pty terms law – what you need to know and do receive a contract that you think includes Ltd was ordered to pay a penalty of $515,000 now’ webinar will be held on Wednesday 16 an unfair term. for making false or misleading representations March 2016 at 7pm (AEDST). Register at to small businesses in connection with the The Australian Taxation Office defines a http://www.webcasts.com.au/accc160316/. supply of safety wall charts and first aid kits. small business as one that has annual revenue The webinar will provide a general overview of turnover (excluding GST) of less than In December, the Federal Court ordered the the new business-to-business unfair contract $2 million. Fair Work Australia defines a franchisor of the Electrodry Carpet Cleaning terms protections and, if your business offers small business as one that has fewer than 15 business to pay total penalties of $215,000 standard form contracts to other businesses, employees. for its involvement in the publishing of fake

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One of the vehicles was the Hyundai Tucson, which received a disappointing 4 stars when it JAMES GOODWIN was first crash tested by ANCAP in September 2015. ANCAP CEO Our initial testing of the 2.0-litre GDi petrol 2WD variant revealed the structural integrity of the driver footwell was compromised in the here was a concerning 4.9 percent frontal offset test and there was also excessive increase in the number of people killed movement of the brake pedal, meaning Ton Australian roads in 2015. There are the vehicle could not achieve 5 stars. This many reasons why those 1,209 people died, but was below what ANCAP, Hyundai and the it is clear that safer cars are a vital element in community expected of a new vehicle in such the safest vehicles possible. We’re continually reducing trauma on our roads. a competitive segment. improving the safety of the national vehicle fleet. Given the community has become used to The teams at ANCAP and Hyundai hearing about continuing reductions in the identified steps that might rectify these issues With the recent increase in road fatalities, road toll over the past few years, this sudden through both design and production line now more than ever we need to work together jump is likely to mean vehicle safety is set to be changes. Following significant safety-related to demonstrate to potential new car buyers a key topic of discussion amongst politicians, improvements, ANCAP tested the updated the importance of driving the safest vehicle the media and, indeed, new car buyers, in Tucson in December 2015 and the new model possible. 2016. achieved the 5-star safety rating. I look forward to working with vehicle The Australasian New Car Assessment This case highlighted the importance of brands, Dealership management and sales Program (ANCAP) released safety ratings for local, independent vehicle testing to ensure representatives to help show the benefits of 45 vehicles last year, covering 94 percent of the consumers can be accurately informed about buying a safer vehicle. new vehicle marketplace. It is encouraging that the vehicles they are looking to purchase, 83 percent of these vehicles were awarded a and also the actions of a responsible brand ANCAP is the leading independent crash 5-star safety rating. concerned about the safety of their customers. testing authority in the Australasian region, providing consumers with safety ratings In the competitive and growing SUV category, ANCAP can achieve improved road safety and crash test information on new vehicles we tested 17 vehicles, only two of which failed outcomes by working with the automotive available in the region. to reach the 5-star mark. industry to ensure the community is driving

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automotivedealer.com.au | MARCH 2016 | 35 FEATURES Australian Automotive Dealer Association AUSTRALIAN SCHOOL-BASED APPRENTICE OF THE YEAR SAYS GENUINE IS BEST

“I worked on a range of brands, including Now in their 22nd Volvo and Chrysler, and customers came to us year, the Australian because we were a trusted supplier of genuine Training Awards, parts. We knew they were coming for quality presented by the and assurance,” Alan said. Federal Department “There were a number of cases where clients of Education and had been elsewhere to get their cars fixed, Training, are the trying to save a few bucks on parts, but they peak national awards got burnt in the long run. Even if they’re out of for the vocational warranty I still take my cars back to the Dealer education and training for service.” sector, recognising individuals, businesses Having retired from football in 2011, Mr ustralian School-based Apprentice and training organisations. Tongue splits his time between his role as an of the Year, motorcycle technician, ambassador for Australian Apprenticeships, a ABrenden Williamson, has endorsed the Commenting on Mr Williamson’s mentor with the NRL’s ‘Trading Up’ program, Federal Chamber of Automotive Industries’ endorsement, FCAI ‘Genuine Is Best’ which focuses on increasing the retention and (FCAI) ‘Genuine is Best’ initiative which spokesman Ashley Wells said high training completion rates of apprentices involved in highlights the safety, performance and standards go hand-in-hand with a focus on rugby league, football commentary for ABC durability benefits delivered by genuine safety and quality. Radio and, last but not least, his ‘Mentoring replacement parts. Thru Fitness’ program. “As Brenden’s comments have made clear, only Competing against a field of over 200 school- genuine parts are manufactured or selected Now entering his second year of Certificate III based trainees from around the country, by a car or bike’s maker and tested as one of study, Mr Williamson’s post-award schedule is Brenden was judged best-of-the-best for its integral components to meet high quality, also packed with extra-curricular activity. As 2015 and has been appointed as a national safety and performance standards,” Mr Wells well as working full-time with On Two Wheels ambassador for Australian Apprenticeships. said. Motorsports, he manages to juggle his role as an Apprenticeships Australia Ambassador At the same time, another Australian Now working full-time at On Two Wheels with mentoring new recruits to the Yamaha Apprenticeships Ambassador with an Motorsports, an authorised Kawasaki and Student Grand Prix Partnership – a program automotive background has given ‘Genuine Is Yamaha Dealer in Campbelltown, NSW, that aims to connect school students and Best’ an emphatic thumbs-up. Mr Williamson said his training and work younger people in the community with a experience have reinforced the benefits Canberra Raiders NRL legend and former workplace or business – and helped set up Mr of using genuine parts for repair and apprentice, Alan Tongue, gained his Certificate Williamson’s employer relationship. maintenance servicing. III in Automotive Mechanical Technology while playing in the top grade for rugby “We can rely on genuine parts for durability league’s ‘Green Machine’. because we know they’ve been designed by the bike’s maker to do the job they need to. It’s a In a career spanning 12 seasons and 220 first- safety issue,” he said. grade matches, the tough-tackling forward studied part-time, with employer training at “Genuine parts are also a lot easier to fit what is now Rolfe Motors (formerly Scuderia because they’re made for that bike, and we Veloce Motors) in Phillip, a southern suburb know it’s up to the job when it leaves the of Canberra. workshop.”

36 | MARCH 2016 | automotivedealer.com.au FEATURES Australian Automotive Dealer Association FCAI WELCOMES CONSULTATION ON REDUCING CO2 EMISSIONS IN LIGHT VEHICLES

he Australian light vehicle industry “The automotive industry’s continued supports a mandated CO2 emissions commitment to introduce new technology Ttarget for new cars. It is working with for new motor vehicles is achieving continued the Government to establish a CO2 target emissions reductions in Australia,” Mr Weber that takes into account the realities of the said. Australian market and will produce real fuel “To make further reductions from private road consumption savings for Australians. transport, it is important the Government

While the CO2 contribution of annual considers a range of policy matters, including “CO2 emissions from light vehicles can also sales of new passenger cars, SUVs and light fuel quality, infrastructure and incentives be reduced through improved driving habits. commercial vehicles is low (less than one for the take-up of low-emissions vehicles, Public education and awareness raising may and driver behaviour. I am pleased the percent of Australia’s total annual greenhouse provide drivers with techniques to reduce Government has recognised in its discussion fuel consumption and CO2 emissions. Such gas emissions), vehicle manufacturers selling paper the need to consider all of these factors education may also improve road safety.” light vehicles in Australia recognise they have before a target can be determined.” a role to play in emissions reductions and are Mr Weber highlighted a recent presentation committed to developing and delivering new Mr Weber noted that emerging vehicle to the Government by global automotive technologies that reduce CO2 emissions in technology, including hydrogen and electric industry research experts IHS Automotive, their vehicles. vehicles, presents another opportunity for the which shows emissions reductions policies achievement of further emissions reductions around the world and which highlights that Welcoming the Federal Government’s Vehicle in Australia in the longer term. Australia needs its own solution for emissions Emissions Discussion Paper, FCAI Chief reductions. Executive Tony Weber said the FCAI will “To effectively introduce a range of low- continue to work closely with the Government emissions vehicles, it is important the industry “IHS Automotive has presented the facts to ensure a thorough understanding of the and governments work together to provide the and realities of emissions reductions in the Australian automotive industry. He said he appropriate infrastructure. In countries such as automotive industry globally. When looking was pleased the Government recognised the Japan, Government-led consumer incentives at the facts, they state that no ‘cookie cutter’ inter-relationship of fuels, pollutant emissions and infrastructure investment played approach can work. Australia is not Europe significant roles in the uptake of vehicles with or the United States and has its own unique and CO2 emissions. these technologies,” he said. market, consumers and driving needs.”

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“Some of the Dealers have taken it to heart as much as I have. I think because of Bailey himself - such a young boy, the life he could have had - taken away so quickly because of the lack of money, and the research and care probably weren’t available. I was astounded that it was only part-time. It drove me to think to myself, ‘Imagine what would happen - and it has - if they had the money to do it full-time’.”

Family values

Everyone involved with Bailey’s Day has been blown away by how enthusiastically the Dealer community has supported the event, but Mark says that’s just a reflection of the strong family values common amongst Dealers.

“There are probably more family businesses in the car business than in any other business, ailey’s Day, the charity golf day and “I’ve known Patrick for 30 years, basically since with the involvement of sons and daughters,” auction adopted as ‘their charity’ by I bought into Noel Gould in 1986,” says Mark. he says. BDealers, has raised more than $2.5 million for cancer research, doctor training “When Patrick rang me and told me that his “Most of them are family businesses. People and a Children’s Cancer Centre over the past boy wasn’t well, from that day on we kept don’t realise when they look at a big car decade. in touch and when Patrick told me what he business that inside is a family business.” wanted to do and asked me if I wanted to be Much of the money raised is due to the involved, straight away I said ‘of course’.” Mark says the generosity of spirit extends not dedication and commitment of Bay City just through the Dealership community, but Holden’s Mark Sawicki, who acts as the Watching his old friend suffer through the into associated industries as well. auctioneer and always manages to squeeze a loss of a child reminded Mark of the feelings few more dollars out of every bidder. of helplessness he’d experienced watching a “The partnership that the car Dealer has with colleague go through something similar. He his suppliers, and the loyalty that the Dealer Mark has been involved with Bailey’s Day knew he had to do something. puts into the suppliers - for them to be able from the beginning in 2004, not hesitating to come and do what they do, and generously to volunteer his time to help old friend and The showman give their product, is what it’s all about,” he Bailey’s Day founder, Patrick Tessier, who “I’ve always had a passion for auctions, always says. established the charity after losing his infant wanted to auction, and Bailey’s Day gave son, Bailey, to a brain tumour. “The driver of all this is, of course, Patrick. It’s me the passion to start the auction. I love it Patrick’s passion from day one and if it’s going When Bailey was treated at Monash Medical because I can see the good it’s done, and I to survive it will be because of Patrick. When Centre, the hospital shared a part-time can also see the people bidding on it – their Patrick feels that he’s done his job and says, oncologist and there was no dedicated cancer commitment to the cause is just fantastic. It’s ‘I’ve done what I wanted to achieve’, I think it ward. The money raised by Bailey’s Day has great, from where I stand, to see how involved will have run its course, but I think it’s got to built a Children’s Cancer Centre and funded people want to be. be Patrick who says, ‘We’ve done it’. the training of a dozen paediatric oncologists.

38 | MARCH 2016 | automotivedealer.com.au “It’s something that’s both heartbreaking and The breakfast program has since been achieving my own goals, I realised I could inspirational. Being so close to Patrick and absorbed into the Victorian Department of do anything really. It’s how good you are as understanding how he lost his boy – and I Education and Training’s School Breakfast a person, how people perceive you and trust have five grandkids. The more they do and the Clubs program, but the Sawickis are still you, that determines how well you’re going to more we help, the better it is.” generously providing for Aldercourt Primary go in life.” School in the form of books and scholarships Care for your community for students. Family man

Mark is a strong believer that Dealers should People person Mark has known wife, Leala, since he was 16, be active in their community. and says he couldn’t have achieved what he Having begun his career in the car industry has without her. They have three children and “A Dealer has to be responsible for his prime with Reg Hunt in 1974, after time spent in five grandchildren together, and now that he’s area, and the more he can put into that National Service, Mark quickly appreciated it reached retirement age he looks forward to community, the better,” he says. was a business in which he could excel. giving back to enjoying his family more than ever. Over a decade ago, former Essendon “I left school at 12-and-a-half. What I found footballer, Ken Fletcher, dropped into Bay with car selling is that it’s your personality that “She’s very much a big force behind me. We City Holden and informed Mark that the local secures a deal. When people come to buy a went through it together. She believed in Aldercourt Primary School needed a breakfast car they want to talk to somebody who can me. I think that’s the key; you’ve got to have program because children were going without. satisfy their needs, and that’s my forte. I’m somebody who believes in you. good at talking to people, getting the best out For more than a decade after that, Bay City of them. I am interested in people, I like a joke “The plan from now is to spend a bit more sponsored daily breakfasts for kids at the and I always have a good time. I found that time with my wife and the grandchildren, and school, with mothers coming to cook bacon my personality suited the car selling business,” let the boys (sons Adam and Josh) take it the and eggs and provide milk for children whose he says. next step. Both boys have the same outlook on parents didn’t have the time or means to do it life that I have, personality-wise. We don’t take themselves. “When you’re in the army and you’re standing life too seriously; we believe that if we do the with 100 other guys, you don’t know who right thing by people, people will do the right “We’ve been invited to the school many times, they are, whether they’re a bricklayer or an thing by us. my son and I, for breakfast when they were engineer; you’re as equal as they are. I thought, cooking it,” Mark says. ‘I’m as good as any of these guys. Why can’t I “I’m happy that the car business has enabled us to do things like Bailey’s Day. To make a “Just to see the kids and how they get involved excel?’ difference. A guy like me, getting involved with in serving it, and the mothers helping, it’s an “I started excelling in the army by trying to Patrick and doing what we have done, is really eye-opener to what good can happen.” be fitter than the others. And when I started one of my best accomplishments in life.”

automotivedealer.com.au | MARCH 2016 | 39 FEATURES Australian Automotive Dealer Association UK REPORT: ARE DEALERS ‘ATTRACTIVE’ AGAIN?

s in Australia, Dealership sales are The Motor 150 Report aggregates the financial net assets plus goodwill premium. strong in the UK, prompting accounting results for the top 150 companies operating in the UK retail motor industry. According • Willing buyers for high and low Agroup, BDO International, to state that performing dealers. Dealers are back in favour with the car-buying to BDO Australia partner, Mark Ward, the challenges and trends encountered by UK public and investors. In summary Dealers are very similar to those faced in Australia. The BDO Motor 150 report reveals:

Are Dealers ‘attractive ’ again? • turnover of £55.2bn, which represents a 15.7% increase on the prior year “Interesting are the observations regarding merger and acquisition activity in the UK,” Mr • gross margin of 11.17%, which has Ward said. decreased steadily over recent years

He said the British report made observations • net profit before tax of £825m, which similar to those noted by BDO in Australia. represents a 27% increase on the prior These included: year

• Large UK groups consolidating overseas • return on equity of 17.61% compared to buyer interest. the previous year of 15.45%, and

• Bank and stock market support for the • net profit before tax as a percentage sector. of sales of 1.49%, which has increased steadily over the last few years. • Good valuations based on the traditional TO TRAIN OR NOT TO TRAIN?

o train or not to train: that is the question can improve your business’ profitability facing not just car Dealers but business and reputation. By improving your Towners of all types. On the one hand, if workforce’s skills to meet the needs of you train your staff they might leave; on the both your business and your customers, other, if you don’t train them they might stay. you project professionalism and efficiency. Better-trained staff are more While most Dealerships will put most of their productive, which is great for your staff through some sort of training, AADA bottom line. believes they can and should do more. A well- trained employee is an asset to the business: • Customer Service: Dealers are in the more capable, more confident; appreciative of customer service business. Better staff the show of faith, and better able to represent skills mean greater customer satisfaction, the Dealership to the public. which means more return business.

What are the benefits of skills training? • Workplace Safety: All Dealers should know how big an issue this is these days. • Business Performance: Training staff

40 | MARCH 2016 | automotivedealer.com.au FEATURES Australian Automotive Dealer Association

• Staff Morale: Investing in training for • NADA University is the retail automotive David Martin, one of the best sales your staff tells them you value them. In industry’s most comprehensive online trainers in the automotive world. A return they are more likely to show you source for training and education. regular guest speaker at AADA National loyalty and increase staff retention. Growing out of the largest automotive Dealer Conventions, Mr Martin has Dealer association in the world, it developed an online training program • Staff Motivation: Endowing your workers offers hundreds of courses covering all that allows users to work at their own with new skills improves their confidence, Dealership departments. pace in their area of speciality. shows them you believe in them and keeps them fresh and motivated by • Deloitte Motor Industry Services is a Whoever you go with, AADA believes it is allowing them to move into other areas great friend of AADA and is one of the imperative you invest in training for your staff. of the operation and earn promotions/ leading trainers of automotive staff in It pays off for you, your business, your staff and pay rises. Australia. your customers.

Who provides the best skills training? • E-Auto Training is the brainchild of CALL FOR NEW LAWS AS PETROL PRICES FINALLY FALL

wo Australian senators have called for and Adelaide. However, they soon rose again, new laws to protect drivers from being almost back to the $1.20 mark. Tripped off at the bowser as crude oil prices fell to their lowest level in 13 years. The ACCC was also concerned savings weren’t being passed on, and held informal meetings Senator Ricky Muir of the Australian Motoring with major petrol retailers. Prices fell soon “Petrol is an essential product and Enthusiast Party said the Federal Government afterwards. rorting by anyone in the supply should review current legislation and chain is unacceptable,” he said. consider stronger powers for the Australian Victorian Senator, John Madigan, backed Competition and Consumer Commission to Senator Muir, calling for an “open, transparent, AADA supports the Senators investigate and punish price gougers. competitive and fair” pricing system. and the AADA in their efforts to make petrol more affordable for He said regional and rural motorists – often “It is no secret than when the price of a barrel Australian motorists. of fuel goes up, the cost to the consumer seems those who could least afford it – were hardest to be passed on even before the next delivery hit. of fuel arrives,” he said.

“Sadly, there always seems to be some excuse as to why the same does not happen when the price of a barrel drops.”

Crude oil prices have slumped 20 percent this year to about $US28 a barrel. It is the first time since 2003 that crude oil has fallen below $US30 a barrel. Eight months ago prices were hovering around the $US65 mark.

Australian petrol prices did not initially drop in line with crude oil prices. Despite a 70 percent drop in the price of crude oil over 18 months, Australian petrol prices were down just 20 percent in the same time.

Once Senator Muir’s comments hit the media, petrol prices fell from around $1.20 to just over $1 a litre, with prices even falling below $1 per litre at some service stations in Sydney FEATURES Australian Automotive Dealer Association

TOP 10 NEW TECHS FOR 2016

News Limited charging panels in the centre console of new But the technology is getting better and the cars. Jeep already has wireless charging on top-of-the-range version of the new Holden CarsGuide Team certain models and the new generation Toyota Astra, due in late 2016, has LED lights that Contributor Prius hybrid has the technology available not only cancel out the high beam when a car overseas. approaches but are so accurate they keep the ars that drive themselves might still area around the car illuminated. Voice to text be decades away but some really The only drawback is that the technology is Ccool technology is just around the Voice command technology will appear on really expensive, so models equipped with the corner. Here’s a Top 10 list of technology and more models in the near future. Certain Fords system might be dearer to insure. innovations to look forward to in everyday already have it and most cars can use Siri when cars in 2016. paired to the latest Apple phone. Stop-start systems

Apple CarPlay and Android Auto With the very latest iPhone6S range you don’t An increasing number of cars automatically even need to touch the phone to activate Siri. cut the engine when they’re stopped – a feature After programming it you simply say, “Hey designed to save fuel. Siri”, and it wakes up the phone, ready to take a voice command to dictate a text or dial Because the EU has strict emissions and whoever you want to contact. economy targets, more cars are going to have stop-start engine shut-off technology. The Auto high beam good news is if it annoys you, there is usually a button to disable it - but it can’t be disabled A handful of luxury cars (and the top-of- permanently otherwise the car’s certification the-range Toyota Camry) already have is invalid. Apple CarPlay (and the Android equivalent) auto-dipping high beam. A sensor in the will appear in more new cars this year. Suzuki windscreen spots oncoming traffic and then 360-degree cameras and Volkswagen were among the first in cancels your high beam before you do. Australia to bring smartphone apps to the With rear-view cameras now standard radio touchscreen in the car dash in 2015. The lights not only cancel out high beam when equipment on a $14,990 Honda Jazz and a a car approaches, but also keep the area around $15,990 Toyota Yaris, there really is no excuse With hefty fines for touching a phone unless the car illuminated. for dearer cars to not have them (although it is in a mount, the introduction of Apple Car vehicles such as the $50,000 Ford Ranger ute Play and the like to more models is welcome To be frank, the systems we’ve tested so far still lack them). news. on Audi, Mercedes and Toyota cars were a bit underwhelming. They get tricked by reflective But there is a new type of camera that makes Wireless phone charging signs and dip the lights even if there are no parking – and seeing obstacles around the car oncoming cars. – even easier. Coming soon to more new cars We will also start to see wireless phone- are 360-degree cameras that appear to give a

42 | MARCH 2016 | automotivedealer.com.au bird’s-eye view of the vehicle you’re driving. of the vast distances between places. button to make the car ‘search’ for a space. And you still need to gently operate the accelerator The optical illusion is created by wide-angle Tyre pressure monitors and brake pedals in most cases (the car merely cameras in the nose, the rear and under adjusts the steering to ensure you make the In response to new laws in the US, car makers each side mirror. The images join to create a spot). complete picture. Now there really is no excuse are fitting tyre pressure monitoring systems to for poor parking. detect a flat (or deflating) tyre before it’s too Traffic jam control late. Until now they’ve mostly appeared on 4WDs This technology takes the grind out of the daily and SUVs, but they will start to trickle down The technology is already available on top end commute by creeping forward with the flow of to more affordable models as the technology luxury cars and some performance models, stop-start traffic automatically. It uses cameras gets cheaper. but will become more widespread in 2016 and and radar systems to detect the distance to the beyond. A flat tyre can lead to a crash or roll- cars in front and then applies the accelerator Space-saver spares and repair kits over if the driver has no idea they’re driving on and brakes as required, even if it means one, so this is one light on the dash that could coming to a complete stop. In their desperate bid to save weight, car save a life. makers are leaving out full-size spare tyres. Until now the technology has been exclusive Self-parking to expensive luxury cars such as BMW and Skinny space-saver spares (they look like they Mercedes-Benz. It’s also on the top-of-the- belong on a wheelbarrow) and tyre inflator kits It takes twice as long to use the technology range Nissan Patrol. But as the technology (they spray goop inside to get you going again, than it does to park yourself. becomes more affordable, we’re predicting it but are useless if you’ve a large split in the tyre) will be available in more models in 2016. Call are primarily designed for Europe and Japan. As cars get smarter and are fitted with more sensors, more of them will be able to park it the gradual automation of the automobile. They don’t suit everyone in Australia because themselves. Kind of. You still need to press a BUILDING BETTER OUTCOMES AT THE 2016 AADA CONVENTION

2 016 AADA National DEALER CONVENTION 6 - 8 SEPTEMBER 2016 BETTER OUTCOMES aadaconvention.com.au

ADA is excited to announce a new record 1,056 delegates, and every workshop, opportunities. Showing your wares on the format for the 2016 National Dealer session and function will be held inside the trade expo floor gives you the chance to AConvention, which will be held in purpose-built venue, making it easier for both demonstrate and explain your products and Melbourne from 6-8 September. delegates and exhibitors to access every aspect services to a captive audience. of the Convention. The Thursday will be exclusively for Expo places are always in high demand, workshops, with 12 dedicated sessions As usual, the Convention will feature the best so to ensure yours contact Commercial covering the likes of New Car Sales, Used speakers and special guests from Australia Sales Manager, Geoff Vine, on 0413 854 Sales, Finance and Insurance, Aftermarket, and around the world. Announcements are 779 or email [email protected]. Recruitment, Inventory Management and coming soon, so make sure you save the dates. au. For convention enquiries please contact Convention Manager, Shelly Scott, on 03 9576 Digital Marketing. AADA is calling for bookings for sponsorship 9944 or [email protected]. Unlike last year, which was spread out over and trade expo places for the 2016 AADA National Dealer Convention. The AADA National Dealer Convention is an various rooms at the Melbourne Convention annual highlight of the automotive calendar so and Exhibition Centre, the 2016 event will be Get your name out there make sure you don’t miss out! contained in Bays 1 and 2 of the Exhibition Centre. Sponsoring a session, social event or workshop AADA will release the Convention program is a great way to get your brand in front of on 31 March. Watch aadaconvention.com.au AADA listened to the feedback from last year’s Dealers, and makes for ideal networking for updates and further details. FEATURES Australian Automotive Dealer Association WHY DON’T MOTOR SPORT COMMENTATORS AND JOURNOS MAKE START OF SEASON PREDICTIONS?

Australian sporting event. race result tipping or pre each race in the John Crennan season. This year there are a lot of changes in the Motorsport Contributor Series, in particular with drivers and some To display the courage of my convictions, I teams. Noted below are some of the official or have been silly enough to ‘walk the plank’, anticipated key changes in each of the teams stand tall, and give my unbiased views on and my views on the prospects for everyone what we may expect of each team. I have also on the grid this year. included my predictions for the 2016 Driver he first week of March sees the Season Championship and the finishing order of all 26 Opener for the V8 Supercar Series on the Our high profile national football codes see drivers in the competition this year. Tstreets of Adelaide, with this article being all commentators and journalists pre-season submitted two weeks prior. Whilst Bathurst spend endless television time and column 888 is the best race on the Australian Motor Sport inches in the six-week lead-up to the season, Calendar, the Clipsal four-day program in giving their predictions on potential winners This team is renowned at each season start for Adelaide is the greatest ‘Event’ in our sport. and losers. They tip everything from the under-promising and then over-delivering Adelaide delivers everything and more for a premiers, the eight finalists, the two grand throughout the season. Very hard to go past major sporting event: finalists, top goal kicker, the ‘Best and Fairest’ them as favourites for the Championship, awards and even the wooden spooners. There however the introduction of mercurial new • Beautiful early autumn weather. is a fanatical level of fan and supporter interest driver, Van Gisbergen, and a third car will in these tipping predictions, and debate always definitely change the dynamics of this team. • Outstanding visitor accommodation lights up talk-back radio. These tipping debates With two ‘take no prisoners’ drivers in Van within walking distance of the track. are phenomenal brand builders for the sport, Gisbergen and Whincup (and Lowndes both pre-season and week-to-week. • Superb cafes, bars and restaurants. wanting to ensure his entry isn’t just a three- year retirement plan by his boss), a lot of • A buzz and special party atmosphere Equally fanatical are the official tipping competitions that each code conducts online, internal ‘things’ will change in this team. After in downtown precinct and adjoining six races we will have a good indication of suburbs. which guarantee 26 continuous weeks of promoting the levels of fan interest, as anyone whether three cars and the Van Gis factor will • Music and concert entertainment each with an ounce of the love of sport enters succeed or fail. The question must be asked evening in great venues. their footy tips online each week. ‘It’s just not that, apart from financial/sponsorship reasons Australian’ if you have not put your footy tips in locking up three of the series’ best drivers, • A welcoming and warm spirit and in by 6pm Friday or if your local coffee shop is why would you disrupt what has been the well- enthusiasm by all the locals. not conducting a tipping competition. proven perfect balance in this team.

Inside the track I am convinced that whatever This massive marketing ‘free kick’ is missing HRT / Walkinshaw Racing Formula 1 did for South Australia between in our V8 series the years 1985-1995, the V8 Supercar If T888 are renowned for under-promising Series (following taking it over in 1999) One of the great initiatives our V8 organisers and over-delivering, then ever since the original Steve Hallam appointment, HRT has has surpassed the F1 show twofold in fan- could introduce at the season start would done the opposite. The time has surely come to friendly facilities, layout, entertainment be an official tipping competition for the put up or shut up! There are confusing signals and accessibility to teams and drivers. The Championship and the Top 5 for each race pre-season from this team. Late in the year attendance levels on each of the four days of weekend. I cannot understand why our they noted a full commitment to a four-car the event are nothing short of staggering for an commentators don’t get involved in pre-season business model and then, just a little later, did a Brad Jones Racing high maintenance antics (like at Bathurst last 360 and reduced to two cars, saying that would year) are a distraction in a top rating team. lift a weight off their shoulders and greatly It is also difficult to see how this team will be The rumoured appointment of Cam Waters to assist their focus in the Championship. on the same standing as their 2015 results of replace Reynolds is an inspired move and great 7th, 16th and 23rd. They lose their signature investment for the future. The most interesting Then, not long after, we are hearing HRT/WP driver in Fabian Coulthard (7th), replaced scenario in the team will be if Mostert starts will provide/service Erebus with two customer by Tim Slade who is yet to win a race in his out-performing Winterbottom. This will test cars. It was my experience in this team that it 217 starts in this series. Additionally, their the meaning of ‘teammates’, with classic old was far easier to manage/control and race four other proven driver, Jason Bright, moves into bull/young bull scenarios coming into play. cars in-house than cope with the hassles of genuine veteran phase and is now, at 43, the servicing a demanding customer team in the oldest driver in the field. Nissan Motor Sport midst of racing two cars. Their third car previously never figured in On the surface this team may appear a little Then, a few weeks later, we learn the Championship standings and most likely the less competitive this year with the loss of Walkinshaw operations will enter the GT same will occur in 2016. The big question is NR sponsor, Jack Daniels; chief engineer, series with Porsche. A fair comment may can this ‘little Aussie battler’ team of the series Craig Spencer, to F1 and the loss of James be that chances of greater focus for the continue to punch above its weight. Moffat. However hopefully, this is the year the Championship with two HRT cars with long-awaited new engine spec fully kicks in all these bolt-on projects are anomalous. Lucas Dumbrell Racing and reverses the team’s fortunes. If this does Dropping two race cars and loading up with happen then Rick Kelly will lead the charge This team runs the risk of being a serial two customer cars plus a Porsche GT program and should deliver some great results as, with underperformer if, in their 7th year in the must surely impact HRT performance over the his uncanny ability to race hard all day and series, they don’t produce some competitive journey of the season. avoid self-harm, I rate him in the top three turnaround. Last year’s 21st and 22nd must drivers in the competition. Erebus change. Percat and Heimgartner are reasonable performers and should be able to take LDR It will be mightily important for the Kelly boys Major changes here in all areas of the team further up the grid. and Nissan to perform in this, their fourth year would suggest it will be very difficult this year in the series. Apart from Rick’s solid 9th last Pro Drive Racing for the colourful Betty Klimenko team to year, the other results of 12th, 17th and 18th advance up the grid from their 2015 results of This team was the surprise packet for the were below expectation. 15th and 25th. In their fourth year in the sport, series in 2015 when their three leading cars they go from an in-house capability to having DJRTP finished 1st, 3rd, 11th, and had Mostert not a dependence on a supplier relationship with been injured at Bathurst they were a chance another team. They also move manufacturers Last year was a tough initiation for the USA for three in the top five. Can they repeat from Mercedes to Holden, move facilities from Penske group in the first year as majority their performance in 2016 and is Chaz fully Brisbane to Melbourne and introduce two owner in the new DJR Team Penske operation. recovered is the question on everyone’s lips. new drivers, one of whom is inexperienced in The decision by Marcos Ambrose to step away as a main driver after two events last year elite ranks, while losing some personnel from A big loss with engineer, Adam De Borre, and created a loss of momentum that was difficult their senior ranks. One plus is the attraction of the rumoured loss of Pepsi as NR sponsor on to recover from, despite Scott Pye relishing his Penrite as a NR sponsor. two cars will hurt. Despite Reynolds finishing unexpected promotion. 3rd it seems team boss, Tim Edwards, is not displeased with his departure, as his off-track, This year looks promising, with experienced FEATURES Australian Automotive Dealer Association podium performer, Fabian Coulthard, joining Whilst I can’t see new driver, Will the team and talented Scott Pye getting Davidson, performing to the level of some valuable experience under his belt. his predecessor, Tekno will always be Additionally, the team has recruited some competitive. proven technical talent. This team should be one of the big improvers in 2016. Crenno’s driver championship prediction come 5pm, 27 November2016 Charlie Schwerkolt Racing

Starting from near-scratch as a new team in Driver Career V8 Races Career V8 Wins Win/Race Ratio 2016 will be a big call despite the energy and 1. JamieWhincup 379 97 26% experience team manager, Jeff Grech, will bring to the team. Driver Lee Holdsworth’s 2. Chaz Mostert 89 8 9% 14th and 20th in the WP operations in the past 3. Rick Kelly 437 12 3% two years will see his career at the crossroads 4. Shane Van Gisbergen 274 11 3% and he needs a good season. 5. Fabian Coulthard 296 5 2% 6. Mark Winterbottom 384 36 9% Garry Rogers 7. Craig Lowndes 581 103 18% Taking on the mantle of Volvo factory team 8. James Courtney 320 14 4% after debuting 20 years ago in 1996, the 9. James Moffat 170 1 1% colourful and sometimes eccentric veteran 10. Will Davison 333 17 5% racer, Garry Rogers, is committed as much 11. Scott Pye 105 0 0 today as when he first set up his V8 team. This 12. Scott McLaughlin 111 6 5% will be the team’s third year running the Volvo 13. Michael Caruso 260 1 0.5% program and by any standard the team has 14. Garth Tander 549 53 10% done a great job since with Volvo. 15. Cam Waters 14 0 0 The signing of James Moffat should prove a 16. Jason Bright 519 20 4% positive move, as he is ready to break through 17. Todd Kelly 487 19 4% as a serious podium contender. He will add a 18. Nick Percat 79 1 1% layer of intensity to this team and give young 19. David Reynolds 201 3 2% star, McLaughlin, a reason to lift to the next 20. Chris Pither 32 0 0 level. 21. Tim Slade 217 0 0 Tekno Autosports 22. Lee Holdsworth 337 3 3% 23. Tim Blanchard 90 0 0 Since its inception in 2010 this team has been 24. Dale Wood 98 0 0 a superior performer. For the past two years 25. Andre Heimgartner 32 0 0 they have run as a single car entity and Van 26. Aaren Russell 1 0 0 Gisbergen has achieved outstanding results with a 4th and 2nd in the Championship.

To take advantage of the opportunities and manage the challenges it’s critical to choose an adviser that understands your industry – both locally and globally. KPMG has been working with dealerships like yours for 100 years. We combine our extensive industry knowledge and insights gained to help our clients address their The automotive most pressing issues and achieve their goals. To understand more about how KPMG can assist your industry is dynamic dealership, contact Aaron Street, Sector Leader, Automotive and changing on 07 3233 3138 or [email protected]. kpmg.com.au

© 2015 KPMG, an Australian partnership. All rights reserved. QLDN12646PE.

46 | MARCH 2016 | automotivedealer.com.au FEATURES Australian Automotive Dealer Association POTENTIAL NEW MONARO WOWS FANS AT DETROIT AUTO SHOW

with its handsome looks and technological advances. The seatbacks contain sensors that monitor and report on passengers’ vital signs. These sync up with a Light Emitted Rejuvenation system that emits therapeutic light to treat jetlag! The Telluride could appear rebadged as part of Hyundai’s luxury ‘Genesis’ brand.

Audi’s hydrogen-powered h-tron concept uses hydrogen to create electricity that generates 110kW in normal conditions, with the ability to apply a temporary boost of 100kW. According to Audi, it has a range of 595km, takes four minutes to refuel and goes from 0-100km/h in around seven seconds. The h-tron introduces features that will become standard on future Audis, including the ‘zFas’ he car that could possibly be the next and apply the brakes. system that “computes a model of the car’s Holden Monaro made a stunning debut surroundings in real time and makes this at the Detroit Auto Show in January. The Lincoln Continental makes its return to T information available” to autonomous systems roads this year with a 300kW twin-turbo V6. The Buick Avista concept is a sleek coupe with like piloted driving and parking. The car will a twin turbo 3.0-litre V6 engine delivering Coupes pretty much be able to drive itself at speeds up 300kW of power. Autoweek.com hailed it ‘Best to 60km/h. BMW’s M2 coupe has a 3.0-litre I6 with a in Show’. twin-scroll turbocharger generating 272kW. It Pick-ups, aka utes goes from 0-100km/h in under 4.5 seconds. Holden has not confirmed it will place its Nissan and Honda unveiled their latest badge on the two-door rear-wheel drive, but The rear-drive LC 500 from Lexus cuts explorations into the personal truck market. with V8 Commodores potentially no more back on weight via carbon fibre in the roof, The Nissan Titan Warrior concept has been after 2017, it seems a good fit to challenge the aluminium door skins with carbon-fibre inner lifted 7cm to make room for its 92cm off-road Ford Mustang. structure and a composite trunk floor. The tyres. 5.0-litre V8 from the RC-F and GS-F delivers If Holden does adopt the Avista it will not 350kW. Lexus says the 10-speed automatic The Honda Ridgeline has a conventional look. appear in Australia until 2018. shifts as quickly as a dual-clutch, also taking Inside is a 3.5-litre V6 engine with six-speed less than 4.5 seconds to go from 0-100. automatic transmission. It’s available in front- Luxury sedans a focus and all-wheel drive and is able to tow up to 2200kg with a payload of 750kg. Hyundai, Volvo and Lincoln all flexed their The Mercedes-Benz 10th-Generation E-Class is bigger than before, with a 180kw turbo muscles in the luxury sector, showing off their four-cylinder engine, advanced autonomous attempts to make their mark in the lucrative features and a new feature, ‘Pre-Safe Sound’, segment. that makes a warning noise before a likely Hyundai launched its Genesis brand at the collision, designed to prompt the ear to protect show via the G90, featuring a 5.0-litre V8 itself. Ear damage is a common result of car promising ‘refined performance’. Another accidents. option is a twin-turbo V6. Concepts, concepts, concepts

Volvo’s S90 features a semi-autonomous mode, The seven-seater Kia Telluride turned heads with the vehicle able to detect large animals

automotivedealer.com.au | MARCH 2016 | 47 SALES AND MARKETING Australian Automotive Dealer Association SALESPEOPLE: WHEN IS TOO MUCH FOLLOW-UP?

Dave Benson CEO/Sales Expert Reaching Your Potential

hen I started selling cars I was taught the ‘three strike rule’ when it comes Wto following up a customer who has enquired but is yet to purchase. This was, “Once you’ve made three follow up phone calls that haven’t been returned, cross out the customer and move on to the next one”. From my experience and research, the best the trusted source and therefore attract time to do this activity is between 9am and customers back. But others think, “Follow up, follow up, follow 10am every day. This is typically one of the up, until they tell you to rack off.” quieter periods for enquiry in your Dealership, Email is the best way to send this info, and you therefore your sales team should be free to can start by sending: But what works BEST for your sales team in allocate this full hour to follow-up. It also 2016? • comparison data seems a time for people to be available to With customers doing more and more to avoid receive your call, return a text message or reply • reviews and articles on the car of interest to an email before their day gets too busy. salespeople now, our approach to follow-up • testimonies from satisfied customers has to change from both of these techniques When I implemented this in a dealership in order to be successful. It’s not about the I managed, there were only two reasons a • Youtube videos number of contacts but, rather, the quality and salesperson was to leave their desk between method of the follow-up. 9am and 10am: • incoming and current stock options, and

Think of this: the reason you have to follow 1. There was a customer in the Dealership. • financing quotes and info. a customer up is because when they first enquired they said, “NO”; but what they really 2. They had a severe bowel problem! 3. Create urgency said is, “We don’t KNOW enough to make a During this hour you concentrate on If you want to succeed with your follow-up, decision right now”. communicating with customers via phone, you must give the customer a reason for coming back in. So therefore our focus of follow-up has text and email, whichever method of communication they prefer. to change from just contacting customers It might be notifying them of a sale event; a numerous times, hoping they will come in, to No distractions; no calls from the pre-delivery manager’s special; you’re in the neighbourhood giving the customer more information to help department or talking about who won the and can drop the car to them for a test drive; them make a decision. football yesterday – just focus on setting a wanted to let them know about some new game plan for a successful selling day ahead. stock, or have a potential buyer for their car. Here are three strategies to help your team Whatever the reason you must have a plan and maximise their follow-up in both quality and 2. Give relevant information reason for them returning to your dealership, method: otherwise your follow-up will be a frustrating Something we have always been scared to do and pointless exercise. 1. Implement ‘The Hour of Power’ is to giving customers too much information for fear that it gives them control and therefore And if you get connected to their voicemail, The concept of ‘The Hour of Power’ is a one- takes it from us salespeople. But this is old leave a vibrant message such as: “Please give hour period in your sales team’s day during thinking. Today, if we can further educate and me a call ASAP, I have some really exciting which they do nothing but follow customers resource the customer with information that news!” up in order to set appointments for the day helps them make a decision, we will become ahead. Don’t give up! REVIEWS • SOCIAL MEDIA • REPUTATION

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Ted Kowalski Contributor

ocial media sites such as Facebook and Twitter are now a norm in our Ssociety and as such it is worthwhile for businesses to have a social media policy in place. Social media policies can apply to any company-based social media site, instant messaging, etc, but can also be written to include employees’ private social media sites.

It is reasonable to provide that an employee who uses social media and who has his/her settings on ‘public’ must not: work purposes and all material posted on the as a verbal or written warning and, in some system, including emails, remains the property very serious cases, dismissal. Ensure that the • make any slanderous, derogatory, of the business. You may choose to specify that stated consequences are in line with any other discriminatory or otherwise offensive an employee may have limited personal use disciplinary policy you may already have in comments about any staff, management of the internet during non-work hours, such place. or affiliates of the business as lunch or morning/afternoon tea. Set out in the policy what you deem to be appropriate or As with the introduction of any policy, a • defame the employer on any social media inappropriate use of internet access, email or meeting should be held with staff to introduce site, and/or social media sites. them to the new or updated policy. It is recommended that you provide each employee • bring the employer into disrepute. State the consequences of breaching the policy with a copy of the policy and have them return by way of inappropriate use of social media. a signed acknowledgement confirming they In addition to the above you can provide that This may include disciplinary action such have read and understood it. where employees have internet access, it is for CITYWIDE CONSULTING FOR INDUSTRY EXPERTISE YOU CAN TRUST

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50 | MARCH 2016 | automotivedealer.com.au FLOORING, WALL PANELS AND BULKHEADS FOR COMMERCIAL VEHICLES

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They are made from ABS, a high grade plastic, with a fabric lining and wide glass windows. EDITORIAL Australian Automotive Dealer Association JIM RICHARDS AND F1S HEADLINE PHILLIP ISLAND CLASSIC

ustralia’s most versatile and most Richards will race an ex-Team JPS BMW 635 “I was the lead driver of my own team decorated racing driver, Jim Richards, coupe, now owned by New Zealand enthusiast and won two Australian Touring Car Awill be patron of the 27th Phillip Island Peter Sturgeon, in the Group C & A races at Championships.” Festival of Motorsport, from 11-13 March the Phillip Island Classic. The BMW has been 2016. painstakingly restored to the same Group C A number of other well-known racing BMWs spec that Richards raced it in 1983 and 1984. are also expected to hit the track at the Classic, Thepopular expatriate New Zealander, who including the 635 Coupe Richards drove to has called Australia home for more than 40 Richards will also bring to the meeting his own win his 1985 title. years, will mark the occasion in company with ex-Team JPS BMW M3 – a car he drove in the the Team JPS BMWs that brought him the early rounds of the 1987 ATCC on his way to On his way to victory in the famous car, he set first two of his four Australian Touring Car win his second title – while Shannons might a record of six straight ATCC round victories Championships in 1985 and 1987. also display the ex-Neville Crichton BMW and also won Amaroo’s AMSCAR Touring 635 JPS Team car that Richards also owns but Car Series, plus the 1985 Manufacturers’ and Richards has also won Bathurst seven never actually raced in the period. Endurance Series, making it one of Australia’s times and Targa Tasmania eight times most successful racing cars. winner, alongside NASCAR, GT and TCM “Thoseyears racing the JPS BMWs with the championships. late Frank Gardner are very special to me,” said Richards purchased the 635 from a subsequent Richards. owner in 1990, but passed up plans to restore Richards’ patronage coincides with BMW’s it, believing the task to be too great. The BMW 100th birthday celebrations worldwide, which “While I had already won Bathurst three times has since been painstakingly restored to its will kick off in Australia at the Phillip Island with Peter Brock, driving for Frank Gardner’s full 1985 ATCC-winning spec by its current Classic. The BMW Car Club of Victoria will JPS Team from 1984-1987 was the turning owner, Adrian Brady. put on a major display of old and new road point of my career. and racing models.

52 | MARCH 2016 | automotivedealer.com.au EDITORIAL Australian Automotive Dealer Association

Famous F1 cars to race Association regulations before it was acquired events for racing cars built from 1970-1985. 10 years ago by the Wareings, who have since Here, its principal F1 rivals will be the Two famous Formula 1 cars with unique raced it in HGPCA events, Historic Monaco 1971 March 741 to be raced by four times Australian connections will compete at the and the Goodwood Revival. Australian Champion, John Bowe, and the Classic, thanks to their enthusiastic UK 1985 ex-works Lola 1.5 Turbo of Sydney’s Iain owners, Andrew and Margaret Wareing. TheBRM has also been driven in recent years Ross. by Sir Jackie Stewart in demonstrations. From the 1960s comes the works 1.5 litre BRM Record entries P261-5 that was raced by Graham Hill, Ritchie TheWareings are also bringing their famous Ginther and Jackie Stewart in Formula 1 from Williams FW06 to Phillip Island – the first Organisers have received a record-matching 1964. Later, factory-fitted with a larger 2.0-litre car produced by the combination of Frank entry of more than 540 Historic touring, sports V8 engine, the same car contested the 1965, Williams and Patrick Head for their Williams and open wheeler racing cars spanning eight 1966 and 1967 Tasman Championship in Grand Prix Engineering Formula One team. decades. Australia and New Zealand with Stewart and Richard Attwood. Powered by a Cosworth DFV 3.0 litre V8 Theevent has attracted over-capacity fields engine and driven by Australia’s Alan Jones, for Touring Cars, Production Sports Cars and Driven by Graham Hill, the car’s best F1 result the FW06 competed as a lone Williams works Historic Formula Ford open wheelers. was second in the 1964 French Grand Prix, entry in all 16 rounds of the 1978 FIA World while in 1966 it scored five race victories in Championship. It finished in the points three Therecord 58 races for (a record) 12 Historic the 1966 Tasman Series, with Stewart taking times, with Jones’ best result being second categories will be held from early afternoon four of its race wins to clinch the eight-race place in the US GP at Watkins Glen. on Friday March 11, with the final event Australian-New Zealand Championship. late on Sunday. Because of the huge entry, Andrew Wareing will drive both the former there will be no time for the circuit parades Following its F1 era, P261-5 was fitted with F1 cars at the Classic. The BRM P261-5 will and demonstrations that have been a part of a 3.0-litre BRM V12 engine and driven in compete in Group M & O events for open previous Phillip Island Classic FOM meetings. non-Championship races in 1968/69 by David wheelers from 1961-1970, where one of its Hobbs, Tony Dean and Charles Lucas. main rivals will be another great F1 car of the Feature races will include a 10-lap event for 1960s – the 1968 2.5-litre Repco Brabham V8 Historic Touring Cars on Saturday afternoon Afterspending some years in a Museum in the of Victorian Peter Strauss. and similar 10-lap sprints for ‘big banger’ UK, the BRM was returned to its original 1.5 sports cars and open wheelers on the Sunday litre GP spec to meet Historic Grand Prix Cars TheFW06/03 will compete in the Q & R afternoon. Control the ads on your used car listings. Our new Platinum Package gives you control over the ads on your used car listing and gives you access to 100% of finance enquiries. All this capped at $39.95 for the lifetime of the listing. Smart listings

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Call our Dealer Customer Service team on 1300 662 133 to find out more. EDITORIAL Australian Automotive Dealer Association NEXT GENERATION OF AUTO ENGINEERS ON DISPLAY

he next generation of automotive engineering talent strutted its stuff at Tthe recent Formula SAE-A University Challenge at Calder Park Raceway, Melbourne.

Competing against a record 30 team entries comprising 700 students from universities throughout Australia, New Zealand, India, Malaysia, Japan and USA, the Monash University team won the overall trophy for the seventh consecutive year.

Australian university student entrants have been outstandingly successful since the competition’s inception on 2001 with the Monash University team standout winners having taken the overall winners’ trophy for the seventh year in succession. A team from Thefinal test, worth the most points in the Looking to the future the University of Melbourne finished second, competition, is a grueling 22km time trial that An electric vehicle section commenced five with the University of Canterbury (New tests the limits of the machine and the driver. years ago to encourage university research and Zealand) third. Fuel economy/CO² emissions are tested in relation to the design in today’s economy. development in the ‘Mobility for Tomorrow’. Thestudents are studying a range of The development from just two entrants in disciplines, such as mechanical engineering, From design to production 2010 to six in 2015 reflects the exciting growth in this technology. The electric vehicle winner electrical engineering, informatics, Students source sponsors, establish budgets, mechatronics, management, business studies this year was RMIT University, making it five project manage and develop business plans wins in a row in this section. and marketing. and detailed market strategies. They present their entire case to a judging panel or board of Event organiser, The Society of Automotive Build a car in a year industry experts to convince them the design Engineers – Australasia (SAE-A), Formula SAE-A is part of the Formula is a profitable investment. Strict guidelines encompasses a large spectrum of Australasian Student international competition in which and rules for the Formula SAE-A event mobility, including aerospace, light and heavy students are required to design and construct cover more than the design of the car and rail, heavy commercial transport, construction a single-seater prototype race car within a include accurately costing the construction equipment, agriculture, mining, caravan, 12-month timeframe, using either an internal with an objective to substantiating a case for aftermarket and the service and repair of on- combustion engine of no more than 600cc or, economical or cheap (theoretical) production. and off-road vehicles. alternatively, an electric motor of no more than Thecompetition runs over four days, with the “Students participating in the Formula SAE-A 85kw. first two set aside for registrations, team and event are always keenly sought after by Judging driver briefings and static events. Days three industry on graduation. These students gain and four are intense, with every aspect of the such broad ranging skills from participating Vehicles are carefully scrutineered for vehicle’s engineering compliance, track testing that they are virtually industry-ready at the compliance to Formula SAE-A’s stringent plus an autocross event, where the skills of the end of their studies and are able to contribute construction guidelines and all safety aspects driver and the ability of the vehicle are tested. in a wide range of industries,” said SAE-A surrounding motorsport racing, including President Adrian Feeney. Theaerodynamics of the vehicle play an stability, must be passed before they are cleared important part and regulation changes prior “2016 has once again demonstrated the to proceed or enter the race track. to this year’s event meant that rear wing amazing talent of young engineering students, Once scrutineering is completed, a series of endplates had to be in line with the inside of many of whom will go on to make valuable dynamic events are conducted, including an the rear tyres. In previous years teams were contributions in a wide variety of industries acceleration test over 75 metres, figure-eight allowed to have rear wing endplates in line both within Australia and internationally.” maneuverability, and a single lap time trial of with the outside of the rear wheels. the course in reverse. We know you finance cars every day. But what happens when the deal doesn’t fit? Test drive Liberty’s flexible motor loans to help you squeeze in more deals! To experience our difference today, click on our ad or call 1300 888 311. liberty.com.au

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