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2 | AUTOTALK APRIL 2020 | www.autotalk.com.au NEWSTALK GUMTREE CARS MOVES TO SUPPORT AUSTRALIAN DEALERS

umtree Cars is launching new Cars for free for the month of April, we dealer support measures in light of are demonstrating our commitment to Gthe Covid-19 pandemic. supporting our dealers, whilst creating The move comes as eBay Classified connections and delivering reach. Group’s Global Motors business initiates Gumtree Cars will continue to assess similar measures around the world. market conditions based on government To provide substantial financial relief and updates and dealer feedback and conduct support for new and existing partners, a review at the end of April. As the Gumtree Cars launched a robust future of the automotive industry and the programme of dealer initiatives. These ramifications of the crisis remain unclear, measures are aimed at increasing dealer Gumtree Cars is committed to going visibility at a time when digital is more above and beyond by providing ongoing Richard Dicello important than ever in the car sales customer service and sales support for its journey. dealership network. Gumtree Cars, will: • Waive all subscription fees for new and existing partners for the month of April. “We understand the • Remove all listing overage charges impact the crisis is having for the month of April, meaning that on all businesses, including dealers can list their entire vehicle inventory for free. car dealerships. By offering • Extend current partner payment terms our new and existing for March invoices, from 30 to 60 days. Support has been put in place for dealers partners the opportunity to list their entire stock on Gumtree Cars, to list their entire stock without any added investment. This allows for a digital extension of dealerships and on Gumtree Cars for free ensures Gumtree Cars’ partners remain for the month of April, we visible and able to generate connections are demonstrating our to potential buyers when they need it most. commitment to supporting To maximise the benefit from the relief, our dealers, whilst creating dealers should keep their current inventory online and prioritise adding unlisted connections and delivering vehicles to the site says Gumtree Cars. reach." This means they will remain visible for future customers, laying the foundations for a buoyant recovery. “While Australia’s dealerships are dealing “Gumtree Cars’ commitment to dealers with the significant uncertainty around the remains unwavering during these longevity of the COVID-19 crisis and its uncertain times,” Gumtree Cars’ head of potential long-term impacts, we want them motors Richard Dicello says. to know that Gumtree Cars will continue “Our large-scale financial support aims to to support their businesses. Gumtree Cars alleviate some of the burden put on the is people-powered, meaning we always automotive industry at this time. put our partners first, and we will continue “We understand the impact the crisis to do so during these difficult times, and is having on all businesses, including beyond,” Dicello says. car dealerships. By offering our new Further details regarding the relief and existing partners the opportunity support are available from the Gumtree to list their entire stock on Gumtree Cars Account Management team.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 3 AutoTalk Magazine and autotalk.co.nz are published by Auto Media Group 8/152 Quay Street, Limited. P.O. Box 10 50 10, Auckland City, 1030. Ph. 09 309 2444

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BUSINESS MANAGER Van buyer narrowly avoids Dale Stevenson 021 446 214 [email protected] invoice scam GROUP GENERAL MANAGER Deborah Baxter Sydney-based car-broker who had Westpoint Autos group fleet manager 027 530 5016 his licence suspended in 2019 by Ben Maslen says the buyer was about [email protected] AFair Trading NSW for allegedly to transfer $37,000 into an ING account stealing money from clients, has alleg- allegedly for the purchase of a new PUBLISHER / CHAIR edly resurfaced and is allegedly invoicing Hyundai van. Vern Whitehead clients for cars and not delivering the Maslen says this invoice (which Autotalk 021 831 153 vehicles. has sighted) to the buyer is fabricated [email protected] Autotalk has been contacted by a reader and false and he assumes the details of who alleges that Shervin Kalimi of Cars & the vehicle were taken from a national Auto Media Group Limited makes every endeavour Co whose dealer licence was suspended website. to ensure information contained in this publication is accurate, however we are not liable for any losses by Fair Trading NSW in July 2019, has “The car is our car, for sale in Queensland, or issues resulting from its use. since resurfaced as Shervin Chadorchi the dealers’ licence number is a made up Annual subscription: $84 + gst ($96.60) trading as The Car Buying Agency, and one and the ABN is for a Hyundai dealer

Printed by: Alpine Printers. is taking money from buyers and not in Windsor NSW. This buyer was within delivering cars. minutes of transferring the funds before Antonio Settimo says he believes he has we notified them of the situation,” he says. been scammed as he paid Chardorchi Maslen says he has notified Fair Trading $36,500 for a Calais V Tourer for delivery NSW and has been advised by a senior in February and has not received a receipt investigator that they are following up autotalk.co.nz for payment or the car. the matter. autotalk.com.au Settimo says Chadorchi told him all “NSW Fair Trading is investigating several transporttalk.co.nz manner of excuses as to why the car is not complaints relating to the Car Buying being delivered. Agency Pty Ltd. As the matter is ongoing, futuretrucking.com.au A van buyer from New South Wales no further comment can be made at this evtalk.co.nz narrowly avoided transferring funds on an time,” a spokesman for the agency says. evtalk.com.au invoice which names Shervin Chadorchi The spokesman says If consumers have wheeltalk.co.nz as a fleet salesperson, when he tracked any concerns with their dealings with the identicar.co.nz the dealer down (through the vehicles VIN trader should lodge a complaint with Fair number) in Queensland and asked when Trading at www.fairtrading.nsw.gov.au. the vehicle could be delivered.

4 | AUTOTALK ARPIL 2020 | www.autotalk.com.au NEWSTALK GOVERNMENT SUPPORT IS NOT A LEVEL PLAYING FIELD he COVID-19 public health issue doesn’t,” he says. not qualify for support under the current has impacted more heavily on the “March is usually a good month for new JobKeeper thresholds. Tautomotive sector than the Global vehicle sales as orders placed in January He also notes that VACC research indicates Financial Crisis, but members of the industry and February are delivered, but sales this that approximately 70% of Victorian say while the current commonwealth and year will certainly fall against the previous franchise dealers will not qualify for the state government support initiatives are year as we saw a significant decline in state government’s $500 million business welcomed, some businesses unfairly fall the last two weeks of this month, and the support fund or the payroll tax waiver. outside the qualifying criteria. worst is yet to come.” “Our members are trying to get their heads One issue that the Regarding to better legal protection around the JobSeeker and the JobKeeper Australian Automotive for new car franchises in the wake packages which are yet to be passed into Dealers Association of the shutdown and the law, but it’s a brave political and fiscal move (AADA), and the announcement by by the Australian government to maintain Victorian Automotive of its proposed agency-model the employee base and provide a huge Chamber of network restructure, Voortman safety net to stop unnecessary layoffs and Commerce (VACC) says in the current climate it will be redundancies,” he says. strongly agree upon, difficult to get Canberra to focus “The commonwealth government has is that government’s on this. done the right thing - it’s going to save focus upon revenue The association would like to see a lot of jobs, especially as there is such thresholds for the James Voortman better protection mechanisms for a narrow skills base in the automotive support packages franchise dealers similar to the US sector and the gaps are a challenge to fill. does not recognise that in the automotive market, and Voortman says in the coming “If we lose an apprentice, it takes up to industry – turnover does not equate to weeks: “We will pick our moment to talk seven years to fill that gap. There is four profit. to the relevant politicians and government years of training and then at least another AADA’s James Voortman says that departments on this particular issue.” couple of years for the person to become although in principle many dealers have competent and mature in their role. welcomed the news of the governments Every automotive business can be open Employers wait a considerable time for a JobKeeper package, they are waiting to see for business return on their investment,” Gwilym says. how the Treasury and the Australian Tax Victorian Automotive Chamber of But he also notes that dealerships in Office (ATO) will implement and structure it. Commerce (VACC) executive director are struggling, the decrease in The government says that employers Geoff Gwilym says the argument about sales, finance contracts, service bookings with an annual turnover of $1 billion or automotive businesses being and retail parts sales are hurting. more would be required to demonstrate a an essential service is now Gwilym also says a regular weekly survey reduction in revenue of 50% or more to be redundant. of more than 70 VACC members eligible, and Voortman says the association “The government showed that retail sales in one week feels that criteria is too harsh particularly for has not asked any dropped by 53% post March 16, the larger motor vehicle dealership groups. automotive business and on average the dealerships “There are less than 10 dealership groups to shut down, had seven fewer services each that would have such turnover, and two are so therefore any day, and retail parts were down listed companies, but under the criteria, automotive business 52%. VACC expects its new weekly they are going to feel more exposed, can be open for data to become significantly worse Voortman says. business,” Gwilym says. before it gets better. “If they cannot prove a 50% reduction in But Gwilym notes that Geoff Gwilym turnover, then under this scheme there there is a very cyclic Small business owner welcomes will be no support for their employees. We environment in Victoria, and he says that JobKeeper package believe that turnover is a poor indicator of government announcements in one week The Garage Woodend proprietor Andrea the health of the motor vehicle industry will determine how many vehicles come in Matthews says the government’s because the margins on new vehicles are for service and repair in the following week. announcement of the JobKeeper package razor thin. Gwilym says the automotive sector bodies was welcome news amongst a rollercoaster “A Deloitte report tells us the average new such as VACC and the MTAA played a large of issues she felt she was facing. vehicle margin was 0.9% and also that role in lobbying government for the support “The JobKeeper package takes away the 30% of dealers were making a loss in 2019. package and there was significant dialogue number crunching and the guesswork Margins have been decreasing for the last about small medium enterprises as well as around the future and its gives us the four years and we have grave fears for the the large dealerships. assurance that we don’t need to resize the future of the industry. "He echoes the sentiment from AADA that business,” Matthews says. “The government should not differentiate turnover does not equate to profit. “We can keep paying the staff, and more between who gets support and who "Some larger dealership groups may Continued on page 6

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

Continued from page 5 importantly we can keep our staff. We’re with the advent of the drought, Another issue affecting a family business that’s been building up bushfires, smoke haze, public health and safety is a solid team of technicians for the last six and now the COVID-19 the ongoing Takata airbag years, and to have the rug pulled out from pandemic, the last 12 replacement programme. underneath us due to this crisis would be months have been tough for Weber says manufacturers terrifying. the motor vehicle industry. want to remind customers “At the moment we have a relatively solid Weber says support for all is an ongoing exercise and diary of bookings, there’s a week’s worth sectors is being announced there are many outstanding ahead of us, but normally we have more by government on a daily vehicles which need to be than two weeks of future service and repair basis and there’s a raft of presented to dealerships. Tony Weber work booked in. things coming through at both He says many dealerships “So yes, the current situation has definitely commonwealth and state levels. of the brands impacted by the Takata had an impact on us, but I think it’s been The FCAI will continue to monitor the airbag recall are open and able to make more significant on others, particularly in stimulus packages as they roll out. the necessary arrangements with vehicle the metro areas of Melbourne, although “The $130 billion assistance package owners to replace faulty airbags. I’m pleased to say we had more inquiries recognises the impact of COVID-19 on Australians have made more than yesterday than we did all of last week, industry but also the economy and how 10.1 million vehicle checks on www. which is a positive sign." well we will bounce back from this. We ismyairbagsafe.com.au and more than Matthews notes that the COVID-19 crisis think the package is beneficial to Australia 1.6m vehicles had been found to be has impacted the price and supply of parts. and the economy as we go through this equipped with faulty airbag inflators. She says that some OEM dealerships extremely difficult period. Weber says the automotive industry which she buys genuine parts from have “Everyone needs to recognise that has rectified more than 2.59 million been cutting back on their hours of COVID-19 needs to be addressed as a vehicles affected by the airbag recall. operation and the number of deliveries public health issue, and the government A further 206,840 vehicles had been they will send out in a day. is trying to put the structural foundations identified as unreplaceable as they are in the economy and society to allow us to no longer operational. This represents the Public health issues return to normal. As a sector the motor processing of more than 91% of vehicles Federal Chamber of Automotive Industries vehicle industry needs to be front and affected by the compulsory recall. (FCAI) chief executive Tony Weber says centre of that bounce back,” he says. ALICE ALICE ALICE ALICE MAKE BETTER ADVERTISING DECISIONS. SELL MORE CARS. GENERATE MORE PROFIT.

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

AUTOCARE 2020 POSTPONED

utocare 2020, Australia’s larg- Friday and Saturday, 30 – 31 October Hosted by the AAAA, the outstanding est education and training led 2020. The convention location will remain Autocare 2020 program will continue to Aautomotive convention has been at the Brisbane Convention & Exhibition provide industry leading speakers and postponed. Centre. exhibitors and address the latest global The escalation of the Coronavirus “The AAAA takes the health and safety of trends in the aftermarket industry. (COVID-19) health crisis has triggered an our members, staff and event sponsors, “We acknowledge the significant unprecedented government and public exhibitors and speakers, very seriously commitment by speakers, sponsors and response. The current circumstances and as a result we have made the difficult exhibitors and share our appreciation have led to the status of Autocare 2020, decision to postpone Autocare 2020,” for their patience as Autocare 2020 and the original date of 19-20 June 2020, said Stuart Charity, CEO of the AAAA. arrangements pivot to meet the new needing to be urgently re-evaluated. “The new dates will allow Autocare 2020 dates. The Australian Automotive Aftermarket to run at a time that provides the best “With the support of event organiser Association (AAAA) Board of Directors opportunity for our industry and the wider International Exhibition & Conference held a special meeting on March 16 to community to enjoy this fantastic event, in Group, and the auto aftermarket fully consider options for the Autocare a safe and healthy environment.” community, we can look forward to 2020 convention. After a thorough All Autocare 2020 conference stream bringing the industry together in October. evaluation, the decision was made to registrations, exhibitor and sponsorship We thank you in advance for your support postpone the event. commitments will roll over to the new and understanding at this difficult time,” The rescheduled Autocare dates are Autocare 2020 dates. said Stuart.

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

MAZDA MASTER DEALERS ANNOUNCED

azda Australia has announced Dealer status every year since the whose passion and commitment is critical the recipients of its 26th annual programme’s inception. to the success of Mazda Australia,” he MMazda Master Dealer Excellence Queensland’s Grand Prix Aspley says. Awards programme. achieved its 23rd and Victoria’s Established in 1994, the awards recognise Ringwood Mazda its 22nd award, while 2019 Mazda Master Dealers: dealers in the Mazda Australia network West Australia’s Wanneroo Mazda and Wippells Autos, QLD that deliver excellence and exceptional Burnie Mazda celebrate their first year as Mareeba Mazda, QLD customer experience. a Master Dealer. Grand Prix Aspley, QLD Recipients are determined through Mazda Australia director of sales Jarrod Nowra Mazda, NSW an exhaustive assessment of key Gieschen says Master Dealer status Ringwood Mazda, VIC success factors, including dealer is highly coveted among the dealer Mawson Lakes Mazda, SA facilities, business processes, people network. Frankston Mazda, VIC development, sales results, financial “The Master Dealer programme each Mount Gravatt Motors, QLD management and customer satisfaction. year advances the benchmark for Penrith Mazda Centre, NSW Sixteen dealers from across Australia business excellence and customer South Morang Mazda, VIC were awarded the prestigious title of service among the network, driving Ballarat Mazda, VIC Master Dealer for 2019, including a constant innovation and putting renewed Wide Bay Mazda, QLD number of repeat winners. focus on Mazda’s customer-centric Bendigo Mazda, VIC Wippells Auto from Queensland notched approach,” Gieschen says. Burnie Mazda, TAS up its 26th consecutive award, and is “The Master Dealer programme is a Parkland Mazda, WA the only dealer to have achieved Master chance to celebrate the dealer network, Wanneroo Mazda, WA.

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

FORD CELEBRATES TOP 10 ACHIEVING DEALERSHIPS

“Ford and our dealer network share a commitment to making sure every interaction with the customer counts, from before a purchase to servicing a vehicle and repurchase. As we keep striving to do more for our customers, it’s great to see these dealers leading the Kay Hart way. “These efforts also translated to Ford tying to rank the highest for the JD Power 2019 Australia Sales Satisfaction Index (SSI) Study. Independent research data such as this from J.D Power really demonstrates the collective efforts of all our dealers to offer fantastic customer service,” Hart says. With a score of 835 out of 860 points, the 2019 result saw Ford tie to rank the highest among mass market brands for elebrating the top 10 achieving dealerships across its sales satisfaction. Ford’s result led to a maximum Power Circle national network, has announced its 2019 Rating of five, which J.D. Power rates as “among the best”. CDealer Principal Gold Master winners. One NSW, one QLD and eight Victorian dealerships were recognised as Gold Master Dealerships following a review of all aspects of their businesses, including customer satisfaction in sales, service, parts processes, staff training and performance. The Gold Master Dealership award recognises top achievers in the Ford Guild, a national program to recognise and reward on-going achievement for the combined efforts of sales, service • NZ’s number one automotive workship and parts and their commitment to “Go Further”. management software for over 25 years. It also recognises the commitment of each dealership to the training provided by the Ford Academy in relation to product • The ultimate specialist workshop software knowledge, processes and professionalism. package The 2019 Dealer Principal Gold Master winners are: • Costa Pappas, Motorama Ford, Moorooka, QLD • Cloud-based and hosted options available • Geoff O’Connell, Kinghorn Motors, Nowra, NSW • Installation, Configuration, Support and • David Blackwood, Bayford, Epping, VIC • Matthew Fraser, Jefferson Ford, Mentone, VIC Trainer from the industry best • Tim Harkness, Courtney & Patterson Ford, Heidelberg, VIC • Range of options from the entry level lite to • Nick Dempsey, Sunbury Ford, Sunbury, VIC the all-inclusive Elite • Marcus Norton, Norton Ford, Stawell, VIC • Paul Biti, Biti Motors, Culcairn, VIC • Jon Wainwright, Coffey Ford, Dandenong, VIC • Cameron McLeish, Freeway Ford, Cranbourne, VIC Ford Australia president Kay Hart says the Gold Master Dealerships excelled in all areas by focusing on exceptional customer service. “We know that it isn’t enough just to have world-class vehicles Contact Details: in our dealerships; we need to offer our customers service to match at every step of the ownership experience,” Hart says. P: SAM Admin +64 9 583 2451 “Each of our 2019 Gold Master Dealerships had outstanding SAM Support +64 9 583 2455 customer satisfaction scores, and we really saw the effort our E: [email protected] winners put into truly understanding their customers’ needs.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 9 DEALERTALK

COX AUTOMOTIVE LAUNCHES COVID-19 DEALER ASSISTANCE PROGRAMME

ecognising that the next couple All dealer data distribution charges will be Kelley Blue Book is offering free access of months are going to be tough discounted by 25%. This will apply to the to MarketLens during April 2020 as well Rfor the motor vehicle industry, Cox April and May invoices automatically. as Lead Driver free for 30 days. Automotive Retail Solutions is launching a Digital advertising agency Digipurple will “Our Lead Driver product does exactly as Covid-19 dealer assistance programme. help dealers communicate and engage the name suggests – it allows customers with customers with campaigns designed visiting your website to obtain a valuation to drive contactless online and phone for their car using Kelley Blue Book data. interactions. It is a valuable way for dealers to collect “We have several dealer groups who customer data for leads,” Sommerton have already changed their strategy says. to new campaigns designed around Online deposits in partnership with contactless home delivery for service PayPal will be free for 30 days. and sales. As well, ealers are also “Our partnership with PayPal allows promoting the new increased ABN for online deposits to be taken directly tax deduction and other tax benefits,” on your website. Dealers can use this Sommerton says. function to help drive online sales,” Michael Sommerton Digipurple will be offering: Sommerton says. • 50% discount across all creative fees. “We've partnered with Autotrader to The Cox Automotive Retail Solutions • No cost on any Covid-19 updates on bring you 50% off on all listings fees business in Australia comprises Dealer your website. for two months during April and May Solutions, Digipurple and Kelley Blue • 50% off on all campaign management 2020. To access this assistance option, Book. The company has looked across fees. please contact your Autotrader account its product portfolio to offer dealers • All campaign set up fees will be manager. assistance to reduce costs and help sell removed. cars. • Full time consulting on the best direct “We mean it when we say we are here communication and engagement with "All dealer data to help. We will continue to work hard customers online and over the phone to help the industry get through this is available. distribution charges impact and we are still working on other “We highly recommend continuing ways we can help so stay tuned. We digital campaigns to communicate with will be discounted by value your partnership and we will stand customers and mitigate service and sales 25%. This will apply with you to get through this stronger,” losses,” Sommerton says. Cox Automotive Retail Solutions chief “Our professional photography services to the April and May executive officer Michael Sommerton still continue to visit dealerships taking says. extra sanitising and social distancing invoices automatically." “If you don't have a Dealer Solutions precautions. If our photographers are Modular website and would like to access unable to visit your dealership and these tools, you can switch to us and we services are suspended we will offer our “This will provide you with an ongoing will waive all setup costs and get your mobile photographer app for free,” he presence on Autotrader and CarsGuide, new website live asap,” he says. says. along with free placement on Facebook For the months of April and May 2020, Dealer Solutions Photography is offering Marketplace, providing access to chat, Cox Automotive Retail Solutions, together free access to the mobile photographer SMS, phone, email and walk-in enquiry. with Autotrader will also provide the app and free access to the new car image With all of our listings capped, if your following assistance packages to help library. It will be extended for used cars inventory takes longer to sell, there is no dealers through this time. very soon. charge beyond the cap,” he says.

10 | AUTOTALK APRIL 2020 | www.autotalk.com.au DEALERTALK Partnership brings BNPL to 60% of Australian franchise dealers

uy Now Pay Later (BNPL) supplier UltraTune, Battery World, Iconic Detailing, “Pentana Solutions’ dealers service Openpay has signed an initial Mr Tyre and Rapid Tune. more than 4.2 million vehicles per year, Bthree-year exclusive deal with Currently Openpay services more than equating to around $2.5 billion in annual dealer management system provider 1000 Australian dealerships directly, servicing value. Integrating Openpay into Pentana Solutions. 600 of which are currently customers eraPower means dealers can simply and The partnership has been designed of Pentana Solutions. Those dealers easily activate a plan for their customers to bring quantifiable benefits to new will have the option to automatically roll at the point of sale. It has been our car franchise dealerships and their over to the fully integrated system upon experience that dealerships offering customers. deployment. Openpay as a payment option see Pentana Solutions has access to more The partners will co-market BNPL average requisition order increase from than 2500 new car franchise dealerships services to the remaining 1900 Pentana $450 to $950 per customer,” says Eidel. across Australia through its dealer dealer customers inviting them to opt “Any new partner that is embedded into management system called eraPower, in to Openpay as their exclusive BNPL Pentana Solutions eraPower system is which equates to approximately 60% of provider. carefully selected to bring quantifiable the domestic market. BNPL plans provide consumers with benefits to our customers,” says Pentana Those new car franchise dealerships a tool that can assist with cashflow Solutions chief executive officer Steve include well-known companies such as management or to navigate through times Kloss. AP Eagers, AHG, Inchcape and Peter of unexpected purchase requirements, “Openpay offers a flexible product Warren. such as the need for new tyres or parts delivering higher value plans at attractive Openpay is an Australian stock “Often motorists are caught in need of terms for our dealers and for dealer exchange listed company, and it has servicing or parts that they did not plan customers who are asking for BNPL a specialist merchant focus on the for in their cashflows. For that reason, solutions. Openpay helps customer automotive, healthcare, and home we have seen growing interest in our better manage their cashflow and improvement sectors. It offers payment automotive BNPL plans – people are budget around car servicing. We expect plans up to $20,000 from two to 24 using Openpay to solve their immediate this partnership to increase profitability months. need, such as a car service or a set and customer retention amongst our Current automotive merchants include of new tyres, then paying it off over a dealership partners,” he says. some Jax Tyres & Auto and Mercedes- timeframe that suits their budget,” says The integration of Openpay into Benz dealerships, as well as well-known Openpay chief executive officerMichael eraPower is expected to commence in Q4 retailers such as LSH Auto, Nova Tyres, Eidel. FY20. MAYNARD TAKING THE SALES HELM AT JAGUAR LAND ROVER

aguar Land Rover Australia (JLRA) suited to take on the responsibility of that currently prevail,” Maynard says. has appointed Scott Maynard as the leading the JLRA sales team during these “I look forward to doing all that I can Jcompany’s new sales director from times of challenge and future opportunity. in making a contribution to the JLRA May 1, 2020. “Scott brings with him into the new role network and to assist managing director Maynard moves to the new position a deep understanding of JLRA Mark Cameron in leading our from his current role as JLRA customer at a senior level and also business through the next service director which he has held since commands great respect period and then into the 2016, he also had a six-month stint as from our retailer network,” future,” he says. acting sales director in 2017/18. JLRA says. Maynard will start his JLRA says Maynard has made a “This industry challenges, transition between the significant contribution to the success rewards and inspires two functions in April, of its customer service division. Prior to like no other and I feel a replacement for the joining JLRA, Maynard previously spent fortunate to have worked customer service director 10 years at Audi Australia and was the in and around it for 28 role will be the subject of a general manager for sales for four years. years, however we have not future announcement. The company says he is therefore ideally seen conditions such as those Scott Maynard

AUTOTALK APRIL 2020 | www.autotalk.com.au | 11 NEWSTALK

POTENTIAL BUYERS RELUCTANT TO HAND OVER PERSONAL DETAILS

Shaun Cornelius Lee Reynolds

t goes without saying that converting unannounced rather than giving my variety of contact methods, especially online leads into sales is the objective contact details before I visit.” among younger buyers and intenders. Iof any classified auto marketplace. With so many buyers and intenders For example, 60% of intenders aged Research commissioned by Autotrader, reluctant to give out their details, how can 45-69 agreed or strongly agreed with however, vividly illustrates why con- dealers better reach them? It turns out the statement “When I’m looking to buy ventional wisdom about how best to that catering to this preference for walk- a car, I prefer to have a wide range of achieve those sales may be wrong, ins doesn’t just make potential customers methods for getting in contact with car while also pointing the way to better happier, it increases the chances of dealerships” (examples included “email, and more effective sales channels. converting leads into sales. phone, visit in person, text message and Autotrader is notable for its “open” model For example, the survey found that chat via web site”). However, that figure that allows customers to immediately 63% of buyers bought their car after leapt to 74% in the 20-44 age range. access the dealer’s location and contact dropping in unannounced, compared It seems fair to assume that in coming information. New research conducted to 37% who had given their details years, as “digital natives” age, customers by marketing research firm FF2, Sydney, first. These figures take on even more will increasingly expect the sort of makes the benefits of this model significance when you consider that features, such as text and web chat. immediately apparent. walk-ins account for 34% of all sales Says Shaun Cornelius, CEO at Cox Perhaps the most glaring finding was that, conversions, as compared to only 17% Australia Media Solutions (including of the 511 auto buyers and 489 intenders for previous phone or email leads. CarsGuide & Autotrader), “Consumers surveyed, 86% of the total agreed or In short, walk-ins are vital and are using a wide range of methods strongly agreed with the statement, “I encouraging them should be prioritised. to communicate with each other, so it prefer to choose when and where I give Lee Reynolds is the Portfolio Manager at makes sense that they want these same my contact details rather than being AP Eagers. His observations of customer methods to connect with dealerships. forced to provide my details.” behaviour tally with the survey’s findings. "We believe that if you allow a consumer The reluctance to share details was “We transact with customers every day, to connect with you via their preferred rooted in one overwhelming factor: 72% all across Australia. They tell us that they method, then you're bringing them of the sample group agreed or strongly want it to be easy. Some customers don’t into the sales funnel on their terms, agreed with the statement, “If I leave my like to give their name and details straight heightening the chance of a sale.” personal contact details before I have up, they just want to know where the car The way consumers engage with dealers visited, I worry that the dealership will is. Autotrader lets the customer know is rapidly changing. Autotrader's model keep hassling me.” exactly where to find us, in their time, in is designed to help future-proof online Furthermore, 74% agreed or strongly their way.” auto classifieds by providing a customer- agreed with the statement, “When I To encourage walk-ins, Autotrader also centric sales model that is, ultimately, a first visit a dealer, I prefer to drop in found a strong preference for a wider win-win for dealers and consumers.

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

JAX REBRANDS AND FOCUSSES ON EV FUTURE

n Australian mechanical service customer-focused values. franchise network,” he says. provider and tyre retailer is “Many customers weren’t aware that 45% A focus on internal learning and Arebranding itself to better reflect of our business is fast-fitting mechanical. development for all team members its offer which will include electric vehicle They were introduced when we fitted out to maintain retail, customer service (EV) service and maintenance in the near new tyres and provided a complimentary and mechanical best practice, means future. JAX Inspect safety report capturing our the training facility will enable unique Founded in 1949, JAX Tyres has suite of services,” Grossrieder says. upskilling opportunities for JAX rebranded to JAX Tyres & Auto because So, there was a clear need to put mechanical teams, ensuring the network the majority of its customers were ourselves on the front foot, align our is ready to leverage evolving automotive unaware that 45% of the company’s brand with our full business model and technology, particularly in the electric business is fast-fitting mechanical items. give customers more transparency. vehicle market. JAX Tyres & Auto has more than 86 “The new identity, look and feel aren’t “A major focus for our business is to do stores nationally, integrated with an superficial changes. JAX Tyres & Auto what we do really well while also staying e-commerce platform to deliver full fully embodies where we are as a ahead of industry evolution,” Grossrieder automotive mechanical servicing and business now, through our peace of mind says. sales of tyres, wheels, brakes and driving promise to our customers and our “From a strategic perspective, this will suspension. agile retail and mechanical ecosystem include integrating electric vehicle service The updated brand position coincides facilitated through our best-in-class and maintenance across our national with the opening of network, with the aim to the company’s new have all stores electrified headquarters in Crow’s in five years.” Nest, Sydney. An in-house JAX Tyres & Auto will also training facility replicating be rolling out multiple a JAX bricks and mortar stores nationally this year. store, complete with “We’re in a strong TouchPoint interactive position for sustainable touchscreen technology business growth and modern equipment, and we look forward has been constructed to this enhanced onsite. direction energising JAX Tyres & Auto chief our relationships with executive officerSteve customers, franchise Grossrieder says the brand network, globally change better articulates all ranked suppliers facets of the business and and stakeholders,” encapsulates the brand’s Grossrieder says.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 13 AFTERMARKET

Parts & Accessories Arntz Optibelt releases new EPDM cogged v-belts

ptibelt’s new Super XE-Power downtime, improving drive efficiency, suitable for back bend idlers, paving the Pro M=S cogged V-belt has a and increasing belt power capacity by way for the construction of ultra-compact Oredesigned moulded cogged up to 20% over other high-performance drive units. profile which greatly improves durability, cogged v-belts. According to Optibelt, the unique power flexibility and power transmission, open- The newly developed tooth shape ratings achieved by the Super XE-Power ing up new opportunities in the field of makes it possible to use pulleys with Pro M=S cogged v-belt are the result of friction drives. extremely small diameters. exceptionally powerful and low-stretch The high modulus cords allow the v-belt The Super XE-Power Pro M=S cogged cords used in conjunction with a tooth to be totally maintenance free, reducing v-belt also has the advantage of being form optimised for dynamic loads. The red cushion compound gives a perfect adhesion for tension cords and high load capacity. The EPDM transverse fibre laden compound gives the belt an operational temperature range of -40°C to +120°C and it runs extremely quietly From Roadside Assistance Supplier and smoothly - even at high speeds. The v-belts can be used unmeasured to Solutions Partner in sets as it has the narrow length 365RoadsideAssistance.com.au tolerance of Optibelt M=S (no matched sets are needed). Your business can now connect with a leading national Partner of Optibelt’s new Super XE-Power Pro M=S choice delivering nextgen roadside technology and service cogged V-belt earned the company recognition as the “Best of Drive and Fluid Technology” in the German Industry Awards 2018. The Arntz Optibelt Group is a global manufacturer of high-performance power transmission and material handling belts – including v-belt, timing belt and ribbed belt for a wide range of industries such as automotive, agricultural and general machineries, oil and gas, textile and GROW TODAY household appliances. CLICK HERE TO LEARN MORE

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14 | AUTOTALK APRIL 2020 | www.autotalk.com.au AFTERMARKET

Parts & Accessories GERMAN TECHNOLOGY LAUNCHES FLEX COUPLINGS

urson Auto Parts, Australia’s shaft and the driveshaft. They can also be preferred supplier of parts, tools located between the driveshaft and the Band equipment to the Australian differential on some makes and models. automotive trade, brings German SGF flex couplings from Burson Auto Parts engineering precision and total quality to are engineered to handle the operating and its power transmission product range with torque peaks of the engine in conjunction SGF. with cancelling the various vibration and Burson Auto Parts offers a complete harmonic frequencies generated by the range of German manufactured SGF drivetrain. original flex couplings for European, Each coupling is designed and tuned to Australian, American, and Asian vehicle perform this task based on the vehicle By selecting premium quality SGF power makes and models. model and powertrain configuration, so it is transmission products from Burson Auto SGF is a specialist in automotive power vitally important to be aware that a coupling Parts, automotive experts are fitting the transmission products, manufactured from can differ for each make and model of a same products that have been selected several state-of-the-art engineering and vehicle. as Original Equipment for many RWD and manufacturing facilities located in Germany SGF’s product advantage is based on AWD vehicles around the world. and around the world. its expertise in this field, along with its Ford, General Motors, Chrysler, BMW, Australia’s Burson Auto Parts constantly exclusive Tenpu® fibre technology. This Mercedes Benz and Hyundai all use SGF seeks to provide its valued trade customers technology combines unique cord inlays flex drive couplings. with premium quality automotive and rubber material that operate under Australian workshops and mechanics need components. SGF’s decades of experience tension load. to beware of the dangers when using lower and unmatched quality make this range a Unlike common rubber couplings that work quality flexible couplings, as they do not clear stand out when it comes to flexible with shear load or pressure load on the offer the same NVH cancelling properties couplings. rubber, the tension load principle ensures as the original. This results in vibration A flexible coupling is used to transmit that the cord inlays transmit most of the and noise issues along with the fact that rotational torque whilst compensating for load, providing a better tolerance to shock in many cases, lower quality couplings axial, radial and angular misalignment in the loads and a higher power density ratio. cannot handle the vehicle torque and RPM. drivetrain. In a road car, they are typically This results in the ability to transmit higher This has the potential to cause serious and located between the transmission output torque with a smaller coupling. expensive engine damage. New Globe Cabinet Free with qualifying purchase Narva has just released a new Automotive Globe Cabinet providing workshops and other high volume globe users with a tough and easy-to-use storage and display solution.

eaturing premium steel consumables and related tools. construction for longevity and For added convenience, the clear face wall mounted using the predrilled holes. Ffinished in Narva Blue incorporating also allows the user to easily keep tabs *Applicable globe packs that qualify for a screen printed Narva logo, the new on stock levels of the five drawers at the free Narva Automotive Globe Cabinet cabinets are designed to meet the rigours a glance. Additionally, the cabinets offer are: 12V Automotive' (Part No of constant workshop use. contain a hidden shelf to keep higher 47100); 12/24V Premium Automotive (Part Other benefits include tool chest quality value items secure and out of sight if No 17100); 12/24V Automotive (Part No. drawer runners that provide reliable and required. 47110) and'12/24V Premium and Heavy smooth draw operation and a tough, The new Automotive Globe Cabinets Duty Globe (Part N. 17110). clear, magnetised Perspex front face include rubber floor stoppers to elevate *For additional information on the that is lockable, making these cabinets and protect the base if positioned on a qualifying Globe Packs, contact your local ideal to securely house globes and other shelf or floor, or as an alternative, can be Narva representative.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 15 PEOPLETALK MARGIN CRUNCH: HOW DEALERSHIPS CAN FIND MORE EFFICIENCIES IN THEIR DELIVERY TRANSPORT By Walter Scremin ’ve worked closely with automotive The first trap is the lure General manager, Ontime dealerships for over 30 years and have of “false economy”: This Delivery Solutions Iseen the pressure increase on servic- generally involves a headline ing and parts divisions. delivery rate which is too Dealerships are being challenged as good to be true. There has large insurance companies take on been a recent increase in the more repair work, and by a changing number of low price, low quality transport Achieving a logistics solution which is landscape across panel repair which operators in the industry, which offer “elastic” involves significant ground work, is seeing many smaller panel beaters attractive headline rates, but often ending but the effort is worth the efficiency gains. being purchased by bigger players. up costing more down the track. Dealerships which can honestly appraise In addition, the cost of distribution to It may be tempting to find someone their delivery transport structures, locate make a dollar is only increasing. Delivery who can do a delivery for a few dollars the hidden costs, and evaluate suppliers transport efficiency is always a challenge cheaper, but what if it takes two hours and technology solutions are poised to but there is now more urgency for longer? If the supplier doesn’t have the benefit. dealerships to control these costs. There systems or experience to improve your Using technology – Many small-to- are some common delivery transport business, it’s false economy. medium sized delivery fleets still fall traps which must be avoided to gain Dealerships need to look beyond the short in digitalisation. As a minimum, more control over this area. rate and consider the value add, the you should consider digital tracking, Delivery transport represents a high ability to streamline processes and communication to keep customers up-to- fixed cost and a potentially bottomless improve performance. date, and proof of delivery systems. pit for dealerships – even running a The second biggest trap is not knowing Research shows customer expectations small delivery fleet may attract many the exact delivery costs for your parts around parcel delivery are increasing. unexpected and hidden costs. division. It’s surprisingly common, yet Interestingly, it’s not all about speed. Some ways to improve efficiency and there are ways to objectively reveal the A quick turnaround might be nice, but reduce costs will be obvious, such lurking costs which trouble many delivery communication, reliability and accuracy as outsourcing to high-performing fleets. are most vital. transport suppliers. But good ideas can When you truly know the costs you Using technology to track items and come from a combination of experience increase your chances of making the update clients is a customer service and lateral thinking. right choices. booster. They just love being accurately For example, Ontime recently facilitated informed about their deliveries. a conversation between two dealerships Keys to greater efficiency Thinking laterally – sometimes you need to pool some of their delivery resources Many little things improve efficiency, to be creative to solve a problem, but – they were each located on either side and experience counts. For now, let’s achieving this requires experienced of a major capital city, and we found they consider three big areas for improving transport operators able to treat your could share some of the costs by teaming efficiency in the delivery fleet. dealership’s delivery challenges as if they up on certain delivery runs. This created Elastic logistics – flexibility is king in were their own. Whether it’s combining an instant and profound efficiency gain. parcel delivery, and dealerships must resources as part of an efficiency drive, demand solutions which provide more or finding innovative ways to streamline Common transport delivery traps control. Elastic logistics is scaling processes, you’ll know a transport Before a dealership can hope to lift its resources up or down at short notice, supplier has your best interests in mind if efficiency it must avoid some common critical for being genuinely responsive they put you first and genuinely help you delivery transport traps. to your customers. to cut costs.

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16 | AUTOTALK APRIL 2020 | www.autotalk.com.au PEOPLETALK

BREAK THROUGH THE NOISE WITH YOUR AD CREATIVE

he creative component of an ad- being unlocked with advances in vertisement has traditionally been a technology, the proliferation of by Gavin Cox key part – if not “the” key part – of mobile devices and advancements Managing Director T AdTorque Edge ensuring a campaign message achieves in data utilisation. cut through in print, TV and radio. This, Dynamic creative is advertising [email protected] however, has not always been the case that is developed in real time in digital advertising, with the artwork using customer data, combining sometimes being secondary to achieving and aligning to a myriad of external reach, frequency, targeting and – the all- factors – such as location, the important - lead generation. weather at that location, the time of Our top tips for digital creative As time goes on, however, and we day - to create relevant and personal move beyond static banner ads and messages that speak directly to that • Data and personalisation repurposed 30-second TV spots individual. Take advantage of data and into more sophisticated digital The message in our dynamic creative is personalisation. Retarget to consumers advertising techniques, we are seeing a key. Advertising can reach consumers the specific vehicle they have looked fundamental shift in focus, with creative at the right time and right moment but if at on your site or a third-party site. and messaging needing to be tailored to the messaging is off then we fall on deaf • Platform-specific campaigns the individual customer. ears. Make sure your campaigns are Digital capabilities have pushed For example, running a promotion or customised to the platform you advertising into new and exciting retail message to someone just entering are running on. Want to run the areas and we are finally arriving at the their buying journey will have less of an manufacturer produced TVC across marketing industry’s long-time goal: impact than a product awareness advert social & programmatic? Then keep the Advertising that is highly engaging and – that is, selling the features and benefits. central theme (retail offer, message) incredibly relevant to the consumer. Right Similarly, pushing entry level small but tailor the ad to fit the platforms message, right person, right time. vehicles to new families looking to specs. upgrade is the right audience (we know • Video ads Welcome to the age of dynamic creative they are potentially in market), the right For video, make sure your message moment, but wrong message. comes across early. Logo/branding, Research from Nielsen Catalina Solutions Having an effective creative strategy retail message should happen up based on nearly 500 studies from 2016 in place that targets all consumers front. to 2017, shows that on average 47% of a with exactly the right message takes • Put your best foot forward sale can be attributed to the advertising time, planning and a detailed level of Make your creative sing. Consumers creative, across both TV and digital. execution, however, it is an investment are much more responsive to digital In addition to this, consumers today that can deliver some excellent results. messaging. You want your creative demand tailor-made content. They expect to be representative of the expertise, it to be personal in ways that were So, how can dealers get dynamic experience and professionalism they unachievable in the past, but are now creative right? can expect when they walk on to your showroom floor. We start small. Focus on the immediate: It is fair to say that when aligned with "Digital capabilities The customers visiting your website, data and technology, the better and have pushed advertising engaging with you already. Move away more tailored the creative, the more into new and exciting from simply retargeting a set of generic effective the ad. sales messages to everyone who has Great creative with a good message areas and we are finally visited your site. If they take the time targeted at the right customer will arriving at the marketing to view your stock then aim to put that showcase your product, dealership, and specific vehicle (or similar) in front of retail offer in the best light, and deliver you industry’s long-time goal: them again, across the channels we know the strongest campaign performance in Advertising that is highly they will visit: Facebook, news sites and an age where consumers are being faced video platforms. By doing that we start to with advertising messages everywhere engaging and incredibly see that right message, right person, right they turn. relevant to the consumer. " time approach take hold.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 17 PEOPLETALK

AUTOMOTIVE REVOLUTION: Changing times for the car industry

ar sales in Australia last year were with them a range of social and the slowest since 2011, reflecting economic benefits. a shift which saw consumers Human error is estimated to by Michael Higgins C managing director of opting for alternatives to traditional car cause 90% of all road deaths. By ownership. removing manual driving controls, Blinker The trend is being driven primarily by some experts predict all road millennials who no longer feel they need deaths involving human error can be to own a car. prevented. Some commentators expect traditional Research also suggests driverless cars car sales won’t bounce back over the could improve transport accessibility More people will be travelling further. next decade, and the auto industry will for people with a disability and for older Studies show that a rising population undergo major changes. motorists. will lead to higher mobility demands, Car subscriptions may become the new That’s likely to occur after the resulting in more people travelling normal. The global car subscription commercialisation of autonomous longer distances. That’s largely because market is booming, with companies like cars, which will provide special needs major city centres are running out of HelloCars offering drivers convenient, consumers with affordable access to space, so daily commutes to work will flexible access to a car that fits their independent transport. be longer. lifestyle. Electric vehicles are growing in popularity With an increase in kilometres travelled, Aussies can drive any car they want by around the world. In Norway, they make drivers may need to replace their vehicles making small weekly payments without up 58% of new car sales, and Norway is more frequently. Experts predict that will a locked-in contract. City dwellers can on track to end fossil-fuelled car sales by lead to higher sales for car dealerships in drive a small hatchback throughout the 2025. the long-run. year with the option of swapping to an Cars will get even smarter. The Internet SUV for a holiday road trip. "Car subscriptions may of Things (IoT) is having an impact across Car subscriptions are another service industries, with consumers expecting to dealerships can offer customers, while become the new normal. be connected to the Internet wherever providing a revenue stream through the The global car subscription they are. weekly payments. Soon cars will be no different. There’s Software platform Blinker.com.au market is booming, with a growing demand for smart cars that is allowing car dealerships to offer companies like HelloCars are kitted out with wi-fi – as well as subscriptions as a service, so customers offering drivers convenient, being connected to networks like Apple can head to their local dealer whether Carplay or Android Auto – to help drivers they want to buy, lease or subscribe. flexible access to a car that find and order goods and services. As the offering becomes more popular, fits their lifestyle." Those capabilities are expected to grow car dealerships are tipped to head toward exponentially by 2030. The adoption a similar structure to real estate agencies, of 5G capabilities in the next couple with car subscription and sales forming Although Australia is lagging behind of years is set to accelerate IoT, with two equally-important departments of the when it comes to electrifying the car connectivity increasing in homes, cars business. industry, there’s growth in local sales of and businesses. By 2030, a car dealership without a hybrid and electric vehicles. In the next decade, cars will be able to subscription business will be like a real An Australian Automotive Aftermarket speak to each other, car dealerships estate agency without a rent roll. Association report says sales of both and OEMs. Like other forms of Self-driving cars may still be a long way hybrid and electric cars have almost industrialised IoT, this will see dealers off hitting Australian roads, but they’re doubled year on year, with total sales and manufacturers able to track and almost guaranteed to become a part of making up 2.5% of the market. determine when cars need a repair or daily life within the next decade. According to PwC,55% of all new car replacement. Forbes predicts that by 2030, a quarter of sales around the globe will be fully all vehicles will be autonomous, bringing electric by 2030.

18 | AUTOTALK APRIL 2020 | www.autotalk.com.au PEOPLETALK

CORONAVIRUS IN COLLISION WITH DRIVERS

he impact of coronavirus is leaving Manufacturers recalled 29.3 million very few areas of everyday life vehicles in 2018, according to National Tuntouched. But with the recent Highway Traffic Safety Administration by Chris Daglis revelations of manufacturing plant data (NHTSA). managing director shutdowns and shortage of car parts Between 2014 and 2016, the total All Auto Recalls imported from China, aside from our number of vehicles affected by recalls ability to repair and maintain our vehicles, spiked - reaching 50.5 million in 2016. there is a more sinister consequence. There are in excess of 1.5 million Demand for Recycled Original insurance claims each year in Australia Equipment (ROE) vehicle parts will with parts making up circa 50% of a grow rapidly. As a result of faulty vehicles’ repair cost. We must know if a It is critical for mechanics, collision manufacture, some of these parts part that has been added to our vehicle is repairers, insurers and any on-seller may be under active recall. With from a licenced automotive recycler and of parts, to have a recall checking this increased demand comes the more importantly, that they have a lawful capability so that they can alert their heightened risk of a dangerous and and robust recall process in place. And customer to a safety problem on their potentially fatal recalled part, being that recall process must go beyond the vehicle. fitted to our cars. time it is added to the car; it needs to go Sometimes these recalls are critical. In A recall system is in place for car for the life of the car and the time we own the Takata airbag scenario, we are talking parts. But with high profile failings it. If this information does not reach either about some airbags being in vehicles that such as Takata airbags and the recent the owner or the mechanic that fitted the are now 24 years old, yet they were only embarrassment for Mercedes failing to part, there is zero traceability. recalled three months ago. recall, the system appears to be flawed The product safety website offers the and does not always protect drivers. "It is critical for automotive industry a static database The single most important question every that they can check against for recalls, or Aussie driver should be asking right now mechanics, collision they can use the All Auto Recalls system of their mechanic, insurer or seller of repairers, insurers and any which is dynamic, live and offers the Auto parts is: “Do you know if this car part is Alert function. This will alert the mechanic safe and not the subject of a recall, and on-seller of parts, to have a if any of the vehicles they have entered can this part be traced to my vehicle recall checking capability into the system, have a recall against should it be recalled in the future?” so that they can alert them at any time in the future. Remember, It’s not something many of us would give a vehicle may be clear today, but recalled a second thought to – you have been their customer to a safety at some time in the future. in a collision, or your car is due routine problem on their vehicle. " The automotive recycling industry will repairs and maintenance and we pass our play an increasingly important role in vehicle over, into the hands of our local the parts supply chain moving forward. mechanic or insurer. And this applies no matter where it The Recycled Original Equipment Once the car is returned, repaired and was sourced and by whom it was fitted, part, supplied by the professional auto ready to drive, how many of us would including the online marketplace. recycler that manages recalls effectively, question where the parts had been The recalls process is often overlooked is critical to the long-term sustainability of sourced and if they were safe? How by online sellers, not to mention the the auto repair and insurance industry. would we know if one such part, was Facebook online marketplace. The coronavirus is presenting multiple in fact a dangerous part on the recall It took me a short time to find over 70 issues and raising concerns for many, register? How would we know if it were unsafe, recalled Takata airbags available however in the case of the automotive to be recalled in the future; could the for sale in the online marketplaces. industry, driver safety is of equal concern part be traced to us and our vehicle? Online sellers must know if the items and now is the time to raise awareness Traditionally ROE parts for collision repair being placed online for sale are subject of the increased risks surrounding make up approximately 5% of all parts to an active recall, and they must have recalled parts and arm the public with the used in Australia, a whopping 40% in New a recall process in place as part of their information they need to stay safe on the Zealand, 11% in the USA, and 2% in the business process. road. United Kingdom.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 19 SHOWROOM

New Vehicle Industry and Product News

NEW BMW 2-SERIES GRAN COUPE OFFERS MORE CHOICE

itting dimensionally between the have a certain sporty look, resulting in the First driving impressions BMW 1-Series hot hatch and the biggest take-up of the largest sized alloy BMW Group Australia held the media Smid-size 3-Series range, wheels from the factory, so making the M launch of the 2-Series Gran Coupe in the new BMW 2-Series Gran Coupe offers Sport package standard on the 218i was Sydney which allowed us to experience buyers the options of a comfortable urban a no brainer. the cars in their natural suburban habitat cruiser or a more sporting grand tourer. There are two flavours of 2-Series Gran as well as the narrow and windy hill roads The new 2-series is 4526mm long, Coupe on offer, the comfort-orientated of the Ku Ring Gai Chase national park. 180mm wide, and 1420mm high, and 218i which is equipped with the M Sport Driving an M235i XDrive solo in the combines coupe styling and dynamics package as standard priced from $47,990 Sydney CBD is not for the faint of heart, with the practicality of four doors (with and the sports-orientated M235i xDrive but the navigation system with turn by frameless windows) and a 430- litre priced from $69,990. turn instructions replicated in the head boot capacity. The M235i xDrive is differentiated from up display took a lot of stress away, In comparison to the iconic BMW E46 the 218i thanks to exclusive highlights allowing us to enjoy the sports bucket 3-series sedan, the new 2-series Gran on Cerium Grey with a distinctive three- seats and the aural delights of BMW’s Coupe is 56mm longer, has a 55mm dimensional mesh kidney grille adorning most powerful 2-litre engine yet. shorter wheelbase, but offers the same the front. A $2200 M Performance Even with comfort mode selected, you amount of front legroom as the older Package is also available which lowers can feel the stiffness of the chassis and car and 33mm more legroom in the rear, the cars weight and enhances the the crisp response of the steering, the making for easier entry and exit as well as aesthetics. large wheels and low-profile tyres of comfort on longer journeys. This particular package includes black the M23i XDrive didn’t take well to the A 40/20/40 split rear seat backrest high-gloss kidney grille frame and potholes which are the scourge of the allows the 430 litres of boot space to be mesh, black finished mirror caps, black arterial routes in NSW. expanded as required. finished tailpipes and forged 18-inch However, the more softly suspended 218i The 2-Series Gran Coupe joins its bigger V-spoke style M light-alloy wheels. was perfectly at home in the urban sprawl siblings the 4-Series, 6-Series, and A 103kW/220Nm turbocharged three- and on the challenging narrow roads 8-Series Gran Coupes of which BMW have cylinder 1.5-litre powers the front wheels of Sydney’s national park and Northern sold more than 400,000 units globally, of the 218i Gran Coupe through a beaches. The front-wheel-drive 218i according BMW Group Australia head of 7-speed automatic, while the all-wheel- naturally has more understeer than the product marketing Brendan Michel. drive M235i xDrive gets it thrust from all-paw M235i, but it still corners crisply, Michel says that BMW Group Australia has a 225kW/450Nm turbocharged four- and the characterful three-cylinder engine the highest take-up of M Sport packages cylinder 2-litre petrol engine allied to an has plenty of verve when faced with the because customers like their vehicles to 8-speed automatic. hills of Sydney.

20 | AUTOTALK APRIL 2020 | www.autotalk.com.au SHOWROOM

New Vehicle Industry and Product News

FASTEST GOLF YET ARRIVING IN JULY

roduction of the fastest official front differential lock. In the TCR this VOLKSWAGEN GOLF GTI TCR $51,490 Golf GTI to date commences in is augmented by a bespoke adaptive Additional and differing specification to PMay ahead of this special edition's chassis control and performance front the GTI: Australian arrival in July. brake system. The TCR rides more firmly • 213kW/350Nm 2.0-litre turbo petrol The Golf GTI TCR celebrates and 5mm lower than the standard GTI. engine Volkswagen's success in Touring Car The difference with GTI TCR and the • 6-speed wet-clutch DSG Racing, and is the latest in the line of usual GTI is also audible with a freer • Modified exhaust special editions that began with the flowing system providing a distinctive • Unique Adaptive Chassis Control, GTI (Mark 5), through GTI 35th note. A six-speed version of Volkswagen's lowered 5mm Anniversary (Mark 6) and GTI 40 Years wet clutch DSG comes with the unfiltered • Black mirror covers (Mark 7, 2016). 350Nm version of this engine tune. • Honeycomb TCR decals The GTI TCR succeeds the GTI 40 Years Available in the Pure White and Tornado • Gloss black roof as the most powerful production version Red shades synonymous with GTI, the • LED headlights with dynamic corner- of the model line. GTI TCR is also available in a new Pure ing light While both emulate the 213kW of the Golf Grey. All colours come with a black roof, • Dynamic light assist R, the 40 Years achieved this power on distinctive honeycomb side decals and • Sports cloth/microfleece seats over-boost. In the GTI TCR this output bespoke 19-inch alloys. • Sports steering wheel with perforat- is constantly attainable; an appreciable Interior features include Alcantara ed leather and red 12 o'clock marker increase over the standard GTI's 180kW. accents, black/red sports cloth • Seat belts and floor mats with red The GTI TCR's estimated 0-100km/h time upholstery, a new version of the GTI trim is 5.7 seconds – 0.6 more rapid than the steering wheel with perforated leather • Alcantra gearshift lever and door trim GTI 40 Years with DSG transmission and at the hand positions and a red 12 inserts within one second of the Golf R DSG o'clock marker. Glass panoramic sunroof $1900. hatch's 4.8 seconds. The final iteration of the current Unlike the Golf R, GTIs eschew all- generation Golf, 300 GTI TCRs will be wheel-drive for the lighter weight of a available.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 21 SHOWROOM

New Vehicle Industry and Product News NEW KIA SORENTO ARRIVING IN JUNE

ia has unveiled its fourth generation Sorento SUV which will be available Kwith diesel, petrol/electric hybrid and PHEV powertrains for global markets. It sits at the heart of Kia’s reinvigorated global SUV line-up, which also includes the Seltos and Sportage. More than 44,000 Sorento models have been sold in Australia since the model was introduced in January 2003. “The Sorento’s evolution over the last 18 years echoes that of the Kia brand as a whole,” Kia Motors Europe chief operating officer Emilio Herrera says. “While the car was initially launched in 2002 as a utilitarian all-terrain vehicle, the fourth-generation Sorento has been transformed into something more desirable. It is an important model for Kia, organically wraps around the integrated battery pack can be located under the floor particularly now that it also represents the headlamps on each side. The headlamps beneath the front passenger, with minimal first use of electrified power in our flagship themselves feature a new ‘tiger eye’ LED impact on cabin or luggage space. SUV.” daytime running light, adding extra focus to Power is sent through the six- It is the first vehicle to be based on Kia’s the design. speed automatic transmission via a new-generation midsize SUV platform. It is 1900mm wide, 10 mm wider than the transmission-mounted electrical device, Paired with a larger body to maximise third-generation Sorento and is 10mm allowing the full power of the engine and cargo and luggage space, the platform longer (now 4810mm), yet it features motor to be transferred in parallel with ensures the Sorento is one of the most shorter front and rear overhangs. The minimal loss of energy. versatile and spacious three-row SUVs on additional length is found in the wheelbase, The Sorento Hybrid will go on sale in select the road. which has grown by 35mm to 2815mm. European markets from launch, with others Innovative interior packaging means it can The new Sorento will be available in to follow later in 2020. The new Sorento offer all this while accommodating Kia’s Australia with a choice of seven exterior will also be available as a plug-in hybrid new Smartstream electrified powertrains paint finishes, and 17, 18, 19 and 20-inch variant from late in 2020. – the first time that hybrid power has aluminium alloy wheels, depending on trim The new four-cylinder 2.2-litre Smartstream featured in the Sorento line-up (not for grade. diesel engine produces 148kW and 440 Australia at launch). Material quality is enhanced, with a Nm torque. The newer engine is 19.5kg This will be Kia’s most high-tech car yet, cabin that blends metallic trim, leather lighter compared to that found in the third- thanks to its progressive connectivity, upholstery, and embossed satin-effect generation Sorento and it is paired with driver assistance and infotainment surfaces. Kia’s new eight-speed wet double-clutch technologies. Its twin digital displays In In Australia the Sorento will be available transmission (8DCT). deliver advanced graphics, new telematics (grade dependent) with embossed black Fuel efficiency and emissions data for features and full wireless smartphone cloth, leather appointed black cloth and the Sorento’s new powertrains will be connectivity. black quilted Nappa leather. announced closer to the car’s European The new model is the result of a Kia’s newest SUV will be available with on-sale date later in 2020. Like its collaborative design effort between all hybrid power – a first for a Sorento – and predecessor, the new Sorento will be built three studios within Kia’s worldwide buyers will eventually able to choose from for Europe and Australia, at Kia’s Hwasung design network, in Korea, Europe and hybrid or plug-in hybrid variants. manufacturing facility in Korea. North America. The Sorento Hybrid is powered by a new Australian sales of diesel models will Its bodywork incorporates sharp lines and Smartstream electrified powertrain, pairing commence in June while the petrol creases – noticeably more sculpted than a 1.6-litre T-GDi (turbocharged gasoline models will be available in the fourth its more round-edged predecessor. direct injection) with a 1.49 kWh lithium- quarter of this year. As with all Kia models The front of the Sorento evolves with a ion polymer battery pack and 44.2 kW it will be covered by the 7-year unlimited new interpretation of Kia’s hallmark ‘tiger electric motor. The intelligent packaging kilometre warranty, 7-year capped price nose’ grille, displaying a wider shape which of the Sorento’s new platform means the service and 7-year roadside assist.

22 | AUTOTALK APRIL 2020 | www.autotalk.com.au TOP 10 BRANDS

MARCH SALES DECLINE BY NEARLY 18% 1. TOYOTA 50,071

he Federal Chamber of Automotive Industries (FCAI) says new vehicle Tsales in March 2020 declined by 17.9% in comparison to March 2019 and attributes this to the effects of COVID-19 on the Australian economy. It is the 24th consecutive month of market decline. Sales for the month totalled 81,690, consisting of 21,777 passenger vehicles 2. MAZDA 20,744 for a 26.7% share of the market, 39,171 Tony Webber SUVs (48% share) and 18,162 light commercial vehicles (22.2%). enhanced hygiene protocols and Toyota was the best-selling brand in contactless consultations to maintain March, with 17,583 sales recorded. In personal distance,” Weber says. second place was Mazda with 6819 sales, Group fleet managerBen Maslen from followed by Mitsubishi with 6002, Kia with Westpoint Autos in Indoroopilly, Brisbane 5654 and Hyundai 5306. says the dealership has changed the The top-selling vehicle in March was the way customers drop off their vehicles for Toyota Hi-Lux with 3556 sales, followed service. by the Ford Ranger (3108), Toyota RAV 4 Maslen says the service advisors meet (2991), Toyota Corolla (2812) and the the customers at the bottom of the 3. HYUNDAI 16,694 Holden Colorado (2391. driveway and direct them to a car park FCAI chief executive Tony Weber says to maintain social distancing. The around Australia many dealerships have customer is then directed to a waiting opted to remain open to maintain support courtesy car which has been sanitised for customers, particularly from a service for their use. When they return, their perspective, during this difficult period. freshly serviced and sanitised vehicle is “Of particular importance are first waiting for them. responder and essential services “It’s a little bit different to what we did vehicles. We must keep these vehicles in the past, and our weekly service on the road to ensure our communities department bookings are sitting at 80% continue to function and remain safe. full where we used to be 100%. Sales “Within dealerships, customer safety is wise the last week of March was pretty of the highest priority, and automotive ordinary, it was certainly not the usual end 4. MITSUBISHI 16,623 brands have initiated a variety of of the Japanese fiscal year,” he says.

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www.autotalk.com.au 5. KIA 15,479

AUTOTALK APRIL 2020 | www.autotalk.com.au | 23 Continued p24 TOP10 MARCH TOP 10 BRANDS CONTINUED LIGHT CARS UNDER $25K MEDIUM SUV UNDER $60K

1. TOYOTA YARIS 1. TOYOTA RAV4 721 2,991

2. KIA RIO 2. MAZDA CX-5 6. FORD 13,882 642 1,734

3. MG MG3 3. NISSAN X-TRAIL 631 1,323

4. SUZUKI SWIFT 4. MITSUBISHI OUTLANDER 449 1,264 7. NISSAN 10,749

5. SUZUKI BALENO 5. SUBARU FORESTER 306 1,227

6. VOLKSWAGEN POLO 6. KIA SPORTAGE 266 1,186 8. HONDA 10,102

7. HONDA JAZZ 7. HYUNDAI TUCSON 258 1,128

8. MAZDA 2 8. HONDA CR-V 252 990 9. VOLKSWAGEN 9,749

9. SKODA FABIA 9. HOLDEN EQUINOX 73 439

10. HONDA CITY 10. VOLKSWAGEN TIGUAN 16 337 10. HOLDEN 9,000

24 | AUTOTALK APRIL 2020 | www.autotalk.com.au STATSTALK HYBRIDS AND EVS CLIMB WHILE FOSSIL FUELS FALL

t’s more of the same in the March VFACTS figures with electric vehicles I(EVs) and hybrids continuing to set the pace while petrol and diesel vehicle sales generally dive. The trend has been continuing for some time with EV, plug-in hybrid (PHEV) and hybrid sales still soaring at the expense of internal combustion engine (ICE) vehicles in vehicle sales figures released by the Federal Chamber of Automotive Industries (FCAI). “The Australian new vehicle market has now seen a downturn each month for the past 24 months,” FCAI chief executive Tony Weber says. Weber doesn’t mention the EV, PHEV and hybrid results but the FCAI blames coronavirus (COVID-19) concerns, bushfires, droughts, floods, political and than 999% in monthly and year-to-date These rose to 44 (up 91.3%) in March financial uncertainty and more for the (YTD) comparisons. They reached 1284 2020 in the private passenger market and adverse impacts on consumer confidence in the private SUV sector – up 1210 from 51 (up 75.9%) in the non-private category. contributing to the difficult Australian 74 in the monthly comparisons and got to Adoption for this segment in the SUV market. 909 in the non-private sector – up 847 in categories was much lower, reaching 112 He says that despite the difficult March 2020 from 62 in March 2019. (62.3% up on March 2019) in the private conditions numerous automotive That also saw YTD totals rocket to 3725 market and dropping to 86 (down 75.8%) dealerships around Australia remained and 2498 in the respective categories – in the non-private SUV sector. open to maintain support for customers, both well over 999% increases. However, both EV/PHEV and hybrid particularly first responder and essential Electric/PHEV vehicles continue to make market sectors continue to make ground services vehicles. good ground too. on their fossil fuel counterparts. “In addition, we need to ensure those who physically attend their workplace can travel safely. The NEW VEHICLE SALES BY BUYER TYPE AND FUEL TYPE MARCH 2020 motor vehicle is a safe form of Month YTD Variance +/- Vol. & % transport during the pandemic, allowing occupants to preserve Total Market 2019 2018 2019 2018 MTH YTD MTH YTD their personal distance from other ELECTRIC commuters. Passenger Private 44 23 124 101 21 23 91.3% 22.8% In March, both EVs/PHEVs and Passenger 51 29 181 66 22 115 75.9% 174.2% hybrids are well up in most Non-Private categories. SUV Private 112 69 236 127 43 109 62.3% 85.8% Hybrids take the lead in numbers SUV Non-Private 86 355 196 425 -269 -229 -75.8% -53.9% among the two sectors, recording Light Commercial more than 1000 in most segments 0 2 10 5 -2 5 -100.0% 100.0% Non-Private and just under in one. Sub Total 293 478 747 724 -185 23 -38.7% 3.2% For the private passenger category, hybrids reach 1001 HYBRID up 73.8% compared with March Passenger Private 1,001 576 2,848 1,677 425 1,171 73.8% 69.8% Passenger Non- 2019 (576), then get to 1455 (up 1,455 829 3,907 2,746 626 1,161 75.5% 42.3% 75.5% or 626) in the monthly Private comparisons for the non-private SUV Private 1,284 74 3,725 213 1,210 3,512 >999% >999% passenger market. SUV Non-Private 909 62 2,498 173 847 2,325 >999% >999% The biggest rises for hybrids Sub Total 4,649 1,541 12,978 4,809 3,108 8,169 201.7% 169.9% come in the SUV private and non-private areas – jumping more TOTAL 4,942 2,019 13,725 5,533 2,923 8,192 144.8% 148.1%

AUTOTALK APRIL 2020 | www.autotalk.com.au | 25 HIGHLIGHTS OF THE MONTH

Mark Bouris to front new Lexus campaign

ntrepreneur Mark Bouris is joining Lexus Australia as a brand ambassador and he will front the launch of the new Lexus ES F Sport campaign. E“Partnering with achievers like Mark is an opportunity to combine our approach to business – one entrenched in taking care of customers like they are guests in our home – with the honed skills of a philanthropic business mind,” Lexus Australia chief executive Scott Thompson says. “It’s one of life’s great rewards to collaborate with global brands who drive innovation,” Bouris says. “For Lexus to collaborate with my mentored programme that helps entrepreneurs achieve their goals and excel on their journey is very special indeed.” VACC launches Auto Workplace Assist

The Victorian Automobile Chamber of Commerce (VACC) says the upcoming implementation of workplace manslaughter laws in the state from July 1, means that now is a very good time to check and ensure compliance. It has launched a new national product to help make business operations easier: Auto Workplace Assist. “Auto Workplace Assist is a convenient go-to solution for supporting business owners across Australia with their automotive workplace compliance, knowledge and awareness needs,” VACC chief executive officerGeoff Gwilym says. It makes it easier for automotive business owners and manag- ers to look after their health and safety obligations by offering industry specific products, so that they can concentrate on what they do best: running successful automotive businesses. Ram 1500 reports for Marine Police duties Westcott takes over as Signoriello heads to Japan NSW Police Marine Command has taken delivery of a second full-size Ram Truck to tow police jet skis and rigid inflatables to Shaun Westcott will take over the reins of Mitsubishi Motors locations throughout the state. Australia Limited (MMAL) as chief executive officer on April 1, A 5.7-litre V8 Hemi 1500 Crew Cab has just clocked on for 2020 succeeding John Signoriello who is heading to a new duty, following an evaluation of multiple RAM Trucks, role in Japan. including the 2500. A 30-year Mitsubishi Motors Based in Balmain, Sydney, the NSW Police Marine Area veteran, Signoriello becomes Command’s (MAC) responsibility extends to all coastal areas of MMC global marketing and NSW and 200 nautical miles out to sea. The services provided sales executive officer based by MAC are similar to those carried out by land-based police, in Tokyo. He was appointed including crime prevention and detection, search and rescue. MMAL chief executive officer “These trucks go everywhere in NSW with the MAC in 2017, prior to this he held enforcement team, from Tweed Heads down to the Murray,” various roles in operations, NSW Police Marine Command Superintendent Stephen sales and marketing. Hegarty says. Westcott joined MMAL in 2019 “The 4.5-tonne max brake towing is incredibly useful as it as Aftersales deputy director allows us to easily tow up to four jet skis at a time – or one of and is responsible for the areas Shaun Westcott our bigger rigid inflatables – out to Dubbo, for example, for of aftersales, parts and the Commissioner’s Rise Up youth programme, compliance accessories and customer around boat safety on the water, or the South Coast to assist experience. He also brings skills in the recent bushfire evacuations.” Continued on page 27

26 | AUTOTALK APRIL 2020 | www.autotalk.com.au HIGHLIGHTS

Continued from page 26 Jeep Australia boss Kevin Flynn told WhichCar.Com.Au the and experience from a diverse range of industries including service is modelled on the Jeep South African operation mining, FMCG, robotics and manufacturing. which shares the same distance issues as Australia. “Shaun is a great fit for MMAL and his diverse experience places Flynn told Which.Car.Com.Au that his priority is to make sure him in a strong position to lead this team through the next phase the four technicians are available to fly to a dealership at a of the business,” Signoriello says. moment’s notice, and then once the problem is fixed, it is then “His appointment demonstrates MMC’s commitment to analysed to see how it can be avoided in future by training or developing talent globally and I look forward to following the improved processes. developments under Shaun’s leadership over the coming years.”

Ricciardo ambassadorship More than 10 million checks on extended by carsales Takata website Australians have now made more than 10 million vehicle checks Australian F1 driver Daniel Ricciardo will continue his global on the automotive industry’s Takata airbag recall website brand ambassador partnership with carsales for another two www.ismyairbagsafe.com.au years says the company. More than 1.64 million vehicles have been found to be equipped Since 2017, Ricciardo has appeared in carsales television commercials and video content, featured on billboards and with faulty airbag inflators. A faulty Takata airbag has the poten- spent time with some of carsales’ most important clients both tial to seriously injure, or even kill, vehicle here in Australia and abroad. drivers and passengers. “We are very proud of our partnership with Dan and looking “The heavy volume to the industry website clearly shows its forward to another two years of his support to help Australians effectiveness in such an important public recall,” Federal buy and sell cars with confidence,” carsales chief marketing Chamber of Automotive Industries (FCAI) chief executive Tony officer Kellie Cordner says. Weber says. “Dan’s natural charm, down-to-earth persona, reliability and “The real strength of the website is that vehicle owners can sense of humour aligns perfectly with how we see our brand. check the recall status of their vehicles simply and quickly, He’s loved by Aussies and F1 fans across the globe and has and in their own time.” helped reinforce carsales as Australia’s #1 for cars,” Cordner Weber says the 10 million milestone mark represented more says. than 56% of the 17.8 million passenger cars and light commercial Ricciardo’s collaborations with carsales have included the Auto vehicles on Australian roads. Reply video series campaign — where Dan answered carsales’ frequently-asked questions — to humorous how-to videos such as parallel parking, selling a car and changing a tyre. Two Mazda’s and a Kia vie for World COTY

Two models of SUV and a passenger car are vying for the World Car of the Year award, as the top three finalists in each category have been announced. The Kia Telluride, Mazda CX-30 and Mazda are the top three finalists for the World Car of the Year award. A jury of 86 international automotive journalists selected the finalists by secret ballot based on their evaluation of each eligible vehicle as part of their professional work. KPMG tabulated the vote results.

Jeep Australia sets up technical quick response team

Jeep Australia has created its own in-house team of “flying doctors” who are four technical experts that can respond quickly to new vehicles with warranty issues in the dealer network.

AUTOTALK APRIL 2020 | www.autotalk.com.au | 27