THE VEHICLE DEALER’S NEWS SOURCE VOLUME 1 ISSUE 9 APRIL 2015 Yes to new, no to used imports T he government has indicated it is Briggs says. likely to support the personal im“As part of the Review more broadly, port of new vehicles into Australia the Australian Government will con- but remains negative to opening up tinue to cut unnecessary red tape by the market to used vehicles. accelerating the harmonisation of our Assistant minister for infrastructure vehicle standards with international best Jamie Briggs this morning announced practice to ensure we lower costs for the position, following a year business and make Australia of consultation on the Motor more competitive.” Vehicle Standards Act. Consultation on plans for “As part of this process the imports will be opened up personal importation of new until the end of May before cars has been a key consida final decision is made. eration, particularly given the Details can be found here: end of light vehicle manufacww.infrastructure.gov.au/ turing in Australia in 2017–18,” vehicles/mv_standards act/ Briggs said in his statement. index.aspx. “Cabinet has now agreed Responses to the news Jamie Briggs to consider possible options have been mixed. to reduce restrictions on the personal The Federal Chamber of Automoimportation of new vehicles after furtive Industries slammed ther public consultation is undertaken,” the decision, calling the he explained. opening up of new private The Australian Government has imports as ‘irresponsible’. indicated ‘new’ will mean vehicles “Vehicles made for less than a year old, and with up to the Australian market are 4000km on the clock. engineered for AustralThe news for those looking to open ian conditions and safety up the used vehicle importation market specifications meant to was less positive. cope with the Australian “The Australian Government is not climate, roads and lifestyle,” Tony Weber inclined to take the same approach with FCAI chief executive Tony used vehicles.” Weber says. Specialist vehicle importation is likely “It is very simplistic and misguided to become more possible. to say there is no reason to regulate “We are, however, considering how if you’re now part of a global regime. we can continue to support specialist Only 57 countries are part of the global and enthusiast vehicles to be imported regime,” he adds. “The cars may look without impacting on road safety,” the same on the outside, but there are Briggs said. differences when you lift the bonnet “Any potential changes in this area or look deeper into the interconnected will be focused on ensuring consumers systems.” have access to the lowest cost, safest Weber also points out that motor and youngest car fleet possible.” vehicle brands selling in Australia have Red tape will continue to be reduced to manage a complex logistical process INSIDE New face for logistics firm EAI signs South African deal Hail’s impact Renault’s top gun 2 6 8 9 6 8 to get a consumer’s vehicle from the factory to their drive-way. This includes managing the entire border control process, which includes everything from getting the car off the ship, through quarantine and to the consumer safely. “How can a single consumer be expected to navigate this system confidently without the addition of significant bureaucratic red-tape—which the Government has said time and time again it is determined to reduce,” he notes. The FCAI called on the government to re-consider the matter by investigating the implications the proposal has on Australian consumers, on border security and quarantine, on automotive dealers, on service and repair networks, on future intelligent transport and communications systems, and on the automotive brands that invest in the tools, training and technicians that are available in this county to service a motor vehicle. The Australian Imported Motor Vehicle Industry Association said this afternoon in a statement it believes that the minister and the Australian government could go further to achieve the stated goals of increasing competition and improving the safety of the fleet. While supportive of parallel imports, it backs making the channel available through ‘licensed’ dealers and importers in order to provide consumer protection. It was disappointed that at this stage there was a ‘no’ to used imports. “The creation and expansion of a used vehicle importation industry would create opportunity not only for consumers, but Australian entrepreneurs; mitigating the loss of employment and other damages caused by the withdrawal of the vehicle manufacturing companies.” FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: Autohub streamlines Australian operations, announces new MD S hipping and logistics firm Autohub has announced changes to its local operations, with a new managing director and operations manager in place. The new operation will be led by newly appointed managing director for Australia, Daryl McIntyre. In addition, Otis Cooper will take on the role of operations manager, while Brett Lawrence will be taking on the role of customs manager. Autohub is also planning to open a new office in Melbourne later in the year. Autohub’s international co-ordinator – Australia Tony Tiehuis says: “Our plan is to wait for pending key announcement’s from the Australian Government and also consider economic factors within Australia before committing to any major marketing and branding strategy.” “We have however people on the ground and will be actively visiting customers current and new,” he says. Tiehuis also reveals that Autohub have currently come out with a more favourable pricing structure and interactive technology so customers can remain more informed about their services and also be able to track and trace their vehicle. “This has not been made available to them in the past,” Tiehuis told AutoTalk. When asked where the biggest opportunities and 2 | AUTOTALK.COM.AU | APRIL 2015 challenges for Autohub lie in Australia going forward, Tiehuis notes that the key issue will be what the government decides in relation to relaxing vehicle import restrictions into Australia which would give them “an opportunity to grow the business.” “Competition of course from our competitors will be a healthy challenge and based on our experience in other countries working within the bounds legislation and regulations. Things like foreign exchange fluctuations, international freight charges and local economic conditions can also have dramatic effects on international markets,” he adds. Tiehuis believes the current new and used car market in Australia is in his view, “very controlled by legislation which seems to favor the new car industry to the detriment of the Australian consumer.” “We feel an opening up of the import regulations would give the car buying public far more choice and provide a more competitive market and fairer pricing,” Tiehuis says. With an increase in competition expected in the Aussie market Tiehuis notes Continued on page 3 NEWSTALK Harper Review rules in favour of used and parallel imports T he Competition Policy Review - led by emeritus professor Ian Harper - has recommended that restrictions on used and parallel imports be relaxed in favour of giving consumers choice, in its final report on Australia’s competition rules, the first of its kind in 20 years. The review found that restrictions should be immediately removed, makContinued from page 2 that the only way they can stay on top of their game is to “look after our customer and their purchase from the time we receive the vehicle in the country of origin to the time they receive the vehicle in Australia. And also by providing them with a superior service and being competitive price wise.” To find out more about Autohub go to http:// www.autohub.co/au ing it easier for individuals or retailers to import certain products without needing to go through an authorised distributor or IP owner. This would see a dramatic drop in the price of some goods, including second-hand cars. The endorsement could see Australia mirror the New Zealand system, where vehicles would be allowed as long as they meet equivalent safety and environmental standards. Currently, overseas vehicles can be imported after receiving Australian government approval as long as they meet a range of criteria - the most popular option being classic vehicles manufactured before 1989. The recommendation has consistently received condemnation from car Continued on page 4 CAR SALES HIT RECORD NUMBERS IN MARCH M ore than 105,000 vehicles were sold in March, the largest ever sales for that month, according to the Federal Chamber of Automotive Industries (FCAI). Sales were up 8% from a year earlier once again thanks to a sustained jump in SUV sales which increased by 15%. According to FCAI, “one in three vehicles sold in March was an SUV”, record sales have skyrocketed for both commercial and private buyers. Mazda’s CX-5 was the most popular SUV in March, with sales up 21% on 2014. The Toyota Corolla was the number one selling car in March with 4261 units sold, followed by the Mazda3 with 3558 units. The Toyota HiLux (3346) and Mitsubishi Triton (2940) utes finished third and fourth overall. The Holden Commodore (2436) took out fifth place. The year-to-date tally of 277,594 vehicles is 1.6% higher than it was in March 2013, the previous record year for new-car sales in Australia. AUTOTALK.COM.AU | APRIL 2015 | 3 NEWSTALK AutoTalk Magazine and autotalk.com.au are published by Auto Media Group. Phone: 1800 125 620 ABN: 37 51360 734 JOURNALIST Max Pichon +61 403 932 864 [email protected] MANAGING EDITOR Richard Edwards 021 556 655 [email protected] PUBLISHER Vern Whitehead 021 831 153 [email protected] SALES MANAGER Dale Stevenson [email protected] OPERATIONS MANAGER Deborah Baxter [email protected] Auto Media Group Limited makes every endeavour to ensure information contained in this publication is accurate, however we are not liable for any losses or issues resulting from its use. autotalk.com.au autotalk.co.nz dieseltalk.co.nz carandsuv.co.nz CAR & SUV Harper Review rules in favour of used and parallel imports Continued from page 4 manufacturers and some sectors of the automotive industry concerned about vehicle quality, parts availability and flooding the Australian market which will reduce values of current vehicles. For example, in its submission to the review, Ford Australia said there is the chance of significant reputation damage to brands and dealers operating legitimately in Australia from consumers who personally import new vehicles not sold in Australia but expect them to service and repair these vehicles. “A lack of replacement parts, suitable diagnostic equipment, specialised tools and trained technicians may lead to significant dissatisfaction when consumers have the expectation that their vehicle will be maintained and supported by the dealers and brand of their vehicle operating in Australia,” Ford says. In releasing the report the Panel notes that it “endorses competition policy that focuses on making markets work in the long term interests of consumers. Legislative frameworks should continue to limit anti competitive conduct of firms.” The Panel review found that restrictions on parallel imports should be removed unless it can be shown that: • the benefits of the restrictions to the com- 4 | AUTOTALK.COM.AU | APRIL 2015 munity as a whole outweigh the costs ; and • the objectives of the restrictions can only be achieved by restricting competition. “Consistent with the recommendations of recent Productivity Commission reviews, parallel import restrictions on books and second hand cars should be removed, subject to transitional arrangements as recommended by the Productivity Commission,” the review adds. sumer goods, while concerns raised about parallel imports (such as consumer safety, counterfeit products and inadequate enforcement) could be addressed directly through regulatory and compliance frameworks and consumer education campaigns.” The Panel notes that remaining provisions of the Copyright Act 1968 that restrict parallel imports, and the parallel importation defence under the Trade Marks Act 1995, should be “A lack of replacement parts, suitable diagnostic equipment, specialised tools and trained technicians may lead to significant dissatisfaction when consumers have the expectation that their vehicle will be maintained and supported by the dealers and brand of their vehicle operating in Australia,” Ford says. The final report delivered on March 30, by a pnael of experts led by Professor Ian Harper notes: “Parallel import restrictions are similar to other import restrictions (such as tariffs) in that they benefit local producers by shielding them from international competition. They are effectively an implicit tax on Australian consumers and businesses. The Panel notes that the impact of changing technology means that these restrictions are more easily circumvented.” “Removing parallel import restrictions would promote competition and potentially lower prices of many con- reviewed by an independent body, such as the Productivity Commission. Importantly, the report proposes the formation of a new independent body, the Australian Council for Competition Policy, to oversee the application of legislation and policies to ensure a fair marketplace that puts the public interest ahead of private interests. In recommending a comprehensive review of regulations across multiple sectors, the Harper review stressed that ‘complete deregulation was not the goal’. The government will Continued on page 5 NEWSTALK Continued from page 4 decide by the end of the year whether to accept the Review Panel’s recommendations Reduction in vehicle rego fees and fuel excise earmarked The review found that the model of delivering road transport infrastructure had not changed for 20 years, and suggests opening the market up further to private sector providers. Many submissions to the draft report expressed concerns around the imposition of tolls, and this is reflected in the final report. It recommends a reduction in vehicle registration fees and fuel excise, which have traditionally been nominally linked to the funding of road projects, to compensate for user-pays road charges, and compensation from the Australian Government to the states for any lost revenue from registrations. “The advent of new technology presents opportunities to improve the efficiency of road transport in ways that were unattainable two decades ago. Road user charges linked to road construction, maintenance and safety should make road investment decisions more responsive to the needs and preferences of road users. As in other network sectors, where pricing is introduced, it should be overseen by an independent regulator,” the review states. Releasing the report Federal Minister for Small Business Bruce Billson comments: “We want to ensure that efficient businesses - big and small - can thrive and prosper in our economy and where success in a fair and competitive market is determined on the basis of merit and not purely muscle.” “Effective competition is the surest way to raise productivity and grow our economy, ultimately resulting in higher living standards, better paying jobs and improvements to our quality of life. Fierce but fair competition is what drives lower prices at the checkout, better value, fresh offerings and spurs innovation and investment in new technologies,” Billson says. The review panel received around 600 submissions in response to its draft report, 40% came from peak and advocacy bodies, around 30% from individuals, around 25% from business, and the remainder from governments. Four key reactions to Harper Competition Policy Review on parallel imports Australian Automotive Dealer Association AADA responded to the Competiton Policy Review report by noting that the Review Panel recommendation into parallel import restrictions on second hand cars should be removed because in its view, “it fails to quantify the net benefit to the community and ignores the costs of a customs and motor vehicle regulatory regime to maintain Australia’s high standards of consumer protection and consumer safety.” AADA chief executive Patrick Tessier says: “Consumers need to recognise that these vehicles may not come with a manufacturer’s warranty or ANCAP safety rating and consumer choice should be given a lower priority than safety.” “Those vehicles may not be “fit for purpose” in Australia’s harsh climatic conditions, geographical distances and state of roads infrastructure,” Tessier adds. Moreover, he noted: “The authorised dealer network could not be expected to service and repair those vehicles whose specifications and parts are different to a vehicle imported by a full volume manufacturer. Replacement parts, specialised tools and diagnostic equipment may not be available.” “The glow of a cheap purchase will lead to dissatisfaction when a consumer realises that the vehicle may not be insurable, servicing and parts more expensive and the trade-in value substantially below a similar model sold through the authorised network,” says Tessier. Motor Trade Association NSW According to the MTA NSW, the Harper Competition Policy Review has failed to understand the negative impacts that are likely from relaxing regulations on the importation of second hand cars and light commercial vehicles from overseas. “The review’s recommendation to progressively relax restrictions on the importation of secondhand vehicles, whilst being of appeal to used car buyers, may have a detrimental impact not only on the existing value of vehicles but also on the safety standards of motor vehicles,” says MTA NSW chief executive, Greg Patten. “Individual imports of second hand vehicles raise issues such as compliance standards, particularly in relation to safety which also appear to have been missed or ignored by the review,” he adds. CHOICE CHOICE on the other hand strongly supports the final report’s recommendations relating to intellectual property, competition in the taxi industry, and consumer access to data. “These reforms are about delivering Australian consumers better prices and services, especially where some domestic industries have long been shielded from competition,” says CHOICE chief executive Alan Kirkland. This includes the ability to get around so-called online ‘geoblocks’ and access a wider range of products from overseas, removing barriers to parallel imports of cheaper goods, increased price competition in the pharmacy industry and removing regulatory barriers that prevent competition in the taxi sector. Australian Competition and Consumer Commission The Australian Competition and Consumer Commission (ACCC), as was expected, welcomed the release of the Competition Policy Review Panel’s final report. “This is a very important report. It sets out many procompetitive reforms which, if adopted, could significantly enhance economic productivity over the years ahead,” ACCC chairman Rod Sims says. “The Panel’s recommendations to expose more sectors of the Australian economy to competition show the considerable scope for reform. The ACCC particularly supports the Report’s findings on roads, shipping, intellectual property and parallel imports,” Sims says. “The ACCC also supports proposals to make the misuse of market power provision workable, to introduce a prohibition on concerted practices (to tackle cartellike conduct that may otherwise be permitted), and to improve merger assessment processes.” AUTOTALK.COM.AU | APRIL 2015 | 5 NEWSTALK EAI awarded rights to Maserati distribution in South Africa A ustralia-based European Automotive Imports (EAI), owned by New Zealand businessman Neville Crichton, has received the rights to distribute the products and services of Maserati in South Africa from May 1 2015. “We are delighted to be able to announce the appointment of EAI to handle Maserati in South Africa,” says Umberto Cini, managing director of Maserati general overseas markets. Neville Crichton, the Glen Sealey executive chairman of EAI comments: “This is not just an outstanding vote of confidence in what we have achieved in Australia and New Zealand. It is also a clear acknowledgement that we have the people and the expertise to transform Maserati’s position in the South African market to offer a new benchmark for exclusiv- AIMVIA SIGNS FIRST SUPPORTERS T he new body lobbying for the imported vehicle trade – the Australian Imported Motor Vehicle Industry Association – has announced two new financial supporters. The association has signed logistics firm Autohub and vehicle inspection and verfication service JEVIC as its first two ‘foundation supporters’. AIMVIA vice president Ross Pendergast, told AutoTalk the association’s board was very pleased with the new supporters. “There is still a long way to go in terms of what we want to achieve, but this is a very important first big step.” AIMVIA is currently looking for members and foundation supporters – generally members of the import 6 | AUTOTALK.COM.AU | APRIL 2015 ity and dedicated customer service supporting Maserati’s unique range of performance cars.” The launch of EAI in South Africa (EAI SA) is being overseen by Glen Sealey, general manager of Maserati’s EAI operations. EAI-SA will be based in Johannesburg with a South Africa dedicated team managing all aspects of the new business and able to draw on the expertise of the parent company. In addition to running the national distribution of Maserati products and services, EAI-SA will open and run the Johannesburg Maserati dealership. It is seeking partners for representation in Cape Town, with a dealership in Durban planned for 2016. “South Africa holds considerable potential for Maserati and has a wide range of synergies with Australia and supply chain and associated industries. “Both JEVIC and Autohub are also members but also show a greater level of support than just becoming a member, which is vital for the ongoing activities of the association.” Autohub’s international coordinator for New Zealand and Australia, Tony Tiehuis, told AutoTalk that Autohub is happy to be a part of an association that represents the logistics industry. “We see ourselves as a key financial supporter for AIMVIA but also we want to provide advice where we are qualified to provide advice. We have representation in Australia, New Zealand and the UK as well as our head office in Japan, so we can offer advice in our field, which is logistics,” Tiehuis says. “AIMVIA is in the development phase and starting to find their footing, but I believe they will be the key organisation in Australia to represent the vehicle imports industry.” “AIMVIA will end up representing New Zealand well beyond that they are all right hand drive markets,” says Sealey. “These include a larger than average performance market sector, similar specification requirements and customers who demand real exclusivity and high levels of personalisation.” Maserati will be releasing the new Maserati Ghibli, which EAI-SA will launch in middle of this year, and will come with more personalisation choices than any other sector rival. Additionally, next year will see the launch of the new model that will be central to Maserati’s EAI-SA driven renaissance in South Africa, the Maserati Levante SUV. “We will provide South African car buyers with a new level of exclusivity, personal customer service and personalisation that has not been previously available at this level in the market,” Sealey concludes. a broad front for the imports industry, whereas current and previous organisations only represented small sections of the industry, the fact that AIMVIA will encompass all of the industry is a positive step forward,” Tiehuis adds. JEVIC chief executive Euan Philpot says the company is enthusiastic about providing the support. “JEVIC is keen to be an industry supporter and interested in assisting the Australian marketplace and agrees with the aims of the the association around age of fleet, competition, and protecting the consumer. Those are three key things for the association and we are keen to be part of supporting the industry,” Philpot says. “Our support as a Foundation Supporter with AIMVIA is recognised as a long term goal. Both companies currently operate within the Australian vehicle import model and are committed to the continued marketplace access for used imported vehicles. PEOPLETALK How much did Brisbane hailstorm affect used car sector? A ustralia’s oldest and largest undercover car auction house, Brisbane Motor Auctions which is owned by publicly-listed auto sales group A P Eagers Ltd - reveals that due to the Brisbane hailstorm, dealers have a severe lack of inventory coming through to replace stock that they are selling. This lack of stock has translated to great news for the used car auction market and for used car dealerships. “There is an absolute shortage both in Queensland and in New South Wales of good late model quality cars for dealers to replenish their stocks at the moment,” Brisbane Motor Auctions dealer principal, Michael Kennedy told AutoTalk. “We had substantial damage to some of our inner city dealerships in the November hailstorms, and that’s impacted on business and we have had to go out and source new properties to store new vehicles, which has added an extra cost to our operations. “The effect of the Brisbane hailstorm on market conditions in the used car market have pushed car prices up and we are fortunate to have been able to maintain, and in fact increase, our supply at the same time.” Kennedy notes: “The figures from the insurers in Queensland for the Brisbane hailstorm show that “Essentially you have 16,000 cars lost out of the marketplace and they are not available for dealers to have to retail.” 80,000 vehicles were damaged with a large portion of these being written off. So dealers aren’t seeing those vehicles being traded back in.” There have been some which have been repaired, but they’re not been traded. Essentially you have 16,000 cars lost out of the marketplace and they are not available for dealers to have to retail. The effect of not having those cars going back into the used car market place has meant that business has well and truly hit another gear for Brisbane Motor Auctions. Kennedy notes that since the hailstorm hit in November 2014, they are selling an extra 200 to 250 vehicles per month. “It may not sound a lot in the big scheme of things, but when you Continued on page 8 AUTOTALK.COM.AU | APRIL 2015 | 7 PEOPLETALK Continued from page 7 multiply it across all the other auction rooms in Brisbane that’s probably an extra 1500 vehicles per month going out to dealerships through the auction process. “The feedback from used car dealers is that they are not seeing the volume of trade-ins that they traditionally see. They are seeing older cars and cars with hail damage on them which people have cash settled with their insurers. “While the insurer may have written off 25% of vehicles, there are situations where people have a hail damaged car and have settled with the insurer and not bought a new one. “So if the car was worth let’s say $6000, the insurer has given them $3000, they keep the $3000 and drive the car for a few months and go on and trade it in. But the franchised dealer can’t retail and recondition that car firstly because it’s too old and secondly because of the hail damage. And thirdly because the cost of reconditioning is prohibitive. “We are seeing a fair few of those types of cars coming through in our second auction lane and they are being remarketed to the independent price range dealers,” adds Kennedy. “For the past 6-7 months the used car market has been very competitive for late model used cars up to 5-years of age and under 50,000 kms. That will remain consistent going forward. “If and when the big three -Toyota, Ford and Holden - withdraw from Australia and become FULL importers, that’s going to 8 | AUTOTALK.COM.AU | APRIL 2015 have a key impact on the used car industry because there won’t be a lot of the 2 to 3-year old Ford, Holden and Toyota’s available, and it will produce a void in that particular market sector. “Within 18 months of those companies withdrawing from the country, there will be a big shortage of used cars and that will drive wholesale prices up again. This will mean consumers will pay more for used cars again, unfortunately,” says Kennedy Ultimately Kennedy notes: “If we were to have another storm again in October, November or December this year, the trend of used car prices going up will continue. You can almost set your calendar as to when there will be changes in the used car market in Australia, but in Queensland there is always the chance of severe impact by storms. “We are a ‘buy and sell’ auction house where we buy our own stock. However, we do conduct public auctions and represent both corporate and government vendors. Any ‘buy and sell’ auction room that is similar to our operations, that conducts dealer-only auctions, which are located in NSW and Victoria are experiencing at the same trend also.” Brisbane Motor Auctions buys late model used vehicles from as far south as Newcastle in NSW and all the way up to Darwin from the franchised dealer network. PEOPLETALK tening and communicating. “One of the biggest things we have found from our service people and spare parts technicians, is the importance of getting a customer back on the road, listing their concerns, and if there is a problem, rather than ringing them late in the afternoon we contact them early so that we are very clear with our communication and make arrangements for them,” Calvert says. Calvert points out the importance of Renault’s Customer Promise program where it was created so that Renault dealerships would communicate as quickly and effectively as possible with their customers whether it be good or bad news. Justin Hocevar managing director Renault Australia and Don Calvert Essendon Renault. Renault’s top gun AutoTalk spoke to Essendon Renault Dealer Principal Don Calvert fresh from winning the number one Dealer of the Year as well as Commercial Dealer of the Year award. T he dealership was also recognised for delivering more new passenger and commercial Renault’s than any other Renault dealer in Australia, making it the highest selling dealership in Australia. For Calvert the recognition, apart from financial rewards, is that it shows how passionate they are about selling vehicles, and to providing the best customer service. “The other thing we do which is unique is that we are a standalone dealership, most other Renault dealerships are multi-franchised. Some Renault dealers might have three sales staff, but we have five sales people, says Calvert. “Being standalone means you need to have a red hot crack.” Essendon Renault sold 649 vehicles in 2014. In addition, the dealership saw a major uplift in commercial vehicle sales. “What we did there was put two dedicated commercial sales people, one to handle fleet customers and the other to handle tradies and walk in traffic, which was one of the positive moves we made last year.” Calvert expects sales to be even better than in 2014, as there were no new Renault released in the second half of 2014. For 2015, this month Renault just released the all new Renault Captur and will be soon releasing the new model Trafic Van. “We are also about to have an additional service facility built to accommodate our growing customer base. With the growth that we’ve had we have outstripped our service area. We are three months away from opening a brand new service facility to accommodate all our customers. Again we do that because we believe in the brand and the passion we have,” Calvert adds. In terms of customer service Calvert notes that the most important thing is lis- Taking ownership of sales and customer service When AutoTalk asks Calvert to describe the day to day management of the dealership Calvert notes: “All of my management team take ownership, so no one passes the buck. We are all engaged, whether it be parts or service or sales, we all take ownership.” “Myself and my business partner, Peter Morris, we are both proactive on the showroom floor, we don’t sit in the office, we like to get involved with customers, we sell cars, and we are involved in service as well. In the first quarter of 2015, Renault has experienced an increase of 27% on sales compared to the first quarter of 2014. According to Calvert the dealership’s F&I department has also had enormous growth in recent times. “It all comes back to low interest rates, when the manufacturer supports the dealer with low interest rates you see a massive spike in the F&I business,” he adds. Continued on page 18 AUTOTALK.COM.AU | APRIL 2015 | 9 Smart digital tools fo NEWSTALK AutoPlay and TSI Group have teamed up to brin leads with seamless integration between the A CAPTURE CUSTOMER DETAILS Salesperson loads leads into AutoPlay Sales Pipeline & checks for duplicates and pre-existing customers in Autoline PHOTO DRIVER’S LICENCE Photograph the customers licence and sign the test drive terms & conditions MANAGE THE LEAD IN SALES PIPELINE You can set calendar events, keep track of progress and view performance in the Sales Pipeline HOW HAS INTEGRATION HELPED FARMER AUTO VILLAGE? “We have been involved with AutoPlay from the initial concept of the Sales Pipeline. Previously we ran floor logs to capture our enquiry but having 11 brands it was always challenging knowing what was happening across the whole dealership at any one time. With AutoPlay we are now capturing over 7 times more prospect activity as sales people now enter customers details during the sales process. We are able to manage our staff and leads more efficiently and having full transparency over all departments makes dealership management decisions more accurate. We also have TV screens though out the dealership so our team can see all trades, cars that are out on Test Drives and of course sales. We find this keeps every one focused! ” Warren Carter, Sales Manager, Farmer Auto Village 10 | AUTOTALK.COM.AU | APRIL 2015 or sales professionals NEWSTALK ng dealerships end-to-end solution for managing Autoline DMS and the AutoPlay Sales Pipeline LEAD DETAILS SENT TO DMS Every 15 minutes Autoline will update with the lead details sent from the AutoPlay Sales Pipeline to the Autoline DMS AUTOMATIC PROGRESS UPDATES The Progress Item in Autoline will automatically be updated if there are any changes made in AutoPlay DETAILS POPULATED FOR V.O.S.A When you are ready to complete the V.O.S.A all the client, vehicle and lead info will be ready for you to proceed in Autoline WHAT ARE THE BENEFITS OF INTEGRATING AUTOPLAY & AUTOLINE? • Allows the capture of more leads and customer details • Allows salespeople to capture contact details during the sales process without having to re-enter the customers details later • Allows quicker on-boarding of new customers • Saves salespeople time and frustration of double handling – improving buy-in to lead management processes CALL AUTOPLAY (+64 9 361 1505) OR AUTOLINE (1800 221 654) AUTOTALK.COM.AU | APRIL 2015 | 11 E L C I VEH G N I P P I SH S T R E P EX JAPAN TO AUSTRALIA FASTEST IN THE BUSINESS Direct port calls to Brisbane, Sydney and Melbourne. All-inclusive shipping packages available. 30 YEARS INDUSTRY EXPERIENCE GERRY CLAUDATOS // PHONE: 02 8103 4075 // [email protected] // dolphinshipping.com.au Max Pichon NEWSTALK nior AutoTalk’s se ax M t journalis back Pichon looks ’s th on m st on la rvice daily news se lian for the Austra er al de vehicle industry. March 3 Toyota voted most valuable car brand, but Germans close the gap While Toyota has been crowned the world’s most valuable brand, with a brand value of US$35 billion, it is in danger of being overtaken by all three major German auto brands, BMW, Volkswagen, and Mercedes Benz, according to the latest Brand Finance Auto 100 Index. While Toyota hung on to top spot it’s brand value has been affected by product recalls. In 2014 the Japanese carmaker was affected by 7 million product recalls globally. As a result brand value growth has been almost flat, rising less than 1% to just over US$35 billion. Eight auto businesses disqualified from hiring apprentices Eight Melbourne-based automotive businesses have been banned from hiring apprentices after failing to supervise and train their young employees. The apprentices were all employed in the automotive industry and enrolled in the Certificate III in Light Vehicle Mechanical Technology. March 6 Audi opens $3M showroom in South West Brisbane suburb Strong growth in Queensland has given Audi added impetus to keep expanding AUSSIE TALK DIARY in the region as the German carmaker opens its latest showroom in South West Brisbane. Audi, which ended the year with growth of over 40% in passenger cars sales in Queensland has opened a new $3 million showroom in Indooroopilly, situated within the Moggill Road roundabout in the south-west of Brisbane. March 10 Online reviews key to dealership equity Online reviews continue to grow in importance within the automotive industry, with seven out of 10 car shoppers stating that reviews of dealerships are a ‘very’ or ‘extremely’ important part of the research process. To better understand this trend, US-based Cars.com conducted a text analysis using the nearly one million consumer-submitted reviews on its site and uncovered several unique shopper behaviors, as well as opportunities for retailers and manufacturers. Penske targets Aussie dealership acquisitions Having invested heavily in the Australian transport and heavy engine industry and launched a V8 Supercars team, billionaire American Roger Penske has revealed his likely next move here will be to start acquiring automotive dealerships, according tomotoring. com.au. “We need to digest our trucking and transport acquisitions over the next 12 months, but out of the corner of my eye I would say there is an opportunity for retail automotive,” Penske told Australian media during a press conference at the Clipsal 500, where DJR Team Penske made its V8 Supercars debut, with returning star Marcos Ambrose behind the wheel of a Ford Falcon FG X. Penske’s interest would most likely lie in the prestige and luxury area of the market, as that accounts for more than 72% of Penske’s various networks’ global sales. Another 21-22% is accounted for by Toyota, Honda and Volkswagen while GM, Ford and Chrysler brands account for the other 5-6%. AAMI cops $20,400 penalty for misleading advertising AAI Limited (trading as AAMI) has paid $20,400 in penalties after ASIC issued two infringement notices for false or misleading advertisements promoting AAMI car insurance. Each infringement notice imposed a penalty of $10,200. The television and online advertisements included the headline claim ‘AAMI FLEXIPREMIUMS COULD SAVE YOU AN AVERAGE OF $357 OFF YOUR NEW POLICY’ and a verbal representation stating ‘Switch your car insurance and AAMI Flexi-Premiums could save you an average of $357 off your new policy.’ ASIC was concerned that the representations were false or misleading. NRMA study reveals cost of running 2100 vehicles The cheapest vehicle to own and run in both NSW and the ACT is the Hyundai i20 (pictured), according to the National Roads & Motorists’ Association (NRMA) latest version of the Running Costs Calculator survey. The survey, which has revealed the operating costs for 2100 new vehicles for sale in NSW – and for the first time, the ACT – finds that the Hyundai i20 is the cheapest car to run in Australia. Based on 15,000km driven per year, the i20 would cost around $95 per week to own and run. March 11 ShineWing and Moore Stephens join forces ShineWing has launched in Australia, formalising the relationship between Moore Stephens Melbourne and one of China’s largest accounting firms, ShineWing International. Moore Stephens is an accountancy and advisory firm which covers diverse industries including the automotive industry. Moore Stephens has offices across Australia and New Zealand. March 13 ‘Hail sales’ a success in spite of insurer warnings Last year’s huge hail storm in Brisbane has proven to be a huge success for Manheim Australia, which has been conducting ‘hail sale’ auctions on damaged vehicles for the last five months. However, insurers are cautioning people interested in buying hail affected vehicles on the risks of buying a hail damaged vehicle. Charles Cumming, general manager at Manheim in Queensland spoke to AutoTalk and says: “The hail storm in late November 2014 was considered very large, related to motor vehicle damage to insurers. It hit across the Brisbane CBD at peak period on the roads. Regional NSW dealer wins Volvo ‘dealer of the year’ award A regional dealership in Orange, New South Wales, has been named Volvo Car Australia’s ‘dealer of the year for 2014. It’s the first time John Continued on page 14 AUTOTALK.COM.AU | APRIL 2015 | 13 NEWSTALK Continued from page 13 Davis Motors has won the award which was presented at Volvo’s Awards of Excellence gala dinner held at the Sydney Opera House. The award is judged on a tough set of criteria, including outstanding customer service, sales and market share. Dealer principal Ben Davis accepted the award from Volvo Car Australia’s Greg Bosnich and Volvo ambassador Matt Shirvington. Warren Buffett now officially a dealer One of the world’s richest men, Warren Buffett, is now officially a car dealer, with the launch of his dealer group. Buffett, considered an investing icon to many, began acquiring automotive retail operations last year, and has now completed its acquisition of the Van Tuyl Group, the largest privately held dealership group in the United States. The purchase is the largest in the retail automotive industry’s history Tesla unveils buyback program for used Tesla S models Tesla has introduced what it is calling the Tesla ‘Resale Value Guarantee’, a program that assures Australian customers who own a three-year-old Tesla model S that they can sell it back to the manufacturer at a future resale value, which Tesla says “will be among the highest of any premium sedan made in volume”. The program provides a low risk option to eligible customers, allowing them to return their Model S to Tesla at a price that is guaranteed upfront. March 16 Volvo VP aims to be a serious contender in luxury market Volvo Car Group marketing, sales, and customer service senior vice president Alain Visser says the company is targeting production of 800,000 units in the next five to six years as the Swedish manufacturer expands its global footprint. Last year the Volvo brand sold a record 465,000 cars. AutoTalk spoke to Visser briefly last week while he was in Auckland to attend the opening of the new Volvo showroom, which offers a new level of corporate identity that he was responsible for engineering. He also came to see the Volvo Ocean race series while the boats were in Auckland – a happy coincidence with the dealership opening. Audi’s newest Melbourne dealership has lofty standards The final finishing touches have been made to Audi’s latest multi-million Melbourne investment, the brand new Audi Centre Doncaster, which officially opened its doors on March 12. Audi Centre Doncaster features the global Audi ‘terminal’ showroom design with display space for 18 new cars and 35 pre-owned vehicles in the external Audi Approved Plus area. March 18 Zagame re-launches Ferrari Richmond showroom Zagame Automotive has held an event for the relaunch of their newly upgraded Ferrari showroom in Richmond, Victoria. With over 300 guests in attendance, the newly refurbished showroom was buzzing with excitement during an exclusive performance by X-Factor’s Samantha Jade. Guests enjoyed Italian themed food activations, Veuve Clicquot champagne and espresso martinis, a Hublot display and an F1 driver appearance. An auction supporting the Sony Foundation of Australia saw guests 14 | AUTOTALK.COM.AU | APRIL 2015 donate over $100,000. Audi rewards top performing dealerships Audi Australia has revealed it’s top performing dealerships of 2014 at its annual ‘Audi Mark of Excellence’ award celebration. For the first time, the awards also combined the announcement of the nation’s top sales, parts and service managers, business managers, approved plus managers, and sales executives who compete in the annual Audi quattro club awards. Audi Centre Mosman, on Sydney’s North Shore was awarded ‘major metropolitan dealer of the year’. This is the first year the Mosman team has won the prestigious award. March 19 Marketing and sales expert named as new CEO of Ford Australia and NZ Ford of Australia and New Zealand today announced changes in its senior leadership team with it’s current poresident and chief executive officer, Bob Graziano, announcing he will step down from the role after more than 32 years with Ford. Graziano has elected to retire effective April 1. Succeeding Graziano as president, Ford of Australia and New Zealand, will be Graeme Whickman. Whickman is currently responsible for Ford’s marketing and sales activities in Australia, including advertising, dealer relations, customer satisfaction and sales performance. March 20 Man jailed for attempting to blow up Gold Coast dealership A man has been jailed for trying to blow up a Gold Coast car dealership because it wouldn’t fix his car under warranty. Jamie Peter Ripley, 38, planted the three explosives in mid-2013. Two of the pipe bombs were found at the Robina car lot, while the third was in a car that had been driven between the dealership and a mechanic’s workshop. Ripley has pleaded guilty in the District Court in Southport to offences including attempting to destroy property by explosives, and not having authority to possess explosives. Australian Motor Dealer Council formally announced A historic moment took place on March 17 with the official formation of Australia’s first Australian Motor Dealer Council (AMDC). In a meeting conducted at the Sir Jack Brabham Automotive Centre of Excellence in Brisbane, key dealer council chairs representing the top vehicle brands in Australia agreed on the creation of the new council and to support funding for the national secretariat of the Australian Automotive Dealer Association (AADA). March 23 Renault rewards top dealers, plans dealership expansion Renault Australia’s growth in passenger and light commercial vehicle sales has been recognised at the Dealer Brilliance Awards, which have rewarded a dealer network that has been expanding over the past four years. As the brand celebrated breaching the 10,000 sales benchmark in 2014 – the first time any French brand has achieved this volume in Australia – the number of Renault dealers reached a high of 46 active outlets. Continued on page 15 NEWSTALK Continued from page 14 Additional dealers continue to join the brand as it expands into rural and regional centres. March 23 WA consumers warned of unlicensed dealer activity Western Australia’s consumer watchdog, Consumer Protection, has revealed it is concerned about increasing numbers of people in Broome and surrounding areas in WA selling multiple vehicles without a dealer’s licence. A person who sells or exchanges more than four vehicles in a 12-month period may be deemed to be a dealer under the Motor Vehicle Dealers Act. March 24 Gladstone dealership opens its doors to apprentices Tough economic conditions have FORCED businesses in Gladstone, Queensland, to tighten their belts with less places around Gladstone for automotive apprentices. However, Gladstone dealer, Anderson’s Auto City, was so overwhelmed with an influx of applications that seven apprentices have been hired this year. The Gladstone car dealer- ship and service centre has only taken on two to three apprentices annually in the past. Two Ford dealers top awards two years in a row Ron Logan and Cameron McLeish are the only dealers to have won Ford’s ‘Gold Master’ award in the two years since its inception in 2013. March 25 $600M development planned for Parramatta’s Auto Alley Sydney’s popular ‘Auto Alley’ dealership strip will see a number of dealerships close as part of a huge makeover after Parramatta City Council approved plans for a $600 million commercial and residential complex in Parramatta’s Auto Alley. A development application for Church Street Parramatta, will see an avenue of car dealerships transformed into an avenue of apartments. Toyota dealer refuses to fix dashcamenabled cars A Toyota dealership on the New South Wales South Coast is refusing to service or test drive customer vehicles that have an active dashcam on board. Toyota Australia was quick to point out that the policy is not a company-wide initiative. Nowra Toyota has put up a strongly-worded sign informing its customers that they must disable any type of recording equipment they have running in their vehicle before they drop their car off, according to the Daily Telegraph. ment, it would have been impossible to establish the current AADA in as quick and effective a manner as we have over the past 12 months,” he says. March 26 Richmond SKODA wins inaugural ‘dealer of the year’ award Qld used car dealer back on top thanks to new legislation Queensland-based Helland’s Wholesale Cars dealership has had a good start to the year thanks to legislation passed last year which makes it easier for dealerships to sell used cars and cuts red tape. The dealership has decades of experience in Ipswich and has been through the good and bad times. Right now is a great time for used cars and it is keeping Jeff Helland on his toes. Patrick Tessier makes way for permanent AADA CEO The time is now right for the Australian Automotive Dealer Association (AADA) to seek a permanent CEO, following the success of interim chief executive officer, Patrick Tessier, in helping to establish the association. “Patrick has done what he set out to do,” says AADA chairman Ian Field. “Without Patrick’s involve- March 27 Bobby Zagame, dealer principal, has won the first-ever ŠKODA Australia National Dealer of the Year award given out by ŠKODA Australia director, Michael Irmer. Irmer praised the efforts of the Richmond ŠKODA dealership team for their excellent sales and customer service performance in 2014, and for their ongoing support and investment into the ŠKODA brand in Australia. AHG appoints experienced car dealer to board Automotive Holdings Group has announced the appointment of Sydney businessman Greg Duncan to the board. Duncan is known in the automotive industry as a well respected automotive retailer and business leader. As a chartered accountant, investor and consultant, he was a director and shareholder of the Trivett group of prestige dealerships for many years before purchasing outright ownership in 2001. All the Auto Industry HOT NEWS every day as it happens on www.autotalk.com.au Subscribe online for FREE twice weekly updates direct to your email AUTOTALK.COM.AU | APRIL 2015 | 15 NEWSTALK Making waves for Australian used car importers D olphin Shipping Australia has announced its entrance to the market to provide Australian car dealers with an alternative vehicle shipping and logistics service between Japan and Australian shores. With Dolphin Shipping entering the market to provide competition, Australian vehicle dealers stand to benefit from all-inclusive shipping and logistics packages that will bring faster transit times and an independent, customer-focused approach. Sales and marketing manager, Gerry Claudatos, explains what gives them the edge over traditional competitors: “Apart from being independent of any export agent in Japan, our real differentiation comes with the overall transit times. We are able to call the three main ports - Brisbane, Port Kembla and Melbourne - directly from Japan. Our advantages here are overall quicker shipping transit times and less handling. “To Port Kembla and Melbourne, our service is quicker with transit times and dates fixed to a set fortnightly rotation, giving our customers accurate arrivals dates and no transhipment movements, which is a huge benefit to customer planning. It also means their vehicles are not doublehandled giving less exposure to potential damage.” Dolphin Shipping’s all- inclusive packages include biosecurity pre-clearance in Japan, full ocean freight (including all of the shipping line surcharges), marine insurance cover, port service handling, document handling and customs clearance. Additional services also include pre-shipment air-conditioning de-gassing in Japan, and vehicle transport from port of arrival in Australia. Operating in Australia for more than six months, Dolphin Shipping has been keeping its head below the radar until now. As Claudatos explains, the timing is now right to make inroads into the Australian market and offer a competitive shipping and logistics service from Japan. The potential deregulation of the imported vehicle industry in Australia, and a recent opportunity to offer services to a large player in the vehicle logistics industry in Australia, has given Dolphin Shipping the impetus needed to make a launch into the market. “We are delighted to have Maltacourt Vehicle Logistics on-board with us and using our services. Maltacourt has been operating for 11 years and has an extensive customer base of Japanese used car importers throughout Australia. Maltacourt offer a wealth of experience and enthusiasm to the industry and we cannot speak more highly of 16 | AUTOTALK.COM.AU | APRIL 2015 them and what they do.” Maltacourt owner and ceo David Parfitt, and operations manager Graeme Jenkins, have provided a committed and customerfocused service to their customers from day one, and a recent change to their service offering from Japan has opened up a great opportunity to work in with Dolphin Shipping that will enable them to continue their service. Dolphin Shipping are also looking to roll out additional services in the coming months which will provide more benefits to used car importers in Australia. This includes a customer loyalty programme and extending shipping and logistics services from other countries into Australia. For more information regarding Dolphin Shipping, Maltacourt and the services available, please contact: DOLPHIN SHIPPING AUSTRALIA PTY LTD Phone: +61 (0) 2 8103 4075 www.dolphinshipping.com.au GERRY CLAUDATOS SALES AND MARKETING MANAGER E: [email protected] MALTACOURT AUSTRALIA PTY LTD T: +61 (0) 2 9700 0100 F: +61 (0) 2 9700 0530 www.maltacourt.com.au DAVID PARFITT CEO E: [email protected] GRAEME JENKINS OPERATIONS MANAGER E: [email protected] NEWSTALK Big changes will transform auto dealer industry of the future A call to action has been made for the automotive industry: “Change now while times are good.” In a presentation at the 2015 Automotive Forum in New York City, Cox Automotive president Sandy Schwartz issued this call to action. Building on insights from US Autotrader’s just-released Car Buyer of the Future study, Schwartz emphasised that consumers are coming to the car-buying process with expectations shaped by their increasingly digital experiences with other products. “Consumers are expecting more control and convenience in the car shopping, buying, and ownership experience,” Schwartz says. “While there have been significant improvements in the way consumers can research and shop for vehicles, large portions of the buying and ownership processes have not really changed over decades. “Now is the time for the automotive industry to address rapidly changing consumer preferences, and invest while times are good. “The industry is experiencing robust sales across new, used and CPO vehicles, making now the ideal time to invest for the future,” Schwartz adds. The key finding in US Autotrader’s Car Buyer of the Future study reveals that only 17 out of 4002 people prefer the current car buying process, and the rest want significant changes. Autotrader is sharing the findings of the study to aid in the industry’s understanding of consumer behaviour and help dealers and manufacturers prepare to meet the needs of tomorrow’s car buyers. “While there is good work going on right now to adapt decades-old sales processes, consumers are telling us that we as an industry are not moving fast enough,” says Jared Rowe, president of Autotrader. “By recognising - and embracing - the need for change, we have a tremen- dous opportunity to surprise and delight our consumers.” According to the study, four areas where consumers desire significant change are in the test drive, deal structuring, vehicle service, and financing paperwork: Test drives: Only 19% prefer the method that is prevalent today (test drive a single make, accompanied by a sales person). Ideally, consumers would like to be able to test drive multiple vehicles across makes in a single location and without being pressured into making a purchase. Even if dealers don’t invest in huge test drive centres, they can give consumers more control. Deal structuring: When it comes to structuring deals, only 14% prefer the current process, which is where the full deal is discussed and negotiated on the lot. A significant number of buyers prefer to start the deal structuring online and remain anonymous until they are comfortable with the terms. Vehicle service: Today, only 8% of consumers prefer to service their vehicle at the dealership where they purchased. In the future, consumers would like to have access to a “local service network” where service agreements they receive at the time of purchase are honoured across several dealerships. This would enable them to service their vehicle at a location that is close to them - wherever they happen to be. The key is convenience. Financing paperwork: Nearly three fourths of consumers, 72%, want to complete the credit application and financing paperwork online. The key factors driving this desire are to save time at the dealership (reported by 72% of those who favour online paperwork) and to have less pressure while filling out paperwork (reported by 71% of those who favour online paperwork). A separate study conducted by Cox Automotive in 2014, showed that the time buyers spend in the F&I office averages 61 minutes, more than two thirds the Continued on page 18 AUTOTALK.COM.AU | APRIL 2015 | 17 NEWSTALK Continued from page 17 total amount of time they want to spend at the dealership (90 minutes). Moving paperwork online and enabling consumers to complete it on their own time would greatly enhance the in-dealership experience and cut down on the time they spend in the dealership on the day of purchase. “There is a clear and present benefit for those who do, and we at Cox Automotive will be making our own investments in developing tools and technologies that will usher in the future of car buying,” Shwartz concludes. Dispelling myths Some commonly held beliefs about the future of car buying are that sales people will be less important in the future; consumers don’t want to negotiate; and that lowest price will always win. In fact, the study shows the opposite. Myth #1: Sales people will be less important in the future. In fact, the dealership and its sales people will continue to play a very important role in the car buying process - 84% of consumers in the study indicate that they want to buy a car in person. Further, 43% see the dealership as a place to learn. At the dealership, consumers want to validate information they found online and learn about the following: specials, offers, warranty and service. Myth #2: Consumers don’t want to negotiate. Over half, 56%, of consumers prefer to negotiate, according to the study, and two of the most influential groups in car buying - millennials and females - also prefer negotiating over flat rate pricing. This is a result of the fact that consumers do not yet trust flat rate pricing, and they feel that they have to negotiate to get a fair price. Myth #3: Lowest price will always win. While price is important to consumers, the dealership experience can trump lowest price: 54% say that they would buy from a dealership that offered their preferred experience over lowest price. Additionally, 73% report that they are willing to drive further for a great salesperson, versus 65% who are willing to drive to get the lowest price. The benefits for dealers and manufacturers who adapt are clear. Dealers and manufacturers who focus on creating - and ultimately deliver - a better shopping and buying experience can reap significant benefits, according to the study: Nearly three fourths (72%) of consumers say they would visit dealerships more often if the buying process were improved. Two thirds (66%) of consumers say that they would be much more likely to buy from a dealership that offers their preferred experience. Over half (53%) of consumers would buy a vehicle more often if the buying process were improved. “The sales environment is expected to remain strong across new, used and CPO cars over the next few years, and it is exciting to see that we have several ways to enhance the consumer experience for the benefit of all involved - buyers, manufacturers and retailers. At Autotrader, we will continue doing our part and working closely with our customers and partners to usher in that new reality,” Rowe adds. RENAULT’S TOP GUN Continued from page 9 “Buying a new car today is the least expensive it’s been in the 40 years that I’ve been selling motor vehicles. For $20,000 you get a hell of a lot of bang for your buck, add to that longer car servicing intervals, unlimited 5 year warranty, and fixed price servicing for the first time 18 | AUTOTALK.COM.AU | APRIL 2015 ever. The cost of ownership for a vehicle today, whole of ownership life, is the least expensive it has ever been,” Calvert concludes. In 2014, Renault Australia delivered in excess of 10,000 units, which was the biggest result ever in Australia, and this year the aim is to get to 13,000. NEWSTALK AADA Conference to feature Dealer Symposium and world’s best closer T his year the AADA 2015 National Dealer Convention will be heading to Melbourne and will feature a never before seen three-hour AADA Dealer Symposium. The Convention will be held from Monday 10 August to Wednesday 12 August. Starting after breakfast on the first day of the Convention, the Dealer Symposium is a closed event, which will be attended exclusively by dealers. As part of the session, dealers will have access to some of the best minds in the industry along with the opportunity to raise questions and concerns among peers and speak freely about current industry issues. The initial session will see Robert H. Kurnick Jr. who is Penske Automotive Group President. Kurnick Jr. will open the AADA Dealer Symposium with a keynote address at 9 10am. Penske Automotive is the world’s second largest automotive dealership group, representing over 40 brands and more than 320 franchises. A Fortune 500 company with over 20,000 employees, Penske Automotive Group operates not only in the US, but parts of Western Europe, and it distributes commercial vehicles and parts in Australia and New Zealand. Kurnick has been at the helm of the company since 2008, and has served in various positions in the company over the past 20 years. In his address, Kurnick will draw on his vast experience, sharing his thoughts on the current state of the automotive landscape both here and abroad. Honest and engaging – Dealers will benefit greatly from Kurnick’s insights, not to mention the Q+A session that will take place after his address. Don’t miss it! The second presentation will begin at 9:40am and will reveal the National Dealer Attitude Survey results. In this session, the results of the nation-wide dealer attitude survey (to be conducted in April 2015) will be released. The survey, which asks important questions about the value dealers see in their franchises, will shed light on the mood of the industry. The results of this landmark survey will be delivered by BDO Australia, in what will be a must-attend session. A special presentation will be held at 10 30 titled, “National Benchmarks for Dealership Operations and Critical Indicators Through 2017” Finally, at 11:15am the Australian Motor Dealer Council & AADA Policy Action Plan will be revealed. World’s ‘best closer’ to reveal tricks of the trade The AADA Convention this year will feature what it calls the World’s Best Closer, George Dans, who will give a special presentation demonstrating how to close more sales, more often. “Dans is here to equip you with the skills you need to put the fire back into your sales game. Learn how to build value, persevere through rejection, communicate with conviction and become the salesperson you want to be,” says AADA. According to AADA’s convention website: “With 20 years of experience, Dans helps dealerships improve their operations through boosted sales, profit and team performance around the world. This includes passing on his proven methods on a factory level to Toyota, Honda, Daimler Chrysler and Kia with incredible results.” On Monday August 10, attendants will have the opportunity to get inside the mind of Dans, gaining invaluable tips to arm their dealership with powerful closing ability and sales skills that can be filtered throughout all levels of operation. Tickets to the workshop are available for $99 each. To attend the event you, or at least one member from your dealership, must be registered as an AADA 2015 National Dealer Convention delegate. The 2015 AADA Convention will be held at the Melbourne Convention and Exhibition Centre. For more information on the 2015 AADA Convention visit http:// www.aadaconvention.com.au/. AUTOTALK.COM.AU | APRIL 2015 | 19 PEOPLETALK “Data beats opinion” when making the big decisions D ata drives your dealership in many different ways, whether it is in the form of numbers, knowledge and experience, or your database. For every dealer it will be a lot of the data that keeps them in business: • How many sales this month? • How many deliveries have been done? • What is the average gross on deals? • How much has been spent on advertising? • How many R/O’s have been processed? You get the picture. The bigger question that should be discussed in today’s online market however are “how much more data do you now have access to, and what are you planning to do with it to maximise your sales opportunities in the future?” We now live in the Big Data world. At carsales, data has always been the cornerstone of our business; in the decisions we make, the products we develop and most importantly, the core of our interactions with our dealers. Today the majority of an individual’s activity is online and the mantra I’m forever using with my team is “data beats opinions”. Without data, we fly blind. As a dealer, you need as much visibility as possible in the online world. Educating yourself and your teams on what is available to you at your fingertips – right now– will be critical to your sales opportunities and conversion ability in the future. You’ll know what it takes to get more customers over the line. Up until recently, many dealers have tended to be reactive to the online selling space; however those who have seen the value, gone looking for data (or proof), and jumped-on at an early stage are likely to now be outperforming those who are still ‘reacting’. Data enables business decisions to become more informed and less 20 | AUTOTALK.COM.AU | APRIL 2015 emotional. The Internet offers the capability of collecting so much more information from prospects; remember when asking for a name and phone number was more than acceptable? Today it’s a very different environment; an individual’s ‘digital footprint’ can be noted, tracked, monitored and directed, purely based on what content is presented to them on the screen. sized dealership the principles of selling stay the same. What you do with the information you have access to, or go looking for however, will be what can help to drive your sales success. Simply collecting data however is not enough. You need to know what to do with it. If you don’t analyse the data, all you are doing is paying for storage. This is where great software comes in, because it doesn’t just help you collect data, it provides you with a colourful view of what that data means. No longer will it simply show By Chris Polites, dealer you how many enquiries you’ve director, carsales.com.au received or how many cars you’ve [email protected] sold; it goes deeper, giving you the ability to generate more opportunities for your sales teams Consider this; you’re looking for a even before the consumer is ready to new Mazda 3 and have come across consider a new purchase. your local Mazda franchise dealer For example, knowing that a vehicle website. After having a look around has been online for 76 days, with 920 at their stock, you then move off their views and 1 enquiry should be enough site onto Ninemsn or Facebook etc. to to set off an alarm bell. carry on with your day. Unbeknown However add to that data around to you, that dealership has been able where that vehicle sits in the market for pricing, days’ supply and enquiry performance, you now have a better “How much more data do view of what can (and should) be done you now have access to, to get that car out the door. and what are you planning Data beats opinion. Data beats that to do with it to maximise ‘gut feeling’ we’ve always relied on because it shows us the proof. It will your sales.” be this data that enables you to write to track and analyse your activity, better ads, take better photos, choose continuing to do so for almost 30 days more sellable stock and put them on after your initial visit to their site. the market at a stronger price point. The dealer can now continue to Understanding the data will help you present you with a Mazda 3 ad on sites grow your business, develop your sales you are regularly visiting; in basic terms team and create efficiencies that make they’re following you and talking to your business easier to buy a car from. you directly – without having to pay for So as a business owner or Sales mass marketing. How powerful is that Manager I encourage you to become as a sales tool? And it all comes down a better user of your software and data to the data collected! platforms, ask more questions of the Now, for those of you thinking right people around what information “mate, you lost me at digital footprint”, you can get your hands on. don’t worry. You can still be highly But don’t just collect more data for successful in running an online sales the sake of it, continue to learn the best department without this level of techways to analyse and make informed nology. decisions from what you’re gathering. Whether you’re a large or small Make big data work for you. STATSTALK VEHICLE SALES BY STATE – MARCH 2015 SOURCE: VFACTS – FCAI MONTH YTD Variance +/- Vol. & % Total Market 2015 2014 2015 2014 MTH YTD MTH YTD AUSTRALIAN CAPITAL TERRITORY 1,626 1,471 4,442 4,352 155 90 10.50% 2.10% NEW SOUTH WALES 33,773 30,640 89,544 85,298 3,133 4,246 10.20% 5.00% NORTHERN TERRITORY 1,064 998 2,603 2,502 66 101 6.60% 4.00% QUEENSLAND 22,499 20,073 57,281 54,100 2,426 3,181 12.10% 5.90% SOUTH AUSTRALIA 6,173 6,200 17,127 16,856 -27 271 -0.40% 1.60% TASMANIA 1,560 1,457 4,333 4,000 103 333 7.10% 8.30% VICTORIA 28,536 26,311 75,489 71,011 2,225 4,478 8.50% 6.30% WESTERN AUSTRALIA 9,823 10,117 26,775 28,251 -294 -1,476 -2.90% -5.20% Total 105,054 97,267 277,594 266,370 7,787 11,224 8.00% 4.20% VEHICLE SALES BY SECTOR – MARCH 2015 MONTH YTD Variance +/- Vol. & % 2015 2015 2014 2015 2014 MTH YTD MTH YTD Passenger 48,185 47,076 128,759 132,324 1,109 -3,565 2.4 -2.7 SUV 35,503 30,781 95,221 82,545 4,722 12,676 15.3 15.4 Light Commercial 18,429 16,740 46,883 44,821 1,689 2,062 10.1 4.6 Heavy Commercial 2,937 2,670 6,731 6,680 267 51 10 0.8 Total Market 105,054 97,267 277,594 266,370 7,787 11,224 8 4.2 MONTH YTD Variance +/- Vol. & % Micro 953 1,789 2,758 5,065 -836 -2,307 -46.7 -45.5 Light 11,269 9,411 29,399 25,440 1,858 3,959 19.7 15.6 Small 21,166 21,711 59,650 63,549 -545 -3,899 -2.5 -6.1 Medium 7,058 6,220 17,552 16,226 838 1,326 13.5 8.2 Large 4,011 4,350 10,488 11,973 -339 -1,485 -7.8 -12.4 Upper Large 255 293 659 883 -38 -224 -13 -25.4 People Movers 959 900 2,530 2,643 59 -113 6.6 -4.3 Sports 2,514 2,402 5,723 6,545 112 -822 4.7 -12.6 SUV Small 9,553 7,704 26,058 19,948 1,849 6,110 24 30.6 SUV Medium 12,800 10,786 33,243 29,079 2,014 4,164 18.7 14.3 SUV Large 11,973 11,220 32,966 30,549 753 2,417 6.7 7.9 SUV Upper Large 1,177 1,071 2,954 2,969 106 -15 9.9 -0.5 Light Buses < 20 Seats 258 311 702 556 -53 146 -17 26.3 Light Buses => 20 Seats 71 51 176 158 20 18 39.2 11.4 Vans/CC <= 2.5t 287 307 896 744 -20 152 -6.5 20.4 Vans/CC 2.5-3.5t 1,435 1,381 3,947 3,625 54 322 3.9 8.9 PU/CC 4X2 3,714 4,112 9,414 10,877 -398 -1,463 -9.7 -13.5 PU/CC 4X4 12,664 10,578 31,748 28,861 2,086 2,887 19.7 10 Heavy Commercial 2,937 2,670 6,731 6,680 267 51 10 0.8 Total Market 105,054 97,267 277,594 266,370 7,787 11,224 8 4.2 AUTOTALK.COM.AU | APRIL 2015 | 21 STATSTALK FCAI MOTORCYCLE GROUP - NATIONAL SALES REPORT COMPARISON REPORT JANUARY - MARCH 2015 COMPARED WITH JANUARY - MARCH 2014 Manufacturer Aprilia Arctic Cat BMW Buell BRP Australia Ducati Royal Enfield Gianco Harley Davidson Honda Husaberg Husqvarna Hyosung Indian Kawasaki KTM Kymco MCI Moto Guzzi Norton PGO Piaggio Polaris QJ Suzuki SYM Torino Triumph Vespa Victory VMoto Yamaha ZNEN Others TOTAL ATV OFF ROAD ROAD YTD YTD % YTD YTD % YTD 2015 2014 CHANGE 2015 2014 CHANGE 2015 55 49 48 2.1 840 0 386 375 2.9 357 9 1115 835 33.5 338 336 0.6 66 97 -32.0 966 958 0.8 503 496 1.4 739 760 2219 1483 49.6 14 173 -91.9 343 456 -24.8 836 1222 905 -7.6 1430 -14.5 1086 912 19.1 -2.8 1971 2177 -9.5 4162 4312 -3.5 24 7715 29 -17.2 7565 2.0 YTD 2014 119 SCOOTER % YTD YTD CHANGE 2015 2014 -53.8 128 184 TOTAL % YTD CHANGE 2015 -30.4 183 49 15.0 23.0 -34.8 855 0 386 357 9 0.0 13.0 -100.0 0 2165 272.0 300.0 -9.3 5861 14 350 121 90 2771 1592 209.0 210.0 -0.5 295 89.0 157.0 -43.3 89 62 25 2.0 0.0 100.0 2 264.0 382.0 -30.9 264 966 0 35.0 14.0 150.0 2325 63.0 236.0 -73.3 63 20.0 96.0 -79.2 22 790 298.0 337.0 -11.6 298 101 21.0 27.0 -22.2 21 113.0 110.0 2.7 4298 1.0 23.0 -95.7 1 32.0 81.0 -60.5 80 1562 2405 -35.1 24505 677 1 24.1 -100.0 466 69 -23.4 -87.0 2165 2255 2069 2161 4.6 4.3 7 121 90 1597 370 20 87 177 107 1641 511 42 -92.0 -31.6 -15.9 -2.7 -27.6 -52.4 62 25 87 0 -28.7 100.0 0 701 5 752 -100.0 -6.8 2 790 6 705 -66.7 12.1 101 112 -9.8 1475 1275 15.7 24 11066 79 11327 -69.6 -2.3 YTD 2014 303 48 700 1 375 466 69 13 2069 4779 173 543 177 107 2882 1941 349 157 87 0 0 382 958 5 2174 236 102 705 337 112 27 4322 23 189 24811 % CHANGE -39.6 2.1 22.1 -100.0 2.9 -23.4 -87.0 -100.0 4.6 22.6 -91.9 -35.5 -31.6 -15.9 -3.9 -18.0 -15.5 -43.3 -28.7 100.0 100.0 -30.9 0.8 -100.0 6.9 -73.3 -78.4 12.1 -11.6 -9.8 -22.2 -0.6 -95.7 -57.7 -1.23 Honda leads on and off road motorbike sales in 2015 A ustralians are continuing to buy off-road motorcycles as the figures show that sales are up 2% on first quarter 2015 for purchases of off-road motorcycles. The 7715 off-road bike sales represented just over 31% of the total motorcycle, all-terrain vehicle (ATV) and scooter market, which totalled 24,505 between January and March 2015. The 24,505 sales are just 1.2% less than the all time sales recorded of January and March quarter of 2014. FCAI chief executive Tony Weber said Honda was the leading volume manufacturer with 5861 units sold. Honda’s market share has risen from 19.3% in the first quarter of 2014 to 23.9% in the first quarter of 2015. Honda was followed by Yamaha with 4298 units, Kawasaki with 2771 units and Suzuki with 2325. 22 | AUTOTALK.COM.AU | APRIL 2015 “Honda led the volume race in the off-road motorcycle market, selling 28.8% of the total sold. Honda was followed by Yamaha with 25.5% sales. KTM was third, selling 15.8%” Weber says. “Looking at the road motorcycle market, Honda was again the leading brand, selling 20.4% of the 11,066 road motorcycles sold between January and March 2015. HarleyDavidson was close behind in second place, selling 19.6%. Harley-Davidson was followed by Kawasaki with 14.4% and Yamaha with 13.3%. Overall, the 11,066 road motorcycle sales represents a 2.3% decline on first quarter 2014 sales figures. “ATV sales were also down slightly, with 3.5% less ATVs sold between January and March 2015, than in the same period in 2014. STATSTALK March breaks sales record for all the right reasons A ustralia has recorded its strongest March on record with new car sales up 8% on March 2014 figures. The total 105,054 sales is the largest March sales market ever recorded. The strong results coincide with the March 2015 release of CommSec’s Car Affordability Index, which found car affordability is the best it has been in the 40 years since the Index began. Releasing the March 2015 new car sales figures, FCAI chief executive Tony Weber said the popularity of SUVs and light commercial vehicles shows no signs of slowing down with sales in the SUV segment up 15.3% on March 2014 sales, and up 15.4% year-to-date. VEHICLE SALES BY PERCENTAGE OF MARKET – MARCH 2015 MONTH Passenger YTD Variance +/Vol. & % 2015 2014 2015 2014 MTH YTD 45.9 48.4 46.4 49.7 -2.5 -3.3 SUV 33.8 31.6 34.3 31 2.1 3.3 Light Commercial 17.5 17.2 16.9 16.8 0.3 0.1 Heavy Commercial 2.8 2.7 2.4 2.5 0.1 -0.1 Total Market 100 100 100 0 0 MONTH Micro 100 YTD Variance +/Vol. & % 2015 2014 2015 2014 MTH YTD 0.9 1.8 1 1.9 -0.9 -0.9 Light 10.7 9.7 10.6 9.6 1.1 1 Small 20.1 22.3 21.5 23.9 -2.2 -2.4 Medium 6.7 6.4 6.3 6.1 0.3 0.2 Large 3.8 4.5 3.8 4.5 -0.7 -0.7 Upper Large 0.2 0.3 0.2 0.3 -0.1 -0.1 People Movers 0.9 0.9 0.9 1 0 -0.1 Sports 2.4 2.5 2.1 2.5 -0.1 -0.4 SUV Small 9.1 7.9 9.4 7.5 1.2 1.9 SUV Medium 12.2 11.1 12 10.9 1.1 1.1 SUV Large 11.4 11.5 11.9 11.5 -0.1 0.4 SUV Upper Large 1.1 1.1 1.1 1.1 0 -0.1 Light Buses < 20 Seats 0.2 0.3 0.3 0.2 -0.1 0 Light Buses => 20 Seats 0.1 0.1 0.1 0.1 0 0 Vans/CC <= 2.5t 0.3 0.3 0.3 0.3 0 0 Vans/CC 2.5-3.5t 1.4 1.4 1.4 1.4 -0.1 0.1 PU/CC 4X2 3.5 4.2 3.4 4.1 -0.7 -0.7 PU/CC 4X4 12.1 10.9 11.4 10.8 1.2 0.6 Heavy Commercial 2.8 2.7 2.4 2.5 0.1 -0.1 Total Market 100 100 100 100 0 0 “Light commercial vehicle sales increased 10.1% compared to March 2014 sales. Year-to-date, light commercial vehicles are up 4.6%,” Weber says. The auto sector saw purchases of light commercial vehicles increase significantly in March 2015, with sales up 33.4%. Private purchases of SUVs increased 15.6%, and private purchases of passenger cars decreased 1.9%. Business buyers were drawn to passenger cars and SUVs last month, with sales up 9.3 and 10.9% respectively. Business purchases of light commercial vehicles fell 4.4%. Government buyers purchased 4.4% more passenger cars, 17.7% more SUVs and 9.9% more light commercial vehicles. Sale in the Australian Capital Territory and New South Wales were up more than 10%, sales in Queensland up 12.1%, the Northern Territory was up 6.6%, Tasmania 7.1% and Victoria 8.5%. A slight fall of 0.4% was recorded in South Australia and a fall of 2.9% in Western Australia. Toyota was the highest selling brand in March 2015 Continued on page 24 AUTOTALK.COM.AU | APRIL 2015 | 23 STATSTALK Continued from page 23 with 18.2% of the market. Toyota was followed by Mazda with 9.7%, Hyundai with 8.3%, Holden with 8.2%, and Nissan with 6.8%. The Toyota Corolla was the top selling car in March 2015, with 4261 vehicles sold, followed by the Mazda3 (3558), Toyota Hilux (3346), Mitsubishi Triton (2940) and Holden Commodore (2436). Eight of the Top 10 brands posted increases while Holden and Ford had sales declines of 13% and 14.4% respectively. Most luxury brands, on the other hand, continued to see sales rise with Audi (up 22.4%), BMW (up 14.4%), Mercedes-Benz (up 29.5%) and Porsche (up 86.7%) all posting increases that outpaced the market, according to VFACTS. Mazda sees sales boost on back of SUV strength One of the biggest winners in March was Mazda with the release of the firstever Mazda CX-3, which helped Mazda post an alltime sales record of 10,217 retails in March pushing first quarter sales to a record 28,280. The 28,280 vehicles sold in the first three months of 2015 represent the highest ever quarter of sales for Mazda in Australia. It surpasses the 26,513 vehicles sold in first quarter 2012 – which led to a record annual sales tally of 103,886 – and beats last year’s first quarter benchmark of 27,785. Helping take Mazda sales past 10,000 in a month for only the second time, the First-Ever Mazda CX-3 delivered incremental sales growth, accounting for 814 retails during the small SUVs first nine days of sales, while the core group of Mazda nameplates again hit over 9000 units for the third time this year. Not to be left behind, the bigger CX-5 sales increase continued in March with 2344 SUVs finding new homes. This was CX-5’s best month ever, passing the 2211 posted in June last year. The Mazda2 reached 1357 sales last month, passing 4000 retails for the year, while BT-50 posted a March record 1278 sales, the best month since August 2013 for the Ute. Volkswagen sales up 19% for March Volkswagen finished the first quarter of 2015 with growth of over 19% in March compared to the same month in the previous year buoyed by strong sales of Polo, Golf, Jetta and Passat models. John White, managing director, Volkswagen Group Australia says: “2015 has so-far delivered Volkswagen substantial sales growth every month, and I am extremely pleased with our current performance.” “The Polo is currently enjoying great success with our customers, and we look forward to expanding this range when we introduce the new Polo GTI later this month,” White adds. Mitsubishi has best first quarter on record Mitsubishi Motors Australia continued its trend of higher than expected sales growth with sales of 6307 units in March, placing it 6th overall in the Australian new 24 | AUTOTALK.COM.AU | APRIL 2015 VFACTS Top 10 car brands in March Toyota 19,082 — up 4.4% Mazda 10,217 — up 11% Hyundai 8709 — up 1.2% Holden 8571 — down 13% Nissan 7138 — up 18.7% Mitsubishi 6307 — up 16% Ford 6023 — down 14.4% Volkswagen 5525 — up 19.8% Honda 4042 — up 75.4% Subaru 4002 — up 5% VFACTS Top 10 vehicles in March Toyota Corolla 4261 — up 4.3% Mazda3 3558 — down 0.8% Toyota HiLux 3346 — up 7.7% Mitsubishi Triton 2940 — up 8.4% Holden Commodore 2436 — down 17.9% Ford Ranger 2424 — up 5.3% Mazda CX-5 2344 — up 21.3% Toyota Camry 2319 — up 11.2% Hyundai i30 2098 — down 24.2% Volkswagen Golf 2084 — up 66.5% car market. Year-to-date Mitsubishi has sold 16,629 units, which is the company’s best import-only first quarter on record. Mitsubishi had a great month by setting a new all-time March record for LCV sales. In March, total Triton sales came to 2940 units, while Triton 4x4 was the highest selling model in its category with 2452 units sold. Triton achieved 19.4% share of the 4x4 LCV segment, up by 150% versus March last year. Meanwhile, Triton 4x4 sales were up 80% year-to-date with 4947 units sold in 2015 so far. Mitsubishi SUV sales continued to perform well. ASX was the highest-selling Mitsubishi SUV with 841 units, followed by Outlander with 769 units. Both models recorded strong monthon-month growth. Overall, Mitsubishi’s SUV sales grew 5.2% compared to March last year and 43.3% versus 2014. Mitsubishi Motors Australia director of sales Greg Cook said the solid start to the year puts the company in a strong position for the introduction of its heavily revised Outlander SUV and new-generation Triton. “It’s great that we’ve broken a few of our own records this month and started 2015 with a really strong first quarter,” he says. “Our March result was up 16.1% versus March 2014, and we’re 16.7% ahead on a year-to-date basis. This gives us even more confidence as we move towards launching the 2016 Outlander and Triton new model ranges,” adds Cook. GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE SERIOUS ABOUT JPN TO AUS • • • • Two Sailings per Month Benefits of Large Volume Pricing Specialise in Global Vehicle Logistics We offer you the easiest way to ship your car into Australia For More Information Contact: Daryl McIntyre [email protected] www.autohub.co/au 1300 132 227 [email protected]
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