CarsGuide, Dealer Solutions and Manheim to fall under Cox banner - Autotalk
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE VEHICLE DEALER’S NEWS SOURCE VOLUME 3 ISSUE 1 AUGUST 2016 CarsGuide, Dealer Solutions and Manheim to fall under Cox banner Three of the bigger names in the Australian automotive industry services space are set to merge under one umbrella operation. I nternational firm Cox Automotive “This exciting news is yet another has announced that it has formed sign of Cox Automotive’s commit- Cox Automotive Australia, which will ment to the local markets in Australia include its fully-owned Manheim busi- and New Zealand. As part of Cox ness, Dealer Solutions, which it took a Enterprises, a global firm with 55,000 stake in earlier this year, and CarsGuide. employees and revenues of more News Corp Australia confirmed than $18 billion (USD), we can actively this morning that it is selling its 50% support local clients with the re- stake in the CarsGuide vehicle listing sources of one of the world’s leading business to Cox. The rest is owned by automotive services company.” members of the automotive trade. “Cox Automotive has identified Cox and CarsGuide have signed Australia and New Zealand as growth agreements with a view to complet- markets and the confidence in our ing the transaction by the end of 2016, people, our performance and our after working through the necessary brands has enabled this significant regulatory and legal requirements. investment in the future growth of our Sandy Schwartz Campbell Jones, chief executive of group of companies.” president of Cox Automotive Manheim Australia and New Zealand “We can simplify the trusted ex- says the acquisition of Dealer Solutions change of vehicles and maximise value signalled the intended plan. Solutions and Manheim,” he ex- for the entire automotive industry “The acquisition of Dealer Solu- plains. “This will more closely align especially vehicle sellers, buyers, deal- tions earlier this year certainly our capabilities in Australia with Cox ers, manufacturers and fleet, leasing, signalled our intent to replicate the Automotive’s comprehensive range finance, insurance and rental com- breadth of products, services and of products and services, available to panies,” Schwartz explains. “We can solutions they already provide on the wholesale and retail sectors of continue to evolve the client experi- a global scale, within Australia and the automotive market.” ence with a wide variety of solutions New Zealand,” Jones says. to meet the exploding shift in mobile “Today is a watershed moment Each brand retaining its own identity usage, online buying, consumer access for the automotive industry, as we and focus. and customer expectations.” announce our plans to strategically Sandy Schwartz, president of Cox Au- Lauren Williams, chief executive of combine CarsGuide with Dealer tomotive, called the new venture exciting. CarsGuide, says the structure will ena- ble the wholesale and retail sides of the INSIDE trade to work more closely together. Dealer Profile: Max Kirwan Mazda 7 “As part of Cox Automotive Australia, Search Optics opens doors to digital leads & sales 8 we expect to be able to further facilitate Tipping point for mass EV uptake is here 23 the links between the wholesale and re- Vehicle sales climb in July 25 23 25 tail markets so our customers can take Continued on page 3
FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: 2 | AUTOTALK.COM.AU | AUGUST 2016
NEWSTALK Carsales profit up on positive global outlook C arsales.com has reported a net S. Korean and S. American markets able lead model profit after tax of $109 million, perform solidly from July 2016 up 6%, and a total operating carsales.com also notes that in- should be a good Greg Roebuck CEO of carsales.com revenue of $344 million, up 10% com- ternational market growth has been contributor to pared to financial year (FY) 2015. The positive, with its Brazilian and South growth going forward. growth comes off the back of strong Korean investments delivering strong “Our acquisition of a controlling growth in its global markets. local currency revenue growth, along shareholding in Chileautos (www.chile- carsales.com chief executive and with the acquisition of 83% of Chileau- autos.cl), the top automotive classifieds managing director Greg Roebuck says tos in Chile and 65% of SoloAutos. website in Chile, is another milestone carsales’ strategy is delivering growth SK Encar delivered a 21% underly- in our international growth strategy. in FY16, with revenue up 10% and ing revenue growth year on year. This The Chileautos team has built a market EBITDA up 10%. growth was across all categories, in- leading and profitable business and we “We are building a dynamic global cluding dealer, private and display, with anticipate deploying carsales’ expertise, business; the economies of scale monthly dealer leads trebling. experience and Spanish language tech- that come with this, along with our “Integration of vehicle inspection nology into Chileautos and SoloAutos, world leading technology, are help- services via our Redbook Inspect our Mexican business, to rapidly grow ing us evolve our business. Dealers business and our (soon to be re- our Latin American businesses. and consumers have the same high leased) payment service via Promise- “Assuming no further deterioration expectations in all of our markets,” Pay are great examples of how we’re in market conditions, we anticipate the he says. making the buying, selling and pur- trialling of the lead model in Brazil to be carsales’ operational and strate- chasing of cars easier and safer. Along a good growth contributor to local cur- gic highlights during FY16 include with instant offer, products such as rency revenue and earnings over the full its domestic business continuing to our new car showroom (released in year. Korea is expected to see continued perform well with dealer revenue up June) will all contribute to growth in solid local currency revenue and earn- 10% year on year, while private seller the future,” Roebuck adds. ings growth. We expect ongoing integra- revenue performance is up 19% year “Investment in Brazil delivered solid tion of core carsales IP and technology on year. revenue growth with Webmotors’ into our Chilean and Mexican businesses Additionally, display revenue has underlying revenue up by 13% year on to provide a solid uplift in revenue and also seen growth, up 9% year on year. Operational improvements have earnings in the coming year.” year, and finance and related services delivered over 70% growth in lead vol- A more detailed trading update will showed strong growth with gross umes year on year and key growth in be provided at the October annual profit up 29% year on year. finance leads and the trial of a charge- general meeting. CARSGUIDE, DEALER SOLUTIONS AND MANHEIM TO FALL UNDER COX BANNER Continued from page 1 marketplace becomes ever more full advantage of the synergies offered influentia.” Williams says. by the new brand suite. The move will “Major changes within the auto- especially allow us to offer our dealer motive landscape are creating vast customers an even greater range of new opportunities and formidable channels in which to sell and buy their barriers to success that until a few vehicles.” years ago didn’t even exist. Cox “The addition of the CarsGuide Automotive Australia will exist to brand will fit perfectly within Cox empower each of our customers to Automotive Australia’s evolving family thrive in a rapidly changing auto- Campbell Jones CEO of Manheim of brands, particularly as the digital motive marketplace.” AUTOTALK.COM.AU AUGUST 2016 | 3
NEWSTALK Zagorski takes reigns of Ateco in Australia and NZ Importer and distributor Ateco Automotive has a new boss who has revealed that commercial vehicles are a key part of the business model going forward, while also noting that electric vehicles for the masses is another area that interests him. Z agorski was ap- OEMs gives us an While he acknowledges that com- pointed man- advantage in the sense mercial vehicles are not a sexy part aging director that we can react to of the business, he does point out of the Australasian market trends much that Ateco has had a lot of success Ateco Group in July. quicker than the larger with them. “It can be a very profitable Zagorski joined Ateco car brands.” business if you do your homework in 2010 to set up and One of his ob- and give the commercial buyers a run the Ateco subsid- jectives is to con- good value proposition. iary Branded Financial tinue leveraging that. “We were successful with Great Wall, Roger Zagorski Services, which is Longer term, the aim we brought in a ute and took it from operational in Austra- is to continue looking zero to circa 20,000 units - now there lia and New Zealand. for new opportunities whether as a are around 40,000 in the marketplace. The company proved a major niche brand or a Chinese product. “Also cars are being produced success for Ateco under Zagorski’s cheaper these days so the challenge leadership, with a portfolio valued Commercial and electric vehicles a is to find the best value proposition, in excess of $150 million and more key focus whether it’s commercial or passen- than 5000 customers across Aus- “The Levante will give us access to ger. LDV is definitely one brand that tralia and New Zealand. a broader prestige market. But then we would like to see go from a once He entered the car industry in 1996 at the other end of the spectrum niche brand into the volume end of as part of the startup team for Mer- a niche brand like LDV, which we the commercial vehicle market.” cedes-Benz Finance Australia. In 2004, brought in 12 months ago, is starting When asked where the biggest he moved to New Zealand to assume to hit its straps,” says Zagorski. “We challenges and opportunities are the role of managing director of Daim- have some new models coming into for the brand in Australia and New lerChrysler Financial Services and in the range which will give us access Zealand, Zagorski points out that 2007 he took on the responsibility for to broader parts of the commercial commercial vehicles and electric all aspects of the German company’s vehicle segment.” vehicles for working mums and dads New Zealand operation as the man- Continued on page 5 aging director and executive general manager of Mercedes-Benz New Zealand. AutoTalk spoke to Zagorski who says he is looking forward to seeing the company give the LDV commercial ve- hicle brand a bigger presence, as well as overseeing the launch of a couple of new Alfa Romeo models, including a SUV in New Zealand next year and the Maserati Levante SUV in Australia later this year. “The company is relatively small in terms of numbers, but we have very skilled people at the company who get the job done. The knowledge bank at the company is very strong as is the dealer relationship and the importance it plays in its success,” he says. “Being a smaller more nimble com- LDV G10 Van pany compared to some of the larger 4 | AUTOTALK.COM.AU | AUGUST 2016
NEWSTALK Continued from page 4 company is close to announcing a expanding ASV into Asia and South are two big areas that he wants to new appointment to its dealer network Africa. Again it’s a new business for us see developed. development team. and we are learning a lot of lessons “Tesla have been very successful at “We will be looking at making more as we go, but overall the reception marketing their product, but no one dealer appointments as we grow the from dealers and customers has been has been able to crack the volume existing brands, but the important thing great. There is also the possibility of end of the market when it comes to entertaining other makes and other electric vehicles. As an opportunity it is brands altogether,” Zagorski notes. massive so the challenge is to find the The re-engineered RAM models right proposition,” he told AutoTalk. have full volume Australian Design “The prestige end for EVs is double Rule compliance, with ASV the only because there is still a premium that importer of RAM Trucks covered by customers are prepared to pay for that approval. ASV dealers currently Teslas because they see them as offer the RAM 2500 and RAM 3500, somewhat of an exotic vehicle. But to both in top-spec Laramie dual-cab Ram 2500 bring the production cost to a level form. The RAM 2500 Laramie is priced where it’s a value proposition for the to recognise is a balanced approach; we at $139,500 plus on road costs, while volume end of the market, and the certainly don’t see a strategy where more the price for the 3500 is $146,500 notion of mum and dads buying EVs dealers means more sales,” he says. plus on road costs. and using them on a daily basis, is a Zagorski points out that there will “We also have a very strong dealer challenge that we would love to get be expansions in the dealer network network in New Zealand. The dynamic our heads around.” for LDV and American Special Vehi- in the Kiwi market in terms of dealer While Zagorski notes that Tesla will be cles (ASV) Ram dealers. The ASV new ownership concentration is slightly delivering a volume end model in 2017 at addition with the Ram trucks will higher, so we are happy to have a around US$30,000, he notes that China ramp up to 50-100 units per month robust and highly profitable multi- is powering ahead with EV technology in Australia. franchise dealer that represent us very and notes, “there are some manufac- ASV is a joint venture between well,” Zagorski adds. turers there that are highly focused on Ateco Automotive and Walkinshaw “In New Zealand, the Chrysler deal- battery power and EV technology, so I Automotive Group. ASV imports RAM erships have been performing very well think that part of the EV for the masses Trucks models in a left-hand drive despite the current trends in Australia. solution is going to come from China”. format direct from the factory, and “We are also looking forward to the the vehicles are then converted by arrival of the Alfa Romeo new mod- Aussie and NZ dealer network Walkinshaw’s expert technicians on a els in New Zealand, with the Giullia development production line in Clayton, Melbourne. and an SUV which comes out in 2017, Zagorski notes that while adding “Once the production processes which will be very good for business more dealerships is not a priority, the are bedded down we will look at in New Zealand,” he notes. Maserati Levante AUTOTALK.COM.AU AUGUST 2016 | 5
NEWSTALK AutoTalk Magazine and autotalk.com.au are published Imminent imports decision intensifies by Auto Media Group. Phone: 1800 125 620 ABN: 37 51360 734 JOURNALIST Max Pichon +61 403 932 864 lobbying on both sides T max@automediagroup.com.au he Australian Imported “We believe the Aussie “This reform is in line Motor Vehicle Industry consumer needs a better go, with improving com- MANAGING EDITOR Assn. says it is stepping and more choice and more petition and consumer Richard Edwards up its government lobbying affordable cars. They should choice,” says AAAA execu- +64 21 556 655 efforts and meeting with a tive director, Stuart Charity. be able to engage the car richard@automediagroup.com.au newly elected cabinet, as market outside the current “We recognise the logic of it seeks to revamp its talks restrictive dealership ar- minister for major projects, PUBLISHER around parallel imports. rangements,” says Sandher. Paul Fletcher, in initially limit- Vern Whitehead Meanwhile, other key Sandher also notes that ing personal imports to right- +64 21 831 153 groups – the Australian AIMVIA’s membership drive hand-driving nations of Japan vern@automediagroup.com.au Automotive Dealer Associa- has been better than ex- and the UK. The government tion (AADA) and the Federal pected so far for 2016. “I can has recognised these markets Chamber of Automotive say that we have had a large as having similar safety stand- SALES MANAGER Industries (FCAI) – have also number of members jump on ards to Australia.” Dale Stevenson ramped up talks with key board these past six months.” Charity also believes the dale@automediagroup.com.au political groups, with the aim AIMVIA says it remains reforms will allow thousands of having the policy axed. confident that the legisla- of Australian vehicle en- The Labor Party and tion will go through de- thusiasts to import unique OPERATIONS MANAGER senator Nick Xenophon spite Australian peak dealer vehicles into the Australian have both expressed sym- group, the AADA, actively market. “This will generate Deborah Baxter pathy with the AADA and lobbying Coalition MPs and new avenues of business for deborah@automediagroup.co.nz FCAI’s concerns, and there senators during the elec- the Australian auto aftermar- are rumours the policy tion campaign to get them ket, as consumers service Auto Media Group Limited makes every endeavour to ensure could face defeat in the to withdraw support for car and customise their new information contained in this Senate even if it is endorsed imports policy, as it “would imports,” adds Charity. publication is accurate, however by the Coalition. cost jobs and investment”. we are not liable for any losses Australian Imported The policy would allow AADA, FCAI: ‘Parallel or issues resulting from its use. Motor Vehicle Importers As- people to buy cars built in imports rule will hit jobs sociation (AIMVIA) president right-hand-drive markets, like and growth for dealers’ Jack Sandher told AutoTalk: the UK and Japan, less than During the Australian “We will be seeking to brief a year old and with less than election, the Australian Au- government and the relevant 500km on the odometer. tomotive Dealer Association departments on the impact The Australian Automo- (AADA) and the FCAI joined of the Motor Vehicles Stand- tive Aftermarket Associa- forces to fight the changes, ards Act (MVSA) changes on tion (AAAA) has backed the mobilising their network of our sector, and encourage decision to allow individuals several thousand dealer- the Turnbull government to or businesses to import new ships across the country. embrace further reform of vehicles themselves. Continued on page 12 the MVSA sector.” autotalk.co.nz Among the key priorities dieseltalk.co.nz going forward is to con- tinue with existing reforms autotalk.com.au and take them further, evtalk.co.nz and encourage govern- carandsuv.co.nz CAR & SUV ment to accept and apply identicar.co.nz Productivity Commission and Harper Review report recommendations. 6 | AUTOTALK.COM.AU | AUGUST 2016
PEOPLETALK Dealer profile: Max Kirwan Mazda Max Kirwan Mazda, located in Preston, Melbourne, has been operating since 1946. The dealership has 70 staff spread over an area of 8000sqm, with an additional holding yard where 400 new cars are stored. 2 015 proved tomer and not you, those sites as they have two 3. Can you describe your to be a big so it’s their customer sites, two service depart- day-to-day management year for the and you are just ments and double the staff, style and how it helps dealership as not delivering cars. whereas we comprise one achieve sales targets as only was it once We find that by single site. well as increased staff again Victoria’s not doing any fleet The biggest dealer in US, productivity and enhanced bestselling dealer business we get Wayne Mazda, sold around customer experience? for the year, after Max Kirwan more repeat cus- 2400 new Mazdas in 2015 We have a very strong Dealer Principal recording a new tomers, and they compared to us at 3165. management team plan- state and national also refer friends Australia is also classified as ning culture. We run three single site sale record of and family to us. We have a best practice country, ac- business plans concur- 3165 sales, but it also cre- people coming into the companied by the most sig- rently, namely a 12-month ated a new record of used dealership who have been nificant market share and the business plan, a three-year vehicle sales. This saw the buying cars from us for six best customer satisfaction strategic plan, and a five- dealership achieve almost or seven generations. ratings of any other country. Continued on page 16 4000 vehicle sales in total The other issue is that if for the year. you deal with fleet com- panies, they might have a 1. What are your new and customer that lives quite VEHICLE SHIPPING used car sales for the first far away so you’ll never see half of 2016? them come into your deal- For July year to date we ership. Dealing with your sold 1958 new units and 351 local customers in your used cars. Our objective for prime market area means 2016’s calendar year is 3500 they return to the service new car sales - for which we department and you have are on track – and 700 used regular contact with them. car sales. We have a new This means you have an facelift model Mazda3, which opportunity to support has just gone on sale, so July them not just with car sales stocks of Mazda3 were quite depleted, which reduced our but also with car servicing, which leads to relationship JAPAN TO AUSTRALIA sales result for the month. strengthening and simul- FASTEST IN THE BUSINESS taneous building of the 2. What does your service department. New port call to Fremantle dealership do differently Globally, we are ranked Direct service to Brisbane, Sydney and Melbourne to other dealers that top 10 for Mazda sales, Four vessel sailings per month makes it such a successful along with another two dealership in terms of sales Aussie dealers in Australia Agent bookings: GRAEME JENKINS // PHONE: +61 2 9700 0100 and customer satisfaction? which are also in the top We don’t do any fleet 10 global sales dealers. BEN SIMPSON // PHONE: + 61 2 8103 4075 ben.simpson@dolphinshipping.com.au // dolphinshipping.com.au business. We are of the view One is West End Mazda that the dealership needs to in Sydney with two sites, build relationships with cus- and the other is Grand tomers itself. If you deal with Prix Mazda in Queensland, a fleet company, it is building also with two sites. But the the relationship with the cus- overall volume is higher at AUTOTALK.COM.AU AUGUST 2016 | 7
NEWSTALK Search Optics arrives to open doors to digital leads and sales S earch Optics, a from Manchester Busi- “Australia is a key growth op- global digital mar- ness School. portunity for our rapidly expanding keting provider During a career that global brand,” says Wright. “Our with expertise in the au- spans more than 16 international focus, combined with tomotive industry, has years, he has created local talent, ensures we can deliver appointed Tom Wright and delivered digital highly tailored solutions to clients in as managing director of transformation strate- each of our key markets. Search Optics Australia gies in senior leader- “From my early observations in Aus- and APAC (Asia Pacific), ship roles throughout tralia, as seen in other markets around Thomas Wright as part of its global EMEA (Europe, Middle the world, OEMs, dealer groups and expansion strategy. East and Africa) and owner/operator dealerships can imple- The appointment of Wright aligns APAC, including Auto Trader, News ment digital strategies that are far more with the company’s growth strategy and International, Trinity Mirror, Thought- effective. For example, a mobile first strong focus on the automotive industry. works and Sopra Steria. approach will generate better leads and He will work closely with Austral- With sales, consulting, business drive more sales,” he notes. ian-based OEMs, local dealer groups development and marketing experi- AutoTalk spoke to Wright about his and independent dealers to deliver ence, Wright has provided solutions plans for Australia and he explains: digital marketing strategies and prod- to key car brands such as; Audi, BMW, “In the short term we aim to establish ucts that will help generate higher Ford, Jaguar, Land Rover, Mercedes, the business and gain a foothold into quality leads and improve their sales. Nissan, Rolls Royce and Volkswagen. the Australian automotive market. We Wright will add value to the company He also has a deep understanding of would like to gain some influential as a result of his extensive knowledge in the car dealership network, having sold clients, which we are already in the digital advertising and digital technol- directly and indirectly to it for more process of talking to, and also aim to ogy platforms. He holds a Global MBA than a decade. Continued on page 9 8 | AUTOTALK.COM.AU | AUGUST 2016
NEWSTALK Continued from page 8 Dealers can’t change what is coming “These days OEMs are actively have a good portfolio of case refer- According to Wright, the one key looking to engage their customers ences by the end of the year. difference in Australia is that a lot of in the digital space. It is at the point “Long term, we want to be working dealer groups own multiple brands. where OEMs are trying to engage with quite a few Australian-based OEMs “You have many people compet- with prospective buyers as much as in two to three years’ time by helping ing, but brand guidelines are the same possible before they even visit the them with their digital transformation. around the globe. The OEMs have dealership. A huge 78-80% of people Five years down the road our aim is to started to trigger a lot of the stand- in Australia are using search engines build Australia up to a platform where it ardisation, which hasn’t really af- to look for a car on their mobile de- becomes the heart of the APAC region fected Australia before. It is a changing vice, he says. in terms of growth.” market that is inevitable for all dealer “The current generation’s percep- According to Wright, the Australian groups,” he says. tions of car purchasing has radi- digital marketplace for dealers is very “At the end of the day it comes down cally changed so now it’s not about fragmented. “You have a lot of dealers to how we can help dealers stand out whether you should tailor your digital and OEMs that are carrying out cutting and be different within the guidelines presence to get the mzzzillennials on edge work in technology development that are being set by the OEMs.” board but rather about how quickly and advertising avenues that other Search Optics’ business model you can tailor that digital presence areas in the globe have not mastered, works across all dealers from OEMs to and capture their attention.” but in other areas Australia is a couple local dealerships. With more than 1300 Google- of years behind the rest,” he says. One of the company’s standouts is certifications - the most in the “If you look at programmatic ad- that it enables group sites and dealer industry - Search Optics won the vertising, there are certain OEMs and sites to have their inventory listed Google Premier SMB Partner Mobile dealers that are doing a great job, but with the site, effectively enabling Champion Award in North America in then within the same marketplace dealers to have their own search 2015, proving its extensive expertise there are people who have static facility. “We allow dealers to have full and capability for providing tangible websites and are still spending money search and availability of their own results through practical tactics that in the traditional areas of print and stock on their site,” Wright notes. bring in fresh sales leads. radio and have not yet mastered the “The second CONVERT MORE SHOPPERS basics. So it becomes very difficult to key advan- give a one size fits all solution to such tage is that we a fragmented market. “Australia is currently the fastest have a fully responsive site INTO BUYERS adopter of mobile technology going that enables forward as a whole, not only automo- dealers to have ‘The brief we gave Andrew was to turn our team tive. But the problem is that rather a consistent from “good to great” and he has delivered. The than fixing the fundamentals, people user experience two months following the training saw the team are focusing on providing some of the across mobile, break several records, there is no doubt that new, shiny items at the top rather than tablet, desk- Andrew’s processes and system had a large part focusing on some of the core areas. top or browser “What we want to focus on is fixing within a smart to play in this.’ issues at the platform level, the stra- TV. It removes We will continue to use Andrew’s services to tegic level that is, to try to see what the technol- keep our sales team on track and ensure they we can sort out at the basic level. At ogy cost and have the tools to maximise every opportunity. the moment a lot of money is being enables them Full testimonial at: http://www.andrewmearns.com. wasted by OEMs because they are not to have a flex- getting their core concepts right.” ible site. We au/references.html Wright says that as a result of the also enable Jeremy Spicer experiences he has had with OEMs and direct analysis Dealer Principal overseas dealers, he feels confident of a dealer’s Manukau Nissan that he has the potential to push those website, cre- success stories into the Aussie market. ate pages and “I am hoping to share the wins and adapt user successes we have had in the past experiences and bring in that global outlook from through the site markets such as the US, India, China, so as to focus etc. We think we can help dealers and on key targets T: 0488 800 210 & 1300 480 661 car makers by fast tracking those digi- and produce E: andrew@andrewmearns.com.au tal processes as well as extending our the best return www.andrewmearns.com relationships with OEMs.” on investment. AUTOTALK.COM.AU AUGUST 2016 | 9
NEWSTALK Navigating the aftersales revenue stream maze: Part 2 Service and retail sales environments Make it achievable I ’ve chosen to bundle these two So you’ve got a great prize and the together as the challenges, engage- By Andrew Selim incentive structure is clear but the ment mechanisms and environ- FieldForce target is out of reach or the chances of mental characteristics are similar. andrew@randem.com.au winning are miniscule. This is a no no. Again, for context: They want a result as much as you Service environments – this is the do. So try incentives with language cross-selling (‘We noticed you require such as ‘reach X and you get Y’ new tyres, we can fit them for you rather than returning to the dealership. rather than ‘reach X and you have a today’) and upselling (‘Would you like In both examples, customers are chance to win Y’. to upgrade to premium oil?’) by service spending money, just not where we advisors during time of vehicle service. want them to spend it. In a market Communication & engagement: Retail sales – this is the selling of where vehicle sales margins are pain- So you’ve ticked off all the above accessories by vehicle sales staff in fully thin, these lost revenue opportu- – fantastic! But nobody knows about retail showrooms. nities must be curbed. it, or they have lost interest along the The challenges are broadly simi- So how do we win here? We need way. It’s all about communication, lar, that is gaining mindshare of the to motivate and change the behav- and as simple as it sounds, many still key people to influence these sales. iour of our prime influencers at the fail to get it right. Where it can come Service advisors are generally focused point of sale. unstuck is through over complication on getting cars in and out each day, Now, I won’t go into the basics - or trying to be too creative – time- which sees very busy mornings and things like online and offline marketing lines go out the window. afternoons with in between time usually collateral, sales and product training… So devise a clear communication spent communicating with owners on I say they are basic because if they and content roadmap and stick to it! unexpected issues etc. Indeed, the only are not being done the question is time they can sell is face to face when begged as to what is being done? Execution platforms: there can be a long line of impatient What works time and time again Execution needs to be easy, cost- owners wishing to drop off or pick up. and far and wide to influence behav- efficient and reusable. Gone are the It’s a highly stressful environment. ioural change - incentives. days of having to develop your own For the latter, their focus is to sell digital platform to facilitate and man- cars. It’s about getting the signature Ensuring incentive success age your incentives. Your time and and not complicating or distract- So you’ve decided to do an incen- money is better spent elsewhere, so ing the process of achieving it. Don’t tive – great! Here is where many fail: seek out third party providers like get me wrong, I know I’m painting a FieldForce who can plug and play broad brush, but it is characteristic, The Prize exactly what you need. especially in high volume brands/ Have you ever seen a kid excited to models over prestige/niche ones. So eat vegetables? Give them candy how- Summary what generally happens when these ever…you know where I am going here. For parts-revenue focused managers sales opportunities are missed? You must ensure that what you are of- at dealer and OEM level, the oppor- Let’s use the examples above - let’s fering as a reward will get them excited! tunities are plenty. Several strategies say in the case we don’t ask to re- must be evaluated and a clear strat- place the worn tyres? The owner will Keep it simple egy devised for each channel through most likely go to an independent tyre Sell X of this and Y of that, but which all can capitalise. The concepts retailer which may also offer servicing. only if the sun is shining and you are presented above are by no means revo- So not only have we lost the tyre sale, standing on one leg. I’m being face- lutionary nor my own creation, they we may lose the customer entirely. tious yes, but there is some truth in it. have however proven to be powerful In the case of accessories, custom- Some incentives are so riddled with strategies in boosting parts revenue ers more often than not shop after- terms and conditions they land in the when employed and executed well. market in physical stores and online ‘too hard’ basket. Happy selling! 10 | AUTOTALK.COM.AU | AUGUST 2016
NEWSTALK Customers at the heart of Hino sales and service focus Hino conducted a survey to find out what is important to its customers. Consistency in pricing when visiting the dealership or service centre came out on top. BY MAX PICHON 500 and 700 series medium and heavy duty trucks in July. A s a result, Hino has introduced “The truck market for the medium- fixed price minor servicing and duty truck is our largest, so we expect slashed the price of service and to see the same percentage but more in Hino service maintenance parts. On average, ser- terms of volume coming in,” says Bleasel. vice and maintenance parts have been “With the light-duty truck we have reduced by 24%. a leading product in terms of technol- us to look at the training programmes Fixed price minor servicing extends ogy and specification, and we think we we provide to our dealers.” to all Euro 5-compliant Hino 300, 500 will continue to see good sales in that Bleasel explains that customer and 700 series vehicles. section. In general, I have a positive requirements are always changing, Pricing for minor servicing now be- outlook on the sales market. Things contingent also on whether they are a gins at $559 for the 300 series (N04C), will continue on the same path as they fleet or retail customer. $669 for the 500 series (J07E) and $869 have been so we won’t see any huge “In order to get more insight into our for the 700 series (E13 – FS, SS, SH). boom or bust environment. customers we have been building this Fixed priced minor servicing includes “We are getting repeat customers customer care team over the last year. vehicle inspection and diagnostic checks, and some customers who come in for This has enabled us to monitor many engine oil and filter replacement, fuel a brake repair, for example, but take up things such as incoming calls, the num- filter replacement, and vehicle greas- the offer while their vehicle is being ser- ber of dropouts, and any complaints ing and tyre rotation by a professional viced. We recently opened a customer etc. We also survey the customers from factory-trained Hino service technician. care centre in-house where seven staff a sales and service perspective,” Bleasel Hino Australia head of product of- members send customers surveys to told AutoTalk. fering Greg Bleasel spoke to AutoTalk get feedback on their experiences, as Hino is also conducting some mar- on Hino’s strategy to get the best from well as feedback on the servicing of ket representation studies to determine its dealers for enhanced customer their vehicles. That feedback is helping Continued on page 12 satisfaction. “Customers are looking for the best price and consistency across our dealer network,” he says. “As they may have multiple vehicles and may take different vehicles to different dealers for servicing, they don’t want unexpected surprises. Hino Australia is therefore working closely with its authorised dealers to achieve this outcome. “From the dealer’s perspective it means better retention because the pricing is more competitive to that which non-Hino dealers are offer- ing. So, when a customer makes a choice, hopefully they will see the value of taking it to a Hino dealer. As a result we have seen a 10% increase in the number of vehicles that have come back for servicing.” Hino offered the cheaper pric- ing on the light duty 300 series truck 12 months ago and on the AUTOTALK.COM.AU AUGUST 2016 | 11
NEWSTALK CUSTOMERS AT THE HEART OF HINO SALES AND SERVICE FOCUS Continued from page 11 Hino modules transport, its weight and bulk, and how where more Hino dealers will be need- improve customer far and how often it will be transported. ed in five, 10, 15 and 20 years’ time. The satisfaction at dealer “Our training process therefore fo- modelling will focus on major transport Hino Australia cuses not just on our products but also routes, population growth areas, freight has also strength- on building the needs analysis skills of terminal locations and business growth ened its customer our sales staff, which enables them to corridors to decide where Hino may focus by creating find the right transport solutions that need more full service facilities. a comprehensive are fit for purpose and best suited to “We are currently doing this mod- Greg Bleasel sales training pro- each individual business’ unique needs. Hino elling for Adelaide, Brisbane, Sydney gramme aimed at and some other areas. We are look- enabling Hino deal- ing at where we need new additional ership sales staff to provide the best dealerships - but developing a dealer possible customer experience. network is not something that can be The five-stage programme is done overnight as it usually takes two delivered via a combination of online to three years,” says Bleasel. learning modules and face-to-face In terms of truck market challenges, training conducted at Hino Australia’s Bleasel points out that the whole head office in Sydney. Hino 300 hybrid truck lifecycle cost of fleets is always a key Hino Australia chairman and chief challenge. “We are always trying to executive Steve Lotter says the training make the whole lifecycle cost more programme is aimed directly at provid- “Our dealerships are right behind effective for the customer by reduc- ing the best outcome for its customers. the programme and the feedback from ing customer downtime and improving “It’s all about ensuring our dealership our sales staff has been very positive.” proximity through positioning our parts sales managers and consultants have The sales training programme forms and service agents and dealers to areas the knowledge and skills needed to en- part of a broader Hino academy cur- where our customers live and work. sure they are not just selling a truck but rently being developed collaboratively “The challenge this year in particular are instead providing a total transport by the sales, parts and service divisions has been the exchange rate with the solution to each customer,” Lotter says. of the company. strong Japanese yen. It has put cost “The sales process for trucks is quite The five-stage sales programme sees pressures on us which we have not different to passenger vehicles: the staff begin at the induction level before passed on to customers to maintain sales consultant needs to take into progressing to consultant, professional, cost stability.” account what the customer needs to expert, and then master level. Imminent imports decision intensifies lobbying on both sides Continued from page 6 impact on “jobs and growth”. dependent on vehicle sales, includ- “The two bodies recognised “We think our letter brought to ing our significant investment in this issue as poorly researched government attention the negative training and facilities,” the letter says. – and underpinned by no eco- consumer consequences likely to The letter also makes clear that nomic modelling – on the impact flow from this plan, and also ex- the success of the dealership allows it would have on Australian dealers pressed our concerns about future the business to make an investment … and not evidentially supported risks,” he says. in local communities as a “significant to deliver on its claimed benefit to The letter, distributed to dealers economic and social contributor to consumers,” FCAI chief executive to lobby MPs and senators, says the region”. Tony Weber told The Australian. the dealer network has “significant “If the Australian government al- AADA chief executive David Black- concerns” about the proposed lows these cars to enter the coun- hall says the campaign got traction policy changes and urges the gov- try through informal channels. we in regional areas, where the policy ernment reconsider. expect much of the burden will fall would have a particularly negative “The viability of our business is upon dealers.” 12 | AUTOTALK.COM.AU | AUGUST 2016
DIARYTALK 300 repairs per month, which Melbourne-based The THE represents a 40% increase In Motion Group has been Max Pichon DIARY AutoTalk’s seni or over the previous facility. appointed by Alpina as journalist Max Martin Roller, managing the national importer and back at Pichon looks director of LMM Holdings distributor for BMW Alpina ries in the major sto including Brisbane BMW, Bris- cars, which will initially be th on the past mon our Austrailian bane MINI Garage, Westside available through the group’s ite AutoTalk webs BMW, Ferrari Brisbane and Doncaster and Bundoora to ta lk .co m.au – au the Brisbane BMW Bodyshop locations, trading as Alpina says: “The design, develop- Automobiles – Victoria. ment and implementation The In Motion Group plans of this project has been 12 to make Alpina cars available 1 July 5 July months in the making.” through further dealerships in selected major metropolitan New boss for areas. These will be an- Mitsubishi to recall ‘Cost of Euro Crichton’s Ateco nounced later in 2016. almost every model 6 standards Ateco boss Ric Hull has retired Mitsubishi Motors Australia will be recalling almost every to cost $495M’ The Federal Chamber of as managing director of Neville Crichton’s Australasian Ateco 8 July one of its models sold in the Automotive Industries (FCAI) Group – with his replacement past 10 years after a number has reaffirmed its support appointed from within. New Honda NSX on of key models were recalled for a mandated CO2 target Roger Zagorski, who cur- sale at dealers late due to safety concerns. rently runs Ateco’s finance op- The models include some that is relevant to Australia. eration, is the new appointee. 2016 However, the FCAI notes that Honda Australia will sell the of the car maker’s most the rise from Euro 5 to Euro 6 Hull will continue as a direc- new Honda NSX at five deal- popular models, including standards would incur a rise tor of the automotive importer. erships around the country, the Triton, Lancer, Pajero, in new light vehicle costs of with a pre-production model Colt and the Lancer Evolu- tion and Ralliart. almost half a billion dollars. The Australian Labor Party 7 July arriving in Australia ahead of a national roadshow. The huge recall – close in April this year revealed The pre-production Hon- to 500,000 vehicles – was plans to introduce mandatory Looking forward to da NSX will begin a national released earlier this week in light vehicle standards, which looking back tour of the five dealerships nine separate alerts released it says will save drivers $8500 Japan has become one of that have been nominated by the Australian Competition in fuel costs over the life of the first countries to al- to sell it. These are: Yarra and Consumer Commission. car but add $1500 to the low automakers to sell cars Honda; Scotts Honda; Aus- price of a new car in 2025. equipped with cameras in lieu tral Honda; Nordic Honda; 4 July Meanwhile, the current Liberal National Government of conventional mirrors. The technology isn’t and Burswood Honda. Honda Australia direc- says it is working on a detailed quite new; we’ve seen it on tor, Stephen Collins, says the Top safety rating plan to meet climate change numerous concept cars over NSX will be a halo car for the for Mazda’s targets. The outcomes of this the past few years, includ- brand, but it’s the Honda Civic review will input into a de- ing the Lamborghini Urus. In people mover Type R that will be the most tailed plan to reduce vehicle fact, Cadillac offers its CT6 budget-friendly Honda hot The new Mazda CX-9 has emissions, and help consum- flagship with a digital rear- shoe when it arrives. now been awarded the high- ers lower the costs of running view mirror that displays est ANCAP safety rating with an overall score of 35.87 their vehicles. obstacle-free footage of Subaru opens points out of 37, to give it a what’s behind the car at the dealership in maximum 5 stars. The seven-seat SUV 6 July simple push of a button. However, no one has been Essendon precinct Subaru has opened its sixth – which goes on sale in able to completely replace BMW’s new Brisbane door mirrors with cameras on dealership in Melbourne, Australia this week and New with the opening of Subaru Zealand in September – is Bodyshop bigger a production model because sole reliance on the technol- Essendon. The dealership is the first generation of CX-9 and better located in Essendon Fields’ to be awarded an ANCAP ogy is still illegal in most parts The Brisbane BMW Bodyshop, of the world. Auto Centro precinct at Wir- safety rating. Previous CX-9 having outgrown its original raway Road. models were unrated. “This is the first time site at Victoria Street, Wind- Alpina brand arrives Operated by Subaru sor, has moved to a new facil- Melbourne, the company we’ve subjected the CX-9 ity at Nudgee Road, Hendra. in Australia relocated its existing service to the ANCAP crash test BMW Australia confirmed the The new site houses 4500 centre facility to the new site process,” says ANCAP chief, introduction of the Alpina qm and has been designed to broaden its offering to James Goodwin. brand into the Australian to optimise the vast space include new and used sales, market through The In Mo- offered by the building. This service and parts. tion Group, trading as Alpina will enable it to handle 250 to Automobiles – Australia. Continued on page 14 AUTOTALK.COM.AU AUGUST 2016 | 13
DIARYTALK grants for 14,000 full-time land. As its name suggests, the 15 July Continued from page 13 On the opening of the jobs across South Australia. company provides financial new dealership, David Rodda, Motor Trade Association services under names of the dealer principal at Subaru Mel- of South Australia (MTA SA) brands handled by the dealers Fiji LTA appoints bourne says: “We’re excited chief, Paul Unerkov, believes with which it works. JEVIC to open a fresh and inviting the 2016/17 state budget will The Republic of Fiji’s Land space that makes the brand boost confidence in South 1800Approved is Transport Authority (LTA) has more accessible to those in Australia’s economy and finance broker of year appointed Japan Export Vehi- the Northwest of Melbourne. encourage jobs growth. The ongoing growth and high cle Inspection Centre (JEVIC) The Essendon Fields dealer- service standards of 1800Ap- for the mandatory inspection ship represents the latest in a wave of major investments in 12 July proved has been recognised by the industry and the public, of used vehicles from Japan. The inspection will en- Melbourne for Subaru.” with the company awarded compass the vehicle’s condi- Manheim commits ‘Asset Finance Broker of the tion as well as structural, VW Australia told to Sydney future Year’ at the 2016 Australian odometer, stolen vehicle and to come up with Manheim Auctions has broking awards in Sydney. biosecurity aspects. The Australian broking answers completed the purchase of awards are unique in focus- A pre-export appraisal Volkswagen has again been the land and buildings at 144 report from JEVIC will be Moorebank Ave, Moorebank, ing solely on the leading required for inspected ve- subjected to Federal Court in order to cater for increased brokers, brokerages and hicles from August 15 while orders to produce more business demand. aggregation groups, and is inspections will commence answers on the global diesel With a growing number recognised as the most pres- in Japan today. emissions scandal that has of vehicles, trucks, machin- tigious awards within the impacted around 100,000 industry. This achievement Australian motorists involved in the Maurice Blackburn ery and other assets being auctioned to increasingly represents a new pinnacle of success for the company, 19 July consumer class action. larger crowds every week, Further orders, to be made the company has moved all of its members, and its Navman Wireless and to secure its future at the founder, Rodney Michail. by Justice Foster following Asset Finance Broker of Teletrac announce the July 8 hearing in Sydney, Moorebank site. follow a pattern of behaviour Campbell Jones, chief ex- the Year award recognises the unified brand ecutive of Manheim says: “The broker and brokerage that is Navman Wireless is rebrand- from the company that was purchase of the 35,000sqm best servicing its clients’ asset ing under the name Teletrac recently labelled by the judge site at Moorebank reflects finance needs, while maintain- Navman. for treating Australia like a the success of our business ing the highest standards in This rebranding follows “backwater” in its approach and our commitment to our submission quality and cus- Navman Wireless’ merger with to resolving the issue. operations in Sydney.” tomer service, as well as every GPS fleet tracking software Justice Foster is due to area of the business process. company, Teletrac, creating issue the orders today, de- one of the world’s largest manding Volkswagen provide more detail on how “mode 1” 13 July 14 July telematics organisations. Under the Teletrac Nav- and “mode 2” emissions soft- Benucci appointed man brand, the combined ware controls worked, and the recall work to be undertaken. CEO of Branded 93% coverage for resources of Navman Wireless and Teletrac will continue to Financial Services ANCAP expand the company’s offer- 11 July Umberto Benucci has been appointed as chief executive Australasian New Car Assess- ment Programme testing now ings to a more geographically diverse market, including New covers 93% of the market – officer of Branded Financial Zealand, Australia, Mexico, Budget lifeline Services, the company that with the awarding of five-star the United Kingdom and the safety ratings to both the handed to SA auto provides retail and dealer fi- Suzuki Vitara and Kia Optima. United States. firms nancial services for the Ateco Both models previously The South Australia govern- ment will provide grants to group of companies in both Australia and New Zealand. ranked as top-selling unrated models in their class. 20 July small and medium enterprises Benucci’s move follows “We’ve awarded the for each new job created in the appointment of Roger maximum five-star ANCAP AP Eagers the next two years as a way to Zagorski, the previous CEO expecting record safety rating for the Suzuki invest in job creation initiatives of Branded Financial Servic- for South Australia and give es, to the role of managing Vitara, which is a real boost half yearly profit for consumers and Suzuki,” The share price of AP Eagers the automotive sector in SA a director of the Ateco group says ANCAP chief execu- has increased after the auto- much needed helping hand. of companies. tive officer James Goodwin. motive dealership company The 2016-17 South Aus- Branded Financial Ser- “The Vitara performed well released a positive half-year tralian budget, which was vices has a portfolio valued in in physical crash testing and update to the market. handed down by treasurer excess of $150 million, with includes reversing collision The update reveals that Tom Koutsantonis, estimates more than 5000 customers avoidance and a manual AP Eagers is expecting a the schemes will provide across Australia and New Zea- speed limiter as standard.” Continued on page 15 14 | AUTOTALK.COM.AU | AUGUST 2016
DIARYTALK Continued from page 14 Man charged text for over 15,000 auto a valuable addition to the record profit result for the half dealers worldwide. company’s presence in the year ended June 30 2016. It over fraudulent Using the mobile messaging Melbourne region. expects a 14% increase in net compliance of platform, dealers are able to The existing Marwen profit before tax, of approxi- imports add chat and text to their web- Drive dealership would be mately $67.8 million, com- A man has been charged sites, mobile sites, advertising re-branded Daimler Trucks pared to $59.5 million for the following an extensive in- listings, social media and more. Laverton, and relocated over corresponding period in 2015. vestigation into the alleged “There are many vendors the next 12 months to a new This record result comes fraudulent compliance of 73 who sell chat, but Contact facility to be developed on a after AP Eagers’ aggressive imported vehicles in Sydney. At Once! is the only auto- greenfield site on Boundary dealership acquisition strat- Detectives from the State motive mobile messaging Road by the group’s prop- egy. In June the company Crime Command’s Property platform that can create a erty partner Charter Hall. announced it had acquired Crime Squad established network of consistent con- the Tony Ireland Group, a Strike Force Chorley to in- nections among dealers, More Aussies Townsville-based car and vestigate the irregular com- manufacturers and online looking to buy a car trucking retail business selling advertising sites such as Holden, HSV, Land Rover, pliance of a large number of Autotrader and Cars.com,” in 2016 new and used vehicles from The number of Australians Jaguar and Isuzu trucks, and Japan to Australia between says Adam Flegge, Contact who intend to buy a new car Hyundai forklifts brands. 2010 and 2014. At Once! Australia sales within the next four years In August 2014, strike manager. “Wherever and has been steadily climbing 21 July force investigators executed whenever consumers are over the past six months, a search warrant at a motor shopping for vehicles, deal- with a total of 100,000 more dealership on Bridge Street, ers and manufacturers can car buyers now than at the Autosports Group Rydalmere, where they have immediate presence.” end of 2015. banks on European seized documents relating Near-term intention has car sales The increased demand from to vehicle compliance. 27 July also risen, adding 60,000 more Australians on the Australians buying European cars has underscored car 22 July Peugeot Australia lookout for a new car in the next 12 months compared dealership owner Autosports names new national with six months ago. Group’s pitch to fund manag- Diesel powered sales manager vehicles growing in ers this week, as the company ramps up plans for an initial popularity Peugeot Australia has ap- pointed Nigel Wright to the 28 July public offering (IPO). The number of diesel powered position of national sales man- Imminent Autosports Group met with vehicles registered in Australia ager, effective immediately. prospective institutional in- Joining Peugeot Australia imports decision has increased by more than vestors in Melbourne, Sydney double that of petrol powered in 2013, Wright previously intensifies lobbying and Auckland and then Hong vehicles in 2016, according to held the positions of regional on both sides Kong. Autosports is looking to new figures by the Australian manager for sales, national The Australian Imported raise anywhere betwen $100 Bureau of Statistics (ABS). corporate sales manager Motor Vehicle Industry Assn. million to $400 million. Diesel powered vehicles and, since January 2016, act- says it is stepping up its The car dealer has been increased by 1.2% to 20.9% ing national sales manager. government lobbying efforts working with financial adviser and remain the fastest grow- He was instrumental in es- and meeting with a newly Luminis Partners on the listing ing fuel type for all vehicles. tablishing Peugeot Australia’s elected cabinet, as it seeks plans and is targeting a stock- The annual snapshot of corporate programme in to revamp its talks around market debut later this year. all vehicles registered for 2014 and securing Wool- parallel imports. use on Australian roads worths Australia, Nutrimetics Meanwhile, other key Full range of Teslas shows that the total num- and Right2Drive as Peugeot’s groups – the Australian in development ber of vehicles fueled by founding fleet partners. Automotive Dealer Associa- Tesla founder Elon Musk has diesel increased by 293,217, tion (AADA) and the Federal today issues his second master in comparison to 114,337 AHG adds Daimler Chamber of Automotive plan for the company – an- petrol powered vehicles trucks dealer to Industries (FCAI) – have also nouncing plans to take on even added to the Motor Vehicle portfolio ramped up talks with key more automotive sectors. Register since 2015. Automotive Holdings Group political groups, with the aim While the company had (AHG), Australia’s largest vehi- of having the policy axed. started off focussing on niche parts of the automotive mar- 26 July cle dealer group, has acquired a Mercedes Benz commer- The Labor Party and sena- tor Nick Xenophon have both ket, it was time to become a cial dealership in Laverton, expressed sympathy with the broader brand – with vehicles Software connects Victoria from Mercedes Benz AADA and FCAI’s concerns, in more segments. mobile shoppers Australia Pacific. and there are rumours the That will include a com- AHG managing direc- policy could face defeat in the pact SUV, a ute/pickup truck, and dealers tor, Bronte Howson, says Senate, even if it is endorsed a large truck, and a city bus. Contact At Once! provides by the Coalition. the dealership represents online and mobile chat and AUTOTALK.COM.AU AUGUST 2016 | 15
You can also read