Maserati Australia rewards outstanding dealership staff - L-R: Leo Kao, Glen Sealey, James Staniforth, Adriano Giorgi
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THE VEHICLE DEALER’S NEWS SOURCE MAY 2020 .COM.AU Maserati Australia rewards outstanding dealership staff p16 L-R: Leo Kao, Glen Sealey, James Staniforth, Adriano Giorgi
EDITORTALK
H
ello there,
On the very first press conference
as newly installed Prime Minister,
Scott Morrison told the nation that “If you
have a go in this country you will get a
go. There is a fair go for those who have
a go.”
As reported by The Guardian, there was
some initial confusion at this, so the PM
issued a clarification saying: “Fairness
means a fair go for those who have a go.”
Robert Barry
But it appears that there is not a level
playing field for those having a go to get
a fair go, especially the franchised new The paper was written at the request
vehicle sales industry when it comes to of members of the VADA executive
assistance from both state and federal committee. It was created using data
governments. supplied from VADA members and
To give them credit, the automotive it is also relevant to farm machinery,
industry bodies such as the Motor Trade commercial vehicle and motorcycle
Association of Australia, the Australian dealers.
Automotive Dealers Association, the The paper was data heavy and it will
Victorian Automotive Chamber of leave the politicians in no doubt as to
Commerce and the Victorian Automotive the parlous financial position the new
Dealers Association have not been car industry finds itself in.
backward about telling the politicians that But there were a couple of points the
the assistance packages on offer are not paper didn’t cover that I would like to
fair and equitable to all members of the observe.
new vehicle sales industry. The new vehicle industry provides
Especially those dealerships who are much-needed mobility and employment
part of a group which have a turnover to everyday Australians, as well as large
of $1 billion or more - they are the ones amounts of philanthropic support of
who are missing out big time. communities and charities.
The common bone of contention the
parties all share is that turnover, no
matter how large, does not equate to “If you have a go in this
profitability, especially in the current country you will get a go.
trading environment. Particularly when
margins are practically non-existent in the
There is a fair go for those
sale of a new vehicle, and revenue and who have a go.”
margins from finance and insurance as
well as the service department are also
dwindling. The industry also strives to provide
There are more details about the paper safer and more environmentally friendly
which MTAA submitted to the Federal vehicles, including hybrids and electric
Government last month on page 8. It is vehicles, despite the lack of infrastructural
called “The case for exemptions from support from state and federal
threshold and staff criteria in Federal government.
Government COVID-19 relief packages for The new vehicle sales industry is
automotive dealer franchises.“ having a go at making a fair dinkum
It was submitted on behalf of the contribution to Australia and its people
Victorian Automobile Chamber of Mr Morrison, so how about you uphold
Commerce (VACC) and the Victorian your promise made on day one of this
Automotive Dealers Association (VADA). government and giving it a fair go too?
2 | AUTOTALK MAY 2020 | www.autotalk.com.au
NEWSTALK
STAFF RETENTION KEY TO
CONSECUTIVE DEALERSHIP
AWARDS
A
member of the Stillwell Motor
Group, Volvo Cars South Yarra
recently won the brand’s major
metropolitan dealership of the year award
for the second consecutive year, and
dealer principal Sue Alford says the team
is aiming for a three-peat.
“It’s exciting that we’ve achieved this
twice, and now the team at Volvo Cars
South Yarra are absolutely committed
to winning this award for a third time,”
Alford says.
“I’m really proud of my team because
they are true professionals.
“My number one focus is and always will because to be an award-winning
be the staff and our customer service; dealership, every single team member
because if you get that right then makes a contribution,” she says.
everything else flows,” she says. “More importantly a high staff retention
The Volvo Cars major metropolitan leads to high engagement because
dealership of the year awards are based people feel involved and they want to
on a points system. It scrutinises the contribute, which flows on to excellence
performance of the dealership’s operation and performance.
including: new vehicle sales, used vehicle “There’s no magic formula to this, but
sales, parts and service operation, I’m very lucky to have three great teams
business management, accessory sales, who work well together,” she says. Volvo Cars South Yarra
presentation, occupational health and Alford says the arrival of COVID-19 has
safety, and CRM. been a challenge for the businesses as
Alford has a busy role managing three some staff have been temporarily stood
sites for the Stillwell Motor Group: Volvo down and it’s been a very difficult time.
Cars South Yarra, Volvo Cars Doncaster “We are open for contactless sales and
(the brand's largest PMA in Australia) service and we have a limited number of
and Volvo Cars Camberwell. There are salespeople working online.
40 members of staff at Doncaster, 28 in “The service department is operating at
South Yarra and 12 in Camberwell. 80% capacity rather than 100% due to the
She says that at the end of March, Volvo new health and safety procedures we’ve
Cars South Yarra was sitting at number put in to keep our staff safe and allow for
one in the national major metropolitan the appropriate distancing while working
dealership rankings table and Volvo on vehicles. But we are still booked four
Cars Doncaster was right behind at to five days out which is encouraging.
number two. “At the end of March our sales of plug-in
One key aspect behind this success, hybrid Volvo models were up 37% year
according to Alford, are the dealership’s on year, and then the virus arrived and “But I think there are already some
long-serving staff members, both that’s slowed business down somewhat. positive signs in the industry, the Volvo
Volvo Cars South Yarra and Volvo Cars "The 100% electric Volvo XC-40 SUV factory is coming back online, and as
Doncaster have a retention rate of more was due here late 2020 but that’s business picks up again, we will gradually
than 92%. been delayed by COVID-19, so we are bring more staff members back as we
“Team retention is most important patiently waiting for an update on that. need them,” she says.
Continued on page 4
AUTOTALK MAY 2020 | www.autotalk.com.au | 3
Continued from page 3
Stillwell Motor Group began as one-man
Alford is passionate about the motor operation in 1949 when Bib Stillwell
vehicle industry - she began her opened an MG dealership. Stillwell was
career more than 30 years ago as the also an accomplished motor racing driver
receptionist in a Mazda dealership: “I and aviation enthusiast. He also sold
know what an important and demanding Jaguars and then purchased a Holden
role that can be, you really are the dealership.
director of first impressions.” In 1966 Stillwell switched franchises from
From the reception desk Alford moved Holden to Ford and the following year
into the accounts department working established Stillwell Aviation becoming
full time while gaining her accountancy the Australian distributor for Beechcraft
qualification at night school. She has and then later Lear Jet aircraft.
worked her way up the dealership In the late 1970s, the father of five moved
career ladder from financial controller to much of his family from Melbourne to
general manager to dealer principal. the US, where he became Gates Lear jet
Prior to running to running the Volvo Car Corporation President, before returning
dealerships, Alford has also worked in to Melbourne in the 1989 and adding
Volkswagen and Ford dealerships. Silverstone Jaguar in Melbourne and
“I was fortunate enough to work for the Honda and Toyota dealerships in Sydney.
late Bib Stilwell as his accountant and Today, Stillwell Motor Group employs
I’ve been very grateful for the support of more than 350 people across eight
Sue Alford the Stillwell family and the opportunity award-winning dealerships including
to work within the family-owned and BMW, Jaguar, Land Rover, Volvo and
managed company,” she says. Volkswagen.
4 | AUTOTALK MAY 2020 | www.autotalk.com.au
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AUTOTALK MAY 2020 | www.autotalk.com.au | 5
NEWSTALK
GUMTREE CARS SUPPORTING
DEALERS IN UNPRECEDENTED TIMES
AutoTalk Australia editor Robert Barry hosted a Q & A session with Gumtree Cars head of motors
Richard DiCello about the company’s wish to support dealers through the COVID-19 pandemic and
what steps it is taking to do so.
Q
: Let's start off with the recent out to our dealer partners, to not only
initiatives that you've put up for support them, but to help guide them
the dealers in Australia. Would through these unprecedented times.
you like to tell us what you did, and how And you do, you get mixed responses
successful it's been so far? definitely. We've got some dealers that
RD: As you know we're all facing are struggling more than others, some
unprecedented times, across not only the dealers that have put some strong
automotive industry, but across the world strategies in place to help them cope.
really, so at Gumtree Cars we decided But yeah, there's been a number of
to take some measures to support our dealers that have had to take some
dealers. measures to make sure they get through
And we took these measures based on these times. In particular, we know they've Richard Dicello
a number of reasons, but primarily our had to rationalise some of their staff with
goal was to support the dealers through trading conditions being challenged,
these unprecedented times, knowing they're running variable rosters.
full well that they're going through Of course, people are still needing to
significant challenges, as we all are. So get their cars serviced, so they've got
we took the opportunity to support them to make sure their service bays are fully
as much as we possibly could. stocked with the right staff. But also, be
The first thing we did was we've waived mindful and respectful of the conditions
all subscription fees in April for them, in each State, abiding by the various rules
which was quite a significant measure on that the governments are putting in place.
our behalf. But also, we've given them an
extension on the previous billing cycle of Q: In terms of a digital strategy, where
an additional 30 days, to support them do you see the market going once we've
through this period. actually gotten through the worst of the
On top of that, we've also provided them pandemic? Are we going to see a greater
with a number of tools and guides to help shift towards digitalisation? People using
support them through these changing the internet to conduct business?
times, particularly as we move into some RD: Absolutely. To be fair we're already
of the restrictions that the governments seeing dealers more willing to engage
are putting on them, we decided to give with platforms like Gumtree Cars. You'd
them some digital guides also too, some be familiar with the research that we
tips on potentially how they can interact conducted prior to the situation with
with customers who are unable to come COVID-19, connecting the disconnected
to the dealership for various reasons. research that we put into the market last
year. What we saw is Australian dealers
Q: How well are dealers coping with embracing technology for some time now.
those restrictions that the government is But we saw the findings reveal that
placing upon them? dealers are generally positive around
RD: Our thoughts are always with people technology, and the majority of dealers
more broadly across the industry, but indicated that they anticipate increased
in particular the first thing we wanted usage of things like social media and
to focus on was making sure not only mobile, that have a positive impact on
from a dealership point of view, but business.
also internally, that our health and our I think the effect of COVID-19 and the
staff's health and also the staff and the situation we're all in, will mean the
dealership, the health, well-being and speeding up of that process.
safety was the first priority. It's already in place with the majority
So we proactively have been reaching Continued on page 7
6 | AUTOTALK MAY 2020 | www.autotalk.com.au
NEWSTALK
Continued from page 6 very large restructure of their dealerships.
With all that going on, is it just as
"It's already in place important now as in the future, for dealers
with the majority of to be thinking ahead about how they can
conduct business quicker, faster, more
dealerships, and we effectively?
firmly believe partners RD: There's a couple of parts to this
like Gumtree Cars are question, and there's a couple of answers
I'd like to give. The first thing I want to
here to support them respond to is the Deloitte figures that you
as they embark on that mentioned, and we know even before
journey, and also too as the COVID-19 situation started to take
effect that there were changes within the
they need to learn more industry. You mentioned Holden leaving
around how to embrace Australia, also too, Honda's decision
these online tools." to rationalise their dealer network and
change their distribution model. So we
of dealerships, and we firmly believe saw signs of that pre COVID-19.
partners like Gumtree Cars are here to And not that anyone can predict how
support them as they embark on that the industry will look once we get
journey, and also too as they need to through this situation, but you would
learn more around how to embrace these suspect that there would be further
online tools. And the other part to that is, changes. I would say that the OEMs will
whilst we know customers still want that be looking closely at the model.
show room experience, I think having But the one thing that I will say, and again,
the digital strategy in place, enables our research that we conducted last year
dealerships to engage and connect with show that still 56% of vehicle purchasers
buyers also in the digital space. wanted to enter and have a dealership
But also, I think it's a key to their experience before they made the buying
survival as we move past the current decision.
pandemic. I suppose the good news is So we still know that the majority of
for dealers, is there are really simple Australians want to visit a showroom,
solutions that they can engage with and they want to have an experience before
implement really quickly, and of course purchasing a vehicle. So as I said, we
a simple solution is having all their know that the COVID-19 situation will
inventory listed on a site like Gumtree. probably cause the OEMs to evaluate
We know that in the current situation it's their respective strategies, and they might
really important for them to retain their modify their approach eventually.
visibility, also to stay at the top of mind I'm sure off the back of that, dealers
for potential buyers who, in these current would prefer to hold less stock, and drive
situations, will be browsing on our site. down some of their holding costs. But
And potentially will be preparing to buy, I don't see mass showroom closures,
once the crisis is over. And that's one and I certainly don't see vehicles being
of the key reasons why we made that delivered from 3PL distribution centres
decision to waive all the fees in April, to for instance becoming the norm.
make sure the dealers can list all their But I think one thing's for sure, having a
inventory on the site and be confident robust digital strategy, and being able to
they can manage their cash flow through list all your inventory online, should be
this uncertain period. the number one priority right now.
I guess the other way to look at it is, we
Q: Deloittes have said that dealerships need to continue supporting the dealers
are going to shrink in number. We've seen through this period of uncertainty, and
the demise unfortunately of Holden. We make sure we all, as an industry, come
know that Honda is going to undergo a out the back of it stronger.
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autotalk.com.au
AUTOTALK MAY 2020 | www.autotalk.com.au | 7
NEWSTALK
INDUSTRY ASKS FEDERAL GOVERNMENT
TO RECONSIDER COVID-19 CRITERIA
T
he Motor Trades Association of ing Cash Flow for Employers relief, be significant.
Australia (MTAA) sumitted a paper apprentice subsidy and commercial VADA members do not agree that the
to the Federal Government calling tenancy packages. VFACTS figures represent an actual
for a rethink on the threshold and criteria • That the Australian Government ex- reflection of the trading period March
of COVID-19 relief packages for the auto- empt all automotive franchise dealers 16 through to April 1, 2020. Survey data
motive sector. with an annual turnover of $1 billion or drawn from a representative group of
The paper is called “The case for more from the 50% turnover downturn 70 VADA members shows COVID-19
exemptions from threshold and staff criteria mandated within the JobKeep- attributed overall downturn from March 16
criteria in Federal Government COVID-19 er wage subsidy. to April 15 of 70.1%. In the March portion,
relief packages for automotive dealer • That the Australian Government those figures showed an average weekly
franchises.” advises the National Cabinet that au- downturn of 62% and 67.5% respectively.
It was submitted on behalf of the tomotive franchise dealers should also Sales for dealer finance to consumers
Victorian Automobile Chamber of become eligible for all state-spon- has fallen from what was already at pre
Commerce (VACC) and the Victorian sored relief and stimulus packages. COVID-19 dealer daily average of 6.31
Automotive Dealers Association (VADA). • That the Australian Government contracts per day, to a current level of 1.41
It was written at the request of members extend the deadline to the enhanced contracts per day, per dealer.
of the VADA executive committee. It instant asset write-off until September The COVID-19 impact is being felt from
was created using data supplied from 30, 2020. single car dealership franchisees through
VADA members and it is also relevant to to the multi-national companies who have
farm machinery, commercial vehicle and The reasons for this are: dealership holdings in every state and
motorcycle dealers. New vehicle sales data contained in territory.
VFACTS, released April 3, 2020 also In September 2019 dealer group
The key recommendations delivered to reveals that car sales in Victoria are 15% behemoth AP Eagers had an estimated
the Australian Government are: (YTD) in decline. The national YTD average market capitalisation of around $3 billion. It
• That the Australian Government is 13.1%. Prior to the outbreak of COVID-19, is estimated that the market capitalisation
exempt automotive dealer franchises Victoria was 11.9% in decline, so the full on April 17 was $1.01 billion. Its shares
from staffing and turnover thresholds effect of COVID-19 on new car sales is yet listed on the Australian Stock Exchange
as currently mandated in Boost- to be fully realised, expectations are it will Continued on page 9
8 | AUTOTALK MAY 2020 | www.autotalk.com.au
NEWSTALK
Continued from page 8
optimum trading environment, struggle with VADA members reporting a daily
(ASX) peaked at $14.49. Those shares fell to get near that and only the top 10% of average loss of 41.3%, per dealership in
to a low of $2.70 in late March 2020 and dealers achieve this outcome. The top the lucrative parts sales department. Add
are currently trading on the ASX at $3.94 brands have an average available margin to this dealership service departments on
(April 17, 2020). in a car before discount of approximately average tracking at 11.29 less service cars
In September 2019 dealer group 8-9% and then they are discounted per day. This will be further exacerbated
Autosports Group (ASG) had an estimated dramatically beyond that to win business. as new car sales and aftermarket repairers
market capitalisation of about $352 continue to flounder.
million. ASX advises that the market VADA members also advise that on
capitalization for ASG was on April 17, "It was created using average, 50% of total dealer margin is paid
2020 at $148.74m. Its shares listed on the data supplied from in the form of post-facto bonuses that are
Australian Stock Exchange (ASX) peaked connected with statistical performance
at $1.84 in November 2019 and are VADA members and it criteria, but always with a large emphasis
currently trading on the ASX at $0.74 (April is also relevant to farm on Customer Satisfaction Index (CSI).
17, 2020). The impact of a lack of cash flow as a
A Deloitte Profit Focus report reveals
machinery, commercial result of a market that is in free fall at 70.1%
that dealer net profitability for Q2 of 2019 vehicle and motorcycle has resulted in dealers being cash poor
as a percentage of sales was 1.2%. That and struggling to meet weekly payroll.
dealers."
average profit in Q1 was 1%. A further This has necessitated that dealers rapidly
update commissioned by VACC from reduce staff levels. VADA members have
Deloitte in March 2020 advises that the Factoring that 2% of a large volume advised a reduction in staff levels from a
profitability percentage for both 2018 turnover may appear healthy, it is benchmark aggregate of 2702 staff (March
and 2019 was benchmarked nationally at important to be reminded that the 16) to a total of 2005 staff on April 15.
0.90%. difference between it being a 2% profit That is a decrease of 28.9% in 30 days.
The new car dealer market has been and falling into the red can be as little The fallout for dealers in regional Victoria
beaten into a belief that an acceptable as a single dealership department is along a similar trajectory, with regional
level of net profit as percentage turnover underperforming. dealers reporting a 27.8% reduction in
is 2%. Many dealerships, even in an This type of underperformance is the case staff.
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AUTOTALK MAY 2020 | www.autotalk.com.au | 9
DEALERTALK
SYDNEY DEALERS
FAVOUR CLOSING ON SUNDAYS
A
recent survey carried out by the and margins within the industry are the Jackson says the MTA-NSW would like to
Motor Traders Association of New slimmest, they’ve ever been. see changes made to current legislation
South Wales (MTA-NSW) shows “Most of the larger dealership groups if possible, to make it mandatory for
that many Sydney dealerships favour clos- want to close on a Sunday because they motor traders in NSW to close their
ing their yards to trading on a Sunday. know it will be beneficial, but this will only doors on Sundays, and then apply for an
The MTA-NSW survey received more happen if everybody commits to it. If one exemption to open.
than 135 responses from automotive dealership stays open, then the others will But he says that COVID-19 has interrupted
dealership members. More than 63% of too. He notes that some dealers are now plans to meet with the relevant NSW
respondents were large motor dealer digitally trading seven days a week. government ministers to discuss the issue
groups with multiple sites, more than “The model has to change. Salespeople and move it forward.
29% were standalone new and used don’t like working seven days a week, The Australian Automotive Dealers
car dealers, more than 6% were used dealerships are finding it harder and Association chief executive officer James
car dealers and more than 1.5% were harder to recruit good staff, and then Voortman says the industry body would
motorcycle dealers. there’s the financial burden of paying for prefer a six-day trading period be imposed
When asked the question: “Sunday a Sunday loading, as well as penal rates, by law instead of a voluntary code
trading – yes or no?” More than 81% superannuation, low margins and so forth,” “Making it law would bring NSW in line
of respondents said yes to closing on he says. with most Australian jurisdictions and it
Sundays but some 19% said no, they would “Most vehicle sales occur during the would create a clear set of rules for all
prefer to remain trading on Sundays. working week of Monday to Friday dealers,” Voortman says.
Regarding the impacts associated with with deliveries on a Saturday. Seven- “We have feedback that there are
Sunday trading, more than 92% of the day trading means the sales target is competition law concerns with trying
dealerships surveyed said they had stretched out over a longer period. to pursue a voluntary code, but it is
difficulty employing and/or retaining staff, “Some dealerships are already closing on something we are actively seeking advice
just 8% responded that they didn’t. Sundays but it’s not a majority,” Jackson on."
More than 94% of the survey respondents says. Voortman says the major benefits of six-
said that Sunday trading restricts quality day trading would be that dealers will be
of hiring staff, and more than 92% said able to retain and attract high quality staff.
closing on a Sunday will not impact their “Trading on a Sunday contributes
business, while more than 93% said that towards staff burnout and the turnover of
Sunday trading did impact the business personnel. It will also make the industry
financially. more attractive to those people within
MTA-NSW senior divisional manager motor Sydney who are considering a job at a
dealer support Mark Jackson says the dealership,” Voortman says.
organisation created the survey because Another factor in the move to six-day
it understood there was an appetite from trading is that more and more customers
some dealers to have a discussion about are looking for cars on the internet first
not trading on Sundays. before heading to a dealership.
It took 12 months to design and get Mark Jackson “The emergence of the digital era
the survey out, but Jackson says he has resulted in much of the research
was pleased with the results and the According to Jackson, as the legislation associated with buying a car being
response, particularly from the larger currently stands there is no means for an conducted online,” Voortman says.
dealer groups. amendment as there is one set of rules for “This has enabled well-informed
He says it was the large multi-franchise any retail business that operates seven customers to create a shortlist of vehicle
dealership groups that drove the move days a week. Currently NSW dealerships options from the comfort of their own
to Sunday trading in the 1990s, and it is that wish to close their premises on a homes which in turn has meant the
these groups who now want to reverse Sunday have to apply for an exemption to customers visit fewer dealerships on
away because they can’t retain good staff do so. average,” he says.
10 | AUTOTALK MAY 2020 | www.autotalk.com.auNEWSTALK
ANCAP releases ‘Beyond the Stars’report
A
NCAP safety has released its “These new ratings cost more than $18 ANCAP.
annual “Beyond the Stars” report million to produce and represent 11% of “We produced our first national television
which measures the costs, the new light vehicle sales,” Goodwin says. commercial, airing with a reach of almost
collaboration and the consumer engage- “A record 96% of new vehicles sold 16 million. Social media engagement was
ment of the work carried out by the in Australia and New Zealand held an up across all platforms, and the highest
organisation. ANCAP rating. Encouragingly, 92% were number of hits to our website was when
“The production of a simple star rating five-star, 3% were four-star, and less than Uber Australia announced its policy on
sounds relatively easy, but a lot goes 1% were three stars or less. five-star vehicles.
on to make sure our star ratings reflect “We saw record investment from the “ANCAP’s ability to influence market
the safety performance of vehicles Australian automotive industry to change and improve the safety of our
and acknowledge the significant support ANCAP tests with $3.62 million vehicle fleet is a direct result of the
advancements being made by vehicle in vehicles and test costs covered by continued support received from our
manufacturers to ensure their vehicles vehicle brands. member organisations and partners.
meet 5-star standards,” chief executive “Informing and educating is key to a “As I depart ANCAP I want to thank
James Goodwin says. safer community - a consideration that is the dedicated staff, members and
“Most importantly, we do what we do to front-of-mind in current times. Consumer stakeholders for their ongoing
ensure consumers can use our ratings to awareness increased with 75% of commitment to safer vehicles and the
empower their vehicle choices,” Goodwin Australian new car buyers and 63% of support and encouragement they have
says. New Zealand buyers aware of ANCAP. It provided to me,” Goodwin says.
He says 37 vehicle models received is great to see that awareness is highest Visit ancap.com.au/facts for facts and
ANCAP safety ratings in the past amongst our most inexperienced drivers figures.
financial year, covering 205 variants. with 83% of 18-24 year olds aware of
AUTOTALK MAY 2020 | www.autotalk.com.au | 11NEWSTALK
AUTOTRADER AND CARSGUIDE
WAIVE MAY DEALER FEES
T
o further support Australian dealer- “This initiative will help alleviate some
ships, Autotrader has announced pressure that Australian dealers are
it is waiving all dealer fees for the feeling at the moment. And for those
month of May. dealers who aren’t currently using
It follows on from the 50% discount Autotrader, it may help get them more
applied to all dealer fees in April. This exposure and ultimately some more
offer of support will be automatically enquiry,” Autotrader and CarsGuide CEO
applied to all existing customers and it Shaun Cornelius says.
will also be available to any Australian Autotrader has also just launched
dealers who don’t list their vehicles with contactless sales process tagging,
Autotrader. allowing dealers to clearly communicate
The offer includes the full suite of to car buyers on their listings what Shaun Cornelius
Autotrader benefits: listings also being initiatives they’re doing to provide a
posted to CarsGuide and Facebook contactless sales process. Consumers
Marketplace, Autotrader Dealer Hub, will also be able to filter search results by dealerships are open, keen to deal
Kelley Blue Book Price Advisor valuations, those dealers offering these initiatives. and are providing initiatives to put
plus multiple opportunities to promote “This is a really important initiative. We consumers’ minds at ease about visiting a
the dealership. want Australian car buyers to know dealership,” Cornelius says.
ORIX ride-share ready rental vehicles
C
orporate fleet, commercial “By consolidating all our rental services, “By consolidating all our
vehicles and novated leasing we are uniquely positioned as the only
provider ORIX Australia Corpora- fleet management operator with a full rental services, we are
tion Limited (ORIX) is launching a new national rental division. We can now uniquely positioned as the
business called ORIX Rental. provide seamless full-service mobility
only fleet management
ORIX Rental is an expansion of the solutions to any business of any size
commercial vehicle rental and leasing anywhere in Australia.” Harrison says. operator with a full
service previously known as ORIX “Whether it’s a Prime Mover or a Prius, national rental division.
Commercial. we have the vehicles to keep driving
The new offering will encompass not businesses forward,” he says. We can now provide
only rideshare-ready rental vehicles, ORIX Rental follows a series of recent seamless full-service
but also ORIX’s flexi-lease, innovations the company has made
mobility solutions to
short-term hire, truck, in order to better address the
trailer and commercial changing expectations of any business of any size
leasing businesses. Australian businesses. anywhere in Australia.”
The new business Most recently, ORIX launched
will be led by ORIX the Australian-first automated
Rental general SME vehicle acquisition
manager Grant platform, VOOM, in 2019. The
Harrison who says digital platform was named
its launch underscored the best
the company’s innovation in the property,
commitment to putting Grant Harrison construction and transport
its customers first. Industry in the Australian
He says the launch marked a momentous Financial Review’s 100 most innovative
shift in ORIX’s strategy. companies awards.
12 | AUTOTALK MAY 2020 | www.autotalk.com.auDEALERTALK
Lexus tells customers it is ‘here for you’
L
exus Australia is extending the brand's customer-centric Certain dealerships may also make available video conferencing
focus by launching an online hub under the “Here For You” and other contactless sales, including delivery services and test
banner and a social media programme #ParkedForAWhile. drives to the client’s front door.
An awareness television commercial guides customers to an In addition, Lexus says its service centres remain open, and
online hub for further information. The online hub – lexus.com.au/ the fleet of service loan cars are regularly sanitised; an owner’s
hereforyou – delivers an immediate communication line between local/preferred Lexus dealer may deliver a service loan car when
Lexus and owners, with the status of operations updated in real- a vehicle service is required, so they don’t need to visit the
time. dealership.
It says that Lexus dealerships are open for sales and service, Furthermore, Lexus DriveCare continues to operate for Lexus
adopting measures in line with best-practice advice from Encore Members 24 hours a day including:
government and health authorities, including increased • Breakdown assistance with basic mechanical assistance and
cleaning and hygiene, and physical distancing guidelines. fuel, battery or tyre/wheel replacement.
• Breakdown towing as required to a Lexus Dealer or nomi-
nated technical centre.
• One-way metropolitan taxi fare up to $150 (including GST).
• Entry assistance for vehicle lock outs (selected Lexus models
only).
• Off-road patrols for LX and RX AWDs.
• Personal Assist service a vehicle-related incident over
100km away from home and the vehicle is immobile for
• NZ’s number one automotive workship
more than 24 hours.
management software for over 25 years.
• Courier service for urgent small parcels or documents.
• The ultimate specialist workshop software • Clothing and personal effects cover up to $250 (including
package GST).
• The hub also enables Lexus financial services customers
• Cloud-based and hosted options available whose personal circumstances have changed as a result of
Covid-19 to seek relief.
• Installation, Configuration, Support and
An application form and specialist email address – hardship@
Trainer from the industry best
lexusfinance.com.au
• Range of options from the entry level lite to – have been provided to deliver Lexus financial services
the all-inclusive Elite customers guidance and assurance.
Anticipating an owner’s needs while at home, Lexus Australia
will bring to life entertaining content through social media
including making available the inspiring hospitality series
Journeys in Taste.
Lexus is also complementing its Here For You messaging with a
#ParkedForAWhile social media campaign.
In addition to delivering an educational video about the
60,000 hours of practice it takes to become a Takumi master
Contact Details:
craftsperson, owners – and particularly their children – will
P: SAM Admin +64 9 583 2451 also be invited to test their Takumi skills.
SAM Support +64 9 583 2455 Based on the principles of Japanese Takumi master
E: info@sam.co.nz craftsmanship, aspiring Takumi masters are challenged to fold an
origami cat with their non-dominant hand within 90 seconds.
AUTOTALK MAY 2020 | www.autotalk.com.au | 13DEALERTALK
LUXURY BRAND
FIVE-YEAR UNLIMITED
WARRANTY BATTLE HEATS UP
T
he battle amongst the luxury car EQC and plug-in hybrid variants, all of Jaguar Land Rover recently announced
brands as to who will offer a five- which will receive a five-year/unlimited a five-year unlimited km warranty as a
year unlimited kilometre warranty kilometre warranty when used solely for limited time sales promotion on both new
has just heated up as Volvo Car Australia private purposes. and demonstrator Jaguar and Land Rover
confirms it will do so, while Jaguar Land Passenger cars used for commercial Vehicles.
Rover is offering such a warranty through applications – for example, a taxi or The offer applies to selected new and
a sales promotion. ride- share vehicle – will be covered demonstrator Jaguar XE, XF, E-Pace,
Volvo Car Australia has confirmed it by a five-year/200,000km warranty. F-Pace, I-Pace and F-Type new and
will move to a five-year manufacturer’s Complimentary roadside assistance will demonstrator models sold and delivered
warranty from April 1, following the be extended to five years for cars, vans between 01/04/20 and 30/06/20.
Australian arm of Mercedes-Benz and utes, whether the vehicle is used for It also applies to selected new and
which announced its five-year warranty private or commercial purposes. demonstrator Discovery Sport, Discovery,
programme in early March. Mercedes-Benz managing director Horst Range Rover Evoque, Range Rover Velar,
“It is the intention of Volvo Car Australia von Sanden says introducing a standard Range Rover Sport and Range Rover
to move to a five-year factory backed five-year manufacturer’s warranty models sold and delivered between
warranty. We are in the final stages of reinforced the company’s enduring 01/04/20 and 30/06/20.
resolving the necessary documentation commitment to enhancing the customer BMW Group Australia has told the
required to facilitate that intention,” a ownership experience. motoring media it has no plans to change
company spokesperson says. “With a five-year manufacturer’s from its current three-year unlimited
“When completed, the commencement warranty across our entire cars and kilometre warranty. Boss Vikram Pawah
period of the warranty will be backdated vans range supported by our existing recently told motoring journalists that his
to 1 April, 2020,” the spokesperson says. capped price servicing and service plan customers were happy with the status
Mercedes-Benz says a grace period portfolio, customers can have increased quo, and he had no desire to change the
will apply to purchasers of new vehicles flexibility and certainty throughout their warranty just for the benefit of marketing.
before April 1, with the implementation journey with Mercedes-Benz,” he says. Audi, Bentley and Porsche all offer
of the new warranty structure to be The pressure is now upon other luxury three-year unlimited km manufacturer’s
backdated to include vehicles sold on or car manufacturers to follow suit, while warranty, while a four-year manufacturer’s
after March 1, 2020. some are dipping a toe in the water warranty is offered by Lexus with a cap
The new Mercedes-Benz warranty covers through sales promotions, others are of 100,000km, but Rolls-Royce provides
the entire passenger car range including being openly reluctant saying there is no unlimited km under its programme.
Mercedes-AMG models, the all-electric demand for this from customers.
14 | AUTOTALK MAY 2020 | www.autotalk.com.auDEALERTALK
MURRAY BRIDGE HYUNDAI
WINS CONSECUTIVE DEALER
OF THE YEAR AWARDS
F
or the second consecutive year a • Paul Wakeling Hyundai, Campbell- their peers, and guarantees customers
regionally-based Hyundai dealer- town, NSW an assurity and confidence in an
ship has triumphed over its metro- • Castle Hill Hyundai, NSW organisation that is proud of the Hyundai
politan-based contemporaries to become • John Hughes Hyundai, Victoria Park, heritage and focused on outstanding
the brand’s 2019 National Platinum dealer WA behaviours.
of the year • South Morang Hyundai, VIC “It is with great pride that we recognise
Led by managing director Jack Dowling, • Essendon Hyundai, VIC these performing dealerships and thank
Murray Bridge Hyundai is one of the • Ferntree Gully Hyundai, VIC them for their ongoing commitment
three dealerships and seven automotive • Dandenong Hyundai, VIC to the Hyundai brand and our mutual
brand franchises operated by the third- • Cranbourne Hyundai, VIC customers,” they say.
generation family owned Duttons Motor • Berwick Hyundai, VIC Hyundai Motor Company Australia has
Group in South Australia. • Harrison Hyundai, Melton, VIC been running the Platinum Dealership
Operating under Covid-19 restrictions “The dealerships listed are also being Awards programme more than seven
the dealership announced the back- recognised as Platinum dealerships, years.
to-back win on its Facebook page: having achieved extraordinary levels of It’s been a successful awards season for
“We are very proud and grateful to be commitment in providing the ultimate Duttons Motor Group.
acknowledged for our efforts at Duttons in customer satisfaction, attainment Earlier in the year the company also
Murray Bridge Hyundai. Thank you to of important KPI, and reporting key picked up the Volkswagen Australia
all of our customers for your support performance criteria,” Heo and Kett say. Groups 2019 national dealer of the year
in helping us achieve this prestigious “Being recognised as Hyundai Platinum award as well as the 2019 rural dealer
award.” dealership is one that is revered by the of the year for its Adelaide Hills-based
Due to the pandemic there was no Hyundai network, highly regarded by Volkswagen dealership.
ceremony as Hyundai Motor Company
Australia announced the winners of the
2019 National Platinum dealer of the
year awards and the winning Platinum
dealerships through an internal company
bulletin.
The bulletin was signed by chief
executive officer Jun Heo and chief
operating officer John Kett.
“Our sincere congratulations and
appreciation are extended to Jack
Dowling and his entire team for
performing and achieving at the
highest level. In fact, this is the second
consecutive year that Murray Bridge has
asserted its dominance in claiming this
prestigious award,” Heo and Kett say in
the internal bulletin.
The 2019 Platinum program dealership
award winners were:
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AUTOTALK MAY 2020 | www.autotalk.com.au | 15DEALERTALK
MASERATI AUSTRALIA REWARDS
OUTSTANDING DEALERSHIP STAFF
B
efore the Covid-19 restrictions
banned mass gatherings, Maserati
Australia recognised its high-per-
forming dealership staff with an awards
evening at the Museum of Contemporary
Art in Sydney.
Hosted by Maserati Australia chief
operating officer Glen Sealey, the
awards differ from other brands in that
staff are recognised rather than the
dealer network. Maserati is officially
represented by one dealership in
Adelaide, Brisbane, Canberra, Gold
Coast, Melbourne, Perth and two in
Sydney.
Maserati Gold Coast’s James Staniforth
was awarded 2019 sales manager of the
year, and Maserati Melbourne’s Leo Kao
took the 2019 sales executive of the year
award.
Although no longer working with the
Trident brand, Isabella Kerr from Maserati
Melbourne won the award for 2019
marketing manager of the year.
The accolade for 2019 after sales
manager of the year went to Adriano
Giorgi from Sydney-based McCarroll’s
Maserati in Artamon.
Glen Sealey says while the awards
recognise individual employees it is a
team effort as the dealerships also have L-R: Leo Kao, Glen Sealey, James Staniforth, Adriano Giorgi
to reach targets as part of the process.
“Our view is that we put in systems that
we want the individuals to follow, so the taking a long-term view as Melbourne is chain by Covid-19 has affected some
annual awards reward those members of the largest luxury market for the segment customers but he says they have been
staff who have adhered to the systems to in which Maserati operates. very understanding of the situation.
achieve such recognition. “The Melbourne service workshop is “We have a wonderful customer base,
“There are different criteria and key busy, which is very positive, and we offer they understand that there isn’t much
performance indicators for the sales a full Maserati Concierge service, which we can do about the supply chain, but
staff, the marketing staff, and the means customers need not come to the we can facilitate what they are driving
aftersales staff to achieve in order to be dealership with the car, because we can today.
considered for an award,” he says. collect and deliver their vehicle to and Most don’t use their Maserati as a primary
A division of Ateco Group, European from their home,” Sealey says. vehicle because they will have other
Automotive Imports (EAI) is the In 2019 Maserati Australia sold more vehicles to drive,” he says.
independent distributor for the Maserati than 482 vehicles of which 301 units Sealey says although the reveal of the all-
brand in Australia, New Zealand, and were the Levante SUV, but this was a new Maserati MC-20 sports car has been
South Africa. The company recently took 25% decline on the 2018 total of 642 pushed from May to September 2020, it
over the management of retail operations units. will not change the production timetable
of Maserati in Melbourne from Zagame In the first quarter of 2020 Maserati has for export markets.
Automotive. sold 117 vehicles; February 2020 saw 59 “It’s a very exciting time for us, and we
Sealey admits it was a difficult time for new vehicle registrations but sales fell in continue to expect the new MC-20
such a move as the company began March 2020 to 31 units. will arrive in the Australian market as
trading om March 1, but the company is Sealey says the disruption to the supply scheduled for mid-2021,” he says.
16 | AUTOTALK MAY 2020 | www.autotalk.com.auNEWSTALK
CARSALES TAKES TO THE AIR
WITH GARAGE 41
T
he editor-in-chief of carsales, Mike sponsor of Garage 41 and I’m excited to
Sinclair, has joined Targa Tasmania co-host the series with Ridge and Morley,”
driver Glenn Ridge and motoring Sinclair says.
journalist David Morley to host 7mate’s “From sharing the latest news to
new television series, Garage 41. revealing our favourite cars and
Garage 41 covers current issues and interviewing some of Australia’s most
industry insights, highlights new and old famous faces, we are going to be
cars, and features famous faces such as: providing consumers with fun-filled,
entertainer Shane Jacobson; Supercars informative and engaging content.
driver Dave “Garage 41 will
Reynolds; the “Garage 41 will cover many cover many
first woman in different facets
the world to different facets of the motoring of the motoring
reach 300mph sphere. It’s a great way to sphere. It’s a
in a car, Rachell
demonstrate our passion for the great way to
Splatt; and demonstrate
Aussie muso automotive marketplace" our passion for
Wilbur Wilde. the automotive
As a major sponsor of Garage 41, marketplace,” Sinclair says.
carsales’ editorial experts will also appear Surrounded by luxury, prestige and
throughout this year’s debut series and classic cars, the series is filmed at Dutton
inform consumers with a wide range of Garage, in the heart of Richmond.
content including the latest features and Garage 41 kicked off on Saturday, April
new car reviews. 18, and will air weekly on Saturdays at
“We’re thrilled to continue growing 3pm on 7mate, and also available for
carsales’ editorial footprint as a major free on 7plus.
AUTOTALK MAY 2020 | www.autotalk.com.au | 17AFTERMARKET
Parts & Accessories
New LED lighting solutions from Narva
N
arva's new range of 12V Colour For added convenience, the white/red
LED strip lamps for interior and and white/blue variants also feature a
exterior applications also offer two touch switch to turn them on and off. The
different coloured lights to best suit the lamps also benefit from an extremely
situation. low current draw of 0.41A at 12V (white)
There are three models in the colour and 0.19A at 12V (amber/red/blue) and
combinations: White/amber, white/red proven SMD LED technology makes them
and white/blue. extremely reliable.
All models are fully sealed to IP66 and Narva's new dual colour LED strip lamps
resistant to sea salt spray, making them are backed by a five-year LED warranty
suitable for use on boats as well as in and are available from automotive,
four-wheel drives, campervans and four-wheel drive, camping and boating
caravans. outlets around the country.
While all three models provide a crisp
white light output at 6200°K (72 Lux at
two metres), making it easy to locate
items around the campsite or inside the
four-wheel drive canopy; it's the ability
to switch to alternative colours at the
push of a button that makes these LED From Roadside Assistance Supplier
strip lamps extremely flexible.
Amber and red light is ideal for to Solutions Partner
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fewer insects, while also being less
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by the campfire and relaxing. For use
in marine applications, the red and
choice delivering nextgen roadside technology and service
blue colour options are better for
navigation with less reflection off the
surrounding water than traditional
white lights.
On the inside of caravans and
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is great for providing mood lighting and
even for use as a night light.
With only a 13mm profile and a length
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For easy fitment, all lamps come with
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We’re supporting Manufacturers, Dealerships, Finance and Insurance groups in
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18 | AUTOTALK MAY 2020 | www.autotalk.com.auAFTERMARKET
Parts & Accessories
CAPRICORN ACTIONS
CORONA VIRUS SUPPORT AND GUIDANCE STRATEGY
A
ustralasian automotive coop- Capricorn members can connect, share
erative Capricorn has actioned a ideas and discuss their experiences
Covid-19 communications plan to operating a business during these
assist more than 20,000 members, pre- unprecedented times.
ferred suppliers and staff located across The Capricorn team is also available
Australia and New Zealand. through these forums to answer any
Led from the onset of this pandemic by questions that members may have.
Capricorn Group chief executive officer Capricorn’s community platform
David Fraser, a detailed strategy was also features a resources section
introduced ensuring that members in dedicated to ensuring members are
each country are accurately informed of accurately informed of any changes
the business support mechanisms that to the assistance packages both at
may be relevant to them. the federal and state levels, a series David Fraser
As the vast majority of Capricorn of videos designed to help workshops
members are small, family-owned through these extraordinary times, and of us during such an unprecedented
automotive aftermarket businesses, these a comprehensive list of mental wellness situation like this to make use of our
communications include timely member resources. online services platforms and services
exclusive Covid-19 emails providing Since March 20, The Workshop capabilities to do all that we can to
information in line with announcements community platform has had more than provide assistance to our members, while
made by state and federal governments. 16,500 visits and more than 10,000 new also providing telephone or online-based
These have been provided in an easy users accessing the information made support.
to understand format with state specific available. “Our actions to date and the continued
information, making it easier for members “Our responsibility from the onset of support services that we will be
to identify their eligibility for the various Covid-19 was first and foremost to ensure providing our members across Australia
stimuli, staff retention and other taxation- that our members and preferred suppliers and New Zealand have one major
based incentives that have been and are constantly and accurately informed of objective, to ensure that we sail these
continue to be introduced. the local, state and federal government uncharted waters together, emerging
Capricorn also continues to update “The stimulus mechanisms and support safer and stronger once things return to
Workshop”, the cooperative’s member services that have been introduced and some form of normality,” Fraser says.
community platform that provides continue to be made available to them,” “All of us at Capricorn understand that
business support and resources to help Fraser says. we are all in this together and that
members stay strong through Covid-19. “As a cooperative structured organisation, supporting our members, preferred
The Workshop includes a Covid-19 everything that we do is for the benefit suppliers and staff through this pandemic
community support forum, where of our members, so it is incumbent is paramount,” he says.
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AUTOTALK MAY 2020 | www.autotalk.com.au | 19PEOPLETALK
AN HONEST PERSPECTIVE
AMID THE COVID-19 CRISIS
M
y heart goes out to American change-over this year will likely
dealers and their families during put pressure on one to three-year-
By Dale Pollak
the COVID-19 crisis. old used vehicles as factories help
vAuto founder and Cox
In my time as a dealer, we saw dealers clear out unsold 2020 new
Automotive executive
recessions and other disruptions in vehicles.
vice president
the US that caused tough retailing
conditions. But none comes even close Fact 2: Six months from now, there
to what dealers are experiencing now. will be huge, if not unprecedented,
As such, I’d like to share some levels of wholesale supply in the
perspective and guidance to help market. One of Manheim Auction’s even as they pursue federal and state aid
dealers better manage their inventory biggest tasks today is determining programmes.
investments and related retail processes where and how to park the incoming When presented with these facts, many
today, to ensure a brighter tomorrow. streams of off-lease, rental fleet and dealers arrive at a clear conclusion of
dealer-owned used vehicles. what they should do with their current
What do I do with my used inventory? The pace of incoming supply used vehicle inventory: “Sell it quickly
When this question comes up on dealer exponentially exceeds the rate of sales. and keep the cash.”
calls, I share Cox Automotive’s informed Physical auctions are closed and there I believe the sell-down strategy should
viewpoint: The market isn’t likely to are fewer buyers at the select online start with the most risk-prone vehicles.
improve significantly in 30, 60 or even 90 auctions that remain open. In short, cars Across used vehicle inventories, the late-
days. are coming in, but they aren’t selling. model (2018, 2019 and 2020) vehicles
To help dealers answer questions about represent every dealer’s highest-cost,
how they should handle their used Fact 3: In six months, many of the record most-risky inventory investments.
vehicle inventories, I offer three facts: numbers of people who have filed for The value of these vehicles today will
unemployment benefits in recent weeks more than likely be less tomorrow.
Fact 1: In six months, as the 2021 models will still be out of work. Even worse, it The sell-now strategy also makes sense
arrive at dealerships from the factory, seems inevitable that more furloughs, given another business-in-crisis reality.
every vehicle in your inventory will be layoffs and pay cuts are likely to come as That is, cash is king.
one model year older. The model year businesses find it difficult to make payroll, Continued on page 21
20 | AUTOTALK MAY 2020 | www.autotalk.com.auYou can also read
