Yes to new, no to used imports

Transcription

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

Yes to new, no to used imports

Transcription

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