australia’s no1 autootie industr ournal edition 987 – … · vehicle sales in the state for...

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AUSTRALIA’S NO.1 AUTOMOTIVE INDUSTRY JOURNAL EDITION 987 – AUG 21, 2019 SUBSCRIBE FREE: CLICK HERE LUBRICANTS. TECHNOLOGY. PEOPLE. www.fuchs.com.au True volume JLR Australia takes action to reduce costs and meet ‘natural’ demand in tough market amid rollout of key new models FRESH AIR: T-ROC CABRIO RICH LIST: BUGATTI ‘110’ Glass’s - Leaders in vehicle specifications, valuation data, insights and RV forecasts By BYRON MATHIOUDAKIS JAGUAR Land Rover (JLR) is optimistic about its prospects in Australia leading into the next decade despite declining sales here and heavy losses overseas, with more appropriate supply to meet real-world demand in a slowing market as well as promising new models in the pipeline expected to lure more buyers into the fold. While Jaguar’s volume in Australia is up slightly this year (1.1%, to 1440 units), the British prestige brand is still coming from a low base compared to key rivals like Mercedes-Benz Cars – at 18,582 sales so far this year – while Land Rover has slipped 14.1 per cent over the same period, to 5690 new registrations. Speaking to GoAuto at this month’s launch of the Jaguar XE facelift and F-Pace SVR in northern New South Wales, JLR Australia managing director Mark Cameron revealed that the Australian subsidiary has already taken the crucial actions required to adjust to the sales downturn – including reducing staff numbers – in order to prioritise profitability and long-term sustainability. “In Australia, you have to look at how the market has decelerated over the last 18 months,” he said. “We, as other manufacturers, found ourselves with stock, and you have to clearly sell that stock. And the rate of which the industry adapts to what the true level of demand is can take some time. “So, you are comparing the year- on-year figures and saying what is the true customer demand rather than vehicles that manufacturers had in stock and had to just push through and find homes for. “We’re in the business now of selling true volume. We have got our supply/demand balance absolutely intact. We always, as everybody else does, strive to have one less car than there is a customer. Our dealers make better margins that way. We don’t have to go into more distress marketing activities. Continued next page Defender prototype

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Page 1: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

AUSTRALIA’S NO.1 AUTOMOTIVE INDUSTRY JOURNAL EDITION 987 – AUG 21, 2019

SUBSCRIBE FREE: CLICK HERE

LUBRICANTS.TECHNOLOGY.

PEOPLE.

www.fuchs.com.au

True volumeJLR Australia takes action to reduce costs and meet ‘natural’

demand in tough market amid rollout of key new models

FRESH AIR: T-ROC CABRIO RICH LIST: BUGATTI ‘110’Glass’s - leaders in vehicle specification and valuation data, insights and RV forecasts

Glass’s - Leaders in vehicle specifications, valuation data, insights and RV forecasts

By BYRON MATHIOUDAKIS

JAGUAR Land Rover (JLR) is optimistic about its prospects in Australia leading into the next decade despite declining sales here and heavy losses overseas, with more appropriate supply to meet real-world demand in a slowing market as well as promising new models in the pipeline expected to lure more buyers into the fold.

While Jaguar’s volume in Australia is up slightly this year (1.1%, to 1440 units), the British prestige brand is still coming from a low base compared to key rivals like Mercedes-Benz Cars – at 18,582 sales so far this year – while Land Rover has slipped 14.1 per cent over the same period, to 5690 new registrations.

Speaking to GoAuto at this month’s launch of the Jaguar XE facelift and F-Pace SVR in northern New South Wales, JLR Australia managing director Mark Cameron revealed that the Australian subsidiary has already taken the crucial actions required to adjust to the sales downturn –

including reducing staff numbers – in order to prioritise profitability and long-term sustainability.

“In Australia, you have to look at how the market has decelerated over the last 18 months,” he said.

“We, as other manufacturers, found ourselves with stock, and you have to clearly sell that stock. And the rate of which the industry adapts to what the true level of demand is can take some time.

“So, you are comparing the year-on-year figures and saying what is the true customer demand rather than vehicles that manufacturers had in stock and had to just push through and find homes for.

“We’re in the business now of selling true volume. We have got our supply/demand balance absolutely intact. We always, as everybody else does, strive to have one less car than there is a customer. Our dealers make better margins that way. We don’t have to go into more distress marketing activities.

Continued next pageDefender prototype

Page 2: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

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Continued from previous page

“Right now, in Australia, we are really well set with good supply, young supply, not overstocked, to meet the natural demand that’s there.

“I’m not chasing sales numbers. If that means we’re a few percentage points down on what we actually registered last year, so be it. It’s good business rather than volume. And that’s really important.

“I know still, in Australia, some brands are overstocked, they are pushing volume out, they are asking their dealers to register cars, but we’re just not going to do that.

“We had to make some changes in our office as well. We’ve grown very quickly as a company and as a brand. Sometimes when you have to manage the pressures of the business and finances, you have to take some countermeasures to manage your costs. It’s always not nice to have to take some jobs out.

“Actually, the number of people

affected was relatively small, and we’ve worked hard to help them find alternatives, but we’ve had to make some cuts. I joined here in September and then having to do that in January this year isn’t

what I had hoped to do, but businesses go through these cycles and I’m hoping we can grow again.”

Mr Cameron is confident Land Rover sales will recover with model activity including the recent launch

of the new-generation volume-selling Evoque, a forthcoming facelift of the Discovery Sport and the hugely anticipated reborn Defender arriving next April as JLR’s first real tilt at the big-selling Toyota Prado range in many years.

However, Mr Cameron warned that roadblocks remain ahead in Australia.

“Crucially for JLR, we are bringing cars to market that are distinctive, that aren’t me-too products, that find their own space,” he said.

“You would have seen the

announcement following the I-Pace launch that the next XJ is going to be an all-electric one, and we’re going to build that in the UK, and there’s more to come which I cannot talk about right now.

“We’re really focusing on how Jaguar in particular can be distinctively different from its competitors and have an offering at

a volume that makes money for us.“(But) we don’t have a crystal

ball on how the industry in Australia is going to develop. We’ve seen a tough 12 to 18 months. Luxury segments have been particularly under pressure. We’ve seen increasing taxation in states like Victoria which doesn’t help. It’s tough times in Australia right now

in terms of the economy.“What’s the next six to 12

months going to look like? We all hoped post-election and post-economic stimulus with rate cuts that we could see a bit more vibrancy in the industry.”

FULL STORY: CLICK HERETies that bind – next page

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Page 3: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

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By BYRON MATHIOUDAKIS

JAGUAR Land Rover (JLR) believes a mooted free-trade agreement (FTA) between Australia and the United Kingdom in the wake of a post-hard ‘Brexit’ should result in less expensive vehicles that are built in the United Kingdom for consumers Down Under.

In an interview with GoAuto at this month’s launch of the Jaguar XE facelift and F-Pace SVR in Byron Bay, JLR Australia managing director Mark Cameron said he expects the Boris Johnson-led British government will waste no time in seeking FTA partnerships with many countries, including Australia, in the event of a no-deal Brexit.

“If there is a hard Brexit, which is looking more likely, we don’t know how quickly FTA can be put

in place,” he said.“Right now, as part of Europe, we

pay a duty to bring our cars from Europe into Australia. It’s been said publicly in the last week or so on the Australian and British side, both parties want to get to an FTA very quickly between the UK and Australia for the benefit of both countries.

“For us, in Australia, that could give us a better outcome than what we have today, and so we have to wait and see the details, what trade agreements can be put in place post a hard Brexit if that’s what happens, and what does that look like for our industrial footprint?”

While most Jaguar and Land Rover vehicles would benefit from a post-hard Brexit UK/Australia FTA, some models such as the I-Pace EV made in Austria and

the new Defender that will be manufactured in Slovakia would not qualify, falling under a separate EU agreement with Australia.

Whatever happens, Mr Cameron added that any impending fear of Brexit had nothing to do with JLR’s moving production of some models outside of the UK, since these decisions were made years in advance of the Brexit referendum in June 2016.

“We are building the Discovery in Slovakia before Defender will be

built,” he said. “And, actually, and this is where some people rewrite history here, we made the decision to go in Slovakia well before people imagined that Brexit would happen.

“We knew we needed to build another factory somewhere else in the world, just to give us a hedging against currency movements, supply issues etc, and we chose continental Europe. That’s probably turned out to be a good choice in hindsight, but it wasn’t driven at all by Brexit.”

In January, the British government issued a press release stating that British trade with Australia “will continue when the UK leaves the European Union, supporting jobs in both countries” under ‘The Mutual Recognition Agreement on Conformity Assessment’.

It added that both nations had committed “to seeking a new ambitious, comprehensive free-trade agreement that will allow UK and Australian companies to enjoy an even closer trading relationship after the UK leaves the European Union”. Among the industries singled out is the automotive sector.

FULL STORY: CLICK HERENot helping – next page

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Page 4: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 4 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By BYRON MATHIOUDAKIS

JAGUAR Land Rover (JLR) Australia has added to the chorus of dissent over the Victorian state government’s recently introduced super-luxury tax on vehicles costing more than $100,000, stating that it could not have come at a worse time for the embattled automotive industry in Australia.

In an interview with GoAuto, JLR Australia managing director Mark Cameron called for an immediate abolition of the tax implemented from July 1, 2019, which comes on top of the federal government’s luxury car tax, reasoning that it will only impact new-vehicle sales and lead to job losses in the automotive industry.

According to Mr Cameron, fewer

sales would impose extra burden on the Victorian government’s finances and would serve as an ‘own goal’ for the state, with its negative impact – alongside rising unemployment – outweighing the extra revenue projected.

“The taxation regime is unfair,” he said. “What we’ve seen happening in Victoria is that car owners and car buyers seem to be the easy target. We don’t see the extra taxation on other luxury goods, and at a time when the market is down and we have lots of jobs employed in retailing, the extra taxation really isn’t going to help.

“And, actually, in the case of Victoria, I really doubt whether they’re going to raise the revenues that are being expected because buyers are going to change their

behaviour. And that could result in more depression in the car industry and more job losses.

“It’s just disappointing. In many cases, people have worked hard, built businesses, developed their careers, to be in a position to buy a more premium car, and then they get slapped with this level of taxation. It’s one of the issues in Australia that needs reform.”

Although it is too soon to assess the impact of the Victorian tax, new-

vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which was slightly worse than the national average of 7.7 per cent.

While sales of upper-large sedans costing more than $100,000 fell by nearly 35 per cent and sportscars over $80,000 slid by 2.8 per cent last month, registrations of SUVs costing more than $100,000 rocketed by 35 per cent.

Victoria was the second-largest

new-vehicle market in July, accounting for 29.1 per cent of total volume, just behind New South Wales at 31.7 per cent.

Mr Cameron believes introducing a usage-based tax would be a more effective and fairer way of raising revenue from motorists than a prohibitively high blanket tax at the point of purchase.

FULL STORY: CLICK HEREXJ case open – next page

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Page 5: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

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By BYRON MATHIOUDAKIS

JAGUAR Land Rover (JLR) may not import the incoming all-electric XJ limousine to Australia after it is unveiled globally next year – at least until a solid and viable business case can be built for it.

With electric vehicle sales still at the embryonic level in Australia and government support and incentives almost negligible compared to many other markets around the world, JLR Australia managing director Mark Cameron is unsure that offering the next XJ would be the most prudent step to make, particularly in light of heavy financial losses and subsequent restructuring at the British car-maker.

Asked if the all-electric XJ was guaranteed to come to Australia, Mr Cameron told GoAuto: “No. To be honest, we haven’t made the decision yet. While we’ve publicly

announced we’re going to build that car, the business case for Australia is still being developed. But I’d love to bring it in.

“I think we’ve been pretty brave with I-Pace (all-electric SUV launched last year). And let’s be honest, Australia isn’t an as yet developed EV market for various reasons. We could have easily said, ‘Actually, let’s hold fire as some of the other brands have and not bring that car into Australia right now.’”

Despite the cautious approach, Mr Cameron did reveal that his team is exploring all avenues to help bring the all-electric XJ to Australia and that the landscape is changing all the time, adding that such a move would have long-term benefits for the brand in this market.

“You have to start somewhere,” he said. “And if you look at Jaguar’s history, where in its great days it’s

where it’s been its most innovative and the leader, and (the I-Pace) has been absolutely the right thing to do, and we’re absolutely selling the right numbers that we planned for Australia.

“Whether in a category like the XJ that gives us a market opportunity in Australia – it’s a completely different question.

“But we’re talking about every month or six months that go by, things are going further, and we’ve yet to see some of our traditional competitors come into the market in Australia.

“I think when they do, the market will expand and I’m confident there will be some government policy on a state or federal level to provide

some encouragement to consider and buy electric cars.

“There’s going to be a tipping point at some point, but we haven’t reached it yet. I’d love to bring XJ and other future electric cars into Australia, but there’s got to be a business case, because the cost of bringing a car in and supporting it, marketing it and stocking it are all important considerations.”

Mr Cameron is also hopeful that luxury sedan sales will eventually stabilise, leaving a reduced but still sizeable market out there that needs to be serviced – particularly in prosperous built-up areas where commutes are short and thus suitable to EV driving.

“The (flagship sedan) segment has been traditionally under pressure, but I think the sedan share of the market is probably going to plateau now,” he said. “It might still decline a little bit more, but I still think there are enough people who want that type of car.

“The question is, if you provide that car – and a really good example is people who live and work in cities where their commutes are maybe 20, 30 or 40 kilometres per day, they want the luxury, the comfort, the environmental credentials of that type of car – you can see there being a market. But we need Australia to develop a little bit further in terms of the fundamentals for electric cars to grow more.”

Mr Cameron did admit that he was watching incoming competitors like the Porsche Taycan very closely before pushing the green button on the all-electric XJ.

“As more choice becomes available, there will be more consumer pressure for government to do something,” he said. “This tipping point can come quite quickly.”

FULL STORY: CLICK HEREMassive attack – next page

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Page 6: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

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By BYRON MATHIOUDAKIS

LAND Rover is confident its next-generation Defender will lure Toyota Prado buyers as well as brand loyalists and traditionalists with its combination of evocative design, modern-day engineering, contemporary packaging offering flexible seating choices, and leading off-road abilities, making it one of the company’s best sellers.

Sharing nothing with its smaller 71-year-old predecessor, the boxy retro-style 4x4 due in Australia in the second quarter of next year following its global unveiling next month is also expected to appeal to owners and fans of the previous-generation Discovery III and IV (L319 series from 2004 to 2016), since the succeeding technology-heavy and luxury-laden L462-

series Discovery V vacated the hose-down family-friendly wagon set by climbing significantly more upmarket when released in 2017.

In an interview with GoAuto, Jaguar Land Rover (JLR) Australia managing director Mark Cameron said he was hopeful that the 2020 L663-series Defender will become one of the most popular vehicles the brand offers as a result of its broader, everyday appeal.

“We’re a top-10 market globally for that car, and it’s going to be close to one of our best-selling individual nameplates,” he revealed.

“If you look at it in that context, and versus the historic affection for the brand and nameplate, and what I know about the car and what it is going to deliver, it is going to be massive for global sales, massive

for JLR, and massive for Australia.“Keep in mind, we did very well

with the Discovery IV here. Many people have bought Discovery Vs, but some others are waiting for something that is square design and utilitarian. And there is a huge market out there for that size and type of vehicle that we know is seducible, and I’m confident we will deliver.

“So, I think new Defender is going to be a car that has broad appeal to existing Land Rover customers –

Discovery IV customers for example, previous Defender customers, as well as a whole lot of conquest opportunity, particularly from another popular brand that I am not going to mention.

“It will be spot on for the psyche for the Australian consumer, where it is about the practicalities of outdoor life, transporting families longer distances, going out to the beach and hills, whatever. If there’s a country in the world that this car is best suited to, it’s got to be Australia.”

While the next Defender is downright utilitarian, it is far from crude. Leaked documents from abroad reveal three sizes known by their historical imperial (in inches) wheelbase measurements of 90, 110 and 130.

This points to a short ‘90’ wagon at 4343mm in length and 2587mm wheelbase, three doors with five or six seats – the latter evidently due to the aid of a van-style ‘1+2’ three-seater ‘bench’ seat up front – as well as a mid-size ‘110’ wagon at 4758mm and wheelbase of 3022mm, offering five, six or seven seats, plus a stretched ‘130’ at 5100mm, 3022mm wheelbase and eight seats.

FULL STORY: CLICK HERE

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Page 7: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

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By RON HAMMERTON

VOLKSWAGEN is getting back into the convertible business with the unveiling of a folding-roof version of its T-Roc small crossover.

Due to be unveiled in full at the Frankfurt motor show next month, the T-Roc Cabriolet will create a niche as the first mainstream drop-top small SUV when it hits the roads of Europe just in time for the northern summer next year.

Volkswagen Group Australia says it has no current plans to introduce the two-door, front-wheel-drive cabriolet alongside the hard-roofed T-Roc that will debut in local showrooms in April next year, but VGA general manager of corporate communications Paul Pottinger left the door ajar by adding: “It is an attractive vehicle that we’d consider if it became available.”

VGA has not had a convertible in its range since it dropped the Golf Cabriolet at the end of the Mark 6 Golf’s production run in 2016. A Beetle convertible was also produced overseas during the same era after being launched at the Los Angeles motor show in 2012.

The T-Roc Cabriolet sits on the same MQB compact platform as the current Golf, latest T-Roc and a myriad of other models in the VW Group, but it has been drastically re-engineered for open-air driving.

Even though it loses the rear doors, the cabrio is longer than the standard T-Roc in both the wheelbase (2630mm, +34mm) and overall length (4268mm, +34mm).

The folding soft-top makes the roofline 51mm lower, at 1522mm, while the overall width is 8mm

narrower at 1811mm.The electrically operated roof can

be raised or lowered on the move in just nine seconds at up to 30km/h, but the space required to store it contributes to a reduction in boot space from 445 litres to 284L.

Rollover protection devices spring up from behind the rear seat headrests in a fraction of a second if the vehicle tilts beyond a particular point.

A reinforced windscreen frame also adds rollover safety, along with

reinforcement in the underbody and various panels, including the doors.

A major selling point of the cabrio is the elevated seating positions that VW says will offer great views during top-down cruising.

The front seats sit 599mm above the road, while stadium-style rear seats are higher, at 616mm.

Two turbo-petrol powertrains will be available at launch in Europe – a 1.5-litre three-cylinder producing 85kW of power and 200Nm of

torque, and a 2.0-litre four-cylinder that develops 110kW and 250Nm.

The smaller engine comes with a six-speed manual gearbox while the larger unit gets a seven-speed dual-clutch automatic transmission.

Both of these engines are less powerful than the 140kW four-cylinder unit that will grace the T-Roc 140TSI hard-top in Australia at launch.

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Page 8: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

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By ROBBIE WALLIS

PEUGEOT has expanded its 308 range with the addition of the GT warm hatch, which is now available in a limited run of just 140 units in Australia.

Priced at $39,990 plus on-road costs, the 308 GT undercuts the GTi hot hatch by $6000, however its 1.6-litre turbo-petrol engine gives up 35kW of power and 45Nm of torque over its high-performance sibling – to 165kW at 5500rpm and 285Nm at 1750rpm.

To help retain the sporty characteristics of the full-fat GTi, the GT has been enhanced with an amplified engine note, as well as a more responsive transmission, firmer power steering and a sharper throttle response.

For the first time on a Peugeot

in Australia, the 308 GT is mated to an eight-speed Aisin automatic transmission. It also features a petrol particulate filter (see page 19).

Combined with automatic engine idle-stop technology, the GT achieves a combined fuel consumption figure of 6.0 litres per 100km, while emitting 135 grams of CO2 per kilometre.

Stopping power is helped by enhanced 330mm front/268mm rear disc brakes with floating callipers, while the GT features a more menacing stance than regular 308 models with a ride height that has been reduced by 7mm at the front and 10mm at the rear, to go with stiffer spring and damper rates.

FULL STORY: CLICK HEREPug cleans up – page 19

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Page 9: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

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By ROBBIE WALLIS

MAZDA has solidified its status as one of Australia’s best brands for aftersales service with its fourth consecutive win in the JD Power Australia Customer Service Index (CSI) study.

While many of the leading brands underneath Mazda have changed position compared to 2018, all recorded an increase in their respective satisfaction score by an average of 24 points in the study, which ranks the satisfaction levels of new-vehicle customers using a 1000-point scale.

Mazda increased its satisfaction score by 30 points from 789 to 819, well above the industry average of 788 but below its 2017 figure of 835 points.

Meanwhile, Audi has come out on top among the major luxury brands,

dethroning Mercedes-Benz which topped the rankings last year.

But in contrast to the mainstream brands, the industry average among the luxury marques dipped from 821 to 798 points.

For the mass-market players, the top two positions remained the same as last year, with Toyota finishing second with a satisfaction score of 799, up 16 points year-on-year.

Honda saw a big rise from eighth in 2018 to finish in third place, with a score increase of 43 points – the second-largest increase among the major brands.

Coming in fourth at 790 points was Hyundai, which moved up one place over 2018 with a 21-point increase.

Subaru (789) and Ford (788) claimed fifth and sixth place respectively, with the Japanese brand climbing from seventh place and

the Blue Oval seeing a significant rise from 10th place with a 42-point improvement in its satisfaction score.

The first of the manufacturers to finish below the industry average was Nissan (783), which dropped from third place to seventh with only a modest four-point increase, while Volkswagen climbed two spots to finish eighth, with the largest score improvement, up 46 points to 781.

The biggest loser from the 2019 results was Suzuki (777), dropping five positions from fourth to ninth

with only a five-point increase, while Holden’s difficulties in the marketplace continued with a four-place drop – with 770 points – to round out the top 10.

Jeep (769) finished in 11th place, however due to an insufficient sample size in 2018 it could not be compared year-on-year.

Bringing up the rear was Kia (766), which dropped three places to 12th, and Mitsubishi (761), which claimed the dubious honour of finishing in last place for the second consecutive year, despite a fourth-place finish in 2017.

In luxury terms, Audi climbed from second place to be the only major luxury brand to finish above the industry average, leading

the way with 802 points, despite dropping 28 points year-on-year.

Both Mercedes-Benz and BMW finished below the 798-point average, with Benz recording a score of 796 and BMW remaining third at 790 points.

According to JD Power, factors that had the greatest influence on satisfaction score included being immediately attended to during a service, leaving a customer’s vehicle settings and controls unchanged, informing customers of upcoming service schedules and getting service and repair work right the first time, without having to return to the dealer.

FULL STORY, GRAPHS: CLICK HERE

JD CSI results in

Mazda on top again among mass-market brandsand Audi the luxury leader in JD Power CSI study

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Page 10: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 10 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By ROBBIE WALLIS

FRENCH hypercar manufacturer Bugatti has paid homage to its EB110 coupe from the 1990s with the reveal of the super-exclusive Centodieci, which will be produced in a limited run of just 10 units.

Revealed at the Pebble Beach Concours d’Elegance, the Centodieci’s exclusivity is matched by its pricetag, with Bugatti asking €8 million ($A13.087m) for the right to own one.

The huge asking price has not been a deterrent, however, as all 10 units have already been spoken for.

As well as drawing inspiration from the EB110, the Centodieci

(Italian for 110) has also been made to celebrate the company’s 110th anniversary.

The Centodieci’s styling reflects a modern interpretation of the EB110, with Bugatti head designer Achim Anscheidt saying there were a number of difficulties in designing such a vehicle.

“We faced a number of technical challenges in terms of the development and design of the Centodieci,” he said.

“Transporting this classic look into the new millennium without copying it was technically complex, to say the least.

“We had to create a new way of

combining the complex aerothermal requirements of the underlying Chiron technology with a completely different aesthetic appearance.”

Like the EB110, the Centodieci features a radiator grille with a shrunken horseshoe design in the centre, flanked by horizontally louvred side intakes that give the vehicle a low, forward-slanting look.

While the EB110 features squared-off headlights, the Centodieci

features thin, narrow headlights with integrated LED daytime running lights that sit beside an aerodynamic line that runs through to the engine’s air intakes on the car’s flanks.

The air inserts have been divided into five smaller circular inlets on each side of the vehicle like in the EB110 SS, providing a different interpretation to the Chiron’s wave-like side profile.

Bugatti has also blacked out the A-pillar to help give the Centodieci

a low-slung look, complemented by the black-and-white front splitter and side skirts, and large alloy wheels.

At the rear, the EB110’s oval-shaped tail-lights have been replaced by an LED strip motif that evokes the design of the original, with rounded edges and LED strips across the centre, mirroring the EB110’s rear air outlets.

FULL STORY: CLICK HERE

Out of reach

Bugatti reveals Centodieci hypercar, with all 10units spoken for – at more than $13 million each

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Page 11: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 11 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By ROBBIE WALLIS

MASERATI Australia and roadside assistance provider Digicall Assist have teamed up to develop what is billed as a world-first roadside assistance app that provides multilingual options for n o n - E n g l i s h - s p e a k i n g customers.

Launching this week, the app will allow certain non-English-speaking Maserati customers to request roadside assistance in their own native language.

The app will first be available in Simple Chinese and Italian to mirror the most common bilingual Maserati customers in Australia.

In the event of an emergency, the

app asks customers a number of questions related to the problem to help determine what assistance is required and will ask them to take photos of the issue, which will then

be sent to Digicall Assist’s team.

Using the app sends the geolocation of the vehicle to Digicall Assist, preventing the need to try to work out where customers are in an unfamiliar environment.

Once the assistance request has been made through the app, the user is patched through on the phone to one of Digicall Assist’s representatives, who may not necessarily be able to speak the language but will have the information needed to begin the

process of sending assistance to the customer.

The app comes at no cost to customers and can be used by owners of second-hand vehicles providing the roadside assistance is still valid. The app works for all Maserati models.

Maserati Australia COO Glen Sealey said the idea was a partnership between the Italian brand and Digicall Assist, and was an initiative born from a desire to

provide a personalised experience for customers.

“It’s certainly something that we’ve always wanted to do. Maserati is a bespoke brand and in that regard we do pride ourselves in terms of the amount of personalisation you can do with the car, and it makes sense to then personalise where possible other aspects of the car,” he said.

“So, with the infotainment system you can specify your language, it

makes sense then from a roadside perspective that you should be able to do that as best as we can there, as well.

“We do have a portion of our market that is certainly bilingual at the very least, whether it’s from continental Europe or from Asia, so while it’s picking up the Chinese languages first, we will soon roll out other languages as well.”

FULL STORY: CLICK HERE

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Page 12: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 12 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By ROBBIE WALLIS

PORSCHE Cars Australia has announced pricing for the range-topping variant of its Cayenne large SUV, with the Turbo S E-Hybrid priced from $288,000 plus on-road costs in wagon form and $292,700 in coupe guise.

Arriving in local showrooms in the fourth quarter, the Turbo S E-Hybrid twins are $46,400 and $39,100 dearer than the Turbo version of the Cayenne wagon and coupe respectively.

For the Cayenne Turbo S E-Hybrid, Porsche has borrowed the

same powertrain from the Panamera Turbo S E-Hybrid – a plug-in hybrid set-up that teams the Turbo’s 404kW 4.0-litre twin-turbo V8 with a 100kW electric motor that increases power output to a heady 500kW.

The 500kW figure outstrips the likes of the Mercedes-AMG GLE63

S (430kW), Maserati Levante Trofeo (441kW), Range Rover Sport SVR (423kW), Lamborghini

Urus (478kW), BMW X5 M (423kW) and Bentley Bentayga W12 (447kW), but falls short of the Jeep Grand Cherokee Trackhawk and its 522kW 6.2-litre supercharged V8.

At 900Nm, torque is also up 50Nm over the Panamera and 130Nm over the Cayenne Turbo’s 770Nm, with the Turbo S E-Hybrid’s torque output only matched by the Audi SQ7 and its turbocharged diesel V8.

In the Turbo S E-Hybrid, power is channelled to all four wheels via an eight-speed automatic transmission, allowing for a 0-100km/h sprint time of 3.8 seconds on the way to a top speed of 295km/h.

The Turbo S E-Hybrid uses a

14.1kWh lithium-ion battery that allows a pure-electric driving range of 40km and enables the Cayenne to travel up to 135km/h on zero-emissions power.

Charging the battery takes 2.4 hours when using a 400-volt connection and 16-amp fuse, while using a 230V/10-amp household socket takes six hours.

Befitting its status as a top-spec model, the Turbo S E-Hybrid scores a number of performance-oriented

features such as Porsche Dynamic Chassis Control (PDCC) active roll stabilisation, Porsche Torque Vectoring Plus, a rear-axle differential lock, carbon-ceramic brakes, Power Steering Plus, Sport Chrono package, three-chamber air suspension with Porsche Active Suspension Management (PASM) and, on the wagon, 21-inch alloy wheels with body-coloured wheelarch extensions.

FULL STORY: CLICK HERE

Porsche’s potent new Cayenne Turbo S E-Hybridtwins due in fourth quarter, priced from $288K

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Page 13: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 13 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By JUSTIN HILLIARD

BMW Group Australia will add a third body style to its reborn 8 Series line-up in the fourth quarter of this year, with two variants of the four-door Gran Coupe to be offered at launch.

Just like its two-door coupe and convertible siblings, the petrol-only Gran Coupe will be available in entry-level 840i and flagship M850i form, priced from $199,900 and $272,900 plus on-road costs respectively.

This makes the four-door Gran Coupe the most affordable body style in the 8 Series range, undercutting

the two-door coupe by $3000, while the 840i and M850i are $17,000 and $12,000 more expensive respectively in convertible guise.

The rear-wheel-drive 840i is motivated by a 3.0-litre single-turbo

inline six-cylinder engine that produces 250kW of power and 500Nm of torque, while

the all-wheel-drive M850i ups the ante with a 4.4-litre twin-turbo V8 that punches out 390kW and 750Nm.

Both variants are mated to an eight-speed torque-converter automatic transmission (with paddle-shifters), with the 840i

sprinting from standstill to 100km/h in 5.2 seconds in Gran Coupe form, while its M850i counterpart blitzes the triple-digit run in 3.9s.

Both marks are 0.2s behind the regular coupes.

Standard equipment in the 840i includes rear-wheel steering, Adaptive M Suspension, an M Sport differential, the M Sport package, BMW Laserlight headlights, bi-colour 20-inch alloy wheels with a Y-spoke design, run-flat tyres,

M Sport brakes (including 374mm front discs), a panoramic sunroof, soft-close doors and a hands-free power-operated tailgate.

Inside, there is a 10.25-inch touchscreen infotainment system with gesture control, 16-speaker Harman Kardon sound system, 12.3-inch digital instrument cluster, windshield-projected head-up display, wireless smartphone charging, an M steering wheel, multifunctional front seats with heating and ventilation, power-

operated roller sunblinds, ambient lighting and extended Merino leather upholstery.

Advanced driver-assist systems extend to autonomous emergency braking, lane-keep and steering assist, blind-spot monitoring, cross-traffic alert, adaptive cruise control, park assist and front and rear parking sensors.

FULL STORY: CLICK HEREMore reports – next page

Gran stand

BMW stretches 8 Series with new Gran Coupe,but sends opening price below $200,000

PRICING:840i (a) $199,900M850i (a) $272,900

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Page 14: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 14 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By ROBBIE WALLIS

BMW Group Australia has announced it is offering driveaway pricing for its M240i Coupe, which when combined with an increase in specification, makes for a significant discount.

Arriving in the fourth quarter, the M240i Coupe now comes in at $74,900 driveaway, having previously been offered from $79,100 plus on-road costs.

This makes for a $5000 discount, not counting the extra charges associated with getting the car out of the dealership.

Along with the cut in pricing, BMW has added extra specification such as Jet Black bi-colour or matte Cerium Grey 18-inch M alloy wheels with a double-spoke design, hexagonal Alcantara and black anthracite upholstery, aluminium

hexagon trim with black high-gloss highlights, a power-operated glass sunroof, metallic paint and wireless smartphone charging.

This is in addition to standard specification including adaptive M suspension, M Sport brakes, variable sports steering, sports seats, power-adjustable front seats with heating, adaptive LED headlights, an 8.8-inch infotainment system, a 12-speaker Harman Kardon sound system, keyless entry/start and ConnectedDrive services.

FULL STORY: CLICK HERE

M240i boost

BMW bolsters M Performance 2 Series Coupe with driveaway pricing, higher spec as M2 Pure exits

By ROBBIE WALLIS

BMW Group Australia has introduced some minor increases to standard specification in its 5 Series and 6 Series GT ranges alongside small price rises, while other changes have been made to the German prestige brand’s X SUV line-up.

All variants of the 5 Series, 5 Series Touring and 6 Series GT have increased in price by $1000, with the exception of the M5 super-sedan which has seen a $5000 bump.

Along with the increases, the 6 Series GT range has been reduced from three variants to two, with the removal of the $151,400 top-spec six-cylinder 640i xDrive.

To justify the increases in price, BMW has added a few features to the 5 and 6 Series line-ups, starting with the BMW Live Cockpit Professional system which makes a 12.3-inch digital instrument cluster

standard across each range.Live Cockpit Professional also

includes other features such as an equally-sized infotainment screen with BMW’s latest operating system, advanced sat-nav system, a 20GB hard-drive multimedia system, two USB ports, news and weather apps, and Intelligent Emergency Call which automatically notifies emergency services in case of a crash.

Connected Package Professional has also been made standard, which includes BMW Intelligent Personal Assistant voice control, concierge services, remote services, remote 3D view and the BMW Connected app.

Lastly, wireless smartphone

charging has also been made standard across the range.

Along with the upgrades to the 5 and 6 Series, BMW has also adjusted pricing of a number of its SUV model ranges. However, unlike the sedan versions, there are no apparent increases to specification.

Starting with the X2 small coupe-SUV range, all variants bar the M-fettled M35i xDrive have seen an increase of $500, starting with the sDrive18i at $47,400 and topping out at $60,400 for the xDrive20d.

The X5 large SUV range, which first launched locally late last year, has seen an increase, with the 30d and 40i both going up by $5000, to $117,900 and $120,900 respectively, while the top-spec M50d has increased by $2000, to $151,900.

FULL STORY: CLICK HERE

PRICING, SPEC RISE FOR 5 SERIES, 6 GT AMID VARIOUS TWEAKS TO BMW RANGE

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Page 15: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 15 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By RON HAMMERTON

THE dream of owning a Mercedes-AMG excitement machine just became a little more realistic for many fans with the announcement that the Affalterbach company’s first entry-level A35 4Matic will be priced from $67,200 plus on-road costs for the hatchback version when it hits showrooms next month.

Customers will pay a $2600 premium for the A35 sedan that arrives in October, a few months ahead of the more potent new-generation A45 S hatch that is yet to be publicly priced.

The sticker price of the A35 is more than $11,000 below the price of the previous cheapest AMG offering, the superseded Mercedes-AMG A45 4Matic, making the A35 easily the most

affordable AMG-enhanced Benz offered in Australia.

A35 owners will have to make do with 225kW of power and 400Nm

of torque from the turbocharged 2.0-litre four-cylinder engine – 85kW and 100Nm less

than the 310kW and 500Nm of the wild new A45 in its hottest S guise, which is the most powerful four-cylinder series-production vehicle in the world and the only A45 variant destined for Australia.

While the A45 S gets a new eight-speed dual-clutch transmission, the A35 retains the previous generation’s seven-speed unit.

It does get the 4Matic all-wheel-drive system, however, which helps it to bolt from zero to 100km/h in 4.7 seconds – 0.8s behind the A45 S.

The A35’s primary target will be Audi’s S3 that currently has

less power and torque – 213kW and 380Nm – but more affordable pricing at $64,200 for the Sportback and $65,800 for the sedan.

In Australia, the A35 will come standard with AMG’s Ride Control adaptive damping suspension with

three modes, from comfort to sporty.As well, the A35 will have

five driving modes to adjust transmission, steering, suspension and other systems to occasion and taste.

The A35’s handling is further

enhanced via AMG Dynamics – a system that employs the electronic stability control system by, for example, braking the inside wheel during cornering.

FULL STORY: CLICK HERE

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Hot Mercedes A35 small car chops more than $11K off the AMG price of entry, from $67,200

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Page 16: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 16 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By ROBBIE WALLIS

AUDI has reshuffled pricing and specification for the 45 TFSI quattro variants of its mid-sized A5 range, introducing a claimed $9000 worth of extra equipment while dropping the price by $2800.

The price of the A5 45 TFSI Coupe and Sportback has dropped from $81,700 plus on-roads to $78,900, while the Cabriolet version has come down from $95,200 to $92,400.

The 40 TFSI variants carry over unchanged at $70,100 and $83,600 for the hard-top and soft-top versions respectively.

Along with the price changes, a number of equipment changes have been introduced. Inclusions are the S-line exterior package, 19-inch alloy wheels, memory function for the driver’s seat and side mirrors, phone box light with wireless

charging, heated front seats and dual USB outlets for rear passengers.

Extra safety equipment has also been included, with active lane assist, high-beam assist, adaptive cruise control with traffic-jam assist, park assist and a surround-view camera now standard.

No changes have been made to the 45 TFSI powertrain, a 2.0-litre turbo-petrol four-cylinder unit developing 185kW/370Nm and driving all four wheels via a seven-speed dual-clutch automatic transmission and Audi’s quattro all-wheel-drive system.

FULL STORY: CLICK HERE

A5 value play

Lower pricing, higher specification for Audi A545 TFSI quattro variants, now from $78,900

By RON HAMMERTON

AUDI has started its teaser campaign for what appears to be its new-generation RS6 Avant by sending this dusky image to members of its Audi Sport drivers club with an invitation to a private preview of this vehicle and probably more in Berlin just days before next month’s Frankfurt motor show.

Posted on Facebook, the image gives just enough clues to suggest the performance flagship version of the latest A6 Avant is just around the corner.

The high tailgate, humped rear fenders and striped tail-lights

resembling the LED lights from the recently launched S6 Avant point to the new flagship that is expected to be one of six RS models coming from the Ingolstadt company this year.

Another of the impending new models – a large sports coupe with a hefty spoiler at the back – is shown on the Audi website page with details of the event at the Audi City Berlin dealership on

September 5 and 6.Translated from German, the

invitation reads: “Exclusively for you as a member of the Audi Sport drivers club, we offer you a vehicle presentation of a special kind in an exceptional atmosphere.

“The Audi City Berlin offers an excellent platform to introduce you to the new spearhead of Audi Sport in the upper class in closed society. Just a few days before the start of the International Motor Show (IAA) in Frankfurt, experience the presentation of a high-performance avant-garde.”

FULL STORY: CLICK HERE

AUDI TEASES NEXT RS6 AVANT AHEAD OF BERLIN PREVIEW AND FRANKFURT SHOW

PRICING:45 TFSI Sportback (a) $78,90045 TFSI Coupe (a) $78,90045 TFSI Cabriolet (a) $92,400

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Page 17: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019GoAutoNews

PAGE 17 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By NEIL DOWLING

BUOYED by a meteoric sales increase, MG Motor Australia has outlined its next step into all-electric and hybrid vehicles and is now evaluating models from parent SAIC Motor.

MG’s sales are up 253 per cent to the end of July, to 4420 units, placing it ahead of the likes of Skoda, Volvo, Jeep and sister brand LDV. It sold 702 units last month, up 150 per cent over the corresponding period in 2018.

Now MG Motor Australia is in the midst of planning its next steps with the all-new HS – which replaces the existing GS mid-size SUV and is due here in the first quarter of next year – before embarking on

electrification.Potentially following the HS is a

replacement for the MG6 – a Mazda3 and Toyota Corolla rival that spent two years on the Australian market before being pulled due to poor sales – which is now available in

eMG6 plug-in hybrid form.MG Motor Australia sales

and network director Scott McIntyre told GoAuto that the combustion-engined MG6 will not return to the Australian market, with an all-electric or plug-in hybrid

version in line as the successor.“It’s now under evaluation and

that’s where we are at the moment,” he said. “We are looking at the market for both the EV and hybrid version to gauge demand.”

MG sister brand Roewe’s all-

wheel-drive large SUV, the all-electric Marvel X, is not being considered for Australia as it is yet to be made available in right-hand drive.

“At the moment, we are not looking at the Roewe Marvel X for this region,” Mr McIntyre said. “But should the product be able to meet the standards that Australian consumers expect, then it would be under consideration. It would be an exciting car for us.”

At the international reveal of MG products in Shanghai in April this year, SAIC representatives said technical development for MG and Roewe was similar.

FULL STORY: CLICK HEREMG hits top 20 – page 24

MG plugs in

New eMG6 on radar for Australia, along with eZS and other plug-in hybrid and all-electric models

By JUSTIN HILLIARD

CHINESE-OWNED British brand MG has moved into the hot mid-size ute segment, unveiling its all-new Extender in Thailand this month where it will be produced in right-hand drive for local – and possibly regional – consumption.

However, MG Motor Australia has confirmed to GoAuto that it has no plans to bring the model here to expand its burgeoning line-up, despite the fact that the pick-up segment accounts for almost 20 per cent of the entire local new-vehicle market.

“We are aware that the MG Extender ute has been launched in Thailand this past week, however this product is not on our agenda now or in the foreseeable future,” a spokesperson said.

The two best-selling models in Australia this year are utes, with the Toyota HiLux (29,491 units)

and Ford Ranger (24,664) together accounting for 8.5 per cent of the total market to the end of July, so the Extender’s volume potential remains strong.

But the MG ute is based heavily on another relatively recent arrival in the segment, LDV’s T60, which could be a factor in any decision to offer the MG version here.

This is due to both MG and LDV being owned by SAIC Motor, with LDV distributed in Australia by the independent Ateco Group while the MG operation is run through the factory.

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EDITION 987 - AUG 21, 2019

PAGE 18

GoAutoNewsMarket Insight

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By ROBBIE WALLIS

A REPORT by the federal bureau of infrastructure, transport and regional economics (BITRE) has concluded that 50 per cent of new-vehicle sales in Australia could be made up of electric vehicles by 2035.

Despite the anticipated rise in popularity of EVs, the study still claims that local uptake will lag far behind other markets around the world, including Germany, Canada and the Netherlands, among others.

Currently, Australia’s take-up of EVs tracks at less than one per cent.

However, the industry is expected to hit 10 per cent by 2026, rising to 20 per cent by the end of next decade, 30 per cent by 2031 and 40 per cent by 2033. The report suggests that by 2040, 60 per cent of all new-vehicle sales will be EVs.

Electric Vehicle Council CEO Behyad Jafari said the results of the study helped clear up some confusion around EV take-up in Australia, despite the federal government’s lack of policy and incentives for EV ownership.

“There was a lot of misinformation in the media during the federal

election about Australia’s transition to electric vehicles, but what these new government figures show is that even on a business-as-usual basis, 50 per cent of new vehicles sold domestically will be electric by 2035,” he said.

“The underlying factors driving a transition to electric are irresistible. The government’s modelling shows Australia will get there eventually no matter what – the choice we face is whether we move ahead of the curve or lag behind.”

Interestingly, the report estimates that the percentage of overall EV sales in Australia will rise above the global average from around 2035 onwards.

The report describes the modelling of EV uptake across 22 countries around the world and uses a number of factors and estimates to come to its conclusions.

Factors such as battery price in dollars per kilowatt-hour, purchasing and running costs of EVs compared to fossil-fuel vehicles, and the planned addition or removal of subsidies are used to determine the cost ratio of electric versus combustion-engine vehicles, and the predicted take-up of EVs in

various countries.The modelling forecasts downturns

in countries such as the US and Belgium in coming years, as subsidies are planned to be cut in future.

The report claims that it is important for policy-makers to

understand the predicted speed of EV uptake in countries for reasons such as planning levels and timing of subsidy programs, the allotment of tax dollars for EV programs against infrastructure funding, and determining the demand of the

electricity supply.Mr Jafari said he would like to see

Australia embrace EVs at a faster rate, in order to match the demand in other countries.

FULL STORY: CLICK HERE

The EV revolution is coming, it’s just a matter ofhow quickly, as new study crunches the numbers

Ready or not

GoAuto Market Insight brought to you by Op2ma

Global and Australian predicted EV sales as percentage of total market70

60

50

40

30

20

10

0

2009

2011

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

2039

2041

2043

2045

2047

2049

Global Australia

EV%

of s

ales

Source: BITRE

Page 19: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

EDITION 987 - AUG 21, 2019

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By RON HAMMERTON

PEUGEOT will become the first car manufacturer to introduce soot-busting particulate filters in petrol passenger cars in Australia after coming up with technology to beat the high-sulphur fuel sold Down Under.

Petrol particulate filters (PPFs) will be fitted to the exhaust systems of the 1.6-litre direct-injection turbo-petrol engine to be shared by the new Peugeot 308 GT hatch and 508 GT Fastback and Sportwagon when they are rolled out across Australia over the next few weeks.

Car manufacturers have been reluctant to fit such filters to their vehicles sold in Australia because of the low-quality local fuel that, in basic

91RON form, has a sulphur content of 150 parts per million – 15 times higher than similar fuels in Europe.

Manufacturers and their peak body, the Federal Chamber of Automotive Industries (FCAI), have been lobbying the federal government since 2015 to mandate low-sulphur fuels to enable them to introduce cleaner engines.

Now Peugeot is going ahead regardless, saying its new close-coupled PPFs can cope with Australian higher-octane 95RON and 98RON fuels with up to 40ppm of sulphur.

Peugeot Australia managing director Ben Farlow said the decision to add PPFs to the 308

GT and 508 GT meant Australian Peugeot customers would get access to arguably the cleanest petrol drivetrains available in Australia.

“With the substantive amount of testing and development that has gone into our system, we believe that our moves will be followed by others in the near future,” he said.

Mr Farlow added: “With the government mandating the current fuel standards well beyond mid-next decade, the time for debate is over. We just have to get on with the task of developing and offering efficient and exciting vehicles.”

Peugeot began fitting PPFs to its direct-injection vehicles in Europe in 2017.

Particulate filters have been fitted to diesel engines for some years in Australia to cut the high levels of carcinogenic soot emitted through the exhaust.

FULL STORY: CLICK HERE

New Peugeot 308 GT and 508 GT to pioneerpetrol particulate filters in Australia

Pug cleans up

PICK-UP TRUCK AMONG FISKER’S AMBITIOUS EV PLANS

By ROBBIE WALLIS

NICHE American EV marque Fisker Automotive has taken to Twitter to announce two new models to be built on the same platform, including what looks to be an all-electric pick-up truck.

Chairman and CEO Henrik Fisker announced that the company’s next two models to come after its planned SUV will be built on the same platform, claiming that “all automotive segments have to be electrified”.

The announcement was accompanied by a rear-facing shot of a pick-up with ‘Fisker’ emblazoned across the tailgate.

No timeline has been given for the release of the pick-up, however fans should not hold their breath as none of Fisker’s recently planned models, including the eMotion sedan, have yet to materialise.

The electric SUV is currently scheduled for release in the second half of 2021, so any EV pick-up would arrive after that.

Earlier this month, Fisker also teased a new feature for the upcoming SUV, called the ‘California package’, which will allow for open-top driving without the use of a soft-top roof, suggesting some sort of folding hard-top mechanism.

Along with the California package teaser, Fisker announced it was aiming to release an entry-level variant of the SUV priced below $US40,000 ($A58,892).

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EDITION 987 - AUG 21, 2019

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By TERRY MARTIN

FORD Australia has announced the appointment of Matt Moran as communications director, replacing Martin Gunsberg who is relocating to the Blue Oval brand’s headquarters in Dearborn, Michigan, to take up a new global role as manager of mobility communications.

Ford’s changes at the head of its communications department are among several senior moves in automotive public relations to be made in recent weeks, spanning a variety brands including BMW, Lexus, Ateco Group (covering Maserati, Ram and LDV), Mazda and Porsche.

Officially starting on August 19, Mr Moran is a Melburnian who has relocated from Shanghai, China, where most recently he was director of regional news for Ford across the Asia-Pacific region.

Not to be confused with the celebrity chef who bears the same name, Mr Moran has spent more than five years working for Ford throughout the region, the past three in Shanghai where he also served as enterprise communications manager

and international media relations lead for Asia-Pacific and China, and another two in Bangkok, Thailand,

as communications manager for Malaysia and Asia-Pacific emerging markets.

He earlier worked as a freelance journalist after five years in PR with

consultancies including Hill and Knowlton and Buchan.

In the new role, Mr Moran will report directly to Ford Australia and New Zealand president and CEO Kay Hart and Ford’s Shanghai-based International Markets

Group vice-president of communications Lori Arpin.

Ford says that Mr Gunsberg’s new role in Detroit will see him lead the communications strategy and implementation of Ford’s mobility efforts

worldwide.Over at BMW Group Australia,

Nick Raman has been appointed product communications manager, replacing Adam Davis who left at the end of June to focus on his charity Drive Against Depression.

Mr Raman was previously public relations manager for Lexus

Australia, a position he held for three years after working for Toyota/Lexus public relations agency The Project Group.

He is also a former senior manager of corporate communications for Fiat Chrysler Automobiles (FCA) Australia, and earlier in his career

spent several years in journalism/editing with ACP magazines.

He now reports to BMW Group Australia’s general manager of

corporate communications Leanne Blanckenberg, while a replacement for him at Lexus Australia is still to be announced.

At Ateco, former Volvo Car Australia senior executive Oliver Peagam has joined the independent distributor as group public relations consultant, looking after PR for Maserati,

LDV, Ram Trucks Australia and the wider Ateco Group.

He replaces Edward Rowe in the role and comes to the position after almost two years as head of automotive at Fairfax Media/Nine Entertainment Corporation.

Prior to that, Mr Peagam spent about six years with Volvo Car Australia, starting as public affairs manager before rising to marketing director about 18 months after joining the

Swedish prestige brand early in 2012.

Mr Peagam had previously worked for more than three years as marketing communications manager with Skoda Australia and, like Mr Raman, earlier had a stint with The Project Group and the Bauer Media/ACP Magazines stable.

He also has many years’

experience working in England on motoring and motorsport titles.

At Mazda, former GM Holden senior manager of product and brand communications Mark Flintoft will sign on in early September in the temporary role of senior manager of public relations and corporate

communications as Sonia Singh takes maternity leave.

Mr Flintoft has spent the past year as head of communications for Melbourne City Football Club. He previously spent four years with Holden,

joining as product communications manager before being elevated to senior manager.

Before working at Holden, Mr Flintoft spent three years with Jaguar Land Rover in his native UK in a variety of brand, marketing and PR roles.

FULL STORY: CLICK HERE

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By ROBBIE WALLIS

ROLLS-ROYCE is giving its Ghost limousine a super-exclusive farewell with the announcement of the Zenith Collector’s Edition, which will see off the current model after a decade-long production run.

Available in a global run of just 50 units, the special edition will feature “the highest levels of bespoke ever seen on a Ghost Collection car”, according to the British luxury marque, with a number of enhancements that set it apart.

A spokesperson for Rolls-Royce Asia-Pacific told GoAuto that the Ghost Zenith Collection has not yet been confirmed for Australia, however there is a precedent with the

swansong Phantom VII Zenith model being ordered in the past as well as other limited-run models including the Wraith Eagle VIII, Private Jet Ghost and Wraith Adamas.

If it does make it here, the Zenith Collection should fetch a sizeable premium over the standard Ghost, which currently retails for $595,000 driveaway for the standard wheelbase and $675,000 for the extended wheelbase.

The Zenith Collector’s Edition draws inspiration from the 2009 200EX concept on which the current Ghost was based, as well as the original 1907 Silver Ghost.

Customisation begins with a commemorative ingot set in the

car’s centre console and engraved with the vehicle’s build number, with the ingot crafted from smelted-down metal sourced from the Spirit of Ecstasy emblem on the 200EX.

The Ghost’s door sills, analogue cabin clock and Spirit of Ecstasy hood ornament have all been engraved with ‘Ghost Zenith Collection’ lettering, while the centre console features a complex engraving with a large piece of artwork divided into 50 pieces and

set in each of the 50 Ghosts, giving every example a unique touch.

Continuing the bespoke interior theme, a unique triangular marquetry pattern created by Rolls-Royce’s woodshop is available for the door trim, offered in either wood, technical fibre or piano-finished veneer.

Ambient interior lighting is also embedded behind the perforated leather door trim for added effect, while Rolls-Royce’s famous

‘starlight’ headliner takes on a new look for short-wheelbase versions, with a ‘Shooting Star’ configuration that makes use of 1340 individually mapped and handwoven fibre-optic lights.

In the extended wheelbase, the headliner features a lined pattern that thrusts forward through the cabin towards the Spirit of Ecstasy ornament.

FULL STORY: CLICK HERE

Rolls-Royce farewells current Ghost sedanwith swansong Zenith Collector’s Edition

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By JOHN MELLOR LEGAL advice sought by the Victorian Automobile Chamber of Commerce (VACC) makes it clear that under the recently beefed-up Australian Consumer Law (ACL) a car with an unrectified recall notice in force cannot be sold to a consumer until it is fixed.

Nor can it, according to the advice, be legally wholesaled to trade customers, meaning that dealers must attend to recall notices before on-selling a vehicle to them.

The advice, by Evan Stents, lead partner of the automotive industry group at HWL Ebsworth Lawyers, was sought by the VACC on behalf of the Victorian Automobile Dealers Association (VADA), whose members had sought clarity on their responsibilities under both compulsory and voluntary recalls.

VADA asked:• whether a product (such as a car)

that is subject to a recall can be sold to a consumer; and

• whether a product (such as a car) can have a wholesale sale to a wholesaler or trade buyer.

Mr Stents made it clear that the law turned not on whether the recall was voluntary or compulsory; it turned on the fact that the car was subject to a recall notice in force, carrying a known fault acknowledged by its maker and that selling the car subject to a recall notice in force without rectifying that fault with that unrectified fault was a breach of the ACL.

Mr Stents said dealers had no choice but to get the recall action fixed before they sold the car.

“If the car cannot be fixed, it cannot be sold,” he said.

VACC industry policy adviser Michael McKenna said in a bulletin to members: “There have been many assumptions of vehicles on voluntary recalls not having a restriction to on-sell and that it is only compulsory recalls (eg Takata) that had any prohibition on sale.

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Continued from previous page

“Likewise, with the sale to trade customers, assumptions were aplenty regarding trading/supply of recall-affected vehicles.”

Mr Stents said: “The answer to your question is that a dealer cannot sell a vehicle that is subject to a recall notice – whether a retail sale to a customer or a wholesale sale to another dealer or to a trade buyer.

“It does not matter whether the sale is to a consumer or another dealer because section 127 of the ACL prohibits the ‘supply, in trade or commerce, of a consumer good’ in respect of which a recall notice is in force.

“A vehicle is a consumer good for the purposes of the ACL irrespective of whether it is purchased by a retail or wholesale buyer. Any sale by a dealer – whether a wholesale or retail sale – will be a supply in trade or commerce.

“Assuming there is a recall action that will result in the underlying defect or dangerous characteristic of a particular vehicle being fixed, the dealer can sell the vehicle once the recall action has been performed.

“If there is no available fix, then the vehicle cannot be sold.”

Mr McKenna told members: “You will note that the HWLE advice is not ambiguous in any regards.

“Simply put, there can be no retail sale of any product subject to a recall, be it B2B or business-to-consumer.

“It puts into perspective the enormity of the result achieved by VADA and others in having certain Takata airbag-affected cars declared as ‘future recall’ and not all as ‘active’. That would have been disastrous,” he said.

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By NEIL DOWLING MG MOTOR Australia has embarked on a more aggressive dealer and promotional campaign as it cements its position as a top-20 seller in Australia – a surprisingly quick rise to prominence that the company puts down to its historic name, a long warranty, value for money and an enthusiastic dealer network.

The Chinese-owned British brand is this year outselling the likes of Volvo, Skoda and Jeep, and is sitting just behind Renault.

In an exclusive interview with GoAutoNews Premium, MG Motor Australia marketing director Danny Lenartic said the

company’s success was attributed to “challenging the norm”.

“We have seen the way the Japanese and Koreans have done it, with a 30-year plan and roadmap to follow,” he said.

“Instead, we brought in people who would challenge current norms and ideals and processes. We also found a network that was enthusiastic about following that same path.

“Then we are being led by a company that has a strong focus on international business. Those factors combined are the reason why we have been so successful.”

MG has sold 4420 vehicles to the end of July this year, up 253 per cent on the same period in 2018, to edge

ahead of more established brands including Volvo (4386), Skoda (4159), Jeep (3366), Mini (1962) and Peugeot (1297).

It is also currently the top-selling Chinese marque ahead of LDV (3646), Haval (783) and Great Wall (788).

This has been a catalyst for dealership rooftop numbers recently clicking over to 42 and, as a follow-up, MG Motor will open its first factory-owned dealership in Sydney’s Alexandria later this year.

Further impetus comes from its sponsorship of the prominent TV series Australian Survivor, the National Basketball League (NBL) and, as part of a global arrangement, supporting the

Liverpool Football Club.MG Motor Australia sales and

network director Scott McIntyre said the dealership expansion had been “a considered approach”. It now has 39 dealers operating in 42 sales locations after this month opening two dealerships in Tasmania and three in New South Wales.

Ahead is the opening of its flagship showroom in Alexandria, which is now completing construction and marks a return for MG that had its Australian manufacturing plant in the adjoining suburb of Zetland from the 1950s through to 1972.

The Nuffield Australia factory started in 1950 and became BMC Australia and then Leyland Australia,

building BMC products including MG models. The MGA, Midget and MGB were built there until 1972. The factory, on a 23ha site, closed in 1975 following the withdrawal of the Leyland P76 from the market.

“It’s close to the Sydney CBD and is only a kilometre from where MG had its Australian manufacturing plant in the 1950s through to the 1970s. In essence, we are moving back to our home,” Mr McIntyre said.

“We are looking at a fourth-quarter opening for that dealership. The location is strong for the brand because it has become an eclectic centre for car brands and it will suit us very well.

Continued next page

Top-20 position for China’s newcomer based on dealers, value for money and the nameplate

MG hits top 20

MG3

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Continued from previous page

“Commercially, there’s more office space becoming available so it’s becoming quite a well-patronised centre. It is a Goodman-owned precinct and there are a lot of other businesses – including retail – that surround it and brings consumers in, especially over weekends.”

The new showroom is across the road from John Newell Mazda, down the road from City Ford and next door to Crunch Fitness Gym and furniture outlets Scali, Space and Natuzzi. As Mr McIntyre put it, “there’s a lot of activity in the area”.

Referring to dealer numbers, Mr McIntyre said: “The (MG) car parc is starting to grow and while customers (numbers) are growing, we are mindful of making it as convenient as possible for them.

“(Dealers are) at the right number now. For the future, we’ll evaluate it. The appointments of new dealers

will require them to understand the buying cycle of new-car customers and expectations. Based on that, we will review the dealers and new products.

“Our preference is for dealers who excel in the PMAs where they are based and have a strong CSI. Understanding the customer and the customer’s new-car journey is key to our appointments of dealers.”

Mr Lenartic said MG was in a growth stage and “no longer at start-up stage”.

“It’s critical that the dealer will want to come on the journey with us,” he said.

“Without that, I think it would be very difficult for them to help with the brand in the way that it has come in such a short space of time. So likeminded businesses are preferable so we can work together.”

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By NEIL DOWLING THE ability of Chinese-owned British brand MG to command sales from Australians in such numbers that already places it ahead of some well-established players and all other Chinese market entrants is being put down to enthusiasm for the brand and an understanding of its attributes.

MG Motor Australia sales and network director Scott McIntyre told GoAutoNews Premium: “We understand where we have come from.

“We understand (sales growth) is a combination of the MG heritage, the driveaway pricing, the seven-year

warranty and roadside assistance – all this plays into our sales,” he said.

“We need to make sure we continue to make the consumer aware of our products. We are still new to this but people are becoming more and more aware of us as a brand every day.

“I suppose we have been fortunate to have the MG brand and what I call a romantic and nostalgic attachment to it.

“When we speak to current dealers, prospective dealers and our customers, I don’t know why it happens but when we talk about MG they have a smile on their face. I haven’t seen that reaction for quite a

while when discussing other brands.“We know that we have a

fortunate position as custodians of the MG name and that we remember our heritage while having backing of SAIC globally to bring that UK brand into Australia. That’s the reason that has helped us a lot in the market with the current range.”

MG Motor Australia marketing director Danny Lenartic said he started with MG on its first day in Australia and was the seventh

employee in a company “with zero dealerships”.

“I see personnel come and go and the brand build, and the knowledge that these people bring to the table – such as Scott – has allowed us to think about ways to introduce the brand that perhaps other people hadn’t thought about,” he said.

Mr McIntyre pointed to the partnership with Macquarie Finance and the new MG-branded product as a very important step for the company.

“We have just launched the finance product and it’s early days,” he said.

“We continue to work within the team at Macquarie to further enhance the product. On the customer side, it makes it a lot easier for them to go into a dealer and have finance options to suit their needs and offers a turnkey solution for them. Customers already say the finance option is a positive.”

FULL STORY: CLICK HERE

Fast start for MG has many drivers

MG brand’s return to form in Australia under SAIC is putting a smile on everyone’s face

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By NEIL DOWLING STILLWELL Motor Group’s Brighton Jaguar and Land Rover dealership is on the move and is set to open its new million-dollar-plus renovated building about a kilometre down the Nepean Highway.

It moves from Melbourne’s Gardenvale to the new address at 363 Nepean Highway in Brighton East, where it will continue to serve the affluent bayside suburbs in Melbourne’s south.

Sales manager Matt Day said the newly refurbished building befits the status of the JLR products and, for the first time, puts sales, aftersales, parts and service in the one building.

“We will be very fortunate to be working with the nation’s best JLR service team at the new location,” Mr Day told GoAutoNews Premium.

The service centre for clients will move from its offsite location at nearby Cheltenham and will now operate under the same roof as sales.

Mr Day said this would make it a one-stop shop for customers.

The new building, owned by Stillwell Motor Group and vacated by Brighton BMW (which also recently moved to a newly built dealership further down the road), is bigger and more customer focused than the current showroom, he said.

The sales team has already moved into the new location, with service to follow in the coming days and then, in stages, used cars. The used-car operation will remain on the current site and move progressively within about six weeks.

FULL STORY: CLICK HERE

Brighton JLR moves

Major renovation puts sales and service under one roof for Stillwell’s JLR dealership

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By NEIL DOWLING BRITISH sportscar marque McLaren has opened the doors to its fourth showroom in Australia, with the Zagame-operated McLaren Adelaide to target the nation’s most avid city-based supercar buyers per capita.

Opening the dealership in the inner-city suburb of Frewville this month, the company said the city was chosen because McLaren had a large pre-existing base there.

Zagame Automotive Group marketing and public relations general manager Paul Ellis said many cars were sold to Adelaide customers from Zagame’s McLaren Melbourne.

“So we are servicing our existing market with OEM support as well

as looking to grow our McLaren customer base,” Mr Ellis told GoAutoNews Premium.

“In addition, Adelaide has real car enthusiasts. The percentage of take-up of high-performance cars in Adelaide is the highest per capita of all capital cities in Australia.

“For this reason, Adelaide McLaren customers get the opportunity to do some great things in their cars with us.

“We will be having track day at The Bend in early December as warm-up for our Zagame tour group in the Adelaide Motorsport Festival.

“Our cars are still covered under manufacturer warranty for track use so we do organise regular track

outings for our Adelaide customers of all our brands.”

McLaren Adelaide is headed by general manager Scott Greer, who comes to Zagame from Adelaide BMW and Ferrari.

The new showroom has sales, aftersales and service facilities and allows visitors to immerse themselves in the McLaren world. It also has approved pre-owned cars as part of the McLaren Qualified Programme.

McLaren Automotive Asia-

Pacific and China managing director George Biggs said at the official opening that Australia was one of the brand’s first international markets, selling its first car, the 12C.

“Since then, we have evolved with our award-winning range of sportscars and supercars, making Australia one of our most successful markets in the Asia-Pacific region,” Mr Biggs said.

“McLaren ownership in Australia represents an extraordinary

experience. Our owners participate in exclusive luxury events, curated driver’s programs and bespoke offerings through McLaren Special Operations division.

“Zagame Automotive has been a valued partner in the McLaren retailer network. It gives me great pleasure to be partnered with them on the expansion of the fourth retailer network in South Australia.”

FULL STORY: CLICK HERE

McLaren opens in Adelaide

Adelaide has the nation’s highest number of McLaren owners, plus The Bend racetrack

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By JOHN MELLOR THE organisers of this year’s AADA Convention, which runs from September 9-11 in Melbourne, have restructured the pricing and added special value events in a drive to attract more dealers and dealership management to the key industry forum.

To be held at the Melbourne Convention and Exhibition Centre, the newly restructured convention is particularly designed to increase the participation by local Victorian dealers.

The convention director, Patrick Tessier, told GoAutoNews Premium that he has made significant changes to the way the convention is organised.

“The first is that we have introduced an open day. So on the Monday (September 9) from 1.30pm

to 7.30pm anyone can go to the Expo trade display for free. They have to register but will not be charged.

“In my mind the Expo open day is really valuable for dealers in Victoria who might want to send their workshop manager in to look at equipment or their marketing manager to look at all the platforms that are available and they can do that without cost.

“So they need to register and then pick up their pass on the day.”

Mr Tessier said that he is holding more than 110 registrations for the Expo preview.

Another key change this year has been the introduction of a new delegate fee structure.

“We really want the dealers to bring their teams to the convention,” Mr Tessier said.

The price for delegates this year is $795 for the first delegate who is a AADA member dealer. This is the same as last year. But any delegate after that will pay $495, which is a 40 per cent discount for second or further delegates.

“So a dealer with four managers and himself can send that team to the convention for under $2100,” Mr Tessier said.

This year’s night program is a sales team event to be held on the

Monday evening (7pm to 8.30pm). It is designed to be a companion event to the convention in which dealers can bring their sales team without necessarily having to sign up for the complete convention package.

“So a dealer in Victoria who, for whatever reason, does not want to attend the actual convention, can send their sales team for $99 each or $79 each for a team of 10.

Mr Tessier said that unlike in previous years, this year they will not

have to be a delegate of the convention to attend the sales team event.

“So we have waived that requirement for that night program so that dealers can have their sales teams attend,” he said.

The sales team event will be run by international sales trainer Simon Bowkett who will address the question: ‘Is your sales team ready for 2020 and beyond?’

FULL STORY: CLICK HERE

For the first time, dealers can see Convention Expo trade display in special preview at no charge

Patrick Tessier

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Page 31: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

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By NEIL DOWLING THE car finance business conducted by dealers has plunged by up to 50 per cent, application approval times have more than doubled, new-vehicle sales are down eight per cent on 12 months ago and customers who fail the new finance scrutiny process are finding funds from less reputable lenders at much higher interest rates.

The results are frustrating for all parties involved, particularly given that one of the main reasons for all this risk-adverse regulation introduced by the Australian Securities and Investments Commission (ASIC) last year was to protect consumers from excessive loan interest rates.

The Australian Automotive Dealer Association (AADA) has told

GoAutoNews Premium that obtaining finance was becoming much harder than ever for customers as a fallout of the royal commission into banking.

AADA CEO James Voortman said it “has made financial institutions pretty risk adverse” and dealers –

and customers – were the losers.

The trigger for the ASIC action was the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry – aka the

Banking Royal Commission and the Hayne Royal Commission – that lasted 14 months before declaring its results in February this year.

ASIC commissioner John Price said in a speech in Melbourne on February 28 that ASIC was “committed to accelerating

enforcement activities, conducting more civil and criminal court actions against larger financial institutions and, as a starting point for all enforcement matters, asking the question, ‘Why not litigate?’”

Mr Voortman said: “Lenders are insisting on greater levels of scrutiny being applied to applications and we are having a situation where finance companies are insisting dealers have strict verification processes for income but also for consumer expenses.

“They are looking for information on things whether the applicant is spending a lot on dining out or if they have a Netflix account. It’s all having a massive effect,” he said.

“We have dealers telling us that about one quarter of their applications are being knocked back (by financial institutions) and in some instances, depending on the dealer, it can be as high as 50 per cent.

“You are also seeing a lot longer timeframes, so yes, it’s all having

a big effect. The timeframes for applications over the past year have probably gone from 24 hours where you could apply in the morning and get it turned around in 24 hours.

“Now it is around three days. It adds to the difficulty in the process.”

With customers facing being knocked back on a loan application, we asked Mr Voortman where he thought buyers went to get funds for a car.

Continued next page

AADA’s take on the credit crunch

ASIC’s ‘big stick’ is forcing buyers into hands of fringe lenders at higher interest rates: AADA

James Voortman

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Page 32: AUSTRALIA’S NO1 AUTOOTIE INDUSTR OURNAL EDITION 987 – … · vehicle sales in the state for July – the first full month of the tax – were down 8.5 per cent year-on-year, which

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Repurchase strategy falling short

The aim of guaranteed future value is to retain customers but it is not

working as well as it could

Continued from previous page “I think customers hold back.

There’s evidence from the sales numbers that they are holding back with cars being more reliable than ever before, plus the fact it’s a purchase that they can delay, they may just decide they don’t need to replace their current vehicle,” he said.

“There are other places where they can get finance. The dealers service about 33 per cent of the people who finance a car so there are other avenues. We can only speak for that one third of the market.

“There are concerns that the customers will go to a less credible, less reputable finance company and be charged a much higher interest rate.

“They probably won’t have access to the innovative finance products that the dealers are bringing to the market such as guaranteed future value and they won’t have the convenience of a one-stop shop solution which is attractive to many of the consumers who take up

finance at the dealership.”He said the evidence that many

potential buyers were holding back is seen in the car sales numbers. VFACTS figures show that to the end of July this year, sales are down 15.8 per cent for passenger cars and down 3.6 per cent for SUVs – a drop of 47,452 vehicles combined – and the flow-on effect has dented used-car business without the trade-ins that usually come with new-vehicle purchases.

Mr Voortman said the banking royal commission has frustrated the consumer.

“They have gone from an environment where they had a solid income and a system of expenses that led to them being able to obtain credit, to an environment where not much has changed in the income and expenses side, but they are being scrutinised to the extent that they can’t get that credit,” he said.

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By JOHN MELLOR TRANSPORT and logistics group Autocare Services is gearing up once more for its participation in this year’s i98FM Illawarra Convoy fundraiser which in 2018 involved more than 720 trucks and 965 motorcycles and raised $2 million for medical and welfare support in the local community.

i98FM’s annual Illawarra Convoy has been a much-anticipated community event on the Illawarra calendar since its inception in 2005 and a total of more than $13.4 million has been raised in the convoy’s 14-year history.

The event is the largest truck convoy in the southern hemisphere and one of the largest regional one-day fundraising events in Australia.

i98FM’s Illawarra Convoy has also received national recognition, winning 10 annual Australian Radio and Commercial Awards for Best Community Service Project.

In 2018, Autocare Services, which is part of LINX Cargo Care Group, raised more than $14,000 and this year is aiming to raise more than $20,000 for the Illawarra Community Foundation.

The Group CEO of LINX Cargo Care Group, Anthony Jones, told GoAutoNews Premium: “The i98FM Illawarra Convoy is an unbelievably worthy cause that the entire Illawarra community is behind. It is so important to give back to the community in which we operate. It is something the business

is very passionate about.“Two million dollars was raised

last year and Autocare was in the top 10 trucks that made up the convoy. It just shows how passionate we are in raising money for this unbelievable cause,” he said.

Mr Jones was talking at the handover of the initial $10,000 already raised by the transport group to the main organiser of the convoy.

As part of its fundraising effort this year, Autocare Services is hosting

various events, from barbecues, ‘pie day Friday’ and raffles, to help achieve generous donations. These are being held at its Port Kembla, Dapto and Ingleburn Autocare Services sites.

Transport operators and motorcycle firms vie for the rights to be the leading truck or motorcycle in the convoy by raising the most money.

Winning top spot for trucks last year saw a bid of $310,000 and leading the motorbikes in the

convoy was a winning amount of more than $90,000.

The convoy, to be run on Sunday, November 17, will travel 70km from Illawarra Coal’s West Cliff Colliery at Appin, through the streets of the Illawarra, to finish up at the Illawarra regional airport.

All funds raised by the event will go to the Illawarra Community Foundation.

FULL STORY: CLICK HERE

Convoy drives $2m Illawarra fundraiser

Autocare Services plays a community role in annual Illawarra Convoy

From left: Mark Rigby, Marty Haynes, Anthony Jones and Autocare Services team

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Reason #29VACC members gain access to apprentice mentors