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OUTLOOK EDITION 132

“In the little time we are given in this world we should leave it just a little better than it was when we started.” – Sid Crawford, 1948

“Always leave something on

the table for the next bloke.” – Jim Crawford, 1970

“One of CMV’s key values —

commitment to employees, customers and our wider community.”

– Michael, David and Paul Crawford, 2014

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On the inside cover of this Outlook are selected quotes from each of the fi rst three generations of Crawfords. Each of them has its own context, and each of them builds on the legacy we are trying to create; that is a business that seeks to continually improve itself, one that has the trust and respect of its customers and employees, and one that grows in a positive, constructive and sustainable way.

Importantly, along the way, we have had a lot of fun, hopefully never taking ourselves too seriously and always remaining optimistic about our prospects to grow and develop our company. We really hope you enjoy reading this special edition of Outlook.

Paul, Michael and David Crawford

MESSAGE FROM THE MANAGING DIRECTORS

To commemorate this, we’ve put our normal format “on hold” to focus briefl y on the fi rst 80 years of operation as a private, family owned and operated business. While we know that the real opportunities and challenges lie in front of us, we still believe there’s a lot to be learned from refl ecting back over our history. It has also helped us pay tribute to the thousands of employees who have played a role in shaping the company over the years. We have been assisted in this regard by writer Sally Collings who has written a précis of our fi rst 80 years in a journalistic style that tries not to “gild the lily”. In doing so, it deals openly with both our successes and our “not so successes”. But what is really at the heart of this special Outlook is our business philosophy, what we believe in and how we have tried to interact, with our employees, our customers, our suppliers and the wider community.

WELCOME TO A VERY SPECIAL EDITION OF OUTLOOK. THE 26TH OF FEBRUARY 2015 MARKS THE END OF OUR YEAR OF CELEBRATION FOR OUR 80TH YEAR IN BUSINESS.

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MESSAGE FROM THE CHAIRMAN

This special edition of Outlook is the last piece in our 80th anniversary celebrations. When you have looked through the magazine I think you will agree that the content is terrifi c. A great document to read, and a great way to close off the year.

Paul, Michael and David have written a very refl ective piece as a forward to this magazine. I think it is also important for me to comment on the past but also to talk a little about the future.

Just after I joined the CMV Board I was given a copy of the book “A History of the CMV Group 1934-2009”. I will let you into a little secret; I didn’t read it until a few years ago. When I did, some of the missing pieces in my mind in relation to how the Crawford family approach business, fell into place.

Let me explain. I did not have the pleasure of meeting the founder of CMV, Sid Crawford. I do know, however, from the history book and from

David SimmonsChairman

my own research that Sid was one of those unique individuals who had the entrepreneurial spirit to start and build a business. Be certain, he was also a risk-taker given that he started the company just as Australia was coming out of the Great Depression in the 1930’s. The thing that sticks in my mind however is that Sid had great compassion not only for those who worked for him but also for the greater community. A remarkable man in many ways, with his approach to life refl ected in his selection of “BETHANKFUL” as the early telegraphic code name for CMV.

I met Jim Crawford only once and only briefl y. A second generation Crawford who was committed to building and diversifying the CMV Group. Under Jim’s guidance the business grew rapidly and in many different directions. Many of the new business initiatives were relationship based and prospered due to Jim’s highly regarded standing in business and the community. Jim encouraged his three sons Michael, Paul and David to help him grow the business, a challenge all three embraced with vigour. Like his father, Jim had great compassion for all CMV employees and for the wider community. A colleague and competitor said it best “Jim was one of the best citizens you could ever get. He just showed extraordinary judgement as a citizen of the world”.

Now what were those missing bits? Sometimes in my early days on the Board, I wondered why some decisions seemed to take so long and why some things that seemed obvious to me were never progressed. What I now realise is that behind the scenes there was some deep thinking going on by Michael, Paul and David. If a decision was to impact on a staff member, a long term relationship, be it supplier or customer, or in some way confl icted with the values of the company, then that decision would not be taken lightly. What this told me was that CMV’s most valuable asset was not on the balance sheet; it was something that passed from generation to generation and it was something pretty simple…business reputation.

In combination, Michael, Paul and David have shown the entrepreneurial spirit to continue to grow and geographically diversify the CMV Group. They are committed to transferring the Group’s most valuable asset and their vision to the fourth generation of Crawford family members, General Managers and all CMV employees.

Well done Sid, Jim, Michael, Paul and David. Be proud of your achievements and “be thankful”.

WHAT THIS TOLD ME WAS THAT CMV’S MOST VALUABLE ASSET WAS NOT ON THE BALANCE SHEET; IT WAS SOMETHING THAT PASSED FROM GENERATION TO GENERATION AND IT WAS SOMETHING PRETTY SIMPLE…BUSINESS REPUTATION.

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SIDNEY CRAWFORD

Sid Crawford as a young bank manager (c.1908) Sid Crawford in Army uniform in 1917

SIDNEY CRAWFORDFrom a very young age, Sidney Crawford (or Sid or SC as he was also known) was all too aware of the inequalities that manifested themselves around him. Sid was born on 4th November 1885 at Warrnambool in Victoria. He was the middle child of seven boys and it was a constant struggle for his parents, James and Ruth, to make ends meet. The brothers sold rags, bones and papers to earn extra money, which strengthened Sid’s resolve to gain an education and make something of himself. Later in life, his humble beginnings contributed to his philanthropic outlook and deep interest in labour markets. “Even as a young boy it puzzled me why hordes of people should be out of work and near starvation whilst others lived in plenty,” Sid said. This youthful puzzlement grew into an obsession with the notions of profi t sharing and employee relations, which Sid was

Sid (front right) with his parents and six brothers.

determined to make a reality when, one day, he had established his own business.

At the age of 14, Sid was awarded a scholarship to Surrey College in Melbourne. He seized the opportunity to escape his poverty-stricken past and upon completing school, went on to become a bank manager for the English, Scottish and Australian Bank Ltd, fi rstly in Ballarat and then in Beringa. At just 19 years of age, Sid was believed to be the youngest bank manager ever appointed in Victoria, and before he turned 25, he was sent to Melbourne to open and manage a branch at Elsternwick.

Sid’s introduction to the motor industry came about by chance, when he was appointed by the bank as a receiver of Tarrant Motors in Melbourne. In 1915, aged 30, he left the bank

to work for Tarrants, where he was swept up in the excitement of a whole new era for the motor car industry in Australia. Sid was a visionary and was quick to assess the enormous potential of an industry that was clearly on the verge of a boom. He was also determined to establish his own business, but his plans were interrupted by the outbreak of World War I. Sid enlisted in the Australian Imperial Force in 1917 and served in France as a driver with the 4th Australian Motor Transport Company. He was discharged from the Army in 1919 and shortly after arriving back in Australia sent money for an engagement ring and a passage to Australia to Elsie Mary Allen, whom he had met during a period of leave in England. Sid and Elsie were married in Melbourne in 1920. Their fi rst son, James (Jim) was born in 1922, followed by Diana in 1923 and Jocelyn in 1924.

SID WAS A VISIONARY AND WAS QUICK TO ASSESS THE ENORMOUS POTENTIAL OF AN INDUSTRY THAT WAS CLEARLY ON THE VERGE OF A BOOM

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THE MOVE TO ADELAIDE

THE MOVE TO ADELAIDESid considered that Adelaide presented the best opportunity to set up a new motor company and subsequently relocated his family from Melbourne. In 1922, he secured the Austin and Fiat motor car franchises and set up two separate companies – Adelaide Motors and All British Motorhouse in a partnership arrangement. The companies originally operated from Pulteney Street, but later moved to Franklin Street where they continued to prosper, selling and servicing Austin and Fiat cars, as well as small Caterpillar farm tractors.

In 1930, Sid joined the state’s fi rst Transport Control Board and was appointed Commissioner to the SA Harbours Board. He was rapidly gaining a reputation as an energetic and infl uential business leader. Unfortunately, however, his support for a “new” invention, known as the Hobbs Gearless Drive, backfi red and eventually led to him being forced out of Adelaide Motors by his fellow Directors. This was a devastating blow that could well have ended Sid’s career in the motor industry. Instead, it was the unlikely beginning of Commercial Motor Vehicles.

THE FALL-OUTDocumented in great detail in Jim Crawford’s memoirs is the story of the Hobbs Gearless Drive which culminated in Sid being ousted from Adelaide Motors. In 1931, Adelaide Motors was approached by a man called Howard Hobbs who claimed to have invented a type of automatic transmission and he wanted to borrow a car to test it on. Adelaide Motors willingly lent Hobbs an Austin 7 Tourer, to which he fi tted the gearless drive and demonstrated how it worked. It became apparent that if the Hobbs Gearless Drive was to succeed it would have to be installed in cars from the outset, so Adelaide Motors sent Hobbs to England to try and convince car manufacturers of its merits. The following year, Sid became concerned that little progress was being made and sailed over to England where his worst fears were realised.

It turned out that the gearless drive was not an original invention, but an old German invention that Hobbs had picked up, and there was no interest in developing it. Sid was under enormous pressure because money was very scarce during the Great Depression and it had been an expensive exercise to have Hobbs in England with no outcome. He worked up the courage to break the news to the Adelaide Motors shareholders, but the fall-out of the failed Hobbs Gearless Drive was that his fellow directors forced him out of the company that he had set up. In his memoirs, Jim recalled, “During that period things were pretty tough and there was no other way for Dad to earn a living in 1933. He became very despondent and it literally turned his hair white. I remember those few weeks and it was really a dreadful time.”

THIS WAS A DEVASTATING BLOW THAT COULD WELL HAVE ENDED SID’S CAREER IN THE MOTOR INDUSTRY. INSTEAD, IT WAS THE UNLIKELY BEGINNING OF COMMERCIAL MOTOR VEHICLES.

Image courtesy of the State Library of South Australia. SLSA: B 9595 Franklin St, southside 1927

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A COMPANY IS BORN

Sid considered the sale and service of commercial vehicles, as distinct from motor cars, was very much neglected in Adelaide in the 1930s. The potential for truck sales was unrealised and in order to protect the revenue of the State railway system, the government had imposed severe restrictions on the carriage of goods by trucks. However, Sid was determined to pursue his vision to establish a commercial dealership. The British Leyland truck distributorship followed Sid from Adelaide Motors and he quickly set about securing the franchise for the spectacular American Diamond T trucks. The sale and service of these two brands of trucks became the major activity of CMV and they proved to be excellent choices for the fl edgling motor company.

In 1939, CMV became the South Australian distributor for Commer and Karrier trucks which had previously been sold by the Waymouth Motor Company. Only a handful of sales were made during WWI, but a few years after the end of the war, Commer trucks really began to contribute to the fortunes of CMV.

“IN 1934, YOU HAD TO HAVE SOME PRETTY STRONG CONVICTIONS TO START A BUSINESS WHICH WAS GOING TO CONCENTRATE ON THE SALE OF COMMERCIAL MOTOR VEHICLES AND NOT MOTOR CARS, SOMETHING WHICH HAD BEEN VERY RARELY TRIED IN AUSTRALIA UP UNTIL THAT TIME.” – Jim Crawford

FIRST TRUCK SALEAlthough Leyland and Diamond T trucks were CMV’s bread and butter for many years, the fi rst truck ever sold by the company in 1934 was in fact a Brockway. This up-market American truck was sold to Broken Hill carrier Ron Glasson after CMV won the tender to buy two Brockways from the Customs Department when the previous owner failed to pay the import duty.

A COMPANY IS BORNThe devastating experience of being ousted from Adelaide Motors profoundly infl uenced Sid and strengthened his resolve to establish his own company – one that would provide him and his family, as well as future employees, with job security.

Despite the gloomy prospects of setting up a new company during the Great Depression, Sid was undeterred. With the encouragement and fi nancial backing of a few friends, he raised £7100 to set up his own motor company, specialising in the sale and service of commercial vehicles. On 26th February 1934, Commercial Motor Vehicles (CMV) was incorporated and began operating from Flinders Street, Adelaide. The site had formerly been used as a car parking station and included a tyre repair and retreading workshop. In 1937, Sid purchased a series of derelict buildings in Franklin Street, and transformed them into CMV’s fi rst workshop, which was offi cially opened in February 1939.

Commercial Motor Vehicles Limited, 64-66 Flinders Street, Adelaide (c.1935)

Commer (left) and Karrier trucks (right) in CMV's workshop

Clipping from The Advertiser, 26th February 1934.

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TRACTORS, BUSES & FIRE ENGINESIn the 1930s, farming was critical to South Australia’s economy, as it still is today, and Sid believed that CMV should have a franchise that appealed to farmers. At the time, most of the farm work was still being done by draught horse teams, however, that was all about to change and Sid made sure CMV capitalised on this development when he obtained the SA distributorship for Case Agricultural Tractors. CMV sold the Models C and L – the fi rst had the performance to replace an 8-10 draught horse team, while the Model L had the performance equivalent to a 16-20 horse team. Needless to say, draught horses quickly became redundant and CMV had to employ the services of horse buyers to value horse teams and take them as part payment for a tractor. CMV later introduced an on-farm repair service that further strengthened the company’s relationship with rural customers. From 1935 until 1963, when CMV relinquished its association with Case, the company sold more than 1000 tractors. This alternative income stream contributed to the success of CMV in its formative years and helped the company form strong relationships with rural customers throughout South Australia.

With strong sales of Diamond T trucks, Sid saw an opportunity to convert the trucks’ chassis for use as passenger buses. Until then, local bus operators were using Studebaker and Packard cars, but these did not accommodate many passengers. CMV lengthened the wheelbase and dropped the fl oor height to create a suitable chassis and then had the bodies of the buses built locally by J A Lawton. By 1940, half of the privately owned buses operating in SA were Diamond Ts produced by CMV. Not only did they cater for more passengers, they were also fast and quite powerful and soon dominated the market.

TRACTORS, BUSES & FIRE ENGINES

The Diamond Ts were largely custom built, with the chassis imported from America, before being fully assembled and fi tted by CMV with other components. This gave CMV the opportunity to customise trucks to suit the operator’s exact requirements. As well as producing buses, CMV converted Diamond Ts to fi re engines and from 1935 to 1940 virtually replaced the SA Fire Brigade’s entire fl eet.

While CMV made steady progress during the 1930s, Sid fostered a spirit of innovation, which ensured the company was able to capitalise on many opportunities that passed by other less forward-thinking companies. Over the ensuing years, this foresight and innovation would provide additional income streams and later resulted in the diversifi cation of CMV into agriculture.

CMV was the fi rst tractor distributor in Australia to sell tractors fi tted with pneumatic tyres, instead of steel rimmed wheels. This Model L Case tractor’s performance was equivalent to a team of 16-20 draught horses

In the late 1930s, CMV sold many Diamond Ts to the SA Fire Brigade. In the late 1930s CMV sold many

Image courtesy of the National Motor Museum (A Museum of the History Trust of South Australia)

An early Briscoe’s Diamond T bus.

77

WWII – A TEST OF SURVIVAL

and began designing and making every part of the gas producer, as well as selling them. According to Sid, it was a “sea of trouble” but after some design modifi cations and handing the manufacturing onto another company, CMV sold and fi tted more than 2500 units, which netted £10 each. As petrol became more plentiful, stocks were wound down and the company was dissolved in 1944.

Sid’s other peculiar enterprise at the time was manufacturing smoking pipes, which even he described as “a romance”. Sid was an inveterate pipe smoker, and frustrated by the diffi culty of obtaining pipes during the war, he took matters into his own hands. In 1944 he set up his very own pipe manufacturing works at CMV, known as the Haskard Smoking Pipe Co. A steady demand for the pipes meant that at the height of production, 43 people were employed in the expanded workshop and CMV controlled 60% of the sales in Australia and even exported pipes overseas. In total, the company produced more than 150,000 pipes, including a steady supply

for soon-to-be Prime Minister Ben Chifl ey who served with Sid on the Australian War Workers Housing Commission. In 1955, several years after the Haskard Smoking Pipe Co had been closed down, Sid confessed, “The Company did not make much money out of it, but it probably caused more fun than any other venture we undertook…It was great fun while it lasted and is now a pleasant memory.”

A Brig Gas Producer mounted on the rear of a motor car.

Soon-to-be Prime Minister, Ben Chifl ey, was supplied with smoking pipes which were manufactured by CMV during WWII

WWII – A TEST OF SURVIVALHaving survived the Great Depression, CMV faced a new challenge as the debilitating impact of World War II reached Australia. More than half of CMV’s employees enlisted in the Australian Armed Forces, including Sid’s son, Jim, stretching the company’s resources and skills to their limit. In addition to staff shortages, new vehicles were very diffi cult to obtain, as overseas factories focussed on supporting the war and Australian authorities placed strict controls on importing goods. Some Case tractors were allowed into the country because of their important contribution to food production, and CMV also imported a handful of American White trucks for essential services under the Lend Lease scheme. These limited sales, combined with some defence contract work, ensured CMV was able to trade profi tably through the war years, although at signifi cantly reduced levels. The company began fi tting Perkins diesel engines to buses and trucks to overcome the shortage of petrol and this became an important part of CMV’s war-time business.

Sid led by example during the war years, directing his mind and the attention of his employees to new ventures that he hoped would, fi rst and foremost, keep his staff in gainful employment, and secondly, make a profi t. The fi rst goal proved easier to achieve, but it was a testament to Sid’s sense of innovation and adventure that he persisted with two projects in particular. These ventures certainly stretched the capabilities of the motor company, but they also contributed to developing a culture of innovation, teamwork and commitment.

Petrol rationing during the war meant that an alternative fuel had to be found and motorists turned to gas producers which converted solid material, such as charcoal, into fuel. In 1940, CMV fl oated a company called Brig Gas Producers

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JIM CRAWFORD

JIM CRAWFORDJim was the eldest of Sid and Elsie’s three children. Shortly after Jim’s birth in January 1922, Sid and his family moved to Adelaide and took up residence in Brighton. From a very young age, Jim was obsessed with motor cars, as well as trucks, trains and buses. Each evening he waited in anticipation to see which car his father would drive home from work, and every Sunday he sat on Sid’s lap and helped steer the car home from church. Jim mastered the art of driving by the time he was eight and was permitted to drive solo around the yard at CMV.

Throughout his schooling, Jim showed a much keener interest in the goings on at CMV than he did in his schoolwork. He left school early to start an accountancy course, but after a short stint working for chartered accountants, he was called up into the Army, possibly saving him from a career as an accountant. Initially, Jim served in the Army Service Corp in Papua New Guinea managing a food distribution depot, but due to the infl uence of his father, was transferred to a mechanical repair unit where he was able to gain some “worthwhile” knowledge, related to motor vehicles.

While he was on leave during the war, Jim met Josephine Bond (Jo) who was training as a nurse in Adelaide. He proposed as soon as the war was over and they were married in 1946. Their fi rst child, James, was born in 1948, followed by Michael, David, Paul, Sue, Martin and Elle over the next 18 years.

The post-war years were busy ones for the newly married Jim, as he led several convoys back from the disposal sales in the Northern Territory and then began his new career as a salesman at CMV. He proudly sold the fi rst post-war Commer

The Crawford family in 1938 (from left) Diana, Jim, Elsie, Sid and Jocelyn.

Jim Crawford was able to drive by the time he was eight years old

and according to Jo, was a “born salesman who could have sat in the gutter and sold trucks”. Neil Halliday, who was one of CMV’s fi rst apprentices, said Jim knew a lot more about trucks than Sid. “He knew everything about trucks as far as selling them to people. He was always very passionate about the business and the trucks he was selling.” Jim was appointed a Director in 1950, but Sid continued to rule with an iron fi st, leaving Jim little choice but to play a supporting role until Sid’s death in 1968.

Jim Crawford and his family in 1966 (from left) David, Jim, Paul (holding baby Elle), Michael, Sue, James, Martin and Josephine

“IN THOSE DAYS I LIVED AND BREATHED TRUCKS AND THE BUSINESS AND DAD WAS A GREAT TEACHER. EVERY NIGHT, WE VIRTUALLY WOULD HAVE A RUNDOWN OF WHAT HAD HAPPENED THAT DAY.”

POST-WAR RECOVERY

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POST-WAR RECOVERYFor some time after the war, new vehicles remained in incredibly short supply, and CMV was forced to look at new strategies to obtain vehicles and spare parts until overseas supplies of Commer and Diamond T trucks and Case tractors recommenced. During WWII, the Northern Territory was a huge supply depot for the Army and vast quantities of materials of every description were assembled at depots along the road between Alice Springs and Darwin. Auction sales were organised to dispose of the excess goods. From 1945-1948 a team of intrepid CMV employees embarked on a series of expeditions to the Northern Territory to buy ex-Army vehicles and transport them back to Adelaide. Jim Crawford, himself, completed fi ve trips and was able to put his fi rst-hand knowledge of Army vehicles to good use selecting used vehicles to purchase. In the process of obtaining vehicles and parts, CMV also brought back dismantled buildings to re-erect on its properties in South Australia, to overcome the shortage of building materials, as well as a variety of disposal goods, from sunglasses to overcoats, which it sold to staff. In 1946, CMV purchased several cottages and some vacant land on Franklin Street and in 1948 set about re-erecting a 65-metre assembly building. According to Sid, Gorrie House, as it was known, stood as a permanent monument to the employees who worked so hard procuring and transporting vehicles and building materials from the Northern Territory.

BRITISH TRACTORSIn 1945, CMV accepted the agencies for David Brown tractors and a range of small garden tractors, produced oddly enough by the British Motor Boat Company (BMB). This was part of the company’s strategy to offer farmers a broader range of tractors to suit different conditions, in much the same way it offered truck drivers a range of vehicles. For many years, a newly formed subsidiary of CMV, known as British Motor Industries (BMI) handled the David Brown and BMB products, allowing CMV to concentrate on the sale of Diamond T and Commer trucks and Case tractors.

Part of a CMV convoy of ex-Army vehicles making its way from Darwin to Adelaide.

The materials for Gorrie House, as well as the Diamond T980 (pictured) were purchased at Army disposal sales near Darwin

David Brown tractors on display

IN 1946, CMV PURCHASED SEVERAL COTTAGES AND SOME VACANT LAND ON FRANKLIN STREET AND IN 1948, SET ABOUT RE-ERECTING THE 65-METRE 'GORRIE HOUSE' ASSEMBLY BUILDING.

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PATIENCE REWARDED

PATIENCE REWARDEDIn 1948 sighs of relief and shouts of jubilation in the CMV workshops welcomed post-war supplies of Diamond T and Commer trucks. An ill-timed strike at the US Case factory delayed production for an additional 15 months after the war ended, by which time CMV had accumulated orders for 400 Case tractors. From this point on, CMV was able to sell virtually every new truck and tractor it could obtain to South Australia’s vehicle-starved population. The rewards for persisting during WWII became clear to those motor vehicle companies that had weathered the storm. CMV, with its diverse range of trucks and tractors and its growing reputation as a specialist supplier of commercial vehicles was in a better position than ever before to capitalise on the boom times that lay ahead.

Once the overseas factories were back in full-scale production and import restrictions were lifted, new vehicles literally fl owed into CMV’s assembly departments. The workload quickly escalated and the company was soon assembling up to 100 trucks and tractors a month. After many years operating from inadequate and temporary premises, the assembly department fi nally moved into a new facility at Ovingham.

As business started to gain momentum, CMV began to accumulate new properties, including a large block of land on South Road, Richmond which Sid purchased in 1946 with grand plans to build a large new facility to house sales, spare parts, workshop, panel shop and assembly workshop. This became a reality, with a 106 x 37-metre building completed, with a substantial amount of the framework recycled from the disposal sales in Darwin.

CMV’s South Road facility under construction in the late 1940s.

CMV Assembly Division at Ovingham

COMMER TAKES OFF While CMV had held the distributorship rights of Commer and Karrier trucks since 1938, sales of these vehicles did not take off until after the war. In 1946 the Rootes Group of Great Britain (which owned Commer and Karrier) announced it would commence the assembly of cars and trucks in Australia and this signifi cant development enabled CMV to sell large numbers of Commers over the next 20 years. These trucks proved to be versatile across many industries and CMV was involved in converting the chassis for use as passenger buses, as well as “Long Toms” for carting timber. After a slow start, Commer eventually became one of CMV’s most successful vehicles and in 1960, the Company delivered its 4000th Commer truck.

A Commer truck delivers completely knocked down (CKD) trucks which were packed in large wooden crates for assembly at CMV.

THE WORKLOAD QUICKLY ESCALATED AND THE COMPANY WAS SOON ASSEMBLING UP TO 100 TRUCKS AND TRACTORS A MONTH.

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MOTOR CARS

MOTOR CARSIn 1954, CMV ventured into the sale of passenger cars for the fi rst time in its 20-year history. As its name implied, and as Sid intended, CMV was devoted specifi cally to the sale and service of commercial vehicles. However, the opportunity to become involved in motor cars presented itself when the Rootes Group offered CMV the SA distributorship for Humber, Hillman and Sunbeam Talbot cars.

Under the distribution arrangement with Rootes, it was agreed that all of CMV’s other franchises would be held in a separate company, so that CMV handled Rootes Group vehicles only. As a result, a subsidiary of CMV, known as British Motor Industries (BMI) which had been formed in 1949, handled all other products. From 1955, BMI had its own management board and a new showroom was built on Franklin Street to display David Brown, Case and Nuffi eld tractors, along with other agricultural products, including Victa Mowers.

Within two years of taking on the Rootes Group distributorship for Humber, Hillman and Sunbeam Talbot cars, CMV delivered its 2000th vehicle, but management began to question the longevity of the wholesale and retail trading of Rootes passenger vehicles. CMV began exploring new associations with Holden and Toyota. Nothing ever transpired in relation to Holden, but in 1963, CMV accepted a proposal to take on the Toyota

commercial distributorship for SA. Due to the arrangement with Rootes, Toyota Landcruiser and Truck Sales was set up as a separate division of BMI. It was slow going initially, and in 1965 the Board voted against ordering additional Toyota vehicles, mainly due to its concerns about CMV’s increasing reliance on Japanese products.

Despite the CMV Board’s early doubts about the value of the Toyota commercial distributorship, it eventually picked up steam as public confi dence in the brand began to grow. After a few years, demand exceeded the factory’s ability to supply and the directors knew they had commenced a very important relationship with a brand that would become a mainstay of CMV’s operation. In 1973, after the decision had been made to sell the South Road, Richmond property, Toyota relocated to a premises on Flinders Street, which CMV purchased from Adelaide Motors on a walk-in, walk-out basis. The following year, the trading name for the Toyota franchise was changed from British Motor Industries (BMI) to Commercial Motor Industries (CMI), as the company was no longer selling or servicing British vehicles.

In 1966, the American Chrysler Corporation acquired the Rootes Group of Companies in both Great Britain and Australia, and CMV elected to cease selling motor cars and to concentrate

again on the sale of commercial vehicles, accepting instead, a Dodge truck specialist dealership from Chrysler. CMV was also involved for many years in the distribution of Chrysler (and subsequently Mitsubishi parts) in South Australia.

BMI was the fi rst South Australian distributor for Victa rotary lawnmowers, and between 1956 and 1958, the company sold hundreds of Victa mowers. Back then, these were very much a novelty, and BMI appointed dealers all over the State. It was not long, however, before the Victa company realised their lawnmowers would have to be a general franchise line and set up their own distribution facilities.

s.y

Left: A Lite Stout from the Toyota commercial range.

VICTA LAWNMOWERS

IN 1963, CMV ACCEPTED A PROPOSAL TO TAKE ON THE TOYOTA COMMERCIAL DISTRIBUTORSHIP FOR SA.

Another major development during this period, was the emergence of new heavy vehicles that dominated the semi-trailer market, particularly for interstate work. This led to CMV seeking a suitable heavier vehicle, as neither Commer or Dodge could compete against the larger International, Mack and Mercedes trucks. Jim later observed that it was the importation of the Mercedes-Benz 1418s in the mid-60s that ushered in a new era for the transport operator in Australia. “Mercedes was doing very well with their 1418 model, the fi rst substantial truck in those days above the traditional 7-tonner, and they were making inroads into the interstate market. We felt we ought to be able to compete with them but there were no Dodge or Commer models adequate to the task. I happened to see an unusual truck on South Road – a Volvo, being operated by Mayne Nickless - and I approached the Adelaide Volvo rep and talked about the possibility of our taking on the Volvo truck as it looked to be the sort of vehicle that would compete with the Mercedes.”

GEAR CHANGESThe 1950s and 1960s witnessed the most signifi cant changes to the vehicle franchises held by CMV, with the introduction of Rootes Group passenger cars in 1954 and the new Toyota commercial distributorship in 1963. The same year, CMV’s long and successful association with Case tractors came to an end, followed shortly by the demise of the Diamond T Motor company in 1967, that led to it being merged with Reo to form Diamond Reo. Despite these changes, it was a period of substantial growth, boosted by the loosening up of state-imposed restrictions on transport operators. This signifi cantly increased the market for selling trucks and had an enormous impact on the progress of the transport industry and the CMV operation.

One of the consequences of selling a large volume of new trucks was the handling of second hand vehicles, which caused a great deal of antagonism between Sid and Jim. Sid had very rigid views about second-hand vehicles and instructed that stocks be kept to an absolute minimum. However, Jim said it later became clear that second-hand vehicles would become a major profi t centre for motor companies and a good display of second-hand vehicles would attract buyers to the yard. Used trucks were particularly diffi cult to sell, so in 1958 the CMV Board established a salvage company. This business operated successfully until 1975, during which time more than 500 vehicles were dismantled, and the parts cleaned and sold. The salvage operation was sold prior to CMV relocating to Regency Park, however in 1983 it was reinstated as CMV Dismantlers, at Grand Junction Road, Wingfi eld. The business continued to operate from this location for nearly 30 years, before the CMV Board made the diffi cult decision to close it, mainly due to the impact of stricter safety and environmental regulations.

GEAR CHANGES

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According to Jim, the Volvo was a vast improvement on the types of vehicles CMV had previously sold.

“Many of our then loyal Commer and Dodge clients traded up to Volvo. The change from the F86 to the F88s and G89s represented another giant step forward for CMV and for those customers who bought these much higher horsepower and more refi ned trucks.”

GEAR CHANGES

possibility of our taking on the Volvo truck asit looked to be the sort of vehicle that would compete with the Mercedes.”

higher horsepower and more refi ned trucks.

Former employee Neil Halliday was one of many customers to upgrade from Commer to Volvo trucks once CMV took on the franchise in 1968.

THE 1950s AND 1960s WITNESSED THE MOST SIGNIFICANT CHANGES TO THE VEHICLE FRANCHISES HELD BY CMV

HEAVY DUTY Through its strong association with the Thiess organisation, through Thiess Toyota, in 1966, CMV negotiated the right to represent White and Autocar heavy duty trucks and Kato excavators in South Australia. This gave CMV an opportunity to compete with Mack and International in the heavy vehicle market segment. Not content with this, in 1968, CMV also became the SA dealer for Volvo trucks, with the sophisticated F86 enabling it to compete directly with the similar sized Mercedes. The fi rst Volvos were sold from CMV’s Richmond facility, along with Dodge and White trucks, but the potential sales volumes dictated that before long, Volvo would require its own dedicated dealership.

At the same time as taking on the SA dealership for Volvo trucks, CMV purchased a company called Peter’s Diesel, which included a truck servicing business and a major freight transport terminal at Gepps Cross. This was used by a considerable number of country carriers as an alternative to the busy and crowded Franklin Street terminal. Peter’s Diesel held the franchise for Kenworth trucks that competed directly with the White trucks already sold by CMV. Although the two brands were represented by different sales teams operating from different locations, it became clear that the company would have to give up one of the franchises and Jim made the tough decision to surrender the White franchise.

At this point in its history, CMV had abandoned the sale of agricultural products and passenger cars to focus solely on supplying and servicing commercial vehicles. It was able to simultaneously operate several competing franchises to provide customers with an entire range of commercial vehicles from the light Toyotas, through the range of medium-size Dodge and Commer trucks to the lower end of the heavy duty market with Volvo, and fi nally Kenworth for the top end of the range in heavy duty capabilities.

HEAVY DUTY

13

As the truck brands began to grow, the decision was made to relocate the Kenworth dealership to Richmond and establish Peter’s Diesel as a dedicated Volvo outlet, where an extension catered for spare parts, offi ces and a small showroom. The dealership also sold Volvo buses and over several years supplied more than 400 bus chassis, under the hard-won tender for the State Transport Authority (STA), which had

HEAVY DUTY

In 1969, this Kenworth was the largest and most expensive truck that had ever been sold by CMV.

CMV purchased Peter’s Diesel in 1968 that would later become Voltruck CMV

taken over all the private bus companies operating in metropolitan Adelaide. Although each chassis only netted about $1500, the spare parts business over the next 20 years proved to be of immense value. The premises at Gepps Cross had to be enlarged to cope with bus assembly and pre-delivery, particularly for articulated buses that were part of the contract for a second STA tender.

14

of business leaders and politicians throughout Australia. Sid was adamant that his “venture in industrial partnership” was not of a benevolent nature, but that allowing employees to participate in management, profi t sharing and improvements in amenities and welfare would lead to greater effi ciency and therefore higher profi ts. Sid’s aim was to provide CMV’s employees with a greater sense of ownership and pride in their day-to-day work, which he insisted would not only give them greater personal satisfaction, but would improve productivity and profi ts for the business.

Over several years, Sid experimented with and refi ned schemes for employee benefi ts, including sickness and unemployment funds, and Profi t sharing. From the very beginning of CMV in 1934, occasional bonuses had been paid to staff, however Sid did not believe these contributed to a co-operative approach. In 1944 the CMV Board approved an Employees Sick and Unemployment Fund but it became apparent that the only employees gaining any benefi t were those who were sick for long periods. In 1948, the fi rst labour bonuses were introduced for workshop personnel

which marked the start of profi t sharing and led onto monthly labour dividends and eventually in 1955, the launch of the Employee Shareholding Scheme. This involved the distribution of 78,000 employee ordinary shares and entitled employees who had completed a minimum of six months of satisfactory employment to apply for membership and shares in the company. By this stage, Sid was satisfi ed that his vision for a co-operative system was working with “complete effectiveness” and was at the “forefront of the co-operative ideal in Australia.”

“IT HAD BEEN MY LIFELONG DESIRE, FROM EARLY YOUTH, IN ANY INDUSTRY IN WHICH I WAS CONNECTED, TO HAMMER OUT A BETTER WAY OF LIFE FOR THE ‘TOAD BENEATH THE HARROW’.”– Sid Crawford

LIFE’S BLESSINGS

“I used to think that when I left

Adelaide Motors, which company

I formed originally, the bottom had

dropped out of my business world,

but looking at it today, I realise that

had I remained with that Company

it would have been quite impractical

to carry out our co-partnership

schemes. That’s worth remembering

and indicates that in life great trials

so often turn out to be blessings.”

– Sid Crawford, 1954

Sid Crawford died on 14th May 1968, having devoted more than half a century of unwavering energy and commitment to the Australian motor industry. Fortunately for everyone associated with CMV, Jim was well into his 40s and very capable of fi lling his father’s shoes. Jim’s style was much more understated than Sid’s who throughout his career was considered a force to be reckoned with. Sid was charismatic, controlling and controversial. He was both loved and feared by his employees who were confounded by the extraordinary depths of his compassion for other human beings on one hand, and by his arrogant, dictatorial style of command on the other. He took an intense interest in every one of his employees, as well as the world around him and his keen observations gave him an incredible understanding and empathy for others, particularly those less fortunate than himself. Those working at CMV during Sid’s lifetime were privileged to share in the company’s profi ts and other benefi ts. This was a learning experience for them all, and Sid’s vision for “an industrial partnership” placed CMV and its employees in the enviable position of leading the way in Australia when it came to employee relations. Such was the extent of Sid’s legacy, particularly regarding employee relations and community service, that it is still very much alive at CMV today.

Sid’s greatest contribution, not just to CMV, but to the broader community was his extraordinary efforts to develop a more equitable post-war society, as one of the founding members of the Common Cause Movement and later as the

“father” of employee relations in Australia. While Common Cause was an important movement that led to the establishment of many successful co-operative community initiatives, it was relatively shortlived. However, Sid’s early experiments in labour-management relationships were ground-breaking and attracted the attention and interest

END OF AN ERA

In 1954, SA Premier Thomas Playford (centre) presented CMV employees with their monthly bonus cheques which took the total amount distributed to staff to £250,000. The Premier is pictured with Jim and Sid Crawford

15

END OF AN ERA

In the 1950s, Sid appointed a Personnel Offi cer who was responsible for recruitment, induction of new employees, profi t sharing arrangements, care of apprentices and visiting sick employees. In addition, this person was charged to assist employees with more personal needs, including fi nding accommodation and helping organise appointments for medical treatment or legal advice. Other initiatives introduced by Sid, that assisted in his goal to achieve total co-operation, were a monthly staff newsletter and a social club, both introduced in 1946. The newsletter in particular, was a signifi cant development in employee relations, opening up the channels of communication to ensure staff were kept well informed about the company’s progress and external events that impacted on the business. Sid was a prolifi c thinker and writer and this translated to detailed accounts on his thoughts about life at CMV and in the broader community. He was intent on providing employees with an instructive insight into his commercial and charitable philosophies.

A MOVING TRIBUTEJim’s refl ections on his father’s death.

“It was the end of an era because not only had he been a pioneer in the motor industry, he had been a great teacher, father and a very well respected citizen of South Australia. His philosophy had always been that the making of money, purely for its own end, was what he called ‘a puerile exercise’, unless you could do something with it to better society. In this respect he put his philosophies into practice in the late 1940s through the establishment of the CMV Charitable Foundation, which was involved in the establishment of kindergartens, libraries, and a whole host of individual and charitable enterprises. He also established in 1944, a Sickness and Accident Fund in the company to provide protection for members of the staff, and subsequently the beginnings of a retirement fund and staff shareholding scheme. He was years ahead of his time and whilst we no longer operate these special funds in their original form, they certainly provided considerable benefi t to staff at the time. Nowadays, through legislation, companies are bound to provide superannuation and other benefi ts, but in 1948, what he did, very much demonstrated his commitment to his staff and to society.”

Caricature of Sid Crawford by Hal Gye.

First annual CMV Staff Picnic held at Clarendon in 1937

Some of the ladies who attended the CMV Dance in 1946

16

CMV FOUNDATION

CMV FOUNDATIONAnother of Sid’s lasting contributions to CMV and to the community at large was the formation of the CMV Foundation, the origins of which date back to 1948, following the death of one of CMV’s founding directors Dr Ern Millhouse. Dr Millhouse supported Sid when he was dismissed from Adelaide Motors, and became a key stakeholder in CMV from the outset. He also helped Sid hammer out the broad principles of the co-operative scheme and was a loyal and infl uential friend. Prior to his death, Dr Millhouse and Sid had drawn up a draft document for the formation of a trust known as the Inasmuch Foundation. In 1951 this was formalised as the CMV Charitable Trust and was issued 10,000 ordinary shares in CMV. The earnings of the trust’s investments were distributed to charitable organisations and it also helped establish new kindergartens and assist in the development of library services in South Australia. Today, this operates as the CMV Group Foundation which owns 15% of the ordinary shares in CMV.

The Crawford family have fond memories of Sid’s overwhelming concern for those less fortunate than himself. They recall, “He had people everywhere he was looking after – it was one of his greatest strengths.” This humility and benevolence manifested itself in Jim who was often heard saying, “Always leave something on the table for the next bloke.” The CMV Group Foundation is very much the practical embodiment of these sentiments which are cherished by the current custodians of CMV.

In 2005, a CMV Staff Charitable Foundation was formed (with separate advisory committees in Victoria and South Australia), to mirror the philosophies of the CMV Group Foundation. All staff are invited to make regular, voluntary deductions from their pay and the CMV Foundation matches their contribution on a dollar-for-dollar basis. Over more than 60 years, the CMV Foundation has distributed many millions of dollars to community organisations and individuals in need. These photos show some of the benefi ciaries of CMV’s commitment to supporting the wider community.

Dr Ern Millhouse

ANOTHER OF SID’S LASTING CONTRIBUTIONS TO CMV AND TO THE COMMUNITY AT LARGE WAS THE FORMATION OF THE CMV FOUNDATION. THE ORIGINS OF THE FOUNDATION DATE BACK TO 1948 FOLLOWING THE DEATH OF ONE OF CMV’S FOUNDING DIRECTORS, DR ERN MILLHOUSE.

17

CMV Group supporting the Novita Convoy for Kids in 2014.

18

CHANGING GUARD

CHANGING GUARDFollowing Sid’s death, Jim was immediately elected Chairman and shared the role of Joint Managing Director with Len Mulroney who had been Sid’s right-hand man for 38 years. Jim was a pacifi st who avoided confl ict and controversy. He was very approachable and well liked by everyone he came into contact with him. Some staff members who had been intimidated by Sid, felt much more comfortable with Jim, indeed many of them had grown up working alongside him. Jim’s more consultative style of leadership, gave other directors the opportunity to become more involved in decision-making, and over the ensuing years Keith Skopal, Bob Boxall and Mos Branson made particularly signifi cant contributions to the business.

Under Jim’s leadership, CMV entered a new era of management characterised by bursts of activity as Jim demonstrated his eagerness to expand the company's operations and profi ts. The next two decades were marked by unprecedented expansion, as well as diversifi cation. This was

accelerated by the introduction of new technology including fax machines and computers, which sped up communications and the handling of fi nancial transactions. More accessible air fl ights signifi cantly reduced the time and distance between negotiations and decisions, saving days of interstate travel by road, and weeks or even months, of overseas travel by sea.

One of the fi rst signifi cant changes to take place after Sid’s death, was the merging of CMV’s Toyota, Chrysler and Rootes’ Parts operations in 1969 to form a centralised Parts Division. This employed its fi rst fi eld representative and began operating an after hours service. Later the same year, Chrysler terminated its SA parts distributor, Motors Ltd, which had been CMV’s main opposition for Chrysler parts. This resulted in CMV taking on the full Chrysler parts distributorship at Franklin Street, including 20 staff from Motors Ltd. As a result of this development, CMV Parts extended its range of parts and extended its warehouse and under Mos Branson’s leadership the division grew substantially.

Another important development for the new leadership team, was the relocation of CMV’s main operation on South Road at Richmond. This was in the direct path of the ill-fated, north-south connector freeway, proposed by the State Government in the late 1960s. The uncertainty surrounding this ambitious freeway plan prevented CMV from extending this site and it was forced to sell its extensive facility on South Road and relocate to another premise. This led to the development of a brand new facility at Regency Park, named CMV Truck Sales & Service, which was offi cially opened in 1975 by the then Premier of South Australia, Don Dunstan. The facility included the Dodge and Fuso franchises, service and repair workshops for heavy duty trucks, a paint and panel workshop and a separate building dedicated to Kenworth sales, service

“Jim was always thankful to Sid for starting the company and for his own position within CMV. He was confi dent that somehow he would be able to keep the business going after Sid died. Jim had great confi dence in the people around him – he knew he couldn’t do it alone.”

– Josephine Crawford

CMV Parts Distributors at 217 Franklin Street in 1969

SlRwPfstb

“

–

Sid Crawford’s loyal offsider, Len Mulroney, was appointed Joint Managing Director with Jim Crawford in 1968.

19

FHALF CENTURY FOR CMV

Vic Mix Metroliner

and spares. At the time, CMV was one of the fi rst motor companies to develop facilities in Regency Park, which is now a major transport hub.

While CMV had been working hard to build the Kenworth and Volvo franchises, the demise of the Dodge and Commer trucks had begun, countered by the emergence of the Japanese Fuso trucks, that were soon to be sold under the Mitsubishi brand. During this period, Japan was emerging as a major supplier of passenger and commercial vehicles in Australia. Toyota was performing very well for CMV, both in four-wheel drive and light commercials, and this association led to CMV selling Hino trucks from the early ‘70s, including more than 100 vehicles to the Country Fire Service. The inclusion of Hino completed the full spectrum, from the heavy duty Kenworth and Volvo trucks, to the mid-range Mitsubishi, Fuso, Hino and Toyota, as well as the lighter Toyota and Mitsubishi vehicles. Sid’s dream to establish a company that was dedicated to the sales and service of commercial motor vehicles was fully realised.

HALF CENTURY FOR CMVA consequence of the success of the company selling a large volume of trucks, was the ability to profi tably market the trade-ins and the CMV Board decided to embark on a bold experiment to establish a stand-alone Used Truck operation. Land was purchased on South Road at Regency Park and a purpose-built display yard and sales and administration offi ces were established. In 1977, CMV Truckland was launched to appraise all potential trade-ins on behalf of CMV’s new vehicle dealerships and to purchase the trucks once the sale was fi nalised. The business, which was most likely an industry fi rst, experienced an initial fl urry of activity, but within fi ve years was struggling to make a profi t and in 1984 CMV Truckland was transformed into a dedicated dealership for CMI Hino, where it remains to this day.

In 1979, Chrysler Australia ended production of the long nose Dodge to make way for the Mitsubishi commercial line-up, signalling the end of an era in Australian-made trucks. Since 1963 and the introduction of the fi rst Dodge AT4s more than 44,000 Dodge trucks were sold in Australia.

After a period of tough trading conditions, Peter’s Diesel ceased operating as a separate company in 1980 and Volvo sales and service operations relocated to Regency Park, along with

Jim Crawford with a 1939 Dodge TE31 and a 1935 Diamond T 211 from the Jim Crawford Heritage Collection

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the Mitsubishi, Dodge and Kenworth brands. But improving economic conditions saw Volvo relocate back to an independent location at Gepps Cross in 1983, which was named Voltruck CMV. It transpired that Volvo management was less than impressed with the new trading name, which they considered to be a bastardisation of the Volvo brand, however, Voltruck began performing strongly in its new location.

UNDER JIM’S LEADERSHIP, CMV ENTERED A NEW ERA OF MANAGEMENT CHARACTERISED BY BURSTS OF ACTIVITY AS JIM DEMONSTRATED HIS EAGERNESS TO EXPAND THE COMPANY’S OPERATIONS AND PROFITS.

20

BUS TRAVELS BACK IN TIMETo commemorate CMV’s 80th anniversary, a special DVD was produced to tell the story from the Company’s beginnings in 1934 until the current day. A 1935 Diamond T bus, from the Jim Crawford Heritage Collection, was immaculately restored as part of CMV’s 80th celebrations. It played a starring role in the DVD, as it took the audience on a journey from Sid Crawford’s hometown in Warrnambool, through the Victorian dealerships to CMV’s headquarters in Adelaide. In the DVD, Directors Michael, David and Paul Crawford attempt to hitch a lift as the bus rolls through the countryside, however, the bus fails to stop and they are forced to walk all the way to Adelaide, arriving in a somewhat bedraggled state. Filming of the DVD lasted more than fi ve days and was interrupted by heavy rain, a bus breakdown and an old tractor that refused to start,

until it was eventually coaxed to life by Michael and Paul. Due to the unexpected acting talents

of the Crawfords, and the professionalism of the narrator Terry Rodgers, the fi lm

crew and production team, the DVD was a great success and

very well received by the audience at the 80th

anniversary dinners.

21

CELEBRATING 80 YEARS

AGROWING PAINS

GROWING PAINSBy the early 1980s, CMV had a clear strategy to focus on several key brands, which provided customers with a complete range of trucks suited to all applications. Jim was largely responsible for this renewed commitment to the sale of commercial vehicles, which resulted in CMV expanding its market share to become a major player in this sector. In 1984, when CMV celebrated half a century in business, it accounted for 25% of all new commercial vehicles sold in South Australia.

Despite all the progress, the 1980s proved a diffi cult decade for CMV, as it embarked on several new ventures, which veered from the company’s main business of commercial vehicles. Jim thought these ventures were examples of “enthusiasm clouding our better judgement”. They brought little or no benefi t to CMV and most of them were quickly abandoned, including Kingcraft Hand Tools, Mills (Australia) Pty Ltd and New Products Engineering. Watts Transport, which was a specialist supplier of spare parts

22

BUSES A ‘BAD HOBBY’One of CMV’s biggest distractions at the time, came about as a result of Jim’s love of buses and very keen interest in running a bus company. Keith Skopal described this as a “bad hobby”. In 1979, Jim negotiated to merge with Briscoes Charter Services, which operated tour and charter work and provided passenger services between Adelaide and Mount Barker. Briscoes operated as a wholly owned subsidiary of CMV and expanded its tour operations and its Mount Barker service, as well as taking over Premier Roadlines’ services to the Barossa Valley and Yorke Peninsula. Over the next few years, the Briscoes fl eet expanded to some 30 vehicles and soon accounted for 60-70% of South Australia’s snow tour market. According to Keith, Jim persisted with his dream to take over bus companies and in doing so, dug the company in deeper and deeper, with less than satisfactory results. After merging with Ansett-Pioneer in 1982, purchasing a travel agency and investing heavily in the construction of the Sundance Hotel at Falls Creek, as well as an established hotel/

From 1983 to 1989, CMV was the Australian wholesaler for Kingcraft hand tools

In the early 1970s, CMV subsidiary, Briscoes Charter Services, conducted more than 60% of South Australia’s snow tours

IN 1984, WHEN CMV CELEBRATED HALF A CENTURY IN BUSINESS, IT ACCOUNTED FOR 25% OF ALL NEW COMMERCIAL VEHICLES SOLD IN SOUTH AUSTRALIA.

and accessories for trailers, was the sole success story. Later renamed Watts Friction Plus Australasia, the business celebrated 40 years in 2013, and today, is a major supplier of a range of products to truck manufacturers in Australia and New Zealand.

GROWING PAINS

The all new C-Class

23

motel in Wangaratta, Jim fi nally conceded defeat. In 1987, Briscoes merged with Bus Australia. While CMV remained a shareholder, its direct involvement in buses came to an end when Bus Australia moved out of its Regency Park facility in 1989.

INTERSTATE EXPANSIONAfter surviving the ups and downs of the 1980s and with the experience of several unsuccessful investments behind it, CMV began to focus on consolidating its motor vehicle businesses in South Australia and duplicating them interstate. This led to an aggressive campaign to invest in commercial vehicle dealerships in the eastern states. CMV knew this business better than most, but breaking into new markets was never going to be easy. Despite some early setbacks and signifi cant losses, CMV persevered with its strategy to mirror its commercial vehicles operations in SA, by representing the same franchises in Victoria. It was an exciting time for CMV, when in 1988, it purchased its fi rst interstate business – the Riverina Truck Centre in Wagga Wagga in NSW. The dealership sold Kenworth trucks and traded well until the 1990 recession, which ravaged the heavy truck industry across Australia. The recession signifi cantly affected trading and in 1992, a Volvo truck

franchise was added to the dealership in an attempt to return it to profi tability. The dealership reverted to a sole Kenworth outlet after several years, but in 1999 CMV made the decision to sell the business to concentrate its expansion efforts in major metropolitan markets.

In 1989, CMV purchased its second interstate truck dealership, this time in Melbourne. VTC Truck and Bus at Campbellfi eld, was renamed CMV Truck and Bus and continued to sell Volvo trucks, as well as service them and provide spare parts. In 1992, a Hino truck franchise was added to increase the dealership’s product coverage in the Melbourne market. The ZF franchise was also introduced to support Volvo bus customers and add incremental parts and service sales volume.

TOYOTA CHANGESIn 1988, CMI Toyota was distributing more than 3500 vehicles a year (a total of more than 40,000 vehicles since 1963), when Toyota announced it was going to begin direct distribution to its dealer network in South Australia. The Toyota commercial vehicle distributorship had been an extremely profi table contributor to CMV for 25 years and the termination had a signifi cant impact on CMV’s profi tability. Paul Crawford described it as “a very signifi cant and

catastrophic loss for the Company…which after 27 years, left us, with infrastructure, a highly developed computer system, human resources and dedicated properties for which we now had no use, and at a time when the overall economic climate was very unfavourable.”

To help ameliorate the loss, Toyota agreed that CMI could retain the Parts distributorship for a further three years. Faced with the unviable option of being a retail dealer for Toyota, CMV sought to secure the Toyota passenger car franchise and closed a deal with Tony O’Grady to purchase the Toyota Car Centre on West Terrace. Although car dealerships were intensely competitive and notoriously unprofi table, CMV was confi dent that a combined Toyota car and commercial retail dealership, operating from one site, would have greater appeal to the consumer and therefore a greater likelihood of succeeding. As a result, the commercial dealership at Flinders Street was merged into the Toyota Car Centre site on West Terrace. This was the fi rst time CMV had been involved in the retail car industry since it sold Humber and Hillman cars from 1954 until 1966. It proved to be an excellent decision, with the dealership evolving to become the State’s largest and most successful Toyota dealership.

AFTER SURVIVING THE UPS AND DOWNS OF THE 1980S AND THE EXPERIENCE OF SEVERAL UNSUCCESSFUL INVESTMENTS BEHIND IT, CMV SHIFTED ITS FOCUS TO CONSOLIDATING ITS MOTOR VEHICLE BUSINESSES IN SOUTH AUSTRALIA AND DUPLICATING THEM INTERSTATE.

24

CHALLENGING TIMES These fi rst few years of expansion into interstate markets produced many challenges for CMV. In many ways, the company was still reeling from the loss of the Toyota distributorship and the lessons learned from investing in Mills and NPE. In addition, Jim’s divorce was creating challenges for the management team. According to Director David Meyer, these events were a “baptism of fi re” for himself and Michael and Paul who had all recently joined the Board. “There is no doubt this period turned out to be a very expensive learning curve. I used to suggest to Paul and Michael that we had completed our own MBA course during these particularly tough years,” David said.

As Jim had predicted, trading soon improved and after three years operating in very tough economic conditions, CMV was back on track. In 1993 it further consolidated its position in the Melbourne truck market when it acquired the Volvo-owned dealership in Clayton, which operated from a sub-

CHALLENGING TIMES

STAFF SHAREHOLDING SCHEMEIn 1991, the Board abandoned the Staff Shareholding Scheme and CMV bought back the remaining shares. The decision followed a diffi cult trading time and the scheme failed to pay a dividend one year during the recession, leading to negative criticism from some employees who were accustomed to receiving annual dividends.

In an address to staff during the recession in 1992, Jim conceded the business was going through a very tough time.

“We have been through the worst downturn in our business in the 58 years since CMV was formed, but we are survivors. We are still here. We’ve been badly bruised. We’ve lost a lot of money over the last two years. We have joined hundreds of other Australian companies, particularly those in the motor industry, who have found the going extremely rugged and have given up or gone broke, but we are not about to give up…Whilst we hope that there is now some light at the end of the tunnel, it will be a relatively slow return to a more prosperous society and so we are still going to suffer for the next 12 months or more. I am sorry that in the year just fi nishing, we will not have made a trading profi t, in fact we will lose about $500,000 for the year. But last year we lost $1.5m so the steps we have taken, many of them painful, have seen a signifi cant reduction of that very serious loss situation of 1990/91.”

standard property rented from a paint company. Shortly after taking on the business, CMV made the decision to relocate the operation to a more modern facility and purchased land nearby. The new facility was offi cially opened by Jim Crawford and Claes Svedberg, from Volvo Trucks Australia. It was one of the last offi cial duties that Jim performed before his death in October later that year and so it was a particularly memorable moment when Jim was presented with a G88 Volvo which had been fully restored by the staff of CMV Truck and Bus.

THESE FIRST FEW YEARS OF EXPANSION INTO INTERSTATE MARKETS PRODUCED MANY CHALLENGES FOR CMV.

In a very emotional ceremony, Jim Crawford was presented with a restored G88 Volvo for the Jim Crawford Heritage Collection. Upon accepting the keys to the truck, Jim commented, “have log book, will travel”, which has become a much-loved phrase, often used by Jim’s family today.

25

THIRD GENERATION

THIRD GENERATIONBack in 1959, Sid had appointed Keith Skopal to the position of assistant to the Secretary, little knowing what an important infl uence Keith would have over the next 40 years. Keith was “a brilliant accountant and strategist” and went on to become Secretary, Chief Accountant and Director from 1966 until 1991. He was a respected mentor for Jim, and subsequently Jim’s three sons, and helped establish them in roles within CMV to which they were well suited and qualifi ed. By the early 1980s, Jim was devoting more and more time to community work and relied on his loyal team, particularly Keith, Mos Branson and Bob Boxall, to run various divisions. He also actively encouraged the involvement of his sons, Michael, David and Paul, adamant that he would not do what his father had done by leading the company up until the day he died.

Jim felt strongly that working at CMV was not an automatic “right of succession” for his children, and they needed to complete a tertiary education and serve their apprenticeship, before taking on leadership roles within the company. Michael and Paul required no encouragement, having had a keen interest in motor vehicles from a very young age. In their own words, “Dad didn’t have to encourage us to be interested in the business, we were ready made material.” After graduating from Brighton High School, Michael completed an Economics degree at Flinders University, while continuing to work at CMV in his spare time. After working in the public service in Canberra for a short period, Michael returned to Adelaide in 1971 to work for CMV. He was involved in introducing computers to the Parts division, and learned the ropes in several other areas of the business, before being appointed as General Manager of CMV Truck Sales and Service at Regency Park.

JIM FELT STRONGLY THAT WORKING AT CMV WAS NOT AN AUTOMATIC “RIGHT OF SUCCESSION” FOR HIS CHILDREN, AND THEY NEEDED TO COMPLETE A TERTIARY EDUCATION AND SERVE THEIR APPRENTICESHIP, BEFORE TAKING ON LEADERSHIP ROLES WITHIN THE COMPANY.

Like Michael, Paul had spent a large part of his youth around the CMV workshops and eagerly awaited Jim’s daily rundown of trucks sales and service updates. As they got older, Michael and Paul spent their Saturday mornings working in spare parts and cleaning trucks, and once they had obtained driver’s licences, they were able to collect trucks from interstate. After completing an Engineering degree, Paul worked for Kenworth in Melbourne, ZF in Germany and then Volvo Bus in Sweden. He began his fi rst permanent job with CMV at Watts Transport, before moving to Voltruck, then CMI Toyota, where he worked closely with Bob Boxall. In 1986, Michael and Paul were appointed Associate Directors, enabling them to gain valuable experience on the CMV Board.

Michael Crawford hands over the keys of a new FV458 Mitsubishi tipper to Joe Giannini from Giannini Bros.

Left: Michael Crawford, aged 4 yearsMiddle: David Crawford, aged 4 yearsRight: Paul Crawford, aged 2 years.

26

THIRD GENERATION

Although surrounded by a family involved in the automotive business, David Crawford’s interests were always much more aligned to farming and animals. He attended Urrbrae High School to enable him to pursue his interest in agriculture and could not see himself joining the family business. Upon leaving school, David spent some time jackarooing with the Scottish Australia Company, before winning their annual scholarship and completing a diploma of Farm Management at the Marcus Oldham Agricultural College in Geelong. He worked at CMI Toyota as a driver in the Parts Division in between jobs, before being approached by Keith Skopal in 1978 to investigate the possibility of CMV diversifying into agriculture. David was responsible for the establishment of the new Agricultural Division, known as CMV Farms, to which he was appointed Director in 1991, joining his brothers at the Board table.

With Jim’s support, Keith saw to it that the third generation of Crawfords was exposed to all aspects of the business operations and prepared to step into management roles when Jim retired. This came about sooner than expected as Jim, by his own admission, was devoting more and more time to community work. In 1987, Michael and Paul left their respective roles at Regency Park and moved to head offi ce at Flinders Street. Jim retired as Managing Director the following year, with full confi dence that Michael and Paul would continue to build the company in their new roles as Joint Managing Directors.

Shortly after the announcement that he and Michael would serve as Joint Managing Directors, Paul wrote these words in a staff newsletter.

“I guess simply the fact that Mike and I believe that it will take a team of people to replace our father speaks volumes for our respect for his contribution and leadership over the last three decades. At the risk of labouring the point a little, I think that you’d all agree that it’s going to be a pretty tough act to follow. Of course there is no alternative, we must follow the act and I know that by working together we can. We will have a couple of very keen and enthusiastic observers in Keith and Dad and probably a little barracking from the sidelines if we screw up.”

Amongst the important mentors for the three young Crawfords were Bob Boxall, Mos Branson, Neil Sarah, Bruce McDougall, David Meyer, and Keith Skopal.

By 1982, Paul, Michael and David all worked alongside their father, Jim, at CMV.

WITH JIM’S SUPPORT, KEITH SAW TO IT THAT THE THIRD GENERATION OF CRAWFORDS WAS EXPOSED TO ALL ASPECTS OF THE BUSINESS OPERATIONS AND PREPARED TO STEP INTO MANAGEMENT ROLES WHEN JIM RETIRED.

Like his father, Jim’s service to the community was exemplary. He had much to offer in skills and energy and devoted a signifi cant amount of time to community organisations. Jim put his heart and soul into his extra-curricular roles and even chided himself for neglecting his duties at CMV as he immersed himself in civic duties for the Brighton and Adelaide City Councils, as well as several Rotary Clubs and as Chairman of the Libraries Board of SA. Jim also served as a member of several key government and industry boards over many years and earned an enormous amount of respect for his ability to deal with people from all walks of life in a fair and diplomatic manner. At his father’s retirement, Paul commented on this characteristic. “Perhaps my father’s most special skills lie in his people skills. He has the ability to communicate with almost anyone at their own level. In his business life, as well as his public life, he has had the unique skill of being able to put people at ease. He is as happy (perhaps happier) conversing with an old truck client as he is with the Lord Mayor or the Premier!...His sense of right and wrong and his philosophy of combining a business and community life is an inspiration to us all.”

In 1979, Jim was recognised for his services to the community with an Order of Australia, and for the next 20 years he continued to work tirelessly to improve library, kindergarten and council services for the benefi t of South Australians. Jim’s death in 1999, was felt not only by his family and the staff at CMV, but by the wider community in which he had played such an active part. His contribution to the transport industry and libraries were immortalised with the establishment of two signifi cant awards, established by CMV in his honour. The fi rst was the Jim Crawford Driver of the Year award (later renamed the Jim Crawford Employee of the Year award), which is presented at the annual SA Road Transport Association’s

27

COMMUNITY MINDED

awards dinner. The second, is the Jim Crawford Award for Innovation in Libraries. This annual award acknowledges an individual or groups working in public libraries in SA who have made a signifi cant contribution to innovation within the library system.

JIM CRAWFORD HERITAGE COLLECTIONJim had a great passion for vintage vehicles of all shapes, sizes and models and, a particularly soft spot for Case tractors, Diamond T trucks and buses and Commer trucks, because of their signifi cant contribution to CMV in its formative years. It all started with a restoration project in which Jim bought one of the fi rst Diamond T trucks ever sold in South Australia. As part of CMV’s 50th anniversary celebrations, this vehicle, which was still being used as a farm truck, was bought by CMV and restored in the hope that it would become the founding member of an historic vehicle collection. That was the start, of what would become one of Australia’s most impressive collection of historic vehicles, immortalised in the Jim Crawford Heritage Collection, which now includes more than 50 trucks, tractors, cars and buses.

Jim Crawford inspects another potential restoration project – a Diamond T Model 306.

"RUMOUR HAS IT THAT IF JIM PURCHASED

ANY MORE OLD VEHICLES, HE MAY

HAVE BEEN FORCIBLY RESTRAINED BY HIS

THREE SONS."

28

In 2002, the Hallam Truck Centre opened a parts & service division at Bayswater to service customers in that region and the following year Hallam was granted the DAF truck franchise. Kenworth’s parent company, Paccar, had purchased the DAF truck business in Holland and was responsible for bringing its range of trucks to Australia in the late 1990s. In 2004, CMV embarked on a major expansion for Hallam, building a new multi-million dollar sales, service and parts facility within close proximity to the old dealership. The new facility was built to stand the test of time, with the latest diagnostics equipment in the service area, a spacious spare parts supermarket and sleeping rooms and amenities for drivers.

MELBOURNE MOVES

MELBOURNE MOVESThe development of the new dealership at Clayton was CMV’s most signifi cant investment in a truck dealership up until that time, but it paid off as the business traded even more successfully from the day it relocated. CMV had well and truly consolidated its position in the Melbourne truck market, but continued to push on and in 1999, purchased the Hallam Truck Centre which held the Kenworth and Mitsubishi franchises for the eastern side of Melbourne. The same year, CMV also announced plans to build a new Mitsubishi/Volvo dealership at Laverton in Melbourne’s western suburbs to allow for the relocation of the Campbellfi eld dealership to a more desirable geographic location closer to CMV’s traditional customer base and potential fl eet customers. CMI Hino remained at Campbellfi eld as a stand-alone franchise, but in 2001, CMV made the diffi cult decision to relinquish the Mitsubishi franchise and relocated Hino to Laverton. The Volvo/Hino operation at Laverton went on to be one of CMV’s strongest and most vibrant dealerships, with signifi cant bus activity from both Volvo and Hino adding to the already strong truck sales, parts and service operations.

In 1999, CMV Truck and Bus Clayton opened a new Contracts Division to provide contracted fl eet maintenance services to larger customers, such as Bonlac (now known as Fonterra). Since then, other major customers have entrusted CMV with the servicing of their fl eets, many of which include hundreds of trucks and trailers. By 2014, the Contracts Division had doubled in size, with more than 80 staff operating from 19 different locations in every state of Australia. In total, CMV’s Contracts teams were responsible for the contracted maintenance of more than 2500 trucks, trailers, terminal tractors and rail containers for several major fl eet customers.

.

A fl eet of Volvo FM460 prime movers, ready for delivery to a major customer

LOSING PARTSFor many years, CMV Parts Distributors had been a major contributor to CMV’s prosperity and had been Chrysler’s number one parts distributor in Australia. In 1980, Japanese giant, Mitsubishi Motors, assumed control of Chrysler Australia Limited and later decided to undertake its own wholesale distribution of parts in SA. This led to the devastating closure of CMV Parts Distributors in 1993, after almost 40 years, which forced the company to lay off many long-serving employees. At the time Jim delivered the following message to CMV staff at the annual speech night. “From the company’s point of view, the loss of Mitsubishi is a serious blow, because it has always been a very signifi cant contributor to the Group’s profi ts. We now have to try and fi nd some alternative activity that will make up for the loss of CMV Parts and that’s an area which we are currently investigating with great vigour.”

29

MAJOR DEVELOPMENTS

MAJOR DEVELOPMENTSWhile CMV’s new operations in Victoria gained momentum, the existing truck sales and service businesses in South Australia were also growing. Trucks sold by the combined CMV companies accounted for an estimated 40% of trucks sold in the State. CMV Truck Sales and Service at Regency Park also incorporated Freighter Trailers, CMV Dismantlers and Watts Transport Industries, adding further value for customers. By the late 1990s, Kenworth had become the market leader in heavy duty trucks in Australia and CMV had made a signifi cant contribution to this result, having sold hundreds of trucks over a 30-year period. By this time, CMV Truck Sales and Service had outgrown its Regency Park site which had served the business well for 31 years. In 2006, construction work began on a 12-acre greenfi eld site at Cavan to accommodate the business, with the addition of DAF trucks. DAF was a sister brand to Kenworth, and Paccar Australia awarded the dealership to CMV in 2007 in time for the opening of the new facility. The multi-million dollar investment was completed in perfect time to take advantage of the buoyant truck market and the new facility immediately generated benefi ts for customers, staff and the CMV Group.

In 2006, Voltruck CMV changed its name to South Central Trucks (SCT), after CMV was awarded the Mack Truck franchises for Adelaide and Melbourne. The new Mack dealerships, which complemented the existing Volvo Truck and Bus dealerships, came about through CMV’s 35-year association with Volvo Trucks which purchased Mack Trucks in 2000. From this time on, the Volvo dealership at Gepps Cross traded as SCT – Volvo, while the new Mack dealership at Cavan traded as SCT – Mack. In Melbourne, Mack dealerships were located at Laverton and Dandenong, and CMV was also able to take over the Volvo and Mack franchise rights in the neighbouring Gippsland territory. This dealership initially operated from Warragul, but later relocated to a more central location at Traralgon in 2008

In 2009, UD Trucks joined stablemates Volvo and Mack at CMV dealerships in Traralgon, Dandenong and Laverton, and the following year they were introduced to the SCT dealership in Adelaide and to the dealership in Albury Wodonga. Medium and heavy-duty UD Trucks arrived in Australia in 1973 and quickly earned a reputation for being a strong and reliable vehicle. In 2006, UD became part of AB Volvo (now the Volvo Group) and proved to be an excellent fi t with Volvo and Mack.

CMV realised a long-held dream when in May 2007, CMV Truck Sales moved into its new premises at Cavan, South Australia

CMV Truck and Bus Dandenong hands over another new UD truck to a major customer

‘BETHANKFUL’For many years, CMV’s Parts division stood out amongst all other divisions when it came to longevity of service. Therefore, it came as no surprise that upon retirement, several employees from this division continued to catch up on a regular basis and were responsible for the establishment of the Bethankful Club for former employees of CMV. The Club was named after CMV’s telegraphic code name from 1934. To acknowledge his gratitude to those friends who helped him establish CMV, Sid selected the telegraphic name “Bethankful”.

MAJOR DEVELOPMENTS

In 2011 and 2012, CMV reluctantly relinquished two franchises as a result of management decisions by the parent companies of Fuso and Freighter Trailers. Fuso’s ultimate owners, Mercedes-Benz, aggregated their truck brands in South Australia onto one site, breaking the arrangement with CMV and ending its 70-year association with Fuso and its predecessor brands of Mitsubishi, Dodge and Commer. CMV retained the Fuso dealership at the Hallam Truck Centre in Melbourne. Similarly, the MaxiTRANS Group made the decision to represent its entire product range through a retail outlet in Adelaide, forcing CMV to give up the trailer franchise which had been very convenient for its customers over 30 years.

The success of CMV’s major new facility at Cavan, paved the way for another signifi cant development, with the announcement that a new purpose-built Mack/UD/Volvo facility would be constructed at Wingfi eld, on the site previously occupied by CMV Dismantlers. The merging of the three truck brands mirrors the Volvo Group’s strategy to standardise common components and market the three brands as a complementary truck range that will satisfy virtually every application.

Other major investments included a new facility for CMV Truck & Bus Albury/Wodonga, offering excellent access from the Hume Highway and providing state-of-the-art facilities for customers and employees. The Bayswater Truck Centre also benefi ted from relocating to a new premises, just a few hundred metres down the road. This facility provides a safer and more modern work environment, as well as an attractive truck display and an expanded parts department. CMV Truck & Bus Laverton opened a new, dedicated Volvo bus service centre at the rear of the existing CMV Truck & Bus Mack/UD dealership, with a fully equipped workshop capable of handling service, repairs and pre-delivery.

30

In 2015, this new combined Mack/UD/Volvo facility at Wingfi eld, will be another fl agship dealership for CMV in South Australia

The latest in CMV’s string of proposed developments is a major new dealership that will be built on Mt Derrimut Road in Melbourne, to bring together CMV Truck & Bus, Mack/UD/Volvo, as well as the Technical Training Centre

In 2013, Mack Trucks celebrated its 50th year in Australia, and CMV’s Mack dealerships in Adelaide and Melbourne hosted special customer events to mark the occasion. The iconic brand is a familiar site on Australian roads and CMV has been a signifi cant contributor to its success, selling and servicing Mack trucks across fi ve separate dealerships. To commemorate its 50th milestone, Mack released 30 limited edition Southern Cross Superliner and Titan trucks and CMV was honoured to sell 12 of these, more than any other dealer in Australia.

CMV TRUCK & BUS LAVERTON OPENED A NEW, DEDICATED VOLVO BUS SERVICE CENTRE AT THE REAR OF THE EXISTING CMV TRUCK & BUS MACK/UD DEALERSHIP

31

FCRAZY ABOUT CARS

In 1995, CMV purchased a warehouse and offi ce building on Wright Street in Adelaide and relocated CMI Toyota Parts from Regency Park, as well as refurbishing the fi rst fl oor to house CMV Group administration. It proved to be a very convenient location and remains CMV’s headquarters today.

CMI TOYOTADuring the 1990s, the CMI Toyota operation expanded in all directions, with CMI Used starting up on a leased property on Main North Road in 1992 and recording a profi t almost immediately. CMV also purchased Goodall Subaru at Hillcrest, but the franchise was relinquished after fi ve years and the site transformed into another CMI used vehicle outlet. In 1994, the Toyota Motor Company presented Paul Crawford with a 30-year plaque recognising CMI Toyota as the oldest established Toyota dealership in South Australia. With three decades of trading Toyota under its belt, CMI Toyota added a string of strategically located suburban branches to supplement business at its main city-based operation on West Terrace. In 1995, a property was purchased in Stepney and CMI Eastside was established as a satellite service centre for the convenience

of customers from the eastern suburbs. Then in 1997, the company acquired Brian Phillis Toyota at Christies Beach, which was renamed CMI Southside. Nearly 10 years later, CMV announced the acquisition of Marion Suzuki which was relocated to Christies Beach and began trading as Southside Suzuki from 2006. The same year, Toyota encouraged CMV to purchase the Toyota dealership on Port Road at Cheltenham, which commenced trading as CMI Portside.

During this decade, CMI Toyota established itself as the number one Toyota dealership for passenger and commercial vehicles sales in South Australia. In a highly competitive market, CMI Toyota repeatedly proved its ability to produce innovative and results-driven marketing campaigns which contributed signifi cantly to its soaring sales fi gures. Notably, the CMI-ling commercials which aimed to differentiate CMI Toyota from other Toyota dealerships had enormous success and are still being adapted and run today. In 1991, Toyota became the foundation sponsor of the newly formed Adelaide Crows. The popularity of South Australia’s fi rst AFL team was clear from the outset and CMI Toyota was able to ride the wave of the “Camry Crows”.

CMI Portside opened in 2007

CRAZY ABOUT CARSIn 1994, CMV expanded its motor car interests, by acquiring the assets of Adelaide 4WD & Commercial Centre on Main North Road, as it saw potential to fulfi l a niche market as a used 4WD specialist. As part of the negotiation, CMV secured the new Chrysler Jeep franchise for the Adelaide metropolitan area. The Jeep brand was about to be relaunched into the Australian market after an absence of 20 years. The new business, Adelaide City Chrysler Jeep, was one of the fi rst Jeep dealerships established in Australia and the only one in SA. It was a risky strategy, but Jeep activity was supplemented with good sales in used 4WDs, and in 1997 the dealership underwent a major development, after which it continued to grow strongly. The Jeep range was joined by a variety of Chrysler passenger vehicles and later selected dramatic Dodge models. For a short time between 2009 and 2014, CMV also operated a Great Wall dealership from the same site, offering a range of lower priced utes and compact SUVs from China’s leading independent car maker. However, the price advantage was soon eroded as the established brands sharpened their pencils, and CMV reluctantly relinquished the franchise.

CMV’s Adelaide City Chrysler Jeep Dodge dealership on Main North Road, Prospect

32

CRAZY ABOUT CARS

LUXURY LEXUSInspired by the success of its CMI Toyota motor car dealerships, CMV entered the luxury car market in 1997, with Lexus, the luxury brand of the Toyota Motor Corporation, which had only been introduced into Australia in 1990. Lexus brought with it a whole new approach to design, manufacture, marketing, selling and after-sales support.The Lexus philosophy was to set new benchmarks in customer purchasing, driving and ownership experience. Stringent requirements accompanied the Lexus franchise, including the purchase and refurbishment of an existing used prestige car showroom on West Terrace adjacent to CMI Toyota. Lexus of Adelaide fl ourished with the growing Lexus model range and new customers attracted by the product quality and innovative level of customer care.

By 2007, CMV had laid down the blueprint for its most ambitious and largest capital project in 75 years, which was to develop a new CMI Toyota multi-level showroom, workshop and administration facility. This covered the combined properties occupied by Toyota and Lexus. In preparation for this, Lexus moved to a temporary home at Parkside.

The culmination of the project was not just one, but two new world-class facilities for Toyota and Lexus, in close proximity on West Terrace. CMI Toyota’s spectacular, multi-level showroom and workshop was offi cially opened in 2010, setting new standards in sales, service and after sales support, as well as improving safety and productivity. An outstanding feature of the new facility is the positioning of its glass-walled workshop at the front of the dealership, giving it equal billing with the showroom and allowing the public to see directly into the workshop from

CMI Toyota’s new multi-level showroom has set new standards in sales, service and after-sales support.

street level and watch the technicians at work. The building incorporates many sustainable design features to reduce energy consumption, including solar hot water systems, exhaust extraction, intelligent lighting and signifi cant rainwater storage capacity in excess of 800,000 litres.

INSPIRED BY THE SUCCESS OF ITS CMI TOYOTA MOTOR CAR DEALERSHIPS, CMV ENTERED THE LUXURY CAR MARKET IN 1997, WITH LEXUS, THE LUXURY BRAND OF THE TOYOTA MOTOR CORPORATION, WHICH HAD ONLY BEEN INTRODUCED INTO AUSTRALIA IN 1990.

The new Lexus showroom on West Terrace was offi cially opened in 2012

33

CRAZY ABOUT CARS

The impact of the new facility has been to further cement CMI Toyota’s position as the number one car dealership in South Australia, with strong market representation. Paul Crawford says it is a wonderful facility that CMV is extremely proud of. “Despite its small beginnings, our partnership with Toyota has been a shining light for CMV. The bold decision to take on the South Australian wholesale distributorship back in 1963 has been a real foundation stone for CMV and our ongoing relationship with Toyota is critically important.” Just a few steps along West Terrace, the new Lexus showroom which was offi cially opened in 2012, is equally impressive. It offers customers a remarkable level of comfort and amenity, in a contemporary showroom that complements the luxury vehicles on display.

The Mercedes-Benz Adelaide showroom on Sir Donald Bradman Drive in South Australia

MERCEDES-BENZ ADELAIDEWhile the Automotive division was largely focussed on the construction and opening of the CMI Toyota and Lexus facilities, it found time to embark on a new chapter, with the acquisition of Mercedes-Benz Adelaide in July 2012. This has provided the company with the opportunity to expand further into the prestige passenger vehicle market, with one of the world’s most respected and iconic brands. The Mercedes-Benz Adelaide showroom is located on Sir Donald Bradman Drive at Mile End. CMV also welcomed 65 new employees to the company, who have settled in well under the leadership of General Manager David Upton.

THE IMPACT OF THE NEW FACILITY HAS BEEN TO FURTHER CEMENT CMI TOYOTA’S POSITION AS THE NUMBER ONE CAR DEALERSHIP IN SOUTH AUSTRALIA

34

A NEW VENTURE

A NEW VENTUREIn 1979, under the guidance of Keith Skopal, CMV began investigating the potential to diversify into agriculture. Keith saw this as an opportunity for David Crawford to become involved in the business and entrusted him with conducting “research of economically attractive alternative agricultural products suited to SA”. After an initial “experiment” with jojoba on the West Coast of South Australia, CMV set up a partnership with Adrian and Virginia Lacey who were experienced almond growers. The Olney Syndicate, as the partnership was known, purchased 200 hectares of land at Lindsay Point, in north-western Victoria, some 25km east of Renmark. Part of the property’s vineyard was retained and the grapes sold to Seagram under a fi ve-year supply contract to generate cash fl ow until the fi rst almond harvest in 1985. Neighbouring properties were added in 1988 and 1994, to bring the total planting to 364 hectares of almonds.

In 1983, CMV purchased a 260ha property at Robinvale, also in Victoria, and David and his team set about developing a 130ha pistachio tree orchard. The property, known as the Home Block, had previously been run as a vegetable farm, and David and his family, as well as seven full-time staff, continued to grow and sell vegetables through wholesale markets in Melbourne and Sydney. CMV purchased a nearby property from a farmer called McGinty to expand its vegetable production. During this seven-year wait for the

fi rst pistachio crop, CMV also started a partnership called Golden Chip Potatoes, which specialised in growing potatoes for the crisping industry. Growing pistachios proved to be a huge learning curve. During this period a strong relationship was formed with Chris Joyce, a Sydney based nut trader who was having similar diffi culties developing a pistachio orchard at Kyalite in NSW, about 100km south east of Robinvale. Once the pistachios came into production, Chris and CMV formed a partnership known as the Australian Pioneer Pistachio Company (APPC) to process and market their combined pistachio crop. The fi rst crop in 1992, produced three tonnes, and today the combined pistachio orchards are producing more than 2000 tonnes.

CMV has enjoyed a long and lucrative partnership in pistachios with Chris Joyce, pictured, who was awarded a Lifetime Achievement Award by the International Nut Council in 2014

Jim Crawford with some young pistachio trees prior to planting at Robinvale.

IN 1983, CMV PURCHASED A 260ha PROPERTY AT ROBINVALE, ALSO IN VICTORIA, AND DAVID AND HIS TEAM SET ABOUT DEVELOPING A 130ha PISTACHIO TREE ORCHARD.

WINEGRAPESAs the almonds and pistachios came into production, David proposed a new venture in viticulture, as he saw the McGinty property at Robinvale, as an ideal site to develop a vineyard. A 10-year supply contract was negotiated with Southcorp Wines and 40ha of winegrapes were planted. CMV had entered the wine industry at exactly the right time, and the fi rst crop from the McGinty vineyard produced 15 tonnes an acre, which was sold for $1000 a tonne. The forecasts,

Pioneers of the California and Australian pistachio industry: Ken Puryear, Corky Anderson (Pioneer Nursery, California) David Crawford, Chris Joyce; California November 2014.

35

FALMONDS, PISTACHIOS AND WINEGRAPES

A tree mulcher

which the Board had previously suggested were “too good to be true”, had only predicted 11 tonnes an acre at $650 a tonne. Vacant land on the Home Block was also planted to vines under contract to Southcorp, bringing the total area planted on this property to 130ha of vines and 125ha of pistachios.

Due to the good outlook for winegrapes and favourable discussions with Orlando Wyndham, CMV decided to further expand its viticultural interests and in 1997, purchased a 275ha property at Langhorne Creek in South Australia. This project involved the construction of a 13-kilometre pipeline from Lake Alexandrina to a large dam on the site. The fi rst vines were planted in the spring of 1998 with progressive plantings occurring over the following years. In 2003, CMV purchased yet another substantial property in Robinvale and planted 160ha of winegrapes under contract to Orlando Wines. This property was named Josephine’s Vineyard in recognition of Jo Crawford’s contribution to the CMV Group.

By 2014, CMV Farms had outlined a strategy to reduce its investment in hot climate winegrape production, due to the continued depressed sate of the Australian wine industry. This led to the sale of the Murtho property and the decision to also put Josephine’s Vineyard on the market. The company’s winegrape interests have now been consolidated in Langhorne Creek, where the enterprise is following a similar path to the nuts operations, with a push into value adding. In conjunction with Project Wine, CMV Farms now produces wine for the domestic and export markets, via a strong relationship with a Chinese consortium where wine under the Shearer’s Hill label is sold directly into China. “Our strategy is to develop other market options rather than being solely dependent on wine companies,” David says.

In 1989, the Olney Syndicate joined Lemilet (later incorporated into Laragon), which was a syndicate of growers with an almond hulling and shelling operation at Lindsay Point. With an annual almond crop of 400 tonnes, Olney wanted to take control and directly manage the marketing of its almonds, so it formed a joint venture, known as Excel Almonds, with several other almond growers. Excel was one of the fi rst almond marketing businesses to convince supermarkets to stock almonds in the fresh fruit and vegetable section, rather than in the cooking section, which was a signifi cant development for the industry. In 1996, Excel was renamed Riverland Almonds and moved into a purpose-built plant in Loxton.

Later, in 1998, the Olney Syndicate purchased an additional 80ha at Murtho in South Australia and planted 40ha of almonds. It also planted 36ha of winegrapes, after negotiating a 10-year supply and price contract with Peter Lehmann Wines. A further 40ha was purchased in 2000, which was also planted to winegrapes. In 2002, Adrian Lacey decided to retire and sold his share of the Olney Syndicate to CMV.

In February 1999, CMV held the offi cial opening of its vineyard development at Langhorne Creek. Jim was asked to do the honours and unveil a sign, naming half of the property “Sid’s Run” in honour of his father. In great secrecy, another sign was arranged to name the other half of the property “Jim’s Block”. According to Director David Meyer, when Jim unveiled the second sign, he was quite overcome.

“Such was his modesty it never occurred to him that anyone would have thought to do that. A large number of his family were there and he was so proud. It was a big moment.”

Jim Crawford surrounded by his grandchildren at the naming of “Jim’s Block” at Langhorne Creek in 1999. Pictured, from left, (standing) Angus, Madeleine, Miles, Jonathan, Heidi, Daniel, (sitting), Chloe, Liam, Samuel and Pippa.

CMV Farms now produces its own wine which is sold under the Shearer’s Hill label in China

David Crawford and Adrian Lacey in front of the almond harvest of 2002.

36

PARTNERSHIPS & GROWTH

In 2004, a decision was made to amalgamate the processing and marketing operations of Riverland Almonds (co-owned by CMV and Century Orchards/Jubilee Almonds) and APPC (co-owned by CMV and Chris Joyce), resulting in the formation of a new entity known as Nut Producers Australia (NPA). NPA is responsible for the processing plants at Loxton and Robinvale and the marketing of pistachios and almonds from an offi ce in Adelaide. By 2014, NPA was the largest pistachio producer and marketer in Australia, responsible for supplying 95% of Australian pistachios, and it was also a signifi cant processor of almonds. NPA has also developed a signifi cant nut trading business to increase market opportunities and generate additional revenue streams for its shareholders.

Sid would have been astonished at the evolution of CMV Farms, which has fl ourished under David’s leadership. The operation of CMV Farms is never without its challenges, particularly drought and ongoing water supply issues. This reached crisis point during the prolonged drought of 1999

which lasted for just over a decade. CMV Farms was forced to rethink its irrigation strategy and over the next few years converted hundreds of hectares of orchards from sprinkler systems to drip irrigation to conserve water. The drought ended in 2011, ironically with the worst and wettest weather in 30 years, as unseasonal rain fl ooded the company’s vineyards and orchards and caused widespread fungal diseases.

The drought and associated high cost of water accelerated CMV Farms’ decision to redevelop its oldest almond trees at Lindsay Point, which were replanted on drip irrigation at more than double the previous number of trees per hectare. Further upstream, the Robinvale vineyard made way for 40ha of new pistachio plantings on the Home Block. The original 1984 plantings were interplanted with young trees, creating one of Australia’s most productive pistachio orchards.

Widespread fl oods hit CMV Farms hard in 2011

From left, Ben Harrison, Nigel Carey and Grant Birrell are part of the NPA team which processes and markets nuts on behalf of its growers

CMV’s agricultural interests have been a signifi cant contributor to the CMV Group over more than 30 years. Today, the company owns 330ha of almonds, 173ha of pistachios and 574ha of winegrapes. In 2013, the collective farms posted a record year and more than offset tough trading conditions in several of CMV’s automotive businesses, highlighting the strength of the Group’s diversity. David says CMV Farms sees the nut enterprises as real growth opportunities. “We are expanding our nut interests as fast as events and capital allow,” he says. “Our excitement about the future of the wine industry is much more understated, but we believe that consolidating our winegrape production in the very versatile Langhorne Creek region is a sound strategic direction”. As part of its future strategy, CMV Farms has put in place several safeguards to minimise the impact of future environmental events and secure and sustain its water supply as much as is possible.

37

75TH CELEBRATIONS

75TH CELEBRATIONSOn 29th February, 2009, CMV celebrated the beginning of its 75th year in business, with secret deliveries of commemorative birthday cakes making their way to teams across the Group, as well as to some lucky customers. Staff were presented with 75-year badges to be worn throughout the year and customers taking delivery of new vehicles on this day were presented with a celebratory bottle of Shearer’s Hill Sauvignon Blanc or Dam Good Shiraz from CMV Farms. In February 2010, the 75th anniversary celebrations culminated in the launch of the CMV 75-year history book by Josephine Crawford in the State Library of South Australia’s Mortlock Chamber. Staff and VIP customers were given a copy of the book in acknowledgement of their contribution to the company over the last 75 years.

38

BOARD INFLUENCE

BOARD INFLUENCE The CMV Group Board, which has played an infl uential role in the progress of CMV for 80 years, has been led by just fi ve chairmen. Hugh Crawford (no relation to Sid), was the Chairman of CMV, from 1934 until 1943, when Sid took over the role. Following Sid’s death in 1968, Jim Crawford became the third and longest-serving chairman. Shortly after Jim’s death in 1999, Neil Sarah was elected Chairman. Neil had been appointed to the Board as a non-executive Director in 1991, as since Keith Skopal’s retirement earlier that year, the Board had been lacking a “money man”. Neil had a background in economics and was a successful businessman in his own right. His appointment to the Board during the recession was very timely. Neil retired from the CMV Group Board in 2009, making way for current Chairman David Simmons, who has brought a fresh, unorthodox approach to the Board table. Like Neil, David is very good with fi gures and brings with him a wealth of commercial experience. The CMV Group Board, as well as many other subsidiary boards over the years, have been well served by a long list of directors, who willingly gave of their time and expertise to strategically steer the company to where it is today. Sadly, Director Bruce McDougall passed away in December 2011, having served for more than eight years on the CMV Group Board, as well as the NPA and Riverland Almonds boards. Bruce was an enthusiastic and energetic Director who applied his intellect and agribusiness expertise to every debate. Since the era of Sid’s dictatorial style of leadership, Jim and his sons, Michael, David and Paul, have benefi ted from the different perspectives offered by each other, as well as their fellow Board members.

David Meyer has been a Director of the CMI and CMV Group Boards since 1984.

The CMV Group Board in 2014, with members of the fourth generation of Crawfords (indicated with an *), from left, David Meyer, David Skopal, Daniel Crawford*, Drew Ford*, Paul Crawford, Michael Crawford, Chairman David Simmons, David Crawford, Anthony Casey, Jonathan Crawford*, Stephen Parker, Steve Palyga and Ross Greig*

MALLS BALLS TESTThe “Malls Balls Test” was explained to David Simmons when he fi rst joined the CMV Group Board as Chairman. The “Malls Balls” are a landmark in Adelaide’s Rundle Mall and this simple test was devised by Jim Crawford to ensure that all decisions made by the CMV Board were moral, as well as fi nancially sound. David says it is an excellent discipline because it dictates that all Directors must be prepared to explain their decisions to the rest of the world. “Every single decision taken by the CMV Board, in relation to any matter, has to not only pass the normal legal and regulatory tests, but also has to pass the Malls Balls Test,” David says. “Put simply, would we as a Board be prepared to stand next to the Malls Balls and be happy to explain to anyone how and why a decision was made?”

39

PROUDLY FAMILY

JOSEPHINE CRAWFORDThe Crawford family now extends to a fourth and fi fth generation, but sadly lost its matriarch, when Josephine Crawford passed away on 13th December 2011. Jo was a staunch supporter of Jim and his work at CMV, an active community member and a devoted mother, grandmother and great-grandmother. Jo was guest of honour at CMV’s 75th celebrations, including the launch of the CMV 75-year history book, to which she made a valued contribution. “She was immensely proud of the book, which told the story of her family and their enduring commitment to CMV,” her sons say.

FOURTH GENERATIONCMV is as committed as ever to remaining a family business. Chairman David Simmons has been entrusted with mentoring the fourth generation of the Crawford family as their time approaches to take over the reins from Michael, David and Paul. The Chairman says there is no doubt that the family business will continue. “We are very comfortable with this model and it is clear that CMV will remain a private company and it is important that we are very rigorous with this process. This is why we are investing a lot of time into a succession plan for when Michael, David and Paul eventually step aside.”

David is working closely with members of the fourth generation to determine whether they wish to be involved in CMV, and assessing their strengths and career aspirations, as well as opportunities to integrate them into the business. Currently, the fourth generation is represented by Jonathan Crawford who is the Operations Manager at CMV Truck Sales in South Australia, and has worked for CMV since 2007. Also Daniel Crawford, who worked as an engineer for Kenworth in Melbourne before joining CMV, where he is currently Operations Manager at the Hallam Truck Centre. David Crawford’s stepson, Ross Greig, is drawing on his background in agricultural equipment and business management in his role at CMV Truck & Bus Laverton – Mack & UD. Drew Ford, nephew of Michael, David and Paul, has a degree in international management and marketing, and recently joined CMI Toyota, and has since transferred to Lexus of Adelaide where he is the acting General Manager.

Director David Meyer says the Board is not just looking for fourth generation Crawfords to take CMV into the future, but senior managers from within the business. “We are expanding middle management which provides opportunities for

other employees to step up and work alongside the next generation of Crawfords,” David says. “This will be a major focus over the next fi ve years, so that when Michael, Paul and David take on non-executive roles we have the right players in place to ensure a seamless transition. We are very fortunate to have another generation of Crawfords coming through, but there will always be room for non-family members at the top level.”

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THE FUTURE

Today, CMV is one of Australia’s most successful family businesses, with diversifi ed interests in the sale and service of trucks, buses and passengers cars, as well as agricultural investments in the production, processing and marketing of winegrapes, pistachios and almonds.

The company has proven, over a period of 80 years, that it is able to simultaneously represent several key vehicle manufacturers, including Kenworth, DAF, Volvo/UD/Mack and Hino in trucks and Toyota, Lexus, Jeep, Suzuki and Mercedes-Benz in cars. Michael and Paul say that transparency and integrity are critical to maintaining the confi dence of the truck and car franchisors whose vehicles are often competing head to head in the same market. “We fully realise the responsibility of representing our franchises fairly and independently,” Michael and Paul say. “Where there exists the potential for confl ict between the brands, our model is to establish completely autonomous companies, separated geographically and each with their own independent management structure. These businesses compete as aggressively with each other as opposition dealerships. The key to our business success has been the franchises we have been privileged to represent. We market some of the best brands in the world, with vehicles sourced from several different countries, that offer our customers a complete range of vehicles that suit every application.”

By the end of the CMV’s 80th year in 2014, the company boasted 1250 employees and an annual turnover in excess of one billion dollars. Despite its continued growth, third generation custodians, Michael, Paul and David Crawford, have worked hard to maintain the core values in relation to the treatment of staff, customers and the community, which were set in place by their grandfather, Sid, and father, Jim.

CMV continues to develop strong relationships with its employees, introducing initiatives such as the Group Induction Program to welcome new employees, the Leadership Development Program to identify and develop future leaders and the 25-years Service Club to recognise long-serving staff. The company’s commitment to workplace health and safety (WH&S), has been invigorated through the input of Director Steve Palyga and the introduction of regular safety meetings, reports and training opportunities. In 2014, CMV also rolled out a safety logo, to reinforce the safety message and help achieve a goal of zero harm.

MICHAEL, PAUL AND DAVID CRAWFORD, HAVE WORKED HARD TO MAINTAIN THE CORE VALUES IN RELATION TO THE TREATMENT OF STAFF, CUSTOMERS AND THE COMMUNITY, WHICH WERE SET IN PLACE BY THEIR GRANDFATHER, SID AND FATHER, JIM.

Since 2009, CMV has invested well over $100 million in capital property, developing magnifi cent new facilities for several of its dealerships and with plans afoot to signifi cantly expand its almond enterprise. The CMV Board has demonstrated its commitment to growing the business in areas it understands, with possible geographic expansion in the future, if the right opportunities present themselves. As Michael looks towards retirement, followed by David and Paul, the three brothers are optimistic about the future of CMV and the ongoing involvement of their family. “We will continue to be custodians of the ownership, with a commitment to the family business that was started by our grandfather, Sid, 80 years ago,” they say. “It is a great honour to build on that legacy and we have not doubt that the fourth generation will take the company to even greater heights.”

THE FUTURE

Today, CMV is one of Australia’s most successful family businesses, with diversifi ed interests in the sale and service of trucks, buses and passengers cars, as well as agricultural investments in the production, processing and marketing of

Together with images of Sid and Jim Crawford, the current custodians of the CMV Group, Paul, Michael and David Crawford (seated) acknowledge the immersion of the fourth generation of Crawfords into their family company. Standing (from left) are Jonathan Crawford, Ross Greig, Drew Ford and Daniel Crawford, who are all working in different divisions throughout the CMV Group.

290 Wright StreetAdelaide SA 5000

Phone 08 8238 5566Facsimile 08 8238 5597

Email cmv@cmv.com.auwww.cmv.com.au

Published February 2015