september 2020 .com.au mitsubishi’s top dealers · editor robert barry reached out to some now...

1 SEPTEMBER 2020Australia

THE AUSTRALIAN VEHICLE DEALER’S NEWS SOURCE

SEPTEMBER 2020 .COM.AU

MITSUBISHI’S TOP DEALERS

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LIFE AFTER HOLDEN - HOW DEALERSHIPS ARE MOVING FORWARD

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REPCO WINS BATHURST 1000 NAMING RIGHTS

P.15 NORTHEAST MITSUBISHI DP MARK PAPILLO AND MMAL CEO SHAUN WESTCOTT


HELLO THERE, ROBERT BARRYEDITOR AUTOTALK

August has been a challenging month for the automotive industry, especially for the

dealers in the Melbourne metropolitan area which saw their businesses fundamentally shut down, barring online sales, breakdown or safety recall repairs.

Fortunately, after some intense lobbying from a division of the Victorian Automobile Chamber of Commerce (VACC), known as the Victorian Automotive Dealers Association (VADA), the Federal Government moved to extend its JobKeeper package, which will give some struggling dealers a much better chance of surviving the shutdown.

Automotive portals such as carsales, Gumtree Cars, AutoTrader and CarsGuide all waived their dealer listing fees for Metro Melbourne dealers for the duration of the level 4 pandemic response until it is lifted by the state government.

In a further supportive gesture, carsales has made its employee assistance programme available to any staff member of a metro Melbourne dealership needing some help and assistance through this trying time.

The organisation is not looking for kudos by making such assistance available, it simply believes it’s the right thing to do.

It is inevitable that some automotive

dealerships are not going to survive this pandemic, but on the other side of the coin there are going to be those who adapt and fight, and they’ve got technology to help.

The pandemic has seen a huge shift in the way cars are bought, sold and traded by dealers and wholesalers, and this market change isn’t going to slow down anytime soon.

Digitalisation is going to be key to survive in the future across both the new and used car markets, and it may already be too late for some businesses if they think they have time to catch up.

From choosing a vehicle, to finance and insurance, warranty claims and scheduled servicing, all will be done at the click of mouse. Car owners will have the choice of as much or as little contact with the dealership as they desire.

This provides challenges but also opens up opportunities for dealers to create a smart and savvy CRM system to maintain a relationship with their customers.

The 28 month-long decline in new vehicle sales also means that there now a shortage of good quality used vehicles to satisfy buyers who cannot afford a new vehicle.

While the increase in used vehicle values will be welcomed by some, it still makes sourcing a challenge for

dealers. As one regional Victorian dealer principal told me: “This is not a new problem, the only way we can get good quality used vehicles is to trade them.”

Keeping abreast of the digitalisation of the industry should help dealers work smarter rather than harder, and hopefully keep their businesses afloat through this time of change and uncertainty.

Enjoy your reading.

Robert BarryEDITOR AUTOTALK

EDITORIALTALK

3SEPTEMBER 2020 Australia

LIFE AFTER HOLDEN – HOW DEALERSHIPS ARE MOVING FORWARDEditor Robert Barry reached out to some now former GM-Holden franchise dealers to ask how their automotive businesses are coping in post Holden world.

Auto Guild chief executive Jack Torcaso settled a confidential legal agreement with GM-

Holden after it terminated the Metro Holden franchise in Thebarton, Adelaide as of December 31, 2017.

He’d been a Holden dealer for more than 40 years, and some members of staff had been with him for more than 30 years. Torcaso told local newspaper The Advertiser that the news had been devastating for staff, who were concerned they would be jobless.

At the time Torcaso’s Metro Holden business was terminated by GM-Holden, along with 30 other dealerships, as part of a network reduction program, despite the Adelaide-based business having a $73 million turnover in 2016 and winning numerous Grand Master dealership awards.

Torcaso and dealer principal Gino Raschella managed to sell the Metro Holden parts business to Peter Page Holden in January 2018 in an effort to keep the 15 parts staff employed.

The Metro Holden dealership in Port Road, was rebranded in early 2018 as Metro Auto Centre selling used vehicles, with Raschella as dealer principal, and retained 50 staff members.

Since then Auto Guild has rebranded the business into Adelaide City Used Cars and has also been appointed a

franchise dealership for the Chrysler, Jeep, Great Wall and Haval brands.

“Obviously we went through difficult times at first but now we are happy and profitable,” Torcaso says.

“I thank GM Holden for giving me an extra two years to find the franchises that we have got, Chrysler, Jeep, Great Wall and Haval. We are very happy with these franchises.

“Haval have appointed another former Holden dealer in Adelaide but that has actually helped in getting the public to see the brand,” Torcaso says.

Torcaso says he understands what Holden dealers are going through but he doesn’t have a lot of sympathy for them.

“When we were going through our problems only a few dealers kept in touch, most did not give a damn about us,” he says.

Torcaso says in his opinion GM-Holden was in a position that did not suit them.

“To bring a motor company from 14% market share to 4% you either do not know what you are doing or are doing it because you’ve been instructed to do so,” he says.

SUPPORTING TENS OF THOUSANDS OF NSW HOLDEN OWNERS

Wakeling Automotive Group managing director Scott Wakeling says his family-owned business has held a long and

prosperous relationship with GM-Holden going back to the mid-1980s.

He says he is proud to have grown up in one of Macarthur’s most prominent family businesses, which he says is one of New South Wales largest automotive dealership groups.

The business has three brands, Paul Wakeling Motor Group, Camden Valley Motors, and Moss Vale Motor Group.

Paul Wakeling Motor Group Campelltown was the first family-owned dealership. It began operating a Holden franchise in 1985 with five members of staff. Today the dealership encompasses six new car brands, as well as two used car yards and more than 165 employees.

Camden Valley Motors started operations as a Holden dealership in Camden in 1998, and quickly grew in size to meet the demands of New South Wale’s fastest growing region, the

SCOTT WAKELING

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Greater Narellan area.

In 2010, the Camden Valley Holden dealership relocated to a new facility in Smeaton Grange, as well as expanding franchise offerings to include two additional brands at the location.

Moss Vale Motor Group was established by the Wakeling Automotive Group in 2006 on the Argyle Street site formerly occupied by Charlesworth & Company, an older established Southern Highlands family business which was one of the first Holden dealers in Australia.

Scott Wakeling says all three of the Holden locations at Campbelltown, Smeaton Grange and Moss Vale will continue to operate as Holden Aftersales service outlets.

“This is especially important for us as we know there are tens of thousands of loyal Wakelings and Holden customers in our communities that look to us for continuity,” Wakeling says.

He says he is not able to comment on the change of use of the Holden showrooms as negotiations are ongoing.

“However, we are more than

confident that all our sites will be utilising showrooms vacated by the Holden withdrawal for other new car franchises,” Wakeling says.

EAGERS AUTOMOTIVE TAKES A $34M IMPAIRMENT ON HOLDEN SHOWROOM LEASES

ASX listed automotive retail group Eagers Automotive has released its half-year financial report which shows the company made a net profit after tax of $11.8 million to June 31, 2020 (1H20), a 72% decline on the previous half year (1H19).

This despite doubling its revenue from more than $2 billion to more than $4b through the acquisition of Automotive Holdings Group (AHG).

Eagers Automotive says it took a $34m non-cash impairment of leased assets for Holden properties with no current plans to repurpose, as well as Holden specific fixed assets, leasehold improvements and corporate identity.

The listed company also saw a $6.4m impairment on revaluations of land and buildings.

Eagers Automotive says its Holden dealerships will continue to operate service outlets to support existing

Holden customers with warranty claims, spare parts, servicing and recalls for five years.

A spokesperson for Eagers Automotive says in relation to Holden dealership staff across the ten dealerships operated in Queensland and Tasmania, some have opted for retirement, some have opted for redundancy, and where possible others have been redeployed to other franchises within the group.

“There is still some brand new Holden vehicle stock left to sell across those dealerships,” the Eagers Automotive spokesperson says.

“Given the scale of the company it will try to mitigate the closures of showrooms by adopting other automotive brands. The company has reached an agreement with GM-Holden to continue to provides parts and service support through existing sites.

“Eagers Automotive is also looking to take up the new GMSV franchise for showrooms that were formerly used by the HSV brand, and is in negotiations with the franchisor,” the Eagers Automotive spokesperson says.

...from page 3

EAGERS HOLDEN AND HSV - QLD


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US PICKUP TRUCKS AND SPORTS CAR FUEL GMSV GROWTH STRATEGY

On August 18, General Motors confirmed that its new start-up venture to be known as

GM Speciality Vehicles (GMSV) would commence operations in Australia and New Zealand in the fourth quarter of 2020.

It also revealed that GM-Holden sales director Peter Keley was the executive who spearheaded the creation of GMSV but has elected to leave GM at the end of October.

As part of his transition, Keley will work with the newly appointed director – GM Speciality Vehicles Joanne Stogiannis to establish GMSV’s dealer network in Australia and New Zealand.

GM-Holden interim chairman and managing director Kristian Aquilina confirmed that GMSV will supply a selection of hand-picked GM vehicles to Australia and New Zealand customers.

Aquilina says GMSV represented an important new investment by General Motors in Australia and would be established alongside existing business units in the region such as Holden Aftersales and Isuzu Trucks New Zealand.

“This new venture directly adds sales, marketing and aftersales roles to GM’s 200-strong presence in Australia, and indirectly supports more than 150 skilled engineering and manufacturing jobs at our partner in Victoria,” Aquilina says.

“The initial product line-up will feature the Chevrolet Silverado 1500 LTZ, with other derivatives, including the Silverado 2500 and mid-engine Corvette anticipated to follow in 2021,” he says.

The Chevrolet Silverado models will be remanufactured to right-hand-drive (RHD) by the Walkinshaw Automotive Group at its manufacturing facility in Melbourne.

The new Corvette will come to Australia

and New Zealand in RHD directly out of the Bowling Green plant in Kentucky USA.

Stogiannis says sales of large US pick-ups have been growing consistently and she believes the ongoing strength of that segment will provide a very solid basis for GMSV to build a successful long-term business.

“The plan to bring the new mid-engine Corvette in RHD direct from the factory is an exciting opportunity for local performance car enthusiasts,” Stogiannis says.

“The new investment by GM in the Australian and New Zealand markets will bring extra competition to niche segments of the car market, enhanced choice to consumers while underpinning new employment opportunities.

GMSV will see GM’s long association with the Walkinshaw Automotive Group continue.

“It is especially pleasing given their long track record with GM via HSV and the fact that GMSV can continue to draw on its renowned automotive engineering expertise,” Stogiannis says.

“We’re delighted to continue our 33-year association with GM through the new GMSV venture,” Walkinshaw Automotive Group director Ryan Walkinshaw says.

“It also means we’re able to keep automotive employment in Victoria, directly securing some 150 manufacturing jobs, and look to grow as we work with GM in this space,” Walkinshaw says.

FORGING A NEW PATH

Before being appointed to the role of Director – GM Speciality Vehicles, Stogiannis was previously the Maven general manager for 12 months, with the responsibility for the overall operation of GM’s mobility business in Australia, which provided car share and

car rental services.

Stogiannis has worked her way up the corporate ladder since she began her automotive career at GM-Holden in

PETER KELEY

JOANNE STOGIANNIS

KRISTIAN AQUILINA

When GM announced the Holden brand would be retired from sales in Australia and New Zealand in February, as well as the wind down of design and engineering operations, it also flagged it would be creating a speciality vehicles business as part of its growth strategy.

to page 7...


2002 as an export and new business manager. In 2005 she was appointed national fleet manager, moving to the role of marketing manager for small and medium cars in 2007.

In 2009 Stiogiannis was appointed Digital CRM marketing manager – becoming the general manager of digital marketing in 2013, then being appointed the zone manager for Victoria and Tasmania in 2014.

She became the director – dealer excellence in 2017 and was also appointed director – sales operations in 2018.

Stogiannis has also worked with several international GM divisions.

SIGNING OFF A 37-YEAR CAREER

A classic car enthusiast who restored

his own V8 HQ Monaro Coupe and also has a penchant for Triumph Stags, Peter Keley has elected to leave General Motors in October after a 37-year career across roles in Australia, New Zealand and the US.

Keley was appointed GM-Holden executive sales director in April 2018 for the second time, having previously been in the same role from 2014 to 2017.

He was the General Motors International On-Star managing director for a year based in Melbourne and was responsible for launching the company’s automotive communications system.

He joined GM Holden in 1983 in finance, later transferring to sales and marketing and held several positions in Holden’s zone offices around Australia.

In 1998 Keley returned to GM Holden headquarters as senior product planner for large cars and became the manager of marketing product planning in 1999.

He was appointed export director in January 2004 and in 2005 oversaw what was then Holden’s largest ever year of exports, with more than 50,000 units.

In November 2005, he took over the role of managing director of Holden New Zealand.

In 2008 Keley returned to Australia taking on the role of executive director – planning. In this role he took on the responsibility for planning and executing Holden’s future product portfolio for both locally made and imported products.

DEALERTALK

...from page 6

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CHEVROLET CORVETTE STINGRAY


METRO MELBOURNE DP: JOBKEEPER A GODSEND

The dealer principal of three metro Melbourne dealerships is praising the Victorian

Automotive Dealers Association (VADA, the new-car dealer division of VACC) for successfully lobbying the Federal Government to extend the JobKeeper package.

Volvo Cars South Yarra, Camberwell, and Doncaster dealer principal Sue Alford says the Federal Government’s decision to extend the JobKeeper package is a godsend and she acknowledges how strongly VADA campaigned to make this happen.

“I particularly want to thank VADA industry policy adviser Micheal McKenna for all of his work in submitting our case to the federal government,” Alford says.

“VADA did a great job and I’m grateful to the Federal Government,” Alford says. “However, the state government has done nothing financially to support the new car sales industry in metro Melbourne.”

She says the easing of requirements for the federal subsidy will allow Victorian car dealers a better chance of continuing to stay in business in the next two financial quarters.

“It is frustrating because the new car sales industry was well ahead of the government in terms of sanitisation and cleaning procedures. There hasn’t been a case of COVID-19 traced back to the automotive industry that I know of,” Alford says.

The closure of the Volvo showrooms has resulted in two new car sales in a

week when there would normally be 20 to 30.

She has stood down more than 70% of the staff at Volvo Cars South Yarra and Doncaster, the service department is open for emergency and breakdown work only, with two technicians on the workshop floor instead of 15.

Alford says while the dealerships can sell new cars online and over the phone, and provide contactless delivery, she says many customers are now placing deposits subject to viewing in six weeks when the lockdown is over.

“But you know that contract isn’t bankable until the customer sees and touches the car,” Alford says.

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HOLDEN LAUNCHES GM TRADE PARTS

Holden has announced the launch of GM Trade

Parts – an automotive trade-only programme that brings competitively priced Holden Genuine Parts, ACDelco and recent Chevrolet Genuine Service Parts to the trade through its Holden Dealer Network across Australia and New Zealand.GM Trade Parts takes the reins from the long-running Holden Trade Club programme, the rebranding bringing with it a suite of new products and benefits for its existing 28,000 members. “With over 1.6 million Holden’s still on the road, there’s huge demand for Holden Genuine Parts in automotive workshops today,” Paul Rietveld Holden director aftersales says.“Holden has made a commitment to

its customers to continue supplying Holden parts for at least the next decade, and the launch of GM Trade Parts reinforces this assurance to the automotive repair trade in both Australia and New Zealand.” ACDelco also continues to expand its most makes and models product range – from the oil in the engine to the globes in the taillights, the ACDelco product range is diverse and ever-growing.

If you’re in the automotive trade and not an existing member, it’s free to join. You can Learn more about the programme at www.gmtradeparts.com.au or speak with your local Holden parts department.

An automotive trade-only programme for Holden Genuine, ACDelco Parts, and Chevrolet Genuine Service Parts.

CRAIG LOWNDES IN THE RED BULL HOLDEN RACING TEAM WORKSHOP, WITH THE UPDATED GM TRADE PARTS SIGNAGE ON THE 2020 ZB COMMODORE SUPERCAR.

HOLDEN HAS MADE A COMMITMENT TO ITS CUSTOMERS TO CONTINUE SUPPLYING PARTS FOR AT LEAST THE NEXT

DECADE.

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DEALERTALK

HOW DEALERSHIPS CAN TAKE ADVANTAGE OF THE SECOND-HAND VEHICLE GOLD RUSH

Disruption from the COVID-19 pandemic has impacted all areas of the modern dealership; from

how sales staff interact with customers, to the safety procedures that aftersales teams have implemented while inspecting vehicles. And the team responsible for sourcing and selling second-hand vehicles is not immune to these impacts either.

Dealerships across the country are finding it increasingly difficult to source used car stock, and in turn, have increased their demand for everything from demonstrator models to older second-hand vehicle cars that are still in good condition.

In this article, we look to explore the factors that have caused the second-hand market to explode in growth and how dealers can leverage classified platforms to meet growing customer demand and take advantage of the second-hand car gold rush.

ADDRESSING CUSTOMER DEMAND

According to Gumtree’s Auto Barometer Q2 report, Gumtree Cars recorded over 155 million automotive searches between April- June 2020, an increase of 19% versus Q1. As sales of new vehicles across the country continue to decline, consumers and dealers alike have driven towards the second-hand economy to save money, without compromising on quality.

With travel restrictions in place, we’ve seen an indication that customers are seeking alternatives when it comes to how they can travel. Over the recent quarter, searches on Gumtree for 4x4 (up 60%) and SUVs (up 75%) have continued to rise, advantageous dealers could look to classified platforms in order to source vehicles that have towing capabilities, knowing that customers are looking for these items.

Proactive dealers can further build and extend relationships directly with their customers this way, managing the search on their customers behalf, negotiating price through their preferred finance provider and working with their customers to generate a quick sale – providing the best outcomes possible for the dealer, private seller and customer.

With the increase of customer searches and demand, dealers should look to tap into their existing customer bases and extend their service offering.

EXTENDING THE NETWORK

Using classified platforms as a means of tracking down private listings is nothing new, in fact, there is a long-standing tradition of dealerships leveraging these platforms and systems to assist in searching for stock.

With more than 1600 dealers across Australia using the Gumtree platform to reach customers directly, we are continuing to find alternative ways to assist and streamline our support to this group.

To do this, we have introduced our free Dealer Central service which has been designed as an inventory management platform, that helps our dealers more efficiently create, manage and optimise their stock levels.

With real-time reporting and tracking stock over time, this level of insight will help dealers more effectively identify, seek out and prioritise certain stock to drive sales.

As the #1 place for privately listed cars, dealers have access to a broad range of used cars across the site, at a variety of price points. For instance, the most common marque listed for sale in the last six months is the reliable Toyota (125,825), closely followed by Holden (100,870) and Ford (70,769) which

continue to dominate.

There is no doubt that the automotive industry has changed dramatically through COVID, customer buying behaviour has changed and we have needed to shift our offering in order to stay ahead of the market.

As second-hand cars become scarce, these insights will become more valuable for dealers to ensure they stay top of mind for well-informed automotive buyers across the country.

GUMTREE AUSTRALIA HEAD OF MOTORS RICHARD DICELLO


DEALERTALK

MITSUBISHI MOTORS AWARDS ITS 2020 DISTINGUISHED DEALERS ONLINE

In a virtual ceremony streamed online, Mitsubishi Motors Australia Limited (MMAL) has announced the

seven dealerships which have won the 2020 distinguished dealer award.The awards were presented to four metropolitan dealers, two provincial dealers and one rural dealer.South Australian metro dealer North East Mitsubishi picked up its eighth award which was presented to dealer principal Mark Papillo by MMAL chief executive officer Shaun Westcott.Another South Australian metro dealership Australian Motors Mitsubishi – Wayville picked up it’s fifth award which was also presented to dealer principal Dylan Nunn by MMAL chief executive officer Shaun Westcott.Nunn also received the distinguished dealer award for Australian Motors Mitsubishi – Morphett Vale, SA.Dealer principal Glenn Miller accepted the distinguished dealer award for Western Australia metro dealership Wanneroo Mitsubishi.Tropical Mitsubishi in North Rockhampton QLD, managed by dealer principal Len Harper, was one of two provincial dealerships to win the distinguished dealer award, the other being Berwick Mitsubishi in Victoria managed by dealer principal Paul Buruma. Mareeba Mitsubishi in North Queensland was the sole rural dealer to win the distinguished dealer award which was accepted by dealer principal David Mete.

MMAL says the distinguished dealer is one of its longest-standing recognition programmes and is the most prestigious accolade awarded to any Mitsubishi dealer.First presented in 1981, the distinguished dealer award acknowledges outstanding performance throughout the previous year across sales, parts sales, service and customer experience, MMA says. It says the recipients of the distinguished dealer award demonstrate best practice in Mitsubishi dealerships and drive performance improvement across the network.MMAL chief executive officer Shaun Westcott thanked dealerships and their teams for their ongoing commitment to providing exceptional service and product expertise to customers.“The distinguished dealer award recognises the importance of our strong dealer network and the vital role they play in providing an excellent experience to customers across Australia.“In a tough market, where many of our dealers are working hard to balance the needs of Mitsubishi owners and their staff amongst localised restrictions, I welcome the opportunity to celebrate these dealers and their outstanding contributions across all areas of the business,” Westcott says.

MAREEBA MITSUBISHI DP DAVID METE

AUSTRALIAN MITSUBISHI DP DYLAN NUNN

WANNEROO MITSUBISHI DP GLENN MILLAR

TROPICAL MITSUBISHI DP LEN HARPER

DP PAUL BURUMA AND THE BERWICK MITSUBISHI TEAM

NORTH EAST MITSUBISHI DP MARK PAPILLO AND MMAL CEO SHAUN WESTCOTT


DEALERTALK

RENAULT TARGETS SMALL BUSINESSES WITH FIVE-YEAR LCV WARRANTY

Renault has now extended a high five to Australian small business owners with the inclusion of a five year/200,000km warranty on its Easy Life LCV package.

It means every Renault Kangoo*, Trafic and Master now comes standard with the warranty, five capped price services, and up to five years’ service activated roadside assistance.

“This is a direct response to the overwhelming customer

feedback about the five-year warranty promotional offer we began in July as part of our plan to offer the best possible coverage,” Renault Australia aftersales and quality director Matthew Wright says.

“In these uncertain times, we have seen strong success with this offer already across all three models. The inclusion of a five-year warranty as standard provides more stability and certainty for customers both now and well into the future.”

Wright credited the work of Renault dealers in creating the service programme.

“They have demonstrated a strong focus on customer safety and security in this challenging environment. Their knowledge of real-world servicing behaviour and customer demands in showrooms has been a driving force in helping us create such a comprehensive programme.”

Wright said the Renault Easy Life programme covered all Renault LCV nameplates.

“We’ve worked to improve transparency by including nearly all items previously added to the published schedule such as air and pollen filters, coolant and brake fluid replacement and accessory drive belts as standard.

“Working with delivery drivers and small business owners, we know they choose our vans for their ability to go the distance, minimise downtime, and maximise convenience. With Easy Life, we’re improving the value equation even further and providing owners with the data they need to calculate running costs for up to five years.

“Backed up by our 24/7 nationwide roadside assistance, it delivers a true peace of mind ownership.”

Find more about the award-winning Renault LCV range and the benefits offered by the new Easy Life programme at www.renault.com.au.

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Toyota Motor Corporation Australia says cumulative sales of its certified pre-owned vehicles have

doubled in two years, reaching a total of 100,000 sales in August.

It says an increasing number of consumers regarded the company's certified brand as a smart alternative to a new vehicle.

Toyota Australia says 15% of owners of certified pre-owned vehicles will go on to purchase a new Toyota within five years.Under the program, all certified pre-owned Toyota vehicles must be under 10 years old and have fewer than 160,000km on the odometer.

The company says the certified pre-owned vehicles are affordable, with almost one-third of eligible vehicles priced under $20,000. It says three-quarters are less than five years old and 41% are under three years old.

"Consumers are finding a Toyota Certified Pre-Owned vehicle is an affordable entry point to our brand - and often the first step in becoming a customer for life, with 15% of owners purchasing a new car within five years," Toyota Australia sales and marketing vice-president Sean Hanley says.

"Toyota chooses only the best pre-owned cars for the programme and subjects them to a comprehensive inspection and background check, which means buyers can be as sure of

the car's past as they are of its future.

"We anticipate certified pre-owned sales to continue growing beyond 25,000 a year as these cars offer the choice and quality expected of a Toyota," Hanley saysEach car undergoes an extensive 90-point inspection of all mechanical components, interior and exterior body condition, keys, service books and more, before being delivered in showroom condition.

They are also subject to a CarHistory check that searches the country's largest database of consumer and credit records. The vehicle's financial history is assessed in addition to checking it has not been stolen or has not been previously written off due to accident, flood or storm damage.

Once certified, the vehicles are covered by 12 months Toyota Roadside Assist, in addition to the statutory warranty.

A range of finance options is available including Toyota Access that offers a Guaranteed Future Value - that reduces the regular repayments.Toyota is marking the milestone by offering a free defensive driving course for anyone under 25 years who purchases one of these used cars over the next three months (September-November).

DEALERTALK

TOYOTA CERTIFIED USED VEHICLE PROGRAM REACHES 100,000 SALES

TOYOTA AUSTRALIA SALES & MARKETING VICE PRESIDENT SEAN HANLEY


DEALERTALK

HSV DEALER NETWORK WILL CONTINUE AS WALKINSHAW MOVES TO MANUFACTURING

Walkinshaw Automotive Group (WAG) director Ryan Walkinshaw says the HSV

dealer network will continue to service HSV products and supply warranty, spare parts, and accessories to its customers in the future.

WAG is the parent company of Holden Special Vehicles (HSV), Walkinshaw Performance and Walkinshaw Sports. It is also a partner in the Walkinshaw Andretti United (WAU) motorsports team.

This reassurance for HSV owners comes as WAG pivots into to a contract manufacturing and engineering company for multiple customers.

WAG says it will continue to operate the HSV website and social media pages, and orders for Chevrolet 1500 vehicles placed through its HSV dealer network will be fulfilled to the end of October.

It says HSV fans can still buy HSV merchandise through the website, authenticity certificates for HSV vehicles are available through WAG customer service but the company is no longer conducting guest tours of its manufacturing facility.

“We are committed to preserving HSV’s integrity and heritage, and ensure it remains the pinnacle of Australian motoring,” Walkinshaw says.

“HSV has enjoyed an extremely successful journey through more than 30 years of Australian automotive history. HSV’s engineering feats and ground-breaking designs captured the hearts of Australians, creating a wide and loyal fan base.

“This includes the production of more than 85,000 HSVs starting with our first Commodore models, through to W1 and the Sportscat.

WAG says it will continue to re-manufacture the Chevrolet Silverado at its Clayton premises for long-term business partner General Motors (GM).

From Q4 2020 GM’s new venture, General Motors-Speciality Vehicles (GMSV) will begin distribution and marketing of the re-manufactured right-hand-drive Silverado 1500 and other future specialist vehicles in Australia and New Zealand.

Walkinshaw says he is pleased the company will continue its 33-year association with General Motors through the new GMSV venture.

“We’re able to keep significant automotive employment in Victoria through this new business and continue to bring exciting product to market which is core to the Walkinshaw Group’s DNA,” Walkinshaw says.

“We’ve developed unique engineering expertise in producing OEM standard right-hand drive conversions at scale, and we look forward to working closely with GMSV in this new era.

“We’d also like to thank both the Detroit and local teams of GM for their support in this transition in a very difficult external environment.

“We can apply our whole organisation’s expertise and experience to help deliver first-class results for our customers, as is evident most recently with the success and growth in the full-size truck market,” he says.


Automotive aftermarket parts and accessories provider Repco has signed a multi-year partnership

with Virgin Australia as the naming rights sponsor of the Bathurst 1000 starting in 2021. Repco is the 11th sponsor to take naming rights for the flagship event, according to the Supercars organisation.At the core of Repco’s announcement, is a desire to better engage its customers, which it says are passionate about cars and enthusiastic Supercars fans. In addition, it says the Repco crew of 5000 employees across Australia and New Zealand share the same passion for motorsport as they do the products they sell. “Motorsport is part of Repco’s DNA. The Bathurst sponsorship will further enhance our commitment to the

Repco Crew and our passionate customers. It also ensures motorsport is a significant part of our future,” Repco Australia merchandise and marketing executive general manger Jamie Walton says.Repco says its first involvement in motorsport began with engine manufacturing almost 100 years ago. It partnered with Sir Jack Brabham in the 1960’s with three Formula 1 Grand Prix wins in the BT19, powered by a Repco Brabham engine. In the 1970s, Repco developed and built the F5000 engine for Formula 5000 racing, which also won races in the Australian Grand Prix, the New Zealand Grand Prix, the Australian Driver’s Championship, and the Australian Sports Car Championship. Through the same era, a derivative of the F5000 won the Australia Touring

Car Championship, including success at Bathurst. In 2018, Repco entered a partnership with the Shell V-Power Racing Team and were later crowned the Official Automotive Retailer of the Supercars series.Now Repco and Supercars have established a new five-year agreement commencing in 2021 as the naming rights sponsor for the Bathurst 1000. “Its two iconic brands in one amazing partnership. Repco has a long history in motorsport and so, aligning with Australia’s most famous race was an opportunity we couldn’t pass up,” Repco Australia executive general manager Wayne Bryant says.Supercars chief executive officer Sean Seamer says the new partnership is a major endorsement of the sport. “We are delighted to welcome one of Australasia’s most recognisable brands as our naming rights partner of our marquee event from 2021, Seamer says.

AARON SETON

REPCO GAINS BATHURST 1000 NAMING RIGHTS SPONSORSHIP FROM 2021

JACK BRABHAM

FABIAN COULTHARD

AFTERMARKET


STATE OF THE NATION 2020 REPORT AVAILABLE ON CAPHUBAutomotive co-operative Capricorn has released a 2020 State of the Nation Report on its new member content portal CapHub.

Capricorn has introduced another benefit designed to assist the growth and development of

members’ businesses. It says CapHub is a content portal providing easy access to valuable expert business tips and advice, automotive workshop hacks and important industry data to help develop and improve business. CapHub also includes a snapshot of the automotive repair industry from the perspective of members. The Capricorn State of the Nation Report 2020 is the culmination of Capricorn’s most substantial research project yet undertaken. It combines feedback from more than 1500 automotive workshop owners and operators located across Australia and New Zealand, to provide a range of insights on the industry by the industry. “Capricorn is always looking for more ways to support our members to strengthen their businesses. This is especially important as we recover from the disruption caused by the COVID-19 pandemic,” Capricorn Group chief executive David Fraser says.“In response to members telling us that they want to spend less time working in their workshops and more time working on their workshops, we are sure that this report will enable direct comparisons and outline areas for improvement,” Fraser says.This new Capricorn online business resource includes a variety of regularly updated automotive aftermarket business relevant articles and information within the business section, while the customer section has been designed to assist businesses to attract, retain and engage with valued clients. An industry section provides instant access to a range of reports and event information to keep businesses connected to key support information and activities.Some examples of the business support available from CapHub include tips to improve cashflow, how creating a great culture can transform a business and tough decisions: Short-term pain for long-term gain, and using social media

to enhance customer service. These are joined by industry highlight features such as ensuring that a workshop is future-proof and protecting a business from cyber-crime. The report enables Capricorn members to compare their business’ efficiencies and concerns with their colleagues through easy to understand data analysis. It covers 46 pages including proportionately equal Capricorn member feedback from all Australian states and New Zealand. More than 69% of members own and operate mechanical workshops, 10% are panel repairers, 5% auto electricians, 5% mobile mechanics, 3% tyre and suspension specialists, and the remaining fitting into other automotive categories. This ensured that the information gained from this report came from a vast range of Capricorn businesses of all types and sizes, providing a snapshot of the automotive aftermarket industry.The report features sections relating to

the total member survey data gained. These sections include confidence, challenges, perceptions of success, efficiency, our customers, know your value, parts pricing, technology, the future, apprentices, staff rates, experience and training, succession and future planning and a set of general recommendations. “This is not assumed data; it is real information from real Capricorn members across Australia and New Zealand. I encourage members to benchmark their own business performance compared to their automotive aftermarket industry colleagues. “If there is one major factor that stands out from the findings of this report, it is the optimism of Capricorn members for the future,” Fraser says.Capricorn members and non-members can access the CapHub content portal and State of the Nation Report from the Capricorn website at www.capricorn.coop/caphub.

AFTERMARKET

CAPRICORN GROUP CHIEF EXECUTIVE DAVID FRASER

CAPRICORN MEMBERS CHECK OUT THE NEW PORTAL.


USING MARKET INSIGHT TOOLS TO OPTIMISE YOUR USED CAR PROFITABILITY

We know that used car prices across Australia have been tracking high since April as a

direct result of the challenging market conditions. While the availability of used stock has declined, we still see steady demand in a declining market.

This begs the question, what is your used car strategy and are you maximising every opportunity when it comes to stocking and pricing?

In July, we saw the lowest number of active used vehicles online in the last two years, whilst also seeing the highest number of delisted/sold. This indicates that demand was steady, and although there was a rise in average pricing, we still recorded substantial enquiry and moved metal.

However, in August, we have seen listed vehicles fall off sharply, as indicated by the numbers moving through the Dealer Solutions aggregation tool.

The conditions caused by COVID-19, especially in Victoria, have seen a sharp drop in the number of new cars being sold, which significantly impacts our ability to source trades. Coupled with higher wholesale and auction pricing, this presents a genuine challenge for used car managers across the industry.

While there is no magic wand (and don’t we wish there was), we can control the destiny of our used car departments by understanding the metrics that drive them and lead our results back into the black.

Dealer Solutions recently launched a used car pricing and valuation tool – AutoRadar, that allows a dealer to make market-and data-led decisions - without the guesswork or the “gut feel” that dealers often rely on.

By using data-driven information to manage your used car inventory and reviewing historical trends, you are ensuring that you are maximising gross profit and stocking the cars that consumers want.

So, what are the key questions to ask? It would help if you started with these:

• What has been happening with that exact vehicle in the last 45-plus days?

• How long have the cars taken to move off the market?

• How many pricing changes were my competitors making and did those prices fluctuate?

• What stories and photos were applied to those cars that seemed to move quickly?

All this information will help you position your car from day one at a price that the market is going to respect.

The next piece that a tool like AutoRadar can assist with is the demand and supply of vehicles, relevant to your market area and your customers. With the benefit of these insights, you can measure:

• The days' supply of a vehicle.

• How many are within your competitive set.

• How many have come off the market.

And generally, create yourself a “wish list” of stock that is going to build profit in your used car department.

Creating a retail strategy on a vehicle from the moment you begin a valuation is equally essential.

By inputting your profit objective, reconditioning cost, and lot fees, you can utilise data through Kelley Blue

Book that will provide you with an accurate trade-in value.

By tying your retail strategy in with the valuation piece, you can maximise profits and move each inventory item from your yard in the shortest time possible.

We all know the power of digital, and this pandemic has shown us that consumers are more comfortable with providing their information to online retailers than ever before. It naturally follows that making data-led decisions is the best way for dealers to stay on top of what our customers are looking for and what price they are willing to pay for cars.

Dealer Solutions is at the forefront of data-related insights, given that its global parent company Cox Automotive was the first to initiate a product of this sort through VAuto and Kelley Blue Book supports it.

AutoRadar is an exciting product that we are thrilled to bring to market.

All our digital performance advisors are ready to learn about your used car pricing strategy, work with you on adopting AutoRadar and enable you to make data-driven decisions that lead to increased profitability.

With a 30-day free trial offered on AutoRadar and very competitive prices, Dealer Solutions is making possible for every dealership type, no matter its size, to have access to the latest in used car market insights.

Learn more at dealersolutions.com.au/autoradar or email me directly on [email protected]

DEALER SOLUTIONS - DIGIPURPLE STATE SALES MANAGER KYLIE BREWER

DEALERTALK


In november 2000 the first Lexus dealership in rural Australia

opened in Dubbo, New South Wales.It has now undergone a comprehensive redevelopment embracing the luxury brands L-Finesse corporate identity.The dealership has also been rebranded Lexus of Central West, to better reflect its geographic reach and customer base across central-west NSW.The new Lexus of Central West facility brings a purchasing and ownership experience to customers in a region that stretches from Orange and Parkes in the south to Narrabri and Walgett in the north and across to Wilcannia in the west.It says visitors can experience Lexus through modern decor, prominent natural light, first-class craftsmanship and minimalist yet detailed high-end features, including intricate wooden lattice that is reminiscent of the Lexus spindle grille.Dedicated under-cover service and delivery zones and a relaxed customer lounge evoke the spirit omotenashi - anticipatory Japanese hospitality that is at the heart of the Lexus brand.Lexus of Central West dealer principal David Hayes above says the new dealership provides customers with the world-class experience for which Lexus is renowned."More than ever, these new premises

enable us to deliver the highest standards of omotenashi in all areas of our business, enabling us to deliver an amazing experience to our customers," Hayes says."This is a unique advantage for Lexus that involves going the extra mile for our customers at every turn and ensuring they feel welcome and relaxed."We take this welcoming approach even further with our One Touch Experience that assigns

each customer a highly trained adviser who assists them from their first visit until they drive their new vehicle and when they need service or follow-up," he says.Lexus Australia chief executive Scott Thompson says the Lexus of Central West redevelopment reflected the Dubbo team's understanding that exceptional experiences and quality top the list of customer demands."Lexus of Central West, which serves a large and economically vital part of NSW, epitomises the way successful luxury brands differentiate themselves with quality experiences and service, not just quality vehicles," Thompson says."They are exceeding expectations - not only with impressive facilities, but by anticipating the needs of their customers, treating them with courtesy and providing quality services that are timely and flexible," he says.

FIRST AUSTRALIAN RURAL LEXUS DEALERSHIP RENEWED AND REBRANDED

DEALERTALK


Toyota Australia says cumulative local sales of the Yaris light car has passed 250,000 units, in addition

to 82,000 examples of the Echo - the local name used for the first-generation Yaris.The new fourth-generation Yaris retains the familiar grade levels of Ascent Sport, SX, and ZR powered by a new 88kW/145Nm three-cylinder 1.5-litre petrol engine with a hybrid option also available on SX and ZR.It is now arriving in Toyota Australia dealerships priced from $22,100 for the Ascent Sport six-speed manual to $32,100 for the ZR Hybrid.A direct shift CVT adds just $1500 with a CVT-equipped hybrid on SX and ZR for a further $2000 over their equivalent petrol variants. Low ownership costs include a five-year warranty, extendable to seven years, up to 10 years on the hybrid battery and five annual services capped at $170 each.Fuel consumption is quoted at 5.4L/100km for the manual and 4.9L/100km for the CVT transmission, the latter being a 23% improvement over the predecessor vehicle.The Yaris SX and ZR Hybrid models offer combined fuel consumption of 2.8L/100km from the hybrid synergy drive engine with 67kW/120Nm outputs supplemented by a 59kW/141Nm electric

motor-generator and a compact lithium-ion battery. Combined maximum power output is 85kW.Toyota says like the RAV4, Camry and Corolla, the all-new Yaris sits on a Toyota New Global Architecture (TNGA) platform that is central to its lower centre of gravity and more rigid body.The company says the Yaris is the only vehicle in its class with front-centre airbags, designed to protect the heads of front-seat occupants, and a driver-assist system that can detect and automatically brake to help avoid pedestrians and vehicles at intersections.These technologies are standard across the range, other driver-assist features include a pre-collision system with autonomous emergency braking, and a secondary brake that can further slow the vehicle after an accident.Toyota says it’s the first time such technology has been offered on a vehicle in Australia and it is expected to be progressively introduced to the brand's other models.Toyota Australia sales and marketing vice-president Sean Hanley says the capability and features of the new Yaris goes beyond anything else offered in this segment and respond directly to the needs and preferences of compact-car buyers."Such an advanced level of engineering and specification will deliver long-term value to people buying their first new car, right through to those who are downsizing,” Hanley says.Yaris is available in two exterior colours, with ZR variants also available with two-tone paint for $450.A 270-litre cargo area incorporates a two-level deck board. Larger items can be accommodated with a 60:40 split-fold rear seat back.

Standard equipment on Ascent Sport includes Apple Carplay and Android Auto, LED daytime running lamps, tail and stop lamps; auto retractable door mirrors with LED turn signal lamps; and power windows.Additional standard equipment on X includes satellite navigation with pinch-and-zoom capability; speed-limit display and warnings; automatic air-conditioning; keyless smart entry; smart-start ignition button; soft-touch instrument panel; 15-inch alloy wheels; LED headlamps, indicators and rear combination lamps; and privacy glass.The ZR gains 16-inch alloys; rear spoiler; head-up display; sports front seats; blind-spot monitor; intelligent clearance sonar; parking support brake system; and paddle shifter on the petrol variant.

2020 Yaris prices:Ascent Sport manual $22,130Ascent Sport CVT $23,630SX CVT $27,020ZR CVT $30,100SX Hybrid CVT $29,020ZR Hybrid CVT $32,100

MORE THAN 250,000 SALES LATER, NEW YARIS ARRIVES

SHOWROOM


ALL-NEW D-MAX ARRIVES IN DEALERSHIPS EARLY

Isuzu Ute Australia says stock of all the all-new D-Max Ute began arriving into dealerships during

late August for the official sale date of September 1.

The all-new D-Max will offer three cabin types: Single cab, space cab and crew cab, with four model variants; SX, LS-M, LS-U and the new range-topping X-Terrain.

There will be introductory drive-away pricing of $29,990 for the 4x2 D-Max single cab chassis SX manual, and $58,990 for the D-Max X-Terrain.

All D-Max models are powered by a re-engineered 3-Litre, 140kW/450Nm turbo-diesel engine, matched with new 6-speed manual or automatic transmissions.

Isuzu Ute says the new D-Max provides improved off-road capability with a rear diff-lock and up to 800mm wading depth and an upgraded Terrain Command System.

Android Auto and wireless Apple CarPlay are standard features across the range, as is the Isuzu's intelligent driver assistance system (IDAS), which includes adaptive cruise control with stop & go traffic functionality, autonomous emergency braking, blind spot monitoring, and

lane departure prevention.

IDAS was extensively tested locally, which has enabled Isuzu engineers to finely calibrate the traffic sign recognition (TSR) for Australian roads.

All D-Max models, including cab chassis models come standard with a reverse camera including integrated parking lines and a rear-step bumper, which houses the rear IDAS radar sensors — that also take care of the rear cross traffic alert and blind spot monitoring.

Isuzu Utes says more than four million kilometres and six years of development testing was invested into the all-new seventh-generation D-MAX, to become the most advanced, refined and sophisticated vehicle it has produced yet.

The new X-Terrain comes with remote engine start, smart entry and start, walk away door lock, and a piano black and leather-accented interior. It is equipped with a 9-inch infotainment display with DAB+ radio, voice recognition, and Sat-Nav.

The exterior design follows similar modern cues, including front and rear underbody spoilers, roof rails, fender flares, an aero sports bar, roller tonneau cover and tub liner, Isuzu Ute Australia says.

SHOWROOM

DRIVETRAIN MODEL BODY TYPE TRANSMISSION REAR TRAY RRP

4x2

Single Cab Chassis SX Single Cab MTCab

Chassis $ 32,200

Single Cab Chassis SX Single Cab ATCab

Chassis $ 34,200

Crew Cab Chassis SX Crew Cab ATCab

Chassis $ 40,700

Space Cab Ute SX Space Cab AT Ute $ 38,900

Crew Cab Ute SX Crew Cab AT Ute $ 41,900

Crew Cab Ute LS-U Crew Cab AT Ute $ 48,900

4x4

Single Cab Chassis SX Single Cab MTCab

Chassis $ 40,200

Single Cab Chassis SX Single Cab ATCab

Chassis $ 42,200

Space Cab Chassis SX Space Cab MTCab

Chassis $ 43,700

Space Cab Chassis SX Space Cab ATCab

Chassis $ 45,700

Crew Cab Chassis SX Crew Cab MTCab

Chassis $ 46,700

Crew Cab Chassis SX Crew Cab ATCab

Chassis $ 48,700

Crew Cab Ute SX Crew Cab MT Ute $ 47,900


Genesis Motors says its flagship GV8O SUV provides a foundation for a future line-up of SUV models

to grace its showrooms in Australia. It says the GV80 has an Australian-specific chassis tuning designed to deliver an optimal balance of comfort and enjoyment, which was developed locally during thousands of kilometres of driving across a variety of roads.Australian buyers have the option of four GV80 variants, with three different engine options, rear or all-wheel-drive, five or seven seats and an optional luxury package.“Having established Genesis in Australia as a maker of high-quality luxury cars, we now introduce the brand’s first SUV in the form of the all-new GV80,” Genesis Motors Australia chief executive officer Jun Heo says. “As well as appreciating the Genesis pillars of advanced technology, all-road capability and superior comfort, GV80 customers will be treated to the luxury of the Genesis-to-you service, and a convenient all-inclusive ownership experience,” he says.The GV80 range opens with the 2.5T rear-wheel-drive model priced from $90,600. It is powered by a 224kW/422Nm 2.5-litre four-cylinder turbocharged petrol engine and an 8-speed automatic.Standard appointments include a mood-lit cabin with genuine leather and wood-finished trim, a 14.5-inch HD touchscreen multimedia interface, panoramic sunroof, 20-inch alloy wheels and a power-operated tailgate.Safety features include: 10 airbags and a multi-function forward collision-avoidance assist (FCA) system, driver attention warning (DAW), blind-spot collision avoidance-assist (BCA), smart

cruise control (SCC) with stop and go and machine learning functions, and a surround view monitor (SVM) with 3D function.The next model in the line-up is the GV8O 2.5T AWD priced from $95,600. It pairs the petrol turbo with all-wheel drive, and inside the cabin brings a third-row to take seating capacity to seven.Next up is the GV80 3.0D AWD introduces straight six-cylinder 204kW/588Nm turbo diesel engine priced from $103,600The flagship GV80 3.5T AWD offers an all-new 279kW/530Nm 3.5-litre turbocharged petrol V6 engine priced from $108,600.Both the 3.0D AWD and 3.5T AWD are equipped with Genesis Adaptive Control Suspension (GACS), electro-mechanical limited slip differential (e-LSD) and 22-inch alloy wheels wrapped in 265/40 Michelin tyres.The optional $10,000 luxury package

offered on each of the four variants includes Nappa leather trim, a 12.3-inch full screen instrument cluster, three-zone climate control, soft close doors, an 18-way power adjustable driver’s seat with ergo motion massage function, and additional Genesis active safety control systems. Inside the GV80 the leather-finished cabin is offered with five interior colour combinations matched with four open pore real wood trims.Further cabin features include the 14.5-inch infotainment system touchscreen multimedia unit, integrated controller dial, 12.0-inch head-up display (HUD), and 12.3-inch 3D cluster (luxury package).Additional convenience and luxury features in GV80 include wireless smartphone charging, power-operated door latches (luxury package), and a 1050 Watt, 21-speaker Lexicon premium sound system.

FIRST GENESIS SUV TOUCHES DOWN IN AUSTRALIAN DEALERSHIPS

SHOWROOM

THE GENESIS GV80 COCKPIT, SHOWN IN THE LEFT -HAND DRIVE FORMAT.


The all-new Kia Carnival has gone on sale in Korea with sales in export markets due to commence

later this year says the manufacturer.Australian sales of the fourth-generation Kia people mover are planned to commence in the fourth quarter of 2020.Kia Motors Australia says further details of specification and pricing will be released closer to the vehicles on sale date.The manufacturer says the new Carnival has been designed to appeal to young families through its combination of space, flexibility and style.Based on a new mid-size platform, Kia Motors says the Carnival has been dubbed a “Grand Utility Vehicle”; offering greater space and efficiency than its predecessors – as well as all rivals in this segment. Kia Motors says the SUV-inspired design of the new Carnival is matched with a new interior with a range of technologies designed to assist drivers, while protecting and entertaining

occupants. Intelligent packaging, class-leading cargo capacity, and a range of storage areas throughout the cabin.It says the new Carnival benefits from a 30mm longer wheelbase (up to 3090mm) and 10mm wider body (up to 1995mm). The overall length of the new Carnival grows by 40mm to 5155mm, with a 30mm longer rear overhang (up to 1130mm), creating more space for third-row passengers and best-in-class luggage space.In its seven-seat configuration, the Carnival boasts Kia’s reclining “premium relaxation seat’ for second-row

occupants, with adjustable back, arm and leg rests providing “business class” seating. Kia Motors says with only the first row of seats in use, the Carnival offers boot space of up to 2905 litres (VDA, three-row configuration), with 627 litres available to use behind the third-row seats (to the upper edge of the seat backs). The lift-over height for the boot is 26mm lower than its predecessor at 640mm. The power tailgate and smart power-sliding rear passenger doors also facilitate access to the boot and cabin.Depending on market and specification, the new Carnival is available with a choice of up to three new engines. The most powerful engine in the line-up is a 3.5-litre GDi (gasoline direct injection) V6 producing up to 216kW and 355 Nm torque. This engine features an advanced GDi and multi-point injection (MPI) system, which optimises the combustion cycle depending on conditions to maximise power and efficiency. A 3.5-litre MPi V6 is also available, producing up to 200kW and 332 Nm torque. This features the same new integrated thermal management system as its GDi counterpart.A new 2.2-litre “Smartstream” diesel engine is also on offer in many markets. Producing up to 148kW and offering 440 Nm torque over a broad range of engine speeds, the new engine replaces its predecessor’s cast iron block for a 20kg lighter aluminium block. Furthermore, it features a range of measures that reduce friction, aid cooling, enhance efficiency and reduce emissions.All three engines are paired as standard with an eight-speed automatic transmission.

KIA SAYS ALL-NEW CARNIVAL IS A GRAND UTILITY VEHICLE

SHOWROOM


TOP 10 AUGUST

TOP 10 BRANDS

1. TOYOTA 12,449

2. MAZDA 6921

3. HYUNDAI 4525

4. KIA 4521

5. MITSUBISHI 4308

NEW VEHICLE SALES DECLINE 28%, VICTORIA DOWN 65.9%

The monthly VFACTS report released by the Federal Chamber of Automotive Industries (FCAI)

shows a continuing downturn in the automotive industry.

Its 60,986 new vehicle sales were reported during August 2020, down 28.8% from August 2019 when 85,633 sales were recorded.

On a year to date basis, VFACTS reported 575,906 sales for the eight months ending 31st August 2020, down 20.4% on the same period in 2019 when 723,283 sales were reported.

On a state-by-state basis, the effects of the COVID-19 pandemic on the market is clear. The best performing state was the Australian Capital Territory with 1,312 sales, up 0.4% on August 2019. New South Wales, Australia’s largest market, recorded 23,431 sales for the month, down 16.3% cent on August 2019.

Victoria, which is currently under Stage 4 restrictions, recorded a 65.9% downturn with 8347 sales for the month.

FCAI chief executive Tony Weber says that while the overall industry was showing some response to stimulus packages, the story for Victoria was less than promising.

“The industry has moved to implement robust COVIDSafe protocols to ensure the health and wellbeing of employees and customers is preserved.

“However, it is difficult for our members and their Victorian dealer

networks under the current Stage 4 restrictions, and this is reflected in the reduced sales figures.

“While we have the utmost respect for health priorities, the automotive industry supports the re-opening of our economy under appropriate COVIDSafe protocols.

“There’s no doubt our members are feeling the pinch. The move to commence the reopening of industry and markets, especially in Victoria, needs to start now,” Weber says.

Toyota was the top selling brand for the month, with 12,449 sales, followed by Mazda with 6921 sales, Hyundai with 4525 sales, Kia with 4521 sales, and Mitsubishi with 4308 sales.

There were 14,758 passenger vehicle sales (24.2% market share), 32,378 SUV sales (53.1% market share), and 11,234 light commercial sales (18.4% market share) during the month.

The Toyota RAV4 was the best-selling vehicle in Australia in August 2020 with 4825 units sold, a staggering increase of 140% over the same month in 2019 when the model recorded 2006 sales.

In second place the Ford Ranger recorded 2935 sales in August, a 7% decline from the previous corresponding period's tally of 3181.

In third place the Mazda CX-5 recorded 1884 sales in August 2020, a 4.8% increase over the 1797 sales recorded in the same period last year.


TOP 10 BRANDS

6. FORD 3898

7. VOLKSWAGEN 2785

8. NISSAN 2380

9. MERCEDES-BENZ 2064

10. SUBARU 2052

TOP 10 AUGUST

1. Toyota Corolla

1464

3. Kia Cerato

1264

6. Honda Civic

244

2. Hyundai i30

1429

5. Volkswagen Golf

544

4. Mazda 3

984

7. Subaru Impreza

214

8. Hyundai Elantra

229

9. Subaru WRX

129

10. Ford Focus

99

1. Kia Seltos

1046

3. Hyundai Kona

846

6. Subaru XV

539

2. Mitsubishi ASX

929

5. Honda HR-V

649

4. Mazda CX-30

753

7. Suzuki Vitara

469

8. Mitsubishi Eclipse Cross

398

9. MG ZS

317

10. Toyota C-HR

291

SMALL PASSENGER CARS SUV SMALL <$40K


ELECTRICS AND HYBRIDS PIP PETROL

The trend continues with electrics, plug-in hybrids (PHEVs) and hybrids having the jump on fossil

fuelled vehicles in the August VFACTs new vehicle sales report released by the Federal Chamber of Automotive Industries (FCAI).There have now been 29 consecutive months of diminishing sales in this industry, FCAI chief executive Tony Weber says.That might be true for diesel and petrol-powered vehicles – not so for electrics and hybrids, generally increasing in sales during the same period.While there’s little doubt the COVID-19 pandemic has hit the market hard (the Australian Bureau of Statistics says Gross Domestic Product dropped a record 7% for the June quarter), electrics and hybrids continue to rise in most sectors.“While we have the utmost respect for essential health priorities, the automotive industry supports the re-opening of our economy under appropriate COVIDSafe protocols,” Weber says.In the popular SUV market, hybrids rocketed by 358.4% during August up to 4809 compared with 1049 for the same month in 2019. The year-to-date (YTD) figure was almost as spectacular, hybrid SUV sales going up 295.1% from 5205 in 2019 to 20,566 this year.PHEV SUVs went from 60 up to 74 in August comparisons (2019 and 2020 respectively) – a 23% rise, while a slight drop in YTD totals was recorded – from 793 in 2019 to 763 in 2020 (down 3.8%).Electric SUVs might have slumped somewhat in monthly totals – (73 in August 2019 to 40 this August, down 45.2%) but they were still up on YTD comparisons (435 in 2019 to 446 YTD 2020, up 2.5%).That’s pretty good when compared with diesel and petrol SUVs, their percentage dropping well into

double figures (from around minus 15.6% to minus 37.1%).The passenger sector appears to take the biggest hit, with nearly all fuel categories down.Only PHEVs appeared to make slight headway in monthly comparisons, going up by just one (3.6%) from 28 in August 2019 to 29 in August 2020. Both electric and hybrid new vehicle sales recorded a slight monthly drop in the passenger category – electrics going from 120 to 115 (down 4.2%) and hybrids from 1796 to 1627 (down 9.4%).But in YTD totals, all three (electric, PHEV and hybrid) were well up at 31.8% (459 to 605), 43.7% (158 to 227) and 20.1% (13,129 to 15,770) respectively.No sales of new electric light commercial vehicles were recorded for

August 2020, with just three sold in August 2019, and YTD totals remaining the same at 13 in both years.In a summary of all three categories (passenger, SUV, light commercial), hybrids topped the field on increases with 126.2% overall in monthly comparisons and 98.2% in YTD comparisons.PHEVs were next with 17% (monthly) and 4.1% (YTD increases), followed by electric at minus 20.9% monthly and plus 17.3% YTD, while diesel and petrol vehicle sales were well into negative territory on all counts.It’s certainly alternative fuels to the fore, and that trend is likely to continue well into the future.

NEW VEHICLE SALES BY BUYER TYPE AND FUEL TYPE AUG 2020

Month YTD Variance +/- Vol. & %

Total Market MTH 2019 2020 2019 MTH YTD MTH YTD

ELECTRIC

Passenger 115 120 605 459 -5 146 -4.2% 31.8%SUV Private 40 73 446 435 -33 11 -45.2% 2.5%Light Commercial Non-Private 0 3 13 13 -3 0 -100.0% 0.0%

Sub Total 155 196 1064 907 -41 157 -20.9% 17.3%

PHEV

Passenger 29 28 227 158 1 69 3.6% 43.7%SUV 74 60 763 793 14 -30 23.3% -3.8%Sub Total 103 88 990 951 15 39 17.0% 4.1%

HYBRID

Passenger 1627 1796 15,770 13,129 -169 2641 -9.4% 20.1%SUV 4809 1049 20,566 5205 3760 15,361 358.4% 295.1%Sub Total 6436 2845 36,336 18,334 3591 18,002 126.2% 98.2%

TOTAL 6694 3129 38,390 20,192 3565 18,198 113.9% 90.1%

TONY WEBER


HIGHLIGHTS OF THE MONTH

NEW CAR DEALERS WELCOME JOBKEEPER 2.0 CHANGES

LISTING FEES WAIVED FOR VICTORIAN METRO CAR DEALERS

The Australian Automotive Dealer Association (AADA) has welcomed the government’s changes to the JobKeeper 2.0 programme.“The changes announced will provide car retailers and their employees in Victoria and throughout Australia with a great degree of comfort during a very difficult and uncertain time,” AADA chief executive James Voortman says.“These changes will help save jobs, and on behalf of the industry, I would like to thank the treasurer and the entire government for listening and taking on board concerns articulated by the many businesses across the country,” he says.“Under the previous criteria, the industry was facing a situation in which very few, if any, car dealers would have been able to access JobKeeper beyond September 27.

Autotrader, Gumtree and CarsGuide are waiving all dealer listing fees for Victorian metropolitan dealers for the duration of the stage four coronavirus restrictions.The support offer will be automatically applied to applicable dealers’ invoices.“As the automotive industry continues to navigate through the pandemic, the most recent restrictions in Victoria present further challenges to our dealer partners in the region,” Gumtree Australia head of motors Richard Dicello says.“Ultimately, we’re all in this together, and we hope that this initiative will help alleviate some of the financial pressures dealerships are facing as a result of the pandemic,” he says.

DEALERTALK

GPC PROVIDES INCOME SUPPORT TO LOCKDOWN-AFFECTED VICTORIAN EMPLOYEES

Automotive aftermarket supplier General Parts Company (GPC) Asia Pacific says it will continue to support the income of full-time, part-time, and casual staff members based in Melbourne during the current stage four lockdown.The announcement applies to more than 1200 staff across the Repco, NAPA and AMX Superstore networks, all part of the GPC Asia Pacific portfolio. “At a time like this, it’s incredibly important that companies who are able to, step-up and do the right thing to support employees,” GPC Asia Pacific chief executive officer and managing director Rob Cameron says.“GPC Asia Pacific’s businesses are performing well in Australia and benefitting from the New Zealand economy moving back to a strong footing. Therefore, it is right and appropriate we do all we can to support our Melbourne team members during this period.”

CAPRICORN CO-OPERATIVE UNVEILS NEW MEMBERSHIP LOYALTY PROGRAMME AND WEBSITE

In response to member feedback, the Capricorn Cooperative has joined forces with incentives provider 212F to create a new loyalty programme.Capricorn’s 20,000 plus members across Australia and New Zealand can now access the brand new Capricorn Rewards website at: www.capricorn.coop/rewardprogram. Ensuring that Capricorn members make the most of the rewards points they earn on parts, equipment and business essentials purchased from Capricorn preferred suppliers, the new Capricorn Rewards website offers a huge selection of merchandise across a range of product categories.“Our new Capricorn Rewards website is yet another way for our members to make the most from being a part of Australasia’s largest automotive cooperative and be rewarded for their hard work,” Capricorn Automotive chief executive officer Bradley Gannon says.


DEALERTALK

HIGHLIGHTS OF THE MONTH

AFMA POSTPONES NOVEMBER 2020 CONFERENCE TO MAY 2021

USED CAR PRICES SURGE 30% BETWEEN APRIL AND JULY

The Australian Fleet Management Association (AfMA) has decided to postpone its annual conference and exhibition from November 2020 to May 2021.It has been rescheduled to May 20-21, 2021 at the Melbourne Convention and Exhibition Centre.The fleet management organisation says the current uncertainty of COVID-19 prevails, following the stage four restrictions which engulfed Victoria on August 2 for at least six weeks.It says after the successful completion of stage four restrictions in Melbourne, the return to normal is likely to take a number of weeks as well.

The most recent Moody’s Analytics used vehicle price index report says Australian used vehicle prices have risen more than 30.8% from April to the end of July.It says used vehicle prices are 16.2% higher now than pre-pandemic prices in January 2020.Moody’s Analytics senior economist Michael Brisson told the ABC that the slowdown in new vehicle sales within Australia in the last 24 months has put considerably fewer used vehicles into circulation.According to Moody’s Analytics, a buyer looking to spend $10,000 on an older Ford Ranger at the start of 2020, would have paid an additional $1600 for the same vehicle in June and July.

SUPPLY BECOMING AN ISSUE SAYS VICTORIAN REGIONAL DEALER

A regional Victoria dealer principal says business has been better during this particular stage three lockdown in the state than the previous episode earlier in 2020.But he warns that supply of parts and new vehicles for some brands is becoming an issue, as well as the perennial problem of sourcing quality used vehicles.“Our service departments have held up surprisingly well,” Norton Motor Group dealer principal Marcus Norton says.“Overall things have been significantly better this lockdown than the first time we went to stage three.

COVID-19 CREATES MORE COMPETITION IN AUSTRALIAN MOTOR INSURANCE

The decline in the Australian motor insurance market due to COVID-19 is creating a benefit for motorists as car insurance providers seek new ways to attract new business.Analytics company GlobalData expects the Australian motor insurance market to contract by 4.4% in 2020 as a direct result of COVID-19, rather than grow 3.6% as it did in 2019.It says the motor insurance business is expected to register a compound annual growth rate (CAGR) of 1.6% over FY 2019-2024, primarily because of the ongoing economic uncertainty and long-term downturn in the automotive sector. “Car sales in Australia declined by 7.8% during 2018-2019 due to tighter lending conditions and lower consumer spending,” GlobalData insurance analyst Deblina Mitra says.

september 2020 .com.au mitsubishi’s top dealers · editor robert barry reached out to some now...

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