Report into Australia’s automotive industry reveals unprecedented change

Geoff Gwilym

Car dealers operate on 2.6 percent profit margins, automotive employs 379,365 people, and electric vehicles make up 0.01 percent of the nation’s fleet, a new report into Australia’s automotive industry reveals.
The first comprehensive analysis of the nation’s automotive industry in three years, launched today by Senator Nick Xenophon at Parliament House, Canberra, explores the full scope of the industry.
At a time of unprecedented change, the report uncovers the automotive industry’s economic contribution to the nation, business operating conditions, and detailed analysis of skills shortages and training requirements, along with insights into the direction automotive is headed.
“A key finding in the report is that Australia’s automotive industry is here to stay. Passenger vehicle manufacturing will cease in October this year, but that is, and always has been, a small component of the entire automotive industry, which is still very robust with 69,365 businesses operating across the country,” said VACC Executive Director, Geoff Gwilym.
Key findings:
• The automotive industry contributes $37.1 billion to the Australian economy (2.2 percent of GDP).
• Automotive repair and maintenance businesses account for 54 percent of the automotive industry; the next largest sector is motor vehicle retailing at 8.3 percent.
• Automotive vehicle and parts manufacturing accounts for 4.4 percent of the industry.
• Small and family-run enterprises account for 96.5 percent of automotive businesses.
• Sole proprietors run 41.9 percent of auto businesses and 54.6 percent employ 1–19 employees.
• The average age of Australia’s vehicle fleet is 10.1 years.
• Between 2015 and 2016, 800,000 registered vehicles (excluding motorcycles) were scrapped.
• Profit margins for repair/maintenance businesses in 2015/16 was 12.2 percent; fuel retailing was 2.4 percent.
• There are 69 vehicle marques operating in Australia, amongst the most in the world.

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AVANT-GARDE PPG COLOUR ADDS GLAMOUR TO CHEVROLET AT SHANGHAI

When the Chevrolet FNR-X made its world premiere at Auto Shanghai 2017, it wasn’t just the sophisticated styling that impressed the audience. It was also the brilliant metallic colour created by PPG’s OEM Colour Styling Team that helped it steal the show.
This first all-purpose sports concept vehicle from SAIC General Motors, was designed at the company’s Pan Asia Technical Automotive Centre (PATAC). In order to showcase the off-road capability and performance of the FNR-X, PATAC designers and PPG colour experts developed the special “rhenium silver” colour that mimics the look of high-gloss liquid metal and gives the car its futuristic, outer-space look. The basis for rhenium silver originates from PPG’s “Kulture” collection colour trend palette for 2020 automotive models.
The palette’s creative designs match the cutting-edge technologies of the FNR-X, says David Cui, PPG Product Manager and Market Development Director, Automotive Coatings, Asia Pacific.
“SAIC General Motors is one of PPG automotive coatings’ most important OEM customers. We are pleased to team with them to develop exciting new colours. Collaboration helps us better understand our clients’ needs while broadening our knowledge of colour styling and enhancing our research and development capabilities and service quality.”

ACCC DRAFT REPORT VINDICATES A DECADE OF AAAA CAMPAIGNING TO SUPPORT CONSUMERS’ RIGHT TO CHOOSE THEIR OWN REPAIRER

 

Stuart Charity

The Australian Automotive Aftermarket Association (AAAA) welcomes the Australian Competition and Consumer Commission (ACCC) Draft Report on the New Car Retailing Industry which was released today.
Among many important recommendations, the ACCC’s Draft Report recommends that a mandatory scheme be introduced to ensure car manufacturers share real time technical information with independent repairers, on commercially fair and reasonable terms. The mandatory scheme would provide independent repairers with access to the same technical information, software and codes which all car companies operating in Australia currently only make available to their authorised dealers and preferred repairer networks.
The ACCC investigation also found that there is a dealer gross profit margin of 64% on vehicle servicing. This margin is important to the dealers and it is protected by car manufacturers ensuring that critical servicing and repair information is continually withheld from independent repairers. The AAAA has advocated for US data sharing laws to be implemented in Australia on behalf of many thousands of independent repairers and Australia’s 17 million car owners.
AAAA Executive Director Stuart Charity stated, “This is an interim report and there is still a great deal of work to be done to ensure that the ACCC recommendations are implemented. It is however a great sign that after a 12 month investigation, our independent competition watchdog has now verified what we have been saying for over 10 years. Our opponents have argued that consumers have choice, that car manufacturers already share all repair and service information, that the voluntary agreement signed in 2014 is working – yet all of these positions are not supported by the findings of the ACCC Draft Report issued today.
The highly detailed 162 page ACCC Draft Report follows a thorough investigation that has involved many AAAA member independent repairers across Australia. It clearly outlines that while there is competition for the purchase of new cars, consumers have been severely restricted in their choices when it comes to vehicle repair and servicing.
The ACCC Draft Report also detailed the car industry practice of misleading consumers into believing that their new car warranties would become void if their cars were serviced outside the dealer network, along with consumers being forced to sign non-disclosure statements to access remedies relating to known vehicle faults.
The ACCC has also commenced enforcement action against a number of car companies following the discovery of a range of other Australian Consumer Law contraventions that were uncovered as result of this investigation.
“We look forward to working together with the ACCC and the Federal Government to ensure that consumers are fully protected by mandating fair competition for the servicing and repair of their vehicles. Together with more than 2,500 AAAA member companies, we are determined to ensure that these important ACCC recommendations are implemented in full,” Mr Charity added.

Continuing the legacy…Joe and Josephine McFadries

It’s great to be directly involved in the collision repair industry once again, particularly at such an exciting and challenging time. As the new editor and owner of the National Collision Repairer magazine I look forward to continuing the legacy created by David and Chris back in 2005. With a long history in the automotive coatings industry across Australia, New Zealand and Southeast Asia, my passion for the industry continued to grow. This made the decision to acquire the magazine one of the easiest decisions I’ve ever had to make – when the opportunity came along, both Josephine and I jumped at it. David and Chris have done a great job and it is our intention to continue the evolution of the magazine in line with the ever-changing environment in which we operate. The industry has provided me some great opportunities and through the magazine I look forward to actively participating and making a lasting contribution to the future of the industry.
Comment from David Newton-Ross: “In Joe and Josephine we have the perfect team to continue to provide to the industry what I consider to be the best magazine on the market for our industry. Their background and passion for the industry will become evident to everyone as the magazine continues to improve and provide information, education and entertainment into the future. I am looking forward to my retirement and to receiving my monthly issue of the National Collision Repairer magazine as I am still very interested in the happenings and activity within the industry. My thanks and best wishes go to everyone who has supported and helped us over the years and of course to Joe and Josephine – every success for the future.”

Dale Earnhardt Jr.’s Last NASCAR Cup Series Car Revealed Live on QVC from Axalta’s Customer Experience Center

Dale Earnhardt Jr., driver of the No. 88 Axalta Chevrolet SS for Hendrick Motorsports, and Craig Stephens, Director of Collision Services at AutoNation, appeared on QVC® during the “Dale Earnhardt Jr. Appreci88ion Tour” broadcast. It was filmed live from the Axalta Coating Systems Customer Experience Center in Concord, North Carolina, to reveal the paint scheme that will be featured on the No. 88 Axalta Chevrolet SS for Earnhardt’s final start as a full-time NASCAR® Cup Series driver at Homestead-Miami Speedway on November 19. The show also featured an assortment of die-cast model cars, apparel and other licensed collectibles.
Axalta will partner with and feature AutoNation on the car for the final race. The special-edition paint scheme is a tribute to the No. 8 Chevrolet that NASCAR’s 14-time most popular driver drove in his first Cup races in 1999. The car is adorned with the Axalta emblem on the hood and the AutoNation logo on the roof and rear panels.
“We enjoy our partnership with Axalta and were grateful to be included in such a momentous event in racing,” said Mike Jackson, AutoNation Chairman, CEO, and President.
Axalta Coating Systems is a leading global supplier of liquid and powder coatings. The Customer Experience Center is a state-of-the-art, 36,000 square feet training and conference complex designed to serve Axalta’s refinish, transportation OEM, and industrial customers, in person and remotely, and is located on the Hendrick Motorsports campus adjacent to some of the finest automotive technology and expertise in the world.
“Axalta’s Customer Experience Center is a world class facility outfitted with the latest technology that is designed to boost our customers’ productivity and efficiency. It served as an excellent venue for QVC,” said Mike Carr, Axalta President, Americas. “We wish Dale every success at Homestead and are excited to associate the paint and other coatings that we supply with the technology that underpins racing. It is also thrilling to share this moment of racing history with our customer, AutoNation.”

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General Motors to certify auto body shops in 2018

 

 

 

General Motors has announced it would “launch a comprehensive collision certification program in 2018,” adding what Statista calls the nation’s No. 1 automaker to the list of OEMs developing and recommending customers to auto body shop networks.

“Today’s certification programs have to evolve to keep up with the rapid-fire pace of technological innovation in the auto industry, especially in areas like safety systems,” GM customer care and aftersales collision manager John Eck said in a statement. “Our new program is being designed to measure critical behaviors and procedures that will help ensure every collision repair is done to the highest standards, whether the work is done at a dealership, an independent body shop or by a multi-shop operator.”

Eck has in the past said GM would want to verify repair quality should it develop a certification problem — not just whether the shop is on paper qualified in equipment and training to repair the vehicles. The program described suggests the OEM would indeed check the shops’ work in some fashion.

To read the complete article check out the following link: http://www.repairerdrivennews.com/2017/07/25/general-motors-to-certify-auto-body-shops-in-2018/

This article is courtesy of John Huetter and Repairer Driven News . Check out their website at http://www.repairerdrivennews.com where you will find so much more information.

Editor: We shall be watching this move with interest

 

 

GET EVERYTHING YOU NEED TO RUN YOUR BUSINESS FROM YOUR CAPRICORN TRADE ACCOUNT

As nearly 20,000 Capricorn Members across Australia and New Zealand will attest, purchasing automotive parts is just easier with Capricorn.

Replacing multiple supplier accounts for a single all inclusive monthly account, gaining instant credit with all Capricorn Preferred Suppliers and earning Capricorn Reward Points for every dollar spent on eligible purchases – just for running your business.

Aside from automotive parts, Capricorn Members are also able to purchase almost everything that they need to run their repair workshop or sales businesses through their Capricorn account.

The many other necessities of running a business are also covered by Capricorn Preferred Suppliers across Australia. In fact, almost everything that Capricorn’s Members need can indeed be purchased on their reward point earning Capricorn account.

Computers and other electronic requirements, snacks for staff and for customer waiting areas, even pot plants and beauty supplies are provided by Capricorn Preferred Suppliers. A full range of office stationery, office equipment, smartphones, envelopes, pens, calculators and many more essential products can also be purchased and billed to your convenient Capricorn Trade Account monthly statement.

Outside of the office, Capricorn Members can enjoy everything from family holidays, travel products, audio entertainment equipment and computers, through to many more everyday purchase items.

The more Capricorn Members use their trade account, the more streamlined they become with fewer bills to pay, less paperwork to handle, and much more time to concentrate on running their businesses. Members can also earn valuable reward points on everyday items too when using their trade account.

Capricorn exists for its Members, who are also shareholders in the success of this four and a half decade strong Australian co-operative structured company. By making more everyday purchases using their Capricorn Trade Account, Members are also strengthening the cooperative.

Capricorn isn’t only for automotive parts purchases – it is for everything that you need to run your business successfully. To find out more about the non-automotive products, office essentials and other everyday items that earn Capricorn Reward Points, check the Capricorn Purple Pages directory.

To join Capricorn, Australasia’s largest automotive and general products buying group, email join@capricorn.coop or visit Capricorn online at www.capricorn.com.au.