CAANF Conference Presentation 21-02-2011

Automotive Accountants Network Forum

ConferenceHealesville Country Club20th - 21st February 2011

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This presentation has been prepared by Colledge’s for the general information of its clients and forum attendees. While the information herein has been prepared with all reasonable care and derived from sources believed to be accurate, no responsibility or liability is accepted by Colledge’s or any of its affiliations, for any errors or omissions, including liability to any person of negligence or otherwise.

Recommendations may not be appropriate in all circumstances and clients must consider their own personal objectives and financial advice before acting on recommendations in this presentation.

Colledge’s (ABN 52 439 950 641)

For more information, contact Angelo Sirianni on 03 9851 6500 or email [email protected]

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mailto:[email protected]

http://www.colledges.com.au/

Feel free to ask questions

Show respect for presenters and colleagues

One discussion at a time

Please switch phones to “silent”

Enjoy the forum!

For more information, contact Angelo Sirianni on 03 9851 6500 or email [email protected]

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House Rules


http://www.colledges.com.au/

Quote for the day...

“The future depends on what we do in the

present”

Mahatma Gandhi (Spiritual/Political Leader and Politician)

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Agenda Introduction

- Whiteboard Items 2011 Year Ahead Key Issues Facing Dealerships Automotive Industry Social Media Marketing Presentation Veda Auto Presentation Whiteboard Items

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Introduction

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Whiteboard Items

1. Vehicle preparation/yard staff measurement of cleaners to retail units

2. NCCP. Does anyone have a licence?3. Feasibility of Chinese franchises 4. Does anyone use Facebook/Twitter?

-Is it effective?5. Scanning documents6. Customer deposits

- How are people dealing with them?7. How to keep staff motivated8. What is considered a benchmark for internal

warranties?Founding member of

2011 Year Ahead

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Issues for 2011

Planning Considerations for 2011

Issues for 2011

Market forecasts between 1,030,000 to

1,050,000

Some Manufacturers forecast 1,200,000 in 2015

Competitive and crowded market place:

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Australia US

Makes 44 47

Models 278 321

Market 1 million 16 million*

* biggest ever market

Issues for 2011

New Models by Manufacturers- Ford Ranger Platform- VW Pick-up- Toyota FJ Cruiser

New Manufacturers – Chinese & European Brands- Chery- Geely- Foton- Opel

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Issues for 2011

Strong Performers for 2011- Toyota - Mazda- Holden - Great Wall Motors- Hyundai

Steady Performers for 2011- Ford - Mitsubishi

- Kia - Nissan

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Issues for 2011

Improvement needed for 2011- Honda- Peugeot

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Full Employment- Technicians- Sales Consultants- Service Advisors

Mining Industry

Baggage Handlers

- AirportsFounding member of


Parity $AUD- Imports- Exports

Information Technology- Big decisions in 2011 → In-house services → Off-site services → Cloud computing- Cost/Benefit analysis- Security issues

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Social Media- How does it work?- Is it effective?- Link to website

National Broadband Network- Speed - Timing- Costs

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Environmental Concerns- Price of carbon- Alternative fuels technology

Ongoing Cost Pressures- Utilities- Wages pressure

Inflationary- $AUD- Food prices- Summer of Natural Disasters

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Dealership Issues for 2011

Regulations

- Australian Consumer Law

- NCCPA

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Wages Pressures

- Remuneration

- Recognition

- Retention

- Career paths

- Training programmes

- QualificationsFounding member of


Remuneration

- Competitive salary levels

- Motivational

- Realistic

- Productive

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Recognition

- Job description

- Performance reviews

- KPI’s

- Promotions

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Retention

- Career Path

- Training programme

- Qualifications

- On the job training

- Off the job training

- Meaningful workFounding member of


Career Path

- Real defined career paths

- Promotion prospects

- Interesting work

- Skill attainment

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Training Programmes

- Are these part of the dealership culture

- On the job training → rotations

→ different roles

→ mentoring

- Off the job training → TAFE & Colledges

→ factory programmes

→ industry or third party

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Qualifications

- Are these sought or rewarded

- Encouraged and recognised

- As part of an ongoing HR programme

- How critical

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Dealership Growth

- Customer retention

- Differentiation

- Service Intervals

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Service department → Key to customer retention

- Fix the vehicle

- Early detection

- Care for customer

- Trust

- Loyalty programmes

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Auto Industry

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Auto Industry

Automotive News

- Toyota pays customers to tweet

- NADA report

- NADA top factors for 2011

- Australia/USA comparison

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Auto Industry

Chinese Overview- The Country- The Automotive- Geely Holding Group- Foton- Great Wall Motors- Chery- BYD Automotive

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Auto Industry

The Hybrid Story

- What is hybrid?

- The Manufacturers

- Dealer education

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Auto Industry

Management & Staffing

- Developing a career path environment

- Super efficient dealership staffing model

elements

→ proper recruitment

→ effective on the job training

→ retention & measurementFounding member of

Auto Industry

Management & Staffing

- Dealerships to conduct their own HR research→ review existing staff profiles→ right profile – right job→ incentives→ review existing training→ costs→ training & educational budget→ career path ?→ expectations→ review before final policy approved

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Morning Tea

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Social Media Presentation

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Guest speaker: Hamish Jones

What the Hell is Social Media?

And Why Should I Care?-Hamish Jones

21/2/2011

Who am I?

• MA (Public Relations)– Research thesis was about Facebook

• Head of Marketing, Digital Strategy & Implementation at Altitude Communications

• Social Media Consultant at White Echo• Founder of Greenlight Communications- full

service PR Agency

So What is Social Media?

• Social media platforms allow for businesses to interact with consumers, and friends to interact with friends and so on. It is a one to one platform as well as a one to many platform.

• Social Media provides real-time research and invaluable feedback from existing and potential clients.

Some Interesting Statistics

• Compared to traditional media, social media has grown at an unparalleled rate, interestingly, to reach 50 million users:– It took Radio 38 years – TV took 13 years– Internet took 4 years– iPod only 3 years– Facebook added 100 million users in less than 9 months– Apple Apps – 1 Billion downloads in 9 months

• Latest figures show that Facebook has over 500 million users, Twitter over 200 million and MySpace has over 110 million users.

Facebook

• As of July 2010, Facebook has more than 500 million active users worldwide

– 50 % of active users log onto Facebook in any given day– The average user has 130 friends– People spend over 700 billion minutes per month on Facebook– 70% of Facebook users are outside the USA– More than 150 million active users currently access Facebook via a

mobile device– Two-thirds of comScore’s U.S. Top 100 websites and half of

comScore’s Global Top 100 websites have integrated with Facebook

Twitter

• Twitter has over 106 million users with 300,000 new accounts being registered each day

• Twitter gets 3 billion requests each day generated by over 180 million users

• Users are sending over 55 million tweets per day, or around 640 tweets per second

• Australia is represented in the top 10 countries for twitter users

So Why Do I Need Social Media?

• Your customers are already talking about you online, whether you are online or not.

• Mainstream Advertising- TV, Radio and Newspaper, is not as effective as it used to be.

• Nearly half the Australian population is on Facebook!

• 40% of those with a Facebook profile connect with their favourite brands.

How Could You Use Social Media?

• Many Options and Many Platforms. Need to be active on main platforms- at least Facebook, Twitter and LinkedIn

• Should also consider YouTube and Foursquare

• Which ones are most effective?

Give your fans advanced previews!

• If you are getting a new car in stock, let your social media fans know first.

• If you get some accessories or clothing in, let your social media fans know first.

• Make them feel special and give them an incentive to follow you.

Share your expertise?

• Basic maintenance

• Interior Care

• Getting a longer life out or your tires

• Offer driving tips online. Just because someone has a licence doesn’t mean they know what they are doing.

Show what your company does

• If you have your own service centre take some videos of the mechanics caring for a car. Ask them about what they are doing.

• You can get a suitable camera for about $200

• Interview your sales team about what there favourite car is.

• Make your people ‘real’ instead of cogs in a machine

• Build trust.

Deal with a Crisis

• If something happens for example a recall, you can quickly get on the front foot.

• Let your fans know that you still love them and you want to help resolve their problem.

• You can also see whether someone has had a negative experience and respond in a timely manner.

• People are talking about you. It’s up to you to listen!

Reward Customer Loyalty

• Have Facebook or Twitter only competitions

• Give away promo material or discounts on servicing.

See what people are saying about you

• Deal with negative comments and experiences

• Rebroadcast positive feedback

• Don’t get defensive about negative feedback in an open forum- if it can’t be fixed online, take it offline.

Keep Customers in the loop

• New car models

• Changes in processes- e.g. servicing

• General Car news

• Racing News- Formula 1, Rally etc

Find potential customers.

• Directly, and personally, contact people who:

– Talk about buying a car– Ask their own followers about car advice– Complain about their current car

Widen Your Market

• Twitter and Facebook are bigger than the local paper and the radio– Broadcast sales online to your followers– Give them incentives to retweet or post to their

own Facebook profiles (maybe a competition)

Targeted Online Advertising

• Facebook allows businesses to run ads that attract specific groups of users based on what information they include in their profiles.

See where your customers visit

• Foursquare- people check in at various locations

• Businesses can track other places their visitors check in at

• You can offer specials to visitors that check in at your business

Let customers talk to each other

• Let your passionate car fans connect with other passionate car fans to share tips and advice.

• Help your fans create a positive brand message for your business.

• Customers can also share advice about car care etc- but make sure you don’t let people publish stuff that may actually damage someone’s car.

Publish Customer Content

• Fan Videos (as long as they are not being hoons.)

• Testimonials

• Pictures

• Stories

Help others promote your business

• If there is a passionate blogger about your car brand look at ways that you can support them in return for positive messages about your business

Cultivate Relationships

• Purchasing a car is a long process

• Connect with prospective purchasers early, provide ongoing valuable information, and come purchase time you are at a huge advantage compared with your competitors.

Find Staff Online

• Advertise on your social networks that you are looking for staff and suggest that passionate fans consider applying or passing on the job opportunity to their friends.

So Should You Cancel Your Offline Advertising?

• Of course not!

• But maybe you should look at offline opportunities to drive people to your social media profiles.

What you shouldn’t do.

• Don’t be overly promotional– Social media is not an advertising platform.

• Don’t get in to a fight with someone, even if you are wrong– You are never going to win online.

White Echo Services

• Social Media Management– If you know you should be involved with Social Media but

don’t have the time, let us manage your social media• Social Media Tips and Advice subscription

– A monthly subscription service where we offer advice on how you can better manage your own social media

• Social Media Stats and Interpretation– Let us analyse your Social Media stats and provide you a

monthly report on what is working and what is not working.• For more information, email

[email protected]


Lunch

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Guest speaker: Sharon Sheather

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Veda Auto Presentation

64 COMMERCIAL IN CONFIDENCEValuations Solution© Veda Advantage August 2008


Written-Off Vehicles

Impact to Victoria Motor Dealerships

Presented by

Sharon SheatherNational Sales Manager- Veda Auto

Veda Advantage

Veda Auto – Overview © Veda Advantage 2009


The Australian automotive market is changingIn the next 12 months alone, your dealership will be impacted by:

Written-off Vehicle Reforms in NSW as 31 January 2011

REVS will be replaced with the Personal Property Securities Register (PPSR)

National Consumer Credit Protection Act (NCCP) introduced in Australia

Consumers are becoming more informed and better at assessing the quality of a used vehicle



The Impact to Victoria Motor Dealers

Written Off Legislation in NSW


68 COMMERCIAL IN CONFIDENCEValuations Solution© Veda Advantage August 2008Veda Auto – Overview © Veda Advantage 2009

Written-off vehicle reforms 2011- Changes from 31 January 2011 in NSW All NSW vehicles recorded on the Written-off Vehicle Register (WOVR) on or after 31 January 2011 will be classified as statutory (non-repairable) write-offs

This means they cannot be registered and can only be used for parts or scrap metal. The laws will apply to NSW light vehicles including trailers, caravans and motor bikes. A light vehicle is a registrable vehicle 4.5 tonnes or less gross vehicle mass (GVM)

Vehicles recorded as a repairable write-off before 31 January 2011 will continue to be so classified on the WOVR

There will be exceptions to the Legislation** Written material supplied


Written-off Laws – Impact to Victoria

Attempts may be made to move some written-off vehicles out of NSW to avoid the new statutory written-off classification in an attempt to on-sell them as repairable write-offs for higher returns than as statutory write-offs in NSW

The ban is unlikely to significantly reduce crime in NSW while criminal networks could steal vehicles in NSW and launder them elsewhere

NSW vehicles that would have been deemed repairable write-offs will pass the other states’ repairable write-off requirements, despite

appearing on the national database as statutory write-offs.

40 per cent of repairable write-offs presenting for registration do so other than the state they were written off in*

*Statistics from NMVTRC


Written-off Laws: Victoria Motor Car Trader Obligations for Used Cars As of 1 May 2002, Vic Roads has a register of written-off vehicles to prevent re-registration of unsafe vehicles and illegal "rebirthing" of cars

If it is registered as a "repairable write-off", it can be re-registered if sufficient work is done to repair it

A "statutory write-off" cannot be re-registered. (See: ss.16A–16F RSA (Road Safety Act) and regs.87–100 RSV Regulations.)

Both classes of vehicle are listed on the Written Off Vehicle Register (WOVR), however Repairable Write-Offs are removed from the register once they have been cleared by a WOVI.


How to Identify Suspect Cars Conduct a Vehicle History Check for:

vehicle registration (current, expired, suspended or cancelled)

if the vehicle has been recorded as stolen

details of if the vehicle has been written off

details of any registered security interests recorded on the vehicle



How to Identify Suspect Cars

Where to find this Information:

Individual State Road and Transport Authorities

Veda Auto



Why Veda Auto

Our Data Veda Auto is unique in its ability to aggregate multiple State

Government registers and industry data into one national database:

REVS and PPSR

Vcheck

Valuation Guide

The National Vehicle Information System (NVIS)

Federal Chamber of Automotive Industries

Veda Auto has comprehensive data on millions of vehicles in Australia



How to Identify Suspect Cars Veda can assist in the validation of VINs against:

■ Federal Chamber of Automotive Industries■ NEVDIS ■ Veda's National Vehicle Information System

Data Returned:■ Valid VIN■ Make■ Model■ Variant



Minimise Risk and Fraud 160,000+ vehicles registered on the Written-off Vehicle Register yearly.

40,000+ vehicle thefts in Australia per year

Motor Dealers need to trade the right cars at the right price to make

profitable transactions.

To satisfy legal and compliance obligations, Motor Dealers must provide

clear title – this can be difficult with State based encumbrance registers

and regulations that are changing.

Each vehicle transaction has an element of risk – it could be a repairable

write-off or have money owing on it.

It is important to have the correct information to accurately assess the

value of a vehicle.



The Veda Auto Dealer Report Australia’s most comprehensive report on the history of a used

vehicle.

By entering the VIN, the Veda Auto Dealer Report can provide: Vehicle identification and description (make, model, variant and year of manufacturer)

Registration details

REVs/PPSR Enquiry – financial encumbrance details

Written off vehicle check**

Stolen vehicle check**

Odometer check

Insurance Claim check ( as of March 2011)

First sale and use data (fleet, demonstrator, private)

Vehicle sales listings

Current market valuation

Pollution and emissions ratings

Safety Information including ANCAP Rating


** Include a Standard Vcheck Report

77 COMMERCIAL IN CONFIDENCE


PPSR ( Personal Properties Security Registry)

October 2011

■Single, national register for security interests – replaces numerous Commonwealth, State and Territory registers

■ Will be used to determine priority for secured creditors in the case of debtor default or liquidation

■ Comes into effect 10 October 2011



PPSR ( Personal Properties Security Registry)

The Benefits of Veda:

■ Entity & VIN Validation

■ No need to open / manage payment account with AGD

■ No need to maintain own B2G interface


Carhistory.com.au is our consumer research site Leverage Australia’s #1 website for used car history reports -

www.carhistory.com.au.

Carhistory offers the report of choice for Australian consumers buying

cars on portals such as carsguide, drive.com.au, ebay.com.au,

countrycars.com.au and others.

The VCN can be attached to an online car listing along with the

Veda Auto Dealer Report, providing a powerful way to build trust

between a potential customer and a vehicle seller.



Buyers already use this data Veda Auto’s Carhistory.com.au services are already integrated into

major portals allowing buyers to gain access to important data

Now dealers can make themselves aware of the same information


http://cars2.ebay.com.au/

http://www.countrycars.com.au/


What our customers say

“With Vedaauto.com we have had the benefit of immediate cost savings, require the use of only one access point which simplifies the checks, and have reduced exposure to fraud and loss of profitability. Vedaauto.com is now entrenched across all our dealerships and used for each and every trade-in or purchased used vehicle”.Tony HilligerFinancial ControllerCol Crawford Lifestyle Cars


What our customers say

“With Veda Auto we have found that we are able to easily identity adverse information, and therefore reduce our risk profile, and at the same time save money…We have now embedded these checks into our used car buying process across all our franchises.”John Vander JagtCorporate Financial ControllerSuttons Group of Companies


Questions


** Include a Standard Vcheck Report

Afternoon Tea

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Whiteboard Items

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Whiteboard Items

1. Vehicle preparation/yard staff

measurement of cleaners to retail

units

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Whiteboard Items

2. NCCP. Does anyone have a licence?

3. Feasibility of Chinese franchises

Founding member of

Whiteboard Items

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4. Does anyone use Facebook/Twitter?

Is it effective?

Whiteboard Items

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5. Scanning documents

6. Customer deposits - How are people dealing with

them?

Whiteboard Items

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7. How to keep staff motivated

8. What is considered a benchmark for internal warranties?

Questions

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Surveys Please

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Thank-youFounding member of

CAANF Conference Presentation 21-02-2011

Business

Transcript of CAANF Conference Presentation 21-02-2011