AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with...

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Transcript of AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with...

Page 1: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

AUSTRALIA’S NO.1 AUTOMOTIVE INDUSTRY JOURNAL EDITION 1026 – JUN 17, 2020

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Rogue elementAussie hopes high for strong sales, unique ‘Nissan DNA’ with

hi-tech all-new X-Trail SUV previewed by US-market Rogue

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NISSAN has revealed its crucial fourth-generation X-Trail medium SUV, which ushers in a comprehensive redesign inside and out, enhanced technology and connectivity, and likely new alternative powertrains for Australia.

Unveiled in the United States this week, where it is known as the Rogue, the all-new X-Trail is not expected to arrive in Australia until late next year or early 2022.

However, in an interview with GoAuto, Nissan Australia managing director Stephen Lester said he was excited about the prospects of the new-generation X-Trail, which he said clearly addressed the need for modernisation and would stimulate sales for what is the Japanese brand’s top-selling nameplate in this market.

Mr Lester also said he was confident the design of the new X-Trail, and all forthcoming new-generation models from the company, would maintain its

distinctive ‘Nissan-ness’ and not simply be repeated by partner brands – Mitsubishi (with Outlander, for example) and Renault (with Koleos) – under the global auto alliance’s latest corporate plan which will see them sharing not only platforms and various mechanical components but upper bodies as well.

“I think it (X-Trail) really looks exceptional and it clearly addresses some of the modernity and design features customers are looking for in that mid-sized SUV range,” Mr Lester said.

“So I’m really excited about it, I think the lines look great, it looks very masculine and sporty and we’ll be really excited when we can get it to Australia.”

Although sales of almost every SUV in this category have taken a beating this year due to the effects of the coronavirus pandemic, X-Trail remains the third-biggest-selling model in class behind the Toyota RAV4 and Mazda CX-5.

Continued next page

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Continued from previous page

Last year, X-Trail racked up 19,726 sales, down slightly on the record 21,192 posted a year earlier.

“I think nothing spurs sales and attention like brand-new product, especially when it comes in such an appealing package and in a segment that is so very strong even globally, one of the most important segments in the world, so it will fit in perfectly for us here in Australia,” Mr Lester said.

Asked how Nissan would retain its brand identity with key new models such as X-Trail under the alliance’s new ‘leader-follower’ strategy, Mr Lester also emphasised that “you can certainly see within our exterior design of vehicles, the consistency and very specific notations of design elements … that will most certainly be maintained”.

“We can also see that in some of the interior and some of the tech features and packages we’ve brought to light,” he added. “We see it in powertrains

and our views on electrification and how we’ll bring that technology through more and more vehicles.

“So those are all areas that will help us protect that Nissan DNA.”

Along with the all-new second-generation Juke that arrives in showrooms this week, the X-Trail is one of multiple Nissan models to be

updated or overhauled in the next 12 to 18 months.

Other models due for a generational changeover include the Pathfinder seven-seat large SUV and Qashqai compact SUV.

While the US Rogue was revealed with only a carryover 2.5-litre normally aspirated four-cylinder petrol engine producing 135kW/245Nm, the success of X-Trail’s main local competitors – namely the RAV4 hybrid – will spur the introduction of alternative-powertrain variants for the Australian market.

“There’s no question that some of the other brands have been successful as of late with alternative powertrains

to just ICE (internal combustion engines), and we will definitely be in that same planning space whereby we will provide alternative powertrains to simply ICE as we go forward,” Mr Lester said.

It is not yet known what shape the alternative powertrain will take

– be it a conventional self-charging hybrid, a plug-in hybrid or Nissan’s e-Power electric motor-drive hybrid – but Mr Lester said the company would go into detail about its low-emissions options in the near future.

The fourth-generation X-Trail is based on an all-new version of the

Renault-Nissan-Mitsubishi Alliance’s CMF-CD architecture, and measures 42mm shorter in length and 41mm lower in height, while standing 19mm wider with an identical wheelbase length.

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By CALLUM HUNTER

LEXUS has torn the covers off its fourth-generation IS mid-sized sedan, a model the Japanese luxury brand says debuts a number of state-of-the-art technologies, improved dynamics and dramatic styling.

The aggressive new design is immediately apparent, with the premium rear-wheel-drive sedan sitting lower and wider than its predecessor and featuring pumped-up and reinterpreted signature styling cues.

At the front there is a fresh take on Lexus’ familiar gaping grille design, now wider and more curved as it makes it way down toward the front bumper.

Slimmer headlights add a focused, squinting expression to the entire arrangement, which is enhanced by

the broader stance courtesy of wider wheel tracks – +45mm and the front and +50mm at the rear.

From almost every angle the model is recognisably an IS, even with a more steeply curving roofline as Lexus takes its mid-sizer down the four-door coupe-style path.

The designers have made the currently subtle upsweeping side sculpting far more prominent, feeding it neatly into the flared rear wheelarches rather than tracking upwards to meet the redesigned tail-lights.

And it is here, at the rear, where the biggest styling changes have been made.

The rear diffuser/bumper is now much bigger in every aspect and the previously split tail-light arrangement has been replaced by a

new “single-blade rear combination” stretching across the boot lid, with the red brake light strip flicking up in an L-shape at either end.

The boot line is now much higher than before and features an integrated lip spoiler for added visual flair.

Not only is the new body stylish and more aggressive than before, but according to Lexus stiffer as well thanks to the wider

tracks, increased number of front side-member weld points and “optimising structures from the rear-quarter pillars to the sides of the roof, among other areas”.

The car-maker says the increased track width and extra stiffness also combine with a lower centre of gravity to boost the model’s agility, with a particular emphasis on steering response and feel.

Engineers have given the

suspension a rework, too, with the new generation featuring new swing-valve shock absorbers to enhance the ride quality.

Powertrain options include the familiar 2.0-litre four-cylinder turbocharged petrol engine, 2.5-litre petrol-electric hybrid and 3.5-litre V6, all carried over from the current series with a few unique mapping tweaks to increase responsiveness.

The 2.0-litre turbo in the IS300 now features “enhanced adaptive control”, resulting in quicker and more decisive gear selection through the carryover eight-speed automatic transmission.

FULL STORY: CLICK HERE

Dramatic new styling, improved dynamics andhigher tech headline fourth-gen IS due late 2020

Lexus IS redesign

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By TERRY MARTIN

VOLKSWAGEN and Ford have revealed that the next-generation, Australian-developed Ranger-based Amarok pick-up will be built in South Africa and launch in 2022, with the two models to be clearly differentiated by “custom designs and interfaces”.

The two auto giants announced last week that the light-commercial vehicle alliance forged 18 months ago had entered the binding contractual stage and would initially encompass three key vehicle programs – Amarok/Ranger, a compact delivery van for Ford (based on the VW Caddy) and an all-new one-tonne van for both companies (developed by Ford) – as well as electric powertrains and autonomous driving systems.

As Ford ends its mid-size pick-up truck joint venture with Mazda (BT-50) and brings Amarok into the fold for the next generation, Volkswagen Commercial Vehicles chairman of the board of management Thomas Sedran admitted last week that the Amarok would have been discontinued without the new partnership, which he added was designed for the long term.

“The collaboration with Ford is an important building block of our GRIP 2025+ strategy for the future and thus part of the transformation process that VW CV is currently going through,” he said.

“Over the coming years, the co-operation will strengthen our strong position in the area of light-commercial vehicles, especially in our core European markets.

“The partnership with Ford is designed for the long term and the contracts that have now been signed are for me the proof that we are successfully implementing our plan step by step.

“What is important for both partners is the utilisation of the same platform. At the same time we will both be able to fully deploy our strengths. Through custom designs and interfaces we will clearly

differentiate the two models.“For us as Volkswagen

Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area (Europe, the Middle East and Africa).

“Ultimately it is our customers who will benefit, as without the co-operation we would not have developed a new Amarok.”

Ford’s Melbourne-based Asia-Pacific Product Development Centre is developing the new-generation Ranger that was confirmed last week as entering production before the Amarok, which means it could be on sale in Australia late next year or early 2022.

Ranger is currently built for the Australian market in Thailand at two plants in the Rayong district: Ford Thailand Manufacturing (FTM), and the Auto Alliance Thailand (AAT) joint venture with Mazda.

Ford has confirmed to GoAuto that the next-generation Ranger and derivatives will continue to be built across both the FTM and AAT facilities, while Mazda has committed to at least continuing passenger car and SUV production at AAT as it partners with Isuzu (D-Max) for the sourcing of the next BT-50.

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By CALLUM HUNTER

MERCEDES-BENZ Australia/Pacific has managed to secure 15 examples of the strictly limited – and previously thought to be off-limits – Mercedes-AMG GT R Pro coupe, setting its price at a hefty $453,200 plus on-road costs ahead of first deliveries in September.

Just 750 units of the most hardcore and focused version of the GT to date are being built worldwide, and as GoAuto reported in October last year at the updated series’ launch, the Australian operation had said the

GT R Pro would not be available to this market after apparently selling out following its debut at the Los Angeles motor show in late 2018.

Eight months further down the track and a select few Mercedes-AMG enthusiasts now have the opportunity to own the sought-after track-focused super-sportscar, which carries a hefty $84,500 price premium over the ‘regular’ GT R (from $368,700) but adds a wealth of go-even-faster gadgetry and upgrades to extract every ounce of extra performance possible while still being useable on the road.

The GT flagship can also lap the legendary Nurburgring Nordschleife circuit in 7:04.60 minutes – some six seconds faster than the already savage GT R.

Despite the extra outlay, the

GT R Pro does not boast any extra firepower under the bonnet compared to its donor car – the 4.0-litre biturbo V8 produces the same 430kW/700Nm – meaning the additional performance comes courtesy of aerodynamic and under-skin modifications.

According to AMG, one of the biggest improvements was made in the suspension, which now features fully adjustable spring pre-load length and fully adjustable

compression and rebound settings for the dampers.

In an added bonus given the model’s track focus, all of these adjustments can be made without tools.

The front (carbon-fibre) and rear (hollow-steel) torsion bars are also adjustable, while a carbon-fibre ‘shear panel’ adds rigidity to the rear of the coupe, further improving handling.

The GT R’s electronically controlled dynamic engine and transmission mounts have been retuned in the Pro

to enhance driver feel and feedback, while the standard-fit Track Package adds a steel rollcage and two rear braces for even more stiffness.

Among the aerodynamic highlights, the front apron has been tweaked and fitted with carbon-fibre flics and a more aggressive front splitter, matched at the rear by a carbon wing and carbon-fibre aero elements stemming from the rear diffuser.

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GT R Pro nod

Mercedes confirms $453K track-honed GT R Pro special edition will be coming to Australia after all

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By CALLUM HUNTER

JUST weeks after revealing its redesigned 992-series 911 Targa, Porsche has uncovered a new limited-edition version of the niche model, the $395,300 911 Targa 4S Heritage Design Edition, ahead of its Australian launch in the fourth quarter.

Limited to just 992 examples – in keeping with the model code – the Heritage Design Edition 911 Targa has been created as a nod to the 1950s, ’60s, ’70s and ’80s and is reportedly the first of four vehicles produced as part of a Heritage Design strategy.

Based on the higher-spec 4S, the special edition has been adorned in ‘historical’ decals while the interior has been treated to an equally retro makeover.

On the outside, the decals echo those of the recently auctioned 991-series 911 Speedster and include white ‘Porsche’ branding along the doors below a classic white number circle and motorsport-inspired highlights along the front wings, tracing back from the headlights.

Four colours are available, while gold badging helps to add a more bespoke look and complement the

colour scheme.Other subtle exterior touches

include the rear Porsche Heritage badge and classic 1963 Porsche Crest on the bonnet and centres of the 20/21-inch Carrera Exclusive Design wheels. Classically painted black brake callipers are also noted.

Inside, the 1963 logo also adorns the steering wheel, key fob, head restraint and key pouch, while the exclusive Bordeaux and OLEA Club leather interior is available in

two colour schemes – red and beige or black and beige.

In an extra throwback to the ’50s, corduroy can be found on the door trim and seats as a nod to the classic Porsche 356, “reviving the zeitgeist and fashion of the ’50s”.

Other unique details include the green dials and dash-mounted lap timer while a metal badge on the dash “visualises the individual limited-edition number” and adds an extra layer of exclusivity.

Porsche AG executive board chairman Oliver Blume said the Heritage Design Edition cars are about “evoking memories of the ’50s, ’60s, ’70s and ’80s in customers and fans alike”.

“No brand can translate these elements into the modern day as well as Porsche. In this way, we are fulfilling the wishes of our customers,” he said.

FULL STORY: CLICK HERE

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Porsche uncovers first model in Heritage Designproduct line – a special $395,300 911 Targa 4S

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By CALLUM HUNTER

MOTORCLASSICA, Australia’s biggest and most prestigious classic car show, has been cancelled for 2020 amid health concerns relating to the ongoing COVID-19 crisis.

In a statement, event organisers apologised for the cancellation and promised that the event would return in 2021 to provide show-goers with an “even greater spectacle”.

“In our best efforts to safely bring the motoring community together this year, we explored a range of options,” the statement read.

“After monitoring the ever-evolving situation, there are many uncertainties still in place that impact our ability to deliver the experience that you have come to expect and deserve.

“We are focusing on curating

new and exciting features for Motorclassica 2021 along with an impressive line-up of celebration marques, so stay tuned for when we reveal these in the coming months.”

Last year more than 21,000 classic car fans flocked to the Royal Exhibition Building and Carlton Gardens in Melbourne to pore over hundreds of classic cars as well as a few modern icons.

The event has become not only a magnet for enthusiasts but car companies that see the advantage of tapping into such a rich vein of automotive appreciation, with Citroen and Mini among the brands last year to celebrate anniversaries by staging special events and new model introductions around the show.

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By BYRON MATHIOUDAKIS

VOLKSWAGEN has released what is arguably the most important new model for the German brand since the factory took control of Australian importation nearly 20 years ago, the T-Cross.

A long time in the making, the light-sized C1-series was first previewed as the T-Cross Breeze convertible concept at the Geneva motor show back in 2016 and stands as the smallest SUV to ever wear the ‘VW’ roundel.

It is also the cheapest at $27,990 plus on-road costs in entry-level 85TSI Life guise.

The model’s mission is to mount a strong challenge against a large stack of similarly-sized new and

established crossovers, including the proven Mazda CX-3 and the recently launched CX-30, the Hyundai Venue and Kona, Kia Seltos, Mitsubishi ASX, Renault Captur, Peugeot 2008 and the soon-to-be-launched redesigned Nissan Juke.

Also coming this year is the all-new Toyota Yaris Cross, Skoda

Kamiq, Ford Puma and Kia Stonic.This list alone indicates the

significance of the burgeoning category and an extraordinary level of competitiveness Volkswagen encounters with the T-Cross as it looks to make an impact in the Australian market.

As if to visually manifest the burden of expectation bestowed upon it, the T-Cross is playing

it cautiously from a design and packaging viewpoint, brandishing crisp and contemporary – if also sober and upright – styling that clearly prioritises practicality.

There is no CX-30 svelteness for Wolfsburg’s hopeful crossover, but this is no bad thing, benefiting entry and egress along with all-round vision and cabin airiness, aided by the inevitable high seating position, deep windows

and a tall, squared-off silhouette.The base 85TSI Life is a living

monument to cleanly stark Teutonic interior execution, brandishing plastic materials and textures (not all of them soft and none are flocked) finished in shades of monochromatic grey, yet solidly put together too.

Sensible switchgear placement, big air vents, huge storage, beautifully analogue instrument

dials, firmly supportive seating and a flawless driving position are further drawcards, while a large touchscreen, reversing camera, wireless smartphone charging, Apple CarPlay/Android Auto connectivity, leather-clad steering wheel, auto headlights/wipers and a front centre armrest underline a decent level of specification on offer.

Continued next page

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Continued from previous page

However, while autonomous emergency braking and lane-keep assist are also standard, you’ll need to spend another $1200 for a ‘Driver Assistance Package’ that nets the desirable blind-spot monitor and rear cross-traffic alert in the 85TSI Life, and which also brings with it adaptive cruise control, ‘proactive occupant protection’ pre-impact injury mitigation technology and power-folding mirrors.

These, along with auto high-beam LED headlights, climate-control air-conditioning, keyless entry/start, steering-mounted transmission paddle shifters, self-parking tech, sports front seats, glitzier trim and larger 17-inch alloys (up from 16”), denote the 85TSI Style, for a $4000 premium.

Other key options include the $1900 ‘Sound and Vision’ package that brings digital multi-configurable instruments, sat-nav and premium

audio, and the $2500 ‘R-Line’ pack that includes sportier trim, darker tint, premium steering wheel with extra functionality, racier upholstery and 18-inch alloys. More model grades are in the pipeline.

Where even the cheapest T-Cross might win over admirers is in its rear-seat packaging, since the bench slides several centimetres forward to boost cargo capacity from an already-competitive 385 litres to a handy 455L. Folding the 60/40 backrests boost that to 1281L.

Positioning the rear seats forward does comes to the detriment of rear legroom, while the back seat also lacks overhead hand grips, cupholders and a centre armrest. We note the inclusion of two USB ports, while the spare wheel in the luggage compartment is a space-saver only.

Based the on MQB-A0 architecture that also underpins the latest Volkswagen Polo and Audi A1

superminis, the T-Cross is built in Spain alongside its imminent Skoda Kamiq and not-for-Australia Seat Arona fraternal twins for our market, and all share the Volkswagen Group staple MacPherson strut-style front suspension and torsion beam rear axle. No all-wheel-drive system is offered.

Also familiar to brand fans is the 1.0-litre three-cylinder direct-injection turbo-petrol engine, driving the front wheels via a seven-

speed dual-clutch transmission (DCT). No manual is available, disappointingly.

As the 85TSI badge suggests, the engine delivers 85kW of power as well as 200Nm of torque, offering 0-100km/h acceleration in a claimed 10.2 seconds. Running on the required 95 RON premium unleaded, the official combined-cycle fuel consumption and CO2 emissions figures are 5.4 litres

per 100km and 123 grams per kilometre respectively.

So far, so good, and typical of many modern Volkswagen and Audi models, though the T-Cross is a bit of a mixed bag in a couple of not-too-surprising ways.

For starters, while moderate throttle and gentle everyday driving reveal a spirited and punchy performer with a sporty exhaust gargle to accompany the smooth and swift torrent of speed on offer, stomping on the throttle for an instant getaway is only met with a yawning delay followed by tardy and jerky off-the-line acceleration.

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By CALLUM HUNTER

FIAT Chrysler Automobiles (FCA) Australia has reworked its Jeep Compass range for 2020, dropping four variants from the previously six-strong line-up and adding two new ones including the Night Eagle that now kicks things off from $36,950 plus on-road costs.

This new entry price is $6200 north of the outgoing Sport automatic, a difference that blows out to $8100 compared to the outgoing six-speed manual, which will no longer be available.

While the range may have been trimmed back to four offerings, all feature updated creature comforts and safety technology compared to their respective predecessors as well

as a few subtle styling tweaks.The Night Eagle’s replacement

of the Sport brings the small SUV into line with the bigger Grand Cherokee range.

Power in the Night Eagle – and the majority of the range – comes courtesy of the carryover 2.4-litre four-cylinder petrol engine, driving the front wheels via a

six-speed automatic transmission.As before, peak power and torque

is rated at 129kW and 230Nm respectively, with the entry-level model being the only front-wheel-drive variant in the range.

Standard equipment includes a new 8.4-inch ‘Uconnect’ touchscreen infotainment system with Apple CarPlay, Android Auto and

satellite navigation, cloth and vinyl upholstery, six-speaker audio system with digital radio, dual-zone climate control, tinted privacy glass, LED ambient lighting, electric park brake, leather-wrapped steering wheel, 18-inch alloy wheels and roof rails.

Jeep has also given the Compass range a comprehensive boost in standard safety equipment which now includes seven airbags, ParkView reversing camera,

ParkSense rear park-assist system and blind-spot monitoring with rear cross-path detection.

Sitting above the new Night Eagle in the range is the $42,950 Limited (+$1700) which has been relieved of its diesel engine to now be a petrol-only affair, this time driving all four wheels via a ZF-sourced nine-speed automatic transmission.

Compared to its entry-level counterpart, the Limited adds the Jeep

Selec-Terrain Traction Management System, bi-Xenon headlamps, LED tail-lights, leather upholstery, heated front seats, eight-way power- adjustable driver’s position, nine-speaker sound system, coloured 7.0-inch digital instrument cluster, ParkSense front and rear parking sensors, parallel and perpendicular park assist, push-button start, keyless entry, adaptive cruise control with stop and go, automatic high beam and power tailgate.

Above the Limited sits the S-Limited, the other new addition to the range that is priced from $45,950 plus on-roads.

FULL STORY: CLICK HERE

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Page 11: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

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Page 12: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

EDITION 1026 - JUN 17, 2020GoAutoNews

PAGE 12 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By CALLUM HUNTER

FORD Australia has announced an extensive update for its Focus small car and in the process has slashed the local line-up from six model grades down to just three, leaving the recreationally aimed Active, sports-oriented ST-Line and hi-po ST flagship.

The changes will come into effect when the updated Active and ST-Line five-door variants touch down here in December, both priced from $30,990 plus on-road costs and brandishing several key “equipment upgrades and specification improvements”.

This raises the entry point to the Focus range from the current $23,490

Ambiente hatch, which is now on the way out, and also deletes the Trend hatch that starts at $26,490.

The current Focus Active is priced from $30,490 – meaning a $500 increase applies with the update – while the ST-Line is currently only available with a wagon body style (from $31,490), which now switches to the hatch.

The Titanium hatch, set at $34,990 plus on-roads, is also now driving out of showrooms and will not be replaced.

The headline act with the forthcoming update is the addition of the FordPass Connect embedded modem for drastically increased compatibility and a bigger range of features, most of which can be accessed via the FordPass smartphone app.

FULL STORY: CLICK HERE

Focus narrows

Ford Australia reduces Focus line-up to just three variants with major update due December

PRICING:Active (a) $30,990ST-Line (a) $30,990ST $44,690ST (a) $44,690

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Page 13: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

EDITION 1026 - JUN 17, 2020GoAutoNews

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By CALLUM HUNTER

KIA Motors Australia (KMAu) has announced a mid-life update for its popular Picanto micro car, with the entire line-up set to be treated to some ‘category first’ technology upgrades and a subtle facelift coming for the higher-tier GT-Line and GT variants.

Due to arrive in late July, the Picanto overhaul sees all variants score a new 8.0-inch touchscreen infotainment system, 4.2-inch colour ‘supervision cluster’, wireless Apple CarPlay/Android Auto compatibility and Bluetooth – all billed as segment firsts.

Other specification upgrades include new headlights across the range, with the entry-level S set to score MFR halogen units while the GT-Line and GT step things up with

projection halogens.The GT-Line and flagship GT have

also been treated to styling tweaks to further differentiate them from the regular models, including new 16-inch alloy wheels and more aggressive-looking front and rear ends.

Below the trademark tiger-nose grille is a redesigned air intake, complemented at the rear by a new wider-looking bumper and dual exhaust tips which KMAu says provide a “more aggressive posture”.

All non-GT variants continue with the familiar 62kW/122Nm 1.2-litre four-cylinder petrol engine, paired with either a five-speed manual transmission or four-speed automatic and driving the front wheels only.

FULL STORY: CLICK HERE

Picanto boost

Class-leading cabin technology headlines changes coming soon for Kia’s top-selling micro car

By CALLUM HUNTER

THE local launch of Kia’s highly anticipated fourth-generation Sorento large SUV has been pushed back several months as Kia Motors Australia (KMAu) and the broader automotive industry begin to recover from the crippling effects of the coronavirus pandemic.

Originally slated to touch down this month, the seven-seat SUV’s Australian launch is now expected to be held late in the third quarter of this year, a delay KMAu media and corporate communications general manager Kevin Hepworth attributed to the COVID-19 fallout.

“The arrival timing for the new Sorento is simply a result of the confluence of a number of factors brought on by the global pandemic and the effects this has had on manufacturing and shipping,” he said.

If all goes according to plan, Mr

Hepworth said he did not expect there to be any supply issues but did acknowledge “it is impossible to predict the future”.

A solid supply bank of the new Sorento will be important for KMAu, with Mr Hepworth also revealing that excitement and interest was building at an exponential rate.

“Interest in the new car has been at record levels and continues to grow,” he said.

When it arrives in showrooms, the new Sorento will be offered with the same engine choices as the current model: a 206kW/336Nm 3.5-litre V6 petrol and a 147kW/441Nm

2.2-litre turbo-diesel unit.Both powerplants will be paired

to an eight-speed automatic transmission, with power sent to the front wheels in the V6 variants and all four wheels in the diesels.

Underpinned by Kia’s new N3 platform, the new Sorento is 10mm longer, 10mm wider and 5mm taller than its predecessor and rides on a 35mm-longer wheelbase.

Cargo volume with the third-row seats in place is said to be up by 32 per cent, with 821L available when folded flat.

The headline upgrades for the new model include a drastically reworked interior, completely new styling and bundles of new technology including a 12.3-inch digital instrument cluster and 10.25-inch touchscreen infotainment system.

FULL STORY: CLICK HERE

COVID-19 FORCES KIA TO DELAY NEW SORENTO AS INTEREST AT RECORD LEVELS

GT-Line

Page 14: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

W E A R E S E E K I N G E X P E R I E N C E D S T A F F T O J O I N O U R T E A M

NEW VEHICLE SALES MANAGERBUSINESS/FINANCE MANAGER

Bartons are a family-owned automotive dealership with locations at Wynnum and Capalaba.

Our represented brands include Holden, Hyundai, Subaru, Nissan, and Mitsubishi.

Combined with used cars we delivered over five hundred cars in May.

During COVID-19 we have not stood-down staff and have remained fully open for business. Our positive mindset is to deliver strong results across both sites.

We are seeking an experienced sales manager or would consider an outstanding second-in-command or senior sales consultant looking for the next step in their career.

We are also seeking an experienced business/finance manager to join our team.

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Page 15: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

EDITION 1026 - JUN 17, 2020

PAGE 15

GoAutoNewsMarket Insight

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By TERRY MARTIN

THE big end of town plays a powerful role in the automotive sector, and several premium brands and the key vehicle segments in which they operate are this year providing a significant stabilising influence as the COVID-19 pandemic cripples the overall industry.

After another tough month of trading in May, where total market sales were down 35.3 per cent, the new-vehicle market is now 23.9 per cent in arrears for the year to date and all brands are working overtime to ensure that early signs of recovery – seen through escalating website traffic, for example – translate to meaningful improvements in sales.

Among the top-selling premium brands, BMW has fallen just 6.2 per cent this year (to 9273 units) after another defiant performance in May when its sales were down just 1.9 per cent, while a resurgent Audi – amid a massive model rollout after homologation issues held it back last year – is regaining traction, down 14.7 per cent YTD (to 5202) after a relatively small 4.3 per cent

backwards step in May.Premium market leader

Mercedes-Benz Cars has fallen 20.0 per cent this year to 9927 sales, but the German auto giant’s light-commercial vehicles division is only down 9.0 per cent YTD (to 2323), well under the 21.7 per cent decline for LCVs overall and showing a positive underlying strength in fleet and business purchases that bodes well for the post-coronavirus economic recovery.

As we have reported, Ateco Group’s locally converted Ram pick-up truck business is flying thanks to the introduction of the 1500 model, with the high-end US brand pushing up 42.3 per cent last month to be 31.3 per cent in front for the year to date on 1123 sales.

The latest figures also show that Hyundai’s fledgling Genesis luxury brand is up 13.5 per cent this year – albeit based on a two-model range attracting only 42 new registrations in 2020 thus far – while various other more established marques have so far managed to limit the damage to

less than 20 per cent for YTD declines.

Of these, Porsche is down only 7.0 per cent for the year to date with 1708 sales, and Ferrari has slipped just 2.9 per cent with 100 deliveries already made to the end of May – a

mere three fewer than at the same point a year ago.

A deep-dive into individual market categories shows that several key premium model segments are in positive territory when the overall class has stumbled

badly, while in other areas where there is simply no hiding from the downturns, the prestige players are generally faring much better than their mainstream counterparts.

FULL STORY: CLICK HERE

Key prestige brands and segments provide astabilising influence on COVID-ravaged market

Premium marks

GoAuto Market Insight brought to you by Op2ma 40

20

0

% -20

-40

-60

-80Light cars

>$25KSmall cars

>$40KMedium cars

>$60KLarge cars

>$70KUpper-

large cars >$100K

MPVs >$60K

Sports <$80K

Sports >$80K

Sports >$200K

Small SUVs >$40K

Medium SUVs

>$60K

Large SUVs >$70K

Upper-large SUVs

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YTD Overall class

Premium market segment performance in Australia this year

Source: VFACTS

Page 16: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

EDITION 1026 - JUN 17, 2020

PAGE 16

GoAutoNewsGreen

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GoAuto Green brought to you by Titan DMS

By TERRY MARTIN

A NEW Australian-owned start-up, H2X, has announced ambitious plans to develop and produce a range of hydrogen fuel-cell electric vehicles (FCEVs) locally by mid-decade including passenger cars, SUVs and commercial and agricultural vehicles.

Launched last week, H2X has offices in Sydney, Indianapolis, Kuala Lumpur and Barcelona and will base its production facilities in Port Kembla, near Wollongong in New South Wales.

CEO Brendan Norman, a former BMW and Volkswagen Group executive, said in a statement that the company was focused on reaching “market-leading volumes by 2025” and that the product portfolio will

include “locally designed and built heavy and industrial vehicles as well as a range of passenger cars”.

These include the Snowy SUV, a HiAce-size van (shown in MPV, taxi and delivery van format) and a tractor, while a pick-up truck is also in the pipeline.

The FCEV powertrain is said to be based around a hybrid that leverages kinetic energy through battery and ultra-capacitor technology “with a strong focus on hydrogen”. The powertrain will be sourced from a still-to-be-confirmed supplier in Asia, while the chassis will likewise be derived from a third party overseas.

Mr Norman said that “from the start, locally manufactured bodies and interior parts will be fitted, with

priority on supply localisation the mission of the company”.

The aim is for a minimum 80 per cent local content by the end of its current five-year plan.

Preliminary specifications show the front-wheel-drive Snowy offers a maximum power output of 190kW, can accelerate from 0-100km/h in a claimed 6.9 seconds and can travel for 650km between refills. It rests on a 2300mm wheelbase and measures 4400mm long, 1900mm wide and 1300mm high.

Driver-assist systems will include adaptive cruise control, predictive forward braking and lane-change assist, and up to eight airbags will be fitted.

Principal investors are the Elvin Group and Denzo, and based on “positive reactions from a number of industrial partners with a strong interest in vehicle purchases, the company is confident of being in a world-leading position in the hydrogen energy field by 2024 when a full product line-up is realised”.

H2X also said it “will come to market shortly” with other applications covering rail, marine, stationary power and heavy vehicle sectors.

“Today we launch our company which not only demonstrates the advanced technology and engineering capabilities of Australia in the clean energy arena but also provides a real clean alternative

in terms of transportation,” Mr Norman said.

“With the development of many green energy projects in Australia at the moment, we have a unique opportunity to bring a significant manufacturing operation back to the country.”

Other members of the team include chief design officer and head of Europe Chris Reitz (ex-VW/Audi, Nissan, Fiat), chief marketing officer and head of Americas Alan Marder (ex-Toyota), chief powertrain officer Peter Zienau (ex-GM, Saab) and chief technology officer Ian Thompson (ex-Lotus, Aston, Volvo Trucks).

FULL STORY: CLICK HERE

Aussie start-up targets ‘world-leading’ positionwith all-new hydrogen-powered model range

H2X aims high

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Page 17: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

EDITION 1026 - JUN 17, 2020

PAGE 17

GoAutoNewsPersonnel

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By TERRY MARTIN

SENIOR global Infiniti executive and expat Australian Chris Mallios is preparing to return Down Under at the conclusion of the luxury brand’s relocation from Hong Kong to parent Nissan’s global headquarters in Japan.

The shift in operations, which was announced last year, is expected to be wrapped up next month – pending the lifting of COVID-19 travel restrictions into Japan – and Mr Mallios is now looking to return to Australia with his family rather than relocate to Yokohama.

He told GoAuto that personal family requirements meant that his preference was to return to Australia after four years abroad rather than move to Japan, and as a result he had decided to leave the Renault-Nissan-Mitsubishi Alliance.

“I still think there are good opportunities in Australia as due to COVID-19 organisations are needing to reshape their business models to consumer needs,” he said.

“Digital transformation is key and there is still significant work to be done to get that holistic approach right from the customer experience, supply chains and back

office support functions all working seamlessly to address customers’ needs, like what is being done here in China successfully.”

Mr Mallios has served as a director and executive committee member of Infiniti’s global operations since October 2018, “leading the alignment between Nissan Motor Corporation and Infiniti

on all operational-related topics to ensure functions support to drive global markets revenue and profit performance”.

He had previously spent about 15 months as managing director of Infiniti’s Asia and Oceania region, reporting directly to then president Christian Meunier (now global president of FCA’s Jeep brand) and overseeing the operations across a broad range of markets including Australia and New Zealand.

Mr Mallios said he also worked closely with Nissan’s then chief performance officer Jose Munoz, who last year switched to Hyundai Motor Company as its global COO.

The regional role came after about a year as director of Nissan’s Infiniti Task Force in Beijing.

FULL STORY: CLICK HERE

GLOBAL INFINITI EXECUTIVE PLANS AUSSIE RETURN

Chris Mallios

By JOHN MELLOR

PROMINENT Holden dealer Richard Ireland has been awarded the Order of Australia in the latest Queen’s Birthday honours for his service to the motor industry and to the community of Cairns in North Queensland.

He is the third generation of the Ireland family to be honoured by the Queen.

Mr Ireland, in his role with the Australian Holden Dealer Council, finds himself in the thick of the negotiations with GM Holden over compensation packages offered to Holden dealers as GM moves to close the brand down in Australia.

Mr Ireland is co-managing director with his brother David of the family-owned FR Ireland Pty Ltd.

He is dealer principal of Ireland Holden, HSV, Mitsubishi and Isuzu

Truck franchises.He has played leading roles

in industry associations and is currently a director of the Australian Automobile Dealers Association Queensland, a role he also performed from 1994 to 1996.

He was a director of the Motor Trades Association Queensland from 1990 to 1991 and has served on state and national dealer committees for Holden, Mitsubishi and Isuzu Truck.

Mr Ireland’s father Ron was also awarded the OAM, in 1997, as well as the Centenary Medal in 2001. His grandfather Francis Ireland was awarded the MBE in 1987; all for services to the community and to the motor industry.

Apart from his role in the motor industry, Richard Ireland has followed his father and grandfather

into extensive involvement in the Cairns community.

He has been a member of the Rotary Club of Cairns for more than 30 years and is a Paul Harris Fellow – Rotary’s highest honour – as were his father and grandfather. He was president from 1999-2000 and also served as secretary.

He is currently president of the Far North Queensland Youth Assistance Fund, which helps disadvantaged youth. He has been a member of the fund since 1987 and a management committee member since 1995.

Mr Ireland said the fund “helps a lot of people who are trying to get to university, advance in their sport or pursue their arts careers and they can’t quite get there”.

“So we give them a bit of a lift across the line,” he said.

FULL STORY: CLICK HERE

RICHARD IRELAND RECEIVES OAM FOR INDUSTRY, COMMUNITY SERVICE

Richard Ireland

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Page 18: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

EDITION 1026 - JUN 17, 2020

PAGE 18

GoAutoNewsDiary

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GoAuto New Car Diary brought to you by Autotrader

By CALLUM HUNTER

TOYOTA Australia has unveiled a mid-life update for its HiLux-based Fortuner SUV, with the large seven-seater now packing more punch, improved fuel economy, greater towing capacity and extra technology.

Due for release late August, the new Fortuner maintains its basic body shape, including its signature high-hipped window line, but has

been given an entirely new face, one that Toyota says better reflects its role “as a comfortable urban transporter and a rugged off-road explorer”.

Gone is the rounded and somewhat fussy-looking nose, replaced by a more aggressive dual intake design with a narrow radiator grille and gaping lower intake not dissimilar to the one found on the Camry SX.

Just like the HiLux on which

it is based, the Fortuner has been treated to a hefty power increase courtesy of “new and revised engine components” for its 2.8-litre four-cylinder turbo-diesel with peak power and torque now rated at 150kW and 500Nm respectively (+20kW/50Nm).

Revisions and improvements to the cooling system in conjunction with the new engine components have also resulted in considerably lower fuel consumption, with Toyota claiming an improvement of up to 17 per cent on the urban cycle.

A flow-on effect of the extra pulling power is a marked increase in braked towing capacity, up 300kg to 3100kg.

Apart from the changes under the bonnet, the Fortuner has also been treated to a few enhancements in its cabin including a new 8.0-inch infotainment touchscreen (up from 7.0 inches) with Apple CarPlay and Android Auto compatibility as well as enhanced voice recognition.

Satellite navigation and digital radio also come as standard on the GXL and Crusader, remaining

optional on the entry-level GX.Toyota Australia vice-president

of sales and marketing Sean Hanley said the changes to Fortuner build on the premium quality expected in an off-road-capable SUV.

“Customers will appreciate the extra performance from the high-torque engine, coupled with impressive fuel economy, smoothness and quietness – whether they’re on the school run or heading into the great outdoors,” he said.

FULL STORY: CLICK HERE

Engine upgrade, extra tech and more style forToyota’s HiLux-based SUV due here in August

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Page 19: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

THE BUSINESS PAGES OF GOAUTONEWS

EDITION 1026 - JUN 17, 2020 SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

COMMENT by JOHN MELLOR

THE chief of GM Holden, acting managing director Kristian Aquilina, in taking to the airwaves on the ABC to put Holden’s side of the dispute with dealers, has inadvertently revealed the company’s failure to successfully manage the franchise on behalf of its dealers.

Mr Aquilina was attempting to explain why GM thought the offer of $1500 compensation per car to Australian Holden dealers was fair.

He told the national broadcaster that Holden dealers were losing an average of $600 for each car sold in 2019. The inference was that dealers were lucky to be offered $1500 a car in compensation.

But in disclosing the $600 loss per car, Mr Aquilina showed the extent to which Holden had failed its franchisees – the dealers.

Dealers, by their very nature, are profit focused. They don’t sell cars for practice. They have massive investments in facilities, and in people, resulting in eye-watering overheads.

If they are, on average, losing $600 per car sold across 185 dealerships for a year then something is seriously wrong with the way the franchisor is running the brand. That many of arguably the best car retailers in Australia simply could not be getting it that wrong.

But it is worse than $600 a car and more likely to be thousands of dollars a car per 185 dealers per year because GoAutoNews Premium understands the $600 loss takes into account any profit associated with the sale of the car including bonuses, hold-back, F&I gross and aftermarket and accessory gross.

What does this say about Holden?The dealers can only control their

own costs and, given the losses across the entire network and given that dealers by their very nature will do everything in their power to eliminate losses, then what the franchisor was serving up to them must have been basically a business model not fit for purpose.

Continued next page

KPMG: Write-off extension ‘great news’Extension is opportunity for dealers to round up tradies and other business buyers

Fuel-cell trucks on a rollNikola ute set for Australian sales in 2022 as Daimler joins Volvo to make fuel cells

GM’s ‘failure’ in Oz revealed

Chief makes astonishing admission to the ABC about GM’s poor management of Holden

[email protected]

Not just a view from the top.

Page 20: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 20EDITION 1026 - JUN 17, 2020

GoAutoNewsPremium

SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

Continued from previous page

The franchisor has the responsibility of choosing the most likely models from the brand’s portfolio, choosing the engine and driveline specification and the features most appropriate to the market, choosing the variants, choosing the price points and options and ensuring that the public have a desire to buy that brand through its history of advertising, promotions and the nurturing of owners.

The only way the dealers can have any influence on any of those factors is through consultation with Holden, usually through the dealer council, but there is nothing that says the factory had to listen.

By getting all the various elements in this matrix right, all dealers (with the occasional exception due to specific circumstances) should be able to make a profit.

The fact that arguably the best car retailers in Australia were unable to make money from the

matrix provided to them by General Motors speaks volumes about GM’s inability to run a successful car business in Australia in the best interests of its franchisees.

What is curious about this story is why were Holden dealers in New Zealand profitable when Holden dealers in Australia were not?

Holden has repeatedly said that it was offering New Zealand dealers $2500 a car compensation compared with $1500 a car for Australian dealers because New Zealand dealers were profitable and Australian dealers were not.

Here is why. It is common knowledge amongst

New Zealand dealers that they had a higher margin of about $A1000 more for fleet deals (business, government and rentals) than Australian dealers. NZ dealers also know that their normal retail margin was $A600 a car better than Australian dealers.

FULL STORY: CLICK HERE

“It is worse than $600 a car and more likely to be thousands of dollars a car per 185 dealers per year because GoAutoNews

Premium understands the $600 loss takes into account any profit associated with the sale of the car including bonuses,

hold-back, F&I gross and aftermarket and accessory gross.”

© 2020 KPMG, an Australian partnership. All rights reserved. 378288416ENT

The best strategies are built on partnershipsKPMG’s Motor Industry Services Team knows that building sales is just the start of making car dealerships great.

Are you looking for new strategies to improve after sales, network and team development, leadership or succession planning?

We’ll work with you to drive real value for your business.

To find out more, contact the KPMG Motor Industry Services Team:

[email protected]

Joel ShashouaDirector Motor Industry Services KPMG

Page 21: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 21EDITION 1026 - JUN 17, 2020

GoAutoNewsPremium

SUBSCRIBE FREE: CLICK HERE ADVERTISE: CLICK HERE

By JOHN MELLOR

and NEIL DOWLING

THE extension of the instant asset write-off until the end of the year is “great news” for car retailers but dealers need to put in place strict procedures for sales staff to make sure the dealership does not let any qualifying business buyers slip through their fingers.

This is the view of KPMG Motor Industry Services which has prepared commentary to guide dealers to make the most of the federal government’s move to stimulate vehicle sales for an additional six months.

The national lead of KPMG MIS, Steve Bragg, told GoAutoNews Premium that while many businesses would not be in a

position to take advantage of the instant write-off, dealers should be developing specific strategies to put their offerings in front of tradies and others in the construction industry.

“Dealers need to focus on the tradies and the construction industry,” he said.

“This sector has been going well since the pandemic started. They have still been working all the way through and are perfectly situated to benefit from the instant asset write-off.

“I would market to them specific ute model lines with tradie packs and bundle these packs with any special finance packages available,” Mr Bragg said.

Joel Shashoua, a director of KPMG MIS, told GoAutoNews

Premium that every member of the sales team, including in the used car department, should be briefed on how the offer works and the benefit to the buyer (without offering tax advice).

“Make sure sales teams are briefed on the offer (but don’t give tax advice) and make sure that every customer is aware of the program.

“It is really important to find out early in the sales process whether the customer owns a business. This

should become part of any initial need analysis. Are they aware of the scheme? Encourage them to seek advice on their tax position if they are eligible buyers.

“This is especially important for all commercial vehicle customers.”

Mr Shashoua said that dealers should round up as many of their customers as possible who potentially qualify for the write-off.

“They should send an electronic direct mail (EDM) to all customers

in their database advertising the program. Emphasise that supply of vehicles may tighten up prior to year end due to COVID and they should get in early to secure a vehicle.

“It is especially important to create marketing collateral highlighting the write-off placed around the dealership, and online, to notify customers of the offer,” Mr Shashoua said.

Continued next page

Extension is opportunity for dealers to round up tradies and other business buyers

KPMG: Write-off extension ‘great news’

Mitsubishi Triton

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Page 22: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 22EDITION 1026 - JUN 17, 2020

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Mr Shashoua summarised the offer this way: • The current instant asset write-

off program from the government has been extended past 30 June now until 31 December.

• The program allows eligible businesses to claim the depreciation amount in one hit rather than gradually over a multi-year period.

• The total amount to claim for cars is $57,581 – anything beyond that cannot be claimed.

• For further information beyond this the customer should seek their own tax advice.

Meanwhile, Australia’s main industry bodies say that extending the $150,000 instant asset write-off by six months (limited to $57,581 in the case of motor vehicles) will help the auto industry on its road to recovery by attracting new business.

In welcoming the extension, now pushed back to December 31, industry bodies said it was a welcome relief to the car industry that had been struck by 26 months of declining new-vehicle sales and the effects of COVID-19.

The Australian Automotive Dealer Association (AADA) said it congratulated the government and said the move would help the industry recover and encourage businesses to invest during a time when it was needed by the economy.

AADA CEO James Voortman said, however, that buyers should not lose sight of the fact that June was a great month to buy a vehicle.

“I would urge eligible businesses looking to invest in a vehicle to do so before the end of the financial year as there are some very good deals available,” he said.

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Page 23: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 23EDITION 1026 - JUN 17, 2020

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By NEIL DOWLING

THE latest national statistics confirm the damage to the automotive retail industry as 26 months of declining new-car sales and the pandemic bite into the number of vehicle loan approvals for April.

Australia’s new personal loan commitments plunged by 24.8 per cent in April but it was the finance for vehicles that took the worst of the decline with a huge 37.8 per cent collapse, the largest fall in the 18-year history of the Australian Bureau of Statistics (ABS) data series.

The results are not unexpected given the state of the new-car market, the effects on retail sales caused by COVID-19 and more stringent loan obligations brought about by ASIC.

However, the Australian Automotive Dealer Association (AADA) says that June is expected to improve as it is traditionally one of the strongest months of the car-buying year.

The downward trend in the car market compares with new loan commitments for housing in April. These were down 4.8 per cent. But business construction loans dropped even further than motor vehicle loans in April – down 39.2 per cent. The ABS said business construction loans were a “typically volatile” sector unlike the automotive industry.

ABS chief economist Bruce Hockman said: “Lending institutions reported that COVID-19 impacts were being seen through both reduced demand from borrowers

and tighter lending criteria.”The AADA said the figures reflect

the plunge in new-car sales in April and also “demonstrates the tighter credit environment for so many customers looking to purchase a car”.

AADA CEO James Voortman said the industry had experienced two of its worst months on record because of the pandemic.

“Much of that is low consumer confidence but there is also a more systemic issue with access to credit

brought on by the banking royal commission,” said Mr Voortman.

“People who would usually present no concerns to finance companies are getting denied credit to buy cars.

“We need to get credit flowing in this economy and review our responsible lending laws which have simply gone too far.

“We are hopeful that sales will pick up in June which is traditionally a strong month, but beyond that it is

critical for our industry that credit is freed up to bring customers back to the showrooms.”

New-car sales have been falling for 26 months in a row and sales figures in April and May saw some of the biggest declines on record due to the effects of the COVID-19 pandemic.

Data for the ABS was provided by the Australian Prudential Regulation Authority and lending institutions.

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Car loans hit historic low on virus, tight lending and weak market – but June looking better

Car finance plunges in April

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Page 25: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 25EDITION 1026 - JUN 17, 2020

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By NEIL DOWLING

FUEL-CELL commercial vehicle start-up Nikola, fresh from becoming a public company, has said Australia would be the second market after the US for its Badger EV ute.

In a tweet, Nikola said it would reveal a pre-production Badger 4x4 next month ahead of expected sales in the US late 2021 and Australia in 2022.

Production for the ute starts later this month and the Badger will be shown at the Nikola World 2020 event set for Phoenix, Arizona, on

June 29 where reservations for the ute will be accepted.

Development of fuel-cell passenger vehicles has slowed because of cost and an immature hydrogen infrastructure but it hasn’t deterred commercial and heavy-duty vehicle manufacturers.

Nikola, which has developed a hydrogen fuel-cell truck range, is on the path to became the primary commercial vehicle manufacturer for EV fuel cells, aided by this month becoming a publicly listed company and joining the US NASDAQ index after merging with acquisition firm VectoIQ.

VectoIQ pledged $US230 million to the merger and raised an additional $US525 million from investors while Nikola separately raised $US700 million.

Nikola’s new business format allows it to invest in production of its Nikola TRE truck in Europe next year, open a new factory in Arizona, expand its hydrogen fuelling stations and push its recent plans for the Badger ute to go into production.

Nikola has truck-maker Iveco as a major shareholder, holding 7.11 per cent of the company after investing $US250 million in late 2019.

VectolQ, which has been absorbed within the new Nikola business,

was started in March by former General Motors vice-chairman Steve Girsky. He has joined the Nikola board as an adviser.

Nikola founder Trevor Milton, who is now Arizona’s newest billionaire, holds a 42 per cent stake in the company. He relinquished his role of CEO after the merger and will become executive chairman.

Meanwhile, German commercial vehicle manufacturer Daimler Truck announced this month

that it has established a new company and is pushing forward its co-operation with Swedish truck manufacturer Volvo for the production of fuel-cell systems.

In April, Daimler and Volvo announced plans to establish a joint venture for the development, production and commercialisation of fuel-cell systems for heavy-duty commercial vehicles.

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Page 26: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 26EDITION 1026 - JUN 17, 2020

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By NEIL DOWLING

SHANNONS’ first online auction for vehicles recorded a huge 96 per cent clearance rate and saw $4.3 million of goods change hands.

The result for Shannons and sellers was better than expected with 500 new bidders registering for the event, in addition to views from most of the company’s 8000 existing members.

Shannons’ national auctions manager Christophe Boribon told GoAutoNews Premium that the event received about 3000 bids which compared favourably with the live auctions that the company held regularly in Sydney and Melbourne.

“I see online vehicle auctions as now being an integral part of our business for the future,” he said.

“I can’t see it taking over from live auctions but it will be an important alternative.”

The online auction sold 97 of the 101 lots of memorabilia, number-plates, motorcycles and cars shown.

Mr Boribon said there was great bidding activity across all items although the three project cars sold for strong prices. These were a 1936 SS Jaguar that sold for $18,500; a 1958 MGA for $27,500; and a 1955 MG TF for $40,500.

A heritage numberplate NSW 280 fetched $220,000 while two Victorian heritage plates, 736 and 474, found new owners at $113,500 and $145,500 respectively.

Muscle cars like the 1971 Chrysler Valiant VH Charger R/T fetched $99,000 while a 1972 Plymouth Barracuda 340 V8 went for $53,351 and a 1965 Chevrolet Corvette 327 350hp convertible sold for $92,000.

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Page 27: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 27EDITION 1026 - JUN 17, 2020

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By NEIL DOWLING

BMW Australia is employing a new globally certified training program and capability to repair carbon-fibre parts and electric vehicles to a standard described as better than original.

It is an expansion of its accredited national vehicle repair program that is designed to repair BMWs to a structural integrity and quality that matches or exceeds the levels achieved in the factories where the vehicles were manufactured.

The program for body and paint

repair is claimed to put BMW at the forefront of the industry with the ability to repair advanced components including carbon-fibre and “space-age” structural elements used in the construction of electric vehicles.

BMW Group Australia head of aftersales, Dr Reiner Meierbeck, said the brand and its 45 accredited national bodyshop outlets use the latest techniques for vehicle repair.

“Our aim is not to repair BMW vehicles to OEM standards, but actually repair to a much higher level so they can capably withstand another impact, ensuring superior cabin integrity for all occupants,” he said.

The training program underway by BMW in Australia is also designed to future-proof the work of repairers.

Dr Meierbeck said it provided

repairers with knowledge and education of new-generation automotive design, engineering and construction techniques and how to deal with the intricacies of repairing highly complex vehicles.

“As we transition into more mainstream adoption of electric vehicles and autonomous technologies, we are seeing an increased requirement for chassis and bodies to balance strength, weight, flex and rigidity,” he said.

“BMW vehicles now include increased levels of high-strength steel, aluminium, aluminium-steel composites, carbon, plastics and thermal plastics, and we therefore need to ensure our people are educated and fully informed of every detail.

“This is where such a high quality training program plays such an important role and, when combined with our technical capability, further differentiates a BMW Bodyshop from a conventional bodyshop.”

BMW Australia said paint and panel repair professionals trained in the global program work with cutting-edge techniques in all bodyshops to provide a peerless final result.

“These include aviation-standard methodologies to ensure the vehicle performs to its highest standard and also carries a superior finish following an accident or repair work,” it said in a statement.

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Page 28: AUSTRALIAS NO1 AUTOOTIVE INDUSTR JOURNAL EDITION 1026 ... · Commercial Vehicles, our sights with the Amarok successor are on our main markets, above all in the EMEA economic area

The business pages of GoAutoNews

PAGE 28EDITION 1026 - JUN 17, 2020

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By NEIL DOWLING

CYBER attacks on connected cars have increased by 99 per cent in the past year in the UK, spelling a warning for other markets that the technology can lead to vehicle theft and even theft of personal data of the vehicle owner.

UK-based price comparison company, Uswitch, conducted a study that found there were four ways that vehicles can be compromised, ranging from weaknesses in apps and theft of personal data to keyless car theft and even taking control of a vehicle remotely.

It said that about 67 per cent of all new cars sold are currently connected in some way, but that is expected to rise to 100 per cent by 2026.

Concern was raised when UK industry journal AM Online

published an article warning that privacy could be breached easily but not only by thieves.

“Car companies themselves can now collect huge swathes of rich personal data, mainly location-based and habitual movements,” AM Online reported.

“However, this also covers connected device activity such as calls made, messages and phone numbers, which for privacy-concerned individuals is quite alarming.”

It said government regulators and the cybersecurity industry needed to ensure that connected car data is encrypted end-to-end to reduce any threat from a third party. This includes data that is stored.

Connected cars can collect up to 25GB of personal data every hour. Using a vehicle’s in-built apps can

allow for data such as your location, entertainment preferences and even financial information.

Many people also sync their phone with their car to use apps and entertainment systems as well as share contacts for hands-free calls via the in-built speakers.

Each of these connections increased the opportunity for hackers to find a vulnerability and steal data via remote access, said the article.

“Apps that communicate directly

with cars are becoming more popular and this makes them a tempting target for criminals,” it said.

“If these applications have any vulnerabilities, they can allow for unauthorised access to the owner’s personal data and even features of the car itself.”

AM Online said that Nissan had to shut down one of its apps in the UK after testing by security researchers revealed a vulnerability that could allow hackers to remotely control

the car’s heated seating, fans, air- conditioning and heated steering wheel.

“Keyless theft or key hacking is another way thieves attack the systems used to control a car,” the article said.

“It usually requires the key to be close to the car (such as on a table by the front door) and often takes place when a car is parked outside the owner’s house while they’re at home.”

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UK company urges caution on connected cars as cyber attacks on new vehicles doubles

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PAGE 29EDITION 1026 - JUN 17, 2020

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By NEIL DOWLING

A PARTNERSHIP between Uber and consumer product company Reckitt Benckiser hopes to clean up the slump in ride-share use caused by COVID-19 fears and enforced distancing rules.

A thriving ride-share industry is important for dealers as it generates increased service and parts sales.

Reckitt Benckiser (RB), makers of Dettol products, are now providing Uber Australia drivers with free hygiene kits made from Dettol’s range to help stop the spread of germs.

It is an additional investment from Uber to help ensure that drivers who use the Uber app can equip their vehicles with hand sanitisers and disinfectants at no cost.

These free kits make up part of

Uber’s $50 million global commitment to help provide equipment for clean and hygienic rides.

This makes Uber the only ride-share platform in Australia to help make disinfectants and sanitisers available for every trip.

The offer of the kits of Dettol hand sanitiser and disinfectant wipes extends to delivery partners who use the Uber Eats app.

Uber Australia general manager Dom Taylor said his company wanted to “help people move with confidence”.

“We’re thrilled to work with RB to ensure our partners have access to the sanitising products they need, at no cost to them,” he said.

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