Ignition Magazine Australia | February 2023

Classic/Future Ride: LAND ROVER

SURVIVING THE SPARE PARTS SHORTAGE

Top tips and practical advice you can use.

HOW ELECTRIC VEHICLES WILL CHANGE YOUR BUSINESS

Five lessons from the European market.

CAPRICORN EVENTS

Connect with your industry

In 2023, we are organising many more opportunities to network with Members and Preferred Suppliers. These events support you to grow your business, network and keep up to date with industry news.

STAY TUNED!

Login to myCAP portal to check out all the upcoming events or for further information please contact our Events team.*

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events@capricorn.coop 1800 327 437

October – November 2022

FREE FUEL FOR A YEAR WINNER

Congratulations to the following winner of our Capricorn 2022 Fuel Card Promotion. CENTRAL 4WD CENTRE (VIC/TAS) has won "Free Fuel for a Year” which will be delivered as a $3,500 AmpolCash Fuel voucher.

November 2022

BBQ MEAT COLLECTION WINNERS

Congratulations also to the following winners of our Woolworths at Work November 2022 Promotion.

PETER CHRISTIE AUTOMOTIVE (NSW)

ULTI-MECH (WA)

Both Members won a BBQ Meat Collection Tray worth $200 each. Each BBQ Meat Collection Tray includes a variety of meat from Woolworths at Work.

THANK YOU VERY MUCH TO ALL MEMBERS WHO PARTICIPATED IN OUR LATEST PROMOTIONS

David Fraser Group CEO

CEO’s message

Here’s a big question for you to start the new working year with: what will your business look like in 10 years’ time? If you’ve got a business plan tucked away in a drawer or on the shelf, maybe you have a clear answer to that. Maybe it’s more staff or bigger premises or more hoists. Maybe you’re close to retirement and it’s a succession plan rather than a business plan that will guide the next decade of your business operations. Maybe you don’t have a plan at all. We know from the 2022 State of the Nation report that nearly two-thirds of Members don’t have one. (In which case, we hope this edition of Ignition might spark something for you, and you put some thought into it as a priority for 2023. It’s not too late to make it your New Year’s resolution.)

Whether you’ve got a plan or not, that 10-year time frame is one that should concentrate the minds of everyone operating a business in the automotive aftermarket in Australia or New Zealand. Why? By 2033, most carmakers will have switched to only manufacturing electric vehicles. Many, including Alfa Romeo, Lexus, Mercedes-Benz, Volvo, and BMW, have committed to producing only EVs by 2030. Nissan, Toyota, VW, GM, Honda and Hyundai all have similar commitments — promising to be all electric by somewhere between 2035 and 2050 (if economic conditions, government regulations or consumer demand don’t compel swifter change).

But it’s a safe bet that by 2033, a lot of the cars about to come out of warranty and make their aftermarket debut will be electric vehicles. In the years thereafter, we can assume the percentage of EVs rolling onto workshop aprons will only increase, and the number of internal combustion engine vehicles will proportionally decrease. Will you be ready for that transition when it comes? If not, the good news is you have the next decade to watch, learn, and plan.

Let that research and planning task start today, if you haven’t begun already. This edition of Ignition is filled with great insights and advice on the workshop of the future. We’ve got research from our team, who have been to Europe investigating EV adoption to find practical lessons for the Australian and New Zealand aftermarket.

Separately, we’ve also got great reads on a digital startup that is set to revolutionise the way people choose which car to buy, and advice from one of our parts Preferred Suppliers on surviving the spare parts shortages and price increases that have been affecting the industry.

Cover to cover, you’ll find this edition of Ignition brimming with insights and knowledge designed to help you meet the challenges not just of today, but of tomorrow. Our plan is for us all to be stronger together today, in 10 years and for many years beyond that.

Happy New Year.

CONTENTS

FEBRUARY 2023

4 DIAGNOSTIC EXPERT READY FOR AUTOCARE 2023

Brandon Steckler to feature at this leading automotive convention.

6 SURVIVING THE SPARE PARTS SHORTAGE

Top tips and practical advice you can use.

10 YOU TURN IF YOU WANT TO

The Mercedes-AMG C63 heralds a new paradigm in auto engineering.

12 CARSONA IS REDEFINING MOVEMENT

Is the way we choose cars about to change forever?

14 INTERNAL SUCCESSION PLANNING

Where do you start?

16 ARE YOU PROPERLY PROTECTED AND PREPARED?

Lessons from the 2022 QLD and NSW floods.

19 CLASSIC/FUTURE RIDE: PERENTIE EV

Retired Army classic goes electric.

22 HOW ELECTRIC VEHICLES WILL

CHANGE YOUR BUSINESS

Five lessons from the European market.

25 YOUR GUIDE

TO FORMULA

ONE IN 2023

Fans are set to enjoy another promising year.

30 MERCEDES X AVATAR

David Fraser Group CEO

Mercedes-Benz enters the next phase of its strategic brand collaboration.

or damage whatsoever connected with: i. reliance on any material in Ignition; or ii. any inaccuracy, error or omission in any material in Ignition.

U.S. diagnostic expert ready for Autocare 2023

Australia’s largest education-led automotive convention has stepped up a gear, securing renowned aftermarket diagnostic specialist Brandon Steckler.

Proudly sponsored by

Brandon’s inclusion at Autocare 2023 completes what is Australia’s most comprehensive automotive technical and management training program under one roof, led by an unrivalled group of aftermarket industry experts.

Brandon Steckler is a qualified Master Technician and a world-renowned trainer, author and speaker. As an instructor at CarQuest Technical Institute and WorldPAC Training Institute and Technical Editor for Motor Age magazine, Brandon is a perfect fit for Autocare 2023.

Brandon’s sessions will be highly sought after for service and repair professionals looking to fast-track their ability to efficiently diagnose and troubleshoot fault codes, failures and errors relating to modern vehicle functionality.

“We are delighted to have Brandon Steckler join Autocare 2023. Brandon is a highly respected technician and trainer and his expertise in diagnostics, along with his passion for education, will be a valuable addition to all in attendance at Autocare,” said Stuart Charity, CEO of the Australian Automotive Aftermarket Association.

“Brandon is one of many industry specialists chosen as the best in their fields to speak at Autocare on a range of important topics across both technical and management areas. We are pulling out all the stops to ensure Autocare is an unmissable industry event, and Brandon’s inclusion is another great reason to invest in your future at Autocare 2023.”

Taking place 9–10 June 2023 at the Brisbane Convention & Exhibition Centre (BCEC), Autocare is an intensive two-day convention where those who shape the future of the automotive aftermarket will gather to learn, network and propel their careers and businesses into the future.

The Autocare Technical Training program is aimed at technicians and apprentices to deliver advanced, comprehensive, hands-on training on the latest-generation vehicles, scan tools, software and diagnostics. Technical sessions cover hybrid and EV service and diagnosis, vehicle communication protocols, sensor and component testing, EGR systems, fuel-injection systems, exhaust emission reduction and much more.

The Management Training program will complement the Technical Training program and greatly benefit business owners and managers. Management sessions will deliver the latest information and advice on topics including right to repair, industry trends and performance insights, staff retention and recruitment, customer service, cybercrime, financial management and environmental sustainability.

To complement the training programs, a feature-packed Trade Show, demonstration stage and networking happy hour will offer an unprecedented training and networking opportunity to take your automotive career development, skills and business growth to the next level.

Don’t miss this first-class event!

To secure your tickets to Autocare visit autocare.org.au

After graduating top of his class at GM’s automotive Service Educational program, Brandon worked as a dealership technician, obtaining Master Technician status. Brandon later moved into the independent service world, following his passion for understanding vehicle system functionality and deciphering errors and failures and gaining a reputation for his expertise.

Brandon is now an instructor with CarQuest Technical Institute and WorldPAC Training Institute and beta tester for Automotive Test Solutions. Brandon is passionate about sharing his knowledge to the industry, and develops education programs, and provides phone and live technical support and private training across the world.

Brandon holds ASE certifications A1A9 as well as C1 (Service Consultant). He is certified as an Advanced Level Specialist in L1 (Adv. Engine Performance), L2 (Advanced Diesel Engine Performance) and L3 (Hybrid/ EV Specialist).

Brandon Steckler

Brandon Steckler Bio

TOP TIPS

to survive spare parts shortages

Are you struggling to get spare parts when you need them? When you do manage to find them, do they cost more than you expected?

In the nearly three years since the pandemic first began disrupting automotive manufacturing and its supply chains, it has become a common experience for many businesses operating in the automotive aftermarket, not just in Australia but around the world.

When Capricorn asked Members to list the biggest challenges they face in running an auto business, in our most recent State of the Nation survey, shortages of parts was the fourth most common answer, with more than three in 10 respondents saying it was a major issue. It’s a growing concern, with 38 per cent of Members saying they were worried about the impact of parts shortages on the industry in 2022, compared to 28 per cent in the same survey 12 months earlier. For the first time, the survey also asked about increased prices for spare parts. It debuted in the top 10 of the challenges Members said they face, coming in in sixth place, with 27 per cent.

The global automotive industry has been caught in a perfect storm the past few years and the Australian and New Zealand aftermarket is really being buffeted along with it. When Covid-19 hit in early 2020, almost all car manufacturers and the suppliers that manufacture parts for them were affected. Some car and parts factories shut down. Others switched to making medical supplies. The supply chain began to creak. The now-infamous global shortage of semiconductors saw production stall and waiting lists for new vehicles blow out, often to more than a year. Soon, everything from seating foam to plastics to glass was in short supply. Automakers were already struggling with shortages of wiring and wiring harnesses when Russia’s war in Ukraine crippled the supply of electrical wiring and other products, and took many of Ukraine’s almost 40 car parts factories out of production.

In recent months, as automotive factories elsewhere in the world got back up to something near the level of pre-pandemic production, the supply chain that gets spare parts into the workshops of Capricorn Members across Australia and New Zealand was hit again. A shortage of the shipping containers used to transport parts, a massive hike in fuel costs, and the value of the Australian dollar have all made shipping costs more expensive. There are long delays in shipping parts, especially from Europe.

We asked Capricorn Member and Preferred Supplier Roy Clarke, General Manager of Perth-based Japanese Truck and Bus Spares, for his assessment of the current situation with spare parts, and for his advice to Members on how best to handle shortages.

“Certainly, some product is hard to come by,” he said. “For us, we’re a totally independent business, so we’ve got quite a bit of flexibility in how we go about supporting our customers and supplying parts. We’re a bit of a procurement business as well, I suppose; it’s not always supplying a part from straight off the shelf for us.

“But stock in general has been very slow coming in from overseas for the last 18 months to two years. Getting a seat on a boat from overseas has been the biggest issue. They’re hard to get and that’s causing long lead times and delays. There have been significant increases in freight costs, so that has been challenging, for sure.”

According to one report, from online auto site Drive, the hiring cost of sea containers for parts is up tenfold. Roy said he has seen road freight bills double. The effect on the cost of the spare parts? There’s no hard and fast rule — it depends on the part, where it’s coming from, supply and demand issues, and much else — but it could be anywhere from 10 to 20 per cent.

In his parts supply business, how has Roy tackled the challenges the market conditions have thrown his way?

“We picked up on the issues fairly early and backed ourselves in,” he said. “We blew out our stock holding by probably 30 or 40 per cent. Then we could have confidence we would be able to support the market. We knew that, worst-case scenario, we could slow up the ordering process if things started to slow down, but it certainly hasn’t.”

Roy has the luxury of not being tied to specific OEMs and suppliers. He’s able to shop about, including going to other wholesalers and trucks parts businesses to source product for his customers.

“We’ll even buy something from our opposition, put a skinny margin on it, and push it out the door, just to make sure our customers are back on the road as quickly as possible,” he said.

There are lessons to be learned from Roy’s approach to the challenges the spare parts shortage is causing our industry. Some of them are tactical. Others relate to good, old-fashioned customer service.

1 Try to make even a negative experience feel positive for your customer

“I’m trying to offer an uncompromised, personalised service,” Roy said. “I think having a clear understanding of the customer’s expectations and exactly what they need, and how urgent it is for them, and being flexible — and having flexibility in your business to be able to meet those expectations — are important.”

2

It’s always better to under-promise and over-deliver

“As long as your under-promising meets the customer’s expectations to begin with, I think under-promising and over-delivering are useful,” Roy said.

“So, if you tell someone it’s going to be two days freight and you get it there in a day, then great. Again, you need that clear understanding of the customer’s expectations and their needs. The aim is to beat those expectations.”

3 Keep the customer informed through good communication

“Keep the customer appraised of the reality,” Roy said. “Again, you set expectations through the communication, but then you try to beat those expectations.

“Understanding the customer’s requirements is key to building a relationship with them in this business.”

4 Don’t be afraid to shop around to different suppliers to get what you need at the right price

“We find that if one of our suppliers has a significant price increase on a part, then we’ve got half a dozen more suppliers up our sleeve that we can go to and find the same part (for less),” Roy said.

5 Plan ahead and carry a few extra spare parts

Just as Roy beefed up his stockroom when the spare parts shortages became clear, he recommended Members do the same, to act as a buffer against delays, freight issues and the vagaries of supply and demand economics.

“Forward planning your jobs as best you can also provides a little insurance against those kinds of issues,” Roy said. “It’s not always possible, but do it where you can."

Roy said he believes supply chain issues and spare parts shortages will be with us for “the next little while”.

“Stock seems to be flowing through more efficiently and fuel rates are improving, but there are still intermittent delays — whether that’s coming through off the wharf or getting a spot on a boat or issues getting a container or problems with road freight,” he said. “So, forward planning as best you can will help take the pressure off all parties if anything does go wrong getting the parts you need.”

Everything you need for a smoking BBQ

Gather your family, employees and friends for a classic summer BBQ. Capricorn Rewards has a range of products that will take your next BBQ to a new level. Whether at home, at the beach or at work, make sure you have everything you need to entertain your friends and family!

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8 CAPRICORN IGNITION FEBRUARY 2023

We have been increasing the range of e-vouchers for you to choose from, which means you’re sure to find the perfect e-voucher for everyone.

If you’re looking to send an e-voucher as a gift you can forward it directly to their inbox, or else print off a copy to hand over.

Note: If you placed an order for physical vouchers before 28th February 2023, they will be processed and sent to your chosen shipping address.

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Entries close April 30, 2023

Nominate your apprentice at cap.coop/stars

You turn if you want to.

The industry is for turning.

On the surface, it would seem hard to argue that a 600+ horsepower, 280 km/h sports sedan is in any way representative of where the mainstream of the automotive industry currently finds itself. But in fact, peel away the superlatives, and beneath the surface of the new-for-2023

Mercedes-AMG C63, you’ll find some of the clearest indicators yet of this season’s most important automotive megatrends. Megatrends, by the way, that are already reshaping what every automotive technician’s future will look like very soon.

To understand why, it’s important to pay homage for just a moment to the car industry that we are rapidly leaving behind. Not a decade ago, Mercedes’ high-performance C63 represented the pinnacle of the internal combustion engine’s development. It may have been an expensive folly — the preservation of a lucky few — but it nevertheless was a North Star for a deeply evolved and very aspirational concept that focused on delivering an emotional, uncompromised, mechanical experience based on that most animalistic of ideas: the V8. If any car seemed impervious to trendy, progressive ideas about eco-mindedness, “right-sizing” and quenching the petrol thirst, the C63 stood rock solid, head and shoulders above the rest.

Oh, how things have changed now, though. Few U-turns in automotive thinking have been quite so profound as the decision to jettison the iconic AMG V8 in favour of a radically new four- cylinder, electrically turbocharged, plug-in hybrid powertrain in the latest C63. Not least because more than anything, it proves that even the industry’s most sacred cows are now being slain in the face of a massively changed automotive landscape, which will spare no mercy for those players who stubbornly refuse to adapt.

So the new C63, despite being essentially a very expensive toy, makes a very salutary point. Put simply, anyone who still harbours any thought that the enormous winds of change blowing through the car industry might suddenly die down, or even reverse their course, is sorely mistaken. We are in a new paradigm of automotive engineering — where the old guard of established players has been caught somewhat off the pace by the blindingly quick arrival of new concepts in vehicle efficiency and electrification. Mainstream customer expectations — previously thought to lag behind the early adopter market shifters like Tesla — are now suddenly surging ahead, and every single one of the traditional automakers finds itself having to adapt both its products and its brand “experience” to customers who now expect far different things to those a decade or two before.

Frankly, those of us in the automotive technical space have never really experienced anything quite like this. Yes, there have been key step-changes in technology that have defined the evolution of the automobile and, yes, the pace of change in the mainstream deployment of this technology increased substantially from the 1990s in particular. During the earliest of these rolling change waves, technicians could just about afford to stay one step back from the cutting edge, to judge whether the arrival of certain technologies represented something to them and their livelihoods. Fuel-injection, ABS, OBD II, dual-clutch transmissions, the first hybrid drivetrains, etc, etc. Yet at the core of the vehicle the same basic, mechanical concepts remained reasonably steadfast. Complacency in adapting yourself as a technician was therefore unwise, but not fatal. Now, though, the core is no more. With the great monuments like the C63’s V8 falling, and the real thrust of powertrain design moving indisputably towards optimising the full battery-electric concept for mass consumption and adoption, technicians simply cannot afford to indulge in any complacent or wishful yearning for a past that is rapidly leaving us. Instead, it’s about embracing the opportunities for personal development that inevitably arise in a world trying to implement major changes to the car as we know it.

Come back to the C63 as a case in point. Look at the sheer amount of extraordinary technology embedded in this single vehicle. An electric supercharger running off a 400-volt onboard electrical system. A 6.1 kWh lithium-ion battery capable of fast, plug-in recharging. A rear-mounted, 200 horsepower electric motor powering a separate, two-speed gearbox. A regenerative braking system with the capacity to harvest up to 100 kW of electricity under hard braking. Intelligent, hybrid allwheel drive and AMG electric fourwheel steering.

It is simply an amazing piece of automotive technology — all implemented because a company like Mercedes recognises that it can no longer simply rest on its laurels and regurgitate another evolution of its favourite old concepts. What’s more, if we cast our eye even further ahead, it’s very likely that the variant after this won’t even sport a combustion engine at all.

Every technician reading this article, though, should not be intimidated by what cars like this are now offering. Far from it — we should instead embrace the opportunity with open arms and fit ourselves up to be the people who can confidently deal with any such tech, when — inevitably — these vehicles find their way into our workshops. The difference now is that the process of learning about this technology is, frankly, on another planet compared to how technicians of 20 and 30 years ago trained on anti-lock braking systems and fuelinjection. The online world today offers such vast treasure troves of knowledge at a moment’s glance, so the challenge is not so much finding information, as finding the right information from the best and most reliable sources.

Online training products like Autodata’s fully digitised, on-demand video training really are the ideal tools for the job in hand. Without intruding into your busy day to day, they allow you to constantly top up your knowledge as new and interesting technology comes onto the market. By chipping away at training each week, at the most convenient time and without the pressure of face-to-face learning, every technician can keep themselves keyed into the latest concepts without fear of falling off the pace.

In a world as fast-moving as ours, training this good is a luxury you simply can’t afford to live without.

Login to Capricorn Service Data powered by Autodata at cap.coop/servicedata

*Use of Capricorn Service Data is subject to the Capricorn Service Data - Terms and Conditions.

Carsona about to revolutionise the way we choose cars?

Imagine for a moment that it’s time for you to get a new car. How do you decide which vehicle is right for you? How do you choose the right make and model, the right engine size, the ideal fuel economy? How do you know whether you’re better off leasing it, or buying it outright?

For some people, the decision comes down to desire. They want the latest BMW or they want a Tesla. For others, it’s habit. They’re a Ford guy and they’ll always be a Ford guy. For some, it’s practicality. They need a ute because they’re regularly carrying loads, or they need a four-wheel drive because they go off-roading on the weekends, or they’re buying a second-hand car because their budget is constrained. Others (as difficult as this might be for a rev head to imagine) walk into a dealership with little more consideration than a preference for the colour red.

Buying a new car has never been a terribly scientific transaction. But that is about to change. An innovative interactive platform which will personalise the way we approach finding the ideal vehicle to match our needs, wants and lifestyle is in development.

Called Carsona, it’s in development in Perth, Western Australia, with the support of Capricorn. It’s the brainchild of Desiree Louis, a marketing graduate, and Ali Al-Asadi, a technology student at Curtin University, who together with a friend came up with the idea for the Techstars Startup Weekend — an intense, 54-hour, Silicon Valleystyle tech business idea generation competition. The Techstars event was hosted by Spacecubed, a Perthbased innovation hub, and sponsored by Capricorn, which then picked the best idea from the weekend for further investment and development through an accelerator program. Carsona was chosen.

“The combination of someone’s persona and lifestyle choices are accurately matched to a vehicle, or to amenities that a vehicle possesses,” Ali said. “That is Carsona.”

It’s an idea that seems so obvious it’s surprising no-one has thought of it before. But with the automotive landscape currently undergoing so much disruption — with everything from the switch to electric, to car sharing models, to autonomous vehicles — perhaps it is an idea which has found the right time?

“The automotive landscape is evolving and with all these feature sets and different forms of transportation, the average consumer is confused as to what is the most optimal means of transportation for their needs,” Ali said. “Carsona is an interactive platform where consumers see a range of visually stimulating questions and, based on how they interact with the system, we can give them a detailed report on why a car is suitable for them.”

Ali said the platform is “gamified”, so users aren’t merely asked a range of questions but asked to interact with the platform in various ways. The recommendations are based not just on what the user says about themselves, but what those interactions tell the platform about the user.

Is

Carsona co-founders, Desiree Louis and Ali Al-Asadi, pitched at the Plus Eight Pitch Night at Flux powered by Spacecubed.

“From our surveys we know more than 60 per cent of people don’t have much knowledge about cars and about 70 per cent are extremely or somewhat reliant on the dealer to find them the right car,” Ali said. “We’re taking away the ambiguity when it comes to finding their ideal car.”

Desiree said Carsona’s recommendations would not be based on backend deals with dealerships, nor on demographicbased assumptions, but on genuine, personalised advice.

“What differentiates us is that we use a mix of demographics and psychographic data,” she said. “Psychographics are interests and behaviours and what that data ultimately does is it finds what people want and gives them what they need. It adds a psychological component to it. We use those interests and behaviours to create a lifestyle profile and, through that, match people with the feature sets and amenities of a vehicle that best suits them.”

Desiree said at the end of the process the consumer gets a simple and “very transparent” report showing why they were matched with a vehicle.

“We don’t expect people to buy cars from our platform; we’re not selling cars,” she said. “We are creating a foundation for them to be more informed. What we expect is that a level of trust in our platform will come from that transparency, from enabling people to make an informed decision and not to go to a dealership and get sold on features they don’t necessarily need or want.”

All this sounds great for the consumer, but what is the benefit to the automotive industry?

Desiree said integrations and collaborations with industry, including manufacturers, dealerships and car sharing companies, will be important to the platform’s operation and success. Ultimately, Carsona is effectively a lead generation platform.

“Once consumers are matched to a car, we can send them towards where they can acquire the car or lease the car, or rent it,” Ali said. “We can be a bridge between the consumer and the manufacturers, dealerships, and other automotive industry businesses. We’re helping people find cars, then sending them off in the right direction to acquire the car.”

Capricorn’s General Manager of Innovation and Corporate Development, Kim Radalj, has been working closely with Ali and Desiree on the development of Carsona through the accelerator program.

“Consumers have a wide range of choice which can make it hard to feel confident in choosing the right vehicle,” Kim said.

“With new technology and drive trains an increasing feature of the market, we decided to put this challenge to the Perth startup community to see what ideas they had to help consumers make this important purchasing decision.

“The passion and energy the Carsona team bring is impressive, as is the speed with which they have turned concept into a new business model. We hope the Carsona team continues to build on their innovation, and look forward to seeing what they achieve in 2023 and beyond.”

Desiree and Ali said they hoped Carsona would be live by mid-2023, following beta testing in the early part of the year.

“Buying a car is so personal, but the way we buy a car is so cold,” Desiree said. “That’s where Carsona can step in.”

If it’s time for a change in the way we buy cars, could Carsona be that change?

Internal succession planning

by Geoff Mutton

In the small business world the term 'succession planning' typically relates to the transition of business ownership to a family member, a staff member or a pre-arranged industry associate. In the corporate world it more generally relates to the training, retention, and progression of staff into key leadership positions.

Regardless of where you fit in the business world, the common theme is planning, if you desire to ensure your business continues trading in an organised and seamless manner. Succession planning doesn’t need to be a complex process. It can be as simple as developing a list of what you want to achieve, implement, or improve in the future.

The start of a new calendar year is the perfect time to consider a succession plan covering the internal departments within your business, so this is not a succession plan for the change of ownership – that’s a totally different story.

To help get you started with an internal succession plan, here’s a checklist:

Staff planning

Staff shortages have become the biggest issue facing the industry. There is no immediate solution on the horizon, so if a valuable staff member leaves, a replacement timetable would be unpredictable in the current climate. For this reason, your planning focus must be on managing existing staff.

In a model auto workshop, the owner or manager should have a fair idea of everyone’s career aspirations, just from staff meetings or regular personal reviews. If not, consider these issues:

Is it time for pay reviews for any staff?

Do new staff need to be recruited?

Is it time to put on an apprentice? Have any technical staff expressed a desire to transition to an administration role?

Are any staff due to take long service leave?

What impact will the loss of a key staff member have on the business and how will the business adapt?

Training planning

Keeping up with technology is an ongoing issue and technological advancements will multiply as electric vehicles gain traction. For this reason, training for you and your staff must be ongoing and non-negotiable. There is no shortage of quality face-to-face and online training.

Sit down with each team member and discuss what training they would like to do in 2023.

Do staff members need specific training on any diagnostic, service or tools areas that will help the business to progress and to retain customers?

Are there jobs or services that only the owner or manager can perform?

Is there a need or a desire to train technical staff in front office administration duties?

If consideration is being given to expanding, diversifying or specialising the business, what training will be needed to ensure the effort is justified?

Tools and equipment planning

A planned investment in new tools or equipment will give the business a positive start to the new year – far better than last-minute, often rushed and poorly considered purchases just before the end of the financial year. Meet with your accountant early in the year to explore the advantages of investing in new equipment to help reduce taxable income.

Engage with the workshop team to draw up a wish list of tools or equipment that would help workshop productivity, or save time. Does equipment need updating, repairing, or replacing?

Is the workshop getting the expected results from recent tool purchases and should more be done to justify the expense during the coming year?

Is tool-specific training needed?

If consideration is being given to expanding, diversifying or specialising the business, will new tools or equipment be needed?

Information planning

It’s now almost impossible to efficiently diagnose and repair vehicles without access to data and information. The introduction of AASRA following the ‘right to repair’ campaign is opening up many new pathways to repair information. Along with tools and equipment, information and data acquisition needs to be a key topic at staff meetings.

Seek input from your team on the need for information or data subscriptions that will help the workshop perform and compete.

Signing up to AASRA would seem to be a no-brainer (www.aasra.com.au).

If programming is being considered as a workshop service, what equipment and training will be needed?

Have you implemented a data fee to cover increasing information costs?

Building planning

There’s no doubt that the eye appeal of your workshop buildings and surrounds can be a significant influence on potential customers and, therefore, a critical influence on business security. Is your lease secure or close to renewal?

If there’s a plan to relocate, how will you minimise disruption?

Are repairs needed on the building or surrounds?

Does the office or workshop need a facelift?

Is new signage needed?

Perhaps it’s time to get rid of personal items clogging up valuable space?

Are insurance policies adequate?

Financial planning

There’s a lot more to understanding your financial situation than just checking the bank balance. The essentials of financial planning involve having accurate and up-to-date financial information on your desk every month. If this is not happening now, your first chore for the new year is to meet with your accountant or bookkeeper and get it happening.

Arrange a meeting with your accountant – or maybe you need to find a new accountant.

Do you review Profit and Loss statements every month?

Do sales and profit targets exist for the workshop?

Review and consider increasing the workshop’s hourly labour rate. As costs of everything are rising, the pricing on parts will need to be adjusted.

Are there ongoing expenses that can be reduced or eliminated?

IT planning

Information technology is rarely thought of until something goes wrong. Reliance on IT systems to run the business is not a good idea unless there are processes in place for updating and maintenance. Don’t be fooled; the digital age can be a timewasting and frustrating minefield for the unwary or the unprepared.

Is the workshop point of sale system (POS) doing its job well, or is it time to trial new systems?

Is the POS being used to its full potential – perhaps further training would help?

Is there a need to integrate other IT platforms with your POS?

Is the phone system sufficient and efficient?

Does your website need a facelift? It has become standard that a website’s architecture and navigational processes be renewed at least every two years. Customers know when websites are stale. Can customers access simple-tomanage online booking forms for vehicle repair or service?

Is your customer database secure?

Planning is vital for business succession to work.

Are you properly protected and prepared? Lessons from the 2022 QLD and NSW floods

In February 2022, large parts of Queensland and New South Wales were ravaged by the most significant flood event in Australian living memory.

Many Members were affected by the devastating flooding, which proved to be the largest event in Capricorn Mutual's history, with over 200 claims totalling nearly $40 million paid out as a result.

The impact was profound: homes and business premises were damaged or destroyed, livelihoods were harmed, lives were changed, and communities were affected in such a way that many are still living through the slow and difficult process of recovering and rebuilding.

As we reflect on an event of this magnitude, we thought it would be beneficial to share some of the lessons we’ve learned by working with Members in the aftermath of the floods.

This includes guidance on what to consider when setting up your protection or insurance to ensure that you’re properly covered and how to be prepared for future catastrophic flooding events.

As these floods highlight, climate change means that extreme weather events are only going to become more frequent as time goes on, so it could really pay to ensure that you and your business are as prepared as possible.

Protection/insurance considerations

BUSINESS INTERRUPTION

You should carefully consider optional benefits available, such as claims preparation costs, accounts receivable and additional increased costs of working, as these could help you navigate through a period of business closure more comfortably from a financial perspective.

CUSTOMERS’ VEHICLES

Ensure you have adequate levels of protection in line with the types and value of your customers’ vehicles.

BUSINESS CONTENTS

Ensure you have the right levels of protection for your plant and equipment. Remember, you might need to purchase brand new equipment, and this should be considered when determining values.

HOW PREPARED ARE YOU FOR A FUTURE FLOODING EVENT?

Ask yourself the following questions to gauge how protected and prepared you are.

Flood protection:

Do you have flood protection? Is it sufficient to cover possible losses and damage from a flooding situation?

Do you know what information you need to provide or document when submitting a claim?

Do you have your risk account manager/claims department contact information at hand?

Do you keep a current inventory of your important possessions to facilitate any claims that are submitted?

Creating an emergency plan:

Do you know the different types of floods that could affect your business/home?

Do you have an emergency plan in place?

Is your emergency plan reviewed and practised?

Do you have communication plans set up to alert your family members in the event of a flood?

Are your valuable items and papers stored above possible flood levels?

Do you know how to shut off your main utilities?

Do you have an emergency kit with copies of important documents and basic supplies for at least 72 hours?

General flood precautions:

Does your property drain water away from your business/house?

Do you have flood prevention materials, such as plywood, plastic sheeting, sand, sandbags and tools available and ready for use?

Are electric sockets and wiring raised above potential flood levels?

Are all the drains running from your premises in good working order?

The Australian military’s much-loved workhorse, the Land Rover Perentie, is now electric.

RETIRED ARMY classic GOES

elec tric

In the great battle of our age — the battle for dominance between the internal combustion engine and electric vehicles — EVs have just won a great symbolic victory. Not all of them, obviously. Just one of them. Captured, by the team at British Off Road, in Queensland (the guys from Channel Ten Australia’s The Offroad Adventure Show and The Australian Bushman DVD series) it crumbled under interrogation. The Perentie switched sides, abandoning the internal combustion engine, and embracing the electric drivetrain.

It seems the march towards our shiny electric future cannot be resisted. But, whether we’re ready for it or not, at least on this occasion it has provided us with a fabulous opportunity to take a closer look at a genuinely classic military vehicle.

The Land Rover Perenties were built in the late 1980s and 90s, by Jaguar Rover Australia, at Moorebank in New South Wales. They were a military vehicle, ordered by the Australian Army to replace its ageing fleet of Series 2A and 3 Land Rovers. Officially called the Land Rover 110, they were nicknamed Perentie, after Australia’s large native goanna (a kind of lizard). A certain generation of Australians may remember the Perentie as the vehicle driven by former Army major Les Hiddins on his ABC TV show, The Bush Tucker Man.

Both one-ton 4x4 and two-ton 6x6 versions of the Perentie were built. Based on the Defender, they had either a 3.9-litre four-cylinder Isuzu 4BD1 diesel engine or a 4BD1-T turbo engine. They were, perhaps not surprisingly, practically bombproof — with a galvanised chassis strong enough not to warp when being lifted by a helicopter (seriously), a widened rear to accommodate the spare wheel, load-sharing leaf-sprung rear axles, and a wider-than-standard cab. Maximum torque? About 1800 rpm, depending on your variant, with most available at idle.

This combination, bespoke to meet the requirements of the harsh terrain and demands of the Australian Defence Force, resulted in a vehicle many consider the best Land Rover ever produced. The Perentie was right there alongside our soldiers in Timor Leste (then East Timor), Somalia, the Solomon Islands, Iraq and Afghanistan. Little wonder, then, that there is so much affection for them. And it’s also no surprise that, since the Australian military began selling them off in 2013 as part of their regular fleet replacement, Perenties have been snapped up by enthusiasts across the country (and overseas). They just scream, “I am fun; buy me; drive me”.

Being Perenties are ex-military vehicles, Australian regulations do require that anyone who buys one makes a few modifications to make them safe to take on the road. That’s to be expected. What the Government hasn’t insisted you do is whip out that 4BD1 and replace it with a fully electric drive train. Yet that is exactly what the team at British Off Road have done, after receiving a request from a forward-thinking customer.

The formerly thundering two-ton diesel is now as whisper quiet as a Dishlex dishwasher. The old engine bay is now home to five 5.3 kWh Tesla battery modules and all their associated electronics and components. Underneath is a single 100 kW electric motor. There’s a second of these in the tray, too — shifted back to help with weight distribution. It gets about 150 km on a charge, but as British Off Road co-owner Mark Calder told the MTA Queensland’s Motor Trader magazine in March last year, range wasn’t the point of the conversion. The owner of the vehicle didn’t want a large battery or a powerful motor. The conversion was focused on weight distribution and off-road performance, instead.

British Off Road has partnered with a company called Mint EV on the Perentie conversion. It was not their first collaboration, nor will it be their last. They describe their business as “a full-service workshop for converting your classic car to an electric vehicle –any make or model”. With the need to meet net zero targets and to combat climate change really starting to shake up our industry, British Off Road’s bespoke EV conversion service may well be the business model of the future. While the electric Perentie might be of no use to the Bush Tucker Man, it’s clearly a winner with the Perentie fan who bought it and converted it.

Some may see that conversion as akin to sacrilege. Others, perhaps those who can see that the battle is lost and understand which way the fortunes of fate lie, will see it as it as ensuring future generations get to see, drive, and fall in love with this Australian military classic.

Motor

Battery Pack

Battery Management System

Electric Vehicle Charge Controller

BMS/EVCC Display

Charger

DC-DC

Charge port

Gearbox/Transfer case

Power steering

Brake booster

Cabin heating

Netgain Hyper 9D IS : Hyper 9D 100v dual shaft motor and Hyper-Drive X1 inverter/ controller

Tesla 5.3 kWh - 10 modules for 53 kWh total

Thunderstruck BMSC + BMSS, monitoring 60 cell blocks within the Tesla modules

Thunderstruck EVCC

Thunderstruck Dilithium Design EV Display

Two 2.5 kW Thunderstruck TSM2500 chargers (5 kW capability)

DSD1200 High-voltage 1200 watt DC-DC

Converter Type 2 (Mennekes)

Reconditioned Defender R380 gearbox and LT230T transfer box

Defender power steering box with electric hydraulic pump

Electric vacuum pump for brake boost

High-voltage PTC (Positive temperature coefficient)

5 LESSONS

from Europe on how EVs will change your business

Although our State of the Nation Report for 2022 showed 39% of Members see no EVs or hybrids at all in an average month, and those who do see any see on average only four, that’s set to increase as governments push the adoption of EVs in a bid to meet netzero targets and vehicle manufacturers stop producing internal combustion engines (ICE).

Given we know this transition is coming, and given it will take four or five years for any mass uptake of new EVs sold by dealerships to filter through to the aftermarket, now is a good time for Members to research, take stock, and work out a strategy for long-term commercial success. Which is precisely why, late last year, Capricorn commissioned a study into a group of European markets where EV uptake is more advanced than it is in Australia and New Zealand, to see what lessons can be learned and to help Members prepare for what’s coming down the pipeline. After all, EVs are replaced sooner and require 30 to 50% less servicing than ICE vehicles,

and changing business models mean OEM manufacturers will seek to keep as much of the servicing task as possible. This is a seismic disruption to our industry and to Members’ own business models. But it’s also a fantastic opportunity for those who embrace it.

Capricorn’s General Manager of Innovation and Corporate Development, Kim Radalj, was one of a small group to tour the UK, Norway and Sweden — three markets at different stages of adoption — to see what lessons could be learned.

“In Norway, you have high adoption (80% of new car sales) because they’ve been focused on EVs for the best part of 20 years,” Kim said. In Sweden, EVs are 60% of new car sales. “The UK has (where EVs are 30% of new car sales) recently started to put in place policies, like the City of London’s No Emission Zone. And you’re seeing, across those three countries, a real push to decarbonise the transport sector. We really wanted to understand, from the workshop level, what the impact was going to be and some of the

things that our Members might need to consider for those thinking about transitioning towards hybrid and electric vehicles.”

The research group visited vehicle manufacturers, industry bodies, training organisations, workshops and parts suppliers.

These are the five big takeaways from the research:

There are no signs of workshops or service work falling in the UK, Norway or Sweden.

Kim said demand for cars has continued to grow and while new car sales are highly skewed to EV, aftermarket workshops are largely still servicing ICE vehicles as the overall car parc is much larger than new car sales.

“Even in Norway, you could still see in the workshops a preponderance of combustion engine vehicles in the aftermarket,” Kim said. “It will take time for the EVs to flow through.”

About one in five vehicles currently on the road in Norway are EVs.

Over the coming two decades the transition to electric vehicles (EVs) is set to fundamentally change what it means to be a mechanic, and what it takes to run a profitable business in the automotive aftermarket.

OEMs are responding ahead of time and will seek to maximise aftermarket share to maximise revenue

While service markets exist, OEMs have strong incentives to retain as much ICE servicing business beyond the warranty period as possible. It also sets them up to ensure that when a consumer switches to an EV they remain brand loyal.

The research group also reported that it appeared agency-based models, as trialled by Mercedes in Australia, could become the new norm, with shifts in that direction in all markets. The agency model flips dealers to commission-based models and keeps more control with the OEM. This approach also allows direct-to-consumer distribution models without risking channel conflict, and appears to be a strategic response to Tesla.

“In a low parts, low service technology like EV, it enables better margin control,” the research group said. “OEMs also retain strong control over dealer groups through training accreditation and monetisation of hardware (e.g. battery chargers) and software (security gateways, updates).”

Three key elements of EV service are safety, safety, and safety

At the heart of training are very strict occupational health and safety requirements, ensuring sufficient certification has been obtained by people seeking to do high-voltage work. “Safety is paramount in the EV world,” Kim said. “There are high safety requirements, training and awareness. That’s from people who are first responders all the way through to smash repairers and mechanical workshops, because of the high-voltage nature of the vehicles.

Sweat the small stuff at the local workshop level

EVs are a higher churn model, requiring far fewer service hours than traditional vehicles, so the “drop and go for the day” servicing model is not going to work as it will cause customer congestion in workshop parking lots. Kim said Members may need to provide a pick-up and drop-back service instead, if there is no customer waiting area or there is insufficient space. Service needs will also

change. Oil changes, the main trigger for servicing in ICE vehicles, disappear completely. The newer batteries have a low failure rate, so battery repairs are unlikely to pick up the slack. Cooling systems and air conditioners will potentially become key service areas. Tyres, brakes and suspension will still need replacing but the research group warns, “what are servicing issues today may be designed out over time by OEMs.”

Training is the main cost, with equipment costs not prohibitive

Kim said if Members decide to provide EV servicing in their workshops, the main cost will be training staff — especially for specialist high-voltage work. The cost of tools, jacks and safety equipment is not onerous. It’s the battery servicing and high-voltage charging offerings where costs increase most.

Training is about 20 hours, including online, for base-level training, including hands-on training. For high-voltage technician credentials, training can take up to 20 days.

The research group found: “OEMs like Ford and GM are requiring significant capital investment for dealers to be premium EV workshops and receive stock. Ford have asked for a $900,000 investment to be a premium EV dealer.”

“The experience of independents is nowhere near this amount. Estimates for equipment for nonbattery repair work came in at only $5,000 for internal equipment needed.

“In Norway, 20% of cars are EV and workshops are investing in charging infrastructure on the apron and in adjoining car parks. Installation only becomes costly when installing fast or ultra-fast chargers that require local network upgrades.”

Different workshops in different markets will have different needs, but Kim said the important thing was that all Members should have one eye on the future.

“While the change is probably still a little way into the future, I think every Member should really start thinking about the EV markets they want to focus on, because not everyone is going to be doing battery repairs, which are quite technical,” he said. “Start learning and build familiarity. The investment ahead will be as much about skills and knowledge as it is about tools and equipment.”

FROM PIT LANE TO P1: YOUR GUIDE TO FORMULA ONE IN 2023

by Paul Marinelli

The 2023 FIA Formula One World Championship is scheduled to include a total of 23 rounds taking it across the planet, with the inclusion of one new and very spectacular event.

The new season begins after two days of pre-season testing that will take place in the Kingdom of Bahrain in late February. The racing starts at the Bahrain International Circuit in daylight and runs into night conditions on March 5. The 5.4 km circuit located in the middle of the Bahraini desert has been the site of many incredible races and huge accidents, headlined by the miraculous escape of Frenchman Romain Grosjean when his Haas-Ferrari split in two and exploded after a freak high-speed accident in 2020.

Formula One fans are preparing to enjoy another 23 races this year in more exciting destinations than ever before in the 73-year history of the world’s highest echelon of motorsport.

The Corniche Street Circuit in the Saudi Arabian city of Jeddah returns for its third Formula One event on March 19. This long and fast seaside street circuit has already proven to be an exciting venue, with this race also running at night.

The Formula One circuit has its first long haul fly-away event for Round 3 at Melbourne’s Albert Park Grand Prix circuit on April 2. For the first time in the event’s 27-year history a Melbourne-born driver will be on the F1 starting grid when young McLaren recruits Oscar Piastri takes to the track.

The first daytime Grand Prix of the new season will also welcome Formula 2 and Formula 3 as support categories, along with regular supports, the Aussie Supercars and the Porsche Carrera Cup Australia series.

After a three-year absence, the Chinese Grand Prix was slated to return on April 16 at the incredible Shanghai International Circuit but was once again cancelled in December due to that country’s Covid Zero issues. Formula One has advised that it will not be replacing this round with any other venue in 2023.

Another challenging street circuit comes next in the historic city of Baku, the capital of Azerbaijan, on April 30. The incredibly long main straight really winds out the F1 cars to achieve top speeds in excess of 340 km/h. The first of three American Formula One races comes next with the nonstop party atmosphere of the Miami Grand Prix on May 7. This will be the second running of this event, which last year saw capacity crowds enjoying the high-speed action alongside the appearances of countless sports, television and movie stars.

The traditional European F1 season starts on May 21 with the teams and drivers racing in Italy at the historic Circuito Enzo e Dino Ferrari in Imola. One week later, the most famed, glamorous and challenging event of them all takes place, the Monaco Grand Prix (May 28).

Then in a Formula One triple header, the following Sunday (June 4) finds the Championship in the Catalonian capital city of Barcelona in Spain, at their traditional undulating circuit.

Formula One then heads across the Atlantic to Montreal in Canada on June 18 at the challenging Circuit Gilles Villeneuve. This circuit is located on an inner-city island called Notre Dame and features a notorious final corner that has seen a sudden and instant end to the race for more than a few superstar drivers over the years.

Then it is back to Europe to the Red Bull Ring that lies among the Austrian Alps for the 11th round on July 2, followed by the place where the F1 World

Championship started back in 1950, Silverstone, England, for the British Grand Prix one week later. This super-fast track is a global favourite and always delivers fantastic races.

The tight and twisting Hungarian Grand Prix in the beautiful Eastern European city of Budapest follows two weeks later on July 23, with the Ardennes Forest of Belgium bringing the fantastic Spa-Francorchamps circuit back to life one week later (July 30) for Round 14.

Grandstands of Orange will greet national hero and now double World Champion Max Verstappen for the Dutch Grand Prix at the seaside town of Zandvoort. This is an event that is more akin to a three-day dance music party as well as an excellent Formula One race taking place on August 27.

The European season ends at the fastest circuit of them all, Monza (near Milan), for the Italian Grand Prix on September 3 — the holy grail for Ferrari fans in Italy and from all over the world. Following Monza, a number of long-haul events take place with Formula One returning to Singapore for that city’s spectacular street circuit night race on September 17, followed by the classic Suzuka Raceway in Japan one week later.

October 8 brings Formula One back to the Persian Gulf at the Losail circuit in Qatar for another night race, followed by the Circuit of the Americas in Austin, Texas, for the United States Grand Prix on October 22.

The Mexican Grand Prix in Mexico City is one of the biggest party events of the season and will take place on October 29, with the Brazilian Grand Prix to be held at the Interlagos circuit in Sao Paolo the following week (November 5).

On November 18 the third American race for the season gets underway, marking the long-awaited return to one of the world’s most famous cities by Formula One after a 40-year absence. The Las Vegas Grand Prix will be run on a Saturday evening with the city’s spectacular light show ablaze along the famed Vegas Strip which forms a part of the new 6.1 km street circuit. This Formula One race is set to be the most audacious, exclusive and starstudded Grand Prix of them all. Tickets are already in huge demand, reflecting the incredible rise in the stateside popularity of Formula One racing.

It all ends in Abu Dhabi at the architectural marvel that is the Yas Marina Circuit, on November 26 under lights. This venue has grown in popularity as the exciting farewell venue for the Formula One World Championship, having hosted more than one cliffhanger finish since making its debut in 2009.

2023 F1 calendar

DATE GRAND PRIX VENUE

February 23-25

March 5

March 19

April 2

April 30

May 7

May 21

May 28

June 4

June 18

July 2

July 9

July 23

July 30

August 27

September 3

September 17

September 24

October 8

October 22

October 29

November 5

November 18

November 26

Pre-season testing

Bahrain

Saudi Arabia

Australia

Azerbaijan

Miami

Emilia Romagna

Monaco

Spain

Canada

Austria

United Kingdom

Hungary

Belgium

Netherlands

Italy

Singapore

Japan

Qatar

USA

Mexico

Brazil

Las Vegas

Abu Dhabi

Sakhir

Sakhir

Jeddah

Melbourne

Baku

Miami

Imola

Monaco

Barcelona

Montreal

Spielberg

Silverstone

Budapest

Spa

Zandvoort

Monza

Singapore

Suzuka

Lusail

Austin

Mexico City

Sao Paulo

Las Vegas*

Yas Marina

*Subject to FIA circuit homologation

CUT ALONG THE LINE

INTRODUCING CAPRICORN’S ALLIANCE PARTNERS

We know there is a fantastic range of benefits associated with being a Capricorn Member – a convenient and easy-to-manage trade account, Rewards Points on purchases made with Preferred Suppliers, support and guidance to help grow your business, access to equipment finance and business protection, and more.

However, we also understand that there are certain areas that can’t be provided for by us or our Preferred Suppliers. That’s where our new Alliance Partner Program comes in. Alliance Partners are businesses with which Capricorn has formed a relationship in order to provide products or services as a Member benefit in areas that are in addition to those offered by Capricorn or its Preferred Supplier network.

We’re yet to finalise the full list of Alliance Partners, but we’re looking to form relationships with businesses and organisations that can work with Members to provide services in areas such as business planning, financial planning, accounting software, health care and real estate (and potentially more).

Capricorn Alliance Partners are chosen because we believe that their goods or services are something that our Members need or want. In selecting our Alliance Partners we look for suppliers who are able to offer competitive pricing and a strong reputation for outstanding customer service.

It’s all part of our mission to add as much value as possible to our Members in the day-to-day running of their businesses and lives. We want to ensure that any time a Member needs a product or service, they can turn to Capricorn – or one of our Preferred Suppliers or Alliance Partners – to get the help they need.

We’ll be publishing more updates about our Alliance Partners in the future, but if you’d like any more information on the Capricorn Alliance Partner Program in the meantime, please speak with your local Area Manager.

We are very excited to add Alliance Partners to a range of benefits associated with being a Capricorn Member.

MERCEDES-BENZ COLLABORATES WITH AVATAR: THE WAY OF WATER

Mercedes-Benz is entering the next phase of its strategic brand collaboration with Avatar: The Way of Water and 20th Century Studios, which aims to embed themes such as sustainability, mobility of the future, technology and innovation within an emotional brand experience.

This marks the start of a global co-promotion campaign for the much-anticipated movie Avatar: The Way of Water from 20th Century Studios. Building on the campaign idea of “Earth is our Pandora”, the messaging focuses on responsibility to our planet, reinforcing the central Mercedes-Benz corporate messaging: Every action counts – join our journey to a fully electric future. Exclusive film footage shows Avatar: The Way of Water’s vibrant environmental imagery and locations on earth to evoke a dreamlike sense of otherworldliness, as campaign assets depict fully electric vehicles from Mercedes EQ, including the new EQE SUV.

The campaign will play out across key Mercedes-Benz markets worldwide, with assets covering TV, cinema, and digital and social media, completing a circle that debuted with the Vision AVTR concept vehicle, which was inspired by the world of Avatar.

“Avatar is one of the most successful film franchises in the world, with a message that is also central to the Mercedes ethos and the targets set out in our ‘Ambition 2039’. We share the belief that we need a more respectful approach to nature and that we must conserve its resources. This co-promotion with Avatar: The Way of Water is part of our journey as a company. We salute the narrative of the Avatar story regarding the need to strike a balance between environmental, economic and social interests. It is a source of inspiration as we pursue our sustainable business strategy,” said Ola Källenius, CEO of Mercedes Benz Group AG.

James Cameron, director, writer and producer of Avatar: The Way of Water, added: “Together with Mercedes-Benz, we have created a campaign grounded in the storytelling of the world of Pandora that further showcases our shared values of community, respect for the world we live in and sustainability. We look forward to seeing this campaign come to life and sharing our new film with fans around the world.”

The Mercedes Benz fleet will be electric-only by 2030, wherever market conditions allow. Its portfolio now encompasses eight battery-electric vehicles and three performance models from Mercedes AMG, meaning the company already offers an allelectric model in every segment in which it is represented.

Mercedes EQ models and visionary concept cars tell the story of what can be achieved now and in the future through innovation, teamwork and a shared determination to preserve resources. The Vision EQXX research vehicle, unveiled in early 2022, offers a tangible and completely realistic way forward for electric vehicle technology and future sustainability. Meanwhile, the Vision AVTR concept vehicle presented at CES 2020 in Las Vegas embodies the vision of Mercedes-Benz designers, engineers and trend researchers for mobility in the distant future.

“By highlighting the fusion of bionic design and technology, the campaign messaging aims to strengthen the importance of the coming together and co-existence of humankind and nature,” says Bettina Fetzer, Mercedes-Benz AG communications and marketing vice president. “The co-promotion campaign starting today is another milestone in the collaboration between Mercedes-Benz and the creators of Avatar: The Way of Water, and to date is the most extensive brand collaboration between MercedesBenz AG and a film.”

The Mercedes-Benz Vision AVTR is the result of an extraordinary global collaboration between Avatar, one of the most innovative film brands in the entertainment industry, and MercedesBenz, the world’s eighth most valuable brand. The name of the groundbreaking concept vehicle stands for “advanced vehicle transformation”. The biometric connection in the autonomous concept vehicle enables a completely new interaction between human, machine and nature.

Its taut “one-bow” lines and organic design language combine the exterior and interior into an emotional whole. Sustainable materials such as vegan Dinamica leather made from recycled materials, fast-growing Karuun (rattan) that can only thrive in biodiversity, and organic, compostable battery technology create a closed-loop economy. Thirty-three bionic flaps on the back of the vehicle can communicate with the outside world – with and through the driver – using naturally flowing movements in subtle gestures. Instead of a conventional steering wheel, the Vision AVTR has a multifunctional control element in the centre console. When passengers place their hand on the control, the interior comes to life, and the vehicle recognises them by their heart rate. When the user simply raises their hand, the intelligent system projects a menu selection onto the palm, allowing the user to choose intuitively between different functionalities.

This is yet another step into what will be a truly exciting future for our industry.

PREFERRED SUPPLIER PROFILES

NATIONAL RESOURCE RECOVERY VIC/TAS

18

ORANGE DOG AU AND NZ

National Resource Recovery is a father and son family business providing waste management and recycling solutions since 1993. They offer drum recycling, filter recycling, oil and plastic recycling and all other package-prescribed waste recycling in Melbourne.

All wastes collected are documented and follow a full tracking system until treatment has taken place. They proactively adhere to and operate under State Environmental Protection Authority and other regulatory policies. They believe in and adhere to the waste management hierarchy, with recycling for reuse as their primary goal. By taking responsibility for the waste, National Resources Recovery ensures the customer’s complete peace of mind.

12 YEARS

Orange Dog is a family-owned business supplying marketing and online solutions focused exclusively on automotive. Their name might give you a hint that they don’t play by the usual rules. With over 20 years of experience, they have a good handle on what works for the automotive industry.

They are so confident in the products that they even supply free trials so you can ‘try before you buy’ with complete confidence. When it comes to marketing your business, it helps when you partner with industry experts. They take care of ‘looking great’, with general or specialist print products that get you seen and help build your brand, targeted promotional options to add value to your services and create the ‘feel good’ factor with clients, and online solutions including digital marketing that expand your reach and simplify processes.

Most importantly, they make it easy — easy for you and easy for your customer — by doing the hard yards so you stay focused on your business.

CHOICE ENERGY AU 2

YEARS PREFERRED

Choice Energy offers Members peace of mind when it comes to optimising their energy spend, with quality commercial solar ensuring the business gets what they need to help offset costs, a 5-year guarantee on power generation and comprehensive post-installation support and servicing.

They apply their expertise in energy assessment and management to show you how to take control of your energy so you pay less, and use less. They can also provide you with guidance in relation to government incentives for which you may be eligible. Along with their dedicated energy management consultant, Choice Energy will back you every step of the way.

CAPRICORN

LAST MONTH'S ANSWERS LAST MONTH'S ANSWERS

LAST MONTH’S WINNERS

1st Prize - 4,000 points BRING IT ON SPRAYPAINTERS (NP) LTD

2nd Prize - 2,000 points BEECHBORO MECHANICAL & AUTO GAS

Email your entries to ignition@capricorn.coop before the 19th of February 2023. Winners will be selected by a random draw of the correct Member entries occurring in West Perth on 20th February 2023. The winners’ names will be published in the subsequent edition of Ignition. Please ensure you include your Member number and email address when submitting your entry.

WORD

Find the 15 words hidden in the jumble. They could be horizontal, vertical, diagonal or backwards. See if you can find them all!

BUSINESS CHANGE

DIAGNOSTIC ELECTRIC FORMULA

INTERNAL MANUFACTURING MOVEMENT

PLANNING PROTECTED PURCHASES RESEARCH

SUCCESSION

TURN VEHICLES