TRAINING ON TRACK.
CEO’s message
I’m passionate about supporting our Capricorn Community of Members, Preferred Suppliers, and people. That’s why I’m thrilled that this year we’re expanding the Capricorn Rising Stars Awards to celebrate more exceptional apprentices than ever before. For the first time, we’ll be announcing Region Winners from each of our Capricorn zones (WA, SA/NT, QLD, NSW/ACT, VIC/TAS and NZ), and then, from among them, an Overall Winner.
The calibre of talent among our apprentices is exciting. These awards not only celebrate and recognise our most outstanding apprentices, but they also show that—regardless of the challenges facing our industry—the future is bright. At last year’s WA Gala Dinner & Trade Show, I had the privilege of meeting last year’s winner, Megan Toia. Megan’s commitment to her job and her passion for supporting other regional apprentices were clear to everyone. I’m proud Capricorn has played a role in supporting her journey and I look forward to seeing what she achieves in her career.
Nominations for Capricorn Rising Stars are now open, so please consider nominating your outstanding apprentices. You can find out more at cap.coop/stars. A special thanks to our long-term program sponsors: Castrol, Repco Australia and The Workshop Whisperer for supporting this valuable program.
This edition of Ignition also highlights a critical finding from our State of the Nation research: that 45% of Members plan to retire in the next ten years. While this generational transition isn’t unexpected, what’s critical to understand is how many Members don’t have a succession plan in place for their business. I urge all Members to consider succession planning as you contemplate your business’s future. Don’t miss the articles on that topic in this magazine.
Finally, I’m thrilled to have our new Capricorn leadership team on board. Many of you have already met Andrew Zadow, our CEO Trade, who has been instrumental in Capricorn’s success over the past four years, most recently as our Head of Products, including responsibility for our equipment and business vehicle finance products. The Trade division is responsible for Capricorn Member relations and services, excluding Capricorn Mutual’s operations.
We’re also fortunate to welcome Steve Edgar to the leadership team as our new Chief Development Officer. Steve has also been a part of Capricorn for the past 18 months, most recently excelling as our Head of Supply. Our Growth division strengthens our relationships with our Preferred Suppliers and finds innovative ways Capricorn can support our Community in this evolving automotive landscape.
Together with the outstanding Capricorn team, Andrew, Steve and I are fully committed to leading Capricorn forward. I hope you have a prosperous year of business ahead.
Brad Gannon Group CEO
4
IS YOUR APPRENTICE A STAR?
Nominate them for the 2025 Rising Stars award.
6 GENERATIONAL CHANGE IS COMING
5 steps for successful succession planning.
8
CLASSIC RIDE: AUDI SPORT QUATTRO
The rally car that leaves other sporting heroes eating its dust.
12 PASSING THE TORCH
How a family business secured its future.
14 ICONIC MOTORSPORT EVENTS TO ATTEND
Looking for an excuse to tick something off your bucket list?
16
MIKE FORGES AN INDEPENDENT FUTURE
He saw the industry shift and decided to take a different route.
18
2024 HYUNDAI SANTA FE
The SUV is back with even more functions and features.
24
TAKING OVER AN ESTABLISHED BUSINESS
Advice for effectively managing the transition.
All information, material and content in this edition of Ignition is provided or sourced by Capricorn Society Limited (“Capricorn”) for general information only and is not intended to be advice or comment on any particular matter or subject. Before acting on any information in this edition of Ignition you should consider the relevance of it to your own circumstances and, if necessary, take professional advice. Any opinions expressed in an Ignition article are those of the relevant individual author and do not necessarily reflect the opinions or views of Capricorn. Capricorn makes no representation or warranty as to the accuracy, completeness or reliability of any material (including without limitation, any third party authored article or supplier advertisement in respect of which Capricorn merely acts as conduit) included in this edition of Ignition. To the fullest extent permitted by law, Capricorn, its officers, employees, agents and representatives disclaim any and all liability to you or any other person for any loss or damage whatsoever connected with: i. reliance on any material in Ignition; or ii. any inaccuracy, error or omission in any material in Ignition. If you’d like to stop receiving a printed copy of Ignition, you can opt-out at any time by logging into myCAP and updating your Account settings and Communication Preferences.
Is your
Star? apprentice a
Nominations for the 2025 Capricorn Rising Stars award* are now open! This year we will recognise the skills and talents of more top apprentices than ever before.
This year, for the first time, a Region Winner will be chosen from each of Capricorn’s six zones—ensuring we’re recognising remarkable apprentices across the breadth of Australia and New Zealand. The Overall Winner will be chosen from among these six Region Winners.
An award that can have a huge impact.
Winning the Capricorn Rising Stars can be a careerdefining, life-changing honour for the finalists and the winner—while also boosting the reputation of the workshop that has supported, trained and recognised their talent.
The 2020 Rising Stars winner, Gabrielle Clift, was an apprentice at Highfields Mechanical and Off Road in Highfields, Queensland. She shares: “I’ve had so many opportunities, so many doors have opened and so many times I’ve been able to share my story and hopefully inspire others and encourage others within the industry.”
At the end of 2022, with the support of her bosses, Craig and Katherine Baills, Gabrielle left the workshop and moved to Brisbane to start her new job—with Triple Eight Race Engineering and the Red Bull Ampol Racing V8 Supercars team.
Last year’s winner was Megan Toia of Badgingarra Motors in Western Australia. In nominating her, Capricorn Member Harry Burgess was glowing in his praise for his highly motivated and enthusiastic second-year apprentice.
“Megan is a great asset to my business,” he said. “She applies pressure to herself to complete her tasks to the highest standards and she is very thorough. She is a fast learner who follows instructions, can work independently and takes constructive advice well.”
Megan is using her platform to advocate for more support to encourage apprentices from regional communities like her own to enter the automotive aftermarket industry.
The winner of the first-ever Capricorn Rising Stars in 2018, Mark Smith, was nominated by his parents, Steve and Julie Smith, of The Battery Terminal in Canberra. Mark encouraged Members not to be shy to nominate their apprentice.
“Even if you don’t think they’ll win it, the confidence it will give them is something that you can’t give them during the workday,” he said.
Prizes are awarded for both the apprentices who are winners, finalists and the workshops that employ them. In 2025, Region Winners will receive cash and vouchers from sponsors Castrol and Repco valued at $2,258, and the workshop receives a 12-month Autopedia subscription from Repco valued at $1,528.
The Overall Winner also receives $5,000 cash and their workshop gets $3,000 in support and advice from The Workshop Whisperer, Rachel Evans.
Apprentices Workshop Prizes
REGION WINNERS OVERALL WINNER
$1,000 Cash courtesy of Castrol A $1,000 Repco voucher
Tickets to 2x Repco masterclasses valued at $258
A 12-month Repco Autopedia subscription valued at $1,548
An additional $5,000 cash courtesy of Castrol
A Capricorn Rising Stars Trophy The Workshop Whisperer’s Service Advisor Pro online program valued at $3,000 plus GST
Nominations are open now and close on 31 May 2025. Region Winners will be announced in September and the Overall Winner will be revealed in October.
Nominate your apprentice at cap.coop/stars
*2025 Capricorn Rising Stars Terms and Conditions apply, visit cap.coop/tc. All prizes are in Australian dollars apart from cash prizes which will be in Australian or
Generational change is
coming
The automotive aftermarket is on the verge of a clear generational shift, with the retirements of many established business owners on the horizon.
In our latest State of the Nation report, 45% of Members told us they were planning to retire within the next 10 years. Onefifth of Australian Members plan to retire within just five years. In New Zealand, 32% of Members say they’ll retire within five years.
While retirement is a well-earned entitlement at the end of a long and busy career, State of the Nation also revealed the industry has a bit more work to do to ensure the kind of smooth transition that will allow the next generation to take full advantage of the opportunity ahead.
Of those who planned to retire in the next five years, 29% had no plan in place for what happens next—they had no nominated successor, no plans to hand the business on to the next generation, no intention to sell their business, and no idea what would happen to their business, assets and employees in the event of their unexpected death.
Proper succession planning would have a positive effect on both business and the industry as a whole.
22% of Members retiring in the next five years who had a retirement plan in place said they simply planned to close their business down. Add to that the number of business owners without a succession plan who will make the same decision, and in the next five to 10 years it’s clear that, at an industry level, we face not just a loss of expertise, but potentially a greatly reduced service capacity as well.
A lack of succession planning can also cause problems inside individual businesses, including:
Poor morale and demotivated staff, as they have no long-term future in the business, resulting in reduced productivity
Trouble retaining staff, who leave to find secure employment elsewhere, resulting in reduced capacity Underinvestment in new equipment, plant and training, as the business owner prioritises profit extraction over growing the business, resulting in a devalued and less saleable business
Losing the opportunity to realise the value of the sale of the business, including the goodwill, physical assets and customer base built up over many years
If the business owner dies unexpectedly with no clear succession plan in place, it can throw the business, its employees, and the family into chaos, confusion and turmoil
Having a succession plan in place provides clarity about the future. It creates stability and clarity for staff, customers and even suppliers. By starting early on your succession plan, you know you’ll have time to mentor and train the next generation of leadership— and you motivate them to stick around because they have a stake in the future.
Members who have done this have also found having a trained and motivated successor has allowed them to step back from the business earlier—working shorter weeks, taking longer periods away from the jobs, and handing over tasks they’d prefer not to do. It also ensures the business stays up to date, as the upcoming generation of leadership is still invigorated by the challenge ahead and is keen to invest in tools, plant and training. For those handing over or selling their business to the next generation (whether they’re blood relations or not), the experience can be extremely rewarding—and certainly more profitable than just shuttering the workshop.
Here are some key steps to ensuring successful succession planning.
Find your successor. Identify who will take over the business. Talk to those who might be interested. What kind of arrangement (buyout/ partnership/handover) would they consider? What is needed to train them up and get them ready?
Find out how much your business is worth. Get it valued, so you and your successor know what it is that you’re handing over/selling.
Put a plan in place. Open communication with your successor is key. Talk to them about your plans and timeframes, ask them about their needs and wants. What responsibilities can they take over now? What training do they feel they need to prepare for management? What financial arrangements will you put in place for the transition? What legalities do you need to sort out?
Update your plan regularly. If things change, update it again.
Prepare for the handover. By the time you leave the business, your successor should be fully trained and fully capable, and everything should run smoothly.
Based on the responses we received from Members in State of the Nation, it’s clear that our industry is approaching a significant generational change. Being ready is imperative for all of us and the communities we serve. What is your succession plan?
SPORT AUDI
CLASSIC RIDE
THE RALLY CAR THAT LEAVES OTHER SPORTING HEROES EATING ITS DUST.
There’s no shortage of sporting greats born in 1985. Footballer Cristiano Ronaldo, swimmer Michael Phelps, and Formula 1 driver Lewis Hamilton all celebrate their fortieth birthdays this year.
But can any of them truly claim the title of greatest sporting hero born in 1985 when the Audi Sport Quattro S1 also debuted that year?
Ronaldo may be considered the world’s greatest ever footballer, Phelps might be the most successful Olympian of all time and Hamilton might hold seven championship titles and the record for most F1 race wins, will any of these men be able to claim the lasting impact of the Sport Quattro S1?
While those sporting heroes were still learning to crawl, the Sport Quattro S1 was doing zero to 100 kmh in 3.1 seconds. With its 2.1 litre inline-5 power plant producing 350 kW (470 horsepower—although this is understated, as the engine was capable of more), the S1 had the kind of speed, acceleration and traction that supercars have today, in the mid-80s.
Audi’s experiments with the S1 can also claim direct parentage of the direct shift gearbox and dual-clutch transmissions. It was the first rally car to reliably use all-wheel drive. Forty years after its first appearance on the track, the Sport Quattro S1 is still the most powerful rally car ever built and is consistently ranked among the top rally cars in history. It’s a firm fan favourite, thanks not just to its incredible performance, but it’s distinctive look— with oversized front and rear overhanging bumpers, wide fenders and a huge rear wing. Combine all that with the distinctive thrum of the engine and the S1 was an aggressively masculine beast of a car. Whether it was racing or standing still, it was impossible to take your eyes off of it. It commanded attention.
The original Audi Quattro was introduced to the world at the Geneva Motor Show in 1980. It paired a front engine four-wheel drive system with a turbocharged engine. It generated 147 kW (197 hp) with 285 Nm of torque and could do zero to 100 kmh in 7.1 seconds. Its top speed was more than 220 kmh. This vehicle went into production for the next 11 years with very few changes, but it had its share of shortcomings. It was heavy and oversized. Audi kept developing the design for racing, including the A1 and A2. The A2 won eight world rallies in 1983 and ’84, but Audi kept evolving the design, eventually creating the lighter, faster Sport Quattro S1 in response to new Group B rally rules introduced in 1984. It had a slightly
SPORT AUDI
QUATTRO
smaller engine than the standard Quattro, a carbon-kevlar body shell, wider arches and wheels (nine inches), a steeper windscreen and a shorter wheelbase. The Sport Quattro won the Pikes Peak International Hill Climb in 1985 with Michele Mouton behind the wheel (setting a world record time—and becoming the first woman to do so at the event).
By the end of that year, Audi had unleashed the beast—the 353 kW Sport Quattro S1 E2.
The S1 E2’s turbocharger used a recirculating air system that kept the unit spinning at high revs when the driver closed the throttle either during cornering or during gearshifts. The result was the engine could reach full power as soon as the throttle was reapplied, reducing turbo lag and generating significant power (around 368 kW at 8,000 rpm).
The spectacular aerodynamic kit increased downforce, keeping the 1,090 kg car glued to the tarmac.
It was a wicked drive. Here’s how motoring journalist Henry Catchpole described driving one in 2022 on evo.co.uk: “When the boost kicks in there is a relentless, runaway feeling to the car. You’re riding a wave in a storm… There is a powerful physicality and bareknuckle brutality that I haven’t experienced in any other rally car. I think it boils down to the fact that in 1985/86 engines were writing monstrous cheques that the chassis were struggling to cash, and that imbalance hasn’t been present in rallying since. Group B has a reputation, and it is entirely deserved.”
Audi raced in rallies for only five years. They won 23 races in that time. The company built only 224 of the S1 (and 20 of the S1 E2). Yet they had an outsized influence on the sport, the development of automotive technology, and the minds of revheads everywhere.
In 2022, a 1985 Audi Sport Quattro S1 E2 that had been driven by Hannu Mikkola in the 1985 Lombard Rally sold at auction in London for £1.8 million (A$3.61m or NZ$3.97m)— proving that the car hasn’t just cemented its place in motorsport history, but in the hearts of motorsport fans, too. And that is, perhaps, what defines a true sporting hero. What separates the Ronaldos, Phelpses and Hamiltons from the pack is not just their incredible achievements, or the way they command our attention, but how they make us feel.
Passing the torch to the next generation
When his nephew joined Beenleigh Batteries as an apprentice 20 years ago, Steve McConnell could have been forgiven for thinking the future of the family business was secure. After all, who better to pass the business on to than an enthusiastic member of the next generation?
arren was the logical person to take it on, because he’s extremely capable and a good trade, but it was a decision that he had to make, and he was on the fence for a while because there’s a lot of stress that goes into running your ship,” Steve said. “It was just a maturity thing—and he’s at the age now where he wants the responsibility and he’s ready to step up.”
Beenleigh Batteries, south of Brisbane in Queensland, opened its doors in 1988, when Steve set up shop in his parents’ garage. Steve had done his auto electrical apprenticeship and was ready to go out on his own. In the early days, he worked on starter motors and alternators, diagnosed electrical faults and sold batteries. His father, George, would help out as his offsider, and his mother, Lynn, would do the books. His brother-in-law Shayne (Darren’s Dad) would also swing by after work to help out. So, the business has always been a family concern and, indeed, Darren literally grew up in it—starting out as an inquisitive toddler, eventually doing his apprenticeship there, before spending 20 years working alongside his uncle.
For all that time, the business has operated from the same site—the workshop that used to be Steve’s parents’ shed.
Darren, though, very nearly didn’t join the family business at all. He’d been offered an apprenticeship with a boilermaker. Not wanting to lose “an exceptional and eager” employee spurred Steve into action, and he offered Darren an apprenticeship.
When speaking with Steve in December 2024, it was the day before his retirement. And who was to be Beenleigh Batteries’ new owner? His nephew, Darren Nagorcka, of course. Not that there was any “of course” about it until about four years ago.
“It was always in the back of my mind but, when I was young, some days I’d go home and think, ‘I don’t know if I want it’,” Darren said. “But I’ve always had a passion for it and I knew that, with my work ethic, if I wanted to I could make it work. And I knew it would be good for the family to take it on.”
Now, at 35, with two kids, Darren owns the business. His wife, Mikayla, has left a job in education to join the business and run the office full-time.
What sets Beenleigh Batteries apart from many businesses in the automotive aftermarket is not that the workshop has been passed to a second generation of the family, it’s that Steve and Darren had a succession plan in place.
In 2024, the State of the Nation survey found that of the 26% of Members who plan to retire in the next five years, 27% had no retirement plan in place for exiting the business.
What is most likely to happen when Members retire within the next 5 years
Steve set his retirement date five years out, which meant both families were working to a deadline. Having been in the business for a long time, Darren already knew a lot about how the business worked and knew their customers, but the pair took the time they had to upskill Darren in the finer points of business management, to learn and to prepare.
“The biggest thing, upfront, is I’ve been taking jobs on the weekend and after work to try to bring my home loan down and get a bit of capital,” Darren said. “Just to make us more solid financially, so we’re not up to our eyeballs in debt.”
While Steve and Darren said they never felt the need to get lawyers involved in drawing up the finer details of the succession plan, like the sale of assets, for most businesses having that layer of clarity and reassurance is considered best practice.
Having a succession plan in place meant both Steve and Darren have been able to prepare for the transition over several years.
For Steve, the fact he owned his workshop building meant he had an asset to sell to fund his retirement. He said with so few auto-electricians around, he couldn’t have relied on finding a buyer for the business when he needed one, so having a succession plan in place gave him retirement security.
After a lifetime in the industry, what’s Steve’s advice to the younger generation coming through?
“Success comes with hard work; don’t expect it overnight,” he said.
As for Darren, he recommends younger technicians show the boss they’re hungry to have a conversation with them about the future.
“Put it into play and go from there,” he said.
The McConnells (left) have passed the torch to the Nagorkas (right)
Darren and Steve
GLOBAL MOTORSPORT ICONIC
EXPERIENCES
Indianapolis, Indiana, USA
by Paul Marinelli
Gooseneck corner, Isle of Man TT
Starting ceremony of the 24 Hours of Le Mans
Is it time to check one (or more) of these off your bucket list?
People travel for a lot of different reasons, so why not base your next holiday around being part of an iconic motorsport event?
Whether your preference is two or four wheels, there are a variety of legendary races that can be combined with holidays in fantastic locations all over the world. If that sounds like your cup of high-octane tea, here are some of my top recommendations.
INDY 500 (23
- 25 May)
While Formula 1 has the Monaco Grand Prix as its crown jewel, across the Atlantic on the same weekend in May is the Indy 500. Held over Memorial Day weekend at the Indianapolis Motor Speedway located in downtown Indianapolis, the Indy 500 is billed as “The Greatest Spectacle in Racing”. Featuring American open wheeler IndyCars reaching top speeds of over 380km/h on the banked four-kilometre superspeedway oval, it’s an incredibly visceral spectacle and experience. With permanent seating of over 250,000, making this one of the highest capacity sports venues in the world, there’s no shortage of grandstand viewpoints. Indianapolis also becomes a racing hub over the Indy 500 week with parades in the city, various activations and associated speedway events. The city of Indianapolis is also just a three-hour drive from the fantastic city of Chicago, so there is plenty to see and do around this huge motor racing event.
ISLE OF MAN TT (26
May - 7 June)
If your preference is two wheels, there’s one incredibly exciting motorsport event that stands out above all the others: the Isle of Man TT. This time trial-based motorcycle event is held on public roads on the Isle of Man, which is located in the Irish Sea between Great Britain and Ireland. For two weeks the island becomes a motorcycle enthusiast and racing fan’s Mecca, with the 60 kilometre, 219-turn course taking in most of the north half of the Island.
With leading international Superbike riders and brave amateur riders tackling what’s known as the most challenging motorsport course in existence, the Isle of Man TT needs to be seen to be believed. Fans can get right up close to the course to witness the exhilarating action that is so unique to this multi-day event. Being within the UK, your onward travel options to pair with this event are many and varied across Europe, ensuring a great holiday before or after the event.
24
HOURS
OF LE MANS
(11 - 15 June)
Sportscar racing is currently booming in popularity with leading manufacturers such as Ferrari, BMW, Porsche, Toyota, Aston Martin and more competing in the top tier Hypercar category. This means that the 24 Hours of Le Mans will be an even bigger event in 2025.
The classic twice-around-theclock motor race has been the most important annual event in Sportscars since it started back in 1923. The 13 kilometre, 38 turn Circuit de la Sarthe sits in the heart of France, just two hours outside of Paris, with museums, parades and other off-track attractions making it a destination event.
The locals and tourists enjoy a weeklong celebration of the event, with the build-up and long distance of the race giving fans plenty of opportunities to walk their way around the insanely fast circuit to experience the remarkable Hypercars and super high performance sportscar field in full flight, whether it is during the day or under lights at night.
ITALIAN MOTOGP (20 - 22 June)
MotoGP is the Formula 1 of twowheeled motorsport, with the best motorcycle riders doing battle on prototype motorbikes. Within the MotoGP World Championship calendar, it’s hard to look past the Italian Grand Prix at the Mugello circuit as the one to attend in 2025.
The town of Mugello is located on the outskirts of Florence, enabling you to combine a great motorsport event with one of the most picturesque, historic and cultured Italian cities and regions. The circuit is one of the best on the calendar, with 15 turns over 5.245 kilometres winding through the Tuscan countryside and more than 100,000 motorbike-mad Italian and European fans in attendance. It is also the place to see the devastating power of a MotoGP bike, with the current top speed record of 366km/h set at the end of the Mugello front straight.
When in beautiful Florence you are within a short train ride of a heap of attractions including the city of Pisa, the Ferrari Museum in Maranello and so much more.
Aerial
MIKE KILLEN FORGES A NEW PATH
Mike saw the industry shift and decided to take a different direction.
Mike Killen owns Killen’s Smash Repairs—a collision workshop started by his parents, Paul and Gwen Killen, in 1970.
The business in NSW’s New England region employs 16 people and, when Mike saw the insurance industry shift towards fixed price repairs, he decided to forge a new path as an independent, specialist workshop.
“We felt that the future of repairing cars properly, and being paid properly, lay more with the manufacturer,” Mike said.
“So, we’ve aligned ourselves as an OEMcertified (Original Equipment Manufacturer certified) repairer with many companies including Tesla, and Jaguar Land Rover. We are GM, Subaru and BYD approved.”
Mike said becoming an OEM repairer wasn’t “a blank cheque to charge whatever you want”, but it did mean the cars that came into his workshop were repaired to the standard expected by the OEM.
Mike has invested around $700,000 on tools and training in recent years to reshape the business as a specialist repairer. For Tesla in particular, that’s been expensive, but it has been an excellent investment, as he’s the only certified Tesla repairer for miles around. On the day he spoke to Ignition, Mike had six Teslas in the workshop.
Mike has also prioritised innovation.
He introduced a key-to-key service, collecting customers’ vehicles with Killen’s own truck, fixing them, and returning them to the customer. It’s a service that has proven popular with insurers, because it solves several complicating factors for them in any repair.
“That’s worked in our favour and helped create a good reputation,” he said. Mike also shared that all the training and innovation had helped to keep staff motivated, interested, and working in the business.
In last year’s State of the Nation survey, 71% of collision Members told Capricorn that finding good staff was a challenge.
“About 20 months ago we moved to a fourday week, and we did that to really just shore up our staff,” he said. “We still work 40 hours up until Thursday night and then the business is still open on a Friday, but really only as a shopfront. If the guys want overtime, they’ll come in on a Friday.”
Unfortunately, while the staff are all happy, Mike reckons he’s still struggling to take
time off himself. More than half of collision Members told State of the Nation they had the same problem. It’s something Mike plans to work on.
Another challenge common across the industry is parts shortages and the increasing prices of parts.
“We’re holding cars longer because of critical components that aren’t available, which stop the vehicle from proceeding into calibration and confirmation,” Mike said. “That’s a real problem. And then the multitude of makes and models complicates it again.”
Mike said being a Capricorn Member allowed him to contact suppliers he might not otherwise deal with and had helped him run a more efficient business.
“There’s also a lot of the ancillary things that swing around it—equipment providers, the finance opportunities on smaller pieces of equipment—and we’ve taken advantage of that,” Mike said. “More recently, we’ve switched all of our insurance over, too.”
Mike took over the family business 18 years ago after the death of his father. He’d been learning how to manage the business, but the succession was unexpected. What of the next generation? Two of Mike’s sons have worked in the business. One teaches panel beating at TAFE in Ballina. The other is qualified in avionics and now works in the business as an auto-electrician—and is helping drive the workshop’s evolution into EVs. In succession planning terms, Mike has options, but nothing is set in stone. While State of the Nation found 26% of Members were planning to simply close their business when they retire, Mike said “We’ve got way too much invested in it and way too much to offer to walk away from it like that.”
“My message to the industry would be to step up and be the professionals that we should be and treat this industry as a professional one and prove to the naysayers that genuinely believe we’re at the crossroads in this industry because of the technology that’s racing away in motor vehicles. Insurers are in the desperate position of not being able to get work done in a timely manner. So, I think it really is time for us to step up and say, ‘we can do it, but we have to do it properly’. As an industry, we’re still price takers, but we’ve got a lot more leverage than we think.”
2024
SANTA FE Calligraphy Hyundai
Hybrid Car Review
Hyundai’s SANTA FE has been a well-deserved family favourite SUV for some time. This all-new model endeavours to build on this with marketing focused on family adventures and functionality. It introduces two significant changes over previous SANTA FE models, the hybrid petrol/electric engine and an all-new boxy design language.
What we like What we don’t like
Most of the exterior redesign
Driving comfort and refinement
Bose sound system
High-quality interior fit and finish
“Thought of everything” kind of practicality
What’s
Rear design is not as well resolved as the rest of the car
Rear air conditioning controls are located alongside the third row of seats
in the 2024 Hyundai SANTA FE range?
There are three models in the SANTA FE range: Active, Limited and Calligraphy. All have the same 1.6-litre 4-cylinder turbo-petrol engine making 132kW/265Nm mated to a 44.2kW/264Nm electric motor. The two motors combined produce 172kW/367Nm. All three model variants are all-wheel drive, and the only real differences are in the trim and equipment specifications.
First impressions of the 2024 Hyundai SANTA FE Calligraphy
Design wise, the new SANTA FE is a dramatic departure from its predecessors, and its square, boxy appearance is absolutely on point. It is fresh and sits well with current trends. The basic forms of the car are very clean, simple and not overly complex. It’s a big car that makes the most of the square forms to maximise the interior space. The overarching initial impression is of a modern, high-quality, well-built, well-specified, luxury family SUV.
What’s the interior like in the 2024 Hyundai SANTA FE Calligraphy?
On entering the cabin, you are struck by how spacious it is. The centre console is very well thought-out. Below the dash, there are a series of physical buttons that provide quick access to the infotainment system, mapping, audio, the air-con system and a handy set of drive-related functions. The car also has wireless Android Auto/Apple CarPlay.
The seats in all rows are made of premium-grade Nappa leather, providing good comfort levels. The driver's seat is 14-way power-adjustable with four-way lumbar support, while the passenger’s seat is 10-way power-adjustable. Located on the driver’s door are a couple of programmable buttons that can be preset with the preferred seat and mirror settings for up to two drivers. When needing to carry people, raising all the seats is simple. The floor is completely flat in both back rows, adding to the ease of access and use. Access to the third-row seating is OK, achieved by the middle-row seats sliding and tilting forward. Legroom in the third-row suits smaller occupants, and its use compromises the legroom for the second row a little, too. That said, as a family vehicle, it's a very handy feature to have.
Alternatively, when you need luggage space, buttons on the side of the boot provide a convenient remote control to drop the second row of seats. With both rows collapsed, the car has a completely flat load floor.
What’s the 2024 Hyundai SANTA FE Calligraphy like to drive?
I was a little dubious about the specification of a 1.6-litre turbo-petrol (even when combined with a hybrid electric powertrain) being adequate for such a large car. On collecting the SANTA FE, it was clear I needn’t have been concerned, as the petrol-electric engine combo does just fine.
The petrol engine cuts in and out as necessary and is almost imperceptible. It is reportedly capable of 9.5 seconds to 100kph. I didn’t specifically test that, but in Sport mode and with a good prod of the accelerator, it is suitably brisk. It has two pre-set drive modes, Eco and Sport, and a third “My Drive” mode in which you can save your favoured drive settings. For the most part, I found Eco to be perfectly adequate.
The only downside I could see with this power train is that the towing capacity with a braked trailer has been reduced to 1,650kg from the previous model's 2,500kg.
Everyday driving is great. While it is a large SUV, it handles better than its size would suggest. Yes, it rolls on the corners, but even this is less than similar SUVs. It is composed on the highway, there is good power delivery to pull well through corners, and it is light and manoeuvrable enough for those school runs and trips to the supermarket. Wind and road noise are well-damped, which would help to reduce tiredness on those longer journeys.
It comes with a comprehensive set of safety systems, and these are all well-moderated. None of the systems gave any cause for alarm, with no over-reactions or inconsistencies. The driver control buttons on the wheel and the stalks are intuitive and easy to become familiar with. The auto functions for wipers and lights/ high-beam all worked very well. I like having the drive gear selection on a stalk (Drive, Neutral, Reverse and Park) freeing up the centre console for non-essential features.
I also liked using the two paddles behind the wheel to adjust the level of regenerative braking available. This works so well that I would use it for any driving where varying degrees of slowing are frequently required, for example twisting hill roads or simply round town in heavy traffic. While it doesn’t offer one-pedal driving like some EVs, it significantly reduces the need to alternate between the accelerator and the brake pedal. At night the headlights have a very good range and spread and the auto high-beam function worked well, capable of detecting and reacting to other cars without blinding them.
This is one of the best-considered and specified family vehicles currently available. The exterior is new and fresh, and the interior is feature rich. I enjoyed my time with the SANTA FE. It's a very easy car to live with - great on the highway and equally competent around town. It absolutely lives up to its predecessors and even builds on that reputation with some clever and targeted solutions and options.
PREFERRED SUPPLIER PROFILE
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Rotorua Hyundai & Isuzu has been proudly serving the Rotorua area for over a decade. As the local franchise dealer for Hyundai and Isuzu Utes, they have built a reputation for excellence in customer service and competitive pricing. Their fully equipped sales, workshop and parts departments are staffed with factory-trained professionals who are passionate about cars and dedicated to helping customers find exactly what they need.
Rotorua Hyundai & Isuzu is committed to fast, friendly service and has the ability to ship in-stock parts overnight nationwide. Whether you need genuine Hyundai and Isuzu parts, sales, or service, they are dedicated to meeting your needs with efficiency and expertise. This dedication to quality has earned them significant awards, such as the Hyundai Parts Dealer of the Year Award in 2021 and Hyundai Sales Dealer of the Year in 2018.
rotoruahyundai.co.nz rotoruaisuzu.co.nz
Hutt City Auto Parts has been a reliable supplier of automotive parts to the Hutt Valley and surrounding areas. Established in 2002, they have built a strong reputation for providing high-quality service and access to a wide range of automotive parts. Hutt City Auto Parts offers an impressive product range including suspension, brakes, electrical components, chemicals, tools, oils, and filtration solutions.
A small team with over 80 years of combined experience in the automotive trade, they possess extensive knowledge and expertise that helps their customers navigate the complexities of the aftermarket industry. Hutt City Auto Parts has consistently demonstrated remarkable achievements, including reaching the 1-million-dollar milestone as a Capricorn Preferred Supplier – a testament to their dedication and hard work that Hutt City Auto Parts team delivers to the Hutt Valley automotive community.
huttcityautoparts.co.nz
Mexted Motors has been a familyowned business in Tawa, Wellington since 1926, making them one of the longest-serving car dealerships in the Wellington region. They are the franchise dealership for Mitsubishi and Suzuki and have always had a passion for looking after locals with a real focus on customer service.
Owned by the Mexted family (of All Black fame) for many years, the business was taken over by Mark and Nicole Munkittrick in 2021. Following the takeover, Mexted Motors underwent a full makeover, including the construction of a new building to expand the service department.
Going from strength to strength, Mexted Motors has sold many cars to Capricorn Members. Alongside John from the parts department and Zed, who supports Members with queries about financing, they have achieved the milestone of becoming a million-dollar Preferred Supplier.
mexted.co.nz
No business is safe from cyber attacks
Cyberhackers deliberately target small to medium-sized businesses like yours.
More than half of New Zealand businesses suffered a cyber attack or incident in the past year, research from Kordia has found. Could you be next?
Any business that has a website, that uses email, keeps electronic records, or uses online banking and digital systems is prone to cyber attack.
Smaller businesses most vulnerable to attack
Small to medium-sized businesses are particularly vulnerable, because cyberhackers and scammers know they don’t have the high-tech cybersecurity of larger organisations.
43% of cyber attacks are on small businesses
Only 14% of small businesses are prepared for such an attack
55% of ransomware attacks (where your data is held hostage) are on businesses with fewer than 100 employees.
The top three kinds of cyber attacks are:
1. Emails being compromised
2. Fraud that occurs after emails have been compromised
3. Online banking fraud.
We know Capricorn Members have been victims of these scammers and fraudsters. Last year one Member was scammed out of $30,000 by a fake (or phishing) email that encouraged them to change their internet banking password.
Are you safe from cyber attacks?
The average cost of a data breach in NZ is $173,000
It takes half of all small businesses more than 24 hours to recover from a cyber attack
83% of small businesses lack the funds to deal with the fallout of a cyber attack.
Ask yourself these key questions
Cyber attacks can take a long time to clean up. What would it cost your business if you could not operate for several days, or even weeks?
What are your most important assets?
What do you currently have in place to protect them?
How would you detect a breach?
How would you respond if a breach happened?
What is your recovery plan?
Advice for taking over an established business
by Jeff Smit
Over the next decade, the auto aftermarket will undergo a generational shift as many workshop owners retire. Many workshops will change hands, and the new owners could be a mix of family, existing staff or newcomers.
The transition can be both exciting and challenging. The owners of longestablished businesses are justifiably proud of what they have built, and generally, they want their workshops to survive and prosper. Whether it's a family transition, a staff takeover, or an outsider buy-out, there are many challenges to be met, but succession should be regarded as a source of opportunity for relaunch and renewal of the business to meet the demands of the modern world.
The first hurdle is to gather the knowledge.
Regardless of a new owner's future plans or direction of the business, it is essential to maintain the momentum of the business. This is as much for its longestablished customers as it is for the profitability of the workshop. The aim is for the transition to be carried out seamlessly, and the only way that can happen is if the new owners take the time to gather as much information and knowledge of the business as possible.
This information can include: Financial records and performance metrics that will provide a clear picture of the business’s financial health, including profit margins,
cash flow, debts, and assets. Historical trends can provide insight into future performance. Records of customer relationships and their history that may include such detail as customer preferences and service history. The aim is to retain customers and make them comfortable that the new owners not only know who they are, but how they wish to be treated. A well-maintained customer database is worth its weight in gold.
An up-to-date record of supplier agreements including terms, pricing structures, and details of any exclusive partnerships. Records of stable supplier relationships reflect a well-run business.
Details of staff roles and expertise which will provide an insight into team dynamics, individual responsibilities and training needs. With a real shortage of skilled technicians in Australia and New Zealand, well-trained and dedicated staff are a valuable asset to a well-run workshop. Business processes and systems. Look for good document workflows, workshop software systems and operational practices – all essential for a smooth running workshop.
Taking over a business isn’t without risks. Pitfalls to watch out for might include:
Hidden liabilities: Due diligence may uncover debts, legal obligations, or outdated contracts. There may be ongoing staff entitlements or outstanding personal leave.
Underestimating the impact of a cultural shift on the staff: The staff will be familiar with the previous owner’s leadership style, and any abrupt changes can create problems. A good transition would involve hand-over sessions between the outgoing and incoming leadership teams, so that traditions and workplace culture can be explained and better understood.
Neglecting the customer base: Loyal customers will be concerned or even suspicious enough with an ownership change, without introducing sudden changes in pricing, methods of communication, or service levels. New owners must work quickly to build their own brand of loyalty with customers who trusted the original owners. The customer database will be an important asset in this operation.
So, what should new owner change, remove or introduce to the business? The answer lies in striking the right balance between continuity and innovation.
What to keep
Retain good practices, traditions, or systems that have been successful and stood the test of time. This may involve retaining existing memberships and subscriptions, like Capricorn, with its valuable aftermarket resources, group buying power and support. Don't rush in and cut ties with suppliers or networking groups before seeing first-hand the value they bring to the business.
What to change
Identify areas within the business that would benefit from modernisation. These might include technology upgrades, a diversification of services offered by the business, or adoption of more sustainable practices.
Ensure that any changes align with customer needs and business goals. These might include new workshop management software, customer contact programs and even new workshop procedures that improve productivity and efficiency.
Be careful not to make too many changes too quickly. Give yourself
and the business time to settle and make sound changes over time; and don’t be afraid to reverse changes you make that didn't produce the desired outcomes.
When a colleague becomes the employer
Many workshops are bought by or handed down to an existing team member, and in such situations, the shift in dynamics can be complex and challenging.
The new owner must establish clear boundaries while maintaining the pre-existing camaraderie.
Professional expectations must be set very early, and understood and acknowledged by all team members, from office to workshop.
Communicate openly and share your vision for the business with your team and invite feedback. Transparency fosters trust. Ask each team member where they see themselves in five or ten years, and then try to help them achieve their goals.
Invest in leadership training and building confidence as a leader which will help you manage the team effectively and make informed decisions. Establish a team culture where everyone works together and contributes to achieve the desired outcomes.
The value of Capricorn membership
For decades, Capricorn has been a trusted partner with automotive aftermarket businesses.
Membership provides access to a strong supplier network that ensures continuity in parts and services. The Capricorn Trade Account simplifies purchasing, providing financial flexibility and valuable rewards.
With tools, resources and events, Capricorn helps its Members stay ahead in a competitive industry. Membership can be a seamless way to support the business transition, with the many membership advantages accessible to the new owners.
Taking over an established business is a privilege and a responsibility.
By carefully gathering information, avoiding common pitfalls, balancing change with tradition, and building strong leadership skills, you can position yourself and the business for long-term success.
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SPOT THE DIFFERENCE (5 differences to find!)
Congratulations to the following winners of our latest promotion:
CAP ezi-parts (October-December 2024)
December:
TOM'S AUTO SERVICES 2007 LTD
DC AUTO CARE
GLAZIER GLASS LTD
Each Member won a coffee break that included food and beverages.
Thank you very much to all the Members who participated in our latest promotion.
