The best of the best will be revealed at the automotive industry night of nights, the 2023 VACC President’s Gala Dinner
08 NEW EVS
The challenge ahead of us in using pure electric vehicles? The capacity to upload and download power to the grid (V2G)
10 VALUE CHAIN
The transition to EVs presents many opportunities across the whole EV value chain, including recycling EV batteries
14 CATALYST COMING
The motor vehicle insurance and body repair industries await the findings of an independant MVIRI Code of Conduct review
16 DRIVING CHANGE
TACC questions whether the current roadworthy arrangement really is the best the Tasmanian government can do
18 BIG DEAL
VACC ambassador Shane Jacobson celebrates Auto Electric Service’s 100 years of chamber membership
22 AIA FINALISTS
Automotive Industry Awards finalists revealed! Competition was tough, and these chamber members mean business
24 COOL CARS
VACC and TACC hit the road with ‘Cool Cars with Dermott and Elise’ to talk all things auto, with a focus on skills and careers
26 SHOWING OFF
VACC representatives report back on the SEMA/APPEX offering, and deliver the key takeaways for Australasian workshops
32 BIG CHAIR
Workshop Software CEO James Mitchell is in the Big Chair talking technology, COVID-19 and how the business serves automotive
36 CHIPS ON THE TABLE
Microchips: without these tiny wonders, bigger things grind to a halt. Take a deep dive into this small but mighty technology
42 RARE FIND
Rare Spares mixes business with pleasure as it blurs the line between staff and customers – and reaps the rewards
48 IN THE KNOW
The Ranger/BT-50 models keep the trade on its toes with their fuel filter lines, plus Holden Captiva oil cooler replacement steps
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DAVID DOWSEY
AUTOMOTIVE INDUSTRY AWARDS
THE applications are in and the best automotive businesses and personnel in Victoria and Tasmania wait in anticipation to hear the magic words, “And the winner is…”
It’s not long to go until we reveal the best of the best at the industry night of nights: the Automotive Industry Awards and President’s Gala Dinner at Crown Palladium on 13 May.
We have had a record amount of entries and a standards expert has conducted judging and auditing to separate the close field which, this year, has re-set the bar extremely high. They all have a chance to showcase achievements, gain recognition for successes and promote their business to existing and potential customers.
On the night, we’ll reveal the AIA winners, and celebrate the next generation, VACC and TACC Automotive Apprenticeships’ award winners and graduating apprentices.
VACC President Chris Hummer will present two special new awards this year, the President’s Award: Employer of the Year, and the President’s Award: Employee of the Year. These awards will shine a spotlight on people, the most valuable asset any automotive business can have.
Now, we look forward to the big night when we’ll celebrate excellence in automotive, and have a little fun along the way.
MANAGING
David Dowsey
03 9829 1247
editor@australasianautomotive.com
SUB-EDITOR
Pia-Therese Hams
DESIGNERS
Faith Perrett, Gavin van Langenberg 03 9829 1189
creative@australasianautomotive.com
CONTRIBUTORS
Steve Bletsos, John Caine, Geoff Gwilym, Shane Jacobson, Rod Lofts, Bruce McIntosh, Paul Tuzson, Kathy Zdravevski, John Khoury
Chamber ambassador Shane Jacobson will host the event, and the gala will be jam-packed full of entertainment, gourmet food and drinks, magic, music, and dancing.
The Voices Supergroup – featuring Boom Crash Opera’s Dale Ryder and Choirboys’ Mark Gable will crank up their Marshall stacks, providing ample time for people to let their hair down. Magician Matt Hollywood will also beguile the audience with his unique blend of underhanded skills.
Special thanks to major event partner DENSO for its support, as well as the
The categories for the 2023 Automotive Industry Awards:
President’s Award: Employer of the Year President’s Award: Employee of the Year
Best Small Automotive Business – Regional Victoria
Best Large Automotive Business – Regional Victoria
Best Small Automotive Business
– Metropolitan Victoria
Best Large Automotive Business – Metropolitan Victoria
Best Small Automotive Business – Tasmania
Best Large Automotive Business – Tasmania
AIA category sponsors Podium, Marsh, Commonwealth Bank and Bendix.
On the apprenticeship front, Spirit Super, Mas National and SP Tools lead the pack with their sponsorship of award-winning graduates. There’s still time to get your tickets! For information about the awards, key dates and more, visit the Automotive Industry Awards website: automotiveindustryawards.com.au
Good luck to all Victorian Automotive Chamber of Commerce and Tasmanian Automotive Chamber of Commerce member entrants and, again, well done.
Cover: 1983 DMC-12 DeLorean from Museum of Vehicle Evolution (MOVE)
Automotive indemnify VACC, its directors, board, employees, members, and its agents against all claims and any other liability whatsoever wholly or partially arising from the publication of the material, and without limiting the generality of the foregoing, indemnify each of them in relation to defamation, libel, slander of title, infringement of copyright, infringement of trademarks or names of publication titles, unfair competition, breach of trade practices or fair trading legislation, violation of rights of privacy or confidential information or licences or royalty rights or other intellectual property rights, and warrant that the material complies with all relevant laws and regulations. This publication is distributed with the understanding the authors, editors and publishers are not responsible for the results of any actions or works of whatsoever kind based on the information contained in this publication, nor for any errors or omissions contained herein. The publishers, authors and editors expressly disclaim all and any liability to any person whomsoever whether a purchaser of this publication or not in respect of anything and of the consequences of anything done or omitted to be done by any such person in reliance, whether whole or partial upon the whole or any part of the contents of this publication. Advertising accepted for publication is subject to the conditions set out in the Australasian Automotive rate card, available from editor@australasianautomotive.com
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BUS PASS IN THE GLOVEBOX
LAST year Australians purchased 33,410 pure electric vehicles, nearly 6,000 plug-in-hybrids (up 76.1 per cent over 2021), and 81,786 hybrids.
If we follow overseas trends, these figures will continue to grow and, if incentivised enough, pure battery electric vehicles will pick up the pace even more.
The single biggest change ahead of us in using pure electric vehicles will be the capacity to upload and download power to the grid (V2G).
Drivers will also be able to power their home, and auxiliary devices directly from their EV (V2H).
This technology is called bidirectional charging and it will come through in vehicles shipped to Australia this year.
I don't mean all EVs will have this capability, but many will – and no doubt they all will over time.
You will need a special bidirectional charger at home, and these are currently not cheap, but prices will fall as more people use them. So, here’s the irony…
If you have been to work and fully charged your car on a Monday – courtesy
of your generous employer – will you leave the car plugged in to run the house while you jump on the bus, and take the car back in on Thursday for a top-up?
This capability suggests we will view cars as mobile power storage devices as much as modes of transport in the future.
Who would have thought?
Before I go – if you want to really sink your teeth into a 2022 vehicle wrap-up, check out VACC Senior Research Analyst Steve Bletsos’ breakdown of the latest automotive statistics from the Federal Chamber of Automotive Industries. It’s available on the VACC website (vacc.com. au) and I also took the crew through it on the January 2023 episode of THE GRILLE podcast. Hear me out on thegrillepodcast. com.au or search ‘THE GRILLE’ wherever you listen to your favourite shows. Want to hear more from Geoff Gwilym? Read his weekly column in The Herald Sun or join him – along with co-hosts Greg Rust and Shane Jacobson – on THE GRILLE podcast. There’s auto news and views, industry insights and trends, special guests, and plenty of laughs along the way. Visit: thegrillepodcast.com.au
STEVE BLETSOS
UPSTREAM IN THE EV VALUE CHAIN
THE transition to electric vehicles (EV) presents many opportunities across the whole EV value chain, from extraction and processing of raw materials through to the re-purposing and recycling of EV batteries. Australia has some of the largest deposits of raw materials in the world that are used in EV battery production, including lithium, nickel, cobalt, graphite, and manganese.
Lithium is the most important element right now in EV battery production, but it also has the most work to do in terms of expanding supply to achieve net-zero ambitions. It’s estimated the supply of lithium globally will need to increase eightfold by 2030 in order to meet net zero targets, while the supply of nickel and cobalt will have to triple. Nickel, cobalt and graphite all compete equally in terms of how much is required, but there is replacement potential in all three depending on how battery technology evolves.
Manganese is the least critical element as there is enough in the market.
With lithium, there are two main sources – hard rock lithium where Australia dominates with half the global supply, and brine lithium, which is dominated by South America, China and Canada. In terms of which two supply sources is more important, it comes down to the next step in the process, which is refining. This is where lithium hydroxide and lithium carbonate are produced as intermediate products for different battery chemistries. For high nickel battery chemistries, which are preferred by Europe and the US, there is a need for lithium hydroxide, which is derived from hard rock, while lower cost lithium ferro-phosphate batteries are preferred by China, which require lithium carbonate derived from brine.
What nickel adds in battery chemistry is energy density, which translates into more mileage in an EV, and therefore battery producers have been trying to push more nickel into their batteries over the past five or six years. Australia also has sizeable reserves of nickel, accounting for between 15 to 20 per cent of global reserves, as does Canada and Russia, with Indonesia also moving into this space.
Cobalt is used in the manufacture of cathodes and as a stabiliser for
lithium-ion batteries. It is the most expensive battery metal on a per kilo basis and is predominantly supplied by the Democratic Republic of the Congo, which accounts for 70 per cent of the global supply. In terms of graphite, China dominates accounting for half the global graphite supply.
EV value chain lifecycle
From an upstream perspective, the battery supply chain is diversified, with Australia possessing some advantages, but as we move down the supply chain into the refining of battery metals, battery cell manufacturing and EV manufacturing, China dominates. While there is a trend towards increased downstream investment in Europe and North America, it will be difficult to displace China’s dominance in many key areas.
A major revolution occurring in Australia, is a move towards refining, by producing chemicals used in battery manufacturing. In Kwinana, south of Perth, a new lithium hydroxide plant has been built with two more plants under construction. The performance of these plants over time will provide an insight as to whether it makes economic sense to build these out even further.
The question is, how far down the supply chain beyond lithium chemicals can Australia go while remaining profitable?
Historically, this has been very challenging, and the risks are that other parts of the supply chain will be built elsewhere where energy prices and wage costs are lower. Without considerable policy support and subsidies, further downstream investment is unlikely. Even with such policy support, whether these operations are sustainable on their own in a decade’s time remains a challenging proposition.
Battery recycling
Battery recycling is still evolving globally. Once EV batteries become depleted, about 80 per cent of their
capacity is still available. It’s possible these batteries can have a second life in stationary storage, where a high energy density isn’t necessary. Other forms of battery recycling include processing to extract some of the remaining elements, such as nickel and cobalt out of spent batteries. If successful, this can be profitable,
but this is also evolving. There are risks, however, that if battery chemistries change to ones that do not contain high volumes of nickel or cobalt, then it will be difficult for the economics of such recycling to stack up.
Inevitably, there will be a responsibility on producers to make it easier for batteries to be recycled, or for them to recycle batteries themselves. This is where we can expect to see a lot more innovation in terms of battery design, where the focus will be on getting things right in the beginning, by building some circularity into the process in order to avoid multiple problems down the track. This is important, given the upstream mining side is carbon intensive. Ultimately, lithium will be hard to displace as it’s the most formidable battery chemistry right now. With nickel and cobalt, if production can’t expand rapidly enough, we can expect chemistries to switch to nickel or cobalt-free batteries, such as lower cost lithium ferrophosphate battery chemistries. We are also witnessing in China a build out of sodium-ion batteries, which are similar to lithium-ion but with 20 per cent less energy density, which makes them uncompetitive right now. If these do become commercialised, then that’s another supply chain that can be developed which is of lower cost than lithium phosphate chemistry. While there are risks with this technology, the one thing that’s certain is anything can happen over the next five to 10 years, with many swings and roundabouts expected within the sector.
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According to surveys, more than 40 per cent of workshop owners are concerned about margins and profitability in their business.
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WHILE the advancing of credit by small business to low volume retail customers is not a recommended practice, over the next few editions of Australasian Automotive we’ll examine some rights and obligations businesses have in the pursuit of recovering these debts.
As a business and under the privacy laws, you have obligations as a creditor to protect the privacy of debtors. When making direct contact, your first task must always be to ensure the person you are dealing with is the debtor. You must do this every time you make contact before you divulge any information about the debt, the process for its recovery or before providing any other confidential information. The limits on disclosing information to third parties apply to the debtor’s spouse, partner and/or family as much as they apply to other third parties. If you believe it necessary to divulge your identity as a business creditor before being sure you are dealing with the debtor (for example, if requested by the person you are dealing with), then you may do so only if that would not have the effect of divulging that the debtor has a debt. Extreme care should
JOHN CAINE DEALING WITH DEBTORS
be exercised when speaking to a person at a debtor’s workplace or when using a medium that may be shared with others (e.g. social media, landline telephones, etc).
Having established the debtor’s identity, you should then identify who you are, who you work for, and then explain the purpose of the contact. Failing to clearly identify who is calling and the purpose of the call will most likely confuse the debtor and may lead to the debtor avoiding subsequent contact. If you elect to use social media, voice mail or other technologies (such as voice messaging, or other online systems) to attempt to or make contact with the debtor, you should carefully consider the nature of the channel and its potential audience. It may be acceptable to attempt contact provided: you have a reasonable belief that contact will be with the debtor only, and have a reasonable belief that the channel is not shared with other parties (for example, a shared work email address or joint social media account).
You should avoid contacting the debtor via a certain method if the debtor has specifically requested you contact them through
an alternate method of communication, or if the debtor specifically requested you not use this particular method. When you make initial contact, you should also provide the debtor with basic information about the debt, including the name of the creditor and any assignee of the debt, details of the account and the amount claimed. A debtor may request further information or documentation relating to the debt e.g. invoice numbers and copies.
You should also provide your contact details, such as your contact phone number, postal address and email address. If the debtor communicates with the collector through the collector’s nonpreferred method of communication (for example, written correspondence), then the business should not ignore this correspondence and should attempt to contact the debtor via the same method. Lastly, you must not misrepresent your identity in any way. Never falsely state or imply you are, or work for, a solicitor or that you are a court, government official or independent complaints handling body.
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THE catalyst for the improvement in motor vehicle insurance and body repair industries is likely to be the final report of Dr Michael Schaper. Repairers and insurers acknowledge that for the purposes of promoting an efficient and competitive industry, the Motor Vehicle Insurance and Repair Industry (MVIRI) Code of Conduct (the Code) must truly promote transparent, informed, effective and co-operative relationships between repairers and insurance companies.
Former Deputy Chairman of the Australian Competition and Consumer Commission, Dr Michael Schaper, has been appointed to conduct an independent review of the Code. The Code Administration Committee appointed Dr Schaper and he is expected to deliver his final report to the committee in mid-2023.
The effectiveness of the Code does not merely depend on its content, but whether it affects the behaviour of both insurers and repairers. On this point, it appears that many on both sides of the industry are no more focused on complying with the Code in its current form than they were in the past. The magnitude of the regulatory change in recent years may have
KATHY ZDRAVEVSKI
INDUSTRY INSIGHTS
resulted in a degree of reform fatigue by insurers, but this should not influence their appetite for strengthening the Code, mandatory in a few states and voluntary in others. If the Code is perceived mainly as an obligation that can restrict insurer or repairer activities and commercial interests, compliance may not have the same priority as it would if the Code were viewed as important to the insurer and repairer’s commercial success.
In contrast, where the Code is viewed as central to outlining the customer outcomes that will facilitate the insurer and repairer's ongoing success, this is more likely to contribute to a proactive culture of compliance within the industry.
Given the difficult times experienced by both industries, a Code ‘fit for purpose’ is likely to be more receptive to advice from Dr Schaper in identifying compliance and customer best practice.
Given the high proportion of repair costs in motor vehicle premiums, ultimately it will be the consumer who will benefit from an increasingly productive and innovative marketplace delivering increased levels of competition, repair quality and customer service, with minimum disputes.
As one of the six committee members, comprised of equal representatives from both the Motor Trades Association of Australia and the Insurance Council of Australia, the independent review by Dr Schaper is nothing short of a positive and timely evolution, commissioned to examine the effectiveness of the Dispute Resolution Processes under the Code; the Awareness and Accessibility of the Code; Compliance with the Code; Governance of the Code and committee; and other issues pertinent to the effective governance and operation of the Code.
Dr Schaper has conducted a number of major independent reviews for government and international bodies, has written and researched extensively on dispute resolution systems affecting small business operators, and currently serves as the independent chair of another industry code committee outside the automotive sector. He also previously served as the inaugural Small Business Commissioner for the ACT government. Since its inception in 2006, the Code has undergone multiple reviews to ensure it remains fit-for-purpose, although this is the one to watch.
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AS part of our membership and industry support promise, the team at the Tasmanian Automotive Chamber of Commerce (TACC) – including myself –work predominately from our vehicles.
I’d say we’re on the road between 70 per cent to 80 per cent of the working week. Nothing new about that – we are in that line of business, and so is our industry. And just like any other manager leading a workforce that operates from a mostly mobile workplace, the safety of my TACC crew while they are on the road is one of my biggest concerns.
Worksafe Tasmania statistics show a high percentage of workplace injuries, and worse, occur on our roads. Yet the only regulated vehicle roadworthiness safety benchmark we can use to apply to our mobile offices (our vehicles) is that they must be registered.
I’m trying my best to understand how industry can have a workshop or a factory potentially closed down
BRUCE MCINTOSH THE BEST WE CAN DO?
because of a missing guard over a grinder wheel, yet an employer can readily ask a valued employee to hop in a car or ute that has never been roadworthy inspected – and share the road with other vehicles that are in the same boat.
Keep in mind, Tasmania’s average vehicle fleet age is 13.3 years, which is the highest in Australia. And the rate of fatal crashes per registered vehicle is four times higher for vehicles aged 15 years or older, than for vehicles aged five years or less.
The government has handed the roadworthiness responsibility to employers and has favoured targeted random roadside inspections as the best way to inspect vehicles for roadworthiness.
It’s not a level playing field and I’m very doubtful that this form of inspection is effective.
Bottom line: Is it really the best we can do?
Want to hear more from Bruce? Read his weekly column in the Mercury.
VICTORIAN Automotive Chamber of Commerce (VACC) member #4, Auto Electric Service in North Melbourne, recently celebrated 100 years of VACC membership, so get out that birthday cake and blow out them candles.
Auto Electric Service, at 81 Arden Street, is now VACC’s third 100-year member, following Wilson Bolton (which joined in 1919) and Edneys Leongatha (1920).
My mate and THE GRILLE co-host, VACC CEO Geoff Gwilym recently caught up with owner Ray Dunstan to chat about the history of the business. Chamber President Chris Hummer and Area Manager Kris Stavrevski also visited the workshop to congratulate Ray and commemorate the membership milestone.
Auto Electric Service started in 1917, based in Flinders Street, Melbourne. The two original partners later split the operation. One remained as Auto Electric Service, and the other business became Davies Auto Electrical. That business’ original building was based in O’Connell Street, North Melbourne, near Victoria Market.
Steve Layton bought Auto Electric Service from the original owner, a Mr Currie. Ray did his apprenticeship at this business, beginning in 1975. He left after completing
his apprenticeship in 1979 but returned to the business the following year.
Ray recalls the business was based in Flinders Street when it started, then moved to Bouverie Street Carlton, before relocating again to Arden Street North Melbourne in the early 1970s, where it remains.
Ray Dunstan and Bob Lewis (who also worked at Auto Electric Service) bought the business in 1982. A year later, Ray and Bob’s accountant advised them to buy the building, as the council re-zoned North Melbourne for light commercial/residential use.
At this stage, Bob Lewis had purchased a brand-new Jaguar from the UK and Ray had bought a new VK Commodore Director. They had to sell their new wheels in order to purchase the building – a painful but necessary move.
I reckon those cars, especially the Holden Commodore Director, build #1, would be worth a pretty penny in today’s hyper-inflated classic car market.
Nevertheless, Ray and Bob continued to run the business together. Ray was a qualified and experienced auto electrician who worked on heavy commercial vehicles, while Bob was qualified and experienced in light vehicle
SHANE JACOBSON BIG DEAL
passenger cars, which the business continues to maintain and repair.
Sadly, Bob passed away in 2017, at the age of 65. Today, Ray continues to run the business on his own, acting as an invaluable support and service to the local motoring community.
The member milestone is a particularly happy celebration for VACC as Auto Electric Service is a ‘neighbour’, located just a couple of blocks away from VACC’s swank new digs in Victoria Street.
Founded in 1918 and previously located on St Kilda Road since the 1950s, VACC moved into the new premises in February last year.
It’s almost unheard of for an organisation to have a member for 100 years. Having three could be unique in all the world.
So, congratulations Ray Dunstan on an incredible feat and all the best to you and your team at Auto Electric Service. See ya on the road, folks!
Want to hear more from Shane? Catch him – along with co-hosts Greg Rust and VACC CEO Geoff Gwilym – on THE GRILLE podcast. There’s auto news and views, industry insights and trends, special guests, and plenty of laughs along the way. Visit: thegrillepodcast.com.au
From left: VACC President Chris Hummer, CEO Geoff Gwilym, Auto Electric Service owner Ray Dunstan and Area Manager Kris Stavrevski
IT’S unlikely that executives at BMW headquarters in Munich pictured one of its revolutionary new dealerships would be located in regional Australia, but for VACC member Shepparton BMW, that’s exactly what happened.
After 30 years in the Goulburn Valley, it came time to move. Located on the Goulburn Valley Highway, in Kialla, on the drive into Shepparton from Melbourne, the business’ dealer principle and director Aaron Brain decided to expand and relocate across the road into a brand new dealership that became the third worldwide – and the first in Australia – to incorporate BMW’s new corporate identity.
Thirty-eight-year-old Brain originally came from the construction industry, but joined the Jeff Tracy-owned Shepparton BMW in 2012, rising to become dealer principle.
Tracy – who established BMW’s presence in the Goulburn Valley in 1992 – acted as a mentor, and Brain enjoyed the friendly atmosphere.
“It was family owned and the environment was very supportive,” Brain said.
Regional dealership blazes new ground
A few years into his tenure, Tracy mentioned to Brain he wanted to transition out of the business.
“We had some talks and in 2013 I took over the company,” Brain said.
Tracy remained on hand to mentor Brain, something the younger member of the duo appreciated.
“Jeff ran a great business. He was very focused on the local community and this is something I have tried to continue,” Brain said.
Local is a relative term, for Shepparton BMW’s PMA is enormous.
“It stretches from Deniliquin in southern New South Wales to Echuca in the east and Wangaratta in the west.”
The dealership also has customers in Melbourne.
“Some of our customers like us to pick up their car, drive it up the highway to give it a good run, service it, and then return it to them. It works for us. It works for them.”
The new state-of-the-art premises at 7969 Goulburn Valley Highway is super-impressive and it incorporates the BMW and MINI brands.
The reception area looks like a five-star hotel, with polished concrete, LED lighting and interactive displays for vehicles and merchandise. Customers can get a great-tasting coffee there, as well.
The workshop facilities at the rear boast 1,100 square metres of climate controlled floor space with 11 bays which – with 12 staff working across a range of vehicles – can handle up to 40 vehicles at a time.
To save water and time, a robotic car wash – that can clean up to 50 cars a day – has customer vehicles spic and span in no time.
A dedicated detailing area sits nearby.
To align with BMW’s corporate vision, Brain’s dealership has a self-
sustainable model, generating all its water and electricity requirements.
The new facilities include 45,000-litre water tanks and a 100-kilowatt solar system to power the building and car-charging stations.
Having these state-of-the-art facilities would be meaningless if Brain’s people failed to scrub-up, too.
“We offer a lot of training for everyone from the technicians to our sales team.
BMW and MINI cars are incredibly complicated and – with 10,000 volts running through some electric models –can be dangerous as well. Our people need to know what they’re doing,” Brain said.
And with two brands, 13 series of vehicles and more than 60 models, the sales team needs to keep on top of a lot of information.
"Everyone does a minimum of five days of training offsite, plus there is a lot of online training, too,” Brain said.
One thing the expansion has achieved is to create the space for a new brand offering. The addition of a MINI Garage to the dealership is new to the region, with a lot of possibilities.
“MINI is very exciting for us. We think it will do well here,” Brain said.
BMW Shepparton has a full trophy cabinet, having won BMW Group’s Rural Dealer of the Year award five years in a row. In 2018, the dealership won the ultimate award, clinching the BMW National Dealer of the Year.
But, for Brain, the fundamentals remain the same and, at its core, is the local community.
“We’re heavily involved with local people and groups, and support local events and charities as much as possible,” Brain said.
“It’s all about the locals.”
Aaron Brain has a clear vision for Shepparton BMW (above). The new facility is cutting-edge and boasts an award winning team (below)
Compare your merchant service today.
With Commonwealth Bank, VACC members can receive special discounts on EFTPOS solution.
We can also offer a customised comparison^ of your current merchant service to Commonwealth Bank’s merchant solutions, to help you discover which product is right for you. We have flexible terminal and pricing options to suit your needs today and that can change with you in the future.
To find out how much you could save with Commonwealth Bank, contact VACC on 03 9829 1152 or email marketing@vacc.com.au and they’ll put you in touch with a Commonwealth Bank Relationship Manager.
2023 Automotive Industry Awards (AIA) finalists have been announced by the Victorian and Tasmanian Chambers of Commerce.
The awards give hardworking automotive businesses an opportunity to showcase achievements, gain recognition for successes and promote themselves to consumers. All VACC and TACC members were eligible to apply (accredited and non-accredited).
This year, the industry recognition program was reimagined and re-launched under the banner of AIA – so it’s a great year to get involved. All applicants are thanked for their participation, but only some can be finalists. Award winners will be revealed at the 2023 President’s Gala Dinner at Crown Palladium in Melbourne on Saturday 13 May. The next generation, VACC and TACC Automotive Apprenticeships’ award winners and graduating apprentices, will also be celebrated on the night.
Hosted by VACC ambassador Shane Jacobson, with entertainment from the Voices Supergroup featuring Boom Crash Opera’s Dale Ryder and Choirboys' Mark Gable, magic with Matt Hollywood, and great food and wine – it’s set to be the industry’s night of nights. For tickets and more information, visit: automotiveindustryawards. com.au/gala-dinner
Special thanks to major event partner DENSO for their support, as well as AIA category sponsors Podium, Marsh, Commonwealth Bank and Bendix. Additionally, VACC and TACC Automotive Apprenticeships sponsors, Spirit Super, Mas National and SP Tools.
President’s Award Employer of the Year
Mont Eltham Auto Electrics
Sheen Panel Service
Patterson Cheney
President’s Award Employee of the Year
Heath Mullavey
The Hub Automotive
Brooke Dixon
Regan Peugeot
Danny Younan
Nick Theodossi Prestige Cars
Eddy Sechi
Sunbury Ford
Glenn Goodall
Shepparton BMW
Kraige West
Autobody Solutions
Peter Muddyman
The Mower Shop Seymour
Phillipa Gray-Finning
PJ’s Discount Tyre Service
Thomas Jones
Cables Auto Electrics
VICTORIA
Best Large Business Metropolitan Agpower
Western Mitsubishi
Western Honda Holdings Pty Ltd
Werribee MG, LDV, SsangYong
Western Highway Investments Pty Ltd
Werribee Mitsubishi
Heaths Road Investments Pty Ltd
HM GEM Engines
BM Tech
Original Engines Co
Best Small Business
Metropolitan
Malvern Auto Services
Truck and Compaction Services
Peninsula BM
Mega Trim
TCC Service Centre
Alltune Automotive
Major Partner
Primeserve Automotives
Buckley’s Auto
Ozwide Tools
Sheen Panel Service Bayswater
Sheen Panel Service Frankston
Sheen Panel Service Glen Waverley
Sheen Panel Service Tooronga
Sheen Panel Service Sunshine
Sheen Panel Service Reservoir
Stop & Go Brake and Service Centre
Sheen Panel Service Mitcham
Sheen Panel Service
Sheen Panel Service Ferntree Gully
Sheen Panel Service Coburg
Sheen Panel Service Croydon
Dent Maestro
Prorepair Auto Care Centre
Allpoint Automotive
Northern Fleet
Essendon Panels
Total Collision Repairs
Best Large Business
Regional
Seymour Toyota
Morrow Motor Group
Mildura Motor Holdings
Shepparton BMW
Always There Automotive
Best Small Business
Regional
Ballarat Roadworthy Centre
Highbridge Motors
Azzi & Nusser Service Centre
Peter Murphy Automotive Repairs
Forbes & Summers
Euro Panels
Sheen Panel Service Drysdale
Sheen Panel Service Ocean Grove
Drive Safe Service Centre
The Mower Shop Seymour
PJ’s Discount Tyre Service
CPK McLaren MotorBody
Ballarat Car Sales
Boag’s Diesel Mechanics
TASMANIA
Best Large Business
Tasmania
Kate Presnell Bodyworks
Specialist Auto Group
Bob Jane T Marts Moonah
Powell Motor Group
Cooper Automotive
Best Small Business
Tasmania
Blackmans Bay Motors
Total Automotive & 4WD
Autobody Solutions
Howell Automotive
Glenorchy Auto Electrics
FINDING labour and retaining staff are the big issues in automotive right now, and the Victorian Automotive Chamber of Commerce (VACC) and Tasmanian Automotive Chamber of Commerce (TACC) are tackling the skills concern from a number of angles – including the silver screen!
The Chambers have hit the road with Cool Cars with Dermott and Elise, a brandnew television show on 7MATE starring Dermott Brereton and Elise Elliott. Both self-confessed rev heads, the duo visit eight businesses across Victoria and Tasmania, sitting down with business owners and their apprentices to talk all things automotive, with a particular focus on skills and career pathways.
The businesses have been selected from different industry sectors to showcase the various opportunities available in automotive. Look out for Geelong HarleyDavidson, Geelong Isuzu, Bendigo Mazda, Zagame Tullamarine, Dale Paterson Motorsports, Maskells Customs & Classics, Blackmans Bay and Agpower.
Elise Elliott even took a pit stop at the Museum of Vehicle Evolution in Shepparton to admire a 1983 DMC-12 DeLorean (featured on the cover of this issue of Australasian Automotive).
AutoCareers is the place to start. Search a job today – plus chamber members can also list their vacancies for free!
Cool Cars with Dermott and Elise is on 7MATE on Thurdays at 4.30pm,
In addition, VACC and TACC have launched AutoCareers, a careers portal to thrust automotive careers in front of young people and their influencers, along with skilled workers looking for a career change. Whether you’re a skilled worker looking for a career change, or just starting out and keen to explore apprentice opportunities,
Dermott and Elise took a roadtrip across Victoria and Tasmania to speak to the people who keep Australia moving - and check out some wicked wheels along the way
Melton Toyota celebrates 50 Years
MELTON Toyota’s Keith and Joan Harrison, their son Grant (Dealer Principal), the extended Harrison family, and the dealership team chose to celebrate their business milestone with local guests and industry leaders, including VACC CEO Geoff Gwilym and Toyota Motor Corporation Australia Vice President National Sales and Marketing Operations Sean Hanley.
A great night, the team took the opportunity to share some tales from their automotive journey so far – from Keith’s early panel beater days to Melton Toyota becoming the largest single dealership in Victoria.
The event was also marked with the official opening of a new 4,500sqm advanced automotive facility – the space in addition to existing 2700sqm showrooms and workshop. The space has all the technical specifications of a cutting-edge commercial operation including solar power for its electrical charging stations and all plant and equipment, water recycling and re-use for the vehicle wash-bay and advanced chemical capture for the workshop. Over its 50 years in business and as Melbourne’s longest family-owned Toyota
dealership, Melton Toyota has achieved accolades of the highest order. It is Toyota's number one most recommended Melbourne dealership for Guest Experience (in nine of the past 11 years), and it has earned two Toyota President's Awards, and two Toyota Gold Awards.
Through the support of local organisations, Melton Toyota has also invested over $500,000 in assisting the community.
“We're proud of these achievements because at the end of the day, we're all locals, and we all care deeply about the service you receive and our place in this community.
“Success is about humility, meeting challenges, and being flexible. It's about listening, and supporting staff, guests, and family alike. And it's still about a little service station on High St, in 1973,” said Grant Harrison.
Keith and Joan Harrison cut the cake with Toyota Motor Corp Australia Vice President National Sales and Marketing Operations Sean Hanley, and VACC CEO Geoff Gwilym
SEMA/AAPEX reflections
WORDS VACC Industry Policy Advisor
John Khoury
IT was great to be back at the epicentre of the automotive aftermarket world in 2022 and, while the SEMA/AAPEX conference was slightly down on exhibitors compared to previous prepandemic shows, it did not deter people from all over the globe coming together to celebrate once again, reunite with old friends, and learn about the latest advancements in automotive technology. There were plenty of educational seminars to keep the mind busy, primarily focused on the automotive industry’s transition towards electrification and the importance of automotive service technicians upskilling to maintain and service an electrified fleet. Another major topic was understanding the importance of proper calibration on advanced driver assistance systems (ADAS).
Many Australians, including VACC representatives, made the journey across the Pacific to join in on the fun, some of whom will still have aching feet – the sheer size of both conference venues was something to behold, and from all reports this is set to increase again this year.
I was fortunate to have Frank Grocl, Chair of VACC’s Automotive Repairers’ Division (ARD), and my colleague, VACC’s industry policy advisor for the body repair, towing and dismantlers divisions, Kathy Zdravevski, accompany me on this trip. The goal was to reconnect with key industry personnel, build new relationships, keep abreast on emerging technologies, and learn more about how the US is transitioning towards vehicle electrification.
In conversation with many people in the know, I was surprised to learn that, other than California, there was little movement towards electrification in the US. Workshop owners were slowly gearing up to ensure they could cater for their clientele, however EV sales are moving at a slow pace due to supply chain issues, lack of infrastructure, and the reluctance of many Americans – particularly in the mid-west and southern states.
Right to Repair (R2R) continues to dominate the policy landscape and no matter which industry association I spoke with, it remained the number one priority for the US aftermarket. Interestingly, Australia has quickly become a source of inspiration when it comes to R2R, since the implementation of the Motor Vehicle Information Scheme. Only a few years ago, the situation was very different. The US has had over 10 years to get this right and, from what I learnt, there is still a long way to go – in part due to the inability for the aftermarket to access service and repair information within telematics systems. There is a huge push for new law reforms across the country – which are currently
being blocked by automakers due to cyber security concerns. It is envisaged that 2023 will be a year in which key R2R reforms and initiatives will shape the automotive industry moving forward.
Like Australia, other issues impacting the sector, albeit on a much larger scale, are skills shortages, high cost of living and supply chain disruptions. It was reported that many large businesses, particularly in the parts and tyre retailing supply chains, may not survive the current financial crisis.
Overall, a very worthwhile trip and I would highly recommend anyone who wants to invest in their business and stay abreast of modern technologies to pencil in November this year and attend one of, if not the largest, automotive aftermarket events on the calendar.
Extract from SEMA/AAPEX Report. VACC/TACC members can request the full report directly from John Khoury: jkhoury@vacc.com.au
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Are EVs greener than ICE vehicles? The answer is it depends…
TO help tackle climate change and aid governments around the world in reaching their legislated emissions targets, a greener form of personal transport is a growing necessity. But are electric vehicles (EVs) greener than internal combustion vehicles (ICE)? Well that depends on a few things. Pitcher Partners undertook the following analysis based on the report issued by Volvo, which compared the total lifecycle emissions of their XC40 & C40 ranges. Pitcher Partners has also analysed the impact of use phase as these would be the emissions directly attributable to Australia’s targets. These total lifecycle emissions should be the figures decisions are made on, as they hold the country accountable rather than outsource the production phase emissions problem to other countries.
Currently Australia’s energy generation is dirty, relying on burning dinosaurs to provide energy. Australia’s energy mix, and its reliance on coal & gas is the major factor driving our local carbon intensity.
Source: Our World in Data – Electricity Mix
lifecycle emissions by 7.1 per cent. Nearly all use phase emissions reductions are eroded by the emissions during manufacturing, which are 68 per cent higher for EVs. However, real impacts start to occur when moving toward more renewable energy as a percentage of overall electricity mix – such as when considering EU-28 & Wind Solar in the above table.
Based on the carbon intensity of the electricity generation mix, we have used the relative increase in carbon intensity in Australia’s mix and applied this to the use phase emissions of the Volvo report to estimate a more accurate use phase in an Australian context. Currently, every EV powered by Australia’s current electricity generation mix only reduces
On average electric vehicles will likely never breakeven, as the average car lasts 10.4 years times 12,600 kms, and that means that the average vehicle will only travel 131,040 kms (ABS 2018 Study). It is important to note that Volvo has a used phase of 200,000 km, this equates to 15.87 years for the average Australian vehicle. The breakeven point
in terms of kilometres is approximately 146,000 and equates to lasting 11.6 years for the average Australian vehicle. This then means cars are required to last 11.5 per cent longer than the current average, meaning more than half of EVs will not be beneficial to the environment. However, for renewable energy powered EVs, this is reduced to only 49,000km. What is needed is action on electricity generation – the Volvo report does draw stark conclusions when using renewable energy. The Australian Labor Government has committed to an 82 per cent renewable energy target by 2030. This is an imperative step in the environmental case for EVs. Electric vehicles become a remarkable proposition once the generation method is factored in, with emissions break even reduced to a fraction over four years. There are EV owners who no doubt will use fully renewable sources of electricity powering their EV. However, as EV adoption rates increase, more and more will be unable to avoid using Australia’s power grid. Let us be clear here – we are pro Zero & Low Emission Vehicles (ZLEVs). We believe in the long-term future of electric vehicles, the direction the industry is trending towards, and that change is needed. However, electric vehicles in isolation do little to nothing to help Australia’s emissions targets. These are hard truths to face, and some will not, or do not want to, face them. But all sectors must work together in a coordinated fashion to reduce Australia’s emissions. No industry can be a cowboy.
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JAMES MITCHELL
CEO, WORKSHOP
SOFTWARE
From completing an Associate Diploma of Micro Computer Systems to becoming Chief Executive Officer of a thriving company with a global presence, James Mitchell has always been driven. An idea, which would go on to become Workshop Software, was born of a clear goal – to build a simple to use and cost effective software that would help support the everyday workshop owner.
The origins of Workshop Software began in the 1960s. Tell us about this. It’s amazing to think that I’ve been involved in the automotive industry for my whole life. Not my whole working life, but literally my whole life. When I was born, my father Ron was working as a parts interpreter for a Toyota dealership in Sydney. I remember as a young boy, sitting on the parts counter at my Dad’s work, talking to the staff, and going into the service department and seeing what looked like magic going on. Cars pulled apart, engines in pieces, and I was thinking, ‘how are they going to put that back together?’ Dad always had an entrepreneurial spirit and always wanted to do his best in everything he did (that’s a great trait I’m grateful he passed onto me). He always wanted to run his own business. When I was a teenager, he was very close to purchasing a parts business near where we lived, and he also seriously looked into a local tour business. Thankfully, fate had him stay in the automotive industry when he and a friend, John, became partners in what was the very first integration of what would become Workshop Software. A couple of years later, Dad needed a programmer. I was studying and working in IT at the time when we decided I would join the business and form a partnership where we both owned the business. His automotive, sales and admin skills, along with my young exuberance, a lot of tenacity and a bit of knowledge about software systems complemented each other really well. The rest is history. In 2006, Ron retired, and I purchased his part of
the business. A little while later I saw the very exciting future of software in online Software as a Service (SaaS) for small business. I felt this would revolutionise how small businesses would run and would put massive power into the hands of small business, something only big businesses could previously afford.
This greatly excited me, as I’ve always been about helping the industry, and growing even the smallest of businesses.
I feel I can safely say my prediction was true, and now you can get a huge amount of power into the hands of any business for a relatively small investment.
What can Workshop Software do for automotive businesses?
At Workshop Software, our mission is to ‘make a massive positive impact to the automotive aftermarket’. Changing trends in car ownership, vehicle technology, and the increasing pressure from dealerships and large groups, puts strains on the tens of thousands of small independently owned workshops. Consumer expectations are ever increasing, particularly in relation to the level of service they get (not how the car was fixed, but how they are treated); the way they are communicated with, particularly in relation to technology such as text messaging, online bookings, and being able to access their vehicle history through their own portal. At Workshop Software, everything we do is through the lens of that mission. We have a vast suite of benefits that are scalable from the
smallest workshop to a large multi-site group and everything in between.
How did COVID-19 change the administration processes of workshops?
This is a great question, and I feel that most small independents need to reflect on this a little more. Let me explain why.
I am very proud of the part Workshop Software played in ensuring continuity of service for our clients to keep their business operating with minimal disruption. The fact our system is online means you can access it anywhere. Of course, this was a massive advantage over traditional on-premise systems, and meant that any workshop owner isolated at home could still run their business.
I am also proud of the way we engaged our clients and the wider industry. We quickly provided videos and other resources to our clients to ensure they could engage with their customers as quickly and efficiently as possible. The contactless element of COVID-19 was handled very well by Workshop Software, considering the software has the benefits of electronic signatures, contactless payments, online bookings, self-help customer portals and more.
How is Workshop Software keeping up with the constant changes in technologies?
The interesting thing about a technology company is that you need to keep a close eye on computer technology, but also be an expert in automotive technology and business technology. We pride ourselves in developing new and innovative ways to improve our customers’ experience,
and in doing so make general improvements to the industry.
Workshop Software has a proven track record of firsts:
The first workshop specific software in the world to offer an online Software as a Service
The first and still the only small business software in any industry to offer true Business Intelligence embedded free in the application
First to integrate with Repco Navigator
First to integrate with Xero
The first SaaS to implement a booking management system
First to offer online bookings
First with a mobile app
First to offer inspections (vehicle heath check) system
First to include a free customer portal, where vehicle owners can see all their invoices and vehicle history, make bookings, accept quotes, and much more
The first and still the only automotive software on the QuickBooks Appstore. QuickBooks has very stringent security and technology requirements that most other companies cannot comply with, and therefore do not pass the test to gain access to the AppStore.
Workshop Software has a global reach. Tell us about this.
Australians are can-do people and are innovative. I love to see Australian companies succeed internationally, and it’s great to see Workshop Software’s continued growth both in Australia and New Zealand and also around the globe. Even though Workshop Software has a strong focus on our homeland of Australia, my vision that SaaS software can be run anywhere is un-wavered. Our focus to build a great system that’s easy to use, great value for money, and is appropriate for the location, enables Workshop Software to be a global brand. We have customers in over 35 countries all across the world, with a focus on Australia, New Zealand, USA and Canada, UK, and South Africa.
Teamwork is important in running a successful business. What teambuilding activities are undertaken at Workshop Software?
We are very focussed on vision, mission and culture. We don’t just have them in an induction manual, we speak and act them all the time. This is very important for any successful business. I like to think Workshop Software is a great place to work, and we have
an awesome team. Our growth has attracted great talent, including numerous team members from the industry. We now have over 100 years of workshop industry experience in our team. The team is growing, and we are looking for great people all the time. We have team members in three states within Australia and, of course, in the UK. To ensure great culture, you need excellent values, and high communication. The whole team meets twice a week, which is a great way to ensure good comradery amongst the team. In addition, the team in the Sydney office has Friday afternoon drinks, a great way to unwind at the end of the week.
In February this year, we got the whole Australian team together, including our interstate and remote team members, and we all climbed the Sydney Harbour Bridge. The next day, we had an offsite team day where we planned out our goals and had a very productive and fun day, then relaxed over dinner.
What’s the best piece of advice you have received?
Always grateful, never satisfied. Anyone who lives in Australia has a privilege that billions of others around the world would love. By being born
in this great country, we’ve already won! As a son to migrants, I realise that even more so, as I’ve seen why my grandparents moved to this great country like many others, for a better way of life, and to make something of themselves and provide opportunities to their children. Be grateful of that. Be grateful of our culture and values, our systems, beliefs and way of life. Speak kind words. Smile. Help others. The never satisfied talks to not being complacent. We should ask questions, reflect, think deeper, be self-aware, and always aim for growth and development. Keep learning, keep growing. You’re never too old to do anything. You wrote the book How to get profitable fast! Tell us about the book and what inspired you to write this?
This goes back to my mission: A massive positive change to the automotive aftermarket industry. I wanted to help others through my many years of dealing with thousands of small businesses and seeing the struggle that many of them face. Starting your own business is a massive achievement, and you should be congratulated for doing that. The challenge is there is so much to learn, and I’d suggest every small
business owner would say there was more than they realised. The book provides some simple tips. We get caught up in the day to day, and don’t focus on the important not urgent items, (if you’ve not read about this, search for the time management quadrant) and the book will help you to think a bit differently and ensure you’re focusing on the right things. If you’d like a free copy, visit workshopsoftware.com
Besides writing books, what other activities are you involved in outside Workshop Software?
Life is busy. I have five kids and an amazing wife. Three of our kids are now young adults, and it’s been a privilege to see all of them grow up.
I have a great passion for football, particularly coaching. I’m the coaching director at my local club, and I’m honoured to have a part time job with the local football association as a coach mentor and coach educator. This includes delivering coaching courses, and going to coaching sessions one on one to help football coaches. Community sports of all kinds are part of the fabric of our society. It gives me great pleasure to see kids have fun, improve their skills,
learn and be part of a team. The impact a coach has on kids sport is significant, and if I can help coaches, I’m ultimately helping lots of kids. What is the future of Workshop Software?
I am very excited about the future. While we don’t always get it right, all the metrics in our business right now point to a very bright future. We have plans in place to further evolve our application and services. A technology company like ours provides lots of opportunities for growth and further innovation, however, we need to ensure we plan and prioritise correctly to ensure we deliver the most robust systems with the greatest value. We will keep innovating and continue our customer first approach. We want to bring even more value to our clients, and help them to do even more in their business.
James Mitchell leading the Workshop Software team from the front (below left). Creating a winning culture is important to high performing buisnesses, like Workshop Software (below)
bigger things grind to a stop
THERE must still be some readers who remember their first electronic ignition. Come service time, you’d get out the timing light, loosen the distributor, twist it a bit this way and a bit that way and then tighten it up in exactly the same spot you started from. After one or two times, it became clear what a waste of time the procedure was. Such is the reliability of electronics. Since those days, more and more microchips have been incorporated in all vehicle systems.
Of course, automotive chips have been a bit thin on the ground over the last couple of years. Some figures show new car production was down by about 10 million units in 2021, four million in 2022 and, this year, the industry will still turn out three million fewer cars because of the chip shortage. Microchips themselves are obviously complex, so is their manufacture, so are the economics surrounding them and so is the geopolitical environment in which all this occurs.
Chips are manufactured in hyperclean factories known as fabs (fabrication facilities or foundries), in industry jargon. Taiwan has most of the high-end foundries but the industry is much more complex than that. Even though Taiwan makes most of the world’s most advanced chips, it’s US companies that design the circuitry on the chips and create the software used to do so. Japanese companies are the main source of the silicon wafers used, while a company called ASML in the Netherlands makes the laser etching machines used by fabs around the world. ASML is the only company in the world that makes machines capable of creating the most advanced chips. What does advanced mean?
Automotive manufacturing shuts down without microchips (left). Intel has been around for as long as microchips have been with us. The company has just released the world’s fastest desktop processor, the i9-13900K (above). Silicon ingots, or boules, have this shape because of the way they’re created from a vat of molten silicon. Wavers are sliced from the boules (below). Wafers can be and often are covered in hundreds of chips (bottom)
Microchips are broadly defined by what’s known as their minimum feature size, expressed in nanometres (nm). Feature size can refer to a number of things, but often it’s transistor gate size, or at least it was. Exactly what it means these days doesn’t really matter. Just know that smaller is better. How small is small?
A nanometre is a billionth of a metre or one millionth of a millimetre. The most common sizes in use today for advanced chips is either 10nm or 7nm but some manufacturers produce 5nm or even 3nm units. Back in 2021, IBM created a 2nm chip, which is still in development. There’s even a 1nm chip, but it’s still in the research phase. For some perspective on all these nanometres, consider that the average
human hair is about 90,000nm thick. The diameter of the smallest virus is about 14nm (depending on who you ask), while DNA is about 2nm. So a 1nm or 2nm chip is vanishingly small. For that matter, so is a 10nm or 20nm chip. These sizes and the technologies that create them are collectively referred to as nodes. To maintain some perspective, though, it’s important to note a 5nm microchip doesn’t have twice as many transistors as a 10nm node. Where do automotive chips sit in all of this?
Automotive chips range from 90nm down to 40nm in size. Why are they so large compared with the latest advanced chips? Well, automotive chips don’t have the same need for miniaturisation as phones or other compact devices. The industry settled on this size range decades ago and there’s been no need to change it. Doing so wouldn’t have much practical
benefit in a car and would cost much more. The sunk costs for fabs and associated technologies that create automotive microchips were amortised decades ago and, of course, one of the main pressures in automotive manufacturing is cost reduction. Given the number of chips consumed by the automotive sector, a saving of just one cent on each of them could result in the saving of many millions of dollars. But there’s more to it than that. A vehicle is a challenging environment for a microchip. Temperature and vibration are two of the most difficult problems. An automotive chip might have to operate in conditions from well below zero to considerably more than 100 degrees Celsius. And dealing with vibration calls for more robust interconnects, both within a chip and peripheral to it. That means a bigger chip. Because automotive microchips are often used in safety critical applications, they must be extremely reliable. Such chips are arduously tested under extreme conditions. Also, the fabs and processes used to produce them are certified to do so. This certification process can take months. Overall, a new automotive chip can take years to design, develop and certify before being used in a vehicle. The automotive microchip industry simply can’t respond or scale up production quickly.
This is essentially why auto manufacturers are experiencing a chip shortage. When they suspended orders as a consequence of COVID-19, fabs took orders from elsewhere, which tied up production capacity. Returning to the pre-pandemic status quo has been difficult. The shortage is easing, but production capacity, technical complexity and market forces have made the process slow. Still, most of that is probably pretty common knowledge by now.
Aside from feature size, microchips are defined by the size of the silicon wafers upon which they’re built. Technical progress in wafers is defined by increasing size rather than size reductions, as with individual chips, or dies as they’re called when they’re cut from wafers. Automotive chips are made on 200mm wafers. Again, this is old, established, fully depreciated technology. The most modern chips are made on 300mm wafers and 450mm wafers are in development.
Larger wafers are more economical but more technically difficult to use. This is easier to understand when you consider each wafer can undergo more than a thousand steps to build up the many layers modern chips have. Each wafer remains in the production stream for an average of 12 weeks from start to finish.
Casual consideration of wafer size belies the complexity of changing from one size to another in production. The equipment needed to manufacture microchips is tailored to a particular wafer size. Moving from 200mm to 300mm wafers cost the industry billions of dollars. While lower tech microchips are inexpensive, creating new manufacturing plants to make them is still very expensive. Also, they have the lowest profit margins. Fabs, in general, are expensive and those equipped to manufacture the most advanced chips cost multiple billions of dollars.
So, if microchips are square, why are wafers round? Doesn’t that waste a lot of space at the edges? There are two
main reasons. First, silicon ingots (known in the industry as boules) are grown by slowly drawing them out of a crucible of molten silicon. This is done so each ingot is comprised of just one single silicon crystal with virtually no defects or inclusions. Silicon grown this way naturally takes a cylindrical form. Second, the coatings applied to silicon wafers are spin deposited, so a round wafer helps achieve an even coating, which is essential. A square wafer would definitely result in an uneven coating. In turn, this would result in a high reject rate for the chips, or dies, cut from the wafer. The fact hundreds of dies are formed all over a wafer begs the question, can a wafer be processed to make a single gigantic chip? Such chips can, and are, made but they mitigate one of the main purposes of microelectronics –
miniaturisation. Although such a chip won’t fit into a phone, there are applications in which these chips have a useful function. The technology is called WSI (Wafer Scale Integration) and a US company called Cerebras manufactures a wafer sized chip called WSE-2 (Wafer Scale Engine). It’s built for AI processing and Cerebras says it’s the fastest AI processor in existence. Despite the purity of materials used in chip manufacturing and the ultra-cleanliness of the fabs, defects do occur on dies, always. Optical inspection can find defects at wafer level but, for minimum feature level inspection, other techniques are used. For conventional multi-die wafers, the reject rate might be five per cent, however some sources say defect rates are
often much higher. A Cerebras employee stated the WSE product mentioned earlier also has defects but that the chip was designed from the outset to have alternate paths around defect sites. This is a strategy used with individual dies, too.
The US invented microchips and originally dominated manufacturing. However, free markets generally move towards greater production efficiency. What’s more, free markets don’t care about political concerns. As we said, microchip manufacturing is a globally dispersed industry in which companies in various countries have settled into specialised tasks. Back in the late 1980s the government-subsidised Japanese chip industry started growing and competing with the American
industry, so the Americans effectively banned Japanese chips. The Japanese moved to specialising in the production of wafers.
The Taiwanese, on the other hand, decided to simply build fabs and make chips, and only chips. Again, this was government-subsidised, but it didn’t bother the Americans too much because it freed them from the expense of building very expensive fabs. The US still controlled the software and design without which Taiwan couldn’t make chips: a symbiotic rather than competitive relationship. The largest Taiwanese chip manufacturer is TSMC (Taiwanese Semiconductor Manufacturing Company), but it can’t make the machines that it uses to make the chips. It has to purchase them from the Netherlands. Dutch company ASML is the only company in the world that builds machines to make the most advanced chips. This is because ASML developed them first and has been developing new processes and making iterative improvements to them for nearly four decades. Currently, the
most advanced technology for making cutting edge chips is EUV lithography. The machines that do this are worth a couple of hundred million dollars each and ASML is selling them as fast as they can make them. If manufacturing something as small is 2nm is impressive, the fact many billions of such elements all work together on a microchip is truly staggering. The human mind cannot design or even understand such a thing. That’s why the design software is so important. Fitting ever more transistors on smaller and smaller microchips is the name of the game, and it’s a game in which the US intends to rebuild its domination and maintain it, at China’s expense.
China is obsessed with Taiwan for a number of reasons. The One China policy is the best known, but another extremely important factor is microchip manufacturing. China manufactures lots of chips but they’re lower order types used in comparatively simple devices like microwave ovens, refrigerators, alarm clocks, etc. This is known as trailing edge technology as opposed to leading, or cutting edge technology.
China doesn’t yet have the expertise, equipment or software to manufacture higher level, leading edge chips used in things like the latest high-end phones, AI applications and, most importantly, advanced weapons. Both Taiwan and South Korea can, but it’s Taiwan that makes
more than 90 per cent of the world’s most advanced microchips. It’s able to do so because of its symbiotic relationship with the US in the field of chip manufacturing. China wants to get hold of the technology bound up in those fabs while the US is adamant they must not. In fact, limiting Chinese microchip technology was a large part of what the whole Huawei kerfuffle was all about some years ago. Taiwan manufactured the advanced chips for Huawei equipment, but the US didn’t like that and put a stop to it.
The US is currently using its strong influence to block companies around the world from supplying China with the technology it needs to make its own advanced chips, including ASML lithography machines from the Netherlands. It has also banned the sale of complete leading edge chips to China.
At the same time, the US Federal Chip and Science Act of 2022 allocates $280 billion dollars to technological development of which about $70 billion is designed to
help US tech companies rebuild complete cutting edge microchip development and manufacturing on American shores. TSMC intends to be part of this and has started work on a new cutting edge fab in Arizona, which is where IBM also has one. It must be said, though, the company is also building other fabs around the world. By the end of the decade, the microchip industry is predicted to be worth $1 trillion. While the US sees complete selfsufficiency in semiconductor technology as a commercial imperative, strategic defence concerns are at least as important. It also wants to insulate itself from supply chain disruptions like those of the last couple of years. We’ll be looking at supply chain vulnerabilities next issue.
Rare Spares blurs the line between staff and customers
WORDS Paul Tuzson
IT seems not all business maxims are true all the time. One popular example says pursuing passion leads to success. Another warns that going into business with friends leads to disaster. The history of iconic Australian automotive company, Rare Spares, confirms the first and rebuts the second.
In the early 1970s, the three company founders, Les McVeigh, John Rayner and David Ryan independently searched for early Holden parts all over Australia. It was a passion. Sometimes they were in friendly competition with each other but they always got on well. It wasn’t long before they decided to combine their efforts. Their loose confederation continued for some time and the trio earned a reputation as a good source for FX and FJ parts. In 1974, Les and John formalised their association by adopting the business name Rare Spares. Dave officially joined the venture a short time later and all three are considered co-founders of the company. Perhaps it was their demonstration of thoroughly aligned interests prior to incorporation that set a firm foundation for the success of the business going forward. Rare Spares was incorporated in 1976. We classify the company as iconic because it enables enthusiasts to keep Australia’s motoring history alive and running, and will do so well into the future.
Success was self-funded and steady from the beginning and now the range goes well beyond FX/FJ models. The first parts manufactured were FJ sills and EH door belts. Rubber suffers terribly with time, so the introduction of new door rubbers and windscreen seals proved popular and continues to do so. Also, modern materials mean new rubber seals will last longer than the originals. Reproducing extruded and moulded rubber parts takes industrial scale technology. Rare Spares searched for it worldwide and found the best source in Thailand. This is not surprising as Thailand produces more than 37 per cent of all the world’s rubber. Although Rare Spares manufactures a lot of its own stock, the company can’t do everything in-house. The need to find alternative means of production for many products over the years led the company into associations with more than 100 different manufacturers. In 1986, the company took advantage of the OE quality replacement parts it could produce through its diversified manufacturing capability and successfully marketed them directly to General Motors-Holden and Ford Motor Company. This was the same year in which Ford
reproduction parts were introduced. Sometime later, Chrysler parts followed, covering enthusiasts of every ilk. Also in 1986, the company formed Raresco to sell industrial rubber products. ‘86 was a big year. In 1998, these two arms of the business were brought together under RSP Australia Pty Ltd. In 2006, all aspects of the diversified business that had begun in the early ’70s were brought together under the new name RSP Automotive & Industrial Pty Ltd and that’s the current name. In 2021, the industry heard RSP Automotive & Industrial (still generally referred to as Rare Spares) had been sold. Rumour circulated Repco now owned it. Of course, this was incorrect. The new owner was, and is, a company called GPC Asia
We asked RSP’s current CEO, Lance Corby (a 41-year employee) what difference the acquisition had made in day to day operations.
“None” he said. “They [GPC] know that they don’t understand our particular part of the business as well as we do, so they just leave us alone to get on with it”. He added that during all the years Rare Spares has been operating they haven’t had any failed products. There are some interesting reasons for that, which also gives an insight into the company DNA.
Les, John and Dave were obviously car enthusiasts, or petrol heads, if you prefer. Just as obviously, Rare Spares customers are all car enthusiasts. And the company tends to attract car enthusiasts as employees. A good number of the employees at the company build classic cars at home. In fact, whenever Lance mentions an employee by name, he also tends to mention the car they’re building. Lance built his first car when he was 14: an EJ station wagon for his father. So, Rare Spares management, employees and customers all share one main passion – restoring classic cars. It all comes together to form a unique clique
The retail presence has grown to 11 company owned stores around Australia (left). Rare Spares has expanded into bigger and bigger premises over the years (top). The current RSP headquarters and warehouse. Once again, it’s not big enough (above)
other companies try to achieve with slick marketing but which RSP simply is.
This has unique benefits for product development. Les explained everyone in the sourcing department is a passionate classic car builder. After they go home they tend to spend a lot of time on social media in various groups or on eBay looking for samples, parts or whatever and basically interacting with the customer network. “They’re all over these things. They have a passion,” Lance says. “When they leave work they don’t really leave work. They love it. And when they bring a product to market they love to see it fly.” This sort of dedication and enthusiasm can’t be built by any number of motivational, team-building weekends. The product development team has a wide range of industry experience, and that’s
The company made its name in Holden parts but, later, they added Ford and Chrysler parts (above left). Organised chaos (right, top to bottom). Current warehousing. It’s all controlled by inhouse developed ERP software. It’s a far cry from the early days (below)
invaluable. Terry, for instance, has spent a lifetime in the auto parts industry. The youngest member, Michael, is a mechanical engineer and Tom is an auto elec. Commodore VB to VL window switches are an example of bringing such industry experience to bear in product development. Factory Commodore switches were known for burning out. So, the Rare Spares replacement parts were designed with up-rated contacts on Tom’s advice. The team has products in development all over the place from fuel tanks and
sender units to suspension items. The company now stocks more than 10,000 parts and still develops 300 or 400 new parts each year. That’s a product decision virtually every day. Some are small, like clips and the like, but others are substantial, like full panels and floor pan sections. They all require testing for fit and durability, which takes time. Ideas for products come from all directions. Sometimes Lance takes ideas to the product sourcing department, sometimes they bring them to him and sometimes others in the company have ideas. Customers can also get involved by leaving ideas or requests via the website.
Sometimes, previous products suggest new products. For instance, HQ to WB was a long era in local automotive history and cars from those years needed lots of parts. As VB to VL Commodores became collectable and worth rebuilding, a range of products similar to the earlier models was needed. However, it’s not that easy. There was a lot more technology involved in parts for the Commodores compared with earlier models. So, it was a lot harder to find people to make those products. Outer belt strips are a good example. For those unfamiliar with the term, an outer belt strip is the sealing strip along the top of the door panel at the base of the window. HQ to WB belt strips are relatively simple compared with those for VB to VL Commodores. The increased technology meant more manufacturing processes. Specifically, the strips start with a roll-formed stainless steel section. This has to be rubber coated, but doing so requires a dual curing process to replicate the original part. Then, felt has to be applied to the inside edge. This is known as flocking. After flocking, the strip has to be trimmed to size with a number of cut-outs. Finally, the cut-outs
when he had hair. He’s been with the company for 42 years. Rare Spares retains staff (left). RSP supplies a wide range of OE replacement/ service parts for classics and more modern cars, including Japanese models (below left)
have plastic moulded sections around them. So, a company capable of all these operations has to be found. The sourcing team found one that does a lot of these sorts of parts for the US market. Even so, the development process took three years. MOQ (Minimum Order Quantity) is also a consideration because large quantities of stock tie-up warehouse space and capital that could be used for other products with a lower MOQ and faster ROI. As far as space is concerned, 500 door belt strips take up much less space than, say, 100 fuel tanks. The company is about to release a range of new fuel tanks for Commodores. They know they’ll sell because HQ tanks did extremely well in the past. HQ to WB commercial tanks have flown out the door as have XA, XB and XC tanks, so they know these new tanks will also sell.
What? An HR front left guard for $95! (top left)More modern door belt strips embody a surprising amount of technology (top right). Current CEO Lance Corby fitting a door rubber in the research centre. Again, note the different models in the background (above). Lance, back
Says Lance, “People would rather put a new tank in their restoration than have someone cut the top out of an original, clean it out, fix any leaks and then weld the top back in. Commodore tanks in good condition sell for stupid money”. These new tanks are made in Taiwan by a company that does them for the entire global market. This is the company that
Company founder (now
never lost his love of all things FJ. Here’s his personal FJ getting its paint prior to competition in the La
Panamericana open road race for which it was built. It’s about the toughest FJ you’ll find
made the Opel fuel tanks, so it already had half the tooling required because of the Commodore’s relationship to Opel models. Still, they are slightly different so extra tooling was required, which adds to production costs. Determining feasibility involved sending tanks to the company and getting a quote that included all the tooling needed, MOQ and other things, from which the part price was calculated. From this, they calculated how many units they’d need to sell to get their money back. RSP knows the needed ROI won’t be achieved immediately so it had to consider how long it would take, and how that would affect cash flow. All the numbers worked out, so those tanks will be available soon. Overall, RSP uses something more than 100 different manufacturing companies for its products. However, the company still manufactures many parts itself. The local pressing plant turns out sill panels, patch panels, boot and floor pans and other parts that only sell in low volume but which remain essential to enthusiasts. Full panels are made overseas on specialised, much larger deep draw presses with expensive tooling. Fortunately, just before Holden shut down local
manufacturing, RSP was able to obtain some original equipment tooling. By way of summary, Lance says, “Other companies buy a box and sell a box. Rare Spares develops a part from start to finish, puts it in a box and then sells the box”. This brings up sales. Originally, Rare Spares moved a lot parts by mail order. These days, of course, the full range of sales and delivery options are available. Back in the early days before expansion set in, warehousing and retail were in the same building. These are the conditions under which the company’s ERP and CRM systems were created 35 years ago. The company has always employed its own software people and has continuously developed its systems in-house.
Retail operations constitute a very important part of the company. Initially, RSP opened its first store in conjunction with Auto 1. Lance says the arrangement worked well and continued for about 15 years. He points out RSP learned a lot about retailing from its association with Auto 1. Eventually, though, Rare Spares grew to the point at which it needed a dedicated store that could display a greater range of Rare Spares products. He sat on the Auto 1 board and says he was reluctant to announce the decision to the rest of the board at the time. Now, there are six company owned stores, four distributors and many other retailers around the country and Lance says the results have been fantastic. And, of course, Rare Spares products are also available in Repco stores.
Australia has a proud automotive heritage that spans much of our entire national heritage. Pieces of it are on display in museums, which is right and proper, but much more of it is on live display on our nation’s roads. RSP/ Rare Spares helps it remain so.
Scan this code for a video with more historical information about Rare Spares.
An FJ in the research centre. Note the different models in the background. This is where Rare Spares tests and develops products (top). Taiwanese presses. These are essential for full panels (above). Rare Spares covers all eras of Australian classic cars (right)
retired) Dave Ryan
Carrera
JOB CARDS BOTH
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RANGER/BT-50: FUEL FILTER LINES AND POWER LOSS
The Ranger and BT-50 models seem to be keeping the trade on their toes with a variety of potential problems if not careful, such as fuel filter replacement. These filter assemblies contain a fuel filter, water separator, water in fuel (WIF) sensor, and a recirculation thermostat. These units can also be called a fuel conditioning module, depending on which manual you read. They have four fuel line fittings which, if incorrectly fitted, may cause a reduction in engine output. This article is an overview of some of the causes of this problem.
Operation
THE fuel enters the assembly from the fuel tank via the larger hose fitting on the lower part of the upper section of the assembly with a red connector (see Diagram 1). Fuel then flows through two layers of foam, which allows water droplets to form and separate from the fuel. The water pools at the bottom of the assembly, which will cause the float on the water in fuel (WIF) sensor to rise. Once about 80ml of water collects, the sensor will trigger. This will tell the PCM (power-train control unit) to turn on the WIF indicator in the dash. Fuel then flows through the filter to remove any foreign particles, then out of the assembly via the lower large fitting with a blue connector (see Diagram 1) to the inlet of the highpressure pump (see Diagram 3).
The two smaller upper fitting are for return lines
The larger lower ones are for the supply. It is easy to mix up the return line and cause some drama
The high-pressure pump pressurises the fuel and sends it to the common fuel rail, then the injectors. Fuel that has been released from the Fuel Metering Valve (Suction Control Valve for everyone else) on the highpressure pump or leaked off from the injectors is returned to the fuel filter assembly. The return line from the engine goes to the smaller fitting on the upper part of the assembly with a blue connector (see Diagram 1).
The upper part of the filter assembly also has a return valve which controls the flow rate of the fuel returning from the engine, which maintains the specified back pressure in the fuel rail. The fuel has been heated by the pump and the engine and now enters the recirculation thermostat. The recirculation thermostat controls the flow of the fuel depending on its temperature. At low temperatures (below 20 degrees Celsius) the thermostat opens to allow the warm fuel returning from the engine into the intake side of the filter to warm up the incoming fuel. The increased fuel temperature will prevent the diesel
from waxing, which is when the paraffin in the diesel solidifies and clogs the filter. When the fuel temperature is above 33 degrees Celsius, the valve closes, and fuel is directed back to the tank via the smaller fitting on the upper part of the filter with the red connector. Earlier models had a fuel cooler fitted before the tank, which has been deleted in later models.
Under normal conditions, the fuel temperature range should be between approximately 40 to 60 degrees Celsius. The fuel temperature sensor is mounted on the high-pressure pump and gives a signal to the PCM so it can adjust injection timing, pulse width and injection pressure (see Diagram 3).
High Fuel Temperature
As fuel temperature increases above the normal range, the PCM will gradually restrict engine output. If the fuel temperature sensor gives a signal above 80 degrees Celsius, it may feel like the vehicle has entered Limp Home Mode. However, it will not log a DTC, which is inconvenient. There are a few common areas that can cause this problem.
There is a recirculation thermostat in the top part of the filter assembly
The alignment markings moulded into the top of the filter
Incorrect Return Line Placement
Checking the fuel line placement should be the first thing you check as it is easy and fast. As you can see in the diagram, there are four fittings on the fuel filter (see Diagram 1).
Two smaller ones at the top are for the return lines, and two larger ones below are for the supply lines.
During a fuel filter replacement, it is easy to plug the return lines into the wrong position. The filter will bleed up OK, and the engine will perform well on a test drive around the block. However, after about 30 minutes of driving (depending on ambient temperatures and loads on the vehicle), the fuel temperature will rise, and engine performance will gradually reduce. Once it has cooled down, everything will be OK again. With the return line in the wrong position, the fuel cannot recirculate correctly, which increases the fuel temperature. The positions of the lines are moulded into the top of the filter. However, it is unclear. So, take notice of the fuel line orientation before removal. Take a photo with your phone or number the lines and their position. Long story short, the coloured line connectors should be aligned: BLUE-BLUE-RED-RED (see Diagram 2).
There are stories of thousands of dollars of injectors, pumps and sensors being fitted in attempts to fix this issue.
Big Blue: Supply from filter to engine
Small Blue: Return from engine to filter
Big Red: Supply from tank to filter
Small Red: Return from filter to tank
High-Pressure Pump
There were many high-pressure pump failures in earlier models. These pumps have three pistons actuated by a camshaft and return springs. The fault relates to the pistons sticking, or the springs failing which allows fuel to remain in the pump cylinder and overheat, which is picked up by the Fuel Temperature Sensor. The pump has been revised to avoid these problems (see Diagram 3).
Fuel Temperature Sensor
The Fuel Temperature Sensor should be checked with a compatible scan tool by inspecting the parameter IDs (PIDs) or live data for that sensor. With the engine cold, it should read within 20 degrees Celsius of the ambient air temperature. If not, you should check the wiring for open or short circuits and repair any found faults. Then check the resistance across the terminals of the sensor. There are no resistance specifications available, so check for shorts or open circuits and replace as required.
The resistance of the sensor decreases as the temperature increases, and the resistance increases as the temperature decreases (see Diagram 3).
Kinked Return Lines
If these vehicles are used off-road, the fuel lines can be crushed or kinked. This may restrict or block the return lines, which may result in higher fuel temperatures.
Any modifications made to the fuel system, such as extra or modified fuel tanks could be a problem. It might be worth inspecting the quality of the installation, and the operation of the non-standard components.
Some members of the trade recommend fitting a second fuel filter and water trap between the factory unit and the engine. As water and foreign particles still seem to be getting into the pump and causing damage. However, you will need to do your research on the flow rates and quality of any product you fit, so you are not inducing more problems. This article is not a comprehensive list of all the reasons why these engines lose power. However, it should allow you to avoid this problem when replacing the fuel filter, and other possible causes of high fuel temperatures.
For wiring diagrams and diagnostic information on the Ford Ranger and Mazda BT-50 with the 2.2-litre and 3.2-litre diesel engines, log on to VACC MotorTech and go to the ‘Engine Management’ module for these vehicles or call the VACC Tech Advisory service.
2011-2016 Holden Captiva Series II 2.2-litre Z22D1 (LNQ)
The Holden Captiva with its multiple engine and transmission configurations has kept many technicians busy. One procedure that we receive requests for is the removal and refitment of the engine oil cooler on the 2.2-litre Z22D1 (LNQ) diesel engine. This article provides a systems overview and procedure to complete this task.
LIKE many other engines, the Z22D1 has an engine oil cooler. Automotive oils are designed to operate within specific temperature ranges to maintain their viscosity (resistance to flow or thickness). If the temperature is too high, the oil’s viscosity will increase (become thinner) which will reduce the oil’s ability to lubricate and protect the engine from damage.
The Z22D1 oil cooler is an oil-tocoolant heat exchanger. This allows oil to pass through a series of smaller passages which are surrounded by engine coolant. As the coolant is at a lower temperature than the oil coming from the engine, the heat from the oil is transferred to the coolant. The coolant then flows to the radiator which then transfers the heat to the atmosphere. The oil cooler is mounted to the engine via an assembly which incorporates the alternator mounting brackets and the engine oil filter. There are rubber gaskets which seal this assembly to the cylinder block. Coolant is directed to the oil cooler via hoses which attach to fittings on the outside of the cooler.
Shane from Shane’s Autocare gave us some details on a fault he discovered
in a Captiva with 160,000km on the odometer, that occasionally ran hot. After pressure testing the cooling system, nothing obvious was found. The coolant in the expansion tank was inspected, and an oily bubble was found to occur about every 30 seconds while the engine was running.
To eliminate external engine components, the EGR cooler was bypassed by removing its coolant hoses and joining them together to close the cooling system. However, the bubbles still appeared. Next, the oil cooler was bypassed, and the bubbles stopped. See Diagram 1 After a successful diagnosis, the oil cooler was replaced, and the cooling system flushed. The bubbles were gone, and now the engine temperature stays in its operational range.
Do not permanently bypass any cooler assembly if it’s faulty. The engine was designed to have them, and you may cause yourself and the customer more expensive problems later. If there is a fault in the oil cooler (or EGR cooler) replace the unit. The oil cooler can be replaced without removing the whole bracket and oil filter assembly, which is bolted to the engine block, as the following procedure explains. However, it is fiddly.
Disassembly
Disconnect the negative battery terminal. Drain the coolant by releasing the cap on the expansion tank, then unscrewing the drain cock in the bottom of the radiator.
Remove the serpentine belt (see Tech Online for procedure)
Remove the serpentine belt tensioner. See Diagram 3
Diagram 1: Engine as viewed from the rear
The oil cooler is behind all this, which is at the rear-side of the engine
Coolant hoses to the oil cooler and EGR cooler
EGR cooler
Remove the RH front wheel and inner guard cover.
Remove the B+ cable and field wiring from the alternator. Remove the upper and lower mounting bolts from the alternator. See Diagram 2
Remove the alternator.
Disconnect the coolant hoses to the two fittings on the oil cooler. See Diagram 7
Remove the five short Torx head bolts and the three long hex head bolts from the oil cooler. See Diagram 5
Remove the oil cooler.
Assembly
Clean the sealing surface on the bracket assembly which is still attached to the block. Inspect for corrosion and damage and replace it if required.
NOTE: If bracket assembly replacement is required, fit new rubber gaskets and seals as required then tighten the bolts to 25Nm (there is no stated sequence). See Diagram 6
Fit a new seal to the oil cooler assembly and fit it to the bracket assembly and tighten the bolts to 25Nm (there is no stated sequence). See Diagram 5
Reattach the coolant hoses to the cooler fittings, ensuring the clamps are in their original positions.
Refit the alternator and tighten the bolts to 58Nm. See Diagram 2
Reconnect the field connectors and the B+ harness and tighten the nut to 25Nm.
Refit the serpentine belt tensioner and tighten the bolt to 58Nm. See Diagram 3
Refit serpentine belt (see Tech Online for belt routing).
Reassemble all other parts in reverse order.
Drain and refill oil if contaminated with coolant. Flush then refill the cooling system with coolant and pressure test for leaks. Run engine until the thermostat opens then recheck the coolant level.
Diagram 2: Alternator view
Diagram 3: Serpentine belt tensioner
Alternator mounting bolts 58Nm
Remove this bolt to remove the serpentine belt tensioner. Tighten to 58Nm
Diagram 4: View with the alternator removed
With the alternator removed you have reasonable access to the oil cooler
Test drive, then recheck oil and coolant levels. Check for leaks and repair as required. Check for fault codes and clear or repair as required.
For more information on the Holden Captiva, log on to VACC MotorTech or call the VACC TechAdvisory Service.
Thank you to Shane from Shane’s Autocare in Nhill and the team from Get Wrecked 4x4 for their help with this article.
The oil cooler can be replaced separately from the bracket assembly. However, if its removal is required, ensure you replace the gaskets and tighten the bolts to 25Nm There is no stated tightening sequence
An alternative way to remove the oil cooler is to leave the alternator in place and remove the starter motor, which will give you access as shown in the picture to the right
This is only an option if the vehicle is 2WD, because if it is 4WD the transfer case needs removal to gain access to the starter (see Tech Talk July 2017 page 4364)
MotorTech
Diagram 5: Oil cooler view
Diagram 7: Alternative method: 2WD only
View with the starter motor removed
Coolant hoses to the oil cooler
Long bolts
Short bolts
Diagram 6: Oil cooler, filter and alternator bracket assembly
Rear view
Front view
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03 9829 1152 ourautoistore.com.au
Fine Tuning Automotive Mental Health (FTAMH)
Funded by the WorkSafe WorkWell Mental Health Improvement Fund, VACC has developed FTAMH. The program provides free information, resources and practical measures to help automotive business owners identify and prevent mental health issues in the workplace. finetune.vacc.com.au
EFTPOS Facility
Commonwealth Bank could provide the expertise, insights, technology and financial solutions to help your business move forward. Our Commonwealth Bank Business Banking Specialists can guide you through available business solutions to suit your business needs.
03 9829 1152 vacc.com.au
Training & Education
Members can access automotive industryspecific training programs in business management, industrial relations/human resource management, technical and OHS & Environment. Skills Development Centre also facilitates short courses, online programs and diploma and degree qualifications. 03 9829 1130 info@vaccsdc.com.au vaccsdc.com.au
Environmental Advice
VACC members can benefit from environmental compliance advice, briefings, training and on-site assessments. Green Stamp is an accreditation program that recognises and promotes businesses which have implemented sound environmental practices.
VACC and TACC members receive discounted rates and benefits, including trace and track capabilities, one number to call, one easy-to-understand invoice, and online job quoting, booking and tracking. Contact VACC for an application form.
03 9829 1152 vacc.com.au
OurAuto Diagnostic Tool
Easy-to-use diagnostic tool with class leading automotive fault technology, including seamless integration with VACC MotorTech, providing auto-detection, top range health reports and monthly updates. The Diagnostic Tool is available on a convenient monthly subscription plan. 1300 687 288 ourautoscantool.com.au
Superannuation
Spirit Super is a multi-industry super fund with over 321,000 members and $26 billion in funds under management. We work hard for members through low fees, excellent service, and a focus on competitive investment returns.
1800 005 166 spiritsuper.com.au
Zembl
Zembl is the leading energy price comparison service for Australian businesses. VACC and TACC members have access to a free energy bill review. Then Zembl works with leading retailers to find a competitive deal.
1300 915 162
https://zembl-dev.webflow.io/ partner/vacc
JobFinder Services
VACC Helpline provides a free job advertising service on the JobFinder website. VACC and TACC member businesses can advertise qualified and apprenticeship vacancies. All enquiries go direct to you for screening. 03 9829 1133 autoadvice@vacc.com.au | vacc.com.au
OH&S Services
Members can access consultation and advice on OHS issues, including incident management, policies, workers’ compensation and more. OHS specialists provide workplace assessments and training, and administer the HazCheck management system.
03 9829 1138 ohs@vacc.com.au vacc.com.au
Officeworks
Officeworks is here to support VACC and TACC members with over 40,000 products, business services and specialist advice. Members can sign up for an Officeworks 30 Day Business Account, and enjoy exclusive business pricing and flexible delivery options. officeworks.com.au/campaigns/vacc
Apprentice Support
VACC Helpline provides apprentices and businesses a free automotive apprenticeship sign-up and advisory service to assist all parties at any time. With years of experience and knowledge, it’s well worth a quick phone call to put you in the right direction.
03 9829 1133 autoadvice@vacc.com.au | vacc.com.au
THE GRILLE
Podcast for automotive professionals and motoring enthusiasts. Join Greg Rust, Shane Jacobson and VACC CEO, Geoff Gwilym for industry news, a special guest from the automotive world and plenty of laughs along the way. info@thegrillepodcast.com.au thegrillepodcast.com.au
Auto Workplace Assist
A convenient go-to solution for supporting automotive workplace compliance needs. Health and Safety can be a complex, high risk and costly area for workplaces. AWA offers readymade, industry-specific compliance products, so that business owners can get on with the job at hand.
1300 585 136 autoworkplaceassist.com.au
TACC
Founded in 1930, TACC serves the automotive industry in Tasmania and amalgamated with VACC in 1999. TACC members gain access to all of the same products and services as VACC members, however TACC also has a number of additional services for its membership.
03 6278 1611 | tacc.com.au
Insurance
Automotive business owners can access competitive solutions through OurAuto Insurance. Specifically designed to meet to the unique risk profile of the automotive industry, OurAuto Insurance can help your business access the best cover at an affordable rate.
1300 441 474
contact@ourautoinsurance.com.au
Graphic Design
VACC’S Marketing department can assist members with their graphic design requirements at a subsidised rate. Services include business cards, logo re-designs, corporate image overhauls, brochures and advertisements.
03 9829 1189 creativeservices@vacc.com.au
Workplace Update
All VACC and TACC members receive Workplace Update on a monthly basis via email, with issues also available on the VACC website. The publication provides the latest news and information regarding workplace and industrial relations, OHS and environment, business obligations and training opportunities.
03 9829 1123 vacc.com.au
Advertising
Members receive Australasian Automotive magazine as a member benefit and have access to preferential advertising rates. The VACC marketing department can help members by designing advertisements at a heavily subsidised rate.
John Eaton 0407 344 433 jeaton@ourauto.com.au
Tech Talk
Included in VACC/TACC membership is a subscription to the Tech Talk publication, the premier technical publication of the VACC Technical Services Department since 1986. The journal is printed 11 times a year, while a backcatalogue of articles is available as part of the Tech Online website.
03 9829 1292 vacc.com.au
Test and Tagging
ETCS offers TACC members electrical service state-wide, including installation, testing and tagging, and assisting with OHS requirements. TACC members can access special member rates.
1300 724 001 | etcs.com.au
TACC Apprenticeships
TACC takes the hassle out of hiring trainees and apprentices, as businesses are matched with high quality candidates who meet strict selection criteria. TACC also looks after all administration aspects of the apprenticeship, including visits by Field Officers.
03 6278 1611 | tacc.com.au
Roadside Help
TACC members who want to reward their loyal customers can do so though TACC’s Roadside Help program. Members purchase vouchers to give to customers, which customers can use for free help for a flat battery, tyre change, fuel or a tow back to the member’s business.
03 6278 1611 tacc.com.au
TACC Accreditation
TACC Accredited Repairers are promoted to the community as a group of professional businesses who deliver high quality repairs and services. Participating members enter into a contract with TACC to deliver a more professional level of service. TACC promotes these members.
03 6278 1611 tacc.com.au
E.T.C.S.
Electrical Testing & Compliance Service
Liability & Customer Vehicle Risks
• Damage due to faulty workmanship
• Negligence by contractor/subcontractor
• Driving risks
• Authorised vehicle inspections
Management Risks
• Breaches in employment
• Unfair or wrongful dismissal
• Harassment or discrimination
• Wrongful acts as an owner/director
• Statutory fines & penalties e.g. OH&S breaches
Property Risks
• Business interruption
• Fire & storm
• Machinery breakdown
• Theft & money
• Glass
Cyber Risk
• Data breaches
• Cyber attacks
• Contingent business interruption
With over 20-plus years of experience, OurAuto Insurance are proud to be trusted by automotive businesses across Australia. Contact us today to arrange a hassle-free insurance quote for your business.
The auto industry podcast brought to you by the best in the business
Join journalist Greg Rust, motoring enthusiast Shane Jacobson, and industry authority Geoff Gwilym as we dig deep into automotive. There’ll be news and views, industry insights and trends, special guests, and plenty of laughs along the way.
