Get your tickets for the greatest automotive evening of the year: the Automotive Industry Awards and President’s Gala Dinner
08 AUTO TRAINING
Since 1985, VACC has helped mentor hundreds of new apprentices into skilled jobs and employment in Victoria
10 GOT DISPUTES?
Disputes with customers can be time consuming and costly, We look at practical ways to resolve disputes
12 TYRE WASTE
Critical industrial waste collection delays affect many automotive retailing businesses. VACC is committed to finding solutions
14 TACC VALUE
Unlocking the value proposition: How TACC supports Tasmanian businesses beyond lobbying
16 FREER PANELS
VACC CEO Geoff Gwilym, and Area Manager Michael Kelly met with body repair member Trent Freer to discuss insurers
20 DRIVING CHANGE
From cars to trucks: Ed Jones’ journey in the automotive sector and his vision for Tasmania’s heavy vehicle industry
32 BIG CHAIR
Ian Lavery, Managing Director of DENSO gives us an update on their long-term commitment to the future of EVs
38 BIG FAT ZERO
Examining the long road to reach net zero and the government’s biggest challenge: charging infrastructure
44 IN THE KNOW
Getting Technical this issue addresses Toyota HiAce 200 series rear wheel bearing replacement
50 SERVICE DIRECTORY
Find everything from the latest products to the best business services you need all in one place
52 BUSINESS INDEX
Take advantage of VACC and TACC corporate partnerships and services, and drive your business forward
54 THE LAST WORD
From our archives, a page from The Australian Automobile Trade Journal published 100 years ago in April 1924.
APPLICATIONS have now closed for the 2024 Automotive Industry Awards.
Created to acknowledge and reward the best automotive businesses and personnel in Victoria and Tasmania, we had a record number of entries this year.
The only thing left to do now is get your tickets for the greatest automotive evening of the year: the Automotive Industry Awards and President’s Gala Dinner at Crown Palladium on 29 June, where we’ll reveal the best in the business at the industry night of nights.
On the star-packed evening, we will reveal the Automotive Industry Awards winners, and celebrate the next generation: VACC and TACC Automotive Apprenticeships’ award winners and graduating apprentices.
VACC President Chris Hummer will present two special awards, the President’s Award Employer of the Year, and the President’s Award Employee of the Year. These awards highlight people, the most valuable asset in any business.
We look forward to a big night when we’ll celebrate excellence in automotive and have great fun along the way.
Chamber ambassador Shane Jacobson will host the event, and the gala night will be full of entertainment, gourmet food and drinks, magic, music and dancing.
The Voices Supergroup returns, providing ample time for attendees to let their hair down, and Grand Illusionist Cosentino will keep the audience glued to their seats with his unique blend of underhanded skills and nerve-racking escapes.
Special thanks to major event partner DENSO for its support, as well as the AIA category sponsors Podium, Commonwealth Bank,
DAVID DOWSEY
GET IN FAST
OurAuto Insurance, Zembl, Mining and Automotive Skills Alliance and Bendix.
Sponsors on the apprentice front include Spirit Super, Mas National and SP Tools.
Fingers crossed for all VACC and TACC member entrants and well done.
For more information about the awards, key dates and tickets, go to automotiveindustryawards.com.au
The 2024 Automotive Industry Awards categories are:
• 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
Large Automotive Business – Tasmania
MANAGING
David Dowsey
03 9829 1247
editor@australasianautomotive.com
SUB-EDITOR
Andrew Molloy
DESIGNERS
Faith Perrett
Gavin van Langenberg 03 9829 1189 creative@australasianautomotive.com
CONTRIBUTORS
John Caine, Kathy Zdravevski, Geoff Gwilym, Shane Jacobson, Rod Lofts, Michael McKenna, Bruce McIntosh, Paul Tuzson
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
2024 Automotive Industry Awards
Celebrating VACC & TACC’ s
Tickets on sale now
Don’t miss your chance to celebrate excellence in automotive.
The gala night will be full of entertainment, gourmet food and drinks, magic, music and dancing.
Award winners will be revealed at the prestigious 2024 President’s Gala Dinner held at Palladium at Crown Melbourne on Saturday 29 June 2024.
The next generation, VACC and TACC Automotive Apprenticeships’ award winners and graduating apprentices, will also be celebrated on the night.
Award Categories
• 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 President’s Awards
• Employee of the Year
• Employer of the Year
Key dates
AIA applications close: Friday 5 April 2024
Ticket sales close: Friday 31 May 2024
Finalists notified from: Friday 26 April 2024
President’s Gala Dinner and AIA winners presentation: Saturday 29 June 2024
Master of Ceremonies
Chamber Ambassador and automotive nut Shane Jacobson will be your host. An immediately identifiable and well-loved actor and presenter.
Entertainment
Rocking the night will be the Voices Super Group – Taxiride's Jason Singh, The Eurogliders Grace Knight and Bernie Lynch, Rob Mills and the Voices Supergroup will deliver you an event to remember.
Cosentino - Award winning Illusionist, best-selling author, Guinness World Record holder and TV show host with over 300 million viewers worldwide. You’re in for a night of illusions, magic, escapes and humour.
Award applications and tickets
VACC is a huge advocate for training in the auto industry and places over 500 of our own apprentices into VACC member workshops to give them a great start in the industry.
It’s a tremendous contribution from VACC and its member businesses, and something that ultimately provides skilled technicians right across the industry.
People often ask why VACC does this, because it’s not core business for an association.
This is a conscious decision by VACC to get involved with apprenticeship training and to mentor hundreds of new apprentices into skilled jobs and employment each year.
We have been doing this since 1985 and have supported thousands of apprentices and new technicians to get into the industry.
It’s a collaboration between VACC and its members’ workshops, but all Victorians reap the benefits.
THE SKILLS CHALLENGE
Afterall, without skilled labour, who will maintain Victoria’s 5.2-million vehicle fleet so people can get around?
Who will fix the scooters that deliver thousands of meals every day?
Who will service emergency services vehicles that keep people safe and alive?
Being a VACC member helps the association deliver on this critical skills initiative.
Even for workshops that don’t employ an apprentice, being part of the association helps us with this important task.
Automotive business owners who need apprentices should join VACC. They will be part of something bigger and reap the benefits, too.
Want to hear more from VACC CEO Geoff Gwilym? Read his weekly column in The Herald Sun.
DISPUTES or disagreements in the motor industry are generally about the quality of product, service/ labour, or the price charged. They can be between retail customers or business suppliers.
It can take up considerable time, effort and money that would be better used to operate, manage, or grow your business. It is preferable to resolve the dispute as cost-effectively and with as little damage to the relationship as possible.
There are practical ways to resolve disputes. Often direct discussion and negotiation between the parties is sufficient. Disputes of a more complex nature may need to be resolved using a more formal process. Types of disputes
The approach required to resolve disputes will vary according to the nature of the product or service provided. Generally, disputes in this industry involve one of the following:
• Contract of sale of new or used motor vehicle
JOHN CAINE RESOLVING DISPUTES
Warranty obligations relating to sale of motor vehicle
Service or repairs
• Sale of new parts
Sale of used parts.
Steps for resolving disputes
It is useful to document the relevant details of the dispute in chronological order.
This means writing down all dates, times, product or service details, summary of discussions, promises or verbal undertakings given. There may be multiple areas of disagreement. If this is the case, separate them. It may be possible to resolve the minor issues allowing you to focus on major ones.
Solutions or actions required will often become visible once the rights and obligations are set out on paper. Collect all documents relevant to the issue. For example: contracts, written warranties, invoices and any photographs.
Take notes as to how each party would like the dispute resolved. Be clear about the solution being sought by you or the other party. Solutions could include compensation, refund, repair, replacement, an apology, behavioural change or a combination of these.
You might ask the other party about what is important to them and what remedy they are seeking.
Remember that each party has a common interest in resolving the matter quickly, fairly and cheaply. A direct exchange of information may present a solution that is acceptable to both parties.
Present your case calmly and show respect for the other party’s point of view. Animosity from a badly managed dispute can cause long-term adverse effects on your business.
You should be prepared to compromise and give a little when and if the other party is prepared to do the same.
IMOGEN REID
THE PROBLEM WITH WASTE TYRES
PRESENTLY, many Victorian automotive retailing businesses are facing critical industrial waste collection delays due to ongoing global shipping issues, labour shortages, the export ban on whole and baled tyres, and the lack of local markets able to use tyre derived products. According to Tyre Stewardship Australia (TSA), Australians generated 459,00 tonnes of waste tyres. It is estimated that approximately 33 per cent were exported for energy recovery, while 53 per cent were sent to landfill. In 2024, a much larger problem is facing industry and community due to a ban on the unrestricted export of tyres, which became law in 2021. As it stands, Victoria’s circular economy plan is failing to keep up with demand and needs urgent attention.
VACC members who retail new and used vehicle tyres advise VACC that the cost blowout for waste tyre collection and disposal has ballooned to extreme levels since December 2021. This cost burden to industry is unsustainable. It will be consumers who ultimately incur the financial cost, and community who will be outraged at the potential threat to our precious environment.
Industry is committed to meeting its environmental obligations. However, they face extreme difficulty accessing waste tyre collection services by a TSA accredited or approved tyre collector. This lack of access often leaves the retailer with stockpiles of waste tyres, at times above the regulated limits. Consumers, or rogue tyre collector/retailers, make whatever decision they see as suiting their own purposes and often dump tyres in public parklands or by the roadside. According to Sustainability Victoria, approximately 1.5 million passenger car tyres are unaccounted for in Victoria each year– potentially illegally dumped or stockpiled.
Victoria has experienced various levels of illegal dumping in regional and metropolitan areas, further confirmed in dialogue between VACC and the Municipal Association of Victoria in 2023. There is an extremely high likelihood that rogue operators have re-entered the market and begun illegally stockpiling waste tyres, leading to public health risks such as the fire at the Broadmeadows tyre recycling facility in 2016, which saw more than 100,000 tyres burnt and nearby residents and businesses evacuated. While the
Tyre Stewardship Scheme remains voluntary, the very real concern for community, many Municipal Councils, Environmental Protection Agencies, law enforcement agencies, and industry is that waste tyres will continue to be a toxic threat to the environment and a drain on resources.
VACC recommends that the 20242025 Victorian State Budget allocate $500,000 from Victoria - Recycling Modernisation Fund for an industry supported, and government led, interagency taskforce that will examine exactly why stockpiling is occurring, who is responsible and how it can be overcome. Furthermore, the taskforce should use the legislated parameters of the new EPA Environmental Protection Act 2017 (Vic) that came into effect on 1 July 2021, while working with industry and community to solve this issue.
I would like to acknowledge the tireless work undertaken by IPA Mr John Khoury and the broader Victorian Tyre Dealers Association (VTDA) committee in their pursuit of solutions to this complex and challenging environmental issue.
EVEN though TACC has been the automotive peak body in Tasmania for over 90 years, people still ask me what’s the value proposition to TACC members?
It’s a great question and one which TACC uses to measure its value to members and ensure we’re delivering services that businesses really need. Associations don’t only lobby on behalf of their members.
That’s a key part of an association’s role, but today members want and expect more than that.
For example, TACC has a large workplace relations team with dedicated industrial relations and occupational health, safety and environment professionals that assist members with the full range of employment and safety-related workplace issues. It’s important to note that many of these services are provided at no cost to members as part of their membership subscription with the remainder provided at subsidised rates.
BRUCE MCINTOSH TACC MEMBERSHIP
TACC also has a range of commercial business alliances that can put money back into members’ pockets, sometimes thousands of dollars a year.
There is training provision and direct member engagement that picks up key issues that inform TACC’s policy advocacy.
There’s much more, but what it comes down to is protecting TACC members through professional service provision and helping them run better businesses by delivering the right information at the right time. I’m sure our members sleep better knowing TACC is there to protect them and help grow their business.
If you’re a TACC member, thank you for supporting your peak body and making a difference in the lives of Tasmanians. If you’re not a member, go to tacc.com.au and be part of something bigger. Want to hear more from Bruce? Read his weekly column in the Mercury.
Podium is powering the Australian automotive industry into the future. Australia’s leading text messaging platform is helping over 100,000 businesses communicate with customers, schedule services and collect payments – all through the power of two-way text.
"Podium is so good that we have cancelled our traditional eftpos machines. I’ve never been more impressed with a software provider, and can’t wait to see what features Podium releases next."
Justin
Walker, General Manager, Grant Walker Parts
VACC visits Freer's panels
VACC CEO Geoff Gwilym, and Area Manager Michael Kelly met with body repair member Trent Freer in Mooroopna.
There was lots of discussion on the situation for body repairers, and the constant dialogue with insurers and the shared view that ultimately, a more balanced position between insurers and body repairers needed to be achieved.
Geoff outlined the work being undertaken by VACC and the national body, the Motor Trades Association
of Australia (MTAA), that includes a review of the insurer/body repairer code and that this was being led locally by VACC’s Kathy Zdravevski.
Trent also raised the issue of attracting apprentices into the industry with an understanding that VACC and its body repair members have a collective task of attracting and retaining the next generation of body repairers to meet the demands of industry of the future.
Trent’s shop has 16 staff, two vehicle paint apprentices and one
panel beating apprentice, but he said attracting local talent was difficult and word of mouth was still the best way to find to new apprentices and staff.
Trent is the third generation of Freer’s to work in the shop in Mooroopna, standing 70 years in the same location, and expanding the workshop as the business developed.
Geoff said VACC would continue to fight for the best possible position for body repairers and if that meant going head-to-head with insurers, Geoff was happy to do this all day every day.
2024 APRAA Conference
Driving Innovation: The road to tomorrow
THE Auto Parts Recyclers Association of Australia and the Motor Trades Association of Australia, in collaboration with Auto PARTnered Solutions, will host an automotive recyclers conference this year.
When: Thursday 29, Friday 30 and Saturday 31 August 2024
Where: QT, Gold Coast
This conference will assemble an impressive lineup of world-renowned industry experts and influencers.
Prepare for two days filled with sessions and insights into sales, production, and operations, plus invaluable networking opportunities with the foremost auto recyclers from across the globe.
The organisers invite members and their teams to attend this transformative event. So, save the date, then join colleagues and friends to unlock your full potential and spearhead the future of excellence in auto parts recycling. Visit autopartneredsolutions.com
Enjoy easy, secure and reliable card payments with Commonwealth Bank’s Smart
range of solutions.
Preferential Merchant Service Fee of 0.24%1 available to members of VACC.
Wherever and whenever you trade, Commonwealth Bank brings together more of the solutions you need, giving you more control, time and security. With 24/7 Australian call centre support, local business specialists nationwide and a range of flexible business solutions, Commonwealth Bank is available to help you focus on what really matters, your business.
Compare your merchant service today.
With Commonwealth Bank, VACC members can receive special discounts on our Smart terminal range of EFTPOS solutions.
We can also offer a customised comparison2 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 1300 013 341 or email membership@vacc.com.au and they’ll put you in touch with a Commonwealth Bank Relationship Manager..
Things you should know: As this advice has been prepared without considering your objectives, financial situation or needs, you should, before acting on the information, consider its appropriateness to your circumstances.
10.24% is the merchant service fee rate which does not include the Mastercard and Visa Interchange rates. Interchange fees are set by card schemes such as Mastercard and Visa for processing transactions between Commonwealth Bank and the cardholder’s bank and is subject to change, therefore, savings may vary.
2Commonwealth Bank merchant cost comparison is available to compare all fee types & competitors. Different assumptions and estimates could result in materially different results. On this basis, no representation or warranty, expressed or implied, is made as to the accuracy of the information or projections contained in this example. Fees, charges, terms and conditions apply. Please view our Merchant Agreement, Financial Services Guide and Operator and User Guides at commbank.com.au/ merchantsupport
VACC may receive a referral fee from Commonwealth Bank for each
and
referral (excludes existing customers) on
TOUGHER BIKIE THAN A KANGAROO
IN A BAR FIGHT
EXEDY Safari Tuff clutch range is precision engineered to deliver cutting-edge performance in the most demanding driving conditions.
Good conditions key to staff retention
OWNER of heavy vehicle specialist, FRM in Launceston, Ed Jones has worked in the automotive industry for 18 years, predominantly in the passenger car sector. He started at 21 selling used cars and new Suzukis, selling a car on his first day at work, which caused him to fall in love with the trade.
He later moved to north Queensland, working at Pacific Toyota before returning to Tasmania in 2012.
Ed became a director of the Local Motor Group but decided he wanted a change. He wished to remain in the state, however, because of lifestyle and family reasons. There aren’t many privately owned passenger car franchises available in Tasmania, though, so Ed decided to get involved in the heavy vehicle industry.
“There’s less disruption in the truck
space than in cars,” said Ed. “From a technology point of view, with the electrification of passenger cars and the carbon tax, trucks don’t seem to be as affected today because the technology isn’t ready to come into the market to support what trucks need to do. Because of the importance of freight and haulage, I don’t think things will change quickly.”
Ed saw the potential for growth immediately.
“My early observations are that there are opportunities in the truck space, particularly in after-sales retention. We’re trying to keep existing business while attracting new customers.
“FRM had been owned for 40 years by four directors but, in the last couple of years, had run out of energy, so I needed to spend money on tools and air conditioning and lights and
training for staff; all the basics. I want the people in the workshop to have all the things they need to do their job. That’s my responsibility.”
When asked if he had issues attracting and retaining staff, Ed said the business “was pretty good”.
It’s no surprise that good businesses often have less problems with staff turn-over. It begs the question: Why would staff leave to go elsewhere if they worked for a great business in the first place?
“From a staff perspective, we want to look after the people we’ve got, so they go and tell other people a positive story about working here,” said Ed. He has further plans to improve conditions.
“We’re working on designing a nine-day fortnight for our staff. That’s an example of an initiative
Ed Jones (centre) looks after his apprentices, Joe, Brodie and Sebastien (below right) and it's paying off
where we are moving with the times. We’re also looking at five weeks’ annual leave, too.”
Ed’s aim is to make FRM the most attractive place to work in Tasmania’s heavy vehicle sector.
“It’s never been easy to employ but, especially in regional areas, the best staff come from word of mouth,” said Ed. “So, to start with, you must have a nice place to work and then the staff will help promote the business and build the team. If there is less turnover, you need to employ less often and it shows that you probably run a good business.
“You can sit and say that it’s difficult to get staff, or you can create a good environment for staff that will attract people,” said Ed. Ed has three TACC apprentices and things are working out well.
Thirty-year-old Sebastien recently set a national benchmark for movement efficiency and time taken to complete a basic service; all presided over by a Hino Skills Trainer.
First year apprentice, Brodie has been with FRM for three months.
“I’m really enjoying it,” he said. “Trucks are good to work on. I do services, wheels, brakes, suspension… I’m always doing something different.”
Joe is also a first year heavy vehicle apprentice. Unusually, he is already a qualified light vehicle mechanic, but was drawn to the trucking industry because “there is a better working environment and a bit more money” and he’s happy with his new boss. Ed’s happy too.
“From an apprentice perspective, TACC is really good,” he said. “It gives our apprentices structure and gives them a good platform for feedback. It helps us with training and accountability.”
His partnership with TACC works well.
“There’s the interest from TACC to check in on how the apprentices are going. This, along with our interest in our people, adds a second layer. The apprentices feel there’s more interest in them and their outcomes,” said Ed.
FRM has three sites: Devonport, Hobart and Launceston, with 45 staff combined; 30 in the workshops.
Known from the start as FRM, Ed will soon re-brand his business to Tas Trucks.
His customers are small-to-medium rigid truck owners; from fleet owners to small business operators, such as plumbers, builders and landscapers.
For Ed, the customer is king.
“The average ownership cycle for one of our trucks is seven years and they are serviced three of four times per year, so that gives us between 21 and 28 touchpoints with the customer before they re-purchase. That’s why we must get the service and aftersales piece right, so the customer stays within the business.”
To ensure this, Ed offers after hours service, along with remote and breakdown offerings.
Ed Jones concentrates on looking after his staff and customers. Doing the basics well is still the best formula for success in town.
Bendix diagnoses common braking issues
BRAKING systems are complex and feature many moving parts; they also operate under demanding conditions such as extreme heat and cold. Throw in challenging road surfaces and dirt and debris, and it’s no wonder that braking faults can appear from time to time especially if maintenance is neglected. Some faults are easier to identify than others; here are several of the most common.
Noise related
Given the various moving parts within the braking system, and that components such as brake pads and brake shoes make contact with rotors and brake drums with force, it’s difficult to completely eliminate noise, but noise should not be excessive or overwhelming.
Squealing brakes are often caused when friction materials (brake pads or brake shoes) contact the disc rotor/caliper or brake shoe causing vibration. The noise could be caused by poorly lubricated components including caliper hardware such as pins, slides and bushes; brake pad backing plates; brake shims and other metal to metal or metal to rubber contact paints. This noise may also indicate a scored rotor surface or that the friction material is badly worn, with metal-on-metal contact occurring.
Changes in pedal feel
Certain braking system issues can be felt by the driver at the brake pedal. A soft or spongy pedal can mean that there’s air in the brake lines or that the brake fluid is very low. Other causes could include a damaged or leaking brake booster or brake master cylinder, meaning it won’t maintain sufficient hydraulic pressure in the system. If the brake pedal is difficult to push, this could be caused by a malfunctioning brake booster. The brake booster multiplies the force at the brake pedal to something much greater by the time the pads and shoes bite at the rotors or drums, so if not working correctly the driver will need to push on the brake pedal much harder.
Vibrations or pulses through the brake pedal are other symptoms of an issue. Pulsation is normally caused by Disc Thickness Variation (DTV) or warped rotors. DTV can occur if disc brake
rotors haven’t been installed correctly – perhaps because of uneven lug nut torque, damaged studs or debris between the hub and rotor – and lateral rotor run-out can occur. This causes side to side movement as the rotor rotates rather than the rotors circulating through an even plane. Warping occurs where the rotor surface becomes uneven and is often caused by excessive heat in the brakes. Through regular high-load braking situations, the rotors can become glazed from the brake pad materials rubbing off on the rotor at extreme temperatures. Extreme temperatures changes can also cause warping, for example heavy braking followed by submersion in cold water, such as might be experienced off road when four-wheel driving. Reduced braking performance
A noticeable reduction in braking performance should be taken very seriously and addressed immediately. When in correct working order, brakes should quickly and efficiently slow the vehicle up in a straight line with minimal effort.
A vehicle that pulls to one side under braking normally signals an imbalance within the system, and could be caused by a sticking brake caliper. The root problem may link back to poor caliper slide pin lubrication or corrosion/debris at the caliper piston(s) which causes the caliper to drag.
Needing a longer stopping distance can also be caused by worn disc brake pads or brake shoes – the thinner the friction material becomes, the less effective braking becomes.
In certain conditions and driving environments brakes can also experience a temporary reduction in performance, this is known as brake fade. Brake fade is caused by the added heat that’s generated from repeated or sustained braking, or braking under heavy loads. When the heat doesn’t effectively dissipate, the braking becomes compromised. Drivers can minimise brake fade by ensuring the braking system is in good order; upgrading some components should also be considered if the vehicle is regularly used in situations where
the brakes are worked hard. They can also adapt their driving style so that less pressure is placed on the brakes. Another factor than can affect performance is old brake fluid. Over time brake fluid can absorb small amounts of moisture through imperfect seals, microscopic holes in rubber hoses or even if the cap is left off the brake fluid reservoir for too long. This moisture can gradually mix with the brake fluid increasing its water content and impacting how effectively pressure applied at the brake pedal is maintained all the way to the brake calipers or drums, it can also lead to a lower boiling point for the fluid. Hot temperatures amplify the problem, as do demanding driving conditions, such as when towing. Call Bendix on 1800 819 666 or visit bendix.com.au
Top 10 challenges for dealers and OEMs in 2024
AS the Australian motor industry gears up for 2024 (after a record breaking 2023), dealerships are facing an array of challenges that demand strategic foresight and adaptability. At Pitcher Partners, we have been delving into the top 10 challenges that are shaping the landscape and here we explore how industry players can navigate through these tumultuous times.
1. Margin compression has returned, and unprepared dealerships will experience significant financial strain
For many brands, the order books are lean, and dealers have already chewed through them in CY23, setting a record in sales volumes (read deliveries) of 1.2 million units. The concerning resurgence of margin compression is exacerbated by the increasing supply of cars from OEM brands and waning customer demand due to rising prices and finance rates.
2. Strategic stock management will be back ‘en-vogue’
We are already back to overstocking dilemmas in new cars for some brands in Australia. The importance of managing stock levels is resurging in 2024. Dealerships will need to implement manual release for floor planning of new vehicle stock (where they can) and regain control of ordering. This applies to new cars and the used car market. Dealers will need to buy and sell used cars in the same market by optimising stock turnover to 30 days’ supply maximum (12 stock turns per year). Buying right for used cars has always been the key to profit and emphasises the need for pricing and stock management tools like AutoGrab to make sure you get it right.
3. Used cars valuations will decline further
We are in a falling used car market and dealers’ customers will be returning to the dealership with vehicles purchased during the COVID years at inflated values. The negative equity position of these customers will be significant and the temptation to over-trade to get the new car sale will be high. Dealers need to separate valuations from the new car department. The risk of leaving trade in valuations with the new car department could be fatal by overloading the used car department with overvalued stock.
4. Cost structure re-evaluation
With some dealerships already facing monthly losses, a critical look at cost structures is imperative.
We have noted that new car break-even points in recent years have moved to more than $3,000 per unit. Preparing for the possibility of normalised grosses in the realm of $2,000 per unit ($3k less than 2023 levels), means every car will be sold at a loss. Dealer groups must make tough decisions now to ensure resilience in the face of tougher economic headwinds ahead in 2024.
5. Building your own brand loyalty (retention)
Dealer groups should focus on building their own brand and cultivating customer loyalty. Owning the customer relationship becomes paramount for sustained success. Late cycle retail buyers will be hard to find, trade-in values will be high, family budgets are stretched and securing financing to purchase will be difficult. Dealers make purchasing easier, so customers will keep returning. Keep this as your principal focus, invest in your complete customer journey (online and physical) and learn to manage your customers individually through the life cycle.
6. Cybersecurity vulnerabilities: the importance of being prepared
Cyber-attacks are emerging as a major threat in 2024 and dealerships are at risk as high-value targets. Dealerships should prioritise cybersecurity measures to safeguard sensitive information and maintain operational continuity.
7. The Rise and Rise of Chinese-built vehicles
Chinese-built vehicles are poised to challenge their Japanese counterparts for market supremacy in volume (16.7 per cent) in 2024, marking a significant shift since they constituted only 3.3 per cent of the market in 2020. Chinesebuilt cars made up nearly one in six new vehicles sold in CY23, totalling 193,433 (per VFACTS). This trend aligns with the growing popularity of electric vehicles (EVs), introducing a transformative dynamic to the industry. But slowing local demand in China and overcapacity at their OEMs after years of state-
directed growth means the Chinese manufacturers are looking to overseas markets for their product. Exports surged in 2023, as we have seen in Australia, and we expect this to continue.
8. Electric vehicle revolution
Complementing the above, China’s cost advantage and proliferation of brands and product will only increase the affordability and variety of electric vehicles which will continue to drive their popularity. While Australia should expect to face a similar EV adoption plateau as the USA, the fact is that EVs are undeniably the future.
9. Fuel and emissions standards
The Australian government’s commitment to announcing a fuel emissions target by the end of 2023 has come and gone without an announcement. However, they have announced they are adopting Euro 6d by 2025 and we expect some announcement of a fuel and emissions standard in 2024.
If they adopt anything near the UK, Europe or the now repealed NZ models the importation and retail of many brand’s models to Australia could be uneconomical, requiring proactive adaptation and urgent industry attention.
10. Agency and direct to customer sales model adoption postponed further
Following the sharp declines in sales for Mercedes-Benz and Honda, the adoption of agency sales models is likely to slow down further.
Sales experiences and pricing challenges present significant hurdles, dissuading other brands and new entrants to Australia from considering a switch from their current franchise distribution model. Dealer groups that proactively navigate these challenges and invest in building their brand and resilience will reap the benefits once the market stabilises. Despite the current market turbulence and evolving drivetrain disruptions, the transition presents opportunities for those prepared to face the economic headwinds and emerge stronger in a steady-state market.
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IAN LAVERY
MANAGING DIRECTOR DENSO
Ian Lavery is the Managing Director of DENSO in Australia, a global leader in cutting-edge automotive, mobility, agri-tech and innovative technology worldwide. A DENSO stalwart, Ian has taken the helm of Oceania operations recently after a successful 30-year career leading major development programs with companies like Toyota and General Motors. With his engineering, product design and R&D background, Ian is uniquely qualified to solve real world problems and commercialise new technologies.
DENSO was founded in Japan in 1949. Tell us about its origins.
DENSO began as Nippon Electrical Equipments Co, a department of Toyota responsible for developing locally made starters and generators to replace imports for the fledgling automakers after the war. We separated from Toyota in 1949 to become NIPPONDENSO, an independent entity, while maintaining this key partnership. After establishing its operations in Japan, our founders looked outwards to expand, and established a sales office in America, then brought manufacturing to Australia and then furthering into Asia and Europe. DENSO has since forged strong relationships with car manufacturers globally and has grown to become the Tier 1 automotive systems supplier with global sales close to $50B USD. So, whether you are on the road, in a warehouse, a farm, or a mine, know that DENSO is the quiet force behind your vehicle moving you forward. DENSO Oceania is strategically diversifying into agri-tech. Tell us more about this.
As a part of our long-term policy of ‘bringing hope for the future for our planet, society and all people’, DENSO saw a need to address climate induced food security, a real concern that will emerge in the near future. We recognised the
population growth, aging communities and uncertainty of climate change are factors that will contribute to this problem. Although DENSO is best known for its high-quality automotive parts, our unique technologies often add strong value to other industries. With our expertise in lean manufacturing, robotics and mobility solutions and a network of hundreds of highly automated and efficient manufacturing locations globally, DENSO now applies this expertise to agricultural
production to boost productivity and reduce environmental harm. We foresee a necessity to establish climateindependent cultivation environments and to build a stable yet sustainable agri production system that saves on manpower and reduces heavy work to support the global farming communities. To aid the local growers in Australia, we are bringing in high-tech horticultural solutions to enable sustainable agri production, where local farmers can
produce quality without compromising on their economic growth. This is a core part of DENSO’s global mission to make the world a better place.
EV is the future of automotive. What is DENSO doing in this space?
At its core, DENSO is a technology company, and we dedicate huge resources to research and development of new technologies. Electrification of mobility is an integral part of our business’s DNA. DENSO technologies power many of the hybrid vehicles on the road today and we continue to both refine our existing and innovate new technologies in thermal management, power electronics and propulsion that will be necessary in the next generation of hybrid, plug-in hybrid, battery electric and hydrogen fuel cell vehicles.
You recently became the Managing Director. When did you join DENSO and what roles did you have with the organisation previously?
I was very fortunate to join DENSO in Australia when we were known as Australian Automotive Air, manufacturing dealer fit air-conditioning kits for local and imported vehicles. My first role was living and working in Japan for two years designing air conditioning components for Corolla and MR2 vehicles globally. This was my opportunity to learn the DENSO culture of quality and innovation. I immersed myself in the DENSO Way, developing my engineering skills while learning values and methods that built DENSO’s reputation for the high quality products we are known for. Over the past 30 years, I’ve had the privilege of leading various functions within DENSO, spanning R&D, engineering, quality, and service. Since taking charge, I am enjoying my greatest challenge yet of
guiding our talented team as we enter a dynamic phase of rapid technology change. In your time at DENSO, what are some of the biggest achievements?
Like many others in the Australian auto industry, DENSO in Australia faced a significant challenge when local manufacturing ended in 2017. I was convinced of the talents of our Australian engineers, built up over 45 years of independent work on Australian vehicles. With the support of our management team, we developed a business plan for a unique combination of aftermarket and car-maker parts sales, combined with a research and development function for DENSO globally.
It is almost 10 years since we started our first project, an HVAC system for the American-built RVs. Since then, the Australian R&D team has been recruited to various pilot projects within the global DENSO network. I am very proud of the role we now play in developing core thermal simulation tools used to support car makers worldwide as they design their next generation vehicles. Before DENSO, what roles and studies did you undertake?
My university study was a bachelor’s degree in mechanical engineering. My thesis simulated, then tested the use of a shock tunnel for hypersonic flight visualisation within the Martian atmosphere. Although it was a long way from automotive, this experience fuelled my curiosity and set the stage for my career in engineering innovation.
People are seen as DENSO’s most important asset. Tell us about some of the current long-serving staff members.
DENSO today is a mix of long serving team members who pass on the
history, culture, and expertise and those who have brought new skills more recently. I understand that the key to our success, in every aspect of business, depends upon our people. There are many team members that stand out, but let me tell you a bit about Matt Rizio and Gino Mascia. Both engineers, Gino and Matt were members of the machinery tool team when DENSO manufactured in Australia. With the business transformations both Matt and Gino have been able to refocus their expertise in materials handling, robots, and control systems on new areas of growth for DENSO. Gino is now leading our expansion into high tech greenhouse and agricultural technology where he can apply his deep understanding of materials handling and lean manufacturing. Matt is building our air-conditioning business as the bus industry manages the transition to an electric fleet and negotiates the complex engineering challenges of integrating the new thermal systems. The depth of technical knowledge and experience in our team members working alongside new technology specialists gives DENSO the edge and makes us stand proud. What is the future for DENSO? DENSO is excited about the future. The pace of technology continues to increase, and many disruptive new businesses are emerging. With our scale, expertise, and world first technologies, we are well placed to provide solutions to emerging societal problems. We are developing circular economy solutions that build upon our long-term commitment to remanufacture quality parts. Hydrogen has captured the spotlight in recent years as a compelling next-generation energy contender. We have new technologies in the production and use of clean hydrogen to reduce the carbon intensity of our manufacturing and industrial applications. For EVs, DENSO is working towards improving the range of EV operation in extreme heat or cold. We are even developing technology for e-VTOL autonomous aircraft, so you might see a DENSO powered electric aircraft in the future. At DENSO, we continuously aim to contribute to a better society.
What’s the best piece of advice you have received?
Smile. It is important to enjoy your role if you want others to engage and enjoy theirs.
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Electric cars will help reach net zero but much more is needed
WORDS Paul Tuzson
NET zero emissions is all the rage and despite the objections of some, humankind in general is committed to achieving it. Governments around the world, including in Australia, are acting to limit motoring freedoms in pursuit of this objective.
London has had levies for using ICE vehicles since 2003 and low emission zones since 2008. Paris, Copenhagen, Madrid and other cities around the world have similar schemes and they’re getting stricter. Some cities ban ICE vehicles altogether in some places at certain times in favor of zero or low emissions vehicles. The UN contributes to the impetus for all this and Australia is on board. Although battery electric vehicles (BEVs) have no tailpipe emissions, they are not emissions free if they derive the electricity that energises them from burning fossil fuels. In Australia, the ACT has achieved 100 per cent renewable, fossil-free electricity, so using an EV in the ACT is genuinely emissions free. The switch to renewable electricity generation leaves transport as the Territory’s largest source of greenhouse gas emissions (60 per cent) and its strategy for reducing emissions from that source is detailed in its ACT’s Zero Emissions Vehicles Strategy 2022-30 report.
The content of that report has been covered in detail since it was released in 2022 but in summary, the strategy aims for 80 to 90 per cent of all new vehicles sold by 2030 to be zero emissions (ZEV) and for phasing out the sale of light ICE vehicles by 2035. Note that if motorists still own an ICE vehicle at that time they’ll be allowed to keep driving it. This was a highly ambitious target when it was announced. So, how is the ACT doing in reaching it? Back in 2020 only one in every 688 vehicles registered was battery electric, 446 vehicles in total. In February this year, the corresponding figure was one in 48 new registrations (just over two per cent) for a total of 6,951 BEVs. Better than some would have expected. While the ACT has led national efforts to adopt ZEVs, other states and the Federal Government have created policies to move in the same direction, but more widespread adoption of EVs is complex and demanding. One of the big challenges is charging infrastructure. The Federal Government presented its National Electric Vehicle Strategy in 2023, which addresses charging infrastructure. The strategy says there were 4,900 individual chargers at 2,390 sites around the country at the time of publication.
An increase is promised, and if EV registrations are to grow at the desired rate, a large increase will be needed. The strategy talks about private sector investment in EV charging infrastructure and cites Australian-founded company Tritium as an example of this. Tritium lost money from the beginning and has now, embarrassingly, closed its Brisbane factory and transferred its manufacturing to the US in a move to “be profitable in 2024”. Companies don’t leave markets if they’re profitable and ChargePoint is another charger operation that has deserted Australia. The company started building its Australian infrastructure in 2010 and at close of business this year had just shy of 500 chargers. Clearly, demand hasn’t been strong and the promise of our pending EV revolution hasn’t been enough of a carrot for ChargePoint to continue local operations.
Building EV charging stations is expensive because of the amount of electricity they require for multiple vehicle charging, particularly fast charging. If ZEV targets are achieved, it’s staggering to think how many chargers we’ll need to service them all. Although the 2,390 charging sites in Australia seems to compare reasonably well with the 6,500 conventional petrol stations, the difference in vehicle throughput is massive. This is particularly pertinent when the number of hoses is compared with the number of plugs. If an average petrol station has 10 hoses, that’s 65,000 vehicles that it can fill
simultaneously; considerably more than the 4,900 individual charging points mentioned above. Of course the situation gets worse when charging times are compared with liquid fuel filling times. Another point that isn’t mentioned much is that charging stations will likely become crime magnets. At the lower, but still expensive, end of the crime spectrum there’s theft of power cables for the copper they contain. This already occurs. Much more serious, though, is that a charging station is an assembly point for people with enough money to buy a relatively expensive car and then stand around
The number of fires in BEVs still in service is always reported enthusiastically. These can rapidly spread to other cars parked nearby, both ICE and battery powered as happened at Sydney airport. However, a Swedish study of car fires in that country found ICE vehicles are about 20 times more likely to burn than EVs. The actual figures were one in 1,294 for non-battery vehicles and one in 26,565 for battery vehicles. Who’d have thought? Reports claim insurance for EVs is also an issue, but it’s readily available, albeit more expensively. Cover is also available for battery pack thermal runaway and associated damage.
waiting for it to charge for an hour or more. Robberies at isolated charging stations are bound to occur. Admittedly there haven’t been many such incidents but like climate change itself, the curve is likely to follow a hockey stick trajectory. Would you want your children charging their EVs at a deserted charging station late at night?
Another important detail is lithium battery recycling. The problem is not that it won’t occur, it will. The problem is that lithium batteries are extremely flammable and difficult to extinguish once burning. And, rather than simply burning, which is bad enough, sometimes they explode while on fire. This generally isn’t a problem at manufacturing facilities because new batteries are undamaged. However, batteries with all sorts of damage will be stored in bulk at recycling facilities. This is extremely dangerous as the recent unstoppable fire at a battery recycling facility in France demonstrated.
So, despite their drawbacks EVs are upon us, by force of policy and regulation no less. We’re not opposed to EVs and support their roll-out in general. However, these (and other) challenges must be addressed as part of the overall strategy for achieving net zero. While most of the rest of the world has announced targets for net zero emissions by 2050, the ACT is seeking to maintain its lead position nationally by aiming for net-zero status by 2045. Nationally, the targets are 43
per cent below 2005 levels by 2030 and full net zero by 2050. The widespread adoption of EVs won’t by any means achieve this but they are a part of the effort. Everything that reduces carbon dioxide (CO2) emissions is important and must be considered. Sometimes the term net zero is erroneously taken to mean no carbon emissions at all, but this is an impossibility. Rather, net-zero emissions means any carbon emitted into the atmosphere by humankind will be offset by removing the same amount from the atmosphere. Most people think this is a good idea in general, but some aren’t convinced.
No one doubts the beneficial effects of CO2 in our atmosphere. It has been pointed out that the Moon receives the same amount of solar radiation as the Earth but its average temperature is about minus 30 degrees Celsius as opposed to the Earth’s average of about 15 degrees. Carbon dioxide in the atmosphere is one of the strongest reasons for Earth’s relative warmth.
Now, it’s common in some circles to hear carbon dioxide referred to as a pollutant or even as a poison. This is unfortunate wording. At typical or even enormously elevated atmospheric concentrations, CO2 is neither. Rather, it makes life possible. However, it’s true that too much of it
Who doesn’t like a big petrol fueled ute? (above far left). Is something like this our future? (above left). It’s hard to see the lineage (below left and right). Lower right page, from left: Oil is a massive industry. It won’t go quietly. Conventional industry is entrenched but change is necessary. Loy Yang. Coal’s days are numbered. Total renewable generation is possible but load balancing requires state to state interconnectors
becomes toxic (in the proper sense of the word) to humans, but this has nothing to do with levels of atmospheric CO2 either natural or anthropological. Although human activities contribute to atmospheric CO2 the levels of such contributions are 100 to 1,000 times less than toxicologically dangerous levels. Danger sets in at around five to 50 per cent concentration depending on conditions and time. Again, no one disputes this. In discussions, or arguments, about anthropogenically induced climate change, gas concentrations are often referred to as parts per million (ppm) or as percentages. This can be confusing but the conversion is simple. To convert ppm to a percentage, divide by 10,000 (104). Conversely, to convert a percentage to ppm, multiply by 10,000. That’s it. So, the percentage of all greenhouse gasses in the atmosphere at the moment is around 500ppm, which is 0.05 per cent. The lowest level at which CO2 might cause health issues (five to 50 per cent) is 50,000ppm to 500,000ppm.
The fact that greenhouse gasses comprise only 0.05 per cent of the atmosphere and that the amount contributed to that total by human activity is smaller again is often referred to, sometimes sneeringly, as an argument that such low concentrations must surely be irrelevant to climate. However, that’s a false comparison because size doesn’t necessarily matter. For instance, the concentration of ozone in the atmosphere is just 0.000001 per cent (compared
with 0.05 per cent for greenhouse). That’s right, just 0.01ppm (500ppm for greenhouse). Despite this comparatively minuscule amount, no one disputes the effects of ozone. Small things can matter. Further, the argument that the amount of CO2 in the atmosphere is small is selfdefeating. If the total natural amount present is small, yet responsible for the temperature difference between the Moon and Earth, then surely adding, or removing, only a small amount constitutes a big difference to temperature. There are people who feel the internationally agreed, measured steps currently in place to achieve net zero don’t go far enough. Realistically, though, we’re having enough difficulty achieving them. More stringent demands are likely to remain fantasies. As important as limiting CO2 emissions is, it’s only half the problem. Unless we find effective methods for removing it, many experts say we’re doomed to global warming well in excess of 1.5 degrees
Celsius with all the attendant problems such warming produces. There are numerous technologies under development to remove CO2, some of which involve storing the sequestered carbon underground. This is known as carbon capture and storage (CCS).
To date, most CCS methods either don’t capture useful amounts of carbon, are too energy intensive, or impractical for other reasons. Meeting the energy draw of energy intensive methods by using renewable energy to power such processes defeats the purpose. This is because it’s just easier (in the long term at least) to use the renewable energy directly to replace processes that create the carbon in the first place. Some schemes capture and store the CO2 by pumping it into existing oil wells to push out more oil and extend the life of the well. Oil companies have favoured this method and see it as a path to further extend the
Near Broken Hill. We’ll see more of these (above left). Glen Innes. Again, there will be more in the future (above centre). The suburban rooftop will be a vital part of our future energy mix (above). There are more ICE car fires than BEV fires (right)
2 exacerbating the problem. Technology may have brought us the problem, but natural systems may offer solutions. These days, we’re adding around 50 billion tons of greenhouse gasses to the atmosphere annually. Small scale experimental projects won’t cut it. We need to remove billions of tons. In a recent interview, emeritus professor of physical chemistry at Cambridge University, and climate expert Sir David King, outlined a natural method of removing as much as 13 billion tons called marine biomass regeneration. In summary, when whales surface for air they also release their bowels. The fertile matter expelled in the surface layer of the ocean acts as a nutrient for phytoplankton, which absorbs CO2 as it grows. The phytoplankton in turn becomes
A similar, semi-natural method involves the ice sheet covering Greenland, which is almost a couple of miles thick. As it slides towards the ocean, it grinds the underlying larval material into a fine powder. This powder is also a source of nutrients for the ocean and there’s trillions of tons of it. It’s floated on specially prepared rice husks. The spreading of this material across the oceans could be done by cargo ships plying the world’s deep waters.
In the end, although valiant technological attempts at capturing atmospheric carbon dioxide are useful, utilising nature itself at global scale has the potential to dwarf human efforts.
Large scale maritime transport won’t be electric (above). Right, top to bottom: Concrete emits carbon dioxide and it’s the most widely used construction material. Green processes have been developed.
Steel making is also a large emitter of greenhouse gasses, but we need steel. Green processes are under investigation. Rice farming is a main source of methane. Whales hold the key to massive CO2 capture in the oceans.
Greenland can also be a major producer of nutrients for the oceans.
Large scale air travel will probably never be decarbonised (below)
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TOYOTA HIACE 200 SERIES:
REAR WHEEL BEARING REPLACEMENT
200 Series
The
rear wheel bearings on Toyota commercial vehicles is a common trap for technicians that don’t know the trick, and the HiAce is one of these. If assembled incorrectly, the axle seals will leak, and you will have to start the job again. This article will give you the correct distances to press on the components so you can get it right the first time.
Removal and Refit
The process to remove and refit the axles from the vehicle is simple and like the Hilux of the same year model. We have covered the Hilux wheel bearing troubles in the May 2017 issue of Tech Talk (page 4328) as the design of the wheel bearings,
Diagram 1 – Use the right tool for the job
and axles are similar. Refer to the Hilux article for more details.
This article covers the HiAce as it uses a different measurement method, and we will reinforce the easily avoided common errors made in a wheel bearing replacement. Bent Brake Backing
Plates
Some of the trouble starts when disassembling the axle. This is because the bearing is a tight fit on the axle and without the correct tools you can bend the brake backing plate which may cause problems with the reassembled brakes. To avoid this problem, we recommend buying or making an appropriate press tool to support the axle in the press. See Diagram 1 NOTE: To press the assembly apart, some members of the trade release the circlip from the groove and press all the parts off in one go to save time and avoid damaging components. However, the most common issue is the oil leaks after reassembly with a new bearing kit.
Axle Seals Leaking
The HiAce shares the same problem which occurs for the Toyota Hilux, as this design has no step on the axle to align the ABS tone-wheel and second bearing retainer. See Diagram 2
If you assume that you press them on all the way, and it will be right, you will be wrong, and it will leak. If pressed all the way on, the ABS tone wheel will be against the circlip which secures the first bearing retainer. Then if you press the second retainer up to the ABS tone wheel, the axle seal in the axle housing will not contact the bearing retainer correctly which is the reason for the leak. Some later models may have a double row bearing, but the same problem will arise if not assembled correctly. See Diagram 3 & 6
The Correct Distance
The HiAce manual gives a different method to measure the correct distance to position the second
Diagram 2 – There is nothing to stop you doing it wrong
Once the bearing and the first retainer are pressed onto the axle, you can fit the circlip into the groove.
NOTE: There is nothing to stop you from pressing the ABS tone wheel and second retainer on too far.
2005 – 2020 Toyota HiAce
If you don’t use an appropriate tool it’s likely you will bend the brake backing plate. You can buy or make a tool that bolts onto the flange which will safely remove the axle from the bearing and retainers.
Diagram 3 – Incorrectly assembled: The bearing retainer will miss the seal and leak
If the ABS tone wheel and second retainer are pressed on up to the circlip, the seal will not contact the retainer and leak.
The wheel bearing is not a tight fit in the housing, so oil will leak past.
Diagram 4 – Correctly assembled: The bearing retainer will contact the seal
When the assembled to the correct distance the seal will contact the second retainer.
Differential oil
Differential oil
Differential oil
Axle housing
Axle housing
Axle
bearing retainer than the Hilux manual. However, reports from the trade indicate these might be two different ways to achieve the same positioning. The HiAce manual states there must be 31-33mm between the bearing face and the top edge of the ABS tone wheel. The ABS tone wheel has three steps; ensure you measure from the very outer step. See Diagram 5
NOTE: After a conversation with the team at Northern Differentials, they set up all their Toyota axles with 4mm clearance from the top of the circlip to the underside of the ABS tone wheel, and they don’t have any leaks. See Diagram 5
Be aware the bearing is not a press fit into the bearing housing and can move in and out, so don’t measure from the bearing housing. This clearance is how the oil gets past the bearing and the bearing housing, and then leaks out past the outer seal. See Diagram 3
To assemble these components in the press and not to go too far, requires planning as space is tight. To avoid drama, the team at Fleetline Automotive measured the thickness of the ABS tone wheel, which turned out to be 16.1mm. They subtracted this measurement from 32mm, (which is in the middle of the required specification). This left 16mm, which is a convenient size for finding the right size drill bit, Allen key or other object to use as a spacer. See Diagram 7
Then when pressing the ABS tone wheel and second bearing retainer onto the axle, use the spacer as a guide to judge the distance. See Diagram 7
WARNING: Be careful not to get the spacer jammed between the bearing and the ABS tone wheel. Once out of the press, check the measurements are within the specifications (See Diagram 8). If not, you might be able to readjust the gap. However, this may not work, as you may damage some of the parts.
Wheel bearing kits for these vehicles do not come with a new ABS tone wheel. It is recommended to order a new one for this job. When ordering parts, ask if the kit includes the circlip as you might need one.
Diagram 5 – HiAce ABS Tone Wheel Distance Specification
The distance from the bearing face to the top of the ABS tone wheel should be 31-33mm.
Trade recommendation is to ensure there is 4mm clearance between the circlip and the bottom of the ABS tone wheel.
Diagram 6 – Before measurement: This one leaked
Second bearing retainer
ABS tone wheel
First bearing retainer
Axle
Bearing housing Circlip
Bearing
This is only 25mm to the top of the ABS tone wheel. It should be 31-33 mm.
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Measuring the ABS tone wheel and knowing the correct specifications requires basic maths to find an appropriately sized tool to set the distances correctly.
Workshop Tip: Before dismantling any wheel bearing, it is good practice to take measurements from a fixed point to the surface where the seal runs (provided it’s not leaking).
This should ensure you can reassemble the components to the same dimensions.
For more information on Toyota commercial vehicles, log on to VACC MotorTech or call the VACC TechAdvisory Service.
Thanks to the teams at Fleetline Automotive and Northern Differentials for their assistance with this article.
Diagram 8 – After measurement: Within specification
Diagram 7 – ABS Tone Wheel Assembly
This is a deep socket with an outside diameter of 16mm.
Use a spacer to judge the required clearance when pressing the ABS tone wheel and second bearing retainer onto the axle.
After assembly, check you are within the specification. It should be 31-33mm.
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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
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
VACC Accreditation
VACC Accreditation is here to help drive your business forward. Achieving accreditation means a business can demonstrate it is meeting a higher standard that is valued by customers.
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 ready-made, 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
Test and Tagging
ETCS offers TACC members electrical service statewide, including installation, testing and tagging and assisting with OHS requirements. TACC members can access special member rates.
1300 724 001 etcs.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
The last word
From the archives: The Australian Automobile Trade Journal April 1924
Liability and 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 is proud to be trusted by automotive businesses across Australia.
Contact us today to arrange a hassle-free insurance quote for your business.
