Australasian Automotive February 2024

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06 AWARDS TIME

Applications are open for the 2024 Automotive Industry Awards, so get thinking about what sets your business apart from the rest

08 REGULATION COST

Appointing a car ombudsman will cost plenty and we all know who’ll pay. VACC proposes a better way that ensures fairness for all

10 NOT RESPONSIBLE

A supplier may not have to provide a remedy for unacceptable quality goods under certain circumstances. Knowing what they are may save headaches in business dealings

12 POLICY INITIATIVES

VACC’s Industry Policy team has been hard at work during the year securing better and fairer trading conditions for members, so what’s the latest development affecting you?

14 SMART CAMERAS

Employers should ensure their employees know they’re being watched while driving company cars, otherwise big fines may be on the way

20 ANCAP AGES

The Australian New Car Assessment Program (ANCAP) turned 30 years old recently. Motorists rely heavily on the ANCAP star rating system when buying vehicles

24 SCAM SCOURGE

The Australian Competition and Consumer Commission warns of increased cyber security threats and offers advice on keeping businesses secure

32 BIG CHAIR

Brian I’Anson from Sixfam provides an update on this important industry service and how it can help repairers secure their business 38

INDUSTRY 4.0

It started with The Industrial Revolution and now we’re on the precipice of a new revolution that we need to master

44 IN THE KNOW

Getting Technical this issue addresses Mitsubishi engine valve clearances, and how to get them right

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

APPLICATIONS are now open for the 2024 Automotive Industry Awards.

Created to acknowledge and reward the best automotive businesses and personnel in Victoria and Tasmania, the Automotive Industry Awards nominations close on 15 March. We had a record number of entries last year, so get your application in as soon as possible. An independent standards expert will judge and audit the applications to separate what we expect to be a tight field which re-set the bar extremely high last year.

So, apply for your chance to showcase your achievements, gain recognition for successes and promote your business to existing and potential customers and staff.

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

Best 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

DAVID DOWSEY

YOUR TIME TO SHINE

Soon, we’ll reveal the best in the business at the industry night of nights: the Automotive Industry Awards and President’s Gala Dinner at Palladium at Crown on 29 June.

On the night, 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 2023 major event partner DENSO for its support, as well as the AIA category sponsors Podium, Commonwealth Bank, OurAuto Insurance, Zembl, Mining and Automotive Skills Alliance and Bendix.

Sponsors on the apprentice front included Spirit Super, Mas National and SP Tools. Fingers crossed for all VACC and TACC member entrants.

For more information about the awards, key dates and tickets, go to automotiveindustryawards.com.au

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

Entering the AIA is a great way to showcase you and your staff’s achievements, gain recognition for your successes and promote your business to consumers.

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 open: Thursday 1 February 2024

Ticket sales open: Friday 1 March 2024

AIA applications close: Friday 15 March 2024

Ticket sales close: Friday 31 May 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

WE currently have an argument that appears every few years, calling for a car ombudsman to deal with complaints against licensed motor car traders in Victoria.

Each time this argument raises its head, VACC reminds governments and consumer advocacy groups that there is already a range of remedies available for consumers if they’re unsatisfied with products and services, or lack thereof.

Remedies include engaging with the dealer directly, applying to the Victorian Civil and Administrative Tribunal (VCAT), applying Australian Consumer Law, or making a claim against the Motor Car Traders Fund.

Consumer advocates say this isn’t enough.

VACC argues that adding more bureaucracy and public cost to an additional level of complaints management will just duplicate what the existing regulatory arrangements provide.

More regulations would simply have consumers running from pillar to post.

COST OF REGULATION

In discussions with stakeholders on this matter, VACC maintains that if VCAT and other organisations do not have the resources to meet consumer demands, the government should fund them properly so they can do their job.

Maybe the government should redirect funding from consumer advocacy groups to places like VCAT?

If the layers of regulation make it more precarious for a licensed motor car trader to buy and sell cars, then it’s possible used car prices would plummet when the government announces a new car complaints ombudsman.

That’s money out of your pocket.

And what about the majority of used car sales occurring from consumer to consumer? Who is policing the many problems that occur in that market?

Want to hear more from VACC CEO Geoff Gwilym? Read his weekly column in The Herald Sun.

JOHN CAINE SUPPLIER NOT RESPONSIBLE

A supplier may not be responsible to provide a remedy if goods fail to be of acceptable quality because the consumer causes them to become of unacceptable quality or does not take reasonable steps to prevent them from becoming of unacceptable quality. For example, the consumer uses the goods in an ‘abnormal’ manner.

A supplier may also not be responsible if the consumer examines the goods and that examination should reasonably have revealed that the goods were not of acceptable quality or if the supplier informs the consumer of a particular fault and the consumer still agrees to buy them. It should be noted that the guarantee may still apply if a different fault occurs. Some goods may not be of acceptable quality due to problems already known to the supplier — for example engine or transmission issues with a vehicle.

Defective goods can be sold if the consumer is alerted to the defects before sale. For instance, the supplier informs the consumer before selling the goods or displays a written notice with the goods. This must be clearly presented, legible and expressed in plain language. It is not enough to simply describe the goods as ‘as is – where is’. However, a

consumer is assumed to be aware of defects if a written notice setting out the defects is displayed with the goods. This notice should be signed and a copy given to the consumer with the original being retained by the seller. When a consumer is alerted to defects in goods before sale, they will not have the right to a remedy if those particular noted defects fail or cause problems with the goods.

A consumer is not entitled to a remedy if they had an opportunity to examine the goods before purchase and did not find defects that they should have noticed.

For example, classic and vintage vehicles for restoration are often sold on an ‘as is’ basis.

A car dealer is not required to give a remedy for defects that a consumer should have noticed when examining the goods, such as chipped surfaces or faded paint.

The amount of effort a consumer should make examining goods, if given the opportunity, depends on the nature of the goods.

For new goods, limited or no examination would be expected. However, a consumer may be entitled to a remedy for defects that they would not have found with even the most careful inspection.

Now, what if the consumer uses the goods in an ‘abnormal’ manner?

Goods are not expected to be indestructible; a consumer’s use of goods can affect the durability of those goods. The law does not define ‘abnormal use’. Examples of abnormal use would include: a 4WD vehicle's radiator is plugged with mud causing engine damage due to overheating; or a ride-on lawnmower is used to mow metre-high grass.

Suppliers and manufacturers must guarantee their description of goods (for example, in a catalogue or newspaper or digital advertisement) is accurate. This does not apply to goods bought at auction.

A consumer who buys goods that do not match the description — for example a utility sold as a 4WD turned out to be 2WD — is entitled to a remedy. A supplier will struggle to argue that the consumer inspected the goods before purchase and should have picked up any errors in the description in that case.

Suppliers and manufacturers also must ensure that any promises (‘express warranties’) made about things such as the quality, state, condition, performance or characteristics of goods, will be honoured.

IMOGEN REID SPECIALIST SKILLS ON AGENDA

The policy team and our related national industry groups are ready to fight the good fight for the automotive aftermarket in 2024. 2023 saw substantial legislative reform implemented across a range of areas and it’s likely 2024 will see a similar pattern, particularly as the Federal Government’s Migration Strategy (announced in December 2023) will commence implementation.

As part of the strategy, the Federal Government has announced three temporary visa pathways:

Specialist Skills Pathway for occupations above $135,000. This will include a seven-day visa processing time. They are not, however, eligible to tradespeople, machinery operators, drivers and labourers.

VACC and the MTAA have publicly called for the inclusion of automotive tradespeople to this visa category.

Core Skills Pathway for occupations between $70,000 - $135,000. This visa has a 21-day visa processing time. To qualify, the occupation will need to be on the Core Skills Occupation List that will be developed by Jobs and Skills Australia (JSA).

Essential Skills Pathway – for occupations below $70,000. This visa relates to the care and aged care industries only. In terms of timeline, VACC can advise the following:

Early 2024

Consultations for the Essential pathway for lower paid workers

Consultation paper to revamp the points test for permanent migrants

Consultation on the development of a new Talent and Innovation visa

Discussion paper to be released for the Working Holiday Maker program

New English language requirements for graduate and international student visa holders.

Mid 2024

Remove visa duplication

Legislate indexation of income for Skills in Demand

Greater regulation of temporary graduate visas

Harsh penalties for worker exploitation

Improve skills recognition

More regulation in the approved sponsor application process

Additional protections against visa cancellation and opportunities for those that experience exploitation.

Mid to late 2024

Establish a best practice service level agreement for processing times and modernised accreditation pathway.

Late 2024

Develop new Skills in Demand visa – Specialist Skills Pathway, Core Skills Pathway

Create a new public register of approved sponsors

• Tripartite approach to identifying skills needs

Establish a formal role for Jobs and Skills Australia

Streamline Labour Market testing to reduce complexity – implement four-to-eight-month LMT validity.

VACC is aware of the skills shortages being experienced across the industry. To convey industry’s needs, VACC is developing our response to JSA’s Skills Priority List call for submissions. As part of this work, we will be conducting a nation-wide survey to understand current skills shortages according to occupation. Please look out for this survey link in January 2024. It is vitally important the industry tells us where they experience difficulty. Without robust evidence, we run the risk of automotive occupations being removed from the list, therefore, I cannot overstate the importance of members completing this survey once announced. So, please complete it when it hits your inbox!

Following the above, VACC understands many may look to engage international labour to meet the growing needs of their business. VACC will offer members access to a series of free online seminars with migration experts in early 2024. The sessions will detail what the recently announced Migration Strategy means for automotive and provide advice on how an automotive business may go about engaging foreign skilled labour.

SINCE August 2023, Tasmanian motorists have been watched by 14 new mobile phone and seatbelt detection cameras.

During the initial trial period, Tasmanian Police caught 339 offending drivers within 43 hours. These drivers were let off scot-free during the trial. That was a tearup of over $132K in revenue.

Let’s get this straight, this is not about revenue raising. It’s about trying to save Tasmanian motorists’ lives.

The cameras use artificial intelligence (AI) software to filter images and detect possible mobile phone use by the driver, or failure to wear a seatbelt by driver or passengers.

Since becoming effective, over 1,500 fines have now been issued. That’s over half a million dollars in penalties handed out to drivers.

And while our road fatality numbers have reduced, incidents of serious injury from car accidents increased.

BRUCE MCINTOSH SMART CAMERAS

Tasmania’s Road Safety Advisory Council says speed, distraction and not wearing a seatbelt contributed to 60 per cent of road deaths.

To clear any confusion of the rules, it is illegal in Tasmania to drive while using a mobile phone, touch the phone or have it in your lap. Looking at a passenger’s phone while driving is also illegal.

Phones held in cradles that are not touched may be used for audio calls only.

You can now say goodbye to $390 and the loss of three demerit points if caught and, let me tell you, these cameras are amazing at detecting illegal phone use and other driver distractions.

You will also be fined for every passenger not waring a seatbelt.

So, next time you get behind the wheel, click on your seatbelt, store your phone and you’re good to go.

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."

Walker, General Manager, Grant Walker Parts

VACC visits Wodonga

VACC president Chris Hummer and VACC CEO Geoff Gwilym visited Wodonga area members on Wednesday 13 December, before a well-attended member briefing at Edwards Tavern in the evening.

First on the itinerary was member 558, Azzi-Nusser Service Centre at 26 Mint Street Wodonga, owned by Steve and Peter Nusser. Established in 1969, Peter completed his apprenticeship with the original owner, Jimmy Azzi, before buying part of, and then the whole, business.

The business performs mechanical servicing and maintenance, and provides roadworthy inspections for cars and motorcycles, and employs four staff.

Peter and Steve are obviously doing something right: staff member Kevin completed his apprenticeship with the business and is still there 23 years later, while Darrel is a 20-year staffer. In good news for the future, Azzi-Nusser has employed an apprentice who shows signs of wanting to continue with the business in a management position.

Steve Nusser said, “We offer good work-life balance and we look after our staff.” It shows.

Azzi-Nusser is a two-time Automotive Industry Awards finalist and they well use VACC’s services. VACC’s commercial arm, OurAuto, recently saved the business $17,000 per annum on its general insurance. Steve, who comes from the insurance industry, reckons that’s pretty good, and we agree with him.

Mr Hummer and Mr Gwilym presented Steve and Peter and their longserving staff with a 50 years of VACC membership certificate.

Second stop was Blacklocks Ford and Trucks at 207 Melbourne Road can trace its roots back for over 130 years in the Albury-Wodonga region, having started business in 1892 as a bicycle manufacturer. These days, they have 13 franchises dealing in trucks, motorcycles and cars, with brands including Ford, RAM, Jeep, LVD, Renault, Skoda, Haval, and Iveco. Blacklocks employs 220 staff across three sites and takes on new apprentices each year.

Dealer principal Michael Dixon appreciates the information and support he receives from VACC’s workplace relations team and praised Industry Policy Advisor, Michael McKenna for his unwavering support of LMCTs and the Blacklocks business.

Ever-changing workplace policies keep Michael up at night, so Mr Hummer and Mr Gwilym outlined the latest in VACC’s efforts to counter poor policy that affects businesses, such as Blacklocks. Michael discussed the ‘Closing the Loopholes Bill’, union right of entry, Same Job Same Pay and wage theft and VACC’s advocacy to counter these issues.

Blacklocks is one of Australia’s oldest Ford dealers and provides the local area with significant employment, along with sponsorships of various sporting

and other groups in the community. Next on the agenda was farm machinery dealer, CADMAC in McKoy Street Wodonga, where the team met with financial controller, Scott Knight.

CADMAC has several dealerships and the business continues to expand. Like many businesses, it’s difficult to find good staff, but building a positive culture is at the heart of plans to change that. When staff leave or retire, they take with them their knowledge and networks, which need constant replenishment.

Scott Knight said stock control is a constant issue and that he sees local farmers increasingly using technology to increase the yields

from their land, so the staff need to be on top of changing trends. Of course, customer service is paramount. When it’s harvest and a machine breaks down, the CADMAC team comes to the rescue 24 hours a day. This, hopefully, leads to return custom and good word of mouth, the holy grail in business.

Last on the road trip was Royans Transport Accident Repairs at 24 Muller Street Baranduda, just outside Wodonga. Royans is part of a 29-branch business group offering heavy vehicle accident repairs. The business employs nine staff on site and conducts chassis, body and cab repairs and paintwork. Royans has been in business since 1944.

Branch manager Kerry Little stressed their strong OHS systems and the need for regular morning ‘toolbox’ discussions. This seems to pay off, as the business has been accident-free for five years. Kerry said the business’ pain points included write-off definitions, insurance company relations and backyard operators.

Repairing big rigs is tough work, but Royans looks after its staff and takes health and safety, particularly mental health, seriously. As a result,

Royans has happy staff relations and several long-termers.

Later that night, Wodonga area VACC members turned up in droves for an information night at Edwards Tavern. Members from sectors across the automotive industry kept Mr Hummer and Mr Gwilym on their toes with questions about electric vehicles, alternative fuels, access to repair

information, agency dealer models and more. The obvious appetite for information ensured a large crowd where local members could also network and enjoy VACC’s hospitality. Mr Gwilym said the model was rightsized and member feedback was positive, so a repeat is inevitable. “We’ll be taking this format around the state,” he said.

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.

ANCAP marks 30 years of safety testing

ONE questions on all car buyer's minds is: how safe is this vehicle I am going to buy? Eventually, people think of stars which then become aligned with ANCAP.

ANCAP has turned 30.

Established in the early 1990s as just the second New Car Assessment Program in the world after the United States, ANCAP and its star ratings have become synonymous among Australian and New Zealand car buyers as the independent and trusted voice on vehicle safety.

For many motorists, vivid images from the early days of ANCAP testing have become ingrained in their mindsets over the past three decades.

When ANCAP began, its ultimate aim was to make safety as important to car buyers as engine size, styling and comfort.

ANCAP began as a two-year campaign to shine a light on the comparable levels of safety offered by Australia’s most popular selling models. It has now grown to become the priority measure used to determine new vehicle safety.

“Until ANCAP’s establishment in the early 1990s, there was no way for car buyers to see how well, or not, their vehicle performed in a crash, nor any incentive for manufacturers to fast-

track safety improvements in their models. Today, ANCAP safety ratings are a valuable consumer tool and one of the most sought-after aspects when purchasing a new vehicle,” said ANCAP CEO Carla Hoorweg.

The first vehicles ANCAP tested in 1993 underwent just one crash test – the full-width frontal test conducted at 56km/h – and were fitted with minimal safety features. In stark contrast, vehicles rated by ANCAP today are subject to seven destructive crash tests covering a range of crash scenarios, as well as a suite of collision avoidance performance tests comprising hundreds of varying daytime and night-time scenarios involving other vehicles, pedestrians, cyclists and motorcyclists.

“As we drive around our suburban streets, cities, highways and regional roads, a quick glance at today’s vehicle fleet reveals the vast improvements realised as a result of ANCAP’s influence. And the benefactors (are) all Australian and New Zealand road users,” said Ms Hoorweg. It must be tough being a crash-test dummy and, while some might sympathise, all motorists can appreciate their work and the stars created in the motoring universe because of ANCAP’s destructively beneficial testing.

International diagnostic superstars set to impress at Auto Aftermarket Expo

AUSTRALIAN automotive technicians will have an unprecedented opportunity to ramp up their diagnostic skills at the highly anticipated 2024 Australian Auto Aftermarket Expo, thanks to two of the world’s foremost diagnostic experts.

The Expo will host industry legends Danny Versluis, aka ‘Diagnose Dan’ and Sean Tipping for an exciting new, in-depth Technical Training Program specifically designed to ensure technicians stay ahead of the curve now and into the future. Sean and Dan will bring a wealth of knowledge to share with technicians given their respective skill sets and experience.

This exciting new Technical Training Program will run across four days, beginning Wednesday 10 April, a day before the official opening of Australia’s largest automotive industry Expo on Thursday 11 April.

Diagnose Dan is a highly respected automotive diagnostic expert based out of the Netherlands, commonly known for his popular ‘Diagnose Dan’ YouTube channel, and the Diagnose Dan Technical Support Base, one of Europe’s largest technical help desks.

Dan’s exclusive Expo sessions will cover AdBlue & diesel aftertreatment diagnostics, LIN bus diagnostics, EV diagnostics challenges, thermal management mastery and network troubleshooting.

“I can’t wait to attend the Expo with my colleague Martin Møller. Our ‘keep it simple’ approach helps technicians better understand systems that can look quite intimidating. We know exactly what workshops are struggling with and our training focuses on providing straight forward solutions,” said Dan.

US-based Sean Tipping has 18 years’ experience in the industry as a full-time technician, instructor and as owner of a mobile diagnostic and programming business. Sean is also the voice of the popular ‘Automotive Diagnostic Podcast’ when he is not working and teaching.

Sean’s exclusive Expo sessions will cover circuit analysis, parasitic draws, network diagnostics and how to condemn a control module.

“I’m excited to be heading to Australia for the first time. I’m ready to share my expertise on electrical and diagnostic procedures. It’s a fantastic opportunity, and I’m grateful for the chance to contribute in a new setting,” said Sean.

Stuart Charity, CEO of the Australian Automotive Aftermarket Association is proud to have the pair join the Expo in 2024.

“Dan and Sean were chosen for their expertise and profile in the industry, and we are honoured to have them headline our most

comprehensive Expo training and education program ever,” said Stuart.

The new Auto Aftermarket Expo Technical Training Program will be a valuable add-on opportunity to attendees who want to supercharge their knowledge over and above the fantastic free education opportunities that will be on offer during an action packed event in Melbourne next year.

Co-located with the Collison Repair Expo, the AAAExpo is the nation’s only comprehensive exhibition for Australia’s $25B aftermarket industry. In addition to incredible training, the world-class event will feature over 400 of the country’s leading companies, display the latest and greatest, tools, technology and products across over 21,000-square metres of floor space.

Combined with a dedicated Expo Electrified Zone, ADAS Technology Zone, 4WD Innovation Zone plus interactive displays, a networking event and much more, the Expo will be an unmissable industry experience.

The Expo, proudly sponsored by Repco will be held from 11-13 April 2024 at the Melbourne Convention & Exhibition Centre, with the Technical Training Program starting a day earlier on Wednesday 10 April. To see the full Technical Training Program schedule, topics and to book tickets please visit autoaftermarketexpo. com.au/tech-training-schedule/

ACCC warns car dealers of scams targeting customers

THE National Anti-Scam Centre, an operation of the Australian Competition and Consumer Commission (ACCC), warns of a rise in business email scams targeting car dealership customers and used car traders. ACCC says the scam may have also spread to caravan dealerships.

ACCC established the National AntiScam Centre in July 2023 to facilitate cooperation and collaboration across industry and government and make Australia a harder target for scammers.

Here is how the scam works, along with ways for businesses to protect themselves and their customers.

The legitimate business’ email account is compromised, usually through an email phishing attack. The scammer can read emails sent and received by the business and can send emails from the account. The business may remain unaware that their email account has been compromised for weeks.

The scammer emails customers from the compromised email account requesting payment of their deposit (or payment of a further amount if they have already paid a deposit), providing their own bank details rather than those of the trader or dealership.

Alternatively, scammers may email customers from a different email address that looks similar to a legitimate company’s email address.

The customer receives the invoice from the scammer and transfers the deposit into the scammer’s bank account, instead of into the business’ account.

• When the business notices it has not received a deposit, it will email an invoice to the customer.

The scammer sees this email sent by the business, and may send another invoice to the customer, requesting even more money. The invoices sent by the scammer appear identical to the genuine invoices, except for different bank account details.

Because the scammer has access to the business email account, they know the names of staff and customers. The scam emails appear to be personally addressed to the customer and signed off by the trader’s/dealership’s staff.

ACCC has included this information in the Scams targeting customers of car dealerships and used car traders.

VACC encourages business owners to print this advice and display it in a prominent position at their dealership. Warning signs

• You don’t receive emails that people say they have sent you.

Emails are classified as ‘read’ without you having read them, or emails disappear from your Inbox.

There are strange emails in your sent folder.

• You cannot access your email because the password is incorrect. You receive unexpected password reset notifications.

Your email app reports signins from unusual IP addresses, locations, devices, or browsers.

Protect yourself and your customers

ACCC recommends the following steps to help protect you and your customers:

Check and secure your email systems as per the Australian Cyber Security Centre’s advice.

• Check your email system for unexpected ‘filter rules’. In Microsoft Outlook, click on the ‘File’ tab, then click the ‘Manage Rules & Alerts’ button. Scammers can use these to hide their correspondence from compromised accounts.

Change email access passwords regularly, and always use a unique, complex password. Do not use the same or similar passwords for different services, apps, or websites. Let your customers know to contact you if they receive correspondence claiming you have changed bank details. Warn customers to look out for suspicious emails and advise you of any unexpected email contact from your business.

The National Anti-Scam Centre will continue to undertake disruption activities wherever possible, including by sharing intelligence with law enforcement and the financial institutions of alleged scam accounts.

ACCC wants to hear about initiatives implemented by dealerships to reduce the impact of scams, or any intelligence you receive regarding scams and/or the impersonation of your business or staff.

If you become aware of scam attempts, report them to the National Anti-Scam Centre. You can contact the National Anti-Scam Centre at NASC@accc.gov.au

Find out more on the ACCC’s efforts to stop scams on the ACCC website.

FBT regulation changes can save dealer groups significant fringe benefits tax

WORDS Steven Bragg, Partner –Motor Services Industry Lead, Pitcher Partners, Sydney

DEALERS can save significant FBT by mixing zero or low emission vehicles (ZLEVs) into their FBT car pools. Since ZLEVs are assigned a zero value for FBT purposes via the electric cars exemption, then a fleet of such vehicles for a dealership’s staff could conceivably incur zero FBT liability as well. FBT pools are not mere stock lists; they catalogue the vehicles available for daily use by staff, and are an integral part of the FBT puzzle. Given that dealership staff use vehicles every day, managing their mobility and maintaining accurate records can be a logistical challenge. Therefore, if the entire pool of vehicles available to staff comprises ZLEV models, the pool value would theoretically be nil. FBT by any measure constitutes a substantial tax for dealerships, equally borne by both the employer and its employees. Diminishing this fiscal burden, while simultaneously exhibiting environmental consciousness amounts to business benefits through reduced taxes and potentially lower employee FBT contributions. Considering the escalating costs associated with electric vehicles and the oftenoverlooked inclusion of car parking in FBT calculations, dealer groups need to direct their ZLEV models to the FBT pool to reduce the FBT expense line. By having only a portion of the FBT pool represented by ZLEVs, dealers can effectively eliminate the FBT expense.

Worked examples*:

Assumptions (constant through the below examples)

Example 1: Dealer group with only new (non ZLEV) vehicles in the FBT pool.

As you can see from the worked example, FBT can be an onerous taxation cost for car dealer groups. The average cost after employee contributions for the dealer group is $5,437.30 per year per employee provided a car benefit. By having say, 140 employees provided the car benefit, the total FBT bill for the year is $761,221.68!

When you add in used cars to the FBT pool, the FBT liability reduces. This has been in practice for some time for dealer groups.

Example 2: Dealer group with new and used cars in FBT pool.

As ZLEV stock becomes more available, dealers should seek to increase the mix of FBT pool cars that are ZLEV and are exempt from FBT. Below is an example following on from the above with 50 per cent of the FBT pool being ZLEVs.

As you can see, the FBT liability nearly vanishes (when including employee contributions) with only 50 per cent of ZLEVs in the FBT pool. The FBT per employee provided the car benefit is $242.98 per year (after contributions).

I would suggest that this change in FBT regulation is a call to action for dealers to revisit and dissect the FBT structures within their dealerships. It signals to dealers to begin to mix in ZLEVs in their FBT pools, and, in turn, bestowing a well-earned pay rise upon all stakeholders.

As always, get professional advice

As you can see, by reducing the average base value of the pool, the FBT liability can almost halve per the worked example above. The FBT payable per employee is $3,097.05 which is significantly lower than the ‘only new’ example. This is an important reminder for dealer groups to make sure they have accurate records to keep their FBT expenses minimised.

Enter the electric car FBT exemption

From 1 July 2022, employers do not pay FBT on eligible electric cars and the associated car expenses; a game changer for dealer groups in terms of FBT expense.

Example 3: Dealer group with new, used and ZLEVs (50% of total) in FBT pool.

for your particular situation to ensure you comply with all FBT laws and regulations. If you need help with your FBT or any dealership taxes, Pitcher Partners Motor Industry Services is happy to assist.

Any individuals employed by Australian repairers or Registered Training Organisations.

What information can be accessed?

Service schedules, service manuals, service bulletins, repair procedures, wiring diagrams, diagnostic hardware, software etc. Key, immobiliser and radio codes require VSP* status.

Technician

Technician, Collision repairers, locksmiths* RTO trainers (service manuals, repair procedures, TSBs, diagnostics etc.)

Add-on safety

• EV-hybrid high voltage (certificate required)

Hydrogen (certificate required)

Add-on Security*

The legislation covers vehicles (cars, SUVs, light commercial) from 1 January 2002 onwards. Note

Vehicle Security Professional* VSP (key, immobiliser codes etc.) Police certificate, business insurance required

BRIAN I’ANSON

DIRECTOR SIXFAM

Brian I’Anson started in the telecommunications industry 40 years ago as a technical officer at Telecom Australia. His experience grew into the areas of technical training, customer support, sales and account management. He worked as the marketing manager for Nortel Communications for 11 years, then an opportunity arose to establish his own business and I’Anson created Sixfam.

Tell us about the origins of Sixfam. Sixfam is an experienced telecommunication service provider, established to help ease the frustrations of business owners in Australia. It was born out of a desire to not only provide seamless telecommunication solutions, but also to provide the support that people can rely on. Sixfam is a collective of individuals full of knowledge and experience within the industry who understand customer frustrations. An industry that is built on communication, all the big players are notoriously hard to get hold of, as they outsource their own communications to call centres where the troubleshooting advice usually comprises: ‘Have you tried turning it off and on again?’. What solutions does Sixfam offer business owners?

Sixfam offers a range of telecommunications solutions. We cater for all businesses, small and large. Our focus is on products, such as business phones, lines and the internet. Our product suite now extends into mobile sims, electrical, security cameras and wifi. Sixfam can bill and maintain all these services with local support.

How important is it that business owners update their telecommunications software?

In an everchanging world, it is important to make sure business owners utilise the latest technology that integrates fully with all their business needs. Our recent focus on hosting/cloud-based phone systems allow us to upgrade and develop offerings that come to market.

A lot of businesses are looking to streamline and make the customer journey easier. Integrating their telecommunications into a CRM can help them identify and log job tickets easier. Having access to their business calls without the need for call redirection means they will never miss a call. Other benefits can be found in setting up after hours support lines and call flows.

Sixfam promotes itself as an Australian family business. Why is this significant?

A family-owned business means you deal with local businesspeople who have a vested interest in making sure the customer experience is enjoyable. We have found a lot of business owners who are VACC members have family involved. Sharing the same values as our customers gives you a great understanding of what they want and need. I consider all my staff family, as they have been at Sixfam for over 15 years.

As a Victorian-based business, how does Sixfam support customers nationally?

Over our lifespan, we have grown to a national customer base. A customer came to us with 350 locations needing services. The project has forced us to locate and build relationships with contractors Australia-wide, including Tasmania and New Zealand. Sixfam will back and guarantee our services and support in any state or territory. Hosting our telephony solutions in the cloud allows us to have access anytime and anywhere. The technical team no longer has to be onsite to provide support or to make certain changes for our customers. We don’t mess around with faults. If needed, we will send out a tech.

You’ve recently become a VACC Corporate Partner, but you had an earlier association with VACC. Tell us about this.

Our association with VACC started over 15 years ago when Sixfam won a tender to update and change over all telecommunication equipment, including the call centre. VACC wanted a supplier that could offer a high level of support with the ability to send out local techs if needed. Recently, we have upgraded VACC to our latest cloud hosted offering, 3CX. Staff can have UC applications, giving them the opportunity to work on the road and remotely. Inclusive of this package is our 1300, 1800 and New Zealand inbound services.

Why should a VACC member use Sixfam?

Business owners looking for a telecommunications supplier should engage with Sixfam for the following reasons:

Small or large, Sixfam treats all customers with the same amount of care.

No contracts. We are not looking to lock customers into a long-term contract or finance agreement.

• No hidden costs. Our pricing is honest. We offer both monthly and upfront pricing.

24/7 support is included with all our customers and services.

15 per cent discount to VACC members.

Free bill comparison. Speak to our team to review your current solution and we’ll let you know if we can beat it.

What roles did you have before you became the director of Sixfam?

I started in this industry back in 1984 as a technical officer in Telecom Australia, now known as Telstra. Over the next 12 years, I had national roles in technical training, support, sales and account management. Prior to starting my business, I spent 11 years with the global company, Nortel. I had several Asia Pacific roles and spent the last four years as a product marketing manager developing and expanding the latest VoIP products. Looking for a role with less travel, the opportunity came up to start my business. Originally, we started in a franchise model but, as we grew, our customers wanted the next level of support. This opened the door to seek our services directly and take out the middleman. Sixfam was born.

What’s the best piece of advice you have received?

There are two that come to mind: “The best customer lead you can get is a referred customer”. (If someone is so impressed with your products and services that they recommend you to their colleagues, it becomes an easy conversation to have at your first meeting. Although our member benefit program is only new, we have already found this with VACC members.) and: “Treat your employees as you would want to be treated”. (Our technical team has been with us from day one when we started nearly 20 years ago. We do not have staff turnover and employees feel engaged and part of the overall solution we provide to our 600-plus customers.)

What is the future of Sixfam?

Sixfam is here to stay. We want to continue growing our customer base and help as many businesses as we can. My son Nathaniel has worked his way up to sales and marking manager. He shares the same values as the team and wants to make sure Sixfam keeps up with the ever-changing technology world. This has opened up the opportunity to do some travelling and leave the business in safe hands. Sixfam looks to stay on top of industry offerings, looking to maintain the core values that’s made it successful today, while offering the latest solutions the industry can offer.

Exclusive benefits for members of VACC.

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 successful referral (excludes existing customers) on eligible Business Banking products and services. Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945.

What are Industries 1.0, 2.0, 3.0 and 4.0?

WORDS Paul Tuzson

FOR the longest time, industry meant human and animal toil. Mud, sweat and old age at 30. Mining had existed for millennia, but production of relatively affordable iron at scale only became possible in Europe in about 1500, with the adoption of the blast furnace. Iron was vital for progress and this could be said to mark the earliest beginning of Industry 1.0, more commonly referred to as The Industrial Revolution.

The number of large frame iron industrial machines grew and in 1712 the first industrial steam engine appeared. By the end of that century and well into the next, steampowered industrial plant grew enormously. Steam also powered trains running on iron, and later, steel rails. Throughout the 1800s steam-powered ships became prominent and more efficient world trade grew. Large scale production of steel from iron became possible with the adoption of the Bessemer Converter in the middle of that century. Steel and metallurgically-controlled iron became vital for the next steps in progress.

In 1859, oil was discovered in Pennsylvania and also in other parts of America and the world. Soon, oil replaced coal for making steam and the invention of the oil-powered internal combustion engine followed. Electric motors were also invented and refined in the 1800s and it wasn’t long before they were widely used in industry and for transport. Mass production followed. By some reckonings, Industry 2.0 began with the adoption of oil for transport and industry, widespread electrification and mass manufacturing from the late 1800s through to perhaps the early 1960s. However,

industrial development has always been a continuous, forward flowing blend of technologies rather than a series of clearly delineated epochs. But for our purposes, that definition will do. Industry 3.0 began with the invention of computers and digital technology in the 1960s. It grew into fully automated manufacturing and probably reached its zenith with the advent of CNC machining, robotics and the digital technology needed to enable it. So, what’s Industry 4.0?

By the early 2000s, computer technology had grown apace and all sorts of digital technologies, including the internet, started to coalesce. Digital communication has since raged through our lives and industries. The internet has become ubiquitous and the Internet of Things (IoT) is set for rapid growth. However, the IoT is seen by many as having mainly a consumer focus; refrigerators, toasters, climate controllers, etc. A more manufacturing focused IoT is embodied in the Industrial Internet of Things (IIoT). Interconnected webs of sensors monitoring all industrial processes are one of the key technologies that enables the IIoT. Sensors used to be relatively large and unwieldy, but advances in micro-machining, nano-technology and signal noise suppression have allowed

Serious mining was the beginning of The Industrial Revolution (top). Steam engines for plant and then train were the next step in Industry 1.0 (above centre). Steam powered ships and world trade transformed the planet (above). Steam turbines driving electric generators for industrial motors signalled a change from Industry 1.0 to 2.0 (left)

sensors to shrink enormously. Now, multifunction sensors with built-in electronics and communications technology can be extremely small and inexpensive.

This means sensors can be, and are, attached to almost every process in an advanced manufacturing environment.

Earlier, larger sensors had to be hardwired to send data back to the appropriate controllers. This was cumbersome, restrictive and expensive. The advent of low-power wireless networks coupled with intelligent sensors has enabled broad networks of sensors that can communicate not only with controllers but also with each other. This is the basis of M2M (Machine to Machine) technology.

The web of acronyms representing the technologies that allow all of this is almost as complex as the technologies themselves.

SCADA (Supervisory Control and Data Acquisition) is a high level acronym that embodies the underlying principle of these

sensor networks. The need for control is easy to understand but data acquisition is also fundamental to Industry 4.0. The thing is, sensor networks gather so much data that humans can’t analyse it. That’s where artificial intelligence comes in. Deep learning in particular is a sub-category of AI that can discern patterns in huge, unstructured data sets and these patterns reveal things about industrial processes and products that help with efficiency, reliability, maintenance and predictability.

CPS (Cyber-Physical Systems) are another important family of components in modern manufacturing. Cyberphysical components are defined as having computational and networking capabilities combined with some sort of interface with the physical world. When connected together and also with digital controllers, which may themselves be interconnected, CPS components combine the digital and physical realms.

Within the current Industry 4.0 era, linking the digital with the physical is fundamental to manufacturing. One example of the advantages is the digital twin. This is a digital, virtual representation of a physical system with which people, or other systems, can interact. These are useful in design and development, manufacturing, maintenance and training. Data from a real world object can be fed into its digital twin to determine operating characteristics, maintenance and failure predictions, reliability, etc.

The CSIRO suggests the digital twin can aid Australian businesses to become digital and gain the benefits of doing so. From the CSIRO website: One of the most significant benefits of digitisation and automation is the ability to customise products at scale. By using digital tools, manufacturers can customise production lines to produce different or bespoke products. This allows businesses to respond quicklyto changing customer demands and preferences. This in turn increases customer satisfaction and loyalty. More on this shortly, but manufacturers need to remember they may be competing in overseas markets as well as locally.

Artificial intelligence plays an increasing role in all areas of our lives, including manufacturing. Generative AI can currently write good computer code and it’s getting better all the time. Recently,

ChatGPT4 was asked to interpret a technical drawing of a simple part and create the G-code needed to machine it. The result was far from perfect but the point is it will eventually be able to do this, and GPT5 is on the way. G-code, for non-technical readers, is the computer language used to control CNC machines. Interestingly, when AI is tasked with designing mechanical or structural components it can often come up with organic-looking designs. The components shown from Spyros Panopoulos Automotive are good examples. The forces present across a piston and in a conrod vary considerably throughout each stroke. Perhaps the strange structure shown is, in fact, exactly the form needed to absorb all those forces. Components

Casting has been integral from Industry 1.0 right through to today (top left). Casting has probably reached its zenith with the Gigapress from IDRA (bottom far left). EDM additive processes minimise waste (bottom left centre). EDM manufactured parts can handle most applications. Parts of this SpaceX Draco rocked engine are EDM printed (left).The Spyros Panopoulos Chaos ultracar is a stunning piece of engineering on the outside as well as the inside. This rod/ piston combination is an example of additive manufacturing at its most innovative (top). A truly beautiful 3D-printed brake caliper from the Spyros Panopoulos Chaos ultracar. Talk about weight reduction (above centre). The Chaos 3D-printed crankshaft (above). The interior of a bone. It’s remarkable how AI generated designs tend to mimic nature (top right). All the data generated by fully interconnected sensors makes the digital twin concept possible (right centre). There will always be a place for subtractive manufacturing and CNC machining (bottom right)

like these are made by processes categorised as additive manufacturing. Historically speaking, manufacturing has been all about taking a piece of raw material larger than the desired result and removing excess material until the final form and size are achieved. This is called subtractive manufacturing. It’s wasteful of materials, energy and time but it remains the most practical way of making many things. Current multi-axis CNC machines have taken the art of removing excess material to amazing levels. The most axes we know about in any CNC machine is 35 in the MultiSwiss TORNOS CNC machine. Between five and 10 axes is more common. The wastage inherent in subtractive manufacturing has long been recognised. Forging was one answer although a degree of post-forging fettling is still time consuming. Sintered powder metallurgy can produce parts that already have their final form. Engine builders will probably remember their first encounter with LS1 conrods back in the early 2000s. Casting is an age old process that also provides parts which often require much less post mould finishing than other manufacturing techniques. While these processes offer advantages over subtractive manufacturing for large production runs, they are not additive.

3D printing is all the rage and a number of techniques qualify under the term. There’s FDM (Fusion Deposition Modelling), which is a material extrusion method. Most amateur machines are of this type; it’s the most wellknown. Vat photopolymerisation, which includes SLA (Stereolithography) and DLP (Digital Light Processing), use UV light to cure and solidify a thick liquid polymer. Laser Sintering is a directed energy deposition process akin to sputtering. Essentially, these techniques create 2D prints that are piled one atop the other to build up a 3D object. The exact amount of material is placed exactly where it’s needed with virtually no waste. EDM and Laser sintering machines are really three-axis CNC machines. Laser sintering creates extremely tough and durable parts, like the SpaceX Super Draco rocket engines. While our focus is obviously automotive applications for additive manufacturing, it’s of interest to note that 3D printed stem cell-based replacement hearts are getting closer to reality as is 3D printed plant-based food. All these techniques will remain part of manufacturing technology. The important point, though, is that under Industry 4.0 they’re digitised, networked and governed by a control system that’s probably not located at the machine itself. Another important part of modern manufacturing is the robot. These have been around for many years (the first was deployed by GM in 1961) and they’re currently employed in unique applications. A company called Machina Labs uses pairs of opposed robots with strong styluses (the heads can be changed depending on what’s required) that push into either side of sheet metal to form raised sections/depressions (depending on the side from which you’re looking). This technology digitises the results formerly created by hand, or, more industrially, in presses. It’s a much slower process than the creation of press-formed parts but it doesn’t require dies, which take a long time to make. This means the results are dependent on design alone and completely customisable in almost real time. That kind of flexibility hasn’t been available in sheet forming. While it’s extremely useful for prototyping and design validation it’s also suitable for shorter production runs. So, we’ve covered where manufacturing has been and where it is currently. What about where it’s going? MIT (Massachusetts Institute of Technology)

To make something, a machine bigger than the part to be manufactured is usually needed. Or, many smaller parts can be made and assembled into a larger composite structure. This involves joining all the subcomponents together, which can introduce compromises and possible paths for failure. CBA is working on a research program in which large components, like aircraft, can be made from much smaller, miniature sub-components placed by miniature robots that are located on the macro component rather than separate from it. The robots are made of the same sub-components that are assembled into the macro components. The robots make as many replicas of themselves as needed to manufacture the macro components in the allocated timeframe. At the end of construction, they simply incorporate themselves into the macro component and disappear. This can result in a macro component with no joins. A wing, for instance, could be created with homogeneous spars and ribs. Car bodies could be made in the same way. As importantly, such macro assemblies could be disassembled and either reassembled into other things or recycled. Neri Oxman is also a professor at MIT in the Media Lab. She’s an architect and biology inspires her work. She sees biologically inspired construction and manufacturing as a way forward; symbiotic combinations of biology and engineering. She and her team have made structures using steered silkworms, bees and ants. Again, such structures can be homogeneous. This leads us to Industry 5.0. What is it?

is one of the best technical education institutes in the world. Everyone attending is in the top one per cent of the smartest people in the US. Because it’s technical it rubs shoulders with industry and manufacturing.

We listened to a fascinating two-hour interview with MIT professor, Neil Gershenfeld (scan the QR code to find it). Gershenfeld is the director of a department called the Centre for Bits and Atoms (CBA), which runs a course on how to make almost anything. Gershenfeld suggests the course is, “Not to make what you can buy in stores, but to make what you can’t buy in stores.... It’s to personalise fabrication.” He believes, as does the CSIRO, that this is the way of the future in manufacturing.

Industry 5.0 is much the same as industry 4.0, but with a different focus. While Industry 4.0 is about automation and efficiency, Industry 5.0 is focused on people, sustainability of manufacturing and operational resilience. Companies have already started to focus on these aspects of manufacturing. As we said initially, the transition from one manufacturing paradigm to another isn’t instant, it’s gradual.

US company Machina Labs makes unique use of robots to create formed sheet products using innovative methods (top & centre). This artist’s impression of the large scale application of the MIT Center for Bits and Atoms’ prediction for robot assembly of uniform parts to create homogeneous macro structures (above)

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MITSUBISHI 4N13, 4N14 & 4N15

VALVE CLEARANCE ADJUSTMENT

2010 - 2019 Mitsubishi ASX XA - XC 1.8-litre 4N13 / 2.2-litre 4N14

2012 - 2019 Mitsubishi Outlander ZJ - ZL 2.2-litre 4N14

2015 - 2019 Mitsubishi Triton MQ 2.4-litre 4N15

Diagram 1 – MIVEC Layout

Diagram 2 – Rocker Control

To test the rockers, remove the plug from the test port, then remove the OFC valve and block the oil passages with STT MB992282, then apply compressed air to the port to actuate the rocker pistons.

See Diagrams 4 and 5 Rocker Piston

Mitsubishi released a new family of ‘clean’ diesel engines for its smallto-mid-sized passenger vehicles and SUVs in 2010. These are the DOHC 16-valve, all alloy, 1.8-litre 4N13 and 2.2-litre 4N14 in the ASX, 2.2-litre 4N14 in the Outlander, and the 2.4-litre 4N15 in the Triton. These engines are the first to use variable valve timing and lift in a passenger diesel engine. This article covers the basic operation and procedure to adjust the valve clearance.

MIVEC Operation

The MIVEC (Mitsubishi Innovative Valve Timing Electronic Control) system is common among Mitsubishi engines. However, the mechanism to operate this feature can be very different.

The 4N1 engine family does not use a phaser on the front of the camshaft sprocket; it uses a hydraulic system to lock the rockers together. This will then engage differently profiled intake lobes, which will alter the timing and lift of the valves. There is no MIVEC for the exhaust valves (see Diagram 1). There are two different modes of operation: low and high speed. In lowspeed mode (below 2300rpm), one of the intake valves is opened by the low-lift cam lobe and the mediumlift lobe opens the other intake valve. As both valves are opened different amounts, this induces a swirl effect in the combustion chamber which

Medium Lift Cam Lobe ‘T’ Lever
Low Lift Cam Lobe
High Lift Cam Lobe

Diagram 3 – Rocker Arrangement

For all engines, check the exhaust valve clearance between the cam and the rocker roller.

assists combustion. This also increases the effective compression ratio of the engine (for easy starting as this engine type has a relatively low compression ratio).

In low-speed operation, the ‘T’ lever in the rocker assembly is not engaged, as the pistons allow it to pass into the intake rockers without effect. See Diagram 4

In high-speed mode (above 2300rpm), the ECU activities the Oil Feeder Control (OFC) valve on the intake side of the cylinder head with a PWM signal (see Diagram 2). Once activated, oil pressure is directed through the rocker assembly into the pistons in each intake rocker. The pistons then block the ‘T’ lever, which runs on the high lift and duration cam lobe. The ‘T’ lever then actuates both intake valves, which increases engine output in high rev ranges (see Diagram 5).

NOTE: The high-speed mode will only engage if the engine coolant temperature is above 20 degrees Celsius and the engine has been running for more than 10 seconds.

NOTE: There is a small filter on the intake side of the Oil Feeder Control Valve which may require cleaning if there is a problem in the system.

Valve Clearance

Valve clearance must be adjusted with the engine cold.

Trade feedback states it is common for the intake clearance to be tight.

Valve clearance interval: 60,000km.

NOTE: Models up to 2016 had a 45,000km interval for the valve clearance. Check the vehicle’s service schedule to be sure.

For the 4N14, check the intake valve clearance between the valve stem and the adjuster.

Disassembly

There are some differences as the 4N13 and 4N14 are fitted east-west, and the 4N15 is fitted north-south. Remove the engine cover.

Remove the sound insulation from around the injectors and common fuel rail. Remove the Exhaust Differential Pressure Sensor, which is mounted on the RH side of the valve cover.

Remove the Variable Geometry Control Solenoid valve, which is mounted on top of the valve cover, and any other hoses and components attached to the valve cover.

Disconnect the wiring harness to the four injectors and any harness brackets so you can move the harness out of the way.

Remove the injector pipes from the injectors and fuel rail, then block all fuel system openings.

NOTE: The injector pipes can be removed and refitted five times before new pipes are required. There is a page in the service and warranty book in the owner’s manual to record the number of times the injector pipes have been removed. If in doubt, fit new pipes. Release the clips for the fuel return lines from the injectors and remove the lines. Record the order in which the injectors are installed as they are programmed to individual cylinders. If they are not refitted in their original positions, you will have to reprogram the injectors to the ECU.

Remove the two injector clamp bolts and discard the washers (see Diagram 8). Remove the clamps and the injectors should slide out of the head. If they are stuck, use special puller MB992289.

For the 4N13 & 4N15, check the intake valve clearance between the cam and the rocker roller.

– Low Speed Mode

Below 2300rpm, the piston allows the ‘T’ lever to pass through the intake rocker.

– High Speed Mode

Above 2300rpm, oil pressure pushes the piston up, which blocks the ‘T’ lever. The ‘T’ lever can now push on the rocker and open the valve using the high lift and duration lobe.

‘T’ Lever Piston
Diagram 4
Diagram 5
‘T’ Lever
Piston ‘T’ Lever
Piston

Diagram 6 – Camshaft Gear Alignment for TDC No.1 Cylinder

Align the two marks together on the camshaft gears, with the top of the timing cover.

Rocker cover sealing surface of the timing cover.

Remove the injector seals from the head with special tool MB992333 and discard. Plug the injector holes. Remove the rocker cover.

Valve Clearance Adjustment

Turn the engine over to align the engine to TDC on the compression stroke for No.1 cylinder. Ensure the timing marks on the camshaft sprockets are aligned to each other and parallel to the surface of the timing cover. The timing marks on the crankshaft and timing cover should be aligned.

Check the valve clearance for the intake and exhaust valves on No.1 cylinder. The intake valves on No.2 and the exhaust valves on No.3.

4N13 & 4N15: Check the valve clearance between the camshafts and the rocker roller for both the intake and exhaust valves.

Intake: 0.08mm ± 0.03 mm

Exhaust: 0.16mm ± 0.03 mm (see Diagram 3).

4N14: Check the intake valve clearance between the valve stem and the adjuster.

For the exhaust valves, check between the camshaft and the rocker roller.

Intake: 0.14mm ± 0.03 mm

Exhaust: 0.16mm ± 0.03 mm (see Diagram 3).

Diagram 7 – Special Lock Nut Tools

NOTE: It is recommended to use MB992852 (which is a feeler gauge with right angle bend) to check the intake valve clearance on the 4N14.

If the clearance is not within specification, loosen the lock nut at the end of the rocker arm, then use the adjusting screw to bring the clearance into specification.

To make it easier to loosen and tighten the lock nuts, it is recommended to use the following special tools:

Intake: MB991477

E xhaust: MB992046 (see Diagram 7).

Once the correct clearance is set, tighten the lock nut while holding the adjusting screw.

Intake Lock Nut: 9.0Nm

Exhaust Lock Nut: 9.8Nm

NOTE: Adhere to the torque specifications for the lock nuts. Excessive torque may cause damage. Turn the crankshaft 360 degrees so No.4 cylinder is at TDC.

Check the valve clearance for the intake and exhaust valves on No.4 cylinder. The intake valves on No. 3 and the exhaust valves on No.2.

Adjust the clearance as required using the steps above.

Reassembly

Clean all sealing surfaces. Install a new valve cover gasket.

These special sockets will allow you to fit a spanner on the hexagon to loosen and tighten the lock nut, while allowing you to have a screwdriver through the centre of the tool to hold the adjuster in place.

Apply sealant to the joints between the timing cover and the cylinder head.

Fit the valve cover and tighten the bolts in sequence in two steps. 1st: 3.0Nm, 2nd: 5.5Nm. (see Diagram 9).

Clean the injectors and injector holes in the cylinder head to ensure there are no carbon deposits on or around the injector sealing surfaces.

Refit the injectors back into their original positions with new seals.

NOTE: Failure to place them in the correct positions will require you to re-code the injectors to the ECU. Failure to replace the seals may lead to the seals leaking combustion gases.

Fit new washers to the injector clamp bolts (see Diagram 8).

Apply engine oil to the thread on the injector clamp bolts, and under the bolt head and washer.

Fit the injector clamps over the injectors and tighten the bolts finger tight until they are seated correctly, and the clamps are horizontal.

Fit the injector pipes to the injectors and fuel rail loosely (see Diagram 8).

Tighten the bolts on the front side of the injector clamp (A) to 1.1Nm (see Diagram 8).

Using an angle gauge, tighten bolts on the rear side of the injector clamp (B) 180 degrees.

Using an angle gauge, tighten bolts on the front side of the injector clamp (A) 90 degrees. The clamps must be horizontal.

Loosen the mounting bolts to the fuel rail, and the flare nut of the supply line from the highpressure pump.

Align the injector pipes to their central axis to the fuel rail and tighten the flare nut hand tight while giving the pipe a shake to ensure it locates correctly on the injector and the fuel rail.

To tighten the injector pipes, it’s recommended to use special tool MB992211, which is a crow’s foot spanner* in two stages 1st: 18Nm, 2nd: 35Nm.

*WARNING: If using a crow’s foot spanner, use the formula on page 4722 in the July 2019 issue of TechTalk to reduce the torque wrench specification so you don’t over tighten the flare nuts.

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NOTE: It is possible to buy fuel pipe spanners which allows the torque wrench to apply torque directly over the axis of the flare nut to avoid the hassle of making calculations.

Once the pipes to the injectors have been tightened. You can now re-tighten the flare nut from the high-pressure pump to the rail to the same tension as the other pipes.

Tighten the fuel rail mounting bolts to 25Nm.

Reassemble all other parts in the reverse order.

Prime the fuel system by pumping the hand pump on the fuel filter until it becomes hard.

With a compatible scan tool carry out the ‘Fuel Leakage Check’ procedure. Start the engine and check for fuel and oil leaks.

Carry out the ‘Small Injection Quantity Learning’ procedure.

Test drive, then check for fault codes and clear or repair as required.

For more information on these engines in the ASX, Outlander and Triton, log on to VACC MotorTech or call the VACC TechAdvisory Service.

Diagram 8 –

Injector Clamp Sequence

When tensioning the injector clamps, it is important to keep them all horizontal.

Diagram 9

Fuel Rail

The easy-to-use diagnostic tool comes softwareenabled, providing auto-detection, top-range health reports, monthly updates and more.

Seamlessly integrates with VACC MotorTech, saving time diagnosing many technical issues.

Flexible payment plans, available in-house with no interest or fees.

OurAuto Diagnostic Tool

Becoming a VACC or TACC member opens up a wide range of special offers and discounted products and services for you and your business. VACC and TACC have collaborated with organisations which provide essential services to your business to offer special low rates for members. Couple the savings from discounted products and services with the subsidised services which VACC itself offers to members, and your annual membership can easily pay for itself. Everything from IR advice, to cheaper EFTPOS terminals to technical solutions is on offer. This guide gives you an idea of the offers which you can access, as well as a number of other collaborations.

Workplace/IR Advice

Members can access services including a call centre for employment-related questions, a web page with award rates and policy and employment fact sheets, writing of employment contracts, handbooks and policies, and member and industry representation.

03 9829 1123 ir@vacc.com.au vacc.com.au

Auto Apprenticeships

VACC takes the hassle out of hiring trainees and apprentices, as businesses are matched with high quality candidates who meet strict selection criteria. VACC also looks after all administration aspects of the apprenticeship, including visits by Field Officers.

03 9829 1130 autoapprenticeships@vacc.com.au autoapprenticeships.com.au

Technical Information

VACC MotorTech brings together VACC’s Tech Online, Times Guide, Tech Estimate, Technical Advisory Service and Tech Talk products with Haynes’ international know-how, to provide an enormous amount of technical service and repair information to subscribers.

03 9829 1268 info@motortech.com.au motortech.com.au

Health Insurance

nib has a mission and vision of people enjoying better health. VACC and TACC members (including their staff) receive a corporate discount on nib’s retail health insurance products.

1800 13 14 63

OurAuto iStore

Businesses can purchase a wide range of items, including personalised stationery, consumables such as floor mats and seat covers, workplace safety signage and much more. Member businesses automatically receive a discount on purchases.

03 9829 1152 ourautoistore.com.au

Website Services

OurAuto Digital provides a one-stop solution for your business’ website, including a custom design, rendering for smartphones and tablets, email accounts and hosting. Businesses are able to update web content themselves. VACC and TACC members receive these services at a discounted rate.

1300 687 288 ourautodigital.com.au

Eiffel Lubricants

A market leader in lubricants, and distributes a range of effective and safe automotive products for maintenance and care of all types of vehicles.

03 9394 1079 eiffellubricants.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.

1300 013 341 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

Freight Services

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

AutoCareers

The AutoCareers jobs portal connects jobseekers with employers wanting skills and labour. VACC and TACC member businesses can advertise qualified and apprenticeship vacancies free of charge.

03 9829 1133

autoadvice@vacc.com.au autocareers.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.

03 9829 1117 environment@vacc.com.au greenstampplus.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

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.

03 9829 1167

accreditation@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

Sixfam

Sixfam is an experienced Telecommunications Service Provider, built on the basis to help ease the frustrations of small to medium businesses in Australia.

03 9200 2800 sixfam.com.au

Apprentice Helpline

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

Advertise here!

Partner with VACC and TACC, connect with 5,000 members. Call

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 statewide, 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

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.

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