october/november 2001 - Australian Automotive Aftermarket Magazine

THE OFFICIAL MAGAZINE OF THE AUSTRALIAN AUTOMOTIVE AFTERMARKET ASSOCIATION
OCTOBER/NOVEMBER 2001

President’s & Executive
Director’s Report...................4
Calendar .............................48
New Members....................48
REGULAR
DEPARTMENTS
NEWS ...................................7
TRADE TALK .......................18
RETAIL ...............................20
PRODUCTS..........................41
PEOPLE...............................41
RACE ..................................44
E-COMM ............................45
PERFORMANCE...................46
BUSINESS OPPORTUNITIES.50
STANDARDS ......................50
IN THIS ISSUE
17 PBR’S BANKSIA
PARK BRAKE
MMP DOUBLES
PRODUCTION
Australia’s largest independently owned
aerosol packer, MMP Brands, is to double
its factory output by substantially upgrading the
company’s plant in Mulgrave, NSW.
PRORACK SUCCESS
CONTINUES
24
SEATS IN FULL
PRODUCTION
36
PBR'S JETSTREAM ROTOR SYSTEM.
Australia's best replacement disc rotor isn't a rotor at all ? it's a system.
That's because the best disc rotor is the one that performs best with the other
brake components, the pads, bearings seals, calipers and actuation system.
PBR know this from its 70 years experience in the aftermarket and more than
30 years developing and testing OE braking systems for Australian cars.
OCTOBER/NOVEMBER 2001
FEATURES
17
UNFAIR
DISMISSAL
26 LAWS TO
ASSIST
EMPLOYERS
FRANCHISING
CODE
CHANGES
EXCLUSIVE
6
From Repco
to PacAuto
and now APG
38
PRODUCT TEST:
Ignitor
conversion
REPCO’S NEW
C STORE
36
13
28
19
CONTENTS
Executive Editor Kim Elliott
Editor
Derek Pickard, Tel 0419 388 075
Advertising Manager
Janene Gooding, Big Red Advertising,
Tel 61 3 9397 3587
Production & Design
Brigid Fraser, Tel 61 3 9596 2285
The Australian Automotive Aftermarket magazine
is the official publication of the Australian
Automotive Aftermarket Association (AAAA).
Published by
The Australian Automotive
Aftermarket Association
Suite 11 622 Ferntree Gully Road
Mulgrave Vic 3170
ABN 23 002 271 454
Telephone (03) 9561 7044 Fax (03) 9561 7066
email: info@aaaa.com.au web: www.aaaa.com.au
All material appearing in Australian Automotive Aftermarket magazine
is copyright. Reproduction in whole or in part is strictly forbidden
without prior written consent. Contribution: Freelance contribution and
submissions are welcomed by this magazine. No responsibility is
accepted for unsolicited manuscripts, photographs and transparencies.
The opinions expressed by contributors are not necessarily those of
the AAAA.All statements made, although based on information believed
to be reliable and accurate, cannot be guaranteed and no fault or
liability can be accepted for error or omission. The publisher reserves
the right to omit or alter any advertisement and the advertiser agrees
to indemnify the publisher for all damages or liabilities arising from
the published material.

EXCLUSIVE
From Repco
to PacAuto
and now APG
New
Top
Player
After months of speculation, the newly
formed Automotive Parts Group has
become the owner of the previous Pacific
Automotive business which was sold by Pacific
Dunlop for $251m.
The new company is now the owner of
Repco Australia and New Zealand,
Motospecs, Appco, Ashdown, Carparts and
the Distribution Centres.
The Automotive Parts Group (APG) is
owned by a consortium which includes
Gresham Private Equity, GS Private Equity
and Macquarie Direct Investment. The majority
of the equity is split between those
investors with an additional equity being held
by the existing management team. The directors
are: Peter Mummery (Managing
Director), Michael Brown (Non-Executive
Chairman), Paul Evans (Gresham), Greg
Minton (GS), Robert Backwell (Macquarie)
and another from the current APG management
team (t.b.a.).
The APG management team is Peter
Mummery (MD), Peter Cooper (Chief
Financial Officer), Gary West (GM, Strategy &
Business Development), Catherine Saunders
(GM Human Resources), Bob Wyeth (GM
Merchandise & Marketing), Jeff Taylor (GM,
Repco NZ), Brendan Redmond (GM, Repco
Australia), Les Healey (GM, Ashdown),
Trevor Garrard (GM, Motospecs), Neil
McBain (GM, Carparts), Mike Bergin (GM,
Distribution & Logistics) and Rod McKenzie
(GM, Property).
Managing Director, Peter Mummery told
Automotive Aftermarket magazine: “This is a
new era for the business. We’ve got a good
buy at a price that enables significant reinvestment
by both acquisition and development.
The working capital of $68.5 million
that’s been put in is more than adequate to
Peter Mummery:
“We’ve got a good
buy.”
improve operational
efficiency
and fund future
expansion.
“The new
stand-alone status
allows a more
determined focus
on core business
principles. There
was much speculation
on the future
of the individual
business units, but
in reality, the strength of the combined businesses
makes the group so attractive.
“This more integrated focus for the core
operating divisions will deliver greater efficiencies
and cost savings that will ultimately
benefit trade and retail customers. Already
the return of our Distribution Centres has
resulted in significant improvements in our
fill rate to the stores and we expect similar
improvements to be realised across the business.
“The on-going commitment of our executive
management team as shareholders
reflects the positive working relationships we
developed with the consortium. And that consortium
is fully supportive of our on-going
commitment to our trade customers and our
aggressive retail strategies from which we
expect significant growth.”
Mummery says the problems of the past
are behind the business and insists the flat
profits of recent years were the result of management’s
growth plans taking longer than
initially planned. He cites the difficulties of
closing of 13 Distribution Centres in the last
18 months as an example of the right moves
being made but the timing being drawn out.
As regards market share, APG now has 7%
of retail and 18% of trade in Australia. This,
Mummery says, will improve on both fronts.
He insists the retail market has the room for
the new major players now operating and his
company’s range of sites and new retail plans
will make Repco competitive. There is no
intention of major cuts in the number of
News
First Repco, then
Pacific Automotive
and now Automotive
Parts Group.
Derek Pickard has
the story on the
management buy-out.
Repco outlets and the present level of just
over 300 will remain for the next two years.
There will be, however, a greater concentration
on many of those sites being involved in
a cultural change to ensure they fully address
the needs of both trade and retail customers.
Also, as more new format retail stores come
on line, the number of traditional Repco outlets
will reduce.
“Our 18% share in trade can be improved
even though it’s a flat market. The improvement
is because over 40% is still in the hands
of those outside the organised trade suppliers.
We’re better able to meet the needs of
customers in the business to business area
and become the preferred supplier.
“Our cost position is still to high and
mainly in two sectors of operations: distribution
and I.T.” Mummery believes greater efficiency
in both must be achieved while still
looking after customers: “These efficiencies
don’t relate to a reduction in head count. In
fact, our employee numbers are planned to
grow.”
Additionally, there are no plans to pull out
of any areas where the company operate with
two channels that may appear to be in conflict:
“We are a leading player in all channels
to market and will develop on that with our
customers as the prime focus. Our strategy
includes our scale advantages in procurement,
I.T., finance and distribution.
“The future for us also includes all business
units being restructured to suit the cultural
diversification of each business while
taking advantage of the scale of the total
group.”
On overall staff numbers, Mummery
expects a gradual growth due to the plans to
expand the number of larger retail stores.
“Our Repco brand is among our top
strengths. It’s been allowed to go to sleep but
will and is being awakened. I’ve every confidence
in this being achieved and the expansion
in our marketing spend is part of that
growth.”
AUTOMOTIVE AFTERMARKET OCTOBER/NOVEMBER 2001 3

hot gossip
The sale by PacDun of its PacAuto business to
the newly formed Automotive Parts Group
(APG) has put an end to a busiest era of hot
gossip. The new company includes all the previous
components of PacAuto now being
wholly owned by APG.
Observers say $251m was a good price for
APG to pay and the freeing of the management
from its previous parent should see
interesting results.
Marlows’ Ray Della-Polina has received an
Ernst & Young regional Entrepreneur of the
Year Award. He is now in the running for a
national award in the Retail, Consumer and
Industrial Products category.
Autopro has got serious about recruiting
new members to boost its already impressive
total of nearly 200 independent stores. The
company is now actively promoting itself to
various prospects.
Speco Thomas has launched its website
(www.speco.com.au) which is in full colour
and the product information downloads up to
70 pages on VHT paints, Specometer gauges
and various accessories.
Pedders has opened a Dealer in Cessnock
bringing the company’s total number of outlets
to 105.
RSP metal press shop is not only making
parts for the auto aftermarket, it has recently
expanded into prototypes for industrial applications.
Paja has developed a replacement bush for
the power steering in EA to ED Falcons.
Auto One’s new web site is now functioning
as both a customer service tool and a link for
stores and national support/distribution. The
address is www.autoone.com.au
Delphi reports its first year in the aftermarket
to be going great guns. Sales have picked
up five times in the last two quarters.
Gates is launching a Stant thermostat sales
program which involves specially designed
merchandisers in retail and fitter outlets.
DBA’s exports continue to go well but the
company no longer boasts about what it’s
selling to where: “We’re not giving any more
leads to our Asian competitors,” a company
spokesperson said.
Graham Oliver has joined Roadsafe Victoria
handling sales.
EBC Brakes reports it has signed a supply
deal for Autobarn’s 97 stores.
Holden’s new generation V6, which is due
to go into local production during 2003, is
planned to be used in many brands that
include Saab and Alfa Romeo which now all
come under GM influence.
Bendix Mintex is now number two in the Auto
Partners incentives scheme behind Century
Batteries.
News
TARGET PARTS
PROMOTION
With the Holden Target Parts Challenge
2001 promotion final draw concluded,
the company says it can report a very successful
campaign that captured the participation
of over 170 Holden Dealers and their trade
customers throughout the nation. In fact,
around 20,000 trade customers registered as
participants in the promotion through Target
Parts purchases.
While some of the big winners have
enjoyed their adventure weekends for four
people of thrills and spills with white water
rafting, absailing, rock climbing or other less
strenuous pursuits, many others are cashing
in their Target Parts points from the Go for It!
selection of fine gifts on offer.
The event known as the mini
Summernats - the Lukey Performance
Exhausts Kalbar Autofest - hit new heights
in 2001 with a record number of entries
and a bumper crowd. It ran from August 31
to September 2 at Kalbar, 100 kilometres
southwest of Brisbane, attracted more than
600 entrants and an official attendance of
16,800.
With Lukey Performance Exhausts as
major sponsor for the first time, the
Autofest featured a full range of events
including the Dyno Competition, two grass
driving events, the Biggest Wheel Stand
competition, Show & Shine, Go to Whoa
and the ultra-popular Burnout
Competition.
Just as popular as the cars were the
famous Lukey Girls. Not only did they pose
for countless photographs, they were also
The successful
key to
this style of
promotion
was anyone
could win.
Small workshops,
no
matter who or
where, they
had the same chance to win as the bigger
operators.
For those workshops that have redeemed
their Target Parts points, collected at 1
point for every dollar invested in Target
Parts during the promotion, they have
reaped rewards including hats, caps and
stubby holders to major prizes including
stereo systems, cameras and the latest
deluxe coffee machines.
STOPPING A CHAINSAW
Fitters saving Bosch Brake Pad box tops
are now eligible for a new Bosch chainsaw
or a high pressure cleaner. The company
started this promotion in August and says:
KALBAR AUTOFEST GROWLS
The Automotive Parts Group is
Australia and New Zealand’s leading
parts and accessories wholesaler and distributor,
operating under the divisions:
Repco Australia, Repco New Zealand,
Ashdown, Motospecs and Carparts. There
is a total of 3,900 employees, operates 11
Distribution Centres and 406 trade and
retail outlets.
Gresham Private Equity is a leading
“The response has been tremendous. Our
asbestos-free brake pads are premium quality,
long life and are well accepted in the market
place.”
busy handing out Lukey stickers, with
20,000 being snapped up by the crowd over
the three days.
Carline, Australia’s largest group of
exhaust specialists, were also in attendance
and spent the three days promoting Lukey
and fielding thousands of questions about
performance exhaust systems from a crowd
full of enthusiasts.
APG - THE NEW OWNERS
Australian private equity investor specialising
in management buy-outs and expansion
capital transactions.
GS Private Equity is part of the Grant
Samuel Group which has extensive experience
in private equity investing.
Macquarie Direct Investments is one of
Australasia’s leading private equity investment
groups and is a wholly owned subsidiary
of Macquarie Bank.
4 AUTOMOTIVE AFTERMARKET OCTOBER/NOVEMBER 2001

RETAIL
AUTOPRO
TARGETS
NEW
MEMBERS
Grant Jarrett
The Autopro retail stores chain has
formulated a plan to ensure continued
growth by giving it a tangible edge
in member recruitment. This, the company
says, will make it the fastest expanding
auto retailer: “We’ve the asset of
being the largest group of independent
auto parts and accessory retailers in
Australia and we’re also a division of the
biggest auto parts wholesaler, Carparts
Distribution.” Says Autopro Manager
Grant Jarrett.
“Our numbers are now nearly 200
stores spread over all mainland states
which positions us right up as a major
force. We’ve got the size and, better still,
the support of a huge parent organisation
to properly back our planned
growth.
“We realise maintaining our position
means including an aggressive expansion
component to our plans and that’s
exactly what we’ve developed.”
Jarrett says Autopro’s management
and its National Dealer Council have
worked together to formulate the new
strategic direction which is now being
implemented: “Among our plans is a
sharp focus on attracting new members.
This will be successful not only because
of our size and excellent track record,
but also the way we develop that
ensures we deliver good businesses for
all our members.” Jarrett said.
He cites his group’s advantages as
including the low membership fees,
innovative marketing fund, decentralised
advertising system, Autopro
Support Centre, Autopro Car Care
Program, and the development of a core
suppliers and products.
Enquiries should be made to Grant
Jarrett 0411 249 474.
SCA’s MOVE SOUTH
Derek Pickard talks to
Bob Thorn on the day of his
big opening in Melbourne
The opening of 6 stores in the one day - to
go from nowhere to a respected presence
in Victoria - is the major talking point of retailing.
Super Cheap Auto says its total investment
for the new Victorian stores is all part of the
company’s on-going plan which will see it
emerge as a major player nationally.
“Right now, with these new Melbourne
stores, we’ve got a total of 79,” says the company’s
Managing Director Bob Thorn. “It’s all
part of our overall expansion which will see us
have 100 stores and $200 million in sales for
June 2002, growing to 200 stores for $500
million in sales by June 2005. Those are our
goals and we’re well on the way to achieving
them.
“The Victorian market is critical to us. Our
target here is over 40 stores in three years.
We’re talking of a $35 million investment that
will eventually employ up to 600 people. This
year, for example, we’ll be opening more very
soon which will see the total in this state reach
20 by the end of the December. That’ll then
bring our national number to 93.
“They’re all company owned stores and
around half are freehold sites. Such a basis of
operation has always been our approach and
we wont be changing.
Bob Thorn outside his new Rowville store.
“Nor will we be lowering our standards of
layout. A typical SCA store is around 800
metres and has around 10,000 SKUs which
includes power tools and hardware. Around
70 percent is traditional automotive business
with our customers running at about 70 percent
male and 30 percent female.
“We won’t be altering the way we keep
seeking unique items for our stores and the
present rate of 30 percent of the present business
being imported by ourselves may well
increase.
“Above all, our expansion plan will be continuing
at its present pace and we won’t be
slowing. Every goal we’ve ever put down,
we’ve achieved.
“What we’re doing here in Melbourne is
typical of our approach. To our knowledge,
we’re the first Australian company to launch 6
stores in one day. As such we’re making retail
history. And that’s going to continue.
MARLOWS EXPANDS
IN MELBOURNE
Marlows Auto Parts and Accessories
took its store count to 19 sive 13,500 products ranged. Some of the
with the layout of the store and the exten-
when opening the latest store at
Werribee Plaza Shopping Centre in
Hoppers Crossing, Melbourne, during
August.
Nearly 1700 customers withstood
some terrible weather over the first weekend
to take advantage of the opening specials,
with most customers impressed
opening activities had to be cancelled due
to the weather but customers took advantage
of sausage sizzles, car washes and
visiting race and drag car displays.
Hundreds of supplier prizes and samples
were up for grabs, with most customers
taking something home with them.
Trading from just over 670m with an
additional workshop
for vehicle servicing,
the store gives local
car owners a convenient
one-stop auto
shop in a handy central
location.
(Marlows now has
4 stores in Victoria
with plans on the
board for another
store this financial
year.)
Marlows new Victorian Store
5 AUTOMOTIVE AFTERMARKET OCTOBER/NOVEMBER 2001

NEW RALLY PRO
PERSONALISED
PROTECTION
In response to calls from consumers wanting
engine oil that provides greater protection
under specific driving conditions or for specific
vehicle types, the Shell Helix range of engine
oils now includes some additional products
dubbed the Personalised Set.
The packs feature bold icons on the front
labels which clearly indicate the application for
which the oil was designed and incorporate the
new easy pour spout.
The complete Shell Helix Personalised Set
An upgrade to more attractive packaging
makes the new Series 500 Quik-Dry range
stand out.
Already a leading seller in many store chains,
the new packaging sees the well respected topof-the-range
Series 500 brand become more
noticeable. The distinctive high contrast of gold
on black is now joined by bold colours and easy
identification.
Series 500 Quik-Dry is available in 16 top selling
colours with 250gm aerosol, 100, 250 and
500ml brush-on paints as well as 250 and 500ml
SAAS has released the Rally Pro seat, made by Auto Concepts in
Melbourne. The all new competition seat is the result of testing and
development and features a high side shape for maximum support and
protection, purpose-designed new strong steel frame and the latest
oval harness apertures. The benefits also include extra padding
and increased lumbar support.
It is styled to appeal to a wide range of drivers because the
attractive shape is covered in a range of strong colours: red,
blue, black, yellow and grey - all in strong heavy duty fabric.
Contact (03) 9545 0044.
is comprised
of: Plus
Sport 50
(25W-70),
Plus Eco 10
(10W-30),
Super City
(15W-40),
Super Older
Engines (25W-60), Diesel
Super (15W-40) and Super LPG (15W-40).
SERIES 500 QUIK-DRI PACKAGING
UPGRADE
SHADES FOR SUMMER
paint stripper.
“We’ve given
this high quality
and competitively
priced
paint range a
real packaging
lift which is a
push to ensure it
moves off the shelves,”
says Robert Healey of MMP Brands.”
Contact 02 4577 6977.
Pennzoil-Quaker State Australia
has released a new line-up of
Auto Fashions windscreen shades. A
myriad of new design features in the
new range include a substantial
increase in length and width for all
accordian styled shades. This increase
in size was introduced to accommodate
the ever growing size of modern car
windscreens. A further added safety feature
is the fitting of unremovable suction
6 AUTOMOTIVE AFTERMARKET OCTOBER/NOVEMBER 2001
DISPLAYING
THE LION
The Lion brand has recently added a
range of merchandisers which have
been successfully market tested. The
line-up includes a maxi-electrical, minielectrical,
terminals, and tyre and wheel
bar. Other merchandisers are planned to
be added. The displays are designed to
attract consumers to each product
group.
The merchandisers are durable,
space saving and measure 44x90cm
with most having 36 products on
display. They are provided free with
a half or full merchandiser stock purchase.
The company says its 4500 sq mt
distribution centre in Melbourne now
stocks around 2000 line items with a
98% supply rate.
For a catalogue, contact
(03) 9761 6199.
TURTLEWAX
FOR METALS
New TurtleWax Metal & Chrome
Polish is claimed to be the simple
way to produce a wet look shine on all
chrome and polished metal surfaces.
This new product is as easy to apply
as a liquid wax. Using a blend of special
solvents, the polish removes tar and
grime, cleaning surface contaminants
as it polishes. Using especially hard
and small polishing agents, it offers
deoxidising power on all metals from
the hardest to the softest. A wax blend
provides corrosion protection without
giving atmospheric oxygen the opportunity
to react with newly polished metal.
Contact 1300 555 205
cups on the entire Auto Fashions sun
shade range.
An amusing addition to family cars
with babies or children on board, the
Baby Looney Tunes rear window shade is
as entertaining as it is functional to protect
children from the harmful rays of the
summer sun.
Contact 03 9832 1600.

products
3 CATALOGUES
TOGETHER
Roadsafe has released its latest catalogue
which is three in one. This new edition
shows at a glance fitments for CV joints, CV
boots and the complete driveshaft.
The company’s CV joint kits consist of a
CV joint (by GLO of Italy), grease sachet and
2 stainless steel clamps. The boots are 100%
neoprene for maximum durability. The driveshafts
are remanufactured by Roadsafe (Vic)
HD FILTERS & WIX
CATALOGUES
Heavy Duty Filters has
announces the release
of two new catalogues to
service the growing heavy
duty filtration market in
Australia.
This easy to use Heavy
Duty and commercial catalogue
features combined
application and cross references,
with more than 120
new listings.
AERO UTE LINER
Mackay has released its
2001 Automotive
Bush and Mount
Catalogue. This edition
provides full coverage of
engine mounts, strut
mounts, rubber and
Suretrak (polyurethane
bushes), pedal pads and
exhaust mounts. With over
600 new part numbers
added, including over 100
engine mounts, this catalogue
offers what the
maker describes as the
An OEM supplier reference
section is also included
and 69 new Wix Filters
product listings are also featured.
The catalogue is also
available on CD-Rom for
ease of computer based referencing.
All superseded
part numbers are included
along with the Wix Filters
warranty statement.
Contact 03 9310 1722.
with a 3 year 60k warranty where a new out CV
joint is always fitted with the inner reconditioned
or replaced. (New GLO parts used.)
Stocks of most popular models are also carried
by Roadsafe (Qld). The boot kit is a
100% neoprene boot, 2 stainless steel clamps
and a grease sachet.
MACKAY’S NEW CATALOGUE
Aero Liners are now available in
Australia from Bushranger Auto Gear.
Constructed from 8mm thick, high-density
polyethylene, the material incorporates an
exclusive additional layer of UV resistant
protective polymer to safeguard against
cracking, blistering or degradation.
Fitting is without any drilling and existing
paintwork is protected against chaffing
and abrasion by Aero Tape. This is used to
complete range of products
in one easy to find catalogue.
All cross-reference and
application data have been
updated. An extensive photo
guide as well as new dimension
charts on pedal pads,
shock absorber bushes and
shackle bushes have also
been added.
To request a printed or
CD copy, contact
catalog@mackaycon.com
.au or fax 03 92768882
separate surfaces that could otherwise rub
against each other under constant loading
and unloading. The Tailgate protector also
comes as a no-drill design and includes an
exclusive bottom edge finishing trim. A special
feature are the tie down hooks which
are standard on most models. These provide
strong anchorage points and are tested
to over 250kg.
Contact 02 9792 2566
People
TETROSYL GM
Tetrosyl UK has opted
for in-depth experience
in management,
marketing and manufacturing
in its appointment
of a new General Manager
for its Australian subsidiary.
High profile industry
executive, Graeme
McLean, has taken up this
appointment and is already assessing all
aspects of the business activity.
“The range and quality of the Tetrosyl
and CarPlan sales programs are exceptional
and some sound work has been done already
in the Australian market,” said McLean. “We
have an exciting time ahead of us with the
great new ranges and products to launch
over the next few months as we continue to
build the profile and achieve new goals.”
AUTO CONCEPTS
Martin Wells has joined Auto Concepts
looking after National Marketing and
Queensland sales. He is based in
Queensland.
The new position sees him return to his
native Queensland after some time in
Melbourne where he worked for Autobarn.
Prior to that Wells was with Super Cheap
Auto and Century Yuasa Batteries.
“I’m looking forward to developing sales
strategies and new products with Auto
Concepts. The position is an exciting one for
me as it blends marketing with sales for an
ever expanding product range,” Wells said.
PBR MARKETING
PBR has appointed two additional staff
within the Aftermarket division of its
brake and clutch sales organisation.
Claire Branson has joined the
Queensland office as State Manager, reporting
to Chris Hatton, GM Sales and
Marketing. Responsible for the development
of the Queensland market and the daily
operations of the branch, Claire brings to
PBR, extensive experience in terms of major
account management and development.
Josh Selwood has started his career with
PBR as a sales representative within the
NSW office, reporting to Simon Parsons,
State manager for PBR in NSW. Josh joins the
team after significant achievements as a sales
professional outside the automotive industry
and will be responsible for the delivery of
sales and marketing support in NSW.
AUTOMOTIVE AFTERMARKET OCTOBER/NOVEMBER 2001 7