october/november 2001 - Australian Automotive Aftermarket Magazine

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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
Page 1: THE OFFICIAL MAGAZINE OF THE AUSTRA
Page 5 and 6: RETAIL AUTOPRO TARGETS NEW MEMBERS
Page 7: products 3 CATALOGUES TOGETHER Road

october/november 2001 - Australian Automotive Aftermarket Magazine

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