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The Society of the Irish Motor Industry

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INdUSTRY<br />

IrIsh <strong>Motor</strong><br />

ManageMent<br />

<strong>the</strong> soCIetY oF <strong>the</strong> IrIsh <strong>Motor</strong> InDUstrY JUlY/aUgUst 2008<br />

Managing <strong>the</strong><br />

challenges<br />

ahead -<br />

interview with<br />

director general alan nolan<br />

Building an opel<br />

Used car sales<br />

aftermarket<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 1 ]


SIMI disappointed at reporting on wage round<br />

Members will be aware that SIMI does not normally get involved in<br />

public debate regarding industrial relations in <strong>the</strong> industry, preferring<br />

to carry on our own strategies quietly in a business-like manner.<br />

We were, though, hugely disappointed at comments, attributed to<br />

<strong>the</strong> trade unions in media reports, which appeared to suggest that<br />

<strong>the</strong> SIMI Wage Agreement was achieved in <strong>the</strong> aftermath <strong>of</strong> <strong>the</strong><br />

breakdown in <strong>the</strong> national negotiations between <strong>the</strong> social partners<br />

and that it was in some way a return to local bargaining. At very best<br />

this is inaccurate.<br />

SIMI has never been a part <strong>of</strong> <strong>the</strong> National Agreement mechanism<br />

involving <strong>the</strong> o<strong>the</strong>r social partners but we have been committed<br />

to our own <strong>Motor</strong> <strong>Industry</strong> National Agreements for almost thirty<br />

years now. Even when <strong>the</strong>re were no agreements reached between<br />

<strong>the</strong> o<strong>the</strong>r social partners and free-for-all bargaining ensued, SIMI<br />

continued to negotiate National <strong>Motor</strong> <strong>Industry</strong> Agreements. Our<br />

current agreement has to be seen in this context; part <strong>of</strong> a national<br />

system that has continued unbroken for just on thirty years.<br />

<strong>The</strong> current round was actually negotiated in <strong>the</strong> first quarter <strong>of</strong> <strong>the</strong><br />

year, having carried over from 2007, <strong>the</strong> agreement being an interim<br />

one, pending <strong>the</strong> outcome <strong>of</strong> <strong>the</strong> national talks between <strong>the</strong> social<br />

partners, which would clearly influence <strong>the</strong> shape <strong>of</strong> our own final<br />

agreement. Our interim agreement was actually finalised before <strong>the</strong><br />

national talks even commenced discussions on <strong>the</strong> wage increase<br />

element, so to portray it as a consequence <strong>of</strong> <strong>the</strong> collapse <strong>of</strong> <strong>the</strong><br />

o<strong>the</strong>r talks is very far from reality.<br />

What is most disappointing is that <strong>the</strong> comments completely ignore<br />

<strong>the</strong> timing involved. Our agreement was ratified by our National<br />

Executive Council much earlier in <strong>the</strong> year at a time when <strong>the</strong><br />

economic and trading outlook was not as challenging as it has<br />

now turned out to be. While <strong>the</strong> industry values <strong>the</strong> stability that<br />

our National Agreements provide, it is clear that <strong>the</strong> trade unions<br />

CONTENTS<br />

<strong>The</strong> <strong>Society</strong> <strong>of</strong> <strong>the</strong> <strong>Irish</strong> <strong>Motor</strong> <strong>Industry</strong><br />

5 Upper Pembroke Street, Dublin 2.<br />

Tel: 01 - 6761690 Fax: 01 - 6619213<br />

Email: info@simi.ie<br />

Web: www.simi.ie<br />

President: Paul Flanagan<br />

Castrol Ireland<br />

Deputy President: Mike Finlay<br />

Honorary Treasurer: Tony Maher<br />

Gowan Distributors<br />

Director General: Alan Nolan<br />

Editor: Bernard Potter<br />

Commercial Director: Rebecca Markey<br />

Design: Niall O'Brien<br />

Production<br />

Ciarán Brougham<br />

Martin Whelan<br />

Michael Ryan<br />

Barry Sheehan<br />

Financial Director: Mai Markey<br />

Accounts: Tricia Murtagh<br />

Administration & Subscriptions: Zara White<br />

Photography: Daniel White, Dave Cullen<br />

Printing: Walsh Print<br />

Chief Executive: David Markey<br />

Publishers: IFP Media Limited<br />

<strong>Irish</strong> <strong>Motor</strong> Management<br />

31 Deansgrange Road, Blackrock,<br />

Co Dublin<br />

Tel: (01) 2893305<br />

Fax: (01) 2896406<br />

Email: paddy@ifpmedia.com<br />

<strong>The</strong> views expressed in this magazine should not<br />

be interpreted as <strong>the</strong> <strong>of</strong>ficial policy <strong>of</strong> <strong>the</strong> SIMI or<br />

<strong>of</strong> IFP Media Limited, nor does <strong>the</strong><br />

publication <strong>of</strong> product information or any<br />

advertisements imply <strong>the</strong><br />

recommendation <strong>of</strong> <strong>the</strong> SIMI.<br />

Copyright IFP Media Limited 2008.<br />

No part <strong>of</strong> this publication may be<br />

reproduced in any material form without express<br />

written permission from <strong>the</strong> publishers.<br />

5<br />

SIMI News<br />

New car sales up for July.<br />

12<br />

Statistics<br />

2008’s top sellers.<br />

14<br />

<strong>Industry</strong> News<br />

Portugal and Renault Nissan<br />

Alliance in zero emission<br />

partnership. Merlin launch<br />

two-lane auction system.<br />

20<br />

director General<br />

Interview<br />

Alan Nolan, Director<br />

General, SIMI discusses key<br />

issues facing <strong>the</strong> industry.<br />

would face a far greater challenge delivering any agreement on a<br />

wage increase in our industry today, than was <strong>the</strong> case when this<br />

agreement was negotiated.<br />

As an industry we have faced <strong>the</strong> problem <strong>of</strong> comparisons with<br />

enormously inflated craft rates available in o<strong>the</strong>r sectors over recent<br />

years and we have at all times worked hard to avoid <strong>the</strong> trap <strong>of</strong><br />

pricing people out <strong>of</strong> jobs by agreeing unrealistic rates. Yet at <strong>the</strong><br />

same time we need to value our technicians and reward <strong>the</strong>m to <strong>the</strong><br />

degree that we can continue to attract and retain top class people in<br />

our industry.<br />

It was in this context that we took <strong>the</strong> innovative step <strong>of</strong> negotiating<br />

a National Agreement for our industry on total package ra<strong>the</strong>r than on<br />

basic, including a potential bonus element that should deliver good<br />

earning potential for technicians when <strong>the</strong>y are working efficiently<br />

and <strong>the</strong>re is a supply <strong>of</strong> work available. This model provided us with<br />

a more sensible approach than <strong>the</strong> excessive rates that may have<br />

been implemented in o<strong>the</strong>r sectors. Although <strong>the</strong> agreement on<br />

bonus earnings was finalised over two years ago with <strong>the</strong> final phase<br />

implemented in 2007, it appears to have been cited, misleadingly,<br />

as an additional concession in <strong>the</strong> current round that would have<br />

increased <strong>the</strong> percentage value <strong>of</strong> <strong>the</strong> Agreement.<br />

Having to deal with this is particularly disappointing at a time when<br />

we are facing very serious challenges in our industry, particularly<br />

<strong>the</strong> falling values <strong>of</strong> used cars in stock and, most important <strong>of</strong> all,<br />

seeking to ensure that dealers can clear current stocks in preparation<br />

for January 2009. I would have preferred if this editorial could have<br />

focused on those issues but it was important for us to ensure that <strong>the</strong><br />

record is put straight on <strong>the</strong> wage round issue.<br />

Alan Nolan, Director General<br />

23<br />

Aftermarket<br />

Aftermarket sector news.<br />

30<br />

New vehicles<br />

<strong>The</strong> latest on new vehicles.<br />

32<br />

SIMI Training Courses<br />

September/October courses.<br />

33<br />

Moving used car stock<br />

Driving sales in <strong>the</strong> used car<br />

sector.<br />

35<br />

dealer Management<br />

sysytems<br />

An overview <strong>of</strong> some <strong>of</strong> <strong>the</strong><br />

leading automotive dealer<br />

management system (DMS)<br />

packages available.<br />

EdITORIAL<br />

41<br />

Waste tyre management<br />

Voluntary compliance<br />

scheme for tyre industry<br />

operators.<br />

43<br />

Building an Opel<br />

Opel’s manufacturing<br />

secrets.<br />

47<br />

Finance<br />

Long-term planning.<br />

49<br />

Sports and social<br />

An invitation to join <strong>the</strong> <strong>Irish</strong><br />

<strong>Motor</strong> & Cycle Trades Golfing<br />

Association.<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 3 ]


neC targets moves to<br />

drive customer interest<br />

<strong>The</strong> recent meeting <strong>of</strong> <strong>the</strong> NEC discussed a<br />

number <strong>of</strong> ideas as to how <strong>the</strong> car market<br />

could be stimulated. Many ideas were<br />

suggested, including <strong>the</strong> following:<br />

l Valuations guide – introduction <strong>of</strong> a new<br />

valuations guide for used cars would be<br />

vital in helping dealers calculate <strong>the</strong><br />

values <strong>of</strong> <strong>the</strong>ir trade-ins;<br />

l Scrappage scheme by SIMI dealers,<br />

whereby older high polluting vehicles<br />

would receive a scrappage discount from<br />

dealers when <strong>the</strong>y are traded-in against<br />

a 06 or 07 used car. Alternatively, a state<br />

scrappage scheme could be introduced<br />

so that customers buying new cars would<br />

get a VRT refund when <strong>the</strong>y scrapped<br />

<strong>the</strong>ir old high polluting vehicle.<br />

l Training and advice from SIMI to<br />

members on how to sell existing used car<br />

stock;<br />

l Promotion <strong>of</strong> <strong>the</strong> benefits <strong>of</strong> buying a<br />

used <strong>Irish</strong> car over a used import, noting<br />

<strong>the</strong> certainty and protection a customer<br />

has when buying a car from <strong>the</strong>ir local<br />

dealer.<br />

SIMI NEWS<br />

Carhistorycheck soon to be available for testing<br />

<strong>The</strong> updated Carhistorycheck website will be available for testing shortly,<br />

and will incorporate an easy to use dashboard including “warning” flags<br />

on certain vehicles where appropriate, Emma Byrne, Corporate Services<br />

Executive, SIMI told <strong>the</strong> recent NEC meeting.<br />

Already 60,000 checks had been made by members on <strong>the</strong> site this year,<br />

with a number <strong>of</strong> dealers being in a position to refuse dubious cars as a<br />

result <strong>of</strong> information gained from a check. <strong>The</strong> <strong>Society</strong> was in discussion with<br />

suppliers <strong>of</strong> both Dealer Management Systems and Parts Catalogues with a<br />

view to integration between <strong>the</strong>se systems and Carhistorycheck.<br />

<strong>The</strong> website initiative is designed to reduce <strong>the</strong> risk <strong>of</strong> passing on cars that<br />

are stolen, have had <strong>the</strong>ir odometer tampered with, or have been written<br />

<strong>of</strong>f by insurance companies.<br />

<strong>The</strong> SIMI-sponsored site is a joint venture with Experian and is aimed at car<br />

dealers and o<strong>the</strong>rs involved in <strong>the</strong> trade. It requires users to register before<br />

<strong>the</strong>y can gain access. Once registration has been accepted by SIMI, users<br />

can search for cars in seconds on <strong>the</strong> website just by using <strong>the</strong> car’s Vehicle<br />

Identification Number (VIN) or its registration plate details.<br />

<strong>The</strong> site also provides car dealers with an <strong>of</strong>ficial SIMI Service History Check<br />

Certificate and, for a fee, will perform a finance check to ensure <strong>the</strong>re are<br />

no outstanding finance agreements on <strong>the</strong> vehicle.<br />

Because <strong>the</strong> site requires users to input <strong>the</strong> current odometer reading, it<br />

can also be used to build up an accurate picture <strong>of</strong> <strong>the</strong> correct mileage over<br />

a period <strong>of</strong> time, something that will instantly red flag a car that has been<br />

‘clocked’.<br />

<strong>The</strong> checks can be performed on any car registered in <strong>the</strong> Republic <strong>of</strong> Ireland<br />

or <strong>the</strong> UK, and details on some imported cars are also accessible.<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 5 ]


SIMI NEWS<br />

new car sales up 24% for July<br />

<strong>The</strong> <strong>Society</strong> <strong>of</strong> <strong>the</strong> <strong>Irish</strong> <strong>Motor</strong> <strong>Industry</strong> have just released<br />

figures for new car sales for July. <strong>The</strong> new cars figure sold in<br />

July 2008 (16,386) was up 24.61% from July 2007 (13,150),<br />

while sales for <strong>the</strong> first seven months <strong>of</strong> <strong>the</strong> year (140,4 47)<br />

were 15.4% down on <strong>the</strong> same period in 2007 (166,031).<br />

Commenting on <strong>the</strong> figures SIMI Director General, Alan Nolan<br />

said:“<strong>The</strong>re is evidence that <strong>the</strong> new VRT and Road Tax<br />

systems that had been designed to encourage people to buy<br />

cleaner cars, are actually working as planned. <strong>The</strong> average<br />

new car registered in July 2008 emits 21.4 g/km less CO 2 than<br />

those registered in July 2007. <strong>The</strong> fact that <strong>the</strong> July figures<br />

have shown a significant increase confirms that <strong>the</strong> fall-<strong>of</strong>f in<br />

May and June was as a result <strong>of</strong> car buyers holding-<strong>of</strong>f <strong>the</strong>ir<br />

purchases until July, to avail <strong>of</strong> <strong>the</strong> savings brought about by<br />

<strong>the</strong> new CO 2 based VRT system.<br />

ORL Consultants have been chosen by SIMI to help <strong>the</strong>ir<br />

members reduce communications costs in this difficult<br />

economic period. ORL Consultants can help you identify<br />

<strong>the</strong> response your business might receive from advertising<br />

campaigns. With dealers carrying out more targeted<br />

advertising in <strong>the</strong> current climate, it is now more important<br />

than ever to measure <strong>the</strong> response.<br />

l Real time reports - Allows you to see exactly <strong>the</strong> number<br />

<strong>of</strong> calls you are receiving from a particular advertising<br />

campaign.<br />

l Search facility - search <strong>the</strong> number <strong>of</strong> calls received by<br />

date, time, destination and duration.<br />

l Routing facility - Route calls to pre-defined destinations,<br />

e.g. to a mobile phone after business hours.<br />

l Negotiating power - <strong>the</strong>se real time stats will give you<br />

more negotiating power when and if you decide to renew<br />

your advertising campaigns.<br />

l Conversation ratio - <strong>the</strong>se reports will allow you to see<br />

<strong>the</strong> number <strong>of</strong> new business calls that are converted into<br />

[ 6 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

<strong>The</strong> registration figures represent a reduction from an<br />

exceptional performance last year which should be seen in<br />

context; <strong>the</strong> total <strong>of</strong> new cars to <strong>the</strong> end <strong>of</strong> July this year is<br />

<strong>the</strong> same level as <strong>the</strong> total new cars sold in <strong>the</strong> whole <strong>of</strong> 2003,<br />

which was also a good year.<br />

“As we have previously stated, <strong>the</strong> Budget changes have<br />

clearly resulted in great value in <strong>the</strong> new car market but have<br />

also delivered incredibly good value for buyers <strong>of</strong> used cars.<br />

This provides a very positive base for <strong>the</strong> <strong>Industry</strong>, in looking<br />

forward to 2009.”<br />

Light Commercial Vehicle registrations for <strong>the</strong> first seven<br />

months <strong>of</strong> 2008 (26,358) are down 26. 57% on <strong>the</strong> same period<br />

last year (35,894). Heavy Vehicle (HGV) registrations are are<br />

down 25.27% (3,070) for <strong>the</strong> year to date to end <strong>of</strong> July 2008,<br />

compared to <strong>the</strong> same period in 2007 (4,108).<br />

are you interested in reducing costs now?<br />

new customers.<br />

l Remote access - because <strong>the</strong>re is no hardware<br />

required you can view all <strong>the</strong> above reports via a web<br />

portal provided you have an internet connection.<br />

ORL Consultants have to date saved substantial amounts <strong>of</strong><br />

money for SIMI members by <strong>of</strong>fering independent impartial<br />

advice on company mobile phone price plans, broadband<br />

and landline packages that would include identifying<br />

redundant lines no longer in use.<br />

Benefits:<br />

l Independent impartial advice<br />

l Single point <strong>of</strong> contact for all your communication needs<br />

l Proactively monitor your account<br />

l Manage ongoing relationships with chosen vendors<br />

l Customer focused<br />

l Helpdesk support<br />

For more information call 0818 22 23 24 or email<br />

sales@orl.ie<br />

Congratulations and best wishes to Jim and Peggy Barton who<br />

recently celebrated <strong>the</strong>ir 60th (Diamond) Wedding Anniversary.<br />

Jim Barton, is a Past President (1963 and also 1977-78) <strong>of</strong><br />

SIMI and an Honorary Life Member. At a recent visit to Aras an<br />

Uachtarain by C.A.R. (Contact After Retirement), Jim Barton<br />

was elected as <strong>the</strong>ir first President. C.A.R. is an informal group<br />

<strong>of</strong> people who have retired from <strong>the</strong> motor trade (Contact Bob<br />

Prole on 01 2889565).


sIMI streng<strong>the</strong>n membership entry<br />

process at first meeting <strong>of</strong> new neC<br />

SIMI President Paul<br />

Flanagan chaired <strong>the</strong><br />

first meeting <strong>of</strong> <strong>the</strong><br />

new National Executive<br />

Council.<br />

<strong>The</strong> <strong>Society</strong> held its first meeting <strong>of</strong> <strong>the</strong> new<br />

National Executive Council on July 17th, in <strong>the</strong><br />

Radisson Hotel, Dublin Airport with President Paul<br />

Flanagan chairing <strong>the</strong> meeting.<br />

Before <strong>the</strong> meeting commenced, <strong>the</strong> NEC observed<br />

a minute’s silence as a mark <strong>of</strong> respect to Dr Tim<br />

Mahony (Chairman and founder <strong>of</strong> Toyota Ireland)<br />

and John Fitzpatrick (Former NEC representative<br />

for <strong>the</strong> VRO Section) both <strong>of</strong> whom had passed way<br />

recently.<br />

<strong>The</strong> business <strong>of</strong> <strong>the</strong> day commenced with an<br />

Extraordinary Meeting <strong>of</strong> <strong>the</strong> NEC to discuss rule<br />

changes with regard to membership. <strong>The</strong> proposed<br />

changes had been drawn up by <strong>the</strong> Membership<br />

Standards Committee and had been discussed<br />

at <strong>the</strong> March NEC Meeting. <strong>The</strong> changes would<br />

enhance <strong>the</strong> process <strong>of</strong> membership entry, helping<br />

to ensure only businesses <strong>of</strong> appropriate standard would gain access<br />

to SIMI membership. <strong>The</strong> changes, which were approved by <strong>the</strong> NEC,<br />

included a streng<strong>the</strong>ned membership entry code, a Membership Panel<br />

to review all new applicants prior to <strong>the</strong>ir submission to <strong>the</strong> NEC for<br />

election, and <strong>the</strong> introduction <strong>of</strong> a probationary period <strong>of</strong> membership<br />

whereby successful applicants would be granted full membership only<br />

after serving a probationary period extending until <strong>the</strong> first NEC meeting<br />

12 months after <strong>the</strong>ir initial election. In addition, new rules applying to<br />

all members were also introduced, namely <strong>the</strong> introduction <strong>of</strong> <strong>the</strong> power<br />

<strong>of</strong> suspension from membership by <strong>the</strong> NEC and also giving <strong>the</strong> NEC <strong>the</strong><br />

right to review membership in <strong>the</strong> event <strong>the</strong>re is a change in control <strong>of</strong><br />

<strong>the</strong> member or a change in <strong>the</strong> business operated by <strong>the</strong> member.<br />

<strong>The</strong> subsequent NEC meeting agreed <strong>the</strong> updated membership entry<br />

code and also addressed <strong>the</strong> issue <strong>of</strong> members’ engagement with <strong>the</strong><br />

<strong>Society</strong>’s Complaints service, in particular requiring going forward that<br />

members who have in excess <strong>of</strong> three complaints in any calendar year be<br />

required, at <strong>the</strong> discretion <strong>of</strong> <strong>the</strong> Standards Tribunal, to pay €200 for each<br />

subsequent compliant that year, and also any member who has 3 or more<br />

complaints in a calendar year upheld by <strong>the</strong> Standards Tribunal be brought<br />

to <strong>the</strong> NEC to have <strong>the</strong>ir membership discussed.<br />

Director General Alan Nolan addressed <strong>the</strong> meeting on <strong>the</strong> current state<br />

<strong>of</strong> <strong>the</strong> motor industry. <strong>The</strong> new car market was down 15.6% year to date,<br />

with July registrations helping to improve <strong>the</strong> market and commercial<br />

vehicle registrations also down on 2007 – LCVs down 26%; HGVs down 19%.<br />

This downturn reflected <strong>the</strong> economy as a whole, but undoubtedly part <strong>of</strong><br />

<strong>the</strong> fall in car registrations was down to <strong>the</strong> confusion caused by <strong>the</strong> midyear<br />

change to <strong>the</strong> VRT system. Perhaps more worryingly, an independent<br />

survey carried out by Sion Consulting, indicated that dealers were<br />

carrying on average 21.5% more used stock than last year with asking<br />

prices for vehicles also declining – petrol models down 14.8% on last year;<br />

diesels down 10.6% on last year.<br />

<strong>The</strong> <strong>Society</strong> had met with new Minister for Finance, Brian Lenihan TD, to<br />

discuss <strong>the</strong> concerns <strong>of</strong> <strong>the</strong> industry. It was emphasised at this meeting<br />

that if more changes were made to <strong>the</strong> VRT system by changing <strong>the</strong> bands<br />

and/or VRT rates in <strong>the</strong> hope <strong>of</strong> generating extra Government Revenue,<br />

this would in fact have a negative impact on both <strong>the</strong> industry and tax<br />

revenues. <strong>The</strong> <strong>Society</strong> had indicated to <strong>the</strong> Minister that it was seeking<br />

no change to <strong>the</strong> VRT rates or bands in December’s Budget, as stability is<br />

going to be a key issue in any recovery next year. Also discussed with <strong>the</strong><br />

Minister was <strong>the</strong> issue <strong>of</strong> <strong>Irish</strong> residents driving foreign registered vehicles<br />

– this illegal practice was hampering members’ ability to do business,<br />

while at <strong>the</strong> same time resulting in a loss to Revenue.<br />

SIMI NEWS<br />

<strong>Motor</strong> &<br />

allied trades<br />

Benevolent Fund -<br />

Ben Ball 2008<br />

Following on <strong>the</strong> success <strong>of</strong> last year’s Ben<br />

Ball at <strong>the</strong> Shelbourne Hotel, this year’s<br />

event returns to <strong>the</strong> same venue on Saturday<br />

October 25th 2008. This year’s event is being<br />

planned to give guests a memorable evening<br />

out whilst raising much needed funding for<br />

all those people in <strong>the</strong> industry in need <strong>of</strong><br />

financial help and assistance.<br />

<strong>The</strong> Shelbourne Hotel has been chosen once<br />

again to host this year’s BEN Ball as it is<br />

undoubtedly one <strong>of</strong> Dublin’s finest hotels and<br />

promises an exciting night <strong>of</strong> gourmet food,<br />

music, gala charity auction, entertainment<br />

and fun to lighten up <strong>the</strong> October holiday<br />

weekend and kick start <strong>the</strong> winter social<br />

diary.<br />

Entertainment on <strong>the</strong> night includes:<br />

l Hit Connection – Ireland’s premier dance<br />

band<br />

l After dinner entertainment with Tara<br />

Novak, renowned violinist<br />

l Reverse bingo with superb prizes<br />

l Charity auction – bid for unique<br />

experiences!<br />

l Table draw<br />

l Sumptuous gala dinner<br />

Ticket prices remain unchanged from last<br />

year at €160 per person. Special overnight<br />

rates are available for those attending <strong>the</strong><br />

Ball. Deluxe King Rooms are €255 per room<br />

for two people including full <strong>Irish</strong> Breakfast.<br />

Tables up to 12 persons, or individuals<br />

and small groups are welcome and can be<br />

catered for.<br />

For fur<strong>the</strong>r information or to book a table<br />

please contact Con Dalton, Honorary<br />

Secretary, BEN on 01- 6761690 or at<br />

cdalton@simi.ie<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 7 ]


OBITUARY<br />

[ 8 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

John Fitzpatrick<br />

Friends, colleagues and <strong>the</strong> motor industry community were deeply<br />

saddened by news <strong>of</strong> <strong>the</strong> recent death <strong>of</strong> John Fitzpatrick. May he rest in<br />

peace.<br />

John was <strong>the</strong> man behind Fitzpatrick Recovery, a name synonymous with<br />

breakdown services in Ireland. He died in July after a short illness.<br />

A lengthy convoy <strong>of</strong> more than twenty recovery vehicles driven by friends<br />

in <strong>the</strong> business - including Derek Beahan, Eamonn Kelly, Dave Holmes and<br />

Wayne Dalton - formed a poignant cavalcade at John’s funeral.<br />

Breakdown service owners - business rivals, but lifetime friends - came<br />

from as far as Newcastle and Scotland to honour his memory and<br />

achievements.<br />

<strong>The</strong> funeral cavalcade, which included two recovery bikes, led <strong>the</strong><br />

thousands in attendance from <strong>the</strong> Church <strong>of</strong> <strong>the</strong> Way <strong>of</strong> <strong>the</strong> Cross, Togher<br />

to his final resting place <strong>of</strong> Chetwynd cemetery, near <strong>the</strong> Viaduct.<br />

John was in his early fifties and living in Lehenaghmore, Togher. He set up<br />

Fitzpatrick Recovery in 1994 with two trucks, a Ford Cargo and an Iveco.<br />

Within 10 years <strong>the</strong> firm was known as one <strong>of</strong> <strong>the</strong> most efficient and<br />

reliable breakdown services in Ireland, with a fleet <strong>of</strong> recovery vehicles<br />

on <strong>the</strong> road 24 hours a day. He had an impressive range <strong>of</strong> clients in Cork<br />

and beyond over <strong>the</strong> years including AOC Commercials, D Dennehy <strong>Motor</strong>s,<br />

McCarthy’s <strong>of</strong> Watergrasshill, Kevin O’Leary <strong>Motor</strong> Group, Wilton <strong>Motor</strong>s<br />

and PJ O’Hea’s.<br />

John is survived by his wife Cathy and <strong>the</strong>ir three children, Cliona, Sean<br />

and Ciaran.


OBITUARY<br />

<strong>The</strong> longest day <strong>of</strong> <strong>the</strong> year brings<br />

sad news to motor industry<br />

<strong>The</strong> late Dr. T.P. Mahony, Chairman <strong>of</strong> Toyota Ireland (right) seen here with Mr.Fujio Cho, Chairman <strong>of</strong> Toyota <strong>Motor</strong> Corporation Japan during<br />

his visit to Ireland in July 2006, toge<strong>the</strong>r with <strong>the</strong> <strong>the</strong>n President <strong>of</strong> SIMI and Deputy Managing Director <strong>of</strong> Toyota Ireland, Mr. Jim Cusack.<br />

One <strong>of</strong> <strong>the</strong> industry’s best known individuals, Dr. Tim<br />

Mahony, passed away on June 21st, 2008 after a short<br />

illness.<br />

Tim Mahony was Chairman <strong>of</strong> <strong>the</strong> Killeen <strong>Motor</strong> Group, which<br />

holds <strong>the</strong> franchise for Toyota and Lexus in Ireland. His death<br />

closed a 35-year chapter in <strong>the</strong> most significant success story<br />

<strong>the</strong> <strong>Irish</strong> motor industry has seen.<br />

His clear vision, commitment and determination brought a<br />

fledgling company with an unknown Japanese brand from<br />

small beginnings in <strong>the</strong> early seventies to market leadership<br />

by <strong>the</strong> mid-eighties.Key to his strategy for success was <strong>the</strong><br />

establishment <strong>of</strong> a strong pr<strong>of</strong>essional and loyal dealer<br />

network, which became <strong>the</strong> backbone <strong>of</strong> Toyota’s market<br />

performance over <strong>the</strong> years.<br />

Indeed, his achievements for <strong>the</strong> Toyota brand in Ireland<br />

became legendary throughout <strong>the</strong> Toyota global family<br />

and are revered by <strong>the</strong> top management <strong>of</strong> Toyota <strong>Motor</strong><br />

Corporation in Japan.He was well known for his strong<br />

leadership and unique style <strong>of</strong> management, which focused<br />

on simplicity ra<strong>the</strong>r than complexity. He was held in<br />

such regard that senior Toyota Executives in Europe were<br />

encouraged to follow <strong>the</strong> example Tim Mahony set in many<br />

areas <strong>of</strong> <strong>the</strong> business from market share to customer care.<br />

He was passionate about customer care and always instilled<br />

in his management team a philosophy <strong>of</strong> putting <strong>the</strong><br />

customer first at all times. Also he brought a new marketing<br />

approach to selling cars which was both creative and fresh,<br />

<strong>of</strong>ten writing his own copy or coming up with an appropriate<br />

[ 10 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

slogan for advertising campaigns.<br />

Outside <strong>of</strong> his business life, he was quintessentially a<br />

wonderful <strong>Irish</strong>man and a great contributor. He had a love<br />

<strong>of</strong> all things <strong>Irish</strong>, with an infectious enthusiasm for its<br />

language, sport and music.<strong>The</strong> Munster Hurling final each<br />

year was always an important date in his diary and he<br />

enjoyed <strong>the</strong> whole occasion <strong>of</strong> <strong>the</strong> day, which he rarely<br />

missed over <strong>the</strong> years.<br />

He also had a lifelong love <strong>of</strong> classical music, which lay<br />

behind his sponsorship <strong>of</strong> <strong>the</strong> National Youth Orchestra <strong>of</strong><br />

Ireland since 1979. He was a patron <strong>of</strong> <strong>the</strong> World Music<br />

Centre at <strong>the</strong> University <strong>of</strong> Limerick and <strong>the</strong> Helix Centre in<br />

Dublin City University, where <strong>the</strong> main auditorium is named<br />

<strong>the</strong> Mahony Hall.<br />

His focus on continually streng<strong>the</strong>ning <strong>the</strong> Toyota brand<br />

brought about <strong>the</strong> sponsorship <strong>of</strong> Munster Rugby four years<br />

ago and he oversaw Toyota Ireland’s sponsorship <strong>of</strong> <strong>the</strong> All<br />

Ireland Senior Football Championships.<br />

Outside <strong>the</strong> motor companies, Tim Mahony had o<strong>the</strong>r<br />

business interests, including <strong>the</strong> development <strong>of</strong> Mount<br />

Juliet in 1990 which hosted three <strong>Irish</strong> Open Golf<br />

Championships (1993 – 1995) and two American Express<br />

World Golf Championships in 2002 and 2004.<br />

Overall, his contribution to <strong>the</strong> <strong>Irish</strong> motor industry was<br />

immense and he will be sadly missed by all who knew him<br />

as a humorous man and a larger-than-life character with a<br />

vision <strong>of</strong> Ireland at its best.<br />

Ní bheidh a léi<strong>the</strong>id arís ann, beannacht Dé ar a anam.


STATISTICS<br />

Top ten<br />

10<br />

selling cars -<br />

2008<br />

Corolla 5,987 4.8%<br />

1 Focus 5,903 4.8%<br />

Golf 5,618 4.5% Mondeo 5,526 4.5%<br />

Avensis 4,521 3.6% 5 Astra 4,156 3.4%<br />

Passat 4,009 3.2% 7 Auris 3,478 2.8%<br />

Corsa 3,240 2.6%<br />

3<br />

9 Qashqai 3,162 2.6%<br />

2<br />

4<br />

6<br />

8<br />

10<br />

[ 12 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Top selling cars - June 2008<br />

Position Model range Units sold market share (%)<br />

1 Corolla 665 8.4<br />

2 Avensis 644 8.1<br />

3 Focus 457 5.8.<br />

4 Mondeo 357 4.5<br />

5 Auris 285 3.6<br />

6 Golf 268 3.4<br />

7 Astra 255 3.2<br />

8 Corsa 251 3.2<br />

9 E Class 227 2.9<br />

10 Grand Vitara 153 1.9<br />

Marque 01/06/08-31/06/08 01/01/08-31/06/08 market share(%)<br />

Alfa Romeo 46 278 0.22<br />

Audi 103 3361 2.71<br />

BMW 126 3295 2.65<br />

Cadillac 0 0 0.00<br />

Chevrolet 57 1215 0.98<br />

Chrysler Jeep 21 155 0.12<br />

Citroen 255 1903 1.53<br />

Daihatsu 52 432 0.35<br />

Dodge 2 35 0.03<br />

Fiat 105 1617 1.30<br />

Ford 957 15543 12.52<br />

Opel 761 10646 8.58<br />

Honda 74 2391 1.93<br />

Hyundai 191 4541 3.66<br />

Jaguar 39 302 0.24<br />

Jeep 8 74 0.05<br />

Kia 69 2724 2.19<br />

Land Rover 159 1386 1.12<br />

Lexus 113 918 0.74<br />

Mazda 178 3774 3.04<br />

Merc-Benz 346 3679 2.96<br />

MG/Rover 0 1 0.00<br />

Mini 13 780 0.63<br />

Mitsubishi 38 1568 1.26<br />

Nissan 275 9431 7.60<br />

Perodua 1 8 0.01<br />

Peugeot 88 4048 3.26<br />

Porsche 4 53 0.04<br />

Renault 204 5339 4.30<br />

Saab 87 819 0.66<br />

Seat 161 2101 1.69<br />

Skoda 189 3367 2.71<br />

Smart 0 0 0.00<br />

Subaru 52 258 0.21<br />

Suzuki 238 2578 2.08<br />

Tata 0 0 0.00<br />

Toyota 1769 18319 14.76<br />

VW 608 13413 10.80<br />

Volvo 363 2566 2.07<br />

O<strong>the</strong>rs 155 1228 0.99<br />

Total June 2008 7,907 Year to 30/06 124,146<br />

Total June 2007 15,399 Year to 30/06 152,938<br />

2008 change 2007 -7,492 Year to 30/06 -28,792<br />

% change 2008-2007 -48.65% Year to 30/06 -18.83%


STATISTICS<br />

Top ten selling cars - to date<br />

Light commercial registrations - Jun 2008<br />

Marque 01/06/08-30/06/08 01/01/08-30/06/08 % Share<br />

Chevrolet 15 120 0.49<br />

Chrysler 4 48 0.19<br />

Citroen 64 817 3.31<br />

Dodge 1 25 0.08<br />

Fiat 94 1055 4.27<br />

Ford 469 5013 20.28<br />

Opel 160 1484 6.00<br />

Hyundai 33 748 3.03<br />

Isuzu 17 109 0.44<br />

Iveco 6 73 0.30<br />

Jeep 2 30 0.12<br />

Kia 20 370 1.50<br />

Land Rover 40 565 2.29<br />

LDV 1 32 0.13<br />

Mazda 4 67 0.27<br />

Mercedes 130 1344 5.44<br />

Mitsubishi 37 995 4.03<br />

Nissan 85 2172 8.79<br />

Peugeot 50 697 2.82<br />

Piaggio 2 2 0.01<br />

Renault 187 1248 5.05<br />

Rover 1 7 0.02<br />

Seat 4 57 0.23<br />

Suzuki 2 64 0.26<br />

Toyota 167 3120 12.62<br />

VW 234 3572 14.45<br />

O<strong>the</strong>rs 141 884 3.58<br />

Total June 2008 1,970 Year to 30/06 24,718<br />

Total June 2007 3,657 Year to 30/06 32,693<br />

2008 change 2007 -1,687 Year to 30/06 -7,975<br />

% change 2008-2007 -46.13% Year to 30/06 -24.39%<br />

Bus and coach registrations - Jun 2008<br />

Marque 01/06/08-30/06/08 01/01/08-30/06/08 % Share<br />

Autosan 0 0 0.00<br />

DAF 6 65 24.90<br />

MAN 0 0 0.00<br />

Mercedes 1 14 5.36<br />

Scania 7 62 23.75<br />

Temsa DAF 0 0 0.00<br />

Volvo 0 21 13.29<br />

O<strong>the</strong>rs 0 0 0.00<br />

Private 4 99 37.93<br />

Total June 2008 18 Year to 30/06 261<br />

Total June 2007 20 Year to 30/06 158<br />

2008 change 2007 -2 Year to 30/06 103<br />

% change 2008-2007 -10.00% Year to 30/06 65.19%<br />

Heavy commercial registrations - Jun 2008<br />

Marque 01/06/08-30/06/08 01/01/08-30/06/08 % Share<br />

Avia 2 45 1.69<br />

DAF 28 308 11.60<br />

Hino 9 139 5.24<br />

Isuzu 17 55 2.07<br />

Iveco 21 228 8.59<br />

Man 24 223 8.40<br />

Mercedes 32 209 7.87<br />

Mitsubishi 13 168 6.33<br />

Renault 15 136 5.12<br />

Scania 48 534 20.11<br />

Volvo 41 452 17.02<br />

O<strong>the</strong>rs 0 1 0.04<br />

Private 20 157 5.91<br />

Total June 2008 270 Year to 30/06 2,655<br />

Total June 2007 524 Year to 30/06 3,670<br />

2008 change 2007 -254 Year to 30/06 -1,015<br />

% change 2008-2007 -48.47% Year to 30/06 -27.66%<br />

This table has been generously sponsored by Navigator-<br />

Just in Time Logistics Service for <strong>the</strong> <strong>Irish</strong> <strong>Motor</strong> <strong>Industry</strong>.<br />

Tel: (01) 7034343 / 7034348 Fax: (01) 7034349<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 13 ]


INdUSTRY<br />

Portugal<br />

and renault<br />

nissan alliance<br />

announce<br />

zero emission<br />

partnership<br />

<strong>The</strong> Government <strong>of</strong> Portugal and <strong>the</strong> Renault Nissan Alliance<br />

recently announced a partnership to promote zero emission<br />

mobility across that country which might provide a model for<br />

o<strong>the</strong>r countries such as Ireland.<br />

Portugal is <strong>the</strong> first partner to join <strong>the</strong> Alliance in a direct<br />

program <strong>of</strong> this type. Under <strong>the</strong> commitment <strong>of</strong> <strong>the</strong> Alliance<br />

[ 14 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Portuguese Prime Minister José Sócrates<br />

to be <strong>the</strong> global leader in zero-emission vehicles, this<br />

initiative aims to bring toge<strong>the</strong>r <strong>the</strong> public and private sectors<br />

to create <strong>the</strong> necessary conditions to make zero-emission<br />

vehicles a viable and attractive solution for consumers.<br />

Under <strong>the</strong> framework agreement, <strong>the</strong> Portuguese government<br />

focused on three core areas:<br />

l To study with <strong>the</strong> Alliance how to create <strong>the</strong> right<br />

conditions to make electric vehicles an attractive <strong>of</strong>fer for<br />

Portuguese consumers;<br />

l To examine <strong>the</strong> infrastructure and related organizations<br />

required to create a nationwide network <strong>of</strong> charging<br />

stations for electric vehicles; and<br />

l To identify <strong>the</strong> most effective communication and education<br />

channels to raise awareness <strong>of</strong> electric vehicles.<br />

<strong>The</strong> Alliance has agreed to mass market its electric vehicles<br />

to consumers in Portugal, starting in 2011. Portugal will be<br />

one <strong>of</strong> <strong>the</strong> lead global markets for <strong>the</strong> introduction <strong>of</strong> unique<br />

models <strong>of</strong> all-electric vehicles from <strong>the</strong> Alliance.<br />

“Portugal has become a leading country in renewable energy.<br />

This agreement with Renault-Nissan will place Portugal also<br />

on <strong>the</strong> front line in terms <strong>of</strong> sustainable mobility with zero<br />

emission vehicles. Promoting electric cars in Portugal will<br />

reduce our dependence on imported oil and will contribute to<br />

a cleaner environment,” said Portuguese Prime Minister José<br />

Sócrates.<br />

Renault and Nissan have already targeted Israel and Denmark<br />

as pioneer markets for its electric cars from 2011, those plans<br />

including Project Better Place, an Israeli company dedicated<br />

to establishing <strong>the</strong> necessary infrastructure for electric cars.<br />

<strong>The</strong> rush to alternative-powered vehicles is set to ga<strong>the</strong>r pace<br />

in <strong>the</strong> face <strong>of</strong> sky-high oil prices and little prospect <strong>of</strong> <strong>the</strong>ir<br />

return to levels enjoyed in previous decades. Expectations <strong>of</strong><br />

an oil price permanently above $100 a barrel, and perhaps<br />

much higher than that, has suddenly and significantly<br />

increased <strong>the</strong> viability <strong>of</strong> alternative technologies<br />

Carmakers are now pushing ahead on <strong>the</strong> development <strong>of</strong><br />

all-electric vehicles while expanding <strong>the</strong> range <strong>of</strong> existing<br />

petrol-electric hybrids. Hydrogen fuel cell cars are in <strong>the</strong> mix<br />

too, expected to be long-term alternative to <strong>the</strong> fossil-fuelled<br />

internal combustion engine.<br />

<strong>Industry</strong> analysts have predicted electric cars will be<br />

ready for mass market around 2010-11 but <strong>the</strong> re-charging<br />

infrastructure remains <strong>the</strong> biggest obstacle.<br />

Electric car development is based on <strong>the</strong> use <strong>of</strong> high-storage<br />

lithium-ion batteries that Nissan says will deliver similar<br />

performance to a 1.6-litre petrol engine.


BMW efficient<br />

Dynamics means<br />

savings for <strong>Irish</strong><br />

consumers<br />

<strong>Irish</strong> customers buying a new BMW or MINI can<br />

expect to make significant savings under <strong>the</strong> new<br />

Vehicle Registration Tax system thanks to its new<br />

EfficientDynamics strategy, <strong>the</strong> company claim. Of <strong>the</strong><br />

standard/entry level transmissions on <strong>the</strong> 253 BMW<br />

models, 172 will fall in price, or 68 percent <strong>of</strong> <strong>the</strong><br />

range. Of <strong>the</strong> 13 MINI models nine fall in price, or 69<br />

percent.<br />

Under <strong>the</strong> banner <strong>of</strong> <strong>the</strong> EfficientDynamics strategy,<br />

BMW says its vehicles employ a range <strong>of</strong> technologies<br />

such as brake energy regeneration, auto start-stop<br />

and electric power steering to help cut fuel bills and<br />

emissions. An optimum gearshift change indicator is<br />

included to encourage economical motoring.<br />

<strong>The</strong>se innovations are in addition to high-precision<br />

direct injection engines on some models that fur<strong>the</strong>r<br />

aid engine performance. Instead <strong>of</strong> producing one<strong>of</strong>f<br />

models or <strong>the</strong> occasional concept car, BMW has<br />

introduced EfficientDynamics across almost all <strong>of</strong> its<br />

range in 2007.<br />

In Europe, around 40 percent <strong>of</strong> new vehicles, or<br />

22 models manufactured by <strong>the</strong> BMW Group have a<br />

maximum emission <strong>of</strong> 140g CO 2 /km for model year<br />

2008. According to a company spokesperson: “<strong>The</strong><br />

BMW Group is on target to meet its commitment to<br />

reduce <strong>the</strong> CO 2 emissions <strong>of</strong> <strong>the</strong> combined fleet by<br />

30 per cent by <strong>the</strong> end <strong>of</strong> 2008 compared to 1995<br />

figures.”<br />

<strong>The</strong> BMW EfficientDynamics programme has recently<br />

been honoured with a global award.<br />

A jury consisting <strong>of</strong> 47 motor journalists from 24<br />

countries has awarded <strong>the</strong> BMW 118d, a model<br />

that displays all facets <strong>of</strong> EfficientDynamics, with<br />

<strong>the</strong> “World Green Car <strong>of</strong> <strong>the</strong> Year” at <strong>the</strong> New York<br />

International Auto Show 2008.<br />

Judges <strong>of</strong> <strong>the</strong> World Car <strong>of</strong> <strong>the</strong> Year Awards praised<br />

BMW and its 118d for <strong>of</strong>fering buyers a model with<br />

a range <strong>of</strong> innovative technologies that reduce fuel<br />

consumption and cut CO 2 emissions as standard.<br />

<strong>The</strong> three- and five-door BMW 118d record 4.5l/100km<br />

on <strong>the</strong> combined cycle with CO 2 emissions <strong>of</strong> just<br />

119g/km - putting it into <strong>the</strong> A band for VRT.<br />

INdUSTRY<br />

Pictured (l-r): Shane Doyle, Chief Engineer, Dublin Bus, Moyagh<br />

Murdock, Deputy Chief Mechanical Engineer, Bus Eireann and Pat<br />

Curran, Managing Director, Bridgestone Ireland.<br />

Bridgestone to supply<br />

Dublin Bus and Bus eireann<br />

Bridgestone Ireland has won an exclusive three year contract to<br />

supply tyres to Bus Éireann and Dublin Bus. <strong>The</strong> contract, which<br />

was awarded to Bridgestone after a competitive tender process,<br />

is <strong>the</strong> largest commercial tyre supply contract in Ireland, valued<br />

at approximately €3 million per annum.<br />

“We believe we were successful in securing this contract<br />

because Bridgestone was able to <strong>of</strong>fer <strong>the</strong> best package <strong>of</strong> both<br />

product and service at a competitive price,” says Pat Curran,<br />

Managing Director, Bridgestone Ireland. “Bridgestone has made<br />

a significant investment in its operations in Ireland over <strong>the</strong><br />

last five years and I believe this gives it a competitive edge in<br />

servicing large vehicle fleets.”<br />

Bridgestone will supply tyres for around 2700 buses between Bus<br />

Éireann and Dublin Bus. <strong>The</strong> tyres will be fitted by Bridgestone<br />

personnel based in <strong>the</strong> bus company’s 15 depots around Ireland.<br />

In addition, technical and logistical support will be provided by<br />

Bridgestone personnel based at its headquarters in Balbriggan,<br />

County Dublin. Two Bridgestone mobile van units will service<br />

and monitor school buses throughout <strong>the</strong> country.<br />

<strong>The</strong> tyres supplied for <strong>the</strong> buses in <strong>the</strong> contract will be a<br />

mixture <strong>of</strong> new and retreaded tyres and <strong>the</strong>y will be supplied<br />

under a price per kilometre arrangement. Approximately 30,000<br />

tyres will be supplied during <strong>the</strong> contract period.<br />

Volkswagen<br />

appointment<br />

Volkswagen Group Ireland has<br />

announced <strong>the</strong> appointment<br />

<strong>of</strong> Carol Davis to <strong>the</strong> position<br />

<strong>of</strong> Volkswagen Area Sales and<br />

Marketing Representative for<br />

Volkswagen passenger cars.<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 15 ]


INdUSTRY<br />

Pictured (l-r): Alan Nolan, Director General,<br />

SIMI; Minister for <strong>the</strong> Environment, Heritage<br />

and Local Government, John Gormley TD;<br />

and Tony Maher,Treasurer, SIMI.<br />

new vehicle labelling system launched<br />

Mr. John Gormley, TD, Minister<br />

for <strong>the</strong> Environment, Heritage<br />

and Local Government recently<br />

launched <strong>the</strong> new vehicle<br />

labelling system which applies<br />

to all new cars at <strong>the</strong> point-<strong>of</strong>sale<br />

since July 1st, 2008. This<br />

new national labelling system<br />

is very much in line with what<br />

is anticipated from <strong>the</strong> EU in<br />

<strong>the</strong> coming year and <strong>the</strong> seven<br />

colour coded bands should be<br />

familiar to consumers from<br />

<strong>the</strong> energy labels already<br />

in use for certain electrical<br />

goods. <strong>The</strong> overall approach<br />

is intended to assist buyers in<br />

evaluating <strong>the</strong> environmental<br />

impacts <strong>of</strong> different cars, as<br />

well as providing guidance<br />

for <strong>the</strong>m on purchase and<br />

running costs.<br />

Following on from <strong>the</strong><br />

introduction <strong>of</strong> changes to<br />

<strong>the</strong> Vehicle Registration Tax<br />

(VRT) and annual motor tax<br />

for new cars registered on<br />

or after 1st July 2008, a<br />

seven emission/tax bands<br />

have been<br />

created and <strong>the</strong> VRT and motor tax payable will be<br />

determined by <strong>the</strong> relevant band for each vehicle.<br />

Minister Gormley said: “<strong>The</strong> clear objective <strong>of</strong> <strong>the</strong> new CO 2 -<br />

based tax structure for cars is to influence <strong>the</strong> purchasing<br />

decisions <strong>of</strong> consumers by rewarding <strong>the</strong> buyers <strong>of</strong> lowemitting<br />

cars and charging a premium on less efficient<br />

vehicles. From 1st July, anyone buying a new car can make a<br />

[ 16 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

positive choice on investment<br />

and environmental grounds<br />

by purchasing a low CO 2<br />

emitting vehicle. As well as<br />

enjoying <strong>the</strong> benefits <strong>of</strong> a<br />

lower rate <strong>of</strong> motor tax and<br />

any saving on <strong>the</strong> pre-July<br />

purchase price <strong>of</strong> <strong>the</strong> car, <strong>the</strong>y<br />

will be making a very positive<br />

personal contribution to <strong>the</strong><br />

national response to climate<br />

change. Anyone who makes <strong>the</strong><br />

choice to purchase a high CO 2<br />

car will have to pay a higher<br />

rate <strong>of</strong> motor tax, in addition<br />

to any price rise as a result <strong>of</strong><br />

<strong>the</strong> VRT changes.”<br />

<strong>The</strong> new vehicle labelling<br />

system has been introduced<br />

initially on a non-statutory basis,<br />

in cooperation and with <strong>the</strong><br />

agreement <strong>of</strong> <strong>the</strong> <strong>Society</strong> <strong>of</strong> <strong>the</strong><br />

<strong>Irish</strong> <strong>Motor</strong> <strong>Industry</strong> (SIMI) and<br />

applies to all new cars at point<br />

<strong>of</strong> sale. It is intended that <strong>the</strong><br />

new system will be established<br />

on a statutory basis later in <strong>the</strong><br />

year. Minister Gormley stated “I<br />

see <strong>the</strong> improvements in vehicle<br />

labelling as a positive step in<br />

enabling <strong>Irish</strong> motorists to make a<br />

direct personal contribution to combatting climate change.”<br />

<strong>The</strong> Minister concluded “I very much welcome <strong>the</strong> support<br />

<strong>of</strong> SIMI in introducing <strong>the</strong> new label from 1st July and I look<br />

forward to continuing to work with <strong>the</strong> motor industry in<br />

making this very positive step a success.”


INdUSTRY<br />

Classic car auction held<br />

to honour dedicated<br />

employee<br />

Eighty year old Norman Colfer refuses to have an easy life.<br />

Despite his advancing years, <strong>the</strong> auctioneer is still putting<br />

cars under <strong>the</strong> hammer at Merlin <strong>Motor</strong> Car Auctions. In<br />

gratitude for his many years <strong>of</strong> pr<strong>of</strong>essional and dedicated<br />

work, Merlin <strong>Motor</strong>s held a very special Classic Car Auction in<br />

his honour.<br />

Norman, one <strong>of</strong> <strong>the</strong> most famous auctioneers in Ireland, is<br />

a pinnacle <strong>of</strong> <strong>the</strong> entire industry and Merlin decided it was<br />

fitting to hold a specialist auction in his honour. On his 80th<br />

birthday, July 16th, Merlin Car Auctions hosted a classic car<br />

auction where Norman took to <strong>the</strong> podium doing what he has<br />

done for over 50 years and overseeing <strong>the</strong> entire auction.<br />

Cars auctioned included a 1974 BMW 2002Tii, a 1972 Fiat<br />

850 Spider Bertone Convertible, as well as <strong>the</strong> more recent<br />

1992 Alfa Romeo Spider S4 and a 1994 VW Corrado VR6 2.9<br />

Sport Coupe.<br />

Norman Colfer was born in New Ross in 1928 where he was<br />

educated in Glenstal Abbey School. His education continued in<br />

Trinity College where he studied law. It was during this time<br />

he reaslised that auctioneering was his passion and decided to<br />

specialise in auctioneering with Smith Griffin.<br />

It was in 1974 that Merlin Car Auctions (<strong>the</strong>n Windsor) came<br />

into being with Norman at its helm. Now 34 years on and<br />

celebrating his 80th birthday, Norman still wields <strong>the</strong> gavel<br />

and has been responsible for an astounding one million<br />

vehicle sales at auction.<br />

Besides vehicle auctioneering, Norman has auctioned across<br />

several industries, <strong>the</strong> most notable being G<strong>of</strong>fs and Thos and<br />

Adams in Blackrock, which he still does today.<br />

Norman Colfer in <strong>the</strong> mid-sixties...<br />

…in 1979.<br />

…in 1989.<br />

[ 18 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Merlin set to double <strong>the</strong><br />

action at auction<br />

Merlin Auctions have announced <strong>the</strong>y are launching a new<br />

two-lane auction system. Under <strong>the</strong> new system, vehicles will<br />

be divided into two auctions running simultaneously. In <strong>the</strong><br />

existing auction hall, Merlin will run through finance and exfleet<br />

stock while all trade, retail and private seller vehicles<br />

will run through <strong>the</strong> new second lane.<br />

<strong>The</strong> new two-lane auction system was welcomed with great<br />

enthusiasm by traders and private buyers alike according to<br />

Merlin O’Reilly, CEO <strong>of</strong> <strong>the</strong> <strong>Motor</strong> Group: “Over 300 vehicles<br />

ran though <strong>the</strong> two lanes and <strong>the</strong> auction finished in record<br />

time with 200 successful sales. Our new two-lane auction<br />

is just ano<strong>the</strong>r step in maintaining our position as <strong>the</strong> most<br />

innovative auction company in Ireland.<br />

“It is imperative to always stay one step ahead in order to<br />

succeed and our next exciting new service is <strong>the</strong> Merlin Car<br />

Swap, which allows customers trade in any vehicle against any<br />

purchase at Merlin Car Auctions. No o<strong>the</strong>r auction in Europe<br />

has anything like this and we are all really excited about its<br />

launch.”<br />

<strong>The</strong> idea for <strong>the</strong> two lanes arose because most buyers are<br />

interested in a particular type <strong>of</strong> vehicle and have a predefined<br />

budget. This new system means sellers are showcasing<br />

<strong>the</strong>ir vehicles to a specific, targeted group <strong>of</strong> buyers and<br />

in turn buyers are watching an auction that contains only<br />

vehicles fitting <strong>the</strong>ir requirements. <strong>The</strong> o<strong>the</strong>r main benefit to<br />

<strong>the</strong> two lanes, according to Merlin, is that <strong>the</strong>re is twice <strong>the</strong><br />

selection <strong>of</strong> vehicles in half <strong>the</strong> time.<br />

For more information on Merlin Car Auctions you can phone<br />

Sales on 045 988 700 or log onto www.merlincarauctions.ie<br />

and in 2008.


A native <strong>of</strong> Navan and a resident <strong>of</strong> Athlumney, Bob is widely<br />

acknowledged as one <strong>of</strong> <strong>the</strong> most popular and admired figures in<br />

<strong>the</strong> <strong>Irish</strong> motor industry.<br />

Appointed chief executive for Volkswagen, Audi and Skoda<br />

some 13 years ago, he has overseen <strong>the</strong> development <strong>of</strong> all four<br />

franchises, including <strong>the</strong> expanding Volkswagen light commercial<br />

vehicles division.<br />

In that period, he instituted a multi-million euro dealership<br />

development programme which has seen Volkswagen and Audi<br />

dealers provide state-<strong>of</strong>-<strong>the</strong> art showrooms and facilities for<br />

customers throughout <strong>the</strong> network. He also masterminded <strong>the</strong><br />

establishment <strong>of</strong> a national independent Skoda main dealer<br />

organisation.<br />

On <strong>the</strong> sales front, he helped establish a top-three position<br />

for Volkswagen in both passenger car and light commercial<br />

sales, streng<strong>the</strong>ned <strong>the</strong> position <strong>of</strong> Audi amongst <strong>the</strong> top three<br />

in luxury car sales and last year brought Skoda into <strong>the</strong> top<br />

ten in terms <strong>of</strong> overall unit sales for <strong>the</strong> first time since its<br />

reintroduction here in 1993.<br />

His early career with <strong>the</strong> <strong>Motor</strong> Distributors organisation was<br />

spent in administrative functions associated with <strong>the</strong> company’s<br />

car assembly operations at Naas Road. In <strong>the</strong> intervening years,<br />

he held a number <strong>of</strong> senior appointments within <strong>the</strong> company.<br />

<strong>The</strong>se include a spell as Distribution Manager as well as periods<br />

as Sales Manager for Volkswagen, Audi and Mercedes-Benz.<br />

In a letter to dealers and staff, <strong>Motor</strong> Distributors Group<br />

Managing Director Tom O’Dowd put on record <strong>the</strong> company’s<br />

heartfelt appreciation <strong>of</strong> <strong>the</strong> contribution made by Bob in<br />

<strong>the</strong> course <strong>of</strong> his life-long career with <strong>the</strong> <strong>Motor</strong> Distributors<br />

organisation. “In every role that he has held since joining our<br />

organisation some 43 years ago, Bob has performed his duties<br />

with honour and distinction as befits <strong>the</strong> person that he is,” Mr.<br />

O’Dowd said.<br />

“As chief executive responsible for Volkswagen, Audi and Skoda,<br />

he has overseen an unprecedented growth <strong>of</strong> all four franchises,<br />

Volkswagen light commercial vehicles included, and spearheaded<br />

a dealership investment and development programme that is<br />

unparalleled in <strong>the</strong> history <strong>of</strong> <strong>the</strong> <strong>Irish</strong> motor industry,” he said.<br />

Commenting, Bob thanked <strong>Motor</strong> Distributors and <strong>the</strong> O’Flaherty<br />

family for giving him <strong>the</strong> opportunity to work ‘for one <strong>of</strong> <strong>the</strong><br />

finest organisations in Ireland, in one <strong>of</strong> <strong>the</strong> world’s most<br />

exciting industries.”<br />

He also expressed gratitude to members <strong>of</strong> <strong>the</strong>ir dealer<br />

organisations, his colleagues within <strong>the</strong> company and all those<br />

who worked with him and supported him in his career, including<br />

members <strong>of</strong> <strong>the</strong> wider motor industry here and overseas.<br />

INdUSTRY<br />

Bob o’Callaghan<br />

announces plan to retire<br />

Popular motor industry executive Bob O’Callaghan has announced his intention to retire from his position as<br />

chief executive <strong>of</strong> <strong>the</strong> Volkswagen, Audi and Skoda division <strong>of</strong> <strong>Motor</strong> Distributors Limited after an unbroken 43<br />

years career with <strong>the</strong> company<br />

Merlin<br />

Bob O’Callaghan<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 19 ]


INTERvIEW<br />

<strong>Industry</strong> ready to<br />

meet challenges <strong>of</strong><br />

new vRT system and<br />

used car sector<br />

[ 20 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Alan Nolan, Director General, SIMI talks to Paddy<br />

Comyn about <strong>the</strong> key issues facing <strong>the</strong> industry<br />

and <strong>the</strong> strategies that <strong>the</strong> organisation are<br />

employing to deal effectively with <strong>the</strong>m.<br />

While <strong>the</strong> timing <strong>of</strong> <strong>the</strong> implementation <strong>of</strong> <strong>the</strong> new<br />

VRT system has complicated <strong>the</strong> lives <strong>of</strong> SIMI members,<br />

Alan says <strong>the</strong> long-term positives have to be recognised<br />

too. “I think all <strong>of</strong> us would agree that <strong>the</strong> Budget and<br />

<strong>the</strong> changes that it brought to VRT and road tax were<br />

surprisingly positive. Traditionally, <strong>the</strong> motorist and<br />

<strong>the</strong> industry were perhaps seen as <strong>the</strong> problem and<br />

as a source <strong>of</strong> easy revenue. <strong>The</strong>re was a fear that<br />

<strong>the</strong> change to environmental taxation could involve a<br />

lot <strong>of</strong> punishments and very little reward. We at <strong>the</strong><br />

SIMI worked hard to try and carry <strong>the</strong> argument that<br />

incentives would work better.<br />

“<strong>The</strong> new VRT system does have some very positive<br />

aspects to it and does recognise that people can make<br />

good choices and that we in <strong>the</strong> motor industry can be<br />

part <strong>of</strong> <strong>the</strong> solution and actually help Ireland to deliver<br />

on our environmental commitments. <strong>The</strong> new VRT<br />

system appears to recognise that if you reward people<br />

for making good choices <strong>the</strong>n that might make a positive<br />

and longer lasting difference. <strong>The</strong>re also seems to be a<br />

strategy to encourage a mix in vehicle technologies and<br />

to encourage people to change <strong>the</strong>ir cars for cleaner


ones as being positive steps for <strong>the</strong> environment.<br />

This is a far more positive context for <strong>the</strong> future<br />

as it is now obvious that any return to fur<strong>the</strong>r<br />

burdening <strong>of</strong> new cars with tax would be clearly<br />

counter-productive.”<br />

Alan emphasises that <strong>the</strong> industry hasn’t just<br />

been talking a good game, it has backed up its<br />

words with hefty investment: “<strong>The</strong> industry<br />

spends billions every single year in order to<br />

produce vehicles in line with future emission<br />

targets and measures that reward cleaner<br />

technologies which certainly encourage<br />

manufacturers to keep producing lower emission<br />

cars. It is self-reinforcing in many ways. It will<br />

encourage people to buy cleaner cars but it will<br />

also spur manufacturers to supply more <strong>of</strong> <strong>the</strong>m.”<br />

Of course, <strong>the</strong>re are some very serious issues for<br />

members that have arisen from <strong>the</strong> changes and<br />

Alan feels <strong>the</strong> system could have been introduced<br />

with a far better timing that would have allowed<br />

<strong>the</strong> industry and car buyers to deal with <strong>the</strong><br />

changes better.<br />

“Despite all <strong>of</strong> this, SIMI has remained positive.<br />

In <strong>the</strong> long run, <strong>the</strong>re is no doubt it will be good<br />

for <strong>the</strong> industry but equally, without doubt, <strong>the</strong><br />

changes have brought significant challenges. <strong>The</strong><br />

timing really was appalling. I think everyone<br />

would accept that a longer lead-in was needed in<br />

order for <strong>the</strong> industry to clear existing stocks and<br />

for government and <strong>the</strong> Revenue to get <strong>the</strong>ir new<br />

registration system in place.<br />

“A better approach would have been to announce<br />

mid-year what <strong>the</strong> changes would be. Ideally,<br />

we would have liked <strong>the</strong> announcement <strong>of</strong> <strong>the</strong><br />

bands in <strong>the</strong> middle <strong>of</strong> last year to come into<br />

effect on January 1st <strong>of</strong> <strong>the</strong> following year. I<br />

think <strong>the</strong> industry, consumers and <strong>the</strong> State would<br />

have benefited to a much greater degree from<br />

that. I accept that Budget time is traditionally<br />

in December, but, in instances like this one,<br />

<strong>the</strong>re was a case for making announcements as<br />

important as this earlier in <strong>the</strong> year.”<br />

But we are where we are, and Alan’s primary<br />

objective now is to face <strong>the</strong> challenges ahead<br />

and deal with <strong>the</strong>m effectively: “One <strong>of</strong> <strong>the</strong> main<br />

problems is <strong>the</strong> fall in <strong>the</strong> values <strong>of</strong> used cars<br />

and <strong>the</strong> big supply <strong>of</strong> used cars in dealer stocks.<br />

Obviously used car values have dropped because<br />

INTERvIEW<br />

VRT has dropped. But very few people would<br />

have anticipated <strong>the</strong> extent <strong>of</strong> <strong>the</strong> fall that has<br />

occurred. <strong>The</strong> fact that Vehicle Registration Tax<br />

is down is very good for <strong>the</strong> long run, but for now<br />

<strong>the</strong>re certainly are serious issues to be faced by<br />

dealers such as <strong>the</strong> level and value <strong>of</strong> <strong>the</strong>ir used<br />

car stocks.<br />

“On <strong>the</strong> plus side, we are starting to see a much<br />

better value for good quality <strong>Irish</strong> used cars as<br />

compared to <strong>the</strong> equivalent imported models and<br />

this is a very positive message for consumers. Our<br />

survey indicated a drop <strong>of</strong> around 15 percent in<br />

used car asking prices, which is great news for<br />

car buyers as we are talking about cars with <strong>the</strong><br />

security <strong>of</strong> a known <strong>Irish</strong> history.”<br />

What about <strong>the</strong> challenge right now? “Serious<br />

issues are bound to arise when <strong>the</strong> values <strong>of</strong> used<br />

cars fall by such significant amounts and for <strong>the</strong><br />

industry we are now in a period <strong>of</strong> real challenge<br />

in relation to those values. It has been a year <strong>of</strong><br />

many challenges for us and with Hire Drives, for<br />

instance, we did deliver something <strong>of</strong> a victory<br />

in getting a concession on a delayed payment <strong>of</strong><br />

VRT on cars that were anticipating a reduction<br />

in VRT while retaining <strong>the</strong> option to pay <strong>the</strong> VRT<br />

at <strong>the</strong> time <strong>of</strong> registration on cars where <strong>the</strong> VRT<br />

was increasing. Similarly, <strong>the</strong> concession on Road<br />

Tax that we achieved early in <strong>the</strong> year, which<br />

allowed customers to benefit from <strong>the</strong> new lower<br />

Road Tax Rates, was very important for car sales,<br />

particularly in <strong>the</strong> first quarter.<br />

“Since early in <strong>the</strong> year we have also worked hard<br />

at carrying strong public information about <strong>the</strong><br />

new VRT and Road Tax systems. We had a million<br />

hits on <strong>the</strong> special VRT and Road Tax information<br />

section that we provided on our website within its<br />

first three weeks in April. Here consumers could<br />

find out information about <strong>the</strong> new system in a<br />

simple fashion with a question-and-answer section<br />

and this has continued to be popular right up<br />

to today. We have, since May, been carrying <strong>the</strong><br />

message to consumers that <strong>the</strong>re is great value to<br />

be had in used cars from SIMI members. We are<br />

also looking at o<strong>the</strong>r aspects <strong>of</strong> <strong>the</strong> situation to<br />

see, for instance, if <strong>the</strong>re is any relief available<br />

for dealers in relation to <strong>the</strong> used stock issues,<br />

many <strong>of</strong> which have been caused by <strong>the</strong> change in<br />

VRT.”<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 21 ]


INTERvIEW<br />

Alan adds a note <strong>of</strong> caution: “<strong>The</strong> drop in<br />

secondhand values and <strong>the</strong> fact that <strong>the</strong><br />

market is slow means that dealers will be<br />

increasingly careful about <strong>the</strong> value that<br />

<strong>the</strong>y put on trade-ins. While <strong>the</strong> reductions<br />

in used car values are likely to produce<br />

great savings in <strong>the</strong> price a consumer will<br />

pay for a new car, <strong>the</strong>ir own trade-in is also<br />

likely to have reduced in value so that <strong>the</strong><br />

cost to change might not alter all that much<br />

from before. In <strong>the</strong> long run however, it will<br />

be to everyone’s benefit. Used cars will be<br />

cheaper to buy, new cars will be cheaper to<br />

buy and <strong>the</strong> amount <strong>of</strong> finance that people<br />

have to commit in buying <strong>the</strong>ir cars will also<br />

be reduced. Similarly, some commentators<br />

have said consumers have suffered a fall in<br />

equity in relation to <strong>the</strong>ir own cars but in<br />

reality, when <strong>the</strong>y go to change <strong>the</strong>ir car, it<br />

is not likely that it will cost <strong>the</strong>m any more<br />

to change than previously and it may, in<br />

fact, cost <strong>the</strong>m less.<br />

“We have been meeting with <strong>the</strong> Minister<br />

for Finance and Revenue over many <strong>of</strong><br />

<strong>the</strong>se issues, and also on <strong>the</strong> issue <strong>of</strong> <strong>Irish</strong><br />

residents driving cars with UK numberplates<br />

and <strong>of</strong> illegal roadside trading, which<br />

adversely affect <strong>the</strong> compliant pr<strong>of</strong>essional<br />

industry. We have been rattling that<br />

particular cage with Revenue and Finance<br />

but <strong>the</strong>re is an issue with regard to road<br />

safety as well. Effectively, many <strong>of</strong> <strong>the</strong>se<br />

cars have no registration number and are<br />

not traceable having been deregistered in<br />

<strong>the</strong> UK. We have even heard <strong>of</strong> people who<br />

have paid VRT on <strong>the</strong>ir car but continued to<br />

drive on <strong>the</strong> UK number plates thus avoiding<br />

speeding fines, penalty points, parking<br />

tickets and, <strong>of</strong> course, barrier free tolling in<br />

due course. This also needs to be addressed<br />

as a matter <strong>of</strong> urgency.”<br />

He continues: “On <strong>the</strong> environmental side,<br />

we have been working enthusiastically in<br />

<strong>the</strong> implementation process. We helped to<br />

implement <strong>the</strong> labelling system for cars. We<br />

were very happy with <strong>the</strong> level <strong>of</strong> support<br />

and commitment from all members in<br />

ensuring <strong>the</strong> success <strong>of</strong> that project and as<br />

a result we are ahead <strong>of</strong> many European<br />

[ 22 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

countries on this. Our system allows <strong>the</strong><br />

selling dealers to log on and print out <strong>the</strong><br />

environmental labels <strong>of</strong> all <strong>of</strong> <strong>the</strong> cars for<br />

sale in <strong>the</strong>ir showrooms. <strong>The</strong> labels carry<br />

information on <strong>the</strong> C0 2 emissions, <strong>the</strong> VRT<br />

band, <strong>the</strong> Road Tax and <strong>the</strong> fuel consumption<br />

<strong>of</strong> each car. <strong>The</strong> <strong>Irish</strong> motor industry has<br />

taken a strong lead on this.<br />

“<strong>Irish</strong> motorists look for a car based on <strong>the</strong>ir<br />

needs and not everyone can choose to drive<br />

a small car. This labelling system allows<br />

consumers to take account <strong>of</strong> <strong>the</strong> relative<br />

environmental performance <strong>of</strong> <strong>the</strong> cars in<br />

<strong>the</strong> range that <strong>the</strong>y need to purchase from<br />

to suit <strong>the</strong>ir lifestyle or business needs.”<br />

To help members face all <strong>of</strong> <strong>the</strong> challenges,<br />

SIMI has also been actively looking at areas<br />

such as cost savings that members can<br />

make and also at initiatives to stimulate<br />

<strong>the</strong> market. Ultimately, Alan concludes<br />

that helping to cope with <strong>the</strong>se types <strong>of</strong><br />

situations is what SIMI is all about: “We<br />

would all hope that this is a relatively shortterm<br />

situation, primarily down to <strong>the</strong> issues<br />

that this year has presented to us. <strong>The</strong><br />

industry is quite seasonal with a new sales<br />

year facing us all in January 2009. We will<br />

work with members and through our various<br />

committees to help those in <strong>the</strong> industry<br />

through <strong>the</strong> short-term challenges that<br />

face us over <strong>the</strong> rest <strong>of</strong> this year. In <strong>the</strong> old<br />

days, having a bad few months was not <strong>the</strong><br />

end <strong>of</strong> <strong>the</strong> world, but where members have<br />

made significant investments in <strong>the</strong>ir future<br />

by developing <strong>the</strong>ir premises, <strong>the</strong> higher<br />

overheads mean that leaner months can feel<br />

a lot tougher.<br />

“We have worked hard this year to get<br />

feedback locally from members in every<br />

centre in <strong>the</strong> country. I made sure to<br />

attend every centre meeting myself this<br />

year because I need to hear <strong>the</strong> views and<br />

concerns <strong>of</strong> members, first hand, at a time<br />

like this. I want members to be reassured<br />

that I am fully aware <strong>of</strong> <strong>the</strong> situation out<br />

<strong>the</strong>re around <strong>the</strong> country and to underline to<br />

members that SIMI is your organisation and<br />

we in head <strong>of</strong>fice are here to help you with<br />

all <strong>the</strong>se concerns in any way that we can.”


Aftermarket<br />

PAINTS PRODuCT NeWS l BATTeRy ReCyCLING l eNFORCING DeCOPAINTS ReGuLATION<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 23 ]


AFTERMARKET<br />

Envirobase <strong>of</strong>fers waterborne technology<br />

<strong>The</strong> PPG paint system range, available from National Autoparts, now<br />

<strong>of</strong>fers <strong>the</strong> latest in waterborne technology, Envirobase. Using normal<br />

guns and techniques, Envirobase <strong>of</strong>fers a choice <strong>of</strong> application methods<br />

to suit individual bodyshop needs. In addition, <strong>the</strong> final light coat<br />

application gives excellent aluminium laydown and a consistent colour<br />

match. according to a National Autoparts spokesperson.<br />

“<strong>The</strong> outstanding opacity <strong>of</strong> <strong>the</strong> product range means that you’ll need<br />

fewer coats, saving time and money toge<strong>the</strong>r with material savings <strong>of</strong><br />

up to 35 percent over conventional MS systems. This new system now<br />

features a genuine ten-minute bake option, giving maximum process<br />

efficiency.<br />

“But <strong>the</strong> benefits don’t stop <strong>the</strong>re. <strong>The</strong> gloss hold out has been<br />

improved so that you get a high quality repair whilst reducing <strong>the</strong><br />

need to polish. <strong>The</strong> colour matching accuracy <strong>of</strong> <strong>the</strong> tinters has also<br />

been improved and ensured that <strong>the</strong>y align to current and future OEM<br />

trends.”<br />

Coatings based on nanotechnology<br />

Nanovere Technologies has developed a complete line <strong>of</strong> ready-to-spray<br />

clear coatings based on nanotechnology. Zyvere Clear Nanocoatings<br />

were specifically designed to extend <strong>the</strong> life <strong>of</strong> Automotive OEM,<br />

Automotive Aftermarket, Fleet, Tractor, ATV & Custom Bike surfaces,<br />

by producing a extreme scratch resistant and self-cleaning paint<br />

surface (oil, dirt, stain and ice repellency).<br />

Laboratory tests, cited by Nanovere, show that Zyvere Clear<br />

Nanocoatings for Automotive require 60% less cleaning, have 75% better<br />

impact resistance, 476% better solvent resistance, and 45% better<br />

abrasion resistance than <strong>the</strong> closest automotive clear coat competitor<br />

(tests performed at Stonebridge Technical Services).<br />

Glasurit enhance undercoat range<br />

Glasurit, whose products are available from Team PR Reilly, have<br />

updated <strong>the</strong>ir undercoat materials range, which <strong>the</strong>y claim is now<br />

easier to sand and dries faster.<br />

<strong>The</strong> new primer fillers have had <strong>the</strong>ir drying times reduced by up to<br />

17 percent. <strong>The</strong>ir improved sandability also has a positive impact on<br />

process times.<br />

Along with <strong>the</strong> new primer fillers, Glasurit has developed new filler<br />

hardeners. <strong>The</strong> Glasurit 929-55 HS Filler Hardener fast is ideal for<br />

minor touch-up jobs and use in low temperatures. Glasurit 929-56 HS<br />

Filler Hardener normal is a good solution for fairly large panels and<br />

higher temperatures.<br />

<strong>The</strong> new filler hardeners are multi-purpose products that are<br />

compatible with all existing 285-X undercoat materials. That is why<br />

<strong>the</strong>y will ultimately replace <strong>the</strong> existing standard hardeners 929-51 HS<br />

Filler Hardener fast and 929-53 HS Filler Hardener normal.<br />

[ 24 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Bodyshop<br />

equipment and<br />

paint suppliers<br />

A listing <strong>of</strong> some <strong>of</strong> <strong>the</strong> leading bodyshop<br />

equipment and paint suppliers:<br />

AD Ireland Ltd<br />

520 Beech Road,Western Industrial Estate,<br />

Dublin 12<br />

Tel: 01-4260552<br />

Advanced Garage equipment & Supplies<br />

Twill House, Albert Quay, Cork<br />

Tel: 021-4847909<br />

Apaseal Ireland Ltd<br />

Coe’s Road Industrial Estate, Dundalk,<br />

Co Louth<br />

Tel: 042-9335069<br />

Hella Ireland Limited<br />

Unit 6.1, Woodford Business Park, Santry,<br />

Dublin 17<br />

Tel: 01-8620000<br />

National Autoparts<br />

Camac Close, Emmet Road, Inchicore,<br />

Dublin 8<br />

Tel: 01-4541700<br />

Reilly, Team PR Ltd<br />

Karkraft House, Kilbarrick Industrial Estate,<br />

Kilbarrick, Dublin 5<br />

Tel: 01-8320001<br />

Roe, D & S Ltd<br />

Unit D15, Ballymount Cross Industrial Estate,<br />

Ballymount, Dublin 24<br />

Tel: 01-4564410<br />

Serfac Ltd<br />

Hilary House, Cookstown Industrial Estate,<br />

Tallaght, Dublin 24<br />

Tel: 01-4598700<br />

Shop Bodyshop Direct<br />

Unit 17, Mullaghboy Industrial Estate, Navan,<br />

Ireland<br />

Tel: 046 90 93800<br />

Snap On/Sun Ireland Ltd<br />

Louth Village, Dundalk, Co Louth<br />

Tel: 01-4523711<br />

Tech Plus Ltd<br />

Unit E9, South City Business Park,<br />

Whitestown Way, Tallaght, Dublin 24<br />

Tel: 01-4049060<br />

Top Part Kingdom<br />

<strong>Motor</strong> Factors Ltd, Upper Rock Street,<br />

Tralee, Co Kerry<br />

Tel: 066-7122700<br />

Two Pack Supplies<br />

12-13 Monkstown Farm, Monkstown, Co<br />

Dublin<br />

Ph: 01 280 4621


AFTERMARKET<br />

Battery recycling scheme<br />

WEEE Ireland, <strong>the</strong> national compliance scheme<br />

for waste electrical and electronic recycling, has<br />

announced <strong>the</strong> launch <strong>of</strong> a battery recycling scheme<br />

for battery retailers and <strong>the</strong> automotive industry in<br />

advance <strong>of</strong> <strong>the</strong> new battery regulations which are due<br />

to be transposed into <strong>Irish</strong> law on 26th September.<br />

Under <strong>the</strong> new regulations, any retail outlets which<br />

sell batteries are obliged to provide facilities for<br />

<strong>the</strong>ir free take-back. All waste batteries <strong>of</strong> similar<br />

type sold must be accepted, regardless <strong>of</strong> <strong>the</strong>ir origin<br />

and with no obligation on <strong>the</strong> consumer to purchase.<br />

Batteries which fall under <strong>the</strong> scheme include<br />

portable batteries, batteries embedded in cordless<br />

electronic devices, and automotive batteries.<br />

WEEE Ireland’s new scheme will involve establishing<br />

over 10,000 waste battery drop-<strong>of</strong>f points including<br />

battery retail outlets such as convenience stores,<br />

supermarkets, jewellers and hardware stores,<br />

as well as garages, motor factors, distributors,<br />

o<strong>the</strong>r stockists and civic amenity sites to facilitate<br />

consumers who wish to dispose <strong>of</strong> <strong>the</strong>ir waste<br />

batteries.<br />

WEEE Ireland will coordinate <strong>the</strong> collection <strong>of</strong><br />

<strong>the</strong>se waste batteries, and facilitate <strong>the</strong>ir sorting,<br />

treatment and recycling. It is estimated that over<br />

2,000 tonnes <strong>of</strong> batteries are sold in Ireland each<br />

year – <strong>the</strong> equivalent in weight terms <strong>of</strong> 80 million AA<br />

batteries – with most being discarded in rubbish bins<br />

instead <strong>of</strong> being recycled due <strong>the</strong>ir small size.<br />

Automotive batteries or lead-acid batteries generally<br />

consist <strong>of</strong> lead, sulphuric acid and plastic casings.<br />

If <strong>the</strong>se batteries are not collected and treated in<br />

a safe and appropriate manner <strong>the</strong>y can potentially<br />

cause serious damage to <strong>the</strong> environment and human<br />

health.<br />

“Batteries are one <strong>of</strong> <strong>the</strong> few products which<br />

traditionally have slipped through <strong>the</strong> recycling<br />

net. With <strong>the</strong> support <strong>of</strong> producers, retailers and<br />

trade associations in rolling out this new initiative,<br />

batteries <strong>of</strong> all kinds, including those in <strong>the</strong><br />

automotive industry, can be deposited by consumers<br />

for free at specified drop-<strong>of</strong>f points where WEEE<br />

Ireland will organise for <strong>the</strong>ir collection, treatment<br />

and safe recycling,’ states Leo Donovan, CEO, WEEE<br />

Ireland.<br />

When batteries are collected by a permitted waste<br />

contractor and sent to a licensed treatment facility<br />

dedicated to battery recycling, <strong>the</strong>y will go through a<br />

variety <strong>of</strong> processes aimed at recovering material for<br />

use again. Much <strong>of</strong> <strong>the</strong> original battery components<br />

(plastic, lead, and various metals) can be reused to<br />

produce new batteries, thus reducing <strong>the</strong> strain on<br />

natural resources.<br />

WEEE Ireland is one <strong>of</strong> two authorised national<br />

compliance schemes for electrical and battery<br />

recycling. <strong>The</strong> scheme was founded in 2005 by<br />

producers <strong>of</strong> electrical and electronic appliances<br />

to comply with <strong>the</strong> WEEE Directive. WEEE Ireland<br />

organises <strong>the</strong> processing and recycling <strong>of</strong> household<br />

waste electrical and electronic equipment (WEEE)<br />

on behalf <strong>of</strong> its members from recycling centres,<br />

electrical retailers and o<strong>the</strong>r collection points<br />

covering over 80% <strong>of</strong> <strong>the</strong> geographic area <strong>of</strong> <strong>the</strong><br />

Republic <strong>of</strong> Ireland.<br />

Any household item that requires a plug or battery<br />

to function and is at <strong>the</strong> end <strong>of</strong> its life is considered<br />

waste electrical and electronic equipment (WEEE).<br />

Such items can be deposited at any <strong>of</strong> 80 civic<br />

amenity sites nationwide for free recycling. For<br />

fur<strong>the</strong>r information on WEEE and battery recycling,<br />

log on to www.weeeireland.ie<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 25 ]


AFTERMARKET<br />

Enforcing <strong>the</strong> decopaints<br />

regulation<br />

By now everyone operating in <strong>the</strong> bodyshop sector is<br />

likely to have heard about <strong>the</strong> deco-paints regulation<br />

arising from <strong>the</strong> EU Directive. <strong>The</strong> EPA has just<br />

completed an extensive search for all such premises<br />

in Ireland. All addresses identified have been written<br />

to with information about <strong>the</strong> new regulations and<br />

how to comply.<br />

This exercise augments a similar campaign<br />

undertaken in 2005 in connection with <strong>the</strong> solvents<br />

regulations, which <strong>the</strong>n applied to bodyshops. <strong>The</strong><br />

new database with <strong>the</strong>se addresses will be posted<br />

on <strong>the</strong> EPA website at www.decopaints.ie for all<br />

to see including <strong>the</strong> sectors, accredited inspection<br />

contractors, local authorities and <strong>the</strong> general public.<br />

Pilot audits were also carried out in 2005 and <strong>the</strong><br />

results were widely disseminated.<br />

In 2007, an extensive consultation process was<br />

undertaken in developing <strong>the</strong> “Best Practice<br />

Guidelines for Vehicle Refinishing for Repair<br />

Installations” culminating in a national seminar. Mr<br />

John Gormley T.D. Minister for <strong>the</strong> Environment,<br />

[ 26 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Heritage & Local Government, has since formally<br />

approved this document. Finally, an extensive media<br />

and advertising campaign was undertaken by <strong>the</strong> EPA<br />

including national newspapers, specialist journals<br />

and a national radio advertisement run over several<br />

weeks.<br />

In addition, <strong>the</strong> EPA has engaged extensively with<br />

<strong>the</strong> manufacturers and importers <strong>of</strong> paints for <strong>the</strong><br />

bodyshop sector. Such materials must by law have<br />

Volatile Organic Carbon (VOC) or solvent content<br />

below <strong>the</strong> permitted amount and must be clearly<br />

labelled. It is now an <strong>of</strong>fence to <strong>of</strong>fer non-compliant<br />

product, whe<strong>the</strong>r by way <strong>of</strong> excessive VOC content or<br />

incorrect labelling, for sale. An operator or retailer is<br />

obliged to report to <strong>the</strong> EPA if non-compliant product<br />

is supplied to <strong>the</strong>m. Similarly, it is also now an<br />

<strong>of</strong>fence for any vehicle refinishing operation to allow<br />

use <strong>of</strong> non-compliant product.<br />

EPA inspectors have already undertaken inspections<br />

throughout <strong>the</strong> country at premises supplying paints/<br />

materials to <strong>the</strong> bodyshop sector. Notifications <strong>of</strong>


AFTERMARKET<br />

non-compliance have been issued where irregularities<br />

have been identified. For <strong>the</strong> most part, noncompliances<br />

have been rapidly corrected and fur<strong>the</strong>r<br />

action may not be warranted. However, if recurring<br />

or systematically uncorrected non-compliances are<br />

identified, <strong>the</strong> EPA says it will not hesitate to take<br />

<strong>the</strong>se to <strong>the</strong> attention <strong>of</strong> <strong>the</strong> Courts as necessary.<br />

In May, a national workshop was held with all local<br />

authorities in <strong>the</strong> Environmental Enforcement<br />

Network under <strong>the</strong> Office <strong>of</strong> Environmental<br />

Enforcement. This was held in order to advise local<br />

authorities <strong>of</strong> <strong>the</strong> results <strong>of</strong> <strong>the</strong> bodyshop database<br />

research, and to co-ordinate enforcement in <strong>the</strong><br />

future. <strong>The</strong> local authorities were apprised <strong>of</strong> all <strong>of</strong><br />

<strong>the</strong> work completed by <strong>the</strong> EPA to implement <strong>the</strong><br />

regulations and to alert all affected operators in each<br />

<strong>of</strong> <strong>the</strong>ir areas.<br />

<strong>The</strong> local authorities will now be at <strong>the</strong> forefront <strong>of</strong><br />

ensuring that all bodyshops register and undertake<br />

<strong>the</strong>ir AIC audits on time. It is estimated that <strong>the</strong><br />

number <strong>of</strong> bodyshops now registered exceeds 500. It<br />

[ 28 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

should be noted that all <strong>of</strong> <strong>the</strong> major motor insurance<br />

companies have provided assurance to <strong>the</strong> EPA that<br />

<strong>the</strong>y will only include registered bodyshops in <strong>the</strong>ir<br />

list <strong>of</strong> approved repairers. Steps are being taken<br />

also to ensure that all public bodies commissioning<br />

vehicle repairs will only use <strong>the</strong> services <strong>of</strong> registered<br />

bodyshops.<br />

Anecdotally, many <strong>of</strong> <strong>the</strong> component parts needed<br />

to prepare high solvent paints are running out so any<br />

bodyshop persisting with such practices are unlikely<br />

to be able to guarantee quality results for <strong>the</strong>ir<br />

customers in <strong>the</strong> medium term.<br />

Apart from that, <strong>the</strong>re is <strong>the</strong> ongoing worry, which<br />

unregistered bodyshops have, that enforcement<br />

action may shut <strong>the</strong>ir businesses down and be<br />

followed by legal action.<br />

So, according to <strong>the</strong> EPA, <strong>the</strong> best advice to any<br />

bodyshop is to undertake that AIC audit without<br />

delay, register with your local authority and only use<br />

compliant products from a responsible supplier.


Why reduce vOC emissions?<br />

AFTERMARKET<br />

VOCs pose a risk to health and <strong>the</strong> environment. In still, sunny conditions and in <strong>the</strong> presence <strong>of</strong><br />

nitrogen oxides (contained in vehicle exhaust gases), VOCs react to form ground level ozone. Ozone is<br />

one <strong>of</strong> <strong>the</strong> components <strong>of</strong> summer smog and harms human health through respiratory illness, crops and<br />

<strong>the</strong> general ecosystem. Ozone can be transported over long distances, possibly hundreds <strong>of</strong> kilometres,<br />

from where it is formed. It is estimated <strong>the</strong> introduction <strong>of</strong> <strong>the</strong> Directive will reduce <strong>the</strong> VOC emissions<br />

from decorating materials by approximately 297k tonnes per year is 2010.<br />

vehicle Refinishers: Who does what?*<br />

Vehicle Refinishers are responsible for:<br />

• Undertaking compliant AIC audits and registering<br />

on-time<br />

• Maintaining compliant operations on an ongoing<br />

basis<br />

• Reporting instances <strong>of</strong> non-compliances to<br />

authorities including noncompliant product <strong>of</strong>fered<br />

for sale<br />

• Encouraging all players in <strong>the</strong>ir sector to comply<br />

• Providing information to Authorities on noncompliers<br />

Accredited Inspection Contractors are responsible<br />

for:<br />

• Maintaining accreditation and <strong>of</strong>fering inspection<br />

services in a pr<strong>of</strong>essional, impartial and fair manner<br />

• Reporting Vehicle Refinishers who refuse to<br />

undertake audits or to register to <strong>the</strong> Authorities<br />

• Providing feedback on <strong>the</strong> scheme and how it is<br />

operating<br />

Suppliers are responsible for:<br />

• Supplying only compliant product to <strong>the</strong> sector<br />

• Encouraging all operators supplied to undertake<br />

audit and registration on-time<br />

• Considering cessation <strong>of</strong> product supply to those not<br />

registered - based on end-customer service quality<br />

and supplier reputation risks<br />

• Providing information to <strong>the</strong> Authorities on noncompliers.<br />

Insurance companies are responsible for:<br />

• Engaging <strong>the</strong> services only <strong>of</strong> Vehicle Refinishers<br />

who are registered<br />

Local authorities are responsible for:<br />

• Registration <strong>of</strong> all Vehicle Refinishers within <strong>the</strong>ir<br />

functional areas<br />

• Pursuing non-registered Vehicle Refinishers<br />

systematically<br />

• Engaging with <strong>the</strong> OEE/EEN Solvents Group<br />

• Undertaking inspections and legal action as<br />

required.<br />

EPA is responsible for:<br />

• Engaging with all players to assure <strong>the</strong> success <strong>of</strong><br />

<strong>the</strong> AIC scheme<br />

• Publishing guidance for review and agreement<br />

• Developing capacity in local authorities for<br />

registration and enforcement (OEE/EEN Solvents<br />

Group)<br />

• Encouraging local authorities to pursue noncompliers<br />

• Undertaking inspections and legal action only where<br />

necessary to support local authorities and <strong>the</strong><br />

scheme<br />

• Leading <strong>the</strong> enforcement <strong>of</strong> <strong>the</strong> Compliant Product<br />

aspects <strong>of</strong> <strong>the</strong> Regulations.<br />

Department <strong>of</strong> <strong>the</strong> environment, Heritage & Local<br />

Government are responsible for:<br />

• Oversight <strong>of</strong> Regulations and <strong>the</strong> scheme<br />

• Providing necessary resources to enable Local<br />

Authorities to fulfil <strong>the</strong>ir roles<br />

• Introducing amendments to Regulations if necessary<br />

• Issuing authorisation for <strong>the</strong> placement on <strong>the</strong><br />

market <strong>of</strong> non-compliant products for restorative<br />

purposes<br />

• Reporting to <strong>the</strong> EU Commission on compliance with<br />

<strong>the</strong> Directive.<br />

*Based on SI 199 <strong>of</strong> 2007, this is a non-exhaustive list <strong>of</strong> roles but is indicative <strong>of</strong> <strong>the</strong> multi-stakeholder<br />

nature <strong>of</strong> <strong>the</strong> AIC Scheme.<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 29 ]


NEW vEHICLES<br />

VW Scirocco<br />

Rebirth <strong>of</strong> an 80’s icon<br />

Variant: Sports Coupé<br />

Price: Expected to<br />

start around €32,000<br />

Engines: 1.4-litre<br />

160bhp petrol, 2.0litre<br />

200bhp petrol,<br />

2.0-litre 140bhp diesel<br />

Transmission: 6-speed<br />

manual, 6- and<br />

7-speed DSG<br />

Competition: BMW<br />

1-Series Coupé,<br />

Hyundai Coupé<br />

Comment: Agile,<br />

good-looking and<br />

bound to be a hit<br />

Mitsubishi<br />

Lancer<br />

Sportback<br />

Mercedes rival to <strong>the</strong><br />

all-conquering M3<br />

Variant: Performance<br />

Saloon Car<br />

Price: €99,505<br />

Engine: 6.2-litre<br />

457bhp V8<br />

Transmission:<br />

7-speed automatic<br />

transmission<br />

Competition: Lexus<br />

IS-F, Audi RS4, BMW<br />

M3<br />

Comment: An<br />

incredibly powerful<br />

and thunderous<br />

saloon<br />

[ 30 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Ford Focus ST<br />

Ford gives <strong>the</strong> Focus <strong>the</strong> RS<br />

treatment once more<br />

Variant: Performance<br />

hatchback<br />

Price: TBA – circa €50,000<br />

Engine: 2.5-litre turbo with<br />

300bhp<br />

Transmission: Six-speed<br />

manual<br />

Competition: Mitsubishi<br />

Lancer Evolution, VW Golf<br />

R32<br />

Comment: Bound to be a<br />

masterpiece


BMW 7-Series<br />

BMW’s latest flagship<br />

unveiled – coming to<br />

Ireland in November<br />

Variant: Luxury saloon<br />

Price: TBA<br />

Engines: 3.0-litre diesel<br />

245bhp, 4.4-litre V8<br />

petrol, 3.0-litre petrol.<br />

Transmission: Six-speed<br />

automatic<br />

Competition: Mercedes-<br />

Benz S-Class, Lexus<br />

LS600H<br />

Comment: New styling and<br />

a host <strong>of</strong> new features for<br />

<strong>the</strong> flagship Beemer.<br />

Alfa Romero MiTo<br />

Alfa Romeo’s answer to <strong>the</strong> Mini<br />

Variant: Premium Supermini<br />

Price: Under €20,000 starting <strong>of</strong>f<br />

Engines: 1.4-litre 155bhp petrol,<br />

1.6-litre 120bhp diesel<br />

Transmission: 6-speed manual<br />

Competition: Mini, Audi A1 (when it<br />

comes)<br />

Comment: Likeable entry-point into<br />

<strong>the</strong> Alfa Romeo range<br />

NEW vEHICLES<br />

Mitsubishi Lancer Ralliart<br />

Don’t call it an Evo-light, it’s a super<br />

Lancer!<br />

Variant: Performance saloon, hatch<br />

Price: Around €55,000<br />

Engine: 2.0-litre turbo petrol 225bhp<br />

Transmission: 6-speed dual-clutch<br />

automatic<br />

Competition: Ford Focus ST, VW Golf<br />

R32<br />

Comment: Halfway to an Evo, but<br />

<strong>the</strong> price might go against it<br />

Lancia Delta<br />

Lancia return with a larger Delta than<br />

we remember<br />

Variant: Family hatchback<br />

Price: Likely to start at around<br />

€25,000<br />

Engines: 1.4-litre petrol 120bhp, 1.6litre<br />

120bhp diesel, 2.0-litre 165bhp<br />

diesel, 1.8-litre 200bhp petrol.<br />

Transmission: Six-speed manual<br />

Competition: Ford Mondeo, Citroen<br />

C5, BMW 1-Series<br />

Comment: Sits a little awkwardly<br />

between segments but will appeal to<br />

those wanting something unique<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 31 ]


TRAINING<br />

SIMI TRAINING COURSES: SEPTEMBER ANd OCTOBER<br />

SIMI Short Courses<br />

uPDATe TeSTeR TRAINING - CPD<br />

Mandatory Update Tester Training has been <strong>of</strong>ficially renamed as<br />

CPD (Continuing Pr<strong>of</strong>essional Development) bringing <strong>the</strong> training<br />

in line with o<strong>the</strong>r compulsory training for pr<strong>of</strong>essional bodies.<br />

<strong>The</strong> training will continue to be a half-day for Light Vehicle<br />

Testers and a full day for Heavy Vehicle Testers. CPD training<br />

will commence in early autumn. Please see course detail listed<br />

below.<br />

Vehicle Tester Network VTN – Mandatory Continuing<br />

Pr<strong>of</strong>essional Development for HGV and LGV Testers<br />

Dublin – Wednesday 3rd September<br />

HGV CPD – Bewleys Newlands Cross, Dublin<br />

Dublin – Thursday 4th September<br />

LGV CPD – Bewleys Newlands Cross, Dublin<br />

Mallow – Tuesday 9th and Wednesday 10th September<br />

HGV – Springfort Hall Hotel Mallow<br />

Mallow – Tuesday 16th and Wednesday 17th September<br />

LGV - Springfort Hall Hotel, Mallow<br />

Sligo – Tuesday 23rd September<br />

HGV – Radisson Hotel Rosses Point Sligo<br />

Sligo – Wednesday 24th September<br />

LGV – Radisson Hotel Rosses Point Sligo<br />

Athlone – Tuesday 30th September<br />

HGV – Creggan Court Hotel, Athlone<br />

Athlone – Wednesday 1st October<br />

LGV – Creggan Court Hotel, Athlone<br />

Kilkenny – Tuesday 7th October<br />

HGV – Days Hotel Kilkenny<br />

Kilkenny – Wednesday 8th October<br />

LGV – Days Hotel Kilkenny<br />

Duration – HGV 1 day 9.30 am to 5 pm Fee: HGV €165<br />

Duration - LGV Half day 9.30 am to 1pm Fee: LGV €115<br />

SeLLING FINANCe CPD<br />

In compliance with <strong>the</strong> IFSRA regulations regarding individuals<br />

who sell or provide advice on financial products, individuals<br />

must ei<strong>the</strong>r have a relevant qualification such as Foundation<br />

Certificate in Consumer Credit or by virtue <strong>of</strong> experience<br />

have availed <strong>of</strong> <strong>the</strong>ir ‘Grandfa<strong>the</strong>ring Arrangements’. In each<br />

case <strong>the</strong>re is a requirement to complete CPD (Continuing<br />

Pr<strong>of</strong>essional Development over a 3-year cycle. <strong>The</strong> latest date<br />

for commencement <strong>of</strong> this cycle for ‘grandfa<strong>the</strong>red individuals’<br />

was 1st January 2008. SIMI have developed a programme <strong>of</strong> CPD<br />

training aimed at individuals who availed <strong>of</strong> <strong>the</strong> ‘grandfa<strong>the</strong>ring<br />

arrangements’. Module 1 was well attended and module 2 is<br />

planned for early autumn. Please see course detail listed below.<br />

CPD for Financial Services Providers – Module 2<br />

Mallow – Wednesday 17th September<br />

Dublin – Wednesday 1st October<br />

Cavan – Wednesday 8th October<br />

New Ross – Wednesday 22nd October<br />

Limerick – Wednesday 29th October<br />

Dublin - Wednesday 5th November<br />

Sligo - Wednesday 12th November<br />

Trainer: Keith Browne – <strong>Industry</strong> Finance Specialist<br />

Duration 1 day Fee: €275<br />

[ 32 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

VAT AND VRT<br />

Wednesday 10 September<br />

Bewleys Hotel Newlands Cross Dublin<br />

Trainer: Eoin Fizgerald BDO Simpson Xavier<br />

Duration 1 day<br />

Fee:€365<br />

Service Advisor – exceptional Customer Service<br />

Tuesday 16th & Tuesday 23rd September – Dublin<br />

Trainer: Stephen Simpson – <strong>Industry</strong> Specialist<br />

Duration 2 days<br />

Fee€650<br />

Vehicle Appraisal<br />

Tuesday 21st October<br />

Best Western Sheldon Park Hotel, Dublin 10<br />

Trainer: Gaetano Forte <strong>Industry</strong> Specialist<br />

Fee:€365<br />

Sales Training – Vehicle Sales Management<br />

Wednesday 29th & Thursday 30th October<br />

Dublin (2 day programme)<br />

Trainer: Brian Milsted – <strong>Industry</strong> Specialist/Saleslynx<br />

Fee €650<br />

Workshop Management<br />

Tuesday 4th & Wednesday 5th November<br />

Dublin (2 day programme)<br />

Trainer: Brian Milsted – <strong>Industry</strong> Specialist/Saleslynx<br />

Fee €650<br />

Budgeting for 2009<br />

Tuesday 25th & Wednesday 26th November<br />

Dublin (2 day programme)<br />

Trainer: Brian Milsted – <strong>Industry</strong> Specialist/Saleslynx<br />

Fee €650<br />

Sales Training – Route 101<br />

Tuesday 2nd and Wednesday 3rd December<br />

Regional (2 day programme)<br />

Trainer: Brian Milsted – <strong>Industry</strong> Specialist/Saleslynx<br />

Fee €650<br />

Car Seat Fitting Seminars planned for late September<br />

A one day/half day programme on <strong>the</strong> correct fitting and<br />

selections <strong>of</strong> Child/Baby Car Seats is currently being planned<br />

for September. <strong>The</strong> RSA are keen for SIMI to deliver this type <strong>of</strong><br />

training, both to heighten awareness <strong>of</strong> <strong>the</strong> safety issues and to<br />

encourage <strong>the</strong> public to look to qualified pr<strong>of</strong>essionals to advise<br />

<strong>the</strong>m in relation to Child seats in cars. Funding is being sought<br />

for this training Skillsnet, more details to follow.<br />

Please note that this list is not exhaustive as additional<br />

programmes may be run from time to time throughout <strong>the</strong> year<br />

– for fur<strong>the</strong>r details contact <strong>the</strong> Training Department SIMI 01-<br />

6761690 Email raining@simi.ie


Used car<br />

management -<br />

getting it right<br />

While <strong>the</strong>re are broad economic factors beyond<br />

<strong>the</strong> individual motor retailer’s control impacting<br />

on sales in <strong>the</strong> used car sector, this makes it all <strong>the</strong><br />

more urgent to re-examine those elements <strong>of</strong> <strong>the</strong><br />

business that <strong>the</strong> dealer can control. Pearce Flannery<br />

<strong>of</strong> Pragmatica Business Solutions spoke to Editor<br />

Bernard Potter about revisiting some tried-and-true<br />

principles to help move used car stock.<br />

<strong>The</strong> first step is to examine what contribution your own<br />

systems and practices are making to <strong>the</strong> high level <strong>of</strong> used<br />

stock. It can be surprising how a streamlining <strong>of</strong> <strong>the</strong>se systems<br />

can reduce losses and even mitigate broader market trends.<br />

According to Pearce, <strong>the</strong>re’s a detailed checklist that needs<br />

to be reviewed. Some <strong>of</strong> <strong>the</strong> points are obvious, some less<br />

so, but it’s important to thoroughly think through all factors<br />

that may be influencing <strong>the</strong> stock levels: “Is <strong>the</strong>re regular<br />

age analysis <strong>of</strong> stock? This is important. Sometimes in <strong>the</strong>se<br />

situations you find <strong>the</strong>re’s no stock turn or liquidation policy,<br />

no written appraisals or valuations.”<br />

When you look at your books, ensure that <strong>the</strong>re’s an adequate<br />

write-down against new vehicle pr<strong>of</strong>its and that your pricing<br />

policies are effective. Initiate daily progressing <strong>of</strong> used unit<br />

conditioning if it’s not already in place. Try to avoid any undue<br />

delays in deciding whe<strong>the</strong>r to trade or retail part-exchanges<br />

and <strong>the</strong>n ensure that <strong>the</strong> vehicles undergo good preparation<br />

and appearance conditioning.<br />

<strong>The</strong>re are many elements that combine to impact directly and<br />

indirectly on sales, accroding to Pearce. “It’s important to<br />

provide realistic incentives for salespeople to move overage<br />

units. <strong>The</strong>ir overall motivation is fur<strong>the</strong>r enhanced if <strong>the</strong>y see<br />

that <strong>the</strong>re’s sufficient and effective advertising being carried<br />

out to attract customers. Look again at <strong>the</strong>ir training and <strong>the</strong><br />

techniques <strong>the</strong>y’re employing. Make sure that <strong>the</strong> display area<br />

is large enough and effective in displaying <strong>the</strong> vehicles to best<br />

effect.”<br />

Ensure that <strong>the</strong>re is a balance between <strong>the</strong> number <strong>of</strong><br />

units and <strong>the</strong> level <strong>of</strong> physical and o<strong>the</strong>r resources <strong>of</strong> <strong>the</strong><br />

dealership, i.e. salesmen, display and workshops.<br />

With those supports in place, you need to look for consistent<br />

USEd CARS<br />

and effective sales enquiry follow-ups and good frequency <strong>of</strong><br />

used vehicle prospecting from <strong>the</strong> sales team. And finally look<br />

at your opening hours, are you staying open long enough and<br />

are you well resourced with sales people at lunchtimes, etc?<br />

Make certain that enquiries for vehicles not in stock are<br />

handled, as those vehicles may well be available through<br />

o<strong>the</strong>r dealers/traders. <strong>The</strong>re also needs to be a detailed<br />

awareness throughout <strong>the</strong> sales team <strong>of</strong> specific seasonal<br />

demands. Overall, monitor your sales team’s productivity.<br />

Look at your full range <strong>of</strong> options, use traders, auctions and<br />

o<strong>the</strong>r specialists to liquidate slow moving stock.<br />

Ano<strong>the</strong>r key factor to look at is your pricing, is it out <strong>of</strong> line<br />

with local competition? Are <strong>the</strong> warranty and after sales<br />

facilities acceptable? How adequate is <strong>the</strong> maintenance <strong>of</strong><br />

stock on display? It’s important that <strong>the</strong>re is a maximum level<br />

<strong>of</strong> co-operation between departments - parts/service/sales.<br />

Be careful about <strong>the</strong> units you take on, used car conditioning<br />

<strong>of</strong> low quality will cause delays while being rectified. Dealing<br />

in “problem” units with parts supply problems is ano<strong>the</strong>r<br />

drag on stock turnaround. Avoid deploying cars on <strong>the</strong> used<br />

stock list as loan cars or company transport. If used cars<br />

are employed as company or hire vehicles <strong>the</strong>n make sure<br />

that maintenance, repair, service and fuel costs are clearly<br />

identified as vehicle expenses, and not allocated to cost <strong>of</strong><br />

sales.<br />

Good information management systems are essential in <strong>the</strong><br />

drive to reduced used car stock, Pearse explains: “On <strong>the</strong> most<br />

fundamental level, sales people need up-to-date information<br />

concerning used vehicle stock. But more detailed information<br />

also needs to carefully managed. Have an efficient write-down<br />

policy for overage. Ensure that <strong>the</strong>re’s up-to-date information<br />

concerning analysis <strong>of</strong> stock by price, model, colour and type.<br />

Have sufficient pre-planning <strong>of</strong> fleet buy-backs in place to<br />

avoid creating stock imbalance.<br />

“Does your average current unit stock value relate to your<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 33 ]


USEd CARS<br />

average unit cost <strong>of</strong> sales? If it doesn’t, that implies a stock<br />

imbalance as a result <strong>of</strong> age or price. Is <strong>the</strong> gap widening when<br />

<strong>the</strong> results are trended?”<br />

<strong>The</strong> next step is to focus on your used car pr<strong>of</strong>itability. Do<br />

retail sales include any trade or semi-trade house sales? Are<br />

appraisals on part-exchanges being carried out? It’s crucial<br />

to ensure that appraisals are accurate when checked against<br />

actual reconditioning costs.<br />

Pearce advises that appraisals need to clearly identify <strong>the</strong><br />

specification (including extras) <strong>of</strong> <strong>the</strong> vehicle part-exchanged<br />

and that specification must be checked upon initial receipt<br />

<strong>of</strong> <strong>the</strong> car. Are detailed instructions given to <strong>the</strong> workshop in<br />

connection with reconditioning work? Do <strong>the</strong>se instructions<br />

relate to <strong>the</strong> original appraisal?<br />

Workshop invoices have to be checked to ensure that<br />

only instructed work has been carried out and <strong>the</strong> service<br />

department needs to keep <strong>the</strong> sales department informed <strong>of</strong><br />

any additional work required, prior to carrying out <strong>the</strong> work.<br />

Such work should only be carried out after an authorisation<br />

process from <strong>the</strong> sales department.<br />

<strong>The</strong>re are also a few important comparative checks that can<br />

be made, Pearce says. For instance, how does <strong>the</strong> cost on<br />

“non-franchise” reconditioning compare with o<strong>the</strong>r dealers?<br />

How do times charged for reconditioning work compare with<br />

<strong>the</strong> flat rate manual? How do <strong>the</strong> selling prices <strong>of</strong> used vehicles<br />

compare with o<strong>the</strong>r dealers? How do existing used stock values<br />

compare with auction prices?<br />

Look at your policy on all older trade-ins (say over two-<br />

years-old). Is <strong>the</strong>re a firm policy that all such trade-ins are<br />

appraised by <strong>the</strong> workshop? An adverse stock model mix will<br />

affect project margin. In part-exchanges, it’s vital that your<br />

salespeople are making correct valuations. If not, you need to<br />

ask are excess allowances charged against <strong>the</strong> original sale too<br />

low? A disciplined valuation policy must be put in place, Pearce<br />

emphasises. For example, potential part-exchanges, which are<br />

desirable and those which are not should be identified clearly<br />

and reflected in <strong>the</strong> valuation policy. “Valuation policy also<br />

needs to take into consideration <strong>the</strong> existing used car stock<br />

balance.”<br />

When appraising a used car it should be clearly identified<br />

whe<strong>the</strong>r it will be traded or retailed and if so, <strong>the</strong> valuation<br />

should be assessed accordingly.<br />

It’s not good enough to just accept bids from visiting traders<br />

<strong>the</strong>re has to be a thorough, disciplined trade-out policy that is<br />

clearly communicated to all <strong>the</strong> team and an implementation<br />

process that’s carefully monitored to ensure it’s adhered to.<br />

Monitoring your mark-up is ano<strong>the</strong>r important discipline.When<br />

establishing retail prices is sufficient mark-up being applied<br />

to allow for reconditioning costs? Is sufficient mark-up being<br />

applied to allow for Value Added Tax or o<strong>the</strong>r government sales<br />

taxes? Is sufficient mark-up being applied to allow for fur<strong>the</strong>r<br />

trade-ins?<br />

Re-focusing on sales, you should encourage your sales team<br />

to actively expand <strong>the</strong> number <strong>of</strong> trade contacts, particularly<br />

those with retail outlets.<br />

Constant analysis <strong>of</strong> sales also reaps benefits, for instance,<br />

[ 34 IRISH MOTOR MANAGEMENTMAY/JUNE2008 ]<br />

analysing sales to to traders to identify whe<strong>the</strong>r you are selling<br />

to any particular trader consistently at a sizeable loss or<br />

breakeven only after excessive write-down.<br />

Look at what you normally do and see where you can be<br />

innovative. Consider using auctions, o<strong>the</strong>r than car auctions, to<br />

dispose <strong>of</strong> trade vehicles. Look at <strong>the</strong> feasibility <strong>of</strong> carrying out<br />

“parcel deals” with used car traders to unload less desirable<br />

vehicles as part <strong>of</strong> an overall trade deal.<br />

Monitor <strong>the</strong> timing <strong>of</strong> fleet/lease buy-backs to ensure that used<br />

stock balance is not adversely affected.<br />

Attention to detail can add up to a significant impact on your<br />

bottom line and Pearse itemises a number <strong>of</strong> areas that can be<br />

usefully addressed:<br />

Are gross pr<strong>of</strong>it margins distorted by house charges in<br />

comparison with <strong>the</strong> composite?<br />

Do reconditioning costs included in cost <strong>of</strong> sales wholly relate<br />

to vehicles sold, or has an element <strong>of</strong> late reconditioning been<br />

included in <strong>the</strong> result?<br />

Do part-exchange values, before excess allowance write-<strong>of</strong>f,<br />

account for Road Tax refunds?<br />

Are all extras, accessories and Road Fund Tax, provided free<strong>of</strong>-charge,<br />

specified as such on <strong>the</strong> invoice and authorised by<br />

<strong>the</strong> sales manager?<br />

Is <strong>the</strong> sales invoice structured to ensure no over-payment <strong>of</strong><br />

government sales taxes?<br />

Are margins adversely affected by high reconditioning costs<br />

associated with slow moving stock?<br />

Have you checked <strong>the</strong> Used Unit Inventory Analysis to establish<br />

<strong>the</strong> extent <strong>of</strong> slow-moving stock?<br />

Do you have a policy for subsequent, additional write-down <strong>of</strong><br />

slow-moving stock?<br />

Overall, Pearce advises an approach where you re-examine<br />

all aspects <strong>of</strong> <strong>the</strong> business, obvious or not, for any hidden<br />

inefficiencies and costs, as well as hidden opportunities to<br />

enhance overall performance and pr<strong>of</strong>it delivery.<br />

He believes that effective used car management is critical<br />

to <strong>the</strong> long-term success <strong>of</strong> any motor dealership and <strong>the</strong><br />

implementation <strong>of</strong> workable used car programmes will be <strong>the</strong><br />

building blocks for dealership pr<strong>of</strong>itability in <strong>the</strong> years ahead.<br />

Pearce Flannery is <strong>the</strong> founder and Chief Executive Officer<br />

<strong>of</strong> Pragmatica, a company that provides <strong>the</strong> following<br />

services exclusively to businesses in <strong>the</strong> automotive sector:<br />

l management consulting;<br />

l training and development;<br />

l marketing development programmes; and<br />

l recruitment services.<br />

Since <strong>the</strong>ir inception in 2003 <strong>the</strong>y have developed into a<br />

leading solutions provider to <strong>the</strong> automotive sector and now<br />

have <strong>of</strong>fices in Galway (Head Office), Leixlip Co Kildare and<br />

Northampton in <strong>the</strong> united Kingdom. For fur<strong>the</strong>r information<br />

and free management advice to <strong>the</strong> motor industry log on to<br />

www.pragmatica.ie


dEALER MANAGEMENT SYSTEMS<br />

Enhancing<br />

efficiencies in<br />

your business -<br />

<strong>the</strong> dMS solution<br />

An overview <strong>of</strong> some <strong>of</strong> <strong>the</strong> leading automotive dealer management system<br />

(DMS) packages available in Ireland and a look at how <strong>the</strong>y can enhance<br />

efficiencies throughout a dealership’s processes.<br />

Given today’s competitive and demanding business<br />

environment it is important to ensure that you are<br />

maintaining maximum efficiency and dependability in your<br />

day-to-day trading. DMS packages can make a significant<br />

contribution to <strong>the</strong> achievement <strong>of</strong> practical management<br />

solutions.<br />

SCALABLe PRODuCT<br />

Autoline is described by distributors ADP Dealers Services<br />

Ireland as a proven Dealer Management System with close to<br />

three thousand installations worldwide and twenty-five years<br />

<strong>of</strong> progressive development behind it. Vanessa Worrell <strong>of</strong><br />

ADP outlines <strong>the</strong> basics <strong>of</strong> <strong>the</strong> Autoline system: “A focused<br />

and scalable product, it suits all types <strong>of</strong> outlet, single- or<br />

multi-franchise and virtually any number <strong>of</strong> locations. It<br />

has a unique track record <strong>of</strong> success, making it <strong>the</strong> widely<br />

respected benchmark standard and industry leader, with<br />

extensive manufacturer recognition and endorsement.”<br />

ADP has recently launched <strong>the</strong> Autoline System in an<br />

Application Service Provider format to <strong>the</strong> <strong>Irish</strong> market.<br />

This allows <strong>the</strong> dealer to use <strong>the</strong> Autoline System via a<br />

connection and eliminates <strong>the</strong> headache <strong>of</strong> purchasing and<br />

looking after a server and <strong>the</strong> need for any IT expertise<br />

on site, Vanessa explains. “<strong>The</strong> dealer can get on with <strong>the</strong><br />

business <strong>of</strong> selling and servicing vehicles while ADP looks<br />

after hosting <strong>the</strong>ir Dealer Management System.”<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 35 ]


dEALER MANAGEMENT SYSTEMS<br />

dealership managers<br />

and management<br />

teams now need<br />

systems which<br />

isolate problem areas<br />

immediately.<br />

uPCOMING DeVeLOPMeNTS<br />

Upcoming developments in Autoline 9304E include:<br />

l <strong>the</strong> contact management module combines with, and<br />

improves on, <strong>the</strong> call centre functionality within Autoline<br />

and highlights include integrated, simple, centralised<br />

service booking and simplified user interfaces for contact<br />

management;<br />

l <strong>the</strong> showroom module focuses on enhancements with<br />

improved searching, display, selection, communication<br />

and stock pr<strong>of</strong>iling and features such as line-by-line quote<br />

presentation and customer handover management; and<br />

l <strong>the</strong> workshop management module addresses <strong>the</strong><br />

management <strong>of</strong> exception loading situations including<br />

commercial vehicles extended repairs, production centre<br />

concept and <strong>the</strong> ability to manage a mix <strong>of</strong> repair types in<br />

a given day.<br />

[ 36 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Telephony integration is unique to this release. Integrated<br />

telephony enables outbound customer calls to be initiated<br />

from point-<strong>of</strong>-sale by clicking on <strong>the</strong> telephone icon. An<br />

inbound call will ‘screen pop’ any associated repair order<br />

allowing <strong>the</strong> user to select and load <strong>the</strong> repair order and<br />

answer <strong>the</strong> call or to redirect it.<br />

ReTAINING exISTING CuSTOMeRS<br />

Autoline’s customer relationship management (CRM) module<br />

is a comprehensive marketing and analysis tool to help<br />

improve sales performance, business processes and customer<br />

management. It incorporates a range <strong>of</strong> carefully selected<br />

facilities and enhancements especially designed to assist in<br />

capturing and analysing customer and prospect information.<br />

<strong>The</strong> customer is key to a dealer’s pr<strong>of</strong>itability and a good<br />

customer perception <strong>of</strong> <strong>the</strong> dealer is crucial. Customer


dEALER MANAGEMENT SYSTEMS<br />

facing staff have a huge impact on this<br />

perception. With telephony installed,<br />

both <strong>the</strong> user and <strong>the</strong> dealer can gain<br />

from improved customer service and<br />

increased efficiency from inbound and<br />

outbound calls. Outbound calls to a<br />

customer can be activated from point<br />

<strong>of</strong> sale, inbound calls will also ‘pop’<br />

to <strong>the</strong> user any customer details and<br />

any associated work in progress and<br />

provide options as to whe<strong>the</strong>r <strong>the</strong> call<br />

is answered or redirected.<br />

Vanessa concludes: “It is more<br />

important than ever to have an<br />

excellent CRM system which enables<br />

<strong>the</strong> dealer to keep track <strong>of</strong> every<br />

aspect <strong>of</strong> business with <strong>the</strong>ir customer.<br />

<strong>The</strong> Autoline system is a fully<br />

integrated system which addresses all<br />

<strong>of</strong> <strong>the</strong> stages in <strong>the</strong> business cycle.”<br />

AuTOMASTeR’S MODuLAR DeSIGN<br />

AutoMaster is a modern and flexible<br />

management system designed for<br />

main franchise dealers and importer<br />

business. Modularly designed, based<br />

on Windows and SQL technology,<br />

AutoMaster is a scalable solution<br />

capable <strong>of</strong> supporting large multisite,<br />

multi-franchise operations.<br />

With installations in 37 countries<br />

worldwide and integrations to over 30<br />

vehicle makes, Automaster is <strong>the</strong> most<br />

experienced Dealer Service Provider in<br />

Europe in handling <strong>the</strong> needs <strong>of</strong> multimake<br />

dealerships.<br />

In Ireland AutoMaster is distributed<br />

by Callan Computers who have<br />

supplied systems to <strong>the</strong> <strong>Irish</strong> motor<br />

trade for over 25 years. According to<br />

Don Hammond <strong>of</strong> Callan Computers:<br />

“<strong>The</strong> company has a large customer<br />

base with installations in every<br />

county in Ireland and has a tradition<br />

<strong>of</strong> supplying competitive solutions<br />

with knowledgeable staff utilising<br />

innovative and modern methodologies<br />

to maintain and support its customers.<br />

FRee PROGRAMMe uPGRADeS<br />

“AutoMaster differentiates itself<br />

from <strong>the</strong> competition by focusing<br />

on value for customers with free<br />

program upgrades, free manufacturer<br />

integration and free price updates. <strong>The</strong><br />

management system has endorsements<br />

from most <strong>of</strong> <strong>the</strong> major manufacturers<br />

in Ireland and Europe because <strong>of</strong> <strong>the</strong><br />

level <strong>of</strong> integration with <strong>the</strong> dealer<br />

facing systems,” says Don.<br />

Some <strong>of</strong> <strong>the</strong> innovative features<br />

within AutoMaster include vehicle<br />

information, which can be fed directly<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 37 ]


dEALER MANAGEMENT SYSTEMS<br />

A screenshot <strong>of</strong> Autoline’s showroom module.<br />

<strong>The</strong> Autoview perspective<br />

Walter Hinds <strong>of</strong> Systems Design, who<br />

distribute <strong>the</strong> DMS package Autoview, <strong>of</strong>fers<br />

his perspective on <strong>the</strong> sector.<br />

<strong>The</strong> retail motor business has always been a complex<br />

low margin one, where planning has to be good and<br />

mistakes are expensive. Obviously, in <strong>the</strong> current financial<br />

environment this is even more <strong>the</strong> case than ever, and <strong>the</strong><br />

dealer needs all <strong>the</strong> help he can get. It is <strong>the</strong> function <strong>of</strong><br />

<strong>the</strong> dealer management system to provide this help. Now,<br />

more than ever, <strong>the</strong> dealer needs a DMS which does more<br />

than print invoices and provide reports analysing sales and<br />

stock. Dealership managers and management teams now<br />

need systems which isolate problem areas immediately<br />

and present business options clearly. <strong>The</strong> DMS must not<br />

only answer questions asked by management, it must<br />

prompt management to ask <strong>the</strong> right questions. In <strong>the</strong><br />

current environment <strong>the</strong> questions are difficult to ask<br />

and <strong>the</strong> clarity with which data is presented is vitally<br />

important.<br />

From an operational point <strong>of</strong> view <strong>the</strong> DMS must provide<br />

enhanced capability at lower cost. Dealership staff must<br />

become more effective without increased overhead in<br />

training or support. Autoview achieves this by providing<br />

an intuitive, easy-to-use interface. Customers can be<br />

contacted by email, text or letter as <strong>the</strong> circumstances<br />

from a key reader onto a workshop job<br />

card, thus saving on duplication and<br />

typing errors<br />

AutoMaster Feelback is an automated<br />

customer satisfaction survey<br />

application. It integrates into<br />

AutoMaster processes so that <strong>the</strong><br />

customer’s feedback can be obtained<br />

directly after <strong>the</strong> customer contact.<br />

<strong>The</strong> FeelBack system will give <strong>the</strong><br />

dealer principle accurate and up-to-<br />

date satisfaction results from all areas<br />

<strong>of</strong> his business, Don explains.<br />

OTHeR FeATuReS<br />

<strong>The</strong> Call Centre feature is a multisite<br />

extension to <strong>the</strong> time reservation<br />

require, all effected by just a few clicks. Operational<br />

ease has <strong>the</strong> vital effect <strong>of</strong> enabling staff to focus on <strong>the</strong><br />

customer. Customer relationship management has always<br />

been <strong>of</strong> interest in this business but now it is regarded as<br />

a primary component <strong>of</strong> <strong>the</strong> dealerships’ business process.<br />

<strong>The</strong> Autoview system incorporates a CRM module which<br />

unites all departments in <strong>the</strong>ir approach to <strong>the</strong> customer.<br />

Now that customers have become more scarce it is<br />

necessary for all customer-facing staff to present <strong>the</strong><br />

dealerships’ unified and informed approach. At this<br />

critical time, business models must be reviewed and<br />

refined. It is necessary for management to set realistic<br />

targets and to monitor <strong>the</strong>se closely. Autoview targeting<br />

provides <strong>the</strong> means to achieve this at a detailed level<br />

with a minimum <strong>of</strong> operational cost. Here again <strong>the</strong><br />

system shifts management effort from maintaining<br />

operational control to decision making.<br />

It has <strong>of</strong>ten been said that <strong>the</strong> motor business has not<br />

developed as quickly as <strong>the</strong> computer business. Perhaps<br />

this is so in <strong>the</strong> case <strong>of</strong> computer hardware but in <strong>the</strong><br />

case <strong>of</strong> s<strong>of</strong>tware <strong>the</strong> analogy works <strong>the</strong> o<strong>the</strong>r way round.<br />

<strong>The</strong> modern motor vehicle presents a very pleasant,<br />

useful and easy to understand interface to <strong>the</strong> driver. <strong>The</strong><br />

Dealer Management System needs to do <strong>the</strong> same for its<br />

user. Autoview, in its constantly evolving form, is moving<br />

steadily in this direction.<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 39 ]


dEALER MANAGEMENT SYSTEMS<br />

module. It enables <strong>the</strong> user to manage<br />

<strong>the</strong> time reservations <strong>of</strong> several<br />

different sites by a single running<br />

application.<br />

AutoMaster messaging is an application<br />

that enables messages to be sent<br />

through SMS to a customer’s mobile<br />

phone or email.<br />

AutoMaster mobile computing features<br />

<strong>the</strong> option to utilise portable and<br />

wireless readers. Using <strong>the</strong>se units <strong>the</strong><br />

central business processes <strong>of</strong> parts<br />

sales can be managed from anywhere<br />

in <strong>the</strong> workshop or parts stock area in<br />

real time.<br />

<strong>The</strong> AutoMaster ASP service centre has<br />

[ 40 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

been created to <strong>of</strong>fer dealers a modern<br />

information system cost effectively<br />

and without risk. Customers can safely<br />

concentrate on <strong>the</strong>ir core competence<br />

when a pr<strong>of</strong>essional Automaster<br />

solution provider is handling <strong>the</strong>ir<br />

information technology needs.<br />

eService is a fully integrated webbased<br />

time reservation management<br />

system for workshops, which gives<br />

customers a convenient and fast way<br />

to make reservations for service and<br />

repairs<br />

eStock is an application which replaces<br />

partly or completely <strong>the</strong> customer’s<br />

parts ordering process.<br />

Boyne<br />

valley Cars<br />

Boyne Valley Cars, who first<br />

opened <strong>the</strong>ir doors for business<br />

in January 2007, selected<br />

Automaster as <strong>the</strong>ir dealer<br />

management system. As a<br />

new entrant to automotive<br />

retailing in Co. Louth, <strong>the</strong>y<br />

needed a system that fitted <strong>the</strong><br />

pr<strong>of</strong>ile <strong>of</strong> <strong>the</strong>ir business and<br />

one which not only provided<br />

strong management control,<br />

but could aid <strong>the</strong>m in delivering<br />

exponential growth through<br />

structured marketing, lead<br />

generation and customer<br />

management.


TRACS was introduced following <strong>the</strong> new Waste Management<br />

Regulations in January 2008 to monitor <strong>the</strong> movement <strong>of</strong><br />

waste tyres within <strong>the</strong> industry, promote <strong>the</strong>ir legitimate<br />

reuse and encourage recycling.<br />

<strong>The</strong>re are over 35,000 tonnes <strong>of</strong> waste tyres generated in<br />

Ireland each year and this was uncontrolled. It was not<br />

known where significant numbers <strong>of</strong> waste tyres were ending<br />

up. <strong>The</strong> tyre industry recognised its responsibility in this<br />

area so <strong>the</strong>y approached <strong>the</strong> Government and proposed a<br />

voluntary industry initiative to track all <strong>of</strong> <strong>the</strong> tyres and<br />

waste tyres on <strong>the</strong> market.<br />

Following discussions between <strong>the</strong> Department <strong>of</strong> <strong>the</strong><br />

Environment and relevant stakeholders, and a public<br />

consultation process, regulations on <strong>the</strong> monitoring <strong>of</strong> tyres<br />

and waste tyres came into force on January 1st, 2008. <strong>The</strong>se<br />

regulations support <strong>the</strong> environmentally sound management<br />

<strong>of</strong> waste tyres by providing a regulatory framework for<br />

comparing quantities <strong>of</strong> waste tyres arising with <strong>the</strong><br />

quantities placed on <strong>the</strong> market and in tracking <strong>the</strong>ir<br />

movement.<br />

TRACS<br />

TRACS keeps waste tyre<br />

management on track<br />

TRACS, <strong>the</strong> Tyre Recovery Activity Compliance Scheme, is a voluntary compliance scheme for tyre industry<br />

operators. Fiacra Quinn, Director, TRACS writes about <strong>the</strong> background to <strong>the</strong> development <strong>of</strong> <strong>the</strong> scheme and<br />

explains how it works and <strong>the</strong> benefits he believes it delivers.<br />

TRACS was approved by <strong>the</strong> Minister for <strong>the</strong> Environment<br />

John Gormley in January 2008. Since it has been established,<br />

over 300 importers, manufacturers, retailers and waste<br />

collectors have registered with TRACS so we have surpassed<br />

our target <strong>of</strong> 50% <strong>of</strong> operators by <strong>the</strong> middle <strong>of</strong> 2008 and are<br />

well on track to register all tyre industry operators by <strong>the</strong><br />

end <strong>of</strong> <strong>the</strong> year.<br />

<strong>The</strong>re are enormous benefits for operators registering with<br />

TRACS. <strong>The</strong> regulations impose obligations on people who<br />

supply tyres to <strong>the</strong> <strong>Irish</strong> market, whe<strong>the</strong>r as manufacturers,<br />

wholesalers, suppliers, traders or retailers, and on <strong>the</strong><br />

collectors <strong>of</strong> waste tyres. <strong>The</strong>se obligations include <strong>the</strong><br />

submission <strong>of</strong> information as prescribed in <strong>the</strong> regulations,<br />

and in <strong>the</strong> format provided for in <strong>the</strong> guidance concerning<br />

SI 664 <strong>of</strong> 2007, by <strong>the</strong> 10th day <strong>of</strong> each quarterly period.<br />

<strong>The</strong>y will also be required to prepare and present waste<br />

management plans and reports when submitting applications<br />

for registration and submit a report to <strong>the</strong> EPA by <strong>the</strong><br />

28th <strong>of</strong> February each year. Anyone who registers with<br />

TRACS is exempt from <strong>the</strong>se obligations. TRACS will report<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 41 ]


TRACS<br />

collectively and in aggregate on tyres placed on <strong>the</strong> <strong>Irish</strong><br />

market, waste tyre collection and subsequent recycling on<br />

behalf <strong>of</strong> its members.<br />

Tyre industry operators who have already joined recognise<br />

<strong>the</strong> benefits <strong>of</strong> being registered with TRACS as it means<br />

<strong>the</strong>y are exempt from <strong>the</strong> preparation <strong>of</strong> <strong>the</strong>se reports and<br />

submission <strong>of</strong> paperwork which can be very time consuming.<br />

We are now calling on those that have not yet registered<br />

to come on board as we can save <strong>the</strong>m time and money<br />

and ensure that <strong>the</strong>ir obligations are being met. At €125<br />

per annum for retailers and 8c per tyre for importers <strong>the</strong><br />

cost is relatively low, it ensures compliance and reduces<br />

administration so, all in all, it is very beneficial for all<br />

concerned. Ano<strong>the</strong>r benefit is that <strong>the</strong> regulations don’t<br />

impose an environmental levy but allow <strong>the</strong> market to<br />

decide <strong>the</strong> cost <strong>of</strong> collection and reprocessing. This means<br />

retailers now have <strong>the</strong> legitimate ability to cover a waste<br />

management overhead.<br />

So what exactly does TRACS require from each participant?<br />

To reconcile <strong>the</strong> mass flow <strong>of</strong> tyres through <strong>the</strong> supply<br />

chain, all we require is information from each operator on<br />

quantities and categories <strong>of</strong> tyres being supplied in Ireland<br />

from point <strong>of</strong> import. Concerns were raised over what<br />

information would be required from importers but all we<br />

need to know is that <strong>the</strong> tyres were imported and not <strong>the</strong><br />

country <strong>of</strong> origin, supplier details or <strong>the</strong> brand <strong>of</strong> tyres that<br />

have been imported. Also, we do not need to know anything<br />

concerning values or commercial arrangements.<br />

After import, TRACS needs to know additional details <strong>of</strong><br />

tyres sourced in <strong>the</strong> country for wholesale concerning where<br />

<strong>the</strong> tyres came from and where <strong>the</strong>y are going to. At <strong>the</strong><br />

point <strong>of</strong> retail, TRACS needs to know additional details<br />

<strong>of</strong> tyres sourced in <strong>the</strong> country for replacement fitting,<br />

concerning only where <strong>the</strong> tyres came from, but not <strong>the</strong><br />

customer, as it is at this point that a waste tyre is generated<br />

from a replacement fitting. Fur<strong>the</strong>r information is required<br />

from <strong>the</strong> waste collector concerning customers collected<br />

from, quantities and categories. In this way <strong>the</strong> movement<br />

<strong>of</strong> tyres through <strong>the</strong> supply chain will be reconciled. Some<br />

may have difficulties with providing this information, but<br />

TRACS is <strong>the</strong>re to help and be as flexible as possible.<br />

Some concerns have also been voiced over security but<br />

TRACS has adopted best-in-practice security and data<br />

management systems and procedures to ensure that any<br />

information submitted by members is kept completely<br />

confidential and secure. Strict controls ensure no<br />

information can be reproduced o<strong>the</strong>r than in aggregate as<br />

required under <strong>the</strong> regulations. Anonymity is guaranteed.<br />

<strong>The</strong> waste tyres currently generated per annum in Ireland<br />

can be put to many beneficial uses. Crumb obtained from<br />

recycled tyres has many uses such as in playgrounds, as<br />

equine bedding or on football pitches. Tyres can also be<br />

baled for engineering purposes.<br />

Farmers use waste tyres to anchor silage and <strong>the</strong>y are used<br />

at marinas as boat fenders. <strong>The</strong> regulations make provision<br />

[ 42 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

to enable <strong>the</strong> farmer to store up to eight waste tyres for<br />

every square metre <strong>of</strong> his silage pit without <strong>the</strong> need for a<br />

waste permit. Farmers cannot obtain waste tyres directly<br />

from a retailer anymore, but must obtain <strong>the</strong>se tyres from<br />

a registered waste collector. O<strong>the</strong>rs requiring waste tyres<br />

for genuine re-use can source waste tyres subject to <strong>the</strong><br />

approval <strong>of</strong> local authorities and compliance with waste<br />

permit regulations.<br />

TRACS is a not-for-pr<strong>of</strong>it audited company that has been<br />

approved by <strong>the</strong> Minister as a compliance scheme. It has<br />

a required number <strong>of</strong> subscribers (trustees) and a Board<br />

comprising independents and some involved in <strong>the</strong> tyre<br />

industry. Subscribers and/or Board Members from <strong>the</strong> tyre<br />

industry have no involvement in <strong>the</strong> day-to-day management<br />

and operation <strong>of</strong> TRACS.<br />

Independent directors include Brian Cooke <strong>of</strong> SIMI, who will<br />

also chair sub-committees. This is <strong>the</strong> initial structure <strong>of</strong><br />

TRACS, but we would like to see as wide a representation<br />

as possible on <strong>the</strong> board and encourage active participation<br />

from all members.<br />

CONTACT<br />

TyRe SPIN<br />

l Over 35,000 tonnes <strong>of</strong> waste<br />

tyres generated each year<br />

l TRACS approved by Minister<br />

for Environment Gormley in<br />

January<br />

l 300-plus importers,<br />

manufacturers,<br />

retailers and waste collectors<br />

registered so far<br />

l Crumb from recycled tyres<br />

has uses in playgrounds and<br />

on football pitches<br />

For any queries about TRACS please contact:<br />

Brenda Maher<br />

TRACS<br />

Unit 25, Guinness Enterprise Centre,<br />

Taylor’s Lane, Dublin 8.<br />

Tel: 353 (0)1 4100601<br />

Fax: 353 (0)1 4100550<br />

Email: brenda.maher@tracsireland.ie<br />

www.tracsireland.ie


<strong>The</strong> cars were made from wood and <strong>the</strong> objectives<br />

were clear – safety, efficiency, accuracy and quality.<br />

Talking about build quality is always somewhat subjective.<br />

If something feels well built it tends to come from Germany<br />

and it tends to have a very solid feel to it. But why is that?<br />

Well thanks to my new certificate I know why.<br />

At Opel’s Rüsselsheim manufacturing plant we were given<br />

<strong>the</strong> task <strong>of</strong> learning <strong>the</strong> essential assembly skills required<br />

to make an Opel that meet <strong>the</strong> company’s standards <strong>of</strong><br />

excellence at its Simulated Work Environment (SWE) Training<br />

Centre. We split up into teams and each team was assigned<br />

a team leader who would show us how <strong>the</strong> assembly line<br />

would work and what our task was. <strong>The</strong> cars were made<br />

from wood and <strong>the</strong> objectives were clear – safety, efficiency,<br />

accuracy and quality.<br />

I got a power screwdriver, which will obviously make any guy<br />

happy. With it, I had to remove <strong>the</strong> screws and ‘lights’ and<br />

‘bumpers’ from <strong>the</strong> cars as <strong>the</strong>y passed <strong>the</strong> assembly and put<br />

BUILdING A CAR IN OPEL<br />

<strong>The</strong> team from Ireland listen carefully to <strong>the</strong>ir instructor in <strong>the</strong><br />

Simulated Work Environment (SWE) Training Centre.<br />

Pull <strong>the</strong> handle to get<br />

<strong>the</strong> quality right<br />

Paddy Comyn visited Opel’s Rüsselsheim plant where he uncovered some <strong>of</strong> <strong>the</strong> marque’s manufacturing<br />

secrets.<br />

<strong>the</strong> parts into <strong>the</strong> right boxes. Sounds easy enough, but our<br />

team failed miserably on <strong>the</strong> first round.<br />

Our team leader Harald, who was short on English, but<br />

scared me enough to want to work harder, pointed out that<br />

we had failed through lack <strong>of</strong> attention. <strong>The</strong> training drills<br />

show that glitches and flaws are not tolerated. “We really<br />

make <strong>the</strong> point to our workers on <strong>the</strong> line not to create any<br />

quality problems, not to accept any cars with any potential<br />

problems and certainly not to pass <strong>the</strong>m on,” explains Ralk<br />

Tischka, Opel’s Director <strong>of</strong> Programme Quality for Global<br />

Mid-Size Cars.<br />

Each worker on <strong>the</strong> line has <strong>the</strong> ability to stop <strong>the</strong> line if<br />

<strong>the</strong>y find a problem. If you spot an issue <strong>the</strong>re is a cord<br />

above your head, known as <strong>the</strong> ANDON cord, which, when<br />

pulled, alerts a team leader who can halt production to help<br />

put a problem right. Our team didn’t pull <strong>the</strong> handle enough<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 43 ]


BUILdING A CAR IN OPEL<br />

in light <strong>of</strong> <strong>the</strong> problems spotted later. After a post-mortem<br />

a new procedure plan was hatched, which involved simple<br />

changes to <strong>the</strong> line up.<br />

Changing small things, like where we placed our hands, how<br />

we used our drill and where we stood, improved safety,<br />

productivity and <strong>the</strong> all-important ability to spot and<br />

counter mistakes. After three hours I joined 5,355 people<br />

with a “zertifikat” in quality systems. I felt ra<strong>the</strong>r proud,<br />

even if I am not quite ready to join <strong>the</strong> factory floor just<br />

yet.<br />

THe ANDON SySTeM<br />

According to <strong>the</strong> company, <strong>the</strong> GM Global Manufacturing<br />

System is an important building block <strong>of</strong> an integrated<br />

strategy to develop products that excite customers in<br />

markets around <strong>the</strong> world. GM is bringing toge<strong>the</strong>r what it<br />

calls <strong>the</strong> best, most competitive manufacturing practices<br />

from around <strong>the</strong> world and leveraging what it has learned as<br />

it moves to a common global manufacturing system for all <strong>of</strong><br />

its new plants and existing facilities.<br />

When implemented, <strong>the</strong> objective is that <strong>the</strong> GMS principles<br />

should maximise performance in <strong>the</strong> areas <strong>of</strong> people<br />

systems, safety, quality, customer responsiveness and cost.<br />

At <strong>the</strong> heart <strong>of</strong> <strong>the</strong> system is <strong>the</strong> operator in <strong>the</strong> plant - <strong>the</strong><br />

person who builds <strong>the</strong> vehicles. Plants and processes are<br />

designed around providing support for <strong>the</strong> operators and<br />

teams on <strong>the</strong> plant floor, so <strong>the</strong>y can efficiently build great<br />

vehicles that provide customers with top quality, value<br />

and responsiveness. In accordance with <strong>the</strong> GM Global<br />

Manufacturing System, every employee on <strong>the</strong> production<br />

l i n e i s o b l i g a t e d t o p u l l t h e A N D O N c o r d i f a p r o b l e m o c c u r s .<br />

ANDON is a manufacturing term referring to a signboard<br />

incorporating signal lights, audio alarms, and text or o<strong>the</strong>r<br />

displays installed at a workstation to notify management and<br />

o<strong>the</strong>r workers <strong>of</strong> a quality or process problem. GM’s Quality<br />

and Material ANDON system consists <strong>of</strong> two similar but<br />

separate subsystems. <strong>The</strong> Quality ANDON subsystem enables<br />

employees to request help when a product or process quality<br />

problem is identified. <strong>The</strong> action <strong>of</strong> pulling a cord sends a<br />

[ 44 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

signal back to <strong>the</strong> operator interface, illuminating a section<br />

<strong>of</strong> a large display called an ANDON board that indicates<br />

where <strong>the</strong> problem exists along <strong>the</strong> production line. It also<br />

sounds an audio alert.<br />

<strong>The</strong> Quality ANDON subsystem supports <strong>the</strong> synchronous<br />

manufacturing principles <strong>of</strong> built-in-quality, utilising<br />

in-station repair ra<strong>the</strong>r than final process repair. <strong>The</strong><br />

Material ANDON subsystem allows each production area<br />

to automatically or manually request material before<br />

inventory is completely consumed. Employees manually<br />

request more material by pressing a button. <strong>The</strong> manual or<br />

automatic request sends a signal back to <strong>the</strong> Material ANDON<br />

System, which displays <strong>the</strong> request in <strong>the</strong> material storage<br />

area. ‘Driverless carriages’ <strong>the</strong>n deliver <strong>the</strong> requested<br />

material to <strong>the</strong> location, again supporting <strong>the</strong> synchronous<br />

manufacturing principles <strong>of</strong> just-in-time delivery.<br />

Both <strong>the</strong> Quality and Material ANDON systems feature a<br />

built-in tracking and reporting capability that compiles <strong>the</strong><br />

number <strong>of</strong> ANDON calls, <strong>the</strong> number <strong>of</strong> line stops, and <strong>the</strong><br />

resulting downtime. Problems are detected and resolved<br />

quickly and inventory is minimised. <strong>The</strong> ANDON system<br />

avoids <strong>the</strong> high cost <strong>of</strong> idle equipment and people due to<br />

production problems and drastically reduces <strong>the</strong> opportunity<br />

for errors and necessity <strong>of</strong> re-work.<br />

“Respect good ideas and stable processes, but, particularly<br />

in terms <strong>of</strong> quality, control is always good,” says GM<br />

Poland Managing Director and Opel Poland Plant Director<br />

Romuald Rytwiński. In line with this, GM has European<br />

Quality Calibration Auditors, who arrive unannounced to<br />

look over <strong>the</strong> shoulders <strong>of</strong> <strong>the</strong> quality auditors in each<br />

individual plant. Should <strong>the</strong>y identify deficiencies in a car<br />

deemed defect-free by <strong>the</strong> internal quality audit, “things<br />

get uncomfortable”, says Rytwiński. To view quality only in<br />

terms <strong>of</strong> production quality would certainly not be enough.<br />

“It is very clear to us that we can only make significant<br />

progress in <strong>the</strong> various aspects <strong>of</strong> quality when we also<br />

completely satisfy our customers regarding what we call<br />

perceptual quality and <strong>the</strong> entire image <strong>of</strong> <strong>the</strong> car,” says<br />

Rytwiński.<br />

Paddy’s “zertifikat” in quality systems.


<strong>Irish</strong> <strong>Motor</strong> Management has an unrivalled readership <strong>of</strong> motor industry pr<strong>of</strong>essionals. If you<br />

have a vacancy at any level and wish to attract only <strong>the</strong> highest calibre <strong>of</strong> applicants, <strong>the</strong>n<br />

contact Commercial Director, Rebecca Markey, on 01-2893305 to place your advertisement<br />

and avail <strong>of</strong> <strong>the</strong> special recruitment rates available to SIMI members.


Recent figures compiled by <strong>the</strong> Central Statistics Office indicate that 180,872<br />

new cars were registered in Ireland during 2007<br />

Each entrepreneur may have a different long-term goal for<br />

<strong>the</strong>ir business. Some may wish to realise value through selling<br />

<strong>the</strong> business. O<strong>the</strong>rs wish to pass it on to a partner or family<br />

member. <strong>The</strong> operations <strong>of</strong> an owner-managed business<br />

should be geared towards achieving <strong>the</strong> owner’s long-term<br />

goals for <strong>the</strong> business. Business owners must plan to ensure<br />

<strong>the</strong>y reap <strong>the</strong> rewards <strong>of</strong> <strong>the</strong>ir years <strong>of</strong> work and effort. This<br />

is particularly relevant for owners <strong>of</strong> <strong>the</strong> many motor retailer<br />

businesses in Ireland.<br />

CuRReNT TReNDS<br />

Recent figures compiled by <strong>the</strong> Central Statistics Office<br />

indicate that 180,872 new cars were registered in Ireland<br />

during 2007, <strong>the</strong> highest figure since a record 225,000 in 2000.<br />

<strong>The</strong> number <strong>of</strong> new cars licensed during <strong>the</strong> period starting<br />

1 January 2008 and ending 30 April 2008 decreased by 7.9<br />

percent compared with <strong>the</strong> same period during 2007. <strong>The</strong><br />

<strong>Motor</strong><br />

FINANCE<br />

retailers -<br />

achieving<br />

long-term<br />

goals<br />

Michael Neary, corporate finance partner with Grant<br />

Thornton, writes about <strong>the</strong> importance <strong>of</strong> long-term<br />

planning in ensuring that a motor retailer’s financial<br />

strategy is effective and successful.<br />

2008 figures represent a 1.8 percent decline for same period<br />

during 2006. However, car sales are typically strong during<br />

this period. As a result, <strong>the</strong> performance <strong>of</strong> <strong>the</strong> motor retail<br />

industry for <strong>the</strong> remainder <strong>of</strong> 2008 is difficult to predict. It<br />

appears <strong>the</strong> used car market is one that smaller dealers must<br />

aim to develop as consumers become more price conscious in<br />

an uncertain economic period.<br />

ReLATIONSHIP WITH BANK<br />

<strong>The</strong>re are many specific issues which motor retailers must<br />

deal with. <strong>Motor</strong> retailers can be asset rich and cash poor<br />

businesses. Due to <strong>the</strong> nature <strong>of</strong> <strong>the</strong>ir business, motor<br />

retailers must maintain a good relationship with <strong>the</strong>ir banks.<br />

A flexible relationship helps <strong>the</strong> business to operate in an<br />

efficient and pr<strong>of</strong>itable manner.<br />

Managing <strong>the</strong> bank’s expectations in <strong>the</strong> short-term and<br />

presenting <strong>the</strong> business as a viable long-term entity are<br />

key functions for motor retailers. A good business plan can<br />

persuade <strong>the</strong> bank <strong>of</strong> <strong>the</strong> business’ prospects and lay <strong>the</strong><br />

foundation <strong>of</strong> a good working relationship between <strong>the</strong> two<br />

parties.<br />

LONG-TeRM PLANS<br />

It is important that motor retailers consider <strong>the</strong>ir ultimate<br />

ambitions for <strong>the</strong>ir business. Many car dealers operate <strong>the</strong>ir<br />

business on a short-term basis without considering how <strong>the</strong>y<br />

intend to get rewarded for <strong>the</strong>ir years <strong>of</strong> hard work. <strong>The</strong>y may<br />

wish to retire comfortably with <strong>the</strong> returns from a pr<strong>of</strong>itable<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 47 ]


FINANCE<br />

business, sell <strong>the</strong>ir business or simply pass a strong business<br />

on to a family member.<br />

CASe STuDy<br />

John Smith,* 55, owned and managed a successful car<br />

dealership in Dublin for more than 30 years. John had pension<br />

investments valued at €450k. He also owns some commercial<br />

and residential properties in Dublin valued at €2.1m. <strong>The</strong>re<br />

were mortgages <strong>of</strong> €1.5m outstanding on <strong>the</strong>se apartments.<br />

John’s business had a turnover <strong>of</strong> €15m in <strong>the</strong> most recent<br />

financial year and an operating loss <strong>of</strong> €250k principally<br />

due to used car stock write downs. Also, John’s bank was<br />

beginning to put pressure on him with regards to <strong>the</strong> various<br />

facilities both he and <strong>the</strong> business, had with <strong>the</strong> bank. <strong>The</strong><br />

company owned a premises worth €3m and <strong>the</strong>re was €1.5m<br />

<strong>of</strong> loans outstanding. <strong>The</strong>re was €500k worth <strong>of</strong> used cars and<br />

<strong>the</strong> stocking loan was €400k and <strong>the</strong> business was close to its<br />

maximum overdraft level.<br />

<strong>The</strong> company and John personally owe <strong>the</strong> bank a good level<br />

<strong>of</strong> debt. John was very anxious about <strong>the</strong> performance <strong>of</strong><br />

<strong>the</strong> business. He decided to approach Grant Thornton to help<br />

ease <strong>the</strong> pressure from <strong>the</strong> banks and to help him plan his<br />

retirement.<br />

[ 48 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

To achieve this we set about preparing a paper to outline<br />

<strong>the</strong> options. Once a clear strategy was agreed we prepared<br />

a business plan which included cutting costs and dropping<br />

unpr<strong>of</strong>itable business lines. <strong>The</strong> plan highlighted how <strong>the</strong> bank<br />

was to be repaid. John’s bank was satisfied that <strong>the</strong> business<br />

plan was achievable.<br />

This eased <strong>the</strong> pressure on John and <strong>the</strong> business<br />

considerably. <strong>The</strong> business plan, and options paper helped<br />

John to manage his business in line with his long-term goals.<br />

John recalls <strong>the</strong> positive impact Grant Thornton had on his<br />

situation at <strong>the</strong> time.<br />

*Although <strong>the</strong> name is fictitious, this case study is based on a composite <strong>of</strong><br />

client situations.<br />

Michael Neary is a corporate<br />

finance partner with Grant<br />

Thornton, he has advised<br />

several motor retailers.<br />

Michael can be contacted<br />

at 01 6805797 or<br />

michael.neary@grantthornton.ie


<strong>The</strong> IMCTGA is recognised as a major association for <strong>the</strong> <strong>Irish</strong><br />

<strong>Motor</strong> <strong>Industry</strong>. While it is primarily a golfing association,<br />

it also provides a social element for <strong>the</strong> wide range <strong>of</strong> its<br />

membership which includes golfers <strong>of</strong> all ages, both male and<br />

female, currently working in <strong>the</strong> motor industry as well as<br />

many who are enjoying retirement from it.<br />

This year’s President, Fergus Murphy, is renewing <strong>the</strong> request<br />

made a couple <strong>of</strong> years ago by Gerry Caffrey <strong>the</strong> <strong>the</strong>n<br />

president <strong>of</strong> <strong>the</strong> IMCTGA to recruit new members into <strong>the</strong><br />

Golfing Association.<br />

While we still have a good membership we do need more<br />

people playing in our various outings at top class golf courses<br />

throughout <strong>the</strong> country.<br />

We need to increase our membership to add to <strong>the</strong> enjoyment<br />

<strong>of</strong> <strong>the</strong> various outings. We can accommodate up to 128 people<br />

for our shotgun start outings which we are arranging more<br />

so now than ever before. This enables members to enjoy<br />

dinner as a group after golf and gives us <strong>the</strong> opportunity to<br />

acknowledge our sponsors in a proper manner.<br />

<strong>The</strong> President is appealing to all <strong>of</strong> our current members to<br />

contact a friend or colleague in <strong>the</strong> industry and who would<br />

like to join our Association. This appeal for new members<br />

will increase <strong>the</strong> numbers <strong>of</strong> our already well-supported<br />

Association and will be to <strong>the</strong> benefit <strong>of</strong> all.<br />

New members will be most welcome provided <strong>the</strong>y are<br />

recognised with a GUI handicap. <strong>The</strong>y need not be <strong>the</strong> world’s<br />

best golfers as long as <strong>the</strong>y are happy to be in good company<br />

SPORTS & SOCIAL<br />

Are you a golfer?<br />

Join now and enjoy all <strong>the</strong> benefits <strong>of</strong> membership <strong>of</strong> <strong>the</strong> IMCTGA<br />

Recently elected President <strong>of</strong> <strong>the</strong> <strong>Irish</strong> <strong>Motor</strong> & Cycle Trades Golfing Association, Fergus Murphy, extends an<br />

invitation to golfers in <strong>the</strong> motor industry holding a GUI handicap to consider joining one <strong>of</strong> <strong>the</strong> oldest and<br />

largest golfing associations in Ireland, established in 1914.<br />

and enjoy a great day’s golfing<br />

This September we will be travelling to County Wexford,<br />

to <strong>the</strong> famous links <strong>of</strong> Courtown and our second day’s play<br />

will be at <strong>the</strong> Seafield Golf and Country Club. Our Christmas<br />

outing is <strong>of</strong> course <strong>the</strong> highlight for all our members and is<br />

scheduled this year to take place at <strong>the</strong> home <strong>of</strong> <strong>the</strong> AIB<br />

<strong>Irish</strong> Ladies Open, Portmarnock Hotel and Golf Links in early<br />

December.<br />

We are fortunate to have on board again this year a great<br />

line-up <strong>of</strong> very generous sponsors, such as Independent<br />

Newspapers, Coyle Hamilton Willis, Hibernian Insurance,<br />

Friends First, ADP Dealer Services Ltd., Goodyear Dunlop,<br />

Gowan Distributors and A D Ireland. <strong>The</strong>se very generous<br />

sponsors continue to support and enable us to provide top<br />

class outings at top class venues for all members. Because <strong>of</strong><br />

this, it is important that we support when at all possible all <strong>of</strong><br />

<strong>the</strong>se companies who give our Association great support.<br />

We are constantly looking for new sponsors who will add to<br />

<strong>the</strong> overall enjoyment <strong>of</strong> <strong>the</strong> Association and would welcome<br />

<strong>the</strong> opportunity to discuss sponsorship options with any<br />

potential sponsors.<br />

As Fergus points out, “it is not all about winning or indeed<br />

golf. Everyone is made to feel extremely welcome no matter<br />

what <strong>the</strong>ir golf handicap may be.” So why not consider<br />

becoming a member <strong>of</strong> this illustrious Golfing Association by<br />

contacting Con Dalton, Secretary IMCTGA at <strong>the</strong> SIMI Offices<br />

on 01-6761690 or e-mail: cdalton@simi.ie<br />

Competition - Win a dvd player<br />

What car am I?<br />

I’m my company’s response to <strong>the</strong> Mini. My name combines references to two Italian<br />

cities, one where I was designed, and <strong>the</strong> o<strong>the</strong>r where I was built. My petrol versions<br />

are a normally aspirated 1.4-litre engine with 95bhp and two turbo-charged versions<br />

with 120 bhp and 155bhp. I’m arriving in Ireland next January and will boast a number<br />

<strong>of</strong> technological innovations including, a device that acts on my engine, brakes,<br />

steering, suspension and gearbox, allowing for three different vehicle behaviours for<br />

performance situations, normal situations and tough wea<strong>the</strong>r conditions. What car am I?<br />

If you think you know <strong>the</strong> make and model mentioned here, <strong>the</strong>n e-mail your entry<br />

along with your name, address and telephone number to bernard@ifpmedia.com or fax<br />

it to 01-2896406 by September 5th. Good luck!<br />

[ IRISH MOTOR MANAGEMENTJULY/AUGUST2008 49 ]


SPORTS & SOCIAL<br />

Pictured (l-r): Damien Smyth, Airside Ford, receiving <strong>the</strong> Dunlop Cup from <strong>the</strong> President <strong>of</strong> <strong>the</strong> <strong>Irish</strong><br />

<strong>Motor</strong> & Cycle Trades Golfing Association (IMCTGA) Fergus Murphy, following his win at <strong>the</strong> IMCTGA<br />

outing at <strong>the</strong> Hermitage Golf Club in June. Many thanks to our sponsors on <strong>the</strong> day - Independent<br />

Newspapers, Coyle Hamilton Willis and Hibernian Insurances..<br />

Terry Lilly, Terry Lilly Commercials, Dublin with Peter Mongey,<br />

Mongey Plunkett <strong>Motor</strong>s, Dublin on <strong>the</strong> Hermitage outing.<br />

(L-r): Declan McVeigh, Drogheda, Keith Martin,<br />

Dublin and Michael Holcr<strong>of</strong>t, Drogheda.<br />

[ 50 IRISH MOTOR MANAGEMENTJULY/AUGUST2008 ]<br />

Enjoing <strong>the</strong> day’s golf (L-r): Brian O’Neill, Tech-Plus Ltd., Joe Donnelly,<br />

Cr<strong>of</strong>ton <strong>Motor</strong>s, Tom Shanahan, Tool Auto Equipment<br />

and Terry Lilly,Terry Lilly Commercials.<br />

(L-r): Fergus Murphy, President IMCTGA, Jim Farrell,<br />

<strong>Motor</strong> Distributors Ltd. and Joe O’Grady.

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