A shock to the automotive value chain was General Motors’ (GM) decision to retire the Holden brand from the Australian and New Zealand markets with local design and engineering operations to be wound down by 2021.

The company assured customers and current vehicle owners that warranties and service offers made at time of sale would be honoured and that it would provide servicing and spare parts for at least 10 years.

The decision is a major and unexpected blow, impacting dealers, third-party businesses, suppliers, staff and consumers alike. One of the MTA Queensland members recently invested in a new multimillion-dollar Holden fit-out at their dealership which will not realise its original purpose. Whilst compensation between the parent body and dealers/other parties will be confidential, Australian Automotive Dealers Association Queensland (AADA QLD) Chair James Robertson and I will be vigilant, and forthright in our advocacy for exit arrangements to be equitable. Concerns are already emerging. The AADA (national) representatives and the Holden Council met with Prime Minister Scott Morrison and Industry Minister Karen Andrews to advise of the ‘grossly inadequate’ compensation packages offered to dealers by GM. The Government has confirmed that a Senate Inquiry will examine the approach by GM to which we will provide a submission and give evidence at a hearing on behalf of our AADA QLD members.

Undoubtedly, we’ve been preoccupied by the effect of drought, fires, storms, floods, the coronavirus, and GM’s announcement on members’ businesses and representing the impacts of these in submissions to government and agencies. We have also been busy taking action on progressing member values of being ‘proactive’ and ‘innovative’ and pursuing the Business Excellence goals stipulated in the 2019-2021 Strategic Plan.

Green Distillation Technologies Corporation

An ongoing concern for members has been the actual disposal of end-of-life tyres. This has been the subject of ongoing research and consideration of several technologies. At last, a successful technological solution has emerged. The Association had observed the progress of Green Distillation Technologies Corporation (GDTC) at Warren, New South Wales to effectively and profitably recycle end-of-life car and truck tyres (ELT) into saleable commodities of oil, carbon and steel. Based on initial research, the MTA Queensland board resolved to undertake a three-month period of due diligence, which included a site visit with directors and executives to the Warren plant.

At its 20 February 2020 meeting, the MTA Queensland board considered extensively the opportunity to capitalise in the innovative technology and resolved to invest. In its deliberations, the board noted: the investment satisfied the Association’s diversification strategy; the technological solution to the waste liability of 24 million tyres per year; that tyre technology is one of the stable commodities and waste and recycling must be addressed; the need to take a leadership position on reducing the landfill and export demand; the technology is cutting edge and has zero emissions in the recycling process; and 100 per cent of the tyre is recycled producing three saleable commodities – oil, carbon and steel.

GDTC has a contract in place with an Australian oil refiner to purchase all oil produced by the plants in Australia at an agreed price benchmarked against Independent Commodity Intelligence Services Fuel Oil 3.5 per cent and includes a 3 per cent renewable fuel levy. It also has an offer from a steel manufacturing business for the carbon as a substitute or to blend with other carbon.

The medium-term outlook is for GDTC to have a pipeline of seven plants to operate across Australia, and there are five target locations including at Mackay. An Environmental Authority Permit and Development Approval has been granted for the construction of GDTC’s second plant at Toowoomba. Each plant processes approximately four per cent of Australia’s annual waste tyres which allows considerable scope for growth.

The decision by the MTA Queensland board is far-reaching. The investment in the GDTC innovative technology is a new commercial business activity for the Association and addresses the acute automotive environmental problem of the disposal of end-of-life tyres within the new paradigm of the circular economy. This entails gradually decoupling economic activity from the consumption of finite resources, and commercialising waste from the system. It is based on three principles of: reduce waste and pollution; keep products and materials in use; and regenerate natural systems.

Carmageddon4

There will be a Carmageddon4 event to build on the series of symposiums commenced in March 2017. Specifically, this is to inform members and stakeholders on current and future technological and mobility transformations that will impact the automotive industry and the economy.

Carmageddon4, to be held on Thursday 23 July commencing at 9am at the Sir Jack Brabham Automotive Centre of Excellence (Training Centre) at Eight Mile Plains, will focus on all aspects of innovation linked to the automotive and mobility industries. The Premier of Queensland, Hon Annastacia Palaszczuk has been invited to open Carmageddon4.

Experts from academia, industry and the professions will deliver keynotes and participate in panels. The schedule will include new technology and its impact on the future of mobility; waste management and recycling innovation and its potential for industry and government; and sustainability and clean energy that will drive the future of mobility. The event will feature an amazing exposition of hydrogen and electric vehicles including the latest from leading manufacturers and last mile mobility solutions.

Challenges and Opportunities

I met with Planet Ark Power to explore their environmental energy program for business and possible energy savings. Of interest was the installation of solar panels on non-residential rooftops that enables businesses to generate clean solar power and implement energy efficiency and storage technologies with minimum financial outlay. Llewellyn Motors, Ipswich, has some 1,232 panels on their roof that supplies half of its energy demand. The initial meeting with Planet Ark Power was promising and the MTA Queensland board has approved investigation into the technology and its benefits to members.

A meeting of interest was the Premier’s Business Series – EV Forum. Chaired by the Minister for Transport Mark Bailey and Director General Neil Scales, they overviewed progress towards the transition of the Queensland fleet to low and zero emission vehicles. A focus was on the identification of trends and opportunities for ongoing strategy development to enhance the uptake of these vehicles in the future. An interesting insight was Yurika’s General Manager, Infrastructure and Utility Services, Peter Schofield references to the Queensland Electric Super Highway (QESH), which is the world’s longest electric vehicle highway in a single state. Costs for EV motorists utilising the QESH are one of the lowest in the nation. Based on the most recent customer usage data, about 80 per cent of users are expected to pay around $5.00 each time they charge their electric vehicle, with an average cost of $3.00. At these expected costs, EVs are highly favourable compared to other non-EV transport options.

And the last thing

Some interesting facts from MTA Institute Director Professor Michael Milford, in his role as Deputy Director of Queensland University of Technology’s Centre for Robotics, who led the research team which took an electric car fitted with high-tech sensors on a 1,200km road trip over three months last year. The primary goal of the study was to consider how current advances in robotic vision and machine learning could enable the research car to see and make sense of everyday road signage and markings that humans take for granted. The research findings highlighted the limitations camera-vision systems have in correctly identifying and interpreting signs, traffic lights and lines on the roads. The camera vision systems only detected about 40 per cent of signs such as speed, give way, no right turn, pedestrian crossing and speed hump, with that accuracy rate even lower on rural roads and motorways.

Until next month, as Henry Ford, the industrialist and the founder of the Ford motor company said, ‘execute ideas with enthusiasm . . . as it is the bottom of all progress’.