19 awesome Interview With A CEO Mazda Australia Managing Director Martin Benders

welcome To Interview With A CEO A Chance To Delve Beneath The Title And Find Out What Makes The Movers And Shakers Of The Car Industry Tick Today We're At Mazda Australia HQ To Meet With The Man Responsible For The Brand Managing Director Martin Benders How You Doing Martin Thanks For Joining Us Today Right Mike Thanks For Having Me Would You Call Yourself A Car Guy. I Remember As A Little Kid Riding Around In The Back Seat Of My Parents Car And Being Able To Identify Every Model And Every Variant Of Cars That.

I Saw In That On The Road. So, That Maybe That Makes Me A Car Guy. I Certainly Have An Interest In Cars My First New Car That Ever Bought The Only UK / Bought Was A Master, But I'm Not A Petrol Head To The Extent That You Know I'm A Slavish Follower Of Motorsport What Was The Mazda That You Owned A Capella Capella Wow And Do You Think It's Important That Car Company Bosses Like Yourself Do Have That Passion For The Automotive Industry Yeah.

I Think It Does Give You An Insight You Know From Time To Time And We Have Added Interactions With Other Brands And You Just Talk To People Who Just Look At It As A As A Product That You Know As, If It Was A Tube Of Toothpaste Or Something And You Think These Guys Really Don't Approach It From The Same Way And Cars Are An Emotional Sort Of Thing In People's Lives Maybe Because The Amount Of Money They Have To Invest In Them. So, Yeah. I Think It Helps, If You've Got A Bit Of Passion For The For The Product And What's Your Background Martin Have You Always Been In The Car Business No.

I Actually Started As A Finance Guy And We've Had Three Managing Directors In Mezzo Trailer All Finance Guys Been About 10 Years Before Mazda Working In Various Industries Like Food And Packaging And Stuff Like That. I Did Get Offered A Job With The Ford Graduate Program When. I Left Unique, But.

I'd Already Taken Another Roles Took Me About 20 Years Before. I Finally Ended Up Back In Forward By Default Through Them As The Connection And. So, How Long Have You Actually Been Working For Mazda For Now A Long Time 30 Years This Year Wow That's Quite An Anniversary Hmm Have You Always Been Based In Australia With Master Or Have You Spent Time In Other Regions Well I Started With Mazda In Brisbane Was They Were The Distributor Up There, But Within 12 Months Australia Was Formed Was The Distributor Said It's Too Hard Because The Currency Got Very Volatile.

So, We Eventually Moved Head Office Down To Melbourne And. I Sort Of Followed A Couple Of Years Later Then In 2007. I've Got The Opportunity To Become The Head Of The Global Marketing Division In Japan Which Was A Big Honor Spent Three Years There And Then Three Years Vp Of Sales For Mazarin Europe Before Coming Back Here And Whereabouts When You're Based In Europe Doing That In Cologne And Cologne Is Head Office In Is In Germany They Have A Big Operation In Brussels In Antwerp As Well In Belgium, But All Their Administration.

So, It's Like A Central Office Running All The Different Countries In Europe. So, Having Seen A Perspective From Japan And Europe And Australia What Is It That Actually Makes The Australian Market Unique. I've Had A Time To Think About It Was People Often Say You Know What's What's An Australian Car Consumer Like And And.

I The Way. I've Personified It Is Australian Car Buyers Like European Design And European Quality, But They Prefer American Powertrains Because Of The Distances They Have To Drive Sometimes That Sort Of Personifies The Australian Consumer I Guess One Of The Differences Here Is That The Japanese Have Done Quite Well The Japanese Brands Because The Cars They Make Haven't Had To Compete Head-on With The Locals. So, In Europe They Would Have To Compete With The Volkswagens And The French Brands And.

So, Forth Directly In The US The Big Brands Make Those Size Cars As Well. So, You Have To Compete With The Local Manufacturers. So, They're A Different Environment It's A Bit Harder To Get A Foot Hole, But.

I Think They've Had A Long Consistent Place In The Australian Market And. So, Reflects The Japanese Brands Being A Bit More Prominent Here Than Maybe The Other Markets And Of All The Japanese Brands That Are Prominent Mazdas You Know Behind Only Toyota Is The Most Prominent And It's The Most Popular Brand That Doesn't Actually Make Cars Here At All You Therefore Must Face Some Particularly Unique Challenges Within Mazda. I Would Imagine.

I Mean This Is One Of The Biggest Regions Anywhere In The Globe Well We've Had A Few Unique Advantages With Master Here. I Mean The Mazda Product. I Think Follows A European Sort Of Styling Ethic, If You Like And A Technology Ethic Which I Think Is Given Them A Uniqueness Amongst The Japanese Brands.

So, That's Been Good From Our Perspective From A Local Operational Perspective As. I Said Earlier There's Only Been Three Managing Directors They've All Been Australian They've All Developed Internally We've Sort Of Run The Company From Our Own Perspective And. I Think With The Distractions Of The Bubble Economy In The 90s And The Forward Involvement With Mazda We Were Able To Fly Under The Radar For A While To Establish The Business Here And Once We Establish That Success Success Does Breed A Bility To Give You A Seat At The Table In Japan And Some Confidence And Trust From Them And That's The Status Were At The Moment Yeah Well That's Not Something That Every Car Makers Australian Arm Enjoys You Said Before That There's Only Been Three MDS And They've All Been Australian And That's Not Something That's Often The Case A Lot Of Our Confidence To Bring Their MDS Or CEOs From Overseas It's Almost Like A Training Ground, But What Benefits Does Being An Australian With An Intimate Knowledge Of The Market Give You It Gives You A Way To Talk To The Dealers And Build Trust With The Dealers.

I Mean One Of The Things That We Pride Ourselves On Is That We Have A Strong Partnership With Our Dealer Network And Because Of Our Success In Doing That We've Also Got A Strong Partnership With The Major In Japan, If You've Got That Trust Through The Pipeline It Gives You The Ability To Do Things Consistently Over Time And One Of The Things That We've Done With Our Dealers Is We Grew Our Volume In Our Share In This Market Without Adding Or Over The Authorizing. So, The Dealers Have Sort Of Benefited As Well And. So, They're A Strong Network There Are Stable Network We Have That Trust Between One Another.

So, Is The Flip Side Of Your Success Perhaps That You Have Maybe An Extra Amount Of Pressure On You From Japanese Headquarters Compared To Some Of Your Contemporaries In Other Markets Maybe Oh. I Don't Know Whether We Have More Pressure Than Their Contemporaries Because They They Have A Lot More Work To Do We We Do Stand Out Amongst The Mazda Markets The Major Mauser Markets Is One Of The More Successful Ones The Pressure That It Puts On Us Is One They Want Us To Keep Growing And Keep Forming Because We Do Set A Benchmark In The Mazda World And We Do Get Held Up Quite Often As A Best Practice Market For Master. So, We Do Get A Lot Of Visits.

I Think There's A Few People Are Floating Around Here At The Moment From South Africa And Thailand Doing A Bit Of Work With Us. I Think We're Getting Canadians And The Russians Coming Over Shortly We've Had The Vikings And The Germans Here. So, We Have A Lot Of People Coming Here To Sort Of Understand What We Do.

I Guess The The Trick Is That You Know We're Not An Overnight Success We Didn't Sort Of Wake Up One Morning And Say This Is How We're Going To Be We've Evolved Things And We've Improved Things Over Time And When You Sort Of Explain That As A Business Model It's Very Easy To Write Down. So, They Start Implementing Those Things And Then The Next Six Months Later That's They Will It's Not Working It It Takes A Long Time To Build Up That Trust That That Continued You Know That Consistency That Continuation To Actually Grow The Business It's Not A Something That You Can Do Overnight You've Got To Have A Bit Of Patience Patience Hmm. I Mean We're Blessed With It With A Product Cycle That's Been Very Very Strong And The Current One The Current Cycle.

I Think Would Be The Best Ever. So, That Does Help, But I Think It's It Helps More With Us Because We've Got The Business Basics Right Well One Of The Biggest Decisions To Come Out At Least Publicly From Mazda Australia Recently Is The Massive Price Cut On The Mx-5 It's Going To Be Fifty Percent Cheaper At Base Level Than The Outgoing Car That's Almost The Same Price As The Original Was In 1989 Do You Think It Can Make As Big An Impact On The Market As The Unaided Which We've Got Right Behind Us Now. I Remember Taking You On A Drive Where You Actually Got The Drive In A And B And C In Back To Back.

I Was A Highlight There Was A Highlight And You Sort Of Sort Of Said. I Get It Now You Know What This Culture Of Mx-5 Is All About And As Mx-5 Is Aged You Know Since The Up To The NC Model It Got More Sophisticated And More Advanced, But It Sort Of Lost A Little Bit Of Its Origin You Know That Lightweight Pure Fun Sports Car And It Got A Bit More Expensive So. I Think What Mazda Corporation Wanted To Do Was Bring It Back To Its Roots, If You Like If.

I Go Back To The Original Na We Had A Camel Hump Demographic Profile We Had A Lot Of Young People Driving It And Then A Lot Of People Were Living Their Youth In Post You Know Posted Children, If You Like Pre Pre Retirement Or Even In Retirement As The Model A Just Got More Comfortable. So, That Kept The Older People In, But The Younger People Sort Of Didn't Go With The Price So. I Guess What We Can Do Now Is With The New Model We Now Have Two Engine Options We Have A Cheaper Entrant Entry Variant.

So, We're Looking To Sort Of Reawaken The Excitement Of Open-top Motoring And Real Interaction With A Car To That Younger Generation Was It The Success Of The Toyota 86 And Its Sub 30k Price That Really Made You Guys Sit Up And Say Hey We Probably Do Need To Cut That Price Back Yes And No. I Mean They Certainly Did Reset That Bar, If You Like, But. I Don't Know, If You You Often Do Read You Know Industrial Industry Comments And Especially Out Of The U.s.

you Know Young People Don't Are Not Interested In Cars Anymore And You Know They Don't Want To Buy Cars. I Think 86 Proof That Was Rubbish You Know The Right Car Comes Out They'll Get Involved With It Mx-5 Does Have Something Unique You Know That Open-top Motoring That Feel Of You Know Speed And Excitement Is You're Low On The Ground And You've Got Nothing Around You Your Head. I Think That's Something That Is Not Common These Days And.

I Think It's A Good Time To Be Out There And Doing It Again. So, You Don't Subscribe To The Theory That Young People Aren't Interested In Cars Like No Not At All Not At All I Mean, If I Go Into Certain Environments Where There Are Those People Around They Want To Talk To You About Cars As Much As My Generation Does The Boss Of One Of Your Biggest Rivals From Toyota Recently Said He Thought His Customers Was Sick Of Having To Haggle With The Dealers He's Ordered The Salespeople To Have A Set Price And To Make It A Bit More. I Guess Simple And You Know Did Read That Yeah That's Free Is That Something You Guys Might Apply As Well Now Look You Know No Matter Which Way You Look At It A Lot Of People Have A Trade In.

So, There's Always A Bit Of Understanding About What That Car Is Worth Certainly There's More Information Available Online For The Customer To Work That Out. So, That's Where The Trust Factor Does Come In Because You Know. I Don't Think It's Going To Happen Anymore That A Customer Walks In Has Looked Up Online What Their Cars Worth And Then Suddenly The Dealer Undercuts That By Multiple Thousands Of Dollars.

I Don't Think The Opportunity Is There Any More. So, We Do Need To Be Aware Of What's Available What Information Is There, But People Still Realize That You Know There's A Whole Whole Of Life Costs As A Transaction Cost There's A Change Over Cost And Those Things And You Know It's Not Possible To Sort Of Make Them A One-size-fits-all Because Not Every Customers The Same Either The Way They're Buying The Car You Know This Finance Involved Nevada Delices. I Think It's A Bit Simplistic To Say That Our Research Showed That Customers Expect Some Sort Of Negotiation In The Process They're Not Afraid Of That What Worries Them Is, If They're Getting Stuffed Around Or They Lose That Trust Factor And Then That's Where It Falls Over As Of Recently You Are Appointed The Treasurer Of The Federal Chamber Of Automotive Industries Which Is The Australian Auto Industry's Peak Body What Does That Entail Ah Sounds A Bit More Up-market Them Than It Really Is Sound Very Prestigious Very Prestigious Exactly Now Look The The FCA I Has A Reasonable Size Budget You Know In The Numbers Of Millions Of Dollars Which Comes From Subscriptions From The Manufacturers, But Also From Selling Market Data And.

So, Forth And. So, They Have A Responsibility To The Board In Terms Of How They Spend That Money The Staffing And You Know What Sort Of Research Or Projects They Undertake There's A Budget There's A Monitoring Of Their Expenditure And Preparing The Following Year Budget. So, It's Really Getting Involved With That, But There Are Clerical People Involved At FCA Either Do Most Of The Number-crunching Is Just Really Looking Over The Figures Making Sure That Makes Sense And.

So, Forth Hmm. I've Heard Some Say That Perhaps With All The Battles That It Chooses To Fight The FSAI Is Maybe A Little Bit Too Aligned With The Three Local Car Makers Potentially At The Expense Of The Importer Brands Of Which You Guys Are The Biggest Is That Something That You Think Has Some Merit Do You Agree With That And, If. So, How Is The FCA.

I Trying To Change That Direction Look Certainly Historically That's Where They Started You Know That's Where The Life Started And There Were More Manufacturers Going Back Enough Years That Has Been Changing Gradually As The Local Manufacturers Sort Of Have Lost A Bit Of Share And There Is A Vibrant Importers Group With In The FCA. I That Operates In Parallel And Discusses The Issues That Affect The Whole Industry Certainly For The Next Couple Of Years Before The Fords And Holders Of This Will Depart From The Local Manufacturing There Are Still A Number Of Issues That Involve Government Interaction That They Will Need To Deal With The FCA I Has The Expertise For That, But Going Forward They Are Working On What Their Model Will Be Going Forward And There Are Plenty Of Issues Parallel Imports Co2 Regulations Safety There's Plenty Of Genuine Parts You Know How People Get Their Cars Repaired Under An Accident Or Even For Repair Issues. So, There Are Plenty Of Issues That We Need To Be Monitoring And Having A Single Voice On.

I Think Assistant Minister Jamie Briggs Has Been Quite Vocal About His He's In Favor Of Opening Up The Importation Of New Or Near New Cars And Allowing People To Do That Themselves Rather Than Through Organizations Like Yours What Are The Pitfalls And Risks As Far As You See Out Of That Well. I Can Understand You Know The Rationale Because There Is Some Consumer Evidence That People Are Buying More Things Online And Parallel Importing Their Own Things, But By And Large Those Things Tend To Be Low Value Low Impact Type Items Like Clothing Computers What Have You When It Comes To Cars We're Talking About A Bigger Value Item That Has More Risk In Involved Now We're A Right-hand-drive Market There's Only Two Right-hand Drive Markets That Would Have The Same Standard In Terms Of Safety And Emissions Etc Which Is The UK And Japan. So, Really They're The Only Two Markets You Could Import From Both Those Markets Have Significant Differences In Terms Of Their Not A Hot Climate Market.

So, Cars Will Have Some Differences In Relation To That They Have Different Radio Frequency Operating Things For Navy For Radios For What Have You Also Require Adjustment. So, Those Things Are Not Going To Be Able To Be Fixed By Individuals Now The Other Thing That Happens Is We Operate On The VA CL The Australian Consumer Legislation Which Puts A Big Onus On On Us To Look After Customers Well Into The Future And, If You Bring In Your Car As A Self Importer, If You Like A Private Importer You Lose A Lot Of That Protection Because We Can't Necessarily Fix The Car Or, If It's Not A Car We Import Or, If It Has Features That We We Can't Protect The Word Of It Was Not Even A Model We Import. So, There Are A Fair Number Of Consumer Risks And.

I Guess The Crux The Crucial One Is Safety You Know Safety Recalls Is One Floating Around At The Moment We Only Know The Cars That We Import, If Somebody Brings In Their Own Car We Don't Know It's Here. So, We Won't Be Talking To That Customer Unless Somehow It Comes To Our Notice. So, There's A Risk That That Car Sort Of Travels On With A Safety Defect That Won't Get Fix.

So, You Know There Are Big Issues And It's Not Like Bringing In Something That Doesn't Get On The Road And Doesn't Have People Riding Around In It Parallel Imports Also Have The Potential To Take Sales From The Local Car Makers Or Car Distributors Like You. So, Isn't There A Bit Of A Vested Interest In Car Company Managing Directors Opposing The Opening Of This Legislation Look They've Always Been Enthusiasts Importing Their Own Cars You Know There Will Be Some Models You Know Exotic Sports Cars Even You Know Last Of Run RX Evans And Our Excites You Know That Still Came Out In Japan After We Stopped In Boarding Where People Say Yeah I Want One Of Those Ability To Do That Still Exists This Is Really About The Government Extending It And Sort Of Encouraging People To Go And Buy Their Own Cars. So, Once Once You Sort Out Being Able To Import A Car Making Sure That You're Actually Saving Money And You Know There's Always This Idea That.

I Look. I'll Save 10 Grand Or 20 Grand Or Whatever It Is, But They Forget To Look At The Tail End When They've Got This Imported Car And There's Nobody Wants To Buy It In Australia Suddenly They Lose 10 Ground At The Other End Or Even More. So, Whole Of Life Is An Issue As Another Risk Issues.

So, We Know People Want To Buy Particular Cars It May Be Annoying To Us, If If A Car Gets Launched In Japan Before It Gets Launched Here And Suddenly One Of Those Arrives Here, But In Reality No I Don't Think. So, We Really Look At It From The Consumer Perspective The Risk Goes To Them We Take The Risk Now With All The Cars We Import It's Very Hard For Us To Take The Risk On Any Cars They Bring In Themselves Because We Don't Know What It Is We Don't Know Where They Got It From We Don't Know We May Not Even Be Able To Service It, If You Take A Euro Stage 6 Car It Has A Lot More Onboard Diagnostics And Computer Interaction Than Euro States Four Or Five That's In Australia. So, Even, If We Plug Their System In It Wouldn't Speak To The Euro State Six Cars.

So, You Know They're All Things That Are Just Going To Make The Owner Experience Suboptimal And While We Don't Have To Support Those Cars Under A Tree Will See Regulation Or Comments People Are Still Going To See Them As The Badge On It. So, We Don't Like It From That Perspective Only Okay Crystal Ball Time Now Where Do You Think The Industry Is Going To Be In 10 Or 20 Years Time What Are Some Of The The Hallmarks That We'll See Then That We Don't See Now Hey. I Wish.

I Had A Perfect Crystal Ball Mike Look There's A Lot Of Hype Around The Moment Hype About Connected Cars Hype About Autonomous Driving Cars Electric Cars Those Sort Of Things, But. I Read A Report Just Today Actually By Goldman Sachs Which Looked At Mega Trends In The Auto Industry And I Think They're A Bit More, Button Down And A Bit More Calm About Work What's Going On. So, Certainly Powertrain Development You Know The The Move Into Electrics Whether They Be Hybrids Or Plug-in Hybrids Or Pure Electric Their Comment Was That Most Of That Is Driven By Legislation Like The Zero Emission Tailpipe Emissions In California Or The Hundred Ninety Eight Grams That's Coming Into Europe.

So, They Driven By Regulation, But Not By Customer Demand. So, Their Forecast Was That At Least For The Next Ten Years At Least Seventy-five Percent Of The Industry Would Still Be Driven By Petrol And Gasoline Engines In Some Form Or Another And That's Where As There Is Fighting You Know Making Those Engines Super Efficient The Connected Car The Autonomous Car They Sort Of Speculated That Most Of The Benefit Of That Sort Of Technology Is Going To Be In Things Like Trains Certain Buses And You Know Controlled Environments Rather Than Out In The General Public No Recognition That The Way People Drive Cars And Owned Cars Is Being Fixed By Those Autonomous Driving Models Is Being Changed Or Challenged One Thing That They Did Comment On Was That While Power Trains Are Getting More Efficient The Weight Of Cars Hasn't Really Come Down An Awful Lot. So, Lightweight Technology And That's Another Area That Mars Is Very Interested In.

So, Some Sort Of Technology To Reduce The Weight Of Cars To Contribute To Fuel Efficiency Will Come In And. I Think Connected Cars In The Sense Of Where We Could Conceivably Monitor The Car And The Way It's Used And Service According To That Rather Than You Know You Come In Every Six Months Where You Come In Whatever. I Mean At The Moment We've Done That On A Kilometer Basis Now We Sort Of Say You Know Come In When You Do 10,000 Kilometres Don't Come In On Six Months.

So, You Know Getting It More In Line With The Way People Drive Their Car So. I Think We Can Do That More Technology You Know With Technology. So, There There Are There Are Ways To Still To Improve The Experience The Way The Cars Can Interact With People, But The Fundamental Freedom And Flexibility Of Owning Your Own Car Getting Into It When You Want To Getting From A To B Where You Want When You Want To Enjoying The Experience Still Not Been Replaced By Anything That's Happened And Where Something Like Tesla Happens Where They Have An Engaging Or Enticing Electric Vehicle Package The Existing Manufacturers Can Move Into They're Quite Quickly What About In 20-25 Movie Scene Master As Australia's Top Selling Car Brand Look.

I Don't Think. So, Yeah. I Think The Number One Brand At The Moment.

I Out They Have Many Many More Models Than We Do They Sell To A Lot More Bio Segments Than We're Interested In Dealing With. So, They Will Always Have That Ability To Sell More Than Us, But We're Quite Happy Where We Are At The Moment We Were A Solid Number Two For The First Five Months Of The Year We're Near The Top In Private Buyers Which Are The People That We Still Focus On We Do Have An Interest In Talking To Buyers That Have A Choice Of Their Car, But May Buy It Through Their Companies In Some Way Or Other. So, We're Looking At That As An Extension Of Our Target Buyer, If You Like.

So, Yeah Now. I Think We'll Sort Of Sit Where We Are And It'll Be A Matter Of Whether We Can Find A Couple More Niches With Product You Actually Care About Rankings And Pecking Orders Does It Matter, If Your Second Or Third Or Fourth Or Wherever It Stands Look Being Second In The Marketplace Does Give You Some Advantages And Some Abilities, But No We Want To Stay True To Who Our Buyers Are We Want To Straight True To What Our What Our Product Is And And. I Think That's One Of The Advantages That Masters Had In The Last 15 Years We Have Developed Our Products Along A Consistent Trajectory You Know Where Style Is Important Where The Way The Car Drives Is Important And Where The Experience That A Customer Has With The Product Is Important And You Know A Lot Of Car Brands Sort Of Try And Jump Around What's Hot We've Sort Of Stayed On A Fairly Consistent Path Which.

I Think Helps Build A Trust With The Consumer As Well They Understand Who You Are And. I'd Be Remiss Not To Ask This One For All Our Enthusiasts Out There When Are We Going To See Another Mazda Rotary Hmm Look The Rotary Is Exceptionally Important To Mazda I Think It Drives A Lot Of The Way That Master Thinks You Know The Fact That We Signed On To Rotary As Early As The 1960s And Basically Were The Only Company To Commercialize It It Really Does Drive A Lot Of The Way That As The Things. I Think Mx-5 Would Never Have Happened Unless Mazda Have That Sort Of Thinking Process.

I Think In 2020 Its Masters 100th Anniversary Of Making Cars And. I Think There's A Significant Anniversary On The Risin For The Rotary As Well So. I'd Like To Think That Mazdas Working On Something In That Respect Maybe A Skunk Works At The Background Somewhere It Sounds Intriguing And Go Well In Australia No Doubt It Would.

I Will Thank You. So, Much For Joining Us Today My Ex Progress Yet It Was Enjoyable Thank You Very Much. So, There You Have It An Insight Into One Of The Movers And Shakers Of The Australian Car Industry Let Us Know What You Thought What You Liked What You Didn't And What You'd Like To See From The Next Edition And Don't Forget To Subscribe To Our YouTube Follow Us On Facebook Or On Twitter.

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