| It’s been tipped to save motorists up to $40 bucks at the bowser, but how will the hype translate into dollars on the workshop floor?
Could this be the biggest windfall the trade has seen for a decade?
Or, is LPG not all it’s cracked up to be?
Federal Government action to reduce the impact of rising fuel costs may have served to provide the automotive service sector with the best opportunity for growth since the 90s.
Rebates of $2,000 for dual fuel conversions and $1,000 towards a new LPG vehicle have guys on the shop floor working overtime and there’s no hint of things slowing down.
With a five-month waiting list for conversions on the cards already and an eight-year offer from the government on the table, workshops are carefully weighing up their options.
Some are going full steam ahead, getting their guys accredited and hooking into the spoils, while others are doing an about face, and some, many licensed LPG installers, are opting out of the deal altogether.
Sydney-based workshop Archers Motor Repairs was recently paid a visit by Prime Minister John Howard when he came to get a lesson in LPG.
Archers' owner Craig Duncombe has been doing conversions for the past 22 years and said the government decision now had his mechanics working double time.
“Before the announcement we had about eight orders in the pipeline but now we currently have 70,” he said.
“I’ve got two guys accredited at the moment and I’ve got another in the process of being licensed.”
Mr Duncombe said conversions were an important part of his business but admitted the work was not laden with profits.
“It’s definitely worth doing but you’re not going to get rich off it,” he said.
“It’s time consuming, we only apply our hourly rate and it takes roughly about 10 hours to do.
“But it does provide a constant work stream for us and we also get a bit of spin-off work in terms of servicing.”
LPG Australia general manager Ray North said the government windfall was not only tipped to save the average motorist $30 to $40 a week at the bowser but the national decision had the potential to have enormous impact on the trade.
“We estimate there could be something like 4,200 licensed people at this point but the government has estimated that there will be about 240,000 LPG cars over the next four years,” he said.
“We could at least double the number of licensed convertors to cope with that kind of demand.
“ | The extra business is going to be there and we’ve noted a rise in the number of people joining our association to get involved in the LPG business.
“I’ve noticed that businesses that normally only did mechanical repairs are looking to add the conversion ability.”
Mr North said the Autogas Taskforce of LPG Australia had recently been set up in conjunction with the Federal Government to increase the number of convertors while ensuring those conversions met national standards.
“We want to make sure there is an increase in the number of people who can do conversions and that those conversions are of a high standard,” he said.
Methods for accreditation varied from state to state and needed to be streamlined to provide consistency and better supervision of the industry, he said.
“The Autogas Taskforce of LPG Australia will attempt to adopt the Victorian model of registration nationally,” he said.
“In Victoria for example, anyone who is registered must be certified through the AAFRB – they issue the compliance plates.
“That way you’ve got a centralised issuing of compliance plates and we are encouraging all other states to look at that model.”
A code of conduct was also being developed by the taskforce to ensure good standards were maintained, he said.
Mechanic and owner of Melbourne’s Inkerman Service Centre Steve Mauro stressed the immediate need for a code of conduct and warned those in the trade against making short-term decisions.
And rather than jumping on the bandwagon, the registered convertor has decided to jump off.
Mr Mauro had been doing conversions since 1996 but cut throat competition and corner cutting in the market prompted him to recently deregister as an LPG installer altogether.
“I was quoting $2,500 for a state-of-the-art conversion but there are people doing it for $1,400-$1500,” he said.
“For that price you’re either not making any money or a shoddy job’s been done.
“I just don’t need the hassle.”
He warned that without a code of conduct in place the government initiative could become a recipe for disaster.
“I don’t think the Government has looked thoroughly into what they’ve got themselves into,” Mr Mauro said.
“Any backyarder can go in and buy gas parts and not have to show any registration as a licensed fitter.
“We’re in a position where you can go to the wreckers and get a gas tank and install it in your backyard.
“Now that’s really playing with fire.”
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