Horst von Sanden: opening communication lines

News Feature

Nothing talks to the change in the Australian automotive industry since the end of local manufacturing as the new boss of the Federal Chamber of Automotive Industries (FCAI).

His name is Horst von Sanden and in his day job he is the head of Mercedes-Benz Australia.

So, after decades of working-class local brands dominating the running of the motor industry’s peak body in Canberra, its leadership has now passed to an importer… And one of the most elite brands in the business.

It’s a seismic shift that reflects the future direction of the FCAI, which for far too long was a hobby horse for local makers looking for government assistance for their factories. It didn’t help that the FCAI president was often a fly-in from Detroit, sometimes just days into an unfamiliar job in a foreign country and culture, who got the job on the simple Ford-Holden-Toyota rotation system.

Local car-making was good for Australia, employing thousands of people through the generations and helping to forge a national identity with full-sized family cars from Ford and Holden… But, now, the challenges for the 21st century are far tougher.

“There is so much happening in the car industry these days. There are so many topics that need to be discussed, and to prepare the ground for the things that are going to happen in the future,” says von Sanden, in his first interview as president of the FCAI.

“I don’t think we've had as many changes in our industry since the car was invented.”

The FCAI change is a big one for von Sanden, although he has faced many changes and challenges since he landed in Australia as a raw and slightly-gawky marketing manager in September 2000.

He rose quickly to become CEO for the three-pointed star in 2014, along the way giving up his ex-patriate status and benefits with Daimler to become a genuine Australian.

“I made the decision when I had my second contract. I was five or six years here. My whole family, my three kids and wife, all the same, we became Aussies,” he says.

The FCAI has been a toothless tiger for far too long, with local jobs as the main bargaining chip with the politicians and bureaucrats in Canberra, but von Sanden sees the potential for a new type of relationship.

“I think there is a need for a solid collaboration. I think the FCAI has a greater role in the future because of the changes that are coming. They cannot be addressed by a single manufacturer.

“The government’s role is to secure the quality of life and progress in the country. And we are a big part of that.

“Cars remain an integral component of the Australian identity. From memories of your first car, to cheering on local hero Daniel Riccardo in the Formula One championship, our vehicles are central to our everyday life.

“In the past, all you needed was roads, cars, fuel to run them and a few rules around operating them. Life is no longer as simple as it used to be,” von Sanden opined.

He can see a number of urgent areas for discussion and development, from the quality of fuel to the infrastructure needed for electric and autonomous cars.

“It’s an exciting time. I’m an optimist. A lot of things being developed by the automotive industry are massively interesting to people, the general public.

“Nobody talks about the innovation… They still think we make too much money. It’s taken for granted and they focus on the negative. I think infrastructure in all its magnitude, in all its areas, is the biggest issue. It’s everything. From the very present stuff -- which needs to be constantly addressed -- to the far distant future.

“For me, infrastructure starts at the quality of fuel,” he stated.

von Sanden is a deep thinker and has some surprising views on the car world. He is also joined on the FCAI board by his communications sidekick of 12 years, David McCarthy, a firebrand who is well known for his views on the Luxury Car Tax, genuine parts and safety.

“They are exciting times, but scary as well. There are obviously a few frightening components in it,” von Sanden told carsales.com.au.

“We must not forget that less people will own cars in the future. The priorities of people change. In past, someone bought a car and then went to find a telephone, now they find a car that fits to their phone.

“Then there are the disruptive forces in car retailing. Who know where this goes. The first automatic car vending machine is installed in China and it is selling cars without any contact.”

Despite the focus on the future, or perhaps because of it, von Sanden sees a bigger need for the FCAI to communicate the benefits of the car industry in Canberra.

“The economic activity is $17.5 billion. It’s a massive part of the economy and life,” he says.

“On the political side the huge employment of manufacturing has gone but the importers still employ a huge number of people. There are 70,000 people directly and another 250,000 to 300,000 indirectly in the automotive sector.

“I’m expecting to get more approaches and questions from government about the developments in the car industry. The complexity of the industry and what is coming will continue to increase. I think the government has a need to know.”

von Sanden has turned Mercedes-Benz from an elitist brand with limited appeal to a truly mass-market target, starting with an A-Class that competes with the Volkswagen Golf and even the new X-Class ute that was largely driven from Australia.

But he is relishing the challenge of the FACI role and looking to kick goals before he moves on.

“I have two hats. I’m not just Mercedes-Benz, I’m an industry representative… Success for me, I think, will be if I’m respected by everyone as an independent voice. I don’t try and gain any benefit for Benz.

“The biggest success will be if we are respected as an industry body, by politicians and regulatory organisations. If people are happy to talk to us, ask us, and respect us… That’s success.

“To ensure we [Australia] are not being left behind and that we can, in a timely way, introduce the new technology to the benefit of the consumers. That’s the key point,” von Sanden said.

Taking on the FCAI leadership was a big decision for von Sanden, but he says he is up for the challenge.

“I’ve been around for a long time, but it is extremely exciting. And because it’s so new there is no risk to get bored.

“I’m an older bloke but I’m curious to see what’s around the corner. And that’s exciting.

“If you wake up in the morning and think ‘I’m not interested in that shit’ then it’s time to do something else,” the new FCAI boss said.