How a long-time Adelaide family business is driving sustainability in the automotive space
One SMG is more than just a name in the vehicle industry. With a deep-rooted commitment to innovation, community engagement, and environmental and social stewardship, this family business is carving out a legacy to be proud of.
Family businesses have always been about the long game, and now, sustainability is a big part of that vision. Showing real, tangible efforts in this area can position these businesses as market leaders, increase customer loyalty, and gain better access to funding.
KPMG’s Global Family Business Survey 2023 spotlighted eight hallmarks of a sustainably-driven family business including a strong entrepreneurial mindset, embracing digitalisation and proper succession planning. The report also noted three important goals of family business leaders:
- Adopting sustainable practices in their business
- The long-term sustainability of their business
- Supporting people and the planet outside their business
One SMG is a shining example of a family business that’s built sustainability and longevity into its model, with environmental, social and governance (ESG) principles at the core.
Established just over 100 years ago as Smith Motor Company in Adelaide, the business was bought by Hans Ehmann in 1987.
Since then, the company has expanded across regional Australia. Recently rebranded to One SMG, it currently owns 18 businesses comprising car and caravan dealerships, service centres, collision repair, leasing and fleet management.
A new era of community engagement
What sets One SMG apart from other large automotive companies is its focus on the people and communities of regional Australia, according to James Ehmann, who joined his father’s business 23 years ago and currently heads up the fleet division.
“Supporting those regional communities in which our teams live and operate is a really important part of what we do,” he tells Kochie’s Business Builders. “But we also encourage all our businesses to contribute to their communities through grassroots activities such supporting local sporting teams, charities and festivals.”
One SMG also supports local and Indigenous employment initiatives, apprenticeships and traineeships. In the past year, the company has hired 11 apprentices, bringing the total to 32, and currently employs two staff members through a disability engagement program.
A major ESG initiative is the Business Development Group (BDG), a peer network of leaders from all 18 businesses whose aim is to support each other and establish best practices across the group. “It’s part of why we changed the name of the company to One SMG this year, to bring all our people and businesses together,” says James.
Setting up the BDG is one of many areas that KPMG Australia’s Family Business & Private Clients team has helped One SMG with over the past eight years. “KPMG has provided us with space at their offices to hold conferences along with expert speakers and facilitators,” says James.
“It’s enabled us to communicate with all our dealers and equity partners regularly about what’s happening in the industry and what we need to be aware of from an ESG perspective.”
Embedding sustainable practices in the business
The automotive industry isn’t known for being planet-friendly but One SMG is determined to lead the way in changing that.
Its Native Pathways Project plants trees to offset both One SMG’s carbon, as well as that of its clients. Since 2019 it has offset close to 600 tonnes of carbon.
“There were much easier and cheaper options to do that overseas but it was very important to me that those trees are planted right here in Australia,” says James.
And its green initiatives don’t stop there. From reducing paper wastage to harnessing solar energy and using eco-friendly paints, One SMG is taking its sustainability journey seriously.
Implementing these initiatives has its business benefits. It encourages staff retention by giving them a sense of purpose, and opens up more opportunities for the company.
“We bid for a lot of tenders on the fleet side that have been calling for carbon offsetting programs for some time,” says James. “It also means we’re able to attract like-minded partners.”
Keeping the legacy going
One SMG is strong in several of the key indicators identified in KPMG’s report, standing it in good stead to continue on for another 100 years.
Gemma Harris, Director, Business & Tax Advisory at KPMG Australia, who’s worked closely with One SMG, highlights the company’s entrepreneurial spirit. “It’s been built with a strong entrepreneurial mindset from its initial acquisition,” she says.
This mindset underpins many of the other factors necessary for longevity in a family business.
“Embracing digitalisation has been important for One SMG,” says Gemma. “It’s currently exploring options to enhance automation and make the most of its available data to achieve the business’s financial goals.”
Succession planning is another area that One SMG takes seriously (no Logan Roy power plays here!).
“Active involvement of non-family members has been a vital aspect of the company’s success, including the role of Chief Operating Officer and Chief Financial Officer,” says Gemma.
According to James, One SMG’s plans for the future are to diversify but still within the automotive space. “There’s a lot of opportunity for us once we get more of those efficiencies in our business models,” he says.
Discover more insights from KPMG’s Global Family Survey report and find out more about how KPMG can help your family business.
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This article is brought to you by Kochie’s Business Builders in association with KPMG Australia.
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