The voice of the auto industry Issue 12 14 July 2011 Death of the car-yard? Imagine the perfect dealership. such as in New Lynn, suggest that shifting away from road fronts. “If you look at dealers who are Cars under lock and key, a roof so dealers have either gone bust or But he says, franchise dealers operating on Great North Rd, and that customers can browse the headed for cheaper locations – a aren’t likely to shift, nor the more down on Greenlane, you’ll see that selection whatever the weather, trend confirmed by commercial real established used import dealers, at they’ve been around for years, and most importantly, cheap rent. estate agents spoken to by Autofile. least in the short term. and they have a bit more of an You can also nip off for a round As internet-selling tools He believes that with the upmarket range of cars. But many of golf, since customers are all by revolutionise the motor trade, emission rule next year many yards in Manukau or Takanini, appointment. and particularly as used importers dealers selling cheaper cars will could struggle.” It’s called a warehouse, a space contemplate the 2012 trading be cleaned out, or will shift to Rents on car yards have fallen that increasing numbers of car environment, it’s a trend that’s warehouse-style selling. by 50 percent in Auckland over dealers are choosing to operate from. likely to continue. But will all “Where the model is going to the past two years, he says, and The downside is zero road-front dealers make the jump? fall down is that price point, $7,995 with few new entrants into the car exposure and no walk-ins, meaning Mike Greer, a senior broker with - $9,995, that’s where it’s going market, the tenant is king. that virtually all your customers Barfoot & Thompson, and formerly to hurt a lot of dealers. The car This is largely because while find you through the internet. in the motor vehicle industry for 25 yard is really a destination, it’s not car yards tend to be in excellent The number of empty car yard years, says that as dealers re-evaluate something where you get walk-on locations, they don’t have a lot of around Auckland, clustered in areas their business models, many are traffic anymore. alternative uses, and in the current continued on page 8 Soft finish to Fieldays Taranaki Light commercial registrations up 23.6% when compared with “The fact that we weren’t in June were 2287, the highest month the 4,499 units retailed during the running at normal inventory Regional for commercials since June 2008. same three months last year. levels across the fleet meant Despite this, it was something Mazda New Zealand’s Marketing that there wasn’t the level of Report of a soft finish for the end of the Manager Glenn Harris says the soft transactions you would have in Fieldays period, as supply constraints finish is a result of stock shortages. any other previous year.” no doubt made an impact. “Everyone knew that June was He says that the level of The June total was less than probably going to be the hardest specials on offer were also a 100 vehicles above June 2010 (3 hit in terms of supply availability reflection of supply constraints. percent growth), while the total for for those who are sourcing “Certainly the Fieldays March-April-May 2011, 5,561, was product out of Japan. promotional pricing and continued on page 26 p14-15

InternatIonal VehIcle logIstIcs solutIons Web: www.autohub.co.nz Contact: [email protected] Ship KIWI and Experience the Difference

Service from Japan to New Zealand VESSEL NAME VOYAGE OSAKA KOBE NAGOYA KAWASAKI YOKOHAMA AUCKLAND TAURANGA NAPIER WELLINGTON LYTTELTON

HOEGH CHENNAI 12 Sun 17 Jul Mon 18 Jul Tue 19 Jul Sun 31 Jul Wed 3 Aug Wed 3 Aug Tue 2 Aug Wed 3 Aug HEIGHT 3.5 M IMO WEIGHT 12.5 MT 8507652

TRIUMPH 3 Thu 28 Jul Thu 28 Jul Fri 29 Jul Sun 31 Jul Sat 13 Aug Tue 16 Aug Tue 16 Aug Mon 15 Aug Tue 16 Aug HEIGHT 3.5 M IMO WEIGHT 12.5 MT 8507652 TRISTAN 7 Thu 28 Jul Fri 29 Jul Sat 30 Jul Tue 23 Aug Fri 26 Aug Fri 26 Aug Thu 25 Aug Fri 26 Aug HEIGHT 6.2M IMO WEIGHT 200MT 8321333 HOEGH CHENNAI 13 Tue 16 Aug Mon 15 Aug Wed 17 Aug Thu 18 Aug Tue 30 Aug Fri 2 Sep Fri 2 Sep Thu 1 Sep Fri 2 Sep HEIGHT 3.5 M IMO WEIGHT 12.5 MT 8507652

CUT OFF DATES OSAKA KOBE NAGOYA KAWASAKI TRIUMPH 1 Thu 21 Jul Thu 21 Jul Fri 22 Jul Mon 25 Jul - Please kindly place your bookings at each loading port: Nittsu, Isewan, Shinkyo and Auto Terminal Japan. TRISTAN 7 Thu 21 Jul Thu 21 Jul Fri 22 Jul Mon 25 Jul - Cargo for vessels not calling Kawasaki, Kobe or Kisarazu will be transported to the nearest load port. H. CHENNAI 13 Tue 9 Aug Mon 8 Aug Wed 10 Aug Thu 11 Aug - All Tauranga and Napier units will be land transported from Auckland - Schedules, Ports and Vessels are subject to change without prior notice

SALES JAPAN OSAKA AREA KOBE AREA NAGOYA AREA TOKYO AREA AUCKLAND TAURANGA NAPIER WELLINGTON LYTTELTON Jordi, Naoki SHINKYO UNYU AUTOTERMINAL JAPAN ISEWAN KAIUN NITTSU KAWASAKI Jayne Keith Thompson Allan Germain Kevin Wilson Stacey Tel: 03-6436-5534 Tel: 0725-33-4361 Tel: 078-805-2550 Tel: 052-661-5180 Tel: 044-288-1342 Tel: 09-373-3375 Tel: 07-575 9684 Tel: 06-835 1913 Tel: 021-925-401 Tel 03-379-7682 Fax: 03-6436-3329 Fax: 0725-22-2397 Fax: 078-805-2750 Fax: 052-661-6811 Fax: 044-299-3237 Fax: 09-379-9477 Fax: 07-575 9222 Fax: 06-835 1250 Fax: 04-589-5223 Fax: 03-379-3480 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] shippingenterprises@ [email protected] [email protected] [email protected] [email protected] [email protected] scorp.co.nz

Kiwi Car Carriers Ltd Level 11, 2 Commerce Street, PO Box 106003, Auckland 1143, New Zealand. Phone +64 9 373 3375, Fax: + 64 9 379 9477, + 64 0800SHIPKIWI www.kiwicar.com editor’s note Tue Tue 16 Aug Fri 26 Aug Fri 2 Sep Wed Wed 3 Aug LYTTELTON [email protected] Fax: 03-379-3480 Tel 03-379-7682 Tel Stacey LYTTELTON Bad driving –

Editor Advertising Stian Overdahl Brian McCutcheon Mon 15 Aug Thu 25 Aug Thu 1 Sep Tue Tue 2 Aug WELLINGTON [email protected] Fax: 04-589-5223 Tel: 021-925-401 Tel: Kevin Wilson WELLINGTON can they put [email protected] [email protected] 021 247 7782 Free phone 0508 288 863 021 455 775 a tax on it? Contributor Sandy Myhre Designer Tue Tue 16 Aug Fri 26 Aug Fri 2 Sep Wed Wed 3 Aug NAPIER Adrian Payne [email protected] [email protected] Fax: 06-835 1250 Tel: 06-835 1913 Tel: Allan Germain NAPIER

Autofile is also available as an electronic copy via email. If you’d like to receive electronic copies please send an email Tue Tue 16 Aug Fri 26 Aug Fri 2 Sep Wed Wed 3 Aug TAURANGA with your name and organisation to [email protected]. Back copies are also available on request. shippingenterprises@ scorp.co.nz Fax: 07-575 9222 Tel: 07-575 9684 Tel: Keith Thompson TAURANGA Copyright: Published twice monthly by: 4Media, PO Box 6222, Dunedin 9059 All statements made, although based on information believed to be accurate

- Please kindly place your bookings at each loading port: Nittsu, Isewan, Shinkyo and Auto Terminal Japan. Terminal Auto - Please kindly place your bookings at each loading port: Nittsu, Isewan, Shinkyo and - Cargo for vessels not calling Kawasaki, Kobe or Kisarazu will be transported to the nearest load port. Auckland and Napier units will be land transported from Tauranga All - are subject to change without prior notice - Schedules, Ports and Vessels and reliable, cannot be guaranteed, and no liability can be accepted for any Sat 13 Aug Tue 23 Aug Tue 30 Aug Sun 31 Jul AUCKLAND errors or omissions. Reproduction of autofile in whole or part, without written permission, whether by xerography or any other means, is strictly forbidden. All rights reserved. If writing an editorial is all about [email protected] Fax: 09-379-9477

Tel: 09-373-3375 Tel: General observation of the Jayne AUCKLAND pithy thoughts, personal bugbears, behaviour of the average road and original observations, it feels user might lead a scientifically Next issue: July 28 Sun 31 Jul Sat 30 Jul YOKOHAMA like almost every time I step in a minded person to conclude that motor car I could churn out a small driving is perhaps the hardest manuscript. thing to do in the world. Questions like: Why is he But personal experiences – Japan Japan driving with no lights on when it’s hopping in a car, observing other Mon 25 Jul Mon 25 Jul Aug Thu 11 KAWASAKI KAWASAKI Thu 18 Aug KAWASAKI KAWASAKI Tue 19 Jul Tue dark? and Hasn’t she heard about road users, identifying hazards, Singaporinng e Singaporinng e [email protected] Fax: 044-299-3237 [email protected] Tel: 044-288-1342 Tel: NITTSU KAWASAKI TOKYO AREA TOKYO

www.kiwicar.com indicating? and Why is that person not randomly veering off the road, Kiwi Car CarriersKiwi Car Ltd stopped mid-intersection? abound, understanding the difference

and the behaviour of many drivers between red and green light – oftenNew Zealand New Zealand is eternally mystifying. leads me to believe that driving Specialists in The truth of the matter is that a motor vehicle competently, in Fri 22 Jul Fri 22 Jul Wed 10 Aug NAGOYA Fri 29 Jul Fri 29 Jul Wed 17 Aug NAGOYA Mon 18 Jul if New Zealanders are as bad at actuality, isn’t that hard. Pre Shipment Inspecti ons [email protected] Fax: 052-661-6811 Tel: 052-661-5180 Tel: ISEWAN KAIUN ISEWAN NAGOYA AREA NAGOYA everything else as we are at driving, Unfortunately I don’t have any then there’s absolutely no question answers. There might be some

Service from Japan to New Zealand New Service to Japan from that we’re a nation of no-hopers. sort of whizzbang technology If our driving is the standard that can nullify bad driving, or and Experience the Difference KOBE Thu 21 Jul Thu 21 Jul Mon 8 Aug Thu 28 Jul Mon 15 Aug KOBE by which we are judged, then it’s perhaps extensive driver training

with certainty I can say we’re all offers a solution.  Full Border Inspections headed to hell in a hand basket, But the behaviour one [email protected] Fax: 078-805-2750 Tel: 078-805-2550 Tel: AUTOTERMINAL JAPAN AUTOTERMINAL KOBE AREA and you can basically forget about experiences on an everyday  Biosecurity Inspections the Rugby World Cup if you’ve got basis seems so extreme, so  Structural Inspections designs on doing anything more OSAKA Thu 21 Jul Thu 21 Jul Tue 9 Aug creative on the part of the driver, Sun 17 Jul Thu 28 Jul Thu 28 Jul Tue 16 Aug OSAKA than hosting it. that one can only assume that  Odometer Verification Driving standards in this these people have some sort of  Pre Export Appraisal country are a bit like people with compulsion to control a motor no limbs being told to operate vehicle in such a fashion.  Vehicle History Reports 7 13 1 12 3 7 13 IMO 8507652 IMO 8507652 IMO 8321333 IMO 8507652 KIWI VOYAGE heavy machinery. In short the Bad drivers, one must conclude, [email protected] [email protected] Fax: 0725-22-2397 Tel: 0725-33-4361 Tel: SHINKYO UNYU OSAKA AREA OSAKA JEVIC is ISO/ IEC: 17020 Type A Accredited for the result is often absurd, other times are a sad but unavoidable part of inspecti on and certi fi cati on of used vehicles deplorable, and occasionally tragic. life. Perhaps the only antidote is The question at the heart ridicule and laughter. JEVIC NZ of it all which must be asked, is 09 966 1779 whether driving – even moderately Stian Overdahl www.jevic.co.nz competently – is really that hard. Editor TRISTAN H. CHENNAI VESSEL NAME VESSEL HOEGH CHENNAI 3.5 M HEIGHT 12.5 MT WEIGHT TRIUMPH 3.5 M HEIGHT 12.5 MT WEIGHT TRISTAN 6.2M HEIGHT 200MT WEIGHT HOEGH CHENNAI 3.5 M HEIGHT 12.5 MT WEIGHT CUT OFF DATES TRIUMPH [email protected] Fax: 03-6436-3329 Tel: 03-6436-5534 Tel: SALES JAPAN Jordi, Naoki Ship Level 11, 2 Commerce Street, PO Box 106003, Auckland 1143, New Zealand. Phone +64 9 373 3375, Fax: + 64 9 379 9477, + 64 0800SHIPKIWI 9477, + 64 9 379 Fax: 3375, +64 Zealand. Phone New 9 373 1143, Auckland 2 Commerce Street, 106003, Box PO 11, Level www.autofile.co.nz | 3 news

Letter to the Editor disputes ‘Tender’ not competitive and therefore was no tender disputes

Letters to the Editor should be emailed to [email protected]. Letters may be edited for brevity. Background purchaser’s details, and con The Case: On 29 November Miss Dewar taining vehicle back to the trader in early The purchaser wished to obtain a the following: solicitors rejected her request for a refund, while the trader ma purchased a 1998 Nissan Pulsar December 2010 and saw Mr intained The views written in the Letters to The Editor do not necessarily reflect the views of Autofile, nor “I/We hereby tender the amount refund for the vehicle. The trader’s The Consumer Guarantees Act the vehicle had been supplied by $3,500 from E&H Auctions Limited Stewart who told her the “stutter” competitive tender. The pro tender of $3,500 Plus $10 (change of solicitor, George Swanepoel of states in s43 “No contracting out visions or effect of any condition, trading as Whangarei Car Auctions. might be caused by moisture of the Act therefore apply ownership) for the above v Swan Law notified her that the except for business transactions”, to warranty, guarantee, right The purchaser applied to the ehicle. on the spark plugs from havin this transaction because the The Decision: subject also to section 41, which does Autofile take any responsibility for the views stated by those who write to the editor. Tribunal to reject the vehicle and I/We confirm that we are aware g tender document she had signed or remedy. The Tribunal The Tribunal’s view was that the the engine cleaned. He drie exemption in s 41(3)(b trader’s actions were prima facie a that this vehicle is being sold by d the contracted out of the Act and the states (3) Nothing in this Act shall ) of the Act considers that the trader in obtain a refund of her purchase spark plugs with compressed was not satis breach of section 13(i) of the Fair tender and is accepted in an “as apply in cases where goods are fied. The Tender Form price of $3,500 and othe Sale of Goods Act 1908 and that this case breached s.13(i) of Trading Act 1986. r costs air. The purchaser says tha and the Disclosure Document by the is where is” condition and as such t fixed the vehicle had been suppl supplied (a) by auction; or (b) by Fair Trading Act in representing, because she says the vehicle was the vehicle’s “stutter” but not ied to which the purchase carries no warranty and therefore her by tender. The letter a competitive tender. The words r appeared to following the sale of the v At: the Motor Vehicle Disputes not of acceptable quality within the overheating in the radiator lso stated purchase the vehicle by tender ehicle to Tribunal, Whangarei, 7 April 2011 is not subject to the “Consumer that s 41(3) of the Act ex “competitive tender” are not the purchas the meaning of the Consumer reservoir tank. cluded and on an “as is where is” basis er on 4 April 2010 by guarantees act 1993” Or the “Sales supply by competi defined in the Act. a negotiation which involved the Guarantees Act. The purchaser took the vehicle tive tender. The on 29 November 2010 were both (sic) of goods act 1908”. trader’s solicitors also informed her Mr Mustchin for the trader trader accepting the purchaser’s The trader said that the vehicle to Oakleigh Service Station about sham documents intended to own expense. The trade There was also a secon that she had bought the vehicle claimed the vehicle had be car as a trade in, that a “tender” r was also was supplied to the purchaser by d one week later who sent the en create the false impression in document headed “Disclosure”, supplied to the purchase required to pay the reasonable tender and that accordingly the on an “as is where is” condition r by had taken place and subsequently radiator to be repaired and flushed the purchaser’s mind that she costs of the hearing of $650. In reply to the case Dewar v E&H Auctions Ltd: which in part included: and that there was no warranty or tender. Mr Mustchin said that attempting to have the purchaser Act does not apply to the sale of the engine block. The rad had contracted out of the Act “E & H Auctions Ltd, trading as iator top guarantee with the vehicle. there was, in his opinion, no need acknowledge that he had bought the vehicle to the purchaser. In the tank was replaced, the system was and had no recourse a ‘Whangarei Car Auctions Tender for there to be another or other gainst the the vehicle by “tender” when qui Bruce Dell’s comment alternative the trader says t bled and checked for leaks, and The Tribunal on receipt of the trader for the condition of the hat if the Site’ Takes no responsibility for this tenders for the exclusion in s 41(3) te The Purchaser sought to reject th Act does apply the trader consider purchaser’s application o clearly he had not done so. It is not e the vehicle was returned to the n 10 vehicle. The Tribunal considers vehicle and obtain a refund of the s vehicle once sold. […] February 2011 issued a (b) of the Act to apply. possible for a trader that the vehicle was of purchaser about 20 December. Minute the trader in having the purchaser to contract acceptable The evidence given by the purchase price and other quality at the time of suppl “Any vehicle may be sold as notifying the trader that the out of the statutory guarantees costs y. Soon after she had to stop the sign the Disclosure Document claiming breach of ac a part or as parts; it may be sold Tribunal wished the trader to purchaser and not challenged consumers have as of right ceptable vehicle because the temperature which purported to exclude all quality under Th for wrecking purposes o produce evidence at the he by the trader was under the Consumer Guarantees e Consumer The evidence r as an gauge showed the engine was that on 29 warranties breached s 43(4) of the incomplete unit. aring November 2010 the trad Guarantees Act as at date of The purchaser went to the – preferably by sworn affidavits er’s Act unless the sale agreement overheating. The vehicle was Act which provides: sale. The Dealer argued that the “All vehicles ‘MUST’ be checked from the other parties who lodged salesman Mr Stewart had satisfies section 43(2) of that Act. We drove the car to Oakleigh trader’s premises in Whangarei towed back to Oakleigh w [Case featuring in ‘Competitive “(4) Every supp and where possible test driven to ho contacted her to advise her that lier and every sale was by Tender and that the in November 2010 where she tender bids for the vehicle – Traders who use sham tender and did a TeeKay test o manufacturer commits an offenc Act did not apply. Failing that, the make your own opinion as to what n the engine regarding the tender offers they the owner of the vehicle was e auction documentation also risk inspected and test drove the and found combustion gases against section 13(i) of the Fair condition the vehicle is in and to willing for the trader to sell it Dealer argued that the vehicle was vehicle but explained to the had made so as to bring the prosecution by the were present in the c sale Trading Act 1986 who purports to Commerce in fact of acceptable quality at time make sure it is fit for your purpose.” oolant. They within the s 41(3) exemptio to the purchaser for $3,500 The Commission.” trader’s salesman that her budget informed the purch contract out of any provision of thi aser that there n in the purchaser also gave evidence of supply. The Tribunal considered tenders under spotlight’, and in Service Station MTA, and spoke was $3,000 to $3,500. The purchaser says that after Act. The trader has not done so s The Tribunal’s view is that this was either a crack in the cylinder Act other than in accordance with she signed the Tender Form and that to her knowledge the trader whether there was a sale by The trader initially had a price Mr Mustchin said at the is prima facie a breach of s 13(i) of head or the head gasket had hearing subsection (2) or section 43A.” competitive tender; was the and the Disclosure Document that there was no had not referred her te the Fair Trading Act 1986. I vehicle of $5,500 on the vehicle, blown. They recommended the other tender nder offer t is not which was documents she paid the trader of $3,500 to anyone else nor had The Tribunal in a decision dated of acceptable quality; if there was subsequently reduced to $4,000. received for the vehicle. possible for a trader to contract vehicle’s cylinder head needed 2 November 2010 Comrie v The a breach, whether $3,510 in two EFTPOS any more than a few minutes out of the statutory guarantees failure was On the morning of 29 November transactions, to be removed and checked or a Mr Mustchin told the Tribunal Auto Group Limited T/A National arranged insurance on the vehi elapsed between her signing one of substantial character and to Mr Sam Stevens Manger 2010 Mr Stewart telephoned that the appearance and name of consumers have as of right under disputes case ‘“Tender” was not cle second hand engine fitted, with a Vehicle Tenders & Auctions [2010] with the assistance of Mr Stewart, the tender offer and the trader accordingly, whether the vehicle the purchaser and offered to sell his premises makes it obvious that the Consumer Guarantees Act cost of about $1650. MVDT 193 stated: “Traders could be rejected. and drove the vehicle away. the trader conducts auctions and accepting it by receiving her who unless they do so in terms o her the vehicle for $3,500. The attempt to exclu The purchaser went to the trader EFTPOS payments and handing de the provisions f s The perennial case of Stephens purchaser accepted that offer The purchaser noticed the sells vehicles by tender. He say 43(2) of the Act and corporat and and spoke to Mr Mustchin to see s of the Consumer Guarantees Act e v Chevron Motor Court Limited was vehicle’s engine “stuttered” he is an auctioneer. He says he i her the keys to the vehicle. traders who do so risk prosecut went to the trader’s premises on if the trader was prepared to work by claiming that a purchaser when she drove the vehicle that s ion considered. The Tribunal regarding his statement on the afternoon of unaware of any legal require The Tribunal is therefor and a $200,000 fine. seems competitive and therefore was no e 29 November to with her to help her resolve the ment was supplied with a vehicle by to have hardened on the fact that afternoon. She says that on that prevents him from satisfied from the evidence t complete the transac 1 problem. He told her he was not. supplying hat competitive tender or auction where With regards to the vehicle, the tion. December while taking the vehicle the supply of the vehicle to the Dealers cannot try and avoid Before she purchased the a vehicle by tender unless there is Tribunal did not consider that the the On or about 25 January 2011 there is no evidence of a bona provisions of the Act and out of town she discovere more than one party tendering for purchaser did not take plac vehicle would have been acquired a refund of vehicle the purchaser was handed, d the the purchaser handed the trader e by fide competitive tender process or radiator reservoir (header) competitive tender the full price was required. This was read and signed a document tank was the vehicle. in the sense by any reasonable consumer fully a letter rejecting the vehicle and a genuine auction having been rather interesting considering the tender’, Autofile, 10 June] phone cross over to the Disputes boiling. She estimates she would that the tender offer made by acquainted with the fault this headed “TENDER FORM” which requesting a refund. This le held prior to the sale of the vehicle very strong disclosure the Dealer have only travelled about 100kms tter the purchaser was not made vehicle has, and accordingly w had been filled in by the trader, was acknowledgedBruce Dell Law b – “problem solver”The decision should be aware that in the vehicle at that time. y the trader’s or considered in a rivalrous or section 13(i) as had selling the vehicle “as is where describing the vehicle and the The Tribunal considered whether satisfied the fault with the vehi solicitors on 25 January 2011 of the Fair Trading Act 1986 makes cle is” and indicated that there was no The purchaser took the autofi le are delighted to have Bruce as part of the Autofi le tea competitive situation. Accordingly the vehicle was supplied to the was of substantial character. by letteron to the the purchaser.lessons to The m advising our readers it an offence for a trader to make a warranty or guarantee with the be learned frompurchaser past Motor by competitive Vehicle Disputes tender. Tribunal case the Tribunal finds as a fact that The trader was ordered to If you require legal advice give Bruce false or misleading representation vehicle. This case is an indication for Tribunal that the Pulsar in this a call on 09 570 5036 s the vehicle was not sold by refund the purchase price of concerning the existence, exclusion, future Dealers who try $3,510 and uplift the vehicle at its and avoid Bruce Dell Law – “problem solver” the provisions of the Act. . Bruce Dell has been closely a ssociated with the auto in Autofile is now published twice per month and sent COMPLIMENTARY to over handled many complex legal issues on beha dustry for 37 years, during lf of dealers both in Auckland this time he has fi le are delighted and Palmerston North 1400 auto industry and associated businesses throughout New Zealand We have repurchased the car - opinion had a blown head gasket bd auto to have Bruce as part of Vehicle Disputes Tribunal cases. If you requi the Autofi le team advising our r re legal advice give Bruce a call oneaders on past Motor law 09 570 5036 If this is your target market - wE REACh IT 14 | www.autofile.co.nz

The voice of the auto Nissan Pulsar - from Miss Dewar, or cracked head which we have industry and had the car checked for proved to be wrong. www.autofile.co.nz | 15

blown head gasket or cracked I asked him if he removed the

. cyl. head by local MTA Garage & thermostat, he answered yes he did.Problem can bd be accepted. She elected to take the car to solver law Radiator repairer, to discover the We have sent letter to the “The Decision has been issued Oakleigh Service Station and got Thermostat had been removed. MTA re his wrong views asking and cannot be altered by the the wrong report as we all did. As good engineers know you for reimbursment of all costs re Tribunal once it is released and Lots learnt with this complant cannot run a N15 Nissan engine this case. in the public domain.” - we know what to do if there is a without a thermostat because Also wrote to Disputes We also wrote letter to the next time. water system is on bypass. Tribunal explaining situation as purchaser of the Pulsar Miss Replaced thermostat wash it is now and would or could they Dewar explaining the outcome, Yours faithfully, out RADWELD from system reverse the decision. Their reply and said if she had taken the car test drove car for 70k›s around was that, “Once the hearing is to AE DIXS garage as we did the Eric Mustchin 100kph no over heating. complete no more submissions overheating would have been fixed. Director E&H Auctions. Punter 1 - Trader 0 The hidden dangers of new Privacy Laws

The new privacy laws affecting impractical. Take us for access to the motor vehicle Trusts. If an owner has ‘opted register have been in force for out’ you can’t identify if the nearly 2 months, and ‘un-intended’ vehicle is in fact owned by a a test drive... consequences of this new law trust, which may require trustees are now beginning to show consent to sell the vehicle. Eg We realise not every person fits standard vehicle themselves and cause problems. signing the VOSA! finance criteria. That’s why at Avanti Finance we base Here’s what to watch out for; The solution to some, but not each application on the client’s individual profile. Joint owners. If an owner all of these problems, is to have has ‘opted out’ they have also your customer opt back IN to the Now there’s an alternative to get more customers on the road with approved finance deals. hidden any ‘joint owners’. Beware motor vehicle register by calling matrimonial property and other 0800 108 809 so you can then So take us for a test drive. ‘owners’! verify their details, and identify Contact Leyton Mercer De-registered vehicles: other ‘owners’ associated with the Phone 021 706 215 or 0800 808 058 Whether it be a caravan or a de- vehicle. registered / lapsed car, you are In the meantime we are www.avantifinance.co.nz now flying blind. discussing these issues with the Owner history. Despite the NZTA and Ministry of Transport. ability to request owner history Watch this space. as a manual one-off request (under Section 236) with NZTA, the process is onerous and

4 | www.autofile.co.nz news ACC levies based on safety ratings?

The recently released Safer says it is a possible rated, it’s very difficult to Journeys Action Plan 2011-12 direction to take, and put a regime in. I think contains a Safe Vehicles section, if it became policy there’s a bit of water to containing a number of focus he can’t see any go under the bridge on areas, but only one that intersects major objections to that one yet.” with the light vehicle trade. it, though he notes a She agrees that The focus area, ‘Increase number of challenges. cherry picking safety public awareness and demand “My understanding features, such as for safer light vehicles’ includes is that the current electronic stability a number of actions, including [software] system control and side curtain NZTA’s responsibility for will not support that air bags, would make the promoting and expanding particular type of implementation of any the use and coverage of the approach. However that’s the feature at the moment sort of regime easier. Right Car website, promoting they are doing a modernisation that can’t be legislated by law, But picking which ones to electronic stability control, project, so may be able to in two but has got significant potential include and exclude, and possible and influencing commercial or or three years time. to reduce accidents and death.” weightings, could be contentious. company fleet buyers through “You’ve then got the added AA’s Technical Services “You’d have to know that you’re targeted discussions about the complication of the driver, so Manager Stella Stocks sees picking the right features, let’s be benefits of five star vehicles. there are a number of tiers and similar issues. honest, any of those safety features Ministry of Transport is tasked levels to it.” “One of the problems is that have got to be an advantage. with reviewing the Australian ‘Stars The more immediate problem because programmes like ANCAP “Whether that’s the right way on Cars’ initiative to assess whether is that ANCAP testing is not are not compulsory, then if you to go or not I think is still up for it is suitable for New Zealand. ubiquitous among the new don’t have every single vehicle debate.” One further action in this vehicle fleet. focus area is for ACC, to “develop “Not all vehicles get tested, incentives to be used through the and not all model variants get risk rating and levy setting process.” tested. You’ve got potentially A query to ACC about vehicles that will be 5 star that TESTING whether this could result in the miss out, through no fault of the ACC levy being scaled based distributor here.” on safety such as Australasian Kerr says that there is one STATION. New Car Assessment Program model currently on the market (ANCAP) ratings received this that that was tested in the two- Transport Service Delivery Agent for response from Peter Wood, wheel drive variant, receiving a 5 Manager Injury Prevention and star rating, while the four-wheel See us first for Insurance Services: drive variant was not tested. “As part of ACC’s commitment “They can’t at the moment, to being a more commercially because there are differences focused organisation, we’re between the models, say that the currently considering a number two-wheel drive is equivalent in of potential ways in which levies terms of the safety performance could more accurately reflect the to the four-wheel drive. actual injury risk of individual “It really shouldn’t be up to levy payers. the distributor to then have to “At this stage, we’re unable to pay for an ANCAP test.” Specialists in Used Import Certification provide details of changes being Kerr says to get anything considered, given they’re still at into place there would be a the research or planning stage. number of issues needing to be “ACC will shortly begin its annual resolved, though he says there FREEPHONE OR VISIT US ONLINE levy consultation process, and we could be solutions. FOR A LOCATION NEAR YOU! invite submissions from anyone One possibility could be to with ideas about how we could link reduced levies to certain 0800 GO VINZ improve the current approach to specific safety features. levy setting and collection.” “From our point of view, www.vinz.co.nz Motor Industry Association electronic stability control would Chief Executive Officer Perry Kerr be the most logical one, because

www.autofile.co.nz | 5 news Used dealer models 2012

In evaluating possible used “I think there’s always been taken up at different times, and Graeme McDonald import dealer models in 2012 and confusion between the two, then the one next to it becomes beyond, a number of options have it’s got nothing to do with vacant. There’s definitely been crossed the pages of this magazine, availability, everything to do a surplus of retail store land for including higher mileage vehicles, with affordability. a long time in our trade, and higher value, newer vehicles, “Anything is available for that trend will continue and vehicles from different source a price - you could have an probably it will get exaggerated markets including the UK, as annual production of GTR next year. well as the more dubious, such Skylines come down here “There’s probably a number as accident damaged vehicles – they’re four million a pop – of traders who are reconsidering repaired in Japan. okay they’re available, but are now their business options Graeme Macdonald of they affordable? – No.” for next year, both in terms of Croydon Wholesalers and Macdonald says that from staffing levels, and also the Imported Motor Vehicle anecdotal conversations, it model of business they actually Industry Association (IMVIA) seems the likely scenario for have, whether they’re going to North Island Chair says dealers next year is that many retain a bricks and mortar store- going to be looking at different that what is essential for will be forced to scale back. front approach, or whether it alternatives. understanding the position “We’ve seen shrinkage in will go further into warehouse “Higher mileage cars are of dealers is that while three the retail market place for style selling.” one alternative, but they’re not digit compliant cars may be some years now, the real estate Macdonald believes that necessarily as available as one available, it’s got nothing to do you see around the place has while the warehouse model might think; later model, high with the availability of the cars, probably been vacant for quite is increasingly viable with mileage cars have a propensity but affordability. some time. “Different yards are the advancement of internet to be snapped up by the selling, it’s also a good choice African market where odometer in uncertain times with more fraud is still rife, so it makes control of cost variables. economic sense to buy a high “It’s obviously become mileage car and then wind it more popular as time goes on back and send it to Africa. because you can scale your “Therefore the expenses right back, hibernate disproportionate value down, and shrink effectively between a low mileage and a into a one-man operation if high mileage one is not as great you choose to, without the as you might think.” overhead of a big store. Macdonald believes another “And you may choose to do option will be looking harder at that for a year or two until you previously accident damaged see which way things are going cars that have been repaired up to go.” in Japan. Macdonald says that many “Certainly what the rule in the industry have also does paradoxically is that it will made clear their plans for staff lower the standard of vehicles redundancy. coming in, without any doubt “We’ve certainly heard of at all.” Trans Future 6 Voyage 47 some stories out there in the He says that with osaka 4 Jul, Nagoya 5 Jul, kawasaki 9 Jul, industry of redundancy, and I affordability being the key auckland 27 Jul, Lyttelton 29 Jul, Wellington 31 Jul, Nelson 1 Aug think that will be a trend that factor, dealers will be looking will continue as we get closer for ways to get around the fact Trans Future 7 Voyage 47 to the time.” that compliant vehicles cost osaka 16 Jul, Nagoya 19 Jul, kawasaki 23 Jul, Looking at possible dealer more to land. auckland 11 Aug, Lyttelton 13 Aug, Wellington 15 Aug, Nelson 16 Aug models, he says there isn’t “If affordability is where the really a clear option. market needs to be, the market Trans Future 5 Voyage 41 “There’s been discussion will do what ever it needs to of looking at other source make sure that there are cars osaka 1 Aug, Nagoya 2 Aug, kawasaki 6 Aug, markets, the English market that are affordable. auckland 24 Aug, Lyttelton 26 Aug, Wellington 28 Aug, Nelson 29 Aug place, the Singapore market “And that just means place, at the end of the day as altering the standard of the far as Japan goes everyone is car that comes in to suit the continued on page 22

6 | www.autofile.co.nz news Emissions rule a boon to new car sales?

While used importers may “We’re already seeing with Matthew Foot price tag of the Chery J1 will be scouring lists of models that our four franchises that they’re certainly prove alluring to used will be compliant next year, our main buying area, new cars car buyers, especially when and with IMVIA predicting between $15,000-20,000, we’re considering its price-equivalent severely curtailed numbers of selling a lot of those. from Japan. used imports, is the new vehicle “The Chinese will displace a “It would be quite easy to go industry expecting any positive lot of those places as well, there’s and buy a new car with a new impact from the lower numbers? a big opportunity for that new car warranty, and the car would Matthew Foot, Dealer Principal era of motoring, the Chinese be three years old in three years at the Brendan Foot SuperSite manufacturers, I think they will time. And that would be the in Wellington, with KIA, Holden really get a big boost from the appealing factor.” and Suzuki, and Hyundai on a emissions rule.” Asked whether he believes separate site, believes there will With their Railway Ave dealers importing higher value be some positive flow on for new dealership in Hutt City located years to get the public’s confidence cars will then move into more vehicle retailers. down the road from the new in buying a brand, and seeing them direct competition with the “I think with the numbers of Chery and Great Wall dealership on the roads. new vehicle industry, Foot says Japanese imports dropping – and we in Wellington, Foot says while he’s “And in that period the cars he believes new car pricing is assume that they’re going to drop conscious of their price points, it are obviously get better and becoming too competitive. for a number of reasons, not just the will take a while for the brands to better, and the Chinese will be “Take an SUV like the KIA emissions but with the effect of the become established. in development half the period Sportage, priced a little over tsunami on the domestic market as “It’s a new area in the market for of the Koreans, but it will take $30,000 – the Japanese imports well – I think that there will be a lot new cars. We’ve had brands that some time to actually build the won’t be able to compete with of opportunity for sub-$20,000 new we’ve had to build, for example confidence in the brand.” that. Buyers are well informed, car vehicles. KIA, and it does take three to four But Foot says that the $13,000 continued on page 11

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www.autofile.co.nz | 7 news

A vacant car yard in Auckland's New Lynn

Death of the car-yard?

[ continued from page 1 ] economy there’s no appetite for the industry are probably hanging they first bought a car 20 years ago, space, dealers are moving out into development. on by their finger nails.” says Milner. more warehouse type situations “Car yards are still too expensive He says dealers are looking “But I think the used car dealers, “In our position with some of the to develop into any other form of for warehouses they can rent for cost-wise, if they’re using the properties we’re selling now, we’ve property usage, the only other form $20,000-$30,000 a year, or even internet, selling only on price, then had interest from used car dealers in they can be used for at the moment $30,000-40,000. they will operate out of sheds, and non-traditional retail type premises, seems to be fast food outlet. “Anything over $50,000-60,000 they can do so.” often big warehouses. “KFC developed their outlet at a year is very hard for a used car But he says, there are obvious “To be fair that’s really only been Greenlane, that was formerly a car dealer to operate from.” credibility problems for dealers the lower end or lower price range yard. Another usage, one of the car He believes the franchise that aren’t known, that may put off used car dealers, but there still yards in Greenlane is being used formula, with new cars, used cars, some customers. seems to be a bit of demand from as a gym, and another one is being and parts and service necessitates “You start with Joe Bloggs conventional franchised operators. used to sell motor homes, so there’s a road front yard, and that isn’t and where do you go from there? “The sites that have been a bit of change of use for them, but likely to change. You’ve never heard of him, the disappearing around the city have the upshot of it is that landlords Rod Milner, located on been small used car yards, that Rod Milner have to drop their rents to get car Greenlane’s Great South Rd, have really evaporated, obviously dealers back into the game.” believes it’s an asset to have a road with redevelopments and With yards conceivably standing front yard. increasing land values.” empty for years, landlords are keen “At the end of the day, you get But with development pressures to lower rents to keep tenants in the passing by traffic that you can in the capital, a ready-to-use car place, or meet the market to entice never get in a warehouse. yard has value for the right buyer. car dealers into renting their yards. “I would still prefer to be on a “There seems to be a little bit of “Tenants are king, there’s no front row every time. You look at juggling with new car franchises, question. There’s not a bunch of all the new car franchises, they’re we just sold the Honda Cars people knocking down doors staying there. site in Railway Avenue in Lower wanting to get into the car industry. “They don’t operate out of back Hutt to Ateco, after Honda Cars “To get a tenant to come in and streets and any time they’ve tried consolidated and pulled back into lease a car yard, the landlords have it, it doesn’t work.” Wellington City. had to drop the rent by 50 percent He acknowledges that there are only way you can sell is on price “Ateco saw it as an opportunity to to make it attractive.” pros and cons to both approaches, and not quality. effectively take over an established Greer says with no easy ‘out’ for but says that customers still like the “But there’s room for all, that’s dealership in an established location, landlords of car-yards, if there’s no fact that they have access to a yard. really what it comes down to. Some in among some fairly serious players, cash to develop, it leaves many “People still like going to a nice, people want to operate that way, and have an instant dealership with little option and caught well-appointed yard. Customers some want to be out in the open.” without having to reinvent the between a rock and hard place, can look around, they get a chance wheel, so that was probably one dependent on dealers. to talk to the salesman. It’s a different story in of the more significant ones we’ve “A lot of car yards now what “Also the customer feels a lot more Wellington. There land is at a done this year.” they’re worth they’re not getting comfortable coming into an open premium. Andrew Smith, of Bayleys, While tarmac show yards the return in rental, so they’re not yard where they don’t feel trapped. is another ex-motor industry may stand empty in Auckland, in really viable. And then there is the obvious veteran who is now in real estate. He Wellington the smaller yards are “And a lot of those that are in safety of returning to a site where says that with the demand for retail long gone. continued on page 12

8 | www.autofile.co.nz news McMillan Roll-Royce’s representation in Newmarket

Team McMillan has been the world to take part in a North to Bob McMillan (front) and Brand announced as the authorised Rolls- South tour organised by the Silver Manager Neil D'Arcy-Brain Royce dealer for New Zealand, and Ghost Association. will open a showroom at their Great But the implication that the South Rd site, though according to remaining 12 Rolls Royce were releases, vehicles are already able to imported for the market in 2010 be purchased. could indicate local demand. Team McMillan had previously McMillan says that functioned as a sub-dealer and the number of vehicles service agent to Rolls-Royce Motor imported privately are Cars Australian dealer Trivett Classic, quite significant. which included providing owners of He says further new Rolls-Royce motor cars with a service vehicles are likely to have facility and workshop for the last been bought in than are There was sustained Vickers in 1998, with Volkswagen seven years. shown in the MIA figures, demand for both Phantom acquiring the “Spirit of Ecstasy” In making the announcement, though he didn’t have the and Ghost models, with bonnet ornament and the shape of Bob McMillan declared he will figures to hand. around 80 per cent of Ghost the radiator grille, while BMW bought be stepping away from the from “Though clearly not many customers new to Rolls-Royce, and an option on the RR trademark. day-to-day management of Team because there hasn’t been the world-wide 1592 motor cars were Since 2003, Rolls-Royce Motor McMillan’s BMW and MINI businesses representation here. We haven’t delivered to customers in the first Cars has been a wholly owned to become the group’s Executive been able to advertise or promote, six months of 2011, the best start subsidiary of BMW. Chairman, replaced in the Managing but there have been new and near- to a year since the company was It makes all its vehicles at Director role by Ian Gibson. new Rolls-Royce being bought into launched in 2003. its factory at Goodwood, West “I’m delighted to be offered the the country privately.” Rolls-Royce Motors was sold by Sussex, England. opportunity to present the world’s He believes that the official most prestigious marque to New showroom and recognised support Zealand buyers and I am delighted will also make people more New Vehicle Sales Manager Ian is willing to step up to look after comfortable with buying the product. Team McMillan’s BMW and MINI “There is opportunity there to automotiveemployment.co.nz customers. Ian has been with Team develop the trade mark clearly, NEW PLYMOUTH McMillan for 6 years and our BMW and develop the product here in Move to the and MINI clients will be in very New Zealand well beyond what city voted ‘Best small city capable hands.” it has had in vehicle numbers in the world’! The immediate question that over the last few years, with a full comes to most minds is how dealer representation and new- An unequalled opportunity to secure this senior sales management role in one of New Zealand’s most respected franchise sites has just become available, making much a Rolls-Royce will cost. But car showroom, salespeople, and this a truly unique opportunity is this vacancies location of New Plymouth. unfortunately there’s no dollar signs marketing and advertising.” All factors considered, it would be dif cult to argue that there is a better to titillate: no price is given for the The Newmarket showroom, franchise site or motor industry company anywhere in Taranaki. For the vehicles, with New Zealand dollar being built to exacting Rolls-Royce  rst time in many years the company requires the services of a New Vehicle Sales Manager to lead the Holden and Mazda divisions at Max prices for the motor cars depending standards, is scheduled to be Pennington’s Autocity from this central New Plymouth location. on the specification. completed by late October, and will To successfully secure this role you will need a solid new vehicle The second question may be hold two stock vehicles - a variant background as well as proven sales management skills. Professional the expected number of retail units. of the Rolls-Royce Phantom and a presentation, strong negotiation and pricing skills are just some of the Motor Industry Association figures variant of the Rolls-Royce Ghost. attributes sought. Lifting the sales performance of this already successful sales team through positive means will require a fully motivated, dedicated show that two Rolls-Royces were Neil D’Arcy-Brain, as Rolls-Royce and skilled manager, however the timing has never been better given the retailed new in 2010, though none in Brand Manager and Des Parsons, a unblemished trading reputation of our client which has been fostered with 2009, and one in 2008. Year to date Rolls-Royce-trained technician will care and attention to repeat business. 2011, the number still stands at zero. lead a team dedicated to the marque. The unique prospect of joining this company in our opinion is second to Figures supplied by the IMVIA none. Certainly vacancies such as this do not emerge often. In this case the combination of working for a preferred employer coupled with the were more fruitful, showing 24 Rolls- Rolls-Royce recently announced lucrative remuneration and bene ts makes this vacancy an enticing option Royce were imported used in 2010. a record half-year in 2011, with worth further enquiry, all the more given the bene ts of living in one of However investigations by sales increasing by 64 per cent New Zealand’s most desired locations. Autofile last year, when 12 Rolls- worldwide compared with the All applications are guaranteed complete anonymity although contact must be made through the authorised Consultant, Royce showed up in the used same period in 2010. Russell Phillips via email [email protected] vehicle registrations in October, Sales growth was particularly or 0800 67 57 47 or 0274 790 000 at any time. revealed that all 12 were classic strong in the Asia Pacific region, up Applications will be accepted up to and including July 25, 2011. Silver Ghosts, imported from around by over 170 per cent.

www.autofile.co.nz | 9 news

NZ labour market report July 2011 Industry movers in association with Automotive Employment NZ Ltd

Chris Garland, Dealer Principal for The Japanese Earthquake area, senior sales management Ingham Mitsubishi and General Manager and Tsunami has had a vacancies have started to for Ingham Driven in Hamilton and a senior temporary impact on the emerge during July as will one executive within the Ingham Motor Group number of new vehicle sales or two roles for Dealer Principals. is leaving New Zealand to commence vacancies available. Some The return of distributor level employment with the James Frizzell Group. dealerships are taking a vacancies has been evident in Garland says working for John Ingham and cautious approach to hiring the last quarter and continues the Ingham Group has been an invaluable and sales staff recognising this month. rewarding experience. certain brands may have A minor increase in technical James Frizzell are a large Australian franchise automotive group. They limited new vehicle stock and technical support vacancies retail Audi, Volkswagen, Mazda, Hyundai, Chrysler, Jeep, Dodge, Isuzu, availability over the next occurred this month as did the New Holland and Husqvarna new and used vehicle product. The group few months. Looking at the increase in these vacancies have dealerships in Southport, South East Queensland, Tweed Heads, bigger picture, vehicle sales during the last quarter. Should Nerang Lismore and Coolangatta. vacancies had been steadily the economy continue to Garland has been appointed as a General Manager for Frizzell’s on rising for 12 months and as improve as predicted, any the Gold Coast and will be based at Tweed Heads. The dealership in new vehicle stock availability increase in vehicle sales Tweed Heads is Hyundai, Volkswagen, Chrysler, Jeep & Dodge. increases dealerships may volumes will reflect a steady Garland says he’s excited by the new role as well as the lifestyle find themselves increasingly increase in the shortage of change. He says there are lifestyle opportunities in the Gold Coast, competing to secure talent. technical personnel. noting that the motor vehicle industry is only open 5 ½ days a week. In the key appointment Russell Phillips “It’s something I’ve always wondered about, I need to go over there and satisfy myself, ‘Are we any better off living in Australia?’ “And it’s a good combination of franchises for one dealership, it’s an exellent opportunity.”

Warren Carter has recently been appointed General Manager, Farmer Auto Village, Audi, Volkswagen, Skoda. The company is a substantial franchise automotive group retailing Chysler, Nissan, Jeep, Audi, Skoda, Volkswagen, Subaru, Dodge and Hyundai, new and used vehicle product. Warren was previously General Manager of Pentana Solutions NZ, a technology provider to the motor industry and formerly the Dealer Principal of Newmarket Nissan. New MD for Ford NZ Ford New Zealand driving the organisation and Daryl Feast has been appointed to a consulting role at Automotive has announced the the brand forward.” Employment NZ and replaces outgoing consultant, Mike Perez who appointment of Neale Neale Hill first joined has secured a senior role at Pentana. Feast recently migrated to New Hill as new Managing Ford Motor Company South Zealand from the United Kingdom. He has management experience Director, due to start in Africa in 1991 as a graduate to the level of Sales Director. He has held this position 25 July. trainee. He held a number former roles such as Group Franchise Hill arrives from the of positions before being Manager to Service Manager. Daryl is a Ford Asia Pacific and Africa (APA) appointed Ford Marketing Manager trade-qualified petrol and diesel mechanic, head office in Shanghai, where he for South Africa in 2000. accomplished sales person, fleet Sales has been the Cross Carline Brand In 2006 Hill was transferred to the Manager and has previous Immigration Manager for the last three years. APA head office, then in Bangkok, experience. Daryl has been employed by Trevor Auger, who has served as to take up the position of Regional Automotive Employment NZ to strengthen Managing Director for the last three Launch Manager for all passenger cars. its international recruitment reach. years, has chosen to move into a sales When the APA head office management position. relocated to Shanghai, Hill was Spencer Morris has moved internally from heading up the used “It has been a privilege working appointed as the APA Cross vehicle division at Toyota New Zealand to General Manager, Customer for Ford New Zealand as Managing Carline Brand Manager, acting as Services, after Paul Carroll was seconded to Singapore. Director and I’m very proud of what a key interface with the global Neeraj Lala, Assistant General Manager of the team has accomplished in the marketing team. Marketing and Product, adds Used Vehicles to his time I’ve been here,” said Auger. Hill’s Linked In profile lists a existing responsibilities. “I’m also pleased to be able to hand number of interests well-suited over the reins to someone new to this country, namely Golf, TO FEATURE IN INDUSTRY MOVERS EMAIL [email protected] that can in turn come in with their Photography, Bird Watching, Gym, own ideas and talents to continue Rugby Union and Cricket.

10 | www.autofile.co.nz news continued from page 7 Emissions rule a boon to new car sales? they get on the internet and it is, and [importers are] they know what they’re looking also competing with other for. They want to spend $25,000, mature markets looking to they’ll pay the little bit extra or develop their own used car finance it and get a new car. supply chain. ‘The market is so competitive, “It’s difficult to get them, every manufacturer has got and certainly we’ve tried on a car in that range, and every numerous occasions to buy manufacturer is trying to price it late model used vehicles cheaper. Our dollar has become in Japan, and it’s proven stronger as well against the US, US uneconomical. In fact by the have a cross-exchange with the time you actually buy them Kia's Sportage starts at $33,990 Won to buy Korean cars, so the and land them they’re just Koreans are getting stronger and about the same price that a new it’s through warrant of fitness like force the industry or the fleet to stronger, and they’re going to be vehicle would be.” we’ve done with noise emissions. move forward. in a very competitive place.” Harris says that the Japanese “There’s no scrappage scheme “When there’s so much Foot believes that used domestic market will also have as such, which worked overseas pressure on household spending importers will be forced to a stronger appetite for used to encourage the fleet to upgrade, you don’t really want to go and source stock locally out of vehicles after the impact of the and there’s no penalty on heavy force people into buying new cars auctions, and believes it will be a March tsunami. emitting vehicles. Until we actually as well, because that’s not a vote hard place to work with smaller “I think there are a lot of put some of those mechanisms in winner. So there’s a lot of barbs in margins, and looking for volume factors that will make it very hard place, there’s nothing to actually this argument.” instead of profit. for countries like New Zealand “If there’s a loser, it’s what to go and buy used vehicles at a they keep repeating in the press, reasonable price.” After Sales things like Toyota Estimas, for Perry Kerr has said that Japan has lower-socioeconomic families, been a declining market for buyers Manager they’ll struggle to get those of used vehicles for a number of Jeff Gray BMW and MINI - Wellington automotive employment.co.nz vehicles and be affordable – that years, (Autofile, 12 May, ‘MIA asked The Jeff Gray Group is a privately owned company that has grown to will be an issue for them.” to comment’), something which cover roughly 60 percent of New Zealand. As New Zealand’s largest Glen Harris, Marketing Harris says is a positive. BMW Group, a focus on achieving excellence in all things BMW has led to Manager at Mazda New Zealand, “For a new vehicle importer sustained and proli c growth. The Group now has branches in Wellington, Christchurch, Hawkes Bay and the Manawatu. doesn’t believe that there will be it’s a very positive step. But I much of a positive flow-on for the acknowledge at the same time Jeff Gray BMW and Mini in Wellington is the  agship dealership for the Jeff Gray Group. The dealership is one of New Zealand’s best appointed BMW new vehicle industry. there will be some parts of our and Mini sites, ensuring world class standards of excellence are provided “The vehicles which will be national fleet that won’t have in a state of the art environment. most affected by the emissions the means to buy a new car, so I The position involves managing a highly skilled team of 25 After Sales rule will be the older vehicles guess the difficulty is what that personnel employed in the service and parts departments. You will report directly to the Dealer Principal. A strong focus on driving the that are in the Japanese fleet, means for those buyers.” business forward is required as is a focus on ef ciencies. Ultimately you and they appeal to a part of the Asked whether he believes this are responsible for After Sales pro tability and ensuring you exceed the market who would never be in area of the market will simply retain extremely high standards required in managing the After Sales department of one of New Zealand’s premier BMW dealerships. the market for a new vehicle. their vehicles for longer, Harris says “The new car industry that they will, but that from the We seek expressions of interest from experienced motor industry professionals who can demonstrate recent success managing the After probably won’t be affected perspective of the emissions profile Sales activities of franchise motor vehicle dealership. because we don’t currently of the fleet it’s imperative that the All applications must be sent directly to the authorised compete for that low end, low fleet be rejuvenated. consultants at Automotive Employment NZ. Applications from capital outlay buyer in the used “As we look to our own third party organisations or other recruitment companies will not be considered. The preferred method of application via car market.” domestic situation the older the email: Contact [email protected] Asked whether used importers fleet is, the worse profile it has in Enquiries requesting further information can be made to Russell will focus on higher value terms of its emission standards. Phillips on +64 9 271 3200 or Freephone from within NZ 0800 vehicles, Harris says he’s unsure The fleet is too old and needs to 67 57 47 or contact Russell on 0274 79 00 00. Quote reference whether they’re that viable. be rejuvenated. 1070. The closing date for applications is July 31, 2011. “Late model Japanese used “It’s not something that we can imports are very expensive to buy control on our own, it needs to be with the exchange rate where regulated and enforced, whether

www.autofile.co.nz | 11 news continued from page 8 Death of the car-yard?

“We’ve got a shortage of land, industry, the distributors that so they’ve disappeared and have we had any involvement with, been replaced by different uses their principals were always of that are unrelated to the motor the view that if you’re going to vehicle industry – that is higher have a representative brand in and better uses prevailing. New Zealand, you have to ensure “The Te Aro land in Wellington that the capital city has adequate which is the area where the representation. car yards are, land is probably “So if you look at the key sites somewhere between $1,500 and in Wellington they are distributor $2,000 a square metre. owned. And quite often – and I “It’s pretty hard to have a small don’t know if they would admit to lot of 25-50 used cars on there and this – in our experience, and our site and as long as they own the “If you look at every other make that viable – those sites can knowledge would indicate that a operations in New Zealand they major city in the world a lot of usually stand a 27 or 40 metre high lot of those rents are subsidised so will continue to own key sites like those franchises are moving development, you can’t make it as that their chosen dealer will occupy Newmarket in Auckland and Kent out of the central city they just a small used car lot unless it’s just a those premises, but at a rental that Terrace in Wellington. can’t afford to be there. Even holding income while looking for a is viable rather than a market rental.” “It doesn’t matter whether the Sydney now you’ll hardly see a redevelopment.” He says this is part branding, equation works or not. They want to car dealership in the central city Asked whether franchise dealers and a worthwhile loss leader to control their representation at that they’ve all moved out towards the can be successful with those kinds have a great site in the capital city. site, they’re factory-owned outlets, airport or outlying areas.” of rental rates, Smith suggests “I think it’s pretty clear with a so they own the operations, they In some major cities, dealerships that in some cases dealers may be lot of those sites that they’re larger own the land and buildings, and it exist in the ground floor of a paying reduced rent. than needed for the volume of doesn’t matter that the economic skyscraper, sometimes only with a “In Wellington the key product they sell, but it comes equation doesn’t make sense, it single model on display. franchises are quite often factory down to where you want to take doesn’t have to. But Foot believes that for or distributor-owned premises. your profits and where you want to “The smaller brands – the franchise dealers, larger premises Even dating back to the ’80s take your tax. second and third tier brands are here to stay. when I was in the motor vehicle “The distributor owns the generally don’t have the luxury “There’s two schools of thought, of being able to control their and I think a lot of manufacturers Frank Willett believes that own sites, which is generally I realise that with the internet people the further south you head from thought quite interesting that are doing research online first, and Auckland, the less sense the Ateco thought it in their interests know what car they want to look at. warehouse business model makes. to control their site, so rather than “But for the car dealer it’s “I think you will find that have a Chinese brand tucked away important to have service dealers in Auckland will in an average location with an clients wandering through their embrace that as an option, average dealer, they’ve got a prime showrooms at the same time. relatively quickly, but the location, and they’re able to attract “Manufacturers have realised further south you go, that a good dealer accordingly.” that as well, that service operations option becomes a little bit Matthew Foot, Dealer Principal are a way of bringing people back ahead of the time. at the Brendan Foot SuperSite in through the dealership, so there is “You’re dealing with a Wellington, is well aware of the rental a strong focus on keeping service different environment, a lot of pressures of the capital, but says for shops close to the showrooms so people tend to be cash buyers, “They’re possibly less new cars prime location is a must. that they can have that interaction. they like to be able to walk onto confident than someone from “Retail space is very expensive Foot says that as a finishing a yard, and walk from yard to say the Auckland market, in the central city, and in many note, ‘edifices don’t sell cars.’ yard and touch and feel and sit in looking at a picture on the terms it’s becoming prohibitive “It doesn’t matter how flash the the cars. net, and making their buying for non-distributor operations like building is, or how well-presented “They also like to be able to decision. ourselves to be able to afford that the stock is, you still need people to feel that they are dealing with “I do think that the property and make it viable, and sell cars, and cars are still a tangible reputable business people, warehousing type operating that is a challenge. item – people can look at them on because they’ve got used using the internet as your sales “If you look at the operations - the internet and view them, but to that formula of having a yard, will become the way of Mitsubishi, Honda, - they own their they still need to drive them and salesperson, an office, and a the future. But I don’t know own sites, it’s important for them to experience them, and there’s no branded company, and a range what the time frame is for it to have those pieces of land because bad cars on the market these days, of stock to look at. be embraced in the south.” you obviously need service and so that’s still a major component in sales in the same area. the buying factor.”

12 | www.autofile.co.nz The humble vehicle view By David Boshier General Manager What information is readily available to me AutoBase Ltd now that can improve my sales? email: [email protected] AutoBase Twitter: @DealerBaseNZ

Selling on the internet involves no or manipulation. we get asked very few questions window for the prospect which acts chicken or egg; it has a clear starting A daily review of this data takes about. My view of the web is that it as a barrier for them returning to the point and a defining end point. much of the mystery out of selling is a turkey shoot if you get it right. classified web site. Getting this all There is great focus placed on lead within market places like Trade One thing that can be overlooked working correctly is key. tracking, targeted conversion rates Me Motors. Based on one month’s or forgotten and that can be picked A vehicle listed today should have and total sales and most of us carry historical data you can quickly and up by understanding vehicle view its online performance reviewed these figures in our heads and our easily gain the following information: performance is where the customers tomorrow. This is easy for me to business performance depends on  Total vehicle views for the month. are going after viewing the listing. say as I sit at my desk looking out them. The first metric in the internet  Most popular vehicles. There are many services now that at a dark winter’s day, however the sales process that is often overlooked  Least popular vehicles. let you enhance the listing by beauty of monitoring vehicle views is is the vehicle view count; it is such  Impact of pricing adjustments allowing the prospect to click away that it takes so little time and allows a simple measure which requires per vehicle. to view more information. We offer you to catch things early. A newly little interpretation. Once a listing is  Reaction to a change in photos or this service for our customers and listed, well-priced, highly desirable placed on the internet it shows the vehicle description details. thought should be taken on the vehicle should be generating immediate acceptance and position  Duration a vehicle has been listed final destination of these links as proportionately more views than of that vehicle within the market. on Trade Me Motors. depending on where these links lead, your older stock. If not, it needs to At AutoBase we have the privilege  Trending of views per day. it could be a point of weakness. Full be quickly reviewed as it may have of seeing a huge amount of data to  Trending of views per week. advantage needs to be taken of the incorrect pricing, poor quality or no identify trends and changes in the opportunity to move them away from images, missing comments etc. You online behaviour. One clear fact is Having all this information a highly competitive environment like do not want to miss that golden that the internet is no different to readily at hand is only one part Trade Me into your more controlled period of a latest listing. Equally, any most things in life and it conforms to of a powerful puzzle. Mixing this sales process. If your listings are older listing should be addressed the 80/20 rule, more effort is easily information with what you already getting lots of views but your lead where the views have dropped; is it rewarded which brings me back to know about your customers and rate is low, check any links that you time to update the photos, freshen the humble vehicle view. Unlike a their buying history, takes the black are displaying to ensure that they up the comments and review the billboard or 30 second TVC this little magic out of the web. Rather than are adding true value back to the pricing? If you are using Trade Me count provides instant gratification. being in the 80% that hit and hope, viewer. You would be surprised at the Motors, leverage the model variant We provide this information to our optimising a few key elements of number of links that are either broken field for promotions. customers, either in an easy to read online strategy in reaction to what (as the web address has changed over Remember that the web with its table, ready-made graph, or for the the market is reflecting back has to time), or lead to very non- descript saved searches and watch lists, turns more advanced, a complete Excel be a winner. This has always been web pages with no focus. These all prospective customers into train spreadsheet to allow data importing one key area where I am surprised links generally open a new browser spotters and you cannot fool them! You have to be transparent with your customers and prospects. With older listings it is best to openly state that the vehicle must go and that the price has been adjusted to reflect this. By being on the front foot it helps cut down on those last minute and unwanted price negotiations. If online customers are turned away by your actions they will never tell you. In summary it all does start with the number of eyes on listings and this information is easy to obtain. Tracking and monitoring this activity is relatively low stress and the gains made around optimising an online sales approach will lead to increased activity in your lead pipeline. Nothing internet based needs to be hard.

www.autofile.co.nz | 13 Regional Roundup: Taranaki By Sandy Myhre In many ways New Plymouth is In fact thanks to the oil industry, farming and the weather. an out-on-a-limb city no matter Taranaki’s annual salary incomes “Waipukurau is dominated by how much TV One’s weatherman are the third-highest in the country sheep and beef farming and although and part-time stock car driver, behind Auckland and Wellington - the payouts might be strong at the Jim Hickey, sings the praises of meaning the district punches well moment there’s not a lot of rain. A his hometown. It’s a destination above most other places in New drought in the past couple of years as opposed to a drive-through so Zealand in terms of income-per- saw farmers sell off stock and farming Photo reproduced with permission Taranaki from the Daily Mail, unless you’ve got cause to travel capita. What’s more, Taranaki’s rural incomes dropped considerably. Russell Dempster the long way around the region’s sector is dominated by dairy farms “Taranaki doesn’t have that eponymous mountain – and it’s which means the healthy Fonterra problem because it rains a lot,” he surely sets The ’Naki apart from other worth doing from a purely tourist pay-outs over the past year have says candidly. regions like Otago and Southland perspective - you’re not likely to offered the region’s motor vehicle He, like many in Taranaki, where sales figures suggest the big go there on a trip from Auckland industry cause for optimism. suggests dairy farmers and the oil Aussie six and eight cylinder cars are to Wellington. industry give the motor industry being replaced by SUVs. Economically speaking Taranaki Russell Dempster of Energy City Ford stability. New vehicle sales from his “People seem to want to come sits in semi-isolation to the rest of is in a good position to compare one dealership are currently strong and back to buying bigger cars (in the country too. It is topped up, to district to another. He recently moved as new models come on stream Taranaki) and the rural community is use an obvious pun, by thriving oil back to his home town to take up the (Territory, Ranger and Focus) he Holden-focused,” he says. and dairy industries and because of position as dealer principal in New anticipates even more activity. This that the region has been somewhat Plymouth after a stint running the robustness, however, doesn’t extend James Crighton, CEO of Tasman cushioned by the impact of a Ford dealership in Waipukurau. to used vehicle sales and Russell Toyota in New Plymouth and recession that has knocked other “The major difference Dempster thinks the quiet times on Hawera, has a slightly different areas about over the past year or so. between the two places is the second hand lot at the moment viewpoint of the retail vehicle can purely be put down to the market. He’s experiencing conquest vagaries of the weather. business with SUVs and the used “We’ve had a lot of rain over the car department at his dealerships past month but when we had a are having a good year, the best, he couple of fine days we noticed an says, since 2007 and it’s not entirely increase in the number of people on price-driven. send an email to the yard.” “Buyers now want later model Whatever the weather, Fieldays vehicles and we are still selling in the subscribe@autofi le.co.nz pricings have benefited motor 40s every month.” industry sales figures throughout the As for business in the service country and the subsequent return departments, again it depends on to get the latest issue to Taranaki is no exception. Light who is doing the talking. At Tasman of Autofi le commercial sales – utes and vans – Toyota service work comes in ‘fits are particularly beefy right now, and and starts’ says Crighton, while the dairy pay-outs have helped as Dempster at Energy City Ford says farmers get back to buying again. people are keeping their vehicles longer than in past years and Daryn Pennington of Autocity says those vehicles, of course, require FREE the enquiry level from farmers for regular service. Autocity’s service commercials has risen by around 20 department is currently busy with a percent over the past three months. noticeable increase in volume in the to your inbox He describes this increase in business past two months. twice per month as gradual rather than arriving in a However not all of the healthy rush but, having said that, he had enquiry levels and subsequent sales what he calls a ‘boomer month’ in in Taranaki can be placed at Fonterra’s June. In fact he’s looking for two door or that of the oil industry. Daryn more sales people. Pennington believes customers “We are struggling a bit with generally are well aware that prices the small sales team we’ve had for are likely to rise in the near future and the past couple of years and at the there may be issues with stock supply The voice of the auto industry moment things seem to be taking off.” – both of which have been given a He singles out Commodore as generous airing in the media. being particularly stalwart - which As for truck sales in an area

14 | www.autofile.co.nz Daryn Pennington James Crighton Grant Fowler dominated by oil industry carting community. Grant Fowler, owner through service work or break- about that and he’s hard to stop. He’s requirements, Garth Weir, managing of Grant Fowler Cars, says sales downs as tourists drive into town. almost as enthusiastic about the director and owner of Moller are ‘up and down and even slow’ Taranaki markets itself with the Porsche as he is about the region he Johnson, says business is going at the moment and believes the by-line ‘like no other’ and it’s not - has presided over as Mayor in recent well, operators and contractors malaise is general over the entire given the oil industry and a hulking times and as a long-serving MP and are purchasing and sales are up country, not just in Taranaki, that the conical-shaped mountain. But there’s Associate Minister of Transport in the 50 percent on last year. Mind you, Christchurch earthquake coupled another slightly more obscure reason Labour Government before that. last year he went for ten months with the numbers of people leaving why the region is singular. There His car-loving tendencies without being able to get the trucks New Zealand has affected his region would be few, if any, mayors of any are not a marketing ploy either. he wanted to sell. Now, however, too by generating a general lack of region or city in New Zealand who Harry Duynhovnen is a car the stock he was expecting out of confidence in the immediate future. have done up an ageing, vintage, man through and through and Japan last October has finally arrived “I’m certainly not seeing very Porsche and who occasionally take it his genuine gusto pales other and both Isuzu F Series and N Series much farming money because out on the race track for a strop. mayoral publicity attempts into trucks are ‘going out the door as fast they seem to be buying work stock, Get Harry Duynhoven talking the lameness category. as we can get them.’ four-wheel-drives and utes, not The reasons for the increase private cars.” in trucks sales and service are no In fact he suggests further that different from the car sector. But Taranaki’s isolation works against Taranaki, uniquely in New Zealand, used-car selling ion the internet age. Dealers talk... has specific oil carting requirements “Customers used to drive to New and the oil industry is busy at the Plymouth to view cars but now they but who's really listening? moment. Indeed, Garth Weir says can view and buy and swap online. there are ‘oil strikes everywhere’ - There is much easier access to a adding that dairy farmers have had wider variety of cars for sale thanks Ensure your voice gets heard on all the important issues. two good payouts and are starting to to TradeMe and other sites.” For over 90 years, MTA has represented the views of spend money. He believes the next few dealers amongst regulators and law-makers. Now, His $2 million dealership has a months will be tough but come more than ever, it's vital that the views of dealers are total of 29 staff. It was purpose-built the rugby in October (and the effectively represented, in all the right places. 18 months ago for the servicing of games in New Plymouth won’t trucks, in addition to the sales yard. directly benefit his business) and Join MTA. As a member you can be assured that your It’s the only truck retail dealership the onset of summer then attitudes interests are on the top of our agenda, each and every between New Plymouth and will lighten sufficient to, hopefully, day. Wanganui and very handily sited on generate more enthusiasm for For more information about how to join go to the main road at Hawera, something replacing the family car. Garth Weir is happy to capitalise on. www.mta.org.nz/join or call us on 04 385 8859. “The oil industry carts to the Taranaki will host three Rugby port by tanker and we can grab the World Cup games in September but breakdowns if they happen outside unlike dealers at the other end of the If nobody's speaking for you... our door! country, in Dunedin for example, few you can be sure no-one's listening either! “At the moment the service side in the car industry in New Plymouth is very good. We have 14 technicians expect any direct trickle-down effect and if I could get two more I would to boost actual sales. Energy City love to employ them.” Ford, though, has a Hertz Rental agency and Russell Dempster Used importers, however, don’t expects good business to be derived appear to be benefiting from either from the three weeks of RWC activity the oil industry or the farming and other dealers might benefit

www.autofile.co.nz | 15 news News in brief

Recall for new FJ Cruiser of Goodman Property Trust (GMT), out of a possible 1,000 for owner Toyota’s Top to Bottom campaign, which owns the industrial estate, satisfaction for 2-year-old vehicles, in which Marc Ellis drove a new FJ will complete the development Mercedes receiving 839. Cruiser from Cape Reinga to Bluff, by April 2012, – subject to council The survey found that was completed just in time for consents – at an estimated total satisfaction among owners of Toyota to announce a global recall project cost of $24.0 million two-year-old vehicles in Germany of the vehicle. The 10-year lease has a fixed had declined overall from 2010, The recall is a result of air bag annual review structure and with luxury exports Audi and BMW sensors being installed the wrong to-date 96 of the cruisers have been includes three rights of renewal of among those charting drops. way. In a release, Toyota said: retailed in New Zealand since going five years each. “[D]ue to the incorrect side on sale in February. Super Cheap is relocating from Rumour has it… airbag sensor polarity, the G-force its existing 7,800sqm facility at GMT’s Industry sources suggest that it’s threshold to detect a side impact $24 million distribution Westney Industry Park in Mangere. an ‘open secret’ that Mitsubishi will may be incorrectly set to the centre for Super Cheap be changing its representation in improper direction.” Automotive parts and equipment Germans prefer Volvo the Windy City. In the case of a collision this retailer, Super Cheap Auto (New Swedish automaker Volvo, Current Wellington dealer Rick could result in a delay in the Zealand) has committed to a acquired last year by China’s Armstrong is expected to relinquish deployment of the SRS side airbag new purpose built warehouse Geely Automotive, has topped the Mitsubishi franchise later this and curtain shield airbag. and office facility at an Otahuhu J.D. Power and Associates 2011 year, with sources suggesting a Toyota NZ’s Spencer Morris, industrial estate. Germany Vehicle Ownership replacement has already been lined General Manager, customer services, The 20,530 sqm development will Satisfaction Study. up in Ingham Motors. says that vehicle owners will be become the main distribution centre Perennial favourite Mercedes- Mitsubishi Motors NZ managing notified, with the service procedure for Super Cheap’s national operations. Benz were pipped for first place director Warren Brown declined to taking one hour to complete. Year- Goodman (NZ), the Manager after Volvo received 841 points comment on the matter. VEHICLES WANTED VFL acquires BUYING NOW FlexiLease miles motor group Toyota Nissan Mazda Honda VW Lexus Hyundai Kia Christchurch based Vehicle as a result FlexiLease stopped We are always looking to purchase Finance & Leasing (VFL) has leasing vehicles. NZ NEW CARS AND COMMERCIALS successfully acquired the Flexi VFL has been specialising in PAUL CURIN 0274 333 303 [email protected] Lease brand from the Receivers car & light commercial leasing of South Canterbury Finance nationwide since the late 1980’s, Limited (in receivership). and was founded by former Mitsubishi • Mercedes Benz • Honda Hyundai • Isuzu Utes FlexiLease was previously motor dealer, and current CEO, www.inghamdriven.com SsangYong • Great Wall an important player in the SME Garry Donnithorne. Karl Briggs 0274 721 551 We purchase NZ new cars & commercials. lease market, before South VFL say that FlexiLease [email protected] All makes & models. Anywhere in NZ. Canterbury Finance decided retains a loyal following and a that the competitive vehicle strong customer base. leasing industry was not “core Says Donnithorne, “This move business” for the SCF Group. will once again afford SME’s a A notice at the time said that personalised leasing solution the Board had instead decided with the high level of service the Group should “concentrate and experience they have on consumer, rural, business, come to expect from the Flexi plant and equipment and Lease brand over the past two property sector lending”, and decades.”

16 | www.autofile.co.nz new cars

Nissan will be showing off the new Juke later this month. Part SUV, part sports car, the Juke provides an alternative to the conventional hatchback says Nissan New Zealand brand manager Paul Sherley. “The Juke was previewed at the Nissan/Datsun festival NIZFEST at Hampton Downs last November, but CRC Speedshow represents the first time we’ve shown this new model to a wider audience.” Overseas the Juke features a New Nissan Juke to feature at Speedshow 1.6-litre Intercooled Turbocharged Direct-Injection Inline Four engine with 188 hp, and is wherever they go. Expect an able to jump out of the many slow A Nissan UK spokesperson available in either front-wheel unfamiliar looking car to start corners and the performance was vowed the feat would be completed or all-wheel-drive, with a choice becoming very familiar indeed.” very consistent from the bottom at a later date. between a six-speed manual Also on display at the to the top since the electric motor “The fact it can travel at speeds gearbox or a CVT (Continuously speedshow will be the Nissan Leaf, wasn’t affected by the high altitude up to 90mph backwards is too good Variable Transmission) on front- which goes on sale later this year. near the summit like the gasoline an opportunity not to exploit. drive units, while the CVT is Nissan recently completed powered cars.” “Unlike petrol-powered cars, standard on AWD models. the famous Pike Hill Climb in And at the Goodwood Hill climb in which reverse gear allows only The Juke has been selling well the Leaf, with three bars out festival in England, Nissan planned low speeds, the Leaf has an electric overseas, and generally reviewing of 12 remaining after the car to break the local record for the powertrain that, theoretically, well too, with one UK reviewer travelled up the 19.99km, 56 turns, fastest car ever to drive up the hill enables it to be driven backwards as writing, “A plague of Jukes is about 1,439-metre climb. backwards, at 145 km/h (90mph). fast as it can go forwards.” to descend on the landscape, Driver Chad Hord praised the However officials disallowed it, CRC Speedshow runs Saturday devouring young mums and their vehicle,“With the instant torque saying it was unsafe due to a lack and Sunday 23-24 July at the ASB offspring and raising eyebrows from the electric motor we were of testing. Showgrounds in Auckland. BMW’s $1.7 billion vision arriving BMW Vision EfficientDynamics indicator as to what motorists can goes on show this weekend at expect in years to come.” Auckland Museum. The vehicle was designed BMW say the vehicle is ‘an in Munich and hand-built interpretation of future motoring,’ throughout 2008/09. This is the with Managing Director of BMW only VisionED show car in the world Group NZ, Mark Gilbert, saying, and represents an investment 2013, to be known as the i8. The the rear axle enables a maximum “The VisionED is of particular of approximately 1 billion Euro combination of a three-cylinder power output for the system of significance to BMW as it (NZ$1.7 billion). turbo-diesel with a hybrid 241kW, achieving 0–100km/h in 4.8 represents the future of personal According to BMW the Vision synchronous motor at the front seconds, with fuel efficiency of 3.76 mobility and is a significant ED will go into production in axle and a full hybrid engine at litres per 100 kilometres. Sporty Swift S concept Swift has been showing its Swift S powered by a 1.6-litre VVT engine and concept at the motor shows, at Geneva is significantly lower and wider than the in March and more recently current production Swift. at the Australian The show model featured updated International Motor fascias, new blackened lights, a more Show in Melbourne generous rear wing and sits on 15-spoke this month. 18-inch rims, covered by 225/45 R18 tires. Suziki were light on Inside the cabin were sports buckets details, except that it’s seats and some carbon fibre trim.

www.autofile.co.nz | 17 disputes

The Case: Dealer in Auckland, The purchaser received the vehicle with a number of faults, but the vehicle in Christchurch dealer wanted her to transport the vehicle to Auckland at her cost Background as “Grade 1: medium to low risk purchaser sent the trader a The Decision: On 11 November 2010 Mrs Yusoff, of unplanned maintenance and copy of the second Honda The Tribunal considered that the who lives in Christchurch, purchased repair”, listing a number of faults report with a letter rejecting cost of repairs amounted to a failure sight unseen a 2004 Honda Odyssey including excess movement the vehicle and referring to of substantial character for $17,900 from Vital IP Limited through engine mounts. the faults, including oil leaking At: the Motor Vehicle Disputes trading as Metro Automotive. The On 8 December 2010 the from the drive shaft, a leaking Tribunal, Auckland purchaser has rejected the vehicle purchaser took the vehicle to power steering pump and the because she says that the vehicle has Honda Cars Christchurch who broken engine and transmission serious faults. inspected the vehicle and gave the mountings as serious problems. laundry list of faults that the Second The trader who operates out purchaser a handwritten estimate The trader, by its Sales Manager Honda Report has shown it to have. of Auckland says that it is willing of the cost to repair the various Mr Amyn Tharani says that the AA The transmission fault along with to remedy the vehicle’s faults faults they found as well as the report did not find any fault with other identified faults will require over but that the purchaser has not faults identified by the AA. The the vehicle’s transmission but rated $4,000 or 22% of the cost price of the returned the vehicle to the trader total estimate was $3,114.50. the vehicle as Grade 1. vehicle to remedy. For that reason in Auckland to enable it to do so The purchaser sent the trader a Mr Tharani says the trader the vehicle’s failures are of substantial and does not consider it should copy and received a reply, saying doubted the credibility of the character; accordingly the purchaser bear the cost of transporting the that it seemed she was after purchaser’s claims because she is entitled to reject the vehicle. vehicle back to Auckland. making a used car in brand new would not tell them the name of the The Tribunal considers that the condition and that all the items mechanic at Honda Cars Christchurch vehicle cannot be returned to the The Case were “ware and tare (sic) items.” who wrote the first Honda report. trader without significant cost to the The purchaser bought the vehicle The trader informed the Mr Tharani says the Second purchaser. The trader was therefore after being assured by the trader’s purchaser in that email that it Honda Report does not state ordered at its expense to collect the salesman that the vehicle’s engine had no obligation to spend any how much oil is leaking from the vehicle, and to refund the purchase was in excellent condition. money on the vehicle because it engine, which part of the power price of $17,990 immediately. The trader transported the met all NZ safety and compliance steering pump is leaking, whether vehicle to Christchurch and it was standards but that if the purchaser the front timing cover oil seal is Bruce Dell’s comment supplied to the purchaser on 15 returned the vehicle to the trader it leaking or whether oil is coming The vehicle was rejected because November 2010. was “happy to look at the vehicle.” from the power steering leak (this of purported serious faults. The When the purchaser received The purchaser filed a complaint is acknowledged in the Second Dealer was in Auckland and the vehicle it had a cracked with the Tribunal on 13 December Honda Report). The trader (in spite seemingly offered to remedy the windscreen which has since been 2010, and there were numerous of the colour photographs taken faults. The vehicle was not returned replaced, the left side rear vision exchanges of cross correspondence by Honda which were produced and the Tribunal considered the mirror would not retract and the between the purchaser and to the Tribunal) does not accept acceptable quality of the provisions bottom cover of the mirror was the trader in which the former that the engine and transmission of The Consumer Guarantees missing, the internal roof light sought to get the latter to accept mountings are broken. Act and the case of Stephens v would not turn off, a wheel locking responsibility to fix the vehicle’s Mr Amin Tharani says that Chevron Motor Court Limited in nut was missing and the battery faults and the trader denied any the trader is willing to repair any assessing that and if so, were those was flat. The trader arranged to responsibility to do so. faults and has mechanics able to failures of substantial character and replace the battery, the wheel Pursuant to its inquisitional do the work far cheaper, but is if so, was the Purchaser entitled to locking nut and ordered the jurisdiction, the Tribunal not prepared to pay to have the reject the vehicle? bottom cover for the rear vision requested the purchaser take vehicle transported. The Purchaser was in this case mirror however it told the Tribunal the vehicle back to Christchurch entitled to reject and had the that it did not repair the other Honda to have a comprehensive The decision purchase price refunded. The faults because it considered them written report prepared. The Tribunal considered whether Dealer had to uplift the vehicle to be matters of “wear and tear.” A second report was prepared, the vehicle met the guarantee of from Christchurch. Bruce Dell Law – “problem solver” Within two weeks of receiving with photos, and the total cost of acceptable quality. The Tribunal It all seems rather harsh but the vehicle the purchaser had the doing the repairs, with GST on the is satisfiedauto thatfi leno arereasonable delighted to have again,Bruce itas is partalways of the best Autofi to find le teama advising our readers AA do a mechanical inspection of it. parts and labour was $4,034.79. purchaseron would the lessons have bought to be this learned fromresolution past Motor before Vehicle going Disputes to the Tribunal cases The report rated the vehicle On 7 February 2011 the vehicle knowingIf you require that it legalhad the advice give tribunal,Bruce a callif at allon possible.09 570 5036

Bruce Dell Law – “problem solver” . Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on past Motor bd Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036 law 18 | www.autofile.co.nz

. Problem bd solver law disputes

The Case: Lack of disclosure allows purchaser to The purchasers wished to reject the vehicle, saying they had been reject vehicle, despite repairs misled about its condition at the time of sale Background to the purchasers because he had After repairs were The Decision: On 31 October 2010 Wade been told that after the repairs the completed, they noticed an The tribunal agreed: despite repair Saunders and Kelly Murray bought engine was in better condition than additional strange noise. The work having been carried out, a Holden HSV GTS VX for $29,995 when the inspection was carried purchaser told the trader he consumers must be acquainted with the full facts when making a from Ian Humphrey Motors. out so he thought it was an accurate wanted to return the vehicle, the decision. The purchasers rejected the car reflection of the state of the car. trader said that there was nothing because of ongoing mechanical The purchasers bought the wrong with the car. At: the Motor Vehicle Disputes Tribunal, Palmerston North problems, and also allege they car on 31 October 2010, and then The purchasers noticed that were misled about the condition of experienced four problems with the this noise worsened over the sequentially – a consumer may not the car prior to purchasing. car in quick succession very soon Christmas break, and on 5 January require goods to be repaired and The trader’s position is that after purchase. 2011 the purchasers delivered a then reject those goods. the purchasers are not entitled to On 7 November 2010 the car letter formally rejecting the car. There is an exception – where reject the car because the various was returned to the trader with The purchasers arranged for B a consumer has elected to have historical problems have been a gearbox problem. They were & H to inspect the car and report goods repaired in circumstances remedied, and have offered to told that the gearbox had been to Robertson Holden. The report where they have not been provided remedy the most recent problem. overfilled with oil, it was drained itemised the earlier repair work, and with sufficient information by the He denied that the purchasers and rectified. it was at this point the purchasers supplier to enable the consumer to were misled about the condition On 12 November the purchasers became aware of the pre-purchase make an informed decision. of the car. were driving the car home from the engine repair work. The tribunal found that the trader’s premises and Mr Saunders The trader’s position (based on purchasers were misled about the The case noticed noises in what he thought advice from B & H) is that all that may condition of the car at the time of On 27 August 2010 the trader had an was the gearbox. The purchasers be required to remedy the latest sale, and thus concluded that the MTA pre-purchase inspection carried were advised by B & H that the problem is an adjustment of the purchasers were entitled to reject out by Tremaine Energy Centre. engine had “run two bearings” and lifters and the trader is prepared to the vehicle. The car was displayed on the that it had a cracked block. A letter have that done at the trader’s cost. The trader was ordered to refund yard for sale. It was taken for a test from B & H presented at the hearing The purchasers are not the deposit of $3,000, plus all drive by a prospective customer, indicates that this second failure persuaded that this is all that is principal payments made. without being accompanied by was related to and probably caused required, showing a mechanic’s a staff member. On the vehicle’s by the September 2010 repair. report and Robertson Holden’s Bruce Dell’s comment return an engine noise was noticed, Two weeks later on 4 December opinion that “the hydraulic lifters The Purchasers rejected the found to be due to a big end Mr Saunders noticed a noise coming are not adjustable on FLK911 and vehicle because of ongoing bearing failure. from the rear of the car. He asked if that is the cause of the noise will mechanical problems and advices Tremaine Energy Centre and a the trader to get the car looked at, need to be replaced.” concerning the condition prior to subcontractor, B & H Engine Services, but Mr Humphreys declined and the sale. The Dealer argued that carried out repair work at a cost of said that the car was fine. The finding there was no entitlement to reject $2,380.20. The invoice noted, “Motor The purchasers decided to have In respect of the first three failures, because the historical problems had to be checked after 1,000 Km” the vehicle checked by Robertson the trader did not dispute that those been remedied and some related to The car was then displayed Holden, and the problem was problems amounted to failures in fair wear and tear and there was no for sale on the trader’s yard. Mr diagnosed as failed pinion bearings. the guarantee of acceptable quality misleading conduct. Saunders’ evidence was that when The purchasers made a claim and the tribunal has no difficulty All of the usual arguments he and Ms Kelly inspected the on the mechanical protection concluding that they were. and considerations concerning car, he was shown the MTA pre- insurance they purchased at the It was unable to determine acceptable quality and failure purchase inspection. Neither he nor same time they bought the car. whether the fourth fault was of substantial character were Ms Kelly were told that significant The claim was initially declined; the of substantial character, but it considered. The Tribunal did find work had been carried out on the purchasers contacted the trader considered that the second fault, that there were some, perhaps, car since that date. who successfully negotiated on since repaired, did amount to a misleading advice and problems Humphrey advised the tribunal their behalf with the insurance substantial failure. with the vehicle that were that the MTA pre-purchase company, and offered to pay the However the remedies are not within the realms of the act and inspection document was provided excess of $200 on the claim. generally able to be exercised acceptable quality.

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www.autofile.co.nz | 19 industry statistics

Around the country Total New Cars 5365 2010: 5786  7.3% Car sales - June 2011 Total Used Cars 6570 2010: 7402  11.2%

Whangarei NEW: 107 2010: 68  57.4% Used: 102 2010: 140  27.1% Thames NEW: 50 2010: 54  7.4% Used: 2010: 45  % Auckland 43 4.4 NEW: 2245 2010: 2691  16.6% Used: 3237 2010: 3560  9.1% Tauranga NEW: 210 2010: 191  9.9% Used: 237 2010: 245  -3.3% Hamilton NEW: 446 2010: 332  34.3% Rotorua Used: 420 2010: 475  11.6% NEW: 26 2010: 64  59.4% Used: 75 2010: 91  17. 6 % New Plymouth NEW: 86 2010: 92  6.5% Used: 132 2010: 117  12.8% Gisborne NEW: 2010: 35  Wanganui 24 31.4%  NEW: 39 2010: 30  30.0% Used: 27 2010: 41 34.1% Used: 50 2010: 65  23.1% Napier NEW: 155 2010: 132  17.4% Palmerston North Used: 140 2010: 152  7.9 % NEW: 140 2010: 156  10.3% Used: 142 2010: 182  22.0% Masterton NEW: 31 2010: 43  27.9% Nelson Used: 32 2010: 39  17. 9 % NEW: 64 2010: 59  8.5%  Used: 104 2010: 148 29.7% Wellington NEW: 580 2010: 624  7.1% Westport Used: 586 2010: 654  10.4% NEW: 3 2010: 8  62.5%  Used: 8 2010: 9 11.1% Blenheim NEW: 33 2010: 41  19.5% Greymouth Used: 22 2010: 31  29.0% NEW: 11 2010: 9  22.2% Used: 20 2010: 30  33.3% Christchurch NEW: 837 2010: 887  5.6% Used: 830 2010: 961  13.6%

Timaru NEW: 29 2010: 43  32.6% Used: 59 2010: 84  29.8%

Oamaru NEW: 17 2010: 12  41.7% Used: 7 2010: 19  63.2%

Dunedin NEW: 141 2010: 132  6.8% Used: 214 2010: 240  10.8%

Invercargill NEW: 91 2010: 83  9.6% Used: 83 2010: 74  12.2%

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20 | www.autofile.co.nz sHIppInG sErvICEs to NeW ZeaLaNd aNd auStraLIa FroM JaPaN, ChINa aNd korea

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PIONEERS AND INNOVATORS TO THE USED VEHICLE IMPORT MARKET used import sales continued from page 6 Used dealer models 2012 Time to stockpile? affordability. You can’t change And regardless of the Used car importers are hoping last few weeks, and is hoping the the affordability, you can’t condition, he doesn’t believe that their stars will align later this year, situation will continue to improve. make somebody spend an extra the numbers are there either. as they look to bring in vehicles “I think buying will ease as the $4,000-5,000 to buy a car – they “From a local stock leading up to 31 December. Japanese summer moves through haven’t got the money, they purchasing point of view, Shipping companies may its cycle and we move towards haven’t got the finance, so there’s always going to be notify importers of cut off dates, September-October when the you’ve got to tailor the car to vehicles available, but you’ll but most dealers will be looking market starts to tail off a little bit the affordability.” see a return to the old days to have vehicles landed and over there. While domestic supply is where everyone was jumping complied well in advance of the “There should be better often pointed to, Macdonald on the phone first thing in the final date. opportunity for buying, based doesn’t see it as a serious morning, running around the One variable is whether on the trends of the last couple replacement for imports. car fairs and auctions. “The vehicles free up in the Japanese of years or so, but who can “Domestic supply really isn’t simple truth is that we don’t market. And signs that Japanese predict accurately what the much of an option, you end up sell enough new cars to supply new vehicle production is back on market will do. with everyone chasing their our used market place. We track much faster than was initially But in theory, there should be tails around trying to buy the haven’t in the past, we won’t predicted after the tsunami could a few more vehicles available, few cars locally that turn up in the future. So there’s always see higher turnover vehicles in the a combination of seasonal that are any good. going to be that shortage of used market. changes and also with any luck “I think there’s always new vehicles, which means Still, many dealers spoken to by a surplus of new vehicle spilling been this image within the again you’re either going to Autofile say they’re likely to stock- into the market place will help likes of rose-tinted media push people down the ladder pile only a few extra vehicles. those trades. people and new car writers in terms of quality to satisfy One said that the standard “It may be bit of too much and government officials that the affordability, because you model with stock-piling is the too late, most buyers I guess are somehow our fleet is comprised cannot raise the affordability in resultant glut of stock in the first looking to cease their buying of of immaculate low-mileage today’s climate.” three months of the year. double digit stock in October. cars driven carefully once on a Higher value cars have also And with dealers needing You certainly wouldn’t want Sunday to church. been touted as a potential to pay bills, inevitably the extra to be buying cars to land with “The reality is that we’re option, but as Macdonald says, vehicles are turned over almost any degree of surety to buy in hard on gear, we’re hard on the key to used imports is at cost. November, there needs to be cars. I would much rather stock providing affordable vehicles. Graeme Macdonald says that some sort of big shift in numbers a car fresh from Japan than “I don’t believe that the while buying in Japan is tough, by October to make any sort of I would one that has been profitability of higher value he’s seen glimmers of hope in the sizeable difference.” abused and beaten to death vehicles is necessarily any greater here in New Zealand. It doesn’t than lower value vehicles. Supplied by MTA Used Import Passenger Registrations take kiwis long to trash a car, “And is the market here for 2007 2008 2009 2010 2011 it’s a sad fact but it’s true.” them? We only have so many 12,000 While a vehicle in Japan can people who can buy higher be eight or nine years old and value vehicles. 10,000 still be in pristine showroom “I don’t think you’ll see this a condition, he says it only takes wholesale rush to higher value 8,000 two years on our roads before vehicles as an alternate market. it’s trashed. It may be that people will try 6,000 “From a financial perspective it, but I don’t see it as being a for us, it’s one of the key factors long term strategy. 4,000 that keeps our industry going, “The idea I guess if you really that we’re so hard on gear. want to be honest about it is, if 2,000 But the truth is that we’re the Minister refuses to change artificially hard on stuff, and his mind, is that those who are 0 that we should get a better run left in the industry are going to Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec out of our vehicles than we do.” have to hold their breath.” Get the competitive advantage

22 | www.autofile.co.nz used import sales

Used Passenger Vehicle Sales by Make - Jun 2011 Used Passenger Vehicle Sales by Model - Jun 2011

Jun ‘11 2011 Full 2011 Mkt Jun ‘11 2011 2011 Make Jun ‘11 Jun ‘10 +/- % Mkt Share Year share Make Model Jun ‘11 Jun ‘10 +/- % Mkt Full Mkt Share Year share Toyota 1823 1989 -8.3 27.7% 11504 28.5% Subaru Legacy 325 428 -24.1 4.9% 1998 5.0% Nissan 1042 1087 -4.1 15.9% 6249 15.5% Toyota Estima 278 243 14.4 4.2% 1359 3.4%

Mazda 851 952 -10.6 13.0% 4994 12.4% Toyota Corolla 276 351 -21.4 4.2% 1891 4.7%

Honda 682 903 -24.5 10.4% 4252 10.5% Mazda Atenza 262 252 4.0 4.0% 1501 3.7%

Subaru 533 687 -22.4 8.1% 3391 8.4% Toyota Vitz 247 238 3.8 3.8% 1471 3.6%

Mitsubishi 298 442 -32.6 4.5% 2111 5.2% Mazda Axela 162 130 24.6 2.5% 931 2.3%

Bmw 277 295 -6.1 4.2% 1720 4.3% Nissan Wingroad 158 97 62.9 2.4% 896 2.2%

Volkswagen 214 166 28.9 3.3% 1144 2.8% Bmw 3 Series 152 199 -23.6 2.3% 1033 2.6%

Suzuki 148 197 -24.9 2.3% 963 2.4% Honda Odyssey 146 166 -12.0 2.2% 850 2.1%

Ford 141 179 -21.2 2.1% 777 1.9% Mazda Demio 144 217 -33.6 2.2% 980 2.4%

Audi 91 92 -1.1 1.4% 513 1.3% Nissan Primera 141 208 -32.2 2.1% 918 2.3%

Mercedes-Benz 69 51 35.3 1.1% 399 1.0% Subaru Impreza 132 167 -21.0 2.0% 915 2.3%

Peugeot 54 35 54.3 0.8% 295 0.7% Honda Stream 130 201 -35.3 2.0% 741 1.8%

Chevrolet 44 44 0.0 0.7% 308 0.8% Honda Accord 124 167 -25.7 1.9% 728 1.8%

Volvo 42 27 55.6 0.6% 181 0.4% Volkswagen Golf 124 82 51.2 1.9% 624 1.5%

Chrysler 37 32 15.6 0.6% 171 0.4% Nissan Bluebird 121 124 -2.4 1.8% 633 1.6% Toyota Funcargo 110 75 46.7 1.7% 565 1.4% Jaguar 30 20 50.0 0.5% 151 0.4% Toyota Ipsum 109 73 49.3 1.7% 665 1.6% Land Rover 26 6 333.3 0.4% 94 0.2% Honda Fit 106 84 26.2 1.6% 580 1.4% Hyundai 25 48 -47.9 0.4% 202 0.5% Nissan March 102 65 56.9 1.6% 580 1.4% Mini 15 12 25.0 0.2% 79 0.2% Toyota Ist 93 100 -7.0 1.4% 618 1.5% Holden 13 9 44.4 0.2% 64 0.2% Suzuki Swift 89 121 -26.4 1.4% 569 1.4% Opel 13 17 -23.5 0.2% 85 0.2% Toyota Caldina 89 79 12.7 1.4% 504 1.3% Alfa Romeo 12 14 -14.3 0.2% 69 0.2% Toyota Altezza 87 132 -34.1 1.3% 619 1.5% Isuzu 8 11 -27.3 0.1% 56 0.1% Mazda Mpv 86 97 -11.3 1.3% 506 1.3% Lexus 8 5 60.0 0.1% 38 0.1% Honda Civic 81 153 -47.1 1.2% 631 1.6% Dodge 7 3 133.3 0.1% 35 0.1% Nissan Elgrand 71 61 16.4 1.1% 394 1.0% Jeep 7 10 -30.0 0.1% 62 0.2% Mitsubishi Lancer 70 128 -45.3 1.1% 597 1.5% Renault 7 9 -22.2 0.1% 28 0.1% Nissan Skyline 68 82 -17.1 1.0% 443 1.1% Fiat 6 2 200.0 0.1% 28 0.1% Toyota Rav4 64 75 -14.7 1.0% 345 0.9% Daihatsu 4 10 -60.0 0.1% 48 0.1% Nissan Tiida 60 96 -37.5 0.9% 362 0.9% Pontiac 4 2 100.0 0.1% 26 0.1% Mazda Premacy 58 44 31.8 0.9% 276 0.7%

Saab 4 10 -60.0 0.1% 30 0.1% Mazda Tribute 57 82 -30.5 0.9% 333 0.8%

Cadillac 3 4 -25.0 0.0% 28 0.1% Mitsubishi Pajero 54 48 12.5 0.8% 329 0.8%

Ferrari 3 0.0% 10 0.0% Mitsubishi Colt 49 79 -38.0 0.7% 370 0.9%

Kia 3 2 50.0 0.0% 18 0.0% Subaru Forester 49 64 -23.4 0.7% 297 0.7%

Porsche 3 1 200.0 0.0% 21 0.1% Toyota Platz 44 74 -40.5 0.7% 388 1.0%

Other 23 29 -20.7 0.4% 173 0.4% Other 2052 2320 -11.6 31.2% 12877 31.9%

Total 6570 7402 -11.2 100.0% 40317 100.0% Total 6570 7402 -11.2 100.0% 40317 100.0%

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www.autofile.co.nz | 23 new vehicle sales Toyota on the ropes – but not out

Hyundai took top place in the But with Toyota production in passenger market in June with Japan at 95% percent in June, and 609 units, 35 ahead of second- running at 100% in July, Prangnell placed Toyota. says they’re expecting to bounce Last month’s leader Holden back in August. was in third, only 10 units behind “It takes us about 3-5 weeks to Toyota, with 564. fill up our supply chain, so August we’ve got a lot of pre-sold units are 5-star European new car The passenger market as a we’re expecting to be back on still to enter the country.” assessment programme (NCAP). whole was down some 7.3 percent. track with stock available. Sheed says that prices were “All our BlueMotion models Toyota’s total of 574 was down “The key is to get the vehicles realigned as new models came have start-stop systems, a whopping 57 percent from the on the ground, our potential sale out, rather than being reduced. regenerative brakes, and extremely 1337 units in June last year. rate has been well above what “It’s not really bringing prices low fuel consumption down to Some of the explanation for that we could supply. We’ve just been down, it’s bringing in new models below-hybrid level, and they’re decline lies with rentals. Last June going hand to mouth until the at lower price points. The new obviously finding great favour.” the top 5 rental models accounted Japan situation has normalised, Passat starts from $47,000, which Sheed believes Volkwagen’s sales for 793 sales, while this month the which it has, and I’m just looking was up in the mid-50s. may have benefited somewhat from top 5 accounted for 349. forward to some stock arriving.” “Polo we realigned to $25,750 stock constraints elsewhere. The three top selling rental Hyundai New Zealand CEO back in February, so all these “There will be a bit of that, models last June were Toyota, Tom Ruddenklau is pleased with actions that we have put in place you’ve seen some of the mainline amounting to 619 units; this month the result, a first for Hyundai. are certainly delivering fruits now, mass-market competitors with the top selling Toyota rental was “That’s a great result, I would love which is good news.” Japanese-sourced vehicles the Highlander, with 51 units. to be there again.” He says while VW have a strong potentially lose a little bit of Toyota New Zealand’s general But he’s got no doubt that appeal to the private and SME volume, but I think that will manager Sales and Operations, Toyota will be back. buyer, they’re increasingly attracting correct itself very quickly, so Steve Prangnell, says that there “Toyota is a formidable fleet buyers, due to the safety and they’ll get back to normality. has been a change in buying competitor, they have had some efficiency of their vehicles. “Of more concern is just the level patterns, with rental companies supply issues and I have no doubt “Some of our growth is coming of the new car market, last month buying later, rather than solely due that they will return very strongly from the corporate arena, we deal was negative over the previous year, to stock difficulties. Christchurch to the market in the second half with Blue-chip corporates, and though the commercial, van and ute has also been a factor. of the year when they get stock. we’re definitely on their shopping markets are both growing, which is “At the start of the year, “We’ll enjoy our little day in the list now because we have very good news for us. because of the Christchurch sun while we’ve got it, and we’ll low total costs of ownership “I think you’ll see fairly flat situation, Budget and Avis had regroup and continue the charge.” (TCOs), and we are generally economy for the balance of the both scaled back their winter Top performing marque number 1 or number 2 for crash year, but you’ll see 2012 rebound season quite significantly, they in the market was no doubt safety, with all of our products quite a bit stronger.” thought that the impact was Volkswagen, its June total of 314 going to have quite a large effect more than double last year’s 164. Supplied by MTA on the number of inbound winter June 2011 sales included 100 New Passenger Registrations tourist, therefore they haven’t units retailed to EuropCar rentals. 2007 2008 2009 2010 2011 replaced as many cars.” General manager Dean Sheed 9,000 Looking to the general market, says it’s a terrific result, and a Prangnell says that it’s been a record for VW. 8,000 tough two months with supply “It adds up to our highest- severely constrained. ever market share of 6 percent, 7,000 “I’m expecting another tough and gives us a lift of 40 percent July for us, especially in terms of growth year-over-year.” 6,000 passenger cars, when it comes to Sheed believes buyers are Corolla, RAV4, Highlander, Prado, responding well to new pricing. 5,000 we’re very very lean on stock. “All the new models and new “In May we were 5th in the price points we’ve bought to the passenger segment, in June we’ve market place are being very well 4,000 bounced back to 2nd, by not too received, we’ve run out of many many cars, but I’m expecting a vehicles because we’re selling 3,000 tough July.” way above forecast levels, and Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

24 | www.autofile.co.nz new vehicle sales

New Passenger Vehicle Sales by Make - Jun 2011 New Passenger Vehicle Sales by Model - Jun 2011

Jun ‘11 2011 Full 2011 Mkt Jun ‘11 2011 2011 Make Jun ‘11 Jun ‘10 +/- % Mkt Share Year share Make Model Jun ‘11 Jun ‘10 +/- % Mkt Full Mkt Share Year share Hyundai 609 579 5.2 11.4% 3064 9.8% Holden Commodore 201 211 -4.7 3.7% 1306 4.2% Toyota 574 1337 -57.1 10.7% 4885 15.6% Suzuki Swift 196 212 -7.5 3.7% 1653 5.3% Holden 564 542 4.1 10.5% 3078 9.8% Hyundai i30 170 161 5.6 3.2% 1111 3.6% Ford 543 537 1.1 10.1% 2864 9.2% Hyundai Getz 152 99 53.5 2.8% 362 1.2% Suzuki 402 374 7.5 7.5% 2523 8.1% Holden Cruze 150 160 -6.3 2.8% 682 2.2% Mazda 375 383 -2.1 7.0% 2425 7.7% Holden Captiva 148 87 70.1 2.8% 733 2.3% Volkswagen 341 164 107.9 6.4% 1460 4.7% Ford Territory 135 60 125.0 2.5% 302 1.0% Mitsubishi 288 223 29.1 5.4% 1546 4.9% Ford Falcon 127 205 -38.0 2.4% 786 2.5% Nissan 276 277 -0.4 5.1% 1376 4.4% Toyota Corolla 127 219 -42.0 2.4% 1838 5.9% Kia 221 203 8.9 4.1% 1148 3.7% Toyota Camry 125 86 45.3 2.3% 437 1.4% Honda 189 174 8.6 3.5% 1497 4.8% Ford Mondeo 123 112 9.8 2.3% 670 2.1% Subaru 137 279 -50.9 2.6% 823 2.6% Mazda Mazda3 115 131 -12.2 2.1% 914 2.9% Audi 136 132 3.0 2.5% 733 2.3% Mazda Mazda6 105 133 -21.1 2.0% 664 2.1% Bmw 129 127 1.6 2.4% 667 2.1% Mitsubishi Outlander 105 123 -14.6 2.0% 528 1.7% Peugeot 78 69 13.0 1.5% 411 1.3% Volkswagen Passat 97 26 273.1 1.8% 263 0.8% Mercedes-Benz 76 66 15.2 1.4% 497 1.6% Nissan X-Trail 90 42 114.3 1.7% 308 1.0%

SsangYong 69 13 430.8 1.3% 208 0.7% Hyundai Santa Fe 87 116 -25.0 1.6% 514 1.6%

Skoda 55 27 103.7 1.0% 303 1.0% Toyota Yaris 85 95 -10.5 1.6% 731 2.3%

Jeep 42 32 31.3 0.8% 205 0.7% Ford Focus 81 88 -8.0 1.5% 506 1.6%

Land Rover 35 27 29.6 0.7% 180 0.6% Volkswagen Golf 80 76 5.3 1.5% 456 1.5%

Lexus 31 33 -6.1 0.6% 223 0.7% Volkswagen Polo 80 20 300.0 1.5% 318 1.0%

Dodge 30 32 -6.3 0.6% 145 0.5% Ford Fiesta 77 71 8.5 1.4% 594 1.9%

Mini 26 27 -3.7 0.5% 153 0.5% Kia Sportage 77 10 670.0 1.4% 347 1.1%

Volvo 25 15 66.7 0.5% 102 0.3% Toyota Highlander 75 181 -58.6 1.4% 486 1.6%

Chery 20 0.4% 72 0.2% Hyundai ix35 72 88 -18.2 1.3% 489 1.6%

Citroen 17 16 6.3 0.3% 106 0.3% Mitsubishi Asx 68 1.3% 340 1.1%

Porsche 15 11 36.4 0.3% 79 0.3% Suzuki SX4 68 57 19.3 1.3% 297 0.9%

Alfa Romeo 10 10 0.0 0.2% 71 0.2% Honda Jazz 66 70 -5.7 1.2% 558 1.8%

Factory Built 10 5 100.0 0.2% 104 0.3% Toyota Landcruiser 65 219 -70.3 1.2% 260 0.8%

Renault 9 1 800.0 0.2% 41 0.1% Mazda CX-7 63 50 26.0 1.2% 348 1.1%

Daihatsu 8 25 -68.0 0.1% 31 0.1% Toyota Rav4 62 421 -85.3 1.2% 599 1.9%

Fiat 6 7 -14.3 0.1% 42 0.1% Suzuki Grand Vitara 61 41 48.8 1.1% 183 0.6%

Jaguar 5 14 -64.3 0.1% 30 0.1% Hyundai i45 60 38 57.9 1.1% 352 1.1%

Geely 4 1 300.0 0.1% 37 0.1% Nissan Micra 52 27 92.6 1.0% 197 0.6%

Bentley 2 0.0% 6 0.0% Suzuki Kizashi 48 37 29.7 0.9% 233 0.7%

Chrysler 2 2 0.0 0.0% 19 0.1% Hyundai Elantra 46 4 1050.0 0.9% 71 0.2%

Aston Martin 1 3 -66.7 0.0% 21 0.1% Mazda Mazda2 46 69 -33.3 0.9% 365 1.2%

Chevrolet 1 1 0.0 0.0% 16 0.1% Nissan Qashqai 44 57 -22.8 0.8% 379 1.2%

Ferrari 1 1 0.0 0.0% 7 0.0% Kia Rio 42 54 -22.2 0.8% 174 0.6%

Other 3 17 -82.4 0.1% 93 0.3% Other 1694 1830 -7.4 31.6% 9937 31.8%

Total 5365 5786 -7.3 100.0% 31291 100.0% Total Total 5365 5786 -7.3 100.0% 31291 100.0%

www.autofile.co.nz | 25 commercial vehicle sales continued from page 1 Soft finish to Fieldays promotional activity wasn’t at other products as well. to the the same level as we’ve seen in “June was also our 18th second placed previous years, there wasn’t the consecutive improvement of Navarra, though Hilux sales level of incentive that we’ve seen monthly sales, year-on-year, so were down some 7 percent on last particularly on light commercials. we’re pretty happy with that.” year, while Navara was up 24.6 contractors working under the “But I think also there wasn’t Though the Amarok was percent from 256 in June 2010, to Fletchers structure are being paid the same imperative to be displayed as a show model last 319 last month. out around eight million dollars so distressed in the way that year at Mystery Creek, this was the Steve Prangnell, general a week. campaign period was priced first Fieldays selling the recently manager Sales and Operations, Dealer Principal at Cockram because of stock availability, there released Volkswagen utility. in a statement released, says Nissan Alistair Hazeldine says it’s just wasn’t the huge influx of stock General Manager Dean Sheed customers have been incredibly a strong market for commercials. bought in for Fieldays to move on says the event was a good understanding about supply “The commercial results that in a relatively short space.” opportunity to display models, issues in the past couple of we are getting, as well as being However he believes that the both commercial and passenger. months, and realise Toyota is very pleasing to see, I can tell slightly reduced sales could result “This year we had about 9 or quickly recovering from the you that they’re coming out of in stronger sales in the remaining 10 [Amarok] on the site, along problems caused by Japan’s Christchurch tradespeople, as months of the year. with passenger cars. earthquake and tsunami. opposed to the rural farmers. “If we look from a “Amarok has been on national “Our production situation is “Generally we enjoy success from manufacturing point of view we television for the last three or four improving rapidly, and Toyota both sectors, builders, plumbers are likely to see a stronger final months, so there’s not too many dealers are able to meet most electricians, and then some of the six months of the year just based people in the country that don’t customers’ expectations. We are low and high country farmers. on supply coming through again. know we’ve launched the utility, grateful to the loyalty people “At this stage the results we’re “And as those who have so Mystery Creek was just one are showing. getting are coming purely and been hardest hit by the Japan event along the way.” “To capture more than 30 directly out of the Christchurch shortfall, as they start to get stock Sheed says in terms of per cent of the commercial people, not out of the outlying areas. back, they will start to get very incentives they focused on an market in June, double the sales “The farmers are still buying, aggressive I expect in terms of accessory package. of the nearest competitor, was but I think they’re putting a lot of their pricing in order to recover “People don’t buy us because an exceptional result. Hilux was their high returns in commodities the market share they lost in the of big discounts, because typically by far and away the number back into the farms and paying last three months.” if you get big discounts it’s hiding one truck in the country again, some of the debt off, as opposed Harris says the BT has been something or trying to make up showing Kiwis’ love for this icon is to buying new vehicles. selling well, and there’s still stock for something, we don’t do that, as strong as ever.” “But definitely the to move with the new BT-50 we try to give really good value.” Looking to the regions, Christchurch construction – or launching in November. Volkswagen sold 44 Amarok Christchurch saw strong year-on- even deconstruction – industry, “We are on run-out with that in June, and have sold 211 since year growth in June, up some 37 they’re buying vehicles and it’s model now, and we will probably its February release, and average percent on last year. very pleasing to see. Plumbers, continue selling it through of around 42 units a month. This isn’t necessarily a surprise, drain layers, a lot of sectors, it’s August and September, and then Sheed says they can’t help but be with the media reporting that not a fleet of 30 sales, these are probably transition to the new satisfied with the numbers. the three and a half thousand all one-off sales.” model late October.” “We can’t physically But while some in the market get anymore, we’re supply New Commercial Sales - 2010-2011 had lower sales than June last constrained. Our plant in year, others – notably Nissan, Argentina is at maximum capacity 2500 2010 Mitsubishi, and Volkswagen – saw supplying the markets that have 2011 significant growth. launched it. 2000 Mitsubishi Motors New “So we’re comfortable, we’ve got Zealand, with sales of 252 units demand in excess of supply, but it in June, were up 24% on last year. will be that way through to next 1500 Managing Director Warren Brown year anyway. We just can’t physically says they’re very happy with the get anymore, so it’s a bit of an 1000 200 Tritons sold. interesting situation to be in.” “We had a 27 increase on Despite potential stock woes, June 2010 across car and light Toyota remained clear leader in 500 commercials so were very pleased, the light commercial market, with and we had a good response to 30.4 percent of total sales. The 0 our Fieldays offer on Triton, as Hilux was the top selling model in Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec well as good response to all of our New Zealand, with 500, compared

26 | www.autofile.co.nz commercial vehicle sales

New Commercial Vehicle Sales by Make - Jun 2011 New Commercial Vehicle Sales by Model - Jun 2011

Make Jun ‘11 Jun ‘10 +/- % Jun ‘11 2011 2011 Mkt 2011 Mkt Share Full Year share Make Model Jun ‘11 Jun ‘10 +/- % Jun ‘11 Full 2011 Mkt Mkt Share Year share Toyota 696 771 -9.7 30.4% 3179 29.7% Toyota Hilux 500 539 -7.2 21.9% 2227 20.8% Ford 332 351 -5.4 14.5% 1482 13.8% Nissan Navara 319 256 24.6 13.9% 1388 12.9% Nissan 329 261 26.1 14.4% 1450 13.5% Ford Ranger 217 250 -13.2 9.5% 1126 10.5% Mitsubishi 252 203 24.1 11.0% 960 9.0% Mitsubishi Triton 200 166 20.5 8.7% 679 6.3% Holden 120 192 -37.5 5.2% 679 6.3% Toyota Hiace 172 195 -11.8 7.5% 853 8.0% Mazda 92 132 -30.3 4.0% 491 4.6% Ford Transit 111 84 32.1 4.9% 309 2.9% Volkswagen 90 12 650.0 3.9% 409 3.8% Holden Colorado 105 175 -40.0 4.6% 573 5.3% Isuzu 56 46 21.7 2.4% 323 3.0% Mazda Bt-50 91 108 -15.7 4.0% 471 4.4% Hyundai 54 29 86.2 2.4% 348 3.2% Hyundai H1 52 28 85.7 2.3% 340 3.2% Volvo 48 6 700.0 2.1% 97 0.9% Mitsubishi L300 52 36 44.4 2.3% 280 2.6% Mercedes-Benz 39 20 95.0 1.7% 240 2.2% Volkswagen Amarok 44 1.9% 211 2.0% Mitsubishi Fuso 29 46 -37.0 1.3% 148 1.4% Volvo Fm 38 3 1166.7 1.7% 65 0.6% Great Wall 22 7 214.3 1.0% 151 1.4% Isuzu D-Max 26 12 116.7 1.1% 131 1.2% Scania 19 15 26.7 0.8% 109 1.0% Mercedes-Benz Sprinter 26 14 85.7 1.1% 182 1.7% Fiat 18 9 100.0 0.8% 77 0.7% Toyota Landcruiser 24 37 -35.1 1.0% 99 0.9% Hino 17 46 -63.0 0.7% 141 1.3% Great Wall V240 22 5 340.0 1.0% 150 1.4% Kenworth 11 4 175.0 0.5% 51 0.5% Volkswagen T5 20 4 400.0 0.9% 87 0.8% Alexander Dennis 10 0.4% 10 0.1% Fiat Ducato 18 9 100.0 0.8% 77 0.7% Suzuki 10 20 -50.0 0.4% 44 0.4% Isuzu N Series 17 16 6.3 0.7% 76 0.7% Other 43 48 -10.4 1.9% 332 3.1% Other 234 283 -17.3 10.2% 1397 13.0% Total 2287 2218 3.1 100.0% 10721 100.0% Total 2287 2218 3.1 100.0% 10721 100.0%

New and used commercial sales by region - Jun 2011 Used Commercial Vehicle Sales by Make - Jun 2011 NEW USED Make Jun ‘11 Jun ‘10 +/- % Jun ‘11 2011 2011 Mkt Jun ‘11 Jun ‘10 +/- % Jun ‘11 Jun ‘10 +/- % Mkt Share Full Year share Whangarei 71 77 -7.8% 4 1 300.0% Nissan 79 83 -4.8 35.4% 497 36.3%

Auckland 704 677 4.0% 100 96 4.2% Toyota 66 57 15.8 29.6% 368 26.8%

Hamilton 254 233 9.0% 17 20 -15.0% Mazda 26 12 116.7 11.7% 139 10.1% Thames 27 40 -32.5% 2 Isuzu 19 19 0.0 8.5% 99 7.2% Tauranga 90 103 -12.6% 8 11 -27.3% Ford 6 4 50.0 2.7% 43 3.1% Rotorua 56 36 55.6% 8 10 -20.0% Hino 5 3 66.7 2.2% 22 1.6% Gisborne 35 28 25.0% 1 Chevrolet 3 6 -50.0 1.3% 44 3.2% Napier 88 84 4.8% 5 5 0.0% Other 19 23 -17.4 8.5% 159 11.6% New Plymouth 57 57 0.0% 2 5 -60.0% Total 223 207 7.7 100.0% 1371 100.0% Wanganui 21 21 0.0% 2 Palmerston North 78 104 -25.0% 6 4 50.0% Used Commercial Vehicle Sales by Model - Jun 2011 Masterton 25 30 -16.7% 1 4 -75.0% 2011 Wellington 154 160 -3.8% 15 8 87.5% Make Model Jun ‘11 Jun ‘10 +/- % Jun ‘11 Full 2011 Mkt Mkt Share Year share Nelson 49 58 -15.5% 1 6 -83.3% Nissan Caravan 39 34 14.7 17.5% 224 16.3% Blenheim 28 29 -3.4% 1 3 -66.7% Toyota Hiace 35 31 12.9 15.7% 220 16.0% Greymouth 22 18 22.2% 2 Nissan Vanette 26 37 -29.7 11.7% 210 15.3% Wesport 7 8 -12.5% Mazda Bongo 20 11 81.8 9.0% 105 7.7% Christchurch 277 202 37.1% 36 17 111.8% Timaru 44 32 37.5% 8 1 700.0% Isuzu Elf 17 16 6.3 7.6% 75 5.5% Oamaru 14 16 -12.5% 2 Nissan Atlas 11 8 37.5 4.9% 47 3.4% Dunedin 112 129 -13.2% 6 8 -25.0% Toyota Townace 9 4 125.0 4.0% 36 2.6% Invercargil 74 76 -2.6% 2 2 0.0% Other 66 66 0.0 29.6% 454 33.1% NZ TOTAL 2287 2218 3.1% 223 207 7.7% Total 223 207 7.7 100.0% 1371 100.0%

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