VOLUME 7 ISSUE 10 NOVEMBER 2016
Confidence for the Road Ahead
143,000 prediction for Imports 2016 new vehicle market regaining pace he new vehicle market isn’t ales records for new vehicles were president John Manley is suggesting a the only one that gets to cel- smashed in October, and it is now figure of 138,307 units. Tebrate, with the used import Slooking like a certainty that will But he suggests it could go higher. trade finally building momentum happen for the overall year as well. “Given the market was up 14% last after a slow start to the year. The total new market hit 14,709 month there is a reasonable chance we After two months of 8% growth, units, against 13,983 in July 1984. Not could crack 140,000,” Manley explains. used import registrations jumped only is it the highest month on record, 14%, to 12,709 units, while used but it is also the first time sales have commercials were up 32.3% to 974 exceeded 14,000. units. The market is already at 121,974 units Passenger car imports are track- for the year, and after the market broke the ing just ahead of last year, up 4% to 130,000 mark for the first time in 2015, it 123,588; while commercial imports looks like it could break the 140,000 unit are up 18% for the year to 8631 barrier - and not just by a little. David Crawford John Manley Craig Pomare units. We spoke to a number of industry Ford New Zealand managing direc- figures who believe the market for new tor Simon Rutherford is confident of a erations and Motor Industry Association vehicles will hit 143,000 combined and higher figure. chief executive David Crawford sug- commercial units - nearly 9000 ahead “Yes - we would certainly agree and gesting the same total to AutoTalk. of last year. are watching the industry closely, and What is pushing the market so hard? Looking purely at the next two are currently assuming 143,000,” Ru- “The domestic economy is very posi- months sticking with last years sales, therford says. tive, particularly Auckland (which makes plus the 8% gain we have seen overall And the consensus seems to be that up in excess of 40% of NZ total) and this year, Nissan New Zealand managing figure, with both Toyota New Zealand Christchurch,” Manley says. “Construc- director and Motor Industry Association general manager sales and dealer op- tion and Tourism are flying. “Also with the dramatic increase in INSIDE property values homeowners (who are NZTA in trade plate review 3 also more likely to be in the new vehi- Immigration changes mean trouble 4 cle buyer demographic) have greatly Thompson to lead Smallbone Timaru 8 increased equity, and therefore greater VINZ boss Shaw(n) 10 3 10 confidence, and where necessary Continued on page 6
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NZTA reviewing trade plate case AutoTalk Magazine and autotalk.co.nz are published by Auto Media Group he New Zealand threatened to charge him “Dealers do need to be 8/152 Quay Street, Limited. P.O. Box 10 50 10, Transport Agency has with obstruction when he able to properly evaluate the Auckland City, 1030. Ttold AutoTalk it - and took a picture of it. vehicle, to see how it drives, Ph. 09 309 2444. the Ministry of Transport - will Murray says the officer its performance, to enable MANAGING EDITOR review an appeal won by an checked the law and handed them to convey that infor- Richard Edwards Auckland trader last month back the plate the next day, mation to the customer,” 021 556 655 about the use of dealer plates. but refused to cancel the fine. Yorston explains. “They also [email protected] And that could mean He challenged the fine, need to be able to pick up changes to current rules. but two Justices of the any faults. PUBLISHER Dealer Arthur Murray, op- Peace found him guilty, so “I am glad the appeal has Vern Whitehead erator of Kelston’s Hatch- gone through and Arthur 021 831 153 back Autos, won the long- has won it as it sets a [email protected] running appeal over a case precedent.” in which he was stopped How the case will affect by Police while driving a NZTA and Police practice CHIEF REPORTER Robert Barry stock vehicle home. It was is yet to be decided, but it 022 0180 998 complied and displaying a he appealed. The case was has not gone unnoticed in [email protected] Warrant of Fitness, and was heard in three sessions, with Wellington. using a trade plate. Murray’s appeal successful. Spokesperson Andrew “I did explain I normally “Interestingly, the Police Knackstedt says the agency JOURNALIST take different vehicles home prosecutor said to the Judge, is reviewing the case to see Nerine Zoio most evenings and most at the first part of the appeal if any changes to the rules 021 240 2402 [email protected] of the company stock was hearing, that the Police wel- around trade plate use are unregistered,” Murray says. “I comed the opportunity to required. said a trade plate is transfer- have case law on the matter, “The Transport Agency SALES MANAGER rable registration.” as there was none previ- is currently reviewing the Dale Stevenson Murray says the officer ously,” Murray told AutoTalk. judgement in this case and 021 446 214 stated the plate could be used “I was going to give up actu- has no specific comment to [email protected] only by a dealer for obtaining ally, but the Judge and Police make on the decision at this compliance and testing and urged me to continue.” time, other than to confirm OPERATIONS only in business hours. Imported Motor Vehi- that the Transport Agency MANAGER “His apparent view was cle Association technical and the Ministry of Trans- Deborah Baxter going home was entirely manager Malcolm Yorston port will review the judge- 027 530 5016 private use and therefore a welcomed the win, and says ment and consider whether [email protected] breach of the rules and is- it fits with the IMVIA’s belief any changes to the rules sued an infringement notice. that ‘evaluation’, is an allow- governing the use of trade IDENTICAR Murray claims the officer able use of trade plates. plates are required.” MANAGER John Stephens 027 530 5023 Logistics leader celebrating 10 years [email protected] utohub seems so Waimauku, in north-west about out ubiquitous in the ve- Auckland, the brainchild of Autohub’s Auto Media Group Limited makes every endeavour to ensure information Ahicle logistics market, John Davies. Initially just history, and contained in this publication is accurate, that it is almost a surprise servicing the customers of the broader however we are not liable for any losses or issues resulting from its use. that this year it celebrates just one Japanese exporter, Shipping Annual subscription: tenth year in the trade. it now services multiple Logistics $84 + gst ($96.60) The company started its source markets and numer- and Compliance trade Printed by: Alpine Printers. operations in a small shed ous exporters. in our special feature, be- in the rural community of You can read more ginning page 27
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AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 3 NEWSTALK
Immigration changes mean trouble for automotive trade
leading automotive “Increasing the points re- 5%, or about 5000 people, work experience just to recruiter is calling foul quired to gain residence from over the next two years. get close to the required Aover changes to im- 140 to 160 will moderate the Phillips says that while the points. Eagle estimates migration rules - saying it is growth in applications in the 140 to 160 point rise may only 20% of the country’s going to make life incredibly Skilled Migrant category and seem small, most migrants diesel mechanics hold the difficult for the automotive enable us to lower the overall his company was recruiting qualification, as a comple- service trade. number of migrants gaining for the New Zealand market tion of an apprenticeship or Russell Phillips of Auto- residence,” Woodhouse said. were coming in on temporary trade certificate is seen as motive Employment NZ is- “Raising the points work visas and then enough there. sued a statement to industry will also prioritise access applying for residency associations and the media for higher-skilled SMC - meaning they only United Kingdom: this month explaining how migrants, ensuring we needed 100 points. Migrants for any techni- the changes will hit the trade. strike the right balance “The work visas cian role will need to have a The changes, announced between attracting were essential as in our City of Guilds or equivalent Russell Phillips mid-month by immigration skilled workers that al- industry the skills are qualification of part one, two minister Michael Woodhouse low companies to grow and always needed urgently to and three. were labeled as ‘small,’ and managing demand in a period supplement skills shortages as Eagle estimates while included raising the number of strong growth.” we have a very real and critical most have the first two, less of points required for the The move is part of a target shortage of skills,” Phillips says. than 20% hold the third. ‘Skilled Migrant’ category to reduce the number of That lower threshold is from 140 to 160. residency approvals by around now gone. And for techni- Philippines, Sri Lanka, cians the mountain to climb United States of America, to get enough points is a dif- Canada and Zimbabwe ficult one. For those in sales Eagle says Immigration NZ roles, it is even harder. will only accept NZ Qualifica- Phillips has supplied tions Authority pre-approved examples, working with academic qualifications, not immigration advisor Eagle trade qualifications from these Immigration, noting what is countries. To qualify, they will required for those in specific need to get an NZTA equiva- trades to meet the standard. lence for their qualification, adding cost and over a month South Africa: in waiting time. • Automotive technicians: To “Our tip is this will all but get over the line they will destroy the flow of can- need the most advanced didates in this sector as it trade certification, an N4 will become expensive for Certificate or similar. Eagle migrants with no guarantee estimates less than 10% of they qualify for residency.” South African technicians • Sales engineers and sales hold the qualifications and after service managers required - and will only be While these candidates able to secure residency if can come with huge trade they can get a job with an experience, without a diploma employer holding Immigra- or degree - often unrelated to tion NZ accredited em- their work - they are unlikely ployer status. to be able to secure residency. • Diesel mechanics: The *This is a summary of anal- examples note diesel ysis provided by Automotive mechanics out of South Employment New Zealand, Africa will now need an N3 and Auto Media Group sug- Certificate in a technical gests seeking professional ad- or engineering trade, plus vice before making any related a minimum of three years employment decisions.
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143,000 prediction for 2016 new vehicle market
Continued from page 1 investment in the building and con- “Good value,” he explains. “The real access to funding for vehicle replace- struction sectors.” price of new vehicles continues to im- ment.” So did Prangnell: prove. Why buy near new when you can Rutherford noted confidence in the “Consumer confidence, FX rates, buy new. And those who buy used are economy is strong: strong inbound tourism numbers and now also buying near new. The trickle- “The key factors we believe are the positive net migration, and an overall down effect seems to apply to vehicle overall balance and confidence in the positive economy.” purchases at present.” economy, comparatively low debt As one of a number of factors, Craw- We asked if the trend can continue to equity ratios and access to cheap ford notes new cars are just becoming into next year, and Crawford was posi- credit alongside strong commercial better value. tive. “The economic conditions in New Zealand should continue well into 2017,” he notes. “The market in 2017 is likely to be up 2-3% on 2016. “The unknown is that 2017 is also an election year and that may or may not alter people’s expecta- tions around the economy going forward.” Prangnell also thinks we will see a similar result next year. One of New Zealand’s largest “Under the current economic environment we think the mo- “Point of Sale” mentum will carry into 2017, and end up at a similar result as 2016.” Motor Vehicle Insurance providers So does Rutherford: “Yes – the momentum will continue but the rate of growth may not and we would currently assume there is potential for another record year.” Drive Away Manley also thinks we will see Insurance record numbers next year, with no suggestions of a decline, even a 1-2% growth would set another record. But he put a caveat on his comment. “(I) don’t really want to predict Top dealer commissions future growth as for the past two years the whole industry 7 Days a week 0800 111 801 Quote line has been completely wrong by under-calling rate of growth.” From outside the core trade, Weekly Payment Option Motor Trade Association chief executive Craig Pomare suggests the market could ‘easily’ push past Learner Licence Covered 145,000. “Can it carry on every year?” Pomare says maybe. “On current INSTANT QUOTE & COVER SERVICE 24/7 form we could be on track for an- other great year in 2017, however PH 0800 111 801 that is tempered by the threat of rising interest rates might which Or ONLINE QUOTES www.gocover.co.nz may ‘pop the bubble’ to some extent in 2017.” Drive Away with peace of mind CALL US TODAY
6 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz NEWSTALK
Kiwi Volvo cars to come from China
olvo New Zealand be as good as from any fully expects to begin other Volvo plant.” Vreceiving cars from China within a few years as Efficient production the Swedish brand begins “With three plants – and building in the land of its the designation of one car owner, Geely. line for each plant – Volvo Last week it announced creates an efficient pro- it will make its top-of-the- duction structure ensuring range S90 series cars based future capacity for growth,” on its Scalable Product Continued on page 15 Architecture (SPA) at its plant in Daqing, Heilongjiang province, in northern China. Existing and Coby Duggan The New Zealand Automotive Industry’s software provider of choice future 60 series medium- sized SPA-based cars will be built at its plant in Chengdu, Szechuan province, in West- ern China, while its planned 40 series smaller cars, based on its Compact Modular 35 Years Architecture (CMA), will be 3,000 Clients made at a plant that is cur- 10,000 Users can’t be wrong! rently being built in Luqiao, Automotive & Industry IT 350km south of Shanghai. Volvo NZ boss Coby Dug- gan told Auto Media that it ADP Autoline: The world’s most popular Dealer and Distributor was virtually a certainty we Management System from the world’s largest provider. will see Chinese-built Volvos AUTOMOTIVE MANAGEMENT IT in New Zealand, it is just the timeframe that is uncertain. And he says it is a very NZ’s most installed and fastest growing Dealer and Fleet Management positive move for distribution System with over 400 installations. of the brand here. DEALER MANAGEMENT IT “There are a number of positives, and it will cer- tainly improve lead times,” NZ’s acclaimed Workshop Management System runs 50% of Duggan explains, noting independent motor industry service and repair businesses. that with current supply AUTOMOTIVE SERVICE IT constraints out of Sweden they had a strong October, after only being able to de- TSI Group’s own computer hosting and cloud services division, and NZ’s liver one car in September. largest automotive industry specialist IT services company. “My suspicion is it will TOTAL BUSINESS IT be the new S90, and new generation XC60,” Duggan proudly exports Kiwi know-how and expertise to the world with clients in 24 countries. says. “I expect it will happen within the lifecycle of those two models.” Duggan has visited the Chengdu plant, and was very impressed with what it produces. Contact: Paul Wilkinson [email protected] 09 5832482 0274475513 “Quality out of China will
AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 7 NEWSTALK
Thompson to lead Smallbone
he head of South “Gail’s appointment is an the best person to drive the Volunteering Mid & South Island dealer group exciting development, and business in Timaru.” Canterbury board, so have TSmallbone is calling evidence that gender is no Thompson, who took first-hand knowledge of the the appointment of a woman barrier when it comes to ap- over the management of the pulse of our area, and aim to to lead one of its dealer- pointing the best person to a Smallbone Timaru operation bring this Mainland touch to ships indicative of chang- job, as she is by far and away in September, is similarly en- my new role.” ing dynamics within the In terms of aspira- industry. tions and dreams for her Its Holden franchise new appointment, Mrs in Timaru will become Thompson has set her the first dealership in sights high. the South Island Holden “Smallbone Holden network with a female in Ashburton is a multi- dealer principal. award-winning dealer- Group dealer principal ship, and I aim to repli- Roger Harper announced cate this success at the the appointment of Gail new Smallbone location Thompson to the posi- in Timaru, and rank as the tion. best Holden dealership “The role of the dealer in our class nationwide,” principal is to be respon- she says. sible for the day-to-day “I also want to engen- running of and, by exten- der a real link between the sion, the overall success of dealership and the South a dealership,” Harper says. Canterbury community, and build relationships thused about her new role. between different organisa- “It’s very empowering to tions and groups with Small- be given this chance within bone in Timaru.” the network, and is also a The appointment comes great opportunity to hope- as Smallbone Holden itself fully inspire more women undergoes a rejuvenation, to not only consider a role following similar lines to the in the automotive industry, Holden brand it represents in but aspire for the top job at both Timaru and Ashburton. a dealership,” she says. “Smallbone Holden took Thompson, who hails ownership of the Timaru originally from Balclutha, branch in May, and is enjoy- moved to Timaru in 2003 ing particular success. It’s to manage the local com- been an opportunity for munity newspaper. Since a refreshing change and then, and especially with a refocus on how we do a little more time available business, essentially reposi- as her two children have tioning the customer at the left home, she has been an centre of everything we do,” active member of the local Thompson says. community. “The sales transaction “I am passionate about is only the first part of an giving back to the commu- ongoing relationship as we nity, and was most recently strive to do everything we on boards and committees can in order to ensure a per- of Timaru Rose Festival, son becomes a Smallbone chairperson of Senior Citi- Holden customer for life.” zens and committee mem- Thomson says: “It’s an ber of the Timaru Squash exciting time to be part of Rackets club. Holden, and also the Small- “I currently sit on the bone dealership network.”
8 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz NEWSTALK
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VINZ boss Shaw(n) for Cancer Society
ehicle Inspection New dinator Sue Beuvink, and two other Zealand chief executive members of VINZ staff, Shaw lost his VGordon Shaw has raised beard, and his hair was shorn down to a more than $4485 through a number one cut at the VINZ head office Give-a-Little Campaign which in Mount Wellington. saw him shave the hair off his VINZ is taking up the challenge of head, as well as all his facial hair, Movember with some site and national for the Cancer Society. events planned, so in the lead-up to Assisted by Cancer Society this challenge, Shaw decided to get community fundraising co-or- involved by putting his head of hair on the line for charity as well.
“I wanted to be part of Mo- vember. However, there was one problem. I had a full head of hair and a full beard, so it all has to Morning Morning Port Calls Tokyo Car 1623 Carrera 1624 go in the lead-up to Movember,” Miracle 1622 Miracle 1701 Shaw says. Osaka 15 Nov 2 Dec 15 Dec 1 Jan “I have lost friends and family Nagoya 16 Nov 3 Dec 16 Dec 2 Jan to cancer, so I chose the Cancer Yokohama 17 Nov 4 Dec 17 Dec 3 Jan Society as the charity to raise funds for, and my target goal for Auckland 6 Dec 18 Dec 6 Jan 20 Jan the Give-A-Little shave campaign Wellington 10 Dec 27 Dec 10 Jan TBA was $2500 initially,” he says. Lyttelton 9 Dec 24 Dec 9 Jan TBA “I am truly grateful for all dona- Nelson 11 Dec 26 Dec 11 Jan TBA tions received, thanks to everyone who has donated to my cause.” PORT TO DOOR SERVICE INCLUDING: MPI Border inspection NZ Customs clearance Get a printed copy of Odometer certification Delivery Nationwide delivered to your desk each month! Digital Photography for Insurance prior sales in NZ You can have your own personal hard copy of the monthly 40-48 page magazine delivered to your desk. A monthly printed record of all the auto industry’s sales stats, www.armacup.com ‘hot’ news and views.
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10 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz NEWSTALK
Double-cab-ute nation – an economist's view
conomist Bernard Hickey opened but points out that it’s not all doom and migration shift is currently 30,000 per the October Road Transport gloom for the New Zealand economy. year, not 18,000 per year, so returning EForum conference in Mount He says New Zealand's best-selling Kiwis are adding to the need for more Maunganui with an engaging presen- vehicle is a Ford Ranger ute, new vehi- housing, in addition to new migrants. tation about New Zealand’s cles sales in September were the He feels that net permanent and economic outlook, and the signs second-highest ever, and he asks long-term immigration will not drop, which the road-transport indus- how the economy is changing? and that New Zealand will have a try should be wary of. “Why do we have 4.5% GDP debate about the effect on housing Hickey dubbed his presenta- growth with 0.2% inflation,” demand and prices. tion 'Double-cab-ute nation' to Hickey asks. He believes despite the heated Auck- highlight our changing econo- Bernard Hickey He says the answers lie in land housing market, the Reserve Bank my and motor-vehicle buying the amazing migration story, will cut the OCR again to 1.75%. trends in New Zealand, showing the the awfully amazing housing story, a Hickey says that immigration has conference delegates a picture of the stonkingly strong tourism story but the been a huge economic driver, more upcoming Mercedes-Benz X-Class surprisingly weak trade story. than 70,000 people came to NZ in the pickup to illustrate this point. year to September, and construction But Hickey pointed out that in the is also a major driver of the economy, last seven to eight years, global trade hence the advent of the double-cab- volume has slowed, and there was a ute nation. point in 2008 when the trade volume He says $20 billion of infrastructure from China slowed noticeably because build is projected for the Auckland that continent started making its own economy in the next three to four products, rather than importing them. years, necessitating the need for the He says slow public/private invest- transportation of building materials, ment and hardware turning into software concrete, steel, pipe and other goods. has also slowed global trade substantially. Hickey says in the last month, the Hickey says the growing middle- “We are seeing some strange things overall NZ housing market value hit class population in China and India is happening in global trade which the one trillion dollars, with half of that bringing more tourism to New Zealand. transport industry needs to be wary of,” belonging to Auckland. According to Hickey, more than 650 Hickey says. He cites the housing shortage at million people are joining the middle He says the rise of Donald Trump 40,000, with Auckland now building classes in India and China, and it's likely reflects that global trade is a political 10,000 houses a year, when it needs to they will not only send their kids to Eng- matter, and many people aren’t happy be 15,000, and we will need more than lish schools in NZ, it’s also likely they will about globalisation, and global trade 400,000 homes built in Auckland over seek property investments here to diver- has plateaued, resulting in the collapse the next three decades to cope with sify the risk of their investment portfolio. of container-freight rates. growth projections. He says NZ produces half the moz- Hickey warns transport operators Thanks to the now migrant-averse zarella cheese eaten in China by the to watch global trade trends carefully, UK and Australia, the NZ citizen net Continued on page 15
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AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 11 NEWSTALK
Securing the Internet of Things (including ‘driverless cars’)
he Internet of Things car, and want the smell of burns to the ground. this is exactly how wars of the (IoT) is really a very sim- toast wafting towards you as Narrowing our focus to future will be waged, attacking Tple concept. Eventually you arrive home. the automotive industry, the vital (connected) infrastructure everything from your toaster But it also potentially potential for malicious attacks to either deny service or cause to your car will all be connect- means someone could — in on driverless vehicles or the mayhem, and it could include ed to the internet. That’s very theory — remotely turn your traffic-control systems that anything from our water sup- handy if you are four minutes toaster on permanently. will coordinate them doesn’t ply to financial markets. from home in your driverless Well, at least until your house bear thinking about. In fact The more connected we all are, the more vulner- able we become, and as we CELEBRATING
25 YEARS connect every device to the internet we progressively increase the risk. Let’s just say that long before driverless vehicles are in the mainstream, we are going to have to really seri- ously deal with security.
My overactive imagination? Exhibit #1: Stuxnet Stuxnet was a relatively harmless Windows virus that emerged in early 2010. As is the case with each of the several viruses that are iden- tified every day, all the major antivirus companies soon had Stuxnet and its variants included in their databases, and it seemed to go away once we all updated our antivirus software. Except it didn’t go away, and Stuxnet was never a simple virus. It was a work of genius, specifically target- ing the PLC (i.e. brains) of specific ranges of Siemens machines that were, and still are, used on production lines around the world. In particular, it was tar- geted at the PLC used in a range of Siemens centrifug- es. High-speed centrifuges that Iran was using to enrich weapons-grade uranium in underground facilities. Infected machines could not be stopped once started, with the PLC repeatedly rais- ing and lowering the rotor Continued on page 42
12 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz NEWSTALK
It makes sense to go electric
s I write this at the ers and directors represent- they collect in the trucks is finding it’s much less – and end of September, we ing a range of stakeholders. to generate electricity that the electric truck is helping Ahave just seen a huge While this session was only is then used to power the to reduce its carbon foot- amount of activity around the first, it is clear that there trucks. print. New Zealand promoting is a significant diversity of Electric vehicle technol- Back in June I attended electric vehicles (EVs) to New experience which will prove ogy is perfect for rubbish the Wellington Electric Ve- Zealanders for International invaluable in providing ongo- trucks. The weight of the hicle Symposium, and heard Drive Electric Week. I attend- ing guidance and commen- batteries is no big deal, and Zane Fulljames from NZ Bus ed some of these events, and tary on the roll-out of EVs the regeneration they get tell how he started the 2016 I was delighted at the enthu- across New Zealand. from the constant year with a statement to his siasm I saw for what is a key It is really encour- stopping and starting management team that the part of the future of transport aging to note that is great for the bat- company would never buy in our country. many businesses and tery, and not so good another diesel bus. NZ Bus From the 89-year-old EV consumers are already for diesel consump- now has the Wrightspeed owner I spoke to in Thames, making the transition tion. technology deployment un- to the people stopping to to electric, because I live on the Kapiti derway, and I can’t wait to see check out the EV parked they can see that it Mike Underhill Coast, and have had those buses on our roads. on display outside my local makes sense from an an electric rubbish These are just some of grocery store, New Zealand- environmental perspective truck going past my front the great examples of busi- ers are curious about EVs. and from an operating cost door for the past three years, nesses taking a lead on EVs. Even on a drizzly day in perspective. The day after the first in New Zealand. It In the light vehicle fleet Auckland we still there are many had the biggest ever more – from large gathering of EVs in businesses such the country — with as Westpac and 60 electric cars on Air New Zea- display. Of the 1500 land through to people that came individual trades- to MOTAT that day, people and small nearly 100 of them businesses. were sufficiently curi- The Leadership ous to sign up for an Group has a role EV drive experience to play in promot- over the next two ing EV uptake, weeks. but equally many At the Matakana fleets, supported by Farmers market more those in the auto than 200 people industry who are chatted to a lo- supplying EVs, are cal EV owner, and just getting on with the demand for EV it and making the drives was so great commitment now the volunteers simply — and they will couldn’t keep up (or reap the benefits. get enough vehicles out!). that first meeting, Waste won’t be too much longer Mike Underhill is chief This level of interest was Management announced its before these are a more executive of the Energy repeated up and down our decision to move to electric common sight on New Efficiency and Conserva- country over two weekends. trucks as part of its commit- Zealand streets, and thank- tion Authority. This is the And I think it is just a taste of ment to sustainability. While fully they are a lot quieter first column in a series from things to come. there will be staged trials, than their diesel-powered members of the Govern- Earlier in September we with a fleet of 800 trucks predecessors. Kapiti District ment’s Electric Vehicles had our first Electric Vehicles and 200 light vehicles the Council’s analysis showed Leadership Group. Leadership Group meeting. potential is enormous. The the total cost of The group, appointed by the thing that really stood out for ownership was minister, comprises 10 cor- me about this story was its no more than porate and government chief ‘circular economy’ — using the diesel option, executives, general manag- methane from the rubbish and in practice it
AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 13 NEWSTALK
Audi bullish on We’re here to SQ7 prospects
help you provide udi New Zealand is allowing the use of a third expecting a rapid start electrically driven compres- Ato sales for the new S sor that can spin up from the best insurance version of its Q7 SUV, and it 5000rpm to 75000rpm in a has the marketing to match. quarter of a second, filling protection for your It is launching with a pro- the gap between the throttle motion to send a customer going down and the first of to California to fly in, and the two sequential traditional customers. briefly take the controls of, a turbos spinning up. jet fighter. The 48-volt system also “We are pretty bullish with allows for ‘electromechanical our expectations for SQ7,” Audi active roll stabilisation system,’ general manager Dean Sheed EAWS for short, that mostly told journalists at the launch eliminates body roll. A small of the vehicle yesterday. “We electric motor and planetary have the prize for the first 100 gearbox mounted in the customers, and no one gets to middle of a split sway bar can that level in this sector. force the suspension down on “We will be half way by either side of the car based on Simon Hamilton Stephen McMeeken Kerry Smith Christmas. That is how confi- anticipated cornering loads. 021 707 603 021 609 323 021 033 7028 dent we are.” EAWS comes as part of a The brand’s track re- $14,000 performance pack- cord suggests he is right. age including all-wheel steer- They have already moved ing and a sports differential. 320 units of the normal Q7, Audi says 30-40% of buyers with another 19 shifting last are ticking the option for this. Utilise our wealth month, no easy feat for a Less popular at 10% is a $131,000 SUV, let alone the $10,000 luxury package. of experience and $175,900 asked for the SQ7. The Q7 is already a It also has some significant luxurious beast, and the SQ7 industry expertise technology and numbers to carries this on. It also gets sell on. The new 4.0-litre tur- its driver assist technologies to drive your bodiesel V8 produces 320kW which include lane assist, and 900Nm of torque avail- adaptive cruise control, and a business forward. able from 1000rpm claims traffic-jam assistant. the title of the world’s most Outside it gets an ’S-line’ powerful diesel SUV. look with a ‘SingleFrame’ grille, The result is sports car like air inlets, trims, sporty rear performance, as the 2,330kg diffuser and 20-inch wheels, SQ7 accelerates from 0 to with options up to 22-inch. 100 km/h in 4.9 seconds For full drive impressions, while consuming just 7.2 visit Auto Media Group’s 0800 674 678 litres of fuel per 100km. content on Trade Me Mo- To do that the SQ7 has a tors. www.mainstreaminsurance.co.nz trick 48-volt electrical system,
14 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz NEWSTALK
Double-cab-ute nation Kiwi Volvo cars to come from China – an economist's view Continued from page 11 their deposit growth. middle class enjoying their most In the short term, Hickey favourite western food item, the advises transport operators to humble pizza. keep an eye on inflation fig- So what might spoil the ures, watch the Reserve Bank's party, Hickey asks? He says behaviour, watch migration there are many possibilities, figures, and more importantly, including higher inflation/ watch Winston Peters' behav- interest rates, a bank-driven iour in parliament in the run- lending slowdown, another up to the general election. global financial crisis, global “There’s a lot of grumpiness or local political turmoil, an in society at the moment, and Continued from page 7 anti-globalisation hit to trade, I think we are going to have says Håkan Samuelsson, president and chief executive. a migration collapse or a a big debate about migration The Luqiao plant will also make cars for Lynk & Co, a housing-market slump. and house prices, which Win- new car brand launched in October by Geely Auto. He says multiple control ston Peters will be feeding on Volvo currently operates two plants in Europe, in Swe- limits on debt to income for for his political gain,” Hickey den and Belgium. The Sweden plant in Gothenburg will property investors are coming says. continue to make 90 series and 60 series SPA cars, while into place as banks are now And he asks, “What will the its plant in Ghent, Belgium, will in future be a CMA-only starting to pull back on lend- Government do to stop Win- production facility making new 40-series cars. ing, and they are not passing ston Peters again becoming Volvo is also building a new plant in South Caro- on all the benefits of OCR to the king-maker in the next lina, in the US, that will make SPA-based vehicles for borrowers and savers, slowing election?" domestic US consumption and export. lending growth and increasing
Retail Development Manager Polaris Industries
For millions of people around the world, Polaris has become synonymous new heights of achievement. You will possess a high level of discipline with innovation, adventure and passion in both work and play. In NZ, Polaris and attention to detail for dealer follow-up, management reporting, and is the distributor for a range of off road and on road vehicles including a communication. Employment backgrounds sought include the skills held range of Ranger and RZR Side X Sides for both commercial and recreational by motor industry sales managers, dealer operations professionals in the purposes, Sportsman ATV’s, and Ace Single Seat ORV’s. Polaris is also the New distributor sector, and those possessing an in-depth knowledge of the retail Zealand distributor of legendary motorcycle brand Indian Motorcycle and motor industry and relevant sales and / or marketing processes. Victory Motorcycles. The Challenge and Reward The Role Joining a global brand in a retail development role will provide far more than The Retail Development Manager is a critical role within the Polaris mere employment; this will prove a dynamic role where you can fully utilise a organisation to stimulate and drive sustainable growth, sales results, and wide range of skills. dealer network development. Responsible for delivering sales results, and There is significant long term career potential and this should not be driving corporate vision and values throughout the dealer network, the overlooked. Remuneration is attractive and includes a company car as well as position involves broadening the scope and ability of the dealer network, regular and on-ongoing opportunity for both national and international travel. facilitating targeted marketing plans to grow retail activity and add value to the long-term brand value of Polaris. Most importantly, the Retail Closing Date and Application Process Development Manager will add serious value to the independently-owned The closing date for applications is November 20, 2016, all applications will businesses of the dealers. be forwarded to Polaris Industries unless otherwise requested. Email your resume to [email protected] or call Russell Phillips The Skills Sought on freephone from NZ landlines or mobiles on 0800 67 57 47. A full job Applicants should possess outstanding communication skills and be an description is also available. inspirational leader with the ability to motivate the dealer network to
AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 15 INDUSTRYTALK Crawford’s Case brought to you by By David Crawford, CEO of the CRAWFORD’S CASE Motor Industry Association of NZ (Inc). By David Crawford, CEO of the Motor Industry Association of NZ (Inc). MARAC, a division of Heartland Bank Limited. Woeful advice from NZTA
he Takata airbag recall is the MIA’s expectation that Advice from the NZTA that is the status of recalls prior to has been alive since importers of used vehicles inconsistent with NZ law importing a used vehicle. The Tlate 2013, but you will check for open recalls The MIA met with the IMVIA advise their members could be forgiven for think- on individual vehicles in the associate minister of trans- to close out recalls prior to ing that this was not the case source market and close port to communicate its very importation. They stop short if you watched the Fair Go these out with the manu- strong displeasure at legally of saying it is illegal to import programme in early October. facturer/distributor in that incorrect advice being pro- a vehicle without closing out For the presenters to say market prior to importation vided by the NZTA to Fair Go the recall, but agree on-sell- ‘gosh this is big why have to NZ. This clearly is not and in their media releases. ing the vehicle with the recall we not heard of it before’ happening! The NZTA advised owners of still open potentially runs only goes to show main The MIA’s views are it is vehicles who were con- foul of consumer law. stream media’s abject failure the importer of the vehicle cerned their passenger side The IMVIA also agree with to keep abreast of it. There that has the responsibility to airbag may be disabled to the MIA that it is unfair to has been plenty of media close out the recall. If they check with the manufacturer expect distributors to pay for discussion on the recall for fail to do this, and still import or an authorised dealer. ensuring a used imported some time! the vehicle then on-sell This advice completely vehicle complies with NZ law But Fair Go’s pitiful cries it, they are failing in their ignored clarifying who is when they did not import the pale into insignificance com- obligations under consumer responsible for ensuring the vehicles, and the option to pared to some of the woeful legislation by selling an item importation of used vehi- disable the airbag in Japan commentary and advice that is not fit and proper for cles comply with NZ law. It was a government policy not emanating from the NZTA. the purpose it is being sold. is not the responsibility of a policy of OEMs. NZ new vehicle distributors The MIA has invited, and Recalls Disabling of passenger side (other than for any used ve- the IMVIA has agreed, that The MIA’s two codes of airbags in the Japanese hicles they have imported). together we should set up practice apply, one for new domestic market. It is the responsibility of the a working group to address vehicles and one for used Due to vehicle owner’s person or company import- several matters. These are: imported vehicles. With concern and the slow rate ing the vehicle for re-sale in • Management of recalls respect to recalls for used at which Takata can supply NZ to put it right. for both new and used imports, the MIA position replacement airbag inflators, That the NZTA and as- vehicles, including legal is that the code applies to disabling of passenger side sociate minister of transport responsibilities on both used vehicles in NZ at the airbags in Japan was permit- keep pointing vehicle owners new and used importers. time the recall is notified plus ted by the Japanese Govern- to distributors defies logic • Methods to improve the three months to allow for ment from early 2015. This and a basic understanding close out rate of safety vehicles that might be on the was a Japanese Government of NZ law. In my opinion, recalls, including WoF/ water. There is no argument, domestic policy, not a policy the Government’s advice CoF ban flags for owners distributors will pay for the of manufacturers. has simply been obnoxiously who deliberately decline cost of parts and labour for If importers of used vehi- incompetent. to bring their vehicle in to a safety recall for new and cles were checking the status have a recall closed out, used imported vehicles once of open recalls at an indi- Working with the IMVIA and the recall is announced. vidual vehicle level prior to In all this, the MIA and • Legal responsibilities of importation, then it is unlikely IMVIA have liaised with each government and industry. Importation of Vehicles vehicles with the passenger other and have some shared Crawford’s Case repre- subject to an open recall side airbag disabled would views. Importers of used sents the views and opinions Once a recall is notified, it have made it to NZ. vehicles should be checking of the writer Drive away with finance from MARAC Provided by Heartland Bank Limited marac.co.nz MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply. heartland.co.nz
16 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz INDUSTRYTALK
Proudly sponsored by
SHAW THING & By Gordon Shaw – chief executive officer – Vehicle Inspection NZ Nissan Leaf 101 – user experience
s the CEO of a vehicle that you will inspection specialist I need to do to be EV/HYBRID Certified Nissan Leaf Signage Signature Mark Aam increasingly asked ready for your about the Nissan Leaf EV, new Leaf. and how second-hand Leafs Just a re- are dealt with in NZ. minder here that The purchase of a sec- once you have EV & Hybrid Vehicle Inspection Specialists ond-hand Nissan Leaf can an EV you need 0800GOVINZ VINZ.CO.NZ be a big decision, and there to change your are a few pitfalls that you driving style, might not be aware of. and the way Firstly, you need to think you plan your about who you will pur- journeys. chase your Leaf from. There But for now I EV & Hybrid are now a number of deal- will concentrate Vehicle Inspection Specialists 0800GOVINZ ers and import companies on what we VINZ.CO.NZ which specialise in EVs, and have learned, so the Nissan Leaf. A number you can con- of dealers now have sales sider this when staff that specialise in the you purchase A number of provid- work — your Leaf while selling of these as well. your Leaf. ers can sell you an NZ charging draws 12 to 15 My advice is to do your • Stereo and cell phone standard cable. We have amps, and most home homework and research, integration – like all two of them — one in power sockets are rated and to ask someone you imports they are fitted the car, and one for the at 10 amps. I suggest know for a referral. with Japanese domes- day car park for charg- that you get your elec- All second hand EVs tic stereos. We had our ing when the Leaf is not trician to upgrade any imported into New Zealand dealer fit an aftermarket being used. sockets you intend to go through the standard stereo with hands-free • Rapid charging — the use to a 16-amp version. entry certification process, cell phone integration. Leaf has a great range, • RUC — EVs are exempt and also the standard WoF • Tyres — we made a de- however, we suggest from Road User Charg- processes, before registra- cision to fit new tyres to that you join up with es. So the only ongoing tion into the NZ system. I the Leaf to replace the one of the charging regulatory fees for your would recommend that you originals. providers so that you Leaf are registration and always get an independent • User manuals — all the always have access to WoF. vehicle appraisal before you manuals and books are rapid chargers. Don’t It is great to see an in- purchase any vehicle. in Japanese. We found forget there are a creasing number of Nissan At VINZ we have recently links to the English ver- number of charge pints Leafs arriving in NZ. The added our first Nissan Leaf sions and printed them across NZ now that more that arrive and the to our fleet, and apart from where applicable. offer free charging as more demand which builds the above I want to let you • Charging cables — well. We joined up with up for EV’s will help with know some of the other when our Leaf arrived it Charge.Net, which gives the future price point and things that you need to had its original Japanese us access to its network will provide us with more have considered, as we have charging cable, with the of rapid chargers across choice. learned through experience Japanese socket. This NZ. that there are a few things needed to be changed. • Charging at home or at
See us first for... Specialists in JEVIC Authorised NZTA Border Pre Shipment Inspection Inspecons Agency 0800 GO VINZ
AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 17 MARKETINGTALK
Technology is always ‘moving the boundaries’
uman nature alters almost ubiquitous — ac- change, being pushed by both slowly over time, how- cess points. This has been a prospective customers and Hever, technology can technology-driven change. the prospective purchaser. change human behaviour rela- Technology has proved to You will see in the attached moved from loosely cou- tively quickly. As an example, be a real winner also for the sales funnel the change in pled TVCs and in-showroom look at the impact the stream- auto industry. Once mobile boundaries between what is activities to tightly coupled ing content providers have had access to the internet became considered as marketing reach above-the-line activities over the last two years. affordable, and smartphone and sales effectiveness. supported by targeted digital Lightbox and Netflix usage reached a tipping point Rather than just being campaigns. The prospective have been like a hot knife in terms of market penetra- academic it shows a true be- customer can now be tracked through butter, driving haviour through the full conversion the masses to exhibit a David Boshier change funnel, and the approach can totally different behaviour General manager of AutoPlay, which within be customised depending on when consuming enter- provides app-based lead-management our cus- the path of the journey. tainment-based content. tools for Kiwi dealerships. To find out tomers, Just like those prospective In the wake of this, more, contact [email protected] some of customers which cross the internet service providers which has kerb, these marketing-gen- are being pushed into pro- tion, there was no barrier to been driven by an industry erated leads need to have a viding unlimited data plans, searching for a motor vehicle readily adopting technology, lot of weight applied to them broadcast TV is struggling to 24 hours a day: waiting for and a customer base ready to around follow-up and effec- maintain advertising revenue, the Trade and Exchange and consume the content. tive sales discipline. and Sky is becoming more Saturday morning paper has For many years it has been Making the sale is always dependent on its sporting become a thing of the past. no secret that prospective the goal for today, and content while its subscription Some do claim that this buyers spend up to six months remarketing always needs to pricing is under pressure. change has also made the researching and evaluating be the goal for tomorrow. On Interestingly this change market more competitive, before crossing the kerb into a average 60% of all dealer- is not based on a contract- which might be true, but I dealership. They come armed ship leads will not progress ing market, but an expanding am sure it has not broken the with total awareness around to a test drive, however, one of higher consumption 80/20 rule which covers any- the product, and market- these prospective custom- and binge watching, sup- thing from business to fishing. based pricing. From our per- ers are still generally in the ported by many more — now The boundaries continue to spective that’s why we push market, and already have a for all leads to be recorded high brand awareness of your within a dealership, as they dealership and products. have not turned up there Many of your opposition’s by accident. sales will come from this pool An understanding of of leads. Remarketing comes this shift is required to in many shapes and forms, allow full control over the and cannot be seen as just total buying process, not one activity. just the few steps through Looking at the diagram it the in-dealership ‘Road is easy to see that in general to Sale’. The upside is that terms there are two types of there is now so much remarketing required. The first more control over pro- is managing your marketing spective customers during leads that are not convert- the marketing phase. ing into sales leads, and the We have quickly Continued on page 23
18 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz MARKETINGTALK
The similarities between website and showroom traffic ny interested digital is an advertising channel to of a shopper and those they marketing dealership bring you online car shop- are likely to heed if they are shopper is finding vehicles Amanager is often con- pers who are interested in actually on your yard. they are interested in. fronted with the dual dilem- the cars you have on your mas of exactly where best to lot (or yard). This, in turn, will (1) Time on VDP (vehicle (3) VDP efficiency. spend their digital advertising increase your chances of detail page) What is it? The percent- dollar, and importantly, how online shoppers turning into What is it? The average age of shoppers that view at much should one spend? showroom visitors, which amount of time a person is least one VDP when they visit. Digital market- specifically viewing individual Why it’s important. All ing providers of cars online. advertising brings in traffic, online advertis- Peter Aitken Why it’s important. A however, if no shopper looks ing often offer up [email protected] shopper’s time spent on at any of your inventory, then to an interested or 021-940 318 a VDP is equivalent to the the advertising that drove dealer customer a amount of time a person on them to your website is not multitude of con- your yard is looking at cars, very useful. fusing jargon, such the longer they look, the How to calculate. Calcu- as Bounce Rates, Page Views will inevitably increase your more interested they are. late the number of sessions Time on Site, CPC, CPM, sales.” How to calculate. Only with at least one VDP view / SEM, SEO and Remarketing, So the key for this exercise count time spent on indi- total number of sessions. to name but a few. They all is how best to determine if vidual VDP pages, not the have their rightful place and the online shoppers you at- cumulative time on all pages. (4) VDP significant actions role to play to assist a dealer tract are actually interested The longer the average dura- per session drive more traffic to their in the cars you have on your tion the better, low VDP time What is it? The average website. yard. How can you tell the indicates shoppers are simply number of VDP engage- To minimize this unenvi- traffic you are driving is of browsing. ment actions a shopper takes able confusion of just which high quality? Importantly, just when they visit your site. digital advertising/marketing what is high-quality traffic? (2) VDP per session Why it’s important. tool will produce the most Liu has developed a What is it? The average Significant actions are one cost-effective results, it pays simple but appropriate amount of vehicle detail of the best measurements to implement a step-by-step definition of quality traffic pages an online shopper for engagement, such as in- approach. Start small, keep it from his studies of a host views per visit. teraction with a special deal simple, and only spend when of retail sectors, including Why it’s important. In the button. you have confidence that a automotive: “Quality digital real world comparison, this How to calculate. Cal- digital tool will drive traffic to marketing is correlated to would translate to the num- culate Significant Actions / your site. increased showroom foot ber of vehicles a shopper Session = Total number of Renold Liu, a contributor traffic, and increased foot looked at when they came Significant Actions / Total to a series of articles posted traffic is one indicator of onto a dealer’s yard. number of sessions. by Speed Shift Media on future sales.” How to calculate. For While there are other digital advertising, covered To assist a dealer in their each traffic source in a measurement metrics, such this topic succinctly. Liu task of assessing the quality given time, calculate VDP as bounce rate, these above wrote: “All digital advertis- of digital marketing, Liu of- per session = Total number four key metrics will assist ing channels will bring your fers a range of four measure- of VDP views / Total number any dealer to assess quality dealership web traffic. But ment tools, and importantly of sessions. The higher VDP website traffic, as well as as a dealer, that’s not what focuses on the similarities per session the better, as simplify digital marketing you want. What you want between the online habits a higher rate indicates the terminology.
AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 19 F&ITALK
Motor vehicle WE ARE NOT THE MARKET LEADERS BY LUCK... insurance sales
Last year we processed over 49,000 successful claim surge ahead resolutions Over 5,000 Motor Insurance sed dealers’ sales of For franchise dealers, sales claims successfully motor vehicle insur- of finance climbed again Uance (MVI) reached in September to 40% of processed an all-time high in Septem- new vehicles retailed, while Over 10,000 NEW customers in ber, with franchise dealers mechanical breakdown sales also doing well. fell to the lowest penetration the last 12 months for private Sales of MVI by used in five months at 43%. Sales motor insurance alone dealers has now risen from of PPI continued to hover 17% of vehicles retailed to around the 12% penetration Over 4,500 mobile assessments 35% in five months. At the mark, while GAP insurance successfully completed same time, sales of MVI by reached the 30% mark again. franchise dealers has grown Finance sales for used Over 136,000 phone calls handled from 8% in June to 14% last dealers reached the 38% with your customers month. penetration mark last month, Overall, sales of F&I prod- while sales of mechanical ucts were marginally down in insurance were the lowest in If customer satisfaction and September, with used dealers five months at 46%. GAP in- making $1164 per retail unit surance sales fell heavily last retention is important to you sold, and franchise dealers month to 25% penetration of CALL US TODAY! grossing $939. sales for used dealers.
Franchise July August September Finance 39% 38% 40% MBI 45% 47% 43% PPI 12% 11% 12% GAP 32% 28% 30% MVI 12% 15% 14% Used/ Import July August September Finance 37% 39% 38% MBI 51% 46% 46% PPI 12% 13% 10% GAP 36% 34% 25% MVI 18% 28% 35% July August September Franchise $927.00 $943 $939 Used/Import $1,089.00 $1,207 $1,164
20 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz Mechanical Breakdown Insurance
Payment Protection Insurance
Loan Equity Insurance
Motor Vehicle Insurance
“The best protection for your customers” www.autosure.co.nz 0800 267 873 F&ITALK
Making the Service Bay pay
n this edition of Autotalk I as the most convenient and thought I’d look at some- affordable way to provide Ithing a little different, a peace-of-mind motoring. profit centre well outside The benefits to your ser- the F&I Department and one vice department include: area of significant opportu- • attractive commission nity available for incremental • customer and dealership profitability through this area protection of your business. • an added service to your The fact is, any dealership customers with a service department, • future customer reten- or an alliance to one, has tion through the servic- far more customers pass- ing requirements of the ing through the service programme. doors each day than it does Remember, your best through the sales doors. So potential new customer is doesn’t it make sense that retention of your existing we should look at your ser- customer, so don’t overlook vice department to gener- the massive opportunity driv- ate more profit for ing in and out of your your business? service department People generally every day! loathe visiting your No-one under- service department. stands the value of It’s like having to go mechanical break- to the dentist — you down insurance bet- know they’ll extract ter than the service Steve Owens your teeth, and also department, and the cash from your wallet. no-one is better positioned The other thing most people to explain those benefits to who visit your service dept. your customers than your know is that vehicles do service personnel. Not only break down, so the scene is do they have the technical already set for you to intro- knowledge, but also the duce the value of mechanical (numerous) real-life stories breakdown insurance. they can tell. It’s time you We’ve spoken in past realised the greater profit articles about overcom- opportunity you have (liter- ing customer objections ally) passing through your to mechanical breakdown business every day. insurance, and we know that Talk to Provident now, underpinning every objection and let us show you how we is cost. So we’ve developed a can help upskill your ser- solution — it’s called Motor- vice personnel with training Cover. and support to help build This is a 12-month the confidence they need mechanical breakdown to effectively and compel- insurance policy that can be lingly explain the features paid weekly, fortnightly or and benefits of MotorCover monthly, by direct debit. For to every service department less than $16 per week Mo- customer. torCover can be introduced to your service customers
22 | AUTOTALK OCTOBER 2016 | www.autotalk.co.nz NEWSTALK
Selling more cars by installing ‘infotainment’ units here has been a huge “Digidrive leads the market the market; the dealer makes margin: increase in the past in New Zealand by provid- additional revenue/margin by • Window hangers, sales Tmonth in the num- ing innovative solutions that selling units to the customer. call to action ber of franchised dealers combine connectivity and “We are currently working • Full-colour brochure installing Digidrive units into entertainment. The units with franchise brands/dealer- • Marketing stand, with fully vehicles they have in stock. have a range of functionality: ships such as Honda, Mazda, functional Digidrive unit to Digidrive units provide the • Bluetooth Nissan, VW and Toyota. demonstrate to customers. ultimate in-vehicle system • NZ Navigation Typically, if a franchise dealer “Don’t let your custom- for information, connectivity • Music streaming requires a solution in some ers go to your competitors and entertainment. • SD card cases they do have an OEM because you can’t offer them “Technology continues to • Wi-fi type solution, these are typi- this simple solution. Call and be a key driver/consideration • NZ Radio stations.” cally for vehicles that require we can tell you what vehicles when customers are buying Lewis says that dealers are a more complex solution. will take a Digidrive unit, vehicles today,” says Digid- opting to do this for reasons “We have installed Digid- manufactured from high- rive’s Mark Lewis. such as: base-model vehicles rive systems into vehicles quality componentry and “Dealers run the risk of do not come with multi- ranging from VW Golf 2014 supported by a 12-month potentially missing out on media units; there is no NZ to the Suzuki Swift 2016,” warranty,” Lewis says. the sale of a vehicle, and/or navigation/no Bluetooth/no Lewis says. To find out if your vehi- additional income, if their ve- music streaming; Digidrive “We are also able to cles are suitable to have a hicles do not provide the ul- adds value by being more support dealer sales with a Digidrive unit, call 0800 333 timate in car-entertainment appealing and a point of dif- suite of marketing material 803, or email info@digdrive. systems for customers. ference over other stock in to drive awareness/sales and co.nz. Technology is always NYK VEHICLE ‘moving the boundaries’ EXPRESS SERVICE Continued from page 18 above, the leads generated second is for those leads from this activity need to be from within your dealership highly valued. that you cannot convert Sales leads, those mainly Reliable fortnightly into sales. within the ‘purchase’ arena, vehicle logistics The customers who must have a separate and remain within the market dedicated remarketing service JAPAN to NZ selection ‘above the line’ focus as they are tomor- have in most cases been row’s sales, and already driven to your website via have direct engagement PORT TO PORT / direct advertising or the with your business. If you DOOR TO DOOR likes of Google AdWords. are an AutoPlay customer, to Auckland, Christchurch, Once they are identi- this is where our ‘Live Leads’ Wellington, and Nelson fied, the remarketing service fits in, keeping messages change as they these prospect customers move through the stages engaged until they are ready Full MPI inspection from awareness to intent. to purchase. This is where technology Technology has been a service from Kawasaki, has moved the boundaries, huge enabler for both our Osaka, Nagoya and Moji providing techniques that are business and our custom- nothing short of a black art. ers’ access to products and SUN PHOENIX CO.,LTD. + Marine Insurance available The front end of the services. The step change technology, however, is that we need to be aware For eFFIcIent custoMer Focused servIce very usable, and needs to of is the ever-changing be leveraged because it is movement of the bounda- contact NYK no longer in the hands of ries around the customer’s Auckland Branch 0800 695 546 Christchurch Branch 0800 695 2424 the sales representative as sales journey, and the tech- it was in the past. As stated nology which supports it. email: [email protected]
AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz | 23 ADVANTAGE
NOVEMBER 2016 Joint delegation heads to Japan for ITS research
epresentatives of the Ministry of and infrastructure. This technology is attended the International Standards Transport and the IMVIA will be in already available for some makes and Organisation (ISO) technical committee RJapan during November, to meet models in the Japanese domestic fleet. meeting TC 204 on intelligent transport with a range of Government officials The concern is that vehicles systems, held in Auckland during the and trade parties within the motor ve- equipped with this technology, and first week in October, and the ITS World hicle industry. that broadcast in the 700 MHz band, Congress in Melbourne the following The purpose of their visit is to do are non-compliant in New Zealand, week. This global event brought to- further research on what’s known as as the frequency is owned by our gether 11,000 delegates for more than the “760Mhz issue”: Japan’s growing mobile networks. This is a challenge 1000 workshops and sessions, show- use of this frequency for communica- that affects not only New Zealand’s casing the latest emerging technolo- tion between vehicles, other road users, supply of imported vehicles, but other gies and highlighting areas where more technology being developed in Japan urgent research is needed. such as cell phones and other personal The joint trip brings synergistic devices. It is relevant to note that New benefits. Ministry representatives are Health Zealand’s use of this frequency for tel- able to open doors for our industry to ecommunications was done to remain the relevant Government departments and Safety harmonised with the rest of the world. in Japan, whilst gaining the benefit of Japan is currently the only country in access to international industry con- the world that has decided to use this nections. band for ITS technology. This combined effort aims to in- Are you prepared for IMVIA policy analyst Kit Wilkerson, crease communication and coopera- the new Health and Safety representing New Zealand’s used vehi- tion between exporters and importers, framework? cle trade, is up to speed after his recent and support the ongoing successful By 2020, the Government aims activity at two major conferences. He trade of motor vehicles. to achieve a 25% reduction in workplace injuries. New rules to achieve this goal were introduced on April 4. Are you ready? The IMVIA is here to help, with industry-ready Procedures Kits for workshops, car yards and compliance shops – developed in conjunction with experts HRtoolkit. For more information, contact: Malcolm Yorston, Technical Services Manager on 0800 046 842 or DDI 09 573 3243 Email: [email protected]
Advice and advocacy for the used vehicle industry WHAT DO If you have technical questions, compliance problems, WE DO? consumer complaints, staff issues – we can help! Advice and advocacy for the used vehicle industry
basis ever since. We have deliberately worked hard to develop relationships with government and opposition politicians Vinsen’s View and officials, and it’s an approach that works. We are no longer “fighting” them, The monthly report from IMVIA chief but actively collaborating and cooperat- executive, David Vinsen ing with the machinery of government. Far better to be involved in the Build it before you need it development of policy, even down to conducting original research, than to be THE IMPORTANCE OF STRATEGIC RELATIONSHIPS always on the back foot, trying to resist whatever comes out of it. A good exam- here’s an old saying in sales and ticians and officials. I was told to “spend ple was the development and imple- marketing: we buy things from more time in Wellington”. mentation of the rules for ESC, where we Tpeople we know, like and trust. Easier said than done. You can’t just contributed to the development of the Our industry has a reputation for “go to Wellington”; you need a purpose policy. This led to a much better outcome embracing this concept. Dealers are and a goal. Luckily, the association had for the public in terms of safety and af- very loyal to their service providers, engaged the services of Barrie Saunders, fordability, and supported business conti- such as export agents, warranty and a government relations consultant (or nuity for the imported vehicle industry. finance companies, and generally will lobbyist) from Saunders Unsworth, now These days, we are involved in all not change unless they have a serious the country’s leading practice in this pro- things transport – and have a relationship difference of opinion or poor service. fession. In those days, though, Saunders with every relevant department. We make However, this principle that under- Unsworth was just getting started, and submissions on policy, attend interna- pins business dealings goes far beyond we (then the IMVDA) were one of Barrie’s tional conferences on wider industry just commerce; it applies equally, or first clients. We used to joke that we took topics, and this month are partnering with more so, to our personal and strategic a punt on him, and he on us. We both the Ministry of Transport in a research relationships. needed each other, and had to trust each delegation to Japan. The IMVIA is the business associa- other: us, that he would be effective, We have also convened our Board tion that represents the used vehicle and Barrie, that he would get paid. And it in Wellington on two recent occasions, import industry. It has a long history, worked out; we still have a good working so that ministers, department heads and deserved reputation, of aggres- relationship to this day. and officials, opposition politicians and sively resisting government initiatives to Barrie took me under his wing, and other motor industry figures can meet regulate and limit the industry. Think of gave me a crash course in “Lobbying 101”. our National Executive members. Our the seatbelt anchorage rules, or frontal He introduced me to the key people I regular networking events, most recently impact regulations. We did not hesitate needed to know: government and op- at Parliament, give politicians, officials and to take whatever action we felt neces- position politicians, officials and other industry leaders a unique forum to build sary to make our point, whether it be via business associations. on their own strategic connections. publicity campaigns or court action. The introductions were very helpful, These initiatives are proving effective, This attitude served us well in the early but nothing was as helpful as Barrie’s resulting in stronger, more collaborative days of importing, but the industry, and advice to “build your relationships relationships with the relevant authori- government, matured over the years, and before you need them”. This was ex- ties. We now have far greater scope to a different approach was needed. When cellent advice. It is very difficult if you contribute early on in the development I took on the role of chief executive of only meet officials or politicians when of new legislation, and influence think- the association 13 years ago, reporting you have a crisis or request. Far better ing when it matters most. to a board of elected National Executive to have a good working relationship The depth and effectiveness of our members, one of the first instructions I with them already, a mutual under- strategic relationships is a testament to received was, “Stop fighting Wellington, standing of each other’s roles and the maturity of both the industry and and start working with them.” Wellington, ideally, a personal connection. government, and a sign of how far we of course, meant government, both poli- And I have tried to operate on this have come over the past 28 years.
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26 | AUTOTALK NOVEMBER 2016 | www.autotalk.co.nz came on board as Andrea cameonboard as progressed rapidly. John’swife founded. From there onthings Japanese exporters. toall to offertheservice customers -itwasdecided on requestfromexisting developed-and service (Heiwa Auto),butasthe one largeJapaneseexporter offered tocustomersofjust service from Japan. port-to-door vehiclelogistics tohub becamethe‘original’ package. to-door shipping in-one, fullport- fixed price,all- importers witha way tosupply for asimpler ognised aneed vehicles. Herec importers of Japaneseused had beenoneof theoriginal John Davies. Auckland, thebrainchildof Waimauku, innorth-west in theruralcommunityof operations inasmallshed Zealand autoindustry. years of servicetotheNew A Celebrating 10ground-breakingyears In 2006 Autohub was In 2006Autohubwas wasinitially This service And soAu- In aprevious life, Davies The companystartedits this year–itsfirst10 reached amilestone utohub NZhas
present customers foryoursupport. Vehicle Logistics.Thankingallour pastand Celebrating 10yearsofAll-In-One fixedprice FEATURE - onDve o ant Frank Willett JoeBarnett John Davies SHIPPING, LOGISTICS AND COMPLIANCE now worked inNewZealand AA inspectioncompany, and in theUK,having ownedan history inthemotortrade ing inNZ.Barnetthadalong an Englishmannowresid - meetings withJoeBarnett, Davies hadafew chance pore service wasestablished, shipping outof HongKong. was alsoexpandedtocover services toNZ.Thisservice Singapore tosupplyexport established withYKShipin Singapore. Apartnershipwas ers tostartaserviceoutof proached byafew custom- new premises Davies wasap- more staff were required. and hadrunoutof room, as and swelteringinsummer- - whichwascoldinwinter built toreplace theoldshed logistics manager). and by BarbaraMitchell(accounts) chief financial officer, helped Not longafter theSinga- Soon after movingintothe In 2008anewoffice was (vehicle Robin Suttie(vehicle Danny Knight emissions certificates. ments of compliance,and the abilitytooffer UKstate- plier, andnowAutohubhas technical information sup- internationally recognised lished arelationship withan Awards. Barnettalsoestab- Lloyds 2012GlobalFreight UK becameawinnerof the freight industry, andAutohub ognised bytheinternational and efficiencieswere rec ment, performed byJEVIC. tion processes priortoship- offers MPIandNZTA inspec were commissioned,which inspection facilityandyard Felixstowe. Apurpose-built centre basedontheportat Autohub-owned UKexport ager andestablishedan on board astheUKman- UK imports.Barnettcame the market openedupto ened againsttheUKpound, with bothAAandMTA.