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AUGUST 2021 .CO.NZ

(L) RICK ARMSTRONG (R) TROY KENNEDY KENNEDY TAKES THE WHEEL AT ARMSTRONG'S P.08 Page 03

MechanicalMechanical Breakdown InsuranceInsurance Payment Protection Insurance Guaranteed Asset Protection Insurance ‘TRUNCATED’ CLEAN Loan Equity Insurance Payment Protection Insurance CAR LEGISLATION Motor Vehicle Insurance Car Insurance www.autosure.co.nz PROCESS www.autosure.co.nz | 0800 267 873 Page 07 The market leader for over a decade. SAFETY RATING LABEL Shift to the Autohub Team and experience the Autohub difference. LAUNCHED FOR

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1 New Zealand AUGUST 2021 EDITORIALTALK

THIS IS RICHARD EDWARDS CRAZY! MANAGING EDITOR

ell, who would have vehicle deliveries. Toyota New Zealand thought this time last year now has an average 16 week wait for W that we would end up with delivery. a market like the one we have now. Companies with electric vehicles in New and used registrations are up stock have had massive months, across the board, and electric vehicle setting new records for the segment. sales are at all-time records. The Greens jumped on social media Generally, when talking to dealers to laud the result and seem to about how things are selling there’s expect it to continue at the same a groan, sigh, and a “not bad, could level. be better”. It was pointed out to me that what Not lately. Now it’s '”wow, we’re so had probably happened was that busy”; “where can I get more stock”?, six months of stock was sold in one and generally complaints about the month, a view that was confirmed by Government. another brand. Some are so busy they’re at the point In my 21-years around the trade, I of breaking. One floated the idea to have never seen a time like this. Will me that they were thinking of closing it last forever? Heck no. the gates for a week to catch up on Will it last for long? Probably not. deliveries. The key thing for dealers is looking A used import operation used to forward. Just because selling and hand over the keys the same or next marketing is arguably one of the day: buyers are now waiting a week easier parts of the business right now to take possession. – versus sourcing and delivering – Another prominent new vehicle doesn’t mean it will always be like franchise manager posted a meme that. on LinkedIn celebrating “that feeling Don’t forget the fundamentals of when the right stock arrives on time”. the dealer business, listen to your Cars are in that short supply. suppliers and partners, and don't Speaking of supply, multiple brands ignore the service business and now have notices on their websites – long-time customers as you work to a pop-up you need to get past to see keep up. the website in the case of Mitsubishi Next year could be totally different. New Zealand – explaining delays in

RichardMANAGING Edwards EDITOR

2 New Zealand AUGUST 2021 NEWSTALK

CLEAN CAR LEGISLATION PROCESS TO BE 'TRUNCATED' MICHAEL WOOD DAVID CRAWFORD

he process of legislating for be consulted on) for the full feebate the Clean Car Discount is set to scheme to come into effect." Tbe shortened according to the "My view is I will be very surprised if minister of transport. the January date is reached." The changes required for the He is concerned the important GREIG EPPS DAVID VINSEN penalties need to be in place by legislation could be rushed. January 1, 2022, though normally “Legislation on the run is legislation "Yes, we are seeing the outcome of such a process takes six months. underdone”. speed now. As with most complex Minister Michael Wood says it will matters, the devil is on the detail. "The policy on the Clean Car Discount make it across the line in time - but Detail takes time to unravel and work was not fully fleshed out when it was with a caveat. through. One example of complexity announced. For example, the Climate “Legislation will be introduced soon that was not, in our view, adequately Change Commission heard MTA and – passed and enacted before January sorted out is the linkage between others in the industry say that EV 1, 2022," Wood says. "There will be a WLTP testing and Euro 6d." supply was a risk and so it identified petrol hybrids as an important truncated process but there still be an "In the cabinet paper they had transition vehicle. However, hybrids opportunity for people to have their recommendations that new vehicles were not included in the early say on the Bill.” should be tested using the WLTP test discount implementation along with "There will be an opportunity for protocol from Jan 2022, and that EVs and PHEVs. No inquiry had been people to submit to the Select Euro 6 be adopted in 2022. But it made about what impact the discount Committee on it, but it won’t be the is not that simple. Euro 5 and Euro might have on vehicle finance usual six month process." 6b use the NEDC testing protocol arrangements. What else might be for exhaust emissions and fuel Pushing the legislation through under missed?" urgency is not planned at this stage consumption. It is Euro 6d that uses "If the scheme is passed under according to Wood. the WLTP testing protocol." urgency, then the risk of error is "It seems there was poor Urgency, which could further curtail heightened. By the time it reaches the understanding of the linkages debate, isn’t planned at this stage. House as a draft law, the chance for between WLTP testing protocols and Motor Industry Association chief consultation with industry and the the various Euro emission standards. executive David Crawford understands public has gone and the window for There was also a poor understanding the submission process will be picking up mistakes has closed." of how the NZ market works. In effect condensed to 10 weeks, which is "too there is not one, it is an Australian VIA chief executive David Vinsen short". or Australasian market. So unless believes the process will make the "Our understanding is that Cabinet Australia adopts Euro 6d, New Zealand January 1 deadline. is likely to consider the legislation can’t get the bulk (over 90% of "Yes, but it will be rushed." Cabinet paper this week and if so, current models) tested using the WLTP He suggests this is exacerbated by a agree to the Bill being introduced testing process. Nor can we get the 'lack of expertise' at the ministry - by the end of the month," Crawford bulk of our vehicles built to Euro 6d though the emissions group of the says. "We are hearing that once standards." government body is advertising for it is at select committee there is Greig Epps, advocacy and strategy additional resource in this area now. likely to be a period of 10 weeks manager for the Motor Trade for submissions before it is referred "There is a decided lack of expertise, Association is also concerned at the back to the House. experience and knowledge at the compressed schedule. Ministry; conversely, NZTA has a "Regulations will also be required, "With a majority in the House, it team of good people working on not for rebates, but for fees and should not be a problem for the implementation of CCS." penalties. So they need to get the legislation to be passed. However, Bill into the house and passed, plus around the office we have a saying: write regulations (which also need to

AUGUST 2021 New Zealand 3 NEWSTALK FINANCE INDUSTRY NOT CONSULTED AHEAD OF CLEAN CAR ANNOUNCEMENT

he finance industry will carry a He says it’s likely that financiers will significant part of the burden be forced to cover penalties, which in Tof the Government's Clean Car some cases could be in the thousands regulations but so far has been largely of dollars, as part of lending. left out of consultation. "As an industry do we have much of The industry is working hard on a choice? If finance companies decide changes triggered by the Credit we’re not going to fund penalties, Contracts and Consumer Finance Act firstly it would bring the used import and is now contemplating what the market to its knees, but it would Clean Car Discount and Clean Car also disproportionately affect the Standard will mean for it. people that need to buy lower-priced How is it affected? There are questions vehicles." around how the rebate is treated and The other issue is the rebate. Though collected on financed vehicles, and also customers can receive a rebate direct, GLENN TODD expectations that financiers will need it’s questionable whether this could to finance fees under both schemes be taken into account in affordability when they come into play. calculations. Both raise questions around "The flaw in it is the rebate has affordability, a critical issue under the no option but to go back to the CCCFA, and the potential for financiers purchaser," says Stephenson. to be left with customers significantly “We could factor that into the “underwater” on vehicles as soon as contract, but I can tell you from they drive off a dealer’s lot. experience that there are people with CFS Finance chief executive Chris all the good will won’t be able to do Stephenson says a lack of consultation that and we will end up having to is concerning. restructure their deal. "I think any time that they don’t "The rebate was supposed to make cars bother to engage with industry there more affordable. This structure is going CHRIS STEPHENSON are mistakes, but my recent experience to hold back a lot of families." is the decision has been made, and It appears most of the finance trade are consultation now is a back block to page 6... exercise. "It’s really disappointing that there wasn't more, or any, consultation OFFICIALS PLAYING with the finance market on this," Stephenson notes. CATCHUP – FSF "There was certainly a volume of consultation with dealers, but not with inancial Services Federation realise that, even though their the finance industry that’s crucial to executive director Lyn own vehicles are leased by our the plan." FMcMorran says government members.” Stephenson says both the rebates and officials are doing a good job of She says officials have been great penalties cause issues for finance, working with the industry now since, including making changes to particularly in relation to fees and they are aware of their role. how the rebate is accounted for on affordability. “It is not just the fact that such vehicles. There is still a lot of A lack of consistency in pricing will we play a massive role in the work to be done however. make things very difficult. financing of vehicles, it is the “We are still working with officials "The fact that you can put two cars fleet leasing companies are as this is just an interim scheme. side-by-side that are essentially the involved in getting electric From the first of January there is same but have different on-road vehicles on the road.” the whole fee and rebate scheme.” pricing will cause problems." “The Government didn’t seem to

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AUGUST 2021 New Zealand 5 ...from page 4 still working out how to deal with the year will UDC consider financing this issue in the coming months and years. component of the purchase price as Magazine and autotalk.co.nz AutoTalk well? are published by Auto Media Group Limited. MTF chief executive Glenn Todd says his company has had discussions with “How the fee will be treated is still 8/152 Quay Street, Waka Kotahi, the Ministry of Transport being considered by UDC and motor P.O. Box 10 50 10, Auckland City, NZ 1030. and the Financial Services Federation vehicle distributors." Ph. 09 309 2444 after the announcement. Orr says the introduction of the rebate It’s working on solutions for customers, appears to have gone smoothly for UDC. including around leasing. "So far the implementation of the MANAGING EDITOR "Yes, we responded swiftly to enable rebate appears to have gone fairly Richard Edwards our finance originators to meet their smoothly," he explains. "The level of 021 556 655 [email protected] customer needs from July 1, day one of interest and related enquiries have the government rebate,” says Todd. increased since this announcement." EDITOR “We're ready to receive the final detail Darryl Harnett, general manager- Robert Barry of the carbon emission-based fees for consumer for Heartland which operates +64 21 530 902 January 1, 2022. the Marac and several captive finance [email protected] "Leasing vehicles took a bit more brands, notes the legislation has yet to be passed and discussions are ongoing. SENIOR JOURNALIST thinking and further work with the Michael Stock legislators. Still, we're comfortable "We’re continuing to work with our 021 240 2402 facilitating and supporting leasing dealer partners to understand the [email protected] and financing vehicles that meet the impact the new legislation may have rebate criteria." once it has been passed," he says. BUSINESS MANAGER Dale Stevenson MTF will be looking to finance penalties "More generally, the recent introduction 021 446 214 for customers. of the rebate scheme has had some [email protected] "Yes, we’ll consider it,” Todd says. effect on the front end of vehicle “Each finance application involves ownership, with the price of hybrid, GROUP GENERAL MANAGER making a responsible lending decision PHEV and BEV vehicles imported from Deborah Baxter Japan increasing, potentially nullifying 027 530 5016 based on the customer's financial [email protected] position, deposit amount, and ability the incentives introduced. to meet loan repayments." “What is unknown at this time is the PUBLISHER / CHAIR MTF acknowledges that risk levels on impact on the value of non-qualifying Vern Whitehead those vehicles do essentially go up. vehicles over time." 021 831 153 [email protected] "It does. How much the rebates and Like other firms’ comments, the issues fees will impact the assets' value is yet around the impact of rebates and to be determined," Todd explains. "In penalties will need to come back to the MTF model, each originator can affordability, Harnett says. Auto Media Group Limited makes every assess and make their own lending "While the proposed programme may endeavour to ensure information contained decisions, weighing up and including have an impact on the starting price in this publication is accurate, however we are not liable for any losses or issues any additional risk." for some vehicles, the fundamentals resulting from its use. UDC finance is still working on how it of Heartland’s vehicle finance will Annual subscription (printed & digital): will handle the process, particularly remain focused on the borrower’s $114 + gst ($131.10) with penalties. ability to repay the debt.” Printed by: Alpine Printers. "We give customers the choice on how they use the rebate," says UDC's Robert Orr. "When penalties begin on vehicles next

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6 New Zealand AUGUST 2021 NEWSTALK SAFETY RATING LABEL LAUNCHED FOR TRADERS

aka Kotahi NZ Transport Agency has launched a safety Wrating label, with a tool for automatically printing them now available online. The label provides consumers with simple information about a vehicle’s safety performance, and sits alongside the mandated Vehicle Fuel Economy Label. It lists the star-rating, but not vehicle safety equipment specifics. For simplicity, when traders generate labels for their vehicles, they can generate automatically a safety label for display on the same sheet of paper as the VFEL. That makes displaying a safety label, and providing the current safety rating information, as easy as possible for traders. The label was launched officially to the public on Monday, August 2. The label generator is available at https:// resources.fuelsaver.govt.nz/label- based on Japanese VIN numbers from and these labels will help make that generator/ auction sheets," Wylie says. choice easier. Waka Kotahi’s latest research shows "Savvy dealers can do their research "Getting more Kiwis into safer vehicles that three out of four consumers are before they buy, and bring in four- is a key part of New Zealand’s Road looking for vehicles with high safety and five-star cars that are more likely to Zero strategy, which is aiming to ratings. to sell.” dramatically reduce deaths and serious So, the safety rating label can be used Wylie's comments are backed up injuries on our roads by 2030.” as a point of difference and a sales by earlier intel provided by Kane Patena commented earlier this year tool by dealers selling vehicles with Patena, Waka Kotahi’s director of land on the role safety plays in buying high safety ratings and helping to transport. decisions. keep people safe on our roads. “Evidence from crashes shows that “People are increasingly placing Todd Wylie, Waka Kotahi’s principal people are more than twice as likely more importance on safety in their advisor for vehicle safety encourages to survive a crash in a five-star safety- vehicle buying decisions, and we’re dealers to use the look-up tool at rated car than in a one-star car,” says continuing to encourage people to dealer.rightcar.govt.nz. Patena. buy the safest, cleanest, most efficient “The look-up tool helps dealers find “We want everyone to be able to vehicle in their price range." cars to import with high safety ratings choose the safest car they can afford, RANGIORA APPRENTICE NAMED 2021 RISING STAR

WR Motorsport Rangiora employee “Ben has a fantastic work ethic, he’s Ben Brown has won the 2021 polite and great with the customers. CCapricorn Rising Stars apprentice of He’s passionate about not only his year award. mechanic side of the job, but also has The Capricorn Group says the Rising a lot of ideas and vision to help us to Stars initiative recognises and grow our business. We wouldn't be rewards Australasia’s top-performing where we are today without him.” apprentices so they may be retained Brown says CWR’s Chris Ward is well in the industry long-term. known in the motorsport field, and is Brown beat more than 600 New regarded as an honest, professional, Zealand and Australian automotive and skilful automotive engineer. apprentices who were nominated by “This has afforded me learning their employers. opportunities I didn’t know existed, “It’s clear the future is in safe hands developing skills I had only dreamt of.” with so many outstanding apprentices As the 2021 Capricorn Rising Star, being nominated by Capricorn Brown will receive $5000 from members,” says Capricorn Automotive Castrol. The CWR Motorsport team will chief executive Brad Gannon. also benefit from enrolment in the “We took on Ben our apprentice in Workshop Whisperer’s Service Advisor August 2020,” says CWR Motorsport’s Pro online programme. Mel Ward. “To say the least, it’s the CAPRICORN RISING STAR WINNER BEN BROWN. best thing we’ve done.

AUGUST 2021 New Zealand 7 DEALERTALK KENNEDY TAKES THE WHEEL AT ARMSTRONG’S

igh-profile dealer Armstrong’s has appointed chief financial Hofficer. Troy Kennedy, to the newly created role of chief executive officer. Kennedy takes responsibility immediately for the day-to-day operations of the business and the delivery of Armstrong’s longer-term growth ambitions. He’ll continue to work alongside founder and managing director Rick Armstrong, together with the wider Armstrong’s LEFT RICK ARMSTRONG, RIGHT TROY KENNEDY. executive team. “Troy has been an integral part of the commercial acumen Troy brings, “Today, we represent 16 international Armstrong’s executive leadership underpin the next chapter of Armstrong’s automotive marques at 33 brand team for more than four years,” says continued growth.” locations nationwide, with the number Armstrong. Before joining Armstrong’s in 2017, of automotive brands and Armstrong’s “He’s been instrumental in driving Kennedy, a chartered accountant, held sites set to expand even further in the recent growth and helping guide the senior executive and finance positions near term. business through the unprecedented in New Zealand and Britain, including “This opportunity couldn’t have come at events related to COVID-19. with PwC and Platinum Equity, a global a better time. I’m focused on achieving “His transition to chief executive officer M&A firm advising growth companies on sustainable growth while at the same strengthens our senior leadership unlocking long-term, strategic value. time nurturing our talent. expertise with his extensive finance and “I’m grateful to Rick for “I’m incredibly excited to step into this international management experience. this opportunity,” Kennedy new role and look forward to leading our “Troy is a natural leader and is highly says.”Armstrong’s is starting another dynamic future trajectory,” he adds. respected across the Armstrong’s team. exciting new chapter of growth, which In conjunction with Kennedy’s He’s passionate about putting our I’m excited to be leading alongside an appointment, Armstrong’s is recruiting people first and ensuring our customers outstanding executive team. a new chief financial officer as well sit at the heart of everything we do,” “In less than three decades Armstrong’s as key personnel in other areas of the Armstrong says. has emerged as New Zealand’s largest business. “The introduction of the position, and privately-owned, premium dealership.

BUOYANT JULY AND HIGH 4X4 UTE DEMAND

ales at Paul Kelly Motor Company’s fleet – and Brett Anderson our NZ the levy; they have low CO2 emissions”. four used car branches in vehicle purchaser aren’t having as “With the bigger-engined European SChristchurch were strong in July many sleepless nights as they were six vehicles we’ve been selective about but they were particularly so at the months ago.” what we purchase going forward.” Manchester Street yard which deals However, to secure good stock the mainly in double cab utes. Harris says the company has been able company is having to pay a little more. to maintain good margins. “June was OK,” says general manager The Japanese market is still in lockdown “Our stock across our four yards is Ben Harris. “But July has been strong in some areas, says Harris. “It’s supply across the four yards.” from $5990 to over $230,000, and and demand and there’s not the level a percentage of those vehicles will Sales have been buoyant, especially of stock there that there was pre-COVID. attract a levy next year, but we don’t for four-wheel drive utes and SUVs. “But Jason has been doing this job focus on one particular area. Harris agrees the Government’s for 20 years and he’s got really strong “Overall, sales are strong but there’s announcement that new utes sold relationships that are proving to be still a little bit of volatility and after January 1, 2022, will attract a tax invaluable. uncertainty in the market, though it’s to help pay for the EV rebate has had a “Brett with NZ-new is working really safer than it could have looked (in a knock-on effect. hard and is having to think outside time of COVID). People may be getting in early and the square when he’s buying, say, “We have three days of trading left (in buying used utes in case the levy Ranger utes.” July), and we’re on-track to deliver a increases prices for second-hand On the electrified vehicle front, “we’re result that I’m pretty sure Paul (Kelly) vehicles. getting more enquiry for hybrids and is going to be happy with,” Harris said Looking forward, Harris says that with EVs. There’s more awareness and we’re when AutoTalk spoke to him towards the fee being added to ute prices, he getting enquiry about vehicles and the end of July. feels fortunate that Paul Kelly Motors their eligibility for the rebate.” “If what we’re seeing in July translates is dealing in second-hand rather than Though the Government’s into August and beyond…” new utes. announcement on rebates is Harris says Paul Kelly Motor Company Supply of used vehicles is better than stimulating enquiry “at this stage benefits by being a trustworthy brand. it was, and Kelly Motors’ stock levels as much as anything it’s about are “about the same as it was before education”. “A lot of customers have had a COVID”. good experience with (us)…and the Harris says Paul Kelly Motors is a big strength of our brand is coming “Jason Wood who buys our used importer of smaller-engined Japanese through at the moment.” imports – which are 90% of our cars: “a lot of them are exempt from

8 New Zealand AUGUST 2021 What’s the safety rating of that car?

Three out of four consumers are looking for vehicles with Now, when traders generate labels for their vehicles, high safety ratings when they purchase their next car. they can automatically generate a safety label to display alongside the VFEL, which makes displaying You can now print a vehicle safety rating label to a safety label, and providing the current safety rating display on cars for sale, providing consumers information, as easy as possible for traders. with simple information about a vehicle’s safety performance to help keep people safe on our roads. To print safety rating information for the vehicle you are selling, just go to the label generator on How do I generate a safety rating label? EECA’s website resources.fuelsaver.govt.nz/label- generator and follow the instructions. The safety rating label sits below the Vehicle Fuel Economy Label (VFEL), which is administered by How can I find out more information? EECA (Energy Efficiency & Conservation Authority). The VFEL must be displayed on all cars for sale by Visit dealer.rightcar.govt.nz to find out more motor vehicle traders and informs customers of the information about how safety ratings work in fuel efficiency and estimated yearly running costs New Zealand, and for links to useful resources of the vehicle. for motor vehicle dealers.

visit dealer.rightcar.govt.nz 21-321

AUGUST 2021 New Zealand 9 NEWSTALK

MANAGING THE SUPPLY CHAIN IN THE SECOND HALF

As the December 31 deadline looms for the introduction of the Clean Car Fee, AutoTalk asked some vehicle distributors how they’re managing the supply chain and dealer and customer expectations.

FORD TELLS DEALERS IT WON’T PAY Everest SUV and the Ranger ute but CLEAN CAR FEE Ford NZ won’t release stock to dealers Ford New Zealand has told its dealers until it has seen a signed customer it won’t pay the clean car fee for order (VOSA). customers because dealerships “We’ll supply current vehicle stock promised them a vehicle could be strictly on a first come, first serve, delivered in 2021. basis, to make the process as fair and Managing director Simon Rutherford equitable as possible.” told media at the launch of the The new Escape PHEV and Transit Escape plug-in hybrid (PHEV) that Custom PHEV can be ordered now, Ford has published the potential and from August 1, the Transit Custom clean car fees to its dealers and PHEV’s price dropped below $80,000 SIMON RUTHERFORD will work closely with them as the to qualify for the Clean Car Discount. December 31 deadline looms. CLARITY OF CUSTOMER Ford has launched two versions of INFORMATION IS KEY the Escape PHEV. The fleet-focused As monthly shipping receipts go from Escape PHEV retails from $60,990 highs to lows, Audi New Zealand plus on road costs, while the more general manager Dean Sheed says it’s upscale Escape ST-Line X PHEV is key for dealers to maintain clarity of $66,990 plus on road costs. information to customers. “We’ve been very clear to dealers that All Audi models have been affected Ford NZ will not pay a penalty for a by the semi-conductor shortage and customer’s vehicle because the dealer he envisages supply chain issues will promised it could be delivered in continue to some degree into 2022. DEAN SHEED 2021,” Rutherford says. “We’ll be carrying over outstanding “By the time we get to October, orders in the system for more models we’ll know what we can deliver to due to production difficulties, none customers by the end of December, more so than other brands,” Sheed and we have to be very customer- says. focused and transparent with Audi has dealer or customer orders for them, so they can make the best all its remaining allocation of e-tron decisions....” electric cars for 2021 and, unlike Ford, Rutherford says Ford NZ has faced hasn’t told dealers it won’t be held supply restrictions because of liable for a clean car fee. COVID-19 and the shortage of “The intent of the Clean Car Fee is semi-conductors used in vehicle a disincentive to the consumer – production. clearly the opposite to the rebate RODNEY GILLARD Supply of the Puma ST-Line has been which we don’t receive,” Sheed says. restricted and there has been no 13. Page views increased by 48% and “We haven’t seen the final detail yet; production of the 2.0-Litre Escape SUV the spike lasted for three days. however, we believe it will need to be since January. “The electric hub page views paid at time of registration. Hence, it increased by 118% in June from Orders for the Ford Performance Focus will be agreed between the dealers May, and overall e-tron page views ST and the Ford Mustang won’t be and customers at the transaction increased by 20%. delivered before December 31, says point.” Rutherford. “However, the web traffic is back to Sheed says the Audi website saw a normal with no big fluctuation from However, Rutherford says there’s spike in traffic straight after the Clean July,” he adds. currently a good supply line for the Car Discount announcement on June to page 11..

10 New Zealand AUGUST 2021 NEWSTALK

...from page 10 SKODA WILL BE A NEUTRAL BRAND environmental efficiency,” he says. premium to move into an electrified Skoda New Zealand general manager “We’re working with our dealer Skoda model,” he says. Rodney Gillard says he believes by network to make sure we know the “We think sales of the ICE Superb may December 31, all the brand’s new exact amount of applicable Clean be affected by the Superb iV PHEV, vehicles will be CO2 neutral or will sit Car discount (rebate) or fee by each particularly for people who do a lot of in the rebate category. vehicles engine and specification. long distance travelling.” “At the moment we have three “But our dealers won’t know what Gillard says various Skoda models vehicles in the line-up which are this looks like until after December are affected by the semi-conductor affected by the 192g/km threshold. 31.” shortage but thanks to visibility of “However, these vehicles are all due Gillard says the announcement of production, the brand won’t ship a for facelifts and replacement engines the Clean Car Discount on June 13 car until it’s ready to go. which we expect to be neutral or was “incredibly fortuitous” for the Dealers have adapted to the “new potentially offer a rebate, but we’re brand which is introducing the new normal,” understanding mit’s a waiting on confirmation of this,” Skoda Superb iV PHEV. global situation, and customers have Gillard days. Traffic on the future models page adapted to ordering a new car and “I expect that Skoda will be a on the Skoda NZ website increased waiting for it to arrive. neutral brand with vehicles that 125% after the announcement and “European brands have always been come with rebates on both plug-in Gillard says dealers have snapped used to a four-month turnaround hybrid electric vehicles (PHEV) as well up and allocated all of the first two from order to production to shipping as internal combustion engines (ICE). shipments of Superb iVs. but now the non-European brands “Our new petrol Fabia could offer “The dealers have asked us how much are finding themselves in the same as much as $2500 rebate for its stock of the iV cars that they can give, boat,” Gillard notes. as the discount has now halved the

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AUGUST 2021 New Zealand 11 DEALERTALK

DOT AND THE NAPIER BOYS HIGH SCHOOL 1ST XV BAYSWATER VEHICLE GROUP FAREWELLS FOUNDER DOROTHY (DOT) TOWNSHEND

awke’s Bay’s Townshend family has paid tribute tomotor Hindustry identity and Bayswater Vehicle Group founding shareholder Dot Townshend, who died aged 90 on July 13 after a short battle with cancer. After the death of her husband Charlie Townshend more than 31 years ago, Dot founded Bayswater Vehicles Limited with her son Robert (Rob). Since then, the family says Bayswater Vehicle Group has grown from a small corner site in Napier with a single vehicle brand to having seven dealerships representing nine brands L-R BAYSWATER VEHICLE GROUP in Hawke's Bay and more recently, SHAREHOLDERS – MEL CHAN, ROB AND DOT GILTRAP GROUP CO-MANAGING DIRECTOR Manawatu. TOWNSHEND MICHAEL GILTRAP AND DOT TOWNSHED Before her death, the family says Dot remained involved actively in the fuel station. Group, which the family says has grown business. She also held extensive In the early days, the business to a dominant force in Hawke’s Bay property interests and supported local operated in central Napier and had a and a nationally recognised automotive philanthropic causes especially relating modern facility with a second-floor group. to the arts and youth. workshop, which was innovative for Along the way, Bayswater has been The Townshend family says Dot’s the time. awarded many industry accolades, involvement in the Hawke’s Bay In later years, as Townshend Motors including Hyundai Asia Pacific dealer of automotive industry began 65 years ago expanded, it became mostly associated the year in 2016. when she and Charlie (and Charlie’s with the Mitsubishi brand. The Townshend family says Dot brother George) bought J.E. Peach and Following Charlie's death in will be remembered fondly for her Company. 1997, Townshend Motors passed strong business mind, her vision, The business was renamed Townshend controversially to new ownership. her emotional intelligence, her Motors and represented David Brown extraordinary ability to close a deal Dot and Rob invested their remaining and for her kindness and friendship. tractors, Hillman and Chrysler cars, equity into founding Bayswater Vehicle Commer Trucks and operated a Europa

12 New Zealand AUGUST 2021 DEALERTALK WANGANUI TOYOTA PAYS TRIBUTE TO MUCH RESPECTED OWNER

anganui Toyota closed for Jordan and Troy, and Kerryn and Brad. business on Friday July 23 to Loving grandad of Tayje, Ricki, Wallace, Wfarewell its owner and chief Lawson, and Kewana, loved brother of executive officer Richard John Nessling Murray and Jenny. A loved brother in (55) who died peacefully on Monday law, uncle, and friend. July 19. “It is with a heavy heart that we A service to commemorate Nessling’s farewell one of our own. Richard life was held at Wanganui’s Cleveland Nessling had Toyota red running Chapel and a recording is available to through his veins and was committed view at www.clevelandfunerals.co.nz to the Toyota brand for almost two for people who couldn’t attend. decades,” says Toyota New Zealand Nessling began his automotive career chief executive Neeraj Lala. as a salesman at Wanganui Toyota at “He was so passionate about making its former premises on the town’s main a strong contribution to the local avenue. Wanganui community, and this was Nessling and his family moved to New amplified when he and his wife Plymouth where he worked for W R Michelle, took over the full ownership RICHARD NESSLING Phillips, and from there he moved to of Wanganui Toyota in 2017. a role at Taupo Toyota. “He knew how to deliver an excellent “Our thoughts and condolences are The Nessling family eventually moved customer experience and was always with his wife Michelle and their family back to Wanganui, where and proud of the performance of his team Richard at this difficult time,” Lala adds. his wife Michelle bought the Toyota at Wanganui Toyota. dealership. “He was an integral part of both the Auto Media Group also extends its condolences to Michelle Nessling and The death notice said Nessling was “a Wanganui Toyota team, but also the the wider Wanganui Toyota family. loved dad of Brett, Nicole and Rob, wider Toyota family and will be sorely missed.

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AUGUST 2021 New Zealand 13 DEALERTALK

SOUTHERN AUTOS BOTANY SUZUKI AND ISUZU UTE DEALERSHIP. OFFICIAL OPENING FOR SOUTHERN AUTOS’ BOTANY SHOWROOM

outhern Autos Botany has to operate from Portacom buildings for celebrated the opening of its all- more than six months on a construction Snew purpose-built sales, parts and site during 2020, having no signage or service Suzuki and Isuzu Ute dealership a service department, and dealing with at 271 Botany Road, in Golflands, the pandemic lockdowns, Craw says the southeast Auckland. uptake of the Suzuki brand has been It’s the second Southern Autos “exceptional”. dealership operated by The Colonial So far Southern Autos Botany has Motor Company. The first was opened retailed more than 236 new Suzukis on Great South Road in Manukau City against a target of 180 units. ANDREW CRAW, MATTHEW NEWMAN AND THE SOUTHERN AUTOS TEAM. nearly seven years ago. “Without the team we have this would The Southern Autos team gathered with never have happened,” Craw says. customers and representatives from “They do a fantastic job with the he says. The Colonial Motor Company, Suzuki customers, and without our customers I want to thank the entire Southern New Zealand, Northern Stars Netball, we wouldn’t be in business. Autos team for bringing this project to Isuzu New Zealand, Savory Construction, “We also employed the best barista in fruition, and a special mention to Mike and Rawa Engineering and Contracting Halliday, Jeremy Waters and Wayne for the showroom’s official launch on Botany as a salesperson and that also helped our business,” he jokes. Herd.” August 4. Suzuki NZ automotive marketing The Botany Road site was occupied Currently, Southern Autos Botany has four salespeople and four in the service general manager Gary Collins says the formerly by a service station and then brand has had a great partnership a used car operation before Southern department and Craw expects that eventually, the business will employ working with Southern Autos and The Autos began trading there in January Colonial Motor Company. 2020 with the Suzuki brand. more than 12 people as customer demand grows. “It’s great to be here in such a nice Southern Autos Manukau and Botany new facility in Botany,” he says. “We’re dealer principal Andrew Craw says the The new showroom and five-bay service department opened for business very excited about the future of the area was an exciting opportunity for the brand.” new vehicle retailer and the company in May 2021, and the business has now become a Waka Kotahi-NZTA certified Isuzu Ute NZ dealer development believes the Botany demographic would manager Marcus Walker also be a good fit for the Suzuki brand. Warrant of Fitness provider. Craw says that will provide further acknowledged The Colonial Motor The Botany PMA for Suzuki is around Company and the Southern Autos the same size as the Palmerston opportunities to increase the dealership’s customer base. Botany team. North’s, says Craw. And more than “It’s a huge investment to put a new 40,000 cars drive past the dealership Southern Autos chief executive officer Matthew Newman says it’s not often dealership together, so I’d like to every day on Botany Road. thank The Colonial Motor Company That’s significantly more than the that a franchise new vehicle dealer gets the opportunity to be a little creative for the opportunity to market Isuzu 25,000 cars that drive past the Southern Ute, especially as we’re launching Autos Manukau dealership on Great and build something from the ground up. our new MU-X SUV. The team here are South Road. awesome to deal with.” In spite of the Botany sales team having “To create something from nothing and to see it prosper is such a joy to me,”

14 New Zealand AUGUST 2021 SHOWROOM MERCEDES-BENZ: NO NEED FOR LOW COST EQA

ercedes-Benz New Zealand says there was little point in Moffering an additional cut- price version of its new entry-level EQA battery electric vehicle (BEV). The EQA 250, based on the GLA small SUV, is priced from $85,500, just $5500 more than the cut-off for the Government's clean car rebate of a little over $8000. And its impressive specification suggests there could be room to move. Not so, says MBNZ general manager Lance Bennett, noting Mercedes is aware of the threshold, but notes that even without the rebate: "we have a the daytime running lights, and blue multi-function sports steering wheel. healthy order bank for new vehicles. colour highlights within the full-LED Standard safety equipment includes We’re selling as many as we can get.” headlights reinforce the EQ appearance. active distance assist cruise control A spokesperson adds: "the key thing It looks great on the white cars we with automatic restart, route-based for us is that the car meets the drove on test, but a little odd on speed adaptation, and a range of active expectations of a car that has a star the black entry-level unit that’s also assists including steering, braking, lane on the front. We believe the EQA does available. keeping and blind-spot monitoring. that." The rear-end is unique, with EQ- The Edition 1 package includes 20- Besides, Mercedes says early orders specific trims and the numberplate inch AMG multi-spoke light-alloy lean heavily towards the more highly relocated in the bumper. wheels finished exclusively in matt specified, and $7300 more expensive The boot isn’t class-leading at copper, plus AMG Line exterior trim Edition 1 model. 340-litres but is still entirely functional and further gloss-black details. At that price, with 480km range, for a vehicle of this size. There are also Neva grey leather and 65.5kW temperature managed battery, The EQA has adjustable damping Cyber Cut blue upholstery, back- 140kW and 365Nm motor powering the suspension with multi-link rear, a lit spiral-look trim elements, blue front wheels, the EQC clearly targets direct steer system and Dynamic Select stitching for the door panels and centre Hyundai’s Kona EV Elite. driving mode selection, and rides on console, air vents in silver chrome and Where it’s clearly ahead is in its more 19-inch AMG 5 twin spoke light-alloy energy blue, and a sports multifunction modern design, comfort features and wheels. steering wheel with flat bottom and up-to-date technology. perforated grips. Inside, the EQA is equipped with An all-wheel drive, 221kW EQA 350 is Mercedes’ MBUX infotainment system, Add to that AMG pedals, illuminated due next year. including voice control and 10.25-inch door sill panels, Edition 1 floormats, The EQA can charge on AC at up to 11kW, centre touchscreen. and a unique vehicle key with copper- coloured surround. and on DC at up to 100kW. The latter is the hub for functions like It can pre-condition the battery for navigation, media playback, telephony What’s it like to drive? On our better fast-charging speeds as the car and vehicle functionality. relatively short taster, the EQA proved a comfortable, somewhat sporty, little navigates to a unit. A second 10.25-inch screen forms the unit. Mercedes throws in a generously-long driver’s customisable digital instrument eight-metre home charger and five- cluster. The ride soaks up most imperfections well, yet felt flat and composed metre type-2 cable as part of the deal. Other convenience functions include through open road corners. Charging and pre-conditioning the keyless entry and start, a powered interior can also be scheduled within tailgate with hands-free access, There’s some feel of the battery weight the car or through the Mercedes Me smartphone integration with Apple wanting to push the car wide in corners app. The system is compatible with CarPlay and Google Android Auto plus – it's hard to hide the physics of a Apple Homekit, Google Home and wireless charging for selected mobile battery just short of 500kg hanging Amazon Alexa systems. devices. under a smaller vehicle – but not to a point where the chassis set-up couldn't Echoing the EQC in design, the EQA Ther are also heated and electrically- cover it. features a black panel grille, divided adjustable front seats with memory into two by a louvre, highlighting the function, automatic climate control Seat comfort is excellent in the front, brand’s hallmark central star. including remotely actuated pre-entry and unlike some in this size range, rear seat space remains good. A horizontal fibre-optic strip connects climate control, synthetic-leather upholstery, and a leather-wrapped

AUGUST 2021 New Zealand 15 SHOWROOM PEUGEOT CELEBRATES ‘NEW STATUS’ AS IT LAUNCHES EVS

eugeot’s local agent Auto Distributors says it now has a “new status” within the brand’s structure with the Pannouncement of emissions standards and rebates for New Zealand. It confirmed that at a local “deep-dive” to launch Peugeot’s first full battery-electric vehicles, the e208 and e2008. Chief executive Chris Brown says Peugeot’s parent company Stellantis wants to avoid paying any penalties in countries with emissions standards, so having such a scheme moves New Zealand up the supply queue. “Our status changed with the factory when the Clean Car Standard came through,” Brown says.“ Stellantis say they do not want to pay any penalties.” iOWN finance scheme, payments starting at $165 a week with no deposit for the e208 and $199 for the e2008. Brown noted the controversy around the measures but believes the impetus for change is there. We enjoyed a short drive of both vehicles in central Auckland, and though it was too brief to learn much, both “Government is just an outcome of the people’s will. This cars impressed. change is the result of a government we voted in. The focus of power delivery appeared to be more on mid- “People are ready to change, they want to take the next range torque than outright speed and zippiness. step themselves.” Steering and drive felt sporty and engaging, and the That means better volume for battery electric and plug-in suspension is well tuned to cover the battery’s weight. hybrid vehicles. The hope is that with sufficient supply, and Brown expects the cars to make up around 55% of volume by 2026, Peugeot can maintain a position of having the lowest emissions of any brand in the market. “With our volume and business, we want our C02 emissions to go low, under 99 grams per unit by 2022,” says commercial manager Arek Zywot. Maintain? The target is not to hit 99 grams by 2026, but by 2022, taking Peugeot from number four lowest emissions brand last year to the number one position. Specialists in “All of this is possible as long as supply meets demand,” pre‑shipment inspections Brown says. A range of electrified hardware is coming to help. in Japan & UK Peugeot already has a PHEV 3008 SUV, with PHEV versions  Full border inspections of the 308 and 508 under consideration. Fully- electric versions of the Expert and Partner van  Authorised MPI inspections are expected to arrive next year with 75kWh and 50kWh batteries respectively.  Authorised NZTA inspections Stellantis itself has dedicated electric platforms under development with 500 to 800km range potential, and five  Odometer verification electrified vehicle Giga factories under development. All  model lines will have an electrified option by 2025. Pre-export appraisal E208 AND E2008 ARRIVE  Vehicle history reports The first full-EVs for the brand here are the e208 small hatchback and e2008 SUV. Both share the same drivetrain, a 50kW battery with 11kW AC and 100kW DC capability. Both have power outputs of 100kW and ranges starting from 320km. The e208 sells for $59,990, and the e2008 for $69,990, and both are eligible for the full Clean Car Discount rebate. JEVIC NZ In partnership with Heartland, Peugeot has launched an 09 966 1779 www.jevic.co.nz

16 New Zealand AUGUST 2021 IT AIN’T EASY BEING GREEN

They were things like, “what can I do to No, it’s got everything to do with what reduce emissions now?” you eat. Avoid beans. And swedes. But Or “is there a test for emissions?”, mainly beans. and “who can help me with reducing And there were also the commentors emissions?”. who told us to stop shoving EVs on GREIG EPPS them and reminding us that EVs run ADVOCACY & STRATEGY We posted these questions, and a MANAGER AT MTA link to some answers, on Facebook. on coal-fired electricity and telling us Honestly, we’re just trying to help. there are heaps of worse countries out there. Our research showed these sorts of ctors are always told that they questions came from people who It wasn’t all doom and gloom though. shouldn’t read the reviews of wanted to do something to improve Amid the fart jokes and the people who their latest show. A their carbon footprint, but who felt didn’t actually read the information we Maybe trade associations need to that they couldn’t afford an EV or even posted (but left a comment anyway), avoid reading the comments on their a newer, lower emission vehicle right there were people who got it. Facebook posts? now. There were people who agreed that a There are three elements to MTA’s We put together some practical tips, well-tuned car with properly pumped response to the Climate Change like keeping your tyres at the correct tyres provides a much cleaner drive Commission’s Final Advice and our pressure and having key elements than a car left to deteriorate. recommendations to Government in of your engine serviced, tuned, and So, though it can be a painful developing emission reduction plans. maintained to improve fuel efficiency. experience, there was a silver lining in First, are EVs the only way right now to What we really liked about the message some of the comments. reduce emissions? – keep your vehicle well maintained – And it won’t stop us from continuing Second, what can we do to run the was that it lined up with our standard, to push for better owner awareness existing fleet better? all-day-every-day message about of vehicle maintenance for reasons of Third, what will we do with end-of-life vehicle safety. safety and for the environment. vehicles? A well-maintained car would improve It ain’t easy being green, so it’s a We’re currently trying to answer the your fuel efficiency (reducing emissions) good thing we have members doing second question – what can we do to and monitor the safety of your vehicle. a fantastic job under the Bright Blue reduce emissions right now? That’s when I made the mistake of Badge. We road-tested some concepts with checking the comments. consumer groups and felt confident Apparently, reducing emissions has that the general public had questions got nothing to do with a well-tuned it wanted answered. vehicle or sensible driving.

AUGUST 2021 New Zealand 17 CRAWFORD’S CASE BY DAVID CRAWFORD | CEO MOTOR INDUSTRY ASSOCIATION THIS TIME THE DEVIL IS IN THE DETAIL

he devil is in the detail is a 5 and NEDC testing. • Allow all three testing protocols now phrase industry uses a lot Guess what standards cars destined for (enable WLTP three cycle testing Twhen responding to officials on New Zealand are complied to? That’s in addition to NEDC and WLTP four proposed regulatory changes. right, more than 90% are to Euro 5 cycle). The clean car policies, sadly, are with a small amount to Euro 6b, both • Liaise with industry to arrive at illustrative of this truism. of which use the NEDC testing protocol a date when WLTP testing for There seem to be many areas where for exhaust emission data. new model new vehicles can inattention to detail, failure to fully It appears to us that officials also be introduced (ties in with the understand linkages between various failed to fully appreciate the linkages Australian timeline). standards, and not appreciating how between Euro 5, Euro 6b and Euro 6d. • Liaise with industry on a later date regional markets work, leads to less WLTP testing is required under Euro 6d, for when existing models transfer to than accurate advice to government but not under Euro 6b or Euro 5. The WLTP only testing. ministers. New Zealand market can’t go lock stock • Align those dates with the When officials noted in their advice and barrel to Euro 6, let alone Euro 6d introduction of Euro 6d, noting the to the minister that WLTP testing had until Australia does. linkage of the New Zealand market been required in Europe for some time Why? See above. We don’t have a to the Australian market. and in Japan from 2021 – which on unique New Zealand market. To boot, Did officials get all their advice wrong? the surface is correct – they failed to there are issues with fuel quality No, not by a long margin. However, put it in context. standards too that need to be resolved not fully understanding market WLTP testing is required for vehicles first. dynamic and linkages between various entering those markets, but vehicles Detail, it is important. standards can have significant negative made for other markets are tested to unintended consequences which This, in the MIA’s view, less than what is required in those markets. undoes all their good work. accurate advice led to Cabinet agreeing This led to several other less than that WLTP testing will be required for Hopefully, we can address some of accurately formed bits of advice, as new vehicles from January, 2022. these important details once a Bill is their advice implied that since WLTP introduced in late August. The consequences of not revisiting this testing is required in Europe and now decision are significant. If this decision Our understanding is that Cabinet is Japan it can be implemented here for isn’t reversed come January 2022, likely to consider a cabinet paper on new vehicles from 2022 onwards. more than 90% of current new vehicle the contents of a Bill in early August Wrong. models will no longer meet compliance and if so, will be asked to agree to the Why? Because it seems to us, they rules, and our sector will shut Bill being introduced by the end of the assumed there’s a unique New Zealand down. Surely this isn’t the minister’s month. market and manufacturers will be able intention? We’re hearing that once it’s at select to switch easily to testing under the The MIA’s solution is simple and committee there is likely to be a period WLTP protocol for fuel consumption and effective. of 10 weeks for submissions before it’s CO2 data as opposed to NEDC, because referred back to the House. Currently, under the Land Transport that’s already done in Europe and Rules, vehicles can be complied if Last month, I noted that I thought Japan. tested to NEDC or WLTP four cycle (what the Bill and regulations for penalties The accurate advice is significantly is used in Europe). under the feebate scheme wouldn’t different. In effect, there’s no such be ready for a January 1, 2022 start Vehicles tested in Japan use the WLTP thing as a New Zealand market. date. Over the last month I’ve seen three cycle protocol which isn’t yet nothing to change my view. Our market is the Australasian (read provided for under our Rules. The MIA’s Australian) market. In Australia, the view is that the Government needs to: Australian Design Rules (ADR) is for Euro

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18 New Zealand AUGUST 2021 LEAD, TEST DRIVE AND SALES BY SOURCE JULY 2021 (VS JUNE 2021) BY MATT DARBY

uly was yet another solid month in the automotive space July saw a noticeable jump in Sales activity across AutoPlay with Leads and Test Drives at similar volumes to June and customers with a total monthly increase of about 10% from JSales 10% up on the month prior. June to July. In July, leads from ‘Web – Classified’ sources dropped by Much of this was fuelled by a significant increase in Sales 0.4% and leads from dealers’ websites dropped 10.9%. attributed to ‘Dealership Visits’ which increased by 27.5% from June to July. ‘Brand’ leads dropped out of the top three lead sources for the first time in recent memory, being replaced by ‘Dealership As always, ‘Dealership Visit’ is possibly a somewhat Visit’ which increased by 6.6% from month to month ambiguous way to track lead sources but remains a popular choice amongst AutoPlay customers. SOURCE LEADS Sales from ‘Web – Classified’ leads increased by a modest Web - Classified 3.0% (vs 3.0% increase in June) 1.7% and Sales from ‘Web – Dealer’ leads decreased by a Web - Dealer 6.4% (vs 6.4% increase in June) similarly modest 1.7%. Brand 6.6% (New entry to top 3) SOURCE SALES July 2021 vs June 2021 Web - Classified 1.7% (vs 8.6% increase in June) Test Drive activity across the board was higher in July than Dealership Visit 27.5% (vs 0.2% increase in June) June with ‘Dealership Visits’ increasing by 6.6%, Test Drives from ‘Web - Classified’ sources increasing by 7.3% and Test Web - Dealer 1.7% (vs 2.4% decrease in June) Drives from ‘Web -Dealer’ leads increasing by 2.0%. July 2021 vs June 2021 SOURCE TEST DRIVES As the Olympics go on, make sure to check out next month’s Autotalk article to see which Sources finished in Dealership Visit 6.6% (vs 1.3% increase in June) Gold, Silver and Bronze in August 2021. Web - Classified 7.3% (vs 4.6% decrease in June) Web - Dealer 2.0% (vs 4.9% decrease in June) July 2021 vs June 2021

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AUGUST 2021 New Zealand 19 VINSEN'S VIEW

DISCLAIMER: THIS IS THE OPINION OF THE WRITER AND IS NOT NECESSARILY THE OFFICIAL VIEW OF VIA BY DAVID VINSEN | CEO OF VIA “WHO OWNS YOUR CAR?”

here’s an old saying that There have been recent Court cases in insisting on ownership of IP and limiting “possession is nine-tenths of USA and other jurisdictions, where the access to information. Tthe law”, so you could naturally manufacturers, (the Original Equipment In Europe, the latest Euro standards presume that if you have bought your Manufacturers, or “OEMs”), have argued for vehicles require the manufacturer vehicle and have possession of it, then that they own the IP to the vehicle, to provide third party workshops with you own it. and in effect they control the vehicle open access to specifications, repair So “who owns your car?” may throughout its life, regardless of who is information and parts, otherwise seem like a silly question, but the the nominal owner. the vehicle will not comply with answer may not be as simple and This seems like a very esoteric argument, the Euro standard. This requirement straightforward as you think. There are but it has important ramifications for has advanced the "Right to Repair” several possible answers, and there are the motor industry and retail customers. movement in Europe. also a number of possible owners for A couple of examples of American Closer to home, a Bill is being each car. vehicles come to mind. introduced to the Australian “Your car” could mean the company John Deere, the agricultural equipment Parliament requiring OEMs and their vehicle you are provided as part of an manufacturer, has argued that it owns national distributors to provide access employment agreement, in which case the IP to its tractors and equipment, to repair information. And where your employer, or their finance or lease and my understanding is that they Australia goes, New Zealand often company would be the technical owner. will not provide parts, specifications or follows. So, it’s likely that New Zealand If “your car” is privately owned, the information that will enable the vehicles will have some sort of Right to Repair simple and obvious answer to who owns to be repaired or serviced by third-party requirement. it, if you’ve paid cash for it, is that you repair shops, or by the farmers who The Right to Repair is one concern own the car outright, and that no-one thought they owned them. John Deere that arises from the OEMs’ position else has any interest in it…apart from wants the vehicles to be returned to on continuing to own the IP for their your insurance company! their official franchised workshops or vehicles, even after the vehicles have But you may have purchased the vehicle service departments. been sold, sometimes several times. on a hire purchase agreement, in which In many cases, this would entail The other key issue that arises relates case the agreement provides for you to significant additional costs, as the to the data that is generated by the only be the “conditional purchaser”; the equipment would need to be trucked operation of the vehicle. All modern actual purchaser is the finance company off the farm to the official service vehicles have comprehensive ECU that provided the hire purchase finance. department, would be out of action and computer systems to control all The vehicle does not formally become for some time, and the service costs functions, with some vehicles having yours and title pass to you until the would undoubtedly be greater than if several separate computer systems. The payment of the final instalment, or the farmer himself or a local workshop systems generate significant amounts of outright settlement of the hire purchase did the service or effected the repairs. data about the use of the vehicle and agreement. All in the interests of the manufacturer the driver, and the issue in contention is Even as a private “owner”, your vehicle wanting to control its IP. “who owns the data”. could be subject to a lease agreement: Also in the USA, Tesla has argued that it My understanding is that almost all new either an operating lease or a financial not only owns the IP, but also controls vehicles sold in New Zealand feed the lease. So, the ownership of a vehicle is the vehicle itself; the purchaser only has data generated and collected directly not as straightforward as it might seem. a “licence to operate”. This is very much back to their overseas manufacturer, But that is not the key premise of this along the line of thinking that a Tesla in the country of origin. As we move column. Regardless of the means of is a “computer on wheels”, with the more and more into a digital age, the retail purchase, the question I want same software licensing arrangements collection, analysis and use of data is to ask is “was the vehicle able to be as a computer. Tesla reserves the right to a serious matter, involving issues of sold to you?” Who owned it? And I’m modify the software in the vehicle “on commercial benefit and privacy. not referring to securities registered the fly”. Part of Tesla’s argument is that So “who owns the vehicle” is against the vehicle, or the Personal they do not want third parties to make more than a rhetorical question. Property Security Register, the PPSR. unauthorised changes or modifications It is a serious question for our which might adversely affect the I’m referring to a more basic question, times, relating to issues of privacy, vehicle’s safety and performance of who controls the interests in the intellectual property, commercial characteristics. manufacture, distribution, importation, benefit and competitive advantage. wholesaling and retailing of the vehicle. This issue is at the heart of the “Right to In New Zealand’s case, it also has the This is an issue that is being raised Repair” movement, which is gathering propensity to shine the spotlight on more frequently and focuses on the very momentum in Europe, the USA and the rights and responsibilities of both essence of the vehicle: its Intellectual now in Australia. This initiative has new and used vehicle importers. Property (“IP”), and who owns it. come about in opposition to the OEMs’

20 New Zealand AUGUST 2021 LEAD MANAGEMENT FOR SMALLER DEALERS – GREAT THINGS CAN SOMETIMES BE FREE

here’s no doubt Tthat a platform like AutoPlay is the benchmark ANTHONY MACLEAN lead management FOUNDER OF BOOSTAUTO system in New Zealand. power of the platforms as well as spend It’s easy management time to get the sales team to use, on-board. integrates And you may have to tweak some well with internal processes to integrate them. Trade Me and But any dealer who thinks But I guarantee setting one of these your CRM, and has solid reporting salesmanship is more important than boards will improve your sales rate – for sales managers and DPs, and is sales process is deluded. or your money back! available on desktop or as an App. Process will make a decent salesperson Last but not least, any business owner But what if you are a smaller dealer, better and a great salesperson a doesn’t need a crystal ball to see that whose volume doesn’t justify the superstar. Who would you rather have? the market won’t remain as strong as it monthly fee? A solution is at hand, and it’s free. is now forever. What are your options, and is there There are lots of online T-Card systems When the market is strong poor anything that, say, does half the job for (sometimes called Kanban) which with practices get masked by strong results. almost no cost? 60 minutes’ work you can set up as So, do yourself and your business a a sales process capture and mapping Well, you’re in luck. But before I dive favour by getting the competitive edge. board for your business. in and tell you what I think are great Introduce or update your lead solutions, ask yourself these pre- They aren’t specifically designed to be management processes now and reap qualifying questions. sales, but they work well. the rewards. You’ll thank yourself for 1. Do you need a lead management In Kanban you have boards, rows, and reading this article and acting when system? cards. The board is your dealership. the market gets tougher. 2. Will you take time to support and Rows are a lead state (like new enquiry, Boost Auto has a link to a sales nurture your staff? or pending finance, or test drive) and template designed for local car and each card is a customer. 3. Can you accept that you can’t have motorcycle dealers. everything you want when something You then drag the card between You can access it by scanning the QR is low cost? the states, so you have a visual code below. You’ll need to join Trello representation of what state each 4. Do you want to be in a stronger and remember once you have logged in customer enquiry is at. position than your neighbours when to your copy, switch it to private. the market turns softer? There are lots of Kanban boards to Boost Auto can set up Trello for your choose from. Monday.com is really I’ll take a moment to answer the first business and book you and your team great; there is Wrike.com and my question. It’s totally related to the last into a Zoom training session at a favourite, Trello.com. question. special Auto Talk rate. I get no payment or commissions from A straw poll of motorcycle dealers and any of these platforms. smaller used car dealers shows that there isn’t a very high standard of Trello is great because it’s easy to set lead management in dealers. up, and you can create automations and integrations with Gmail and When I looked for a replacement car Outlook. You can also send email from this year, I didn’t get a single follow-up within Trello, so you have a record of all call from the five or so dealers I visited. correspondence in one place. Some dealers (quite a few from my I love the way you can populate non-scientific survey) weren’t capturing automatically a lead into Trello with my information for follow-up yet were one click. Trello even allows you to Boost Auto is an automotive probably spending money to generate allocate randomly that lead to one of consultancy working in five main areas. leads. your sales team (so they all get their 1. Sales and marketing effectiveness for It begs the question, why? They would fair share of leads). brands and dealers. be more cost-effective getting fewer All the options above have similar leads and following them up properly. 2. Green fleet facilitation for large integrations, and Monday is slightly corporates. You can guarantee that their sales easier to use with a cleaner interface conversion rates were low (and almost 3. Go to market strategies for emerging than Trello – but it costs money, while brands. impossible to measure accurately, Trello is free. because, well, they weren’t capturing 4. Market insights. But free doesn’t mean no set-up. All of the data). the above systems are straightforward 5. Business Ppanning and facilitation. Some dealerships believe sales is an to set up once you know what you’re You can contact us at hello@ art. There’s no doubt that the right doing, but they also require an boostauto.co.nz personality can make a real difference. investment of time. People buy from people they like. You need to learn about the quirks and

AUGUST 2021 New Zealand 21 AUTOSURE’S NEW LOGO –

DEALERS LOVE IT! BY JAMES SEARLE GENERAL MANAGER, DPL INSURANCE LTD e were incredibly proud to foundation we've established LOOKING TO THE FUTURE launch our new logo to the for Autosure and aligns with the This is a very exciting time for Autosure! industry on 1 July 2021. progressive plans we have for our W The roll out of the new logo is going business in the coming years. really well. Dealerships are snapping We’re pleased that it works so well up our new collateral and promotional with the look and feel we’ve developed products. for the brand, which is making it very And it’s great to see our new logo easy for our agents and customers to flying on flags in yards all around New It's a great evolution for our brand transition. Zealand. and remarkably is only the third WELL RECEIVED significant change to the Autosure We're looking forward to continuing And the reception from dealers, brokers logo in the last 35 years. to work with our partners, in the and other business partners has been A GREAT STEP coming months and years. Building fantastic! from our strong foundations and While Autosure is a leading provider in Autosure has been part of the family for delivering more innovations, while the industry and highly regarded, we many dealers for many years. They’re maintaining our customer focus and recognised that it was time to evolve proud to provide an opportunity for strong service ethos under our new our brand. their customers to take out our policies. logo. We’re very excited to have this new Knowing we’ll be there for them when If you’d like to find out more about logo and believe it’s a fantastic fit they need us. So we really wanted to what Autosure can offer you and your for our business now and into the make sure this would work for all of customers, please call us on 0800 267 future. our partners and customers. 873 or contact your local Autosure The new design is modern, clean And we’re very pleased that it has. See Account Manager. and fresh. It builds on the strong for yourself in the comments below:

What a great new logo. Looks great. Well done!

Congratulations for the All happy with the new success of the new logo Autosure Logo, much more branding – love it :> professional.

Loving the new branding AutoSure, changing their team. Great work. logo as they're an insurance company that keeps up with the times. When the rubber Very flash....we like! hits the road, Autosure lighten the load.

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Find out more at autosure.co.nz | Confidence for the road ahead

22 New Zealand AUGUST 2021 JAPANTALK OLYMPIC-LEVEL COMPETITION AT AUCTIONS

here have been mixed fortunes for the vehicle industry Of interest over the past in Japan as the July summer heat and Olympics finally few months has been the Tgot underway. appearance of volumes of They were accompanied by a modest increase month-on- brand-new or delivery- mileage only commercial vans month of new vehicle registrations, the long-awaited BY GRAEME MACDONALD release of a popular model update, and strong competition in the auction lanes, with a for used vehicle stock troubling Kiwi buyers. number finding their way into Kiwi buyer shopping carts. July new car sales (excluding Kei-class) totalled 123,616, a slight decrease of around 750 units compared to the previous Even at a little over Y2,000,000 to Y2,500,000 FOB, Nissan month. NV350 and Toyota Hiace vans are finding a market niche here in New Zealand in a market struggling – just like cars – to But Kei-class registrations were well up on 89,091 compared find enough stock. to 73,843 during June. It would also appear that the older European market has The total of 212,707 units saw an additional 13,700 vehicles moved up a gear, with Kiwis again keen to target early- registered month-on-month to rank as the best monthly mid 2010s Mercedes-Benz, BMWs and Audis, available in sales since March 2021. moderate numbers at seemingly reasonable prices. Semiconductor chip shortages have continued to cause Biggest news for the end of July, though, was reserved for production delays and rescheduling across the industry. those Kiwis hardy enough to consider the 40-series FJ Land Given the backlog of orders for many popular models, our Cruiser the final word in off-road ruggedness. statistical analysis uses registrations, rather than orders or Toyota Japan announced that its “Heritage” division would “sales”, reflecting the lead time between a successful sale start the reproduction of components to keep the venerable being made at a dealership and the actual delivery date. warriors on the road or assist with restoration. Yaris, Yaris Cross and RAV-4 sales appear particularly affected, Toyota joins the likes of Nissan manufacturing new parts for while Nissan has struggled with model delivery cycles and the Skyline GT-R BNR32, and Toyota for the JZA80 Supra. possibly even the delay of the new X-Trail until the crisis abates. With the Olympics in full swing at the end of the month and Tokyo battling a fresh wave of COVID-19 Delta variant At the time of writing, individual model registrations for July cases, August will be an interesting month to watch! were yet to be published, but in June, the top selling model once again was the Toyota Yaris/Yaris Cross followed by the Toyota Roomy. Predictably, eight of the top-10 selling new cars were from Toyota, broken only by the Nissan Note and the Honda Freed. Independent Given its popularity with Kiwi buyers, worth noting was the release on July 13 of the new fourth-generation Toyota Aqua. Inspections Aqua sales have been eclipsed by the new Yaris and Corolla during 2021, averaging only 3353 per month over the first half Shipping & Logistics of the year. What more would you need? So, it will be interesting to see if buyers return to this well- known badge, thus causing a cascade of good trade-ins that buyers here in New Zealand crave. Clean Car Discount scheme architects in New Zealand have little good news to bolster their ambitions of used EV stock increasing in volume out of Japan. The Nissan Leaf averaged just new 667 units sold per month for the six months January to June 2021. In the used sector, July buying got tougher as the month progressed. Clearly influenced by a combination of new vehicle delivery issues and a strong Japanese market appetite for good pre-owned stock, the second half of July was notable for a lack of really good vehicles to buy Painfully high prices were realised when they did appear at auction. We pride ourselves on our independence There have been discussions for some time that the New Moana Blue understand the importance of being independent. Zealand marketplace will need to accept pricing shifts We are not in the business of buying or selling vehicles or any upwards as 2021 progresses. other service that competes with our customers. If current indications are the trend, it may well be that Kiwi Our aim is to simply provide a fast and efficient service of consumers are going to pay more on the dealership for their independent shipping, inspections and advice. choices, especially hybrid stocks in late 2021 as Japanese auction prices are pushed up to absorb the proposed rebates. Cheaper, lower grade or fleet stock was in better supply during July, although competition from Kiwi dealers unable to source enough higher-grade stock spilled down in to the “white and silver” lanes too. 0800 MOANA BLUE | www.moana-blue.com

AUGUST 2021 New Zealand 23 “PROOF OF PROCESS – YOUR OBLIGATION IS TO DISCLOSE CORRECTLY” “More

his column follows on from my past articles regarding “Meeting cover Tyour obligations of Disclosure” and “Responsible selling of finance and insurance products”. It’s equally important to not only understand your obligation to disclose than correctly, but also that you can confirm that the process was undertaken. JACQUES GRAY A record of the process is required to be kept by the retailer offering the Insurance expected products on behalf of an Insurer, under instruction from the FMA (Financial Markets Authority). These days there’s so much regulation to which we all need Not long after buying my new car, I drove to conform to meet the requirements of The Fair Trading Act, into our local petrol station to fill up. The CCCFA (Credit Contracts & Consumers Finance Act), the Anti Money Laundering Act, and the list goes on. My mind was on the three kids in the To protect their businesses and the rights of their back seat as I paid and returned to the customers, Registered Motor Vehicle Traders need to upskill themselves to make sure they comply will all regulations. car. Just before I turned the engine on, Under the Responsible Credit-Related Insurance Code, the I realised that I’d made the mistake that Responsible Lending Code, and the CCCFA, I’d like to reinforce to all traders, lender’s and Insurer’s agents alike, the need people new to diesel vehicles often make. to undertake correctly disclosure of any product offered to your customer. Filled up with petrol. Traders, lender’s and insurer’s agents have a duty to offer only fit for purposes Insurance products, and to disclosure all the relevant information in a simple and easy to understand I’d heard of friends making this innocent format. Customers can then make an informed decision on mistake. whether to enter a credit or insurance contract, and if the insurance product offered is likely to suit their circumstances. Thankfully I didn’t switch the engine As a responsible lender or insurer’s agent, you have a duty to on. The burger bar next door took advise what products are on offer, and how they’re designed care of the kids’ hunger while I rang to assist and protect customers. To be compliant, you also need to confirm that any offering Provident Insurance. They talked me was made under the correct process, and you hold a record through everything, he was so helpful. It of customers’ acknowledgment of the process. When offering Insurance products, you need to offer your happened on the Wednesday and I had customer an insurance summary of each product as part of my car back on the Friday. Provident any quote. This summary also needs to refer the customer to a policy Insurance covered everything including booklet for the full terms and conditions of the Insurance the towing.”– Priya Bhasin product on offer. Ensure that your initial disclosure summary of products includes the following information to your customer: Trust Provident Motor Vehicle Insurance. - The key benefits and features of each Insurance policy. Proven protection to keep you on track. - The key exclusions of a policy. - The amount of the premium. - There may be interest charged on the premium. - Advise that the policy is optional. - The duration of each policy. - The cooling-off period for each policy. www.providentinsurance.co.nz to page 24...

24 New Zealand AUGUST 2021 SHOWROOM FORD SLASHES $20K OFF TRANSIT PHEV

ord New Zealand has announced (PHEV) in New Zealand and cars are that from August 1, the Transit available for customer appraisal at FCustom PHEV panel van will sell dealerships, with orders being taken for less than $80,000 to qualify for the now for the first shipment. clean car discount threshold. The base Escape PHEV will retail Ford had listed the van on its website from $60,990 plus on road costs and at a recommended retail price (RRP) statutory charges, while the upscale of $99,990 plus on road costs – which Escape ST-Line X PHEV will start at means Ford is cutting more than $66,990. Both qualify easily for the $20,000 off the RRP to qualify for the clean car discount rebate. government rebate. Both offer a pure electric driving range Ford NZ managing director Simon of up to 59km and charging time ranges Rutherford says he hopes the move will from two hours on a commercial type-2 increase the model’s sales. AC charger to six hours from a domestic seat heating, and the sport suspension Ford dealers are taking orders for the 230-volt 10-amp power supply. with 19-inch alloy wheels. Transit PHEV and newly released Escape We drove the Escape ST-Line X PHEV Though it’s nice to have the latter’s PHEV for delivery this year. briefly and were impressed by how sharp steering and handling, it feels Rutherford says supply of Transits from simple it was to operate. a bit superfluous in a vehicle that’s the Ford Otosan joint-venture plant Drivers can choose from four driving been designed to maximise fuel in Turkey has been sporadic because modes: EV Auto, EV Now, EV Later, and efficiency and minimise emissions. of the semi-conductor shortage and EV Charge. It couldn’t get much simpler And the alloy wheel/low profile tyre shipping constraints. really. combination amplifies corrugations in “Production (of Transit) will lift in the The ST-Line X is appointed very the road and tyre noise on chip sealed fourth quarter, and we hope to retain generously for the $6k increase on the roads. our leadership in the light commercial base model, offering plush upholstery, Ford has nine Escape PHEVs in the market,” Rutherford says. climate air, electric moonroof, country for customers to appraise at The all-electric E Transit will arrive in powered hands-free tailgate, B&O selected dealerships, and there’ll be an the second quarter of 2022 but will audio system, wireless charging, auto initial shipment of 30 cars with more to sit outside the feebate structure, says park-assist, tyre pressure monitoring follow. Rutherford. and a Thatcham alarm. The order bank is being allocated FORD MAKES A PHEV ESCAPE The two areas of the ST-Line X that were strictly to signed orders only. Ford less impressive, however, were the says. Ford will sell two variants of the front- lack of power adjustment on the front wheel drive Escape plug-in hybrid passenger seat, although it still offered

...from page 24 - A reference to review the full terms 1. It confirms that the offering was to Comprehensive Motor Insurance, and conditions of the policy. compliant, and that they have Mechanical Breakdown Insurance, Your customer can then make an explained all of the main benefits, Consumer Credit Insurance and informed decision as to whether the features and exclusions and limitations Guaranteed Asset Protection. following apply: of each product, and that the products Draw on those experiences and use were offered responsibly, and were fit - Is it likely the policy provided will some of them as testimonials. If you for purpose. provide appropriate cover for their understand how to deal with your personal circumstances? 2. Most Importantly, that there is a customers’ expectations, any concerns record of the correct disclosure process. or misconceptions of a product that - That they understand the terms and A verbal conversation (unless it was they may have, and you offer correctly conditions of the cover/policy on offer. recorded), is not a record, and it will your product’s benefits and features, - They have had sufficient time to not protect you as the retailer, should a the product will sell itself. consider the benefits of the cover/ customer portray later that you didn’t Remember, the offering of insurance policy. either offer them protection, or that the protection makes for a better customer I must again express how importance disclosure of a product and the process experience. “Insurance is the one it is as a mandatory requirement, to was not undertaken correctly. thing that you can’t buy when you’re in be able to prove that the disclosure As professionals, we should all take immediate need of its protection, if an process was undertaken correctly. disclosure seriously and we shouldn’t event has already occurred.” Therefore, you need to hold a record of preconceive the requirements of an If you or your staff need any training your customer’s acknowledgement to individual customer. or assistance to understand your this process. Unless you disclose all of the fit for responsibilities surrounding the Our dealers/retailers get their customers purpose insurance products that you disclosure of insurance products, and to complete an Insurance Disclosure have on offer to your customer, you’ll how to keep a complaint record of the Form in conjunction with the use of a have no idea of how you can assist correct proof of process, call me now detailed Insurance Product Summary and protect them, as a responsible and I’ll be happy to help. Sheet. retailer. Jaques Gray They obtain and retain a record of their Lastly, you will all know of customers customer’s signature which achieves who have enjoyed the benefits that two important things: Insurance cover provides in relation

AUGUST 2021 New Zealand 25 SHOWROOM ELECTRIFIED SKODA TARGETING 5000 SALES

koda New Zealand says its new iV models and the ongoing Spartnership to supply patrol cars to the police will electrify sales as it targets more than 5000 units by 2025. It says the first electrified iV model, the Superb plug-in hybrid electric (PHEV), has been well received by dealers, and police are testing one as a Prime One patrol vehicle. Skoda NZ general manager Rodney Gillard says in spite of production and shipping constrictions, new vehicle sales are outstripping supply, and he projects another three years’ brand growth on the back of the NZ police deal. And he says there’s been a huge and Europe and Gillard says the car’s speed automatic gearbox. positive mindset change by dealers introduction begins the roadmap for The lithium-ion's traction battery’s since the Clean Car Discount rebate’s the brand’s NZ electric programme. output is 13kWh and the cars will travel introduction. Four Superb iVs have been pre-sold to up to 62km on electricity alone. Six dealers are building new Skoda premium taxi operator Corporate Cabs In addition to the standard five-year premises. without even a test drive. 150,000km mechanical warranty, Giltrap Skoda in Newmarket, Auckland, More than 72 Skoda Superb Prime One Skoda offers an eight-year 160,000km is moving into bigger premises that patrol vehicles have been delivered to warranty on the traction battery. used to house Nissan, as did the new the police in less than three months, Charging the battery takes up to seven Miles Continental Skoda showroom in and one car is about to receive its first hours from an 8-amp 230 V domestic Christchurch. 15,000km service. power socket or up to 3.5 hours from a Farmer Motor Group is revamping its Gillard says another 350 to 400 Skodas 7kW 400 V Wallbox. Skoda showroom in Mount Maunganui will be delivered to the police in 2021 Although the Superb iV has a Type 2 and W R Phillips is opening a new and he believes deliveries for the next plug connection it can be charged Skoda showroom in Taranaki. few years will hover around 500 to 550. only from an AC supply and not a DC Robertson Motor Group is also Skoda NZ has ordered as many Superb fast charger. revamping its Manawatu Skoda iV PHEVs as it can get. Inside the car there are a few subtle showroom in Palmerston North. The Octavia iV PHEV is also destined to differences from standard petrol Gillard says the new vehicle market is arrive here in the second half of 2021. Superbs. The iV has an updated up 19% and though rental sales are The all-electric Skoda Enyaq SUV which instrument cluster to give more 40% down, private sales are up by the shares the same electric modular visibility to the electric systems, and same amount. platform as the Volkswagen ID.4 and the boot has a specific place to store Furthermore, internal research shows the Audi Q4 e-Tron, may arrive in charging cables. that 68% of current Skoda customers 2023. The Superb iV lets drivers choose from are interested in hybrid and electric “It’s a moving feast,” says Gillard. sport mode, electric mode, and hybrid vehicles. “First we were told 2025 by the factory mode, the last-mentioned providing a Though vehicle supply is challenging, then the date came back to 2023, but it range of up to 930km on a tank of fuel. Skoda NZ has had its best quarter yet, really is a case of watch this space.” Drivers can customise their travel to selling 100 more cars than previously. It SKODA’S NEW ELECTROMOBILITY ERA save electricity for city use at the end sold 191 in June, and Gillard reckons it of a long-distance road trip. will exceed 230 units in July. The front-wheel drive 160kW Skoda Superb iV PHEV sedan and wagon The navigation system provides In 2019, Skoda NZ sold 1450 units and range ushers in the brand’s new era of information on how much EV range is expects to reach almost 2000 in 2021. electromobility. available. “It’s been a challenge to get stock out Four Superb iV models are available In sport mode the electric motor boosts of the factory,” Gillard says. “With the locally – the Style iV sedan from the petrol engine, but in everyday semi-conductor shortage, the factory $72,990, the Sportline iV sedan from use the car defaults automatically to has been producing the cars, but then $76,990, the Style iV wagon from electric mode unless told otherwise. parking them up until the component $75,990 and the Sportline iV wagon At very low speed the e-noise modules arrive. Then they’re installed from $79,990. generator warns pedestrians of before shipping. All Superb iVs run a 1.4-litre the vehicle’s approach; and when “Fortunately, we have transparency of turbocharged four-cylinder petrol/ charging the car overnight the the stock at the factory, and we won’t electric plug-in hybrid powertrain with eManager can incorporate a morning sell a car to a customer until we know combined power and torque outputs of defrost and set a comfortable cabin it’s been shipped.” 160kW and 400Nm. temperature before the car sets off. The Superb iV is the first electric Skoda It drives the front wheels through a six- to be sold in an export market outside

26 New Zealand AUGUST 2021 SHOWROOM TUCSON PAVES THE FUTURE FOR HYUNDAI NEW ZEALAND

hough Australia will source its all- new Hyundai Tucsons from Korea, THyundai New Zealand general manager Andy Sinclair has decided to import NZ-bound cars from the Czech Republic. The reason is imple: emissions. If the Labour Government proceeds with its plan to introduce Euro 6 standards in 2022, Hyundai will be one of the few brands that can access compliant product relatively quickly. Initially, the new Tucson will be available with a 115kW/ 192Nm 2.0-litre petrol engine in front-wheel drive, and a 132kW/265Nm 1.6-litre turbocharged petrol (1.6T) or 100kW/320Nm 1.6-litre turbodiesel engine (1.6D) both with all- wheel drive powertrains. flurry of registrations at the end of 2021 older buyers are moving down from the An all-wheel drive Tucson Hybrid (HEV) before the Clean Car Fee comes into medium segment (Tucson) to the small and Tucson Plug-in hybrid (PHEV) will force on January 1, 2022. segment (Venue, Kona). arrive in 2022. The announcement of the Clean Car Sinclair says the medium segment The current range starts with the Discount on June 13 saw a rapid remains strong for buyers with a family, 2.0-Litre Tucson Active priced from increase of activity around BEV and but the powertrain mix is changing. $49,990 and includes the 1.6D Limited PHEV products on the Hyundai NZ Diesel is declining but hybrid and plug- priced from $72,990. website. in hybrid electric sales are climbing. The fourth generation Tucson introduces Sinclair says the cross subsidisation of However battery electric vehicles a new performance-oriented 1.6T low emission vehicles by high emitting (BEV) so far account for a very small N-Line priced at $68,990 which is vehicles will increase the mix of BEV percentage. the same price as the 1.6T Limited, and PHEV in the national fleet. DRIVING IMPRESSIONS giving customers a choice of luxury- or Though that will eventually change the Hyundai has covered all the bases sports-focused models. national fleet mix, it won’t impact the with the new Tucson range, from the Sinclair says Hyundai NZ ran out of the 3.3 million light vehicles now in the fleet focused 2.0-litre Active, to the previous model Tucson late in 2020, fleet. performance focussed 1.6T N-Line to and supply issues with that vehicle and Although Hyundai NZ has received a the luxury 1.6D Limited. the Kona have affected around 2000 consistent supply of vehicles from the To introduce the new Tucson, media sales this year. factory: “it’s always a few hundred were taken on a Tucson Taranaki tour. The reason for the lack of Tucson stock units fewer than what we’d have The drive started in New Plymouth was a combination of being caught out liked”, Sinclair says. and went through Stratford on to by post pandemic demand coupled “More than 95% of the vehicles State Highway 43, through the historic with the semi-conductor shortage and coming into the country’s wharves township of Whangamomona and the production changeover to the new are being shipped directly to the then to Taumaranui, returning to New model. dealerships, only a very small Plymouth via PioPio. Sinclair says the US market believes percentage are going to a holding In spite of some very wet unsealed that the semi-conductor shortage will yard.” roads on the Forgotten Highway, all of improve in mid 2022, and possibly in Sinclair says the private market now the Tucson variants performed well in late 2022 for our market. accounts for 46% of new vehicles, a challenging conditions, albeit looking a He predicts the new NZ car market will significant shift. bit dirty at the end of the drive. exceed 165,000 vehicles this year and And in a reverse of the national Unsurprisingly, the 1.6T N-Line with is being driven by consumer demand average, females make up 55% of its sports suspension set-up, offers not factory supply. Tucson buyers and males are 45%. The the best handling and steering “There’s no pre-registration activity dominant demographic for the SUV is response, but the 1.6D Elite and and there are no special deals being family buyers aged 30 and below. Limited were the most comfortable transacted by dealers.” Small, medium, large, and now upper all-rounders. He says it’s also likely there’ll be a large SUV account for more than 64% of Hyundai’s new vehicle sales in NZ, and

AUGUST 2021 New Zealand 27 SHOWROOM AUDI NZ SAYS A3/S3 STILL KEY FAMILY MEMBER

udi says the shoulder room, and has premium compact a more driver-oriented AA3/S3 family design. remains a key member It’s even more connected of its local range even than its predecessor, though SUV sales account offering traffic and for 68% of the market weather data through the while hatches take 26%. MyAudi account that must Audi New Zealand general be dealer verified. manager Dean Sheed There are three models. says the A3 is one of The $57,900 A3 35 TFSi the few Audi models Advanced is powered by considered by buyers who a 110kW 1.5-litre four- are also looking at more AUDI A3 cylinder engine allied to mass-market brands. a 48v mild hybrid (Mhev) Though the premium system which delivers compact segment isn’t added fuel efficiency of growing like the small 0.4L/100km. and medium premium Next up is the A3 40 TFSI SUV model sectors are, quattro S-Line powered it achieves more than by a 140kW 2.0-litre 2000 sales a year in New turbocharged petrol Zealand, and the A3/ engine and priced from S3 is the gateway to the $69,900. Audi brand for many The top-of-the-line buyers. $89,500 S3 quattro Sheed says Audi NZ with adaptive has enjoyed 40% sales dampers and sports growth so far in 2021, AUDI S3 suspension is powered with 975 vehicles retailed by a 228kW/400Nm in the first half, a 26% turbocharged petrol increase over the same of 2020 it delivered 1.793m. engine which delivers period in 2019. FOURTH GENERATION A3/S3 0-100km/h in 4.8 seconds. And thanks to the Tesla and Land Rover Audi introduced the A3/S3 in 1996 Audi NZ marketing manager Mark brands’ contribution, the premium and Audi NZ product manager Jarrod McCartney says the S3 is often market is up 60%. Ho says the new fourth generation is the gateway vehicle to the Audi He also notes the changing Audi buyer more of a sporting hatchback rather performance range for both new and profile: 42% are private buyers, 14% are than a mini-Avant wagon like the used car buyers. business, while rental has dropped 17% previous generation. Looking at the S3, he says more than and dealers have bought 30% fewer The high-performance RS3 arrives next 70% of buyers are male, more than cars. year, which Ho says is a “long time 79% live in the city or suburbs, and In June 2020 Audi NZ retailed 670 between drinks.” Audi hasn’t retailed they buy the car for its performance, units, a 46% increase. any A3s this year following the model’s design, technology, safety and This success has come in spite of the run out in 2020. reliability. supply chain being affected by semi- Ho says the S3 has been a stable McCartney says 54% of A3 buyers are conductor and shipping capacity contributor to sales as the RS models female and 78% live in the city or shortages. tended to arrive towards the end of suburbs. They’re not so bothered about At the end of June, Audi had two cars the model life cycle rather than at the performance, but design, safety and left in wholesale stock instead of the beginning which it will do now. reliability are their key requirements. usual 250 to 300. Audi dabbled with an A3/S3 sedan but In keeping with the female-centric Sheed says, too, that there’s a strong he says that was a “brief fling”. marketing skew, Audi NZ will global demand for all Audi models with In 2015 Audi NZ introduced the A3 collaborate on an A3 “activation” China and the USA the key markets e-tron plug-in hybrid which became a with its ambassador designer Juliette driving that. regular member of the model mix and Hogan at the 2021 New Zealand Fashion week. The first half of 2021 was the most achieved 180 sales. successful sales period in Audi’s history Ho says the fourth generation A3/S3 with 981,681 vehicles delivered: in all is wider, has more head, elbow, and

28 New Zealand AUGUST 2021 STATSTALK IMPORTS RECORD STRONG JULY Importing Cars. Made Easy.

sed import registrations delivered followed by the Toyota Prius on 527. Your trusted a strong performance in July, If there was a sign that the vehicle import Uwith a 10% gain year-on-year Government’s Clean Car Discount has according to provisional results. generated interest in electric vehicles, agent Registrations of passenger cars were it’s the Nissan Leaf. For more than 30 years up to 13,128 units from 11,953 this With essentially a month-and-a-half’s time last year, and up from June’s sales merged into one, the car hit 488 11,256 result. units, its highest month ever, giving it For the year, import passenger cars are fourth place. “Enquiry is good, sales are up.” up 15% to 75,268 units. Toyota was again the top commercials Though some of the enquiry is driven Commercial registrations had one of brand, down 4.3% to 246 units and a by increasing interest in EVs and their better months for the year, up 39.5% market share. Plug-in hybrids in the wake of the Government’s feebate announcement, 4.4% to 622 units from 596 this time Nissan took second on 133 vehicles, up Day is staying away from EVs. last year. 26.7% to 133, and in third, Hino was the The top passenger brand for the month top truck brand on 43, up 13.2% for a “I have sold EVs but I’m not going was Toyota, its popular hybrid models 6.9% stake. down that path. There’s a big interest in hybrids definitely – they’re just dominating the market and giving it Toyota’s Hiace was the top commercial a great product – but 100% electric a haul of 3697 units – a gain of 28.3% again on 174 vans, down from 333 this used cars have more hooks and barbs and a market share of 28.2%. time last year – the thin availability from a dealer’s perspective. Nissan took second on 1953, down 4.7% of electronic stability control models for a 14.9% share, followed by Mazda continuing to hit the market adv ersely. “The cost of batteries is significant if you get some which have battery on 1759, down 9.1% for a 13.4% stake. Nissan’s NV350 was next on 65, degradation. I don’t need that grief. Subaru was the fourth most popular followed by the Toyota Dyna on 33. brand on 1051, followed by Honda on PALMY DEALER SAYS BUSINESS IS “I only want to sell vehicles that I 1028. MOVING ONLINE think my customers can have a 100% pleasant buying experience and happy In the model charts, the Toyota Aqua Used car sales in Palmerston North were motoring with.” hit a massive total of 944 units, OK during June but July was “a whole Day is cynical about EVs appealing to opening the question of whether it will lot better,” says Peter Day Motors’ people for purely ecological reasons. hit 1000 units a month this year. dealer principal, Peter Day. “EV buyers? Not many want to save Mazda’s Axela was second on 611, to page 30... USED PASSENGER SALES 2015 TO 2021

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AUGUST 2021 New Zealand 29 STATSTALK ...from page 29 Fast Loan Approvals Manawatu. “If you’re going to get an $1800 kick- Flexible Repayments He says there are few used EVs are on back why would you buy an Aqua when it’ll be cheaper in 2020? Not many Personal Service the general NZ market and if demand escalates rapidly, prices will rise too. people would.” Get in contact today “If the demand goes up and the supply Moving on to stock supply, Day says 0800 367 233 isn’t there, people are going to be fewer new cars are selling in Japan paying a lot more money to drive a because of COVID. “(Japanese dealers (Nissan) Leaf. Our industry knows that; are) not selling as many and they’re the only people who don’t know are not trading-in many used cars. the Government. “There are only so many places you “At the moment, I think we’re better to can source cars in Japan.” the planet; most don’t want to pay for focus on hybrids sourced out of Japan.” Stock numbers on Day’s yard are down. petrol.” But with the shortage of stock from “We’ve got about half of what we would normally have. Usually, I have He agrees many early EVs adopters Japan, used hybrids will “go up in about 40 cars on the yard, and I’ve got “are into technology, they like to have price”. a bit over 20 cars at the moment. the latest tech – the same people who He says most people don’t want to buy bought iPhones when they first came a Toyota Aqua hybrid before January “But my sales are holding up – they’re out.” 1 when the feebate kicks in. Selling at the same level as when I had 40 Day says EVs might make sense in them before then is “going to be pretty cars on the yard.” big centres like Auckland, but that’s hard”. Day says he’s selling cars like Subaru not the case for people in provincial Legacys and Mazda Axelas, and the to page 31... USED IMPORT PASSENGER SALES BY MAKE JULY 2021 Fiat Ford Hino Total Total Isuzu Other Other Dodge Mazda Nissan Toyota Toyota Holden Chevrolet Mitsubishi Ssangyong Volkswagen Volkswagen

21-JAN 7 6 6 22 26 13 43 17 31 69 177 5 32 454 49 946 130 220 4180

20-JAN 11 5 66 40 26 14 26 41 25 200 345 8 40 847 46 683 119 241 3979

% diff -36 20 -91 -45 0 -7 65 -59 24 -66 -49 -38 -20 -46 7 39 9 -9 5

21-FEB 10 3 13 28 34 16 43 17 29 86 181 8 39 507 49 946 130 220 4180

20-FEB 13 4 12 21 22 12 41 26 18 211 430 9 48 864 46 683 119 241 3979

% diff -23 -25 8 33 55 33 5 -35 61 -59 -58 -11 -19 -41 7 39 9 -9 5

21-MAR 316 513 42 4 63 21 931 31 1469 189 463 1543 16 803 298 3166 560 572 11000

20-MAR 152 316 32 3 59 27 863 24 1276 100 335 1613 5 587 366 2165 269 373 8565

% diff 108 62 31 33 7 -22 8 29 15 89 38 -4 220 37 -19 46 108 53 28

21-APR 310 525 25 2 63 20 867 18 1370 192 428 1316 14 736 254 2926 514 554 10134

20-APR 17 32 3 1 2 1 56 4 78 13 24 119 1 46 25 145 18 37 622

% diff 1724 1541 733 100 3050 1900 1448 350 1656 1377 1683 1006 1300 1500 916 1918 2756 1397 1529

21-MAY 358 594 34 3 59 23 970 17 1552 211 507 1495 14 862 862 273 536 2885 11255

20-MAY 236 440 33 3 74 41 884 35 1564 124 387 1683 14 721 408 2128 343 447 9665

% diff 52 35 3 0 -20 -44 10 -51 -1 70 31 -11 0 20 111 -87 56 545 16

21-JUN 349 619 24 2 72 24 1051 19 1566 204 468 1385 15 889 278 3194 511 586 11256

20-JUN 295 537 35 5 86 40 1127 1 1922 184 486 2083 5 866 475 2786 433 587 11953

% diff 18 15 -31 -60 -16 -40 -7 1800 -19 11 -4 -34 200 3 -41 15 18 0 -6

21-JUL 371 660 34 6 55 28 1028 13 1759 244 654 1953 10 1051 319 3697 557 689 13128

20-JUL 280 526 41 4 88 37 1050 21 1936 184 585 2049 9 902 423 2881 439 520 11975

% diff 33 25 -17 50 -38 -24 -2 -38 -9 33 12 -5 11 17 -25 28 27 33 10

YTD 21 2187 3809 206 23 428 153 6527 142 10379 1364 3297 10273 95 5616 2483 18467 3576 6243 75268

YTD 20 1362 2568 217 20 482 201 6269 129 10416 846 2745 11817 54 4577 2748 15709 2174 2786 65220

%diff 61 48 -5 15 -11 -24 4 10 0 61 20 -13 76 23 -10 18 64 124 15

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30 New Zealand AUGUST 2021 STATSTALK

...from page 30 ratio of people trading in their old cars “Our business model now is a lot more Fast Loan Approvals instead of trying to get a perceived online, with online enquiries,” Day Flexible Repayments higher price on the private market is adds. Personal Service about 50:50. “We just don’t get people wandering Finance sales have been a “mixed on to the yard, and we’re selling more Get in contact today bag”. Business varies month-by-month cars out of town than in-town. 0800 367 233 with “no rhyme or reason” and low- I think there’s definitely a shift interest finance promotions have had towards online.” little effect. However, July finance sales levels had been better.

USED COMMERCIAL MODELS JULY 2021 USED COMMERCIAL MAKES JULY 2021 JULY JULY JULY JULY MARKET MAKE MODEL MAKE MODEL MAKE MOVEMENT % CHANGE '21 '20 '21 '20 SHARE TOYOTA HIACE 174 TOYOTA HIACE 333 TOYOTA 246 257 -4.3 39.5 NISSAN 133 105 26.7 21.4 NISSAN NV350 65 NISSAN NV200 66 HINO 43 38 Up 1 13.2 6.9 TOYOTA DYNA 33 NISSAN CARAVAN 65 ISUZU 35 44 Down 1 -20.5 5.6 NISSAN CARAVAN 26 NISSAN NV350 59 MITSUBISHI 35 24 Up 1 45.8 5.6 ISUZU ELF 23 TOYOTA DYNA 37 FORD 25 32 Down 1 -21.9 4.0 HINO DUTRO 22 MAZDA BONGO 31 HOLDEN 15 14 Up 1 7.1 2.4 CHEVROLET 12 13 Up 1 -7.7 1.9 MITSUBISHI CANTER 22 TOYOTA REGIUS 30 MAZDA 11 15 Down 1 -26.7 1.8 TOYOTA TOYOACE 20 ISUZU ELF 25 VOLKSWAGEN 10 4 Up 6 150.0 1.6 HINO RANGER 15 NISSAN ATLAS 23 OTHER 57 50 14.0 9.2 FORD RANGER 14 FORD RANGER 20 TOTAL 622 596 4.4 100.0

USED PASSENGER MAKES JULY 2021 USED PASSENGER MODELS JULY 2021 JULY JULY MARKET JULY JULY MAKE MOVEMENT % CHANGE MAKE MODEL MAKE '21 '20 SHARE '21 '20 TOYOTA 3,697 2881 28.3 28.2 TOYOTA AQUA 944 MAZDA AXELA 666 NISSAN 1,953 2049 -4.7 14.9 MAZDA AXELA 611 TOYOTA COROLLA 549 MAZDA 1,759 1936 -9.1 13.4 TOYOTA PRIUS 527 TOYOTA AQUA 484 SUBARU 1,051 902 Up 1 16.5 8.0 NISSAN LEAF 488 HONDA FIT 411 HONDA 1,028 1050 Down 1 -2.1 7.8 TOYOTA COROLLA 483 TOYOTA PRIUS 385 BMW 660 526 Up 1 25.5 5.0 MITSUBISHI 654 585 Down 1 11.8 5.0 NISSAN X-TRAIL 476 MAZDA DEMIO 378 VOLKSWAGEN 557 439 26.9 4.2 MITSUBISHI OUTLANDER 445 TOYOTA HIACE 376 AUDI 371 280 Up 1 32.5 2.8 HONDA FIT 409 SUZUKI SWIFT 352

SUZUKI 319 423 Down 1 -24.6 2.4 VOLKSWAGEN GOLF 364 MITSUBISHI OUTLANDER 340

LEXUS 270 182 Up 1 48.4 2.1 MAZDA CX-5 360 SUBARU IMPREZA 285 MERCEDES-BENZ 244 184 Down 1 32.6 1.9 SUBARU LEGACY 304 VOLKSWAGEN GOLF 281 VOLVO 82 79 Up 1 3.8 0.6 SUBARU IMPREZA 287 SUBARU LEGACY 273 FORD 55 88 Down 1 -37.5 0.4 TOYOTA VANGUARD 283 NISSAN X-TRAIL 259 LAND ROVER 41 43 Up 1 -4.7 0.3 JAGUAR 40 44 Down 1 -9.1 0.3 SUZUKI SWIFT 254 NISSAN TIIDA 255 PORSCHE 40 15 Up 6 166.7 0.3 MAZDA DEMIO 230 MAZDA ATENZA 254 JEEP 36 23 Up 2 56.5 0.3 MAZDA ATENZA 205 NISSAN LEAF 223 DODGE 35 18 Up 3 94.4 0.3 TOYOTA MARKX 202 MAZDA PREMACY 201 CHEVROLET 34 41 Down 3 -17.1 0.3 TOYOTA WISH 202 TOYOTA VANGUARD 184 OTHER 202 187 8.0 1.5 BMW 3 Series 197 BMW 3 SERIES 175 TOTAL 13,128 11975 9.6 100.0 NISSAN SKYLINE 168 TOYOTA WISH 169

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AUGUST 2021 New Zealand 31 STATSTALK

COMPETITIVE UTES, SUVS AND EVS FINANCE ON NEW VEHICLES PROVE POPULAR IN

BROUGHT TO YOU BY BUSY MARKET BY RICHARD EDWARDS

SUVs in July 2021 were up 21.8% (1784 with 10% market share (525 units). esla’s Model 3 and the MG ZS EV units) on July 2020, while commercial The Ford Ranger retained the top spot proved popular in the first month vehicle registrations of 5069 were up for the month of July as the bestselling Tof clean car rebates 24.8% (1006 units) compared to July commercial model with 28% share 2020. This is a record month of July for EV registrations were boosted in July (1,418 units) followed by the Toyota commercial vehicles. by the Clean Car Rebate – but SUVs Hilux with 16% share (809 units) and and Utes are still charging along at a The top three models for July were the Mitsubishi Triton in third place strong pace. the Ford Ranger (1418 units), followed with 10% market share (489 units). by the Toyota Hilux (809) with the July 2021 registrations were 15,053 The top segment for July 2021 went to Mitsubishi ASX (737). units, compared to 12,263 units for July the SUV Compact vehicles with 25% 2020. Year-to-date the market is up Toyota remains the overall market share followed by the Pick Up/Chassis 51.2% (33,790 units) compared to the leader with 16% market share (2434 4×4 segment with 16% market share first seven months of 2020. units), followed by Mitsubishi with and then SUV Medium with 15% share. 13% (1960 units) and Ford with 11% July and the first seven months of 2021 TOO FAR TOO SOON ON EV ADOPTION market share (1728 units). are the strongest on record. AND ICE PENALTIES Mitsubishi was the market leader for The introduction of the Clean Car New car sales enquiry is excellent, and passenger and SUV registrations with Discount (rebate) saw a lift in the sale business is good across Farmer Auto 14% market share (1435 units) followed of BEVs and PHEVs and hybrid sales Village’s multiple brands but getting by Toyota also with 14% (1357 units) remain strong. Year-to-date there are cars to customers will be a problem for and Suzuki with 8% market share (791 2377 passenger (not including light at least another 12 months, says dealer units). commercial vans) BEVs registered, principal Mike Farmer. compared to the same period last year The top selling passenger and SUV The culprit is the global shortage of when only 701 BEVs were registered. models for the month were the semi-conductors which are major Mitsubishi ASX (737 units) followed Overall, July 2021 registrations of components of modern cars, and it’s by the Toyota RAV4 (553) and the 15,053 vehicles were up 2790 units slowing vehicle production. Mitsubishi Outlander (365). (22.8%) on the same month in 2020. “It’s very much semi-conductors and In commercials, Ford retained the There were 760 pure electric vehicles, not so much COVID,” he says, adding market lead with 30% market share 431 PHEVs and 1163 hybrids sold for the that the shortage means carmakers (1546 units) followed by Toyota with month. are getting vehicles partly built and 21% (1077 units) and Mitsubishi third then having to stockpile them till the Registrations of 9984 passenger and to page 33... NEW PASSENGER SALES 2015 TO 2021

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32 New Zealand AUGUST 2021 STATSTALK

...from page 32 components arrive and the cars can be (ICE) vehicles, like utes. COMPETITIVE completed. “I don’t think we will see that until FINANCE ON He says electric vehicle uptake faces 2023 or 2024. NEW VEHICLES a different but equally significant “In my opinion, they could delay (the problem. date for the introduction of levies on BROUGHT TO YOU BY Interest in and demand for EVs ICE vehicles). They’ve got $300m in EV and hybrids has “most definitely” incentive funding, so exhaust that, but increased since the Government the penalties should be delayed for up announced the rebate scheme. to two years until viable alternatives “But across all of our brands, if are available that they can take someone wants an EV, we can only advantage of. V8s. “Demand is not reduced due supply a Nissan Leaf, an MG, a “At the moment, there are none. I to (the Government policies) at all. Hyundai... don’t disagree with the Government’s The biggest thing on supply is semi- “Across the whole (Farmer) group it’s campaign (towards EVs) in spirit, but conductors.” a pretty small list that we can provide the execution has been a little bit Farmer takes issue with the (straight away) that comply with the haphazard. Government’s “comments that 90% subsidies.” “They’ve gone too quick. They’re of utes are not required” and that In general, most brands have only one ahead of where the motor industry is many are used by city-dwellers as or two all-electric models. and the vehicle manufacturers are.” alternatives to cars. “I think the Government is going far Farmer says demand in his dealerships “I’ve never heard such ignorance in too early (in offering EV subsidies is across the board, rather than being my life. and penalising internal combustion- focused on petrol and diesel vehicles “I’m driving at the moment,” he said engined cars),” Farmer says. that are economical on fuel and low when AutoTalk spoke to him during Mt on emissions . The intention of the scheme is good Maunganui’s morning rush-hour in but there are no viable electric He’s selling 600 horsepower Audis, V8 early August. “There are two utes next alternatives for some piston-engined Volkswagen Touaregs, Nissan Patrol to me. One is for an electric company, to page 34...

NEW PASSENGER GRID JULY 2021 Kia Mini Ford Jeep Audi BMW Benz Total Volvo Other Lexus Skoda Mazda Nissan Suzuki Honda Toyota Subaru Holden Porsche Peugeot Hyundai Mitsubishi Mercedes- Ssangyong Land Rover Alfa Romeo Volkswagen

21-JAN 11 151 191 369 48 364 586 62 1352 185 132 808 226 48 1002 320 71 56 130 91 233 719 1422 320 110 705 9712 20-JAN 23 145 237 510 534 413 592 90 964 132 76 674 272 107 588 467 88 61 145 70 291 596 1220 293 64 447 9099 % diff -52 4 -19 -28 -91 -12 -1 -31 40 40 74 20 -17 -55 70 -31 -19 -8 -10 30 -20 21 17 9 72 58 7

21-FEB 4 174 171 436 30 369 431 125 1056 113 85 733 167 95 1105 396 168 82 99 114 167 571 1058 327 63 571 8710 20-FEB 17 142 144 408 276 415 557 84 751 90 81 580 189 62 764 409 112 44 141 71 295 494 1093 288 47 357 7911 % diff -76 23 19 7 -89 -11 -23 49 41 26 5 26 -12 53 45 -3 50 86 -30 61 -43 16 -3 14 34 60 10

21-MAR 15 161 163 442 64 461 464 212 1054 135 90 786 201 83 1018 469 142 48 165 100 464 715 1106 536 70 949 10113 20-MAR 6 107 112 129 432 234 299 30 521 55 66 393 72 63 314 191 35 49 76 61 176 510 997 211 23 238 5400 % diff 150 50 46 243 -85 97 55 607 102 145 36 100 179 32 224 146 306 -2 117 64 164 40 11 154 204 299 87

21-APR 10 131 157 257 5 220 553 143 1090 128 81 618 163 73 1188 444 93 51 131 60 248 653 1260 371 67 630 8825 20-APR 0 3 15 14 50 39 74 0 169 1 0 35 4 4 27 21 13 1 4 5 24 102 51 22 0 29 707 % diff - 4267 947 1736 -90 464 647 - 545 - - 1666 3975 1725 4300 2014 615 - 3175 1100 933 540 2371 1586 - 2072 1148

21-MAY 12 206 184 295 0 383 480 160 1016 98 76 734 230 100 1183 497 99 74 176 51 362 772 1359 562 39 864 10011 20-MAY 6 107 112 129 432 234 299 30 521 55 66 393 72 63 314 191 35 49 76 61 176 510 997 211 23 238 5400 % diff 100 93 64 129 -100 64 61 433 95 78 15 87 219 59 277 160 183 51 132 -16 106 51 36 166 70 263 85

21-JUN 16 156 225 201 1 358 610 125 1019 211 87 679 266 77 1415 453 118 33 191 108 226 834 1285 536 42 1033 10305 20-JUN 14 168 159 154 510 293 576 70 708 97 93 561 209 65 478 498 70 39 123 97 2 240 955 334 47 853 7413 % diff 14 -7 42 31 -100 22 6 79 44 118 -6 21 27 18 196 -9 69 -15 55 11 11200 248 35 60 -11 21 39

21-JUL 16 156 225 201 1 358 610 125 1019 211 87 679 266 77 1415 453 118 33 191 108 226 834 1285 536 42 1033 10305 20-JUL 14 168 159 154 510 293 576 70 708 97 93 561 209 65 478 498 70 39 123 97 2 240 955 334 47 853 7413 % diff 14 -7 42 31 -100 22 6 79 44 118 -6 21 27 18 196 -9 69 -15 55 11 11200 248 35 60 -11 21 39

YTD 21 79 1178 1294 2180 149 2507 5135 934 7300 976 641 5094 1502 690 8346 3020 788 400 1295 602 1885 5055 8847 3088 443 5908 67657 YTD 20 87 814 881 1702 2647 2028 2912 440 4186 625 448 3217 1090 376 3176 2288 454 223 674 472 1218 2868 6650 1686 275 2708 44145 %diff -9 45 47 28 -94 24 76 112 74 56 43 58 38 84 163 32 74 79 92 28 55 76 33 83 61 118 53

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AUGUST 2021 New Zealand 33 STATSTALK ...from page 33 another has no writing on the side but by most tradies to ensure security of COMPETITIVE is towing concrete panels behind it. tools and equipment, Farmer says. FINANCE ON NEW VEHICLES “Most people buy utes for specific “Most won’t take a ute without a purposes.” The trucks are required for canopy.” doing work a Nissan Leaf could never To Farmer, the Government’s stance BROUGHT TO YOU BY do. on utes when there are no electric If there’s been a hindrance to ute sales alternatives is unfathomable. “I in recent times it’s been a shortage of think it’s absolute ignorance.” canopies which are deemed essential

NEW COMMERCIAL MAKES JULY 2021 NEW COMMERCIAL MODELS JULY 2021

JULY JULY MARKET JULY JULY MAKE MOVEMENT % CHANGE MAKE MODEL MAKE MODEL '21 '20 SHARE '21 '20 FORD 1,546 912 69.5 30.5 FORD RANGER 1,418 FORD RANGER 781

TOYOTA 1,077 801 34.5 21.3 TOYOTA HILUX 809 TOYOTA HILUX 627 MITSUBISHI 525 384 Up 1 36.7 10.4 MITSUBISHI TRITON 489 MITSUBISHI TRITON 383 ISUZU 302 250 Up 1 20.8 6.0 ISUZU D-MAX 241 HOLDEN COLORADO 381 LDV 237 124 Up 4 91.1 4.7 NISSAN NAVARA 227 NISSAN NAVARA 229 NISSAN 227 229 -0.9 4.5 MAZDA 160 227 -29.5 3.2 TOYOTA HIACE 209 MAZDA BT-50 227 GREAT WALL 136 35 Up 8 288.6 2.7 MAZDA BT-50 160 TOYOTA HIACE 147

HYUNDAI 116 53 Up 4 118.9 2.3 GREAT WALL GWM CANNON 133 ISUZU D-MAX 146 VOLKSWAGEN 108 101 6.9 2.1 FORD TRANSIT 128 FORD TRANSIT 131 OTHER 633 558 13.4 12.5 HYUNDAI ILOAD 109 MERCEDES-BENZ X-CLASS 86 TOTAL 5,067 3674 37.9 100.0

NEW PASSENGER MAKES JULY 2021 NEW PASSENGER MODELS JULY 2021 JULY JULY MARKET JULY JULY MAKE MOVEMENT % CHANGE MAKE MODEL MAKE MODEL '21 '20 SHARE '21 '20 MITSUBISHI 1,435 658 UP 2 118.1 14.4 MITSUBISHI ASX 737 TOYOTA RAV4 796 TOYOTA 1,357 1416 DOWN 1 -4.2 13.6 TOYOTA RAV4 553 KIA SPORTAGE 320 SUZUKI 791 529 UP 2 49.5 7.9 OUTLAND- MITSUBISHI 365 MITSUBISHI ASX 265 ER MAZDA 736 580 26.9 7.4 MAZDA CX-5 304 SUZUKI SWIFT 251 KIA 713 719 DOWN 3 -0.8 7.1 NISSAN QASHQAI 293 TOYOTA COROLLA 230 HYUNDAI 610 509 19.8 6.1 SUZUKI SWIFT 275 MAZDA CX-5 222 NISSAN 441 380 UP 1 16.1 4.4 HYUNDAI KONA 270 MITSUBISHI OUTLANDER 220 VOLKSWAGEN 436 341 UP 2 27.9 4.4 MG ZS 268 HYUNDAI TUCSON 206 MG 403 118 UP 8 241.5 4.0 HONDA 352 371 DOWN 1 -5.1 3.5 MITSUBISHI ECLIPSE CROSS 251 KIA SELTOS 184 HAVAL 253 92 UP 9 175.0 2.5 HIGH- TOYOTA 243 TOYOTA C-HR 172 LANDER MERCEDES-BENZ 249 192 UP 1 29.7 2.5 TOYOTA COROLLA 227 FORD ESCAPE 168 SKODA 242 113 UP 6 114.2 2.4 TESLA MODEL 3 197 HONDA HR-V 163 BMW 203 167 UP 2 21.6 2.0 SUZUKI VITARA 166 NISSAN QASHQAI 157 AUDI 199 169 17.8 2.0 KIA SPORTAGE 162 NISSAN X-TRAIL 147 TESLA 197 16 UP 14 1131.3 2.0 KIA STONIC 133 HYUNDAI KONA 118 SUBARU 185 257 DOWN 5 -28.0 1.9 HAVAL JOLION 132 VOLKSWAGEN TIGUAN 110 FORD 180 334 DOWN 7 -46.1 1.8 HONDA JAZZ 126 HONDA JAZZ 104 MINI 131 47 UP 7 178.7 1.3 HYUNDAI SANTA FE 121 SUZUKI VITARA 101 JEEP 107 79 UP 2 35.4 1.1 HAVAL H6 120 HOLDEN EQUINOX 97 OTHER 761 1113 -31.6 7.6 SUZUKI JIMNY 119 HOLDEN ACADIA 96 TOTAL 9,981 8200 21.7 100.0

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34 New Zealand AUGUST 2021 STATSTALK

SECONDHAND TRACKS DOWN

hile the rest of the vehicle market boomed, it their purchases fell 9.3% to 363. Public transactions totalled appears interest has waned in the formerly hot 2168, a gain of 4.3%. Wsecondhand market. In trucks, dealer business was down 19.6% to 3727 while Trader sales were down 19.7% for the month to 18,250, purchases rose 2.8% to 3475. Public sales were down 8% to while purchases fell 12.6% to 14,443. 8080. Public-to-public transactions declined 11.3% to 44,238. In bikes, dealer sales fell a huge 17.1% to 435 units, while

SALE TYPE WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL CARS 2021 Public to 257 5908 1153 172 659 159 64 494 242 168 757 98 1147 182 78 34 2000 87 7 508 269 14443 Trader Public to 2121 14277 3595 739 2255 982 429 1643 1040 643 1782 454 3308 1047 436 181 46 5342 562 144 1983 1229 44238 Public Trader to 629 6092 1532 291 894 362 161 762 384 255 839 206 1563 324 163 80 10 2300 214 41 719 429 18250 Public CARS 2020 Public to 293 6466 1412 128 756 92 56 571 275 163 888 127 1366 230 155 59 1 2453 138 6 547 347 16529 Trader Public to 2394 15657 4298 656 2854 943 487 1879 1380 652 2290 460 3745 1140 507 245 94 5657 726 262 2236 1291 49853 Public Trader to 764 7455 1965 296 1139 344 206 934 571 262 1095 226 2142 372 223 114 26 2780 301 98 932 489 22734 Public CARS % CHANGE Public to -12.3 -8.6 -18.3 34.4 -12.8 72.8 14.3 -13.5 -12.0 3.1 -14.8 -22.8 -16.0 -20.9 -49.7 -42.4 -100.0 -18.5 -37.0 16.7 -7.1 -22.5 -12.6 Trader Public to -11.4 -8.8 -16.4 12.7 -21.0 4.1 -11.9 -12.6 -24.6 -1.4 -22.2 -1.3 -11.7 -8.2 -14.0 -26.1 -51.1 -5.6 -22.6 -45.0 -11.3 -4.8 -11.3 Public Trader to -17.7 -18.3 -22.0 -1.7 -21.5 5.2 -21.8 -18.4 -32.7 -2.7 -23.4 -8.8 -27.0 -12.9 -26.9 -29.8 -61.5 -17.3 -28.9 -58.2 -22.9 -12.3 -19.7 Public MOTORCYCLES 2021 Public to 2 135 43 9 18 3 8 5 4 14 9 46 6 1 33 16 10 363 Trader 1 Public to 87 662 174 27 121 43 27 67 63 47 100 41 172 77 42 12 2 250 27 5 77 45 2168 Public Trader to 13 141 45 11 21 10 1 16 7 7 18 9 37 11 11 3 37 3 19 15 435 Public MOTORCYCLES 2020 Public to 2 139 44 22 3 14 3 2 24 5 80 4 35 1 10 12 400 Trader Public to 82 582 170 24 128 35 27 78 70 25 107 28 184 83 28 10 5 234 34 11 87 46 2078 Public Trader to 16 170 54 3 34 4 6 26 8 11 32 7 55 11 4 1 50 4 2 17 10 525 Public MOTORCYCLES % CHANGE Public to 0.0 -2.9 -2.3 -18.2 0.0 -42.9 66.7 100.0 -41.7 80.0 -42.5 50.0 -5.7 0.0 60.0 -16.7 -9.3 Trader Public to 6.1 13.7 2.4 12.5 -5.5 22.9 0.0 -14.1 -10.0 88.0 -6.5 46.4 -6.5 -7.2 50.0 20.0 -60.0 6.8 -20.6 -54.5 -11.5 -2.2 4.3 Public Trader to -18.8 -17.1 -16.7 266.7 -38.2 150.0 -83.3 -38.5 -12.5 -36.4 -43.8 28.6 -32.7 0.0 175.0 200.0 -26.0 -25.0 -100.0 11.8 50.0 -17.1 Public TRUCKS 2021 Public to 66 1230 319 86 140 56 37 153 55 58 216 58 154 87 54 6 410 25 1 145 119 3475 Trader Public to 450 2125 699 158 533 220 171 342 204 147 341 123 494 240 106 51 14 870 116 28 369 279 8080 Public Trader to 171 969 356 79 212 102 57 177 96 46 184 56 244 102 52 29 3 416 60 6 173 137 3727 Public TRUCKS 2020 Public to 65 1395 329 28 150 36 27 139 49 48 181 35 162 78 40 6 409 26 1 91 86 3381 Trader Public to 485 2143 819 174 593 181 158 386 320 127 456 132 530 301 114 57 22 930 114 54 434 254 8784 Public Trader to 251 1168 476 84 292 85 93 200 129 44 262 81 296 114 70 26 17 510 67 25 224 124 4638 Public TRUCKS % CHANGE Public to 1.5 -11.8 -3.0 207.1 -6.7 55.6 37.0 10.1 12.2 20.8 19.3 65.7 -4.9 11.5 35.0 0.0 0.2 -3.8 0.0 59.3 38.4 2.8 Trader Public to -7.2 -0.8 -14.7 -9.2 -10.1 21.5 8.2 -11.4 -36.3 15.7 -25.2 -6.8 -6.8 -20.3 -7.0 -10.5 -36.4 -6.5 1.8 -48.1 -15.0 9.8 -8.0 Public Trader to -31.9 -17.0 -25.2 -6.0 -27.4 20.0 -38.7 -11.5 -25.6 4.5 -29.8 -30.9 -17.6 -10.5 -25.7 11.5 -82.4 -18.4 -10.4 -76.0 -22.8 10.5 -19.6 Public

AUGUST 2021 New Zealand 35 STATSTALK MAKING HAY WHILE THE SUN SHINES

usiness is booming for Auckland The weather and the relatively mild we have had issues getting helmets – motorbike dealer Experience winter have also played a part in and anyone who’s buying a bike needs BMotorcycles which has showrooms motorcycles’ rising popularity, Green a helmet – but that’s picking up too in the inner west suburb of Kingsland says. though we’re still waiting on quite a and in Takapuna on the North Shore. “Our winters aren’t as heavy as they few.” There are signs that’s improving “Even though it’s winter, things are as used to be, and a lot of people are too. busy as in summertime,” says managing taking the opportunity to be out on a Green says the mood among director Kelly Green. bike and it’s the middle of winter.” motorcycle and other vehicle dealers is “It’s one of the best winters we’ve had Green says stock levels are better than positive. “Everyone I’ve spoken to is on in a long time.” they were. “Royal Enfield stock (sold the upturn and doing very well. Enquiry and sales are strong right from a specialist showroom in Takapuna) “The only issue is not being able to across the board in the multi-brand has picked up. bring in skilled people from overseas, dealership. “Stock at Kingsland is a lot better than like technicians. Usually, winter is a relatively quiet time it was, but there are some models in “They’re not recognised by Immigration for motorcycle dealers, she says. “It’s a short supply, which is a shame. as being skilled or essential workers, chance to catch up with things.” “The BMW 1250 GS is hard to get, and which is crazy.” But this year, “our diary is full every day. Triumph have a new Trident out for Green has been working with the At this stage there’s been no downturn which there’s heavy demand and it’s a MTA on the issue but “they’ve been in our service work.” LAMS (learner approved motorcycle) bike. struggling to get Immigration to listen to them”. Green believes motorbike sales are “But stock is a lot better than it was being boosted in Auckland by people three months ago.” Looking to the future, Green is getting fed up with heavy traffic, Supply from overseas is improving, optimistic. “If we follow the trend of especially at rush hour, and switching Green says. “But we’re still having the way things are going now, we’re from cars to bikes. some issues with parts (where) supply shaping up to have a really good summer providing we can get all of the “It’s traffic. A lot of people here that is very inconsistent which makes it stock we need. work for us all ride bikes because they tough at times but that’s also starting to can’t handle the traffic. improve.” “There’s an old saying, ‘make hay while the sun shines’ and we are “I definitely feel that on the commuting Experience Motorcycles has had no definitely trying to do that.” side of it there’s been an increase in the issue with apparel supply, she says. number of people using bikes.” “That seems to be back on track, but

NEW BIKE MAKES JULY 2021 NEW BIKE MODELS JULY 2021 JULY YTD JULY % MAKE MARKET SHARE MAKE MODEL JULY '21 '21 '21 '20 CHANGE HARLEY DAVIDSON SOFTAIL 228 SUZUKI 109 1,057 127 -14.2 14.1 TNT MOTOR ROMA 170 HARLEY DAVIDSON 76 368 54 40.7 9.8 SUZUKI GSX250FRLL9 168 YAMAHA 76 564 72 5.6 9.8 SUZUKI DR650SE 153 TRIUMPH 71 331 33 115.2 9.2 SUZUKI UZ50 147 KTM 68 487 47 44.7 8.8 KTM 390 136 HONDA 61 481 48 27.1 7.9 KAWASAKI EX 117

KAWASAKI 36 282 37 -2.7 4.7 VESPA GTS 94

ROYAL ENFIELD 36 295 27 33.3 4.7 HONDA CMX 90 KTM 890 87 DUCATI 31 167 19 63.2 4.0

INDIAN 28 147 17 64.7 3.6 USED BIKE MAKES JULY 2021 FORZA 21 135 22 -4.5 2.7 % MARKET MAKE JULY '21 JULY '20 VESPA 20 173 16 25.0 2.6 CHANGE SHARE HARLEY DAVIDSON 39 65 10.8 29.1 FACTORY BUILT 17 119 9 88.9 2.2 YAMAHA 18 8 125.0 13.4 TNT MOTOR 15 178 29 -48.3 1.9 TRIUMPH 15 18 -16.7 11.2 MOTO GUZZI 14 41 8 75.0 1.8 DUCATI 12 19 -36.8 9.0 APRILIA 12 76 4 200.0 1.6 BMW 10 16 -37.5 7.5 BMW 12 146 22 -45.5 1.6 HONDA 9 11 -18.2 6.7

BENELLI 11 89 4 175.0 1.4 KTM 8 5 60.0 6.0 KAWASAKI 7 2 250.0 5.2 HUSQVARNA 11 72 5 120.0 1.4 SUZUKI 3 2 50.0 2.2 UBCO 11 43 10 10.0 1.4 MOTO GUZZI 2 3 -33.3 1.5 OTHER 37 558 73 -49.3 4.8 OTHER 11 20 -45.0 8.2 TOTAL 773 5,809 683 13.2 100.0 TOTAL 134 169 -20.7 100.0

36 New Zealand AUGUST 2021 STATSTALK

COMMERCIAL REGISTRATIONS CONTINUE GROWTH

ew and used commercial vehicle registered and a 17.3% market share. in July with 54 units registered and a registrations were up year-on- That’s up 87.5% compared to the same 25.2% market share. That’s a 50% rise Nyear in July. period of the year before when 48 compared to the same period a year Total registrations of new trucks Fusos were registered. prior which saw 36 Toyotas registered. and buses over 3500kg GVM sit at Hino is in second spot for the month, Hino is in second spot, up 19.4% with 521 units for the month, up 17.1% up 34.5% with 74 units registered and a 43 units registered and a 20.1% market compared to the same period a year 14.2% market share. share. prior when 445 new commercials were Isuzu is third, down 41.3% with 61 units Isuzu is third, unchanged with 35 units registered. registered and an 11.7% market share. registered and a 16.4% market share. Used trucks and buses over 3500kg Scania follows, up 31.6% with 50 units Mitsubishi follows, up 8% with 27 GVM registrations sit at 214 units for the registered, Mercedes-Benz up 94.7% units registered, Nissan down 10% (18), month, up 10.3% compared to July 2020 (37), Fiat up 24.1% (36), Iveco up 25% Mazda down 28.6% (5), Ford up 100% which saw 193 units registered. (30), Foton up 53.3% (23), Ford up (4), UD Trucks unchanged (4), Fuso (3) Fuso is market leader for new 157.1% (18) and UD Trucks up 25% (15). and Kenworth (3). commercials in July with 90 units Toyota led the used commercial market

NEW TRUCK MAKES JULY 2021 USED TRUCK MAKES JULY 2021 JULY JULY % MARKET YTD YTD JULY JULY % MARKET YTD YTD MARQUE MARQUE '21 '20 CHANGE SHARE '21 '20 '21 '20 CHANGE SHARE '21 '20 FUSO 90 48 87.5 17.3 528 344 TOYOTA 54 36 50.0 25.2 344 222

HINO 74 55 34.5 14.2 415 291 HINO 43 36 19.4 20.1 293 172

ISUZU 61 104 -41.3 11.7 560 557 ISUZU 35 35 0.0 16.4 302 204

SCANIA 50 38 31.6 9.6 233 191 MITSUBISHI 27 25 8.0 12.6 176 93

MERCEDES-BENZ 37 19 94.7 7.1 202 185 NISSAN 18 20 -10.0 8.4 113 71

FIAT 36 29 24.1 6.9 268 162 MAZDA 5 7 -28.6 2.3 37 33

IVECO 30 24 25.0 5.8 194 158 FORD 4 2 100.0 1.9 23 14

FOTON 23 15 53.3 4.4 83 43 UD TRUCKS 4 4 0.0 1.9 23 13

FORD 18 7 157.1 3.5 65 44 FUSO 3 1.4 16 7

UD TRUCKS 15 12 25.0 2.9 98 80 KENWORTH 3 2 50.0 1.4 14 10

OTHER 87 94 -7.4 16.7 763 620 OTHER 18 27 -33.3 8.4 127 126

TOTAL 521 445 17.1 100.0 3409 2675 TOTAL 214 194 10.3 100.0 1468 965

AUGUST 2021 New Zealand 37 DISPUTES $28,427.54 EV PAY-OUT ORDERED

MEDIVOCE V CENTRAL MOTOR GROUP Almost three years after taking delivery of the 2017 Renault Zoe EV40 that Medivoce bought on December 13, 2017, from Central Motor Group (then trading as EV Central) for $42,990, Medivoce director Margaret Lindsay was driving in rush hour traffic on an Auckland motorway. Suddenly, the vehicle’s electric motor stopped, the Motor Vehicle Disputes Tribunal heard. There was no motive power and only enough momentum to reach the safety shoulder. The dashboard displayed an ominous warning: “engine failure”. The vehicle’s motor wouldn’t restart and the car needed to be towed home. The following morning, a different resupplying it in trade, consuming it in of Medivoce. message appeared on the dashboard: the course of a process of production On behalf of Central Motor Group, “warning, danger, electrical failure”. or manufacture, or to repair or treat Blakeney-Williams did not present any in trade other goods or fixtures on The vehicle couldn’t be seen by the additional evidence to establish that land. Rather, it was a vehicle that was local Renault agent, Auckland Vehicles, any agreement to contract out of the purchased for general personal and until early January 2021. Its computer Act had been reached otherwise than business use. analysis revealed a fault code “DTC by the default application of clause I3, 0841F3 – rotor position sensor”. Accordingly, the tribunal concludes notwithstanding the lack of signature Medivoce was a consumer for the to acknowledge that provision applied. Auckland Vehicles advised Dr John purposes of the Act, despite buying Lindsay, Medivoce’s other director, “Accordingly, I conclude that Central the vehicle for its business, and that the car would need a replacement Motor Group has not established that that the Act therefore applies to this motor at a cost of $28,285.40, but that there was any agreement reached dispute. there were no replacement motors between the parties to contract out currently available in New Zealand. Did the parties agree to contract out of of the provisions of the Act,” the the Act? adjudicator says. Medivoce conveyed this information to Richard Blakeney-Williams Jnr, Central The tribunal says an agreement “Therefore, I do not need to go Motor Group’s general manager and between the parties must exist where on and consider whether any such dealer principal. provisions of the Act will not apply. agreement would have been fair and That is where, in the present case, reasonable because, in my view, no However, Central Motor Group Central Motor Group’s defence falls agreement had been reached in the declined to provide any further down, the tribunal says. first place.” assistance, advising Margaret Lindsay that because of the age of the car, It says the vehicle offer and sale The adjudicator made one observation and because it was bought under agreement (VOSA) for the Renault in respect of s 43(2A). These provisions Medivoce’s name, the Consumer contains a number of small print recognise, especially in paras (c) and Guarantees Act 1993 doesn’t apply. provisions as is typical in standard form (d), that any agreement should be a contracts of this kind. Clause I of the transparent, negotiated agreement Central Motor Group didn’t dispute VOSA provides as follows: between the parties, rather than some that the electric motor has failed and form of unilateral take it or leave it needs replacing. Nor did it question Consumers Guarantees Act 1993 term buried in the small print of the the estimated repair costs advised to (“CGA”): “Save as expressly provided VOSA. Medivoce. in I2 and I3 below, nothing in the following section of this Agreement “As best as I understood his It was accepted in the hearing that excludes or limits any rights the submissions, Mr Blakeney-Williams the vehicle is a small hatchback. As purchaser may otherwise have under appeared to assert that Central Motor such, it is a vehicle of a kind ordinarily the CGA. Group was entitled simply to impose acquired for personal, domestic, or conditions on Medivoce that the Act did household use. On behalf of Medivoce, Dr Lindsay told the tribunal that at no time did he not apply. In the present case, no evidence was agree to waive the protections of the “It could achieve this merely by produced to suggest that Medivoce Act, in respect of the vehicle, on behalf including a small print exclusion clause bought the vehicle for the purpose of to page 39...

38 New Zealand AUGUST 2021 DISPUTES

...from page 38 in the VOSA, regardless of whether that vehicle for three years. purchase.” provision had actually been mutually “The tribunal’s assessment is that The tribunal concluded the Renault agreed. If that was Central Motor the guarantee of acceptable quality is failed to comply with the guarantee of Group’s submission, I reject it.” flexible in its application, depending acceptable quality. On behalf of Medivoce, Dr Lindsay on the factors itemised at paras (f)-(j) Since December 2020, Medivoce has submitted that the vehicle has not of s 7(1). been attempting to get Central Motor been fit for purpose in terms of the “Commonly, the tribunal takes into Group to assist it to repair the vehicle, definition of acceptable quality in s account a vehicle’s age, mileage and or otherwise compensate it. 7(1)(a) of the Act as this vehicle is only price in determining the extent of Its lack of success in persuading three years old and has only been coverage afforded by the guarantee Central Motor Group to assist led driven 17,518 km since new. of acceptable quality in respect of a Medivoce to bring this proceeding in On behalf of Central Motor Group, particular vehicle. the tribunal, which it began in early Blakeney-Williams submitted that the “I acknowledge the Renault was a ‘grey February 2021. vehicle was sold as a used vehicle, import’ and therefore sold as a used Instead of immediately rejecting the having been imported as a “grey vehicle. vehicle then, Dr Lindsay renewed his import”. “However, in my view it is appropriate request for the cost of repairs. It was Although the vehicle only had delivery to treat this vehicle as if it were not until the hearing on May 24, 2021, kilometres (165km) on the odometer very nearly new, given that it was some four months later, that Medivoce when imported, it had previously been of such low mileage when sold and unequivocally confirmed that it wished registered in the United Kingdom and was identified as having a vehicle to reject the vehicle. purchased from a dealer there. year that is the same as the year of “By this time, I consider that Medivoce This made it a used vehicle for the purchase, 2017,” the adjudicator says. had lost its right to reject the vehicle,” purposes of the Motor Vehicle Sales Act “The facts that the vehicle did not the tribunal says. 2003.[4] As such, no manufacturer’s come with a manufacturer warranty, “It is particularly important where a warranty applied to the vehicle. or that Medivoce declined to purchase long period has elapsed since the time Central Motor Group said that a mechanical breakdown insurance, are of supply that consumers act promptly mechanical breakdown insurance policy irrelevant to the application of the and decisively to reject a vehicle, as was offered for purchase by Medivoce, guarantee of acceptable quality under soon as they are aware of the nature of but was declined. the Act. the problem. “ Central Motor Group submitted that, “In relation to that guarantee, I do not “However, Medivoce is entitled to as the vehicle is now three years old consider that a reasonable consumer, recover the reasonable cost of repairs and has been owned by Medivoce fully acquainted with the state and to the vehicle, as estimated by for that time, the guarantee of condition of this near new vehicle, Auckland Vehicles: $28,285.40” acceptable quality no longer applies. would regard it as acceptable that its Central Motor Group submits further electrical motor would fail and require expensive replacement (amounting to Footnote: Dr John Lindsay says the Renault that it is unreasonable for a purchaser dealer in Auckland bought the Zoe from to allege a breach of the guarantee about two thirds of the purchase price), them and they purchased a Hyundai Kona of acceptable quality after owning a only three years and 17,500km after EV to replace it. TRADE www.mta.org.nz DIRECTORY The comprehensive guide to every NZ’s leader in automotive software solutions service a dealer could use

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AUGUST 2021 New Zealand 39 Online or on the lot: fuel economy labels

With more sellers using a growing number of car sales On some online sales websites the fuel economy platforms, it’s a good time to check in and make sure you information is automatically generated, but you need to know your legal obligations, and that you’re giving your make sure you enter the correct details of the vehicle you customers the best information they need to make their are listing. buying decision. Who is checking? By law, vehicle fuel economy labels must be displayed on EECA runs the Vehicle Fuel Economy Labelling the car for sale, and alongside online listings. They allow programme. Traders can expect a visit at any time from buyers to compare the fuel economy of different vehicles EECA to check the labels are displayed correctly for to factor in running costs. vehicles offered for sale on their premises. EECA has new tools to regularly survey vehicles advertised for sale on Find out who needs to display the label, and how, below. traders’ websites and online sales sites and check that traders are meeting their legal obligations in displaying Who needs to display the fuel economy online vehicle fuel economy information. label? Motor vehicle traders are required by law to display the The EECA website has more detailed information about fuel economy label on vehicles for sale, provided the displaying fuel economy information and how to get in information is available. Traders also must provide fuel touch. Visit eeca.govt.nz/vfel economy information for online listings offering vehicles for sale (that includes your own website, or online sales sites like Trade Me and Facebook). Which vehicles do the regulations apply to? The Vehicle Fuel Economy Labelling Regulations apply to all light vehicles under 3.5 tonnes offered for sale, including camper vans, motor homes and trades vehicles such as vans and utes. Labelling does not apply to motorbikes and is optional for plug-in electric vehicles. How do you display fuel economy labels? It’s really easy. To get fuel economy information for the vehicle you are selling, just go to the label generator on EECA’s website (https://resources.fuelsaver.govt.nz/label- generator/), and follow the instructions.

You must display the fuel economy information as written text alongside the vehicle listing if the information is available at the time of listing. The information must include: • vehicle make and model • fuel economy (litres per 100km) • running cost per year • star rating

40 New Zealand AUGUST 2021