www.autofile.co.nz MARCH 2021

THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS Bright future emerges from Holden’s shadow

Honda boss on agency model

Linn Motors has shifted to Hyundai p 12 Demise of brand, Covid-19 and Isuzu Utes from Holden pandemic, lockdowns and AA man takes on setting up new franchises industry make for tough transition role rian Trebes describes 2020 While those combined events It was on February 17, 2020, that p 16 as the most challenging could have spelt disaster for Linn GM revealed it was pulling Holden year he has had to face after Motors, instead it has hired extra from Australasia and Thailand, but havingB to deal with the double- staff to handle taking on Hyundai would provide servicing and parts Design whammy of the impact of Covid-19 and Isuzu Utes. for the next 10 years. makeover and the end of Holden. Then there has been the The move affected 31 franchises across The owner and director of significant financial outlay to in New Zealand and they reportedly range Linn Motors, which has branches cover the costs of restructuring received compensation of about in Thames and Paeroa, says the showrooms and new signage. $2,500 per new vehicle sold over a p 22 decision by General Motors (GM) to Trebes says the move to ditch sales set period. axe the lion-and-stone brand left of new Holdens by the end of 2020 “It was a devastating everyone in a state of shock. left staff at dealerships and many announcement given there was no Leitch on Hot on the heels of that members of the public in shock. warning,” says Trebes. “Everybody hard road bombshell early last year came Linn Motors had been selling found out at the same time and to success the coronavirus pandemic and the them since the late-1950s and some was in a state of shock. It was an nationwide lockdown that forced customers loyal to the brand took the uncomfortable time for everybody p 24 businesses to shut their doors. news about its end quite personally. here because we were sole-franchise [continued on page 4]

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GUEST EDITORIAL Industry more resilient MAKING YOUR SUMMER MORE DIRECTORS EDITOR in the face of adversity Brian McCutcheon Darren Risby [email protected] [email protected] ph. 021 455 775 REWARDING! JOURNALISTS Phil Hibbert looks back on the past 12 months. Darren Wiltshire Sue Brebner-Fox [email protected] [email protected] He says we are more robust after the dark times ph. 021 0284 7428 Matthew Lowe and major changes to how we do business [email protected] DESIGNER Adrian Payne MOTORSPORT erhaps none of Many have found [email protected] Mark Baker [email protected] us want to be that affordability of reminded of how such luxuries isn’t as Pmuch both our personal far removed from us as Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. and business lives have we may have thought Back copies are also available on the website. become different since and, of course, low Copyright: Published monthly by 4Media Ltd the Covid-19 pandemic interest rates have struck. greatly assisted this All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be The past 12 PHIL HIBBERT affordability. Chief executive officer accepted for any errors or omissions. Reproduction of Autofile in months have been Protecta Insurance Specific to our print or digital format in whole or part without written permission, most unusual, but it is industry, many of these whether by copying or any other means, is strictly forbidden. perhaps useful to reflect on some luxury items will have been All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) of the changes to our industry financed and virtually all will have that are probably going to be been insured. with us for a very long time – if And who would have thought not forever. that getting a new vehicle or boat For example, we have all could prove be so difficult with learnt to be smarter in our use of global and local supply chains Vehicle Inspection NZ technology to provide service to under so much strain. customers in a more remote way. New Zealand being granted Many businesses have also been an improved credit rating in late Entry Certification forced to review their operating February received a huge fanfare models and expenses bases to be of publicity and Kiwis have been Specialists more efficient and resilient. educated on how stronger credit We have all found that regular ratings result in lower interest face-to-face contact is probably rates for borrowing. not as necessary as we once Hopefully, the public will also thought and, in many cases, it just now have a greater appreciation isn’t wanted. of how important claims paying Working remotely has been and credit ratings are for lending enjoyed by many, while some still institutions and insurers. miss the personal contact to be It may be difficult to measure found at their workplaces. the effect of some of these more But people keeping their jobs subtle or subliminal changes, but and being loyal to employers who others are very transparent in have stuck by their staff has taken their financial effect. on more importance. One thing I’m sure about, Vehicle Shipping General Freight Vehicle Tracking Shipping Schedule Rewards Programme Not being able to go overseas though, is that our industry has and spend our money in that changed significantly over the way has seen many people look past year. • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges to reward their sudden isolation We are generally more robust • Registration & relicensing • Exhaust emission testing by travelling more around New and resilient because of these >> >> >> >> Zealand or by buying new “toys”, changes, so there is a silver Load it Ship it Track it Clear it Deliver it such as boats, motorbikes and lining in what have been 12 very 0800 GO VINZ VINZ.CO.NZ classic cars. dark months. www.jacanna.co.nz Tel: +64 9 825 0888 www.autofile.co.nz 3 news [continued from page 1]

dealers for Holden and had no brand to fall back on. “It was a blow for so many. There were a lot of people coming onto our yards. Even the local mayor arrived to see us and ask if there was anything the council could do.” Trebes immediately got to work trying to find a suitable franchise for the business, which he took over in 2016, and he spent most of the coronavirus lockdown “working hard on plan B”.

“It was a busy time. Being a Brian Trebes Linn Motors in Paeroa small dealer, it was hard to be top of people’s lists when you needed Linn Motors was high, and customers really well. We’d been busy just harder because we have two brands t something done or had questions past and present made sentimental before and after. In the end, most and have retained Holden servicing. that needed answering. visits before the branding at the two of the Holdens were gone before “The workload has increased “It has also been tricky because yards was replaced. the Hyundai models turned up. and we have been taking on extra the franchise people were picking “When the news was announced “The interest was good and people to cope with that.” up several other dealerships at the in February, we had a fair bit of stock there’s certainly going to be Despite the disappointment of same time. Holden disappearing here and were building up to sales Holden people out there for a long losing Holden, Trebes is optimistic opened a big hole for other that were coming and had a lot of time to come. customers will be won over by manufacturers to jump into. stuff heading our way. “Our Holden signs came down the new vehicles being sold at “I talked to a lot of franchises “We then had an allocation from in October, which was a bit sad, and Linn Motors. and I’m happy with where we’ve Holden, which was the last of its we had some owners of old Holdens He also says the changes forced ended up. We’re all set up to keep vehicles, and we took as much as rocking up to have photos taken out upon the business will create sales going forward.” we could. front before that happened.” lines that were unavailable under Demand for the last Holdens at “After the lockdown, we went Trebes says the company the Holden franchise. never planned to reduce staff “The year 2020 will definitely numbers despite being hit by go down in my mind as one of the Holden’s departure, Covid-19 and most challenging. However, we’ve costs associated with taking on just got to keep working towards new franchises. what we need to do. With each marque having its “You have to stay positive and own requirements, Linn Motors I’m planning as if everything’s has had to make changes to going to be okay, but at the same buildings, signage and indoor time having contingencies for the Specialists in furniture. Employees have been next kick that comes. We’re ready pre‑shipment inspections kept busy learning about Hyundai for anything now. and Isuzu models. “There were a lot of loyal in Japan & UK “The extra outlay is part of the people with Holden and you cost of being able to take them on,” can’t buy that. However, we’re  Full border inspections explains Trebes. excited about the new Isuzu “It can be harder for smaller, D-Max. It’s similar to a Colorado  Authorised MPI inspections country dealers such as ourselves and hopefully that will be an easy  Authorised NZTA inspections and the cost is doubled because of transition for most people. changing two sites, but I’m happy “Hyundai makes good cars and  Odometer verification to invest in our future. the electric-vehicle scene is a new “We’re having to learn processes market for us. We have vans now,  Pre-export appraisal and requirements that are different which we didn’t have with Holden, to what we were used to while and we’re on the right track with  Vehicle history reports selling Holdens. alternative fuels, whereas with “We are also having to learn Holden and GM we were miles off about whole ranges of models we the pace. previously knew little about and “Overall, Holden’s departure has the parts guys have new systems to given us other opportunities we work on. hadn’t previously been able to take. “Previously, we could go through The brands we’ve got are good and JEVIC NZ our day knowing exactly what we they will sit well with customers were doing because we’d been who have supported us for such a 09 966 1779 www.jevic.co.nz doing it for so long. Now it’s a bit long time.” 

4 www.autofile.co.nz news

Clive Linn senior set up the family Linn Motors has been in the Thames Valley Clive and Marie Linn sold up business in Paeroa in 1938 for more than 80 years to Brian Trebes in 2016

t DOWN MEMORY LANE “I continued for a further 13 “In the early days, before cars industry ever experienced. Clive Linn is proud to hold the years after that, so my claim to came off import restrictions, it was “Then discounts came into record for Holden’s longest-serving fame is that possibly I have a record a whole different industry. People the English language. After that, dealer principal in New Zealand, that will never be broken.” had to have overseas funds and everyone just sold them for but his claim to fame is tinged with He says it will be interesting obtain a licence to be able to bring whatever they felt they could get. sadness because he knows his to see how the values of Holdens in a new vehicle. “In the 1970s, rising fuel prices record will never be broken. grow, particularly older classics. “For every import licence you had a big impact on the industry. A lifelong affinity with Holden “I think the V8 stuff will be in presented to Holden or GM, they Before then no one worried about – from his first car to his most demand because the tail-end of gave dealerships an extra bonus fuel economy because fuel was recent – has left Linn with many the Commodore productions, vehicle to be able to sell to anyone. so cheap. fond memories of the marque, the HSV and Redline variants, are “In 1972, the lid was lifted “When the oil crisis hit in the including selling hundreds of still popular. They’re such great on licensing restrictions. Those ’70s, the economic statistics of a car their vehicles to Kiwis. muscle cars. early ’70s, about 1972 to 1974, became an important part of the His father, Clive Linn senior, “There are so many Holdens out were some of the best years the buying process. started Linn Motors in the there. With Holden committed to [continued on page 6] Coromandel town of Paeroa in providing after-sales for 10 years, at 1938 before securing the GM and least it means they’re going to be Holden franchises in the 1950s. around for a long time to come.” The younger Clive, who joined Linn, the youngest of four the company aged 18, took over the children, was born about 100 running of the business in 1975 and metres away from the family’s added the Thames branch in 1990. Paeroa business, which his father an independent choice He was dealer principal for started after moving from Taranaki more than 40 years before selling with his wife Rona. QUEST INSURANCE OFFERS: Linn Motors to Brian and Carmel The company – located in the Trebes in 2016, and retired the building opposite where Linn Mechanical Breakdown Insurance following year. Motors is in Paeroa today – began – backed by AA Roadside Assist Linn says GM’s decision to axe life as a service station selling fuel, Holden came as a shock. “The fixing tyres and providing repairs. Mechanical Breakdown Insurance news was sad because it has been Linn senior later took on franchises for Electric and Hybrid Vehicles my life. I was devastated. We had for Hillman, DeSoto trucks and a few other franchises at various David Brown tractors. Comprehensive Motor Vehicle Insurance stages, but our mainstay was “Then he had the chance to get always Holden. the GM franchise, which we got in Lifestyle Protection Insurance “I think everyone was shocked April 1951,” recalls Linn. “Originally because Holden is a bit of an the cars were Vauxhall, Bedford Australasian icon and, it seems, and Chevrolet. Then we got Holden Credit Contract Indemnity Insurance everyone has owned one at some later on.” stage. Holden has been good to He started working alongside me and my family over the years his father and brother, Bill, in 1965. Guaranteed Asset Protection Insurance through being a dealer.” The first car he bought for himself In 2004, Holden celebrated its was a 1964 Holden EH, which he If you are a forward thinking motor vehicle trader, or financier, 50th anniversary with an event still takes out for drives. looking for a trusted vehicle insurance partner, call Quest. in Auckland at which Linn was Back then, there were strict presented with a watch for being import controls and they were Contact: Simon Moore 021 149 2266 the longest-serving dealer principal only allocated about 15 new cars a [email protected]  in New Zealand. year to sell.

www.autofile.co.nz 5 news [continued from page 5]

“In those early years, you didn’t have a great deal of choice of models but from the ’70s onwards there was a prolific range of models, and the advent of Japanese and Korean models.” Linn became dealer principal of Linn Motors when he purchased his father’s and brother’s interests Linn Motors secured a General Motors in the company. franchise in the 1950s Besides its operation in Paeroa, the business had a branch in Waihi for 25 years, which closed in 1987, and it took over the Holden franchise territory for Thames and the Coromandel Peninsula in 1990. “That gave us the whole of the Hauraki Plains, Coromandel and Waihi area.” Linn “pulled the pin” on A full lubritorium was on offer soon The company had a presence working when he turned 70 and after the business opened in 1938 across the Thames Valley district he and his wife Marie, who live in Whangamata, sold the business to “My father had it pretty hard in “He said, ‘why would I change a massive difference to the buying the Trebes. Marie still works at Linn those early years, so I feel proud the name, it’s been around for so habits of people because they Motors as general manager. of what the Linn Motors name long and if you called it something could do it all from their lounge. Over the years, the company hit has achieved in the Thames Valley else, no one would know who you Prior to that, consumers relied on many milestones, including winning and Coromandel, and that’s why were’. Linn Motors has customers adverts in their local newspapers. Holden rural dealer of the year in Brian [Trebes] has stuck with the who are third or fourth generation, “We just had to join the club 2002, 2008 and from 2010-12. name,” says Linn. which is amazing. and get on the internet. It had a big “I think you survive through effect on the industry and made it honesty, integrity and giving more important to build up a loyal good service. If you don’t have all customer base and look after it with those things, you will struggle to the best possible service. make it in the long run. “The business was all about “I think building a reputation building up those relationships. can guarantee your future.” I’m sure in the early days it Linn and his wife remain Holden seemed everyone had more fun fans. He drives an Equinox SUV and in the industry, but as time went she has a VXR Commodore – and on you had to become more cut- A better deal for the he still has his precious EH. throat and serious. “We got new Holdens before “Once a car dealer, always a they announced the end of the car dealer and it doesn’t go away. Motor Vehicle Trade brand. We will have those for a You notice new cars and new few years. When it comes time to models and read the motoring nFlexible credit facility available to fund change again, we’ll go out and publications. It’s a lifetime interest vehicles in transit or on your yard decide what we go for next. and it’s in your blood. It was a “The chances of going to a great ride but I’m now enjoying nAccess to stock when you want to buy, Hyundai are strong as we’re keen my lawns here in Whangamata. not only when you have the available cash to support Brian and the cars are “I still get asked around the golf n good products, as are Isuzu’s utes. club about cars and I’m still doing Free up your capital and grow “My favourite car I had was deals with Brian Trebes. That’s your business the first of the Commodores and because old clientele come to nOnly available to registered another highlight was the first 1978 me and say they trust me and ask motor vehicle traders Commodore SLE. That was a biggie.” me to help out with their vehicle Linn has seen a huge number purchase, which I’m happy to do. of changes in the automotive “My opinion in the industry industry over the years, with the still appears to be respected and I extra technology in cars among the get asked what I think about this biggest transformations. car or what people should change “One of the biggest changes to to, what’s good and what’s not so Ph: 09 320 5646 the industry was the advent of the good. I enjoy that. It’s nice to still Contact us now to find out more www.autobridge.co.nz internet and Trade Me, which made be involved.” ‘A’ FOR AWESOME

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*Virginia Surety Company, Inc. (NZ Company NO 920655) www.autofile.co.nz 7 news Audits put pressure on costs t ntry-certification inspection inspection organisations (BIOs) organisations are weighing were due to expire on June 30, up the costs of extra 2020, with the new ones coming Eregulation and compliance after into operation the following being reappointed. day. However, changes to the Following an application appointment process and the process that started in late 2019, impact of Covid-19 extended the Waka Kotahi has permitted five time frame. companies to fulfil the role from Sergel says it is a relief for the start of this month. the AA to be appointed after The AA, Vehicle Inspection NZ the initial call for applications (VINZ), VTNZ and Drivesure have was made in November 2019. been given five-year terms, while He adds deadlines for providing Canterbury Vehicle Compliance in information had to be frequently Ashburton has a three-year deal. adjusted after the transport Under the new arrangements, agency “underestimated” how the providers must deliver Five companies have been appointed to perform entry-certification inspections much work needed to be done to increased levels of reporting to complete the task. the transport agency and undergo but we don’t know if it will be $1 perceived ability of the people who “My team has been working external auditing. or $100 a car.” control those sites to be a fit and on this for more than 18 months Jonathan Sergel, the AA’s The five companies have been proper person,” he told Autofile. and it’s a relief to see a positive general manager of motoring approved to certify that used “There has also been more outcome,” he says. “It has taken a services, says the fresh level of light vehicles entering the fleet rigour around conflicts of interest, lot of time and energy to get to regulation will have a financial meet a range of conditions related especially if there’s any financial this point. We’re lucky from an AA impact on its services. to safety. Once a vehicle meets interest in a vehicle. It will be perspective that we have some “We need to work through these requirements, a registration interesting to see how some quality people who have been what the rigour around extra application form and warrant or other businesses monitor that involved in this kind of work for a compliance for external audits certificate of fitness can be issued. but it’s easy for us because we’re long time. We’ve been able to act will look like and the cost Sergel notes that besides the independent. relatively quickly with requests for implications,” he says. extra rules being put in place, the “The agency was also information and process changes. “I suspect all appointed overall appointment process has concerned about undue influence “Waka Kotahi has had to move businesses are thinking who do been more rigorous than in the past. being put on inspectors during the its time frame on a number of we get to do it and how big is the “There’s been a lot more focus compliance process and that was a occasions because of the amount bill going to be. I do not doubt on the operator, both ourselves key thing to address.” of work and information required, the cost of compliance will rise and third-party sites we engage Previous appointments of which has been difficult to provide because of audit requirements, with, particularly around the light-entry certification and border- in the time it asked us to. Saying 

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8 www.autofile.co.nz news

t that, the agency has been easy to because we’re directly involved deal with in changing those time with the importer and exporter.” frames. It probably underestimated Having appointed companies the work needed and Covid-19 had to perform light entry-certification a part to play in that.” duties, next up for the agency is Sergel says the AA has issuing contracts for BIOs. already launched one of the new Eight companies have lodged methods of data collection now applications to operate as BIOs and required and the clarity of a five- the successful ones are due to be year term will allow it to invest given terms of three to five years further in its operating systems. from the start of July 2021. It will now engage an external “We look forward to the BIO auditor and “finding someone appointments’ confirmation as these capable in this space, which no are also important to us,” says Willett. one has done before”. “Our group uses Bordercheck for “We need to work with the Sean Stevens, VINZ Frank Willett, Autohub Jonathan Sergel, AA much of our pre-export processing NZTA to ensure it’s receiving the and, along with existing providers, information it needs to make the VINZ is conducting “time and of Autohub, welcomes news we’re keen to know if Bordercheck right decisions. Ultimately, we motion studies” to see if it can find of the appointments and the gains NZTA approval.” all want safer vehicles on New ways to save time in the entry- transport agency demanding extra Zealand’s roads. We don’t want this certification process. compliance from providers. He RAISING THE BAR process to be compromised in any “It’s a very paper-based system adds he was “fairly confident” the Sue Hardiman, Waka Kotahi’s senior shape or form.” and there’s a lot of manual keying,” previous appointees were going to manager of vehicle and driver says Stevens. “We are working have their terms renewed. licensing, hopes the agency’s new EXTRA REGULATION on methods of streamlining that “It’s great the contracts have approach to making appointments VINZ will provide entry certification process. It will be interesting for been confirmed and, like many, I’ll will lift industry standards. at all of its testing stations and is us to track our metrics and ensure be interested to find out more of “We have raised the bar looking at how it will manage the we have the processes in place to the details and requirements from around the application process extra workload under its new terms meet the requirements under the the NZTA now placed on KSDPs. for entry certification and border of appointment. new notice, which we’re confident But, more importantly, I’m looking inspection, and requested extra Sean Stevens, chief executive, we will.” forward to getting back to business information from applicants to says since he joined the company He welcomes the surety of as normal. ensure we have a full view of their in 2015 there had been no a five-year appointment after “Autohub is a link in the operations,” she says. requirement for formal reporting to more than a year spent on the supply chain above compliance “The extended process the transport agency, but it will now application process. and inspection agents. Changes has served our regulatory have to deliver quarterly updates. “It’s nice to know we have a downstream often require objectives of lifting the standards, “[The new contract] is contract going forward and can changes upstream, so we’ll see professionalism and integrity of reasonably different from what look at investing in the business what they may be. the industry, and working with we’ve had in the past with again. The next step is to put “Any improvement on the applicants to ensure successful  regard to auditing standards and investment in, and make our compliance auditing process is applicants are part of a robust requirements for information,” processes smarter, clearer and also welcome. For many years, model. We have also needed he explains. “There are further easier for everybody.” players in the industry have been to ensure successful applicants processes we need to put into the VINZ is looking at the extra expecting the NZTA to have more meet our expectations in the light-entry process that we haven’t expense that external auditing will involvement in the auditing of entry certification and border- used before. bring and its potential impact on things and we hope auditing inspecting sectors.” “There’s a requirement to the cost of services. will become a normal part of the The process has been run as a have external auditing as well as Stevens adds the company – process to keep the standards high. project, but the transport agency’s internal auditing, a requirement as is the case with all key service “It’s important for consumers provider licensing team will use to collect information we haven’t delivery partners (KSDPs) – is and the government to continue the new approach and lessons previously collected off a vehicle, also compiling feedback for the having confidence in the used learned from it in the future as a a requirement to report that transport agency to help streamline imports coming through.” “business-as-usual function”. information in a format other than future appointment processes. Willett understands the “The new process has been just putting it into the LANDATA “There’s some learning that agency will now require successful in making sure that a system, and to provide the agency both sides can take out of this. additional data at compliance full view of the applicants and their with quarterly reports. It has given both parties an and is disappointed businesses operations is assessed. This will be “It’s going to change the nature appreciation of what’s required to such as his were unable to have continued in any future application of how we inspect vehicles and it be done under this new system any input into making those assessments.” will require more time to do that. and how things were done decisions. “In retrospect, it Haridman says seven companies However, we’re putting together previously.” would have been nice if logistics applied for light-entry certification, systems to ensure we can keep up providers could have had with each one assessed on its own with these extra requirements with WELCOME CHANGES dialogue with the NZTA before merits and how they manage their as little labour input as possible.” Frank Willett, chief executive it set the regulations for KSDPs operations.

www.autofile.co.nz 9 news Essential to avoid complacency

ore operators in the community pulls together and instructions closely – particularly automotive industry sticks to the plan to get through around public tracing. may suffer from a loss this pandemic.” “Keep your team tight and Mof income and higher costs if New Everett says the car industry together. Meet regularly and Zealand is forced to continue shifting has shown remarkable resilience allow people to talk about between Covid-19 alert levels. to date, and has demonstrated issues. Recognise everyone is That’s the warning from the an ability to maintain activity under pressure to some extent Motor Trade Association (MTA) while doing so in a careful and or another, and watch out for with Auckland still in a level-three controlled manner. customers who don’t follow lockdown and the rest of the He adds it is essential for instructions and choose to step country in level two as Autofile complacency to be avoided. “You over or around barriers.” went to press on March 4. and your team’s prime concerns The MTA, Imported Motor “Generally, it is frustrating for must be their own welfare. There Vehicle Industry Association businesses to have to deal with is no room for the old adage, (VIA) and Motor Industry bouncing between the levels like ‘she’ll be right’.” Association have been kept busy this,” says Tony Everett, sector By and large, most businesses advising members through the manager – dealers. are now familiar with work coronavirus crisis. “However, we recognise the protocols and compliance VIA, for example, has fine line the government must requirements, with “we’ve got highlighted what the government walk between keeping businesses lockdown locked down” being one is offering in financial and other running and protecting the public comment made to Everett. forms of support to businesses in health of the community. His advice is to follow prescribed “You and your an email alert to its members. “These lockdowns affect protocols and stay safe. “We ask The measures include support staff attendance and impact on our members to be conscious of team’s prime for employers of people connected customers with loss of income pressures these situations place on to Auckland’s coronavirus cases, and unexpected family duties, staff and recognise they might have concerns must resurgence support payments, the which can mean vehicle-servicing issues to address in their personal or be their own leave support scheme and wage appointments are cancelled or family lives. subsidies. sales fall through. “Job security isn’t good in other welfare. There is Then there is the business “While the industry bounced sectors, such as hospitality, and no room for the finance guarantee scheme, business back from last year’s major hit, if we income or job losses might be cashflow and tax measures, small have too many small periods of up on the horizon for some. If in the old adage ‘she’ll business cashflow loans, insolvency and down we may see businesses unfortunate situation your business be right’.” relief for businesses, a commercial overwhelmed by extra costs and is identified as a Covid-19 ‘place lease dispute service and the loss of work. It’s imperative the of interest’, follow public-health – Tony Everett apprenticeship boost initiative. Marques gear up for ‘clean car’ talks he Motor Industry incentives it’s likely they still will not in mid-March for detailed discussions but deliver few gains in hitting Association (MIA) says be reached”, says David Crawford, on the CCIS’ policy settings. environmental targets, push up targets for the clean-car chief executive of the MIA. “We will be liaising with officials prices and limit model availability. Timport standard (CCIS) will be He notes the CCIS imposes and the Minister of Transport on The Motor Trade Association impossible to hit as being proposed. two goals. “These are a passenger- impacts once we have a better says the standard may make The government plans to enact vehicle target of 102 grams of CO2/ understanding of the likely rate of motoring more expensive, keep what’s also known as the fuel- km by 2025 and a light-commercial model-mix availability between older vehicles on our roads for economy standard from 2022, with vehicle target of 132gCO2/km by now and 2025,” says Crawford. longer and put jobs at risk. charges being imposed on importers 2025. This is a 40 per cent reduction “It goes without saying that Meanwhile, consultation on who miss their goals in 2023. between now and end of 2025.” the ability to swap out models for the Climate Change Commission’s The aim is to substantially While the target for light lower-emissions alternatives in the draft advice to government has lower average carbon dioxide commercials may seem the easier next four years remains the most been extended by two weeks until (CO2) emissions from light vehicles of two to hit, Crawford says this serious impediment.” March 28. It includes banning sales entering the fleet by 2025. isn’t the case because “it’s probably As reported in the February of vehicles with internal combustion But even with penalties being the more difficult due to lack of issue of Autofile, the Imported engines from at least 2035 and reduced until that year, without technical solutions for utes between Motor Vehicle Industry Association advocates for electric vehicles incentives the targets “will be now and 2025”. fears the proposed CCIS will bring to account for more than half of impossible to reach and with New-vehicle distributors will meet major disruption to businesses, imports by the same year.

10 www.autofile.co.nz www.autofile.co.nz 11 news Drive towards agency model

onda dealers are going through change as the marque revamps its agencyH model network. The company’s 17 independent agents and seven branches will start to shift to one of three business Honda NZ launched its Nelson concept store models from May to operate as in November 2020 stores, service stores or authorised service stores as it prepares to will allow branch and Honda NZ, which about Honda’s online offering. launch an e-commerce platform for independent agents has a “price promise” However, Sonoda-san expects direct vehicle sales. to continue to operate of no negotiation and the network’s size to largely remain Nobuya Sonoda, managing under a “one-team no discounting, also the same and says dealers have director of Honda NZ, told strategy”. recognises a need to shown a “general understanding of Autofile talks with dealers about The marque says the recruit a new generation the rationale” behind introducing the overhaul, which is designed shake-up will enable of buyers, many of whom the store concepts. to improve the buying process, people to buy vehicles Nobuya Sonoda have moved online. “There’s already an awareness are continuing. directly from Honda, The company saw of other brands making changes, “We’ve sat down with our either in-store or online. rapid growth in online purchases which are not altogether different. independent dealer agents to brief Its stores will allow clients to last year when the country Importantly, we are continuing them on the changes, including experience and buy new vehicles. was hit by lockdowns, while to talk through the changes what this means for them and us. Any sale will be directly with Honda buyers increasingly expect to and next steps with our agents. “Any change of this nature will NZ, not an independent agent, and be able to buy cars directly from Our relationships with them are always pose a disruption to our customers will receive full servicing, manufacturers via online platforms. important to us as they have served agents, which is why we are talking and genuine parts and accessories. “The changes are simply the brand well over many years, for with them about this, including the The service stores will service about Honda introducing an which we are very grateful.” three store options we are looking the marque’s vehicles. They will e-commerce platform that allows Sonoda-san says only time will to introduce. This is an ongoing also feature demonstrators and customers options to shop online tell if the agency model delivers a process and we will be in a better an appointed brand ambassador if that’s what they want,” explains greater share of the New Zealand position to share more detail in authorised to sell Hondas. Sonoda-san. “It won’t take away market. He adds there are “many coming months. Finally, the authorised service the importance we place on in- differences” to Toyota NZ’s Drive “The changes are about actively stores will be able to service store service and hospitality. That Happy Project, which was rolled managing our operations to ensure vehicles using only genuine parts remains a priority. out a few years ago and saw Toyota they are fit for the future and and accessories. “The purpose is to bring Honda shift to an agency-based system reflective of Honda’s long-term Sonoda-san says Honda NZ NZ closer to our customers and with fixed prices. commitment to continue investing was contemplating a restructure give them a greater purchasing Honda NZ introduced its own in our people, operations and of its network before Covid-19’s experience through our 20-years- “price promise” in May 2000 and communities. This is an exciting arrival although the pandemic has plus unique ‘price promise values’ Sonoda-san notes this has been a opportunity to shape our future in accelerated the changes. of fairness, transparency and key component for its loyal fan base. the interests of customers.” While the company has hospitality.” “There are many differences The immediate changes relate main cities covered, the new Details about which roles to the Toyota model. The major to Honda’s entire network of arrangements are being designed existing dealerships will fulfil remain difference is that our ‘price agents and branches. It is hoped to encourage agents to expand under wraps until nearer May’s promise’ is one fair price for all the three-tiered retail structure servicing and sales into other areas. transition, as is more information customers.”

process and the ability to make the Businesses wanting to join the right commercial decisions,” he says. network need to sell a minimum Odo-check changes The new partnerships come of 80 per cent AA-appraised used ahead of the launch of the AA’s vehicles. They must also have tidy A Motoring has signed up work with other companies. preferred dealer network, which is premises and a customer-first Jacanna and Bordercheck Jonathan Sergel, the AA’s due to take place this month. mentality, while freshly imported as providers of odometer general manager of motoring A key part of the network is vehicles will need to have gone verifications.A services, is delighted to have the requirement for dealerships to through entry compliance with The announcement comes Bordercheck and Jacanna on-board have AA odometer-verified window the AA. after the organisation announced in addition to JEVIC. stickers on newly imported vehicles. Dealers had until mid-December in December that it was ending an “By offering a further two “These new partnerships will to make an expression of interest to exclusive arrangement for Japanese options in this space, dealers now mean more quality dealers will be join the AA’s network, which is free imports with JEVIC so it could also have significant choice for this able to potentially join us,” says Sergel. to join.

12 www.autofile.co.nz Great companies understand loyalty

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common goal are just a few options purpose beyond just Significant research has been to consider. conducted on the effectiveness of points and profits.” cash versus non-cash rewards as There are many ways to design motivators for loyalty. It has been a programme specific to your proven that non-monetary incentives business. But, above all, the play a psychologically different role platform must be adaptable when compared to remuneration, and flexible to move and evolve bonuses or commissions. alongside inevitable change.

The right blend of compelling hard benefits – such as earn rates, points, Flexibility and power of choice Authenticity over everything discounts and deals – and bespoke Covid-19 serves as a reminder of soft benefits, like personalisation, Authenticity in communications is how swiftly things can change. Sales recognition and relevant information, now more important than ever – targets were suddenly rendered are critical to creating success in an overloaded customer or staff pointless throughout much of 2020 your loyalty strategy. member doesn’t want just another and businesses were forced to generic message. refactor their customer strategies Carefully designed programmes in a matter of days. Some of the connect with and address the needs Your loyalty programme is not just best brands across the world used of the people who matter. about sales, it’s about making their loyalty platforms to not only sure you put your stakeholder communicate with customers but to relationships front and centre. Design for change also support them in a time of need. During New Zealand’s first lockdown, Great companies and great loyalty Understanding your audience is for example, Smart Loyalty provided programmes have purpose beyond key to driving success. Whether it its members with the ability to just points and profits. be existing or new customers, your spend their points on a selection of staff or your customers’ employees, business essentials like food bags, Let us show you how loyalty can help knowing how to best communicate medical supplies, and alcohol. create exceptional relationships with with these stakeholders requires a The concierge reward service that your stakeholders. strategic approach. enables this meant that members of its various loyalty programmes could Visit smartloyaltyhq.com What might work extremely well for access additional support at a time one business might not work at all when they needed it most - loyalty at for the next, so the right strategy, its best.

www.autofile.co.nz 13 ev focus Mobility options in lockdown ata from hundreds of It was great to see been a reawakening to a what we can do to maintain the owners of electric vehicles people out walking and better work-life balance, pattern and encourage even (EVs) in New Zealand biking during lockdown, including avoiding more people to park their cars Dshows that we are using our cars while the health benefits long and unpredictable when practical and convenient less now, even well after the easing will have saved New commutes to and from travel alternatives exist. of last year’s lockdown periods Zealand millions of dollars the office. Flip The Fleet calculates that prompted by Covid-19. for months to come. Flip The Fleet will the average EV owner reduces For nearly all of April 2020, Some of us may have watch to see if these new greenhouse gas emissions by just only essential workers could drive changed our mobility Henrik Moller, co-founder, mobility patterns last. over 2,000kg of carbon-dioxide Flip The Fleet as normal, while families and patterns in more lasting Certainly, reduced car use (CO2) equivalent per year and, businesses were only allowed to ways. Outside Auckland, post- persisted for four months after all at the same time, saves just over make local trips to get provisions lockdown average monthly travel but Aucklanders were released from $2,000 in vehicle running costs. or medical care. was down from pre-lockdown in travel and gathering restrictions Why not get paid a dollar for So it’s unsurprising that travel January and February. In September last year. every kilogram of CO2 you avoid during that month by EV owners 2020, there was an eight per cent It’s unknown if people have emitting? signed up to Flip The Fleet was reduction compared to September now switched to using public And there are other bonuses. For just under one-quarter – or 22 per 2019 with the uncertainty band transport or are continuing to example, EVs provide a comfortable cent – of the kilometres clocked up being four to 13 per cent. walk and bike more, rather than ride and – for your “inner bogan” – a in April 2019. In normal conditions, To some degree, we have been defaulting to automatically using thrilling performance. EVs average 1,210km per month working more from home even their vehicles like they did before Switching to EVs from those with the uncertainty band being though our offices have once again the coronavirus lockdowns. with internal combustion engines 1,170km to 1,240km. fully opened. We have learned to It is important that we find (ICEs) is an important and cost- Schools partially reopened substitute remote ways of meeting out what has changed and effective first step to reduce the during alert level three, but people via the internet. For some there has why because this may show us risks and costs of climate change had to work at home if possible. for us and our children. When Auckland went back into Average distances travelled by EVs since January 2018 More fundamentally, however, level-three restrictions for the 1,500 we need to make and maintain Auckland last half of August, the average 1,000 fewer vehicles and drive them less, distance travelled again reduced irrespective of whether they have and this time to 60 per cent of 500 2018 ICEs or are EVs. previous levels. 2019 The more we can use car- 0 While these limitations were 2020 sharing schemes, public transport, 1,500

painful for many families and Rest of NZ our bikes and “te waewae express” businesses, there were some silver 1,000 – getting about on our feet – the linings to the shock. better we will all be. 500 These included families I hope that the Covid-19 Average distance travelled (km) distance travelled Average spending more time together, 0 lockdowns have given us a shake-up the air in our cities being cleaner, Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec and glimpse of new mobility options reduced average driving speeds The coloured bands in this graphic show the 95 perMonth cent uncertainty bands around the average that are better for our lifestyles, the monthly distances as estimated by Daniel Myall’s statistical modelling of data Flip The Fleet has. because of more local and town The whole of New Zealand went into Covid-19 alert level-four lockdown on March 26, 2020. economy and our environment. Restrictions on movement were then eased back to alert levels three, two and one from April 28, motoring, the easing of traffic May 14 and June 9 respectively. Henrik Moller is a retired sustainability congestion and fewer road A second coronavirus outbreak triggered a return to alert level three in Auckland, and the rest of New Zealand to level two on August 12, before each were then stepped down a level on scientist. Additional research by Daniel accidents. September 21. Myall and Dima Ivanov.

Pressure is growing on Marque making the switch carmakers worldwide to meet tough carbon-dioxide emissions aguar Land Rover (JLR) is aiming Jaguar and other luxury targets in Europe and China. for its luxury Jaguar brand to marques are grappling with the Bans on the sale of new petrol be all-electric in five years’ time transition to EVs while trying to and diesel cars are also looming andJ to launch electrified models of retain the power that combustion- in some jurisdictions, with the UK its entire line-up by 2030. engined models are renowned for. planning to outlaw them by 2030. The company, owned by India’s JLR says it will keep all three of technologies, connected vehicle Bentley Motors, which is owned Tata Motors, also wants Land its UK plants open as part of its new services and developing hydrogen by Germany’s Volkswagen, aims Rover to launch six pure electric electrification strategy. fuel cells with prototypes using this to be fully electric by 2030, while vehicles (EVs) by 2025 with the first It plans to spend about NZ$4.8 technology slated to be on British General Motors harbours similar expected to be released in 2024. billion annually on electrification roads within the next year. ambitions for 2035.

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Industry movers Man from AA takes

MURRAY STEVENS has joined Avanti Finance as its South Island regional manager for automotive sales. on industry policy role He has been associated with the motor-vehicle industry for more than 20 years, initially as a business ark Stockdale says his Another highlight was, after manager for franchised and non-franchised dealerships. extensive experience assessing the evidence, supporting For the past 15 years, Stevens has been involved in the transport sector the review of the frequency for in all aspects of vehicle finance, including floorplans and bailment willM stand him in good stead for warrants of fitness. This resulted in facilities. his new position with the Motor annual inspections for light vehicles Industry Association (MIA). built from 2000 onwards. NICOLE BOTHERWAY has been appointed senior Stockdale worked for the He cites a notable manager of safer vehicles at Waka Kotahi – the NZTA. AA for 16 years, most recently moment with the AA as She has taken over the role from Neil Adams, who as principal adviser, and years of advocacy for service is retiring. She is leading much of the regulatory joined the MIA as its full-time stations to display the price compliance work being done with inspecting principal technical adviser on of premium-grade petrol Mark Stockdale organisations and vehicle inspectors. March 1. He was previously on roadside boards finally Botherway, who is based in Hamilton, joined the agency as general executive officer at the Bus and coming to fruition following the manager of its regulatory services office in January 2020. Her career has Coach Association for nine years. recommendation in a Commerce strong regulatory emphasis with senior roles at NZ Post and Waikato “I’ve worked in the transport Commission inquiry, “itself something Regional Council. sector for nearly 25 years, particularly the AA wanted for several years”. in the policy area, so I have plenty “This is a relatively minor change KRISTIAN AQUILINA is now managing director of knowledge of legislation, for servos, but will have a big at Cadillac’s international operations and Cadillac regulations and rules, doing impact on many motorists who Middle East based in Dubai. analysis, preparing submissions and have no choice to buy premium He was previously chairman and managing director advocacy,” he told Autofile. grade. It should bring to an end the of GM Holden, and headed up Holden NZ from 2015-18. During his time at the AA, he days of servos charging an extra 30 Aquilina says his time at retired marque will always be “an important worked closely on various policy cents or more for premium, which part of me, the lion’s legacy will endure and everyone involved with issues with the car industry. could never be justified.” Holden can be very proud”. One of his proudest achievements Stockdale replaces Leo Mortimer, at the AA was his commentary on who held the position on a part- DAVID COLWELL has taken over as chief executive fuel prices to educate consumers of time basis until earlier this year. officer of Cox Automotive Australia and New Zealand the proportion of the petrol price that David Crawford, the MIA’s chief from Rob Whitten. is tax, which comes in at more than executive, says Stockdale brings an Colwell, pictured, joins the company most recently $1 per litre. “There is now a greater extensive knowledge of transport from Inchcape, where he was global business public awareness of the big role this safety and environmental matters development director based in London. has on dictating the retail price.” to the role. Martin Forbes, president of Cox Automotive International, says: “David’s global experience in automotive will stand him in great stead to lead operations through the next chapter of growth and success.” Inspection company fined Whitten, who became CEO at Cox Automotive for Australasia in 2017, is retiring from working in a full-time executive capacity. ehicle Inspection New losses at Hamilton District Court Zealand (VINZ) has been last month. STEVE PRANGNELL has been appointed as general ordered to pay more than Danielle Henry, of WorkSafe NZ, manager of new-vehicle sales at Toyota NZ. $500,000V in fines and reparations says the investigation identified In late 2018, he had been in new-vehicle sales for following a death at its testing steps that could and have since the marque about 12 years before becoming general station in Hamilton. been implemented by VINZ. manager of sales and operations. Prangnell has been The accident happened in The company attended the with the company since November 1983. February 2019 when a vehicle sentencing hearing on February 18 driven by a staff member was in after previously pleading guilty to MELANIE TEMPLETON is now an independent director with MTF Finance. collision with a customer, who breaching sections of the Health Templeton’s executive roles have included interim group executive, later died in hospital. and Safety At Work Act. general manager and head of marketing with RaboDirect Australia and A WorkSafe NZ investigation Sean Stevens, chief executive, New Zealand. found the company had policies says: “VINZ accepts the outcome She is currently chairwoman of PledgeMe Ltd, an independent based on the risk to pedestrians of the court process in relation to director for Xerra and sits on Inland Revenue’s independent risk and on-site, but did not actively what was a tragic accident.” assurance committee. implement or enforce them. WorkSafe NZ has established VINZ was fined $225,000 and new guidelines relating to site TO FEATURE IN INDUSTRY MOVERS EMAIL [email protected] ordered to pay the victim’s family traffic management that are $278,885 for emotional harm and available on its website.

16 www.autofile.co.nz ADTORQUE EDGE Keeping clients key to success

n relation to selling vehicles, and in individual customers’ ownership Even if it was obtained elsewhere, our industry predominantly businesses, we need to cycles and help them you should be able to obtain this operates in a reactionary consider implementing through that. information. natureI with a sale starting from some or all of the Consider the There are plenty of ways to an enquiry. following suggestions. situation when the stay in contact with the customer Enquiries are what drive buyer is put on a five- productively during his or her volumes – the more enquiries the POINT OF RESALE year loan when his or ownership cycle. more sales, the less enquiries the It’s important to her ownership cycle is lower the sales result. remember whatever TODD FULLER normally three years. IMPLEMENTING PROCESS Such a strategy does work, but you do at the point of General manager It may have The repeat purchase, or retention AdTorque Edge NZ sales teams have to work harder sale affects the resale. sounded like a great process, for a dealer is different to as every buyer needs to be “sold” The sale process is not only “deal” to the customer and trader the sales process. to – the salesperson needs to build important to the initial transaction. at the time, but the reality is the While it’s about sales, it requires a rapport with the customer before How customers perceive this buyer was being set up to be different skills and processes to the selling the car and finance. process and the delivery of the disappointed. After reaching the traditional transaction, which starts We all know and understand vehicle has a significant impact on normal repurchase time, the client from a “cold” enquiry. that repeat purchases from whether they give the dealership would in all probability be in Why not look into appointing existing clients form the pinnacle the opportunity for their next negative equity. a retention manager, who has the of the business. They provide more purchase. Now consider the scenario skills and capabilities to implement gross margin, normally higher Ensure the process goes where the customer has a five-year and manage the process. finance penetration, trade-ins and smoothly for buyers. Negotiations cycle and the finance period was Customers can still be passed to servicing. are not stress tests for them and for that period. This is generally an the sales team ready to purchase, Yet, repeat purchases are they buy packages they are really easier process for the dealership but until then they should be generally not a high proportion of after – that’s to say, the vehicle, and buyer in putting the latter into managed by the retention a dealership’s sales. It’s important options, finance and delivery. the vehicle he or she wanted and manager and or that department. we understand why this occurs and when it was needed. People are always going to consider methods and changes OWNERSHIP CYCLES purchase new vehicles. The point that can be implemented to help Most people finance their car MARKETING TO BUYERS is whether they are going to respond and lift the percentage of purchases. Even if this isn’t done Ask yourself this question – how repurchase from the dealership repeat purchases. through a trader, they generally get well does your dealership stay in they bought their last vehicle from Our sales team and processes finance via another source. contact with its customer base? or from somewhere else. are generally trained, and have the What dealerships don’t When we say this, we don’t skills associated with the conquest normally do is understand how mean the typical email sent by How we handle customers during sale – the enquiry comes in and the long people tend to keep their the dealer to the customer on a the initial purchase and the process starts. vehicles. Most have a preferred regular basis. ownership cycle will affect whether We are reactionary in nature ownership period, which could Consider how the business stays they repurchase from you. with marketing strongly designed be three years or is increasingly in touch with the client during the Repeat customers require less around attracting customers, not becoming five or six. ownership cycle, and then markets marketing costs, are easier to maintaining existing relationships. The dealer needs to understand services or accessories specifically sell to, and generally provide a If we want to increase the the ownership cycle and help to that person and his or her car. greater return to the dealership percentages of repeat buyers and finance the car for that period. In It’s a good idea to maintain a and more finance penetration repurchases across our industry this manner, we then understand record of when the finance finishes. opportunities.

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www.autofile.co.nz 17 supercars

onths of fevered anticipation have ended with the unveiling of the firstM T.50, which features a nod to McLaren’s F1 of the 1990s. The supercar by Gordon Murray Automotive has a limited run of just 100, with production slated to start in early 2022. The company claims the T.50, which will command a price-tag of NZ$4.64 million, has “the most advanced aerodynamics of any ‘Most advanced’ road car”. With a three-seat cabin, mid- mounted V12 engine and light aerodynamics ever kerb weight, it boasts four separate modes, which increase downforce by 50 per cent, reduce drag by 12.5 per cent and cut 10m off the braking distance from 241kph. The radical centrepiece of these aerodynamics is the 400mm fan mounted at the rear, which forces air passing under the car through control ducts that form part of the rear diffuser. Thanks to its carbon-fibre build, the T.50 weighs in at just 986kg, which Murray claims is about one- third lighter than most supercars.

It employs a brand-new The GMA T.50 has finally made its debut Cosworth 3.9-litre aspirated V12 engine producing 488kW of power and 467Nm of torque, coupled with a mid-mounted 6.5-litre engine screens, racing bucket seats with more on the dual-power engine a six-speed manual transmission. tuned to produce more than four-point harnesses and F1-style set-up, which incorporates Formula Lightweight forged alloy 619kW, making it the marque’s rectangular steering. E-derived battery technology with double-wishbone suspension is most powerful V12 made to date. With only 40 examples available, a four-litre twin-turbo V8. used front and rear. Inside, the T.50 Power is delivered to the rear owners of the SCV12 will join a The output from the V8 totals has a central driver’s seat, flanked wheels via a six-speed gearbox. club so they can drive on famous 557kW and 800Nm, making it the by two passenger seats. The Essenza features “extreme racetracks around the world. second-most powerful iteration The T.50 has been designed as a aerodynamic enhancements” of the V8 behind the track-bred celebration of Murray’s career and that make it perfect for the track, MAMMOTH TOP SPEED Senna. Extra power is provided by promises to be “the most driver- producing a massive 1,200kg of McLaren has revealed details of a lithium-ion battery and electric centric supercar ever made”. It gets downforce at 250kph. its latest flagship, the Speedtail, motor that’s able to produce its name from being the 50th vehicle At the front of the car, the hood which sports one of the highest top output of 270kW. he has designed in his 50-year career. has a double air intake with a central speeds of any production car. That figure is impressive when rib, which separates the hot airflow When it was first revealed in considering the size of the battery PURELY FOR TRACK coming from the radiator and October 2018, fans heard it would pack, only 1.647kWh, which the The covers have been ripped off the channels cold air to a roof-mounted be powered by a 787kW petrol- brand claims is the best of any Essenza SCV12, a speed machine air-scoop. The rear features a fixed electric hybrid powertrain that high-voltage battery today. limited to just 40 units worldwide. wing spoiler and diffuser. offered 0-300kph in 12.8 seconds Engineers integrated the The non-road-legal Inside, it is purely track-focused with a top speed of 403kph. inverter and DC/DC converter into Lamborghini is underpinned by with no infotainment or display Now the company has revealed the electric drive system. The cells are immersed in an insulative oil Lamborghini’s Essenza SCV12 that wicks heat away from the cells. Combined output for the powertrain, which has aerodynamic enhancements, is 787kW. Like the F1, only 106 examples of the Speedtail will be built with a McLaren’s Speedtail price-tag of about $3.44m.

18 www.autofile.co.nz tech report Carbon dividends help cut pollution

s most people are aware, know they can bid up acceptable without of a carbon tax. These include the end of January to $3,000 more for it. regard to whether the the surgical targeting of emitters, saw the release of the The importer loses all system is fit for purpose administrative costs estimated to Aproposed clean-car import incentive and the cost in New Zealand. be 10 per cent that of a CCIS and standard (CCIS) and draft advice to the buyer stays the There is a real simplicity because the only lever is to government from the Climate same, but taxpayers concern about natural the price of carbon. Change Commission (CCC). have funnelled that justice by prioritising Unlike a carbon tax, the Even if someone doesn’t incentive overseas specific industries. dividend is not regressive. Poorer understand or agree with the directly to an auction KIT WILKERSON Why is it the supply people consume the least and need to tackle global warming company. Policy adviser and analyst of vehicles is being those who consume the least [email protected] based on scientific evidence, legal The penalties will be targeted more benefit the most from the pay-out. requirements remain because undermined similarly. If aggressively than the The dividend is also not New Zealand has signed up to importers know a vehicle will incur supply of meat? dependent on a multitude of international treaties to make a $3,000 charge, they will know My biggest concern with the piecemeal standards. It’s fair changes. they can only bid up to what the current approach is a political because every industry is included However, if the CCIS and CCC’s consumer will pay minus $3,000. one – neither the CCC nor the CCIS and penalised equal to the amount proposals go ahead as they stand, The price of these cars will drop at address public buy-in. I’m dubious of GHGs it emits. it appears the government’s auction. consumers will accept being It would even, in fact, replace solutions to reducing greenhouse In both instances, the penalty beaten by sticks, promised more the emissions trading scheme. gases (GHGs) will be piecemeal, and credit are offset beatings tomorrow The public would benefit from unfair and unpopular. by respective drops and so on for the efforts to reduce GHGs. Each industry will have its own and increases in foreseeable future. Even when costs are passed regulator, targets and goals. Some demand. Feebates, “Some sectors, What we are back to the consumer, the latter is sectors, such as transport, are if implemented, will such as discussing is a plan ultimately repaid but industries are viewed as low-hanging fruit. simply double-down to make most parts not. The only way for industries to Others are being given more on that dynamic. transport, of our lifestyles mitigate costs is to cut their GHG time to adapt or come up with their The new-car are viewed as more expensive. emissions. own solutions – an opportunity the industry is a bit Some goods I recognise there is an effort automotive industry would have different, but not low-hanging will be replaced with the CCIS’ approach to force appreciated and the government much. New Zealand’s fruit” with low-carbon changes with as few sticks as should have allowed. brands are just alternatives. I can possible. In some cases, such Take the CCIS. It’s simply not official importers and have little change my gas barbecue with as with electric cars, even a few designed for our fleet dynamics. direct influence on manufacturing an electric one, but for many carrots are being proposed. It has been created to force decisions made offshore. people there may be no near-term But hiding the penalty is only manufacturers overseas to make In their case, parent companies alternatives. going to make the public blame more efficient vehicles. will likely maintain their prices on There is a solution that is sparking distributors of goods or services, We have no domestic penalised vehicles and make local significant discussion overseas not policies that are driving up manufacturing with most vehicles distributors absorb the penalties and that’s a carbon dividend. It’s prices. Or, even worse, the public imported into New Zealand having but will raise their prices on a tax based solely on the price of will blame distributors and not started life overseas. Importers bid subsidised vehicles, thus funnelling carbon on all fuels and goods that their own personal choices or against each other to buy them in those subsidies directly to them. produce emissions during their behaviours. source markets. The fact that a standard has manufacturing or production. The approach now being taken Consider what will happen been implemented elsewhere This tax, however, is periodically uses economic penalties in a way when we tell all importers they will seems to be the only evidence refunded in its entirely back to that will be solely borne by New get a $3,000 subsidy for importing this “evidence-led government” voting-age residents and citizens. Zealanders to force them to change a specific model. Importers will requires. This seems to be The dividend has all the benefits their behaviours.

Advocate  Advise Advise  Connect • Advocate • Connect

Imported Motor Vehicle Industry Association

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www.autofile.co.nz 19 newslooking back The month that was... March

March 2, 1998 March 11, 2005 Importers take on distributors Industry still waits and waits War appeared to have been declared between importers Concerns were mounting across the industry as Land of used Japanese cars and new-vehicle distributors. Transport New Zealand (LTNZ) continued to delay its Nissan and Toyota had sent legal letters to a decision on roles in its proposed entry-compliance number of dealers known to be bringing in and regime. selling stock manufactured after January 1997. For months, transport service delivery agents – VINZ, The dispute was made public when Auto Court, VTNZ, On Road and the AA – had kept plans on hold of Dunedin, revealed the contents of a letter it received from Nissan NZ while they awaited confirmation on the way forward. threatening action unless it stopped selling the marque’s near-new cars. The announcement was due in October 2004, but the earliest it could The distributor offered to buy a 1997 Terrano Regulus and other qualifying now come was at LTNZ’s next board meeting on March 24. Nissans that Auto Court had on-site for the lower end of the brand’s Chris Drake, VINZ’s chief executive, said although he could understand assessment of the wholesale values or actual direct costs of importation. the need to make the right decision, it had been “very unsettling” not Rick Armstrong Motors in Christchurch also received correspondence knowing what the future held. from Nissan and Toyota following the sale of about 70 near-new vehicles “It’s very disappointing they’ve been unable to reach a decision,” he added. from its yard. Both dealerships said they were not going to accede to the Stella Stocks, general manager of technical services at the AA, agreed. distributors’ demands. “We need a decision because the continuing delays are affecting the The Imported Motor Vehicle Dealers’ Association said eight members industry commercially.” had received letters from distributors and chairman John Nicholls said it LTNZ spokesman Andy Knackstedt said: “The board is aware of the high was backing them. level of interest in its decision among industry groups. A sub-committee “We believe the overall circumstances by which these vehicles arrive has been established to allow deliberations to continue without the time in New Zealand require careful study by the government,” he added. constraints of a full board meeting.”

March 20, 2000 March 19, 2010 Rover dealers face uncertain future Big is beautiful Franchise holders were poised on a knife edge Since mid-2008, the Holden Commodore had been of uncertainty over selling Rovers in this country the number-one selling vehicle at Turners Auctions following the sale of the parent company by BMW for dealers and the public. to Alchemy Partners. And that popularity looked set to continue with The new UK operation, to be called the MG Car the large passenger vehicle taking top spot in the Company, said it would continue with Rover’s current fourth quarter of 2009 and prices still being strong model range and maintain service to its customers. at auctions. The disposal of Rover to Alchemy excluded Land Rover and Mini, Despite fluctuation in the cost of petrol at the pump and the which were to be retained by BMW. likelihood of prices again rising during 2010, there was still strong Geoff Fletcher, managing director of BMW NZ, said while the company demand for larger vehicles. would honour its service commitments to Rover customers, it was unlikely “Kiwis generally still like their big cars,” said Todd Hunter, chief to continue as the agent for the marque in New Zealand. operating officer of Turners Auctions. “BMW hasn’t been making money off Rover, so there’s no reason for us “Prices for these vehicles go up and down because of fuel prices, but to stay involved,” he added. prices at auction are still strong for them. There has been an increase in While agreeing BMW had committed considerable resources to the prices in the past 14 to 15 months for larger cars. However, it looks as Rover brand in New Zealand, Fletcher said it was too early for the full local if there is stability in the market now. People are extending their leases impact of the sale to be known. and new-vehicle sales are slow.” He added any money BMW AG made out of Rover was dissipated by the Stock sold at Turners was ex-lease models bought by dealers and the pound’s strong exchange rate compounded by falling sales in Europe. public, but the company was struggling to source those vehicles. Don’t go searching for news. Let the news come to you.

Subscribe now to INSIGHTfor twice-weekly updates www.autofile.co.nz/subscribe 20 www.autofile.co.nz Moving forward with disruption y conversations with and $25 respectively. a punt on trade-ins that plans will achieve the desired result dealers over the past You also need to might not have made or are they window dressing to look few weeks indicate the recognise that electric sense previously. like something is being done? Mclean-car import standard (CCIS) vehicles (EVs) are And traders are the Industry-supplied new and and Climate Change Commission’s expensive options right best placed to know used vehicles will quickly increase draft advice to government are top now and “price parity” is values. The consumer in price, but other travel options – of mind. still a long way off. sector is usually slower such as better public transport and During these chats, traders A recap on some to pick up and react to cycleways – won’t develop as fast. invariably question how they’re experts’ past predictions TONY EVERETT trends. Without alternatives, many going to manage the outcomes suggested parity would Sector manager – dealers, As a case in point, buyers will look to the existing Motor Trade Association from these policies. already be here. It’s I was interested to fleet for replacements and will However, recognising the funny how these things typically hear a story from a dealer only face risks when purchasing in the nature of a business is all about slip outwards. Some pundits are a couple of weeks ago on his private market with no Consumer looking to make the best of the now saying parity may not arrive eagerness to accept a buy-back Guarantees Act protection. situation and for the angles. until around 2027. from an unhappy client albeit it on As many other industry There’s not yet enough detail in CCIS credits and rebates will help agreeable terms because he knew commentators have already said, these two announcements to make close the gaps, but we’re still unlikely he could now sell that same vehicle perhaps it might be better to big decisions, but there is enough to see a $25,000 electric car anytime for quite a bit more. manage all this through a fuel tax to conclude things in the dealer soon, unless there is a significant Some traders are saying it might with such proceeds used to directly sector will change. technological breakthrough. now be time to call it quits. This is subsidise electrified vehicles. The key at this stage is to not get EVs are also expected to be perhaps a natural and unsurprising If you spend a bit of time too buried in negative thoughts. in short supply for many years, reaction, but any disruption in the playing with the numbers, you will Perhaps it’s better to allow yourself so even if local demand existed industry always opens some new be surprised at the possibilities. to look for the opportunities and supply might not. doors. Life will go on, albeit in a A fuel tax could be implemented there will be some. On that basis, vehicles with slightly different way. much more quickly without the That said, it seems irrefutable internal combustion engines If you currently specialise in two-year lead time and have that prices of new and used will remain the dominant part of medium to large vehicles, SUVs or immediate effect on the whole fleet vehicles will increase. our market for a while, so CCIS people movers, will you have to – not just the 300,000 or so annual The penalty rates under the CCIS penalties won’t be offset by credits. diversify into hybrids and EVs to earn incoming volumes. are yet to be fully defined. A previous The residual will have to be passed a few credits? If you don’t, will your As we have seen in the past, discussion paper proposed $100 per on in the form of price rises. competitors have a pricing edge? fuel prices can have an immediate gram of carbon-dioxide emissions for Periods of price change can These are the types of questions that effect on consumer behaviour. That new vehicles and half of that for used make trading easier because astute will arise in the future. seems like a much easier plan from imports. More recent speculation operators will be second-guessing The nagging question in my mind where I’m sitting and, perhaps, for suggests it might be closer to $50 future values and be willing to take is whether the government’s CCIS most dealers as well.

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www.autofile.co.nz 21 new cars Redesign creates ‘unified identity’ aserati has renewed its range with the Ghibli, Quattroporte and MLevante sporting distinctive model- year features. The aim of the exterior changes is to give the models “a unified identity by creating a common language”. Also making its debut is active driving assist (ADA). While recognising this as a “valuable asset”, Maserati also wants to The 2021 Ghibli S Q4 GranLusso “remain faithful to its philosophy as a manufacturer of race-bred grand tourers with dynamics capable of an unparalleled driving experience”. It describes ADA as an “evolution” of highway assist introduced in its 2018 model year. Previous versions could only be The Levante GranSport The Quattroporte S Q4 GranLusso used on motorways, but it can now be used on all well-maintained and speed of the preceding vehicle, sportier “black piano” in GranSport. and body-coloured spoiler. roads up to 145kph with adaptive while highway assist includes a The transformed rear end The Quattroporte GranSport cruise control activated. radio to provide road information includes a new light cluster in has centre and side air intakes to The system employs a radar and and hands-on-wheel detection that what’s dubbed as “boomerang improve the cooling function. forward-looking camera, and works the driver can override. design”. It is inspired by historic The bumper’s lower fascia is with electric power steering to Back to those exterior design models and features across the linked to the grille with splits. The control direction. changes. The Ghibli’s updated marque’s 2021 line-up. back is characterised by a central The multi-function camera front grille is now characterised by To emphasise the shape, the panel and two cut-outs on the detects horizontal road markings, Maserati’s tuning fork. It comes in clusters have been made with 3K outside edges to focus attention on and then calculates the distance chrome with GranLusso trim and injection moulding technology. the exhausts. Thanks to this, the unit has a three- The Levante combines “coupé colour lens – black around the lines” with interior space for five edge, red in the middle and clear in people and aerodynamic efficiency. VEHICLES WANTED the bottom. The SUV’s grille was inspired The cluster is produced in two by the Alfieri concept and pays DEALERS BUYING NOW versions – black for “black pack” homage to historic models, such as trims and lighter for GranLusso, and the Tipo 60. LATE MODEL FORDS & MAZDAS WANTED is achieved by varying the colour of With GranSport trim, the the internal upper surround. Levante’s side air intakes in the Alongside the adaptive full lower fascia are defined by two LED matrix headlights, the Ghibli wings, visually “pushing” the nose GranLusso’s trim boasts chrome towards the front wheels. The side front-bumpers inserts, body- bezel blades and splitter have Call Jason Robb colour side skirts, black brake been styled to improve airflow Ph 0274 133 222 calipers and 19-inch alloys. The distribution. GranSport has red brake calipers Its wider rear end has a sharper and 20-inch alloy wheels. horizontal element and a body- Automotive excellence since 1993. An identifying detail of the colour lower extractor embracing Your ocial Audi, Porsche, Jaguar, Land Rover and Volvo dealer Quattroporte in GranLusso trim is the four exhaust tips. its front lower-fascia design with “With these models, the a floating-bridge element and imminent arrival of the Ghibli Wellington understated splitter rounded off hybrid, a full complement of high- 66 Cambridge Terrace, Te Aro, Wellington | 04 887 1306 with a chrome bumper finish and performance Trofeo editions and the body-colour bumper profiles. all-new MC20 supercar, 2021 is set to To advertise here, contact: The profile incorporates side be an exciting year,” says Glen Sealey, skirts, while the rear has a retro- chief operating officer of Maserati [email protected] or ph 021 455 775 reflector integrated in the car’s line Australia and New Zealand.

22 www.autofile.co.nz new utes Extra power across range

From left, the SR5 Cruiser, SR5 and SR grades of the 2021 Hilux

he 2021 Hilux is turning larger, heavy-duty turbocharger Towing remains unchanged cyclists, dynamic-radar cruise control, up the heat in the hotly with a ball-bearing cartridge for at 3,500kg maximum braked on lane-departure alert with yaw assist contested utility market strong throttle response, and a new diesel models and 2,500kg on and road-sign assist. withT a more powerful turbo-diesel common-rail injection system with a WorkMate models. In addition, the SR5 and SR5 engine, extra capability and a higher maximum fuel pressure. The 2021 Hilux retains its full Cruiser gain front and rear parking tougher exterior. Higher outputs in the 1GD range of electronic braking and sensors. When the system detects The range features a bolder engine have been supported by a traction-control technologies, objects, it alerts the driver with front end on most of its 18 variants, redesigned cylinder-head gasket, emergency stop signal, reversing a buzzer and a message on the and a 2.8-litre turbo-diesel engine strengthened block, new pistons, camera, seven airbags and multi-information display. offering 15 per cent extra power and new exhaust manifold and reminders for all seatbelts. Pricing starts at $28,990 for the and 11 per cent more torque than gasket materials. All variants have Safety Sense. automatic 2WD 2.7P WorkMate its predecessor. Fuel consumption in diesel 2021 This package includes a pre-collision single cab and tops out at $58,990 The marque has boosted output Hilux variants is up by 11 per cent system with autonomous emergency for the 4WD 2.8TD SR5 Cruiser from the 2.8-litre turbo diesel 1GD on outgoing models with carbon- braking for vehicles, pedestrians and double cab. engine, which now develops 150kW dioxide emissions dropping by five and 500Nm in variants with the per cent. six-speed automatic transmission. On the SR, SR5, and SR5 Torque with the six-speed manual Cruiser, normal drive mode is remains at 420Nm. supplemented by two extra modes. VEHICLES WANTED Maximum torque is now available The “eco” setting reduces across a wider range of 1,600- throttle response in favour of 2,800rpm for the automatic and fuel economy and cuts power Toyota SUVs & Utes 1,400-3,400rpm with the manual. consumption for heating and Toyota has improved performance cooling, while “power” mode and fuel economy by adopting a provides sharper acceleration. Back with black ord NZ has secured a tailgate handles are all finished in – • • limited run of the Ranger yup, you’ve guessed it – black. Hilux Land Cruiser Prado Wildtrak X with upgrades In addition, there are overF the standard model. illuminated scuff plates for the These include a black nudge front doors and unique seat bar, a 20.5-inch slimline LED bar, materials with accent colours. 18-inch black alloys with 35mm The addition of the Wildtrak offsets and wheel-arch flares now X, which is priced from $75,490, in ebony black. builds on Ford NZ’s fresh arrivals We are always looking to purchase late model Also in black are the side steps, for this year. front grille sabre accent “nostrils” With the FX4 MAX, updated NZ NEW CARS AND COMMERCIALS and rear sail plane. X, and introduction of the bi- And the roof rails, box rails, turbo and 10-speed transmission lower front-bumper insert, rear XLT, Ford believes the Ranger is miles motor group bumper, headlamp bezels, mirror strongly positioned to maintain its caps, fender features, and door and market leadership in 2021. PAUL CURIN 0274 333 303 [email protected]

www.autofile.co.nz 23 motorsport Hard road brings rewards

esilience, loyalty and sheer speed – Brendon Leitch is putting last year Rbehind him and making plans for international racing. Driving his favourite Toyota Racing Series (TRS) single-seater, Leitch stormed to a four-from-four victory in the new Formula Open category at t the Skope Classic meeting at Ruapuna near Christchurch last month. “The FT-50 is great and it took me to some great results in the TRS. I loved getting back behind the wheel of that car again.” Leitch racing in the ITM FT50 at Hampton Leitch’s all-conquering Skope Brendon Leitch Downs in 2016. Photo: Bruce Jenkins result comes hot on the heels of a hard-fought sixth place behind his the field after starting in the pits. “We got there on FT-40s and Tom never brother Damon at January’s New “The grand prix was epic and I the Friday and the gave up. We were Zealand Grand Prix. had a fantastic battle with Shane,” car would only run “You choose pushing each other Hampered by a hand injury Leitch, of Invercargill, told Autofile. on three cylinders in between the onward.” picked up in a previous race, he “It was good to get behind the the practice sessions. hard way and Fastest laps in still duelled with eventual winner wheel of a single-seater again.” Things didn’t look each race were shared Shane van Gisbergen over several By contrast, his weekend in good but some help the easy way. between Alexander laps as the latter charged through Ruapuna didn’t start well. from [Toyota Gazoo The hard and Leitch, with the Racing category latter posting the chief] Nico Caillol way offers overall fastest lap of got the issue sorted the greater the weekend – and and I went out and reward” thus a class-lap record UNLOCK qualified second on – of 1:19.912 for the some pretty old tyres.” 3.033km Ruapuna circuit. His time EXHILARATING The new Formula Open was almost two seconds quicker PERFORMANCE category has been established to than that of the fastest Formula give competitive late-model single- 5000 cars present. Nothing tests engine oil like a motorsport vehicle being pushed to the limits. Not only do we work alongside leading car seaters, such as the classic Formula Brendon Leitch rose through manufacturers - many who exclusively recommend Castrol EDGE Pacific-Atlantic cars, Formula karting and stepped up to Formula - but we also test our oils with leading motorsport teams and Renault racers, and the TRS’ FT-40s Ford in 2009. He arrived in the TRS partners on the track and in the workshop. Our technology is and FT-50s a place to race. in 2014 having finished second built on the bedrock of their great achievements. The Skope weekend became overall in Formula Ford the Castrol EDGE 10W-60 is the official oil of theCastrol a TRS reunion with Leitch, TR 86 previous year. Toyota Racing Series – Tested to the EXTREME. champion Tom Alexander and In that first TRS season he ran TRS stalwart Sam MacNeill among with Nelson-based Victory Motor those running the series’ cars. Racing. He was 16th in a field of 24 “Every race was a battle. The that included his brother Damon, FT-40s have less aerodynamic Nick Cassidy, F1 world champion and lower drag, so they were Nelson Piquet’s son Pedro very fast off the line and into the and a raft of ambitious young first corner. It became a matter of internationals. getting in front of Tom and Sam, The following year, Leitch and then hunting down the lead.” stepped up to an FT-50 and the All four Skope races were wins started to come. rolling starts. This meant Leitch He was third overall in 2016 had to be quickest to react and behind Lando Norris and Jehan chase down the older FT-40s, Daruvala, beating Pedro Piquet which he generally achieved and Ferdinand von Habsburg in within the first lap. the process. British driver Norris “The battles were awesome. We went on to race in Formula 1, had to work hard to get past the joining the McLaren team in 2019. 

24 www.autofile.co.nz motorsport

Brendon Leitch with this parents Barry and Marguerite in 2016. Leitch in Formula Open category at the Skope Classic Photo: Bruce Jenkins at Ruapuna in February. Photo: Terry Marshall t In 2017 – again racing an FT-50 The Southlander is as adept at “That was a hard time to deal Leitch is still a-buzz with his with Victory Motor Racing – Leitch endurance racing in sports cars and with. I had to draw deep on my Skope performance. It was the won by a record margin at the tourers as he is in a single-seater. passion and determination to first time he had raced at the Taupo TRS round. He scored two When Covid-19 struck last come through, but I think you big southern weekend. In fact, other podiums, one pole and one year, he was on the verge of choose between the hard way and it was the first time he had been fastest lap. announcing a major northern the easy way. The hard way offers there since he was 11 years old Stepping away from TRS in hemisphere drive, a career step the greater reward.” and helped put a crash-battered 2019, he was second overall in the that the pandemic cancelled. The support of long-time sponsors Porsche back together. Lamborghini Trofeo Pro-Am series. In the sudden silence as Deb and Martin Day – the couple He is now on the rebound after Across all non-kart categories, championships around the world behind Leitch’s ITM sponsorship – coronavirus wrecked his plans to Leitch has competed in 199 races were halted, Leitch thought he have helped him through. race in Europe last year. Although with 12 wins and 46 podium might have faced early retirement. “They have been amazing. They his planning for 2021 has yet finishes. He has set fastest laps nine A qualified mechanic, he says came on-board in my early TRS to be finalised, there are strong times and started from pole on he could have given up his years and we’ve worked together indications this will be a fast and seven occasions. international aspirations. ever since.” busy year for Leitch. Paddon pulls out of rally across the ditch ew Zealand’s Hayden A Subaru Impreza. Bourne led Paddon has withdrawn home a top 10 that also included his entry for the opening two other Kiwis, Geof Argyle and Nround of the RSEA Safety Motorsport Reece Jones. Australia Rally Championship in It’s a busy year for Paddon, Canberra this month. who will contest the New Zealand He was to have switched from Rally Championship in his AP4+ his locally built AP4+ Hyundai Hyundai i20. i20 to drive an i20 prepared to Hayden Paddon in action at the He is the only driver in the world 2019 Eureka Rally in Australia international R5 regulations. to have driven a current Hyundai The withdrawal has come that would have meant he couldn’t until July, missing the first three World Rally Car, an AP4+ and an i20 as a result of Covid-19 border be back here and ready to race rounds of the NZ championship.” prepared to global R5 rules. restrictions between this country until June or July. The Canberra event has special “The R5 is a nice car. It has some and Australia. “It’s disappointing,” he says. significance for Paddon. Although strengths and some weaknesses Paddon was faced with “While we could get to Australia, he hasn’t contested it before, he compared to the AP4. It’s easy and committing to his New Zealand current travel restrictions would was a spectator there 20 years balanced to drive. While there are Rally Championship campaign and then have meant we wouldn’t be ago and watched Kiwi legend differences between the AP4 and a one-off outing across the Tasman able to get back into New Zealand Possum Bourne win in a Group R5, there are many similarities.”

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www.autofile.co.nz 25 disputes

The case: The buyer wanted Adjudicator backs consumer’s rejection to reject his Volkswagen Amarok after spending more than $4,000 on repairs and discovering – only of vehicle because of engine damage a month post-purchase – that it had a cracked cylinder head. The trader disagreed. It claimed the Background Blampied had the vehicle The finding ute had a warped cylinder head Michael Blampied wanted to reject serviced and replaced the coolant The trader’s evidence showed the that had been repaired prior to it the 2014 Volkswagen Amarok he reservoir, water pump, cambelt, vehicle had been serviced, and its being supplied, and the vehicle had no ongoing defects. purchased for $26,000 from AZN exhaust gas recirculation (EGR) valve water pump, battery and timing Motors Ltd on May 17, 2020. and its cooler at a cost of $4,871.70. belt were replaced pre-purchase. The decision: The tribunal He alleged the vehicle had Five days after the Amarok was The tribunal noted Continental upheld the buyer’s rejection and significant undisclosed damage returned, it again overheated. He Cars did that work because it found ordered the trader to pay him $27,156.60. that caused it to overheat and returned it to Continental Cars on “no history” of those items replaced, excessively consume coolant. June 30. It said the head was cracked but there was no evidence to show At: The Motor Vehicle Disputes Blampied said he was told and a new engine was needed. this needed to be done. Tribunal, Auckland. by AZN Motors that the VW had Blampied was charged $1,156.60 It was satisfied the ute had a been recently serviced, but he for that assessment, which included fault with its EGR valve and cooler, caused it to overheat so it required had to spend more than $4,000 removing the engine. and its cooling system needed expensive repairs. on maintenance and repairs soon Blampied then rejected the the remedial work performed by Therefore, Blampied was after purchase. ute saying it wasn’t of acceptable Continental Cars. entitled to reject the vehicle under He wanted to recover the quality under the terms of the However, Blampied wasn’t section 18 of the CGA because the purchase price, and money spent on Consumer Guarantees Act (CGA). entitled to any remedy under the pre-existing damage was a failure servicing, diagnosing and repairing But the dealer claimed the CGA for those repairs because he of a substantial character. the defects. vehicle was serviced before it was didn’t give AZN Motors a reasonable Blampied was also entitled The trader said the engine had sold, and the water pump and opportunity to fix the ute. to recover the $1,156.60 cost been assessed by two independent cambelt were replaced. It produced But the tribunal did accept the of having the engine damage garages prior to purchase and both an invoice dated January 17 from All dealer’s evidence that the cylinder assessed by Continental Cars. found it had a warped cylinder Euro Parts showing the purchase of head was warped rather than AZN Motors submitted head, which was repaired before a cambelt kit and water pump. cracked. Blampied shouldn’t be entitled to the ute was sold. And an April 27 invoice, issued The warped head prevented recover that cost because it was by Smales Automotive Repairs, the head gasket from creating a excessive and he should have The case noted the ute had a full service and tight seal between the cylinder returned the ute for diagnosis. Before purchase, Blampied was told its battery, rocker-cover gasket, head and block, allowing water The tribunal stated Blampied by Barnaby Bews, a sales manager timing belt and water pump were to escape from the jacket had no legal obligation to allow the at the dealership, that the Amarok replaced. surrounding the combustion dealer to perform that task and the had been recently serviced. AZN Motors submitted chambers into the head. cost wasn’t excessive. On June 13, the coolant-level Continental Cars’ repairs were The trader’s evidence showed warning light came on and the ute unnecessary and if Blampied had the warped head was pre-existing Orders overheated. contacted it before authorising them, damage, which meant it wasn’t of The tribunal upheld Blampied’s Blampied found no coolant in he would have avoided that cost. acceptable quality for the purposes rejection of the ute. It ordered the system so, suspecting a fault, The dealer also claimed of section six of the CGA because AZN Motors to pay the $26,000 he took the vehicle to Continental Continental Cars misdiagnosed a reasonable consumer wouldn’t purchase price and the $1,156.60 Cars in Newmarket. the damage. It said the engine expect a $26,000, six-year-old assessment cost to the buyer, a It reported the ute hadn’t been had been assessed by Marsh Amarok to have such a problem. total of $27,156.60. recently serviced because there Motorsports and Taylor Automotive Also, a reasonable consumer who The CGA contains no requirement was no service record, its oil was pre-purchase, and they found it was fully acquainted with the extent for the seller to be given first dirty and various defective parts had a warped cylinder head. It of the damage wouldn’t have bought opportunity to diagnose a fault. would have been identified during added the engine was repaired and the vehicle – the warped cylinder That requirement only applies to a service. there were no ongoing defects. head affected its performance and recovering the cost of repairs.

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26 www.autofile.co.nz disputes

The case: Two months after the Dealer was victim of ‘con artist’ and let trader supplied a Porsche Boxster, it realised the purchase price hadn’t been paid and repossessed it. The down by its ‘lax accounting processes’ dealer sought $21,034 in expenses. However, the respondent said a “con artist” had bought the vehicle Background Reid messaged that the banker had a hard job finding and the trader should pursue him In July 2020, Archibalds Motors Ltd respondent wanted a manual it as I make payments simular for any monies owing. lodged a claim to recover $21,034 convertible and supplied a phone [sic] to that at least four The tribunal ruled in expenses in respect of a 2009 number. Clarke emailed Reid a times a week to charities”. The The decision: it wasn’t able to make an order Porsche Boxster it repossessed listing, phoned the respondent information never arrived. against the respondent under the after the $59,990 purchase price and reported back to Reid that she As Unger’s requests became Contract and Commercial Law Act wasn’t paid. was “keen” on the vehicle. more insistent, Reid’s responses (CCLA) and dismissed the case. The dealer claimed the Archibalds’ business manager, became less plausible, the tribunal At: The Motor Vehicle Disputes respondent agreed to buy the car Allen Wang, also contacted Reid heard. On March 17, Reid claimed Tribunal. on December 28, 2018, but two about payment and delivery was that, after the “incident that months later realised it hadn’t arranged for December 28. happened in Christchurch”, his been paid for. Before delivery, Wang told “work in the national intelligence pay as follows: sale price, incl GST, The respondent told the Clarke he hadn’t received the community is overwhelming at $59,990”. It also stated: “The trader tribunal that Bruce Reid, also necessary paperwork from Reid, this moment in time”. shall be entitled to take action known as James, was “a notorious who emailed Wang on December On March 19, Archibalds told against the purchaser for the price con artist who has engaged in 22 saying he had “transferred the the respondent the car hadn’t of the vehicle.” many frauds”, adding a police funds today so they may not show been paid for. Four days later, Although the VOSA’s terms investigation into the matter was at your end till Tuesday”. Based on Reid told the dealer he had were unambiguous, the under way. that, Wang told Clarke that Reid been “embezzled” of more than background in this case pointed She said Reid bought the car as had transferred the funds. $200,000, but he would make to a different interpretation. The a gift and Archibalds should pursue After Christmas, Wang realised payment on March 29. context was the Boxster was a gift him for any outstanding money. that wasn’t the case. He emailed Murray Gorton, general for the respondent, who didn’t The respondent signed the Reid on December 27 asking him to manager of the Archibalds Group, agree to pay for it. This was known vehicle offer and sale agreement pay for the Porsche by direct credit. then suggested the respondent and understood by Archibalds at (VOSA) because she thought – as Although Archibalds knew pay for the vehicle rather than it the time it sold the car to Reid. did Archibalds – that Reid had Reid hadn’t paid, it still dispatched being repossessed. The evidence showed the paid the purchase price. the car to the respondent. On That was the first suggestion trader was the victim of a The tribunal can make orders delivery, Reid showed Clarke two the trader had turned its focus fraud committed by Reid. The through the CCLA under which bank transactions on his cellphone towards the respondent to dealer also let itself down by its a party may cancel a contract amounting to $59,990, but it wasn’t recover the purchase price. “extraordinarily lax accounting if another party repudiates it. until March that Archibalds realised On April 1, Unger emailed processes in this instance”, noted Repudiation occurs when a party the money hadn’t been paid. Reid and the respondent that the adjudicator. makes it clear it doesn’t intend to Simon Unger, Archibalds’ Archibalds was taking legal action The tribunal found this was complete its obligations under business manager, phoned Reid against them for payment. The an appropriate case to adopt a the contract. The tribunal can on March 4 advising there was no respondent was happy to return contextual interpretation of the grant relief if doing so is just and record of payment and emailed the Boxster, but it had broken VOSA. On that basis, it concluded practicable. him the next day asking for the down “in a serious puff of black the respondent never agreed to payment dates. Reid replied saying smoke” because the clutch had pay Archibalds any money for The case he would call into his bank the failed. the Boxster, so the VOSA didn’t On December 17, 2018, “Dr James next day to get that information. provide the dealer with any basis Reid” emailed Jarrod Clarke, On March 11, Reid emailed The finding for its claim. Archibalds’ general manager for Unger saying he would pick Archibalds’ claim was based Porsche, enquiring about a Boxster up the payment details that on the VOSA signed by the Order on its website. afternoon and his “personal respondent. This stated: “I agree to The application was dismissed.

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JAPAN Nagoya 23 Feb 2 Mar 17 Mar TBC Yokohama 25 Feb 3 Mar 18 Mar 2 Apr Auckland 10 Mar 18 Mar 1 Apr 17 Apr Lyttelton 16 Mar 27 Mar 6 Apr 24 Apr Wellington 15 Mar 29 Mar 7 Apr 26 Apr

NEW ZEALAND Nelson 12 Mar 30 Mar 13 Apr 27 Apr

Phone 0800 ARMACUP (0800 276 2287) Shipping to email [email protected] www.armacup.com t h e Whangareid Auckland Hamiltonc Thameso nTauranga Rotorua Gisborne Napieru uNew Plymouth Wanganui Palmerston North n oMasterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga t r Rotorua Gisborne Napier New Plymouth Wanganui r

A Palmerston North Masterton Wellington Nelson y Total new cars Blenheim Greymouth Westport Christchurch Timaru Total imported used cars Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne 8,710 Napier New Plymouth Wanganui Palmerston North 9,096 2020: 7,911  10.1% F Masterton Wellington Nelson Blenheim 2020: 10,747  15.4% YOUR FIRST CHOICE IN SHIPPING Greymouthe Whangarei Auckland Hamilton Thames b 21 ruar y 20

Our services include: Whangarei Thames NEW: 182 2020: 155 17.4% NEW: 106 2020: 91 16.5%  NZ Customs clearance  NZTA inspections USED: 192 2020: 258 25.6% USED: 86 2020: 69 24.6% Auckland Tauranga  MPI inspections  Odometer verifi cation NEW: 3,557 2020: 3,625 1.9% NEW: 445 2020: 356 25.0% USED: 4,159 2020: 5,056 17.7% USED: 359 2020: 455 21.1%  Insurance  Delivery nationwide Hamilton Rotorua NEW: 690 2020: 554 24.5% NEW: 142 2020: 136 4.4% USED: 557 2020: 766 27.3% USED: 129 2020: 162 20.4%

New Plymouth Gisborne

NEW: 143 2020: 149 4.0% NEW: 48 2020: 31 54.8% USED: 158 2020: 156 1.3% USED: 52 2020: 82 36.6%

Wanganui Napier

NEW: 116 2020: 86 34.9% NEW: 273 2020: 242 12.8% USED: 66 2020: 89 25.8% USED: 205 2020: 191 7.3%

Palmerston North Masterton

NEW: 279 2020: 212 31.6% NEW: 95 2020: 62 53.2% USED: 275 2020: 266 3.4% USED: 68 2020: 60 13.3%

Nelson Wellington

NEW: 112 2020: 110 1.8% NEW: 871 2020: 716 21.6% USED: 171 2020: 203 15.8% USED: 752 2020: 799 5.9%

Westport Blenheim

NEW: 1 2020: 3 66.7% NEW: 66 2020: 48 37.5% USED: 4 2020: 4  0.0% USED: 57 2020: 55 3.6%

Greymouth Christchurch

NEW: 14 2020: 16 12.5% NEW: 1,095 2020: 723 51.5% USED: 30 2020: 19 57.9% USED: 1,228 2020: 1,277 3.8% LATEST SCHEDULE Timaru NEW: 66 2020: 95 30.5% Dream Beauty Grand Pace Turandot Don Juan USED: 102 2020: 230 55.7% Port Calls v2104 v2105 v2106 v2107 Oamaru

NEW: 10 2020: 15 33.3% Moji 21 Feb - 15 Mar - USED: 13 2020: 23 43.5%

Osaka 22 Feb 1 Mar 16 Mar 1 Apr Dunedin

NEW: 273 2020: 307 11.1%

JAPAN Nagoya 23 Feb 2 Mar 17 Mar TBC USED: 297 2020: 331 10.3%

Yokohama 25 Feb 3 Mar 18 Mar 2 Apr Invercargill Auckland 10 Mar 18 Mar 1 Apr 17 Apr NEW: 126 2020: 179 29.6% USED: 136 2020: 196 30.6% Lyttelton 16 Mar 27 Mar 6 Apr 24 Apr Wellington 15 Mar 29 Mar 7 Apr 26 Apr FINANCE TO SHIFT Y OUR Your Vehicle

NEW ZEALAND Nelson 12 Mar 30 Mar 13 Apr 27 Apr Import Finance BUSINESS IN TO TOP GEAR Specialist

Phone 0800 ARMACUP (0800 276 2287) Shipping to email [email protected] To find out more visit us at www.blackbirdfіnance.co.nz or www.armacup.com call us on 0800 000 999

www.autofile.co.nz 29 Imported Passenger Vehicle Sales by Make - February 2021 Imported Passenger Vehicle Sales by Model - February 2021

FEB '21 2021 YEAR 2021 FEB '21 2021 YEAR 2021 MKT MAKE FEB '21 FEB '20 +/- % MAKE MODEL FEB '21 FEB '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 2,594 2,668 -2.8 28.5% 5,214 28.2% Toyota Aqua 663 445 49.0 7.3% 1,324 7.2% Mazda 1,311 1,715 -23.6 14.4% 2,663 14.4% Mazda Axela 456 576 -20.8 5.0% 909 4.9% Nissan 1,204 2,024 -40.5 13.2% 2,582 14.0% Toyota Prius 377 384 -1.8 4.1% 781 4.2% Honda 804 1,115 -27.9 8.8% 1,679 9.1% Honda Fit 323 510 -36.7 3.6% 696 3.8% Subaru 636 660 -3.6 7.0% 1,277 6.9% Nissan X-Trail 288 148 94.6 3.2% 567 3.1% BMW 463 364 27.2 5.1% 898 4.9% Mazda Demio 280 411 -31.9 3.1% 582 3.1% Volkswagen 438 337 30.0 4.8% 898 4.9% Volkswagen Golf 255 218 17.0 2.8% 534 2.9% Mitsubishi 391 448 -12.7 4.3% 777 4.2% Mitsubishi Outlander 253 237 6.8 2.8% 494 2.7% Suzuki 250 515 -51.5 2.7% 472 2.6% Subaru Impreza 213 260 -18.1 2.3% 418 2.3% Audi 235 197 19.3 2.6% 483 2.6% Toyota Corolla 196 193 1.6 2.2% 407 2.2% Lexus 158 130 21.5 1.7% 319 1.7% Suzuki Swift 193 432 -55.3 2.1% 369 2.0% Mercedes-Benz 153 121 26.4 1.7% 324 1.8% Toyota Vanguard 185 119 55.5 2.0% 367 2.0% Volvo 60 53 13.2 0.7% 125 0.7% Toyota Wish 173 211 -18.0 1.9% 335 1.8% Ford 53 87 -39.1 0.6% 116 0.6% Subaru Legacy 172 217 -20.7 1.9% 356 1.9% Land Rover 42 41 2.4 0.5% 78 0.4% Mazda CX-5 164 101 62.4 1.8% 321 1.7% Jaguar 35 25 40.0 0.4% 70 0.4% Toyota MarkX 157 76 106.6 1.7% 311 1.7% Mini 35 20 75.0 0.4% 61 0.3% Nissan Leaf 151 235 -35.7 1.7% 359 1.9% Porsche 33 12 175.0 0.4% 56 0.3% Mazda Atenza 135 199 -32.2 1.5% 302 1.6% Chevrolet 23 33 -30.3 0.3% 47 0.3% Toyota Blade 126 105 20.0 1.4% 237 1.3% Hyundai 22 26 -15.4 0.2% 44 0.2% Mazda Premacy 121 172 -29.7 1.3% 240 1.3% Jeep 22 13 69.2 0.2% 47 0.3% Nissan Note 108 180 -40.0 1.2% 217 1.2% Dodge 21 20 5.0 0.2% 40 0.2% Subaru Forester 100 73 37.0 1.1% 198 1.1% Holden 16 26 -38.5 0.2% 37 0.2% Nissan Serena 97 122 -20.5 1.1% 197 1.1% Kia 11 10 10.0 0.1% 24 0.1% Honda CR-V 96 87 10.3 1.1% 210 1.1% Chrysler 7 15 -53.3 0.1% 19 0.1% Honda Odyssey 96 76 26.3 1.1% 216 1.2% Citroen 6 4 50.0 0.1% 9 0.0% BMW 320i 92 59 55.9 1.0% 189 1.0% Bentley 5 5 0.0 0.1% 10 0.1% Toyota Vitz 90 210 -57.1 1.0% 162 0.9% Peugeot 5 8 -37.5 0.1% 26 0.1% Volkswagen Polo 89 39 128.2 1.0% 158 0.9% Alfa Romeo 4 0 400.0 0.0% 5 0.0% Nissan Skyline 85 103 -17.5 0.9% 187 1.0% Chrysler Jeep 4 4 0.0 0.0% 5 0.0% BMW 116i 68 56 21.4 0.7% 148 0.8% Daihatsu 4 2 100.0 0.0% 6 0.0% Nissan Fuga 60 52 15.4 0.7% 151 0.8% Pontiac 4 1 300.0 0.0% 4 0.0% Toyota Camry 59 45 31.1 0.6% 111 0.6% Fiat 3 4 -25.0 0.0% 4 0.0% Nissan Juke 55 110 -50.0 0.6% 121 0.7% Maserati 3 0 300.0 0.0% 4 0.0% Subaru Exiga 53 38 39.5 0.6% 100 0.5% Mercury 3 1 200.0 0.0% 5 0.0% Ford Crown 51 18 183.3 0.6% 91 0.5% Others 38 43 -11.6 0.4% 72 0.4% Others 3,016 4,230 -28.7 33.2% 6,135 33.2% Total 9,096 10,747 -15.4 100.0% 18,500 100.0% Total 9,096 10,747 -15.4 100.0% 18,500 100.0%

WHAT DO YOU WANT ü SOLID COMPANY ü QUALITY VEHICLES FROM YOUR ü CHOICE & VARIETY OF STOCK ü EXPERIENCED AGENTS contact: Taka Arimoto VEHICLE SUPPLIER? ü DEALER ONLY SUPPLIER email: [email protected] ü GREAT VALUE FOR MONEY www.heiwa-auctions.com

30 www.autofile.co.nz Used imports slow to arrive mporters of used vehicles circumvent these choke points by at Auckland, while the remainder are being warned the normal moving vehicles to other facilities in Drop in sales were subsequently dropped at three to four-week wait for Japan has contributed to creating other ports on a sailing cycle,” There were 9,096 used-imported Istock to arrive from Japan may now backlogs at those locations too. notes Willett. “Currently, they are cars sold for the first time in New end up being a few months. “At the moment, people may Zealand last month. That was a decrease all offloaded at Auckland for MPI That’s because there is so much buy a car at auction and not of 15.4 per cent when compared to 10,747 checks before being trans- pressure on the global supply chain see it on a vessel for four to six registrations in February 2020. shipped to other locations, in the wake of disruptions caused weeks when previously that The Toyota Aqua came top of the models’ which causes extra delays. ladder for the month with 663 sales for a by the Covid-19 pandemic. used to happen within days.” “This became an issue when 7.3 per cent share of the market. Frank Willett, chief executive of Demand for space on vessels Next up were the Mazda Axela on Covid first struck and the MPI Autohub, says factors here and in for new vehicles has also grown. 456, Toyota Prius with 377, Honda pulled its staff back from Japan. Japan, along with the Australian Willett reports manufacturers in Fit with 323 and Nissan They were operating at 14-plus market snapping up more used Japan are trying to clear backlogs X-Trail on 288. facilities in Japan conducting pre- vehicles, are contributing to backlogs. of orders and often require more export verifications, but all vehicles “Dealers who are used to having space than they have pre-booked. sporadic interruptions to berth are now being verified through stock on their doorstep within three This leads to used vehicles getting vessels because of shipping-lane one port, which is Auckland.” or four weeks from the time of “bumped” off until the next sailing. closures for the America’s Cup.” Volumes were fairly subdued at purchase should now realise we are “Multiple logistics service Willett adds the concentration the height of the pandemic, which in different times,” he told Autofile. providers are vying for set space, so of verifications by the Ministry for meant the industry was able to cope “While it would be three to four it can be quite competitive to get Primary Industries (MPI) in Auckland with the situation, but as the market weeks under normal circumstances, vehicles on their way in a timely is another factor in the hold-ups. tries to get back to normal the strain these aren’t normal circumstances manner. Once a vehicle is on a Previously, MPI inspections on the system is increasing. and they may have to wait a couple vessel heading to New Zealand, we were performed in Japan, but “All parties, including the MPI, of months for a vehicle.” then face a backlog in Auckland, it the government recalled staff in are fully aware of how things are He says dealers getting back being the first port of call. March 2020. currently jammed up and everyone to buying following a lull last year “We have Covid-19 overlaid “It used to be that Auckland- is trying to work towards sensible because of coronavirus restrictions procedures that impact the flow bound vehicles and those for solutions where they can get and market uncertainty has led of practices in certain areas and trans-shipment were offloaded things flowing again.” to a “tsunami of vehicles coming Willett says delays for container from Japan”. services to ship vehicles have also Used Imported Passenger Registrations - 2018-2021 At the same time, Australia increased because of a worldwide is taking up to 1,200 used cars shortage of containers. a month compared to about 14,000 “A couple of key things in the 300 previously, which is putting next couple of months will be if pressure on companies doing pre- 12,000 the new-vehicle market catches export cleaning overseas. up with its orders and gets back 10,000 “Some of those yards are to normal stock-importing cycles. also handling used vehicles for 8,000 If the MPI reverts to offshore New Zealand, but the Australian verification in Japan that would be market has elbowed its way in and 6,000 another choke point removed. 2018 increased volumes have created “We’re all affected by this and 4,000 2019 a choke point, particularly in the 2020 it’s no one party’s fault. Everybody 2021 Tokyo area,” explains Willett. 2,000 is working as hard and as quickly “This is creating delays for New as they can to get things through Zealand imports to be processed 0 as fast as the system allows. At the Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec in a timely manner. Attempts to moment, the key word is patience.”

WHAT DO YOU WANT ü SOLID COMPANY ü QUALITY VEHICLES FROM YOUR ü CHOICE & VARIETY OF STOCK ü EXPERIENCED AGENTS contact: Taka Arimoto VEHICLE SUPPLIER? ü DEALER ONLY SUPPLIER email: [email protected] ü GREAT VALUE FOR MONEY www.heiwa-auctions.com

www.autofile.co.nz 31 www.mmnz.biz Car deliveries being delayed trader in south Auckland Prices are higher for good quality. moment. We have had about 10 cars Being unable to get overflow trades is feeling the heat We have finally seen a firming of waiting and they can take up to two from franchises has been tough. caused by market prices whereas those for used cars weeks to get through compliance, “I think the lack of stock will get Aconditions overseas and supply- were dropping before Covid-19. which is a big issue for us.” fly-by-nighters out of the market. chain disruption. “There’s a lot of competition As for what else has been I’ve been in the industry for 28 Craig Wall, owner of Wall Motors and not just from New Zealand. happening on-shore, Wall says years and we want real people in it in Onehunga, south Auckland, says There are other markets there was a follow-through of – not those who just want to make there is a lot of competition to buy competing as well and shipping is stock in 2020, “so this year may be a quick buck.” good-quality used cars from the slow – often more than six weeks. harder if we struggle to get it”. Japanese market. “On average, it used to take He adds: “We had a couple USED IMPORTS TUMBLE “We have bought the odd about four weeks from the day of our best months for a long The number of used passenger car out of the US. But they take you bought a vehicle in Japan for time last year and then we had vehicles imported last month came too long to get here so we get it to arrive in New Zealand. There a couple of bad ones because of in at 9,380. This was a drop of 20.4 vehicles out of Japan, and buy is also a wait with the inspection the lack of stock. per cent on February 2020’s total locally off the internet from of cars at the border because it’s “New-car franchises are having a of 11,789. Autotrader and Trade Me. stink-bug season in Japan. good run, but they are also low on Some 8,759 came in from Japan “You just have to work harder “It’s also taking longer to get stock. There are long wait lists and and 286 from Australia. Next up to get stock and you can’t give up. vehicles through compliance at the they are keeping more trade-ins. was Singapore with 140 units.

USED IMPORTED PASSENGER VEHICLE ARRIVALS

20,000 19,000 18,000 17,000 16,000 15,000 14,000 2019 13,000 12,000 2021 11,000 2017 2018 10,000 2020 2015 9,000 2016 2014 8,000 7,000 6,000 4,000 2013 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

Used Imported Passenger Vehicles By Country Of Export

2020 2019 COUNTRY OF EXPORT 2021 JAN ’21 FEB ’21 FEB MRKT SHARE % 2021 TOTAL Q1 Q2 Q3 Q4 2020 TOTAL MRKT SHARE 2019 TOTAL MRKT SHARE Australia 303 286 3.0% 589 1,053 876 1,001 1,255 4,185 3.9% 5,148 3.6% Great Britain 110 124 1.3% 234 184 122 143 241 690 0.6% 894 0.6% Japan 10,917 8,759 93.4% 19,676 33,191 13,662 25,627 28,514 100,994 92.9% 132,494 93.8% Singapore 128 140 1.5% 268 384 337 601 524 1,846 1.7% 1,678 1.2% USA 34 34 0.4% 68 169 79 126 106 480 0.4% 664 0.5% Other countries 31 37 0.4% 68 54 129 170 115 468 0.4% 340 0.2% Total 11,523 9,380 100.0% 20,903 35,035 15,205 27,668 30,755 108,663 100.0% 141,218 100.0% Door-to-Door vehicle shipping experts To and from Japan, USa, UK, aUSTralia, Singapore, and The pacific Ph +64 9 303 0075 www.mmnz.biz ContaCt us today!

32 www.autofile.co.nz Listed company eyes up growth he chairman of NZ by cross-selling to them it can and David Sena have entered into 30 cents below the listing price. Automotive Investments originate loans “with effectively no escrow arrangements with NZAI, NZAI’s revenue was $73.6m (NZAI), which owns 2 Cheap marketing or acquisition costs”. which has established a dividend for the year to March 31, 2018, TCars, says the company’s NZX-listing David Page, chief executive policy with a target pay-out ratio followed by $78.4m in 2019 and will support its expansion. officer, says the long-term strategy of 50 to 60 per cent of annual $76m in 2020. Covid-19’s impact “We believe the listing offers is to leverage the retail business underlying net profit after tax. saw its revenue in 2021’s first half an investment opportunity that is to build a diversified automotive As a direct listing, the company drop by 22 per cent year on year underpinned by Kiwis’ demand for group. “With strong governance issued no new securities and its to $30.4m. affordable, safe and reliable second- and management in place, NZAI 45.5 million ordinary shares were hand cars,” says Karl Smith. “It will is focused on implementing its priced at $1.30 to value it at more SALES DROP RECORDED support NZAI’s long-term growth, strategic roadmap for growth.” than $59m at launch. There were 15,737 second-hand in particular access to capital in the Established a decade ago, Smith says listing rules required cars sold by dealers to the public future for expansion of its recently 2 Cheap Cars sells more than NZAI to have a certain shareholder in February – down by 3.2 per cent established finance company.” 10,000 units a year through 12 spread. Last year it raised $3.5m compared to the same month of That’s NZ Motor Finance, dealerships – down from 17 in 2019 from early-adopters, staff and 2020 when there were 16,259. which has been set up because – and accounts for about eight per non-affiliated wholesales with each Trade-ins came in at 12,066 for a about one-third of 2 Cheap Cars’ cent of all used-car imports. investing a minimum of $1,000. decrease of 3.8 per cent compared customers need finance and Co-founders Eugene Williams Those shares were priced at $1 each, to 12,544.

SECONDHAND CAR SALES - February 2021

DEALER TO PUBLIC PUBLIC TO PUBLIC PUBLIC TO DEALER REGION FEB '21 FEB ’20 +/- % MARKET SHARE FEB '21 FEB ’20 +/- % FEB '21 FEB ’20 +/- % Whangarei 511 530 -3.6 3.25 1,831 1,901 -3.7 174 213 -18.3 Auckland 5,135 5,448 -5.7 32.63 13,090 13,905 -5.9 4,753 5,268 -9.8 Hamilton 1,197 1,231 -2.8 7.61 3,265 3,422 -4.6 958 967 -0.9 Thames 254 254 0.0 1.61 593 574 3.3 175 180 -2.8 Tauranga 752 746 0.8 4.78 2,028 2,154 -5.8 532 483 10.1 Rotorua 329 338 -2.7 2.09 1,003 1,000 0.3 118 114 3.5 Gisborne 132 151 -12.6 0.84 456 409 11.5 55 48 14.6 Napier 604 597 1.2 3.84 1,547 1,534 0.8 427 394 8.4 New Plymouth 370 371 -0.3 2.35 962 987 -2.5 194 218 -11.0 Wanganui 229 219 4.6 1.46 599 578 3.6 128 130 -1.5 Palmerston North 710 665 6.8 4.51 1,703 1,676 1.6 632 658 -4.0 Masterton 199 171 16.4 1.26 465 505 -7.9 91 92 -1.1 Wellington 1,507 1,471 2.4 9.58 3,237 3,152 2.7 1,037 1,034 0.3 Nelson 310 260 19.2 1.97 1,048 1,071 -2.1 168 189 -11.1 Blenheim 176 160 10.0 1.12 412 506 -18.6 95 78 21.8 Greymouth 63 70 -10.0 0.40 190 192 -1.0 45 32 40.6 Westport 5 5 0.0 0.03 42 35 20.0 0 2 0.0 Christchurch 1,931 2,106 -8.3 12.27 4,905 5,243 -6.4 1,737 1,740 -0.2 Timaru 196 322 -39.1 1.25 491 693 -29.1 96 84 14.3 Oamaru 40 33 21.2 0.25 139 135 3.0 12 7 71.4 Dunedin 721 740 -2.6 4.58 1,948 2,056 -5.3 418 395 5.8 Invercargill 366 371 -1.3 2.33 1,093 1,163 -6.0 221 218 1.4 NZ Total 15,737 16,259 -3.2 100.00 41,047 42,891 -4.3 12,066 12,544 -3.8

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www.autofile.co.nz 33 new cars

New Passenger Vehicle Sales by Make - February 2021 New Passenger Vehicle Sales by Model - February 2021

FEB '21 2021 YEAR 2021 FEB '21 2021 YEAR 2021 MKT MAKE FEB '21 FEB '20 +/- % MAKE MODEL FEB '21 FEB '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Mitsubishi 1,105 764 44.6 12.7% 2,107 11.4% Mitsubishi Outlander 595 304 95.7 6.8% 984 5.3% Toyota 1,058 1,093 -3.2 12.1% 2,480 13.5% Kia Sportage 370 228 62.3 4.2% 744 4.0% Kia 1,056 751 40.6 12.1% 2,408 13.1% Kia Seltos 364 281 29.5 4.2% 751 4.1% Mazda 733 580 26.4 8.4% 1,541 8.4% Mazda CX-5 360 233 54.5 4.1% 662 3.6% Suzuki 571 494 15.6 6.6% 1,290 7.0% Mitsubishi ASX 319 291 9.6 3.7% 694 3.8% Ford 436 408 6.9 5.0% 805 4.4% Suzuki Swift 311 217 43.3 3.6% 558 3.0% Hyundai 431 557 -22.6 4.9% 1,017 5.5% Toyota RAV4 284 419 -32.2 3.3% 755 4.1% Nissan 396 409 -3.2 4.5% 716 3.9% Toyota Corolla 230 198 16.2 2.6% 483 2.6% Honda 369 415 -11.1 4.2% 733 4.0% Nissan X-Trail 201 115 74.8 2.3% 335 1.8% Volkswagen 327 288 13.5 3.8% 647 3.5% Hyundai Santa Fe 181 107 69.2 2.1% 338 1.8% MG 226 103 119.4 2.6% 484 2.6% Ford Puma 172 0 17,200.0 2.0% 209 1.1% Audi 174 142 22.5 2.0% 325 1.8% Honda HR-V 159 140 13.6 1.8% 307 1.7% BMW 171 144 18.8 2.0% 362 2.0% Nissan Qashqai 159 244 -34.8 1.8% 317 1.7% Peugeot 168 112 50.0 1.9% 239 1.3% Toyota C-HR 133 73 82.2 1.5% 354 1.9% Mercedes-Benz 167 189 -11.6 1.9% 393 2.1% Mitsubishi Eclipse Cross 133 110 20.9 1.5% 311 1.7% Subaru 167 295 -43.4 1.9% 400 2.2% Honda CR-V 132 98 34.7 1.5% 241 1.3% Jeep 125 84 48.8 1.4% 187 1.0% Volkswagen Tiguan 117 136 -14.0 1.3% 139 0.8% SsangYong 114 71 60.6 1.3% 205 1.1% Ford Escape 116 135 -14.1 1.3% 221 1.2% Land Rover 113 90 25.6 1.3% 298 1.6% Toyota Yaris 93 146 -36.3 1.1% 194 1.1% Skoda 99 141 -29.8 1.1% 229 1.2% Tesla Model 3 86 26 230.8 1.0% 115 0.6% Haval 97 49 98.0 1.1% 200 1.1% Kia Rio 86 109 -21.1 1.0% 225 1.2% Mini 95 62 53.2 1.1% 143 0.8% Mazda CX-9 84 74 13.5 1.0% 200 1.1% Tesla 86 35 145.7 1.0% 121 0.7% Haval H2 84 26 223.1 1.0% 168 0.9% Lexus 85 81 4.9 1.0% 217 1.2% Suzuki Vitara 83 110 -24.5 1.0% 225 1.2% Porsche 82 44 86.4 0.9% 138 0.7% Mazda CX-3 81 84 -3.6 0.9% 171 0.9% Volvo 63 47 34.0 0.7% 173 0.9% Peugeot 3008 79 63 25.4 0.9% 82 0.4% Holden 30 276 -89.1 0.3% 78 0.4% Toyota Yaris Cross 79 0 7,900.0 0.9% 199 1.1% Citroen 26 23 13.0 0.3% 58 0.3% Kia Sorento 77 36 113.9 0.9% 243 1.3% Isuzu 21 25 -16.0 0.2% 57 0.3% Subaru Forester 73 82 -11.0 0.8% 147 0.8% LDV 20 2 900.0 0.2% 42 0.2% Mazda CX-30 71 0 7,100.0 0.8% 158 0.9% Renault 18 24 -25.0 0.2% 42 0.2% MG ZS 70 44 59.1 0.8% 141 0.8% Mahindra 13 10 30.0 0.1% 38 0.2% Jeep Grand Cherokee 66 38 73.7 0.8% 90 0.5% Jaguar 9 30 -70.0 0.1% 78 0.4% Toyota Highlander 65 65 0.0 0.7% 128 0.7% Seat 9 14 -35.7 0.1% 30 0.2% Mazda Mazda3 59 79 -25.3 0.7% 150 0.8% Bentley 8 6 33.3 0.1% 20 0.1% Hyundai i30 58 26 123.1 0.7% 90 0.5% Can-Am 7 4 75.0 0.1% 14 0.1% Hyundai Venue 57 17 235.3 0.7% 126 0.7% Yamaha 7 5 40.0 0.1% 13 0.1% Suzuki Jimny 54 31 74.2 0.6% 182 1.0% Alfa Romeo 4 17 -76.5 0.0% 15 0.1% Ford Everest 52 35 48.6 0.6% 119 0.6% Aston Martin 4 5 -20.0 0.0% 18 0.1% Toyota Landcruiser 51 40 27.5 0.6% 116 0.6% Cupra 4 0 400.0 0.0% 8 0.0% Suzuki Baleno 49 40 22.5 0.6% 143 0.8% Fiat 4 0 400.0 0.0% 19 0.1% Suzuki Ignis 49 48 2.1 0.6% 113 0.6% Ferrari 3 3 0.0 0.0% 8 0.0% Volkswagen Touareg 49 20 145.0 0.6% 108 0.6% McLaren 3 4 -25.0 0.0% 11 0.1% Mini Hatch 46 20 130.0 0.5% 53 0.3% Genesis 2 0 200.0 0.0% 4 0.0% MG ZST 46 0 4,600.0 0.5% 112 0.6% Maserati 2 5 -60.0 0.0% 4 0.0% Honda Jazz 45 110 -59.1 0.5% 117 0.6% Others 2 10 -80.0 0.0% 7 0.0% Others 2,582 3,213 -19.6 29.6% 6,104 33.1% Total 8,710 7,911 10.1 100.0% 18,422 100.0% Total 8,710 7,911 10.1 100.0% 18,422 100.0%

34 www.autofile.co.nz new cars Emissions targets ‘tough ask’ new-vehicle importer a “better, cleaner future” and such as hybrid, pure electric and representing five marques are making good progress in Car sales hydrogen fuel cells, to help reduce wants the government to electrifying their line-ups. jump by 10% emissions. Aintroduce a feebate scheme to help “Globally, our brands Toyota NZ plans to launch There were 8,710 new passenger vehicles lower the cost of electric vehicles have been working towards sold in New Zealand during February. more hybrid and plug-in hybrid (EVs) at the point of purchase. producing fleets of electric That represented an increase of 10.1 per cent models on the market this year The call has been made by and hybrid vehicles. While when compared to the same month of last and will also have its first local European Motor Distributors (EMD), we are excited to adopt year when there were 7,911 registrations. offering of a pure electric car – The Mitsubishi Outlander was the best- which is the official distributor for these locally, our market selling model of last month with the Lexus UX 300e. Volkswagen, Audi, Porsche, Skoda faces supply challenges. 595 sales. Second and third spots were Finally, Drive Electric is and Seat in New Zealand. “We expect to see these secured by Kia with the Sportage “confident New Zealand can It follows the Beehive unveiling passenger vehicles available in on 370 and Seltos on 364. show leadership and have a co- proposals for a clean-car import New Zealand in the next two to ordinated transition away from standard, also known as a fuel- three years. fossil-fuel vehicles”. economy standard, towards the “But commercials are more are prepared to work with the Chairman Mark Gilbert says: end of January. problematic. Due to the lack of government to achieve a transition “The standards being proposed In addition, the Climate Change technology, we won’t see changes to a low-carbon fleet. for 2025 have already been met Commission has issued draft advice here for at least another four to “To transition to a resilient, zero- in comparable markets, such as to the government in which it six years.” carbon economy, we need a range the EU and Japan, and must be recommends a ban of the sale of Meanwhile, Toyota NZ has of initiatives from manufacturers achievable here. new petrol and diesel cars by 2035. pledged to reduce CO2 emissions and government. “The standard is a useful tool However, EMD believes a from its vehicles, but admits the “Toyota is playing its role to in that it asks importers to look at feebate scheme on the demand targets set by the government are deliver increasingly lower-emitting the portfolio of vehicles they are side would boost the uptake of EVs a “tough ask”. vehicles. The introduction of a importing, which should increase and plug-in hybrids (PHEVs). Neeraj Lala, chief executive, new clean-car import standard is low-emissions choice across a range Such a system would provide welcomes the decision to introduce an encouraging move from the of types and price-points. More EVs discounts for low-emissions vehicles clean-car import standard legislation government.” coming in also increases supply in and penalise high-emitters when they in 2021 with its implementation Toyota has been working with the second-hand market over time. are first registered in this country. starting the following year. the Motor Industry Association (MIA) “That said, such a standard is EMD, part of the Giltrap Group, He adds Toyota NZ is committed on a lower-emitting vehicle standard. just a first step towards managing believes the goal of the clean-car to reducing its carbon footprint The marque supports the a transition away from fossil-fuel import standard to slash carbon across all product lines, as well as stance of the MIA, which says the vehicles. dioxide (CO2) emissions from 171g/ manufacturing, distribution and government’s 2025 deadline is “To meet New Zealand’s km for the average import to 105g/ tailpipe emissions. too aggressive and unachievable legislated climate ambitions to km by 2025 is “steep” and will require It has set a target to cut vehicle because decisions on new imports keep warming within 1.5 degrees extra government assistance. emissions to 152g/km and 178g/km here are largely made by offshore celsius, we need to aim for at least Penalty rates for importers for Toyota and Lexus respectively management. 250,000 EVs by 2025 and for this missing their targets look set to be by 2030. Lala adds the new-vehicle trend to continue through to 2030.” charged from 2023 at $50/g of CO2 “To reduce further to 105g/km industry is developing low or zero- Gilbert notes more will need to above the limit for new vehicles and is certainly a tough ask. But we emitting automotive technologies, be done about emissions from the $25/g for used imports. The levies transportation sector, which are are expected to increase to $75 and expected to continue rising. $37.50 respectively in 2025. New Passenger Registrations - 2018-2021 “We need a joint plan between “Overall, it is clear this is a 12,000 the government and industry necessary step forward for New 11,000 to ensure we have the right Zealand,” says a spokesman for 10,000 package of policy settings, the EMD. “However, the timeline to 9,000 necessary investment in charging reduce emissions is steep and will 8,000 infrastructure, and co-ordination take a great deal of support from among all players through the 7,000 the government to achieve this. EV ecosystem – from grids and 6,000 “From an importer standpoint, electricity retailers to car importers, 5,000 we need to see strong incentives 2018 councils and property developers. 4,000 in the form of feebates to help 2019 “Policies that need to be 3,000 create demand for these vehicles. 2020 considered include incentives, 2,000 We would also like to see used cars 2021 adjustments to fringe-benefit taxes 1,000 treated the same as new.” and depreciation, and investment 0 EMD says manufacturers it Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec to ensure we are ready for more represents are committed to public and at-home charging.”

www.autofile.co.nz 35 new commercials Delivering on ‘demand surge’ itsubishi Motors NZ says has been able to quickly get back outperform the market in 2020 step with changing lifestyles, we it has bounced back on-track, while we as a company and start this year so strongly is have consolidated on our market stronger than ever from were well-positioned to deliver on testament to the strength and value position and will continue to work Mlast year’s industry-wide slowdown. the subsequent surge in consumer of our range, and high standards hard to improve on that.” The marque’s registrations confidence. across our dealer network. Despite import issues reached a 30-year peak of 1,436 “The fact that we were able to “With a mix of vehicles in constraining Triton sales, in January, of which 1,002 were Mitsubishi finished 2020 in third cars with the rest being Triton and New Commercial Sales - 2018-2021 place for ute registrations for Express sales. 6,000 the model to stay as the brand’s A surge in business at the end 5,500 biggest seller on 3,694 units. 5,000 of 2020 placed the company third As for February, there were 4,500 for the calendar year with a market 4,000 3,774 new commercials sold in share of nine per cent on the back 3,500 New Zealand. This was up by seven of a 22.8 per cent downturn in sales 3,000 per cent when compared to 3,527 2,500 of light vehicles. 2018 registrations in the same month of 2,000 “Last year was challenging for 2019 last year. The most popular model 1,500 most brands,” says Reece Congdon, 2020 was the Toyota Hilux on 804 units 1,000 2021 head of marketing and corporate 500 for a market share of 21.3 per cent. affairs. “The great news is that – 0 Next up was Ford’s Ranger on for the most part – New Zealand Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 549 sales with the Triton on 474.

New Commercial Sales by Make - February 2021 New Commercial Sales by Model - February 2021

FEB '21 2021 YEAR 2021 FEB '21 2021 YEAR 2021 MKT MAKE FEB '21 FEB '20 +/- % MAKE MODEL FEB '21 FEB '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 992 799 24.2 26.3% 1,938 24.4% Toyota Hilux 804 580 38.6 21.3% 1,554 19.5% Ford 623 814 -23.5 16.5% 1,644 20.7% Ford Ranger 549 728 -24.6 14.5% 1,497 18.8% Mitsubishi 515 342 50.6 13.6% 949 11.9% Mitsubishi Triton 474 342 38.6 12.6% 888 11.2% Nissan 260 265 -1.9 6.9% 541 6.8% Nissan Navara 260 265 -1.9 6.9% 541 6.8% Mazda 245 214 14.5 6.5% 470 5.9% Mazda BT-50 245 214 14.5 6.5% 470 5.9% Isuzu 192 196 -2.0 5.1% 494 6.2% Toyota Hiace 162 195 -16.9 4.3% 335 4.2% LDV 161 72 123.6 4.3% 308 3.9% Isuzu D-Max 129 112 15.2 3.4% 373 4.7% Hyundai 129 53 143.4 3.4% 222 2.8% Hyundai iLoad 120 52 130.8 3.2% 205 2.6% Great Wall 103 40 157.5 2.7% 195 2.5% Great Wall GWM Cannon 82 0 8,200.0 2.2% 155 1.9% Fiat 72 42 71.4 1.9% 145 1.8% Ford Transit 74 86 -14.0 2.0% 147 1.8% Volkswagen 68 107 -36.4 1.8% 198 2.5% Fiat Ducato 72 42 71.4 1.9% 145 1.8% Fuso 67 61 9.8 1.8% 127 1.6% LDV T60 53 22 140.9 1.4% 110 1.4% Hino 50 38 31.6 1.3% 87 1.1% SsangYong Rhino 44 40 10.0 1.2% 93 1.2% SsangYong 44 41 7.3 1.2% 93 1.2% Mitsubishi Express 41 0 4,100.0 1.1% 61 0.8% Mercedes-Benz 41 61 -32.8 1.1% 97 1.2% LDV G10 41 26 57.7 1.1% 83 1.0% Renault 38 33 15.2 1.0% 63 0.8% LDV V80 41 23 78.3 1.1% 73 0.9% Volvo 23 14 64.3 0.6% 37 0.5% Volkswagen Amarok 40 69 -42.0 1.1% 103 1.3% Scania 22 27 -18.5 0.6% 34 0.4% Mercedes-Benz Sprinter 34 23 47.8 0.9% 82 1.0% Iveco 19 27 -29.6 0.5% 38 0.5% Isuzu N Series 28 37 -24.3 0.7% 59 0.7% Kenworth 15 15 0.0 0.4% 40 0.5% LDV Deliver 9 26 0 2,600.0 0.7% 42 0.5% Others 95 266 -64.3 2.5% 234 2.9% Others 455 671 -32.2 12.1% 938 11.8% Total 3,774 3,527 7.0 100.0% 7,954 100.0% Total 3,774 3,527 7.0 100.0% 7,954 100.0%

Know what’s going on in YOURYOUR industry Keep up to date with the latest automotive news Subscribe now at www.autofile.co.nz/subscribeINSIGHT 36 www.autofile.co.nz used commercials ‘Quality’ vehicles being retained West Coast dealership “I’m concentrating on selling “Although it wasn’t as good as overseas travel. Some have been is steering clear of new Suzukis and Isuzus, and will 2019 and the six weeks lost due spending what they would have wholesaling its used utes hopefully get good trades from to lockdown couldn’t be made up, done on holidays buying new cars Aand cars. those sales,” adds Brown. sales have been steady since then. and renovating their homes.” Ross Brown, who owns Greenfield Looking back at 2020, last year “It makes you wonder how much Craig Wall, of Wall Motors in Motors in Greymouth, is avoiding didn’t “wash up too bad” after all. money New Zealanders spend on Onehunga, Auckland, notes the the practice because it’s “just giving law change with electronic stability money” to other traders if he does. Used Commercial Sales - 2018-2021 control (ESC) has hit the market for “I would imagine other franchises used imported light commercials. 1,200 are no longer flicking off trades to “It has made old Hiaces hold auction and are holding onto their 1,000 their values and you have to look at good quality trade-ins as well.” 2015 models to find ESC installed. As for how business has been 800 We get the odd ute as a trade, but faring, Brown describes this as 600 they are like gold. It’s hard to get “unchartered waters at the moment”. them and we don’t chase utilities or 2018 The dealership received a 400 2019 vans. Everyone is after them.” shipment of Isuzu utes towards the 2020 There were 508 used-imported 200 end of 2020 and “moved a few” last 2021 commercials registered last month, year, while some customers delayed 0 which was down by 41.2 per cent purchases to register them in 2021. Jan Feb Mar Apr May Jun Jul Sep Oct Nov Dec on 864 in February 2020.

Used Commercial Sales by Make - February 2021 Used Commercial Sales by Model - February 2021

FEB '21 2021 YEAR 2021 FEB '21 2021 YEAR 2021 MKT MAKE FEB '21 FEB '20 +/- % MAKE MODEL FEB '21 FEB '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 182 430 -57.7 35.8% 359 37.3% Toyota Hiace 106 322 -67.1 20.9% 235 24.4% Nissan 86 211 -59.2 16.9% 155 16.1% Nissan NV350 44 57 -22.8 8.7% 64 6.7% Isuzu 43 41 4.9 8.5% 86 8.9% Isuzu Elf 30 24 25.0 5.9% 63 6.5% Hino 34 22 54.5 6.7% 60 6.2% Toyota Dyna 28 38 -26.3 5.5% 49 5.1% Mitsubishi 29 18 61.1 5.7% 60 6.2% Hino Dutro 23 14 64.3 4.5% 45 4.7% Ford 28 21 33.3 5.5% 50 5.2% Toyota Toyoace 23 18 27.8 4.5% 31 3.2% Mazda 17 26 -34.6 3.3% 34 3.5% Fuso Canter 22 15 46.7 4.3% 48 5.0% Holden 16 12 33.3 3.1% 29 3.0% Nissan Caravan 17 46 -63.0 3.3% 29 3.0% Fiat 13 12 8.3 2.6% 19 2.0% Fiat Ducato 13 12 8.3 2.6% 19 2.0% Chevrolet 10 13 -23.1 2.0% 17 1.8% Mazda Titan 10 5 100.0 2.0% 14 1.5% Daihatsu 8 3 166.7 1.6% 12 1.2% Toyota Hilux 9 11 -18.2 1.8% 14 1.5% Volkswagen 8 9 -11.1 1.6% 13 1.4% Ford Ranger 9 7 28.6 1.8% 20 2.1% DAF 3 1 200.0 0.6% 4 0.4% Chevrolet Colorado 8 8 0.0 1.6% 15 1.6% Dodge 3 4 -25.0 0.6% 9 0.9% Daihatsu Hijet 8 2 300.0 1.6% 12 1.2% Mercedes-Benz 3 4 -25.0 0.6% 7 0.7% Hino Ranger 8 4 100.0 1.6% 10 1.0% Mitsubishi Fuso 3 2 50.0 0.6% 6 0.6% Nissan Atlas 7 12 -41.7 1.4% 19 2.0% Scania 3 1 200.0 0.6% 4 0.4% Holden Commodore 7 2 250.0 1.4% 12 1.2% UD Trucks 3 1 200.0 0.6% 4 0.4% Isuzu Forward 7 9 -22.2 1.4% 11 1.1% GMC 2 0 200.0 0.4% 2 0.2% Nissan E-NV200 6 7 -14.3 1.2% 13 1.4% Kenworth 2 1 100.0 0.4% 3 0.3% Toyota Regius 6 29 -79.3 1.2% 13 1.4% Others 12 32 -62.5 2.4% 29 3.0% Others 117 222 -47.3 23.0% 226 23.5% Total 508 864 -41.2 100.0% 962 100.0% Total 508 864 -41.2 100.0% 962 100.0%

Know what’s going on in YOURYOUR industry Keep up to date with the latest automotive news Subscribe now at www.autofile.co.nz/subscribeINSIGHT www.autofile.co.nz 37 Chips are down with supply arques are facing a is paring back output of several “After the industry shutdown severe shortage of models including the Fit. in the early phase of the Covid-19 New imports surge semi-conductors with Renault, Daimler and General crisis and the resulting abrupt drop Imports of new cars in February Mmanufacturers of computer chips Motors are among other marques in demand, car manufacturers came in at 10,549. This was 74.1 per cent more than in the same month having reserved output for tech grappling with a looming shortage. increased production volumes of 2020 and 40.4 per cent higher companies amid soaring demand VW and Continental expect the much faster than expected,” says a than on January’s 7,511 units. for smartphones, tablets and bottlenecks to continue well into spokesman for Continental. Registrations of new passenger gaming devices. this year, with the former’s Golf “With lead times of six to nine vehicles totalled 8,710 last month Volkswagen has reported particularly affected, while BMW has months, the semi-conductor for an increase of 10.1 per cent bottlenecks meaning 100,000 been “monitoring the issue closely”. industry has been unable to scale up from February 2020’s figures. fewer vehicles may come out of Bosch, the world’s largest fast enough to meet this growth.” However, it represented a fall of 10.3 per cent from 9,712 units in its European, North American and car-parts supplier, is receiving The industry’s largest chip January. Chinese factories in 2021’s first “significantly fewer” chips for suppliers include Infineon, NXP, Texas The numbers have resulted in quarter. components it makes. Continental Instruments, Renesas and Nvidia. the stock of new cars still to be That’s because Continental adds there is “extreme volatility” Germany-based Infineon registered increasing by 1,839 to and Bosch, its parts makers, have in automotive supply chains and is adjusting manufacturing 78,455. Daily sales, as averaged struggled to secure supplies from France’s Valeo also reports shortages. capabilities to meet stronger over the previous 12 months, their contractors. The rapid growth in demand demand, but says its “long-term stand at 225 units per day. February’s results mean stock And Nissan and Honda, Japan’s for electric vehicles has increased growth expectations in automotive at-hand has climbed to 348 days, second and third-largest carmakers, demand for semi-conductors, haven’t changed significantly” – or 11.4 months, if sales continue were forced to cut production at which power everything from despite the industry’s faster-than- at the current rate. In the same the start of this year. battery management to driver- expected recovery. month of 2020, the figures The reductions have affected assistance systems and in-car And NXP has seen a surge in were 273 days, or nine months, the Nissan Note, while Honda entertainment. orders from its car-sector clients. respectively.

Dealer stock of new cars in New Zealand DAYS STOCK IN NZ - NEW CARS

CAR SALES DAILY SALES DAYS VARIANCE STOCK - 12-MONTH STOCK 340 IMPORTED REGISTERED AVERAGE AT HAND Feb 2020 — Feb 2021 Feb ‘20 6,058 7,911 -1,853 77,563 284 273 320 Mar ‘20 8,531 5,415 3,116 80,679 276 292 Apr ‘20 5,537 707 4,830 85,509 259 330 300 May ‘20 2,765 5,400 -2,635 82,874 253 327 Jun ‘20 4,322 7,413 -3,091 79,783 250 320 280 Feb 2019 — Feb 2020 Jun ‘20 4,321 8,200 -3,879 75,904 250 303 260 Aug ‘20 5,371 7,072 -1,701 74,203 246 301 Sep ‘20 8,313 7,735 578 74,781 239 312 240 Oct ‘20 8,998 8,296 702 75,483 233 324 Nov ‘20 7,483 8,029 -546 74,937 229 328

Days of stock Days 220 Dec ‘20 9,452 5,572 3,880 78,817 222 356

Jan ‘21 7,511 9,712 -2,201 76,616 223 343 200 Feb ‘21 10,549 8,710 1,839 78,455 225 348

Year to date 18,060 18,422 (362) 180 Change on last month 40.4% -10.3% 2.4% 0 Change on Feb 2020 74.1% 10.1% 1.2% OCT SEP JUL FEB JAN NOV APR DEC AUG JUN FEB MAY MORE IMPORTED MORE SOLD MORE STOCK MAR

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38 www.autofile.co.nz ‘Scratching around’ to find stock he after-effects of last ordering new vehicles for delivery “We also suspected that coming year’s shutdown to prevent as much as seven or eight months out of [last year’s] lockdown that Daily sales slide the spread of Covid-19 in ahead, “which is quite different” people were nervous about public There were 9,380 used cars imported NewT Zealand are still being felt in than before the pandemic hit. transport, so they were looking for an in February, this is an increase of the automotive industry. “Traditionally, if buyers wanted extra vehicle for the household to not 2,409 units, or by 20.4 per cent, on the same month of 2020, and down And a current issue across the a certain colour or specifications, rely on public transport and taxis.” 18.6 per cent on the 11,523 imported used and new-vehicle sectors is that they might have had to wait for Craig Wall, of Wall Motors in the previous month. supply of stock is thin on the ground. three months. Now it’s common Onehunga, south Auckland, says: A total of 9,096 units were “When the first lockdown to be waiting five to six months on “During the first lockdown, we sold during February. This was happened, we were nervous about certain brands. were worried about holding too down 15.4 per cent from 10,747 what might happen afterwards and “That has a flow-on effect much and what would happen registrations during the same were concerned about stockpiles, because customers are still using after we came out of it. month of 2020 and represented a drop of 3.3 per cent from the 9,404 but everything panned out to be their lease vehicles and those aren’t “But everything came right in units sold in January this year. the opposite,” says David Breen, coming back for sale.” the first week after lockdown as With 284 more used cars of Orix NZ, a leasing and fleet Breen has been surprised by people started to buy cars again. imported than registered last management company that also consumers spending habits post- “It is now hard to get stock and month, it brought stock sitting on runs three retail car-sales yards. lockdown. “We scratched our heads getting enough will be the biggest dealers’ yards, or in compliance “Coming out of the main for a while wondering why it was issue this year. If we can get stock, shops, to 28,222 units. This was lockdown early last May, there was happening, but there are probably we will have a reasonable year. 5.1 per cent, or 1,526 cars, lower than at the end of February 2020. a lot of stock around. However, that a few reasons behind it. “We were overstocked before With current average daily has gradually depleted and we’re “Low interest rates and rising the first [national] lockdown and sales falling to 299 – their lowest now scratching around trying to house prices generally provide a have been understocked since level of the past year – there are find enough vehicles to fill up yards.” buoyant demand for vehicles, both June last year – about 30 to 40 per 94 days’ stock remaining if sales Breen notes people have been new and used. cent down on usual levels.” continue at this rate.

DAYS STOCK IN NZ - USED CARS Dealer stock of used cars in New Zealand

CAR SALES DAILY SALES DAYS 180 VARIANCE STOCK - 12-MONTH STOCK IMPORTED REGISTERED AVERAGE AT HAND

160 Feb ‘20 11,789 10,747 1,042 29,748 384 77 Mar ‘20 13,145 8,565 4,580 34,328 375 91 140 Apr ‘20 6,136 622 5,514 39,842 347 115 May ‘20 4,048 9,565 -5,517 34,325 340 101 120 Jun ‘20 5,021 11,962 -6,941 27,384 342 80 Jun ‘20 9,212 11,975 -2,763 24,621 340 72 100 Aug ‘20 10,098 9,054 1,044 25,665 331 78 Feb 2019 — Feb 2020 Sep ‘20 8,358 10,339 -1,981 23,684 327 72 80 Oct ‘20 9,064 9,763 -699 22,985 322 71 Nov ‘20 9,553 9,523 30 23,015 316 73 60 Feb 2020 — Feb 2021 Days of stock Days Dec ‘20 12,138 9,334 2,804 25,819 310 83

40 Jan ‘21 11,523 9,404 2,119 27,938 304 92 Feb ‘21 9,380 9,096 284 28,222 299 94

20 Year to date 20,903 18,500 2,403 Change on last month -18.6% -3.3% 1.0%

Change on Feb 2020 -20.4% -15.4% -5.1% OCT SEP JUL FEB JAN NOV APR DEC AUG JUN FEB MAY MAR LESS IMPORTED LESS SOLD LESS STOCK

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