Page 8 LEADERSHIP CHANGE at TOYOTA Page 3 MACDONALD CALLS TIME on VIA

THE NEW ZEALAND VEHICLE DEALER’S NEWS SOURCE

JULY 2020 .CO.NZ

Page 8 LEADERSHIP CHANGE AT TOYOTA Page 3 MACDONALD CALLS TIME ON VIA

Page 13 SIMON RUTHERFORD TALKS COVID, DEALERS AND PLUG-IN VANS

The market leader for over a decade. Shift to the Autohub Team and experience the Autohub difference.

GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE | www.autohub.co

MechanicalMechanical Breakdown InsuranceInsurance Payment Protection Insurance Guaranteed Asset Protection Insurance Loan Equity Insurance Payment Protection Insurance Motor Vehicle Insurance Car Insurance

www.autosure.co.nz | 0800 267 873 EDITORTALK

DON’T THROW OUT THE BABY

It became very clear about a year ago that VIA needed to change. The organisation, that has done so much for the used import trade over the last 30 years, was showing serious signs of financial stress - as much down to the changing shape of the trade as its own efforts. RICHARD EDWARDS MANAGING EDITOR

The market itself, in many ways, has been personal bias when I say he is a massive Now we have a home on your phone, doing VIA out of a job. Fully-inclusive loss to the trade - you can read more computer and car stereo with our new supply chain operators and exporters that about his decision to leave VIA opposite weekly production: AutoTalk - the NZ allow traders to acquire stock at the click of on the page. His South Island counterpart Auto Industry Podcast. a mouse, have slowly disconnected many Lloyd Wilson says the same thing. Available free on Apple Podcasts, Spotify, at the retail end of the trade from the While I have not had this confirmed, my Google Podcasts (coming soon), Stitcher, technical and political end. expectation is Macdonald will not be the TuneIn or wherever you download your Cars turn up, they sell them. It is a only member of the current leadership podcasts, the AutoTalk show will cover brilliant solution in that it allows people of the association to use this time to news and feature discussions with to do that they do best - shippers ship, step aside. With them will go years traders, suppliers and industry leaders. compliance firms comply, and traders of experience and relationships with Our first episode, available today, is a sell. those in power that don’t come with discussion with Toyota New Zealand’s But for VIA it means in increasing majority the shadow of commercial expectations Neeraj Lala on the eve of his accession simply do not care about what goes on in behind them. to chief executive officer. In episode two the ‘beltway’ - aside from what they read The hope, of course, is that new talent we chat with Ford New Zealand managing in AutoTalk. When margins are tight, an comes through. Early comments from director Simon Rutherford. association membership may not be the chief executive David Vinsen indicate that Podcasts will be partnered with stories most appealing way to spend a dollar. is happening, with new signups on the on AutoTalk.co.nz and in the AutoTalk The supply chain recognised this to an rise. magazine. extent, and for over a decade have been There is a lot positive about VIA’s new increasingly funding the association in Please check out, subscribe and share the structure, but there is a lot of positive their valuable work. Yet it has largely still AutoTalk podcast today! attached to the old one as well. been fronted, and controlled, by those traders who do care. And they have been WE ARE NOW IN YOUR HEADPHONES Richard Edwards doing a good job. MANAGING EDITOR Over lockdown the team here were hard The shift to a council system based on at work on coming up with new ways to funding levels - quite rightly - redresses bring news and information to you - and the balance. I also think; it will create we have added video interviews and live a VIA slightly more representative of webinars to the mix. industry need and responsive to bigger issues. Additional input from across the spectrum of the supply chain can only be a good thing. There is however, a but at this point of the story. It is important that in the radical restructuring the association is undergoing, that they do not throw out what has been so good about over the years. I am not saying that is going to happen - but I am seeing signs. As a caveat, I have long been a friend of Graeme Macdonald, so I don’t want to sound like I am simply conveying

2 New Zealand JULY 2020 MACDONALD STEPS DOWN FROM VIA LEADERSHIP

Long-term VIA North Island chair Graeme Macdonald has confirmed he will not be seeking a spot on the new VIA council or board at the annual general meeting later this month.

Macdonald joined the national executive to-mid 2000s, having previously been an of the association in 2006, and has held auctioneer for Turners. the role of chair since 2008. “I am currently really enjoying getting In a statement announcing his decision, back out there on the ground and selling Macdonald reflects on the challenges cars,” Macdonald says. of his time representing the trade, and “It is time to find new challenges, wishes the incoming leadership the best. directions and perhaps a little more of “During this time, I have taken my role a relaxed attitude towards the things I as an advocate for open access to New cannot change. I remain passionate about Zealand for used imported vehicles very the advocacy and rights of the dealers seriously,” Macdonald says. and wider industry to continue access to “I’m particularly proud of the New Zealand of affordable, quality motor representation on behalf of the Industry vehicles for the everyday Kiwi.” by the then-IMVDA, IMVIA and now VIA, to South Island chair Lloyd Wilson, who has combat a relentless series of government yet to confirm if he will seek re-election, and industry policies, directives, so-called says Macdonald’s resignation is a “massive initiatives and at times roadblocks, that loss” would have severely undermined the “Graeme has played a massive role in ability of our businesses to thrive or even the association,” Wilson says. “He has survive.” the ability to see both sides of an issue, “I remain committed to the ideals that which has been extremely valuable.” brought me to the table in 2006, still as “Working with Graeme has taught me an active on-the-ground trader.” to try and look at both sides objectively VIA is being restructured, with regional before coming to a conclusion,” he says. boards replaced by a new industry- “The phrase let’s play devil’s advocate representative council, selected partially comes readily to mind.” on the basis of sponsorship levels, which Chief executive David Vinsen also noted will then select a board to oversee the experience and role Macdonald has operations. played within the association. “I wish the incoming council and board “He has taken his duties - particularly members the very best in this new and fiduciary duties - very seriously,” Vinsen Association Inc (VIA) will hold its 2020 challenging environment our industry says. annual general meeting in the Century now faces, and I’m sure each and every “With his background as an auctioneer, Lounge at Eden Park, Auckland, on one will bring nothing but the best he has been a fantastic face for the Tuesday, July 21. of intentions for a strong and flexible organisation - hosting events, welcoming The AGM, the association’s 23rd, starts at association to combat these challenges,” important guests and facilitating 2.30pm and the venue can be reached Macdonald says. discussions.” via Eden Park’s Gate G, South Stand, Speaking to AutoTalk, Macdonald says he Vinsen says while it is a loss to have Reimers Ave, Kingsland. has not yet confirmed future plans, other Macdonald stand down, he does not Members can also participate by video link than that for now he will continue on the believe his experience is entirely lost to for the first time. board of the Australian Imported Motor the trade. Vehicle Industry Association. “I think he will still be around in one way He trades online, while working part time or another.” for West Auckland-dealership Croydon Wholesalers. Macdonald made his name Annual general meeting details: in the industry with Croydons in the early- The Imported Motor Vehicle Industry

JULY 2020 New Zealand 3 - MACDONALD, WITH FOUNDING MEMBER ROD MILNER AND SOUTH ISLAND CHAIR LLOYD WILSON AT THE ASSOCIATIONS 25TH ANNIVERSARY CELEBRATIONS. VIA INVESTIGATING NZTA REQUEST FOR EXPORTER DATA DAVID VINSEN The NZ Transport Agency has told light vehicle inspection companies require additional attention during that it will be expecting them to collect more information about the compliance process. vehicles they are processing once new appointments are in effect for “At the same time the NZTA and January 1 next year. Ministry of Transport are very According to a bulletin issued to applicants yesterday triggered by interested in trying to get an idea questions to the agency, the NZTA is expecting inspectors to provide of current market demand, forward information about each certification decision, and inspection error market demand, and any pinch rates and the type of error. points.” But of more concern according to some in the supply chain, is that the AutoTalk requested comment from inspector will be required to note the specific person or organisation a number of supply chain players exporting the vehicle. The NZTA has clarified that this is unlikely to around the changes, with few willing GREG RANSON be the company transporting the vehicle - something noted now on to comment. many vehicles transported by logistics package operators. JEVIC and its subsidiary VINZ, both The information supplied by the agency explains this as: commented they are working through the tender process and “The exporter / export agent is the primary foreign person / company noted the change in reporting requirements. that a New Zealand person / company contracted with to export the “We are still assessing operational changes required to allow for these vehicle to New Zealand for sale / use on New Zealand roads. It does proposed changes” not matter whether the exporter ever owned / had title to the vehicle. The exporter is not generally the entity that transports the vehicle to New Zealand. Border inspectors and entry certifiers will need to accurately obtain this information from their customer or third party.” The inspecting company will also need to note the importer of the vehicle - the dealership selling it or the person acquiring it for personal use. This is regardless of if they have ownership of the vehicle. The cost of the inspection and entry service, and who paid for it will also need to be recorded. Drivesure chief executive Greg Ranson contacted VIA chief executive David Vinsen, raising issues with the changes. Specialists in “Effectively the agency is requiring entry certifiers to identify the exporter (in country of origin, not the shipper or agent) and the pre‑shipment inspections importer (licensed trader or private individual) for every vehicle,” in Japan & UK Ranson says. “Whilst I can understand the Agency’s desire to trace a vehicle’s  Full border inspections pathway, having this information available at the certification level may be difficult to gather with any confidence, may be privileged or  Authorised MPI inspections be subject to privacy concerns. Additionally having vehicle inspectors aware of who the vehicle is from, and going to, has the ability to  Authorised NZTA inspections introduce an element of bias in some decisions.” “In any event it will be in the wider industry interest to be aware of  Odometer verification these requirements well in advance.” Vinsen says they are aware of the new information request, and  Pre-export appraisal technical manager Malcolm Yorston is investigating.  “We knew the NZTA were going to be seeking more information as Vehicle history reports to the provenance of vehicles when they are being imported and certified - it is parallel to what customers do.” “It is not unexpected,” he notes. “It is some revamping of the rules around importation.” “We are going to be doing some research into exactly what they want, how it lines up with customers needs and any privacy concerns.” Vinsen expects the information could be used for streamlining the JEVIC NZ system and ‘profiling’, potentially identifying vehicle sources that 09 966 1779 www.jevic.co.nz

4 New Zealand JULY 2020 Importing cars. Made easy.

www.autosure.co.nz nichibojapan.com

ADTORQUE EDGE

DELIVERING YOUR MARKETING SOLUTIONS

Automotive software solutions Driving your business

JULY 2020 New Zealand 5 AutoTalk Magazine and autotalk.co.nz are published by Auto Media Group 8/152 Quay Street, Limited. P.O. Box 10 50 10, Auckland City, NZ 1030. Ph. 09 309 2444

MANAGING EDITOR Richard Edwards 021 556 655 HAWKES BAY TAKES [email protected] TOP HONDA DEALER ASSISTANT EDITOR Geoff Dobson 021 881 823 [email protected] A Napier-based franchise has beaten the country’s big-city dealerships – including Honda’s own – to win the brand’s JOURNALIST Dealer of the Year trophy. Michael Stock 021 240 2402 [email protected] Achieving this feat made the days leading Honda franchise five years ago. BUSINESS MANAGER up to the Level 4 lockdown a busy time Peter Ashley, Honda New Zealand’s general Dale Stevenson for director Mark Notman and his team as manager sales, says Mark’s background in 021 446 214 they rushed to get new cars to their owners [email protected] the service side of the industry had helped and secure the numbers they needed. him be so successful as a dealer. GROUP GENERAL MANAGER Notman says the win could be put down “Mark is a real people person. We’re Deborah Baxter to how important it was for his team absolutely proud of Mark and have been 027 530 5016 to create a welcoming place for people from day one,” he says. [email protected] when they’re thinking about buying a Notman says it was important to him that new car relationships were maintained through PUBLISHER / CHAIR “It starts with being made a coffee when aftersales servicing and that saw a lot Vern Whitehead you walk through the door and when you 021 831 153 of repeat customers come through the [email protected] buy a car from us you leave as part of the doors. The dealership also has the national family,” Notman says. contract to provide companion driving “We always say ‘if you’re driving past, pop service Driving Miss Daisy with its vehicles. in for a coffee’ and a lot of people do and As well as that trophy, Notman’s prize Auto Media Group Limited makes every endeavour to ensure information contained are our friends now. They’ll just pop in was to be a trip to this year’s Indy 500. in this publication when they have a moment.” However, Covid-19 has put that on ice is accurate, however we are not liable for any losses or issues resulting from its use. Notman, a former Oamaru boy, trained and has Honda working on a new plan to reward its number one dealer. Annual subscription: $114 + gst ($131.10) as a mechanic before spending the bulk of his career selling cars in London and Printed by: Alpine Printers. Christchurch. He and his young family moved north to take over the Hawke’s Bay

INDUSTRYSUPPORTERS autotalk.co.nz autotalk.com.au transporttalk.co.nz futuretrucking.com.au evs&beyond.co.nz evtalk.com.au

SUBSCRIBE TO THE AUTOTALK NZ PODCAST TO HEAR THE FULL AD CAMPAIGN TRIGGER FOR INTERVIEW NEW TOYOTA CEO’S CAREER

Many graduates leave university not entirely clear on where they want to go. For Toyota New Zealand’s new chief executive Neeraj Lala, there was only one place he wanted to work

“I started with Toyota in the summer of Lala is pleased Davis is not leaving “I got the opportunity to spend three 1998. Toyota was the only company I the brand entirely - he will remain as years in the US where I got to experience wanted to work for when I left university chairman of the board for a further a business on a completely different scale. - we had an international marketing class two years. I met some incredible people and got where I was introduced to ‘Welcome to “So the beauty with this transition is that exposed to quite a significant transition our world’ (a TNZ advertising campaign it’s been a long time in the planning, and that I would never have imagined. of the time), and I was captivated by the Alistair will continue his role, or actually Part of his time was spent working on the strength and the work that had gone into will start as role as the non-executive chair closing of the youth-focused Scion brand, that campaign. I was kind of inspired by of our board. So he’ll still be accessible,” which Davis had been part of establishing a Japanese car brand in how their brand Lala says. “I’m sure he will offer his advice during his time in the States. resonated amongst the hearts of Kiwis.” on areas that he thinks we could be “It was an incredibly sad time, incredibly Twenty-two years later, and the looking at. emotional time in terms of the people transition has arrived to Lala running the “Alistair’s been fantastic mentor for me and the culture.” company - officially taking the reins on personally, and many of our management Many industry pundits predicted Lala was July 1. When AutoTalk interviewed Lala he and executive team. So to have them on the path to higher management when had just taken part in a farewell for well- available on the chair is fantastic. He’ll be he left for the US, and expectations grew respected outgoing CEO Alistair Davis. available to us a couple of days a week,” further when he returned two years ago, “It’s been a fairly emotionally charged day Lala says. taking leadership of new vehicles and today, for not just me, but for our whole “And I’m sure his wife at home will enjoy product planning before being named chief company. We farewelled Alistair at a special him spending a couple of days a week out operating officer. staff meeting today - and there were a few of the house.” tears shed. There were certainly a lot of He admits overseas experience is part of the Lala has experienced most parts of the TNZ memories shared as well, a lot of good times. preparation process. structure in his path to the top. He started “We discussed some of the adversity or “Large market experience is certainly useful in marketing, moving through IT, sales, in terms of just broadening your scope, I some of the challenges that we’ve had product, pricing, used cars, before returning in Alistair’s 40-year reign. But mostly guess, or your frame of reference. In the to marketing. He then followed in Davis’ US, in my first month there, we missed our it was around celebrating his career in footsteps by undertaking a placement in terms of changes that he’s made and the sales target by more cars than we sell in Toyota North Americas office, assisting in New Zealand in a year. So it just puts it into contribution that he’s made to both Toyota their relocation from California to Texas. New Zealand and also Toyota globally.” context just the scale of the operation. CONTINUED ON FOLLOWING PAGE...

8 New Zealand JULY 2020 New finance FAST. FLEXIBLE. INDEPENDENT. EXPERT.

for used cars Call the team today 0800 286 020

Avanti Finance has you covered.

CONTINUED FROM PREVIOUS PAGE... “So I certainly won’t say that’s a achievement by us as and our franchisees.” to customers that have placed orders prior prerequisite, but it certainly provides you Is it working? Lala says service levels are to lockdown. We’ve had a good rush of with a really solid foundation moving improving as part of the broader ideals of business, similar to many of the retailers forward.” “Drive Happy” and sales are going well. that we’ve heard even in the news over The return to Palmerston North - not to the past two weeks. We are forecasting imply anything negative about the brand’s ARE DEALERS HAPPY? though a softening of the market, but regional-city home - was a challenge for “If you ask any of our CEOs at the Toyota again, that’s all speculative.” the women in his life. stores about profitability, all of them would He says that during lockdown, Toyota “I mentioned to somebody this morning say, ‘Yes, we’d like to be making more,’ headquarters in Japan have been very that I feel very privileged, and it’s quite And I would be lying if I didn’t say that it’d supportive. humbling to be given the opportunity be great for us to be able to make more “We’ve been working very closely to lead this company - but there’s been profit as well,” he says. with Toyota Japan, they have been significant sacrifice by my wife and I’ll say “But in terms of just where the project is unbelievable supportive,” Lala says. my two girls, because taking two young at, it’s going exceptionally well.” “It pays to have a rich parent through a girls to the state’s was really tough. “Prior to lock down, we had over 3000 crisis like this. I can’t speak highly enough “Both of my daughters weren’t overly paid customer orders in our pipeline, and of Toyota Japan, it’s been a very well enthusiastic about leaving their friends last month we had more RAV4 sales than managed transition through this little crisis in Palmerston North, but of course it was any other car in the market, and we had period for us.” even harder for both my wife and my two more orders than cars that we had sold. Lala hinted support had, in turn, been daughters to return back from Los Angeles “I think that from my time in the US, provided to the dealer network. and settle back in Palmerston North. It pricing transparency is the first step of certainly hasn’t been easy for them, but “Without getting into some of the details, delivering customers greater satisfaction. I’m very lucky I’ve got a very supporting it was really important to me that we It’s more transparent; it’s more honest, family.” stayed engaged with our Toyota stores and it’s more fun. You don’t need to visit throughout the country. For his eight-year old son, a rising karting four or five dealers to get the best price “We ran weekly staff meetings on Zoom or star, the transition has been easier. or feel as though you have succeeded or Microsoft teams every week for our staff, failed in a pricing negotiation.” “He’s like a duck to water.” but we also ran weekly meetings with our DRIVE HAPPY But the project, he explains, is not over. Toyota CEOs and branch managers right “So, purchasing a new vehicle in this throughout the country on a weekly basis A huge part of Lala’s work over the two transparent way is just the start. Our goal - so we knew exactly just what the status years since his return has related to the is to provide customers with the best was,” he says. “We have provided as much “Drive Happy Project”, a massive shift for support as we possibly have been able to the company to vehicles being sold using ownership experience. in terms of cashflow.” dealers - or stores as they are now called “So, how can you provide transparency, - as agents. The cars remain in Toyota operational efficiency throughout the entire Of course for dealers, the “Drive Happy” ownership and are delivered from hubs. customer engagement process? So, we are model means they were not carrying the cost of new stock during the lockdown. Lala notes it was a big move. only at step one of a multi-step process, and I’m pretty proud of where we’re “Our Toyota store stores are responsible “Two years ago, we set off on this journey heading and how that design is looking.” for delivering the best customer service to really want to change the way customers - so they don’t have the burden of the purchase new cars. And that was a big BOUNCING BACK holding costs on those vehicles. shift - our stores were making good COVID-19 has hit the entire automotive money, our CEO’s were comfortable with “We had nearly 460 cars in lockdown at market, though thankfully Lala notes the old business model. And I guess for dealer stores that we just hadn’t been able things are recovering. the courage of the staff and the CEOs of to deliver before the end of March. But of all the stores to actually completely pivot “In terms of our Toyota stores, we’ve seen course the burden of that cost, it didn’t from the traditional way of selling cars to quite a rebound in the last four to six fall on the network. That was a cost to our this new model has been a monumental weeks. But part of that is us delivering cars business.” CONTINUED ON FOLLOWING PAGE...

JULY 2020 New Zealand 9 CONTINUED FROM PREVIOUS PAGE...

Unlike Turners recent confirmation they are Lala says he had a chance to look into the because you don’t have one.” stepping away briefly from the importation future product roadmap while in the US.” “One of the things I think we tend to of used vehicles due to the COVID-19 hit to “I had a nice little entree into what was do well is introduce product at the right the market, Lala says they are staying in. coming, and the design language, the time. It’s taken a long time for hybrid “We are still looking at moving forward in treatments, and interior treatments, demand to reach the level that it’s at at terms of a used import hybrids,” he says. the powertrain evolutions were really the moment. It’s taken more than 25 “We’re certainly finding the demand for exciting,” he says. years,” he says. used import hybrids at the moment is “And we’re starting to see those But the wait is almost over, with Lala still quite high. So that’s an area we will models hit the market today. RAV4 is indicating their first EV product will land continue to focus given we’ve probably got exceptional, we’ve got CHR, which is here in 18 months. He would not say the largest range of hybrids that we could really different, we’ve got Yaris Cross, what it is, but we are predicting it will be offer our customers.” which will be a new compact SUV, which the Lexus UX. PRODUCT GUY is exciting and fun. “We’re 18 months away from introducing “There’s no hidden secret that I’m a our first full battery electric EV, not self- Lala admits to being a product guy, he passionate Supra guy.” charging hybrids, which I know many loves cars - particularly sporty ones. His people don’t like the fact that we call daily driver is a Lexus GSF, while his garage “We’re starting to see a whole new wave them self charging hybrids,” he says. also features a Toyota Supra - with a of exciting products. So as much as I’m Chevrolet Corvette that followed him back excited about driving my Supra home “But in all honesty, we’re the only car from the state’s. tonight, I have to admit, I’m probably company that reached double digits equally as excited as about the new in terms of weighted average C02 Luckily, he returned to New Zealand at Facelift Hilux that’s about the turn up as reductions. We’re hugely supportive of a time of - in this journalist’s opinion well, because I think that’ll tow go-cart the government’s drive to a low emission - product revolution for the brand, trailer probably a little bit better than the economy, and we’re fully committed to traditionally known for competent and Supra.” the fact that it’s a roadmap to achieve reliable but unexciting models. Now the low emissions.” brand is building desirable, increasingly While Toyota is massively into hybrids, stylish and exciting vehicles. Lala is not so sold on EVs - yet. And hybrids are the best solution at the Much of this change has occurred under “I guess you’ll see fully electric vehicles moment.” the leadership of Toyota president Akio from Toyota when there’s demand for Toyota, who has repeatedly said he fully electric vehicles. I know that’s an wanted the brand to produce more easy answer, and of course the cynic will exciting vehicles. say, “Oh, well, you’re only saying that

10 New Zealand JULY 2020 BALANCE KEY FOR ALISTAIR DAVIS

Outgoing Toyota chief executive Alistair coveted #1 position the following year Davis says his plan now is to see what (“just lucky timing,” he says). God puts in his path - albeit one of those In 1995 he was promoted to senior paths will be walking the Milford Track general manager taking responsibility for early next year. all the after sales functions as well as his After 40 years with the company he is responsibilities for new and used vehicles looking to step down from some of the sales and Toyota NZ marketing. boards he sits on - he remains on Toyota’s In the early 2000s he was seconded to for two years - spend more time with his Toyota Motor Sales, in the US with a range family and get out cycling. of assignments, including assisting Jim He deserves the break, having worked Lentz (later President of Toyota North through and adapted to more change in America) launch the youth brand Scion. the trade than most others. Shortly after his return in 2004, he was He joined the company from university in appointed executive director of TNZ and the late 1970s, experiencing the opening a promotion to chief operating officer of the controlled market, controls on followed in 2007. In January 2008 he took wages prices, and import licensing over the chief executive officer role when (which required local assembly of motor outgoing CEO of 25 years Bob Field retired. plant into a vehicle refurbishment centre. vehicles), to the move in the late 80s to He was instrumental in a raft of This enabled Toyota to offer customers both an almost “neoliberal” approach with initiatives to ensure customers were at used imports and ex-rental and lease cars a completely open market to both new the forefront of the business, including refurbished to Signature Class Standards. and used vehicles with relative light the establishment of Toyota’s award- Toyota’s used car business has expanded compliance standards. winning Dialogue Centre, the introduction the value chain and this business has now He has seen the pendulum swing back of Extra Care products, a big investment grown to almost $300 million per year. and forth, now sitting at a more balanced in training (then named Toyota Training Fast forward to 2018, and Alistair was approach. He says what’s happening with Institute), the establishment of Toyota instrumental in turning the traditional market pricing is more of an equilibrium; Finance, and the introduction of three- method of buying a new vehicle on after fixed prices in the early 80s to a year warranties and Lexus Care. It its head – shifting from the more free-for-all in the late 90s to the digital culminated in the establishment of a traditional purchasing model to an revolution today in which car-buying deals National Customer Service Centre (NCSC) in agency-based model and introducing in the provinces must be as good as those Palmerston North in 1991. the “Drive Happy Project”. in the larger metropolitan areas. He, alongside his colleagues, was “When I reflect on all these significant Balance has been a common thread passionate about reigniting this legacy of milestones in my career, all of them took during his career he notes - carefully Kiwi motorsport and seeing the next world time. A long time,” Davis says. balancing his strong Christian values with champion grow from Kiwi soil. “The key is having an ability to persevere. the company values. Balanced the need The Toyota Racing Series is testament to this You don’t achieve success overnight. to make a profit with the desire to look brainchild and dream, breeding a new class Take Barry Crump; that was 14 years, the after staff and stores and meet the needs of Kiwi youth suddenly making the world America’s Cup took three decades and the of customers. Balanced the need to work stage again – like Mitch Evans, Brendon new business model ‘Drive Happy’ was 10 hard with his personal values to observe Hartley, Nick Cassidy, Marcus Armstrong and years in the making.” the “Sabbath” and take time for personal Liam Lawson, to name a few. health and family and well-being. “I hold on to a saying that I often quote to Another area of huge impact during his my kids: ‘Observe the postage stamp. Its As Toyota’s first New Zealand graduate tenure has been the hugely successful effectiveness depends on its ability to stick to enter directly from university, Davis establishment of the Signature Class at it, until it gets there’.” went straight into an accounting role. He brand and used car business. With the had to learn on the job as the previous deregulation of the New Zealand vehicle He acknowledges the support of his team management accountant had left the industry came the advent of used vehicles in his success. week prior. imported from Japan. “A CEO can do very little on their own,” With the deregulation of the New Zealand After initially trying to stop the trade Alistair says. “Whatever success I have economy and Toyota’s ambition for market in order to protect local jobs and the had at Toyota over the years is largely leadership, the opportunities for personal manufacturing infrastructure in New attributable to the team I have had and career development in the 1980s were Zealand it eventually became clear that around me.” considerable. NZ no longer needed a vehicle assembly (Parts of this story we copied - with By the age of 30, Alistair was promoted to industry. permission - from Toyota’s Believe general manager of sales, marketing and Accordingly, Toyota entered the used vehicle magazine) planning in 1987 and Toyota reached the trade and converted its Thames assembly

JULY 2020 New Zealand 11 PREDICTIONS OF DESPERATE DISCOUNTING PROVE FALSE

Predictions by the media earlier this year of used car prices tumbling as dealers push to clear stock and turn cars into cash appear to not be bearing out according to many in the industry spoken to by AutoTalk.

MARK GREENFIELD DAVID VINSEN FRANK WILLETT EUGENE WILLIAMS

sed import sales over the last month “This is contrary to the media’s initial Australia),” he notes. “Whether there is a were up 7%, while secondhand report that there was going to be a surplus stock shortage depends on who you speak Usales are up in the 20% range - of stock and that prices would fall,” Vinsen to…” while arrivals are recovering, but still behind says. Accordingly imports from ‘other’ countries the the volume required to replace sales. “There is going to be a shortage,” Vinsen are up in the latest arrival figures. MotorCentral general manager Mark explains. “We think it is about six weeks 2 Cheap Cars director Eugene Williams Greenfield says the DMS firm is hearing or two months away at this stage - it believes most dealers won’t suffer too from dealers - and seeing in their online depends on how things pickup in terms of much of a shortage as pre-ESC vehicle stock vehicle listings website Needacar.co.nz - supply and the local market.” levels remain high. that there is currently less stock available Autohub’s Frank Willett noted part of for sale on a per dealership average. “Everyone should be over stocked with pre- the shortage does come down to the ESC build-up,” Williams says. “So I can’t “Stock levels are down,” Greenfield says. introduction of Electronic Stability Control imagine running out of stock this side of “And it is pretty consistent particularly on all imports - a move that was set Christmas.” with import dealerships. This has forced to massively disrupt the trade, but has some to look locally for stock which places largely disappeared in visibility during the “With or without COVID-19, everyone even more pressure on capital. COVID-19 process. knows buying was going to be sketchy, so would have built a reserve of stock.” “Dealers that were struggling pre-Covid “We are expecting the level of imports to are continuing to struggle and are in a remain fairly low, volume wise,” Willett Interestingly, as reported in AutoTalk last difficult position,” Greenfield says. “That says. “This is mainly due to the effects of month, Turners has temporarily pulled being said we have seen a large number ESC (ESC equipped cars cost more), a firming out of importing used vehicles from Japan of dealerships over the last couple of or even increase in second-hand vehicle - choosing instead to focus on locally months start to take action and proactively prices in Japan – Japan is not selling as available stock. make long overdue change with their many new vehicles as they were pre COVID, Toyota New Zealand says it is still importing dealerships. This has been evident not only so Japanese domestic dealers are now stock from Japan, drawing mostly on hybrid through better utilisation or our systems trading in higher volumes of low mileage stock. and solutions by existing dealerships, but quality used stock.” also with 14 dealerships coming across to “Many dealers in NZ are complaining that MotorCentral in June.” vehicle prices in Japan are too high at VIA chief executive David Vinsen shot back present, and are sourcing local stock or at the media predictions of price drops. looking at other markets (UK, Singapore,

12 New Zealand JULY 2020 AT HEART AN (EV) WHITE VAN MAN

SUBSCRIBE TO Ford Motor Company of New Zealand managing director Simon Rutherford confesses to THE AUTOTALK NZ PODCAST TO being a big fan of the new Transit plug-in hybrid electric vehicle (PHEV). He spoke to HEAR THE FULL Auto Media Group managing editor Richard Edwards about the positive changes the INTERVIEW COVID-19 pandemic has brought to the local motor industry.

imon Rutherford says maintaining the industry is going to settle, what the in the new normal post COVID-19 and communication with the dealer outlook is for the next couple of years,” it will react to which pathway the Snetwork and being pragmatic about he says. customers choose to purchase and the business was key to coming through Rutherford says Ford is looking at service vehicles. the challenges of the COVID-19 pandemic recovery patterns in both the global and Ford New Zealand supported its dealer in New Zealand. New Zealand car markets. network with a pick-up and delivery Ford New Zealand held up to three video “We anticipate that things will settle option for customers who booked a calls a week with the dealer network, down, that right now, things are scheduled vehicle service. with everyone receiving consistent certainly better than we thought they “It was very popular with the customer communications and messaging and might be. What we’ve seen happen in and we’ll look to continue that service the brand was also able to deploy some other markets is exactly that, a little as we move forward,” he says. innovations for online selling. bit of a catch up and then settling back Rutherford says it’s important in “Everybody had the benefit of down into a more normal suppressed the new normal to continue to offer collectively hearing the same message at pattern. That’s the assumptions we’re customers a choice of how they interact the same time,” he says. working with.” with the brand at the dealership level, “We’re now just really trying to, much Rutherford says Ford New Zealand some people are happy to use digital like everybody else, understand where remains focused on customer behaviour services for purchasing and servicing, CONTINUED ON FOLLOWING PAGE...

JULY 2020 New Zealand 13 CONTINUED FROM PREVIOUS PAGE... while others prefer old-fashioned Rutherford says Ford is also committed Rutherford says Ford’s $14 billion dollar face-to-face contact. to developing product in the Asia Pacific investment in BEVs three years ago is now “We moved on the digital paradigm region as it has done historically with bearing fruit in the cycle plan, as well and because we had to, but the reality Ranger and Everest and new products sharing the ID.3 and ID.4 platforms with is that we need provide component as the brand goes forward with the VW gives the company a bigger electric elements for the customers and let Mahindra or other alliances. arsenal. them make the choice. In regard to the recent Volkswagen/ “I think that as those technologies scale “I think that customers really value Ford alliance, Rutherford says and we see the effect of European regimes on our cycle plan, then we can look human touch, interaction and the Blue Oval is the lead on the forward to seeing many more BEVs in our service, but may be happy to do underpinning of commercial vehicles plans as we go forward,” he says. some things online when its suits such as Ranger and Transit, and then it’s the other way around on the BEV them,” he says. The recent acquisition of Grey Ford by platforms. Team Hutchinson into its dealer network He cites the US market where in the Rutherford says plug-in hybrid electric shows a satellite and hub approach which last few months 75% of Lincoln brand vans are coming to the New Zealand Ford New Zealand fully supports. vehicles were sold online. market in the form of the Transit “What we’re looking to deliver for the Rutherford believes that Kiwi Custom and the short wheelbase customer is effectively something that’s customers in metropolitan locations Tourneo people-mover. invisible to them, but it provides us are more likely to follow the digital “We’ve actually got one of those an efficiency in the way that we and path to purchase and service [Tourneo] here already that we’ve our dealers operate that’s designed to transactions but rural customers will been driving around and it’s super make sure that we continue to have be more likely to maintain their face- cool because it’s got all these different representation where we need it really. to-face interactions with dealerships, modes on it that. I love it, I’m a big “I think it’s really important that we as they prefer the personal touch. Transit fan,” he says. maintain that local accessible feel to Ford. When questioned about Ford He says a plug-in hybrid Ford Escape So providing a structure that can continue maintaining a presence in Australia SUV will arrive in market in October to do that rather than have to step away is and New Zealand as Holden bows which he is personally very excited really important. I think COVID’s probably out, Rutherford diplomatically points about, but as much as he would love to made us look at that in another context out it was a case of economics. have the Mustang Mach-E come to New and ask how do we make sure we’re “When GM made the decision to exit Zealand, it’s a long way off. sustainable for the future so that we can continue to offer our customers access like Europe and sell out to PSA, I think “I think it’s a fantastic product. The we do today,” he says. that was critical for them because reality is that virtually all production they had a very small volume of right- allocations are sold in the compliance Rutherford says Ford continues to improve hand drive remaining at that point. markets. We’re just kind of waiting the ageing Ranger Ute to ensure it remains “If you look at Ford’s volume, we’re and see as production ramps up and best-in-class. heavily committed to Europe where we see what happens in those other “Some others are just catching up there’s a reasonable right-hand drive markets. We’ve got our hand up, put putting Apple CarPlay and those kinds market,” he says. it that way,” he says. of features into their vehicles, we’re

CONTINUED ON FOLLOWING PAGE...

14 New Zealand JULY 2020 CONTINUED FROM PREVIOUS PAGE... now getting Ranger into as a connected “We’re committed to giving customers “We’ve sold all the Fiesta STs that we’ve vehicle linked to the FordPass and we what we think is the best of the bunch. had allocated so we just asked for some continue to evolve the product. We don’t plan at any immediate point to more because they’ve all gone. On He is not concerned that the new BT-50 exit passenger cars per se. We’re focused Focus ST, because we never had an auto has a different platform and a new look. on the performance elements perhaps of before the same thing’s happening. those and then core SUVs and commercials So we’re delighted that we’re able to “We think that our product overall, its so no immediate plans beyond that.” offer products like that, that we haven’t driving dynamics, the power trains that been able to put into market before,” we offer, the ten speed, are all class He says demand for the Mondeo wagon he says. leading elements. And we certainly remains strong but Ford is conscious of don’t rest on our laurels because no fuel consumption so only a Hybrid version one can afford to do that,” he says. is available. Rutherford does concede that Ford New Zealand could be considered the Ranger car company “Arguably we were the Falcon motor company at one point and we’ve been various other single nameplate companies in the past, but I think it really is because Ranger is so strong and so adaptable, it’s a big segment, it covers a lot of people’s needs and it’s a clear product winner. So I think that that’s part of the challenge, as you know we’ve got Transit which we started to grow, that’s helped us to get our commercial leadership overall. I think primarily it’s just perhaps that we haven’t necessarily Drive away vehicle insurance been in a strong related space, but the new products give us designed for dealers an opportunity that we’re really looking forward to. We’ve been proudly protecting Kiwis and their vehicles for over 20 years. One new product that Rutherford Our focus is to make point of sale vehicle insurance as simple as possible for says he is excited about is the our dealers and their clients. forthcoming Puma small SUV, a growing market segment that Ford New Zealand has not played • Full Comprehensive Vehicle • Easy weekly, fortnightly, monthly in before. The company managed Insurance Policy underwritten or annual payments – whatever to obtain some early build cars by Lumley works best for the customer which it showed the dealers under tight secrecy. • Dedicated 0800 number for • Open minded underwriting, all “Dealers are always a great quotes and cover – 7 days a week licence types and driving history gauge of how they think our considered products going to go and they • Online dealer portal for instant were all over Puma, they loved quotes and to place cover it. They saw Escape as well, they thought that that was fantastic, but they came walking away saying, ‘Gosh, Puma, that really Contact us today to become an is a stunning looking vehicle,’ so we’re really excited about Authorised Go Cover Dealer that,” he says. Rutherford says that in terms of 0800 111 801 | www.gocover.co.nz product Ford New Zealand will react to the market and provide the vehicles customers demand.

JULY 2020 New Zealand 15 FIELDAYS AT MYSTERY CREEK, PICTURED HERE IN 2019, WAS CANCELLED BECAUSE OF COVID-19. HAS CANCELLING FIELDAYS AFFECTED SALES?

June is a big month for the New Zealand new vehicle industry with promotional pricing, special models and deals revolving around the New Zealand National Fieldays run at Mystery Creek on the outskirts of Hamilton.

he deals start as early as April and can run as late as September but Fieldays, slap-bang in the middle of the Tperiod is the hook on which they’re based. Ute sales peak in June as farmers and fleets upgrade and in recent years Fieldays has become a sort of unofficial New Zealand motor show, with cars mingling with the utes, light-duty trucks and vans. But this year the COVID-19 pandemic scuppered Fieldays just as it halted business in general and sent the country into lockdown. • Automotive DMS & IMS Solutions The organisers called off the Mystery Creek Fieldays and have replaced it with an Online Fieldays which runs from July 13 to 26, • Drive Results in every area of your though few of the major vehicle distributors are supporting it. business with Autoline However, most of the car companies have continued with Fieldays- oriented promotions, some pointing out that though they had a • Autoline, the most globally endorsed presence at Mystery Creek most Fieldays promotion sales were made DMS, is a flexible, scalable solution at dealerships throughout New Zealand. The cancellation of the physical show has certainly affected sales, • Supported by New Zealand’s largest but most distributors cite the slowdown caused by COVID as the DMS provider greater factor. For instance, Ford New Zealand says the cancellation of Fieldays has “no doubt had an impact on Ford and the industry, but it’s difficult to look at the event in isolation. “For us, Fieldays is a great customer event in that every year Ford hosts thousands of people on our stand and we have a chat while introducing them to our latest line-up of vehicles,” says a Blue Oval spokesman. Contact Details “The event itself isn’t a direct selling event for Ford so there’s no P: Admin +64 9 583 2482 sales pressure when people visit. We do have salespeople on hand Support +64 9 5832424 should someone want to buy something on the day but for us the E: [email protected] CONTINUED ON FOLLOWING PAGE...

16 New Zealand JULY 2020 ...CONTINUED FROM PREVIOUS PAGE event has always been more about branding, showing off our latest vehicles and providing a great customer experience.” But he says that combined with the overall lockdown and slowdown, there has certainly been an impact. “This is normally a peak month for Ford and the industry. We did need to revise our June 2020 forecast lower than the year previous but we’re currently on track to perform better than expected. “We continued with a couple of those specials with our current Transit Custom Sport and Ranger FX4 but we’ve had to postpone other promotions.” Toyota New Zealand which has had a significant presence at Fieldays in recent years, says the absence of the event had minimal effect on its sales given some of the wider economic issues influenced by COVID-19. Toyota says vehicle sales aren’t its key reason for attending Fieldays. “Our primary focus VIP dates, and the ringing of the bell He says Fieldays is a crucial sales period for at Fieldays has been on brand-level activity tradition continues (traditionally the bell is Mitsubishi NZ. “Having said that, Fieldays is where visitors can experience the Toyota rung every time Hyundai makes a sale at more than just the event itself – it’s a full brand and get an insight into some of our Mystery Creek during Fieldays). April to July sales period. product activity,” says a spokesperson. “So, relying on the event to drive sales hasn’t Hyundai will be participating in the Online “As we were well prepared to pivot during been a priority. “ Fieldays and has a ‘virtual’ site where it lockdown, we’ve been able to launch our Fieldays promotions like normal and take full Toyota is running a four month offer across will promote its Good as Gold deals. advantage of market demand. new and used vehicles (that’s) “similar to “We’ll be providing Fieldays Online users what we would have in place in parallel to with added value through partnership “While by no measure is it ‘business as our Fieldays presence in previous years.” content, such as Hyundai Country Calendar: usual,’ we’ve been genuinely heartened by the results so far and expect to post strong Hyundai New Zealand which has been The Innovators series. results this quarter.” a partner of Fieldays since 2012, says “Our ambassador Dr Tom will appear in a it has “certainly missed the hype and series on Fieldays TV talking about health Isuzu Utes which has run an off-road excitement” the show brings. and wellbeing in the rural sector, and experience on a purpose-built track at Fieldays in recent years, says it will run a It says Fieldays “enables us to show our we’ll be educating the sector on hydrogen digital platform in the Online Fieldays and continued support for the rural sector; invite as a fuel source.” will run Fieldays-like local experiences at many of our loyal customers along for some Mitsubishi New Zealand’s head of its dealerships. hospitality; and introduce the Hyundai brand marketing, Reece Congdon, says he to new customers.” doesn’t know if any brand will know “We’re currently running Good Bastard Fieldays offers including the run out of the June is traditionally a large month for the for sure how big the impact of Fieldays’ current model D-Max.” A new model will new car industry, and Fieldays plays a part cancellation will have on sales or “how debut later this year. in that, says a Hyundai NZ spokesperson. much of that impact is down to a lack of “However, the cancellation of Fieldays is not consumer confidence.” Nissan New Zealand’s managing director what has had the greatest impact on our Congdon says Mitsubishi had advertising John Manley says it’s virtually impossible to sales and business. Coronavirus has greatly material for its Fieldays promotions quantify the effect that cancelling Fieldays affected the NZ economy and in turn the new completed well in advance of the COVID had on sales, given the level of COVID car industry as a whole.” lockdown, “so we’ve been trading disruption within the marketplace. Since June 11, Hyundai has been running strongly since Level 3. “That said, June has been more positive Good as Gold Fieldays deals across new and “Before lockdown we filmed the campaign with dealers across the country reporting near-new Hyundais. “We’ve tried to bring for our Fieldays hero offer, Triton Black increased levels of inquiry.” Fieldays to life a little at the dealerships Edition. In addition, we also finished Manley says the automotive marketplace with Fieldays point-of-sale, the salespeople off campaigns for new Mirage, ASX Black “took a hammering from COVID in both April donned their gumboots during our special Edition and our ASX ‘style up for less.’” and May and I believe Nissan would be no

CONTINUED ON FOLLOWING PAGE...

JULY 2020 New Zealand 17 ...CONTINUED FROM PREVIOUS PAGE different to other distributors in that we Great Lake Motor Distributors which markets have stock on the ground and a desire to get SsangYong and LDV says its June sales have ourselves and dealers back to business. been little affected either by the cancellation “We’re running a marketing campaign of Fieldays or by COVID-19. offering a zero deposit, 1.9% finance rate “June is always our biggest month due to with no payments for three months and Fieldays, but this year, despite the absence of this is driving very positive inquiry.” Fieldays, sales are strong too,” says general Manley says the whole ‘Fieldays’ selling manager Andrew Bayliss. event is a misnomer and has been for some “Surprisingly, we’re close to June 2019 years. numbers with both SsangYong and LDV. “The original Fieldays was a tightly-defined We’re flat out and on target for a really strong four-day selling event linked exclusively to actually purchasing the vehicle onsite. “This month for both brands. an actual presence at the National Fieldays offer wasn’t available elsewhere and thus the “Perhaps it’s a result of pent-up demand agricultural show held in Hamilton. ‘Fieldays deal’ was born. after the lockdown, or with vans in particular, “The timing of the show was not to coincide “Over time the parameters were relaxed to there’s strong demand perhaps as a result of with rain, mud and fog, but was essentially the point that Fieldays deals went from late the home-delivery market. farmers’ downtime: dairy payments had May through to August with the reality being “With SsangYong, we have a new model been made, and there was no lambing, that rather than Fieldays motor distributors Korando that’s going very well, but Rexton calving, sowing, harvesting... were marketing, under the Fieldays and Rhino continue to go well too.” “The original concept was for farm/ banner, into the peak selling period for LDV has been running a Fieldays-oriented agricultural products only with motor (predominantly) utes.” deal on the T60 ute, offering $3000 worth of vehicles strictly limited to farm equipment Manley says the parameters were relaxed for free accessories, and both brands have been and utes. It was some years before cars several reasons such as online marketing and running finance promotions. were permitted onsite.” potential issues with distributor franchise Manley says that originally, Fieldays visitors agreements offering special arrangements to could secure a special Fieldays deal by some dealers and not others.

Exclusive GET MORE OUT OF YOUR

TRADE ME Data DIGITAL ADVERTISING

Exclusive access to Trade Me data

More sophisticated audience targeting

Extended reach for digital campaigns

More leads, less wasted spend

CHAT WITH US TODAY adtorqueedge.co.nz ADTORQUE [email protected] 021 986 027 EDGE

18 New Zealand JULY 2020 ADDING VALUE TO CAR DEALERS

A new online service called Smart Dealer has recently been launched into the New Zealand market in an effort to support car dealers seeking an efficient and rewarding end-to-end finance solution.

mart Dealer is the latest creation to platform which the company says provides “Customer experience and compliance is at be launched by digital automotive an efficient end to end finance solution the core of every transaction for us.” Sfinance provider Simplify.co.nz which and much more. “Our whole focus is gaining and keeping was founded in 2015 by Scott Robertson “We specifically designed this new product buyers, so we can offer customer retention and Glenn Wilson. for dealers, who are focussed on selling management to the dealer as part of the Robertson and Wilson say that Simplify cars and by their own admission are Smart Dealer platform. has grown by focussing on providing not finance experts and don’t want to “We truly believe no other market easier access to finance, improving the get bogged down with the paperwork operator tries to deliver such value to process for buyers, with a commitment to and administration that manual finance dealer customers – we want to keep the seamless transactions and a positive car applications require,” says Simplify director dealer focussed on their core business buying experience. Glenn Wilson. which is selling cars, whilst recognising The company’s Smart Seller and Smart “As a licenced broker we have a full suite strong commercial results that are Dealer platforms have become well of finance options from multiple lenders, generated from these partnerships ” says patronised by buyers and dealers in New this reduces the possibility of losing a Wilson. Zealand’s competitive new and used car customer and adds more value to the The Smart Dealer online service from marketplace. The platforms have both transaction experience for the car dealer Simplify.co.nz is available to new dealer helped more than 5000 Kiwis finance their and the customer. In an ever changing customers in New Zealand from July 2020. vehicle purchase. environment where compliance has never Dealers interested in the new platform can Now Simplify.co.nz is focussing on helping been stronger, customer experience is email inquiries to [email protected] numerous car dealers to sell more cars crucial to a positive transaction and more by offering them the new Smart Dealer and dealers are recognising this.

T H E V E H I C L E D E A L E R ’ S N E W S S O U R C E

NOVEMBER 2019 .CO.NZ $114 + GST PER YEAR THE VEHICLE DEALER’S NEWS SOURCE (ONLY $9.50 + GST A MONTH)

.CO.NZ

T H E V E H I C L E D E A L E R ’ S N E W S S O U R C E Have you enjoyed reading this edition of Autotalk?

DECEMBER 2019 The next generation Hayden Johnston on Would you like to receive one in the mail each month? business, VIA and a A Stella Career JANUARY 2020 p8 - 9 return to regulation p9 - 11 Call, email or sign up online now to arrange your VIA to restructure p3 .CO.NZ yearly subscription of the printed magazine for MG Boss talksUnique business for dealers andformer Turners

growth Mechanical Breakdown Insurance p36-37 manager p12 Payment Protection Insurance Loan Equity Insurance Targa time: Above Motor Vehicle Insurance www.autosure.co.nz | 0800 267 873 Name: the limit in the new Supra p39 The market leader for over a decade. Shift to the Autohub Team and experience the Autohub difference. GL Email: OBAL VEHICLE L OGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE | www.autohub.co

The market leader for over a decade. Shift to the Autohub Team and Number: experience the Autohub difference. www.autohub.co

NZ · JAPAN · AUSTRALIA · UK · EUROPE | OGISTICS GLOBAL VEHICLE L The market leader for over a decade. Shift to the Autohub Team and In the heart of Hobbiton: Mechanical Breakdown Insurance Postal: experience the Autohub difference. www.autohub.co Payment Protection Insurance Loan Equity Insurance NZ · JAPAN · AUSTRALIA · UK · EUROPE | Baigent MOTORS OGISTICS Motor Vehicle Insurance GLOBAL VEHICLE L p8 - 10

www.autosure.co.nz | 0800 267 873 Mechanical Breakdown Insurance Visa Mastercard Payment Protection Insurance Fuel tax to go Loan Equity Insurance p3-4 Mechanical Breakdown Insurance Motor Vehicle Insurance Payment Protection Insurance www.autosure.co.nz | 0800 267 873 A night at the Loan Equity Insurance boom-crash Motor Vehicle Insurance Credit Card No: Exp: opera www.autosure.co.nz | 0800 267 873 p14-16 The market leader for over a decade. Shift to the Autohub Team and experience the Autohub difference. GLOB Name on Card: AL VEHICLE L OGISTICS Scan completed form and email NZ · JAPAN · AUSTRALIA · UK · EUROPEto: | www.autohub.co [email protected] Signature: or [email protected] or phone Fran Da Silva NB. If you don’t need a printed copy subscribe for FREE and download a PDF www.autotalk.co.nz/subscribe on +64 21 933 279

JULY 2020 New Zealand 19 NICHOLSONS PICK UP KIA FOR WHAKATANE

Kia will now be represented in the Eastern Bay of Plenty, with dealership-group Nicholsons adding it to its Whakatane dealership.

ean Nicholson and his brother, provides value for money and we know vehicle showroom with a modern lounge Ross, have added the brand to it is going to be very good for the people providing coffee/refreshments and Wi-Fi for Dthe centrally located site. It will sit and businesses of Whakatane and the customers. alongside Suzuki, and replace Holden at surrounding districts,” he explains. It includes a well-equipped service centre the dealership. Nicholson says the local economy is that is being upgraded in line with the Chief executive Dean Nicholson says they developing well. requirements of Kia Motors. will be increasing staffing as they take on “It’s a very progressive region, with a the Kia brand. number of different industries based This includes provision for the expansion “Our strategy is to build on the around here that we support through our of EV vehicles in the future and additional reputation we have in Whakatane to activities. There is a lot of iwi development training for staff on the new technology, enable our local community to be able going on, tourism, forestry, dairy farming, following the recent announcement by Kia to source vehicles in their own town beef farming, kiwifruit and honey is Motors of a worldwide plan to ramp up its and we’re very pleased we can now big, too. We also have the big mills at electric vehicle range over the coming years. offer them Kia, as well as being able to Kawerau.” Todd McDonald, managing director of Kia support local employment – we will be Nicholson says the decision to bring Kia to Motors New Zealand, says the expansion of increasing our numbers slightly in line Whakatane was prompted by the strength the Kia brand into the Eastern Bay of Plenty with the arrival of Kia,” Nicholson says. of the brand and the investment being The plans were interrupted by the COVID- made by Kia Motors to grow its business in is an exciting opportunity for all concerned. 19-induced lockdown but with the New Zealand, supported by projections of “Dean and his team have greatly impressed country now back to normal operating even stronger growth in the future. us with their extremely professional levels, the move has now been completed. The establishment of Kia in Whakatane customer-oriented approach, which reflects And it coincides with a strong performance coincides with the 40th anniversary of the philosophy of Kia Motors,” McDonald by Kia following the re-opening of the the Nicholson family business, which was says. “We are very pleased to welcome the economy, where it has seen sales increase. started by the late father of Dean and Ross Nicholson team to the Kia Motors family “Kia has become a really strong brand and in 1980 in Morrinsville and has expanded and we look forward to the expansion of it complements our business and suits our over the years. our brand in the region.” image,” Nicholson says. The Whakatane Kia site at 152 Commerce “It’s a top quality product that also St, Whakatane boasts an impressive multi-

20 New Zealand JULY 2020 AUSSIE USED CAR MARKET BOUNCE BACK

Cox Automotive Australia Retail Solutions through its brands, Digipurple, Dealer Solutions and Kelley Blue Book has compiled a market insights report of the effects of COVID-19 on the Australian used vehicle market from March to May 2020.

ox Automotive Australia Retail turnaround from the start of May and Solutions chief executive officer continue strong upwards trends. CMichael Sommerton says the insights Although mid-April is known for a short report on market trends are thankfully downturn with the Easter period, delisted showing signs of recovery. vehicles slowed well ahead of Easter. “In the case of the used car market, Despite long-term uncertainty over the trend activity on delisted vehicles COVID-19 the market recovered by week is the best it has been in 12 months,” one of May to normal levels as it did in Sommerton says. 2019 post-Easter. Delisted vehicles are an indicator on the Cox Automotive sees a continued CONSUMER ACTIVITY AND BEHAVIOUR volume of vehicles being sold in a given demand for vehicles pushing the 7, 14, INSIGHTS month. and 30 rolling averages beyond the Cox Automotive has more than 700 “Buyers have returned to dealership usual rebound. websites across its dealer platform and websites to research, browse, and buy cars Some of the reasons for this trend could be says despite the sharp drop in April with solid increases in engagement, leads, due to the discounted prices dealers have compared to March, the recovery in May and conversions,” Sommerton says. offered to reduce growing stock levels, has been impressive. “There is no doubt, the market has buyers holding back sales since February, There was a 59.9% increase in unique dramatically shifted and the way in which or the availability of cash from early visitors across the website platform in we buy and sell cars will be far more superannuation access under COVID-19 May compared to April, and customer digital and contactless than ever before,” legislation. engagement strengthened during he says. May 2020 reported an 88.4% increase in the peak of the COVID-19 period with customers viewing more pages and MARKET TRENDS SUMMARY delisted vehicles compared to April 2020. Compared to the same period last year, the spending more time of dealer websites in On average, it took 26 days for dealers to number of delisted used vehicles increased April and May compared to March 2020. sell vehicles in May 2020 compared to 18 33% from May 2019 to May 2020. Tracking closely with unique visitors days during the same period in 2019. There was a 13.2% decline in active used to websites, total leads also dipped Digital advertising is costing less and vehicle listings in May compared to April 14.29% in April compared to March delivering more. Due to a decrease 2020 but a 7% increase in active used before recovering strongly, up 35.7% in in digital buying across Google and vehicles listings in comparison to May May 2020. Facebook, dealers who continued to 2019. The fall in leads was not as large as the advertise saw lower marketing spend On average, active used vehicles were and better performance. drop in total visitors. This, combined with listed in the market for 26 days in the page view and time on site numbers, Dealer website customers shifted to more May compared to April 2020 which indicates that customers who remain in serious buyers across the Cox Automotive reported an average of 24 days. In the market are of a high quality. network which led to a jump in lead to May 2019, active used vehicles were Leads from vehicle detail pages increased sales conversions from chat and form listed for 18 days. submissions. by 51.5% from March to May 2020. Cox Automotive says by reviewing the The utes and 4WD categories made up USED VEHICLE MARKET PERFORMANCE last six months of price points at which 47% all of vehicle searches on the dealer SNAPSHOT vehicles were delisted and applying a website platform directly correlating to Following the decline in delisted vehicles 14- and 30-day rolling average (to allow the introduction of the government’s with the effects of COVID-19 lockdown and for the effects of COVID-19), it sees a buyer instant asset write off scheme. expected negative buyer sentiment in late preference/stock availability for c ars in March, rolling averages staged a positive the $23,500 to $24,000 range.

JULY 2020 New Zealand 21 CRAWFORD’S CASE

BY DAVID CRAWFORD | CEO MOTOR INDUSTRY ASSOCIATION BORDER ISSUES A RISK

I was hoping to write in this month’s column about subjects other than COVID-19 except for a few congratulatory comments.

was also hoping to be able to make positive noises about the pending trans- ITasman bubble and how that might ease some of the economic pain we are facing. Further, I would have liked to have been able to congratulate the Government and officials on a job well done. Instead, I find myself regularly doing a face palm, muttering damn and becoming increasingly bemused as I read daily the unfolding cockups over managing our borders border blunders shows just how much this our submission. Once we have sent our to control the inadvertent importation of Government is becoming increasingly out of submission in it will be posted to the MIA COVID-19. touch with the mood in New Zealand. website. I am not alone, the discontent among New Delivering border controls may be an Looking forward we are commissioning Zealanders at large is readily apparent. operational matter and the Director-general of some work to develop a two page ‘cheat Health may have apologised for the blunders, It ought not to be that hard to protect our sheet’ which describes the value of the new but the Minister remains accountable for the borders. Costly maybe, but not hard. We vehicle sector to New Zealand’s economy. deserve better. policy decisions and ensuring those decisions It has been some time since any work has are in fact operationalised. Protecting our borders is not that difficult, it been done which provides a clear description just requires application of risk assessment The coalition Government is showing all of the size and economic contribution to principles to guide and inform policies. the signs that is it tired, is running out of New Zealand’s economy arising from the Having rid New Zealand domestically of ideas and there remains a chasm of ideology importation of vehicles into our country. COVID-19 our only risk is the border. That between the coalition partners. Having a clear set of economic indicators simple statement implies one thing, and NZ First’s withdrawal of support for light rail, will help us in discussions with officials and only one thing. Protect our border with all albeit for reasons that I don’t agree with, politicians. necessary steps to lock in our hard-earned is nevertheless the right outcome. Light rail I would like to end this month’s column by gains at ridding our country of COVID-19. from central Auckland to the airport is in my mentioning the continued press releases by While the cost of testing and accommodating view ludicrous. Why resort to old and tired manufacturers on the electrification of new people returning to New Zealand might 19th century technology for the 21st century vehicle models, technology improvements be high, it is several magnitudes of order outcomes. Wellington’s metro rail (lack of) in batteries and continued fuel cell cheaper to undertake than having New reliability continues to demonstrate this. developments for both light and heavy Zealand go into lockdown again. On the flip side, it is pleasing to see the vehicles. Up to this point in time, I thought this Government has supported free vocational It remains my view that this technology Government was the right Government to training and also provided grants to will find its way to our shores plenty fast have during the pandemic to manage the employers for each apprenticeship taken enough without the need for regulatory health of New Zealanders. I have no doubt on. With an ageing workforce in our sector intervention. Or put another way, regulatory that it is the wrong Government to manage getting new skills in at the front end remains invention will not see it come any faster, our economy back to health, it appears a priority. it will just impose unnecessary and clueless in that regard. Pile on the debt seems Proposed changes to the Import Health unreasonable costs on consumers. to be their only strategy. Standard (IHS) have been a little confusing, Disclaimer: These are my views, not Now I am having doubts about their ability to the rationale for some of the changes was necessarily the views of the MIA. manage the health outcomes. The Minister of not apparent of the discussion document. Health’s willingness to throw officials under However, MPI has responded to our the bus by blaming them in totality for the questions which has been useful in forming

22 New Zealand JULY 2020 LEAD, TEST DRIVE AND SALES BY SOURCE JUNE 1ST TO 20TH 2020 (VS MAY 1ST TO 20TH 2020) BY MATT DARBY MATT DARBY

ast month AutoPlay shared Interestingly there is a small trend attributed to ‘Web – Classified’ sources some pretty crazy stats showing showing that the types of vehicles increased by 42.0%, sales attributed to Lthe increase in lead, test drive being enquired on are trending ‘Web – Classified’ sources increased by and Sales activity from April to May towards lower price ranges than during 36.7% and sales attributed to ‘Repeat’ 2020. Given the almost complete the pre COVID-19 period. customers increased by 62.8%. shutdown of the market in April it was not surprising to see increases in the SOURCE LEADS SOURCE SALES volume of leads, test drives and sales anywhere from 200% to 800%. Web Classified 33.4% Web Classified 42.0% Web Dealer 21.9% Web Dealer 36.7% This month we are looking at the first 20 days of June vs the first 20 days Brand 95.3% Repeat 62.8% of May. So far this month June is running fairly close to pre COVID-19 Overall, we are seeing a strong bounce levels. Compared to May, Leads are Test Drives were one of the biggest back in activity across the majority up 43.0%, Test Drives up 95.7% and KPI’s to bounce back in May and June of customers using the AutoPlay Sales up 64.6% MTD. (alongside Appraisals) – increasing by 95.7%. Sales Pipeline to manage their leads (approx. 80% of franchise dealership TOTALS TOTAL Test Drives from ‘Web – Classified’ by volume). sources increased by 60.6% from Leads 43.0% 1st-20th May vs 1st-20th June, and As we know, the challenge will be to Test Drives 95.7% overtook ‘Web -Dealer’ (up 48.6%) as sustain this level of activity in what Sales 64.6% the top source of test drives for kiwi will surely be a challenging market for dealerships. Test Drives attributed to the remainder of 2020. Make sure to genuine walk-ins are often attributed check back in Autotalk for more regular Leads from the ‘Brand’ source continue to the ‘Direct’ source in AutoPlay and updates from AutoPlay on pre-sale to bounce back at a higher rate than this source continued to increase – lead activity throughout NZ. online sources such as 3rd party up 180% from the previous period listing sites and dealer websites which continued to generate low volumes SOURCE TEST DRIVES of leads even during the Level 3 & 4 shutdowns. Web Classified 60.6% Leads from the ‘Brand’ source Web Dealer 48.6% increased by 95.3% from the previous Direct 180.0% period in May, but still account for approximately a third of the number of leads generated by ‘Web Classified’ As with all other metrics Sales (up 33.4%) and ‘Web – Dealer’ (up continued to bounce back in June with 21.9%) lead sources. a 64.6% increase in June 1st-20th from the same period in May. Sales

JULY 2020 New Zealand 23 PLANNING FOR THE TIME BEYOND COVID-19 BY PETER AITKEN | [email protected]

s I write this article, I’m unable Within the June Car Dealer Magazine issue as finance and trade in calculators and to let go of this massive an UK e-commerce group GForces put also including self-appraisal tools. Adisappointment that we were together a number of key tips for dealers What about sales out of your region? conned from the reality of what was not seeking to upgrade their website for Within NZ this is not a challenge as it being controlled within our quarantine online sales. can be in the UK due to their Consumer facilities. Some person(s) should be held WHERE DOES ONE START GETTING THEIR Contracts Regulations. However, to account for not doing their job(s) and WEBSITE READY FOR ONLINE SALES? obviously there will be a need for maybe they deserve to lose theirs for GForces says it is a daunting job and absolute transparency for both dealer letting the side down! will require full end to end transactional and purchaser on all the terms and For the past few weeks I have been functionality. End-to-end ability will conditions relating to a home delivery. reading lock down stories from a require, finance quotes, trade-in valuations, number of UK Car Magazines. Certainly, HOW TO DEAL WITH CAR FINANCE accessories, delivery and collection details ONLINE? makes for a fresh change from the plus ability to reserve a vehicle and more. Just as it is important in your showroom, normal US dealer renderings. In many This will allow the consumer to have full dealers need to offer easy-to-access ways the UK car market is just a larger, autonomy and the ultimate choice as to finance solutions online. These can be more complex version of those trading how they wish to buy online. contained in a calculator that clearly conditions existing within both Australia So, I just can’t add a “buy it now” button? explains the payments and benefits. and New Zealand. It’s not about setting in motion a buy now James Baggott is the founder of Car Dealer WHAT ABOUT TRADE-IN VALUATIONS? process, it’s more about providing your Magazine and chief executive officer of It’s possible to embed tools via a @BaizeGroup and in the magazine’s customers with the ability to consider valuation provider that gives buyers June issue he references a very pertinent every aspect of their car purchase on your a guaranteed trade-in value. Risk quote from Intel’s CEO: “Bad companies website. Having an account area where can be mitigated by adapting terms are destroyed by crises; good companies customers can log in and save cars they like, and conditions to explain that poor survive them; great companies are and importantly, a live chat with your staff descriptions, incorrect mileage, or improved by them.” about everything they need to know is key. issues with provenance will reduce the price offered. It may be somewhat sobering for one WHAT’S MOST IMPORTANT TO THINK to reflect on where they believe their ABOUT WHEN IT COMES TO ONLINE SALES? WHAT ABOUT PICTURES, VIDEO AND dealership operation would rank on a Consumers that want to buy online are CHAT? bad, good or great scaling, however, as doing so for a reason and that typically They are vital, online buyers want rich referenced in my recent COVID-19 articles is because they do not want a face-to- content, brilliant photos and compelling there has never been a better time to face sales experience, are time poor and video served up on your website. They rethink your business. just want a simple way to conclude the also want live chat when they are transaction. searching, normally after 7pm. Change management to cater for the “new normal” has now emerged as WHAT DOES A BUYER WANT WHEN IT one of the more critical components to COMES TO ONLINE SALES? the way one runs a business. There will This is about car buying when the car be opportunities on the other side, so buyers want to do it, at a time when it suits my question is: What do you want your them. This will require proving all the tools business to look like beyond COVID-19? to complete the online transaction such

24 New Zealand JULY 2020 JAPANESE TALK

ROLLER-COASTER AUCTION RESULT RIDE BY GRAEME MACDONALD

n what must surely rate as one of the Except - as the tide of Kiwi stock orders most unpredictable marketplace years flowed in to the agents, the Japanese used Ifor the used Japanese motor vehicle market volumes did the unthinkable - they industry, June 2020 added fuel to the contracted further. With new car sales still instability with a roller-coaster auction slumped, the trade-in crisis hit well and result ride of little comfort to Kiwi buyers. truly home to the auction companies and The month started out as predicted - the numbers “exhibited” - entered in auction record 44% downturn in new car sales - dropped to unsustainably low figures. for the month of May led to an increasing The Kiwi favourite in Osaka, the Wednesday shortage of used car trade-in stock to Bay Auction sale, went from the normal mileage, fleet-spec offerings of the tender cascade in to the auction systems. 1500-3000 total down to just 800 units disposal sites, you just two options left- pay While Japanese domestic used dealer across the entire platform to be offered. well over the odds just to secure stock in demand remained a little more stable, Across Osaka, the smaller but equally the hope you could off-load in New Zealand the absence of Kiwi buyers in the lanes Kiwi-centric NAA Osaka went from a usual on a hungry market, or not buying cars. meant the impact was little felt, and 800-1000 units to just 350. The only bright spot of any real mention indeed, bargains were still to be had Worse, demand from Japanese dealers for June was the evidence that buyers have in the lower-grade and fleet-spec for later model, clean, high-grade and worked out the requirements for ESC- stock offerings. low-mileage stock continued unabated, included stock, and there have now been a By the middle of June, however, New pushing domestic price ceilings upwards few more models added to the “buy” lists Zealand had experienced a sustained yet and placing additional pressure on New that we had not factored in. unexpected surge in demand for freshly Zealand buyers to compete by paying For commercials, the rare appearance of imported used cars by the public, and as over the odds for the stock their clients a Nissan NV200 16X-spec 5-seater van strong sales continued through the month, wanted. in the auction lanes is guaranteed to the spending cautionary shackles that had And to complete the perfect storm, the rush find a premium paid by Kiwis simply by kept Kiwi buyers off the computers to buy, back to Japan by New Zealand interests virtue of ESC inclusion, while in cars, a few and the Japanese stock provision agents created a highly competitive environment popular lower-priced models previously muted, were well and truly off. whereby, in effect, Kiwis ended up pitching not considered included such as 2015-on From the first few weeks where buying was against one another - whether the large Nissan Wingroads, selected Toyota Auris still accessible, if at least within the lower supply chains, or the boutique agents, just models with lower specs than the RS180, value stock, with Kiwis still not nearly to attempt to secure the volumes and stock and even the humble Toyota Passo as far as visible across the virtual and physical types in order the “fill the shelves”. back as 2011 - if you knew which sub- auction halls, the floodgates opened in the By the last week of June, nothing was model to look for. second half of the month as the stockpile cheap, or even, for that matter, reasonable. Harder to gauge will be domestic demand amassed in New Zealand during lockdown Even the low-mileage later-model accident through July. Already there are indications was eroded, bank overdrafts that had been grade stock was not immune to hiked that Nissan and Toyota will ramp extended were repaid, and shaky credit pricing, and unless you wanted to fall back production back up at plants shuttered lines restored in confidence. to the seas of white and silver higher- during the earlier part of the COVID-19 crisis, in anticipation of increased consumer activity. June new-vehicle sales figures showing a 23% decline year-on year may still be depressing, but indicate a lift in activity compared to the 44% decline horror-show month of May. Caution therefore must be given to buyers returning to Japan for supply during July - if purchasing at any cost is your only option, be prepared for the sting in the tail if Japan Inc returns to a degree of normality during late summer, new car demand spirals up, and trade-in prices decline significantly. The roller-coaster ride is far from over yet.

JULY 2020 New Zealand 25 ADVANTAGE JUNE 2020

DARK CLOUDS AND SILVER LININGS VALE: SUE FLETCHER-VEA

I’d like to dedicate this column to Sue, my business partner, life-long friend and family member.

uly already…the year’s half over. And I’m naturally an optimistic person, and I These included transport, delivery, storage, what a crap year it’s turned out to be so always look for the positives in any situation. Customs clearance, GST payments, cash- Jfar. Both in terms of the industry, and I’ve titled this article “Dark clouds and silver flows, inspection, compliance, sales and personally. linings”, but try as I might, I can’t find registrations. We were expecting some disruption to the anything positive to come out of Sue’s death The team was able to develop systems, volume of used vehicles being imported this at such a young age. Just ineffable sadness. procedures and recommendations to enable year, as the result of the implementation As far as the used vehicle import industry is each sector to conduct business again as of the last phase of ESC, but that potential concerned, we’ve certainly had a very difficult soon as possible, without breaching the ‘road block’ turned out to be nothing time, but there are definitely some positives. spirit or intention of the various stages of more than a small speed bump in the As with almost every other business sector, the lockdown requirements. Once again, overall scheme of things. COVID-19 and its our industry came to a sudden halt with the an excellent example of NZ Inc (industry subsequent economic and social effects imposition of the various stages of Lockdown. and government) working together. From eclipsed any other events that may have The first obvious manifestation was when a motor industry perspective, we definitely affected us. all Biosecurity NZ’s staff were relocated made significant achievements in removing back to New Zealand at short notice. We, COVID-19 has affected us all in the industry the roadblocks that could have delayed our the government departments and industry and stifled commercial activity, and on a recovery towards normal levels of business jointly, had to urgently develop systems personal note I’ve had the unexpected death activity. and procedures to deal with biosecurity of a family member, friend and business These working groups were flashes of the certification when the vehicles arrived in New partner to come to terms with. I’d known Sue silver lining in the dark clouds of the crisis. Zealand and were unloaded at the wharves, since she was born; her grandparents and There are other flashes of silver. as opposed to being certified before they mother emigrated from England at the same left Japan. The aim was to keep the imports The levels of sales in the industry have picked time as our family, when I was only four years flowing for as long as possible, without more quickly than we had expected; so much old. Our families have been close friends, slowing down the system or compromising so, that there is now a suggestion that there and one of my brothers married Sue’s older biosecurity standards. will be stock shortages in the next couple of sister. So: family friends and then related by We immediately re-assembled the combined months. marriage. industry-government work group who had And the working group collaborations with Sue had a career in hospitality and the travel dealt with the Stink Bug crisis over the past government gave many industry participants industry, and she and her husband moved to couple of years. The aim was to identify the opportunity to meet and work with senior Rarotonga 15 years ago to work in our family likely problems caused by the COVID-19 officials, developing mutual understanding businesses, managing our first resort. She pandemic, before they occurred...and then and trust. became a shareholder and business partner, to design and implement solutions. The lockdown requirements forced us and under her management the business has The success of this initial working group was to use new ways of working, including done really well. one of the real positives to come out of the Zoom meetings and working from home Sue was recognised by her industry peers, and COVID-19 crisis. An excellent example of offices. Some of these initiatives will was elected to consecutive terms as president industry and government collaborating to continue, meaning less travel and better of the Cook Islands Tourism Council. jointly deal with urgent issues. communications. Her death, aged only 52, came during the And this biosecurity work group was just And from a national perspective, it seems time when Cook Islands and New Zealand’s the start. The remit for the group really that, apart from tourism, immagration and borders have been closed. So the funeral finished once the vehicles were certified for the international education services, the arrangements in both Rarotonga and New biosecurity and the vehicles were cleared from economy may experience a “V-shaped” Zealand were necessarily complicated and the wharves. But the COVID-19 lockdown recession: a deep, quick slowdown, with a protracted. requirements meant that “pinch-points” and steep, quicker-than expected recovery. Let’s Huge turnouts at her funerals in Rarotonga, bottle necks formed all the way down the hope so. including attendance by the Cook Islands supply chain. As we observe how other countries are Prime Minister and his wife, and New We convened another group, made up of the still struggling to deal with the ravages of Zealand’s High Commissioner. And hundreds various industry sectors (logistics, transport, COVID-19 and the economic turmoil that attended her funeral in Hamilton this week, inspection and retail) and NZTA and MoT ensues, we can indeed see the silver lining including members of the motor industry representatives. Once again, we were able in what has been a pretty dark cloud. who had experienced and enjoyed Sue’s to identify areas where there would be hospitality and friendliness in Rarotonga. problems, delays and congestion.

26 New Zealand JULY 2020 RESPONDING TO RECESSION VALE: SUE FLETCHER-VEA BY GREIG EPPS

The current predictions on just how much New Zealand’s economy will shrink as a result of Covid-19 range from 5 percent to as much as 20 percent. Those within the auto sector, report an appreciable ‘bounce’, with customers catching up on repairs, maintenance and even purchases of new vehicles in May and June.

TA information suggests This time – a pandemic forced a global repairers, both collision lockdown, borders closed, consumer Mand mechanical, may do spending was squeezed to a trickle. And reasonably well during the recession the pandemic is far from over. – people tend to hang on to their Nevertheless, many of the recovery vehicles longer and need to keep them mechanisms used previously are valid running and roadworthy. Dealerships today. Governments need to spend money however are holding their breath. –to support and reinvigorate economic While the May and June sales figures activity. Businesses need to reduce are encouraging, they are still well operating costs and consider diversifying short of last year’s sales. It’s too their revenue streams. early to tell whether new buying The businesses that recover best are patterns are being laid down. These the ones who could draw on built-up GREIG EPPS will reveal themselves if the economy reserves and those that were already ADVOCACY & STRATEGY MANAGER AT MTA flattens out in a few months time, innovating (doing things differently or possibly around November when the offering new products or services). service stations are down generally, but wage subsidy extension has well and That said, in past recessions consumers many dealerships are reporting good sales truly run out. became thriftier, more discerning in (although most are still short on pre-Covid To help inform ourselves, MTA their purchases. There were reductions levels). commissioned an economist to in spending on “durables”, such as cars. So, it seems that things could be a lot prepare a report on past recessionary Interestingly, it seems in the current worse. But it is clear there is no room for periods and how governments, situation that consumers are less gun- complacency. businesses, and consumers had shy. Spending on many durables has held responded. steady in NZ and there are predictions that This is a time to work ON your business, It was fascinating to look back, and the unemployment impact may be less not just in it. The smart operators will good to be reminded, that things did than first feared. be cutting costs where they can, finding ways to diversity and bring in additional return to ‘normal’. Most MTA businesses are back up revenue, identifying new patterns of But it was also clear that this Covid-19 and running – with mixed levels of spending, and handling a lot more of their situation is not comparable. Past profitability. Those reliant on tourism are customer interactions online. recessions have generally been linked obviously hard hit, rural areas seem to be to a fault within the financial system. doing better, repairers are OK generally,

JULY 2020 New Zealand 27 DIGITAL - THE KEY TO DRIVING SALES

Car buyers are looking online now more than ever, and this is likely to be the “next normal” moving forward. The impact of COVID-19 on consumer behaviour has been significant in terms of car buying. It has encouraged even more people to browse online and looks like it’s going to accelerate online buying, with the likes of Carvana and Vroom in the USA seeing their share prices skyrocket recently. JAMES SEARLE So it’s important dealerships move with this change and master the art of digital. GENERAL MANAGER DPL INSURANCE LIMITED

he good news is this doesn’t have HOW TO CREATE GREAT VEHICLE LISTINGS HOW TO BE RESPONSIVE TO CUSTOMERS’ to be scary - there are many simple There are also lots of good examples of NEEDS Tways to optimise your existing online great vehicle listings already online. Look at We live in a fast-paced world, where presence and use technology to get your them and: people expect rapid responses and demand business ahead. • Think about the type of person who’s likely high standards from even the smallest of Dealerships that take the time to do this to be interested in buying the vehicle, businesses. So make sure you: now, can build a lasting advantage over eg, are they a young mum, a builder or a • Ensure your team devotes time to frequently their competitors. lawyer? Once you know who you’re writing monitoring emails and social platforms, so you can respond to messages quickly. HOW TO IMPROVE YOUR WEBSITE for, you can write your copy in a way that will appeal to them. Combining speed with high quality One of the best ways is to look at other responses, empathy and engagement • Remember you’re not selling a “car”, you’re businesses’ websites you admire and copy with the customer will translate into great selling the “dream” – the lifestyle someone what they do. There is no point re-inventing experiences. the wheel - There are some fantastic could live if they buy the car. Have you ever • Customise your responses to customers. Say examples out there that show how you can noticed how much personal detail private Bob, a builder calls … If, within an hour, you simply: sellers put in their ads? They don’t just talk about the vehicle’s features, they talk send him a video of the ideal ute, showing • Create a look and feel that will appeal to about how they’ve used it and what they its features and explaining how they would your customer base, eg, if you’re targeting love about it. If you talk about the benefits benefit him. He’ll see you’ve taken on board young people, make it slick and fun. And of owning the car, people can start to his particular needs and circumstances, and always ensure the basics are spot on: It’s emotionally connect with it before they’ve therefore will be much more likely to take the next step in the sales process with you. easy to find key information; links work; even seen it. there aren’t any typos; and people can • Offer safe and contactless engagement. • Use Microsoft Word to draft your vehicle simply see how to contact you to buy their With your website and online listings, listing in. Once you’re happy with it, you next car. you’re already providing a way for people can copy and paste the information into an to browse from a distance. You can also • Visually introduce your business. Adding online listing without worrying you’ll get partner with F&I companies like Autosure, photos of your premises and your team is a interrupted part way through. Then keep who’s Generator sales system allows great way to do this. And if you add videos that Word document as a template, which 24/7 contactless transactions, that help too, that’s an even more interactive way new will speed up the process for future listings. you provide valuable protection for your customers can get to know you. Talking about Plus, you won’t have any typos, as Word customers. who they’ll meet when they come and why checks the spelling and grammar for you. they’ll enjoy buying from your dealership, Shifting customer behaviours accelerated by • Talk about why it’s a good idea to buy from will make customers more likely to contact COVID-19 have led to nearly all businesses a dealer rather than a private seller. Ask your you and feel confident about what to expect becoming more digital. You can quickly Autosure account manager for a copy of our when they visit. and simply build your digital capabilities. dealer advertisement. This does a great job Demonstrating that you understand what • Mention the great F&I solutions you can of outlining the benefits to customers and matters most to your customers digitally provide. This will make customers more is easy to add to the photos in your vehicle and tailoring your solutions to meet their open to discussing these products when listings. It’s also good to talk about why expectations, will increase their customer they’ve decided which vehicle to buy. people should buy from your dealership in experience and drive your sales. For example, have a paragraph about the particular, For example, you could mention To discuss this topic further, talk with your value of Mechanical Breakdown Insurance what a great experience they’ll have because Autosure account manager. that links to the Autosure website for of your friendly, knowledgeable staff and more information. great range of vehicles.

28 New Zealand JULY 2020 We’ve got New Zealand covered!

And we’re here to help you provide the best insurance protection for your customers.

INSURANCE

• Mechanical Breakdown • Payment Protection • Loan Equity • Motor Vehicle

If you’d like to become an Autosure Approved Dealer, contact us to find out more.

www.autosure.co.nz | 0800 267 873 Jaques Gray

ith the post lockdown environment that we find Wourselves in, we are all JAQUES GRAY in a mad rush to grab our share of the market from the inflated spending bubble that has been created. Yes, sales are buoyant, but have we forgotten some the basic processes which we should religiously follow to maximise our potential income. You may think it’s forgivable to have poor F&I turnover to your business manager when we have more customers than usual, but letting ourselves fall into this bad habit will only make it harder to climb out of when we need to address any lack of process, when the number of customers may reduce over the coming months. We should get back to basics and remember to maximise all income streams available to the dealership, not just rely on the original profit offered from the sale of a vehicle when sales are plentiful. The second sale, derived from F&I is just as important to the profitability of your dealership, and to customer retention. Now if there is any other reason that is hindering the process, other than your sales team have been just too busy (reducing F&I income through the lack of turnover), you will need to drill down and address what else may be the issue. The feedback that I get from dealerships regarding F&I sales is mainly from business managers saying that their performance could be better if they could just get 100% turnover (T/O) from their sales team. So, we’ll sit down and review their log to see where the issues lie. NB: It’s important, firstly, to ensure the business manager’cs daily F&I Log records the salespersons name (who sold the vehicle) and whether or not the customer was T/O to the business manager (at the correct time). This generally identifies where the issue lies. If poor T/O is evident in your dealership and T/O performance starts to fall it can generally be attributable to one of two issues:- i) Unavailability of the business manager due to vehicles sold off-site, a deal being completed on-line, over the phone, or the business manager being away from the dealership (for whatever reason – out to lunch, annual leave, tied up with other customers,etc). ii) Poor relationships or a sense of mis-trust between the salesperson and the business manager, where the salesperson has a concern that the business manager will sell their customer something they may not want or may

30 New Zealand JULY 2020 GREY FORD TO JOIN TEAM HUTCHINSON

Christchurch’s Team Hutchinson Ford has acquired Grey Ford. The Greymouth dealer will become a satellite branch for Hutchinson, allowing the smaller dealership to leverage the support of the larger Christchurch operation. The transfer went ahead on July 1, ...CONTINUED FROM PREVIOUS PAGE and all current staff are being kept handle their customer in a way that may The first thing we all need to realise is on. jeopardise the deal or the salespersons that the customer does not belong to the Grey Ford has been operating in relationship with their customer. salesperson. The customer is a customer Greymouth since 1922 and has of the dealership and we all owe it to the most recently (since 2006) been UNAVAILABILITY OF THE BUSINESS MANAGER dealership to ensure the customer is treated owned and operated by Neil This is an issue that should be openly in a professional manner and in line with and Ann Smith. Ashburton Ford discussed at weekly sales meetings the company policy for handling customers. dealer Peter Gluyas was also a (communication in any business is T/O is a vital part of the sales process shareholder. important and yes, the business manager to ensure customers are handled in a The branch model aligns with should attend sales meetings). professional manner and are provided Ford’s hub and spoke market There will always be the odd occasion with the right advice concerning the representation strategy to drive when the business manager is not financing of motor vehicles and the sale scale, efficiency and sustainability. available (and not all dealerships have of insurance products. “We are really excited about the the luxury of back-up staff), so the reason These products are designed to provide:- opportunity and pleased to confirm should be communicated to the sales team i) Protection for both the dealership and that the strong team at Grey Ford in advance. the customer to provide cover against the will all be offered employment Any deals completed on-line or via phone happening of insured events, and under the new ownership,” John , dealer principal of should still be introduced to the business ii) Additional profitability for the dealership Hutchinson manager as early as possible. to provide a sustainable future for the Team Hutchinson Ford says. I recommend you use one golden hour as business Having been work-in-progress for some time, the company says the the target here, after an hour a customer It is through a disciplined process of T/O change in ownership and operating has usually contacted their own preferred that we can ensure customers are handled structure is not a consequence of vehicle financier if it is not a true cash professionally and receive the best advice sale. selecting the right vehicle and protecting COVID but “represents the desired outcome of all stakeholders”. For sales conducted on site, if the business their purchase. Ford NZ managing director Simon manager is tied up with customers the If T/O is an issue in your dealership, call Rutherford says he would like to salesperson should settle the customers me now and let me show you how we acknowledge the stewardship of down with a tea/coffee, communicate with can assist with an after-hours in-house the business manager so they can fast- workshop that brings the sales team the brand in Greymouth under Neil track things and assist them by ensuring and business manager together, helps and Ann’s tenure and wish them the Write-Up Sheet is completed in full and the sales team understand and embed well for the future. a copy of the customers driver’s license is the process and ensures the discipline of on hand. T/O is adhered to for the benefit of the customer and the dealership as a whole – RELATIONSHIPS/TRUST and when the dealership benefits we all Communication is the key to identifying benefit. and resolving any conflict between sales and F&I.

JULY 2020 New Zealand 31 TURNERS CONFIRMS ‘SUPER-SITE’ EXIT

Turners Automotive Group has confirmed an executive Todd Hunter. “We set about at Insurance revenue has reduced due to the 11% increase in profits to $26 million for the beginning of FY20 to really push for one-off impact of property sale in FY19 the year to the end of March. organic growth. We have achieved that ($3m) and the further risk optimisation it is That means the results are virtually in 3 out of our 4 businesses and were on running through the portfolio. untouched by the lockdown, though track to achieve this with 4 out of 4 until Interestingly the report notes that during the company notes it is hard to provide Covid-19 hit.” the Global Financial Crisis the number of forward forecasts at the moment due to In its result report, the company says its dealers reduced by 15% – and suggests we the volatile market. vehicle retailing operation has continued could see the same now, generating market At the same time it has confirmed it will to grow retail market share and it has share growth. leave its long-time home at Penrose, known increased the numbers of “owned While previous dividends had been as its ‘Supersite’, and will instead focus on inventory” sold by 8% year-on-year but delayed by concern over the length of the its wider-spread retail sites. a reduction in consignment business and lockdown, the board is now confident impact of Covid-19 has resulted in a small “We are really pleased with the growth enough to add 6 cents to its dividend for decrease in revenue. in underlying profits over FY20, despite the year, taking it up to 14 cents a share. the early impact of Covid-19 in the last Finance revenues have grown as a result of 6 weeks of the financial year,” says chief directing Turners origination into Oxford.

GENEVA PROFIT DOWN 24%

Two poor performing units and COVID-19 The division also booked $625,000 of the period, 1% improvement from prior have hit the fortunes of finance company provisions for the impacts of COVID-19. period. The poor result was directly linked to the cost structure that was inherited Geneva for the year to the end of March. Its protection business continues to be when the business was purchased. The group pre-tax profit of $4.1m was profitable. Quest Insurance Group Limited down 24% on last year. Profits for the (Quest) reported profit of $1.7m was 30% During the COVID-19 lockdown period, core lending business – which includes up on prior period. Premiums written lending fell 90% and insurance premium vehicles – recorded a 24% fall in profit to continue to grow and totaled $13.7m sales dropped 81%. $4.2 million. for the year (up 26%). The Quest direct “May and June recovered strongly and channel had the biggest growth (up “Over the last 18 -24 months, this market we are well positioned to recover the 58%), followed by the Janssens Channel segment has seen an influx of cash, a shortfalls suffered in March/April. Cash (up 38%). reduction in margins and an easing of collections from our receivables ledgers asset quality standards,” the statement Federal Pacific Tonga (60% owned by the have returned to pre COVID-19 levels says. “GFSL’s poor performance in the group) reported a pre-tax profit of $1.4m, and while we are assisting customers current financial year reflects the profit up 21.7% on the previous year. The with repayment plans as required, to impact of static lending volumes and Group’s share amounting to $0.8m pre- date we have not seen a large number lower yields as focus was on maintaining tax profit ($0.6m after tax). This operation of customers seeking assistance. Despite asset quality over lending volumes.” is managed in Tonga and is performing this, there remains a level of uncertainty within the board’s expectations. “During the latter part of the March 2020 on the full impact of COVID-19.” year, structural changes were made to the On the negative side, Stellar Collections operation, including a shift to increase had a difficult year with a consolidated the tier 1 mix in our lending business. profit of $0.1m, down $0.3m on previous These changes saw an immediate lending year. lift to 24% above last year (previously up Geneva Capital, which lends to businesses 7%).” on invoices, reported a loss of $0.6m for

32 New Zealand JULY 2020 SHOWROOM

New Vehicle Industry and Product News

MITSUBISHI NZ SETS PRICING OF NEW EXPRESS VAN

Mitsubishi Motors New Zealand (MMNZ) is confirming the release date and pricing of its first new van offering in seven years. The Express is due to land in September 2020 with the 1.6-litre six-speed manual transmission model priced at $47,990 and the 2.0-litre six-speed dual clutch automatic transmission priced at $52,990. The van provides 5.2m3 capacity and up to 1150kg payload and follows the popular L300 which sold 38,806 units from 1980 to 2015. “We are thrilled to be adding the Express to our line-up, and to be able to provide a compelling new option for light commercial operators,” MMNZ marketing and corporate affairs head Reece Congdon says. “This highly specced van is a different proposition and a worthy successor to our popular L300 model. “We strongly believe that operators looking for function and flexibility, at exceptional value, will welcome the opportunity to get the Express van working for their bottom line. “Backed by our 50-strong dealer network and factory-trained technicians, we expect interest to be high,” Congdon says.

HYUNDAI NEW ZEALAND CONFIRMS PALISADE SUV

Hyundai New Zealand has confirmed it is bringing the large Palisade SUV to market to sit at the top of its SUV model range. The Hyundai Palisade is slightly larger than the Santa Fe, better matching up in dimensions to the Mazda CX-9 and Toyota Highlander that compete in the large family SUV space. Palisade offers a host of technology features including a 10-inch navigation display, wireless charging, seven USB outlets, second-row ventilated seats, shift-by-wire and innovative roof-based diffuser vents. It also boasts 16 cup-holders and the latest safety systems.

JULY 2020 New Zealand 33 SHOWROOM

New Vehicle Industry and Product News

VOLKSWAGEN CROSSES THE TEE

Volkwagen passenger car importer European Motor Distributors says the arrival of the compact T-Cross adds a much needed market competitor to its SUV line-up. Robert Barry reports his first impressions of the new entrant.

Volkswagen New Zealand (VWNZ) Ebbett Volkswagen are building a new LIFE AND STYLE passenger car general manager Greg Leet showroom in Te Rapa which is expected The familiar Volkswagen specification says the arrival of the T-Cross couldn’t to be operational in the third quarter. names of Comfortline and Highline have come at a better time, as the compact The arrival of the T-Cross will be followed been consigned to history and replaced SUV segment now accounts for 20% of later this year by the return of the by the more contemporary designations new car sales. sportier and more expensive T-Roc SUV, of Life and Style in addition to the sporty and upscale R-line variants. Leet says he expects more than 80 new as well as the refreshed Tiguan in the first T-Cross sales in June and believes that quarter of 2021. There are three models in the T-Cross 350 to 400 units will find new buyers by family, the 1-litre 85kW TSI Life priced But don’t think for a moment that the end of calendar 2020. from $34,240, the 1-litre 85kW TSI Volkswagen will become a solely SUV offer He also says post COVID-19 lockdown Style priced from $38,490, and the in the passenger car space. Leet admits the market has been very busy for 1.5-litre 110kW TSI R-line priced from that the forthcoming Golf 8 in Q1 2020 Volkswagen, corporate sales have taken $43,490. will no longer be a volume leader, it will off and dealerships are reporting that In addition the local market launch service department bookings have been likely be more focused on the GTI and R of the T-Cross will see 43 units of maxed out. performance variants. the 1-litre 85kW 1st Edition models The new Tristram Volkswagen West But Leet says that both the Golf and the available with the black or orange style Auckland dealership which opened Polo hatchback will remain on the VWNZ packs, priced from $39,990. shortly before level 4 is now operating at price list, and the importer will fight to The primary local market competitor full capacity. retain them. to the T-Cross is the Kia Seltos, which

34 New Zealand JULY 2020 SHOWROOM

New Vehicle Industry and Product News

NEW-LOOK MARKETING TEAM FOR VOLKSWAGEN

Former Volkswagen Passenger Car marketing manager Sara Pastor- Ruprichova has been promoted to lead a centralised customer engagement team for the multiple EMD brands. Stepping into her shoes is Helena Shultz who has held the role of marketing and communications executive for the VW passenger car brand at EMD for the past three years. Prior to that Shultz worked in various marketing related functions at Maori TV. Shannon Pentecost, who joined the brand working on its digital, events and public relations efforts a year has a five-model line-up ranging in This particular 1st Edition T-Cross is ago in a temporary capacity, is the recommended retail price from $27,990 distinguished by the orange Koln 18- new marketing communications to $46,990. inch alloy wheels, orange mirror caps, executive for the Volkswagen and Diag fabric sports front seats, orange Aimed at small families, urban dwellers Audi passenger brands. and tech savvy buyers, the T-Cross is decorative inserts in the cabin, and a “As we work towards creating a loaded with safety and driver assistance 300w Beats premium sound system. compelling digital eco system, features, as well as an infotainment The orange pack may not be everyone’s where the customer can get system boasting Apple CarPlay and cup of tea, but it doesn’t detract everything they need from our Android Auto, and all models feature from the pleasant driving experience brand in a simple and easy to wireless charging capability as well as provided by the three-cylinder access solution, we have identified four USB outlets. turbocharged 1-litre petrol engine, the requirement for an EMD group mated to a seven-speed DSG automatic. AEB front assist, lane assistance, cyclist centralised customer engagement and pedestrian monitoring, blind spot It has a distinctive three-cylinder growl team,” Greg Leet says. monitoring keyless entry and start and during brisk acceleration but it’s a quiet “The team is focusing solely on the rear cross traffic alert as well as six and refined drive, and the steering very technically complex online airbags are all standard T-Cross features. feels sharp and responsive too. customer journey.” More importantly for a practical SUV, the Nippy, nimble, but most of all, “We’d been thinking about rear seats have a 140mm fore and aft comfortable, the T-Cross meets the the best use of our marketing adjustment, providing 385L to 455L of brief of being an urban focussed SUV, resources here at EMD for some space with the seats in situ, or 1281L of it also offers good vision from the months, then a pandemic arrived space when folded flat. driver’s seat, plus its dimensions and that interrupted the process for a tech make parking easy. Selling 400 few weeks,” Leet says. DRIVING IMPRESSIONS units in 2020 doesn’t seem optimistic. AutoTalk spent a couple of days at the wheel of a 1st Edition T-Cross in black metallic paint with the orange package pictured here.

JULY 2020 New Zealand 35 SHOWROOM

New Vehicle Industry and Product News SKODA’S MARKET AMBITION BY ROBERT BARRY

Skoda New Zealand launched the all-new Scala hatchback to market in September 2019 as an affordable European alternative to price-pointed mass market models such as the Toyota Corolla, Kia Cerato and Ford Focus.

ccording to Skoda, Scala is a a three-cylinder, it was only when to offer LED technology as standard for Latin word meaning stairs, giving the Scala a bit of welly, did the the head lights and tail lamps. ladder, or scale, meaning that characteristic three-pot hum makes A But the elephant in the room needs the Czech brand is upping its game in itself known. Skoda quotes combined to be addressed, and that is adaptive the small hatchback segment. fuel consumption of 5.3L/100km. cruise control on the Scala Ambition Skoda New Zealand general manager For the price point the Ambition is very is an extra cost option of $900. It’s a Rodney Gillard says the Scala hatchback well specified. It’s got keyless stop/ standard feature in the competitors is focused on an urban audience. start; leather-bound multifunction and it should be here. “Life is getting busier and more steering wheel, lane assist and front complicated as the urban population assist with city emergency brake as It was the one sole niggle in an grows,” Gillard says. “Skoda cars are standard. otherwise very competent car. It’s very built to make life a little bit easier In addition, there is a reversing well constructed, the Scala retains that for their owners, and the Scala is the camera and rear parking sensors, hewn from stone quality which I have manifestation of this promise Android Auto or Apple Car Play phone found in previous Skoda vehicles. The entry-level Scala Ambition retails mirroring functions, LED headlamps The interior is defined by high-quality from $29,990 plus on-road charges, with LED daytime running lights plastics and black cloth upholstery, the while the Corolla GX has a Toyota and fog lamps, and manual air- seats are very comfortable and easily Driveaway Price of $29,990. Kia Motors conditioning. adjusted, while the switchgear and currently has a special offer on the The Scala is the first Skoda model to driver ergonomics are of the usual high Cerato SX of $25,990 plus on road costs, use the Volkswagen Group’s MQB-A0 standard. while the Ford Focus Trend offers a platform, and it offers a spacious recommended retail price of $31,990 interior thanks to a 2649mm wheelbase Skoda’s design has come such a long plus on road costs. which provides 73mm of rear knee way, the Scala has a very crisp look and The front-wheel drive Rally Green room and 982mm of rear head room. feel, the three-quarter profile is very Scala Ambition is powered by a three- The boot will swallow 467 litres of similar to the Audi A3, but the design cylinder 1-litre turbocharged petrol luggage with the rear seats in situ, and treatment of the glass tailgate with the engine matched to a seven-speed up to 1410 litres with the rear seats Skoda lettering across it rather than the automatic. folded down. brand logo was a unique touch. The engine provides 85 kilowatts The manufacturer says by offering a high- The Scala offers Golf-like quality but of power and 200 Newton metres strength body and a wealth of assistance at a more affordable price. Will it be of torque, which provides ample systems previously only available in enough to convert people from the performance for this urban-focused higher segment, the Scala is one of the more mass market competitors will hatchback. safest vehicles in its segment. It is the remain to be seen. On first acquaintance the engine first compact Skoda to be equipped with was so quiet, I didn’t realise it was lane assist and front assist, and the first

36 New Zealand JULY 2020 THE BOUNCE - USED IMPORTS IN STRONG RECOVERY Importing Cars. Made Easy.

USED PASSENGER MAKES JUNE 2020 Your trusted vehicle import MAKES JUNE’20 JUNE’19 Movement % Market Used import registrations showed a Change Share dramatic recovery in June, not just agent TOYOTA 2786 2472 12.7 23.3 getting back to the same level as last NISSAN 2083 2322 -10.3 17.4 For more than 30 years year but rising significantly. MAZDA 1922 1755 9.5 16.1 HONDA 1127 1250 -9.8 9.4 Passenger registrations for the month rising up the charts to 18th on 185 SUBARU 866 648 33.6 7.2 were up 7% over the same month units. BMW 537 377 Up 2 42.4 4.5 last year to 11,953 from 11,171 MITSUBISHI 486 537 -9.5 4.1 units. The top spot is occupied this month SUZUKI 475 596 Down 2 -20.3 4.0 Used registrations for the year remain by the Mazda Axela on 647 units, VOLKSWAGEN 433 368 17.7 3.6 down 6%, though considering followed in second by the Toyota AUDI 295 184 60.3 2.5 the loss of nearly two months of Corolla on 526. MERCEDES-BENZ 184 121 52.1 1.5 open trading that is somewhat of a The Honda Fit took third spot on 470, LEXUS 183 110 66.4 1.5 miracle. followed by the Toyota Aqua on 416 FORD 86 53 Up 1 62.3 0.7 The used import commercial recovery and the Suzuki Swift on 387. VOLVO 83 56 Down 1 48.2 0.7 was even more impressive, up 12% Toyota topped the commercial chairs MINI 44 20 Up 4 120.0 0.4 to 960 units from 857 this time last on 447 units, up 14% from last year JAGUAR 42 26 Up 1 61.5 0.4 year. for a 46.6% share. HOLDEN 40 32 Down 1 25.0 0.3 Toyota was the most popular Nissan was second on 230, up 8% for 39 20 Up 2 95.0 0.3 JEEP passenger brand, up 12.7% to 2786 24% of the market, while Mazda took LAND ROVER 38 13 Up 5 192.3 0.3 from 2472, giving it 23.3% of the third on 54, up 50% for a 5.6% stake. CHEVROLET 35 39 Down 5 -10.3 0.3 market. Truck brands and OTHER 169 172 -1.7 1.4 Isuzu Hino Nissan took second on 2083, down came next with 41 and 39 units TOTAL 11953 11171 7.0 100.0 10.3% for a 17.4% share, while respectively. Mazda made third on 1922, up 9.5% The Toyota Hiace was by far the most USED COMMERCIAL MAKES JUNE 2020 for a 16.1% stake. popular commercial vehicle with a % Market Honda was next, down 9.8% to MAKES June’20 JUNE’19 Movement Change Share 331 unit haul. 1127 for a 9.4% share, while Subaru TOYOTA 447 392 14.0 46.6 The Nissan NV200 took second on was fifth on 866, up 33.6% for 7.2% NISSAN 230 213 8.0 24.0 63, followed by its big brother, the of the market. MAZDA 54 36 Up 1 50.0 5.6 Caravan, on 59. Interestingly the European brands ISUZU 41 42 Down 2 -2.4 4.3 The Toyota Regius - a variant of the made big gains - BMW up 42.4%, HINO 39 31 25.8 4.1 Hiace - followed on 54, with the Audi up 60.3%, Volkswagen up FORD 30 28 Up 1 7.1 3.1 Nissan NV350 fifth on 46 units. 17.7% and Mercedes up 52.1%. MITSUBISHI 27 31 Down 1 -12.9 2.8 SALES UP IN NEW PLYMOUTH CHEVROLET 12 11 Up 1 9.1 1.3 This was expected due to the easier availability of cheap ESC-compliant Peter Wilson at Superior Cars in New HOLDEN 12 10 Up 1 20.0 1.3 stock available in Japan. Plymouth says sales have bounced FIAT 11 13 Down 2 -15.4 1.1 back after the COVID-19 lockdown. OTHER 57 50 14.0 5.9 That pattern is echoed in the model TOTAL 960 857 12.0 100.0 charts, with the BMW 3 series “It’s the middle of winter and you

The new app from Nichibo Buy anywhere, any time.

www.nichibojapan.com

JULY 2020 New Zealand 37 Fast Loan Approvals Flexible Repayments Personal Service

Get in contact today 0800 367 233

USED PASSNEGER MODELS JUNE 2020 MAKES JUNE’20 MODEL JUN’19 MAZDA AXELA 647 MAZDA AXELA 574 TOYOTA COROLLA 526 HONDA FIT 524 HONDA FIT 470 SUZUKI SWIFT 491 TOYOTA AQUA 416 NISSAN TIIDA 456 can’t expect too much, but everyone is Zealand at the moment. Everyone SUZUKI SWIFT 387 TOYOTA COROLLA 416 positive.” seems to be a bit more positive. I MAZDA DEMIO 376 MAZDA DEMIO 392 He says that before the lockdown, sales don’t think NZ has always been very good with unity but it’s quite good at TOYOTA PRIUS 348 TOYOTA PRIUS 336 were average, but “it’s come back and a lot of people are shopping locally the moment. It’s really nice.” SUBARU IMPREZA 315 MITSUBISHI OUTLANDER 302 and we’re giving them a good deal. GOOD INQUIRY ONLINE AND FOOT NISSAN TIIDA 308 NISSAN LEAF 290 “We’re selling across the board; we’re TRAFFIC SUBARU LEGACY 287 TOYOTA AQUA 270 doing more petrol-saver cars, but Hutt City Autoworld in Lower Hutt is MITSUBISHI OUTLANDER 272 TOYOTA WISH 256 we have sold a few V8s – sold half a getting good customer inquiry – both VOLKSWAGEN GOLF 269 MAZDA ATENZA 254 dozen.” foot traffic and online – and is selling MAZDA ATENZA 255 VOLKSWAGEN GOLF 252 Wilson says a lot of customers are cars. looking for something economical. NISSAN X-TRAIL 225 NISSAN DUALIS 251 “Sales levels are up but to put that “We’ve had a good run with that sort into context I think we’ve had three NISSAN LEAF 212 SUBARU LEGACY 251 of stuff – hybrids or small ccs.” months’ worth of sales c ompacted NISSAN NOTE 203 TOYOTA VITZ 235 He’s leaving electric cars alone. “I into eight or nine weeks,” says co- MAZDA PREMACY 197 SUBARU IMPREZA 224 think the whole thing with electric owner Doug Breden. BMW 3 SERIES 185 NISSAN NOTE 197 cars is there are not too many “If you took May and June and divided (battery-charging) power points NISSAN DUALIS 185 NISSAN X-TRAIL 184 them by three months, I reckon and at the moment people can’t be we’d be where we should be for the TOYOTA WISH 184 HONDA STREAM 156 bothered with them. With a hybrid we quarter. can offer economy and convenience.” “We’ve had a reasonably busy eight USED COMMERCIAL MODELS JUNE 2020 Wilson says Superior Cars is getting a weeks but I’m not sitting here saying lot of online inquiry. “We’re tending I’m ahead of the eight-ball. JUN’20 JUN’19 to get more local people online now “When NZ first came to Level 3, I TOYOTA HIACE 331 TOYOTA HIACE 293 (the company also sells nationally). would have said small cars, second NISSAN NV200 63 NISSAN CARAVAN 62 “We now have better numbers locally, cars were popular but as time has NISSAN CARAVAN 59 NISSAN NV200 50 no doubt about that. We give them a gone on, I very much think it’s good deal and they don’t have to go TOYOTA REGIUS 54 NISSAN NV350 50 business as usual.” to Auckland or Wellington or wherever Breden has been pleasantly surprised NISSAN NV350 46 ISUZU ELF 32 to buy a car.” by how well sales have come back. MAZDA BONGO 41 TOYOTA DYNA 32 He says he hopes people stay positive “It’s better than I expected, yes. The NISSAN VANETTE 34 MAZDA BONGO 28 even though there have been some first eight to 10 weeks back to work HINO DUTRO 31 TOYOTA REGIUS 28 new cases of COVID-19 infection. and being open. we’re not seeing so TOYOTA DYNA 26 NISSAN VANETTE 22 “So long as that is contained it makes much of the doom and gloom. We’re you feel good about being in New ahead of where I thought we would ISUZU ELF 25 HINO DUTRO 18

Fast Loan Approvals, Personal Service & Flexible Repayments. Our personal service & ﬂexibility sets us apart. Get in contact today Ph - 0800 367 233

38 New Zealand JULY 2020 be on all fronts. The razor blades are well Breden says the general feeling is good. Fast Loan Approvals locked in the safe.” “No-one’s negative. Here it’s seven Flexible Repayments Breden says the general feeling is quite degrees and miserable but people coming Personal Service good. “No-one’s negative. Here it’s seven in are jovial and happy,” he tells Auto Talk degrees and miserable but people coming on June 30. Get in contact today 0800 367 233 in are jovial and happy,” he tells Auto Talk He says as NZ moves into July and August on June 30. and in an election year sales are usually He says as NZ moves into July and August down in the Wellington region where a lot and in an election year car sales are of public servants live, it’s hard to make usually down in the Wellington region predictions for the next few months. where a lot of public servants live, it’s “I would like to say we would be normal, hard to make predictions for the next few but a few factors make it a little hard to months. pick, but we’ve got new stock coming and “I would like to say we would be normal, that’s a good thing.” but a few factors make it a little hard to pick. We’ve got new stock coming and that’s a good thing.”

AN FEB MAR APR MAY UN UL AUG SEP OCT NOV DEC

Fast Loan Approvals, Personal Service & Flexible Repayments. Our personal service & ﬂexibility sets us apart. Get in contact today Ph - 0800 367 233

JULY 2020 New Zealand 39 NEW VEHICLES NEW SALES ‘STEADY BUT COMPETITIVE FINANCE BROUGHT TO YOU BY: WEAKER’

New vehicle sales were down 17.5% in “The first six months of the year has been a June, as the recovery from lockdown and year to two quarters. The first quarter saw resulting economic downturn continue. the sales of 32,833 new vehicles while the Registrations totalled 11,514 vehicles during April to June quarter has seen just 20,866 June, down 2438 on this time last year. new registrations, a reduction of 11,967 units for the quarter.” “Year to date the market is down 29.1% in a year that is heavily affected He says the month of June reflects a steady by the Covid-19 pandemic,” Motor but weaker market compared to 2019. Industry Association chief executive David NEW PASSENGER MAKES JUNE 2020 Crawford says. % Market MAKE JUNE’20 JUNE’19 MOVEMENT Change Share NEW PASSENGER MODELS JUNE 2020

% TOYOTA 920 973 Up 1 -5.4 22.4 MAKE JUNE’20 JUNE’19 MOVEMENT Change Market Share

FORD 714 1148 Down 1 -37.8 17.4 TOYOTA 920 973 Up 1 -5.4 22.4

FORD 714 1148 Down 1 -37.8 17.4 HOLDEN 484 682 -29.0 11.8

HOLDEN 484 682 -29.0 11.8 MITSUBISHI 390 530 -26.4 9.5

MITSUBISHI 390 530 -26.4 9.5 ISUZU 270 286 Up 1 -5.6 6.6

ISUZU 270 286 Up 1 -5.6 6.6 NISSAN 251 364 Down 1 -31.0 6.1

NISSAN 251 364 Down 1 -31.0 6.1 MAZDA 170 199 -14.6 4.1 MAZDA 170 199 -14.6 4.1 MERCEDES-BENZ 148 86 Up 3 72.1 3.6 MERCEDES-BENZ 148 86 Up 3 72.1 3.6 LDV 122 154 -20.8 3.0 LDV 122 154 -20.8 3.0

VOLKSWAGEN 101 164 Down 1 -38.4 2.5 VOLKSWAGEN 101 164 Down 1 -38.4 2.5

OTHER 533 617 -13.6 13.0 OTHER 533 617 -13.6 13.0

TOTAL 4103 5203 -21.1 100.0 TOTAL 4103 5203 -21.1 100.0

UDC has money to lend. Lots of money. Talk to us today about stock funding options for your dealership.

UDC Finance Limited Ph 0800 500 832 or visit www.udc.co.nz lending criteria applies.

40 New Zealand JULY 2020 Sales of both passenger and commercial The top selling new passenger and SUV vehicles were down, confirmation the models for the month were the Toyota NEW VEHICLES market is tightening its belt in a recession. RAV4 (403 units) followed by the Kia COMPETITIVE FINANCE Registration of 7,411 new passenger Sportage (287 units) and the Toyota BROUGHT TO YOU BY: and SUVs for June 2020 were down Corolla (271 units). 15.3%% (1337 units) on 2019 volumes, In new commercials, Toyota retained while commercial vehicle registrations the market lead with 22% market share of 4103 were down 21.2% (1101 units) (920 units) followed by Ford with 17% compared to June 2019. (714 units) and Holden third with 12% market share (485 units). The top three new models for the month of June were the Ford Ranger (641 units), The Ford Ranger retained the top spot as followed by the Toyota Hilux (595 units) the bestselling new commercial model with the Holden Colorado in third place with 16% share (641 units) followed by (482 units). the Toyota Hilux with 15% share (595 units) and the Holden Colorado in third Pure new electric vehicles continued their place with 12% market share (482 units). modest rate of monthly registrations at 131 units for June, with 54 PHEV’s and While the top three models sold for the 590 hybrid vehicles sold for the month. month were all 1 tonne utes, overall the top segments for the month of June were Toyota remains the overall market leader dominated by SUV’s. with 16% market share (1,874 units), The top spot went followed by Holden with 9% (995 units) off to the SUV medium NEW PASSENGER MODELS JUNE 2020 the back of run-out discounts and Ford in vehicles with 19% MAKE MODEL JUNE’20 MAKE MODEL JUN’19 third spot with 8% market share (868 units). share followed by Toyota was the market leader for new SUV Compact with TOYOTA RAV4 404 TOYOTA COROLLA 449 passenger and SUV registrations with 13% 18% market share KIA SPORTAGE 287 TOYOTA RAV4 405 market share (954 units) followed by Kia and the Pick Up/ TOYOTA COROLLA 271 HYUNDAI TUCSON 338 with 10% (708 units) and then Hyundai Chassis 4x4 segment with 8% market share (576 units). with 17%. SUZUKI SWIFT 227 MAZDA CX-5 287

CONTINUED ON FOLLOWING PAGE... MAZDA CX-5 216 TOYOTA LANDCRUISER PRADO 281 KIA SELTOS 202 KIA SPORTAGE 263 NEW COMMERCIAL MODELS JUNE 2020 HYUNDAI TUCSON 191 MITSUBISHI OUTLANDER 253

MAKE MODEL JUNE’20 MAKE MODEL JUN’19 NISSAN X-TRAIL 179 SUZUKI SWIFT 229 MITSUBISHI ASX 163 MITSUBISHI ASX 226 FORD RANGER 641 FORD RANGER 1055 HYUNDAI KONA 159 HYUNDAI SANTA FE 189 TOYOTA HILUX 595 TOYOTA HILUX 719 MITSUBISHI OUTLANDER 158 NISSAN QASHQAI 189 HOLDEN COLORADO 482 HOLDEN COLORADO 677 NISSAN QASHQAI 149 HYUNDAI KONA 179 MITSUBISHI TRITON 390 MITSUBISHI TRITON 530 HONDA HR-V 121 NISSAN X-TRAIL 163

TOYOTA HIACE 273 NISSAN NAVARA 364 SUZUKI VITARA 107 MAZDA MAZDA3 153

NISSAN NAVARA 251 TOYOTA HIACE 235 HOLDEN ACADIA 105 HOLDEN COMMODORE 144 MAZDA CX-30 103 SUZUKI VITARA 136 MAZDA BT-50 170 MAZDA BT-50 199 HOLDEN COMMODORE 99 TOYOTA YARIS 126 ISUZU D-MAX 163 ISUZU D-MAX 195 VOLKSWAGEN TIGUAN 99 FORD ESCAPE 114 MERCEDES-BENZ X-CLASS 87 HYUNDAI ILOAD 113 HYUNDAI SANTA FE 96 SUBARU XV 114 FORD TRANSIT 73 FORD TRANSIT 91 KIA RIO 94 HOLDEN EQUINOX 107

UDC has money to lend. Lots of money. Talk to us today about stock funding options for your dealership.

UDC Finance Limited Ph 0800 500 832 or visit www.udc.co.nz lending criteria applies.

JULY 2020 New Zealand 41 CONTINUED FROM PREVIOUS PAGE... NEW VEHICLES Burborough says Hamilton is very positive. “We’re selling across the range. SUVs are COMPETITIVE FINANCE “Housing is going nuts. We’re right beside very strong in Christchurch, and utes are still BROUGHT TO YOU BY: (major shopping centre) The Base and cars selling just as strongly as they have been. are in and out of there all day and there are “Sales are right from the very cheapest to traffic jams at the weekend. There’s a good the most expensive. We’re seeing it across positive vibe in Hamilton right now.” the whole range; everything is selling.” Burborough says there’s talk that things Barr says that luxury car sales are on a par aren’t going so well in the main centres, with previous years. but Winger’s Auckland branches have all He says he doesn’t think most sales are delivered standout performances in June. POSITIVE VIBE IN HAMILTON POST- the result of people not being able to buy LOCKDOWN “We’ve got to keep it going but the first during the lockdown. There’s a positive air about Hamilton two months back have been positive. We’re heading in that direction in every “There might be a small bit of pent-up post-COVID-19 lockdown and it’s demand but people with disposable flowing through to car sales, says Paul way everywhere we are. It’s very pleasing and I hope it stays that way. incomes who would have spent on overseas Burborough, dealer-principal of multi- holidays, we’re seeing some of that money “People don’t want to listen to the news franchise dealer Winger Hamilton. coming back into the market.” or read newspapers that tell you the “We’re going extremely well; it’s been Barr says foot traffic through the extremely positive since we got back world is about to end.” dealerships isn’t as busy as it was pre- from COVID. NEW CAR SALES STRONG IN COVID, “but the traffic we are getting, “We’re seeing good results not only in CHRISTCHURCH they’re buyers, they’re here to do business. sales but service as well, and I hope it Christchurch’s Matthew Barr, dealer “The tyre-kickers are definitely out of the continues like that.” principal at the city’s Christchurch BMW market. People coming on to the yard at the Sales are good across the dealership’s and Mini, says sales are strong across all of moment are serious about buying a car.” franchised brands. “There’s no standout, his dealerships. Barr says aftersales business is strong too. they’re all performing very well. Barr says most people in the industry are “All three workshops are very full.” “Used cars were strong in June, just about surprised by how well sales have recovered back to pre-COVID.” after the COVID-19 lockdown.

ANUARY FEBRUARY MARCH APRIL MAY UNE ULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER

UDC has money to lend. Lots of money. Talk to us today about stock funding options for your dealership.

UDC Finance Limited Ph 0800 500 832 or visit www.udc.co.nz lending criteria applies.

42 New Zealand JULY 2020 MARKET FOR SECONDHAND VEHICLES CRANKS UP

ew Zealanders are selling and Public purchases are up 24.4% to Bike sales by dealers were up 40.1% trading more local secondhand 49,141. to 482, while their purchases were up vehicles than ever before according 36.2% to 354. Transactions by the public N The statistics are in part reflective of the rose 24.8% to 2116. to the latest statistics. number of ‘ex-rental’ sale offerings from Sales of used cars - not freshly imported dealers since lockdown, though with In Trucks, dealer sales are up 38.7% to - by dealers was up 36.7% year-on- bike and truck sales also showing rises 4392, while purchases gained a modest 9.1% to 2997. Public transactions rose year last month to 22,051 units, while it may also simply reflect deferred sales 35.4% to 8620. purchases by dealers were up 20.3% to or people’s willingness to replace their 15,355. vehicle rather than holiday.

SECOND HAND JUNE 2020 SALE TYPE WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL CARS 2020 Public to Trader 267 6154 1361 95 705 101 41 522 262 131 1076 123 1262 185 111 63 2024 102 10 480 280 15355 Public to Public 2315 15076 4375 549 3244 951 478 1742 1127 533 2202 558 3648 1222 513 208 98 5770 750 284 2212 1286 49141 Trader to Public 705 7155 1995 271 1251 332 204 784 505 250 1084 256 2036 334 228 90 28 2742 289 87 938 487 22051 CARS 2019 Public to Trader 234 4883 943 183 540 117 51 436 218 120 1194 86 976 188 87 31 1754 99 1 398 222 12761 Public to Public 1926 12828 3085 617 2022 895 347 1335 1010 565 1606 464 3003 992 393 179 25 4601 479 130 1929 1060 39491 Trader to Public 535 5591 1302 247 777 387 142 568 384 212 662 196 1410 253 153 60 6 1972 168 29 689 386 16129 Cars % Change Public to Trader 14.1 26.0 44.3 -48.1 30.6 -13.7 -19.6 19.7 20.2 9.2 -9.9 43.0 29.3 -1.6 27.6 103.2 0.0 15.4 3.0 900.0 20.6 26.1 20.3 Public to Public 20.2 17.5 41.8 -11.0 60.4 6.3 37.8 30.5 11.6 -5.7 37.1 20.3 21.5 23.2 30.5 16.2 292.0 25.4 56.6 118.5 14.7 21.3 24.4 Trader to Public 31.8 28.0 53.2 9.7 61.0 -14.2 43.7 38.0 31.5 17.9 63.7 30.6 44.4 32.0 49.0 50.0 366.7 39.0 72.0 200.0 36.1 26.2 36.7 MOTORCYCLES 2020 Public to Trader 7 113 50 2 32 4 9 10 3 16 2 45 7 24 18 12 354 Public to Public 86 587 201 25 174 35 17 87 54 31 105 26 179 69 30 17 3 243 28 11 70 38 2116 Trader to Public 28 134 55 5 32 5 3 15 16 2 31 7 52 10 4 5 43 5 1 19 10 482 MOTORCYCLES 2019 Public to Trader 4 99 21 3 19 1 3 2 13 10 46 5 24 3 5 2 260 Public to Public 69 502 131 44 91 43 12 68 56 24 64 16 157 43 34 5 207 26 4 62 37 1695 Trader to Public 15 96 34 5 18 8 5 12 10 6 23 12 31 4 3 1 40 3 16 2 344 MOTORCYCLES % CHANGE Public to Trader 75.0 14.1 138.1 -33.3 68.4 300.0 0.0 200.0 0.0 50.0 23.1 -80.0 -2.2 40.0 0.0 0.0 0.0 0.0 -100.0 0.0 260.0 500.0 36.2 Public to Public 24.6 16.9 53.4 -43.2 91.2 -18.6 41.7 27.9 -3.6 29.2 64.1 62.5 14.0 60.5 -11.8 240 0.0 17.4 7.7 175.0 12.9 2.7 24.8 Trader to Public 86.7 39.6 61.8 0.0 77.8 -37.5 -40.0 25.0 60.0 -66.7 34.8 -41.7 67.7 150.0 33.3 0.0 -100 7.5 66.7 0.0 18.8 400.0 40.1 TRUCKS 2020 Public to Trader 75 1264 310 27 136 31 18 126 35 24 172 40 154 63 45 20 276 21 6 75 79 2997 Public to Public 571 1996 811 143 683 187 153 356 232 108 439 137 533 291 111 76 11 913 152 51 364 302 8620 Trader to Public 233 1022 469 80 329 96 93 213 119 55 284 72 252 105 68 39 8 415 78 24 197 141 4392 Trucks 2019 Public to Trader 80 965 306 63 115 53 21 100 51 34 176 39 150 62 41 9 284 28 79 90 2746 Public to Public 376 1635 513 141 364 170 88 258 176 110 272 127 411 207 63 28 4 727 88 27 350 232 6367 Trader to Public 149 813 292 91 159 83 62 148 83 60 167 55 181 96 66 17 332 33 9 151 119 3166 Trucks % change Public to Trader -6.3 31.0 1.3 -57.1 18.3 -41.5 -14.3 26.0 -31.4 -29.4 -2.3 2.6 2.7 1.6 9.8 122.2 0.0 -2.8 -25.0 0.0 -5.1 -12.2 9.1 Public to Public 51.9 22.1 58.1 1.4 87.6 10.0 73.9 38.0 31.8 -1.8 61.4 7.9 29.7 40.6 76.2 171.4 175 25.6 72.7 88.9 4.0 30.2 35.4 Trader to Public 56.4 25.7 60.6 -12.1 106.9 15.7 50.0 43.9 43.4 -8.3 70.1 30.9 39.2 9.4 3.0 129.4 0.0 25.0 136.4 166.7 30.5 18.5 38.7

www.autotalk.co.nz

JULY 2020 New Zealand 43 HARLEY-DAVIDSON LIVEWIRE PRE-ORDERS OPEN

The Harley-Davidson LiveWire all-electric motorcycle is available for pre-order and will be at EV specific Harley-Davidson dealerships from September.

iveWire ride away pricing starts at LNZ$53,995. A twist of the throttle accelerates it, with no clutching or gear shifting required, and it has up to 235km range. An optimised centre of gravity, rigid aluminium frame and premium adjustable suspension components give dynamic handling. It can get to 100km/h in 3.0 seconds and 100km/h to 129km/h in 1.9 seconds, and the torque always on tap means roll-on acceleration for passing from any speed is outstanding. Regenerative braking adds charge to the battery, especially in urban traffic. The H-D Revelation electric powertrain produces minimal vibration, very little heat, and minimal noise, all enhancing rider comfort. DC fast charging provides up to 80% A Daymaker LED headlamp, plus LED It is designed to produce a mechanical battery capacity in 40 minutes or 100% signal, brake and tail lamps are bright and signature Harley-Davidson sound within an hour. conspicuous in traffic. as it accelerates and gains speed; a new sound that represents the All participating authorised Harley- Colour options are Yellow Fuse, Orange smooth, electric power of the LiveWire Davidson dealers selling the LiveWire Fuse and Vivid Black. motorcycle. model will offer a DC charging station at A selection of new accessories specific to their dealership. There’s no engine oil to change, and no the LiveWire motorcycle will available at the spark plugs, air filter or primary drive The LiveWire motorcycle is equipped with launch, including a two-up seat and tail to service, making the LiveWire easy to a full suite of electronic rider aids and section, a speed screen blade, decorative maintain. Some inspection or service interfaces for a connected experience. trim, hand and foot controls and a motorcycle cover with a charging cord port. of some mechanical and consumable A 4.3-inch touchscreen above the items, such as the drive belt tension, handlebar offers the rider a wide range Many existing Harley-Davidson Genuine gearbox oil, brake fluid and brake pads, of information. Motor Parts & Accessories, including hand and foot controls, mirrors and Spectra Glo and tyres, is required at recommended Seven selectable Ride Modes decorative lighting, may also be used to intervals and pre-ride. electronically control the performance customise the LiveWire. The high-voltage battery has a five-year, characteristics of the motorcycle and the unlimited-mileage warranty. level of RDRS intervention.

44 New Zealand JULY 2020 COMMERCIAL VEHICLE REGISTRATIONS CLIMB BACK

New and used commercial vehicle registrations were buoyant in June, both reaching similar levels on the same period the year prior.

Total registrations of new trucks and Mercedes-Benz follows, down 8.8% in June with 39 units registered and a buses over 3500kg GVM sit at 437 units with 31 units registered, Fiat up 23.2% market share. This is up 25.8% for June. This is down 3.3% compared 130.8% (30), Iveco up 17.4% (27), compared to the 31 registered in the to the same period the year before Scania down 3.7% (26), DAF up 42.9% same period last year. which saw 452 registrations of new (20), Kenworth down 10% (18) and Isuzu is second, up 5.4% with 39 commercials for the month. Volvo up 7.7% (14). registered and a 23.25 market share. A total of 2230 new trucks and buses Total registrations of used trucks Toyota is third, up 15.2% with 38 have hit the road in the year-to-date and buses over 3500kg GVM sits at registered and a 22.6% market share. compared to 3078 for the same period 168 units for June. This is up 3.1% Mitsubishi follows, down 25% with 15 the previous year. compared to the same period the year units registered, Nissan down 42.9% prior. Isuzu is market leader for the month (8), Mazda up 40% (7), Ford up (3), with 107 new units registered and a Isuzu NZ general manager Dave Kenworth unchanged (3), Mitsubishi 24.5% market share. It was up 17.6% Ballantyne says it’s a good result and Fuso up (3) and Fiat down 60% (2). compared to the 91 units registered in there is still some catch up going on the same period the year prior. following the lockdown period and that Fuso is in second spot for the month, had an effect in the month of June. down 11.6% with 61 registered and a A total of 771 used trucks have hit the 14% market share. road in the year-to-date compared to Hino is third, down 32.2% with 40 1103 in the same period last year. registered and a 9.2% market share. Hino is market leader for used trucks

NEW TRUCK MAKES JUNE 2020 USED TRUCK MAKES JUNE 2020

MAKE JUN’20 JUN’19 % CHANGE MARKET YTD’20 YTD’19 MAKE JUN’20 JUNE’19 % CHANGE MARKET YTD’20 YTD’19

ISUZU 107 91 17.6 24.5 453 625 HINO 39 31 25.8 23.2 136 221

FUSO 61 69 -11.6 14.0 296 430 ISUZU 39 37 5.4 23.2 169 230

HINO 40 59 -32.2 9.2 236 373 TOYOTA 38 33 15.2 22.6 186 231

MERCEDES-BENZ 31 34 -8.8 7.1 166 195 MITSUBISHI 15 20 -25.0 8.9 68 117

FIAT 30 13 130.8 6.9 133 129 NISSAN 8 14 -42.9 4.8 51 105

IVECO 27 23 17.4 6.2 134 135 MAZDA 7 5 40.0 4.2 26 27

SCANIA 26 27 -3.7 5.9 153 93 FORD 3 1 200.0 1.8 12 24

DAF 20 14 42.9 4.6 62 126 KENWORTH 3 3 0.0 1.8 8 13

KENWORTH 18 20 -10.0 4.1 83 144 MITSUBISHI 3 2 50.0 1.8 13 21 FUSO

VOLVO 14 13 7.7 3.2 155 180 FIAT 2 5 -60.0 1.2 21 18

OTHER 63 89 -29.2 14.4 359 648 OTHER 11 12 -8.3 6.5 81 96

TOTAL 437 452 -3.3 100.0 2230 3078 TOTAL 168 163 3.1 100.0 771 1103

JULY 2020 New Zealand 45 15-MONTH SAGA OVER TRANSMISSION

DUFFY V GTR MEDIA LIMITED TA trader on December 31, 2018. It offered specialist for further diagnosis. The AFFORDABLE AUTOS to book the vehicle in for a service. The purchaser dropped the vehicle at the In this case, the purchaser paid $11,980 vehicle was taken for a service at a local trader, which kept it for a day and a half. for a 2012 Volkswagen Golf TSI on repairer on January 8, 2019. The invoice However, the purchaser was not provided December 4, 2018 from the trader. It had states the repairer road-tested the vehicle with any report from the specialist to 69,870km on the clock at the time, and and concluded that “it drives OK”. indicate what, if any, diagnostic tests it now has a mileage of around 80,000km. However, the invoice also records that the carried out and what the results were. The purchaser first started to experience repairer advised the trader to have the However, the trader told the purchaser that problems with her Volkswagen about vehicle inspected by a local transmission no issues had been found with the vehicle. two weeks after she purchased it. In specialist. However, there was no evidence Between April and October 2019, the mid-December 2018, she had parked the that this additional step was taken. purchaser continued to experience the vehicle facing downhill on The Terrace in The problems with the vehicle’s same transmission issues in her car, but Wellington. transmission continued. In mid-January less often. She needed to reverse slightly to 2019, she could not engage the vehicle On November 30, 2019, while she was manoeuvre out of a parking space. in D. Again, the purchaser had to turn the leaving Bunnings in Porirua, the purchaser However, when she put the vehicle into engine off and restart the car after some was unable to get the vehicle to reverse. reverse and depressed the accelerator time, after which she was able to engage She tried reversing out of the parking space, there was no power or engagement. its transmission in D. She returned the but the transmission would not engage. vehicle again to the trader, where a staff She shifted the lever to park (“P”) and She managed to push the vehicle out of the member took it for a test drive but could back to reverse (“R”) and depressed the park, then she put the transmission into D. not get the problem to recur. accelerator. But, again, there was no The vehicle engaged in D and she moved power and she was unable to reverse the In February 2019, the purchaser had forward but the car would only operate in vehicle. Even when she rolled the vehicle further difficulty engaging the vehicle’s first, third, fifth and seventh gears. forward slightly, the transmission still transmission in R. Again, the solution She later realised that the vehicle had would not engage. She turned the engine she adopted was to switch the engine gone into limp mode. She also noticed off and left it off for several minutes. off and wait several minutes before that a yellow engine service light had Eventually, an adjacent vehicle moved, restarting it, following which she could illuminated on the dashboard. then engage R. allowing Ms Duffy to start her engine, She managed to get the vehicle home very shift the transmission into drive (“D”), This time, the difficulties with the slowly and then advised the trader of this then drive her vehicle forward out of the vehicle were observed by the purchaser’s latest problem. The trader picked up the parking space. In that way, she avoided flatmate, who attended the tribunal vehicle and assured the purchaser that it having to try using R again. hearing and gave evidence to confirm that would be taken back to its repairer. this occurred. She returned the vehicle to the trader The vehicle was in fact taken to the but there was no persuasive evidence The purchaser returned the car again to transmission specialist which road that it made any attempt to diagnose the trader to advise them of this latest tested, scanned and assessed the vehicle a problem with the car. Rather, the issue. This time, the trader took the and found that its clutch was worn and purchaser claims she felt that the trader vehicle for a test drive but, again, the the bearing had broken and jammed “brushed off” her concerns. problem did not occur on the test drive. the shift fork. It has recommended that A few days after these initial problems, The problem recurred in March 2019. This the clutch be replaced, as well as the on December 18, 2018, the vehicle’s time she was able to record a video of it bearing. Its estimate for these repairs is transmission would not engage in D. The occurring on her iPhone. She provided $5368.78. purchaser switched off the engine and a copy of this video to the trader so Due to the dispute over who would waited several minutes before trying that he could see her depressing the pay for these repairs, the work has again. When she restarted the vehicle, accelerator with the gear shift in R, but not been completed. The vehicle she was able to engage D, allowing her to the transmission failing to engage. is currently undriveable and the drive forward. After he saw the video, he said he would purchaser has arranged for it to be She again returned the vehicle to the have the vehicle taken to a transmission towed to a friend’s place.

46 New Zealand JULY 2020 The tribunal notes there was a lack of was no evidence to indicate the car was she purchased the vehicle that [the evidence of the extent to which the treated in an unreasonable manner. purchaser] first experienced problems trader and/or the specialist attempted The adjudicator found the vehicle with her vehicle’s transmission that, to diagnose the reported problems the failed to comply with the guarantee of in [the technical assessor]’s view, are purchaser had experienced with her acceptable quality because it was not clearly linked to the current fault. vehicle during 2018 and 2019. as free from minor defects or as durable The clear link with the current fault The tribunal’s assessor thought that as a reasonable consumer would regard means that [the trader] remains liable these problems, which the purchaser as acceptable having regard to its age, for the repairs, notwithstanding the had experienced since not long after mileage and price. time that has elapsed before a full she purchased the vehicle, were “As set out above, the vehicle is diagnosis and estimate of repair costs clearly linked to the current diagnosis currently unable to be driven at all has been made available.” that the clutch and bearing needs to because its transmission has been The adjudicator did not feel the be replaced. stripped down to assess the nature of purchaser is entitled to reject the Although the assessor acknowledged the current fault. vehicle. That is because the right to that the problem experienced can be Immediately prior to that, the vehicle reject goods is lost if not exercised difficult to diagnose, he considers went into limp mode and was unable within a reasonable time after the that the symptoms experienced by her to be driven above a certain speed and goods were supplied. relatively soon after she purchased only in first, third, fifth and seventh “While not intending to criticise [the the vehicle are a strong indication gears. Based on these recent driving purchaser], because she made every that it had an existing fault with its features, I consider that the vehicle is effort to try and get [the trader] to transmission/clutch that manifested “substantially unfit” for the purpose diagnose and remedy the fault, it itself very soon after she purchased for which vehicles are commonly is now simply too long after she the vehicle. supplied, namely to be driven.” purchased the vehicle for her rejection to be valid.” The trader said in its report to the The tribunal noted the purchaser has the tribunal that the issues may have been right to request the trader pay for the She has waited until February 2020, contributed to by the purchaser having repairs to the vehicle. which is approximately 15 months a starter driver, and questioning “how The trader submitted that his business since she purchased the vehicle before many times has the Golf been put into should not have to pay for the repairs rejecting it. In that time, she has driven park before the hand brake has been because of the substantial amount of the vehicle approximately 11,000km. put on, automatically locking the gear time that has elapsed since the vehicle “It would be unfair on [the trader] to box up.” was sold. require it to accept the vehicle back The purchaser noted the car was normally “That submission might carry some after so long.” parked at the bottom of the driveway, weight were it not for the fact that not the top, and the tribunal noted there it was only about a fortnight after

TRADE Automotive software solutions Driving your business www.mta.org.nz DIRECTORY The comprehensive guide to every service a dealer could use

ORION NZ +649 5832455 | AU 1800 875149 INFORMATION SERVICE PROVIDER [email protected] FINANCE & INSURANCE Mid-range Dealer Management System installed in 500 business operations. Sales PROVIDENT INSURANCE VTNZ Workshop, Parts, Fleet, Rental, CRM 0800 676 864 | [email protected] 0800 88 88 69 | [email protected] Contact: Steve Owens, Chief Executive Officer Helping dealers “Make Profits Grow”. Specialist IT MANAGEMENT SYSTEMS F&I training, support and products to retail SYSTIME NZ +649 5832424 | AU 1800 221 654 motor vehicle traders. SAM [email protected] NZ +649 5832455 | AU 1800 875149 Autoline – Dealer Management & Distributor [email protected] Manufacturer Systems – The Most Globally The ultimate specialist Workshop Management used DMS System suite. Range of options to suit. UDC FINANCE 0800 500 832 | www.udc.co.nz

JULY 2020 New Zealand 47 Fast. Reliable. What more would you need?

We pride ourselves on speed of delivery

Moana Blue understand the importance of speed of delivery. Our aim is to ensure we move your vehicles from Japan to New Zealand as fast as we can. All the way from taking bookings close to departure, to making sure your cargo is cleared for delivery before arrival, we cut out unnecessary and costly delays. With direct sailings from Japan to New Zealand back on the schedule from July, we’ve got speed of delivery covered.

0800 MOANA BLUE | www.moana-blue.com