www.autofile.co.nz DECEMBER 2019

THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS Massive changes

Partnerships for loom for market over 30 years ‘Beware the Ides of March’ may be over the top, but restrictions on used imports threaten to create disruption Electric best from he used-imports industry and Demio, Honda Fit and at the market’s lower end may be Tokyo show is gearing up for one of its Swift – will also be hit because not unable to access up to 80 per cent biggest upheavals in years all variants have ESC. of their usual stock. asT the last phase of the electronic That’s because it only became The ESC rule will result in the p 16 stability control (ESC) rule fast mandatory for built in Japan model mix on yards in New approaches. from October 2014 onwards. Zealand changing, while some March 1, 2020, is the date for Before then, it was an optional market consolidation is expected the government’s final roll-out extra in many cases, while it only as import numbers dip and Billions invested in of ESC regulations, so all affected became compulsory there for good prices jump. driverless future stock must be border-inspected in in November 2019. While there may be short-term Japan or on-shore in New Zealand Industry pain, there will be long-term gain by February 29 at the latest. experts predict – the safety of our fleet will be It means the end is nigh for between 40 bolstered over time with newer p 22 some popular models, such as and 60 per cent vehicles on our roads. Tiidas and Hiace of used cars In this issue, Autofile talks to goods vans made before 2019 and imported at the industry experts about the way Making imported used from Japan. moment will no forward and provides a technical Suzuki NZ’s The supply of other used best- longer comply, guide to the changes. Full ESC ‘jigsaw’ sellers, such as the Axela while dealers coverage starts on page four. work

p 26

Paddon rides career rollercoaster

No Nissan Tiidas and no Toyota Hiace goods vans built before 2019 can be imported if border-checked after February 29 p 28

GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE Jacanna_Xmas Dec 2018.pdf 1 21/11/18 10:15 AM

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EDITORIAL Unscrabbling names

DIRECTORS EDITOR of automotive game Brian McCutcheon Darren Risby [email protected] [email protected] ph. 021 455 775 Darren Risby delves into the industry’s world JOURNALISTS Darren Wiltshire Sue Brebner-Fox of acronyms for some head-scratching fun [email protected] [email protected] ph. 021 0284 7428 in the run-up to the festive period Matthew Lowe [email protected] DESIGNER ost industries name would have stood Adrian Payne MOTORSPORT have technical out. Its first vehicle [email protected] Mark Baker [email protected] speak few was the 4 HP in 1900, a outsidersM fully understand. carriage-style car that Just think about those had a tiller-like handle Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. exciting work stories to turn the front wheels. Back copies are also available on the website. that need somewhat SMART. This name Copyright: Published monthly by 4Media Ltd, fuller explanations to DARREN RISBY was born of a co- PO Box 6222, Dunedin 9059. friends and family than operation between C Editor, Autofile All statements made, although based on information believed to be colleagues. Swatch and Mercedes- accurate and reliable, cannot be guaranteed, and no liability can be M accepted for any errors or omissions. Reproduction of Autofile in We often talk about issues du Benz. In 1982, Swatch’s boss, print or digital format in whole or part without written permission, Y jour in acronyms, which are formed Nicolas Hayek, wanted to develop a whether by copying or any other means, is strictly forbidden.

CM by taking the first letters of words car using the same manufacturing All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) to make up names, such as Opec as strategies and personalisation MY in the Organisation of Petroleum features as his watches. The result CY Exporting Countries. was the Smart car, which got its CMY To cut to the chase and a name from “Swatch Mercedes art”.

K chance to claim some industry VELOSTER. This hatchback’s kudos. Simply read the acronym in name combines “velocity” and Vehicle Inspection NZ red, look away, exercise your grey “roadster”. But the Veloster is matter and then check out if you anything but a roadster, which were right. If you get them is normally an open-top Delivering the perfect all correct, email editor@ two-seater, because more Entry Certification autofile.co.nz and we’ll than two people can fit publish your name in the inside – and under a non- specialists February issue. Cheat at removable roof. To add Christmas gift... your peril – Santa may be more confusion, Hyundai watching. once made a concept called the LEAF. Manufacturers dream Veloster Velocity. up “green” names for electric cars NISSAN. The original name for and Nissan is no exception. Apart the company when it was formed from its runabout’s name being in 1933 was Nihon Sangyo. Nihon linked to trees, it stands for “leading stems from Nippon or “Japan”, environmentally-friendly affordable and Sangyo came from the family” vehicle. If acronyms do Japanese for “industry”. When boost sales, there’s no better proof the company became publicly with more 400,000 Leafs shifted traded, the Tokyo Stock Exchange globally since being launched. abbreviated it to “Ni-San” and Vehicle Shipping General Freight Vehicle Tracking Shipping Schedule FIAT. The marque the brand ran with it. started in 1899 when . Before “F.I.A.T” stood for it was Nissan, it was • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges “Fabbrica Italiana Datsun. The name • Registration & relicencing • Exhaust emission testing Automobili Torino”, which comes from the last-name Load it » Ship it » Track it » Clear it » Deliver it translates as Italian Automobiles initials of its original founders, Factory, Turin. There weren’t too Kenjiro Den, Rokuro Aoyama 0800 GO VINZ VINZ.CO.NZ many cars back then, so the literal and Meitaro Takeuchi for “Dat”. www.jacanna.co.nz Tel. +64 9 825 0888 continued on page 4] [ www.autofile.co.nz 3 news Impact on market ‘considerable’

he final stage of for months about the affect the operators may have been buying more expensive vehicle. regulations to ensure regulation will have when sourcing up stock before the March 1 However, if supply of such electronic stability control compliant vehicles. deadline. “In the past, we’ve models at that price point dries (ESC)T is fitted and working on all “The impact on the market will experienced importers buying up but demand still exists, that cars entering New Zealand’s fleet be considerable in that 40 to 60 per up large in advance of the vehicle may then be worth $2,500 has the potential to disrupt the cent of used stock from Japan will implementation of a new rule or so it becomes worthwhile to spend automotive industry on a scale not no longer be able to be imported requirement, but it usually hasn’t money on it to keep it roadworthy. seen since 2004 when the exhaust on a business-as-usual approach,” worked because they have literally Vinsen warns there may also be emissions rule was introduced. he told Autofile. “Some dealers will ended up with stockpiles. some industry consolidation or “the That’s the view of David be affected more than others when “With rules such as ESC, supply shaking-out” of operators because Vinsen, chief executive of VIA (the it comes down to what models can into the country is restricted. It of their business models, size of Imported Motor Vehicle Industry no longer come into New Zealand. tends to be older vehicles in the operations, funding and so on, “or Association) with March 1, 2020, “People will only be able to buy fleet that are affected, such as those they’re less skilful at what they do by when used imports must be vehicles that comply with the ESC costing $6,000 to $8,000 because and more expensive vehicles will border-inspected here or in Japan, rule, so traders’ model mixes will those in this price range can no have to be imported”. fast approaching. change, price points will go up and longer be imported. So prices of “This will filter all to the way The ESC rule has been gradually import volumes will go down.” those already in the fleet go up.” down to the servicing industry, rolled out over the past six years, While VIA cannot provide a list of As a result, older – and, which will also need to have a look but its final stage means all used vehicles that will no longer be able to perversely, more unsafe – vehicles at what it does,” he adds. cars and vans will need to have the be imported, it does have an online may remain in New Zealand’s fleet “ESC has the potential to crash-avoidance system installed search facility, which importers and for longer. For example, if a car have the biggest impact on used and operational to comply. dealers can use to find out what currently worth $1,500 needs $500 imports that we’ve seen for years. Vinsen says VIA has been models may or are likely to have ESC spent on repairs for a warrant of However, our industry is made up of advising operators in the supply – and those that don’t. fitness, the owner may just scrap it entrepreneurs who have a history chain, importers and car dealers Vinsen notes that some or trade it in against a newer and of adjusting to new rules and the 

[continued from page 3] Their first cars were Datsons from 1978-94. It was the because of their smaller brand’s attempt to make size. Nissan bought an El-Camino-style the company in 1934 vehicle, but with jump and later changed it to seats and four-wheel Datsun to reflect the sun drive. Brat stood for “bi- Specialists in in the national flag. drive recreational all-terrain pre‑shipment inspections NSX. Okay, it’s more of an transporter”. The model only abbreviation than an acronym. sported this name in Canada and in Japan & UK Unveiled by Honda in 1989, it the US. In the UK it was known as sported a three-litre V6 and was the 284, and in Australia and New  Full border inspections the first time Japan had produced Zealand as the Brumby. a car to compete with the likes of GLH. Finally, we’re getting  Authorised MPI inspections Ferrari without the price-tag. The into the festive spirit with this  Authorised NZTA inspections name NSX reflected performance curveball, which isn’t strictly an milestones for the brand and its acronym. The Dodge Omni GLH  Odometer verification construction approach – “new was the brainchild of racer Carroll sports experimental”. Shelby. Built from 1984-86, it was  Pre-export appraisal ALFA ROMEO. Started just set to be the Coyote, but Dodge after the turn of the century, the rejected that name for Shelby’s  Vehicle history reports marque was born A.L.F.A, which suggestion of GLH – or “goes like stood for “Anonima Lombarda hell”. Its upgrade was the GLHS Fabbrica Automobili” or the with the “s” standing for “s’more”. Lombard Automobile Factory Company. It was a collaboration between French manufacturer Darracq and Italian investors. In 1915, Italian industrialist Nicola JEVIC NZ Romeo bought the company. 09 966 1779 www.jevic.co.nz BRAT. This Subaru was built Subaru’s Brat

4 www.autofile.co.nz news

t inevitable changes to the market. to cope with ESC requirements. vehicles over the next year or so”. “Although there will be a period “In past years when there have Willett says many popular used of adjustment when the rule kicks been regulation changes, we’ve Japanese imports in high-volume in, which will have a serious effect experienced stockpiling whereby ESC has slots – such as early 2005-08 Honda on the market and the industry, dealers over-purchase to carry the potential Fits, Mazda Demios and Suzuki there’s been six years’ notice of them through that period. If the Swifts – don’t appear to have implementing this final phase. current tight market situation to have the ESC, so that will take out a lot of “The ESC rule itself will be good prevails, I can’t see significant biggest cheaper and older vehicles. for the fleet. Over time, we’ll end stockpiling. At the moment, “ “It could push the average price- up with newer and safer vehicles cash flow is poor. If dealers can’t point to buy a used import up and on our roads.” stockpile, they will have to find impact on traditionally, when that happens, it additional stock elsewhere. used imports tends to drag the value of on-shore SQUEEZE ON CHEAP CARS “Generally speaking, there isn’t stock up with it. So you’re taking Frank Willett describes the amount usually a significant increase in sales that we’ve on-shore stock, which is old and of stock banned from entering the to match the increase in imported decrepit, and potentially extending fleet come March as “significant”, stock. It tends to operate in reverse. seen for years its life in-service because it’s worth but importers have been looking When there’s a surplus, it tends – David Vinsen more. The public may be unable buy at different types of vehicles they to drive car prices down because what it wants, so it defaults to an can bring in and will make business there’s more choice for consumers.” older vehicle and pays more for it.” decisions that suit them. He adds any increase in Each regulation change rules out “That could mean they top up purchase costs is difficult for certain types of vehicles commonly stock with second-time around New dealers to pass onto customers imported and sold for some time Zealand vehicles,” says Autohub in retail prices, “but if people are meaning traders that have tended NZ’s chief executive. “They could going to continue to be in the ” to sit in the affected sector have to look at sourcing from other markets business of importing and selling make business decisions. or change what’s on yards to later- these cars, they’re going to have “Some dealers who have been model and higher-value models. to price accordingly. If everyone in the game for a long time usually There are all kinds of things dealers did that, there would be a general see a major change such as the  can look at to rejig their businesses increase in the price of used ESC rule as a good time to retire, [continued on page 6] Background to rule n amendment to the Land goods vehicles. This is the date Transport Rule: Light before which they must be border- Vehicle Brakes 2002 was inspected as compliant. an independent choice Aannounced in July 2014 by the- The requirement to have ESC then National government. fitted and operational doesn’t apply This mandated electronic to some specialist models, such as Quest Insurance offers: stability control (ESC) for light vintage, motorsport and scratch- vehicles entering the fleet. It first built vehicles, which is consistent Mechanical Breakdown Insurance – backed by AA Roadside Assist applied to all new MA, MB, MC with other land-transport rules. and NA light passenger and goods ESC became mandatory for Comprehensive Motor Vehicle Insurance vehicles certified for entry into passenger vehicles built in Japan from – including learner and restricted license cover. service from July 1, 2015. October 2014, so it’s pretty safe to Weekly, fortnightly & monthly instalment options now Class MA is the designation for assume all cars from 2015 onwards available to match your customers pay cycle passenger cars, MB is for forward- have it installed except -grade control passenger vehicles, MC is vehicles based on station wagons. Guaranteed Asset Protection for off-road passenger vehicles, It only became compulsory Lifestyle Protection Insurance and NA is the classification for light for new van models in November passenger and goods vehicles with a 2019 and existing model ranges gross mass not exceeding 3.5 tonnes. in 2021. As for kei-class vehicles, Next up were used class MC which have engine capacities vehicles inspected at the border of 660cc or less, ESC became from March 1, 2016. From March mandatory for new passenger 1, 2018, all used class MA vehicles models in October 2014 and for If you are a forward thinking motor vehicle trader, or financier, looking for a trusted vehicle insurance partner, call Quest. with engine capacities of more existing models in February 2018. than two litres had to comply. You can check model compliance Contact: Simon Moore The final phase on March 1, online at www.via.org.nz and ph. 021 149 2266 2020, is for all other used class MA, questions can be emailed to e: [email protected] MB and NA light passenger and [email protected].

www.autofile.co.nz 5 news

[continued from page 5] which is always common place,” we’ve been dealing in – such as the says Willett. “Some older traders , and are telling us it’s getting too hard NV200 – will be non-compliant for Traffic-light checks for ESC to make a profit. Every time there’s import next year. a change, some exit the stage. But “It’s all very well to say, ‘just for every person who leaves the buy very-late model vans’, but the industry, there’s usually someone average tradie can’t afford to spend who doesn’t know any of that $25,000 on a good used one. It history and decides to enter it. doesn’t make good business sense “The difficulty is in importing for small contractors – they want and selling any type of vehicle for a $10,000 or $12,000 vans.” good profit. Most dealers are aware Macdonald says this means – as NO of the ESC rule changes. Some say was the case with the 2006 and they have a plan, others say they 2008 emissions rules – the value Mazda Axelas won’t worry about it until next year. of older trade-ins will escalate The general impression I get is it’s because buyers can’t replace them from 2003-08 going to be a case of ‘suck it and with stock from Japan. have ESC see what happens’.” “All people can do is recondition old vans and place them back VAN MARKET TO SUFFER in the market,” he told Autofile. The “biggest glaring gap” in the “Demand for them isn’t going to go used-imports market will be light- away, but supply will be choked off. commercial vans because there will I think dealers will become active in be no viable ESC-compliant stock for the local market, and recondition some time, says Graeme Macdonald. old or worn-out vans as there are “That’s simply because the no other options.” uptake of ESC in commercials Macdonald stresses stockpiling Only has occurred much later than the a lot of older cheaper cars retailing SOME car fleet – in many cases 2018 or between $5,000 and $8,000 is a Honda Fits 2019 with popular models, and different business case altogether even then it has been optional,” because of the combined costs of from 2006 have ESC explains the chairman of VIA’s interest, storage fees and space. North Island branch. “It’s not going to generate any “Commercials in Japan have additional income as a result and it longer cycles before they are doesn’t stack up. Because margins de-fleeted and are available for in that market are low anyway, you our market. They won’t be at an aren’t going to benefit by holding affordable level to touch, so we onto stock for six months before aren’t going to see a lot coming releasing it back to your dealership.” in next year or even in 2021, and He laments the demise of the until they can compete with New as a used import from Suzuki Swifts Zealand-new used products. March 1 because no models in “If you look at Nissan NV350s, Japan were kitted out with ESC. ARE LIKELY ESC is a feature of some of these “The 2005 Tiida is the most to have ESC from 2014 very new vans, but not in the lower plentiful vehicle in New Zealand’s end of the range. Some staples fleet. We will miss it because vehicles 

2011 variants may have ESC: 20C 2WD (06/2009 to 09/2011). 20C 90 Year Checking compliance Anniversary, 20E 90 Year Anniversary (01/2010 to 09/2011). 20E Navi (12/2010 to 09/2011). 15C, 20C Sky Active (09/2011 to 06/2012). he Mazda Axela is New Zealand’s top model when it comes to 2011 variant likely to have ESC: 20E Sky Active (09/2011 to 06/2012). first-time registrations of used imports. With many variants available, ensuring compliance is essential for car dealers. 2012 variants may have ESC: 15C, 20C Sky Active (09/2011 to 06/2012). 20E TVIA’s online tool can check cars by model. It’s from this information Sky Active (06/2012 to 11/2013). Autofile has compiled what Axelas are likely, may or do not have ESC. 2012 variants likely to have ESC: 20E Sky Active (09/2011 to 06/2012). 15C, No variants have been listed as having it from 2003-08. From 20C Sky Active (06/2012 to 11/2013). 2014, all are likely to have the system. The date in brackets is the production period. 2013 variant may have ESC: 20E Sky Active (06/2012 to 11/2013). 2009 variants may have ESC: 20C, 20E 2WD (06/2009 to 09/2011). 2013 variants likely to have ESC: 15C, 20C Sky Active (06/2012 to 11/2013). 15S (11/2013 to 09/2014). 15C (11/2013 to 08/2015). 2010 variants may have ESC: 20C, 20E 2WD (06/2009 to 09/2011) . 20C 90 This information is a guide only. VIA says all vehicles need to be inspected to ensure an Year Anniversary, 20E 90 Year Anniversary (01/2010 to 09/2011). 20E Navi NZTA-approved form of ESC is present before shipping. Failure to verify ESC is solely at (12/2010 to 09/2011). the importer’s risk with no liability for loss resulting from relying on the above.

6 www.autofile.co.nz news

t like it underpin what the market is up to the March cut-off and are about. And that’s cheap, cheerful, working their way through it. affordable and reliable transport for “Commercial dealers will be people who – for whatever reason okay for a period because they – can’t or don’t want to spend too tend to hold a good amount of much money. They don’t want to stock. They’re smart operators and outlay more than $7,000 or $8,000 will already be looking at building and the car may be financed. The up stock to ensure they have Tiida fits the bill year after year.” enough to last until well into 2020, Macdonald says some smaller but it will eventually run out. cars were fitted with ESC after “Dealers will start reconditioning 2012, but it varies between makes trade-ins, so vehicles our and models. “These smaller cars government would like to see off are affordable hatchbacks and are the roads will become valuable the bedrock of urban transport. commodities. Just because you cut Compliant vehicles will be off supply, doesn’t mean you cut off available, but not at the same price demand. The supply side will have so the cost of used imports will rise to find a solution, which will be to for two reasons – they will be later recondition older, high-mileage models and there will be increased trades for the lower price bracket.” pressure on those brackets. Macdonald describes dealers as “Right now, you can mix stock “a resilient bunch’, but believes some between ESC and non-ESC, but businesses will close. “I’ve been in from next year every import must the industry since 1988, and the ESC have ESC so every Kiwi buyer will be rule is the most significant overnight looking at the same vehicles, which change to our fleet’s supply. will cause competition between “Smaller, under-capitalised dealers in the market in Japan. dealers running on very narrow “VIA has already warned dealers margins with vehicles owned by to identify what vehicles they third-party export companies can buy. They should have done will find it tough. Some so-called their research by now. We have an ‘commodity traders’ got into the online tool so they can get a better market because it made financial understanding of what they can sense, but if they find it too hard buy. ESC in many models was an they may switch their business optional extra, which means agents model to something else. If it tidies over there will have to physically up the bottom end of the market, check a vehicle has it. I don’t think there will be many “Now is a good time for people too upset about that.” independent buyers to be talking That said, Macdonald believes to their agents to ensure they’re it’s highly likely the ESC rule satisfied with the pathway of change will increase the age of information – if the car doesn’t New Zealand’s fleet. have ESC, who is liable for that.” “We often talk about the big PROVIDENT As for the wider impact on the bulge of 20 to 22-year-old vehicles used-imports sector caused by the because we imported so many rule, Macdonald predicts a first- cars post-frontal impact and quarter decline in stock numbers emission rule,” says Macdonald. with import levels being healthy. “That isn’t going to change If there’s any stockpiling – because the value of older, especially of commercials – by the cheaper cars will be driven up by time they arrive in New Zealand after demand due to a lack of supply. being border-checked offshore by “Many older vehicles are still February 29, it will be April when doing good service. There’s no they arrive so May, June and July is financial incentive to get rid of when he thinks the first effects of the them or owners can’t replace them. rule change will be felt here. The lower end of the market isn’t “If there’s going to be a driven by aspiration – it’s driven by significant drop-off, that’s when it the need for transport. Sometimes may happen. It could be because our regulators either fail to stock in Japan is too expensive or understand that, or are deliberately dealers bought too much leading blind to this reality.”

www.autofile.co.nz 7 news Online tool helps out dealers efore buying a used import that a vehicle is fitted with ESC. from Japan, dealers can use One is the presence and correct VIA’s online tool to check operation of an appropriate tell- forB compliant stock. tale indicator on the dashboard, The model code can be entered the other is a statement of to see if a vehicle is likely to have compliance showing its fitment. ESC fitted, may have it or doesn’t. An ESC fault is normally The tool also has a search option by identified by the tell-tale indicator marque, model and year. lamp not going off at the end of One of New Zealand’s top three the self-check process initiated used imports is the Honda Fit and, when the vehicle’s ignition is with so many variants, it’s a bit of switched on. an ESC minefield. Similar to frontal impact Here’s an example. A search of and emissions requirements, 2012 Fits yields 38 results. These this provision doesn’t apply to provide the model code, such as immigrants’ vehicles, special GE613GA – GE6 is the model, 13GA interest vehicles and motorsport Part of VIA’s online ESC tool result if “Honda Fit 2012” is searched is the nomenclature identifying vehicles operated in accordance the sub-model or variant. Another physical check to ensure it is fitted ESC stock to the Pacific Islands with the conditions of a valid code given is DBA-GE6 – the and operational. Even if the result where, of course, local rates will low-volume vehicle authority card emissions standards identification. for a model is “likely” to have ESC, a apply,” he explains. issued for them. The rest of the first result states check should still be completed. “Cars more than 20 years Also excluded are vehicles it is two-wheel drive, the engine Other than a few exceptions, old and without ESC can still be manufactured, or first registered is a L13A, it has a continuous no light vehicles without ESC will imported, and there are some outside of New Zealand, 20 years variable transmission and a be allowed to be used on New exceptions for special-interest or more before the date of its first displacement of 1,339cc. The Zealand’s roads unless border- vehicles and those privately owned certification for entry into service in production period covered is May checked before March 1, 2020, by immigrants or returning ex-pats. New Zealand. 2012 to September 2013. As for because they will be non-compliant. “But other than that, there’s no The ESC provision also excludes whether it has ESC, it comes up as Malcolm Yorston, VIA’s technical wiggle room for dealers. If a vehicle low-volume vehicles made, “this vehicle is not equipped with manager, says there are two options arrives in New Zealand without assembled or scratch-built in electronic stability control”. for non-compliant arrivals and both ESC, it’s deemed unfit for purpose quantities of 500 or less in any one If a result states “may be have cost implications for importers. and cannot be driven on our roads.” year in that they aren’t not uniquely equipped” it means ESC was an “They can go to the wrecker’s modified low-volume vehicles, and optional extra, so the importer yard to be broken down into parts, THE SMALL PRINT not originally fitted with ESC and should ensure an agent on the or there are service providers in The NZTA says there are two certified in accordance with the ground in Japan completes a this country that can send non- methods of acceptable proof low-volume vehicle code.

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www.autofile.co.nz 9 news Rules for inspectors revised onflicts of interest (COIs) and how companies deal with them will feature stronglyC when the NZTA considers applications from entry certification and border-inspection operators. The agency has moved to the next phase of “sustained engagement” after receiving plenty of feedback while meeting with the industry over the past year. Kane Patena, general manager of regulatory services, says: “This included visits to certifiers and inspectors to further understand the way they operate, and ensure our documentation reflects best The NZTA is aiming to ensure any conflicts of interests do not affect the integrity of safety practice. As a result, we’ve improved outcomes in the vehicle-inspection sector guidance around ways to manage conflicts, and will provide more inspections must be provided. ownership or financial interest interests in third-party sites at which support to inspectors and certifiers.” There is a whole section on in any being inspected unless inspections are conducted.” The NZTA has committed to “other interests in vehicles”. If the transparent and robust systems Similar disclosures relate to updating its notice of appointments applicant, related entity or key negate any real or perceived key professionals in organisations. to reflect changes made following personnel has other commercial conflicts, and ensure accurate Separation needs to exist between its policy review, while “improving interests in vehicles, assurances inspections are done. This isn’t a other inspection, maintenance, safety by protecting the integrity must be given they will not “ban” on these type of potential repair or commercial activity of entry-certification decisions has compromise inspection integrity. conflicts, but a high level of involving vehicles. been our guiding principle”. “These interests create the risk scrutiny will be applied. “The primary duty of inspectors Applications close on December that the inspecting organisation Components include a COI and inspecting organisations is 20. Current notices have already has a COI between providing policy on staff training, identifying to ensure decisions are the result been extended out to June 30, an independent and disclosing of an independent professional 2020, with new appointments – for professional inspection interests, and dealing assessment against applicable a term between three and five years and another interest with breaches or requirements.” “depending on confidence in the in the vehicle being concerns. There needs applicant” – to start the next day. inspected,” says the to be “entrenchment THE BACK STORY agency. of separation and The September issue of Autofile MANAGING CONFLICTS “For example, if an independence of reported how the NZTA’s decision to The NZTA says border and entry- inspecting organisation inspection” from other maintain its COIs policy and bolster certification inspections should has an interest in activities. auditing of the inspection sector Kane Patena ensure each vehicle meets safety and repairing vehicles, it may In-house policies meant the industry could move emissions rules, is safe to drive, and is be interested in withholding entry on conflicts must also cover the forward after 18 months’ uncertainty. referred to a repairer and or specialist certification so it or a related entity independence of key personnel, The agency said its previous certifier to meet legal requirements. benefits from the work. On the other including directors, involved in the proposals would have had Its bottom line is, “inspection hand, if it has an interest in importing inspections from other activities – significant impact on the industry and certification functions need the vehicle, it may be interested and specifically how staff involved and would have been hard to to be rigorous and protected from in granting entry certification so it in importing vehicles, for example, regulate due to the nature of vehicle inappropriate influence”, which is benefits from not having to incur have no opportunities to influence ownership in the supply chain. where conflicts of interest come in. repair costs. These are examples of outcomes. Under those old proposals, The agency is enhancing types of COI that may arise.” The NZTA will also have to be the NZTA would have no longer appointment conditions for Applicants must demonstrate provided with evidence of the have permitted entry-certification information management, auditing, they can identify and disclose organisation’s monitoring and audit activities on a vehicle if an managing COIs and inappropriate interests, separate inspection activities, including full audit reports, organisation had an ownership influences, and third-party functions from other activities, and and financial or professional interests interest in it or border-inspected it. compliance sites. For example, a manage potential COIs to protect in vehicles must be declared. Consultation established this would list of companies or organisations inspection results. “The agency expects applicants to have been difficult to regulate due the applicant has, or anticipates There is a “particularly high be forthright in disclosing interests,” to the nature of vehicle ownership having, a significant commercial standard” for used light vehicles. the NZTA says. “You should err on the across the supply chain, so the relationship with relating to Entry-certifiers must have no side of disclosure if in doubt. Include overhaul was canned.

10 www.autofile.co.nz

1.3 An import port As the previous two figures show, the Port handles more imports than exports. This has important implications for the estimation of the economic contribution the Port makes to Auckland and New Zealand. The value the Port adds to imports is the swift passage of goods across the wharf, through Customs and other processing, and then on to the importer. The Port’s proximity to the destination and the efficiency of transport links out of the Port, matter. news 1.4 Types of cargo In 2018, the Port had visits from 1,200 vessels, with container ships comprising over half (54%) of all inbound and outbound vessels. Vehicle shipments accounted for the second most common purpose for vessels docking at the Port (17%). Closure Figurewill 5 Container vesselshike are the majority ofimport POAL visitors costs he cost of importing with road transport being the vehicles will climb by alternative, national GDP would fall millions of dollars if Ports by about $1.3b. ofT Auckland (POAL) is closed, The Auckland region’s GDP according to a new study. would fall by $1.2b, while Waikato’s The NZ Institute of Economic would be $68m smaller. Research (NZIER) says its closure “If the imported goods were will increase the cost of everything transported by rail from Northport crossing the border by $533-$626 or Tauranga back to Auckland, million annually. national GDP would fall by the Vehicle shipments accounted same amount of $1.3b. for 17 per cent of the 1,200 vessels “It is likely transport back to that visited Auckland last year and Source: Ministry of Transport Auckland would be a mix of rail car dealers will among those facing and road, so the true cost lies Source: Ministry of TransportVessel movements in and out of Auckland bigger bills for landing their stock. within these ranges.” POAL says the financial On top of import costs, it Tauranga and returned via road, “Some people claim closing 1.4.1 Containers burden will be “like a tax”. If identifies other negative impacts, the national economy would be Auckland’s port would not increase Today, especially in Auckland, containers are the largest type of freight. Container divided between the city’s 1.7 such as more than $1.2 billion a approximately $1.5b smaller per prices, but this isn’t true,” says Tony operations at the Port are concentrated on the Fergusson Container Terminal. million residents, they will each year in reduced GDP nationally year,” states the NZIER. Gibson, POAL’s chief executive. Containers, the metal boxes loaded on and unloaded from ships, are designed and built for pay between $313 and $368 per and fewer exports. In turn, that Most of that burden – about “Currently, the price of intermodal freight transport, meaning these containers can be used across different modes annum more for imports. ofwould transport threaten – from jobs ship and to rail create to truck – without$1.3b unloading per year –and would reloading fall on their the cargo. imports through distant ports, The NZIER’s study looks at what less investment. Auckland region with the Waikato such as Tauranga, is kept low by Containerisation has revolutionised sea transport and ports. Ships are far larger, but loading would happen if POAL was closed and “Insteadunloading, of now imported undertaken goods using large beingcranes impacted and straddle to carriers,the tune is of much faster.competition. An I’m also concerned and freight had to be delivered to importantcrossing theconsequence wharf in theis that CBD fewer and people $79m are employed annually. at ports loading and unloadingabout the increase in emissions the city from Northport or Tauranga. unitisedthey first cargo have such to asbe containe shippedrs toand, importantly,“If Northport cargo is moved was used in containers instead to caused by using distant ports.”

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www.autofile.co.nz 11 news

IN BRIEF Companies team up Historic car recognised for contribution to industry The Model A has been for finance products inducted into the Japan Automotive Hall of Fame as a historic vehicle. eartland Bank and lifestyle protection insurance. It was the country’s first series Turners Automotive “Heartland made a strategic production car built and sold with a Group have agreed to a decision to look at different view to mass production. Hdistribution agreement between partners for insurance to further Work on prototypes started in 1917 their respective MARAC and enhance our customers’ experience. and were completed in little more than a year with 22 units made by 1921. Autosure brands. Increasing the insurance product There were few specialised car tools or machinery back then, so the The strategic relationship means range will help to achieve this. first Model A was built by hand using hammers and chisels. The wooden Autosure products will be sold at “For our vehicle dealers, they body was lacquered with luxury British woollen cloth used in the interior. point of sale through the MARAC’s will not see a great deal of change With no design drawings to work to, and little knowledge of petrol consumer intermediary network except Autosure will be more heavily engines, vehicles bodies or interiors, or any experience in factory from mid-December 2019. involved on the insurance side, while processes, engineers overcame many difficulties to show domestic mass The relationship increases our end customers will have a wider production was possible. Autosure’s distribution network by range of products and support. The was designed at the Kobe shipyard of the about 20 per cent and is forecast Todd Hunter, chief executive Mitsubishi Shipbuilding Company, which is Mitsubishi Heavy Industries to generate $2 million in additional officer of Turners, adds: “This is a (MHI) today. Corporation split from MHI in 1970. revenue per annum for Autosure major opportunity for Autosure from the 2021 financial year onwards. that builds on the progress made Visitors’ centre to promote travel of the future MARAC is a financial-service over recent years. A marque is planning to create an interactive venue near its global provider with vehicle loans “We look forward to working headquarters where people can experience its products, technology available through its network of closer with MARAC to create a and visions for future mobility. Set to open by mid-2020 in Yokohama, authorised vehicle dealers. comprehensive product offering the Nissan Pavilion will also host new-vehicle unveilings. Autosure was already a provider and a seamless experience for its The 10,000-square-metre facility will feature advanced technologies. of mechanical breakdown insurance customers.” These include the ProPilot driver-assistance system, invisible-to-visible (MBI) to MARAC, but the new Chris Flood, Heartland Bank’s CEO, connected-car experiences, and Nissan Energy solutions that enable agreement means Autosure’s says this relationship with Autosure electric-vehicle customers and society “to better harness electricity”. payment protection insurance (PPI) will allow Heartland to maintain its Together, these will demonstrate Nissan Intelligent Mobility – the and guaranteed asset protection focus on customer outcomes. company’s vision for changing how cars are powered, driven and (GAP) will now be available to “Vehicle insurance is an integral connected with society. MARAC’s network of vehicle dealers. part of Heartland’s business,” he Both organisations say they will told Autofile. “By partnering with a Hydrogen truck inspired by Romans and art deco work closely together and create specialist market-leading provider in Hyundai has revealed a strong focus on technology to New Zealand, we can be confident its concept for a enhance customer experience. that customers have access to a hydrogen-powered Darryl Harnett, Heartland Bank’s broader range of insurances to help fuel-cell electric truck. head of consumer, says: “We’ve meet their needs. Its name, the HDC-6 had a relationship with Autosure “Our dealers will be able to Neptune, recognises for a number of years – Autosure access Autosure products through the Roman god of the seas to symbolise our oceans being the largest has underwritten MARAC’s MBI our online dealership platforms, potential source of such fuel on the planet. insurance, while MARAC has which will make it more efficient With its introduction, in addition to the road-proven Xcient fuel-cell underwritten its own GAP and for them.” truck, the marque is expanding its technology into the commercial- vehicle sector as part of its “commitment to create a decarbonised society”. The HDC-6 Neptune’s design draws inspiration from streamliner Meeting to review rules railway sets of the 1930s with its art deco function-driven style. IA (the Imported Executive and industry Hyundai’s commercial offerings include trucks from class two to eight Motor Vehicle Industry members have been working on and buses made at three plants and sold in 130 countries since the 1970s. Association) has called a required outcomes with changes Vspecial general meeting to change to VIA’s rules being identified. Electric SUV receives top award from guild its constitution following talks into The notice of the special meeting The I-PACE has been unveiled as the NZ Motoring Writers’ Guild’s car of its future funding. and documents – including the the year. It has been slated for February proposals and venue – will be Steve Kenchington, general manager of Jaguar NZ, says the honour 18 after its executive was directed published after the constitutional caps off a great launch for the SUV, which has been a pioneer in the to implement changes to ensure changes have been drafted. premium electric category. the association has enough money Members with questions can email He adds: “The I-PACE won an unprecedented three awards at World to carry out its functions following Nick Owens, South Island chairman, at Car of the Year, and more than 70 international awards.” 2018/19’s deficit of $233,181. [email protected].

12 www.autofile.co.nz www.autofile.co.nz 13 ev focus Ensuring electric is fit for purpose he range of a fully charged with a larger battery within the usual single get them home again. But battery electric vehicle (EV) gradually because they reckoned trip distances of EV fade will have a serious impact declines as its battery’s that 100km range would owners during normal on PHEVs’ cost effectiveness and Tenergy-holding capacity fades. be inadequate. daily routines. Ninety- environmental benefits because Older batteries also become The common one per cent of all trips more local journeys will have to be harder to charge because energy minimum range away from base and powered by fossil fuel. upload is slower and waste requirement of 100km or back again by battery A lot of families and businesses increases because the battery slightly less aligns well electric vehicles (BEVs) retain a conventional combustion gets hot. Therefore, older batteries with the need to reach Henrik Moller, co-founder, are less than 100km. engine vehicle for occasional long Flip The Fleet recover less energy as the car slows the next fast-charger Plug-in hybrids (PHEVs) trips, but transfer most of their local down or brakes during a journey. when journeying along main tend to be taken on a few longer travel to their BEV in order to save With less energy in the battery highways, which are generally trips away from base, but still 88 money – and take a smoother and at the start and less recovery along spaced at around 70-90km apart. per cent of the journeys are less more environmentally friendly ride. the way, maximum ranges shrink However, owners don’t like than a 100km round trip. Their old conventional vehicle tends as EVs get older. Owners may to push the range to its absolute PHEVs’ batteries are, so far, to collect cobwebs much of the time. eventually need to upgrade their limit. Most want to have a safety relatively small. Typically, they will However, it can age more gracefully batteries or sell to someone who margin of around 10 to 20 per cent deliver a maximum range on the because the EV has become the needs less range. of the battery’s “state of charge” battery alone of 50km. Battery family’s local workhorse. So how low can the range go left before they get back home capacity and energy efficiency will These range limits will become before the vehicle gets impractical? or reach the next rapid-charger. also fade as the PHEV gets older. much less of an issue in future Many EV owners have signed In practice then, the batteries The reduction of a PHEV’s because BEVs are rapidly getting up to Flip The Fleet, a nationwide will have to deliver about 10 to electric-propulsion range is less bigger and more efficient batteries. citizen science project to measure 20 per cent more range than that of an immediate practical threat My Hyundai Kona delivers a full and predict the performance of indicated in the graph. because the driver has the back-up range of 450km in ideal conditions, their cars in New Zealand. They This minimum range is still well of the petrol or diesel motor to and around 400km in hilly and provide monthly data on distance rough country. I was recently able travelled, energy efficiency, What owners want from electric cars to travel from Dunedin to Nelson charging patterns and so on. A with just one brief rapid charge team of geeks then crunches the during a lunch break and a free numbers. overnight charge while I was Many contributors have sleeping at my motel. The new provided an estimate of “minimum Tesla Model 3 provides around practical range” when the car is 400km in range. fully charged. This is their estimates Newer BEVs are much more of when the EV will no longer be fit convenient for long trips, but they for their purposes. will also remain practical for a lot Most owners of 24kWh Nissan longer while still running on their Leafs consider that their practical original batteries. minimum range is about 100km or If PHEVs start to incorporate a little less. A minority figure they larger traction batteries, they could can cope with half that distance. also remain efficient for local trips Owners of the 30kWh model for more of their lives. require, on average, a larger range – many seek around 140-150km Henrik Moller is a retired sustainability on a full charge. Presumably, they scientist. Additional contributions by The minimum practical ranges required on a single charge by 167 owners of Dima Ivanov and Daniel Myall. Visit www. bought the more expensive Leaf 24kWh Nissan Leafs and 63 owners of 30kWh Leafs in New Zealand flipthefleet.org.

Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price listed on Trade Me last month: for the month: Eye on EVs -1.7% +10.6% +7.2% -24.7% -15.9% -2.6% • • Hyundai IONIQ $27.2k • Nissan e-NV200 • Mitsubishi Compared to Compared to Compared to Compared to Compared to Compared to • BMW i3 Outlander last month prior year last month prior year last month prior year * Figures as per the end of November 2019

14 www.autofile.co.nz ev focus Marque sets hydrogen targets

oyota Motor Corporation is plug-in hybrids – by 2030. than one-third of CO2 abatement a range of FCEV models already in planning to reduce average “Reaching this ambitious required for road transport. selected markets. These include carbon dioxide (CO2) target will require a wide range of Davis adds: “Hydrogen is an the Sora bus, which it expects to emissionsT per vehicle worldwide by technologies,” says Alistair Davis, indispensable resource to achieve introduce 100 of across Tokyo’s 90 per cent by 2050. chief executive of Toyota NZ. “We the much-needed transition to metropolitan area ahead of next It’s pushing the widespread believe that to bet on a single low-carbon energy use because year’s Olympic and Paralympic adoption of low-emission models technology to solve the challenge it can be utilised to store and Games. Others are the Mirai car to help achieve this, such as self- of decarbonising transport is too transport renewable energy to power in several markets, and forklifts in charging electric hybrids, plug-in risky. What if hoped-for advances transportation. The sooner we get the commercial use in Japan and the US. electrics, battery electric vehicles don’t materialise or production hydrogen economy going, the better.” FCEVs are best suited for (BEVs) and hydrogen fuel-cell lines fail to meet demand? Toyota, an active member of applications with long-range electric vehicles (FCEVs). “Technological developments the NZ Hydrogen Association, has requirements, heavier payloads Since driving ranges and tend to not take place at the and a high need for flexibility, says performance requirements differ expense of one another. The Total EVs by region the marque. widely between passenger cars development of BEVs and FCEVs is Northland 530 It adds if forecasted numbers and larger road-transport vehicles, likely to be synergetic – both rely Auckland 7,503 are realised, FCEVs would have Toyota believes hydrogen will play a on electric powertrains.” Waikato 918 lower investment costs than BEVs unique role alongside other electric The Hydrogen Council estimates Bay of Plenty 595 in long-range segments, with Hawkes Bay 271 models. It expects to be selling hydrogen will power more than shorter refuelling times and more Gisborne 57 30,000 FCEVs per year globally in 400m passenger vehicles, between efficient payloads. With renewable Taranaki 243 the not too distant future with the 15m and 20m trucks, and some five Manawatu/Wanganui 555 and clean hydrogen, they emit little current rate being 3,000 per year. million buses by 2050, which are – Wellington 2,459 CO2, and require less resources and The company is a member of on average – 20 to 25 per cent of Nelson/Marlborough 615 energy to manufacture than BEVs. the Hydrogen Council, which is their respective segments. Canterbury 2,667 Meanwhile, BMW is clear about the task ahead. That’s Since hydrogen plays a strong West Coast 27 complementing its EV offerings with to achieve the equivalent of 160 role in heavier and long-range Otago 1,047 its i Hydrogen Next. The FCEV was million low-emission vehicles segments, such a share of the Southland 136 unveiled at Frankfurt Motor Show in Source: MoT, November 13, 2019 – 80m zero-emission and 80m total fleet could contribute more September.

MonthlyMonthly light light EV EV registrations registrations -- new and and used used import import EV percentage share registrations 1050 4.00% 1000 3.75% 950 Used light New light 900 3.50% 850 3.25% 800 3.00% 750 2.75% 700 650 2.50% 600 2.25% 550 2.00% 500 450 1.75% 400 1.50% 350 1.25% 300 1.00% 250 200 0.75% 150 0.50% 100 0.25% 50 0.00% 0 Jul Jul Jul Jul Jul Mar Mar Mar Sep Sep Sep Nov Nov Apr Apr Oct Oct Oct May May May Jun Jun Feb Feb Aug Sep Aug Sep Mar Mar Nov Dec Nov Dec May May 2018 Jan 2019 Jan 2017 Jan 2018 Jan 2019 Jan Source: MoT, November 13, 2019

Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price listed on Trade Me last month: for the month: Eye on EVs -1.7% +10.6% +7.2% -24.7% -15.9% -2.6% • Nissan Leaf • Hyundai IONIQ $27.2k • Nissan e-NV200 • Mitsubishi Compared to Compared to Compared to Compared to Compared to Compared to • BMW i3 Outlander last month prior year last month prior year last month prior year * Figures as per the end of November 2019

www.autofile.co.nz 15

t Oh so quiet

on electric front Nissan’s Ariya Concept SUV riverless vehicles, motors for a “seamless” all-wheel- short overhangs, a rear light blade, The chunky cladding appears lifted intelligent transport drive (AWD) experience. steeply raked C-pillar, a one-piece from the CX-30 and the tail-light systems and hyper-cars Other than that, the marque light blade with blacked-out lenses design comes from the MX-5. Dnormally get tongues of chattering is keeping its engine and battery running across the body’s width, There are plenty of advanced classes wagging at international outputs, and other mechanical flared rear-wheel arches and a rear- driver-assist systems, including a new car events. information, under wraps for mounted wing. version of autonomous emergency However, vehicle propulsion now with more information to be Unlike 15 years ago when the braking that can prevent collisions and emissions – or lack of the divulged in coming months. The Leaf was styled to look and feel with other vehicles at intersections. latter – featured heavily at the concept is said to be close to a familiar as to not spook potential Enhanced lane-keep assist detects Tokyo Motor Show. production version, which should buyers, the Ariya has been seen more than just lane markings to keep And some major manufacturers soon make its final-form debut at the as a clean-sheet opportunity free the MX-30 on-track. A release down kept their cards close to their chests marque’s headquarters in Yokohama. of the packaging constraints of under hasn’t been ruled out. when it came to specifications of Labelled as completely vehicles with internal-combustion future models as competition in the unrelated to the Leaf, the Ariya engines (ICEs). EXAMINING BATTERY LIFE electric vehicle (EV) arena ramps up. heralds Nissan’s new design Targeting young drivers with Toyota revealed its latest zero- Nissan unveiled its second- direction, known internally as families, it also represents an tailpipe-emissions production generation EV architecture in the “powerful minimalism”. upmarket step for Nissan with its model at Tokyo Motor Show, the guise of the Ariya Concept SUV, Key elements include an suite of assist systems, such as the Ultra-compact BEV. That’s its actual pictured above. It boasts twin electrified V-motion shield grille, level-two autonomous “Pro Pilot name and it’s set to be released in 2.0” hands-off set-up. Japan late next year. While the company has no plans ‘OUTSTANDING RESPONSE’ for a launch on our shores yet, don’t Mazda did its impression of Björk’s rule anything out when it comes to song, Oh So Quiet, by being a this two-seater – at 2,490mm long, VEHICLES WANTED secret squirrel about its first step 1,290mm wide and 1,550mm tall, into the all-electric automotive it’s an on-paper rival for the French- DEALERS BUYING NOW world with its first zero-emissions built Smart EQ Fortwo. MX-30 small SUV. While the marque – quelle It will have the marque’s new surprise – has yet to reveal e-SkyActiv platform for battery powertrain and battery specifics, it VEHICLES WANTED EVs, which “combines outstanding has published some vital statistics All Audi, Porsche, Jaguar, Land Rover and Volvo Models response with dynamic behaviour in that it can travel about 100km to achieve performance drivers can between charges, a full charge enjoy naturally”. takes around five hours when using The powertrain’s details are a 200V charger and its top speed

Jeff Dacombe . 021 532 355 . jeff[email protected] not yet known, but the MX-30 is 60kph. Ideal, perhaps, to beat makes use of a 35.5kWh lithium-ion Auckland-commuting blues. battery. By comparison, Hyundai’s Its 2020 launch will coincide Kona Electric has a 64kWh unit that with the introduction of a company LATE MODEL FORDS & WANTED clocks up about 450km between full business model that aims to charges according to official figures. promote mass adoption of zero- The MX-30’s range is also still tailpipe-emissions models. secret, along with its charging This includes examining all times, but AC and DC chargers are steps in a battery’s life, such as its supported, while it shares all of its manufacture, sale, resale or reuse Call Jason Robb dimensions with the mechanically and recycling. To maximise used- Ph 0274 133 222 related CX-30 except for being battery values in the near term, 30mm taller. Toyota will expand leasing initiatives To advertise here, contact: Its exterior differs from the rest to recapture them for evaluation of Mazda’s model range mainly and reuse in second-hand vehicles [email protected] due to its rear suicide doors that or as service parts. Non-automotive or ph 021 455 775 haven’t been seen since the RX-8. applications are also possible. 

16 www.autofile.co.nz tokyo motor show

t As previously reported by Autofile, the company has revised its electrification plans with “at least” 10 such models to go on sale globally by “the early 2020s”. It’s also developing peripheral services for them, such as recharging stations and insurance. It predicts EVs, including battery-electric, hybrid and fuel- cell models, will account for at least 50 per cent of its worldwide sales in 2025 – five years earlier than what The Mi-Tech compact concept it anticipated back in 2017. alongside conventional petrol The concept is all but certain range than with purely electric ENHANCED USABILITY variants in some markets – is likely to include a plug-in hybrid option propulsion. The gas turbine The fourth-generation Jazz has been to get a scaled-down version of as Mitsubishi recommits to the generator will have a “powerful developed to set a benchmark for the two-motor hybrid powertrain technology rather than flicking the output” for its size and weight. compact cars, according to Honda, introduced in overseas markets on switch over to BEVs – and the same Mitsubishi has previously while creating a new standard for its the CR-V mid-size SUV. goes for the larger Eclipse Cross for integrated its quad-motor system vehicle development. The CR-V pairs a two-litre its mid-life overhaul next year. with “super all-wheel control”, Known as the Fit in some markets, Atkinson cycle petrol engine with The Mi-Tech has a new type of which includes front and rear active it will also become the marque’s two electric motors, dispensing range-extending plug-in hybrid yaw control for sporty handling. first compact to offer its two-motor with a transmission, similar to a BEV. drivetrain with a lightweight and Along with electric brake hybrid powertrain dubbed e:HEV. Honda has yet to disclose the engine compact gas turbine engine- calipers on the concept, the The marque promises better size for the Jazz hybrid, but a 1.5-litre generator instead of a traditional company claims this allows for forward visibility with redesigned may be logical for the lighter car. petrol ICE. “high response, high-accuracy A-pillars, more comfortable seats, The rear turbines appear capable control of drive and braking force better safety due to an updated OPTIONS FOR FUEL of feeding air to the compact rear- of the four wheels while delivering Honda Sensing package, and A compact crossover concept, mounted engine that can run on a a drastic improvement in turning enhanced usability through dubbed the Mi-Tech, launched by variety of fuels – diesel, kerosene and traction performance”. improved ride and performance, Mitsubishi in Tokyo drew plenty and alcohol are listed to allow It adds the quad-motor and advanced connectivity and extra of attention with its dune-buggy for clean-burning sources – and, electric-braking combination storage. bodywork and rear turbines. It also in range-extender style, it’s able enables the left and right wheels The Jazz is another example of a provided some clues as to next- to act as a generator to charge to be effectively counter-rotated marque remaining tight-lipped on the generation ASX and future plug-in the underfloor battery pack. The for “thrilling experiences, such as finer details about what’s under the hybrid powertrains. battery, in turn, powers the electric 180-degree spins”. bonnet. But it has been developed Related to the Engelberg motors, which are arranged in a Other innovations with the as a “benchmark with the intention Tourer concept shown in Geneva quad-motor set-up – two on each Mi-Tech include a human-machine of becoming the globally accepted in March, which previews the 2020 axle to enable four-wheel drive. interface as the main item in standard for compact cars suited to Outlander, the Mi-Tech’s front end Owners can still plug into an the minimalist cabin. It displays this new era” without compromising has a fresh interpretation of the electricity source to recharge, information detected through on space and usability. marque’s Dynamic Shield face that but this potentially flexible “sensing” technology, such as It will come in five guises. The may be reflected in the next ASX. design allows for a longer driving optical sensors on an augmented- standard variant is the Basic. Then reality windscreen. there’s a “warm and homely version” Mitsubishi’s next-generation called Home, the “vibrant” Ness – as driver-assistance safety technology, in Fit Ness for sporty types, a faux- known as Mi-Pilot, also extends to SUV version with black wheel-arch functionality on unpaved roads. extensions called the Crosstar and The concept’s off-road potential the range-topping Luxe. is reinforced by aluminium skid The hybrid Jazz – to be sold plates and chunky tyres. Toyota’s Ultra-compact BEV and BEV Business concepts Mazda’s MX-30 small SUV The fourth-generation Honda Fit Home

www.autofile.co.nz 17 news Stink-bug work wins award ystems to protect the used- and other countries at this stage car industry and country from unaffected by stink bugs – such as threats posed by stink bugs Chile – may require it sometime in Shave been honoured at this year’s the future.” New Zealand Biosecurity Awards. Winners of the 10 gongs at Automotive Technologies Ltd the 2019 NZ Biosecurity Awards, (ATL) won the innovation award which celebrate contributions for designing and building heat- to biosecurity in communities, treatment facilities specifically for businesses, iwi and government, vehicles before they are shipped were announced during a dinner from Japan. at Auckland War Memorial Nigel Grindall, chief executive Museum last month. officer, is proud of the technology There were a record 70 entries his company has created, which with the supreme award going has been used to heat treat “tens captions to Te Arawa Lakes Trust for Te Matt Battle, left, of thousands of cars” to obliterate and Jacob Bates, Arawa Catfish Killas, which aims to any brown marmorated stink collecting ATL’s award manage the catfish population. bugs (BMSBs). ATL’s heat-treatment project “This award is recognition of our was also a finalist for the industry efforts to come up with a solution award, but lost out to Livestock in a limited amount of time,” he told Improve Corporation’s efforts to Autofile. “It has been an example protect the national herd from of good old Kiwi ingenuity and it’s Mycoplasma bovis. Some of ATL’s heat- Dead stink bugs found good to get the win for the team, treatment facilities in Japan post-treatment The judges were impressed ATL which put a lot of hard work.” built its heat-treatment system ATL – a Japan-based, New short period and come up with our stock on the scale needed to from scratch. “It tested multiple Zealand-owned biosecurity system to deal with large volumes of accommodate New Zealand’s versions, overcame issues and inspection and treatment vehicles that need to be processed used-import requirements. improved its design until satisfied company – decided to tackle the has helped to save the industry. If we “Due to heat treatment, it takes with its design and functionality,” problem of BMSBs before the hadn’t made it happen, it may have much longer to process each they add. Ministry of Primary Industries ground to a halt. vehicle. It’s a lot of work during “Innovation played a huge part (MPI) made it compulsory for “If we had waited until the MPI those eight months and slows in its set-up. There are no off-the- all used vehicles and machinery announced heat treatment was things down, but we’ve invested shelf chambers available on the coming from Japan to receive going to be mandatory – that in greater capacity to get through market specifically designed to heat treatment. from September to April vehicles the volumes. We have maintained heat treat vehicles to kill insects. The project started in April would require this process – it things well and nobody has been “While paint-drying rooms 2018 was fully operational would have been too late for disadvantaged with the process and kiln units would have done within five months, and has us to make a system and get it we’ve got in place. the job, ATL felt the risk to New run successfully so far during approved.” “More and more cars are Zealand was too high because 2018/19’s high-risk season. Grindall says ATL’s facilities are starting to require heat treatment they weren’t specifically designed “We’ve been functioning our in use at four of its five sites in in the southern hemisphere. for heat treating vehicles. To systems for just over a year. The Japan, and the technology plays Countries importing from Japan get the best results, it decided a ability to answer the crisis in such a an important role in handling into Australia and Fiji require it, customised solution was best.” Have a happy and safe Christmas from all the team at

18 www.autofile.co.nz ADTORQUE EDGE Stink-bug work wins award Nurture digital leads for better returns s explored in previous should you manage this ON THEIR TERMS USE YOUR DATABASE columns, the new new brand of leads? If conversations They also need long-term nurturing, generation of customer with customers which means it’s important that Abehaves differently to that of the TIMELINESS IS KEY are continuing, it’s all contact with them is recorded past, preferring to have control Many dealers are important to confirm in your customer relationship over the way it communicates with slow to respond to their preferred management (CRM) database to a new provider. enquiries, particularly method(s) and times avoid bombarding them with too This month we look at how if they come through for contact. Many many calls or emails. CRMs usually best to manage leads that come digital channels, such TODD FULLER may need to speak include data, such as how many through your digital advertising as website enquiries or General manager to you after hours or times and when an email has been streams as, although they can chats, because they don’t AdTorque Edge NZ on lunch breaks. It’s opened. By using this intel, you can require some special treatment, view them as serious leads. Instead important to be flexible, and allow gauge their level of interest in your you will find they can be your most you should treat all enquiries, no them to dictate when and how the dealership and the best time to lucrative customers. matter the format, as potential communication takes place. contact them. Twenty years ago, most new sales by responding to them within customers were either walk-ins at an hour before they have a chance TREAD CAREFULLY If this new brand of lead is well- their local dealer, or would make to go elsewhere. Consider a time These new type of customers are managed by your sales team, your contact in response to radio or when you have logged an online often at the very start of their business will reap the rewards. print adverts, or following a vehicle enquiry – you You will find these customers are search on a classified site. would likely have less likely to look around at other They would want to speak to expected a quick dealerships, which means price their chosen dealership on the response, not will be less of a factor for them in phone or face to face, and when they wait two days for purchasing decisions. This in turn made contact they were well and an answer. Treat will give you the opportunity to truly in-market for a new vehicle. all leads with the leave more margin in a car, which With the advent of digital urgency they deserve. will benefit your bottom line. advertising, customer targeting Furthermore, if a customer has is far more sophisticated than it E-COMMUNICATION a positive experience with your has ever been. Targeting based on Despite what you’ve dealership from the moment of demographics and profiles means been taught, don’t just enquiry right through to delivery of prospective customers can often pick up the phone. Many the vehicle, the results will be sure to be reached at an earlier stage in early-stage leads will be in reflect in your customer satisfaction the buying journey. response to a digital advert, so purchasing journeys. They don’t index – and in repeat business These customers are often likely it’s more than likely people will want to feel pressured into making through service and further sales. to be in the early “consideration” contact you electronically via decisions about new vehicles, so So when you see those chats phase of the purchasing cycle. This website enquiry, live chat, SMS, it’s important to tread carefully and web enquiries come through means they may not necessarily be email or Messenger. It’s important with them. Show empathy and from a digital ad, don’t dismiss in-market and ready to buy at the you respond to these customers understanding and, in the early them as from timewasters who time they see and respond to your as promptly as possible and in the stages, focus your contact more won’t purchase a car from you. advert, but experience has shown same way they have contacted you on providing information and Instead treat them as serious that – if nurtured and managed well – at least in the first instance. They answering questions about the buyers who, with a bit of long-term – these can be the most valuable need to feel as though they’re in car, as opposed to locking them TLC, could be your dealership’s leads for your business. So, how control of the communication. into a test drive. most valuable customers. ALICE ALICE ALICE ALICE

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

December 15, 1997 December 14, 1998 Views mixed on industry outlook Giltrap scores DaimlerChrysler coup Opinions were varied on how 1998 would shape up The distribution of Mercedes-Benz and Chrysler products for New Zealand’s motor-vehicle industry, although in New Zealand was likely to undergo major change after few people at the top spoken to by Autofile the formation of a new company, DaimlerChrysler NZ – believed it could possibly be any worse than 1997. 49 per cent owned by the Giltrap Group. Bob Field, Toyota NZ’s managing director, At that time, Colin Giltrap-owned German Motor believed the year ahead would show no growth in Distributors was responsible for Mercedes-Benz cars sales of new vehicles, which would remain at about 71,000. and commercials, while Chrysler’s distribution was handled by Astre NZ. But with the arrival of the Corolla in February, he conceded there After the international merger of DaimlerBenz AG and the Chrysler would be a huge customer bank that might be interested in updating Corporation, the two local businesses would also become one company. vehicles, so more might be sold in 1998. DaimlerChrysler Australia Pacific Pty Ltd would hold 51 per cent with Field said the jury was still out on the impact of the Asian downturn, the Giltrap Group owning the balance. Chrysler would move to Clemow but didn’t believe this country would avoid a downstream effect on its Drive in Auckland, adjacent to German Motor Distributors, and all economy. He added challenges facing the market included pressure on product would be distributed from both sites. dealer networks, tariffs and the need to reduce the price of distribution. As part of the change, German Motor Distributors’ general manager, Holden NZ’s chief executive officer, Don Bowden, expected an eight John Steele, was to step down and be replaced by Australian-based Kiwi per cent lift in new-vehicle sales in 1998. He based that on the number Earnie Ward, who was manager of the Mercedes-Benz business in Brisbane. of scheduled releases of major models, such as the Corolla and Falcon, Steel had been involved in the automotive industry for nearly 30 which would stimulate the market. years and was regarded as one of the most astute company heads in the business. December 17, 2004 Chairman Colin Giltrap said he was excited about the future of the Arrivals-to-sales deficit lower brands in New Zealand with the new Jeep Cherokee arriving in mid-1999. The traditional shortfall between passenger December 22, 2006 vehicle arrivals and sales was more than one- third smaller in 2004 than 2003, meaning less Microdots to tackle vehicle theft units crossed New Zealand’s wharves and more Tiny micro dots were about to be deployed had moved through dealers’ yards, a comparison nationwide to help fight organised car crime of year-to-date statistics showed. because about 20 vehicles were permanently In the first 11 months of 2004, 8,530 more disappearing every day in New Zealand. new and used vehicles entered the country than The Ministry of Transport’s vehicle-security were sold – 33 per cent less than the 12,843 at that point in 2003. division was working on preparing the standards Total year-to-date arrivals had fallen by one per cent from 221,197 for a whole of vehicle marking (WOVM) system, units in 2003 to 219,009, while total sales had increased by one per cent which would be implemented after publication of a from 208,354 to 210,479. gazette notice. The figures also showed a substantial disparity between new and The WOVM would see cars sprayed with thousands of tiny microdots used vehicles. With used imports, arrivals in 2004 had dropped 2.7 per carrying the unique vehicle-identification number of each one. cent and sales by 1.6 per cent compared with January to November It would implement a national vehicle-crime education strategy 2003. As for new vehicles, arrivals in that period had risen 2.7 per cent announced by former Justice Minister Phil Goff in 2005. He said: and registrations by a huge seven per cent. “This has proven to be a strong deterrent to professional criminals in Over the course of the year, the arrivals-sales deficit pattern had countries where it has been introduced.” been similar to that of 2003, with new imports consistently above David Lumsden, managing director of DataDot Technology in New registrations and used imports exceeding sales for the first half of the Zealand, said one of the major benefits would be more effective policing year and falling short in the final two quarters. and a reduction in police time spent trying to trace recovered car parts. Don’t go searching for news. Let the news come to you.

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trip south in November the various submission such as electric vehicles, change from one year to the next. In to talk with dealers across documents. plug-in hybrids (PHEVs), turn, this will have obvious impacts Southland and Central Further discussions other hybrids and so on the design and application of AOtago sheeted home to me the took place in October on – will be encouraged various financing mechanisms. relatively low level of awareness between industry via financial credits. There may be perverse among dealers about what’s being representatives and Higher CO2-emitting outcomes as consumers either bring proposed with the government’s Ministry of Transport vehicles will face entry forward purchase decisions to avoid clean car proposals – even though and NZTA officials. We’re penalties. Some of the future penalties, or defer purchase this may be the next big issue to now waiting to see if TONY EVERETT financial impacts may actions to secure future incentives. affect our industry. those discussions have Sector manager – dealers, be significant. The exact The market mix is also likely to Motor Trade Association These clean car policies focus helped to promote any mechanisms, or even change. Recent commentary from on the reduction of carbon dioxide changes to the original proposals. how this system will be managed, Europe observes that the move (CO2) emissions from our light- Regardless, the impacts on has not yet been defined. to SUVs – and perhaps utes in our vehicle fleet and propose the both the new and used-import The second part, the clean car market – has contributed to an introduction of a range of measures sectors are massive, and are likely discount, poses the introduction of overall rise in CO2 levels in recent to significantly influence the model to rank among the most significant another set of financial influences years, in turn making it harder mix coming into New Zealand. changes for the collective industry – both positive and negative – for for carmakers to reach emissions The final proposals are not in the past 30 years. application at the targets in 2020-21. yet set in stone, but it’s fair to say That’s why you point of retail. The With their added weight, larger the impacts on the retail motor need to take notice “Impacts on administration of these frontal mass and less-aerodynamic industry are potentially huge. and keep abreast of the retail proposals will add profiles, SUVs generate higher To recap, a discussion paper was the developments as motor complexity to the retail CO2 emissions than non-SUVs – an released in July for public feedback. they land so you’re process. average of 14 per cent per marque, Our industry organisations, such as in the best place industry are The application of according to a report from advocacy the Motor Trade Association, Motor to understand the potentially the discount is slated group Transport & Environment. Industry Association, VIA and the impacts and consider huge” to start in 2021 and Conversely, SUVs are better placed AA all made individual submissions, how you might react. the standard in 2022. to carry the added weight of hybrid which by and large voiced significant So what are we talking about Targets and incentives will change and PHEV technologies. concerns with the proposals. here? The first part, the clean car each year up 2025 and probably Now is a good time to build Autofile provided a useful standard, will impose significant beyond. The annual changes will an understanding of the initial summary of the proposals and financial impacts at supplier or obviously make it hard to forecast – proposals and related commentary. key points in the related industry importer level based on vehicles’ not that it has ever been easy. As and when the specifics of the submissions in its October edition. CO2 emissions. The financial implications, clean car proposals become clearer, That’s a good place to get a quick This is designed to influence what positive and negative, will lead there will be plenty more discussion overview of what’s been said so far, vehicles are imported. In short, zero to further downstream impacts. to come and it, undoubtedly, will be while more details can be found in and low CO2-emitting vehicles – Trade-in and residual values will a big issue for 2020.

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www.autofile.co.nz 21 tech report Billions invested in driverless future

evel-five autonomous The opportunities towards developing vehicle technology, and it has vehicles are defined and risks to traditional autonomous cars. It’s aggressively acquired several by their ability to drive vehicle manufacturers currently road-testing a artificial intelligence start-ups. Lanywhere, anytime and in any and technology fleet of vehicles. Many Ford reports that it has a fleet of condition a human could. companies are great. other companies on high-autonomy models currently The automotive industry has The potential for this list are developing being tested. It has announced it speculated they will be available the first to market and technology based on will begin production of level-four in 2030 and many industry players dominate the game is Baidu’s platform. They autonomous vehicles by 2021. are dedicating significant resources enough that they are all KIT WILKERSON include Ford, Daimler, General Motors (GM) is to achieving this goal. Toyota, competing to achieve it, Policy adviser and analyst Nvidia and Microsoft. pursuing a different strategy. It has [email protected] for instance, has budgeted $10 so the race is on. BMW was also partnered with Lyft, a transport-as- billion for related research and The following is an working with Baidu, a-service company and competitor development. update from several companies on but has since moved in a different of Uber. It is utilising millions of If accomplished, it will what’s publicly known about that direction. The German company trips paid for by customers using revolutionise transportation in progress. Due to the number of is now partnering with Intel and a Lyft to create detailed maps and ways not seen since the adoption relevant companies, I will break the sensor company called Mobileye. other technology necessary to of the car. Recently, however, list of players into several parts for At present, the marque provides develop automated driving. Apple’s co-founder, Steve Wozniak, the next article or two. level-two autonomy in some of its This partnership suggests that said he doesn’t believe he will see Alphabet’s autonomous vehicle vehicles, but has promised level- GM might potentially change its level-five autonomy achieved in his subsidiary, Waymo, has done the five capability by 2020. Whether business model and – instead lifetime. While Apple is maintaining most testing of driverless cars. To it can accomplish that lofty goal of selling autonomous cars to its driverless vehicle projects, the date, they remains to the public – it could sell fleets to company is openly admitting that have clocked be seen. companies that intend to use Lyft it will be much more difficult than more than Italian- to provide transport as a service. initially thought. 16 million American GM and Lyft are also working Waymo, a division of Alphabet kilometres in multinational closely with Google’s Waymo and which is Google’s parent company, self-driving Fiat Chrysler Jaguar Land Rover. is often seen as the leader in the mode and Automobiles Honda has announced it will development of autonomous in excess of The Portal, an electric -SUV hybrid has partnered have vehicles with level-three vehicles. John Krafcik, Waymo’s 16 billion with Waymo, autonomy by 2020 and boasting chief executive officer, also recently kilometres in virtual environments. Alphabet’s autonomous vehicle level four by 2025. The marque expressed his opinion on the Waymo is working through department. It has developed was considering partnering with challenge. He went so far as to say several partnerships to develop a unique product – an electric Waymo, but has since partnered it would never be possible. autonomous vehicles. minivan/SUV hybrid called the with GM. Assuming level-five autonomy As previously mentioned, Apple Portal, which is one of the only Hyundai has invested more is both possible and achievable, is working towards some level of electric vehicles that has yet than $2 billion and has thousands the vehicle and transport industry autonomous vehicle technology. piqued my interest. When available of employees dedicated to would be radically changed. By most accounts, the tech giant in 2020, the Portal will boast level- developing driverless autonomous It’s likely that it would was initially working on its own three autonomy, but has features vehicles. It has promised it will result in a severe decrease in vehicle or fleet solution, but designed for level-five autonomy have models ready for self-driving personal vehicle ownership and has since decided to focus on when – and if – it becomes on highways by 2020 and on city an increase in transport as a developing the technology that available. Its features include a streets by 2030. service. Companies, government, will enable autonomous driving. foldaway steering wheel. employers or even communities Baidu is a Chinese technology The blue oval has also been This is the first in a series on marques, and discuss how level-five autonomy might will own fleets with cars available company that has made many working with many partners change the future design of vehicles and to consumers on-demand. significant partnerships on its path to develop autonomous business models.

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www.autofile.co.nz 23 Industry movers NZ labour market report

JONATHAN SERGEL, currently head of cars at the igration during the past electronic card transactions for the Turners Group, will replace Stella Stocks as the AA’s year has increased New automotive industry – excluding general manager of motoring when she retires at the Zealand’s population by fuel – was the third highest end of this year. Mabout 11.4 more people for every monthly total in the past two years, Sergel has been with Turners since 2009. He has 1,000 already living here in the year sitting below $187m spent this worked in the industry for the past two decades, ending June 2019, according to August and September. including owning his own rental-car business, and working for Smith & Stats NZ. Total retail card spending Smith Glass and LeasePlan. It reflects annual net migration declined by 0.6 per cent to $5.7 As head of cars, he has been executive manager of the Turners Cars of about 56,000 people for a billion in October 2019 compared business. This encompasses supplier relationships here and in Japan, population of about 4.9 million. to figures from September this finance and operational responsibility for Turners Cars’ 13 branches. This rate is similar to Australia’s in year. The $32m drop mostly came “Both my father and grandfather have been owners of automotive 2017/18, but more than triple recent from less spending on long-lasting businesses, so motoring is in the blood,” says Sergel, pictured. migration rates in the UK and US. goods, such as appliances, and day- Brian Gibbons, chief executive officer of the AA, says “Given Stella’s In the latter, the net rate was three to-day expenditure on food and extensive achievements with us, we knew we would require someone per 1,000 people in 2018, which drinks falling. special to ensure the continued success of our motoring-services division. equated to an annual migration of “This dip in spending comes “We’re delighted Jonathan will be joining our ranks. He will be a great 978,800 on a population of 327m. after four months of higher sales,” addition and will relish growing our motoring services to the next level.” Tehseen Islam, manager of says Sue Chapman, retail statistics population indicators at Stats NZ, manager. “However, compared ANDREA ANDREW, of Hamilton, and TONY ALLEN, says: “Countries like New Zealand and with the year before, overall card of Katikati, have been elected as board members of Ireland tend to have larger swings spending has been fairly steady the Motor Trade Association (MTA). in net migration rates because they over the past year.” It is Andrew’s first time on the board. She started have small populations. While most retail industries her own consulting business for warrants of fitness in “Annual net migration has saw a decline in carding spending Andrea Andrew 2002, and is also director of Pro Bars 2008 and Tranda ranged between 48,000 and during October, fuel sales bucked Construction. She has chaired the MTA’s Kaimai 64,000 since 2015, and remains the trend by climbing 0.7 per cent, regional executive committee since 2017. at historically high levels. Migrant or by $4.3m, from September’s Allen has been re-elected after being voted onto arrivals are higher than when net total to $583m. the board in 2015. He established his first automotive migration peaked at almost 64,000 Households are the biggest repair business with family members in Auckland in in the year ended July 2016.” consumers of petrol by accounting 1986 before starting his current business in 2005. Tony Allen Migrant departures came in for 59 per cent. The rest of refined The MTA’s other board members are president Dave Harris, of at 92,200 – up 1,400 from the petrol use is spread across other Matamata, vice-president Bob Boniface, of Auckland, board-appointed previous year. Migrant arrivals industries, such as construction, independent director Samantha Sharif, of Wellington, and Sturrock and departures include the flows trucking, manufacturing and Saunders, of Blenheim. of New Zealand citizens and non- farming. Road transport is also a citizens because both affect the significant business user of petrol MICHAEL STIASSNY, former chairman of the population living in New Zealand. at four per cent. Diesel has a wide NZTA, has joined the board of the Financial Markets There were 113,900 migrant range of consumers, although it is Authority, along with Sue Chetwin, chief executive of arrivals of non-Kiwi citizens in more skewed towards businesses Consumer NZ. the year ending April 2019, up by with road transport accounting for Stiassny most recently made headlines when he 9,100 compared to the previous 21 per cent. stepped down from his position at the transport agency after its major 12 months. The top four countries The findings come as Stats NZ revamp, which included bringing lawyers in to resolve outstanding for such arrivals were China with unveils an interactive online tool issues with regulatory compliance. 17,300, India on 13,200, the that shows the range of connections Philippines on 9,000 and Australia between different parts of the NICK HAMLIN has been reappointed to MotorSport with 8,900, while arrivals of New economy. NZ’s board of directors for a three-year term. Hamlin, Zealand citizens dropped by 1,700. “It lets you see who supplies of Invercargill, had already contributed to the There were 45,700 migrant and uses around 200 products that organisation’s governance as a board member from departures of Kiwis over the help the wheels of the economy October 2016 to May 2019. 12-month period – up by 3,200 turn, from petrol and diesel, to – while non-New Zealand citizen fertilisers and legal services,” says DAVE BALLANTYNE is now general manager of departures dropped by 1,800 for a Gary Dunnet, national accounts Trucks having filled the role vacated by Colin total of 47,800. senior manager. Muir. Ballantyne, pictured, was promoted from his Meanwhile, retail card spending Other findings to emerge previous position of national sales manager, a post he on vehicles climbed by $9m in recently show New Zealand’s held since joining the company in September 2016. October to $185m when compared economy changing from one to the same month last year, dominated by farming to the service TO FEATURE IN INDUSTRY MOVERS EMAIL [email protected] Stats NZ reports. The splurge in industry being a leading sector.

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www.autofile.co.nz 25 industry profile Brand man’s passion for bikes t’s not quite a case of planes, “Of the 100 per cent Suzuki- trains and automobiles, but owned subsidiaries, as of now there the president of Suzuki New are three or four that have non- IZealand does have more “toys” at Japanese presidents although we’re his disposable than heads of other the only one that doesn’t have any marques in this country. SMC staff in our businesses. Tom Peck has been a Suzuki man “Suzuki NZ hasn’t had a resident for the vast majority of his career Japanese director for about 10 and, now he’s at the top, he has five years. At one stage, we had a market segments to look after – Japanese managing director visit small cars, SUVs, motorbikes, farm from Melbourne once a month. But and all-terrain vehicles, and marine. we no longer have that link and This makes the Japanese report directly to Japan. Perhaps t company’s operation on these New Zealand was the test case to shores unique and it also throws up see how it would work without a some interesting statistics, such as its Japanese director as we are one of parts warehouse having something the better-performing markets in like 175,000 line items on-file. terms of market share.” “With three very different product Peck’s career highlights include lines of automotive, motorcycle and being nominated as Suzuki’s marine, making the jigsaw work for international service manager of the total company can be a diverse the year two years in a row. “Then I Tom Peck with a 150cc challenge,” says Peck. Suzuki Gixxer street bike moved into motorcycle marketing “Having three networks means when we were number three we operate daily with about 115 motorcycle mechanic before going different jobs with Suzuki NZ. in New Zealand for motorbike different dealers, which is likely to be on to become its service manager “I assume I was last man sales. Within 18 months, we were one of the bigger automotive-based over a seven-year period. standing, although I do have past number one and have retained that networks in the country – and they “I had a break overseas for a experience at some level with position for 21 years.” operate in quite different ways with few months. I then ended up as technical, sales and marketing of He then worked in the motor- different customer demands. an automotive tutor at the tech in all three of our product groups. vehicle marketing department at “We have separate sales Petone for a couple of years before “At the moment, the Suzuki around the time the new Swift was departments for each product, moving to Whanganui where I Motor Corporation [SMC] is launched, “which we obviously but other staff – such as technical, rejoined the Coleman Group when slowly changing its distributors managed quite well”. accounting and parts – work for all it was selling out. to local governance – most “We’ve kept Swift sales rolling three products. With motorcycles, “After it became Suzuki NZ, I distributors have two or three along. Having it as the number- outboards and vehicles, all up we was national service manager for Japanese managing directors. one light car in the country and have around 200 different models.” motorcycles before adding marine The corporation has realised being number one for two-wheel Peck’s early industry experience and then motor vehicles. A couple locals may know more about motorbikes are other career was mostly motorcycle-based of years later, the company asked their markets than they do and highlights, as is working with because the distributor – Colemans me to become three more some of the most talented people Suzuki with its head office in sales manager non-Japanese in the industry and multiple Kiwi Whanganui – was predominately a for motorbikes. CEOs have motorcycle champions. motorbike importer with only a few I later moved been recently “I think the Swift’s popularity is two-stroke cars in its line-up. to marketing appointed. But because of how we introduced it. His passion for two-wheelers manager for before that, it We made its marketing fun. No-one goes back to when he was 11 and all products, was only New else was doing that at the time and he was growing up on a farm – an then general A Matchless G5 350, similar to this one, was Zealand and we made it good value for money. Tom Peck’s first set of wheels uncle loved them. “He gave me my manager and Canada with We saw the new Swift 12 months first motorbike, which I tinkered chief executive officer before my local chief executive officers. before it hit the market and with and rode around the farm and current position.” “Suzuki has a number of 100 thought it would sell quite well, but local roads”. per cent owned subsidiaries didn’t think it would go straight to He’s also had various boats over MODEST ABOUT SUCCESS around the world, of which we’re number-one light car. It was a nice the years, “so I’ve not only used Peck downplays his rise to president. one. Most are in major western surprise when its sales took off, but the products, but have also been “Obviously, I’ve been with the markets, such as the US, Canada, we were happy about that.” involved in the development and company for a long time and have most of Europe, Australia and The Swift has been subject to testing of some of them.” held a lot of different roles. That so on. It also has a number of some consumer focus this year due After leaving school, Peck joined experience has helped me get privately owned independent to the government flagging up Colemans Suzuki as an apprentice where I am. I’ve had a crack at several distributors in some countries. proposals to ban the importation 

26 www.autofile.co.nz industry profile

Gone fishing – Tom Peck with One of Peck’s favourite vehicles he’s a “small” Alaskan halibut owned is this 1969 Mustang 351

t of some older used cars based on been given a one-star used-vehicle major focus for many marques. Peck says the future will include varying safety-standard issues. rating was the safest light car you “The future of these technologies voice-activated personal assistants Autofile asked Peck if that has could buy at the time of its release and other alternative fuel types, that can operate many features of affected the brand moving forward. with a five-star ANCAP rating. such as hydrogen, is requiring huge cars, while software will be able “On one hand, there’s a world “Media reports about a possible investment,” says Peck. “They need to be updated seamlessly with standard for vehicle safety based on ban for ‘unsafe’ vehicles did cause massive research and development, diagnostic issues reported directly NCAP’s systems, which are properly some confusion for customers and new assembly facilities specific to manufacturers. These systems conducted laboratory tests to who own that model of the New to vehicle types. will also calculate the most efficient establish a safety-star rating. Zealand-new Swift and we had to “With each development, way to get somewhere and “Then there are used-car safety reassure them the cars they bought there are newer or more extensive vehicles will “talk” to each other. ratings calculated by Monash had five-star ANCAP ratings. intelligent transport features “Mobility as a service and University in Melbourne, which “The new Swift also has five and safety technology. Each new car-sharing will become more use accident data from Australia stars and is still the country’s most technology adds to the range of mainstream, so private-vehicle and New Zealand. This data is popular new light car, sales-wise. options available in vehicles, but ownership will likely reduce in the subjective based on any given Our press release at the time was truly connected cars of the future future,” he says. accident profile and you cannot aimed at reassuring owners they also require infrastructure, and “Although there’s a lot of hype, simply compare different incidents didn’t buy a one-star vehicle.” possibly legislation, changes. it will be a while before we’re being to decide a car’s rating. “World standards, such as Euro transported by driverless cars “The used ratings are full of INDUSTRY INTO FUTURE NCAP and ANCAP, get harder at because many infrastructure and contradictory information with Connectivity, autonomous, each review. Cars will continue technological challenges have to some models being identical other shared vehicles and electrification to become more connected and be overcome. That said, technology than their badges having different – collectively they are being provide seamless connectivity with will continue to change at a rapid ratings. The 2011 Swift that has known as CASE – are currently a other connected devices.” rate for the foreseeable future.” Back on the streets again Tom Peck’s uncle gave him his first them. I was living in Morrinsville and wheels – a blue Matchless G5 350 travelled to Hamilton every day, so motorbike. “He turned me into a it was nice to drive a vehicle with a petrolhead. I pulled it apart, did it up heater in winter. I’ve owned a lot of and used it on the road for a couple cars over the years.” of years after I got my licence at 15 His favourite was an Anglia 105E, and took up my apprenticeship.” the first car he modified and installed Next up was a new 650 Triumph a Cortina’s motor in. “I’m still waiting TR7 he bought for $1,650. “It was for my dream two-wheeler – a turbo- expensive because apprentices didn’t charged Hayabusa – and I have a earn much money. It was the same Mustang 351 in the shed. Ford’s Anglia 105E price as a new Mini at that time. That “At the moment I’m driving a was followed by a number of , Vitara. I may have it for a month or A 650cc Triumph TR7 including water-cooled two-stroke three until a dealer wants it for a triples, rotary models and large- customer. I can drive every Suzuki capacity four strokes. model, including motorcycles. I like “I owned a Mark I Ford Cortina at driving the Swift Sport, but need a the same time as the Triumph. My four-wheel drive, such as the Vitara, A Mark I Ford Cortina  mates owned cars and we modified to tow things.”

www.autofile.co.nz 27 motorsport Paddon on career rollercoaster

ne moment he’s up, Paddon Rallysport Group, after it the next down. Hayden revealed plans to develop a world- Paddon, New Zealand’s leading EV rally car based on the highest-achievingO rally driver, has Hyundai Kona. had his World Rally Championship Then, in late November, came a (WRC) aspirations twisted every whiff of hope when WRC boss Oliver which way over the past month. Ciesla – while visiting New Zealand Dropped by Hyundai after five to look at plans for this country’s years, the 32-year-old was given round of the championship in 2020 a lifeline by Ford ahead of Rally – endorsed Paddon and expressed Finland in August, but he never his desire to see the Kiwi in a rally got to compete after crashing out car for at least his “home” round. in practice. Preparations to return to WRC MARQUE’S EXIT BAD NEWS competition in Rally Australia Citroën has quit the WRC with were dashed by the massive immediate effect, attributing the and lethal bushfires that have decision to the exit of Sébastien stripped thousands of hectares Ogier from the team to drive for of bushland, and forced the Toyota Gazoo Racing. cancellation of that event. With the international Along with that went the “silly season” of driver signings second of two drives with Ford- beginning, this removes two backed M-Sport, although the active drive opportunities from the team remains closely interested in championship – a further obstacle running Paddon in the future. for the likes of Paddon. In mid-November, a Toyota sought a top driver despondent Paddon said: “We after losing 2019 champion Ott needed a score on the scoreboard very tough now. We had to find a race part of the summer series in the Tänak to Hyundai. Multiple world this year. I [wanted to] use it as a lot of funding this year – $600,000 TCR category using the second-hand champion Ogier fits the bill nicely. platform to go and talk to teams to worth – but we’re not in a position Hyundai i30 N he recently purchased. Tänak’s arrival at the Korean see what opportunities we can get to continue that.” It was the second major manufacturer’s team effectively for next year, but without that it’s He then announced he would announcement from his company, closes that door on Paddon. Hartley cuts Porsche ties orsche and Brendon relationship during which Hartley Hartley have ended their won two World Endurance relationship so he can race Championships and the 24 Hours Brendon Hartley is now racing with US-based Geox Dragon Racing Pwith a rival team. of Le Mans during his time as a As the marque was finalising its factory driver. The past two years have been was absent contesting the Super Formula E campaign for 2019/20, the Dragon Racing was started up a bit of whirlwind for Hartley. In Formula Championship final. It was 30-year-old announced his switch to in 2007 by Jay Penske and Stephen October 2017, he was offered a Hartley’s F1 debut and he became US-based Geox Dragon Racing. J Luczo. It competed in the IndyCar drive in Formula One by Toro Rosso the ninth New Zealander to race in The split is by mutual Series from 2007-14, and was one for the US Grand Prix in Austin. it, but Toro Rosso released him 13 agreement. It ends a six-year of the founding Formula E teams. He replaced Pierre Gasly, who months later.

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28 www.autofile.co.nz news Record numbers chip for charity record 36 teams did battle on fairways and greens in an annual charity golf Aday in Auckland that pulls together dozens of people from across the automotive industry. The event at Pakuranga Golf Club, which was co-sponsored by the AA and Continental Cars Audi, was organised by the Rotary Club of Half Moon Bay with support Lucas Martin, left, Jason Kim and Simon Papesch from Winger, Subaru and Suzuki, in Competitors’ briefing before the action starts from Protecta Insurance. Greenlane, Auckland, Josh Cairns, and Steve Allen and Nick Proctor from UDC A number of other companies Trust, Counties Manukau, being the The Life Education Trust has children in the Howick and helped by sponsoring holes, main beneficiary. The rest of the 33 branches nationwide. It sees Pakuranga area,” he told Autofile. including Finance Now, UDC money goes into a charitable trust. 250,000 children every year to “The money will go a long way Finance, Instant Finance, Yes “I like organising things where educate them about health and and enables us to deliver our Finance and TF Group. there are charitable benefits,” wellbeing, nutrition, puberty, programmes to more children. Nearly 110 players competed says Glading. “It’s also a great cyber safety and other matters. The “While the programme has the in the ambrose format with opportunity to get our customers Counties Manukau branch alone lovable Harold the Giraffe as its refreshments and a barbecue served together with teams coming from takes its mobile classrooms to about mascot, we tackle serious topics on the course. Back in the clubhouse a variety of industries. But in the 35,000 youngsters annually and that require a lot of research from they enjoyed drinks, dinner, prize- main they are from the motor and chief executive, Lincoln Jefferson, our teachers, so we’re proud to have giving and a charity auction. finance industries, and some of says funds from the golf day will an association with the Rotary Club Stephen Glading, chairman our suppliers. Supporting charity target part of the area it covers. of Half Moon Bay and those who of Protecta Insurance and also is worthwhile and the whole “This tournament has been played in the tournament. We aim a Rotarian, says the tournament atmosphere with the trust means supporting the trust for a number to educate children to make the raised more than $18,000 for the day takes on a new dimension. of years and money raised will right choices and make a difference charity with the Life Education Everyone enjoys it.” particularly help about 6,500 to their lives moving forward.” Car dealers scoop title at golf classic embers of the automotive industry and associated companies have taken toM the fairways to do battle in the Provident Insurance Golf Classic. About 100 competitors from across the North Island, plus a few from the south, went along to Riverside Golf Club, Hamilton, on November 21. A team from Duncan & Ebbett in Mitchell Lovich, left, of Duncan & Ebbett, receives the The 4Guys Autobarn team came second. From left, Simon Palfrey, Hamilton won the ambrose format winner’s trophy from Provident’s Jaques Gray Mike Ensor, John Anderson and Andrew Sheehan competition. 4Guys Autobarn, industry’s social calendar. also from Hamilton, and Farmer “We had about 102 people Autovillage, of Tauranga, came come along,” he says. “It’s all about second and third respectively. spending a day on the course and John Anderson, of 4Guys networking with people in the Autobarn, and Sarah Harris, of Wynn trade, such as dealers, suppliers Williams, took out the honours for and our service partners. longest drives for men and women. “It’s good to get together and Matt Bulbeck, of Ingham Motor Group be able to talk about how we can Todd Fuller, left, of Adtorque Edge, Hadyn Halls of Finance Now, Ralph Ball of Alphera Finance, and Chloe Webster, of Provident help each other, but at the same Paul Cloke and Tuks Nelio – also of Finance Now – and Mike Sexton, of the Marque Group Insurance, came closest to the pin. time play golf, and have a bit of fun on how people’s rounds are going, sixth year, was once again blessed Steve Owens, Provident’s chief and a few beers. that can change. We have a lot of with sunshine and staff from UDC executive, says the classic has “It is friendly, aggressive and laughs on the course.” Finance provided refreshments to become a regular fixture on the competitive although, depending The event, which was in its 26 teams on the Narrows Course.

www.autofile.co.nz 29 disputes

The case: The buyer wanted Dealer told buyer he was selling car for to reject her 1998 Honda Orthia because it needed repairs to pass a warrant of fitness. The seller said he his former partner and ex-staff member wasn’t a motor-vehicle dealer and the tribunal had no jurisdiction to consider the purchaser’s application Background account. However, the account brake-pad repairs, but not the for a refund. Deana Tyler bought a 1998 Honda displayed the “in-trade” label, so cost of a new tyre. The decision: The tribunal ruled Orthia for $1,800 on January 7, the buyer was protected under Tyler asked Thompson to pay for the seller of the vehicle was a car 2019, from Jack Thompson, who the CGA and Fair Trading Act the repairs. She added if he didn’t dealer as determined by the Motor said he was selling it on behalf (FTA). By law, anyone offering pay by March 8, 2019, she would Vehicle Sales Act and ordered him to pay for the repairs. of its owner Danielle Mulholland, goods or services for sale online have the Orthia fixed elsewhere and who was his ex-partner and a must make it clear to consumers seek reimbursement. Thompson At: The Motor Vehicle Disputes former employee of the motor- they are in-trade. offered to have the car’s WOF Tribunal, Christchurch. vehicle trader Thompson was Thompson told Tyler she could recheck done somewhere else at associated with. view the car where he was working his own expense, but didn’t follow Two days after purchase, the in Ferry Road, Christchurch, which through with that offer. applied to the transaction. car’s warrant of fitness (WOF) was the address of Easy Pay Online The buyer bought a new tyre A vehicle must have a current expired. Tyler asked Thompson to Autos and RT Motor Group. on March 13, then rejected the car WOF within one month before the pay for the repairs, but he refused. Tyler told the tribunal that seven days later via letter saying date of supply, but the Orthia’s Tyler then decided to reject the when she arrived to view the she wouldn’t have attempted to expired two days after purchase. Honda three months after purchase. Honda, she noticed other cars have it repaired had she known Vehicles sold by registered Thompson claimed he wasn’t on display at the location, but about its worn brake pads. motor-vehicle traders should be a trader, so the tribunal had she didn’t recall any signage to WOF-compliant, so the Honda no jurisdiction to consider this indicate it was a trader’s yard. The finding failed to comply with the CGA’s dispute, and that he had no She said Thompson implied to The tribunal found Thompson guarantee of acceptable quality. liability in respect to Tyler. her that he was a trader by telling was a trader when he sold the car “Acceptable quality” means her about repairs to the Honda, because he used the in-trade label goods must be fit for purpose, The case which made her more confident on his Trade Me account. acceptable in appearance and For the tribunal to determine the Orthia was in a satisfactory In addition, the address finish, free from minor defects, and Tyler’s claim, she had to prove running condition. where Tyler inspected the car safe and durable as a reasonable Thompson sold her the car while Thompson said he told Tyler was understood to be a dealer’s consumer would regard as acting as a dealer. he was a trader, but he wasn’t yard. In a text to her, Thompson acceptable having regard to the The Motor Vehicle Sales Act supplying the car to her in that described this as his “work” and nature of the goods, statements (MVSA) provides that a person capacity. Rather, he was assisting the address was the location of the about them, the nature of the must not – unless the person is Mulholland to sell it, so she was registered trader with which he supplier, representations made by registered as a car dealer under its actual seller. was associated. Also, Thompson the supplier or manufacturer and the legislation – carry on the Tyler noticed the Orthia’s told Tyler he was a trader. other relevant circumstances of business of motor-vehicle trading WOF had almost expired, but felt The tribunal noted the seller their supply. or hold out to be a trader. reassured by Thompson that it of a car can be an agent. Just The tribunal said Tyler wasn’t Someone who carries on the would pass an inspection. because Thompson was acting entitled to reject the car because business of such trading, or holds When Tyler tried to renew her as Mulholland’s agent, it didn’t she had started to repair it by him or herself out as a car dealer, is vehicle’s warrant on January 8, it mean he wasn’t the seller. Rather, replacing the worn tyre, but she treated as one under the MVSA even was failed for faulty windscreen it was enough that he displayed was entitled to recover money for if that person isn’t registered as such. wipers, brake lights, misaligned the car for sale at his premises and the uncompleted WOF repairs, The protections of the Consumer fog lights, cracked rear-differential offered it for sale – both in person new tyre and WOF inspection. Guarantees Act (CGA) apply when a rear mount, split right steering- and on his Trade Me account. vehicle is sold by a trader. rack boot and a worn tyre. Sonter After the tribunal ruled Order Thompson said the car was Automotive quoted $763 for Thompson sold the Orthia to Thompson had to pay Tyler $923 listed on his personal Trade Me remedial work. This included front Tyler as a trader, the CGA then for repairs to her vehicle.

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30 www.autofile.co.nz disputes

The case: The buyer was supplied Purchaser claims to being misled by with a 2008 Honda Civic Hybrid by the trader on the understanding its integrated motor-assist battery was trader about age of battery in hybrid new, but seven months after purchase it needed to be replaced. The dealer said he told his customer before the Background He discovered the battery replacing them with substandard transaction that it was second-hand. Indra Jakhotia bought a 2008 wasn’t new after driving about ones. The dealer denied knowingly The decision: The tribunal ruled Honda Civic Hybrid on October 11, 10,000km in the car because the installing them. the battery wasn’t of acceptable 2018, for $10,295 from Dreamline IMA light came on frequently. quality for the purposes of the Consumer Guarantees Act (CGA) and Motor Company Ltd when it had an The hybrid would then enter The finding ordered the trader to replace it. odometer reading of 98,400km. limp mode and lose power. He In this case, the buyer needed to He said he was told by the had the Honda assessed by Itech prove it was more likely than not At: The Motor Vehicle Disputes dealer its integrated motor-assist Automotive, which found the that Dreamline misled him by Tribunal, Auckland. (IMA) battery was new, so he could battery had deteriorated and had representing that the Civic’s IMA expect to drive about 100,000km in to be replaced. battery was new. the car before it needed replacing. Kumar denied telling Jakhotia The tribunal noted both new ones were needed, but it However, Jakhotia discovered the IMA battery was new or that he Jakhotia and Kumar gave ruled the evidence didn’t prove the battery wasn’t new and had to would expect to travel 100,000km consistent evidence in support of Dreamline had knowingly fitted be replaced seven months later. in the car before it required a their respective sides of the story. substandard ones. He also alleged the Civic’s tyres replacement. Due to the absence of clear A reasonable consumer should weren’t of acceptable quality for He added he told Jakhotia evidence to show that Dreamline understand that consumable items the purposes of the CGA. the Honda’s small front battery had stated the Honda’s IMA battery – such as a vehicle’s tyres – need to Dreamline denied telling was new, but its IMA battery was was new, the adjudicator wasn’t be replaced from time to time. Jakhotia the battery was new. second-hand. Kumar also said he satisfied Jakhotia had proven the Also, the CGA’s protections Further, the trader said both it and showed him a copy of the invoice dealer had engaged in misleading are not indefinite. They last only the tyres were sufficiently durable, for the IMA battery from supplier conduct in breach of the FTA, as long as is reasonable in the so he wasn’t entitled to a remedy. Strong For Honda to demonstrate but the vehicle’s IMA battery circumstances of each case by it was pre-owned. had deteriorated to the point it taking account of factors such The case Jakhotia went on to say the required replacing. as the vehicle’s price, age and Jakhotia tried to negotiate IMA battery wasn’t as durable as The tribunal acknowledged mileage, the length of ownership the purchase price of the a reasonable consumer would that a hybrid’s battery would before a defect becomes vehicle downwards, but he said consider acceptable, but Dreamline deteriorate over time, but apparent and distance travelled Dreamline’s director Akshay stated Jakhotia had driven the Civic Dreamline’s pre-purchase during that time. Kumar wouldn’t move on the price more than 10,000km following representation was that the one Jakhotia had owned the vehicle because it had a new IMA battery. purchase, so the battery was in the Civic had been recently for more than seven months before Further, Kumar texted him before sufficiently durable under the CGA’s swapped out for a genuine part the defective tyres were identified purchase to advise him a “new terms. tested by Strong For Honda. and had driven the car for more battery” had been fitted. The buyer also alleged the Therefore, it ruled the car than 10,000km. Jakhotia said this text would Civic’s tyres were substandard. He wasn’t as durable as a reasonable In those circumstances, the give a reasonable consumer took it to Midas Onehunga to be consumer would consider tribunal was satisfied that the Civic’s the impression that a new one serviced in May 2019. It noted all acceptable because the IMA tyres were sufficiently durable for had been installed. He added of the tyres were badly cracked so battery had deteriorated soon after the purposes of the CGA. Dreamline had engaged in new ones were needed. purchase. misleading conduct in breach of He added they were different As for the tyres, the tribunal Orders section nine of the Fair Trading Act from those shown in the vehicle’s noted evidence showed the Civic The trader was ordered to replace (FTA) because the battery wasn’t pre-purchase photos. He believed had different ones fitted when the vehicle’s IMA battery and unused. Instead, the dealer had Dreamline swapped the tyres after its pre-purchase photos were pay the purchaser $57.50, which fitted a second-hand one before it had obtained a warrant of fitness taken and the replacements was the cost of having this fault the hybrid was sold to him. – removing the good tyres and had deteriorated to the point diagnosed.

Disputes cost you time & money MTA dealer members have access to a free support service. Visit www.mta.org.nz/mediation or call 0508 682 633

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Imported Passenger Vehicle Sales by Make - November 2019 Imported Passenger Vehicle Sales by Model - November 2019

NOV ’19 2019 YEAR 2019 NOV MKT 2019 YEAR 2019 MKT MAKE NOV ’19 NOV ’18 +/- % MAKE MODEL NOV ’19 NOV ’18 +/- % MKT SHARE TO DATE MKT SHARE SHARE TO DATE SHARE Toyota 2,844 2,505 13.5 24.4% 28,678 22.2% Mazda Axela 618 576 7.3 5.3% 6,758 5.2% Nissan 2,117 2,257 -6.2 18.1% 25,037 19.4% Honda Fit 517 396 30.6 4.4% 6,212 4.8% Mazda 1,925 1,870 2.9 16.5% 20,989 16.3% Suzuki Swift 510 501 1.8 4.4% 5,691 4.4% Honda 1,220 1,120 8.9 10.5% 14,383 11.2% 430 470 -8.5 3.7% 4,814 3.7% Subaru 798 606 31.7 6.8% 7,713 6.0% Toyota Aqua 417 128 225.8 3.6% 3,163 2.5% Suzuki 585 598 -2.2 5.0% 6,653 5.2% Nissan Tiida 388 522 -25.7 3.3% 5,183 4.0% Mitsubishi 505 445 13.5 4.3% 5,851 4.5% Toyota Prius 368 400 -8.0 3.2% 3,799 2.9% BMW 362 403 -10.2 3.1% 4,548 3.5% Subaru Impreza 300 194 54.6 2.6% 2,747 2.1% Volkswagen 355 355 0.0 3.0% 4,066 3.2% 293 240 22.1 2.5% 3,377 2.6% Audi 216 236 -8.5 1.9% 2,360 1.8% Subaru Legacy 289 245 18.0 2.5% 2,918 2.3% Lexus 146 102 43.1 1.3% 1,427 1.1% Mazda Atenza 258 231 11.7 2.2% 2,737 2.1% Mercedes-Benz 101 174 -42.0 0.9% 1,511 1.2% Toyota Vitz 253 248 2.0 2.2% 2,714 2.1% Ford 84 68 23.5 0.7% 831 0.6% Nissan Leaf 240 320 -25.0 2.1% 3,074 2.4% Volvo 46 62 -25.8 0.4% 647 0.5% 239 238 0.4 2.0% 2,480 1.9% Hyundai 35 23 52.2 0.3% 299 0.2% Toyota Corolla 221 157 40.8 1.9% 1,802 1.4% Holden 34 25 36.0 0.3% 396 0.3% Toyota Wish 213 268 -20.5 1.8% 2,855 2.2% Land Rover 30 37 -18.9 0.3% 405 0.3% 197 199 -1.0 1.7% 2,218 1.7% Jaguar 28 32 -12.5 0.2% 418 0.3% Nissan Dualis 187 212 -11.8 1.6% 2,446 1.9% Jeep 27 21 28.6 0.2% 283 0.2% Toyota Auris 184 128 43.8 1.6% 1,850 1.4% Chevrolet 26 36 -27.8 0.2% 399 0.3% Nissan X-Trail 176 165 6.7 1.5% 1,966 1.5% Mini 25 30 -16.7 0.2% 290 0.2% 166 95 74.7 1.4% 1,341 1.0% Chrysler 21 22 -4.5 0.2% 232 0.2% Honda Stream 149 157 -5.1 1.3% 1,667 1.3% Dodge 18 18 0.0 0.2% 264 0.2% Toyota Vanguard 126 66 90.9 1.1% 1,061 0.8% 15 5 200.0 0.1% 123 0.1% Toyota Blade 118 122 -3.3 1.0% 1,234 1.0% Porsche 15 16 -6.3 0.1% 176 0.1% Toyota Ractis 116 94 23.4 1.0% 1,194 0.9% 15 6 150.0 0.1% 82 0.1% 112 72 55.6 1.0% 1,060 0.8% Peugeot 13 13 0.0 0.1% 103 0.1% Mazda CX-5 109 69 58.0 0.9% 1,169 0.9% 8 5 60.0 0.1% 65 0.1% 109 101 7.9 0.9% 1,373 1.1% Isuzu 5 5 0.0 0.0% 35 0.0% Honda CRV 105 86 22.1 0.9% 1,173 0.9% Pontiac 5 5 0.0 0.0% 34 0.0% Mazda Verisa 98 99 -1.0 0.8% 1,149 0.9% Plymouth 4 3 33.3 0.0% 27 0.0% Honda Odyssey 96 96 0.0 0.8% 976 0.8% Cadillac 3 4 -25.0 0.0% 53 0.0% 85 97 -12.4 0.7% 1,196 0.9% Chrysler Jeep 3 1 200.0 0.0% 20 0.0% Subaru Forester 80 65 23.1 0.7% 898 0.7% Alfa Romeo 2 2 0.0 0.0% 26 0.0% Toyota MarkX 80 95 -15.8 0.7% 1,119 0.9% Aston Martin 2 1 100.0 0.0% 17 0.0% Honda Insight 79 61 29.5 0.7% 785 0.6% Others 36 45 -20.0 0.3% 521 0.4% Others 3,748 3,943 -4.9 32.1% 42,763 33.2% Total 11,674 11,156 4.6 100.0% 128,962 100.0% Total 11,674 11,156 4.6 100.0% 128,962 100.0%

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34 www.autofile.co.nz www.heiwa-auto.co.nz Trading conditions harder than ever businessman with 40 transport vehicles nationwide, the early days, you had to have people live here who work out of years’ experience in says the industry has changed a $100,000 in the bank before the city and a lot of commuters the industry believes lot in New Zealand over the past you could get a dealer’s licence. come to work here every day. Aconditions are tougher now for four decades. Today, anyone can get a licence “I think our car dealers are used-car dealers than ever. “We have seen changes before for $500 and that has impacted fairly happy. Everyone in business Alan Murrell says the level of and – in the future – there will be the second-hand market always want to make more discounts and accessibility to more, but dealers seem to be able considerably.” profits. However, the market is cheap finance for new vehicles to adapt to them and carry on The population of Rotorua has tough and they do have to work being offered by marques is with business,” he says. boomed in recent years, which hard to make every deal.” having downstream effects on “I can remember the day when brings with it more opportunities Looking at market trends, business opportunities for used- the government reduced the 30 to sell cars. Murrell says: “Electric cars are car importers and traders. per cent tariffs off new cars and “I didn’t see it coming to good for driving in our cities, but “Finance and the cost of we thought it was the end of the be honest, and I don’t think not over long distances in rural borrowing have never been so world. Dealers lost a lot of money anyone saw it coming – even the areas because recharging takes cheap,” he told Autofile. “New that year, but carried on. real-estate agents,” says Murrell. too long. I can see a lot of retired cars come with good warranties “Then used imports came in “The period I was in business people living in cities buying that are often extended to five and wiped thousands off the here there was little population them to cover short distances. years and come with three-year price of new-car stock because growth and we could never But when it comes to replacing service plans. This means they people rushed to buy the cheap convince franchise manufacturers batteries in years to come, they keep customers in their networks imports. That was followed by that we weren’t a big city, such as may find they’re worth more than so they don’t stray elsewhere. the emissions rules coming in. Wellington or Christchurch. what the car is.” That is a marketing ploy by the Suddenly, traders couldn’t buy “We sold a steady number As for the inexorable rise of manufacturers, which is good for various models, so they had to of new cars each month and it SUVs, he says: “If you look at many their franchises.” adapt and change. The industry is was hard work to keep on top small SUVs side-on, they are really Murrell, the owner of Redwood constantly changing. of that. But all of a sudden, our only five-door hatchbacks with Motors in Rotorua until a few “But one of the big things that population took off. Now there’s higher roofs and sit higher off the years ago, adds legislation and has happened over the years has a huge shortage of houses in ground. compliance costs need to be been industry deregulation. In Rotorua – high numbers of “The biggest percentage of worked into business models. the population buying new cars “When it comes to second- is older. As we age, we find it Used Imported Passenger Registrations - 2016-2019 hand cars, under the Consumers hard to stoop and get into low- Guarantees Act you only have 15,500 slung cars. We need higher seats to step slightly out of line – not 15,000 and that’s what SUVs provide. cross one ‘t’ – because the public’s 14,500 People can now buy a new one rights are up there. 14,000 in the mid-$20,000 range, which “Dealers also have to consider 13,500 is the same price as a new car. I the cost of compliance and 13,000 know what I would rather buy – reconditioning. It’s these and 12,500 an SUV.” 12,000 the costs of everything as a There was a boost in first-time 11,500 trader that you have to adhere registrations of used-import cars 11,000 to. It seems to be crippling many last month. They jumped by 4.6 10,500 2016 people and the exchange rate 10,000 2017 per cent in November to 11,674 2018 isn’t helping at the moment. 9,500 compared to 11,156 in same 2019 There are lots of factors.” 9,000 month of last year with Mazda’s Murrell, who still assists Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Axela being the most-popular dealers in the city and helps them model on 618 units.

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www.autofile.co.nz 35 www.mmnz.biz Car imports ‘can move quickly’

orthport can handle Northland’s roads until a rail line is Chain Strategy working group, Meanwhile, Michael Barnett, imported cars and light upgraded, but suggests they could set up by the government, has chief executive of the Auckland commercials in a matter travel at off-peak times. “Northport previously outlined a preferred Chamber of Commerce, describes Nof months, says Port of Tauranga can adequately service Auckland’s option of managing POAL’s closure. moving car imports to Northland chairman David Pilkington – car market, while Tauranga could Pilkington says moving as “stupid”, and that such a decision adding the facility near Whangarei take cars destined for Waikato.” Auckland’s business would need shouldn’t be influenced by politics. can accommodate a vehicle vessel. He adds it is inevitable Ports of to be progressive. “I’d do the easy He says the city is a key destination “I believe cars could come in Auckland Ltd (POAL) should move thing first – take the cars away for freight and any move would leave tomorrow,” he says. “The easiest way because its operations at the 76 – and, as you build capability at Aucklanders having to pay “hundreds to reduce congestion in Auckland hectares on the waterfront can Northport, containers will follow of dollars per head” to transport is to get rid of imported cars. They reap greater value for the city than and Tauranga can take up the slack. goods from Northport, which is part- can quickly move to Northport. as a port. “To operate efficiently, this will owned by Port of Tauranga. All importers need to do is rejig “A year ago they were saying, ‘we require significant investment As for last month, 11,401 used preliminary inspection points for know we have to move but it’s going in road and rail connections to cars were imported into New vehicles somewhere north of the to take time’. Of late, it’s been more, Northland. At the end of the day, Zealand to bring the year-to-date harbour bridge or in West Auckland.” ‘as long as we’re not told to move, we freight owners will continue to total to 129,109. This is down by Pilkington realises the move will carry on business as normal’.” choose the most reliable and cost- 0.9 per cent, from 130,325 units, by will put more car transporters on The Upper North Island Supply effective supply chain.” this time in 2018.

USED IMPORTED PASSENGER VEHICLE ARRIVALS

20,000 19,000 18,000 17,000 16,000 15,000 14,000 2019 13,000 12,000

11,000 2 017 2018 10,000 2015 9,000 2016 2014 8,000 7,000 6,000

4,000 2013 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC

Used Imported Passenger Vehicles By Country Of Export

COUNTRY OF 2019 2018 2017 EXPORT JAN ’19 FEB ’19 MAR ’19 APR ’19 MAY'19 JUN'19 JUL'19 AUG'19 SEP'19 OCT'19 NOV'19 NOV SHARE % 2019 TOTAL 2018 TOTAL SHARE 2017 TOTAL SHARE Australia 277 399 644 487 397 665 531 415 352 301 356 3.1% 4,820 4,183 2.9% 5,540 3.2% Great Britain 101 61 72 52 76 39 54 71 94 77 104 0.9% 801 1,026 0.7% 2,173 1.3% Japan 12,823 7,839 12,259 12,554 14,404 9,997 11,091 11,594 8,517 9,258 10,670 93.6% 120,993 134,510 94.2% 160,822 93.8% Singapore 141 174 144 158 131 117 115 116 157 127 172 1.5% 1,550 1,531 1.1% 1,202 0.7% USA 58 44 71 39 59 58 62 41 61 72 65 0.6% 628 1,108 0.8% 1,419 0.8% Other countries 33 20 46 26 26 37 25 16 14 40 34 0.3% 317 415 0.3% 387 0.2% Total 13,433 8,537 13,236 13,316 15,093 10,913 11,878 12,253 9,195 9,875 11,401 100.0% 129,109 142,773 100.0% 171,543 100.0%

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36 www.autofile.co.nz Hailstorm devastates dealerships usinesses are dealing with Ltd, says the dealership estimates arriving daily from then on, while promoted its products as being the aftermath of a massive about $200,000 worth of damage. three vehicles were sold online free of damage after business hailstorm that wreaked “It’s hard to put a price on it, but as part of a storm special. The dried up in the storm’s wake. havocB in south Canterbury. everything was wrecked. It’s a dealership has been offering pre- Despite the crazy weather, Car traders in Timaru were left huge hit for the company.” accident valuations since the hail Timaru still fared relatively well counting the cost of damage to Twenty-eight of Geels’ cars struck for owners to work out how overall last month when it came stock and premises on November were affected, which he says is much their cars were worth when to dealer-to-public sales of 20 in the wake of the freak weather. better than bigger dealerships going to insurance companies. second-hand cars. They dropped “All our cars outside were that had between 100 and 200 All 10 units on King Street by only two units to 201 – or one damaged,” Kevin Baird, co-owner units damaged. Cars’ yard were damaged with per cent – when compared to Norfolk Motors Ltd, told Autofile. A spokesman for John Shelton Mark Taylor saying an issue is November 2018. However, trade- “Around 20 to 25 cars were Motors says the business was how long it will take for insurers ins there tumbled by 47.2 per affected, so it was quite bad. There “definitely one of the lucky ones” to determine the way forward. cent to 67 from 127. wasn’t much we could have done, because it had a number of The hailstorm left him with no Nationally, dealer transactions maybe save a few. We got no newly imported cars ready to be stock, so he has been sourcing were almost static with 19,062 sales warning we were going to be hit transported from Christchurch replacements. compared to 19,048 in November by a hailstorm, that’s for sure.” when the weather bomb hit. And sales manager Darcy last year, while trades fell by 5.3 per John Geels, of Norfolk Motors He adds it has had stock Campbell says Access Autos cent from 13,206 to 12,506.

SECONDHAND CAR SALES - November 2019

DEALER TO PUBLIC PUBLIC TO PUBLIC PUBLIC TO DEALER NOV ’19 NOV ’18 +/- % MARKET SHARE NOV ’19 NOV ’18 +/- % NOV ’19 NOV ’18 +/- % Whangarei 654 684 -4.4 3.43 1,931 1,981 -2.5 234 275 -14.9 Auckland 6,364 6,965 -8.6 33.39 14,232 14,325 -0.6 5,057 5,088 -0.6 Hamilton 1,428 1,424 0.3 7.49 3441 3,223 6.8 1,055 1,099 -4.0 Thames 294 296 -0.7 1.54 649 705 -7.9 213 190 12.1 Tauranga 859 908 -5.4 4.51 2,227 2,147 3.7 578 552 4.7 Rotorua 454 394 15.2 2.38 941 1,032 -8.8 133 177 -24.9 Gisborne 158 178 -11.2 0.83 394 423 -6.9 58 64 -9.4 Napier 635 676 -6.1 3.33 1,544 1,607 -3.9 403 450 -10.4 New Plymouth 404 410 -1.5 2.12 962 936 2.8 199 207 -3.9 Wanganui 233 265 -12.1 1.22 603 632 -4.6 156 154 1.3 Palmerston North 764 818 -6.6 4.01 1,678 1,632 2.8 665 756 -12.0 Masterton 227 233 -2.6 1.19 504 538 -6.3 126 108 16.7 Wellington 1,526 1,560 -2.2 8.01 3,170 3,088 2.7 1,021 1,037 -1.5 Nelson 293 320 -8.4 1.54 1,047 1,044 0.3 174 198 -12.1 Blenheim 160 186 -14.0 0.84 419 437 -4.1 83 75 10.7 Greymouth 80 62 29.0 0.42 185 177 4.5 33 25 32.0 Westport 6 6 0.0 0.03 37 37 0.0 2 0 200.0 Christchurch 3,157 2,249 40.4 16.56 4,908 5,034 -2.5 1,573 1,839 -14.5 Timaru 201 203 -1.0 1.05 557 546 2.0 67 127 -47.2 Oamaru 31 38 -18.4 0.16 132 149 -11.4 3 3 0.0 Dunedin 679 734 -7.5 3.56 2,042 2,068 -1.3 410 498 -17.7 Invercargill 455 439 3.6 2.39 1,064 1,082 -1.7 263 284 -7.4 NZ total 19,062 19,048 0.1 100.00 42,667 42,843 -0.4 12,506 13,206 -5.3

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www.autofile.co.nz 37 New Passenger Vehicle Sales by Make - November 2019 New Passenger Vehicle Sales by Model - November 2019

NOV ’19 2019 YEAR 2019 NOV MKT 2019 YEAR 2019 MKT MAKE NOV ’19 NOV ’18 +/- % MAKE MODEL NOV ’19 NOV ’18 +/- % MKT SHARE TO DATE MKT SHARE SHARE TO DATE SHARE Toyota 2,171 2,076 4.6 22.5% 17,776 18.5% Toyota RAV4 881 512 72.1 9.1% 4,868 5.1%

Kia 884 592 49.3 9.2% 6,759 7.0% Toyota Corolla 658 739 -11.0 6.8% 5,899 6.1%

Holden 724 965 -25.0 7.5% 6,693 7.0% Kia Seltos 400 0 40,000.0 4.1% 457 0.5%

Mazda 693 754 -8.1 7.2% 8,172 8.5% Mazda CX-5 277 251 10.4 2.9% 3,118 3.2%

Hyundai 680 877 -22.5 7.1% 6,883 7.2% Mitsubishi Outlander 269 176 52.8 2.8% 2,621 2.7%

Mitsubishi 648 627 3.3 6.7% 6,832 7.1% 260 162 60.5 2.7% 2,380 2.5%

Suzuki 536 507 5.7 5.6% 5,959 6.2% 218 282 -22.7 2.3% 3,160 3.3%

Nissan 499 408 22.3 5.2% 4,904 5.1% Mitsubishi ASX 194 247 -21.5 2.0% 2,452 2.6%

Honda 412 443 -7.0 4.3% 4,741 4.9% Nissan X-Trail 194 184 5.4 2.0% 1,905 2.0%

Ford 366 373 -1.9 3.8% 3,890 4.0% Suzuki Swift 184 258 -28.7 1.9% 2,671 2.8%

Volkswagen 272 361 -24.7 2.8% 3,453 3.6% 183 83 120.5 1.9% 1,293 1.3%

Subaru 220 277 -20.6 2.3% 3,325 3.5% Toyota Landcruiser Prado 168 120 40.0 1.7% 1,031 1.1%

Mercedes-Benz 207 211 -1.9 2.1% 2,036 2.1% Hyundai Tucson 163 134 21.6 1.7% 2,283 2.4%

BMW 177 120 47.5 1.8% 1,632 1.7% Hyundai Kona 148 123 20.3 1.5% 1,722 1.8%

MG 133 0 13,300.0 1.4% 573 0.6% Holden Trax 144 121 19.0 1.5% 1,049 1.1%

Audi 126 133 -5.3 1.3% 1,535 1.6% Holden Acadia 140 47 197.9 1.5% 952 1.0%

Skoda 114 119 -4.2 1.2% 1,370 1.4% Honda HR-V 128 135 -5.2 1.3% 1,418 1.5%

Land Rover 83 88 -5.7 0.9% 1,177 1.2% Volkswagen Tiguan 127 182 -30.2 1.3% 1,374 1.4%

Lexus 76 65 16.9 0.8% 824 0.9% Hyundai Santa Fe 126 187 -32.6 1.3% 1,388 1.4%

Haval 72 45 60.0 0.7% 652 0.7% Honda CRV 120 169 -29.0 1.2% 1,400 1.5%

SsangYong 64 32 100.0 0.7% 759 0.8% Holden Astra 118 138 -14.5 1.2% 786 0.8%

Jeep 60 140 -57.1 0.6% 798 0.8% Honda Jazz 118 87 35.6 1.2% 1,404 1.5%

Tesla 58 15 286.7 0.6% 687 0.7% Cross 117 171 -31.6 1.2% 1,065 1.1%

Mini 57 37 54.1 0.6% 709 0.7% Mazda CX-3 104 102 2.0 1.1% 1,006 1.0%

Peugeot 52 43 20.9 0.5% 756 0.8% Toyota Yaris 104 187 -44.4 1.1% 1,590 1.7%

Jaguar 51 45 13.3 0.5% 519 0.5% Hyundai Elantra 100 0 10,000.0 1.0% 203 0.2%

Volvo 44 41 7.3 0.5% 571 0.6% Mazda 99 174 -43.1 1.0% 1,402 1.5%

Porsche 26 23 13.0 0.3% 400 0.4% Holden Commodore 98 159 -38.4 1.0% 1,585 1.6%

Citroen 24 15 60.0 0.2% 268 0.3% Kia Carnival 96 80 20.0 1.0% 366 0.4%

Mahindra 19 0 1,900.0 0.2% 144 0.1% Holden Trailblazer 95 42 126.2 1.0% 498 0.5%

Renault 18 19 -5.3 0.2% 219 0.2% Mazda 92 81 13.6 1.0% 985 1.0%

Isuzu 16 21 -23.8 0.2% 192 0.2% Toyota Camry 87 32 171.9 0.9% 1,036 1.1%

Seat 15 10 50.0 0.2% 169 0.2% MG 3 84 0 8,400.0 0.9% 329 0.3%

Yamaha 9 12 -25.0 0.1% 58 0.1% 83 114 -27.2 0.9% 968 1.0%

Can-Am 8 4 100.0 0.1% 74 0.1% 83 70 18.6 0.9% 847 0.9%

Others 27 45 -40.0 0.3% 602 0.6% Others 3,181 3,994 -20.4 33.0% 38,600 40.2%

Total 9,641 9,543 1.0 100.0% 96,111 100.0% Total 9,641 9,543 1.0 100.0% 96,111 100.0%

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38 www.autofile.co.nz Clean car ideas have ‘flaws’ he government has again proposals mean some models would small light cars with efficient petrol Gibbons adds the prospect come under fire for its attract a levy under the clean-car or diesel engines, so the scheme in of autonomous cars dominating clean-car proposals with scheme and then get a rebate. total is tax-neutral.” our roads had diminished despite theT chairman of Colonial Motor “There are numerous problems, As for EVs, Gibbons describes media enthusiasm. “Today, there’s Company (CMC) describing them but they are indicative of a poorly sales as slow. “Dealerships report a quieter acknowledgement full as “poorly thought out” and structured proposal – not the core significant interest, but that doesn’t level-five autonomy may never containing “numerous flaws”. of the proposal itself. But deep continue into transactions. At occur. Meantime, some of that Jim Gibbons says New down we have to look at how we around $60,000 to $75,000, price to technology is appearing in modern Zealand needs to move towards a can reduce transport emissions. value is a major objection. cars, but not the full revolution “cleaner, greener, safer fleet”, but There will have to be changes, but “At the media and political predicted only a few years ago.” suggests policymakers have “little changes have to be effective.” level, there’s huge interest in EVs, Although CMC’s profits for the understanding” of the local market. Gibbons says changing the mix but this hasn’t translated into year to June 2019 were down by 10.9 Associate Minister for Transport, of New Zealand’s fleet is essential, sales – in part, due to unrealistic per cent compared to the previous Julie Anne Genter, has proposed but will take time. He adds: “New expectations. The price gap fiscal year, as previously reported by a two-pronged approach to cut lower-emission technology is wider between an equivalent petrol Autofile, the company considers it to carbon-dioxide emissions from light than just electric vehicles [EVs]. A vehicle and a new battery electric have been a successful period and its vehicles. A clean-car standard would well-designed feebate scheme can is material and higher than most “second best year on record”. aim to penalise importers of high- be part of a package to influence customers are prepared to pay. “The June 2018 financial year emitters at the border, while a clean- demand to lower emissions. “New models come out with was exceptional as the company car discount would see consumers “CMC has recommended a vastly superior ranges, making the benefited from a very favourable pay fees on higher polluting models feebate proposal whereby a vehicle previous model obsolete. What will economic environment with strong at first registration. is assessed when it is imported and be the impact of cheaper, but short consumer and business confidence,” Gibbons says problems with that tax is shown on the compulsory distance, Chinese EVs? Are full says Gibbons. “In the past year, there the plans “are in the details”. For consumer identification notice at hybrids, mild hybrids or plug-ins was a gradual change of sentiment example, proposed penalties on point of sale. good enough? Only one thing is in the face of more uncertainty. It new-vehicle importers are double “New, used and private imports certain, the new technology will was not dramatic, but impacted on those for used vehicles and private should be taxed at the same rate. cost more to purchase. The cost is our results. importers paying nothing. We recommended the average be exacerbated when the alternative “That uncertainty continues “If there’s going to be a tax on set at a level that’s neutral towards is a cheap second-hand import.” and has impacted on our results emissions, why should second-hand for the first quarter of this year, imports be taxed at half the rate? New Passenger Registrations - 2016-2019 down on the same period last year, Private imports would flourish. 12,000 and shared equally between car The importer would [also] have dealerships and heavy trucks. to pay the tax at the end of a year 11,000 “The total new-vehicle industry and it could be significant. The tax for calendar year 2019 is expected would have to be passed onto the 10,000 to be down on 2018. The total consumer as a general price increase. decline isn’t great. Mid-term “It will not be clear how much 9,000 projections are for numbers to tax applies to a given vehicle. level off at the current level, not Smaller, lower-priced new vehicles 8,000 continue to decline.” are generally price-sensitive. There were 9,641 new cars sold Perversely, smaller, lower-emitting 2016 in New Zealand last month, which 7,000 2017 vehicles will probably become was a one per cent increase from 2018 uneconomic to bring in.” 2019 9,543 in November 2018. The best- 6,000 Gibbons also takes umbrage with selling model was the Toyota RAV4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec the feebate scheme. The current on 881 units.

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www.autofile.co.nz 39 Ranger extends huge lead he has all but supposedly in such trouble. New Commercial Sales - 2016-2019 retained top spot as New “The lucky thing for us is we have 6,000 2016 Zealand’s best-selling ute 2017 Mitsubishi, which has some of the byT selling 907 units last month 5,500 2018 cheapest new vehicles in the market 2019 to bring its year-to-date total 5,000 and the marque really pushes the to 9,021 – 2,340 units ahead of brand, so that shields us a bit.” 4,500 Toyota’s Hilux. Mitsubishi’s Triton is Kirk predicts the motor-vehicle in third spot with 4,993 followed by 4,000 industry may have a small decline

Holden’s Colorado on 4,483. 3,500 over the next 12 months with trading The results come on the back conditions getting hard, “but I can’t of disappointing overall new 3,000 see it being an absolute disaster”. commercial-vehicle sales in 2,500 “There’s a lot of construction November. There were 4,210 units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec work out there and farmers are sold last month for a 12.6 per cent having an incredible season, and decrease from 4,816 during the stocking some used vehicles. the economy generally isn’t it’s those guys who are buying from same month of last year. “The market is losing its doing that well. But from what us,” he adds. “We’re selling a lot of Sam Kirk is sales manager at consistency, but we’re still doing we hear, particularly in Hawke’s the Triton. We’ve done more than Wayne Kirk Prestige in Hastings the numbers overall,” he told Bay, everyone is busy and there’s 200 of them in the Hawke’s Bay this and Napier, which holds franchises Autofile. “Every time you turn on so much going on that I don’t year with most of them going to for Mitsubishi and Jeep, as well as the television or hear the news, understand how the economy is small and medium-sized fleets.”

New Commercial Sales by Make - November 2019 New Commercial Sales by Model - November 2019

NOV ’19 2019 YEAR 2019 NOV MKT 2019 YEAR 2019 MKT MAKE NOV ’19 NOV ’18 +/- % MAKE MODEL NOV ’19 NOV ’18 +/- % MKT SHARE TO DATE MKT SHARE SHARE TO DATE SHARE Ford 994 1,064 -6.6 23.6% 10,125 21.3% Ford Ranger 907 994 -8.8 21.5% 9,021 19.0% Toyota 939 1,023 -8.2 22.3% 8,996 18.9% Toyota Hilux 648 741 -12.6 15.4% 6,681 14.1% Mitsubishi 394 487 -19.1 9.4% 4,997 10.5% 392 487 -19.5 9.3% 4,993 10.5% Holden 315 431 -26.9 7.5% 4,552 9.6% Holden Colorado 312 427 -26.9 7.4% 4,483 9.4% Isuzu 262 304 -13.8 6.2% 2,887 6.1% Toyota Hiace 269 259 3.9 6.4% 2,029 4.3% Nissan 213 286 -25.5 5.1% 3,115 6.6% 213 286 -25.5 5.1% 3,114 6.6% Mazda 184 156 17.9 4.4% 2,200 4.6% Mazda BT-50 184 156 17.9 4.4% 2,200 4.6% Mercedes-Benz 180 173 4.0 4.3% 1,329 2.8% Isuzu D-Max 146 159 -8.2 3.5% 1,699 3.6% Volkswagen 102 128 -20.3 2.4% 1,283 2.7% Mercedes-Benz Sprinter 132 132 0.0 3.1% 789 1.7% Fiat 98 121 -19.0 2.3% 717 1.5% Fiat Ducato 98 121 -19.0 2.3% 713 1.5% Hino 70 67 4.5 1.7% 673 1.4% 87 70 24.3 2.1% 1,103 2.3% LDV 65 159 -59.1 1.5% 1,200 2.5% Volkswagen Amarok 54 70 -22.9 1.3% 624 1.3% 55 60 -8.3 1.3% 787 1.7% Isuzu F Series 54 51 5.9 1.3% 530 1.1% Great Wall 50 30 66.7 1.2% 387 0.8% Great Wall Steed 50 30 66.7 1.2% 387 0.8% Hyundai 46 44 4.5 1.1% 878 1.8% Hyundai iLoad 45 43 4.7 1.1% 838 1.8% Iveco 33 25 32.0 0.8% 323 0.7% Isuzu N Series 45 68 -33.8 1.1% 429 0.9% SsangYong 33 5 560.0 0.8% 435 0.9% Hino 500 37 36 2.8 0.9% 361 0.8% Scania 27 12 125.0 0.6% 234 0.5% SsangYong Rhino 32 0 3,200.0 0.8% 419 0.9% UD Trucks 23 25 -8.0 0.5% 239 0.5% Mercedes-Benz X-Class 27 5 440.0 0.6% 316 0.7% Ram 16 3 433.3 0.4% 142 0.3% LDV V80 24 46 -47.8 0.6% 465 1.0% Others 111 213 -47.9 2.6% 1,981 4.2% Others 454 635 -28.5 10.8% 6,286 13.2% Total 4,210 4,816 -12.6 100.0% 47,480 100.0% Total 4,210 4,816 -12.6 100.0% 47,480 100.0%

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40 www.autofile.co.nz Used vans to be in short supply dealer in South Auckland standing out in our sales across Used Commercial Sales - 2016-2019 believes there will be 1,300 the board. With summertime here, insufficient numbers of we will see a bit more uptake in 1,200 Aused vans available in Japan with chiller stock. Otherwise, it’s down electronic stability control (ESC) 1,100 to us working our customers hard when the final implementation of and letting clients know what’s 1,000 the regulation rolls out in March. coming in. “We’ve got a bit of a wait-and- 900 “About 40 per cent of stuff see period ahead with the new that we’re selling we are getting 800 2016 rules coming in,” says Bill Julian, of 2017 half-margin because we’re having NZ Light Commercials in Takanini. 700 2018 to pay a premium in Japan, rather 2019 Many older commercials don’t 600 than us not getting a good price have ESC fitted and Julian notes Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec here. It’s either do that or you don’t new Toyota Hiaces with the system have the stock. Without that, you installed have only been available trying to fill that in by buying locally. “We’ve also got to pick the truck don’t get sales.” in Japan “for about 20 months”. Julian adds: “Will there be side of things up here because Last month, there were 999 used This means that there will be enough of those vehicles locally? the van side will fall away because imported commercials registered a gap in the used market when it The answer is probably no, but of ESC and we won’t have the for the first time. This was down by comes to used vans for the New hopefully the franchise guys know numbers we normally have. 5.3 per cent compared to November Zealand market, but he will be we’re there to use the stock. “No one vehicle has been 2018 when 1,055 were sold.

Used Commercial Sales by Make - November 2019 Used Commercial Sales by Model - November 2019

NOV ’19 2019 YEAR 2019 NOV MKT 2019 YEAR 2019 MKT MAKE NOV ’19 NOV ’18 +/- % MAKE MODEL NOV ’19 NOV ’18 +/- % MKT SHARE TO DATE MKT SHARE SHARE TO DATE SHARE Toyota 448 448 0.0 44.8% 4,713 45.3% Toyota Hiace 356 341 4.4 35.6% 3,574 34.4% Nissan 212 206 2.9 21.2% 2,395 23.0% Fiat Ducato 50 64 -21.9 5.0% 181 1.7% Fiat 50 64 -21.9 5.0% 182 1.8% Nissan Caravan 49 66 -25.8 4.9% 663 6.4% Isuzu 47 48 -2.1 4.7% 486 4.7% Nissan NV200 47 37 27.0 4.7% 558 5.4% Mazda 46 61 -24.6 4.6% 489 4.7% Mazda Bongo 37 47 -21.3 3.7% 361 3.5% Ford 44 59 -25.4 4.4% 431 4.1% Toyota Dyna 35 32 9.4 3.5% 400 3.8% Hino 34 32 6.3 3.4% 402 3.9% Nissan NV350 35 32 9.4 3.5% 446 4.3% Mitsubishi 33 31 6.5 3.3% 332 3.2% Isuzu Elf 34 32 6.3 3.4% 338 3.3% Holden 14 18 -22.2 1.4% 163 1.6% Nissan Vanette 31 37 -16.2 3.1% 276 2.7% Volkswagen 10 5 100.0 1.0% 102 1.0% 30 14 114.3 3.0% 243 2.3% Chevrolet 9 13 -30.8 0.9% 141 1.4% Toyota Regius 29 31 -6.5 2.9% 310 3.0% Mercedes-Benz 5 8 -37.5 0.5% 44 0.4% Hino Dutro 23 23 0.0 2.3% 266 2.6% Daihatsu 4 1 300.0 0.4% 37 0.4% Ford Transit 22 31 -29.0 2.2% 110 1.1% Hyundai 4 1 300.0 0.4% 19 0.2% Mitsubishi Canter 17 21 -19.0 1.7% 169 1.6% UD Trucks 4 1 300.0 0.4% 22 0.2% Holden Colorado 12 7 71.4 1.2% 85 0.8% Land Rover 3 4 -25.0 0.3% 12 0.1% Nissan Navara 12 6 100.0 1.2% 99 1.0% Mitsubishi Fuso 3 4 -25.0 0.3% 34 0.3% Toyota Toyoace 11 18 -38.9 1.1% 218 2.1% Renault 3 4 -25.0 0.3% 30 0.3% Ford Ranger 10 12 -16.7 1.0% 140 1.3% Suzuki 3 10 -70.0 0.3% 60 0.6% Hino Ranger 9 6 50.0 0.9% 140 1.3% Volvo 3 0 300.0 0.3% 31 0.3% Mitsubishi Triton 9 3 200.0 0.9% 65 0.6% Others 20 37 -45.9 2.0% 269 2.6% Others 141 195 -27.7 14.1% 1,752 16.9% Total 999 1,055 -5.3 100.0% 10,394 100.0% Total 999 1,055 -5.3 100.0% 10,394 100.0%

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www.autofile.co.nz 41 Freak weather causes mayhem

ranchises have been left to “We’ve got a head office in says about 100 vehicles need cent on November 2018, but down count the cost of repairs to Christchurch and can pull stock repairs. “Every one of our vehicles by 9.2 per cent on the previous hundreds of vehicles after from there, so it’s the inconvenience was damaged – from broken month’s tally of 10,622 units. aF storm battered Timaru. of getting stock here assessed and windscreens and panels to tail- When taking into account The severe weather on repaired that’s affecting us. We’ll put lights,” says branch manager Mark the total number of new-car November 20 resulted in hail stones in insurance claims and go through Patterson, who gave employees imports during November minus the size of golf balls wrecking cars’ that process, but most importantly time off so they could check their registrations, there was a decrease bodywork, windscreens and lights, no one was hurt.” homes. in stock by 233 units, which led while some dealers needed to fix up Hyundai South Canterbury Brian Downing, manager of to stock on-hand falling to 81,772 their premises. was also affected with marketing Caroline Mitsubishi, says roof units. That amount means there David Hunt, branch manager co-ordinator Sophie Conroy saying skylights were damaged and the are 288 days’ stock on-hand, or of Holland’s Suzuki Cars, says all stock was hit. “It was hectic and building was flooded. He reports nine-and-a-half months’ supply on the storm hit just after noon and loud. We’ve also had damaged cars more than 30 vehicles were dealers’ yards or in storage – if sales affected all 30 cars parked on-site. and wet carpet in our offices, so “decimated”. All stock on his yard continue at their current rate. “It damaged every car on our we’ve seen better days. It was pretty was hit – even some inside. The amount of stock on-hand is yard and did an incredible amount much dents in roofs and bonnets. As for November’s industry up by 1.7 per cent when compared of damage around the town,” he Our area of town got hit quite hard, statistics, the new-car import to the same month of last year. told Autofile. “I would estimate so we took a decent hammering. total of 9,408 was up by a massive November’s daily average sales we’ve had about $30,000 to $40,000 “Afterwards, we had to get a 20.3 per cent, or 1,588 units, continued to fall to sit at 284, down of damage. The sky blackened over few desks out of the offices and dry on the same month of last year from 298 in November 2018. and started belting down. We had carpets out a bit. We also had a leaky and was up by 16 per cent on Year to date, 95,814 new cars two people standing in a building roof in a couple of places and we October’s 8,122 units. have been imported, while 96,111 and we couldn’t hear each other. need to replace some ceiling tiles.” Registrations of new cars came cars have been registered leaving a I’ve never seen anything like it. South Canterbury Toyota in at 9,641, which was up by one per variance of 297 units.

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

CAR SALES DAILY SALES DAYS VARIANCE STOCK - 12-MONTH STOCK 300 IMPORTED REGISTERED AVERAGE AT HAND November 2018 — November 2019

Nov ‘18 7,820 9,543 -1,723 80,433 298 270 280 Dec ‘18 9,317 7,681 1,636 82,069 296 277 Jan ‘19 7,191 9,942 -2,751 79,318 294 270 260 Feb ‘19 7,787 7,578 209 79,527 295 270 November 2017 — November 2018 Mar ‘19 8,346 8,425 -79 79,448 293 271 240 Apr ‘19 7,978 6,778 1,200 80,648 293 276 May ‘19 7,725 7,624 101 80,749 288 280 220 Jun ‘19 8,810 8,748 62 80,811 285 283 200 Jul ‘19 9,534 7,925 1,609 82,420 285 289 Aug ‘19 9,907 8,506 1,401 83,821 285 294

Days of stock 180 Sep ‘19 11,006 10,322 684 84,505 287 294

Oct ‘19 8,122 10,622 -2,500 82,005 284 289 160 Nov ‘19 9,408 9,641 -233 81,772 284 288

Year to date 95,814 96,111 (297) 140 Change on last month 16% -9.2% -0.3% 0 Change on Nov 2018 20.3% 1.0% 1.7% OCT SEP JUL FEB NOV APR DEC JAN JUN AUG NOV MAY MAR MORE IMPORTED MORE SOLD MORE STOCK

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42 www.autofile.co.nz Slight increase in used car stock he amount of used stock compared with the 11,156 in one got hurt after the destructive of 120 cars on-site were damaged. sitting on dealers’ yards November 2018. The latest vortex of violently rotating winds “Until we get the new roof on the climbed by 1.1 per cent monthly registrations were only ripped the roof off his business in building, we won’t be operating at InT November compared with the up 0.1 per cent from October. the city on November 18. 100 per cent. This was worse for us same month of 2018, but it was Year to date, 129,109 used A video captured by a than the earthquakes. We suffered down by 0.9 per cent on October’s cars have entered the country neighbouring office worker, more damage because of this tally. It currently sits at 28,677 units, and 130,170 units sold, which which can be viewed on Autofile tornado than the earthquakes.” the lowest it has been all year. has reduced stock numbers to Online, shows the moment the Jeff Judd, the owner-operator The increase was largely due 28,677 units. when bits were removed from of Magnum Compliance, rushed to to a climb in the number of used Stock on-hand fell to 74 days his premises in Wordsworth close the roller doors of his Telford passenger vehicles crossing the last month, which is the second- Street, Sydenham, and debris was Street-based business when he border in November compared to equal lowest figure this year and thrown skywards. saw corrugated iron and roofing 30 the previous month. down from the high of 87 days in “I could see the storm coming metres in the air. Fire crews closed There were 11,401 units May and June. Average daily sales from the other side of town,” says Wordsworth Street for about an hour imported last month, an increase of stood at 387 – 26 fewer units per Choi. “It was coming towards us to clear roof debris from the road. 15.5 per cent from October’s total day than in November of last year. and I could see lots of things in the It is believed two people in of 9,875. The number of used-car November certainly was a sky. I was inside the building, heard the city were injured when the imports for November was also 100 wild month when it came to a banging noise and afterward tornado, which lasted for about units more than in the same month New Zealand’s weather affecting saw how much damage had been 10 minutes, struck while it was the year before. the market with Timaru’s giant done. We need a new roof, and also hailing. The storm briefly The stock figures were also hailstones and a tornado in there were some small dents and cut power to more than 1,000 affected by a 4.6 per cent increase Christchurch. damaged windscreens on cars.” properties across Christchurch in registrations – a total of 11,674 Michael Choi, owner of DJ Auto Choi, who has been running DJ and even left part of a tree upside units – during November when Vehicle Importer, is grateful no Auto for 16 years, says about six down in powerlines.

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

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

160 Nov ‘18 11,301 11,156 145 28,351 413 69 Dec ‘18 12,448 11,061 1,387 29,738 404 74 140 Jan ‘19 13,433 11,598 1,835 31,573 399 79 Feb ‘19 8,537 11,129 -2,592 28,981 396 73 120 Mar ‘19 13,236 11,852 1,384 30,365 396 77 Apr ‘19 13,316 10,883 2,433 32,798 396 83 100 November 2018 — November 2019 May ‘19 15,093 13,420 1,673 34,471 396 87 Jun ‘19 10,913 11,177 -264 34,207 392 87 80 Jul ‘19 11,857 12,791 -934 33,273 389 85 Aug ‘19 12,253 12,353 -100 33,173 386 86 60 Days of stock Sep ‘19 9,195 11,630 -2,435 30,738 387 79 November 2017 — November 2018 40 Oct ‘19 9,875 11,663 -1,788 28,950 386 75 Nov ‘19 11,401 11,674 -273 28,677 387 74

20 Year to date 129,109 130,170 (1,061) Change on last month 15.5% 0.1% -0.9%

Change on Nov 2018 0.9% 4.6% 1.1% OCT SEP JUL FEB NOV APR DEC JAN JUN AUG NOV MAY MAR MORE IMPORTED MORE SOLD MORE STOCK

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www.autofile.co.nz 43 Santa’s in for some fun !

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