www.autofile.co.nz JUNE 2021

THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS Government sets aside $302m for incentives Number of low-emissions cars in short timeframe ‘simply does not exist’, says industry association Ports of feebate scheme appears “This initiative will build Auckland to be on course to demand for buyers of zero and boss quits be revived by the low-emission vehicles,” states Agovernment in a bid to make the Wellbeing Budget 2021. “The electric vehicles (EVs) cheaper and funding will enable Waka Kotahi to p 14 internal combustion engine (ICE) implement the system and is being cars more expensive. held as a tagged contingency while On top of this, the Ministry of design work is completed.” Vision for p 16 Transport (MoT) has released a Once details of the scheme are greener discussion document that outlines finalised, legislation will have to be future potential policies, such as banning tabled and go through parliament. imports of petrol and diesel cars by James Shaw, Minister of 2035 and the use of light vehicles Climate Change, says the policy with ICEs in 2050. will have a “broadly similar design” Automotive organisations to the feebate scheme with more p 22 broadly support the idea of feebates, information on its structure due to Electric dreams at but the Imported Motor Vehicle be released over coming weeks. Auto Shanghai Industry Association (VIA) says plans His office has labelled the $302m to cut transport emissions overall will fund as the clean-car discount fail because of a lack of availability of The government has unveiled major funding – the official name for feebates and a green paper to boost the uptake of suitable models. low-emissions vehicles that would subsidise the cost of Meanwhile, the Motor Industry low-emissions vehicles by lifting the Association (MIA) says some form of proposal is on its way back. price of more-polluting models. incentive for consumers is needed Grant Robertson, Minister of It’s unclear how closely the Michael Clark’s to get more Kiwis to switch to EVs. Finance,​ says $302 million has latest approach will follow what racing ‘obsession’ NZ First torpedoed the feebate been put aside for an unnamed was first proposed by Julie Anne last year when it was part of the policy “to implement a regime to Genter in 2019 when she was coalition government, but last incentivise the uptake of low- Associate Minister of Transport. month’s budget indicates the emissions vehicles”. Under her policy, a rebate of p 24 [continued on page 4]

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DIRECTORS EDITOR factor in all businesses Brian McCutcheon Darren Risby [email protected] [email protected] ph. 021 455 775 We have partnered with SmartTrade, New Zealand's premier business-to-business Do our bureaucrats lack a sense of reality? JOURNALISTS rewards programme, to reward you for every shipment made with us. Darren Wiltshire Sue Brebner-Fox ho would Legacy about the All [email protected] [email protected] ph. 021 0284 7428 Earn points that can be used to get virtually any reward you want!* have ever Blacks’ success. Matthew Lowe [email protected] guessed this If we could all be DESIGNER globalW pandemic would disciplined enough Adrian Payne MOTORSPORT bring about the market to focus on managing [email protected] Mark Baker [email protected] factors we see today? stock, we could avoid Among all the changes some of the crazy Autofile magazine is also available online as a readable file or downloadable as a PDF. that have happened, I moves towards what the Subscriptions are available at Autofile Online – www.autofile.co.nz. WALLIS DUMPER recall the saying, “just “new normal” will be in Back copies are also available on the website. Managing director because everything is Subaru of New Zealand retailing cars. Dealers Copyright: Published monthly by 4Media Ltd Vehicle Shipping General Freight Vehicle Tracking Shipping Schedule Rewards Programme different, it doesn’t mean and outlets will be a All statements made, although based on information believed to be anything has changed”. big part of the customer journey accurate and reliable, cannot be guaranteed, and no liability can be This government’s drive for a fair while yet. We all need accepted for any errors or omissions. Reproduction of Autofile in towards electric vehicles (EVs) will to manage manufacturers’ and print or digital format in whole or part without written permission, whether by copying or any other means, is strictly forbidden. create some real challenges for customers’ expectations. Load it >> Ship it >> Track it >> Clear it >> Deliver it consumers and our industry over While Covid-19’s impacts have All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) the next few years. bought around some change, I I’m not sure if our current crop wonder how long it will be until of politicians can actually read, someone goes crazy and starts but you don’t need to be a genius accumulating stock. Suddenly, to work out 2025 is an impossible everyone will jump on the market- target to achieve their carbon- share bandwagon and chase Vehicle Inspection NZ dioxide reductions. As such, it’s numbers not “sustainability” and, another tax grab. by that, I mean profit. You can evidence this by I’ve always had a customer- Entry Certification looking to international markets, focused modus operandi and, in which sell as many cars in a month my world, dealers are customers Specialists that every brand in New Zealand too. Striving for a mutually – plus all importers – retail in a year. successful and profitable business These huge-scale markets can’t is important. Current supply get there, yet our bureaucrats issues will have ongoing impacts, suggest we can be world leaders. so other than the new-model I fear they lack a sense of reality impetus every brand enjoys, we’ll and scale impact. Smaller bespoke all have frustrated clients. marques, such as Subaru, through In this digital and social world, to massive commodity brands like no supply issues are a secret. Toyota and the European giants, Trying to buy furniture results in at cannot deliver the dream this least a three-month wait. So why government wants, so the next few can’t customers spending their years will be interesting for us all. second largest chunk of disposable Our industry is always exciting income have positive but realistic and change is just what happens experiences and wait to collect cars as part of automotive life. We need of their choice? The challenge is to negotiate our way through, or forward selling and planning ahead. • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges around, whatever is delivered. No matter what happens it jacanna.co.nz/rewards • Registration & relicensing • Exhaust emission testing People and stock management should be fun, so enjoy the ride. Tel: +64 9 825 0888 are always key factors in business, That reminds me, it’s probably and I live by leadership lessons time to order that new Triumph 0800 GO VINZ VINZ.CO.NZ in James Kerr’s best-selling book Speed Twin. *Terms and conditions apply. www.autofile.co.nz 3 news [continued from page 1]

up to $8,000 would Submissions on the government’s green 2040, resulting in an extra 100,000 t paper – Transport Emissions: Pathways To Net have been available to Zero By 2050 – close on June 25 EVs each year until 2050. This is people buying a newly unlikely to occur without any imported car deemed to “The conversion of measures or incentives.” be efficient. Those opting government fleets also means The green paper also touts for high-emitters would more demand for EVs, which biofuels as important for reducing have faced fees of up to will start flowing through pollution from the light fleet, $3,000. into the second-hand as well as being used for public The budget has also market and make them transport and aviation. committed $16m over four more accessible for years towards implementing everyone,” he says. STOCK SHORTFALL the clean-car import standard. VIA backs measures to cut transport This aims to ensure distributors CUTTING EMISSIONS emissions but warns the pace of of new vehicles and importers of Besides the financial commitments change being discussed by ministers used vehicles supply products with Shaw says money will be used in last month’s budget, the does not match what’s in the market. progressively lower carbon dioxide for leasing or buying EVs across all government has published a green David Vinsen, chief executive, (CO2) emissions year on year. departments and organisations. paper looking at ways to eliminate says: “They’re still hanging their Labour hopes this will Only 1.3 per cent of their more than transport emissions. hats on achieving goals by contribute to broader climate- 14,000 vehicles are currently electric. Michael Wood, Minister of replacing ICE vehicles with EVs change emissions reduction targets, He hopes the decision to lower Transport, released the document regardless of availability and and adds the funding “supports fleet emissions will, in turn, stimulate – Transport Emissions: Pathways To affordability for the public. Waka Kotahi to build and operate broader demand for such cars and Net Zero By 2050 – on May 14. “We’re supportive of government necessary systems” to run it. make them cheaper and easier to He says the proposals outlined efforts with regard to emissions It has earmarked $80m to help acquire by the wider population. in it are not government policy, but but have concerns about the way the public sector become carbon Shaw also announced details officials want to spark a national they’re going about it. We are not neutral by 2025, including a pre- last month of a $13.1m package to conversation “about the changes yet convinced their proposed policy budget announcement of an extra purchase or lease 422 EVs across we all need to make”. initiatives will work. $42m to increase low-emissions the state sector and install more The paper suggests phasing “There appears to be a lack of vehicles in the government’s fleet. chargers over the next 10 years. out the importation of ICE light consideration and understanding vehicles by 2035 and banning the for what the industry can supply use of them in 2050, adopting and what the public want.” biofuels in light vehicles and Vinsen adds VIA recently had buses, and electrifying the public- discussions with Dr Rod Carr, transport bus fleet by 2035. chairman of the Climate Change It says 67 per cent of our Commission, about the stock transport emissions come from situation for EVs. light vehicles and describes “His response was ‘we should decarbonising that fleet as crucial look harder’ to find supplies of Specialists in for reaching a zero-carbon target used EVs. We had to point out pre‑shipment inspections by 2050. that no matter how hard we look “This requires a rapid transition the number of low-emissions cars in Japan & UK that will not be achievable the commission and government without significant government is seeking in a short timeframe  Full border inspections intervention,” the report adds. simply do not exist. Officials have modelled four “There’s not enough for us for  Authorised MPI inspections “pathways” with different mixes of even one year’s supply of those kinds  Authorised NZTA inspections approaches. The most ambitious of used vehicles coming out of Japan predicts travel using light vehicles and the UK at the moment.”  Odometer verification would fall by 57 per cent in 2035, Vinsen notes a large proportion and 27 per cent of the light- of the funds Labour has budgeted  Pre-export appraisal vehicle fleet would be electric or for assisting the transition to EVs battery powered. will be taken up with getting  Vehicle history reports They note the government is such vehicles into government planning to introduce a fuel- departments. efficiency standard – the clean-car “Increasing the number of EVs import standard – to increase the in the government fleet should supply of cleaner vehicles. have been done years ago. These “Additional measures and measures will provide a heap of incentives to accelerate the uptake public servants with a driving JEVIC NZ of EVs should also be considered. experience in EVs and they may The model assumes there will be then consider buying one for 09 966 1779 www.jevic.co.nz an increase in vehicle imports from personal use. 

4 www.autofile.co.nz news

t “The government’s actions Domestic CO2 emissions by transport mode fund, which Crawford describes a will stimulate demand because “timely initiative”. they will buy new EVs and those “When this fund was originally vehicles will flow into the used Heavy fleet Light fleet set up, it was constrained and was and ex-lease markets. However, if only trying to encourage EVs,” he they were serious about making told Autofile. changes to the overall fleet it 23% “What has now been done is should have been done ages ago to morph it into wider transport at pace and at volume.” emissions-reduction programmes. A delegation from VIA met with Rail 1% This is more holistic in that the fund 3% Wood for the first time on May 20 Shipping can now be used to trial projects to briefly discuss looming changes 67% across a range of platforms.” in the transport sector. Vinsen says 6% As for the MoT’s green paper, it was a good meeting, with a frank Aviation Crawford believes “it’s long-winded exchange of ideas and suggestions. and could have done with being “It was a chance to introduce half in length”. VIA and the used-vehicle industry. He adds: “But if we want to It immediately followed a session truly make our city spaces more The Ministry of Transport says domestic travel by light vehicles accounts for 67 per cent of with the NZTA team working on transport GHG emissions and 13 per cent of New Zealand’s total gross GHG emissions sustainable, it will take changes processes for implementation of across a range of matters to be the fuel-economy standard.” a regime to incentivise the uptake “The challenge will be for realised. He adds that VIA and the motor- of low-emissions vehicles has the government to get climate- “As for a ban on ICE vehicles vehicle industry understand what been particularly welcomed by change projects under way and on our roads by 2050, that will the government is trying to do to the MIA. the ETS carbon tax provides more have to be debated. We think the meet the Paris Climate Agreement. It has consistently advised certainty around funding streams MoT has got this wrong because Vinsen notes work on the the government that if it wants for these activities.” who’s to say with advances in feebate proposal will start again to accelerate the uptake of In addition, the low-emissions technology that a carbon-neutral after Labour’s budget. low-emissions vehicles, then it vehicle fund has been renamed fuel will not have been developed He laments action on such a needs to address their lack of as the low-emissions transport for ICEs by then.” scheme has not happened sooner, affordability – at least in the short and is encouraging the government to medium term – compared to to keep industry and consumers their equivalent ICE vehicles. fully informed of any proposals. “Some $302m has been set “From a personal point of view, I aside for a rebate scheme as an think they should have focused on incentive for EVs and the MIA has the feebate system from the start,” been on-record that there needs to says Vinsen. be incentives, not just sticks,” says an independent choice “During our time with the David Crawford, chief executive. minister, we suggested the “This confirms Minister Wood’s QUEST INSURANCE OFFERS: government needs to have a decent earlier announcement that to bring public-education programme to in the clean-car import standard, Mechanical Breakdown Insurance explain what’s happening around he would look to support that – backed by AA Roadside Assist the fuel-economy standard, feebate policy with an incentive scheme. schemes and why. We welcome feebates and eagerly Mechanical Breakdown Insurance “In the absence of that, anything await the details.” for Electric and Hybrid Vehicles they do isn’t going to be effective The MIA has also praised several and people will just be put off when other initiatives in this year’s budget Comprehensive Motor Vehicle Insurance the price of everything goes up. and one of them relates to the Consumers will blame dealers when emissions trading scheme (ETS). Lifestyle Protection Insurance they can’t find the car they want, or “Minister Shaw has managed to if they do, they will have to pay a lot get the revenue from it dedicated more for it. to climate-change issues and Credit Contract Indemnity Insurance “The policies will not be initiatives,” says Crawford. “That successful as they are and will end means money from the ETS will up being the vehicle equivalent no longer go into a consolidated Guaranteed Asset Protection Insurance of KiwiBuild. The government has fund, which is a great idea and grand ideas, but the execution of long overdue. If you are a forward thinking motor vehicle trader, or financier, these strategies will be poor.” “Existing funds from it will now looking for a trusted vehicle insurance partner, call Quest. go to a particular purpose and that’s ACTION WELCOMED climate change. It means action Contact: Simon Moore 021 149 2266 The provision to establish a and initiatives can be planned with [email protected]  tagged contingency to implement some form of certainty.

www.autofile.co.nz 5 news Extra action on illegal traders n industry organisation Possible illegal traders are describes the level of often contacted by MBIE following enforcement taken by exchanges of data with Waka theA government against illegal Kotahi New Zealand Transport car dealers as “considerable”, but Agency under agreements warns it is likely to be only “the tip overseen by the Office of the of the iceberg”. Privacy Commissioner to establish Official statistics obtained who may need to be registered. by Autofile show the Ministry Rather than writing to hundreds of Business, Innovation and of operators every year, Everett says Employment (MBIE) wrote to 647 allowing enforcement agencies to possible unregistered traders in the issue instant fines may be more 2019/20 financial year. Individuals selling more than six cars effective and provide a more a year need to be on the Motor Vehicle Action taken by the ministry’s Traders’ Register powerful deterrent. trading standards division resulted “Unregistered trading has been in 16 convictions and netted nearly an issue for a long time and it’s $80,000 in fines during that period. Data matching and monitoring always been a niggle in the industry

In the previous year, 608 possible 2018/19 2019/20 because of the low enforcement illegal traders were contacted and Letters to possible unregistered traders 608 647 rates under the MVSA over the past 35 convictions obtained. 17 years,” he told Autofile. The Motor Trade Association Cases referred for investigation 441 275 “It’s good MBIE is doing (MTA) has welcomed the Ongoing monitoring 150 214 enforcement and tracking change enforcement, but believes more of names and monitoring sales Referred to consider prosecution 66 31 can be done. activity, which is helping identify Tony Everett, sector manager Ongoing investigations 80 0 unregistered traders, but it’s easily

– dealers, describes the number There were 35 convictions against unregistered traders in 2018/19 resulting in a total of $238,500 in fines. got around because people can of people contacted by MBIE in The largest penalty was $18,000. There were 16 convictions in 2019/20 and $79,925 in fines with the largest stop operating and simply trade being $10,000. Some of the year-on-year decrease was due to a range of factors, such as Covid-19 resulting recent years as considerable and in some sentences being delayed. Source: MBIE in their partner’s name or their equivalent to about 20 per cent of children’s names. those registered to sell vehicles. Register (MVTR). At the end of April, should have to demonstrate some “The system boils down to “The numbers the ministry are there were 3,082 dealers on it. understanding of consumer law private individuals or Waka Kotahi writing to are high and, in one Registered traders must follow and the rules of compliance under seeing someone has bought and respect, good on them,” he says. the rules of the Motor Vehicle Sales the MVSA.” sold too many cars. MBIE then “Equally, it suggests unregistered Act (MVSA), which Everett says In contrast, he points out writes to that person and often trading is a prevalent activity and are weaker than the previous laws people whose businesses fall under decides not to prosecute because this might be the tip of the iceberg. dealers had to operate under. the Second-hand Dealers and the cost to prosecute through the “However, the numbers MBIE To join the MVTR, people only Pawnbrokers Act, such as antiques courts is considerable. ends up prosecuting are quite low. need to provide their name, service or scrap metal dealers, need to “It would be much better, and A lot of suspected unregistered address and pay an annual fee of demonstrate knowledge of the a much cheaper alternative, if traders appear to simply be told about $600. industry, their legal obligations enforcement agencies could issue they will be watched for a while, Everett suggests the registration and be vetted by the police before a fine without going through the which says to me that it’s perhaps requirements need bolstering if they receiving a licence. court system. too expensive to prosecute them. are to go some way to addressing Everett adds the laws for “It seems a bizarre scenario that “For those who get prosecuted, the problem of illegal sellers. motor-vehicle traders seem in some sense we either need a it looks like a bit of a wet bus-ticket This could include having to disproportionately light given much more rigid regime and tighter fine and the size of the fines are provide an address for a defined used-car sales generate billions of consequences for unregistered unlikely to deter such behaviour. place of business that meets any dollars every year. traders, or do we just flag it entirely “Unregistered traders will likely local-council bylaws and being With about 600,000 passenger and say, ‘consumer beware’.” continue selling cars because they forced to display a certificate of and commercial units sold privately While unregistered trading may calculate they can make more registration at all times. per annum, he calculates if the remains a problem, Everett money by selling without being on “The regime has gone from average second-hand vehicle acknowledges it has also provided the register and then just pay any one that was maybe too tight to fetched $5,000 it means the total the industry with a channel to “get fine when it lands.” one that’s too loose because now value of transactions would come rid of old clunkers they do not want”. Any business or individual you simply put your name on a in at about $3 billion. “I think industry people have dealing more than six vehicles a list and there’s no specific entry “It’s a very big piece of stopped moaning about it and now year – which Everett describes as a requirements,” notes Everett. commerce for New Zealand and accept it’s an activity that goes on,” “generous threshold” – needs to be “At the very least if you’re for something so big I’m staggered he adds. listed on the Motor Vehicle Traders’ going to get into trading, you that it doesn’t get more attention.” “Dealers may lose some

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www.autofile.co.nz 7 news [continued from page 6]

business because of unregistered Kotahi, the police and Trade Me. t traders, but those people are Source of complaints about unregistered traders Regardless of the origin of mostly operating in the lower FINANCIAL YEAR FROM CONSUMERS FROM AGENCIES complaints, he states part of his price-end of the market so they role is to ensure there is a fair 2020/21* 82% 18% may not be competing that and level playing field for anyone strongly with registered dealers. 2019/20 79% 21% wanting to sell cars. “In my opinion, the damage is He warns unregistered sellers 2018/19 95% 5% more in the consumer arena because often fail to provide accurate it’s consumers who ultimately miss 2017/18 94% 6% information about what they are out on legal protections.” *as of March 12, 2021. Source: MBIE selling and are making it difficult for consumers to access the MVDT for a COURT ACTION Trading Standards secured or a consumer who has made determination if problems occur. Data-matching information leads 35 court convictions totalling contact following a referral. “There should be no advantage to most of the action taken by $238,500 in fines in 2018/19, The proportion was about gained by those who do not wish MBIE against car dealers who are which was up from 18 successful one-in-20 during the 2018/19 and to trade legally and are non- operating outside of the rules. prosecutions the previous year. 2017/18 financial years, and it is compliant. Stephen O’Brien, MBIE’s “We believe the increased unclear what exactly is behind “This may result in loss of registrar of motor-vehicle prosecutions during 2018/19 the change. confidence in the motor industry traders and manager of Trading have been because of increased However, O’Brien suggests the as a whole and reflects badly on all Standards, says if inquiries awareness of the registration surge in prosecutions through compliant, registered traders.” suggest a subject is trading while requirements of the MVSA,” adds 2018/19 might have helped raise O’Brien notes individuals and unregistered, it will take further O’Brien. “This is particularly the case awareness of the requirements businesses need to remain aware action with the aim of achieving when there has been local media under the MVSA. of the regulations at a time when compliance by way of registration. coverage of these prosecutions.” Quarterly meetings between trading outside of the traditional “In the first instance, we agencies responsible for the motor- method of in-person transactions write to the trader, advising of REFERRALS INCREASE vehicle regulatory system over the at physical car yards is growing. the requirement to register, and Complaints about unregistered past two years may have also been “This is due to the increased use continue to monitor them,” he notes. motor-vehicle traders have a factor. of alternative methods of sale over a “While getting traders to increasingly been referred to MBIE “We hope the increase of variety of platforms, such as online, comply with the act voluntarily by other government agencies prosecutions has led to increased that make it easier for individuals is the primary objective, in cases in the past two years, rather than awareness of the statutory to sell six or more vehicles in a year when a trader does not engage coming directly from consumers. requirements for registration and and be unaware of the requirement with the registrar, or refuses to Figures released to Autofile by will motivate those that should for registration or deliberately try to comply, an investigation and the ministry reveal a major shift in be registered to take action by avoid registration. prosecution may be used to the source of alleged grievances seeing the potential results of “All those who carry on the achieve compliance.” about dealers accused of flouting their non-compliance.” business of a motor-vehicle trader The highest penalty from the rules. Organisations that may learn need to comply with the MVSA among the 16 dished out in MBIE says about one-in-five such of complaints include the Motor independent of the method used.” 2019/20 was a $10,000 fine for an complaints since mid-2019 have Vehicle Disputes Tribunal (MVDT), Information on the unregistered trader selling 16 cars. come directly from another agency the Commerce Commission, Waka requirements and how to register 

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t as a trader, either as an individual operating as a trader or pursue the or a company, are available online Complaints to MBIE about unregistered traders matter through the courts.

at www.motortraders.govt.nz. WHAT HAPPENED 2018/19 2019/20 2020/21* Maximum fines for breaching the MVSA are $50,000 for an individual Found to be compliant 15 13 14 INVESTIGATING CLAIMS and $200,000 for a company. In the current financial year, which Further action taken 16 10 4 “Trading Standards’ preferred ends on June 30, Trading Standards approach is to educate in the first Inquiries ongoing 0 0 16 had received 37 complaints as instance,” says O’Brien. “We also of March 12 about unregistered Unable to proceed due to lack of evidence 12 2 3 strive for consistency in approach motor-vehicle traders. There *as of March 12, 2021. Source: MBIE so businesses can have confidence were 25 similar complaints in the in interactions with us.” previous reporting period. or removed from monitoring. REGISTER RULES While unregistered trading O’Brien says after receiving such “If a person being monitored is The MVTR holds information about remains a problem, the issue of a complaint, staff make inquiries suspected of further unregistered registered traders and their business. registered dealers acting as private to determine if the subject is trading and on investigation this O’Brien says: “Anyone can sellers has not caused many compliant with the MVSA. is substantiated, any previous search the MVTR’s online register headaches in the past few years. “If inquiries suggest a subject warning or correspondence will for registered traders legally able to Details of such complaints aren’t is trading while unregistered, we be taken into consideration for trade and traders who are banned.” readily available because they are will take further action with the escalation of compliance action to As registrar of motor-vehicle recorded as unregistered trading. aim of achieving compliance by prosecution,” says O’Brien. traders, Trading Standards “Anecdotally, such complaints registration.” “The frequency of these checks accepts or refuses applications for to the MVTR are very rare with only After advising a trader of the depends on our investigation registration and removes those one recalled instance in the past requirement to register, their capacity at the time, but we aim disqualified from registration. It also couple of years,” says O’Brien. annual vehicle sales numbers are to check individuals or companies investigates odometer tampering “I would also note the primary regularly checked using data from on the ‘monitoring’ list on at least a and those trading illegally. course of redress for consumers Waka Kotahi. quarterly basis.” Following any investigation, the affected by registered motor- This allows Trading Standards Anyone deemed to have registrar can send a warning letter, vehicle traders acting as private to identify if that person’s activities achieved compliance with the MVSA issue an infringement notice, cancel sellers would be a complaint to the need to be more closely investigated is taken off the monitoring list. registration, ban someone from Commerce Commission or MVDT.”



www.autofile.co.nz 9 news Risk posed to vehicle imports

n industry organisation new and existing models. sector as several brands are is warning proposals “The proposed timing of this for manufactured in Australia and to introduce a tougher 2023 is too soon and will almost “The proposed must also meet the ADR. emissionsA standard for new vehicles undoubtedly mean most brands will “Australian-built heavy vehicles being imported from 2023 is too be unable to bring in some models. timing will almost cannot move to Euro 6 until soon and will limit what cars many “Nevertheless, the MIA is undoubtedly mean Australia does. We are liaising with marques can bring in. currently consulting with its our members about when we can The Motor Industry Association members about when they think most brands will shift to Euro 6 for the heavy fleet. (MIA) has expressed its concerns they can supply Euro 6.” be unable to bring “When it comes to timing, after the Ministry of Transport Crawford states about 70 per some manufacturers will be able to (MoT) started consultation on plans cent of light vehicles in this country in some models” comply but others may not be able to raise the bar for what’s known as comply with Australian Design – David Crawford, MIA to do so for some time.” the Euro 5 standard to Euro 6. Rules (ADR), which are currently set A government document The MoT emailed the association at Euro 5 emissions standards, and in February this year about on May 24 outlining proposed New Zealand represents a “very tiny” the proposed clean-car import changes to the Land Transport Rule: share of overall global sales and is standard reports that cabinet has Vehicle Exhaust Emissions 2007. classed as part of the Australasian agreed to update the exhaust David Crawford, chief market by manufacturers. emissions rule by the end of 2022. executive, told Autofile the MIA “If Australia does not become It plans to take a phased approach is not opposed to the measure in Euro 6 compliant, then most of our on used and new light vehicles to principle, but the suggested timing brands are unlikely to be able to meet Euro 5 and 6 respectively, and is a “significant issue”. comply with Euro 6 until Australia equivalent standards from other He says: “Our members need does, which is reported to be 2027.” markets, this decade. a sensible timeframe for this to Crawford adds there are also It adds: “New Zealand presently happen when it comes to their challenges for the heavy-vehicle allows Euro 4 used vehicles to be [continued on page 12] Ministry seeks change he government is a few industry stakeholders to committed to updating the respond to a survey surrounding vehicle exhaust emissions possible dates for implementation Trule before the end of next year of more stringent standards to and wants input from industry gauge what is possible for industry.” before firming up any proposals. He explains the standards and Current regulations were dates mentioned in its survey introduced in 2007 and have not are as yet unconfirmed but are a been adjusted since 2012. starting point for conversations Ewan Delany, manager of with industry. environment, emissions and MoT communicated to VIA adaptation, says the MoT is and the MIA in February 2021 that keen to work alongside the car updates would be made to the industry to introduce “achievable rule by the end of 2022. Delany emissions standards”. says the survey sent out last month It has initially proposed lifting the is consistent with that timing and standard for used imports to Euro 5 content. from January next year and to Euro 6 “The contents were not a for new vehicles from 2023. policy announcement, but rather a “Cars, utes and vans we use discussion to inform policy. We are looking for NZ-new Fords and Mazdas. every day are a major source of “After engaging with industry, Ideally 2012 or newer with less than 150,000km. air pollution,” Delany told Autofile. we will provide further advice to the If you have something you'd like priced, contact Jason: “The cars sold today will, on minister regarding a change to the 0274 133 222 | [email protected] average, be in the fleet for the next vehicle emissions rule. Any proposed 20 years, so it’s vital we take action amendments – should they go now to turn the tide against the ahead – would require regulatory flood of high-polluting vehicles. change and thus public consultation “At this stage, we have asked of proposed changes.”

10 www.autofile.co.nz www.autofile.co.nz 11 news [continued from page 10]

imported [a standard banned 11 24 asking it to survey members Euro 5 and 6 or their equivalents “There’s no need to bring in years ago in Europe] and Euro 5 about introducing the Euro 5 were not significant steps forward Euro 5 and 6 regulations because for new vehicles [banned six years standard for used imports from from Euro 4, apart from for diesels. we will move to those standards ago in Europe].” January next year. “Officials decided it wasn’t worth naturally as stock withdraws Euro 6 became mandatory in The proposal led to robust doing anything at that time because from the market because of ESC Europe in 2015, and equivalent debate at the it would cause too [electronic stability control] rules standards are now incorporated in association’s annual much disruption and the fuel-economy standard North America, India and China. general meeting in “There’s no and aggravation for running in parallel.” Less than 25 per cent of Euro- Auckland on May need to bring the market, and any VIA sent an email update to standard based vehicles entering 26 and members of improvements on members on June 1, stating it New Zealand in 2020 met Euro 6, the executive team in Euro 5 and vehicle emissions aims to ensure any government says the government. have since been in 6 regulations would be marginal – proposals are “reasonable” and do Another issue being explored frequent discussion because we with the exception of not threaten the used-car market. by the MIA is what will need to with the ministry diesels.” It notes the survey from the MoT be done to ensure fuel is of an over the matter. will move to The government is a way of signalling government adequate standard to be used with David Vinsen, those standards is currently officials’ line of thinking, to Euro 6 vehicles. VIA’s chief executive, naturally” exploring a range encourage industry feedback Crawford says petrol in New says it held talks with – David Vinsen, of options to help and was not intended to be an Zealand needs to have the correct MoT staff on May 28 it reduce harmful announcement of official policy. aromatic blend to meet Euro 6. and June 1 to clarify VIA emissions, including VIA has reassured members it “Currently, the Marsden Point the purpose and greenhouse gases. has been advised the MoT does not Refinery is unable to make petrol aims of the survey Vinsen says the intend to end the importation of at or below this level. Imported request. MoT raised the idea used vehicles, or vastly reduce the petrol is available at the required “We’re working of reviewing exhaust supply of used vehicles from Japan. blend levels.” on the emissions emissions again Vinsen adds: “The vehicle Crawford notes the MIA has had standards and two years ago and a exhaust emissions rule is back a brief discussion with the Imported discussions with senior government on the table for review and we Motor Vehicle Industry Association officials will continue, official at the time will start going through the (VIA) on the issue and may take a co- but we don’t expect anything to “confirmed what had gone before”. regulatory process of consultation, ordinated approach to government happen urgently,” he explains. “He told us any changes they submissions and collaboration to “when it makes sense to do so”. “When the exhaust emissions would like to see would be with reach the best possible outcome rule was being looked at in 2004 regard to diesels and tailpipe testing for NZ Inc, which is the country, the USED IMPORTS ISSUE and 2005 ahead of its introduction of the in-service fleet, which are environment, market and therefore The MoT also emailed VIA on May in 2007, it was acknowledged that both initiatives we would support. the industry and consumers.” Call for fresh approach on emissions he Motor Trade Association government to have more clearly Epps says the industry needs explains Epps. “Also, we will be ire (MTA) is calling on the signalled what actual proposals will to be confident such a plan can be competing with other jurisdictions government to boost be coming. Its failure to do so has implemented smoothly because a a MITO Automotive for low-emissions vehicles that do consumerT demand for low- created uncertainty in the market – lot of work will be needed to get become available. emissions vehicles through for the industry and public. people into EVs. “If our government is looking education and incentives. “It would appear whatever “It is good to see the for a transition, it needs to do It also wants more emphasis this $302m is for will be government putting something to raise awareness about Apprentice placed on tackling pollution contingent on the NZTA words into action the existing fleet and emissions, caused by the existing fleet and coming up with a working regarding its own such as in-service testing. recognition of the issues around credit and penalty system procurement “Many consumers cannot afford for your workshop and receive accessing cleaner vehicles when for the clean car-import policies, but what is to buy electric cars, so they need overseas stock is severely limited. standard, and we disappointing is the to be educated and incentivised Greig Epps, advocacy and assume this will include lack of education for on how to get into progressively * strategy manager, says the incentives. consumers pointing to better vehicles. a $1,000 subsidy each month MTA applauds the $302 million “Once the agency has Greig Epps the lower-emissions “Then there is scrappage, which contingency in last month’s that system set up, we pathway.” needs to be looked at because budget for what Grant Robertson, understand it will help car importers He adds there are major issues some 30 per cent of the fleet is Minister of Finance, says is “to to track emission averages in 2022 when it comes to what the car already over 15 years old. implement a regime to incentivise and for them to plan for following industry can source from overseas. “We need a fresh approach to Visit mito.nz/train to make your smartest investment yet the uptake of low-emissions years. Importers will also need to “For example, there are get people into newer, safer and vehicles”. assess how to work within any currently less than 200,000 EVs in less-polluting cars, instead of just However, Epps believes it incentive scheme, but only if they Japan and we can’t be sure when mandating low-emissions vehicles *Apprenticeship Boost is a payment to employers of apprentices. Receive $1,000 per month in apprentices’ first year and $500 per month would have been better for the have more details about it.” they will be brought to auction,” be imported.” in their second year until August 2022. Free fees for automotive apprenticeships until December 2022. Terms and conditions apply. 12 www.autofile.co.nz MIT/AF/0014A a MITO ireAutomotive Apprentice for your workshop and receive a $1,000 subsidy each month*

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Back in black Industry movers he Imported Motor Vehicle members who have contributed. STACEY KEARINS has been appointed as Industry Association (VIA) Their support has enabled the director of automotive at Smart Loyalty NZ, which has delivered an operating engagement of some high-value specialises in customised loyalty and reward surplusT of $47,074 for 2020/21 consulting support to shape recent solutions for the motor-vehicle sector. compared to a deficit in the VIA submissions.” Kearins has been promoted into the role after previous financial year. Stephenson says the board is being programme director. She originally joined the Chairman Chris Stephenson aiming to make the association company, which is part of the Marque Group, in 2018. describes this as a “significant financially sustainable so it’s able to She started as a business development manager working with improvement”, which has been meet the needs of its members. dealerships before becoming group account manager for OEM achieved through increased “A focus for VIA over coming partners. subscription income and reducing years will be to grow its income Kearins gained experience in the automotive sector prior to joining operating expenses. through attracting new members Smart Loyalty, working for MITO as an industry training adviser for “The $47,000 is made up of two while maintaining a close eye on almost four years. parts,” he explains. “Approximately operating expenses. $30,000 is an operating surplus “The board acknowledges that TONY GIBSON is stepping down as chief executive being the difference between as VIA makes progress towards that officer of Ports of Auckland Ltd (POAL) at the end membership subscription and goal, from time to time additional of June. operating expenses.” expenditure may be required.” He says it has been a “difficult decision” to make, Stephenson adds the balance of The association’s total revenue describing POAL as “full of wonderful people doing $17,000 is income remaining from a in 2020/21 came in at $509,995 amazing things”. special member contribution fund compared to $478,596 in the Gibson, pictured, adds: “Over the past few months, there have been that’s ringfenced for VIA activity previous reporting period. persistent and sometimes personal attacks on me. This focus on me is relating specifically to the proposed Revenue from membership and damaging to the company. clean-car import standard. sponsorship contributions rose to “It is taking our focus off what is important – delivering change. I “The board would like to thank $450,237 from $399,255. can’t let that continue, so for the sake of our people and their good work, I’ve decided to step down.” Deputy CEO Wayne Thompson, who is also chief financial officer, will F & I FINANCE SPECIALIST step up on an interim basis until a new chief executive is appointed. GRANT BARLING has been appointed to the newly The key components of this role are to provide our customers with finance and insurance options when they created role of general manager of Maserati Australia purchase a vehicle. Ultimately you will be required to and New Zealand. drive sales of finance and insurance products that assist He has been promoted from national sales our customers with their purchase. manager with Glen Sealey, former chief operating Grant Barling Key to your success within this role will be previous officer, moving within Ateco. experience in selling finance and insurance packages Barling has more than 30 years’ automotive preferably within the automotive industry. But if you are experience and joined the group in 2019 following looking for a change in pace and have a background in senior roles with luxury brands including Audi and banking, finance or insurance with a proven track record then now is the time to change gears! Lexus. He began his career with Toyota. Sealey now heads up Renault for Ateco across Does the idea of working for a well-established, the Tasman. progressive Kiwi company where your opportunities are The French marque joins LDV, Maserati, Ram Glen Sealey endless appeal to you? Trucks and Upfitter in Australia, alongside Alfa Romeo, Fiat, Jeep, Why we will choose you: Maserati and Ram in New Zealand, with Ateco. pA lending and insurance background in automotive, banking or finance preferred ELTON GOONAN has been appointed as chief p Proven ability to network effectively and maintain good executive officer of MotorSport New Zealand after relationships with partners helping steer the organisation through challenges p High motivation with a competitive edge posed by the Covid-19 pandemic. p High level of detail and accuracy with good The 46-year-old previously held the position in an understanding of regulatory requirements acting capacity for nearly 12 months following a coronavirus-induced pOutstanding customer service and communication skills restructuring in June 2020. p Confidence and the ability to build trust and rapport Goonan’s experience includes 15 years based in Europe competing p Strong organisational skills with the ability to meet in a variety of classes, and being employed to manage circuits and deadlines in a fast-paced environment organise events around the world.

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oyota has unveiled a concept of the first car in its beyond Zero (bZ) series asT it prepares to launch 15 zero- emissions vehicles by 2025. The marque describes the SUV as “the hero” in its shift towards electrified powertrains, with seven bZ models due in the next four years. “Adding the first battery electric vehicle [BEV] to our range continues our journey of offering choices for customers while helping New Zealand realise a zero- carbon future,” says Neeraj Lala, The bZ4X concept chief executive officer of Toyota NZ. “Toyota has been vocal in our “BEVs will eventually become automotive market before 2025. support of the government as a sustainable means of mobility. The new EVs will be we transition to a low-emissions However, it will take time as the manufactured in China with most economy and we’re excited at the energy mix, battery technology parts coming from local suppliers. prospect of bringing our first pure and infrastructure are still being GM’s strategy aims to arrest a battery electric car here next year.” developed.” recent dip in sales following more Lala says the bZ4X will “not Toyota says it wants to realise than two decades of growth in a be an affordable BEV for all Kiwi “mobility for all” on a global scale, country that contributes nearly households and businesses” with a focus on small-capacity, short- one-fifth of its global profits. initially because of research and distance and ultra-compact BEVs. It The US-based carmaker has yet development cost recovery. also plans to establish new business to reveal how many new models “Our focus will also be on how models such as commercialisation of it’s planning to launch in China we can transition it into the used- battery reuse and recycling. over the next five years. vehicle market as quickly as possible The bZ series is aimed at “China will play a crucial role in so all Kiwis can become familiar widespread use in larger markets making our vision a reality,” says chief and enjoy this new technology,” he where there is greater demand executive Mary Barra, referring to adds. “This is why we see affordable for such vehicles and a plentiful GM’s bid to create a future of “zero hybrids and plug-in hybrids as supply of renewable electricity. crashes, zero emissions and zero transitional technology and a bridge These models will be based on congestion” through electrification to a sustainable future.” BEV-dedicated platforms that can and smart-driving technologies. Lala notes Toyota NZ’s average be used with multiple variations in The company plans to invest carbon dioxide (CO2) emissions are terms of size and design. cent in 2030 and 80 per cent by 2035. more than $31b in electric and 165.9g/km – nearly seven grams Because it’s difficult for Toyota Besides launching new EV automated vehicles worldwide lower than the industry average. to prepare such a wide range of models over the coming years, the within the next four years. He says the company is focused choices on its own, the company marque will also seek to develop on introducing lower-emission is working with partners boasting more advanced batteries that CIRCULAR PRINCIPALS products with the marque currently expertise in different fields. extend single-charge distance. Volvo Cars has pledged to reuse offering 55 electrified models The bZ4X has been developed The move is part of a $63.9 batteries from its EVs as it hopes worldwide. with Subaru and adopts the billion investment over the next to achieve annual savings of about By 2025, Toyota’s global line-up e-TNGA BEV-dedicated platform six years to enhance the research $165 million and reduce its CO2 will be expanded to 70 models of created by both companies. The and development of automotive emissions from 2025 by adopting all-electrified vehicles, including aim is to sell the vehicle in Japan electrification and safety features. circular-business principles. hybrid, plug-in hybrid, battery and and China with global sales due to Ventures include closed-material fuel-cell EVs. start by the middle of 2022. TAKING ON TESLA loops for emission-heavy materials, “Our priority is to offer affordable General Motors is preparing to do such as steel and aluminium. It will vehicles that meet the needs of EXTENDING RANGE battle with Tesla after revealing 40 per also remanufacture, repair, reuse all New Zealanders,” says Lala. Honda will only sell electric and cent of its model launches in China and refurbish parts. “This means a range of powertrain fuel-cell vehicles by 2040 as it plans over the next five years will be EVs. Volvo is investigating how options to suit consumers’ needed. to ditch petrol and hybrid cars. It also plans to produce more batteries age when reused in Like hybrid technology 30 years It hopes to increase the SUVs, and roll out intelligent second-life applications and ago, adoption and affordability will proportion of zero-emissions driving and connectivity learning more about their take some time. vehicles in its global sales to 40 per programs in the world’s largest commercial value post-car use.

16 www.autofile.co.nz ev focus Converting fleet to boost market

he government has making them more accessible. to buy 25 EVs. EECA estimates government must not take its foot unveiled spending of “This announcement is a this project will reduce its carbon off the accelerator when it comes to $13.1 million to purchase significant step towards our goal emissions by about 350 tonnes transport emissions. Tor lease more than 400 electric of carbon neutrality in the public over the next 10 years. She says this latest funding vehicles (EVs) for the state fleet. sector within five years.” Five other agencies, which will will help DOC remove 490 tonnes It will also install extra charging The funding also invest money from of carbon-dioxide equivalent per infrastructure in a bid to accelerate will come from the their own budgets, will annum from its fleet emissions – a its plans for a carbon-neutral public $200m State Sector receive funding for EVs 19 per cent drop compared to the sector by 2025 and for more low- Decarbonisation Fund, and associated charging 2018/19 financial year. emissions cars to filter through into administered by the infrastructure. They are: “Combined with other DOC New Zealand’s used-vehicle sector. Energy Efficiency and  The Ministry of Māori vehicle-emission reduction “Introducing 422 EVs to the Conservation Authority Development – $493,000 programmes, the total projected state fleet will reduce carbon (EECA). to buy 16 units. reduction is 26 per cent once all emissions by around 11,600 tonnes It includes $5.1m to  Statistics NZ – $108,000 the EVs are on-road.” Dr Ayesha Verrall over the next 10 years,” says James help the Department to buy four. The carbon-neutral government Shaw, Minister of Climate Change. of Conservation (DOC) purchase  Scion, a crown research programme was announced in 2020. “Over the life of a typical EV, 148 EVs and charging equipment. institute – $96,000 to lease Agencies are required to emissions comparison with an Kainga Ora, which provides three EVs. measure and publicly report on internal combustion engine aren’t rental housing for Kiwis in need, will  Ministry of Education – $84,000 their emissions, and to offset any even close. They are also much are receive $1.1m to purchase 40 EVs to lease three units. they cannot cut by 2025. cheaper to run than petrol cars. and Northland DHB will get $4.3m  Hawke’s Bay DHB – $29,000 to They are also compelled “The conversion of government to lease 150 units. The NZ Defence buy one EV. to purchase battery electric fleets also means more demand for Force will receive $1m to secure 32 vehicles (BEVs), or plug-in EVs, which will start flowing through EVs by leasing and buying. Dr Ayesha Verrall, Acting hybrids if a BEV is inappropriate into the second-hand market There is also $758,000 for ACC Conservation Minister, says the for the proposed use. genevagenevaFINANCEFINANCE

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www.autofile.co.nz 17 tech report Courage needed from government

preface this opinion piece the government to will evidently bear and precision in targeting emitters. by stating these are my own exempt you. the weight of this It would be simple and views and VIA will submit its Why are there transition. If this is true, inclusive. The only lever necessary Iresponse through official channels. exemptions? Why fairness isn’t even a is the price of carbon. If the current The simple acknowledgement of should businesses in consideration. Stating it system isn’t creating enough the money waiting for anyone who non-favoured sectors is doesn’t make it so. incentive to change, then raise the could provide a hypothesis that pay a higher rate for As for shared price. Every industry should be better fits the data leads me to trust emissions? There mobility, there has included and it precludes the need the consensus on climate change. are non-methane KIT WILKERSON never been a barrier to for any other policies. And that’s the long-term cost of producing milk and Policy adviser and analyst car-pooling other than Since it would be ubiquitous, [email protected] failing to mitigate climate change meat alternatives. Why, Kiwis like their private there would be no confusion about will far outweigh the cost of then, are biogenic spaces, so the message what changes need to occur in our addressing it now. sources of methane exempt? is just tax those who don’t do it. personal behaviour and business I say this having no specific How is an argument that “real” In other words, force poor people decisions. background in climate science, but milk is the best any different to car-pool – probably in older Unlike regulations and I do have an advanced degree in to someone saying internal vehicles – by ensuring they will be standards that may not be the sciences. combustion engines (ICEs) unable to afford to do otherwise. particularly fit for purpose, there The government’s green paper make for the best vehicles? Both What’s most frustrating about is no question of efficacy or goal. – Transport Emissions: Pathways arguments are identical in form this is there’s a solution that It will also drive research and to Net Zero by 2050 – reads as if and function, but how far would addresses many of these issues and development into low-to-no written by a climate-change denier we get in arguing ICEs should be that’s a universal carbon dividend. emission alternatives by making trying to justify the bare minimum exempt from GHG targets? A meaningful carbon tax is them more competitive over time. needed to meet legal obligations. Fairness is a key aspect because It reads like the government every person and business would has taken all ideas in transport “Most adults would receive more via pay for their choices. Most adults that have had some favourable would receive more via dividends international response and dividends than they spend on a carbon tax” than they spend on a carbon tax. squeezed them for all possible This is more palatable than telling emissions savings, no matter how I don’t mean this as an attack on generally accepted as the best way all Kiwis they have to bear the stick unrealistic or irrelevant due to agriculture. But it is a high-emitting to force behavioural and product for the next 30 years. overlapping savings. industry and since the government shifts, but price increases tend to Finally, this policy could be How will reducing congestion report I’m writing about has impact low-income earners more. extended to promote efficiency in reduce emissions if we are all caveats about every mention If, however, the government was the electrical grid, manage data driving electric cars? And the of targets with a disclaimer to equally apportion the money and even offset some risks related targets? Uninspiring, unequally exempting biogenic methane, it’s collected to adult New Zealanders, to widescale implementation of applied and inconsistent. the obvious case for my point. that makes a tax progressive. automation. Change is necessary. We need The car industry is being told In fact, instead of a tax, a carbon I may be starting to sound like our team of five million to alter their that if we cannot provide low-to-no dividend could be considered the a scratched record, but I’m not the behaviour. We need companies to emitting products, we shouldn’t price we are paying each other only one. The carbon dividend has move to alternatives that are low-to- exist. Why isn’t every industry being for the use of the commons – our been endorsed by many economists, no greenhouse gas (GHG) emitting. told that and why isn’t everyone shared resources. including 45 Nobel Prize winners. This requires a consistent being held to account equally? A carbon dividend has surgical Unfortunately, there is one message that’s not happening. We That, of course, brings us to precision. It has all the benefits unsurmountable barrier. This solution are told GHGs are bad and we all poor people. They haven’t been of a tax, including a low cost of would require courage from our need to do our bit, unless you’re in a primary benefactors of the current implementation estimated at 10 per government to develop something favoured industry or have convinced carbon-based economy, but cent of managing a single standard unique for New Zealand.

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18 www.autofile.co.nz news Market for used cars rebounds

urners Automotive Group were down from $37.2m a year has reported record earlier and were hit by a “reduced earnings and anticipates dealership footprint and the effects Tits profits will further increase of the February/March lockdown in during the current financial year. Auckland”. A resilient used-car market Page says the 2 Cheap Cars helped it to rebound strongly from business held up well in the last the disruptions of Covid-19 when financial year and proved to be lockdowns effectively reduced resilient in the face of Covid-19. It the 2020/21 financial year to a sold 8,207 units in the past financial, 10-month trading period. down by 2,812 on the previous year The company’s net profit when it retailed 11,019. before tax (NPBT) for the reporting NZAI says sales of electric period came in at $37.4 million, vehicles and plug-in hybrids which was 29 per cent more than almost doubled in the past 12 Grant Baker David Page in 2019/20. Underlying NPBT at months and accounted for more the end of March was $34.3m, up automotive market to remain provide NZAI access to capital than one-fifth of trade in the first by 19 per cent. supply-constrained for 12-18 in the future for expansion, in three months of 2021, up from Net profit after tax was $26.9m, months due primarily to impacts particular to grow the vehicle eight per cent at the same time a an increase of 28 per cent, while on the new-car supply chain. finance business.” year earlier. revenue slipped 11 per cent to Other forecasts include that NZAI says sales volumes at its As for NZ Motor Finance, its $296.5m over the same timeframe. new lending in the finance dealerships in the second half of the loan book grew by 138 per cent in Turners says its response to business will be strong, arrears financial year recovered to levels the 2021 financial year, an increase the impacts of the pandemic, will continue to improve and seen in the 2020 financial year. from $1.6m the year prior to $3.8m including acceleration of its digital insurance policy sales will be Second-half revenues of $35.5m thanks to 461 loans in total. plans and cost-management buoyant. strategies, saw profits rise in three New Zealand Automotive of its four segments. Investments (NZAI), meanwhile, Profit grew by 50 per cent in has surpassed its financial insurance, 30 per cent in finance predictions to report underlying and 11 per cent in automotive NPAT of $3.8m for the year ending retail. The only decline was in the March 31. The total is slightly above credit management business – previous guidance of $3.3-$3.7m. down by per cent. Actual NPAT slipped to $3.2m, Grant Baker, chairman, says: a drop of $1m from the end “Initiatives worked on over the of March 2020, and includes A better deal for the past two to three years are really $700,000 in costs to list the starting to come together and company in February. most importantly are delivering Revenue and income for the Motor Vehicle Trade results, even during the disrupted 2021 financial year was $66.1m, period of 2020. down $10.3m from a year ago nFlexible credit facility available to fund “Our company is in a real with NZAI estimating $7.4m was vehicles in transit or on your yard position of strength and we feel lost was because of coronavirus. confident in our growth plans. Closing five less-profitable nAccess to stock when you want to buy, Margin expansion and market- dealerships reduced revenue by not only when you have the available cash share gains are helping deliver an estimated $6.9m. Those losses n bottom-line growth we knew was were offset by growth of $3.3m Free up your capital and grow your business possible.” in 2 Cheap Cars and an extra April and early May this year $700,000 from its finance arm, NZ nOnly available to registered have seen a continuation of the Motor Finance. motor vehicle traders positive momentum Turners has David Page, chief executive, enjoyed over the past 10 months. says: “With a proven track Its April 2021 financial results record, strong governance and were “materially ahead” of April management in place, NZAI is 2019, which is a more comparative focused on implementing its period because there was no strategic roadmap for growth. Ph: 09 320 5646 pandemic to contend with. “The direct listing will support Contact us now to find out more www.autobridge.co.nz The company expects the NZAI’s long-term growth and

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

June 11, 2004 June 3, 2005 Soft stand taken on new law Compliance change delayed The enforcement of new laws for registered Land Transport New Zealand decided against making motor-vehicle traders was too soft, according to year of manufacturer (YoM) mandatory for use during automotive industry associations. the compliance of used imports in a move being After transitional licences ended on March heralded as a temporary victory for the industry. 15, vendors not registered as dealers under the The change was due to come into force on July 1, new Motor Vehicle Sales Act had been operating but importers were instead allowed to continue listing illegally, and were liable to fines of up to $50,000 for individuals and the year of first registration in cases when the YoM $200,000 for companies. wasn’t provided. In May 2004, Autofile reported that trader numbers were about Frank Willett, the IMVDA’s technical services manager, said the Ministry 400 less than the 3,100 originally forecast by the Ministry of Economic of Transport (MoT) was reviewing the requirement to mandatorily capture Development (MED). At the time, representative Margaret Vos said the year or manufacture. the ministry remained confident more vendors would register, but The reason for the review was that the decision should tie in with mentioned no specific plans to enforce that. an intended upgrade of the motor-vehicle registration system with a David Vinsen, head of the Independent Motor Vehicle Dealers’ recommendation from the MoT expected in July 2005. Association (IMVDA), said it was time to get tough. In the past, three trade organisations – the IMVDA, MTA and Motor “The MED is taking the easy road of targeting registered traders Industry Association (MIA) – held the collective position that the year of first for little things like SIN cards when there are people selling cars from registration was the critical date for purchasers and YoM had little relevance. kerbsides and car fairs without being registered at all.” Chief executive Perry Kerr said the MIA backed that opinion, despite Bridget Cheeseman, of the Motor Trade Association (MTA), said: “The agreeing with officials to start entering the YoM into the transport registry lack of evidence of enforcement suggests processes are not in place to fix centre’s database in February. the problem.” June 12, 2009 June 9, 2006 Great Wall hits our shores Provincial Finance folds Ateco Automotive NZ, distributor for Chinese Thousands of investors were nervously waiting manufacturer Great Wall Motors, had confirmed a July for information as Christchurch-based Provincial launch for the brand in this country. Finance Ltd struggled through difficulties. “We’ve appointed six dealers throughout New Autofile reported in May 2006 that it had Zealand on both the North and South Islands, and pulled out of vehicle lending and was forced to they are ‘substantial names’ we think will represent suspend dealing in its fixed-interest debentures. the brand well for us,” said general manager Lawrie Malatios. Perpetual Trust Ltd, trustee for the debenture “At this stage we’re partnering with dealers who have fixed stock issued by Provincial Finance, placed the latter and CarSave, its south operations and experience in the new-car industry.” Auckland-based used-vehicle company, in receivership. At the second stage of the launch, Malatios said the company Provincial was the second finance company to collapse with close ties would look at expanding the dealer network. Full details of businesses and common shareholders with an affiliated major used-car operation. stocking the brand would be released when their dealer product The company’s receivers were understood to be working with Alan launches were complete. Hubbard, of South Canterbury Finance, who had offered to buy about $23 Malatios added that Ateco was absolutely committed to Chinese million worth of loans from Provincial. brands and there was huge demand from New Zealand dealerships However, Peter Baynes, chief executive of Perpetual Trust, said the to add more models to their yards. Ateco also had plans to import the sum needed to lift the company out of receivership would depend on a popular China-made Chery. valuation of subsidiary Tasman Pacific Insurance. If that value fell short, The first shipment of Great Walls due that month had been sold to more cash would be needed. dealers, which Malatios said was exciting at such an early stage. Don’t go searching for news. Let the news come to you.

Subscribe now to INSIGHTfor twice-weekly updates www.autofile.co.nz/subscribe 20 www.autofile.co.nz Trader registration rules fall short

t’s extremely easy to become Unfortunately, that given many are likely Prosecution action is expensive a registered motor-vehicle did not happen with to be older vehicles. and resulting fines in the past trader and in the MTA’s opinion unregistered trading Put those figures have been very low. They would Iit is way too easy. still remaining a together and it reveals certainly have not covered legal There is no industry knowledge problem today. a market worth costs let alone any proceeds or experience requirements. It’s Most industry somewhere between earned by the participant in the simply a case of put your name on a participants have long $1.8 and $3 billion. process of trading illegally. list. This basic approach, sometimes given up complaining Regardless of where Add it all up, and it is an activity referred to as “negative licensing”, about the situation. TONY EVERETT you put the value of that’s perhaps worth dabbling in was the strategy employed by the The industry dips out Sector manager – dealers, the average sale, you and therein lies the problem. At the Motor Trade Association government when the current on some business, but would think it is still an risk of mixing our metaphors, make Motor Vehicle Sales Act (MVSA) ironically it is buyers who are activity big enough to attract more it worthwhile and they will come. 2003 was designed. perhaps the biggest losers because substantive enforcement scrutiny. A final point to ponder – is our At the time the legislation unregistered traders conveniently Most sellers will hopefully be consumer-law regime working to was introduced, the established avoid legal obligations. genuine private sellers, but some best effect in the case of older, low- industry was promised vigorous If there’s anything wrong with a won’t. The Ministry of Business, value cars? enforcement activity. Yeah, right. car sold by a registered dealer, the Innovation and Employment (MBIE) It could be argued established The MVSA followed on from the customer has comeback through warned 131 sellers in the 2019/20 traders are effectively “legislated 28-year period controlled by the consumer-law protection to get year and 31 of those were up for out” of selling older, low-cost Motor Vehicle Dealers’ Act 1975. problems fixed at the dealer’s cost. possible prosecution action. vehicles simply because the That regime was much If unregistered, buyers will feel The threshold is not particularly related consumer-law obligations tougher with entry requiring they have no rights because the tough – selling more than six are so open-ended the make trade defined capital input, operation Consumer Guarantees Act doesn’t vehicles per annum might put you financially unrealistic. “Private only from an industry-approved apply to private sellers. If the on MBIE’s radar. But what about sellers” can sell the same car place of business and personal gearbox is stuffed, for example, the others an individual may have with no liability under consumer entry qualifications, including then the purchaser feels he or she put under the name of a partner or legislation. demonstration of experience in the must fix it. their associates. The industry finds its way out industry and awareness of relevant About 70 per cent of all used All a bit too hard, perhaps, for by releasing those unwanted legal obligations. motor vehicles – passenger and an organisation that likely has little older vehicles into the “grey At the time, some commentators commercial – in the existing fleet manpower and hence not much market” – the arena frequented by surmised tight entry controls were a are sold “privately”, which is about enforcement capacity. unregistered traders. barrier to people joining the industry 600,000 units in a normal year. The situation could be better Is that right by consumers? No, and if requirements were relaxed the For the sake of the discussion, monitored. But, as often found in but markets have a habit of finding incidence of unregistered trading let’s assume an average value areas of commerce, low levels of the gaps where the law leaves the would disappear. of say $3,000 to $5,000 per unit, enforcement are a real problem. door open.

HELPING DRIVE YOUR BUSINESS The MTA brand is consistently associated with expertise, reliability and trust. Talk with us today about the benefits of MTA membership.

0800 00 1144 | mta.org.nz

www.autofile.co.nz 21 shanghai motor show

Marques expand green offerings t

Audi’s A6 e-tron concept

ars powered by lithium- play if there is a wall or some other ion took central stage at suitable surface to project onto. Auto Shanghai with those Csporting combustion engines ELECTRIC DEBUT failing to turn as many heads. Genesis has confirmed it will be Officially known as the entering the EV market with its Shanghai International Automobile Electrified G80 riding on an optimised Industry Exhibition, the biennial version of the marque’s existing show alternates with Beijing as platform rather than Hyundai’s China’s big annual event. Whereas the normal A6 is a means it develops 350kW of power dedicated E-GMP architecture. Among the models that made bona-fide sedan, the e-tron variant and 800Nm of torque thanks to its As such, it features the same their debuts were the A6 concept, has been designed from the twin-motor set-up – one on each dimensions as its petrol and diesel- which is likely to be the next ground up as a sportback. axle – and it can clock up “more powered counterparts. chapter in Audi’s e-tron story. The biggest indication of its than 700km” on a single charge. Given it will be a fully-fledged Riding on all-new premium electric nature is the gaping but Less potent range-minded member of its model portfolio, it platform electric (PPE) enclosed single-frame grille, which versions will emerge at some stage looks almost identical to the internal- underpinnings, the production- is supplemented by three air vents with a single motor on the rear combustion versions except for a spec vehicle will be the first model on either side and below to help axle, while an RS6 e-tron is “very unique set of more aerodynamic of its new electric portfolio. cool the drivetrain, battery and likely” to materialise. alloys and a solid crest grille. With production of PPEs due brakes. With the battery able to be Sporting electric motors on to start in the second half of 2020, With a high belt line, pumped- charged at up to 270kW, 300km of both axles, the electric G80 almost designers say the concept’s styling up rear haunches and lighting range can be added in 10 minutes matches the existing 3.5T flagship comes in at 95 per cent of the signatures, the A6 e-tron builds on via a DC fast-charger, while 25 in terms of power. It develops production version with only small Audi’s design philosophy of giving minutes’ charging will take the 272kW compared to 279kW, but details to be changed to comply its cars “muscles”. battery from five to 80 per cent. betters the petrol on torque with a with roadworthiness rules. The 100kWh lithium-ion battery In terms of performance, Audi meaty 700Nm against 530Nm. says “even entry-level models The V8-like outputs will propel designed for efficiency will the Electrified G80 from 0-100kph accelerate to 100kph in less than in a claimed 4.9 seconds – 0.2 VEHICLES WANTED seven seconds”, while dedicated seconds faster than the 3.5T. performance versions will stop the While an exact battery capacity DEALERS BUYING NOW clock in “well under four seconds”. has yet to be quoted, Genesis says To help kill time while the its first-ever EV should be able battery charges, a series of in-built to cover more than 500km on a Automotive excellence since 1993. projectors – also used for various single charge according to the Your ocial Audi, Porsche, Jaguar, Land Rover and Volvo dealer warning indications for the driver NEDC standard, while its native and other road users – can display a Korean EV certification has its console-style game for occupants to range at about 427km. 

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22 www.autofile.co.nz shanghai motor show

Lexus’ hybrid ES MG’s Cyberster concept

t Recharging can be done at up evolve the range to offer alternative, heritage but more importantly efficiency, more technology and to 350kW, resulting in the battery sustainable powertrains.” building on our cutting-edge enhanced connectivity”. being charged from 10-80 per cent By 2025, Lexus globally plans technology and advanced design,” Already a segment leader and in 22 minutes. to introduce 20 new or improved says Carl Gotham, director of SAIC best-seller in China, the X-Trail To help extend the range as models, including more than advanced design in London. is seen as a vital part of Nissan’s much as possible before charging 10 electrified battery, plug-in or “Sports cars are the lifeblood four-year transformation plan to is required, Genesis has fitted the hybrid electric vehicles (EVs). of MG’s DNA and the Cyberster is a prioritise sustainable growth and Electrified G80 with a “disconnector Davis adds the flexibility of hugely exciting concept for us.” profitability in key markets. actuator system”, which can low-emissions cars, which do not The model is due to be deactivate and reactivate one of need to plug in to recharge, means VITAL TO PLANS launched there in the second half the electric motors when maximum the company doesn’t expect an Nissan has revealed its all-new X-Trail of this year before being rolled out power or grip is not required. immediate jump to BEVs in the crossover as it strives to maintain the to other global markets in 2022. Other range-boosting and New Zealand market. model’s success in China. Nissan’s latest e-Power sustainable touches include the “We will continue to improve The company is aiming to electrified powertrain technology solar roof, which helps boost our fuel efficiency across all meet the needs of consumers in and the all-electric Nissan Ariya energy efficiency, natural dye for powertrain options meaning that that country “who aspire for more also featured in Shanghai. the leather upholstery and “forged as drivers upgrade over time, their wood” trim recycled from the next new Lexus will be more fuel furniture industry. efficient than their last one.” Full equipment specifications The new ES received its global and pricing are yet to be revealed. premiere on April 19. It boasts a VEHICLES WANTED But Genesis has confirmed its redesigned front grille, change of camera-based adaptive suspension interior colour, improved multi- system will feature from launch. media system and advanced safety Volkswagen technologies. HYBRID OPTION Toyota A model in the Lexus line-up will ‘BOLD STATEMENT’ only be available in New Zealand MG gave its Cyberster concept its Mercedes Benz with a hybrid powertrain. world debut in China, with the The marque revealed the new- two-door, two-seater sports car Nissan look ES, which comes with petrol or drawing a number of cues from hybrid powertrains, at the start of the MGB Roadster. Skoda Auto Shanghai 2021. It features round headlights, After first appearing in 1989, a slim grille design, interactive Lexus the ES has sold about 2.65 million “magic eye” headlights that open units globally. when switched on, and a “laser Kia Andrew Davis, general manager belt” LED strip down the side. of Lexus NZ, says only offering the The concept’s profile has a Citroën hybrid version here reflects the flattened “kamm tail” rear and the increasing preference of consumers LED tail-lamps are integrated flat for such vehicles. into the vehicle’s rear. Peugeot  “With 70 per cent of Lexus sales An intelligent all-electric We are always looking to purchase late model now being hybrid, we are providing architecture will enable a range a range of models that suit the of 800km and deliver acceleration NZ NEW CARS AND COMMERCIALS market and is a stepping stone to from 0-100kph time of less than help us realise a zero-carbon future. three seconds. “We offer a hybrid option in “The Cyberster is a bold miles motor group almost all of the models we have statement that looks strongly available, and will continue to into MG’s future, touching on our PAUL CURIN 0274 333 303 [email protected]

www.autofile.co.nz 23 motorsport Driving formula for success ichael Clark has what category celebrated its 50th he describes as a anniversary. Its importance in “selfish obsession”. A the progression of young locals Mlifelong motorsport enthusiast, is underlined by the continued he wants to see the current support of Toyota Gazoo Racing groundswell of Kiwi talent NZ, which offers the winner of the continue to roll across the world’s national championship a test in an premier racing categories. FT-50 or FT-60. There is an opportunity, he The 2021 TRS champion, says, for those with a passion Matthew Payne, cut his circuit- for motorsport to help ensure racing teeth in Formula Ford New Zealanders are able to go before his breakthrough international. championship win. From his home base in Drury TRS drivers Billy Frazer and – a short drive south to the Kaleb Ngatoa also stepped up Pukekohe and Hampton Downs from the most recent NZ Formula circuits – Clark highlights the next Ford season, of which Frazer was wave of fast locals following the crowned 2019/20 champion. wheel tracks of the “two Scotts”, “Most of our racing stars did at Michael Clark is a lifelong motor-racing fan and a go-to source of information about the sport for media Dixon and McLaughlin, in Indy. least a season of Formula Ford on New Zealand, he says, is The Formula Ford category At many of its northern events, their way up and it’s a perfect step punching well-above its weight holds a special interest for Clark, championship grids of the newer on the way to an international in motor racing. For example, who says it’s an essential step Formula Ford cars are bolstered career,” says Clark. Brendon Hartley and Earl Bamber on the career ladder for aspiring by the Historic Formula Ford A tall, imposing figure in the are in their glory days with New Zealanders, enabling category, adding depth and a pits and paddock, he has loved Porsche at Le Mans and in the them to make a strong reminder of its motorsport ever since he can World Endurance Championship. smooth transition heritage. remember. He has a special passion Chris van der Drift and Matthew from karting into The engine used is for the single-seater, open-wheel Payne are battling for podiums and the bigger leagues “Most of still Ford’s Kent, and categories but has come late to his titles in the overseas Porsche GT3 and giving them a our racing the vehicles place own on-track career. Having long championships, while Liam Lawson chance to learn both strong emphasis on had a hankering to race, “it was only and Marcus Armstrong are going the subtleties of car stars did driver ability with little ever going to be a single-seater”. wheel to wheel with the world’s control and nuances at least a aero effect from the After a brief speculative best in FIA Formula 3 and F2, “and of race-craft. bodywork and narrow dalliance with tin-tops – a Fiat 130 I’m not even really talking about Currently in fine season of tyres offering limited TC Abarth – Clark took the plunge F1”, remarks Clark. form in the South Formula grip. in his late 40s by buying a Crosslé One of the most authoritative Island, Formula Ford The 1.6-litre Formula Ford racer from the US. voices on current and past hasn’t put up strong Ford on overhead valve unit is “I had never really considered greats, he is regularly sought out grids in the north for likely to continue to Formula Fords simply because by media for comment on the some years. their way power Formula Ford I wouldn’t fit into most of the premier race categories. Together Both northern up” in New Zealand for current cars. The only one I knew of with his close mate Bob McMurray, and southern the foreseeable future that might work was the Crosslé.” he has acted as a valuable series feed rising stars into this unless the category can activate Having hunted down a suitable intermediary between the greater country’s premier single-seater support from the brand that vehicle in the US, Clark brought Kiwi sporting public and those at championship – the Castrol Toyota originally set it on-track. it to New Zealand and had it the very heart of the action. Racing Series (TRS). In October last year, the finished in bright yellow. 

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24 www.autofile.co.nz motorsport f & i

Kiwi Driver Fund trustee Michael Clark at speed in his Crosslé Formula Ford

t It carries number 32 in tribute So how does that selfish Clark says from the original to the Marmon Wasp car that won obsession work for him? “trio at the top” – McLaren, Hulme the very first Indy 500. Clark has been named the and Amon – to the current day, He now races – and latest independent trustee of the this country has never stopped occasionally features on the Kiwi Driver Fund (KDF), joining producing world-class drivers. podium – in the Historic Formula mate Bob McMurray and others. “For people who loved the Ford category. Its season is The fund helps drivers meet the Mitch Evans, Brendon Hartley and long and has generous breaks cost of contesting the TRS. Its Earl Bamber period in our history, between rounds with six rounds trustees are now seeking support here’s a chance to ensure New and two special events spread from partner companies to help it Zealand maintains its presence in from October to May. Grid sizes continue its work. the motor-racing world. can be anywhere up to 24 cars, “I’ve always been aware of the “Brett Riley, Paul Radisich, none of which can be any later KDF and aware of the passion Jonny Reid all had hard roads to than 1988. that drives it. The trustees are their international careers. The Clark says: “It’s great, close there because they believe KDF is a wonderful way to give a

racing with real camaraderie in pit wholeheartedly in the future of 2021 Toyota Racing Series champ Matthew boost to the next crop of Kiwis on lane and away from the track.” Kiwi motor racing.” Payne cut his teeth in Formula Ford their way up.”

Dismal weekend for Kiwis UNLOCK race weekend that second race, but was disqualified promised much and for using the wrong engine EXHILARATING delivered little, Monaco control map. PERFORMANCE hasA tested the resilience of New With the feature race looming Nothing tests engine oil like a motorsport vehicle being pushed Zealanders Liam Lawson and later that afternoon, Lawson had to the limits. Not only do we work alongside leading car Marcus Armstrong. little time to regain his composure, manufacturers - many who exclusively recommend Castrol EDGE After a daring last lap overtake yet still managed to score seventh - but we also test our oils with leading motorsport teams and partners on the track and in the workshop. Our technology is on Jehan Daruvala in race one on track and believes he could built on the bedrock of their great achievements. that put him on pole for the have been even higher. partial-reverse grid second sprint “I’d be lying if I said I was over Castrol EDGE 10W-60 is the official oil of theCastrol race, Armstrong was set to line what happened,” says Lawson. “I Toyota Racing Series – Tested to the EXTREME. up in the first-ever all-Kiwi FIA think that it will take some time to Formula 2 grid with Liam Lawson get over. in second position. “It’s obviously very tough Instead, he was unable to get to swallow, and it was a rare his car started and had to rejoin occasion where I had to get back from the pits at the start. in a car for another race after only Lawson won last month’s a few of hours.”

Liam Lawson

www.autofile.co.nz 25 disputes

The case: The buyer wanted to Questions raised over how rusty used reject his Subaru Legacy because he discovered it had significant rust on its underbody, which import passed certification inspection potentially rendered it unsafe. The trader said the used import had passed its certification inspection Background due to the exhaust, muffler and Hall confirmed the rust was and warrant of fitness (WOF), so it Daniel Wezel wanted to reject the brake-pad issues. “not too bad as long as it gets was fit for purpose. 2007 Subaru Legacy he purchased Wezel said if he had been aware fixed. If left, I think it could cause The decision: The adjudicator from 2 Cheap Cars for $8,304 on of any bad corrosion, he wouldn’t WOF problems in the future”. agreed the car wasn’t safe and its February 20, 2020, mainly because it have bought the car. Wezel obtained two quotes corrosion was so extensive it was had extensive rust on its underbody. A month after purchase, he took for repair. McClintock Motors surprised the vehicle had passed The trader claimed he wasn’t it to Havelock North Auto Court Ltd quoted $5,203 to replace the sub- compliance. The consumer’s right to reject it was upheld. entitled to do so because the to have a CV boot replaced. While frame, CV joint, shock absorbers, Legacy passed its certification the car was on the hoist, mechanics brake pads and rotors, front At: The Motor Vehicle Disputes inspection on December 24, 2019, showed Wezel its rust, including control-arm bushes, and front Tribunal, Wellington. after being imported from Japan, corroded fuel lines. The mechanics brake callipers. Comac quoted and other issues identified by Wezel were surprised VTNZ hadn’t $900, plus GST, for sandblasting were attributable to wear and tear. noticed this and that the Legacy and painting the underbody. of the CGA, the tribunal found would likely fail its next WOF. Gavin Harris, director of the Subaru would not have been The case On April 14, Wezel completed McClintock Motors, attended bought by a reasonable consumer In its adverts for the Legacy, the the dealer’s claim form on the basis the hearing by phone. He said fully acquainted with the nature trader didn’t disclose that it had of this inspection and significant the vehicle shouldn’t have been and extent of the corrosion. Wezel any rust. Wezel said the dealer told rust issues identified by the certified for compliance because of said he wouldn’t have purchased his mother before purchase that it mechanics, and attached several the severity of the underbody rust. it if the significant rust had been was a tidy car with no issues and no photos of the corrosion. identified in VTNZ’s report. exterior damage. Wezel also emailed the trader The finding Secondly, the car – in its The buyer was in Wellington so to seek a full refund of the The tribunal had “no hesitation” current state – didn’t meet James MacDonald, of 2 Cheap Cars purchase price or compensation in concluding the vehicle failed WOF requirements. It required in Palmerston North, suggested for the damage. to comply with the Consumer substantial, expensive and time- VTNZ inspect the vehicle. Two days later, the trader Guarantees Act (CGA). consuming repairs to render it fit VTNZ’s report of February 17, emailed back saying Wezel had to The corrosion was so extensive for purpose. 2020, stated its overall condition give it the first right to fix the issue. it was surprising the car had Thirdly, the extent of rust was “poor” and it had some It also asked him to have the car passed its compliance inspection around safety-related components, structural or corrosion issues. checked by an AA or Motor Trade when it was imported. such as the fuel lines and shock Under the heading “underbody”, Association-approved repairer and The adjudicator said it was absorbers, rendered the vehicle some issues were identified – the send in the report. also surprising more rust wasn’t unsafe. exhaust pipe and muffler were McClintock Motors Ltd identified in the VTNZ report Wezel For those three reasons, the developing rust, and there was inspected the vehicle on June 1. obtained before he decided to Subaru failed to comply with the a problem how front brake pads Based on its report, Wezel told the purchase the Subaru. guarantee of acceptable quality were fitted. dealer he considered the Subaru to Indeed, Wezel’s father told the and the failure was of a substantial Wezel and other family be unfit for purpose because of its hearing he had complained to character. members spoke to the trader many rusted components. VTNZ about the inadequacy of about these issues and agreed to a Wezel also consulted Hall its report and had been refunded Orders $200 price reduction so they could Repair Certification. Owner Tony its cost. The rejection of the vehicle was replace the exhaust and muffler. Hall inspected the vehicle in June Accordingly, the claim that the upheld. The trader was ordered His father spoke to VTNZ and reported the visible corrosion vehicle failed to comply with the to refund the buyer the $8,304 following its inspection and should have been picked up CGA’s guarantee of acceptable purchase price, pay $185 for the confirmed the overall condition of when the car was certified for quality was upheld. two inspection reports and collect the vehicle was deemed to be poor compliance. Firstly, in terms of section 21 the car.

MEDIATION SERVICE FACILITATING RESOLUTION

26 www.autofile.co.nz disputes

The case: The buyer wanted Series of faults insufficient to warrant to reject his faulty 2008 BMW because he claimed it was unfit for purpose. The trader refused buyer’s application to reject vehicle to take the vehicle back and refund the purchase price because it had repaired the problems at its Background X5 passed the WOF, but Bhamani was The ongoing oil leak from the own cost. Rafiq Bhamani wanted to reject told the passenger side headlight sump seal appeared to be minor the 2008 BMW X5 he purchased for was discoloured and would need to and was discovered more than The decision: The tribunal dismissed the purchaser’s case $19,450 from Turners Group NZ Ltd be replaced in the future. five months after the vehicle was even though the car wasn’t of in July 2020. On December 22, he noticed supplied. acceptable quality. It found its He claimed numerous defects the vehicle was making an unusual Therefore, the question the faults were not of a substantial meant it wasn’t of an acceptable sound on start-up. It was again tribunal had to consider was character and that the dealer had repaired them in a reasonable time. quality under legislation to protect assessed by Continental Cars BMW, whether the X5’s faults were such the rights of consumers. which found the left-hand delivery that a reasonable consumer, fully At: The Motor Vehicle Disputes The dealer said it had fixed pump was faulty, affecting the fuel acquainted with the true nature Tribunal, Auckland. the faults within a reasonable supply to the engine. and extent of the faults, wouldn’t timeframe, so Bhamani wasn’t It discovered evidence that have purchased the BMW. character and agreed with the entitled to reject it. the pump had previously been None of the defects, when trader that Bhamani wasn’t entitled “crudely” repaired, and detected considered separately, were so to reject the X5. The case oil leaks from the rocket cover and significant that a reasonable Turners had also rectified all the After the X5 failed to start on oil-filter housing gaskets. buyer would have decided faults that breached the guarantee September 9, 2020, Bhamani had it As a result of these issues, against purchasing the car. Each of acceptable quality, so the buyer assessed by Continental Cars BMW, Bhamani rejected the vehicle on of those defects was swiftly wasn’t entitled to any orders which discovered some faults. January 7, 2021. diagnosed and, once parts requiring the dealer to perform These were a warning light Turners agreed the BMW was became available, repaired. repairs under the terms of the CGA. relating to an engine misfire, fault defective. It had replaced the Likewise, when considered Further, although Bhamani codes in regard to the footwell ignition coils and spark plugs, together, the faults didn’t amount to spent $50 obtaining a warrant module (FRM) and a broken broken protective shield, delivery a failure of a substantial character. because Turners, or the inspector protective shield in the engine pump, and the rocker cover and oil- The purchaser of a 12-year-old who performed the pre-purchase bay, which affected the air- filter gaskets. BMW X5 with an odometer reading inspection, had overlooked putting conditioning system. of about 124,000km should a WOF sticker on the vehicle before Bhamani said Turners had The finding understand that such vehicles it was supplied to him, the buyer remedied the misfire and broken The evidence showed the vehicle might develop faults due to their was not entitled to recover that cost. protective shields at its cost. He had a number of defects, which age and mileage that could be Bhamani didn’t tell the dealer that also noted the FRM warning light mean it wasn’t of acceptable quality expensive to repair. he thought the WOF had expired continued to intermittently come for the purposes of section six of the Certainly, when those defects earlier than expected and he didn’t on, but that didn’t form part of Consumer Guarantees Act (CGA). breached the CGA’s guarantee of ask Turners to update the warrant this claim. A reasonable consumer acceptable quality, a reasonable before he incurred that cost. At that time, he also noticed the purchasing a 12-year-old BMW X5 consumer would expect the If he had done so, he would warrant of fitness (WOF) was due to for $19,500 would not consider supplier to fix them within a most likely have been told by the expire in January 2021. those issues to be acceptable in reasonable time. trader that the vehicle did have Bhamani believed Turners had a vehicle of that price and age so However, the tribunal wasn’t an updated WOF at the time of put a new WOF on the vehicle soon after purchase. satisfied the BMW’s defects were sale and that a new sticker simply shortly before purchase, so he was The remaining faults alleged such that a reasonable person needed to be attached to the surprised it was due to expire less by Bhamani – an ongoing oil would have lost all confidence in windscreen. than six months after the car was leak from the sump seal and the its ongoing reliability. supplied. discoloured headlight – didn’t Consequently, the adjudicator Order He had a warrant inspection breach the legislation’s guarantee ruled the car’s accumulated defects The purchaser’s claim was performed in December 2020. The of acceptable quality. were a failure of a substantial dismissed by the adjudicator.

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www.autofile.co.nz 27 YOUR FIRST CHOICE IN SHIPPING

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A Palmerston North Masterton Wellington Nelson y Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne 10,012 Napier New Plymouth Wanganui Palmerston North 11,257 2020: 5,400  85.4% Masterton Wellington Nelson Blenheim 2020: 9,565  17.7% YOUR FIRST CHOICE IN SHIPPING Greymouth Whangarei Auckland Hamilton Thames M ay 2021

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JAPAN Nagoya 22 May 2 Jun 18 Jun 2 Jul USED: 420 2020: 293 43.3% Yokohama 23 May 3 Jun 19 Jun 3 Jul Invercargill NEW: 181 2020: 83 118.1% Auckland 8 Jun 19 Jun 5 Jul 19 Jul USED: 196 2020: 153 28.1% Lyttelton 12 Jun 3 Jul 9 Jul 31 Jul Wellington 14 Jun 5 Jul 10 Jul 2 Aug Your Vehicle FINANCE TO SHIFT Y OUR Import Finance NEW ZEALAND Nelson 21 Jun 5 Jul 19 Jul 2 Aug BUSINESS IN TO TOP GEAR Specialist

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

MAY '21 2021 YEAR 2021 MAY '21 2021 YEAR 2021 MKT MAKE MAY '21 MAY '20 +/- % MAKE MODEL MAY '21 MAY '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 3,139 2,128 47.5 27.9% 14,449 28.4% Toyota Aqua 695 316 119.9 6.2% 3,473 6.8% Mazda 1,554 1,564 -0.6 13.8% 7,056 13.9% Mazda Axela 510 551 -7.4 4.5% 2,425 4.8% Nissan 1,495 1,683 -11.2 13.3% 6,936 13.6% Toyota Prius 445 250 78.0 4.0% 2,108 4.1% Honda 969 884 9.6 8.6% 4,449 8.7% Nissan X-Trail 399 168 137.5 3.5% 1,671 3.3% Subaru 862 721 19.6 7.7% 3,681 7.2% Honda Fit 370 365 1.4 3.3% 1,781 3.5% BMW 594 440 35.0 5.3% 2,530 5.0% Volkswagen Golf 343 214 60.3 3.0% 1,532 3.0% Volkswagen 536 343 56.3 4.8% 2,508 4.9% Mitsubishi Outlander 303 196 54.6 2.7% 1,361 2.7% Mitsubishi 507 387 31.0 4.5% 2,174 4.3% Mazda Demio 267 322 -17.1 2.4% 1,389 2.7% Audi 358 236 51.7 3.2% 1,467 2.9% Subaru Impreza 254 283 -10.2 2.3% 1,133 2.2% Suzuki 273 408 -33.1 2.4% 1,295 2.5% Mazda CX-5 250 110 127.3 2.2% 942 1.9% Lexus 234 122 91.8 2.1% 962 1.9% Subaru Legacy 245 259 -5.4 2.2% 1,055 2.1% Mercedes-Benz 212 124 71.0 1.9% 917 1.8% Toyota Vanguard 238 102 133.3 2.1% 1,043 2.0% Land Rover 63 39 61.5 0.6% 224 0.4% Toyota Corolla 235 182 29.1 2.1% 1,109 2.2% Volvo 63 57 10.5 0.6% 349 0.7% Suzuki Swift 218 350 -37.7 1.9% 1,033 2.0% Ford 59 74 -20.3 0.5% 301 0.6% Toyota MarkX 216 88 145.5 1.9% 879 1.7% Jaguar 43 40 7.5 0.4% 189 0.4% Nissan Leaf 199 140 42.1 1.8% 1,014 2.0% Jeep 36 29 24.1 0.3% 138 0.3% Mazda Atenza 195 226 -13.7 1.7% 841 1.7% Chevrolet 34 33 3.0 0.3% 148 0.3% Toyota Wish 195 134 45.5 1.7% 906 1.8% Porsche 27 17 58.8 0.2% 133 0.3% Toyota Blade 142 99 43.4 1.3% 643 1.3% Chrysler 24 16 50.0 0.2% 86 0.2% Honda CR-V 139 88 58.0 1.2% 617 1.2% Mini 24 35 -31.4 0.2% 137 0.3% Honda Odyssey 138 71 94.4 1.2% 586 1.2% Holden 23 41 -43.9 0.2% 101 0.2% Nissan Note 127 149 -14.8 1.1% 544 1.1% Dodge 22 17 29.4 0.2% 106 0.2% Nissan Skyline 127 142 -10.6 1.1% 533 1.0% Hyundai 17 35 -51.4 0.2% 110 0.2% Subaru Forester 122 67 82.1 1.1% 560 1.1% Peugeot 14 14 0.0 0.1% 70 0.1% BMW 320i 118 78 51.3 1.0% 522 1.0% Kia 12 12 0.0 0.1% 58 0.1% Mazda Premacy 114 126 -9.5 1.0% 573 1.1% Tesla 5 1 400.0 0.0% 15 0.0% BMW 116i 96 60 60.0 0.9% 425 0.8% Cadillac 4 4 0.0 0.0% 12 0.0% Toyota Sai 92 30 206.7 0.8% 326 0.6% Citroen 4 4 0.0 0.0% 28 0.1% Toyota Vitz 91 152 -40.1 0.8% 469 0.9% Lincoln 4 0 400.0 0.0% 12 0.0% Nissan Fuga 88 63 39.7 0.8% 418 0.8% MG 4 1 300.0 0.0% 10 0.0% Nissan Serena 88 92 -4.3 0.8% 497 1.0% Bentley 3 2 50.0 0.0% 19 0.0% Ford Crown 85 31 174.2 0.8% 306 0.6% Chrysler Jeep 3 3 0.0 0.0% 15 0.0% Volkswagen Polo 84 51 64.7 0.7% 425 0.8% Daihatsu 3 3 0.0 0.0% 15 0.0% Audi A4 81 63 28.6 0.7% 331 0.7% Renault 3 5 -40.0 0.0% 22 0.0% Subaru XV 77 22 250.0 0.7% 275 0.5% Others 30 43 -30.2 0.3% 177 0.3% Others 3,871 3,925 -1.4 34.4% 17,154 33.7% Total 11,257 9,565 17.7 100.0% 50,899 100.0% Total 11,257 9,565 17.7 100.0% 50,899 100.0%

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30 www.autofile.co.nz Climate change dominates agenda he issue of carbon-dioxide the renewed focus on fuel economy, Stephenson says the past 12 emissions from what and Dr Rod Carr, chairman of the months have seen significant but crosses the border and Climate Change Commission, Registrations climb positive change for VIA. entersT the national fleet is likely gave a presentation on his There were 11,257 used-imported A board of directors was to be the major issue for the used- organisation’s report to cars sold for the first time in this country elected with responsibility last month. imports sector as it moves forward. government. for issues of governance That was up by 17.7 per cent from the 9,565 in “Climate-related import “On each occasion, May 2020 when New Zealand was in Covid-19 and finance, while the regulations have been the number- council members lockdown for part of the month. association’s council one topic for council this year,” says participated in a robust Toyota Aqua’s was the top model with 695 sales. comprises representatives Chris Stephenson, chairman of the conversation on significant The Mazda Axela was next up with of all tiers of members 510 registrations, while Toyota’s Prius was Imported Motor Vehicle Industry industry topics. Through the and has responsibility for third on 445. Association (VIA). delivery of key questions, we Nissan’s X-Trail and Honda’s Fit industry issues. “As many of these issues were able to champion VIA’s completed the top five with “These changes came remain unresolved, it will most position and participation.” 399 and 370 sales about after months of work by likely remain a significant feature In his annual report, respectively. members and the former national moving forward.” Stephenson adds VIA’s council was executive. For many, it was the end He says VIA’s council has been formed to bring members together further entrenched in VIA’s structure, of the project. They successfully working to “find its feet” and and provide a platform for that the depth and breadth of topics established VIA’s new operating establish an operating rhythm communication and participation. discussed will change. structure and for that I would like since the association’s structure “Based on the performance so “As and when, the board will to thank them. was overhauled in 2021. far, it is clear its purpose is being need to decide the best option for “For the VIA team, however, the Since being formed in July last fulfilled. A key feature of the funding those activities. journey has only just begun. Our year, the council has got together council meetings, and one I believe “This could include asking opportunity is to now foster and on three occasions, “and at each has provided a boost to the mana members for additional support grow this new form of member meeting we’ve seen an outstanding of VIA, has been the inclusion of or temporarily allowing VIA to participation, and for VIA to be level of engagement from guest participants. operate in a deficit if that deficit is better and stronger because of it. members”. “I have no doubt that over the not detrimental to the long-term “I would like to acknowledge Those meetings have included coming year, as council becomes viability of the association.” the support of our members. Your guest speakers, such as key policy time and resources provided so makers and government officials, freely this year, along with your Used Imported Passenger Registrations - 2018-2021 and question-and-answer sessions continued financial support, means with them. VIA has started its new journey on All of them spoke about the 14,000 the right foot. way forward with the likes of “I would also like to acknowledge emissions and climate change, 12,000 the hard work and dedication of the such as Andrew Caseley, the chief small but motivated VIA team. 10,000 executive of the Energy Efficiency “The past few years have been and Conservation Authority. 8,000 full of uncertainty and change. I He gave clear indication of admire the way they have ‘gotten the likely direction and sense of 6,000 on with things’ and so quickly 2018 urgency on the developing and adapted to their new working 4,000 2019 implementing fuel-economy 2020 normal.” 2021 measures under the new 2,000 As chairman, Stephenson is government. assisted by vice-chairman Sean Peter Mersi, chief executive of the 0 Stevens and two members – Matt Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Ministry of Transport, spoke about Battle and Ken Quigley.

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www.autofile.co.nz 31 www.mmnz.biz Margins on imports decline he owner of a dealership in that margins are squeezed.” traded, so there’s a little more industry that as soon as we Timaru no longer imports Gilbert notes while prices for reliance on supply chains. realised it wasn’t going to be the cars from Japan because used cars have gone up, margins “From a demand perspective, potential disaster it could have it’sT difficult to find good stock with have remained the same. the market still seems pretty been, people quickly readjusted to margins left in them. “They are more expensive to buoyant. If you’re dealing with capitalise on unexpected demand. Craig Gilbert believes the days import. Although you might get people who aren’t affected by travel I’m proud of what our industry has of small operators being involved a little bit more for them at this restrictions, business isn’t bad and been able to do.” in importing Japanese vehicles end right now because of supply people are happy to buy cars. have gone. and demand, my margins haven’t “A year on from lockdown IMPORT LEVELS RISE “Big players importing changed. Every now and then, and level three we weren’t Some 11,167 used passenger hundreds of vehicles a month there is the odd vehicle you have a anticipating business booming vehicles were imported in May, are the only ones who can make win on but it’s not the norm.” and having such a good year. which was up by 175.9 per cent that work. They can work on Chris Stephenson, chief Back then, there was a pessimistic compared to 4,048 in the same low margins and high turnover. executive of Enterprise Motor view of what we had to do to month of last year. There were I’ve found it difficult to make it Group, says: “Disruptions to the keep staff employed and business 10,451 used cars brought in from work with Japanese imports. All rental industry and new-car ticking over for a few months. Japan last month, which was a stock, it doesn’t matter where you supply over various months “It’s a testament to the 190.1 per cent increase compared source it from, is so competitive means not as many cars are being entrepreneurial spirit of the to 3,603 in May 2020.

USED IMPORTED PASSENGER VEHICLE ARRIVALS

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

Used Imported Passenger Vehicles By Country Of Export

2020 2019 COUNTRY OF EXPORT 2021 JAN ’21 FEB ’21 MAR ’21 APR ’21 MAY ’21 MAY SHARE % 2021 TOTAL Q1 Q2 Q3 Q4 2020 TOTAL MRKT SHARE 2019 TOTAL MRKT SHARE Australia 300 283 277 289 315 2.8% 1,464 1,053 876 1,001 1,255 4,185 3.9% 5,148 3.6% Great Britain 106 123 139 125 147 1.3% 640 184 122 143 241 690 0.6% 894 0.6% Japan 10,877 8,744 12,164 9,255 10,451 93.6% 51,491 33,191 13,662 25,627 28,514 100,994 92.9% 132,494 93.8% Singapore 128 140 168 137 141 1.3% 714 384 337 601 524 1,846 1.7% 1,678 1.2% USA 30 33 27 100 79 0.7% 269 169 79 126 106 480 0.4% 664 0.5% Other countries 30 36 25 42 34 0.3% 167 54 129 170 115 468 0.4% 340 0.2% Total 11,471 9,359 12,800 9,948 11,167 100.0% 54,745 35,035 15,205 27,668 30,755 108,663 100.0% 141,218 100.0% Door-to-Door vehicle shipping experts To and from Japan, USa, UK, aUSTralia, Singapore, and The pacific Ph +64 9 303 0075 www.mmnz.biz ContaCt us today!

32 www.autofile.co.nz Rules over airbag recalls changed he vehicle inspection obtained from the manufacturer, or marques had issued airbag-related jurisdiction they are registered in, requirements manual the manufacturer’s representative recalls, distributors in New Zealand such as Japan, Singapore or the UK. (VIRM) as it relates to call- in the country of origin based had not been made aware of these It is also important to have all call- backsT has been updated to stop in the country of export, or the because those cars hadn’t been backs closed out prior to importing the wrong information accidentally manufacturer’s global records. destined for our local market. cars for sale in New Zealand. being passed onto importers. “Receipts from the New He says: “When an importer For more information, email Waka Kotahi has refreshed the Zealand distributor or franchised enquired about the recall status [email protected]. manual following the discovery of dealer confirming the work has of a particular vehicle, the local such a problem in relation to airbag been completed is an acceptable agent wasn’t able to see the recall CAR SALES BOOM systems on some European models alternative.” information. Dealers sold 18,597 second-hand sourced from Japan. The Imported Motor Vehicle “The agent provided, in good cars to the public last month, which It says sometimes a distributor Industry Association (VIA) alerted it faith, erroneous information as was up by 19.6 per cent compared in New Zealand may not have members to the changes on May 25. to the vehicle’s recall status. This to May last year when there were been advised of such a recall by a Malcolm Yorston, technical instruction corrects that anomaly.” 15,549 registrations. manufacturer because the vehicle manager, says the update was VIA reiterates previous advice As for trade-ins, they came in at wasn’t first registered in this country. necessary after the transport given to the used-imports 14,010 last month for an increase The updated VIRM states: agency discovered that while industry – and that’s to check the of 40 per cent compared to 10,009 “Therefore, confirmation must be Japanese distributors of some recall status of all vehicles in the in May 2020.

SECONDHAND CAR SALES - May 2021

DEALER TO PUBLIC PUBLIC TO PUBLIC PUBLIC TO DEALER REGION MAY '21 MAY ’20 +/- % MARKET SHARE MAY '21 MAY ’20 +/- % MAY '21 MAY ’20 +/- % Whangarei 638 507 25.8 3.43 2,090 2,001 4.4 264 177 49.2 Auckland 6,649 5,083 30.8 35.75 14,122 13,389 5.5 5,677 4,004 41.8 Hamilton 1,466 1,226 19.6 7.88 3,618 3,526 2.6 1,081 771 40.2 Thames 294 240 22.5 1.58 687 612 12.3 206 150 37.3 Tauranga 872 681 28.0 4.69 2,252 2,364 -4.7 621 374 66.0 Rotorua 385 325 18.5 2.07 983 1,053 -6.6 162 101 60.4 Gisborne 137 121 13.2 0.74 397 405 -2.0 47 38 23.7 Napier 703 569 23.6 3.78 1,563 1,536 1.8 534 378 41.3 New Plymouth 396 342 15.8 2.13 1,069 1,005 6.4 207 155 33.5 Wanganui 243 184 32.1 1.31 621 588 5.6 152 114 33.3 Palmerston North 829 661 25.4 4.46 1,698 1,668 1.8 717 547 31.1 Masterton 260 218 19.3 1.40 488 470 3.8 112 88 27.3 Wellington 1,703 1,491 14.2 9.16 3,175 3,162 0.4 1,130 811 39.3 Nelson 342 250 36.8 1.84 996 1,063 -6.3 203 130 56.2 Blenheim 177 153 15.7 0.95 396 459 -13.7 109 72 51.4 Greymouth 73 82 -11.0 0.39 185 198 -6.6 32 23 39.1 Westport 10 4 150.0 0.05 36 51 -29.4 0 0 0.0 Christchurch 2,023 2,087 -3.1 10.88 4,977 5,287 -5.9 1,859 1,452 28.0 Timaru 206 201 2.5 1.11 494 589 -16.1 96 57 68.4 Oamaru 37 43 -14.0 0.20 146 125 16.8 3 6 500.0 Dunedin 755 670 12.7 4.06 1,878 1,987 -5.5 490 356 37.6 Invercargill 399 411 -2.9 2.15 1,205 1,169 3.1 308 205 50.2 NZ Total 18,597 15,549 19.6 100.00 43,076 42,707 0.9 14,010 10,009 40.0

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www.autofile.co.nz 33 new cars

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

MAY '21 2021 YEAR 2021 MAY '21 2021 YEAR 2021 MKT MAKE MAY '21 MAY '20 +/- % MAKE MODEL MAY '21 MAY '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 1,359 997 36.3 13.6% 6,205 13.1% Toyota RAV4 620 533 16.3 6.2% 2,178 4.6% Mitsubishi 1,183 314 276.8 11.8% 5,496 11.6% Mitsubishi ASX 525 91 476.9 5.2% 1,921 4.1% Kia 1,016 521 95.0 10.1% 5,567 11.8% Mitsubishi Outlander 407 122 233.6 4.1% 2,389 5.0% Suzuki 772 510 51.4 7.7% 3,430 7.2% Kia Stonic 319 0 31,900.0 3.2% 1,345 2.8% Mazda 734 393 86.8 7.3% 3,679 7.8% Mazda CX-5 299 156 91.7 3.0% 1,569 3.3% Volkswagen 562 211 166.4 5.6% 2,116 4.5% Suzuki Swift 299 224 33.5 3.0% 1,385 2.9% Nissan 497 191 160.2 5.0% 2,126 4.5% Honda Jazz 295 53 456.6 2.9% 497 1.0% Hyundai 480 299 60.5 4.8% 2,514 5.3% Kia Seltos 292 205 42.4 2.9% 1,257 2.7% Honda 383 234 63.7 3.8% 1,796 3.8% Toyota Corolla 272 185 47.0 2.7% 1,252 2.6% Subaru 362 176 105.7 3.6% 1,474 3.1% Nissan Qashqai 260 110 136.4 2.6% 957 2.0% Ford 295 129 128.7 2.9% 1,799 3.8% Volkswagen Tiguan 227 73 211.0 2.3% 717 1.5% MG 290 57 408.8 2.9% 1,348 2.8% MG ZS 192 18 966.7 1.9% 650 1.4% Mercedes-Benz 230 72 219.4 2.3% 988 2.1% Nissan X-Trail 187 64 192.2 1.9% 986 2.1% Haval 223 47 374.5 2.2% 649 1.4% Hyundai Kona 172 68 152.9 1.7% 734 1.5% Audi 206 107 92.5 2.1% 823 1.7% Subaru Outback 169 64 164.1 1.7% 573 1.2% BMW 184 112 64.3 1.8% 866 1.8% Suzuki Baleno 153 60 155.0 1.5% 492 1.0% Skoda 176 76 131.6 1.8% 701 1.5% Kia Sportage 152 150 1.3 1.5% 1,329 2.8% Jeep 160 30 433.3 1.6% 702 1.5% Hyundai Santa Fe 145 58 150.0 1.4% 782 1.7% Mini 100 63 58.7 1.0% 399 0.8% Volkswagen Golf 122 37 229.7 1.2% 348 0.7% Peugeot 99 35 182.9 1.0% 573 1.2% Haval Jolion 121 0 12,100.0 1.2% 152 0.3% Land Rover 98 55 78.2 1.0% 659 1.4% Mitsubishi Eclipse Cross 119 48 147.9 1.2% 701 1.5% Tesla 89 22 304.5 0.9% 491 1.0% Suzuki Vitara 119 96 24.0 1.2% 595 1.3% Lexus 76 66 15.2 0.8% 464 1.0% Toyota C-HR 118 121 -2.5 1.2% 655 1.4% Porsche 74 49 51.0 0.7% 311 0.7% Ford Everest 109 25 336.0 1.1% 332 0.7% Isuzu 62 13 376.9 0.6% 183 0.4% Mazda CX-9 104 38 173.7 1.0% 508 1.1% SsangYong 51 61 -16.4 0.5% 416 0.9% Toyota Yaris 104 34 205.9 1.0% 595 1.3% Volvo 39 23 69.6 0.4% 349 0.7% Mazda CX-30 101 74 36.5 1.0% 395 0.8% Jaguar 34 22 54.5 0.3% 220 0.5% Subaru Forester 98 43 127.9 1.0% 435 0.9% Renault 32 9 255.6 0.3% 121 0.3% Suzuki Jimny 98 24 308.3 1.0% 464 1.0% Citroen 30 14 114.3 0.3% 142 0.3% Haval H2 93 34 173.5 0.9% 429 0.9% LDV 19 4 375.0 0.2% 112 0.2% Tesla Model 3 89 21 323.8 0.9% 484 1.0% Cupra 15 0 1,500.0 0.1% 30 0.1% Mazda CX-3 87 33 163.6 0.9% 445 0.9% Mahindra 15 10 50.0 0.1% 65 0.1% Ford Puma 74 0 7,400.0 0.7% 482 1.0% Alfa Romeo 12 6 100.0 0.1% 52 0.1% Jeep Compass 71 6 1,083.3 0.7% 304 0.6% Seat 11 5 120.0 0.1% 91 0.2% Kia Niro 71 16 343.8 0.7% 229 0.5% Can-Am 9 7 28.6 0.1% 33 0.1% Subaru XV 71 57 24.6 0.7% 381 0.8% Fiat 7 7 0.0 0.1% 46 0.1% Volkswagen T-ROC 70 0 7,000.0 0.7% 312 0.7% Bentley 6 2 200.0 0.1% 37 0.1% Mazda Mazda3 67 35 91.4 0.7% 328 0.7% Aston Martin 5 4 25.0 0.0% 32 0.1% Toyota Yaris Cross 64 0 6,400.0 0.6% 486 1.0% Maserati 5 1 400.0 0.0% 24 0.1% Isuzu MU-X 62 13 376.9 0.6% 183 0.4% Yamaha 4 3 33.3 0.0% 27 0.1% Ford Escape 61 38 60.5 0.6% 544 1.1% Ferrari 3 2 50.0 0.0% 22 0.0% Mitsubishi Pajero Sport 61 16 281.3 0.6% 169 0.4% Lamborghini 3 5 -40.0 0.0% 11 0.0% Hyundai Venue 58 48 20.8 0.6% 272 0.6% McLaren 1 1 0.0 0.0% 15 0.0% Mini Hatch 58 35 65.7 0.6% 165 0.3% Rolls-Royce 1 0 100.0 0.0% 8 0.0% Toyota Landcruiser Prado 57 17 235.3 0.6% 205 0.4% Others 0 435 -43,500.0 0.0% 159 0.3% Others 2,700 2,257 19.6 27.0% 15,760 33.3% Total 10,012 5,400 85.4 100.0% 47,371 100.0% Total 10,012 5,400 85.4 100.0% 47,371 100.0%

34 www.autofile.co.nz new cars Marques hit by supply delays oyota NZ reports are seeing strong forward orders. Covid-19 and a programme to its franchises are “We’ve had phenomenal introduce more clients to e-tron. experiencing delays of support from the Subaru “Being recognised as Audi NZ’s Tbetween four and six months to Corporation in Japan, which is dealer of the year for the second make new-vehicle deliveries. doing its best to help us realise the year running is well-deserved for our Popular models, such as the full potential of the new Outback. hard-working team,” says Woolford. hybrid RAV4 and the latest Hilux, Being small but outperforming Ebbett Audi, of Hamilton, are particularly affected. much bigger markets, such as the took out four awards. It won the Others are taking an average UK, certainly helps.” gong for customer satisfaction, of 16 weeks to arrive because Delayed Subaru shipments Doane Hattingh was technician of production and international arriving in March bolstered sales of the year, Ben Aldred was top shipping constraints. and provided long-awaited relief for apprentice and Annika Lourens Steve Prangnell, general manager its 16 dealerships to replenish stock. Dean Sheed, left, general manager of Audi landed the service adviser award. of new vehicles, says global demand That month saw it notch up NZ, and Blair Woolford, general manager of Audi dealerships in Auckland Farmer Audi is affecting delivery schedules for 461 new-vehicle registrations, secured five top prizes. Continental new Toyotas, used stock from Japan, which was a record for any March after the grim picture economists Cars Audi claimed three with Scott and parts and accessories. for the marque in this country. painted, is rewarding. Windelburn business manager of “The effects of Covid-19, closed Its previous sales record was set “We have customers waiting the year, Kerry Hoffman winning borders, and delayed shipping in January 2020 thanks to strong as some of our dealers are out of the Audi Sport sales specialist and logistics are impacting all demand for SUVs before Covid-19, stock and we already have factory section and Nathan McAlwee top operational areas of our local but the pandemic changed all that. back orders through to the third used-car sales manager. business,” he adds. Prior to then, Subaru had seven quarter of 2021.” Giltrap Audi claimed a double as “We are experiencing demand consecutive years of growth. Cameron Gemmel won the metro like never before, especially for Dumper says: “It’s been a TOP FOR SECOND YEAR sales specialist award and Richard hybrid variants. The problem we’re challenging 12 months for our Farmer Audi in Tauranga has taken Scott topped the service manager facing is we are now at more than owner-operator businesses and to out the marque’s dealer of the category. 10,000 back orders and can’t get see results like this, only 12 months year award. supply to fill these in a fast manner.” Its other successes at a COPING WITH ISSUES Prangnell says orders are now celebration in Auckland included Mark Stockdale, Motor Industry being taken for the second half Blair Woolford being named top Association spokesman, says the of 2021 and buyers are being Toyota at the top sales manager and Mark Ferguson new-vehicle market has been There were 10,012 new cars advised to act soon for Christmas winning the parts manager performing “exceptionally well” registered last month compared to delivery. 5,400, up by 85.4 per cent in May 2020, category. this year amid market restraints. At the same time, Toyota NZ which was hit by the coronavirus lockdown. Shaun Marburg took out He reports the overall sector is focusing on finding solutions The best-selling model was the Toyota’s RAV4 two non-metropolitan titles for is now up by 64.9 per cent – or by on 620 units for a 6.2 per cent market share. to minimise wait times caused sales specialist and Audi Sport 27,379 units – compared to the Mitsubishi’s ASX was second with a by global supply-chain issues. market share of 5.2 per cent thanks to sales specialist. first five months of 2020. “We’re doing our best to get 525 units, while the marque’s Samantha Headifen scooped “As has been the case for the more stock in. However, our top Outlander came third with 407 the marketing award for Farmer year to date, the market continues priority is continually keeping and 4.1 per cent. Audi’s communications around to be logistically challenging. customers informed of any “Worldwide shipping capacity delivery delays.” is still a long way off pre-Covid-19 Wallis Dumper, managing New Passenger Registrations - 2018-2021 levels and manufacturers are director of Subaru of New Zealand, 12,000 still grappling with a worldwide says his marque has also been in 11,000 shortage of semi-conductor chips. the “unfortunate situation of not 10,000 “Production is being slowed being able to supply some new 9,000 down or temporarily suspended to 2021 models”, include the XV. match chip availability. 8,000 “Unprecedented demand “Additionally, as the rest of 7,000 beyond what we are able to the world comes out of Covid-19 6,000 supply is a good problem to have, consumers are doing what 5,000 but we like to think customers 2018 New Zealanders did last year – 4,000 understand the situation and are 2019 spending up large on new items. 3,000 willing to be patient. 2020 “Worldwide demand for new 2,000 “We are probably missing sales 2021 vehicles is outstripping production 1,000 and, as a company, we are doing our capability and it is possible 0 best to mitigate this. Fortunately, we Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec manufacturers might begin to pro- have a loyal base of purchasers and rata supply to markets.”

www.autofile.co.nz 35 new commercials Demand for utes still brisk dealership is reporting have attracted consistently steady impact on business with an increase director of Ford NZ, says Kiwis business is doing well interest over the past year. “I can in the number of people choosing value vehicles with flexibility and when it comes to new see demand changing and the to upgrade their vehicles or invest in capability to make living their Acommercial vehicles. level of purchasing may ease back.” their homes while being unable to daily lives easier, and they perform Southern Motor Group in He notes the borders closing spend money overseas. a vital function in supporting Dunedin holds franchises for Audi, because of Covid-19 has had a huge Simon Rutherford, managing business productivity. Volkswagen, Skoda, Subaru, Peugeot, “Unless there is a fundamental Haval and Great Wall Motors, which New Commercial Sales - 2018-2021 shift away from primary industries has rebranded to GWM. 6,000 and from supporting the engine And dealer principal Craig Brook 5,500 of our economy, I cannot see the 5,000 highlights the two Chinese brands desire for utility capability and 4,500 as particularly appealing to buyers. 4,000 function altering. Ideally, this “The luxury-car market has had a 3,500 can be achieved in tandem with large increase in sales, but there has 3,000 embracing advances that help 2,500 especially been interest in GWM and 2018 lower emissions further.” 2,000 Haval,” he says. “We’ve had so much 2019 There were 4,540 new 1,500 interest in these two brands and 2020 commercials registered in May, 1,000 2021 have sold out of GWM’s utes for at 500 which was an increase from 2,912 least the next two months.” 0 – or by 55.9 per cent – during the Brook notes all types of vehicles Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec same month of 2020.

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

MAY '21 2021 YEAR 2021 MAY '21 2021 YEAR 2021 MKT MAKE MAY '21 MAY '20 +/- % MAKE MODEL MAY '21 MAY '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 1,029 614 67.6 22.7% 5,143 23.8% Ford Ranger 876 498 75.9 19.3% 4,107 19.0% Ford 932 573 62.7 20.5% 4,541 21.0% Toyota Hilux 795 440 80.7 17.5% 4,109 19.0% Mitsubishi 538 322 67.1 11.9% 2,582 11.9% Mitsubishi Triton 491 321 53.0 10.8% 2,404 11.1% Nissan 339 83 308.4 7.5% 1,420 6.6% Nissan Navara 339 83 308.4 7.5% 1,420 6.6% LDV 292 52 461.5 6.4% 947 4.4% Isuzu D-Max 213 94 126.6 4.7% 1,032 4.8% Isuzu 287 165 73.9 6.3% 1,399 6.5% Toyota Hiace 184 151 21.9 4.1% 831 3.8% Mazda 168 137 22.6 3.7% 1,072 5.0% Mazda BT-50 168 137 22.6 3.7% 1,072 5.0% Great Wall 162 39 315.4 3.6% 589 2.7% Hyundai iLoad 132 23 473.9 2.9% 669 3.1% Hyundai 139 24 479.2 3.1% 704 3.3% Great Wall GWM Cannon 116 0 11,600.0 2.6% 456 2.1% Volkswagen 96 52 84.6 2.1% 503 2.3% LDV G10 93 9 933.3 2.0% 293 1.4% Fuso 80 47 70.2 1.8% 346 1.6% LDV T60 90 18 400.0 2.0% 351 1.6% Fiat 69 64 7.8 1.5% 384 1.8% Fiat Ducato 69 64 7.8 1.5% 384 1.8% Mercedes-Benz 59 87 -32.2 1.3% 273 1.3% LDV V80 60 21 185.7 1.3% 171 0.8% Hino 57 65 -12.3 1.3% 272 1.3% Ford Transit 56 75 -25.3 1.2% 434 2.0% Scania 43 34 26.5 0.9% 130 0.6% Toyota Land Cruiser 50 23 117.4 1.1% 203 0.9% SsangYong 35 29 20.7 0.8% 211 1.0% Mercedes-Benz Sprinter 48 29 65.5 1.1% 223 1.0% Iveco 34 33 3.0 0.7% 147 0.7% Mitsubishi Express 46 1 4,500.0 1.0% 176 0.8% Ram 27 25 8.0 0.6% 113 0.5% Great Wall Steed 46 39 17.9 1.0% 133 0.6% Renault 25 11 127.3 0.6% 126 0.6% LDV Deliver 9 36 0 3,600.0 0.8% 116 0.5% Chevrolet 17 5 240.0 0.4% 68 0.3% Isuzu N Series 36 33 9.1 0.8% 182 0.8% Others 112 451 -75.2 2.5% 664 3.1% Others 596 853 -30.1 13.1% 2,868 13.3% Total 4,540 2,912 55.9 100.0% 21,634 100.0% Total 4,540 2,912 55.9 100.0% 21,634 100.0%

Know what’s going on in YOURYOUR industry Keep up to date with the latest automotive news Subscribe now at www.autofile.co.nz/subscribeINSIGHT 36 www.autofile.co.nz used commercials Boom in construction boosts sales sales manager says the Craig Gilbert, of Craig Gilbert all retailers. There will always be a they can probably pull out margins. building industry is busy in Motors in Timaru, has been demand for SUVs and utes here, “I don’t have much to do with and around Auckland, and struggling to access used utes with so you must keep in touch with them, but I bet margins are quite low that’sA helping to sustain business. good margins. contacts to get stock. on new vehicles so often the trade-in Elliot Greenwell, of 317 – The “If south Canterbury’s farmers “The franchise guys are holding can be the saviour. Due to the high Commercial Specialists in Takanini, are doing well, it flows onto almost onto a lot of used stock because demand for used, they will not be say utes are popular with buyers as holding onto trades for longer.” a result. Used Commercial Sales - 2018-2021 Carl Dogget, of Town & Country “I don’t see any changes on the Motors in Christchurch, says: “We 1,200 horizon that will soon warrant a try to educate buyers about how sales decline. It was difficult about 1,000 the market is going. Right now, eight months ago and we thought they can’t always buy what they’re Covid-19 would ruin our business. 800 after. For those who have followed However, it’s now doing well. 600 our utes and figured it out, they “Shipping from Japan has been will buy something fit for purpose 2018 slower, but we’ve maintained 400 2019 as soon as they see it.” stock levels. We’re fairly small and 2020 There were 613 used-imported 200 keep about 50 to 60 vehicles, so 2021 commercials sold last month – haven’t felt the pressure as bad as 0 down by 26.4 per cent from 833 in some others.” Jan Feb Mar Apr May Jun Jul Sep Oct Nov Dec May 2020.

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

MAY '21 2021 YEAR 2021 MAY '21 2021 YEAR 2021 MKT MAKE MAY '21 MAY '20 +/- % MAKE MODEL MAY '21 MAY '20 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 258 371 -30.5 42.1% 1,093 39.3% Toyota Hiace 178 265 -32.8 29.0% 725 26.1% Nissan 88 200 -56.0 14.4% 409 14.7% Toyota Dyna 44 36 22.2 7.2% 168 6.0% Isuzu 53 39 35.9 8.6% 252 9.1% Nissan NV350 43 38 13.2 7.0% 170 6.1% Hino 45 31 45.2 7.3% 210 7.6% Hino Dutro 33 22 50.0 5.4% 156 5.6% Ford 31 36 -13.9 5.1% 140 5.0% Isuzu Elf 29 29 0.0 4.7% 164 5.9% Mitsubishi 26 20 30.0 4.2% 154 5.5% Fuso Canter 16 9 77.8 2.6% 109 3.9% Holden 14 16 -12.5 2.3% 70 2.5% Toyota Toyoace 14 20 -30.0 2.3% 88 3.2% Mazda 14 46 -69.6 2.3% 80 2.9% Isuzu Forward 13 5 160.0 2.1% 49 1.8% Volkswagen 11 13 -15.4 1.8% 35 1.3% Nissan Atlas 13 11 18.2 2.1% 63 2.3% Chevrolet 10 12 -16.7 1.6% 52 1.9% Ford Ranger 12 15 -20.0 2.0% 56 2.0% Suzuki 8 7 14.3 1.3% 27 1.0% Chevrolet Colorado 11 10 10.0 1.8% 45 1.6% Daihatsu 7 2 250.0 1.1% 32 1.2% Toyota Regius 11 33 -66.7 1.8% 40 1.4% Mercedes-Benz 7 1 600.0 1.1% 22 0.8% Hino Ranger 9 5 80.0 1.5% 41 1.5% Dodge 5 5 0.0 0.8% 19 0.7% Nissan Caravan 9 62 -85.5 1.5% 71 2.6% UD Trucks 4 1 300.0 0.7% 15 0.5% Suzuki Carry 8 7 14.3 1.3% 27 1.0% GMC 3 0 300.0 0.5% 7 0.3% Daihatsu Hijet 7 0 700.0 1.1% 32 1.2% Iveco 3 3 0.0 0.5% 7 0.3% Ford Transit 6 6 0.0 1.0% 21 0.8% Volvo 3 2 50.0 0.5% 8 0.3% Mazda BT-50 6 5 20.0 1.0% 23 0.8% Hyundai 2 1 100.0 0.3% 12 0.4% Volkswagen Amarok 6 8 -25.0 1.0% 19 0.7% LDV 2 1 100.0 0.3% 5 0.2% Chevrolet Silverado 5 7 -28.6 0.8% 14 0.5% Others 19 26 -26.9 3.1% 131 4.7% Others 140 240 -41.7 22.8% 699 25.1% Total 613 833 -26.4 100.0% 2,780 100.0% Total 613 833 -26.4 100.0% 2,780 100.0%

Know what’s going on in YOURYOUR industry Keep up to date with the latest automotive news Subscribe now at www.autofile.co.nz/subscribeINSIGHT www.autofile.co.nz 37 Waiting times hit four months dealer principal says it’s Carman says a softening of the on a vehicle is the highest I’ve ever important for consumers’ market because of Covid-19 was seen. We’re encouraging our market Stock levels slide expectations to be expected last year, but buyers are to trade in their old cars to ensure Imports of new cars in May came in at 10,590. This was 283 Awell-handled with issues around out spending their money. our yard isn’t empty because the per cent more than in the same supply and production expected to “That said, we expect we’ll supply of new is out of our control. month of 2020 and 25.1 per cent continue over coming months. have issues around supply and “With numerous manufacturers higher than April’s 8,462 units. That’s the view of Matthew production over coming months, impacted by the pandemic, Registrations of new passenger Carman, of Capital City Motors, and we just have to roll with that. including lockdowns and closure vehicles totalled 10,012 last month, which has Ford and Mazda franchises “We still see demand remaining of imported goods, plants are on which was up 85.4 per cent from 5,400 in May 2020 when Covid-19 in Lower Hutt and Kapiti. strong this year. Logic would say reduced capacity. Dealerships in restrictions were affecting He told Autofile that customers what goes up comes down, but New Zealand are constrained by businesses. It also represented aren’t used to having to wait for up we aren’t seeing any signs of that this and we have no control on an increase of 13.5 per cent from to four months, “but that’s the reality at the moment and business still stock levels coming in. 8,825 units in March. for all brands at the moment”. seems to be progressing. “Planning a budget for the The numbers have resulted in “If people want a certain car in a “The usual suspects are behind next 12 months is proving difficult the stock of new cars still to be registered increasing by 578 to particular colour and with a certain the strong demand. The popularity without knowing how many 79,737. Daily sales, as averaged specification, they’re looking at of SUVs of any type is part of a new vehicles we’re going to get. over the previous 12 months, three or four months for it to arrive,” global trend.” We’ll order something like five stand at 273 units per day. adds Carman. Craig Brook, dealer principal and be lucky if we get one – it’s May’s results mean stock at- “However, if they’re flexible at Southern Motor Group in unpredictable.” hand has dropped to 292 days, on the derivative, then we may Dunedin, says one of the biggest That said, Brook adds or 9.6 months, if sales continue at the current rate. In the same be able to get something sooner. challenges for those in the industry unpredictability is what makes the month of 2020, the figures Customers are not used to that, so is obtaining new-vehicle stock. industry fun and interesting with were 327 days, or 10.8 months, we’ve got to handle expectations.” “The number of multiple offers every day so different. respectively.

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

CAR SALES DAILY SALES DAYS VARIANCE STOCK - 12-MONTH STOCK 340 IMPORTED REGISTERED AVERAGE AT HAND

May ‘20 2,765 5,400 -2,635 82,874 253 327 320 Jun ‘20 4,322 7,413 -3,091 79,783 250 320 May 2020 — May 2021 Jul ‘20 4,321 8,200 -3,879 75,904 250 303 300 Aug ‘20 5,371 7,072 -1,701 74,203 246 301 Sep ‘20 8,313 7,735 578 74,781 239 312 280 May 2019 — May 2020 Oct ‘20 8,998 8,296 702 75,483 233 324 260 Nov ‘20 7,483 8,029 -546 74,937 229 328 Dec ‘20 9,452 5,572 3,880 78,817 222 356 240 Jan ‘21 7,031 9,712 -2,681 76,136 223 341 Feb ‘21 10,547 8,710 1,837 77,973 225 346

Days of stock Days 220 Mar ‘21 11,661 10,112 1,549 79,522 238 334

Apr ‘21 8,462 8,825 -363 79,159 260 304 200 May ‘21 10,590 10,012 578 79,737 273 292

Year to date 48,291 47,371 920 180 Change on last month 25.1% 13.5% 0.7% 0 Change on May 2020 283.0% 85.4% -3.8% OCT SEP JUL JAN FEB NOV APR DEC AUG JUN MAY MAR MORE IMPORTED MORE SOLD LESS STOCK MAY

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38 www.autofile.co.nz Changes to biosecurity ‘intriguing’ he chief executive of spending less time dockside and others in the industry, was Autohub NZ is surprised fewer MPI rejections. expecting Biosecurity NZ staff to Sales on the rise the Ministry for Primary Willett says delays at ports have eventually return to Japan for pre- There were 11,167 used cars IndustriesT (MPI) is making changes become an increasing problem border verifications. imported in May for an increase of 7,119 units, or by 175.9 per cent, to onshore verification processes. since Biosecurity NZ staff returned He notes BIOs now face greater on the same month of 2020 when Frank Willett says keeping from Japan after doing verifications responsibility for ensuring vehicles the impacts of the coronavirus Biosecurity NZ officers at domestic there for more than 10 years. are free of contamination before disrupted the industry. ports to check used-vehicle imports, “I appreciate MPI has taken on they are loaded. Last month’s figure was also up rather than sending them back feedback from BIOs and other key “I’m intrigued that while the MPI 22.3 per cent on the 9,948 units to Japan, seems at odds with the stakeholders,” he adds. “What used has maintained a full commitment imported in April this year. A total of 11,257 units were sold previous approach. to be an audit in Japan started to to biosecurity risk offshore for many during May, which compared to His comments come after the appear to be a total ‘re-inspection’ of years, its move to conduct auditing 9,565 in the same period a year MPI announced in late April that vehicles on arrival in New Zealand. on arrival appears to be at odds with ago. The latest tally was 11.1 per it is changing how it deals with “There’s been a lot of dialogue that. It was a bit of a surprise it took cent higher than the 10,134 units contaminated cars. between all parties before the this opportunity to change things. sold in April. The process, which puts more MPI settled on what is hopefully a “Discussions I’ve had with the With 90 fewer used cars imported than registered last responsibility on border-inspection satisfactory, alternative process to MPI until recently were about it month, it brought stock sitting on organisations (BIOs), is due to be address port congestion. waiting for the Ministry of Foreign dealers’ yards, or in compliance fully operational by July. “The biosecurity side is important, Affairs and Trade to confirm when shops, to 29,665 units. This was The aim is to cut port-clearance but the ministry also has to realise staff could be redeployed to Japan. I 13.6 per cent, or 4,660 cars, lower times with transitional facilities set the level of inspection and audit has can only surmise this change could than at the end of May 2020. With current average daily sales up where vehicles of concern can to be fit for purpose. The industry be budget related. It will place more rising to 337, there are 88 days’ be retreated as required. It is hoped felt it had gone beyond that.” onus on BIOs to do a satisfactory job stock remaining if sales continue this will mean roll-on, roll-offs Willett says he, like many in managing risk offshore.” at this rate.

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

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

160 May ‘20 4,048 9,565 -5,517 34,325 340 101 Jun ‘20 5021 11962 -6941 27384 342 80 140 Jul ‘20 9,212 11,975 -2,763 24,621 340 72 Aug ‘20 10,098 9,054 1,044 25,665 331 78 120 Sep ‘20 8,358 10,339 -1,981 23,684 327 72 Oct ‘20 9,064 9,763 -699 22,985 322 71 100 Nov ‘20 9,553 9,523 30 23,015 316 73 May 2019 — May 2020 Dec ‘20 12,138 9,334 2,804 25,819 310 83 80 Jan ‘21 11,471 9,404 2,067 27,886 304 92 Feb ‘21 9,359 9,096 263 28,149 299 94 60 May 2020 — May 2021 Days of stock Days Mar ‘21 12,800 11,008 1,792 29,941 306 98

40 Apr ‘21 9,948 10,134 -186 29,755 332 90 May ‘21 11,167 11,257 -90 29,665 337 88

20 Year to date 54,745 50,899 3,846 Change on last month 12.3% 11.1% -0.3%

Change on May 2020 175.86% 17.7% -13.6% OCT SEP JUL JAN FEB NOV APR DEC AUG JUN MAY MAR MAY MORE IMPORTED MORE SOLD LESS STOCK

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