www.autofile.co.nz January 2019

The trusted voice of the auto industry for more than 30 years Extra action predicted Specialised to keep out stink bugs training that’s proven to The Motor Industry Association warns ‘it’s only a matter of increase profits time’ before all markets are likely to have controls in place Hypercar inspired he automotive industry what’s known as “schedule three” of by game is expecting at least the import health standard (IHS) for two additional export vehicles, machinery and equipment. marketsT to face tough biosecurity A revised standard was issued p 15 requirements in the future to by the MPI on August 9 to cover prevent brown marmorated stink the current stink-bug season, which bugs (BMSBs) from crossing New runs from September 1 to April 30. Zealand’s border. The changes included 14 Supply-chain pathways for new countries being added to schedule vehicles imported from Japan – three in addition to the US and Italy, from production line to port – must which means new vehicles from already be approved by the Ministry these markets require mandatory Battery solutions for Primary Industries (MPI). treatment or have to go through an on the agenda p 17 The process involves marques approved system during the high- The MPI has issued an advisory about stink having strict controls in place to bugs on vehicles from China and South Korea risk period for BMSBs. minimise contamination risks so The extra countries are Austria, their stock doesn’t have to be heat- Japan and Malaysia, provide the Bulgaria, France, Georgia, Germany, treated before being shipped as is bulk of new vehicles coming into Greece, Hungary, Liechtenstein, the case with used imports, which this country. Romania, Russia, Serbia, Slovenia, are considered to be at a higher risk The MPI has since issued advice Spain and Switzerland. Looking into of attracting unwanted hitch-hikers. in regards to limiting biosecurity However, David Crawford, tomorrow’s world p 22 However, there are concerns threats from China and South chief executive officer of the MIA, stink bugs have found their way Korea, although it has yet to do so is surprised China, South Korea In A-Class onto vessels via new cars loaded in for Malaysia. and Malaysia do not feature on China and South Korea during the But the Motor Industry the expanded list of countries on of its own current high-risk period – although Association (MIA) would be schedule three. the pests have been discovered unsurprised if – at some point in “When the stink-bug issue before unloading in New Zealand. the foreseeable future – at least came onto the agenda in February These two countries, along with South Korea and China are added to last year, we asked where the p 26

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GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE SHIPPING CARS HAS NEVER BEEN EASIER

We’ll look after your logistics, so you don’t have to! ENJOY THE SUMMER From shore to shore and door to door, JACANNA does it all Contact us www.jacanna.co.nz | +64 9 825 0888 | [email protected] SHIPPING CARS HAS Call Steve Owens now on 021 947 752 guest editorial NEVER BEEN EASIER Regulation needed Directors Editor for cleaner fleet Brian McCutcheon Darren Risby [email protected] [email protected] ph. 021 455 775 Andrew Caseley says fuel-efficiency standards Journalists Darren Wiltshire Sue Brebner-Fox for light vehicles are needed and inevitable [email protected] [email protected] ph. 021 0284 7428 Lucy Pink [email protected] ew Zealand to more than 11,500. Not Designer must take bad when five years ago Adrian Payne Motorsport proactive steps there were just over 200, [email protected] Mark Baker [email protected] toN cut transport-generated but still only a drop in a carbon emissions if it is very big bucket. Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. to meet its international Looking at the big Back copies are also available on the website. climate-change picture, around 340,000 Copyright: Published monthly by 4Media Ltd, commitments. Our fleet is ANDREW CASELEY new and used light PO Box 6222, Dunedin 9059. one of the oldest and most vehicles entered New Chief executive, EECA All statements made, although based on information believed inefficient in the developed Zealand in 2017. to be accurate and reliable, cannot be guaranteed, and world, and it’s getting worse. Roughly half were new. Based no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or The Productivity Commission on historical averages, they – and part without written permission, whether by copying or any recommended introducing CO2 their emissions – will be part of other means, is strictly forbidden. emissions standards for light vehicles our fleet until about 2040. That’s a All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) in its enquiry into transitioning to a full 10 years after we should have low-emissions economy. reduced greenhouse gas emissions A simple way of delivering by 30 per cent below 2005 levels. reductions in carbon emissions The other half were used imports. is by having a fuel-efficiency In 2016, their average age was nine standard. The Energy Efficiency years – the oldest since 2000. Vehicle Inspection NZ and Conservation Authority (EECA) A well-designed standard believes this is the way to go. would show manufacturers New One reason for our high vehicle Zealand is serious about reducing emissions is our national move to its transport emissions and, as part Entry Certification larger, heavier vehicles. Another of this, encouraging them to offer is New Zealand is one of the few more electric vehicles or low- specialists places in the world where less- emissions options. efficient variants are still acceptable. Co-ordinating with Australia on About 80 per cent of the global this would send an even stronger light-vehicle market is regulated by signal to manufacturers, growing standards that require manufacturers trans-Tasman demand for low- to meet an overall average fuel emission vehicles. economy or CO2 emissions level. We bit the bullet on frontal- The US, China, Canada, Japan and impact standards and I believe very We’ll look after your logistics, India are part of the 80 per cent. New few of us would wish to go back. Zealand, Australia and Russia are not. Our emissions standards must EECA is responsible for two surely go the same way. No-one is so you don’t have to! key parts of the government’s advocating for overnight change, but programme to accelerate the a sensible transition period would uptake of electric vehicles (EVs) in give the industry time to adjust while New Zealand – the Low Emission getting early results on the road. ENJOY THE SUMMER Vehicles Contestable Fund and an Introducing fuel-efficiency • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges information campaign. standards for light vehicles will • Registration & relicencing • Exhaust emission testing So, of course, we are encouraged be good for consumers and our From shore to shore and door to door, by the exponential growth of EV emissions targets. With the support JACANNA does it all numbers. More than 5,000 were of the industry, we can do it sooner 0800 GO VINZ VINZ.CO.NZ registered in 2018, bringing the total than later. Contact us www.jacanna.co.nz | +64 9 825 0888 | [email protected] www.autofile.co.nz 3 news

[continued from page 1]

BMSB was endemic to, and were reporting detections of regulated production lines before being t told Japan, South Korea and pests carrying vehicles from China loaded, so it’s the devil’s own job China,” he says. and Korea. “We’re not to sort out where biosecurity “These three countries and “We remind exporters and surprised there contamination can take place. Thailand account for most new- importers the IHS requires all “The bottom line is the MPI vehicle sales in New Zealand. vehicles, machinery and equipment have been issues doesn’t want stink bugs in our Other countries are on schedule to be clean internally and country and that’s something we three of the IHS, yet South Korea, externally, and free of regulated with shipments all agree with. However, no-one China and Malaysia aren’t. pests, before being imported. This from South can conclusively find the culprit.” “We’re not surprised there includes being free of pests such as The general feeling among have been issues with shipments BMSBs from all countries.” Korea and distributors at the MIA’s council from South Korea and China in the Crawford stresses MIA members meeting in December was that current stink-bug season. have been ensuring their vehicles China in the it’s only a matter of time before “When the MPI issued its are clean before being loaded onto current stink- regulations for more markets advisory late last year, we informed vessels and are now doing their come into place. our members these two countries homework on what else may be bug season” They are getting preparatory are likely to be next off the rank required in the future. – David Crawford work for this done – that’s to say and placed into schedule three “The MPI hasn’t added China having vehicles cleaned or heat- meaning they will face extra and Korea to schedule three and were urged to ensure their treated as laid down in schedule biosecurity requirements as because it has been impossible to vehicles remained clean. three of the IHS, or to meet the exports from Japan do.” prove beyond doubt that a live bug “All markets are likely to have same requirements as for vehicles The MPI’s advisory to industry of has arrived on a vehicle from these controls in place in the future coming out of Japan. November 20 is aimed at “shippers, countries. In diplomatic terms, this with many more jurisdictions Crawford told Autofile: “If exporters and importers of new would be placing an environmental going into schedule three,” warns that happens, it will take time for and used vehicles and machinery”. barrier on trade.” Crawford. “It’s only a matter of MIA members to implement this It states: “At this stage, New When the new IHS became time before more non-European and we are getting prepared for Zealand doesn’t have BMSB measures operational in September, all countries are included. tougher conditions. in place for China and Korea. However, MIA members were alerted to “In addition to China and South “Stink bugs are endemic to the the MPI is monitoring vessels the biosecurity issues involved Korea, we import new vehicles Asia region. But by international from India, Holland, the UK, the list law, New Zealand cannot affect goes on. the productivity levels of another “After having new-vehicle country it imports from without pathways, we need to look at proof. Everyone in the industry is the ships and what else is on nervous and talking about more them. It often takes less than four added controls.” We’ve got your back weeks for new cars to come off The MPI’s advisory states it’s 

No setup fees No ongoing costs Bugs discovered on Pay for what you use boats from Europe second vessel operated Island on January 9, was granted by Wallenius Wilhelmsen a discharge for its other cargo Logistics (WWL) has bound for New Zealand. the fast, beenA ordered to leave New It is the second WWL ship to Zealand waters. be directed off-shore during the Customs issued an advisory on current high-risk stink-bug season. accurate, January 4 to report the Morning Biosecurity NZ intercepted Lynn – a roll-on, roll-off carrier three live and 39 dead BMSBs, easy way to check – had been infested by brown and 69 other dead stink bugs, marmorated stink bugs (BMSBs). after the Carmen arrived in The Ministry for Primary Auckland on November 28 last vehicle information Industries (MPI) has directed the ship, year. It was also carrying vehicles with its vehicles from Europe and from the US and Europe. the US, out of New Zealand territory Steve Gilbert, border-clearance along with other cargo from two services director, says: “We also decks destined for this country after believed the ship itself was Take a FREE online checka business account it underwent an intensive inspection contaminated.” test drive today at testdrive.checka.nz or by Biosecurity NZ officers. Autofile understands the contact us on (09) 889 9046 The Morning Lynn, which Carmen was due back in Auckland was positioned off Great Barrier on the night of January 11 after

4 www.autofile.co.nz news

t aware some shipping lines are only risk-mitigation measures and loading cargos with evidence they adjust them to appropriately are as free as possible of stink bugs manage any change. to ensure they will not encounter “Should there be sufficient delays or be denied discharge. change in risk or presence of “While the MPI hasn’t BMSBs or other regulated pests regulated this pathway, actions from China and Korea during the taken to reduce the likelihood of season, the MPI will implement contamination – whether regulated urgent changes to the IHS. or voluntary – help ensure vehicles “Peak finds in the past have been arrive compliant,” it says. “The MPI is at the end of December through supportive of this approach. All vessels arriving in New Zealand are risk-assessed by the MPI, to February, which required urgent which “forms the basis for protecting the border” “Since the beginning of the measures at short notice. 2018/19 season, the MPI has been contaminated, treat before if there are sealed decks, but this “The MPI appreciates the closely monitoring all known and shipping and don’t ship depends on where the biosecurity potential difficulties and potential pathways that BMSBs, contaminated stock without threat is located. uncertainty the industry faces as a other stink bugs and regulated appropriate treatment. Then there’s MPI-managed result of recent events. pests may be present on. The risk is  Storing vehicles and machinery systematic discharge to ensure “While not in the position constantly evolving. indoors when possible after only low-risk or non-contaminated to provide further certainty, it “Given detections of BMSBs inspection. cargos are unloaded. One of the will provide as much advice and on vehicles and machinery  Consider using an approved toughest measures is denial to guidance as possible to the vehicle from China and Korea, the MPI treatment if vehicles may be discharge some or all cargo. industry from China and Korea, and recommends exporters take a contaminated. If unsure, treat “The MPI will continue to monitor shipping lines.” proactive approach.” before shipping. for regulated pests, particularly The MPI adds it’s working closely The MPI says exporters should BMSBs, on vessels carrying break- with the Department of Agriculture consider alerting those working with The MPI risk-assesses all vessels bulk vehicles and machinery from and Water Resources in Australia exports to look for contamination – arriving in New Zealand and this China and Korea,” it says. on the issue, and it will update the including BMSBs, other stink bugs forms the basis for protecting “At the close of the 2018/19 industry of any changes in risk or and regulated pests – in and around the border. Each case of non- season, the MPI will review its import processes as they arise. facilities, particularly outdoor vehicle- compliance is assessed and border storage areas, and use controls to actions are the minimum needed reduce any potential presence of to manage risks. stink bugs. It also advises: There are limited border actions  Inspecting vehicles regularly, available to manage the risk of particularly on the day BMSBs on large cargo vessels. happy  of loading. If they are These include partial discharge WITH YOUR CURRENT

offshore treatment. From there, back, some getting extra treatment ARE YOU VEHICLE SUPPLIER its MPI-approved and controlled here, and some discharging ? discharge may take up to a week. uninfected cargo and then having to Cargo on Armacup’s Triumph leave with infected cargo.” WHAT YOU GET WITH has been offloaded in China and “We regard every arriving is en-route to New Zealand on international vessel as a potential the Carrera, while the Lake Como biosecurity threat,” an MPI returned to Japan for unloading. spokesman told Autofile. A spokesman for the MPI “We’re finding more stink bugs says returning vessels and their than last season. There has so far Reliability Stock Ready First choice for NZ dealers foR Shipping cargos will “undergo intensive been less disruption for vessels for 20 years Extensive range of pre-purchased deck-by-deck inspection”, and from Japan, but comparatively stock available for shipping NOW “may have discharge restrictions more for vehicle ships from Europe. expeRience Our buyers are knowledgeable imposed or ultimately be “Pre-arrival treatment about NZ dealers requirements tRue dealeR directed to leave New Zealand if requirements from confirmed WholeSale Fixed fee includes all Japan side: any live BMSBs are detected.” risk countries and intensive choice transport, documents and taxes Ports of Auckland reports little inspection on arrival is necessary 100,000 vehicles per week available through our auction search engine in the way of congestion caused to prevent a stink-bug population StRictly by stink bugs during the current from establishing in New Zealand. peace of Mind dealeR only season with one vessel being To date, these measures have All vehicles Ramp Inspected Heiwa Auto never sell or export vehicles to private buyers turned away before returning after proved successful. before departure treatment to discharge. “We will continue to work with contact: Kei Mikuriya Spokesman Matt Ball adds: “There industry to ensure it’s in a position to email: [email protected] has been a mix of responses with meet biosecurity requirements with some vessels going and coming as little disruption as possible.” www.heiwa-auto.co.nz

www.autofile.co.nz 5 review Looking back on busy year rom stink bugs to airbag revoked his authority. on four ships from Japan, which recalls, and electric cars The Motor Vehicle were turned away from Ports of to Kiwi conmen, it was an Disputes Tribunal wanted Auckland (POAL). eventful,F controversial and issues- changes made to consumer The crisis started in the previous led year. Autofile looks back on its information notices (CINs) when month when Mitsui OSK Lines 12 issues of the magazine in 2018. vehicles were sold after being (MOL) reloaded the Courageous written off overseas. Ace for off-shore treatment. JANUARY: Sales records Armacup’s Tokyo Car, Records were notched up in 2017 FEBRUARY: Import rules Toyofuji’s Sepang Express with 108,608 new cars sold – up The next phase of electronic and MOL’s Glovis Caravel from 2016’s previous best of stability control regulation was were also expelled. They had 8,186 102,647. At 165,654 units, used cars expected to impact on import vehicles on-board. passed the previous high of 156,972 availability when all used cars with pattern of sales continues to The Ministry for Primary in 2003. Overall, 274,262 passenger engines of more than two litres evolve with SUVs and the light- Industries (MPI) believed bugs vehicles were sold – 8.8 per cent needed to have it. “It will clamp commercial sector growing.” were getting on-board via vehicles more than 252,173 in 2016. down on some people movers Electric-vehicle (EV) uptake was and machinery. Tony Johnson, chief executive and dent volumes,” warned David expected to boom over the next two VIA warned it was likely officer of the Low-Volume Vehicle Vinsen, chief executive of VIA (the years as work with fleet managers charterers would refuse to load Technical Association, was awarded Imported Motor Vehicle Industry continued. There were now more in Japan. Up to 15,000 units $100,000 in damages after attacks Association). than 6,000 EVs on Kiwi roads. were awaiting export and this were made on him and his The Motor Industry Association total would grow, while the MIA organisation over five years. He was (MIA) believed new car and light MARCH: Industry standstill expected “disruption for the criticised in social media by John commercial sales in 2018 would be The industry was at a virtual foreseeable future”. Brett, who certified vehicles from on a par with 2017. Chief executive standstill after brown marmorated The government confirmed 1999 until 2012 when the NZTA officer David Crawford said: “The stink bugs (BMSBs) were found measures to cut risks from Japan.

[continued on page 8] Japan to new Zealand auto specialists Regular vesse O ls d ROR from Japan to F to-en ng NZ ull M nd- shippi PI p ce e hicle faci re- rvi r ve litie ins se ine s in pe ll nta Ja ct Fu co pa io d n n an

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www.autofile.co.nz 7 The TrusTed voice of The auTo indusTry for more Than 30 years

www.autofile.co.nz han 30 years Try for more T www.autofile.co.nz he auTo indus ed voice of T TrusT September review The 2018 www.autofile.co.nz June 2018

May 2018 The TrusTed voice of T [continued from page 6] he auT Association aims o indusTry for more T han 30 years Specialised training that’s Industry on high alert to secure future proven to increase profits Specialised Car dealers must training that’s Possible levies on used imports one option to boost funds as proven to board calls for feedback from members on how it moves forward p 10 for stink-bug season Specialised training that’s increase profits Typhoon hits Japan as importers of used vehicles are being All used vehicles would be n industry organisation asking its membership about fitted with faulty alpha-type proven to follow recall laws is considering all its relevance to the industry, Takata airbags. affected by extra biosecurity, transport and cross-rate costs increase profits options at boosting its whether it’s still needed and if it Vinsen describes the call- Stink-bug funds,A and is asking members should continue to operate in the back as being “big to handle” Recall work challenging Businesses operating across the automotive industry need he automotive supply options about its relevance and future. same way. with many aspects having to be least seven people and injuring chain is expected to cope p 11 inspected and cleaned before to avoid bringing in or on-selling non-complainton April stock 4 has impacted on reviewed VIA (the Imported Motor The bottom line is that if gradually dealt with by VIA. about 200. being made at the moment. with the onset of the high- Vehicle Industry Association) the funding issue remains “We are trying to work Risk profiles importing decisions made by p 8 riskT period for brown marmorated Logistics companies and Traders have been reporting ehicle importers its members. is looking into new ways unresolved, the association’s through it,” he says. “We’ve got to tackle stink bugs (BMSBs) – although border-inspection organisations lower business activity, the Record and car dealers “The recall takes effect of generating income after future may be in doubt. a new government that’s trying stink bugs teething problems are possible. are now assessing its impact on dollar’s cross-rate with the yen revenue are being warned recording a revenue deficit export, and the MPI was working on at the end of May, so “We have dealt with big to understand what’s in front of September 1 saw the start of facilities at Kobe and Osaka and has tumbled and there’s a lack of online Vof the dangers associated dealers should be using Trading places in Taipei of about $264,000 in the past issues before, but never so many it. It issued this recall with little the new season for the are warning of likely reductions vehicle storage space in Japan. financial year. that are so serious at the same understanding of the magnitude p 19 with bringing in and selling the time until then to make biosecurity threat that On top of this, extra costs themselves familiar with the Options being time,” David Vinsen, chief of the problem and, it’s fair to Aston Martin cars – especially trade-ins – wreaked havoc across are being borne by range of affected cars on considered include say, nor did most of us. that have alpha-type Takata the supply chain earlier importers. Heat- takes to skies a new import health standard (IHS). airbag inflators fitted. www.rightcar.co.nz. charging levies on used “We discussed the this year. treatment surcharges The government has “They can assess current p 14 imports and increases ramifications with the Now heat treatment currently range from stock holdings to determine in subscriptions. minister, but he needed ordered the mandatory of all used vehicles and $225-$250 per vehicle if any vehicles should be The association’s to make a decision. p 16 recall of about 50,000 Vision of an machinery from Japan depending on the vehicles with the systems What a Takata airbag inflator looks like taken to the relevant brand shortfall has been largely executive, told VIA’s annual We’re working in good is mandatory, as well as POAL said ships turned away Toyota boss p 21 service provider, land- attributed to a tumble in general meeting in Christchurch faith, but are restrained by the electric future installed that have yet for recall service. in spotlight approved pathways for transport prices in New In addition, registered motor- “They should also review any revenue from the technical work on May 30. lack of accurate information, lack to have remedial action new vehicles, to prevent the Zealand are rising and p 19 completed on them. vehicle traders run the risk of import orders already submitted it does on behalf of members. The association and its of parts and no definitive rulings. bugs getting into New Zealand. p 29 High alert – the new the price of shipping – The safety campaign, incurring a fine of up to $600,000 to see if they can remove affected This income stream fell by members have so far faced “If we didn’t take the lead on The measures result from stink-bug season p 22 has started or bunker – fuel is rising. were allowed to return under strict which affects some models under the Fair Trading Act if they cars or have them remediated $136,430 to $253,827 – or by three major issues this year – this, we would have been left the new import health standard David Vinsen, VIA’s 65 per cent – during the 2018 the stink-bug crisis, the second with all sorts of problems.” manufactured from 2000-11, has fail to comply with the call-back’s before shipment. No car can land (IHS) released by the Ministry in capacity, reports VIA (the chief executive, says been issued because faulty Takata requirements, such as by selling after May 31 if it contains an alpha Leading light financial year compared to the phase of electronic stability In regards to stink bugs, VIA Finding fresh for Primary Industries (MPI) last Imported Motor Vehicle Industry despite the short timeframe, with Charge range of 380km airbags have been associated with cars still needing remedial work. airbag device.” for sport previous reporting period. control (ESC) and, most recently, established a technical research racing talent month. Association). the new IHS being released just rules with 20 per cent of cargo to be 23 deaths and about 230 serious The Motor Trade Association Epps stresses businesses buying As for the future, VIA is the mandatory recall of vehicles group under the auspices of the Issues facing the supply Although delays will be three weeks ago, businesses are injuries worldwide. (MTA) is going to great lengths to and selling vehicles need to be [continued on page 4] chain have been exacerbated possible during the stink-bug well-prepared. Autonomous The recall, which was ordered ensure all of its members are up to aware of issues around trade-ins. by Typhoon Jebi hitting western season, which ends on March 30, “It’s still going to be tough, but world in his by Kris Faafoi, Minister of speed with what’s required of them. Private sellers are unaffected p 29 Japan on September 4, killing at not as many forward bookings for companies involved say they are sights Commerce and Consumer Affairs, Greig Epps, industry relationship in that they can move cars yet to vehicles in Japan as normal are ready to various degrees,” he told heat-treated. “It will take weeks to means that from May 31 vehicles manager, told Autofile it’s too early be reworked. Dealers, on the other ] Autofile. “This stink-bug season with alpha-type Takata airbags will to tell how the call-back issued [continued on page 4 p 22 [continued on page 4 become prohibited imports. GLOBAL VEHICLE ] process vessels,” said spokesman Matt LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE GLOBAL VEHICLE Ball. “Auckland has the country’s only LOGISTICS GLOBAL VEHICLE NZ - JAPAN - AUSTRALIA - UK - EUROPE LOGISTICS NZ - JAPAN - AUSTRALIA - heat-treatment facilities, which can UK - EUROPE handle 10 to 15 cars a day.” They were to become banned In other news, Barry Engle, Toyota NZ launched Drive Happy imports on May 31. The Motor JULY: Fraudsters jailed president of General Motors – an agency model with national Trade Association (MTA) said it was Two Kiwis operating in the UK as International, outlined Holden’s fixed prices. Its drive-away system too early to tell how the recall had car dealers were jailed after being multi-year investment in its Kiwi saw retail rates similar to average impacted importing decisions. found guilty of fraud. Nicholas O’Neil operations. It was spending $50 past deals and some cuts, with and David Chandler were convicted million on customer experience, dealerships now known as stores. JUNE: Revenue decrease of scamming about $650,000 in facilities, technology and its people. VIA was looking into ways to deposits over two years for high-end MAY: Boom in arrivals generate income after a revenue cars that never materialised. APRIL: Tight controls Long delays at POAL has been deficit of about $264,000 for the Nissan NZ was due to make an Business was improving in the caused by multiple arrivals, and past financial year. Options being announcement about software wake of the stink-bug crisis, but vessels requiring inspection, fogging looked into included charging issues with batteries in some EVs. limited stock got through to and reinspection followed by sample levies on used imports and It followed a recall by Nissan North compliance shops, there were high discharge and treatment. Ships were subscription rises. America to remedy “inaccurate volumes at POAL at Easter and losing up to four days in port, and The MIA was aiming for details calculations” with the state of dealers scrambled for stock. The the ability of compliance centres and to go into a searchable database health of batteries in 30kWh Leafs. MPI was allowing deck-by-deck storage facilities to handle the influx by the end of the month to speed The MPI’s consultation period unloading for heat treatment with affected delivery times to dealers. up identifying vehicles hit by the on changes to the IHS – a bid to some repeat fogging offshore. Paul Hallett, of the MPI, said Takata recalls. It was complicated manage biosecurity risks linked New-vehicle distributors and rules for cargo from countries with establishing which individual used to imports – was extended after importers of used cars with alpha- established stink-bug populations imports were caught up in the a request from the Japanese type Takata airbag inflators were were applied to loadings before April mandatory recall and the voluntary government. given 18 months to complete 30 – the end of the season. “Almost call-back for non-alpha systems. The industry backed reviving remedial work. There were about every carrier from Japan since early Risk profiles for all new-vehicle mandatory stewardship for end-of- 11,280 New Zealand-new vehicles February has undergone fogging.” manufacturers exporting from life tyres after several years’ work affected, of which 6,485 had been Dealers were warned of dangers Japan to New Zealand were to be on it was canned. remedied. There were 68,116 used associated with bringing in or completed by the MPI in advance vehicles with this type of airbag buying cars – especially trades – of the new stink-bug season in AUGUST: Flagging airbags and 45,622 had yet to be fixed. with alpha-type Takata inflators. September. The NZTA was considering using 

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8 www.autofile.co.nz review

t the warrant of fitness (WOF) Toyota NZ suggested a rolling regime to ban-flag vehicles with age ban on used imports to support unrectified alpha airbags. It would other measures – such as feebates – involve WOFs or COFs being to cut road-transport emissions. withheld until they were fixed. The MPI backed its revised NOVEMBER: Loan sharks IHS for importing all vehicles. It Tougher enforcement of the covered cleaning and treating loan-shark laws was needed to get stock in the country of export. It rid of bottom-feeders preying on also aimed to ensure the supply vulnerable borrowers – not more chain didn’t grind to a halt at regulation of responsible lenders, the start of stink-bug season on including those in automotive. September 1. That was the Financial Services A shipping company warned Federation’s view on the latest of a rise in charges because of a review of legislation. It warned global cap on sulphur in marine regulatory burdens and higher fuel from January 2020. overheads would be placed on Nissan NZ was provided with members and car dealers. software to update lithium-ion The NZTA was concerned about what battery controllers in 30kWh Leafs. possible conflicts of interest in the The charge was $100 plus GST as used-imports supply chain and said they were used imports. it would review service-provider policies. drives SEPTEMBER: Heat treatment The Energy Efficiency and The supply chain was expected Conservation Authority launched a to cope with the high-risk BMSB booklet to provide dealers with an Merv Whiston? period, although teething overview of electric cars to better Business Development Manager - Canterbury problems were possible. Heat- equip them to answer buyers’ treating used cars from Japan questions and boost sales. “Working with dealers, helping them to maximise F&I and approved pathways for new opportunities has been a passion of mine since I first vehicles were mandatory. DECEMBER: Airbag action started to sell cars. I’ve been in the auto industry for Issues had been exacerbated by The MIA was working with the NZTA over 30 years, and known Steve Owens since 1989. Typhoon Jebi hitting western Japan. to contact owners with outstanding Traders reported lower business recalls for alpha-type airbags. About I joined the company when Steve established activity, the dollar’s cross-rate with 85 per cent of NZ-new vehicles and Provident Insurance. My clients are a great and the yen tumbled and there was a half of used imports had their call- diverse group of people, most of whom I have known lack of storage space in Japan. backs closed out and 41 per cent for many years. They know that I’m highly motivated The Productivity Commission were outstanding. and they know that we are committed to helping said a “feebate” scheme for the Consultation on the NZTA’s them succeed in their business. light-vehicle fleet would help New review “managing the integrity of Zealand move to a low-emissions vehicle certification inspection” Why so many new dealers are partnering with economy. Switching to EVs and was extended to February 20, Provident. low-emitters was also help. and agency boss Fergus Gammie At Provident we have a strong partnership culture resigned because inadequate with our dealer clients. We don’t see ourselves as OCTOBER: Typhoon action enforcement meant about 21,000 Shipping and logistics companies vehicles needing WOF retests. an insurance company but more a part of the motor were back on-track after Typhoon Two buy-out offers for Trade Me industry. Jebi. ATL’s operations in Kobe had were received. Apax Partners’ was We have a set of values that drive us and serve as been destroyed, but were soon to accepted after it matched Hellman our guiding principles. You can’t just talk about your be operational with new heat- & Friedman’s $2.56 billion bid. values, you have to deliver on them every hour of treatment facilities. About 300 every day. That’s what we do, with product training, vehicles were subject to total-loss MIXED BAG OF RESULTS systems and support to help generate higher levels insurance claims. Last year saw new-vehicle of F&I profitability and customer service. We do what A judge said there was a public registrations holding their own and we promise and that’s our difference.” interest in Dermot Nottingham used imports taking a hit. There being bankrupted to find out if were 108,210 new cars and 53,555 claims he made in court were new commercials sold for a total of correct. Nottingham – well- 161,765. In contrast, 147,637 used known for his past allegations imported cars and 12,167 used of odometer tampering – said commercials were sold totalling creditors had paid him about $2m, 159,804 – down 10.6 per cent. www.providentinsurance.co.nz but he was penniless. Full coverage from p33.

www.autofile.co.nz 9 news

In brief Watchdog issues Swedes triumph in Japan for second year in row Volvo has achieved the lending warning first consecutive victory for an importer in Japan’s he Commerce Commission In another matter, information car of the year award. Its has highlighted areas of provided wasn’t properly assessed. XC60 won the country’s concern it wants to see the What was obtained by the lender top trophy in 2017 and the financeT and automotive industries suggested the borrower had less XC40 captured it last year improve in. than $2 in his bank account when at the Tokyo International Dot Benson, deputy general taking out the loan. Exchange Centre. counsel – credit, says responsible In a different case, a company The XC40, pictured, picked up an early lead in the count. Toyota’s lending is a top priority for approved a loan to a beneficiary. Corolla Sport came back midway through to briefly overtake the Swedish 2018/19 because of continued Although the financier had bank car before the latter sped away to win by 49 votes – 363 to 314. consumer harm, particularly statements from the borrower, The Volkswagen Polo came third with 197 votes, Toyota’s Crown was around compliance it failed to make fourth on 170 and the Mitsubishi Eclipse Cross polled fifth with 165. with responsible sufficient inquiries. Takayuki Kimura, chief executive officer of Volvo Japan, says: “We’re lending principles, There were errors ecstatic with this back-to-back victory. The XC40 is the perfect size and and affordability in its assessment – for competitively priced for the Japanese market, so we hope to transfer this and suitability example, no allowance award into solid sales.” assessments. for rent or power. The Honda Clarity PHEV won the innovation award, the BMW X2 The commission Bank statements captured the “emotional award” and Daihatsu’s Tocot won the small has concerns around disclosed significant mobility gong. The Toyota Gazoo Racing team scooped the special a range of conduct. cash withdrawals, but achievement award. This includes reliance Dot Benson the company treated on bank statements without making those as discretionary income, so it Dealerships secure high-performance franchises further enquiries about income was formally warned for failing to Davie Motors Holden in Manukau, South Auckland, and Robertson and expenses, errors and incorrect make reasonable inquiries. Holden in Palmerston North have added the HSV Colorado Sportscaster, assumptions about expenses, and There have been problems with Chevrolet Camaro and Silverado to their ranges. using affordability assessments unfair contract terms covering Andrew Lamb, regional manager of HSV New Zealand, says they were based on – not income and expenses ongoing direct debiting, holding selected after careful consideration. – but income ratios. multiple direct debts and entire “While we had a large number of Holden dealers in Australia and New Then there’s the treatment of the agreement clauses, while breaches Zealand apply for the HSV franchise, only two additional dealers in New partner’s income when that person of disclosure requirements have Zealand were selected.” has no liability under the loan or arisen from automated systems. their expenses aren’t taken into The commission is disappointed Family-friendly vehicle scoops guild’s top honour account, and back-to-back finance – fees charged for arranging finance The New Zealand Motoring particularly high cost and short term are still problematic with some Writers’ Guild has chosen – being approved for consumers. lenders recovering more than their the Subaru Forester as Other issues are advertising entire business cost in fees, while its car of 2018. The SUV, to borrowers already in default, some providers aren’t taking a Motor Vehicle Finance pictured, was selected from offering cash-backs and incentives disciplined approach to identifying Easy finance for your customers means more sales for you! a shortlist of 10. for high-cost lending, and costs closely connected with the Wallis Dumper, the advertising that targets vulnerable matter giving rise to charges. marque’s managing director, consumers, she told delegates at It has already announced says: “We are honoured, but not surprised, it was voted the best vehicle as the Financial Services Federation’s motor-vehicle sales as being At Oxford, we offer quality finance packages for motor vehicles to both it’s a game-changer for us. We envisage this award will help further forge recent annual conference. among the areas it will focus on private and business customers. We’ll ensure your customers’ financial the success of our all-new medium-sized SUV and see it achieve similar Benson made particular during 2018/19 with work to sales records to our other SUVs.” reference to motor-vehicle lending centre on misrepresentations needs are met, so you can get on with doing what you do best. “The Forester offers the durability and functionality families want, in the case of a car trader dealing about vehicles and the Consumer alongside next-generation safety technology,” adds guild president with applications for loans on Guarantees Act (CGA), such as For more information and personal service, get in touch with us today. Richard Edwards. “At $39,990, it proves New Zealand’s new-car market behalf of a financier failing to make dealers refusing to fix cars. offers value to buyers never seen before.” enquiries required by legislation “There are circumstances Twenty-two guild members voted on 2018’s eligible cars before a into affordability. when a lender can end up with sub-committee selected 10 finalists. In the interests of statistical accuracy This involved lending to CGA responsibilities when the Auckland Levin Christchurch and regional assessment, only vehicles driven by 75 per cent of voting beneficiaries with existing loan car is security for the contract,” members were considered. commitments without making any said Benson. “However, when the 0800 88 44 66 0800 263 264 0800 735 562 The Forester was first launched in 1997 and has always been a steady- enquiries about income or expenses, sale is subject to finance, this is seller, while in recent years other brands’ medium-sized SUVs sales have and in another case obtaining likely to involve an overlap with surged. Visit www.autofile.co.nz for more on this story. insufficient information. responsible lending.” oxfordfinance.co.nz 10 www.autofile.co.nz Motor Vehicle Finance Easy finance for your customers means more sales for you!

At Oxford, we offer quality finance packages for motor vehicles to both private and business customers. We’ll ensure your customers’ financial needs are met, so you can get on with doing what you do best.

For more information and personal service, get in touch with us today.

Auckland Levin Christchurch 0800 88 44 66 0800 263 264 0800 735 562 oxfordfinance.co.nz www.autofile.co.nz 11 news Agency’s work under spotlight t

review ordered by the certifiers, training course providers, about the scope and seriousness of government into the licensing agents, road-transport failures,” he adds. NZTA’s work aims to operators and motorists. “That’s why the board provideA an independent assessment The MoT review will probe how appointed law firm Meredith of its regulatory functions. the NZTA is delivering governance, Connell to address the backlog The investigation is being leadership, engagement and and provide an oversight of the carried out by the Ministry of enforcement, and will focus on agency’s regulatory function – a Transport (MoT) and should be if it’s performing as an effective move I support. completed by the end of March. riskbased regulator. “Meredith Connell is making good It is in addition to the NZTA’s own It will also evaluate how the progress. All identified high-priority review following the agency’s board agency is managing the motor- files have been reviewed. Since then, raising concerns in late September vehicle register following a given the information I became that its regulatory function had request to Phil Twyford, Minister of aware of around the agency’s failed – mostly in regards to a Transport, from the state services performance, it’s appropriate to ask backlog of compliance cases being commissioner about the use of “I’m disappointed for external advice. inappropriately managed. external security consultants by in the way the “There are issues that need to It has since transpired about government agencies. NZTA has been be addressed so deficiencies are potentially 20,000 dodgy warrants Although the MoT is leading the identified. That’s why we’re asking of fitness (WOFs) have been issued review, it has engaged consultant carrying out for advice on changes required. resulting in some testing facilities Martin Jenkins for external support. its regulatory “As I made clear when I first being suspended. In one case, a “I want to be sure the ministry’s became aware of the backlog, I’m man died when his seatbelt failed performance as the monitor is also functions” disappointed in the way the NZTA in an accident shortly after his assessed so it can be as effective as - Phil Twyford has been carrying out its regulatory vehicle passed its WOF. possible,” says Peter Mersi, secretary functions. Our government is Other cases cover vehicle of transport and chief executive of the MoT. The review will consider making safety a priority.” the ministry against best practice The MoT-led review comes hot in regard to monitoring the NZTA’s on the heels of an announcement regulatory function.” on November 29 that Meredith Twyford says the review comes Connell had completed its review amid concerns around the agency’s into the 850 most-urgent open regulatory role and compliance regulatory compliance files. This backlog. has led to a significant increase in an independent choice “When this issue was brought enforcement. to my attention, I was concerned “Progress has been made and 

Quest Insurance offers: Mechanical Breakdown Insurance – backed by AA Roadside Assist Purpose of review Comprehensive Motor Vehicle Insurance The review of the NZTA and and make recommendations so – including learner and restricted license cover. work done by the Ministry of ministry monitoring can be as Weekly, fortnightly & monthly instalment options now Transport (MoT), which has been effective as possible. available to match your customers pay cycle ordered by Phil Twyford, aims to Topics being considered advise the minister, the secretary include whether the NZTA’s Guaranteed Asset Protection of transport and the state services management and board Lifestyle Protection Insurance commissioner on whether the MoT made available – in a timely should have identified significant and accessible way – relevant performance issues with the information to support the MoT agency’s regulatory function earlier. to perform its role. If the agency It will also establish if the wasn’t doing so, it will establish ministry should have provided if the ministry made standard advice to ministers about these enquiries that were appropriate. If you are a forward thinking motor vehicle trader, or financier, issues earlier or in stronger terms. The review will also find out looking for a trusted vehicle insurance partner, call Quest. The review will consider if the ministry’s past and revised the MoT’s performance of its approach to monitoring crown- Contact: Simon Moore monitoring function against its own entity performance is fit for ph. 021 149 2266 expectations and best practice. purpose, and if this MoT function e: [email protected] It intends to provide advice is adequately resourced.

12 www.autofile.co.nz t reviews completed of files where review to ensure people adhere to public safety was potentially at risk,” what they promise to deliver”. explains Steve Haszard, managing The committee heard Gammie’s partner at Meredith Connell. leadership saw little change at “We have provided the agency, even when it was recommendations. On the basis clear there were issues with how of these and following legal it implemented its regulatory role. processes, the NZTA is stepping “Gammie was with us about two- up enforcement across regulatory and-a-half years. He left it as it was.” areas it has responsibility. Stiassny adds he came across “This work provides reassurance problems when reading briefing this review is prioritising safety. papers after being appointed in The agency is working hard to put April 2018, including those around Mark Ratcliffe, left, is Fergus Gammie’s interim replacement as chief executive officer things right.” of the NZTA compliance. The NZTA recently began The committee also heard contacting people whose vehicles actions would be taken. In system, but says most mechanics from the MoT. It was unaware of may not have been properly resigning, I note the focus of the do a good job. the agency’s issues in great detail. checked during WOFs with owners agency has changed. “I wouldn’t be napalming However, it sensed there was a having them rechecked free of “I ask support be given to the everybody. I’d say we’re going problem. charge via an agency voucher. board, management team and to regulate and you are going to The ministry felt “a need for Enforcement action has become Meredith Connell as they work come back into line. Since almost greater prioritisation and focus”, increasingly visible as further legal towards resolving outstanding the inception of the agency, we’ve but didn’t see “what appears to be and other processes continue. issues, and developing a stronger had what some may call a laissez- systemic failure”. “These actions take time as regulatory enforcement framework faire approach to regulation.” Twyford says the MoT’s role we’re legally bound to follow to ensure confidence in the However, Stiassny is optimistic isn’t above question. “The ministry due process,” says Haszard. “In agency.” about the future. He describes the is the statutory monitor for the some cases, further investigation Gammie’s interim replacement problems as “easily fixable” and agency and it’s fair to ask about the is required to meet evidentiary is Mark Ratcliffe. The former chief will come down to, “what we look discharge of that role over the past requirements or legal processes executive officer of Chorus is due at, what we control and what we nine years.” need to run their course.” to take up the position on January The subsequent fall-out from 14 until someone is recruited Meredith Connell’s investigation permanently. resulted in Fergus Gammie, Michael Stiassny, NZTA chief executive officer of the chairman, describes Ratcliffe as NZTA, tendering his resignation highly experienced with expertise on December 20. By stepping in running national infrastructure. aside, he hopes the review and “He was the CEO of Chorus from  improvement at the agency can be 2008 when it was part of Telecom completed without distraction. and through its demerger before “I’m proud of work I’ve overseen leaving in 2017.” A better deal for the during my tenure, particularly Brett Gliddon, the agency’s setting the NZTA on a path towards general manager of system design being a modern multi-modal and delivery, was appointed to fill Motor Vehicle Trade transport agency,” says Gammie. Gammie’s boots on an acting basis “This has included establishing from January 1-13. nFlexible credit facility available to fund New Zealand’s first light-rail Stiassny says he had discussions vehicles in transit or on your yard project, setting up a directorate with Gammie about his future, but to push forward safety outcomes, it was the latter’s decision to resign. nAccess to stock when you want to buy, piloting digital mobility solutions “I’ve made it clear, not only when you have the available cash in Queenstown and Auckland, accountability shouldn’t stop nFree up your capital and grow and reopening SH1 from Picton with Gammie,” he adds. “That your business to Christchurch in December would be unfair. There are a lot of 2017 one year after the Kaikōura people who should share in the nOnly available to registered earthquake. responsibility for this.” motor vehicle traders “However, as I said in October, Stiassny appeared before the the agency has long been reliant transport and infrastructure select on education and self-regulation committee before Christmas to give rather than focusing attention and an update on the crisis at the NZTA. resources on ensuring regulatory He estimates the cost of the compliance and enforcement. scandal will come in at less than $5 Ph: 09 320 5646 “I also said the public can million and admits there have been Contact us now to find out more www.autobridge.co.nz expect increased enforcement major problems with the WOF

www.autofile.co.nz 13 new cars Jewel of ‘magic carpet rides’

ustomer deliveries of the compartment, which deploy two “super luxury” Cullinan electronically opening seats to will start in New Zealand form a viewing suite. Cduring the first quarter of this year. The cabin has two set-ups – Named after the largest lounge or individual seats. The diamond ever discovered, which former caters for families with is now part of the British Crown space for three people in the back entry” through coach doors via a flat architecture allows for Jewels, it is Rolls-Royce’s first high- and electrically assisted one-touch floor. Door handles feature buttons modular scalability factoring in bodied, all-wheel-drive offering, fold-down operation for the first that activate a one-touch electric requirements of future models. and the second to boast its time in a Rolls-Royce. closing-assist function, which can Higher and shorter than proprietary underpinning. Individual seat configuration also be used inside. the new Phantom, the Cullinan This aluminium spaceframe is the luxury mode with two Central and rear information combines this spaceframe with works with an advanced drive spacious rear seats being separated screens are touch-sensitive allowing self-levelling air suspension. system, four-wheel steering and by a fixed rear-centre console. the driver to quickly select functions, The SUV has a revised 6.75-litre four-corner air suspension. These This option incorporates a drinks map views and vehicle set-up. The twin-turbo V12 engine for 420kW and other innovations bring the cabinet with branded whisky front portal can still be controlled of power and torque of 850Nm at marque’s signature “magic-carpet glasses and decanter, flutes for from the rotary controller on the 1,600rpm. ride to unpaved terrain without bubbles and a refrigerator. main console, along with the off- Prices start from $505,000 for a sacrificing on-road behaviour”. The Cullinan’s air-suspension road button and suspension height- lounge-seat set-up. The individual- The Cullinan’s bespoke features system offers versatility. The car can adjustment controls. seat configuration is available include a configurable storage be lowered by 40mm for “effortless Rolls-Royce’s all-aluminium from $535,000. Vehicles wanted Switch to power pony dealers Buying now

VEHICLES WANTED All Audi, Porsche, Jaguar, Land Rover and Volvo Models ord has unveiled a near- in the 1970s when the energy crisis future plan to replace 75 brought about stringent emissions per cent of its line-up with and fuel regulations, which also hybridF and electric vehicles (EVs) gave smaller-engined Japanese Jeff Dacombe . 021 532 355 . jeff[email protected] over the next four years. rivals a more level playing field. They include a hybrid Mustang Australasia’s appetite for the pony by 2020 with the iconic coupe and puts Ford in a strong position locally convertible already in development. when it comes to product selection. LATE MODEL FORDS & MAZDAS WANTED The blue oval says it will be The marque plans to keep its V8 “all about delivering V8-like going strong, recently increasing performance with more low-end output to 339kW and 556Nm torque”, suggesting a modified from the five-litre, and teasing its version of the 2.3-litre EcoBoost upcoming Shelby GT500 that will with boosted electric output. be the most powerful street-legal Call Jason Robb The current 10-speed automatic Mustang ever. Ph 0274 133 222 could back the powertrain instead of Hybrids have come a long a continuously variable transmission way in recent years. Supercars To advertise here, contact: found in many hybrids. including Porsche’s 918 Spyder It’s not the first time Mustang and McLaren P1 take advantage of [email protected] has made a shift in powertrain extra power of electric motors to or ph 021 455 775 selection. It moved to four cylinders achieve optimal performance.

14 www.autofile.co.nz new cars From video game to production

cLaren has reportedly Once just a gamer’s dream, McLaren’s 745kW is the prime candidate to confirmed a one-off Ultimate Vision Gran Turismo is power the bespoke vehicle. becoming a reality hypercar inspired by a That would also align with the Mpopular video – and code-named marque’s Trade 25 business plan, BC-03 – is now being built. which states McLaren’s entire sports Its name stands for “bespoke and supercar range will feature commission” with the number some kind of hybrid system by 2025, referring to the fact this is the third as well as the arrival of a successor of its kind. to the P1 hypercar. Also known as the McLaren Rumours suggest the BC-03’s Ultimate Vision Gran Turismo, the customer is based in the US and that first was the X-1 supercar from 2012 McLaren’s dealership in Newport and the second was the MSO R Beach, California, is involved. revealed in 2017. The BC-03 is anticipated to While almost everything about The virtual racer uses a four- Currently in the hands be a track-focused hypercar that the BC-03’s underpinnings and body litre twin-turbo V8 with electrical of McLaren Special Operations will be lighter than the three-seat remains under wraps, the Speedtail’s assistance for 846kW and 1,274Nm (MSO), it’s said to be inspired by Speedtail and offer more power hybrid powertrain of more than and weighs in at 999kg. the Vision T concept designed for than the naturally aspirated V8 the on-screen game Gran Turismo Senna model. Sport in late 2017. It will cost a lot more than The marque has declined to either of those two performance share any further details “because models, which start at about the specifics of the project are NZ$3.3 million and NZ$1.5m confidential between MSO and respectively, because it’s a its client”. one-off build. Green power’s black Vehicles wanted nfiniti has revealed its Project The dual-hybrid generates 420kW Black S to showcase how whereas the conventional VR30 Formula One dual-hybrid produces up to 298kW. The power- Toyota SUVs & Utes Ielectric powertrain technology can to-weight ratio is about 235W/kg for be deployed in road cars. a 0-100kph of less than four seconds. Following a design study in The powertrain employs three 2017, the prototype illustrates the motor-generator units (MGUs) with brand’s commitment to high- the single MGU-K unit gathering performance electrified engines kinetic energy from braking. drawing on expertise from the Twin electric turbochargers are Renault-Nissan-Mitsubishi Alliance. fitted with two units to capture heat The marque says its boasts energy from exhaust gases, enabling greater aerodynamic efficiency and the engine to generate power under Hilux • Land Cruiser • Prado high levels of downforce, as well as a braking and acceleration. functional motorsport-inspired look. The marque will first track test The Project Black S fuses high- the Project Black S in 2019. A road- performance dual-hybrid engine legal production version may follow with the marque’s VR30 three-litre to compete against hybrid sports V6 twin-turbo. Its energy-recovery cars, such as BMW’s i8 and Lexus’ LC. system contributes to greater The prototype has been power and torque than the developed with Renault Sport’s We are always looking to purchase late model powerplant it’s based on. F1 team as part of Infiniti’s aim to electrify its portfolio from 2021. NZ New cars aNd commercials miles motor group Paul Curin 0274 333 303 [email protected]

www.autofile.co.nz 15 EV focus Charging up no big drama any media stories three to four hours. their cars charged by – people like the owners of car about electric vehicle A lot of new owners they just plug in when JRN427 to switch charging patterns (EV) angst focus on the may have to spend they get home, and the to be more like the smarter owners Mavailability of rapid chargers along $400-$600 to set up vehicle works out the of KQM121 and JFL445. our highways. Actually, more than plugs, so car dealers energy and time needed Although the price of electricity 95 per cent of charging happens should ensure that their to fill up. It automatically varies from place to place and at the owner’s home or a business’ clients factor this into starts the charging as late with supply contracts, it’s relatively car-pool garage. purchasing decisions. as possible to reach that stable in the longer run. The costs EV owners love being able In Norway, it’s Henrik Moller, co-founder, deadline. of running EVs are, therefore, more Flip The Fleet to plug in when they get home mandatory for EV plugs Most of the charging predictable than for combustion and have them recharge while to be installed in new houses of Leafs KQM121 and JFL445 vehicles – the pain of recent petrol they sleep. It’s a convenient, – maybe we’ll have similar depicted in the graph is controlled price hikes shows how disruptive dependable and much cheaper regulations here eventually. by this system to use cheaper early- international oil-price fluctuations way to power your car. The cost of a unit – one morning electricity. If an immediate and exchange rates can be. Data given to Flip The Fleet kilowatt hour – of electricity top-up is needed during the day, Vehicle-to-grid charging is by more than 1,200 New Zealand varies from 3c to more than 40c you hit a button when you plug in being trialled in Norway, Japan and owners shows propulsion of an EV in different regions and between to override the timer. the US. The EV draws electricity costs about one-quarter of a petrol supply contracts priced in Using a timer helps reduce from the national grid or solar vehicle of the same size and age. different ways. Some companies greenhouse gas emissions from panels at slack times of the day, New owners at first have to offer a cheap off-peak rate, coal and gas-fired generators that and gives it back to the grid during concentrate on battery levels and usually from 9pm-6am, or a spot come on-stream to meet morning peak demand when people need learn how long it takes to recharge price that fluctuates with the and evening peak-electricity it for cooking, lights, televisions so the car is ready when next wholesale market price paid by demand periods. and, most of all, water heating. needed. Pretty soon that becomes the electricity supplier. Our national goal for a net This could save the country a lot of second nature, almost sub- Many EVs have on-board zero-carbon economy by 2050 money by avoiding expensive and conscious. It’s not much different timers so the owner can depends partly on getting more polluting coal and gas electricity from ensuring your cellphone is programme when they want people into EVs, but also getting that fires up just for peak periods. charged before going out again, so Software controls the energy there’s no big drama in doing the Monitoring power demand exchange so the EV is fully charged same for an EV. 2.0 when needed by using cheap Charging your vehicle at home electricity, but the owner sells the y (kW) eak eak is also safe provided you have energy back to the grid at a better 1.5 off-street parking within six metres price during peak periods. er the d a ning P of a plug, or better still, can drive v Vehicle-to-house systems are o ening P into a garage next to a socket. An 1.0 also coming whereby batteries for E v Mo r ordinary three-pin household plug electric cars are used to power your delivers eight amps, so filling the house or office during outages. er demand KQM121

w 0.5 battery of a small EV, such as a A future is coming when EVs will JFL445 Nissan Leaf or Hyundai Ioniq, from not just be cars for getting us from JRN427 nearly flat to almost full is likely to Mean p o 0.0 A to B. They will also be mobile take 10-12 hours. energy-storage units saving us all 0 4 8 12 16 20 24 Many homeowners and Time of day (hour) money and providing back-up in businesses install a 16-amp plug, Forty-seven Nissan Leafs and e-NV200 vans have a “black box” under the dashboard. It plugs into times of trouble. the OBDII port to intercept the data stream from the EV’s CAN bus and sends it to Flip The Fleet often the blue Commando-type via the 3G network. About 230 fields are gathered, mostly every two to three minutes, to monitor used for caravans. Filling a Leaf vehicle performance and areas, such as battery temperature and charging. This graph shows Henrik Moller is a retired sustainability when in the day three test-cars’ batteries are charged with the heavy black line being the average. scientist. Additional research by Daniel Myall or Ioniq with one of those takes This research will help estimate the EV fleet’s impact on the national grid. and Dima Ivanov. Visit www.flipthefleet.org

Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price listed on Trade Me last month: for the month: Eye on EVs 7.4% 75.0% -13.9% +95.2% -14.0% +41.0% • Nissan Leaf • Tesla Model X $24.6k • BMW i3 • Hyundai Kona Compared to Compared to Compared to Compared to Compared to Compared to • Renault Zoe last month prior year last month prior year last month prior year * Figures as per the end of December 2018

16 www.autofile.co.nz EV focus Battery solutions on the agenda usinesses have joined forces market for end-of-life batteries from value for as long as possible, rather storage in commercial and to stop mountains of e-waste EVs to home-energy storage. than returning them to the ground residential applications. being created by the ever- Mackenzie says the group will through end-of-life disposal,” it says.  Global developments in waste Bincreasing number of large lithium- conduct research into the scale of the “The convergence of transport management and recycling. ion systems in New Zealand. issue and develop recommendations and energy systems means we “We are working together to The Battery Leaders’ Group on how a product stewardship have a unique opportunity to drive research and evaluate the nascent aims to find end-of-life solutions scheme could be implemented. change, contribute towards building New Zealand end-of-life battery for batteries, including those for “We’re initially aiming to identify a more circular economy, and create market,” adds the statement. electric vehicles (EVs). and quantify business opportunities the environmental, societal and “Collaborating now will better “The number of EVs on our roads designed to give second-life use to commercial future we wish to see. prepare us – both as a country and is growing and, with a battery life of large batteries,” he explains. “Achieving a shift across the value as individual market participants – five to 15 years, this could become “For Vector, some uses could be chain will require pre-competitive to find sustainable solutions as the a significant waste stream to deal in network ancillary services, such as collaboration. That’s why we have market emerges.” with,” says Simon Mackenzie, chief grid stability or displacing temporary convened this group.” Total EVs by region executive of the Vector Group. diesel generation in some cases. Following the philosophy of what Northland 372 “We’ve formed this group to “This is an excellent example goes around, comes around, the Auckland 5,091 tackle the issue head-on. It will be of businesses coming together to group is seeking out solutions for Waikato 544 good for the country if we succeed in solve a shared problem in a way different types of batteries with the Bay of Plenty 362 reducing waste to landfill and group that supports a low-emission, high- focus firmly set on lithium-ion. Hawkes Bay 188 members will benefit through pre- productivity economy.” These include stationary systems, Gisborne 37 competitive collaboration to unlock According to a joint statement such as those used in home-energy Taranaki 140 parts of the battery value chain.” published by the group, its storage, and mobile batteries – for Manawatu/Wanganui 329 The leaders’ group includes members see themselves as example, from electric cars – in Wellington 1,621 representatives from Audi, BMW and organisations across the battery- various contexts. They cover: Nelson/Marlborough 384 Toyota in this country, Vector, the value chain that share common  Climate change and the role Canterbury 1,576 Scrap Metal Recycling Association of sustainability challenges. of batteries in decarbonising West Coast 10 NZ and Waste Management NZ. “Once valuable metals and raw energy and transport systems. Otago 640 It has released a joint statement materials have been taken out of the  The rapid uptake of EVs. Southland 80 Table 1 of commitment to researching the ground, it makes sense to retain their  Increasing the use of battery Source: Ministry of Transport, Dec 14

EV share of EV fleet size 2017-2018 EV percentage share of registrations EV fleet size 2017-2018 registrations 2.25% 12000 New light pure electric Used light pure electric New light plug-in hybrid Used light plug-in hybrid New light pure electric Used light pure electric New light plug-in hybrid Used light plug-in hybrid Jan 2014 2% 10800 Jan 2014 100 0.025% 44 13 1 55 1.75% 9600 Feb 0.065% 54 Feb 99 45 24 1 8400 1.5% Mar Mar 100 0.186% 54 54 1 53 7200 1.25% Apr 0.234% 52 6000 Apr 103 57 911% 1 4800 May 0.177% Mar 111 62 1150.75% 2 51 3600 Jun 0.103% 0.5% 50 Jun 114 63 135 2 2400 Jul 0.25% Jul 124 0.120% 69 146 2 49 1200 0% 0 Aug 0.112% 48 Jul Jul Jul Jul Jul Oct Oct Oct Apr Apr Apr Oct Oct Feb Feb Feb Jun Jun Jun Apr Apr Nov Nov Nov Sep Sep Dec Aug Aug Dec Aug Aug Mar Mar Mar Feb Feb Jun Jun Nov Nov Sep Sep Aug Dec Aug Mar Mar Mar Mar 129 78 156 May 2 May May Sept Source: MoT, Dec 14 Jan 2018 Jan 2016 Jan 2017

Sep Jan 2017 Jan 2018 Sep 132 0.113% 81 175 2 47 Oct Oct 134 0.116% 89 192 2 46 Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price Nov 0.144% 45 Nov 137 104 207listed on Trade Me last2 month: for the month: Eye on EVs Dec Dec 0.121% 44 7.4% 75.0% -13.9% +95.2% -14.0%139 +41.0%112 224• Nissan Leaf • Tesla 2Model X $24.6k Jan 2015 0.173% • BMW i3 • Hyundai Kona 43 Compared to Compared to ComparedJan to 2015Compared to Compared145 to Compared123 to 248 2 Feb • Renault Zoe last month prior year last monthFeb prior year last151 month 0.145%prior year134 261 2 42 Mar * Figures as per the end of December 2018 Mar 151 0.239%145 307 3 41 Apr 0.160% Apr 161 154 321 3 40 www.autofile.co.nz 17 EV percentage share of registrations May Mar 163 0.128%166 3352.25% 4 39 2% Jun 0.199% Jun 179 179 3551.75% 6 38 1.5% Jul 0.196% 37 Jul 184 203 3701.25% 10 1% Aug 0.128% 36 Aug 189 211 3860.75% 11 Sep Sep 0.185% 0.5% 35 193 227 4100.25% 11 Oct Oct 0.166% 0% 34

195 250 424 Jul 12 Jul Jul Jul Jul Nov Nov Nov Nov Nov Sep Sep Sep Sep Mar Mar Mar Mar Mar May May May May May Sept Nov 0.195% 33 Nov 199 272 441 Jan 2014 Jan 2015 14 Jan 2016 Jan 2017 Jan 2018 Dec Dec 206 0.236%308 451 15 32 Jan 2016 Jan 2016 212 0.260%349 463 17 31 Feb Feb 213 0.161%370 476 18 30 Mar Mar 215 0.301%410 505 19 29 Apr Apr 223 0.418%454 542 22 28 May Mar 227 0.361%508 566 25 27 Jun Jun 318 0.745%563 610 29 26 Jul Jul 352 0.610%638 643 39 25 Aug Aug 372 0.479%698 670 56 24 Sep Sep 385 0.437%756 695 74 23 Oct Oct 398 0.590%847 738 91 22 Nov Nov 502 0.820%926 766 102 21

Dec 585 996 779 116 20 1 Jan 2017 645 1100 801 133 19

Feb 722 1212 826 146 18

Mar 747 1331 867 168 17

Apr 761 1459 894 183 16

Mar 826 1619 933 202 15

Jun 873 1802 995 218 14

Jul 908 1996 1026 246 13

Aug 953 2212 1068 278 12

Sep 1002 2423 1107 312 11

Oct 1107 2690 1138 345 10

Nov 1203 2982 1174 398 9

Dec 1265 3212 1199 456 8

Jan 2018 1329 3492 1231 493 7

Feb 1359 3664 1294 514 6

Mar 1426 3829 1350 561 5

Apr 1478 4075 1406 583 4

Mar 1553 4434 1487 636 3

Jun 1635 4764 1541 676 2

Jul 1678 5114 1616 740 1

Aug 1753 5433 1678 783

Sep 1835 5739 1758 809

Oct 1908 6200 1819 850

Nov 1964 6525 1900 875 Dec

1 industry profile Leaf out of Norway’s book ales of hybrid and electric vehicles (EVs) in a Scandinavian country far outpace those runningS on fossil fuels, cementing its position as a global leader in the push to combat climate change. t Christina Bu, secretary general of the Norwegian Electric Vehicle Association (NEVA), believes that the rapid adoption of EVs heralds greater changes ahead. During a visit to New Zealand, she shared these reflections, and explained how her organisation aids its members and plays a vital role in shifting paradigms. Bu is a powerful voice in the EV industry. NEVA is the world’s largest EV owners’ group and has overseen the country’s fast transition to electric cars. NEVA also plays an important role internationally when it comes to promoting the adoption of EVs. “We have almost 70,000 members, we’re reaching that next month and it’s growing. They pay a yearly fee and that’s how we finance 30 employees.” Bu stresses it’s not Norway’s oil that’s financing the incentives for Christina Bu, secretary general of the electric cars. Norwegian Electric Vehicle Association “We have high taxes on cars. That money is used to help explains it comes down to Norway “In a little bit, well in more than has one key driver – taxation. introduce new technology. having high ambitions for reducing six years, all new-vehicle sales Bu believes that taxing internal “We’re now close to 300,000 EVs global and local CO2 emissions. will be fully electric, which some combustion engine (ICE) vehicles in Norway, 190,000 fully electric “We have, in collaboration with people say is too ambitious, but I’m has helped to drive Norway’s and 90,000 plug-in hybrids. Out of the EU, decided to reduce inland sure it’s possible,” says Bu. electric uptake. the share of new vehicles sold, 29 CO2 by 40 per cent by 2040. We The plan supports her country’s “We have a long history of per cent are fully electric and 18 don’t have coal plants to shut down, CO2 reduction targets under the taxing cars, we are a country that per cent are plug-in hybrids.” such as in Germany. We have started 2015 Paris Agreement for which likes to tax and we’ve done it for What Bu finds most interesting with a clean grid, so we have to nations have agreed to ensure years,” she explains. is how well consumers have tackle transport. We can also look emissions goals are met. “When buying a new [ICE] reacted to EVs. at agriculture and housing, but the In September 2018 alone, 45 car in Norway, you have to pay “Back in 2012, market share was easiest way is to electrify transport.” per cent of new cars sold in Norway purchase tax. Then there’s GST at three per cent, now it’s 47 per While their government pushes were fully electric and in Bergen, on top, which is 25 per cent, so cent. This has happened in less than public transport, Norwegians – its second-biggest city, EVs had a buying new is expensive.” six years. Consumers adopt really similar to Kiwis – love owning cars. market share of 58 per cent. However, zero-emission quickly, it’s becoming the norm and “We could double public “If we can do that in one month vehicles in Norway are not taxed. this is down to our policies in place. transport, but aren’t going to get in 2018, I’m pretty sure we can do This results in low-emission and ICE “In 2010, 75 per cent of anywhere near our CO2 targets 100 per cent in 2025.” vehicles becoming more or less the consumers chose a diesel when because there will always be people same price. buying a new car. If we jump eight who need a car, so we need to TAXES KEY TO SUCCESS Bu believes this is the main years ahead, car importers in electrify them as soon as we can.” As countries around the world, reason for Norway’s EV success. In Norway don’t have EVs, half of their Bu’s government has also set a including China, the world’s biggest most other countries, including market is gone.” goal for all new passenger cars and vehicle market, try to encourage New Zealand, consumers have to Why has her country jumped on light commercials sold in 2025 to more people to buy EVs to fight pay a lot more for an EV. the EV bandwagon so quickly? Bu be zero-emissions. climate change, Norway’s success She acknowledges her 

18 www.autofile.co.nz industry profile

Electric cars hit 52 per cent market share in Norway at the beginning of 2018

t country’s EV technology is still in tackling the charging issue. We electric vehicles in the country expecting an excess in energy too its development phase and that don’t have really anywhere to look would increase electricity and we’re close to countries so charging-station infrastructure “is as there aren’t any other countries demand by 3.2 per cent, which we can export excess electricity. imperfect”. that have done this on a large scale the grid can handle. Electricity in Norway is cheap.” “That’s why we have lots of yet, so Norway is the test.” Stresses can be countered with local incentives as well, such as smart-grid and smart-charging MARQUES SLOW OFF MARK not having to pay tolls, ferries, EFFECTS ON THE GRID strategies. The EV market needs to develop more public parking is cheaper and EVs A big challenge, however, comes “Smart charging will help for sales to keep growing, says Bu. can use bus lanes. It would have from increased demand on the balance the grid, EVs don’t need to “In the smaller-vehicle segment, been impossible to attract so many electricity grid – an issue all charge during peak hours and cars almost half is electric. However, consumers otherwise.” jurisdictions will eventually have to are parked longer than they need in the larger car market, only 12 However, these perks, which cost face as they transition away from to be charged. per cent are electric. Norway, like the government almost $1 billion ICE vehicles. “If owners charge their cars New Zealand, is waiting for bigger last year, are due to be phased out If there’s a steady increase in overnight when the demand is low, cars with longer ranges. More than in 2021. Gradually, subsidies for sales, Bu believes Norway will have this isn’t a problem. Consumers 30,000 Norwegians are in-line for electric cars will be replaced by more than one million EVs by 2025. in Norway are willing to do this. such vehicles. higher taxes on ICE vehicles. Power levels required to charge Electricity companies have even “Manufacturers have a job “The main reason why we have them may create a significant strain introduced lower prices for electricity to do and they have been slow. this success is that it’s not necessarily on the existing grid. as long as they can turn off and on I understand why they’re slow. subsidies, but we tax ICE cars.” According to research by charging depending on demand.” They have spent a lot of money on the Norwegian Water Energy At times, production exceeds ICE models and want a return on FACILITIES STRETCHED Directorate, 1.5 million fully domestic demand. “We’re investment. Electric cars also have The expansion of charging a bad impact on the after-market infrastructure has been a vital Christine Bu charging up a car because there’s not much to fix. measure in eliminating range “They are, however, thinking anxiety, says Bu. differently because they’re being “We have a country with long challenged by newcomers, such distances and many mountains, as Tesla, but more importantly by which makes charging an issue what’s going on in China.” and people, like New Zealanders, The hope is that the sheer enjoy taking long trips so we need size of the Chinese market will charging stations.” encourage the industry to improve While this could be a serious battery prices, force down prices issue for some countries, Norway is and quickly develop more models. overcoming this issue. Demand in Norway is so great “For a while, EV chargers were there are months-long waiting lists hidden behind petrol stations and for new models, such as the Kia you could hardly find them. Now Soul and Hyundai Ioniq. the charging station is out front and “We also have this new situation being promoted, and it’s becoming Advice for New Zealand in Norway where people pay more about competition. New Zealand needs to remain Kiwi consumers, business deposits for a car that’s going to “There are about five different a priority for EV manufacturers owners and politicians to be come out. About 6,300 people operators selling fast-charging as to avoid being left behind, says part of this transition, and learn have paid 2,000 euros to be in-line a service, and they keep putting Christine Bu. about it early on because of the to buy Audi’s next EV, the E-Tron out more chargers using private “To be a priority, New Zealand opportunities it creates. Quattro SUV. money. Right now, we have about needs to stick up its hand and “It took a long time to get to “Hyundai didn’t have a deposit 1,600 outlets in Norway. Out of say it is here and better than one million EVs in the world. It scheme, but an ‘interest list’. It had Australia, we have incentives and took only 18 months to get to these, 550 are Tesla super-chargers, to stop this when it reached more we’re interested in these cars. the second million. By January but we need many more.” than 20,000 people.” “The market that will always 2018, we reached three million Going forward, the plan is to be prioritised the most is China and in June four million. It’s the have many EV stations, which can Autofile’s Lucy Pink attended a business because it has tough restrictions beginning of an s-curve. breakfast in Christchurch on November 28 hold as many as 40 chargers. on ICE cars.” “It’s still a bit too slow, but the at which Christine Bu spoke during a trip to  “We have a big job to do Bu believes it’s better for EV revolution is really happening.” New Zealand

www.autofile.co.nz 19 Planning for now and the future ell, the New Year is NEW CUSTOMERS speaking favourably dealership’s performance. here and if you didn’t Make sure online about your dealership. One way to see how you kick some proactive vehicle listings You then need do in this area is to remove activityW into gear late last year provide plenty of to ensure you keep yourself from the business and in preparation for 2019, then information, and you in touch with them look at it from your customer’s there’s no time like the present convey key features of during ownership perspective. All too often, your to take action. the vehicle and your cycles so you stay daily environment may have What lies ahead in 2019 can dealership. present in their minds, aspects you won’t realise are sub- be influenced by actions you Ensure your MARK GREENFIELD and when they hear standard and they can influence take at your dealership. website is a central Motorcentral of someone looking customer experience negatively. While it’s never too late to hub that everything points to – to buy, they recommend your You can ask family and friends start, the foundations of what where you showcase more stock, dealership. to get involved and take a look could’ve been laid over the past more about your dealership, your If you don’t stay present at your business, mystery shop, few years also impacts your services and your team. through even the simplest enquire online, call on the phone results, now and in the future. Make sure you’re where all the customer relationship or test drive a car – all in an aid The days of sitting back eyeballs are going for potential management (CRM) touchpoints, to provide you with constructive waiting for customers to walk on buyers in the market when you run the risk of not being top feedback. in aren’t over yet – you just need looking for a new car that fits of mind after the first month or Utilise customer survey to ensure they’re coming in. the demographic your stock and so of ownership. and review tools, such as The difference is what you do dealership caters for. Don’t be afraid to ask for a BuyerScore, which provides to ensure you get them making Use a survey solution such referral. You may want to do this you with significant insight that decision to come into as BuyerScore to leverage through an incentive or gift for into not only purchasing your business as part of their and showcase past customer doing so. Be sure to thank your customers’ experiences, but also car-buying journey. Nine times experiences, so prospective customers if they refer someone. has a feature that helps you to out of 10 they are there to buy, customers build confidence in understand why a customer and the majority of people are your dealership. Being rated REPEAT CUSTOMERS didn’t buy from you. planning to purchase from the and having reviews could be the Again, they need to have received That being said, above all, first dealership they walk in to. difference needed to get them great service during their last please do something with the Now if that thought has coming in. After all, 80 per cent of purchase and throughout their information you receive. Make provoked you to think about buyers have purchasing decisions ownership, so they want to engage a plan to implement changes actions you took – or didn’t – last influenced by customer reviews. with your dealership next time. based on feedback. You will be year, you can’t dwell on the past Phone and online enquiry Keep in contact with them via surprised how easy it could be or change what has been. must be handled promptly, and soft touchpoints as part of your to pick up an extra few sales a However, you can ensure answer everything customers CRM practice. month by making basic changes you’re proactive in the future ask. Old-school tactics of holding Provide them with easy options staring you in the face. and take steps today to improve back information to try to get to upgrade when the time is right. Take 2019 by the horns and conversions to sales not only them on the yard generally won’t Existing customers are also great make it the year your dealership during 2019, but start laying work except maybe for a rare or sources of vehicle stock. surpasses previous sales records sound foundations for 2020, limited vehicle. Invest in them – they’re your best and lays effective foundations for 2021 and beyond. And respect your customers return on investment, hands down. future success. Let’s look at the three before they’ve even purchased. The team at Motorcentral is customer segments and some BUYER’S PERSPECTIVE excited about 2019 and driving simple tips on what you can do REFERRED CLIENTS Refining your focus and being more innovative ways that to be the best-placed dealership Past customers need to have had proactive across all buyer types enable the success of dealerships for people to visit to buy cars. good experiences to get them will positively impact on your in New Zealand.

20 www.autofile.co.nz news

Planning for now and the future British bid backed Worst figures for road he likelihood of a bidding vote shares held or controlled by war for Trade Me has eased them in favour of the offer. fatalities in decade with a second private-equity Chairman David Kirk says the he government has on a new strategy and action plan to Tfirm confirming it doesn’t intend to board “unanimously concluded” the reiterated its focus on safety drive substantial improvements.” lodge a superior proposal. offer is consistent with delivering with last year’s road toll Dylan Thomsen, of the AA, The online marketplace has maximum value to shareholders. Tcoming in at 382 – the worst since describes 2018’s road toll as “awful”, entered into an agreement for UK- “Trade Me would have a 384 in 2009. especially as it follows record low based Apax Partners to acquire 100 successful standalone future, but Julie Anne Genter, Associate numbers five years ago. per cent of its shares at $6.45 each. the certainty of the cash offer and Minister of Transport, says the figures He says the increase matches The decision is subject to material premium would be an highlight the need to substantially global trends with population shareholder, high court and Overseas attractive outcome. It merits being improve highways in New Zealand. increase seen as one factor, although Investment Office approval, and an put to shareholders in the absence of “Many deaths and serious injuries this doesn’t account for all of it. implementation agreement. a superior proposal.” on our roads are preventable,” Long-term research by the It follows US-based Hellman & The scheme implementation says Genter. “This government association shows while about half Friedman, which made an alternative agreement covers termination rights is committed to reducing them of fatalities are from extreme factors indicative offer, confirming it has no and circumstances when Trade Me through new thinking, more funding such as alcohol or speed, much intention of increasing its bid. may be required to pay Apax a $19.2 and prioritised action. It is investing of the remaining 50 per cent are Hellman & Friedman’s offer, million “break fee”. $1.4 billion over three years to mistakes by average drivers. also $6.45, was matched by Apax Details on the takeover, an improve high-risk roads. The AA would like to see roadside increasing its first bid by five cents. independent adviser’s report, reasons “On high-volume state highways, drug-testing introduced, and more This represented a 27 per cent for the directors’ recommendation New Zealanders can expect to see alcohol interlocks to stop drink- premium on Trade Me’s one-month and meeting information is expected more improvements, such as life- drivers starting their cars. volume-weighted average price to to be mailed to shareholders in saving median and side barriers, and The official holiday period saw November 20 and an implied equity March for a vote during April. The crash-preventing rumble strips. nine people killed in crashes – three value of $2.56 billion. takeover should happen in the “This year we will be consulting less than in 2017/18. All Trade Me directors intend to second quarter of 2019.

www.autofile.co.nz 21 tech report Rate of change accelerating redicting future transport to solve tomorrow’s Then there’s the demonstrations. This told me a lot of trends is difficult. One problems. near impossibility of speculation was occurring, most of major challenge is the fact The assumption in predicting complete which will never be tried, much less Pchanging technology can create all these cases is that paradigm shifts. become a real-world solution. paradigm shifts with unforeseen improvement will be Unfortunately, as There are two other things I consequences. achieved in small steps mentioned above, often see in work trying to predict For instance, in London during and the solution it forecasting through the future – the “silver bullets” and the late 1800s one of the biggest creates will be at similar statistical trending the failure to account for socio- challenges was the amount of or lower costs. Kit Wilkerson cannot predict them. economic factors. Policy adviser and analyst manure generated by transport The reason we see [email protected] The best effort I’ve seen The silver bullet is the opposite activities. In this case, a new the world of tomorrow was work the Ministry of the incremental change bias. It’s technology emerged that solved through the lens of of Transport did on the expectation that technology the issue. As we know today, the today is because it’s often the case. scenario building was on Transport will cause radical change over a solution was the automobile. We continue to use old technology Future. It didn’t, however, even try short amount of time. While this Often, the tools and methods used for many reasons, including the to predict individual technologies can happen, it’s not common and to predict the future are themselves fact everyone else does. or solutions, but painted four usually involves a technology that a cause of our inability to do so. For Many social platforms have different visions of the future empowers consumers in entirely instance, we often use statistical come and gone, and many of these based on our need to commute – new ways. analytics to find trends, which can be platforms might have been real as opposed to doing everything Socio-economic factors have extended to make predictions. improvements in functionality, the virtually – and the cost of doing so. their own independent set of effects This methodology is flawed ability to connect and share, as well The only methodology that has that are both complex and difficult because it assumes that tomorrow as privacy, but they were all doomed any success of predicting paradigm to predict. If anyone had mentioned will be like the past. The potential for because our friends didn’t use them. shifts is pure speculation but, then e-scooters to me a few years ago, I error when trending increases the We also have difficulty again, speculation is even more would’ve laughed at them. Aren’t I further into the future it’s extended. envisioning futures that stray from successful in predicting change being proven wrong now. The one thing we do know our own vested time and interests. that never occurs. The future of transport will have to about the future is the rate of This is especially the case when we I recently got back from the ITS address many challenges, including change is accelerating, which means talk about publicly owned assets. World Congress where the forefront the need for energy, environmental the potential for error in trending Public agencies tend to prefer to of transport technology was friendliness, safety and even security. will also accelerate. maintain existing solutions and showcased. My biggest takeaway The solutions will meet additional Another related hurdle is a even actively oppose innovation was the observation that there were demands for mobility or offer bias towards the perception of that might compete with thousands of papers presented alternatives to existing demand, incremental change. Most people nationalised solutions. and only a handful of actual and will have to provide increased view the changes of tomorrow as flexibility and adaptability to both An autonomous shuttle at last small ones that will improve on what year’s ITS World Congress freight and passengers. we have today. We imagine the fleet It’s likely the costs and of the future as being composed complexity of these solutions will be of vehicles with all of today’s safety outside the scope of government features, plus whatever new systems to implement directly, leading to are developed. an increase in private initiatives and We envision the transport public-private partnerships. system of tomorrow as the one of Ultimately, it will always be the today with incremental tweaks to market that will be the decider improve efficiency and think that of which solutions win out. It will by combining the tools of today in be deregulation that creates the creative ways, we can build tools possibility.

Advocate  Advise Advise  Connect • Advocate • Connect

Imported Motor Vehicle Industry Association

www.via.org.nz

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JON MACDONALD, chief executive officer of Trade Most business leaders down into parts to make Me, has opted to stay on with the company to “ensure and managers feel anxious it easy for you to process. continued good momentum in the business and a about having conversations smooth transition to a new CEO”. with one of their team to What is the situation? Macdonald announced in June of his intention to address issues such as Gather all the relevant stand down in December, but late last year he agreed consistent lateness, poor facts. Ask yourself how to continue on an interim basis. performance or conflict in long and why it has been Will Allan the workplace. happening, and how it Hello Monday JOHN JOURNEE has become an independent However, trying to avoid started. director of the Colonial Motor Company following the such discussions is the worst thing Does there need to be training? retirement of Falcon Clouston. to do. Is there a personality clash? Journee has had an executive career in retailing, We may dread such issues or are including senior roles at The Warehouse, a period unsure how to address or raise them What is required? of self-employment, chief executive officer of Noel Leeming and because we hope that they will go If you see something in your managing director of Southern Hospitality. away, which is never the case. dealership that goes against He is a director of The Warehouse and chairman of Max Fashions. His Difficult conversations may company values, culture, policies previous directorships include Ezibuy and chairman of Powershop NZ. be a common occurrence at your or procedures – such as equipment dealership – in sales, servicing, being used incorrectly or poor DAN AMMANN is now chief executive officer administration or management – behaviour – address it immediately. General Motors’ autonomous vehicles operation and they can extend to clients. Don’t let it sit and fester. Cruise Automation. Not addressing issues can New Zealand-born Ammann spearheaded the create a culture of accepting poor Tackle any anxiety acquisition of Cruise in 2016 as president of GM. performance and mediocrity, and you An aspect of the conversation Cruise co-founder Kyle Vogt is partnering Ammann to set strategic can start feeling it in your business. may make you feel anxious and direction and will lead technology development. If you want to improve culture uncomfortable. at your dealership and want a high- If you feel overwhelmed by performing team like the All Blacks, having this type of talk, one of the then mastering the art of difficult best things to do is discuss with conversations is a skill everyone must someone in your team or business have regardless of their roles, but about how you might address it. most importantly your leaders. Sharing with someone else can help Many leaders are afraid of difficult remove fear and anxiety. conversations because they might The person you share it with stuff them up. However, there’s can give you some tips or get you Specialists in nothing in employment legislation looking at the situation from a to prevent you from taking someone different view. After all, a problem pre‑shipment inspections aside and having an honest talk – shared is a problem halved. in Japan & UK obviously delivery is important and the majority of the time this is where Set the solution  Full border inspections things go south. Always think about the outcome that But if you have the relevant you want to achieve when you need  Authorised MPI inspections facts, see patterns and approach to have a difficult conversation. issues from a practical point of It’s a great idea for people to  Authorised NZTA inspections view, people you address will know go into these situations with the they’re contributing to any issues objective of trying to understand  Odometer verification being discussed. what’s behind the behaviour and Think of a situation you’re why it’s happening.  Pre-export appraisal currently facing or having difficulty Employees don’t just decide with every time it comes up, then to be difficult. There’s normally  Vehicle history reports ask yourself why you find this something behind the scenes. That’s problematic. your responsibility as a leader to You need to understand why you find out even if it is frustrating. avoid addressing things when they Remember, difficult arise. It might be a skill, knowledge conversations are hard. But get or courage, but you need to find a yourself into the right mindset to way to work through this. address them, don’t let things build JEVIC NZ One of the best ways to address up, address them as soon as possible 09 966 1779 www.jevic.co.nz a difficult conversation is to break it and always stick to the facts.

24 www.autofile.co.nz f & i focus Protecting your customers rotecta Insurance believes to Australia, for about 18 because the F&I on business managers, but also get the best possible sales years. She has worked department is a profit dealerships that don’t employ full- results from our automotive in new and used centre and needs to time business managers and have dealershipsP is to provide training dealerships, and as a make money just like sales people performing this duty. not only on insurance products, but finance broker in the other departments are She then became Protecta’s full-time how to sell responsibly and comply capacity as a business expected to. trainer and developed a one-day with the law. manager. Erin decided to course focusing on sales people. Over the past few years, we’ve She believes to be change her career With legislation changes seen many changes in legislation – a successful business Colin Marshall direction quite a few over the past few years, Protecta not only with responsible lending manager you need Direct sales & years ago, and qualified decided its dealerships would marketing manager and uninvited direct sales, but more several attributes. The first Protecta Insurance as workplace trainer have the advantage of not only recently with anti-money laundering is a desire to ensure your and assessor. Coupled product and sales education, but requirements also tightening up. customers are fully informed of all with this, she is a qualified finance also be fully informed of their legal Our national trainer, Erin products available to purchase and and mortgage broker. responsibilities. Mills, has worked with Protecta do the absolute best for your clients. She started with Protecta in 2013 Going forward with imminent dealerships for the past five-and-a- To achieve this, you need to as a business coach looking after government changes, our dealers half years coaching, encouraging ensure you know your products Nissan dealerships along with her can be assured they are working and educating business managers really well, which will give you an training responsibilities. Her duties with a totally education- and sales people who write finance air of confidence when presenting covered New Zealand nationally focused company. and insurance (F&I). We have to clients. You also need an open, with two-day business manager If you would like proven that focused training does friendly personality because training courses and by working assistance complying get results when it comes to sales. customers will buy from people alongside our consultants with one- with legislation Erin has worked in the they like. on-one training in dealerships. or increasing your automotive industry as a business After that is your own personal This became so popular that we profitability, please manager, both in New Zealand and desire to get great sales results decided Erin should focus not only get in touch. Erin Mills

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www.autofile.co.nz 25 newslooking back The month that was... January

January 28, 2005 January 13, 1997 Older cars of ‘grave concern’ Toyota opts for used imports The ageing of the New Zealand vehicle fleet was After a year of investigations and trial shipments, a “grave concern” back in 2005. Toyota New Zealand was going ahead with its plan to Perry Kerr, chief executive officer of the Motor bring in used imports for on-sale to its dealer network. Industry Association, commented that improving Just before Christmas, managing director Bob safety and environmental performance of new Field announced the company would bring in up vehicles would be diluted as long as the country to 3,000 units a year. That was 10 per cent of the kept on allowing the fleet to get older. total number of used Toyotas being imported. In 2004, the average age of New Zealand The decision came when the industry was rife with rumours about vehicles was 11.78 years, which had been climbing since 1992 the imminent demise of four major importers. when the average age was 9.93 years. These rumours, despite being largely unsubstantiated, found their However, the Motor Trade Association’s national communications way into national newspapers resulting in a slowdown of registrations manager, Andy Cuming, believed the ageing fleet was simply an as punters waited to take advantage of expected fire sales. economic reality – a reflection of the failure of real wages being unable to The increased imports move was welcomed by a majority of the keep pace with living costs. marque’s dealers, who were previously prevented from selling used- Cuming also had the view that just because a car was more than seven imported Toyotas. years old didn’t mean it would cause more injuries or pollution. Greenlane Toyota dealer principal, Tony Andrew, said it would add In addition, Japanese deregistration certificates for vehicles from Japan value to the brand’s relevance in the used-vehicle market while making were replaced with new documents known as export certificates, with a clear statement to reduce consumer suspicion. the new ones being printed in English and Japanese. David Vinsen, head of the Imported Motor Vehicle Dealers’ Association, January 19, 1998 said it indicated the export of used vehicles from Japan was being Industry restructuring heats up recognised as an important economic activity by the government there. The Christmas break saw a major move in dealer January 19, 2007 rationalisation. However, the situation was nowhere near as bad as what was being broadcast Traders fined for lack of cards by mainstream media. Six motor-vehicles dealers were fined more than Claims that up to a dozen traders had gone $9,000 in total for failing to display supplier into receivership in 1997 appeared to be without information notice (SIN) cards. foundation. The traders, which were selling from car yards Imported Motor Vehicle Dealers’ Association in Hamilton, Rotorua and Auckland, were fined chairman, John Nicholls, said he hadn’t seen large numbers of traders up to $300 for each vehicle that didn’t carry a SIN. going into receivership or even voluntary liquidation. Another Rotorua trader – Growth Investments Ltd – However, there was a high-profile demise during this time with pleaded guilty and was due in court in April for sentencing. Giltrap City Toyota taking over Greenlane Toyota in Auckland. The dealers breached section 28 of the Fair Trading Act by failing to The move was significant for the industry as it followed the takeover attach the cards to used cars. The activity was uncovered by Commerce by John Andrew Ford of two North Shore Ford dealerships, which saw Commission investigators on visits to car yards between November 2005 one of them close. and January 2006. Both Giltrap City Toyota and John Andrew Ford were already the Deborah Battell, the commission’s director of fair trading, said: largest dealerships for their respective franchises in the country. “Buyers are entitled to accurate information about what they’re buying. The move pitted the strength of the Giltrap Group against that of The requirement for traders to display the SIN card came into effect in John Andrew Ford’s Stuart Bowater, who announced his intention to December 2003. Three years is more than enough time for motor-vehicle open a satellite dealership at the end of the Greenlane Boulevard of Cars traders to understand their responsibilities.” later that year.

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26 www.autofile.co.nz news In A-Class of its own

ercedes-Benz took out the top honour at the inaugural AA MDriven New Zealand Car of the Year Awards. The German marque’s A-Class swept aside nine other finalists to scoop the title at a glittering ceremony at Shed 10 on Queen’s Wharf in Auckland, attended by Stephen Glading and Marc Ebolo about 200 people. “We are honoured to be presented with this important and prestigious award,” said Ben Giffin, Ben Giffin, of Mercedes-Benz NZ, flanked by Stella Stocks, of the AA, executive general manager of and Greg Cassidy, general manager of digital ventures with Driven Mercedes-Benz NZ. “This accolade confirms the These are the result of hard work This year’s winners new A-Class is not only the by everyone in bringing these cars Micro/light car: Suzuki Swift Sport technology leader in its segment, to New Zealand.” Presented to Simon Terry by Donna but possibly across the market. Among the people Stocks Gaskin, of ANZ Most people buying it are new to thanked were Brian Gibbons, Small/compact car: David Hodge and Euan Philpot the brand.” chief executive of the AA, without Mercedes-Benz A-Class Giffin also praised the awards whose “support we couldn’t host Presented to Ben Giffin by Sakon Bandasak, of BNT for their “transparency”, which this event”, and NZME’s Driven has been welcomed across the team, “which made the decision to Medium/large car: Holden Commodore industry. partner for the awards so easy”. Presented to Marc Ebolo by Stephen Judges, consisting of AA staff Liz Dobson, chief judge and Glading, of Protecta Insurance and motoring writers, chose the Driven’s editor-at-large, said two Luxury Car: BMW 5-Series A-Class after tests on finalists at days of judging made the awards Presented to Karol Abrasowicz-Madej by Pukekohe Park Raceway. stand out with contenders driven Craig Polley, of ICG Shortlisted vehicles included over an extensive route and on- Small SUV: Volvo XC40 three Hyundais – the Santa Fe, track exercises. Presented to Coby Duggan by Alan Coby Duggan and Alan Leigh Leigh, of Experieco Kona and i30N. The others were “Our route included everyday the Subaru Forester, Volvo XC40, situations vehicles encounter – Medium SUV: Subaru Forester Presented to Wallis Dumper by Trevor Kia Stinger, Holden Commodore, school zones, 50-100kph, urban Sefont, of Fleetline Suzuki Swift Sport and Mazda CX-8. driving, gravel road and the Large SUV: Mazda CX8 Stella Stocks, general manager ability to use cruise control,” she Presented to David Hodge by Euan of motoring services at the explained. Philpot, of JEVIC NZ AA, said the awards were the “Not only did we encounter the Luxury SUV: Jaguar F-Pace culmination of a comprehensive moose test at 50kph and 70kph, we Presented to Ben Montgomery by Peter voting process. also tested vehicles’ abilities on the Ward, of Blue Star “The AA Driven partnership Pukekohe track at highway speeds. Sports car: Mazda MX-5 means more New Zealanders “The ability to do back-to- Presented to David Hodge by Russell Soyoung Jung and Andrew Clearwater Miller, of Castrol Professional than ever will be able to access back testing and real-time voting information they need about made this comprehensive and Utility: Volkswagen Amarok Presented to Roxane Merveille by Craig the best cars on the market with transparent testing – something Burrows, of Supercity Towing definitive answers on safety and the industry has asked for.” EV/plug-in hybrid: Hyundai Kona value for money,” she added. “Two More than 53,000 Kiwis voted Presented to Chris Blair by Bob Boniface, days of testing provided a robust in the people’s choice award of the MTA method of measuring excellence. and the safest vehicle award was People’s choice: Suzuki Swift Sport “This year, the finalists and determined by the highest ANCAP Presented to Simon Terry by Tony Verdon, of Driven winners raised the bar for the rating. Visit www.autofile.co.nz Safest car: Toyota Corolla industry with enhanced safety, for more photos from the awards Presented to Soyoung Jung by Andrew Karol Abrasowicz-Madej technology and design features. night on December 12. Clearwater, of MITO www.autofile.co.nz 27 motorsport Tough job staying at the top he pressure is on at New Australia and the US, although there With drives priced at about Zealand’s premier single- are as yet no European entries and $220,000 and only 14 cars on the seater category ahead of just one New Zealander. grid, the championship suffered Tits five-week and 15-race season Rookies dominate, with a significant shortfall this year of in 2019. only Baltimore-based American more than $1 million. Heading into Christmas week Cameron Das returning for a To remain relevant to the and the end of the business year, the second run at the championship. European driver base, which has 2019 Castrol Toyota Racing Series By the end of December, traditionally added zest to the (TRS) had just 11 entries, down from unconfirmed rumours of entries competition, the TRS must also 14 for the 2018 championship. covered UK hotshot Dan Ticktum, So far, the TRS grid for this season is quieter change its fleet to a new chassis At the same time last year, all expatriate Kiwi Hunter McElrea, than organisers would like with the FIA-mandated “halo” but two drivers, both Kiwis, had European F3 winner Mick sharpness as he prepares to step driver safety structure and a fresh confirmed their intentions to race. Schumacher and two Prema out of the saloon-coupe based aerodynamics package. A full grid is 20 cars and organisers drivers from the Italian team’s 2019 Deutsche Tourenwagen Masters That means 2019 will likely be say they remain confident of F3 squad. Sources say Prema is and back into single-seaters – this the swansong for the FT50 Tatuus- delivering a grid of 18 cars. considering the prospect as late as time with Red Bull backing. Toyota cars just four years into their In previous seasons, the full the last week of the year. This would take the competition lives. The previous FT40 20-strong grid had been announced Then there’s been talk about championship to 15 entrants. If cars completed a full 10 years and by the same point, leaving organisers multi-season TRS racer Lucas Auer, it’s unable to front at least 16 cars, the best of them are now being run free to focus on final vehicle builds at who is the nephew of F1 great the TRS faces its second troubled as drive-school cars in Australia. the operation’s Hampton Downs base. Gerhard Berger. year with low revenues and high The first round of the 2019 So far, the championship is He’s believed to be on his way costs marring its recent form as an championship was at Highlands attracting strong interest from to retune his skills to single-seater incubator of racing talent. Park, Cromwell, on January 12. Hartley going back to the future

s New Zealand’s bid for a Brendon Hartley will make a return to Porsche communication to engineers, and round of the FIA Formula E after being dropped by Toro Rosso F1 bid him farewell more graciously Championship awaits than Toro Rosso. Agovernment endorsement at local Hartley now steps back to the and national level, race driver and German team that brought him his World Endurance Championship finest racing results of all and he’s (WEC) winner Brendon Hartley has looking forward to 2019 as the team been reconfirmed as a Porsche prepares its Formula E challenge. factory driver and will join the He is highly regarded by marque’s maiden foray into Formula E. improved last year, it quickly future mounted, Hartley hit back with Porsche having taken the marque Porsche was the team that became apparent Toro Rosso a string of improving performances, to WEC titles in 2015 and 2017, powered Palmerston North-born was never going to allow him but these were masked by car and and winning the 2017 24 Hours of Hartley and fellow Kiwi Earl Bamber to outshine his team-mate. By component failures. Le Mans race. to the WEC title, but freed the mid-season he was being used as By season’s end, the relationship Hartley is also a high-profile former to pick up a Formula One a test donkey as the team trialled had completely disintegrated, ambassador for the domestic drive in late 2017. They retained suspension components in actual although engine manufacturer Toyota Racing Series having won him as factory driver in-absentia. races, which is a risky practice. Honda valued Hartley’s keen is first race, and winning Formula Although Hartley’s form As media speculation about his analytical skills and open Renault 2.0 in Europe in 2007.

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www.jevic.co.nz vehicle inSpectionS ph 09 966 1779

28 www.autofile.co.nz National platform for trade-ins

ealer Trade Network (DTN) – a tool to help Special offer facilitate wholesale trades Traders can take advantage Dbetween dealers – will be launched of a special sign-up rate this month by Autotrader in for a limited time while we partnership with 4 Media. continue to get everything DTN will revolutionise vehicle ready for the launch of Dealer wholesale trading by giving dealers Trade Network. Any dealer who signs up national awareness of, and access for six months before the to, thousands of used cars traded in end of January 2019 will get every month. their first three months free Thanks to the DTN tool, dealers and pay only $49.99 plus GST will be able to optimise their per month for the remaining used car stock, move on vehicles three months. In effect, that’s paying $149.97 plus GST for superfluous to their needs and six months’ access. improve trade-in yield. Call us on 0800-800-146 or talk to your Autotrader GET BEST PRICE account manager and get set The software combines global best up with DTN. practice with Autotrader’s and 4 Media’s industry expertise to deliver a tool tailored to suit New Zealand’s handy – be that a mobile phone, we expect to roll out additional suggestions and/or changes you unique used-vehicle market. tablet or desktop. functionality as the year goes on. think we should add to the product DTN provides an easy and Dealers looking for vehicles can We would love to get feedback to make it even better. Just give us seamless way for dealers to specify the make and model they’re on DTN, and hear about any a call on 0800-800-146. wholesale unwanted trade-ins interested in, and will be notified and aged stock while realising whenever new vehicles matching the best possible price, and at the their criteria become available. same time helping dealers find They can then make an offer. Once NEED YOUR CAR OR TRUCK MOVED? new stock. an offer is received the seller can Transport Logistics – Specialists in Inter-Island Transportation Using DTN to trade a vehicle accept it and complete the deal. It is as simple as entering a licence really is that easy. plate, the odometer reading and taking a few photos. Your vehicle CONNECT EASILY is then added to the network with DTN is a technology solution other dealers looking to purchase that allows sellers and buyers vehicles being notified. to connect easily. Buyers can create criteria to suit their stock FULLY RESPONSIVE requirements and receive alerts as Due to the fully responsive nature soon as stock is listed they may be of DTN, you can list a vehicle for interested in. trade from whatever device is Sellers can share their trades immediately with dealers across the country, with the possibility that a SHIP. RAIL. ROAD. trade-in purchase and sale can be TAILORED SOLUTIONS TO BRING YOU THE BEST PRICE made while the PORT-TO-PORT – DOOR-TO-DOOR customer is still on Please contact us: the yard to reduce Auckland office the risk in trading Tina Boatwright 029 525 8950 in a vehicle you email: [email protected] wouldn’t normally Christchurch office Louise O’connell 03 374 5716 stock. email: [email protected] DTN V1.0 launches this month and

www.autofile.co.nz 29 disputes

The case: The buyer wanted to Buyer exceeds ‘reasonable time’ rule for reject his vehicle under the Consumer Guarantees Act (CGA) because he had been advised the Ford Mondeo’s refund but secures transmission costs transmission needed replacing because it was irreparable. Background if Turners’ advice was correct – Hunt Turners he was rejecting the The decision: The adjudicator The automatic transmission on would be left without a remedy. vehicle on May 4. ruled the car failed the legislation’s Stephen Hunt’s 2013 Ford Mondeo On closer examination, Turners’ After considering the guarantee of acceptable quality, but began shuddering while shifting advice was wrong. Part two of the possibility of supplying a the buyer had left it too late to reject between gears and from standstill. CGA provides for consumers’ right replacement vehicle, Butler it. Instead, Turners Group NZ Ltd was It hunted for correct gears of redress against suppliers in contacted Hunt 12 days later to ordered to pay costs for the part to be replaced. during acceleration and engine respect of goods. A “supplier” is “a confirm Eclipx was unprepared to speed fluctuated. A transmission person [other than an auctioneer] offer any remedy. At: The Motor Vehicle Disputes warning light illuminated. The who, in-trade, is acting as an agent Hunt collected his car on May 25 Tribunal, Christchurch. car went into permanent limp for another whether or not that and its condition had deteriorated. mode, couldn’t be driven and the other is supplying in-trade”. The transmission warning light months and 9,000km after purchase, transmission needed replacing. Turners couldn’t rely on the was permanently on, it clunked when Hunt first observed the The Turners Group refused to auctioneers’ exemption. It was in- engaging drive, wouldn’t shift gears shuddering, the adjudicator wouldn’t assist, so Hunt rejected the vehicle. trade and supplied the car to Hunt by and could only be driven a short have found there was a breach of the transferring ownership as an agent for distance in limp mode. CGA’s guarantee of acceptable quality. The case Eclipx. Turners was the supplier and Turners and Eclipx criticised However, issues emerged There was confusion about who sold shouldn’t have said it wasn’t. Hunt’s lack of action after Avon about 10 days post-purchase. Even the vehicle. The invoice of September Before selling the car, Turners City Ford reported in September with the reasonably high mileage 2017 stated: “Turners enters into this prepared its standard vehicle- 2017 the transmission was harsh of 183,947km when supplied, a agreement as agent for the owner”. condition guide, which recorded and slow to engage. They said reasonable buyer of a four-year- Turners didn’t initially disclose a “pass” for the Mondeo’s Hunt should have serviced it. old $7,000 car would expect its the owner’s identity until the transmission, and no problems Eclipx produced the service transmission to last longer before tribunal asked. It was Eclipx Fleet were detected on Hunt’s pre- history, which showed the car’s having “near end of life” problems, Holding (NZ) Ltd, but Hunt was purchase assessment. transmission was serviced on so it failed the guarantee of only told it was “a lease company”. Ten days after buying the car on March 27, 2015, at 64,848km and acceptable quality. Hunt complained to Turners on September 19, 2017, it was serviced on August 9, 2016, at 135,045km. Hunt sought a refund of the April 12, 2018, which initially replied by Avon City Ford. It reported the The tribunal’s assessor said purchase price and mechanical the transaction would likely be transmission was harsh and slow to service intervals on automatic inspection, and interest costs in reversed and provided a loan vehicle engage. Hunt was told to “keep an Mondeos with were 60,000km, buying a temporary replacement with the Mondeo left for assessment. eye on it”. At this stage, the vehicle which meant the car was next due vehicle in May 2018. Two days later, Hunt was advised remained driveable. its next service at 195,045km. The adjudicator agreed with Eclipx refused to consider any claim On April 9, 2018, the vehicle Avon City Ford’s invoice of Turners that if he wanted to reject and he needed to phone Christchurch started shuddering during shifts September 2017 recorded the the vehicle, he should have notified branch manager, Blair Butler. and taking off from standstill, and odometer on 184,651km, so it earlier so he lost his right of On May 1, Butler told Hunt even making noises. The “transmission the transmission wasn’t due for rejection under section 20. though the vehicle wasn’t bought limited function” warning light another service by then. Hunt was, however, allowed to at auction, Turners wasn’t the came on, but went out when the recover $4,000 for a second-hand supplier under the CGA so couldn’t engine was switched off. The finding transmission, labour of $1,058 offer any remedy. He added Eclipx Avon City Ford advised Hunt the The buyer was advised the and $140 in overdraft interest was responsible and refused to transmission needed replacing. He transmission needed replacing. payments for buying a temporary assess the car fearing it would be complained to Turners, which told The assessor agreed and added replacement vehicle. held accountable. him as neither Eclipx nor Turners these Mondeos were known to Eclipx was joined as a party to accepted liability, he needed to experience such problems. Order guard against the possibility that – make a tribunal claim. He notified If the failure had emerged seven Turners had to pay Hunt $5,198.

MEDIATION SERVICE FACILITATING RESOLUTION

30 www.autofile.co.nz disputes

The case: The purchaser’s vehicle Girlfriend ‘concoction’ failed to disguise had a significant fault with its engine that breached the acceptable quality guarantee as defined in the Consumer ‘private’ sale was made by car dealer Guarantees Act (CGA).

The tribunal ruled Background listing stated “finance available”. which allowed combustion gases The decision: the problem amounted to a failure Samuel Langton purchased a 2007 The adjudicator accepted to enter the cooling system and of substantial character, so under the Mazda RX-8 for $7,000 from Austin Langton’s submission because water to enter the engine. This in legislation the buyer was entitled to MC Ltd on May 5, 2018. He had these factors when taken together turn caused the car to overheat, reject the Mazda RX-8 and secure a seen it advertised on Trade Me showed the vehicle was unlikely to become hard to start and lose full refund of the purchase price. The and was led to believe the car was have been sold privately. performance. dealer was reported to the Commerce Commission for its actions. being sold by a private individual. He also agreed with Langton’s He agreed the engine was likely He quickly discovered it had submission that Austin’s story to require significant overhaul, At: The Motor Vehicle Disputes significant damage to its rotary the vehicle had previously been considered RoTech’s estimate to Tribunal, Auckland. engine and the supplier was a owned by his girlfriend was a be reasonable and given the short registered motor-vehicle trader. concoction designed to disguise period of Langton’s ownership that Austin MC Ltd, despite receiving this transaction as a private sale. the damage would have existed at pre-hearing settlement discussions a notice notifying it of the time, Given the previous owner the time of purchase. or – after receiving notice of the date and location of the hearing, owned the vehicle for a little more hearing – fails to attend without failed to attend. than two weeks before it was sold The ruling reasonable cause. to Langton, it was considered The adjudicator was satisfied The adjudicator was satisfied The case highly unlikely the car was owned the car had a significant engine Austin MC Ltd, after receiving the Langton said when he bought or used by the girlfriend before fault, which meant it wasn’t of hearing’s notice, failed to attend the vehicle he was led to believe being on-sold. acceptable quality for the purposes without reasonable cause. Indeed, it was being sold by Aaron Austin Shortly after purchasing the of section six of the CGA. the trader provided no excuse for in a personal capacity. Austin said vehicle, Langton noticed the oil This was because a reasonable non-attendance. his girlfriend no longer wanted reservoir was low. He topped it up, consumer wouldn’t expect a This meant Langton was it, but Langton believed the car but found a leak. vehicle of this price, age and entitled to recover $50, which was was supplied by Austin MC Ltd, a He initially thought this was mileage to have a pre-existing the filing fee for his application, registered trader. a power-steering fluid leak, but damage costing more than $7,000 while Austin MC Ltd was ordered to This was an important point Western Auto Services in New to repair. pay $650 – the reasonable costs of because protections available Plymouth advised the car appeared Section 21of the act also the tribunal hearing. under the CGA apply only when a to have significant engine applied to this case in that the In addition, the adjudicator consumer purchases goods from problems and he was referred problem was of substantial referred this matter to the a dealer. to RoTech Services, which had character because a reasonable Commerce Commission because Langton claimed Austin was expertise with rotary engines. consumer wouldn’t have bought it was the agency responsible for the director and sales manager It found the engine was likely this car knowing the nature and enforcing the Fair Trading Act. This of Austin MC Ltd, and the phone to be significantly damaged, extent of the pre-existing fault. was in relation to Austin MC Ltd’s number used by Austin during his caused by corrosion on its end Under section 18 of the conduct in attempting to disguise dealings with him was the same plates as a result of a lack of anti- CGA, Langton was entitled to the transaction as a private sale as displayed on advertising for freeze in the cooling system. It reject the vehicle because the might well have raised issues under Austin MC Ltd. considered a significant overhaul fault amounted to a failure of a that legislation. He added the vehicle had was needed at an estimated cost substantial character and, under been purchased from Buy Right of $7,059.36. section 23 he was entitled to Orders Cars about two weeks before it The tribunal’s assessor advised recover the purchase price. Langton’s application to reject was sold to Langton, suggesting Langton’s evidence and the As stated in the Motor Vehicle the vehicle was upheld and the person who bought the car assessment showed it was likely Sales Act, the tribunal can award Austin MC Ltd had to pay him from Buy Right Cars purchased the engine had suffered galvanic costs against a party when that $7,050. The dealer also had to pay it to on-sell it, and the Trade Me corrosion to the rear housing, party either fails to participate in costs of $650.

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

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

A Palmerston North Masterton Wellington Nelson y Total new cars Blenheim Greymouth Westport Christchurch Timaru Total imported used cars Oamaru Dunedin Invercargill Whangarei Auckland 7,681 Hamilton Thames Tauranga Rotorua Gisborne 11,061 Napier New Plymouth Wanganui Palmerston North 2017: 8,151  5.8% D Masterton Wellington Nelson Blenheim 2017: 14,102  21.6% YOUR FIRST CHOICE IN SHIPPING Greymouthe Whangarei Auckland Hamilton Thames8 ce 1 m ber 20

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NEW: 3,823 2017: 3,711 3.0% NEW: 229 2017: 245 6.5%  MPI inspections  Odometer verifi cation USED: 5,157 2017: 7,037 26.7% USED: 432 2017: 557 22.4%  Insurance  Delivery nationwide Hamilton Rotorua NEW: 343 2017: 359 4.5% NEW: 105 2017: 103 1.9% USED: 719 2017: 846 15.0% USED: 167 2017: 243 31.3%

New Plymouth Gisborne

NEW: 67 2017: 113 40.7% NEW: 20 2017: 26 23.1% USED: 175 2017: 170 2.9% USED: 60 2017: 61 1.6%

Wanganui Napier

NEW: 86 2017: 62 38.7% NEW: 171 2017: 157 8.9% USED: 116 2017: 88 31.8% USED: 311 2017: 293 6.1%

Palmerston North Masterton

NEW: 225 2017: 197 14.2% NEW: 60 2017: 71 15.5% USED: 319 2017: 327 2.4% USED: 79 2017: 73 8.2%

Nelson Wellington

NEW: 72 2017: 85 15.3% NEW: 475 2017: 561 15.3% USED: 253 2017: 336 24.7% USED: 818 2017: 1,007 18.8%

Westport Blenheim

NEW: 0 2017: 1 100.0% NEW: 46 2017: 68 32.4% USED: 6 2017: 3 100.0% USED: 52 2017: 70 25.7%

Greymouth Christchurch

NEW: 5 2017: 10 50.0% NEW: 1,444 2017: 1,752 17.6% USED: 33 2017: 34 2.9% USED: 1,444 2017: 1,702 15.2% LATEST SCHEDULE Timaru NEW: 34 2017: 38 10.5% USED: 72 2017: 115 37.4% Lake Taupo Grand Dolphin Carrera Lake Taupo Port Calls v 1901 v 1902 v 1903 v 1904 Oamaru NEW: 4 2017: 4  0.0% Moji – 15 Jan – 13 Feb USED: 15 2017: 20 25.0% Osaka 1 Jan 16 Jan 1 Feb 14 Feb Dunedin NEW: 129 2017: 224 42.4%

JAPAN Nagoya 3 Jan 17 Jan 2 Feb 16 Feb USED: 372 2017: 442 15.8% Yokohama 4 Jan 18 Jan 3 Feb 17 Feb Invercargill NEW: 108 2017: 107 0.9% Auckland 20 Jan 5 Feb 19 Feb 7 Mar USED: 148 2017: 197 24.9% Wellington 27 Jan 9 Feb 26 Feb 12 Mar Lyttelton 2 Feb 8 Feb 2 Feb 13 Mar Your Vehicle FINANCE TO SHIFT Y OUR Import Finance

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Imported Passenger Vehicle Sales by Make - December 2018 Imported Passenger Vehicle Sales by Model - December 2018

Dec ’18 2018 YEAR 2018 Dec ’18 2018 YEAR 2018 Make Dec ’18 Dec ’17 +/- % Make Model Dec ’18 Dec ’17 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Toyota 2,419 3,617 -33.1 21.9% 33,693 22.8% Mazda Axela 584 592 -1.4 5.3% 7,411 5.0% Nissan 2,239 2,775 -19.3 20.2% 28,760 19.5% Suzuki Swift 500 567 -11.8 4.5% 6,727 4.6% Mazda 1,846 2,289 -19.4 16.7% 24,307 16.5% Nissan Tiida 500 615 -18.7 4.5% 6,600 4.5% Honda 1,181 1,410 -16.2 10.7% 15,208 10.3% Honda Fit 487 565 -13.8 4.4% 5,876 4.0% Suzuki 579 651 -11.1 5.2% 7,943 5.4% Mazda Demio 479 637 -24.8 4.3% 5,925 4.0% Subaru 563 729 -22.8 5.1% 8,243 5.6% Toyota Prius 315 314 0.3 2.8% 4,024 2.7% Mitsubishi 520 477 9.0 4.7% 5,316 3.6% Mitsubishi Outlander 296 284 4.2 2.7% 2,993 2.0% Bmw 408 566 -27.9 3.7% 5,967 4.0% Toyota Vitz 279 256 9.0 2.5% 3,093 2.1% Volkswagen 334 361 -7.5 3.0% 4,581 3.1% Toyota Wish 276 321 -14.0 2.5% 3,429 2.3% Audi 222 244 -9.0 2.0% 2,939 2.0% Nissan Leaf 260 198 31.3 2.4% 3,351 2.3% Mercedes-Benz 153 232 -34.1 1.4% 2,505 1.7% Mazda Premacy 247 207 19.3 2.2% 2,809 1.9% Lexus 89 69 29.0 0.8% 1,126 0.8% Subaru Legacy 224 365 -38.6 2.0% 3,811 2.6% Ford 68 109 -37.6 0.6% 1,068 0.7% Nissan Dualis 221 194 13.9 2.0% 2,324 1.6% Volvo 65 69 -5.8 0.6% 778 0.5% Nissan Note 213 221 -3.6 1.9% 2,408 1.6% Jaguar 46 47 -2.1 0.4% 543 0.4% Mazda Atenza 212 304 -30.3 1.9% 3,044 2.1% Chevrolet 41 40 2.5 0.4% 556 0.4% Subaru Impreza 191 156 22.4 1.7% 2,320 1.6% Land Rover 38 43 -11.6 0.3% 457 0.3% Toyota Aqua 174 37 370.3 1.6% 1,231 0.8% Hyundai 29 43 -32.6 0.3% 295 0.2% Nissan X-Trail 157 172 -8.7 1.4% 1,654 1.1% Holden 27 36 -25.0 0.2% 424 0.3% Honda Stream 155 162 -4.3 1.4% 1,883 1.3% Jeep 21 20 5.0 0.2% 334 0.2% Toyota Auris 153 155 -1.3 1.4% 1,884 1.3% Chrysler 20 17 17.6 0.2% 238 0.2% Toyota Corolla 130 211 -38.4 1.2% 1,977 1.3% Mini 18 36 -50.0 0.2% 377 0.3% Nissan Serena 128 78 64.1 1.2% 922 0.6% Peugeot 15 17 -11.8 0.1% 178 0.1% Toyota Blade 127 156 -18.6 1.1% 1,890 1.3% Dodge 14 18 -22.2 0.1% 333 0.2% Nissan Skyline 113 126 -10.3 1.0% 1,696 1.1% Porsche 10 29 -65.5 0.1% 248 0.2% Honda Odyssey 93 163 -42.9 0.8% 1,403 1.0% Daihatsu 7 11 -36.4 0.1% 97 0.1% Nissan Bluebird 91 116 -21.6 0.8% 1,345 0.9% Renault 7 35 -80.0 0.1% 109 0.1% Mazda Verisa 90 104 -13.5 0.8% 1,337 0.9% Cadillac 5 5 0.0 0.0% 60 0.0% Toyota Markx 86 266 -67.7 0.8% 2,042 1.4% Fiat 5 5 0.0 0.0% 41 0.0% Honda Accord 82 92 -10.9 0.7% 1,031 0.7% Infiniti 5 2 150.0 0.0% 21 0.0% Nissan March 81 126 -35.7 0.7% 1,137 0.8% Pontiac 5 3 66.7 0.0% 58 0.0% Nissan Juke 77 67 14.9 0.7% 819 0.6% Alfa Romeo 4 10 -60.0 0.0% 45 0.0% Honda Crv 76 136 -44.1 0.7% 1,262 0.9% Bentley 4 2 100.0 0.0% 39 0.0% Nissan Fuga 75 73 2.7 0.7% 853 0.6% Buick 4 5 -20.0 0.0% 27 0.0% Mitsubishi Galant 73 42 73.8 0.7% 692 0.5% Citroen 4 7 -42.9 0.0% 56 0.0% Toyota Ractis 72 123 -41.5 0.7% 1,177 0.8% Others 46 73 -37.0 0.4% 667 0.5% Others 3,744 5,901 -36.6 33.8% 55,257 37.4% Total 11,061 14,102 -21.6 100.0% 147,637 100.0% Total 11,061 14,102 -21.6 100.0% 147,637 100.0%

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34 www.autofile.co.nz autoportalauctions.com Used car import sales fall irst-time registrations of and demand for them has put a the vehicle fits their lifestyles and not doing the groundwork used imported passenger noticeable strain on pricing in and what their intentions and beforehand”. vehicles tumbled by 10.9 Japan.” purposes are. He adds: “We need to ensure Fper cent last year. While there has been some talk “There are too many dealers sales people are well-educated There were 147,637 units sold about Australia “gobbling up a lot not doing a good job of the about what they’re selling because in 2018, which was 18,017 less of our used EV import market”, consultation process. Often the next round of customers will than 2017’s total of 165,654. Boot stresses you can’t have an customers quickly find out the have different expectations than Toyota was the number-one electric car across the Tasman and EV they’ve bought just doesn’t early adopters. marque for used imported cars, argue you’re driving it for green suit their needs or doesn’t meet “They may not have done as with 33,693 units being sold in reasons “because most of the expectations due to a simple much research as early adopters 2018 for a market share of 22.8 country’s power is coal-fired and lack of education on behalf of and will be relying on what sales per cent. there’s little hydro-power”. traders who may not know what people are telling them. If the Nissan and Mazda were second “The Australian Capital Territory limitations are regarding charging information is wrong, then it only and third respectively with 28,760 is getting into solar power, but times, for example. takes one bad experience to ebb and 24,307 registrations, and 19.5 there’s not a great supply of “Getting the car back on the the flow of EV uptake a bit. and 16.5 per cent market shares. electricity from renewable energy. road in the time the owner is “If someone has a bad Mazda’s Axela topped 2018’s You can’t buy an EV in Australia expecting and its actual range are experience, then they tell their models ladder with 7,411 sales for and argue you’re doing it to be important. You just can’t go on the friends their electric car is terrible a market share of five per cent. The environmental.” range quoted on the internet, so because they can’t get to work Suzuki Swift’s share was 4.6 per High levels of customer service there’s a lot to learn to do it well.” and back every day, for example. cent thanks to 6,727 sales. Nissan’s and product knowledge are essential Boot says some car dealers, But there’s nothing wrong with Tiida was third with 6,600 units when selling EVs, says Boot. such as Drive EVs Ltd, GVI and the EV, it’s just the buyer hasn’t and 4.5 per cent. “You just can’t go and hand Coventry Cars, do a good job in got the right one for his or her The Nissan Leaf continued a buyer the keys and say, ‘all the the EV space as electric becomes lifestyle.” its sales growth with 3,351 best’. There needs to be good more mainstream. However, other Owen Gibbs, salesman at Royale registrations last year, an increase conversations about purchasers’ traders may think they’re missing Cars in Hamilton, says October was of 31.3 per cent on 2017. expectations as far as range is a slice of the market and are “just slow for about three weeks, but Dave Boot, the owner of EV City concerned, and making sure getting into it for the money – otherwise the business had a good in Christchurch, believes this year year and wasn’t impacted by stink will be similar to 2018. bugs at the start of 2018. Used Imported Passenger Registrations - 2015-2018 “There will be a point when “Even during that crisis, we stock of the 30kW Nissan Leaf is 15,500 were still selling about 80 to 90 almost dried up and there’s not 15,000 cars a month,” he adds. “As soon much more coming out of Japan,” 14,500 as vehicles came in, they were he says. 14,000 sold. We were back up to speed “The 40kW Leaf is still too 13,500 in November and have been very expensive, so there may be a point 13,000 busy since.” for a year where there’s no real 12,500 Gibbs says customers want 12,000 sweet-priced EV as 30kW supply small hatchbacks because they are 11,500 almost extinguishes. But once that cheaper to run. “People do want to 11,000 40kW model gets cheaper, we will trade in their bigger cars for one.” 10,500 have a ripper future with EVs in 10,000 2015 As for 2019, “next year should 2016 New Zealand. 9,500 2017 be good for us as long as we work 2018 “There’s also a push for a law 9,000 to improve our sales, do things change in Australia to allow the Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec differently to keep ahead of the importation of second-hand Leafs game and be industry leaders”. A wide range of quality vehicles All inclusive gst invoice in $nz AvAilAble autoportalauctions.com CREW with PASSION NZ office - contact Tada: 09-571-2063 or 0800-428-2728

www.autofile.co.nz 35 www.mmnz.biz Massive drop in used imports here was a substantial tailed off again during quarters comes with other problems. “Most imports from Australia decrease in used cars three and four of last year by 23.3 Thompson says with used are damaged. Those cars may have crossing the border in and 23.9 per cent respectively. vehicles from Japan needing heat hail damage that needs to be fixed, 2018T – 142,773 units compared to During 2018, 134,510 used cars treatment before being loaded, so they come in flagged. That’s a 171,543 in 2017 represented a fall came in from Japan. Australia’s issues with deliveries can arise. tough issue for buyers. of 16.8 per cent. total was 4,183 and Singapore took “By the time they get to “It’s all unknown territory for The biggest drop in used third place on 1,531. showrooms, dealers may have too dealers right now and I have no idea passenger vehicle imports came Jack Thompson, owner of RT many cars,” he adds. “Business is how the next few months will go.” in last year’s first quarter when Motor Company in Christchurch, up and down because vehicles Meanwhile, 117,947 new cars the stink-bug crisis brought the is researching the viability of all arrive at once. That’s probably crossed the border last year, which industry to a virtual standstill. importing used cars from Australia, why dealers are tapering back on was an increase of 2,928 units – or The numbers plummeted from the UK and Singapore. buying – they have so much stock, 2.6 per cent – compared to 2017. 43,958 in the first three months of At the moment, he imports from they’re probably tapped out. The total for new light 2017 to 28,937 in the same period Japan and buys second-hand vehicles “A lot of traders are looking at commercials of 36,859 resulted of 2018, or by 34.2 per cent. from franchises in the city, but is Singapore at the moment because in a year-on-year drop of two They jumped from 45,131 to looking at other markets because of the dollar is right. A lot of dealers per cent, while 6,759 used light 50,863 – an increase of 12.7 per supply-chain issues during the high- have bought from the UK, but the commercials represented a cent – in the second quarter, but risk stink-bug season – although that exchange rate is tough. decrease of 9.5 per cent.

Used imported passenger vehicle arrivals

20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 2 017 2018 10,000 2015 9,000 2016 2014 8,000 7,000 6,000

4,000 2013 JAN FEB MAR APR MAY JUN JUL Aug Sept Oct Nov Dec

Used Imported Passenger Vehicles By Country Of Export

Country of 2018 2017 2016 Export December JAN ’18 Feb ’18 Mar ’18 Apr ’18 May ’18 Jun ’18 JuL ’18 Aug ’18 SEP ’18 Oct ’18 Nov ’18 Dec ’18 Markt Share 2018 Total TOTAL % Share TOTAL % Share Australia 435 360 375 335 384 335 321 335 294 357 320 332 2.7% 4,183 5,540 3.2% 5,151 3.4% Great Britain 123 63 94 82 77 70 73 72 90 82 109 91 0.7% 1,026 2,173 1.3% 1,537 1.0% Japan 9,681 7,014 10,020 18,775 14,748 15,339 10,380 9,678 8,588 7,917 10,664 11,706 94.0% 134,510 160,822 93.8% 143,080 93.7% Singapore 132 111 95 124 128 99 122 122 142 133 118 205 1.6% 1,531 1,202 0.7% 1,231 0.8% Usa 80 102 99 104 97 86 104 57 104 123 67 85 0.7% 1,108 1,419 0.8% 1,275 0.8% Other countries 28 36 89 18 30 32 28 18 27 57 23 29 0.2% 415 387 0.2% 438 0.3% Total 10,479 7,686 10,772 19,438 15,464 15,961 11,028 10,282 9,245 8,669 11,301 12,448 100.0% 142,773 171,543 100.0% 152,712 100.0%

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36 www.autofile.co.nz Market starting to ease back here was an easing in sales Abernethy, of Regional Ford in Gore, down, and put big wheels and the cut-away Leaf that has been of second-hand cars last reports a drop in used-vehicle sales grunty exhausts on them,” he says. featured in a number of magazines month with 17,391 units especially during the last five months “People then buy them as weekend and publications.” soldT by traders to members of the of last year, but trade climbed up in cars. These buyers aren’t worried On the impact on the electric public – a decrease of three per December “to where we want to be”. about the price of fuel because market with the change in cent on December 2017. He says: “Because new sales they have a small car to use during government, he says: “Labour and There were 11,663 trade-ins for have been so good, used haven’t the week.” the Greens made me feel more a 1.7 per cent drop on December grown as much as franchises are Being located close to the Hibiscus comfortable in thinking they may 2017’s total of 11,868. perhaps sending more used trade- Coast Highway means the business abstain from introducing road-user As for public-to-public sales, ins to other outlets that specialised benefits from “huge traffic volumes – charges on EVs. 39,691 units changed hands last in imports in the past, but they you can’t really lose on that”. “There are rumours around month, which was down 3.1 per now have more New Zealand-new Dave Boot, of EV City in feebates – government incentives cent on December 2017. stock being offered to them.” Christchurch, is pleased EVworld to try to accelerate EV uptake. I’m New Plymouth returned the Brandon Keit, of Motive Trading South was held in the city for the sort of against that. I don’t think it biggest percentage rise in dealer in Silverdale, retails used Holden first time late last year and his needs to happen. As soon as the sales at 10.7 per cent, while trade-ins Commodores, Ford Falcons, business had a site at the event, government tells people they should rose by 111.1 per cent in Greymouth. European sedans and utes. which boosted the local market. go and buy a Leaf and get a rebate, Looking back on 2018, Nathan “We tidy them up, lower them “We did some filming about the price of Leafs will go up.”

Secondhand car sales - December 2018

Dealer To Public Public To Public Public To Dealer Dec ’18 Dec ’17 +/- % MarKET SHARE Dec ’18 Dec ’17 +/- % Dec ’18 Dec ’17 +/- % Whangarei 556 591 -5.9 3.2 1896 1,867 1.6 234 314 -25.5 Auckland 6001 5,896 1.8 34.5 13324 13,977 -4.7 4541 4,494 1.0 Hamilton 1345 1,391 -3.3 7.7 2983 3,053 -2.3 913 1,002 -8.9 Thames 278 294 -5.4 1.6 613 647 -5.3 176 129 36.4 Tauranga 825 838 -1.6 4.7 1814 1,881 -3.6 540 509 6.1 Rotorua 392 362 8.3 2.3 919 969 -5.2 129 125 3.2 Gisborne 165 157 5.1 0.9 387 354 9.3 55 70 -21.4 Napier 653 613 6.5 3.8 1355 1,449 -6.5 364 348 4.6 New Plymouth 383 346 10.7 2.2 912 864 5.6 200 210 -4.8 Wanganui 240 226 6.2 1.4 567 602 -5.8 141 95 48.4 Palmerston North 729 734 -0.7 4.2 1584 1,548 2.3 573 552 3.8 Masterton 204 239 -14.6 1.2 457 476 -4.0 102 124 -17.7 Wellington 1619 1,526 6.1 9.3 2889 3,049 -5.2 969 1,063 -8.8 Nelson 306 298 2.7 1.8 1033 1,010 2.3 188 248 -24.2 Blenheim 143 175 -18.3 0.8 429 429 0.0 73 106 -31.1 Greymouth 63 67 -6.0 0.4 163 163 0.0 38 18 111.1 Westport 2 4 -50.0 0.0 37 28 32.1 0 0 0.0 Christchurch 2159 2,813 -23.2 12.4 4778 5,019 -4.8 1697 1,671 1.6 Timaru 189 205 -7.8 1.1 464 521 -10.9 96 82 17.1 Oamaru 23 34 -32.4 0.1 98 99 -1.0 2 9 -77.8 Dunedin 715 687 4.1 4.1 1949 1,934 0.8 379 441 -14.1 Invercargill 401 428 -6.3 2.3 1040 1,020 2.0 253 258 -1.9 NZ Total VIR-autotalk-banner-resize.pdf17,391 17,924 1 8/7/18-3.0 11:18100.00 AM 39,691 40,959 -3.1 11,663 11,868 -1.7

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M Vehicle Information Reports now include Y Takata airbag recall alerts. CM *Not all manufacturer data is available yet MY

CY

CMY www.motorweb.co.nz Protecting motor vehicle dealers since 2001. K

www.autofile.co.nz 37 New Passenger Vehicle Sales by Make - December 2018 New Passenger Vehicle Sales by Model - December 2018

Dec ’18 2018 YEAR 2018 Dec ’18 2018 YEAR 2018 Make Dec ’18 Dec ’17 +/- % Make Model Dec ’18 Dec ’17 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Toyota 2,176 2,397 -9.2 28.3% 21,366 19.7% Toyota Corolla 732 1,116 -34.4 9.5% 7,303 6.7%

Holden 772 669 15.4 10.1% 8,394 7.8% Toyota Rav4 515 516 -0.2 6.7% 4,966 4.6%

Mazda 712 645 10.4 9.3% 10,170 9.4% Toyota Highlander 326 182 79.1 4.2% 2,684 2.5%

Mitsubishi 504 662 -23.9 6.6% 7,609 7.0% Mazda Cx-5 252 227 11.0 3.3% 3,698 3.4%

Hyundai 492 445 10.6 6.4% 7,350 6.8% Volkswagen Tiguan 221 68 225.0 2.9% 1,880 1.7%

Nissan 425 354 20.1 5.5% 4,666 4.3% Nissan X-Trail 210 142 47.9 2.7% 1,860 1.7%

Volkswagen 366 178 105.6 4.8% 4,048 3.7% Mitsubishi Outlander 202 160 26.3 2.6% 2,407 2.2%

Suzuki 330 490 -32.7 4.3% 6,479 6.0% Toyota Camry 191 136 40.4 2.5% 894 0.8%

Kia 327 251 30.3 4.3% 6,898 6.4% Mazda Mazda3 175 103 69.9 2.3% 2,114 2.0%

Ford 252 210 20.0 3.3% 5,314 4.9% Nissan Qashqai 169 176 -4.0 2.2% 2,165 2.0%

Honda 225 363 -38.0 2.9% 5,311 4.9% Mitsubishi Asx 166 287 -42.2 2.2% 2,436 2.3%

Subaru 179 179 0.0 2.3% 3,641 3.4% Suzuki Swift 163 188 -13.3 2.1% 3,036 2.8%

Mercedes-Benz 166 194 -14.4 2.2% 2,251 2.1% Kia Sportage 161 159 1.3 2.1% 3,295 3.0%

Jeep 120 162 -25.9 1.6% 1,564 1.4% Toyota Yaris 160 272 -41.2 2.1% 2,009 1.9%

Skoda 70 79 -11.4 0.9% 1,579 1.5% Hyundai Kona 136 129 5.4 1.8% 1,707 1.6%

Lexus 66 66 0.0 0.9% 808 0.7% Hyundai Santa Fe 126 113 11.5 1.6% 1,569 1.4%

Haval 63 35 80.0 0.8% 565 0.5% Holden Astra 124 79 57.0 1.6% 1,014 0.9%

Audi 59 146 -59.6 0.8% 1,813 1.7% Holden Commodore 124 105 18.1 1.6% 1,850 1.7%

Land Rover 58 76 -23.7 0.8% 1,068 1.0% Toyota Landcruiser Prado 117 36 225.0 1.5% 1,159 1.1%

Ssangyong 47 50 -6.0 0.6% 673 0.6% Holden Captiva 98 156 -37.2 1.3% 2,015 1.9%

Bmw 40 139 -71.2 0.5% 1,651 1.5% Holden Trax 98 71 38.0 1.3% 942 0.9%

Jaguar 34 20 70.0 0.4% 408 0.4% Hyundai Tucson 98 131 -25.2 1.3% 1,820 1.7%

Volvo 30 46 -34.8 0.4% 639 0.6% Honda Hr-V 97 69 40.6 1.3% 1,261 1.2%

Peugeot 25 65 -61.5 0.3% 876 0.8% Mazda Mazda2 91 81 12.3 1.2% 1,215 1.1%

Alfa Romeo 18 7 157.1 0.2% 153 0.1% Ford Escape 83 58 43.1 1.1% 1,359 1.3%

Mini 18 35 -48.6 0.2% 609 0.6% Holden Equinox 81 72 12.5 1.1% 901 0.8%

Renault 16 44 -63.6 0.2% 261 0.2% Holden Barina 75 38 97.4 1.0% 471 0.4%

Isuzu 15 16 -6.3 0.2% 278 0.3% Mazda Cx-9 71 115 -38.3 0.9% 1,016 0.9%

Tesla 15 21 -28.6 0.2% 254 0.2% Holden Acadia 70 0 7,000.0 0.9% 164 0.2%

Porsche 11 15 -26.7 0.1% 348 0.3% Mazda Cx-3 70 89 -21.3 0.9% 1,343 1.2%

Seat 8 2 300.0 0.1% 122 0.1% Honda Crv 67 144 -53.5 0.9% 1,622 1.5%

Yamaha 8 12 -33.3 0.1% 96 0.1% Mitsubishi Eclipse Cross 66 25 164.0 0.9% 1,660 1.5%

Can-Am 7 4 75.0 0.1% 53 0.0% Suzuki Vitara 65 78 -16.7 0.8% 1,170 1.1%

Ldv 6 5 20.0 0.1% 80 0.1% Holden Spark 63 63 0.0 0.8% 636 0.6%

Citroen 5 10 -50.0 0.1% 234 0.2% Subaru Xv 61 44 38.6 0.8% 1,192 1.1%

Others 16 59 -72.9 0.2% 581 0.5% Others 2,157 2,723 -20.8 28.1% 41,377 38.2%

Total 7,681 8,151 -5.8 100.0% 108,210 100.0% Total 7,681 8,151 -5.8 100.0% 108,210 100.0%

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships December 2018 ( vs November 2018) S S Web - Classified 0.9% Web - Dealer 1.3% S Web - Dealer 4.7% T E E D S V

Web - Dealer Direct L Web - Classified A 9.8% I 3.2% 7.2% E A R E

L Brand 38.8% T D Web - Classified 1.6% S Repeat 12.9% Smart Digital Tools

38 www.autofile.co.nz New Passenger Registrations - 2016-2018 Toyota top car brand 12,000

otal sales of new passenger 7,303 units and the RAV4 on 4,966. 11,000 cars and SUVs in 2018 were Mazda’s CX-5 came third with 3,698. down by 0.4 per cent, or 398 Toyota NZ is now celebrating 31 10,000 Tunits, on 2017’s volumes – 108,210 years as the country’s dominant car units compared to 108,608. marque despite its business shift at 9,000 However, it was a fifth record the start of 2018. year in a row for registrations of “Offering a full range of models 8,000 new vehicles overall. They climbed has helped us maintain market by one per cent, or by 1,650 units, leadership,” says Neeraj Lala, 7,000 2016 above 2017’s total of 160,115 new- general manager of new-vehicle 2017 vehicle sales. sales. “It’s a fantastic result given 2018 6,000 Toyota was the top new-car changes we made with driveaway Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec marque last year with 21,366 pricing on April 1.” sales. Second spot went to Mazda Lala says its increase of SUV luxury car sector with 2,251 of 17 per cent. It was followed by with 10,170 units and Holden was sales aided Toyota in 2018 and he registrations, followed by Audi with pick-ups and chassis-cab four-by- third on 8,394. predicts the marque will remain 1,813 and BMW on 1,651. fours with 15 per cent. Toyota claimed a models top for car registrations this year. Last year’s top segment was Visit www.autofile.co.nz for one-two with the Corolla selling Mercedes-Benz topped the medium SUVs with a market share more analysis of 2018’s statistics.

NEW VEHICLE SALES BY BUYER TYPE - December 2018 NEW VEHICLE MARKET SEGMENTATION - December 2018

Dec '18 Dec '17 Mth % 2018 YTD 2017 YTD % YTD Dec '18 Dec '17 Mth% diff 2018 YTD 2017 YTD % YTD Passenger 2,782 3,405 -18.3 40,239 45,038 -10.7 Passenger 2,782 3,405 -18.3 40,200 44,982 -10.6 Private 655 848 -22.8 13,734 15,807 -13.1 SUV 4,893 4,693 4.3 67,590 62,868 7.5 Business 838 1,016 -17.5 15,831 17,413 -9.1 Light Commercial 3,024 2,850 6.1 46,069 44,218 4.2 Gov’t 56 55 1.8 2,078 1,930 7.7 Heavy Commercial 352 450 -21.8 6,349 5,905 7.5 Rental 1,233 1,486 -17.0 8,596 9,888 -13.1 Other 99 145 -31.7 1,311 1,851 -29.2 Total Market 11,150 11,543 -3.4 161,519 159,824 1.1 SUV 4,893 4,693 4.3 67,592 62,881 7.5 Private 1,618 1,850 -12.5 28,464 27,225 4.6 Micro 130 162 -19.8 1,231 1,716 -28.3 Business 1,723 1,907 -9.6 28,393 25,441 11.6 Light 727 917 -20.7 12,792 12,481 2.5 Gov’t 125 87 43.7 1,185 1,120 5.8 Small 1,279 1,654 -22.7 16,812 19,268 -12.7 Rental 1,427 849 68.1 9,550 9,095 5.0 Medium 325 344 -5.5 4,091 5,556 -26.4 Large 178 182 -2.2 3,055 3,196 -4.4 Light Commercial 3,024 2,850 6.1 46,078 44,234 4.2 Upper Large 2 17 -88.2 93 116 -19.8 Private 728 793 -8.2 11,336 10,893 4.1 People Movers 106 39 171.8 871 956 -8.9 Business 2,098 1,817 15.5 30,605 29,621 3.3 Sports 35 90 -61.1 1,255 1,693 -25.9 Gov’t 118 146 -19.2 2,119 1,808 17.2 SUV Small 1,324 1,379 -4.0 20,937 17,309 21.0 Rental 80 94 -14.9 2,018 1,912 5.5 SUV Medium 1,970 2,057 -4.2 27,162 26,507 2.5 Sub Total 10,699 10,948 -2.3 153,909 152,153 1.2 SUV Large 1,541 1,217 26.6 18,574 18,326 1.4 Private 3,001 3,491 -14.0 53,534 53,925 -0.7 SUV Upper Large 58 40 45.0 917 726 26.3 Business 4,659 4,740 -1.7 74,829 72,475 3.2 Light Buses 27 62 -56.5 811 1,042 -22.2 Gov’t 299 288 3.8 5,382 4,858 10.8 Vans 415 347 19.6 6,344 6,322 0.3 Rental 2,740 2,429 12.8 20,164 20,895 -3.5 Pick Up/Chassis Cab 4x2 1,012 952 6.3 15,044 14,683 2.5 Heavy Commercial 352 450 -21.8 6,349 5,905 7.5 Pick Up/Chassis Cab 4x4 1,570 1,489 5.4 23,870 22,171 7.7 Heavy Commercial 352 450 -21.8 6,349 5,905 7.5 Other 99 145 -31.7 1,311 1,851 -29.2 Other 99 145 -31.7 1,311 1,851 -29.2 Total 11,150 11,543 -3.4 161,569 159,909 1.0 Total Market 11,150 11,543 -3.4 161,519 159,824 1.1

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships December 2018 ( vs November 2018) S S Web - Classified 0.9% Web - Dealer 1.3% S Web - Dealer 4.7% T E E D S V

Web - Dealer Direct L Web - Classified A 9.8% I 3.2% 7.2% E A R E

L Brand 38.8% T D Web - Classified 1.6% S Repeat 12.9% Smart Digital Tools

www.autofile.co.nz 39 Blue oval takes out double ord NZ has secured an registrations. This was an increase New Commercial Sales - 2016-2018 impressive double in the 6,000 of four per cent compared to 2017’s 2016 market for light commercials total of 51,507 to make 2018 the 5,500 2017 F– best-selling marque and model 2018 best year on record. of 2018. 5,000 Demand for utes continued to The Ranger with 9,906 run hot with third spot on last year’s 4,500 registrations beat the Toyota Hilux’s models ladder being taken out by total of 8,095 by 1,811 units. The 4,000 Mitsubishi’s Triton. Its sales came to blue oval’s ute was also best-selling 4,724 for 8.8 per cent of the market. 3,500 overall new vehicle for the fourth The market shares for the Ranger year in a row and was the country’s 3,000 and Hilux were 18.5 and 15.1 per top commercial for the fifth 2,500 cent respectively. consecutive year. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Fourth spot went to Holden’s Ford’s success in the commercial Colorado, which sold 4,592 units in market was boosted by its new enjoyed among commercial buyers customers for choosing Ford and 2018. Nissan’s Navara was fifth with Transit Custom, which experienced and fleets that keep the country our dealer network for providing 3,673 registrations. 22 per cent year-on-year growth. working,” says Simon Rutherford, fantastic service that made it The best-selling van was Toyota’s “While the Ranger’s popularity managing director of Ford NZ. possible.” Hiace on 2,492 units. It was followed continues, we’re also happy about “We are proud of the Last year’s new commercial by Fiat’s Ducato with 1,097 and the positive response the Transit has achievement. We thank our vehicle market grew with 53,555 Hyundai’s iLoad on 734.

New Commercial Sales by Make - December 2018 New Commercial Sales by Model - December 2018

Dec ’18 2018 YEAR 2018 Dec ’18 2018 YEAR 2018 Make Dec ’18 Dec ’17 +/- % Make Model Dec ’18 Dec ’17 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Toyota 725 595 21.8 20.9% 10,924 20.4% Ford Ranger 604 597 1.2 17.4% 9,906 18.5% Ford 647 657 -1.5 18.6% 11,061 20.7% Toyota Hilux 588 442 33.0 16.9% 8,095 15.1% Mitsubishi 405 285 42.1 11.7% 4,725 8.8% Mitsubishi Triton 405 284 42.6 11.7% 4,724 8.8% Holden 240 473 -49.3 6.9% 4,677 8.7% Nissan Navara 240 191 25.7 6.9% 3,673 6.9% Nissan 240 191 25.7 6.9% 3,673 6.9% Holden Colorado 233 439 -46.9 6.7% 4,592 8.6% Isuzu 199 285 -30.2 5.7% 3,517 6.6% Toyota Hiace 121 137 -11.7 3.5% 2,492 4.7% Mercedes-Benz 188 68 176.5 5.4% 1,432 2.7% Mazda Bt-50 116 145 -20.0 3.3% 2,076 3.9% Volkswagen 138 81 70.4 4.0% 1,875 3.5% Mercedes-Benz X-Class 107 0 10700.0 3.1% 315 0.6% Mazda 116 145 -20.0 3.3% 2,076 3.9% Isuzu D-Max 104 153 -32.0 3.0% 2,277 4.3% Ldv 106 118 -10.2 3.1% 1,918 3.6% Fiat Ducato 92 81 13.6 2.7% 1,097 2.0% Fiat 93 82 13.4 2.7% 1,101 2.1% Hyundai iload 69 42 64.3 2.0% 734 1.4% Hyundai 71 45 57.8 2.0% 758 1.4% Volkswagen Amarok 59 48 22.9 1.7% 940 1.8% Hino 37 53 -30.2 1.1% 707 1.3% Mercedes-Benz Sprinter 58 53 9.4 1.7% 892 1.7% Renault 34 10 240.0 1.0% 247 0.5% Ford Transit 43 60 -28.3 1.2% 1,155 2.2% Fuso 32 96 -66.7 0.9% 856 1.6% Isuzu N Series 40 75 -46.7 1.2% 466 0.9% Great Wall 30 10 200.0 0.9% 257 0.5% Ldv T60 39 33 18.2 1.1% 839 1.6% Iveco 28 30 -6.7 0.8% 296 0.6% Isuzu F Series 38 37 2.7 1.1% 489 0.9% Foton 27 43 -37.2 0.8% 456 0.9% Volkswagen T6 31 15 106.7 0.9% 432 0.8% Alexander Dennis 22 0 2200.0 0.6% 150 0.3% Great Wall Steed 30 10 200.0 0.9% 257 0.5% Ud Trucks 20 18 11.1 0.6% 271 0.5% Ldv V80 29 62 -53.2 0.8% 626 1.2% Others 72 135 -46.7 2.1% 2,578 4.8% Others 424 516 -17.8 12.2% 7,478 14.0% Total 3,470 3,420 1.5 100.0% 53,555 100.0% Total 3,470 3,420 1.5 100.0% 53,555 100.0%

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40 www.autofile.co.nz Vans secure top three positions here were 12,167 used we want during 2019, it should be Used Commercial Sales - 2016-2018 commercial vehicles sold in 1,300 alright,” says Keit. “We do get trade-ins. New Zealand last year, which We get a lot of builders wanting flat- Twas a 6.6 per cent drop compared to 1,200 deck utes and vans. That’s our market. 13,032 registrations in 2017. 1,100 “Last year was average, although Toyota’s Hiace dominated model we had a couple of good weeks registrations last year with a market 1,000 during the end of November and share of 33.9 per cent thanks to 900 start of December. That was good, 4,127 sales. Nissan’s Caravan was but it always needs to be better.” 800 second with 780 and Mazda’s Bongo 2016 Owen Gibbs, salesman at Royale 2017 third with 581. 700 Cars in Hamilton, says many would- 2018 The best-selling marque was be buyers are after used Ford 600 Toyota. Its 349 sales in December, Rangers with most coming from Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec which were down by 12.8 per cent outside the city. on the same month in 2017, took its a distant third on 723 registrations utilities from across New Zealand. “Everyone wants a ute, especially total for last year to 5,397 units for a and 5.9 per cent. He’s constantly on the look-out the Ranger. We only have two Rangers total market share of 44.4 per cent. Brandon Keit, of Motive for utes to keep up with demand available on the yard because I’ve just Nissan came second overall Trading Ltd in Silverdale, runs “a from tradies and small businesses sold one. We’ve bought more stock. with a market share of 20.8 per $10,000 yard without importing needing them for workers. We have our sources and can get utes cent and 2,533 units, with Mazda from Japan” and buys used “If we can keep getting stock when we need them.”

Used Commercial Sales by Make - December 2018 Used Commercial Sales by Model - December 2018

Dec ’18 2018 YEAR 2018 Dec ’18 2018 YEAR 2018 Make Dec ’18 Dec ’17 +/- % Make Model Dec ’18 Dec ’17 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Toyota 349 400 -12.8 41.1% 5,397 44.4% Toyota Hiace 269 301 -10.6 31.7% 4,127 33.9% Nissan 169 204 -17.2 19.9% 2,533 20.8% Nissan Caravan 59 60 -1.7 6.9% 780 6.4% Ford 48 51 -5.9 5.7% 509 4.2% Mazda Bongo 29 47 -38.3 3.4% 581 4.8% Isuzu 45 47 -4.3 5.3% 669 5.5% Nissan Nv200 29 31 -6.5 3.4% 499 4.1% Mazda 39 55 -29.1 4.6% 723 5.9% Fiat Ducato 27 91 -70.3 3.2% 258 2.1% Mitsubishi 36 36 0.0 4.2% 422 3.5% Isuzu Elf 26 24 8.3 3.1% 396 3.3% Hino 33 25 32.0 3.9% 404 3.3% Nissan Vanette 25 41 -39.0 2.9% 350 2.9% Fiat 28 94 -70.2 3.3% 268 2.2% Toyota Regius 24 21 14.3 2.8% 411 3.4% Chevrolet 20 24 -16.7 2.4% 214 1.8% Nissan Nv350 22 32 -31.3 2.6% 391 3.2% Holden 19 20 -5.0 2.2% 220 1.8% Mitsubishi Canter 21 19 10.5 2.5% 194 1.6% Volkswagen 10 13 -23.1 1.2% 66 0.5% Nissan Atlas 20 14 42.9 2.4% 247 2.0% Daihatsu 7 2 250.0 0.8% 62 0.5% Toyota Toyoace 18 14 28.6 2.1% 205 1.7% Dodge 5 6 -16.7 0.6% 69 0.6% Toyota Dyna 17 27 -37.0 2.0% 385 3.2% Mercedes-Benz 5 14 -64.3 0.6% 79 0.6% Hino Dutro 16 11 45.5 1.9% 192 1.6% Gmc 4 9 -55.6 0.5% 59 0.5% Ford Ranger 15 22 -31.8 1.8% 163 1.3% Suzuki 4 6 -33.3 0.5% 77 0.6% Toyota Hilux 12 21 -42.9 1.4% 145 1.2% Factory Built 3 1 200.0 0.4% 17 0.1% Holden Colorado 11 9 22.2 1.3% 92 0.8% Kenworth 3 2 50.0 0.4% 22 0.2% Hino Ranger 11 8 37.5 1.3% 158 1.3% Land Rover 3 4 -25.0 0.4% 19 0.2% Ford Transit 11 9 22.2 1.3% 135 1.1% Citroen 2 1 100.0 0.2% 17 0.1% Ford F150 9 5 80.0 1.1% 82 0.7% Others 17 30 -43.3 2.0% 321 2.6% Others 178 237 -24.9 21.0% 2,376 19.5% Total 849 1,044 -18.7 100.0% 12,167 100.0% Total 849 1,044 -18.7 100.0% 12,167 100.0%

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www.autofile.co.nz 41 Nine months’ supply in stock ome 9,317 new passenger Graeme Gibbons, chief executive every brand pushing for every sale “The political tune in New vehicles crossed the border of Colonial Motor Company (CMC), and each point of market share. Zealand is leading to change. What is last month – up by 6.7 per cent says 2018 saw the overall automotive Product continues to be king.” unsure is how these changes might onS the same month of 2017 and up industry notch up its ninth year of Ford’s light commercials with the affect future economic prospects. by 19.1 per cent on November’s total. continuous growth from the low Ranger and new Transit Custom, and Meanwhile, we will continue to Last month saw 7,681 units sold. point of the global financial crisis. Mazda, with its strong SUV range, look to the future, make the most of However, this was down by 19.5 per He notes CMC, as a group of “excel in their respective segments”. today, and be prepared to adapt and cent on November and 5.8 per cent vehicle dealerships, has benefitted Gibbons says: “New models and change at any time.” on December 2017. from the strength of the Kiwi competitors’ actions to win back John Hutchinson, dealer When taking into account new economy, which has been behind business ensure we need to be on principal of Team Hutchinson car imports last month minus sales, automotive growth. our game every month. Ford in Christchurch, says: “As new there was an increase in stock of The light end of the market “The sheer volume of vehicles cars become more affordable, I 1,636 units, ending the year with – passenger cars, SUVs and light coming in – both new and used think we will see a switchover to 80,938 units yet to be registered. commercials – slowed their rate of imports – continues to require more people choosing to buy new rather If sales remain at 296 per day, growth last year, says Gibbons, to capacity than the domestic vehicle- than used. With a new vehicle, as averaged over the past 12 down by about 2.5 per cent year distribution system can cater for. It maintenance costs are low and you months, there are 273 days’ stock over year compared to 14 per cent leads to delays in delivering vehicles.” have a warranty. on-hand in New Zealand – or nine more than a year ago. As for the future, Gibbon says: That said, he doesn’t expect to months’ supply. “The extra-heavy truck part “Factors that have driven the New see a drop in the price of used cars. There were 117,947 new cars of the market, while smaller in Zealand and world economies for “There’s always someone who imported last year and 108,210 numbers, has continued to grow at the past decade are changing – comes in to buy a used car, even an sold, so at year-end there were a stronger rate,” he adds. fundamentals and international older used vehicle that’s still five or 9,737 more units in stock than at “The vehicle industry continues trade policies have the potential 10 years newer than their current the end of 2017. to be intensely competitive with to disrupt. drive,” says Hutchinson.

Dealer stock of new cars in New Zealand Days stock in NZ - new Cars

CAR Sales DAILY SALES Days Variance Stock - 12-MONTH stock 280 Imported Registered AVERAGE at hand

Dec ‘17 8,736 8,151 585 71,201 298 239 260 December 2017 — December 2018 Jan ‘18 8,086 10,798 -2,712 68,489 299 229 Feb ‘18 7,281 7,415 -134 68,355 298 230 240 Mar ‘18 9,954 9,050 904 69,259 297 233 Apr ‘18 10,268 6,848 3,420 72,679 297 245 220 December 2016 — December 2017 May ‘18 12,102 9,275 2,827 75,506 299 252 Jun ‘18 10,138 9,725 413 75,919 298 255 200 Jul ‘18 11,503 8,040 3,463 79,382 299 265 180 Aug ‘18 11,175 8,639 2,536 81,918 299 274 Sep ‘18 10,382 9,431 951 82,869 298 278 160 Oct ‘18 9,921 11,765 -1,844 81,025 300 270 of stock Days

Nov ‘18 7,820 9,543 -1,723 79,302 298 266 140 Dec ‘18 9,317 7,681 1,636 80,938 296 273

Year to date 117,947 108,210 9,737 120 Change on last month 19.1% -19.5% 2.1% 0 v g

Change on Dec 2017 6.7% -5.8% 13.7% ay Oct S ep J u L F eb N o APR D e c J an J un Dec A u M M ar More IMPORTED LESS SOLD MORE STOCK

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42 www.autofile.co.nz ‘Challenging’ year for imports here were 29,738 used 454 – and seven down on 413 in Hedgepeth says it’s unclear will affect new and used dealers.” imported passenger vehicles November 2018. exactly why the used car market has Torben Freer, general manager of sitting in stock at the end Last year, there were 142,773 slowed. But he suggests there has Giltrap Skoda in Auckland, says: “Last Tof 2018 after a total of 12,448 units used cars imported compared to been a lack of consumer confidence year, we were getting people trading crossed the border during December 147,637 registered fresh imports. This compounded by the rising cost of in used Subaru Legacys or Hyundai and 11,061 were sold. reduced stock over the previous year fuel and the tough housing market. Santa Fes, and purchasing Octavias, When taking into account by 4,864 units. “It’s worse in Auckland than the Superb wagons and a lot of SUVs. imports minus registrations, there Greg Hedgepeth, who is the chief rest of the country,” he adds. “But I “We struggled a little bit in terms was an increase in stock last month executive officer of Turners Group think growth has slowed across the of having good used SUVs because of 4.9 per cent – or 1,387 units – NZ, describes last year as having market. Dealer numbers are not the Kodiaq and Karoq are still in their when compared to November. been challenging for the used car shrinking, however there have not infancy in the New Zealand market. Despite this rise in stock, the end import industry, which makes up a been many new dealerships opening. “I’m confident that – as we go of 2018 was still 14.1 per cent down small proportion of its business. “January to March are usually into 2019 – our used sales will get on 34,602 units of stock held in the “I have heard people say 2018 strong months and we’re seeing signs stronger and stronger. same month of 2017. was a ‘perfect storm’ for those already [in December] that the market “Getting used stock is difficult If registrations remain at 404 per in the world of Japanese used is improving in the short term. for Skoda at the moment. We day as averaged over the past 12 imports,” he says. “We had a busy run into the are a growth brand. We don’t months, there are 74 days of stock “There were supply issues at the Christmas period. There are have Japanese or UK-imported on-hand – or just over two months’ start of the year and then there was additional costs for imports, but Skodas, which is good in one sense of supply on dealers’ yards or in plenty of stock available. the market will adapt and 2019 will because it helps our new-vehicle storage facilities. “In August, Trade Me had a record be a better year. residuals when they come back December’s daily sales average number of used cars listed for sale “It will be interesting to see into the used market. was down by 50 registrations and they weren’t selling through as what happens during the stink-bug “But it also makes it very difficult on December 2017’s total of fast as they had been.” season. There will be delays, and it to get good-quality used Skodas.”

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 Dec ‘17 13,097 14,102 -1,005 34,602 454 76 Jan ‘18 10,479 13,719 -3,240 31,362 456 69 140 Feb ‘18 7,686 12,048 -4,362 27,000 455 59 Mar ‘18 10,772 11,841 -1,069 25,931 448 58 120 Apr ‘18 19,438 10,893 8,545 34,476 444 78 May ‘18 15,464 13,420 2,044 36,520 441 83 100 December 2017 — December 2018 Jun ‘18 15,961 12,651 3,310 39,830 439 91 Jul ‘18 11,028 13,847 -2,819 37,011 438 85 80 Aug ‘18 10,282 13,368 -3,086 33,925 434 78 Sep ‘18 9,245 11,533 -2,288 31,637 429 74 60 Days of stock Days December 2016 — December 2017 Oct ‘18 8,669 12,100 -3,431 28,206 423 67

40 Nov ‘18 11,301 11,156 145 28,351 413 69 Dec ‘18 12,448 11,061 1,387 29,738 404 74

20 Year to date 142,773 147,637 (4,864) Change on last month 10.1% -0.9% 4.9% v g

ay Change on Dec 2017 -5.0% -21.6% -14.1% Oct S ep J u L F eb N o APR D e c J an J un Dec A u M M ar LESS IMPORTED LESS SOLD LESS STOCK

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