9 September 2010 The voice of the auto industry Showrooms unscathed Christchurch car yards Mark Wheeler at Continental Continental Prestige on Manchester St escaped serious are largely untouched by the Prestige on Manchester St had a damage when bricks fell from the adjacent building September 4 earthquake, lucky escape when bricks fell from dealers report. the roof of the adjacent building, The worst of the damage is to but did not seriously damage his older buildings, and to residential showroom or vehicles. areas built over silt. With caryards Some however were feeling tending to sit in open spaces, away the mental strain of frequent from the old buildings, damage has aftershocks. One reported a been minimal and Christchurch’s mechanic who had fears about motor industry is largely intact. being under a hoist, and another Some dealers reported minor had staff off sick from drinking damage to buildings, found contaminated water. filling cabinets overturned and Lyttelton Port has reported tools and parts scattered in the damage that will cost tens of monitored by engineers after to be unloaded, though one workshops, but most dealers millions of dollars to repair, with each aftershock, but remains worry is that due to CBD office Autofile spoke with said their cracking reported in some of fully operational, with ships closures there could be delays in premises were largely unaffected. the buildings. The port is being arriving and cars continuing documentation processing. See further coverage on page 12-13 The pre-GST rush – what’s that? There’s no sign yet of the The phrase that crops up most boom is an unequivocal “no.” Wilson Motors, remains optimistic anticipated used car sales upsurge commonly is that the market is “It certainly hasn’t taken off like I about the market, though he ahead of the October 1 GST increase. “patchy and up and down,” good thought, but we’re still waiting.” describes it as “strange; there’s no So say dealers spoken to alternating with bad. Hamilton dealer Shayne rhyme or reason to it, you’re either by Autofile this week, though “Some days we have good O’Hagan’s take is much the same. flat-out or stopped. There’s no several reported a buoyant start days and some days we have bad “We haven’t seen a pre-GST rush; consistency.” to September. days,” says Daryn Pennington of business has just been steady, really. Wilson says he averages about The general consensus, Max Pennington’s Auto City in It’ll be interesting to see, as the two and a half weeks of sales in a however, is that the market is New Plymouth. month progresses, whether people typical month, and “then no sales for generally flat, lacks any clear His response when asked if there decide to buy before October 1.” a week and a half. pattern, and is hard to predict. has been any hint of a pre-GST sales Lloyd Wilson of Dunedin’s Lloyd “August was pretty soft and continued on page 20

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Hard times in Editor Stian Overdahl [email protected] Canterbury 021 247 7782 Advertising Brian McCutcheon [email protected] General Enquires Free phone 0508 288 863 [email protected] 021 455 775 Free phone 0508 288 863 Fax 03 4772758 Staff Writer & Motorsport PO Box 6222, Mike Stock Dunedin 9059 [email protected] Publishing Company Designer 4 Media Limited Adrian Payne PO Box 6222, [email protected] Dunedin 9059

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It’s strange how quickly it fairly well, though it seems events date. A week ago possible that businesses in the Canterbury was on everyone’s region may suffer a slowdown. Making An Impersonal Space Personal lips in connection with the failed However in any disaster finance company. it’s always those who have Righteous anger from it worst that experience financial commentators filled disproportionate hardship. the front pages of newspapers, Many homes were damaged complaining that we as a country and will be destroyed, and some should have to bail out SCF. of those are without insurance, With the earthquake in and without recourse to Christchurch, South Canterbury Earthquake commission funds. Finance has been pushed to the While some might feel that back pages, and rightfully so. a lecture on the importance of Sometimes it takes a crisis to insurance is due, it’s not a lesson focus people on what’s genuinely likely to provide much comfort. important in life. If you’d like to make a Since the earthquake, a large contribution to the Canterbury Revolutionalise The Way You Respond To Email Enquiry number of companies, including Earthquake Appeal you’ll find • Create Personalised Video E-Mail Responses Fonterra, Fletcher Challenge, information on how to do so on • Turn Your Static Images into Virtual Videos the Warehouse, big banks and a page 13. • Strengthen your Branding by Personally Introducing Your Products number of others have donated • Build Relationships with Your Customers & Prospects $1 million each to the relief fund. • Use Your Personality to Enhance Browsers Online Experience Christchurch’s motor industry Stian Overdahl appears to have got through Editor Visit www.autoplay.co.nz to beneet from our technology today, call 0508 288 688 or email [email protected]

www.autofile.co.nz | 3 news Buying Volvo a boost for Geely GEELY MOTORS New Zealand coming through in Geely vehicles.” hopes the brand’s acceptance Since launching in New Zealand locally will get a boost from in February, Geely’s sales have very good understanding of the the emotional positioning of the Chinese vehicle maker Zhejiang remained low, with four vehicles automotive industry, and knows brand is not sharp enough. Volvo Geely Holding Group Co’s sold in April, two in May, one in the value of the Volvo brand. It needs to find a Swedish-based, acquisition of iconic Swedish June, and four in July, although 10 makes no sense to merge this unique positioning.” carmaker, Volvo. were sold in August. brand; instead, you need to German-born Jacoby said he Geely bought Volvo from Ford Billman says Geely has been develop it further. I think there is no was first approached by Geely for approximately US$1.5 billion concentrating on finalising the misunderstanding on that point.” to head Volvo in June. “I was (NZ$2.08 billion). dealer network before beginning Jacoby, the former CEO of surprised to be offered the job. I Geely NZ’s general manager any serious promotional campaign. Volkswagen’s North American unit, liked working for VW in the US in Scott Billman says the Volvo Nine dealers have been appointed, says Volvo will look to build more a challenging role,” Jacoby said, purchase can only reflect well on and Billman expects that number emotional cars in the future and adding that Geely Chairman Li Geely, and believes it will help the to remain steady for the next six may look to cooperate with rivals Shufu’s ambitious plans for Volvo marque receive brand recognition months. New models are also likely to gain economies of scale. “convinced me to take the job.” in New Zealand. to be launched in the near future “Volvo will use its new-found Geely has indicated it’s The move also bodes well for says Billman. independence to react quickly to prepared to invest another $US900 Geely’s development, says Billman. Meanwhile, Volvo will continue market demands and enter “the million in future Volvo products “Volvo is a brand synonymous with to operate as an independent top league of premium brands. and a factory in China to boost the safety technologies, and I think it brand, says the recently-appointed “We will be upscale but will not brand’s volumes, while maintaining won’t take very long before we see CEO, Stefan Jacoby. just copy rivals. Volvo stands for its European operations to supply that advanced safety technology “I think our new owner has a safety, solidity and reliability but the international market. Think before you click Merrie leaves Nissan Thanks to the internet, information and address information made and unfortunately mis-information available – but again what was lost after 25 years both spread like wildfire, and your in the lemming-like reaction was average internet user doesn’t take that they were opting to withhold Senior Nissan New Zealand much convincing to click a few links if their details from the ‘authorised executive, Peter Merrie, has left it seems like a good idea at the time. parties’– the ones who will have the company after 25 years, Just ask the Nigerians… proven a legitimate need for the chief executive John Manley has Last week saw the mass un- information, and maybe the ones announced. informed public forwarding an e-mail that they will need one day to Among Merrie’s notable to everyone they knew, warning that trade-in their old car, and finance projects at Nissan were the higher- “soon a new law comes into effect and insure their new one. performance versions of the which allows third parties access to We estimate tens of thousands Maxima developed in-house and long-distance motor racing series. your name and address details via have ‘opted out’ from the MVR, and built by Peter van Breugel’s Prestige The 25 cars – 24 of them white, your vehicle registration plates.” We tens of thousands more will probably Motorsport outfit in Manukau City. one black – were assembled from a all know it’s always been available. continue to do so in the coming Merrie was also heavily involved kit developed by the late Peter Brock. What’s actually happening is that months. Unfortunately a quick check with the introduction of the GT-R Brock’s brother, Phil, came to their information WON”T be available with NZTA confirms that the only supercar to the NZ market. New Zealand to lead the team that from the MVR to just anyone. But way to ‘opt-back-in’ is a call to the call He’s had a long career in the built the Commodores in Trentham. those with an itchy mouse finger centre. The NZTA call centre doesn’t motor industry, working with In recent seasons, Merrie didn’t stop to figure this out. work on the weekends. General Motors in Wellington and has had a hands-on role in New The call to action was to So when a prospective the USA before joining Nissan. Zealand rallying, crewing on Reg ‘opt-out’ of having their name customer is trying to trade a car When he was at GM, he was Cook’s Nissan Pulsar and Micra Kiwi with you sometime next year, and the engineering overseer for the 2 cars and co-driving for Cook in they can’t prove they own it, limited production run of Holden Targa tarmac rally events. they might just rue the day Commodore V8s designed to Manley will assume Merrie’s they clicked before thinking… contest the Benson and Hedges media liaison duties.

4 | www.autofile.co.nz news

Saving more, spending less Cautious households

Consumers are injecting you don’t have that added boost Real Retail Sales Per Capita 375 equity into their mortgages to spending.” and deleveraging from debt, Eaqub believes that with Real retail spending per week per person 350 according to a report by the consumers focusing on saving and 1998-2007 trend NZIER. The report on household deleveraging of debt, and with 325 Making do spending says that each New finance companies lending less, with less in Zealander is now spending on big-ticket items will sell slower. a new 300 normal average $45 per week less than “Finance companies they were before the recession. have reduced their lending, 275 And a report released by the following on from the failures Treasury backs this up, saying of companies like Bridgecorp, 250 that households are starting to Hanover and now Canterbury Retail spending per week (2010 prices) (2010 week spending Retail per get on top of rising debt levels Finance, so the sector as a whole 225 for the first time in a decade. has shrunk. But we’re seeing a 1998 2000 2002 2004 2006 2008 2010 2012

Shamubeel Eaqub, prinicipal general reluctance to borrow Source: Statistics NZ, NZIER economist at the NZIER, says it’s and to lend, right across the impossible to tell whether this board, which has put a bit of a Thishappening, chart is firstlytaken we’refrom the starting Quarterly think Predictions you’re. goingThe blue to haveline shows the household retail spending signals a permanent shift in the hand-break on larger sales such perfrom capita, a lower excluding level, and the secondly impact of prices.same The sales grey as two-threeline shows yearsa strong upward trend in retail consumer mindset, or a short- as motor vehicles.” spendingthe rate of until growth 2007 has as householdsbeen less consumedago, well moreyou might and more. not see Retail that spending is now $45 less per person per week than the old trend. Cautious households are now making do with less. term reaction to uncertainty. Nevertheless there’s a silver than what we’ve been used to. until sometime late in 2012 or “What we have seen is that lining says Eaqub. When people Non-residentialSo if you’re a retailer construction and you at theearly precipice 2013.” the household sector is paying do return to the market they down debts, so rather than should be in a better position to Non-residential Construction & Consents purchasing they’re injecting purchase, having either accrued 1,200 equity into their mortgages, and savings or paid down debt. 1,100 Consents lagged 12 months 120 this is the first time it’s happened “This is a very positive in such a persistent manner development. Over the last 10 1,000 Non-residential, RHS 100 since the early 1990s. Whether or to 15 years we’ve accumulated 900 not this is a permanent shift we huge amounts of liabilities, huge 800 80 won’t know until after the fact. amounts of debt, and that’s not 700 “There are a lot of inter- sustainable. But the fact that 600 related issues. One is confidence we’re slowly starting to pay this 60 500

in the economy. Another is the back as households, that makes activity Real (1999$mn)

Consented floor area floorarea (000s) Consented 400 rate of growth in house prices. us less vulnerable to interest rate 40 If house prices remain flat as increases or economic shocks, 300 they have for the last couple of because we will have that cash 200 20 years, then it is very likely that reserve in our bank accounts. It’s 1989 1992 1995 1998 2001 2004 2007 2010 we will see a permanent shift to a positive in the long term for Source: Statistics NZ, NZIER precautionary savings.” retailers, but in the short term it While the housing market just sucks.” This chart is taken from the Quarterly Predictions. The blue line shows non-residential remains flat, growth in house Part of the situation with construction work done. The grey line is consents issued a year earlier. This shows that non- residentialTrans construction Future is about7 toVoyage collapse to the 40 lowest level since the early 1990’s. Consents prices alone don’t control retail is that growth prior to the have slumped from 3.1 million m2 in the year to June 2009 to 2.1 million m2 in the year to June spending, says Eaqub. recession is unlikely to occur 2010. This mayosaka put 27around Sep, Nagoya 20,000 28construction Sep, Kawasaki sector 2 Oct,jobs at risk. “When house prices are rising again any time soon, says Eaqub. Auckland 21 Oct, lyttelton 23 Oct, wellington 24 Oct, Nelson 25 Oct and people are borrowing it boosts “Retail spending was the rate of growth, but it doesn’t trending up very strongly, and Trans Future 5 Voyage 44 mean that there is no growth when when the recession happened osaka 9 Oct, Nagoya 12 Oct, Kawasaki 16 Oct, Page 2 house prices aren’t rising. we reduced our spending quite Auckland 3 Nov, lyttelton 5 Nov, wellington 6 Nov, Nelson 7 Nov We still think that household a bit. We’re spending a lot less spending will rise on average, now than we were a couple of Trans Future 6 Voyage 41 because household incomes will years ago. So this is kind of the osaka 25 Oct, Nagoya 26 Oct, Kawasaki 30 Oct, start to recover as the labour new normal, and we’re starting Auckland 18 Nov, lyttelton 20 Nov, wellington 21 Nov, Nelson 22 Nov market improves. But it’s probably from this base where we’ve not going to be as strong as when gotten used to consuming less. house prices were rising, because There are two things that are

www.autofile.co.nz | 5 news Let the buying begin

The Ministry of Economic All AoG vehicles fall into the 12 we were just trying to alert them Santa Fe, i-Load (van) and i-Max Development has signed the first categories, says Weir. “We’re not to the fact that there was reduced (minibus), though missing out contracts in its all-of-Government really touching specialist vehicles to pricing waiting in the wings.” on the utility segment. CEO Tom (AoG) vehicle tender process – with any extent, apart from the fact that Figures show that Government Ruddenklau says Hyundai isn’t Toyota, Mitsubishi and Hyundai if you want, for example a prisoner purchasing of passenger vehicles experiencing stock constraints. first in. Up to seven contracts transport van, it’s a van you can buy (excluding SUVs) is down around 650 “We’ve got a significant level remain to be signed, bringing the off the catalogue and then go and units compared to last year, while of stock arriving in anticipation of panel of suppliers to 10, though get modified. The agency will do its SUV and light commercial sales are this Government contract, with our these three are the largest. The own modifications.” close to 2009 year-to-date figures. biggest shipment ever arriving in three-year contracts, with two On top of price negotiations With Government vehicle September.” A significant portion of optional one year-extensions, are and suitability, vehicles were also purchasing relatively static, Weir this shipment is in the SUV segment, expected to save the Government assessed in terms of the safety says it’s likely that most deferred including the in-demand iX35. $18.5 million on vehicle goals set out in the 2010 Safer purchasing is of passenger Toyota has a vehicle in 11 of procurement across five years. Journeys Road Strategy, such as vehicles (non-SUV). “Passenger the 12 categories, a result it’s Several contracts, including Electronic Stability Control and vehicles tend to be a mainstay quite happy with, says sales and Holden’s to supply police vehicles, remain unaffected. The Hyundai iLoad Police vehicles are unaffected by the AOG The all-of-Government model is being applied to several procurement programmes, including passenger vehicles. Previously, the 198 Government agencies negotiated individually with suppliers. With some agencies purchasing as few as 20 vehicles, there was little scope to use the side impact airbags. Weir says that of most office-type government marketing general manager, Steve leverage the Government could these features would have been agencies, and it’s easier for them Prangnell. These include the Prius, apply negotiating as a single entity. made mandatory in the tender, to defer than say the likes of the Yaris, Hilux, Rav4, and Hiace variants. Phil Weir, manager of the except that in some categories they Department of Conservation, who Prangnell too expects that Government Procurement weren’t available. can’t really do without a vehicle if purchasing will begin immediately, Development Group says the Agencies will continue to use something breaks down or a lease and supply will be an issue. complexity of agencies’ vehicle fleet leasing companies to manage becomes due.” “Probably the critical thing in requirements meant that signing a their fleets, something that’s With the possibility of a surge the next four months, towards the contract with a single supplier was unlikely to change. “We’ve focused in buying, the successful suppliers end of the year, is which of the never an option. on the sourcing of vehicles not so have been careful to plan for the three of us, Toyota, Hyundai and “When we initially looked at the much the funding. How agencies signing of the contract Mitsubishi in their commercials, categories of vehicles it was pretty purchase or lease their vehicles, Mitsubishi is to supply the is going to have stock to supply, obvious that no one manufacturer and how they manage their fleets, Outlander and the Triton to two of because the industry is pretty lean, could meet everyone’s remains the agencies’ decision.” the categories, with both available in and we’re no different.” requirements, so we decided upon a Weir is happy with the final two- and four-wheel drive formats. Toyota NZ had also based its panel arrangement.” result. “The arrangements we Mike Davidson, Mitsubishi’s ordering on the premise of being Initially, it was hoped to achieved are resulting in lower national fleet sales manager, says awarded the contract. complete the tender process by prices than the agencies are there’s an expectation of some “We’ve been forecasting based June, but the variety of agency currently paying, and I think we reasonably immediate demand, but on the original announcement requirements, coupled with the actually have got a better deal than that orders had been placed to be timing of the AoG, back in June- contract being the first of its kind in the fleet companies out there.” able to meet any demand. “Stock July, and we’ve managed to New Zealand, meant the deadline With the contracts signed, it’s is very tight, and that’s a symptom convince Japan that we should became stretched, says Weir. likely that buying will begin as soon of the fact that the market is up carry some of those sales forward The AoG creates a catalogue as the final paperwork is completed. significantly on where it was last rather than reduce our forecast. of vehicles, with 12 classes, which And with agencies having been year. We’d ordered confidently in the “So we’re okay, but I wouldn’t are available to all agencies at aware that cheaper pricing was hope that we would be successful say that we’ve got a huge amount a fixed priced. If all remaining soon available, some purchasing with this contract, so we’ve got of stock, though we do have stock contracts are planned there will has been deferred for months, says good stocks coming online.” on the ground and in the pipeline be 33 different vehicles across Weir. “If agencies had a particular Hyundai has a large number that is planned for government the categories. Pricing within the urgent requirement they weren’t of vehicles across the categories, supply, which is a commitment categories remains competitive. being told not to go and purchase, including Getz, i30, i45, iX35, we’ve made.”

6 | www.autofile.co.nz news Minor adjustments for MVSA

The Motor Vehicle Sales up with what everybody in the Where the Trader is a on the Bill seemed content to Amendment Bill has passed its industry has agreed made sense.” Company, the CEO, in addition to discuss their ownership history third reading, supported by Heather Roy (ACT) said that Directors, will now be required to of vehicles, with David Clendon both sides of the House, with another benefit of the change submit registration information. (Green) divulging that his first the changes passing into law would be to reduce “the risk It also becomes an offence if the vehicle was a 1958 Morris Minor October 1. The review of the of confusion between private Registrar is not advised about van which he affectionately Motor Vehicle Sales Act began sellers and buyers as to their any changes in management called Molly. under Labour, reinforced by responsibilities and rights.” where the Trader is a company Grant Robertson (Labour) the fact that many of the MPs Traders will no longer be within 30 days of that change. seemed pleased to have the who spoke on the Bill were required to display a CIN when Licensed car wreckers will opportunity to point out that Labour MPs. Claire Curran selling to another trader, or no longer be treated as Traders there exists a profession held in (Labour) introduced the Bill, when selling to vehicle wreckers. under the Act. lower regard by the public than saying, “The aim of this bill is to The Motor Vehicle Disputes One loophole that was closed, politicians. reduce compliance costs, close Tribunal received a number of which came to light in the Tim “As we all know, used-car loopholes, and improve the adjustments, most obviously the Whittle case, is that traders can sales folk rank somewhere effective operation of the Motor increase of the financial limit at be banned even when their about where we do in terms Vehicle Sales Act” which cases can be heard, rising registration has lapsed. of trustworthiness. In the last There are a number of changes, $50,000 to $100,000. The passing of the Bill was the survey, politicians were still though none which are likely to At submissions stage, the first ministerial duty performed beating used-car salespeople, impact significantly on the day-to- Financial Services Federation by the new Minister of Consumer but prostitution had moved day business of dealers. (FSF) argued against such as Affairs, John Boscawen. above us, in terms of being a Car market operators, change: “We are very surprised Many of the MPs who spoke trusted profession.” including online platforms at the proposed increase in this such as Trade Me and Sella, and limit as if anything the cost of including operators of car fairs, vehicles has been falling over will no longer be considered recent years. Few complaints are motor vehicle traders if they are likely to involve new vehicles simply providing a venue where and the vast majority of used sales occur. imports are well below this Members of the public selling value threshold.” Nevertheless a at car markets will no longer be number of MPs commented on required to display a CIN when the raise as ‘future-proofing’ the selling a vehicle. The current limit of the Tribunal. requirement is that all vehicles The changes also allow for for sale at a car market such as costs to be awarded against both Take us for Trade Me must display a CIN consumers and traders for non- (though not ‘classified style’ attendance. Currently, costs can listings where there is no auction be awarded against the consumer a test drive... or buy now option.) However but not against the trader. In this requirement has never been addition, all decisions will now We realise not every person fits standard vehicle enforced for members of the be made public – not just those finance criteria. That’s why at Avanti Finance we base public selling, said Curran when which go against a trader. each application on the client’s individual profile. speaking on the Bill. The jurisdiction of the Now there’s an alternative to get more customers “I draw attention to the Tribunal has also been extended on the road with approved finance deals. submission that was made to to include the Contractual the Commerce Committee from Remedies Act. So take us for a test drive. Trade Me, explaining that the There have been a number of Contact Leyton Mercer current law meant that each changes to the requirements for Phone 021 706 215 or 0800 808 058 of the 175,000 motor vehicle reporting. Traders will no longer auctions that have been listed have to make an annual statutory www.avantifinance.co.nz on Trade Me in the last year declaration of their trading details would have had to include a in cases where those details consumer information notice. In have not changed; instead the reality, that was not enforced by requirement will be to confirm that the Commerce Commission, so their details have not changed at this amendment simply catches time of annual renewal.

www.autofile.co.nz | 7 news NZTA border inspection tender

Border inspection costs for will be looking at ways of reducing decontaminating the vehicles used imports are likely to rise, with the cost of entry certification to themselves. NZTA to appoint a new organisation offset any increased cost of the MAF will still have workers in to carry out the checks. border inspection, through a Japan at the sites, but their role Currently the inspection, streamlined and more efficient will be to assess that the process checking for structural damage entry certification process in the is effective. and other vehicle details, is carried coming years.” “We have a graduated audit out by MAF contractors at the same NZTA’s preference is that regime, it starts off fairly high and time as the biosecurity inspection. a single company will be is reduced over compliance. If the However changes to MAF’s offshore responsible for the border system is found to be effective the management of biosecurity risks inspection both in New Zealand audit regime is reduced, equally if means that MAF will no longer be and in Japan, says Knackstedt. biosecurity risk posed by used the system is found to be ineffective inspecting all vehicles in Japan, Preference will be given to an imports. Currently all used then it is escalated. We may be the source of almost all of New established company. imports from Japan are inspected physically inspecting anywhere Zealand’s used imports. It is also important that by MAF contracted workers in between 10 and 50 percent of the Without the efficiency of a there is no conflict of interest, Japan, but this is shifting to an vehicles, depending on what part of single inspector doing both the Knackstedt says, and that the equivalency system, where the the regime they’re on. MAF and NZTA check, it is likely appointed organisation has no biosecurity risk is managed by a Gwyn says opting out of border costs will increase. financial or professional interest private company. inspections was logical. “It was NZTA’s national media manager in importing or selling vehicles or MAF’s Group Leader for expedient for everybody, when we Andy Knackstedt says the new parts, is not involved in modifying Border Operations, Geoff Gwyn, were inspecting 100 percent of the service charge will be set by or repairing vehicles, and is says they’ve been working vehicles, to carry out the structural the appointed organisation. not involved in vehicle entry for quite some time with key inspections at the same time. But Nevertheless there are hopes that inspection and certification. industry players over in Japan on we don’t want to be in a position reducing compliance costs could The change comes as a result equivalency systems, whereby where we are sub-contracting work balance any rise, he says. “The NZTA of MAF’s management of the the supplier is responsible for outside of our core speciality.” Disputes Tribunal decisions show shift to consumers

Analysis of Motor Vehicle very similar situation they’re free 100% Disputes Tribunal rulings show to go another way. That makes 90% that there has been a shift towards it a very difficult forum to get finding in favour of purchasers. consistency out of.” 80% The Motor Trade Association’s “The difficulty is that there’s no 70% Dealer Services and Mediation clear defined parameters when it Manager Tony Everett agrees. comes to the CGA. There are within 60%

“Historically if you look back the Fair Trading Act, and if it’s some 50% over the past several years, it’s 100% representation issue it’s pretty clear 40% been closer to 60 – 40. Auckland 90% that the consumer will win. But is probably more like 70 – 30 and when you get into the CGA and the 30% Wellington is more like 45 – 55. In 80% interpretation of ‘reasonable’, that’s 20% terms of the forum Auckland is a 70% where it gets difficult.” tougher market.” With no clear guidelines, a 10% 60%

The annual reports from the degree of confusion is inevitable100% 0% Tribunals also show that some 50% says Everett. 05/06 06/07 07/08 08/09 09/10 90% Adjudicators seem more likely to “Some dealers perhaps 40% Dealer to Consumer win ration for Vehicle Disputes from 2005 - 2010 find in favour of consumers, while go further than they need 80% to, others find closer to 50 – 50. 30% because they don’t know where Consumer Dealer 70%

Everett believes it’s hard to 20% the ground sits, they don’t want get a clear pattern. “The difficulty the hassle and the time involved60% knowing whether that is right or all, unless they’ve had separate 10% is that the Tribunals don’t set in defending a case, and taking50% wrong. Equally the same applies to advice. So they’re in an even worse precedents. So if a Tribunal on 0% time off work to go to hearings. the consumer, in fact they’re even position to judge whether the 05/06 06/07 40% 07/08 08/09 09/10 one day decides to go a certain Sometimes it’s just easier to agree worse positioned, because they solution offered by the dealer is way, on another occasion with a or to make an offer, without30% ever really don’t know the industry at reasonable.”

20% 8 | www.autofile.co.nz 10%

0% 05/06 06/07 07/08 08/09 09/10 news Brazilian deal begins Holden’s export resurgence

Holden is resuming Commodore exports to Brazil after a two-year gap caused by the global financial crisis, and says a ramped-up export programme will help return the company to profitability. Holden’s exports to Brazil will start in a limited way with a batch of 600 special edition cars based Two-time F1 champion, Emerson Fittipaldi, highly rates the V6 Omega The Caprice PPV will be sold with a 6.0-litre V8; a V6 will follow in 2012 on the newly-launched VE Series II Commodore. great deal about the potential of bio- other parts of the world will help police car market with the Chevrolet The cars will be marketed as ethanol and the flex-fuel technology Holden climb back into the black Caprice PPV (police patrol vehicle) the Chevrolet Omega Fittipaldi needed to make our locally- during 2011, though he stresses and already has special Caprice in Brazil, named after Brazilian produced engines E85 compatible. Holden can make a profit in police cruisers under evaluation Formula 1 great, Emerson “Those lessons have allowed Australia alone. by several American police forces. Fittipaldi, who will help market the us to develop cars for local and Among other export Holden is General Motors’ world Omega in the sports/luxury sedan domestic markets capable of opportunities are recovering sales centre for rear-wheel drive car market segment. running on varying ethanol blends ground in the Middle East where development and developed the Fittipaldi won world ranging from E10 all the way to Holden markets the Caprice as a car jointly with Chevrolet. championships in 1972 with E85 as well as how to work with Chevrolet. Since the global financial Holden and Chevy see the Lotus (at the age of 25 he was fuel retailers to make bio-ethanol meltdown Caprice sales there have Caprice, with its long wheelbase, the youngest man to win the title available commercially.” dropped to 4000 to 5000; they used traditional rear-wheel drive and to that date) and in 1974 with Holden hopes the limited to be around 20,000. roomy rear cabin, as an ideal police McLaren. Fittipaldi also won the edition export order will lead to Holden is also targeting the US car for the US market. Indianapolis 500 in 1989 and greater volumes, targeting more 1993 and the IndyCar drivers’ than the 150 a month achieved championship in 1989. This by the VT-based Chevrolet Omega year, he’s celebrating the 40th between 1998 and 2008. Miles Toyota anniversary of his first Formula 1 However, reports say GM victory at Watkins Glen in the US. Brazil has ruled out imports of a Since retiring from racing he wider range of Australian-built SALES MANAGER – NEW VEHICLES has become a passionate advocate Commodores, saying there’s no Miles Toyota - Christchurch and an investor in ethanol market in Brazil for station wagons, production in Brazil. V8s-powered cars or large car- An outstanding opportunity to join one of New Zealand’s most successful motor vehicle dealerships. After testing the Omega in based utes. It has also ruled out the Australia, Fittipaldi says, “it’s a long-wheelbase Caprice, saying it’s Due to an internal transfer, we are looking for an accomplished Sales Management professional to take responsibility for the successful and profi table management of sedan with excellent performance. too big for Brazilian tastes. New Vehicle Sales within the City Branch of Miles Toyota, Christchurch. It’s this performance and handling Some Australian sources have Your key focus in this role will be to achieve sales objectives by effectively that makes it such a great car for expressed surprise that GM Brazil has planning, organising, co-ordinating and measuring activities within the New Vehicle people who really loving driving said it won’t be taking Australian- Department. Through your exceptional people, leadership and management skills, you will focus on continuing to foster and grow the exceptional customer service but who won’t give up the comfort built Cruze Hatchbacks because standards for which this dealership is recognised. Essential also will be your of a luxury car.” Holden won’t be building left-hand ability to develop potential market opportunities and to lead, coach and develop a successful team to achieve their full potential and individual goals. The cars for Brazil will be fitted drive versions of the GM world car. with Holden’s Australian-built 3.6 Devereux, says the Brazilian Key skills sought include: • Strong business acumen combined with a successful background in litre SIDI V6 engine which can run export programme is a step sales and sales management, ideally within the motor vehicle industry on E25 fuel, a blend of 25 percent in Holden’s recovery after the • The drive and initiative to lead the way forward in a challenging and dynamic marketplace ethanol/75 percent petrol. GM Brazil challenges of the financial crisis. • A proven background of achievement in a target and sales driven market is understood to have advance “We’re really pleased to…rebuild • Outstanding planning and organisational skills • Exceptional communication skills, both verbal and written orders for 200 Omega Fittipaldis targeted export programmes which • Experience in retail sales, stock and inventory management which will be delivered in November. add value to Holden’s domestic This is a wonderful opportunity for someone seeking professional challenges and Holden managing director, Mike business. Holden’s Chevrolet Omega genuine job satisfaction to join a successful and prestigious company in a key Devereux, says Holden has learned a programme for Brazil shows that management position. lot from GM Brazil and the Brazilian niche export opportunities are For further information on this role, please send your CV to: market where ethanol accounts for beginning to emerge as we recover Win Prentice, P O Box 27-271 Shirley, Christchurch or email [email protected]. Initial enquiries welcome on (03) 348 0881 or 021 383 042. 45 percent of vehicle fuel. from the challenges of the global All enquiries treated in the utmost confi dence. “Our work with Chevrolet Brazil financial crisis.” Applications close Thursday, 30 September 2010. over the past decade has taught us a He says exports to Brazil and

www.autofile.co.nz | 9 news

VEHICLES WANTED News in brief BUYING NOW iPod “Zombie trance” deaths Rising numbers of pedestrian deaths in New South Wales and around the world are being blamed on iPods and other listening devices. Distracted pedestrians in a ‘zombie trance’ will step out into traffic miles motor group without checking for approaching vehicles, say officials. The problem was highlighted by the death of a 46-year-old woman in Sydney, who was reportedly wearing headphones when she was struck and killed by an Toyota Mazda Honda ambulance, with speculation that the headphones preventing her from Nissan Lexus VW hearing the siren. While total road deaths are decreasing, pedestrian fatalities are on the We are always looking to purchase rise, says Harold Scruby of the Pedestrian Council of Australia. The Pedestrian Council is mounting a ‘’lambs to the slaughter - wait for NZ NEW CARS AND COMMERCIALS the green’’ campaign to educate the public, featuring a group of pedestrians PAUL CURIN 0274 333 303 [email protected] wearing sheep heads and listening to mobiles and iPods, which has appeared in newspapers and a billboard.

SUV sales boost Oz market news SUVs were the strongest sellers in the Australian new car market during August, official data released by the Australian Federal Chamber of BUYING NOW Automotive Industries (FCAI) shows. Australians bought 82,122 new passenger cars, SUVs and commercial vehicles in August, a 12.1 percent rise on the same month in 2009. BRETT HARRIS 029 293 1232 FARmER AUTOvIllAGE www.farmerautovillage.co.nz SUV sales rose by 32.5 percent, followed by light commercials (up 22.6) and passenger cars (up 3.5 percent). Karl Briggs 0274 721 551 “Sales to private buyers remain solid (up 20.9 percent) and there has Vehicles [email protected] beenNews a lift in new car purchases bybriefs government fleets (up 21.7 percent),” says www.inghammotorgroup.co.nz Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ. FCAI chief executive, Andrew McKellar. Volvo“There’s deal no evidence – done in the August data to suggest customers were It’s been on-again, off-again, and this time it looks as if the AlwBuyingAys Buying Any Vehicle oVnower $500 considered distracted from their normal buying habits due to the election and the currentFord-Geely political deal uncertainty.”for the buy-out of Volvo is sign, sealed and ContaCt our staff today delivered. Geely has bought the Swedish brand for $US1.8 Adam Winter ph: 021 635 352 e: [email protected] Kane Owen ph: 021 356 300 e: [email protected] Toyota was the top selling brand with 16,633 sales; followed by Holden billion ($NZ2.5b), China’s biggest overseas auto purchase. Ford AucklAnd Vehicle consultAnts withwill continue(11,146) andto supply Ford (8212).powertrains, stamping and other parts Paul Curin to Year-to-date,Volvo after the 695,666 sale. vehicles have been sold, a15.2 percent increase on 2009. EUROPEAN CARS0274 WANTED 333 303 2002 [email protected] Chrysler reopens yards Chrysler Group, reversing an earlier stance, says it will offer to Usedreinstate cars 50 closed drive US dealerships British within recovery the next few days. contact: Reg Ollay 0274 945 391 We are always looking to purchase UsedLetters car of sales intent are will playing be sent a to crucial 50 of therole estimated in the British 400 rejectedmotor industry’s NZ N 09eW 3788120 cars or a 09N 3788121d commercials recovery,dealerships says that major have second-handapplied to get theircar marketer, franchises British back through Car Auctions (BCA). email: [email protected] AUTO IMPORTERS LTD arbitration,BCA’s 2010 Chrysler Used saysCar Marketin a statement. Report Theyshows “are the in motor locations industry began tothat climb offer out customer of recession service in bene 2009 tsas anda result will have of improving limited adverse used car values, impact on the dealers within our current network,” says Chrysler. despite sales volume being the lowest in 10 years. The National Automobile Dealers Association says “it is a move in theAlthough right direction”. volumes fell in both the new and used markets, values held up well. Used car values hit new record levels, exceeding £34 billion for the first time as prices rose sharply. Average used car selling prices recovered stronglyToyota in 2009,supplies rising to Mazda £5422. Wanted 2003 onwards HSV and Commodore, MazdaIn both Motor 2008 Corp and will 2009, introduce the used a midsize car market hybrid value vehicle has bybeen significantly NZ new Suzuki, Nissan and Mazda product. 2013 based on core components supplied by Toyota Motor larger than the new car market’s. Call Daryn Pennington 067594586 direct, [email protected] or 0274 496499 Corp, the Nikkei Business Daily reports. The two automakers reached“The UK an usedagreement car industry under haswhich got Toyota better will and supply better the at meeting the needsToyota of Hybrid motorists” System says II (THSBCA. II), “It’s currently this ability used to in provide the third- a broad range of BUYING NOW productsgeneration at everyPrius. priceThe deal point, will withenable a good Mazda choice to tap of the ‘value growing adds’ such as TO ADVERTISE HERE CONTACT: warrantiesdemand for and hybrids servicing sooner packages, than otherwise that we possible.believe sustained For Toyota, this crucial revenuethe arrangement stream in will 2009.” help lower related production costs BRETT HARRIS 029 293 1232 through economies of scale. www.farmerautovillage.co.nzPh 0508 288 863FAR ormER 021 AUTO 455vIll 775AGE Dealers continued to make the most of used car demand, selling 3.53 advertising@autofi le.co.nz million cars last year, but the private-to-private sector continued to falter, withFiat sales wants falling tomore 2.2 million. Phil Wills 021 877 422 Fiat CEO Sergio Marchionne says the Italian automaker will [email protected] increase its stake in Chrysler to 35% within two years. The rst 5% www.inghammotorgroup.co.nz 10 | www.autofile.co.nz increment could come as early as this year after Chrysler begins Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ. making engines for the Fiat 500 in Dundee, west of Monroe. The subsequent two purchases will depend on increasing Chrysler’s distribution outside the US and assembling a new fuel-ef cient car in the US, he says.

Driver magazine sold Fairfax Magazines has purchased Driver magazine and will merge it with New Zealand Autocar from the To adverTise May issue. John Baker, of former Driver publisher here conTacT: Tangible Media, says: “The publishing landscape has changed and it became 09 361 2346 clear to us that the market 021 927 941 in New Zealand was no longer able to support [email protected] two magazines devoted to new cars.”

8 | www.auto le.co.nz new cars Falcon GT gets more power and sharper soundtrack

Ford’s Falcon GT gets its 32-valve V8s meet Euro 4 emission most powerful engine yet when standards, are 47kg lighter than supercharged variants of the FPV- the outgoing 5.4-litre Boss 315kW developed super sedan hit the engine and are said to offer better- Australian market in October and balanced handling. New Zealand a month later. FPV hand-assembles the FPV (Ford Performance supercharged, all-aluminium V8 supercharger using Vehicles) is fitting new 5.0-litre from components imported from Eaton TVS technology. motors to the GT (335kW, a 20kW America. Australian outfit Harrop FPV boss, Bryan lift over the previous 5.4-litre Boss Engineering developed the Mears, is pushing the new V8’s FPV began developing the V8) and GS (315kW). Australian-ness. “Although the engines in 2007, initially with a Prodrive developed the basis of the engine is imported, 5.4-litre XR8 motor fitted with engines in Australia in a all the components utilised in the a supercharger and custom $Au40,000 programme, using the supercharged configuration are manifolds to sort out the Mustang’s Coyote V8 as a starting locally sourced, and the engines cooling system and an initial point. Peak torque for the GT are completely hand-made…in engine calibration strategy. The engine is 570Nm; the GS motor Melbourne.” He says “enormous programme then moved on to develops 545Nm. effort” was putting into making sure prototypes based on the Coyote The double overhead camshaft, the engine sounds right. Mustang engine. Hatchback for Cruze range Bongo upgraded General Motors will debut a Adding a hatchback to the line five-door hatchback version of its gives GM the chance to build on the Cruze world car at the Paris Motor Cruze’s position as an international Show on September 30, and start best-seller. The sedan is exceeding Mazda has selling it in 2011. sales forcasts in Denmark, Germany, started selling in GM sells the Cruze in New Switzerland, Italy, Spain, Portugal and Japan revised Zealand under the Holden Britain and has found just on 90,000 versions of its nameplate and the rest of the world buyers in China so far this year. Bongo van and as a Chevrolet. Like the existing sedan, the truck, powered Holden’s Port Melbourne design hatchback will use GM’s body- by more powerful, cleaner and expected in its first month on studio designed the hatchback frame integral system (BFI) which more economical 1.8-litre DOHC the Japanese market. Mazda and built development prototypes. gives high rigidity and provides the four-cylinder motors. took 7240 orders against a sales Holden will start building the basis for good stability and solidity. The new motor develops 75kW target of 1800. production version in late 2011. The Cruze hatchback’s luggage and 147Nm, and both van and Eighty percent of the orders Holden design chief, Richard capacity is close to 400 litres (the truck offer roughly 10 percent were for models with the i-stop Ferlazzo, says the Australian studio sedan has 400 litres) and it has better fuel economy. idling stop system which is spent more than 12 months working 60/40 split rear seating. Two-wheel drive models standard on front-wheel drive with GM designers worldwide to GM starts selling the Cruze meet Japan’s 2010 fuel economy 20E and 20S models. develop the hatchback. hatchback in Europe from standard (4WDs aren’t subject to The front-drive 20S made up “Our brief was to create an mid‑2011. the standard). 55 percent of total orders, and alternative body style to the Other changes include the most popular colours were traditional sedan that retained a large centre console box, Aluminium Metallic, Clear Water the same dynamic proportions. a passenger side airbag, Blue Metallic, and Crystal White We’re very proud of the result electrically-wound windows Pearl Mica. which will be tailored further and an electrically-operated Eighty-five percent of buyers for the Australian market passenger-side door mirror. chose power sliding doors, and and given an appearance Meanwhile, Mazda says it sold 45 percent the rear view camera. consistent with the rest of the four-times more of its all-new Most buyers were in their 30s or Holden portfolio next year.” seven-seater Premacy MPV than 40s and had young children.

www.autofile.co.nz | 11 news continued from page 1 Earthquake in Christchurch Autofile talked withA listair temporary work back to workers lots of customers looking at cars happened at 4 in the afternoon in Hazeldine on the Saturday who they’ve had to let go over the on the yard as we speak, so they’re the city like that we would have morning to hear his report of the past few months. obviously not too worried about it!” had loss of life, but it happened earthquake, expecting the worse. If you look at that bad at 4 in the morning when no one “The only piece of damage that hailstorm that hit Melbourne Autofile spoke with Wayne at was in the vicinity of the areas Cockram Nissan sustained, is a at the end of March, I believe Freedom Auto Sales on the that had collapsed. It’s good luck glass picture frame that fell off the there are still New Zealand panel Saturday morning after the quake. in that sense, but bad luck that wall and broke. The picture frame beaters over there, repairing cars. “We’re out in the country so we’re it’s happened.” contained the ‘What to do in the So while yes this is a bad thing, okay. There’s a little bit of damage case of an emergency.’ I kid you not, every cloud has a silver lining. to the building, but minor. We had Mark Wheeler, Manager at that was the only thing that broke. Right now the authorities are two cars on hoists, and even they’ve Continental Prestige, was Certainly there are no vehicles on the radio now, saying that as a sustained themselves. Although the the one dealer who reported damaged on either of our yards. precautionary move you should holder between the hoist and under damage to his yard. It looks as if any new modern really stay at home, and you should the car of one has fallen away, the “We had a partial collapse of a building has sustained this without not go out in you car unless you car hasn’t gone down. So we’re fine, brick wall that backs on to our yard, any difficulty at all, but older really need to. Now that message the Lone Star restaurant. Some building wore the brunt of it. obviously isn’t getting through to of the bricks have gone through In some places there will be the people driving past right now. the rear windscreen of a car but damage, but there certainly isn’t Honestly I don’t think I’ve ever seen nothing apart from that really. any that is apparent to us here so many cars on Moorhouse Ave, The roof’s also a wee bit on Moorhouse Ave. I’m looking it’s almost ridiculous. It’s like when damaged, but you can’t see it. I across the road at the old railway they say there’s a tsunami alert and went up on the roof today with the “We were lucky, very very lucky given the fact that we have a large glass-domed showroom. The potential was there for some huge disaster but we’re all okay.” Donna Sylvester, Dealer Principal, Sylvester Motors station, that’s a four story brick people want to drive to the beach we’re luckier than a lot. engineers, and luckily most of the building, there’s no damage to to look at it. “We’re right up by the Northern bricks fell inward. Their building it. Likewise with the old Smiths As it happens we have the Motorway and one artery to the kind of imploded as well, but a few building which is also brick, there’s official opening of our new Cockram motorway is blocked off and there did make their way down on to our no damage at all. And with 70 or Kia showroom today. The weather is are three or four humungous showroom roof and they’ve mashed 80 used cars on the yard, there’s absolutely brilliant, it’s a little bit of cracks. But there are people in that up a bit, so we’re hopeful it’s no damage to those. a chilly morning, but it’s a blue sky Kaiapoi which is just up the road, not going to rain tonight. In some respects this is good with no wind and lots of sunshine. and some of them have raw sewer “The building adjacent hasn’t news for building companies We’re at work, and we’ve got running through their houses, and collapsed, just part of the façade suffering from the recession. I’ve three sales staff. The business mud that’s come up from under has come apart. There’s probably heard through one of the salesmen manager came in and I said go the ground, it’s just devastating up a mini-skip of bricks up there still, that the construction company home, put on your suit and come there. The silty ground has pushed there’s quite a lot of bricks still Fulton Hogan have been on the back to work, cause we’re going the water table right through in the sitting up there, but they’re in the phone this morning offering to sell cars today. We’ve got two likes of Kaiapoi, where the rivers process of clearing them away now, surround the whole place, and and hopefully tomorrow they’ll be push the silty waters right through.” able to weather proof us, and we’ll “A lot of people who have got get a new section of the roof put concrete and brick chimneys are on in the next few days. flat out at this moment pulling “We’re right on the fringe of the them all down. They’re all helping CBD, and it seems it’s just the older each other do that. But the older buildings that are damaged, the old buildings which weren’t built to brick buildings mainly. If you were today’s standards, that’s where to drive around the suburbs you’d the devastation will be. But there see the odd chimney that’s fallen doesn’t seem to be loss of life, so down, a bit of a hole in the roof possessions and things like that where a chimney’s gone through, are no problem are they. If it had the odd fence that’s fallen down,

12 | www.autofile.co.nz news

but you don’t really see any houses that are substantially damaged, so if you weren’t paying any attention you wouldn’t even know there had been an earthquake. “But then just randomly there’s a definite crack in the road and you have to slow to go over it. In Illam where my parents live there was a lamppost down. So some parts of Christchurch are worse than others, but the CBD is probably where the main lot of old buildings are and so the most damage. “Saying that it’s kind of business as usual. Most businesses “It’s quarter to five in the they will need to be demolished.” around the coastal areas, because are up and running, apart the ones afternoon, and we’ve just While newspapers delight in they’re all on sand and the water right in the CBD. I think power experienced some further printing photos of cars destroyed table’s very high. is on in 90% of town, and I think aftershocks, and everyone’s very by rubble, Sylvester says these “Out where we are, close to water’s back on most places. Some on edge at the moment. But I’d photos aren’t isolated incidents, but where it happened, you’re on an old of the supermarkets are open, describe the mood as one of strong that many vehicles will have been river bed and there’s clay and top petrol stations are opened, so if camaraderie, whether it’s among destroyed or damaged in the quake. soil, so moves but it doesn’t break you’re determined enough you’ll colleagues or among competitive “There has been a large impact your house to bits. Our neighbours get what you need. businesses. Everyone’s still on edge, to very many vehicles in the lost low walls with brick and concrete “Don’t get me wrong, it’s but they’re talking it through. Christchurch area, that’s for sure. falling off, but compared to what been pretty ordinary, I wouldn’t People are stretching out hands There are also vehicles in driveways happened in the city and in the city like to go through it again. For through-out the region., and we’ve where the chimneys have fallen suburbs, we got off very lightly.” me it’s not so bad because my supplied trucks and manpower to and collapsed the vehicles. There “It is was hard to get any house is standing, so I got up some people who had their shops will be some large pressure on information for a while, we didn’t this morning, had breakfast with demolished, in order for them to some insurance companies for have power for a couple of days, my wife, child, had a shower and move stock to safer premises.” motor vehicle claims, but a lot of but we’ve had that back on, and shave and then came to work. So She says the damage is them will be written off, so you just once the internet came back on it I guess it’s easy to become a little concentrated in certain areas. hope they’ve got gap insurance.” was pretty much back to normal.” blasé about it, but if you go and Davys says that while they have a close look you’ll see that Tony Davys at Overland 4WD haven’t been hugely affected by there’s a whole lot of damage, Rentals says his business the quake, he’s worred about the mostly to the older buildings.” premise is fine, but the home’s effects it will have on his business. got some damage. “I think it will put people off Donna Sylvester, Dealer Principal “We’ve got a concrete block coming, and for us hiring vehicles at Sylvester Motors, says she’s house so we’ve got a few cracks to skiers. I’ve had some phone calls incredibly relieved. and things like that, it should be from Australia with people saying “We were lucky, very very lucky “I’ll drive from my home and see fine it doesn’t look that bad really. I’ve heard you can’t drive on the given the fact that we have a large maybe the odd chimney, but you We’re doing alright, there’s a lot of roads and that kind of thing. So glass-domed showroom. The further into the CBD area and you people worse of that’s for sure. they’re getting conflicting reports potential was there for some huge begin to see more of the disaster. “We’re very close to the over there so I think it will definitely disaster but we’re all okay. Sydeneham is the neighbouring epicentre in Darfield, but I think it put people off from coming skiing Speaking with her on the suburb to where we are, and it’s depends on what’s under you, the for the end of the season. Which is Monday after the quake, she home to a lot of historic buildings, ground you’re built on. That’s why a bit of a sod really, but you can’t described the mood in Christchurch. and it’s very sad to see them, and there’s lots of damage in town and do much about it.”

www.autofile.co.nz | 13 disputes

Warranty assessment leaves The Case: Assessment by a mechanical it for trader to foot the bill warranty company says shock absorber failure occurred as a result of an impact Background report which concluded, report: that it is very unusual The Decision: On 23 October 2009 the purchaser “Left front shock has sheared for shock absorbers to break Mechanical work showed that bought a 2001 Subaru Impreza main hydraulic shaft approx 50mm at the spear end of the shaft the top strut mount bearing was seized up and had probably WRX from the trader for $19,345. from top end support. Very unusual in the absence of a heavy caused the shock absorber The purchaser sought to recover to fail on this shaft in this manner. impact force. However the failure, the Tribunal ruled $1,463 from the trader for a front This would require a horizontal force Tribunal had the advantage of left shock absorber and top strut as in an accident or large pot hole inspecting the shock absorber At: the Motor Vehicle Disputes mount bearing he had replaced. to cause enough force to shear a brought to the hearing by the Tribunal, Auckland. The trader maintained that the vertical shaft.” purchaser, which was visually failure of the shock absorber was The trader relied on the report perfectly straight. The spear shaft view that an impact had caused not a normal mechanical failure to refuse to meet the cost of was missing from the body of the the failure the Tribunal does not but occurred as the result of replacing the left front shock shock absorber, which had broken consider this to have been the impact damage. absorber. The purchaser had a off due to the seized bearing. cause of the failure. mechanic replace the left front The Tribunal thinks the force on The Tribunal is satisfied on The Evidence shock absorber with another after the shock absorber shaft would the evidence given by both the The purchaser bought the vehicle market shock absorber, costing have been at its greatest when purchaser and the trader that in from the trader for $19,345 on 23 $1,162.51. the steering wheel was turned by March following the failure of the October 2009, with mechanical In the process of the work the the purchaser in a near stationary shock absorber the purchaser breakdown cover for $1,695 and mechanic discovered that the top vehicle which explains why the did request the trader to remedy an alarm for $595. The vehicle strut mount bearing was seized shock absorber collapsed when the failure and that the trader had 109,520 kilometres on its up, and he believed this may have the purchaser was reversing out of refused to do so for reasons odometer at the date of sale. It was contributed to the damage of top a car park. which at that time appeared to fitted with aftermarket adjustable of the strut spear. The mechanic The purchaser gave evidence it to be reasonable. The Tribunal coil shock absorbers on its front told the Tribunal that, with that he had not had any heavy considered the $1,404.39 paid suspension system, a modification hindsight, the seized bearing was impact in the vehicle, had not by the purchaser in replacing the which was certified on the vehicle’s a more likely cause for the failure driven over potholes or kerbs or shock absorber and replacing the low volume certification plate. than impact damage. He said that been involved in any accident seized top mount bearing to be The purchaser said that after he had notified the mechanical in the vehicle. The purchaser’s reasonable, and therefore ordered two months he heard a noise when warranty of his finding but had not mother gave evidence that the trader to pay the purchaser he turned the steering wheel full heard from them. she was in the vehicle at the that amount. lock. He had this checked out but The trader said that the airport when the shock absorber no fault was found. On 11 March purchaser had approached him collapsed. The Tribunal found the Bruce Dell’s comment 2010 the left front suspension in March. He says that the reason purchaser and his mother to be The dealer argued that the strut suddenly collapsed when the the warrant company would not credible witnesses. damage was caused as the result purchaser was reversing the vehicle pay the purchaser’s repair costs of impact and claimed misuse by out of a car park at Auckland was because they considered The Tribunal’s decision the buyer. Same old arguments Airport. The purchaser had the breakage was due to a heavy The Tribunal considered that the about acceptable quality under travelled 11,604kms in the vehicle impact. He says that the purchaser after market shock absorbers The Consumer Guarantees Act. at that time. had also owned the vehicle for on the front suspension of the Seemingly the argument about The purchaser had the vehicle 5 months when the breakage vehicle were not as durable as the cause of the damage was not towed to his home and the occurred and had travelled a reasonable purchaser paying accepted by the Tribunal and the following day approached the 11,600kms during that period. The $19,345 for a vehicle of this type, dealer was required to meet the trader. The trader arranged for the trader had made the decision on age, and mileage would expect. cost. It seems fairly clear cut but it mechanical warranty protection that basis. Therefore the vehicle was not of probably came down to whether Bruce Dell Law – “problem solver” company to be advised and the The Tribunal’s expert Assessor acceptable quality at the time in fact the damage was as a result vehicle was towed to be examined agreed with the general point of sale. Whilstautofi itle appreciatesare delighted why to have ofBruce mechanical as part failureof the orAutofi impact le team advising our readers by their assessor, who wrote a brief made in the warranty assessor’s the traderon maythe lessonshave formed to be thelearned fromdamage. past Motor Vehicle Disputes Tribunal cases If you require legal advice give Bruce a call on 09 570 5036

Bruce Dell Law – “problem solver” . Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on past Motor bd Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036 law 14 | www.autofile.co.nz

. Problem bd solver law disputes

Sale by online auction: The Case: Consumer wished to reject a CGA doesn’t apply, SOGA does vehicle supplied by online auction. The Decision: vehicle and it blew smoke on the the Tribunal considered that The Tribunal ruled that the vehicle Background was not of merchantable quality On 6 October 2009 the purchaser way to a stop for fuel and fast s.16(b) of the Sale of Goods bought a 2001 Mitsubishi Pajero food. About 15 minutes later Act (1908), implied condition At: the Motor Vehicle Disputes by internet auction from the trader the purchaser says she got in the of merchantable quality, was Tribunal, Auckland. for $10,200 sight unseen. The vehicle to start it with the intention applicable to the facts of the purchaser says that the vehicle of driving it back to her home. application. could not be restarted when her When she tried to start the vehicle The Tribunal did not consider husband stopped the vehicle for it blew a cloud of smoke from the that the trader had negated fuel on the day she took delivery exhaust and the vehicle’s engine s.16(b) of the SOGA by having its The purchaser’s application for of it and after only about 20 would not start. The vehicle was staff stamp the sales invoice and rejection was therefore dismissed. kilometres of use. The purchaser towed back to the trader. the CIN, the reason being that the has purported to reject the vehicle There is a dispute as to what stamp – which clearly purports to Bruce Dell’s comment and seeks a refund of her purchase happened next. The trader says exclude s.16(b) of the SOGA – was Virtually a day after the purchase price and consequential damages. that the purchaser agreed to pay affixed after the contract for the and after 20km use, the purchaser The trader says that the vehicle to have the vehicle repaired but sale and purchase of the vehicle argued that the car could not was supplied by auction and the purchaser says he did not made between the purchaser and restart. The purchaser tried to reject that accordingly the remedy of agree to pay to have the vehicle the trader. The Tribunal accepted the vehicle and obtain a refund and rejection under the Consumer repaired. What is clear is that on the purchaser’s evidence that consequential damages. Guarantees Act is not available to 17 November the purchaser sent the vehicle was not able to be The dealer argued that the car the purchaser. The trader claimed the trader a letter rejecting the restarted on the day on which it was sold at auction and remedies that the purchaser’s husband vehicle and requesting a refund was supplied to the purchaser, were not available under The agreed to pay one half of the cost of his purchase price because and therefore considered that the Consumer Guarantees Act. There of repairing the vehicle. The trader the trader had taken six weeks to vehicle was not of merchantable was a claim that the purchaser has now repaired the vehicle and is repair the vehicle. quality at the time it was sold. agreed to pay half of the cost of willing, without cost, to release it to On 6 December the trader sent The remedies available to repair. the purchaser. the purchaser an email saying the purchaser are to seek an Ultimately, the dealer repaired he was repairing the vehicle, and abatement of the price, or to the vehicle and without cost agreed The evidence would have it fixed by the end of maintain an action for damages. to release it to the purchaser. In October 2009 the trader the week. In the email the trader The remedies do not extend There were arguments as to advertised the vehicle for sale on claimed that the cost of parts had to reimbursing the purchaser whether the purchase was within an online auction site. Neither the come to $1,990, and that he was with her consequential losses The Consumer Guarantees Act; purchaser nor the trader was able willing to go halves on the cost (interest costs) or permitting her were there implied conditions as to provide the Tribunal with a copy with the purchaser ($995), without to reject the vehicle. The Tribunal to quality and fitness under The of the trader’s advertisement. The costing the labour. The purchaser considered the purchaser’s loss Sale of Goods Act excluded; and parties agree however that the replied by email on 7 December to be the difference between the did the vehicle comply under The purchaser was the highest bidder rejecting the trader’s proposal. value of the vehicle at the time of Sale and Goods Act. If so, what are for the vehicle at $10,200 when The vehicle has remained with the delivery of $9,000 and the value the remedies? the auction closed on 6 October trader ever since. the vehicle would have had if it Good news for the trader is that 2009. The purchaser collected the had answered to the warranty; the cancellation was not accepted. vehicle from the trader’s premises The Tribunal’s decision namely, the price the purchaser The Tribunal decided that the on 12 October. The invoice and The Tribunal considered that paid of $10,200. This difference purchaser’s loss was the difference CIN both bore a stamp which read: since the vehicle was supplied was the cost of the work which between the value of the vehicle at “This vehicle has been purchased by by auction the provisions of the the trader gave evidence it had the time of delivery and the price way of a no reserve auction and as is Consumer Guarantee Act did spent in repairing the vehicle. The paid which was $1,200.00. The case where is with no warranty expressed not apply, and therefore the Tribunal expected the purchaser resolved anyway on the basis that or implied whatsoever.” purchaser had no legal basis to wouldcollect the vehicle from the car was available for uplifting and The purchaser started the reject the vehicle. Nevertheless the trader without further delay. had been repaired by the dealer.

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Around the country Total New Cars 4720 2009: 4417  6.86% Car sales - August 2010 Total Used Cars 7530 2009: 5874  28.19%

Whangarei NEW: 108 2009: 80  35.00% Used: 122 2009: 107  14.02% Thames NEW: 50 2009: 26  92.31%  Auckland Used: 37 2009: 28 32.14% NEW: 2094 2009: 1951  7.33% Used: 3718 2009: 2815  32.08% Tauranga NEW: 184 2009: 193  4.66% Used: 280 2009: 219  27.85% Hamilton NEW: 320 2009: 268  19.40% Rotorua Used: 457 2009: 376  21.54% NEW: 38 2009: 35  8.57% Used: 76 2009: 69  10.14% New Plymouth NEW: 91 2009: 82  10.98% Used: 129 2009: 108  19.44% Gisborne  Wanganui NEW: 27 2009: 25 8.00%  NEW: 39 2009: 55  29.09% Used: 53 2009: 36 47.22% Used: 55 2009: 39  41.03% Napier NEW: 124 2009: 153  18.95% Palmerston North Used: 166 2009: 132  25.76% NEW: 159 2009: 185  14.05% Used: 169 2009: 134  26.12% Masterton NEW: 23 2009: 23  0% Nelson Used: 47 2009: 47  0% NEW: 55 2009: 50  10.00%  Used: 93 2009: 106 12.26% Wellington NEW: 536 2009: 411  30.41% Westport Used: 690 2009: 517  33.46% NEW: 4 2009: 2  100.00%  Used: 8 2009: 8 0% Blenheim NEW: 53 2009: 39  35.90% Greymouth Used: 28 2009: 30  6.67% NEW: 14 2009: 7  100.00% Used: 22 2009: 25  12.00% Christchurch NEW: 571 2009: 585  2.39% Used: 962 2009: 735  30.88%

Timaru NEW: 28 2009: 34  17.65% Used: 77 2009: 54  42.59%

Oamaru NEW: 16 2009: 4  300.00% Used: 24 2009: 20  20.00%

Dunedin NEW: 121 2009: 141  14.18% Used: 227 2009: 189  20.11%

Invercargill NEW: 65 2009: 68  4.41% Used: 90 2009: 80  12.50%

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16 | www.autofile.co.nz Tristan V1 Loading Osaka 29 Aug, Nagoya 30 Aug, Yokohama 31 Aug arriVing Brisbane 19 Sept, Auckland 24 Sept, Wellington 26 Sept, Lyttelton 27 Sept

spring sky V1 Loading Osaka 14 Sept, Nagoya 16 Sept, Yokohama 17 Sept arriVing Brisbane 30 Sept, Auckland 5 Oct, Wellington 7 Oct, Lyttelton 8 Oct

Madame Butterfl y V3 Loading Osaka 28 Sept, Nagoya 29 Sept, Yokohama 30 Sept arriVing Brisbane 19 Oct, Auckland 24 Oct, Wellington 26 Oct, Lyttelton 27 Oct industry statistics

New Passenger Vehicle Sales by Make August 2010

MAKE Aug ‘10 Market Share MAKE Aug ‘09 TOYOTA 686 14.53% TOYOTA 753 New vehicle mar ket back on track FORD 516 10.93% FORD 537 The new vehicle market is back ahead of August 2009. The MIA’s MAZDA 480 10.17% HOLDEN 510 on track after a tepid July, aided CEO Perry Kerr however cautioned HOLDEN 454 9.62% MAZDA 359 by strong commercial sales. Total not to read too much into this HYUNDAI 395 8.37% HYUNDAI 328 industry sales are now up more figure, noting that registrations in SUZUKI 349 7.39% SUZUKI 269 than 17% on August 2009. August 2009 (1,076) was one of MITSUBISHI 278 5.89% NISSAN 231 Passenger car registrations the lowest recorded. Year to date HONDA 232 4.92% HONDA 225 were just under 7% higher than commercial registrations are 16% the same month in 2009 and year ahead of 2009. NISSAN 225 4.77% MITSUBISHI 187 to date tracking a very healthy Toyota’s General Manager, Sales VOLKSWAGEN 191 4.05% KIA 184 13.7% ahead of 2009. In the month and Marketing Steve Prangnell, SUBARU 153 3.24% SUBARU 143 commercial registrations were the says it’s a good result, especially KIA 143 3.03% VOLKSWAGEN 132 stand out being a massive 60% after a slow July. AUDI 122 2.58% AUDI 97 BMW 102 2.16% BMW 93 New Passenger Vehicle Sales by Model - top 30 Aug 2010 MERCEDES-BENZ 65 1.38% PEUGEOT 69 MAKE MODEL Aug ‘10 MAKE MODEL Aug ‘09 PEUGEOT 56 1.19% MERCEDES-BENZ 67 Toyota COROLLA 224 Holden 311 DODGE 32 0.68% MINI 34 Suzuki SWIFT 208 Toyota COROLLA 297 LEXUS 32 0.68% LEXUS 33 Mazda MAZDA6 177 Ford MONDEO 210 SKODA 31 0.66% JEEP 20 Ford FALCON 163 Suzuki SWIFT 168 LAND ROVER 24 CITROEN 20 Mazda MAZDA3 159 Mazda MAZDA3 150 DAIHATSU 22 DODGE 18 Holden COMMODORE 148 Ford FALCON 132 JEEP 22 SKODA 16 Toyota CAMRY 132 Toyota RAV4 118 PORSCHE 21 LAND ROVER 11 Ford FIESTA 111 Mazda MAZDA6 115 CITROEN 11 JAGUAR 11 Volkswagen GOLF 100 Hyundai I30 100 MINI 11 FIAT 11 Ford MONDEO 99 Mitsubishi OUTLANDER 98 SSANGYONG 11 DAIHATSU 9 Hyundai I30 99 Toyota YARIS 93 GEELY 10 VOLVO 8 Holden CRUZE 98 Toyota PRIUS 92 VOLVO 8 CHRYSLER 8 Holden CAPTIVA 92 Ford FOCUS 91 ALFA ROMEO 7 ALFA ROMEO 7 Hyundai IX35 90 Mazda MAZDA2 78 GREAT WALL 6 PORSCHE 5 Hyundai SANTA FE 90 Hyundai SANTA FE 76 Mitsubishi OUTLANDER 89 Honda JAZZ 73 JAGUAR 6 BENTLEY 4 Toyota YARIS 86 Kia RIO 69 CHRYSLER 5 PROTON 3 Mazda MAZDA2 84 Ford FIESTA 68 CADILLAC 4 MASERATI 3 Ford FOCUS 79 Toyota CAMRY 67 FIAT 4 SSANGYONG 2 Honda JAZZ 78 Honda ACCORD 61 RENAULT 3 RENAULT 2 Toyota RAV4 74 ASTON MARTIN 1 HUMMER 2 Mitsubishi LANCER 65 FERRARI 1 FACTORY BUILT 2 Nissan QASHQAI 65 MASERATI 1 SMART 1 Ford TERRITORY 61 SAAB 1 Mazda CX-7 59 CADILLAC 1 Hyundai GETZ 58 ASTON MARTIN 1 Toyota HIGHLANDER 53 Nissan TIIDA 49 Mitsubishi ASX 47 TOTAL 4720 TOTAL 4417 Subaru OUTBACK 46

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247 to 223. We dropped off the rental companies have changed back of Fieldays because we had their seasonality in terms of the New vehicle mar ket back on track no stock, Navarra outsold Hilux months in which they purchase in July for the first time in a while, vehicles. They’ve bought SUVs “July was a very tough month May-June period it lifted up to 84, but we had no stock left because forward to account for the ski for everyone in retail, coming off then it dropped to 82, and now it’s we sold it all in the May-June season, and then the passenger the back of some quite spectacular running at about 80, so everyone’s period, we did something like 800 cars are pushed out a little bit Fieldays retail activity. We were forecasting around the 79-81 Hilux’s in two months. further into the fourth quarter. So I looking at our forecast saying that thousand mark. “We did hardly any rentals, out think Ford, and Holden and Mazda if that May-June activity continues “We had a strong commercial of our total of 1,135, we only did will be doing rentals in Q4 the we’re seriously short of stock, month, we did 415, which is more 54 rentals. All of the big corporate same as us.” the Seasonally Adjusted Annual than a 50 percent increase on Rate (SAAR) has came back quite August 2009, so our commercials New Commercial Vehicle Sales by Make August 2010 significantly, and is running at are up quite well. We had another about 80,000 units for the year. good month for Hilux, believe MAKE Aug ‘10 Market Share MAKE Aug ‘09 It’s been quite volatile, in the it or not, Hilux outsold Corolla TOYOTA 418 24.3% TOYOTA 265 FORD 274 16.0% MITSUBISHI 158 New Passenger Registrations NISSAN 242 14.1% FORD 155 2006 2007 2008 2009 2010 HOLDEN 126 7.3% NISSAN 127 9000 MAZDA 124 7.2% MAZDA 75 MERCEDES-BENZ 115 6.7% HOLDEN 72 8000 MITSUBISHI 99 5.8% MERCEDES-BENZ 43

7000 ISUZU 56 3.3% HYUNDAI 35 GREAT WALL 35 2.0% ISUZU 23 6000 HYUNDAI 34 2.0% GREAT WALL 17 HINO 30 1.7% VOLKSWAGEN 14 5000 VOLVO 29 1.7% SCANIA 12

4000 SCANIA 19 1.1% HINO 12 Courtesy of MTA VOLKSWAGEN 19 1.1% DAF 11 3000 MITSUBISHI FUSO 16 MAN 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec SUZUKI 16 VOLVO 8 DAF 8 FIAT 7 New Commercial Vehicle Sales by Model - top 15 Aug 2010 FIAT 8 SUZUKI 6

MAKE MODEL Aug ‘10 MAKE MODEL Aug ‘09 FREIGHTLINER 7 IVECO 5 KENWORTH 7 KENWORTH 4 Toyota HILUX 247 Toyota HILUX 165 NISSAN DIESEL 7 FREIGHTLINER 4 Nissan NAVARA 218 Mitsubishi TRITON 110 MAN 4 PEUGEOT 3 Ford RANGER 181 Nissan NAVARA 103 STERLING 4 FACTORY BUILT 3 Toyota HIACE 149 Toyota HIACE 88 INTERNATIONAL 3 MACK 2 Mercedes-Benz SPRINTER 110 Ford RANGER 76 PEUGEOT 3 INTERNATIONAL 2 Mazda BT-50 99 Ford TRANSIT 71 FACTORY BUILT 2 WESTERN STAR 1 Holden COLORADO 92 Holden COLORADO 64 IVECO 2 KIA 1 Ford TRANSIT 69 Mazda BT-50 57 KIA 2 CHEVROLET 1 Mitsubishi TRITON 66 Mercedes-Benz SPRINTER 38 MACK 2 Hyundai H1 34 Hyundai H1 35 SSANGYONG 2 Mitsubishi L300 33 CADILLAC 1 Great Wall V240 30 CHEVROLET 1 Volvo FM 25 LAND ROVER 1 Ford FALCON UTE 24 OPEL 1 Isuzu D-MAX 23 Total 1717 Total 1076

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continued from page 1 Used Passenger Vehicle Sales by Make August 2010 The pre-GST rush – what’s that? MAKE Aug ‘10 Market share MAKE Aug ‘09 TOYOTA 2030 27.0% TOYOTA 1529 patchy in places but we got to where of ups and downs but (business) is NISSAN 1161 15.4% NISSAN 1030 we needed to be in the end. quite good really. It’s just that some MAZDA 935 12.4% HONDA 733 “But we haven’t had a bad start to days are a bit quiet.” HONDA 892 11.8% MAZDA 632 this month; we’re doing surprisingly Shayne O’Hagan of Hamilton’s SUBARU 647 8.6% SUBARU 498 well at this stage.” Ideal Cars says business is “still MITSUBISHI 425 5.6% MITSUBISHI 338 September has also started trundling along, though it has its ups BMW 305 4.1% BMW 174 well for Timaru’s Henshaw Quality and downs.” SUZUKI 224 3.0% SUZUKI 174 Cars. “It’s off to a bit of a flier,” says “But in general it’s still fairly VOLKSWAGEN 173 2.3% VOLKSWAGEN 169 co-proprietor Keith White. “In positive, I think.” FORD 170 2.3% FORD 118 August, the first two weeks were September has started reasonably AUDI 77 1.0% MERCEDES-BENZ 82 very slow and the second two weeks well; “not hugely well, but it’s MERCEDES-BENZ 66 0.9% HYUNDAI 61 were very good. Obviously the definitely positive.” HYUNDAI 60 0.8% AUDI 40 market’s extremely patchy but we’re O’Hagan says people seem to CHEVROLET 51 CHEVROLET 39 reasonably happy.” be in the mood to make a buying PEUGEOT 47 VOLVO 35 White says there hasn’t been a decision where “last month they VOLVO 34 PEUGEOT 31 clamour to buy cars before GST goes trended to hum and haw. CHRYSLER 30 CHRYSLER 29 up. “We haven’t seen a rush yet.” “Business is averagely steady JAGUAR 24 ISUZU 18 He says Timaru is facing issues which is fine. We’re doing what we DAIHATSU 22 DAIHATSU 17 like the collapse of South Canterbury have need to and we’re hitting our LAND ROVER 14 SAAB 17 Finance and the Christchurch targets but (things are) plodding HOLDEN 13 OPEL 14 earthquake. “We don’t know what along rather than there being any ISUZU 13 ALFA ROMEO 13 effects they’re going to have.” big mad rush.” JEEP 13 JAGUAR 11 He agrees that it’s difficult to O’Hagan says there’s a good OPEL 13 RENAULT 9 discern any pattern in the current market for cars that are sought after. ALFA ROMEO 12 LAND ROVER 7 used car market but he remains “We had an Altezza that four people PORSCHE 10 FIAT 6 philosophical. “We’ve been in were chasing two days after we got it MINI 9 HOLDEN 6 business 30 years and have seen a lot on the yard.” LEXUS 8 CADILLAC 5 RENAULT 4 MINI 4 Used Passenger Vehicle Sales by Model - Top 25 Aug 2010 SAAB 4 DODGE 3 MAKE MODEL Aug ‘10 Make Model Aug ‘09 TRIUMPH 4 JEEP 3 Toyota COROLLA 389 Subaru LEGACY 288 CADILLAC 3 LEXUS 3 Subaru LEGACY 384 Toyota COROLLA 231 DODGE 3 PONTIAC 3 Toyota ESTIMA 292 Toyota VITZ 220 FERRARI 3 ROLLS-ROYCE 3 Mazda ATENZA 275 Honda ODYSSEY 179 PLYMOUTH 3 PORSCHE 2 Nissan PRIMERA 209 Nissan PRIMERA 174 ROVER 3 VAUXHALL 2 Mazda DEMIO 206 Mazda DEMIO 174 SMART 3 BUICK 1 CITROEN 2 CITROEN 1 Toyota VITZ 200 Toyota ESTIMA 156 MG 2 DAEWOO 1 Honda STREAM 188 Nissan BLUEBIRD 151 PONTIAC 2 DAIMLER 1 Honda ODYSSEY 183 Mazda ATENZA 145 ASTON MARTIN 1 FACTORY BUILT 1 Subaru IMPREZA 177 Subaru IMPREZA 143 AUSTIN 1 FERRARI 1 Honda CIVIC 157 Honda CIVIC 143 BENTLEY 1 LINCOLN 1 Nissan BLUEBIRD 151 Nissan WINGROAD 138 BUICK 1 MASERATI 1 Suzuki SWIFT 139 Nissan MARCH 123 DAEWOO 1 MG 1 Honda ACCORD 134 Bmw 3 Series 119 FACTORY BUILT 1 MORGAN 1 Nissan WINGROAD 132 Suzuki SWIFT 111 FIAT 1 MORRIS 1 Mazda AXELA 130 Honda FIT 106 HOMEBUILT 1 RAMBLER 1 Toyota IPSUM 109 Honda ACCORD 102 LAMBORGHINI 1 ROVER 1 Mitsubishi LANCER 107 Mitsubishi LANCER 93 LEYLAND 1 SMART 1 LINCOLN 1 SSANGYONG 1 Toyota ALTEZZA 106 Nissan SUNNY 92 LOTUS 1 STUDEBAKER 1 Mitsubishi COLT 101 Toyota ALTEZZA 92 PACKARD 1 Toyota ALLEX 99 RANGE ROVER 1 Nissan SKYLINE 97 SKODA 1 Mazda MPV 96 VAUXHALL 1 Volkswagen GOLF 95 Total 7530 Total 5874 Toyota IST 89

20 | www.autofile.co.nz industry statistics

Used Import Passenger Registrations 2006 2007 2008 2009 2010 14000 Corolla best-selling 12000

10000 used import

8000 Toyota led the way in 6000 used import registrations

4000 in August, with the Corolla being the best-selling passenger 2000 vehicle, and the brand leading the Fifth place was occupied Courtesy of MTA 0 overall passenger car market. by the Nissan Primera, with Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec In the commercial market, 209 sales, followed by Mazda’s though, Toyota had to give best compact Demio on 206. He says he’s also noticed an they ‘want’ the car. to Nissan. Toyota’s Vitz slotted into increase in yard traffic on weekends. “There are good days and bad The Corolla continued its seventh place on 200 sales – “We’re definitely getting more than days and the market has definitely see-sawing battle with the down from 220 in 2009 – and we were.” retracted a bit.” Subaru Legacy to be best-selling Hondas filled the next two places, O’Hagan thinks the outlook is Buyers are also making individual car with 389 sales to the Stream with 199 sales and the generally positive. “It’s a matter of information-based decisions. the Legacy’s 384. That reversed Odyssey with 183. doing what you do and doing it “People aren’t making impulse the positions in 2009 when the The Subaru Impreza properly. If you do a better job than decisions any more. They’re more Subaru was a solid 57 cars ahead completed the top 10, as it did in the next guy, hopefully you’ll get informed and look at every car of the Toyota. August 2009, but this time with more sales.” before they make a decision. The This August’s registrations of 177 sales to 2009’s 143. Andre Flavell, used car sales spot buyers aren’t there as much as both models were substantially Toyota was the best-selling manager at Auckland’s John Andrew they used to be. ahead of the August 2009 totals, brand with 2030 sales, from Ford and Mazda, says the current “Sales people need to build with the Corolla 158 up on its Nissan (1161) and Mazda (935). market is tough and the level of relationships with customers, stay 2009 performance and the In the August commercial inquiry has dropped off. “That’s got a in touch with them, email them Legacy 96 ahead. market, Nissan led with 58 sales lot to do with the weather. It’s been (about deals). There’s more dialogue Third best-selling model this to Toyota’s 44 and Mazda’s 28. harsh the last few weeks.” involved in selling a car now. People August was another Toyota, the Best-selling individual model was He says people are buying cars want the whole mathematical Estima MPV which notched up the Toyota Hiace (30), edging on a need rather than want basis. equation, and there are lots of hoops 292 sales. the Nissan Caravan by one. The “They’re buying because they need to go through before they sign on That was 17 ahead of Mazda’s Isuzu Elf and Mazda Bongo dead- a car to get from A to B not because the dotted line.” perennially popular Atenza. heated for third.

Used Commercial Vehicle Sales by Make August 2010 Used Commercial Vehicle Sales by Model - Top 20 Aug 2010

MAKE July ‘10 Market share MAKE July ‘09 MAKE Model Aug ‘10 MAKE Model Aug ‘09 NISSAN 58 29.0% NISSAN 87 Toyota HIACE 30 Toyota HIACE 50 TOYOTA 44 22.0% TOYOTA 84 Nissan CARAVAN 29 Nissan VANETTE 38 MAZDA 28 14.0% ISUZU 23 Isuzu ELF 21 Nissan CARAVAN 37 Mazda BONGO 21 Isuzu ELF 20 ISUZU 27 13.5% MAZDA 8 Nissan VANETTE 20 Nissan ATLAS 8 FORD 9 4.5% FORD 5 Isuzu FORWARD 5 Toyota DYNA 8 CHEVROLET 7 3.5% CHEVROLET 4 Mazda TITAN 5 Toyota REGIUS 8 MITSUBISHI 6 3.0% HOLDEN 4 Nissan ATLAS 5 Mazda BONGO 7 HINO 5 2.5% MITSUBISHI 4 Hino DUTRO 4 Toyota HILUX 4 FACTORY BUILT 4 2.0% FREIGHTLINER 3 Chevrolet SILVERADO 3 Toyota TOWNACE 4 FIAT 2 HINO 3 Toyota LITEACE 3 GMC 2 SUZUKI 2 Toyota TOWNACE 3 SUZUKI 2 DAIHATSU 1 Chevrolet C10 2 Fiat DUCATO 2 BEDFORD 1 DODGE 1 Ford F100 2 IVECO 1 FIAT 1 Ford F150 2 RENAULT 1 GMC 1 Ford FALCON 2 VOLKSWAGEN 1 MERCEDES-BENZ 1 Gmc SIERRA 2 WILLYS 1 SCANIA 1 Mazda BT-50 2 Total 200 Total 235 Mitsubishi CANTER 2

www.autofile.co.nz | 21 IMVIA figures suggest that as a result of the Exhaust Emission Rule, coming into force 1 January 2012, 50 percent of vehicles will no longer be compliant. As part of an ongoing series, autofile will profile used import dealers and how the changes will impact on their business.

Mike Mapperson, director typical importing dealer, I import sell the odd New Zealand-new car, than its Japanese counterpart. of Coopers Cars on Auckland’s cars from about 2001-2, through when the mileage is low.” That’s what started imports in Great North Rd, believes that if the to about 2007. Generally speaking, Mapperson concedes that if the first place, the fact that they implementation of the Exhaust I don’t get involved in competing he were selling brands such as were just so much cheaper than Emission Rule goes ahead as with new car franchises’ used car Toyota, Nissan and Mazda it would local cars, and that’s never really planned, dealers will be forced to departments. But if I can only be easier to source stock locally. changed, though admittedly the import newer vehicles at higher import cars from 2006 and 2007 in “But it would also mean that I’d be gap has narrowed.” prices, and ultimately end up the particular lines that I deal in, competing with nine out of ten “Perry Kerr has been very vocal, competing with the used vehicle namely Audi, Volkswagen, Peugeot, dealers, rather than one out of ten.” and has come out as saying that business of franchise dealers. Alfa Romeo and Mini, then I’m “We’ve selected our market David Vinsen is talking through “If it goes ahead as expected, going to be bringing in vehicles niche as far as makes are the top of his hat because he and as proposed, dealers won’t that will compete directly with concerned, and we’ve selected underestimates the innovative have much choice. They’ll have them, and they’ve never been able our market niche as far as age abilities of IMVIA members. If we their catchment of cars reduced to compete on price with imports.” of cars is concerned. We don’t get innovative, that means we will by probably 55 to 60 percent. Mapperson doesn’t believe want to get too old so that they just innovate towards the stock The thing that I don’t understand, it’s possible to source enough get problematical, and we don’t that the franchise dealers are and the thing that I don’t think stock locally, especially with his want to get too new deliberately, selling. Are the principals going to the people involved fully thought specialisation. because we don’t want to be be happy with that when they find through, is that it is all being driven “We went for a year last year competing with the used car that there are shipments of 2007- by the Motor Industry Association, when we couldn’t buy anything department of franchises.” 2009 vehicles coming in? When representing new dealers and because the currency was rubbish, Mapperson believes late model there were shipments of 2002-2005 distributors and manufacturers. and it’s simply not possible to imports will be able to compete on vehicles coming in it didn’t bother But the closer they bring the age maintain a full stock on local cars, price with late model New Zealand- franchises, but it will be a different limit on used imports to a new car, without buying stuff that has done new. “There is a degree of artificial kettle of fish in this other scenario. the more we are going to be in 140,000 kilometres, which we never price inflation of new vehicles, They would have been better to competition with franchise dealers. would normally sell within our which makes a three-year old New have left us alone, and been happy “Up till now, I think I’m a very import range. We do occasionally Zealand-new car more expensive with a 6 or 7 year rolling ban, instead of which they just keep nagging away at the Government to protect their own interests.” Mapperson says that a raft of Government initiatives have made it progressively harder for used import dealers. And while there may be the cover of environmentalism, it’s everyday purchasers who lose out. “What the Labour Government in particular lost sight of was the people who vote that want cheap cars to be available across the board. If there’s imports coming in, then the price of the local vehicles that are already here will go up. Does that help the consumer? I don’t think so.”

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22 | www.autofile.co.nz www.autofile.co.nz | 23 ManhiemFowles has relocated to a new site at 267 Roscommon Rd, Wiri, South Auckland, handy to both the Southern and South Western motorways. General Manager Alan Roderick says the new site is not only more conveniently located, but allows for greater vehicle capacity and more efficient processing.

ManhiemFowles now occupy 15 acres of a 35 acre site, and with a flexible arrangement they’re able to boost storage capacity when necessary to hold extra stock for monthly events, special auctions and specific customer requirements. Each Wednesday they run the two-lane Trade auction, starting at midday. The Trade Auctions feature a wide selection of ex-lease, rental, corporate and dealer cars across all brands. Thursday there’s the Budget Car Auction, open to the public and held at midday. The auction covers all price breaks and brands and is anticipated to continue growing with the improved road frontage exposure.

Occupying a portion of the old Nissan assembly plant, their paint shop is fitted with state of the art equipment including infra-red lamps, Low ManheimFowles offers a number of onsite services to enable Bake ovens and a modern chassis machine. The both sellers and buyers the opportunity to get vehicles ready company utilizes waterborne Glasurit paints to for sale. Their extensive paint shop ensures a professional achieve a professional finish whilst minimising finish at a highly competitive rate. environmental impact.

ManhiemFowles ph 09 918 0500 www.manheimfowles.co.nz