Cost of Policies to Car Industry

www.autofile.co.nz OCTOBER 2019

THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS $ Cost of policies Specialised to car industry training that’s 1.3b proven to increase profits

Stella Stocks on 20 years with AA Utes may cost between $8,000 and $10,000 more under Julie Anne Genter’s proposals p 10

The Motor Industry Association has calculated a fuel-economy Monterey Car Week standard will lead to ‘massive market distortions’ and sales drops highlights

overnment proposals to believes, that it should be canned – will add between $8,000 and penalise cars imported in its current form while the $10,000 to the sticker prices of utes. into this country based on government develops one in The MIA describes the weight- p 16 theirG fuel efficiency could cost the consultation with the industry, banded approach as “unworkable, new-vehicle industry upwards of along the lines of a system used in unfair and poorly constructed”, $1.3 billion. Europe – if one is needed at all. adding this is “the most Warning issued over That’s one of the price bills that David Crawford, chief executive challenging to resolve”. stink bugs the Motor Industry Association officer of the MIA, warns Genter’s Crawford believes the policies (MIA) has calculated the clean car proposals will create “massive put forward by Genter would standard will come in at, as one market distortions leading to drops simply amount to a tax on vehicles of two clean car policies tabled in sales”. He adds distributors may without achieving anywhere near p 23 by Julie Anne Genter, Associate even withdraw certain models, the reduction in greenhouse gas Minister for Transport. including small cars, from New (GHG) emissions being targeted. p 26 The MIA is among industry Zealand, while one marque may The MIA, along with organisations critical of the supply- have to pull out altogether. representatives of VIA (the Imported side mechanism, and its concerns And the structure of the Motor Vehicle Industry Association), centre on the modelling and costs. standard – with eight weight the Motor Trade Association (MTA) Profile on The proposed fuel-economy bandings, and lumping light and AA, met with Genter and Chris Knight standard is so bad, the association commercials with cars and SUVs Ministry of Transport (MoT) officials

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GUEST EDITORIAL Policies will affect DIRECTORS Brian McCutcheon EDITOR how dealers work [email protected] Darren Risby ph. 021 455 775 [email protected] The Motor Trade Association is calling for clean Darren Wiltshire JOURNALISTS car proposals to be carefully implemented [email protected] Sue Brebner-Fox ph. 021 0284 7428 [email protected] Lucy Pink he MTA has consumer information DESIGNER [email protected] voiced similar notice (CIN) and proof of Adrian Payne concerns to registration. [email protected] MOTORSPORT Mark Baker thoseT raised by MIA, VIA, This is in addition to [email protected] and AA on the clean car the trader displaying a proposals, and has been new CIN showing the Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. part of the industry- car’s CO2 profile, import Back copies are also available on the website. government conversation. duty or credit accrued GREIG EPPS Copyright: Published monthly by 4Media Ltd, The immediate debate Advocacy and strategy when imported, and PO Box 6222, Dunedin 9059. manager, MTA has centred on calculating the fee or rebate the All statements made, although based on information believed to be CO2-emissions standards for customer faces. accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in new and used imports, but the The MTA has previously called print or digital format in whole or part without written permission, proposed clean car standard asks for the vehicle fuel-efficiency label whether by copying or any other means, is strictly forbidden. for too much too soon. The MTA to be folded into a revised CIN All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) has also urged the proposed and we’ll continue to push for a exemption for private imports be reduction in the amount of window dropped – climate change will furniture traders must display. affect us all, so no one should be It is possible that, differing from able to skirt future rules. current rules, revised CINs would But what about car yards? We’re need to be displayed on new cars Vehicle Inspection NZ keeping effects on traders front so consumers get all relevant and centre with officials. There emissions and feebate information will be a range of new compliance on a single, uniform template. requirements, and dealers will need The CIN will show the offer Entry Certification adequate time and information to price, along with the consumer’s prepare. rebate or fee and import penalty specialists The most obvious impact or credit. How will such disclosure comes from the clean car discount, affect traders when negotiating or “feebate”, which will be with clients who take in a trade or administered at first registration cash to the transaction? of the vehicle after the importer There are many unanswered has paid a penalty or received a questions about how consumers credit for its CO2-emissions profile, might use the rebate. Will it be assessed at entry. available to traders as a deposit? Registered traders will be Will finance companies agree responsible for paying any fee to to cover the fee? Will finance the administrator, possibly the providers require the rebate to be NZTA, and customers will have to used to reduce the loan amount? apply for rebates. Will it even incentivise a change in Even in this basic situation, behaviour? dealers will need to know the And we haven’t even touched on level of fees or rebates due, how educating consumers and traders, • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges and when to pay, where buyers and regulatory enforcement. The • Registration & relicencing • Exhaust emission testing must go to claim rebates, and devil will be in the details and the what information customers MTA will seek to exorcise irrelevant will need to provide, such as the compliance requirements from any 0800 GO VINZ VINZ.CO.NZ Tel: +64 9 825 0888 vehicle offer and sale agreement, final scheme. www.jacanna.co.nz www.autofile.co.nz 3 news

[continued from page 1] in Wellington on September 19 after Jargon-buster of high-emitters. It’s also known lodging formal submissions as part as the fuel-economy standard. It’s of the consultation process. Julie Anne Genter, Associate what the automotive industry is They also made their views Minister for Transport, unveiled basically up in arms about. known before the meeting in a joint her clean car policies on July 9. In Then there is the clean car letter, which called for an industry essence, they form a two-pronged discount on the demand side. working group to be set up to work attack to reduce CO2 emissions It’s known better as a feebate with the government on proposals from our light-vehicle fleet. scheme. Consumers would pay that will succeed in New Zealand. On the supply side, there’s fees on high-emitting vehicles It was hoped in some quarters the clean car standard. It aims when first registered in New that Genter would agree for the to limit what vehicles cross the Zealand – or get discounts on proposed schemes to be restarted border by penalising importers greener models. effective than those on the supply from scratch. side that aim to limit what models Instead, “workshops” have been The MIA has shared its modelling, which divides the light are imported in the first place. taking place to provide clarity, to modelling for the fuel-economy fleet into eight weight bands. “The clean car standard in the discuss and refine proposed policy standard with the minister, These scenarios are: discussion document is unworkable points on the clean car standard other political parties and  The level of accumulated fees in its entirety and the MIA doesn’t and clean car discount. trade associations “to facilitate based on the proposals would support it,” says Crawford. The latter, also known as a discussion focused on facts, not be about $1.3b. That’s the He adds issues with the fuel- feebate scheme, would see buyers opinions” based on its projected net effect of the credits and economy standard, as it stands, of high-emitting vehicles penalised fiscal impacts. penalties if carbon-dioxide include the timeline being short at the point of first registration in Essentially, the standard would (CO2) reductions track at and needing to be extended to New Zealand. reward importers of low-emitting business-as-usual rates. cover two new-vehicle model cycles There is some support in the vehicles and charge high-emitters  That figure would drop to about – that’s to say, set out to 2030. automotive industry for such when they cross the border. $667 million if the automotive Crawford describes the target demand-side action to reduce The MIA has examined several industry can achieve best-rate rate at “far too ambitious” because emissions from the light-vehicle fleet, scenarios using a 2019 sales- CO2 reductions. no country has achieved anywhere but the clean car standard has been weighted annual market profile near the rate of CO2 reduction given an unequivocal thumbs-down. based on the government’s The lower cost would require an from its fleet as required by the increasing rate of model swap government’s plan. from internal-combustion engine “The penalty rate is too high vehicles to those with more and severe. It should start low and electrification, such as hybrids, ramp up over time. Penalties under plug-in electric hybrids and battery the clean car standard should be electric vehicles (EVs). the same for both the new and The extent to which CO2- used-vehicle sector, whereas the emission cuts have to be achieved discount should not.” for light vehicles just to reach a He adds the weight bandings Specialists in neutral credit or penalty position into which vehicles would fall are pre‑shipment inspections is about 27 per cent in six years, “manifestly unfair because no predicts the MIA – or “three times distributor other than those that in Japan & UK the rate of current year-on-year retail only EVs would gain credits”. improvement”. The clean car standard will be  Full border inspections And Crawford’s verdict on that? particularly severe on new small Such a reduction over six years “is vehicles, “which will be among the  Authorised MPI inspections not possible”. first to be dropped by distributors”.  Authorised NZTA inspections This is because small cars are STRONG OPPOSITION more price sensitive than medium  Odometer verification While there is some support for to large vehicles. If a marque the clean car discount, the clean believes its model will attract a  Pre-export appraisal car standard is copping serious flak penalty, then it will have to cost from industry organisations. that charge into the sticker price.  Vehicle history reports The MoT is basing both For example, if a $3,500 charge proposals on what’s known as the is imposed on a $25,000 car, “that’s COVEC model, which uses prices a significant penalty”. elasticities. This methodology looks Other issues raised by the MIA at the combined effects of the on the clean car standard include it standard and discount, and then should incorporate “super credits” factors in the net effect. as an incentive to supply ultra-low JEVIC NZ Based on this modelling, the emission models, and the proposal MIA believes demand-side policies, treats new and used as the same, 09 966 1779 www.jevic.co.nz such as a feebate scheme, are more “so it incentivises fewer new cleaner 

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Proportion of new models attracting clean car-standard penalties LARGE MICRO CARS SMALL CARS LIGHT CARS MEDIUM CARS LARGE CARS SMALL CHEAP MEDIUM SUVs PEOPLE LARGE SUVs EXPENSIVE UTES 4x2 UTES 4x4 ALL VEHICLES SUVs MOVERS SUVs 2022 0% 13% 25% 36% 81% 59% 47% 39% 68% 30% 70% 79% 53% 2023 86% 34% 49% 44% 84% 88% 78% 100% 82% 61% 100% 92% 77% 2024 100% 74% 69% 60% 94% 94% 88% 100% 99% 85% 100% 100% 90% 2025 100% 83% 95% 79% 96% 96% 91% 100% 100% 95% 100% 100% 95% The Motor Industry Association has shared its data with other automotive organisations. These include the AA, which has carried out a projection on 1,768 new car models. It has calculated only 166 of them would not attract a penalty fee when they cross the border under the government’s proposed clean car standard by 2025. Source: MIA/AA

t cars and older, dirty vehicles”. which isn’t far off Europe’s. those importing small vehicles emission vehicles and that Then there are issues lumping “The rate of emissions that perform well-below current no marque makes products all light vehicles, including utes reduction from light commercials industry-average CO2 emission unique to this country. and vans, into one target. is slower at around 1.1 per cent,” levels, and will lead to market  Fails to recognise models “No OECD member has found says Crawford. “This is due to the distortions between new-vehicle available overseas can’t be a method that can combine worldwide lag of transition to light distributors – let alone between immediately imported due these without serious flaws,” says EVs, part-driven by longer product new and used importers. to testing, verification and Crawford. “The issue is different cycles and Australasia taking Asia- Crawford says it also incentivises homologation processes fuel use, fuel types and fuel- Pacific products. used-vehicle importers to adopt an required to ensure each sold consumption design criteria “Local demand for vehicles agent model whereby agents never in New Zealand has the right affecting emissions differently, so with higher load, more utility own vehicles, but merely facilitate equipment for our market. practical reduction rates vary as and multi-tasking capability has purchases for New Zealanders from well as CO2g/km start points. led to balancing performance overseas sellers. Two guiding principles moving “It makes no sense for unique with emissions and consumption The MIA adds the clean car forward should be “sensible policy positions of this nature to needs. They are still cleaner, and standard, as proposed, also: grouping of vehicles with unique be so different from our supplying more efficient and effective too.  Fails to recognise long targets for each group”, and for a countries without a clear rationale “The rise in the volumes of one- model-run cycles, overseas standard to be “integrated with for a market of our size.” tonne utes has been for a number requirements for low- other policies”. of reasons. It’s largely due to use MIX OF ACTION NEEDED in the commercial sector by trades To reduce CO2 emissions by more and farmers. than they are currently, New “While cars and SUVs are Zealand’s car industry will need worldwide vehicle types, utes aren’t. policies to incentivise a faster rate They are last in-line for technologies of change, and the MIA is urging as manufacturers concentrate on the government to develop a low-emission cars, SUVs and vans. an independent choice policy mix on reducing GHG This means there’s unlikely to be any emissions from transport. low-emission alternatives for this “These should at least cover sector for some time to come.” Quest Insurance offers: in-fleet incentives targeted at Kiwis prefer automatics over owners to move to the safest and manuals, and petrol over diesel, for Mechanical Breakdown Insurance – backed by AA Roadside Assist cleanest vehicles within their cars, so it’s not a matter of noting budgets, improving fuel quality a different model exists in other Comprehensive Motor Vehicle Insurance and better use of tax incentives,” markets and questioning why we – including learner and restricted license cover. says Crawford. can’t have it here. Weekly, fortnightly & monthly instalment options now “There are no policies that make “There’s an implied accusation available to match your customers pay cycle it easy to scrap vehicles, and our in the discussion document charging network needs significant that distributors are deliberately Guaranteed Asset Protection upgrades to ensure those supplying less fuel-efficient vehicles Lifestyle Protection Insurance purchasing EVs can top them up. to this market,” says Crawford. “This “Reliance on old used imports isn’t true. Vehicles supplied, albeit isn’t the answer to safer, cleaner with higher emissions profiles vehicles. We recommend that – in compared to other countries, are a addition to the standards-based direct function of what consumers approach – an age limit is set of eight buy. Supply is demand-led.” years of age from the date of first The MIA’s key findings into the If you are a forward thinking motor vehicle trader, or financier, looking for a trusted vehicle insurance partner, call Quest. registration anywhere in the world.” fuel-economy standard include The MIA notes the rate of CO2 vehicle prices ballooning. At worst, Contact: Simon Moore reductions from new cars has been it could force several distributors to ph. 021 149 2266 good in New Zealand by averaging cease trading in New Zealand. e: [email protected]  about 1.9 per cent year on year, It would be overly punitive on

www.autofile.co.nz 5 news Industry warnings over policies

likely effect of a notes a significant number of cars that may militate against achieving does its fair part to help New t government proposal already on our roads are poorly the aim of a more efficient fleet. Zealand meet long-term GHG to place levies on cars maintained, inefficient or unfit “The proposal sends out mixed emissions targets.” Awhen they cross the border is for for purpose – a concern Genter’s messages about vehicle safety the quality of imports to drop as proposals “totally ignores”. and fuel efficiency. These aims will ‘CHEATING’ IS A PROBLEM the market adjusts to meet price “The bulk of GHGs caused by be compatible in many cases, but The AA says there are significant demands. road transport come from four in others they will be mutually issues with relying on how VIA (the Imported Motor Vehicle million vehicles in the fleet, not the exclusive. For example, a larger manufacturers report the fuel Industry Association) says its sector 300,000 that come into it each year,” vehicle laden with features may be efficiency of their vehicles – both has identified a “sweet spot” for says Vinsen. “Unless and until we thirstier than a small fuel-efficient for the clean car standard and cars coming into New Zealand. deal with what we already have on car, which by definition would operating the feebate proposal. The average free on-board our roads, we will only be tinkering almost certainly be less safe.” “The problem in a word is price for used imports from Japan around the edges of the problem. As for the cost-benefit and cheating,” says Mark Stockdale, is about $8,500, which ties in with “The proposals attempt to social-impact analyses for the principal adviser – regulations. what Kiwis can afford. incentivise change in individual clean car proposals, they are “A simple Google search for fuel- “When the exchange rate behaviours through pricing signals. “unconvincing and, at times, efficiency test cheating returns changes favourably, better quality This minimises political risk by disingenuous”. stories about Ford, Mitsubishi, vehicles are imported and vice- removing responsibility from the VIA notes the Ministry of Volkswagen, Suzuki, Subaru and versa,” says David Vinsen, VIA’s chief public to the private domain.” Transport (MoT) has admitted it has Mazda. executive. “Similarly, government Vinsen says the final phase of little information on the Japanese “The main problem is that it’s policy that makes it more expensive electronic stability control – for market, vehicles in its fleet or cheaper for manufacturers to cheat to import cars doesn’t change what the crash-avoidance system to be what vehicles would be available tests than meet standards, and consumers can afford.” installed in all imports from March by 2021 – even though cars from tests for fuel economy are relatively That’s one of the issues VIA says 2020 – will reduce the need for the Japan make up more than half of simple to manipulate. This area is will be a “likely primary effect” of standard as proposed because the those imported annually. fraught with difficulty.” the clean car standard proposed rule will mean newer, and likely “The goal shouldn’t be to The AA says the MoT is well- by Julie Anne Genter, Associate more fuel-efficient, cars being choke the motor-vehicle industry aware the International Council Minister for Transport. It would imported anyway. as much as possible,” says Vinsen. on Clean Transportation has run alongside a feebate scheme He points out other “The goal should be to ensure it, compared claimed fuel efficiency in a bid to reduce greenhouse gas programmes are being developed alongside every other industry, with real-world figures and found (GHG) emissions from the light- a steady increase in discrepancies vehicle fleet. as standards have tightened – from However, VIA warns the nine to 42 per cent. government that importers Stacking up the costs “We believe there are more would need to bring in poorer fruitful opportunities for meeting quality cars to meet the pricing The clean car standard and The proposals rank diesels our 2030 Paris Agreement sweet spot – such as those with discount, as outlined in the better for fuel efficiency than obligations through a serious higher kilometres, in rougher government’s discussion petrol variants in like-for-like pursuit of second-generation condition and perhaps even document, could disrupt the models. For instance, Ford biofuel technology,” adds Stockdale. accident grade. industry on a scale not seen, Mondeo diesels would go from an “As drafted, the proposed The association says another perhaps, since the vehicle existing price premium of $1,500 policies run a considerable risk emissions rule. to a substantial $8,832 discount. serious flaw with the fuel-economy of low-policy effectiveness based For example, small cars in The MTA, using the MIA’s data, standard is that private importers on current settings. This means weight-band one of the standard, says some models may attract will be exempt, which will high costs, low achievement according to MIA modelling, are penalties under the standard, encourage a “business direct to of carbon abatement and likely to be disadvantaged in the but rebates under the discount. consumer” model that bypasses significant equity issues.” market, such as Suzuki’s Baleno These include the Ford Everest, New Zealand consumer law. The AA has calculated the and Swift. Holden Spark, Honda Jazz, “We want to discourage and some Nissan Navara and clean car policies would at best such a model to Volkswagen Golf models. make a one per cent reduction ensure purchases in transport emissions continue to be by 2025, but more have the benefit likely would merely of protections increase taxes on afforded by Kiwis dependent the Consumer on their cars. Guarantees Act,” “We believe says Vinsen. this is not The association inherent to such 

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t schemes, but reflects the fact standard policy, which will have – this scheme has been designed arguably – the greatest impact on without significant input from our industry. the $5 billion-a-year vehicle “There’s no logic or justification importation industry,” says for two programmes because Stockdale. there will be too many potential “Because all the information perverse, contradictory outcomes is held by the government, it’s to their dual implementation.” unclear whether these issues Instead, the MTA has submitted are significant or being swept alternative options in order of under the carpet to meet political priority. The first is a significantly objectives.” revised and simpler clean car On the way forward, the standard, renamed along the association doesn’t believe that lines of the “CO2 emissions entry measures of the scope proposed standard”. In effect, its less-hurried by Genter can meet government introduction would be a “hybrid” of expectations for the design of the government’s two schemes, but regulatory systems without drawing on elements from both. more analysis, co-operation and This would see incentives and consideration. penalties applied at the border, and It is, therefore, urging the consumers properly educated and government to extend the waiver informed of the emissions profile of on electric vehicles (EVs) from potential purchases. attracting road-user charges. The MTA’s other suggestion is “Given the original intention to proceed with a modified feebate was to reach 64,000 EVs by 2021 scheme, but scrap the fuel-economy and projections show the likely standard. A key aspect is that it will total by 2021 will be 32,000, an be enforced at the border – not at extension to 2025 will not have any the time of the retail transaction as significant effect on the National has been proposed. Land Transport Fund.” When it comes to the proposed The AA also wants the MoT to clean car standard, Epps says: withdraw from stated levels of “Its rate of change is too quick discounts and penalties alluded and the consequences of getting to in its discussion document it wrong will be catastrophic to allow the market to return for many importers and the to normal over the next two economy – massive cost increases years, so sales of EVs and utes for potentially minimal gain if aren’t disrupted or magnified EVs aren’t price-competitive and by anticipation of government available in volumes to meet PROVIDENT subsidies and penalties. potential demand. “The administration and MAJOR STOCK ISSUES costs required to comply will The Motor Trade Association (MTA) be significant, while the rate of is so concerned with the clean change in CO2 settings will be car policies that it has made a too much for the industry to counter-proposal in its submission accommodate. Forecasting will to the MoT – essentially a modified be impossible with significant implementation of Genter’s potential stock imbalances.” feebate idea. As for proposed feebates, the “The proposals seek to MTA finds it difficult to forecast implement two distinct policies, what the market will look like by which have caused confusion in 2021. However, extending 2018/19 public discussions,” says Greig new-vehicle registration figures Epps, advocacy and strategy across the proposals indicates $73 manager. “Indeed, media million in discounts versus $175m commentary has focused on the in fees, which it contends isn’t a  feebate and less on the emissions “largely balanced” outcome.

www.autofile.co.nz 7 news Scammers sting car dealers he Motor Trade Association contact the police if you have understanding of how dealers buy (MTA) is warning the suspicions.” stock from private sellers. industry needs to be on Luke Eastell, a mediation adviser “When the legitimate dealer highT alert after businesses have with the MTA, has been working asks the scammer, who is lost hundreds of thousands of with dealers targeted by the scam. pretending to be the actual owner, dollars in a sophisticated scam. Explaining how it operates, he for details, everything about the The criminals moved their says: “Imagine you, a relative or owner and car stacks up. When target area from Waikato to the friend has a car or boat for sale on they go to pick it up, they realise South Island last month and the Trade Me. You get contacted by an they’ve been ripped off. The MTA is aware of at least half a individual from ‘Gregory Wholesale money’s gone and the dealer dozen of its members being hit. It Vehicles’ based in Wellington. doesn’t have a car. is now liaising with victims and the “A price is negotiated and you “Dealers pay into a Kiwi account, authorities. are requested to email personal but the money gets transferred The scam was first exposed by details, copies of your driver’s overseas pretty quickly. This scam Tony Everett, of the MTA Autofile Online on September 13 licence, addresses, contact could be huge and I think more after Darryn Cauflield, managing numbers and bank-account details, stolen. These scammers still have dealers will get burnt.” director of Auto66 in Hamilton, so the sale document can be your personal and account details, “We’re aware of a scam spoke about how car dealers, completed and sent for sign-off. which could come under attack in targeting dealers,” says George including his company, have been “You believe you’ve negotiated the future. Hiotakis, head of trust and safety ripped off. a sale to a dealer. If you ring to “So apart from dealers who at Trade Me. “We’ve been in touch Tony Everett, the MTA’s sector see when the transaction will be have been scammed, your identity with all our dealers to make manager – dealers, says: “The completed, you’re fed a credible is in the hands of these criminals. them aware and warn them to scammers have been posing as delaying tactic, but receive no Victims want this group stopped, be vigilant. Our team has put sellers acting on behalf of sick further communication. but recognise they won’t get their measures in place and is working relatives with rates that seem “In the meantime, your stolen money back.” with the police. too good to be true. They have identify is forwarded to credible Caulfield has contacted the “This sort of scam is rare and changed their identities and have dealerships and the vehicle is police about the scam, and the vast majority of trades on-site exposed dealers’ willingness to do offered for sale – often to several suspects it may be an “inside job”. go off without a hitch. The golden things on the fly. at the same time – and they have “They’re going about it the rule is if a deal seems too good “They were operating in the been provided with your details right way to drag money out of to be true, then it probably is. We South Island last month after and documents. dealers,” he told Autofile. “They’re urge anyone who sees something working around Hamilton. We “Traders do background checks targeting the right kind of traders that worries them to get in touch. advise traders to be on their guard on you and the car to be satisfied with certain vehicles. I think the There’s a ‘community watch’ button for anything weird with potential you’re a private citizen, but they con is run by people who have on every listing that can be used transactions. Delay deals and do aren’t communicating with you worked in the industry because it’s to alert us to anything that doesn’t proper research on vehicles, and because your identity has been too professional. They have a good seem quite right.”

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www.autofile.co.nz 9 news Driven by passion for industry

hifting New Zealand’s focus However, she’s certainly proud onto vehicle safety is one of of what she, her teams and the the AA’s major achievements AA have achieved over the past duringS her 20-year career with it, two decades. says Stella Stocks. But how did she start out? When she started with the Originally from Birkenhead association in 1999, there were no near Liverpool, Stocks was the testing stations for warrant and UK’s first fully qualified female certificate of fitness inspections – automotive engineer. She and it was her job to introduce them. achieved this with the highest “The process for entry qualifications possible. compliance had just started, so “I remember the day I made the we took that from operating at a decision to go into the motor- smaller number of sites that we vehicle industry,” she recalls. “I had t owned and operated out to a third- a place at university, but I knew I party model to develop greater didn’t want to go. coverage,” explains Stocks, who is “I was walking to school with retiring at the end of the year. my mates and said to them, ‘I’m “Our initial automotive service going to be a mechanic’. They model was limited to fixed- were like, ‘yeah right’. Then I said, price servicing, so that was also ‘no, I am going to be a mechanic expanded out to all services for because it’s what I want to do’. And motorists, including repairs. that was it. “Vehicle safety also wasn’t a part “I love solving problems and of the national psyche at the time, love things that challenge my so that was something we focused brain – fixing things, such as when on as well, and ensuring that we there’s a problem with a car. You were a trusted spokesperson on diagnose what it is and repair it. that subject. “I love solving problems and love things That’s real satisfaction.” “We also introduced mobile While there are now more vehicle inspections, which I guess that challenge my brain – fixing things, women working in all sectors of the speaks to the fact that what we such as when there’s a problem with a industry than when Stocks entered did was put consumers at the it, it’s still male-dominated. centre of what we were offering. car. You diagnose what it is and repair it. “It has been challenging at We wanted to make it as easy as That’s real satisfaction” – Stella Stocks times, but for any women thinking possible for people to access the of going into this industry I would services they needed.” ago, you would never have seen it, ceremony in Auckland. Last year say it’s important to follow your As well as stepping down as the but it’s now on everything they do.” was the awards’ first incarnation dreams and passion. AA’s general manager of motoring Stocks’ role means she’s also under the AA Driven banner and “Reflecting on my career, I services, Stocks will be relinquishing responsible for the AA Auto Centre they received widespread acclaim. would also say you need to identify her positions as a council and Network, which encompasses Although Stocks may have been people who are truly going to board member of ANCAP, and on 36 outlets across New Zealand. a leading light in their success over support you. the Vehicle Safety Research Group It provides one-stop shops for the years, she’s quick to point out “When I first went into the run in conjunction with Monash motorists’ vehicle and servicing they are such a success because of automotive industry it was seen University, Melbourne. repair needs. She’s also a director the massive team effort that goes as reasonably jaw-dropping at the “The impact that a good vehicle of AA Auto Glass Ltd and AA on behind the scenes. time, but my parents supported me can have when you’re in a crash Battery Service Ltd. “It’s an opportunity to celebrate because it was what I wanted to do. versus a bad vehicle is incredible, When asked how she has fitted success in the industry. I think it’s “Then I worked for a manager so it’s always been about making all of this into her day job, she also an opportunity for the AA to who was a big advocate for me, sure we get that story out there so smiles: “I think it’s normal early on recognise the importance of the which helped. And without the at least people understand,” she told in your career to work hard to get industry and what it provides for support of my husband, Larry, I Autofile. “If they do, then they can ahead, but over the past few years consumers is vital information couldn’t have achieved what I have.” hopefully make good decisions. I’ve tried to ensure that I achieve about new cars.” Stocks has worked in the “I do think people are more good work-life balance.” Stocks isn’t one to sing her industry her entire life. Her career aware now if you look at the One of the highlights of the own praises. And she tries, mostly in the UK included working for Fiat information manufacturers and automotive calendar since 2004 successfully, to avoid the media Lancia as a technical adviser and distributors put out on cars. They has been New Zealand Car of spotlight when it comes to then as an instructor, training the quote the ANCAP rating. Ten years the Year Awards with its lavish personal matters. two marques’ dealer, technical, 

10 www.autofile.co.nz news

The NZ Car of the Year in 2018 was the A-Class. Pictured with Stella Stocks are then general manager of Mercedes-Benz, Ben Giffin, holding the trophy, and Greg Cassidy, of NZME

Stocks is passionate about car safety, and being a council and board member of ANCAP, which crash-tests vehicles

t service staff and management. Stocks studied at the University changes when they come along”. As for Stocks, she’s grateful for After moving to New Zealand of Auckland and graduated with a Her current boss, chief the fantastic relationships she has with her Kiwi husband in 1981, diploma in business. executive officer Brian Gibbons, developed across the industry. she worked for Subaru NZ as a Next was the AA, where she says: “Stella has had a ground- “I’ve enjoyed my two decades technical adviser before becoming started as national manager breaking career in the industry. with the AA, and I look forward its national service manager. before being promoted to general She has an extensive list of to seeing the continued growth This was followed with manager of motoring services. her achievements at the AA in and development of work already 12 years at Nissan NZ – first Along the way, many terms of vital services she’s been completed in motoring services. as national service manager, challenges have faced the AA, instrumental in developing and I’ll still be following what goes on and then general manager for “but we always looked at them as overseeing. We would like to in the industry. If there’s anything after-sales service and customer opportunities and we worked hard acknowledge and thank her for I can do to help it, then I will satisfaction. At the same time, to help support Kiwis navigate the legacy she leaves behind.” because I just love it.” TIME IS RUNNING OUT NON-ESC VEHICLES MUST BE BORDER CHECKED BY 1 MARCH 2020

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www.autofile.co.nz 11 news

IN BRIEF Finance company t Call for legislation to be properly enforced faces court action The Financial Services Federation (FSF) says the government can do more to target predatory lenders tainting the sector. he Commerce Commission challenge the categories of costs Kris Faafoi, Minister of Commerce and Consumer Affairs, has released has filed high-court UDC has sought to recover in its further proposals to protect borrowers, including a 0.8 per cent per-day proceedings against UDC late-payment fees. Instead, the issue cap on interest and fees. TFinance Ltd for allegedly charging relates to the way in which UDC “This cap equates to an effective finance rate of 292 per cent per unreasonable default fees. averages costs across borrowers annum, which is still high-cost lending in anyone’s terms,” says Lyn It claims the company offered and whether separate averages McMorran, the FSF’s executive director. consumer loans of $10,000 or should be calculated by reference to “This isn’t the market our members operate in, but we want to ensure more over one to five-year terms, differing periods of default. reforms make a targeted difference when harm is being done and will typically secured against assets “Following a long and open be enforced to stamp out dodgy lenders.” such as vehicles. dialogue, the commission is The FSF believes parameters for payday lending need to be defined The regulator alleges its now looking to the courts for a by law with providers on the Financial Services Providers Register to aid dishonour fees and late-payment declaration on the matter.” enforcement. fees were unreasonable in that they Percival says the finance Further proposals include mobile traders having to check credit is exceeded the company’s reasonable company believes its fees suitable and affordable for customers, and help them make informed costs and estimate of losses. fairly and reasonably recover decisions before signing up. The dishonour fee was levied underlying costs it incurs, and the The FSF adds extra legislation will make no difference unless properly by UDC if a scheduled payment law allows it to charge them on enforced by a sufficiently resourced Commerce Commission. was missed and it charged the the basis it does. late-payment fee if the customer He adds: “UDC will continue Marque to change its branding – and sex failed to make payment seven to engage with the commission About 70,000 logos at some 10,000 days after it was due. to see whether we can reach an Volkswagen dealerships and service The commission alleges each agreement that resolves this issue. partners in 154 countries will be fee exceeded UDC’s costs and “UDC takes its compliance changed in what the marque says is estimated losses associated with a with any legislation seriously, one of the largest brand revamps in missed payment or with a seven- and followed a robust process in automotive history. day default respectively. setting fees – including dishonour The company describes its new The late-payment fee was and late-payment fees – to ensure logo as “more modern and clearer”, calculated by including recovery they are fair and reasonable.” while its design is two-dimensional for costs UDC didn’t actually incur Percival says the company flexible use in digital applications. until much later, if at all, says the regularly reviews its charges It will be illuminated on vehicles regulator. to ensure compliance with the and at brand locations, but there The dishonour fees alleged CCCFA and this review process will be no architectural changes to to be unreasonable were has seen UDC reduce a number of dealerships’ interiors. charged between June 2015 its fees. To date, Volkswagen’s logo has and September 2016. The late- The Commerce Commission been blue and white, but a new payment fees alleged to be and UDC will not be making lighter tone of blue, above right, unreasonable were first charged further comment as the case is allows for colour variants. in June 2015. before the courts. The changes will be rolled out first in Europe. The rest of the world The commission is seeking a This matter and several others follows in 2020 with New Zealand in February. declaration that UDC breached follow a supreme-court ruling in Volkswagen is now a different sex, as well. For several decades, it has the Credit Contracts and 2016 in favour of the commission used a male voice to present its vehicles and in advertising. The marque Consumer Finance Act (CCCFA) in the Sportzone-MTF case. says it will “now become female”. by charging unreasonable fees The court held that credit and is seeking orders for affected fees can cover only costs “closely Concerns over yen appreciation and tax hike borrowers to be compensated. related” to loan transactions. The Japan Automobile Manufacturers’ Association (JAMA) wants the As for UDC, it is considering It found the CCCFA “indicates a government to bolster the industry’s competitiveness over the mid to the notice of civil proceedings transaction-specific approach” to long term by tackling taxes and deregulation. and is assessing its options. setting fees. “It is not permissible Chairman Akio Toyoda made the call following the reshuffle of the “For some time, UDC has been to take all operating costs [or prime minister’s cabinet on September 11. working with the commission to virtually all] and allocate them to “Uncertainty surrounding our industry remains due to factors explain how UDC determines the one fee or the other. including recent yen appreciation and the impending consumption-tax reasonableness of its dishonour “The consequence is many hike,” says Toyoda. and late-payment fees under the costs incurred by a credit provider “Among JAMA members, a sense of crisis has emerged that it will CCCFA”, says Wayne Percival, chief will not be referable to particular become increasingly difficult for our industry to protect employment if executive officer. transactions and will have to be the domestic market and production continue to shrink.” “The proceeding doesn’t recovered in the interest rate.”

12 www.autofile.co.nz news

www.autofile.co.nz 13 EV focus Returns on electric car investment

any purchasers of and go for years without the first alternatives are of Nissan Leafs monitored by Flip electric vehicles (EVs) your attention. estimated to cost about The Fleet over the past three years, are attracted by their Nissan Leafs may be $15,000. we observe a depreciation of about Mlow running costs. Others are put a worst-case scenario for On average, Leaf $1,700 per year of age, $240 per off by their high sticker prices. EV-battery limitations. batteries fade at three 10,000km travelled and $570 for If we just consider financial return They have early per cent each year, each 10 per cent drop in battery on investment and think long term, technology and so are which is encouraging for state of health (SoH). who has made smarter choices – the less efficient. return on investment. But we need to be careful with early adopters or EV naysayers? Leafs have relatively Henrik Moller, co-founder, However, there’s an interpreting these values because Flip The Fleet It comes down to four main limited ranges even when added complication. At age, SoH and the odometer interlinked unknowns. How long new, so any battery fade has some time, it’s likely to reach a reading are all highly correlated. All will an EV’s body last compared to more impact on their long-term tipping point when they rapidly this means we can’t be sure which an equivalent-sized vehicle with usability and their batteries need get harder to charge and can factor drives falls in resale prices an internal combustion engine replacing sooner. hold less energy – just like with us the most. (ICE)? How often will electric cars’ Their batteries aren’t protected humans. The simplest model just batteries have to be replaced? by thermal management – they The oldest Leafs are now eight considers age of the car. In round What will each new battery cost? heat up when being charged and years old. They show no signs terms, we reckon you should count And what will the resale value of when the car is travelling, and this of greatly accelerated battery- on a $2,000 loss of value for every an EV be compared to an ICE if accelerates capacity fade. capacity fade, but we don’t know year a Leaf is on New Zealand roads. you decide to on-sell before each So far, Nissan has declined to when that tipping point will arrive. The annual loss of $2,000 value is scrapped? provide replacement batteries Resale values are likely to reflect from a $30,000 to $20,000 asset is Most people predict EVs will for second-hand imports and a combination of sticker prices, way less than the 21 per cent a year remain usable for a lot longer than longevity and battery concerns, linear depreciation rate allowed for their ICE cousins but also supply and demand in the by the IRD. – some pundits future market. This disparity contributes to are claiming When we plot the purchase cost a splendid return on investment a Tesla will be for a near-new Leaf by a business, effective for more PurchasePurchase cost cost of ofNissan Nissan LeafsLeafs especially when you consider it’s than two million likely to cost one-quarter as much 50,000 kilometres. as an equivalent ICE to fuel and In truth, we maintain. can’t be sure how long new EV 40,000 Demand for EVs is definitely technology will last. We’re going to ramping up. At some stage, a need another 20 years to find out if 30,000 correspondingModel drop in resale the EVangelists are correct. values 24kWhof ICEs will kick in, so we Their confidence comes from think favourable EV on-sell rates 20,000 30kWh the relative simplicity of electric will continue. Purchasemotors. Each cost hasof Nissan less than Leafs 100 So what’s the bottom line? Purchase price ($) 50,000 moving parts compared to more 10,000 Some uncertainty remains, but the

40,000 than 1,000 in a combustion engine, financial return from EV ownership so fewer things to break in an EV. 0 already looks good and it’s likely to 30,000 Model Electric motors don’t get as 24kWh 2 4 6 8 get even better. 20,000 hot and vibrate less than ICEs, so 30kWh Age in years Henrik Moller is a retired sustainability Purchase price ($) 10,000 there’s less rubbing between parts Purchase costs compared to age of 827 Nissan Leafs owned by Flip The Fleet participants. scientist. Additional contributions by and less need for lubrication. Just A straight-line model fits the data best, and there’s no evidence 30kWh and 24kWh variants Dima Ivanov and Daniel Myall. Visit www. 0 think of your freezer – it should go depreciate at different rates flipthefleet.org. 2 4 6 8 Age in years

Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price listed on Trade Me last month: for the month: Eye on EVs -3.0% +6.0% -25.3% -2.5% +0.9% +2.3% • Nissan Leaf • Hyundai IONIQ $25k • Nissan e-NV200 • Volkswagen Compared to Compared to Compared to Compared to Compared to Compared to • BMW i3 e-Golf last month prior year last month prior year last month prior year * Figures as per the end of September 2019

14 www.autofile.co.nz EV focus Power companies back minister

ercury has welcomed He adds Genter’s proposals more Kiwis to buy EVs using price houses to the grid, so we have proposals for clean have benefits for the country’s incentives. known for some time that surging car standards and carbon emissions and advantage New Zealand’s largest electricity EV uptake will put unprecedented Mdiscounts, which have been tabled drivers because powering EVs distributor says it has worked with pressure on the country’s networks by Julie Anne Genter, Associate with renewable power costs local and central government – particularly if people arrive home Minister for Transport. the equivalent of 30c per litre for many years to highlight the after work and start charging their The energy company says compared to petrol. role such companies will play in cars at the same time. independent reviews confirm the “[Our] research shows the enabling EV uptake. “With half of the country’s EVs most cost-effective action to cut majority of New Zealanders see EVs Andre Botha, Vector’s chief owned by Auckland residents, Vector emissions in New Zealand is to as the way forward with almost half networks officer, says: “Some fast has embraced a technology-led replace fossil fuels in transport with of adults considering purchasing EV chargers installed in homes approach to network management renewable electricity. one in the next two years. These can add the equivalent of seven and planning to prepare the city for “These proposals are positive proposals will help buyers make the rise of EVs and other energy- steps, offering support and the best choices.” Total EVs by region system challenges.” encouragement for the uptake of Whineray welcomes the Northland 490 Vector is currently trialling electric vehicles [EVs],” says Fraser government’s “pragmatic Auckland 6,382 multiple 50kW rapid EV chargers Whineray, Mercury’s chief executive. approach” to implementing its Waikato 794 to cater for the Auckland region’s Bay of Plenty 536 He adds the government’s ideas clean car proposals by phasing in growing fleet of electric cars, and Hawkes Bay 246 recognise 85 per cent of electricity obligations and giving flexibility to build understanding of how Gisborne 53 supply is already renewable – a to participants to manage impacts Taranaki 218 charging technology impacts on the significant advantage when across their operations. Manawatu/Wanganui 499 network. compared to many countries “We look forward to working Wellington 2,246 It has also invested in software- transitioning to electric cars. constructively with the government Nelson/Marlborough 564 management systems to help “New Zealand has enough and business community towards Canterbury 2,446 reduce the impact residential EV renewable electricity generation the proposed introduction of the West Coast 25 chargers have on peak demand, already consented to power the proposals in 2021.” Otago 955 and is exploring the potential of Southland 126 entire light-vehicle fleet,” enthuses Vector has also welcomed vehicle-to-grid and vehicle-to- Source: Ministry of Transport, September 5, 2019 Whineray. Genter’s ideas to encourage home chargers.

MonthlyMonthly light light EV EV registrations registrations - new- new and and used used import import EV percentage share registrations 700 2.50% 650 Used light New light 2.25% 600 550 2.00%

500 1.75% 450 1.50% 400 350 1.25% 300 1.00% 250 200 0.75% 150 0.50% 100 50 0.25%

0 0.00% Jul Jul Apr Apr Oct Oct Jun Jun Feb Feb Jul Jul Jul Aug Sep Aug Sep Aug Mar Mar Nov Dec Nov Dec May May Mar Mar Mar Nov Nov Sep May May May Sept Jan 2018 Jan 2019 Jan 2017 Jan 2018 Jan 2019 Source: MoT, September 5, 2019

www.autofile.co.nz 15 monterey car week

Futuristic roadster wows richlisters

onterey Car Week is an unnamed vision of the future. dihedral doors reflect the vehicle’s the world’s most-powerful series t annual pilgrimage for Chief executive officer Mike singular purpose as a thrill to drive. production road vehicle. fans of prestige, luxury Flewitt revealed a design rendering While designed more for the It has been designed and Mand performance vehicles from of a striking roadster, above, set to road than track, the new model engineered in the UK, and will be across the world. make its debut in 2020 with a strictly will utilise McLaren’s trademark produced at Hethel – the home of The event in California is where limited production run of 399 units. carbon-fibre construction to make Lotus since 1966. the super-rich blow upwards of The Ultimate Series McLaren it the lightest car ever produced by With production limited to a $50 million on classics and it’s two-seater with an open cockpit the marque, and it will be powered maximum of 130 units, the Evija inevitably one-percenters who will differ from the Senna’s focus on by a version of the Senna’s twin- has been one of this year’s most jostle to sign purchase contracts being the “ultimate road-legal track turbocharged V8 engine. eagerly anticipated new cars and being dangled under their noses car”, and the Speedtail’s high-speed “We’re consistently pushing the visitors at Monterey had a chance for new models. aerodynamic efficiency and “road- boundaries at McLaren Automotive to see its striking design for This year it was McLaren that focused driving pleasure”. to deliver the purest and most- themselves. got tongues wagging and bank Classical roadster proportions, engaging driving experience “The Evija is an outstanding balances checked for its, as-yet, elegant lines and low-profile whether for road or track,” says and exceptional car,” says Phil Flewitt. “This addition to the Popham, the marque’s chief Ultimate Series will take driving executive. “It has been designed pleasure to new levels.” and engineered to put Lotus back Coming to market late next on the map as the innovator and year, the new model is likely to be technical leader that it is.” VEHICLES WANTED priced between the Senna and Speedtail, which retail from $1.4m BIRTHDAY SHOWCASE DEALERS BUYING NOW and $4m respectively. Infiniti returned to the Pebble Beach Concours d’Elegance – the LEADER IN INNOVATION charitable event that’s the finale The all-new Evija also made of Monterey Car Week – as the VEHICLES WANTED its North American debut in Japanese luxury brand continues All Audi, Porsche, Jaguar, Land Rover and Volvo Models Monterey as the first stop on its to celebrate its 30th anniversary. high-profile world tour. As a part of this milestone, The first all-electric British the marque unveiled its Edition hypercar is also the first Lotus 30 models – a line-up of specially

Jeﬀ Dacombe . 021 532 355 . jeﬀ[email protected] with an electrified powertrain equipped and trimmed versions of and its first new model since the Q50, Q60, QX50, QX60 and QX80. China-based automotive group They feature exterior design Geely took control of the marque touches, such as dark-chrome LATE MODEL FORDS & MAZDAS WANTED in 2017. grille surround, fender trim Being touted as a “technical and rear finisher. Similar black tour de force”, the Evija has a target treatment is seen on side-view output of 147kWh, and is set to be mirrors and wheels. 

Infiniti’s Edition 30 range Call Jason Robb Ph 0274 133 222

To advertise here, contact: [email protected] or ph 021 455 775

16 www.autofile.co.nz monterey carnew week cars

The all-electric Evija...... and inside the Lotus supercar

t The variants have claimed warning, intelligent temperature “return to the spirit of traditional metallic sheen, and a contrasting world-first driver-assistance control and a pedestrian-collision grand touring with space, comfort leather to complement the technologies typically part of the warning system. and usability”. exterior colour. ProAssist pack that Infiniti has From its new global design centre Complementing the exterior are The McLaren GT sports brought to market. at its headquarters in Shenzhen, bespoke satin graphite-iron brake a 456kWh four-litre, twin- These include intelligent cruise BYD has developed a “five-four-two” calipers from McLaren Special turbocharged V8 with a seven- control, distance-control assist, strategy for the Tang. Operations (MSO). speed sequential sports gearbox. around view monitor, back-up No, it’s not a team formation in While most MSO show cars The 0-100kph dash is achieved collision intervention and predictive football. It means a 0-100kph speed focus on the exterior, its bespoke in 3.2 seconds with 0-200kph forward-collision warning. of less than five seconds, having creativity comes to life inside notched up in nine seconds. The Edition 30 line-up is expected four-wheel drive and consuming no with stitching inspired by the A defining element is its to soon start arriving at dealerships more than two litres of fuel for every geometric canopy design of the “dynamic prowess”. The bespoke worldwide as 2020 models. 100km driven. British Museum being applied suspension, steering and brakes The Tang 600D BEV has a New to the seat backs, sun visor, door are optimised for drive experience BUILDING ELECTRIC DREAMS European Driving Cycle range cards and armrest. with responsiveness and precision, BYD made its debut at Pebble Beach of up to 500km using an Interior materials include flux- with the GT’s ride comfort “setting by showcasing its innovative battery 82.8kWh battery pack. It’s white leather, which contains a new McLaren standards”. electric vehicle (BEV) called the Tang. expected to retail from $65,500. The marque, whose initials stand for “build your dreams”, has yet to GRAND-TOURING SPIRIT crack the US market, but is aiming To wrap up Monterey Car Week, it’s to make in-roads there and globally. back to where we started at and The luxury SUV’s features include that’s with McLaren. adaptive cruise control, automatic The company says its new GT, emergency braking, lane-departure priced from about $327,000, will Pricing mayhem at auction

The McLaren GT

BYD’s Tang, an electric SUV

Sotheby’s was left red-faced after a blunder prevented a Nazi car  designed by Ferdinand Porsche from going under the hammer at Monterey Car Week. The much-anticipated sale of the 1939 Type 64 was thrown into chaos when the Dutch auctioneer started the bidding at $13m. But this came up as $30m on the screen due to his accent. Bidding rose to $17m, which was displayed as $70m. The confusion led to the controversial silver coupe being pulled from the auction after expected to sell for some $20m. The 1939 Type 64, pictured above, was one of three cars commissioned by the Nazis and built by Porsche for a race through the heart of Fascist Europe from Berlin to Rome that never eventuated.

www.autofile.co.nz 17 newslooking back The months that were... emissions

OCTOBER 13, 2006: EMISSIONS- TESTING TRIAL COMPLETED

21 October 2010 The Ministry of Transport (MoT), AA IMVIA seeks deferral of emissionThe voice of the auto industryrule The ImporT ed Motor Vehicle Indust ry Association (IMVIA) where they express support for has prepared and submitted deferment. an unsolicted submission to would be lost. “What we want to The IMVIA’s chief executive Transport Minister Stephen Joyce do is point out to them the cost of David Vinsen say on the final phase of the exhaust s th failing to change the rule, that the David Vinsen and JEVIC teamed up to ascertain implementation of theat deferringnext phase the emissions rule. costs are likely to be both human of the Rule is the pragmatic solution and financial. Everyone understands The submission says that the to the problems implementation of the final phase outlined. that business as usual would achieve “The Government is well aware of will be the most severe yet, and just the same sort of goals, but it’s the issues surrounding the exhaust will result in job losses across the pride and hubris and inertia that’s emissions rule. As you can see from industry. It seeks that the rule be meant the rule has Eric Roy’s comments when he was n’t been deferred.” deferred for two years. the emissions of 3,000 used cars in Opposition, they understand well The IMVIA’s submission The appendix of the submission the futility of the rule.” also contains correspondence estimates that based on imports Vinsen says that rather than from National MPs Maurice to date, 93,000 used vehicles focussing on the technical issue will be imported thi Williamson and Eric Roy, at a time 45,000 and 60,000 units in the 2012 of how best to improve the fleet, s year, rising when National were in Opposition, to between 95,000 and 110 the submission looks at the impact calendar year. units in 2011. It further estimates,000 on businesses, and the jobs which This will impact heavily on that implementation of the rule the industry sa bound for New Zealand. will see imports drop to between ys the submission, What National said in '07 as have past phases of the rule. “Businesses involved in the used In a letter sent to an IMVIA example of poor policy being foisted member, dated July 24, 2007 the on the people of New Zealand.” vehicles for longer. for a delay in the implementation National MP for Invercargill Eric And on October 24, 2007 the date and a slightly slower rate of That same month Roy put National MP for Pakuranga Maurice Roy described the emissions rule pro out a press release titled “More gression. (then at a draft stage) as “another Williamson wrote an email that he Government Policy creating more Williamson says the issue “was se The trial consisted of tailpipe example of poorly thought out nt to all National MPs, with the canvassed extensively at Caucus,” pollution and more costs.” In the Labour policy.” In the letter Roy subject line “National agrees with the release Roy said the Japanese and that National agrees with also calls the rule “ridiculous”, IMVDA view on Emission Standards.” emission reduction example the IMVDA: “if the new Rule is and recognises that it will have a In the email, described as A should be followed, with a staged implemented - cars will become major impact on business as well brief note on where National stands introduction to reduce exhaust more expensive in New Zealand as causing motorists to retain on Vehicle Exhaust Emissions Rule, emissions. “It’s not feasible to - consumers will hold on to Williamson says unequivocally that in one fell swoop, and is yet another do this model cars for longer - and theolder National agrees with the then- tests before vehicles were perverse impact will be for a drop IMVDA’s position, which was to call in the emissions standards of our vehicle fleet not an improvement.” BUY BELMONTS continued on page 8 shipped. Those meeting the SELL STATESMANS Upsell for profit

Driving S oluti ons www.rve.co.nz standard received an AA-JEVIC // 0800 RETRO 4 U “emissions tested” window sticker with many complying with News about exhaust emissions seems to happen often in October Japanese standards. Stella Stocks, of the AA, said editions of Autofile. Here’s a look at stories from years past the association wanted to provide motorists with real information a regulated sales-weighted fuel- National supported a staggered OCTOBER 21, 2010: DEFERRAL OF on used imports to inform buyers economy standard for new and roll-out of the rule from January 2009. RULE SOUGHT about their choices. used stock. The Imported Motor Vehicle Iain McGlinchy, the MoT’s The Imported Motor Vehicle OCTOBER 17, 2008: NO REPRIEVE Industry Association (IMVIA) principal adviser – environment, Dealers’ Association (IMVDA) FOR EMISSIONS RULE presented an unsolicited said the data would help recognised the desirability and In August, the IMVDA asked the submission to Stephen Joyce, determine the future direction of need to upgrade the fleet, but government to consider deferring Minister of Transport, on the final any emissions-based policy. opposed a rolling age ban on used the implementation of phase two phase of the emissions rule. “Misconceptions exist as to imports “in isolation”. of the exhaust emissions rule, which It stated the last stage would the standard and quality of used was to go into effect in February. be the most severe yet and result vehicles imported,” he added. “We OCTOBER 26, 2007: NATIONAL The first phase stopped used in job losses across the industry. It don’t want to bring in junk. We’re OPPOSES EMISSIONS RULE diesel commercials being imported asked for the rule to be deferred for pleased to see from preliminary The opposition was standing and cut used petrol-vehicle two years. results the number of vehicles behind calls to delay implementing imports by up to 30 per cent. It The IMVIA’s chief executive, that passed.” exhaust-emission standards, saying was predicted total used imports David Vinsen, said the it backed a slower rate of rule could be as low as 85,000 for 2008 government understood the OCTOBER 20, 2006: GOVERNMENT progression. – down from 132,000 in 2007. futility of the rule. He estimated CONFIRMS LOOK AT BAN Maurice Williamson, transport Stage two was to come into 110,000 vehicles would be A seven-year age ban for used spokesman, said National wanted effect in January 2009 and would imported in 2011, but when the imports and a bid to cut emissions to improve the fleet’s emissions limit imported petrol vehicles to rule came into effect that imports were on the cards after the standards, but understood it could those made to the Japan 00/02 would drop to between 45,000 government unveiled measures to only be phased in over a realistic standard. It was estimated this and 60,000 in 2012. improve the fleet’s fuel economy to time frame. would reduce used imports to as The submission stated: combat climate change. He said: “The IMVDA advocates low as 52,000 for 2009. “Businesses involved in the “New Zealand imports all if the new rule is implemented, cars The IMVDA said its expected industry have had to make its vehicles so we have the will become more expensive and effectiveness in reducing noxious adjustments, including opportunity to select the best, not consumers will hold on to older gases by improving the fleet retrenchment of skilled staff and the mediocre,” said Judith Tizard, models for longer, and the perverse would be compromised by a closures of branches to deal with Associate Minister for Transport. impact will be a drop in emissions large reduction in used imports the effects of the rule, such as The government directed the standards of our fleet – not an combined with a drop in older wildly fluctuating volumes of MoT to work with the industry on improvement. We agree.” vehicles being scrapped. used imports.” Don’t go searching for news. Let the news come to you.

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Gearing up for awards Talking finance

ehicle technology will be hris Faafoi, Minister for put under the spotlight at Commerce and Consumers this year’s New Zealand Car Affairs, is one of the guest Vof the Year Awards as the AA and Cspeakers at the Financial Services Driven aim to provide fresh insights Federation’s annual conference. about what’s on the market. He will give a progress report Backed by a panel of judges on the Credit Contracts Legislation from around the country, 10 Bill. Other speakers include Oliver finalists will contend for the title at The 2018 NZ Car of the Year was Mercedes-Benz’s A-Class Hartwich, executive director of the a cocktail event in December. New Zealand Initiative, and Kirsten “This year, more electric buying more traditional vehicles score from the driver’s seat,” she Patterson, chief executive of the vehicles [EVs] than ever before want to ensure their choices are says. “That’s the only true test.” Institute of Directors. have been launched,” says Stella truly fuel-efficient. That will also Category winners will be selected The event at the Grand Stocks, the AA’s general manager be a consideration for the judges, from all new vehicles available for Millennium, Auckland, on of motoring services. “We believe alongside other variables we look sale in this country from October 1, October 16 has the theme of it’s important to test them and at in real-world conditions.” 2018, to September 30. “setting tomorrow’s standards” give the best advice on how they Driven’s editor at large and In addition, there will be a safety with the spotlight on conduct, stack up. chief judge, Liz Dobson, says Kiwis award for the car with the highest culture and ethics. “At the same time, the will be part of the behind-the- ANCAP score of vehicles tested There will also be a gala government has signalled it may scenes action across print, digital in the judging timeframe, the EV dinner and the presentation of slash the price of imported electric and video as the panel puts all and plug-in hybrid gong and the the Crediting Excellence Awards, and hybrid vehicles by up to $8,000 entrants through their paces. people’s choice award selected with categories for new finance to make green cars cheaper, which “Each contender goes through from the top 10 finalists that professional, outstanding support is attracting interest. on and off-road stages, which give receive the most votes from the person, leadership, innovation and “We know New Zealanders the judges the opportunity to public via an online campaign. outstanding corporate citizen.

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www.autofile.co.nz 19 ADTORQUE EDGE ‘Always on’ key to modern advertising

onsumer behaviour is the top of search results industry, because and touchpoint audience-building, ever-changing and in the based on the keywords it gives customers makes for a highly qualified group automotive industry it’s typed in and by the detailed views of of prospective customers who are becomingC increasingly evident that, user’s geographical vehicles from the seeing the adverts. unless dealers adapt with customers’ location. comfort of their own expectations, they will be left behind. A dealership’s computers. BE PRESENT AND VISIBLE We’ve all heard the stats. messages and listings From 2016-19, Today’s customers are curious, According to Google Data, 93 per are vital at this stage, Google Data reported demanding and impatient. They cent of car purchases today are as are the right TODD FULLER a 65 per cent increase want instant gratification, which digitally influenced. Customers offer and clickable General manager in watch-time of is why, when looking to purchase, are researching more and they conversion points. AdTorque Edge NZ test-drive videos on one-in-three smartphone users end can have as many as 130 digital For example, by using a click- YouTube. It also found that 72 per up buying from a brand other than touchpoints before purchasing a to-call phone number, a customer cent of people attributed a portion the one they intended, reports vehicle, report Google / Verto. All is able to easily become engaged of their car-purchasing decisions to Google Data. this means dealership visits have and interact with the business. online video, according to Auto CB. This means that if your dropped from five per sale to two. Display network and social Not only do these findings dealership is presented to So, how should dealerships be advertising also play an important highlight the importance of customers at the right time and advertising in this tough market role in getting a dealership’s brand dealerships producing video is providing the information that to ensure they are reaching in front of potential clients, as well promotions of their vehicles, they they want, they are highly likely to potential customers before their as retargeting those who may have also point to a highly engaged engage you rather than one of your competitors do? shown some earlier interest. audience on whom paid video competitors. But, the converse is The answer is, to be “always on”. The sophisticated advertising can be also true and competitors could be Dealers need to shift their mindsets targeting extremely effective. taking business from you.

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20 www.autofile.co.nz news ‘Always on’ key to modern advertising Vehicles’ waste on agenda nd-of-life tyres (ELTs) are markets for old tyres. proposed WMA regulations. back on the government’s With much support for a The ELTs scheme may include radar as one of six stewardship programme, the all air-filled tyres and certain solids proposedE priority products. automotive industry criticised used on motorised vehicles from And the automotive industry is the ditching of the self-funding cars to aircraft, and pneumatics likely to be drawn into two others scheme after it was promoted by and solids on bicycles and non- as well. One will be lithium-ion Amy Adams, Smith’s predecessor. motorised equipment. batteries, which come under The total volume of tyres – from As for e-waste, there’s scope for a the category of electrical and the likes of cars, trucks and aircraft – scheme including large rechargeable electronic products – collectively that come to the end of their useful batteries used in electric cars, known as e-waste. lives in New Zealand annually is household-scale and industrial The third is refrigerants and equivalent to more than 7.75 million renewable-energy power systems other synthetic greenhouse “Product passenger-tyre equivalents – or including, but not limited to lithium- gases (GHGs), which include stewardship is about 73,700 tonnes. ion batteries, and batteries from hydrofluorocarbons (HFCs) used in Consultation on the way forward hand-held tools and devices. air-conditioning units. the cornerstone resulting from Sage’s announcement As for refrigerants and synthetic Other priority products being of developing a will inform a framework for the GHGs, gases used for heating, proposed are agrichemicals and co-design of regulated product cooling and air conditioning their containers, farm plastics, and circular economy” stewardship schemes. classed as ozone-depleting in packaging used for beverages and - Adele Rose, chief A two-stage process is proposed. the Ozone Layer Protection Act – single-use plastics. executive, 3R Group The first is consultation followed by and or synthetic GHGs under the Once granted priority-product ministerial guidelines on expected Climate Change Response Act and status, regulated stewardship no free-riders in these proposed scheme outcomes and attributes. products containing these gases – schemes would make producers categories,” says Rose. Stage two involves consultation, as well as methyl bromide, may be responsible for them at end of life. “3R is developing stewardship by product group, until 2021 on included in a scheme. The government says this programmes on behalf of would ensure the costs of proper stakeholders for many of these waste management are paid by proposed priority products. producers and consumers, not Projects are already under way for communities and the environment. ELTs, refrigerant gases, rigid food If this all sounds a bit familiar and beverage packaging, and when it comes to old tyres, it is. lubricant packaging. Last year, Autofile reported how “Product stewardship is the organisations in the motor-vehicle cornerstone of developing a industry backed reviving product circular economy. It encourages The AA is recruiting for a General Manager stewardship for old tyres after years waste to become a resource, and of Motoring Services, you may have read the of research was canned. forces change further up the The umbrella Tyrewise Working supply chain by looking at design, featured story on Stella Stocks on page 10 Group was relaunched to update manufacture and material use.” its work, which is providing a For example, a stewardship If you are interested in finding out more framework for an industry-led scheme for ELTs could see the cost of scheme for ELTs disposing them built into purchase about this amazing opportunity then please Adele Rose, chief executive prices. Fees could be used to contact Aman Dhaliwal, AA Employer of Hastings-based 3R Group, incentivise end markets, and process Brand & Talent Manager which oversees Tyrewise, says the and collect tyres to end stockpiling, recent announcement by Eugenie illegal dumping and landfilling. Sage, Associate Minister for the Tyrewise, whose members Email: [email protected] Environment, on making multiple include the Imported Motor Vehicle industries accountable for the six Industry Association, Motor Trade possible priority products is long Association and Motor Industry Applications close - 19 October 2019 overdue. Association, started its work She describes the consultation in earnest in 2012 to provide a A full position description is available on our document as “most significant” in framework for ELTs. terms of making use of the Waste It was presented to then- careers website Management Act (WMA). Minister for the Environment, Nick “This move by the government Smith, in August 2013. Instead, careers.aa.co.nz will strengthen and broaden work the government opted for an being done by ensuring there are investment strategy to secure

www.autofile.co.nz 21 tech report Bring low performers up to speed

few years ago, I attended In mulling this over, I For the same price of should we continue focusing on a talk given by Malcolm considered performance the single great player, replacing the best performers with Gladwell, the Canadian is a measure of how it’s possible to replace even better – and more expensive Ajournalist, author and public successfully the vehicle many of the bad ones – performers? Or should we focus speaker. He highlighted his does its job with with average players. In on replacing the poor performers hypothesis about strong-link minimal output on football, this has a great in the fleet with anything that’s versus weak-link systems. carbon dioxide (CO2). effect. In basketball, not better at a much lower price? The illustration he used Similar to the so much. In other words, should we add compared the different ways to sports teams, we are KIT WILKERSON Comparing this a few strong links or minimise the improve the performance of sports comparing our fleet Policy adviser and analyst to efforts to improve number of weak links, especially [email protected] teams, specifically basketball versus to the fact that higher the efficiency of our considering the restraints of cost football, also known as soccer. performers cost more fleet, would we get and supply? Gladwell showed the effects on and supply is more limited. the best results by replacing our What’s needed are efforts team performance by replacing One of the challenges best performers with even better to increase the performance of players on teams with those of preventing the uptake of electric performers or by replacing our the lowest performers. This, the varying abilities. vehicles (EVs) – that may be worst performers with average or analogy suggests, would make a In basketball, a strong-link the ultimate performers in this better performers? bigger dent into the problem of team sport, it was shown that the example – is the limited supply and It’s also relevant to consider fleet efficiency than increasing the best gains were made by replacing high initial purchase prices. the costs. If we spend the same performance of what are already the best player with an even our highest performers. better player. Of course, this debate doesn’t Football, a weak-link team sport need to be all about the vehicles. on the other hand, was shown “The best solution would be to replace Our measure of performance was to get the most improvement by the entire fleet with the best performers, based on minimising CO2 output. replacing the worst players with There are other ways to do better ones. but economically that isn’t feasible” this besides adding more efficient The explanation for this vehicles. We can, for instance, dynamic is easy to understand. In basketball, replacing any amount either way, how can we spend resources on extra training Basketball is more of a one-person player with a strong one can have a maximise the effect? How many for our poorest players. Teaching sport. The best player doesn’t dramatic effect on the performance of the best performers could motorists to drive more efficiently need anyone else to touch the of the team. In fact, as is often seen we afford compared to average might go a long way toward ball to win, therefore a basketball in the NBA, adding a “superstar” to performers? reducing our carbon emissions and team doesn’t improve much by a team can dramatically improve it. Of course, the best solution might even make our roads safer at upgrading the weakest links. This is so much the case that would be to replace the entire the same time. In football, it’s rare that a single the results are the same as if the fleet with the best performers, No matter what we do, one thing player can move the ball from one previously best player on a team but economically that simply isn’t is obvious. And that’s ignoring the end of the field to the other and was replaced by that superstar. This feasible. weakest links within our fleet will score. Many players touch the ball to illustrates how little effect the rest Some recent government doom our team to failure. make a goal while the weakest links of the team has. proposals include feebates and Currently, the only deterrent is drag down the rest of the team. Football teams, on the other standards. But these are only a small carbon tax on fossil fuels, That got me thinking about hand, are usually composed of a mix targeted at the vehicles being a tax the Productivity Commission the best ways to improve the of great, average and bad players. added to the fleet, which – when describes as “so low as to make the efficiency of our vehicle fleet – Replacing the strongest players on our roads – will already be in the scheme ineffectual in changing should we be focusing our efforts with better ones has a much smaller upper end of performance. firm and household behaviour”. on improving the most-efficient or effect. It’s more effective to improve The question then remains. What is the purpose of this if it least-efficient cars? or even replace the worst players. Given limited economic resources, doesn’t deter usage?

Advocate  Advise Advise  Connect • Advocate • Connect

Imported Motor Vehicle Industry Association

www.via.org.nz

22 www.autofile.co.nz news Tough new rules to stop bugs

iosecurity New Zealand GDP losses from a major infestation has sent a stark message to could top $3.6 billion by 2038. shipping companies, agents It says living standards could andB importers that all cargo must fall by up to $2.8b over two meet stricter regulations intended decades as employment and to keep brown marmorated stink real wages drop, while the value bugs (BMSBs) out of the country. of horticultural exports could The Ministry for Primary plummet by $3b during 10 years Industries (MPI) has issued new and $4.2b over 20 years. rules, which require the off-shore Experts say BMSBs originate treatment of imported vehicles, from China, Korea and Taiwan where machinery and parts from 33 they have resided for centuries. identified risk countries. Meanwhile, Biosecurity NZ will Heat-treatment chambers are being used in Japan to ensure biosecurity risks, such as brown The measures are also in place marmorated, below, and yellow-spotted stink bugs – don’t hitch rides on vehicles to New Zealand soon be able to fine vessel operators for all sea containers from Italy that don’t abide by the rules. during the current stink-bug The new offences came into season, which runs until April. force on September 2 and allow During the last BMSB season, officers to issue infringements to Biosecurity NZ turned away four operators that don’t provide notice contaminated vessels from New of a ship’s arrival. Zealand waters and intercepted Ships that don’t respond to an 151 live stink bugs at the border. official request to declare what This resulted in some delays has been done to comply with for stock arriving in this country, risk-management requirements but disruption for franchises and will also face a fine, explains Stu used-car dealers was nowhere on get cargo released once it arrives.” Rawnsley, of Biosecurity NZ. the scale of February to April 2018 Similar to previous years, the “MPI staff are busy “Ultimately, we want masters when the supply chain virtually 2019/20 season means increased answering inquiries from to supply required information to came to a halt. surveillance and inspection of people in other industries us as early as possible. This is to “The importing industry needs arriving vessels and cargo from who are unsure of the ensure we can target our efforts to be aware high-risk cargo that countries with established stink- requirements of the import health at vessels that pose the greatest hasn’t been treated before arrival bug populations. standard [IHS],” says Yorston. biosecurity risk.” will not be allowed to come ashore Hallett stresses: “Ultimately, if His advice is if you are bringing The penalties for offences are in most instances,” says Paul Hallett, officers determine a ship is infested in stock from Japan, ensure agents $400 for an individual and $800 for of Biosecurity NZ. with bugs, it could be prevented ship it through an authorised a corporation. “The aim is to keep out a highly from discharging and directed to border-inspection organisation. “The fines are aimed at lower- invasive pest that could devastate leave New Zealand.” “If importing from markets other level offending that would have New Zealand’s horticulture Malcolm Yorston, technical than Japan that are schedule three, required prosecution to enforce industry if it established here.” manager for VIA (the Imported ensure your agents are familiar in the past,” says Rawnsley. “We In the past, only non- Motor Vehicle Industry Association), with the IHS, and all vehicles and still have the option to prosecute containerised cargo from risk says: “BMSBs can be found machinery are treated by MPI and if necessary. countries required treatment anywhere there’s a warm spot as Biosecurity NZ-approved providers.” “The infringement option before arrival, so Biosecurity NZ the weather cools down. Vehicles In addition to heat-treatment gives us an additional tool to is concerned some importers and and machinery are known to attract facilities at Japanese ports, there encourage vessel operators to take shippers may be unaware of the them because they crawl into small, are also traps on ships, and fogging their biosecurity responsibilities new regulations. confined spaces to hibernate.” systems can cover individual decks seriously. We’re also keen to “We can give advice on approved VIA reminds all of its members if any stink bugs are found. do what we can to encourage off-shore treatment providers when and the wider industry that The extra precautions have voluntary compliance.” necessary,” says Hallett. border-inspection organisations added about $250 to the cost of The new penalty notices follow Biosecurity NZ is working are looking after the Kiwi market importing each used car into New April’s introduction of similar fines closely with industry to address any by carrying out heat treatment on Zealand. for containment and transitional operational concerns about the vehicles and machinery imported Stink bugs have yet to become facilities for actions that could changes and Hallett is optimistic the from Japan. established in this country, or at allow invasive pests and diseases tighter rules will reduce clearance There are another 32 “schedule least biosecurity officials don’t into New Zealand. delays this stink-bug season. three” countries, which are risk think they have. “We want to send a strong “There will be a lot less zones, and treatment is mandatory But a report published by the message about the importance of treatment required on-shore, which for all goods being exported here NZIER in 2017 found that – under a biosecurity across all vessel operators should speed up the time it takes to from those jurisdictions. worst-case scenario – the country’s and the entire industry.”

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

SEAN STEVENS has been appointed acting chief raft of information amounted to $8.8 billion for the executive officer of Vehicle Inspection New Zealand released by Statistics New year ending June 2019. (VINZ) effective until March 31, 2020. His previous Zealand gives pointers Our top trading partners are position with VINZ, which he took up in August 2015, toA car dealers on future business China followed by Australia, the was general manager of operations and delivery. opportunities and how the industry European Union and the US. Before joining VINZ in 2015, Stevens, pictured, was has performed in the wider context Japan is New Zealand’s fifth- with Continental Car Services for five years – first as assistant service of the country’s economy. largest trading partner for goods manager for Audi and then service manager of Peugeot. Annual net migration has been and services. It’s also hosting this He started his career with Ateco Automotive in 2007 as an after-sales provisionally estimated at 50,900 year’s rugby world cup, which is manager before becoming a group service manager for wholesale. in the year ending January 2019 a focus for Kiwis – and car dealers “Sean will report to the VINZ board and on a day-to-day basis to compared with 52,700 in the are bundling up buying trips with me as executive director,” says Gordon Shaw. “The board and I will previous reporting period. going to matches. be assisting him with the transition, and I will lead our government- Stats NZ says despite the drop In the June 2019 year, New relations portfolio with Sean. The recruitment of the permanent chief in net migration, provisional Zealand’s trade balance with Japan executive officer will start in late-January 2020.” estimates of arrivals increased came in at a $347 million surplus, for the 12 months up to and meaning we sold more goods and MIKE SEXTON has been appointed as managing including January. That was a rise services to that country than those director for the New Zealand operations of Marque of 4,000 to 144,200. bought in return. Group, the Sydney-based global automotive The top source country for “Our top export to Japan is technology company. incoming migrants was Australia travel services with nearly two- He will now lead the group’s operations on these with 25,100, of which 15,200 were thirds coming from spending by shores from its offices in Auckland, Tauranga and Hamilton. They Kiwi citizens. China came in second international students from Japan,” include lead management and road-to-sale platform AutoPlay, and with 14,700, followed by India with says Peter Dolan, senior manager Smart Loyalty – a bespoke trade, business-to-business and business-to- 12,600 and the UK on 10,200. for international statistics. “In employer technology supplier. Provisional estimates of migrant contrast, most spending from New Sexton was previously managing director of Smart Loyalty after departures climbed by 5,800 to Zealanders travelling to Japan is starting out as its chief operating officer in 2016. Before that, he was 93,300, which means net migration from holidaymakers.” general manager for the company in Australia after holding various for the past calendar year was Meanwhile, wholesale trade roles across the Tasman and in this country since 2007. down 1,800 compared with the sales rose in the June 2019 quarter, He will work with Marque Group’s leadership team to analyse and year ending January 2018. reports Stats NZ, but motor vehicles develop fresh ideas through innovation, and grow the organisation “Net migration continues to and parts had the largest decrease and its offerings to the automotive industry in New Zealand. Visit www. remain at historically high levels,” in value of transactions with a drop autofile.co.nz to find out more. says Tehseen Islam, Stats NZ’s of 4.1 per cent to $116m. manager of population indicators. Geraldine Duoba, business DEAN EVANS has taken on the editorship of Driven, “This has been the case since 2014 statistics manager, says: “The fall NZME’s motoring magazine. with a peak in 2016.” in motor-vehicle wholesaling is He has extensive journalism experience having During the same period, there reflected in the declining number held editor roles at LCV and Truckbody & Trailer were 109,800 migrant arrivals of of new-vehicle registrations, which magazines. Preceding that, he was the longest- non-New Zealand citizens and have been falling since early 2018.” serving editor of Fast Fours & Rotaries. 47,800 migrant departures for a Finally, retail-card spending As well as being deputy editor of Motor magazine and senior net gain of 62,000 Kiwi citizens, has bounced back after a five- road-test editor on Wheels, Evans, pictured, launched his own lifestyle which bodes well for longer term month quiet period with most automotive title, Tarmac magazine, which he ran for five years. business opportunities. industries seeing increased card “There isn’t much Dean hasn’t done in automotive marketing, The first provisional estimate spending in August, including the having worked for Hankook Tyres Australia and Lotus Cars Australia,” of net migration for the January automotive sector. says Greg Cassidy, general manager of Driven. 2019 year was 58,400, which – over Consumers forked out $186m the past five months – has been on vehicles – an increase of $7.8m DAVID McINTYRE is now regional director of Lotus for revised down to 50,900. or by 4.4 per cent – compared to its Asia-Pacific region, which includes New Zealand. However, some users of the month before. This was the The marque says it’s further evidence of its migration data still look at the most most spent via electronic card ambitious plan for significant growth in global markets. recent provisional data. For the transactions in the industry this year. McIntyre has 25 years’ luxury and performance year ending June 2019, there are The total value of card spending automotive experience including working for brands such as Porsche, expected to be 145,300 arrivals and was up $93m, or 1.3 per cent, in Aston Martin, Bentley and McLaren. 95,900 departures for net migration August after a 0.2 per cent fall in July. For the past 15 years he has worked in the Asia-Pacific region, gain of 49,400 people. In actual terms, cardholders including periods in South Korea and China. Stats NZ has also released made 150 million transactions information on the country’s across all industries in August for TO FEATURE IN INDUSTRY MOVERS EMAIL [email protected] two-way trade with Japan, which a total spend of $7.3b.

24 www.autofile.co.nz f & i focus Specialist training delivers dividends he automotive industry be prevented through Protecta’s F&I training practical and interactive way. is going through many long-term strategies. is facilitated by Erin “Critical attributes of business changes and is highly In response to Mills. She’s a qualified managers are a high degree of competitive,T which often makes industry challenges, trainer, who also has motivation, and the ability to sales targets challenging, and Protecta realised clients extensive experience of build and maintain productive sometimes impossible, to achieve needed more from their working in the business relationships with their teams,” month after month. insurance provider, so manager’s seat for some explains Erin. While there are effective sales we shifted our focus of Australasia’s largest “Sales teams and business and marketing initiatives to achieve from selling products COLIN MARSHALL dealers. managers need to be working in targets, they don’t always support to selling service and Direct sales & Her understanding unison to optimise every sales marketing manager long-term plans. expertise. This was Protecta Insurance of what makes a great opportunity. These are the kinds of Without strategies to cover the achieved by taking a business manager and areas our workshops also cover.” long term, car dealers may face added proactive approach to helping our having a great sales team is paying Protecta also provides a pressures and challenges ranging customers achieve targets. dividends for Protecta’s dealers. comprehensive training and from unattainable sales targets to Selling competitively priced “Clients are growing more aware account management package with decreasing employee satisfaction, products has never been a of our F&I training,” says Erin. “And Ray Meharg and Dass Pillay looking performance and retention. challenge for us and possibly not we’re finding an increasing demand after national accounts, and six Protecta Insurance has worked for other insurance providers. from dealers to consult with them on regional sales consultants looking with a large range of motor-vehicle We know the industry well and legislative requirements, their sales after car traders across New Zealand. traders for more than 30 years, and have been working in it for a long capability and how we can assist.” We recommend dealers who has seen many clients with similar time. We wanted to be able to Protecta’s intensive workshops think they may be able to strengthen strengths and weaknesses. show greater value to our clients, benefit clients by increasing their workforce, through F&I training, While some weaknesses are so we were the first to diversify our product, finance, compliance and get in touch to see how we can assist. indicative of the industry, there are business to include specialist training sales knowledge, while also building Just email [email protected] many that are not and they can in finance and insurance (F&I). individual and team confidence in a or call 0800-776-832.

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www.autofile.co.nz 25 industry profile

Leap of faith into digital world t

t’s no surprise Chris Knight, Knight eventually returned to former managing director New Zealand and landed a position of MotorWeb, has forged a with Giltrap City Toyota. Isuccessful career in the motor- “I was reasonably confident vehicle industry. I could sell cars because I loved His father Des was a used-car them, had loads of knowledge dealer on New North Road in Grey about them and felt comfortable Lynn, Auckland, and Knight was talking to complete strangers. driving his vehicles when he was 12 “Closing hard deals is before getting his driver’s licence something I had to learn. The three years later. worst part was rejection – so many “I spent many years as a customers immediately perceived teenager there. When dad traded you negatively as a used-car a car, and if I liked it, he would let sales person and didn’t want to me drive it for a while. I would then talk to you. Having to overcome clean and polish it, put it on his that perception every time was yard and drive something else.” a challenge and probably the Knight recalls his formative hardest thing I had to do. years in the industry with “Back then, as a commission- unabashed affection. only sales person, you were only “There was a car park down the as good as your last month – and it road from dad’s yard. It was empty was very competitive. on the weekends, so I would take a “I was reasonably successful and vehicle, drive it around the car park was top sales man most months. to practise parking and reversing. I But some sales people weren’t would set up road cones and drive that good. Potential customers as fast as I could, both backwards would walk onto the yard and and forwards through the cones leave without being sold to and I trying not to knock them over”. “We went through huge adversity. thought, ‘there has to be a better The born-and-bred Aucklander way of looking after leads’.” left Westlake Boys High School We had no money, debt collectors So Knight suggested a customer on the North Shore after year were trying to kick the office door induction flow to ensure each new 11 to take up a mechanic’s customer got the best introduction apprenticeship at Alan Clark down and we couldn’t afford the rent” to the company and cars on offer at Mitsubishi in Albany. all points of contact. After four years, “some strange – Chris Knight on the formative years of MotorWeb But the business didn’t see his reason – I don’t know how or why”, suggestion for what it was. And Knight called Brisbane BMW. He craftsmanship. I worked for BMW bucks. He flew via Aspen, Colorado, he was tired of having to hide said, ‘I’m looking for a job and these for about another five years and but when he disembarked he behind cars or get into them and are my qualifications’. The voice at spent a lot of time learning the ended up staying there for a couple duck down so no-one knew he was the other end replied, ‘we’ll hire technical aspects of cars, sitting of years instead. inside to ensure he was the first you, come over’, just like that”. many exams and getting a ‘BMW “It was a party town and I sales person customers came into “It was a great experience. After passport’ with my credentials in it. skied almost every day. I got a contact with. a big storm in 1989, some 18 BMWs “I was one of the country’s most job removing furniture, which “The crazy tricks you did to were damaged when the basement accredited technicians. During wasn’t cool. The best jobs were in ensure you got to potential buyers of the building in Fortitude Valley that time, I asked for a pay rise hospitality because staff usually first. That was my livelihood being flooded. Insurance paid for the because I was on a low hourly rate. got big tips. But I needed the work commission-only. Antics behind damaged stock, but BMW didn’t It was refused and I could see my as my cash reserves were running the scenes were interesting,” want them going onto the market so career in New Zealand coming to very low. says Knight, who also worked for they brought all the vehicles back. an end because I wasn’t getting “By a stroke of luck, I ended up Schofield Holden for several years. “That’s when I was made recognised as a skilled technician. staying in the business owner’s responsible for the full “I realised that I would struggle house. He was a great bloke and FROM ‘HAIRBRAINED IDEA’ refurbishment of them so they to get a good salary here, whereas in gave me the use of a near-new Knight eventually decided he could be sold under BMW’s new- Europe technicians were well-paid – Jeep Renegade. He loved skiing had had enough of selling cars. car warranty status.” more than double what I got here.” too, so we had some great times. He didn’t really know what he About 18 months later, Knight After the first season I went to was going to do next, but an returned to New Zealand and landed SIDETRACKED BY SLOPES Europe for a short time, but industry friend had heard of an a job with Team McMillan BMW. Knight headed for the northern thought ‘bugger this’ and went opportunity that involved cars and “I liked the marque’s quality and hemisphere in search of bigger back to Aspen.” a thing called the internet, and 

26 www.autofile.co.nz industry profile

t suggested that he applied. me and said they would give our After investigating it further, product a try. Once they worked out he found out it was a start-up IT how cool it was, as well as saving company. “I thought, ‘well, I can time and money, they started always sell cars, but opportunities chatting about it and that made like this don’t often come up’. taking it to other dealers easier. “I didn’t know what the internet “More and more traders started was back then. However, I knew to get on-board and then, all of a a lot about vehicles and dealers. I sudden, MotorWeb was the talk of talked to the founder who was like the town and dealers were coming a mad scientist with a great idea to us. That’s when we knew we had and was well-ahead of the times. cracked it.” I thought, ‘that’s pretty cool’, so I started with him in 2000.” CASHING IN THE CHIPS MotorWeb finally started trading Fast-forward to 2014 when it was in 2001 and has gone on to become decided to put the company on a leading vehicle-history check the market. It ended up being sold provider, delivering online services to Trade Me for $19.5 million. to the industry and public. It’s a one- “Part of the deal was that I stop shop for dealers by providing Chris Knight, left, presenting the small car award for the Fiesta to Chris Masterton, now stayed on to help transition the many online services, including its former marketing manager of Ford NZ, at the NZ Car of the Year Awards in 2013 business over. Trade Me is a great vehicle-information report. company to work for with its However, the company’s early kick us out, we’re toast’ because we were trying to do, plus we owed business culture and staff – I don’t years were far from plain sailing our data connections came into the landlord tens of thousands of think it would be easy to find such and massively different to anything the building and we couldn’t get dollars. If he had kicked us out, a good environment with other big Knight had done before, even them transferred. It would have he knew he would never have companies. though it related to the automotive been the death nail in our coffin. recovered the rent arrears, so he “When the company was industry. “The property manager found took a punt on us and was stoked looking to be acquired, I thought “The business spluttered and us a couple of storage rooms, when we made it.” I wouldn’t want to stay and when struggled early on. We had to pretty much in the basement, for Knight often questioned his my transition time was up that I rebuild the system and lay off just $25 a week each. We managed to decision to join MotorWeb back would go. about all staff. The founder, myself plumb our data connections into then, especially when he wasn’t “However, Trade Me is noticeably and a technical guy stayed, and those rooms. We worked there for getting paid and had a young different. If you’re a people-person, worked for years to get it going. the next couple of years with no family with premature twins in you can quickly pick up on the “We went through huge natural light. hospital. It was a struggle and, at health of the working environment. adversity. We had no money, debt “We ended up paying every times, he thought “what have I “When my MotorWeb transition collectors were trying to kick the cent in rent we owed. The landlord done”. The company then started clause came to an end, I ended up office door down and we couldn’t was surprised we made it, and we to slowly gain market traction. staying and taking the position of afford the rent. We had to beg to ended up going back upstairs to “Many of my contacts trusted sales director for Trade Me Motors.” stay in the building we were in the office on the building’s corner – we owed a lot of money to the with the best views of Newmarket. landlord. “The building manager was a “We pretty much said, ‘if you good bloke and understood what Tinkering with first wheels to create sporty edge

Chris Knight was 18 when he bought his first significant car – a red, four-door, Ford Escort Mark II. He owned it for about 12 months. “I was an apprentice mechanic and spent a lot of time working on the Escort’s motor and honing up the head with a die grinder, honing out the ports and putting in bigger pistons, as well as a special cam and manifolds. I made it quite sporty.” Chris Knight’s first Knight, who currently drives a dark-grey BMW X5, also enjoyed car was a red Ford owning a mid-1980s Holden Commodore (VK) Royale, which he Escort Mark II, like the one pictured bought at auction after it had been burnt out. above. A mid-1980s VK Commodore “I spent a lot of money on it,” he recalls. “I pulled the motor out Royale, right, was and put in a V8. It was a cool car when I had finished working on it.” another favourite 

www.autofile.co.nz 27 motorsport Formula 4 experiment scrapped

he Confederation of Australian Motor Sport (CAMS) has pulled the pin onT its Formula 4 series in the face of dwindling grids. Heralded as the first step on the global pathway to Formula 1, the F4 Championship across the Tasman was first held in 2015. It was intended to be a feeder category for drivers chasing “wings F4’s demise means Australia has and slicks” careers. no official junior category Unlike New Zealand’s Castrol Toyota Racing Series (TRS), in Throughout its four-season this year’s title with a round to spare, dominated grids, and was second which where cars are owned by the lifespan, the F4 in Australia was but F4’s demise leaves Australia in the title chase in 2017 and marque’s motorsport company, the plagued by crashes and incidents. without an official junior category. 2018. Lawson is the reigning TRS Australian vehicles were owned by Luis Leeds will be remembered as The series was of some benefit champion and member of Red CAMS itself. the last F4 champion after winning to Kiwi Liam Lawson though. He Bull’s junior team. Boss appointed to sport’s governing body imon Baker has been named chief executive officer of MotorSport New Zealand. SThe Wellingtonian has a strong background in technology, team leadership, sales and marketing. Baker has always had a passion for motorsport since he was a child with brief forays into karting and speedway. Last year, he started competing in an RX-8 in the Mazda Baker has a passion for motorsport having competed Simon Baker in karting, speedway and the Mazda Racing Series Pro7 Racing Series. “Simon’s infectious enthusiasm involved with the sports industry, the team’s current capabilities. The management structure is and determination to succeed, exposing me to some of the “I’ve found it fascinating moving to a format with a chief together with his experience in challenges facing organisations. learning more about New Zealand’s executive officer and board of management and sales, make “After meeting Wayne and the contribution to motorsport on directors. him the ideal person to continue board, it was clear the board wasn’t the global stage, which highlights The board has a governance to strengthen our vision of being seeking anyone to run technical or great opportunities for competitors role, while the CEO is responsible this country’s most exciting sport,” regulatory aspects as MotorSport and exporters alike.” for daily operations and meeting says Wayne Christie, president of NZ already has these skills through Baker’s appointment is part key performance indicators. Motorsport NZ. people such as Elton Goonan of strategic changes since the Baker has replaced Brian Budd, Baker adds: “My career, especially and Terry Carkeek. Rather my organisation’s constitution was who resigned after 10 years with in the past 10 years, has been skills and experience will augment revised in 2015. the organisation.

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28 www.autofile.co.nz motorsportf & i focus Southland’s finest ready for next step

t’s an exciting time to be Brendon Leitch. The Invercargill-born driver is at Ithe sharp end of a busy racing season contesting Formula Three Asia and the Lamborghini Super Trofeo, a pro-am series in which he’s currently second overall. Leitch is a commuter racer, flying to each round from New Leitch en-route to third place at Sepang

Zealand and the only one in either On the F3 podium at Suzuka series to be contesting both. Three of the six Lamborghini rounds are at the same tracks. “That’s when it gets super-busy,” he says. “I have to watch my prep times pretty closely to ensure I get to each session or race and then achieve good results in both.” Adjusting between agile single- seater and the bigger, more powerful Lamborghinis takes some doing – throttle use and application, and transitions between throttle and brake and back again, are all totally different between the two vehicles. Leitch won in Korea in August. He was then sixth and fifth – second pro-am – in the two races of the penultimate round to sit second on Southlander Brendon Leitch, 23, has been jetting around Asia competing points going into the final held as in Formula Three and Lamborghini Super Trofeo races Leitch won the Lamborghini Super Trofeo in Korea last month part of 2019’s world final at the Jerez circuit in Spain from October 24-27, balance of power, aerodynamics and watch some TRS rounds, especially he partnered with Christina so a title is a definite prospect for handling with good brakes as well.” at his “local” circuit where his name Orr-West, one of New Zealand’s the young Kiwi. Leitch adds that the racing in is on the trophy for the series’ quickest female competitors. the F3 championship is tougher. feature race. Fast-forward past some one-off RATING REGIONAL F3 CARS Teams such as Hitech and Absolute His Kiwi CV now strongly points enduro drives to this year and then In the F3 series, Leitch has stolen are running multiple drivers, and to a top GT drive. Stand-out results there’s a dual opportunity – the a march on competitors heading there’s the likes of Jack Doohan – from recent years include third Asian F3 in the latest F3 machinery down under to contest this year’s son of motorcycle world champion overall in the 2013 New Zealand and the mighty Lamborghinis. Castrol Toyota Racing Series (TRS). Mick – to contend with. Formula Ford Championship and The vehicles used in Asia are second overall a year later. LOYALTY BEING REPAID the same Tatuus T-318s as will be ONTO A GT FUTURE? The talented 23-year-old then Leitch is loyal to those who support used in New Zealand although That F3 experience would be contested the TRS in January and him. He ran all his seasons in the their engines are different. In Asia, perfect preparation for another run February 2014, scraping through TRS with Nelson-based Victory the power comes from a turbo at a TRS title, but Leitch plans to be on second-hand and borrowed Motor Racing, and has received Alfa-Romeo engine, and on our training and packing for a GT series tyres, but putting in a performance essential backing from the Kiwi shores from a turbo four-cylinder drive. That means every single that embarrassed many better- Driver Fund and Post Haste. used in Lexus and Toyota cars. Both, dollar he can lay his hands on has resourced competitors. And every year the car featured apparently, make 200kW – although to be directed at this goal. In that same year, he drove a more and more yellow from a scuttlebutt has it the Toyota-Lexus He’s actively talking to team GT3 class Aston Martin DBR9 in the sponsorship created by Deborah unit would be comfortable at managers and talent spotters inaugural Highlands 101 – one of Day, of Dayle ITM, as it blossomed 208kW or all the way to 224kW. watching the series and the a pair with brother Damon and his into a long-term deal. In every other respect the vehicles Lamborghinis. He would like the first serious GT drive. As Leitch prepares for the next are identical. Leitch is fourth outright drive to be in Asia, but is looking More similar drives followed, step, such loyalty will no doubt be on in a grid of 22 entries, albeit with at all offers. including a stint with the his mind. He must now balance this some fast young guys in front of him. Leitch admits it will be difficult Malaysian Mike Racing team against the demands of the cut-throat “The cars are great – a good not to feel a certain “itch” if he does running a Mercedes-AMG. There world of modern motor racing.

www.autofile.co.nz 29 disputes

The case: The buyer wanted to Reminder from adjudicator protections reject his Isuzu Wizard because he believed its engine was damaged. He also claimed the dealer had engaged afforded by act ‘are not indefinite’ in misleading conduct in breach of the Fair Trading Act (FTA). The trader said it had fixed most of the vehicle’s Background to overheat soon after starting. provided a copy of the policy to faults, but wasn’t liable for remaining Varun Chauhan bought a 1996 Isuzu He alleged both problems were Chauhan because it was usual issues. It denied misleading the Wizard with an odometer reading of evidence of significant engine practice for the document to purchaser. 230,000km for $4,995 from Robert damage and its powerplant be sent to the buyer by Janssen The decision: The applications Allen Wholesale Ltd, trading as RAW needed to be replaced. Insurance. Chauhan denied for remedies under the Consumer Motors, on April 6, 2018. The Wizard was assessed by receiving a policy email from the Guarantees Act (CGA) and FTA were About five months after Morrison Diesel, which provided company. dismissed. purchase, he wanted to reject the a $6,000 estimate for repairs, but At: The Motor Vehicle Disputes vehicle. He claimed it had a number didn’t explain what the faults were. The finding Tribunal, Auckland. of faults, including significant The tribunal asked Chauhan to Under the CGA, the buyer engine damage that amounted to have the problems diagnosed by a must prove a vehicle has the a failure of a substantial character repairer, but he failed to do so. faults alleged on the balance of mileage must have realistic under the CGA. The buyer said the Wizard probabilities. expectations as to its quality and Chauhan also alleged RAW also had several other faults after Although the Wizard had durability, and should understand Motors had engaged in misleading purchase, including issues with its overheated and had a water faults that can be expensive to conduct in breach of the FTA by headlights, power steering, brake leak, the buyer hadn’t provided repair may arise from time to time. stating the Wizard was in a good lights and four-wheel-drive (4WD) conclusive evidence of significant Taking into account the nature condition with no issues in its pre- selector. engine damage. of the problem that caused the purchase advertisement. However, these faults had been The tribunal’s assessor said the vehicle to lose water and overheat, RAW Motors said it had fixed repaired by RAW Motors. two faults could have been the because of the period of time most of the vehicle’s faults and it As to his application under the result of water escaping from a after purchase before the fault wasn’t liable under the CGA for FTA, Chauhan claimed the trader ruptured cooling hose. became apparent and distance the remaining faults. It also denied engaged in misleading conduct The assessor added the buyer travelled in that time, the tribunal engaging in misleading conduct. by stating the Isuzu was in a good was able to start and drive the was satisfied it was as durable as a condition with no issues in a Isuzu for short distances, so it reasonable consumer would have The case pre-purchase advert, but he was was unlikely its engine had been considered acceptable. Five months following purchase, the unable to provide a copy of that damaged due to overheating. As for the buyer’s claims under Isuzu overheated with coolant fluid advert at the hearing. The tribunal found these two the FTA, the tribunal wasn’t gushing out of its overflow tank. He also purchased a mechanical faults didn’t breach the CGA’s satisfied RAW Motors engaged The next day, Chauhan breakdown insurance policy from acceptable quality guarantee in misleading conduct because had a warrant of fitness (WOF) Janssen Insurance through RAW because they occurred too long Chauhan was unable to provide a inspection performed on the Motors, and alleged the trader after purchase. That was because copy of the Isuzu’s for-sale advert. station wagon by Super Cheap again engaged in misleading the protections in the act aren’t The tribunal also ruled the Tyres in Onehunga, which noted conduct by failing to provide him indefinite. primary obligation to provide the the Wizard had a water leak. with a copy of the policy. The buyer noticed the Wizard buyer a copy of the mechanical He continued to use the The buyer said that if he had a was overheating five months after breakdown policy laid with Janssen vehicle, but it overheated again a duplicate of it, he would have known purchase and after driving it for Insurance and there was insufficient few days later and he contacted his claim limitation was $2,000. more than 7,000km. evidence to show RAW Motors RAW Motors about this on Chauhan said this amount was The tribunal said that was too misdescribed claim limitation or September 17. significant because the estimate long and too far after purchase for other terms or conditions. Chauhan said the second time he had obtained for fixing the the acceptable quality guarantee the car overheated, water started to engine damage greatly exceeded to continue to apply. Orders leak from a steel pipe at the top of this claim limitation. A reasonable purchaser of The CGA and FTA applications were the engine. He added it continued RAW Motors agreed it hadn’t a vehicle of this price, age and dismissed.

MEDIATION SERVICE FACILITATING RESOLUTION

30 www.autofile.co.nz disputes

The case: The buyer claimed he Tribunal rules trader made misleading was misled about the type of car he bought, suffered loss due to two functions not operating and was given representations to client in online advert an incorrect value for the vehicle he traded in as part of the deal.

Background the combined effect of these However, the tribunal ruled The decision: The adjudicator ruled Peter Cox bought a 2006 Mercedes- representations would have led a Goldex hadn’t engaged in the trader had to rectify the defects and pay the purchaser costs for getting Benz S500L for $17,535 from reasonable consumer to believe misleading conduct in respect of them assessed, but wasn’t satisfied he Goldex Ltd on February 18, 2019. Goldex had inspected the car the trade-in. had been misled about his trade-in’s He traded in his 2001 E430 for and the mentioned parts were Cox alleged the trader value. $1,500 at the same time. operational, but they weren’t. understated the value of that The Motor Vehicle Disputes Cox alleged Goldex engaged The vehicle has been assessed At: vehicle and overstated the cost of Tribunal, Auckland. in misleading conduct in breach by Mercedes-Benz Wellington. It fixing any faults present. of the Fair Trading Act (FTA) by found the trunk control unit was He added he was told by a representing the car was an AMG faulty and needed replacing. salesperson the trade-in was model when it wasn’t, stating It also discovered the worth $3,000, but required $1,500 Goldex’s repair was excessive. its remote boot opening and headlight washer pump had been worth of repairs due to an oil leak. headlight washer functions were disconnected. After reconnecting Cox said, as a result of these The finding operational when they weren’t, it, a water leak from an o-ring was representations, he accepted Section 43 of the FTA states the and misleading him as to his found and cost $167 to replace. $1,500. He had spent a lot of normal measure of loss is the trade-in’s value. The tribunal was satisfied money on repairs and – in his difference between the value of Cox sought remedies under the representations these two opinion – the trade-in was worth what is purchased and the price paid. FTA, including compensation for the functions worked were misleading between $4,000 and $5,000. In this case, that meant Cox loss he suffered due to being misled, when the car was sold. He said he had no reasonable would have suffered loss if he paid but Goldex denied misleading Cox. However, Dimitry Strelets, of alternative but to accept Goldex’s more for the vehicle than it was Goldex, gave evidence he told offer because he couldn’t drive his worth. The case Cox that its remote boot function old car back to Wellington. He paid $17,535 for the car and Goldex advertised the car on Trade wasn’t operational. The latter said However, Cox’s evidence didn’t had a valuation from Mercedes- Me and the listing’s headline stated he first discovered the fault after enable the tribunal to form a Benz Wellington that showed its it was an AMG, but Mercedes-Benz returning to Wellington. precise view as to the trade-in’s current market value was $19,990, confirmed it wasn’t. The adjudicator preferred Cox’s wholesale value, so it was unable to so the tribunal was satisfied Cox This misdescription was evidence, and found him to be a conclude Goldex had misled him. suffered no recoverable loss. significant. Cox said the AMG was witness with a clear recollection In addition, the adjudicator In respect of misleading the marque’s “ultimate model” with of events. He was satisfied Goldex wasn’t satisfied Cox had proven representations about the remote features an ordinary one didn’t have. didn’t tell Cox the boot function Goldex engaged in misleading boot open and headlight washer, The tribunal’s assessor agreed was faulty. conduct by claiming the car had the tribunal was satisfied Cox had AMG was used to designate the Even if the adjudicator had an oil leak that would cost $1,500 suffered loss. vehicle had been upgraded from the accepted Strelets’ evidence, to rectify. The vehicle didn’t have the base model with a bigger engine, Goldex still engaged in misleading The assessor advised such functions represented in the upgraded brakes, and ordinarily had conduct because of its misleading a leak in an E430 could be Trade Me listing, and Cox incurred a higher price-tag so the adjudicator representations on Trade Me. expensive to fix and $1,500 might costs in assessing and diagnosing was satisfied Goldex had engaged in He said the listing drew Cox into well be reasonable, depending on the defects. misleading conduct. the “marketing web” by enticing the problem’s extent. The supplier also stated the car him onto Goldex’s premises under Although Cox said neither he Orders had “headlights washer” and “remote the mistaken belief the boot nor his mechanics had identified Goldex has to repair the faulty boot open” functions, and claimed function worked. He then bought any leak, the adjudicator wasn’t remote boot open and headlight all of its products were “without the car despite it not having the satisfied he had proven it was washer functions, and pay $529 to mechanical or electrical problems”. features he wanted because of the free of oil leaks at the time of the Cox for getting the defects assessed The adjudicator was satisfied misleading advert. trade-in or that the estimate of and having the car valued.

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

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

SEP ’19 2019 YEAR 2019 SEP MKT 2019 YEAR 2019 MKT MAKE SEP ’19 SEP ’18 +/- % MAKE MODEL SEP ’19 SEP ’18 +/- % MKT SHARE TO DATE MKT SHARE SHARE TO DATE SHARE Toyota 2,705 2,423 11.6 23.3% 23,070 21.8% Mazda Axela 608 628 -3.2 5.2% 5,563 5.3% Nissan 2,270 2,318 -2.1 19.5% 20,689 19.6% Honda Fit 571 468 22.0 4.9% 5,076 4.8% Mazda 1,871 1,990 -6.0 16.1% 17,222 16.3% Suzuki Swift 458 540 -15.2 3.9% 4,695 4.4% Honda 1,313 1,215 8.1 11.3% 11,796 11.2% Nissan Tiida 409 584 -30.0 3.5% 4,363 4.1% Subaru 707 636 11.2 6.1% 6,175 5.8% Toyota Prius 393 354 11.0 3.4% 3,016 2.9% Suzuki 531 613 -13.4 4.6% 5,501 5.2% Mazda Demio 385 500 -23.0 3.3% 3,973 3.8% Mitsubishi 500 478 4.6 4.3% 4,826 4.6% Toyota Aqua 368 104 253.8 3.2% 2,320 2.2% BMW 418 456 -8.3 3.6% 3,802 3.6% Nissan Leaf 305 299 2.0 2.6% 2,561 2.4% Volkswagen 384 382 0.5 3.3% 3,424 3.2% Mitsubishi Outlander 282 268 5.2 2.4% 2,798 2.6% Audi 202 220 -8.2 1.7% 1,944 1.8% Toyota Vitz 251 225 11.6 2.2% 2,228 2.1% Lexus 120 87 37.9 1.0% 1,162 1.1% Subaru Legacy 249 284 -12.3 2.1% 2,394 2.3% Mercedes-Benz 120 179 -33.0 1.0% 1,292 1.2% Mazda Atenza 246 238 3.4 2.1% 2,233 2.1% Volvo 65 65 0.0 0.6% 546 0.5% Subaru Impreza 244 206 18.4 2.1% 2,165 2.0% Ford 62 87 -28.7 0.5% 655 0.6% Volkswagen Golf 242 253 -4.3 2.1% 2,200 2.1% Land Rover 49 33 48.5 0.4% 332 0.3% Toyota Wish 241 271 -11.1 2.1% 2,407 2.3% Holden 42 34 23.5 0.4% 325 0.3% Mazda Premacy 236 255 -7.5 2.0% 1,990 1.9% Chevrolet 29 50 -42.0 0.2% 340 0.3% Nissan Dualis 221 186 18.8 1.9% 2,042 1.9% Hyundai 26 18 44.4 0.2% 231 0.2% Nissan Note 204 189 7.9 1.8% 1,811 1.7% Jeep 26 24 8.3 0.2% 228 0.2% Nissan X-Trail 190 145 31.0 1.6% 1,599 1.5% Jaguar 25 42 -40.5 0.2% 359 0.3% Toyota Auris 168 128 31.3 1.4% 1,510 1.4% Mini 23 30 -23.3 0.2% 242 0.2% Nissan Serena 157 91 72.5 1.3% 1,042 1.0% Dodge 19 21 -9.5 0.2% 226 0.2% Toyota Corolla 155 131 18.3 1.3% 1,410 1.3% Chrysler 18 22 -18.2 0.2% 186 0.2% Honda Stream 154 156 -1.3 1.3% 1,374 1.3% Porsche 13 16 -18.8 0.1% 151 0.1% Nissan Skyline 128 116 10.3 1.1% 1,161 1.1% Kia 11 6 83.3 0.1% 96 0.1% Honda CRV 125 104 20.2 1.1% 939 0.9% Peugeot 8 9 -11.1 0.1% 76 0.1% Toyota Ractis 117 83 41.0 1.0% 964 0.9% Cadillac 7 6 16.7 0.1% 48 0.0% Toyota Blade 114 139 -18.0 1.0% 1,009 1.0% Isuzu 6 1 500.0 0.1% 27 0.0% Mazda CX-5 114 74 54.1 1.0% 940 0.9% Daihatsu 5 4 25.0 0.0% 55 0.1% Toyota Vanguard 113 75 50.7 1.0% 812 0.8% Infiniti 4 1 300.0 0.0% 15 0.0% Nissan Juke 112 64 75.0 1.0% 849 0.8% Renault 4 6 -33.3 0.0% 61 0.1% Toyota MarkX 106 108 -1.9 0.9% 959 0.9% Citroen 3 3 0.0 0.0% 51 0.0% Mazda Verisa 106 112 -5.4 0.9% 958 0.9% Lotus 3 1 200.0 0.0% 3 0.0% Nissan Bluebird 101 100 1.0 0.9% 1,026 1.0% Pontiac 3 7 -57.1 0.0% 25 0.0% Nissan March 101 93 8.6 0.9% 842 0.8% Smart 3 2 50.0 0.0% 36 0.0% Subaru Forester 91 55 65.5 0.8% 710 0.7% Others 35 48 -27.1 0.3% 408 0.4% Others 3,565 3,907 -8.8 30.7% 33,686 31.9% Total 11,630 11,533 0.8 100.0% 105,625 100.0% Total 11,630 11,533 0.8 100.0% 105,625 100.0%

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34 www.autofile.co.nz www.heiwa-auto.co.nz Colourful career in industry obbie Baxter, soon to be 70, when we first started, we were is retiring after four decades paying 50 per cent duty. Things have of operating businesses on continued to change over the years, Invercargill’sR North Road. He owned such as with compliance.” a service station for 20 years. He ran These days, Baxter says it’s it for 10 years along with his yard, harder to make a profit on new and and then just the latter. used vehicles. Now he’s selling Robbie Baxter “It’s as tough as I’ve ever Autos after starting off in used experienced it. In the early days, imports before taking on a Hyundai only dealers knew what cars were franchise in 2004 and Foton worth – no one else did. Now, with Tunlands nine years later. the internet, buyers look for specific During his career, Baxter has vehicles and probably know more been to Japan on about 120 buying about them than I do because trips. His first was in 1989 and one they’ve done so much research. of the two cars he brought back was Robbie Baxter next to a cardboard cut-out of himself 15 years ago. “Have I aged that much,” “They see someone selling a sold while still on the transporter. The he asks. “Clients had to ring this bell to summons me to ensure I met them when they took cheaper car from an Auckland delivery of their cars.” other went within a few hours. backyard and think we should sell He bought off Japanese dealers dealers are a good bunch – there’s failing because the government the same one at that low price. before switching to auctions. always something going on. would have beaten it into the Discounting is rife across the For a while, in the early 2000s, “The early 2000s were among ground otherwise. We had to put in industry and the public now has a he imported from Singapore but the best years for used imports $5,000 each to get it going. discount mentality. “stopped because I wasn’t happy from Japan and it could have been “At the start, I brought in anything “I can’t see it changing much with the quality”. down to the way we were running I could get my hands. I would buy from where it is now. Dealers will Baxter, whose business was the business then too. anything on the day at the right price have to get smarter and keep costs called Cedar Motor Court when “In the 1990s, we formed the when I was in Japan. I always had a down. We used to make good he started out in 1988, renamed Imported Motor Vehicle Dealers’ range of stock and Mazda Familias money out of finance, but there it in 2004. That was when sedans Association to stop the industry were great sellers for $10,000. Back so many second-tier lenders out were in fashion before hatchbacks there that we didn’t have in the boomed. He has benefited from early days. That’s been another Used Imported Passenger Registrations - 2016-2019 ever-increasing demand for SUVs in detriment to profitability.” more recent times. 15,500 Looking ahead, Baxter believes “Before owning the service 15,000 the next couple of years could be station, I was a rep for Europa Oil 14,500 tight for traders. “They will have to Company, so it seemed like a natural 14,000 look at how they run their businesses progression to buy one,” he says. 13,500 and keep overheads down. Dealers “Cedar Motor Court was next door 13,000 need to keep an eye on costs and, if and I asked the owners if I could 12,500 you’re in used cars, buy smart. Trends 12,000 park my caravans and horse floats don’t happen overnight, so traders 11,500 between the two businesses. They have got time to catch up.” 11,000 agreed and two hours later came to As for last month’s statistics, 10,500 2016 ask if I wanted to buy the yard. 10,000 2017 sales of used imported cars 2018 “I’ve thoroughly enjoyed the 9,500 remained steady with registrations 2019 industry over the years. Every day is a 9,000 coming in at 11,630 – down by 0.8 new day and you don’t know what’s Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec per cent compared to 11,533 in going to happen. And Southland September 2018.

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www.autofile.co.nz 35 www.mmnz.biz Bid to move cars on barges orts of Auckland Ltd (POAL) could be loaded onto barges twice a Bledisloe wharves often look like fancy spanning at least 15 years. is looking into a feasibility day to travel up the Tamaki Estuary giant parking lots for thousands of Goff notes the barging option study to transport about to PTS’ facility in Highbrook. cars shipped in.” will require investment in certain P500 vehicles daily to the city’s east Goff says the company’s site is The mayor also believes getting areas, such as dredging, but the on electric barges. closer to compliance workshops cars off Captain Cook and Bledisloe proposal means cars can be moved The idea is being investigated and distribution centres, while the wharves may reap other benefits. on their day of arrival for much by Mayor Phil Goff and Tony port estimates the barges may One is converting Bledisloe so mega- faster throughput. Gibson, the port’s chief executive, eliminate 100 truck journeys from sized cruise ships can dock there, While the political pressure based on a submission from the city centre each day. thereby preventing the need for two mounts on POAL’s future, there transport company PTS Group. Gibson says: “We’ve been mooring extensions next to Queen’s were 9,195 used cars imported into The proposals come at a time looking at barging as an option, so Wharf at a cost of $16.9 million. New Zealand in September – down when political debate over POAL’s we’re pleased to have the mayor’s The barge proposal would from 12,307 in the previous month. future is hitting fever pitch with backing to take this investigation also leave Captain Cook wharf When comparing last month’s nearby residents lobbying for cars to the next stage.” free for potential public access to result with September 2018, the to be moved off wharves and the “We know there are sites cars the water’s edge. There has been drop was less steep at 0.5 per cent government looking into the future can be barged to,” adds Goff. “While talk about a stadium being built and 50 units. The year-to-date total of upper North Island ports. the port’s vehicle-moving times there, for example, although many is 107,908 – 2,447 units less than Under the plan, up to 250 cars have improved, Captain Cook and Aucklanders view that as a flight of the same period last year.

USED IMPORTED PASSENGER VEHICLE ARRIVALS

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

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

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

Used Imported Passenger Vehicles By Country Of Export

COUNTRY OF 2019 2018 2017 EXPORT JAN ’19 FEB ’19 MAR ’19 APR ’19 MAY'19 JUN'19 JUL'19 AUG'19 SEP'19 SEP MARKET SHARE % 2019 TOTAL 2018 TOTAL SHARE 2017 TOTAL MRKT SHARE Australia 277 399 644 487 397 665 531 421 352 3.8% 4,173 4,183 2.9% 5,540 3.2% Great Britain 101 61 72 52 76 39 54 74 94 1.0% 623 1,026 0.7% 2,173 1.3% Japan 12,823 7,839 12,259 12,554 14,404 9,997 11,091 11,604 8,517 92.6% 101,088 134,510 94.2% 160,822 93.8% Singapore 141 174 144 158 131 117 115 151 157 1.7% 1,288 1,531 1.1% 1,202 0.7% USA 58 44 71 39 59 58 62 41 61 0.7% 493 1,108 0.8% 1,419 0.8% Other countries 33 20 46 26 26 37 25 16 14 0.2% 243 415 0.3% 387 0.2% Total 13,433 8,537 13,236 13,316 15,093 10,913 11,878 12,307 9,195 100.0% 107,908 142,773 100.0% 171,543 100.0%

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36 www.autofile.co.nz Finance company taken off market

urners Automotive Group’s “Oxford Finance is a well- year,” says Todd Hunter, Turners’ Its three-year forecast shows decision to retain Oxford performing and growing business chief executive officer. “Initiatives further significant expansion. Finance despite “significant with a strong network of active we’ve implemented are delivering As for last month’s industry interest”T in the business above dealers across the country, and improved credit metrics and statistics, 18,534 second-hand its book value follows a review to we’re excited by opportunities to profitability. passenger vehicles were sold by car consider alternative ownership and continue reshaping and growing “Our auto retail channel is dealers to members of the public. growth options for the company. the business.” delivering solid volume with That was a four per cent increase In the board’s view, offers failed Turners will now continue with excellent quality origination. We when compared to 17,826 units in to fully reflect its “intrinsic value” its growth plans for Oxford Finance, have plans to further enhance the the same month of last year. and what it thinks can be achieved which include targeting higher- business in-line with our group Westport recorded the largest through continued growth. quality lending, using data and strategy of simplification, de- proportional increase in trader- “As indicated to shareholders, technology initiatives to improve risking and focusing on capital- to-public registrations of 83.3 per we were only prepared to sell risk-pricing, system integration to efficient growth opportunities.” cent, albeit on small numbers – Oxford if we were offered a broaden distribution and ramping Over five years, Turners has from six units in September 2018 premium price,” says chairman up origination from Turners Cars. grown the finance company from to 11 last month. Masterton was Grant Baker. “Our strong view is “Oxford’s operating profit to returning net profit before tax of second with a 45.5 per cent jump shareholder value continues to be August year to date is tracking $2.9 million when it was acquired from 222 registrations to 323 over optimised by retaining ownership. well-ahead of budget and last in 2014 to $11.1m in 2019. the same timescale.

SECONDHAND CAR SALES - September 2019

DEALER TO PUBLIC PUBLIC TO PUBLIC PUBLIC TO DEALER SEP ’19 SEP ’18 +/- % MARKET SHARE SEP ’19 SEP ’18 +/- % SEP ’19 SEP ’18 +/- % Whangarei 503 572 -12.1 2.71 1,914 1,931 -0.9 197 221 -10.9 Auckland 6,730 6,096 10.4 36.31 13,697 14,016 -2.3 4,865 4,875 -0.2 Hamilton 1,355 1,461 -7.3 7.31 3,309 3,273 1.1 910 1,056 -13.8 Thames 279 302 -7.6 1.51 613 646 -5.1 200 229 -12.7 Tauranga 901 864 4.3 4.86 1,956 1,922 1.8 562 546 2.9 Rotorua 410 401 2.2 2.21 913 999 -8.6 123 132 -6.8 Gisborne 152 145 4.8 0.82 427 377 13.3 47 47 0.0 Napier 722 687 5.1 3.90 1,413 1,395 1.3 452 386 17.1 New Plymouth 419 367 14.2 2.26 976 962 1.5 232 156 48.7 Wanganui 243 298 -18.5 1.31 619 593 4.4 129 189 -31.7 Palmerston North 735 788 -6.7 3.97 1,697 1,610 5.4 706 738 -4.3 Masterton 323 222 45.5 1.74 513 444 15.5 91 109 -16.5 Wellington 1,560 1,561 -0.1 8.42 3,136 3,053 2.7 1,003 1,084 -7.5 Nelson 313 283 10.6 1.69 1,019 977 4.3 184 171 7.6 Blenheim 174 169 3.0 0.94 370 393 -5.9 80 90 -11.1 Greymouth 68 73 -6.8 0.37 169 179 -5.6 33 37 -10.8 Westport 11 6 83.3 0.06 31 31 0.0 2 0 200.0 Christchurch 2,281 2,129 7.1 12.31 4,860 4,836 0.5 1,731 1,674 3.4 Timaru 200 211 -5.2 1.08 513 519 -1.2 91 102 -10.8 Oamaru 43 37 16.2 0.23 136 112 21.4 0 3 -300.0 Dunedin 657 730 -10.0 3.54 1,989 1,899 4.7 401 384 4.4 Invercargill 455 424 7.3 2.45 1,176 1,144 2.8 286 258 10.9 NZ Total 18,534 17,826 4.0 100.00 41,446 41,311 0.3 12,325 12,487 -1.3

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

SEP ’19 2019 YEAR 2019 SEP MKT 2019 YEAR 2019 MKT MAKE SEP ’19 SEP ’18 +/- % MAKE MODEL SEP ’19 SEP ’18 +/- % MKT SHARE TO DATE MKT SHARE SHARE TO DATE SHARE Toyota 2,226 1,955 13.9 21.6% 12,363 16.3% Toyota Corolla 1,011 872 15.9 9.8% 3,972 5.2%

Holden 877 626 40.1 8.5% 5,243 6.9% Toyota Yaris 432 219 97.3 4.2% 1,296 1.7%

Hyundai 721 566 27.4 7.0% 5,620 7.4% Tesla Model 3 359 0 35,900.0 3.5% 419 0.6%

Mazda 711 812 -12.4 6.9% 6,838 9.0% Toyota RAV4 312 366 -14.8 3.0% 3,100 4.1%

Mitsubishi 707 766 -7.7 6.8% 5,380 7.1% Mazda CX-5 310 288 7.6 3.0% 2,570 3.4%

Kia 602 592 1.7 5.8% 5,168 6.8% Nissan Qashqai 310 193 60.6 3.0% 1,841 2.4%

Suzuki 560 562 -0.4 5.4% 4,925 6.5% Kia Sportage 306 323 -5.3 3.0% 2,646 3.5%

Nissan 521 456 14.3 5.0% 3,838 5.1% Mitsubishi Outlander 264 254 3.9 2.6% 2,078 2.7%

Honda 410 489 -16.2 4.0% 3,926 5.2% Suzuki Swift 252 275 -8.4 2.4% 2,268 3.0%

Ford 399 468 -14.7 3.9% 3,227 4.3% Holden Commodore 226 161 40.4 2.2% 1,325 1.7%

Volkswagen 386 366 5.5 3.7% 2,857 3.8% Mitsubishi ASX 212 317 -33.1 2.1% 1,976 2.6%

Tesla 379 36 952.8 3.7% 540 0.7% Holden Equinox 207 116 78.4 2.0% 952 1.3%

Subaru 281 325 -13.5 2.7% 2,820 3.7% Hyundai Tucson 204 142 43.7 2.0% 1,899 2.5%

Audi 175 175 0.0 1.7% 1,270 1.7% Hyundai Kona 203 112 81.3 2.0% 1,457 1.9%

BMW 169 129 31.0 1.6% 1,326 1.7% Volkswagen Tiguan 193 151 27.8 1.9% 1,088 1.4%

Mercedes-Benz 148 191 -22.5 1.4% 1,627 2.1% Nissan X-Trail 166 212 -21.7 1.6% 1,477 1.9%

Skoda 145 133 9.0 1.4% 1,135 1.5% Holden Acadia 161 0 16,100.0 1.6% 658 0.9%

Land Rover 96 69 39.1 0.9% 1,009 1.3% Honda Jazz 152 105 44.8 1.5% 1,172 1.5%

MG 94 0 9,400.0 0.9% 332 0.4% Mitsubishi Eclipse Cross 149 125 19.2 1.4% 785 1.0%

Lexus 83 81 2.5 0.8% 668 0.9% Honda HR-V 131 189 -30.7 1.3% 1,169 1.5%

Jeep 78 143 -45.5 0.8% 666 0.9% Suzuki Vitara 119 85 40.0 1.2% 981 1.3%

Mini 70 35 100.0 0.7% 569 0.8% Hyundai Santa Fe 113 143 -21.0 1.1% 1,156 1.5%

Jaguar 62 39 59.0 0.6% 427 0.6% Ford Escape 112 128 -12.5 1.1% 848 1.1%

SsangYong 61 68 -10.3 0.6% 642 0.8% Holden Trax 110 48 129.2 1.1% 814 1.1%

Peugeot 60 57 5.3 0.6% 642 0.8% Toyota Camry 105 77 36.4 1.0% 713 0.9%

Haval 55 42 31.0 0.5% 529 0.7% Subaru XV 104 117 -11.1 1.0% 979 1.3%

Volvo 50 72 -30.6 0.5% 489 0.6% Holden Astra 100 69 44.9 1.0% 592 0.8%

Citroen 33 17 94.1 0.3% 214 0.3% Honda CRV 100 138 -27.5 1.0% 1,146 1.5%

Porsche 33 34 -2.9 0.3% 333 0.4% Hyundai Elantra 100 0 10,000.0 1.0% 103 0.1%

Mahindra 19 3 533.3 0.2% 112 0.1% Ford Focus 90 100 -10.0 0.9% 725 1.0%

Isuzu 17 20 -15.0 0.2% 165 0.2% Toyota Fortuner 90 44 104.5 0.9% 320 0.4%

Renault 13 23 -43.5 0.1% 180 0.2% Volkswagen Golf 90 57 57.9 0.9% 751 1.0%

Seat 13 9 44.4 0.1% 120 0.2% Mazda Mazda2 90 87 3.4 0.9% 800 1.1%

Can-Am 12 4 200.0 0.1% 60 0.1% Mazda CX-3 88 146 -39.7 0.9% 820 1.1%

LDV 12 7 71.4 0.1% 54 0.1% Subaru Forester 88 78 12.8 0.9% 795 1.0%

Others 44 61 -27.9 0.4% 534 0.7% Others 3,263 3,694 -11.7 31.6% 30,157 39.8%

Total 10,322 9,431 9.4 100.0% 75,848 100.0% Total 10,322 9,431 9.4 100.0% 75,848 100.0%

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships September 2019 ( vs August 2019) S S Web - Classified 5.2% Web - Classified 1.7% S Web - Classified 2.8% T E E D S V

Web - Dealer Direct L Web - Dealer A 2.8% I 1.0% 9.4% E A R E

L Brand 13.1% T D Web - Dealer 17.3% S Repeat 1.1% Smart Digital Tools

38 www.autofile.co.nz Boom times for electric cars ales of new passenger of 21.6 per cent thanks to 2,226 you have to tick the box in all Armstrong believes buying a vehicles in September sales. It was followed by Holden five. If you can do that, then new vehicle rather than a used came in at 10,322 units for on 8.5 per cent with 877 units. your business will be fine. You one makes better sense because San increase of 9.4 per cent – or Hyundai came third with 7.4 per have to balance it out between finance plans can be adapted to by 891 units – when compared cent and 721 registrations. all departments to get the suit individuals’ circumstances. to 9,431 in the same month of Rick Armstrong, managing profitability right.” “They can often get extremely last year. The year-to-date total director of the Armstrong Group, Armstrong told Autofile his low finance rates, servicing plans now stands at 75,848 units, down says all aspects of dealerships company, as a group, “focuses can be included in purchase 4.3 per cent on the same period need to work well in tandem and very much on the service side prices and you get extended last year. high levels of customer retention of our business, retaining our warranties, so customers Trade was boosted last month through positive experiences customers and delivering good know they aren’t up for any by a boom in electric vehicles for buyers is one of the keys to experience”. unnecessary maintenance or (EVs) and rentals, reports David running a successful company. He adds: “That goes hand repair bills. Buyers are now Crawford, chief executive officer This is especially the case with in hand with sales of parts, but better educated in terms of what of the Motor Industry Association. the ever-evolving way consumers we also have to make sales of they want and how they want to There were 500 sales of pure interact with businesses and new and used vehicles work in purchase vehicles, and what they EVs during the month, while 105 technology impacts on the way conjunction with each other. On want to pay for them.” plug-in hybrids were registered. vehicles are purchased. top of that, there’s the income For the first time, registrations “The future of dealerships is from the finance and insurance THE OVERALL MARKET of a pure EV broke into the top in a phase of change,” he says. “In department. If you tick all the Looking at the bigger picture, three for passenger cars and order to keep up with that, you boxes in all five departments a total of 14,525 new vehicles SUVs with 359 Tesla Model 3s have to really keep your eye on then you don’t have to knock it were sold in New Zealand during being sold during September to the ball and be on your toes. out of the park in any of them. September – up by 4.4 per cent, takes its total registrations to 419 “Survival in our industry “You just have to do a good job or 615 units, on the same month so far in 2019. hinges on management ticking in all of them. You don’t want to be in 2018. However, the total Year to date, 1,406 new all the boxes and running really an absolute rock star of a used-car market to the end of last month pure EVs have been registered good operations. dealer and allow the other four was down by four per cent – or compared to 768 units for the “We have five departments departments to fall over.” by 5,803 units – on the first nine whole of 2018. in a new-car dealership and As for purchasing decisions, months of 2018. Last month’s top-selling “September continued the model in the passenger-vehicle New Passenger Registrations - 2016-2019 up-and-down pattern in the market was Toyota’s Corolla on 12,000 2019 market,” says Crawford. “In 1,011 units, of which 736 were addition to strong sales of EVs, rentals. It was followed by the 11,000 some distributors had a good marque’s Yaris on 432 units and month with Holden rocketing up the Tesla Model 3. Toyota’s RAV4 10,000 the charts and Toyota enjoying with 312 units and Mazda’s CX-5 a massive September mainly off on 310 rounded off the top five. 9,000 the back of rentals.” As for rentals, September’s Toyota was September’s top four were all Toyotas – the 8,000 top overall marque with a 21 Corolla with 1,877 units, the per cent market share thanks 2016 RAV4 with 555, Yaris with 494 7,000 2017 to 3,007 registrations. It was units and Land Cruiser Prado 2018 followed by Holden with nine 2019 with 383. 6,000 per cent and 1,333 units. Ford Toyota also topped the ladder Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec slipped to third spot with nine for brands with a market share per cent and 1,291 sales.

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships September 2019 ( vs August 2019) S S Web - Classified 5.2% Web - Classified 1.7% S Web - Classified 2.8% T E E D S V

Web - Dealer Direct L Web - Dealer A 2.8% I 1.0% 9.4% E A R E

L Brand 13.1% T D Web - Dealer 17.3% S Repeat 1.1% Smart Digital Tools

www.autofile.co.nz 39 Sales of utes take a tumble eptember was the first really had a lot of utes because we New Commercial Sales - 2016-2019 month of the year that pick- didn’t sell new ones.” 6,000 2016 ups and chassis four-by-fours 2017 His business holds franchises for failedS to make in into the top three 5,500 2018 Foton and Hyundai, and he points 2019 segments for new-vehicle sales in 5,000 out the latter is about the only New Zealand. major brand without a new utility. 4,500 According to the Motor Industry “Foton is between models, so Association, the top segment 4,000 nothing much is happening there at was medium SUVs with a market 3,500 the moment, but we have sold about share of 18 per cent, followed by 120 new utes,” Baxter told Autofile. compact SUVs on 14 per cent and 3,000 “The market for them down here is small cars with 12 per cent. 2,500 about 80 per cent of the passenger- As for sales of new commercial Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec vehicle market – it’s huge. vehicles last month, they came in “Sedans are disappearing and at 4,203 – down by 6.1 per cent registrations. Next up was Toyota’s marque thanks to 892 registrations. I have found the big switch in and 274 units compared to 4,477 Hilux with a 14.3 per cent market Toyota came second with 781 units buyer demand for SUVs surprising. registrations in September 2018. share and 603 units, while Holden’s and Holden was third on 456. I think the amount of retail stock in The Ford Ranger retained Colorado came third with 10.7 per Robbie Baxter, who is selling Invercargill is realistic. We don’t have the top spot in this sector with a cent and 449 units. his Invercargill business – Robbie market highs and lows, and we are 19.4 per cent share thanks to 814 Ford was the best-selling Baxter Autos – says: “We’ve never somewhat insulated down here.”

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

SEP ’19 2019 YEAR 2019 SEP ’19 2019 YEAR 2019 MKT MAKE SEP ’19 SEP ’18 +/- % MAKE MODEL SEP SEP +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Ford 892 901 -1.0 21.2% 8,193 21.0% Ford Ranger 814 802 1.5 19.4% 7,285 18.7% Toyota 781 989 -21.0 18.6% 7,060 18.1% Toyota Hilux 603 667 -9.6 14.3% 5,341 13.7% Holden 456 287 58.9 10.8% 3,881 10.0% Holden Colorado 449 279 60.9 10.7% 3,822 9.8% Mitsubishi 386 452 -14.6 9.2% 4,239 10.9% Mitsubishi Triton 386 451 -14.4 9.2% 4,237 10.9% Isuzu 260 299 -13.0 6.2% 2,383 6.1% Nissan Navara 184 254 -27.6 4.4% 2,683 6.9% Mercedes-Benz 202 113 78.8 4.8% 972 2.5% Mazda BT-50 173 201 -13.9 4.1% 1,808 4.6% Nissan 184 254 -27.6 4.4% 2,684 6.9% Toyota Hiace 150 290 -48.3 3.6% 1,474 3.8% Mazda 173 201 -13.9 4.1% 1,808 4.6% Isuzu D-Max 148 197 -24.9 3.5% 1,433 3.7% Volkswagen 118 132 -10.6 2.8% 1,100 2.8% Mercedes-Benz Sprinter 143 74 93.2 3.4% 528 1.4% LDV 110 126 -12.7 2.6% 1,020 2.6% Fiat Ducato 86 111 -22.5 2.0% 512 1.3% Fiat 87 111 -21.6 2.1% 516 1.3% Ford Transit 77 99 -22.2 1.8% 907 2.3% Fuso 87 133 -34.6 2.1% 668 1.7% Isuzu F Series 59 45 31.1 1.4% 421 1.1% Hyundai 64 80 -20.0 1.5% 761 2.0% Hyundai iLoad 59 78 -24.4 1.4% 727 1.9% Hino 56 60 -6.7 1.3% 546 1.4% Volkswagen Amarok 58 73 -20.5 1.4% 539 1.4% Great Wall 44 20 120.0 1.0% 310 0.8% Great Wall Steed 44 20 120.0 1.0% 310 0.8% Scania 38 23 65.2 0.9% 173 0.4% Isuzu N Series 43 38 13.2 1.0% 336 0.9% Iveco 37 26 42.3 0.9% 246 0.6% LDV V80 43 40 7.5 1.0% 373 1.0% Renault 31 21 47.6 0.7% 217 0.6% Mercedes-Benz X-Class 32 13 146.2 0.8% 262 0.7% DAF 28 15 86.7 0.7% 201 0.5% LDV G10 31 20 55.0 0.7% 298 0.8% Volvo 23 25 -8.0 0.5% 249 0.6% Hino 500 28 35 -20.0 0.7% 300 0.8% Others 146 209 -30.1 3.5% 1,710 4.4% Others 593 690 -14.1 14.1% 5,341 13.7% Total 4,203 4,477 -6.1 100.0% 38,937 100.0% Total 4,203 4,477 -6.1 100.0% 38,937 100.0%

Setting the Benchmark 6 Ports in Japan. 7 Ports in New Zealand

SPEED, SERVICE, VALUE & INDEPENDENCE

40 www.autofile.co.nz Registrations lagging behind last year here were 902 used Japan and they aren’t part of the Used Commercial Sales - 2016-2019 commercial vehicles sold in 1,300 second-hand market there. Those September – a 10.8 per cent vehicles being sold used in New 1,200 Tdrop on the same month of last year Zealand are NZ-new. when 1,011 were registered. 1,100 “While there’s a big demand for The year-to-date total now new utes in New Zealand, I don’t 1,000 stands 8,394, which is a decrease of see the same demand for second- 803 units compared to the first nine 900 hand utilities because the financial months in 2018 when there were packages aren’t available for them 800 2016 9,197 registrations. 2017 like they are for new utes.” Most regions recorded drops with 700 2018 However, Murrell doesn’t expect 2019 the biggest being in Wellington by 600 to see Kiwis’ love-affair with utilities 49.2 per cent – from 63 registrations Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec and SUVs ending anytime soon. in the same month of last year “If you took utes and SUVs out of compared to 32 last month. It was few years ago and still works in the new vehicles in New Zealand are the sales charts, there aren’t many followed by Gisborne and Invercargill, industry, agrees with many other the Ford Ranger, Toyota Hilux cars left. That’s not only happening which recorded decreases of 42.9 and dealers spoken to by Autofile that and Mitsubishi Triton, but dealers in New Zealand, it’s a worldwide 42.7 per cent respectively. conditions have never been so cannot buy them second-hand from trend. I think hybrid utes and SUVs Alan Murrell, who owned tough for the industry. overseas markets,” he says. could work well in rural areas for Redwood Motors in Rotorua until a “The three biggest-selling “They aren’t really sold new in people towing boats and trailers.”

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

SEP ’19 2019 YEAR 2019 SEP ’19 2019 YEAR 2019 MKT MAKE SEP ’19 SEP ’18 +/- % MAKE MODEL SEP ’19 SEP ’18 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 410 489 -16.2 45.5% 3,845 45.8% Toyota Hiace 313 366 -14.5 34.7% 2,914 34.7% Nissan 233 187 24.6 25.8% 1,946 23.2% Nissan NV200 62 25 148.0 6.9% 448 5.3% Isuzu 43 61 -29.5 4.8% 390 4.6% Nissan Caravan 58 56 3.6 6.4% 551 6.6% Hino 42 37 13.5 4.7% 336 4.0% Nissan NV350 49 37 32.4 5.4% 370 4.4% Mazda 37 62 -40.3 4.1% 380 4.5% Toyota Dyna 32 32 0.0 3.5% 326 3.9% Mitsubishi 30 36 -16.7 3.3% 272 3.2% Isuzu Elf 31 36 -13.9 3.4% 274 3.3% Ford 25 31 -19.4 2.8% 343 4.1% Nissan Vanette 31 35 -11.4 3.4% 219 2.6% Holden 12 16 -25.0 1.3% 132 1.6% Mazda Bongo 30 52 -42.3 3.3% 273 3.3% Volkswagen 12 6 100.0 1.3% 71 0.8% Hino Dutro 29 22 31.8 3.2% 225 2.7% Suzuki 9 14 -35.7 1.0% 53 0.6% Toyota Toyoace 24 18 33.3 2.7% 184 2.2% Iveco 8 3 166.7 0.9% 17 0.2% Toyota Regius 23 51 -54.9 2.5% 251 3.0% Chevrolet 7 17 -58.8 0.8% 122 1.5% Nissan Atlas 16 22 -27.3 1.8% 187 2.2% Fiat 4 9 -55.6 0.4% 111 1.3% Mitsubishi Canter 13 14 -7.1 1.4% 146 1.7% GMC 4 4 0.0 0.4% 35 0.4% Ford Ranger 11 9 22.2 1.2% 115 1.4% Kenworth 3 2 50.0 0.3% 21 0.3% Holden Colorado 9 9 0.0 1.0% 65 0.8% Volvo 3 1 200.0 0.3% 25 0.3% Toyota Hilux 9 15 -40.0 1.0% 89 1.1% Citroen 2 1 100.0 0.2% 13 0.2% Nissan Navara 9 7 28.6 1.0% 81 1.0% DAF 2 3 -33.3 0.2% 16 0.2% Hino Ranger 9 9 0.0 1.0% 76 0.9% Daihatsu 2 2 0.0 0.2% 28 0.3% Suzuki Carry 8 13 -38.5 0.9% 51 0.6% Dodge 2 7 -71.4 0.2% 39 0.5% Volkswagen Amarok 6 4 50.0 0.7% 36 0.4% Others 12 23 -47.8 1.3% 199 2.4% Others 130 179 -27.4 14.4% 1,513 18.0% Total 902 1,011 -10.8 100.0% 8,394 100.0% Total 902 1,011 -10.8 100.0% 8,394 100.0%

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www.autofile.co.nz 41 Tide’s turning for car sales he chief executive of The marques are expected to launch Queenstown, but business build- increasing its momentum. We are Colonial Motor Company their first electrified products up has been held back by difficulty purchasing further land adjacent says the tide has turned for locally next year. in employing suitably skilled staff. to the Stevens Motors site, and theT new-vehicle industry with sales The company continues to plan Macaulay Motors’ new facility undertaking planning for brand down by more than five per cent a range of projects, including the in Queenstown opened in January, and operational needs. year on year. upgrade of existing facilities and but in May suffered a serious “We expect to start work on the Graeme Gibbons says this building new ones, “all of which setback when a fire resulted in Ford showroom in January and follows nine years’ continuous have increasing timeframes to major damage to the workshop. the Mazda showroom in May. We growth, but product remains the complete”. “The losses were fully insured will progressively move facilities “cornerstone of a dealership’s “These involve the latest and the workshop will be restored until we exit the Taranaki Street business and good old-fashioned brand presentations and, in to ‘as new’,” says Gibbons. “Work is showroom by October 31, 2020.” service is key”. most instances, the expansion of due for completion in November In terms of new-car stock He adds: “The electrification of service capacity,” says Gibbons. and, until then, the dealership will numbers, there were 11,006 vehicles is gaining pace and our “[This] is needed to service our be maintaining customer service imported in September, which future success will be linked to expanding customer base and using a restricted number of was up by six per cent on the same the desirability of the vehicles our meet unprecedented levels of service bays at the previous site. month of last year and up 11.1 per franchisors provide.” product recalls. Recalls are driven “The new retail service centre cent on August 2019. A surge in In the company’s annual report, on a worldwide basis, the most for Capital City Ford and Mazda in sales came in at 10,322 units – up Gibbons notes while Ford’s Ranger prominent of which has been for Taranaki Street, Wellington, has by 9.4 per cent on September 2018. continues to be New Zealand’s Takata airbags.” been progressively occupied over This left a variance rise of best-selling model, he describes Southern Lakes Motors is the past three months. 684 to take the number of Mazda’s CX range as “a strong benefiting from a new dealership “The process to create a unregistered new cars to 85,078 player in growth segments of the for Mitsubishi and Nissan at Wellington regional hub for – up by 1.3 per cent on the same passenger market”, while both the former Macaulay’s site in Ford and Mazda in Lower Hutt is month of last year.

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

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

Sep ‘18 10,382 9,431 951 84,000 298 282 280 Oct ‘18 9,921 11,765 -1,844 82,156 300 274 Nov ‘18 7,820 9,543 -1,723 80,433 298 270 260 Dec ‘18 9,317 7,681 1,636 82,069 296 277 September 2017 — September 2018 Jan ‘19 7,191 9,942 -2,751 79,318 294 270 240 Feb ‘19 7,787 7,578 209 79,527 295 270 Mar ‘19 8,346 8,425 -79 79,448 293 271 220 Apr ‘19 7,978 6,778 1,200 80,648 293 276 200 May ‘19 7,725 7,624 101 80,749 288 280 Jun ‘19 8,810 8,748 62 80,811 285 283

Days of stock 180 Jul ‘19 10,107 7,925 2,182 82,993 285 291

Aug ‘19 9,907 8,506 1,401 84,394 285 296 160 Sep ‘19 11,006 10,322 684 85,078 287 296

Year to date 78,857 75,848 3,009 140 Change on last month 11.1% 21.3% 0.8% 0 Change on Sept 2018 6.0% 9.4% 1.3% OCT SEP JUL SEP FEB NOV APR DEC JAN JUN AUG MAY MORE IMPORTED MORE SOLD MORE STOCK MAR

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42 www.autofile.co.nz Scrappage scheme considered he government is The idea is now is the hands of cost $400 per vehicle, and produced numbers reducing compared to investigating whether an government officials with Genter estimated social and health benefits the same month of last year. initiative to encourage expecting to be updated later of $340 to $871 per unit. Some 9,195 units crossed the peopleT to scrap their bangers this month. If a scheme does go But a 2009 trial in Christchurch border last month, which was down would help speed up the removal ahead, it’s likely to initially be and Wellington, which lasted by 0.5 per cent on September 2018 of old vehicles from our roads. a trial to establish the best way about a month, was unsuccessful. and down by 25.3 per cent on The idea is being floated by Julie for it to be effective at getting It showed a scheme was unlikely August’s 12,307. However, 11,630 Anne Genter, Associate Minister better fleet outcomes and to be cost-effective due to the used cars were registered for the for Transport, who is interested in ensuring people on low incomes low number of vehicles received, first time – up by 0.8 per cent on following in the footsteps of overseas are supported when shifting to and low overall social and the same month of last year but jurisdictions to use it “as a just “cleaner transport options”. environmental benefits, relative to down by 5.9 per cent on August. transition” to a lower-emissions fleet. The average age of New Zealand’s costs, according to the MoT. When taking into account last Scrappage schemes are usually light-passenger fleet in 2017 was That trial highlighted a lack of month’s used-car imports minus in places such as the UK, which 14.4 years. In comparison, the public awareness about how to registrations, there was a variance of have car manufacturing plants, and average age in the US was 11.6 years safely dispose of cars and the costs 2,435 units resulting in a decrease are used to incentivise consumers in 2016 and 10.1 years in Australia. involved. “Twenty-five per cent of stock on-hand to 30,813. This was to buy new vehicles. In an April 2018 draft paper, of participants in 2009 thought it a drop of 2.6 per cent on the same Genter says: “The general thrust Genter looked at local and overseas would cost money to dispose of month of last year. is that older vehicles are able to be precedents for a scheme to help vehicles”, even though cars in the There are now 80 days’ stock on- scrapped and you receive some encourage people to surrender two cities had value as scrap metal. hand, or 2.6 months’ worth, if sales sort of incentive for doing so – ageing vehicles, including two As for current stock statistics, continue at the same rate. Average whether that’s a public-transport Ministry of Transport (MoT) trials in September was a relatively flat daily sales of 387 in September pass, credits towards a cleaner car 2007 and 2009. month in terms of imports and were down by 42 units compared or a different type of vehicle.” A scheme in Auckland in 2007 sales of used cars, with stock to the same month in 2018.

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

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

160 Sep ‘18 9,245 11,533 -2,288 31,637 429 74 Oct ‘18 8,669 12,100 -3,431 28,206 423 67 140 Nov ‘18 11,301 11,156 145 28,351 413 69 Dec ‘18 12,448 11,061 1,387 29,738 404 74 120 Jan ‘19 13,433 11,598 1,835 31,573 399 79 Feb ‘19 8,537 11,129 -2,592 28,981 396 73 100 Mar ‘19 13,236 11,852 1,384 30,365 396 77 September 2018 — September 2019 Apr ‘19 13,316 10,883 2,433 32,798 396 83 80 May ‘19 15,093 13,420 1,673 34,471 396 87 Jun ‘19 10,913 11,177 -264 34,207 392 87 60 Days of stock Jul ‘19 11,878 12,791 -913 33,294 389 86 September 2017 — September 2018 40 Aug ‘19 12,307 12,353 -46 33,248 386 86 Sep ‘19 9,195 11,630 -2,435 30,813 387 80

20 Year to date 107,908 106,833 1,075 Change on last month -25.29% -5.9% -7.3%

Change on Sept 2018 -0.5% 0.8% -2.6% OCT SEP JUL SEP FEB NOV APR DEC JAN JUN AUG MAY MAR LESS IMPORTED MORE SOLD LESS STOCK

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