Volkswagen Backs Dealers Amid Scandal

VOLUME 6 ISSUE 9 OCTOBER 2015

“MOTIVATING WITH MONEY” FIND OUT ON PAGE 20 Volkswagen backs dealers amid scandal

olkswagen New Zealand says it and 29 Rapids. is supporting and working with This doesn’t necessarily mean that Vits dealer network as the inter- the vehicles fail the European emissions national emissions cheating standards that they would have NZ Car of the scandal rolls on. entered the New Zealand market General manager Tom under – this is currently unknown. Ruddenklau told AutoTalk How VW New Zealand will fix Year finalists yesterday that 4639 New these vehicles is also unknown - it Zealand-sold vehicles carry is still waiting for word from Ger- announced the software allowing the many. There have been sugges- car to cheat American- tions this could just be a software he finalists of the New mandated nitrous oxide Tom Ruddenklau patch, but it may also include Zealand Car of the Year have emission tests. items like fuel system components. Tbeen announced. Around 1600 Audi vehicles, including The worst-impacted vehicles are The NZ CotY is a joint-venture A3, A4 and Q5 models are impacted, 2009-2015 2.0-litre diesel Tiguan between the Automobile Associa- while affected Skoda vehicles include models, at 1411 units, followed by tion and New Zealand Motoring 535 Superbs, 497 Octavias, 267 Yetis Continued on page 43 Writers Guild, with both organisa- tions working together to pick a INSIDE shortlist of ten vehicles launched in AHG continues expansion 3 the last year, before motoring jour- Aussie write-offs discussed 4 nalists vote to choose a winner. Colonial adds French flair 7 Read about the finalists on page We focus on finance 29 3 7 28.

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he New Zealand branch of Australasia’s MANAGING EDITOR largest dealer group, Automotive Hold- Richard Edwards Tings Group, has shown its continuing 021 556 655 intent to grow, making another Auckland [email protected] acquisition. The company has acquired West Auckland PUBLISHER Nissan from Sime Darby to add to its grow- Vern Whitehead ing list of dealerships, which include the John 021 831 153 Andrew and North Harbour Ford and Mazda [email protected] operations, and Davie Motors Holden and treated as a full dealership, independent of Manukau Nissan in South Auckland. the Manukau Nissan operation. The new dealership was a branch of City The existing staff are being retained, with CHIEF REPORTER Robert Barry Nissan, but AHG NZ chief financial of- branch manager Jonathan Martin moving to 022 0180 998 Continued on page 47 ficer Paul Bruce says the dealership will be [email protected]

SALES MANAGER Dale Stevenson WINGER SPLIT A POSITIVE MOVE 021 446 214 [email protected] he well known Winger group of dealer- more on the brands we deal with on a day ships has spilt in two – in what is said to day basis,” he says, noting the brands he OPERATIONS Tto be an amicable and well-received has taken on are the ones he was already MANAGER move. managing. Deborah Baxter Grant Vincent, who has been with the “The split was very simple, the things I 027 530 5016 [email protected] group for 30-years, 20-years of which was had been controlling I purchased, and the as a shareholder in partnership with Wayne things that he is controlling, he retained.” Leach, is exiting his stake in the group overall, “It was an opportunity for me to do it IDENTICAR and taking ownership of three of the com- completely on its own.” MANAGER panies Greenlane-based franchises – Kia, He says he has received strong support John Stephens Hyundai and Isuzu. from the distributors. 027 530 5023 [email protected] The deal also includes the nearby vehicle “I was very very humbled by the response preparation centre and Henderson service from all three brands,” he notes. “They were Auto Media Group Limited makes centre. responsive and willing to back me all the way every endeavour to ensure They will run under the Auckland Vehi- to the bank.” information contained in this cles banner, as Auckland Hyundai, Auckland Vincent is taking 78 staff with him as part publication is accurate, however Isuzu, and at the request of Kia New Zea- of the deal, and other than working out some we are not liable for any losses or issues resulting from its use. land, Auckland City Kia. currently shared administration, there will be Annual subscription: Vincent says the move is very amicable. little change. $72 + gst ($82.80) “Well and truly,” Vincent says. “it was actu- Originally based in Hamilton, Winger went Printed by: Alpine Printers. ally touted by Wayne in he first place.” from one brand to representing more than “As the group has grown bigger and big- 10 brands across 12 sites throughout the ger, we needed the ability to focus more and country.

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Aussie imports put buyers write off

MATT GREENOP ister of cars that have been ublicity around Austra- written-off by insurance lian-sourced write offs companies, and Christopher Pbeing sold into New Dear’s Holden was on the Zealand have sparked alarm list. It was flagged as dam- throughout mainstream me- aged when it came into New dia - but “it isn’t a big deal,” Zealand. says IMVIA chief exec David Ozcars claimed it had and we have no problem fully informed of the vehi- Vinsen. told Dear of cosmetic dam- with this or have any rea- cle’s history. The drama was sparked age that the car had sus- son not to disclose this as it It also noted that the by a Motor Vehicle Disputes tained and told him about is clearly displayed on our damage was more than Tribunal complaint, which the process that could get CINs and this is our busi- cosmetic and the buyer had saw a customer of Ozcars the car certified. ness model,” Ozcars told the been misled, but ruled the Ltd unhappy after discover- “We accept the car was Tribunal. car was of acceptable qual- ing a Holden Crew Cab he’d a statutory write-off in Aus- It found that damaged flag ity, and had “no choice” but bought was deemed a statu- tralia, as are most car being had been removed by NZTA do dismiss Dear’s compensa- tory write-off in Australia. imported from there. Most of because it wasn’t structurally tion application. The Australian Financial our vehicles carry a ‘dam- compromised, but said the This is by no means an Security Authority has a reg- age’ flag for various reasons customer should have been Continued on page 47

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Colonial continues growth as market softens

ew Zealand’s only in recent years sales this year Principals and their staff listed dealer group, have softened - have continued remain focused on making NColonial Motor slightly. to be strong - the most of every opportu- Group, is continuing to grow “Following although primarily nity and earning our custom- its network, despite noting four years of ris- driven by rental ers’ loyalty with exceptional a softening in the overall ing profitability sales. service levels,” Gibbons says. market. this year has seen “Overhang- Gibbons says fortunes The company last month a small reduction ing the industry have been mixed for the announced that for the year on last year’s re- is the eventual brands it represents. to the end of June, revenue cord result,” Gib- flow-through into “We have experienced was up 12.9% to $789 million, bons says. “The vehicle prices mixed fortunes in our car while net profit after tax was external factors of the materi- dealerships,” he says in the up 7.4% to $18.705 million. that contributed ally reduced NZ report. “In an increasing In its 97th annual report, in 2014 – a grow- exchange rate industry, the sheer numbers released in anticipation of ing vehicle market, good and the constrained primary of vehicles sold have not its annual general meeting exchange rates for imported sector incomes in some, but reflected through the busi- on October 17, chief execu- products and desirable new not all, export products,” he ness because volumes were tive Graeme Gibbons noted vehicles - have softened in explains. achieved for less reward.” the economic factors that 2015.” “As a business and dealer- “The Ford brand is reliant have boosted the company In his outlook, he notes ship group we, our Dealer Continued on page 6

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AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 5 NEWSTALK

Colonial continues growth as market softens

Continued from page 7 Gray operations in Christch- “Southpac Trucks have ex- customers.” on a single product, the urch, Wellington, Manawatu cellent products in Kenworth In Southland and Otago Ford Ranger, which became and Hawkes Bay have now and DAF that are eminently he notes Colonial’s trac- the number one selling been with the group across a suited to NZ’s high utilisation tor business is battling the commercial vehicle in 2014 full financial year - and made heavy truck market. South- dramatic reversal in fortunes and continues as the most a positive contribution to the pac Trucks’ continued suc- of the dairy industry and the popular new vehicle in 2015 group. cess comes with a dedication understandable reluctance of to date,” he notes. “How- Gibbons notes there will to supporting the product farmers to spend in the short ever, the overall Ford market need to be investment in with unsurpassed service to term. share has declined. facilities. “Mazda’s improving “We have significant facil- market share is based on a ity planning ahead as the Dealership developments: strong and universally ac- premises in all four locations knowledged passenger and are leased and over time Colonial has been making significant investments in its SUV range – notably Maz- changes will be needed for facilities with more to come: da2, Mazda3, the ‘like never business delivery and re- • At Southpac Trucks they are in the final steps of a before’ new Mazda CX3 and quirements of the franchise.” complete makeover of the facility at Wiri Station CX5.” Gibbons says they have a Road, Manukau City. The BMW and MINI Jeff good truck offering. • At South Auckland Motors in Manukau City they have rebuilt the Mazda showroom, then refurbished and reconfigured the Ford and Mazda service operations with a new vehicle washbay. • Next door, they refitted and opened the new Southern Autos yard - see pages 7-8. • Opened a new service operation near Auckland Airport, with planning under way for another in the Takanini area. Specialists in • In New Plymouth, a refurbishment is underway for pre‑shipment inspections the Energy City Ford showroom. in Japan & UK  Full border inspections Aitken departs as  Authorised MPI inspections director  Authorised NZTA inspections

 Odometer verification ong-time Colonial Motor Company director Peter Aitken  Pre-export appraisal Lis retiring by rotation from the companies board at the annual gen-  Vehicle history reports eral meeting. Aitken, former managing director of Mazda New Zealand, has been a director since 2007. He is likely to be replaced by Ash- ley Waugh, who has held positions Peter Aitken with a number of significant New Zealand and Australian companies, including Fonterra. Early in his career is was JEVIC NZ marketing manager of Ford New Zealand and Ford Lio Ho in Taiwan. 09 966 1779 www.jevic.co.nz

6 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz NEWSTALK

Colonial adds French flavour

olonial Motor Company has Motor Company acquired the Jeff Gray franchises for Hyundai, Kia, Suzuki and officially opened its newest BMW and MINI businesses in Palm- Kawasaki motorcycles, Canam ATV, Cdealership, Southern Autos. erston North, Wellington, and Christch- Kymco ATV, New Holland and Case IH The new facility, on Great South urch more than 18 months ago, and as tractors, as well as Kenworth and DAF Road in Manukau, adds Peugeot, Citro- well as owning many Ford and Mazda heavy trucks. en, DS, and Isuzu Ute to the long-run- dealerships nationally. It also operates Continued on page 8 ning Ford and Mazda operation it owns on the neighbouring site. Colonial acquired the former Honda Cars site in the 1990s, according to chairman Jim Gibbons. It was leased for many years to a number of tenants, before the The New Zealand Automotive Industry’s software provider of choice dealership group acquired the European and Japanese franchises more than 12 months ago. The new build and the business expansion have been in planning for four to five years, and represent 35 Years 3,000 Clients 10,000 Users can’t be wrong! Automotive & Industry IT

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Southern Autos CEO Matthew Newman, Colonial Motor Group chairman Jim Gibbons, and brand ambassador Judith Collins MP NZ’s acclaimed Workshop Management System runs 50% of independent motor industry service and repair businesses. a $6.5 million investment. AUTOMOTIVE SERVICE IT Gibbons told guests at the official opening ceremony, that the investment in the Southern Autos TSI Group’s own computer hosting and cloud services division, and site was a major step forward for NZ’s largest automotive industry specialist IT services company. the company, which has been operating as a dealership group for more than 107 years. “We’ve got to widen the selec- proudly exports Kiwi know-how and expertise to the world with clients in 24 countries. tion of brands that we represent,” says Gibbons. “We are looking to expand the business for our shareholders, but to expand with incremental business and not cani- balise the business that we already have.” Contact: Paul Wilkinson [email protected] 09 5832482 0274475513 The Wellington-based Colonial

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 7 NEWSTALK

Colonial adds French flavour

Continued from page 7 Southern Autos dealer principal Andrew Craw says despite the team operating a dealership in a construction site from portable buildings, the company has retailed 112 Isuzu Utes, 49 Peugeot passenger cars and 17 Citroens in its 12 months and 25 days of operation. He thanked his team for all their efforts and commented to the guests that: “we treat our staff like family.” Southern Autos chief executive Matthew Newman also acknowledged the team members and thanked the builders, architect, and suppliers who had gathered at the opening for their support. Newman made a point of personally thanking the representatives from finance suppliers, UDC and Marac, for their ongoing support of the business. Isuzu New Zealand general Murray Greenhalgh congratulat- ed the Southern Autos team and said he had noted the positive culture, and commented that the dealership was already well respected for “going the extra mile.” The new showroom is also the first in New Zealand to offer a DS Salon, which Sime Darby Automobiles divisional manager Simon Rose says emulates the new brand message that he would like to see in other metropolitan dealerships. “We’re very proud to see the brand expansion into the South Auckland market,” says Rose. “We hope to see the DS Salon concept appear in other metropolitan dealerships, too.”

Expressions of Interest

Sime Darby Automobiles are the official factory representatives for Peugeot, Citroen and DS brands in New Zealand and are responsible for the importation, distribution and development of these brands in New Zealand. Due to significant growth in the New Zealand market place, we are looking to expand our operations to Northland and the Waikato regions which have been identified as potential growth regions. It is envisaged the new dealership will provide new vehicle retail sales operations to showcase the Peugeot, Citroen and DS brands, and will support the brands with appropriate parts and service facilities. This is an exciting opportunity to be part of the ongoing development of these brands, and work with the Sime Darby Automobiles Group.

Expressions of interest should be forwarded to: Dave Briscoe Dealer Development Manager M 021 905 784 | DDI (09) 571 4595 | E-mail [email protected]

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Australian dealer conference discussion – part 2

he New Zealand industry was well- AutoTalk was there, amongst the ly relevant to the New Zealand market. represented at the annual Austra- thousand-plus car dealers, and found Some of the biggest names in the Tlian Automotive Dealer Association the panel discussions were not only the American and Australian dealer markets Conference in Melbourne last month. most interesting sessions, but extreme- gave their take on topics that affect the industry both locally and globally. The expert panel was made up of Robert H. Kurnick Jr., president and chief executive of international Volkswagen New Zealand dealer-group Penske, which has trucking industry investments in New Zealand; Martin Ward, chief executive of AP Eagers; Bronte Howson, chief executive of Au- Head of Commercial Vehicles tomotive Holdings Group (which controls a number of large Auck- The Company: Volkswagen is the leading European Brand in New Zealand and is part of one of the land dealerships); Richard Emery, world’s most ambitious automotive Group. Volkswagen New Zealand is a privately owned chief executive of Nissan Australia, distributor with a consistent record of successive growth and development and has oversight of Nissan here; and Peter Welch, president of the The Role: US’ National Automotive Dealers The commercial vehicle sector in New Zealand is experiencing unprecedented growth. Association. Volkswagen Commercial vehicles is a separate operating division of Volkswagen New For the first part of our coverage Zealand and needs a dedicated leader to continue the drive and growth of sales. of the AADA conference panel dis- Volkswagen has one of the most complex and flexible range of commercial vehicles in the cussion, see the September issue country, including the Amarok Ute, Caddy, Transporter and Crafter Van range. Success of AutoTalk magazine. requires a true solution orientated thinker to unleash the full potential of the commercial Fixed price servicing has been vehicle offering introduced to improve customer relationship management, The role will encompass: genuine vs non genuine parts, and • Full ownership and P&L responsibility for the Commercial vehicle performance competition against the inde- • Deep liaison with Volkswagen Commercial vehicles in Hannover Germany on all aspects pendents. Is fixed price servicing of performance and associated support for the New Zealand Market • Active and proficient management of strategic key Corporate accounts the answer? • As a key member of the Leadership team, strategic input into the overall growth plans for Bronte Howson: I am a big fan Volkswagen in New Zealand of fixed pricing. It is a great way for • Establishing best practice processes, that are geared for future volume aspirations retention, as we have seen through our growth with manufacturers, The Successful Applicant: and with successful programs You will need the following: from Toyota and many other • Significant commercial acumen, with a solid understanding of the Automotive industry manufacturers. It does give you • A problem solving, can do attitude the ability to fight back against the • Ability to inspire, lead and motivate a nationwide Volkswagen dealer network non-genuine providers. We are in • A high degree of financial literacy an industry that has given away a • Significant technical and mechanical competency with the ability to build bespoke vehicle big part of the industry to outside solutions third-party people and I think this • The willingness to get back to basics to build the most successful commercial vehicle is a good way for OEM’s and deal- operation in New Zealand ers to fight back. For example, in New Zealand If this role sounds like you and you are up for the challenge, apply in confidence we have two Mazda dealerships in via email to Carolina Zalazar; [email protected] Auckland, and they have free servicing for the first three years. They have just introduced this year 3-5 Continued on page 11

10 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz NEWSTALK

Continued from page 10 cars are sold every year, spread across year service for $199 and that is directly 66 brands, across 2300 dealerships. competing against Ultratune and other So are there too many dealers in the third party providers Australian market or are there too We are all experts in upselling, that many brands? is the name of the game. We do a $99 Bronte Howson: At the moment servicing at AHG in Western Australia to we probably do have too many dealers get back delinquent accounts (cus- when you look at certain franchises, I tomers who have not come back for a can only speak on AHG’s experience scheduled service), and we are con- in the Perth metro area and I think we verting about 17 delinquent accounts have 9 or 10 Holden dealerships to per day, and that’s just the beginning which you can get to in 60 minutes, so of getting the customer back into the there is a lot of expense. dealership and making them feel com- about us making sure the customer has When you look at $17 billion worth fortable. no surprises and knows what they are in of facilities around Australia to sell 1.1 Richard Emery: There are a number for and that they can perceive that value. million new cars, and somewhere in the of franchises in New Zealand that offer How important is it for OEM’s that vicinity of 600,000 to 700,000 used cars, the free servicing package as a tool. But the customer does return for servicing? you have to say that we are certainly I think we need to be careful about the Richard Emery: It is critical in order over dealer-ised. term ‘fixed price servicing’. Consumer to maintain relationships with those Ford has declared they are reducing reaction is key, especially when they customers throughout the ownership the number of dealerships, Mitsubishi drop off their car in the morning thinking experience. It is somewhat ‘you’re 80% is considering doing the same, where they will spend $185, and then come of the way; for their next purchasing does Nissan stand? back in the afternoon and find the bill is decision, and indeed convincing their Richard Emery: There is an argument $350. friends and relatives that your dealership that we are over-capitalised in Australia, For me it’s about making sure we is one that they can build a relationship in terms of the retail network, but hav- have the ability to deliver an expectation with, not just in purchasing a vehicle, but ing said that, we have expensive assets, of value, whatever the price may be. The also in the maintenance of that vehicle. built on prime real estate. There are 168 term ‘fixed’ has been a little overused, it’s In Australia, roughly 1.1 million new Continued on page 12

TECHNICIANS Needed These are very exciting times for The group is amidst an Armstrong Motor Group as it sees unprecedented growth phase and Urgently! further expansion into the Auckland a substantial recruitment drive is market. CEO and owner Rick now underway. We are extremely Armstrong has just confirmed a third interested in speaking with skilled branch of the successful Auckland workshop staff but over 50 new roles City Toyota dealership will be joining will be created within one of the Positions sought include: his stable and that the group will most highly-regarded Automotive be taking over retail operations for retail networks in New Zealand, • Sales Consultants the Peugeot, Citroen and DS brands with candidates for everything from • Sales Managers in Auckland’s premier automotive junior positions to senior, business • Business Managers retail strip, Greenlane. critical roles being sought across Toyota, Peugeot, Citroen and DS • Service Advisors brands. • Workshop Controllers • Technicians The environment breeds and rewards high achievers as the group • Apprentice Technicians is known for establishing benchmark performance in process and • Warranty Clerks customer experience. • Parts Advisors All employment enquiries are welcomed and resumes outlining your • Reception / Admin skill set can be sent directly to the General Manager: • Call Centre Staff [email protected]

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 11 NEWSTALK

Australian dealer conference discussion – part 2

Continued from page 11 hours in a week, and we probably only use that asset for 60-70 hours, so there is no doubt we aren’t using the capital we have in place to its best extent. What is a concern is the duplication in capital across those 190 dealerships, in our case. There is no doubt that in the next 10-15 years we are going to have to come to terms with the business being over capitalised, or using the existing capital that we have, the bricks and mortar, for more hours per week. Peter Welch: I’m not an expert on Australia, but the ratio of car dealers in Australia is much higher than in the US. In the US the rates we use are 31,000 franchises and 17,000 dealerships for all those franchises. But the number I really look at is the number of dealer principals. At last count the number of DP’s was 1816, we grew by 420 or so dealerships last year but we lost an additional 200 DP’s so that ratio is much lower than it is here with fewer brands, but a population of 320 million Americans and selling roughly over 17 million new cars this year, and 15 to 16 million used. Robert Kurnick Jr: Some of the most successful brands in the US are brands that have fewer dealers today than what they had in 2001, like BMW and Porsche. I remember when this was “how do you a big debate in 2008-09 in the US, one politician said to me: “The more rooftops you have the more cars you sell.” Well that doesn’t make sense to me - the average Chevrolet store in the US sells 600-650 cars per year and the average Toyota store approach will sell north of 1200 and they have much fewer stores. How do you manage the expectation of who does what between OEM and dealer franchise in investments? profits?” Martin Ward: At the end of the day we will make all the appropriate investments in any brand, if we can see a com- Strategy plays an important part in mercial return in the future based on the business model that’s your business. presented to us. The one thing I feel that is changing, is I do believe that dealers now are not irrationally spending money Having the right partner, providing the right advice on a franchise if they can’t see the return. and support, will help change your approach, for How do you strike the balance between profitability and investment? the better. Martin Ward: There are no profitability guarantees in this With proven products, systems, training and business, so it comes down to the right partnership and trust. I support, Provident has the tools and the expertise would also argue that we need to put a greater investment into to help drive your performance. training people, and our investment in where the customer is finding themselves, as opposed to putting up more bricks and mortar. Introduce the Provident Profit Whether you are an independent, private, public or big or small dealer franchise, if manufacturers don’t think they can Factor into your business, make a return on investment from your business then they talk to Steve Owens or visit won’t invest. www.providentinsurance.co.nz If at the end of the day the OEMs can afford to have only 70% of its network at the level of investment that it would like, then that’s what is going to happen over the next decade, because something has to give in those OEM brands and dealer models, where they are not making an economic return.

12 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz DIARYTALK

affected owners. Toyota recalls Kia will be offering a rebate THE to Kia 2010 and 2011 Sportage imports Toyota New Zealand issued a AutoTalk's owners for the difference in recall for 420 vehicles – only managing editor ACC levy costs between Band sold here as used imports. looks at the 1 (lowest risk rating) and Band DIARY The recall is for Voltz and 4 (highest risk rating). This month gone by on Pronard models which were equates to $90.00 (GST inclu- Richard Edwards Richard AutoTalk.co.nz originally manufactured sive) for each customer. between December 2001 and Fuel quality under May 2004. These cars were originally review the subject of a recall in 2013 A review has been launched Proudly brought to you by for possible inadvertent de- into what is in the fuel power- ployment of airbags. ing New Zealand’s vehicles – with the aim of improving Third of parents emissions. The Ministry of Business, influenced by Innovation and Enterprise re- children on car sights as the main competitor leased a discussion document buying choices for the new Vitara, in a market proposing a range of changes In the United Kingdom, 78% September 1 that is moving to small SUV in to the Engine Fuels Specifica- of parents claim that their droves. tions Regulations 2011. children pressured them into The company says it ex- AA releases safety buying a new car and that for pects the Vitara will become 37%, the kids then went on to ratings its second biggest selling September 9 have a say in what type they The Automobile Association vehicle behind the Swift in the ended up purchasing. has released its 2015 Used Car next twelve months. New adjudicator for This came from a sur- Safety Ratings guide, which It is targeting sales in excess disputes tribunal vey conducted for UK Auto includes 220 models, and is of 1500 units and says it has A new adjudicator was ap- Trader, in August, pooling the based on real-world crash no issue with supply from the pointed to the Motor Vehicle views of 1000 parents and data from here and across the Hungarian factory where the Disputes Tribunal children aged between five Tasman. Vitara is produced. Justice minister Amy and 11. This year the guide shows Adams and minister of com- that 44% of used vehicles as- High altitude promo merce and consumer affairs sessed received an excellent for Audi Paul Goldsmith announced September 11 or good rating for occupant Audi New Zealand capped Wellington barrister Jason protection in a crash. off its involvement with the McHerron to the role for a ANCAP chief steps Audi Quattro Winter Games five-year term. down in Queenstown, by creating a “Mr McHerron is a highly The Australian New Car As- September 2 mountaintop restaurant – with respected barrister who brings sessment Program (ANCAP) food delivered by their cars. a wealth of experience to this chief executive officer (CEO), AIMVIA to meet with The ‘Quattro Bistro’ was role,” said Adams. “His skills Nick Clarke, will step down held at the top of the Pisa Japanese exporters and knowledge will see him at the end of September to Ranga in the Southern Alps. The Australian cousin of the make a good contribution to pursue other interests. Open for one day only Imported Motor Vehicle Indus- the Tribunal.” Clarke has been with the during winter games, and set try Association is to meet with organisation for 10 years, on an ice track, 20 lucky New the Japanese industry next holding a number of roles, Zealanders won a seat at the month. September 10 culminating in the role of bistro through an Audi test In its latest update, the CEO. In this time he built the drive competition, hosted by Australian Imported Motor Five-stars flow for well-known program to have celebrity chef, Simon Gault Vehicle Industry Association ANCAP a strong consumer recog- says it has scheduled to meet and experiencing his specially Two of Mazda’s new small nition and support across with the Japan Used Motor designed menu for the event. models came out of their Australia and the Asia Pacific Vehicle Exporters Association Australasian New Car Assess- region. in October. ment Programme testing with It has extended an invitation September 7 top marks. Car volume up for members to also attend. Kia calls foul on ACC Both the Mazda 2 and CX-3 35,000 units at Ports received five-stars in the lat- levy of Auckland est round of testing. Ports of Auckland said the September 4 Kia Motors New Zealand today Also landing five-stars were has become the first dis- volume of cars across the Nissan’s Navara dual cab, wharves increased 17.4% to New Vitara guns for tributor to publicly criticise the king cab and single cab utes, troubled Accident Compensa- 243,801 units from 207,591 in CX3 audience Holden Astra GTC, CTC Sport the previous financial year. Suzuki New Zealand has the tion Commission levy system and VXR and also Jeep’s Grand – and is to provide rebates to But it warned that there Mazda CX3 firmly in its gun- Cherokee. Continued on page 14

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 13 DIARYTALK

Proudly brought to you by Dealer offered September 17 middle east rally Air NZ to shift to opportunity electric fleet Dunedin rally driver – and Suzuki dealer – Emma Gilmour Air New Zealand launched a has been offered a place at a new Sustainability Framework, desert racing training camp in including plans for – where Qatar. possible – an electric road Continued from page 13 In November, she will be a 20% stake in Motor Trade fleet. will be slower growth in fu- exchanging New Zealand’s Finance. Chief executive officer ture car volumes. gravel roads for Qatar’s sandy The company said the Christopher Luxon unveiled “Multi-Cargo volumes have dunes after being chosen offer is not a takeover – a the framework along with sev- held up well, with car volumes out of 85 applicants from distinction they will need to eral sustainability initiatives at increasing 17.4% to a record 39 countries, to participate reinforce, with the MTF board an event for business leaders 243,801 units. Total break bulk in the joint FIA Women in strongly resisting a rumoured in Auckland. tonnage (including cars) was takeover plan by Marac-parent Motorsport and Qatar Motor up 4.4% on the year before,” Heartland. Tesla co-founder and Motorcycling Federation said Ports of Auckland chief They need the approval of (QMMF) cross country rally executive Tony Gibson. MTF’s board and shareholders heads to TEDx project. – many of whom are dealers – Christchurch to cross a current 10% limit on Tesla Motors co-founder Ian Turners to look for September 14 any one shareholder. Wright will come to Christch- further acquisitions urch specifically to deliver an Turners Limited is going to con- Peer-to-peer lending address at TEDx Christchurch tinue to seek acquisitions, and cracks 100 million September 16 2015: Think Again. may seek more capital do so. mark The Northland native co- The company held its founded Tesla Motors, which annual general meeting in Peer-to-peer lender Harmony Peugeot rationalises now has a market capitalisa- Auckland and reported strong – which counts TradeMe and with new 208 tion of more than US$30 bil- When the number of models results. Marac-parent Heartland as key lion and is famous worldwide you have is not far behind the At the AGM, chairman Grant investors – announced that its for its high-end electric cars. number of units you are mov- Baker said the company is lending had met the $100 mil- After leaving Tesla in 2005, ing, it may be time to rational- in a good position for future lion dollar mark. he started Wrightspeed, aimed ise your range. growth. Chairman Rob Campbell at revolutionising transport by That is what Peugeot’s said the company has been set- providing electric drive trains New Zealand distributor Sime ting no records in its first year. for industrial fleets. Darby has done with the latest September 21 update of its 208, cut from September 15 nine to just two models, a September 18 VW admits clean simpler range made possible diesel cheat Hyundai gunning for by the arrival of what Kiwi PSA brands to stay VW customers around the private buyer with buyers really want in a car – a world reacted swiftly to the good automatic transmission. in Greenlane as German giant’s admission of Tucson Divisional manager Simon Armstrong takes on cheating on US air pollution Hyundai New Zealand (HNZ) Rose says Sime Darby will be franchises tests. reckons the re-introduction looking to do the same with TradeMe creator and Volk- The future of Peugeot and of the Tuscon nameplate to other models in their range, swagen driver Sam Morgan Citroen in central Auckland has the New Zealand market will and leveraging off their Aus- took to Twitter to voice his been assured, with Armstrong further strengthen the brand’s tralian distributorship to allow distaste for the emissions Motor Group announcing they position as the leader in the indent on less-popular models. cheat. will keep the current Green- mid-size SUV market for pri- “My last two cars have been lane location open. vate buyers. BMW continues Volkswagen. And now I don’t The brands were expected HNZ general manager Andy trust them. Brand destruction,” racing deal to go, following Armstrong Sinclair says the company has Morgan tweeted this morning. BMW New Zealand has reaf- securing the land under the achieved the same amount of firmed its support of horse sales year to date, as for the currently Continental Car Court told of Fiat racing at the Auckland Racing Services run dealerships on same period in 2014, but with Club. Chrysler ‘kickbacks.’ 40% fewer sales going to the Great South Road for a new The new deal will see BMW Former Fiat Chrysler Australia daily rental fleets. Auckland City Toyota branch. become naming rights holder Armstrong chief executive, boss Clyde Campbell’s wife Turners seeks stake for the Group 1 New Zealand Rick Armstrong confirmed he Simone allegedly received se- Derby – to now be known as cret “kickbacks” from company in MTF will take over the brands, and the Group 1 BMW New Zea- they will share the site with deals. Turners, formerly finance and land Derby. Toyota. The alleged payments – insurance firm Dorchester, an- totalling over AU$620,000 – nounced plans to try and take stem from contracts and deals Continued on page 15

14 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz DIARYTALK

Continued from page 14 over the emission scandal that signed by Clyde Campbell and ANCAP appoints rocked the automotive giant. Veronica Johns, his successor September 25 In a statement, Martin Win- chief exec as managing director at Fiat ANCAP named James Good- terkorn said, “I am clearing 40,000+ emissions- Chrysler Australia. win as its new chief executive the way for a fresh start with A Federal Court hearing dodging VWs in officer. my resignation.” heard that Simone Campbell The appointment of the VW’s board is set to name a Australia: report had been paid the money as former Australian Automo- successor, with Porsche chief Volkswagen and Audi vehicles kickbacks from contracts with bile Association government executive Matthias Mueller caught up in the global emis- suppliers, the Sydney Morning relations and communications held out as the most likely by sions evasion scandal could Herald reported. director was made by the German media. number more than 40,000 in Australia. ANCAP board. Jim Bolger says Fairfax Media is reported that Goodwin also worked for September 22 the Federal Chamber of Au- government should it obtained confidential industry figures that show 42,918 Aus- tomotive Industries (FCAI) fol- BMW digs deep into be driving electric tralian vehicles have the 2-litre lowing a career in journalism. Waikato Former prime minister Jim turbo diesel engine that’s at the Hamilton’s Coombes Johnston Bolger said the government centre of the scandal. BMW is making big moves in should be leading the way on Fairfax said the number in- September 28 the Waikato European market. electric vehicles, and have cludes 21,208 VW Golfs, 13,910 The dealership is moving a them on its fleets. Passats, 4712 Jettas, 1934 Pas- First plug-in hybrid EV few hundred metres down Te Bolger, who lead the sat CCs and 1250 Audi A3s. for all of government national party through the Rapa Road – not the biggest catalogue distance, but a huge change 1990s, told Radio New Zea- Government would Mitsubishi says its Outlander for the company after 25 land the government needs to ‘mitigate impact’ on PHEV plug-in hybrid is the first years in the current location. be doing more. vehicle owners – and only one of its type listed As construction kicked “We have very clean elec- in the Government’s catalogue off, dealer principal Richard tricity, we import a few billion NZTA of vehicles approved for its Johnston said the move to a dollars worth of oil which is The New Zealand Trans- agencies’ consideration. brand-spanking, purpose-built not clean,” Bolger said. “I think port Agency says it is closely The five-year ‘All-of-Gov- premises will lift the compa- the government could give a monitoring the VW emis- ernment’ vehicle purchasing ny’s performance to “exciting lead in this space.” sions scandal situation – and contract was designed to new levels.” says the government could Motor industry assist affected buyers in New assist more than 250 govern- Transport boss wins slammed in Zealand. ment agencies make effective purchases. ITS award Commerce Leigh Mitchell, acting group manager, access and The chief executive of the Commission report use, said that until it is clear Ministry of Transport, Martin The car industry did not fare if the issue involves any New September 29 Matthews, won an recognition well in a report released by the Zealand supplied vehicles, it for his championing of intel- Commerce Commission. is a case of monitoring the Increased motor ligent transport. The Consumer Issues 2015 situation. vehicle cargo boosts Matthews was recognised report featured motor vehicle with the World Congress credit, sales and the vehicles MIA may back port profit on ITS Hall of Fame Lifetime Lyttelton Port of Christchurch themselves featuring heavily testing to reassure Achievement Award for his in areas that generated large (LPC) says volumes of general leadership in the transport numbers of complaints and consumers cargo such as motor vehicles technology sector. investigations. All new vehicle arrivals could and dry bulk freight exceeded The motor vehicle retail be subject to an emissions test expectations and helped its industry was the third-biggest – as a way of returning confi- $20.5 million profit for the September 24 generator of Fair Trading Act dence to buyers in the wake of financial year to June 31, 2015. complaints last year. the Volkswagen scandal. The previous year’s profit VW boss steps down The Motor Industry Asso- was $343 million, but this fig- over emissions cheat ciation – traditionally against ure included a large insurance payout relating to the 2010 The chief executive officer of in-service emissions testing – and 2011 Canterbury earth- Volkswagen stepped down told AutoTalk it is now willing to discuss the possibility. quakes.

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AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 15 INDUSTRYTALK Crawford’s Case brought to you by By David Crawford, CEO of the CRAWFORD’S CASE Motor Industry Association of NZ (Inc). By David Crawford, CEO of the Motor Industry Association of NZ (Inc). MARAC, a division of Heartland Bank Limited. Testing call ‘premature’

Emissions to homologate vehicles relates to emissions of harm- Rule. Until they do, industry We all know the story by for compliance to required ful substances, are emissions is potentially faced with a now, but do we really? We standards might benefit from of CO2 or fuel consumption. double jeopardy situation. know one manufacturer a review to see how we can The two are not related and We are damned if we put the decided to use cheat soft- bring some more rigour to should not be discussed in figures on the fuel consump- ware to alter emissions under validation of test versus real the same sentence. tion label and then consum- testing but after that there is life performance. The MIA, along with the ers complain, and we’re a scarcity of detailed facts. My view is in-service MTA and the IMVIA, has pre- damned if we don’t. In the absence of facts the emissions testing will not viously noted there are some media has run a riot in its improve the validation issues with fuel consumption Driving on New Zealand coverage of the story. process, is expensive and is figures. Distributors of new Roads The plot line is a gift from problematic for most of the and used imports are re- Now for something much heaven for media – big bad current old and ever ageing quired to use fuel consump- lighter. Along with my wife, corporates behaving badly New Zealand fleet. tion figures derived from an we recently enjoyed four and they are having a field Problematic in that you internationally agreed testing weeks travelling in Europe, day posing a lot of questions, can only test a vehicle to a protocol which is enshrined visiting four countries. One mostly implying the answers standard that the vehicle is in NZ law via the Fuel Con- of those countries was Turkey they want as opposed to us- built to, so if you have a lot sumption Information 2008 and we loved the culture, ing investigative journalism of vehicles built to Euro 1, 2 Rule. the people and the scenery. techniques to appropriately and 3 in your fleet, and we The issue is that the test- While there I hired a car for critique the issues. These do, then all you are doing is ing protocols were devel- several days and immediately issues need to be properly charging someone for the oped many years ago and upon doing so was forced to investigated and reported pleasure of testing their vehi- have not been updated to reappraise my view of New on. Made up stories are a cle to tell them it is a polluter. match current engine tech- Zealand’s driving habits. waste of everyone’s time. And no, you cannot retrofit a nologies. Put simply driving in Turkey Let’s be clear though, not vehicle to perform to a higher It’s always been the case in not for the faint hearted. one single distributor in New emission performance stand- that fuel consumption figures Lane markings appeared to Zealand would ever condone ard no matter how much derived from the protocol be mere vestiges of advisory such a course of action and purveyors of aftermarket test may or may not reflect suggestions and it was dif- we are all surprised and dis- products erroneously claim real world driving. However, ficult to tell what the actual appointed beyond measure you can! there is some evidence to speed limits were if going on with the actions of the manu- The Motor Industry As- suggest there is a growing the speed of other drivers, facturer. That is particularly sociation remains opposed to gap between test figures and speed signs were sparsely the case for its New Zealand the introduction of in-service real world driving with some sprinkled along the network. distributor. emissions testing at this point analysis suggesting on aver- I’m not bagging their driving, However, calls for in- in time. Does that mean we age this has grown to about far from it. It was an experi- service emissions testing would not discuss the matter 38%. ence I enjoyed, learning to by some as a way to catch if approached by officials to The MIA’s position is clear. do as ‘Romans do when in cheats and bring some integ- do so – no it doesn’t. The government’s internationally Rome’. rity to regulatory processes MIA is always open to discus- need to revise the current However, I’m now mindful is, I believe, premature. I sion. testing protocols sooner to criticise less the driving note that in-service emis- rather than later and then our habits of New Zealanders. As sions testing did not expose Fuel Consumption Government needs to give I found out, it’s actually not the cheat software. The Erroneously confused with effect to it under the Fuel that bad when viewed in a Type Approval Process used the VW emissions saga, which Consumption Information global context. Drive away with finance from MARAC Provided by Heartland Bank Limited marac.co.nz MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply. heartland.co.nz

16 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz INDUSTRYTALK

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VINSEN‘S VIEW & The monthly report from chief David Vinsen We don’t know how lucky we are

n 1975, John Clarke wrote tralia’s economy and com- businesses. The argument New Zealand. the satirical song “We petition law…in other words, goes like this: the govern- Australia is often called Idon’t know how lucky yet more talk about neces- ment uses taxpayer’s money ‘The Lucky Country’, but we are,” and performed it sary reforms that had been to provide incentives to the full description from as his character Fred Dagg. identified over the years, but selected businesses, who will the 1964 Donald Horne The song even featured on no government had had the then employ people, with book was originally meant the hit parade of the day. As nerve to implement. These the expectation that workers to be negative: “Australia is Clarke later described it, he rather dry presentations were are voters…and the politi- a lucky country run mainly was poking the piss at the interspersed with examples cal party in power that has by second-rate people who “blokishness” of Kiwis at the from business, but mainly at provided the protection or share its luck.” time, who did not appreci- a corporate level. I resolved subsidies wants the votes. By But unlike New Zea- ate the benefits of living in to try to give a dose of reality any definition, bribery and land, where we’ve already New Zealand. And this was by using specific case studies corruption. gone through the pain of 10 years before the structural of real world issues. My comments were delib- fundamental restructur- economic reforms imple- In my first session, my erately strong and provoca- ing to ensure a competitive mented by the fourth Labour fellow panellists were rep- tive, but well-received, and I economy, the Aussies have government of David Lange resenting the new vehicle was particularly encouraged relied on the commodities and Roger Douglas. industry, and we heard the when the chairman of the boom to mask the fact that Fred Dagg’s song could same tired old arguments Australian Productivity Com- they have a grossly inefficient equally apply now. When- that we heard in New Zea- mission, who had spoken and uncompetitive econo- ever I travel, I always have a land almost 30 years ago: before me, endorsed my my; their state and federal heightened sense of ap- “The public doesn’t want or comments, and later asked governments are running preciation of New Zealand need more choice, the im- for contact details. deficits, and their businesses on my return home…in fact, ports are inferior, we won’t There is a definite sense cannot compete in the new that feeling starts as soon as I be able to service them or of frustration among politi- global markets. Warren Buf- board an Air NZ flight for the supply parts for them,” etc. cal observers and analysts fet observed that “when the homeward journey. In this In other words, we don’t about the obvious need for tide goes out, everyone can case, though, my comments want competition. It was structural economic reform, see who’s swimming naked” about not knowing how like déjà vu, all over again. and the lack of political will - and that’s the situation with lucky we are come after a The audience seemed to to implement it. Successive Australia: the tide has gone recent visit to Sydney, where appreciate the irony of their Australian governments of out, and they’ve been found I was a panellist at a two-day position, and my comments all political stripes have to to have left their bathers on forum on Australia’s com- about competition were well take the blame. Maybe, they the beach. petition policy. I had been received. I was pretty blunt, now have to take action. In An obvious example invited so that I could give and talked about their import my opinion, they don’t have is their import protection a New Zealand perspective, restrictions and manufactur- much choice. policies, where multinational particularly with regard to ing subsidies being “structur- The massive revenues motor companies continue the motor industry. al corruption at the highest from the long-running boom to be protected against par- The people attending the level…political”. in hard commodities (iron allel imports. These vehicle forum were a mix of legisla- I genuinely believe that it ore and coal, in particular) manufacturers have all an- tors, academics, and lawyers. is tantamount to straight-out have given the Aussies a false nounced that they intend to The presentations were bribery when governments sense of security, much as cease their manufacturing mainly academic discussions subsidise or protect inef- the boom in the “white gold” operation in Australia, despite of previous reports on Aus- ficient and uncompetitive of dairy exports has done for Continued on page 26

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AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 17 MARKETINGTALK

Lead management vs lead reporting

t AutoPlay we live in the pre-sale lead man- Matt Darby works for AutoPlay which ship and there is little point Aagement space and specialises in ‘lead management tools’. wasting further resources are continually discussing To find out more contact: following them up. approaches and processes [email protected] or call 09 361 1505. More common is that and the behaviours that the customer does nothing result from them. with the email – they read One thing that often sales – either by increasing of these leads are closed the preview in their inbox gets lost in the discussion closing rates through better as lost. This is a big issue and then delete it. These is the distinction between communication, or freeing as it represents 80% of all customers have not given lead management and lead up time to handle more leads the leads received by the either a positive or negative reporting. by becoming more efficient. dealership. Dealerships need indication of interest, so are For many who have yet to Lead reporting is worth re-targeting at a fu- truly embrace a lead man- tracking behaviour ture date (in moderation). agement philosophy, lead and activity in order to The final group of po- reporting and management measure performance, tential customers is those are one in the same. For and using that infor- that open and view email these dealerships, a big part mation to make better communication. Depend- of the driver is to respond to decisions. Useful, but ing on your database size, pressure from manufacturers lead management is this could be hundreds or to do better with the leads the process of actually just a handful. Given a lot of provided to them. The same working leads to im- people may open an email applies within a dealership, as prove performance. So how to ensure that they let the out of curiosity, it’s better many sales managers toler- does it actually work? process decide when leads to focus on the top 25% of ate lead management as it’s As with most sales activity, are closed as lost – not the recipients who opened and what the DP wants, without it starts with marketing. This salesperson. viewed. Take these 25% and truly seeing the benefit. could be listing cars online, A good way to achieve divvy them out to the sales For these dealerships and/ signage at the dealership, or this is to send a follow up team to make a few calls or or sales managers, the focus radio ads. Marketing activity eDM - at AutoPlay we send personalised emails. These of lead management be- results in leads, and Auto- our retail-focussed ‘live prospect customers then comes lead reporting. Their Play’s captured data indicates leads’ email. This type of become leads and the lead goal is to be able to com- approximately 40% of these email gives dealerships a management process starts municate the best lead stats leads will be converted to a second bite of the cherry. all over again – minus any possible – a great driver for test drive. They are able to “test the wa- additional marketing costs. the sales team to continu- Of those that test drive, ters” to see whether potential Lead management is ally be improving against key roughly 50% end up as a sale customers are still active in more than just tracking and KPI’s. (approximately 20% conver- the market. reporting on leads. In its However, what some- sion of all leads). These con- There are potentially three simplest form it’s the process times gets lost is that report- version figures are improved results from sending a follow of following up leads until ing is not the end goal. It by better follow-up and up communication. Firstly, you have squeezed out every may sound obvious, but the better communication – this the recipient might opt-out possible test drive or sale. underlying reason for adopt- is lead management. of future communication. Done right, it will help you ing a lead management phi- What happens next in alot This group represents the sell more cars – with little or losophy or tool, is to improve of dealerships is that most true lost leads for the dealer- no additional expense.

18 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz MARKETINGTALK

Mobile driving sales revolution

o doubt many of you have changes in Google’s mobile algorithm, watched with more than a Peter Aitken when coupled with the changing shop- Npassing interest the seeming [email protected] ping habits of car buyers, could lead to endless roll out of new mobile product or 021-940 318 dealerships losing a significant piece by technology industry giants like Apple of the e-commerce pie, if they do not and Samsung. make mobile-optimised marketing ef- As a consequence of this mobile attention (with Gen Z probably the ex- forts a priority. revolution, consumers have embarked ception) in order to sell more vehicles’? Today, a dealership cannot rely on on their own digital device migration In an attempt to provide an answer updating its digital presence to a mo- from desktops, to laptops, then to to this question, I wish to revisit the bile-friendly website that uses respon- notebooks and tablets and finally to July article this year, where I shared sive design to shrink the dealer’s main sophisticated smart digital phones. findings from a white paper enti- site, to work on mobile devices. Impor- Early smartphones were seen as tled: ‘How Mobile is Changing Digital tantly if the search advertising is only supplementary devices to traditional Advertising’ - from by Naked Lime. optimised for desktops and laptops, it is hardware internet access. Today, they In April this year, Google significantly of little use on a mobile device. are so technologically-advanced they changed its mobile search algorithm. Those dealerships that have taken are capable of achieving tasks akin to The potentially wide-sweeping effects the effort to optimise the search ca- any competent laptop, the key differ- of that change earned it the nickname pabilities for mobile, can then provide ence is they are smaller, fit comfort- ‘mobilegeddon’. consumers with what they are look- ably in the hand and importantly they Now, when consumers perform a ing for- namely the dealership map, are very mobile. Google search on mobile devices, they clickable contact phone numbers, as Nothing earth-shattering in the see websites that meet Google’s criteria well as simple inventory listings. Ad- above smartphone technology advanc- for being ‘mobile-friendly’ before they ditionally, a dealership may decide to es, other than to reflect on the pace see websites that aren’t. develop specific call to action options of change for both the products and such as: the exponential consumer acquisition According to Google, the algorithm • Call-only campaigns, to enable of the devices – and their boundless change reflects changes in how consumers who see the advertise- application. My fifteen years spent as consumers use their mobile devices ment to call the dealership directly an observer of retail automotive digital for online activities: from their smartphone marketing has demonstrated without • Today, 8 out of 10 adults own a • Text advertisements that allow doubt that the only constant within this smartphone, and 3 out of 4 smart- the dealership to display a phone field is continuous change. phone owners use mobile devices number and other relevant dealer- In that time there has been a to access the internet. ship contact information within fascinating migration of consumer • Nearly 80% of smartphone owners the advertisement, to enable the knowledge and application of mobile use their devices to shop and 82% consumer to tap on their touch technology within the respective ranks of mobile shoppers rely on search screens. of Baby Boomers, Gen X, Millennial results to help determine whom • The dealership must, of course, or Gen Y and the latest group of Gen they will shop from. ensure staff are equipped to handle Z representing the early/mid teenage • By 2018, mobile shopping is es- those calls, and turn potential cus- age grouping. When one looks at each timated is estimated to generate tomers into service appointments of these groups and their respective more than $US600 billion - rough- and test-drives. adoption of advanced mobile tech- ly the total size of the e-commerce Change can be scary, however, it nology, a key question for any dealer market in 2013. is capable of providing a scintillating becomes: ‘How can I capture their The paper outlined how these journey of discovery.

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 19 F&ITALK Proudly brought to you by the market leaders Motivating with money

mployee motivation comes in many forms, Eand depending on the calibre of the staff member concerned, it all comes down to what spins their wheels. Sometimes, it is the little recognitions that mean a lot to people. However, when it comes to key personnel such as business managers, almost without exception they are motivated by the dollar. And as business owners and dealer principals, I am staggered by The quickest way to de- Franchise July August September motivate a high achiever is Finance 42% 36% 40% to constantly move the goal By Tony Neems MBI 40% 34% 39% National sales posts, or tinker with their PPI 10% 7% 10% manager of Autosure commissions on a regular basis. GAP 21% 16% 20% Here is something for you MVI 13% 11% 13% the number of you that fail to recog- as employers to ponder: most Used/ Import July August September nise the influence these people have employees in this industry MBI 40% 38% 40% on your bottom line (both positive and work off relatively low base PPI 48% 42% 47% negative). salaries. These salaries are GAP 15% 15% 14% Over the years, our business has predominantly designed to MVI 28% 12% 27% seen a massive amount of talent drift pay the day-to-day living 11% 11% 18% off into other industries. We are no expenses. The cream comes Profit per longer the glamour industry we once in the form of commission July August September unit sold were, and with the expectation from which is paid on the sale of Franchise $999.00 $903.00 $991.00 the public that we open all hours, try- products. Used/Import $1,016.00 $986.00 $1,021.00 ing to find a work/life balance in our A good business manager industry is difficult. will work with the client to not If we as an industry want to attract Combine that with the fact that the only supply finance from agreed sourc- the right talent back to our industry average salesperson/business manager es - on which the business gets a com- – and we really need to be doing this will struggle to break $100k per year, it’s mission - but also add to the finance – then it is clear we need to pay the no wonder we are in the talent predica- contracts those insurance products that money. ment we are currently in. protect the client against unforeseen Many of you concentrate too much I get the fact that margins aren’t what occurrences, all of which have attracted on what is being paid to these people they used to be, and many businesses an earn for the business. and not on what has been generated. operate with huge overheads. Howev- How good your business manager is Take a minute to view the bigger picture er, when you have recognised potential will influence how much commission here. A good business manager has and talent, or you have switched-on he or she will earn for the business. just as big a view on the business as the business managers who have the ability Given that you are only paying once dealer principal. They have the ability to to consistently influence the outcome an income has been earned, why do influence vehicle sales, F&I sales, parts of a sale in a positive way, these people many then want to continually move sales, workshop sales and ultimately - in should be applauded for their value to the goal posts to avoid having to sup- conjunction with a good CRM system the business, when too many seem to posedly pay them too much? Who says - have the ability to influence customer be stymied by ever-changing remu- what is ‘too much’ when you’re paying retention. What is this worth to your neration structures. only on results? business?

20 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz

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MOTOR VEHICLE INSURANCE

“Providing confidence for the road ahead for over 25 years.” www.autosure.co.nz l 0800 267 873 F&ITALK

Staying on the path of continual improvement

ver the last 25 years I’ve had the to measure and monitor performance. The challenge with F&I products is absolute pleasure of training It’s like the All Blacks, possibly the that you’re mostly selling intangible Oand working alongside some of greatest rugby team in the world, and items (finance paper, and insurance the best business managers in the coun- their approach to their business. Sure promises on paper). try, together with a mix of new entrants there’s a lot more science in the game I’ve found it’s far better to build rap- to the industry, and others just wanting than there was a few years ago but the port before trying to sell them anything extra training and support. majority of their training is still spent by asking open-ended questions, finding It’s something I working on the basics of some common ground that they will re- do because I love it, catching, passing, kicking, late to, listening attentively and showing I have a passion for By Steve Owens running with the ball and genuine interest by following through it and it gives me a of Provident pretty much perfecting the with more comment on that subject. It sense of purpose, Insurance skills they’ve been learning shows you have listened to them and working in part- since their school days. you care about them. nership, helping F&I is no different – it’s Once you have built a level of rap- dealerships build more competence and all about applying the basics well, and not port a great little opening question is:- profitability in this valuable area of your giving up - even in the face of defeat we “Where are you driving your new vehicle business. still try to get something out of every deal. this weekend?”. This does two things: Since founding Provident Insurance In this article I want to talk about just • Firstly it helps you learn something we’ve been running our two-day F&I two of the basics that begin right at the about them. It’s important to follow seminars every two months in Auckland, start of the F&I sale: this through with more questions Christchurch and as far afield as Inver- Preparation – It’s not about being to find out why they’re going there, cargill, together with various in-house the smartest person, the best looking who they’re going to see, the things workshops held in dealerships on a or most charismatic, but to be the “best they’re going to do there, … so you regular basis. prepared”. This starts with you, your of- can find that common ground. (Us- But to be the best you’ve got to fice, and your knowledge of the cus- ing this approach you’ll be surprised do more than just attend a couple of tomer and the vehicle they are purchas- at how easy it is to build rapport courses because the F&I industry is ing (generally from the alesperson and with people). changing, the way people are thinking write-up sheet prior to turnover). • Secondly, it reinforces ownership about finance is changing, the mar- Build rapport. People buy off people (“where are you taking your new ket is becoming more regulated, your they trust, so spend time learning as car”). customers are better informed, and much as you can about them and their The basics of pre-deal preparation competition is more aggressive. circumstances. and listening can help “set the scene” for And it’s no wonder, automotive Listen attentively/show interest – a great F&I sale, and potentially a long- F&I can be a great profit centre for a Most people in the motor industry are term customer. dealership, so I’m a strong advocate of hired because they know how to sell and Stay on the path of continual im- continually practicing the basics with have demonstrated the skills to talk to provement – it’s a long and rewarding training, support, and disciplined systems customers. road ahead.

Better value insurance protection.

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22 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz EMPLOYMENTTALK

Russell Phillips is New Zealand’s Talent Wars most experienced automotive recruiter, and has operated a specialist recruitment company since 1991. He reports for n just three months it will declining in the years 2012, AutoTalk on the employment be Christmas, and right 2013 and 2014 do the com- market monthly. now, just as it is every bination of lower training I www.automotiveemployment.co.nz year, we experience the peak numbers and steady work period of recruitment activity. permits perhaps tell the story 2015 has brought about of what is to come? an ever increasing challenge to secure. the essential skills lists, the to secure skills. In some Motor Mechanic (321211) Opening the doors to Ministry of Business Innova- areas of New Zealand the INZ statistics offshore talent right now and tion and Employment last competition to secure these The numbers of people employing and training new month supplied figures from skills has moved to recruiting approved for a work visa and fresh talent from other the Ministry of Education. conditions that are perhaps under the Essential Skills sectors has never been more The Education Counts sta- more accurately described as Category have been - important. This is particu- tistics show massive differ- a talent war. These figures exclude larly true for non-franchise ences between the number It seems that just about duplicates where a person operators for it can be more of graduates at level 3 and every main centre of New has obtained more than one difficult to attract skills ahead level 4. For Automotive Zealand has a story to tell work visa for that occupation of the new vehicle operators Employment NZ this brings about new or rebuilt dealer- in a given year. who have enhanced access about the question of why ships opening in the light Dealership expansions to training. so many graduates are not vehicle sector, particularly and new standalone sites When discussing a need fulling completing their level so in our largest city Auck- have to be staffed and these to reinstate technicians in 4 qualifications. land. A new dealership for Sep2010_ Sep2011_ Sep2012_ Sep2013_ Sep2014_ Greenlane and another two Occupation rebuilds/renovations in the Aug2011 Aug2012 Aug2013 Aug2014 Aug2015 Motor Mechanic same location are occurring 222 191 160 195 199 simultaneously. Not to be (General) (321211) left out West Auckland also has some new Dealership re- skills need to come from builds/expansions underway. somewhere. So too has Auckland Airport A specialist motor industry with yet another Dealer- recruitment company like Anywhere. Anytime. ship being constructed. The Automotive Employment North Shore is also active NZ has to embrace varied Your most important dealership information with a complete new rebuild techniques to fill these gaps accessible from any desktop, tablet or mobile and the challenges of doing opening in the Wairau road device. Faster. Easier. Smarter. area. Around the coun- so are significant. We are try construction activity is proud of our ongoing activity occurring at a rate never to encourage the training of witnessed by us previously. fresh and new hires and we The skills shortage for regularly get asked why we technicians is arguably at an go to such lengths to attract all-time high, it has also be- new talent outside the exist- come increasingly difficult ing pool of talent. Many to secure service advisors, assume talent shortages are and good vehicle sales staff good for a company like and skilled parts personnel ours. The truth is short- are few and far between. ages create difficulties in Immigration NZ statistics the recruitment process and show us the number of work reduce the number of place- visas approved each year for ments, not increase them. It automotive technicians has is exactly the talent shortag- remained relatively steady. es that we are experiencing Steady is probably not the right now that are the most word industry needs to hear. concerning, particularly so 0800 623 687 With graduate numbers in when it seems the skills are www.motorcentral.co.nz the light automotive sector set to become even harder

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 23 TRADE DIRECTORY

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24 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz The comprehensive guide to every service a dealer could use

IT SERVICES TRANSITIONAL for WoF / CoF, Inspections, FACILITIES Certifications and much AUTOPLAY.CO.NZ more. 09 361 1505 AUCKLAND TRANSITIONAL [email protected] FACILITY VTNZ Autoplay use the latest 0800 88 88 69 technology to deliver a suite VEHICLE BROKERING [email protected] of smart digital tools to our customers. SBL INTERNATIONAL MTA is NZ’s largest VEHICLE STORAGE VEHICLE BROKERING dealer representative 03 377 6578 ANNGOW MARKETING www.sbltd.co.nz AVS VEHICLE STORAGE group: Franchise 027 207 9032 “NZ owned and operated dealers, used dealers, www.anngowmarketing.co.nz SOLUTIONS SBL continue to set the Independent digital marketing and motorcycle dealers. motor industry benchmark VEHICLE services & advice to the for importing vehicles” automotive industry, over 14 TRANSPORT years’ experience, contact VEHICLE 0800 001 144 | www.mta.org.nz Joel today! PTS LOGISTICS LIMITED INSPECTION AUTO LOGISTICS LIMITED PENTANA SOLUTIONS VINZ LIMITED Vehicle Inspection NZ TRANSPORT LOGISTICS 0800 GO VINZ LIMITED MOTORCENTRAL (0800 468 469) [email protected] VTS AUCKLAND METRO PARTS New Zealand’s best choice CAR DELIVERIES

REPCO 0800 800 878 www.repco.co.nz Repco - over 800 highly Methodology trained staff, 82 stores nationwide and home to New Zealand’s leading automotive brands. key to success PAINT & FABRIC SUPPLIERES in sales GARDX 0800 242 739 aving methodology, skill www.gardx.co.nz set and process, behind New Zealand Premier Paint & Fabric Supplier. Providing Hyour sales team is all it CAR & SUV profit solutions that achieves takes to boost sales according results. to sales coach Andrew Mearns. Car & SUV is NZ’s first and only dedicated Queensland-based Mearns, SHIPPING AND professional vehicle who has been training staff at a LOGISTICS Andrew Mearns news and reviews number of Kiwi dealers, began website. ARMACUP MARITIME his career in the automotive market, and since then SERVICES LIMITED has accumulated 30 years of direct sales experience, www.carandsuv.co.nz including selling Ferraris, and as national training AUTOHUB manager ( sales manager) for multinational giant 09 411 7425 Tyco. TALK TO [email protected] Mearns says boosting sales often goes back to The easiest way to DALE STEVENSON ship your cars and some fundamental issues: having a sales route and other vehicles globally. process, down to the basics. ABOUT ADVERTISING An example, he says, is he is often surprised at YOUR BUSINESS IN how many dealerships don’t have a planned road

test route. DOLPHIN SHIPPING “This means both the salesperson and customer AGENCIES can relax, and don’t have to think about where they OUR NEW TRADE are going,” he says. “Ideally it avoids right turns and JACANNA CUSTOMS AND there is a nice park where you can stop and discuss DIRECTORY FREIGHT the car.” The salesperson should always drive first, allow- MCCULLOUGH SHIPPING Phone: +64 9 309 2444 LIMITED ing the customer to relax. Having a planned route also allows control of how long you have with the Mobile: +64 21 446 214 MOANA BLUE customer. Email: [email protected] Continued on page 27

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 25 NEWSTALK

We don’t know how lucky we are

Continued from page 17 anything about it yet, they know they there’s hope for them yet. the huge subsidies they receive. There need to. Australia’s latest prime minister, And what happens in Australia is is now absolutely no reason for them Malcolm Turnbull, said as much in his important to us, too. Apart from any to continue to be protected. And as we acceptance speech. He talked about feelings of trans-Tasman sympathy, found in New Zealand, more jobs will the basic principles of the individual, Australia is still New Zealand’s most be created through the development of freedom and the market, and he then important trading partner, and if their a used vehicle import industry than was spoke of the need for Australia to economy continues to perform poorly, ever the case with manufacturing. reform in order to be able to compete it will inevitably affect us. Even though they haven’t done in the new global economy. So maybe Let’s hope that the people now running ‘The Lucky Country’ are not second-rate, and that they have the political will to do what’s necessary to make their country economically competitive again.

Aussie vehicle affordability ‘at all-time high’ ustralian vehicle sales have continued their up- Award trend, with growth up 6.8% compared to the same Morning Midas Morning Port Calls Tokyo Car V 4 Tokyo Car V 5 V 6 Miracle V 21 time last year. Australians purchased Osaka 16 October 3 November 15 November 2 December 101,392 vehicles last month, Nagoya 17 October 4 November 16 November 3 December with the year-to-date total at 862,832. Yokohama 18 October 5 November 17 November 4 December Sales were on the up for Auckland 5 November 21 November 6 December 20 December ACT, NSW, Queensland, Tas- Wellington 8 November 26 November 10 December 27 December mania and Victoria, while NT, SA and WA recorded drops of Lyttelton 7 November 25 November 9 December 23 December 13.2%, 3.9% and 8.8% respectively. PORT TO DOOR SERVICE INCLUDING: While NSW chalked up the best growth figure, with an  MPI Border inspection  NZ Customs clearance 11.8% rise (3595), Queensland was up 7.9% and Victoria hot on  Odometer certification  Delivery Nationwide its heels with growth of 7.8%.  Digital Photography for  Insurance FCAI chief executive Tony Weber commented that the prior sales in NZ figures suggest that vehicle affordability is at an all-time high. Toyota topped the market, with its Camry the outright www.armacup.com model victor for the month. Toyota’s share of the market was 16.4%, Mazda followed at 10.7%, Hyundai and Holden next with 9.2% each and Mit- subishi with 6.8%.

26 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz NEWSTALK

Methodology key to success in sales

Continued from page 25 tivate and manage perfor- appear confident in the eyes need to create a sense of More on Mearns’ courses mance. of the customer trust will be urgency from the minute can be found at www.an- Every sale has five eroded very quickly you first meet the client. drewmearns.com.au. common basic obstacles, 2: No Need: If we ask Without urgency desire loses Mearns has written more however, the fantastic news clients the correct questions its value. on sales obstacles, and how is if a sales professional has we will uncover what their 5: No money: Who has they can be overcome for the correct process, collat- real needs are, then per- never gone and purchased AutoTalk readers: eral and necessary skill set sonalise our presentation to a product or service when combined with mind mas- satisfy those needs. they know that money Five sales obstacles that tery knowledge these can be 3: No Desire: We have to should have been allocated can be overcome easily overcome. get the client to desire our elsewhere? When a client The motor industry is a 1: No trust: Any client product/services, not just be says they have no money, lot more competitive with has to feel they can trust interested in them. This will what they are saying you the advent of more people the sales consultant and the only happen when you have didn’t do a good job in the doing their research on- company. If a client is to got to a point where they above four areas. When a line. It’s no longer a num- trust you, they must first like can’t see themselves living client can’t see themselves bers game you need pin you and this is quite easily without it. You will need to living without your product, point precision and a high done by building rapport. build enormous value into they will find the money. performance team to max- You also need to be knowl- your product, personalise You aren’t competing with imise every opportunity. edgeable on your products/ it for their needs, create a the dealership down the Don’t practice on your services, do what you say sense of urgency and paint street or with their pricing, customers, practice in a safe you are going to do, be them in the picture. your only competing with coaching environment, hone sincere and have the ap- 4: No Hurry: We have to the sales person your pros- your sales people’s skills and pearance of a professional. instill a sense of urgency in pect will talk to at the deal- learn how to coach, mo- If a sales person doesn’t the client to act now. You ership down the street!

General Sales Manager - New Vehicles Southern Motor Group - Dunedin Founded in 1973 by Ken Cummings, the Southern Motor Group has grown to include 12 vehicle brands across five dealerships throughout the South A full job description is available upon request. Island, with sites in Invercargill, Queenstown and Dunedin. Forty years on the 120 strong team pride themselves on providing a service and purchase The skills and attributes sought experience that is second to none. This is a senior sales management role that will require the skills of an experienced new vehicle sales manager. You will have previously worked in a new At the flagship Andersons Bay Rd site in Dunedin where this role is based the vehicle franchise sales environment and have prior evidence of successful company represents six brands; Audi, Volkswagen, Skoda, Peugeot, Nissan sales leadership. Your ability to achieve high standards of employee engage- and Subaru. ment and your own personal professionalism should be self-apparent. Applications locally, nationally and internationally are all to of consideration. The role: The General Sales Manager has responsibility for the sales activities of six The Challenge and Reward brands. Principally you will be tasked with accomplishing the following: The combination of superior financial reward is complimented by the benefits • Achievement of Gross Profit results in line with monthly and annual of joining a large multisite group and the obvious potential this presents. budgets This is a role where success and your contribution towards it are recognised. • Maximise sales of new vehicle product Mandatory enquiry is recommended to those possessing the skills outlined. • Ensuring Manufacturer/Distributor volume targets are achieved Application process and closing date Other duties include but are not limited to the following: If applying online please click the apply section of this ad and submit your • Active involvement in the sales process contributing to positive sales resume for consideration. All applications unless otherwise requested are to outcomes and double closing where required be forwarded to Southern Motor Group. • In the absence of Brand Managers actively take up vacant roles and If reading this ad in printed media please visit www.automotiveemployment. personally sell new vehicles as and when required co.nz Using the quick search function type in the words General Sales Manag- • Within agreed budgets create inspiring and professional new vehicle er then upload your resume. advertising which results in consistent incoming enquiry Applicants are encouraged to request a detailed job description by calling • Manage new vehicle stock inventory in conjunction with Dealer Princi- Russell Phillips or Ken King Freephone landline or mobile on 0800 67 57 47. pal to ensure model mix Alternatively email [email protected] or ken@automo- • Considerable emphasis should be given to the ongoing changes and tiveemployment.co.nz opportunities presented by digital marketing opportunities Closing date: 26-10-2015 • Create superior relationships with National Distributor employees • Identifying the core motivators of your sales staff, implementing initiatives and raising sales performance.

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 27 NEWSTALK

Mixed bag in NZ Car of the Year top ten

his year’s New Zealand Car of the Year Award finalists has seen a mixture of vehicles in the top ten rather Tthan the last year’s SUV domination. The New Zealand Motoring Writers’ Guild (NZMWG) and The New Zealand Automobile Association will announce the winner of the 2015 New Zealand Car of the Year at the Viaduct Events Centre in Auckland on December 9. Members of the guild and the AA who have driven the top 10 cars will independently rank each of them on elements including value, design and quality. 2015 Audi Q7 2015 BMW i3 The best will become the 2015 New Zealand The top 10 finalists Car of the Year. for the New Zealand For the first time, the public will have a say Car of the with the New Zealand Year are: Car of the Year Peoples’ • Audi Q7 Choice award. • BMW i3 Sports Utility Vehi- • Ford Mondeo cles (SUV) still feature 2015 Ford Mondeo Titanium 2015 Hyundai Tucson • Hyundai Tucson strongly among the finalists with the Volvo • Land Rover XC90, Audi Q7, Land Discovery Sport Rover Discovery Sport, • Mazda2 Hyundai Tucson and • Mazda CX-3 Mazda’s CX3 – reflect- • Mazda MX-5 ing market growth. • Subaru Legacy/ “The real standout Outback with all of these vehi- 2015 Land Rover Discovery Sport 2015-Mazda2-Limited cles is the quality they • Volvo XC90 bring to the market, right across the range,” says AA Motoring Services general manager Stella Stocks. “Consumers are becoming very spoiled for choice with new cars, regardless of their price point.” One brand is a real contender for the top award with three models in the lineup with the Mazda2, Mazda CX3 and Mazda MX5 all vying for accolades against the other seven. “That one brand is so strongly represented in the top 2015 Mazda CX3 2015 Mazda MX-5 10 shows it is targeting a range of markets very well,” says Stocks. The BMW i3 electric vehicle was described by the top 10 selection panel as a clean sheet design that will become a real game changer. Stocks says people should expect to see more of this type of vehicle in future awards. The Ford Mondeo and Subaru Legacy/Outback come from the same category, but each takes a different approach in the medium/large car segment. 2015 Subaru Legacy 3.6L 2015 Volvo XC90 Last year’s New Zealand Car of the Year was Mazda3.

28 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz FOCUS ON

FEATURE FINANCE OCTOBER 2015 Finance facing changes and challenges

015 will be remembered as a year Moreover, finance rates have come finance customers. Banks are directly of significant change in vehicle under increased scrutiny, a product of targeting car buyers, debt-consolidation 2financing in New Zealand. New expectations set by record low mort- players increased market presence and legislation, new technology, and histori- gage rates combined with the ease peer to peer lenders launched in New cally and mortgage rates driven com- to compare. Our focus has been on Zealand. These competitors all market petition and shifted customer expecta- facilitating the changes required while heavily online, taking advantage of the tions of car finance. still providing a seamless service to the research customers do before they step The transparency bought about by UDC dealer network. We’ve worked on to a car yard. the Consumer Law reform has changed collaboratively with our dealers, with how we interact with our customers. a particular focus on the changes to In the face of such challenges we The accountability of both dealerships marketing required under the new leg- believe future finance growth for and finance companies is very clearly islation given the expected regulatory dealers will be underpinned by: spelt out in the legislation, and this has scrutiny. • Playing to your strengths. Dealers required a more collaborative approach We have also seen increasing chal- have an enormous advantage over in financing car buyers. lenges from outsiders targeting dealer Continued on page 30

Market leading ﬁnance products deserve market leading protection Autosure NZ has been working alongside finance companies, providing full asset protection to the motoring public ✔ Market-leading insurance product suite ✔ Market-leading finance and insurance sales training ✔ Long standing history and financial strength

To find out how you can add real value and protection to your finance book, talk to your local Autosure representative today. “Providing confidence for the road ahead for over 25 years.” www.autosure.co.nz l 0800 267 873

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 29 FOCUS ON FINANCE

Finance facing changes and challenges

Continued from page 29 The purchasing habits of custom- increasingly important; not only as a new competitors in seeing customers continue to evolve, with decisions standalone profit centre, but as a way ers face to face and knowing the made about vehicle purchases (includ- to ensure overall margin is achieved in vehicle. This makes compliance ing how they will pay) often made selling vehicles. It has never been more easier, turnaround faster and gives before they even step onto a yard. We important for dealerships to take a ho- you the best opportunity to under- often facilitate customers at UDC prior listic view of a vehicle sale and establish stand your customers’ needs and to a purchasing decision being made where money is to be made with each structure a deal accordingly. – we look to direct them to our dealer customer interaction. • Smart ways of marketing and trans- network to make those purchases, and Previously, to be engaged in the NZ acting with customers. Through we continue to invest heavily into tech- vehicle finance market, finance pro- our use of scorecard technology nology that captures the customer at viders only had to have a decent risk and ongoing investment in our the earliest possible stage and facilitate appetite and a system that allowed their UDCLive platform we continue a dealer introduction. dealer network to transact with their enhance the customer experience Customers still want the confidence customers. Today, you need to be an by focusing in transaction speed of dealing with solid and dependable active partner – having market leading and ease. We’ve also invested companies like UDC, but want the abil- technology, the best people support- significantly in remarketing and ity to do so from the comfort of their ing, and proactively looking for ways to dealer POS collateral to provide a own home at a time that suits. drive customers to the dealership (all consistent, credible experience for Vehicle margins continue to be within the current legislative framework) customers. A lot of our remarket- squeezed in an increasingly com- are critical to that in 2016 and beyond. ing is now digital, driving customers petitive market. Given this, the finance And that where our focus will remain in directly back to your web-site. office of the dealership is becoming the year ahead. BATTLE ON FOR MTF STAKE

urners, formerly fi- and director Paul Byrnes can be limited.” are any circumstances nance and insurance says Turners Finance cur- Byrnes is adamant the in which Turners holding Tfirm Dorchester, has rently write around 10% of offer is not a takeover. more than 10% would be announced plans to try and new loans through MTF “We will not, in any cir- beneficial to the company take a 20% stake in Motor – with the number increas- cumstances, hold 20% and its shareholders,” Trade Finance. ing. or more of the ordi- he explains. The move has lead to “We are making this offer nary shares in MTF as “A major consider- Marac-finance parent to enable us to increase a result of this offer,” ation in this assess- reiterating its interest in our shareholding to better he says. “We are quite ment is that a stake the firm - a takeover which reflect our commitment relaxed about the of up to 20% would the MTF board strongly to the MTF model,” Byrnes final shareholding we materially limit the resisted. says. “We expect our book finish up with and ability of any other Turners claim their plan to continue to grow. we are not able to Paul Byrnes party to make an is not a takeover, but will “We would also like to withdraw, nor will offer for MTF. need MTF’s board and think our expertise in the we increase the price of “This may have value shareholders – many of wider financial services and this offer once it has been consequences for all MTF whom are dealers – to insurance industries could made.” stakeholders.” cross a current 10% limit bring value to the business In a statement, MTF In a statement to the on any one shareholder. for the benefit of all share- chairman Stephen Higgs market, Heartland con- Turners is making a holders,” he explains. suggests shareholders firmed that it continues to cash offer of $1.15 a share, “We therefore feel a consider the offer and have an interest in acquir- higher than the 94c the more meaningful share- seek advice. ing MTF if the shareholders, share most recently traded holding up to 20% is ap- Higgs notes the move franchisees and dealers of at. The offer will be sent to propriate and at the same past 10%. Will require the MTF were receptive to a all MTF shareholders this time we believe our offer approval of 75% of share- proposal; and if the existing Thursday, and will remain provides an attractive op- holders. issues between MTF and open until October 17 – a portunity for MTF share- “The Board, which must the Commerce Commis- month. holders who wish to sell act in the best interest of sion as to loan fees in the It already owns 0.95%. their ordinary shares, given the company, continues Sportzone case were better Turners chief executive liquidity for those shares to consider whether there understood.

30 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz FOCUS ON FINANCE

Steve Owens, Jacques Gray and The importance Brett Kilburn drive profits forward. of F&I – and it’s not just for the big boys

elling finance and insurance products to support sales of motor vehicles could represent the highest profit Scentre in your dealership today, and … to many, it does. F&I has often been referred to as the 5th profit centre, sit- ting in behind new and used vehicles, and parts and service “provident deliver in a franchise dealership, and the 2nd profit centre in on promises, a used car dealership. By Steve Owens There is no doubt that of Provident without the sales depart- they tripled Insurance ment the F&I department couldn’t exist. How- our F&I profits.” ever, a dealership with a strong focus on selling finance and insurance products “After 30 years in the business, we’ve knows the F&I dept is the most profitable profit centre within the dealership, because:- seen and heard it all before. • It has very little overhead (apart from an office, com- So many companies want your business and they puter and performance-based remuneration plan for promise the earth, but once you’ve signed up, they the business manager) just don’t come through. • There is no capital outlay or investment required in stock – you’re only selling paper so don’t have to pur- Add to this, I hate change. So when we made the chase the products before you sell them. change to Provident Insurance I expected very little. • The dealership has already expended the money to get And got more than I dreamed of. the customer to purchase the vehicle Provident Insurance really got our F&I flying. Furthermore F&I doesn’t just produce, significant, ad- They’ve made a massive difference, through their ditional profit. It also provides:- involvement in our business, and contribution of • Increased protection for the dealership, the customer ideas. They’ve helped our F&I department become a and finance company (paid for by your customer) – top performer. from the increased opportunity to sell insurance poli- Our F&I has pretty much tripled in the past 12 cies. months, and I give Provident Insurance all the credit. • Increased customer satisfaction - from the protection They actually deliver what they promise. All sales provided by the increase in insurance product sales. people say they will do things. But Provident go • Increased long term customer retention – from your above and beyond the call of duty.” ability to better retain the finance customer. So, doesn’t it make sense you should maximise your op- – BRETT KILBURN, Kilburn Cars, Manukau. portunity for profit, protection, customer satisfaction and long-term retention by selling F&I? And, it’s not just for the big boys. Every dealership, regardless of size or location, has the opportunity to earn incremental profitability through the Introduce the Provident Profit sale of finance and insurance products. We know for a fact Factor into your business, that 3 out of 5 people that walk into your dealership and say talk to Steve Owens or visit they are paying “cash” for a car are in fact borrowing funds www.providentinsurance.co.nz from somewhere (that’s 60% of your customers). Why do they say they are cash customers? Because:

They feel they will have stronger negotiating power to MotorCover is marketed exclusively by Provident Insurance Authorised Dealers. Continued on page 32

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 31 FOCUS ON FINANCE

The importance of F&I – and it’s not just for the big boys

Continued from page 31 managers build rapport with their customers by utilising a get a better deal on the vehicle (and this is fuelled by other customer-focused process that includes open-ended ques- finance sources telling your customers to borrow from tions to learn as much as they can about the customer and them so they can benefit as a ‘cash customer’) their circumstances. Then, like a skilled professional, they They believe dealer finance is expensive compared to introduce their products to the customers, asking questions other sources (a legacy of the days when hire purchase rates and matching the product features and benefits to the cus- were expensive). tomers needs. The process is simple - building rapport and Some aren’t aware of the fact that you have a finance trust through discussion, whilst at the same time positioning facility in the dealership. themselves for the sale. Each of these common perceptions can be easily overcome and it’s important you do so because F&I starts with To elaborate a little further, focus on 3 main areas:- finance. Once you are able to convert the customer to • Build trust with genuine concern: I believe this is the dealer finance (and I would generally do so on the basis one sales skill that has the most effect on produc- that it’s competitive, it’s convenient and it frees up other tion, the ability to communicate genuine care for the finance sources for future needs), you then have the best customer. Being creative is essential, but caring is what opportunity to introduce your insurance products. tells your customer that you are looking out for their Based on our average dealer results of $900 “F&I Profit best interest, not yours or the dealership’s. We all know Per Retail Unit Sold”, a dealership selling just 30 used vehi- that “persistence beats resistence” but the motivation cles per month is earning an additional $27,000 F&I profit to never give up on a customer must be driven by the per month ($324,000 pa). fact that you care enough to keep pursuing products that you believe they genuinely need. And remember The Approach to Maximising Opportunities “people don’t care how much you know until they know I spend the majority of my time out on the road, visiting how much you care.” dealerships and working at the coal-face. From time to time, • Focus on the customer: Focus on what is best for the I’ll see missed opportunities where salespeople or business customer. This doesn’t mean you have to “ditch the managers have pre-judged customers or their circumstanc- pitch” but you have to provide relevance to your cus- es, talk more than they listen or apply pressure inappropri- tomers situation to help them see how your proposition ately as their main weapon to persuade customers to buy. will best benefit them. On the other hand, I’ve also seen some talented business • Know your stuff: Success equals knowledge. The more you know the more success you will have. Constantly grow your knowledge, don’t be afraid to try a new approach and experiment (even if it doesn’t work, you’ll be no worse off than you were before you tried it – but do it with integrity). And, draw on past personal/customer Fast Approval. Competitive rates. experience. The importance of providing an F&I process that communicates Shift your sales genuine care for your customer is focused on their needs and provides into top gear. a high level of knowledge and expertise cannot be underestimated. It will make the difference between To find out how we can a record year of F&I results as op- help drive more vehicle posed to just continuing to achieve sales for your business talk what you’ve achieved to date. to us on 0800 269 100 or If you want a different level of production this year, call me now visit www.udc.co.nz and let me work with you to help make that difference to your business.

32 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz STATSTALK USED VEHICLES

USED IMPORTS Used up, but slowing BROUGHT TO YOU BY: he used import market the month - but with a bit In second was Nissan, was up again in Sep- of extra effort Stadium’s down 4.8% to 2057 for a Ttember, but signs are southern-most branch came 17.6% market share, followed beginning to show the heat right in the end,. “We always in third by Mazda on 1876 is coming out of the market. get there in the end,” he said. vehicles,up 4.7% for a 16.1% Passenger registrations Graham wasn’t sure if Ki- share. lowed by the Suzuki Swift were up 4.7% to 11,667 from wis stashing their cash away Honda was fourth on on 530. 11,142 in September 2014. for RWC ‘hospitality expens- 1261, followed by Suzuki on The Toyota Corolla took That is well below the es’ was the main cause, but 651 units. fourth on 507 cars, followed annual rise of 14%, with the said most dealers in Dunedin Nissan’s Tiida lead the by the Honda Fit on 472. tally for the year at 108,164. found September a struggle. model charts, on 555 units. The biggest large car was Commercial registrations The top segment was the In second was the Mazda the Subaru Legacy in sev- fell during September, down $10-15K SUVs, which is gen- Axela on 542 vehicles, fol- Continued on page 34 4.2% to 749 units from 792 erally standard for the city this time last year. where “a lot of students, a lot September wasn’t the of retirees and quite a few fastest month in the deep beneficiaries” mean anything south, says Stadium Cars over the $20K mark can lin- Dunedin managing director ger on the yard, he said. Andrew Graham. “It was a bit tough, to be Tilda tops honest,” he told AutoTalk, Toyota lead the “and that was for both new passenger market in and used - it was hard work.” September, up 5.4% He said enquiry levels to 2745 units, 23.5% of were down at the start of the market. USED IMPORT COMMERCIAL MAKES SEPT SEPT % Mkt USED IMPORT COMMERCIAL MODELS MAKE Movement '15 '14 Change Share SEPT SEP MAKE MODEL MAKE MODEL '15 '14 TOYOTA 344 392 -12.2 45.3 TOYOTA HIACE 250 TOYOTA HIACE 299 NISSAN 171 162 5.6 22.5 ISUZU 40 36 Up 1 11.1 5.3 NISSAN CARAVAN 72 NISSAN CARAVAN 73 MAZDA 39 48 Down 1 -18.8 5.1 NISSAN VANETTE 28 MAZDA BONGO 40 FORD 26 28 -7.1 3.4 MAZDA BONGO 26 NISSAN VANETTE 38 CHEVROLET 22 22 Up 1 0.0 2.9 TOYOTA DYNA 24 TOYOTA REGIUS 34 MITSUBISHI 21 25 Down 1 -16.0 2.8 ISUZU ELF 23 ISUZU ELF 25 HOLDEN 17 10 Up 2 70.0 2.2 NISSAN NV200 23 TOYOTA DYNA 19 HINO 15 20 Down 1 -25.0 2.0 TOYOTA REGIUS 23 TOYOTA TOYOACE 17 VOLKSWAGEN 9 7 Up 1 28.6 1.2 NISSAN ATLAS 20 NISSAN ATLAS 16 OTHER 55 42 31.0 7.2 TOYOTA HILUX 13 NISSAN NAVARA 13 TOTAL 759 792 -4.2 100.0

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 33 STATSTALK USED VEHICLES

USED IMPORTS Used up, but slowing BROUGHT TO YOU BY:

Continued from page 33 vehicles, up 5.6% for a 22.5% Vanette on 28, Mazda Bongo enth on 356, the most popu- market stake. on 36 and Toyota Dyna on lar MPV the Toyota Wish in Isuzu was this on 40 units, 24. eighth on 290 and the most followed by Mazda on 39 popular SUV the Mitsubishi and Ford on 26. outlander in eleventh on The Toyota Hiace USED IMPORT PASSENGER MAKES 209. again lead the com- SEPT' SEPT Market MAKE Movement % Change Toyota lead the commercial ranks, with 15 '14 Share mercial market on 344 units, 250 units registered. TOYOTA 2745 2605 5.4 23.5 down 12.2% for a 45.3% Nissan’s Caravan NISSAN 2057 2183 -5.8 17.6 market share. was next on 72, fol- MAZDA 1876 1791 4.7 16.1 Nissan was second on 171 lowed by the Nissan HONDA 1261 1097 14.9 10.8 SUZUKI 651 660 -1.4 5.6 SUBARU 650 452 Up 1 43.8 5.6 BMW 526 496 Down 1 6.0 4.5 VOLKSWAGEN 445 436 2.1 3.8 MITSUBISHI 388 404 -4.0 3.3 AUDI 217 228 -4.8 1.9 MERCEDES-BENZ 199 197 1.0 1.7 FORD 116 126 -7.9 1.0 VOLVO 90 83 8.4 0.8 LEXUS 50 39 Up 1 28.2 0.4 MINI 49 32 Up 3 53.1 0.4 CHEVROLET 46 37 24.3 0.4 HOLDEN 43 31 Up 2 38.7 0.4 HYUNDAI 41 44 Down 4 -6.8 0.4 JAGUAR 40 30 Up 1 33.3 0.3 LAND ROVER 29 37 Down 3 -21.6 0.2 OTHER 148 134 10.4 1.3 TOTAL 11667 11142 4.7 100.0 AROUND THE COUNTRY DISTRACT SEP'15 SEP'14 % CHANGE USED IMPORT PASSENGER MODELS WHA 256 227 12.78 MAKE MODEL SEPT'15 MAKE MODEL SEP'14 AUC 5792 5458 6.12 NISSAN TIIDA 555 NISSAN TIIDA 577 HAM 753 715 5.31 MAZDA AXELA 542 TOYOTA COROLLA 568 THA 86 77 11.69 SUZUKI SWIFT 530 SUZUKI SWIFT 542 TAU 551 440 25.23 ROT 116 134 -13.43 TOYOTA COROLLA 507 MAZDA AXELA 508 GIS 24 33 -27.27 HONDA FIT 472 MAZDA DEMIO 378 NAP 220 162 35.80 MAZDA DEMIO 465 HONDA FIT 300 NEW 184 177 3.95 SUBARU LEGACY 356 MAZDA ATENZA 289 WAN 88 95 -7.37 TOYOTA WISH 290 TOYOTA WISH 281 PAL 313 259 20.85 VOLKSWAGEN GOLF 286 VOLKSWAGEN GOLF 273 MAS 59 49 20.41 MAZDA ATENZA 236 TOYOTA VITZ 263 WEL 858 888 -3.38 MAZDA MPV 224 SUBARU LEGACY 252 NEL 186 226 -17.70 MITSUBISHI OUTLANDER 209 MAZDA MPV 216 BLE 48 42 14.29 BMW 3 Series 207 BMW 3 Series 212 GRE 32 38 -15.79 TOYOTA ESTIMA 196 NISSAN NOTE 186 WES 7 6 16.67 TOYOTA VITZ 196 MAZDA PREMACY 181 CHR 1550 1529 1.37 TIM 88 111 -20.72 MAZDA PREMACY 171 MITSUBISHI OUTLANDER 181 OAM 25 32 -21.88 NISSAN NOTE 161 NISSAN DUALIS 170 DUN 279 318 -12.26 HONDA ODYSSEY 151 TOYOTA ESTIMA 160 INV 155 126 23.02 NISSAN DUALIS 150 HONDA ODYSSEY 159 TOTAL 11667 11142 4.71 TOYOTA IST 141 NISSAN SKYLINE 148

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34 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz STATSTALK USED VEHICLES

USED IMPORTS Used car arrivals lowest BROUGHT TO YOU BY: since February

he number of new and units in September are the New Zealand soil in August. used imported pas- lowest number to land on New car arrivals also Tsenger vehicles, as well New Zealand ports since the dropped in September to dropped to 244 units from as new and used light and month of February which 8352 units from the highest 282 the previous month, and heavy commercial arrivals in saw 9963 arrivals. numbers of monthly arrivals new light commercials under September all dropped from It is a rapid decline in in August being 11,712. 3500kg dropped to 2100 the previous highs of August. numbers from the 12,133 New heavy commercial units from 2978 the previous Used car arrivals of 8683 used cars that arrived on arrivals over 3500kg (GVM) month. Dealer numbers plateau at last

he number of registered motor numbers, since the end of the global September to 3480 now. vehicle traders in New Zealand financial crisis six years ago, numbers Industry observers put the small Thas fallen – albeit by only three have at last plateaued. decrease in the number of dealers to – in the last month. The number of registered dealers has more difficult trading conditions in the After months of increases in dealer fallen from 3483 at the beginning of retail auto industry.

USED IMPORT PASSENGER MAKES – THIS YEAR AUDI BMW CHEVROLET DAIHATSU FORD HOLDEN HONDA HYUNDAI MAZDA MERCEDES MITSUBISHI NISSAN PEUGEOT SUBARU SUZUKI TOYOTA VW OTHER TOTAL 15-Jan 220 472 60 20 173 32 1160 59 1992 229 511 2012 24 618 775 2648 420 366 11791 14-Jan 208 328 54 25 139 23 920 16 1655 155 363 1779 6 425 549 2206 311 308 9470 % diff 6 44 11 -20 24 39 26 269 20 48 41 13 300 45 41 20 35 19 25 15-Feb 190 475 81 18 169 30 1120 38 1678 200 388 1779 18 561 684 2414 403 326 10572 14-Feb 189 346 54 20 98 20 1015 18 1510 142 350 1619 12 361 550 2258 298 295 9155 % diff 1 37 50 -10 72 50 10 111 11 41 11 10 50 55 24 7 35 11 15 15-Mar 276 585 58 12 167 29 1240 54 1942 250 479 2076 25 655 772 2804 486 403 12313 14-Mar 177 413 61 15 107 17 1124 41 1765 161 371 1842 10 433 617 2441 373 279 10247 % diff 56 42 -5 -20 56 71 10 32 10 55 29 13 150 51 25 15 30 44 20 15-Apr 246 527 67 13 138 47 1179 34 1805 227 431 1753 18 605 653 2468 448 379 11038 14-Apr 196 391 50 12 112 22 1057 36 1524 171 42 365 13 380 560 2217 368 1985 9501 % diff 26 35 34 8 23 114 12 -6 18 33 926 380 38 59 17 11 22 -81 16 15-May 253 599 56 10 153 33 1391 36 1989 264 427 2106 15 739 736 2721 495 392 12415 14-May 210 471 63 8 126 32 1226 44 1783 206 413 2120 18 421 680 2677 399 326 11223 % diff 20 27 -11 25 21 3 13 -18 12 28 3 -1 -17 76 8 2 24 20 11 15-Jun 286 585 40 16 105 36 1403 28 2048 258 482 2132 14 677 711 2746 484 364 12415 14-Jun 240 469 49 15 115 27 1119 38 1718 161 417 2128 10 415 661 2532 358 288 10760 % diff 19 25 -18 7 -9 33 25 -26 19 60 16 0 40 63 8 8 35 26 15 15-Jul 269 629 45 23 150 40 1422 31 2219 281 519 2453 22 797 850 3152 527 462 13891 14-Jul 233 483 41 18 130 22 1278 41 1881 201 440 2393 16 462 775 2871 408 359 12052 % diff 15 30 10 28 15 82 11 -24 18 40 18 3 38 73 10 10 29 29 15 15-Aug 255 588 51 26 121 41 1198 30 1962 213 446 2136 14 694 746 2725 446 369 12061 14-Aug 213 462 46 20 122 1182 40 1780 186 398 2208 19 488 688 2667 426 343 11288 % diff 20 27 11 30 -1 1 -25 10 15 12 -3 -26 42 8 2 5 8 7 15-Sep 217 526 46 11 116 43 1261 41 1876 199 388 2057 22 650 651 2745 445 373 11667 14-Sep 228 496 37 11 126 31 1097 44 1791 197 404 2183 15 452 660 2605 436 360 11142 % diff -5 6 24 0 -8 39 15 -7 5 1 -4 -6 47 44 -1 5 2 4 5 YTD 15 2212 4986 504 149 1292 331 11374 351 17511 2121 4071 16725 172 5996 6578 24423 4154 3434 108163 YTD 14 1894 3859 455 144 1075 224 10018 318 15407 1580 3198 16637 119 3837 5740 22474 3377 4543 94838 %diff 17 29 11 3 20 48 14 10 14 34 27 1 45 56 15 9 23 -24 14 COMPETITIVE FINANCE. Tel: (09) 369 5276 PERSONAL SERVICE. www.autofinancedirect.co.nz

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 35 STATSTALK NEW VEHICLES

New vehicles continue to beat expectations

conomic indicators be Toyota remained the damned, the new car overall market leader for the Emarket is continuing to month of September with set a cracking pace. 19% market share (2,318 New vehicle registrations vehicles) followed by Ford again put in strong gains in with 12% (1,449 vehicles) September, the overall mar- and Holden with 11% market ket climbing 5% year on year share (1,402 vehicles). Year- to 12,474 vehicles. to-date Toyota, Holden, Passenger registrations Ford, Mazda and Hyundai were up 5.4% to 8,835 respectively remain the top vehicles, the strongest five overall market leaders. September since 1987, while In passenger, Toyota lead commercial registrations was doing better than other economic indicators with with a 17% market share were up 5.2% to 3639. economic news would lead sales in September up 5% (1,471 vehicles) followed by Motor Industry Associa- people to expect. on September 2014 and de- Holden with 12% (1068 ve- tion chief executive David “The new vehicle market livering a steady 5% growth hicles) and Mazda with 10% Crawford noted the market continues to flout general for the year-to-date,” he market share (891 vehicles). NEW PASSENGER MAKES explains. The Toyota Corolla was “If registrations of new the top selling passenger SEPT SEPT % Market MAKE Movement vehicles continues at the model for the month of '15 '14 Change Share pace it has done for the September (687 vehicles) fol- TOYOTA 1471 1582 -7.0 16.6 first 9 months of the year, lowed by the Holden Com- HOLDEN 1068 1044 2.3 12.1 MAZDA 891 671 32.8 10.1 the industry will easily modore (362 vehicles) and HYUNDAI 700 636 10.1 7.9 break the 130,000 unit the Mazda3 (244 vehicles). FORD 618 479 Up 2 29.0 7.0 barrier in 2015 for the first Toyota was the com- MITSUBISHI 604 515 Down 1 17.3 6.8 time ever” Continued on page 37 NISSAN 425 496 Down 1 -14.3 4.8 HONDA 353 388 -9.0 4.0 NEW COMMERCIAL MAKES SEPT SEPT % Mkt SUZUKI 314 302 Up 1 4.0 3.6 MAKE Movement VOLKSWAGEN 314 327 Down 1 -4.0 3.6 '15 '14 Change Share KIA 265 256 3.5 3.0 TOYOTA 847 739 14.6 23.3 SUBARU 258 175 Up 3 47.4 2.9 FORD 831 672 23.7 22.8 MERCEDES-BENZ 194 180 Up 1 7.8 2.2 HOLDEN 334 305 9.5 9.2 AUDI 187 184 Down 2 1.6 2.1 ISUZU 273 242 Up 1 12.8 7.5 BMW 182 181 Down 2 0.6 2.1 MITSUBISHI 225 244 Down 1 -7.8 6.2 JEEP 131 123 6.5 1.5 NISSAN 200 144 38.9 5.5 FIAT 114 68 Up 3 67.6 1.3 MERCEDES-BENZ 118 107 Up 2 10.3 3.2 SSANGYONG 111 108 Down 1 2.8 1.3 VOLKSWAGEN 113 131 Down 1 -13.7 3.1 DODGE 102 71 43.7 1.2 FIAT 92 48 Up 5 91.7 2.5 SKODA 81 68 Up 1 19.1 0.9 MAZDA 90 112 Down 2 -19.6 2.5 OTHER 452 528 -14.4 5.1 OTHER 515 714 -27.9 14.2 TOTAL 8835 8382 5.4 100.0 TOTAL 3638 3458 5.2 100.0

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36 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz STATSTALK NEW VEHICLES

up/Chassis Cab segment was the second strongest segment with 20% for the month of September and 21% market share year to date. At a dealership level, An- drew Archibald of Archibald Continued from page 36 selling commercial vehicle followed by the Hilux with 14 Motors in Kaitaia said the mercial vehicle leader for model with 743 vehicles reg- percent (4,158 vehicles) and dealership is about to hit the the month with 23% market istered, followed by the Toy- the Holden Colorado with 9 slow part of the year. This share (847 vehicles), fol- ota Hilux with 589 vehicles percent market share (2,711 won’t be helped, with a big lowed by Ford also with 23% and Holden Colorado with vehicles). drought predicted for the far (831 vehicles) and Holden 320 vehicles. Year to date the The sales of sports utility north. with 9% market share (334 Ford Ranger remains the top vehicles remains the domi- “From now on - for the vehicles). selling commercial vehi- nant vehicle segment with next few months, anyway, it The Ford Ranger re- cle model with 17 percent 33% market share for the really starts to quieten down mained the monthly top market share (4,967 vehicles) month of September and for us up here,” said dealer 33% year-t-date. The Pick- Continued on page 38 NEW AROUND THE COUNTRY DISTRICT SEPT'15 SEP’T14 % CHANGE WHA 169 155 9.03 NEW PASSENGER MODELS SEPT SEPT AUC 4198 3507 19.7 MAKE MODEL MAKE MODEL HAM 502 537 -6.5 '15 '14 THA 63 50 26 TOYOTA COROLLA 687 TOYOTA COROLLA 629 TAU 346 308 12.3 HOLDEN COMMODORE 362 TOYOTA YARIS 373 ROT 105 60 75 MAZDA MAZDA3 244 HOLDEN COMMODORE 277 GIS 44 31 41.9 HOLDEN CAPTIVA 241 MAZDA MAZDA3 270 NAP 201 190 5.79 MAZDA CX-5 210 HONDA JAZZ 256 NEW 140 123 13.8 TOYOTA RAV4 208 TOYOTA RAV4 251 WAN 48 65 -26 TOYOTA HIGHLANDER 194 NISSAN QASHQAI 213 PAL 211 230 -8.3 HYUNDAI SANTA FE 191 HOLDEN CAPTIVA 202 MAS 55 55 0 MITSUBISHI OUTLANDER 183 HYUNDAI IX35 186 WEL 555 720 -23 HYUNDAI IX35 174 MAZDA CX-5 178 NEL 134 117 14.5 TOYOTA YARIS 172 SUZUKI SWIFT 171 BLE 59 61 -3.3 MITSUBISHI ASX 167 HYUNDAI SANTA FE 155 GRE 14 15 -6.7 MAZDA CX-3 160 MITSUBISHI OUTLANDER 154 WES 4 8 -50 NISSAN QASHQAI 151 TOYOTA HIGHLANDER 153 CHR 1597 1656 -3.6 HOLDEN CRUZE 147 HOLDEN BARINA 141 TIM 54 80 -33 HONDA JAZZ 147 MITSUBISHI LANCER 130 OAM 20 24 -17 NISSAN X-TRAIL 144 HYUNDAI I30 129 DUN 221 272 -19 SUBARU OUTBACK 137 HOLDEN CRUZE 128 INV 95 118 -19 FORD MONDEO 134 NISSAN X-TRAIL 121 TOTAL 8835 8382 5.4 MAZDA MAZDA2 133 MAZDA MAZDA2 114

Fixed Rates. Fast approval.

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 37 STATSTALK NEW VEHICLES

New vehicles continue to beat expectations NEW COMMERCIAL MODELS Continued from page 37 SEPT SEPT MAKE MODEL MAKE MODEL principal Archibald, “especially with a low '15 '14 dairy payout.” FORD RANGER 743 FORD RANGER 595 September wasn’t particularly good or TOYOTA HILUX 589 TOYOTA HILUX 526 bad, Archibald describing it as “on par” HOLDEN COLORADO 320 HOLDEN COLORADO 280 with normal trading performance. TOYOTA HIACE 243 TOYOTA HIACE 186 “Utes always go good for us,” he said, MITSUBISHI TRITON 225 MITSUBISHI TRITON 158 noting that at the new end of the fore- NISSAN NAVARA 200 NISSAN NAVARA 144 court Mitsubishi Triton has been “going ISUZU D-MAX 145 ISUZU D-MAX 117 really, really well,” close to doubling the MERCEDES-BENZ SPRINTER 106 MAZDA BT-50 112 sales of its Isuzu D-Max yard mate. MAZDA BT-50 90 MERCEDES-BENZ SPRINTER 91 FORD TRANSIT 79 VOLKSWAGEN AMAROK 88 NEW PASSENGER MAKES ALFA ROMEO ALFA AUDI BMW CHERY CHRYSLER DODGE FORD WALL GREAT HOLDEN HONDA HYUNDAI JEEP KIA LAND ROVER LEXUS MAZDA MERCEDES-BENZ MINI MITSUBISHI NISSAN PEUGEOT PORSCHE SKODA SSANGYONG SUBARU SUZUKI TOYOTA VOLKSWAGEN VOLVO OTHER TOTAL 15-Jan 12 148 149 14 4 31 502 2 1280 356 746 109 198 123 52 722 191 64 469 528 101 74 89 87 116 337 1941 343 36 186 9010 14-Jan 27 180 195 19 12 44 827 10 853 360 665 96 243 92 40 521 200 63 353 444 100 44 75 78 158 527 1467 414 45 141 8293 % diff -56 -18 -24 -26 -67 -30 -39 -80 50 -1 12 14 -19 34 30 39 -5 2 33 19 1 68 19 12 -27 -36 32 -17 -20 32 9 15-Feb 3 151 193 16 2 44 514 0 765 252 694 123 247 47 56 674 155 54 472 371 71 30 75 106 172 289 906 372 46 157 7057 14-Feb 19 179 174 12 4 42 523 13 782 230 616 84 258 78 50 532 109 46 404 388 87 13 54 72 144 423 762 316 34 124 6572 % diff -84 -16 11 33 -50 5 -2 -100 -2 10 13 46 -4 -40 12 27 42 17 17 -4 -18 131 39 47 19 -32191835277 15-Mar 9 181 165 31 9 54 461 0 794 434 669 129 304 108 63 732 217 64 611 434 63 46 90 100 239 483 970 420 33 162 8075 14-Mar 26 205 171 23 10 54 602 11 764 367 774 100 277 78 65 621 157 46 640 408 114 17 83 83 184 505 1048 359 48 152 7992 % diff -65 -12 -4 35 -10 0 -23 -100418 -14 29 10 38 -3 18 38 39 -5 6 -45 171 8 20 30 -4 -7 17 -31 7 1 15-Apr 7 155 195 36 6 34 509 0 576 261 587 86 295 49 53 597 130 37 373 357 55 36 73 114 155 373 794 288 22 120 6373 14-Apr 31 159 199 20 9 32 441 13 662 200 571 115 231 66 28 485 120 48 334 469 92 22 67 70 125 309 764 308 37 123 6150 % diff -77 -3 -2 80 -33 6 15 -100 -13 31 3 -25 28-2689 23 8 -23 12 -24 -40 64 9 63 24 21 4 -6 -41 -2 4 15-May 18 170 214 32 6 30 562 15 798 196 531 108 230 68 43 524 191 34 354 415 65 21 67 68 126 406 996 371 30 113 6802 14-May 2 171 160 10 10 22 614 14 692 234 685 46 259 40 40 403 159 39 232 261 95 16 53 45 138 406 1072 301 21 107 6347 % diff 800 -1 34 220 -40 36 -8 7 15 -16 -22 135 -11 70 8 30 20 -13 53 59 -32 31 2651-90-7234367 15-Jun 16 163 144 17 4 86 466 0 870 285 773 146 292 70 47 697 173 58 691 281 48 30 117 145 245 404 2171 369 38 175 9021 14-Jun 12 196 174 54 3 31 714 17 960 165 940 104 299 84 47 543 183 41 617 307 103 36 90 120 153 475 1448 410 25 166 8517 % diff 33 -17 -17 -69 33 177 -35 -100 -9 73 -18 40 -2 -17 0 28 -5 41 12 -8 -53 -17 30 21 60-1550-105256 15-July 8 130 162 12 0 66 513 0 647 358 539 140 282 83 52 724 178 40 413 348 53 62 73 111 199 352 1179 312 39 197 7272 14-Jul 25 168 147 25 5 46 602 12 805 421 571 113 241 72 40 529 138 34 405 373 57 20 76 68 152 394 1030 307 46 149 7071 % diff -68 -23 10 -52 -100 43 -15 -100 -20 -15-6 24 17 15 30 37 29 18 2 -7 -7 210 -4 63 31 -11 14 2 -15 32 3 15- Aug 10 166 128 9 1 62 413 0 721 331 664 147 306 77 45 743 153 41 407 444 62 33 93 172 210 332 1512 291 48 131 7752 14-Aug 31 161 147 34 6 61 494 7 837 372 599 134 217 83 40 487 160 47 380 340 111 27 70 84 130 345 1169 289 46 175 7083 % diff -68 3 -13 -74 -83 2 -16 -100 -14 -11 11 10 41 -7 13 53 -4 -13 7 31 -44 22 33 105 62 -4 29 1 4 -25 9 5 187 182 12 3 102 618 0 1068 353 700 131 265 71 57 891 194 63 604 425 50 31 81 111 258 314 1471 314 56 218 8835 14-Sep 12 184 181 28 6 71 479 37 1044 388 636 123 256 57 54 371 180 52 515 496 107 12 68 108 175 302 1582 327 34 497 8382 % diff -58 2 1 -57 -50 44 29 2786 -66 80 -79 115 -72 0 1550 -48 -65 1062 -17 -90 -71 575 63 139 79387-80-83-565 YTD 15 73 1455 1452 158 31 514 4453 1070 6784 3238 5448 1222 2216 694 1307 5778 1419 1011 4289 3141 548 437 822 1201 1824 4366 10745 2760 1491 70238 YTD 14 201 1602 1602 247 61 411 5244 135 7505 2699 5903 977 2252 678 407 4613 1438 411 4002 3640 836 212 650 751 1347 3686 10266 3101 345 1640 66862 %diff -64 -9 -9 -36 -49 -36 -15 693 -10 20 -8 25 -2 2 221 25-1 146 7 -14 -34 106 26 60 35 18 5 -11 -100 -9 5 Your first choice in automotive lending. Ph 0800 500 832 or visit www.udc.co.nz UDC Finance Limited lending criteria applies.

38 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz STATSTALK SECONDHAND

Compliance made simple Secondhand stalling ...since 1999

ealer transactions of sales were down 0.1% to sales rose 22.3% to 378 bikes. used cars stalled in 12,756. Public sales rose 3% to DSeptember – barely Public transactions were 1503 motorcycles. changing against last year. up 4.1% to 41,204 units. Truck purchases by deal- Trader sales for the month In the bike market, dealer ers were up 14.7% to 2078, Public transactions were were down 0.8% to 17,615 sales were up 13.2% to 447 while dealer sales of used up 8.4% to 6519. units, while public-to-dealer units, while pubic-to-dealer trucks were up 5.2% to 2609.

SECONDHAND REGISTRATIONS − SEPTEMBER 2015 SALE TYPE WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL Cars 2015 Public to Trader 235 4815 1129 85 674 75 99 407 201 109 566 96 1121 231 113 44 1862 161 11 425 297 12756 Public to Public 1830 14432 3223 584 1964 869 358 1389 993 577 1621 390 2738 942 430 175 59 5182 498 156 1793 1001 41204 Trader to Public 558 6091 1487 235 924 299 170 557 391 180 753 178 1604 309 197 56 15 2266 232 54 629 430 17615 Cars 2014 Public to Trader 237 4405 1277 94 572 86 111 374 271 145 675 103 1151 214 147 48 1788 170 27 532 342 12769 Public to Public 1774 13558 3168 474 1937 707 334 1322 1004 435 1671 354 2725 978 428 203 76 5112 504 194 1685 935 39578 Trader to Public 568 5849 1465 222 1005 295 195 546 456 177 847 157 1453 315 200 89 24 2366 273 75 745 434 17756 Cars % Change Public to Trader -0.8 9.3 -11.6 -9.6 17.8 -12.8 -10.8 8.8 -25.8 -24.8 -16.1 -6.8 -2.6 7.9 -23.1 -8.3 4.1 -5.3 -59.3 -20.1 -13.2 -0.1 Public to Public 3.2 6.4 1.7 23.2 1.4 22.9 7.2 5.1 -1.1 32.6 -3.0 10.2 0.5 -3.7 0.5 -13.8 -22.4 1.4 -1.2 -19.6 6.4 7.1 4.1 Trader to Public -1.8 4.1 1.5 5.9 -8.1 1.4 -12.8 2.0 -14.3 1.7 -11.1 13.4 10.4 -1.9 -1.5 -37.1 -37.5 -4.2 -15.0 -28.0 -15.6 -0.9 -0.8 Motorcycles 2015 Public to Trader 8 149 39 26 3 11 10 2 16 12 53 6 26 15 2 378 Public to Public 59 449 130 20 82 31 13 52 42 22 58 17 135 47 20 13 5 185 26 8 66 23 1503 Trader to Public 14 146 48 9 30 6 2 15 12 2 18 9 48 7 2 1 2 41 7 1 21 6 447 Motorcycles 2014 Public to Trader 2 112 33 30 7 5 5 23 6 35 4 3 29 12 3 309 Public to Public 41 390 139 24 66 28 5 46 46 13 61 14 129 54 17 13 2 242 15 12 68 34 1459 Trader to Public 9 102 32 9 36 4 2 16 18 8 24 8 39 7 4 2 49 3 2 18 3 395 Motorcycles % change Public to Trader 300.0 33.0 18.2 -13.3 57.1 100.0 -60.0 -30.4 100.0 51.4 50.0 -10.3 25.0 -33.3 22.3 Public to Public 43.9 15.1 -6.5 -16.7 24.2 10.7 160.0 13.0 -8.7 69.2 -4.9 21.4 4.7 -13.0 17.6 0.0 150.0 -23.6 73.3 -33.3 -2.9 -32.4 3.0 Trader to Public 55.6 43.1 50.0 0.0 -16.7 50.0 0.0 -6.3 -33.3 -75.0 -25.0 12.5 23.1 0.0 -50.0 0.0 -16.3 133.3 -50.0 16.7 100.0 13.2 Trucks 2015 Public to Trader 60 679 204 22 126 20 45 75 43 19 133 25 103 54 33 20 216 36 2 92 71 2078 Public to Public 350 1880 544 103 313 135 85 360 179 78 283 84 366 165 90 54 9 789 94 32 316 210 6519 Trader to Public 121 677 245 45 150 54 54 106 70 36 135 32 147 68 40 19 7 340 39 11 121 92 2609 Trucks 2014 Public to Trader 58 473 200 23 76 26 43 80 48 22 118 21 89 46 41 4 244 49 5 69 77 1812 Public to Public 308 1646 503 93 367 124 69 217 167 75 291 71 341 186 77 45 25 797 96 37 298 181 6014 Trader to Public 108 586 234 47 130 51 53 139 89 21 123 38 116 52 42 20 6 343 58 26 111 86 2479 Trucks % change Public to Trader 3.4 43.6 2.0 -4.3 65.8 -23.1 4.7 -6.3 -10.4 -13.6 12.7 19.0 15.7 17.4 -19.5 400.0 -11.5 -26.5 -60.0 33.3 -7.8 14.7 Public to Public 13.6 14.2 8.2 10.8 -14.7 8.9 23.2 65.9 7.2 4.0 -2.7 18.3 7.3 -11.3 16.9 20.0 -64.0 -1.0 -2.1 -13.5 6.0 16.0 8.4 Trader to Public 12.0 15.5 4.7 -4.3 15.4 5.9 1.9 -23.7 -21.3 71.4 9.8 -15.8 26.7 30.8 -4.8 -5.0 16.7 -0.9 -32.8 -57.7 9.0 7.0 5.2

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AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 39 STATSTALK BIKES

Big bikes ready for the road

is the season to go rid- with 184, compared with ever, dropping 27%. Indian, says, “but it’s pretty competi- ing - and the time that 173 last year. Topping the Ducati and Aprilia all jumped tive. We’re lucky that we can ’TNew Zealand’s motor- table were Honda, with a by triple digits, 183.3%, 100% hold our prices for 2016.” cycle dealers start rubbing 54% jump year-on-year, and and 115.4% respectively. Pratt says the part of the their hands together. Harley-Davidson with a 34% The year’s total of 6317 market that his company oc- The cold, wet and miser- jump. Suzuki, Kawasaki and sales is looking healthy, and cupies is now tougher with able middle months don’t do Yamaha all saw drops - 13%, September is up, but only Triumph, Indian and Victory the bike industry any favours, 50% and 50% respectively. slightly at 1.5% over last year. taking a swing at the buyer’s but it looks like the first But new bikes are a Ray Pratt, chief executive dollar, and used machines glimpses of genuine sunshine different story altogether of Auckland Harley-Davidson landing here more often. and decent weather have - with Suzuki dominating says used imports are still “We’ll see how summer started to see some action in the market (124), followed making things tough - but goes,” he said, just before motorcycle showrooms. by Honda (73) and Harley reckons the year could end AutoTalk went to press and Used bike sales across Davidson (70). Honda was well for the big American the sun was blazing in Auck- September were up 6.4% on going backwards compared bikes, with October marking land. “Last Saturday the shop the same month last year, with September 2014, how- the brand’s new model year was full all day, and we had release. six sales - hopefully that’s the NEW BIKE MODELS “The market’s there,” he start of things to come.” MAKE MODEL SEPT'15 HONDA NBC 110BN 23 NEW BIKE MAKES HARLEY DAVIDSON STREET 15 500 18 SEPT YTD SEP % Market MAKE SUZUKI GW250 INAZUMA LAM 18 '15 '15 '14 Change Share % YAMAHA YZF R3AF 17 SUZUKI 124 1102 108 14.8 17.1 SUZUKI GSX-S1000FA 14 HONDA 73 802 100 -27.0 10.1 SUZUKI GSX-S1000A ABS 13 HARLEY DAVIDSON 70 455 53 32.1 9.6 YAMAHA MT-07 LAF 13 YAMAHA 69 545 57 21.1 9.5 SUZUKI UZ50 X 12 KAWASAKI 46 387 53 -13.2 6.3 TNT MOTOR ROMA 2T 11 BMW 43 230 33 30.3 5.9 USED BIKE MAKES FACTORY BUILT 30 206 22 36.4 4.1 APRILIA 28 181 13 115.4 3.9 % MAKE SEPT'15 SEPT'14 MARKET TRIUMPH 28 339 46 -39.1 3.9 CHANGE DUCATI 24 152 12 100.0 3.3 HARLEY DAVIDSON 66 49 34.7 35.9 KTM 24 220 18 33.3 3.3 HONDA 17 11 54.5 9.2 INDIAN 17 92 6 183.3 2.3 DUCATI 15 15 0.0 8.2 TNT MOTOR 16 217 22 -27.3 2.2 TRIUMPH 14 16 -12.5 7.6 FORZA 13 128 12 8.3 1.8 SUZUKI 13 15 -13.3 7.1 VESPA 10 104 34 -70.6 1.4 BMW 11 9 22.2 6.0 HUSQVARNA 9 12 1.2 APRILIA 7 4 75.0 3.8 PIAGGIO 9 123 19 -52.6 1.2 KAWASAKI 7 14 -50.0 3.8 SCOMADI 9 32 1.2 YAMAHA 7 14 -50.0 3.8 MOPED 8 113 18 -55.6 1.1 BSA 4 2 100.0 2.2 PGO 8 84 14 -42.9 1.1 OTHER 23 24 -4.2 12.5 OTHER 68 793 74 -8.1 9.4 TOTAL 184 173 6.4 100.0 TOTAL 726 6317 715 1.5 100.0

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40 |61771 AUTOTALK Auto File Banner OCTOBER Print Ad 2015180x56mm | www.autotalk.co.nz PRESS.indd 1 1/11/13 4:20 PM STATSTALK TRUCKS

New truck market continues to slow down Vehicle Inspection NZ

otal new truck regis- lead in the heavy truck mar- of registrations we will see than the previous corre- trations year to date is ket that we achieved by one between now and the end of sponding period. T3726 as at September registration more than Volvo the year,” says Doeg. Fourth placed Hino was 30, 2015, as opposed to at the end of August will Mitsubishi Fuso was sec- down 27 units from 87 in 3843 at September 30, 2014. continue,” he says. ond in new truck sales with September 2014 to 60 last Isuzu Trucks continues “But we are waiting for month. to erode into the market the official results to come share of its competitors, year through, so we cab be cer- Used go against trend again to date it has 838 registra- tain of this,” says Doeg. Registrations of used tions as opposed to 709 for Doeg says that the pre- trucks once again bucked the previous corresponding orders for the new VC36 the trend with an increase period. series Isuzu Giga have been to 144 units in September Isuzu Trucks dominated better than expected. 2015 as opposed to 136 in the new truck market last “This pre-order response the previous corresponding month; it took 128 registra- coupled with the success period. tions for September 2015, of the sales promotion for Year to date 1289 used three units more than the light and medium trucks imported trucks have been previous corresponding concluding in August registered up from 1061 at period in 2014. means there will be a the same time last year. Isuzu Truck sales and steady flow of new trucks 83 registrations for Septem- Isuzu was the top brand in marketing manager Micheal through the bodybuilder ber 2015 as opposed to 76 in used trucks with 32 registra- Doeg says the distributor is pipeline” he says. the same period last year. tions, up 6.7%. Toyota was happy with the result across “We are very happy with In third place for truck second with 31 registrations the three categories, heavy, our current market perfor- registrations in September, up 10.7%, and Mitsubishi medium and light. mance, and we are opti- Mercedes-Benz Trucks saw Fuso saw 17 registrations up “We are certain that our mistic about the number 70 registrations, three more 6.3%. NEW TRUCK MAKES USED TRUCKS MAKES SEPT SEPT % of SEPT SEPT SEPT SEPT % % of SEPT SEPT MAKE % Change MAKE '15 '14 Market '15 '14 '15 '14 Change Market '15 '14 ISUZU 128 125 2.4 25.0 838 709 ISUZU 32 30 6.7 22.2 247 240 MITSUBISHI FUSO 83 76 9.2 16.2 491 504 TOYOTA 31 28 10.7 21.5 352 253 MERCEDES-BENZ 70 67 4.5 13.6 283 297 MITSUBISHI 17 16 6.3 11.8 158 100 HINO 60 87 -31.0 11.7 493 565 NISSAN 17 17 0.0 11.8 111 113 FIAT 25 28 -10.7 4.9 162 140 HINO 15 20 -25.0 10.4 179 115 VOLVO 23 21 9.5 4.5 205 207 FORD 4 4 0.0 2.8 16 25 UD TRUCKS 22 22 0.0 4.3 194 183 MERCEDES-BENZ 3 2.1 12 13 KENWORTH 21 20 5.0 4.1 148 120 ALEXANDER DENNIS 2 1.4 2 4 DAF 19 16 18.8 3.7 157 151 CHEVROLET 2 3 -33.3 1.4 6 18 SCANIA 14 26 -46.2 2.7 160 149 DAF 2 1 100.0 1.4 12 15 OTHER 48 93 -48.4 9.4 595 818 OTHER 19 17 11.8 13.2 194 165 TOTAL 513 581 -11.7 100.0 3726 3843 TOTAL 144 136 5.9 100.0 1289 1061 Vehicle Inspection Specialists • Warrant of Fitness • Certificate of Fitness • Certification • Road User Charges • Registration & Relicencing • Drivers Licences • Vehicle Information Vehicle Inspection NZ • Vehicle Appraisal & Change of Ownership • Exhaust Emission Testing

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AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 41 TRIBUNALTALK

Mislabelled muscle Cameron v Ebbett Wellington Limited t/a Johnston Ebbett

n this case, the purchasers The purchaser claims that in early 2013 purchased when he went to collect the Ia 2012 HSV ClubSport vehicle he noticed that it did from the trader for $83,439 - not have an R8 badge on which they are now seeking it. He says “I was told that to reject. this particular model did not The purchasers say that in come with an R8 badge”. March 2015 they discovered The salesperson’s statement that the vehicle was not the says: “At no time during the model they thought that the sales procedure did (the trader had sold them which purchaser) mention any- they say they thought was thing about an R8 and if the a 2012 HSV ClubSport R8 badge was missing off the sedan. boot”. The purchaser told the The Tribunal notes that Tribunal that in May 2013 he there are four features which was looking to buy a R8, hav- was told of the purchaser’s employed by the dealer - are present in the R8 but ing previously owned a 2001 interest and made contact. made a written statement not in the ClubSport model, and a 2002 ClubSport and a The purchaser claims he told saying the purchaser said he namely: leather upholstery, a 2010 Maloo. the salesperson he wanted wanted a manual ClubSport. bimodal exhaust, an EDI unit One of the people that he a new 2012 ClubSport R8 The salesperson sug- and about 8kw of additional was working with was a rela- with a manual transmission gested the purchaser look engine power. The R8 also tive of a salesman employed in Alchemy Burgundy colour. at the trader’s website, as has a badge on its boot. by the trader. The salesman The salesperson - no longer they had a ClubSport manual The purchaser, in re- in the correct colour. The ply to questions from the purchaser acknowledges this adjudicator that he did not Dealer Information Notice but says he could not view know that the R8 vehicle Dealer Information Notice the website. The salesperson had leather upholstery, that MTA MEMBERSHIP INFORMATION instead sent him images. he did not notice it did not Cost Interests The salesperson says have a bimodal exhaust, and National Subscription of motor vehicle dealers a priority in his statement that he that there was an Enhanced sent the purchasers a Sales Driver Interface (EDI) unit $700 Excl GST & Branch fee Yes No  Agreement form and a in the vehicle but it was not Brand Year Capacity deposit slip and the Tribu- available and he thought Strong & nationally recognised Since 1917 4000 members nal notes that the vehicle nothing of it “I put this MTA is NZ’s largest dealer representative group: Franchise which the trader offered to down to being an Aussie op- dealers, used dealers, motorcycle dealers, and truck dealers sell was described under tion only and not in the user Market analysis - regular, “Vehicle Details” in that form manual.” Mediation Yes No accurate and detailed as “ClubSport R8 Sedan V8 The purchaser says that manual”. he believed the vehicle he Advocacy - pushing the causes HR Advice Yes No The purchasers travelled was purchasing was an R8,  for your industry to Wellington to collect the he did not think anything of Benefits - save money with MTA stationery Yes No vehicle on 13 May 2013, the value, and that he would  key business partners having arranged for it to be not have purchased the ve- IT Advice Business Range of Need a mentor financed by UDC Finance. hicle if he had known it was No Yes No Yes Managers newsletters  The salesperson showed not an R8. He says he only Industry Specialist training Business Advice the purchasers the vehicle, found out in March 2015 that research Yes No Yes No which was ready for deliv- the vehicle was not an R8, FURTHER INFORMATION ABOUT MTA ery, and they were happy to and he had approached the proceed with the purchase. trader for compensation. Website Events / get Free phone The Vehicle Offer and Sale The trader had offered to www.mta.org.nz togethers Yes No Agreement signed by the trade the vehicle in and give CONTACT US parties refers to the vehicle him the value of an R8 for Tony Everett 04 381 8827 as “HSV ClubSport R8 Sedan the vehicle, but the pur- V8 Man.” Continued on page 43

42 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz NEWSTALK

Volkswagen backs dealers amid scandal

Continued from page 1 to rectify the vehicles. The While there has been sig- every morning to establish 2009-2015 Passat models, vehicles are technically safe nificant bad press attached what new information is excluding the most recently to drive but notes additional to the brand in recent weeks, available in order to pass it launched model, with 1357 emissions are not a good sales are yet to take a signifi- on to the network as quickly vehicles. thing. cant hit. as possible. He has also spo- There are 874 Amarok “While Volkswagen New Passenger registrations ken to specific customers in utes, 680 Golfs, and 312 Zealand did not know about in September were barely conjunction with dealers. Caddy vans – as well as a the software discrepancy, we down on the same month When asked if dealers handful of other vehicles in would like to apologise for last year, from 317 to 314, were being taken care of in the mix. See the table below what has happened,” he told while sales were up on regards to targets and bo- for a full listing. customers in a statement. August. nuses - which could poten- Ruddenklau says few “We value the trust our Ruddenklau says sales tially be hit - without elabo- of the vehicles have likely customers place in us, and have been holding up, rating, Ruddenklau said: “We come into the market we will be in contact with although some deals have are looking after them.” through used channels, them as soon as a solution is been put on hold by buyers. How long the local brand with only 200-300 diesel identified.” He is expecting sales, how- rebuild will take is depend- Volkswagens ever sold in Volkswagen New Zealand ever, to eventually take a hit. ent on it being straight up Japan, and most United has also been in touch with “We are not naïve enough with its customers he says. Kingdom imports being the Commerce Commission to expect this is not going “It will be directly related of unaffected, Touareg and will keep it informed as have an impact.” to how we deal with the models. the situation progresses. Significant effort is go- situation, And I think New Ruddenklau says the “We have proactively been ing into backing the dealer Zealanders respect the ope- company is notifying cus- in touch with them, and they network, he says, who are ness and honesty with which tomers now, and they will have been very helpful.” having to face customers. we are approaching this.” be contacted again when (light subhead) Sales yet Ruddenklau says man- “But we are aware that is it is clear what will happen to take hit agement has been meeting going to take some time.”

Continued from page 42 The trader provided a R8, whereas it should have it been satisfied that the chaser was not prepared to copy of the “write up” sheet been coded as a ClubSport. purchasers were misled by accept the trader’s offer and prepared by the salesper- He admits the error but says the trader, would have been sought a full refund of his son, and a copy of the in- it was limited to the content unable to give the purchas- purchase price. ternet advertisement listing of the offer agreement and ers a remedy. In reply to a question on carupdater.com for the VOSA. The trader pro- In order for the Tribu- from the adjudicator, the vehicle, which shows it was vided a copy of the vehicle nal to consider making an purchaser agreed that he advertised as “New MY12.5 information report for the order under the Fair Trading had suffered no economic HSV E3 ClubSport sedan vehicle, which shows it is Act, the purchaser must loss as a result of receiving six-speed manual”. The correctly registered as a have suffered or be likely the vehicle instead of the trader says that the price “2013 Holden HSV Club- to suffer loss or damage as R8 model. list he produced shows the Sport Sed Man”. a result of the misleading The trader noted that the list price for the ClubSport The trader says that ac- conduct - which the pur- purchaser was a previous was $86,990, whilst the list cording to an email from chaser admits he hasn’t. HSV owner who had to price of the R8 manual was UDC, its paper work noted The Tribunal also con- know the features of an R8 $92,990 - so that the pur- the vehicle as a ClubSport siders that the purchas- compared to a ClubSport, chaser was not overcharged not an R8. It also felt it was ers have lost their right particularly as he claims he for the vehicle he bought. unlikely they would not to reject the vehicle by intended to buy an R8. His The trader says the error have noticed the car was not exercising it within a claims that he did not re- in the vehicle offer agree- not an R8 when relicens- reasonable time of the time alise he had not been sup- ment and VOSA occurred ing it. of supply. plied with an R8 for almost because a stock number There is a further reason The purchasers’ applica- two years “lack credibility.” was incorrectly coded as an why the Tribunal, even had tion was dismissed.

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 43 TESTEDTALK

Refined PX Ranger hits the road

ord New Zealand reck- show it at the recent media to $69,640 for the 3.2-litre all make a huge difference ons its newly refined drive day held at the new Wildtrak double cab 4x4 to the on-road feel of the PX FPX series Ranger ute Boomrock Kauri Bay off- automatic. Ranger. will maintain the vehicle’s road driving facility near The many engineering It’s far quieter on a road more than 600 unit lead Clevedon, in Auckland. refinements to the steering, than the outgoing model, over the ageing Toyota Ford staff say they are transmission, and engine - as particularly the Wildtrak, and Hilux. confident that buyers will well as cosmetic, infotain- it is by far a more refined The ‘blue oval’ brand saw prefer the 3.2-litre five- ment, and safety enhance- proposition all around. more than 738 Rangers sold cylinder diesel grunt of the ments - will also be attrac- All 4x2 models receive locally in August, a new re- Ranger. They reckon the tive to buyers. says Ford New an electrically locking diff cord for the company, and it buyer will ultimately decide Zealand managing director to assist with traction in off- knows that an all-new four- which is the better vehicle, Corey Holter. road conditions. A battery cylinder turbodiesel 2.8-litre and dealers report that the “The electric power steer- management system is fitted Toyota Hilux will launch at increased retail price has ing is amazing,” says Holter. so that portable electric the end of November. not been a barrier. “You want for nothing in this devices plugged into the USB If the Ford NZ brass is Prices start at $38,040 for truck. or 240V power socket, won’t worried by the incoming the 3.2-litre XL 4x2 single “The customer will decide drain the battery entirely, and Toyota model, they didn’t cab well side manual model which ute will remain at will leave enough charge to number one on the sales crank the engine over. charts, but we are confident Thanks to the new electri- in our vehicle,” he says. cally assisted power steer- NYK VEHICLE The top-of-the-line ing, not only are greater EXPRESS SERVICE Ranger Wildtrak mirrors the efficiencies created by losing Ford Mondeo Titanium by the hydraulic pump, but the offering features such as system can also damp out heated leather-clad seats, vibration through the steer- Reliable fortnightly Sync2 vehicle connectiv- ing wheel from corrugated vehicle logistics ity, adaptive cruise control, roads. service JAPAN to NZ lane keeping alert, and land A complete remap of the keeping aid Puma five-cylinder diesel Key cosmetic changes unit’s engine control soft- PORT TO PORT / to the Ranger are the new ware, improved efficiency front grille, with a trapezoidal and performance. DOOR TO DOOR design, reminiscent of the US Sadly, the five-pot engine to Auckland, Christchurch, built Ford F-150 truck, which is no longer as raucous as it Wellington, and Nelson is wholly intentional says used to be, but the perfor- Ford New Zealand. mance is still there. In addition, the Ranger The old Ranger was a Full MPI inspection sports new headlamps, new car-like drive, and the new service from Kawasaki, recessed driving lamps, new Wildtrak auto continues to Osaka, Nagoya and Moji wheel designs and a cargo be the same, with a car-like light on pick up models. interior to match. We particularly liked the SUN PHOENIX CO.,LTD. + Marine Insurance available Driving impressions new touch-screen that offers For eFFIcIent custoMer Focused servIce Lower rolling resis- greater functionality as well tance tyres, coupled with as ease of use. The new Hi- contact NYK redesigned engine and lux is going to have a battle Auckland Branch 0800 695 546 Christchurch Branch 0800 695 2424 transmission mounts, and on its hands to tempt people email: [email protected] a completely redesigned away from this much-im- cable-gearshift mechanism, proved Ford.

44 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz AUSSIETALK W Australian dealer news at www.autotalk.com.au FOLLO

Chrysler ‘kickbacks.’ commissioner Rod Stowe in AUSSIE TALK just two years. AutoTalk’s senior Former Fiat Chrysler Australia Aussie journalist boss Clyde Campbell’s wife The Office of Fair Trad- Max Pichon looks DIARY Simone allegedly received se- ing started legal proceedings back at the major cret “kickbacks” from company against the dealership and stories in the past Stowe advised those who had Max Pichon Max month on our deals. Austrailian The alleged payments – a vehicle being sold on behalf AutoTalk website totalling over $620,000 – stem by the dealership pick it up. – autotalk.com.au from contracts and deals signed by Clyde Campbell and Veronica Johns, his successor September 25 brand in Australia. as managing director at Fiat September 7 Chief executive officer of Chrysler Australia. 40,000+ emissions- Ferrari Australasia, Herbert Ap- dodging VWs in Greater Western pleroth, said the new Brisbane Australia: report Sydney home showroom was opening at the September 22 ideal time, with the GT and Volkswagen and Audi vehicles to latest Lexus sports car segment up 23% in CR-V diesel off while caught up in the global emis- dealership Queensland year on year. sions evasion scandal could Work has started on the latest dollar’s dying number more than 40,000 in Lexus dealer network – Lexus ACCC forces Fiat Honda Australia will re-intro- Australia. of Macarthur – in the greater Chrysler to revamp duce its diesel CR-V – if the Fairfax Media reported exchange rate comes right. that it obtained confidential western Sydney region. customer service Lexus of Macarthur will be Spokesperson Melissa industry figures that show Following an Australian located on an 8000m2 site in Cross confirmed to AutoTalk 42,918 Australian vehicles have Competition and Consumer Gregory Hills, in the Camden that the diesel variant of the the 2-litre turbo diesel engine Commission (ACCC) investiga- local government area, and SUV had been put out to that’s at the centre of the tion into consumer guarantee commence business in early pasture. scandal. complaints concerning vehicle 2016. She said this was partly due faults and how car manufac- to “significant exchange rate ANCAP appoints turers handle those com- pressures” weakening the Aus- chief exec plaints, Fiat Chrysler Australia sie dollar. ANCAP named James Good- September 9 (Chrysler) now has to revamp win as its new chief executive its aftersales customer care Car loan broker cops officer. Brisbane dealerships program. partner up to form 10yr ban The appointment of the The Australian Securities former Australian Automo- Warwick Automotive and Investment Commission bile Association government A new motoring partnership September 18 (ASIC) has cancelled Fernando relations and communications is set to drive two Brisbane- Morais’ credit licence and director was made by the based Ford and Nissan dealer- ACCC clears Esanda blocked him from engaging in ANCAP board. ships to new heights. purchase credit activities, reports Smart Goodwin also worked for It is a newly formed part- The Australian Competition Company. the Federal Chamber of Au- nership between local dealer and Consumer Commis- An ASIC investigation found tomotive Industries (FCAI) fol- principal Chris Murphy and sion will not block Macquarie that Morais breached credit lowing a career in journalism. Brisbane-based automotive Group’s acquisition of dealer legislation by providing false group Motorline. finance company Esanda. documents in five consumer The Warwick Daily News In a statements the ACCC credit applications to BMW September 29 reports that the new venture said it would not oppose the Finance, trading as Alphera comes just months after the proposed purchase of Esanda Financial Services. Smith steps down Warwick site’s separation from from the ANZ bank. from AHG board Southern Cross Automotive Despite Esanda and Mac- 7-Eleven deputy chairman Mi- Group, which was placed into quarie Group both financ- September 24 chael Smith is stepping down receivership. ing motor vehicle dealers, from the Automotive Holdings the competition watchdog ‘Lemon’ warning Group board. concluded that the purchase over suspended A spokesman for the group September 11 wasn’t likely to “substantially said his decision came before lessen competition” in the dealership the widely-publicised scan- Sole Ferrari dealer bailment and point-of-sale A NSW dealership was sus- dal over underpaid workers finance market. pended from trading and a opens in QLD public warning issued over its at possibly two-thirds of the Ferrari Brisbane has opened its alleged sales of defective cars. franchised convenience stores. doors to customers as the sole Familyautogroup Pty Ltd The case sparked an inquiry official Ferrari representative September 21 had been the subject of 64 by former ACCC boss Alan in Queensland, becoming the complaints and 44 enquiries to Fels. fifth dealer of the Maranello Court told of Fiat the office of NSW fair trading

AUTOTALK OCTOBER 2015 | www.autotalk.co.nz | 45 DIESELTALK

lion funding request earlier this company a nationwide rural year for a full 9km reseal of transport footprint. DIESELtalk editor Robert Barry Wrights Rd and McCardle Rd, The trading brands ac- looks at the month DIARY according to the New Zealand quired in the joint-venture gone by on Herald. deal include Farmers Trans- dieseltalk.co.nz

Robert Barry Robert port, Bushetts Transport, CL -daily news for the heavy transport and Drager and Sons, and Opotiki equipment sectors. September 21 Transport. According to Hawkes Bay Biosecurity risk Today, the purchase is a joint The government is considering impact surprises venture with former Bushetts September 2 whether it will raise the limit manager Wayne Robinson, of biodiesel blend from 5% to freight industry who is now the acquisition Liquidation 7% for diesel available at the Members of the Bay of Con- operations manager. application for pump. nections Freight Logistics It is part of a government Action Group (FLAG) were Naked Bus goal to promote biofuels surprised by some briefings on September 24 An application to liquidate where technically and com- the impact of biosecurity risks prominent inter-city bus op- mercially viable, and reduce to the sector. Attack on grader erator Naked Bus was made by greenhouse gas emissions. The group included road another bus company. and rail freight owners and disappoints Stuff.co.nzreported the operators, planners and An act of vandalism on a application was made by Ngai September 14 representatives of service and Downer-owned grader has Tahu-owned Go Bus, which support industries. left Tairawhiti Roads journey charters to operators such Joining forces to Ministry of Primary Indus- manager Helen Harris gob- as Naked Bus, alongside its tries (MPI), Kiwifruit Vine Health smacked. school and commuter bus reward safer driving and biosecurity operations Harris says the attack on operations. NZI says its new heavy motor staff briefed FLAG members on the grader, lent to contrac- A notice of liquidation was vehicle insurance programme the biosecurity risks that could tor Fulton Hogan to assist in placed in the NZ Herald. is rewarding commercial car- potentially hit day-to-day cleaning up the State High- riers that demonstrate safer business operations if ignored. way north of Ormond after driving behaviour. serious flooding, was ex- September 4 The NZI and Lumley safe New $64 million tremely disappointing. driving rewards programme contracts awarded to “The grader was broken into Call for greater focus offers an excess waiver for at the Ormond Weigh Bridge,” commercial vehicle operators SouthRoads says Harris. “It had been parked on coastal shipping that meet certain driver safety The NZ Transport Agency is there since Friday ready to The government needs to benchmarks. negotiating a new type of respond to any event issues.” revisit the integration road, rail, The programme is a col- maintenance contract for the and coastal shipping, accord- laboration between the in- Southland state highway net- ing to the Customs Brokers surer and transport technology work with a partnership led by September 29 and Freight Forwarders Fed- company EROAD. SouthRoads Ltd. eration (CBAFF). SouthRoads is the pre- Increased vehicle CBAFF president Glenn ferred supplier for the new cargo boosts port Coldham says that calls by the September 16 $64 million ‘network out- New Zealand Shipping Fed- comes contract.’ profit eration for the government Northland Truck It will run over seven years, Lyttelton Port of Christchurch to stop ignoring shipping and is designed to deliver (LPC) says volumes of general infrastructure and recognise operators asked to greater efficiencies in terms cargo such as motor vehicles it as a strategic national asset cough up of operation and costs, said and dry bulk freight exceeded highlights a significant issue. Whangarei District Council the Transport Agency’s acting expectations and helped its “Coastal shipping should (WDC) is asking Northland southern business manager Ian $20.5 million profit for the not be ignored, given the high truck operators to cough up Duncan. financial year to June 31, 2015. number of international ports $132,000 to cover a shortfall The previous year’s profit we currently have in New Zea- for sealing dusty roads. was $343 million, but this land,” says Coldham. The district council al- September 22 figure included a large insur- located $400,000 to seal ten ance payout relating to the 100m strips along Wright, National footprint 2010 and 2011 Canterbury September 7 McCardle, and Pipiwai Roads, earthquakes. west of Whangarei, where for HWR Group The port company reported HW Richardson Group (HWR) Government truck-generated dust has an- lower revenue of $109.1 acquired the former transport noyed residents for more than million - a drop from $115.8 considers raising division of Eastern Equities a decade. million in the previous corre- Group, which now gives the biodiesel blend limit NZTA declined a $4.5 mil- sponding financial period.

46 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz NEWSTALK

Aussie imports put buyers write off

Continued from page 2 hicle’s details into the NZTA’s much we should know about overturn the sale.” isolated case - there are working database - make, a vehicle’s pedigree and how By not declaring previ- claims that up to 60% of model, chassis number, col- much should the customer ous damage to a customer, Australian used imports, our, odometer reading.” be told? Where do we draw even not knowing about it, amounting to 240 vehicles a The documentation, the line? If you know that a a dealer who didn’t know a week, are write-offs. including photographs, that car was written off in Austral- vehicle had been written off Vinsen disputes this comes with this process is ia, you’re duty-bound to tell in Australia could be in the figure, saying it’s “impossi- key. them - but if you’re selling same boat, albeit innocent- ble” to know for sure, but is “The border inspector is as it for the second time here, ly, but this is yet to be tested adamant that the process of critical as you like - and there and aren’t aware of what’s its in the tribunal, says Vinsen. importation, inspection and is a bit of dynamic tension history is, there’s no obliga- He says the recent issues certification are “very robust.” here - but he can flag it if he tion to go digging back to around written off Austral- Part of this process al- thinks it warrants any further find out. ian imports underlines the lows for a vehicle flagged inspection down the track. “If a car was written off need for buyers to know what as damaged to be fixed and I’m not saying he does it un- in Australia and comes here they’re buying, ask the right resubmitted for inspection, necessarily, but he puts the but whistles through without questions and do their home- he says. Failing for a second flag on it if there’s any doubt. being flagged, I’m not sure work before signing a deal. time means the vehicle is “If the compliance office what the obligation really is, What do you think of the flagged for life. thinks that it’s minor enough or what the public should be Aussie write off situation? “These vehicles are written damage to have the flag told - if you did lie about it Find this article on autotalk. off in Australia,” explains Vin- removed, they’ll get a second or stayed silent about it, I’d co.nz, scroll down to the sen, “and for the most part, opinion and then put an ap- think that the Motor Disputes comments section and let they are written off for com- plication through to NZTA to Tribunal could at some stage, us know… mercial reasons, and in many have it taken off. NZTA will cases, it’s quite cosmetic. For look at all of the documenta- example hail damage to roof, tion, and the photographs bonnet and boot - the insur- and decide yes or no. AHG continues ance company decides it’s “If the flag is not taken too expensive to fix, writes it off, it can go back through off, pays it out and sends the the system and eventually growth car to auction.” get registered and sold. But “There are two issues when it is sold, it will have Continued from page 1 here,” he says. “One of them the box ticked next to “Was a general managers role. is about safety - of which this vehicle imported as Bruce indicated to Auto- there is absolutely no con- damaged? Talk that AHG sees strong cern. The other is disclosure “That means everything’s potential in the west Auck- - what the public needs to there - it’s on the window land market, but would not know so they can make an card. be drawn on if this meant informed decision when “The grey area is where additional brands for the they’re buying a vehicle, and things have been imported group in the area. that’s harder. and haven’t been marked as “We see this as part of “Every vehicle is inspected damaged. It’s like if you’ve a wider expansion in the - a border inspection consist crashed your car, taken it to west.” of three components, one is the panelbeater and had it In the past, the John biosecurity, one is physical, repaired and nothing is ever Andrew brand in particular has had an expansion in the and the other is structural. recorded. There’s no record, western side of the city. “Before the inspection there’s no scrutiny - it’s just Bruce says the company has strong growth intentions by an accredited agent, that a vehicle that’s been dam- for the New Zealand market overall. vehicle’s identity in New aged during the course of its “We want to grow, the market is strong, the economy Zealand starts to be created, normal life. is strong.” the agent then enters the ve- “It comes back to how

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