www.autofile.co.nz MAY 2019

THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS Review of audits on Specialised compliance needed training that’s proven to Automotive industry responds to agency’s investigation to increase profits tackle conflicts of interest across used-imports supply chain

he NZTA is being urged but VIA would like to see them to move away from paper arrive unannounced and, for Lowdown on chases to random on-site example, “look at the last 10 cars Trade Me’s checksT to ensure entry-certification that have been certified and pull new CEO processes are properly followed. them apart”. The suggestion has been put “That would involve going p11 forward by VIA (the Imported through the whole process and Motor Vehicle Industry Association) having an in-depth look at those 10 during consultation on the vehicles,” says Vinsen. p 16 agency’s operational policy for “If the certifier says, ‘only four managing the integrity of used- of those cars are still here because vehicle certification inspectors and six have gone to dealers’, the NZTA inspection organisations. should visit those traders to check Space technology The review is being carried out them. If the dealer then says three takes off because the NZTA has received have been sold, the agency should feedback it should change its visit the owners and thoroughly approach to assessing conflicts of Used-imports entry certification is under check those as well. Holden NZ NZTA scrutiny interest (COIs). “Then it can be ensured all boss’ rise It believes public confidence compliance systems.” 10 vehicles have been properly to the top may be hit if entry certification He says integrity can best certified with checks done properly. is carried out by those with be ensured by the regulator “That is a strong p26 ownership interests in vehicles implementing a “regimen of recommendation VIA has instead they are certifying and there are random unannounced physical of just the predetermined paper potential safety risks because of output auditing”, while it’s the chase in place at the moment.” the way the system works. NZTA’s responsibility to manage As for the NZTA’s focus on COIs, Bennetts However, VIA’s chief executive actual and perceived COIs. “VIA is straight down the middle on recharges David Vinsen says: “The real upshot Vinsen says officials currently the issue”. tourer of this process is that it provides turn up at inspection locations “Businesses should have the racing the agency with an opportunity at prearranged times to check if right to arrange themselves in an p 29 to improve its auditing of entry- processes are being adhered to, efficient way and enter contracts

[continued on page 4]

GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE Tel: +64 9 825 0888 www.jacanna.co.nz Call Steve Owens now on 021 947 752

GUEST EDITORIAL Celebrating three

DIRECTORS EDITOR Brian McCutcheon Darren Risby decades in sector [email protected] [email protected] ph. 021 455 775 JOURNALISTS Neil Taylor looks back on his career from joining Darren Wiltshire Sue Brebner-Fox [email protected] [email protected] a team of three after starting up on his own ph. 021 0284 7428 Lucy Pink [email protected] n March from different sources DESIGNER 19, 2019, I throughout the world. Angela Smith MOTORSPORT celebrated 30 I wouldn’t have [email protected] Mark Baker [email protected] yearsO with Autosure. I dreamt all those years certainly have a few more ago that I would see what Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. grey hairs now than when we’re now experiencing Back copies are also available on the website. I started, but what a great with electric and self- Copyright: Published monthly by 4Media Ltd, journey it has been. NEIL TAYLOR driving vehicles. PO Box 6222, Dunedin 9059. I’ve seen many National claims manager In terms of claims, All statements made, although based on information believed Autosure changes in the we’ve seen a marked to be accurate and reliable, cannot be guaranteed, and automotive industry over this increase in repair costs over the no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or time, but there are some things past five years, particularly. This is part without written permission, whether by copying or any that were challenging then and partially due to the impact of the other means, is strictly forbidden. remain so today. modern vehicle and the All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) One that particularly comes effect new technology has had on to mind is the necessity to the industry. expediently deal with claims A good example of this is the to ensure vehicles are repaired challenges that correct diagnosis and back on the road as soon before starting repairs present. as possible. At Autosure, we Only recently, we were involved in Vehicle Inspection NZ have fine-tuned our part in that a replacement engine claim only to role over the years to achieve find that a fuse was at fault. Correct maximum efficiencies. and efficient scanning equipment Back in the 1980s, I set up my is essential. Entry Certification own loss-adjusting company and, One thing that hasn’t changed after a couple of years managing over the years, for us and everyone specialists claims for numerous underwriters, in the industry, is the need to I was invited to join Autosure. So I be 100 per cent committed to hopped into my Fairmont Ghia on customers and this is at the heart March 19, 1989, and began my new of everything we do at Autosure. career with the other three people I’m thankful for the special in the team. and valued relationships that Since then we’ve grown to a have evolved over the years with business of more than 50 staff numerous business partners, and developed a great, positive associates and fellow employees team culture, which is one of across the country. the key reasons I’m still here as These have enabled me to national claims manager three gain in-depth knowledge in decades on. entertainment, game fishing, golf We worked hard during the first and harness racing – long may that 15 years, but also had a great time learning curve continue and thank doing it and enjoying the rewards. you all for your hospitality. • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges The introduction of Japanese I work with a great team of • Registration & relicencing • Exhaust emission testing used imports made the biggest people who will collectively ensure impact that I can recall during the future success of Autosure that era and, of course, we now as a leader in our industry. I’m 0800 GO VINZ VINZ.CO.NZ Tel: +64 9 825 0888 www.jacanna.co.nz import a huge variety of vehicles extremely proud to be part of it. www.autofile.co.nz 3 news

[continued from page 1] for their benefit unless there is the avoided to maintain the integrity changes will drive parts of t over-riding effect of diminishing of the system,” it says. “The changes the industry to be much competition,” Vinsen told Autofile. would not prohibit an entry less transparent in business “We don’t want to see a race certifier from importing used arrangements. to the bottom, and it’s up to the vehicles or carrying out border- “The greatest impact will be on regulator to identify and deal with inspection services.” companies already trying to do actual or perceived conflicts of the right thing. These changes will interest.” MAKING VIEWS KNOWN make them less able to compete The NZTA’s approach to VIA – along with the Motor with parts of the industry that have assessing COIs is set out in Industry Association (MIA) and not, would not and will not report operational policy. When it was Motor Trade Association (MTA) – actual conflicts.” created, some integration of the have made formal submissions on used-vehicle supply chain was the suggested entry-certification WORKING WITH INDUSTRY David Vinsen, chief executive of VIA accounted for, “but not to the changes. The MTA says definitions being extent of what has occurred”. The background is covered to satisfactory standards. used by the NZTA in regards The proposed changes in VIA’s submission, which states “Actual and perceived conflicts to COIs may “lead to mistrust include clarifying the definition companies “previously understood are assumed to be harmful to the and the breakdown of working of COI, strengthening controls to be unrelated have created a integrity of entry certification,” says relationships” unless revised, and for appointing entry-certification commercial grouping”. There is Kit Wilkerson, VIA’s policy analyst it raises a warning flag over how inspectors to avoid them, and also a segment of the industry and adviser. changes have been drafted. ensuring they tell the agency about that isn’t part of a grouping that “We submit it’s the regulator’s “Terms used are open to conflicts. has expressed its “perception a role to identify and deal with interpretation,” says Graeme Swan, It all means the NZTA could COI exists”. COIs. This may include requiring the MTA’s sector manager – repair. no longer permit an organisation VIA’s position is businesses applicants to provide sufficient “What one party may think is a to entry certify a vehicle it has should be entitled to enter information on ownership and COI, another may believe it’s not a an ownership interest in or has arrangements for reasons of commercial relationships. conflict at all. conducted border inspections for. efficiency, commercial benefit and “We support the effort, but “The NZTA needs to issue “The agency has reached a or improved regulatory compliance suggest the proposed regulation guidance on how it will be satisfied preliminary view COIs should be if regulatory requirements are met would likely lead to perverse functional separation will exist outcomes and offer suggestions on between entry certification and ways the case for changes can be other inspection, repair and made stronger.” maintenance activities to ensure a VIA’s primary concerns with the level playing field.” proposals – and policy in general – Swan says an agency document are based on the review ensuring already exists for in-service the integrity of the process and certification giving examples of preventing unsafe vehicles from potential conflicts. entering the fleet. He adds: “The agency should Specialists in Its submission states no issue guidelines on how it may be pre‑shipment inspections evidence has been provided satisfied COIs may be addressed. that COIs the proposed changes It’s imperative we work together to in Japan & UK are designed to prevent harm build a robust system so only safe the process’ integrity, or any vehicles are certified.”  Full border inspections such conflicts have increased Given the agency’s crackdown the number of vehicles unfit for on in-service inspections, the  Authorised MPI inspections purpose being certified. MTA believes its entire document  Authorised NZTA inspections VIA adds it hasn’t been on proposed policy should be proven that a company cannot reviewed and amended to better  Odometer verification be involved in different parts of reflect what’s required in its import and entry-certification regulatory capacity, and from  Pre-export appraisal processes and have failed to fulfil appointed inspecting organisations their roles with integrity. and vehicle inspectors.  Vehicle history reports “The proposed changes would “Overall, the MTA would like require businesses to prove COIs to see a process to manage do not exist,” adds Wilkerson. COIs instead of trying to limit or “It is, however, impossible to prevent them.” prove a negative. Most Western In regards to key proposals, legal systems’ burden of proof the MTA adds it’s unclear in whose is on the one making a claim. mind any actual, potential or JEVIC NZ The lack of a COI isn’t a claim, appearance of a conflict needs to it’s the lack of a claim. occur – the agency’s, an inspecting 09 966 1779 www.jevic.co.nz “We foresee the proposed organisation’s or the public’s. 

4 www.autofile.co.nz news

t It’s also unsure of the intended Overall, the MTA wants the comply and are safe to operate on under different commercial drivers audience. “Is this an internal agency to be more transparent roads. and regulatory constraints for document for the NZTA and in its organisational structure so A key point in the MIA’s entry compliance. staff, or for the wider industry stakeholders can easily find the submission on the NZTA’s proposals The new-vehicle industry’s including inspectors, inspecting right person or team to contact is while they are aimed at used franchise model has distributors organisations and industry when issues arise. imports, they also have implications not owning dealerships or having bodies? This needs to be spelt out.” It believes the NZTA is working for entry compliance for new common directors. As for its purpose, the MTA to improve its vehicles. “Pre-delivery inspection believes it is light on emphasising engagement “Material [PDI], WOF and COFs are carried vehicle safety, while in one section with industry or actual COIs out by dealers or third parties,” there’s no mention of the agency’s on important “It’s imperative shouldn’t exist,” says Crawford. “Going forward, statutory function to suspend or consultations we work together says Crawford. some distributors may bring PDI revoke inspecting organisations and appreciated to build a robust “Perceived in-house. If they do, it will be or inspectors for failing to comply the chance to conflicts should contracted out, but the perception with conditions of appointment. present its views system” be able to of a COI is too great if the service These as options to encourage on managing – Graeme Swan, MTA exist in certain provider also becomes the compliance with requirements conflicts to a circumstances, inspecting organisation.” have been flagged up by the MTA. panel of senior officials. but need to be transparently PDI ensures new cars meet Also, its submission states: managed. required standards before entry “Some listed certification activities DIFFERENT REQUIREMENTS “But there comes a point with certification with the NZTA don’t line up with what’s listed A meaningful separation certain ownership models that auditing distributors to ensure under section 2.2(1) of the Vehicle needs to exist between border while it might be possible to processes are robust. Standards Compliance Rule and inspection, entry certification, remove or manage actual COIs, “The cost of taking short-cuts there appears to be a couple of repair certification and vehicle a strong perception of a conflict is too high as it invariably means categories not mentioned at all. ownership to maintain system exists in consumers’ minds. When a loss of distributing brands,” “These are low-volume integrity when it comes used this is the case, it should be explains Crawford. “Put another vehicle specialist inspection and imports, says the MIA. treated as a material COI.” way, new-vehicle distributors certification, and new light-vehicle It believes this is necessary to The MIA highlights the new cannot close and pop up under a entry inspection and certification.” ensure all cars entering the fleet and used-import sectors work different company name to avoid [continued on page 6]

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www.autofile.co.nz 5 news

[continued from page 5] compliance failures.” COIs, require them to have policies However, the used-imports to manage them and audit sector is different with operators compliance to ensure they don’t choosing a wide range of vehicle “It’s important become actual conflicts.” Driving great brands, ages and types. The MIA’s second scenario The MIA’s observations of testers remain has common directors between the used industry over the past independent” supply-chain companies combined 30 years shows “while there with common ownership. It are good operators, it’s well- – David Crawford believes this gives rise to high known it contains elements of perceived COI levels. opportunistic behaviour that isn’t “This shouldn’t be permitted. partnerships always as aligned to the standards importing vehicles re-engineered well-defined and banned. We expect the agency to ensure all it should be”. from half-cuts and bringing in “The NZTA’s guidelines don’t arrangements are treated the same.” Crawford says: “Overseas cars with open recalls without robustly define a material COI. This The third MIA example is when sellers and importers have – over disclosing that. makes it challenging to determine different companies with common the years – engaged in criminal Crawford notes the NZTA wants what’s a perceived versus a ownership may give rise to high activities including Customs to define a COI as “a situation where material conflict. levels of perceived COIs. for over 30 valuation fraud, odometer winding a person applying to carry out “In our view, a material COI “Common ownership occurs and fraudulent documentation, inspection or certification activities in used imports is when the in several ways, such as two including Japanese deregistration is or could be influenced – or same company is the importer companies holding shares in each certificates.” could be perceived to be at risk of and compliance organisation. other or different companies having In its submission, the MIA cites being influenced – by professional, It’s less clear if they are different a common parent,” says Crawford. other examples as being bringing financial or personal interest in key companies or when common “Horizontal or vertical common in damaged and written-off parts of the entry and certification directors for each company are in ownership between buyers of used years vehicles for repair before on-sale supply chain. A COI includes an the supply chain.” imports, finance companies with without their histories being fully actual, potential or perceived As for perceived conflicts, incentives to ensure they are sold disclosed, importing stolen cars conflict”. the MIA considers the agency’s and compliance companies – in and money laundering. When it comes to material proposed position is confusing any combination – is problematic. It adds there has been cases of conflicts, the MIA wants them to be because it appears to suggest they “At the very least, compliance should never exist. must be undertaken by a neutral It says it’s difficult to define third party with no shared Talk to us today about how we can what a perceived COI is because ownership or common directors.” SHINE SOME it often comes down to what’s in Apart from one member, the add value to your business. the mind of the person claiming MIA stresses it’s largely unaffected one exists, but a key principle is a by the NZTA’s proposals because LIGHT company testing and certifying a they don’t impact on importing ON YOUR product cannot have a financial and complying new vehicles. BUSINESS interest in it. However, from an industry Get AdTorque Edge’s The MIA has come up with three perspective, it says it has been a hypothetical conflicts of interest in “strong advocate of regulatory DESIGN used-imports compliance. intervention to set safety and SERVICE One is when there are common environmental standards, and directors between different create a level playing field”. · Full in-house design team · Digital advertising design companies in the supply chain, but It’s on this basis the MIA · Print design no common ownership. supports the agency wanting to · One team can service all creative For example, if company A clarify operational policy. needs for your campaign · Consistent, compelling creative imports a car and company B Crawford says: “It’s important for across all your marketing channels manages entry compliance and the compliance system’s integrity · Experts in automotive marketing both have one or more common that testers remain independent · Innovative, industry leading concepts · In-house video content editing directors but there’s no other and face no pressure to certify · Automotive website design and connection – such as common vehicles as roadworthy when they development specialists ownership – this would give rise may not be.” to a perceived COI. That’s because He adds it’s important COIs LET’S HAVE A CHAT! directors are responsible for each are managed to maintain public company’s policy and oversee confidence given the used- adtorqueedge.co.nz operational duties. imports industry’s “track record of In the MIA’s view, the perceived exploiting loopholes”. 09 884 4699 Your Motor Insurance PARTNER COI is likely manageable through “This isn’t to say all used proper procedures. importers flaunt the system. This ADTORQUE EDGE “In such a case, the NZTA isn’t the case. But the MIA’s view is should require those companies it’s more likely to occur in the used WEBSITE DESIGN MEDIA PLANNING CREATIVE ANALYTICS CONSULTING CALL ATTRIBUTION REPUTATION MANAGEMENT DIGITAL & DEVELOPMENT & BUYING SERVICES & REPORTING & MODELING & DATABASE MARKETING ADVERTISING to recognise there are perceived sector than new.”. www.protecta.co.nz | [email protected] | 0800 776 832

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www.autofile.co.nz 7 news Tributes to group president embers of the used- in quality improvement and by imports industry in New reforming logistics… we have Zealand – and their promoted a strong globalisation in Mcolleagues and friends in Japan – markets. are mourning the passing of Heiwa “We will continue to expand the Auto Group’s president. used-car export market and the Masatoshi Abe died last month potential of our business through with members of the executive new approaches to form the team of Autohub NZ, a Heiwa- standard of the next generation.” owned company, travelling to his homeland to pay their respects. CONSIDERATE, GENEROUS Abe san will be remembered John Davies’ friendship and business in both countries as a pioneer of relationship with Masatoshi Abe exporting used Japanese vehicles spanned three decades. around the world. He appointed Davies to the His company started as a position of managing director of motorbike shop in 1966 in Osaka’s Autohub NZ, and then president Tennoji ward. But it was in 1992 of Autohub Japan, and the global that he decided to make in-roads group, a few years ago – a great into used exports. honour for a “gaijin” and sign of It started selling vehicles to mutual respect. New Zealand in 1993 before finally What follows is Davies’ personal Masatoshi Abe, former president of Heiwa Auto Group, with John Davies, ex-managing withdrawing from retailing second- director of Autohub NZ. Photo: Brian McCutcheon tribute to the ex-president of Heiwa hand cars in Japan in 1999 because Auto Group. the local market had become and the H3 Joyfit fitness centres. including the president of our saturated. Others cover recycling, elderly whole corporation, Abe san. Your I first met Abe san around 1990. Heiwa Auto has since become care, banking, transport and house presence means a lot to us, to see I was in Japan every few weeks one of the largest players in the auctions. you here on this day.” buying cars for my wholesale and country’s vehicle-export industry. It Abe san was in this country in What follows are his words retail business, and began buying now sells to more than 20 countries January for the official opening taken from the Japanese from Heiwa Auto Co Ltd. including Malaysia, Australia and of Autohub NZ’s new offices in company’s website. At this time, the company was Cyprus, as well as Africa. Hobsonville, Auckland. “Earlier than any other company situated in Nanko, Osaka, and In addition to Autohub and At the event, John Davies, in the trade, we were convinced was previously mainly a domestic Heiwa Auto, the group has diverse former managing director of the used-car export market would supplier. subsidiaries. These include Enhance Autohub NZ, said: “A special thanks expand in the future,” said Abe san. On weekends, I would go to Auto, AutoPortal, Unique Auto to our Japanese guests here today, “Through innovative approaches its storage yard and have a good

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Sepang Express 52 50T 5.6M 25/3 27/3 28/3 29/3 - - - 12/4 14/4 16/4 16/4 Contact: Blain Paterson ph 09 358 5515 Trans Future 5 115 50T 4.6M - 1/4 2/4 6/4 17/4 19/4 21/4 25/4 27/4 29/4 29/4 www.toyofujinz.co.nz May 8 www.autofile.co.nz Grand Pioneer 02 150T 4.8M 10/4 12/4 15/4 16/4 - - - 1/5 3/5 T/S T/S look over my week’s arrivals. It was totally opposite to our competitors’ there that I first met Masatoshi thinking in Japan, whereby they Abe. His job, at that time, involved closeted their services in their own preparing cars on the yard for companies. The rest is history. export. A beer or two in the hot sun Abe san always had foresight soon cemented our relationship. and was always supportive of Over the years, his position staff trialling new ideas. He led by became more senior and encouragement. eventuated in his rise to president At this point in time, Heiwa Auto after the death of his father in the Group has some 22 companies in late 1990s, but he still found time more countries than I know – not for me when I was in Osaka. only supplying cars, but a dining In 2003, I decided to cease arm, elderly care, recycling centres trading in cars and flew to Japan to and Les Mills fitness franchises. He settle our business. wasn’t scared of a challenge. Abe san refused to allow Abe san was considerate, The Provident my departure and asked if I compassionate and extremely gen- could consider retaining a close erous. Staff always shared in the relationship – and think of ways I company’s good fortunes by way could help Heiwa Auto. of bonuses, holiday homes, annual Promise I put my car-dealer hat back trips, sky-diving, Hawaii marathons, on and came up with several use of a luxury boat in Osaka and We don’t make promises we can’t keep. suggestions to help his customers some great parties. This is ours to you. To remain true to our values of in New Zealand, and increase He always trusted my ideas and passion, integrity, competence and commitment. margins and volumes for his supported so many new ventures For the hundreds of dealer businesses that we already company. that were suggested, such as the work with, you’ll know that Provident accountability Abe san and the directors liked acquisition of Penrose Compliance and approved all of my ideas, and forming Autobridge, our dealer goes beyond just doing what is acceptable. Things aren’t and entrusted me to start “Heiwa finance company. always black and white but you can rely on us to do what’s D2D” logistics service, open bank A plan for his succession has right, for your customers and your business. accounts in New Zealand, act for already been formed, which will Our team listen, review, focus to make sure that them in this country and negotiate be announced shortly. This looks Provident products and services meet your business reduced freight rates by pooling robust and sensible, and I foresee needs now, and for the road ahead. Provident products customers’ vehicles together. It no disruption to any of the group’s and services are constantly reviewed to ensure that was a great success and Heiwa services. they are meeting the changing needs of the market. Auto increased market share His death on his birthday at the And because we’re 100% NZ owned and driven, we can exponentially. age of 56 came as a shock to me as adapt and adjust accordingly. In 2006, Abe san asked me to we only caught up for a barbecue form a new company and offer at my house in late January. He will You can be confident that we keep you at the centre of logistics to any exporter. This was be sorely missed. all that we do; through tailored support designed around your specific business needs, nimble thinking, and a commitment to our long term partnership with you.

Being 100% NZ owned and NZ driven, I believe, gives Call to meetings us the edge; we know NZ drivers and what they need to protect their investment on the road. We also VIA (the Imported Motor Vehicle at least 14 days before the AGM understand this market and we listen to your feedback Industry Association) is holding takes place. and work hard to deliver what you tell us is important its annual general meetings later Members with matters to to you and your customers. It’s what we promise to this month. raise at the South Island AGM help keep driving your business forward. The South Island branch’s should email [email protected] meeting takes place on May while those for the North Island You have my word on it. 28. The North Island AGM is meeting need to be sent to being held on May 29 and will [email protected] by Steve Owens, be immediately followed by the May 14. CEO Provident Insurance, NEW ZEALAND. national meeting. Confirmation of venues, times, All members are entitled agendas, minutes and chief to raise proposals or items of executive David Vinsen’s annual business they wish to have report will be made available considered at the meetings. online at www.via.org.nz on May VIA’s rules state these must be 20. Members are urged to make submitted to the branch secretary every effort to attend.

www.autofile.co.nz 9 news Dealerships set for rebranding

well-known name in over the medium term. some older inventory units. Auckland’s used-vehicle “In a market the size of New Hunter said Turners had taken market over the past 30 Zealand, a single-brand strategy over managing BRC from the Ayears will disappear when branches makes a whole lot of sense,” says vendors in September 2017 – a of Buy Right Cars (BRC) are Todd Hunter, the group’s chief year earlier than expected. “We’re relaunched as Turners Cars. executive officer. starting to see the turnaround. The decision, which will cost “It provides opportunity to The earn-out payment to the about $4.5 million to implement, further leverage high levels original owners has been reduced is part of a strategic review of awareness and trust Kiwis accordingly. We remain confident being carried out by the board place in Turners. It will also in growth prospects.” and senior managers at Turners enable marketing and other A retail-investor roadshow Automotive Group. cost synergies.” presentation, published in July All of the group’s divisions are It was back in July 2016 that 2018, reported 34 per cent under scrutiny with emerging Turners announced it would pay revenue growth at BRC with themes being “simplification, de- $15.3m plus stock for BRC with operating profits falling by 21 risking, focus on core capabilities 78 per cent of the purchase per cent. A “closer association” and strengths, and investing price settled in cash and 22 with Turners’ branding was to in capital-efficient growth per cent in Turners Ltd shares. be implemented with three new opportunities”. About $6m of the consideration branches targeted over the next The board of directors expects would be determined by BRC’s two years. to unveil outcomes by the end performance on earn-out At Turners’ AGM in September of June, but its early decision to arrangement over two years. last year, Hunter reported BRC’s rebrand BRC’s 10 branches – nine in At the time, Hunter said BRC acquisition had delivered a step- Auckland, one in Hamilton – aims was expected to contribute up in results for the automotive to create greater shareholder value earnings before interest and tax It will cost about $4.5m to rebrand Buy Right Cars division. By then, two new BRC as Turners Cars sites had opened in Hamilton and Penrose, Auckland. in excess of $4m in the first year On November 27, the NZX with rises expected thereafter. was informed BRC had delivered Turners’ chairman, Grant Baker, lower-than-expected results. Sales added: “We’ve been impressed had risen by nine per cent, margins with what principal and majority had dropped by 20 per cent to an independent choice owner Brandon Orlandini and his about $2,000 per unit. Revenue management team have achieved.” was up by 11 per cent to $32.2m, BRC had “become one of the but operating profit fell by 63 per Quest Insurance offers: largest participants in the Auckland cent to $0.5m, and the Hamilton market, operating from eight sites branch was “performing above Mechanical Breakdown Insurance with a mechanical and import- expectations”. – backed by AA Roadside Assist compliance workshop”. It had Turners’ interim report to Comprehensive Motor Vehicle Insurance originally opened in 1997 with one September 2018, published on – including learner and restricted license cover. yard focusing on used imports. December 21, stated most market Weekly, fortnightly & monthly instalment options now By November 2016, BRC’s headwinds had been felt by BRC available to match your customers pay cycle finance revenues were “growing due to its high proportion of used strongly and delivering excellent imports and mainly operating Guaranteed Asset Protection profits”. in Auckland where demand was Lifestyle Protection Insurance At Turners’ annual general weaker. meeting in September 2017, The company’s updated shareholders were told BRC had guidance of April 19 informed provided new capabilities in shareholders of BRC’s rebranding servicing and maintenance. “It’s – and its one-off, non-cash performing well and we’re starting write-off would be included in to deliver synergies”. The following the group’s results for the 2019 If you are a forward thinking motor vehicle trader, or financier, month, Julian Stone became its financial year. looking for a trusted vehicle insurance partner, call Quest. general manager. Visit www.autofile.co.nz for Turners’ annual report for the an in-depth look back at Turners’ Contact: Simon Moore year ending March 31, 2018, talked ownership of BRC. Turn to page 35 ph. 021 149 2266 about BRC’s “margin compression”, for Hunter’s views on trading e: [email protected] which was particularly the case on conditions.

10 www.autofile.co.nz news Meet Trade Me’s new boss he executive vice-president business in a similar In April 2013, Skoe was of a company running market. I wish him promoted to chief financial officer. three Scandinavian online “It’s a fantastic all the best and look He was then interim CEO for marketplacesT has been unveiled forward to seeing two months from before being as the Trade Me Group’s new chief business with Trade Me continue to appointed on a permanent basis. executive officer. great potential thrive.” “Every day, we help millions of Anders Skoe, who is also to grow” Skoe adds: “It has people buy, sell, hire and get hired,” current CEO of Finn.co in Norway, been an incredibly Nordic states on its website. “Our takes over from Jon Macdonald in – Anders Skoe difficult decision mission is to create perfect matches late July. for me and my through our trusted marketplaces Finn.co is similar to Trade Me in family to leave and innovative solutions.” that it operates across automotive, Finn, Schibsted Before joining Finn, Skoe real estate and employment Skoe’s appointment was and Norway. worked for Google for five classifieds, as well as general items. announced last month after the “But the opportunity to years. He started in 2005 as a It’s owned by Nordic high court cleared the way in mid- lead Trade Me in New Zealand technical account manager, and Marketplaces, of which Skoe is April for Trade Me’s purchase by is a unique opportunity, both implemented and managed executive vice-president, and it Titan AcquisitionCo NZ Ltd. personally and professionally. For AdSense on some of the company’s has similar companies in Sweden Macdonald, who is staying on us, this is an exciting new chapter.” largest partner sites. and Finland – Blocket.se and until Skoe’s arrival, had planned to Skoe became Finn’s CEO in 2016 After two years, he went on to Tori.fi. Nordic’s parent company is leave Trade Me at the end of 2018. and then executive vice-president become technology programme Oslo-based media conglomerate But at the request of the board, of Nordic on January 1, 2019. manager on Google TV building Schibsted. he agreed to stay on while the He joined Finn as head of systems so adverts could go live in “I’m looking forward to moving company went through its scheme business intelligence in 2010. He hours. In 2008, he became partner to New Zealand with my family of arrangement with Titan and to was in that position for two-and-a- technology manager for business and joining the Trade Me team,” ensure a smooth handover. half years. intelligence and AdSense. enthuses Skoe. “I had the pleasure of meeting “It’s a fantastic business with Anders at Finn’s headquarters great potential to grow. It’s in Oslo some time ago,” says particularly exciting to come into Macdonald. this business when it’s going “I’m delighted he’s agreed to through a significant moment in take on the role here, particularly its history with a move back into given his strong experience in private ownership.” leading such a closely comparable Court approves deal A better deal for the The high court made orders last agreement, the ownership change Motor Vehicle Trade month approving the proposed was due to go ahead in early May. scheme of arrangement for Titan Kirk adds: “All of the directors nFlexible credit facility available to fund AcquisitionCo NZ Ltd to buy out have loved being part of Trade Me’s vehicles in transit or on your yard Trade Me. story and they are proud of what’s They constituted the final formal been achieved in the time it has nAccess to stock when you want to buy, step for the takeover to go ahead been listed. not only when you have the available cash after Trade Me’s shareholders voted “We’ll all watch Trade Me’s nFree up your capital and grow in favour of it on April 3. progress with interest. We know it your business Titan will acquire 100 per cent of will stay a key part of Kiwi lives no Trade Me shares for $6.45 per share matter what the ownership.” nOnly available to registered with investors being paid on the Trading in Trade Me shares was motor vehicle traders implementation date of May 8. suspended at the close of trading “We’re pleased the final court on NZX and ASX on May 2 before orders have been made,” says David delisting after the scheme of Kirk, Trade Me’s chairman. “They give arrangement being implemented. certainty to the deal.” Titan is a New Zealand company Unless something unexpected owned by Apax IX Fund, a fund Ph: 09 320 5646 was to happen under the protective advised by UK-based private-equity Contact us now to find out more www.autobridge.co.nz provisions of the implementation firm Apax Partners.

www.autofile.co.nz 11 news

Sport scoops top gong IN BRIEF t

he Suzuki Swift Sport has past two years,” says Gary Collins, Association points out ships go where there’s cargo been crowned supreme general manager of automobile The NZ Shipping Federation has objected to any future plan that would winner at the AMI NZ marketing for Suzuki NZ. see Port of Auckland’s operations being shifted to Northport. AutocarT Car of the Year Awards. “This is an unusually high level Annabel Young, executive director, says: “Any attempt to force cargo The popular five-door variant when most new-car buyers now to, from or via a particular port must lead to questions about whether saw off other class winners after opt for automatic or continuously this is to be mandatory or subsidy-driven. Natural flows will be based on more than 130 vehicles were tested. variable automatic transmissions.” population and production. The Sport won the category for Kyle Cassidy, chief judge, says “The Auckland Future Port study found 70 per cent of cargo coming performance vehicle and was then the scoring system was weighted into the Waitemata was bound for the city, usually South Auckland. rated the best finalist. towards a vehicle’s particular Distance from point of origin to port, or from port to point of sale, is an The Sport derivative of the Swift strengths so a supermini could important factor.” has long been a popular seller, but fairly be compared with a six-figure The federation has made its views known during the consultation the arrival of the new turbocharged luxury contender. He describes the process of the government’s Upper North Island Supply Chain Strategy. version last year resulted in a boost Swift Sport as a “mild-mannered This includes a feasibility study on whether a shift in port operations, in demand. commuter” in the city with a which would see car imports relocated first, is possible, as reported in In 2017, it accounted for 15.1 turbocharged engine balancing fuel the April issue of Autofile. per cent of new Swifts sold in economy with ease of driving. New Zealand. The introduction of The AMI NZ Autocar Car of Electric car ‘world’s best’ as marque land treble the 1.4-litre turbo version in 2018 the Year class winners were the The all-electric Jaguar resulted in the Sport capturing 32.9 Seat Ibiza – less than $30,000 I-PACE completed an per cent of Swift sales in 2018. category, Kia’s Niro PHEV – $30,000- historic hat-trick at “Keen and enthusiastic drivers $45,000, Subaru Forester Premium the 2019 World Car have special enthusiasm for the – $45,000-$60,000, Mazda CX-8 Awards. It won the Swift Sport with almost one-in-three Limited – $60,000-$100,000, Suzuki coveted overall title, buyers in this country choosing the Swift Sport – performance, Porsche and the awards for manual gearbox version over the Cayenne S – luxury. green car and vehicle design. The I-PACE, pictured, is the first model to win three world car titles in Keep up to date with the the awards’ 15-year history. Its latest, at the New York International Auto Show, came after it was named European car of the year. It has a 90kWh lithium-ion battery and delivers a range of up latest auto industry news to 470km. Range-optimising technologies include a battery pre- conditioning system. When plugged in, the I-PACE automatically adjusts FREE to your inbox the battery to maximise range before setting off. Designed and developed in the UK, more than 11,000 units have been sold in about 60 countries. McLaren’s 720S took out world performance car, the urban car award went to Suzuki’s Jimny and Audi’s A7 was world luxury car. Visit www. autofile.co.nz for more news and galleries from the Big Apple. Translation of model’s name raising eyebrows A German marque has put its dealers across the border on a sticky wicket thanks to the name of its electric car. Étron, in French, doesn’t quite signify electric power, sex appeal or innovation – it’s more closely associated with excretion. Thus Audi’s e-tron may come in for some toilet humour from francophones globally, especially as the pronunciation of the car’s name and “turd” are virtually the same. It describes the e-tron in promotional material as “the only electric The top stories sent directly to you SUV built with Audi DNA”, adding “this is electric done the Audi way”. twice a week Focus on mobility into the future at Tokyo show Technology will be high on the agenda at the 46th edition of the Japanese automotive industry’s biggest event. An “open future” is the theme for Tokyo Motor Show, which runs from October 24 to November 4. It will explore what future mobility may look INSIGHTBY and “applied technologies that could feature”. The event will be staged at sign up at www.AUTOFILE.co.nz/SUBSCRIBE Tokyo Big Sight, and venues in the city’s Odaiba area.

12 www.autofile.co.nz news

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www.autofile.co.nz 13 EV focus Expanding mobility and horizons

any people still believe Vehicle-use changes after pure EV purchase “I have a very different attitude owning an electric 90% about this car,” said one. vehicle (EV) would “I want the EV to be a 80% Mseverely restrict their travel. communal car for the family living In fact, a Flip The Fleet survey 70% here,” another reported. “Everyone last year found that only around 60% is free to use it when I don’t need five per cent of owners travel it. Limiting carbon is the aim, fewer kilometres overall in their EV 50% so sharing the EV rather than than in their internal combustion 40% other family members driving vehicle (ICV). The majority went their hybrid or petrol cars makes 30% even further since owning an environmental sense.” electric car. 20% Some BEV owners even want For most adopters, acquiring to share the love beyond their 10% an EV triggered little difference in own families. One owner picks up their transport patterns. Sixty- 0% hitch-hikers and takes them closer More long trips Fewer long More km in Fewer km in Now visit No longer visit two per cent of 474 owners who to their destinations. trips BEV BEV new places some places responded to the survey reported Another encourages friends their transport habits either hadn’t BEV only BEV+ICV with just a BEV to borrow their changed, or had only changed a The sample is divided into families and businesses with only battery electric remaining ICV when it’s needed little, since buying an EV. vehicles (BEVs), shown by the green bars, and those who continued to own for towing or long trips. It’s all part Those who made the switch both an internal combustion vehicle (ICV) and a BEV (blue bars). Data for of being part being in the “EV glee adjusted their overall mobility plug-in hybrids are excluded because of the small sample size. The bars show club”. in subtle ways. About five per the five and 95 per cent uncertainty interval around the mean Among all this good cent of the owners with only a community news, there is one battery electric vehicle (BEV) rent EV or ICV for whatever journey is One respondent put it this worry – some EV adopters are in a car more often than previously coming up that day. way: “EVs bring family and friends danger of becoming front-seat – presumably for occasional Those with just a BEV make closer together. The cheap potatoes. long trips needing an internal the greatest adjustment of running costs and enjoyable About one-fifth of owners with combustion vehicle (ICV). their movement patterns when driving experience mean I’m more just a BEV report they now walk or Between three and four per they ditch their ICV – more likely to volunteer to pick up and bike less than previously, probably cent of EV adopters fly less than than one-quarter of them stop drop off other people’s kids. EV in part because of the pleasure previously. Perhaps buying their visiting some places they used to ownership has made me more and low cost of driving. There EV coincided with a change in frequent and about 10 per cent likely to help people.” was no evidence EV adopters use lifestyle and sticking closer to find new haunts. People with just A pensioner reported the one- public transport. home? Certainly, I’m one of many a PHEV at home don’t need to hour trip to Wellington to visit a One respondent summed this retirees who have gone electric adjust at all. new grand-daughter used to cost all up with “EV ownership sets to reduce costs, but some report The survey shows how easily at least $20 in an ICV. “Now I visit me free”. Electric cars are not only flying less because owning an EV EVs fit into most families’ lives. when I want.” expanding mobility for some has made them more conscious of They are ideal for short trips Children of electric-car owners people, they’re also bringing the environmental costs of planes. from home to work, school, also benefit. “I’m more likely to us closer together. Having Eighteen per cent of Flip The sporting venues and shops. For take my son directly to football more access to affordable EVs is Fleet participants own just a the majority, BEVs have the range – and without grumbling about important for making a better BEV, while only three per cent they need for everyday use. his inability to arrange a lift or car- living, but also for living better. own just a plug-in hybrid (PHEV). But here’s the bonus – people pooling,” said another parent. Therefore, a whopping 79 per cent are kinder to their family and wider Some BEV owners even want to Henrik Moller is a retired sustainability scientist. Additional research by Daniel Myall can choose between taking an community after going electric. share beyond their own families. and Dima Ivanov. Visit www.flipthefleet.org.

Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price listed on Trade Me last month: for the month: Eye on EVs +4.4% +53.9% +10.1% +30.2% +4.5% +18.8% • Nissan Leaf • Hyundai IONIQ $24k • Nissan e-NV200 • Mitsubishi Compared to Compared to Compared to Compared to Compared to Compared to • BMW i3 Outlander last month prior year last month prior year last month prior year * Figures as per the end of April 2019

14 www.autofile.co.nz EV focus China drives global growth orldwide sales of fully procedures were introduced in China was top with a market registrations jumped by 107 per cent. electric vehicles (EVs) September. share of 4.3 per cent. All other This compared to rises of 58 and plug-in hybrids European growth of 34 per cent jurisdictions with more than one per cent in China, 35 per cent in (PHEVs)W topped 2.1 million last year in 2018 was held back by tight EV million total sales came in at Germany, 33 per cent in the UK – a jump of 64 per cent compared inventories and long waiting lists around two per cent. and 28 per cent in Australia on the to 2017. for popular pure-electric models. EV-volumes.com connects the same month in 2018. Their share of the light-vehicle Sales in the US jumped by loss of electric sales in Japan to As for February’s global sales market went as high as 3.8 per 79 per cent with the Model 3 Toyota’s Prius Plug-in, which it result, that came in at 114,250 cent in December and came in contributing 138,000 units. reports as having been in decline units, including light commercials at 2.2 per cent for the whole year Deliveries were limited to North since the arrival of the second- and 300 fuel-cell vehicles – 35 per with a 69-31 per cent split in America for six months, but the generation Nissan Leaf in late 2017. cent above the same month of favour of EVs. Tesla was still 2018’s best-selling Excluding the Prius, the last year. The figures, published by fully electric model. country’s electric uptake increased Total EVs by region Sweden-based database EV- Registrations outside China, by 38 per cent as the Leaf and Northland 409 volumes.com, include passenger Europe and the US totalled 150,000 Mitsubishi’s Outlander gained most Auckland 5,716 cars, light trucks in the US and for a 39 per cent increase. Uptake registrations. Waikato 663 Canada, and light commercials in dropped in Japan, but other By the end of 2018, the global Bay of Plenty 433 Europe and China. markets – such as Canada and fleet of EVs was 5.4m light vehicles. Hawkes Bay 213 Pure EVs have gained three per South Korea – expanded faster Medium and heavy commercials Gisborne 42 cent market share since 2017 – than average. added 600,000 units to the global Taranaki 171 primarily driven by sales in China Smaller markets are still leading stock with 120,000 deliveries. Manawatu/Wanganui 405 increasing by more than 500,000 EV adoption. Norway topped the Some 3.2m sales of light Wellington 1,866 units to 1.2m. ladder for market share with 40 EVs and 140,000 heavy EVs are Nelson/Marlborough 452 Other factors to impact on per cent of new cars sold being anticipated for this year. Canterbury 1,937 global EV sales have been the electric. Iceland was second with Comparing New Zealand to West Coast 14 arrival of Tesla’s Model 3 and PHEV 17.5 per cent and Sweden third on other countries, demand for EVs Otago 768 demand in Europe dropping back 7.2 per cent. continues to be strong. Southland 95 when new fuel-economy test Among the larger economies, In February, for example, Kiwi Source: Ministry of Transport, April 8, 2019

EVEV percentage percentage share share of registrations registrations EVEV fleetfleet size size 2017 2017-2019-2019 2.50% 14000 Used light plug-in hybrid New light plug-in hybrid 2.25% 12600 Used light pure electric New light pure electric

2.00% 11200

1.75% 9800

1.50% 8400

1.25% 7000

1.00% 5600

0.75% 4200

0.50% 2800

0.25% 1400

0.00% 0 Jul Jul Jul Jul Jul Oct Apr Oct Apr Jun Jun Mar Mar Mar Mar Mar Feb Feb Feb Aug Sep Nov Aug Sep Nov Dec Dec Mar Mar Mar Mar Sep Nov Nov Nov Sep May May May Sept Jan 2017 Jan 2018 Jan 2019 Jan Jan 2016 Jan 2017 2018 Jan Jan 2019

Source: MoT, April 8, 2019

Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price listed on Trade Me last month: for the month: Eye on EVs +4.4% +53.9% +10.1% +30.2% +4.5% +18.8% • Nissan Leaf • Hyundai IONIQ $24k • Nissan e-NV200 • Mitsubishi Compared to Compared to Compared to Compared to Compared to Compared to • BMW i3 Outlander last month prior year last month prior year last month prior year * Figures as per the end of April 2019

www.autofile.co.nz 15 new cars First for space technology ston Martin has 003 is the size of the cockpit, unveiled the design with greater concessions to concept for the AM- usability and comfort. ARB 003 – its last mid-engined The concept boasts hypercar following the Valkyrie LMP1-style doors, which open and Valkyrie AMR Pro. forwards taking a section of Previously known as Project roof with them so getting in 003, it will benefit from Red and out is easier. Bull Advanced Technologies Full details have yet to be being involved in its design and announced, but the AM-RB 003 engineering. The AM-RB 003 concept will be the first car to receive The AM-RB 003 will the marque’s hybrid-turbo incorporate concepts and and developed by Michigan-based Turbulence and the associated V6 engine. technologies taken directly from FlexSys – has been validated by drag increase found in current Complementing the power unit Formula One with production NASA through performance and active-wing designs is virtually will be a Nexcel sealed oil system. limited to 500 coupes worldwide. acoustic flight testing, with Aston eliminated too. This facilitates changes in less than It features a pronounced front Martin claiming to be the first The production design will 90 seconds, and refines and reuses keel and large rear diffuser with company to implement aerospace allow for larger leading and trailing the engine oil. the underfloor generating the methods in the automotive industry. edge deflections than shown in The system was first used in bulk of the downforce, and will The system allows for the concept, and will incorporate Aston Martin’s track-only Vulcan benefit from next-generation downforce to be altered without increased actuation rates to allow and was subjected to numerous aircraft morphing technology to changing the physical angle of the a real-time response to changes in Nürburgring 24-hour campaigns create a variable airfoil across the element for high performance, the dynamic state. to prove its credentials. Its use on rear wing. improved efficiency and reduced One of the biggest differences the AM-RB 003 will be the first for a The technology – called FlexFoil wind noise. between the Valkyrie and AM-RB road-going vehicle globally. Core crossover model VEHICLES WANTED azda has unveiled its lifestyle requirements,” he says. new-generation line- “Its styling and features, along DEALERS BUYING NOW up through the CX-30 with the Skyactiv-X engine, will Mcompact SUV. enhance its appeal.” As a core model, it will be rolled Performance attributes, such as out globally with sales starting in accelerating, turning and braking, VEHICLES WANTED Europe in the middle of this year. have been improved. All Audi, Porsche, Jaguar, Land Rover and Volvo Models The crossover combines SUV The marque’s Skyactiv proportions with styling from architecture enables people to the marque’s Kodo2 design make the most of their natural language. The side-view highlight sense of balance and the latest

Jeff Dacombe . 021 532 355 . jeff[email protected] is “reflections sliding over the engines, including Skyactiv-X, undulating body surface”. allow responsive speed control in David Hodge, managing any driving situation. director of Mazda NZ, believes User-friendly packaging and LATE MODEL FORDS & MAZDAS WANTED it will be a welcome addition to a cabin that seats four adults the CX range and prove popular mean customers can enjoy trips with Kiwis. anywhere. The CX-30, which “Having the CX-30 will enable has been designed to be easy us to be in a position to provide to drive with increased height New Zealanders with the option of for better visibility, will be made Call Jason Robb selecting a at key Mazda plants Ph 0274 133 222 CX to worldwide. meet To advertise here, contact: [email protected] or ph 021 455 775 The 2019 Mazda CX-30 16 www.autofile.co.nz new cars Safety built in mind across range

he all-new RAV4 offers provides more powerful hill- Toyota’s RAV4 Limited an advanced safety climbing performance. package across its eight- The new model, which went variantT range. on sale in April, can also coach the The line-up boasts dynamic- driver towards better fuel economy, radar cruise control, a pre-collision while the four driving modes are EV system with autonomous in the hybrid, normal, eco and sport. emergency braking including A new 2.5-litre, four-cylinder pedestrian and daylight cyclist engine provides 152kW of power detection, road-sign and lane- and 243Nm of torque in all- tracing assist, and automatic wheel-drive (AWD) petrol variants high beam. combined with an eight-speed Other safety technologies automatic transmission. There’s include blind-spot monitoring, safety technology in their vehicle if option on models by 2025. also a new two-litre petrol engine rear cross-traffic alerts, reversing they need it.” The hybrid RAV4 has a linear and direct-shift CVT combination. camera, front and rear parking For the first time in New acceleration feel thanks to At entry level are the front- sensors, and seven airbags. Zealand, Toyota is offering a self- distributing more driving force wheel-drive 127kW and 203Nm “Advanced safety technology charging hybrid-electric RAV4 to the rear wheels via a newly two-litre petrol variants offered in shouldn’t only be available on the in three grades with its 155kW developed E-Four system. This GX, GXL and Limited grades. top grades,” says Neeraj Lala, Toyota 2.5-litre petrol-electric powertrain assists in suppressing front-wheel The top-of-the-line Adventure NZ’s general manager of product mated to an electronically slip during off-the-line starts. AWD is powered by the 2.5-litre and new-vehicle sales. controlled CVT. The system also helps reduce petrol engine and uses a Toyota-first “Customers want to know they This continues a power switch understeer during cornering for dynamic torque-vectoring AWD can have adventurous fun with the across the marque’s range, which enhanced steering stability. Off- system. This powerplant is also peace of mind they have the best is expected to offer an electrified road, increased rear-wheel torque available in the non-hybrid GXL. Focus on interior Vehicles wanted olvo says XC90. Cross-traffic alert it’s breaking technology also offers away from the autobrake and the Volkswagen Vindustry assumption that safety cage forms the cars need an exterior core of passive safety facelift every three or technology. Toyota four years during its Coby Duggan, model lifecycle. general manager of Mercedes Benz With the XC90, Volvo NZ, says the SUV the marque is instead has consistently been focusing on refreshing one of the company’s Nissan its flagship mainly on the most popular models. The Volvo XC90 inside while giving its “The refreshed XC90 exterior new wheels, colours and a offers Volvo’s most advanced suite of Skoda new grille. safety and user-interface technology, In terms of active technology, while the versatility it has become the seven-seater comes with renowned for will continue,” he adds. Lexus the city safety and blind-spot The new model will be available information system. here during the third quarter of Kia The marque says city safety with 2019 with pricing to be confirmed autobrake is still the only system on closer to launch. We are always looking to purchase late model the market to recognise pedestrians, cyclists and large animals. NZ New cars aNd commercials The oncoming lane- mitigation system, first introduced on miles motor group the XC60, is now available on the Paul Curin 0274 333 303 [email protected]

www.autofile.co.nz 17 newslooking back The month that was... May

May 27, 2005 May 24, 1999 Recalls code on the table Car fairs ‘illegal’ after ruling A draft agreement regulating the responses of new- The Motor Vehicle Dealers’ Institute (MVDI) was vehicle distributors to overseas recalls had been about to turn its attention to car fairs in the wake of prepared by the Motor Industry Association (MIA) a high-court decision effectively denouncing park- and was to be put to a council meeting. and-sell operations as illegal. Chief executive officer Perry Kerr said if the The judgement declared that when a vehicle-selling proposed agreement was adopted, marques would operation went beyond a tenant-landlord situation, a pay for repairs to all vehicles under seven years of breach of the Motor Vehicle Dealers’ Act occurred. age – whether used imports or New Zealand-new. Steve Downes, executive director of the MVDI, said this meant This was in line with the MIA’s campaign for a ban on imports older than offering ancillary services – such as as holding keys, assisting in sales, seven years. taking prospective buyers for test drives, arranging finance and offering “The thrust of the code is all recalled vehicles will be repaired,” Kerr said. mechanical assessments on-site – were activities that made an unlicensed “It’s just a question of who pays. Under this agreement, if the vehicle is under business a car-sales yard. seven years of age, the manufacturer will pick up the cost. If it’s older, it’s back Since the decision was made public, the institute had been contacting on the importer.” park-and-sell operators to ensure they were aware of the judgement’s He added the agreement would only apply to safety-related recalls in ramifications. It also believed tender centres and car fairs were affected by which the distributor had the manufacturer’s support, and only to vehicles the ruling. imported before the call-back was announced. Downes said if fair operators kept to the tenant-landlord provisions In some cases, the manufacturer would supply parts only. In those there would be no problems. incidences, owners would still be up for the cost of labour, but could claim that But as most also offered ancillary services, they would fall under the back from the importer, which all along had full legal responsibility, Kerr said. ambit of the court decision and would feel the full force of the MVDI’s wrath.

May 25, 2007 May 7, 2004 Fuel tax to sting industry Rally confirmed with some changes Regional fuel taxes would benefit all road users, said The Motor Industry Association (MIA) officially Annette King, Minister of Transport, but the transport confirmed the second running of the Energywise industry was unconvinced. Rally with some changes. The government outlined plans in May’s budget The event proposed for November 1-4 to let regions introduce petrol taxes of up to 10 cents had support from the Energy Efficiency and a litre for the road and public-transport projects. Conservation Authority, Gull Petroleum and the AA. Tony Friedlander, chief executive of the Road Perry Kerr, chief executive officer of the MIA, said Transport Forum, said it was “lunacy” to expect the trucking industry to fuel was going to become more important to consumers in the near future. fund passenger transport through the new tax and a 10c diesel tax would “We’re moving into an era in which the price of fuel is going to be push up freight costs by 1.4 per cent. a more important factor in our daily lives,” he said. “This will not only But King believed her proposal would benefit all road users, not just influence buyers’ choice of vehicles, but will also bring fuel-saving driving owners of private vehicles and commuters using public transport. practices into greater focus. “By enabling a regional fuel tax for petrol and diesel users, we can “The new-car industry, with every new model that’s launched, ensure all road users contribute to new roading and public-transport continues to make advances in fuel efficiency and lower emissions at the infrastructure to support our transport vision,” she said. same time as enhancing performance, safety and driving pleasure. “Furthermore, an increasing number of private vehicles are diesel- “This event gives us the opportunity to demonstrate this to the public. powered. To not charge diesel users would mean petrol users are We propose to add a new dimension focusing on driver skill in achieving subsidising them.” King added transport operators using diesel vehicles maximum economy irrespective of the vehicle’s ultimate capability.” off-road would have their tax refunded. The rally would also reward drivers surpassing official ADR figures.

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18 www.autofile.co.nz news Agency chairman ‘jumps ship’

eadlines on two press Dangerfield, then departing. clearing 850 open compliance operators breaking the rules and releases – the second Making his “exit left stage”, cases and improving its internal compromising safety we’ll hold issued just six working Stiassny said: “The time is right for processes. them to account.” daysH after the first – perhaps a new chairman and permanent It added Patena was its The review saw around 300 sum up concerns the automotive CEO to guide culture change in new general manager leading enforcement actions taken against industry has of the NZTA. the agency to ensure public safety regulatory function having taken service providers, drivers and On April 18, the agency is at the heart of its function.” over from law firm Meredith transport-service operators for extorted “stabilisation phase His resignation came six Connell, which was appointed failing to reach required standards. completed” with Kane Patena months after revelations the NZTA to help lead that department by Actions ranged from formal installed as new general manager hadn’t been properly checking up Stiassny in October 2018. warnings to revoking rights to for compliance function. on companies certifying vehicle Brett Gliddon, the NZTA’s operate. On April 26, the regulator acting chief executive officer, said The agency’s regulatory revealed “board Patena was to continue responsibilities include 390,000 chairman announces implementing a “best- class two to five heavy-vehicle resignation” with practice regulatory licence holders, 45,000 transport- Michael Stiassny model prioritising safety”. service licences, course providers, saying his job was “Our new firm, but fair, more than 8,300 inspectors done, and it was time for a new approach to compliance ensures working at about 3,500 inspecting permanent chief executive officer safety and giving out licences. those responsible for certifying organisations and a fleet of more and chairman to change NZTA The scandal led to Fergus vehicles and running commercial- than 4.3 million vehicles. culture. Gammie quitting as CEO in transport services do the right The automotive industry, Minister of Transport, Phil December. thing and comply with the rules,” stunned by failings at the NZTA, is Twyford, who appointed Stiassny, “The regulatory compliance said Gliddon. holding its breath on what could thanked him for his “exceptional” review is now complete, more “The majority do a great job, possibly happen next. service. “Michael has worked than 300 regulatory compliance but when we find evidence of Darren Risby, editor tirelessly to not only uncover but enforcement actions have been to resolve issues, particularly in taken and recommendations of relation to systemic failure in the the independent inquiry report NEED YOUR CAR OR TRUCK MOVED? agency”. are almost fully implemented,” Transport Logistics – Specialists in Inter-Island Transportation If the minister thought he said Stiassny last month.. could avoid a political dogfight, “General managers have he must have been dreaming. been appointed for two new key He simply opened the door for functions – regulatory and safety, the opposition’s spokesman for and health and environment. transport to claim the regulator “These are cornerstones of was “in a state of internal chaos”. a new approach, the results of “It’s telling Stiassny’s jumping which will continue to play out in ship only one year into a three- months and years to come.” year contract and goes to show Bizarrely, at 1pm on April how deep the rot is within NZTA at 30, Stiassny was still listed as the moment,” said Paul Goldsmith. chairman of the board on the “Twyford’s mishandling of agency’s website. transport has been substantial. To So job well done, according to lose a chief executive officer and a Twyford, who said as a result of freshly appointed chairman within Stiassny’s leadership over the past a year is incompetent.” year, “New Zealanders can have SHIP. RAIL. ROAD. Not that National covered itself confidence the agency is fully in glory considering it oversaw the focused on ensuring public safety TAILORED SOLUTIONS TO BRING YOU THE BEST PRICE NZTA for the nine years it was in on our roads”. PORT-TO-PORT – DOOR-TO-DOOR government. Not quite, said Goldsmith, That period saw the agency’s who remarked the departure was Please contact us: Auckland office seismic and berated shift from announced on a Friday afternoon, Tina Boatwright 029 525 8950 regulation to education, the which is when governments try to email: [email protected] loss of institutional knowledge bury “bad news”. Christchurch office with experienced staff members However, it was only a week Louise O’connell 03 374 5716 email: [email protected] walking or being shown the door, earlier the NZTA announced it and other failings culminating had completed the first phase of in its former boss, Geoff its regulatory compliance review,

www.autofile.co.nz 19 Take action with ageing stock

on’t just slash prices point. The majority of Facebook page or set a display at your dealership. on aged stock. Take dealers seem to take budget for pay-per-click Whatever it is that you choose action and see if you can action based on time advertising through to do, it will likely be significantly Dincrease interest and hopefully rather than any hard industry solutions, such cheaper than ripping thousands off convert it into sales before data that paints a as AdConnect. This the sticker price as your first go-to. impacting bottom-line profits. picture. covers Facebook and Spending a little to retain a lot After asking the question Before eroding Google Advertising is the best approach to protecting recently of a number of dealers profits, it pays to review across your most likely profitability on older stock vehicles. – and observing what seems to the vehicle listing to see MARK GREENFIELD customers. Be proactive and look for ways be common practice across the if there is any apparent Motorcentral  It may mean investing to generate interest over the next industry as the “go to” strategy reason it hasn’t sold yet. in raising the visibility of the few weeks before addressing any for dealing with aged stock – the Also, review the car itself to see listing on websites such as price issues. answer was to slash at least $1,000 if there’s something wrong with it Trade Me or Need A Car, or If your price is way out of touch off the window price to hopefully that will put prospective buyers off other platforms with options with the market, then it will be stimulate some buyer motivation. once they have test-driven it, and that increase the profile of the more difficult. However, if the price In reality, however, this is an so on. listing and potential audience – is right – as it generally is – then do assumptive action that directly It’s better still if you can also for example, super featuring or what you can to retain bottom-line impacts the bottom line, and report on vehicle-activity history highlighting. profits. is usually done with little or and views online because this will  It could mean actively looking A good way to do this is by generally no effort into finding provide a greater level of insight across the past customer putting in place a policy and other ways to attract some as to how the car has performed opportunities that the car may process within the dealership attention on cars that have gone to date. suit, whereby you send people around aged stock. quiet on the interest front. Then, if all that checks out, texts with the vehicle link from Firstly, it could be defining what Old stock can be defined in look at what your options are to your website. aged stock is to your dealership different ways – whether it be in promote the vehicle on alternative  Another idea is placing an and, secondly, what the process days, months or a lack of views cost-effective mediums if you incentive on the car within the is around being proactive with a online. haven’t done so already. There are a sales team. vehicle once it reaches that point. What really matters is what range of options open to dealers.  The vehicle could be Putting some thought and you do with it when it gets to that  Promote the car on your positioned better when it is on effort into this area can potentially save your dealership tens of thousands of dollars over the course of the year. The dealer solutions team “Spending a at Motorcentral has plenty of ways it can help with this little to retain profit-protecting area of your business – from reporting a lot is the with data insights, through to cost-effective actions best approach you can take to increase the probability of getting to protecting vehicles sold. If you want to have a profitability” chat, you can email the Whatever positive action dealers take to sell older stock, it will likely team at dealersolutions@ be cheaper than slashing thousands of dollars off sticker prices motorcentral.co.nz.

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20 www.autofile.co.nz news Take action with ageing stock Innovation key to success

he new owners of market without a multi-national Autotrader.co.nz say corporation’s restrictions. a fresh website and “We’re excited to be at the reins mobileT platform that will deliver of a business with great history, a results is their top priority. strong presence in the market and Ross Logue and Richard solid growth potential. East, senior members of the “With further investments in sales team, have acquired development and technology, we’re the site and magazine from committed to delivering the great publisher Bauer Media product offering and value-added The Autotrader team. Back row from left, Richard East, Ross Logue following a management buy- and Cameron Coe; front row, Meila Wilson and Jordan Ashford customer support that’s made out. They assumed full control Autotrader.co.nz and its magazine of the operation on April 18 and opportunities with the brand being about from this investment.” New Zealand’s number-one are now running it under their stuck under a big media company Logue and East will take the automotive-only classifieds outlet.” new company Autotrader Media. for so many years.” existing Autotrader team with Terry King, general manager “Innovation is the key”, says As for the magazine, Logue them to new offices in Grey Lynn, of publishing motoring at Bauer Logue of their plans for the future, says it continues to produce Auckland, on June 3. Media, says: “We’re thrilled to have adding the chance to buy was too fortnightly results for car dealers “The team is young and really delivered it into the capable hands good to pass up. so it will carry on. excited to be a part of a dynamic of two people who know the He told Autofile: “After working “We’ve increased the company,” enthuses Logue. “There product so well. in the business for more than 12 distribution locations around will be opportunities to grow it in “Ross and Richard’s years between us, we couldn’t turn Auckland since taking over. There the future. understanding of the brand – and down the opportunity to make has been an increase of up to 40 “It’s business as usual, but it its significance in the market – will Autotrader a Kiwi-owned business per cent in some areas, so we’re will be better. We have the same help them grow the business in again. We saw some missed excited to see what results come team, same clients and same years ahead.”

www.autofile.co.nz 21 tech report Bigger may not always be better

have this recurring idea, which single “impact rating” suv-jle.pdf, suggests PROBLEM ILLUSTRATED regular readers of my column for vehicles. This would replacing all SUVs and One obvious place to start making are probably aware of. It’s my be calculated from two utes with lighter cars this happen is to make space in Iview we should turn our definition primary data points, could have a similar our fleet for lighter vehicles. of safety on its head and define a potential for causing effect on fleet safety as Most countries now have a safe vehicle as one that minimises harm and efficiency seatbelts. vehicle class for quadricycles harm to others. – both inversely Of course, some of and heavy quadricycles – smaller This is opposed to the current proportional to mass. the benefits could also vehicles that exist somewhere view of safety, which says a safe With that said, this KIT WILKERSON be seen by increasing between a motorbike and car. Policy adviser and analyst vehicle is one that keeps its own article isn’t intended to [email protected] the mass of all cars in Objections to this type of occupants safe. be another exposition the fleet. However, that vehicle in New Zealand have been My logic is simple – the primary on my logic. Instead, I would not only increase based solely on the fact that they factor leading to the chance of a wanted to share some research the risk to vulnerable road users, would fare poorly in a collision fatality in a multi-car collision is that supports such an argument. but also decrease the efficiency of with a heavier vehicle – in other the difference in mass between the fleet by increasing emissions. words, they’re considered less safe the vehicles. RECENT FINDINGS Larger vehicles also use more even though they are less likely Reducing the difference in mass The only possible end-state of space, taking up more land in car to cause harm and produce less between vehicles in the fleet will the current system, one in which parks and on roads. emissions. reduce the likelihood of fatalities in occupant safety is promoted above Another report out of Norway – This illustrates the problem multi-vehicle accidents, especially all else, is an arms race. An arms http://sciencenordic.com/heavier- with the current system. The when secondary safety systems, race that will drive up the mass of cars-can-make-traffic-more- vehicles considered the safest will such as airbags, are present. vehicles. dangerous – concludes “larger be the least efficient and the most Lighter or lower-mass vehicles This isn’t hypothetical. This is a and heavier cars are the safest for efficient will be the least safe, are also less likely to cause fatalities fact that may be seen occurring. those riding in them, but less for so how can we possibly achieve in incidents involving more The mass of the average new others. The largest and heaviest car both? Efforts to promote one vulnerable road users, such as vehicle sold in the EU has increased usually has the greatest potential necessarily detract from the other. pedestrians and cyclists. by 10 per cent in for injuring others Look at it this way. In the Unlike current safety-rating the past 20 years. In in traffic”. current system, people who want systems, one based on mass would New Zealand, SUVs The report to drive vehicles that would cause let us consider vehicle efficiency and utes now make “A lighter fleet continues by less harm are prevented from and, hence, the harm cause by up more than 65 will result in explaining that doing so, whereas those driving vehicle emissions as part of a single per cent of sales of if everyone were massive vehicles that are more rating system. new cars. less fatalities to buy cars with likely to crush other road users Manufacturers are always Research out and harm” the greatest and pollute are rewarded for going to try to sell the biggest and of the US suggests protection, the having a “safe” vehicle. most accessory-packed vehicles. more people are killed because of road toll would rise because the The evidence is there that Their easiest sell will be vehicles SUVs and light trucks. In fact, this “safest” cars are usually those that a lighter fleet will result in less that are going to protect their is quantified by estimating that have the greatest potential for fatalities and harm. From collisions occupants best. for every “one million light trucks injuring others. and emissions, both have an The government, if it has a that replace cars, between 34 The Norwegian report almost equal impact on the “New duty to promote one vehicle over and 93 additional car occupants, concludes that, correspondingly, Zealand Inc” bottom line. another, should be using a system- pedestrians, bicyclists or the total number of traffic deaths Sometimes, when a solution is based approach to safety – one motorcyclists are killed per year”. and injuries would decrease if cars hard to find, it makes more sense that promotes the least risk to the The same research, which were lighter on average. There’s no to fix the questions rather than general public. can be found online at https:// reason the same shouldn’t be true continuing to double-down on We would, therefore, need a econweb.ucsd.edu/~miwhite/ in New Zealand as well. failed solutions.

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22 www.autofile.co.nz Tackling challenges in transport

broad range of experts conversation at T-Tech alongside an have come together to incredible panel of technology and discuss transport issues of mobility experts.” Athe future at a two-day conference. “Technology is changing David Vinsen, chairman of Speakers and delegates at T-Tech every aspect of our lives ” ITSNZ, says: “Our country is 2019 explored a range of subjects, often viewed internationally as a such as emerging solutions set to – Dr Michelle Dickinson leader in innovation. We stand to transform transport and how to benefit as a country, socially and make our cities more liveable. economically, by being prepared The event in Christchurch migration, congestion, disruptive micromobility. He also organises for changes coming by clever was co-ordinated by Intelligent technologies and climate change, summits in Europe and the US development of innovations here, Transport Systems New Zealand and explored solutions to help that explore the global disruption by better use of data quality and by (ITSNZ). transport to evolve. of scooters, e-bikes and shared being informed on how to get the After rebranding as T-Tech last “T-Tech is a vital forum for vehicles weighing less than 500kg. best from solutions in transport.” year, ITSNZ’s 14th annual conference decision-makers and planners Dickinson aims to encourage The programme for day one included insights on disruptive to learn of emerging trends and environmentally sustainable living included a look at transformative mobility solutions and business innovations, and to explore their through engineering design, and transport modes, which models, autonomous vehicles, value to our country.” led a discussion on opportunities was followed by papers and mobility as a service, drones Acclaimed nanotechnologist Dr to address climate change through presentations from industry. and personal aerial vehicles, and Michelle Dickinson, aka Nanogirl, transport and mobility. The second day covered climate government projects and direction. was MC at the May 6-7 event, “Technology is changing every issues, transport equality and Executive director Simon and led 40 speakers from the US, aspect of our lives – the way we behaviour change, innovations, McManus says: “The two- Australia and New Zealand. learn, communicate, do business emerging technology and business day summit acknowledged They included Horace Dediu, and get where we need to be,” she models, and policy designed to challenges created by urban a world-leading analyst on says. “I was excited to be part of the help pave the way for change.

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

DION JONES is taking over as chief executive WE ALL LOVE WATCHING the media. However, his officer of Instant Finance in August due to Richard the rugby and why not, messages to the public de Lautour’s retirement. He has been group general it’s our national game. are direct and about manager of finance at Turners Automotive Group for The All Blacks are current systems, processes and about two-and-a-half years. world champions and one working with the players.

Before that he was group general manager of sales Dion Jones of the world’s most highly He always puts his players – finance at Turners after being Turners Finance’s general regarded teams in terms and their welfare first. WILL ALLAN manager for three years. of their win record – and What he has also done Hello Monday That was preceded by a year as national sales manager for finance especially how they win. very well is nurture and and insurance at the company. All up, Jones has about 23 years’ This year, they go to the world grow talent, so when there are experience in the finance sector. cup in Japan to try to do what no injuries – serious or not – there’s As for de Lautour, company chairman Laurie other team has done and may someone just as strong and Margrain thanks him for his leadership. never have the opportunity to do, capable to step in. “Richard joined Instant Finance in 2003. He has and that’s win three titles in a row. We’ve seen this in the lead-up helped grow the business through a period that Why is this important, why am I before every world cup and this saw the virtual collapse of the local finance industry writing about the All Blacks and the one will be no exception. The followed by the global financial crisis. Rugby World Cup, and how does planning for the next tournament Richard de Lautour “He has brought disciplines and processes to our this matter to your dealership? has already started. financial management and customer-service culture Behind every successful team, Think about your team and how that have helped us become successful.” there’s a reason why it achieves you are continually developing it, the results it does. It’s as simple but also about the inevitable if one ANDREW SHERLIKER has started as manager as doing the basics, getting them of your key people decides to leave of operations at 2 Cheap Cars after resigning as right and sticking to process when or someone goes on leave for a Manheim’s general manager for New Zealand in the pressure’s on. long period. Think about who you March after holding that position for five years. The All Blacks’ win ratio is want to attract into your business, He started his career in the automotive industry incredible, but what’s fantastic and if it’s equipped to lift and at British Car Auctions in 1987 before moving into the leasing sector about their record is how they do enhance their capabilities. for Camden Motors and Dial Contracts as remarketing manager in the it and the time pressure they’re Importantly, having coaching UK and France. Sherliker then joined Manheim UK where his positons under to achieve it. conversations is included general manager and regional operations manager during his I can remember key and something eight-year tenure. when previous teams “Think about you need to Before moving to this country, he worked for the Sytner Group – wilted under pressure make a priority. Europe’s largest prestige dealer group – as remarketing manager. and lost games in the your team and These are simple, last 20 minutes when how you are straightforward 15 to ANNA RAWLINGS has been unveiled as chairwoman they were leading. developing it” 20-minute catch-ups of the Commerce Commission when Mark Berry steps Now the All Blacks win with your staff. They down at the end of May. matches with two minutes to go can be informal and can happen on “She brings expertise and experience, having when down by three or five points. the job. served as a member of the commission since 2014, When you look at your If you notice someone in your and has frequently led its work on consumer matters,” says Kris Faafoi, dealership and how it operates, dealership is doing something Minister of Commerce and Consumer Affairs. review who you have in your that isn’t quite how you do things, JOSEPH LIAVA’A will work alongside Rawlings as an associate business and how they’re take him or her aside. Find out why member. He has previously worked in consumer law-related roles in contributing to its success. When it was done that way and offer a government and agencies. the pressure’s on, how do they solution. By asking that question, “His wide experience working with vulnerable communities has perform? you may open up a lot more. given him in-depth insight on consumer issues,” adds Faafoi. Also, think about how you When I started in the workforce found them, what skills they had more than 20 year ago, the MARK REUSS, former chairman and managing director of Holden, has when recruited, training and environment was “do as I say and been promoted to president of General Motors. development you have provided, don’t ask questions, just get on Previously global product chief, he succeeds New Zealander Dan and how often you check in with with it”. Ammann, who now leads the company’s Cruise autonomous vehicle unit. them to see how they’re going. Today’s leadership style is about These four areas are just the tip collaboration, coaching and being JONATHAN ONYZSKEIWICS is taking over as chief executive of Auto of the iceberg to further review closer to your people. If you can Super Shoppes on May 13 from Kellie Tremayne. your people, and their performance make that little adjustment, you He moved to New Zealand from Canada in 2013 to become franchise and contribution to your business, will be amazed at the results. Like development manager and then general manager of Midas NZ. operations and customers. the All Blacks, focus on the little Steve Hansen may not always things, get them right and success TO FEATURE IN INDUSTRY MOVERS EMAIL [email protected] come across as engaging with will follow.

24 www.autofile.co.nz f & i focus Unlocking more potential profits

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www.autofile.co.nz 25 industry profile Engineering success from top

arc Ebolo, the Australia as a manufacturing t managing director of engineer. “I was in the paint shop Holden NZ, has a deep and a lot of our work involved Mconnection to the brand. changes made on the assembly “I’ve been around it for 20 years line for model launches. now. I’ve seen passion from dealers “Many assembly-line tools are and customers for Holden, and specific to certain models. When how different that passion can be. new vehicles come out, they “Most of the time, we think require different tools, such as it’s around the Commodores and those that keep doors open as cars V8 Supercars. But passion for go through the paint shop. the marque can go way back to “Any time you talk about owning an Astra as a first car or anything engineering-related, experiencing some of the European attention to detail is probably the products we’ve brought out.” most important thing.” Current reality paints a different A few years later in 2001, picture with the lion-and-stone Ebolo joined Holden’s graduate badge transitioning itself in-line Marc Ebolo, managing programme. For the first year, he director of Holden NZ with market trends. rotated through departments “We’ve seen some big changes to understand how the business in our product line-up over the When I was young, I had a friend His education continued in the worked before settling in past couple of years,” says Ebolo. who was building up a rally car, an UK after gaining an international programme quality, “which was “Commodore manufacturing old Datsun. I got involved and was exchange scholarship to the like being the voice of customer in Australia has ended and we’ve the navigator during races. That London Business School for his satisfaction for new-model launches”. moved to its European-sourced cemented my love for the industry MBA’s five-month elective portion. He was interested in building range. And we’ve started importing and I couldn’t think of anywhere “It’s still one of the greatest cross-functional experience in the products from the US. That’s else I would want to work.” experiences I’ve had because of the company. He had manufacturing important for us and we’ve had Ebolo initially studied arts and range of students and lecturers, experience, and then as a quality nothing but positive reviews.” engineering degrees with a minor and because I was there during the manager exposed to new models in arts history and mechanical global financial crisis. and long-term product planning WORKING HIS WAY UP engineering. He dropped arts after “I had first-hand experience of before moving into future-product Born and raised in Melbourne, realising double degrees were the crisis in the middle of markets planning. Ebolo has always loved cars. sought-after by employers, and severely impacted. Overall, we “General Motors had just “I’ve always thought of picked up commerce focusing on were impacted in Australia, but acquired Daewoo and, in 2005, we automotive as an exciting marketing and management. nothing compared to the UK, worked on the next-generation industry. It’s the reason I took “I was at university for seven Europe and the US.” product from there. I was also up mechanical engineering and years, including an industry-based Ebolo began his automotive involved in pricing and go- I always envisioned myself in it. learning year. After that I did an MBA.” career with a student year at Ford to-market launch strategies. Then it was into marketing and communications.” Ebolo was involved in Holden’s first digital and social-media Driving wagons ‘year after year’ campaigns, which was a massive change in direction. His next role Marc Ebolo bought his first car – a something I wanted to do. It’s in After a while, I became set on was in sales – looking after dealers blue 1983 Mazda 626 coupe for my favourite top two cars. I loved Commodore wagons. That’s what in Western Victoria. about $8,000 – when he 18. “It had the look of it and how it drove.” I’ve driven year after year.” With some good mentors the full electric kit and a sunroof”. After a few years, Ebolo flicked Ebolo’s current drive is a Calais V at work, he identified areas to It was sold about three years it on for a 1986 Nissan EXA with Tourer wagon. He laughs: “I haven’t improve his skills and being later because, “they say you’re not a targa roof. “I loved the beach changed much over the years.” forecast manager gave him a wider a true automotive enthusiast until lifestyle and wanted a convertible. range of experience. you’ve owned an Alfa Romeo, so I started with Holden in 2001 and A regional manager role came I traded it for a black 1984 Green have driven Holdens since then”. up with GM International Leaf Sprint – I had a love-hate To this day, the Adventra LX8 in 2015 overseeing relationship with it, more love is his favourite, “a big wagon with Malaysia, Brunei, Fiji than hate”. all-wheel drive and a V8”. and part of GM’s He adds: “I got to experience “Leasing Holden has allowed south-east Asia group. driving an Alfa, which was always me to drive cars across the range. A Calais V Tourer “That exposed me station wagon to other business aspects 

26 www.autofile.co.nz industry profile

t – seeing how distributors run their operations, future planning, after- sales, ensuring all GM requirements from recalls were followed, parts availability and common marketing approaches across countries. “Living in Kuala Lumpur was great after getting used to the heat Marc Ebolo, left, with Scott Brown, US Ambassador to New Zealand at the latter’s official residence in Wellington for the launch of the Acadia and humidity, which only took a couple of months, and when you get used to how people drive there. representative on those teams. big their rise will be, or whether and development on battery “I also got exposure to other “After moving into the we’ll see technologies – such as technology to resolve some current markets, such as the Philippines. sales network, I’ve developed hydrogen fuel cells – making a big issues with it. Many were focused on pick-up a passion for helping provide impact. Regardless of what it is, it “It’s exciting to see products trucks due to industry or road tools or guidance to facilitate always comes back to fundamentals, GM is working on. For example, conditions, especially in rural areas. best practice, especially in dealer such as what is the product offering, it has a zero-emissions, zero- Malaysia was in transition. It was marketing and activations. That’s its price and if consumers are ready congestion and zero-crashes demanding more safety features something throughout my for what’s on offer. strategy. It looks to the future, but and technology.” career that has been a focus and “There’s a big question about beyond electric cars to connected During 2017, he returned to something we’re working on – to infrastructure. Some countries are vehicles and technologies that aid Australia as Holden’s general help dealers in this country and moving fast to become electric- everyday use. manager of revenue strategies, provide support for best-practice based and a lot of that’s being “There are so many factors at working with the sales team and local marketing. led by governments, while others play that it’s going to be hard to executive director of sales in “My international assignment are putting it in the hands of determine when new technologies strategy planning. was a highlight, as is being private businesses to prepare for will move from early adopters enter Since taking on the top job managing director for New the future. There is also research the mainstream.” on these shores from Kristian Zealand. It has been an easy Aquilina in July 2018, he has been transition moving to Auckland, impressed by staff at franchises. which is an amazing city, and we’re “I’ve been to most dealers, having fun. My wife has settled in to which has allowed me to see New and my six-year-old daughter is Japan new Zealand Zealand. The one thing that has enjoying school.” stood out is their dedication. When As for what’s happening in auto specialists we launch a campaign and events, the Holden NZ space, March saw our dealers are chomping at the bit the launch of a campaign to push to put in 100 per cent.” its range of SUVs as the market Looking ahead, Ebolo says continues to shift away from cars. Easy the marque wants alignment And the end of manufacturing all-in pricing and synergies across this and the in Australia Tasman has seen Multiple Australian markets. “That’s vitally the marque tapping into GM service and important. It’s more efficient than production across Europe and in delivery Regular options easy going it alone. But where there are the US. “For example, the Acadia vessels from Japan to NZ differences, marketing executions and Equinox, which are very Reliable will be different. different, are the first chances affoRdable “This gives us the opportunity we’ve had to get American product to trial different go-to market into New Zealand.” servicing strategies in New Zealand, whether North and Full MPI south Island because it’s a smaller market or due ON THE ROAD AHEAD pre-inspection ports to different conditions. This is the Ebolo predicts the motor-vehicle facilities in Japan role’s most exciting aspect.” industry will see more changes in Comprehensive the next 10 years than what it has marine BEST PRACTICE ‘PASSION’ experienced in the past 100. insurance Ebolo’s career highlights include “It’s going to be the most working with global teams on exciting industry to work in during products coming out of GM Korea this time. It’s a question of how in 2005 when GM developed a quickly technology develops and new range of global architectures, that will determine its path. www.yusen-logistics.com such as for the Barina, Cruze and “Whether we see the rise of T: (09) 394 1392 Spark. He was the Australian electric vehicles or even how E: [email protected]

www.autofile.co.nz 27 motorsport

The FC3 calendar Kiwis keep rivals There is one race on each date given. May 11-12: Circuit de Barcelona- Catalunya, Montmelo; June 22-23: Circuit Paul Ricard, Le Castellet; June in sight overseas 29-30: Red Bull Ring, Spielberg; July 13-14: Silvestone; August 3-4: nvercargill’s Brendon Leitch FIA Formula 3 championship, going across the premier levels Hungaroring, Mogyorod; August 31 is showing good form in place one and place two in the of motor racing. to September 1: Circuit de Spa- south-east Asia, shadowing the opening test. Currently showing Francorchamps, Stavelot; September Ipodium in his first run in the region’s Alongside his place in the promising pace in testing 7-8: Autodromo Nazionale Monza; Sochi Autodrom. Formula 3 championship and doing Ferrari Driver Academy, he has also for the new FIA F3 September 28-29: double-duty in the single-make been inducted into the exclusive Championship, Armstrong Lamborghini supercars series. driver management organisation says joining All Road Racing in the pro-am division of All Road Management, which Management marks an the Super Trofeo Asia series, Leitch maintains a close relationship with important step forward in capped a fine weekend on debut Ferrari and has strong networks his racing career. with co-driver Lim Keong Wee to claim sixth overall and third in the The South-East Asia F3 race schedule pro-am division in the final race. DATE CIRCUIT EVENT That backed up a ninth overall and April 6-7 Sepang International, Malaysia Round 1 (races 1-3) fifth in class in the first race. May 11-12 Buriram International, Thailand Round 2 (races 4-6) Meanwhile, Kiwi racer Marcus June 22-23 Suzuka, Japan Round 3 (races 7-9) Double-duty for Brendon Leitch in Malaysia. Sept 7-8 Shanghai International, China Round 4 (races 10-12) From the Lamborghini Super Trofeo 2019 Armstrong has been topping the to Formula 3, the Invercargill driver is at the timesheets in testing for the new Sept 27 Shanghai International Round 5 (races 13-15) sharp end of the field Paddon sticks to record-breaking word n his interview with Autofile points to the next round of the last month, rally driver Hayden local championship. Paddon hinted he was looking Driving Mazda 2 AP4s, father- Ito break records and win events in and-son team Andrew and Jack his assault on the Asia-Pacific Rally Hawkeswood finished in second Championship. and third in the APRC category. Well, he started as he means There were 132 entries in this to go on at the Otago Rally by popular round of the New Zealand winning all but one stage and and Asia-Pacific championships. setting nine stage records in the in action in Otago Otago Rally, top five outright: opening round on April 13-14. 1st – Paddon/Kennard, Hyundai i20 “The win is great for the car or NZRC, the way you prepare is to enthusiastic local support in true AP4, 2 hours 25 mins 53 seconds; and great for Hyundai,” he says. very similar and it’s important to be style by taking outright victory by 2nd – Hunt/Rawstorn, Subaru “I’m back in the rally groove, doing it on a regular basis.” more than nine minutes. Impreza WRX, +7:16.9; 3rd – Turner/ making and listening to pace Paddon’s small, dedicated team Ben Hunt, long-time Subaru Read, Audi AP4, +8m:25.0; 4th – notes, preparation and all that side ran a 2019 version of the Hyundai driver and NZRC entrant, won the Campbell/Peden, Ford Fiesta AP4, of things. i20 AP4+ for him and navigator New Zealand rally category and +8:25.0; 5th – Hawkeswood/Cress, “It doesn’t matter if it’s the WRC John Kennard, and they responded was second overall to take top Mazda 2 AP4, +15:25.6.

SpecialiStS in pre-Shipment

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

28 www.autofile.co.nz motorsportf & i focus Recharging premier touring-car racing

e ran a young charger MotorSport NZ has been granted called da the rights to run the TCR here, a Silva in Formula 3 in the manager is about to be appointed HUK in the 1980s. and the cars will run in 2020 as An avid talent-spotter, Dick a premier class in New Zealand’s Bennetts now has decades of race summer series. and championship wins behind him. Ironically, one of the few markets Dunedin-born, he often takes where the TCR struggles is the UK a “working holiday” back in New – “that’s because we have the BTCC Zealand during the British winter, and it has a very loyal following”. and can be seen watching young The BTCC allows a wider range international and Kiwi racers doing of vehicles than the TCR, and is battle during our summer’s annual the world’s oldest and arguably five-week season of the Castrol most robust national touring-car Toyota Racing Series (TRS). category. “The series offers young drivers WSR is once more in the thick from Europe and the UK a great of the action and has brought the Dick Bennetts founded chance to do some testing and West Surrey Racing in 1981 BMW 3 Series back into the BTCC, racing,” he opines. running a pair of Motorsport- His company and team, West Mondeos. Most recently, the team derived BMW 330i four doors. Surrey Racing (WSR), was founded has run factory . A BTCC weekend is a busy time in 1981. It has since won more than With such a pedigree, Bennetts “The TCR could for the team. There are three races 70 races in F3, and taken countless has a unique perspective on single- in a compressed timeframe, and class and outright wins in the British seater and touring-car racing. work very well to every second of free practice and Touring Car Championship (BTCC). As New Zealand gears up bring automotive qualifying time is precious. It ran the New Zealand team to adopt the global TCR racing brands and “We only have one or two in the 2005/06 A1GP and then category, he sees this and the TRS hours between races, so we need switched to Team USA the as offering young Kiwis their best advertisers back enough people to get a lot of work following year. shot at international careers. into motor racing” done quickly.” Other names of note that “There are two things in New The team will have 27 or more have steered WSR F3 cars to Zealand, motor racing and rugby and has now been accepted as the people at a circuit. They include championship victories include – oh, and a bit of yachting,” says category for the World Touring Car part-timer and Kiwi mechanical , Mauricio Bennetts. “There are permanent Championship. engineer Richard Oxton, who was Gugelmin, Mika Häkkinen and racetracks from one end of the The vehicles are based on interviewed by Autofile earlier this . WSR and driver country to the other. For a small four or five-door production cars year. Bennetts and Oxton’s motor- are the current country of about 4.6 million people powered by two-litre turbocharged racing father David are best friends. BTCC champions. in the South Pacific, that’s pretty engines. Much of the production Factory support is essential, Bennetts was part of a diaspora impressive.” vehicle is retained, such as the partly due to the massive spares of Kiwi racing talent in the UK in So what’s Bennetts’ view of bodyshell and suspension layout, inventory required to keep the the 1970s, arriving in 1972. The the forthcoming TCR category? and the cars feature race brakes vehicles running and handling well first WSR foray into touring cars “It could work very well to bring and aerodynamics. in such a bruising environment. came in 1996 with the factory Ford automotive brands and advertisers The rules specify two-wheel Part of the appeal of the TCR back into motor racing.” drive and a spaceframe design to teams, says Bennetts, is cost. The TCR was launched in 2014 similar to the AP4+ cars currently With many more TCR cars being dominating in New built than BTCCs, economies of Zealand. They are fast, says scale apply to parts such as the Bennett, and reasonably easy to suspension, brakes and drivetrain. set up. “Most modern car If the rules are written correctly, brands have eligible or the inventory costs of taking part homologated models can be controlled, while the racing already, so there’s plenty should be close and exciting with of choice of current emphasis on strategy and driver models, while late-model ability. stuff out of Europe is good MotorSport NZ has always value for money.” recognised the category couldn’t West Surrey Racing has built three BMW 330i Bennetts predicts the stand alone in New Zealand, which race cars for the BTCC. The 3 Series is the latest category will gain momentum follows Australia where its first in a line of the marque’s road cars for competition that stretches back to the E30 325i of the early 1980s rapidly in this country now that races start this month. www.autofile.co.nz 29 disputes

The case: The buyer said his Vehicle’s wheels locked up because Nissan Murano’s brakes, tyres and transmission were faulty, and he wanted to reject it. However, the handbrake was accidentally activated dealer refused. It said the car passed its warrant of fitness (WOF) on the day of purchase and the brake issue was it for diagnostic trouble codes. The trader produced the Background due to the vehicle being driven with Steven Cherrington wanted to It found that the variable vehicle’s WOF check sheet dated its handbrake on. reject his 2005 Nissan Murano valve-timing sensor had failed April 27, which was the day because he said its transmission, and replaced it. The $510 repair Cherrington bought the car. It The decision: The tribunal said brakes and tyres were defective. bill was covered under the buyer’s showed four tyres were within evidence provided at the hearing showed the Nissan didn’t breach the He wanted Direct Car Imports, mechanical breakdown insurance the legal tread limits. guarantee of acceptable quality in which sold him the car on April 27, (MBI) policy, apart from the excess The tribunal’s assessor Consumer Guarantees Act (CGA). 2018, to take it back and refund the of $200, which was paid by Direct agreed with Jones’ and Govind’s purchase price of $13,000. Car Imports. submission that the wheels had At: The Motor Vehicle Disputes The trader refused saying One of Cherrington’s complaints locked up because the handbrake Tribunal, Auckland. it appeared the brakes had was that his MBI policy had been was accidentally activated. overheated after the car was driven used for repairs without his consent. He noted the Nissan was a with its handbrake on. As for the The tribunal said there was front-wheel drive, so there was problems experienced with the tyres, Direct Car Imports said the nothing inherently wrong with no connection between the Nissan’s brakes and locked wheels Murano’s WOF, dated on the day traders making claims on behalf of transmission and back wheels. were likely linked to accidental of purchase, showed all four were consumers, although they should Therefore, Cherrington’s activation of the handbrake. within legal tread limits. ensure the car owner agreed before allegation the torque converter For that reason, the authority The trader added it had told submitting one. had failed seemed unlikely and found Cherrington hadn’t Cherrington to bring the vehicle Oracle’s director Ashh Govind there was no other evidence established any breach of the back if he experienced transmission told the hearing that while the produced to support that claim. guarantee of acceptable quality in problems, but he hadn’t done so. Nissan was at his workshop he Cherrington reported a rattling relation to the brakes, and there drove it and found the rear wheels noise from the transmission and appeared to be no link between The case weren’t locked. He checked its problems changing through the the transmission and rear wheels Cherrington initially purchased a rear brakes and found them to be gears. locking. The buyer also failed to BMW 320i from Direct Car Imports. glazed black. However, he produced no produce any evidence indicating He was unhappy with it because of He reported that it appeared expert evidence indicating any any transmission issues. brake and engine problems, so he the brakes had overheated, problem with the transmission and The tribunal said it was easy for traded it for the Murano. probably due to the vehicle being he said no transmission lights had a purchaser to inspect a vehicle’s However, he said that within driven with its handbrake on. appeared on the dashboard. tyres and ensure there was 23 hours of owning the Nissan its Jones also viewed the brakes sufficient tread at the date of sale. torque converter “fully stuffed out”. while they were at Govind’s The finding It didn’t ordinarily consider that Cherrington said the rear wheels workshop and confirmed his The tribunal had to determine worn tyres constituted a failure of locked up for about 20 metres diagnosis. No repairs to the brakes if the Nissan failed to comply acceptable quality as long as they while he was driving it. He heard were carried out and Cherrington with the CGA’s guarantee of were lawful on the date of sale, squealing and burn-off sounds from collected the vehicle on May 11, acceptable quality. which in this case they were. the car, and a loud bang. 2018. Whether a vehicle is of Accordingly, Cherrington failed He texted Direct Car Imports’ Cherrington also claimed acceptable quality is considered to establish the tyres were not of director Geoffrey Jones about the Nissan’s tyres were bald. In from the point of view of a acceptable quality. the issue, who sent a tow truck to evidence, he produced a VTNZ reasonable consumer who is fully collect the Nissan. Jones said its safety-inspection check sheet, acquainted with the state and Order back wheels weren’t locked when it which confirmed the left-rear tyre condition of the car, including any The only possible breach of the was collected. was below the legal tread limit at hidden defects. CGA was the sensor failure, which The vehicle was taken to Oracle 1.1mm and the right-rear one was The tribunal accepted its the trader remedied, so the claim European Services, which scanned borderline with 1.8mm. assessor’s advice that the was dismissed.

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30 www.autofile.co.nz disputes

The case: After discovering Refusal to deal with repairs opens trader a water leak in his Volvo soon after purchase, the buyer asked to possible scrutiny from commission the trader to fix the problem. However, the dealer said the issues appeared to have occurred Background Cavanagh declined that He added the vehicle was left outside the three-month warranty offered to clients and told the Matthew Cavanagh purchased because he didn’t think the in a carport on an angle with its purchaser he would have to fix a 2010 Volvo V50 from Universal windscreen was the leak’s source. nose uphill, allowing water to the leak. Imports on September 1, 2018, for Instead, he went to Archibald flow from the front of the car to $14,499. The car had no reported and Shorter, which found the the rear. The decision: The trader was mechanical issues or damage history. drain from the sun roof was The tribunal’s assessor said ordered to pay the buyer his repair costs of $1,726 and the matter About three months following disconnected, possibly caused by vehicles on Peck’s yard were was referred to the Commerce purchase, he noticed the carpet a build-up of dirt and dust, and parked nose downwards, making Commission for consideration. in the left-rear footwell was wet. there were signs of recent panel it less likely water could have After unsuccessfully trying to work on the left-rear door. flowed as easily from the front to At: The Motor Vehicles Dispute dry it, he realised there was an The buyer again asked the the back of the Volvo. Tribunal, Auckland. ongoing leak. dealer if it would consider the leak Cavanagh contacted the dealer to be a “warrantable fault”. The The finding The adjudicator found asking it to remedy the problem trader asked Cavanagh to take The tribunal considered it was Cavanagh had established that only to be told it supplied a 90-day the Volvo in for inspection and likely the disconnected sun-roof as Universal Imports refused to warranty on vehicles and refused possible repairs. drain was a pre-existing fault. remedy the failure, he was entitled to pay for repairs. However, the buyer replied Even if the problem occurred to have the leak fixed elsewhere He took the vehicle to the car was undergoing repairs post-purchase, a reasonable and obtain all reasonable costs Archibald and Shorter, Auckland, at Archibald and Shorter. Pipa consumer wouldn’t expect a incurred in fixing the car. which fixed the fault, and then responded “we didn’t accept substantial leak – requiring applied to the tribunal to recover this repair, we repair all our cars extensive investigation and repair Orders the $1,726 bill. ourselves”, and again encouraged work – to occur so soon after Universal Imports had to pay Cavanagh to take it in to the trader. buying it. Cavanagh the $1,726 repair bill. The case Cavanagh replied Peck had Therefore, the Volvo failed The tribunal was concerned Cavanagh first noticed water phoned him about two weeks to comply with the guarantee the trader had stated its vehicles soaking the carpet in the footwell after his first email saying the of acceptable quality in the only came with a 90-day warranty and thought his son had spilled vehicle was out of warranty and Consumer Guarantees Act (CGA), and outside that period it had no his drink. he would have to repair it himself, so the buyer had to ask the obligation to remedy faults. He unsuccessfully tried to dry therefore the dealer had waived supplier to fix that failure within a The CGA’s guarantees apply it out before concluding there was its rights to fix the Volvo and he reasonable time. for a reasonable period. Traders a leak. He emailed the trader on would send it the repair bill. Cavanagh’s understanding have to assess each fault on its September 27 about the issue and Peck told the tribunal the was that any repairs carried out own merits and shouldn’t base asked it to inspect the Volvo. leak wasn’t pre-existing because by Universal Imports would be at decisions solely on how long a Universal Imports employee it would have been noticeable his own cost and the tribunal said consumer has owned a vehicle. Nikolay Pipa replied saying it had much sooner than three months there was no evidence to suggest It is contrary to the Fair Trading “a specialist who can have a look after purchase due to Auckland’s otherwise. Act to make a false or misleading and fix the leak, going to organise wet winter. The tribunal said it had the representation concerning the an appointment”. He also noted the car had been clear impression the trader existence of any guarantee, right or About two weeks later, the stored outside on his yard with no refused to remedy the leak. While remedy available under the CGA. dealer’s director, Andrew Peck, evidence of it leaking. Universal Imports made several The tribunal ordered a copy phoned Cavanagh to say it only Cavanagh said he drove the offers to have the vehicle assessed of its decision be referred to the provided a 90-day warranty, but Volvo infrequently, which might for repair, at no point did it inform Commerce Commission for it to would get someone to repair the explain why it took him three Cavanagh it was prepared to foot consider whether to take any extra windscreen. months to notice the problem. the bill. action against the trader.

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

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

MAR ’19 2019 YEAR 2019 MAR ’19 2019 YEAR 2019 MKT MAKE APR ’19 APR ’18 +/- % MAKE MODEL APR ’19 APR ’18 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 2,392 2,644 -9.5 22.0% 9,731 21.4% Mazda Axela 584 537 8.8 5.4% 2,434 5.4% Nissan 1,976 1,970 0.3 18.2% 8,771 19.3% Suzuki Swift 508 504 0.8 4.7% 2,194 4.8% Mazda 1,882 1,760 6.9 17.3% 7,514 16.5% Honda Fit 494 368 34.2 4.5% 2,178 4.8% Honda 1,216 1,053 15.5 11.2% 5,083 11.2% Mazda Demio 460 409 12.5 4.2% 1,835 4.0% Subaru 614 623 -1.4 5.6% 2,553 5.6% Nissan Tiida 407 391 4.1 3.7% 1,991 4.4% Suzuki 594 604 -1.7 5.5% 2,539 5.6% Toyota Prius 300 265 13.2 2.8% 1,238 2.7% Mitsubishi 530 379 39.8 4.9% 2,139 4.7% Toyota Wish 295 231 27.7 2.7% 1,107 2.4% BMW 394 471 -16.3 3.6% 1,662 3.7% Mitsubishi Outlander 290 223 30.0 2.7% 1,246 2.7% Volkswagen 339 371 -8.6 3.1% 1,430 3.1% Nissan Leaf 263 229 14.8 2.4% 1,083 2.4% Audi 207 228 -9.2 1.9% 842 1.9% Toyota Aqua 239 64 273.4 2.2% 804 1.8% Mercedes-Benz 146 222 -34.2 1.3% 618 1.4% Subaru Legacy 238 303 -21.5 2.2% 1,033 2.3% Lexus 118 77 53.2 1.1% 457 1.0% Mazda Atenza 237 248 -4.4 2.2% 934 2.1% Ford 66 88 -25.0 0.6% 319 0.7% Toyota Vitz 234 244 -4.1 2.2% 977 2.1% Volvo 51 53 -3.8 0.5% 223 0.5% Nissan Dualis 215 159 35.2 2.0% 860 1.9% Jaguar 41 39 5.1 0.4% 167 0.4% Mazda Premacy 209 186 12.4 1.9% 890 2.0% Chevrolet 39 39 0.0 0.4% 161 0.4% Volkswagen Golf 208 221 -5.9 1.9% 917 2.0% Land Rover 31 32 -3.1 0.3% 150 0.3% 206 154 33.8 1.9% 882 1.9% Mini 31 26 19.2 0.3% 123 0.3% Nissan Note 175 149 17.4 1.6% 789 1.7% Chrysler 27 13 107.7 0.2% 87 0.2% Toyota Auris 168 156 7.7 1.5% 624 1.4% Holden 26 25 4.0 0.2% 113 0.2% Nissan X-Trail 150 86 74.4 1.4% 625 1.4% Jeep 24 23 4.3 0.2% 97 0.2% Toyota Corolla 139 139 0.0 1.3% 587 1.3% Hyundai 20 23 -13.0 0.2% 88 0.2% Honda Stream 134 136 -1.5 1.2% 563 1.2% Dodge 16 20 -20.0 0.1% 110 0.2% Nissan Skyline 120 115 4.3 1.1% 469 1.0% Porsche 13 16 -18.8 0.1% 73 0.2% Mazda CX-5 112 58 93.1 1.0% 368 0.8% Kia 12 8 50.0 0.1% 39 0.1% Honda CRV 108 102 5.9 1.0% 380 0.8% Peugeot 9 14 -35.7 0.1% 25 0.1% Toyota Ractis 108 91 18.7 1.0% 374 0.8% Renault 8 8 0.0 0.1% 22 0.0% Mazda Verisa 103 85 21.2 0.9% 412 0.9% Alfa Romeo 7 1 600.0 0.1% 14 0.0% Nissan Bluebird 97 100 -3.0 0.9% 416 0.9% Daihatsu 6 9 -33.3 0.1% 27 0.1% Toyota Vanguard 94 64 46.9 0.9% 295 0.6% Maserati 4 3 33.3 0.0% 12 0.0% Toyota MarkX 88 222 -60.4 0.8% 411 0.9% Smart 4 12 -66.7 0.0% 18 0.0% Mitsubishi Galant 86 55 56.4 0.8% 311 0.7% Cadillac 3 2 50.0 0.0% 18 0.0% Honda Odyssey 86 115 -25.2 0.8% 368 0.8% Citroen 3 3 0.0 0.0% 30 0.1% Nissan March 85 75 13.3 0.8% 354 0.8% Datsun 3 1 200.0 0.0% 3 0.0% Nissan Juke 84 53 58.5 0.8% 334 0.7% Pontiac 3 3 0.0 0.0% 13 0.0% Honda Insight 83 27 207.4 0.8% 270 0.6% Others 28 30 -6.7 0.3% 191 0.4% Others 3,476 4,329 -19.7 31.9% 14,909 32.8% Total 10,883 10,893 -0.1 100.0% 45,462 100.0% Total 10,883 10,893 -0.1 100.0% 45,462 100.0%

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34 www.autofile.co.nz www.heiwa-auto.co.nz Profits on sales start to rise argins have continued Plymouth are trading above As for last month, there was a to the country’s freight movement, to recover since the first expectations. slight drop in the used-imported and account for two-thirds of quarter of the financial Also, agreement has been passenger vehicle market nationally import volumes. Myear, although pressure remains reached to relocate Turners’ site on with 10,883 registered for the first A working group report on used-vehicle imports, reports Auckland’s North Shore after the time – the lowest total since June released last month was the first Turners Automotive Group. land was compulsorily acquired by 2014 when 10,760 were sold. of three to be published seeking In particular, demand in the NZTA. April’s result brought the year- advice on a range of legislative, Auckland has remained soft, notes “The settlement helps to offset to-date total to 45,462, a decrease biosecurity and network issues. the company in updated guidance the significant costs of absorbing of 3,039 units – or 6.3 per cent – Major stakeholders have been for the 12 months to March 31. key staff into the wider business, compared to the same period in canvassed with some concerns Excluding a one-off, non-cash increasing marketing to offset the 2018. raised including the three ports adjustment of $4.5 million relating high-profile ‘billboard’ building, The Mazda Axela was April’s competing with each other and to Buy Right Cars rebranding to the move to the new Wairau Valley most popular model with 584 failing to co-operate. Turners Cars, the company says this location and reduced operating registrations. The group adds the status quo is consistent with the midpoint of contribution from a closed branch.” It was followed by with Suzuki’s provides few incentives for logistics previous guidance of five to 10 per The new North Shore branch Swift with 508 and Honda’s Fit on and freight companies to work cent below $34-$36m provided in will be operating towards the end 494. together to achieve efficiencies. November. of the second quarter of the 2020 Toyota topped April’s marques’ The government has previously Todd Hunter, chief executive financial year, while relocating the ladder with 2,392 units, Nissan was signalled support for moving officer, says while market Whangarei branch to a higher- second with 1,976 sales and Mazda Auckland’s port to Northland, but headwinds in the first half of profile location was completed third on 1,882. the group says there’s no point the 2019 year have continued, in March since then trading “has Meanwhile, an interim report further investing in Northport the fourth quarter’s trading proven to be strong”. into the future of the upper North without developing the rail line performance was slightly ahead of Hunter adds: “Outside of its Island’s ports has highlighted into the country’s biggest city. expectations and an improvement automotive division, Turners’ inefficiencies, but has yet to That said, one idea being floated on the third quarter. finance, insurance and EC Credit recommend how to fix them. is for a vehicle servicing and import “New Zealand’s ageing fleet businesses continue to perform Ports of Auckland, Port of facility to be based at Northport. will see hundreds of thousands of in-line with expectations.” Tauranga and Northport are critical Another option is for a new mega- cars needing replacement over the port in the Firth of Thames. next decade and market conditions The report notes car importers Used Imported Passenger Registrations - 2016-2019 are leading to consolidation in have indicated a change in landing the dealer market, which provides 15,500 location from Auckland could Turners with further opportunity to 15,000 add about $100 per unit in costs, build market share,” he adds. 14,500 but this could be less than the Hunter notes the used-vehicle 14,000 land subsidy to store vehicles on market is still fragmented, but “we 13,500 Auckland’s waterfront. will continue to focus on building 13,000 Ports of Auckland is New our customer base and increasing 12,500 Zealand’s largest importer of market share by adding value to 12,000 vehicles. In the year to June 2018, it customers through our ‘one-stop 11,500 handled nearly 300,000 units. This shop’ and better service”. 11,000 was a jump of 43 per cent from 2014 He says there will be continued 10,500 2016 when it processed 207,591 cars. 10,000 2017 progress in Turners’ retail network 2018 The working group will release 9,500 with investment into it delivering 2019 a second report in June with operating contributions, while 9,000 recommendations expected in Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec new sites in Wellington and New September.

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www.autofile.co.nz 35 www.mmnz.biz More used cars crossing ditch he increasing availability of that make them attractive to Kiwi performance V8 vehicles, such as with the total coming in at 13,349. stock at the right price may importers. the Holden Commodores, the SS But this represented a sharp be one of the reasons why “There seems to be a raft and R8.” decrease of 31.3 per cent, or by moreT used passenger vehicles are of makes and models coming Willett adds purchasing 6,089 units, when compared being imported into New Zealand through,” says Willett. “There has decisions also depend on where to the same month of last year, from Australia. been an even volume of vehicles car importers’ business cycles are at which was a catch-up following So far this year, 2,041 used cars coming though from all categories, – and where they are at in regards delays caused by stink-bug have crossed the Tasman for a including statutory write-offs. to their market and stock levels. discoveries. market share of 3.7 per cent. “There are many in the trade “You may find some of them The year-to-date total is 461 The total is up by 30.5 per who tend to focus on particular have got to a point where – given units higher than the same period cent from 1,517 units during the types of vehicles. Some look at pricing in Japan is rather firm and in 2018 with 48,882 units crossing same timescale of 2018, when late-model, low-mileage cars, while it’s often difficult to get good our border so far in 2019. Australia’s market share was others look at four-wheel drives quality stock at the right price out There was a significant drop 1.9 per cent. and double-cab utes. of Japan – they may have elected in used-car imports from New Frank Willett, chief executive “Some don’t really have buying to top up their stock with vehicles Zealand’s main supplier, Japan, officer of Autohub NZ, says certain patterns and purchase at what they from Australia.” in April with 12,571 units being cars may be on the market across believe is a good price. We have April was above average for imported – down by 33.3 per cent the ditch at the right price-points other customers who deal in high- imports of used passenger vehicles on the same month in 2018.

USED IMPORTED PASSENGER VEHICLE ARRIVALS

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

11,000 2017 2018 10,000 2015 9,000 2016 2014 8,000 7,000 6,000

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

Used Imported Passenger Vehicles By Country Of Export

2019 2018 2017 COUNTRY OF EXPORT JAN ’19 FEB ’19 MAR ’19 APR ’19 APR MARKET SHARE % 2019 TOTAL Q1 Q2 Q3 Q4 2018 TOTAL SHARE 2017 TOTAL MRKT SHARE Australia 279 619 647 496 3.7% 2,041 1,170 1,054 950 1,009 4,183 2.9% 5,540 3.2% Great Britain 103 61 74 54 0.4% 292 280 229 235 282 1,026 0.7% 2,173 1.3% Japan 12,856 7,841 12,287 12,571 94.2% 45,555 26,715 48,862 28,646 30,287 134,510 94.2% 160,822 93.8% Singapore 142 175 163 158 1.2% 638 338 351 386 456 1,531 1.1% 1,202 0.7% USA 61 47 73 41 0.3% 222 281 287 265 275 1,108 0.8% 1,419 0.8% Other Countries 38 21 46 29 0.2% 134 153 80 73 109 415 0.3% 387 0.2% Total 13,479 8,764 13,290 13,349 100.0% 48,882 28,937 50,863 30,555 32,418 142,773 100.0% 171,543 100.0% Door-to-Door vehicle shipping experts To and from Japan, USa, UK, aUSTralia, Singapore, and The pacific Ph +64 9 303 0075 www.mmnz.biz ContaCt us today!

36 www.autofile.co.nz Slight decrease in dealer sales

pril was a slow month for Jasmit Singh, of Wholesale getting anything and other days they’re not getting as many trades sales of second-hand cars Autos in Takanini, South Auckland, we get the vehicles we want. as they used to,” says Keatley. by dealers to the public reports sales during the first four Overall, there’s not a big challenge “However, that’s not a problem Awith 16,394 units. months of 2019 have been similar getting late models and I’m getting for us. We stock Signature Class This compared to 16,878 in the to last year, but down compared the cars I want.” used vehicles, which are certified same month of 2019 for a drop of to 2017. Ian Keatley, branch manager imports or New Zealand-new.” 2.9 per cent. “My personal feeling is the of Botany Toyota in East Auckland, Andrew Collett, of Davie Motors There was a six per cent rest of this year will improve,” he says: “We get the odd hybrid Holden in Manukau, says there’s decrease in public-to-trader says. “It’s a tough market, but it’s vehicle traded-in, but mainly get no indication the business will be transactions from 13,689 to 12,863 still buoyant and we have to keep older, imported trades.” offered more trade-ins this year units, while private sales fell by 2.5 changing our strategies. We’re all High mileage and older trade- and it’s always looking for good- per cent to 40,603. selling in the same market so any ins are usually passed onto used- quality trades because “there are Oamaru notched up 39 dealer changes affect us all.” car dealers, while many buyers never enough”. sales for a 34.5 per cent increase Singh describes every day a have already sold their old vehicles The rate and type of trade-ins – the largest in percentage terms gamble to access the stock he on Trade Me when they approach his business is seeing is pretty – from 29 in April 2018. Invercargill requires, despite bidding on a lot the franchise for a new car. much unchanged from 2018, was runner-up with an 18.9 per of cars. “That’s a common problem for although we’re only one-third of cent rise. “Some days we don’t end up dealers around New Zealand – the way into 2019.

SECONDHAND CAR SALES - April 2019

DEALER TO PUBLIC PUBLIC TO PUBLIC PUBLIC TO DEALER APR ’19 APR ’18 +/- % MARKET SHARE APR ’19 APR ’18 +/- % APR ’19 APR ’18 +/- % Whangarei 595 580 2.6 3.63 1,899 1,907 -0.4 281 298 -5.7 Auckland 5,750 5,729 0.4 35.07 13,248 13,746 -3.6 4,975 5,107 -2.6 Hamilton 1,289 1,292 -0.2 7.86 3,204 3,226 -0.7 1,067 1,089 -2.0 Thames 277 311 -10.9 1.69 648 666 -2.7 178 182 -2.2 Tauranga 760 833 -8.8 4.64 2,012 2,034 -1.1 512 616 -16.9 Rotorua 375 357 5.0 2.29 923 1,026 -10.0 115 145 -20.7 Gisborne 134 127 5.5 0.82 368 369 -0.3 39 68 -42.6 Napier 603 632 -4.6 3.68 1,445 1,503 -3.9 439 417 5.3 New Plymouth 328 358 -8.4 2.00 898 965 -6.9 179 182 -1.6 Wanganui 227 247 -8.1 1.38 580 605 -4.1 183 155 18.1 Palmerston North 722 756 -4.5 4.40 1,555 1,482 4.9 1,025 1,300 -21.2 Masterton 204 198 3.0 1.24 471 483 -2.5 117 113 3.5 Wellington 1,417 1,502 -5.7 8.64 3,052 3,063 -0.4 941 1,169 -19.5 Nelson 265 322 -17.7 1.62 1,005 1,025 -2.0 159 215 -26.0 Blenheim 152 175 -13.1 0.93 449 455 -1.3 103 83 24.1 Greymouth 64 66 -3.0 0.39 166 174 -4.6 19 36 -47.2 Westport 8 9 -11.1 0.05 46 38 21.1 0 0.0 Christchurch 1,875 2,087 -10.2 11.44 4,933 5,166 -4.5 1,772 1,702 4.1 Timaru 184 194 -5.2 1.12 534 528 1.1 88 112 -21.4 Oamaru 39 29 34.5 0.24 112 120 -6.7 4 2 100.0 Dunedin 692 709 -2.4 4.22 1,998 1,973 1.3 415 467 -11.1 Invercargill 434 365 18.9 2.65 1,057 1,099 -3.8 252 231 9.1 NZ Total 16,394 16,878 -2.9 100.00 40,603 41,653 -2.5 12,863 13,689 -6.0

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

APR ’19 2019 YEAR 2019 MAR MKT 2019 YEAR 2019 MKT MAKE APR ’19 APR ’18 +/- % MAKE MODEL APR ’19 APR ’18 +/- % MKT SHARE TO DATE MKT SHARE SHARE TO DATE SHARE Toyota 1,112 712 56.2 16.4% 4,590 14.0% Toyota RAV4 525 107 390.7 7.7% 981 3.0%

Mazda 601 760 -20.9 8.9% 3,216 9.8% Kia Sportage 328 220 49.1 4.8% 1,319 4.0%

Hyundai 562 398 41.2 8.3% 2,202 6.7% Mazda CX-5 252 317 -20.5 3.7% 1,218 3.7%

Kia 537 511 5.1 7.9% 2,453 7.5% Suzuki Swift 231 245 -5.7 3.4% 1,090 3.3%

Suzuki 460 539 -14.7 6.8% 2,196 6.7% Hyundai Tucson 218 94 131.9 3.2% 693 2.1%

Mitsubishi 444 486 -8.6 6.6% 2,425 7.4% Nissan Qashqai 213 186 14.5 3.1% 738 2.3%

Nissan 365 354 3.1 5.4% 1,579 4.8% Toyota Corolla 193 170 13.5 2.8% 1,398 4.3%

Holden 325 540 -39.8 4.8% 2,102 6.4% Mitsubishi Outlander 188 140 34.3 2.8% 982 3.0%

Honda 305 317 -3.8 4.5% 1,966 6.0% Hyundai Santa Fe 146 110 32.7 2.2% 523 1.6%

Subaru 299 373 -19.8 4.4% 1,318 4.0% Mitsubishi ASX 143 83 72.3 2.1% 875 2.7%

Ford 273 312 -12.5 4.0% 1,641 5.0% Hyundai Kona 120 134 -10.4 1.8% 597 1.8%

Volkswagen 231 258 -10.5 3.4% 1,221 3.7% Suzuki Vitara 120 87 37.9 1.8% 411 1.3%

Mercedes-Benz 159 183 -13.1 2.3% 772 2.4% Nissan X-Trail 114 110 3.6 1.7% 553 1.7%

BMW 109 126 -13.5 1.6% 580 1.8% Subaru XV 103 141 -27.0 1.5% 472 1.4%

Skoda 107 116 -7.8 1.6% 452 1.4% Honda HR-V 97 52 86.5 1.4% 580 1.8%

Audi 98 140 -30.0 1.4% 486 1.5% Subaru Forester 93 28 232.1 1.4% 357 1.1%

Land Rover 90 60 50.0 1.3% 532 1.6% Ford Escape 91 45 102.2 1.3% 376 1.1%

Jeep 82 88 -6.8 1.2% 324 1.0% Toyota Highlander 87 67 29.9 1.3% 516 1.6%

SsangYong 76 42 81.0 1.1% 270 0.8% Honda Jazz 84 161 -47.8 1.2% 606 1.9%

Lexus 74 61 21.3 1.1% 296 0.9% Holden Commodore 83 107 -22.4 1.2% 553 1.7%

Mini 58 46 26.1 0.9% 236 0.7% Honda CRV 83 54 53.7 1.2% 539 1.6%

Haval 52 47 10.6 0.8% 207 0.6% Mazda Mazda3 82 160 -48.8 1.2% 555 1.7%

Volvo 46 51 -9.8 0.7% 239 0.7% Volkswagen Tiguan 79 126 -37.3 1.2% 512 1.6%

Porsche 43 20 115.0 0.6% 174 0.5% Mitsubishi Eclipse Cross 78 142 -45.1 1.2% 316 1.0%

Peugeot 42 84 -50.0 0.6% 305 0.9% Volkswagen Golf 78 63 23.8 1.2% 291 0.9%

MG 35 2 1,650.0 0.5% 38 0.1% Subaru Outback 74 145 -49.0 1.1% 349 1.1%

Jaguar 28 33 -15.2 0.4% 146 0.4% Mazda CX-3 71 80 -11.3 1.0% 364 1.1%

Renault 28 26 7.7 0.4% 104 0.3% Mazda Mazda2 70 96 -27.1 1.0% 370 1.1%

Citroen 19 25 -24.0 0.3% 95 0.3% Toyota Yaris 69 89 -22.5 1.0% 426 1.3%

Isuzu 19 20 -5.0 0.3% 84 0.3% Toyota C-HR 65 45 44.4 1.0% 318 1.0%

Tesla 15 30 -50.0 0.2% 61 0.2% Mazda CX-9 65 81 -19.8 1.0% 328 1.0%

Seat 14 8 75.0 0.2% 51 0.2% Toyota Prius C 59 27 118.5 0.9% 188 0.6%

Alfa Romeo 12 8 50.0 0.2% 57 0.2% Kia Rio 59 66 -10.6 0.9% 324 1.0%

Maserati 9 10 -10.0 0.1% 27 0.1% Holden Equinox 56 71 -21.1 0.8% 317 1.0%

Yamaha 6 5 20.0 0.1% 24 0.1% Holden Trax 51 50 2.0 0.8% 272 0.8%

Others 43 57 -24.6 0.6% 254 0.8% Others 2,310 2,949 -21.7 34.1% 12,416 37.9%

Total 6,778 6,848 -1.0 100.0% 32,723 100.0% Total 6,778 6,848 -1.0 100.0% 32,723 100.0%

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships April 2019 ( vs March 2019) S S Web - Classified 11.7% Web - Dealer 16.3% S Web - Dealer 11.7% T E E D S V

Web - Dealer Direct L Web - Classified A 11.5% I 40.6% 12.6% E A R E

L Brand 5.9% T D Web - Classified 32.4% S Repeat 15.2% Smart Digital Tools

38 www.autofile.co.nz Marque set for electric in-roads

ew Zealand will become based on projected demand and interest lift as more Kiwis have with 40,010 units sold here up to one of the first non- its ability to get better terms with had the chance to experience March 31. government subsidised suppliers. the performance of this next- Neeraj Lala, general manager of Nelectric-vehicle (EV) markets “While there are no subsidies for generation EV.” product and new-vehicle sales, says globally to take delivery of the new EVs here, we’re working to negotiate As for new models boosting the range will include the debut of I-PACE when it lands in the coming better pricing – something that sales, especially in New Zealand’s a hybrid powertrain. months. wouldn’t be possible without a loyal burgeoning SUV market, Kia “This new RAV4 is poised, once Steve Kenchington, general customer base.” has lifted the lid on its future by again, to change the game in our manager of Jaguar NZ, believes The past financial year was the unveiling its SP Signature concept. medium-sized SUV market,” he says. its pricing structure signals an marque’s best in New Zealand and It hints at a compact SUV expected “The hybrid version will lead the intention to take a significant share saw sales volume eclipse other on our shores in late 2019 for the way with its tow rating and fuel of the emerging premier EV market premium German marques for the 2020 model year. efficiency.” and make the model accessible to first time. As demand continues to swing It continues the electrification as many Kiwis as possible. Kenchington says a range in favour of compacts, the concept of Toyota’s total range of models, The marque has slashed prices of factors influence local I-PACE is the marque’s first foray into this which are all expected to offer an for its I-PACE SUV by $15,000. The demand, including growing segment with its styling targeted electrified option by 2025. range now starts at $144,900 for interest in Formula E and towards younger buyers. As for April’s market, total the S variant, $154,900 for the SE Aucklander Simon Evans taking out Todd McDonald, managing registrations of new passenger and $164,900 for HSE. They also the inaugural I-PACE e-Trophy race director of Kia Motors NZ, says: vehicles and SUVs dropped by one apply to pre-purchases. in Saudi Arabia earlier this year. “Interest in the small SUV segment per cent – or by 70 units to 6,778 – Kenchington says: “One of On top of that, the EV has scooped has been growing and our dealer on April 2018’s volumes. the challenges we’ve faced when numerous awards, including world network is looking forward to the The RAV4 was the month’s establishing a new category is car of the year. arrival of the production version of best-selling with 525 units. It was ensuring our price-point is aligned He believes the model the SP Signature.” followed by the Kia Sportage on 328 with market expectations and represents an evolution in EV Toyota NZ is confident the units and Mazda’s CX-5 with 252. other premium EVs. technology and is one of the fifth-generation RAV4 “will build Toyota topped the marques “What we’ve seen since the most exciting the marque has on its 25-year legacy by redefining ladder with a 16.4 per cent share I-PACE was announced here is introduced in recent years. the segment it created”. It’s New of the market and 1,112 units. It that market dynamics operate “In recent weeks, we’ve seen Zealand’s biggest volume SUV was followed by Mazda on 8.9 per differently compared to countries cent thanks to 601 registrations, where EV incentives are in place. New Passenger Registrations - 2016-2019 and Hyundai on 8.3 per cent with Yet this hasn’t hampered demand 12,000 562 units. for this model.” As for the overall market – Jaguar has already pre-sold 11,000 when combining sales of new more I-PACEs in New Zealand passenger and commercial vehicles than in countries with much 10,000 – registrations in New Zealand last higher population densities, such month grew by two per cent, or by as Singapore, Japan and South 217 units, when stacked against 9,000 Korea – all before the first customer the same month of 2018. vehicles have landed. There were 10,640 new vehicles 8,000 “What this tells us is there’s an sold last month, which continued opportunity for Jaguar to take a 2016 the up-and-down monthly trend substantially larger share of this 7,000 2017 for 2019. The overall market to the category,” says Kenchington. 2018 end of last month was down by 2.5 2019 He adds Jaguar NZ operates as 6,000 per cent on the first four months the distributor, and pricing is often Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec of 2018.

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships April 2019 ( vs March 2019) S S Web - Classified 11.7% Web - Dealer 16.3% S Web - Dealer 11.7% T E E D S V

Web - Dealer Direct L Web - Classified A 11.5% I 40.6% 12.6% E A R E

L Brand 5.9% T D Web - Classified 32.4% S Repeat 15.2% Smart Digital Tools

www.autofile.co.nz 39 Similarities between two markets

irrored trends are being as “one of our big projects”. New Commercial Sales - 2016-2019 seen between New He says: “We’re involving 6,000 2016 Zealand and Australia 2017 everyone in the planning from Mwith ute sales booming to both. 5,500 2018 internal staff and our dealer 2019 “It’s a bit different in the 5,000 network to any resources we can percentages of the markets that leverage from Australia. 4,500 utes occupy because this country “We’ve developed one of our still has a large number of used 4,000 most comprehensive plans for the imports coming in, which Australia Colorado in terms of making it 3,500 doesn’t have,” says Marc Ebolo, exciting, showing what the truck managing director of Holden NZ. 3,000 is capable of and setting a path for “But, in overall trends, we’re some good sales this year. 2,500 seeing similar things in both Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec “We have an aggressive target for countries with the growth of new it in 2019 and have spent six months utes and SUVs, and a decline in you were driving a farmer’s truck. models and more being developing plans to get us there.” passenger cars.” Interiors are far now more refined accessorised. Everyone expects Last month was the strongest Ebolo predicts utes will and they’re becoming ultimate that trend to continue.” month of April on record for sales become more car-like with each crossover vehicles. Holden NZ is looking to grow of new commercials, which came generation. “It’s not like it was 10 “We’re starting to see more on its Colorado volumes in 2019, in at 3,862 – eight per cent ahead to 15 years ago when you felt like driveways, more top-specification which Ebolo describes to Autofile April 2018’s total of 3,575.

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

MAR ’19 2019 YEAR 2019 MAR ’19 2019 YEAR 2019 MKT MAKE APR ’19 APR ’18 +/- % MAKE MODEL APR APR +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Ford 865 803 7.7 22.4% 3,553 21.1% Ford Ranger 760 745 2.0 19.7% 3,146 18.7% Toyota 694 598 16.1 18.0% 2,842 16.9% Toyota Hilux 542 457 18.6 14.0% 2,243 13.3% Mitsubishi 465 258 80.2 12.0% 2,010 11.9% Mitsubishi Triton 464 258 79.8 12.0% 2,008 11.9% Holden 403 312 29.2 10.4% 1,551 9.2% Holden Colorado 401 306 31.0 10.4% 1,523 9.1% Nissan 268 268 0.0 6.9% 1,266 7.5% Nissan Navara 268 268 0.0 6.9% 1,265 7.5% Isuzu 254 281 -9.6 6.6% 1,091 6.5% Mazda BT-50 154 133 15.8 4.0% 797 4.7% Mazda 154 133 15.8 4.0% 797 4.7% Isuzu D-Max 151 205 -26.3 3.9% 685 4.1% Volkswagen 78 122 -36.1 2.0% 458 2.7% Toyota Hiace 136 120 13.3 3.5% 500 3.0% LDV 73 144 -49.3 1.9% 497 3.0% Ford Transit 105 58 81.0 2.7% 407 2.4% Mercedes-Benz 68 101 -32.7 1.8% 339 2.0% Fiat Ducato 57 60 -5.0 1.5% 217 1.3% Hino 62 54 14.8 1.6% 234 1.4% Volkswagen Amarok 56 58 -3.4 1.5% 252 1.5% Fuso 58 47 23.4 1.5% 281 1.7% Hyundai iLoad 48 43 11.6 1.2% 303 1.8% Fiat 57 60 -5.0 1.5% 218 1.3% Isuzu F Series 43 33 30.3 1.1% 186 1.1% Hyundai 52 44 18.2 1.3% 317 1.9% Isuzu N Series 42 23 82.6 1.1% 130 0.8% SsangYong 37 28 32.1 1.0% 149 0.9% SsangYong Rhino 37 0 3,700.0 1.0% 140 0.8% Foton 28 41 -31.7 0.7% 109 0.6% Mercedes-Benz Sprinter 33 45 -26.7 0.9% 133 0.8% Great Wall 27 14 92.9 0.7% 123 0.7% LDV V80 31 39 -20.5 0.8% 187 1.1% UD Trucks 27 17 58.8 0.7% 87 0.5% Hino 300 28 18 55.6 0.7% 74 0.4% Iveco 26 28 -7.1 0.7% 100 0.6% Great Wall Steed 27 14 92.9 0.7% 123 0.7% Kenworth 23 28 -17.9 0.6% 102 0.6% Hino 500 25 26 -3.8 0.6% 129 0.8% Others 143 194 -26.3 3.7% 699 4.2% Others 454 666 -31.8 11.8% 2,375 14.1% Total 3,862 3,575 8.0 100.0% 16,823 100.0% Total 3,862 3,575 8.0 100.0% 16,823 100.0%

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

SPEED, SERVICE, VALUE & INDEPENDENCE

40 www.autofile.co.nz Sales matching 2018’s levels here were 848 used experience that again.” commercials sold in April 1,300 Used Commercial Sales - 2016-2019 Tony Woods, director of – a 2.4 per cent jump on Greenwoods Cars and 4x4s in 1,200 AprilT 2018’s total when 828 were Penrose, Auckland, says buying registered. 1,100 vehicles locally is hard and the Last month’s result brought right contacts are needed “because 1,000 the year-to-date total to 3,794, an it’s very difficult to get the stock increase of 19 units compared to 900 you want”. last year’s first four months. “The whole industry is changing 800 Toyota remained on top with 2016 month by month now especially 2017 381 sales and its Hiace was first 700 2018 when things happen, such as the on the models ladder with 289 2019 cost of fuel going up,” he says. 600 registrations. “People were using that as an Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jasmit Singh, of Wholesale excuse not to purchase V6s and Autos in Takanini, says it has been are definitely more than what we two-and-a-half years ago when I V8s, but now fuel prices have come tough lately getting the electric were paying early last year,” he says. was offered some vans,” he told down they want to buy them. vehicles he wants with rising prices Singh will not be looking at Autofile. “You roll the dice daily when being among the challenges. other markets, such as Australia “It seemed like a good deal, but it comes to stock because when “We have a shipment arriving in and the UK, for used imports. they weren’t anywhere near the you buy a vehicle, you’re hoping to May so I’m getting them, but prices “I had a bad experience about quality I wanted so I do not want to make a margin on it.”

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

MAR ’19 2019 YEAR 2019 MAR ’19 2019 YEAR 2019 MKT MAKE APR ’19 APR ’18 +/- % MAKE MODEL APR ’19 APR ’18 +/- % MKT SHARE TO DATE MKT SHARE MKT SHARE TO DATE SHARE Toyota 381 389 -2.1 44.9% 1,716 45.2% Toyota Hiace 289 286 1.0 34.1% 1,314 34.6% Nissan 209 174 20.1 24.6% 846 22.3% Nissan Caravan 65 44 47.7 7.7% 272 7.2% Mazda 44 35 25.7 5.2% 195 5.1% Nissan NV200 47 33 42.4 5.5% 179 4.7% Isuzu 37 54 -31.5 4.4% 163 4.3% Toyota Dyna 37 35 5.7 4.4% 153 4.0% Ford 34 38 -10.5 4.0% 176 4.6% Mazda Bongo 33 30 10.0 3.9% 141 3.7% Hino 34 30 13.3 4.0% 152 4.0% Nissan Vanette 31 29 6.9 3.7% 102 2.7% Mitsubishi 25 22 13.6 2.9% 109 2.9% Nissan NV350 30 26 15.4 3.5% 134 3.5% Holden 18 11 63.6 2.1% 64 1.7% Toyota Regius 27 27 0.0 3.2% 114 3.0% Chevrolet 11 13 -15.4 1.3% 64 1.7% Hino Dutro 24 15 60.0 2.8% 102 2.7% Fiat 10 4 150.0 1.2% 79 2.1% Isuzu ELF 21 23 -8.7 2.5% 114 3.0% GMC 6 1 500.0 0.7% 14 0.4% Nissan Atlas 20 18 11.1 2.4% 87 2.3% Suzuki 6 2 200.0 0.7% 28 0.7% Ford Ranger 17 18 -5.6 2.0% 49 1.3% Mercedes-Benz 5 8 -37.5 0.6% 11 0.3% Mitsubishi Canter 14 8 75.0 1.7% 70 1.8% Hyundai 4 0 400.0 0.5% 8 0.2% Toyota Toyoace 13 16 -18.8 1.5% 66 1.7% UD Trucks 4 1 300.0 0.5% 9 0.2% Fiat Ducato 10 4 150.0 1.2% 79 2.1% Daihatsu 3 8 -62.5 0.4% 16 0.4% Isuzu Forward 10 17 -41.2 1.2% 30 0.8% Volkswagen 3 5 -40.0 0.4% 28 0.7% Nissan Navara 9 11 -18.2 1.1% 36 0.9% Peugeot 2 0 200.0 0.2% 7 0.2% Mazda Titan 9 2 350.0 1.1% 33 0.9% Volvo 2 1 100.0 0.2% 14 0.4% Holden Colorado 8 4 100.0 0.9% 29 0.8% Alexander Dennis 1 0 100.0 0.1% 1 0.0% Ford F150 8 4 100.0 0.9% 30 0.8% Others 9 32 -71.9 1.1% 94 2.5% Others 126 178 -29.2 14.9% 660 17.4% Total 848 828 2.4 100.0% 3,794 100.0% Total 848 828 2.4 100.0% 3,794 100.0%

www.moana-blue.com 0800 MOANA BLUE (0800 662 622)

www.autofile.co.nz 41 Company expands to fulfil demand

he largest Australasian- products, parts and services to we represent and customers. of Botany Toyota, which opened on owned independent more than 100 dealers in Australia “It’s a clear and unequivocal March 11 says new-car sales have automotive distribution and New Zealand through sign of the group’s commitment continued to outstrip used. companyT has shifted its its Sydney base office, which to the industry in New Zealand, “There has been a lot of headquarters to meet growing complements its operation in Australia and South Africa.” interest from the community with demand for products made by its Mount Wellington, Auckland. As for last month’s statistics, people dropping in to see what marques. Its relocation means it now importations of new cars dropped the finished premises looks like The Ateco Group has moved to has triple the space for training by 22.3 per cent in April when because they have watched it a site with new offices, training and purposes, including technical areas compared to the same month of being built. warehouse facilities to futureproof with hoists, tools and equipment. last year. The total was also down “We’ve been lucky with the new supply of stock to New Zealand, Typically, the company provides by 9.2 per cent on March. RAV4 being launched in April. It has Australia and South Africa. up to 40 hours’ training per There were 7,978 new gone well with our customers.” Neville Crichton, executive technician for the launch of each passenger vehicles imported last He adds the Limited Hybrid chairman, says the rapid growth new model into Australasia, as well month, while new car registrations variant has retailed well across New of LDV, and the development of as coaching in sales and marketing. fell by 19.5 per cent compared to Zealand and sold out within three Maserati and RAM, resulted in the “Our multi-million-dollar move March, but the total was down weeks of being launched with company outgrowing its previous to Lidcombe represents the largest by only one per cent on the same demand huge in East Auckland. premises. investment Ateco has made in month of last year. Keatley has waiting lists for the “The new facility enables us to facilities over the past 35 years,” That left a 1,200-unit variance hybrid and GXL, although petrol- provide support services for sales says Crichton. to bring the number of unsold new powered RAV4 stock is still available. and training at a level that will “But this level of investment stock sitting on dealers’ yards or in “When petrol prices went up match sales growth, and meet the is essential in order to ensure we storage facilities to 81,443 – or just last year, Camry hybrid and Prius demands of a changing market.” provide a benchmark quality of over nine months’ supply. sales took off. Corolla hybrid sales The company now provides service to our dealers, the brands Liam Keatley, branch manager have also taken off this year.”

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

CAR SALES DAILY SALES DAYS VARIANCE STOCK - 12-MONTH STOCK 280 IMPORTED REGISTERED AVERAGE AT HAND

Apr ‘18 10,268 6,848 3,420 73,810 297 249 260 April 2018 — April 2019 May ‘18 12,102 9,275 2,827 76,637 299 256 Jun ‘18 10,138 9,725 413 77,050 298 259 240 Jul ‘18 11,503 8,040 3,463 80,513 299 269 Aug ‘18 11,175 8,639 2,536 83,049 299 278 220 April 2017 — April 2018 Sep ‘18 10,382 9,431 951 84,000 298 282 200 Oct ‘18 9,921 11,765 -1,844 82,156 300 274 Nov ‘18 7,820 9,543 -1,723 80,433 298 270 180 Dec ‘18 9,317 7,681 1,636 82,069 296 277 Jan ‘19 7,462 9,942 -2,480 79,589 294 271

Days of stock Days 160 Feb ‘19 7,875 7,578 297 79,886 295 271

Mar ‘19 8,782 8,425 357 80,243 293 274 140 Apr ‘19 7,978 6,778 1,200 81,443 293 278

Year to date 32,097 32,723 (626) 120 Change on last month -9.2% -19.5% 1.5% 0 Change on Mar 2018 -22.3% -1.0% 10.3% OCT SEP JUL JAN FEB NOV APR DEC AUG JUN APR MAY LESS IMPORTED LESS SOLD MORE STOCK MAR

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42 www.autofile.co.nz Costs eating into margins ar dealers have been “We’ve noticed a drop in the He adds there aren’t many other “We had some customers from steering away from volume of used imports,” says markets that dealers can purchase outside the city come in over Easter importing used vehicles Willett. “Although it’s starting to from with our country being right- to buy cars,” he says. “It’s a general Cto stock yards because supply- now pick up, dealers have reported hand drive. perception businesses close during chain costs have been decreasing to our reps that although they’re “We also have a complex and the holidays, but for us they aren’t a margins. not importing as many cars as they stringent compliance regime, so big issue and we still sell.” Frank Willett, chief executive were, they’ve substituted stock it’s not every right-hand market Last month there were 13,349 officer of Autohub NZ, says his on yards by buying trade-ins from that can supply us with good used cars imported to New Zealand. company has been getting a lot franchises or vehicles privately volumes of used cars that meet our This was down by 31.3 per cent on of feedback from traders – who offered to them for sale. standards,” says Willett. “There are the same month of last year when mostly deal in “bread and butter” “That’s because, at the end of the only a few markets available to us.” 19,438 units crossed the border. used imports from Japan – day, they are finding there are less Nick Owens, of Auto Inspection Registrations of used passenger struggling to on-sell at a profit. costs involved with these vehicles Services in Christchurch, noticed vehicles dropped slightly to 10,883 “You can appreciate importers and there’s more of an appetite for buying conditions appeared hard units, which was a decrease of 0.1 aren’t happy with any increased someone to buy them with finance. when he recently went to Japan on per cent, or by 10 units, on April costs, be that in a buoyant market It’s just a matter of stock that’s business. 2018’s total. or a flat market like it is now,” he coming from a different place.” He says it was tricky to source When taking into account last told Autofile. Willett also points to recent suitable stock for the Kiwi market, month’s used-car imports minus Every time there’s an increase in decreases in immigration levels although his compliance centre has registrations, there was a variance costs – such as shipping rates going as affecting sales, and rental been quite busy so far this year. of 2,466 units for an increase of up or heat-treatment charges for companies could be updating Jasmit Singh, manager of stock on-hand to 33,158. stock coming in from Japan during fleets, which would bring more Wholesale Autos in Takanini, South There are now 84 days’ stock on- the stink-bug season – it’s difficult for second-hand New Zealand-new Auckland, reports April as being a hand, or 2.8 months’ worth if sales dealers to cope with. cars onto the market. good month. continue at the same rate.

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

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

160 Apr ‘18 19,438 10,893 8,545 34,476 444 78 May ‘18 15,464 13,420 2,044 36,520 441 83 140 Jun ‘18 15,961 12,651 3,310 39,830 439 91 Jul ‘18 11,028 13,847 -2,819 37,011 438 85 120 Aug ‘18 10,282 13,368 -3,086 33,925 434 78 Sep ‘18 9,245 11,533 -2,288 31,637 429 74 100 April 2018 — April 2019 Oct ‘18 8,669 12,100 -3,431 28,206 423 67 Nov ‘18 11,301 11,156 145 28,351 413 69 80 Dec ‘18 12,448 11,061 1,387 29,738 404 74 Jan ‘19 13,479 11,598 1,881 31,619 399 79 60 Days of stock Days April 2017 — April 2018 Feb ‘19 8,764 11,129 -2,365 29,254 396 74

40 Mar ‘19 13,290 11,852 1,438 30,692 396 77 Apr ‘19 13,349 10,883 2,466 33,158 396 84

20 Year to date 48,882 45,462 3,420 Change on last month 0.4% -8.2% 8.0%

Change on Mar 2018 -31.3% -0.1% -3.8% OCT SEP JUL JAN FEB NOV APR DEC AUG JUN APR MAY MAR LESS IMPORTED LESS SOLD LESS STOCK

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