www.autofile.co.nz February 2019

The trusted voice of the auto industry for more than 30 years Biosecurity measures Specialised for bugs ‘ineffective’ training that’s proven to The New Zealand and Australian governments are being urged increase profits to ‘engage with industry to find solution’ and prevent crisis p 6 global shipping company has described the government’s measures Ato prevent stink bugs invading New Zealand as ineffective and Support for risk ratings inconsistent. Wallenius Wilhelmsen Ocean p (WWO) is calling for the Ministry 12 for Primary Industries (MPI) and its Australian equivalent to urgently introduce new biosecurity regulations or face putting the Commission charges economies of both countries at risk. WWO’s Morning Lynn motor-vehicle trader It says more action is needed to minimise the risk of brown WWO says infestations of BMSBs Wallenius Wilhelmsen, believes marmorated stink bugs (BMSBs) found on vessels en-route down the BMSB has migrated from East becoming established and to under are causing havoc with local Asia to the US, Canada and Europe eliminate delays to imports. supply chains. causing massive damage to crops, During the current high-risk It reports bugs are breeding, and there’s a danger of it spreading. season, two WWO roll-on roll-offs, ships are re-routing, trucks are It wants the MPI and Australia’s Los Angeles the Morning Lynn and Carmen, laying idle, supply chains are Department of Agriculture and p 16 show highlights have been among five vessels collapsing and costs are escalating Water Resources (DAWR) to take turned away from Auckland for in Australia – similar to the chaos action following delays to cargo p 20 treatment offshore before being seen in New Zealand early last year. shipped to both countries. allowed back to discharge cargo. And it’s not just car carriers that To prevent BMSBs from The Thalatta then became the are at risk. So are box ships, break- entering New Zealand and company’s third ship to be affected bulk vessels and other general Australia, cargo must be free Stephen Glading when it had to leave Fremantle, cargo carriers. of contamination – particularly reflects on career Western Australia. WWO, which is a division of live insects – and treated before

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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 Political will needed

Directors Editor Brian McCutcheon Darren Risby to front the charge [email protected] [email protected] ph. 021 455 775 Journalists Mark Gilbert asks if the next few years will Darren Wiltshire Sue Brebner-Fox [email protected] [email protected] ph. 021 0284 7428 trigger the shift to electric cars in New Zealand Lucy Pink [email protected] Designer ’m jolly following the is quite a large car. Adrian Payne Motorsport festive period and Autolink Cars’ owner, [email protected] Mark Baker [email protected] electrified having Henry Schmidt, reliably watchedI the Evans boys informs me he can get 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. do the business in the a set of golf clubs in the Back copies are also available on the website. first Formula E event of trunk without having Copyright: Published monthly by 4Media Ltd, their season. to fold the rear seats PO Box 6222, Dunedin 9059. It’s a great down. This fact was a MARK GILBERT All statements made, although based on information believed competition and I hope Chairman, Drive Electric consideration for larger to be accurate and reliable, cannot be guaranteed, and the group working on passenger cars, so a no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or a New Zealand round gets the useful added benefit. part without written permission, whether by copying or any support needed to make this The Tesla 3 plan is harder other means, is strictly forbidden. happen on Auckland’s waterfront. to predict. When the car was All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) It would be spectacular. announced, Tesla took deposits I’m excited further by what from interested buyers. How many appears to be a strong movement orders came from New Zealand towards the “tipping point” many isn’t widely known, but if right- talk about in regards to electric hand-drive (RHD) deliveries start vehicles (EVs). in 2019 and there’s evidence they Vehicle Inspection NZ With most of the main will, its numbers will likely soar. automotive players in the world What would make me even announcing new electric car more jolly and electrified is for models with improved ranges, our coalition government to Entry Certification we should also anticipate more clearly state what it’s planning to competitive pricing with Nissan, do to support the uptake of EVs. specialists Mitsubishi and the Renault Drive Electric recently Alliance already stating this. supported Norwegian EV In New Zealand, Mitsubishi’s supremo Christina Bu’s visit to Outlander and Hyundai’s Kona are New Zealand. Her parting shot great vehicles. They sit in the volume was to call for political will – EVs SUV market and are well-priced. can help fast-track actions to And there are some exciting address climate change and lower new models due for launch this CO2 emissions. year, which will be competitively But there isn’t anything coming priced to grow the EV market out of Wellington except soundbites share, such as Volkswagen’s e-Golf, through phrases such as “vision Nissan’s Leaf and the Tesla 3. carbon zero by 2050”, “feebate The VW Group has been scheme” and “emission testing”. particularly bullish with plans The Productivity Commission’s for electric cars. Add this to report is well-worth the read, but messages coming from Ford, would be even better if actioned. • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges General Motors, Mercedes-Benz, With numerous countries – • Registration & relicencing • Exhaust emission testing BMW and Audi, and the segment including the world’s biggest RHD is about to light up. market, the UK – signalling the Nissan NZ is evaluating end of fossil-fuel vehicles by 2035, 0800 GO VINZ VINZ.CO.NZ Tel: +64 9 825 0888 www.jacanna.co.nz the latest Leaf model, which what’s New Zealand planning? www.autofile.co.nz 3 news

[continued from page 1] loading if from a high-risk country. Association (MIA) reported in the DAWR to engage with industry to t WWO says ensuring compliance January issue of Autofile, and find a solution that will be effective is the importer’s responsibility, supply-chain experts, including before the next BMSB season in while the presentation of clean other shipping companies. September. If no solution is found, cargo at the port of loading is The MIA believes South Korea the result could be devastating for down to the shipper. and China will, at some stage, economies.” But Simon White, WWO’s head need to be added to schedule WWO has outlined its areas for of commercial, says biosecurity three of the MPI’s import health action to the Kiwi and Australian measures in both countries aren’t standard (IHS) for vehicles, governments. While cargo from high- good enough because “they are which stipulates how cargo must risk countries must be treated in-line neither consistent nor effective”. be shipped. There are strong with biosecurity requirements before “We ensure all cargo we’re suspicions BMSBs have hitched loading, the company says cargo loading is in accordance with the rides from these two countries. from neighbouring jurisdictions Simon White, WWO’s head of commercial regulations, and go over and above Thailand, a major exporter of – some of which are known stink- that,” he adds. new vehicles to New Zealand, and pathways from factory to ship. bug sources – aren’t covered by “The fact stink bugs are still neighbouring Malaysia, where stink WWO insists it’s committed regulation. being found on cargo when it bugs are endemic, are also absent to doing all it can to protect New It says criteria for classifying a arrives in New Zealand is a serious from schedule three. Zealand’s and Australia’s borders country “high risk” have yet to be sign the regulations, as they stand, The 16 countries on that IHS from biosecurity threats, and defined by the MPI and DAWR, aren’t fully effective. In that sense, list are Austria, Bulgaria, France, works “diligently” with the MPI and and they have failed to align more countries should be included Georgia, Germany, Greece, DAWR to encourage “consistent themselves on what countries in the regulation.” Hungary, Italy, Liechtenstein, and effective regulation” to limit are high risk and on acceptable White singles out Europe, which Romania, Russia, Serbia, Slovenia, BMSBs spreading. treatment methods. he describes as one land mass, as Spain, Switzerland and the US. “Regrettably, the current WWO also believes the a serious example. “Not to trivialise The tightest rules for vehicles regulations pose a risk to the implementation of current rules it, but stink bugs do not reflect or in place are for those from Japan. agricultural industry while delaying is inconsistent between different respect borders.” All used imports must be heat- cargo essential to many sectors of transport modes. For example, if The WWO’s concerns follow treated prior to loading, while new the economy,” says White. live or dead BMSBs are detected those of the Motor Industry vehicles must follow MPI-approved “We appeal to the MPI and on a roll-on roll-off, the entire  Directors quit board

hree directors of the year. I’m looking forward to NZTA’s board have working with new directors and an independent choice resigned less than two senior leaders to meet these monthsT after chief executive challenges.” Fergus Gammie’s departure. The agency’s board members Quest Insurance offers: Dame Fran Wilde, deputy are appointed by the Minister of chairman, was due to leave at Transport, but Phil Twyford has Mechanical Breakdown Insurance the end of January, while board no official role in departures. “It’s – backed by AA Roadside Assist members Adrienne Young- understandable there may be Comprehensive Motor Vehicle Insurance Cooper and Chris Ellis left some board movements during – including learner and restricted license cover. unannounced last month. this period,” he says. Weekly, fortnightly & monthly instalment options now The agency is under Meanwhile, the agency has available to match your customers pay cycle review about its enforcement of extended the expiry date for transport regulations, including vouchers provided to owners of Guaranteed Asset Protection around 20,000 vehicles needing vehicles inspected by suspended Lifestyle Protection Insurance warrants of fitness (WOF) retests. WOF providers to March 31. In turn, the Ministry of Steve Haszard, managing Transport is having its handling partner at Meredith Connell, of the NZTA reviewed. which is leading the NZTA “There has been significant review, says: “All owners have change in recent months, a responsibility to ensure their and – as a consequence – vehicles are up to WOF standard If you are a forward thinking motor vehicle trader, or financier, this is leading to board and on the road. looking for a trusted vehicle insurance partner, call Quest. senior management changes,” “We can’t legally compel says Michael Stiassny, board owners to get them rechecked, Contact: Simon Moore chairman. but it’s important they ph. 021 149 2266 “Some significant decisions understand they may not have e: [email protected] and actions are ahead this been properly inspected.”

4 www.autofile.co.nz news

treatment was needed before t vessel is subject to scrutiny. has to discharge its cargo in an Vessels’ movements permission was granted to offload White says this often leads alternative port for treatment and WWO’s Carmen, pictured, first all cargo. to delays of days or even weeks then return, we’re talking about arrived in Auckland on November When biosecurity threats are while their detection in a shipping multi-millions of dollars.” 28 and finally left for Noumea on found, Biosecurity NZ monitors container is generally limited to that Shipping companies are January 21. The Morning Lynn left the controlled discharge of vessels single unit, and air freight doesn’t responsible for presenting clean for Brisbane on January 3 after when they return. The MPI says receive the same level of scrutiny cargo, but it’s up to customers to initially getting to Auckland on verification approaches to ensure despite reported cases of infestation. ensure regulations put in place by December 29. vehicles are not contaminated The DAWR has suggested the MPI are adhered to, and provide There were vehicles on-board include heat treatment, checks carriers refuse untreated cargo from documentation and proof of that. both vessels, which loaded in by detector dogs, use of agitation countries not classified high risk “Responsibility goes across the Europe and the US, and sailed spray insecticide and intensive rather than expanding regulation, board for shipments on our vessels,” via the Panama Canal. Off-shore inspection by officers. but WWO says this would create an explains White. “Cargo has to be untenable situation with carriers presented free of contamination required to adopt practices out of and any bugs. We ensure all loading step with legislation. is done in accordance in the The company has backed the regulations. And we go above that.” Freight & Trade Alliance, which Damien O’Connor, the is calling for an independent Minister for Biosecurity, says the highest standards of biosecurity, prohibited from discharging in investigation, and is encouraging government is taking action. informs customers about regulations November and December, which its customers to lobby the “I’ve asked Biosecurity NZ to and only accepts cargo certified as resulted in a need to fumigate authorities directly or through take a fresh look at facilities where treated. It also monitors cargo and outside Australia and New Zealand. industry associations. Subjects containers of imported goods are reports findings of suspected bugs. “BMSB is an industry-wide should cover increasing the emptied and checked for risks,” “This season, group companies problem. Wallenius Wilhelmsen, alignment of BMSB risk areas, he adds. “I have also asked it to have had instances of bugs on- with other shipping companies treatment windows and seasons. investigate new ways of dealing board. In most cases, fogging and importers, is working with WWO wants the MPI and DAWR with the increasing threat posed by and follow-up in-line with official authorities to enhance biosecurity to allow the development and use the BMSB and other emerging risks. instructions has been sufficient. through more robust regulation  of near-shore or on-shore treatment “We must ensure the biosecurity “However, three vessels were and consistent enforcement.” solutions – while they control the risk is as far off-shore as possible. We rules for shipping cargo, they “don’t will work with industry to make sure take accountability or provide every part of the system is bolstered support if they aren’t effective”. so it’s agile enough to deal with new “As long as shippers have threats as they emerge. complied with MPI and DAWR rules, “We’re doing this after a stink and there are still insects detected bug was found in Tauranga late A wide range on arrival in Australian and New last year. There are 29 transitional Zealand waters, the authorities facilities handling imports within two should establish options for remedial kilometres of where it was found. treatment on arrival,” says White. “These facilities are dotted of quality He also wants increased around ports and airports, and are engagement with exporters a key component of New Zealand’s and importers by the regulators biosecurity infrastructure. vehicles analysing supply chains to ensure “They are on the front-line for BMSBs and other pests don’t keeping out unwanted pests that contaminate cargo in the first place, could destroy our crops, cost our including an import questionnaire economy billions of dollars. We will and screening at the start of the do what it takes to keep pests like cargo’s life cycle “as opposed to the BMSB from establishing here.” three days before vessel arrival”. Wallenius Wilhelmsen, WWO’s In addition, WWO is calling for parent company, highlighted BMSB lobbying to introduce “consistent issues in mid-December after its regulations and application of Australasian services were disrupted. regulations across all vessel types “To prevent transfer of the bug, and transport modes”. import restrictions are in place The stink-bug crisis cost WWO between September 1 and April ALL INCLUSIVE GST INVOICE IN $NZ AVAILABLE about NZ$4.2 million in the fourth 30, and surveillance activities quarter of the past financial year. are increased to monitor vessels “That was the net magnitude of arriving from the US, Japan and the impact to us. Each vessel delayed certain European countries,” it says. autoportalauctions.com CREW with PASSION runs into hundreds of thousands “Wallenius Wilhelmsen is NZ office - contact Tada: 09-571-2063 or 0800-428-2728 of dollars. 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www.autofile.co.nz 5 news Industry against scrapping ratings

our organisations in the people better up-front information.” young or poorer people unfairly motor-vehicle industry He has given no indication what pay more in ACC vehicle levies have criticised the decision that may be, while the VRR has because they are more likely to Fto scrap vehicle risk-ratings (VRR) been “challenging to administer”. drive older and unsafe cars. with some calling for a system to While it may be “challenging” “But safe cars do exist in lower replace it with something else at for the government to run, the price brackets,” he stresses. “In point of sale. system proved problematic to get fact, the NZTA was promoting the The government plans to scrap up and running in the first place. high safety rating of cars around the programme, which applies ACC experienced so many the $5,000 mark at the Trafinz four different bands of ACC levies issues setting up the VRR a Conference in November. to passenger vehicles based on few years ago that it formed a “The government noted safety ratings, on July 1. “motor-vehicle expert group” there was no evidence the VRR The scheme was introduced to help. The AA, Motor Industry influenced purchasing decisions. under National, but Iain Lees- Association (MIA), Motor Trade However, this information will Galloway, Minister for ACC, claims Association (MTA) and VIA (the Iain Lees-Galloway says the government only influence people if they are there’s no evidence levies based on Imported Motor Vehicle Industry will invest $4.3 billion over three years in aware of it. programmes aimed at “saving lives on the road” VRR contribute to injury prevention Association) were its members. “As with many government or encourage the purchase of cars Their representatives met decision. Questions are being programmes, there was with higher ratings. with ACC on dozens of occasions. asked what will replace VRR or inadequate explanation and “It also loads burden onto low- Problems included cars being put what the government will now do education for the public about income people and families as they in the wrong risk-rating groups, so to promote safer vehicles. what the risk ratings were, how are generally less able to buy cars they worked with officials to get The MTA and AA have they were calculated and how to with the best safety ratings,” he says. them right. suggested action to promote use them to inform decisions.” “It hasn’t been fit for purpose. We The AA, MIA, MTA and VIA are purchasing decisions based on An Ignite Research survey can use it in a better way by giving all disappointed by Galloway’s safety at point of sale, while the conducted for the MTA shows 85 MIA favours tackling the difference per cent of people have no idea in import standards for new and what their car’s safety rating is and used vehicles. only 12 per cent are aware of VRR. Greig Epps, the MTA’s advocacy “The reality is occupants of and strategy manager, believes unsafe cars are more likely to be  education and awareness have been lacking in the government’s approach to car safety. Vehicles’ levy bands “Displaying the VRR or some ACC determines how safe each safety rating on consumer car in the fleet is for the vehicle A better deal for the information notices would be risk-ratings system. a good start,” he told Autofile. Firstly, it takes real-world crash “The decision to scrap VRR was data using the total secondary Motor Vehicle Trade made before policy conversations safety index. This scores each have even developed possible vehicle on how well it protects nFlexible credit facility available to fund replacement ideas. passengers and other people in a crash. It removes other factors vehicles in transit or on your yard “We’re disappointed as this decision has been made without such as alcohol, age and adverse nAccess to stock when you want to buy, any indication of what will replace weather for accurate results. not only when you have the available cash the VRR as a widely available If there’s insufficient data, indicator of safety. recent NCAP stars are used. A car nFree up your capital and grow “Our question is what purpose only gets an NCAP rating when your business it comes on the market and it’s did ACC want the VRR to serve? It not updated annually. This is why n has determined it wasn’t adequate Only available to registered ACC only looks at NCAP ratings if for calculating funding needs. motor vehicle traders they’re less than six years old. Then there’s the broader issue if If there’s still insufficient the VRR should have served to information, market groupings raise vehicle-safety awareness and are used based on similar vehicle if it was effective at that.” type, size and specifications. If Epps highlights the a car fits into none of these, the government using “equity” as a Ph: 09 320 5646 default rating is based on the reason for scrapping the system Contact us now to find out more www.autobridge.co.nz year of first registration. by claiming predominantly

6 www.autofile.co.nz news

t injured in accidents,” adds Epps. government has claimed ACC “The VRR attempted to impose an levies aren’t increasing for Kiwis, incentive for buyers to seek out this isn’t the case for car owners. the safest cars they could afford. “As a result of scrapping VRR, “The key question is whether the annual motor-vehicle levy replacement information and for 65 per cent of owners will education schemes will be more increase. Levies for 38 per cent of effective at informing people cars in the safest band will rise by about those risks. Hopefully, $28 – more than double the ACC consultation on the draft revision levy paid at the moment.” of Safer Journeys in April will raise David Vinsen, VIA’s chief awareness of vehicle safety.” executive, describes the industry The AA describes scrapping the group’s involvement in setting up VRR scheme as a backward step VRR as “quite a significant piece with the road toll rising – there of work”. 382 fatalities last year, the worst Developing VRR for new The Provident since 384 in 2009. vehicles was easier to achieve Mark Stockdale, because they were principal adviser – based on “NCAP regulations, says: “There was ratings systems – Promise “Improving the NCAP, JNCAP and fleet’s safety is key ANCAP”, but it was inadequate We don’t make promises we can’t keep. to improving road more complex for This is ours to you. To remain true to our values of safety. explanation used vehicles as passion, integrity, competence and commitment. “This is why for the they were based on For the hundreds of dealer businesses that we already the AA wants the Monash University work with, you’ll know that Provident accountability government to public about ratings, he says. goes beyond just doing what is acceptable. Things aren’t mandate the display what risk Although a lot of of safety ratings at time and money went always black and white but you can rely on us to do what’s the point of sale – ratings were” into working with right, for your customers and your business. – Greig Epps something VRR could ACC to develop the Our team listen, review, focus to make sure that have been used for. VRR system, when Provident products and services meet your business “While this system has only it was translated into variations needs now, and for the road ahead. Provident products  been in place for a few years, it on ACC’s premium component and services are constantly reviewed to ensure that was a way to incentivise New for relicensing fees the difference they are meeting the changing needs of the market. Zealanders to make safer choices between risk bands was “only And because we’re 100% NZ owned and driven, we can when purchasing cars. marginal”. Even though the idea adapt and adjust accordingly. “Vehicle risk-rating helps was a good one, “in practice educate motorists that not all the results weren’t necessarily You can be confident that we keep you at the centre of cars are equal in safety. Some old effective”. all that we do; through tailored support designed around vehicles worth just a few thousand Vinsen cites an example of your specific business needs, nimble thinking, and a dollars are rated band three or someone buying two cheap, commitment to our long term partnership with you. four – the safest – while some late- older cars of the same age and Being 100% NZ owned and NZ driven, I believe, gives model cars rate poorly.” size with similar safety features us the edge; we know NZ drivers and what they need Stockdale adds the annual only for them to put into differing to protect their investment on the road. We also licence renewal serves as a fee bands. understand this market and we listen to your feedback reminder and may promote “The intention of this system and work hard to deliver what you tell us is important thinking about relative ratings. was to provide pricing signals to you and your customers. It’s what we promise to “In the long run, the AA believes for people to buy safer vehicles, help keep driving your business forward. vehicle risk-rating will help change but differences between bands purchase behaviour, and influence were so small they were almost You have my word on it. the safety standard of vehicles irrelevant. “It’s disappointing risk imported and sold by dealers.” ratings aren’t going to become a Steve Owens, With the VRR’s imminent standard safety system for used CEO Provident Insurance, NEW ZEALAND. demise, average motor-vehicle vehicles, but the results have levies, which include the annual almost been immaterial.” licence and petrol levies, are set to When the government remain at $113.94 for the next two suggested getting rid of VRR, years, and average work levies will there were mixed views from MIA drop from 72c to 67c per $100 of members on the benefits versus liable earnings. the cost of maintaining the system. The AA says while the “Some members wanted it

[continued on page 8] www.autofile.co.nz 7 news

[continued from page 7] kept, others didn’t believe the cost warranted retaining it,” David Crawford, chief executive officer, told Autofile. “Overall, we think it should continue with work needed to get it right because it’s causing more problems with new cars than used imports. There are some fish hooks that don’t work and are sending out the wrong signals.” This is particularly the case when a total secondary safety index (TSSI) rating has been vastly different to ANCAP’s. The TSSI has been designed by NCAP stars are used in vehicle risk-ratings Monash University, Melbourne. It uses information on how well As for the bigger picture with Passenger vehicle risk-rating – current ACC levies a vehicle protects occupants in safety, the MIA is interested in Band Number of cars Petrol levy Non-petrol levy an accident with data reverse- policies to reduce the road toll 1 610,000 $80.64 $149.14 engineered from actual crashes with vehicle standards at import. 2 610,000 $53.53 $122.03 based on Australian data. “We prefer to advocate what 3 930,000 $37.22 $105.72 “In principle, we see the VRR we believe are sensible policies 4 1,860,000 $18.00 $86.50 Source: ACC. Hybrids, electric cars and plug-in hybrids come under petrol. as a good idea and – with some applying as they come into the refinement – the system can be fleet, and what the government made better,” says Crawford. can do to ensure new entrants used vehicles currently imported The MIA believes there’s He points out the new ACC to it are better when it comes and means 14 to 16-year-old cars already a huge gulf in the fixed fee will be equivalent to the to in-vehicle safety and the are still entering our fleet. difference between entry current fee for VRR band three. environment. “It doesn’t make any sense standards for new and used. Presently, 46 per cent of cars are “For example, the MIA views allowing vehicles from the May “Rules for used imports are band four, the highest safety the electronic stability control 2004-06 model years to come soft and need updating in the rating, and 23 per cent are in [ESC] rule for used imports as an in and begs the question why interests of the public,” says band three. Only 16 per cent are abomination. three-generation-old technology Crawford. “New Zealand needs to rated band two and 15 per cent “It results in February 2020 continues to be allowed in. manage its fleet to ensure what are in the lowest band one. as the last month for MA-class “By doing so, there’s no way enters it isn’t sub-standard. “If VRR is scrapped, nearly half vehicles – those with engines the government can control “If the new-vehicle industry of motorists will end up paying of less than two litres – being or improve the fleet and that started bringing in cars that were higher ACC licence levies than allowed into New Zealand with includes its safety. The ESC rule Euro 4 emissions or ANCAP two they currently do, which will be ESC fitted and working. This simply allows really old junk in and three-star rated, it would be unpopular.” amounts to about 70 per cent of through the back door.” crucified.”

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www.autofile.co.nz 9 news Market drop-off flagged up t warning has been “We saw improvement in at – or close to – scrapping age, so sounded that the conditions in quarter two after a hundreds of thousands will need slowdown in the challenging first quarter. Diversified replacing over the next decade. Aautomotive market may lead to revenue streams are demonstrating Compared to the new-vehicle industry consolidation. value with a strong performance sector, used cars tend to be less Turners Automotive Group from the insurance business discretionary with a fragmented reports it’s seeing the demand offsetting headwinds in retail.” market meaning no one dealer has and supply sides of vehicle retail The Turners Group delivered more than a 10 per cent share. cooling off. an improved year-on-year result in “Most Kiwis are in the market for It says the number of used the first half of 2018/19. Damaged- a vehicle under $10,000 and more imports coming in is down and vehicle revenue rose by nine per than 80 per cent of buyers will landing costs have increased due cent off the back of deals to sell purchase a vehicle under $20,000. to stricter stink-bug controls, write-offs while fixed-price sales This is the range we mostly play in,” which are impacting margins, increased. says Baker. while demand in the competitive Buy Right Cars had lower- “More than 80 per “While most customers still prefer Auckland market has weakened than-expected results due to to come in store to buy, pre-purchase with pressures from higher living gross margins dropping by 20 per cent of buyers will investigation is done online. How and fuel costs. cent per unit, clearing old stock purchase a vehicle we engage with them is becoming “Challenging conditions will and volumes. Its focus is now on under $20,000. more important. Our retail network is inevitably lead to consolidation “increasing the proportion of NZ- expanding and we’re gaining market in the dealer market, which will new cars sold versus imports for This is the value share, and our loan portfolio is provide Turners with opportunity higher margins and quicker turn”. range we mostly transitioning towards better quality as we focus on building market “Most of the headwinds have play in” – Grant Baker and lower risk lending.” share,” the company’s interim been felt by Buy Right Cars due to Oxford Finance’s network of report of January 9 states. the high proportion of used imports dealers grew with 120 dealers it sells and its presence in Auckland, coming on-board in the first half which has been particularly while Autosure improved its loss impacted by market conditions,” ratios on all products. says chairman Grant Baker. The group’s net profit before The company says the used- tax (NPBT) rose by 18 per cent to car market offers “significant $16.8m during the half-year. It opportunities” with last year warns if challenges in automotive delivering record transactions. retail continue, they could impact “While the first half of this year isn’t NPBT guidance of $34-$36m by up Specialists in as high, it’s in line with the first half to 10 per cent. pre‑shipment inspections of 2017, which was a record year.” It adds New Zealand’s fleet of DEALER FINANCE DOWN in Japan & UK about four million light vehicles is MTF Finance’s franchise network ageing. More than 20 per cent are was its strongest performer last   Full border inspections

 Authorised MPI inspections  Authorised NZTA inspections Vehicle lending boost  Odometer verification Car loans played a big part in UDC executive Wayne Percival. “The Finance’s record net profit of $65.3 economy has continued to be  Pre-export appraisal million for the past financial year strong. Despite slowing growth in – up six per cent on the previous automotive and reported lower  Vehicle history reports period. business confidence, UDC has had A key contributor was strong a positive result.” lending growth, which rose by This financial year, the company 11 per cent to $3.22 billion, while will focus on the high-demand vehicle loans jumped by $217m or road transport and construction 18 per cent. Revenue was up by 10 sectors, particularly in Auckland. per cent to $136.5 million. The results follow owner ANZ JEVIC NZ “This strong result reflects loan calling off UDC’s sharemarket float growth, attention to credit quality or sale, which had been proposed 09 966 1779 www.jevic.co.nz and cost management,” says chief in 2018.

10 www.autofile.co.nz news

t year with sales up by 10 per cent franchisees”, with the company with initiatives to widen the scope noting, in recent years, it had given of growth about to start. up ground in the dealer market An arrangement with Trade Me “due to competitors rushing to the Motors to promote MTF through lowest rate”. private-vehicle listings has been “Our offering to dealers of a piloted in Canterbury, for example. recourse-based lending facility However, late last year Turners – where they get to make the Finance began migrating away lending decision and keep the from the company as it continued customer while earning superior integrating the business into its risk-based returns – is still relevant. automotive group. We will retarget dealers who This, along with a drop in understand the opportunity and non-recourse volumes, means Stephen Higgs, chairman of MTF Glen Todd, chief executive officer show a willingness to work with us.” MTF is forecasting no further asset One issue highlighted as growth for the current period, cent to $8.3m. Sales rose by 5.5 per Stephen Higgs and chief executive affecting the market is the although a customer-focused cent. After a record 2017, last year’s officer Glen Todd. government intending to approach – coupled with a model first half continued strongly. But “In addition, we have begun a significantly change the Credit targeting growth opportunities – demand for non-recourse product digital-media campaign aimed at Contracts and Consumer Finance will service demand. dropped after tighter underwriting attracting customers in the buying Act. While primarily aimed at MTF reported profit before criteria was introduced to improve cycle to our franchisees. pay-day lenders and truck shops, commission and fair-value credit quality. “In our traditional dealer this will impact the way finance movement of $52.4m, up by 7.4 per “Future success depends market, finance for new and used providers work and likely require cent on 2017/18 with asset growth on doing things smarter than vehicles has declined slightly. costly implementation. flowing into net interest margin. competitors to deliver originators a Research carried out mid-year has “We’re optimistic the changes Commission to shareholder superior service, develop products provided insights into where we will give the industry much- originators increased by six per that satisfy their customers’ needs need to focus efforts.” needed clarity and provide an cent to $39.9m, while underlying and generate a competitive return MTF’s system continues to even playing field for compliance profit after tax rose by 14.2 per to shareholders,” say chairman deliver “outstanding results to requirements.”

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www.autofile.co.nz 11 news

In brief Legal action over Industry says bid to reduce emissions ‘unrealistic’ An EU agreement to cut emissions by more than one-third by 2030 has waivers and ads been opposed by the automotive industry as “unrealistic”. Member states will aim to reduce carbon-dioxide emissions from new he Commerce Commission other warranty, and they don’t lose cars by 37.5 per cent and vans by 31 per cent by 2030 compared with 2021. has brought 10 charges CGA protections by declining to There’s also an interim target of a 15 per cent for cars and vans by 2025. against a motor-vehicle buy an extended warranty. But the European Automobile Manufacturers’ Association says the dealerT for alleged breaches of the Remedies must be done targets have a “seismic impact” on industry jobs. Fair Trading Act (FTA). within a “reasonable time”, not The agreement, which aims to spur the move towards electric vehicles 2 Cheap Cars is facing the legal at the supplier’s convenience, (EVs) and other alternatives to diesel and petrol, has been described by action over its use of “warranty and consumers can recover costs EU policymakers as a compromise between green concerns and countries waiver” documents, as well “must reasonably foreseeable as a result with big car industries. liquidate” and “84 per cent off” of the failure. These may include car Europe is aiming for the transport industry to be climate neutral in the advertising claims. rental while repairs are completed. second half of the century, but EV take-up in many parts of the continent The commission’s action follows The CGA applies to all goods has been slow with political pressure to keep the cost of motoring low an investigation it launched in purchased, which in this case spilling into protests across France. November 2017 after receiving includes tyres and batteries. complaints from consumers. 2 Cheap Cars stopped using ‘Game-changer’ in market scoops prestigious title And the maximum fine for each the warranty waivers in December The Genesis G70 is the FTA charge is $600,000 after it 2017 after being told about the 2019 North American Car increased from $200,000 in 2014. commission’s investigation. of the Year. In receiving One charge comes under the lower While CGA breaches are enforced the award, it’s the amount, Autofile by consumers going youngest brand to have has established. to the Motor Vehicle done so after being spun 2 Cheap Cars Disputes Tribunal, off by Hyundai about three years ago. will now be quizzed it’s a breach of the The judges describe the G70, pictured, as a game-changer for the about its conduct FTA to mislead sedan market. The award is bestowed annually on the car that hits in regards to more buyers about benchmarks based on innovation, design, safety, handling, driver than 20,000 warrant their CGA rights. satisfaction and value for money. waivers between That’s when the This year’s other finalists were the all-electric Jaguar I-Pace, Acura RDX January 1, 2014, and December 31, commission gets involved. and Hyundai’s Kona. 2017. Over that period, it is alleged The company has also been the company asked buyers to sign charged for its advertising of sales Testing company gets funding for battery test one if they chose not to purchase on September 30 and October VTNZ has obtained a $26,000 grant from the low-emission vehicles an extended warranty. 1, 2017. Its statements included contestable fund to develop a reliable and affordable method of The “waiver” included terms “2 Cheap Cars is in hot water, it testing EV batteries. such as, “the vehicle doesn’t must liquidate immediately” and It will use the money to develop a battery condition, and charging include a warranty of any kind”, “massive price drop this weekend”. infrastructure performance and safety, test. “[if] you choose not to purchase The commission claims this was Country manager Greg O’Connor says: “A reliable assessment service the indicated warranty, you must misleading for suggesting many will accelerate uptake, and give buyers of second-hand EVs confidence in sign this waiver” and “I understand vehicles would be significantly battery condition, life expectancy, charging ability and safety.” 2 Cheap Cars will comply with the discounted and there would be Consumer Guarantees Act [CGA]”. no more chances to buy from Association member rewarded for his service Others were, “I also understand the company as it was going into Dick Mitchell, a long-time member of the Whanganui branch of the I am, and would prefer to be, solely liquidation. Motor Trade Association (MTA), was awarded the Queen’s Service Medal responsible for any repair bills”, Most of the 710 vehicles for sale in the new year honours list. “if repairs are carried out they will nationwide weren’t discounted or A member since 1972, he was president from 1991-97 and an be done by 2 Cheap Cars at their had discounts of as little as $5. executive committee member from 1997 to 2003. Mitchell, who was convenience and no courtesy cars In January 2017, 2 Cheap Cars’ honoured for services to the community and music, helped organise the provided”, and “consumable items, newspaper adverts included the annual MTA Whanganui golf tournament. He also maintains and replaces such as but not limited to tyres phrase “84 per cent off”. It’s alleged Whanganui Tramping Club’s vehicles. and batteries, are not covered by this was misleading because – the CGA”. together with “massive stock Input sought into new applications for mergers The commission alleges the liquidation: this weekend only” – it The Commerce Commission has released updated draft guidance for waiver documents misrepresented gave the impression the discount investigating merger clearance applications and non-notified mergers people’s rights under the CGA was on vehicle prices. In fact, the under the Commerce Act. because buyers have rights of discount was off the cost of a $300 It has also released an updated clearance application form. Copies can be remedy against suppliers whether GrabOne voucher to use towards found online at www.comcom.govt.nz. Submissions close on February 28. or not goods are covered by any buying a vehicle.

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EDGE www.autofile.co.nz 13 newslooking back The month that was... February

February 8, 1999 February 29, 2008 UK used import market collapses Fuel-economy generator live The bubble appeared to have burst for dealers An internet-based label generator went live on the tackling the tricky UK and Irish markets for used government’s Fuelsaver website in advance of the imports. requirement for all motor-vehicle traders to display Kiwi dealers said the markets there had fuel-economy labels on cars for sale from April 2008. virtually collapsed, which would have positive Dealers were required to display labels clearly benefits on local sales. and prominently so they could be read from a Steve Ward, of Auckland’s Frontier Motors, who reasonable distance, stated the Energy Efficiency had been involved from the outset and was one Regulations 2007. of the best-positioned to take advantage of the opportunities there, Traders also had to ensure fuel-economy information was displayed on said the Irish market was oversupplied with stock and there were too many light vehicles of less than 3.5 tonnes offered for sale online. dealers chasing too few deals. The Energy and Efficiency Conservation Authority already had an He added local new-vehicle distributors had woken up to the threat of online service that allowed website owners to automatically obtain cheap imports and had started to reduce prices. necessary data from Fuelsaver. Many website owners were already using There were as many new cars sold in the UK as in Japan, but with half this service to update their sites. the population, Ward claimed. This meant there was no shortage of used If the label was missing, or fuel-economy information wasn’t on a vehicles in the UK, but they were overpriced. This had, until now, given website listing, dealers could be fined up to $5,000. imports the edge. But with new prices reducing, trade-in values were coming down too, February 9, 1998 narrowing the margin between UK-new and used imports. In addition, some finance companies were refusing to finance imports Industry heavyweights consider plan making it more difficult for buyers wanting to cash in on the cheaper Members of the national executive of the Motor import deals. Vehicle Dealers’ Institute (MVDI) were considering a plan being proposed by MP Harry Duynhoven, February 3, 1997 which was aimed at putting an end to the long- running controversy of odometer clocking. New car prices continue to tumble The plan – the Vehicle Authentication Service Mitsubishi’s January move to cut new-vehicle (VAS) – called for three offices to be set up in Japan prices was the latest salvo in ongoing price wars. It to check odometers before cars were exported to New Zealand. had joined Toyota and Honda, which had recently As Autofile went to press, Duynhoven was meeting with the chief dropped their prices. executive of the Imported Motor Vehicle Dealers’ Association to suggest However, Autofile research showed each of the that it should help fund the scheme. The same request would be made of marques, which made up 79 per cent of the new- the Motor Industry Association. vehicle market, had dropped the cost of at least one The MVDI’s legal adviser, Michael Reed QC, had previously told model in the past year. Duynhoven the idea of such an agency as the VAS was not new and Mitsubishi said it had adjusted pricing to pass on to consumers the similar proposals had been around for more than three years. effects of the high level of the kiwi to the yen. Prices were up to $5,000 The MVDI and Duynhoven had agreed to issue a joint statement on the lower, but $11,000 had been stripped from the Lancer GTi sedan. matter, but the next day the institute changed its mind. The marque said the new pricing put cars at their lowest level for two About 50 car dealers had already given the MP a mandate to take decades, compared to the average income. There were 36 franchises the VAS proposal to their national executive and many had expressed chasing static sales, with more than 530 models available in one of the dissatisfaction with the way the MVDI had handled the clocking issue. smallest OECD markets. Despite all of the jostling for position, Duynhoven remained positive: Grant Simpson, at Newmarket’s Kirk Motors, reported increased enquiry “I’m confident the MVDI will see the sense in the plan being proposed and from people at the dealership to phone calls about the product. will flesh out the details in order to bring this to reality.”

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14 www.autofile.co.nz new cars

t Shape of vehicles to come

ut of the Japanese comprising of Skyactiv-X, G and D hatchback customer is non-suit.” Toyota, we have two concepts of marques exhibiting at the engines. However, this design philosophy. We should maintain Los Angeles Motor Show, Mazda has pursued different philosophy will not be rolled out independence of brand and MazdaO made one of the biggest designs for the hatchback and across other models with two body management. When we can impressions for what it plans to do sedan to appeal to a broader buyer styles, such as the next-generation collaborate, we should do so and – and not. base than the outgoing model. Mazda2 and Mazda6. have a win-win relationship.” It chose the event for the The fourth-generation sedan The Mazda3 hatch boasts a bold He added he wouldn’t consider premiere of its all-new Mazda3 and is pitched at more conservative rear design with a large C-pillar, a partnership to fully co-develop to announce that it will use rotary- buyers who prefer a traditional sloping roofline, rounded tail and an iconic model, such as the MX-5. engine technology for a range- shape, while the hatchback heads circular tail-lights that will become “However, we are progressing extender powertrain. down a sportier track. a brand signature. The sedan’s co-operation with companies However, the manufacturer has Yasutake Tsuchida, chief boot is more prominent than the other than Toyota for some regions no intention of following some of designer of the Mazda3, said the previous model and has a more or projects,” said Marumoto. “In its rivals by forming permanent company adopted the strategy traditional C-pillar. Japan’s micro-car business, we alliances with other brands. despite receiving no customer Tsuchida said Mazda went for a have a partnership with Suzuki. For The redesigned Mazda3, feedback on the issue. sporty look for the hatch to try to the next-generation pick-up truck, pictured above, will be rolled out “When we talk about clothes, stand apart from the influx of small we will tie up with Isuzu.” globally starting in North America the sedan customer would SUVs impacting on small hatchback early next year with its line-up prefer the business suit and the sales globally. INTEGRATING FUTURE The marque is yet to start work BMW staged world premieres in on a production rotary sports car the city of angels for three models to continue the legacy of its RX-7 and provided a vision of the future. and RX-8 despite developing such The marque says the X7 and 8 technology. Series convertible represent the Vehicles wanted It will use rotary engines with a next steps in its luxury-segment future range-extender powertrain, offensive, while the wraps come dealers Buying now but that’s slated for an electric car off the M340i xDrive sedan, or SUV. which boasts combined fuel Mazda is synonymous with consumption of 7.5l/100km and rotary power, and rumours have CO2 emissions of 172g/km. VEHICLES WANTED circulated for years it’s planning a But it was the Vision iNext that All Audi, Porsche, Jaguar, Land Rover and Volvo Models return to the mid-size rear-drive stole the spotlight. It’s the first time sports car segment. automated driving, connectivity, This reached fever pitch in 2015 electrification and services have with the RX-Vision concept being been integrated in a single vehicle.

Jeff Dacombe . 021 532 355 . jeff[email protected] shown in Tokyo, but the marque A production model based has played down an RX return on it will serve as a technological due to development costs and flagship with first examples rolling low volumes. The biggest issue is off the assembly line in 2021. LATE MODEL FORDS & MAZDAS WANTED making a business case that works. Adopting the proportions of When asked if Mazda would a BMW SUV, its grille is blanked consider partnering with other off and serves as an “intelligence companies to reduce costs – as panel” housing sensors. with the MX-5 and Fiat’s 124 Spider The iNEXT’s functional two-box – president Akira Marumoto was proportions and long roofline hint Call Jason Robb unconvinced, stressing the marque at ample space inside. Its short Ph 0274 133 222 would remain independent and overhangs and long wheelbase not forge permanent alliances. give it a dynamic edge. To advertise here, contact: While Mazda had strategic Two large opposing doors and partnerships with others, Marumoto no B-pillars ensure ease of access to [email protected] said it could survive on its own. the interior, which is a “fashionably or ph 021 455 775 “In terms of our alliance with furnished living space on wheels”. 

16 www.autofile.co.nz new cars

t The inside has separation acquire capabilities continually between the driver’s area and rear thanks to updates from remote compartment with continuous software upgrades. seating giving the rear a lounge character. ‘CONCEPT’ OF car The cockpit has digital display Volvo devoted its stand in Los The all-electric Rivian R1T pick-up panels, a flat instrument panel and Angeles to its role in future mobility steering wheel. Elements assume rather than showing off new models. world’s biggest right-hand-drive torque vectoring so both models different states depending on the There were interactive displays market – so it may head down under can reach a top speed of 201kph. driving mode. illustrating its vision for vehicle if a business case can be made. The 135kWh version is the In boost mode, the steering connectivity, car sharing, in-vehicle While Tesla is developing a quickest by getting to 97kph in wheel and displays are positioned delivery, autonomous driving and pick-up based on its Semi, it could three seconds and onto 161kph in towards the driver. When ease subscription services. be years away from being realised less than seven. mode is on, the wheel retracts “Instead of taking a concept car, placing Rivian in pole position to The five-seat R1T and seven- slightly and the accelerator pulls we talk about the concept of a car,” be the first to deliver a battery- seat R1S ride on skateboard away to create more space. said Marten Levenstam, Volvo Cars’ electric ute globally. platforms, which package the The marque claims the iNext head of product strategy. The R1T and R1S start from about battery pack, electric motors, answers the question, “what does By the middle of the next NZ$102,500 and $108,000 before the thermal system, underbody a vehicle look like that no longer decade, Volvo predicts half of its US federal tax credit of $11,160. protection and suspension below needs to be driven by a person, but production volume will be electric The former comes with three its wheels. can be if desired”. vehicles and one-third autonomous. battery packs – 105kWh, 135kWh With hardware including Meanwhile, the X7’s engines “Our industry is changing,” and 180kWh – with ranges of cameras, lidar, radars, ultrasonic comprise of a petrol V8, six-cylinder added chief executive Håkan more than 370km, 483km and sensors and GPS with high-definition in-line petrol and two six-cylinder Samuelsson. “Rather than just 644km respectively. The R1S has maps, both models support level- in-line diesels. They are mated building and selling cars, we the same configurations, but adds three autonomy on roads. with an eight-speed steptronic will provide customers with the 16km of range. The R1T competes in the full- transmission and BMW’s xDrive freedom to move in a personal, Each version has four 147kW size segment dominated in the intelligent all-wheel-drive system. sustainable and safe way. We will electric motors to create an all- US by the Ford F-150, Chevrolet The SUV boasts two-axle offer them access to a vehicle, wheel-drive system with active Silverado and Ram 1500. air suspension and adaptive including services when and suspension with electronically wherever they want it.” controlled dampers. Volvo has already revealed an The 8 Series convertible has a all-electric driverless concept, the soft-top roof, which can be opened 360c, to showcase its ideas for an Vehicles wanted or closed automatically in 15 autonomous car suitable for inter- seconds at speeds of up to 50kph. city travel. The pod-like vehicle has Standard features include roll-over four seats for normal commuting, Volkswagen protection, wind deflector and but they can be converted into a neck warmers in the front head bed for overnight trips. restraints. Toyota The M340i xDrive sedan is ELECTRIC EXPANSION powered by a new six-cylinder Michigan-based electric-vehicle Mercedes Benz in-line engine with maximum start-up Rivian has revealed its output of 275kW and peak torque first model, the R1T pick-up, with of 500Nm. It makes the 0-100kph deliveries starting late next year. Its Nissan dash in 4.4 seconds. mechanically related SUV, the R1S, Its digital companion – due to will follow in early 2021. be rolled out across the marque’s The company plans to expand Skoda range – can be activated with the sales outside of North America, voice prompt “hey BMW” and helps setting a European launch for 2021. the driver to use functions. It will This roll-out will include the UK – the Lexus Kia We are always looking to purchase late model NZ New cars aNd commercials miles motor group Paul Curin 0274 333 303 [email protected]  The BMW Vision iNext www.autofile.co.nz 17 EV focus Rebooting electric car batteries

he traction battery is the Leafs are among few EVs range when new. That’s repair and maintenance, so their heart of an electric vehicle that don’t have active still adequate for most bodies and other parts will far outlive (EV). The amount of energy “thermal management” regular trips around original batteries, if not several. It itT can store and then deliver to the of batteries. As they are town, but the key to would be a waste if we aren’t able to powertrain determines its range charged, they get hot. long-term cost savings is replace them when needed. and practicality, and greatly affects A combination of hot to run hybrids as much Mechanics will occasionally its resale value. temperatures and high as possible on their swap batteries rather like replacing Just as you have to charge your “state of charge” hastens traction batteries. the transmission on an ageing cellphone more as it gets older, so degradation. Henrik Moller, co-founder, The best system is combustion vehicle – one of the Flip The Fleet too the EV battery’s energy-holding The newer EV models Tesla’s, which has a liquid- big jobs to keep a car rolling. But capacity gradually fades. nearly all have a system of blowing cooling system to cool the battery first we need a guaranteed supply It’s no wonder the second most- air over the battery pack or passing when needed and warm it up in of replacement batteries. common reason why some people a cooling liquid past them. winter. The battery is maintained It’s fair to consider the Leaf’s still won’t consider buying an EV is The oldest of generation 1.1 at the optimum temperature for battery fade rate as a worst-case uncertainty about battery life – it’s 24kWh Leafs – built between energy efficiency and life. So far, Tesla scenario for our EVs because the only marginally less a deterrent late 2010 and late 2012 – are batteries have only dropped about model is an early example of than the higher purchase cost of now down to around 70 per cent one per cent capacity each year. rapidly improving chemistry and the car itself. battery capacity. They’re also In the longer run, the key to technology. Also, Nissan has yet to Provided New Zealand can get less efficient than later models, locking in green and financial make replacements available for a good battery service industry so they’re likely to be achieving benefits of EVs in New Zealand used imports. going, people need not be too 90km on a full charge in typical is to develop our own battery Rescue might come from concerned. Nissan Leaf batteries conditions. refurbishment, replacement and substituting non-Nissan batteries are most at risk, but even these Plug-in hybrid batteries disposal service industry. in their place, but this would are losing only about three per typically deliver a 45-50km We expect EVs to require little need careful management to cent capacity on average every meet quality and homologation year. That means they are lasting ENERGY-HOLDING CAPACITY challenges. Some relief may come better on average than Nissan’s 100 from transferring second-hand expectation of 20 per cent loss 40kWh battery packs into 30kWh

90 24kWh after five years. and 24kWh cars, especially if Last October, Flip The Fleet 80 G Nissan were to make the 40kWh asked EV owners whether and 60kWh packs available when 70 “securing an affordable supply of it starts selling new second- replacement batteries is the most 60 generation models here. serious need for sustaining EV 100 Flip The Fleet has been lobbying uptake in New Zealand”. our government to invest in the

90 30kWh Answers from 551 people battery service industry and extend cleaved into two main groups 80 G any feebates or similar EV subsidies – those driving Leafs or eNV200 to help cover the cost of replacing 70 vans agreed strongly, while those Reported state of health (per unit) or refurbishing them. It’s doubly driving other types of battery 60 important we gear up quickly to EVs were hardly worried about 0 2 4 6 8 reboot EVs with spent batteries, replacement or refurbishment. Age in years especially if we’re to rely on used Owners of plug-in hybrids were EV owners have formed Flip The Fleet to, among other issues, measure the rate of capacity fade imports to drive the EVolution. in batteries. Each month, they report on their state of health (SoH) – the percentage of original split – some were quite concerned, energy-holding capacity they can still hold. The graph includes all 4,715 SoH measurements up others not bothered. to January 2019 from 408 24kWh (upper) and 192 30kWh (lower) Leafs. Nissan’s estimate for Henrik Moller is a retired sustainability decline is 80 per cent SoH after five years and is shown by a red dot. The data for 30kWh models scientist. Additional research by Daniel Myall These results make good sense. accounts for the battery firmware upgrade released by Nissan NZ in August 2018. 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 +1.9% 89.4% -6.7% +63.1% +6.8% +29.1% • Nissan Leaf • BMW i3 $24.7k • Renault Zoe • Mitsubishi Compared to Compared to Compared to Compared to Compared to Compared to Outlander • Renault Kangoo last month prior year last month prior year last month prior year * Figures as per the end of January 2019

18 www.autofile.co.nz EV focus Beehive investigates zero emissions

he government wants to (DIA), 52 per cent are electric. plug-in to replace diesel-powered Shaw says: “Part of the problem change more of its fleet to Across the entire fleet – owned BMWs shuttling ministers around is New Zealand lacks strong greener vehicles over the and leased – 29 per cent are EVs. has found that while the vehicle incentives most other developed Tnext seven years. The DIA’s contract with BMW is a viable option to integrate into countries have to sell more fuel- It intends to transition its expires in October 2019, so later the crown fleet, it may not work as efficient and climate-friendly cars.” vehicles, including 32 in the BMW this year it and the Ministry a complete replacement. As for the bigger picture, there 7 Series, to emissions-free models of Business, Innovation and Alongside these limousines, were 11,748 EVs on Kiwi roads by by 2026. Employment “will return to the the VIP fleet includes 77 vehicles the end of last year – up by 89 per At the moment, 29 per cent market to replace the crown with almost one-third being fully cent compared to December 2017. of ministerial vehicles, including limousine fleet”, says a spokesman. electric or hybrids. They included 6,782 used crown and self-drive cars, are Chris Hipkins, the Minister James Shaw, Minister for imported and 2,005 new fully electric, up from two per cent by Responsible for Ministerial Climate Change, has already electric vehicles. There were this time in 2018. Services, believes EVs offer been looking into increasing the also 1,938 new and 896 used- The complete crown fleet environmental and financial number of EVs used by ministers imported plug-in hybrids, and is made up of owned and benefits. as part of a wider policy push 198 heavy EVs. leased 72 vehicles. There are 34 “The government is playing a to get more people to make the The previous National chauffeur-driven BMWs, seven leadership role,” he says. “It intends switch. government announced a target other chauffeur-driven cars, five to transition its full fleet, including Late last year, he indicated new of electrifying its fleet by 2021. vans and 26 ministerial self-drive the 32 BMW 7 Series vehicles, to initiatives to help speed up the But after the general election, the vehicles. They include 47 diesels, emissions-free vehicles by 2026.” uptake of EVs, but has yet to make coalition opted for emissions-free 16 plug-in hybrids, four battery However, not all individual any announcements. by 2025/26 “where practicable”. electric, four petrol and one full vehicles in the next few years will hybrid. be emissions-free. Hipkins adds: Light EV ownership All cabinet ministers and four “For example, if long-distance Pure electric Plug-in hybrid ministers outside of cabinet have travel is needed, it’s currently not Individual 6,501 74.0% 1,713 60.4% self-drive vehicles, of which 53 per practical to use an emissions-free Company 1,712 19.5% 1,072 37.8% cent are EVs. vehicle due to the lack of charging Of vehicles owned by the stations in remote areas.” Other 574 6.5% 49 1.7% Department of InternalTable Affairs 1 A six-month trial of a BMW “Other” owners are typically central, regional or local government

Table 1 Monthly light EVEV registrations share of - new and used import EV percentage share of registrations 700 registrations 2.25% New light Used light 650 New light Used light 2% Jan600 2014 0.025% Jan 2015 30 11 550 1.75% Feb 0.065% 500 Feb 19 11 1.5% Mar450 0.186% Mar 46 12 400 1.25% Apr350 0.234% Apr 24 9 300 1% May250 0.177% 0.75% Mar 16 13 200 Jun150 0.103% 0.5% Jun 36 15 100 Jul 0.25% 50 0.120% Jul 20 28 Aug0 0%

Jul 0.112% Jul Oct Oct Apr Apr Jul Jul Jul Feb Feb Jun Jun Nov Nov Sep Sep Aug Dec Dec Aug Oct Oct Oct Mar Mar Mar Mar Apr Apr Apr Feb Feb Feb Jun Jun Jun Nov Nov Nov Sep Sep Sep Aug Dec Aug Dec Dec Aug Mar Mar Mar Aug 21 9 May May May Source: MoT, 7 Jan 2019 Jan 2017 Jan 2018 Sep 0.113% Jan 2016 Jan 2017 Jan 2018 Sep 28 17 Oct 0.116% Live EV listings on Trade Me: New EVOct listings on Trade Me: EV 16watchlists on Trade Me:24 NovTop 5 EV models 0.144%Average listing price Nov 22 24 listed on Trade Me last month: for the month: Eye on EVs Dec 0.121% +1.9% 89.4% -6.7%Dec +63.1% +6.8%17 +29.1%37 • Nissan Leaf • BMW i3 $24.7k Jan• Renault 2015 Zoe • Mitsubishi 0.173% Compared to Compared to Compared to Compared to Compared to Compared to Outlander Jan 2016 19 43 • Renault Kangoo last month prior year last month prior year last month prior year Feb 0.145% Feb 14 22 * FiguresMar as per the end of January 2019 0.239% Mar 31 43 Apr 0.160% Apr 46 48 www.autofile.co.nz 19 May 0.128% Mar 29 58 Jun 0.199% Jun 135 60 Jul 0.196% Jul 68 85 Aug 0.128% Aug 47 78 Sep 0.185% Sep 39 78 Oct 0.166% Oct 57 108 Nov 0.195% Nov 131 91 Dec 0.236% Dec 98 86 Jan 2016 0.260% Jan 2017 83 124 Feb 0.161% Feb 103 126 Mar 0.301% Mar 67 142 Apr 0.418% Apr 41 144 May 0.361% Mar 105 180 Jun 0.745% Jun 109 200 Jul 0.610% Jul 67 224 Aug 0.479% Aug 90 252 Sep 0.437% Sep 89 247 Oct 0.590% Oct 136 300 Nov 0.820% Nov 132 346

Dec 88 290 1 Jan 2018 99 317

Feb 94 193

Mar 125 214

Apr 109 270

1 industry profile Gap in market reaps rewards

ome 38 years ago, Stephen Glading noticed a significant insurance need in the motor- vehicleS industry and ventured out on his own to provide that. Now the owner and former chief executive officer of Protecta Insurance has decided to take up a non-executive position with the company. Reflecting on the past three decades, Glading says they have been an incredible journey for someone who left school with “no idea” about what to do career-wise. He started off working part- time at a Hugh Wright’s menswear t store in Panmure, Auckland, while he was at school to save for a car. “Many stores needed Friday night staff and I’ve always had a passion for men’s fashion clothes.” After leaving St Kentigern College, Glading went full-time with the company and stayed there for some years before his OE to Australia during the late-1970s. He lived in Sydney and worked in an Stephen Glading, managing exclusive Kiwi-owned menswear director of Protecta Insurance store in Chatswood. On his return to New Zealand, finance was done on recourse They put their money and trust on He’s also proud of expanding he moved into management and recourse dealers needed what they buy. I love the industry.” into insuring classic vehicles. “I with Hugh Wright’s, but became contingent debt insurance, so I Over the years, personal love the enthusiasm and support disillusioned with his treatment. thought we’d give it a go.” highlights have included from staff. “I was young and the older peers He started working from a watching his company grow, “For example, Colin Marshall, didn’t like the progress I made in serviced office on Khyber Pass being surrounded by great our sales and marketing manager, the company.” Road with two staff. “Back then, staff and having “a number of has developed our own event As fate would have it, Glading nothing was online. My father committed people with us for called Caffeine and Classics at was “tapped on the shoulder by would go out to collect insurance more than 10 years”. Smales Farm on the North Shore. a friend of a friend” to sell life certificates and cheques from “I have always set targets, and The event is the largest in New insurance, so he went to work dealers. Then I came across the remember in the early days when Zealand. We have run out of space, for MLC Insurance in Auckland’s need for extended warranty. we hit $1m revenue for the year which required us to expand and Queen Street for four years until “We had part of the package, and got the champagne out. Then do a deal with Hampton Downs.” his wife became pregnant and but not all of it. I met someone we averaged $1m each month. We And giving back is never far remarked, “this commission job selling warranty on the market and were high-fiving each other.” from Glading’s thoughts. “I’ve been isn’t good, it’s up and down, you suggested we get together, which Moving into the motorbike involved in Rotary over the years need to get a real job”. led to Protecta Insurance being insurance market in the 1990s and have been president of my “Soon after, I saw a position formed in 1986.” was a highlight “because of local club, Half Moon Bay. in a newspaper with Motorcorp It wasn’t long before Glading the way the business grew – “Protecta supports two of Honda on Broadway, Newmarket. I got the backing of an appropriate we’re now one of the leading the club’s fundraisers – a charity became one of the first managers insurance provider and “that’s motorcycle insurance providers in golf event for customers and in New Zealand selling finance and when we got our total package”. New Zealand”. suppliers, and the Bangers to insurance [F&I] to their customers. “I never thought it was “We expanded into Australia in a Bluff car rally. These events have I was there four years, which took something I would do for a large joint business in 2000. We were there raised more than $400,000 for me through to Protecta.” part of my working life, but I’ve for six years and learnt a lot from that various charities.” During his time with Honda, enjoyed working with car dealers. company. Like any divorce, it was Glading noticed a need in the They’re great to talk to and are a hard, but I think the experience we INDUSTRY DEVELOPMENTS automotive industry. “Most unique type of business people. gained was tremendous.” Glading says plenty of challenges 

20 www.autofile.co.nz industry profile

The Protecta team in 1995. Stephen Glading is seated front row, third from right Glading at the 2016 NZ Car of the Year awards

t are going on globally, and Protecta while franchises may become “We’ve always aligned to support Phil in developing and is monitoring legislative changes service centres also selling ourselves with an A-rated insurer expanding Protecta. across the Tasman where “harsher second-hand cars. “Distributors to ensure our agents and their “I’m not planning to exit the controls have been put on what may become more involved in customers are offered the best company, but will not be in the can be earned through F&I”. the sales process, so dealers don’t security. In New Zealand, there office all the time. My wife and “A lot of product in Australia need to hold stock. It could go has never been an A-rated insurer I have always enjoyed travel, hasn’t been fit for purpose, but down that track.” that’s gone into receivership.” and this is an opportunity to we’ve got it right in New Zealand,” As for Protecta, “fortunately, spend more time at our holiday he told Autofile. we have some good operators LOOKING TO THE FUTURE apartment in Noosa.” “We were the first insurance who didn’t experience a Glading is in a “transition stage” this The couple’s favourite provider to join the Financial slowdown last year”. year, from an executive position to destinations so far include cruising Service Federation [FSF]. It’s He adds: “We’re cautious who a non-executive one. the Kimberley from Darwin to representing the industry with the we deal with. We have invested “We’ve appointed a chief Broome, the Galapagos and Greek Commerce Commission, which millions in IT. The reporting and executive, Philip Hibbert, to do islands. “We’ve planned a cruise to date has concentrated on underwriting from that is some what I have done in the past. It’s around the Seychelles in April, products that are fit for purpose of the best. We provide online great to have someone younger back to Hawaii in July and then the with intermediaries receiving a tools for dealers and a massive on-board who can bring fresh Sunshine Coast in September, so ‘reasonable commission’. reporting database behind it. ideas to the table. I will be there it’s a busy year ahead.” “That’s a better way of dealing with it than what Australia has done. Through the FSF, we already ensure dealers are trained to sell A passion for wheels the right cover to the right person via our online systems. Stephen Glading jointly owned his and she was glad I hadn’t picked “New Zealand is still first vehicle – a grey Morris Minor her up in the Hillman,” he laughs.

reputational. If we or our agents – with his father when he was 16, Glading, who grew up in Stephen Glading’s first car incorrectly sell products and this but didn’t own it for long. Pakuranga and still lives in was a Morris Minor gets into the news, there would be “I decided it was in my best Auckland’s eastern suburbs, has now a reputational risk for Protecta and interests to get my own car driven an Audi for some time. myself as its owner.” because I couldn’t do anything to “I’ve had about 12 Audis Glading believes the industry is it and had to ask if I could use it. over the years from the same in a good space, but it’s governed “I had a part-time job back then dealership. I enjoy my relationship by the state of the economy and and saved for my own vehicle. I with Continental Cars and Kerry housing market. bought a cream-coloured Ford Hoffman, senior sales executive. I He then bought this Ford Anglia before acquiring a Ford Capri, below “We say there’s a housing Anglia when I was 18 and put a red like the personal touch and would shortage, but all of a sudden it stripe down it before upgrading to have trouble buying a new car off could go the other way. If housing a Hillman Hunter.” the internet.” goes pear-shaped, what will that Soon after, he acquired a His current drive is a dark-blue do to the motor-vehicle market.” metallic turquoise Ford Capri, the 2018 S5. “I always want something Glading believes the industry week before he asked his then- different in the range. It has the will go “further down the road girlfriend – now wife – out to a same paint on its wheel trims as its  of direct selling off the internet”, dance. “The Capri impressed her body. People remark about that.”

www.autofile.co.nz 21 Attitude determines your altitude very customer is there, on Therefore, training the case nowadays. in which you approach clients your dealership, for a reason generally evolves on Once you can and your attitude towards them. – and that’s to purchase a the ground as you identify why a customer The areas where you can have Emotor vehicle from you. deal with clients, and didn’t purchase from a positive influence over the They are not there for fun, to listening and taking you, you can then begin customer’s journey and process pass their time, or waste your time. tips from peers, to make changes in need to be relentlessly refined. They are there to make a purchase which unfortunately the business, where The ones that are outside your from you – whether that be today, is where it can all required, to increase control – such as not having the tomorrow, or next month. start to go wrong MARK GREENFIELD conversion to a sale. exact right model to meet their It’s important to remember to with perceptions, Motorcentral Price is generally requirements – can certainly respect all of your customers for assumptions and judgement. featuring as the reason for a lost have actions taken that increase who they are, and what they are That can especially be the case sale less than 20 per cent of the your probability of a sale as you there to do. when the reality is, one person’s time. do your best to find them that Buyers are not liars. Buyers are failure can be another’s success. Converting more of what you product. simply buyers, so ensure you take The same customer on the already get should be the starting At the end of the day, whether a proactive, engaged approach same vehicle with two different point when identifying ways to a customer purchases from you with every single customer with dealerships and sales people can boost sales. is always going to be a variable the mindset that you can, and have very different outcomes. If This becomes first and outcome. Therefore, it’s critical will, help them purchase a vehicle they don’t buy from you, they will foremost ahead of spending more that all is done along the way from you. purchase elsewhere. money on advertising, which following the process, which An old Zig-Ziglar saying “your increases the probability of the attitude determines your altitude” outcome resulting in a sale. is applicable in this case, and I would go as far as saying the that your sales success can be “Converting more of what average dealership could increase determined by your approach its sales by 10 per cent each the moment you engage with a you already get should be the month through reviewing and prospective customer, and work implementing a customer-centric with them on their journey. starting point when identifying process from the beginning to Quite often new sales people end. Here are some tips that start out new in the job with the ways to boost sales” should help: right optimistic attitude only to  Understand why customers be influenced by others, who When that customer leaves certainly has its place to generate didn’t purchase. Do something have been doing it longer, to the dealership never to be seen more leads, but you want to about it. lower expectations. again, the majority will jump to ensure you maximise your  Understand how attitudes For an industry that’s responsible the conclusion, or excuse, that conversion of those leads to get determine the altitude and do for a serious amount of transactions, they weren’t real buyers, just tyre- the best return on investment. something about it. it’s highly undertrained with regards kickers, or that it was all about This takes a deeper  Decide that 2019 is going to be to sales and many fall into it as price and you just couldn’t get understanding of the customer even better than 2018. Then do something to do. down to their level. journey – where they fall off and why. something about it. This also highlights the There are examples across It’s also important to review opportunity for improvement, the many dealerships using your successes and identify The dealer solutions team at Motorcentral is especially considering vehicle the “did not purchase survey” variants between the two. In this always there to engage with any dealership sales people are dealing with tool component of BuyerScore detail lies key lessons that for that’s keen to understand, learn and evolve its processes. Your success is our success, it’s one of the biggest purchases in a that are learning these old many will de-bunk assumptions, that simple. Phone 0800-623-687 or email customer’s life. assumptions are definitely not which can then influence the way [email protected].

22 www.autofile.co.nz news Attitude determines your altitude Company moving headquarters utohub NZ is relocating Road were officially opened on into new premises at a January 11. The occasion included location that will see it a visit by Masatoshi Abe, president betterA placed to meet its ever- of the Heiwa Auto Group, and growing business requirements. senior Japanese management, as The vehicle shipping and well as other guests from Japan logistics company will soon and the automotive industry in be shifting from its offices in this country. Kumeu, north-west of Auckland, John Davies, who formed to Hobsonville. Autohub NZ, addressed the “This move will hopefully guests. “We thank everyone for take place in two weeks and has the support they’ve given us been two years in the making,” over the years. We would be Masatoshi Abe with John Davies says Frank Willett, chief executive nothing without you. Autohub’s premises in Hobsonville officer of Autohub NZ. “It’s “For me, the office well-needed because we have construction is quite special. This outgrown our old headquarters. is probably the last project for “Our new location is slightly Autohub that I will take point on. more central, and easier for staff “From now on, I become and clients to get to. We’re now a consultant to Autohub. I’m looking forward to providing pushing 66 and it’s time to hand the same, if not better, services over the daily jobs to younger and from a more modern and better wiser people. For me, this is it and working environment.” I’m so relieved I can hand over to The offices at 102c Hobsonville Frank Willett and the team.” Funding secured for port fuel-cell vehicles

orts of Auckland Ltd refuelling and provides greater (POAL) has been approved range than batteries.” for part-funding from POAL will fund construction Pthe government’s low-emission of the facility, which will produce vehicles contestable fund to buy hydrogen from tap water. The hydrogen fuel-cell (HFC) vehicles. process uses electrolysis to split The port and its project water into hydrogen to be stored partners will now procure three for later use, and oxygen, which is HFC cars and one bus as part of a released into the air. wider project to build a hydrogen Vehicles will be able to fill fuel-production plant. up with hydrogen at the facility, The grant from the fund, An artist’s impression of Ports of Auckland’s proposed hydrogen production and refuelling facility which should be operational by which is administered by the end of the year. the Energy Efficiency and success of a project such as this, cell, hydrogen is combined with The process is just like topping Conservation Authority, will which is breaking new ground in oxygen to produce electricity. up a car with LPG and its only by- provide 14 per cent of the an effort to stem climate change. Tony Gibson, POAL’s chief product is water. estimated cost of the four “That is why we’re working executive, says: “We have an Ports already involved in vehicles. with Auckland Council, Auckland ambitious target to be a zero- trialling hydrogen usage include As announced last year, Transport, KiwiRail and Arup [an emissions port by 2040. To Los Angeles, Long Beach, POAL has committed to build independent firm of engineers meet that, we need a renewable Honolulu, Valencia and Rotterdam. a hydrogen production and and technical specialists]. Having and resilient power source for Marques, such as Toyota, refuelling facility at its Waitematā government support as well is a heavy equipment, such as tugs Hyundai, Audi and Honda, have port in what will be a first for real boost.” and straddle carriers, which are developed hydrogen-powered Auckland. Zero-emissions HFC vehicles difficult to power with batteries. vehicles, Norway and San Rosie Mercer, the port’s are a type of electric vehicle, but “Hydrogen could be the Francisco are trialling hydrogen hydrogen project manager, powered by hydrogen fuel cells solution as it can be produced ferries, and hydrogen-powered says: “Collaboration is key to the rather than batteries. In the fuel and stored on-site, allows rapid trains are in use in Germany.

www.autofile.co.nz 23 tech report Avoiding flawed solutions to safety he challenge of improving but every vehicle fares While I don’t disagree, heavy EVs is absurd as it impairs road safety is a favourite poorly in a crash with continuing to drive efficiency. topic of discussion with me a more massive one. up the fleet’s mass by We should have policies that and,T of course, it’s a hot topic for This fact is intentionally introducing heavier work together to promote a single the government. obfuscated by only vehicles will have the outcome, which should be a lighter, I continue to be convinced our rating vehicles of similar same effect on light safer and more efficient fleet. approach to safety is misleading, mass against each other. vehicles already in the Adopting this proposed definition incomplete and perhaps, in many This system gives buyers fleet. also allows us to consider potential cases, counterproductive. a false sense of security. Kit Wilkerson Researchers in harm from emissions within the Policy adviser and analyst As of October, there were 128 In addition, vehicle [email protected] the US support this. definition of safety, with mass again people killed in multi-car crashes, mass is generally They discovered that being the primary factor. 48 people died in single-car inversely proportional decreasing light-vehicle New Zealanders should have accidents, and three cyclists and to efficiency. So, a “safe fleet” mass had an adverse effect on the one rating to help their buying 17 pedestrians killed by vehicles in means an ever-more massive road toll. They also found, however, choice – good car, not so good. New Zealand. and less-efficient one. Hiding the that decreasing the mass of heavier Those wanting to buy vehicles that It’s worth noting there have fact light, efficient vehicles will vehicles will have the opposite cause more social harm can pay been several reported incidents always fare poorly in this system is effect by reducing fatalities and extra for putting others at risk. between cyclists, and cyclists disingenuous. serious injuries. The solution should So what could this rating system and pedestrians, resulting in no I propose we flip our definition be to decrease both. do and look like? We should start fatalities or serious injuries. These of safety on its head. A by building a single vehicle- numbers are from the NZTA’s “safe” vehicle shouldn’t Fuel economy versus mass rating system. These ratings crash-analysis system. be one that simply does wouldn’t be broken down As Albert Einstein once a better job at protecting into segments that artificially quipped, “we cannot solve our occupants. Rather, a and arbitrarily obscure problems with the same thinking “safe” vehicle should be relative vehicle safety. They we used when we created them”, one that contributes less would primarily be based and most solutions I’ve heard on direct or indirect harm. on mass then modified by addressing the fleet’s safety and Research has shown second-order factors, such age seem to do that – doubling on primary factors that as specific safety features. flawed solutions that have got us lead to fatalities are all Owners would pay a to where we are. related to the driver. “safety” fee at registration It often seems people think a Well, all factors but one – that partially or wholly goes safe roadway is one filled with tanks, the difference in vehicle into an escrow account for vehicles designed to maximally mass in multi-vehicle that vehicle. The amount protect occupants by mandating crashes. Safety features are Another problem with the that’s paid every year is based on ever-more safety features. second-order factors due to their current definition of safety is it the safety rating relative to the This approach has one small influence. For instance, the promotes solutions that are counter average fleet rating. That account conclusion – an arms race difference in mass is seven times to other initiatives under way. is then paid out to the last owner driving up vehicle mass. The more influential than having We want to increase the when the vehicle is scrapped. ineffectiveness and absurdity of airbags. fleet’s efficiency as exemplified This not only incentivises the this approach is obscured by the The obvious objection to this by electric-vehicle (EV) uptake. ownership of safe vehicles, but also artificial way we divide vehicles idea is that introducing lighter While there are five-star EVs, that’s incentivises removing unsafe ones into commercial-market segments, vehicles will lead to an increase misleading as they are generally from the fleet at an earlier age by especially for safety ratings. in the road toll as these lighter lighter vehicles that will always creating minimum values when The government wants to get vehicles simply will not fare well fare poorly against even average vehicles become worth more to rid of one and two-star vehicles, against heavier ones on the road. vehicles on our roads. But building scrap them.

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Imported Motor Vehicle Industry Association

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MARK BALLANTYNE and GARRET hen coming As with the 90-day PELSER have been appointed back to work trial period, you should as dealer solution consultants by recharged have a robust process that Motorcentral. Wand raring to go, some allows for a fair process. Ballantyne’s in-depth experience realities can’t be avoided If you have 20 or more has been gained from various Mark Ballantyne Garret Pelser and we need to steer clear employees and have the aspects of the mechanical workshop of that sinking feeling. 90-day trial clause in your Will Allan industry. He worked for SAM Computer Systems for more than 16 years However, some agreement, I recommend Hello Monday in technical, support, consultant positions, and for the past two years in significant changes to updating it with a sales and business development. employment legislation are probationary clause if you don’t Pelser joins Motorcentral with a wealth of experience. Most recently, approaching that everyone in the have one. he was a business adviser and business development manager with automotive industry needs to be the Motor Trade Association. This involved looking after dealerships, aware of. DOMESTIC VIOLENCE workshops and petrol station members. In mid-2018, the Domestic Violence EMPLOYMENT RELATIONS Act passed its third reading and CHRIS ROE is the new head of Mini NZ. He has more The Employment Relations comes into effect on April 1. than 20 years’ experience with the BMW Group and Amendment Act 2018 was passed The amended legislation aims takes up the job as the marque celebrates its 60th in December to improve fairness in to enhance protection in the anniversary. the workplace, and deliver decent workplace for people affected by Originally from the UK where he held dealership conditions and fair wages. The domestic violence. technical positions, he joined the group in New Zealand during 2005. changes come in on May 6. It amends other legislation Since then, Roe has held product and sales-related roles in the The act restores protections for including the Employment Relations company, most recently as BMW’s head of sales for this country. employees – especially vulnerable Act, Health and Safety At Work Act, people – and strengthens the role Holidays Act and Human Rights Act. CHRISTINE STEVENSON has been appointed of collective bargaining. Many The new law entitles employees comptroller and chief executive of the NZ Customs of the changes are familiar to affected by domestic violence up to Service after being acting comptroller since July 2017. businesses in a union environment 10 days of paid leave per annum to She leads about 1,200 staff and, in 2018/19, because they roll the law back to deal with the effects of such violence. the customs operating budget was $230 million. how it was as recently as 2015. Staff will be entitled to take Stevenson advises the government on border security, border Key changes include reinstating domestic violence leave as required management and customs revenue, and works with international prescribed meal and rest breaks, in the same manner as sick and organisations. strengthening collective bargaining bereavement leave. and union rights, restoring Employers will need to make EDDIE CHRISTIAN has been appointed group protections for vulnerable workers, a provision in payroll systems manager of market engagement at the Energy such as those in cleaning and to account for and capture this. Efficiency and Conservation Authority. catering regardless of the employer’s Along with this is a process of how His goals include building strong relationships size, and limiting 90-day trials. someone impacted by domestic and engaging with business leaders to show the Most changes take effect in two violence can apply for this leave. value the authority can bring to operations. He’s also taking a lead stages – from December 2018 and This is a sensitive area and we position in climate-change efforts. May 6 this year. encourage dealership staff to have Christian has experience in banking and finance gained here and Depending on your dealership’s some training or process managers overseas. He was previously a naval officer, and held executive roles in size, the 90-day trial period will and leaders can undergo so they Singapore, the Middle East and New Zealand. impact you the most unless there’s feel comfortable if approached by a union presence at your business. a colleague experiencing domestic KEN SHIRLEY stepped down These trial periods will only violence or when a request for as chief executive of the Road apply to businesses with less leave has been made. Transport Forum at the end of last than 20 staff. The changes mean Underpinning these changes is a year after taking up the position most people will have protections view to enhancing legal protection in 2010. against unjustified dismissal from for victims, and giving them a Ken Shirley Nick Leggett He says he enjoyed working for an when they start a job. source of relief and assistance. If you industry for the past eight years that literally drives the economy. Businesses with 20 or more are unsure how to approach the Nick Leggett, former two-term Mayor of Porirua, has replaced him. employees can continue to use training, please do give me a call. For the past year, he has been executive director of the New Zealand a probationary period to assess These are all significant Alcohol Beverages Council. a worker’s skills against the role’s changes to be aware of and responsibilities. This lays out a fair prepare for. If you are unsure or process for managing performance need further advice and guidance, TO FEATURE IN INDUSTRY MOVERS EMAIL [email protected] issues and ending employment if please don’t hesitate to email me they are unresolved. at [email protected].

26 www.autofile.co.nz f & i focus Quality rider training delivers results rotecta Insurance has simple techniques that are made to turn inside its partnered with Passmasters gradually linked together own full lock, proving that Rider Training to deliver in increasingly challenging with the right technique Pmotorbike training with a twist – courses as the skill levels any bike can be used to learning slow-speed skills. improve. complete the challenges This is an often overlooked Once the formal laid out. part of riders’ ability and an lessons end, the riders are Combined with a area many lack confidence in. free to go back over any barbecue lunch, the result To counter this, Passmasters courses they choose with is a fun-filled and action- has come up with a series of an instructor on-hand at packed day with feedback challenges based on the training each course to continue from participants being for police riders that’s designed to providing feedback, tips overwhelmingly positive. build confidence and ability while and tricks. Walter Rands-Trevor at the Protecta and Bonneville Salt Flats, Utah manoeuvring bikes at low speeds Riders all seem to have Passmasters have already and in tight spaces. their own favourite courses, familiar with the courses before run two of these days with more There are no more than five or with some of them being very tackling them on their own ones. than 100 people taking part so six participants to an instructor addictive as they become Also on-hand are a couple of far as an exclusive benefit for with them being grouped together determined to master more police riders and an ambulance Protecta customers. based on their types of bike. complex challenges. rider, who are more than capable The next course is being This ensures everyone The riders are encouraged of tackling the courses even with arranged for March 30. There are gets plenty of support as they to use their own two-wheelers the bikes being in full duty trim also plans for days when non- undertake the courses and that as much as possible, but with a – complete with lights, sirens, Protecta customers can join in. the techniques they learn are fleet of training bikes available panniers, radios and so on. Call 09-947-9409 to secure a place. relevant to the bike they’re riding. many take advantage of using the It’s certainly impressive to see Walter Rands-Trevor, motorcycle insurance, The day starts with learning light, nimble motorcycles to get a fully laden police bike being Protecta Insurance

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www.autofile.co.nz 27 motorsport

SPEED DIARY Back to the future, slowly 6 Feb FIM MotoGP Official Test - Sepang, he TCR tin-top category Malaysia in New Zealand is now 8 -10 Feb looking more of a certainty. Speed Works Motorsport TWith numbers managed Championship - Manfeild Circuit Chris by limiting each brand to four Amon, Feilding representatives, the category aims 9 Feb to avoid undue influence from any Andros Trophy Ice Races - Stade de France, Paris one automotive brand. 14 - 17 Feb Australia is likewise being World Rally Championship cautious about how it introduces - Rally Sweden the TCR category, hoping to avoid World Championship for Cross- Country Bajas - Northern Forest Rally, the stand-off between the V8s and Russia two-litre TOCA supertourers that A concept image of Gen II BNT V8s 15 Feb happened in the mid to late-1990s. NASCAR Gander Outdoors Truck Series The worldwide appeal of the throng is Toyota, which has been opening the category to two-door - Daytona International Speedway, USA category rests in its affordability, showing its Advan-branded Corolla body styles from Dodge with its 15 - 17 Feb with a pre-loved TCR car coming in Sport TCR at motor shows. Challenger, Ford and its Mustang Ferrari Challenge - Sakhir, Bahrain well under $200,000 ready to race. Meanwhile, with the demise and Chevrolet’s Camaro. 16 Feb There are now 25 marques of the Falcon and ’s switch The Gen II chassis will be built - ABB Formula E Championship committed to the category globally to a World Car version of the by Mitchell Race Xtreme. It will be Mexico City, Mexico Prestone British Rally Championship - and 30 different models – the extra Commodore, there is a move to based on the current class-one Conwy Cambrian Rally, Wales five being dual-entry applications. revitalise the NZV8 category with a TLX chassis already competing in - Daytona NASCAR Xfinity Series One of the latest to join the second generation of eligible cars the series. International Speedway, USA 17 Feb Monster Energy NASCAR Cup Series - Daytona International Speedway, USA NASCAR Can-Am Duels 1 & 2 - Daytona Entrants from classics to modern cars International Speedway, USA fter 100-plus years of 21 - 26 Feb speed, the Leadfoot World Cup for Cross-Country Rallies Qatar Cross-Country Rally Hillclimb on Rod Millen’s A“ranch” on the Coromandel always 22 - 24 Feb Superbike World Championship - Phillip attracts some special machinery. Island, Australia One of the most “experienced” F3 Asian Winter Series - Sepang, Malaysia entries at this year’s event was a 23 Feb 1915 La France Speedster built Other classics, which entered shredded the silence in Kiwi forests NASCAR Gander Outdoors Truck from the fire trucks the company the event on February 2-3, each autumn. Series - Atlanta Motor Speedway, USA NASCAR Xfinity Series - Atlanta Motor is more famous for and featuring a included a 1947 Bruce McLaren The moderns included several Speedway, USA 14.5-litre engine. Stanford Special, a 1950 Cooper high-powered drift cars headed by 23 - 25 Feb The hillclimb, now in its sixth once driven by Jack Brabham and Mike Whiddett’s RumBul racer and MotoGP Official Test - Doha, Qatar year, draws huge crowds to the a hot-rodded 1951 Citroen Light his MadBul off-road race truck. 24 Feb 150-acre oceanfront and farm 15 with a V8 engine. Among the quicker entries, Monster Energy NASCAR Cup Series estate on the peninsula. Run on Vehicles come slowly up through rally driver Alister McRae – the - Atlanta Motor Speedway, USA the Millens’ 1.6 km driveway that the years to modern circuit and rally younger brother of late World 28 Feb - 3 Mar winds through the property, the offerings, such as a McLaren M8C, Rally champion Colin – raced the Supercars Championship - Superloop event attracts up to 150 entrants Group 4 Ford Escorts, and Group Vantage Aluminium R22 Subaru Adelaide 500, Adelaide, South Australia every year. 2/4 Group B Mazda RX7s that once Impreza coupe.

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28 www.autofile.co.nz motorsport Dream careers spin off passion childhood spent “close to the exhaust pipe”, a mechanical engineering Adegree and now a career in mechanical design for the aerospace engine industry with a seasoning of weekends working with Kiwi Dick Bennetts’ West Surrey Racing (WSR) in the British Touring Car Championship. Richard Oxton is living the dream. The son of top race driver David Oxton has a strong history of kart racing – and race wins – behind him, having progressed from junior grades up to Rotax Max. His best result in karting was Richard Oxton, left, with Neil Allport and father David third overall in the Rotax Light Kartsport NZ North Island Sprint “The 86s were a world away It took out the 2018 title with Colin Championship in 2009. from the E30s,” says Oxton. Turkington at the wheel. Oxton raced the Formula Ford “Requiring more precision and “If you’re West Surrey Racing is a UK- championship in 2007/08 before finesse and always with the based motorsport team run by switching to one-make touring car thought the cars ran on Michelin struggling with New Zealander Dick Bennetts. He is racing in the newly established slicks, meaning cornering speeds responsible for masterminding the BMW E30 series. He was second in were higher, but the car was a line or set-up, careers of such names as Ayrton the E30 champs in 2015. harder to recover if it did exceed you can pick Senna, Mika Häkkinen, Jonathan Interviewed in 2013 as he its grip limit.” Palmer, Rubens Barrichello, stepped up to the Toyota 86 A couple more seasons in the the brains of Maurício Gugelmin and Eddie Championship in a Neil Allport-run BMW Series followed, but Oxton Irvine with his involvement in F3 car, Oxton was full of praise for the was now balancing study with other drivers” and a racing academy in the 80s E30s. He said: “The E30 is a great car motor racing. “Study came first – Richard Oxton and 90s. More recently WSR has and the championship is a superb and my priority was finishing my focused on the British Touring Car way to learn your racing. mechanical engineering degree and digital modelling for a Championship. “It’s forgiving, reasonably quick, at AUT.” company whose clients include “It’s a very competitive safe and the atmosphere in the pit With that accomplished – and Aston Martin and McLaren and the championship in a highly developed lane is very friendly. People are still Oxton said at the time the maths development of their respective motorsport environment,” says racing out on the track, but there’s was daunting – it was off to the UK new road-car designs. Oxton. “We were all over the moon always a barbecue afterwards. If and Europe for the classic Kiwi OE. “There’s a lot of aerospace work when Colin did the job.” you’re struggling with a line or It turns out the family racing too, 3D scans of turbine blades for Does being around top-level set-up, you can pick the brains of gene is a powerful thing. After jet engines and such. It’s very cool.” re-spark the other drivers.” touring Europe in a small Then, on weekends during competitive itch? Of course it does. As he got to grips with campervan, the trip centred on the racing season, he joins the Can Oxton see himself back in the the demands of a mechanical England where Oxton is now WSR squad as it does battle in the driver’s seat? It would be silly to engineering degree, Oxton had working in engineering design British Touring Car Championship. rule that out. a season racing a Toyota 86 at championship level with the assistance of his dad. There he was the second generation of Oxtons to rub wheels with Kiwi motor-racing legend Kenny Smith. A long-time rival and family friend, Smith was running his own car in the 86 championship and would also race the grand prix. The epic years of Smith-Oxton duels in days were briefly rekindled. Oxton, fifth from left, with the West Surrey Racing team Racing in the BMW E30 series in 2015

www.autofile.co.nz 29 disputes

The case: Thirteen months Wrong type of fuel may have contributed following purchase, the buyer’s Holden Cruze was found to have a cracked piston and she wanted to to cracked piston on late-model turbo reject it. She said the car wasn’t as durable as a reasonable consumer would expect. The trader offered to Background more than $5,000 to repair. poor condition due to lack of repair the damaged engine. Elizabeth Jury purchased a 2012 G Autos submitted the maintenance. The tribunal Holden Cruze with an odometer damage might have been caused The adjudicator said, in The decision: ruled the damage didn’t breach the reading of 76,072km for $12,599 from by Jury’s use of 91 octane fuel, certain circumstances, traders Consumer Guarantees Act (CGA) due G Autos Ltd on January 31, 2017. which shouldn’t be used in had an obligation to disclose to the buyer’s length of ownership She believed the car had a good late-model turbo vehicles. The information when, taking and distance travelled in the Cruze service history and assumed it tribunal’s assessor agreed using account of the circumstances of before the fault occurred. would last for some time. However, 91 might have contributed to the the particular case, a reasonable At: The Motor Vehicle Disputes a piston in the engine cracked in engine problem. consumer would expect it to Tribunal, Auckland. March 2018 after Jury had driven The dealer also suggested have been disclosed. about 16,500km in it. it might have been caused In this case, if G Autos had As a result, Jury made enquiries by Jury’s failure to service known of this, it would have information before selling the car. about the car’s service history, the Holden on time, but the had an obligation to disclose Under those circumstances, the including obtaining details from assessor said this was highly it because the information was tribunal wasn’t satisfied the dealer Auto Garage, which had repaired it unlikely. He said a cracked material to any reasonable was obliged to disclose information in January 2017. piston was likely to have been consumer’s purchasing decision. it didn’t know about, or Jury was Jury said the information from caused by detonation within the entitled to any remedy as a result Auto Garage showed that due to combustion chamber, probably The finding of G Autos failing to disclose it. a lack of maintenance, the engine due to using 91. The tribunal found Jury’s use of Further, the tribunal’s assessor was in poor condition before it was Jury also submitted she 91 fuel was not unreasonable advised it was highly unlikely the sold to her. should be entitled to reject the because she wasn’t told by G information about the engine’s G Autos offered to repair the Holden because G Autos failed to Autos she shouldn’t use it and, condition in Auto Garage’s invoice engine, but Jury wanted to reject tell her about its repair history. more importantly, the car owner’s was reliable because an engine it and obtain a refund of the She purchased it believing it had manual stated it could be used. wasn’t typically stripped down purchase price. She said the car a good service history and would The buyer submitted that when replacing a turbo, so its wasn’t as durable as a reasonable last for some time. a reasonable consumer would internal components were unlikely consumer would expect and But after the car broke consider a 2012 Cruze that had to have been inspected. she wouldn’t have bought it if down, she made enquiries travelled about 92,000km should The assessor added it was she had been provided with the about its history and obtained be more durable than it had been. unlikely the Holden’s engine was information from Auto Garage. information from Auto Garage, But the tribunal disagreed in the poor condition claimed by which performed repairs on it in saying the car was as durable as Auto Garage given its reasonable The case January 2017. a reasonable consumer would service history. The tribunal considered this An invoice from Auto Garage consider acceptable taking account The tribunal ruled the engine matter was about whether the showed it replaced the vehicle’s of its price, age and mileage at time damage didn’t breach the CGA’s Cruze was of acceptable quality turbo and noted “engine of purchase, the length of Jury’s acceptable quality guarantee. under the terms of the CGA and internals in poor condition due ownership and distance travelled In addition, G Autos didn’t – in particular – whether it was to lack of maintenance”. since purchase. have an obligation to disclose as free of defects and as durable Jury said she wouldn’t have The tribunal accepted the information from Auto Garage as a reasonable consumer would bought the car if she was aware evidence from G Autos that it about the condition of the engine consider acceptable at the time of this, and G Autos should have didn’t know about Auto Garage’s because it didn’t have access to of purchase. sought out and disclosed this invoice. It didn’t own the Cruze that information. Schofields Holden assessed the information to her. The dealer at that time and there was no engine, diagnosed a cracked piston said it had no knowledge of the evidence to show the trader Order and estimated that it would cost invoice or that the engine was in had been made aware of this The claim was dismissed.

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30 www.autofile.co.nz disputes

The case: Almost two years after Purchaser lost the opportunity to sell his purchasing a 2005 Atenza, the buyer discovered his car was a damaged import. He complained to the trader, damaged import at a fair market price saying it had breached the Fair Trading Act (FTA) by not sharing that information with him. The seller told Background trader saying he was lodging a its then mileage of 149,000km. the buyer he didn’t know what he was When Samuel Whitcombe tried case with the tribunal seeking The estimates also took into talking about and banned him from to sell his 2005 Mazda Atenza a full refund of the Mazda’s account the Atenza was imported the dealership. through Turners Car Auctions in purchase price of $12,995. In as damaged. The valuations The decision: The tribunal ordered October 2017, he was told it was evidence, the buyer produced a indicated values of about $10,000, the dealer to pay the purchaser the a damaged-imported vehicle and CarJam report that stated it was while Turners’ expected auction $7,900 trade-in value of the vehicle Turners refused to deal with it. imported as damaged. price was around $8,000. and collect it. Whitcombe then lodged a Whitcombe also produced an The tribunal asked Whitcombe At: The Motor Vehicle Disputes claim with the tribunal against A email from the NZTA stating the to obtain trade-in values for the Tribunal, Dunedin. Grade Wholesales Ltd, which sold vehicle had been imported with car, which assumed it wasn’t him the car in December 2015. rust damage. A repair certificate imported as damaged to reflect He said the trader failed to was issued on July 4, 2015, and the amount of money he would consequence to the purchaser, disclose the Mazda had been the Mazda was approved for receive if he had sold it to a dealer. then the purchaser should imported into New Zealand as registration three days later. Whitcombe said he was reasonably expect to be told damaged. The trader’s representative unable to provide the valuations about it. The dealer had stated on the Harneel Dave, said it had requested by the adjudicator. In this case, the tribunal ruled vehicle’s consumer information imported the Mazda in 2015 However, during the hearing, it was appropriate to consider notice (CIN) that it was not knowing it was damaged. He Midway Motors confirmed any orders under the FTA in imported as damaged. said the car had been repaired the trade-in value would have regards to loss or damage faced Whitcombe claimed this action but, unfortunately, the repair been $7,900 assuming it wasn’t by Whitcombe in relation to the by the trader was a breach of the certifier didn’t have the damage imported as damaged. likely trade-in value of his Mazda FTA because it had affected the flag removed. In this case, the tribunal because he had tried to sell the true value of his car. Dave told the tribunal it was decided it was appropriate to car as a trade through a dealer. too late to do anything about this use the trade valuation as he was Due to the fact the car was The case error because the repair certifier trying to sell it through a dealer. imported as damaged, the buyer The buyer discovered his car had had retired. A Grade Wholesales claimed found he was unable to sell it to a been imported as a damaged The tribunal said it was clear the Midway Motors’ estimate was trader. vehicle on October 2, 2017. dealer didn’t dispute the Mazda too high. The trader said it had The purchaser had presented That same day, he complained was imported as damaged and previously offered Whitcombe evidence during the case that no to the trader saying its a damage flag should have been $6,000 to purchase his vehicle back. car dealer would buy the Mazda at representation of the vehicle as reported on its CIN. Whitcombe had counter- anything approaching its correct not being a damaged import Whitcombe said he had been offered A Grade Wholesales the market value because it was breached the FTA and affected unable to sell the vehicle to opportunity to purchase the car for flagged as damaged. its true value. He made several Turners because of its imported-as- $8,500 before the hearing. Therefore, the buyer had lost attempts to get the trader to damaged status. the opportunity to sell the vehicle respond to his complaint. Chris Henderson, of Midway The finding at a fair market price. Eventually, Whitcombe said Motors, stated he was unable to The tribunal found the dealer’s the dealer told him he didn’t trade the car because “a damaged failure to disclose to the buyer the Order know what he was talking vehicle has such a stigma in today’s Mazda was an imported-damaged If the buyer still wanted the about and he was banned from market that it’s unsellable on a vehicle constituted misleading dealer to take back the car, the entering A Grade Wholesales’ car retail sales [yard]”. and deceptive conduct under tribunal ruled the trader was yard in Mosgiel. Whitcombe produced four section nine of the FTA. to pay him its trade-in value of In November, Whitcombe got estimates from dealers about Basically, if something is $7,900 and collect the vehicle at a friend to deliver a letter to the the vehicle’s retail value with known by the vendor to be of its own cost.

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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A Palmerston North Masterton Wellington Nelson y Total new cars Blenheim Greymouth Westport Christchurch Timaru Total imported used cars Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne 9,942 Napier New Plymouth Wanganui Palmerston North 11,598 2018: 10,798  7.9% J Masterton Wellington Nelson Blenheim 2018: 13,719  15.5% YOUR FIRST CHOICE IN SHIPPING Greymouthan Whangarei Auckland Hamilton Thames9 uar y 201

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NEW: 4,831 2018: 5,213 7.3% NEW: 422 2018: 374 12.8%  MPI inspections  Odometer verifi cation USED: 5,232 2018: 6,302  17.0% USED: 458 2018: 544 15.8%  Insurance  Delivery nationwide Hamilton Rotorua NEW: 604 2018: 639 5.5% NEW: 169 2018: 159 6.3% USED: 744 2018: 870 14.5% USED: 152 2018: 228 33.3%

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NEW: 157 2018: 200 21.5% NEW: 47 2018: 69 31.9% USED: 186 2018: 196 5.1% USED: 71 2018: 71 0.0%

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NEW: 82 2018: 111 26.1% NEW: 231 2018: 240 3.8% USED: 121 2018: 134 9.7% USED: 306 2018: 279 9.7%

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NEW: 260 2018: 296 12.2% NEW: 106 2018: 105 1.0% USED: 392 2018: 368 6.5% USED: 85 2018: 97 12.4%

Nelson Wellington

NEW: 107 2018: 117 8.5% NEW: 729 2018: 860 15.2% USED: 245 2018: 321 23.7% USED: 849 2018: 1,073 20.9%

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NEW: 12 2018: 19 36.8% NEW: 1,299 2018: 1,405 7.5% USED: 31 2018: 44 29.5% USED: 1,519 2018: 1,860 18.3% LATEST SCHEDULE Timaru NEW: 82 2018: 85 3.5% USED: 127 2018: 114 11.4% Carrera Lake Taupo Triumph Carrera Port Calls v 1903 v 1904 v 1905 v 1906 Oamaru NEW: 7 2018: 14 50.0% Moji – 15 Feb – 15 Mar USED: 23 2018: 16 43.8% Osaka 1 Feb 16 Feb 3 Mar 17 Mar Dunedin NEW: 302 2018: 301 0.3%

JAPAN Nagoya 2 Feb 17 Feb 5 Mar 18 Mar USED: 400 2018: 435 8.0% Yokohama 3 Feb 18 Feb 6 Mar 19 Mar Invercargill NEW: 144 2018: 181 20.4% Auckland 19 Feb 8 Mar 22 Mar 6 Apr USED: 215 2017: 230 6.5% Wellington 26 Feb 12 Mar 10 Apr 10 Apr Lyttelton 2 Mar 11 Mar 9 Apr 9 Apr Your Vehicle FINANCE TO SHIFT Y OUR Import Finance

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Phone 0800 ArmACuP (0800 276 2287) Shipping to To find out more visit us at email [email protected] www.blackbirdfіnance.co.nz or www.armacup.com call us on 0800 000 999 www.autofile.co.nz 33 www.enhance-auctions.com

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

Jan ’19 2019 YEAR 2019 Jan ’19 2019 YEAR 2019 Mkt Make Jan ’19 Jan ’18 +/- % Make Model Jan ’19 Jan ’18 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE share Toyota 2,450 3,232 -24.2 21.1% 2,450 21.1% Mazda Axela 633 653 -3.1 5.5% 633 5.5% Nissan 2,328 2,629 -11.4 20.1% 2,328 20.1% Suzuki Swift 563 619 -9.0 4.9% 563 4.9% Mazda 1,873 2,310 -18.9 16.1% 1,873 16.1% Nissan Tiida 553 575 -3.8 4.8% 553 4.8% Honda 1,270 1,356 -6.3 11.0% 1,270 11.0% Honda Fit 551 533 3.4 4.8% 551 4.8% Subaru 653 809 -19.3 5.6% 653 5.6% Mazda Demio 446 588 -24.1 3.8% 446 3.8% Suzuki 653 722 -9.6 5.6% 653 5.6% Toyota Prius 336 275 22.2 2.9% 336 2.9% Mitsubishi 552 440 25.5 4.8% 552 4.8% Mitsubishi Outlander 328 244 34.4 2.8% 328 2.8% Bmw 417 523 -20.3 3.6% 417 3.6% Toyota Wish 286 308 -7.1 2.5% 286 2.5% Volkswagen 391 445 -12.1 3.4% 391 3.4% Nissan Leaf 281 242 16.1 2.4% 281 2.4% Audi 177 250 -29.2 1.5% 177 1.5% Subaru Legacy 267 398 -32.9 2.3% 267 2.3% Mercedes-Benz 149 210 -29.0 1.3% 149 1.3% Mazda Premacy 252 219 15.1 2.2% 252 2.2% Lexus 104 97 7.2 0.9% 104 0.9% Toyota Vitz 244 282 -13.5 2.1% 244 2.1% Ford 90 115 -21.7 0.8% 90 0.8% Subaru Impreza 226 199 13.6 1.9% 226 1.9% Volvo 64 65 -1.5 0.6% 64 0.6% Mazda Atenza 217 280 -22.5 1.9% 217 1.9% Land Rover 50 42 19.0 0.4% 50 0.4% Nissan Note 212 198 7.1 1.8% 212 1.8% Chevrolet 44 65 -32.3 0.4% 44 0.4% Nissan Dualis 210 198 6.1 1.8% 210 1.8% Jaguar 41 57 -28.1 0.4% 41 0.4% Nissan X-Trail 170 149 14.1 1.5% 170 1.5% Dodge 37 38 -2.6 0.3% 37 0.3% Toyota Aqua 169 52 225.0 1.5% 169 1.5% Holden 31 46 -32.6 0.3% 31 0.3% Honda Stream 148 146 1.4 1.3% 148 1.3% Porsche 28 27 3.7 0.2% 28 0.2% Toyota Corolla 142 193 -26.4 1.2% 142 1.2% Mini 24 37 -35.1 0.2% 24 0.2% Toyota Auris 141 193 -26.9 1.2% 141 1.2% Hyundai 23 27 -14.8 0.2% 23 0.2% Toyota Blade 139 179 -22.3 1.2% 139 1.2% Chrysler 22 17 29.4 0.2% 22 0.2% Toyota MarkX 112 263 -57.4 1.0% 112 1.0% Jeep 22 23 -4.3 0.2% 22 0.2% Nissan Skyline 106 125 -15.2 0.9% 106 0.9% Kia 10 9 11.1 0.1% 10 0.1% Nissan Bluebird 101 127 -20.5 0.9% 101 0.9% Talbot 9 0 900.0 0.1% 9 0.1% Nissan Serena 101 70 44.3 0.9% 101 0.9% Daihatsu 8 8 0.0 0.1% 8 0.1% Mazda Verisa 101 118 -14.4 0.9% 101 0.9% Buick 6 1 500.0 0.1% 6 0.1% Honda Odyssey 94 168 -44.0 0.8% 94 0.8% Renault 6 14 -57.1 0.1% 6 0.1% Nissan March 92 118 -22.0 0.8% 92 0.8% Smart 6 4 50.0 0.1% 6 0.1% Bmw 320i 86 102 -15.7 0.7% 86 0.7% Range Rover 5 0 500.0 0.0% 5 0.0% Nissan Juke 86 90 -4.4 0.7% 86 0.7% Alfa Romeo 3 3 0.0 0.0% 3 0.0% Honda Crv 84 116 -27.6 0.7% 84 0.7% Bentley 3 9 -66.7 0.0% 3 0.0% Toyota Ractis 78 97 -19.6 0.7% 78 0.7% Cadillac 3 1 200.0 0.0% 3 0.0% Mazda Cx-5 77 79 -2.5 0.7% 77 0.7% Ferrari 3 3 0.0 0.0% 3 0.0% Mitsubishi Galant 77 43 79.1 0.7% 77 0.7% Others 43 85 -49.4 0.4% 43 0.4% Others 3,889 5,480 -29.0 33.5% 3,889 33.5% Total 11,598 13,719 -15.5 100.0% 11,598 100.0% Total 11,598 13,719 -15.5 100.0% 11,598 100.0%

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34 www.autofile.co.nz www.heiwa-auto.co.nz ‘Tough’ times ahead for trading here was a sizeable drop-off owns Westwyn Trading Company to spend that money’, ‘do I feel “They’re asking themselves, in first-time registrations of in Auckland. “I don’t see any confident about my job’ and ‘do I ‘what can I afford’, ‘what are the used-imported cars in New glimmer of hope for 2019 or feel confident about the economy’. essential parts of my business I can TZealand last month. much improvement on 2018, We often see that first before there keep funding’ and ‘what do I need Sales came in at 11,598 units – a which was really difficult for are other indicators in the market. to pin down to keep it operational’, decrease of 15.5 per cent on 13,719 trading conditions. “We did see a bit of a fall away so it’s the perfect storm to be in January 2018. “We were hit by a number of in 2018, I’m talking personally going out to the industry saying, This resulted in the worst different issues – sometimes all here. But I think across the ‘we need continued support if we January for registrations of used- at the same time – making the market, dealers who I talk to all are to support you’. imported cars since January 2014. importation of vehicles, from have a similar sentiment and “Yet the need for the However, when compared to Japan particularly, a hard market that there was a bit of a drop in independent voice and advocacy of December 2018, sales rose by 4.9 to be in. consumer confidence. I don’t see VIA has, arguably, never been greater per cent and 537 units last month. “When it comes to people’s that changing this year, especially than in these unsettling times. Toyota was last month’s top- private vehicles, we’ve seen a if property prices start to soften a “VIA has to either change the selling used-imported car brand drop in confidence in updating bit further.” model for funding and spread of with 2,450 registrations, which was purchases especially in the lower As for VIA, Macdonald service or, god forbid, shut the doors. a decrease of 24.2 per cent on the to mid-range. As a trade, we’ve says the association needs “We’ve worked hard over 3,232 in January 2018. The marque been struggling to get those to continue restructuring its the past 30 years on behalf of starts the year with a market share people onto our yards and into model and 2018 was a tough year all who have an interest in our of 21.1 per cent. showrooms.” for external funding. He believes industry with our over-riding Nissan secured second spot Macdonald, who is also this year will be no different. mantra being to ensure we with 2,328 registrations last month chairman of the North Island “VIA is required to have a hard keep the doors for independent – a fall of 11.4 per cent on January branch of VIA (the Imported Motor look at its conventional funding importing open. 2018’s 2,629. This represented a Vehicle Industry Association), says model. The industry at large is “We must continue to deal 20.1 per cent market share. Mazda a drop in spending on big-ticket looking at its bottom-line after with issues on the ground as was third on 1,873 sales, which was items is first seen when consumers the struggles of 2018 and they occur and – perhaps more a decrease of 18.9 per cent for a have to tighten their belts. we’re well-aware everyone is importantly – identify potential market share of 16.1 per cent. “People think, ‘do I really want looking closely at their books. issues coming down the track so The battle for top model we can mitigate them.” was close with the Mazda Axela Tony Woods, director of Used Imported Passenger Registrations - 2016-2019 coming first – but only by 70 units. Greenwoods Cars and 4x4s in The Suzuki Swift was second and 15,500 Penrose, notes “there are dealers Mazda’s Demio was third. 15,000 opening up everywhere in There were 633 Axelas sold 14,500 Auckland, but six months or a year during January – down by 3.1 per 14,000 later those traders don’t seem to cent on the same month of last 13,500 be there anymore – they are like year. Swift registrations totalled 13,000 pop-up shops”. 563 for a decrease of nine per cent, 12,500 On the flipside, he adds: “There and 553 Tiida sales represented 12,000 are some fantastic people who 11,500 decrease of 3.8 per cent. The three have been in the industry for a long 11,000 models hold 5.5, 4.9 and 4.8 per 2016 time and have put a lot into it. 10,500 cent of this year’s market share 2017 “You have to be constantly 10,000 respectively. 2018 looking at new ways of creating 9,500 2019 “From my perspective, I think 9,000 business and testing advertising. I it’s going to be a tough year,” Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec enjoy the industry, but it certainly says Graeme Macdonald, who has its moments.”

reliable www.heiwa-auctions.com Servicing new Zealand for 20 years contact: Kei Mikuriya [email protected]

www.autofile.co.nz 35 www.mmnz.biz Industry ‘grappling’ with issues he used-imports industry “We would like to think the Macdonald stresses that – up the change in regulations for the is continuing to face problem is being dealt with outside until now – everyone has been type of fuel used in ships and uncertainty due to problems of Japan, but not all sailings are just doing their best and the trade is retrofitting vessels to accommodate Tassociated with keeping stink bugs from there,” says Macdonald. working, “scrambling if you like”, to this, so these additional costs will get out of New Zealand. “There’s some real hesitation find solutions on a daily basis for passed onto the trade as well. Graeme Macdonald says logistics pre-paying for vehicles. If they get problems as they occur. “The consumer market seems and shipping providers are doing directed back to Japan, South Korea “From a dealer’s perspective, reluctant to take up price rises to the best they can during the current or Singapore, who pays? there’s certainly no certainty. There’s account for these things. I don’t think high-risk biosecurity season. “Or what if that’s your stock probably more than there was in price is going down anytime soon.” “They are scrambling to try to pick you’ve got planned for the next the first half of 2018, but it’s still not As for last month, 13,479 used up slack when they can, but right couple of months and it’s not a given that we will see unrestricted, passenger vehicles were imported now it’s such a volatile situation,” says appearing somewhere? Or you’ve straightforward shipping schedules into New Zealand – up by 28.6 the owner of West Auckland-based pre-sold a vehicle to a particular being maintained. Issues are per cent and by 3,000 units when Westwyn Trading Company. customer and now you can’t supply definitely ongoing.” compared to January 2018. While stink bugs are being it because it’s being redirected? The increase in costs is another The number of units from Japan tackled by heat-treating used There are a lot of issues the factor with heat-treatment charges rose by 32.8 per cent to 12,856, while imports from Japan, New Zealand industry needs to grapple with. impacting on margins. there was a 35.9 per cent decrease to has other source markets. There are no easy solutions.” Macdonald adds: “Then there’s 279 from Australia.

Used imported passenger vehicle arrivals

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

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

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

Used Imported Passenger Vehicles By Country Of Export

2018 2017 Country of Export 2019 JAN ’19 Jan Market Share % 2019 Total Q1 Q2 Q3 Q4 2018 TOTAL MRkt Share 2017 TOTAL MRkt Share Australia 279 2.1% 279 1,170 1,054 950 1,009 4,183 2.9% 5,540 3.2% Great Britain 103 0.8% 103 280 229 235 282 1,026 0.7% 2,173 1.3% Japan 12,856 95.4% 12,856 26,715 48,862 28,646 30,287 134,510 94.2% 160,822 93.8% Singapore 142 1.1% 142 338 351 386 456 1,531 1.1% 1,202 0.7% Usa 61 0.5% 61 281 287 265 275 1,108 0.8% 1,419 0.8% Other countries 38 0.3% 38 153 80 73 109 415 0.3% 387 0.2% Total 13,479 100.0% 13,479 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 Increase in sales by dealers here was a promising 178 to 226. Private transactions “Four-door sedans are now cars. Our Superb went well last increase in trader-to- dropped by 0.3 per cent to 43,614. harder to sell – even Nissan’s Skyline, year. People have moved away public sales of second- Tony Woods, of Greenwoods which used to be popular,” he adds. from Commodores and Falcons. Thand cars in January. Some 17,702 Cars and 4x4s in Auckland, says: “I’m “We also sell a lot of older They have almost died in the New units were sold compared to hoping 2019 will be better than last vehicles – 40 or 50 years old – such Zealand market. 16,967 in the first month of last year, although some big players as American muscle cars. I’ve “We’ve seen corporates and year for a 4.3 per cent rise. aren’t saying that. brought a couple in from Australia, company-vehicle buyers moving Oamaru led the way with a 71.4 “If we do everything correctly, but most have already been to Skoda and we have the contract per cent rise from 28 to 48 units. we should get the right results but imported here and I travel the for Corporate Cabs, which has Wellington’s increase to 1,734 from it will take a lot of effort. As for the country to find them.” come out of Commodores and 1,478 sales came in at 17.3 per cent, industry, it will be going through Torben Freer, general manager of into Superbs. while Invercargill was next up with a changes to regulations over Giltrap Skoda in Auckland, is seeing “December was tough. October 13.6 per cent jump from 456 to 518. importing cars and emissions.” the likes of Hyundais, Subarus and was a great month, but we felt Public-to-trader sales rose by Woods says buyers still want Mazdas – especially in the SUV it slow down in November and 1.3 per cent to 12,530 units last used Falcons and Commodores. space – being traded in. December was much the same. month compared to 12,371 in However, unless they have an He told Autofile: “We trade The rest of this year will be hard, January 2018, with New Plymouth “x-factor about them”, they are a lot of Fords and , and but I’m confident we can play well securing a 27 per cent hike from harder to sell unless station wagons. buyers still want large passenger in a tough market.”

Secondhand car sales - January 2019

Dealer To Public Public To Public Public To Dealer Jan ’19 Jan ’18 +/- % MarKET SHARE Jan ’19 Jan ’18 +/- % Jan ’19 Jan ’18 +/- % Whangarei 555 563 -1.4 3.1 1,924 1,957 -1.7 226 216 4.6 Auckland 5,756 5,468 5.3 32.5 14,141 14,325 -1.3 4,865 4,737 2.7 Hamilton 1,412 1,261 12.0 8.0 3,363 3,355 0.2 995 957 4.0 Thames 265 291 -8.9 1.5 669 721 -7.2 189 184 2.7 Tauranga 819 780 5.0 4.6 2,172 2,065 5.2 531 547 -2.9 Rotorua 308 378 -18.5 1.7 983 965 1.9 103 142 -27.5 Gisborne 180 160 12.5 1.0 417 419 -0.5 64 71 -9.9 Napier 661 679 -2.7 3.7 1,593 1,596 -0.2 418 417 0.2 New Plymouth 409 380 7.6 2.3 1,025 1,060 -3.3 226 178 27.0 Wanganui 252 256 -1.6 1.4 672 647 3.9 161 166 -3.0 Palmerston North 803 814 -1.4 4.5 1,718 1,668 3.0 655 594 10.3 Masterton 247 239 3.3 1.4 508 544 -6.6 119 99 20.2 Wellington 1,734 1,478 17.3 9.8 3,255 3,318 -1.9 1,019 1,032 -1.3 Nelson 338 341 -0.9 1.9 1,088 1,120 -2.9 203 241 -15.8 Blenheim 180 187 -3.7 1.0 452 441 2.5 100 115 -13.0 Greymouth 69 74 -6.8 0.4 180 193 -6.7 42 45 -6.7 Westport 5 7 -28.6 0.0 37 24 54.2 0 0 0.0 Christchurch 2,223 2,145 3.6 12.6 5,298 5,460 -3.0 1,779 1,794 -0.8 Timaru 171 242 -29.3 1.0 544 525 3.6 117 125 -6.4 Oamaru 48 28 71.4 0.3 130 121 7.4 4 2 100.0 Dunedin 749 740 1.2 4.2 2,220 2,140 3.7 418 415 0.7 Invercargill 518 456 13.6 2.9 1,225 1,095 11.9 296 294 0.7 NZ Total VIR-autotalk-banner-resize.pdf17,702 16,967 1 8/7/184.3 11:18100.00 AM 43,614 43,759 -0.3 12,530 12,371 1.3

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

Jan ’19 2019 YEAR 2019 Jan ’19 2019 YEAR 2019 Mkt Make Jan ’19 Jan ’18 +/- % Make Model Jan ’19 Jan ’18 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE share Toyota 1,718 2,490 -31.0 17.3% 1,718 17.3% Toyota Corolla 669 958 -30.2 6.7% 669 6.7%

Mazda 1,052 1,025 2.6 10.6% 1,052 10.6% Mazda Cx-5 364 305 19.3 3.7% 364 3.7%

Mitsubishi 803 626 28.3 8.1% 803 8.1% Suzuki Swift 351 242 45.0 3.5% 351 3.5%

Kia 710 762 -6.8 7.1% 710 7.1% Mitsubishi Asx 347 150 131.3 3.5% 347 3.5%

Holden 689 777 -11.3 6.9% 689 6.9% Kia Sportage 339 315 7.6 3.4% 339 3.4%

Ford 606 846 -28.4 6.1% 606 6.1% Mitsubishi Outlander 304 197 54.3 3.1% 304 3.1%

Suzuki 592 591 0.2 6.0% 592 6.0% Mazda Mazda3 260 266 -2.3 2.6% 260 2.6%

Hyundai 551 553 -0.4 5.5% 551 5.5% Toyota Rav4 240 421 -43.0 2.4% 240 2.4%

Honda 450 524 -14.1 4.5% 450 4.5% Toyota Highlander 237 427 -44.5 2.4% 237 2.4%

Subaru 382 342 11.7 3.8% 382 3.8% 204 88 131.8 2.1% 204 2.1%

Volkswagen 374 300 24.7 3.8% 374 3.8% Ford Focus 198 320 -38.1 2.0% 198 2.0%

Nissan 370 423 -12.5 3.7% 370 3.7% Volkswagen Tiguan 191 122 56.6 1.9% 191 1.9%

Mercedes-Benz 247 188 31.4 2.5% 247 2.5% Hyundai Kona 187 189 -1.1 1.9% 187 1.9%

Land Rover 179 73 145.2 1.8% 179 1.8% Nissan Qashqai 167 217 -23.0 1.7% 167 1.7%

Bmw 130 187 -30.5 1.3% 130 1.3% Honda Jazz 165 192 -14.1 1.7% 165 1.7%

Skoda 113 140 -19.3 1.1% 113 1.1% Nissan X-Trail 146 156 -6.4 1.5% 146 1.5%

Audi 111 178 -37.6 1.1% 111 1.1% Subaru Xv 141 112 25.9 1.4% 141 1.4%

Jeep 110 82 34.1 1.1% 110 1.1% Toyota Camry 135 121 11.6 1.4% 135 1.4%

Peugeot 107 89 20.2 1.1% 107 1.1% Toyota Landcruiser Prado 132 133 -0.8 1.3% 132 1.3%

Lexus 76 62 22.6 0.8% 76 0.8% Holden Astra 127 88 44.3 1.3% 127 1.3%

SsangYong 72 82 -12.2 0.7% 72 0.7% Honda Hr-V 127 77 64.9 1.3% 127 1.3%

Volvo 68 57 19.3 0.7% 68 0.7% Toyota Yaris 125 157 -20.4 1.3% 125 1.3%

Mini 65 77 -15.6 0.7% 65 0.7% Hyundai Santa Fe 124 103 20.4 1.2% 124 1.2%

Porsche 60 54 11.1 0.6% 60 0.6% Kia Rio 123 130 -5.4 1.2% 123 1.2%

Haval 49 37 32.4 0.5% 49 0.5% Mazda Cx-3 103 131 -21.4 1.0% 103 1.0%

Jaguar 43 20 115.0 0.4% 43 0.4% Honda Crv 102 168 -39.3 1.0% 102 1.0%

Citroen 34 26 30.8 0.3% 34 0.3% Mazda Mazda2 98 131 -25.2 1.0% 98 1.0%

Renault 34 24 41.7 0.3% 34 0.3% Subaru Outback 98 117 -16.2 1.0% 98 1.0%

Isuzu 22 30 -26.7 0.2% 22 0.2% Ford Ecosport 97 78 24.4 1.0% 97 1.0%

Alfa Romeo 17 12 41.7 0.2% 17 0.2% Subaru Forester 94 39 141.0 0.9% 94 0.9%

Seat 13 9 44.4 0.1% 13 0.1% Toyota C-Hr 93 83 12.0 0.9% 93 0.9%

Tesla 13 23 -43.5 0.1% 13 0.1% Land Rover Range Rover Sport 90 19 373.7 0.9% 90 0.9%

Infiniti 12 0 1,200.0 0.1% 12 0.1% Holden Trax 89 141 -36.9 0.9% 89 0.9%

Bentley 11 7 57.1 0.1% 11 0.1% Hyundai Tucson 88 129 -31.8 0.9% 88 0.9%

Aston Martin 7 9 -22.2 0.1% 7 0.1% Hyundai i30 87 18 383.3 0.9% 87 0.9%

Others 52 73 -28.8 0.5% 52 0.5% Others 3,500 4,258 -17.8 35.2% 3,500 35.2%

Total 9,942 10,798 -7.9 100.0% 9,942 100.0% Total 9,942 10,798 -7.9 100.0% 9,942 100.0%

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships January 2019 ( vs December 2018) S S Web - Dealer 15.7% Web - Dealer 10.5% S Web - Dealer 13.0% T E E D S V

Web - Classified Direct L Web - Classified A 8.1% I 20.1% 8.7% E A R E

L Brand 29.7% T D Web - Classified 8.7% S Brand 6.5% Smart Digital Tools

38 www.autofile.co.nz Economic environment changes

he number of new cars sold growth last year. This included the sedan and new CLA Coupe. than the previous range-topper. in January dropped by 7.9 country’s first AMG Performance “In 2019, we’ll launch up to “By bringing the VRX in-line with per cent compared to the Centre at Mercedes-Benz Auckland seven new models and two facelifts. some petrol and diesel equivalents, sameT month of 2018 – from 10,798 followed by a second at Armstrong Although many are predicting a flat we’ve offered choice to Kiwis joining units to 9,942. Prestige in Christchurch. market, we’re confident they will help the EV revolution,” he says. “We January’s top-selling car was “From an after-sales perspective, us achieve moderate growth this year.” didn’t want price to be a barrier and Toyota’s Corolla on 669 units. It was we focussed on improving customer With more than 12,000 new have seen increased interest. followed by Mazda’s CX-5 with 364 experience by introducing an passenger and commercial “The Outlander was the first and Suzuki’s Swift on 351. ‘express service’ system into three registrations in 2018, Mitsubishi plug-in hybrid SUV in New Zealand The top-three marques were metropolitan dealers,” says Giffin. Motors NZ notched up its biggest and, since its launch in 2014, it has Toyota on 1,718 units, Mazda with “It allows customers to have cars calendar year since 1990. remained the most popular vehicle 1,052 and Mitsubishi on 803. serviced and groomed in as little as “These results reflect in its class. We’re confident the next “The economic environment 60 minutes.” momentum on the back of eight 1,000-unit milestone will arrive that existed this time last year and At the moment, the marque years of growth and an evolving quicker than the first.” before that has begun to change, is experiencing no stock issues, range,” says Reece Congdon, head Subaru of NZ achieved a record albeit slowly,” says David Crawford, “but naturally we’re being affected of marketing and corporate affairs. last year with 3,641 new cars of the Motor Industry Association. by the stink-bug issue like other “Our next goal is third place in sold – up by 8.8 per cent versus “However, levels of new-vehicle sales, manufacturers”. the market for the financial year. 3,347 in 2017 in a market that saw while softer than this time last year, New models help boost overall Our interim results suggest we’re registrations of all new passenger remain at historically high levels.” sales and Mercedes-Benz is heading in the right direction. vehicles fall by 0.4 per cent. Distributors, meanwhile, are launching some in 2019, including The arrival of the new-look Triton, It means 2018 was its seventh still eager to shout about last year’s its first wholly electric vehicle [EV] – backed by our full-range line-up, year of consecutive growth with successes while looking forward to the EQC SUV. will propel us towards this goal.” Wallis Dumper, managing director, the rest of 2019. “It marks the launch of an Congdon is delighted the describing this as a sustained Mercedes-Benz NZ finished all-new brand and will introduce Outlander PHEV retained its crown period of success. 2018 as the top luxury marque for New Zealand to the future of pure as most popular plug-in hybrid SUV By global standards, while its the fourth year in a row with 2,251 EVs,” enthuses Giffin. “We’ll have with sales topping 1,000 last year, final numbers for last year may seem new-vehicle registrations. an all-new GLE in the growing which saw the VRX variant retail for small given Subaru Corporation “It was another strong year,” Ben large SUV market, the first A-Class $55,990 plus on-roads – $8,000 less Japan’s scale, it places the marque Giffin, executive general manager, here as one of the top-performing told Autofile. “We saw strong New Passenger Registrations - 2016-2019 distributors worldwide. Dumper says growth with our SUVs gain traction 12,000 it sells more units than Subaru in the in the still-growing luxury SUV UK despite the population variation segment. For the first time, this led between the two. 11,000 to the GLC overtaking the C-Class Its large SUV, the Outback, was as our best-selling car. its number one with 36.5 per cent of 10,000 “From a product perspective, we its Kiwi sales. The second-generation launched a new C-Class with new compact SUV, the XV, performed well engines, plus the G 63 AMG arrived 9,000 with its first full year of registrations in mid-2018 and sold out its initial up by 78.5 per cent and Forester allocation before the end of the year. 8,000 sales jumped by 18.4 per cent.

The A-Class followed and claimed a 2016 “Last year made me proud on number of awards, including the AA 7,000 2017 many levels,” says Dumper. “In Driven NZ Car of the Year.” 2018 2019, we hope to help more Kiwis 2019 The marque’s dealer network 6,000 discover why it’s as if Subarus were underwent development and Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec made for New Zealand.”

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships January 2019 ( vs December 2018) S S Web - Dealer 15.7% Web - Dealer 10.5% S Web - Dealer 13.0% T E E D S V

Web - Classified Direct L Web - Classified A 8.1% I 20.1% 8.7% E A R E

L Brand 29.7% T D Web - Classified 8.7% S Brand 6.5% Smart Digital Tools

www.autofile.co.nz 39 Slight sales drop recorded egistrations of new of what we do, and I can’t see that New Commercial Sales - 2016-2019 commercial vehicles started 6,000 changing in 2019. 2016 the year with a one per cent “We will be able to get the stock 5,500 2017 dropR compared to January 2018. 2018 we need to meet that demand. There were 3,996 units sold last 5,000 2019 We’ve had waiting lists for the month, down by 41 sales from 4,037 Ranger Raptor, but those vehicles 4,500 during the first month of last year. were due last month. January’s top commercial 4,000 “January is usually quieter than vehicle was Ford’s Ranger with 3,500 most other months, but meeting a market share of 20.9 per cent our December targets took the thanks to 837 units. The Mitsubishi 3,000 pressure off a little bit with some Triton was second with 445 units, 2,500 sales rolling over into January.” while Toyota’s Hilux found itself in Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Abernethy is pleased with Raptor unfamiliar territory in third with 434. sales since its release in September. Ford was the top marque with the business has ever had for “We didn’t see a rush to small cars “We’ve had plenty of people 888 units, Toyota was second on 594 registrations of new vehicles. when the price of petrol went up interested in the Raptor. We were and Mitsubishi was third with 445. “Smaller cars are a small and many manufacturers are moving able to get the stock we wanted Nathan Abernethy, dealer percentage of sales in rural areas – away from them towards SUVs. and I think it will be consistent. It’s principal of Regional Ford in Gore, people want SUVs and utes down “Commercial vehicles and another string to our bow and adds describes 2018 as the best year here,” he told Autofile. SUVs make up about 85 per cent to the line-up.”

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

Jan ’19 2019 YEAR 2019 Jan ’19 2019 YEAR 2019 Mkt Make Jan ’19 Jan ’18 +/- % Make Model Jan ’19 Jan ’18 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE share Ford 888 808 9.9 22.2% 888 22.2% Ford Ranger 837 713 17.4 20.9% 837 20.9% Toyota 594 780 -23.8 14.9% 594 14.9% Mitsubishi Triton 445 318 39.9 11.1% 445 11.1% Mitsubishi 445 318 39.9 11.1% 445 11.1% Toyota Hilux 434 636 -31.8 10.9% 434 10.9% Holden 353 385 -8.3 8.8% 353 8.8% Nissan Navara 338 284 19.0 8.5% 338 8.5% Nissan 338 284 19.0 8.5% 338 8.5% Holden Colorado 335 376 -10.9 8.4% 335 8.4% Isuzu 283 258 9.7 7.1% 283 7.1% Isuzu D-Max 179 192 -6.8 4.5% 179 4.5% Mazda 163 172 -5.2 4.1% 163 4.1% Mazda Bt-50 163 172 -5.2 4.1% 163 4.1% Ldv 120 153 -21.6 3.0% 120 3.0% Toyota Hiace 128 127 0.8 3.2% 128 3.2% Volkswagen 99 165 -40.0 2.5% 99 2.5% Hyundai iLoad 74 63 17.5 1.9% 74 1.9% Mercedes-Benz 84 57 47.4 2.1% 84 2.1% Volkswagen Amarok 62 111 -44.1 1.6% 62 1.6% Hyundai 76 64 18.8 1.9% 76 1.9% Isuzu F Series 62 26 138.5 1.6% 62 1.6% Fuso 73 66 10.6 1.8% 73 1.8% Ldv V80 53 49 8.2 1.3% 53 1.3% Hino 53 46 15.2 1.3% 53 1.3% Fiat Ducato 51 101 -49.5 1.3% 51 1.3% Volvo 52 21 147.6 1.3% 52 1.3% Ford Transit 51 95 -46.3 1.3% 51 1.3% Fiat 51 101 -49.5 1.3% 51 1.3% Mercedes-Benz X-Class 51 0 5100.0 1.3% 51 1.3% Great Wall 33 16 106.3 0.8% 33 0.8% Ldv T60 46 65 -29.2 1.2% 46 1.2% Ssangyong 33 94 -64.9 0.8% 33 0.8% Hino 500 37 22 68.2 0.9% 37 0.9% Foton 32 66 -51.5 0.8% 32 0.8% Volvo Fm 37 9 311.1 0.9% 37 0.9% Daf 28 21 33.3 0.7% 28 0.7% Great Wall Steed 33 16 106.3 0.8% 33 0.8% Alexander Dennis 24 7 242.9 0.6% 24 0.6% Toyota Landcruiser 32 17 88.2 0.8% 32 0.8% Others 174 155 12.3 4.4% 174 4.4% Others 548 645 -15.0 13.7% 548 13.7% Total 3,996 4,037 -1.0 100.0% 3,996 100.0% Total 3,996 4,037 -1.0 100.0% 3,996 100.0%

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

SPEED, SERVICE, VALUE & INDEPENDENCE

40 www.autofile.co.nz Demand ‘holding up’ ute prices dealer says more buyers are a statutory write-off, then we’re hard Used Commercial Sales - 2016-2019 turning to double-cab utes 1,300 on the price because we have to be.” as family vehicles because Woods describes the first few 1,200 Athey drive so well. weeks of January as being “extremely “The Toyota Hilux was what 1,100 average, but it was slow at the end of people used to want, and then the last year”. 1,000 new-model Ranger arrived in 2011 As for New Zealand, 937 used or 2012,” says Tony Woods, director 900 commercials were sold last month. of Greenwoods Cars and 4x4s in This was down 8.5 per cent on 1,024 800 Penrose, Auckland. 2016 units in January 2018 with Toyota 2017 “They are fantastic and everyone 700 2018 being the top marque with 399 sales. wants one. Because double-cab utes 2019 “Business picked up and 600 are so popular, demand is holding Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec December was good to us,” Woods up the prices of second-hand utes. adds. “February and January are A lot are diesel, which is better for are all sold new here. Although some Autofile. “People buy them because traditionally difficult because of the fuel economy, but the government can be imported from Australia, they think they’re getting a deal. holiday period. Last year was better is pushing people to buy hybrid and buyers have got wise about statutory “But when they come to dispose than 2017 for us. We shifted premises electric vehicles.” write-offs from across the Tasman. of them, maybe they realise the and made a few business changes. Woods notes used utilities cannot “They are cheap, but there’s a deal wasn’t that good because they You can’t rest on your laurels and be imported from Japan and most reason why they’re cheap,” he told struggle to on-sell. If we are trading expect things to happen.”

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

Jan ’19 2019 YEAR 2019 Jan ’19 2019 YEAR 2019 Mkt Make Jan ’19 Jan ’18 +/- % Make Model Jan ’19 Jan ’18 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE share Toyota 399 441 -9.5 42.6% 399 42.6% Toyota Hiace 296 342 -13.5 31.6% 296 31.6% Nissan 206 210 -1.9 22.0% 206 22.0% Nissan Caravan 66 65 1.5 7.0% 66 7.0% Ford 58 45 28.9 6.2% 58 6.2% Toyota Dyna 38 32 18.8 4.1% 38 4.1% Mazda 40 78 -48.7 4.3% 40 4.3% Nissan Nv200 36 46 -21.7 3.8% 36 3.8% Isuzu 39 57 -31.6 4.2% 39 4.2% Nissan Nv350 32 26 23.1 3.4% 32 3.4% Hino 35 26 34.6 3.7% 35 3.7% Fiat Ducato 30 31 -3.2 3.2% 30 3.2% Mitsubishi 35 36 -2.8 3.7% 35 3.7% Isuzu Elf 30 33 -9.1 3.2% 30 3.2% Fiat 30 35 -14.3 3.2% 30 3.2% Ford Transit 30 8 275.0 3.2% 30 3.2% Chevrolet 19 13 46.2 2.0% 19 2.0% Mazda Bongo 29 65 -55.4 3.1% 29 3.1% Holden 19 22 -13.6 2.0% 19 2.0% Nissan Vanette 29 18 61.1 3.1% 29 3.1% Suzuki 8 5 60.0 0.9% 8 0.9% Nissan Atlas 27 27 0.0 2.9% 27 2.9% Mitsubishi Fuso 7 2 250.0 0.7% 7 0.7% Toyota Regius 26 32 -18.8 2.8% 26 2.8% Daihatsu 6 2 200.0 0.6% 6 0.6% Hino Dutro 24 8 200.0 2.6% 24 2.6% Volkswagen 6 3 100.0 0.6% 6 0.6% Toyota Toyoace 22 8 175.0 2.3% 22 2.3% Citroen 4 0 400.0 0.4% 4 0.4% Mitsubishi Canter 20 14 42.9 2.1% 20 2.1% Daf 3 3 0.0 0.3% 3 0.3% Toyota Hilux 12 21 -42.9 1.3% 12 1.3% Kenworth 3 2 50.0 0.3% 3 0.3% Ford Ranger 11 20 -45.0 1.2% 11 1.2% Volvo 3 2 50.0 0.3% 3 0.3% Mitsubishi Triton 10 9 11.1 1.1% 10 1.1% Great Wall 2 1 100.0 0.2% 2 0.2% Holden Commodore 9 9 0.0 1.0% 9 1.0% Hyundai 2 3 -33.3 0.2% 2 0.2% Suzuki Carry 8 5 60.0 0.9% 8 0.9% Others 13 38 -65.8 1.4% 13 1.4% Others 152 205 -25.9 16.2% 152 16.2% Total 937 1,024 -8.5 100.0% 937 100.0% Total 937 1,024 -8.5 100.0% 937 100.0%

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

www.autofile.co.nz 41 Market starts to ‘tighten up’ here were 7,462 new Giltrap Skoda in Auckland, describes “The market has started to Nathan Abernethy, dealer passenger vehicles last year as good for the business. tighten up a lot. Some forecasts for principal of Regional Ford, which has imported during January. “We were up by 20 per this year in terms of the total market yards in Gore and Balclutha, says: “I ThisT was down by 7.7 per cent on cent year on year in terms of and performance we’ve been think it will be an exciting year. The the same month of last year when volume for new Skodas,” he says. getting from our people is that it economy is still looking good and we 8,086 units crossed the border. “We’ve had some changes at will be flat or go back a little bit. have high hopes for 2019. Registrations of new cars held the dealership, but things are “We’re going to have to rely on “We have the new Endura, steady on 9,942 units, which was heading in the right direction. customer interest in Skoda and the Focus and Fiesta coming this year, a decrease of 7.9 per cent on the “Skoda as a brand was up by 22 product we’ve got coming in 2019. and the 2019 Ranger and Everest same month of last year when the per cent year on year helped by the “We’ve got the Kodiaq RS have just arrived, so there’s a lot to total was 10,798. Kodiaq. With the likes of the smaller landing in New Zealand at the end be excited about. When taking into account last Karoq SUV, people have a good of the first quarter. It’s the sporty, “We do have longer wait times month’s new car imports minus understanding of the marque now.” powerful top-end car for us in that due to the volume of new cars registrations, there was a variance Freer describes the marque segment. We have had a lot of being sold in New Zealand. It of 2,480 units for a decrease of as “affordable European quality” interest in it already. used to take about 10 days to get stock on-hand to 79,589. There are and now it’s aligned with the “Towards the back end of a vehicle from Auckland to Gore. now 271 days’ stock on-hand or 8.9 Volkswagen Group, people are 2019, we’ve got the Scala. It’s a Now it takes two to three weeks months’ worth if sales continue at interested with what they can get. replacement for the Rapid, which because transport companies just the same rate. “I’ve always had high was one of 2018’s success stories. It can’t keep up – they don’t have the January’s daily average sales expectations for the brand, but has done far better than expected trucks on the ground. dropped slightly to 294 – five the market has been tough. It was particularly with the strength of “Some people are impatient days lower than the same month up and down all last year. There SUVs. Being a hatchback, it goes and will take what’s available, but of last year. were big months, then months so well for us, so we’re looking others will wait to get the colours Torben Freer, general manager of when it was hard. forward to the Scala.” they want.”

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 January 2018 — January 2019 Jan ‘18 8,086 10,798 -2,712 69,620 299 299 260 Feb‘18 7,281 7,415 -134 69,486 298 233 Mar ‘18 9,954 9,050 904 70,390 297 237 240 Apr ‘18 10,268 6,848 3,420 73,810 297 249 May ‘18 12,102 9,275 2,827 76,637 299 256 220 January 2017 — January 2018 Jun ‘18 10,138 9,725 413 77,050 298 259 Jul ‘18 11,503 8,040 3,463 80,513 299 269 200 Aug ‘18 11,175 8,639 2,536 83,049 299 278 180 Sep ‘18 10,382 9,431 951 84,000 298 282 Oct ‘18 9,921 11,765 -1,844 82,156 300 274 160 Nov ‘18 7,820 9,543 -1,723 80,433 298 270 of stock Days

Dec ‘18 9,317 7,681 1,636 82,069 296 277 140 Jan ‘19 7,462 9,942 -2,480 79,589 294 271

Year to date 7,462 9,942 (2,480) 120 Change on last month -19.9% 29.4% -3.0% 0 v g

Change on Jan 2018 -7.7% -7.9% 14.3% ay Oct S ep J u L F eb N o APR D e c J an J un A u Jan M M ar LESS IMPORTED LESS SOLD MORE STOCK

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42 www.autofile.co.nz Massive surge in electric demand n electric vehicle (EV) trying to ensure we have all the to single-parent families – buying job. If the car is easy to sell, it’s specialist says two main different electric offerings.” EVs for fuel savings. hard to buy.” issues affect his market – Boot says 2019’s new Leaf ‘However, most customers still January saw a drop in Aaccess to stock and pricing levels. will be good for the industry buy them with environmental registrations of second-hand cars, Dave Boot, owner of EV City with Nissan taking one on factors as the main motivation.” but imports of used passenger in Christchurch, says stocking a nationwide tour of its Boot says the stink-bug vehicles jumped as stock on-hand his yard can be continuous, dealerships so people can learn season makes cars cost more due remained relatively level to the and there are other issues such all about it. to heat treatment impacting on same month of last year. as price and a “huge surge” in “We can’t survive without new importers’ margins. There were 13,479 used cars demand in New Zealand and stock being sold, so it’s going to He adds: “But what has a imported last month, up by 28.6 other countries for electric cars. be good to see Nissan stepping more significant impact than per cent on January 2018, and “Over the past 12 months, into it. I hope it does a fantastic price is demand. There were 11,598 were registered for the we’ve seen used EV prices going job of educating its staff because delays in two boats when Japan first time for a drop of 15.5 per from strength to strength,” he it’s a different concept and was gearing up for stink-bug cent – a variance of 1,881 units. told Autofile. “Electric cars are environment.” treatment. There were a couple That left 31,619 units on getting dearer as more people Boot says the customer base of weeks when our stock just dealers’ yards unregistered – want to buy them. It’s simple for going electric is now more sat on wharves over there going down by 0.8 per cent on January supply and demand. across the board. nowhere. 2018’s 31,363 units. “We’ve been bringing in “Earlier we were storing cars for “We had about 100 cars Average daily sales of 399 are the some from England – a few Leafs people waiting for term deposits arrive on one November day and lowest for many months and down and the new 40kWh van. We’ve to mature and at one point had more than half were pre-sold, by 57 units a day when compared had one going out as a postie’s 10 units in storage. But we’re now so keeping customers informed to January last year. There’s enough vehicle. We’re getting into some getting a different cross-section about what’s going on and what stock at-hand to last 79 days at the Hyundai and BMW stock, and of society – from young people delays mean is a big part of our current sales 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 Jan ‘18 10,479 13,719 -3,240 31,362 456 69 Feb‘18 7,686 12,048 -4,362 27,000 455 59 140 Mar ‘18 10,772 11,841 -1,069 25,931 448 58 Apr ‘18 19,438 10,893 8,545 34,476 444 78 120 May ‘18 15,464 13,420 2,044 36,520 441 83 Jun ‘18 15,961 12,651 3,310 39,830 439 91 100 January 2018 — January 2019 Jul ‘18 11,028 13,847 -2,819 37,011 438 85 Aug ‘18 10,282 13,368 -3,086 33,925 434 78 80 Sep ‘18 9,245 11,533 -2,288 31,637 429 74 Oct ‘18 8,669 12,100 -3,431 28,206 423 67 60 Days of stock Days January 2017 — January 2018 Nov ‘18 11,301 11,156 145 28,351 413 69

40 Dec ‘18 12,448 11,061 1,387 29,738 404 74 Jan ‘19 13,479 11,598 1,881 31,619 399 79

20 Year to date 13,479 11,598 1,881 Change on last month 8.3% 4.9% 6.3% v g

ay Change on Jan 2018 28.6% -15.5% 0.8% Oct S ep J u L F eb N o APR D e c J an J un A u Jan M M ar MORE IMPORTED LESS SOLD MORE STOCK

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