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Mills at Miles P10 THE VEHICLE DEALER’S NEWS SOURCE APRIL 2020 .CO.NZ Mills at Miles p10 The market leader for over a decade. Cashflow trouble Shift to the Autohub Team and experience the Autohub difference. for trade p3 GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE | www.autohub.co Toyota's Mechanical Breakdown Insurance COVID-19 focus Payment Protection Insurance p4 Loan Equity Insurance Motor Vehicle Insurance Farewell Wally www.autosure.co.nz | 0800 267 873 Sutherland p6 COVID-19 LOCKDOWN – THE INDUSTRY REACTS EDITORTALK BEST OF THE AUTOMOTIVE INDUSTRY IS COMING OUT IN LOCKDOWN would love to sit here and predict what digging deep into their own pockets is going to happen to the automotive to keep their staff employed. industry over the four weeks - or more Suppliers have come to the party. I by Richard Edwards - of Level 4 lockdown. But smarter people Trade Me, AutoPlay, Smart Loyalty, than I are still working on the outcome, UDC, Heartland, Nichibo and many Managing Editor and I suspect are none the wiser. more have offered their dealer clients What is clear is that the industry is likely a range of offers including payment to come out incredibly changed. It will holidays, reduced rates and more. This be smaller, and sales will take a long is companies digging into their pockets time to recover. Firstly, the economy will at a time when they are already dealing need to recover in general. with drastically cut revenues, and their So first, let’s focus on staying home and own teams to look after. healthy. The associations have come to the fore, Instead of making detailed predictions, taking part and even leading a range of let’s celebrate that the industry and its government/industry working groups to supply chain are coming together to help solve supply chain issues and clarify the not only the essential services, but the working rules of the lockdown. community and each other. Considering VIA's future was up in the Dealers around the country are working air until very recently, it is proving itself to find ways to repair and supply essential rather valuable at the moment. service vehicles, financiers are still writing Here at Auto Media Group Limited, we business on them, and companies like jumped to the challenge the lockdown Toyota are offering vehicles from their presented - and have been punching out own fleet direct to the government and news from our home offices. We have others to assist. dialled up the amount of video we have Internationally, car companies and race been producing to give a “face-to-face" feel teams are building ventilators, face to the news. Our websites have continued sheilds and other essential items. to become the “go-to” source for the industry, with visits up across the board. Instead of making detailed Our columnists have put a lot of intelligent and heartfelt thought into predictions, let’s celebrate their pieces this month - and I highly that the industry and its recommend you having a solid read of supply chain are coming their wise words. We could not do any of this without the together to help not only assistance of our advertisers. The majority the essential services, have continued their support, and we can't thank them enough for this - quality but the community and industry news is now more important than each other. ever and you recognise that. Please, stay safe out there. Enjoy the While there have had to be time you have in your bubble with your redundancies within the industry locally, family, and wash your hands. we are also hearing of business owners 2 | AUTOTALK APRIL 2020 | www.autotalk.co.nz NEWSTALK CASHFLOW KING FOR BOTH NEW AND USED SIDES OF THE TRADE he need to pay Goods and Services around $300 per month, per vehicle. Tax on vehicles arriving into the Cottle suggested dealers like his own had Tcountry – which can’t be complied space and would prefer to store their own or sold – is becoming one of the biggest vehicles. That is just not possible, Vinsen issues facing the automotive trade. notes. AutoTalk has been approached by “Because of the level 4 lockdown, cars dealers concerned about the potential are not seen as essential goods – they for the huge bill at a time when cash is can’t be delivered.” in short supply. Vinsen says the association has “never Dunedin’s Neil Cottle is one such dealer been busier” and is currently represented concerned about the issue, likely to be on three different government-industry triggered when the next round of ships working groups solving issues as they carrying stock from Japan begin arriving come. He notes the situation though is next week. only “temporal”. “It’s quite a disaster for some people, you “It is a temporal situation, it is only a have got to pay the GST, and you can’t time thing.” get access to your vehicles, it is just a Once the doors open the industry will headache.” be looking to dealers to clear the “clog” “If there was some way that they could of vehicle in the supply chain so it can delay the payment?” continue to move again – even if it is at The issue was one of a number that came a different pace. up at a VIA council meeting yesterday, “We are faced with that and we with chief executive David Vinsen understand that, and the first link in the indicating GST is high on the association’s chain is what we previously thought priority list. was the last link, and that is the sale of “We are aware of the storage issues, we the vehicles.” are aware of cash flow, we are aware of Neil Cottle GST – and we are working on it flat out,” Distributors looking to cut costs he explains. “We have been looking up Cashflow is becoming a key issue for the supply chain and looking for the new vehicle distributors according to the problems coming at us.” Motor Industry Association. An earlier hoped solution – the ability Chief executive David Crawford says for Customs to increase the amount of while the GST issues facing the import bonded storage available, which would industry have yet to become a major allow vehicles to be stored without discussion on his side of the trade, essentially crossing the border, is unlikely cashflow is. to happen. “I know every single distributor “It looks as though customs will not be is scrambling to cover the loss of David Vinsen able to increase the amount of bonded cashflow,” Crawford days. “That is storage,” he says. going to require them to have a lot of The industry, he notes, has looked at a contingencies sorted.” number of dramatic solutions to slow He notes staffing has already begun to the arrival of vehicles, but they have not be cut. proved viable. “I am aware there has been downsizing in The next option is working with terms of the number of staff,” he explains. Customs and the IRD to align their “cost The issue for industry players big or small of use of money” charge, the amount will be how long the restrictions last. charged to defer paying the GST. “The longer it takes for us to reopen for business, the more severe the economic Storage costs are another issue coming David Crawford down the barrel at traders, starting from hit will be.” AUTOTALK APRIL 2020 | www.autotalk.co.nz | 3 NEWSTALK TOYOTA FOCUSING ON STAFF AND ESSENTIAL SERVICES oyota New Zealand has confirmed it is keeping on-call resources alive Tto assist essential services during the Covid-19 lockdown while protecting its staff and store network. AutoTalk spoke with chief operating officerNeeraj Lala as he locked up and departed an eerily-quiet National Customer Service Centre, the brand’s local head-office in the suburbs of Palmerston North, on the eve of the Level-4 shutdown. “I think this is the safest place for me to work right now,” Lala notes as he leaves the office for the last time. “There is no one here; it is deserted.” He notes the company had moved early to shift staff to work from home, and still have their customers’ service lines operating. Protecting their people is high on the to- Lala says they have had infrastructure terminal for many months, cancellations do list for Toyota management. companies indicate there could be for their purchases were coming thick “Our number one priority, like it was demand for vehicles during the lockdown, and fast. through the Global Financial Crisis, and this would be possible. He has also “We have had a massive number is to protect our staff and stores,” he floated the idea that it may be easier for of cancelled orders,” Lala explains. explains. “You hunker down and do Toyota to access its used car stock, make “Everything that was planned for this year what you have to.” a vehicle available, and make proper is gone.” They also started early on what they repair arrangements when business “It has been difficult with these could execute in terms of support for returns to normal. customers to work through the issues; essential services. Toyota centrally-distributes all new I’ve had to accept their cancelled Toyota contacted the Ministry of vehicles, and despite efforts, last-minute orders, which has meant I haven’t Transport, and a fleet of Highlander deliveries were restricted. been able to take back all of their early SUVs was made available for use should “There was a hesitancy from some terminated vehicles,” he says.
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