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Deecember 2017 Electric cars to play Specialised training that’s role in green targets proven to increase profits Commission suggests basing registration fees on vehicles’ emissions and fuel-price pressure to tackle climate change

government think-tank Zealand’s emissions stem from in transport emissions will likely believes electric vehicles transport with road vehicles being come from two main areas. Industry backing (EVs) offer the best way of responsible for more than 90 per One is switching from liquid Aslashing harmful emissions created cent of them. fossil fuels to renewable energy for initiative p 14 by New Zealand’s transport sector The country’s level of vehicle sources, particularly by using and is coming up with ideas about ownership is among the highest EVs, and reducing vehicle use. how to achieve this. in the world and its light fleet is The other is improving transport World record for The Productivity systems through, for economy Commission has been The government wants example, intelligent to develop charging charged with finding out infrastructure for transportation systems how the country can move electric cars (ITS) and greater use of towards a low-emissions public transport. p 21 economy and has The issues report produced an issues paper states EVs “offer by far the on the way forward. greatest opportunity to p 22 The document has reduce transport emissions four key parts – how in New Zealand”. greenhouse gas (GHG) EVs do not directly emissions can be cut, produce any GHG Spotlight on opportunities and barriers emissions while on the John Moyes to reduce emissions, policy road, while indirect and institutional arrangements, one of the oldest in developed emissions depend on the p 29 and ensuring such a transition countries – and the commission electricity used to charge their continues to grow incomes and says older vehicles tend to emit batteries. New Zealand is well- well-being. more emissions than newer ones. placed in this area because of its The automotive industry is Murray Sherwin, chairman abundant sources of renewable coming under scrutiny because of the Productivity Commission, energy. about 19 per cent of New believes the largest reductions Possible opportunities to Forty-year rally career

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Directors Editor Brian McCutcheon Darren Risby finance industry [email protected] [email protected] ph. 021 455 775 Journalists Lyn McMorran looks back at the Financial Darren Wiltshire Sue Brebner-Fox [email protected] [email protected] Services Federation’s debut conference ph. 021 0284 7428 Lucy Pink tackling regulatory impact [email protected] Designer t was a pleasure for and dealers have limited Adrian Payne Motorsport the Financial Services capacity to discount rates. [email protected] Mark Baker [email protected] Federation (FSF) to put She also touched Ion its first-ever conference. on plans to introduce a Autofile magazine is also available online as a readable file or downloadable as a PDF. After more than 50 years’ deferred sales model for Subscriptions are available at Autofile Online – www.autofile.co.nz. Back copies are also available on the website. existence, it feels we have add-on insurances – to Copyright: Published monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. matured as an organisation which banks in Australia to have grown in member have already committed All statements made, although based on information believed to be accurate and Lyn McMorran reliable, cannot be guaranteed, and no liability can be accepted for any errors or numbers and resources to to as a reaction to some omissions. Reproduction of Autofile in print or digital format in whole or part without Executive director written permission, whether by copying or any other means, is strictly forbidden. be able to present such a of the FSF mis-selling and practices All rights reserved. fully-fledged event. of concern. ISSN 0112-3475 (print) ISSN 2350-3181 (online) It’s a measure of how far we’ve The FSF believes there’s more come – from an organisation of sense in ensuring these products are about six members to one where we sold responsibly, which we outlined now have nearly 60, many of whom in our consumer resource this are in vehicle financing or leasing. year, the responsible credit-related It was particularly pleasing insurance code. to have such a great response to The Department of Internal the programme with nearly 100 Affairs’ Kate Reid gave an update on delegates in attendance. phase two of anti-money laundering an independent choice Delivering the perfect The conference’s theme – and countering the financing of financial services future-proofing terrorism legislation. – was timely with the massive She said that under the second- Quest Insurance offers: regulatory overhaul and compliance stage changes there will be a need burden following the global financial to report suspicious activity – not Mechanical Breakdown Insurance – backed by AA Roadside Assist Christmas gift... crisis now well-behind our members. just suspicious transactions – and The event was a look into the explained how this needs to be Comprehensive Motor Vehicle Insurance future of finance – how credit is reflected in financial reporting – including learner and restricted license cover. provided and how consumers entities’ risk assessments and Weekly, fortnightly & monthly instalment options now might use it. processes. She also covered what will available to match your customers pay cycle Mitchell Pham, of FinTechNZ, be required of dealers in high-value revealed how innovations such as goods, including motor vehicles. Guaranteed Asset Protection car-sharing and driverless vehicles Feedback from our conference- Lifestyle Protection Insurance may impact on the sector, as well as goers on November 9 has been ever-increasing demand for access to universally positive with all finance simply, quickly and via online presenters receiving glowing or mobile platforms. endorsements. Vehicle Shipping General Freight Vehicle Tracking Shipping Schedule Helen Gordon, of the Australian We’re almost ready to do it again, Finance Industry Association – their only bigger and better. Next year will equivalent of the FSF – gave us a raw see us host a two-day event with a If you are a forward thinking motor vehicle trader, or financier, looking for a trusted vehicle insurance partner, call Quest. look into changes across the Tasman. gala dinner and awards evening in This included recent and proposed October. We hope making it a staple Contact: Simon Moore Load it » Ship it » Track it » Clear it » Deliver it legislative changes, such as a ban on in the finance sector’s calendar will ph. 021 149 2266 flex commissions so lenders, rather add towards its future-proofing. e: [email protected] www.jacanna.co.nz Tel. +64 9 838 4944 than car dealers, now set interest rates See story on page 10 www.autofile.co.nz 3 news

[continued from page 1] expand the popularity of electric David Crawford, chief executive cars include encouraging the officer, says EVs will be important growth of publicly available as a key way to reduce transport charging infrastructure and greater emissions going forward because price pressure on fuels via the they can leverage off New emissions trading scheme (ETS). Zealand’s renewable energy. Other suggestions include “More generally, it’s important basing registration fees on a the commission doesn’t pick vehicle’s emissions potential, technology or product winners, minimum emissions standards, and focusses on the development improving awareness and of a framework that will allow education around EVs, government the market to establish what the subsidies and electrification of the best low-emission options are,” government’s fleet. he adds. On the flipside, at the moment Murray Sherwin, chairman of the “Policy interventions that EVs are more expensive to buy Productivity Commission demonstrably favour one than their equivalent internal competitor over another, or fuel- combustion vehicles (ICVs), public to improve public awareness information and promotion type over another, either directly or perceptions include range anxiety and perception around EVs, and campaign, and exempting light indirectly, are unlikely to be durable and there’s a limited range of facilitate the development of the and heavy electric vehicles from and risk damaging competition and models available in New Zealand, charging infrastructure. road-user charges (RUC) until they worsening outcomes. says the commission. Its 2017 EV Programme set a make up two per cent of their “While EVs are going to be It adds there’s a lack of target of 64,000 on-road vehicles respective fleets. important, we note Toyota, BMW, charging infrastructure and by 2021. Policies to support this The Motor Industry Association Daimler, Honda and Hyundai are varying recharging standards, include a contestable fund of up (MIA) is one of the organisations part of a consortium committed while no policy measures to to $6 million per year to support to have lodged a submission on to spending 10 billion euros [or properly price or regulate the low-emission projects. the Productivity Commission’s about NZ$17.4b] on hydrogen- adverse effects of ICVs are in place. Others are investing $1m issues paper on transitioning to a related projects.” The government is also aiming annually in a nationwide EV low-emissions economy. Methanex is looking to 

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t produce methanol for a low- and diesel could complement EVs of new vehicles each year is left-hand drive. Model options emissions fuel, adds Crawford. in reducing vehicle emissions. around 0.13 per cent of total for EVs, PHEVs, hybrids and so on, Given that most of the world’s The Ministry of Business, world annual production, while which are right-hand drive, are electricity is not low-emission Innovation and Employment marques make no vehicles for the fewer. However, the rate of model generated – apart from nuclear – notes a typical blend of biofuel Kiwi market. availability for lower-emission Mazda is pursuing low-emission leads to a five to 6.5 per cent “Whether or not New Zealand vehicles is picking up pace.” internal combustion engines reduction in GHG emissions per is, for example, EV-ready is The MIA believes transport with its diesel-petrol combined litre compared to regular fuels. irrelevant to manufacturers – policy settings should: fuel technology, which generates While traditional our scale is  Focus on outcomes because emissions at a similar, if not lower, sources of biofuel miniscule,” says it’s important to avoid the level than plug-in hybrids. have limited Crawford. temptation to pick winners as “We simply do not know what supply, there “We simply do “We this leads to market distortions technologies will come to the seems to be not know what sometimes joke and wasted resources. fore, hence economic settings potential for new our 0.13 per cent  Focus on managing demand should encourage innovation technologies technologies will of new vehicles not supply – marques supply around low emissions as opposed to produce it is the error of what Kiwis want to buy, while to focusing on one technology from wood and come to the fore” margin on the supply-side management over the other.” agricultural – David Crawford, MIA error of margin leads to “perverse outcomes”. New technology investment waste, for manufactures There are options, the MIA has and diffusion policies become example. refer to when carrying out statistical told the commission, that can important as well as their Hydrogen fuel-cells are another analysis for production planning. be used to influence purchasing associated policies. low-emissions technology that “Given our miniscule size, the decisions to help create a lower- Crawford says: “As a could become important in opportunity to transition to a low- emissions economy. technology-taker, with the right transport, notes the commission. emissions road transport sector rests “We suggest consideration is policies New Zealand can benefit Compared to EVs, hydrogen- on the ability of vehicle distributors given to removing excise duty off from the rapidly falling costs of powered cars are quicker to refuel to pick the best technologies for our petrol and moving all road vehicles new technology especially in and have a longer range. market settings. to electronic RUCs,” says Crawford. the energy sector, and minimise While it is technically possible “This is limited by model range. “This permits the government  any efficiency losses that might to use biomass or renewable The bulk of the world’s market is to set differential RUC rates to be associated with the early electricity to produce hydrogen, [continued on page 6] adoption of higher-cost, higher- currently manufacturers generally emissions technology.” use fossil fuels to do so, while The MIA believes government establishing infrastructure to procurement has a greater role supply hydrogen around New to play, and the commission Zealand is likely to be expensive. should look at all tools available, Heavy vehicles contribute such as ownership, purchase and about 22 per cent of transport regulation. emissions and are more difficult “While the power to purchase to electrify. It has been suggested is often seen as a tool to subsidise, that switching freight from it need not be,” explains Crawford. road transport to rail or coastal “As seen with the stated shipping may be a relatively low- objectives of political cost way of mitigating emissions. ¥¥20,000 announcements with regard to In addition, improving the Agent fee campaign EVs, government procurement efficiency of the transport system for the remainder of 2017 can be used to stimulate the and reducing car usage can cut development of a nascent emissions and congestion. technology or market, and or help The commission notes ITS that achieve scale in what’s a small use data to smooth traffic flows domestic market. and the further development of Our FREE service includes: “To avoid distortions in long-term autonomous vehicles can have a  Auction bidding facility resource allocation, it’s important a similar effect.  Free storage for up to 30 days  Photos updated in My Stock page low-emissions economy includes all Switching modes of transport  Export documentation gases and sectors. towards public transport, cycling  Arrange shipping “The current exemption and walking, and increasing the  Excellent security from the ETS for agriculture is use of car-sharing, will also help to Contact Kim Line We chat ViBeR distortionary and places an unfair limit vehicle usage. 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[continued from page 5] incentivise or penalise vehicle fleet and this is contributing to choices – along with different rates our emissions profile.” for particular sections of the roading The MTA wants any regulation network, congestion management to help transition to a low- and other policy settings. emissions economy to provide “Internationally, governments certainty to industry regarding use taxation rebates to incentivise timeframes, measures and goals the uptake of EVs. New Zealand’s so businesses can plan to adjust taxation system is less complex their practices when necessary. compared to most countries, “The government needs to so there’s room to integrate recognise initiatives to decrease the taxation system with wider emissions will be partly achieved economic goals. by a decrease in the fleet and “For businesses, if you want changes to the way it’s fuelled.” to incentivise the uptake of low- Scrappage numbers have been largely static despite the fleet increasing in The Imported Motor Vehicle emission vehicles, then a lower numbers so its age has slowly increased, says the MTA Industry Association (VIA) fringe-benefit tax rate compared have a 22 per cent market share as behaviour, such as improving generally supports the Productivity to ICVs would significantly a result of incentives introduced in public transport, and increasing Commission’s comments in its encourage the uptake of EVs. the early 1990s. ride and car-sharing initiatives. issues report on transitioning to a There’s some merit in considering These include no purchase New Zealand’s geographic low-emissions economy. a carbon tax on fuel with or import taxes, exemption from composition means relying on EVs David Vinsen, chief executive, offsetting tax benefits elsewhere 25 per cent sales tax, low annual isn’t universally feasible and other told Autofile: “The VIA notes there in the economy.” road tax, no toll charges on roads avenues for reducing emissions will be increasing opportunities As for the main barriers to the or ferries, free municipal parking, need exploring. for the importation and sale of uptake of EVs in New Zealand, the access to bus lanes, 50 per cent “Light vehicles spend EVs, both new and used, and Motor Trade Association (MTA) says reduced company car tax and a considerable amount of our members are already well- public perceptions of price and exemption from sales tax on leasing. time being parked, whereas involved in importing used ones. range anxiety create uncertainty. “These incentives send the commercial and heavy vehicles “It is interesting to note that “There’s also an element of signal it’s economically beneficial spend more time on the road, so some of the same entrepreneurs behaviour in which the purchaser to choose zero and low-emissions the electrification of the heavy who identified the arbitrage looks at their least frequent, greatest cars over high emissions,” says fleet may be an avenue for opportunity that enabled power,” says Greig Epps, the MTA’s Epps. “If EV uptake is to increase emissions reduction,” says Epps. the profitable importation of industry relationship manager. substantially, policies need to “Having said that, when used vehicles back in 1997 are “For example, in cars this offer serious incentives to those considering the net tonnage ‘reinventing’ themselves as would be a suburban resident city considering purchasing a vehicle. of a long-haul truck compared importers and retailers of used EVs. worker, who travels less than 50km “However, increased uptake with rail, electrified rail becomes “In doing so, they have had per day on round trips for work for must be coupled with initiatives to more attractive from an emission- to learn an entirely new set of most of the year but does one or ensure purchasers have access to reduction point of view.” information, such as charging, two big holiday trips requiring a energy supply, parts, service and The MTA says vehicle infrastructure, batteries, training, trailer, caravan or boat. repair facilities. scrappage numbers have been safety and so on.” “Consumers could buy smaller “Upskilling technicians, largely static despite the fleet Vinsen notes that EVs were vehicles or EVs for common use getting access to vehicle getting bigger, meaning its age anticipated to make up a small and own, rent or share a larger information to enable repairs has slowly increased. niche market only a couple of years vehicle for less frequent use.” and ensuring new technicians “Maybe more work could ago, but are now seen as inevitable. The MTA believes it may be are trained requires support be done around exiting older, He adds: “The only question is best to look at overseas examples and encouragement from higher-polluting vehicles from when and the rate of uptake.” to encourage EV uptake and the government as well as industry.” the fleet. Imports are at an all- The final report of the greatest impact as being from The MTA says emissions from time high, both new and used. Productivity Commission, an direct financial inducements. transport can be reduced by We are still allowing vehicles that independent Crown entity, is due In Norway, for example, EVs encouraging changes in travel are 20 years or older into the to be published in June 2018.

6 www.autofile.co.nz news Issues outlined in documents riefings to incoming are expected to be much safer, ministers on the work of the there’s a while to wait until this Ministry of Transport (MoT) technology is completely developed. andB the government’s transport “The greatest technological safety sector have been released. benefits are likely to come from They are designed for when advanced driver-assistance systems, changes in government occur so such as automated emergency ministers understand key issues braking and collision avoidance. in their portfolios. The documents “Connected vehicle-to- also underpin initial talks between infrastructure technologies could newly elected representatives, and assist people to drive more safely, the MoT’s management providing drivers with and board. real-time information Peter Mersi, chief about road risks, executive of the MoT, speed limits and road says new technologies conditions.” are transforming the The documents also world around us. note Kiwis will have The number of electric to be willing to jump vehicles (EVs) are on the Peter Mersi onto the technological rise, while new business bandwagon. models are being developed in “New Zealanders are often quick the automotive industry with to embrace new technologies, but cars becoming smarter, safer and tend to prefer buying used vehicles. increasingly automated. The average age of vehicles is 14 “New technologies, increasing years. The widespread availability movements of people and of shared fleets could accelerate freight, road-safety concerns and the modernisation of vehicles if environmental pressures will drive attitudes to ownership also change.” changes,” says Mersi. “While the Transport emissions have sector is changing, basic needs for increased by 78 per cent since 1990 transport won’t any time soon.” according to a report by the Ministry New Zealand’s transport system of the Environment and Statistics NZ, will become increasingly connected, and electric cars and light vehicles are automated, shared and electric. seen as a good way to reduce them. “The sector is going through an The MoT notes the fleet has unprecedented period of innovation increased by almost 50 per cent in vehicles, infrastructure and since 2000. “We now have one of services. Transport could be at the the highest car ownership rates in forefront of a fusion of physical and the world. About 60 per cent of cars digital worlds that’s transforming added to the fleet each year are how people live and work.” imported used vehicles.” In terms of the motor-vehicle To encourage a shift in travel industry, the MoT says most modes, it believes alternatives to marques will be developing new private car use are compelling. business models to sell “mobility as “Vehicle and ride-sharing could a service” instead of just cars. become more popular with people “Fully autonomous vehicles using smartphones and mobility-as- – when they become widely a-service platforms to organise and available – are more likely to be pay for trips. However, it’s unclear operated as shared fleets instead of how readily New Zealanders will individually owned, making travel embrace shared transport.” cheaper and more convenient Visit www.autofile.co.nz for an in- while requiring less infrastructure.” depth version of this story published While fully-autonomous vehicles on December 7.

www.autofile.co.nz 7 news Great turnout for golf day rovident Insurance’s annual golf classic at the Narrows Golf Club in Hamilton sawP 96 people taking the field in blue-sky conditions on the well- groomed riverside course. The sport was great and the Te Rapa Wholesale Cars barbecues ran hot, but the banter among people from the trade was really what it was all about. The winning team on November 22 was Finance Now. North Harbour Ford & Mazda took out the runner-up spot, while One Stop Automotive came third. Nick Proctor overseen by the team from John Andrew Ford Whakatane Autozone The men’s longest drive on hole two was hit by Tom Appleby, of Manukau Hyundai, while the female honour went to Cherry de Kort, of Ingham Hyundai in Auckland. Tim Brindon, of Motor Co, made the men’s longest drive on the 11th, while UDC’s Kate Rattrie scooped the same accolade among the women. Finance Now took out the title. Andrew Pietersz, of One Stop Don Atkinson, left, of UDC, with Provident’s Steve Owens From left, Tuks Nelio, Aaron Jones, Brett Williams and Andrew Brough Automotive, was closest to the pin, and Manukau Hyundai was a mask and snorkel, for twice and slices, while Mark Chilver, of Steve Owens, chief executive the best-dressed team. picking his ball out of the water, Winger North Shore, scooped best officer of Provident, says: “Massive In the less-serious honours, while the garden rake went to putt from 30 metres on the 17th. appreciation again to the team the greenkeeper’s award for most UDC with two shots played in Daniel Featonby, of Enterprise from UDC as co-sponsor of the divots was presented to the team the bunker and two others in the Cars in New Lynn, secured most event, providing refreshments from Wynn Williams. rough on the seventh. memorable play of the day, while and a place for weary golfers to Phil Means, of Ingham Hyundai, Shane Yates, of One Stop the club president’s award was chill out under the shade halfway received the water award, and Automotive, had the most hooks won by Rodney Brown. down the course.”

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www.autofile.co.nz 9 news Experts tackle future challenges

xecutives from some of the Commission’s competition branch, country’s top automotive gave a breakdown on key points and brands and insurance obligations in the Credit Contracts Ecompanies have come together and Consumer Finance Act. These for the Financial Services Future- included disclosure, reasonable fees, Proofing conference. responsible lending, repossession Organised by the Financial rules and dealing with complaints. Services Federation (FSF), the Horrocks pointed out that in its programme was tailored for its Consumer Issues Report 2016/17, the members, such as responsible, commission received 59 complaints non-bank lenders and leasers Guyon Espiner giving his address. about finance companies, 25 in Photo: Jason Courtis including the finance arms of motor-vehicle lending, 33 in high- motor-vehicle brands. MC-ed by Rawdon Christie, for businesses across the country. cost and short-term lenders, and 20 Among about 90 delegates the line-up featured local and The Radio NZ host said Phil about mobile traders. for the first event of its kind were overseas speakers who provided Twyford was one to watch out for, Karen Stevens, the Insurance financial services representatives insights into how changes to describing him as “Mr Fix Auckland” and Financial Services Ombudsman, from BMW, Mercedes-Benz, Toyota, regulation, technology, culture in reference to his housing and and Susan Taylor, Financial Services Nissan and Honda. and legislation were impacting transport portfolios. Complaints’ chief executive officer, European Financial Services, the future of New Zealand’s “This isn’t a guy who is going came together for a panel discussion Branded Financial Services, responsible lending sector. to skirt around the edges to get run by the FSF’s executive director, Motor Trade Finance, Custom Political broadcaster Guyon things done,” he added. “He’s a brutal Lyn McMorran. Fleet, Turners Automotive Group, Espiner kicked off last month’s political operator and will be right at Speakers revealed trends and Provident Insurance, Southsure conference at Auckland’s Pullman the heart of this government.” concerns their organisations were Assurance and Protecta Insurance Hotel with a dissection of the 2017 Antonia Horrocks, general seeing with credit and credit- were also represented. election and what it could mean manager of the Commerce related insurance complaints. They [continued on page 12]

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Lyn McMorran, the Financial Services Federation’s executive director, chairing a panel discussion [continued from page 10] included a case study from each relating to a motor-vehicle finance loan – in both cases with respect to the hardship application process followed by the financier. Stevens revealed that from July 1, 2016, to June 30, 2017, three per cent of complaints were Some of the delegates at the conference in Auckland. Photos: Jason Courtis Mitchell Pham, chairman of FinTechNZ about credit contracts compared to 65 per cent for fire and general responsible lending guidelines Speakers talked about advances set the planning emphasis insurance, and 27 per cent for and responsible credit-related in credit reporting and how these when it comes to compliance, health, life and disability insurance. insurance brochures. can help lenders comply with risk management and so on,” he Taylor said that since 2014 Kate Reid, of the Department the Anti-Money Laundering and explained. “Personally, I found there had been a 47 per cent rise of Internal Affairs, gave an update Countering Financing of Terrorism externally focussed sessions – in complaints received regarding about changes to New Zealand’s Act, and responsible lending – such as political, economic, future financial services. It was unable to anti-money laundering regime, particularly online. technology and innovation – determine whether this was due to and responsibilities for high- Also covered was improved opportunities to cast thoughts an increase in non-compliance or a value goods dealers and credit- data connectivity allowing for beyond the business paradigm in result of more people being aware of contracts providers. new channels, processes and which we operate.” dispute resolution schemes. Phil Ellison, the FSF’s deputy systems, and that 2018 will be the Steve Owens, chief executive The FSF has made a point of chairman, chaired a panel discussion turning point in this country for officer of Provident Insurance, said promoting these services in its with Equifax’s Shaun Evans and comprehensive credit reporting. the conference presented a good consumer resources, including the Centrix’s Keith McLaughlin. Mark Cowling, general manager opportunity to meet people in the of Toyota Financial Services, who finance and insurance sector. has worked in the sector for about “The diverse group of speakers 30 years, placed great importance chosen was representative of Get the latest NZ auto industry news on the FSF’s first conference relevant sections of the industry,” “particularly given the challenges he added. “Espiner’s views of the FREE and FIRST with the industry has faced in the past election and our future under the decade or so since multiple finance new government were current, company failures and the global relevant and entertaining.” financial crisis [GFC]”. Joe Bond, manager of financial He told Autofile: “During that services at Honda NZ, agreed with INSIGHT period, the ongoing viability of Owens about the election debrief. the FSF was put into question “It gave me a better understanding with the resultant dramatic fall in of what history can tell us about our Just go to http://autofile.co.nz/subscribe member organisations and budget latest government, and what we to sign up, it’s that simple constraints necessitated by the GFC. can expect from our economy and “It’s a testament to the hard work spending for the near future. and dedication of those involved “I also found information with the federation that since relating to machine learning in Then sit back and enjoy those dark days it is stronger than the credit-agency brief interesting. automotive news as it happens ever with the largest membership Finding ways of making better and base it has ever enjoyed. I believe more informed decisions will offer Monthly sales figures as they are released an annual conference should be a positives for lenders and borrowers key feature of events facilitated by as even the people who might put Local and international news as it happens the FSF to continue the hard-won themselves in harm’s way by getting momentum gained.” credit beyond their means can be Updates on the big and small players in the industry Cowling said sessions most further reduced.” beneficial to his company were Emma Mullane, general probably those focused on manager of Nissan Financial regulation, such as the Commerce Services NZ, said she went back to Commission’s update, dispute work with a better understanding Get all the important information from the industry’s resolution, anti-money laundering of the Commerce Commission’s most trusted source – for more than 30 years and developments in Australia. strategy and vision, and how this “These are topical and help may impact the business.

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For more information, call (09) 257 0050 WWW.IBCJAPAN.CO.JP www.autofile.co.nz 13 news Backing for working relationship utomotive associations but he only met with VIA in October. in 2008/09, while he has known and well-known business Tulloch describes the VIA chief executive David Vinsen people have shown their relationship between the two through his motorcycle years “so we supportA for the Motor Industry as being “all highs so far”, and have a long association”. Association (MIA) and VIA (Imported believes the MoU will result in many Dumper believes there have Motor Vehicle Industry Association) advantages – “by working together, been no real lows in the MIA-VIA working closer in the future. we can provide a single voice relationship over the years. Autofile has contacted some to government, regulators and “The used importers are proof to get their views on the past, industry groups”. of Kiwi ingenuity,” he says. “I present and future in light of a He adds: “We may have to agree respect many of them having tried memorandum of understanding to disagree on some issues, as we to extend the olive branch back in (MoU) being signed between the are bound to have different points Craig Pomare my term as president, but it was MIA and VIA – as reported in our of view on some aspects.” just too early then. November issue. Graeme Macdonald joined what “Everyone has matured and we “We support this move by was then the IMVIA in 1998, became now face new challenges, so to these two organisations,” says Craig North Island chairman in 2008 and me the MIA-VIA collaboration is a Pomare, chief executive officer of has been a board member of the natural step. the Motor Trade Association (MTA). board ever since. “We can agree to disagree, but “It makes a lot of sense for them to “I’ve been part of a lot of more importantly we can provide work more closely together. changes in the industry,” he says. a united front on shared issues. “They have a lot of matters in “We should work together rather With changes bound to come common and will be able to take than fighting. in future, especially safety and a more comprehensive approach “It’s better to work in the environmental, I see an advantage Stella Stocks to some. This could include background, and on policy and in leveraging our united mutual introducing a more cohesive make valid suggestions, rather scale in areas such as lobbying. approach to managing safety recalls than fighting fires. I’m sure a lot of “There can be leverage on for new and used imports. members think we should still be common themes given the “They will also be able to use fighting fires.” car industry seems to be an their combined voice to better Macdonald says changes over ‘easy target’ for some groups. effect. The MTA looks forward the years have altered the mindset The last thing we need is more to continuing to working with of dealers, who “are more focused strangulation by legislation.” both organisations. It can only on the business”. Dumper recognises expectations be good for the sector to present He adds: “VIA has changed its of some members may have to be a common and united voice on focus as well. We aren’t just looking managed in regards to, for example, policy, legislation and regulation after individual members – our Glynn Tulloch them being worried about a whenever possible.” mandate is wider and we’re able to localised subject when the national Stella Stocks, general manager look at the industry of tomorrow.” or international perspective may of motoring services at the AA, has Macdonald cites employing have to prevail. been involved with the industry Kit Wilkerson as policy analyst Going forward, he says the “new for “too long to remember”, but and adviser a few years ago as an government and influence of green notes the AA has always had a example. “We had to understand ideology in the face of New Zealand constructive relationship with the how it was going to work, what being a technology taker” may be MIA and VIA. influence we could have and work an issue. “We have worked together on on what’s coming. “One big factory could produce several items and achieved good “Our thinking has changed from this country’s sales production for outcomes,” she says. “An example being reactive and battling the all brands in less than a month,” Graeme Macdonald is how ACC levies are applied to government. We realised we had to says Dumper. vehicles as a result of ACC setting be involved at a deeper, policy level “So while it would be great to levies on vehicle registration costs to work with the government and think we could change the world, the dependant on their safety ratings. support members so the industry reality is no matter what legislation “The MoU makes good sense could go forward and dealers get on is wanted, we will have to source because it allows for a more holistic with business.” internationally manufactured approach to the industry. We need Wallis Dumper, managing director products to meet standards. to see how it unfolds.” of Subaru of NZ, has been involved “The obvious thing is the Glynn Tulloch, group general with the MIA since its formation and dilemma of used imports, which manager of European Motor him starting with the marque in 1996. I’m not against and never have Distributors, is president of the MIA, He has always been an active been. What I have always believed having been a member for years, MIA member and was president Wallis Dumper is that we should all play by same 

14 www.autofile.co.nz news

t rules. A level playing field would be “Through the years it has the MIA always fought us,” he recalls. great, but some VIA members may become professional with “It didn’t want the imports because struggle with that. structure and technical backing it affected their whole business.” “With matters such as the Takata to its members, and continues to Milner believes the benefits to recalls, we must provide a pathway be proactive in keeping ahead of New Zealand of used imports have to safety. We need to have someone changing times in our industry.” Peter Johnston been huge. “Prices of new cars are in government wake up and at least Johnston says used imports are cheaper and quality has improved.” stop recalled cars from crossing the strongly accepted in the market Looking ahead, he says the MoU border, ensure they are rectified and, “with the fast-changing means the industry can speak with prior to shipping, or have a sort evolution of hybrid and electric “one voice on important issues – I of flag or ban to ensure they are cars, it makes sense to interact with can’t see any disadvantages with it”, rectified before compliance. manufacturers with a MoU”. with big issues including road safety “With us of all collaborating, He adds: “We need to work as a and standards. I’m sure we can work it out with team and keep ahead of the new Mark Gilbert was in the franchise government assistance rather than generation of vehicles about to sector for more than 25 years and have bureaucrats try to wash their hit world markets. The industry is has “seen it all” – from starting with hands of it.” changing fast. The way we have Rod Milner AMIDNZ, the new vehicle importers’ Peter Johnston, of GVI in carried out business in the past will association, and then the Motor Auckland, was founding director not survive in the future.” Vehicle Manufacturers’ Association, of the Independent Motor Vehicle Rod Milner, owner of Rod Milner which became the MIA, through Dealers’ Association and served on Motors in Auckland, was founding to the 1990s when the IMVIA came its board for many years. chairman of a predecessor to VIA in into being. “The used-import industry 1988 – an organisation he says has He recalls animosity in the early wouldn’t be here today without been successful and “without it, we days. “The new car guys wished the the backing of the IMVDA as it was would not have the import trade used car guys would disappear and known then,” he told Autofile. “VIA we have today”. so on, and were at loggerheads over has become a strong voice in the He applauds the MoU. “Right regulatory issues.” industry and is well-respected by from day one we involved the old Gilbert, chairman of Drive Mark Gilbert the government. Motor Vehicle Dealers’ Institute, but Electric, has worked closely with the [continued on page 16]

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www.autofile.co.nz 15 news

[continued from page 15]

MIA and VIA on many projects since approach to connectivity. Willett notes more common retiring from BMW NZ in 2012. “There are issues between issues are arising. “The MoU makes “With the convergence of frequencies used by new cars sense. Combining resources and technologies happening at pace homologated for New Zealand and “The MoU knowledge, when required, to – and a seismic shift in powertrain used imports homologated for represent the entire industry on options, fuels and whether cars their countries of origin. There’s makes sense… pan-industry issues is the best drive themselves – the industry has still work to be done. our industry way – both for us and government new and daunting challenges. “This MoU reflects industry engagement. “The MIA and VIA will resolve maturity and recognises there is in a state “There may be some ‘blurring of these in a more agile way by working are opportunities – lines’ between new and used, but closer together, and presenting ‘one common to both groups of constant this may prove beneficial in the long face’ towards the regulator and other – that require better run. After all, all vehicles we have are industry sectors.” communication evolution” imported. Gilbert adds: “It’s about doing and alignment – Frank Willett, “The main advantages are that what’s right for NZ Inc. That may when approaching Autohub nowadays many importers have mean some positions or views are government agencies. used and new vehicle streams in left behind.” I’m sure it will be “About five their businesses. They can now One future possible issue is the successful.” years ago, Autohub be represented by one combined pace of new technologies in used Frank Willett, acting responded to a organisation when required. cars coming to New Zealand because chief executive officer VIA funding crisis by “There will be no doubt the “currently, used imports run a year or of Autohub, has been pledging $5 per car MIA and VIA will take different two behind the new-car sector”. involved with the IMVIA we shipped into New stances on issues, and this may be “Other areas will be emissions since its inception. He says Zealand,” Willett recalls. somewhat confusing for the trade standards and what will be done its relationship with the MIA “We would like to think and regulators. to get this country adopting more has varied over the years, this demonstrated our “That said, our industry is in a electric vehicles and becoming particularly with their “style”, support towards the state of constant evolution. It’s good more clean-energy independent, and the evolving market association, and the to see our associations understand safety standards especially around and regulatory environment importance of its role in this and do what it takes to move autonomous vehicles, and the over the past 30 years or so. our industry.” with the times.” WE WANT TO BUY VEHICLES! TOP DOLLARS PAID SAME DAY $$$

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16 www.autofile.co.nz Out with old, in with new e are nearing the kit of ways to foster and sold to them, so further and make them a special end of yet another inquiries that can lead they trust you. Don’t offer, a donation to their staff calendar year. to the conversion of let these customers be social club for instance. This WThe time comes when that prospects to sales. forgotten, giving them offer will depend on the type of hindsight trigger known as The market is reason to purchase business it is. “reflection” kicks in and you incredibly fragmented from somewhere else. Get a balanced mix of where feel great about what you have these days with many Also, they are your to source your customers from, achieved during 2017, or you’ll feel different mediums biggest advocates for and you will experience a more disappointed and bewildered as to offering somewhat MARK GREENFIELD referrals. Imagine if consistent flow of sales at your why this time has come again and slightly different Motorcentral each of your customers dealership. you achieved nothing you wanted customers. If you don’t cover off referred 10 other friends or family Don’t approach this with an to over the past 12 months. or have a presence across enough members to your business. Do unrealistic target of doubling your Moving from an old year options, you can miss out on the maths, it’s easy. Some will sales – that will take time. But each and into a new one is a strange potential opportunities. come and buy from you because extra sale will make a substantial process for many in business. However, there are a couple of purchasing decisions are heavily difference to your business over Some delay everything until the other areas I would suggest you influenced by recommendations time. Whether it’s an extra one, new year, while others are more make some effort to also focus on. from family or friends. five or 10 sales, they all add up. proactive and get changes under That said, you need to take way now so they can start again, a proactive approach and make ahead of the game. some changes that will influence Why should the time of year your results – as opposed to just make any difference as to what sitting back and getting whatever you do with your business? The you get. reality is it does because that’s Don’t let 2018 be what 2017 what many people do. was. Whether it was your best, Generally, it’s a time of year worst, or most average year, take for excuses, procrastination and control of your business to make then feeling good about thinking the next 12 months even better. of making some changes in the The team at Motorcentral new year. See how I mentioned wishes you all the best for the “thinking” in that sentence as Christmas period. We have that’s generally as far as it gets. “Take control of your business to make thoroughly enjoyed working Being proactive with your the next 12 months even better” with hundreds of dealerships business enables the dealership throughout 2017. to be more successful across a Your existing customer base Businesses around you that have We are super-excited at what number of measures – whereas is not only for repeat, but also a large number of employees are lies ahead and want to be there when operating a reactive referral business. likely to have someone in the with you, on your side, delivering business, you end up having to I’ve been highly repetitious market for a car at any given time. solutions and service to your fight month in, month out to in this area over the years and There is no harm in calling into business that have one objective make it work. I won’t stop until the majority your neighbouring businesses in mind – helping your dealership Don’t just sit back and wait of dealerships start to take this to say hello, introduce yourself achieve success. each month for customers to turn area of business more seriously and your dealership, and provide That success can come in many up because you have vehicles – these are your most valuable some form of special offer for any shapes from efficiency, profitability, advertised online in one or customers. staff member who purchases a processes, revenue, sales and so on. two locations. That’s only one These buyers know you vehicle from you. At the end of the day, we’re here to of many tools you have in your already. You’ve already converted You may even go a step help you do better.

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www.autofile.co.nz 17 news Sector to face fresh challenges he new government, car vehicle being imported sits on a safety, fuel economy, fuel-efficiency scale. autonomous vehicles, Tradeable credits, on the other intelligentT transportation systems hand, would be credits allocated (ITS) and modal shifts in how to those bringing in fuel-efficient transport is delivered are some of vehicles that could be traded or the issues that will likely affect the sold to those importing inefficient automotive sector in the future. ones. Those were some of the But the most important areas tackled by David Vinsen, message Vinsen wanted the chief executive of VIA (the audience to take from what he had Imported Motor Vehicle Industry observed recently was the modal Association), at the organisation’s shift in the way the world would Christmas function at Auckland’s access transport with change of Harbourside restaurant last month. use and ownership models “closer David Vinsen giving his speech He started with an overview of than we think”. 2017 by saying 165,000 light used “We’ve had little government some old ideas resurfacing in “Everything you read about vehicles have come into the country intervention for the past couple government as well as a different autonomous transport, connected this year as well 115,000 brand-new. of years, so what we’ve seen is the landscape in the way New journeys and vehicles, there’s a “The question always is what dynamics of the fleet are really Zealanders access transport. whole lot of stuff happening, and happens to them all. We will a natural reflection of market “Safety is back on the agenda it’s going to impact our industry,” probably scrap around 85,000 forces. If the government keeps and that’s natural,” he said. “It looks said Vinsen. from the fleet this year, so that’s a its hands off, that’s the sort of like an initial focus will be young “Right now in the United net gain of about 200,000. That’s thing that happens.” drivers and their choice in vehicles. States, 10 per cent of all vehicles a lot of vehicles. Looking forward Vinsen sees This is relatively benign for us. sold or traded are not being “With the environment, the replaced. Instead people are government is looking at fuel taking up subscriptions to economy again. The last time we alternative transport models, such were involved with this was around as ride-sharing. 10 or 11 years ago with the last “These sorts of things are not Labour government. happening in isolation. They are “We are one of the few countries across a number of technologies that doesn’t have fuel-economy and services, and what we’re trying standards, so the option being to do is see how this type of thing talked about is maximum averages. will affect our industry. “Maximum averages are “This is not a negative vehicles coming into our fleet message, changes are coming. – new or used – to meet our But it’s also business as usual. ¥¥20,000 economy standards.” We are expecting another good Agent fee campaign Some mechanisms he thought year ahead. We also need to be for the remainder of 2017 might be employed were “fee- thinking about the opportunities bates” and “tradeable credits”. that are going to come with these Fee-bates are a mix of fees and changes. There will be many.” rebates depending on where the Turn to page 43 for more of Vinsen’s views.

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18 www.autofile.co.nz tech report

Talk to the specialists about entry certification - fast, efficient, professional Vehicle Inspection NZ 0800 GO VINZ (468 469) www.vinz.co.nz When ‘h’ will be for ‘human’ he story below is a cheeky system is activated. A notification is sent to the neutrality will possibly see analogies narrative from automated premium road-user police for action. on the road system of the future. vehicle’s perspective in has been given priority Should road-users who pay more T2033. It’s obviously fiction, but many on the network. I SYSTEM OF FUTURE for services be given priority? Can of the points are being discussed join all other cars in The vehicle in the story we stop providers from building a today or are logical conclusions. moving to the side. above uses blockchain system that does this? Do we need We can expect in any future in Recent revocation of to verify commands. road-neutrality regulation? which the fleet becomes mostly the road-neutrality This is being explored The Musk Safeguards are fiction, automated, but also allows human rules has allowed Kit Wilkerson to assure external but possible. Many groups globally Policy adviser and analyst drivers, that we will require human- service providers to [email protected] signals are accurate and are pushing for the regulation of driven vehicles to have a warning prioritise higher-paying trustworthy. AI, which will drive much future – the “H-plate”, like the L-plate. customers. Instead of One of the greatest technology. adding new driving benefits car companies One group, which advocates for THE STORY BEGINS logic, the system uses the existing and service providers will get from “Friendly AI”, argues no AI should be H-type hazard 5km ahead. The code for emergency vehicle automated vehicles is data – the developed that uses methodologies warning fits. A query to other priority. Twenty seconds are added amount of information that can be that cannot be explained logically vehicles in the vicinity verifies the to the estimated time. collected and passengers essentially and causally. This would require warning also fits on their command Approaching the hazard, the being a captive audience. all AI to be limited to a rule-based ledgers, assuring it’s a trusted secondary navigation and safety We already see “freemium” list of priorities, all “if – then”. The command. systems are checked against the content on the internet that argument is when an AI does The command is pushed slower rule-based system. The requires users to pay or watch an something we don’t like, we’re able onto the stack and appropriate results are discarded to follow the logic to measures are initiated. Realising due to adopting the find the cause and this will result in a delayed arrival Musk Safeguards change it. time, my passengers’ details are restricting the use of While this may forwarded to the entertainment artificial intelligence seem like a good service sponsor for analysis and (AI) logic in safety- idea on the surface, update. A diagnostic reveals optimal critical applications it precludes other conditions and perfect functionality. to only those that options that might A long deceleration is initiated, can be explained work better, be more slow enough that the drop from with traditional logic efficient or produce 160-80kph isn’t noticed by the systems. better results. If passengers because 80kph is the The network has Will humans have to use an AI that didn’t H-plates in an AI future? safest speed at which “H” hazards slowed to 80kph and follow these design can safely travel. All other traffic is platooned vehicles space out to advert first. Models like this will guidelines performed better and required to slow to that when in optimise reaction time in case find us confronted with ever-more created safer cars, why not allow it? the vicinity. of emergency. Computational intelligent and targeted advertising. This also brings up an often- The passengers’ entertainment resources are re-routed to explore Automated vehicles will have to debated point regarding automated feed is paused to inform them escape vectors and real-time make way for emergency vehicles. vehicles – how safe will they have of the delay and the new time analyses of sensory data. They will be computers with wheels, to be proven to be allowed? What to destination. They are assured Just ahead is the H-type hazard, not cars with computers. This level of error is acceptable? I would additional content will be made the H-plate visible. As expected, it’s means they will be faced with not argue it’s absurd to hold them to available. Based on the response, it’s not travelling as required by law. It’s only issues related to cars, but also that standard. If they only perform downloaded and queued. travelling 3kph faster than deemed software. well enough to save one life a year, The emergency vehicle sub- safe for human drivers. A quick The debate in the US about net wouldn’t that be a good thing?

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www.autofile.co.nz 19 News in brief Vehicles wanted Security breach on register leads to misuse warning An industry organisation has reiterated its advice on accessing the dealers Buying now Motor Vehicle Register (MVR) after being advised that one of its member businesses breached privacy rules. VIA (the Imported Motor Vehicle Industry Association) has special NZTA status as a “representative body”, which allows its membership to VEHICLES WANTED access the register. All Audi, Porsche, Jaguar, Land Rover and Volvo Models It relies on car dealers and other businesses to maintain a high standard of record-keeping and security, while its guidelines should be followed to maintain a full and transparent audit trail. Malcolm Yorston, technical manager, says members need to have Jeff Dacombe . 021 532 355 . jeff[email protected] processes to minimise the number of staff who access MVR information – ideally two senior staff, such as the sales and finance managers. All other employees should send an email request with reasons to an authorised user. These emails should be retained along with the inquiry’s Mercedes-Benz pre-owned vehicles wanted. results for auditing purposes. Jeremy Spicer - Dealer Principal 027 700 0077 [email protected] “If the reasons for the inquiry do not comply with the gazette notice of authorisation, then the request should be denied,” says Yorston. “And implement an internal audit process by a director of the business, which will also be recorded and filed on your server.”

Mercedes-Benz Botany 279 Ti Rakau Drive, Botany. 09 535 8889 www.mbbotany.co.nz Spanish manufacturer opens first showroom in NZ European Motor Distributors To advertise here, contact: (EMD) has officially launched the Seat marque in this [email protected] or ph 021 455 775 country. Other than 120 Cordobas imported in 2000 and 2001, the brand has little Group’s first stock sale history in the Kiwi market. Seat’s 2018 Leon Cupra That’s changing with five models – the Ibiza, Leon, Leon Cupra, Arona he Optimus Group has Therefore, we haven’t taken the and Ateca – being advertised as available to test drive from its “store” on announced its initial public season of New Zealand into Green South Road, Newmarket, which was set to open on December 8. offering (IPO) on the Tokyo consideration. It’s on the site the ex-Schofields Holden parts warehouse, while prices start TStock Exchange (TSE). “The date of the IPO [December from $25,900 for the Ibiza to $55,400 for the Cupra, plus on-road costs. The group, which includes 26] was decided according to the The marque will have service and parts centres in Wellington and JEVIC, VINZ, Nichibo, FastTrack required preparation period and Christchurch – at Armstrong Prestige and Archibald Motor Group respectively. Compliance, Auto Finance Direct applicable laws of Japan on the Seat is known to many as a sporty Spanish marque. It was formed in and NCC Car Carriers, is hoping to basis of our aim to list in 2017.” 1950 and became part of the Volkswagen Group in 1986. grow its operations with funding In its IPO, Optimus plans to offer the IPO raises. 1,611,200 common shares. Of that, Buyers’ rights highlighted after survey flags issues Kiyotaka Kaetsu, of the Optimus 270,600 will be newly issued and An awareness campaign has been launched by Consumer Protection Group, told Autofile the aim is “to 1,340,600 will be privately held. after a survey showed buying or servicing vehicles was among the build and acquire the variation of The proportion of total shares highest reported issues. financing for expanding our business post-IPO on offer will amount to “We’re seeing Kiwis may not know what questions to ask pre-purchase overseas other than New Zealand 30.4 per cent based on the issued or what to do if something goes wrong post-purchase,” says manager Mark and expanding our new business”, number of shares being 5,022,525 Hollingsworth. and “to enhance our business bases as at December 8. The remaining “We surveyed more than 1,200 New Zealanders and about one-in-five through ensuring social credibility, shareholders will be mainly directors reported they experienced vehicle-related issues from private sellers and increasing publicity and acquiring of Optimus and its subsidiaries. dealers, or with repair and maintenance providers. Half didn’t take any excellent human resource. We will It says the nominal offering action to resolve it.” apply the raised revenue towards price as of the filing date of the The survey’s findings have been used to provide tips and advice to the investment, financing and registration statement is 1,710 yen buyers and sellers. Visit www.consumerprotection.govt.nz to find out more. capital investment of subsidiaries.” per share with the total offering When asked about the Boxing amount to be 2.76 billion yen. Marque reviews strategy after demographic changes Day listing date, Kaetsu says: “We If the offering price is achieved Toyota is aiming to halve the number of car models it retails in Japan to 30 have been planning the IPO at and the allocation fully subscribed, by 2025 to make better use of resources. the Japanese market and mainly the group will realise about Sales in its domestic market have been dropping for more than two decades targeting Japanese investors. NZ$35million. as the country’s population ages and young people lose interest in ownership.

20 www.autofile.co.nz new cars Global record for economy ia is set to boost its SUV range in New Zealand by introducing a hybrid model Kthat has set an impressive record for fuel economy. The Niro goes on sale in the first quarter of 2018 after a successful 10-month evaluation process, and will join the top-selling Sportage and Sorento in the marque’s Kiwi line-up. It’s the first dedicated hybrid SUV to be produced anywhere in the world, and has been built to run with a 1.6-litre petrol engine and Kia’s hybrid SUV, the Niro electric motor. Its official factory combined-use electric vehicle), which can achieve in the annual vehicle reliability through to electrical architecture and fuel economy of 3.8l/100km for a considerably better fuel economy survey published by Consumer infotainment systems. model on 16-inch wheels was put to thanks to its larger battery pack Reports. In its latest table, Kia Consumer Reports was the test when a Niro was driven from and bigger electric motor. climbed two places to sit behind impressed with the five-door Niro coast to coast in the US using expert These allow it to travel up to Lexus and Toyota. hybrid, especially its fuel economy drivers. It set a Guinness World 40km under electric power alone, The survey saw more than 640,000 and versatility. With the lithium-ion Record of 3.69l/100km for the lowest while factory figures suggest plug-in new vehicles scrutinised over 12 battery located under the rear seats, fuel consumption for a hybrid car. could achieve 1.3l/100km on mixed months with owners rating reliability a flat cargo floor is created when It will be joined by the brand- use with regular battery charging. on criteria from mechanical items, they are folded to create more usable new Niro PHEV (plug-in hybrid The Niro also featured strongly such as engines and transmissions, space than its hybrid competitors. Kitted out for safety Vehicles wanted olkswagen’s all-new Polo spacious than its predecessor and has been equipped with has 25 per cent more boot volume driver-assistance systems – up from 280 litres to 351 litres. Vpreviously reserved for the Golf The Polo Beats variant has a Toyota SUVs & Utes and Passat. Beats sound system with 300 watts They include front assist of power, eight-channel amplifiers, with city emergency braking, six loudspeakers and a sub-woofer and pedestrian and blind-spot to optimise sound quality. It also monitoring detection. includes Beats design detailing It’s the first model from the unique to the model. German marque to feature a Tom Ruddenklau, general new generation of the optional manager of Volkswagen NZ, active info display and has the says: “The new Polo benefits Hilux • Land Cruiser • Prado latest generation of infotainment from significant research and systems, including an eight-inch development investment VW has glass-covered touchscreen. placed into its older siblings – the The sixth-generation Polo Golf, Tiguan, Passat and Touareg.” boasts new proportions and design The new Polo arrives in modifications. With a longer, dealerships in February with wider, bigger wheelbase, it’s more pricing yet to be revealed. With more than 14 million units We are always looking to purchase late model sold to date globally, the NZ New cars aNd commercials model is one of the world’s most Paul Curin 0274 333 303 [email protected] successful compact cars. miles motor group

www.autofile.co.nz 21 industry profile Three decades in car trade ne of Auckland’s best- known car dealers, John Moyes, predicts the internetO will continue to shape the motor-vehicle industry. After 30 years as part of one of the city’s most successful dealerships, he says development of online sales is the biggest change during that time. t “If you can’t do online sales properly, you can’t do business,” John told Autofile. “The internet and online sales are the biggest changes in the past three decades and will continue to shape the industry. “We were getting a lot of sales off our website and Trade Me. Although many cars are bought online, people will still want to look at a used vehicle before they buy.” John predicts there will be more boutique and new car yards with John Moyes in the Holden showroom back-up support through service centres across the country. John is co-director of Moyes up Holden. Nissan was on the paid us money to drop the other “There will be more pop-up Motor Group in Panmure, which corner of the Panmure roundabout franchise. Alan was instrumental in stores in malls. I think most people closed earlier this month, along and we had a dealership on Great developing the site. We decided it want to go and eyeball a car with Charles Tisdall. South Road in Ellerslie opposite was better to have one big site and before they drive off. There will They decided to call it a day Rockfield Road. It was called run the business from there. We still be showrooms. People will go after Holden announced changes Tappenden Motors, which previous planned it on that basis – it made to them and then search online to its long-term business strategy, to that had about five dealerships sense to have one site.” for the best deal.” which included cutting the in the 1950s. At that time, John was more As for electric vehicles (EVs), number of its franchises across “I came into the business in involved in parts and service. he believes they are the future for Australasia. 1984. Two years later, we bought They then bought land on either the industry. “I think most people The business, which also has a the Mount Wellington site. It was side, which opened up the whole will buy an EV if the price is Suzuki franchise and used-vehicle a golf-driving range and had a dealership and created a massive reasonable – many are concerned operation, was started by John’s dealership out front. We sold the street frontage. When they built about global warming”, while father Bill and brother Alan during Ellerslie site and then sold the one the premises, his father said the manufacturers “are racing to make the mid-1970s. in Panmure in 1991. business would last 20 years, but EVs that are affordable for the “We had Morris and Nissan,” “We had pressure from Holden “he was out by 10”. mass market”. John recalls. “In 1979, they picked to be a single franchise and it John’s brother Alan fronted 

the Youth World Championship in “Probably my favourite car Riding waves Germany. But after I had a family, back then was a mustard-coloured joining the family business was MG BGT I owned in the mid-1970s. to success an opportunity to make more I was a kid in a sports car back money than making sails. We had then. After I started working for John Moyes was a sailmaker and our first child in 1984.” John and Moyes, we would drive the demo champion sailor before he joined his wife Terri went on to have two cars and changed vehicles a lot.” the family business. more children. John says his favourite Holden “I was national Flying Dutchman “I haven’t sailed for a few years Rangitoto Island to St Heliers about is the HSV GTS-R, “it would be right champion in 1983 and made the now. I stopped in my 30s and we 15 times. I also do a bit of fishing.” up there”, but he will be driving out pre-Olympics team in that year, but bought a beach house instead. His first car was a white Morris in a dark grey Toyota Land Cruiser, I didn’t go to the 1984 Olympics “I still do a lot of ocean 1300 in the early 1970s. “Having a pictured, “which is a great vehicle”. because New Zealand only took swimming and have done so car at 17 was all that mattered. Of “I have a place on the one team,” he says. over the past 20-odd years off course, I didn’t buy it myself. I had Coromandel and will be launching “During the 1970s, I went to Kohimarama. I have swum from a Vauxhall Viva after that. a boat off the beach with it.”

22 www.autofile.co.nz Moyes Motor Group’s premises in Panmure, Auckland, during the 1990s The same site, about three decades on

t television adverts for the Moyes Motors sign on Mount it has been a pretty good road for years and they got a bit of a shock dealership on Ellerslie-Panmure Wellington,” explains John. “It us. We’ve been a profitable, steady when the announcement to close Highway. “We hit it hard for the featured in our television advertising dealership. We have sold more than was made. It has been great having next 10 to 20 years, as well as for years. McDonald’s loved it and we 60,000 cars during the past 30 years a stable workforce. advertising in the NZ Herald. We became a landmark over that period.” – about 2,000 cars a year.” “We will tidy everything up here, found TV was the medium to get The business also ran a $2,000 John’s son Tom also works for the sell the property and look around at the biggest impact, but that has all to $3,000 minimum trade-in business. “We both have other plans. what’s available after that. A lot of changed with the internet. campaign back in the 1990s, which You just have to get on with it.” people are interested in the site.” “We have continued with ads worked well. His biggest priority of late has John says it’s difficult to come in the Herald and that still worked “One person towed a car been getting jobs for his staff – up with a recipe for success for for us – people would walk in with in one day. It was pretty old there were about 60 on-site when other dealers. “We were reasonably a page of the newspaper in their and practically expired on our Autofile went to print. conservative. Follow-up service hands with the cars they wanted driveway. Alan came up with the “We have found work for about for new vehicles has to be very to buy. idea. We ran it for about eight 40 and I think most will get jobs good. People expect top service. “We kept pushing the years, on and off, when we wanted easily. We have some people who Expectations have got a lot higher advertising. We were on television to give it a bit of a shunt. have been with us for 15 to 20 for new cars as time has gone on.” and in the papers more than “At one stage we got to 110 staff everyone else. Our marketing with a bigger parts and service wasn’t fragmented, but no department, but for the past few dealer gets to dominate through years we’ve been running in the advertising these days.” mid-70s. We’ve had a lot of people NYK VEHICLE And who came up with that through over the years, especially EXPRESS SERVICE world-famous-in-New-Zealand on the used-car side – at least television and radio advert 300 to 400 employees and a few “opposite the big McDonald’s and became dealers.” beside the big Mount Wellington”, John bought his brother out of Reliable fortnightly which put the company on the the business some 13 years ago, vehicle logistics map for Aucklanders and out- while his father Bill retired in the service JAPAN to NZ of-town buyers? A copywriter mid-1980s. at Andy Tyler’s Digital Masters “My brother decided to move on conjured up the catchy line. and do something else. We all got on PORT TO PORT / “They digitally added a huge well. It was quite a good thing and DOOR TO DOOR  to Auckland, Christchurch, Wellington, and Nelson

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www.autofile.co.nz 23 newslooking back The month that was.... December With more than 30 years of history, Autofile looks back on what made the headlines

December 1, 1997 December 6, 1999 Customs seize hundreds of units Fundamental shifts across the Some 355 vehicles worth more than motor-vehicle industry $3 million were seized by Customs during Predictions were being made that wholesalers the year with 79 taken on the grounds of would break up and sink on the rocks of a “valuation fraud”. New Zealand dollar to Japanese yen cross-rate But the majority – 276 units – were seized of 44.0, while new car distributors rationalised for odometer winding. Wound vehicles were and smaller dealers rushed to build alliances a prohibited import under the Customs to survive. prohibition order. The forecasts were made by key figures in A further 55 units were being held by the automotive industry. They also said the Customs. The official figures did not reveal whether the offending country would see some new franchises along vehicles were imported by licensed dealers, private individuals or with more new-vehicle distributors moving into used imports on the unlicensed traders operating illegally. back of a stronger, growing economy. The release of Customs’ figures showing 185 vehicles, whose The new Labour-run government was unlikely to have much of an Japanese service records were checked but appeared to have been impact on the automotive retail industry and was unlikely to bring back clocked, was expected to spark another dog-fight between used tariffs, according to industry pundits contacted by Autofile. importers and the MIA, representing new vehicle distributors. “The main thrust of tariffs is to protect jobs and there are no longer John Nicholls, chairman of the Independent Motor Vehicle Dealers’ any jobs to protect in the auto industry,” said Steve Downes, chief Association (IMVDA), said that while the level of clocking was still executive of the Motor Vehicle Dealers’ Institute. significant – “even 0.5 per cent of vehicles being wound would not IMVDA chairman John Nicholls said the exchange rate would have be acceptable” – he believed the vehicles checked were specifically an effect and it could go as low as 44 yen to the kiwi if projections from chosen to present the worst possible scenario. Japan were correct, causing mayhem in the used-import industry. Aucsat’s chief executive officer, David Vinsen, said the exchange rate and other factors would cause wholesalers to disappear. “I think also that all new car distributors have no choice but to become involved in the used-imports market.”

December 9, 2005 ‘We’ll teach you bastards’ That was the essence of an uncompromising message from the governor of the Reserve Bank, who had that month lifted the official cash rate (OCR) to 7.25 per cent. While he didn’t use those words, Allan Bollard left no room for doubting his intention to keep pumping up the OCR – and interest rates – until he dampened down consumer demand, slowed the housing market and reduced inflation, which was sitting at 3.4 per cent a year. By lifting interest rates, Bollard ensured the New Zealand dollar would remain at near-record levels into the new year, making cars cheaper Your Import Finance to source overseas than they had ever been with the dollar sitting at around 86.6 yen. The downside was that higher interest rates and a slowdown in Specialists! consumer spending would make it more difficult to sell cars profitably – no matter how cheaply they could be purchased in Japan. Flexible import and floorplan finance for dealers Ironically, many dealers reported a significant lift in sales during the Streamline your buying, and your cashflow month. But the same traders had their fingers crossed that it would One finance facility / multiple suppliers - giving you the freedom continue into the new year and not turn into a “dead cat bounce” – when to choose how and when you buy, ship, and comply. a market looks to be picking up, but is actually “dead”. Bollard said he had to take strong action as the Reserve Bank Find out more: w blackbirdfinance.co.nz N 0800 000 999 remained concerned about the tightness of resources and the persistence of inflationary pressures.

24 www.autofile.co.nz 67 Million The number of times Trade Me vehicles were eyeballed last month.*

Be seen, get in touch with your account manager | [email protected] | 0800 428 862

*Based on the number of views for the month of October 2017. www.autofile.co.nz 25 Industry movers NZ labour market report

DAVID VINSEN, chief executive of VIA (the Imported Annual net migration October, growth had slowed to Motor Vehicle Industry Association), has been continued to pull back from 4.7 per cent per annum. Rule appointed as chairman of Intelligent Transport July’s peak to reach a 10-month changes from earlier in 2017 may Systems (ITS) New Zealand’s board. low of 70,694 in October. be deterring foreigners from “My experience in governance, and understanding Fewer people are coming to entering the Kiwi job market. of the vehicle-supply chain, complements other New Zealand on resident visas Student arrivals eased by board members, who represent the varied aspects of the ITS eco- compared to a year ago, while 2.5 per cent over the same system,” he says. arrivals of foreign students have period. The number of such Mohammed Hikmet, chairman of the HMI Group, will continue as plateaued at about 4,000 below migrants has held relatively ITS NZ’s president. He will lead international activities as this country’s their early-2016 high. stable over the past six months, representative on ITS Asia-Pacific’s board and the ITS World Congress’ Infometrics, which specialises but is likely to fall further organising committee. Visit www.autofile.co.nz for more on this story. in economic forecasting and once Labour implements new analysis, is predicting that migration policies. HANNAH McKEE has been appointed as marketing further rule changes by the Reducing the amount of and communications manager of the Financial new government will accelerate time students can be in paid Services Federation (FSF). migration’s decline next year. employment while in New A former Dominion Post and Stuff.co.nz journalist, Arrivals in October were Zealand could deter about she manages all aspects of the industry body’s 0.4 per cent higher than last 8,000 from entering the country. communications, as well as marketing, events, digital, and member year, but departures lifted by Taking this alteration in tandem engagement. nine per cent over the same with other proposed policy Lyn McMorran, executive director, says the decision to create the period. Although rule changes changes means Infometrics new role reflects the FSF’s growth and continuous work towards appear to be primarily aimed expects net migration to fall promoting responsible lending. at reducing arrivals, the steady more rapidly from mid-2018. increase in departures is Meanwhile, the seasonally TO FEATURE IN INDUSTRY MOVERS consistent with restrictions on adjusted unemployment rate fell EMAIL [email protected] migrants’ lengths of stay. to 4.6 per cent in the September In the three months to 2017 quarter. Every vehicle dealership October, the number of foreign This was down from 4.8 citizens leaving was 25 per cent per cent in the June quarter, in New Zealand higher than a year ago. This according to Statistics New translates to an extra 1,250 Zealand, and was the lowest should own this book departures in the August to jobless rate of 4.4 per cent since October period compared with the December 2008 quarter. the same three months last The labour force participation year. In contrast, foreign-citizen rate increased to 71.1 per cent arrivals were only down by 150 in the quarter as 54,000 more over the same period. people entered the labour force. Flows of Kiwis contributed to “This is the highest rate on about half of the lift in total net record,” says Diane Ramsay, of migration between 2012 and Stats NZ. “This is in line with 2017. However, these flows have strong quarterly working- barely changed in the past three age population growth and months. near record-high annual net In the three months to migration.”

The pioneering spirit of used imported car dealers, October, resident-visa arrivals In the September 2017 from the early days to modern era plunged by 16 per cent quarter, the employment rate compared to a year earlier. was 67.8 per cent, up from 66.7 What “they” threw at the industry to try to shut it down - Tighter requirements from per cent in the previous quarter. the politics, the barriers, big corporates against small business the previous National-led “Recent quarterly changes in the fun, the antics How the used import industry thrived - government raised the bar for employment levels have been and, most of all, the will to make a buck skilled migrants and reduced volatile, reflecting our dynamic eligibility for family-based labour market,” says Ramsay. Half-cuts, double invoicing, speedos, emissions, seatbelts, frontal impact, legislative change. It’s the history of your industry and it’s all in... resident visas. “However, the trend series shows From the rising sun to the long white cloud Growth in work-visa arrivals a steady increase.” cooled substantially since the Annually, employment BUY IT NOW three months to July when they increased by 4.2 per cent with To order visit autofile.co.nz/book and fill in the order form or call Brian McCutcheon on 021 455 775 were growing at 17 per cent more than 85 per cent coming Profits from the sale of the book will go to not-for-profit organisations a year. In the three months to from those employed full time.

26 www.autofile.co.nz f & i focus Getting in the swing for charity ach year Protecta Insurance an auction with the day raising supports the annual charity more than $20,000 for the Life golf day organised by the Education Trust. RotaryE Club of Half Moon Bay at Kerry Hoffman, senior sales Pakuranga Golf Club. executive for Continental Cars Stephen Glading, managing – Audi, was full of praise for the director of Protecta, welcomed event and, as co-naming rights the 96 players and explained sponsor, believes it was a good the rules of the ambrose format investment. before they walked to their tees “Stephen and the crew at in perfect weather for a shotgun Protecta have been supporting start at midday. The UDC team – Lawrence Profit, Don John Webber of My Finance, with Grant Audi and Conties for a long time, Atkinson and Nick Proctor Atkinson and Helen Andrews of Instant Finance The event, which was so any time we can help each co-sponsored by the AA and other out is always good,” he says. Continental Cars, started with a “The fit of the clients who light lunch and was interrupted attend are aligned to our brand. with refreshing beverages and a It’s also low key and a great way barbecue on the ninth. It ended to show off Audi in a relaxed with dinner and prize-giving. environment. First place this year went to “It’s good to be able to support Box, Cop and Shop, but because the charity. We’ve been supporting of the generosity of the many the event for a few years, but have sponsors, all teams received a taken on the naming rights over prize. the past couple of years. It’s a nice Prize-giving was followed by Bikes from Auckland Motorcycles & Power Peter Steel, of Yes Finance, in action fit for us.” Sports and Harold the Giraffe

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www.autofile.co.nz 27 motorsport

Rally Australia venue splutters

ust as the Rally of New the event to stay at Coffs Harbour, poor access to photo-points. to pair New Zealand with another Zealand’s hopes of staging the remoteness and small size The bosses of Hyundai World event that works logistically for a round of the World Rally of the town causes issues for the Rally Team wondered aloud how the championship. JChampionship (WRC) seemed multi-million dollar “show”. many people lived in Coffs Harbour, New Zealand’s biggest lost forever, Australia may have Teams must truck their whole bemoaning “not that many”. weakness has always been the unintentionally thrown the Kiwi service and spares operations The best that FIA’s rally director, rich funding injected by Australia’s event a lifeline. long distances from the nearest Jarmo Mahonen, could find to say state governments in return for The Australian round of the sea or airport. about the event this year was: “The the rights to host the event. WRC is held at Coffs Harbour, Sydney is a six-hour truck drive good thing about this event is that Rally Australia has been population about 70,000, a venue away and Brisbane is five hours. it’s very safe – because there are confirmed for 2018, but not after disliked by teams, crews and Accommodation is limited and no spectators.” that. The teams are keen for the media and, this year, shunned by local residents turn out in their Peter Johnston, chairman of championship year to finish in a spectators. hundreds, not thousands. Rally NZ, is hopeful that all of this European country, mindful of the Although Rally Australia Photographers are scathing of could work in this country’s favour, benefit of having that continent’s officials are adamant they want the character of some stages and especially if it becomes possible timezone television coverage. Ford’s superteam retains backing -Sport has re-signed loss is New Zealand’s gain with him five-times world rally now set to compete more at home champion Sébastien than he has recently been able to. MOgier in a move that must have Driving the locally developed caused anguish among other Hyundai AP4+ car, Paddon team bosses. won the Tauranga-based Rally Courted over recent weeks by of New Zealand ahead of Matt Citroen, Ogier was confirmed with Summerfield and championship M-Sport at the end of November – winner Andrew Hawkeswood. meaning the team retains its Red Hyundai WRT manager Alain Bull backing. Penasse says the team has reshuffled In addition to winning the 2017 Sébastien Ogier, inset, its “weak” 2017 line-up to respond to World Rally Championship (WRC) has re-signed with the pressure to attack the world title. M-Sport Ford Rally team drivers’ title, Ogier was also key to Team regular Thierry Neuville ran bringing M-Sport its first world title driver Elfyn Evans has secured the nightmare year is over and, with a 2018-specification i20 WRCar in the in a decade and first without active second seat at the team. limited Hyundai WRC drives in Rally of Great Britain and season- Ford participation. Young Welsh Meanwhile, Hayden Paddon’s 2018, it seems the championship’s ending Rally Australia this year.

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28 www.autofile.co.nz motorsport Career spans four decades nly a handful of Kiwi rally stalwarts can claim to straddle three separate top-levelO category eras – and Jeff Judd is one. He could, in fact, claim more than three because he has rallied Groups 4, B, A and N in a career that dates to the 1980s. More than that, he has been one of the rare types who can travel on both sides of the car having competed as driver and navigator/co-driver. Now 56, Christchurch-based Judd is still as active as ever in the sport and recently won the 2017 Mainland Rally Series in his Subaru Impreza WRX. His passion for gravel-road motorsport started as a spectator Jeff Judd, inset, is equally adept behind the wheel as with pacenotes in hand. in the early 1970s. Here he masters his Escort in true rallying style at the 2016 Rally Whangarei “My first memories are of the mid-70s with the BDA Escorts and Westland in 1986 – also his first and Australia. The year finished off Another positive influence is the rotary Mazdas,” Judd recalls. “I got drive in a Mk2 Escort RS2000. with Greg Graham in the first Targa success of Hayden Paddon in the taken out to stages of the Heatway A switch to navigating put Rally NZ and winning overall. World Rally Championship (WRC). Rally by my uncle Phil. A few trips Judd alongside the likes of Marty These days, Judd is as “Hayden has certainly shown away servicing at the Westland Roestenburg, Garry Cliff and later comfortable behind the wheel the way, but he worked so hard Rally and helping block marshall Brian Stokes. of a pristine Escort RS 1800 as to get there,” says Judd. “I think [road closure] at the Hanmer Rally “That was exciting because his Subaru Impreza. He says he the talent is definitely there with and that was it, I was hooked.” the machinery was right up to the hasn’t had a chance to try an numerous drivers. It’s all about At 20, Judd navigated the 1981 moment. In Brian’s case, that meant AP4 or R5 car yet and reckons making the most of opportunities, Timaru Rally with old school mate we were rallying what the Ford that opportunity would be “too a work ethic as you would expect Simon Davies. factory team was using.” tempting”. from a professional sports star. “I navigated for Simon – he had In the 1991 Rally of New The sport is in great shape at “There’s talent like Max Bayley managed to buy a car before me. Zealand, Judd and Stokes were the moment, Judd says, with new – look how well he’s done first time We rolled near the end of the rally.” battling with Neil Allport for first competitors emerging and strong out in an R5. Ari Pettigrew. Lots of In 1982, he purchased his own Kiwi until a puncture delayed entries to events. others.” car – a Mk1 Escort RS2000 – and the southern pair, who finished “The new cars have breathed The challenges facing the sport did five South Island rallies. “It seventh overall. life into the sport with different are many. Prime rallying roads are wasn’t long before I got a BDA- An exciting 1995 included being makes and models available. Many being swallowed up by lifestyle engined car. But that engine was invited – along with Paul Adams of the top drivers have faded away, blocks and urban sprawl, noise trouble, so it was back to the – to help Possum Bourne in the mostly because of costs, but there and dust restrictions limit how faithful old Pinto engine.” Prodrive works team doing rallies in does seem to be some corporate often “classic” stages can be used, Judd’s first rally win was Indonesia, Malaysia, New Zealand money around these days.” busy lifestyles place constraints

Flying high while calling the notes for Judd with Subhan Aksa at on competitors, organisers and Mark Tapper on Rally Sardinia in 2009 Rallye Deutschland in 2012 volunteers, and forest managers are no longer granting easy access for motorsport in many areas. And the loss of a WRC round for 2018 has been a major blow. “It’s a real shame that other countries have jumped in front of New Zealand for a WRC round, but with hard work and hope we should never give up. Places such as Turkey seem to have worries like security, so you never know.”

www.autofile.co.nz 29 disputes

The case: The buyer wanted to Trader ordered to respray vehicle’s reject his 2004 Mazda Axela due to defects in the paintwork after it was resprayed. The trader denied there defective paintwork for second time was any fault with the vehicle, and said its appearance was in keeping with a vehicle of its age, price and Background the car, and said its appearance was some blemishes, nearly all mileage. Michael Bullen bought a 2004 in keeping with a vehicle of a similar vehicles of the same age, price The decision: The tribunal found Mazda Axela for $9,074 from age, price and mileage. and mileage had cosmetic there was insufficient evidence that 2 Cheap Cars on February 4, 2017. blemishes, and the defects the car’s appearance breached the It had an odometer reading of The case weren’t so significant that a acceptable quality guarantee under the Consumer Guarantees Act (CGA). 69,822km when sold. In considering whether the reasonable consumer would find The trader was ordered to repaint Before purchase, Bullen and his paintwork failed to comply with them unacceptable. the vehicle again. son inspected the vehicle. Both the CGA’s acceptable quality Section 28 of the CGA imposed The Motor Vehicles Disputes said the Axela was “grimy” and guarantee, the tribunal could only an obligation on the supplier of At: Tribunal, Auckland. dusty when they viewed it, so they take account of the condition services that services be carried were unable to closely assess the of the paintwork when it was out with reasonable care and skill. allow Bullen to reject the Axela – it paintwork. supplied to Bullen. The adjudicator was satisfied only allowed a consumer to cancel Shortly after buying the car, It couldn’t consider the that the trader provided a service a contract for the supply of services Bullen took it to a mechanic to bodywork’s current condition to Bullen when it agreed to use its because of sub-standard work. check for potential faults. Although because the car had been agent Carbase to respray the car, The contract to buy the car no such problems were found, resprayed and any defects were and that it was poorly resprayed. wasn’t a contract for the supply of the mechanic mentioned the caused by the sub-standard The tribunal’s assessor services. It was a contract for the paintwork had defects. respray, rather than any issues with inspected the vehicle after the supply of goods. Bullen took the Axela to By the Axela when it was supplied. hearing and said that paint was Therefore, Bullen couldn’t Accident Ltd on March 9 to have the The defects caused by the sub- coming away from the right- cancel the contract to buy the paintwork inspected. It provided an standard respray were considered rear inner guard due to poor vehicle and obtain a refund of the estimate of $2,342 for repairs. under section 28 of the CGA that preparation, there was overspray purchase price. He contacted the trader which, required repairs be performed with on the right-side door shuts and Instead, Bullen was entitled to after some persuasion, agreed to reasonable care and skill. wing mirror, the paint was poorly have defects in the car’s paintwork respray the vehicle. He took it to The tribunal was unsatisfied applied to the rear of the bonnet, remedied under section 32(a) of Carbase, the dealer’s preferred the appearance and finish of the and there was masking tape on the CGA. repairer, and instructed it to respray car when it was supplied to Bullen the bumper and rear-guard gaps. Bullen asked that the remedial the front end, rear quarter, two breached the act’s acceptable The rest of the repair wasn’t of work be performed by By front quarters and wheel arches. quality guarantee. an excellent standard, but was Accident, probably because he had The Axela was returned It found the evidence provided reasonable. diminished faith in the quality of to Bullen, who said he was by Bullen didn’t demonstrate the previous respray. disappointed with the quality of the vehicle had defects in its The finding However, the tribunal the work. appearance and finish that a The tribunal was satisfied the considered that the dealer should On May 15, the car was assessed reasonable consumer would find service provided by the dealer be given the opportunity to by OEM Vehicle Inspection, which unacceptable. to Bullen wasn’t performed with remedy the sub-standard respray. said the paintwork was in poor The estimate from By Accident reasonable care and breached condition. didn’t provide detail as to the section 28 of the CGA. Order The following month, By nature and extent of the defects. Section 32 of the act stated The trader was told to respray the Accident provided an estimate Further, photographs provided what remedies were available vehicle to ensure its appearance of $3,599 to repair the defects with the estimate failed to satisfy when a supplier failed to comply was of acceptable quality. following the respray. the tribunal that the condition with the guarantee that services In particular, it had to remove Bullen applied to the tribunal to of the car was unacceptable to a would be performed with all overspray, and all panels that reject the Axela. However, 2 Cheap reasonable consumer. reasonable care and skill. required respraying had to be Cars denied there was any fault with Although the photos showed However, that section didn’t removed from the car.

MEDIATION SERVICE FACILITATING RESOLUTION

30 www.autofile.co.nz disputes

The case: Ford New Zealand Former tribunal assessor provides advised the buyers of a 2014 Kuga that their SUV was subject to a safety recall and needed repairs. evidence for buyers in recall case The company said if the issue wasn’t addressed, an engine fire could occur. The buyers then rejected Background levels to reduce the risk of fire. blaze resulting from that. the SUV under the terms of the Robert Burnard and his wife Mr Burnard said the car Stage-one repairs were carried Consumer Guarantees Act (CGA). The dealership that sold the vehicle said Catharina bought a Ford Kuga in never overheated, but he was out on the Burnards’ Kuga in they weren’t entitled to reject the car. September 2014. concerned about the recall and August 2017. The buyers’ In April 2017, Ford New visited Capital City Motors in The dealer and Ford NZ The decision: rejection of the vehicle was Zealand told the couple their April. He told a salesman he submitted there was no evidence dismissed. vehicle was subject to a safety wanted to reject the Kuga due the SUV had ever overheated recall and needed repairs to its to a breach of the guarantee of or shown signs of coolant loss, At: The Motor Vehicle Disputes Tribunal, Wellington. cooling system. acceptable quality in the CGA. and there was no evidence of If it wasn’t fixed, an engine fire The dealer’s group service the circumstances that could could occur. They decided to reject manager, David Lavington, told potentially lead to the cylinder fault with the car and had failed the car. Mr Burnard on May 3 that it head cracking. to identify any factors to indicate Capital City Motors, which sold wouldn’t accept the rejection On this basis, they denied the the SUV’s cylinder head was at risk them the SUV, said they weren’t because it didn’t consider the presence of any defect in the car. of cracking, and that Harcourt’s entitled to reject it. vehicle had a defect. They submitted the repairs were comments on the call-back were On May 24, Mr Burnard emailed precautionary and designed to outside the scope of his expertise. The case Lavington stating he didn’t reduce the risk of overheating, The tribunal’s assessor agreed Early in 2017, the Burnards saw a consider a reasonable consumer cracking and a potential fire that a crack in the cylinder head television news story regarding a would regard a potential issue that occurring in the future. needed to start for it to continue Kuga engine fire in Auckland. could result in a fire in the engine Mr Burnard obtained a and the engine would have had Concerned their car could compartment as acceptable in a report from John Harcourt, an to overheat before that would be at risk of going up in flames, $38,990 vehicle. experienced mechanical engineer happen. There was no evidence the Mrs Burnard made inquiries with Lavington replied two days and former tribunal assessor. car had overheated. Capital City Motors’ Kapiti branch, later stating the repairs were a Harcourt said the design fault but no further information was “precaution to avoid any issues described in Ford NZ’s recall notice The finding available. arising with Kuga vehicles” and was a “serious fault in the cooling After reviewing the evidence, the Four months later, they received it didn’t mean the SUV posed a system”. tribunal found there was no basis a safety recall notice from Ford NZ safety risk. In his view, the failure of the for finding that the Kuga had a for the Kuga describing the Stage-one repairs were cooling system that caused the cracked cylinder head because problem. designed to re-route the coolant cylinder head to crack wouldn’t there was no evidence the car had This stated: “In affected cars, return hose from the turbo, cause the head to crack and leak overheated. localised overheating of the thereby lowering the temperature oil suddenly. Instead, it found the SUV had engine cylinder head, due to a of the coolant being returned to Rather, a crack in the cylinder a minor defect with its cooling lack of coolant circulation, could the degas bottle. head would start slowly in the system that a reasonable consumer cause the cylinder head to crack, The degas bottle and hose early stages and only be identified wouldn’t regard as acceptable causing an oil leak possibly would be replaced with materials with the very best non-destructive under the terms of the CGA. resulting in a fire in the engine better designed to withstand high testing equipment after the It added that after it was compartment.” temperatures to significantly reduce cylinder head was removed. repaired by Ford NZ, the cause for Repair work would occur in two the possibility of coolant loss. Ford NZ said Harcourt hadn’t concern about the cylinder head stages. However, parts were not Ford NZ’s field service inspected the Burnards’ Kuga and cracking or engine fires would be available so it was expected to start engineer, Ehrin Wardlow, said that had no factual basis on which to removed. in the second quarter of 2017. as long as coolant remained in comment on its performance. Ford NZ advised owners to the engine, there was no risk of The marque added Harcourt Order maintain proper engine coolant the cylinder head cracking or any hadn’t identified any specific The application was dismissed.

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

www.autofile.co.nz 31 Driving the Pacifi c

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A Palmerston North Masterton Wellington Nelson y 10,289xxxx Blenheim Greymouth Westport Christchurch Timaru 14,924xx Oamaru Dunedin Invercargill Whangarei Auckland 2016:2015: 9,722 8,517  xx5.8%% Hamilton Thames Tauranga Rotorua Gisborne 2015:2016: xxx12,762  xx 16.9% % Napier New Plymouth Wanganui Palmerston North N Masterton Wellington Nelson Blenheim Greymoutho Whangarei Auckland Hamilton Thames7 ve 1 m ber 20

Whangarei Thames NEW: 226 2016: 185  22.2% NEW: 98 2016: 75  30.7% USED: 327 2016: 295  10.8% USED: 158 2016: 103  53.4%

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Hamilton Rotorua NEW: 484 2016: 520  6.9% NEW: 149 2016: 73  104.1% USED: 907 2016: 805  12.7% USED: 230 2016: 156  47.4%

New Plymouth Gisborne NEW: 130 2016: 135  3.7% NEW: 36 2016: 49  26.5% USED: 204 2016: 199  2.5% USED: 93 2016: 64  45.3%

Wanganui Napier NEW: 87 2016: 68  27.9% NEW: 234 2016: 194  20.6% USED: 130 2016: 75  73.3% USED: 312 2016: 258  20.9% PORT TO DOOR SERVICE Palmerston North Masterton NEW: 222 2016: 220  0.9% NEW: 99 2016: 45  120.0% USED: 373 2016: 290  28.6% USED: 99 2016: 75  32.0% Our services include: Nelson Wellington NEW: 115 2016: 82  40.2% NEW: 702 2016: 597  17.6% NZ Customs clearance NZTA inspections USED: 309 2016: 243  27.2% USED: 1,003 2016: 895  12.1% Odometer verifi cation Westport Blenheim Insurance NEW: 1 2016: 1  0.0% NEW: 63 2016: 45  40.0% USED: 70 2016: 69  1.4% MPI inspections Delivery nationwide USED: 2 2016: 11  81.8% Greymouth Christchurch NEW: 17 2016: 8  112.5% NEW: 2,357 2016: 2,389  1.3% USED: 42 2016: 37  13.5% USED: 1,855 2016: 1,520  22.0% LATEST SCHEDULE Timaru Dream Angel Tokyo Car Carrera Lake Taupo Tokyo Car NEW: 67 2016: 63  6.3% Port Calls USED: 125 2016: 109  14.7% v1759 v1723 v1724 v1801 v1802 Oamaru Moji - - 15 Dec - 13 Jan NEW: 7 2016: 13  46.2% Osaka 6 Dec 3 Dec 16 Dec 2 Jan 15 Jan USED: 18 2016: 29  37.9% Nagoya - 4 Dec 17 Dec 3 Jan 16 Jan Dunedin

JAPAN NEW: 283 2016: 215  31.6% Toyohashi - - 18 Dec - 17 Jan USED: 442 2016: 385  14.8%

Yokohama 7 Dec 5 Dec 19 Dec 4 Jan 18 Jan Invercargill Auckland 20 Dec 20 Dec 5 Jan 20 Jan 5 Feb NEW: 116 2016: 102  13.7% Wellington 27 Dec 27 Dec 9 Jan 27 Jan 9 Feb USED: 208 2016: 136  52.9%

NZ Lyttelton 5 Jan 5 Jan 8 Jan 8 Feb 8 Feb Nelson 8 Jan 8 Jan 14 Jan 13 Feb 13 Feb Your Import Finance Specialists! YOUR FIRST CHOICE IN SHIPPING Flexible import and floorplan finance for dealers Proud sponsors of Streamline your buying, and your cashflow Phone (0800 276 2287) 0800 ARMACUP One finance facility / multiple suppliers - giving you the freedom to choose how and when you buy, ship, and comply. email [email protected] www.armacup.com Find out more: w blackbirdfinance.co.nz N 0800 000 999

www.autofile.co.nz 33 autoportalauctions.com

Imported Passenger Vehicle Sales by Make - November 2017 Imported Passenger Vehicle Sales by Model - November 2017

Nov '17 2017 YEAR 2017 Nov '17 2017 YEAR 2017 Make Nov '17 Nov '16 +/- % Make Model Nov '17 Nov '16 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Toyota 3,785 3,373 12.2 25.4% 38,075 25.1% Nissan Tiida 930 725 28.3 6.2% 6,743 4.4% Nissan 3,028 2,494 21.4 20.3% 28,415 18.7% Mazda Demio 704 496 41.9 4.7% 5,438 3.6% Mazda 2,402 1,914 25.5 16.1% 23,305 15.4% Mazda Axela 615 548 12.2 4.1% 6,727 4.4% Honda 1,347 1,261 6.8 9.0% 14,928 9.9% Suzuki Swift 589 440 33.9 3.9% 6,391 4.2% Subaru 809 593 36.4 5.4% 7,335 4.8% Honda Fit 525 429 22.4 3.5% 5,250 3.5% Suzuki 699 523 33.7 4.7% 7,482 4.9% Toyota Prius 393 283 38.9 2.6% 3,377 2.2% Bmw 546 517 5.6 3.7% 6,555 4.3% Subaru Legacy 391 288 35.8 2.6% 3,665 2.4% Mitsubishi 518 417 24.2 3.5% 5,387 3.6% Toyota Wish 385 305 26.2 2.6% 3,722 2.5% Volkswagen 459 436 5.3 3.1% 5,059 3.3% Toyota Vitz 365 299 22.1 2.4% 2,898 1.9% Audi 270 240 12.5 1.8% 2,977 2.0% Toyota Estima 324 217 49.3 2.2% 2,485 1.6% Mercedes-Benz 267 233 14.6 1.8% 3,149 2.1% Mazda Atenza 295 238 23.9 2.0% 3,324 2.2% Ford 111 150 -26.0 0.7% 1,222 0.8% Mitsubishi Outlander 294 199 47.7 2.0% 3,046 2.0% Lexus 75 65 15.4 0.5% 948 0.6% Volkswagen Golf 293 264 11.0 2.0% 3,107 2.1% Volvo 71 85 -16.5 0.5% 877 0.6% Nissan Leaf 246 68 261.8 1.6% 1,707 1.1% Holden 60 52 15.4 0.4% 644 0.4% Toyota Markx 236 214 10.3 1.6% 2,817 1.9% Land Rover 50 39 28.2 0.3% 560 0.4% Mazda Mpv 233 203 14.8 1.6% 2,350 1.6% Chevrolet 46 44 4.5 0.3% 597 0.4% Nissan Murano 207 143 44.8 1.4% 1,741 1.1% Jaguar 44 43 2.3 0.3% 518 0.3% Mazda Premacy 206 209 -1.4 1.4% 2,254 1.5% Mini 43 30 43.3 0.3% 464 0.3% Subaru Impreza 197 130 51.5 1.3% 1,663 1.1% Porsche 34 23 47.8 0.2% 373 0.2% Toyota Corolla 196 251 -21.9 1.3% 2,271 1.5% Jeep 32 18 77.8 0.2% 289 0.2% Nissan Dualis 190 190 0.0 1.3% 2,241 1.5% Dodge 28 32 -12.5 0.2% 292 0.2% Nissan Note 172 163 5.5 1.2% 1,966 1.3% Chrysler 23 10 130.0 0.2% 222 0.1% Honda Stream 162 112 44.6 1.1% 1,509 1.0% Peugeot 21 11 90.9 0.1% 167 0.1% Toyota Auris 161 184 -12.5 1.1% 1,886 1.2% Hyundai 20 28 -28.6 0.1% 352 0.2% Honda Odyssey 160 191 -16.2 1.1% 1,997 1.3% Renault 19 4 375.0 0.1% 150 0.1% Toyota Blade 158 143 10.5 1.1% 1,566 1.0% Pontiac 12 4 200.0 0.1% 49 0.0% Toyota Rav4 157 142 10.6 1.1% 1,628 1.1% Kia 10 10 0.0 0.1% 110 0.1% Nissan X-Trail 148 83 78.3 1.0% 1,450 1.0% Daihatsu 9 15 -40.0 0.1% 133 0.1% Mazda Verisa 134 83 61.4 0.9% 1,164 0.8% Maserati 7 9 -22.2 0.0% 119 0.1% Nissan Teana 130 106 22.6 0.9% 1,329 0.9% Cadillac 5 4 25.0 0.0% 58 0.0% Honda Crv 123 103 19.4 0.8% 1,323 0.9% Ferrari 5 4 25.0 0.0% 34 0.0% Nissan Skyline 122 110 10.9 0.8% 1,495 1.0% Fiat 5 4 25.0 0.0% 36 0.0% Toyota Alphard 119 91 30.8 0.8% 1,235 0.8% Lincoln 5 3 66.7 0.0% 21 0.0% Nissan Bluebird 119 131 -9.2 0.8% 1,639 1.1% Plymouth 5 4 25.0 0.0% 33 0.0% Nissan March 114 125 -8.8 0.8% 1,193 0.8% Others 54 70 -22.9 0.4% 617 0.4% Others 5,131 4,856 5.7 34.4% 56,955 37.6% Total 14,924 12,762 16.9 100.0% 151,552 100.0% Total 14,924 12,762 16.9 100.0% 151,552 100.0% A wide range of quality vehicles All inclusive gst invoice in $nz AvAilAble autoportalauctions.com CREW with PASSION NZ office - contact Tada: 09-571-2063 or 0800-428-2728

34.autofile www.co.nz www.heiwa-auto.co.nz Used sales to smash record ith 2017 drawing before Christmas and then most of down here,” he adds. “It’s a different strong hold on third with a 15.4 to a close, first-time the car yards close for about two lifestyle in Dunedin.” per cent share of the market. It sold registrations of weeks over the holiday period. Mike Farmer, group managing 2,402 units, which represented an importedW used cars have already “A good proportion of dealers director of Farmer Autovillage in increase of 25.5 per cent on the beaten last year’s total by 2,026 units. will still work from their phones Mount Maunganui, says this year same month of last year. Even a poor sales month in and the internet. Most big yards has been solid overall with most Nissan’s Tiida is back at the top December will see a new record will be open, but they don’t want brands performing strong. of the models’ ladder with 930 year set by beating 2003’s total of stock that’s not yard-ready.” “Used car sales have increased registrations – up by a substantial 156,972. Lloyd Wilson, owner of Lloyd over the year,” he says. “During the 28.3 per cent on 725 sales in Year to date, there have been Wilson Motors in Dunedin, period after the election when November 2016. 151,552 used imported passenger describes 2017 as a solid year. the new government was being The Mazda Demio jumped vehicles registered, which is an “The only bit that caught us out formed, there was some buyer from fourth to second – up by a 11.2 per cent increase on the was the post-election period,” he uncertainty.” massive 41.9 per cent with 704 same period of last year when says. “We were in limbo while the Back to the last month’s sales compared to 496 in the 136,345 units were sold. The total new government formed. statistics and Toyota again took same month of last year. Its Axela is also 2,026 units ahead of 2016’s “We sell a range of cars – the biggest slice of year-to-date fell from first to third with 615 aggregate of 149,526. makes and models vary, and it’s market share with 25.1 per cent on units sold, which was a jump of November’s sales of 14,924 all price-driven. There are no the back of 38,075 registrations. 12.2 per cent. made for the best month ever for buyer trends for vehicles these The marque sold 3,785 units in The Tiida and Axela are neck used imports by surpassing March days. We cater for a diverse November – up by 12.2 per cent on and neck with 4.4 per cent of the 2004’s record of 14,877 and July market and there’s always the same month of last year. market share year to date, while 2003’s total of 14,709. demand for four-wheel drives.” Nissan came in second with an Suzuki’s Swift has 4.2 per cent. Last month was also up by Wilson says local buyers are keen 18.7 per cent year-to-date share of Once again, the Nissan Leaf 16.9 per cent compared to the on Ford pick-up trucks, utes and the market on 28,415 units. It sold was a sales star for the month same month of 2016. And total SUVs for towing, while there’s no 3,028 units last month, which was with 246 registrations, an increase registrations of new and imported longer a lot of demand for Falcons up a healthy increase of 21.4 per of 261.8 per cent on 68 units in used cars are only 164 units and Commodores for this. cent on November 2016. November 2016. behind the best year on record “Houses are still selling fast Mazda continues to have a Other stand-out models for the with a month to go. The year-to- month included Nissan’s X-Trail, date total comes in at 252,009 Used Imported Passenger Registrations - 2014-2017 which jumped by 78.3 per cent, compared to 252,173 in 2016. the Subaru Impreza, up by 51.5 per Nick Owens, owner of Auto 15,500 cent and Mitsubishi’s Outlander, Inspection Services in Christchurch, 15,000 which climbed by 47.7 per cent. expected a slowdown in business 14,500 Nineteen of the country’s 22 during the year, but it never 14,000 regions experienced a positive happened and reports trade is 13,500 lift in sales compared to the same doing well. He says several new 13,000 month last year. dealerships have recently opened 12,500 Wanganui experienced a huge 12,000 in the city. month – up by 73.3 per cent from 11,500 “Business is consistent and we’re 75 sales in November 2016 to 130 11,000 getting back to pre-earthquake last month. 10,500 levels,” Owens told Autofile. Thames also performed well. 10,000 2014 “There is always a pre-Christmas 2015 Sales there rose by 53.4 per 9,500 2016 2017 rush. If people want to change their 9,000 cent to 158, while Invercargill car, they will do so before Christmas. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec increased by 52.9 per cent with “Normally we get a rush here 208 registrations. chOice www.heiwa-auctions.com 100,000 vehicles per month contact: Kei Mikuriya [email protected]

www.autofile.co.nz 35 www.mmnz.biz No brakes on imports boom his year’s boom in used last month, while imports from 29.4 per cent fall compared to the luck than science. “We are cautious passenger vehicles crossing Australia and the UK fell. same month of last year. So far in and keep a wide range of stock.” the border has continued There were 13,709 used 2017, importers have brought in Nick Owens, of Auto Inspection inT the build-up to Christmas with passenger vehicles imported from 2,031 units from the UK. Services in Christchurch, has noticed 14,642 units imported last month. Japan in November – a 10.2 per Singapore was up by 27.9 per a drop-off in stock volumes coming The year-to-date total now stands cent increase on the same month cent compared to November 2016 into the country from the UK. at 158,469, which is 5,793 units of 2016 for a monthly market share with 142 units and it has a year- “We saw a lot of near-new ahead of overall imports of used cars of 93.6 per cent. to-date total of 1,098 units. There stock earlier in the year from for 2016 when 152,676 arrived. Importers brought in 389 used were 164 imports from the US the UK, but not a lot in the past However, imports of used light cars from Australia – a 4.9 per cent – up by 7.9 per cent on the same few months,” he told Autofile. commercial vehicles dropped decrease on November 2016 and month last year. “We don’t see a lot of cars from significantly – down by 12.3 down by 228 units from the year’s Lloyd Wilson, owner of Lloyd Australia. Most of the buyers per cent on the same month of high of 617 in March. Year to date, Wilson Motors in Dunedin, says dealing with Australian imports last year and by 9.3 per cent on 5,110 units have been shipped different makes and models come are specialising in that stuff. October’s 712 units. from across the ditch. up for auction in Japan in cycles as “We should see more people Used car dealers continued A total of 197 cars were manufacturers release new models movers and other vehicles that to tap into Japan’s vast second- imported from the UK during for the domestic market. don’t have electronic stability hand market to stock their yards November. This was a significant He says stocking the yard is more control come in before March.”

Used imported passenger vehicle arrivals

20,000 19,000 18,000 17,000 16,000 15,000 14,000 13,000 12,000 11,000 2 017 10,000 2015 2016 9,000 2014 8,000 7,000 6,000 4,000 2013 JAN FEB MAR APR MAY JUN JUL Aug Sept Oct Nov Dec

Used Imported Passenger Vehicles By Country Of Export

Country of 2017 2016 Export JAN ’17 Feb ’17 Mar ’17 Apr ’17 May ’17 Jun ’17 Jul ’17 Aug ’17 Sep ’17 Oct ’17 nov ’17 nov Share % 2017 Total 2016 TOTAL MRkt Share Australia 382 530 617 431 508 475 450 531 363 434 389 2.7% 5,110 5,151 3.4% Great Britain 273 173 241 152 190 143 133 190 163 176 197 1.3% 2,031 1,537 1.0% Japan 9,697 12,924 18,426 12,274 15,649 14,566 13,209 11,419 12,688 13,983 13,709 93.6% 148,544 143,080 93.7% Singapore 47 81 97 54 87 183 120 123 53 111 142 1.0% 1,098 1,231 0.8% Usa 156 100 135 82 119 108 107 119 115 124 164 1.1% 1,329 1,275 0.8% Other countries 28 21 30 24 31 55 36 34 19 38 41 0.3% 357 438 0.3% Total 10,583 13,829 19,546 13,017 16,584 15,530 14,055 12,416 13,401 14,866 14,642 100.0% 158,469 152,712 100.0% 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 Electric vehicles in high demand ealers are “crying out” But he warns there may not be There were 18,573 of those came third with a 25.9 per cent for second-hand electric enough second-hand EVs available registrations last month for a 1.6 per increase with 214 sales. vehicles (EVs), according to meet buyer demand, which “will cent increase compared to 18,277 Auckland, the country’s largest toD Nick Owens, of Auto Inspection drive up retail prices to what people sales in November 2016. market, was more stable notching Services in Christchurch. are prepared to pay”. Public-to-public registrations up a 1.1 per cent increase in “At the moment we are inspecting “About 25 per cent of used cars plateaued last month with 43,369 trader-to-public sales – 6,449 units about 10 electric cars,” he says. “The will not make a profit, so you have to units changing hands – a 0.5 increase compared to 6,381. increased demand will be restricted be on your game all the time,” says on November 2016’s 43,139 units. Dealers in Rotorua accepted by supply and that will push up prices John Moyes, of Moyes Motor Group There was a 4.5 per cent increase 71.6 per cent more trade-ins probably by one to two grand more. in Panmure, Auckland. in trade-ins with dealers buying during November than during the “The Nissan Leaf we have at work He says the internet makes it 13,293 cars compared to 12,717 in same month last year – 187 units would have saved us about $2,000 in easier to check what’s selling. “You the same month last year. compared to 109. annual running costs.” can get a rough idea of price. It Wanganui had a 34 per cent Masterton was close behind with Owens says the UK and Japan makes it a little easier than it was.” increase in dealer-to-public sales with a 61.7 per cent jump in public-to- are the main markets for used EVs Dealer-to-public sales 260 compared to 194 in November dealer sales with 131 while there due to their government subsidies, of second-hand cars during 2016. Rotorua was second with a were 109 in November 2016. Thames which make used Leafs “great November were up slightly on the 27.4 per cent jump with 404 units was third with a 40.4 per cent rise to value” for Kiwi buyers. same month of last year. compared to 317, while Masterton 139 units compared to 99.

Secondhand car sales - November 2017

Dealer To Public Public To Public Public To Dealer Nov '17 Nov '16 +/- % MarKET SHARE Nov '17 Nov '16 +/- % Nov '17 Nov '16 +/- % Whangarei 621 619 0.3 3.34 1,975 2,065 -4.4 277 281 -1.4 Auckland 6,449 6,381 1.1 34.72 14,745 15,216 -3.1 5,010 4,888 2.5 Hamilton 1,404 1,476 -4.9 7.56 3,206 3,413 -6.1 1,036 1,092 -5.1 Thames 303 262 15.6 1.63 731 621 17.7 139 99 40.4 Tauranga 872 984 -11.4 4.69 2,060 2,247 -8.3 534 606 -11.9 Rotorua 404 317 27.4 2.18 1,081 993 8.9 187 109 71.6 Gisborne 180 165 9.1 0.97 381 390 -2.3 81 80 1.3 Napier 673 559 20.4 3.62 1,573 1,432 9.8 489 411 19.0 New Plymouth 402 375 7.2 2.16 946 967 -2.2 201 202 -0.5 Wanganui 260 194 34.0 1.40 674 538 25.3 175 130 34.6 Palmerston North 813 776 4.8 4.38 1,564 1,541 1.5 776 612 26.8 Masterton 214 170 25.9 1.15 530 427 24.1 131 81 61.7 Wellington 1,565 1,550 1.0 8.43 3,120 2,988 4.4 1,146 1,110 3.2 Nelson 351 310 13.2 1.89 1,124 1,038 8.3 233 200 16.5 Blenheim 187 182 2.7 1.01 452 422 7.1 82 105 -21.9 Greymouth 55 76 -27.6 0.30 146 184 -20.7 23 42 -45.2 Westport 8 22 -63.6 0.04 36 68 -47.1 0 0 0.0 Christchurch 2,376 2,451 -3.1 12.79 5,154 4,895 5.3 1,880 1,804 4.2 Timaru 214 233 -8.2 1.15 544 538 1.1 156 139 12.2 Oamaru 41 51 -19.6 0.22 119 153 -22.2 2 14 -85.7 Dunedin 716 706 1.4 3.86 2,047 2,013 1.7 438 437 0.2 Invercargill 465 418 11.2 2.50 1,161 990 17.3 297 275 8.0 NZ total 18,573 18,277 1.6 100.00 43,369 43,139 0.5 13,293 12,717 4.5

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www.autofile.co.nz 37 New Passenger Vehicle Sales by Make - November 2017 New Passenger Vehicle Sales by Model - November 2017

Nov '17 2017 YEAR 2017 Nov '17 2017 YEAR 2017 Make Nov '17 Nov '16 +/- % Make Model Nov '17 Nov '16 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Toyota 2,358 1,541 53.0 22.9% 18,522 18.4% Toyota Corolla 814 581 40.1 7.9% 6,685 6.7%

Holden 1,149 1,169 -1.7 11.2% 9,040 9.0% Toyota Rav4 648 234 176.9 6.3% 4,119 4.1%

Mazda 904 832 8.7 8.8% 9,282 9.2% Toyota Highlander 445 105 323.8 4.3% 2,548 2.5%

Mitsubishi 710 643 10.4 6.9% 6,730 6.7% Mazda Cx-5 385 264 45.8 3.7% 3,010 3.0%

Hyundai 637 691 -7.8 6.2% 6,564 6.5% Mitsubishi Asx 302 165 83.0 2.9% 2,155 2.1%

Ford 603 650 -7.2 5.9% 6,269 6.2% Honda Crv 238 42 466.7 2.3% 842 0.8%

Suzuki 491 479 2.5 4.8% 6,450 6.4% Mitsubishi Outlander 227 272 -16.5 2.2% 2,687 2.7%

Kia 489 531 -7.9 4.8% 6,244 6.2% Hyundai Kona 218 0 21800.0 2.1% 296 0.3%

Nissan 440 506 -13.0 4.3% 4,442 4.4% Kia Sportage 215 352 -38.9 2.1% 3,400 3.4%

Honda 414 351 17.9 4.0% 4,261 4.2% Nissan Qashqai 212 155 36.8 2.1% 1,847 1.8%

Subaru 312 231 35.1 3.0% 3,168 3.2% Holden Captiva 204 330 -38.2 2.0% 2,024 2.0%

Volkswagen 280 338 -17.2 2.7% 3,872 3.9% Suzuki Swift 196 238 -17.6 1.9% 2,231 2.2%

Mercedes-Benz 231 205 12.7 2.2% 2,347 2.3% Holden Barina 184 232 -20.7 1.8% 920 0.9%

Audi 163 187 -12.8 1.6% 1,916 1.9% Hyundai Tucson 184 381 -51.7 1.8% 2,111 2.1%

Bmw 161 185 -13.0 1.6% 1,818 1.8% Holden Commodore 176 187 -5.9 1.7% 2,064 2.1%

Land Rover 117 93 25.8 1.1% 1,102 1.1% Nissan X-Trail 167 223 -25.1 1.6% 1,685 1.7%

Jeep 116 238 -51.3 1.1% 1,092 1.1% Holden Astra 164 0 16400.0 1.6% 785 0.8%

Skoda 106 114 -7.0 1.0% 1,202 1.2% Ford Escape 164 0 16400.0 1.6% 1,604 1.6%

Peugeot 80 61 31.1 0.8% 716 0.7% Ford Focus 156 96 62.5 1.5% 1,526 1.5%

Lexus 65 65 0.0 0.6% 646 0.6% Holden Trax 149 217 -31.3 1.4% 1,210 1.2%

Ssangyong 60 248 -75.8 0.6% 780 0.8% Toyota Yaris 147 242 -39.3 1.4% 1,787 1.8%

Volvo 52 50 4.0 0.5% 494 0.5% Mazda Mazda3 146 162 -9.9 1.4% 1,825 1.8%

Jaguar 48 33 45.5 0.5% 334 0.3% Subaru Xv 137 33 315.2 1.3% 624 0.6%

Mini 44 65 -32.3 0.4% 635 0.6% Mazda Cx-3 128 116 10.3 1.2% 1,395 1.4%

Dodge 33 28 17.9 0.3% 257 0.3% Holden Trailblazer 114 30 280.0 1.1% 556 0.6%

Citroen 28 14 100.0 0.3% 224 0.2% Kia Carnival 108 56 92.9 1.0% 316 0.3%

Tesla 28 0 2800.0 0.3% 223 0.2% Ford Everest 108 92 17.4 1.0% 634 0.6%

Porsche 27 28 -3.6 0.3% 340 0.3% Hyundai Santa Fe 103 146 -29.5 1.0% 1,517 1.5%

Haval 25 0 2500.0 0.2% 59 0.1% Mazda Cx-9 99 111 -10.8 1.0% 1,122 1.1%

Ldv 15 4 275.0 0.1% 45 0.0% Suzuki Vitara 96 128 -25.0 0.9% 1,365 1.4%

Fiat 14 9 55.6 0.1% 190 0.2% Subaru Outback 94 109 -13.8 0.9% 1,378 1.4%

Isuzu 14 23 -39.1 0.1% 253 0.3% Honda Hr-V 93 130 -28.5 0.9% 1,353 1.3%

Renault 14 58 -75.9 0.1% 223 0.2% Volkswagen Tiguan 93 108 -13.9 0.9% 1,825 1.8%

Maserati 9 4 125.0 0.1% 129 0.1% Mazda Mazda2 91 116 -21.6 0.9% 1,131 1.1%

Bentley 8 4 100.0 0.1% 44 0.0% Toyota L’cruiser Prado 87 89 -2.2 0.8% 776 0.8%

Others 44 44 0.0 0.4% 544 0.5% Others 3,197 3,980 -19.7 31.1% 39,104 38.9%

Total 10,289 9,722 5.8 100.0% 100,457 100.0% Total 10,289 9,722 5.8 100.0% 100,457 100.0%

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships November 2017 ( vs October 2017) S S Web - Dealer 6.2% Web - Dealer 12.3% S Web - Dealer 6.7% T E E D S V

Brand Brand L Referral A 1.7% I 39.2% 124.9% E A R E

L Web - Classified 5.1% T D Web - Classified 19.3% S Direct 44.1% Smart Digital Tools

38 www.autofile.co.nz Sales race ahead New Passenger Registrations - 2015-2017 11,000 egistrations of new with 149 registrations compared to

passenger vehicles in 73 – up by 104 per cent. 10,000 2017 have stormed ahead Toyota continues to hold the Rof 2016. Year to date, 100,457 biggest chunk of market share with 9,000 have been sold – 5,882 more than 18.4 per cent thanks to year-to- during the same 11-month period date sales of 18,522. It’s followed by last year when 94,575 had been Mazda on 9.2 per cent and Holden 8,000 registered. on nine per cent. During November, 10,289 new Toyota has its grip on the top 7,000 2015 cars were sold – up by 5.8 per cent three places in the models’ ladder. 2016 on the same month of 2016 when The Corolla kept its top spot with 2017 6,000 the total was 9,722 units. a 40.1 per cent increase in sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Registrations were up in 17 of to 814 units compared to 581 in the country’s 22 regions during last November 2016. was third with a massive 323.8 per compared to 42 last November. month. They climbed by by 120 per The RAV4 was second on 648 cent increase on 2016 with 445 Hyundai’s Kona all-new compact cent in Masterton from 45 units in units – jumping a remarkable 176.9 units compared to 105. SUV is also proving it’s a force to November 2016 to 99 last month. per cent on 234 sales in the same Honda’s CRV saw a 466.7 per be reckoned with by securing 218 Rotorua also had a good month month of last year. The Highlander cent boom in sales – 238 last month registrations last month.

NEW VEHICLE SALES BY BUYER TYPE - November 2017 NEW VEHICLE MARKET SEGMENTATION - November 2017

Nov '17 Nov '16 Mth % 2017 YTD 2016 YTD % YTD Nov '17 Nov '16 Mth% diff 2017 YTD 2016 YTD % YTD Passenger 3,730 4,119 -9.4 41,598 45,480 -8.5 Passenger 3,730 4,119 -9.4 41,598 45,480 -8.5 Private 1,053 1,340 -21.4 14,967 17,323 -13.6 SUV 6,508 5,574 16.8 58,191 48,599 19.7 Business 1,288 1,551 -17.0 16,480 18,559 -11.2 Light Commercial 3,680 3,421 7.6 41,379 35,582 16.3 Gov’t 132 95 38.9 1,749 1,933 -9.5 Heavy Commercial 486 410 18.5 5,458 4,523 20.7 Rental 1,257 1,133 10.9 8,402 7,665 9.6 Other 190 202 -5.9 1,709 1,328 28.7 Total Market 14,594 13,726 6.3 148,335 135,512 9.5 SUV 6,508 5,574 16.8 58,191 48,599 19.7 Private 2,504 1,832 36.7 25,394 20,025 26.8 Micro 76 164 -53.7 1,552 1,973 -21.3 Business 2,268 1,963 15.5 23,628 20,578 14.8 Light 972 1,344 -27.7 11,571 12,687 -8.8 Gov’t 90 81 11.1 922 786 17.3 Small 1,757 1,486 18.2 17,625 17,355 1.6 Rental 1,646 1,698 -3.1 8,247 7,210 14.4 Medium 335 548 -38.9 5,135 6,675 -23.1 Large 263 268 -1.9 2,991 3,759 -20.4 Light Commercial 3,680 3,421 7.6 41,379 35,582 16.3 Upper Large 10 11 -9.1 107 180 -40.6 Private 876 757 15.7 10,105 8,673 16.5 People Movers 183 116 57.8 918 897 2.3 Business 2,308 2,200 4.9 27,900 24,053 16.0 Sports 134 182 -26.4 1,699 1,954 -13.1 Gov’t 165 147 12.2 1,556 1,249 24.6 SUV Small 1,804 1,481 21.8 15,928 12,738 25.0 Rental 331 317 4.4 1,818 1,607 13.1 SUV Medium 2,785 2,284 21.9 24,462 19,597 24.8 Sub Total 13,918 13,114 6.1 141,168 129,661 8.9 SUV Large 1,811 1,762 2.8 16,945 15,689 8.0 Private 4,433 3,929 12.8 50,466 46,021 9.7 SUV Upper Large 108 47 129.8 856 575 48.9 Business 5,864 5,714 2.6 68,008 63,190 7.6 Light Buses 103 113 -8.8 980 759 29.1 Gov’t 387 323 19.8 4,227 3,968 6.5 Vans 584 606 -3.6 5,977 5,457 9.5 Rental 3,234 3,148 2.7 18,467 16,482 12.0 Pick Up/Chassis Cab 4x2 1,087 1,075 1.1 13,732 12,303 11.6 Heavy Commercial 486 410 18.5 5,458 4,523 20.7 Pick Up/Chassis Cab 4x4 1,906 1,627 17.1 20,690 17,063 21.3 Heavy Commercial 486 410 18.5 5,458 4,523 20.7 Other 190 202 -5.9 1,709 1,328 28.7 Other 190 202 -5.9 1,709 1,328 28.7 Total 14,594 13,726 6.3 148,335 135,512 9.5 Total Market 14,594 13,726 6.3 148,335 135,512 9.5

Top 3 Sources for Leads, Test Drives and Sales - New Zealand Dealerships November 2017 ( vs October 2017) S S Web - Dealer 6.2% Web - Dealer 12.3% S Web - Dealer 6.7% T E E D S V

Brand Brand L Referral A 1.7% I 39.2% 124.9% E A R E

L Web - Classified 5.1% T D Web - Classified 19.3% S Direct 44.1% Smart Digital Tools

www.autofile.co.nz 39 Construction may hit sales ooming building activity constraints will help spread light New Commercial Sales - 2015-2017 over the past five years 6,000 commercial growth more evenly 2015 has helped to drive over the next five years. 5,500 2016 Bdemand for commercial vehicles 2017 “However, we still expect – especially light commercials. 5,000 light commercial sales to slide Infometrics says when it factors from mid-2020. Construction 4,500 in construction activity against activity and economic growth are sales of light commercials there’s a 4,000 expected to ease in the latter part close link between the two. of our five-year forecast period. 3,500 Downward revisions to “We’ve had a huge run in building work shave more than 3,000 construction-related sales over the 8,000 light commercial vehicle 2,500 past five years, bolstered initially sales – or 3.8 per cent – off its Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec by Christchurch’s rebuild and forecasts over the next five years an expanding population. This with most likely to take place people – may create reduced months to June 2022, more light growth will eventually subside.” between 2019 and 2021. demand for trucks and vans during commercials will be sold. Sales of new commercials Capacity constraints mean in the three years to 2021. “Because construction is unlikely increased by 7.1 per cent companies are unlikely to build as “The effect reverses out in to meet demand over the next four during November – 4,305 units much as previously thought, so the final year of our forecasts,” years, there will be more work left compared to 4,018 in the same this – and limits on available trades says Infometrics. “Over the 12 for 2021/22 and beyond. In a sense, month of last year.

New Commercial Sales by Make - November 2017 New Commercial Sales by Model - November 2017

Nov '17 2017 YEAR 2017 Nov '17 2017 YEAR 2017 Make Nov '17 Nov '16 +/- % Make Model Nov '17 Nov '16 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Ford 943 839 12.4 21.9% 9,712 20.2% Ford Ranger 874 777 12.5 20.3% 8,833 18.4% Toyota 869 739 17.6 20.2% 10,810 22.5% Toyota Hilux 620 483 28.4 14.4% 7,680 16.0% Holden 340 410 -17.1 7.9% 4,264 8.9% Mitsubishi Triton 339 263 28.9 7.9% 3,791 7.9% Mitsubishi 339 263 28.9 7.9% 3,793 7.9% Holden Colorado 323 388 -16.8 7.5% 4,062 8.4% Isuzu 319 356 -10.4 7.4% 3,540 7.4% Toyota Hiace 207 235 -11.9 4.8% 2,829 5.9% Nissan 193 231 -16.5 4.5% 2,873 6.0% Isuzu D-Max 206 221 -6.8 4.8% 2,360 4.9% Mazda 188 137 37.2 4.4% 2,079 4.3% Nissan Navara 193 231 -16.5 4.5% 2,871 6.0% Mercedes-Benz 162 129 25.6 3.8% 1,073 2.2% Mazda Bt-50 187 137 36.5 4.3% 2,077 4.3% Volkswagen 148 98 51.0 3.4% 1,453 3.0% Mercedes-Benz Sprinter 140 122 14.8 3.3% 831 1.7% Ldv 144 121 19.0 3.3% 1,157 2.4% Fiat Ducato 129 75 72.0 3.0% 985 2.0% Fiat 130 79 64.6 3.0% 1,011 2.1% Ford Transit 69 62 11.3 1.6% 875 1.8% Fuso 60 0 6000.0 1.4% 746 1.6% Ldv V80 64 68 -5.9 1.5% 615 1.3% Foton 59 46 28.3 1.4% 647 1.3% Volkswagen Amarok 59 57 3.5 1.4% 855 1.8% Hino 56 37 51.4 1.3% 608 1.3% Volkswagen T6 55 22 150.0 1.3% 301 0.6% Renault 53 34 55.9 1.2% 174 0.4% Renault Master Van 50 31 61.3 1.2% 124 0.3% Hyundai 38 117 -67.5 0.9% 852 1.8% Ldv T60 50 0 5000.0 1.2% 152 0.3% Volvo 34 16 112.5 0.8% 353 0.7% Foton Tunland 49 36 36.1 1.1% 575 1.2% Ud Trucks 32 23 39.1 0.7% 249 0.5% Isuzu F Series 47 46 2.2 1.1% 502 1.0% Kenworth 31 13 138.5 0.7% 221 0.5% Toyota Landcruiser 42 21 100.0 1.0% 300 0.6% Iveco 29 29 0.0 0.7% 244 0.5% Isuzu N Series 41 64 -35.9 1.0% 436 0.9% Others 138 301 -54.2 3.2% 2,228 4.6% Others 561 679 -17.4 13.0% 7,033 14.6% Total 4,305 4,018 7.1 100.0% 48,087 100.0% Total 4,305 4,018 7.1 100.0% 48,087 100.0%

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40 www.autofile.co.nz Tough competition at auctions ovember was another of 2017’s used commercial market. Used Commercial Sales - 2015-2017 positive month for used 1,300 There were 382 of the vans commercials with the registered during November – up Nsector showing a healthy increase in 1,200 by 9.2 per cent on 349 units in registrations. 1,100 November 2016 – and adding to the There were 1,165 sales to make 4,164 that have been sold during the 1,000 it the second largest month of 2017 2015 past 11 months for a 34.7 per cent behind March when 1,249 were 900 2016 share of the year-to-date market. retailed. It was also an increase on 2017 Nissan’s Caravan was second 800 the same month of last year when with 75 sales, down by 8.5 per cent there were 1,144 registrations. 700 on November last year, while Fiat’s Year to date, 11,988 used Ducato was third on 62 units for a 600 commercial vehicles have been drop of 22.5 per cent. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec registered – up by 9.3 per cent on Nissan was second behind Toyota 2016’s total sales of 10,967. dealers at auctions,” he explains. “We Mike Farmer, of Farmer on the brand leaders’ board with 249 Gareth Karrasch, director of have the yard about 80 per cent Autovillage in Mount Maunganui, sales in November. This was up by 3.8 Autobiz, which operates yards in full and mostly we’re well-stocked. told Autofile that second-hand utes per cent on the same month last year Papatoetoe and Takanini, says it’s Preparation for sale takes a while. We are continuing to hold their value. for a 21.5 per cent market share. difficult to get commercial stock. pick up trade-ins with 2008s to 2012s Last month’s sales of Hiaces have Isuzu was third – up by 27.8 per “We are competing with other in pretty good condition.” driven Toyota to a 46.2 per cent share cent with 69 sales.

Used Commercial Sales by Make - November 2017 Used Commercial Sales by Model - November 2017

Nov '17 2017 YEAR 2017 Nov '17 2017 YEAR 2017 Make Nov '17 Nov '16 +/- % Make Model Nov '17 Nov '16 +/- % Mkt Share TO DATE Mkt share Mkt Share TO DATE Mkt share Toyota 498 474 5.1 42.7% 5,536 46.2% Toyota Hiace 382 349 9.5 32.8% 4,164 34.7% Nissan 249 240 3.8 21.4% 2,577 21.5% Nissan Caravan 75 82 -8.5 6.4% 893 7.4% Isuzu 69 54 27.8 5.9% 629 5.2% Fiat Ducato 62 80 -22.5 5.3% 151 1.3% Mazda 65 93 -30.1 5.6% 819 6.8% Mazda Bongo 56 79 -29.1 4.8% 681 5.7% Fiat 63 84 -25.0 5.4% 153 1.3% Nissan Nv200 48 51 -5.9 4.1% 439 3.7% Mitsubishi 45 31 45.2 3.9% 435 3.6% Toyota Regius 41 42 -2.4 3.5% 497 4.1% Ford 41 34 20.6 3.5% 447 3.7% Nissan Vanette 37 50 -26.0 3.2% 415 3.5% Hino 32 33 -3.0 2.7% 324 2.7% Isuzu Elf 35 33 6.1 3.0% 346 2.9% Chevrolet 20 18 11.1 1.7% 228 1.9% Nissan Nv350 28 13 115.4 2.4% 201 1.7% Holden 18 25 -28.0 1.5% 223 1.9% Toyota Dyna 24 32 -25.0 2.1% 315 2.6% Dodge 8 6 33.3 0.7% 60 0.5% Mitsubishi Canter 22 19 15.8 1.9% 213 1.8% Mercedes-Benz 8 6 33.3 0.7% 68 0.6% Nissan Navara 21 15 40.0 1.8% 212 1.8% Volkswagen 6 8 -25.0 0.5% 81 0.7% Isuzu Forward 20 11 81.8 1.7% 164 1.4% Suzuki 5 2 150.0 0.4% 29 0.2% Nissan Atlas 19 19 0.0 1.6% 222 1.9% Gmc 4 5 -20.0 0.3% 46 0.4% Hino Dutro 18 18 0.0 1.5% 164 1.4% Renault 4 2 100.0 0.3% 27 0.2% Toyota Hilux 17 19 -10.5 1.5% 181 1.5% Kenworth 3 2 50.0 0.3% 28 0.2% Toyota Toyoace 14 14 0.0 1.2% 192 1.6% Land Rover 3 0 300.0 0.3% 16 0.1% Ford Ranger 11 19 -42.1 0.9% 159 1.3% Mitsubishi Fuso 3 1 200.0 0.3% 29 0.2% Hino Ranger 10 12 -16.7 0.9% 159 1.3% Man 2 2 0.0 0.2% 9 0.1% Chevrolet Silverado 10 9 11.1 0.9% 101 0.8% Others 19 24 -20.8 1.6% 224 1.9% Others 215 178 20.8 18.5% 2,119 17.7% Total 1,165 1,144 1.8 100.0% 11,988 100.0% Total 1,165 1,144 1.8 100.0% 11,988 100.0%

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www.autofile.co.nz 41 Positive signs for next year lthough dealers have sold subtracted from November’s depended on the state of the director of Farmer Autovillage in 5,882 more new cars in the import total. Despite this small economy. Mount Maunganui, predicts next past 11 months than in the stock decrease, November’s “We would reduce stock during year’s market will be a repeat of 2017. sameA period last year, the amount of unsold stock total was 10.1 a downturn,” he told Autofile. “We “I don’t see any massive unsold stock remains high. per cent per cent higher when tended to advertise a lot so we growth during 2018, it will be There’s now just under eight compared to the same month never had a bad year. But we never similar to 2017,” he says. “A lot months’ supply – 70,616 units last year, which had 64,165 took big risks. Business was always of new sales are driven from a – of new car stock sitting in unregistered units. up and down. product launch. distributor or dealership yards Year to date, 105,152 new “I think 2018 will be okay for “Our volumes of new cars if the average daily sales figure cars have crossed the border and the industry. New Zealand is are high. We do buy used cars remains at 297. 100,457 have been sold leaving a going well and it will be a good externally, but we get good There were 9,825 new cars variance of 4,695. year for new car sales. There’s trade-ins. imported into New Zealand Dealers throughout the nothing showing that things will “The change with electric during November, an 11.2 per country have 237 days’ worth slow down. I think it will keep on vehicles will be monumental to cent decrease on the same month of stock on hand. This is 14 days rolling, the city is growing and the industry. Getting enough of last year, which saw 11,059 units fewer than the year’s high of 251 people need cars.” them is a challenge for everyone. imported. This was down by 6.2 days – just over eight months – Moyes says red was the most “As with any new technology, per cent on October’s 10,473 units. in August and only seven days popular colour with his Holden it will end up being an avalanche Dealers registered 10,289 new higher than in November last year. customers during the past 30 years, at some point, but it’s hard to say passenger vehicles last month – a John Moyes, the managing although blue was also reasonably when that will happen. As the 5.8 per cent increase on the same director of Auckland’s Moyes popular. “We tried to figure out product becomes mainstream, month last year, but a 7.4 per cent Motor Group, which is shutting the popular Kiwi colour choices to buyer demand will take off. We decrease on October 2017. up shop after 30 years, says decide what we should be buying. will be prepared and our team Unsold stock dropped by stocking the dealership was White was popular for a while.” will be skilled to deal with the 464 when the sales total was always difficult to get right and Mike Farmer, group managing technology.”

Dealer stock of new cars in New Zealand Days stock in NZ - new Cars

CAR Sales DAILY SALES Days Variance Stock - 12-MONTH stock 260 Imported Registered AVERAGE at hand November 2016 — November 2017

Nov ‘16 11,059 9,722 1,337 64,165 279 230 240 Dec ‘16 9,825 8,069 1,756 65,921 281 234 Jan ‘17 8,489 10,150 -1,661 64,260 285 226 220 Feb ‘17 8,099 8,050 49 64,309 287 224 Mar ‘17 200 9,200 9,230 -30 64,279 290 222 November 2015 — November 2016 Apr ‘17 8,234 6,996 1,238 65,517 290 226 180 May ‘17 9,539 8,386 1,153 66,670 293 228 Jun ‘17 10,483 10,181 302 66,972 296 227 160 Jul ‘17 12,591 7,605 4,986 71,958 295 244 Aug ‘17 10,599 8,606 1,993 73,951 295 251 140 Sep ‘17 7,620 9,855 -2,235 71,716 295 243 of stock Days

Oct ‘17 10,473 11,109 -636 71,080 296 240 120 Nov ‘17 9,825 10,289 -464 70,616 297 237

Year to date 105,152 100,457 4,695 100 Change on last month -6.2% -7.4% -0.7% 0 v g

Change on Nov 2016 -11.2% 5.8% 10.1% ay o ct S ep J ul F eb N o A pr D e c J an J un A u nov M M ar less IMPORTED More SOLD MORE STOCK

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42 www.autofile.co.nz Import rules may hinder supply he new stage of This means used imported that’s a net gain of about 200,000. there were 12,242 used cars government legislation is passenger vehicles with engines That’s a lot of vehicles. imported into the country – an 8.6 set to affect the availability of more than two litres in capacity “There’s a lot of interesting stuff per cent decrease on November ofT suitable used stock that can will need to have the safety system going on at Ports of Auckland – the 2016 and a 17.7 per cent decrease cross New Zealand’s border. installed and operational. role the port plays in the fabric of our on October’s 14,866 units. David Vinsen, chief executive of “That will limit the supply of society, what the alternatives may be There were 14,924 used VIA (the Imported Motor Vehicle those vehicles for a bit and there for both the use of the land and what passenger vehicles registered Industry Association), says 2017 will be a bit of a downturn for the alternative for our industry is if it during November – an increase of has been a good year for the sector them,” said Vinsen. moves somewhere else.” 5.7 per cent on October and a 16.9 with more than 165,000 used “We have got a new Vinsen said the market had per cent rise on November last year vehicles coming into the country. government. We are going to have been pretty buoyant and there’s when 12,762 cars were sold. “We have had little government some changes, but we aren’t sure the wealth effect people have had The variance between imports intervention for the past couple what yet. There’s nothing else in their homes. and sales has resulted in a 2,682 of years – no new rules, no new confirmed. That [ESC] is the only “They know Auckland Council’s reduction of stock on dealers’ laws,” he told people attending piece of legislation that’s been able CVs have gone up and there are yards. This has left the stock total at last month’s seasonal gathering in to affect us for some time.” lower interest rates, so people have 33,706, which is 13.7 per cent higher Auckland hosted by the association. Vinsen described 2017 as felt pretty buoyant,” he said. “This than November last year and down “What we’ve seen is the number “another good year”. “We’ve had means consumer confidence is good, by 7.4 per cent on October. of vehicles that are coming in and 165,000-odd light used vehicles and we’ve had people spending Year to date, 156,545 used cars dynamics of the fleet are a natural coming into the country this year money and buying vehicles. have entered the country and reflection of market forces.” and 115,000 new. “You could argue that’s the natural 151,552 have been sold resulting He did, however, sound of a word “The question always is what order of things. If the government in a surplus of 4,993. Stock on of warning with the next stage of happens to them all. We will keeps its hands off, that’s the sort of hand has dropped to 75 days and mandatory electronic stability control probably scrap and exit about thing that would happen.” daily sales now average 451 – the (ESC) being introduced in March. 85,000 from the fleet this year, so As for last month’s statistics, highest rate this year.

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 Nov ‘16 13,400 12,762 638 29,652 408 73 Dec ‘16 12,242 13,181 -939 28,713 410 70 140 Jan ‘17 10,583 12,933 -2,350 26,363 413 64 Feb ‘17 13,829 12,260 1,569 27,932 415 67 120 Mar ‘17 19,546 14,474 5,072 33,004 421 78 Apr ‘17 13,017 12,507 510 33,514 422 79 100 May ‘17 16,584 14,439 2,145 35,659 427 84 November 2016 — November 2017 Jun ‘17 15,530 13,339 2,191 37,850 431 88 80 Jul ‘17 14,492 14,430 62 37,912 434 87 Aug ‘17 12,455 14,483 -2,028 35,884 439 82 60 Days of stock Days Sep ‘17 13,401 13,645 -244 35,640 442 81 November 2015 — November 2016 40 Oct ‘17 14,866 14,118 748 36,388 445 82 Nov ‘17 12,242 14,924 -2,682 33,706 451 75

20 Year to date 156,545 151,552 4,993 Change on last month -17.7% 5.7% -7.4% v g

ay Change on Nov 2016 -8.6% 16.9% 13.7% o ct S ep J ul F eb N o A pr D e c J an J un A u nov M M ar less IMPORTED More SOLD MORE STOCK

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MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply.

www.autofile.co.nz 43 GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE

Season's Greetings

From all of the staff, we wish you all safe and happy holidays

No better time to take advantage of Autohub’s Bonus Rewards programme Check out our suppliers at www.autohub.co/rewards.html or contact Tony Tiehuis at [email protected] or 09 412 2763

www.autohub.co +64 9 411 7425 [email protected]