VOLUME 6 ISSUE 10 NOVEMBER 2015

“DOING THE BASICS” WILL MAKE YOU MORE MONEY FIND OUT ON PAGE 22

EV pioneer switches on to trucks

x-pat Kiwi engineer Ian Wright - co-founder of Tesla Eand founder of Wrightspeed - thinks much of the EV push is misdirected. Auckland mayor Len Brown, president of Penske Transportation Group International Randall Seymour While in Auck- and chairman of Penske Automotive Group Roger Penske. land in October for the transport fuels and fleet management Penske says ‘not at this summit, Wright took time from his schedule Ian Wright time’ for NZ automotive to speak to DIESELTalk editor Robert Barry. lobal automotive icon Roger sales, parts and leasing and was an He believes that when the Penske has not ruled out early investor in online vehicle sites. automotive world looked to de- Ginvesting in the New Zealand He is a motorsport legend, and velop electric vehicle solutions to automotive market, in the long term. owner of a number of teams, includ- save fossil fuels, the manufactur- Penske has interests including ing the former Dick Johnson Racing ers asked the wrong question. automotive retail, truck distribution, Continued on page 3 “They didn’t ask, how can we save the most fuel per vehicle per INSIDE year?” he says. Import dealer to list? 3 Read the full interview with Industry backs Green move 4 Wright in DIESELTalk, out Tuesday Familiar face returns to financier 6 morning. Go to DIESELTalk.co.nz New player for Auction market 8 3 6 to subscribe.

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2 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz NEWSTALK

2 Cheap to list? AutoTalk Magazine and autotalk.co.nz are published by Auto Media Group Cheap Cars has confirmed it will be self-funded,” he says. “But 8/152 Quay Street, Limited. is considering an Initial Public our goal is to become a multina- P.O. Box 10 50 10, Auckland City, 1030. 2 Offering for the company as tional.” Ph. 09 309 2444. it continues to grow – and looks The target market: Australia. beyond our shores. “In Australia we would like to be MANAGING EDITOR “It is something that is on the ta- in a position to make a big move Richard Edwards ble in terms of our expansion,” said when the [so-called grey market] 021 556 655 chief executive Eugene Williams. market opens there.” [email protected] “At the moment it is a possibility.” He says despite the current Eugene Williams “At the moment the focus is on network the company has in New PUBLISHER putting together a high-level management Zealand, there are regions where he sees Vern Whitehead team,” Williams explains, noting the hiring room for expansion. 021 831 153 of former Autosure national sales manager 2 Cheap is about to open the doors on [email protected] Darren Marmont as vice-president, and its first ‘new’ vehicle dealer – selling parallel that it is looking to employ a chartered ac- imported vehicles from Japan, in Greenlane, countant as chief financial officer. Auckland. CHIEF REPORTER Robert Barry He says the company has international Currently, there are only two publically- 022 0180 998 aspirations, and that is where IPO funding listed dealer groups in New Zealand, Co- [email protected] will be required. lonial Motor Company and Australian giant “Any further expansion in New Zealand Automotive Holdings Group. SALES MANAGER Dale Stevenson 021 446 214 Penske says ‘not at this time’ [email protected]

Continued from page 1 Penske Commercial Vehicles and Pen- OPERATIONS Australian Supercar team. ske Power Systems under the one roof, MANAGER His automotive retail businesses, most- including 90 staff. Deborah Baxter ly under the New York Stock Exchange- It will be home to Western Star Trucks, 027 530 5016 [email protected] Listed Penske Automotive Group of which MAN Truck & Bus, Dennis Eagle, MTU and he is chairman and chief executive, make Detroit. him one of the largest car dealers in the “This represents a significant invest- IDENTICAR world. ment for the company, and demonstrates MANAGER Penske was in New Zealand to open our commitment to dealers and custom- John Stephens the South Auckland headquarters for Pen- ers in the region.” 027 530 5023 [email protected] ske’s truck-focussed interests here. The new facility compliments Penske’s Asked AutoTalk if he was looking to ex- established Bay of Plenty operations. Auto Media Group Limited makes pand into the automotive retailing space Penske’s business have a staggering every endeavour to ensure here, he indicated, not at this time, but foothold in automotive retail worldwide, information contained in this wouldn’t rule out the possibility of doing it representing over 40 brands through 341 publication is accurate, however in the future. franchises, mostly in the United States, we are not liable for any losses or issues resulting from its use. “If we don’t do well selling trucks out United Kingdom and Western Europe. Annual subscription: of here, we might have to look into cars,” The Penske California dealer operation, $72 + gst ($82.80) he joked, to the applause of the crowd.” Penske Motor Group, operates the world’s Printed by: Alpine Printers. The purpose built facility is Penske’s largest car dealership, Longo Toyota, largest New Zealand operation, and brings which covers 50 acres.

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AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 3 NEWSTALK

Industry backs electrifying proposal

proposal to give a tax break putting clean cars within spectrum of things that can to businesses that acquire almost everyone’s reach be done. Aelectric vehicles for staff in just a few years,” Gen- Pyle says his organisation use has found favour within the ter explains. is working on a ‘road-map’ of automotive industry. Transport minister initiatives that can assist, from Green Party transport Simon Bridges has been government moves like this, spokeswoman Julie Anne a proponent of electric through to charging infra- Genter, and co-leader vehicle technology, but structure and parking. They James Shaw, are to intro- has been criticised to want to see all players work- duce a private members David Crawford his hands-off, market- Eric Pyle ing together to avoid duplica- bill into parliament that will led approach to the tion of services. exempt electric vehicles from Fringe issue. While the FBT cut would save busi- Benefit Tax. It is expected he will release further nesses money, he notes not all EV “Tax breaks for businesses who incentives for the purchase of the vehi- buyers are looking simply at the bottom choose electric cars provide a major cles before the end of this year. line. cash incentive to switch to a clean, Eric Pyle, chief executive of Drive “For some it will be the cost reduc- efficient fleet, cutting the upfront cost Electric, is giving his support to the sug- tion, some it might be parking, others of an electric car by up to 36%, with gestion. charging infrastructure,” Pyle says. “We further savings over the life of the car,” “We welcome initiatives that are need to cater to all these people and Genter says. going to increase the uptake of EVs, their needs. “We’ll also give tax breaks to com- and FBT is an option that has been “The minister is talking about re- panies who provide their staff with discussed for some time,” said Pyle. leasing a package for EVs this side of public transport passes instead of free “I think it would be a signal from the Christmas, let’s wait and see what the carparks. government of the day that they are government comes up with.” “By dramatically increasing the behind the uptake of this technology.” Motor Industry Association chief ex- number of new electric cars in New Pyle notes it would increase business ecutive David Crawford says his group Zealand, we’ll pave the way for a large confidence in purchasing such vehi- is well behind such a policy and has told second-hand market for electric cars, cles, but says it is only one of a broad the government so. “The MIA has been on the public record that if the government wants to increase the uptake of plug-in electric vehicles, an FBT holiday is a good option,” Crawford says. “Currently 70% of new vehicles are purchased by businesses, so Fast Approval. Competitive rates. assisting them could make a real difference.” Crawford says the premium price Shift your sales of plug-in options is a constraint for fleet operators, and this could make a into top gear. difference. He says indications from Treasury are that such a move is difficult as it To find out how we can may open the doors to others seeking help drive more vehicle tax relief. sales for your business talk “But we have a precedent here, to us on 0800 269 100 or as theses vehicles already have an visit www.udc.co.nz exemption from Road User Charges until 2020,” he notes. “The government should seriously look at this as an option.”

4 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz NEWSTALK

MTA finance company on the cards?

he incoming president “MTA would consider alternatives to recreate of the Motor Trade As- the concept for the benefit of its members” Tsociation has suggest- ed that a co-operative style – Dave Harris. finance company is required in the automotive industry, and that the association may cided to sell out to corporate need to ensure its members move to assure one exists. interests, which they are en- receive guidance on the op- National president Dave Motor Trade Finance, which titled to do, it would certainly tions they have. Harris issued a statement last for much of its history has change the dynamics of the “We will carefully watch week noting the associa- been owned by loan origina- finance sector. as the Heartland and Turners tion was keeping a ‘watching tors – vehicle dealers. “Our understanding is that corporate plays take their brief’ on the sector, in light of “Motor Trade Finance has there is at least one formal course and should the MTF recent mergers and consoli- played a very important role due diligence process un- cooperative model disap- dation in the industry. in the auto industry for 45 derway with Heartland, while pear as a result of the current Harris particularly noted years as a co-operative style Turners continues to accu- market activities, MTA would the current moves by both finance company, owned by mulate shares.” consider alternatives to Turners Limited and Heart- the companies that originate As many of the MTF origi- recreate the concept for the land to take a stake, or in the the finance contracts,” Harris nators are also MTA mem- benefit of its members” he case of Heartland take-over, notes. “If shareholders de- bers, Harris says MTA will explains.

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

Familiar face returns to UDC

ou can scratch the ners before it was sold word ‘new’ when to a private equity firm, Yreferring to UDC’s new and then moved to chief executive Wayne Per- Esanda in Melbourne cival – he has been involved where I spent two with the brand since the years setting up a used early 1990s. vehicle finance opera- AutoTalk sat down this tion, before running the week to talk with Percival Victoria State Region. on his return to the market- AT: You then re- leading brand. turned to New Zealand? AutoTalk: You have been WP: Yes, I returned with UDC, and the wider to work for ANZ in ANZ group, for a long time. Business Banking, My Wayne Percival: Yes. I most recent role was started with UDC as a Dealer looking after the Mort- Wayne Percival Account Manager in 1993, gage Broking business initially in the Hawkes Bay and Mobile Mortgage my experience and try and even though I haven’t area. My next two roles team for ANZ. something different - so worked for UDC for some were as Business Develop- AT: Is this a role you have seven years and various time, I’ve kept in contact ment Manager and National wanted for some time? roles with ANZ were fan- with what’s been going on in Sales Manager for the motor WP: The opportunities tastic. the business. vehicle and agri part of the have been there to come This opportunity came at AT: With your banking ex- business. I was General back, but the timing wasn’t the right time I’ve always perience in mind, how well Manager Esanda FleetPart- right - I wanted to broaden had a passion for finance, Continued on page 7

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

Continued from page 6 ally focused on how we help provides dealers with re- is enormous value in data, - do you think New Zealand deliver sales and profit for porting, online applications It’s how you utilise that data dealers are doing at selling our business partners. and access to their whole- that counts when putting finance? AT: We are seeing a lot sale facilities in real time. these offers together. WP: I think there’s always of growth-by-acquisition AT: Your Australian AT: Are you pleased with room for improvement -we in the finance market at the equivalent – Esanda – was the team you have returned work with dealers at both moment. UDC has not so far recently sold off by ANZ. Is to? ends of the scale. We see become involved, but is that there a risk of that happen- WP: Yes. Many of the dealers who run fantastic something you may look at? ing here, and does it impact team have been around a systems, run fantastic busi- WP: Opportunities do UDC in any way? long time and are experi- nesses and are very suc- come along. We’ve been WP: UDC is a separate enced industry operators. cessful. We also see other very successful in growing entity, and look, the bank I’ve had some really good customers that do well, but on our own merit without has businesses that it buys feedback from distribut- could do better in this area. having to purchase, and and sells, or acquires, but ers and dealers. I employed Some acknowledge that, believe we can continue to no, it is not on the cards for some of them 10-11 years but some still see Finance as do that in both new cars and UDC. ago, and have watched their the ‘and’ instead of part of used. AT: We have recently seen careers grow with UDC. the overall sales process. AT: Is the reduction in a big push in no deposit and AT: Have you had a AT: Is it your team’s role players a good thing for the low-interest finance in the chance to get out on the to convince them other- market? new vehicle industry. Do you road and meet some deal- wise? WP: Some of the smaller think this will continue? ers? WP: Yes, most definitely. companies have to buy to WP: We know what WP: Yes, I do get out on At the end of the day, we get scale, or they have to finance offers work and a regular basis. I am focused should be an education buy to get the technology. what doesn’t work. One of on meeting a diverse range provider. We’ve had massive the great things about UDC of customers across all AT: Are you happy with growth in the use of tech- being as big as we are and divisions of UDC and have UDC’s share of the distribu- nology. The UDC Live sys- being around as long as we enjoyed reconnecting with tor – or ‘white label’ – fi- tem has been groundbreak- have, is data. I think most many of our customers I had nance market? ing, and competitors will people know now that there worked with previously. WP: We’ve seen healthy try to catch up to it. We are growth and really value the working on the next phase distributor relationships we to make sure we stay ahead 6 POWERFUL REASONS WHY YOUR have. We want to do more, of the game. STAFF WOULD BENEFIT FROM ATTENDING but I’m conscious that we AT: What is UDC Live? ANDREW MEARNS’ WORKSHOP need to continue to earn the WP: UDC Live is our front right. That’s why we are re- end operating system which 1. Ensure your Team has a full understanding of the psychology of selling, sales techniques and selling fundamentals. Turners to continue to 2. Turn shoppers into buyers by controlling your selling situation. work on MTF stake 3. Structure transactions for more gross profit. 4. Everybody will have the mental resilience to urners Limited has announced it will continue to achieve no matter what adversity comes their look at acquiring additional shares in financier way. TMotor Trade Finance. That is despite failing to hit its 20% target. 5. Proven sales strategies take only a few weeks to Turners Limited chief executive and director Paul By- master, however the return on investment cannot rnes, says some discussions would continue with MTF be exaggerated. shareholders who are no longer originating loans, but 6. Ensure they have Mind Mastery techniques to are required to hold shares in MTF while loans origi- optimise consistent sales figures. nated have some balance outstanding. “We are prepared to consider taking over existing http://www.andrewmearns.com.au/sales-audit/

obligations or acquiring receivables from MTF mem- Visit for a Free Sales Audit of your Team (valued @$2500). bers in ‘run-off’ to enable them to sell their holdings,” Byrnes explains. “However, our main focus now will be to work with MTF management, board and shareholders to explore any opportunities and value we might be able to bring to the business”. Call: 021 932 400

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

New auction player to build links with trade

ell-known general auctioneer to work with the trade as it grows. company repossessions of electron- Grays has entered the auto- The company has traditionally fo- ics stock – but is ramping up its online Wmotive market, and has plans cussed on stock liquidation and finance presence, with a firm focus on the automotive industry, through its GraysOnline brand. Grays’ automotive specialist Mike Edmonds believes that the company has the right strategy, concentrating on commercial The New Zealand Automotive Industry’s software provider of choice interests like vehicle importers.

35 Years 3,000 Clients 10,000 Users can’t be wrong! Automotive & Industry IT

ADP Autoline: The world’s most popular Dealer and Distributor Management System from the world’s largest provider. Edmonds says that by focussing the automotive offering on web- based auctions, there’s plenty of NZ’s most installed and fastest growing Dealer and space in the market. Fleet Management System with over 400 installations. “It wasn’t so much that we saw DEALER MANAGEMENT IT shortfalls as the current players are very good at what they do,” he says. “What we believe is that our purely online platform provides NZ’s acclaimed Workshop Management System runs 50% of auction buyers with a very comfort- independent motor industry service and repair businesses. AUTOMOTIVE SERVICE IT able bidding process over the space of five days for each sale and offers our vendors a quick and effect new channel that they can grow their TSI Group’s own computer hosting and cloud services division, and sales figures through. NZ’s largest automotive industry specialist IT services company. The focus will be on no-to-low reserve auctions. “The beauty of when we run un- proudly exports Kiwi know-how and expertise to the world with clients in 24 countries. reserved sales starting at $9 is that they generate both a lot of excite- ment, excellent results and helps us to stand out from the crowd. “It attracts a lot more bidders to participate in the sale, and if some- one is leading the bidding on a car, Contact: Paul Wilkinson [email protected] 09 5832482 0274475513 no matter at what value, they are Continued on page 9

8 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz NEWSTALK

front of and this will help us build the foundation of this new division. “One-on-one relationships are the keystone of this venture for us,” Ed- monds says. “Wholesalers are passion- ate about their businesses, and we are excited to help them grow them. “I haven’t met anyone in the auto industry yet who doesn’t love cars if you love talking cars, and you love selling cars then I think we’re going to get along like a house on fire.”

A listing from Grays’ Australian site.

Continued from page 8 already seeing themselves behind the wheel and imagining it as theirs,” Edmonds explains. “At the end of the auction this emotional investment can really draw out some extra bids and in our experi- ence, maximises the returns for the vendor. He says they have had a good response from the trade to date. “We’ve had a good response generally with a lot of people keen to get involved,” says Edmonds. “The only barrier has been the current situation with the difficulty some wholesalers are having in Morning Midas Morning Morning Midas Port Calls Tokyo Car V 5 replenishing their stocks from V 6 Miracle 21 V 7 Japan and having vehicles on hand Osaka 3 Nov 15 Nov 2 Dec 16 Dec to send us. “Being a new division amongst Nagoya 4 Nov 16 Nov 3 Dec 17 Dec our GraysOnline brand is exciting, Yokohama 5 Nov 17 Nov 4 Dec 18 Dec and the challenge is to turn ven- dors who are keen on trialling our Auckland 20 Nov 5 Dec 19 Dec 4 Jan platform and seeking its benefits, Wellington 26 Nov 8 Dec 26 Dec 7 Jan like the vendors of our Australian branches, who are now selling Lyttelton 27 Nov 7 Dec 26 Dec 6 Jan over 1500 motor vehicles per month combined through them,” PORT TO DOOR SERVICE INCLUDING: he notes. Over the coming months,  MPI Border inspection  NZ Customs clearance Edmonds says GraysOnline will concentrate on creating solid part-  Odometer certification  Delivery Nationwide nerships with the trade.  Digital Photography for  Insurance “The next six months is all about building relationships with poten- prior sales in NZ tial partners in the market and not so much about the numbers,” he says. “The industry is relationship- driven, and we need to be con- www.armacup.com tinually in front of prospects to update on how we are going and what results we have achieved. The goals will be focused on how many prospects we can get in

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 9 LAUNCHEDTALK

Superb opportunity

Nick Wheeler, koda New Zealand is on a strong growth path. Last year Kelly Ware and it sold 850 cars, this year it will cross a thousand, and Steve Owens next year is targeting 1300. reviewing S results. New models are one-factor driving sales, with the com- pany getting a good push out of the launch of the new Fabia earlier this year, but so is momentum. “Fabia clearly attracted new buyers to the brand, and our market share spiked,” says Skoda New Zealand general manager Greg Leet. “And that is what we are expecting with the new Superb.” More cars on the road means more buyers. “We have become “When you start to get some mass out there on the road, people become more aware of the brand,” Leet says. “People A more profitable, become more aware of what Skoda offers.” The new Superb, launched last month, moved just short of 100 units last year, with Leet expecting that to double to 200 professional, – 60 sedans and 140 wagons – next year. It is hard to argue the Superb is one of the best value ve- and efficient unit” hicles on the market, with pricing aligned to take on the Ford Mondeo, which at the opening “We moved to Provident after meeting with Steve price point has Owens. His industry knowledge and ability to help more power, but both us and our clients was impressive. He is a man at less spec. the top of his industry, but always available to help Leet is insist- with any information and advice. ent cars like the Steve has helped our company in evolving our Finance Mondeo – main- and Warranty department into a top performer. He stream brands – is where the Superb’s competition lies. flew to Christchurch, interviewed all the candidates, “Our competitor set is mainstream vehicles,” he says. “Of- and managed the training of our new business/ ten you will see the Superb compared to vehicles far higher finance manager. up the market and price range.” Wheeler Motors has become a more profitable, The range opens at $44,900 for a 1.8-litre petrol 132kW TSI professional, efficient unit. And our clients are unit with a seven-speed DSG transmission, next is a 2.0-litre reaping the benefits. 110kW TDI and six-speed DSG for $50,900, a 2.0-litre 140kW To anyone who doesn’t know Steve, I would personally TDI with all-wheel-drive is next for $57,900 and the range vouch that 15 minutes of your time would be well tops out with a 2.0-litre 206kW all-wheel drive with a six- spent sitting down with him, explaining your business speed DSG for $59,900. They may call them sedans, and they look that way, but model, then let him show you how to get better.” are in fact lift-backs, eschewing the old models special – NICK WHEELER, Dealer Principal, Wheeler Motors split-fold tailgate. Wagons are available on all levels, at a $3000 premium. Specifications are strong, with even the base model getting Introduce the Provident Profit such niceties as an Alcantara and leather interior, heated front seats, dual-zone climate control, parking sensors and revers- Factor into your business, ing camera, cruise control and 18-inch alloy wheels. talk to Steve Owens or visit Move up to the 140kW TDI or 206kW TSI and specifica- www.providentinsurance.co.nz tion moves up to a full leather interior, 19-inch allow wheels, ‘Kessy’ keyless entry and start, adaptive cruise-control with a traffic jam function (206kW only) and a Drive Mode Select system. Continued on page 11

10 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz LAUNCHEDTALK

Continued from page 10 All models have the usual suite of safety features, with each model getting some form of intelligent safety technol- ogy. All cars get a ‘Front Assistant’ with autonomous braking, lane change warning and assist, and blind spot warning. The Superb is one of the first cars launched in New Zealand with both Android Auto and Apple Car play fitted as standard, both get LCD screens and navigation - a larger, higher specification unit in the top model. Leet says the wagon will do 70% of the volume on the new model, while the $44,900 vehicle is likely to bring new busi- ness to the brand.” “I think the $44,900 car is going to be a great opportunity, and interest is very high in the 206kw car, but I think that is because it is a new model and the top model<‘ he explains. “Traditionally diesels are our highest selling models, and I do not see that changing.” AutoTalk drove only the 140kW TDI at the Superb’s recent launch, and came away very impressed. The car is impressive for its roominess, both front and rear, almost limo-like in legroom for those in the back. Build quality feels as good as anything Audi can offer, even if you can see the price difference in some of the less-impor- tant plastic surface choices. The ride is firm, but not uncomfortable, and steering light and relatively direct for a big sedan. The car lacks some of the feel of the Mondeo, but is still a strong drive. The all-wheel-drive traction was appreciated when hit by a strong Auckland spring squall, although the wipers on our test model seemed a little flimsy.

Customers ‘Gold Bars’ Leet was quick to address the ‘elephant in the room’ at the launch, the Volkswagen Group’s emissions issues. A small number of Skodas sold here have been pulled into the issue, Leet says. “It has been a trying time, not only for Skoda, but all the European Motor Distributors brands.” “What is really important for us is we communicate with our customers,” he says. “There will be a fix, and we will get through this.” www.myfinance.co.nz “What we have committed to do is reset the bar on what the customer recall experience is for customers,” he claims. call 0800 385 385 “It is really important they are treated like gold bars.”

Out of government One disappointment of the last year for the Skoda team has been the brand no longer being in the ‘All of Government’ fleet programme. Skoda has had significant success with government fleet business, particularly with Octavia, but in the latest round rather than working on its own, the brand took part in a group tender across all of the European Motor Distributors We’re in this together brands, which was not successful. Leet indicated, however, that the brand is still doing business with some government organisations and had been moving a number of units before the previous tender ended.

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 11 PEOPLETALK

MITO scholarship drives performance passion

ulius Bloem knew pretty quickly he wanted to Jbe a mechanic - but not just your average span- ner spinner, one that made things go fast. Now Bloem is a motor- sport technician and work- shop manager at a workshop with a name synonomous with pace and performance - Possum Bourne Motorsport. The go-fast garage started by the late, great Kiwi rally driver Peter ‘Possum’ Bourne is just a stone’s throw from Pukekohe Park Raceway - and the former MTA appren- tice of the year couldn’t be

more at home. Apprentice of the Year, the The 22-year-old now prize package including a trip leads a team of seven, in an to Sydney for some hands- industry he loves. on experience with a V8 rac- At school, Bloem wasn’t ing team in the final round of sure what he wanted to do. the 2013 V8 Supercars – with But with passion for cars, he New Zealand Supercar driver took part in MITO’s StartUp Greg Murphy calling him to programme, which enabled let him know he’d won. him to spend one day of the “My Sydney experience school week in an automo- was awesome. I assisted in tive workshop. some panel repairs caused “It was then I knew I by the tight street circuit, as wanted to be a mechanic, well as maintenance of the working specifically on car and pit crewing. Greg’s performance and race cars,” dad, Kevin, was my personal he says. tour guide – it was an amaz- Bloem left school at 18 ing experience,” says Bloem. and started work at a high- He won a 2015 MITO performance car specialist, business skills scholarship who offered him an appren- that enabled him to enrol in ticeship. MITO’s business skills train- With his apprenticeship ing programme. complete, Bloem gained a Applications for the National Certificate in Mo- 2016 MITO scholarship tor Industry (Automotive programme, including 20 Electrical and Mechanical business skills scholarships Engineering) (Levels 3 and 4) are now open at mito.org.nz/ Light Vehicle. scholarships, and close on In 2013, he won the MTA December 18.

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

sourced from Japan biosecu- rity inspected in New Zealand. October 12 THE The change came as part AutoTalk's of a consultation process over Macquarie secures managing editor a number of ‘import health Esanda for $8.2 standards for cars, trucks, tyres looks at the DIARY billion month gone by on and machinery. Macquarie Group won the

Richard Edwards Richard AutoTalk.co.nz long running and highly com- October 8 petitive process to acquire the Esanda dealer finance portfolio New engines and from ANZ for $8.2 billion. ANZ’s New Zealand finance equipment upgrade Proudly brought to you by arm, UDC, is not part of the for Maserati Ghibli deal. New Zealand-bound 2016 Ma- serati Ghibli models will benefit Nissan partners with from a range of new Euro 6 Piha compliant engines and a host Nissan New Zealand launched of equipment upgrades. a partnership with the Piha Surf The entirely new range of Lifesaving Club. V6 petrol and diesel engines The deal includes the pro- October 1 October 2 for 2016 meet the new Euro vision of three eye-catching 6 emission standards and cut Navaras, specially set up for Ford’s free fix for Customers fear fuel consumption by up to the job. Focus mechanic ‘rip-offs’ 12% says the Italian manufac- Club president Peter Brown turer. Ford voluntarily recalled its Almost four out of five – 77% told TVNZ that the fleet will New safety features include pre-facelift Focus over a possi- – of New Zealand motorists dramatically speed up lifesav- blind spot monitoring, cross ble drivetrain defect – but said said they are wary of being ing missions. path warning and auto dipping it wasn’t, officially, a recall. ripped off when they take their door mirrors. The problem involved the vehicle for a service. Toyota again takes car’s halfshafts potentially That was one of the find- out ‘most valuable failing when the vehicle ac- ings from a new survey by October 9 car brand’ title celerated from a standstill. consumer research and ratings Toyota once again earned Ford New Zealand spokes- company Canstar Blue, which Kiwis place second in the title of the most valuable man Tom Clancy said that also found that 63% of Kiwis automotive brand in the world, 1146 Focus owners would be paid for vehicle repairs or Mercedes golf final according to Interbrand’s 2015 notified by mail to contact maintenance they were not A team of New Zealand Mer- Best Global Brands annual an authorised dealer to have expecting. cedes Benz customers finished report. the halfshafts replaced free of second in an international golf The company’s ranking charge. BT-50 squares off tournament organised by the jumped to number six, up two Mazda New Zealand managing brand. spots from the 2014 report. MIA welcomes ACC director Andrew Clearwater The 2015 MercedesTrophy consultation was adamant he wants to World Final was held from New peer-to-peer A new round of consultation focus on the 60% of the light October 1-6 at the Schloss lender to target was announced on how Ac- commercial market that is not Nippenburg and Solitude Golf cident Compensation Corpo- owned by Ford and Toyota. courses in Stuttgart, Germany. vehicle finance ration levies are calculated – Clearwater said that Another peer-to-peer lend- including to the controversial Ranger and Hilux account for New look coming for ing platform is set to enter the risk rating system. 35% of the current new vehi- Holden dealers market, with vehicle finance Risk rating, introduced for cle market for pick ups and Holden dealerships across one of its initial targets. the current 2015/16 levy year, he told the media that Mazda the country will be receiving The Lending Crowd, worked well for the majority is not interested in entering a makeover in the next few closely linked to Finance of vehicles but was plagued the battle between the two years, following plans to do direct and lead by Finance with errors for some makes brands. the same across the Tasman. Direct shareholder and boss and models due to the inflex- “Excuse the profanity, but The current Holden deal- Wayne Croad, has received ible nature of the ACC model there is a shit fight at the top of ership ‘corporate identity’ its license from the Financial used. the market, and we don’t need has been in place since the Markets Authority. to go there,” said Clearwater. Proposals included to mid-nineties. The overhaul is Group action reduce overall vehicle lev- likely to include interior and ies by 33% ($66.99 average MPI looking to end exterior developments, as launched in reduction, reducing the petrol NZ inspections for well as other changes to the emissions scandal levy by 1.2 cents per litre and most Japanese cars customer experience. A Wellington-based law firm the motorcycle safety levy by The Ministry of Primary In- The company has already called for interest in a poten- $5.00 dustries looked to remove the been through a programme tial class action against the ability to inspect used vehicles updating dealer websites to a consistent corporate look. Continued on page 14

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

Hunter moved to the new Total cost of Proudly brought to you by role of chief operating officer with Turners Group, which ownership tool until just over a year ago was launched Dorchester, a lender and insur- A new online tool has been ance company. launched to assist buyers – particularly business fleet dealership Car Giant has been Smith returns to operators – find the differing Continued from page 13 released. Porsche brand costs between fleet options. Volkswagen group – but for According to the report the Former Porsche New Zealand Commissioned by the En- the brand’s local boss, the bulk of the money outstanding general manager, and for- ergy Efficiency and Conserva- focus continues to be on the is owed to the Inland Revenue mer head of Sime Darby’s NZ tion Authority, and launched customer. Department, nearly $200,000. distribution operations, Grant this morning by transport Law firm Gibson Sheat hit The report said a business Smith, returned to the sports minister Simon Bridges at media, calling for owners of dispute was the beginning car brand. the New Zealand Transport affected vehicles to join the of the end for the ambitious Smith has been appointed Fuels and Fleet Management legal action, potentially seek- project. to the role of general man- Summit, the tool is aimed at ing compensation for what ager of Porsche Centre Hong ‘demystifying the cost of run- Gibson Sheat suggests will be Dealer staunch on Kong and Macau with im- ning an electric vehicle.’ a loss of vehicle value. value of partnerships mediate effect. The company, The relationship between a known as Jebsen Motors, Minister strongly member of parliament and a is the representative of the backs EVs; notes October 14 car dealership came up for dis- brand in the two Chinese ter- biofuel will play role cussion in the media – but in ritories. Minister of transport Simon Volvo jumps ship, an interview with AutoTalk the Bridges reinforced his love of backs Masters Games chief executive of the business electric vehicles at a speech in The World Masters Games in said the partnership makes October 20 Auckland, also noting the need April 2017 promises big things: good sense. to find other fuel options in the 25,000 athletes from 100 AutoTalk had already noted Joint effort lands meantime. countries for 28 sports at five the partnership between Ram pick-ups Bridges launched a fleet National MP Judith Collins venues in 10 days. Big American Ram pick-ups cost of ownership tool at the and Colonial Motor Compa- Volvo Cars NZ has signed are set to roll onto the market Transport Fuels and Fleet ny-owned South Auckland on as official vehicle partner courtesy of a new venture put Management Summit – but Motors, which has seen ‘brand to the event. together by well-known indus- also discussed the broader ambassador’ Collins drive try identities Ryan Walkinshaw introduction of EVs and other around in a dealer-provided and Neville Crichton. oil-consumption reducing Peugeot 308, sign written in October 15 Recognising this, a hand- options. support of the Papakura Com- shake between Crichton, munity Crimewatch. Wannabe car dealers owner of Ateco Automotive, More used EVs as UK Collins was also part of the and Walkinshaw of Walkin- becomes an option cause Invercargill recent opening of the new shaw Automotive Group Used import electric vehi- headache Southern Autos showroom. sealed a deal to start Ameri- cles will continue to play a Invercargill’s roadside car sell- can Special Vehicles, selling significant part in the roll out ers are set to be kicked to the right hand Rams in Australia of the vehicles in New Zealand curb. October 19 and New Zealand. according to the industry’s as- The city’s busy Tay Street sociation. has become a problem for Toyota adds NZ cars Imported Motor Vehicle motorists, business owners to airbag recall Industry Association chief and authorities – and hasn’t October 21 Toyota added 7340 more vehi- executive David Vinsen impressed legitimate local car cles to the recall roster due to questioned transport minister dealers. New BMW MD won’t faulty Takata airbags. Simon Bridges at the New Parked vehicles being predict luxury car Toyota New Zealand had Zealand Transport Fuels and hawked by unlicensed wan- already called back around sales winner Fleet Management Summit in nabe car dealers cause traffic 40,000 vehicles due to faulty The new BMW New Zealand Auckland about the opportu- problems with people double- airbag components. World- Group managing director Flo- nities for used EVs. parking to look, and some cars wide, Toyota has six million- rian Renndorfer won’t predict are parked for days at a time. plus cars under recall. which German automotive Models added were Yaris, brand is going to win the race October 22 Corolla, Avensis and Picnic. for top luxury car sales this October 16 year. Brazen thief in Auction boss takes The German native has Business dispute daylight Jag jack on broader role been in the top job at the New Zealand national sales A Jaguar XFR worth $165,000 beginning of the end Turners Auctions chief execu- company representing the was taken in broad daylight for Car Giant tive Todd Hunter is set to take Munich-based manufacturer from an Auckland car dealer The first liquidators report into a broader role with the firm’s for more than eight weeks. on Monday. parent. the failure of Wellington mega- Continued on page 15

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

Continued from page 14 The Australasian New Car gesting importers begin to take partnership. The brazen heist was lik- Assessment Program (ANCAP) note of the incoming rules “The Gazley Volkswagen ened to the movie Gone in 60 has also given the updated around Electronic Stability partnership is pretty exciting Seconds, about a luxury car Ford Ranger MKII, Toyota Control, with the first deadline for us,” says Jacques. “It gives theft ring. LandCruiser 200 Series, Volk- fast approaching. the event added security and a A hightech device was swagen Passat and Lexus’s IS From March 1, 2016, all MC stable base from which to do used to unlock the car, police five stars. class vehicles – SUV and off- some long term planning and believe. CCTV footage from road type passenger vehicles promotion. Beacham Independent Jaguar Northland’s EV with four wheel drive and less and Range Rover in Penrose community charges than nine-seats including the shows a man walk up to the driver. There are a number of October 29 silver Jag with his hand in his ahead other conditions vehicles in pocket. The thriving Northland me- this class meet. Man sold his own car tropolis of Kaiwaka is proving – twice its place as one of the north The Commerce Commission island’s most electric destina- October 23 October 28 is investigating a company that tions – with ChargeNet’s first sold a customer the same car New Zealand fast charging Tribunal reiterates VW dealer sponsors – twice. station. concerns Wellington Marathon Viliami Malungahu bought Kaiwaka – known for its The Motor Vehicle Disputes The Gazely Volkswagen Wel- a Toyota Estima last year from year-round light show – is a tribunal released its annual lington Marathon has been a Kasanita Management, which perfect stopover for a top-up report, highlighting concerns major event in the capital for allows people in New Zealand for electric vehicles, with the from cases over the last year. 30 years. to buy cars for family mem- ChargeNet station taking The Tribunal received 258 Event manager Michael bers in Tonga. pride of place at the local applications this year, 36 Jacques is buoyed by the new more than last and delivered Four Square. 154 decisions; six more deci- Turners gets 7% in sion than last year. Of the applications received MTF move and heard 130 were decided Turners Group Limited re- on the basis of the Consumer ceived acceptances for just Guarantees Act, 20 under the short of 7% of Motor Trade Fair Trading Act and four ap- Finance as part of its move to plications resulted in orders acquire 20% of the company. transferring the application to Turners made an offer to the Disputes Tribunal. ordinary shareholders of $1.15 per ordinary share. The offer closed on October 17. October 26 Turners Limited announced Dealers arrive at an earlier Autosure golfing event it will continue to look at Five star flood for acquiring additional shares in SUVs financier Motor Trade Finance. Dealers to hit course Seven vehicles were been Clock ticking on award five-star ANCAP safety ratings. first used-car ESC with Autosure Among them was Toyota’s implementation new Fortuner, the Ford Everest The Imported Motor Vehicle ealers, and members of the trade, will again be SUV and Volvo’s new XC90. Industry Association is sug- hitting the greens with the 2015 running of the DAutosure Annual Golf Event next Thursday. This year will be the 22nd running of the event. All the Auto Industry HOT NEWS A long-running fixture on the industry calendar, 124 every day as it happens on participants from within the car and finance industry will www.autotalk.co.nz tee off at the Pakuranga Golf Club. Subscribe online for FREE twice weekly A special guest this year will be Autosure-supported updates direct to your email drifter Curt Whittaker.

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AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 15 INDUSTRYTALK Crawford’s Case brought to you by By David Crawford, CEO of the CRAWFORD’S CASE Motor Industry Association of NZ (Inc). By David Crawford, CEO of the Motor Industry Association of NZ (Inc). MARAC, a division of Heartland Bank Limited. Consultation season in full swing he MIA, like the IMVIA, minister in July and met with two consultation. a means to achieve this is not MTA and the AA, has her in August to make a case supported by manufacturers. Tbeen active in respond- for changes. We were blunt Fuel Specifications It can be done, but at the cost ing to a number of govern- in our assessment of the MBIE sought views on of wear and tear on engine ment consultation docu- scheme as implemented this a review of aspects of the components and decreased ments and discussion. year, and demanded changes Engine Fuel Specifications service intervals. The issues canvassed by be considered and consulted Regulations 2011. Consul- government were ACC lev- on for the 2016/17 year or tation closed on Friday 30 Biosecurity ies, review of the NZ engine else we would withdraw our October after a six-week MPI is consulting on fuel regulations, import bi- support for risk rating. period for consultation. The changes to import controls osecurity measures and pro- MIA compliments MBIE for for vehicles, with most of the motion of plug-in vehicles. The MIA remains of the view, leaving consultation open for changes targeting the risk of Expected before Christmas if done right risk rating is six weeks as opposed to the the brown marmorated stink is round two of ACC vehicle useful. If done wrong, it is government norm of four bugs coming in from the USA. risk rating, and a discussion not helpful. weeks. It permitted industry The MIA supports the new document on the review of To give the Minister credit, associations to seek views measures proposed by MPI, the Vehicle Dimensions and she and her Board have back from their membership. which mirror those imposed Mass Rule. included most of the sug- The MIA supported most in Australia. In a first for the ACC mo- gestions we sought. The two of the changes proposed by tor vehicle levies, ACC has most critical improvements MBIE except for two ar- Plug-in Vehicles – making usefully broken its consulta- sought were tightening the eas. MBIE sought views on the case for an accelerated tion on levies and vehicle risk rules around the use of the whether the allowable limit uptake rating into two parts. During total secondary safety index for biodiesel should be lifted The Government con- October, the MIA responded data (TSSI) and introduce from 5% by volume to 7% by tinues to show heightened to proposals on the overall model generations to sepa- volume. interest on promoting the levy and the methodology rate older and new genera- The MIA has opposed this uptake of what they call EV’s to risk rate vehicles. The MIA, tions of the same model. on advice from the Japanese (electric vehicles) and which along with others, supported Each newer generation Automobile Manufacturer’s the industry more correctly the 33% proposed reduction has significant safety im- Association (JAMA). calls plug-in vehicles. We in vehicle levies, the reduc- provements on older genera- Given the high percent- understand the Minister of tion in the ACC component tions, and risk rating needs age of used Japanese diesel Transport will announce this on fuel excise and considera- to reflect this. As such we vehicles in our fleet, we side of Christmas a package tion on putting a part of the have supported most of the believe it is premature to to incentivise the uptake of vehicle levy for diesel vehicles proposals included in the increase the limits, the risk plug-in vehicles. on RUC (road user charges). consultation documents by being potential for fuel While the MIA has some However, as readers of the Minister. systems to be compromised. concerns over government this column will know, the The proof in the pudding Advice from the European picking winners and the story MIA has been particularly though is in the eating. It is manufacturers was also not behind why it is focusing on critical of the way in which not until we see the revised to increase the limit. plug-in vehicles (a climate ACC has risk rated vehicles vehicle rating bands that we The 7% level in Europe was change initiative) there is no for the 2015/16 levy year. will know just how much contrary to manufacturer’s doubt in our minds that the We have been vocal on these changes will improve advice. NZ fleet needs to diversify improvements we believe the credibility of vehicle risk The other area of concern its vehicle types for a range need to be made to improve rating. The bands will be is the proposal to change ox- of reasons. I will pick up this the methodology for the fol- consulted on over Decem- ygenate limits. The proposed theme in my column next lowing year. We wrote to the ber/January. We await stage use of up to 3% methanol as month. 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16 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz INDUSTRYTALK

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VINSEN‘S VIEW & The monthly report from chief David Vinsen A month in the life of…

e’re often asked: their new models, and most mation and key contacts. accurate, so that the levies “What does a motor national jurisdictions are (built into licensing fees) will Windustry business working on the legislation Trade delegations be fair and correct. association actually do?” that will be necessary to deal We are regularly visited This month, I thought with these developments. by delegations from (mainly Tokyo motor show I’d answer the question by ABS and ESC were just the Japanese) businesses and IMVIA’s technical services detailing some of our recent start of intelligent transport interested groups, seeking manager, Malcolm Yorston, activities…a month in the life features - the ultimate will information and introduc- attended the trade-only day of a motor industry business be autonomous (self-driving) tions to the New Zealand at the Tokyo motor show, association. vehicles. We see IMVIA’s role market. while on holiday visiting fam- The IMVIA started life as ensuring that the New Recent visits were from ily in Japan. Our interest is very much as a reactive or- Zealand industry is ready for the government of Okinawa, in ESC fitment rates, as well ganisation, fighting for the any changes, and that the researching the opportu- as new vehicle specifications right to import used vehi- introduction of intelligent nity to develop their port generally. Malcolm identified cles on a commercial scale... transport functions does not for vehicle exports, and a that almost every new vehi- to open the door for used limit or prevent the importa- delegation from JUMVEA cle, including heavy, has ESC vehicle imports. tion of used vehicles. (the Japanese Used Motor fitted as standard, and most Over the past 27 years, This could easily occur Vehicle Export Association, are incorporating some form the role of the association if, for instance, the radio with whom we’ve had a long of intelligent transport func- has evolved into much more frequency chosen for intel- relationship), as well as from tions into their new designs. than that, but one of our ligent transport is incom- business groups. core functions is still advo- patible with frequencies set Electric vehicles (EVs) cating for the wider used aside for other uses in New Australia The minister of transport vehicle import industry…..in Zealand. In such cases, used We attended the AGM of (and energy) Simon Bridges essence, keeping the door vehicles would be ‘prohib- AIMVIA, the new association is driving the implementa- open. ited imports’. representing the used vehicle tion of the government’s And to do that, we have We have been research- industry in Australia. AIMVIA policy for the fastest pos- to look much further ahead ing this issue for the past is just 12 months old, and sible uptake of EVs into our than we have had to previ- 18 months, along with MoT has made excellent progress fleet; used vehicles, because ously, to identify future is- and other agencies. Earlier in establishing its leadership of their price point, will be sues that have the propensity this year our policy analyst, team, developing policy and an essential element of the to limit or prevent imports. Kit Wilkerson, attended the representing their industry strategy to achieve the gov- But we also have to do much Asia Pacific conference on to government. IMVIA still ernment’s goals. more than that, as I’ll detail intelligent transport in China, provides services to AIMVIA There will definitely be below. and recently he participated under a commercial man- opportunities for the used Here are some of the in the International Con- agement agreement vehicle import industry. MoT recent activities and issues gress in France, attended is leading the work on this we’ve been dealing with: by thousands of delegates: ACC safety ratings issue, and IMVIA is actively engineers, designers, legisla- We have been actively participating in the work- Intelligent transport tors and industry groups. We participating in the combined ing group, along with other Almost every motor vehi- have met with the design industry group advising ACC industry organisations, local cle manufacturer is progres- engineers from a number of on vehicle safety ratings for and central government sively introducing elements Japanese manufacturers, and next year’s levies. Our role departments, and electricity of intelligent transport are making good progress in has been to ensure that the industry businesses. functions into the design of acquiring knowledge, infor- ratings for used vehicles are Continued on page 36

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

How do you use ‘lead reporting’?

ne of the biggest misconceptions about Matt Darby works for AutoPlay, which eg ‘appointments booked and Olead management is specialises in lead management tools that kept’. that it’s merely the tracking and work on desktop and mobile devices. 3. It needs to identify recording of lead activity. That’s To find out more, call 09 361 1505. whether all customer data is not lead management – its lead being captured – this can be reporting. Lead reporting has its measured by reporting on data place but it’s just a means to an end. It quality. It’s impossible to communicate helps you make decisions on your lead with the 80% of ‘lost leads’ if you have management process, but if it’s viewed not accurately captured their contact in isolation it’s just digital noise. details. Even with a view to using lead report- Lead reporting will also reveal wheth- ing to drive improvement in the lead er these things are getting done or not – management process, it can become which will help with training. At AutoPlay overwhelming. It’s all very well to we have taken this a step further with an preach that lead reporting should be ‘automated daily health check report’. used to make decisions, but how exactly This report is emailed to the manager can that be achieved? on a daily basis and identifies three key To start with, at AutoPlay we recom- areas that ensure dealerships can target mend to our customers that they iden- Identify Goals the 80% of ‘lost leads’ – scheduled and tify a lead management philosophy (or To drive this focus it means that lead completed calendar appointments, multiple philosophies) to follow. Some reporting has three main goals: updating the progress, and showing the examples of this are: 1. It needs to identify whether all number of leads loaded. • Target the approx. 80% of leads that leads are being entered – this can enquire but don’t purchase from be measured either by a count of the KPIs you number of leads loaded to your lead With these three KPIs delivered to • Focus on increasing the number of system, or by comparing conversion to the manager every day, he or she can test drives test drive and sales to your sales team instantly see which sales people are • Target the 50% of test drive leads or known benchmarks. It’s known that sticking to the task, and which need that don’t result in a sale test drive conversion is roughly 40% and some reminding. This saves time spent • Focus on the marketing activity that sales conversion is roughly 20%-25% tracking this information down and generates the best conversion rates. (according to Deloittes and AutoPlay helps management with one-on-ones Once your strategy is known it customer data). If sales conversion is with their sales team. dictates what it is you want to get out showing at 50% it’s a sure sign not all Whatever your goals are for lead of lead reporting. For example, if your leads are being entered. management you need to identify goal was to ‘target the approx. 80% of 2. It needs to identify whether all them in order to also identify the key leads that enquire but don’t purchase leads are being updated – this can be outcomes you want to measure using from you’, then this means that lead measured one of two ways, depend- lead reporting. Once you understand reporting needs to clearly identify who ing on the lead management system why you are looking at graphs and the 80% are – which in turn drives the you have in place. You can track all the reading spreadsheets, it starts to lead management behaviour of ensuring stages the lead has been through i.e. transform the information from merely all leads are captured, and all leads are ‘awaiting action’, ‘meet and qualify’, and numbers into signposts, helping your updated with where they are at in the ‘test drive’. Alternatively you can also re- dealership make decisions and drive sales process. port on whether action has been taken - performance.

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

Relevant best practices

here was a time when owner operators/DPs/GMs First, adopting other would take time out to regularly attend sales and dealerships best practices Tmarketing benchmark courses, run by either business can improve efficiency and accounting or marketing service providers. effectiveness, but doing More recent thinking has thrown these gatherings under so isn’t the answer to the the spotlight and asked the question as to whether these challenges auto retailing faces, for four reasons: benchmarking best practices courses have any relevance in 1. Dealership efficiency is just theoundation f for future in- the fast-paced and ever-changing automotive retail environ- novations. ment. So just what is relevant by way of best practices in one 2. Copying competitors’ practices isn’t enough to stay dealership when compared to another? ahead of rapidly changing technology and consumer Some would say, not a great deal. Within the digital expectations. marketing space the onus is on each and every dealership to 3. Competition in this industry, historically local, is expand- initiate its own unique set of effective business practices, that ing geographically due to the acceleration of the online in turn can be rolled out seamlessly by all business model. key dealership people. 4. Best practices that work in some Think of the way the All Blacks Peter Aitken areas, and with some management play their particular style of rugby. On [email protected] teams, may be inappropriate elsewhere, the afternoon of Saturday, October or 021-940 318 or other managements may be unable 31 at Twickenham their style of rugby to execute them. was good enough for them to post an Second, dealerships need to think historic back-to-back win, and become about who in the organisation is re- the first nation to win the World Cup three times. Their style sponsible for creating and championing dealership-initiated of play is without peer. innovation. Some see this as being up to the dealer owner; They do not rely on any best practice benchmark formula. others believe all employees need to see it as their role. But They do not rely on copying so-called best rugby practices neither approach seems complete. from other top rugby nations. Rather, they apply their own unique brand of rugby that is based on the cultural under- Beyond those two issues around innovation, several other pinnings unique to the team, advanced player skill sets, plus areas emerged as major concerns, these being: years of individual player experiences. • There is a division between new car dealers, on the one It becomes very difficult for any other rugby-playing na- hand those who do their own thing to differentiate them tion to adopt any AB best practice, as they do not have the from other dealerships selling the same brand, and on same rugby cultural heritage, or the crafted inherent player or the other hand those dealerships following what is laid coaching skills. Other teams often have to start from scratch down by the distributor/manufacturer. and initiate a style that best suits them. • Dealerships need to know what customer and vehicle With dealerships it is no different, there is no one style data they are responsible for, and when others are using or best practice that can magically provide an operational it with access to their information. solution to a particular dealership operation. • Dealerships need to better differentiate their digital and A recent article penned by J Ferron of Automotive News physical services from their competitors. entitled: ‘Helping dealerships go beyond best practices to • Dealerships must find ways to ffseto the continuing ero- next practices’ highlighted the new way of business thinking sion of gross profits arising from selling over the internet. that could be put in place by dealer managers. • Customer relationship management is dead. The cus- The common goals being to put in place with innovative tomer now actively manages the relationships. business practices, boost profits, cut costs, simplify opera- • It is possible for dealerships to leverage collaborations tions and satisfy consumers rising expectations. Arising with digital marketing suppliers, to help strengthen their from a series of US seminars over the past three years that brand images while protecting their customers’ data Automotive News and Ally have run for senior dealer man- security and privacy. agers, there is general agreement on the need to innovate How far advanced will your dealership be in the field of in order to thrive, but that raised two concerns. innovative next practices come Rugby World Cup 2019?

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 19 TRADE DIRECTORY

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

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AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 21 F&ITALK Proudly brought to you by the market leaders Doing the ‘basics’ will make you more money

aving just spent some time in showing there is nothing hidden in the a business forum with a large By Tony Neems contract, and it’s a well known fact that Hgroup of business managers, National sales people won’t buy from people they inevitably the conversation always leads manager of Autosure don’t trust. back to getting the basics right in order It’s important at this stage not to to effect a successful sale. push for the customers’ acceptance of And in many cases, the key to ef- After the usual pleasantries, it is im- all additional products in the contract. fective F&I penetration is very much portant that the business manager very You can cover this off when you get to dependant on a quality handover. quickly identifies the customers’ needs, understanding what you have heard I recently read an article that sug- and makes sure the additional products from the customer and aligning it with gested that like a relay race, winning in the finance contract offer the right their needs. the F&I profit race comes down to a solutions for the customer. The next step is to simply ask the perfect customer handover from the At this stage it is important to fully question: “Which product options do sales team, and a strict adherence to a disclose all aspects of the loan. Before you want?’ This assumptive question structured process. Skip any part of the disclosing the additional products into makes saying ‘yes’ easy for a customer proven process and you will inevitably the loan, it is important that the cus- who already wants a particular product drop the baton. tomer is made aware of the principal or group of products as part of the deal. Take a minute to think about what and interest payments. In most cases If you receive a ‘no’ at this stage happens in your dealership once the you will gain the customers trust by there are a number of carefully script- customer has made the decision ed words you can use to change to purchase. It is rare that in a busy a ‘no’ into a ‘yes’. For example: “ dealership that you can get the That surprises me. Earlier I was customer in front of the business doing something very important. manager immediately, leaving time I was listening and I heard what for doubt to creep its way in. you said. There were a couple So, as part of a structured hand- of things I thought were critical, over from sales to the F&I, and a especially after something you way to keep the purchaser focused said earlier.” on their purchase, is to hand to The customer is more likely to them a ‘welcome pack’. Included Franchise August September October engage and listen to you if they in this pack, and on the front page, feel you have listened to them. It Finance 36% 40% 41% could be a photo of the dealership is important to refer them back to MBI 34% 39% 41% with a ‘welcome to the family’. ‘something you said earlier’, as it Included in the pack could be PPI 7% 10% 12% will allow them to understand why a letter from the dealer principal GAP 16% 20% 18% they need the products you have thanking them for their business MVI 11% 13% 17% included in the contract. and any prelim forms that may Used/ Import August September October It’s important that sales and be required to be filled in by the Finance 38% 40% 33% F&I are deliberate and structured purchaser. Again this is all done to MBI 42% 47% 46% to ensure that full F&I profits are keep the focus on the purchase PPI 15% 14% 16% extracted from every opportunity and opening the door for the F&I GAP 12% 27% 28% presented. If the above process manager to start his or her process. does not work for you then struc- MVI 11% 18% 8% The longer you leave the customer ture a process that does and follow Profit per waiting for the business manager, August September October it religiously. unit sold the less likelihood there will be of The benefits to you personally Franchise $903.00 $991.00 $932.00 getting full F&I penetration in to and to the dealership will be ten the deal. Used/Import $986.00 $1,021.00 $1,073.00 fold.

22 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz

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www.mainstreaminsurance.co.nz | 0800 674 678 Is cash king?

n previous articles I’ve spoken about the importance of selling finance and insurance products, how much it can Ireally add to the bottom-line of your dealership and the value of finance and insurance sales to your customer, your dealership and to your long-term relationship together. It’s referred to as F&I for good reason – you generally have to sell the ‘F’ before the ‘I’, so in this article I want to focus on how to sell finance – and often to the customer who doesn’t want dealer finance.…. at least not at first. Fact - 3 out of 5 customers that walk on to your dealer- ship today and say they’re paying cash to purchase a motor vehicle are in fact borrowing funds from somewhere else. Why do they say they’re a cash customer? Because: 1. Perception - they think their bank offers better rates By Steve Owens 2. Education - they are of Provident told (by their bank), Insurance through general advertising and direct communications that their bank is their best source of borrowing 3. Belief – ‘Cash is King’. They think (and their bank is telling them) that if they say they’re a cash customer they will have better negotiating power with you – really?? 4. Pride - some don’t like to admit to you that they don’t have the money 5. Ignorance - some really aren’t aware you have a finance facility available in your dealership, or how competi- tive and convenient your facility is (after all you’re a car dealer, not a bank – right?). Fact - Your bank is a good source of future funding – so why use a good source of future funding when your custom- er can use your dealer finance facility right now to purchase their new vehicle and keep their bank facility available for future needs (weddings, 21sts, overseas travel, emergencies, etc). Fact – your dealer finance facility is competitive, conveni- ent and confidential. One of the most common reasons people attend our F&I training seminars is to learn more effective techniques to convert the so-called ‘cash customers’ – and with practice and discipline, it’s not difficult. Before you even begin the process of trying to cash-con- vert, it’s important to learn as much as you can about your customer by engaging in conversation with them, let them talk more than you, learn as much as you can about them and then try to gain some common ground. Ask open ended questions like: “Where are you taking your new car this weekend?” The value of this type of ques- tion is, not only do you learn something about them (to help you build rapport) but it also reinforces ownership. Ask: “How are you intending financing the purchase of your new vehicle?” If they say cash you might express amaze- ment or concern that they would consider using cash to Continued on page 36

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

USED IMPORTS Import growth BROUGHT TO YOU BY: ‘marginal’

he steady growth in brand, down 3.8% to 2565 the market for used passenger cars, 23% of the Timport cars finally hit market. the wall in October – grow- Nissan was second on ing just 0.4%. 1940, down 8.1% for a 17.4% The first half of the year share. saw double-digit growth, but Mazda was next on 1867, the last two months saw that followed by Honda on 1261 drop to 8% growth, then 4%, and Subaru on 647. lowed by Nissan and now this flat-line result. In commercials, Toyota on 124 and Mazda on 57. The result saw 11,149 ve- lead on 376 units, up 10.5% The Nissan Tilda, Mazda hicles registered, from 11,105 for a 53.9% share, fol- Axela and Suzuki Swift were Its stock is focused a year ago. the most popular passenger around the $10,000 mark, For the year, passenger models, the Toyota Hiace with vehicles like Honda registrations remain up topping the commercial Fits and Mazda Axelas, said 13% at 119,312. market. Nathan McColl, but some In the com- Levin’s Ross McColl Mo- “rainy, inclement weather” mercial market, tor Company is hoping for hasn’t helped. registrations were the nice sunny weather that “Last month was okay,” he up 5% to 736. draws out its core clientele said, “and enquiry rates are Toyota was the of retirees. Continued on page 26 most popular import USED IMPORT COMMERCIAL MAKES OCT OCT' % Mkt USED IMPORT COMMERCIAL MODELS MAKE Movement '15 14 Change Share OCT OCT MAKE MODEL MAKE MODEL '15 '14 TOYOTA 378 342 10.5 53.9 NISSAN 124 136 -8.8 17.7 TOYOTA HIACE 247 TOYOTA HIACE 244 MAZDA 57 42 35.7 8.1 MAZDA BONGO 51 NISSAN CARAVAN 54 MITSUBISHI 31 30 Up 1 3.3 4.4 NISSAN CARAVAN 51 TOYOTA REGIUS 43 FIAT 21 9 Up 5 133.3 3.0 TOYOTA REGIUS 32 MAZDA BONGO 37 ISUZU 21 23 -8.7 3.0 NISSAN VANETTE 25 NISSAN VANETTE 30 FORD 17 32 Down 3 -46.9 2.4 TOYOTA TOYOACE 25 TOYOTA TOWNACE 17 CHEVROLET 16 15 6.7 2.3 TOYOTA DYNA 24 TOYOTA DYNA 16 HINO 11 20 Down 2 -45.0 1.6 FIAT DUCATO 20 NISSAN NAVARA 15 HOLDEN 11 11 Down 1 0.0 1.6 NISSAN NV200 20 ISUZU ELF 14 OTHER 49 41 19.5 7.0 TOYOTA ESTIMA 20 MITSUBISHI CANTER 13 TOTAL 736 701 5.0 100.0

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 25 STATSTALK USED VEHICLES

USED IMPORTS Import growth BROUGHT TO YOU BY: ‘marginal’

Continued from page 25 definitely up - now all we need is some sun.” USED IMPORT PASSENGER MAKES He agreed the All Blacks’ World Cup win will help Market MAKE OCT'15 OCT'15 Movement % Change the country generally. Share “Even if you’re not a rugby fan, it’s good for the TOYOTA 2565 2638 -2.8 23.0 economy,” he said, “and if the perception around the NISSAN 1940 2110 -8.1 17.4 economy is that it’s strong, the motor industry will MAZDA 1867 1726 8.2 16.7 do well.” HONDA 1261 1085 16.2 11.3 SUBARU 647 517 Up 1 25.1 5.8 West Auckland’s Vision Auto Sales has noticed SUZUKI 632 691 Down 1 -8.5 5.7 things aren’t quite as rosy as recent years, but has BMW 459 457 0.4 4.1 been maintaining sales numbers. MITSUBISHI 394 408 Up 1 -3.4 3.5 “The halcyon period we’ve enjoyed for a few VOLKSWAGEN 391 427 Down 1 -8.4 3.5 years has gone away a bit,” says Vision’s Tim Mar- AUDI 200 207 Up 1 -3.4 1.8 shall, “but we’re all in the same boat. You can sell MERCEDES-BENZ 189 228 Down 1 -17.1 1.7 FORD 112 the same number of vehicles, but it’s what you’re 131 -14.5 1.0 VOLVO 79 72 9.7 0.7 making out of each one that’s important - and it’s LEXUS 55 28 Up 4 96.4 0.5 getting harder. HYUNDAI 40 61 Down 1 -34.4 0.4 “The changes in the exchange rate obviously MINI 40 38 5.3 0.4 means fewer cars are coming in, and any idiot isn’t HOLDEN 36 25 Up 3 44.0 0.3 as able to try and do it themselves. I actually prefer it CHEVROLET 34 43 Down 3 -20.9 0.3 when it’s a modicum hard - it sorts the wheat from JAGUAR 30 26 15.4 0.3 LAND ROVER 25 29 Down 3 -13.8 0.2 the chaff.” OTHER 153 158 -3.2 1.4 AROUND THE COUNTRY TOTAL 11149 11105 0.4 100.0 OCT OCT % DISTRACT '15 '14 CHANGE USED IMPORT PASSENGER MODELS WHA 235 253 -7.11 MAKE MODEL OCT'15 MAKE MODEL OCT'14 AUC 5496 5460 0.66 NISSAN TIIDA 520 SUZUKI SWIFT 568 HAM 676 782 -13.6 MAZDA AXELA 506 TOYOTA COROLLA 553 THA 79 58 36.2 SUZUKI SWIFT 501 NISSAN TIIDA 528 TAU 456 466 -2.15 ROT 116 114 1.75 HONDA FIT 458 MAZDA AXELA 504 GIS 31 50 -38 MAZDA DEMIO 451 MAZDA DEMIO 377 NAP 233 202 15.3 TOYOTA COROLLA 360 SUBARU LEGACY 292 NEW 182 159 14.5 SUBARU LEGACY 327 HONDA FIT 291 WAN 73 73 0 TOYOTA WISH 324 MAZDA ATENZA 278 PAL 281 271 3.69 MAZDA ATENZA 290 TOYOTA VITZ 272 MAS 64 53 20.8 MAZDA MPV 252 VOLKSWAGEN GOLF 254 WEL 941 811 16 VOLKSWAGEN GOLF 249 TOYOTA WISH 236 NEL 187 187 0 TOYOTA ESTIMA 188 MITSUBISHI OUTLANDER 201 BLE 54 63 -14.3 MITSUBISHI OUTLANDER 184 HONDA ODYSSEY 198 GRE 27 25 8 TOYOTA VITZ 169 MAZDA MPV 193 WES 7 8 -12.5 BMW 3 SERIES 167 TOYOTA ESTIMA 184 CHR 1439 1528 -5.82 TIM 97 92 5.43 HONDA ODYSSEY 149 BMW 3 Series 178 OAM 19 25 -24 TOYOTA IST 146 NISSAN DUALIS 178 DUN 300 300 0 NISSAN NOTE 145 MAZDA PREMACY 168 INV 156 125 24.8 NISSAN MURANO 144 NISSAN NOTE 153 TOTAL 11149 11105 0.4 MAZDA PREMACY 139 NISSAN BLUEBIRD 148

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26 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz STATSTALK USED VEHICLES

USED IMPORTS New and used car BROUGHT TO YOU BY: arrivals still strong

here were 8623 new It may be unlikely that mercial vehicle arrivals con- only 207 vehicles behind the car and 12,388 used numbers for November tinue to flood in across New full year’s tally in 2014. Tcar arrivals across and December will better Zealand wharves. There was a total of New Zealand wharves in the last year’s results that saw There were 2167 new light 25,859 new light commercial month of October. 100,594 new and 136,797 commercial vehicles (under vehicle arrivals in 2014, so it The 2015 year to date tally used arrivals for the full 2014 3500kg GVM) that arrived in is more than likely that figure is now 84,421 for new cars, year. October 2015 bringing the will grow by the year ending and 123,847 for used cars. New and used light com- year-to-date tally to 25,652, December 30, 2015.

USED IMPORT PASSENGER MAKES – THIS YEAR AUDI BMW CHEVROLET DAIHATSU FORD HOLDEN HONDA HYUNDAI MAZDA MERCEDES MITSUBISHI NISSAN PEUGEOT SUBARU SUZUKI TOYOTA VW OTHER TOTAL 15-Jan 220 472 60 20 173 32 1160 59 1992 229 511 2012 24 618 775 2648 420 366 11791 14-Jan 208 328 54 25 139 23 920 16 1655 155 363 1779 6 425 549 2206 311 308 9470 % diff 6 44 11 -20 24 39 26 269 20 48 41 13 300 45 41 20 35 19 25 15-Feb 190 475 81 18 169 30 1120 38 1678 200 388 1779 18 561 684 2414 403 326 10572 14-Feb 189 346 54 20 98 20 1015 18 1510 142 350 1619 12 361 550 2258 298 295 9155 % diff 1 37 50 -10 72 50 10 111 11 41 11 10 50 55 24 7 35 11 15 15-Mar 276 585 58 12 167 29 1240 54 1942 250 479 2076 25 655 772 2804 486 403 12313 14-Mar 177 413 61 15 107 17 1124 41 1765 161 371 1842 10 433 617 2441 373 279 10247 % diff 56 42 -5 -20 56 71 10 32 10 55 29 13 150 51 25 15 30 44 20 15-Apr 246 527 67 13 138 47 1179 34 1805 227 431 1753 18 605 653 2468 448 379 11038 14-Apr 196 391 50 12 112 22 1057 36 1524 171 42 365 13 380 560 2217 368 1985 9501 % diff 26 35 34 8 23 114 12 -6 18 33 926 380 38 59 17 11 22 -81 16 15-May 253 599 56 10 153 33 1391 36 1989 264 427 2106 15 739 736 2721 495 392 12415 14-May 210 471 63 8 126 32 1226 44 1783 206 413 2120 18 421 680 2677 399 326 11223 % diff 20 27 -11 25 21 3 13 -18 12 28 3 -1 -17 76 8 2 24 20 11 15-Jun 286 585 40 16 105 36 1403 28 2048 258 482 2132 14 677 711 2746 484 364 12415 14-Jun 240 469 49 15 115 27 1119 38 1718 161 417 2128 10 415 661 2532 358 288 10760 % diff 19 25 -18 7 -9 33 25 -26 19 60 16 0 40 63 8 8 35 26 15 15-Jul 269 629 45 23 150 40 1422 31 2219 281 519 2453 22 797 850 3152 527 462 13891 14-Jul 233 483 41 18 130 22 1278 41 1881 201 440 2393 16 462 775 2871 408 359 12052 % diff 15 30 10 28 15 82 11 -24 18 40 18 3 38 73 10 10 29 29 15 15-Aug 255 588 51 26 121 41 1198 30 1962 213 446 2136 14 694 746 2725 446 369 12061 14-Aug 213 462 46 20 122 1182 40 1780 186 398 2208 19 488 688 2667 426 343 11288 % diff 20 27 11 30 -1 1 -25 10 15 12 -3 -26 42 8 2 5 8 7 15-Sep 217 526 46 11 116 43 1261 41 1876 199 388 2057 22 650 651 2745 445 373 11667 14-Sep 228 496 37 11 126 31 1097 44 1791 197 404 2183 15 452 660 2605 436 360 11142 % diff -5 6 24 0 -8 39 15 -7 5 1 -4 -6 47 44 -1 5 2 4 5 15-Oct 200 459 34 23 112 36 1261 40 1867 189 394 1940 21 647 632 2565 391 338 11149 14-Oct 207 457 43 16 131 25 1085 61 1726 228 408 2110 21 517 691 2638 427 339 11105 % diff -3 0 -21 44 -15 44 16 -34 8 -17 -3 -8 0 25 -9 -3 -8 0 0 YTD 15 2412 5445 538 172 1404 367 12635 391 19378 2310 4465 18665 193 6643 7210 26988 4545 3772 119312 YTD 14 2101 4316 498 160 1206 249 11103 379 17133 1808 3606 18747 140 4354 6431 25112 3804 4882 105943 %diff 15 26 8 8 16 47 14 3 13 28 24 0 38 53 12 7 19 -23 13 COMPETITIVE FINANCE. Tel: (09) 369 5276 PERSONAL SERVICE. www.autofinancedirect.co.nz

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 27 STATSTALK NEW VEHICLES

Heat coming out of commercials?

he previously explosive growth in the new commercial market appears to be waning. T New commercial registrations, released today by the NZ Transport Agency, were down 2% for the month to 3052 units from 3113 this time last year. That is despite a big push by the Ford Ranger, and the Toy- ota Hilux running down towards its upcoming new model. Registrations of passenger vehicles were up 8.1% against October 2014 to 9634 units, from 8910. The overall market for the month was up 7% to 12,686. Passenger registrations are up 5% for the year to 79,872 vehicles. So far this year 32,498 commercials have been registered. In the passenger market, Toyota leads on 2741 units, up The market for the year has now tipped over the 100k 14.4% from 2395 a year ago for a 24.6% market share. mark, to 112,184 – meaning the market may see 140,000 In second, Holden recorded 992 registrations, up 2.7% for units. an 8.9% stake. Mazda was third on 907, a huge 46.1% jump, followed by NEW PASSENGER MAKES Hyundai on 687 and Ford on 594. In commercials, Ford leads off the back of the Ranger, OCT OCT % Market MAKE Movement but its volume was actually down 9.1% to 628 from 691. '15 '14 Change Share The brand held 20.2% of the market. TOYOTA 2741 2395 14.4 24.6 Toyota was second on 583 units, down 17.5% from 707 HOLDEN 992 966 2.7 8.9 MAZDA 907 621 Up 2 46.1 8.1 last year. HYUNDAI 687 673 Down 1 2.1 6.2 Holden was this on 313 commercials, followed by Mit- FORD 594 667 Down 1 -10.9 5.3 subishi on 245 and Nissan on 210. SUZUKI 400 373 Up 1 7.2 3.6 The Ford Ranger remained Continued on page 29 NISSAN 395 336 Up 1 17.6 3.5 MITSUBISHI 366 427 Down 2 -14.3 3.3 NEW COMMERCIAL MAKES OCT OCT % Mkt HONDA 284 317 -10.4 2.5 MAKE Movement KIA 265 244 Up 1 8.6 2.4 '15 '14 Change Share VOLKSWAGEN 253 307 Down 1 -17.6 2.3 FORD 628 691 Up 1 -9.1 20.2 SSANGYONG 226 90 Up 5 151.1 2.0 TOYOTA 583 707 Down 1 -17.5 18.7 SUBARU 191 154 Up 1 24.0 1.7 HOLDEN 313 252 24.2 10.1 BMW 185 199 Down 2 -7.0 1.7 MITSUBISHI 245 131 Up 2 87.0 7.9 MERCEDES-BENZ 178 134 32.8 1.6 NISSAN 210 142 47.9 6.7 JEEP 161 132 22.0 1.4 ISUZU 196 168 Down 2 16.7 6.3 AUDI 121 173 Down 4 -30.1 1.1 MAZDA 121 104 Up 1 16.3 3.9 FIAT 97 55 Up 5 76.4 0.9 MERCEDES-BENZ 107 70 Up 4 52.9 3.4 SKODA 92 85 Down 1 8.2 0.8 FIAT 98 81 21.0 3.1 LAND ROVER 80 56 Up 2 42.9 0.7 VOLKSWAGEN 63 123 Down 3 -48.8 2.0 OTHER 419 506 -17.2 3.8 OTHER 488 512 Up 3 -4.7 15.7 TOTAL 9634 8910 8.1 100.0 TOTAL 3052 3113 -2.0 100.0

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28 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz STATSTALK NEW VEHICLES

Continued from page 28 segment with 34% market the monthly top-selling commercial vehicle model with 561 share for the month of Oc- vehicles registered, followed by the Toyota Hilux with 364 tober and 34% year-to-date. vehicles and Holden Colorado with 296 vehicles. The small passenger vehicle Year-to-date the Ranger remains the top-selling com- segment was the second mercial vehicle model with 17% market share (5,527 vehicles) biggest segment on 20% followed by the Hilux with 14% (4,521 vehicles) and the Colo- market share for the month rado with 9% market share (3,006 vehicles). of October and 15% year-to- Not surprisingly, given high volume of rental sales, the date. The Pick-up/Chassis Toyota Corolla was the top model overall for the month of Cab segment was the third strongest segment with 17% for October with 1,334 vehicles followed by the Ford Ranger with the month of October, but with 21% market share year-to- 561 vehicles and the Toyota Highlander with 428 vehicles. date remains the overall second-strongest segment. Year-to-date, the top selling models in order are the David Crawford, chief executive of the Motor Industry Ranger, Corolla and Hilux. Association notes the market is headed for a record finish. Sports utility vehicles remain the dominant vehicle sales “Registrations of new vehicles has averaged a staggering 11,237 a month year to date, and if this pace NEW COMMERCIAL MODELS continues, the industry is will smash last OCT OCT year’s record sales of 127,352 new vehicles MAKE MODEL MAKE MODEL '15 '14 by about 7,000 units,” says Crawford. Crawford noted to AutoTalk that, while FORD RANGER 558 FORD RANGER 627 TOYOTA HILUX 364 TOYOTA HILUX 514 commercial sales have softened, they HOLDEN COLORADO 296 HOLDEN COLORADO 235 continue to drive the market. He says the MITSUBISHI TRITON 245 TOYOTA HIACE 175 strength of the dollar has yet to bite the NISSAN NAVARA 210 NISSAN NAVARA 142 market, and with strong tourism, rental cars TOYOTA HIACE 207 ISUZU D-MAX 110 are in demand. ISUZU D-MAX 124 MAZDA BT-50 104 MAZDA BT-50 121 MITSUBISHI TRITON 103 MERCEDES-BENZ SPRINTER 92 FIAT DUCATO 79 NEW AROUND THE COUNTRY FIAT DUCATO 88 SSANGYONG ACTYON SPORT 75 % DISTRICT OCT'15 OCT'14 CHANGE NEW PASSENGER MODELS WHA 130 143 -9.09 OCT OCT MAKE MODEL MAKE MODEL AUC 5032 4299 17.1 '15 '14 HAM 479 389 23.1 TOYOTA COROLLA 1334 TOYOTA COROLLA 1257 THA 46 44 4.55 TOYOTA HIGHLANDER 428 TOYOTA YARIS 438 TAU 271 296 -8.45 TOYOTA YARIS 378 HOLDEN COMMODORE 294 ROT 108 80 35 TOYOTA RAV4 362 SUZUKI SWIFT 266 GIS 40 45 -11.1 MAZDA MAZDA3 278 TOYOTA RAV4 263 NAP 146 178 -18 HOLDEN CAPTIVA 270 HOLDEN CRUZE 243 NEW 127 133 -4.51 HOLDEN COMMODORE 268 TOYOTA HIGHLANDER 243 WAN 70 42 66.7 HYUNDAI IX35 258 MAZDA MAZDA3 233 PAL 185 212 -12.7 MAZDA CX-5 230 FORD FOCUS 230 MAS 44 52 -15.4 SUZUKI SWIFT 209 HONDA JAZZ 218 WEL 557 623 -10.6 MAZDA MAZDA6 165 MAZDA CX-5 211 NEL 86 73 17.8 FORD MONDEO 153 HYUNDAI IX35 181 BLE 54 48 12.5 HYUNDAI SANTA FE 150 HYUNDAI SANTA FE 173 GRE 18 6 200 SSANGYONG KORANDO 145 MITSUBISHI OUTLANDER 159 WES 3 1 200 HOLDEN BARINA 143 VOLKSWAGEN GOLF 149 CHR 1860 1888 -1.48 HONDA JAZZ 135 MAZDA MAZDA2 112 TIM 50 55 -9.09 NISSAN X-TRAIL 131 MITSUBISHI LANCER 112 OAM 19 11 72.7 NISSAN QASHQAI 124 HOLDEN CAPTIVA 111 DUN 220 192 14.6 HYUNDAI TUCSON 123 NISSAN QASHQAI 106 INV 89 100 -11 MAZDA MAZDA2 133 MAZDA MAZDA2 114 TOTAL 9634 8910 8.13

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AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 29 STATSTALK NEW VEHICLES Australian market close to record year ew car sales in Australia were time, it is expected that car sales will growth of the SUV market, which is up strong again in October with again top 1.1m for the year. There is also 15.9% compared to sales in the period Nbuyers taking home 94,321 new a strong possibility that it will overtake January to October 2014. passenger cars, SUVs and commercials. that number and hit the 2013 record of The total SUV market increased Year-to-date sales are up 3.6%, reaching 1,136,227 units sold. 20.5% in October 2015, compared 957,153 and a 3.4% boost compared to The Federal Chamber of Automotive to October 2014. Small SUV sales, in October 2014. Industries today released its October particular, increased 37%, medium SUV With just two months left of 2015 figures and said that this year’s strong sales increased 20.1% and large SUVs and needing 142,847 car sales in that sales have again been led largely by the increased by 11.8%. NEW PASSENGER MAKES ALFA ROMEO ALFA AUDI BMW CHERY CHRYSLER DODGE FORD WALL GREAT HOLDEN HONDA HYUNDAI JEEP KIA LAND ROVER LEXUS MAZDA MERCEDES-BENZ MINI MITSUBISHI NISSAN PEUGEOT PORSCHE SKODA SSANGYONG SUBARU SUZUKI TOYOTA VOLKSWAGEN VOLVO OTHER TOTAL 15-Jan 12 148 149 14 4 31 502 2 1280 356 746 109 198 123 52 722 191 64 469 528 101 74 89 87 116 337 1941 343 36 186 9010 14-Jan 27 180 195 19 12 44 827 10 853 360 665 96 243 92 40 521 200 63 353 444 100 44 75 78 158 527 1467 414 45 141 8293 % diff -56 -18 -24 -26 -67 -30 -39 -80 50 -1 12 14 -19 34 30 39 -5 2 33 19 1 68 19 12 -27 -36 32 -17 -20 32 9 15-Feb 3 151 193 16 2 44 514 0 765 252 694 123 247 47 56 674 155 54 472 371 71 30 75 106 172 289 906 372 46 157 7057 14-Feb 19 179 174 12 4 42 523 13 782 230 616 84 258 78 50 532 109 46 404 388 87 13 54 72 144 423 762 316 34 124 6572 % diff -84 -16 11 33 -50 5 -2 -100 -2 10 13 46 -4 -40 12 27 42 17 17 -4 -18 131 39 47 19 -32191835277 15-Mar 9 181 165 31 9 54 461 0 794 434 669 129 304 108 63 732 217 64 611 434 63 46 90 100 239 483 970 420 33 162 8075 14-Mar 26 205 171 23 10 54 602 11 764 367 774 100 277 78 65 621 157 46 640 408 114 17 83 83 184 505 1048 359 48 152 7992 % diff -65 -12 -4 35 -10 0 -23 -100418 -14 29 10 38 -3 18 38 39 -5 6 -45 171 8 20 30 -4 -7 17 -31 7 1 15-Apr 7 155 195 36 6 34 509 0 576 261 587 86 295 49 53 597 130 37 373 357 55 36 73 114 155 373 794 288 22 120 6373 14-Apr 31 159 199 20 9 32 441 13 662 200 571 115 231 66 28 485 120 48 334 469 92 22 67 70 125 309 764 308 37 123 6150 % diff -77 -3 -2 80 -33 6 15 -100 -13 31 3 -25 28-2689 23 8 -23 12 -24 -40 64 9 63 24 21 4 -6 -41 -2 4 15-May 18 170 214 32 6 30 562 15 798 196 531 108 230 68 43 524 191 34 354 415 65 21 67 68 126 406 996 371 30 113 6802 14-May 2 171 160 10 10 22 614 14 692 234 685 46 259 40 40 403 159 39 232 261 95 16 53 45 138 406 1072 301 21 107 6347 % diff 800 -1 34 220 -40 36 -8 7 15 -16 -22 135 -11 70 8 30 20 -13 53 59 -32 31 2651-90-7234367 15-Jun 16 163 144 17 4 86 466 0 870 285 773 146 292 70 47 697 173 58 691 281 48 30 117 145 245 404 2171 369 38 175 9021 14-Jun 12 196 174 54 3 31 714 17 960 165 940 104 299 84 47 543 183 41 617 307 103 36 90 120 153 475 1448 410 25 166 8517 % diff 33 -17 -17 -69 33 177 -35 -100 -9 73 -18 40 -2 -17 0 28 -5 41 12 -8 -53 -17 30 21 60-1550-105256 15-July 8 130 162 12 0 66 513 0 647 358 539 140 282 83 52 724 178 40 413 348 53 62 73 111 199 352 1179 312 39 197 7272 14-Jul 25 168 147 25 5 46 602 12 805 421 571 113 241 72 40 529 138 34 405 373 57 20 76 68 152 394 1030 307 46 149 7071 % diff -68 -23 10 -52 -100 43 -15 -100 -20 -15-6 24 17 15 30 37 29 18 2 -7 -7 210 -4 63 31 -11 14 2 -15 32 3 15- Aug 10 166 128 9 1 62 413 0 721 331 664 147 306 77 45 743 153 41 407 444 62 33 93 172 210 332 1512 291 48 131 7752 14-Aug 31 161 147 34 6 61 494 7 837 372 599 134 217 83 40 487 160 47 380 340 111 27 70 84 130 345 1169 289 46 175 7083 % diff -68 3 -13 -74 -83 2 -16 -100 -14 -11 11 10 41 -7 13 53 -4 -13 7 31 -44 22 33 105 62 -4 29 1 4 -25 9 15-Sep 5 187 182 12 3 102 618 0 1068 353 700 131 265 71 57 891 194 63 604 425 50 31 81 111 258 314 1471 314 56 218 8835 14-Sep 12 184 181 28 6 71 479 37 1044 388 636 123 256 57 54 371 180 52 515 496 107 12 68 108 175 302 1582 327 34 497 8382 % diff -58 2 1 -57 -50 44 29 2786 -66 80 -79 115 -72 0 1550 -48 -65 1062 -17 -90 -71 575 63 139 79387-80-83-565 15-Oct 10 121 185 14 7 40 594 0 992 284 687 161 265 80 50 907 178 58 366 395 79 29 92 226 191 400 2741 253 41 188 9634 14-Oct 17 173 199 27 15 58 667 23 966 317 673 132 244 56 55 621 134 61 427 336 79 33 85 90 154 373 2395 307 32 161 8910 % diff -41 -30 -7 -48 -53 -31 -11 -100 3 -10 2 22 943-94633-5 -14 18 0 -12 8 151 24 7 14 -18 28 17 8 YTD 15 83 1576 1637 172 38 554 5047 1070 7776 3522 6135 1383 2481 774 1357 6685 1597 1069 4655 3536 627 466 914 1427 2015 4766 13486 3013 1679 79872 YTD 14 218 1775 1801 274 76 469 5911 158 8471 3016 6576 1109 2496 734 462 5234 1572 472 4429 3976 915 245 735 841 1501 4059 12661 3408 377 1801 75772 %diff -62 -11 -9 -37 -50 33 -15 577 -8 17 -7 25 -1 5 194 28 21265-11-3190 24 70 34 17 7 -12 -7 5

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30 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz STATSTALK SECONDHAND

Compliance made simple Dealer trade up ...since 1999

he number of used 17,698 units, while dealer while trade-in volume rose vehicles sold by trad- purchases were down 0.9% 5% to 315 bikes. Ters rose in October to 12,416. The public market was up - as the used import market The public traded 42,304 7.2% to 1527. slowed. vehicles during the month, Dealer truck sales were The number of dealer- up 6.5% on October 2014. up a strong 12.8% to 2326 18.6% to 1756 units. to-public registrations In the bike market, dealer units, while dealer purchas- Public-to-public transac- rose 4.5% for the month to sales fell 8.4% to 404 units, es jumped nearly a fifth - by tions rose 7.8% to 5908.

SECONDHAND REGISTRATIONS − OCTOBER 2015 SALE TYPE WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL Cars 2015 Public to Trader 216 4720 1152 80 592 97 112 380 214 149 608 90 1131 235 137 35 1755 136 8 439 308 12594 Public to Public 1840 14750 3269 590 2045 834 384 1350 954 527 1635 395 2906 915 416 173 98 5170 522 164 1878 985 41800 Trader to Public 560 6484 1469 233 995 318 160 550 389 206 716 154 1527 343 189 88 26 2302 249 59 657 388 18062 Cars 2014 Public to Trader 256 4745 1207 103 607 129 97 428 237 109 822 90 1174 241 106 44 1854 150 24 563 296 13282 Public to Public 1838 14181 3069 525 2035 680 362 1304 1029 398 1630 330 2761 983 383 218 104 5271 513 220 1774 887 40495 Trader to Public 564 5891 1453 231 945 267 160 587 422 182 797 181 1613 349 217 107 27 2399 238 83 781 410 17904 Cars % Change Public to Trader -15.6 -0.5 -4.6 -22.3 -2.5 -24.8 15.5 -11.2 -9.7 36.7 -26.0 0.0 -3.7 -2.5 29.2 -20.5 -5.3 -9.3 -66.7 -22.0 4.1 -5.2 Public to Public 0.1 4.0 6.5 12.4 0.5 22.6 6.1 3.5 -7.3 32.4 0.3 19.7 5.3 -6.9 8.6 -20.6 -5.8 -1.9 1.8 -25.5 5.9 11.0 3.2 Trader to Public -0.7 10.1 1.1 0.9 5.3 19.1 0.0 -6.3 -7.8 13.2 -10.2 -14.9 -5.3 -1.7 -12.9 -17.8 -3.7 -4.0 4.6 -28.9 -15.9 -5.4 0.9 Motorcycles 2015 Public to Trader 4 124 49 26 1 1 5 3 2 19 5 67 7 4 26 1 1 14 4 363 Public to Public 51 545 129 30 114 46 11 62 70 15 56 11 131 72 16 12 1 251 32 7 67 30 1759 Trader to Public 17 146 45 9 37 6 3 10 13 2 19 4 40 12 6 1 1 42 4 1 13 8 439 Motorcycles 2014 Public to Trader 4 126 44 1 32 1 8 7 2 18 7 58 9 16 1 18 3 355 Public to Public 46 446 132 23 103 23 10 47 50 12 73 15 132 63 16 13 3 261 22 12 48 38 1588 Trader to Public 13 133 42 5 26 9 4 12 13 9 18 8 46 11 7 1 2 37 3 3 17 3 422 Motorcycles % change Public to Trader 0.0 -1.6 11.4 -18.8 0.0 -37.5 -57.1 0.0 5.6 -28.6 15.5 -22.2 62.5 0.0 -22.2 33.3 2.3 Public to Public 10.9 22.2 -2.3 30.4 10.7 100.0 10.0 31.9 40.0 25.0 -23.3 -26.7 -0.8 14.3 0.0 -7.7 -66.7 -3.8 45.5 -41.7 39.6 -21.1 10.8 Trader to Public 30.8 9.8 7.1 80.0 42.3 -33.3 -25.0 -16.7 0.0 -77.8 5.6 -50.0 -13.0 9.1 -14.3 0.0 -50.0 13.5 33.3 -66.7 -23.5 166.7 4.0 Trucks 2015 Public to Trader 58 654 202 18 92 20 30 69 47 30 131 23 97 55 39 13 234 47 1 78 62 2000 Public to Public 366 1820 550 118 350 141 79 203 170 80 275 66 397 172 101 39 12 740 102 33 283 178 6275 Trader to Public 114 751 251 58 187 68 53 103 87 48 140 30 167 69 42 27 6 365 49 13 130 73 2831 Trucks 2014 Public to Trader 47 494 175 18 102 20 59 80 27 14 119 20 96 57 30 5 209 34 2 74 68 1750 Public to Public 357 1623 532 119 356 110 77 246 186 66 264 58 314 173 81 58 31 825 99 40 277 157 6049 Trader to Public 85 672 272 40 143 43 53 100 70 18 138 27 149 53 49 22 5 360 35 12 106 97 2549 Trucks % change Public to Trader 23.4 32.4 15.4 0.0 -9.8 0.0 -49.2 -13.8 74.1 114.3 10.1 15.0 1.0 -3.5 30.0 160.0 12.0 38.2 -50.0 5.4 -8.8 14.3 Public to Public 2.5 12.1 3.4 -0.8 -1.7 28.2 2.6 -17.5 -8.6 21.2 4.2 13.8 26.4 -0.6 24.7 -32.8 -61.3 -10.3 3.0 -17.5 2.2 13.4 3.7 Trader to Public 34.1 11.8 -7.7 45.0 30.8 58.1 0.0 3.0 24.3 166.7 1.4 11.1 12.1 30.2 -14.3 22.7 20.0 1.4 40.0 8.3 22.6 -24.7 11.1

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AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 31 STATSTALK BIKES

Auckland City misses out on Riders coming off sports- some of the dirt-bike sales bikes are its main market Bikes still up that the sunshine brings, but - “none of us like to admit self-proclaimed salesman it, but we do get old and ike registrations in Harley Davidson was extraordinaire Craig Stephens have to make more sensible October did not quite second on 94, up 28.8% for says they’re pretty happy decisions occasionally,” jokes Bshow the strength an 11.9% market share, with with recent performance. Stephens. they have shown in recent Suzuki tied, down 2.1%. The bike that’s getting The market is go- months – but were still on Yamaha was fourth on 66, the most interest is the ing strongly as the sum- the rise. Kawasaki fifth on 55. new GSX1000S - which he mer weather improves, he New bike registrations The Honda NBC110 BN describes as the most high- says, noting that Harley- were up 3.8% to 791 units was top new model on tech bike the company has Davidson’s performing well from 762 in October last 47 bikes, followed by the ever made. and that another Japanese year. For the year registra- Yamaha YZF R3AF on 20 and “It’s got more tech, it’s a manufacturer has registered tions have hit 7108 units. Harley Davidson Street 16 comfortable cruiser sports a lot of “postie bikes.” Interestingly, usual market 500 on 17. with a really good 1000cc leader slipped to second, Used motorcycle regis- four-cylinder and it’s only with Honda taking first spot trations were up 8.2% for available in matte grey,” he on 99 registrations, up 28.6% the month to 224 from 207. said. “Worldwide demand has for a 12.5% stake. Coleman Suzuki in been huge, but we catch up on all the colours in Christ- NEW BIKE MODELS mas.” MAKE MODEL OCT'15 HONDA NBC 110BN 47 NEW BIKE MAKES OCT YTD OCT % Market YAMAHA YZF R3AF 20 MAKE HARLEY DAVIDSON STREET 16 STREET 500 17 '15 '15 '14 Change Share % TNT MOTOR ROMA 2T 16 HONDA 99 901 77 28.6 12.5 SUZUKI GW250 INAZUMA LAM 15 HARLEY DAVIDSON 94 549 73 28.8 11.9 SUZUKI UZ50 X 14 SUZUKI 94 1196 96 -2.1 11.9 APRILIA ETX 150 13 YAMAHA 66 611 83 -20.5 8.3 KAWASAKI ER 300A 11 KAWASAKI 55 442 60 -8.3 7.0 FACTORY BUILT LINTEX VIVA 10 TRIUMPH 37 376 69 -46.4 4.7 KTM 200 DUKE 10 BMW 36 266 38 -5.3 4.6 FACTORY BUILT 32 238 12 166.7 4.0 USED BIKE MAKES KTM 30 250 28 7.1 3.8 MAKE OCT'15 OCT'14 % CHANGE MARKET APRILIA 29 210 7 314.3 3.7 HARLEY DAVIDSON 73 55 32.7 35.3 MOPED 25 138 20 25.0 3.2 HONDA 31 17 82.4 15.0 TNT MOTOR 21 238 36 -41.7 2.7 TRIUMPH 21 16 31.3 10.1 VESPA 18 122 12 50.0 2.3 BMW 17 14 21.4 8.2 HYOSUNG 16 124 13 23.1 2.0 SUZUKI 13 16 -18.8 6.3 DUCATI 15 167 17 -11.8 1.9 YAMAHA 12 9 33.3 5.8 FORZA 15 143 15 0.0 1.9 KAWASAKI 9 15 -40.0 4.3 PGO 12 96 17 -29.4 1.5 DUCATI 8 28 -71.4 3.9 INDIAN 11 103 20 -45.0 1.4 VICTORY 7 4 75.0 3.4 ZNEN 10 44 0 1.3 KTM 5 6 -16.7 2.4 PEUGEOT 9 86 0 1.1 OTHER 28 27 3.7 13.5 OTHER 67 808 69 -2.9 8.5 TOTAL 224 207 8.2 100.0 TOTAL 791 7108 762 3.8 100.0

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32 |61771 AUTOTALK Auto File Banner NOVEMBER Print Ad 180x56mm 2015 | www.autotalk.co.nz PRESS.indd 1 1/11/13 4:20 PM STATSTALK TRUCKS

Isuzu Trucks retains new market dominance Vehicle Inspection NZ despite slowing market

suzu Trucks has main- opposed to 4311 at the tained its market leader- same time in 2014. Iship in the new heavy The Hino truck brand truck market with 910 follows in second place with registrations in the year to 550 registrations (down October 31, as opposed to from 620 in 2014) and 767 in the previous corre- Mitsubishi Fuso takes third sponding period. place with 545 year to date Despite overall market registrations (down from registrations dropping by 8% 581 in 2014). from 468 units in October Fourth placed Mercedes- 2014 to 430 last month in Benz has seen its registra- the heavy truck market, tions improve, its up from Isuzu Trucks increased its 327 registrations to 338 year monthly share by 24% with to date. 72 registrations as opposed It was ahead of last Octo- to 58 in the previous corre- ber with 55 registrations as sponding period. opposed to 30. tions as opposed to 104 in increased from 1165 to 1421. New truck registrations Used imported trucks, the previous corresponding Toyota leads this market with have slowed, and in the year however, have bounced back period. 271 registrations, followed by to October 31 there have up by 26% for the month, Year-to-date used import- Isuzu on 257, and Hino with been 4156 registrations as there were 132 registra- ed truck registrations have 135.

NEW TRUCK MAKES USED TRUCKS MAKES OCT OCT % % of YTD YTD OCT OCT % % of YTD YTD MAKE MAKE '15 '14 Change Market '15 '14 '15 '14 Change Market '15 '14 ISUZU 72 58 24.1 16.7 910 767 TOYOTA 41 18 127.8 31.1 393 271 HINO 57 55 3.6 13.3 550 620 MITSUBISHI 20 15 33.3 15.2 178 115 MERCEDES-BENZ 55 30 83.3 12.8 338 327 ISUZU 19 17 11.8 14.4 266 257 MITSUBISHI FUSO 54 77 -29.9 12.6 545 581 HINO 11 20 -45.0 8.3 190 135 UD TRUCKS 27 28 -3.6 6.3 221 212 NISSAN 10 11 -9.1 7.6 123 124 FIAT 26 18 44.4 6.0 188 158 FIAT 5 3 66.7 3.8 19 22 DAF 21 20 5.0 4.9 178 171 DAF 4 1 300.0 3.0 16 16 KENWORTH 18 25 -28.0 4.2 166 145 MAZDA 4 1 300.0 3.0 33 24 VOLVO 16 27 -40.7 3.7 221 234 ALEXANDER DENNIS 3 2.3 5 4 FACTORY BUILT 15 0 3.5 51 32 FACTORY BUILT 2 1.5 17 8 OTHER 69 130 -46.9 16.0 787 1065 OTHER 13 18 -27.8 9.8 181 189 TOTAL 430 468 -8.1 100.0 4156 4311 TOTAL 132 104 26.9 100.0 1421 1165 Vehicle Inspection Specialists • Warrant of Fitness • Certificate of Fitness • Certification • Road User Charges • Registration & Relicencing • Drivers Licences • Vehicle Information Vehicle Inspection NZ • Vehicle Appraisal & Change of Ownership • Exhaust Emission Testing

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AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 33 TRIBUNALTALK

The serious damage everyone missed

Guy v Glenfield Wholesale Limited t/a Real Wholesale Cars

n this case, the purchaser, The purchaser had a purchaser drove the vehicle damage to the sub frame at who lives near Palmerston friend in Auckland inspect to her home in Palmerston the front of the vehicle and INorth saw the vehicle, a and test drive the vehicle and North. While driving on the that she had also taken the 2005 Toyota Estima, adver- he reported that it did not Waikato Expressway the pur- vehicle to VTNZ who told tised on TradeMe in June appear to have any faults and chaser noticed an unusual her the vehicle should not 2015. The advertisement drove well. The purchaser road noise and stopped the have passed a border check. listed among its features did not require the trader vehicle. On inspecting the The purchaser’s email ‘AA Pre Purchase Inspection to provide a copy of the AA wheels, she found the left asked the trader how it done’, ‘AA Certified Mileage’ Pre Purchase Inspection front tyre was flat and the wished to proceed. Later and ‘AA Appraised’.” report. She agreed to buy right front tyre was half flat the same day the purchaser The purchaser says she the vehicle for $9,500 and and the spare tyre was also emailed the trader photo- was attracted to the vehicle collected it. flat. graphs of the left side of because it had an AA Pre The vehicle had a new The purchaser’s husband the sub frame showing the Purchase Inspection and warrant of fitness issued by bought a pump, pumped up damage. because its mileage was AA Autozone Services Ltd. the tyres and the purchaser In a written report VTNZ Certified. The following day the drove the vehicle to North says: “There is a substantial Waikato Tyre Centre Ltd, amount of distortion to the which found both front tyres LH side of the lower front had perished valve stems sub frame. The metal is also NYK VEHICLE causing the tyres to go flat. torn in two places. The space saver also had a In my opinion this should EXPRESS SERVICE faulty valve and was flat. Be- have failed for Compliance fore replacing the tyres, the and a WOF as structural purchaser claims she sent a damage. It appears to be text message to the trader’s historic (sic) damage due Reliable fortnightly manager but received no to the degree of corrosion vehicle logistics response. around the damaged area. I service JAPAN to NZ The cost of the replace- have taken two photographs ment tyres and an after which will be kept on file. hours call out charge was I am happy to be con- PORT TO PORT / $440. The trader has refused tacted regarding this. DOOR TO DOOR to reimburse the purchaser Paul Dekker” to Auckland, Christchurch, with that sum and claims The purchaser produced Wellington, and Nelson the replacement of the tyres two photographs which she should have been discussed says were taken by VTNZ with it before the tyres were that show the vehicle’s sub Full MPI inspection replaced. frame with what appears to The purchaser says that be impact damage, tears in service from Kawasaki, the vehicle’s brakes felt soft the metal and corrosion in Osaka, Nagoya and Moji and on July 10 she took the the torn metal sub frame. vehicle to her mechanic who On July 15 the purchaser bled the brakes and drew sent the trader an email SUN PHOENIX CO.,LTD. + Marine Insurance available the purchaser’s attention to saying she wanted the For eFFIcIent custoMer Focused servIce the vehicle’s damaged sub trader to take the vehicle frame. back because it was “not fit contact NYK On July 13 the purchaser for purpose” and informing Auckland Branch 0800 695 546 Christchurch Branch 0800 695 2424 sent the trader an email the trader it would need to email: [email protected] notifying it that her me- transport the vehicle back chanic had found structural Continued on page 35

34 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz TRIBUNALTALK

The Tribunal considers the the WOF was issued. purchaser to be a credible The Tribunal’s Assessor witness. is confident that the corro- The trader claimed that if sion the sub frame exhibits the damage to the sub frame around the damaged areas had been present when the is advanced and would take vehicle passed compliance at least several months to be inspection it would most in its present state. It is also certainly have been de- possible that the damage tected. occurred while the vehicle Continued from page 34 short distance into her rural The Tribunal has taken was being test driven by an- to Auckland because it was property near Palmerston what may be seen as a sig- other potential buyer or by a not safe to drive due to the North the vehicle is driven nificant position on this: member of the trader’s staff structural damage. on sealed roads to take her “This may be true but the between October 2014 and The purchaser made con- children to school and to get Tribunal has seen previous June 2015. tact with the AA, who initially to her work as an unsworn instances of faults not being The Tribunal tends to told her that the vehicle had employee workforce coordi- detected during compliance think the fault was more never had an AA Appraisal. nator with NZ Police. inspection and accepts that than likely present when the This has since been ac- The trader’s representa- faults can be overlooked vehicle was supplied to the knowledged by the AA to tive says he gave a copy of during compliance inspec- purchaser by the trader. be incorrect, one was done the AA Appraisal report to tion.” The Tribunal upheld on December 8, 2014, at the person who inspected The Tribunal also noted the rejection, ordering the 116,159kms and this appraisal the vehicle for the purchaser. the willingness of the trader’s trader to refund the cost done for the trader expired He says that in the course warrant of fitness issuer, Au- of the vehicle, the cost of on February 8, 2015. of compliance by Vehicle tozone Services Ltd, to offer the tyres, the cost for the The AA informed the Safety Systems on October to pay the cost of repairing purchaser to travel to Auck- purchaser that they had not 3, 2014, two used tyres were the sub frame and thinks this land, and collect the vehicle done an AA Pre Purchase In- replaced on the front wheels tends to suggest that the from Palmerston North at spection of the vehicle. The and rear sill damage in the damage was present when its cost. purchaser sent the trader an jacking area was repaired, a email purporting to reject low volume vehicle certifi- the vehicle on July 17, and cate obtained and a wheel Dealer Information Notice another email on August alignment was done. Dealer Information Notice 3 rejecting the vehicle for The trader’s representa- MTA MEMBERSHIP INFORMATION structural damage includ- tive says it is unlikely that ing tears in the frame and any damage to the sub Cost Interests requested a full refund of frame was missed as part of National Subscription of motor vehicle dealers a priority her purchase price. either the border check or $700 Excl GST & Branch fee Yes No The purchaser gained during compliance inspec- Brand Year Capacity an estimate of$1,552.73 to tion. Strong & nationally recognised Since 1917 4000 members repair the damage. The vehicle also passed MTA is NZ’s largest dealer representative group: Franchise The purchaser says she a warrant of fitness inspec- notified Autozone Services tion on June 10 before it was dealers, used dealers, motorcycle dealers, and truck dealers Market analysis - regular, Ltd - who had issued the ve- supplied to the purchaser Mediation Yes No hicles Warrant of Fitness - of and he says it is unlikely the accurate and detailed the damage to the sub frame damage to the sub frame Advocacy - pushing the causes HR Advice Yes No and sent them photographs was missed during all of this  for your industry of the sub frame. checking. The trader thinks Benefits - save money with MTA stationery Yes No She says that Autozone the vehicle may have been  key business partners promptly contacted her and damaged by the purchaser. IT Advice Business Range of Need a mentor offered to pay to have the In its decision, the Tribunal Yes No Managers newsletters Yes No sub frame replaced. accepted first, that at the  In reply to questions from time of sale the vehicle’s tyre Industry Specialist training Business Advice Yes the Tribunal, the purchaser valves had perished making research Yes No  No said that she was the sole the tyres unsafe. Second, FURTHER INFORMATION ABOUT MTA driver of the vehicle and that that the vehicle has serious Website Events / get Free phone she had not been involved structural damage that was www.mta.org.nz togethers Yes No in any accidents involving found to exist on July 10 a CONTACT US the vehicle since she had little less than one month af- bought it. ter the vehicle was supplied Tony Everett 04 381 8827 Second, that apart from a to the purchaser.

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 35 NEWSTALK

Is cash king?

Continued from page 24 tract vs the interest earned on their savings, but more-so, purchase of a motor vehicle. their possible asset strength after the loan has been repaid Your first objective is then to determine if they really are a due to the discipline of compulsory savings (via the pay- cash buyer or if they’ve just borrowed funds from somewhere ments on their credit card) vs voluntary savings. else (so you know if you’re dealing with a cash conversion or If you’re interested in learning more about our cash con- a bank conversion). version process and increasing your finance sales through Ask: “When you say cash are you talking about cold hard more effective techniques to convert cash/bank customers, savings or are you borrowing from somewhere else?” call me now and let me help you introduce the Provident If you establish it really is their own cash you can then profit factor into your business. proceed with the cash conversion process, which includes:- • understanding as much as you can about the customer and their circumstances • their possible future needs for finance A MONTH IN THE • helping them understand that you have a finance facil- ity available in the dealership that is competitive and convenient and that allows them the opportunity to LIFE OF… own their new vehicle without disturbing their cash (that they may have saved hard for). NB Don’t always assume Continued from page 17 though that cash necessarily means savings. Transport fuels and fleet management conference • implementing our cash conversion exercise to illustrate We provided speakers and facilitators at this recent the benefits of borrowing from you and maintaining their two-day conference in Auckland, which was opened by returns on their cash in the bank. the minister of transport, and attended by industry rep- It’s important to note that the benefit of a cash conver- resentatives. It was an excellent opportunity to make the sion exercise is not just to show a customer how little the case for used vehicles, particularly EVs, to be included in difference is between the interest paid on your credit con- fleet purchase and leasing decisions.

Ports of Auckland: ‘Future Auckland’ study We are part of the wider group informing this study, representing the whole vehicle import industry. Our role is to ensure that any recommendations and Anywhere. Anytime. decisions are based on facts, not just subjective opinions about the vehicle import operations of the port. Too Your most important dealership information many uninformed comments such as “the port is just accessible from any desktop, tablet or mobile used vehicle parking lot,” can influence public opinion and potentially Auckland council’s decisions, unless they device. Faster. Easier. Smarter. are put into perspective against the background of the economic contribution made by the port and the vehicle import industry.

Plus, business as usual… The issues and activities detailed above are just some of our recent work; at the same time it’s ‘business as usual’: So, on reflection, a month in the life of the IMVIA is varied, interesting, involves travel, and is at times very pressured when we have multiple deadline to meet…and all with only three staff! The IMVIA has had to constantly change and reinvent itself over its 27 years, in order to properly represent and advocate for our industry, and our current activities are quite different from the activities when the association was formed. But we’re arguably just as relevant, and just as neces- 0800 623 687 sary, as when the used vehicle import industry was first www.motorcentral.co.nz getting started.

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

October 26 bane and begun underwriting AUSSIE TALK transport, logistics and marine AutoTalk’s senior Carboodle cops ASIC liability insurance in Australia Aussie journalist conditions Max Pichon looks DIARY and New Zealand. back at the major Surveillance by ASIC saw condi- The announcement came stories in the past tions imposed on Green Light off the back of BHSI recently Max Pichon Max month on our Auto Group, which trades as Austrailian introducing marine cargo AutoTalk website Carboodle. (ocean and inland), cargo stock – autotalk.com.au The Australian Securities throughput (STP), carrier goods and Investments Commission in transit, carriers liability and discovered that the systems marine project cargo coverages the Japan Used Motor Ve- and procedures Carboodle had in both countries. October 5 hicle Exporters Association in place were not sufficient to (JUMVEA), were on the tour, comply with consumer credit Vehicle affordability assisted by the Australian Im- laws, including meeting its October 29 ‘at all-time high’ ported Motor Vehicle Industry responsible lending conditions. It also failed to obtain writ- Vehicle sales continued their Association, sponsors, and Queensland puts ten consent to enter a prop- upward trend, with growth up other members of the used squeeze on lemons vehicle trade. erty when repossessing leased 6.8% compared to the same The Queensland Government Included in the delegation vehicles. time last year. looks set to introduce so- were chairman Hiroshi Sato Australians purchased called ‘lemon laws’ to protect and vice-chairman Yoshiharu 101,392 vehicles last month, consumers from buying faulty Warashina. with the year-to-date total at October 28 vehicles. 862,832. $50m for BMW Berkshire Hathaway Its final decision depends Sales were on the up for on depending on recommen- ACT, NSW, Queensland, Tas- dealership aims at Australia, NZ dations to be handed to state mania and Victoria, while NT, BMW is to revamp a Rushcut- Berkshire Hathaway Specialty parliament at the end of No- SA and WA recorded drops of ters Bay site the eye-watering Insurance Company (BHSI) vember, following an inquiry 13.2%, 3.9% and 8.8% respec- cost of $52.8 million. opened its newest office in Bris- into their adoption. tively. The huge figure is said to be the largest-ever investment for a Sydney dealership.The appli- October 6 cation to design and build the new dealership was lodged, Personal loans fuel and includes extensive demoli- tion of existing buildings. new car sales The application proposed Aussies wanting new cars are an 18m building envelope applying for personal loans in featuring two showrooms, a Specialists in their droves, according to a workshop area, parking, of- new report. fices, parts storage, a training pre‑shipment inspections With the car market sitting centre and other ancillary a healthy 3.6% higher than in Japan & UK facilities. this time last year, with small  Full border inspections to medium SUVs growing at Cheaper Euro car over 20%. FCAI chief executive Tony imports coming: MP  Authorised MPI inspections Weber said that vehicle af- Minister Andrew Robb wel- fordability is at an all time comed the overnight release  Authorised NZTA inspections high – and the marketplace is of the European Commission’s certainly listening. (EC) new trade and investment  Odometer verification strategy, meaning cheaper European cars.  Pre-export appraisal October 13 The EC will seek authorisa- tion from the EU’s member  Vehicle history reports Japanese industry countries to negotiate a Free Trade Agreement (FTA) with group on Australian Australia. tour Robb, Minister for Trade Leaders of the Japanese used and Investment, said the an- vehicle export industry visited nouncement is an important Australia to research the coun- initial step towards launching try’s automotive scene and its an Australia-EU FTA. potential as a market. JEVIC NZ An 18-strong group from 09 966 1779 www.jevic.co.nz

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 37 DIESELTALK

October 12 October 19 Smart container NZTA slams asbestos weighing solution allegations New Zealand Transport Agency wins design award bosses are fuming at accusa- talk editor DIESEL Dunedin tech company tions that practices around Robert Barry Bison was awarded the gold asbestos handling and trans- looks at the month DIARY gone by on pin award for its innovative porting aren’t safe.

dieseltalk.co.nz product design called Weigh- Reports around work being Robert Barry Robert -daily news for the ing Jacks at the Best Design carried out unsafely at central heavy transport and Awards. equipment sectors. Christchurch sites were incor- The Bison Weighing Jacks rect, said highway manager are the world’s first portable for NZTA Colin Knaggs. solution for calculating the “The public’s safety has tailed the number of vehicles weight of a shipping contain- never been at risk,” he said. caught up in its international October 1 er in situ, rather than trans- “The Transport Agency’s emissions scandal, which in- porting the container by truck contractors are scrupulous in cludes the Amarok Pick up and Mainfreight ‘legend’ to a weighbridge. handling waste from all sites to the Volkswagen Caddy van. and co-founder dies protect people using the state Volkswagen New Zealand Mainfreight co-founder and highway system, the people general manager Tom Rud- company ‘legend’ Christchurch October 14 we employ working on or near denklau told DIESELTalk that philanthropist Neil Graham the material and people living 4639 of its New Zealand sold died after a long battle with ill Direct shipping or working near these sites. vehicles are included. health. service to Americas The logistics company an- nounced his death on its news and Europe from October 21 website October 7 Centreport It said that 71-year-old The Wellington port operator Top NZ Scania team Fuel saving Graham had been a huge part has announced the start of a programme used of the Mainfreight family since now head to Sweden new container shipping service 1979 when he accepted an A team of workmates from that will take goods from cen- by 7% of heavy fleet invitation from Bruce Plested the Cable Price Christchurch tral New Zealand directly to diesel users to join the operation as joint branch won the Scania Top the Americas and Europe. The Government will continue managing director. Team’s last regional semi-final The new service offered by to focus on trucks and heavy in Guangzhou, China. CentrePort Wellington comes commercial vehicles which The Christchurch team was on the back of a 19% increase it says to use about a third of October 2 announced the winner, and in the port’s container trade transport energy. Team Kinetic from Singapore over the last two years. The heavy vehicle sector Hellaby focuses was the runner-up. Both will Commencing in Novem- consumes about 20% of all on automotive, head to Sweden for the final ber, Centreport Wellington transport energy – about one round of the global competi- says that shipping companies billion litres of diesel per an- equipment, and tion in December. CMA-CGM and Marfret will be num, says Transport Minister energy operating the new ‘Panama Simon Bridges. Listed investment company service’. “Many fleet operators are Hellaby Holdings says it will October 8 not aware they can make narrow future investment into significant savings through fuel automotive, equipment, and oil Truckometer report: October 15 efficiency,” he says and gas and will dispose of its Foot back on the footwear division being Han- Autonomous trucks gas? nahs and Number One Shoes. will solve Singapore October 28 Among the automotive and The two ANZ Truckometer equipment brands owned by indexes lifted in September; driver shortage Jade terminal Hellaby are AB Equipment, traffic flows rose on all but The shortage of bus and Diesel Distributors, NZ Trucks, one road in the light and heavy truck drivers in Singapore has operating system live BNT, Autolign, HCB batteries, traffic indexes. spurred its ministry of trans- in Abu Dhabi Port NZ Brake Co, and Truck and “If the strength in the port to research autonomous Jade Software’s Master Termi- Trailer Parts. month of September can be vehicle operation to cope with nal is now running live at three sustained, the economy may future demand for logistics of seven planned installations well be in for a better second and public transport. for Abu Dhabi Ports. October 5 half,” says the ANZ Truckom- Reuters reports that Sin- Abu Dhabi Ports is replacing eter. gapore recently revealed its its legacy system with Jade’s VW Amarok rolled “The main risks to this pic- future vision of passengers terminal operating system. ture are out of New Zealand’s commuting in driverless buses The recent implementation in diesel emissions control: the El Nino threat and along roads and motorways at Musaffah Port is the third scandal the global outlook,” it says. populated by platoons of port to go live with the new Volkswagen New Zealand de- autonomous trucks following technology. a single driver.

38 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz EMPLOYMENTTALK

Disparity between needs and resources

ast month. we received perspective. Other wealthy again attempting reinstate- an employer’s chances of several calls from em- countries often compared to ment of automotive techni- resolving an unfiled vacancy Lployers concerned that, New Zealand share similar cians on the skills short- with offshore workers. Clear- regardless of actions they rates of unemployment. ages lists, the decades old ly, the same issues could took, it was proving difficult As an example, the most discussion of how many occur with a variety of motor to secure skills. Common recent statistics from Aus- unemployed technicians industry occupations. concerns showed that short- tralia that I can locate show there are surfaced. The figure In our opinion, the em- ages had spread to multiple 6.2 percent unemployment, quoted this time was 146 ployment outlook for skilled job descriptions and that USA 5.5%, UK 5.4%, and unemployed technicians New Zealanders is extremely staff were hard to source. Canada 7%. It will probably nationally. When I challenged bright if you are employed in Job listings increased be no surprise to learn that this and asked whether the the motor industry. A candi- and job boards also report- all of these countries have Senior Manager had actually date who is well skilled and ed increased job listings. similar problems to New viewed any of the employ- has a reasonable employ- A South Island job expo Zealand in locating a variety reported there were more of skills staff for motor indus- jobs than job seekers. try employers. It will probably be no surprise to learn that In complete contrast to Essentially, all these the experiences of employ- countries share a common all of these countries have similar problems ers, the unemployment privileged position in that to New Zealand in locating a variety of skills rate rose to 6.0 percent in we all have relatively low staff for motor industry employers. the September 2015 quar- unemployment. ter; up from 5.9 percent While I cannot com- for the June 2015 quarter. ment on the accuracy of There were 3000 more the breakdown of unem- ment backgrounds of the ment background seems to unemployed people in the ployment data held in other claimed 146 unemployed be able to locate employ- quarter, bringing the number countries, in New Zealand it there was admission that, ment just about anywhere. of unemployed to 151,000; seems that the bigger issue no, he had not viewed the In the motor industry, for the highest number since the for employers is the accu- backgrounds. now, there seems little rea- June 2013 quarter. racy of how the unemployed The situation we there- son for being unemployed Tasman/Nelson/Marlbor- describe their work skills. fore endure is that incor- aside from a lack of skill, or ough/West Coast had the This is an issue because rectly categorised automo- an employment background only statistically significant many employers are de- tive technicians remain that is less than ideal. We change in regional unem- pendent on supplementing showing on work and acknowledge that there are ployment rates with an skill shortages with skilled income records as unem- plenty of exceptions to this increase to 5.7 percent (up migrant workers. Work ployed and nobody seems rule but an unemployment 2.1 percentage points). permits/residency may not to be interested in correct- rate of 6% is still low by While most of us will be approved if Work and ing the records. international standards. The share a concern for the un- Income NZ have incorrectly The scenario with techni- current politicking slamming employed, the release of the categorised an employed cians is but one example of our latest unemployment current unemployment sta- person’s skills. how incorrectly categorised rates seems little more than tistics needs to be kept into Last month, while once unemployed can impact point scoring.

Russell Phillips is New Zealand’s most experienced automotive recruiter, and has operated a specialist recruitment company since 1991. He reports for AutoTalk on the employment market monthly. www.automotiveemployment.co.nz

AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 39 GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE SERIOUS ABOUT SERVICE

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