www.autofile.co.nz September 2018
The trusted voice of the auto industry for more than 30 years Industry on high alert Specialised training that’s for stink-bug season proven to increase profits Typhoon hits Japan as importers of used vehicles are being affected by extra biosecurity, transport and cross-rate costs p 11
he automotive supply least seven people and injuring being made at the moment. chain is expected to cope about 200. Traders have been reporting Record with the onset of the high- Logistics companies and lower business activity, the revenue Trisk period for brown marmorated border-inspection organisations dollar’s cross-rate with the yen online stink bugs (BMSBs) – although are now assessing its impact on has tumbled and there’s a lack of teething problems are possible. facilities at Kobe and Osaka and vehicle storage space in Japan. September 1 saw the start of are warning of likely reductions On top of this, extra costs Aston Martin the new season for the are being borne by takes to skies biosecurity threat that importers. Heat- wreaked havoc across treatment surcharges the supply chain earlier currently range from this year. $225-$250 per vehicle p 16 Now heat treatment depending on the of all used vehicles and service provider, land- p 19 machinery from Japan transport prices in New is mandatory, as well as Zealand are rising and approved pathways for the price of shipping – new vehicles, to prevent the High alert – the new or bunker – fuel is rising. stink-bug season bugs getting into New Zealand. has started David Vinsen, VIA’s The measures result from chief executive, says Charge range of 380km the new import health standard in capacity, reports VIA (the despite the short timeframe, with (IHS) released by the Ministry Imported Motor Vehicle Industry the new IHS being released just for Primary Industries (MPI) last Association). three weeks ago, businesses are Autonomous month. Although delays will be well-prepared. world in his Issues facing the supply possible during the stink-bug “It’s still going to be tough, but sights chain have been exacerbated season, which ends on March 30, companies involved say they are by Typhoon Jebi hitting western not as many forward bookings for ready to various degrees,” he told p Japan on September 4, killing at vehicles in Japan as normal are Autofile. “This stink-bug season 22
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skills to industry Directors Editor Brian McCutcheon Darren Risby [email protected] [email protected] ph. 021 455 775 Janet Lane says focus is needed on developing Journalists Darren Wiltshire Sue Brebner-Fox skilled workers for the automotive industry [email protected] [email protected] ph. 021 0284 7428 Lucy Pink n today’s tight And the Mahi in Mana [email protected] Designer labour market where programme provides Adrian Payne Motorsport there aren’t enough funding to employers [email protected] Mark Baker Iqualified technicians to fill to support apprentices [email protected] vacancies, it makes sense aged 18-24, who have Autofile magazine is also available online as a readable file or downloadable as a PDF. that employers reach out to been unemployed for six Subscriptions are available at Autofile Online – www.autofile.co.nz. Back copies are emerging talent. months or more. The pilot also available on the website. The automotive sector is is currently supporting Copyright: Published monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. JANET LANE forecast to need more than Chief executive, MITO 150 people and this will All statements made, although based on information believed to be accurate and 3,400 new workers per year increase to 4,000 in 2019. reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without on average between 2018 and 2022 At MITO, we’re committed to written permission, whether by copying or any other means, is strictly forbidden. to meet new job growth and replace initiatives that focus on engaging All rights reserved. those leaving it. schools and students in the ISSN 0112-3475 (print) ISSN 2350-3181 (online) With only four per cent of industries we support. school leavers going directly into an This year we realigned our apprenticeship or on-the-job training, structure to increase focus on and 40 per cent not progressing to secondary-school engagement, any tertiary education, facilitating and introduced a vocational career pathways for secondary students to adviser to work directly with schools enter the motor-vehicle industry is an in co-ordination with our regionally Vehicle Inspection NZ obvious strategy. based advisory teams. The Got a Trade? Got it Made! We’ve revamped our automotive campaign has gained huge programme StartUp for year 11-13 momentum over the past few years. students. Taking the form of a “mini Entry Certification Designed to raise awareness of the apprenticeship”, it’s a perfect way trades and services industries, it for students to gain valuable work specialists targets secondary-school students, experience along with getting a careers advisers and parents. compelling insight into the industry. Its “earn and learn” message is With just under 25 per cent of supported by BERL research that StartUp students progressing to an shows because apprentices don’t apprenticeship, it works. incur student debt, they’re on an Timing is of the essence with earning pathway immediately. school leavers and their parents This provides them with security currently making critical decisions ahead of their peers at university around earning and learning – and they are in about the same pathways. financial position when they retire. During September, we’re pleased A number of initiatives are in to see a number of automotive progress to help support employers employers getting involved in eight engage school leavers and youth Got a Trade SpeedMeet events, which with apprenticeships. introduce students to prospective The government’s fees-free employers “speed dating” style. • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges initiative provides eligible school We encourage employers to list • Registration & relicencing • Exhaust emission testing leavers and jobseekers two years vacancies on our website without of industry training for free – as delay – it’s free and all entry- opposed to one year for polytechnic level jobs are promoted via our 0800 GO VINZ VINZ.CO.NZ Tel: +64 9 825 0888 and university study. Facebook page. www.jacanna.co.nz www.autofile.co.nz 3 news
[continued from page 1] has come when there are reduced 30-40 minutes with ramp up and said, this is huge volume-based t forward orders because of the way down temperatures included. heat treatment for the first time. the market is here at the moment. Vinsen adds: “That process is “This is huge Given the scale, there are likely to “VIA is monitoring problems fine, but what about downstream be some issues.” when and if they arise, such as effects with about 12,000 units volume-based Willett believes the used- heat-treating electric vehicles a month? This scale-up in import industry from Japan has [EVs] and possible effects on their production is a step-change heat treatment entered a period of significant batteries. We’re working on those overnight. change because of the new IHS. sorts of things. It hasn’t been a case “Whether it goes smoothly for the first “Given issues created by BMSBs of someone dropping a flag when will depend on how time. Given earlier this year, the IHS puts in the season started and it’s all go. companies cope with place measures to ensure no stink- “We’ve had concerns about volumes in Japan the scale, bug threats exist to New Zealand whether shipping companies will and outcomes when from used imports, but even if one allow mixed cargos, and changes vessels arrive, but there are live stink bug is found on-board to sailings and their frequency. the possibility on arrival, a ship will be scrutinised “The industry needs to of delays may be likely to and possibly turned away.” be congratulated, especially mitigated by a be some Willett notes forward bookings biosecurity companies. They have reduction in demand have reduced because “dealers made huge investments without and forward orders. issues” have been reporting sluggish sales knowing what would finally be “The MPI and around the country and this will in the new IHS. They had a good companies based here – Frank Willett, cause cash-flow issues for many”. idea, but that could have changed, have been sending Autohub “Sales have possibly been and millions have been spent more staff to Japan with affected by economic uncertainty designing and building heat- everyone focusing on questions who really and a loss in business confidence. treatment plants.” the job, and there will be knows if the industry is Also not helping is the rate with The new IHS requires vehicles extra costs to be borne by ready for the BMSB season. the yen has slid. Issues are affecting to be exposed to 60 degrees importers.” “We just need to press the market and are resulting in Celsius for at least 10 minutes, Frank Willett, chief the button and hope it about a 30 per cent dip on volumes so the treatment time per unit is executive of Autohub, runs smoothly. That earlier in the year. There are other Typhoon wreaks havoc nvestigations are be carried facilities to ensure shippers and out on the impact on port consignees aren’t disadvantaged.” facilities at Kobe and Osaka Autohub’s Frank Willett believes Iafter Typhoon Jebi left a trail of there is significant damage to devastation in parts of Japan. vehicles and infrastructure at both Warnings have been issued for ports, but full assessments have reductions in vehicle deliveries yet to be completed. to New Zealand with indications “We’re assessing vehicles involved it will at least two weeks before to ascertain which ones have been Car Finance Specialists! normality is resumed. damaged and who they belong to, Moana Blue and Automotive but it’s too early to say. Our offices in We have over 65 years combined industry Technologies Ltd’s operations out of Japan are open, and there have been experience, three branches nationwide Kobe have been severely affected. no reports of our staff being injured.” and a Kiwi “can do” attitude. We offer: General manager Matt Battle Malcolm Yorston, VIA’s told Autofile: “Kobe is one of our technical manager, adds it will • Competitive interest rates seven locations we receive cars at. be a case of how long it takes • Fast, friendly service We will be in a position to receive to repair infrastructure when it • Customised plans to suit cars into this yard in a matter of comes to delays. days. We’re grateful no staff or “There will be reduced capacity contractors were injured, and a with Kobe and Osaka knocked out,” Know your customers are in good vessel loaded a few days before he says. “Compounding this is the hands, get in touch with us today. reducing the number of cars held. heat-treatment regime for stink bugs. “Kobe will likely be fully “I would expect these two Auckland Levin Christchurch functioning within a couple of ports to be up and running in not 0800 88 44 66 0800 263 264 0800 735 562 weeks at the outside. Should the a great length of time. However, I delay be greater, we will subsidise would imagine there will be lower oxfordfinance.co.nz any additional costs incurred to numbers coming out of them for a transfer vehicles to one of our other couple of weeks.”
4 www.autofile.co.nz news
t things that will lead to further season. This previously only applied prices increases for importers.” to vehicles from the US and Italy. Over the past six months, for Used imports from Japan now example, bunker-fuel prices have need to be treated and cleaned jumped by more than 40 per cent. offshore as part of the approved Extra costs are being faced by system. All other imports from car importers with New Zealand other countries covered by the transport and delivery costs IHS during the BMSB season need increasing due to fuel-price rises to be treated or go through an and taxes, while road-user charges approved system. are about to go up. As for moving forward, Vinsen “There are wider implications Automotive Technologies’ heat-treatment chambers says VIA will ensure there are of the MPI’s requirements for New good communication channels Zealand-bound used vehicles,” Grindall would be worried about can meet the new requirements.” between all parties, while regular adds Willett. effects on the industry. There were no issues with teleconferences have been “For example, used vehicles “That would be expensive. We vessels arriving up to September reinstated. destined for Fiji require heat also have to factor in the upcoming 9 and no problems identified He says: “These meetings are treatment, but those for Australia emergency bunker-fuel surcharge. moving forward. about open communication, full don’t. This has caused concerns It has been a challenging time, but “We will keep a close eye on and transparent discussion, and for shipping lines about potential we will meet MPI requirements.” how the processes are working, exchanging useful information. cross-contamination of cargo.” Ken Quigley, director of including staying in close contact “We need experts in Kiwi importers of damaged Jacanna, says: “Our heat-treatment with industry. We’re confident the biosecurity to focus on this issue vehicles for parts or repair may have programme is tracking along well. new rules will significantly reduce and collaborate, and communicate difficulties in continuing supply We are all set up and running, and the risk of imported vehicles as much as possible. as they must be heat-treated. This we’re happy with the results. acting as a vector for BMSBs.” “VIA’s role during the stink-bug is also the case with parts, such “If we do encounter teething Under the new IHS, 14 countries season is to co-ordinate efforts, and as engines, which aren’t easy to issues further down the line, we have been added to the list collaborate between government handle, while some machinery – will do our best to iron them requiring mandatory treatment departments, and interested and such as forklifts – are problematic. out quickly. It’s obviously a new of vehicles during the stink-bug effected businesses.” “The main issue is whether process that our industry hasn’t service providers carry out seen on this scale before.” treatment so they can be Malcolm Jackson says Mitsui imported, and what the extra fees OSK Lines (MOL) will follow all IHS and costs will be.” requirements and MPI guidelines. Nigel Grindall, chief executive “MOL will continue to monitor officer of Moana Blue Shipping for stink bugs in transit to New and Automotive Technologies Ltd, Zealand as to the effectiveness of says implementing heat treatment pathways and treatment facilities correctly and according to MPI approved,” he told Autofile. “We Easy come, Easy buy! guidelines is complex and time- hope the measures are successful ∙ 100% Dealer Direct ∙ One customer - one friendly staff consuming. and we will not see any impact “It has been a long process on shipping like we did during to get to this stage with massive February to May.” Respected company Quality cars ∙ Trusted relationships with our customers ∙ 30 photos taken to show real quality investment – with more people Ports of Auckland says the first on-site, the extra time treatment vessel loaded in Japan during takes, bringing in cars for this to September has an estimated date be done and MPI rules for vehicles of arrival of the 18th. Matt Ball, to be parked in special areas head of communications, says: “It’s afterwards. a wait-and-see situation with all “Our focus is looking after shipping lines working to comply customers. If there’s any slack, with the new IHS to the best of Inspection Friendly staff ∙ Vehicles inspected by experienced staff ∙ Our goal is to exceed your expectations we’re prepared to tackle that. The their ability.” real pressure may come in January The MPI told Autofile it more than September and October. appreciates there were delays in “If there are delays, they may be confirming the new rules, but its from the shipping side with lines discussions with industry have separating new and used vehicles been positive. for at least the first part of the BMSB “We’re not expecting any
season when we will be holding our shipping delays for new vehicles Contact breath due to bugs hibernating.” and machinery,” says a spokesman. 12F Kirara Center Building, 6-1 Nagisa-cho, Izumiotsu-City, Osaka, 595-0055, Japan If the MPI discovers stink “For used vehicles, we are Phone: +81-725-23-8910 ∙ Fax: +81-725-23-8911 http://www.enhance-auctions.com bugs and sends vessels offshore, informed systems in place in Japan
www.autofile.co.nz 5 news Focused on electric uptake
ew Zealand can locally coming to the market next year. acquisition tax reductions from enable a fast take-up The research, which included 2009-12, and automobile tax rate of electric vehicles most light-vehicle distributors, reductions from 2009-10.” N(EVs) through co-ordinated actions included 13 EVs and eight PHEVs The Kiwi market’s progression in – even though the country is a in 2020, although the estimated recent years has provided greater technology taker. number for 2018 has already been consumer choice through sourcing, That’s the view of Dean Sheed, overtaken. a fast-developing infrastructure, board member of Drive Electric and On top of this, Sheed said it development in technology, business general manager of Audi NZ. was important to take on-board trials, and government focus and Sheed took the opportunity marques’ announcements in regards incentives. EV infrastructure has at last month’s EVworld NZ expo to models and strategies for the boomed with ChargeNet citing 98 in Auckland to stress the need for global market in the longer term. existing charging stations, 17 being organisations in the industry to And the government’s role – Dean Sheed built, 26 planned for this year and agree on strategies moving forward from procurement to education 105 by 2019. to support changes coming, such and funding – was one that needed fleet in 2021 was achievable with “Government incentives have as the fleet’s wider electrification to lead by example, and especially “exponential growth” seen over the included extending the road- with the release of more models. around EV infrastructure support past four years, while the numbers user charges [RUC] exemption “Brands in New Zealand and enablement. were ahead of target with the total for light EVs and introducing an continue to push hard to gain “Businesses can also take a expected to be reached by 2020. RUC exemption for heavy EVs,” factory approval for the release of lead role in trials and then fleet Issues affecting EV uptake had added Sheed. “There is work across plug-in hybrid [PHEV] and battery procurement,” noted Sheed. “They will included people’s perceptions, government and the private sector EVs,” Sheed told delegates. become a good supply of used cars which had also been tackled by to investigate bulk purchasing, and According to a Motor Industry post the general three-year term.” fleets – that’s to say range awareness, support to develop and roll out of Association survey, there should He said the government-set target education and understanding public charging infrastructure.” be nine new EVs and seven PHEVs of 64,000 new and used EVs in the – while clear economic benefits He highlighted a nationwide of private and business uses had EV information and promotion broken down barriers. campaign, a contestable fund of Sheed highlighted that past up to $6 million a year to support technological issues included innovation, and allowing EV drivers driving ranges, charging times, to use bus and high-occupancy performance and limited model lanes. “Then there’s a review of selection. Then there had been tax-depreciation rules, ACC levies purchase prices and residuals, and and the method for calculating a lack of charging points. fringe-benefit tax for EVs.” Specialists in It was only in the recent past Looking to the future, Sheed said pre‑shipment inspections that supply was rare. For example, some marques were committed EVs accounted for 0.02 per cent of to all-electric futures. While New in Japan & UK the passenger fleet in 2013 before Zealand was a technology taker, rising to 0.28 per cent in 2014. the country could support or drive Full border inspections The New Zealand market was initiatives nationwide. now dominated by Japanese Authorised MPI inspections “There needs to be a business case imports, Sheed said, although in and openness with manufacturers, Authorised NZTA inspections 2015 some 58 per cent of EVs were infrastructure built, awareness and sold new and 42 per cent were used. communication with business and Odometer verification The pendulum had swung by 2017 government, and acceptance of EVs when 30 per cent were new and to normalise their use.” Pre-export appraisal used accounted for 70 per cent. The market here has been INDUSTRY FORUMS Vehicle history reports highly dependent on supply and EVworld NZ was held at Auckland’s that was now dominated by used ASB Showgrounds from August 9-11 imports with stock accessible at and attracted about 4,400 people – attractive price-points for dealers. up from 2,600 at last year’s inaugural Sheed said: “Japan is the main event in the south of the city. source of used-imports subsidies There were more than 100 and incentive programmes on exhibitors, ride-drive experiences JEVIC NZ EVs. There was the green-vehicle and marques showcasing vehicles, purchasing promotion measure while industry forums covered 09 966 1779 www.jevic.co.nz from 2009-12, tonnage and fleet development, network and
6 www.autofile.co.nz [continued on page 8] Driving great partnerships for over 30 years
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[continued from page 6] Future global milestones Dean Sheed summarised at the EV expo what some marques are planning in the run-up to 2030 as a way to illustrate how the market will expand. 2018: General Motors produces two EVs within 18 months. 2019: All new Volvo models to either be electric or hybrid. 2020: Jaguar Land Rover to electrify its new line-up. 2022: Renault, Nissan and Mitsubishi to produce 12 battery EV models, with Daimler to release 50 electric and hybrid models. 2023: Ford to produce 13 EV models, GM to introduce 20. 2025: BMW to roll out 12 new BEVs. 2030: Volkswagen to electrify its 300-car line-up. Hyundai’s Kona Electric on show at EVworld NZ infrastructure, and local government. level-five EV qualification and Craig Pomare, chief executive The event provided an Janet Lane, chief executive training programme to launch in officer of the Motor Trade understanding of what’s of MITO, the industry training early 2019, which is relevant to light Association (MTA), was another happening overseas and potential organisation for the automotive and heavy-vehicle workshops. panel speaker. learns for New Zealand with sector, was on a forum panel about Lane told Autofile safety was He said EVworld NZ was a good keynote speaker Kellen Schefter, “meeting the needs of the future a key issue when workshop staff opportunity for the MTA to review of the Edison Electric Institute EV retail industry”. dealt with EVs. “While some of our the impact of EVs on its members, in Washington, saying main MITO was successful in its bid existing training programmes include which were responsible for selling, barriers to EV uptake globally to receive funding in last year’s working safely on and around them, fixing and fuelling the fleet. were awareness and education, round of the government’s low- the new programme will be more Pomare was pleased to see charging infrastructure, and emission vehicle project fund to expansive in its service competencies focus on building infrastructure, vehicle cost and availability. develop a qualifications framework allowing qualified technicians to the provision of materials for “We see challenges and for the safe inspection, servicing upskill so they can safely inspect, consumers via the Energy Efficiency opportunities as we head down and repair of EVs, and – with the service and repair them.” and Conservation Authority, and the EV path,” said Pomare. “Dealers project under way – she was keen She added having an EV developing “micro” training material need ongoing access to accurate to spread the message. qualification as part of the for learning specific skills at the information they can provide to “New Zealand’s adoption of automotive career pathway same time as developing the EV consumers. EVs and physical infrastructure to would further entice new workers qualification via MITO. “Repairers need to start the support this is moving rapidly,” to the industry. He was also impressed by supply process of retraining to prepare to said Lane. “We see this as a vital “The rate of progress in the EV across new and used vehicles – with deal with hybrids and EVs, while contribution to the human industry is exciting,” said Lane. “While new cars, in particular – and the service stations need to think infrastructure required for the there will be a need for qualified commitment to going electric across about their offering as we move uptake of EVs and will effectively engine technicians for quite some the range through to luxury vehicles, from fossil fuel to other sources. expand the network of service time, a transition to EVs reinvigorates while there was realistic view on “The key opportunity across providers available to owners, which interest among our pipeline of timeframes for mass adoption of EVs all sectors will be for the early will increase consumer confidence.” new apprentices, and their career with consequential effects on the adopters who get to steal a march MITO is developing a standalone influencers at school and home.” internal combustion engine industry. on the competition.”
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Award-winners on stage at EVworld NZ t ‘CHAMPIONS’ HONOURED that developed a software patch for One of the most celebrated aspects Leafs with 30kWh batteries a few of EVworld NZ was its “champions” months ago to update their systems. with a dealership in Auckland taking It teamed up with GVI Electric to out a title for the second year in a row. provide fixes for current owners. GVI Electric, which is based in Fleet champion of the year was what Penrose, has opened a second EV Foodstuffs NZ. A national strategy centre in Wellington to allow the it championed “brought high company “to deliver better service visibility to EVs delivering groceries to existing owners in the lower supermarkets around New Zealand”. drives North Island as well as assisting Foodstuffs’ submission justified others join EV life”. daily travel was well within EV The judging panel added range for urban fleet requirements, Merv Whiston? the business “shows fantastic and the results of doing so showed Business Development Manager - Canterbury commitment to sales and service significant carbon and cost savings. of its customers as detailed in The EV champion of the year “Working with dealers, helping them to maximise F&I many testimonials submitted as was Martin Kane. The judges said: opportunities has been a passion of mine since I first part of the nomination process”. “Martin is a tireless EV advocate. started to sell cars. I’ve been in the auto industry for The results of an online public poll He’s always at Dunedin and over 30 years, and known Steve Owens since 1989. backed up the judges’ decision. Christchurch EV events, and regular Hayden Johnston, general offers his car for test drives.” I joined the company when Steve established manager, told Autofile: “We’re Whangarei was judged to be Provident Insurance. My clients are a great and incredibly proud to be nominated New Zealand’s most EV-friendly diverse group of people, most of whom I have known and win for a second year. We’ve town with the district council, for many years. They know that I’m highly motivated always done things ‘our way’ Northland Regional Council, and they know that we are committed to helping and it’s nice to know that ‘way’ is Northpower, district health board, them succeed in their business. appreciated by the EV community. local “EV-angelists” and Rev-Up “We don’t do things for the collaborating to pioneer adoption. Why so many new dealers are partnering with awards, but it’s nice for the team In May 2014, Northpower opened Provident. to get appreciation for its hard the country’s first fast-charger. Now At Provident we have a strong partnership culture work. We work hard to do things Whangarei boasts one of the highest with our dealer clients. We don’t see ourselves as properly, we don’t take shortcuts – concentration of EVs in New Zealand. I think that’s essential.” Finally, Steve and Dee West an insurance company but more a part of the motor Another award-winner familiar took out the title for outstanding industry. to the automotive industry is contribution to EVs. They own We have a set of values that drive us and serve as Walter Larason, whose ChargeNet NZ, which develops and our guiding principles. You can’t just talk about your Christchurch-company EVs provides infrastructure – and the values, you have to deliver on them every hour of Enhanced took out the gong for aim is to have 105 fast-chargers every day. That’s what we do, with product training, small to medium-sized enterprises. installed by the end of 2018. systems and support to help generate higher levels The business developed English They advise and work alongside of F&I profitability and customer service. We do what language conversions on Nissan government, the energy sector, we promise and that’s our difference.” Leafs. The judges said: “Any car dealer motor-vehicle industry, business can use this solution to quickly and and schools to boost awareness cost-effectively change the small about the importance of EVs for a dashboard display to English. EVs low-carbon New Zealand. Enhanced has also provided strong The judges – Mike Underhill, technical knowledge and support in Stella Stocks and Elizabeth Yeaman – battery technology.” agreed the fleet wouldn’t have 9,000 www.providentinsurance.co.nz It was the engineering company EVs without the Wests’ work.
www.autofile.co.nz 9 market news Expansion for dealerships olonial Motor Company will commence shortly.” (CMC) is continuing As for CMC’s financials for to invest in new and 2017/18, trading revenue rose Cexpanded facilities for its by 5.8 per cent to $902.1m and dealerships across the country. operating profit jumped by 18.1 The NZX-listed operation has per cent to $37.8m, while net just returned a record trading profit profit before tax was $37.9m – an after tax of $24.75 million for the increase of 17.8 per cent. year to June 30, which is up by 12.5 Macaulay Ford and Mazda in Queenstown will move to Basic earnings per share new premises which are currently under construction per cent on 2016/17. increased by 11.3 per cent to 75.7 “The total new-vehicle industry with its capital developments. refurbished retail service facility cents, while net tangible assets per has continued to run at all-time For example, a new dealership for is close to completion, and the share rose by 8.9 per cent to $5.99. record levels in the 12 months to Macaulay Ford and Mazda is being waterfront brand hubs for Mazda CMC’s directors have declared a June,” says chairman Jim Gibbons. built in Queenstown, and a new and Ford are being fitted out. We fully imputed dividend of 35c per “However, the rate of growth truck preparation facility at Southpac have acquired additional land share. This takes the total dividend has reduced to 2.5 per cent Trucks in Manukau City has been in Lower Hutt adjacent to the for the year to 50c and totalling compared to 14 per cent a year expanded with an extension to the dealership.” $16.3m, which compares to 44c ago. In among this slowing growth, parts warehouse under way. In Christchurch, an agreement and $14.4m in 2016/17. the movement from cars to SUVs “The heavy-truck industry has has been reached with Ōtākaro Looking ahead, Gibbons has continued.” been stronger with 13 per cent Ltd, which is delivering Crown-led says: “There is currently a myriad Despite the retraction, CMC growth year over year,” says Gibbons. anchor projects in the city centre. of mixed messages influencing – which owns 13 dealerships “Southpac – with Kenworth and “This will allow the south- the confidence of business and that primarily focus on Ford DAF – has grown both its volume frame greenway to proceed and consumers that could influence with seven also having Mazda and market share this year. our dealership to be rebuilt on its the medium-term outlook for the franchises – is moving forward “In Wellington, a newly existing site,” says Gibbons. “Work economy and our industry.” Markets close to records evenues from the operating environment, we have motor-vehicle division invested organically and by of Automotive Holdings acquisition when we see value and RGroup (AHG) have boomed over future opportunity.” the past year despite company- This has included gaining A better deal for the wide profits falling. seven dealerships in Australia and The Perth-based company, which two in South Auckland, which owns dealerships in New Zealand, expanded its footprint to nine Motor Vehicle Trade has posted profit before tax of franchises in the city. NZ$127.2 million for its automotive AHG announced in January nFlexible credit facility available to fund arm with revenue climbing by 7.2 it had agreed to acquire the co- vehicles in transit or on your yard per cent to NZ$6.1 billion. located Hyundai and Mitsubishi It has grown its new car and dealerships near its existing Holden nAccess to stock when you want to buy, truck market share to about 6.7 and Nissan sites in Manukau. not only when you have the available cash per cent across the Tasman and “This acquisition adds two three per cent in this country important volume brands to our nFree up your capital and grow “leaving room for further New Zealand portfolio,” says John your business expansion in both markets as McConnell, managing director. “It nOnly available to registered value-driven opportunities arise”. aligns with our automotive growth motor vehicle traders The markets for new vehicles strategy to acquire and aggregate in both countries “remain close dealerships in and around our to record levels despite recent existing dealerships. softening of demand in Australia”. “These are well-run businesses During the year, AHG’s and brands that can be rolled franchised automotive division into an existing AHG hub with suffered a $31.59m drop in finance initiatives we can put in place to Ph: 09 320 5646 and insurance commissions. drive revenue and cost synergies Contact us now to find out more www.autobridge.co.nz “Despite the challenging across both dealerships.”
10 www.autofile.co.nz market news Online trader revenues rocket rade Me Motors has been 24.33 cents up from 23.76c last year described as “the star for a final dividend of 10.5c. The performer” for the website board has also decided to pay a companyT after reporting a 12.7 per “Superb special dividend of 22c per share. cent increase in revenue during results are Chairman David Kirk says: “We the 2017/18 financial year as it have determined the best use of “continues to be the market leader strengthening $100m capital is to pay a special in the automotive category”. dividend. We have consistently “Our motors result was our core accumulated cash and reduced underpinned by a 41 per cent propositions debt since we listed, and are now in year-on-year revenue increase from a position to make a distribution.” dealer depth products,” says Jon to dealers” Looking ahead, Macdonald Macdonald, chief executive officer – Jon Macdonald says: “We see a lot of opportunity of Trade Me. and this company will thrive in Across all of platforms, company coming years. revenue hit a record $250.4 million “We expect total revenue – up by 6.6 per cent on $234.9m in growth in 2018/19 of between five 2016/17. In the second half of the weekly finance rates, along with 594 in the 12 months to June 30. and eight per cent. We also expect financial year, revenue grew by 6.4 investment in core functions such Most are based in Wellington, operating profit after tax to grow at per cent year on year. as enhancing search functionality but its operation in Auckland a similar rate in percentage terms. Earnings before interest, tax, by expanding filter options. now has about 150 people. The “These expectations are depreciation and amortisation came On the flipside, the company is Christchurch team has more than contingent on wider economic in at $163.8m for an increase of 6.2 “very disappointed” the Commerce doubled to 28 and will move to conditions, including employer per cent, while net profits after tax Commission declined its bid, which new premises in 2018/19. and consumer sentiment, and real- climbed by 3.9 per cent to $96.6m. was announced in July 2017, to Earnings per share increased to estate volumes.” Macdonald is “delighted” to acquire Christchurch-based dealer see double-digit growth from platform Motorcentral. the classified businesses. “Motors, After 10 months, Trade Me property and jobs are growing received the full decision refusing strongly with combined revenue approval. growth of 12.3 per cent to $141m. “We’ve chosen not to appeal Their success was largely due to and have since signed commercial growth in depth revenue from agreements with Motorcentral. We an independent choice features and premiums.” Jobs saw a will work together to increase value 14.1 per cent increase in revenue and we provide to dealers.” property climbed by 10.2 per cent. Over the past year, the Quest Insurance offers: As for Trade Me Motors, company’s new payment system, Macdonald notes “superb results Ping, was released. This allows all Mechanical Breakdown Insurance – backed by AA Roadside Assist are strengthening our core members to take instant payments propositions to dealers”. and spend with Ping on-site, and Comprehensive Motor Vehicle Insurance While overall motors revenue removes the need to wait for bank – including learner and restricted license cover. growth was 12.7 per cent, revenue payments to clear. Weekly, fortnightly & monthly instalment options now from Motorweb and directs – non- “We’re experimenting with available to match your customers pay cycle dealer listings – rose by 15.7 and artificial intelligence [AI] to 2.1 per cent respectively. speed up the listing process,” Guaranteed Asset Protection Revenue from dealer depth – says Macdonald. “We’ve built an Lifestyle Protection Insurance formerly known as premium – rose Android app called Pinhole, which by 41 per cent and dealer listings allows members to take a photo of went up by 1.9 per cent. what they want to sell, Pinhole’s AI “There was strong revenue then understands what the item is, momentum driven by depth- suggests the best category, a title product uptake and record and recommends a price. inventory numbers for the full year,” “We’ll be experimenting further If you are a forward thinking motor vehicle trader, or financier, looking for a trusted vehicle insurance partner, call Quest. says Macdonald. with AI in 2018/19 to create better He also puts success down to and faster buying and selling Contact: Simon Moore new depth features for car dealers, experiences.” ph. 021 149 2266 including trading branding, was- The number of employees at e: [email protected] now pricing and transparency of Trade Me increased from 546 to
www.autofile.co.nz 11 news
In brief Feebate and fleet Luxury vehicle donated to boost foundation’s work A charity helping young on green agenda sportswomen achieve their goals has received a $100,000-plus he Productivity Commission the fleet with those already on our donation from a premium car has outlined how a “feebate” roads unaffected. brand. scheme for the light-vehicle “A one-off feebate would The Tania Dalton Foundation Tfleet would help New Zealand move be more effective in addressing was launched to honour Silver towards a low-emissions economy. the upfront price barrier and Fern Tania Dalton, who died The think-tank’s final report has affecting purchase decisions given last year, and helps scholarship Steve Fulks, sales supervisor at Archibald & gone to the government for it to consumers’ high discounting of recipients’ development and Shorter, with trustee Duane Dalton consider its recommendations – future vehicle costs,” says the report. connects them with mentors, such as Bernice Mene and Adine Wilson. and the automotive industry comes “A scheme would effectively Now Jaguar NZ and Archibald & Shorter North Shore have donated under the microscope. raise prices for high-emitting an F-PACE SUV worth more than $100,000 and auction items for a gala, At the moment, transport vehicles newly imported and which amassed $200,000, while a portion of Jaguar and Land Rover sales accounts for about 20 per cent of should replace existing road-user made by the dealership to foundation supporters go to the charity. the country’s harmful emissions charge exemptions for light EVs.” “We’re honoured to be involved,” says Steve Kenchington, general with the light-vehicle fleet The commission also suggests manager of Jaguar NZ. “We hope the partnership will inspire other responsible for 59 per cent of introducing vehicle-emissions organisations to support this cause.” those from road transport. standards to reduce the risk of Trustee Duane Dalton says Tania had a long relationship with Commission chairman Murray importing more high-emitters. Archibald & Shorter, and is “thrilled” it’s supporting the foundation. Sherwin believes a price-based It notes New Zealand is one Shawn Rushby, the dealership’s general manager, says: “Tania was feebate scheme will “offer a tool of the few developed countries someone our team knew personally and we feel privileged to help. It’s to encourage households and without vehicle-emissions giving something back to our community.” businesses to purchase less standards, while the average age of emissions-intensive vehicles”. light vehicles jumped from 11.8 to Insurance provider teams up with underwriter Under a feebate scheme, new and 14.2 years from 2000-16. Protecta Insurance NZ Ltd used vehicles would be assessed for “Older vehicles tend to be more has appointed Virginia Surety potential greenhouse gases (GHGs). emissions intensive. A key reason for Company (VSC) as its new Essentially, higher-emitters would the age and economy of the fleet underwriter starting this month. incur a fee, while lower-emission is that most vehicles entering New Stephen Glading, pictured, vehicles would receive a rebate. Zealand are used imports, while managing director of Protecta, The report states: “The feebate most in other OECD countries enter says: “VSC provides a great could be a one-off transaction at the fleet as new. alignment of direction for us. the point of importing a vehicle, a “[However,] the dominance of It will increase our focus on yearly transaction, or a combination used imports, while damaging to the delivering knowledge, experience, innovation and adding value to the of the two. The difference between climate, has been hugely important market, our customers and policy holders.” its emissions and an emissions for reducing the cost of ownership VSC is owned by Assurant, one of the world’s largest underwriters of benchmark would determine the for low-income households. insured service plans and warranties. Its New Zealand head office is in feebate’s size. “New Zealanders tend to Christchurch. Visit www.autofile.co.nz to find out more. “An advantage of a scheme is hold on to vehicles longer than that it wouldn’t only encourage individuals in other developed ‘Buoyant’ industry helps increase lending revenue consumers to switch to electric countries. They are scrapped on UDC Finance has posted half-year net profits after tax of $32.7 million – vehicles [EVs], it would also average after 19 years compared up by eight per cent on the same period in 2016/17. encourage the purchase of more with about 14 years in the UK.” Revenue was $66.3m, an increase of 10 per cent off the back of an fuel-efficient fossil-fuel vehicles, It is recognised autonomous improving economy, buoyant car industry, and people investing in plant including hybrids, until EVs become vehicles (AVs) are expected to be and machinery. The result was achieved against tighter margins. more cost-competitive. commercially available globally by Wayne Percival, chief executive officer, says: “The outlook continues “If early EV uptake is slow, the early 2020s. to be positive in many key industries we focus on, such as forestry, road improving the efficiency of “Digital and AV technology transport, construction and the motor-vehicle sector.” fossil-fuel vehicles would become advances could lead to a shift especially important.” from traditional individual vehicle Franchise kicks off interactive retail concept store The commission says the scheme ownership to an on-demand model of Mercedes-Benz North Shore, which is moving to a larger two-level could be revenue-neutral for the transport provided through driverless showroom in Takapuna, will be the country’s first retailer to operate a government with total revenue from shared fleets. A shift to such a model new retail concept being rolled out globally. fees offsetting rebate costs, but when may mean fewer vehicles are needed The 8,200 square-metre site, with a 3,300sqm showroom, should open the feebate is applied is important. to meet mobility needs.” in 2020. Managing director Craig Innes says: “The opportunity to build a It favours applying a one-off Turn to page 21 for more on the better experience will help us continue to meet customers’ needs.” feebate when the vehicle enters Productivity Commission’s views of EVs 12 www.autofile.co.nz www.autofile.co.nz 13 news Commission to target dealers t
government watchdog is planning to investigate various sectors involved in Athe automotive industry over the next 12 months. The Commerce Commission will be scrutinising the activities of car Sales of motor vehicles are on the Commerce Commission’s radar for 2018/19 dealers, finance companies and electricity suppliers in 2018/19. about vehicle quality and principles, which require lenders to When it comes to registered consumers’ rights, and the failure act reasonably and ethically.” motor-vehicle traders, it will be of dealers to provide redress for “We receive For example, reasonable aiming to ensure they don’t abdicate serious faults,” says Berry. complaints enquiries must be made before from legislative responsibilities laid “We will identify systemic borrowers are signed up to ensure down in the Consumer Guarantees issues consumers are facing, step including the loans meet their needs and they and Fair Trading Acts. up education efforts and take failure of dealers can afford the repayments. This “Priority areas we are targeting appropriate enforcement action often needs to be done at the point affect large numbers of consumers when the law is breached. to provide of sale, for example at car yards. every day,” says Dr Mark Berry, “With more purchases on the redress for Issues such as unreasonable fees chairman of the commission. “We internet, we will also be taking a will also be on the regulator’s radar. will be working with businesses close look at issues associated with serious faults” to tackle particular issues we’re online shopping for consumers and – Mark Berry POWERING THE MARKET concerned about through businesses.” Of interest to those operating in education and enforcement.” finance providers, including some the electric vehicle (EV) market, or He describes motor-vehicle LENDING PRINCIPLES providing loans for cars, failing owning such a car, the commission sales as a big part of New Zealand’s Responsible lending and the credit to comply with the responsible will cast its spotlight on the quality retail economy. They are often sector will remain a priority during lending principles. of service provided by power major purchases and – for 2018/19. Areas targeted by the “These lenders are not only distributors. some buyers – are important in commission last year included breaching the law, they’re It will consult on revenue limits improving their financial situations high-cost and short-term loans, potentially putting people at risk of and quality standards that should by providing work or transport to online lenders, unreasonable credit hardship,” says Berry. apply to electricity networks for the employment. fees and mobile traders. “This year, we will continue to five years from April 2020 with a “We continue to receive a range Its investigations, industry focus on conduct that has the most decision due in November 2019. of complaints about this sector, monitoring and outreach impact on vulnerable consumers “We will consider whether ‘no including misrepresentations activities indicate there are still and enforce the responsible lending material deterioration’ remains the Hot topics being tackled by experts ome major issues affecting executive director, says: NZ, who also sits on research fellowship for his project the automotive industry now “The focus topics will the board of Drive on “realising the potential of and into the future will be be EVs, vehicle-sharing Electric. He will provide driverless vehicles”. tackledS by experts at a conference. models and driverless an update on New The panel will be chaired by Car-sharing services, cars. Between the three Zealand’s EV transition, the Michelle Herlihy, general autonomous technology and fantastic panellists, the and what it means for counsel of Custom Fleet Australia electric vehicles (EVs) are on the level of knowledge and fleet leasing and vehicle and New Zealand, and a Drive agenda as movers and shakers take insight on that stage will finance and insurance. Electric board member. the hot seat as part of a panel on be palpable. Michelle Herlihy Also appearing Among those also presenting October 10 to discuss big topics. “We’re excited to will be Oscar Ellison, at the conference are Kris Faafoi, The panel is part of the Driving be able to hear their honest founder and chief executive officer the Minister for Commerce and Excellence Conference in Auckland and unique perspectives on the of YourDrive, the peer-to-peer Consumer Affairs, a representative hosted by the Financial Services confronting future of the motor- car-sharing service that aims to from the Commerce Commission, Federation (FSF), which represents vehicle industry, how this might shape the future of transport by business and political journalist finance and leasing firms such as affect other sectors, such as financial exploring viable alternative to Bernard Hickey, and Helen Honda Finance NZ, BMW Financial services, and where it will leave vehicle ownership. Gordon, executive director of Services, Orix, Go Car Finance and those who don’t adapt.” The third panellist is lawyer the Australian Finance Industry Fleet Partners. The experts include Dean Michael Cameron. He won the 2016 Association. Visit www.fsf.org.nz Lyn McMorran, the FSF’s Sheed, general manager of Audi Law Foundation’s international for more details.
14 www.autofile.co.nz news
t appropriate basis for minimum potential to revolutionise the way priorities” – areas it considers reliability standards,” explains Berry. New Zealanders live and the types Website revamped essential because of potential “We’ll also consider whether other of energy they consume. significant impact on consumers, The Commerce Commission dimensions of quality should be “We want to better understand businesses or markets, or because launched its new website last monitored, such as communication technologies electricity distributors month with a key difference being they are core to its statutory role. to customers during outages. are deploying, and avoid regulation content tailored by audience. “Credit issues and those “In addition, we will be seeking creating a barrier to uptake so Information for consumers impacting vulnerable consumers to better understand why some consumers can benefit.” and businesses is organised by are priorities because they have a distributors have failed to comply topic or situation rather than disproportionate impact on those with minimum standards for RULES FOR CARTELS legislation, while a case register affected,” says Berry. network reliability. Policy and guidelines to assist holds enforcement outcomes, “We prioritise cartel and anti- “Alongside this work, the parties involved in cartel conduct clearances, authorisations and competitive conduct when it has selected investigations. A section government is reviewing if the to understand what steps they the potential to have a significant on regulatory projects has electricity market is delivering a fair must take when applying for impact on consumers and markets. timelines and related documents. and equitable price to consumers.” leniency have been updated. “Merger clearance and Such business dealings are authorisation applications are NEW TECHNOLOGIES hard to detect because they are an individual can be fined up a large part of our competition For the commission to be often carried out in secret, so the to $500,000 for cartel conduct, work. We prioritise these when effective, it needs to understand commission wants to incentivise and or be banned from being a we receive them, along with the operating environment those involved to report behaviour company director or managing a investigations into mergers for industries and consumers such as bid rigging, price fixing company. A body corporate can that could substantially lessen especially when it comes to and allocating markets. be fined the greater of $10 million, competition when an application developing markets, changes in Its leniency programme or three times the commercial hasn’t been made. consumer and business behaviour, encourages reporting of cartel gain from the breach or 10 per “We use a number of tools to and overseas trends. conduct by offering the first party cent of turnover. detect non-compliance and harmful “For example, we recognise that applies the chance to obtain behaviour, and use advocacy and emerging technologies – such as immunity from enforcement in THE BIGGER PICTURE education to make businesses battery storage, EVs and home exchange for co-operation. While identifying specific targets, and consumers aware of their automation systems – have the Under the Commerce Act, the commission has “enduring obligations and rights.”
Help drive our fast-growing brand!
Mitsubishi Motors NZ continues to drive success on all fronts. Tracking strongly towards a ninth consecutive year of growth, we are NEW looking to add more forward-thinking dealers franchise to our award-winning network. With a dynamic, ever-evolving range and increasing brand recognition, we are in a opportunities! strong position to achieve our next goal of 10% market share. Our position is strengthened as part of the Renault-Nissan-Mitsubishi Alliance – the largest car maker in the world and an EV pioneer.
It is an exciting time to come on board. We have ambitious goals and a strong focus on dealer profitability. Share in our ambition and enjoy the support of industry-leading resources and a dealer programme that rewards excellence.
You must have: • A proven record of success. • Vision for the future. • The investment required to deliver the best brand experience to our customers.
Expressions of interest should be made to: Daniel Cook - Chief Operating Officer [email protected]
www.autofile.co.nz 15 news
In brief Companies strike deal for venture on electric cars BMW and Great Wall have signed an agreement to develop and make electric Minis through Spotlight Automotive Ltd, a 50-50 joint venture based in China. The agreement will Remarkable views also see electric vehicles (EVs) made for the Chinese marque after both partners have built a production facility in Jiangsu province. The production of battery-electric Minis in China, the world’s largest from showroom market for electro-mobility, is key to the marque’s strategic development. bold and stylish respond to its surroundings.” This step towards electrifying Mini comes in addition to its first EV showroom concept As part of the design, the to come off its plant in Oxford, England, next year. Its concept design is housed in an angular Lexus signage and logo were shown above. buildingA is home to the country’s split. “The building is the sign,” newest Lexus store. says Chin. “Lexus was supportive Manufacturers in spotlight over test procedures The facility in Queenstown of our proposal. It’s a ‘less is more’ Mazda, Suzuki and Yamaha are the latest marques to have improperly has been designed by Arrowtown philosophy and curiosity in the tested vehicles for fuel economy and emissions with the Japanese architect Anna Marie Chin to building will attract people.” government ordering them to check their operations. “reflect” the marque’s ethos. The inside differs from a It follows revelations of incorrect testing at Subaru and Nissan last “The vision to have Lexus here conventional car showroom. year, with wrong data for the latter found as part of a probe into why 1.2 started about three years ago The roof opens up, so it’s not a million units were recalled in 2017. after seeing accelerating growth static space, and the platform for The latest errors relate to deviations in vehicle speed that should in the area,” says Glen Rutherford, vehicles sits in a gallery-like space. have invalidated results. None of the marques found significant issues chief executive officer of Lexus of The main structure was built with actual emissions and fuel-economy performance of vehicles Queenstown. off-site in Invercargill to minimise destined for sale in Japan. “We were a service centre and disruption and trucked to Suzuki says about 50 per cent of 12,819 sample vehicles tested since approached Lexus NZ about the Queenstown for installation where June 2012 were checked improperly. Mazda reports irregularities in four opportunity. Our design of the ‘Lexus finishing was completed. It can also per cent of inspections, or about 70 units. In Yamaha’s case, it was two lounge’ had to fit with the dramatic be moved in the future if necessary. per cent of tests – a handful of vehicles. landscape and luxury product.” Paul Carroll, senior general GWD Motor Group wanted manager for Lexus NZ, says: Luxury British marque to take off with air travel to provide clients with a visually “With the rapidly expanding Aston Martin has unveiled pleasing experience, and the Queenstown and Wanaka region, its Volante Vision Concept – design brief was to make the and our own expanding sales – an aircraft with vertical take- facility, which is near Queenstown up 16 per cent this year – we felt off and landing capabilities. Airport and has the Remarkables it was time to provide a better Being made with as its backdrop, unique and fit in level of support to the region.” Cranfield University, with the environment. Lexus of Queenstown is the Cranfield Aerospace “They’re quite progressive,” says seventh dealership in the marque’s Solutions and Rolls-Royce, Chin. “It had to highlight Lexus as nationwide network, while the it aims to bring luxury forward thinking and be compact GWD Motor Group already has personal transport to the skies. because there wasn’t a lot of outlets in the town, Invercargill, With room for three adults, it’s a “near-future study”, which previews a space. The building is designed to Alexandra and Gore. flying autonomous hybrid-electric vehicle for urban and inter-city travel. Lexus of Queenstown’s facility blends in with the mountains Recession avoided as Japan’s economy grows The economy in Japan has bounced back from a poor start to 2018 by growing at 1.9 per cent in the second quarter. The result marks a recovery from first-quarter contraction to avoid a recession. Japanese companies selling goods overseas face uncertainty from escalating global trade tensions with car makers – including Toyota, Nissan and Honda – worried about Donald Trump’s threats to impose tariffs on vehicle imports into the US. Japan’s economy has another danger on the horizon with a scheduled hike in sales tax next year. The last time this happened, the country went into recession.
16 www.autofile.co.nz news Old tyres on political agenda ndustry experts are hoping replace tyres they pay a $5 fee to priority product status for the retailer. A tyre recycler takes end-of-life tyres (ELTs) is one the levies to dispose of them in an Istep closer with the government environmentally friendly way, but announcing a programme to tackle they often get dumped in landfills. major waste problems. “There are all sorts of worse rorts, The expansion of product such as renting a warehouse, filling stewardship schemes is part of the it with empty tyres before walking review with ELTs being one of the away and leaving the owner to issues focused on. dispose of them,” says Vinsen. Industry-led working group “Then there’s dumping them on Tyrewise is ready to move forward land a farmer is unaware of. In one End-of-life tyres have been put back on the agenda with a mandatory stewardship by Eugenie Sage, Associate Environment Minister case, more than one million tyres scheme, and will work with the were stored on a farmer’s property government and industry so approach to a mandatory product place for the use of them.” without his knowledge.” priority status can be declared as stewardship for ELTs”. Vinsen says a variety of businesses Sage is adamant her efficiently as possible. Frustration remains, however, are prepared to invest significant programme of work will better “While an ELT announcement about what happens with old amounts of money to develop manage waste going to landfills has been long-awaited, the tyres at the moment and that systems and processes to use ELTs. and improve the collection of working group recognises there is a the working scheme developed For example, they can be data on waste. The review will also regulatory process to go through,” under the previous government grinded into the mixture to make consider a mix of voluntary and a group update states. remains sidelined. roads and used as fuel, but all mandatory stewardship schemes Because five years have David Vinsen, chief executive of ventures need a continuous stream for products such as e-waste, passed since Tyrewise presented VIA (the Imported Motor Vehicle of high-volume old tyres. starting with lithium batteries, and an industry-led framework Industry Association), believes the At the moment, when people synthetic greenhouse gases. for ELT stewardship to the current situation can be solved in National government, the group two ways – with political will and understands fresh consultation the government declaring ELTs a going forward is likely to be needed. priority product. NEED YOUR CAR OR TRUCK MOVED? It adds market developments He says a lot of time and money Transport Logistics – Specialists in Inter-Island Transportation also need to be taken into was spent by various associations, account, such as Waste such as VIA, and businesses on Management opening a tyre- the previous – and still unused – recycling facility in Auckland in stewardship scheme. May and building capacity for “I cannot understand the need Golden Bay Cement to use ELTs. to go back and reinvent the wheel,” “These facilities compliment says Vinsen. “It’s ready to go. All the proposed model for product they have to do is say ‘yes, used stewardship as they provide tyres are a priority product’, which on-shore processing capabilities. means a lot of legislative support While Tyrewise’s first priority is comes around that. to create transparency through “They can review the work auditability and traceability, the already done, but it has been peer- second is to support development reviewed under the direction of the for new uses for ELTs.” previous government. Part of the programme “We don’t need another SHIP. RAIL. ROAD. announced by Eugenie Sage, working group. At the very most, TAILORED SOLUTIONS TO BRING YOU THE BEST PRICE Associate Environment Minister, is we need someone to review the to look at expanding the waste- work that has been done. Then PORT-TO-PORT – DOOR-TO-DOOR disposal levy to apply to more someone to champion the cause, Please contact us: than 400 landfills not currently take the decision to declare used Auckland office subject to it. tyres a priority product and press Tina Boatwright 029 525 8950 Tyrewise says increased levies will the switch to go. email: [email protected] result in more funding for the Waste “The initiative put together Christchurch office Louise O’connell 03 374 5716 Minimisation Fund. This, in turn, will before was to ensure that all used email: [email protected] mean greater capacity to incentivise tyres could be properly collected onshore processing, which will be and delivered to people who key to promoting a “circular economy had already approved schemes in
www.autofile.co.nz 17 new cars Plug-in hybrid’s price-tag slashed itsubishi Motors NZ has converter and muffler, as well as a chopped thousands mass plate on the main muffler. of dollars off its 2019 On the VRX, hill-climbing Mtop-of-the-range plug-in hybrid performance has been boosted electric vehicle (PHEV) to bring it by improving traction control. in line with many of its petrol and LED high beams and fog-lamp diesel SUV competitors. bezels have also been added. At $55,990, plus on-road costs, The new PHEV has an electric the new Outlander PHEV VRX range of 54km and a combined is available for $8,000 less than range of more than 600km its predecessor with stock now thanks to two electric motors arriving in the country. and one two-litre petrol engine. “We don’t want price to be a Regenerative braking helps boost barrier to people deciding to join combined fuel consumption to the move towards EV motoring,” 1.7l/100km. says Reece Congdon, head of The 2019 Outlander PHEV VRX Having fast charge and AC marketing and corporate affairs. sockets means drivers can fill up “By bringing the cost of the Both model year 2019 variants improved comfort and stability, overnight – six-and-a-half hours PHEV VRX in line with a number – the XLS and VRX – have been while steering responsiveness from empty – from a standard of petrol and diesel equivalents, upgraded for a smoother, quieter has been enhanced through an power outlet, or refuel the we’re offering real choice. Our ride and boast one-tonne towing increased stroke ratio and revised battery to 80 per cent in about 20 PHEV was the first hybrid SUV in capacity. control programme. minutes using a fast charger. New Zealand and it has remained The revised front and rear To reduce engine noise, a And Mitsubishi’s EV control the most popular vehicle in its suspension, and increased use double layer cover has been added app allows owners to remotely set class since its launch in 2014.” of structural adhesives, provide to the exhaust manifold, catalytic charging times and climate mode. Concept to reality Vehicles wanted esigns for Aston Martin’s Simon Sproule, vice-president, first SUV have been says: “We’ve shown it to dealers Buying now signed off with the car set prospective customers and the Dto come to market in 2019. design freeze has happened. The hand-built model will “We know what it looks like launch as a petrol model and is set and we’re working on the first VEHICLES WANTED to be called the Varekai. prototypes. It’s a proper car All Audi, Porsche, Jaguar, Land Rover and Volvo Models It’s expected the DBX concept, programme and it’s going through which was previewed in three- its first milestones.” He confirmed its door form at the Geneva Motor launch next year. Show three years ago, will heavily The DBX concept used a
Jeff Dacombe . 021 532 355 . jeff[email protected] influence the design of the futuristic, all-electric and all-wheel- production-ready Varekai, which is drive powertrain, but the Varekai will likely to adopt the marque’s wider launch with petrol power the sole grille and elegant front profile. option and diesel firmly ruled out. LATE MODEL FORDS & MAZDAS WANTED A select number of buyers have “If you look at our electric-vehicle been invited to see the finished strategy, by mid next decade item, which has been transformed every car we make will be hybrid into a more conventional five-door or electric,” says Sproule. “Our and will be built at Aston Martin’s electrification plan is the Rapide next new facility in St Athan, Wales. year and the Lagonda from 2021.” Call Jason Robb Ph 0274 133 222 The Varekai could be based on the DBX concept which was revealed in 2015 To advertise here, contact: [email protected] or ph 021 455 775
18 www.autofile.co.nz new cars Extending range of batteries he all-electric version of the Buyers can specify an optional Niro has gone on sale in smaller 39.2kWh battery pack with South Korea with a driving a range of up to 246km from a rangeT of 380km on a single charge. single charge. Kia New Zealand has confirmed The SUV offers drivers a it wants to bring the electric range of Kia’s advanced driver- vehicle (EV) to this country to join assistance systems, such as its two Niro models already on sale. forward collision warning with General manager Todd collision-avoidance assist, McDonald describes the and smart cruise control with acceptance of the hybrid and plug- intelligent stop and go. in hybrid variants, which went on It also boasts lane-following sale here in March, as “exceptional”. assist, which is a level-two He says: “It has proved to us autonomous driving technology there’s a place in the regular that tracks vehicles in front and market for a well-designed SUV detects road markings to keep the that delivers astonishingly low fuel Niro in its lane. consumption.” range of more than 380km on standstill to 100kph in 7.8 seconds. The system, which operates up The Niro EV is powered by the a single charge. Plugged into a The battery pack is located low to 130kph, controls acceleration, marque’s next-generation electric 100kW fast charger, it takes 54 down in the body beneath the braking and steering according powertrain using new production minutes to top up to 80 per cent. boot floor. This creates a centre to the behaviour of motorists technologies. Power is provided to the front of gravity more akin to that of a ahead by using external sensors to Equipped with a high-capacity wheels through a 150kW motor sedan or a hatchback, and ensures maintain a safe distance. 64kWh lithium-polymer battery producing 395Nm of torque maximum stability and driving Kia hopes to introduce the Niro pack, it targets a zero-emissions delivering acceleration from enjoyment on winding roads. EV to this country in 2019. Small outside, big inside Vehicles wanted olkswagen is set to launch practicality features of a crossover. a new small crossover “I am more” is the slogan for later this year based on its the T-Cross’ introduction, which Toyota SUVs & Utes Vpopular hatchback, the Polo. the marque says reflects the The T-Cross will borrow design philosophy behind it – “to offer cues from the larger T-Roc SUV and more than others, but without Polo, including a full-width grille costing more”. with a flatter front profile. The front axle moves forward The marque revealed the to lengthen the wheelbase, create T-Cross Breeze convertible concept more inside space and increase at 2016’s Geneva Motor Show and available stowage. Depending on it’s likely to be similar in looks. the situation, the rear-seat bench can It will be built on the modular be adjusted lengthwise as standard. Hilux • Land Cruiser • Prado transverse matrix platform, which The maximum cargo volume is used on the Polo and Seat Arona represents leading value in the among others. segment. The back of the rear seat The T-Cross will have four engine can be divided 60-40 or completely options, three petrol and a diesel, and folded down. This creates a flat all models will be front-wheel drive. loading area for 1,281 litres of space. In terms of size, the T-Cross The T-Cross is one of the 19 SUVs will be similar to the Golf, Volkswagen is planning to launch We are always looking to purchase late model but boast some of the by 2020. NZ New cars aNd commercials Only images of a disguised version of VW’s T-Cross have been released so far. The production version miles motor group is likely to be unveiled at next month’s Paris Paul Curin 0274 333 303 [email protected] Motor Show
www.autofile.co.nz 19 EV focus Range anxiety – is it a reality?
lectric vehicles (EVs) aren’t the most degraded new places, multi-task if no car and 38 per cent have one, idiot-proof, but they aren’t far battery of the oldest the laptop or cellphone leaving 54 per cent with at least two. off. Anyone with a spoonful EVs in New Zealand. allows, or take a nano- There is a huge opportunity Eof common sense is unlikely to run Obviously, in terms of nap. Each charge takes here for dealers who want to start the main traction-battery flat. day-to-day running, about 20-30 minutes. clients on EV journeys. Eighty-two Yet one of the main things range anxiety is a non- Some EV owners rent per cent of EV families contributing that puts people off buying EVs is issue for most. a combustion vehicle to Flip The Fleet retain an old “range anxiety”, the fear of getting But it’s important to for longer trips. I look combustion vehicle or plug-in stranded out in the whops or, not dismiss the range Henrik Moller, co-founder, forward to a time when hybrid for long trips or to tow the Flip The Fleet more embarrassingly, 100 metres issues altogether – EVs there are communal car- trailer, but then transfer most short short of home. The thing is, it don’t meet special transport sharing schemes, not just EVs but range and daily travel to their EV. hardly ever happens. needs of some people. The key shared combustion vehicles to This saves running costs, reduces Seventy-two per cent of EV challenge for car dealers is to support businesses and families emissions or gives better rides. owners feel little or no range match capacity with what buyer needing the petrol or a heavy- Dealers can urge most families anxiety, according to one of Flip needs it to do. Convincing them duty vehicle for special trips or keep one combustion vehicle as The Fleet’s monthly surveys of more may take some time. tasks. back-up. This totally removes range than 1,000 owners in New Zealand. It is occasional long trips away New Zealanders sure love their anxiety – the old car has a few days Owners quickly gain confidence that seem to spook a lot of non-EV cars. Our 2013 census showed only of renewed glory on occasional with experience as they learn the owners. More concentration is eight per cent of households have long trips. The work horse will also vehicle’s limits. It just needs simple needed to not run your battery flat last longer because the bulk of the forward planning, attention to the on such journeys into unfamiliar Vehicle ownership travel is now carried out by the EV. EV’s excellent instrumentation and terrain. It’s a natural concern if Owning an EV need not be an all driving to the car’s capacity. An you just have the one car in your or nothing choice for families or initial fright or two is sometimes family or business, especially 3% business fleets. needed to concentrateTable the driver’s 1 in more remote parts of EV batteries are rapidly mind onVehicle ensuring ownership enough energy New Zealand – the improving in terms of remains to get to the next plug, national roll-out of 18% energy density and cost, but EVafter + thatICV forward planning rapid65% chargers every so range is rapidly becomesEV + ICVautomatic, + MB even 75km5% down main 1% EV + ICV expanding. As charging subliminal. highways is only EV + ICV + MB infrastructure and EV + MB People enjoy the benefits of about5% 80 per cent 3% EV + MB battery technology EV + PHEV havingEV +a privatePHEV “energy station” complete.3% improve further, range 5% PHEV + ICV at home and mostly plug in Navigating long EV alone anxiety will fade. PHEV + ICV 1% PHEV alone every couple of days as needed trips in a small EV Most Flip The Fleet 65% at base.EV alone Nearly everyone can is not18% just about not 5% contributors already keepPHEV their alonecellphones charged running3% out of battery. reckon it’s no big deal. The by morning, so what’s the big The added time needed challenge for most EV dealers deal about making sure your car to charge along the way is convincing buyers that range is fully charged by the next time may be a hassle if you have a anxiety is more a perception of you need it? It’s just a matter of back seat full of restless children, onlookers than a real practical hassle plugging in and walking away. or for a small business that needs for those who own one. Most EV owners retain a combustion vehicle The median – 50 percentile – to pay the driver’s wages while for back-up, partly to avoid range anxiety on trip distance away and back to topping up the battery. longer trips, according to Flip The Fleet Henrik Moller is a retired sustainability base in Flip The Fleet’s communal Actually, many owners enjoy scientist from Dunedin. You can get more Key: EV = electric vehicle, PHEV = plug-in database is just 27km. This is these charging stops – it’s a details on EVs from the discussion and hybrid, ICV = internal combustion vehicle, resources pages of www.flipthefleet.org, way less thanautofile-banner-ev2.pdf the range of even 2 chance 9/4/18 to walk, 4:21 explorePM some MB = motorbike or email [email protected].
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M Live EV listings on Trade Me: New EV listings on Trade Me: EV watchlists on Trade Me: Top 5 EV models Average listing price EV + ICV Eyes on EVs Y EV + ICV + MB listed on Trade Me this month: for the month: EV + MB CM EV + PHEV +6% -33.8%PHEV + ICV -3.7% +60.9% • Nissan Leaf • Nissan e-NV200 $25,750 MY +56% +13.9% EV alone • BMW i3 • Hyundai IONIQ Compared to Compared to ComparedPHEV aloneto Compared to Compared to Compared to CY • Toyota Prius last month prior year last month prior year last month prior year CMY * Figures as at 30 August 2018 K
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