7 October 2010 The voice of the auto industry Associations to discuss age ban An eight-year rolling age right to have this discussion. age ban, Kerr says they’re willing of IMVIA members taken ten ban for used imports could be “The exact age would be up to go with an eight-year ban, years ago showed that around on the table, with the IMVIA for debate, but we would like from the date of first registration, 55 percent were opposed to a saying they’re prepared to to see eight or nine years. The which would tick over each year. rolling ban, while a second poll, discuss the matter. average age of vehicles coming Ministry of Transport figures taken three years later, showed Prompted by MIA chief in is eight years, so this would on the age of used import that opposition had softened to executive officer Perry Kerr’s certainly cut off a fair proportion passenger vehicles entering the about 50 percent. letter on rolling age bans in of vehicles.” fleet, show in 2009 that 67.4 “In favour of such a proposal the last issue of Autofile, chief Meanwhile the MTA’s Ian percent of vehicles entering the is that it would give the trade executive David Vinsen says now Stronach says that despite Kerr’s light fleet (excluding diesel) fell certainty, and it would reduce may be an opportune time to claim otherwise, the MTA has into the 2001-2008 age bracket, the need for rules and legislation discuss the concept. “We’d be always supported the concept of while the remaining 32.6 percent and the introduction of standards open to a healthy discussion on an eight-year rolling age (see this would not have complied with an on a progressive basis. Against that possibility. It’s a barrow that week’s Letter to the Editor). eight-year ban. it would be a loss of choice for Perry [Kerr] has been pushing for Kerr says he’s happy to discuss Vinsen says that while not all consumers and the trade, and a long time, and we’ve had mixed a rolling age ban with the IMVIA. of his members would support a loss of volume, and the fact views on it. He’s raised it again While previously the MIA has such a move, he believes that that the fleet will continue to now, and probably the time is been a proponent of a seven-year the majority now would. A poll get older before it got newer. continued on page 8 New market shows lift on pre-GST and rentals 40 years New vehicle sales in September buyers and for fleet sales. Fleet see a lift, selling slightly fewer were up almost a quarter on the vehicles purchased before the cars than in August. Bad weather previous month, as a combination rise would result in ongoing in many parts of the country of factors drove sales. savings from Fringe Benefit Tax may have contributed to slightly September is traditionally a for companies. It remains to be lower sales. Nevertheless the strong month for the new vehicle seen on October’s figures how market has been steady, and market, with fleet purchasing, much of the rise in September the 7,430 sales were 1,511 units and with rental companies was notional. (25 percent) ahead of the same beginning their buying for the To date, the new vehicle market month last year. For year to date, of industry summer tourist season. is up 14 percent compared to the used import car registrations are GST is likely to have been an same period in 2009. up 36 percent compared to the progress added incentive, both for private The used import market didn’t same time in 2009. p20 For full coverage see pages 14-19

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ASIAN VENTURE V11 Nagoya 29 Mar Yokohama 31 Mar Auckland 19 Apr Tauranga 22 Apr Napier 22 Apr Wellington 21 Apr Lyttelton 22 Apr MADAME BUTTERFLY V3 Sakaisenboku 26 SeptORCHID - Nagoya ACE 29 Sept V1 - Yokohama 30 Sept - Auckland 24 Oct - TaurangaSakaisenboku 28 Oct - Napier 26 Mar 28 YokohamaOct - Wellington 30 Mar 26 Oct - Lyttelton 27 Oct Auckland 18 Apr Tauranga 22 Apr Napier 22 Apr Wellington 21 Apr Lyttelton 22 Apr

MADAME BUTTERFLY V1 Sakaisenboku 29SARACEN Mar Nagoya STAR 30 Mar V6 Yokohama 31 Mar Sakaisenboku 14 Oct - KobeAuckland 15 Oct - Nagoya21 Apr 16 Oct - Kawasaki 17 Oct - Auckland 4 Nov - Tauranga 8 Nov - Napier 8 Nov - Wellington 6 Nov - Lyttelton 7 Nov EUROPEAN EMERALD V40 Sakaisenboku 14 Apr Nagoya 15 Apr Kawasaki 16 Apr Auckland 1 May Tauranga 4 May Napier 4 May Wellington 3 May Lyttelton 4 May ISTRA ACE V1 Sakaisenboku 26 OctTOKYO - Nagoya CAR 28 Oct V1 - Yokohama 30 Oct - Auckland 12 NovSakaisenboku - Tauranga 16 26Nov Apr - Napier Nagoya 16 27Nov Apr - Wellington Yokohama 14 30 Nov Apr - Lyttelton 15 Nov Auckland 13 May Tauranga 4 May Napier 16 May Wellington 16 May Lyttelton 16 May

ISOLDE V3 Sakaisenboku 28HOEGH Apr Nagoya XIAMEN 29 Apr V1 Kawasaki 30 Apr Sakaisenboku 28 OctAuckland - Nagoya 21 29 May Oct - Yokohama 30 Oct - Auckland 24 Nov - Tauranga 28 Nov - Napier 28 Nov - Wellington 26 Nov - Lyttelton 27 Nov www.hoegh.com Tokyo Osaka Nagoya P + 81Tokyo 3 6436 3320 P + 81Auckland 6 6265 8580 P +Christchurch 81 5 2968 1731 PF ++ 8181 3 6436 33283320 FP + + 81 64 6 9 6265 373 85813375 FP + + 81 64 5 32968 379 17307682 F + 81 3 6436 3328 www.kiwicar.comF + 64 9 379 9477 F + 64 3 379 3480 Auckland Christchurch www.hoegh.comP + 64 9 373 3375 P + 64 3www.kiwicar.com 379 7682 F + 64 9 379 9477 F + 64 3 379 3480 editor’s note Innovation needed Editor Stian Overdahl [email protected] for progress 021 247 7782

Advertising Brian McCutcheon [email protected] General Enquires Free phone 0508 288 863 [email protected] 021 455 775 Free phone 0508 288 863 Fax 03 4772758 Staff Writer & Motorsport PO Box 6222, Mike Stock Dunedin 9059 [email protected] Publishing Company Designer 4 Media Limited Adrian Payne PO Box 6222, [email protected] Dunedin 9059

Copyright: Published twice monthly by: 4Media, PO Box 6222, Dunedin 9059 A particular bugbear of mine The current model of traffic All statements made, although based on information believed to be accurate is poor phasing of traffic lights. It’s light phasing is top-down – and reliable, cannot be guaranteed, and no liability can be accepted for any not the waiting that I mind, what average traffic flow is measured, errors or omissions. Reproduction of autofile in whole or part, without written I object to is a constant series of and then phasings are designed to permission, whether by xerography or any other means, is strictly forbidden. red lights along a main road, that run on a regular cycle. Variations All rights reserved. force you to stop almost as soon as in traffic flow or an unexpected you’ve got up to speed. event can throw the system out. On one road I frequently travel The alternate proposed is for I’ve worked out (theoretically) that traffic lights to act locally, with the only way to keep in period each set of lights communicating with the greens is to crawl at to those adjacent to it. While about 20km/h between lights, there is no overall control of the unlikely to make you popular with system, with the traffic lights General SaleS ManaGer fellow drivers. ‘free’ to act according to traffic leadinG ToyoTa dealerShip Now I understand that those volume, simulations have shown who programme phasings do the significant improvements in best job they can, but I can’t help congestion and total journey time. North Western Toyota, the leading motor vehicle dealership in West but think that with all the effort Delay processes, whereby cars Auckland, requires the services of a top-flight General Sales Manager. After a recent change of ownership the dealership has become part of a the Government puts into various are initially slowed down, are very successful Auckland-based motoring group and is well set for healthy schemes, they might want to chuck used to improve flow. Vehicles growth. The new General Sales Manager will play a big part in this growth. a bit of money towards a simple, are corralled into ‘platoons’, which There are many positives that come with this role:- practical idea that could save the are then given priority, and the • Will be selling NZ’s number one brand. country billions. system is designed so as not to • Situated in NZ’s fastest growing demographic / area. What I mean is utilising new bring these platoons to a halt. • Will be an integral part of NZ’s biggest growing motoring group. • The ability to have uncapped earning potential. technology in order to manage And since vehicles are travelling in • Responsible for both new and used vehicle procurement and sales. traffic flow more efficiently, cutting one direction as a compact mass, down on driving time as well as intersecting traffic flow can also The successful applicant will have the following attributes:- • A proven history in motor vehicle sales. loss of energy through breaking. be timed to cross between gaps • The ability to manage and motivate an existing team of experienced Luckily two professors working without coming to a stop. sales persons. at Dresden University in Germany Rather than introducing • Able to draw from untapped potential to generate superb results. are working on ‘smart lights’, which constant regulations, the • Will be gross profit and goal orientated. adapt according to traffic flows. It’s Government should have some This is a career position. We are looking for a top-flight professional who can not so simple as letting more cars practical and common sense join our management team with the desire to work hard to help us grow this through, or sensing when a lone focus, and invest in research and part of our business and be rewarded accordingly. Future opportunities will come with being part of a growing and ambitious motor vehicle business. vehicle arrives, instead the lights technology. communicate with one another Contact Dealer Principal Mark Jago today. in order to regulate and control Stian Overdahl You enquiry will be treated in total confidence. traffic flow. Editor Email: [email protected] or Phone 021-837-274.

www.autofile.co.nz | 3 news

ETS detailed but could be on hold as Australia dithers The policy has been finalised inclusion of synthetic gases in the progress made by our major trading emissions, and real-life experience and the regulations for the ETS is delayed, says Ministry for partners, particularly Australia, says of how it’s working. inclusion of synthetic gases in the the Environment Manager ETS a spokesperson for the Minister of “The Government has made it Emission Trading Scheme released. Operational Policy Ket Bradshaw. Environment Nick Smith. plain that the stepping up of the At issue for motor vehicles “The Government has said “The legislation that the scheme in 2013, and the addition important is the coolant gas that no further sectors (including Government passed at the end of of further sectors, is conditional present in the air-conditioning synthetic gases) will enter the NZ last year requires that a review of on substantive progress being systems of motor vehicles. ETS until the Government sees the ETS be undertaken every five made internationally, particularly As expected, motor vehicles comparable action from New years, and the first review is next in our major trading parties such didn’t receive an overall Zealand’s trading partners. The year in 2011. The scheme is going as Australia.” exemption, although smaller actions other countries are taking to require regular refinement With Australia yet to adopt importers will not have to report, will be assessed as part of the in response to progress an emissions trading scheme, with an exemption for the first 100 2011 review of the NZ ETS.” internationally, the development mandatory reporting could still be tonnes of carbon, equivalent to Key to this review will be of technologies to mitigate some time away. 110 cars. Importers will have the option of calculating the carbon charge HFC-134a is banned on new brought 1.3 into New Zealand, either by the default charge of 700 HFC-134a models in Europe from 2011, but with overseas markets grams of synthetic gas per car, van and must be completely phased regulating it’s likely only to be or ute, or by calculating the actual Motor vehicle air-conditioning out of new vehicles by 2017. All only a matter of time. amount of gas present, or by using systems use a synthetic refrigerants are required to have a Under the new regulations, both methods. The default charge hydrofluorocarbon called R-134a. GWP of less than 150. cars, vans, and utes have a default is equivalent to 0.91 tonnes of If released, the gas will stay in the GM announced earlier this charge of 700g HFC-134a. Trucks carbon dioxide, and would incur a atmosphere for more than 13 year that its American models have a default of 1,200g, and charge of around $18 per vehicle years. The effects of synthetic gases from 2013 onwards will use busses and off-engine refrigerated at the current market rate for New are measured in terms of their HFO-1234yf as a refrigerant. The trucks and trailers have a default Zealand carbon credits. Global Warming Potential (GWP), newly developed gas stays in the of 2,500g. The default charge for Voluntary reporting is in which is a calculation based on atmosphere for just 11 days, and cars of 700g equates to a value of place from 2011, with mandatory the amount of heat they will trap has a GWP of just 4, which is 99.7 0.91 tonnes of carbon dioxide. reporting timetabled for 2012, in the atmosphere over 100 years. percent lower than HFC-134a. With up to the first 100 and with actual surrendering The New Zealand ETS ascribes to There’s no word yet from tonnes exempt for importers of of carbon credits for vehicles HFC-134a a GWP of 1300, meaning local distributors on any specific vehicles, that means that the imported in 2013. that it will trap 1300 times as much plans for HFO-1234yf or similar first 110 cars will be exempt, or However a review taking place heat as carbon-dioxide. low-GWP gasses in vehicles 64 trucks, or 30 buses. next year could mean that the

Letter to the Editor

Dear Sir, correspondent, Mike Mapperson those of a technical nature. lows that result from the In your 23 September 2010 to “go and talk some sense” to This warning current regime. issue, Autofile contained a MTA (and IMVIA) about our notwithstanding, MTA has Letter to the Editor from Perry support for a rolling seven year continued to suggest the MTA’s submission on Safer Kerr which covered amongst age limit. introduction of a rolling age ban, Journey’s last year made our other things rolling age bans MTA first began to look at a on the basis of the advantages it position on this matter quite for used imported vehicles. rolling ban as an option around offers, in that it ; clear, “MTA fully supports the This letter misrepresents MTA’s the time of submissions to the introduction of an eight year rolling position in regard to rolling age Vehicle Exhaust Emissions Rule · is a relatively simple ban on used import vehicles.” We bands, and we wish to have our in July 2007. At that stage we means of updating the New have since repeated this in several position accurately represented. were advised that there was, Zealand fleet other submissions, and have made In his letter, Perry states and probably still is, some · can allow for this updating no secret of our position. that MTA has not seen the resistance from MFAT who in a way that is fair and MTA is unsure why Perry introduction of a rolling indicated, through the then equitable for all parties thinks we do not support moves age limit for used imported LTNZ, that New Zealand risked · brings a degree of to introduce such a ban; we do. vehicles as being “in their breaching WTO agreements by certainty to the market that members’ interests”. He goes on introducing any restrictions to all parties can plan around Yours sincerely further to implore the original trade based on issues other than · eliminates the highs and Ian Stronach

4 | www.autofile.co.nz news Höegh/ KIWI opens No evidence says Toyota Toyota Motor Corp has problems such as announced that it hasn’t found up southern Japan any evidence its electronic throttle control caused unintended Höegh/ KIWI have announced a direct call, it will aid buyers, acceleration after engineers and that they will be running a and, it opens up the whole technicians investigated more than monthly service to New Zealand south region. This means more 4,000 U.S. vehicles whose drivers out of the southern port of Kobe. product and choice for buyers, as made such complaints. faulty This will open up the south of there are a number of different “Toyota has not found a single gas pedals, floor mats that can Japan to buying, says customer auctions in Kobe which buyers case in which electronics would trap accelerators, and problems services manager Neil Lay Yee. will be able to access.” lead to sudden unintended with its Prius hybrid. The problems “Historically not many ships The service began on acceleration,” Steve St. Angelo, are still under review by the U.S. have called into the Kobe area, October 1, and ships depart once Toyota’s North American chief government. and cars have been transported a month. Bookings and MAF at quality officer, said in a conference The company said about 80 up to Osaka, which has added the Kobe TRS will be provided by call. Toyota has reviewed 4,200 percent of the 2.3 million vehicles an extra cost. Now that there is Autoterminal Japan. individual acceleration-related recalled for sticking pedals have complaints so far, he said. been fixed and nearly 58 percent Some media reports asserted of the 5.4 million vehicles with gas that Toyota’s electronic throttle- pedals that could become trapped control system plays a role in in floor mats have been repaired. sudden acceleration -- an assertion Customer complaints of Toyota has denied from the sudden-acceleration incidents in beginning of the crisis. the US have dropped 80 percent Toyota has recalled more than since April, Toyota said in a 10 million vehicles worldwide for statement. Computers who needs them?

As much as computers play an people- not a single company important part in our every day stood up and thanked their Take us for lives and businesses, and we are computer system, and rightly so. far more reliant on them than As a business that exists we’d like to admit, it’s important entirely in the realm of a test drive... to remember their place in computers, we see the extent business, they are just a tool like people come to reply on them, We realise not every person fits standard vehicle a good spanner. and the tremendous benefits, finance criteria. That’s why at Avanti Finance we base We sponsored the recent as well as the huge frustrations each application on the client’s individual profile. MTA Auckland Branch awards that computers can bring to a Now there’s an alternative to get more customers recently, it was great to see so business, but at the end of it all, on the road with approved finance deals. many businesses striving to be it’s the people in your business better, to be more efficient, and that will make you successful. So take us for a test drive. look after their customers that Don’t get me wrong, bad Contact Leyton Mercer much better than anyone else. software and unresponsive Phone 021 706 215 or 0800 808 058 There was something that all providers can be fatal for a the winners shared in common, business, and getting the right www.avantifinance.co.nz all of them thanked their selection of software systems is crucial, but once that’s in place, it is your people who will determine your fate. No computer system can avoid that.

www.autofile.co.nz | 5 news Trade Me: CGA on all auctions

The issue of whether the - Liquidators or finance Consumer Guarantees Act (CGA) companies will not be in a position Section 7 of the Consumer Guarantees Act should apply to online auctions has to provide guarantees for items sold received significant public attention in liquidation or repossession sales. 7(2) Where any defects in goods have been specifically drawn to in recent weeks. Yet one of its chief One group in particular thought the consumer’s attention before he or she agreed to the supply, proponents, Trade Me, believes the an exemption from the would be then notwithstanding that a reasonable consumer may not have CGA should apply to all auctions. CGA necessary, were the Act to regarded the goods as acceptable with those defects, the goods Mike ‘MOD’ O’Donnell, Trade Me apply to auctions. According to the will not fail to comply with the guarantee as to acceptable quality operations manager, says the key summary, “businesses who dispose by reason only of those defects. thing is to guard against consumers of repossessed stock considered 7(3) The defects that are to be treated as having been being misled. He believes that that the CGA should not apply to specifically drawn to the consumer’s attention for the purposes bringing online and offline auctions such goods as the business has no of subsection (2) of this section are those disclosed on a written under the CGA would provide record of the history of the good, notice displayed with the goods. better and consistent consumer to impose a CGA burden on protection, a move that he says them would be unreasonable, would have public support. and could result in a lower four different auction scenarios, “Online and offline auctions price being received.” namely dealer to dealer, public to have come from very different The summary of exemption dealer, public to public and dealer places, but in consumers’ minds submissions also noted needs to to public, the CGA doesn’t apply they are largely seen as the same. that for similar reasons be based on a to the first three types of auction, As such there is good potential motor vehicle traders measure that can’t so all those auction scenarios for consumers to be caught out, do not want the CGA to be “gamed” by sellers would continue unaffected. “In the if one is covered and the other is apply to vehicle trade-ins. and buyers, so bid price is case of the fourth type of auction not. This is particularly the case It’s a fact of the trade that not useful. Age or distance travelled where consumers ‘try their arm’ for ‘hybrid’ auctions, where a many dealers who offer to take is much more suitable and deserves to find a bargain, we believe the consumer is able to participate older vehicles as trade-ins do so to be fully investigated.” dealer should draw the attention in a traditional auction through as a service, rather than as an Auckland dealer Mike of potential buyers to any known an online portal. Few consumers opportunity for profit. Selling Mapperson says that the main issues with the car, consistent would readily understand the such vehicles, of relatively difference between an auction sale, with section 7’s discussion of difference between a hybrid unknown providence, is naturally whether offline or online, and a sale acceptable quality.” auction and online auction when done via auction, to avoid the covered by the CGA, is price. the key variables and user interface burden of providing guarantees. “If it’s a $5,000 retail car on Where to from here? are largely identical.” Should the CGA apply to auctions, the yard, you put it on Trade Me The issue of the CGA and the In the Ministry of Consumer dealers argue, they will no longer at $1 reserve, or $1,000, you’ll online auctions ‘loophole’ was Affair’s summary of all submissions accept lower-end trade-ins, be lucky to get $2,500 for it. My first raised by Dr Jackie Blue in on the Consumer Law Reform and the consumer could be at a estimate is that if it’s a good car her Private Member’s Bill earlier discussion document, it notes disadvantage. you’ll get between $2,500-3,000 this year. Politicians speaking in that a number of submitters were O’Donnell says were the CGA for it. That’s the ratio of on yards, Parliament described the MTA- in favour of applying the CGA to to apply to auctions dealers could compared to auctions. advocated practice of disposing all auctions, online an offline. It still dispose of such vehicles having “If there was some way of saying of older vehicles via Trade Me also notes that many suggested acquainted themselves with ‘if the price was the same the terms auctions as ‘shocking’. exemptions, though with few Section 7 of the CGA (see sidebar). remain the same’ I would agree With the issue also included practical suggestions on how this “Section 7 of the Act motivates with that, but people buy at auction in the Consumer Law Reform could be achieved. dealers to be clear in describing and people like us sell at auction discussion document, Blue’s Bill is to In their submission, Trade the overall condition of a vehicle, knowing that the price will be be formally withdrawn. Me proposes a number of and by doing so they protect significantly less.” This major reform of consumer circumstances where an exemption themselves against unrealistic The MTA agrees, saying in a law is being conducted by the would be appropriate. In particular, claims by consumers.” release on online auctions: “People Ministry of Consumer Affairs, which - An auctioneer selling on However he also believes a buy at auction for a range of recently released a document behalf of a vendor is not usually in CGA exemption for lower value reasons, but for most it’s about summarising submissions it a position to guarantee the goods cars could work well, and provide being able to secure a ‘bargain.’ received on the document. It being auctioned; for the case of trade-ins. “We also Consumers assess the risk of buying considers the review its top priority, - An executor of an estate will see merit in an exemption from in this way against the perceived and may release a further discussion not be in a position to guarantee the CGA for older, high mileage benefits and choose to take part in document late this year, or it may the goods being sold – and in most cars as is currently available in New the auction, or not.” draft a Bill, likely to be read in cases will not be “in trade” anyway; South Wales. Importantly such an O’Donnell says that of the Parliament early next year.

6 | www.autofile.co.nz news The three main laws governing sales

With the recent increase in The Sale of Goods Act (1908) auctions, in other cases sellers there are no express limitations to interest around legislation as it The Sale of Goods Act (SOGA) cannot contract out of the CGA. its coverage. Instead, ‘acceptable relates to online auctions, Autofile governs activity during the sale Section 6 imposes on a supplier quality’ is defined as being what a thought it was a good time to of a good and is administered by or the manufacturer a guarantee reasonable consumer would regard clarify the three most common the Ministry of Consumer Affairs. that the goods are of acceptable as acceptable. The MVDT considers laws that come into play when It applies to all people ‘in trade’, quality. Generally speaking, goods the test of acceptable quality an trading a motor vehicle, not to be but may be contracted out of on are defined as being of acceptable objective one, and will consider the substituted for sound legal advice. mutual consent. quality if they are fit for the purpose circumstances of the purchase of Where the Consumer for which such goods are supplied. the vehicle when making a decision. The Fair Trading Act (1986) Guarantees Act applies the SOGA Goods must be acceptable Generally speaking, the MVDT is The Fair Trading Act (FTA) governs will have little application; but it in appearance and finish, free likely to find against dealers in cases all the activity leading up to the will apply to sales, including online from minor defects, and durable. where problems with the vehicle sale of a good. It applies to all auctions, where the CGA doesn’t. Durability is defined as what seem to indicate a pre-existing fault; people ‘in trade’, and cannot be The SOGA implies conditions a reasonable consumer, fully faults that are sudden or unexpected contracted out of. as to quality or fitness in certain acquainted with the state and are likely to be found in favour The FTA is administered by contracts of sale. Clause 16(a) states condition of the goods would of the dealer. If a fault is deemed the Commerce Commission, that where the buyer makes known regard as acceptable, in the context to be minor, then it’s the trader’s and governs practices such as to the seller the particular purpose of the nature of the goods, the right to repair that fault. However misrepresentation of goods, for which the goods are required, price, and any statements, claims, all rights fall to the consumer if advertising an item as ‘on sale’ when and relies on that seller’s judgement or representations made about the the fault is deemed to be serious. it is not, ‘bait advertising’, which is on goods traded by the seller, then goods by the supplier. In those situations the consumer the practice of luring customers there is an implied condition that The CGA is one of the strongest has the right to reject the goods in with a low price on a particular the goods shall be reasonably fit pieces of consumer protection (seek full refund), or seek repair, or product but not having sufficient for such a purpose. 16(b) states legislation in the world, since replacement (if available). amount of that product in stock, that where goods are bought and a raft of other shonky practices. by description from a seller who A likely application of the deals in goods of that description FTA to motor vehicle dealers is (whether he is the manufacturer misrepresentation of goods (see or not), there is an implied this week’s disputes page). The FTA condition that the goods shall be of applies to all instances of selling, merchantable quality. Either one of including online auctions, for these clauses may offer protections example if the information given to a consumer if a vehicle bought by in the listing were not accurate. A online auction is of poor quality. Motor Vehicle Disputes Tribunal To contract out of the SOGA for (MVDT) claim against a dealer an online auction, dealers need to for breaching the FTA is likely to note in the listing that the vehicle is result in the contract being voided, sold “as is where is with no warranty and the dealer may have to pay expressed or implied whatsoever”, compensation to the purchaser for or some such. Affixing a stamp any resulting losses. to the proof of contract or CIN Prosecution by the Commerce supplied after the contract has been Commission is likely to be more agreed on will not negate the SOGA. expensive; in 1999 a Nelson motor A MVDT claim against a dealer Trans Future 7 Voyage 40 vehicle dealer was prosecuted may result in an abatement of price osaka 27 Sep, Nagoya 28 Sep, Kawasaki 2 Oct, for advertising free three-year ordered; practically speaking, this is Auckland 21 Oct, lyttelton 23 Oct, Wellington 24 Oct, Nelson 25 Oct mechanical warranties with every likely to equal to the costs to repair vehicle purchase. The Commission the vehicle’s faults. Trans Future 5 Voyage 44 ruled that in fact he was offering osaka 9 Oct, Nagoya 12 Oct, Kawasaki 16 Oct, free mechanical breakdown The Consumer Guarantees Auckland 3 Nov, lyttelton 5 Nov, Wellington 6 Nov, Nelson 7 Nov insurance (the difference being that Act (1993) there were claim limits, exclusions, The CGA covers any problems with Trans Future 6 Voyage 41 and a $100 excess on every claim.) the product or service that may osaka 25 Oct, Nagoya 26 Oct, Kawasaki 30 Oct, and fined him $8,000. Individuals arise once the sale is completed. Auckland 18 Nov, lyttelton 20 Nov, Wellington 21 Nov, Nelson 22 Nov who breach the Fair Trading Act While the CGA doesn’t apply to sales may be fined up to $60,000, and to businesses, goods supplied by corporations up to $200,000. auction, or Trade Me-style online

www.autofile.co.nz | 7 news continued from page 1 Associations to discuss age ban

We’re not necessarily in favour world-wide, because of used age of the New Zealand fleet, moving for some years now of it, but we’re certainly open to imports, that the only sector then a rolling age ban is the way towards a standards-based discussing it. it’s impacting on is the bottom to go. But the standards that we regime for everything they do, “One of the key points is that end of the used import market. have in place at the moment are and this would go against this we wouldn’t want any further New vehicles are getting all of safety and emission focussed, and bring in an arbitrary rule standard-based restrictions the latest safety standards and and if you just have a seven or based on age. We’re not sure introduced, the argument being everything else, and again if eight year ban, then potentially how receptive Government and that the rolling age ban would we’re facing no more regulations you could be permitting vehicles the Ministry would be to such pick up all of those improved we’re quite happy, we’ll just to be imported that don’t meet a proposal, even though there standards, in every area of a continue to put in the latest those emissions or safety criteria. could be benefits for all parties.” vehicle, safety, economy, you product, and the car companies “The risk is that importers In response to the question of name it, over time, as fast as can compete on an even footing. will perhaps specify low-end whether the Ministry of Transport the New Zealand economy and “If we have this thing rolling models which meet the age has any policy on the concept of market would allow.” it gets rid of all of the older criteria, but don’t have the a rolling age ban, a spokesperson Technical standards are not vehicles, and you’re then two desired safety equipment, or offered this comment:“A rolling necessarily a better alternative model cycles –maximum – aren’t manufactured to the age ban for imported vehicles believes Vinsen. “Whatever behind the current model. It’s emission standard.” has been raised by industry in

“...the argument being that the rolling age ban would pick up all of those improved standards, in every area of a vehicle, safety, economy, you name it, over time, as fast as the New Zealand economy and market would allow.” some politician thinks is a not going to mean one more new Stockdale also sees the risk the past and has been considered bright idea on the day, is then vehicle is going to get sold, it’s with an age ban that it could see by the Ministry. We looked at it introduced as a standard. And not going to change the market lower specified vehicles imported prior to introducing the 2001 then you’re all the time debating at all because the used importers from other markets, such as Frontal Impact Rule and as part and submitting and arguing will concentrate on 6-7-8 year China or South Africa. of the investigation that lead about the standard, whereas old vehicles, it will just chop out Vinsen recognises that it to the introduction of the 2007 if you had a defined cut off those bottom end vehicles which may be hard to convince policy Vehicle Exhaust Emissions Rule. point, everybody would know we really shouldn’t be importing, makers of the merits of a ban. “This is not something we are what it was, it would give some because they’re old, unsafe, and “Even if the trade fully supports currently investigating, but we certainty, and people would polluting.” it, it will be a really hard one to are always interested to hear the rejig their business models and “We need used imports, they push through. MoT have been industry’s views on this matter.” could get on with their lives. It’s are here in the market because the uncertainty that causes real the majority of New Zealanders Age of used import vehicles entering the light fleet in 2009 (excl. drama, when people have widely can’t afford new cars, but we’ve diesel) fluctuating volumes.” always seen it as an absolute Year of first registration Petrol total Petrol % TotaL Kerr says one condition of stupidity to be able to import 2005-2009 5397 7.8% 67.40% any a discussion would be that extremely old vehicles.” 2004 9711 14.1% all existing rules remaining in AA spokesman Mark Stockdale 2003 7661 11.1% place, but he too would like to says the AA can see some merit see no further implementation for the proposal of a rolling age 2002 12504 18.1% of technical standards, including ban, and acknowledges it will 2001 11290 16.3% electronic stability control. add certainty for importers. 2000 11575 16.8% 32.60% “We’ve been advocating a However he believes an age ban seven-year age limit from day won’t necessarily achieve the 1999 5874 8.5% one, as an easy way of controlling goals that the government may 1998 2083 3.0% the market, because like the want in terms of improving the 1997 1005 1.5% IMVIA we think it’s stupid to safety standard of the fleet. have this knee-jerk lurch when “You have to ask what is it that 1996 696 1.0% regulations change. you’re actually trying to achieve 1995 106 0.2% “Our technical standards are - if the purpose of having vehicle Pre 1995 1184 1.7% so far behind technical standards standards is just to reduce the

8 | www.autofile.co.nz Why choose Link Warranties Limited to supply your mechanical warranty product? Q&A with Link Warranties owner/directors Andrew Eszes and Owen Randell

When and how did Link Warranties What do dealers receive when a nationwide service and are Link website) and we will draw the start in business? they join Link Warranties? currently recruiting for sales first of these next month. Link Warranties began as a We supply all documentation, professionals in other large Along with the draw for the watch mechanical warranty company forms, folders, the Link Manual centres throughout the country, we will also absorb the GST increase 18 months ago after we (Andrew as well as training to get dealers specifically the Waikato and on all our warranty products for at and I) spent the previous 2 years familiar with our product range Wellington districts. We’re looking least the next six months. researching the market and and make it as easy as possible for sales professionals with drive As well as the dealer incentives, developing competitive warranty for them to sell our warranties and an understanding of the great service etc we also make products. with confidence. business; they can apply online at it easy for our clients to contact Between us we have over 50 our website www.linkwarranties. us. The bottom line is, when you years in the business, selling cars What coverage does Link co.nz so we’re keen to hear from deal with Link Warranties you and warranty products and we Warranties currently have? anyone that thinks they can make deal with the shareholders of could see an opportunity for a We have our head office here in a difference, loves car sales and the company (all shareholders in locally owned business to supply Auckland and representatives the warranty business. Link are Kiwis) and effectively the comprehensive warranties to in Auckland, Tauranga and buck stops with us (Andrew and dealers at a competitive price as Christchurch, we are opening an Why would a dealer choose to put Owen), we have been dealers and well as providing the service we office in Christchurch within the their warranty business with Link? know what dealers are looking for think dealers are looking for. next month to deal with increasing Apart from the excellent service and in a warranty company. We see business in that area. competitive warranty products we ourselves as an extension to our How can Link offer such Our representatives provide the are also running dealer incentive dealers business and treat their competitive warranty products? best of service to our dealer clients schemes that will change from customers accordingly. We know We run a simple business with low and they can be assured that we time to time; currently we have that if we treat car buyers as their infrastructure costs. This means will make regular contact to ensure regular prize draws for a boutique dealers would want them to be we carry fewer overheads and can we are meeting their needs. Swiss watch, this top of the line treated this is in everyone’s best pass on the benefits of our low We are also timepiece is supplied interest and in the long term we cost operation through competitive committed to by a promotional end up with loyal long standing premiums; simple but effective. providing partner (see clients ourselves; simple really.

For further information on Link Warranties: Ph. 09 524 2951 Email [email protected] www.linkwarranties.co.nz

www.autofile.co.nz | 9 news

VEHICLES WANTED News in brief

BUYING NOW Tyre traders fined for collusion Two Trade Me sellers who admitted that they had been fixing prices for tyres, illegal under the Commerce Act, have reached settlements with the Commerce Commission. miles motor group The sellers, Tyre Guys Limited and Adens Trading Limited, contacted each other via comments on Trade Me pages, text messages and emails. Between 12 and 27 January 2010, the owner of Tyre Guys Toyota Mazda Honda Limited sent his prices via email for six tyre brands to Adens Trading Nissan Lexus VW Limited, who then matched those prices for three of the brands. Both traders made sales at the fixed prices. We are always looking to purchase Tyre Guys Limited’s owner also admits contacting Adens Trading Limited in July and August 2009 and attempting to fix prices by NZ NEW CARS AND COMMERCIALS suggesting that they both increase their prices according to a PAuL curin 0274 333 303 [email protected] specific pricing formula, however, this suggestion was not acted on at that time. Adens Trading Limited’s owner became aware that this behaviour might breach the Commerce Act when the Commission issued a warning in February 2010 to another Trade Me seller who, in the Commission’s view, attempted to fix prices for LED bicycle lights. Both parties admitted their behaviour, stopped it and have agreed BUYING NOW to undertake training at their own expense, so that they know and understand the requirements of the Commerce Act. The Commerce Commission said that their decision to settle with the parties took BRETT HARRIS 029 293 1232 FARmER AUTOvIllAGE www.farmerautovillage.co.nz into account that both traders fully cooperated. The Commission acknowledged Trade Me’s assistance with the matter. Karl Briggs 0274 721 551 [email protected] www.inghammotorgroup.co.nz Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ. Search for NZ’s most efficient vehicle The AA Energywise Rally is taking place 11-14 October, and AlwAys Buying Any Vehicle oVer $500 considered competitors will drive 1,780 kilometres around the North Island to ContaCt our staff today promote fuel efficient vehicles and fuel efficient driving techniques. Adam Winter ph: 021 635 352 e: [email protected] Kane Owen ph: 021 356 300 e: [email protected] The Rally takes place every two years and is jointly organised by the AucklAnd Vehicle consultAnts AA, the Energy Efficiency and Conservation Authority (EECA), and Gull Petroleum New Zealand. EUROPEAN CARS WANTED Vehicles are pitted against each other in eight different categories, ranging from micro to large-lifestyle vehicles, for the title of the most 2002 onwards fuel efficient vehicle in each class. The Supreme Winner is the vehicle that costs the least to complete the rally, based on fuel consumption contact: Reg Ollay 0274 945 391 and any applicable road user charges. 09 3788120 or 09 3788121 Stella Stocks, General Manager AA Technical Services, says “everyone email: [email protected] AUTO IMPORTERS LTD wants to make the most of each tank of fuel. The AA Energywise Rally shows that choosing a fuel efficient car can save drivers significant amounts of money.” EECA Chief Executive Mike Underhill says the Rally also demonstrates that small changes to the way people drive can make a significant impact on their fuel consumption. “Rally participants will be driving as efficiently as possible and it’s incredible what a difference a few simple efficient driving techniques can make. You can cut your fuel use by as much as 20% - that’s like having two months free fuel every year!” Gull Petroleum, known for giving value to Kiwi motorists, is the major sponsor and will provide the petrol and diesel for all rally TO ADVERTISE HERE CONTACT: vehicles. The rally starts in Auckland, the first leg to Wanganui, the second Ph 0508 288 863 or 021 455 775 day is Wanganui to Wellington and then up to Palmerston North, the advertising@autofi le.co.nz next day on to Hastings, Napier and finishing in Rotorua, and the final day is on to Taupo and finally back up to Auckland.

10 | www.autofile.co.nz new cars Electric Jag and four-door Lotus

Jaguar’s gorgeous Paris Jets. Spinning at Show car, the C-X75 (right), marks 80,000rpm, the 35kg the brand’s 75th year with a turbines generate technological showcase that points 70kW of power to future Jaguar sports cars. which is stored in The electric-engined car can batteries for transmission reach 330km/h (205mph) and hit to the electric motors. 100km/h in 3.4 seconds. Its four Because each wheel has its 145kW (195bhp) electric motors own electric motor, the C-X75 control system. – one for each wheel – develop a has four-wheel drive without the The C-X75 has excellence of its cars’ handling, combined output of 780bhp. Peak weight disadvantages of a purely an extruded and bonded unveiled its first four-door at Paris. torque is 1600Nm. mechanical set-up. Torque can aerospace-inspired aluminium The Eterne, left, is powered by a The C-X75’s zero emissions be vectored individually to each chassis clad in alloy panels. 5.0-litre V8 developing 456kW. range of 110km – running solely on wheel, creating an infinitely and Jaguar executives at the Paris Lotus says the Eterne is an battery power – can be extended instantaneously adjustable traction show hinted that the marque is all-new design and is not an to a potential 900km by engaging and stability considering expanding its range evolution of an existing two- two micro gas-turbines, with a more compact sports car door. It says the car is “compact developed jointly than the XKR and with a sports yet spacious, high performance with Bladon sedan that will slot in below the XF. yet low emissions, relatively In another exciting lightweight yet still reassuringly development, British sports solid” and is “the ultimate four car maker Lotus, noted for the door sports car.”

No space compromise in Jazz Hybrid Honda debuted its Jazz flat to provide a huge boot space Audi quattro show car Hybrid at Paris and says fitting or vertically to accommodate tall the Integrated Motor Assist (IMA) items within the car. evokes rally classic hybrid system hasn’t compromised The Jazz shares its IMA system the car’s load carrying space. with the Insight and CR-Z hybrids. Audi has evoked the spirit the body so the car weighs The cargo floor area remains It has the same 1.3 litre i-VTEC of one of the most fearsome 1300kg, the same as the at the same level as the petrol engine as the Insight and has CO2 rally cars of all time, the 1984 original Sport quattro. model’s. Honda has mounted emissions of 104 grams/km. Like Group B short-wheelbase Sport Like the Sport quattro, the IMA battery pack and power the Insight and Civic Hybrids, the quattro, in a Paris concept car the show car is a two-seater. control unit under the boot floor, Jazz can run on the electric motor that showcases the German The heavily modified body keeping the normal cargo area. The alone at medium and low speeds, marque’s high-performance is primarily aluminium, with Magic Seats still fold entirely contributing to a combined fuel technology carbon fibre bonnet and rear consumption figure of 4.4 The quattro concept is hatch. The wheelarches have litres/100km. based on theV8-powered RS prominent flares. 5 Coupe, but engineers have The quattro concept has shortened the wheelbase nine-inch wide, 20-inch by 150mm, lowered the diameter, seven-spoke alloy roofline 40mm, fitted an inline wheels, a six-speed manual five-cylinder turbocharged gearbox and can hit 100km/h petrol engine developing in 3.9 seconds. Top speed is 300kW/480Nm and lightened more than 296km/h.

www.autofile.co.nz | 11 disputes

Purchaser’s rejection dismissed, The Case: The purchaser wished to reject but trader left to foot the repair bill the vehicle, but had not given the trader the opportunity to rectify the fault Background was not serious and the trader and therefore the Tribunal The Decision: On 14 November 2009 the thought that a main bearing had finds the vehicle did not The Tribunal advised the purchaser bought a 1999 Nissan gone in the engine, and offered comply with the guarantee of purchaser to take the vehicle to Terrano from the trader for $17,500. to either replace the engine with acceptable quality in the CGA. the trader for repairs The purchaser wished to reject the a second hand motor to the value The Tribunal considered At: the Motor Vehicle Disputes vehicle because he said its engine of $6,500 with the purchaser that the faults found to exist in Tribunal, Hamilton has serious oil leaks. being required to contribute the vehicle at the time it had its The trader agreed that the $2,000 of this cost, or the trader warrant of fitness inspection on 10 vehicle’s engine leaks oil and would replace the vehicle with May 2010 were all capable of being trader refused or failed to remedy offered to repair the oil leaks, but an alternative vehicle of the same remedied by the trader. However the faults within a reasonable denied that the purchaser was value but with a reduction for the the purchaser did not give the time, the Tribunal would not entitled to reject the vehicle since distance driven by the purchaser. trader a reasonable opportunity to have jurisdiction to make any the fault was not serious. The purchaser did not consider do so. The Tribunal finds as a fact adjustment in the trader’s either offer acceptable and rejected that the trader was not required favour by way of a mileage/ The evidence the trader’s offer the next day. to remedy the defects with the depreciation allowance, because The purchaser bought the Terrano The trader told the Tribunal that vehicle before the purchaser the Act provides no means of for $17,500 on 14 November 2009, after examining the vehicle in May purported to reject it on 27 April. compensating the trader for the when the vehicle’s odometer was he told the purchaser that he did The Tribunal was also not purchaser’s use of the vehicle. 86,648kms. The purchaser says the not think there was a large problem satisfied, as it must be on a It has been suggested that the vehicle went alright for about a with the engine and that the trader balance of probabilities, that the absence of any such jurisdiction month and a half but in December would be happy to fix it. The trader purchaser proved the oil leaks is a deliberate policy of the 2009 it started to use about 1.5 says that the vehicle was serviced were serious. The Tribunal would Legislature in order to create to 2 litres of oil a month which on 14 November 2009 and given have expected the purchaser to an incentive for the suppliers of the purchaser put in the engine a WOF inspection at the same prove with a compression test goods to act promptly on any himself. The distance he was time before being supplied to the and more extensive technical valid notice of rejection by taking travelling in the vehicle equated to purchaser. He pointed out that the evidence where the oil leak was the goods back and providing a about 3,200kms a month. purchaser did not have the vehicle coming from and what it would refund at that stage. In April 2010 he says he noticed serviced at all in travelling over cost to rectify. The purchaser’s oil spots on his driveway, on the 17,000kms until he took the vehicle application to reject the vehicle Bruce Dell’s comment grass and wherever he parked to the mechanic’s on 22 April 2010. was therefore dismissed. The Purchaser purported to reject the vehicle. He contacted the He says his recommendation would The Tribunal considered that the vehicle on the basis that trader, who asked the purchaser have been to have the vehicle the purchaser should take the the engine had serious oil leaks. to bring the vehicle in to have the serviced every 7,500kms. vehicle back to the trader and The Dealer was happy to fix the trader check it. Instead the vehicle require it to rectify the faults that repairs but did not consider them was taken by the purchaser for a The Tribunal’s Decision exist in the vehicle. If the trader to be serious. mechanical service. The mechanic The Tribunal considered that a were to find that the oil leak is, Pleasingly the Purchaser’s who examined the vehicle wrote reasonable purchaser of a 10 in fact, so serious as to require application to reject the vehicle a letter saying that the oil leak year old diesel vehicle with only the replacement of the vehicle’s was dismissed. Basically, the was significant, and would require 86,648kms on the odometer for engine, the trader should be Tribunal found that on the balance either an engine replacement or at which they had paid $17,500 would aware that it is its responsibility to of probabilities, it was not proven least an overhaul. probably not regard such oil leaks in rectify that fault without requiring that the oil leak was serious. The On 10 May the purchaser spoke a vehicle within the first six months a cash contribution from the Dealer was to rectify the problem. to the trader who again asked of ownership as acceptable. In purchaser. The Tribunal noted that Again, the usual “acceptable him to have the vehicle brought the Tribunal’s view they indicate if the matter were to have to come quality” under The Consumer Bruce Dell Law – “problem solver” to the trader for assessment. After the vehicle was not as durable as back to the Tribunal on a fresh Guarantees Act discussed by the assessing the vehicle, the trader a reasonable purchaser of such a applicationauto fromfi le theare purchaserdelighted to have Tribunal,Bruce as andpart whatof the wouldAutofi lebe team the advising our readers telephoned to say that the problem vehicle would regard as acceptable to rejecton the the vehicle lessons because to be learnedthe fromremedies. past Motor Vehicle Disputes Tribunal cases If you require legal advice give Bruce a call on 09 570 5036

Bruce Dell Law – “problem solver” . Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on past Motor bd Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036 law 12 | www.autofile.co.nz

. Problem bd solver law disputes

Online auction listing falls The Case: The purchaser said that she was foul of Fair Trading Act misled by an online auction listing The Decision: checked over by her mechanic as money. He refused and said that The Tribunal agreed, and said the Background trader could not contract out of On 31 March 2010, the purchaser the car appeared a bit “floaty” when he had already paid the $300. the FTA bought by online auction a 1992 driven. The mechanic, qualified The trader submitted that Mitsubishi Mirage $2,700 from the and with over ten years experience, a settlement had been reached At: the Motor Vehicle Disputes trader. The purchaser says she was gave evidence to the tribunal by where the trader paid the Tribunal, Wellington misled by the listing for the car. telephone. He confirmed that there purchasers $300 in settlement The trader’s position is that the were a number of problems with of the purchasers’ claim. In terms trader has no liability, principally the car that in his view indicated the of the allegation that the listing purchaser was also entitled to be because the terms and conditions of vehicle should not have passed a was misleading, the trader referred reimbursed for the mechanical the auction contain an agreement warrant of fitness inspection at the to the terms and conditions - in costs of $599.25. The trader had that by bidding on the auction, the time of sale. particular clauses 5 and 6 (set out already contributed $300 towards purchaser is satisfied“sight unseen” Problems included a perished above). Relying on those clauses, these costs, and was therefore and that “descriptions of the vehicles power steering belt needing the trader submitted that it was the ordered to pay the purchaser are estimates only”. The trader also replacement, and the front sway- purchaser’s responsibility to satisfy $2,999.25, and the purchaser to submitted that the dispute had bar bushes were coming apart herself as to the state of the car return the vehicle to the trader. already been settled by payment of and needed replacement. The prior to purchase. $300 to the purchaser. mechanic was firm in his view that Bruce Dell’s comment these problems would have been The finding The Purchaser claimed The evidence evident at the time the WoF was The Tribunal considered whether misrepresentations in the listing On 31 March 2010, the purchaser issued and that the car should the listing for the car was for the vehicle. was the successful bidder and have failed the warrant because of misleading and in breach of the The Dealer argued that the bought the car for $2,700 for those problems. Fair Trading Act 1986, concluding terms and conditions of the auction her daughter. At the time the The right rear tyre was also that the purchaser was misled. The contained agreement that the car was purchased the car had worn and the left rear brake wheel Tribunal was satisfied in this case purchase was “sight unseen” and an odometer reading of at least cylinder was seized. The mechanic that the purchaser would not have that descriptions of the vehicles are 99,941 kilometres (this being the said that although these problems purchased the car for her daughter “estimates only”. odometer reading recorded on were serious enough at the time had she been appraised of the true He also indicated that he had the registration papers as at March of inspection to cause the car to state of the car, and was satisfied already settled the issue by paying 2010). The auction listing had fail a WoF inspection, he could that had the purchaser known the complaining Purchaser $300. contained the list: not categorically say that those the truth about the gear box she The Tribunal considered whether problems would have progressed would have been discouraged from The Fair Trading Act was breached “New WOF, Only 99,000ks, to a level significant enough to fail purchasing the car on the basis of in respect of misleading advices in CAM-BELT DONE AT 56,000 Ks, a WoF at the time of sale. that factor alone. the ad. The Tribunal found that there Good tyres (near new), Good motor, After his inspection, the The Tribunal did not accept that was a breach. The Purchaser was Good gearbox, mechanic carried out a number the trader is relieved of any liability entitled to be reimbursed for the Don’t miss out! … of small repairs at a cost of through the operation of clauses 5 mechanical costs by a payment of a $599.25. The purchaser contacted or 6 of the terms and conditions of further $299.25 but the Dealer was TERMS AND CONDITIONS […] the trader about the problems the auction. also ordered to pay the Purchaser Descriptions of the vehicles are with the car. An agreement was The accepted approach to the $2,999.25 and the Purchaser then had estimates only. reached that the trader would pay assessment of loss or damage to return the vehicle to the Dealer. 6 By bidding on this auction it is the purchaser $300. in the context of a breach of the The lesson to be learnt here is deemed that you have seen the The purchaser’s evidence was Fair Trading Act is to consider the to not to attempt to contract out vehicle and / or satisfied sight unseen. that subsequently she formed the extent to which the claimant is of your obligations by law as you view that she had been misled about worse off because of the breach of basically cannot contract out of About a month after purchasing the the car. She called the trader over the Act. In those circumstances it your provisions of The Fair Trading car, on Wednesday 28th April, the the weekend and asked him to come was appropriate that the contract Act with impunity and really, that is purchaser arranged for the car to be and collect the car and refund her of purchase be declared void. The pretty much impossible.

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www.autofile.co.nz | 13 industry statistics

Around the country Total New Cars 6298 2009: 5593  12.6% Car sales - September 2010 Total Used Cars 7430 2009: 5919  20.3%

Whangarei NEW: 159 2009: 116  37.1% Used: 158 2009: 93  41.1% Thames NEW: 39 2009: 31  25.8% Used: 2009: 31  % Auckland 41 24.4 NEW: 2738 2009: 2540  7.8% Used: 3728 2009: 2947  21.0% Tauranga NEW: 229 2009: 180  27.2% Used: 301 2009: 248  17.6% Hamilton NEW: 384 2009: 294  30.6% Rotorua Used: 475 2009: 387  18.5% NEW: 64 2009: 33  93.9% Used: 69 2009: 64  7.3% New Plymouth NEW: 125 2009: 90  38.9% Used: 120 2009: 102  15.0% Gisborne  Wanganui NEW: 31 2009: 29 6.9%  NEW: 44 2009: 51  13.7% Used: 49 2009: 46 6.1% Used: 54 2009: 39  27.8% Napier NEW: 155 2009: 114  36.0% Palmerston North Used: 152 2009: 108  29.0% NEW: 182 2009: 170  7.1% Used: 152 2009: 110  27.6% Masterton NEW: 36 2009: 27  33.3% Nelson Used: 50 2009: 44  12.0% NEW: 70 2009: 68  2.9%  Used: 96 2009: 98 2.1% Wellington NEW: 599 2009: 474  26.4% Westport Used: 648 2009: 507  21.8% NEW: 7 2009: 3  133.3%  Used: 5 2009: 6 20.0% Blenheim NEW: 52 2009: 49  6.1% Greymouth Used: 24 2009: 34  41.7% NEW: 17 2009: 3  466.7% Used: 28 2009: 21  25.0% Christchurch NEW: 1049 2009: 1049  0% Used: 890 2009: 738  17.1%

Timaru NEW: 49 2009: 38  29.0% Used: 75 2009: 55  26.7%

Oamaru NEW: 19 2009: 3  533.3% Used: 18 2009: 11  38.9%

Dunedin NEW: 181 2009: 154  17.5% Used: 206 2009: 160  22.3%

Invercargill NEW: 69 2009: 77  10.4% Used: 91 2009: 70  23.1%

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14 | www.autofile.co.nz madame butterfl y v3 loAdiNg Osaka 28 sept, Nagoya 30 sept, Yokohama 29 sept ArriviNg Auckland 24 oct, Wellington 26 oct, Lyttelton 27 oct

saracen star v6 loAdiNg Osaka 14 oct, Nagoya 16 oct, Yokohama 17 oct ArriviNg Auckland 5 Nov, Wellington 7 Nov, Lyttelton 8 Nov

hoegh Xiamen v1 loAdiNg Osaka 28 oct, Nagoya 29 oct, Yokohama 30 oct ArriviNg Auckland 24 Nov, Wellington 26 Nov, Lyttelton 27 Nov industry statistics

New Passenger Vehicle Sales by Make September 2010 New Passenger Registrations 2006 2007 2008 2009 2010 MAKE Sep ‘10 Market Share MAKE Sep ‘09 9000 TOYOTA 1479 23.48% TOYOTA 1504 Courtesy of MTA

FORD 827 13.13% FORD 642 8000 HOLDEN 491 7.80% HOLDEN 508 MAZDA 477 7.57% MAZDA 439 7000 HYUNDAI 432 6.86% HYUNDAI 376 6000 SUZUKI 393 6.24% SUZUKI 354 MITSUBISHI 337 5.35% NISSAN 249 5000 NISSAN 303 4.81% MITSUBISHI 245

VOLKSWAGEN 247 3.92% HONDA 210 4000 SUBARU 189 3.00% KIA 202 KIA 188 2.99% VOLKSWAGEN 157 3000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec HONDA 187 2.97% SUBARU 153 AUDI 116 1.84% MERCEDES-BENZ 109 BMW 111 1.76% AUDI 98 New Passenger Vehicle Sales by Model - top 20 Sept 2010

PEUGEOT 103 1.64% BMW 83 MAKE MODEL Sep ‘10 MAKE MODEL Sep ‘09 MERCEDES-BENZ 81 1.29% PEUGEOT 52 Toyota COROLLA 631 Toyota COROLLA 671 DODGE 48 LEXUS 30 Toyota CAMRY 356 Ford FALCON 309 LEXUS 46 DAIHATSU 29 Ford FOCUS 280 Holden COMMODORE 290 SKODA 31 MINI 20 Ford FALCON 253 Toyota CAMRY 272 DAIHATSU 22 VOLVO 18 Toyota YARIS 217 Suzuki SWIFT 217 JEEP 21 JEEP 17 Suzuki SWIFT 210 Toyota YARIS 188 PORSCHE 20 CHRYSLER 15 Mazda MAZDA3 173 Mazda MAZDA3 158 MINI 18 CITROEN 12 Hyundai I30 151 Mazda MAZDA6 157 SSANGYONG 16 ALFA ROMEO 11 Volkswagen GOLF 144 Ford MONDEO 137 FACTORY BUILT 15 SKODA 10 Mazda MAZDA6 134 Toyota HIGHLANDER 124 CITROEN 14 PORSCHE 9 Holden COMMODORE 124 Mazda MAZDA2 111 LAND ROVER 14 DODGE 9 Holden CRUZE 120 Mitsubishi OUTLANDER 109 VOLVO 12 JAGUAR 7 Holden CAPTIVA 118 Hyundai I30 102 ALFA ROMEO 11 LAND ROVER 6 Ford MONDEO 115 Holden CRUZE 95 FIAT 10 FIAT 5 Ford FIESTA 103 Hyundai GETZ 89 GREAT WALL 8 GEELY 4 Mazda MAZDA2 102 CHRYSLER 6 PROTON 2 Mitsubishi OUTLANDER 84 ASTON MARTIN 5 FACTORY BUILT 2 Nissan QASHQAI 83 JAGUAR 5 BENTLEY 2 Holden BARINA 80 GEELY 4 SMART 1 Hyundai IX35 78 BENTLEY 3 RENAULT 1 CADILLAC 2 MASERATI 1 RENAULT 2 FERRARI 1 Top 5 Selling Rental Models Sept 2010

CHEVROLET 1 MAKE MODEL Sep ‘10 MAKE MODEL Sep ‘09 MASERATI 1 TOYOTA COROLLA 360 TOYOTA COROLLA 459 MORGAN 1 TOYOTA CAMRY 261 TOYOTA CAMRY 242 ROLLS-ROYCE 1 FORD FOCUS 159 FORD FALCON 190 FORD FALCON 108 TOYOTA HIGHLANDER 80 TOTAL 6298 TOTAL 5593 KIA CERATO 58 TOYOTA YARIS 71

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16 | www.autofile.co.nz industry statistics GST gives new vehicle market extra lift The GST-rise sparked some over the next couple of months Davis says that while get afew more next month or early business spending, you could bring it forward, rental sales were a factor, the month after. It’s a challenge says Vern McLaren, National though you’ve got to balance government buying is yet to for everyone, we’ve got some customer service manager at that out against the cash flow begin in earnest. “Government stock sitting there that we’ve set FleetPartners. “September is impact on the business.” purchasing has started, but aside for the All of Government traditionally a good month, Toyota managed a market only in dribs and drabs, and we [contract], but the market is because it’s spring, people share in September of 25 haven’t seen any big bulk orders going okay so it’s eating away at come out of hibernation, the percent of passenger vehicle as yet. We’re hoping that we that stock.” rental cars market takes off, and sales, and Andrew Davis, probably GST has been just one Toyota New Zealand’s manager New Commercial Vehicle Sales by Make September 2010 more thing to give the market a of dealer sales and operations little bit of impetus. says it was a strong month for MAKE Sep ‘10 Market Share MAKE Sep ‘09 “It seems like there was a retail sales. TOYOTA 418 25.39% TOYOTA 360 fair amount of notional buying “I think there was some FORD 253 15.37% FORD 213 there. The ongoing cost of lift in terms of pre-GST, but NISSAN 241 14.64% MITSUBISHI 206 fringe benefit tax may have it probably wasn’t as large as MITSUBISHI 132 8.02% NISSAN 126 encouraged some businesses to we’d thought. But we were HOLDEN 102 6.20% MAZDA 110 bring forward their purchases.” coming to the end of quite a MAZDA 82 4.98% HOLDEN 102 Fringe benefit tax is good campaign that had been MERCEDES-BENZ 55 3.34% MERCEDES-BENZ 81 calculated based on the GST running over the last quarter, ISUZU 46 2.79% HINO 33 when the vehicle was supplied. so we had dealers pushing a lot HYUNDAI 43 2.61% FIAT 33 For a $30,000 vehicle that will for retail sales and closing deals result in savings of around within the campaign. We had MITSUBISHI FUSO 40 2.43% ISUZU 30 $300 per year, says McLaren. “It the best passenger result of the VOLKSWAGEN 38 2.31% VOLKSWAGEN 29 doesn’t sound a lot, but if you year, which was good, because FIAT 35 2.13% HYUNDAI 28 have a large fleet and you were we’ve been strongly commercial HINO 29 1.76% GREAT WALL 26 ready to replace your vehicles through the Fieldays period.” VOLVO 23 SCANIA 19 SCANIA 18 MAN 11 New Commercial Vehicle Sales by Model - top 15 Sept 2010 GREAT WALL 17 IVECO 7 KENWORTH 11 SUZUKI 5 MAKE MODEL Aug ‘10 MAKE MODEL Aug ‘09 NISSAN DIESEL 9 FACTORY BUILT 5 Toyota HILUX 261 Toyota HILUX 225 DAF 7 DAF 5 Nissan NAVARA 219 Ford RANGER 144 MAN 7 VOLVO 4 Ford RANGER 142 Mitsubishi TRITON 135 FREIGHTLINER 6 LAND ROVER 4 Toyota HIACE 139 Toyota HIACE 119 IVECO 6 FREIGHTLINER 4 STERLING 5 MACK 3 Mitsubishi TRITON 92 Nissan NAVARA 106 KIA 4 STERLING 2 Holden COLORADO 85 Mazda BT-50 88 SUZUKI 4 KIA 2 Mazda BT-50 66 Holden COLORADO 79 MACK 3 KENWORTH 2 Ford TRANSIT 64 Mercedes-benz SPRINTER 65 PEUGEOT 3 INTERNATIONAL 2 Mercedes-Benz SPRINTER 44 Ford TRANSIT 59 FACTORY BUILT 2 TADANO 1 Hyundai H1 40 Mitsubishi L300 34 LAND ROVER 2 ERF 1 Mitsubishi L300 40 INTERNATIONAL 1 Fiat DUCATO 32 OPEL 1 Mitsubishi fuso CANTER 24 SSANGYONG 1 Ford TRANSIT 21 WESTERN STAR 1 Volvo FM 20 TOTAL 1646 TOTAL 1453

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www.autofile.co.nz | 17 industry statistics

Used Passenger Vehicle Sales by Make September 2010 MAKE Sep ‘10 Market Share MAKE Sep ‘09 Strong spring buying yet to materialise TOYOTA 2085 28.06% TOYOTA 1572 NISSAN 1228 16.53% NISSAN 959 Used import sales continue to sales, down from 690 in August. MAZDA 952 12.81% HONDA 768 be flat as New Zealand emerges But fourth-placed Hamilton swam HONDA 857 11.53% MAZDA 628 from winter into the optimism of against the trend, notching up 475 spring, with dealers looking for a sales, an increase of 18 over August. SUBARU 621 8.36% SUBARU 528 much-needed upswing. In Dunedin, the other main MITSUBISHI 379 5.10% MITSUBISHI 338 In fact, figures just released centre, sales fell to 206 (from 227 BMW 274 3.69% BMW 195 show that in September total sales in August). VOLKSWAGEN 180 2.42% SUZUKI 152 dipped slightly, completing the Snow-hammered Invercargill SUZUKI 178 2.40% VOLKSWAGEN 146 month at 7430. That’s 100 fewer remained static with 91 sales – one FORD 146 1.97% FORD 138 than August which itself was more than in August – and it was AUDI 81 1.09% HYUNDAI 70 slightly down on July. a similar story in Timaru where the MERCEDES-BENZ 62 MERCEDES-BENZ 60 The much-touted pre-GST rush September total of 75 was two CHEVROLET 54 AUDI 51 seems to have failed to materialize, fewer than the previous month. HYUNDAI 46 PEUGEOT 39 with the biggest market, Auckland, Year-on-year, though, September VOLVO 38 CHEVROLET 38 racking up 3728 sales, just 10 more sales were generally well ahead of the PEUGEOT 36 VOLVO 35 than were recorded in August. same month of 2009. In Whangarei JAGUAR 32 CHRYSLER 26 Earthquake-ravaged Christchurch they were up 41.14 percent, in Timaru CHRYSLER 27 JAGUAR 18 remained the second-biggest they rose 26.67 percent, Dunedin LAND ROVER 16 SAAB 17 market, though understandably in a 22.33 percent, Auckland 20.95 DAIHATSU 15 DAIHATSU 13 city rocked by more than 1000 after- percent, Hamilton 18.53 percent and ALFA ROMEO 14 LAND ROVER 13 shocks, total sales there were down Christchurch 17.08 percent. ISUZU 14 ALFA ROMEO 12 on August. Cantabrians bought Nelson, Blenheim and Westport HOLDEN 11 HOLDEN 12 890 used imports in September, recorded year-on-year sales JEEP 9 OPEL 12 compared with 962 in August. percentage drops, though the actual MINI 8 ISUZU 9 Wellington recorded the third numbers of vehicles weren’t that OPEL 8 RENAULT 7 highest total in September, with 648 much lower than in 2009. SAAB 6 FIAT 6 RENAULT 5 MINI 6 Used Passenger Vehicle Sales by Model - Top 25 Sept 2010 ASTON MARTIN 4 JEEP 5 MAKE MODEL Sep ‘10 MAKE MODEL Sep ‘09 DODGE 4 PORSCHE 5 Toyota COROLLA 377 Subaru LEGACY 288 LEXUS 4 CITROEN 4 Subaru LEGACY 371 Toyota COROLLA 238 FIAT 3 LEXUS 4 Toyota ESTIMA 338 Honda ODYSSEY 213 MORRIS 3 FERRARI 3 Mazda ATENZA 259 Toyota VITZ 195 ROVER 3 MERCURY 3 Nissan PRIMERA 215 Toyota ESTIMA 184 FERRARI 2 BUICK 2 MORGAN 2 CADILLAC 2 Toyota VITZ 196 Mazda DEMIO 182 PLYMOUTH 2 DODGE 2 Mazda DEMIO 188 Subaru IMPREZA 158 PONTIAC 2 OLDSMOBILE 2 Subaru IMPREZA 163 Nissan PRIMERA 152 PORSCHE 2 ROVER 2 Honda STREAM 162 Bmw 3 Series 145 ROLLS-ROYCE 2 SKODA 2 Honda ODYSSEY 156 Nissan MARCH 130 SMART 2 SMART 2 Honda ACCORD 151 Nissan BLUEBIRD 129 VAUXHALL 2 VAUXHALL 2 Nissan BLUEBIRD 147 Mazda ATENZA 128 AUSTIN 1 ASTON MARTIN 1 Mazda AXELA 146 Honda CIVIC 125 BUICK 1 AUSTIN 1 Nissan WINGROAD 141 Nissan WINGROAD 124 CADILLAC 1 DE TOMASO 1 Honda CIVIC 127 Mitsubishi LANCER 123 DATSUN 1 LAMBORGHINI 1 Mazda MPV 126 Honda ACCORD 98 HUMBER 1 LINCOLN 1 Toyota ALTEZZA 126 Honda FIT 95 KIA 1 LOTUS 1 Toyota IPSUM 125 Honda STREAM 93 MASERATI 1 LVVTA 1 Nissan TIIDA 124 Toyota FUNCARGO 92 MERCURY 1 MG 1 Suzuki SWIFT 118 Toyota IST 89 MG 1 PLYMOUTH 1 Honda FIT 107 OLDSMOBILE 1 PONTIAC 1 Toyota ALLEX 94 WOLSELEY 1 WILLYS 1 Mitsubishi LANCER 88 Volkswagen GOLF 85 Total 7430 Total 5919 Mazda TRIBUTE 82

18 | www.autofile.co.nz industry statistics

Used Import Passenger Registrations

2006 2007 2008 2009 2010 Strong spring buying yet to materialise 14000 Courtesy of MTA 12000 The flatness of the market of 2009 showed a strong upswing is confirmed by a look at the after tracking flatly from August to 10000 month-to-month totals of the October, lifting from around the 8000 best-selling makes. 6000 mark in October to a shade 6000 Chart-topping Toyota’s under 8000 in December. September sales of 2085 were 55 up MTA marketing and 4000 on August; second-placed Nissan communications manager, Ian 2000 racked up 1228, a rise of 67; Mazda’s Stronach, sees the outlook as 0 952 was 17 ahead of the previous positive though he thinks the Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec month; fourth-placed Honda’s 857 improvement will be gradual. was 35 down on August. “It’s not quite the light at the end Subaru rounded out the top five of the tunnel yet. I think it will be long Used Commercial Vehicle Sales by Make Sept 2010 with 621 sales, a drop of 26. and slow, a one in 15 gradient climb.” MAKE Sep ‘10 Market Share MAKE Sep ‘09 BMW was the best-selling He says there was a little bit of NISSAN 91 42.33% TOYOTA 96 used import European marque in pre-GST increase movement in TOYOTA 48 22.33% NISSAN 86 September with 274 sales, followed the new car sector, though finance MAZDA 21 9.77% ISUZU 28 by Volkswagen (180) and Audi company collapses had seen many ISUZU 13 6.05% MITSUBISHI 26 (81). VW and Audi recorded slight older people – the traditional new- FORD 10 4.65% MAZDA 19 improvements on their August totals, car private buyers – knocked out of CHEVROLET 7 3.26% FORD 7 though BMW’s sales fell 31. the market because they had lost MITSUBISHI 7 3.26% CHEVROLET 5 Among the niche performers, their investments. FIAT 4 VOLKSWAGEN 4 Jaguar showed a useful increase “They can’t suddenly re-grow SUZUKI 3 FIAT 3 month on month, its September total their money and I think a lot of RENAULT 2 GMC 3 of 32 being eight ahead of August these people will be out of the VOLKSWAGEN 2 HINO 3 and almost double its September market for a good while.” CADILLAC 1 DODGE 2 2009 sales level. But he feels some small Year-on-year, all the major used business owners may have taken DEMAG 1 LAND ROVER 2 import players were ahead of their the attitude that cars would never DODGE 1 HOLDEN 1 September 2009 sales levels. be cheaper than they had been FACTORY BUILT 1 LVVTA 1 Dealers are looking forward to in September and it was as good IVECO 1 MERCEDES-BENZ 1 higher levels of inquiry and foot a time as any to upgrade their KIA 1 SUBARU 1 traffic as spring takes hold following vehicles before GST rose. “There’s VAUXHALL 1 SUZUKI 1 a harsh winter. The final two months been a bit of that going on.” Total 215 Total 289

Used Commercial Vehicle Sales by Model - Top 20 Sept 2010 Business as usual after MAKE MODEL Sep ‘10 MAKE MODEL Sep ‘09 NISSAN CARAVAN 41 TOYOTA HIACE 71 Christchurch quake NISSAN VANETTE 41 NISSAN CARAVAN 43 TOYOTA HIACE 28 NISSAN VANETTE 33 MTA’s Ian Stronach, says the September, 1829 the previous MAZDA BONGO 17 ISUZU ELF 18 association’s Christchurch members month and 1800 in July,” says ISUZU ELF 9 MAZDA BONGO 18 have largely bounced back from Stronach. “So they were down; it TOYOTA DYNA 6 MITSUBISHI EXPRESS 15 the September 4 earthquake and its was a little bit quieter.” NISSAN ATLAS 5 TOYOTA DYNA 11 aftershocks and it’s business as usual. He says the MTA supported its FIAT DUCATO 4 NISSAN ATLAS 9 “Things picked up towards the 400-plus Canterbury members with TOYOTA TOWNACE 4 MITSUBISHI DELICA 7 later part of September,” he says. four half-page adverts in The Press CHEVROLET EL CAMINO 3 ISUZU FORWARD 5 “Most got back into business quickly.” newspaper. MAZDA TITAN 3 CHEVROLET PICKUP 3 New car sales in Christchurch The adverts took the line that the MITSUBISHI DELICA 3 FIAT DUCATO 3 were well up on August. Used Christchurch motor trade was down SUZUKI CARRY 3 import sales had also held up well but not out following the quake and TOYOTA COASTER 3 and were 150 ahead of September was still open for business, ready TOYOTA LITEACE 3 2009. He says some of the new and waiting for work. CHEVROLET SILVERADO 2 car business would have been He said the quake had completely company or rental firm sales destroyed very few MTA members’ FORD F100 2 Change of ownership figures premises. In general members had FORD FALCON 2 were down a little on August. been able to meet customers’ car FORD TRANSIT 2 “Trades to public were 1750 in buying and servicing requirements. ISUZU COMO 2

www.autofile.co.nz | 19 industry profile Four decades of radical change

At the start of the 1970s, New they made at the rate of 120 an hour. prices. Merrie says the NZ market is “When the assembly line was Zealand car factories were running It was mind-blowing.” more competitive than anywhere moving and something had to at capacity, striving to meet the In the late 1970s, he returned and the need to compete with used be done it had to be done now. If demand for new cars in a market that to General Motors NZ and a very imports helped keep new car prices the assembly line stopped all hell topped 100,000 registrations. different car market. down. “Whether prices would be broke loose. It instilled in people a The Kiwi car industry was largely “Things had started to slow higher if imports weren’t here, I don’t great sense of urgency. You couldn’t Wellington-based, building British, down. The government enacted know, but spec levels are higher procrastinate.” European and Australian cars; legislation requiring buyers to pay because of what comes out of Japan.” He says the experience of running Japanese makes were just starting Merrie says used and new car factories played a major role in Peter Merrie their climb to market dominance. Japanese cars have profoundly the NZ car industry’s high standard General Motors built Holdens affected the way New Zealanders of professionalism. and Vauxhalls at Trentham, Ford regard car-buying. “To get cars out of a factory you produced Escorts, Cortinas and “People experiencing a Japanese have to have a good operation. To Falcons at Seaview, Todd Motors used car come to expect a higher achieve that you can’t have anything assembled Hillmans and Chryslers level of reliability. A person who haphazard or leave anything to and the NZ Motor Corporation has only ever owned a Toyota or chance. You had to be on the case to put together Austins and Morrises Nissan has expectations of a used get them out. That’s part of why the at Petone. car that are higher than someone’s industry is so professional now.” It was into that bustling world who has only ever owned a car from When the factories closed, fresh from school that Peter Merrie somewhere other than Japan. That’s car companies had to transform stepped, as an engineering cadet at full price. There was no credit for new had a huge influence on our market.” themselves. “The emphasis went General Motors. cars, but commercial vehicles could The reduction in tariffs on more on marketing cars. Developing “When I started at GM they be bought on HP, so we used to take imported goods in the 1990s brands was much more important couldn’t build enough cars to the back seats out of (Vauxhall) Viva sounded the local assembly than in years gone by. It was simpler satisfy the market. They had 2000 station wagons and sell them under industry’s death-knell. yet more complicated. The simple employees, built cars at Trentham credit terms. People were buying “It was the end for thousands part was getting the cars here for and trucks and vans at Petone, Holden Utes because you could of people who worked in assembly sale. The more complicated part was made all their own exhaust systems, finance them.” plants,” says Merrie. “I thought that getting the cars ready for sale.” sparkplugs and oil filters.” In 1987, Japanese used imports was a real shame. People who built Merrie says the internet has Merrie retired from the motor arrived and the scene really began cars were highly-skilled. changed the way cars are sold. industry a few weeks ago as a senior to change. executive with Nissan after a 40-year “People were going to Japan, career during which the car trade buying used cars and shipping them changed utterly. back here as private imports. They Racing with Holden and Nissan The assembly factories have gone were getting a good car for a lot and assemblers become distributors less money. In 1989 the floodgates Motorsport has been in Peter GM NZ’s role in building the cars. of imported cars; Japanese brands opened (when wholesalers and Merrie’s blood from an early age, “I went to Australia, met have displaced the British and individual dealers began large-scale and during his career in the motor Peter Brock and helped set up European as the market’s big players, imports from Japan).” industry he played pivotal roles the programme,” he says. “From and Japanese used imports drove a By then Merrie was working for in major racing campaigns for a personal point of view it was huge shake-up. Nissan which had an assembly plant General Motors and Nissan. pretty cool.” But the young Peter Merrie could in Wiri, South Auckland. With GM he oversaw the GM built the cars at Trentham, have had no inkling of that when he “We, like most people in the new production in Trentham of a with Brock’s brother Phil on hand started work with GM at Trentham. car trade, saw (used imports) as a special batch of “homologation to watch over the project. All but “I worked in all parts of the threat.” special” Holden Commodore V8s one of the cars – built in a limited factory – drawing office, tool But Merrie concedes that “a lot to contest the Benson and Hedges run to qualify them as a production design, toolmaking, production of good cars came in. The imports long-distance touring car series. model under the B&H series’ rules – engineering.” had air-conditioning and electric The series grew out of the were white. The final car, destined After five years, he was posted windows, and local cars didn’t have annual Wills Six Hour race at to be a GM executive’s personal to Detroit and it was an eye-opener. that.” Pukekohe to include two further company car, was black. In Trentham, GM had been flat-out That fuelled customers’ demands rounds at Manfeild and at the Merrie wove motorsport assembling 10 cars an hour; in for similar spec on new cars. “The now-defunct Baypark circuit at involvement into his role at Detroit they were making 60. And spec level that local new-car Mount Maunganui. Nissan too. when the oil shock hit, things distributors achieved from suppliers The legendary Peter Brock came The Japanese brand had got even more hectic. “The Yanks was able to be increased.” up with the specification of the cars, long been involved in NZ decided they wanted small cars and Having to compete with used and Merrie landed a motorsport rallying, fielding an ex-works came up with the Chevy Vega which imports also influenced new-car enthusiast’s dream job of overseeing 240RS Group B car managed by

20 | www.autofile.co.nz cars, better visibility because you’re higher, they’re more adaptable and can go off-road if you want to. They tow well, and owners have the image of being an outdoors person.” Though he has no plans to return to the motor trade, Merrie will be keeping a close eye on it, especially with the advent of electric vehicles. “Right now they’re a little bit of a niche but it’ll be interesting to see what happens when plug-in electric cars arrive in the next year or so. It’ll be interesting to 1970 Holden Premier station wagon see how quickly people embrace them and how local governments “In the 1970s we shovelled aware of things and once they’ve “Take the double cab ute. A lot and companies respond in terms cars out the door. There was more done the research it creates a of people are buying them because of infrastructure, whether city demand than supply and it was easy demand. They want cars to have they allow them to mix business councils put plug-in spaces in to sell, but it’s not like that any more. DVD players, satellite navigation and pleasure. Top-line Double Cabs carparks or developers do at malls. You have to know your product and and that’s pushed the demand for now have six airbags, ESP, Bluetooth “Early adopters will go for them customers are much more savvy. those things here. It’s made it more connectivity – things that were only but for the average man in the “The internet has played a major difficult for salespeople. found on luxury cars two or three street it will probably take a little part in that. People now often know “Selling cars has become a much years ago.” more, especially now we’re getting as much as the salesman when they more professional job. Dealerships He sees SUVs as replacements really fuel-efficient petrol cars. It’ll walk into a dealership. are open six days, sometimes seven, for the traditional big station probably need petrol price rises to “It creates problems where but typically six days a week, and it’s wagon. “(Big wagons) once were a spur them on. people go on to the internet and go high-pressure to sell the numbers substantial part of the market but “It’s the same with diesels, hybrids to a US or British new-car site and because if you don’t get the numbers now you’re hard-pressed to find or plug-in electric cars. Whatever drink expect New Zealand dealers to have you don’t succeed.” them. The SUV does a lot of the you want, it’s there. It’ll be interesting vehicles with those specifications. He says Kiwis’ changing lifestyles things wagons did. over the next five years to see how “It has opened us up to the have influenced the types of cars “People buy them because some of that stuff comes through and whole world. People become they buy. they have more space than most how well-accepted it is.”

executive Bob Penman and driven by the colourful Reg Cook. Merrie would later be closely involved with Cook’s rallying comeback in the new millennium with front-wheel drive Nissans. Cook had also raced a string of Nissans, including a front- drive Cherry whose Baypark lap Peter Merrie played a key role in Reg Cook’s record was never beaten and Cook flying the factory-backed Nissan 240RS successful campaign in the radical Kiwi 2 Nissan Micra a Sunny and Bluebird in the Shellsport 2.0-litre class. Car team with Peter van Breugel performance Nissan road cars highly-modified two-door Micra Nissan was a key sponsor with and David (Bart) Simpson with in collaboration with US-based with which Cook won the Kiwi 2 Mobil of the Wellington street a Triple S Sentra and a Bluebird,” Kiwi racer Steve Millen. “We did title this year. Peter was part of the race and the Nissan-Mobil series, says Merrie. “It was an exciting the Millen Maxima and we had a crew which prepared and ran the and ran a one-marque series for time. Manufacturers were Millen Primera at one stage.” More cars and doubled as a co-driver for Sentra GTs in which multiple NZ involved in motorsport. Toyota recently he was involved with the Cook in tarmac Targa events. V8s champion John McIntyre cut ran Coronas, Ford ran Telstars, development of enhancement Though Cook has wrapped up his racing teeth and Scott Dixon BMW ran 320i Coupes packages for Maximas. the rally programme, he has two competed while still a schoolboy. “The 2.0-litre class had huge He’s kept a hand-on motorsport major projects in the pipeline for And it was in the thick of potential and opened the sport to involvement helping Reg Cook next season and 2011 and Peter will the action when New Zealand a lot more manufacturers, like Alfa with his rallying campaign in the be involved with both, though he adopted a British Touring Car Romeo and Mazda (with an Astina).” two-wheel drive Kiwi 2 class in refuses to say what they are. Championship-style series. Peter was also involved with the NZ Rally Championship, first “Just keep watching,” he says “We had a 2.0-litre Touring developing special edition high- with a Pulsar GTi and then with a with a grin.

www.autofile.co.nz | 21 Gull launches first retail-market biodiesel

Gull has launched its Gull Diesel not better, than the mineral fuels to public acceptance of biodiesel. them to use a wider variety Max, a B5 blended biodiesel, the available. “Biodiesel is used around the world, of feedstocks to produce the first biodiesel offered to the public. Environmentally better, you’re and it’s certainly no new boy to the biodiesel. Low quality feedstocks Available at three service stations in getting higher octane with market place, but it is in New Zealand are characterised by the presence Auckland, B5 is 5 percent biodiesel GullForce 10, and the biodiesel as a retail sale.” of high amounts of free fatty acids blended with mineral diesel, by law you’re getting greatly improved Environ Fuels are one of a (FFAs), which require pre-treatment the maximum allowed for retail sale. lubricity, so the fuel is a lot number of biodiesel producers in to remove these before the New Zealand does not allow smoother through your fuel system.” New Zealand who benefit from transestrification process can begin. imports of biofuel into the country, Bodger says tests show that the Biodiesel Grant Scheme, which Environ Fuels currently sources and Gull New Zealand’s general there are no worries about flow- gives grants to local producers. cooking oil from industrial uses, manager Dave Bodger says that problems with the biodiesel at low They supply Biodiesel to a number which is replaced more frequently it’s taken them five years to get to temperature - “It gets very cold of commercial organisations, who and has lower amounts of FFAs. the quality that they want in New in Europe where many trucks are typically run fleets on B20. “We Cooking oil from Fish ‘n Chip shops Zealand. The biodiesel is supplied driven on B20.” started in 2006, and we’ve been and restaurant tends to be changed by Environ Fuels, who produce it Kuiti-based Environ Fuels supply making around 300,000 litres a year. less regularly, and the FFA content from cooking oil. Gull with B100, which Gull then Instead of building a really big plant, climbs. When the new capacity is “We’ve conducted quite a lot of blends with mineral diesel to create and then worrying about trying added, efficiencies will allow a pre- cold-flow property tests ourselves, the B5. Environ Fuels are the largest to sell its capacity, we developed treatment programme to treat the both in the lab and practical, and private commercial producer of a smaller plant and focussed on oils with high FFA levels. we’re very happy with Environ biodiesel in the country; state- making a quality product. Biodiesel Holden says they’re also weighing Fuels. What it gets down to is that owned Biodiesel New Zealand, based is quite easy to make, but it’s really up the option of using of Canola or they’ve got a very good feedstock in Christchurch, is the largest. hard to make the good stuff. We’ve Rapeseed as rotational crop, as do supply with used cooking oil, and Environ Fuels founding director developed the product to the point Biodiesel New Zealand, with a final we believe that’s going to work Warren Holden says that having where it can sell itself, and that focus decision yet to be reached. for us.” Gull use their product in their retail on quality was always paramount.” Holden would like to see the All Gull sites now have at least sales will give the company more Environ Fuels adding to that regulations changed to allow the one biofuel, with three having only of a profile in the market place. capacity, and are soon to complete public to purchase B10 or B20, but in biofuels available. Bodger says that He’s also pleased to see a biodiesel a new plant, with overall production the meantime most of their business they’re a great proposition. enter the retail market, and believes reaching 1.6 million litres a year. is with commercial clients who run “These fuels are as good, if Gull’s selling of the product will lead Larger capacity will also allow their vehicles on B20. Turbo the new green?

Honeywell, which produces compromise on performance and the regulatory boost the automotive turbochargers, has at a significant cost discount to targets like CAFE engines of released a report saying it expects hybrid and electric vehicles. in the U.S.,” said several of global turbo segment to double in In the United States turbocharged Alex Ismail, the world’s most the next five years, from 17 million vehicles are expected to grow from President fuel efficient new turbo vehicles in 2009 to 35 the nearly one million vehicles sold and CEO of vehicles in each million in 2015. today (five percent of total) to more Honeywell region including The findings, based on a variety than four million (over 20 percent) Transportation the recently sources including analysis from in five years. In China, turbocharging System. “We have launched 2011 J.D. Power & Associates, says that will grow from approximately 10 witnessed a sharp Chevrolet Cruze in the tightening fuel economy and percent today to 20 percent by 2015. increase in demand for U.S., the 2010 Volkswagen emissions standards worldwide, The company also expects the global our turbos on both passenger and Polo in Europe, the world’s most coupled with consumer demand turbocharged commercial vehicle commercial vehicles in the U.S. fuel efficient five-seat car the BMW for affordable, more fuel efficient engine segment to grow rapidly and China, and expect to grow in X-6 ActiveHybrid, a turbo gasoline- vehicles, has automakers looking from 3.5 million engines in 2009 to new sectors like small gas (petrol) electric hybrid engine, and two increasingly to turbochargers. six million engines in 2015. engines in Europe, where turbo new gasoline engine developments Turbocharging can deliver up “Despite the buzz around hybrid penetration is already very strong.” in China for GAC-Fiat and JAC. In to 20 percent better fuel economy and electric vehicles, it is clear The growth in all regions is addition, Ford announced plans last on gas vehicles, and up to 40 that automakers will be looking primarily driven by increased year to offer a turbo-based EcoBoost percent better fuel economy primarily at turbocharged engines adoption of smaller, turbocharged engine option in 90 percent of its on diesel vehicles, with no to help “green” their fleets and meet gasoline engines. Honeywell will global nameplates by 2013.

22 | www.autofile.co.nz By Louise Ngaei Sales and Marketing Manager, AutoBase Ltd Pimp that listing! [email protected]

Our dealers often ask us, ”How was inspecting this vehicle Putting your website on do I make the most of my online on your yard? This might your business cards and advertising?” The key is to have a sound obvious, but you signage is great, but simple plan and work your online would be amazed how having a hyperlink to it provider as hard as you can. Henry many scant, lack luster online when someone Ford said about his Model T “Any listings we see. is already sitting at their customer can have a car painted computer is far better any colour that he wants. So long as ne of our dealers rang and there is much more it is black.” Luckily, that’s no longer Ome recently concerned that he chance of them clicking into the case. Online classified websites wasn’t getting many enquiries your website. Having a website but contain thousands of vehicle listings on his vehicles. When I had not advertising it properly is like of every price, model, make and type. a look at his listings the having an advertisement for So how do you get buyers to locate answer was clear – the your yard on the 100th storey and look at your vehicles? descriptions listed were of a building – yes it’s out very brief with no features, there, but who’s looking at it? n online classified provider like and nowhere near enough ATrade Me Motors gets almost information in the description. lso, think beyond just your two million Unique Browsers a Most of the comments contained Aproduct. Having your vehicles month (that’s individuals, who have just one word – “petrol”! There was online is one thing but having your visited the site one or more times only one poor image brand online is another. Sell in a month, who are counted once). on some vehicles and your proposition as well as You want to funnel as many of these some had none at all. the product - what does your potential buyers as you can toward The pictures were taken dealership offer that the next your vehicles, so start by placing as on a cloudy day and on a may not? Include information many ‘arrows’ as possible pointing funny angle that either cut the back about special services, warranties, to your vehicles. The more vehicle off the vehicle or a corner. finance, deliveries etc. Work your and brand information you have We had a chat and the dealer listing space to its absolute capacity displayed, the more likely a buyer’s went back and updated all to sell not only your vehicle but search enquiry will pick up on your of his listings, adding more your brand and proposition. vehicles. One way to do this is to information, features and utilise the ‘comments area’ to the photos plus benefits of buying inally, work to a plan - but max (i.e. the area where you enter from his dealership. Within Fmake sure you understand free flow text to describe the vehicle). a week he had seen a good it and you can follow it through. On most automotive classified increase in his enquiries and What is your budget? Where sites vehicles can be searched vehicle views. We continued will you get the most bang for for by categories such as region, to monitor his vehicle views your buck? Identify your target body style, make, model, price so that he could see which audience. Where can you reach and year, enabling buyers to filter vehicles were getting less views, them and how? Online advertising down to exactly what they want. and figure out the reason why. In has rapidly become the foundation So be specific and include as many most cases, the reason was a lack to automotive dealers’ marketing descriptive keywords within your of information or poor photos. The plans. New Zealand’s online vehicle descriptions as you can such solution was basic, but it was the advertising spend for 2009 was as colour, CD player, AA Appraised, difference between working the $213 Million - a 10% growth since turbo or remote locking to further vehicles and not. 2008. So seek out business partners refine a browser’s search. who will put your brand and o further attract and drive buyers products in front of a large, relevant lso think about how you would Tto your vehicles, use any upgrade audience. In my next article we’ll Aapproach a customer and sell features that your online provider drill down into how to create and that vehicle if you were on your offers - feature your listings so that work a simple, targeted sales plan. yard. Parlay that same approach and they appear at the top of searches, In the meantime if you are using an information into your online listings add a hyperlink to your website, online classified website, work that - tell the story. What is special about showcase your vehicles in an online site to your benefit to promote your this vehicle? What condition is it in? showroom or store. If you have vehicles and your brand and you What would you say if someone a company website, promote it. should start to see results.

www.autofile.co.nz | 23