9 November 2010 The voice of the auto industry Synthetic gases – to ETS or not? Ministry for the Indeed, MfE have announced However the work on that mandatory reporting will Environment (MfE) recently that they are reviewing the synthetic gasses is likely to be come into effect, only to be held a workshop in Auckland, policy setting for synthetic bundled into the wider ETS scrapped months later. designed to inform dealers gasses as a part of the general review, which begins early next Dougal Morrison, Motor and distributors about their ETS review, to consider whether year and will be completed Trade Association’s Advocacy obligations as importers of alternate mechanisms should in December 2011, after the and Training Manager, is synthetics gasses. be used. This could involve a General Election. hopeful that the synthetic gas Attendance was sparse, one-off levy at the border at That would mean any policy will be reviewed prior perhaps an indication of the the time of import, which the changes to the synthetic gas to and outside of the full ETS industry’s apathy. Many dealers motor vehicle industry had policy won’t come into effect review. and importers who didn’t originally lobbied for. until 2012, after the mandatory However he recognises that attend later expressed cynicism MfE officials says work is reporting period begins. the scenario of mandatory about learning about a new starting on synthetic gasses Officials aren’t giving any reporting to begin in 2012 reporting system, questioning now, which will include firm indication of what can be only to be discontinued is whether it will actually be consulting with the motor expected from the review, but a possibility, calling that implemented. vehicle industry. there remains a good chance outcome illogical. continued on page 4 EECA focuses on used import Regional dealers’ Fuel Economy Labelling focus p22 Energy Efficiency Terry Collins, manager place for producing the reports Conservation Authority (EECA) products, says the first three and producing the labels, as have completed an October survey surveys focussed on new well as the expectation of the of dealers compliance with Vehicle vehicle dealers, knowing motor companies themselves Fuel Economy Labelling (VFEL) that there would be higher that dealers will comply with requirements. compliance from new car all the relevant requirements. It’s the fourth such survey and franchise dealers, in part Plus we also knew that they since the scheme was introduced, because of the strong support had the information for all and focus this time was on they get from their franchisors. their vehicles.” dealers selling used imports. “Franchises have systems in During the last 6 months Far North continued on page 8

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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 HOEGH XIAMEN V1 Sakaisenboku 28 OctORCHID - Nagoya ACE 29 Oct V1 - Yokohama 31 Oct - Auckland 24 Nov - TaurangaSakaisenboku 28 Nov - Napier 26 Mar 28 YokohamaNov - Wellington 30 Mar 26 Nov - Lyttelton 27 Nov Auckland 18 Apr Tauranga 22 Apr Napier 22 Apr Wellington 21 Apr Lyttelton 22 Apr

MADAME BUTTERFLY V1 Sakaisenboku 29 MarSPRING Nagoya SKY 30 Mar V2 Yokohama 31 Mar Sakaisenboku 13 Nov - KobeAuckland 14 Nov - Nagoya21 Apr 15 Nov - Kawasaki 16 Nov - Auckland 1 Dec - Tauranga 5 Dec - Napier 5 Dec - Wellington 3 Dec - Lyttelton 4 Dec 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 SINGA ACE V16 Sakaisenboku 26 Nov - KobeTOKYO 26 Nov -CAR Nagoya V1 28 Nov - Yokohama 29 Nov - Auckland 15 DecSakaisenboku - Tauranga 19 26 Dec Apr - Napier Nagoya 19 27Dec Apr - Wellington Yokohama 17 30 Dec Apr - Lyttelton 18 Dec Auckland 13 May Tauranga 4 May Napier 16 May Wellington 16 May Lyttelton 16 May

ISOLDE V3 SakaisenbokuMADAME 28 Apr Nagoya BUTTERFLY 29 Apr Kawasaki V4 30 Apr Sakaisenboku 26 NovAuckland - Nagoya 2127 MayNov - Yokohama 28 Nov - Auckland 24 Dec - Tauranga 26 Dec - Napier 28 Dec - Wellington 24 Dec - Lyttelton 25 Dec 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 Bad driving - it’s in our genes There’s a few motoring writers out there who love to have a good yarn about what terrible drivers we New Zealanders are. I can’t say that I agree – not that I want to defend our driving, but I can’t see what would make us any worse at it than someone anywhere else in the world. If you’re on the look-out for bad drivers, you’ll have them by the truck – or car – load. It is undeniable that some out there are a little more challenged by driving than others, to put it politely. But being a good driver doesn’t ensure you won’t ever make some silly mistake. The fact is, human beings weren’t designed for driving motor vehicles. If we had been, we’d be able to do two things at once. Now when I say we aren’t designed for driving motor vehicles, I don’t mean we can’t a second’s delay before the foot Increasingly, safety features the car will do most of the do it very well, since we can, hits the brake. such as stability control, ABS, driving, then they’ll probably be and racing drivers are proof of Momentary lapses of impact sensors and lane- asleep before the vehicle gets that. But good driving requires concentration, statistically change warnings, to name a to the end of the driveway. Fully absolute concentration. If speaking, cause crashes. You few, are being designed to act automated vehicles are not just you take your average road personally might never have had a in situations where our driving around the corner; however it’s trip, which may or may not crash, but you’re lying to yourself skills aren’t up to scratch. only a matter of time before involve children, arguments, if you say there’s never been a While they’re given acronyms technologies converge, and cars air-conditioning, changing moment could you could have, had and the safety benefits lauded, are built so they aren’t easily the stereo, and a thousand the circumstances been different. a trend towards minimising able to crash, even if drivers are advertising billboards, then Obviously safe driving chance for the driver being careless enough to let them. chances are there’ll be a practices can decrease heavily allowed to crash is clear. moment or two where you aren’t the chance of accidents. There’s no half way on this, Stian Overdahl concentrating, and there may be However so can technology. since if you tell a person that Editor

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www.autofile.co.nz | 3 news continued from page 1 Synthetic gases Associate Transport – to ETS or not? ‘We’d like to see a decision that period. “We see that as a Minister dismisses earlier, and in fact I think there real risk for importers, there will be a decision earlier one are potentially some large way or the other.” costs for importers if they Morrison hopes that a don’t purchase units when exhaust emission decision will be made explicitly the vehicles come across the on synthetic gasses, with the border.” arguments question being whether the MfE officials say that ETS is the best way to regulate at this stage mandatory synthetic gasses. reporting is unavoidable. “Any In a speech delivered to Motor Morrison says that one of recommendations from this Trade Association at their their main criticisms of the synthetic gases policy work will annual conference in Nelson, ETS is the twelve month gap be fed back into the NZ ETS the Associate Minster for for a vehicle being bought in Review which will report back Transport Nathan Guy, pictured at the beginning of the year, by the end of 2011. right, dismissed arguments in and the time when the units “We can’t prejudge the favour of deferring the exhaust are surrendered, or when the results of the Review. At this emission rule. vehicle is in effect paid for. stage participants should In his speech he said, “I He believes that importers prepare for synthetic gases know that some argue the could face real problems if the mandatory reporting starting in requirement for used vehicles to price of units fluctuate over January 2012.” meet the Japan 00/02 standard Some questioned whether from January 2009 caused a dip Minister Guy’s speech, was in imports. While that might written prior the IMVIA’s be true, it’s interesting to note submission and subsequently that new vehicle imports also not updated. Speeches are often We don’t know how dropped by almost exactly the written by officials weeks in same amount at the same time. advance. It’s clear that other factors, such The spokesperson for lucky we are, mate as the global economic crisis, Minister Hon Joyce refused also had a major impact on to confirm whether this was Our neighbours across the a very frustrating time carrying import levels.” the case, saying, “Minister ditch might get a bit cocky out some of the most mundane The Minister went on to Guy’s speech outlines the about their warm climate and tasks we take for granted when discuss the issue of deferring government’s position on the their cricket team but when running and administering a the rule. “I appreciate that many exhaust emissions rule”, going it comes to the ease of doing business. in the industry would like to on to say “that there are a business we’ve got it all over Vehicle information is an see a delay to the standard, number of stakeholders and a them. And the latest survey example we are involved in, and and last year the Government range of views on this issue.” from the World Bank backs the total lack of information considered just that, looking at IMVIA chief executive David this up. NZ rates as the 3rd vehicle dealers, finance and the arguments for and against. Vinsen said that Minister Guy easiest place in the world to do insurance companies experience However, it is important we invoking the January 2009 business, with the Australians makes you wonder how a retain the current balance implementation was not the coming in a distant 10th. vehicle is ever traded, financed of responsibility for harmful best example to have chosen, Sometimes it seems that or insured. It certainly explains emissions between new and since the 00/02 standard was Australia is actually 8 small why theft, fraud and rebirthing used vehicle importers and originally planned to come into countries doing their own thing, of vehicles is an industry in its provide certainty to the industry effect one year earlier. compounded by what I regularly own right. as a whole.” Vinsen said that discussions encounter; a total misuse of So don’t worry about the Earlier in the week a with officials at the time when ‘privacy’ as an excuse to avoid cricket team, or the temperature spokesperson for Transport the exhaust emissions rule any level of customer service or in the middle of June, when it Minister Stephen Joyce had was being drafted succeeded common sense! That makes for comes to doing business with confirmed he had received the in convincing officials that your suppliers and customers, Imported Motor Vehicle Industry delaying the phase by one year we’re on the podium while Association’s submission to defer would reduce disruption of the the Aussies are taking an the rule, and had sought advice supply by allowing a year for early shower. from officials, expected to be the availability of compliant received in the coming weeks. vehicles to increase.

4 | www.autofile.co.nz news Toyota examining all componentry

Recalls are again a feature of claims. Carroll says that studies affected, but are currently checking much greater focus on recalls. the motor industry, with Toyota conducted in the U.S. by the with NZTA. “Motor companies have always and Nissan announcing recalls. national highway safety authority Nissan New Zealand meanwhile done recalls, that’s part of the Honda also announced a recall, in U.S., and NASA, have found no is recalling 1,592 New Zealand- service they provide to their for the same problem as Toyota, evidence of any electronic fault. new vehicles for a potential customers. I think there is more though Honda vehicles in New One confirmed problem electric fault. Managing director publicity attached to them now, Zealand were not affected. however was the issue of the John Manley says the recall is normally for service recalls we BMW also announced a recall sticky accelerator pedal which, precautionary, and is a service have just sent a letter out to for steering and braking issues, after being depressed, did not recall, not a safety recall. customers advising them to make which affected six individual return to its original position as The fault is in the power supply an appointment to bring the car in vehicles in New Zealand, the quickly as it should have. This for the engine management and to the dealer. Globally now there 2008 X5. would occur during extremely may cause rough idling, hesitant is a much greater focus on these, Toyota’s recall comes at the cold conditions when the foot starts or in extreme cases, stalling. and there is no issue with that.” end of an already busy year for heater was blowing on the pedal, Manley says that to the best of their Manley says owners will be the company, with the latest causing the material in the pedal knowledge there are no known contacted by letter in the coming recall due to the potential for a to expand slightly. The fault was instances of the fault in New Zealand. weeks and will be requested to seal within the brake fluid master related to the outside suppliers The affected model are Micra bring the vehicle in for servicing. cylinder to perish over time, if CTS, whose pedals were used in (890 vehicles), Tiida (588 vehicles), Any used imports affected will non-Toyota brake fluids are used. the U.S. & European markets. Wingroad (62 vehicles) and Navarra also be serviced, but since it is a The seals are manufactured by The European-sourced Avensis (52 vehicles), built between January service recall and not a safety recall a componentry company also wagon was the only Toyota 2004 and June 2006. NZTA will not be notifying vehicle used by Honda, who are recalling vehicle affected in New Zealand. Manley says that since the owners, rather people will be vehicles for the same issue. Carroll says that while the Toyota recall there has been a required to check NZTA’s website. Paul Carroll, General Manager issue was minor, and didn’t affect of Vehicle Aftercare for Toyota ordinary breaking, investigations New Zealand says that Toyota of the problem bought to light Motor Corporation is going the issue of outside componentry. through a massive process of When asked whether the testing all components that have amounts of recalls are out of been used in Toyota vehicles. the ordinary Carroll says that he It was during testing of these believes they are. “As a result of outside supplier parts that the the emphasis put on vehicles seal fault was discovered. in the U.S., particularly on TMC, “A huge amount of work we have taken a much stronger is going into making sure stance with our suppliers.” suppliers are manufacturing to Taking the example of the the specifications stipulated by sticky accelerator pedal, Carroll Toyota. All supplier components says that while it might not have are being subjected to extensive been manufactured to Toyota’s additional testing. We have global expectations, the quality checks and regional quality forums performed by Toyota should have and we’re looking at internal picked up that under certain processes as well as testing. All climatic conditions the pedal of this goes back into the design would not operate correctly. Trans Future 6 Voyage 41 concepts for future models.” The new more stringent testing Osaka 25 Oct, Nagoya 26 Oct, kawasaki 30 Oct, Carroll say the initiative, should ensure there’s no repeat, Auckland 18 Nov, Lyttelton 20 Nov, Wellington 21 Nov, Nelson 22 Nov announced by TMC President says Carroll, but also determine Akio Toyoda in March this year, that all componentry in Toyota Trans Future 7 Voyage 41 came as a result of the problems vehicles is of expected quality. Osaka 8 Nov, Nagoya 9 Nov, kawasaki 13 Nov, in America, when it was realised The current Toyota recall Auckland 1 Dec, Lyttelton 3 Dec, Wellington 4 Dec, Nelson 5 Dec that outsider manufacturers of affects 1,872 New Zealand-new componentry weren’t necessarily vehicles manufactured between Trans Future 5 Voyage 45 producing products to the 2003-06. They are the Toyota Osaka 22 Nov, Nagoya 23 Nov, kawasaki 27 Nov, required standards. Highlander, and Lexus IS250, Auckland 16 Dec, Lyttelton 18 Dec, Wellington 19 Dec, Nelson 20 Dec A media frenzy was whipped GS300 and RX330. up in the States following the Carroll says that they’re not ‘unexplained acceleration’ aware of any used import vehicles

www.autofile.co.nz | 5 news First in, first out: Luxury sales beat total market

With its customer base of business owners and captains of industry sensitive to any shift in the economy, luxury car sales were among the first to slow down. After all, while a $300,000 sports car is good for turning a few heads, it remains a purely discretionary purchase. Conversely as the economy begins to recover luxury buyers are among the first to return. in February 2008. worldwide by 2015. segment up 17.1% on last year, While segmentation can be Fisher says that confidence Being market leaders has its while the total new market is up somewhat academic, some of the has returned to the market, rewards, with Audi AG investing 13.5% (figures YTD September top performing marques this year and believes that Audi is well- in the local dealer network. 2010). BMW meanwhile is up 35% are high worth brands, including positioned to take advantage of Between Audi AG, Audi NZ and on last year. Gilbert says that while Aston Martin and Ferrari, while the mood. “New Zealanders are the dealer network, $25 million the introduction of new models familiar names such as Porsche, fairly conservative and they don’t is being invested over the next helps sales, he chalks up their BMW and Audi are well ahead of want to be seen as too showy as three years. This will start with performance to a motivated dealer the total market increase of 13% they start improving. They’re quite the Giltrap Prestige terminal network, something that he says is new passenger vehicles. See pages socially conscious of that.” which will be finished in May evident in sales of the BMW 3 series 18-19 for the latest figures. Fisher also notes a trend in of next year, a project involving given its stage in its life cycle. Lee Small, general manager at luxury sales of many buyers an approximately $15 million Gilbert also believes that a Independent Prestige, distributor choosing vehicles with more investment by the Giltrap group. polarization between brands has of Aston Martin, Bentley and functionality than a two-door Paul Ricketts, Jaguar’s brand occurred during the financial crisis, Lamborghini, says that with ultra sports car, saying that while they’re manager, says they expect to with consumers now focussing luxury vehicles being purely a want still purchasing a luxury vehicle, it’s finish the year with similar figures on buying brands they can trust. rather than a need, it’s logical that likely to see use in various activities to 2009. Ricketts says that sales He says that this polarisation has such purchases are the first to drop such as fishing, skiing and taking in the luxury market are strongly resulted in a greater share of the off, alongside luxury yachts and the kids to school. “I think that’s determined by model cycles. “The NZ premium market for the luxury other accoutrements of high living. certainly been an advantage for us.” latest and greatest is what sells, German marques. But Small says the market has Asked about stock constraints, and the higher up you go, the more Gilbert isn’t picking 2011 as picked up, and that the year has Fisher believes that there are true that is. The people that are a boom year in the car market. been a positive one. “We’ve sold supply issues across the board, purchasing our cars want to have “Industry predictions are for a some very high-end cars this year, saying Audi is no different. “A lot the latest car and have one up on fairly flat Total market in 2011- and some pretty special cars in of suppliers are struggling to keep the man next door. circa 60-61,000 units again.” He among that lot.” Aston Martin had up with supply of new technology. “We had a bumper period is however optimistic for BMW’s strong sales following a lacklustre They’re ramping up as fast as they following the XK launch in 2006. growth, saying that new models, 2009, helped along by its popular can, but the growth is probably This continued in 2007 and we the polarisation in the public’s eye new Rapide and the exchange rate. outstripping what they planned. were dominating that particular of brands, and the dealer network Small is also happy with Bentley It’s very hard to gear up, especially segment, then the Maserati Gran are all likely to contribute. sales this year, despite the current with the massive success in China Turismo came along and took the Porsche have had a strong GT being at the end of it’s life cycle. which is really pushing supply.” lead for just over a year. Everyone year, with sales up to the end of He says that the new GT being Fisher says that while there has their time to shine and the September surpassing the full year introduced next year will be another are challenges, they have a good segment is very hard.” figures for 2009. General manager beautiful car and also picks 2011 relationship with the factory and are Ricketts says they’ve had a great Greg Clarke says that they have to be a good year for Lamborghini. looked after well. This comes in part response to the XJ released this had strong interest, particularly “While traditionally it has priced because Audi have led total sales year, but supply constraints are a in the new Cayenne SUV, whose above Ferrari, new prices will make in the luxury market three years in factor, and sales would likely be popularity is part of a wider global it much more competitive.” a row in New Zealand, a feat they higher if they had the product. trend, one which is amplified by General manager for Audi New look set to repeat this year. Fisher Mark Gilbert, managing director local conditions. “The luxury SUV Zealand Dane Fisher says that the says this fact is not lost on Audi AG, of BMW Group New Zealand, says segment in particular is a segment luxury market felt the pain very who have the stated goal of being that BMW’s segmentation of the that is doing very well worldwide, early, noticing a slow down in sales the leading seller of luxury vehicles sales data shows the premium and in particular in New Zealand. It

6 | www.autofile.co.nz news First in, first out: Luxury sales beat total market

with waiting lists for fresh people, first-time buyers who new, hot product. haven’t bought luxury before.” Buyers are more Cockram says there is good confident in interest and good sales in the the market, $100k to $200k bracket, but says and Giltrap too the $250k to $300k bracket is still are sharing in a little slow, although showing the confidence, signs of improving. investing in the new Audi Looking to next year he believes dealership. that the market still has some way Angus Cockram, general to go, as 2010 was patchy at times. manager of Euromarque in “I’d say that the market has got suits our lifestyle here, and opposed up reasonably well for us, as have Christchurch, stockists of Maserati, another 20-25% to get back to to some central European countries our core models, the C class and M Alfa Romeo, Fiat, and Citroën, says where it needs to be. At the depths we’ve got space to park the cars, class [SUV]. These have been very that once the downturn began it was probably down 40%, so we’re and we don’t have open road speed strong for us again this year.” the luxury market still had some getting there. This year there have limits [as in Europe where] people Duggan says next year is a momentum based on orders. “The been some highs and lows, while a are cruising along at 200k/h.” bigger year on the new model front luxury market keeps going a little good market has more consistency. Clarke’s also pleased with sales for Mercedes. “A few of the new longer because a lot of it is pre- I think the car industry, unlike the of the Panamera, introduced last models on the horizon are relatively sale, and you still get your recidivist building industry which went into year, with fifteen sold through to niche, so they’re not huge volume buyers. What has been missing the recession later, is going to the end of October. new models which we’re launching but is starting to come back, is recover earlier.” The 911 is a perennial strong next year, but next year is certainly performer for Porsche, and this year a busier year than this year was. It is no exception, with approximately tends to be that every second year is 30% market share for the segment a bigger year in launch terms.” with 34 on the road. Lexus are another luxury Boxster and Cayman are brand that haven’t shared the registering lower figures than last market’s growth, although they’re year in the sports car segment, and approximately 3% up on last year. Clarke says that while he’s happy General manager Steve Prangnell WE TRANSPORT p: 0800 4 JEFFS with the eight Boxsters registered says that Lexus are currently mid- • MOTOR VEHICLES e: vehicles: [email protected] year to date, that market segment cycle on virtually all their models, pleasure craft: [email protected] w: www.jeffs.co.nz is still weak, and much smaller than and close to the end of cycle on • FARM TRACTORS in 2004-5. He believes that with the the IS range . However he says the • MACHINERY economy so tight purchasers are newly refreshed RX [SUV] range is • AGRICULTURAL EQUIPMENT looking for vehicles with greater going well, and Lexus are second in functionality. “While the Boxster, the Luxury SUV segment. • CONSTRUCTION EQUIPMENT Cayman and 911 sportscars are Prangnell doesn’t accept claims • PLEASURE CRAFT very much for the purist, the that European brands are stronger, • CONTAINERS Cayenne and the Panamera appeal saying that any difference is likely to a wider segment of the market.” to be a result of model cycles and Mercedes-Benz haven’t seen a exchange rates. lift in the market, and are year-to- Giltrap Prestige general OTHER SERVICES date down on last year. General manager Michael Giltrap says the • VEHICLE STORAGE manager Coby Duggan says it’s market is more buoyant now than • VEHICLE DISTRIBUTION been a reasonable year across the he would ever have thought it MANAGEMENT range for them, and a quiet year would be a year ago, having seen • HANDLING OF RARE on the new model launch front. a steady improvement since late AND RACE CARS “The best way to describe this year last year, with some stabilisation • FILMING PROJECTS in numbers terms is inconsistent, in recent months. • ENCLOSED TRANSPORTERS we’ve had some of the best months Giltrap says that while the • M.A.F & CUSTOMS FACILITIES of the year backed on to some of growth is coming off a low base, • SECURITY & CONFIDENTIALITY the tougher months of the year. But they’ve got good orders at many the top end of the range has held of their luxury car dealerships,

www.autofile.co.nz | 7 news continued from page 1 EECA focuses on used import dealers’ Fuel Economy Labelling

EECA has been working on through ignorance or inertia.” back dating fuel consumption Collins says October for Japanese used vehicles survey focussed on ensuring made between 2000 to 2006, in compliance through one on Results from partnership with IMVIA. one coaching to help dealers Comments IMVIA chief access Fuelsaver and download the EECA VFEL executive David Vinsen: “IMVIA’s labels. EECA is looking at position is that, although spending around one week in October survey we are not enthusiastic eight working with used vehicle supporters of the fuel labeling traders and helping to ensure 29 franchise dealers and 67 traders (if reluctantly) now regulations, we have actively VFEL compliance. used traders were visited. display labels as required. co-operated and consulted Collins concedes there is More than half of these While EECA is happy to with EECA to ensure the some resistence to the labelling, visits involved a visiting time assist and coach compliance, smoothest possible and least especially among used dealers. of 1 to 2 hours. EECA operate a responsive inconvenient implementation “They’re a pretty independent 17 of the 29 franchise compliance policy and will of the regulations and to lot some of these dealers, and dealers that were visited had elevate a response based minimise the possibility of they’ve got a strong view on 100% of vehicles correctly on the trader. EECA’s first members and the trade being the merits of the labels. Some labelled when first visited. focus is to get compliance in breach of the regulations understand both the obligation 10 of the 67 used traders as a partnership with the and the strength of the labels, that were visited had 100% industry and industry others don’t.” of vehicles correctly labelled organisations. However, if EECA Vehicle But Collins says while last when first visited. this is not successful EECA Fuel Economy year many dealers surveyed can use letters of warning said they thought the labelling Many of the traders were and it necessary instigates Labelling Survey requirement a waste of time, able to display VFEL’s after legal action to attain for consumers efficiency is the EECA coaching. Those that compliance. Fines of up to - October 2011 third most important factor used an automated SIN/VFEL $5,000 an offence can be in purchasing a vehicle, after label process automatically imposed by the courts. EECA is responsible for reliability and price. obtained VFEL’s and had monitoring and compliance He says that the benefits of higher compliance. Labels must be displayed of the VFEL scheme. The fuel labelling become apparent outwards so they can be scheme has a target of saving as petrol inches towards $2, and Those that achieved 100% easily seen from walking 6.2 million litres of fuel each believes dealers should view the of vehicles labelled were around the vehicle. year as well as reducing Co2 efficiency labelling as a selling using the VFEL as a positive emissions. tool, rather than a compliance selling tool. Some of the common VFEL’s can be easily burden. “By all means talk to Most traders were very non-compliance is: searched by model code or customers about price, and happy to have one-on-one  Hanging behind dark chassis number. EECA have about reliability, but also coaching and discussion. tinted windows and not actively worked with IMVIA, understand these labels and talk readable. MIA and MTA to make getting to your customers about them, Only one or two traders  Facing inwards or laying on labels easier. They have because it’s one of the things stood their ground and the seats. also developed an industry they’re interested in and it helps refused to display VFEL’s this  Not been put back up model code search system you close the deal.” was meet with discussion after test drive, or demo (by using the model code Prosecution for non- and a formal compliance vehicles on the vehicle ID plate) that compliance isn’t likely at this advice notice explained the  Not displaying a VFEL is accessed by an “Industry stage. “We’re treating the potential sanctions. EECA when on display at malls, Login” button on the market as different sectors, are pleased that these airports etc. fuelsaver website. and we focussed on Franchise EECA is working on dealers to start with, and the improving VFEL’s for used tactics we used were support Collins says that while “It’s not as if we come in like a European models and always and encouragement, and encouragement and persuasion traffic warden and give a ticket. If keen for industry feedback. they were effective. It took us is the preferred option, if a dealer they’ve got to that stage believe Further details and the a little bit of time to ensure refuses to comply prosecution is me they would have been well and automatic label generator can compliance, but the same an option. However he stresses truly invovled in a dialogue with be found at www.fuelsaver.co.nz thing applies, and this is only that any prosecutions will be for us about what the consequences our first survey.” recalcitrance and not ignorance. of non-complying were.”

8 | www.autofile.co.nz JEVIC announces new DCON machine for Osaka

Decontamination machine integral part of JEVIC MAFBNZ Equivalent Inspections

apan Export Vehicle Inspection Center Co. Ltd JEVIC’s New Zealand Manager Euan Philpot for hidden contaminants, an area in which JEVIC’s (JEVIC) has recently introduced a new version says the machines’ development and construction System excelled in mitigation. Jof its successful decontamination machine represent a significant investment by JEVIC, Philpot says MAF auditing of industry (DCON1). D-CON2 was commissioned into Osaka allowing the company to participate in MAF’s new equivalent systems is stringent and robust. in September 2010. biosecurity co-management regime. Operating only in MAF approved facilities, the Under the new Import Health Standard, “JEVIC has worked steadily with MAF over the system is audited by MAF inspectors examining a equivalent systems provided by industry could last decade to facilitate off-shore inspections of portion of the vehicles which have been through be considered. JEVIC began the process of used vehicles and is the only company to provide the biosecurity system. gaining equivalence with the introduction of the an equivalent system to the MAF Inspection for It is JEVIC’s strategic goal to have the JEVIC Biosecurity Inspection System, the DCON the used vehicle pathway.” decontamination machines operating at all four machines forming an integral part of the system. sites in Japan. In 2009 JEVIC gained equivalence approval for the System (the DCON and JEVIC ISO/IEC17020 NZTA Border accredited biosecurity inspectors). It has been Inspection successfully operating in the Yokohama facility At the start of 2010 and now DCON2 has been deployed into the JEVIC became the first Osaka facility. company able to provide the border inspection Built using the same underlying technology for vehicles subject to equivalent systems. JEVIC of the original DCON1 machine operating in currently is the only company able to provide this Yokohama, the new machine has already proven inspection on behalf of MAF and NZTA. itself to be effective, reliable and efficient. The Prior to the introduction of the DCON machine JEVIC has invested heavily in ensuring their staff machine is an automated vehicle “washing into the JEVIC Biosecurity Inspection System the are trained to the highest level for this inspection machine” designed to deliver a high-pressure cold machine was used for the decontamination of and the transition from MAF inspectors completing water wash to the exterior of vehicles in order to vehicles entering the MAF inspection. The DCON1 the inspection to JEVIC staff has been seamless. decontaminate the vehicle, remove extraneous machine was successfully operated for tens of Other services provided by JEVIC include debris and biosecurity contaminants. High tech thousands of vehicles destined for New Zealand. the AA branded ISO/IEC17020 accredited multi-variable angle small heads, stationary in Approval for the JEVIC Biosecurity Inspection odometer inspections and the JEVIC Pre-export position but providing targeted rotary water action System came after the system was subject to Appraisal (JPA), which provides a 120 check point are used to maximise the wash process. extensive trials including the use of video scope assessment of the vehicle before export.

 Odometer verification  Biosecurity inspections  Structural inspections SPECIALISTS IN PRE-ShIPMENT INSPECTIONS

Pre-Shipment Inspection Specialists www.autofile.co.nz | 9 Gilmour opens Dunedin Suzuki dealership

Suzuki has a new face in Emma says that in New day getting a new car franchise.” win the 2011 New Zealand Rally Dunedin, with Gilmour Motors Zealand “you’re never going to And the site has a motorsport Championship. The team is firmly opening a stand-alone dealership, make a living as a rally driver.” connection. It was one of the established in Hamilton and it was Gilmour Suzuki. She and Glenn were looking corners on the old Dunedin around- commonsense to leave it there Leading rally driver Emma for opportunities in Dunedin the-houses street race circuit. and commute from Dunedin. Gilmour and her partner and and when her father secured “It was easier to leave co-driver, Glenn Macneall, have the Suzuki franchise, it was the everything in Hamilton. We’ve got returned from Hamilton, where perfect chance to return to her a really good team up there and their Subaru Impreza WRX STi rally home town. keeping that team together is an team is based, to become brand “I’ve always been a Dunedin important part of our planning for managers with Gilmour Suzuki. girl at heart, but if dad didn’t have the 2011 season. Emma is concentrating on sales Suzuki, there wouldn’t be enough “I finished third in the series in and Glenn on after-sales service. for Glenn and I to be involved (in 2009 and runner-up this year, so Suzuki New Zealand says the family business).” you can guess what the aim will strong growth and an increasing Gilmour Motors moved to be for 2011.” market presence meant it was Princes Street three years ago from Emma will maintain her time to have a stand-alone its former large site on Anderson relationship with Subaru New dealership in Dunedin, and it Bay Road. Zealand and will continue to be a appointed Gilmour Motors, “This has always been a car Subaru ambassador. founded 20 years ago by Emma’s dealership, and it has a nice But right now, she’s brushing father, Alistair. showroom,” says Emma. “It was up on her car sales skills. “I’m The Gilmour Suzuki dealership is built in the 1970s but was pretty Emma says that living and learning how to sell cars. It’s in the heart of Dunedin city, opposite run-down when we bought it and working in Dunedin won’t be a exciting being involved in the the Oval at 874 Princes Street. renovated it in the hope of one disadvantage in her campaign to new-car business.” Rick Murrell Petrol prices too high says AA new MTA Petrol prices rose early in believes that prices are too high. October, rising 11 cents, largely on “The latter increases are, the back of scheduled tax increases, however, a little surprising because President after a month without price change. the value of the kiwi dollar has Motor Trade Association (MTA) organisation like MTA. GST added four cents per litre to the risen during the month. When you at its annual conference in Nelson “As MTA President I’m looking price of petrol, while adding three consider there has been a recent has announced that Rick Murrell forward to continuing the good cents to diesel. An increase in excise decline in commodity prices, the will be the next President of MTA. work, and building on the great tax also added three cents to the oil company importer margin – the Murrell was Vice President, with foundations, set up by the previous price of petrol. difference between the retail price outgoing President Phil Bothamley President, Board and staff.” The price of a litre of 91 octane and landed cost of fuel – is certainly not seeking a second term. “The past two years have petrol rose from $1.74 in the main at the high end of the range, Murrell has served on the seen the most difficult economic centres to $1.85 by mid-October. especially for diesel,” he said. Southland branch of the MTA since environment in which most people, The diesel price rose six cents from AA PetrolWatch believes a drop 2003, and its MVDI equivalent from including the automotive industry, $1.19 – where it’s been since July – in the price of both petrol and diesel 1993 to 2005, and served on the have ever operated. The industry to $1.25 per litre. is warranted. MTA board since 2005. has started to show positive signs “The October price rises have “Lately the AA has noticed the Murrell operates a dealership of growth over the last six to nine been the biggest all year, and most oil companies are only moving in Invercargill, Southland Vehicle months. With a challenging year of that has been due to the tax prices up or down two cents per Sales, which sells new vehicles behind us, I am looking forward to increases,” says AA PetrolWatch litre, when in the past they would as well as used. Murrell has a more optimistic year ahead.” spokesperson Mark Stockdale. have dropped four cents at the operated a Kia franchise since CEO Stephen Matthews Stockdale says that a rise in the current margin. Pricewise, the 2004, more recently acquiring expressed thanks to outgoing price of oil added another four cents market doesn’t seem to be as Isuzu utes and Geely. President Phil Bothamley, and said to the price of petrol, and three competitive as it once was. This is Murrell says that it is both a he was pleased to have a member cents to diesel. However Stockdale of concern and AA PetrolWatch will great privilege and an honour as experienced and knowledgeable believes the increase in exchange continue to monitor this situation,” to be chosen to head an as Murrell to lead MTA. rate should have offset the rise, and says Stockdale.

10 | www.autofile.co.nz By Louise Ngaei Sales and Marketing Manager, AutoBase Ltd Internet to Inventory [email protected]

We know that one of the key issues advertise in the same place?  Put the same effort into selling your and appropriately (get a facing dealers at the moment is Once you get your stock online, you car online as you do into selling smartphone). Give prospects how to best manage their internet need to drive traffic to it. your car offline on your yard. confidence that you know what presence – in terms of resources,  Make sure your main photo for  Ensure your staff following up on you are talking about, and be budget and time. Following we have each listing is fantastic, showing all enquiries and provide easy happy with the customer service compiled some of the most common the vehicle at its best. directions to your dealership. they are receiving. Ensure that your questions we receive from dealers,  Make sure there is as much  Provide a rapid connection with the replies include: and our views on them. information as possible about customer.  Knowledge – Answers are your stock and dealership. Tell a thorough and informative to create How do I maximize my online story about each vehicle. Include How do I promote my website creditability with the customer presence in line with my budget as many descriptive keywords, and get more traffic to it?  Proposition – What is your point and resources? You can pay for Search Engine of difference? Are you running any Put your stock Optimisation to drive more traffic deals? Do you offer any special where the to your site, but why not utilise a finance packages? Do you have most people classified website already available similar vehicles? are looking. It and working successfully? Promote  Offer – Have a call to action. Offer makes sense to your website by adding the address other vehicles within their budget, choose a provider to all of your business cards, email a test drive, or a chat over a coffee who gets the most signatures, signage, stationery or beer (if it’s Friday of course!) traffic – Trade Me and brochures. Even better, get a to discuss your vehicles and runs auctions and hyperlink to your website from all of proposition further. classifieds and they put your online listings. When someone is a great deal of money already sitting at their computer there Other than using online and effort into optimizing is much more chance of them clicking classifieds, what shouldI be their search results in into your website rather than trying doing regarding advertising, Google, so you don’t have to remember the address. The more such as a banner ad on Trade Me? to! We suggest following this arrows that point viewers to your Look at the plan – put your money plan. Put 60% of your marketing website, the better. into the place that will get you the spend into online classifieds, 30% most sales. Most large sites have into promoting those listings so features and How do I get better qualified banner advertising starting at around they stand out, and 10% managing unique selling leads and drive a higher $10,000 per week, which is often leads and your staff to make sure points as you can conversion rate from those leads? shared with other advertisers. Go back those leads are being followed up.  Promote your To give online viewers the confidence to the 60/30/10 plan and distribute dealership’s services to make an enquiry, ensure that you your budget accordingly - where you How do I encourage people – what extra services do you have quality listings with good photos are getting the most exposure and to look at and buy from my offer? Focusing on service attracts and lots of information about your the most bang for your buck? online listings? more leads. business and services. This is essential. Once your inventory is online, use any  Entice viewers by running a Make sure that you have a tight follow Try this - pull out a piece of paper upgrade features that your provider campaign or special deal. Do you up process for your staff to help and draft up a 60/30/10 plan using offers as ‘arrows’ to drive viewers to have any specials coming up for bridge the gap between conversions the budget you spent last month. Try your listings. Feature your listings the Christmas period? Are you and sales. It is vital that your staff are some of these suggestions, utilize so they are highlighted and pushed running any competitions? Are following up on all internet enquiries others strengths, follow up every to the top of searches. If you have you giving anything away with quickly and effectively. Speed is enquiry and make sure you take a website add a hyperlink to your purchase? People love a bargain, so extremely important to consumers. great photos and use the maximum listings. This will drive traffic into your promote any services, competitions Invest in a smartphone so you can allowance. Every little bit helps to website. Showcase your vehicles or deals in all your listings as well as reply to emails immediately. No make a difference once you have all together with your company your website. matter how odd every enquiry these things in place. And once you branding, logo and promotional text. should be followed up. We know that do, work on fine tuning them and The more arrows pointing to your How do I bridge the gap between enquiries that are answered promptly enhancing them. As Dale Carnegie stock = more views = more enquiries. online and offline sales? are significantly more likely to convert said: “Don’t be afraid to give your best Develop a solid marketing and to sales. to what seemingly are small jobs. How do I create a point of sales plan: Every time you conquer one it makes difference within my online  Work the 60/30/10 plan and use What are the tools required to you that much stronger. If you do the advertising and differentiate your classifieds website and all it convert internet leads to sales? little jobs well, the big ones will tend my dealership from others who provides to its capacity.  Reply to email leads immediately to take care of themselves.”

www.autofile.co.nz | 11 news

VEHICLES WANTED News in brief BUYING NOW

miles motor group Toyota Nissan Mazda Honda VW Lexus Hyundai Kia Graziano takes over at Ford We are always looking to purchase Robert Graziano has begun work as president and CEO of Ford Australia and New Zealand. He’s based in Melbourne. NZ NEW CARS AND COMMERCIALS Graziano was previously CEO of Ford China where he expanded the dealer PAUL CURIN 0274 333 303 [email protected] network and achieved record growth in sales volume and profits. He replaces Marin Burela who has been appointed president of Changan Ford Mazda Automobile Co. (CFMA), a Ford-Mazda joint venture which is building its third assembly plant and preparing to build a second engine plant, both located in Chongqing, China. Ford’s Asia Pacific and Africa region is expected to provide 70 percent of the company’s growth in the next 10 years, mainly from China. In Ford’s structure, the region includes Australia, New Zealand, China, India, BUYING NOW Thailand and South Africa. Campaign to bring down farm quad bike toll BRETT HARRIS 029 293 1232 The Department of Labour has begun a campaign aimed at reducing serious www.farmerautovillage.co.nz FARmER AUTOvIllAGE injuries and deaths on farms from quad bike accidents. Every year on average five people die and 850 are injured on farms riding quad bikes, and the campaign aims to promote the four basic steps which can Karl Briggs 0274 721 551 [email protected] prevent injuries. The steps are: www.inghammotorgroup.co.nz  Wear a helmet Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ.  Ensure riders are trained/experienced  Don’t let children ride adult quad bikes (over 90cc)  Choose the right vehicle for the job – pay close attention to what your AlwAys Buying Any Vehicle oVer $500 considered quad bike owner’s manual says about carrying passengers, and the ContaCt our staff today Adam Winter ph: 021 635 352 e: [email protected] Kane Owen ph: 021 356 300 e: [email protected] maximum towing and carrying limits. AucklAnd Vehicle consultAnts The campaign is supported by ACC, Federated Farmers and the Motor Industry Association, which represents quad bike manufacturers. NZ company launches first wireless EV charger A New Zealand company has launched the world’s first wireless technology which allows parked or moving electric cars to charge automatically. HaloIPT, a UK based company, is owned by Auckland UniServices Ltd and Ove Arup & Partners. The company is the first in the world to bring to market IPT (Inductive Power Transfer) technology which allows cars fitted with a receiver pad to charge automatically when parked over transmitter pads buried into the ground. IPT systems can also be configured to power all road-based vehicles from small city cars to heavy-goods vehicles and buses. Dr Anthony Thomson, CEO of HaloIPT says the wireless charging pads TO ADVERTISE HERE CONTACT: are designed to function beneath asphalt, submerged in water or covered in ice and snow. Ph 0508 288 863 or 021 455 775 In the future, the technology will be able to be embedded in roads so cars advertising@autofi le.co.nz can be charged on the move. This will solve the range issues electric vehicles have and reduce battery size requirements, says Dr Thompson.

12 | www.autofile.co.nz new cars Micra loses its quirky look

Nissan has gone for toned- powered by a 75kW 1.5-litre motor down and more conventional driving through an automatic styling for its new Micra (March) gearbox. Fuel consumption is which made its Australasian debut quoted at 6.6 litres/100km. at last month’s Sydney motor show. Standard on both models are Gone is the bug-eyed, Vehicle Dynamic Control, ABS anti- awkwardly-tall look of the old car, lock brakes with Electronic Brake replaced by more cleanly-styled Force Distribution and Brake Assist, bodywork that is 85mm longer along with dual front, front side on the front than its predecessor’s. and curtain airbags. Three-point passenger’s A lower centre of gravity seatbelts are fitted to all five seats, and steering wheel-mounted seat. If that seat is combines with a wheel-at-each- with the front seatbelts including controls for the sound system. unoccupied, the rear section of the corner chassis layout to give the car pre-tensioners. The higher-range Ti model adds seat squab can be flipped forward greater stability. A multifunction Drive Computer the Nissan Intelligent Key and push- to provide a secure well for a bag Nissan has yet to announce a and air-conditioning are standard, button engine start/stop, climate- or other small items. New Zealand launch date for the along with a unique digital control air-conditioning, 15-inch Nissan will build New Zealand, new Micra which will be sold here anniversary reminder, remote alloy wheels, and front foglights. Japanese and Australian market in two specification grades, both entry, CD player, auxiliary input jack It also gets a bag storage bin Micras in Thailand. Electrifying future for Porsche

Forget about petrol/electric Panamera sedan whch will only makes sense if it offers of Porsche’s sports car range. A hybrid or pure electric propulsion combine a supercharged V6 with performance and a cruising range key factor will be overcoming the as simply being a way to lower an electric motor and a limited comparable to that of a sports car weight penalty incurred by the emissions and the province of production run of the 918 Spyder today.” battery pack hybrid cars carry. staid taxis and family cars: they plug-in hybrid supercar. Porsche has already shown Porsche’s electrification drive can also spell high-performance Hybrid versions of the 911, with the 918 Spyder that high- is part of its commitment to the excitement. Cayman and Boxster will follow. performance can be achieved Porsche Intelligent Performance That’s the word from German Even more radically, Porsche with a plug-in hybrid. It produces programme which aims to supercar maker Porsche which is will start testing three all- the equivalent of 600 horsepower, combine ultra high-performance planning petrol/electric hybrid electric versions of the Boxster can hit 100km/h in 3.2 secopnds, with environmentally-friendly versions of each of its models, early next year. It will use the yet returns fuel economy of up emission levels and low fuel including the iconic 911. Boxsters to gather data on drive to three litres per kilometre. consumption. They’ll follow the already on- components and battery systems The car reportedly has lapped On a more prosaic level, both sale Cayenne hybrid SUV and the for all-electric cars; the testing the Nurburgring faster than any Toyota and Honda are reported 911 GT3 R Hybrid race car which will also provide information on production Porsche ever has. to be taking petrol/electric combines two 60kW electric the infrastructure required for The 918’s limited production technology into the small car motors driving the front wheels electric cars. run will be used to provide data sector for the first time with with a petrol motor driving CEO Michael Macht says and engineering information on hybrid-powered versions of the the rear and has already raced Porsche “will definitely be how to develop hybrid versions new Yaris and Jazz. successfully. offering an electric sports car In the wings are a hybrid in future. But such a concept version of the four-door

www.autofile.co.nz | 13 disputes

The Case: Two-thirds of repair costs The parties disagreed on what portion of repair costs the trader apportioned to trader was liable for after the vehicle was driven after fault indicators appeared Background to his mechanic, who had a look front bearings) on the express The Decision: On 20 March 2010 the purchaser at the vehicle and advised the understanding that his The tribunal considered that the majority of the damage occurred bought a 2005 Toyota Hilux for purchaser that the problems were payment for those repairs was before the warning light appeared $28,999 from the trader. The more significant than a wheel disputed and the issue as to purchaser and the trader are in bearing. At the trader’s cost the who was responsible for those At: the Motor Vehicle Disputes dispute about the extent of the Hilux was transported to his repairs would be determined by Tribunal, Wellington trader’s responsibility for the cost mechanic for the repairs to be this tribunal. of some repairs that have been carried out. That mechanic gave both the purchaser and the trader carried out on the vehicle. evidence that the back differential The finding contributed to the extent of the was noisy and needed a new set With regard to the CGA’s guarantee damage, deciding that the trader The evidence of bearings. The front differential of acceptable quality, the tribunal was liable for two thirds of the cost, At the time of purchase, the had a major fault. In diagnosing considered that the bearing a sum of $2,054.66. Hilux had an odometer reading the problem he said that there was failures (both front and rear) of 179,495 kilometres. About a considerable movement in the clearly amounted to a failure in the Bruce Dell’s comment month after purchase, the buyer right front axle where it enters the guarantee of acceptable quality. Dispute concerning who to pay called in on his mechanic because front differential housing. Bearing in mind the purchase price costs of some repairs carried out on he noticed that the 4WD light had The mechanic said that the of $28,999, the tribunal considered the vehicle (this case Under Appeal), flashed on and off a few times. problems with the front differential that a reasonable purchaser since the purchaser drove the His mechanic suggested that it were caused by the differential knowing of those problems is vehicle whilst aware of the problem. was possibly a faulty sender and extension housing bearing (for unlikely to have purchased the The dealer’s mechanic was an advised him to bring the Hilux back the right front axle) seizing and Hilux without some abatement of A grade mechanic with 26 year’s the following week. wearing through the extension the purchase price. experience. His evidence was that The following Sunday he drove housing. This allowed differential In determining whether the the back differential needed a new the Hilux on a substantial trip. He oil to escape which in turn caused further damage was also a failure in set of bearings and that the front said that he did not notice any noise further damage to other differential the guarantee of acceptable quality, differential had a major fault and on the trip, significant because it bearings and gears. He said that the tribunal considered whether there was considerable movement became apparent that the problems the 4WD drive light was flickering the further damage was a natural in the right front axle where it with the Hilux were caused by a because there was so much wear consequence of the bearing failure enters the front differential housing. worn bearing which usually comes on the differential housing allowing or whether the purchaser could This shed some light on the fact to the attention because it is noisy. the locking sleeve for the automatic reasonably have been expected to that the 4WD light was flashing. The next day the purchaser disconnecting differential to slide stop driving before some or all of The dealer was happy to meet noticed what he described across into the locking position the further damage was caused. the cost of replacing the rear and alternatively as a screaming or momentarily causing the 4WD light The tribunal noted on the front bearings and argued that the rumbling noise. He thought it to come on. trader’s position that it is much front differential damage occurred was a wheel bearing. He made The parties were unable to easier to give good advice with the because the purchaser kept driving the decision to drive home on the agree about whether the trader benefit of hindsight. The purchaser the vehicle when he shouldn’t have. return leg of Sunday’s trip without should pay for the entire cost took advice from his mechanic Usual arguments concerning having the Hilux checked out. of repairs. The trader’s position about the light and in that regard acceptable quality under The When he got home, he called was that its obligation under the cannot be criticised for continuing Consumer Guarantees Act ensued the trader sought his advice. The Consumer Guarantees Act was to drive the Hilux. In any event, if and under section 18, options trader’s evidence was that he told limited to the cost of replacing the the trader’s submission that the against suppliers where goods do the purchaser that it could be rear and front bearings. 4WD drive light came on because not comply with guarantees are something as simple as a stone in Agreement was reached that the differential housing was considered. the brake calliper and suggested the trader would pay $3,082 for already worn through is correct, Interestingly, the trader was Bruce Dell Law – “problem solver” that the purchaser get the Hilux to the repairs (covering the cost of the bulk of the damage would have required to pay $2,054.00 which a mechanic. repairs to the front differential less already autooccurredfi le byare thisdelighted time. to have seeminglyBruce as part was ofless the than Autofi he hadle team advising our readers The purchaser drove the Hilux the cost of replacement of the The tribunalon the lessonsconcluded to be that learned fromoffered past toMotor pay earlier.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 14 | www.autofile.co.nz

. Problem bd solver law disputes

The Case: Delay in reporting rust means The purchaser discovered signicant rust that had been covered over purchaser’s rejection not upheld with an under-seal The Decision: A delay in reporting the rust meant Background the manufacturing process. to replace the vehicle’s chassis that while the dealer had to cover On 20 March 2008 the purchaser The purchaser sought the rails. The trader told the repairs, the vehicle could not be bought a 2001 Ford Falcon Utility opinion of a panel beater, who tribunal that as a gesture of rejected for $17,500 from the trader. The gave evidence to the tribunal that goodwill the trader had offered At: the Motor Vehicle Disputes purchaser since then discovered the vehicle had severe corrosion to either contribute $3,000 Tribunal, Wellington significant rust in the vehicle and and that the rust had been present towards the cost of repairs or to applied to reject the vehicle and for well over two years. The panel purchase the vehicle from the obtain a refund of the purchase price. beater agreed that the vehicle had purchaser at its current wholesale The trader did not dispute that been sprayed with under-seal to value. The trader’s estimate of the exercised within a reasonable time. the vehicle had a rust problem or cover up the corrosion. He reached value is $8,600 including GST. The tribunal ruled that the that it had existed for some time. this conclusion because the sprayed purchaser is entitled to damages The trader submitted however that area does not have what he termed The finding to compensate him for the loss in the current extent of the problem “factory texture” in comparison to On the basis of the evidence, value of the vehicle. This value is to is not the trader’s responsibility other parts of the vehicle. He did the tribunal concluded that the be calculated as the loss from the because the purchaser delayed his not agree that the rust was localised vehicle had a rust problem in the time of purchase to the time when claim and during the course of that to the chassis rail – his evidence was chassis rails when it was sold to it would have been reasonable for delay the rust problem worsened. that rust was also developing on the purchaser in March 2008. The the rust to be discovered, which the the sill and sill seams. His conclusion painting the vehicle with under- tribunal considered to be March The evidence was that there were more rust seal was an attempt to cover over 2009. The parties were therefore At the time of purchase the vehicle problems on the way and for that the rust, which inevitably delayed ordered to gain evidence of the had an odometer reading of 75,000 reason he said he would personally discovery of the problem. The retail value of the vehicle as at kilometres. The purchaser had not be prepared to try and repair tribunal noted that there was no March 2009 without the rust issues, travelled 44,000 kilometres in the the vehicle. evidence to suggest that this was and a value of the vehicle for the vehicle since he bought the car. In The purchaser gave evidence done by the trader. same period with the rust issues. essence the facts are not in dispute. about his use of the vehicle. He The tribunal found that there The purchaser discovered that said he was not responsible for the was a failure in the guarantee the vehicle had a significant rust under-seal spray. No rust issues of acceptable quality when the Bruce Dell’s comment problem when the vehicle failed a were detected when he first had vehicle was sold to the purchaser. The purchaser found considerable warrant of fitness inspection due to the vehicle inspected for a warrant To have rusted to a point where rust post purchase and then rust in the chassis in February 2010. of fitness in September 2008. the vehicle failed a warrant of sought to reject the vehicle The mechanic who inspected Thereafter the vehicle was not fitness inspection approximately and obtain a refund of the total the vehicle gave evidence that inspected for a further warrant of two years after purchase indicates price. The dealer argued that the the under-side of the vehicle had fitness until February 2010 when a lack of durability that a rust was always there but had significant rust, evident in both the rust was detected, six months reasonable consumer would not worsened since purchase as he chassis rails which have perforated after the WOF was due. regard as acceptable. had travelled some 44,000km. rust occurring from the inside out in The trader’s submission was The purchaser wished to Again, acceptable quality both rails. He noted that the vehicle that although the he did not reject the vehicle, owever his under the Consumer Guarantees has been sprayed with under-seal dispute that there was some rust delay in having a WOF inspection Act considered and argued and in an effort to disguise the rust on the vehicle when it was sold done meant that the rust was whether there was a substantial problem. In his view the under-seal to the purchaser, there had been not discovered until later than failure in the guarantee of had been there for a significant significant delays in bringing that should have been expected, and acceptable quality and again period of time and likely before to the trader’s attention resulting in his additional three month delay section 18. the purchaser bought the vehicle. further deterioration that was not in notifying the dealer were both Ultimately ruled that the dealer Because the rust was so significant the trader’s responsibility. of consequence. The tribunal had to cover the cost of repairs but and was limited to the chassis rail, The trader has had the vehicle therefore found that the purchaser not replace the vehicle or pay back he wondered whether the vehicle inspected by a mechanic who lost the right to reject the vehicle the full price. It would seem a logical had missed a rust treatment during provided an estimate of $6,103.13 because the right to reject was not and sensible decision was made.

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www.autofile.co.nz | 15 industry statistics

Around the country Total New Cars 5866 2009: 5680  3.3% Car sales - October 2010 Total Used Cars 6958 2009: 6044  15.1%

Whangarei NEW: 116 2009: 73  58.9% Used: 118 2009: 126  6.3% Thames NEW: 33 2009: 39  15.4% Used: 53 2009: 37  43.2% Auckland NEW: 3116 2009: 3288  5.2%  Used: 3445 2009: 2935 17.4% Tauranga NEW: 140 2009: 148  5.4% Used: 291 2009: 241  20.7% Hamilton NEW: 246 2009: 249  1.2% Used: 423 2009: 392  7.9% Rotorua NEW: 25 2009: 35  28.6% Used: 79 2009: 48  64.6% New Plymouth NEW: 68 2009: 78  12.8% Used: 115 2009: 99  16.2%

Gisborne NEW: 23 2009: 29  20.7% Wanganui Used: 41 2009: 24  70.8% NEW: 40 2009: 33  21.2% Used: 45 2009: 27  66.7% Napier NEW: 99 2009: 107  7.5% Palmerston North Used: 165 2009: 124  33.1% NEW: 107 2009: 119  10.1% Used: 164 2009: 119  37.8% Masterton NEW: 23 2009: 34  32.4%  Nelson Used: 30 2009: 27 11.1% NEW: 39 2009: 41  4.9% Used: 135 2009: 153  11.8% Wellington NEW: 424 2009: 391  8.4% Used: 577 2009: 568  1.6% Westport NEW: 3 2009: 1  200.0% Used: 8 2009: 7  14.3% Blenheim NEW: 27 2009: 35  22.9% Used: 26 2009: 21  23.8% Greymouth NEW: 12 2009: 7  71.4% Used: 29 2009: 25  16.0% Christchurch NEW: 1147 2009: 779  47.2% Used: 882 2009: 762  15.7%

Timaru NEW: 25 2009: 32  21.9% Used: 72 2009: 58  24.1%

Oamaru NEW: 7 2009: 6  16.7% Used: 9 2009: 18  50.0%

Dunedin NEW: 102 2009: 111  8.1% Used: 170 2009: 156  9.0%

Invercargill NEW: 44 2009: 45  2.2% Used: 81 2009: 77  5.2%

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16 | www.autofile.co.nz hoegh Xiamen V1 loading Osaka 28 oct, Nagoya 29 oct, Yokohama 30 oct arriVing Auckland 24 nov, Wellington 26 nov, Lyttelton 27 nov

spring sky V2 loading Osaka 14 nov, Nagoya 16 nov, Yokohama 17 nov arriVing Auckland 1 dec, Wellington 3 dec, Lyttelton 4 dec

Madame butterfl y V4 loading Osaka 26 nov, Nagoya 27 nov, Yokohama 28 nov arriVing Auckland 22 dec, Wellington 24 dec, Lyttelton 25 dec

tbn V1 loading Osaka 14 dec, Nagoya 16 dec, Yokohama 17 dec arriVing Auckland 4 Jan, Wellington 6 Jan, Lyttelton 7 Jan industry statistics

New Commercial Vehicle Sales by Make October 2010 Oct ‘10 Mkt YTD Mkt Make Oct ‘10 Oct ‘09 +/- % Share 2010 YTD 2009 YTD +/- % share Weaker Toyota 390 331 17.8 27.3% 4,712 3,692 27.6 30.4% October for Nissan 190 112 69.6 13.3% 2,033 1,426 42.6 13.1% Ford 180 211 -14.7 12.6% 2,253 2,029 11.0 14.5% new vehicles Mercedes-Benz 138 47 193.6 9.6% 498 427 16.6 3.2% Mitsubishi 102 94 8.5 7.1% 1,206 961 25.5 7.8% Sales in October were predictably down on September, Mazda 76 85 -10.6 5.3% 911 851 7.1 5.9% with many marques seeing their Holden 66 84 -21.4 4.6% 1,264 1,096 15.3 8.1% year on year growth take a slight Hyundai 53 27 96.3 3.7% 328 354 -7.3 2.1% drop from last month. Volkswagen 47 23 104.3 3.3% 251 261 -3.8 1.6% However Motor Industry Isuzu 40 26 53.8 2.8% 385 409 -5.9 2.5% Association chief executive office Perry Kerr says the new Mitsubishi Fuso 39 15 160.0 2.7% 296 269 10.0 1.9% vehicle market continues to Great Wall 22 21 4.8 1.5% 174 99 75.8 1.1% hold its own with October 2010 Hino 15 20 -25.0 1.0% 257 221 16.3 1.7% new car registrations 3.2% Scania 14 13 7.7 1.0% 131 183 -28.4 0.8% ahead of October 2009 and Fiat 13 19 -31.6 145 179 -19.0 commercials up 17.5% over the Suzuki 7 11 -36.4 85 106 -19.8 same period. Reviewing the release of new Freightliner 5 9 -44.4 36 95 -62.1 vehicle registrations, Kerr said Iveco 5 6 -16.7 66 70 -5.7 the new vehicle industry was Man 5 37 -86.5 36 103 -65.0 pleased with October numbers. Kenworth 4 3 33.3 55 62 -11.3 “The month began slowly, which Nissan diesel 4 3 33.3 70 98 -28.6 was not unexpected following the GST increase and the fleet Other 16 21 -23.8 202 260 -22.3 sales that had been brought TOTAL 1431 1218 17.5 15,521 13,383 16.0 forward the previous month. Sales did heat up in the last weeks,” he said. New Commercial Vehicle Sales by Model - Oct 2010 However rental figures played a strong part, with 61% Oct ‘10 Mkt YTD Mkt Make Model Oct ‘10 Oct ‘09 +/- % Share YTD Share of purchases in the top 15 Toyota Hilux 216 187 15.5 15.1% 3,105 20.0% passenger vehicles being by rental companies, including Nissan Navara 183 102 79.4 12.8% 1,940 12.5% 726 Corolla, 299 Falcons, 222 Toyota Hiace 161 125 28.8 11.3% 1,429 9.2% Commodore, 173 i30, 131 Focus Ford Ranger 111 144 -22.9 7.8% 1,509 9.7% and 126 Mazda3. For the top Mercedes-Benz Sprinter 111 34 226.5 7.8% 263 1.7% selling Corolla (852 units) rentals Mitsubishi Triton 72 67 7.5 5.0% 916 5.9% account for 85% of total sales. Mazda Bt-50 60 72 -16.7 4.2% 726 4.7% Some in the rental market have pegged a softer summer Hyundai H1 53 27 96.3 3.7% 323 2.1% tourist season, with Europe Holden Colorado 48 68 -29.4 3.4% 1,008 6.5% and America still experiencing Ford Transit 47 61 -23.0 3.3% 500 3.2% slow economic growth. While Mitsubishi L300 26 27 -3.7 1.8% 282 1.8% Australia’s economy and dollar Great Wall V240 22 7 214.3 1.5% 135 0.9% are strong, many Australians travel further afield. Others in Volkswagen T5 16 15 6.7 1.1% 142 0.9% the rental market were more Other 305 275 10.9 21.3% 3,243 20.9% buoyant about prospects, TOTAL 1431 1211 18.2 100.0% 15,521 100.0% saying they’re expecting a

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18 | www.autofile.co.nz industry statistics

New Passenger Vehicle Sales by Make October 2010 New Passenger Vehicle Sales by Make October 2010

Oct 2010 Oct 2010 MAKE OCT ‘10 Oct ‘09 +/- % Market YTD YTD Market MAKE OCT ‘10 Oct ‘09 +/- % Market YTD YTD Market share 2010 2009 share share 2010 2009 share

Toyota 1533 1775 -13.6 26.1% 9594 8,977 18.6% Skoda 37 15 146.7 0.6% 221 227 0.4%

Ford 743 645 15.2 12.7% 5551 5,318 10.8% Mini 36 9 300.0 0.6% 222 192 0.4%

Holden 719 660 8.9 12.3% 5327 4,499 10.3% Lexus 32 25 28.0 0.5% 322 313 0.6%

Hyundai 579 380 52.4 9.9% 4429 3,808 8.6% Dodge 29 15 93.3 0.5% 230 133 0.4%

Mazda 443 381 16.3 7.6% 4444 3,823 8.6% Land Rover 28 11 154.5 0.5% 290 110 0.6%

Suzuki 352 262 34.4 6.0% 3752 3,037 7.3% Jeep 19 12 58.3 245 203

Mitsubishi 230 179 28.5 3.9% 2510 1,705 4.9% Citroen 13 20 -35.0 126 148

Nissan 200 246 -18.7 3.4% 2442 2,281 4.7% Ssangyong 13 2 550.0 89 21

Kia 162 205 -21.0 2.8% 1746 1,788 3.4% Daihatsu 11 12 -8.3 175 335

Volkswagen 138 139 -0.7 2.4% 1748 1,428 3.4% Alfa Romeo 10 11 -9.1 95 106

Honda 125 164 -23.8 2.1% 2015 2,424 3.9% Volvo 9 8 12.5 119 138

Subaru 121 147 -17.7 2.1% 1714 1,227 3.3% Porsche 6 8 -25.0 121 101

Audi 73 82 -11.0 1.2% 1126 897 2.2% Aston Martin 4 4 0.0 24 6

BMW 59 106 -44.3 1.0% 1024 820 2.0% Jaguar 4 9 -55.6 69 66

Peugeot 59 51 15.7 1.0% 618 556 1.2% Other 15 35 1.96% 494 484 1.0%

Mercedes 53 62 -14.5 0.9% 730 774 1.4% Total 5855 5680 3.08 100% 51612 45945 strong season. Toyota’s general manager, New Passenger Vehicle Sales by Model - top 15 Oct 2010 sales and marketing Steve Make Model Oct ‘10 Oct ‘09 +/- % Oct Mkt YTD YTD Mkt Prangnell says based on the Share Share orders they’ve received he’s Toyota Corolla 852 1111 -23.3 14.5% 3,695 7.2% expecting it to be a good year for Holden Commodore 412 394 4.6 7.0% 2,063 4.0% the tourist season, saying that Ford Falcon 400 356 12.4 6.8% 2,007 3.9% rental orders, placed in advance for purposes of guaranteeing Mazda Mazda3 226 167 35.3 3.9% 1,835 3.6% stock, have been high. Hyundai I30 223 80 178.8 3.8% 1,305 2.5% Breaking down the figures Suzuki Swift 201 165 21.8 3.4% 2,317 4.5% October new car registrations saw 5,866 registrations which Ford Focus 188 72 161.1 3.2% 1,007 2.0% was 3.2% on October 2009. Year Toyota RAV4 176 149 18.1 3.0% 1,168 2.3% to date the market remains Hyundai Getz 144 138 4.3 2.5% 641 1.2% 12% ahead of 2009. In the Toyota Highlander 142 54 163.0 2.4% 821 1.6% commercial segment October registrations were strong at Mazda Mazda6 123 126 -2.4 2.1% 1,435 2.8% 1,431 units which compares with Toyota Yaris 119 231 -48.5 2.0% 1,103 2.1% 1,218 registrations in 2009. Year Holden Barina 111 49 126.5 1.9% 471 0.9% to date this segment is running 16% ahead of 2009. Many of the Holden Captiva 97 56 73.2 1.7% 898 1.7% larger players, including Toyota Holden Cruze 85 129 -34.1 1.4% 1,424 2.8% and Nissan, continue to report Other 2,367 2403 -1.5 40.4% 29,422 57.0% supply constraints in the light commercials. TOTAL 5,866 5,680 3.3 100.0% 51,612 100.0%

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www.autofile.co.nz | 19 industry statistics

Used Commercial Vehicle Sales by Make - Oct 2010 Make Oct ‘10 Oct ‘09 +/- % Oct Mkt Share Mixed market for imports Nissan 85 94 -9.6 41.67% Toyota 44 80 -45.0 21.57% The October used import okay when they’re probably Isuzu 17 27 -37.0 8.33% market showed a decline on not. We’ve done advertising but September, with sales dropping there doesn’t seem to be any Mazda 16 23 -30.4 7.84% from 7,430 to 6,958. The October immediate response from it at Ford 10 31 -67.7 4.90% sales were 15.1% ahead of all. I believe the vehicles we’ve Chevrolet 7 8 -12.5 3.43% October 2009, while the used sold are just because of price, Mitsubishi 7 8 -12.5 3.43% market passenger market year from people driving past or from Holden 5 2 150.0 2.45% to date is up 34% on the same referrals. We’ve almost given up Fiat 3 2 50.0 1.47% period last year. advertising because we seem to Suzuki 2 1 100.0 GST was no doubt a factor in spend so much and get virtually Bristol 1 lower October figures, despite no response. Chrysler 1 few in the used import industry “Occasionally we do alright and Factory Built 1 1 0.0 reporting any sign of a pre-GST sell five cars in one week. You think GMC 1 rise in September. things are on the up, but then next Hino 1 Sales of used imports in week it drops again.” Kenworth 1 Christchurch have tracked down Baylis sells vehicles in the Mitsubishi Fuso 1 slightly since the September 4 cheaper bracket, between Renault 1 earthquake, a result not out of $3k-$6k, and says that a lot of his Total 204 313 -34.8 100.00% step with the rest of the country. competitors in the market have Darren Baylis, owner of Baylis gone out of business. He says his Used Commercial Vehicle Sales by Model - Oct 2010 Motor Company in Christchurch, workshop and WOF business have says that market slowed down allowed him to keep going. He is Make Model Oct ‘10 Oct ‘09 +/- % Oct Mkt Share well before then, but that the also relatively optimistic however Nissan Caravan 43 39 10.3 21.1% earthquake certainly hasn’t that as the total market increases Toyota Hiace 31 53 -41.5 15.2% helped things. the dealerships remaining will Nissan Vanette 23 40 -42.5 11.3% “Some dealers appear to be receive a greater share of sales. Isuzu Elf 13 16 -18.8 6.4% doing okay, some say they’re As a traditional outlet for trade- Mazda Bongo 12 16 -25.0 5.9% Nissan Elgrand 10 4.9% Nissan Atlas 6 9 -33.3 2.9% Holden Rodeo 4 2.0% Toyota Dyna 4 2.0% Chevrolet Silverado 3 1.5% Fiat Ducato 3 1.5% Ford F150 3 1.5% Other 49 140 -65.0 24.0% Total 204 313 -34.8 100.0%

Supplied by Supplied by MTA New Passenger Registrations MTA Used Import Passenger Registrations 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 14000 9000

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20 | www.autofile.co.nz industry statistics

Used Passenger Vehicle Sales by Make - October 2010 Mixed market for imports Make Oct ‘10 Oct ‘09 +/- % mkt Share YTD 2010 YTD % Toyota 1938 1495 29.6 27.9% 19941 27.3% ins, Baylis believes the availability Nissan 1220 1005 21.4 17.5% 11771 16.1% of vehicles is a good indicator of Mazda 871 630 38.3 12.5% 9113 12.5% how other dealers are doing in the Honda 753 798 -5.6 10.8% 9401 12.9% market. “Previously we were being Subaru 576 487 18.3 8.3% 6346 8.7% supplied by around ten dealers, and Mitsubishi 398 376 5.9 5.7% 4286 5.9% once the recession kicked in dealers BMW 277 204 35.8 4.0% 2888 4.0% were no longer happy to get just Volkswagen 184 173 6.4 2.6% 1997 2.7% what they traded the vehicle for, but now they’re trying to get a $500 Suzuki 147 187 -21.4 2.1% 1984 2.7% earn on them; or they’re retailing Ford 115 102 12.7 1.7% 1468 2.0% them out the back as trade-in Audi 63 48 31.3 0.9% 761 1.0% specials. They’re just not filtering Mercedes-Benz 52 68 -23.5 0.7% 633 0.9% them down to us but are having a Chevrolet 40 39 2.6 0.6% 470 0.6% second bite out of the apple.” Hyundai 40 105 -61.9 0.6% 542 0.7% Auckland dealer Rod Milner Peugeot 35 46 -23.9 0.5% 436 0.6% says that the last two months have Chrysler 32 32 0.0 0.5% 376 0.5% been pretty poor in terms of sales, Volvo 29 31 -6.5 318 believing that a confluence of Jaguar 17 17 0.0 223 bills, inflation, and rates being due Land Rover 17 15 13.3 128 means that most people have little Porsche 15 26 -42.3 58 or nothing left at the end of the Isuzu 14 12 16.7 142 week, let alone to begin thinking Alfa Romeo 13 21 -38.1 138 about purchasing a vehicle. Jeep 12 3 300.0 95 “Everyone’s struggling.” Rolls-Royce 12 1 1100.0 20 However Milner says he’s noticed a rise since the beginning Holden 11 13 -15.4 111 of November. “We’ve noticed a Daihatsu 8 18 -55.6 160 better start to the month Saab 8 16 -50.0 78 than last year, so we’ve Opel 7 22 -68.2 127 kicked away, and with Other 54 49 10.2 645 another two or three Total 6958 6044 15.1 73036 deals in the bin we’d be calling it a good month.” Milner says he’s got no Used Passenger Vehicle Sales by Model - Top 20 Oct 2010

idea how the remainder Make Model OCT ‘10 OCT ‘09 +/- % mkt Share YTD 2010 YTD % of the year will go, but Subaru Legacy 349 288 21.2 4.7% 3,606 4.8% says, “a born optimist”, Toyota Corolla 343 238 44.1 4.6% 3,606 4.8% that the market has got Toyota Estima 268 184 45.7 3.6% 2,473 3.3% to improve. VINZ’s general manager Mazda Atenza 241 128 88.3 3.2% 2,376 3.2% Frank Willet says used imports Toyota Vitz 235 195 20.5 3.2% 2,175 2.9% for November and December Nissan Primera 193 152 27.0 2.6% 1,923 2.6% are looking to be reasonably Mazda Demio 171 182 -6.0 2.3% 2,066 2.7% strong, with the Ports of Auckland Honda Odyssey 159 213 -25.4 2.1% 1,861 2.5% reporting a good number Nissan Bluebird 145 129 12.4 2.0% 1,495 2.0% of berthings booked for the Honda Stream 142 93 52.7 1.9% 1,747 2.3% remainder of the year. Subaru Impreza 142 158 -10.1 1.9% 1,792 2.4% “We’ve got our compliance Honda Accord 133 98 35.7 1.8% 1,602 2.1% centre customers checking that Mazda Axela 129 1.7% 1,263 1.7% we’ve got staff availability over the Nissan Wingroad 129 124 4.0 1.7% 1,135 1.5% holiday period. One of our larger Toyota Altezza 117 89 31.5 1.6% 1,055 1.4% compliance shop customers in Mitsubishi Lancer 116 123 -5.7 1.6% 1,126 1.5% Auckland has confirmed that this Honda Civic 112 125 -10.4 1.5% 1,667 2.2% year they will not be closing in Toyota Ipsum 112 1.5% 917 1.2% between Christmas and New Year Nissan Skyline 98 1.3% 730 1.0% due to servicing requirements, where they did shut last year.” Volkswagen Golf 95 1.3% 1,007 1.3%

www.autofile.co.nz | 21 regional focus Fingers crossed that there won’t be another drought

Northland car dealers are or fourth place finish in the market. VW Amarok joining farmers in crossing their Hyundai has really come of age. fingers that there won’t be another “The Santa Fe (compact SUV) drought this summer, because a is leading the Hyundai sales buoyant farming sector is crucial for charge, but the iX35, the Tucson good car sales. replacement, has really hit its straps.” The Northland drought hit With the impending launch of farmers hard this year, and their the i45 mid-sized car, Illebrun says lower spending power hit the Hyundai will have a set of models region’s retail motor trade hard. that will perform strongly. Farmers tightened their belts VW is launching the new Touareg and spent only on essentials, and the Amarok, its first double cab delaying vehicle replacements. Add four-wheel drive ute which Illebrun that on top of the recession and you is looking forward to. “In Northland, have a very tough climate in which utes make up about 40 percent of to try to sell cars. the new car business. The Amarok Whangarei dealers told Autofile will be a big thing for VW.” they’re hoping there won’t be a He says VW is chasing major repeat this summer. growth in New Zealand over the As one dealer put it, “we had next few years, targeting a wider survived the recession and then had range of buyers than just people internet inquiry and we get a lot of out legs chopped out from under us looking for a prestige car. sales from the site because it’s nice by the drought.” Nissan is IC’s longest standing and easy to use.” His site is linked to Kelly Illebrun, dealer principal franchise, and Illebrun says it will roll all the major search engines. of Whangarei’s IC Motor Group, out its “new dynamic management To compete with TradeMe, dealers says sales have been “a bit thin” team” in about two weeks when it need to use the internet as a tool that since the drought struck. IC is launches the new Micra. “They’ve works for them. “You have to look at multi-franchise, with Hyundai, had a recent re-shuffle of the top what’s on the market and try to buy Volkswagen, Nissan and Chinese echelon of their team and there’s a and sell to compete with them. You newcomer Geely in its portfolio. new breed coming in there. have to make your cars stand out. “The drought at the tail end of “So (I’m selling) three brands that “What I feel with the market is last season impacted on (farmers’) are going places.” you get as much out of it as you put cash flow and expenditure and Securing Geely is an investment into it. If you concentrate on your we’ve seen the effects in the for the future. “It’s in its infant stages. stock and on having a variety you centre of town. We’ve seen some It isn’t known here yet. We got can generally do quite well.” significant shops close which is a involved because of where it’s going Lambert says that though he strong message about business on to be.” He believes Chinese brands faces competition from Turners the street.” will become major players much Auctions and major franchise But the last quarter has seen more quickly than the Japanese or holders, “sticking to what we know some improvement in new car Koreans did. means our sales haven’t really “If people can see the sales, though “a lot of metal But if IC’s used car sales “have not changed right through the whole value of buying a later model, has been shifted for the sake of been that great.” recession. We still do our numbers.” higher kilometre car where the needing to be shifted.” “Our strategy is to look at how He says, though, that the market depreciation has been done, that’s Illebrun says IC Motor Group was we get more of the (sales done over) fluctuates. “You do seem to have where we are. That’s what we’ve helped by being a multi-franchise the internet. Dealers make up a very these waves were you have two or been selling, Falcons, Commodores, dealership and by selling Hyundai small percentage of selling used three really good selling and trading bigger cars, SUVs, though we have a and VW, two brands that are making cars and we have to look at how we weeks and then suddenly someone range of smaller cars too. What I do major strides, are aggressively can bring back unit sales again. It’s turns the tap off.” is a buy what I like.” marketed and have committed and all about the internet and having AllKars sells mainly New Lambert sees Falcons and dynamic New Zealand head office specialist internet sales people.” Zealand-new late model cars Commodores as perfect for New teams driving progress. Bryan Lambert who has with 100,000km on the clock. “I Zealand. “They’ll fit a family of five, “Hyundai is going very well. I’ve operated large-scale used car don’t have my cars the same as tow the boat, go uphill without just come back from their end of company AllKars for 25 years, agrees the franchises’ late model and low going backwards. I like them and year conference and they’ve got on the importance of the internet. kilometre ones. I have the same that’s what I have,” their sights aimed at the top of the “I’ve spent a lot of money on my year and model with a bit more He says that in the highly- tree. They’re well ahead of their internet site to make sure I have kilometres and cheaper and that’s competitive Whangarei market, “we targets and are confident of a third a nice website. We get real strong just knowing your market. have constantly grown and we have

22 | www.autofile.co.nz “The new Ford Ranger will take were affected but it wasn’t huge. a bit of that market, with its car-like Where farmers don’t buy, rural Fingers crossed that there won’t be another drought drive and spacious cab.” contractors do. A lot of them In that market, too, will be picked up a lot of work because of a good niche.” of the population that wants to Mazda’s more radically-styled BT-50 the drought, although a few who He’s confident things will get come and see and touch and feel ute. Before he saw it in the metal at did hay had no work at all.” better. “I think (the recession) is something before they buy it.” the Sydney motor show, Sheard says Gibson thinks the next few a wheel and everything comes Hamish Sheard, dealer principal he thought “maybe they’d taken months look “quite positive. Farmers around and goes around and it’s at Ford and Mazda franchise, the Mazda DNA too far – taillights are cautious and you can’t blame coming back around.” Pacific Motor Group, says the rural in the tailgate – but when you see them. They’ve had a payout but He says the recession has hit the and construction industries are it, it grows on you. It’s like it’s almost what a lot of people don’t realise “fly-by-night yards” hardest. quiet. “We’re not seeing a lot of aimed at a different market. that farmers are only getting back “They’ve all gone. inquiry from them. We had a small “When I came back from the money that they lost last year. “If you’re established and have pre-GST sales spike in September show I showed photographs I’d They’re not on the front foot yet been selling cars for a long time and ­– in small cars and small SUVs – taken of it to my wife and teenaged and they could be facing another haven’t been ripping other people but for commercials it was another daughter and they said: ‘what a drought this year. off, then I feel as a car yard that we average month. nice-looking ute’.” “Northland farmers are hanging will always be there. “Used cars are very slow. The He thinks the new Thai-built Ford on and not spending unnecessarily, “Whether we’ll be the size we deals we’re getting are hard work Fiesta, with its higher spec might but saying that there are some real are, I’m not sure. Whether we go to a and we’re not seeing a lot of finance double the sales for the model. positive signs out there that the more internet-based site, I’m not sure; buyers.” People are hanging on to “With the next generation of mid- next (couple of) months we will because there’s still a big percentage their tax cut money. range Ford and Mazda cars, we’ve have a great end to the year.” But he remains optimistic. “I got some grouse product to look Though Northland Kia owner, think we’re going to start to see the forward to.” Kia Cerato Stephen Moore has a small-scale private buyer market and the used As always, though, the key is dealership, he believes he has a car market start to creep back up in having the right stock at the right trump card up his sleeve – the mid to late November.” price at the right time. “There’s no Kia brand. He believes people who five to secret formula (of what sells), no He had strong sales months in six years ago would have been new pattern. It’s frustrating.” August and September, though car buyers will now buy two- to But he believes things will they followed two of the worst three-year-old used cars. pick up, “if we don’t have another months he’d had all year which Pacific also has a bike shop and drought.” shows the market’s volatility. it has had good inquiry for ATVs, Northland Toyota sales But he sees the improving sales especially from the dairy sector. “I manager, Geoff Gibson, says being as a sign of Northland’s recovery. think you’ll see ATV sales back up a Toyota dealer has given the “They reckon $600 million was before you’ll see utes.” company “a little bit of an edge” in the impact of the drought on the Sheard says large SUV and car a tough sales climate. region; it had as big an impact as sales have been hit hard by the “We haven’t found it incredibly the recession.” drought and recession and there’s hard, but it’s certainly not easy. Finance company collapses also a trend for people who previously You really have to work for every made things tougher for buyers. bought them to move to luxury utes. deal, but we’ve seen an increase in Elderly people, traditionally the new cars on last year and used cars biggest private buyers of new cars,

Mazda BT-50 have seen an increase. August and were hit hardest. “People would September were the strongest used have bought (a new car) and car months we’ve had in two years.” wanted to but couldn’t because Gibson says SUV sales have they’d lost all their money.” picked up. “We’ve had a huge Northland Kia has never been run on seven-seat Highlanders. I a big seller of used cars, though it think that’s due to the fact that it’s had a good month in September. become more acceptable and is But Moore says he wouldn’t like to seen as a logical choice. My wife be relying solely on used cars for his would kill me if I brought home income in the current climate. an Estima but if I took home a He says having the Kia franchise Highlander it just ticks all the boxes gives him confidence for the future. for a medium-sized family.” “Kia is one of the brands to have. He says there’s been a huge If you look at the product coming amount of interest in the new through, I think it’s exceptionally model Hilux with stability control, good. They’ve caught up to Toyota traction control and brake assist. and I believe that in terms of value But he adds, “we’ve seen a for money, quality and reliability, Kia lot of farmers stop buying. We are the benchmark.”

www.autofile.co.nz | 23 A one-off dealer-only auction, to raise funds for IMVIA Auction: To be run by Turners, Auckland Wednesday, 17 November, starting at 5:30pm.

30 no-reserve IMVIA vehicles, all with 12 months Autosure warranties 20 further vehicles Open to all dealers

STOCK YEAR MAKE MODEL TYPE CHASS CC TRAN KM COLOUR FEATURES GRADE A201021 2003 BMW 316Ti Compact 3/Lbk AT18 1800 A4TT 107700 Blue FACELIFT,1.8-LITRE,TIPTRONIC 3.5 A201026 2001 Honda Integra 2.0i-S 3/Lbk DC5 2000 A4TT 108350 Silver MODULO BODYKIT, 17"BBS AW,AAC 3.5 A201003 2003 Honda Odyssey Absolute 5/SW RA8 3000 A4TT 99900 Black 7-STR,ABSOLUTE,BODYKIT,18" VAULT AW 4 A201002 2003 Mazda Atenza 23S-Sport 5/Lbk GG3S 2300 A4TT 20900 Yellow SPORT BODYKIT, 17"AW,SIDE-CURT SRS,DSC A201005 2003 Mazda Bongo Brawny 5/Van SKE6V 2000 A4 110200 White LOW-FLOOR,DUALS,DBL-SIDE DOORS,2.0 3.5 A201013 2003 Mazda Bongo DX SWB 5/Van SK82V 1800 M5 75700 White DOUBLE SIDE DOORS,SWB,LO-ROOF 3 A201011 2003 Mazda Demio 1.3 AutoExe 5/Hbk DY3W 1300 M5 34300 Dk Blue FULL BODYKIT,A'MKT AW,AUTOEXE KIT 4 A201009 2001 Mazda Demio 1.3 Purel 5/Hbk DW3W 1300 A4 63070 Gold PS,PW,PM,CL,AC,ABS,ABAGx2 A201014 2005 Mazda Demio 1.5 Casual 5/Hbk DY5W 1500 A4 96500 Lt Blue FACELIFT,ALLOYS A201015 2002 Mazda MPV 2.3 Sports 5/SW LW3W 2300 A4 118650 Black 7-STR, SPORTS BODYKIT,ALLOYS 3.5 A201016 2003 Mitsubishi Colt Elegance 5/Hbk Z25A 1340 CVT 26700 Lt Blue HIGH-GRADE INTERIOR,CLIMATE AIR 3.5 A201007 2003 Mitsubishi Colt Elegance-X 5/Hbk Z25A 1340 CVT 36600 Lt Blue AAC,ABS,ABAGx2,HIGH-SPEC INTERIOR 4 A201008 2003 Mitsubishi Colt Sound Beat Ed 5/Hbk Z25A 1340 CVT 67350 Red AC,ABS,ABAGx2,SERV.HISTORY 4 A201024 2002 Mitsubishi Galant Viento 2.0 4/Sdn EA7A 2000 A4TT 88250 Silver BODYKIT,ALLOYS,TIPTRONIC 4 A201025 2001 Nissan Bassara 3.0V 5/SW JHU30 3000 A4 106960 Champagne 8-STR,3-LITRE,AACx2,BODYKIT,ALLOYS 4 A201028 2001 Nissan Liberty Rider 5/SW RM12 2000 CVT 72000 Silver 7-STR,FULL RIDER BODYKIT,AW,PT-LEATHER 3.5 A201001 2003 Nissan Primera 2.0 4/Sdn TP12 2000 CVT 66680 Silver CHARCOAL INT, REVRSE-CAM,AAC 4 A201022 2005 Nissan Tiida Latio 15B 4/Sdn SC11 1500 A4 71880 White GREY INTERIOR,AC,ABS,ABAGx2 A201027 2002 Subaru Legacy B4-RS25 4/Sdn BE9 2500 A4TT 73480 Silver 2.5-LITRE,TIPTONIC,AWD,MOMO,BILSTEINS 3.5 A201030 2001 Subaru Legacy GT-Turbo 5/SW BH5 2000 A4 139350 Silver Twin-Turbo,AAC,ABS,SRS,MOMO,17"AW,RSP 3.5 A201018 2002 Toyota Altezza Gita AS200Z 5/SW GXE10W 2000 A4 96980 Silver Z-SPEC,17"ALLOYS,BLACK INTERIOR 4 A201004 2001 Toyota Corolla Allex X-G 5/Hbk NZE121 1500 A4 76600 Gold FULL AERO BODYKIT, 16"AW, AAC 4.5 A201019 2004 Toyota Corolla Fielder 1.8S 5/SW ZZE122G 1800 M5 59600 White FACELIFT,BODYKIT,ALLOYS,BLACK INTERIOR A201020 2004 Toyota Corolla Fielder 1.8S 5/SW ZZE122G 1800 A4 110300 Black AERO BODYKIT,ALLOYS,BLACK INTERIOR A201012 2003 Toyota Corolla Runx-X 5/Hbk NZE121 1500 A4 41850 Red FACELIFT,BLACK INTERIOR,AAC,1-OWNER 4 A201023 2001 Toyota Funcargo 1.3X 5/SW NCP20 1300 A4 88500 Red BODYKIT,ALLOYS,SERVICE HISTORY 4 A201017 2002 Toyota Ist 1.5S-L 5/Hbk NCP61 1500 A4 61850 Red 1.5-LITRE,BLACK INTERIOR,ALLOYS,SPOILER 4 A201029 2002 Toyota Spacio 1.8S Aero-T 5/SW ZZE122 1800 A4 63960 White 7-STR,AEROTOURER,BODYKIT,AW,CHARC.INT 3 A201006 2001 Toyota Will-VS Aero 5/Hbk ZZE127 1800 A4 85900 Silver AAC,ABS,ABAGx2,FULL BODYKIT,18"AW 4 A201010 2002 Toyota Windom 3.0G 4/Sdn MCV30 3000 A4 107800 Silver AAC,SIDE-CURTAIN SRS,PWR SEAT,ALLOYS 4

IMVIA would like to acknowledge the generous assistance of services and cash from: AA: entry certification Magnum Compliance (Christchurch) Ports of Auckland: port services Armacup: shipping McCulloughs: freight forwarding and Turners: auctioneers AutoHub: logistics customs brokers Vehicle Safety Systems: compliance Autosure: warranties Nichibo: export agents Vehicle Testing and Compliance (Hamilton) Fastrack: compliance North Shore Compliance VTNZ: entry certification Heiwa: export agents Panorama Auto (Wellington) VINZ: entry certification Kiwi/Hoegh: shipping Penrose Compliance: compliance