VOLUME 8 ISSUE 6 JULY 2017 Confidence for the road ahead. Technician shortage hits industry hard shortage of trained technicians is tices being employed by dealerships. Personal mobility’s making life difficult for dealers and “Flowing from that, the natural attrition Aaftermarket repairers alike. up to now has combined with the pro- here to stay - Joyce A Motor Trade Association (MTA) longed bull-run for the industry, resulting survey of members last year found busi- in the current shortage.” o matter what technology nesses couldn’t fill about 1500 vacancies. In terms of his own dealership, Lucas brings, personal mobility is And employers spoken to by AutoTalk says it is possible the high cost of living Nnot going away and the auto- are looking overseas to plug the gaps. and working on Auckland’s North Shore motive trade will have a role to play, Simon Lucas North Shore managing or commuting long distances is putting finance minister Steven Joyce has director Simon Lucas says it’s a trend af- technicians off. told a group of industry leaders. fecting a number of The booming He was speaking at the Imported dealerships. construction indus- Motor Vehicle Industry Association’s “Many dealerships try might also have annual industry dinner. The associa- have been trying soaked up some tion launched its new brand - VIA - to recruit for some of the youngsters on the night. time. In Auckland David Craig Simon Renee wanting to enter a Joyce said the dinner was a “com- we have seen an al- Storey Pomare Lucas Davies trade, he says. ing home” for him, following his time most zero response But with the right as transport minister, and he recalled to local marketing efforts to recruit from a promotion, Lucas reckons more young his experience of being up in court dwindling pool. people could be encouraged to become against the association after the last “We’re looking overseas to recruit technicians. round of emissions rules were set to now. It’s the number one bottleneck in “Certainly our hourly pay rates have hit the trade. most dealerships at the moment.” skyrocketed way above inflation and ad- “I would argue (my time as minis- Lucas says there are several reasons ditional conditions of employment have ter) was one of the best periods for behind the shortage. been enhanced so it is actually a well- transport but that’s just my view,” he “Our take on the technician shortage is paid role now.” joked. that during and post-Global Financial Cri- Some also question the quality of Continued on page 37 sis, the industry was probably hunkered trainees coming out of public training down which resulted in too few appren- institutes. But Lucas doesn’t believe that’s the issue. INSIDE “It’s always been a bit hit-and-miss.” Glittering opening for Botany Mercedes 4 Auto Super Shoppes chairman David Gazely’s keep it in the family 6 Storey says the technician shortage is Fieldays a huge success for distributors 10 getting worse. Technology key in Connected Journeys trial 12 4 10 Continued on page 8 The market leader for over a decade. Shift to the Autohub Team and experience the Autohub difference. GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE | www.autohub.co FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: www.autosure.co.nz WEEKLY PASSENGER & COMMERCIAL VEHICLE AUCTIONS 2 | AUTOTALK JULY 2017 | www.autotalk.co.nz NEWSTALK AutoTalk Magazine and autotalk.co.nz are published Percival keeps steady by Auto Media Group 8/152 Quay Street, Limited. P.O. Box 10 50 10, Auckland City, 1030. Ph. 09 309 2444. hand on UDC tiller GROUP EDITOR AUTO TRADE TITLES DC chief executive by TIP in terms of the new “It’s good to be able to Scott Morgan Wayne Percival will financing and the changes to provide this assurance to 021 240 2402 Ustay at the helm as the debenture programme customers well in advance [email protected] the company’s ownership will be a good fit for the of the planned separation changes from ANZ Bank to New Zealand market and will and transfer of UDC to new MANAGING EDITOR HNA Group. serve customers well as UDC ownership.” Richard Edwards That will provide stability moves forward under new Securing the funding 021 556 655 for the company, which has ownership,” Percival says. marks an important mile- [email protected] also secured a $2.7 billion fi- stone in the separation pro- nance programme to kick in cess from ANZ, Fast says. PUBLISHER after the ownership change Together with UDC being Vern Whitehead takes place later in the year. able to offer competitive 021 831 153 TIP Trailer Services, a lending rates for customers, [email protected] European subsidiary of HNA, the $2.7 billion finance facili- secured the finance arrange- ties leave significant room for ment. Bob Fast Wayne UDC to grow, he says. CHIEF REPORTER Percival Lenders include UDC’s UDC will report to TIP Robert Barry 022 0180 998 current owner, ANZ Bank He worked for UDC from Trailer Services. [email protected] New Zealand, as well as 1993 to 2004 before returning Subject to regulatory ap- Commonwealth Bank of to lead the company in 2015. provals, the sale is expected to Australia, Westpac, Deutsche TIP president and chief be completed late this year. SALES MANAGER Bank AG, a fund managed by executive Bob Fast says he’s Dale Stevenson 021 446 214 Credit Suisse Asset Manage- pleased with the funding ar- [email protected] ment and the NZ Superan- rangement. nuation Fund. “This funding will underpin “UDC believes the ar- UDC’s competitive position OPERATIONS MANAGER rangements being made under our new ownership. Deborah Baxter 027 530 5016 SPECIAL REPORT [email protected] SUBSCRIPTION SPECIALIST Dealers face huge disruptions John Stephens 027 530 5023 e're all well aware cording to experts. moving away from vehicle [email protected] of how disruptions From EVs wiping out ownership altogether, the Wby Uber have af- much of the need for threat to dealers is very real Auto Media Group Limited makes fected the taxi industry, and dealers' service centres, and closer than we once every endeavour to ensure information contained in this publication is accurate, how Air B'nB has had a simi- to direct selling by Tesla thought. however we are not liable for any losses lar disruptive effect on the and others rendering new From the next issue or issues resulting from its use. accommodation industry. vehicle dealers obsolete, of AutoTalk, we will bring Annual subscription: $84 + gst ($96.60) But these disruptions the list goes on and on. readers, in association with Printed by: Alpine Printers. pale into insignificance with With autonomous ve- VIA, a five-part investiga- what is now facing dealers hicles (no drivers needed), tion into Disruptions facing and the auto industry, ac- and young urban dwellers Dealers. Don't miss it. autotalk.co.nz autotalk.com.au dieseltalk.co.nz INDUSTRY SUPPORTERS RECOGNISED BY dieseltalk.com.au evtalk.co.nz evtalk.com.au wheeltalk.co.nz identicar.co.nz AUTOTALK JULY 2017 | www.autotalk.co.nz | 3 NEWSTALK Successful start for Mercedes-Benz Botany ew Zealand’s larg- the others located in Dun- and running. est Mercedes-Benz edin and Christchurch. Mercedes-Benz Australia- Ndealership has started He says he is thrilled with Pacific dealer development impressively, sell- the new site, director Andrew Cutter is ing 60 cars in its which features a predicting big success for the first month. 700 square metre site on Ti Rakau Drive, one of Armstrong Mo- showroom. the country’s busiest roads. tor Group manag- “Every time I “In Botany this is a grow- ing director Rick come here, it ing area and in the future it Armstrong made puts a big smile will continue to grow. the announce- on my face.” “It will be the benchmark ment at the of- Armstrong also in this strip here. It will bring ficial opening of Rick Armstrong thanked Botany more businesses into the Mercedes-Benz Mercedes-Benz area and create jobs.” Botany in East Auckland. dealer principal Jeremy Mercedes-Benz identified “I never thought that Spicer and Mark Darrow, it as a growth area for the would ever happen,” he says. who managed the dealer- brand three years ago. It is Armstrong’s third ship building project, for A new Hyundai dealership Mercedes dealership, with their effort in getting it up will share the 1.1 hectare site when it opens in July. Armstrong Group stocks 19 brands across 13 sites around New Zealand. an independent choice Quest Insurance offers: Mechanical Breakdown Insurance – backed by AA Roadside Assist Comprehensive Motor Vehicle Insurance – including learner and restricted license cover Guaranteed Asset Protection Lifestyle Protection Insurance If you are a forward thinking motor vehicle trader, or financier, looking for a trusted vehicle insurance partner, call Quest. 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