www.autofile.co.nz OCTOBER 2019 THE TRUSTED VOICE OF THE AUTO INDUSTRY FOR MORE THAN 30 YEARS $ Cost of policies Specialised to car industry training that’s 1.3b proven to increase profits Stella Stocks on 20 years with AA Utes may cost between $8,000 and $10,000 more under Julie Anne Genter’s proposals p 10 The Motor Industry Association has calculated a fuel-economy Monterey Car Week standard will lead to ‘massive market distortions’ and sales drops highlights overnment proposals to believes, that it should be canned – will add between $8,000 and penalise cars imported in its current form while the $10,000 to the sticker prices of utes. into this country based on government develops one in The MIA describes the weight- p 16 theirG fuel efficiency could cost the consultation with the industry, banded approach as “unworkable, new-vehicle industry upwards of along the lines of a system used in unfair and poorly constructed”, $1.3 billion. Europe – if one is needed at all. adding this is “the most Warning issued over That’s one of the price bills that David Crawford, chief executive challenging to resolve”. stink bugs the Motor Industry Association officer of the MIA, warns Genter’s Crawford believes the policies (MIA) has calculated the clean car proposals will create “massive put forward by Genter would standard will come in at, as one market distortions leading to drops simply amount to a tax on vehicles of two clean car policies tabled in sales”. He adds distributors may without achieving anywhere near p 23 by Julie Anne Genter, Associate even withdraw certain models, the reduction in greenhouse gas Minister for Transport. including small cars, from New (GHG) emissions being targeted. p 26 The MIA is among industry Zealand, while one marque may The MIA, along with organisations critical of the supply- have to pull out altogether. representatives of VIA (the Imported side mechanism, and its concerns And the structure of the Motor Vehicle Industry Association), centre on the modelling and costs. standard – with eight weight the Motor Trade Association (MTA) Profile on The proposed fuel-economy bandings, and lumping light and AA, met with Genter and Chris Knight standard is so bad, the association commercials with cars and SUVs Ministry of Transport (MoT) officials [continued on page 4] GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE Tel: +64 9 825 0888 www.jacanna.co.nz Call Steve Owens now on 021 947 752 GUEST EDITORIAL Policies will affect DIRECTORS Brian McCutcheon EDITOR how dealers work [email protected] Darren Risby ph. 021 455 775 [email protected] The Motor Trade Association is calling for clean Darren Wiltshire JOURNALISTS car proposals to be carefully implemented [email protected] Sue Brebner-Fox ph. 021 0284 7428 [email protected] Lucy Pink he MTA has consumer information DESIGNER [email protected] voiced similar notice (CIN) and proof of Adrian Payne concerns to registration. [email protected] MOTORSPORT Mark Baker Tthose raised by MIA, VIA, This is in addition to [email protected] and AA on the clean car the trader displaying a proposals, and has been new CIN showing the Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. part of the industry- car’s CO2 profile, import Back copies are also available on the website. government conversation. duty or credit accrued GREIG EPPS Copyright: Published monthly by 4Media Ltd, The immediate debate Advocacy and strategy when imported, and PO Box 6222, Dunedin 9059. manager, MTA has centred on calculating the fee or rebate the All statements made, although based on information believed to be CO2-emissions standards for customer faces. accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in new and used imports, but the The MTA has previously called print or digital format in whole or part without written permission, proposed clean car standard asks for the vehicle fuel-efficiency label whether by copying or any other means, is strictly forbidden. for too much too soon. The MTA to be folded into a revised CIN All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online) has also urged the proposed and we’ll continue to push for a exemption for private imports be reduction in the amount of window dropped – climate change will furniture traders must display. affect us all, so no one should be It is possible that, differing from able to skirt future rules. current rules, revised CINs would But what about car yards? We’re need to be displayed on new cars Vehicle Inspection NZ keeping effects on traders front so consumers get all relevant and centre with officials. There emissions and feebate information will be a range of new compliance on a single, uniform template. requirements, and dealers will need The CIN will show the offer Entry Certification adequate time and information to price, along with the consumer’s prepare. rebate or fee and import penalty specialists The most obvious impact or credit. How will such disclosure comes from the clean car discount, affect traders when negotiating or “feebate”, which will be with clients who take in a trade or administered at first registration cash to the transaction? of the vehicle after the importer There are many unanswered has paid a penalty or received a questions about how consumers credit for its CO2-emissions profile, might use the rebate. Will it be assessed at entry. available to traders as a deposit? Registered traders will be Will finance companies agree responsible for paying any fee to to cover the fee? Will finance the administrator, possibly the providers require the rebate to be NZTA, and customers will have to used to reduce the loan amount? apply for rebates. Will it even incentivise a change in Even in this basic situation, behaviour? dealers will need to know the And we haven’t even touched on level of fees or rebates due, how educating consumers and traders, • Entry Certification for imported cars • Vehicle Appraisals • Pre-Purchase Inspections • WoF • CoF • Road User Charges and when to pay, where buyers and regulatory enforcement. The • Registration & relicencing • Exhaust emission testing must go to claim rebates, and devil will be in the details and the what information customers MTA will seek to exorcise irrelevant will need to provide, such as the compliance requirements from any 0800 GO VINZ VINZ.CO.NZ Tel: +64 9 825 0888 vehicle offer and sale agreement, final scheme. www.jacanna.co.nz www.autofile.co.nz 3 news [continued from page 1] in Wellington on September 19 after Jargon-buster of high-emitters. It’s also known lodging formal submissions as part as the fuel-economy standard. It’s of the consultation process. Julie Anne Genter, Associate what the automotive industry is They also made their views Minister for Transport, unveiled basically up in arms about. known before the meeting in a joint her clean car policies on July 9. In Then there is the clean car letter, which called for an industry essence, they form a two-pronged discount on the demand side. working group to be set up to work attack to reduce CO2 emissions It’s known better as a feebate with the government on proposals from our light-vehicle fleet. scheme. Consumers would pay that will succeed in New Zealand. On the supply side, there’s fees on high-emitting vehicles It was hoped in some quarters the clean car standard. It aims when first registered in New that Genter would agree for the to limit what vehicles cross the Zealand – or get discounts on proposed schemes to be restarted border by penalising importers greener models. effective than those on the supply from scratch. side that aim to limit what models Instead, “workshops” have been The MIA has shared its modelling, which divides the light are imported in the first place. taking place to provide clarity, to modelling for the fuel-economy fleet into eight weight bands. “The clean car standard in the discuss and refine proposed policy standard with the minister, These scenarios are: discussion document is unworkable points on the clean car standard other political parties and The level of accumulated fees in its entirety and the MIA doesn’t and clean car discount. trade associations “to facilitate based on the proposals would support it,” says Crawford. The latter, also known as a discussion focused on facts, not be about $1.3b. That’s the He adds issues with the fuel- feebate scheme, would see buyers opinions” based on its projected net effect of the credits and economy standard, as it stands, of high-emitting vehicles penalised fiscal impacts. penalties if carbon-dioxide include the timeline being short at the point of first registration in Essentially, the standard would (CO2) reductions track at and needing to be extended to New Zealand. reward importers of low-emitting business-as-usual rates. cover two new-vehicle model cycles There is some support in the vehicles and charge high-emitters That figure would drop to about – that’s to say, set out to 2030. automotive industry for such when they cross the border. $667 million if the automotive Crawford describes the target demand-side action to reduce The MIA has examined several industry can achieve best-rate rate at “far too ambitious” because emissions from the light-vehicle fleet, scenarios using a 2019 sales- CO2 reductions. no country has achieved anywhere but the clean car standard has been weighted annual market profile near the rate of CO2 reduction given an unequivocal thumbs-down.