THE VEHICLE DEALER’S NEWS SOURCE JANUARY 2020 .CO.NZ In the heart of Hobbiton: Baigent MOTORS p8 - 10 Mechanical Breakdown Insurance Payment Protection Insurance Fuel tax to go Loan Equity Insurance Motor Vehicle Insurance p3-4 www.autosure.co.nz | 0800 267 873 A night at the boom-crash The market leader for over a decade. Shift to the Autohub Team and opera experience the Autohub difference. p14-16 GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE | www.autohub.co NEWSTALK JAPAN VS THE WORLD - WHO IS RIGHT? by Vern Whitehead he start of a new year and a new executive, who recently shared his views Publisher decade makes this time of the year on the future of the global auto industry Tmore interesting than most. with Automotive News Europe. It’s often a time for resolutions and His take? More efficient manufacturing, in demand for battery crystal-ball gazing, but we’re going more autonomous driving systems, and electric vehicles.” to look only at one auto industry pistons - lots and lots of pistons. The CleanTechnica says many will be contradiction - are the Japanese car future of motoring is about efficiency, disappointed by Hachigo’s attitude makers correct in believing the battery Hachigo-san believes, and he sees hybrid “which seems too timid to embrace the electric car is merely a passing fad? powertrains as the route to that efficiency. challenges presented by an overheating It has been obvious for a long time to By 2030 he expects two thirds of his world, particularly since internal industry observers that many Japanese cars to be hybrids. He makes no mention combustion engines are a significant manufacturers have been super slow to of them having plugs. “The objective is join the world shift to EVs. But now the Japanese have dropped all pretence of being impartial in the world of EVs vs ICE (internal combustion engine) power and have come out swinging: • Honda’s CEO sees nothing but piston power from here to eternity. • Mazda goes even further, claiming that long-range EVs are worse for CO2 than diesel cars. • Nissan - with the notable exception of its electric Leaf - and the world’s largest car maker, Toyota, are not too Honda sees hybrids and pistons as its future much different. So who is correct? Do the Japanese OEMs know something that Volkswagen not electrification per se, but improving factor in the rise in global temperatures”. and the European, American and Chinese fuel efficiency,” says Hachigo. “And Soichiro Honda, the man who founded the manufacturers are missing? we believe hybrid vehicles are the company that bears his name, never took way to meet different environmental This is a far from academic question for such a timid approach to the future. He regulations.” Kiwi dealers with our reliance on the propelled Honda on to the world stage with On the subject of battery electric vehicles Japanese auto industry for an on-going a bold gamble on Formula One competition he asks: “Are there really customers who supply of quality used imports. What if in the 1960s, adds CleanTechnica. truly want them? I’m not so sure because there is only ever a limited number of “The history of commerce is littered there are lots of issues regarding used EVs to choose from in Japan? with the carcasses of companies that infrastructure and hardware. I do not But first the arguments fromTakahiro changed the world, and then became believe there will be a dramatic increase Hachigo, Honda Motor Company’s chief resistant to change. Honda may well be the next to join the pantheon of once great companies that are now little more than echoes in the well of history. “If the company is right and piston power is to be the norm for decades to come, the human race will be seeing the face of eternity sooner rather than later and that’s the reality that Hachigo refuses to face,” says CleanTechnica. In the meantime, Mazda sees its all- electric MX-30 crossover - due to be sold in Europe from early this year - as needing only a 35.5kW battery, enough for about 260km of range. The Mazda MX-30, but no more Mazda EVs till 2025 Continued on page 3 2 | AUTOTALK JANUARY 2020 | www.autotalk.co.nz NEWSTALK FUEL TAX SET TO BE SCRAPPED ational's transport spokesperson Transport Minister Phil Twyford says Kiwi technology leaders Chris Bishop collected a few work is already underway on such a shift. One advantage New Zealand has in Nheadlines late last year by "Funding our transport system is a developing and shifting to such a system announcing the government would problem we need to address in the is that we are a technology and shift to a road user charges system for future as people increasingly software leader in the space, with funding transport spending increases - move to electric cars and companies such as EROAD, something that would likely influence not other forms of transport," Teltrac Navman and Coretex only vehicle use, but in some ways the Twyford says. "We know leading global markets for vehicles people buy. that other countries are similar systems in the transport Ditching the fuel tax and introducing grappling with the same and fleet management markets road user charges for all vehicles is the problem and are looking for from their New Zealand-bases. way forward, he says. solutions. EROAD explained to AutoTalk Chris Bishop Motorists pay 66 cents per litre of petrol "That’s why I’ve asked the they are ready to assist, and in tax which goes into the National Land Ministry of Transport to do noted they have consulted to Transport Fund for land transport and some initial work looking at replacing fuel other governments considering such roading projects. excise with GPS-based road user charges shifts. “Fuel use is becoming a poor estimate which would be phased in over the long- Late last year the company spoke to of road use as vehicles become more term," the minister explains. "This work is industry and institutional specialists from modern and fuel-efficient," Bishop says. still at a very early stage and I have yet to over 50 countries about such systems at “The common use of hybrid vehicles by receive any advice on the implementation a convention in Las Vegas. taxi and ride sharing services effectively and design of such a system. "EROAD pioneered regulatory telematics reduces the contribution "I welcome the Opposition’s support through developing a technology platform these drivers make to road on this initiative to help provide that is reliable, accurate and easy to use," investment, while electric certainty to drivers in the long- chief executive Steven Newman says. vehicle users pay no road user term. "Because of this, our global relationships charges at all,” Bishop says. "We are looking to support Kiwis with those researching or trialing road Bishop suggests road user buying vehicles that are better for funding or safety regulations have charges would be phased in over the environment and cheaper to run continued to expand, and we have invested in scalable systems and the “medium-to-long term” with Phil Tywford through our clean car policies. the use of technology. They will result in a wide variety of processes that can deliver holistic The problem for Bishop is that cleaner cars, utes and vans being solutions for any government wanting plans to do just this are already under available and affordable for Kiwi families to achieve a safe, sustainable and way under the auspices of the current and businesses," he says. productive transportation system. government. Continued on page 4 Continued from page 2 There will be a crop of smaller, lower- Japanese car makers or the rest of the Mazda Europe chief Yasuhiro Aoyama range EVs competing against luxury world? told Automotive News Europe: “We brands such as Tesla and Volvo. Can the There is no way to settle the argument based the battery size on the needs of two markets co-exist? other than to let things play out, and let our target customers who are young “We hope so, because small city cars also Adam Smith’s “invisible hand” work its urban buyers. Given the importance need to transition to EVs. And it could help magic. of minimising CO2 penalties, we will bring to the mass market affordable EVs The “invisible hand” is a term coined by start selling it in Europe first. As far as needed for global markets,” Electrek says. Scottish economist Adam Smith in his other countries are concerned (America “Regardless, it is not helpful for Mazda book The Wealth of Nations in 1776. He included) we are still in a study phase.” to make misleading claims about the suggested that if people were allowed to Aoyama says another Mazda EV is not relative environmental benefits of EVs trade freely, self-interested traders would being considered for the next five years. and diesel-powered cars. And it creates compete – leading markets to a positive Electrek says that Europe, where smaller a foul smell around Mazda’s first EV, output aided by an invisible hand. urban subcompacts are more popular, will which otherwise looks like a fun ride.” All the best for an interesting year and be a fascinating litmus test this year. Who is reading the market best? The decade ahead. AUTOTALK JANUARY 2020 | www.autotalk.co.nz | 3 NEWSTALK Continued from page 3 "Without suitable policy action, road "Funding our transport How would it work? congestion is all but certain to intensify. system is a problem Such a system is likely to work in one of Government forecasts also show that two ways.