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Issue 1-2016 14 January 2016
Squeeze on car dealers fuels decrease in prices M argins in the automotive industry have become tighter making business even more competitive, according to KPMG. The company says the effects of this are being felt across the market – from sales of new and used cars, to finance, insurance and leasing – with the main winner being the consumer. Its latest non-bank financial institutions performance survey reports that motor-vehicle traders and lenders are operating under increasing pressures. John Kensington, KPMG’s
head of financial services, says its survey of 23 companies highlights dealers’ overall margins as being eroded by high sales targets set by manufacturers and “the need to cut margins to get the last few sales away”. They also report marques are placing “very high expectations on brand retailers” and “setting high targets before any rebates can be achieved”. Kensington says the flow-on effects include dealerships being forced to pre-register units, and build inventory funded by banks and non-bank lenders.
But, at the same time, dealers’ profits have become “depressed when target vehicles must be sold”. “Dealers are starting to see low margins become even lower,” says Kensington. “This increased need to sell vehicles to get rebates is also driving down the price of second-hand vehicles. “As a result, finance income, insurance, warranties and servicing play increasing roles in their overall margins. “Anecdotally, we’ve also heard that although the number of vehicles registered has increased, a large proportion
In this issue p7 Industry records smashed p9 Honoured on new year list p10 Los Angeles Auto Show p12 Profile on Euan Philpot p16 Future transport debate p26 Used imports hit 100k
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Rise in fair-trading complaints
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omplaints lodged with the Commerce Commission have jumped since reforms to laws have been introduced with the motor-vehicle industry in the top three for most criticised about the Fair Trading Act (FTA). It received 4,377 representations about the act concerning 1,860 businesses with 25 per cent relating to 24 traders, according to its
Consumer Issues 2015 report. Online trading generated 33 per cent of all complaints lodged despite accounting for only a small percentage of sales with its total twice those generated by buyers visiting business outlets. The three industries attracting the most complaints were telecommunication service providers, and suppliers of domestic appliances,
electronics and phones – both on 10 per cent – followed by car dealers with six per cent. Legislative changes that came into effect in June 2014 included online businesses having to declare they are “in trade” to ensure buyers are aware of their rights under the Consumer Guarantees Act (CGA) and FTA. Retailers have to now compare
Sport mode boosts response
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Call Steve Owens now on 021 947 752
Controversies set to rumble on
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ast year was eventful for the industry with the Volkswagen Group’s admission to rigging emissions tests topping the scandals ladder. News the company installed defeat devices in about 11 million diesel engines broke in September. It now faces regulators’ wrath as it tries to cope with the problems, which will dominate 2016’s headlines. The fiasco meant chief executive Martin Winterkorn lost his job, while settlement costs are expected to run into tens of billions of dollars. The massive dent to VW’s reputation hints at what’s likely to be its biggest long-term issue – a tarnished image in the minds of consumers – while its previously stated bid to sell more than 10 million cars globally a year is in tatters. And while rivals are increasing their investment in autonomous driving and other technologies, VW is cutting capital spending by about NZ$1.6 billion per annum with aftershocks to include its admission of fudging fuel-economy figures. The emissions debacle wasn’t the only cock-up of 2015 with Sergio Marchionne creating a storm. The boss of Fiat Chrysler Automobiles (FCA) published a report in April that covered low returns on capital invested in the industry. His solution was joint production of some components, such as four-cylinder engines, and – more controversially – mergers. Marchionne wanted FCA and General Motors to join forces. The latter knocked him back and it seemed possible he might attempt a takeover. However, in early December, he said: “At the moment, we have no intention to do anything hostile.” The saga must rank as the oddest corporate marriage proposal ever. It wasn’t made in hush-hush meetings at hotels or through late-night phone calls. It came via an unanswered email
sent to Mary Barra, GM’s chief. The offer sparked a media frenzy. More than anything else, it highlighted FCA’s bottom-line challenges. GM went on to rack up big profits. Japanese company Takata continued to struggle to fix its defective airbags in 2015 as the crisis became more complex. Its airbag propellant can burst its casing and spray vehicle occupants with shrapnel. Nine deaths have been attributed to the problem. Technically, the fix is relatively inexpensive, but replacements must be customised for different cars. In addition, the scale of recalls means some may not be fixed for several years. They will be further complicated should Takata go bust while several brands have vowed to stop using its airbags. What of the 12 months ahead? For years, marques have described their vehicles as “smartphones on wheels”, while makers of these communication devices appear to concur. However, last year it surfaced Apple had a team of hundreds working on an electric vehicle codenamed Project Titan, while Google hired John Krafcik – Hyundai Motors America’s ex-chief executive officer – to steer its selfdriving car programme. The move to autonomous vehicles is gaining traction. Fears about tech companies grabbing the initiative and the global stage the Olympic Games will offer in 2020 are driving Japan’s top three marques to introduce them sooner rather than later. Honda, Nissan and Toyota used November’s Tokyo Motor Show to announce they will sell driverless cars in four years’ time with the Olympics also providing a chance to show off Japanese technology to a worldwide audience. Darren Risby, editor
Editor
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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. Back copies are also available on the website. Copyright: Published twice monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without written permission, whether by copying or any other means, is strictly forbidden. All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online)
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news [continued from page 1]
Market facing extra competition of this increase has been to the rental market where margins are traditionally low.” The survey also shows companies that make and finance their own products have competitive advantages. “Maintaining and strengthening customer relationships has become a crucial factor in that entities acting as one supplier – instead of several – can be positioned to provide not just a product, but a total business solution,” says Kensington. “They are assessing the profitability and performance of operating and financing entities collectively under a joint strategy with less concern for apportioning profit margins between the operating and finance arm.” Finance companies associated with and supporting particular brands, such as car manufacturers, “have their own
opportunities and challenges”. “Their competitive advantage lies in being associated with a wellknown brand and ongoing business from their retailers, or in the way they can assist make a sale.” However, some appear to be experiencing restrictions on deals they are allowed to do, which mainly stem from risk. “New-found caution is taken to ensure customers are not only sold the right products, but treating them fairly has become important due to the risk of misselling products and inappropriate culture around sales.” One of the big stories of the past year has been peer-to-peer (P2P) lenders – Harmoney, Squirrel Money, LendMe and LendingCrowd – coming to the fore. “New Zealand now has four P2P lenders licensed to operate in the market – they
have definitely arrived,” says Kensington. “Executives we surveyed agree they are the biggest disruptor in the consumer market.” Finance providers in the automotive sector are also facing increased competition with new players seeking to gain market share. Two entrants referred to frequently in KPMG’s survey are Nissan Financial Services and Branded Financial Services, which is headed by executive chairman Neville Crichton. In addition, the survey shows providers of automotive finance continue to show good improvements in impairment asset expenses. Three out of the six vehicle financing companies reduced their impairment charges with a combined $2.95m decrease in the year ending September 30, 2015.
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Nissan Financial Services, which was established in April 2013, was included in KPMG’s survey for the first time. It has gained a 1.19 per cent share of the non-bank lending market and is building its loan book through dealership sales. Toyota Finance experienced a decline in profits of 55.47 per cent in 2015, but much of this was due to an unfavourable fair-value movement of $13.38m from changes in interest rates. The survey of 23 lenders shows they achieved combined net profits after tax of $254.62m in the 12 months to September 30, which was down by $18.2m – or by 6.67 per cent – compared to 2013/14. Although there were strong increases in interest and other income, this was more than offset by a jump in operating expenses of $48.49m.
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Kensington describes this as a solid outcome taking into account challenging conditions. “This performance is remarkable considering the current low interest-rate environment, and intense competition from existing market players, new entrants, banks and P2P lenders.” Another big theme for the year was the level of sales and acquisitions, such as GE Capital agreeing sell its New Zealand consumer and commercial financing businesses. Kensington says: “A number of executives believe this disruption will create significant opportunities in the sector, given some long-term relationships in businesses have come – or are coming – to an end.” He adds Motor Trade Finances continues to be attractive to parties wanting to acquire a stake in or buy the company with approaches from Heartland NZ and Turners Ltd.
Non-banking sector - movement in net profits after tax $MILLION 350 300 250 200 150 100 50 0 2014 NET NON- OPERATING NET PROFIT INTEREST INTEREST EXPENSES AFTER TAX INCOME INCOME
IMPAIRED TAX ASSET EXPENSE EXPENSE
2015 NET PROFIT AFTER TAX
*Source: KPMG’s non-bank financial institutions performance survey 2015
DEALING WITH LEGISLATION KPMG says regulations are now embedded in non-bank lenders’ culture. The sector has incurred extra costs based around compliance with regulations, such as amendments to the Credit Contracts and Consumer Finance
Act (CCCFA) and improving frontend technology. Although compliance is costly and impacts on resources, Kensington says it was generally perceived more positively in 2015 by helping to strengthen the sector and creating “some form of barrier to entry”.
KPMG’s report flags up the responsible lending code, which puts the onus on finance providers to determine the appropriateness of lending based on various factors, such as the borrower’s ability to repay and product suitability. “Some feedback was the code really only makes lenders document why they are responsible and doesn’t reach the right people in that it has had little impact on pay-day, car-boot and truck-shop lenders. “Another comment was it seems to help regulate people who need to help themselves. In other words, it’s perceived as regulation looking to have finance companies ‘save’ borrowers from themselves.” Changes to the CCCFA, which came into effect in June 2015, are back in the spotlight with the Commerce Commission considering whether P2P loan charges are covered by the legislation’s fee provisions. [continued on page 6]
‘Major disrupter’ in industry
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eer-to-peer (P2P) lenders are looking at opportunities in the small to medium-enterprise market to grow their market share. KPMG’s performance survey of non-bank financial institutions highlights this sector as “the major disrupter” in the consumerlending market. With P2P companies planning to venture into other sectors – such as vehicle finance – competition will not ease in coming years, warns John Kensington, of KPMG. The impact isn’t from the amount lent – reported to be about $150 million – but more from efficient and sharp distribution models, and providing another option for borrowers. P2P lenders are also maximising online platforms to try to cut borrowing costs, obtain national reach and increase speed of delivery, says Kensington. “Many participants in our survey feel it is becoming critical to better utilise technology to
remain competitive in the nonbank sector,” he adds. “While the front offices of P2P lenders appear to be technologically impressive, there remain questions as to how mature their back-office functions are.” Concerns around these companies have been voiced by executives surveyed by KPMG. They include perceived limited regulatory oversight with them not being subject to responsible lending guidelines, and reduced visibility of potential losses because asset books and performances aren’t reported in the traditional way with a set of financial statements. Many surveyed also feel PSP lenders and their strengths will not be tested until they have been through a full economic cycle. However, lessons have been learnt overseas with UK-based Quakle going under in 2011 and some P2P websites in China closing with borrowers defaulting. Kensington adds: “This is an interesting development.”
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news [continued from page 5]
Increase in confidence reported These permit fees that only recover the cost of the services they relate to with the expectation lenders should earn returns from interest rates. “There is uncertainty as to whether P2P fees are caught by the CCCFA. A ruling in this area could have a material impact on this sub-sector’s growth.”
LENDERS’ FINANCIAL RESULTS While the non-banking sector experienced a 6.67 per cent drop in net profits to $254.62m in 2015, companies’ performances have been mixed with the bottom lines of half of those surveyed by KPMG improving. Declines in profitability were led by Toyota Finance, Fuji Xerox, and GE Capital with drops of 55.47, 73.3 and 9.95 per cent respectively for a combined decrease of $33.66m. Margin pressures were felt by 14 out of the 23 companies despite most growing their revenues by 6.07 per cent, or by $98.08m, in 2015. Statistics in the main income categories include net interest income jumping by $23.36m despite interest margins decreasing by 32 base points with balancesheet growth being the driver. Other increases were reported in non-interest income by $10.26m, asset-impairment expenses by $2.3m and operating expenses by $48.49m. Deposit takers had a good year with an overall reduction of $1.74m in asset-impairment expenses. The largest were reported by Fisher & Paykel Finance of $4.95m followed by Mercedes-Benz
“Comments suggest improvements stem from strong vehicle residual values and better quality borrowers in the new-car market.” - John Kensington, KPMG
Financial Services with $2.27m. As far as improvements, BMW Financial Services led the way with a $1.84m reduction followed by UDC Finance on $1.31m. Three of the six motor-vehicle financiers reduced their impairment charges by $2.95m – more than one-third of the total decrease. “Comments suggest improvements stem from strong vehicle residual values and better quality borrowers in the new-car market where they operate,” says Kensington. The non-banking sector continues to achieve good growth with total assets up by 4.32 per cent to $11.78 billion underpinned by more loans and advances. Latest Reserve Bank data shows expansion in such lending for two consecutive years with loans topping $10.98b by September last year – up from $10.52b in the previous reporting period. Nissan Financial Services recorded a 150.28 per cent increase, while Avanti Finance
Companies in survey Familiar names in the automotive industry, which took part in KPMG’s non-bank sector survey, included Avanti Finance, Instant Finance, GE Capital, MTF, Orix NZ, UDC Finance, and the financialservices divisions of BMW, John Deere, Mercedes-Benz, Nissan and Toyota. Others were Credit Union Bayside and South, First Credit Union, First Mortgage Trust, Fisher & Paykel Finance, Fuji Xerox, Medical Securities, Nelson Building Society, the Police & Families Credit Union, Ricoh NZ, The Warehouse and Wairarapa Building Society.
achieved 43.86 per cent growth. “Ongoing expansion in loan books coincides with a general sense of optimism from the sector and clients,” KPMG’s report states. “This is confirmed by recent increases in business and consumer confidence with firms’
expectations of their own activity, profits, investment intentions, employment, export and residential investments on the rise. “It continues to be reflective of a domestic economy performing comparatively well compared to uncertainties in global economies.” Strengthening competition and new entrants led to marginal loss in market share of gross loans and advances for the three largest entities with GE Capital’s, UDC Finance’s and Toyota Finance’s declining by 1.42, 0.8 and 0.97 per cent respectively. The combined market share of gross loans and advances for those three companies fell from 55.37 to 52.17 per cent of the total group surveyed. “Most other participants maintained their market share at broadly consistent levels. “In an industry that continues to present good growth opportunities, the risk of margin pressure and overcrowding poses concerns. “All participants commented on the importance of positioning themselves in their area of expertise to stay ahead of the competition.” There was less direct competition in 2015 from banks, which have instead tended to fund non-bank entities with extra facilities or the securitisation of vehicles. Consumer and business confidence has driven a buoyant market in personal loans and lending to small to mediumsized enterprises. Overall, the non-banking sector is optimistic about opportunities in 2015/16.
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Records tumble as ute secures crown
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he amount of new than this time last year. However, vehicles sold in New I still believe we’re going to see Zealand during 2015 set historically high levels of new a new record with registrations vehicles sold.” soaring through the 130,000-unit One of the industry’s gamemilestone for the first time. changers moving ahead is likely to Last year was also groundbe technological developments. breaking because it resulted in a Crawford says: “Cars are ute – Ford’s Ranger – becoming changing inside as much as on the the country’s most popular model. outside. They are becoming much According to statistics more intelligent and smarter. published by the Motor Industry “The sorts of technologies Association (MIA), which can differ we were seeing only a few years slightly to the NZTA’s, there were ago in expensive or top-of-the134,041 new vehicles registered range vehicles are now available during the year. throughout line-ups. This represented an “This means increase of 6,862 – or emergency braking 5.4 per cent – compared and all of what I call to 2014, reports David co-operative intelligent Crawford, chief executive transport-type systems officer of the MIA. are starting to come Cars notched up through. David Crawford a 4.9 per increase to “Cars are becoming 94,964 units, while a sophisticated bits of record was set for commercials machinery right across the fleet with their sales climbing by 6.6 and that’s good because if we per cent to 39,077. can avoid accidents happening, SUVs continued to be popular it will create a safer place for us.” with Kiwis by accounting for Back to 2015’s statistics and 34 per cent of the market with Toyota topped the marques ladder 45,376 sold during 2015. for the 29th consecutive year with “In the past five years, SUVs 26,330 registrations for a market have grown by about 15 per share of about 20 per cent. cent and we are seeing the small Holden came second and Ford vehicle market, which was second was third – both on 10 per cent. historically, reduced by about six They were followed by Mazda per cent,” says Crawford. and Hyundai. “Utility vehicles are growing Mercedes-Benz wrestled the by five per cent, so that’s now number-one spot for luxury the second-largest segment.” marques from BMW in the battle He adds the breadth of models of the German brands. It secured with increased performance and the title by 143 registrations in a comfort features – combined close-fought race. with competitive prices and a Autofile’s extensive coverage high level of choice – makes New of 2015’s industry statistics starts Zealand one of the world’s most on page 22. Among the other competitive markets. highlights were imports of used “From an industry perspective, cars coming in at 150,862 units – we think 2015 was a great year. 13,224 more than in 2014. We’re not quite certain how it’s We also have the views of going to pan out in 2016, but it’s Corey Holter, of Ford NZ, Mazda’s unlikely we will see another record. Andrew Clearwater, Toyota NZ’s “The economic conditions Steve Prangnell and numerous going forward are less favourable car dealers.
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news [continued from page 1]
Legislative changes being felt benefits of extended warranties with protections customers have under the CGA, and consumers have cancellation rights when buying products or services via telemarketing or door-to-door sales methods. Businesses must be able to substantiate product and service claims, while provisions banning unfair terms in standard contracts came into effect in March 2015. The commission says it has Mark Berry, chairman of the already received complaints in Commerce Commission these areas, particularly about attracting the second-highest whether online sellers are in trade the report states. “However, we amount, while loans for vehicles and substantiation of claims. anticipate an increase in consumer accounted for 30 per cent. Representations about motorcredit-related complaints.” However, grievances filed vehicle retailing and sales climbed Issues with the most impact relating to this legislation have from 170 in 2013 to 242 in the have included finance providers halved since 2009. following year – or by 42 per cent charging unreasonable fees. The CCCFA has also been – with a general increase from midA ruling by the supreme court overhauled with many amendments June 2014 onwards. is expected soon in the MTF/ coming into force in June last year. Those concerning individual Sportzone case, and “is expected Key changes include lender traders accounted for 129 and to provide guidance on which responsibility principles supported consumer information notices were lender costs can be recovered from mentioned in 105. The misuse of the by a lending code, new rules consumers as credit and other fees”. about repossessing consumer term “as is, where is” by car dealers The report adds: “Complaints to goods and amendments to some has been highlighted. the commission about non-bank disclosure rules. Online trading now generates lenders due to their practices shows “At this early stage, it is uncertain about one-third of FTA complaints a disproportionate level compared how these changes are going and 26 per cent related to goods to their market share. to influence trader compliance,” supplied – such as quality or “Failure by lenders to make full advertised specifications – and disclosure makes this the most 24 per cent were for price, such as complained about credit-related increases before discounts. behaviour.” Twenty per cent were linked The report has been based to providing online services and on analysing information from Consumers have complained the most nine per cent were about supply, the commission’s sources about being misled in breach of the Fair with non-delivery and delivery including its own data, and that Trading Act through the internet, which timeframes being examples. accounts for 1,477 complaints – or 33 per cent from other government and The commission’s report community agencies. of the total – in regards to this legislation. also details Credit Contracts “It is designed to provide Contract terms, conditions and invoices make up 28 per cent, while complaints and Consumer Finance Act a picture of issues concerning filed after buyers have visited (CCCFA) complaints. consumers in New Zealand,” business premises come in Most related to finance says Mark Berry, chairman of the at 14 per cent. companies with mobile traders commission.
Fair-trading concerns
“We have used the report to inform our business planning, which identified a number of key priority areas. “Like all regulators, we don’t have unlimited resources, so we must focus efforts where we can have maximum impact. “By identifying areas of greatest risk, we can prioritise and target resources to greater effect by taking cases likely to have the greatest impact for consumers and more meaning for businesses. “Planning is under way for the 2016 report and it will continue to be used to inform our work programme.” Paul Goldsmith, Minster of Commerce and Consumer Affairs, adds: “I’m pleased to see this comprehensive analysis from the commission, which helps to inform and prioritise its work. “The government has implemented reforms to address many practices the commission identified as causing harm in 2014. “Thanks to recent changes to the CCCFA, the commission has the tools to scrutinise this industry and mandate to take action against operators flouting the law. “It will actively enforce the new laws to improve the conduct of finance companies and mobile traders, which were the source of most credit-related complaints. “Another trend is the increase in complaints about online trading. It’s good to see the results of changes to consumer laws filtering through. “I am encouraged to see the work the commission is doing to analyse issues affecting consumers and how it’s enforcing legislation.”
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Stepping forward for recognition P
eople with connections to the motor-vehicle industry have been recognised in the New Year Honours List. Among them is Paula Rebstock, chairwoman of ACC, who has been made a Dame of the New Zealand Order of Merit (NZM) for services to the state. She has overseen a decline in levies to their lowest levels ever, although the corporation attracted widespread criticism in 2015 for bungling its vehicle riskrating system, which is now being reviewed. The 52-year-old has held positions on a dozen or more boards, commissions and inquiries, and is also deputy chairwoman of KiwiRail and a director of Auckland Transport. Born in the US, Rebstock has lived in New Zealand since 1987. In 1998, she joined the Commerce Commission and was its
chairwoman from 2003been made a CNZM for 09. It was during this services to business and time she was made a philanthropy. CNZM for public service. Liddell, who lives Entrepreneur John in New York, has also Lee has been made a been chief executive CNZM for services to officer of Carter Holt business and tourism. Harvey and is currently He turned his Mount Dame Paula Rebstock chairman of Xero. Cardrona station into In New Zealand, he is successful businesses, such as an chairman of the Next Foundation, alpine resort and ski-field. director of Project Janszoon to Lee also established the restore Abel Tasman Park’s ecology, Southern Hemisphere Proving and former chairman of Project Ground in 1984 for car and tyre Crimson, a partnership to save manufacturers to test products on pohutukawa. snow and ice. He was managing Geoff Dangerfield, who recently director until 2004. retired as chief executive of the Located on the Pisa Range NZTA, has been awarded the Queen’s between Queenstown and Service Order for services to the state. Wanaka, the facility covers 400 He was appointed as the agency’s hectares and boasts 16 facilities. first leader in August 2008 after Transit Christopher Liddell, former NZ and Land Transport NZ merged. vice-chairman and chief financial Dangerfield also chaired the officer of General Motors, has Road Safety Trust from 2011-12 and
has served on Auckland Transport’s board. He was chief executive of the Ministry of Economic Development from 2001-08. Jim Barker, chairman of the Barker Group, has been made an ONZM for services to the transport industry and philanthropy. He established Otorohanga Transport in 1963 and his group is now one of the country’s biggest locally owned freight companies. Barker backed iShift transmissions being installed in trucks imported into New Zealand, which have contributed to safer and more fuel-efficient fleet. His company has supported Kiwis in need, such as by transporting mining equipment following the Pike River mining tragedy and emergency supplies after Canterbury’s earthquakes. Visit www.autofile.co.nz for more information on recipients’ citations.
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close to the CX-9’s Kiwi launch later this year. The 2017 Fiat 124 Spider, which also made its debut in the City of Angels, pays homage to the original model of about 50 years ago. Its suspension uses a doublewishbone layout in the front and a multi-link in the rear for greater stability while braking and turning. Steering is responsive thanks to electric power assist. Noise vibration and harshness enhancements include an acoustic front windshield and insulation treatments, while the soft top is easy to operate and requires minimal force. The Spider’s features include adaptive front headlamps, blind-spot monitoring and rear cross-path detection, while its high-strength body helps dissipate energy while optimising occupant protection. Other technology includes Fiat’s Connect 7.0 system with a seveninch touchscreen display, multimedia control, Bluetooth, heated seats, and keyless entry and start. Modern interpretation of styling cues includes its low-slung presence, well-balanced proportions and a sporty cabin-to-hood ratio. It will be available in two trim levels – Classica and Lusso – and comes in six exterior colours. It’s slated to be launched in New Zealand in late 2016. Alfa Romeo’s line-up included
its all-new Giulia Quadrifoglio. With muscular proportions and high-quality surface finishes across its wheelbase, it offers best-in-class aerodynamics. The Ferrari-derived 376kW bi-turbo V6 engine makes it the marque’s most powerful production car ever. It accelerates to 100kph in 3.8 seconds and has a top speed of 307kph, while cylinder deactivation reduces real-world fuel consumption by up to 15 per cent. The Quadrifoglio boasts nearperfect 50:50 weight distribution, segment-leading torsional rigidity and the most direct steering available thanks to its rearwheel-drive architecture with lightweight materials. Systems include Alfa DNA Pro selector, torque vectoring, active aero front splitter and chassis domain control. Two special-edition Jeeps were launched in Los Angeles. The Wrangler Backcountry features decals on the front fender and rear-quarter panel, off-road front and rear bumpers, and 17-inch Rubicon wheels in mid-gloss black. Rubicon rock rails are standard with Sahara side steps available at no extra charge. The inside features a vinyl-wrapped console lid and door armrests with diesel-grey stitching, black McKinley leatherseat bolsters with sport mesh inserts and all-weather slush mats. The Grand Cherokee SRT Night has a premium appearance, which includes a gloss-black roof, front-grille bezels, side-window surrounds, rear spoiler and lightweight wheels. The 6.4-litre V8 with fuel-saver technology delivers 344kW of power and 624Nm of torque. It can get to 100kph in 4.9 seconds and has a top speed of 257kph. Visit www.autofile.co.nz for more news from the show.
Now is the time to plan ahead A
new year is always a time for reflection on the past year and what lessons have been learnt along the way. Unfortunately, many of us – despite how much we want to improve on the previous year’s results – do nothing about it or make plans to be more successful. It’s like the old adage, “if you always do what you’ve always done, you’ll always get what you’ve always got”. The reality is with how consumers are continuing to evolve, dealerships need to as well – otherwise the likelihood of getting left behind is very real. As we all know, more than 80 per cent of car buyers browse the internet when planning their next car purchase. The National Automobile Dealers Association in the US released statistics in 2015 that highlight buyers are only visiting 1.2 dealerships on average before making their decision.
This shines the to, only then can you spotlight on how methodically work important your online through a plan of all business, presence on the steps needed to be the internet and phone taken to get there. strategy become. You need to leverage That said, more than off data you have about 50 per cent of buyers your business, and make now prefer to engage informed decisions that MARK GREENFIELD Motorcentral electronically by email, can have a significant text and social media as opposed impact on your customers, staff to talking on the phone. and bottom line. What all of this means is that Here are a few key areas dealers being proactive in the space of should check off as they enter 2016. customer experience is paramount, CUSTOMER EXPERIENCE and you can no longer sit back and Create an environment that’s deliver service in a reactive way. attractive, engaging and defines A proactive dealer will attract, what you have to offer. Better engage and retain more buyers still, doing this right is a positive than the one who sits on his or her contributor towards referrals to hands doing what he or she has friends and family. always done. Managers need get out of their Now is the time to plan for what offices and meet customers. Don’t you want to achieve – not only for just leave it up to salespeople to 2016, but also the next few years. bring them to you to help with the Once you establish where close. A friendly hello while walking you want to get your dealership
Car dealerships’ systems should be “true enablers” that compliment all aspects of the business
past will work wonders when the time comes to make the sale work.
RETENTION OF BUYERS You have spent a significant amount of money acquiring each customer. Now you seriously need to invest and plan for how to keep in contact with them and retain them.
MAKE INFORMED DECISIONS Whether it’s what vehicles are purchased to stock your yard, where you spend advertising dollars or where you focus staff training and development, it needs to be leveraged from what data and information you have about the business. If you haven’t done so already, start understanding the finer details of your dealership and plan for its success.
EFFICIENCIES VIA SYSTEMS Many businesses are inefficient purely due to the fact they aren’t using systems and processes complimentary to what they do. This doesn’t allow them to operate as effectively as possible, which can ultimately impact on many areas of a dealership. Systems should be true enablers that compliment all aspects of your operation. This year is set to be a year of continued innovation and ongoing change in the automotive industry. Those who continue to understand, adapt and embrace change will not only keep up with what is going on around them, but will lay the foundations for the years that will follow and what they will bring.
Anywhere. Anytime.
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www.motorcentral.co.nz
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11
industry profile
From speedway to inspections E
uan Philpot is a busy man with work commitments. If he’s not in this country, he’s likely to be on business across the Tasman, in Japan or – less frequently – in the UK. The chief executive officer of JEVIC NZ is also the New Zealand-based director of Vehicle Inspection NZ (VINZ) and a board member of the Australian Imported Motor Vehicle Industry Association (AIMVIA). His workload has certainly grown since joining JEVIC in 2003, but he’s relishing the challenges. In between commercial commitments, he’s a busy family man with his wife Dionne and three children – and still finds time to enjoy the thrills of speedway at Auckland’s Western Springs. But what does his work entail? With JEVIC, which stands for Japan Export Vehicle Inspection Centre, Philpot is its lead contact point between customers and end users in this country and the company’s head office in Yokohama. “This entails a lot communication and working with various government departments we act on behalf of in Japan and have contracts with,” he explains. “It’s about ensuring our Japan to New Zealand and UK pathways stay open, and trouble-shooting any problems. “This involves building a solid platform of trust, and ensuring people recognise JEVIC as an expert and specialist when it comes to preshipment inspections. “A lot of my travel to Japan is around managing the business by planning group strategy over two and five-year periods, doing audits, and dealing with biosecurity inspections and the NZTA. “We also need to ensure the UK market is steady and developing for Australia and New Zealand, and work with logistics companies. “Being the New Zealand-based director of VINZ is another job in itself, but a whole lot of fun.” JEVIC officially took control of the transport service delivery
12 www.autofile.co.nz
continually have a good business focus. The process has involved helping staff take on the mantra that we are experts in inspections and safety, and leveraging opportunities. “It’s a fun and driven environment when you are tackling change headon and being a market leader.”
GOING ACROSS THE TASMAN
Euan Philpot, chief executive officer of JEVIC NZ
agent in February 2013, although getting to the stage where an official bid could be made involved plenty of graft. “It came about after building the JEVIC brand in this country before the takeover,” explains Philpot. “We had to do all the research and it was a huge learning curve with VINZ being a publicly listed company. “All of the strategy and planning were major highlights for me. It was one of the biggest challenges of my career in the industry, which is fast-moving in this country.
“One of the highlights since the deal going through has been converting the doom around the Vehicle Licensing Review, which overhauled the warrant and certificate of fitness regimes, into good business growth opportunities. “The rewarding side of JEVIC now owning VINZ has been to focus on integrating their strengths, having the ability to influence leaders, and building teams and relationships with people. “We are working hard to
Petrolhead from the star t
One of Euan Philpot’s passions since he was 14 has been speedway and he has gone along to Western Springs every season when living in New Zealand. “It was sad to see Bill Mudgway die recently. In my opinion, he was the voice of speedway, a true legend and gentleman. “He and his team used to commentate from an uncovered box and stop when the cars went past. Nowadays, it’s broadcast over FM radio. “There used to be 22 Saturdays of racing a year and now there are only 10 or so. “I go along a few times each season and my son is now getting a taste for it. It’s a great night out – one of Auckland’s best attractions.”
Philpot was elected onto the board of the AIMVIA, which recently had its first anniversary, late last year to replace Damon Jackson, who owns the JEVIC group. His experience, as it lobbies for the Australian government to open its borders to the importation of more used vehicles from overseas, stands him in good stead. For example, Philpot worked with officials from the Department of Agriculture before JEVIC was authorised to carry out biosecurity inspections for imports into Australia from Japan and the UK – an agreement implemented in July 2013. “That was two years in the making. You have to deal with federal and state governments in Australia as opposed to one in New Zealand. “This means there are a lot of split decisions and, unless you have experience of that environment, it can become a bit of a minefield.” As for the AIMVIA, Philpot attends monthly meetings in Sydney with the board’s work focused on identifying opportunities, and driving communication between its members, sponsors and regulators. “The association is handson and working hard. It has got its foot on the accelerator and has progressed further than anticipated a year ago. “It has gone from being established to fully operational. With the support of the IMVIA, it is gaining from 25 years’ experience of the used-imports industry in New Zealand and lessons learnt. “We see an instant market and want it now, but change takes time. The concerns of regulators need understanding. They are
industry profile
Getting behind the steering wheel Euan Philpot’s first car was a green 1972 850cc Austin Mini with a long gear shift, although it was a lighter colour than the one pictured. “I had to drive it home after being pushed into a concrete wall playing indoor football. I didn’t know it at the time but I had broken t looking at creating the best choice for consumers along with the safest options. “It will be about robust systems, how vehicles get into Australia and onto roads there, as well as consumer benefits. “There are price points at which vehicles become attractive for that market and these sit where New Zealand will not be competing for most of it. Used imports that will be attractive in Australia are likely to be high-end.”
TAKING TRIP BACK IN TIME Philpot’s career in the automotive sector came about while doing voluntary youth work in 1989 when a friend tipped him off that Turners was looking for staff. His position with the auction house was manager of the damaged-vehicles division. It involved overseeing weekly auctions, preparing cars, negotiations and building a rapport with insurance companies. During his last four years there, the internet was really coming on-stream and – at that point – Turners’ only auctions with photos were those of damaged lots. This part of market was small and focused on Auckland, but the company wanted people bidding nationwide, which is where its online presence stemmed from. “There were discussions about it and there was a view that having normal, good cars on the internet would never catch on,” smiles Philpot. “My time at Turners was memorable and back then it
both wrists, which was why I could only use first and second gear.” His dream car is a black Bentley Continental GT V8, while his current drive is a Mazda CX-9 – “a nice car that works really well with the family”.
was a great place to get a good grounding in our industry. Being an auctioneer was fun and I still enjoy stretching my vocal chords.” Through the people Philpot got to know there, the opportunity arose for him to return to England. He was born in Surrey and his family moved to New Zealand when he was six, so he has dual citizenship, while his wife has an Irish passport through ancestry. Philpot was offered four different roles with British Car Auctions, but decided to run U-Save Automotive – a parts-supply company – for four years instead. “We were based in Stratfordupon-Avon, William Shakespeare’s birthplace, and lived in the old servants’ quarters at Clopton Manor. “It was an incredible place to live being a 17th-century country mansion near the town. It had been converted into apartments. “However, when my wife became pregnant with our second child, we decided to return to New Zealand. “About a month later, I was approached to work for JEVIC. It came about through contacts, a meeting was organised with Damon and it started from there.”
them and creates opportunities. “I’m not just talking about cars, but the impact technology will have on our entire lives. That said, there will be major changes in respect to vehicle inspections, servicing and warranties. “We need to think about how technology can improve the way we do business as opposed to any disruption it can cause, and how
quickly things are happening. “Changes that might have taken 10 years to implement 20 years ago will now be achieved much more quickly. “The cloud and data-storage facilities are among changes that help businesses, particularly if you operate over multiple sites or different areas of an industry. There are exciting times ahead.”
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LOOKING TO THE FUTURE Philpot believes challenges that need to be embraced in New Zealand will focus on everevolving technology. “Industry generally needs to ensure developments don’t interrupt mechanisms businesses have in place, but also enhances
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13
Vehicles Research to identify wanted compliant vehicles
dealers Buying now
Buying: Vans, Utes, Light Trucks. Nationwide. Contact Gareth 021660180
gareth@southcitymotors.co.nz
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T
he Imported Motor Vehicle Industry Association (IMVIA) is advising car dealers to arrange for overseas stock to be checked to ensure electronic stability control (ESC) is installed and working. The next deadline for the system to be mandatory in cars and light commercials entering New Zealand’s fleet is March 1. This is when all used MC-class vehicles – essentially four-wheeldrives with special off-road features – have to comply. The IMVIA has published a list for reference purposes showing if various models made between
2011 and 2014 can be imported. A few do, others don’t and some have ESC as an option. This means pre-purchase physical checks should be carried out by dealers or agents, and the easiest way to identify compliant stock is to see if there is a warning light for the crash-avoidance system on the dashboard. The IMVIA will update research when available and is encouraging the Japanese Auto Auction Association to add whether ESC is present on auction sheets. Visit www. autofile.co.nz to find out more.
IMVIA research into ESC for MC-class vehicles
To advertise here, contact:
advertising@autofile.co.nz or ph 021 455 775
EuropEan VEhiclEs WantEd
Audi, BMW, Mercedes, Porsche, Maserati, Jaguar and Land Rover Phone Glenn 021 431 685
commErcial VEhiclEs WantEd
Vans, Utes, RV/SUV Phone Cory 027 203 5701
Make
Model
Honda Honda Lexus Lexus Lexus Lexus Mazda Mazda Mazda Mazda Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Mitsubishi Nissan Nissan Nissan Nissan Nissan Nissan Nissan Nissan Subaru Subaru Subaru Subaru Subaru Suzuki Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota Toyota
CR-V CR-V RX 350 RX 350 RX 450h RX 450h CX-5 CX-5 CX-5 CX-7 Outlander Outlander Outlander Outlander PHEV Pajero Pajero Pajero diesel Pajero diesel RVR 4WD RVR 4WD Dualis Juke 4WD Murano Murano X-Trail X-Trail X-Trail X-Trail diesel Forester Forester Forester Forester Forester Escudo FJ Cruiser Harrier Harrier hybrid Hilux Surf Kluger / Highlander Land Cruiser Prado Prado Prado RAV 4 Rush (Daihatsu Be-Go) Vanguard Vanguard
Model Code
2011
2012
2013
2014
DBA-RE4 DBA-RM4 DBA-GGL15W DBA-GGL16W DAA-GYL15W DAA-GYL16W DBA-KE5AW DBA-KEEAW LDA-KE2AW CBA-ER3P DBA-CW4W DBA-CW5W DBA-GF8W DLA-GG2W DBA-V83W DBA-V93W LDA-V88W LDA-V98W DBA-GA3W DBA-GA4W DBA-KNJ10 CBA-NF15 CBA-PNZ51 CBA-TNZ51 CBA-TNT31 DBA-NT31 DBA-NT32 LDA-DNT31 DBA-SH5 DBA-SH9 DBA-SHJ DBA-SJ5 DBA-SJG CBA-TDA4W CBA-GSJ15W DBA-ZSU65W DAA-MHU38 All All CBA-URJ202W CBA-GRJ150W CBA-GRJ151W CBA-TRJ150W DBA-ACA31W ABA-J210E DBA-ACA33W DBA-GSA33W
P No S S S S No No No S P P No No P P P P P No P S P P P P No P P P P No No P P No P No No P P P P P P S S
D P S S S S No No No D P P No No P P P P P P P S P P P P No P P P P No No P P No D No No P P P P P P S S
D S S S S S No S S D D D S No S S S S D P P S S S S S No S D D D S S P S No D No No S S S S S P S S
D S S S S S S D S D D D S S S S S S D P S S S S D D S S D D D S S P S S D No No S S S S S S D D
Key S: Research indicates ESC fitted as standard, but vehicles should be checked
www.corporatecars.co.nz 14 www.autofile.co.nz
P: ESC may have been fitted as an extra, but should be physically checked No: Research indicates these models do not have ESC fitted D: Model discontinued *Visit www.imvia.co.nz/media/9116/table_esc_per_variant_2011-2014.pdf for a full version of this table, which includes the chassis number range with ESC fitment indicated.
new cars
Sport mode boosts response L
otus has unveiled its replacements for the Elise and Elise S – two of its most successful models. The Elise Sport and Sport 220 will arrive on these shores later this year following the arrival of the new Evora 400, which makes its local debut in the first quarter of 2016. Sport mode is standard in both variants. It increases throttle response, alters traction-slip thresholds and removes understeer recognition to enhance control before intervention. Bilstein sports dampers contribute to sharp steering and provide heightened feedback from the road. The Sport 220, which weighs just 914kg, boasts peak power of 162kW and torque of 250Nm. It makes the 0-100kph in 4.6 seconds and has a top speed of 234kph. The Elise Sport has a top end of
The Lotus Elise Sport and Sport 220
204kph and has a 0-100kph time of 6.5 seconds – thanks to maximum power of 100kW at 6,800rpm and 160Nm of torque at 4,400rpm. The power-to-weight ratio is 115.5kW/tonne for the Sport and 177kW/tonne for the 220, while
Special model secured
S
ubaru’s all-new sporty and performance wagon will arrive in New Zealand in the middle of next year. The Levorg is equipped with all-wheel-drive technology and is similar in size to earlygeneration Legacy GTs. “Subaru of New Zealand has been able to secure a special, high-specification model,” says managing director Wallis Dumper. “We are optimistic about its appeal factor given its suitability for Kiwis. “Despite the global trend towards SUVs, we recognise not everyone wants one. Passionate drivers enjoy the handling of a performance vehicle.
“Sales of the new-generation Legacy sedan and WRX’s success prove there’s still a strong market for drivers’ cars.” While Subaru is launching the Levorg solely with the twolitre engine, “down the track we see potential for the 1.6-litre turbocharged model as suitable for those new to the brand or looking for a company car with a difference”, adds Dumper. “However, Fuji Heavy Industries – the manufacturer of Subarus – can’t make enough cars to satisfy demand across the product portfolio, including the Levorg.” Local pricing and specifications will be unveiled closer to the launch date. Subaru’s Levorg
the extra urban fuel-consumption figures are 5l/100km and 5.9l/100km respectively. Lightweight silver or black cast wheels – 16-inch on the front and 17-inch at the rear – are standard, and there is an optional upgrade to
a forged-wheel design to save an extra 5kg in total unladen weight. Lightweight sports seats in leather, alcantara or classic tartan trim are optional. The Elise is Lotus’ most successful model in terms of numbers built with 32,000 sold globally, while the marque’s small-platform technology has been successfully used in the Exige, Europa and 2-Eleven. New Zealand pricing and specifications for the Elise Sport and Sport 220 will be announced in mid-2016.
VEHICLES WANTED Mercedes Benz
Volkswagen nissan lexus Kia
toyota chrysler Jeep dodge We are always looking to purchase late model
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0274 333 303
pcurin@miles.co.nz
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15
tech report
Vehicle Inspection Specialists Vehicle Inspection NZ
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Get talking about our transport future T
he way in which the government has traditionally prepared for the future is pretty straightforward. It has involved something along the lines of looking at the data, recognising trends and developing plans to meet the demand predicted by projecting those trends forward. Recently – when applied to transport – this tactic has focused on producing trends that demand plans that are untenable or counter to expert predictions. For example, traditional solutions to meet increased need are no longer available. Besides the cost, in many locations simply building more roads isn’t an option. Alternatively, we are finding that technology is disrupting trends at an increasing rate. Global industry experts predict we will all be using service-based autonomous cars for our daily commuting needs in 25 years’ time. If this were to occur, our transport requirements could be met with a fraction of our current fleet. Should we start spending
money to redesign the of intention. The aim road infrastructure to is simply to spark off handle the increased discussion. need as projected by The ministry hopes trends or the decreased to explore, through need predicted by dialogue and debate, experts? the possibilities, And to clarify, while challenges and many experts and consequences of a Kit Wilkerson analysts say this will variety of futures so IMVIA policy adviser and analyst happen, there is no it’s prepared when the consensus on a timeframe with technology comes available. The predictions largely based on realising first story is likely to be the most the technology does not yet exist. contentious with our industry and The Ministry of Transport (MoT) is about the future of road safety. has deviated from the reactive What promise of efficiency position we generally expect of and safety justifies removing the governments. human factor from roads? It is trying to be as prepared as If we could meet transport possible for whatever the future requirements while reducing the may present and what technology number of accidents by more than may be developed. 90 per cent while increasing the The MoT presents a series of efficiency of our roads, would we stories online at www.transport.govt. heed calls to hand in the keys to our nz/futures with each describing a privately owned cars? Would we allow different aspect of a possible future. the government to ban humanCurrently there are four stories, driven vehicles on public roads? but more are expected. The goal The second story on the future of sharing them isn’t to predict the of data and intelligence highlights future and nor are they statements the way data will be used to shape our transport network. For instance, it presents the idea of a “virtual butler”, an application that has access to your schedule, history and preferences, as well as weather and road conditions. This data is used to plan, map and buy the most effective means Screenshots from a video on the Ministry of Transport’s website www.transport.govt.nz/futures of transport, and adjusts your alarms and appointments to meet them – all before you wake up. The story on the future of air travel discusses the possibility this form of transport will become easier and more convenient – and change
16 www.autofile.co.nz
the way people get to work. Imagine how it would reshape urban sprawl if we could make a 200-300km commute in less than an hour at an ease and price comparable to a similarly timed journey on the motorway today. The last story on low-carbon transport describes a future in which focus is put on reducing carbon output. Most vehicles would be electric, while those that aren’t would be highly efficient and use low-carbon fuels. Again, autonomous vehicles would be leveraged to optimise efficiency with freight moved by platoons of optimally laden trucks or ships capable of carrying more than 7,000 containers. I must reiterate the stories presented by the MoT are not plans, nor even predictions. They are catalysts intended to spark a reaction and create discussion. Of course, I must assume the ministry will continue making plans in the traditional manner through analysing data and projecting trends. But it’s remarkable to have government officials being proactive and thinking about the future in a way that’s more focused on what we want as opposed to reducing the problems we have. They are asking for our input. I urge everyone to go and have a look, consider the implications and provide feedback because how often do we have the opportunity to participate at that strategic level? I have to admit to a bit of excitement about New Zealand’s future, especially when I think of a fleet of airships.
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f & i focus
Giving 100 per cent to get results L
ike many people fortunate enough to have a few days away over the festive break, I am finding it hard to get back into setting my alarm clock, shaving, wearing shoes and socks, and I’m almost strangling myself with a tie, but it was great to take a short breather. What a huge year 2015 was with all-time sales records being set in our industry, changes in finance legislation, mergers, new entrants and exits, and not to mention many sporting triumphs. There is never a dull moment, and I take my hat off to everyone for their resilience and tenacity through the rollercoaster ride that is New Zealand’s automotive industry. December capped off another record year for sales growth at Protecta. It was delivered through some targeted acquisitions and a large portion of organic growth,
which was brought competitive and about by increased innovative products focus on specialist and – along with training and support our track record from our sales force. and commitment to We only succeed if your training customers dealership succeeds. to achieve higher With significant profitability – they growth in sales, remain cornerstones. SIMON MOORE we’ve expanded our We expect more Motor-trader development manager customer service significant growth this Protecta Insurance and claims teams to year and have developed maintain the high levels our clients plans to ensure this happens. have enjoyed over the years. Apart from the insurance This year sees Protecta mark business, Protecta and its fantastic its 30th anniversary – a huge staff were involved in raising milestone we are proud of. money for some great causes and The company remains 100 charities in 2015. per cent New Zealand-owned These included the Women’s and operated. We see this as a International Motorcycling competitive edge with direct Association’s Pink Ribbon Ride for access to decision-makers and this Breast Cancer Research, the Blue gives us agility to move quickly in Ribbon Ride for Prostate Cancer, an ever-changing market. Westpac Rescue Helicopter, This agility helps us to provide Canteen, Oxfam, Auckland
City Mission and Daffodil Day among others. We dressed up, raffled, sold, donated, attended, supported and sponsored these and other great causes last year. The Protecta team is excited about continuing to support the wider community in 2016. Are you ready to give 100 per cent this year? We are, so let’s work together and achieve another year of record sales by getting into it. I have seen a large number of sales teams a long way off 100 per cent by failing to respond to online inquiries and return phone calls in a timely manner, gaps in their product knowledge or marketing material, or failing to dedicate attention to the client in front of them. We’re always here to assist, coach, mentor and motivate whenever needed. We would like to wish all of our customers a safe, happy and prosperous new year.
PROTECTA nationwide F & I results December 2015 Best result: $ 1,145
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Worst result: $ 343
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Contact Erin Mills Business Coach, Protecta Insurance Email: erin.mills@protecta.co.nz Phone: 0800 776 832 www.autofile.co.nz
17
Industry movers NZ labour market report STEVE KENCHINGTON has taken on the role of group general manager of Motorcorp New Zealand, and is responsible for overseeing three marques – Volvo, Jaguar and Land Rover. He was formerly the general of manager of Volvo in this country. Before that, he was sales and marketing director of British Credit Trust, managing director of Sime Darby Automobiles NZ Ltd and national sales manager of dealer operations with the Australian Guarantee Corporation. LIZ COUTTS is Ports of Auckland Ltd’s first female chairman having taken over from Rodger Fisher, who was acting chair since Graeme Hawkins’ resignation. “I feel privileged to lead the next phase of development,” she says. “The company has made huge progress since I was appointed to the board in 2010.” Coutts has experience in governance and executive roles in major Kiwi companies, including time as chief executive of the Caxton Group. She chairs Oceania Healthcare, Urwin & Co and the IRD’s risk and assurance committee, and is also a director of the EBOS Group, Skellerup Holdings, Yellow Pages, Sanford and Tennis Auckland. Visit www.autofile.co.nz to find out more. COBY DUGGAN has been appointed by Motorcorp NZ as national manager for Volvo. He will be responsible for overseeing the brand’s strategic growth in this country. He is excited to be working with the marque as it enjoys “unprecedented” success locally. “Volvo has had its biggest year of sales globally and locally.” Duggan previously held senior roles with a range of marques, such as Lexus, Mercedes-Benz and Skoda. JAMES MILLER is now a member of ACC’s board for a three-year term. He has extensive experience in financial markets, investment management and commercial governance. Miller sits on ACC’s investment sub-committee and is chairman of the subcommittee for Shaping Our Future – a business transformation project. MIMI GILMOUR, co-founder of the Mexico and Burger Burger chains, joins Crane Brothers’ founder Murray Crane as a brand ambassador for Jaguar NZ. James McKee, the marque’s marketing manager, says: “As a businesswoman, Gilmour has pushed the boundaries of what is possible and has led exceptional change in her industry in a short space of time.” JULIA HOARE has been appointed as an independent director of Ports of Tauranga. She has extensive commercial, financial, tax, regulatory and sustainability expertise developed during 20 years as a partner with PwC. DAVID WILSON has been appointed as chief executive officer of EC Credit, part of Turners Ltd. He was previously group sales manager and has been with that business for eight years.
TO FEATURE IN INDUSTRY MOVERS EMAIL EDITOR@AUTOFILE.CO.NZ 18 www.autofile.co.nz
The number of job vacancies rose by two per cent in November while there has been a 6.9 per cent increase compared to by the same time in 2014, according to the latest Jobs Online report published by the Ministry of Business, Innovation and Employment (MBIE). November’s jump was led by increased vacancies in hospitality and tourism, and the accounting, human resources, legal and administration industry. Both sectors went up by 1.7 per cent. Seven out of eight occupation groups experienced increased job vacancies. The biggest were for labourers – up by 2.8 per cent – and professionals, which recorded a rise of 2.7 per cent. Sales, retail, marketing and advertising vacancies went by up 1.4 per cent in November and also recorded a 4.2 per cent year-on-year climb. The number of vacancies rose across all skill levels with the largest increases occurring in unskilled jobs, which went up by three per cent, and highly skilled job vacancies – up by 2.9 per cent. Of the 10 regions, nine experienced increases in vacancies. Auckland’s was largest at 2.4 per cent. The Manawatu-Wanganui/ Taranaki region had the only decrease – down by 0.6 per cent. Vacancies in Canterbury grew by 0.5 per cent in November, but fell by 8.8 per cent over the year. David Paterson, MBIE’s labourmarket trends manager, says: “The results are consistent with improved hiring conditions reflected in ANZ’s business outlook.” This shows employment intentions have climbed over the past three months. Meanwhile, the country’s labour force is projected to keep growing, driven by an increasing population and people working
until they are older, reports Statistics New Zealand. “In the short term, high net migration and the age composition of our population are contributing to a growing labour force,” says Vina Cullum, senior manager for population statistics. “Plus we are seeing more men and women aged 55 and over staying in it.” Currently, 2.5 million people are in the labour force – employed and unemployed. The new projections indicate a total labour force of 2.7m by about 2023 and 2.9m in the mid-2030s. In the longer term, however, it is likely to grow much slower. The projections indicate a total labour force of 3.1m by around 2050 and 3.2m in the 2060s. Cullum says: “In the long term, net migration is likely to be generally lower than current high levels and labour-force participation rates may not keep increasing. Our increasingly older age structure will also slow growth.” According to the new projections, which are updated every two to three years, those aged 65 and over will make up an increasing share of the labour force. In 1991, one per cent of it was aged 65-plus. It sits at six per cent at the moment and is projected to increase to 10 per cent in the late 2020s. The labour force includes people aged 15-plus who regularly work for one or more hours per week for financial gain, people who work without pay in a family business, and people who are unemployed and actively seeking part-time or full-time work. People not in the labour force include under-15s, students who do not work for pay, unemployed people not actively seeking work, some people with child-rearing responsibilities, people who work without pay and retirees.
Projections indicate a total labour force of 2.7m by about 2023 and 2.9m in the mid-2030s.
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Most popular car makes searched*
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Most popular makes of What the seller describes as “New motorbike searched*
1 Toyota 2 Nissan 3 Ford 4 Holden 5 Mazda
1 Hilux 2 Corolla 3 Commodore 4 Falcon 5 Golf
1 RV/SUV 2 Ute 3 Sedan 4 Station wagon 5 Hatchback
1 Honda 2 Harley-Davidson 3 Suzuki 4 Yamaha 5 Triumph
Zealand’s fastest street car” has been listed for $359,000. The 2007 Lamborghini Gallardo Superleggera has a twin-turbo V10 engine and an official top speed of 315kph. The grey coupe has had three owners and its fuel economy is 17l/100km. www.autofile.co.nz
19
disputes
Application dismissed after tribunal rules turbo leak was ‘wear and tear’ Background On January 30, 2015, Long Investment Ltd bought a 2007 Toyota Hiace for $19,600 from Bluestone Cars, which was trading as Keystone Cars. The buyer wanted to reject the van because it had an oil leak from its turbo assembly, which the dealer refused to repair, and wanted a refund of the purchase price paid for the vehicle. The trader said the purchaser had contracted out of the CGA and wasn’t entitled to a remedy under the legislation. The dealer added it had repaired – at the buyer’s request – four minor oil leaks in the engine and transmission. It said the claim the turbocharger was leaking and needed replacing was exaggerated given the “minor oil weep” that had appeared after seven months of use of the vehicle. The trader said it was unreasonable to expect it to replace the assembly given the van’s age, mileage and use since it was supplied.
The case The dealer said the purchaser told him it was buying the van for its business as a property developer and builder. The trader marked the vehicle offer and sale agreement with a small asterisk and asked the purchaser to sign next to a clause. This stated: “The purchaser acknowledges and certifies the goods are being acquired for the purchaser’s business and,
accordingly, the parties agree the CGA will not apply.” The buyer also signed a clause to acknowledge the van was being supplied for business purposes, and the provisions of the legislation wouldn’t apply under sections one and 43. The buyer said, through an interpreter, that he didn’t speak English and his son had translated for him. The trader said he couldn’t say if he thought the buyer understood that he had agreed to exclude the CGA. The purchaser told the trader in February that the vehicle was leaking oil. The trader paid Central Automatics to remove the transmission and replace the rear main seal and transmission’s front seal, and service the transmission. Later that month, the trader paid for the transmission’s rear seal and another oil leak to be fixed. The trader said he received a copy of the purchaser’s application to the tribunal in June, made contact with the purchaser and arranged for the vehicle to be taken to Central Automatics. The dealer paid to remove the front suspension and sump, clean and seal the sump, and replace the engine oil. The buyer claimed there was a leak around the turbo assembly and produced a service estimate dated August 18 from Manukau Toyota, which reported oil leaking from it and recommended it be replaced. The trader phoned Manukau
Toyota, which said there was oil around the turbo but it was unsure where it was coming from, so it needed cleaning and road testing.
The finding The tribunal considered – having regard to the van’s value, the purchaser’s lack of legal advice and the language difficulties between the parties – that it was fairly unlikely the purchaser understood the effect of clauses in the sales contract excluding the CGA’s provisions. Accordingly, it didn’t consider it would be fair and reasonable for them to be bound by the provision in the agreement excluding the act. The tribunal then considered the age, mileage and price paid for the van to determine if it complied with the CGA’s guarantee of acceptable quality at the time it was sold. The adjudicator found the vehicle was probably not free of minor faults or as durable as a reasonable consumer would consider acceptable because of four oil leaks found soon after it was supplied to the buyer. However, the tribunal’s assessor said slight oil weeping around the turbo assembly was common in a van of that age and mileage, and it didn’t merit the replacement of the turbo without further investigation. The vehicle was also seen in June by Central Automatics and it didn’t record a leak from the assembly. The van had travelled more than
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20 www.autofile.co.nz
The buyer rejected The case:r the Consumer
his van unde Guarantees Act (CGA) because the dealer refused to repair a specific oil leak. The trader said the purchaser agreed to contract out of the CGA and refused to fix the fault. The tribunal The decision: ’t the dealer’s
ruled that it wasn responsibility to remedy the problem because the van had clocked up 17,000km since it was supplied to the buyer. r Vehicles Disputes At: The Motoland . Tribunal, Auck
17,000km in the seven months the purchaser had owned it. The tribunal ruled the oil leak around the turbo was caused by wear and tear, and it was not the trader’s responsibility to fix it. It found the vehicle failed to comply with the CGA’s guarantee of acceptable quality because of the oil leaks the purchaser experienced with the front and rear-transmission seals, the rear main seal and the sump. But the tribunal ruled the trader responded promptly to the buyer’s requests to fix these problems at its own cost. The trader didn’t accept responsibility for the oil weep from the turbo assembly, which wasn’t diagnosed until August, and the tribunal said the dealer wasn’t responsible for repairing it. It ruled the dealer remedied the vehicle’s faults for which it was responsible within a reasonable time and, as a result, there was no basis to uphold the purchaser’s rejection of the van.
Order The application by the buyer to reject the vehicle was dismissed.
disputes
Trader’s failure to fix odometer fault caused customer to reject vehicle Background Iqbal Mohammed bought a 2003 Mercedes-Benz Avantgarde E500 with 81,778km on its clock from Buy Right Cars for $15,375 on October 4, 2014. He claimed the trader failed to rectify an intermittent fault with the odometer within a reasonable time of being required to do so and rejected the vehicle on June 22, 2015. Mohammed wanted this upheld, and the dealer ordered to refund his purchase price and consequential losses he claimed to have incurred. The trader said it had repaired the faults within a reasonable timeframe and Mohammed wasn’t entitled to reject the vehicle under the CGA.
The case Mohammed contacted the trader on November 18 because the odometer had stopped displaying the distance the car had travelled. The dealer sent the vehicle to Nippon Cars for the instrument cluster to be repaired. Two months later, he contacted the trader regarding the shock absorbers, which were replaced with the dealer paying the $350 excess under the buyer’s Autosure insurance policy. A month later, Mohammed got in touch with the dealer because the odometer fault had reappeared and the air conditioning was faulty. He was asked to take it to CoolCar Air-Conditioning Centre to have the fault repaired using his Autosure policy and the trader paid the $350 excess. A new part was ordered from Germany to repair the odometer
and it was installed on March 19. On May 21, Mohammed told the trader the air conditioning and dashboard clock were faulty. The buyer was advised to take the vehicle back to CoolCar for the airconditioning problem. He then delivered the car to Autohaus Auckland on June 16 when its odometer was on 88,252km – 6,474km more than when he bought it. Autohaus confirmed the charcoal flap motor in the airconditioning system was faulty and causing a clicking noise. It quoted $2,632 including GST to remove and repair the dash, and $460 including GST to replace a faulty heater duo valve. Autohaus said the rockercover gasket leaked oil and quoted $460 including GST to replace both gaskets. The report said the vehicle had a harsh transmission shift, a slight engine misfire and the clock was faulty because its hands had been fitted incorrectly. Eight months and 18 days after supply, Mohammed emailed the trader rejecting the vehicle on the grounds the odometer wasn’t fixed in an appropriate time and listed other faults with it. The trader said it didn’t accept the buyer’s rejection and had offered many times to have the car repaired. At the October 14 hearing, Mohammed produced a report from Autohaus dated September 7. This stated a diagnostic test confirmed there were communication issues between the instrument cluster and
Call
the transmission control unit. The report said a fault with the control unit, which transferred mileage-coded information to the cluster, was suspected and had likely been caused by incorrect coding or a faulty unit.
The finding The tribunal, in determining whether the vehicle complied with the CGA’s guarantee of acceptable quality, took into account it was an 11-year-old imported MercedesBenz that had travelled 81,778km when sold for $15,375. The trader’s chronology of events showed its odometer was faulty so soon after purchase that the tribunal believed it was likely the problem existed at the time of supply. If the fault wasn’t present when the car was sold, the electrical system lacked the durability a consumer would reasonably expect. The vehicle also had issues with its shock absorbers within three months of supply, its air conditioning within four months of sale and also its clock. The tribunal found the car didn’t comply with the guarantee of acceptable quality in section six of the CGA at the time of sale because it wasn’t either free of minor faults or as durable as a reasonable consumer would regard as acceptable. The buyer took the vehicle back to the trader for the odometer display fault first and about six weeks after sale, according to the dealer. The trader paid for the fault
buyer rejected The case:ldThe Mercedes-Benz
his 11-year-o under the Consumer Guarantees Act (CGA) after he claimed the trader failed to remedy a problem with the odometer. The dealer said it repaired the car’s faults within a reasonable timeframe.
n: The application The decisio vehicle was upheld by
to reject the the tribunal. The trader was ordered to reimburse the full purchase price of $15,375 and specified costs incurred by the buyer. r Vehicles Disputes At: The Motoland . Tribunal, Auck
to be diagnosed by Nippon Cars, but it didn’t fix the problem. The second time Mohammed reported the odometer display fault, the dealer allowed a component to be replaced and the instrument cluster to be reprogrammed. However, Autohaus’ report, which the tribunal accepted as reliable, stated the odometer issue remained. Although the tribunal accepted the trader agreed to Mohammed’s requests to repair the odometer, its suppliers failed to remedy the problem. It ruled the buyer needed the dealer to fix the odometer display and gave it a reasonable timeframe to do so, but the trader hadn’t done so. The tribunal found the rejection of the car occurred in accordance with section 22 of the CGA and within a reasonable time from the date of supply.
Orders The application to reject the vehicle was upheld. The trader was ordered to reimburse the car’s purchase price of $15,375 and $440 for Autohaus’ reports.
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Getting the auto industry’s attention for more than 25 years Contact Brian McCutcheon
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p: 021 455 775
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Brought to you by
c
the
u
u
d Auckland Hamilton Thames o Whangarei n Tauranga Rotorua Gi sborne Napi e r New Plymouth Wanganui Palmerston North Masterton Welli n gton Nelson Blenheim Greymouth
Aro
xx% 4.6%
Total Total imported Used Imported used Cars cars
12,598 xx
ry
Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Wellington Nelson Blenheim DMasterton Greymouth Thames 5 e cWhangarei Auckland Hamilton e m b er 2 01
7,110 xxxx
2014: 2014:6,797 8,517
nt
Total Totalnew New cars Cars
2014:
xxx 12,448 xx% 1.2%
Thames
Whangarei 2014: 143
11.9%
NEW: 69
2014: 41
68.3%
USED: 284 2014: 257
10.5%
USED: 81
2014: 67
20.9%
NEW: 160
Tauranga
Auckland NEW: 3,237 2014: 3,156
2 .6%
USED: 6,267 2014: 6,327 0.9%
NEW: 253
2014: 220 15.0%
USED: 527
2014: 521
Rotorua
Hamilton NEW: 395 USED: 739
1.2%
2014: 340 16.2% 2014: 742
0.4%
NEW: 78
2014: 49
59.2%
USED: 122
2014: 116
5.2%
Gisborne
New Plymouth NEW: 121 USED: 131
2014: 121 2014: 198
0%
NEW: 32
2014: 25
28.0%
33.8%
USED: 63
2014: 59
6.8%
Napier
Wanganui NEW: 81
2014: 93
12.9%
NEW: 168
2014: 162
3.7%
USED: 66
2014: 68
2.9%
USED: 239
2014: 207
15.5%
Masterton
Palmerston North NEW: 208
2014: 161
USED: 309 2014: 275
29.2%
NEW: 47
2014: 37
27.0%
12.4%
USED: 64
2014: 52
23.1%
Wellington
Nelson NEW: 88
2014: 76
15.8%
NEW: 497
USED: 237
2014: 244
2.9%
USED: 886 2014: 909
2014: 487
Blenheim
Westport NEW: 6
2014: 5
20.0%
NEW: 71
2014: 45
57.8%
USED: 14
2014: 17
17.6%
USED: 43
2014: 53
18.9%
Christchurch
Greymouth
2014: 1,350 9.9%
NEW: 16
2014: 12
33.3%
NEW: 1,217
USED: 35
2014: 54
35.2%
USED: 1,848 2014: 1,679
10.1%
Timaru NEW: 52
2014: 36
44.4%
USED: 91
2014: 125
27.2%
Oamaru NEW: 11
2014: 12
8.3%
USED: 27
2014: 34
20.6%
Dunedin NEW: 225
2014: 143
57.3%
USED: 366 2014: 309
18.4%
Invercargill NEW: 78
2014: 83
6.0%
USED: 159
2014: 135
17.8%
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Nagoya
16 Jan
2 Feb
15 Feb
4 Mar
Yokohama
17 Jan
3 Feb
16 Feb
5 Mar
Auckland
4 Feb
18 Feb
5 Mar
20 Mar
Wellington
7 Feb
22 Feb
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www.heiwa-auto.co.nz
Imported Passenger Vehicle Sales by Make - December 2015 Make
DEC'15
DEC'14
+/- %
DEC'15 Mkt Share
2015 YEAR TO DATE
2015 Mkt share
Imported Passenger Vehicle Sales by Model - December 2015 Make
Model
DEC'15
DEC'14
+/- %
DEC'15 Mkt Share
2015 YEAR TO DATE
2015 Mkt share
Toyota
2,868
2,842
0.9
22.8%
32,649
22.7%
Nissan
Tiida
770
702
9.7
6.1%
6,609
4.6%
Nissan
2,576
2,476
4.0
20.4%
25,188
17.5%
Mazda
Demio
629
518
21.4
5.0%
5,985
4.2%
Mazda
2,170
2,035
6.6
17.2%
23,563
16.4%
Mazda
Axela
542
516
5.0
4.3%
6,682
4.7%
Honda
1,309
1,147
14.1
10.4%
15,265
10.6%
Suzuki
Swift
498
634
-21.5
4.0%
7,083
4.9%
Subaru
667
549
21.5
5.3%
7,908
5.5%
Honda
Fit
434
321
35.2
3.4%
5,509
3.8%
Suzuki
591
734
-19.5
4.7%
8,454
5.9%
Subaru
Legacy
328
309
6.1
2.6%
4,204
2.9%
Mitsubishi
481
523
-8.0
3.8%
5,353
3.7%
Toyota
Wish
306
272
12.5
2.4%
3,498
2.4%
Volkswagen
438
469
-6.6
3.5%
5,381
3.7%
Mazda
Atenza
292
305
-4.3
2.3%
3,473
2.4%
Bmw
435
504
-13.7
3.5%
6,309
4.4%
Volkswagen
Golf
260
291
-10.7
2.1%
3,323
2.3%
Audi
201
256
-21.5
1.6%
2,799
1.9%
Toyota
Estima
251
238
5.5
2.0%
2,231
1.6%
Mercedes-Benz
194
221
-12.2
1.5%
2,683
1.9%
Mitsubishi
Outlander
250
255
-2.0
2.0%
2,711
1.9%
Ford
123
147
-16.3
1.0%
1,639
1.1%
Mazda
Mpv
246
286
-14.0
2.0%
2,709
1.9%
Volvo
84
90
-6.7
0.7%
935
0.7%
Toyota
Corolla
197
197
0.0
1.6%
2,499
1.7%
Lexus
46
34
35.3
0.4%
615
0.4%
Nissan
Wingroad
193
132
46.2
1.5%
1,314
0.9%
Hyundai
45
49
-8.2
0.4%
476
0.3%
Toyota
Vitz
189
261
-27.6
1.5%
2,653
1.8%
Holden
44
26
69.2
0.3%
449
0.3%
Honda
Odyssey
181
200
-9.5
1.4%
2,076
1.4%
Chevrolet
42
46
-8.7
0.3%
621
0.4%
Nissan
Murano
167
141
18.4
1.3%
1,646
1.1%
Jaguar
36
41
-12.2
0.3%
448
0.3%
Mazda
Premacy
165
185
-10.8
1.3%
1,871
1.3%
Land Rover
35
35
0.0
0.3%
423
0.3%
Nissan
Bluebird
161
143
12.6
1.3%
1,792
1.2%
Mini
34
46
-26.1
0.3%
557
0.4%
Toyota
Ist
143
130
10.0
1.1%
1,579
1.1%
Peugeot
20
20
0.0
0.2%
225
0.2%
Toyota
Prius
143
77
85.7
1.1%
1,334
0.9%
Dodge
13
12
8.3
0.1%
221
0.2%
Nissan
Note
142
150
-5.3
1.1%
1,796
1.3%
Chrysler
12
15
-20.0
0.1%
101
0.1%
Nissan
Dualis
141
189
-25.4
1.1%
1,727
1.2%
Teana
140
129
8.5
1.1%
1,359
0.9%
Porsche
12
13
-7.7
0.1%
154
0.1%
Nissan
Daihatsu
11
18
-38.9
0.1%
204
0.1%
Subaru
Outback
130
94
38.3
1.0%
1,386
1.0%
Kia
11
5
120.0
0.1%
81
0.1%
Honda
Accord
128
139
-7.9
1.0%
1,580
1.1%
Jeep
9
5
80.0
0.1%
124
0.1%
Honda
Stream
120
97
23.7
1.0%
1,409
1.0%
Bentley
6
4
50.0
0.0%
32
0.0%
Toyota
Mark X
119
102
16.7
0.9%
1,476
1.0%
Buick
6
4
50.0
0.0%
24
0.0%
Nissan
March
116
119
-2.5
0.9%
1,337
0.9%
Renault
6
4
50.0
0.0%
95
0.1%
Toyota
Caldina
115
82
40.2
0.9%
1,158
0.8%
Alfa Romeo
5
6
-16.7
0.0%
52
0.0%
Honda
Cr-V
111
137
-19.0
0.9%
1,169
0.8%
Oldsmobile
5
4
25.0
0.0%
12
0.0%
Subaru
Impreza
110
97
13.4
0.9%
1,423
1.0%
Rover
5
3
66.7
0.0%
30
0.0%
Toyota
Auris
109
128
-14.8
0.9%
1,424
1.0%
Aston Martin
4
3
33.3
0.0%
21
0.0%
Mazda
Verisa
108
62
74.2
0.9%
1,087
0.8%
Avensis
104
122
-14.8
0.8%
1,169
0.8%
36.2%
53,361
37.1%
100.0% 143,642
100.0%
Citroen
3
4
-25.0
0.0%
37
0.0%
Toyota
Others
51
58
-12.1
0.4%
514
0.4%
Others
4,560
4,688
-2.7
12,598
12,448
1.2
100.0%
143,642
100.0%
Total
12,598
12,448
1.2
Total
Peace of Mind. www.heiwa-auto.co.nz 24 www.autofile.co.nz
www.heiwa-auto.co.nz
Market strongest for 10 years F
irst-time registrations of used imported passenger vehicles in New Zealand last year notched up a healthy increase compared to 2014. There were 143,642 sales in 2015 compared to 129,925 in the previous 12 months for a jump of 13,717 units – or by 10.6 per cent – for the best year since 2005 when 166,466 were sold. The top model of last year was the Suzuki Swift on 7,083 units for a market share of 4.9 per cent. It was followed by Mazda’s Axela on 6,682 and 4.7 per cent, while Nissan’s Tiida came third with 4.6 per cent thanks to 6,609 registrations. Fourth spot was taken out by another Mazda – the Demio – on 5,985 units for a 4.2 per cent share of the market. Honda’s Fit came fifth with 5,509 sales and 3.8 per cent. Toyota was 2015’s most popular marque when it came to sales of used imported cars. It secured 32,649 registrations for a 22.7 per cent market share. Nissan came second on 17.5 per cent and 25,188 units, while Mazda was third with 23,563 sales and 16.4 per cent. Honda claimed fourth with 15,265 registrations, which equated to 10.6 per cent of the total. The top five was rounded off by Suzuki on 8,454 and 5.9 per cent. There were 12,598 registrations of used imported cars last month, which was a 1.2 per cent increase over 12,448 units in the previous December. Toyota was the top marque on 2,868 units, which was a decrease
of 0.9 per cent compared to 2,842 in the same month of 2014. Nissan was second on 2,576 with Mazda third on 2,170. As for models last month, the Tiida came first on 770 units – up by 9.7 per cent compared to December 2014. The Demio was second on 629 with the Axela third on 542. Autofile contacted some dealers around the country to get their views on the market. Graeme Rutherford is co-founder of Wheels on Wairau in Glenfield on Auckland’s North Shore – an established dealership specialising
as the one for those with 1,500cc to 1,800cc engines.” With about 120 units on his yard, Rutherford noticed a slight decrease in sales between September and October 2015, which he says partly reflects current issues around obtaining stock from Japan. “We sold around 85 units in September and noticed a drop in October to 70,” he told Autofile. “Because we have been here a long time, word of mouth gets us through any downtimes. We are good to our customers and such
Used Imported Passenger Registrations - 2013-2015 14000 13000 12000 11000 10000 9000 8000
2013 2014
7000
2015
6000 Jan Feb Mar Apr May Jun
in low-mileage used imports. “We deal mainly in Toyota, Nissan and Honda, and – within those – the whole range of models,” he says. “Our price range is about $7,000 to $15,000. We tend to stock the basic economy-type cars rather than turbos or ‘go fast’ cars. It’s mainly middle-of-the-road stock. “There is still a market for 3.6-litre Holdens, but – having said that – not as large a market
Jul Aug Sep
Oct Nov Dec
business practices will get a yard through a small downturn.” Rutherford doesn’t attribute any drop in sales entirely to the exchange rate between the yen and New Zealand dollar because he feels buyer demand is everpresent irrespective of increased prices for used vehicles. “Even with the exchange rate, if a person’s car blows up, he or she has got to buy another
vehicle regardless of whether it’s $1,000 dearer than last month or not,” explains Rutherford. “In a lot of cases, we might forfeit our margins just to keep turnover going. “We went through a patch about two months ago when it was quite difficult to get stock in from Japan and our stock was reduced. “However, within the next few weeks we expect it to be back at the 120-unit mark, which is our usual size.” Greg McCracken, of Stephen Hill Motors in Hastings, says: “We have an interest in V8s. Manuals are always strong and anything not run of the mill. “We have steered away from vans because their demand hasn’t bounced back. A lot of guys now go for utes instead.” Peter Wilson, manager of Superior Cars in New Plymouth, says: “It was a tough year for both ends of the market – in New Zealand and Japan. “We have tried to maintain business by marketing effectively and giving a more personal service. Through that, we seem to be able to make ends meet. “Here in the Taranaki, we also experience regional effects of the economy, such as the dairy downturn earlier in the year and then the oil situation as well. It seems like the provinces have had it pretty average really. “We have noticed an upsurge in interest for utes. We rely on tradies and it’s like having three cars in one when it comes to double cabs. Townies still enjoy driving SUVs.”
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Kei Mikuriya • mikuriya@heiwa-auto.co.jp www.autofile.co.nz
25
www.heiwa-auto.co.nz
Used car imports reach 150k
T
he amount of used passenger vehicles crossing our wharves last year outstripped those in 2014 by 13,224 units. There were 150,862 units imported into New Zealand during 2015 for an increase of 9.6 per cent on 137,638 in the previous year. Last year’s total included 143,125 used cars coming here from Japan. Australia came second with 4,893 units with the US third on 1,041. Fourth spot went to the UK on 939 followed by Singapore on 611. Positions six to eight were taken by South Africa on 51, Germany on 37 and Canada on 25.
A total of 14,725 used cars came into the country during December. The biggest month of 2015 was April with 16,155 units and the lowest total was 8,673 in September. Meanwhile, 5,607 used light commercials were imported last year compared to 5,422 in 2014. Graeme Rutherford, cofounder of Wheels on Wairau in Glenfield on Auckland’s North Shore, says sourcing stock on monthly trips to Japan has proven more difficult lately. However, he reports that sales are consistent overall. “It has got harder because of the expense of units over there
at the moment,” he told Autofile. “There are quite a few other countries involved in importing from Japan as well, so there’s a lot of competition. “In saying that, our buyer over there has been dealing with that side of things for about 19 years, so we seem to be able to stay as a priority, which is a great advantage to us. “Business hasn’t been too bad. I would think people who are new to the industry would find it quite hard though.” Rusty McKnight, of Chance Cars in Rotorua, says: “I get real satisfaction out of our agents in Japan. “For example, if a car arrives
here without a bolt, they will go halves with you to replace it. We have a good relationship and have dealt with them for 14 years. “We don’t like to buy from auctions. We like to have a look at a stock list and then pick the bones out of that, and sometimes the agents will ring us about suitable vehicles. “In this way, it’s easy to keep our yard stocked with what we need, especially when sales are great. We’re just swelling at the seams. “We had big people movers arriving just before Christmas. They will sell quickly and this will make up for any slower sales up until then.”
Used import passenger vehicle arrivals 16000 15000 14000 13000 12000 11000 10000
2015
9000
2014
8000 7000 6000 5000 4000 3000
2013 2012
JAN
FEB
MAR
APR
MAY
JUN
JUL
Aug
Sept
Oct
Nov
Dec
Used Import Passenger Vehicles By Country Of Export 2015
2014
2013
Jan ’15
Feb ’15
Mar ’15
Apr ’15
May ’15
Jun ’15
JuL ’15
Aug ’15
Sep ’15
Oct ’15
Nov ’15
Dec ’15
Dec Share %
2015 Total
2014 TOTAL
2013 total
Australia
258
407
414
359
424
449
476
406
376
412
412
500
3.4%
4,893
3,167
1,990
Great Britain
110
87
86
71
73
108
66
64
64
56
66
88
0.6%
939
1,885
2,908
9,635
9,357
14,301
15,554
13,892
12,148
11,221
11,512
8,071
11,741
11,743
13,950
94.7%
143,125
130,770
100,784
Singapore
30
30
17
48
55
57
77
45
60
60
57
75
0.5%
611
252
146
Usa
80
58
121
92
77
77
92
82
84
101
92
85
0.6%
1,041
1,278
1,205
Country of Export
Japan
Other countries Total
26
24
25
31
10
25
12
20
18
18
17
27
0.2%
253
286
251
10,139
9,963
14,964
16,155
14,531
12,864
11,944
12,129
8,673
12,388
12,387
14,725
100.0%
150,862
137,638
107,284
www.heiwa-auto.co.nz contact: Kei Mikuriya mikuriya@heiwa-auto.co.jp
26 www.autofile.co.nz
CHOICE 100,000 vehicles per month
Proud to sponsor the SecondHand Car Sales Statistics
Private sales exceed half of total C
hanges of ownership for second-hand passenger vehicles in 2015 came in at 862,949 units. Public-to-public transactions accounted for 57.8 per cent of the total meaning 498,436 were traded outside car dealerships. Sales by registered traders amounted to 209,989, or 24.3 per cent, while there were 154,524 tradeins, which came in at 17.9 per cent. There were 18,197 registrations recorded by dealers last month compared to 17,894 in December 2014 – an increase of 1.7 per cent. The respective totals for publicto-trader transactions were 12,910 and 13,084 for a 1.3 per cent drop.
Private sales totalled 41,235 last month. This was a three per cent increase on 40,044 over the same timescale. The biggest proportional rise in dealer-to-public business was reported in Rotorua where they went up by 14 per cent from 285 to 325. Napier was second with a 10.5 per cent jump from 579 to 640. “Lots of dealerships are doing the same thing, so for us it comes down to sourcing later-model and low-kilometre cars,” says Greg McCracken, dealer principal of Stephen Hill Motors. “We don’t deal in the lower bracket of the market so that balances out the competition.
“Our Hastings yard carries 120 or so units and Napier is similar. SUV sales and commercials are always strong here. “We don’t tend to source them from Japan – apart from a few SUVs – but instead maintain a supply of New Zealand used commercials. “We look for units that have a bit of an x-factor to them. We look for vehicles with something different about them, so we have a point of difference from other yards up the street. “We try to avoid the peoplemover theme as much as possible and focus on more unique models.” The biggest decrease in dealer
transactions in December was seen in Oamaru where they tumbled by 44.7 per cent from 94 to 52. Westport was next with a 36.8 per cent decrease to 24 from 38. As for trade-ins, the biggest increase – of 9.5 per cent – was seen in Masterton where they rose from 95 to 104. Wanganui was second by going up from 102 to 111, or by 8.8 per cent. No public to-dealer transactions were recorded in Westport last month, while they fell by 36.7 per cent – from 885 to 560 – in Palmerston North. The next biggest drop was 27.8 per cent in New Plymouth from 248 units to 179.
Secondhand car sales - December 2015 Dealer-To-Public
Public-To-Public
Public-To-Dealer
Dec '15
Dec '14
+/- %
MARKET SHARE
Dec '15
Dec '14
+/- %
Dec '15
Dec '14
+/- %
599
564
6.2
3.29
1,852
1,844
0.4
262
269
-2.6
Auckland
6,491
5,944
9.2
35.67
14,356
13,634
5.3
4,960
4,800
3.3
Hamilton
1,467
1,405
4.4
8.06
3,241
3,228
0.4
1,207
1,141
5.8
Whangarei
Thames
217
235
-7.7
1.19
580
489
18.6
83
85
-2.4
Tauranga
956
969
-1.3
5.25
2,000
2,003
-0.1
598
632
-5.4
Rotorua
325
285
14.0
1.79
917
695
31.9
94
105
-10.5
Gisborne
179
168
6.5
0.98
347
367
-5.4
92
104
-11.5
Napier
640
579
10.5
3.52
1,480
1,374
7.7
425
394
7.9
New Plymouth
394
386
2.1
2.17
900
912
-1.3
179
248
-27.8
Wanganui
167
178
-6.2
0.92
509
444
14.6
111
102
8.8
Palmerston North
759
850
-10.7
4.17
1,519
1,602
-5.2
560
885
-36.7
Masterton
200
180
11.1
1.10
385
385
0.0
104
95
9.5
Wellington
1,584
1,501
5.5
8.70
2,816
2,773
1.6
1,182
1,176
0.5 -6.6
Nelson
307
358
-14.2
1.69
954
957
-0.3
256
274
Blenheim
190
188
1.1
1.04
396
398
-0.5
117
116
0.9
Greymouth
86
103
-16.5
0.47
191
213
-10.3
33
49
-32.7 -100.0
Westport Christchurch Timaru
24
38
-36.8
0.13
68
82
-17.1
0
1
2,218
2,462
-9.9
12.19
5,320
5,282
0.7
1,766
1,632
8.2
243
241
0.8
1.34
512
543
-5.7
144
149
-3.4 -20.8
Oamaru
52
94
-44.7
0.29
149
247
-39.7
19
24
Dunedin
694
749
-7.3
3.81
1,783
1,660
7.4
450
478
-5.9
Invercargill
405
417
-2.9
2.23
960
912
5.3
268
325
-17.5
18,197
17,894
1.7
100.00
41,235
40,044
3.0
12,910
13,084
-1.3
NZ total
Consumer Guarantees Act 1993 Motor Vehicle Sales Act 2003 Sale of Goods Act 1908 Fair Trading Act 1986 Energy Efficiency and Conservation Act 2000
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27
new car sales New Passenger Vehicle Sales by Make - December 2015 Make
Dec'15
Dec'14
+/- %
Dec'15 Mkt Share
2015 YEAR TO DATE
New Passenger Vehicle Sales by Model - December 2015 2015 Mkt share
Make
Model
Dec'15
Dec'14
+/- %
Dec'15 2015 YEAR Mkt Share TO DATE
2015 Mkt share
Toyota
1,608
1,888
-14.8
22.6%
17,963
18.9%
Toyota
Corolla
471
773
-39.1
6.6%
6,516
6.9%
Holden
758
790
-4.1
10.7%
10,247
10.8%
Toyota
Rav4
461
309
49.2
6.5%
3,522
3.7%
Mazda
588
528
11.4
8.3%
8,707
9.2%
Suzuki
Swift
264
229
15.3
3.7%
2,375
2.5%
Ford
532
370
43.8
7.5%
6,071
6.4%
Toyota
Highlander
248
270
-8.1
3.5%
2,542
2.7%
Mitsubishi
493
405
21.7
6.9%
5,654
5.9%
Mazda
Cx-5
189
194
-2.6
2.7%
2,583
2.7%
Suzuki
430
359
19.8
6.0%
4,377
4.6%
Toyota
Yaris
183
251
-27.1
2.6%
2,502
2.6%
Nissan
416
352
18.2
5.9%
4,733
5.0%
Holden
Captiva
160
207
-22.7
2.3%
2,459
2.6%
Hyundai
413
404
2.2
5.8%
7,686
8.1%
Nissan
X-Trail
148
99
49.5
2.1%
1,555
1.6%
0 14600.0
Kia
245
176
39.2
3.4%
3,260
3.4%
Hyundai
Tucson
146
2.1%
442
0.5%
Mercedes-Benz
223
94
137.2
3.1%
2,095
2.2%
Mazda
Mazda3
142
127
11.8
2.0%
2,507
2.6%
Volkswagen
223
184
21.2
3.1%
3,780
4.0%
Mitsubishi
Asx
135
83
62.7
1.9%
1,571
1.7%
Honda
149
190
-21.6
2.1%
3,613
3.8%
Holden
Commodore
135
222
-39.2
1.9%
2,714
2.9%
Bmw
132
119
10.9
1.9%
1,954
2.1%
Holden
Cruze
133
162
-17.9
1.9%
1,554
1.6%
Jeep
102
122
-16.4
1.4%
1,438
1.5%
Mitsubishi
Lancer
133
66
101.5
1.9%
1,156
1.2%
Subaru
100
155
-35.5
1.4%
2,268
2.4%
Nissan
Qashqai
131
138
-5.1
1.8%
1,573
1.7%
Fiat
83
184
-54.9
1.2%
800
0.8%
Mitsubishi
Outlander
126
180
-30.0
1.8%
1,789
1.9%
Ssangyong
67
58
15.5
0.9%
1,533
1.6%
Holden
Barina
115
69
66.7
1.6%
1,159
1.2%
Audi
66
96
-31.3
0.9%
1,766
1.9%
Ford
Focus
100
129
-22.5
1.4%
1,037
1.1%
Land Rover
64
23
178.3
0.9%
919
1.0%
Nissan
Pulsar
93
34
173.5
1.3%
686
0.7%
Volvo
62
14
342.9
0.9%
505
0.5%
Mazda
Cx-3
92
0
9200.0
1.3%
970
1.0%
Lexus
61
40
52.5
0.9%
641
0.7%
Mazda
Mazda2
91
156
-41.7
1.3%
1,489
1.6%
Renault
56
8
600.0
0.8%
231
0.2%
Volkswagen Golf
90
65
38.5
1.3%
1,381
1.5%
Dodge
40
40
0.0
0.6%
627
0.7%
Ford
Mondeo
83
10
730.0
1.2%
958
1.0%
Santa Fe
83
81
2.5
1.2%
2,042
2.1%
Skoda
39
38
2.6
0.5%
1,007
1.1%
Hyundai
Peugeot
33
48
-31.3
0.5%
759
0.8%
Honda
Jazz
82
114
-28.1
1.2%
1,890
2.0%
Mini
28
28
0.0
0.4%
615
0.6%
Suzuki
Vitara
82
0
8200.0
1.2%
337
0.4%
Isuzu
14
2
600.0
0.2%
201
0.2%
Ford
Kuga
78
62
25.8
1.1%
1,199
1.3%
Chery
13
15
-13.3
0.2%
201
0.2%
Ford
Territory
78
57
36.8
1.1%
936
1.0%
Citroen
13
14
-7.1
0.2%
223
0.2%
Holden
Trax
77
38
102.6
1.1%
908
1.0%
Jaguar
10
4
150.0
0.1%
175
0.2%
Kia
Sportage
75
74
1.4
1.1%
1,128
1.2%
Alfa Romeo
9
5
80.0
0.1%
105
0.1%
Toyota
Landcruiser Prado
73
15
386.7
1.0%
849
0.9%
Yamaha
8
5
60.0
0.1%
108
0.1%
Kia
Rio
72
18
300.0
1.0%
581
0.6%
Porsche
7
3
133.3
0.1%
444
0.5%
Ford
Mustang
68
1
6700.0
1.0%
76
0.1%
Tesla
7
0
700.0
0.1%
21
0.0%
Fiat
Punto
62
171
-63.7
0.9%
449
0.5%
Camry
59
195
-69.7
0.8%
865
0.9%
Maserati Others Total
4
1
300.0
0.1%
66
0.1%
Toyota
14
35
-60.0
0.2%
304
0.3%
Others
2,352
2,198
7.0
33.1%
38,797
40.8%
7,110
6,797
4.6
100.0%
95,097
100.0%
Total
7,110
6,797
4.6
100.0%
95,097
100.0%
From the rising sun to the long white cloud The history of used car importing to New Zealand 28 www.autofile.co.nz
new car sales
Fierce competition with new models S
ales of new passenger vehicles came in at 95,097 during 2015. This was a 4.9 per cent increase on the previous year’s total of 90,632, or by 4,465 units. Toyota completed a onetwo in the models ladder with the Corolla securing 6,516 registrations to take out 6.9 per cent of the car market, according statistics published by the NZTA. Its RAV 4 finished second with 3,522 and 3.7 per cent, and Holden’s Commodore came third on 2,714 sales and 2.9 per cent. The competitive nature of 2015’s market was illustrated by only 81 registrations separating positions four through to seven. Mazda’s CX-5 sold 2,583 units and fifth spot was taken out by Toyota’s Highlander on 2,542. There were 2,507 Mazda 3s registered and the Toyota Yaris finished on 2,502. Holden’s Captiva was eighth with 2,459, the Suzuki Swift sold 2,375 units and the top 10 was completed by Hyundai’s ix35 on 2,190. Toyota was the best-selling marque of 2015 when it came to new passenger vehicles on 17,973 units to claim 18.9 per cent of the market. Holden was second with 10,247 sales for 10.8 per cent. Mazda took out third spot with 8,707 and 9.2 per cent. Ford was fourth thanks to 6,071 registrations for a market share of 6.4 per cent, while Mitsubishi rounded off the top five on 5,654 and 5.9 per cent. One of last year’s high-riding performers was Mazda, which topped 10,000 sales in a calendar year for the first time to claim
fourth spot for overall registrations in addition to third for new passenger vehicles. The marque also had its best December on record with a total of 685 overall deliveries to extend its record retail performance to 23 consecutive months. “It was a highly successful year and one the company is proud of,” says Andrew Clearwater, managing director of Mazda NZ. He adds the combination of a “great line-up of vehicles” and the marque’s hard work resulted in “a winning combination that
It secured the title for 2015 by 141 registrations in a closefought race – 2,095 units to 1,954 – while Audi came third on 1,766. The results for last year were in stark contrast to 2014 when BMW topped the ladder with 2,132 registrations, Audi was second on 2,075 and MercedesBenz came third on 1,813. “I wish to thank customers who entrusted our brand in 2015 and recognised it as the best in the luxury market,” says Ben Giffin, general manager of Mercedes-Benz Cars NZ, who
New Passenger Registrations - 2013-2015 10000 9500 9000
2013 2014 2015
8500 8000 7500 7000 6500 6000 5500 Jan Feb Mar Apr May Jun
helped us to deliver our best year ever”. The company also secured 20plus major automotive awards in 2015 “and widespread success across the dealer network with a number achieving record sales results”. In another notable development, Mercedes-Benz wrestled the number-one spot in New Zealand for luxury marques from BMW.
Jul Aug Sep
Oct Nov Dec
adds the company experienced year-on-year expansion in many segments. Meanwhile, Toyota took out of the top four spots in 2015’s market for sales of new rental cars. This sector was predictably dominated by the Corolla securing 20 per cent of all sales to rental companies on 3,415 units, while the RAV 4 came second on 1,665 and 10 per cent.
The Highlander was third on 1,418 and the Yaris fourth on 942. The rentals top five was rounded off by Holden’s Commodore on 931 units. As for the last month of last year, 7,110 new cars were registered for the biggest December since 1976 and a 4.6 per cent increase over 6,797 sales in December 2014. The Corolla was the top model on 471 units, but this was a 39.1 per cent decrease compared to 773 in the same month of the previous year. The RAV 4 came second with a 49.2 per cent jump to 461 and the Swift was third with a 15.3 per cent rise to 264. One new entrant to the market – Ford’s Mustang – is attracting widespread attention in the industry and sold 68 units in December, its first full month of availability. Neil Smith, dealer principal of Grey Ford in Greymouth, says: “We are a small dealership, but have had a lot of inquiries about the new Mustang and have a good order book for it. “There is high interest and it’s a bonus if you have something like the Mustang, and it’s also great for our staff and the Ford team. “The public is being wowed by the marketing, and there’s a lot of hype and excitement around it. People have been waiting to see them in the showroom.” Last month’s best-selling marque was Toyota with 1,608 registrations, which were down by 14.8 per cent compared to December 2014.
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new cars
Total
6
66.7
3
33.3
9
Audi
40
60.6
26
39.4
66
BMW
44
33.3
88
66.7
132
Chery
13
100.0
0
0.0
13
Chrysler
1
50.0
1
50.0
2
Citroen
8
61.5
5
38.5
13
Dodge
11
27.5
29
72.5
40
Fiat
39
47.0
44
53.0
83
Ford
193
36.4
337
63.6
530
Holden
362
47.8
396
52.2
758
Honda
121
81.2
28
18.8
149
Hyundai
147
35.6
266
64.4
413
Isuzu
5
35.7
9
64.3
14
Jaguar
4
40.0
6
60.0
10
Alfa Romeo
Jeep
80
78.4
102
53.1
115
46.9
245
Land Rover
33
52.4
30
47.6
63
Lexus
21
34.4
40
65.6
61
4
100.0
0
0.0
4
323
55.2
262
44.8
585
60
26.8
164
73.2
224
9
32.1
19
67.9
28
Mitsubishi
189
38.3
304
61.7
493
Nissan
211
50.7
205
49.3
416
Peugeot
21
63.6
12
36.4
33
Porsche
5
71.4
2
28.6
7
Renault
5
8.9
51
91.1
56
Skoda
16
41.0
23
59.0
39
SsangYong
40
59.7
27
40.3
67
Subaru
42
42.0
58
58.0
100
Suzuki
331
76.8
100
23.2
431
Toyota
218
13.6
1,390
86.4
1,608
Volkswagen
87
10000 38.3
140
61.7
227
Volvo
18
0 95029.5
43
70.5
61
Other
1
33.3 0 900
2
66.7
3
Mazda Mercedes-Benz Mini
Total
2,780
39.2 0
850
4,305
60.8
7,085
westport thames napier
wanganui gisborne timaru
c t o b e r 2 0 13
7500
new
100.0% 51.2% 34.1%
Blenheim nelson rotorua
27.7% 26.8% 23.7%
9000
2
M
J
F
M
A
M
Used
J J
A
westport Masterton timaru
Used
6000
Used 8545
5000
New
7962
7000
6000
3000
2000
South Island
Nov ‘12
SEP ‘13
Oct ‘13
JuL ‘13
AuG ‘13
JuN ‘13
MAy ‘13
FEb ‘13
APr ‘13
MAr ‘13
JAN ‘13
APr ‘13
1000
4000
FEb ‘13
Oct Nov Dec y Jun Jul Aug Sep Jan Feb Mar Apr Ma
North Island
4000
5000
Nov ‘12
5500
en
North IslaNd versus south IslaNd
8000
DEC ‘12
6000
mo am 1,4 th 11
7000
JAN ‘13
2012
Oc hig
Used Vehicle RegistRatiOns
New versus used
MAr ‘13
6500
PassengeR Vehicle RegistRatiOns
10000
DEC ‘12
2013
S
Biggest decreases
new
ConneCt & engage 7000
I
co
d
Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandoHamilton Thames Tauranga Rotorua
8000
8500
Used imPORt PassengeR Vehicle RegistRatiOns by city
aucklaNd, wellINgtoN, chrIstchurch
4500
hamIltoN, tauraNga, duNedIN, PalmerstoN North
8000
4320
600
4000
30 www.autofile.co.nz
3000
Auckland
2000
500
7500
Hamilton
400
2500
7000
icles sold
3500
hicles sold
*Business sales include rental and government sales, and the totals include passenger cars and SUVs. SOURCE: MIA
Maserati
try
21.6
T
oyota New Zealand is the market in regards to changing aiming to make it 29 years consumer trends. in a row as the country’s “Good luck to Ford with that, number-one brand. but our strategic focus is based “Last year was our 28th on Toyota’s presence in many consecutive year of market different segments,” he says. leadership and we were very “The strength of our brand is not pleased with our results,” says watching the scorecard. Steve Prangnell, general manager “Corolla sales in 2015 were more of sales and operations. than we anticipated and above our He reports registrations of all targets, as were the Hilux’s.” new Toyota and Lexus vehicles When it comes to different came in at 26,967 units for the buyer types, Toyota finished last company’s fourth sales record in a year top of the ladder for private, row while maintaining market share. fleet, rental and government sales. For example, Toyota sold Prangnell notes the marque 17,963 new passenger vehicles in gained plenty of traction with 2015 for an 18.9 per cent share, private buyers and there was a while Lexus finished on 641 and lot of movement in the market, 0.7 per cent. which saw Mazda’s increase. “We launched a number “We are focused on all of products in 2015 and our segments and secured 12.5 per dealerships had a very profitable cent of private registrations – year,” Prangnell told Autofile. good enough to secure number “Our sales even during December one for that.” were great, especially with He adds Toyota’s private sales commercials, and results across are likely to increase further this the market held up. year following the new Hilux’s “When it comes to this year, introduction at the end of 2015, there is no room for complacency the Fortuner SUV’s arrival and the and we intend to have similar launch of more hybrids. volumes. Unless someone else sells Prangnell is also pleased with 27,000 units in 2016, we plan to Lexus’ performance by finishing make it our 29th year at the top.” fourth in the luxury market last The Corolla lost its title as year and exceeding targets New Zealand’s most popular new to claim eight per cent in its The TRUSTED online vehicle to Ford’s Ranger in 2015. segment. Visit www.autofile.co.nz wholesale trading site. autopohave rt.net for more of his views. Prangnell notes it doesn’t the same legacy as the Hilux and t h e As for December, the Motor Whangarei Auckland Hamilton Thames Tauranga Rotorua GisborneIndustry Napier New Plymouth has come second to the likes of Palmerston Biggest increases/Decreases Wanganui North Masterton Wellington Association reports By town year-on-year Blenheim Greymouth4,305 Whangarei Auckland (OctOber Holden’s Commodore in theNelson past, new cars out of 7,085 – 2013 or vs OctOber 2012) Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Biggest increases while what model comes top often 60.8 per cent – were sold to Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin depends on what’s happening businesses. Invercargiin ll Whangarei Auckland Hamilton Thames
un
22 130
Kia
All segments targeted by top-selling marque
SEP ‘13
% Business
JuL ‘13
Business
AuG ‘13
% Private
JuN ‘13
Private
MAy ‘13
Make
Aroun
Passenger Car and SUV Sales by Private/Business split
300
Tauranga
new vehicles
Predictions for the year ahead T
he market for new motor vehicles has peaked and looks set to decline in 2016 from last year’s record sales, according to Infometrics. Mieke Welvaert, an economist with the consultancy company, expects rising prices to hit sales next year. “We expect the New Zealand dollar to weaken further against the Japanese yen through this year,” he says. “That will start pushing up car prices even more and that will be a further factor for why people will be buying less.”
With growth slowing over the past year, Welvaert believes the long-anticipated peak in sales has arrived with waning business and consumer confidence expected to contribute to a decrease in registrations during 2016. He notes growth in sales of new cars continued to soften towards the end of last year with registrations of small vehicles still sliding and now sitting below their peak in April 2015. “Growth in new large-car registrations has been slowing over the past few months and we expect this trend to continue. New car sales are expected to peak early this year.”
Welvaert anticipates a slowdown in sales of light commercials and says the annual total of their registrations is likely to drop below 30,000 by mid2016 as business investment cools. He predicts sales of heavy trucks to continue their “broadly downward trajectory” over the months ahead and medium-sized truck sales to cool more quickly in 2016. “A weaker New Zealand dollar against the yen and softer outlook for goods exports are expected to see freight operators slow down on new purchases.” Last year’s sales of 134,041 new vehicles, according to Motor
NEW VEHICLE SALES BY BUYER TYPE - December 2015
NEW VEHICLE MARKET SEGMENTATION - December 2015
Dec '15
Dec '14
Mth %
2015 YTD
2014 YTD
% YTD
Dec '15
Dec '14
Mth% diff
2015 YTD
2014 YTD
Passenger
3,460
3,960
-12.6
49,077
52,471
-6.5
Passenger
3,460
3,960
-12.6
49,077
52,471
-6.5
Private
1,440
1,287
11.9
18,328
18,932
-3.2
SUV
3,625
2,795
29.7
45,405
37,660
20.6
Business
1,289
1,390
-7.3
20,258
23,004
-11.9
Light Commercial
2,555
2,410
6.0
33,683
31,408
7.2
Heavy Commercial
517
365
41.6
4,933
4,969
-0.7
88
46
91.3
943
641
47.1
10,245
9,576
7.0
134,041
127,149
5.4
Gov’t
147
88
67.0
2,231
2,292
-2.7
Rental
584
1,195
-51.1
8,260
8,243
0.2
SUV
3,625
2,795
29.7
45,405
37,660
20.6
Other Total market
Private
1,340
1,034
29.6
17,200
14,552
18.2
Micro
131
134
-2.2
1,988
1,841
8.0
1,555
1,152
35.0
20,353
18,548
9.7
Light
1,103
1,256
-12.2
14,395
14,592
-1.4
43
46
-6.5
719
743
-3.2
Small
1,392
1,660
-16.1
19,611
22,689
-13.6
86.9
Medium
407
536
-24.1
6,979
6,948
0.4
Large
205
259
-20.8
4,126
4,384
-5.9
4
23
-82.6
215
313
-31.3
44
58
-24.1
684
700
-2.3
34
411.8
1,079
1,004
7.5
662
25.2
13,125
10,245
28.1
1,544
1,168
32.2
16,407
14,144
16.0
1,209
939
28.8
15,393
12,819
20.1
26
65.4
480
452
6.2
37
108.1
813
581
39.9
687
22.0
7,133
3,817
2,555
2,410
6.0
33,683
31,408
7.2
700
684
2.3
8,457
7,481
13.0
1,611
1,581
1.9
22,622
21,834
3.6
xxxxxxxxx
Industry manages levels well Annual high for stockpile Business
dropped to this year’s low of Gov’tthat 120 18,653 in January.
tock levels of new cars have increased every month except one this year, with ctober’s total of 29,509 being the
David Crawford, chief executive officer of the Motor Industry Association (MIA), says current models aren’t sitting around in
Rental
124
57
9,165
stock levels quite well and does this Private 3,480 day in, day out,” he told Autofile.
3,005
Sub Totalstock for too long.
“The industry tends to manage
“My data suggests this is a cyclical thing and levels were no higher in previous years, but they
Business
4,455
4,123
310
222
Gov’t
Dealer stock of new cars in New Zealand - Oct 2013
Rental
NeW CArS SoLd
Imported
1,395
dAyS AVerAge SALeS per StoCk dAy - ytd At hANd
StoCk
VArIANCe
12,984 Heavy Commercial (2,473) 10,511
242
43
223
55
MIA stock estimate as at end of December 2011 7,368
5,633
1,735 729
12,975
218
59
Apr ‘12
6,499 7,228 Other 5,430 6,285
12,246
855
13,830
209
66
May ‘12
7,742
5,942
1,800
15,630
205
76
7,142
1,728
17,358
211
8,870 Total 7,894
6,208
1,686
19,044
52.0% ‘12 Aug
8,589
5,959
2,630
21,674
207
105
Sep ‘12
6,828
6,637
191
21,865
209
105
Oct ‘12
8,155
7,336
819
22,684
211
107
Nov ‘12 41.7% Dec ‘12 20.0% ytd total 12.4%
8,953
6,484
2,469
25,153
212
119
6,102
1,714
26,867
211
128
76,871
13,883
25,594
27,077
216
28,159
214
132
509
28,668
220
1,654
30,322
220
130 21 Oct 80 138
4,237 Yokohama 6,828
6,347
Jun ‘13
8,051
7,542 Nagoya
Jul ‘13
8,423
Aug ‘13
11,065
Sep ‘13
7,006
Oct ‘13
9,362
43,985
734
66.6
121,539
5.5
63,233
63,386
-0.2
4,331
4,394
-1.4
-23.1
16,616
41.6
4,933
91.3
943
7.0
134,041
SUV Medium
SUV Large gone up. has
There have been two major increases during 2013 – with variances between imports and sales of 3,121 in April and 2,507 in May. Graeme Macdonald, chairman of the North Island branch of the Imported Motor Vehicle Industry Association, says the current stockpile should correct itself – as it normally does. “If the monthly stockpile was 10,000 on a regular basis it means there are solid holding numbers,” he told Autofile. “North of that and we would be looking at an
8.1
Christchurch. “If you add in Dunedin and Wellington, these centres cover a large proportion of the population and all have strong economies.” Year to date, 77,438 new cars have been imported and 68,612 have been registered to give a variance of 8,826 so far this year. Days with stock at hand has been steadily increasing from 78 in
SUV Small
7,494 in September. 7.4 40,965 other
39.6
other centres. “But 80 per cent of New Zealand’s population is in Auckland and
6,769
238
26,065
223
34,559
220
7,272
(266)
34,293
222
Auckland 1,400 7,962
35,693
226
-
-
-
-
-
-
125
120
20 Oct
100
157 22 Oct 60
12,794
29.9
4,969
-0.7
641
47.1
127,149
5.4
“October and November are normally difficult for the industry, so the stockpile tends to go up,” says Macdonald. “But trade swings up over Christmas and the holidays, so it goes down. “December and January are good months for sales because people take time off work, the kids are off school and people may have Christmas bonuses or holiday pay. “It’s a time when Kiwis tend to make financial decisions, so dealers need to have plenty of stock to
SUV Upper Large Light Buses Vans
16 Nov
PORT TO DOOR SERVICE
INCLUDIN G: WE BE LOOKING AT SHOULDN’T
MPI Border inspection Odometer certification Digital Photography for prior sales in NZ
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with 30 to 40 cars. “They can suddenly be selling without having bought for a few weeks and being 10-15 units down makes them more susceptible,”
43
says Macdonald. “Dealers then jump online to buy more from Japan, but that’s
77
Heavy Commercial
always been the way. “You can oversupply when buying conditions are good, but the marketplace normally corrects itself by pulling back from Japan or selling down. The numbers might drop for a month or two before trundling up again. “There’s no magic supply-chain miracle. When it’s slow, it tends to be slow for everybody. If you can get good supply with a good exchange rate, everyone benefits.”
379
280
35.4
5,059
5,399
-6.3
8.0
10,539
9,596
9.8
-4.4 206
26
17,272
15,832
9.1
210
21
4,933
4,969
-0.7 47.1
Dealer stock of used car imports in New Zealand - Oct 2013
848
Imported
Total stock at the end of December Pick Up/Chassis Cab 4x4 1,251 3,191 Jan ‘12
Other
Total market
Dec
oct
nov
sep
JUL
aUG
JUn
apr
may
Feb
mar
8,826
0
Jan
20
Dec
40
-
7 Nov
oct
158
13- Nov
nov
68,612
Lyttelton 82,380
-
154
829
Pick Up/Chassis Cab 4x2 2012
go to www.autofile.co.nz/subscribe for the latest industry news TARGETED ADVERTISING SPACE
Wellington -
sep
77,438
6,800 5,908 Osaka
24,837
JUL
-
(2,030)
Port 1,228 5,799Calls
aUG
Dec ‘13
290
15.8
1.6
Days of stock
(471)
7,429
26 | www.autofile.co.nz
128,165
1,359
LATEST SCHEDULE
1,082
7,391
May ‘13
-
180
1,483
6,329
Apr ‘13
Oct ‘13
9,576
160 104 Hoegh Xiamen 117 140 115V20 222
Mar ‘13
495
1,223
5.2
T
Subscribe - FREE 26,867
7,385
7,027
Nov ‘13
dAyS AVerAge SALeS per StoCk dAy - ytd At hANd
StoCk
VArIANCe
Feb ‘13
h
117.5
hot, SUVs are. “People in the housing market are refinancing their mortgages to buy big-ticket items especially when they are confident about keeping their jobs.” All that said, some of the regional centres, such as Hawke’s Bay and Palmerston North, aren’t showing as much growth as
JUn
Imported
2013 predicted sales
1,381
174
units, are more static with their holding not changing too much. A drop of 50 units may not be too drastic. But stock can vary enormously by proportion on yards
Feb ‘12 Mar ‘12
517 6,504 4,920
785
USed ImportS VArIANCe SoLd
2011
StoCk
1,308 (3,184) 6,375
8,579
(1,080)
4,315
6,000 6,429
36575
5,395 4,390
dAyS AVerAge SALeS per StoCk dAy - ytd At hANd
209 41.6
21
88
46
91.3
943
641
10,245
9,576
7.0
134,041
127,149
5.4
17%
850 wds
Payment protection
NeW CArS SoLd
5,355
ytd total
36.4
Sports
1996, it has ebbed and flowed.” Used car stock levels are traditionally based on what’s happening in Japan and what consumers are buying here. Conditions there have improved recently and the exchange rate
he amount of stock held by used car dealers during October was the highest monthly total of the year. There were 10,374 units imported last month with a variance of 1,829 on 8,545 sales. The number of cars in stock amounted to 9,323 compared to
25 206 5,126 736 match demand. 5,877 6,613 Apr ‘12 29 208 6,026 900 6,793 “When the market’s down in 7,693 May ‘12 33 208 6,789 763 6,184 Japan, stock is hard to get. When 6,947 Jun ‘12 26 209 5,483 (1,306) 6,641 5,335 it’s buoyant, you tend to buy what Jul ‘12 oversupply issue. 21 210 4,402 (1,081) 6,621 5,540 you can because you don’t know Aug ‘12 “There was good buying in Japan 18 209 3,686 (716) 6,222 5,506 what will be available next time. Sep ‘12 March, and we saw high arrival New Passeinnger 12 211 2,507 Vehic (1,179) 6,867 leMay 5,688 Sales also need to bear in Oct ‘12 “Dealers by and June. Make April, in numbers Novem October. in 131 to ber 2013 weeks to New January 18 213 3,810 1,303 7,183 8,486 to six four ‘12 nger Vehic Nov takes Passe it mind at more occurs stockpile “The Make le Sales7,119 Last year 90,754 units were by Mode 14 Nov '13 215 (705)l - 3,105 Nov '12 Novem Nov '13 6,414 ber ” +/‘12 Dec Japan. 2013 % from stock get 2013 Mkt certain times of the year. Since Mkt Share 2013 total imported and there were 76,871 (5,474) 78,311 Share 72,837 Model say 300 Make ytd total Toyota Larger operations, of in Nov '13 Nov '12 +/back into the I came1746 Nov Mkt 2013 2013 Mkt 1190industry46.7 % sales for a variance of 13,883. 23.4% Share total 14670 19.3% Share dAyS Holden AVerAge Toyota Corolla 685 USed ImportS 673 StoCk SALeS per StoCk 1.8 35.5 Imported626 SoLd462 VArIANCe 9.2%import8102 cars 8.4% dAy5283 2013 Days stock in nZ - UseD hANd 10.7% - ytd At 6.9% Ford Toyota Days stock in nZ - new cars RAV4 618 596 289 3.7 80 261.3 8.3% 3105 3.9% 2521 6519 at the end of December 2012 8.6% 3.3% Hyundai 180 Holden Total stock Commodore 572 624 260 -8.3 0.7 171 239 7.7% 176 52.0 (2,929) 7,397 4,468 6695 3.5% 2399 8.8% 3.2% Mazda Mazda Jan ‘13Cx-5 160 512 6 243 485 1,501 1,325 6,922 239 8,247 5.6 141 Feb ‘13 6.9% 69.5 5447 3.2% 1989 7.2% Sepang Express Morning Miracle Nissan 11 243 2.6% Toyota Mar ‘13 2,772 1,271 7,581 Liberty 140 382 8,852 yaris 281 35.9 227 267 -15.0 5.1% 3342 4.4% 5,893 2235244 2.9%24 3,121 3.0% 7,418 Suzuki V9 10,539 V5 Suzuki Apr ‘13 V1 Swift 120 376 405 -7.2 2013 218 34 250 5.0% 254 8,400 2,507 2.9% 8,460 -14.2 4436 10,967 May ‘13 5.8% 2750 Mitsubishi 3.6% Ford 351 34 Mondeo 252 272 30 Oct 8,627 227 7,862 29.0 8,089 15 Nov 184 Jun ‘13 4.7% 29100Nov 98 87.8 3661 2.5% 1201 261 1.6%29 4.8% Honda 7,621 (1,006) Hyundai Jul ‘13 9,629 310 8,623 ix35 312 -0.6 80 168 4.2% 81 107.4 (13) 2.3% 2994 31 Oct 3.9% 7,608 1338 263 1.8% 29 16 Nov Volkswagen 8,648 8,635 30 Nov ‘13 Aug Mitsubishi 288 261 Lancer 2012 10.3 29 168 262 3.9% 60 7,494 (114) 7,615 84 3527 7,501 100.0 Sep ‘13 4.6% 2.3% 894 Toyota 202 1 Nov 263 1.2% 35 17 Nov Kia 240 9,323 1,829 8,545 -15.8 1 Dec 2013 10,374 ‘13 Oct Camry 2.7% 168 131 40 2563 28.2 3.4% BMw - 1.7% - 2.3% - 1270 172 Holden ‘13 NovCaptiva 178 -3.4 2.3% 135 17 Nov 1861 319 - -57.7 4 Dec 20 2.4% 19 Dec - 1.8% - 2039 Subaru ‘13 2012 2.7% 165 Volkswagen DecGolf 153 7.8 2.2% 134 80,077 30.1 6,218 1645 86,295 103 ytd total 2.2% 0 1.8% 1469 23 Nov 1.9% 11 Dec Audi 163 Toyota 26 Dec 150 Highland 96,145 8.7 er sales predicted 2013 2.2% 118 1748 79 2.3% 49.4 Mercedes-Benz 1.6% 1092 1.4% 128 Ford 82 Focus 56.1 29 Nov 1.7% 11 Dec Peugeot 114 1398 29 Dec 212 -46.2 1.8% 1.5% 1429 108 1.9% Honda 60 80.0 Jazz 1.4% 113 1001 1.3% Jeep 1.5% COMMERCIAL STATISTICS76 48.7 922 92 OF THE NEW AND USED 1.2% 65 SPONSORSHIP Ford 41.5 Kuga 1.2% 775 1.0% 18 522.2 FOR YOUR BUSINESS 112 Ssangyong AVAILABLE PAGES IS NOW 1.5% 952 86 1.3% 49 Mazda 75.5 Mazda3 1.2% 724 109 1.0% 151 -27.8 Dodge 1.5% 1537 64 2.0% 46 le.co.nz Toyota 39.1all enquiries 775 or email on 021 455 Aurionbrian@autofi107 0.9% contact For 478 Brian0.6% 23 Skoda 365.2 YOUR BUSINESS? 1.4% 447 63 0.6% 56 Holden 12.5 Cruze 0.8% 654 106 0.9% 80 Lexus 32.5 1.4% 1925 54 2.5% 44 Hyundai 22.7 0.7% Santa Fe 508 103 0.7% www.autofile.co.nz | 27 Land Rover 261 -60.5 1.4% 1847 51 22 2.4% 131.8 Honda 0.7% Civic 443 0.6% 100 Mini 115 -13.0 1.3% 44 852 43 1.1% 2.3 Mitsubis hi 0.6% Outland 474 er 0.6% 97 Chery 118 -17.8 1.3% 1258 34 21 1.7% 61.9 Hyundai 0.5 apr
90,754
Jan ‘13
1805
Christchurch are boosting sales. “Trades people are upgrading their vehicles,” says Crawford. “Although passenger cars aren’t so
People Movers
TWO SAILINGS PER MONTH JAPAN TO NZ
7,816
Total stock at the end of December 2012
6740
46
may
2013
88
82 10,245 91
209
365
There were 54,404 sales in 2009, 62,029 in 2010, 64,019 in 2011 and 76,871 in 2012, and the MIA is predicting about 82,000 passenger vehicle and SUV sales this year. “We’re looking at about 30,600 light commercials and we’re on track for 112,000 or 113,000 new vehicle sales overall.” Business confidence being high and strong regional economies in Auckland and
Feb
‘12 Jun 95.5% ‘12 Jul 64.9%
517 during 2012.
mar
Feb ‘12
7,499
Jan
5,026
1,815
Days of stock
Jan ‘12
88
9,640
ghest of 2013. There were 7,962 sales last onth, also this year’s biggest mount, while the variance was 400 with 9,362 units imported – he second highest amount after 1,065 imports in August. The total stock figure at the nd of December was 20,683 and
Mar ‘12
did come down after the global financial crisis [GFC]. “Stocking levels then increased again and they respond to the number of new vehicles sold and the rate at which they are sold. “They basically go up when sales go up, but I’m not so sure about the days stock is held for being longer and can’t explain that. “Average sales per day came down during the GFC and before that they were much higher.” If 80,000 vehicles are sold one year and 100,000 are sold the following year, the average sales per day should be higher – and the MIA is expecting more new vehicles to be sold this year than
Upper Large
Finance
Private
12% 14% 13%
GAP
Light Commercial
563
Insurance
Rental xxxxxxxxxxx
S
% YTD
Business Gov’t
2012
Industry Association statistics, set a record and came in at 6,892 units – or 5.4 per cent – ahead of 2014’s. It was the first time they have gone through the 130,000-unit mark. The market for new cars, excluding SUVs, came in at 49,077 units last year, which was down by 6.5 per cent from 52,471 in 2014. Sales of SUVs, however, jumped by 20.6 per cent from 37,660 units to 45,405. Registrations of light commercials increased by 7.2 per cent to 33,683 in 2015 from 31,408 in the year before, while the market for heavy commercials fell by 0.7 per cent to 4,933 units from 4,969.
22% 9% 8500
www.autofile.co.nz 31 8000
16%
7500
New P
new commercial sales
Ranger secures national title T
he outgoing managing director of Ford New Zealand is over the moon that the marque’s popular ute has claimed the crown of best-selling new vehicle of 2015. The Ranger knocked the Corolla off its perch to scoop the accolade by notching up 608 registrations in December to edge out the Toyota by almost 300 units by the end of the year. “We always said we would leave it up to the customers to decide, and Kiwis have well and truly decided,” says Corey Holter. He adds taking out the top spot is “a huge milestone for the vehicle and company”. “The designers, engineers and everyone at Ford are extremely happy to reach such a goal,” says Holter, who returned to the US last week to become manager of car group marketing with the marque in North America. “It’s certainly good to take the number-one position, but what’s more satisfying for us is knowing that the Ranger is what Kiwis are driving.” Utilities dominated the ladder for sales of new vehicles last year
2013
4250 4000
2014
3750
2015
3500 3250 3000 2750 2500 2250 2000 1750 Jan Feb Mar Apr May Jun
with three models securing topfive finishes. The Ranger sold 6,832 units and the Corolla 6,516. Toyota’s Hilux came third overall on 5,632, Holden’s Colorado fourth on 3,594 and the RAV 4 fifth on 3,522. This emphasised how strongly the market for new utes performed in 2015, while registrations of commercials came in at 39,145 – up by 2,415 units, or by 6.6 per cent, compared to 2014. Within that part of the market, the Ranger’s share totalled 17.5 per cent, the Hilux’s was 14.4 per cent and the Colorado’s was 9.2 per cent. Fourth spot on the ladder went
Dec'15
Dec'14
+/- %
Dec'15 Mkt Share
Jul Aug Sep
Oct Nov Dec
to the Nissan Navara with 3,147 sales and a market share of eight per cent. Toyota’s Hiace came fifth and was the country’s best-selling van on 2,496 units and 6.4 per cent. Toyota topped 2015’s ladder for marques with 8,389 sales, which amounted to 21.4 per cent of all new commercials registered. Ford had to settle for second spot on 7,769 and its share was 19.8 per cent. Third place went to Holden with 3,781 units and 9.7 per cent, while Nissan was fourth with 3,147 and eight per cent. The top five was rounded off by Isuzu with 7.2 per cent and 2,819 units. As for last month, 3,136
New Commercial Sales by Model - December 2015
New Commercial Sales by Make - December 2015 Make
commercial vehicles were sold. The total was up by 339 registrations – or by 12.1 per cent – compared to the same period in 2014 for the highest number of sales ever during a December. The Ranger sold 608 units in December, which was down by 13.6 per cent compared to the corresponding month in 2014. The Hilux came second on 419 – a decrease of 4.3 per cent – and the Colorado was third on 313 thanks to a jump of 52.7 per cent. Ford topped December’s ladder with 659 registrations although that was down by 13.4 per cent on the same month of 2014. It was followed by Toyota with 620 sales and Holden on 329. Alistair Douglas, of Rotorua Toyota, says there has been “an awful lot of interest” in the all-new Hilux. “The new generation of utes that came through in the mid2000s became so driveable on roads they could be doubled up as family cars,” he says. “This would explain their popularity and increase in sales. People are dressing them up with bull-bars, canopies and alloys.”
New Commercial Sales - 2013-2015
4500
2015 YEAR TO DATE
2015 Mkt share
Make
Model
Dec'15
Dec'14
+/- %
Dec'15 Mkt Share
2015 YEAR TO DATE
2015 Mkt share
Ford
659
761
-13.4
21.0%
7,769
19.8%
Ford
Ranger
608
704
-13.6
19.4%
6,832
17.5%
Toyota
620
584
6.2
19.8%
8,389
21.4%
Toyota
Hilux
419
438
-4.3
13.4%
5,632
14.4%
Holden
329
228
44.3
10.5%
3,781
9.7%
Holden
Colorado
313
205
52.7
10.0%
3,594
9.2%
Isuzu
256
125
104.8
8.2%
2,819
7.2%
Nissan
Navara
211
198
6.6
6.7%
3,147
8.0%
Nissan
211
198
6.6
6.7%
3,147
8.0%
Toyota
Hiace
193
130
48.5
6.2%
2,496
6.4%
Mitsubishi
169
158
7.0
5.4%
2,504
6.4%
Mitsubishi
Triton
169
132
28.0
5.4%
2,432
6.2%
D-Max
Mitsubishi Fuso
122
73
67.1
3.9%
753
1.9%
Isuzu
Mercedes-Benz
117
124
-5.6
3.7%
880
2.2%
Mercedes-Benz Sprinter
112
78
43.6
3.6%
1,699
4.3%
104
103
1.0
3.3%
745
1.9%
Mazda
98
101
-3.0
3.1%
1,382
3.5%
Mazda
Ldv
72
8
800.0
2.3%
473
1.2%
Isuzu
Bt-50
98
101
-3.0
3.1%
1,382
3.5%
F Series
75
17
341.2
2.4%
484
1.2%
V80
69
8
762.5
2.2%
429
1.1%
57
30
90.0
1.8%
345
0.9%
Volkswagen
66
68
-2.9
2.1%
1,273
3.3%
Ldv
Hino
61
57
7.0
1.9%
660
1.7%
Mitsubishi Fuso Canter
Fiat
57
25
128.0
1.8%
664
1.7%
Fiat
Ducato
54
20
170.0
1.7%
545
1.4%
Foton
54
49
10.2
1.7%
534
1.4%
Mitsubishi Fuso Fighter
54
29
86.2
1.7%
251
0.6%
Ssangyong
50
73
-31.5
1.6%
687
1.8%
Ssangyong
Actyon Sport
50
73
-31.5
1.6%
687
1.8%
Renault
36
1
3500.0
1.1%
102
0.3%
Ford
Transit
49
55
-10.9
1.6%
887
2.3%
47
-6.4
1.4%
826
2.1%
1 3600.0
1.2%
136
0.3%
Hyundai
33
26
26.9
1.1%
662
1.7%
Volkswagen
Amarok
44
Ud Trucks
21
18
16.7
0.7%
262
0.7%
Isuzu
C Series
37
Iveco
16
8
100.0
0.5%
129
0.3%
Hyundai
iload
31
22
40.9
1.0%
645
1.6%
Freightliner
12
16
-25.0
0.4%
117
0.3%
Foton
Tunland
31
41
-24.4
1.0%
467
1.2%
77
96
-19.8
2.5%
2,158
5.5%
Others
3,136
2,797
12.1
100.0%
39,145
100.0%
Others Total
32 www.autofile.co.nz
Total
358
365
-1.9
11.4%
5,484
14.0%
3,136
2,797
12.1
100.0%
39,145
100.0%
used commercial sales
City tradies looking to buy vans A
dealership, which has been trading in Auckland for more than 20 years, is predicting positive sales of used light commercials in the coming year. Based on demand for quality used vehicles from October to December 2015, Carol McMullen, sales and finance manager of Pearce Brothers’ commercial vehicle centre in Onehunga, says this is partially due to changing tastes across the sector. “Tradesmen were in vans originally and then they got into utes, but they are now going back to vans again,” she told Autofile. “A lot of them are doing that because – and this is a generalisation – vans are more spacious. We are finding that builders are especially keen on space with the amount of gear they carry.” The business’ client base is still firmly tradespeople despite the growing trend in the lightcommercial market for families to upgrade to utilities from sedans. “It’s still men in the 20 to 30-years age bracket buying utes as their main vehicle, but we are noticing a few families are now
2013 2014 2015
Jan Feb Mar Apr May Jun
interested,” explains McMullen. Utility vehicles are still overall the most popular to move off the yard – despite the changing trends. Pearce Brothers’ business in Onehunga, which has 30 units at any given time and reported good sales in 2015, is part of a seven-yard group. “Last year was very good for us,” says McMullen. “This was down to price range and I’ve found what works here is good pricing options. Ours is from about $12,000 to $30,000.” Stocking the yard was more challenging in 2015 with demand for light commercials being high, but she kept levels steady with trade-ins from franchises and accessing units
Used Commercial Sales by Make - December 2015 Make
Dec'15
Dec'14
+/- %
difficult to buy for across all of Pearce Brothers’ yards because they retain their values. Looking forward, she sees a positive year ahead. “There’s a lot more buoyancy and a positive feeling around at the moment. When that is there, people start buying again. There will always be fluctuations in markets, which goes up and down.” There were 8,838 used commercial vehicles sold in New Zealand last year, which was an increase of 11.3 per cent compared to 7,943 in 2014. As for the national statistics, Toyota sold 4,221 units during 2015 for a market share of 47.8 per cent. Its Hiace vans made up 34.4 per cent of overall registrations in this sector on 3,040 units. Nissan came second on the marques ladder with 1,699 units for a market share of 19.2 per cent, while Mazda finished third with 503 and 5.7 per cent. The Nissan Caravan was runnerup in the models chart with 721 sales to claim a market share of 8.2 per cent, and Mazda’s Bongo came third on 389 and 4.4 per cent.
Used Commercial Sales - 2013-2015
900 850 800 750 700 650 600 550 500 450 400 350 300
Dec'15 Mkt Share
Jul Aug Sep
Oct Nov Dec
from Japan, although the latter became difficult to source from. “Our main importing activity from Japan is around Toyota Hiaces and older four-wheel drives, such as Land Cruisers. “It was very hard to get stock in from Japan last year. For example, one stage last year we couldn’t get Hiaces as they were just too expensive. “That was solely down to the exchange rate, but 2016 is going to get better based on figures from last year.” McMullen adds that utilities are hard to purchase and the commercial sector is the most
Used Commercial Sales by Model - December 2015
2015 YEAR TO DATE
2015 Mkt share
Make
Model
Dec'15
Dec'14
+/- %
Dec'15 Mkt Share
2015 YEAR TO DATE
2015 Mkt share
34.4%
Toyota
272
365
-25.5
37.2%
4,221
47.8%
Toyota
Hiace
190
272
-30.1
26.0%
3,040
Nissan
146
139
5.0
20.0%
1,699
19.2%
Nissan
Caravan
60
58
3.4
8.2%
721
8.2%
Isuzu
52
30
73.3
7.1%
390
4.4%
Fiat
Ducato
45
18
150.0
6.2%
158
1.8%
Ford
48
38
26.3
6.6%
313
3.5%
Isuzu
Elf
35
17
105.9
4.8%
239
2.7%
Fiat
45
18
150.0
6.2%
159
1.8%
Mazda
Bongo
29
20
45.0
4.0%
389
4.4%
Mazda
36
24
50.0
4.9%
503
5.7%
Toyota
Dyna
25
29
-13.8
3.4%
336
3.8%
Hino
20
9
122.2
2.7%
227
2.6%
Nissan
Vanette
21
30
-30.0
2.9%
333
3.8%
Mitsubishi
17
15
13.3
2.3%
341
3.9%
Nissan
Atlas
17
8
112.5
2.3%
168
1.9%
Chevrolet
16
16
0.0
2.2%
217
2.5%
Nissan
Navara
17
14
21.4
2.3%
137
1.6%
Holden
13
9
44.4
1.8%
169
1.9%
Ford
Ranger
17
9
88.9
2.3%
98
1.1%
Dodge
10
10
0.0
1.4%
57
0.6%
Toyota
Regius
16
21
-23.8
2.2%
313
3.5%
Volkswagen
8
9
-11.1
1.1%
79
0.9%
Toyota
Hilux
14
17
-17.6
1.9%
169
1.9%
Mercedes-Benz
7
3
133.3
1.0%
37
0.4%
Hino
Dutro
13
5
160.0
1.8%
128
1.4%
Daihatsu
5
2
150.0
0.7%
18
0.2%
Ford
F150
13
8
62.5
1.8%
64
0.7%
Daf
4
1
300.0
0.5%
22
0.2%
Nissan
Nv200
13
14
-7.1
1.8%
211
2.4%
11
14
-21.4
1.5%
210
2.4%
9
10
-10.0
1.2%
52
0.6%
Gmc
3
2
50.0
0.4%
45
0.5%
Toyota
Toyoace
Hyundai
3
1
200.0
0.4%
8
0.1%
Dodge
Ram
Kenworth
3
1
200.0
0.4%
39
0.4%
Ford
Falcon
8
3
166.7
1.1%
51
0.6%
Renault
3
2
50.0
0.4%
19
0.2%
Mitsubishi
Canter
7
5
40.0
1.0%
180
2.0%
Triton
2
0
200.0
0.3%
3
0.0%
Mitsubishi
7
2
250.0
1.0%
60
0.7%
Others
18
27
-33.3
2.5%
272
3.1%
Others
164
147
11.6
22.4%
1,781
20.2%
Total
731
721
1.4
100.0%
8,838
100.0%
Total
731
721
1.4
100.0%
8,838
100.0%
Caterpillar
www.autofile.co.nz
33
Regional factors affect stock levels stocks of sedans are nowhere near the turnover they used to be. “Having said that, the new Corolla is starting to make its mark on the market and a lot of that’s because of companies buying fleet vehicles. “That model offers a great package. It’s a similar size to the old Coronas we used to have in the 1990s. It also has the economy and performance of smaller cars.” Bowater reports Toyota’s Hilux is bolstering his overall sales figures with “stock moving quickly out the door”. He says: “We are really pleased to have the new ute in stock and it has gone gangbusters. “We were fortunate to have had some pre-sales on the board and customers were waiting for the vehicle to come out, so we have certainly hit the ground running.” Bowater believes regional factors have also impacted on stock levels and choices across models, although
he reports the local market has been fairly buoyant and steady. “It was interesting last year with many ups and downs. For Nelson, I think the advantage of a sheltered economy stood us in good stead. Our stock levels have been relatively easy to maintain in that respect.” There were 102,174 new passenger vehicles imported during 2015 and 95,097 registered for a variance of 7,077 in favour of imports. The biggest month of last year for imports was August with 11,675 units while the most sales – 9,634 – were recorded in October. During December, registrations of new cars came in at 7,110 and the total crossing our wharves amounted to 9,131 for a variance of 2,021 in favour of imports to create a national stock figure of 57,783. The level of unsold stock has gone up by 14 per cent compared to where it was sitting in December 2014.
Dealer stock of new cars in New Zealand 50,706
- 12-MONTH AVERAGE
Days stock at hand
220
248
204
200
Jan ‘15
6,713
9,010
(2,297)
48,409
250
193
Feb ‘15
7,172
7,057
115
48,524
252
193
Mar ‘15
7,569
8,075
(506)
48,018
252
191
Apr ‘15
7,746
6,373
1,373
49,391
252
196
May ‘15
9,395
6,843
2,552
51,943
253
206
Jun ‘15
8,297
9,021
(724)
51,219
254
202
Jul ‘15
8,842
7,272
1,570
52,789
254
207
Aug ‘15
11,675
7,752
3,923
56,712
256
221
Sept ‘15
8,254
8,835
-581
56,131
258
218
Oct ‘15
8,623
9,634
-1,011
55,120
260
212
Nov ‘15
8,757
8,115
642
55,762
260
215
Dec ‘15
9,131
7,110
2,021
57,783
261
222
102,174
95,097
7,077
10.7%
4.6%
14.0%
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Dec
Nov
Oct
Sept
Aug
JuL
40
Jun
Change on Dec 2014
180
May
Year to date
December 2014 — December 2015
APR
1,451
DAILY SALES
Feb
6,797
Stock
JAN
8,248
Dec ‘14
Variance
Dec
Registered
Days of stock
CAR Sales Imported
There was an increase in sales of 4.6 per cent when comparing last month with a year earlier and a jump of 10.7 per cent in imports. Daily sales during December – when averaged out over the previous 12 months – came in at 261 compared to 248 by the same time in 2014 – meaning 13 more units were sold daily. The amount of stock at hand has climbed from 204 days to 222. Dean Nicholson is chief executive officer of Nicholson Autos, which has branches in Morrinsville, Matamata and Whakatane. He’s positive stock for his Holden and Suzuki franchises will continue to be easy to source, and levels at his dealerships will meet customer demand. “All of our yards experienced different sales last year, but we’re pretty positive. Overall, we’ve had no real issues supplying our customers with the stock they wanted.”
Days stock in NZ - new Cars
Mar
T
he now-standard practice of selling cars over the internet has impacted on stock levels and sales in a manner unprecedented in previous years. That’s the view of Tony Bowater, chief executive officer of Bowater Toyota in Nelson, which has been operating for about 65 years. “The internet is having a huge impact on what we stock,” he told Autofile. “It’s enabling us to be out in the wider world and New Zealand really is your market today.” He says stock is adjusted according to demand and that has been focused on SUVs with other segments taking hits because of this. Although some inroads to making sedans attractive purchases are still being considered, their stock levels vary depending on consumer demand. Bowater says: “The Toyota brand is ever-evolving and we have noticed
Quality cars difficult to source T
he total number of used passenger vehicles crossing the border during 2015 came in at 150,862 while 143,642 were registered for the first time for a variance of 7,220 in favour of imports. In addition, more units were imported into New Zealand last month than sold – 14,725 compared to 12,598. This took the national level of unsold stock to 25,683 used imported cars by the end of December and it has jumped by 39.1 per cent since this time last year. Average daily sales have climbed from 356 to 394 over the same timescale, which means there were 38 more registrations per day in 2015 compared to 2014 – an increase of 10.7 per cent – while stock at hand has gone up by 13 days from 52 to 65. Comparing last month with December 2014, there have been 15
per cent more used cars imported and 1.2 per cent more sold. Ross Brown is the sales manager of Greenfield Motors in Greymouth, which holds a Suzuki franchise and stocks a wide range of used vehicles. He describes the market as being pretty flat with “nothing really changing, but things ticking over”. “I wouldn’t say we are breaking any records by any stretch of the imagination,” Brown told Autofile. “We buy cars locally, have tradeins and purchase from Japan. The dollar has come back up again, which makes it a bit easier to obtain stock, but we took a huge hit buying from there. “When the dollar was down, it was tough to get stock in, but you make up for that by buying locally. We’ve had more interest in internet trade and you have to be competitive with that.” Alan Burrell, of Redwood Motors in Rotorua, says: “It’s hard to get
good stock in and we’ve been paying top dollar for it. “But the other issue is that there is an awful lot of stock around the country unsold, so you have to be conscious of what’s available, what it was bought for, what the exchange rate was and so on. “Also winter sales probably dropped somewhat, so there is a surplus of stock from the seasonal difference. “We have small Japanese cars, some mid-priced European vehicles accessed from Japan and light commercials. “As for European marques, we have Porsches, Mercedes-Benzes and Volvos, but we only buy them if the price is right. Sometimes whether they move or not is simply down to colour.” Ken Williams, of Coast Wide Honda, says: “We are selling our used stock pretty well and managed to keep up with that okay last year.
Dealer stock of used cars in New Zealand
Days stock in NZ - Used Imported Cars
CAR Sales
180
Imported
160 140
100
December 2014 — December 2015
60 40 December 2013 — December 2014
20
Dec ‘14
12,800
Jan ‘15 Feb ‘15
Dec
Nov
Oct
Sept
Aug
JuL
Jun
May
APR
Mar
Feb
JAN
marac.co.nz
Registered
Variance
Stock
18,463
DAILY SALES - 12-MONTH AVERAGE
Days stock at hand
356
52
12,448
352
10,139
11,791
-1,652
16,811
362
46
9,963
10,572
-609
16,202
366
44
Mar ‘15
14,964
12,313
2,651
18,853
372
51
Apr ‘15
16,155
11,038
5,117
23,970
376
64
May ‘15
14,531
12,415
2,116
26,086
379
69
Jun ‘15
12,864
12,415
449
26,535
384
69 63
Jul ‘15
11,944
13,891
-1,947
24,588
389
Aug ‘15
12,129
12,061
68
24,656
391
63
Sept ‘15
8,673
11,667
-2,994
21,662
392
55
Oct ‘15
12,388
11,149
1,239
22,901
393
58
Nov ‘15
12,387
11,732
655
23,556
393
60
Dec ‘15
14,725
12,598
2,127
25,683
394
65
150,862
143,642
7,220
Year to date
0
Dec
Days of stock
120
80
“Despite the hits we have taken in Greymouth, I think sales overall are pretty positive.” Dean Nicholson, dealer principal of Nicholson Autos in Matamata, says: “We have struggled in used car stock and it has been hard to get good used vehicles onto our yard. “Trade-ins are less now because people are buying cars themselves or passing them on down the line. We stock our used yard through a few imports, but it has been hard to get hold of good vehicles.” Nathan McColl, of Ross McColl Cars in Levin, says: “Our stock levels have come down a little. You have to pay reasonably good money for reasonably good stock or, at least, pay a bit more for better quality cars. “Our stock is priced at about $10,000 on average. We try to specialise in slightly lower kilometres than other people in the area.”
Change on Dec 2014
15.0%
1.2%
39.1%
More IMPORTED
MORE SOLD
MORE STOCK
Drive away with finance from MARAC Provided by Heartland Bank Limited
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MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply.
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