Autofile 18feb online v2

The trusted voice of the auto industry for more than 25 years www.autofile.co.nz

18 February 2016 Issue 3-2016

Tax changes to hit car sales in Japan M

arques in Japan have warned plans to replace – rather than abolish – a tax on people buying vehicles will undermine justifications to keep domestic production in place to serve a shrinking market.

The government wants to phase out acquisition tax, which is currently paid on all new-vehicle purchases, when consumption tax jumps by two per cent to 10 per cent in April 2017.

It will instead introduce a variable tax of up to three per cent on new cars depending

on their fuel-efficiency ratings.

Fumihiko Ike, chairman of the Japan Automobile Manufacturers’ Association (JAMA), describes the new levy as nothing more than replacing an existing tax.

At the moment, car buyers pay two or three per cent of the purchase price in acquisition tax, which is separate from sales tax.

“We have been asking the government to stop this dual taxation,” says Ike. “This is because consumers will still have to pay in addition to sales tax. The burden on car owners won’t be eased.”

Revenue from acquisition

tax totals about 110 billion yen a year, while the new system is expected to raise around 89b yen annually.

Since municipal governments pocket about 70 per cent of this revenue, local governments want an alternative revenue source when it’s abolished.

People who buy environmentally friendly cars that do not emit greenhouse gases – such as electric, plug-in hybrid and fuel-cell vehicles – will be exempt from the new tax.

Rates for other cars will vary from one to three per cent based

In this issue p5 Toyota tops global ladder p7 Tribute to Michael Dossor p12 Spotlight on Wellington p14 Emissions recalls start p18 Dealer fobbed off buyer p25 Record sales for month

Specialised training that’s proven to increase profits

[continued on page 4]

Door to used imports stays shut

A

ustralia’s government has confirmed the country’s borders will remain closed to the importation of used vehicles on a similar scale to New Zealand.

It will, however, allow people to personally import one new or almost new car or motorbike every two years subject to strict criteria.

It has also unveiled revised procedures for specialist vehicles through changes to the Motor Vehicle

Standards Act (MVSA) and will scrap the special duty on used imports.

The changes will come into effect in 2018 after Ford, Holden and Toyota have closed their production lines across the Tasman.

“While the government is improving schemes under which used cars that meet criteria have long been able to be imported – and will continue to be able to be imported – it is not making any general changes

to rules for used cars,” says Paul Fletcher, Minister for Major Projects.

“As it announced in late 2015 in its response to the Harper Review, the government has decided not to proceed with reducing parallelimport restrictions on secondhand cars.”

More than one million new vehicles are sold in Australia annually with about 10 per cent being manufactured in the country.

Rivalling luxury competitors

[continued on page 8]

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The ‘village idiot’ comes of age

W

e heard from Darren Risby, our erstwhile editor, in our issue of February 5 about how his time in New Zealand is coming to an end and how his return to the motherland after almost four years at Autofile’s helm is imminent.

The first issue penned by Darren – May 9, 2012 – featured two stories on page one headlined “shipping services expand” and “lenders support loan-shark laws”.

The first article was about companies expanding services after Kiwi Car Carriers’ closure in New Zealand.

The second turned out to be a continuing saga, and it was about three years later that the Credit Contracts and Consumer Finance Amendment Bill finally passed into law.

This is so often the case in our industry – a hint of a story appears, some rocks are lifted and quite a lot of digging goes on before a conclusion is reached, sometimes after a lengthy period.

Other major issues to follow included the Consumer Law Reform with the Consumer Guarantees Act, Fair Trading Act and other legislation receiving major overhauls.

The Vehicle Licensing Reform was another that stayed in the headlines for some time as has the Targeted Review of Qualifications.

The news list has included end-of-life tyres, ACC levies, shill bidding, recalls and Volkswagen’s emissions cheating.

We have seen the roll-out of mandatory electronic stability control introduced, and Autofile has reported on odometer fraud a number of times as well as car shows around the world.

The magazine and website have also covered issues from across the Tasman, such as damaged imports coming here, the impending

shutdown of car manufacturing there and the birth of the Australian Imported Motor Vehicle Industry Association – and what it means for Kiwi dealers.

Darren first reported on intelligent transportation systems in Autofile in November 2012 and electric vehicles the following month, and both subjects have featured regularly since.

As can happen in this business, stories often have lives of their own and can go on to be much more influential than first thought.

Our regular features about vehicle sales and other statistics, the rise and fall of the New Zealand dollar, and who is appearing before the Motor Vehicle Disputes Tribunal and why, are part of the daily grind for the editor of Autofile.

And all of this has been investigated, researched and reported by a journalist who wanted the industry to “treat me like a village idiot” as he got to grips with it, as he outlined on page three of the June 22, 2012, issue.

Much of the aforementioned subject matter needs someone to be slightly brighter than an average village idiot to cover it well, which has been the case.

Autofile is a much finer trade publication – and readers interested in this sector of the economy much better informed – because of Darren’s input and for that we thank him very much.

I’m sure readers will join me in wishing him and his wife Jules all the best for the future.

Steve Raea is the new editor of Autofile and we will introduce him in our next issue.

Ironically, his very first job in Wellington – at the tender age of 18 – was as editor of the Motor Trade Association’s magazine Radiator. I’m sure he will fit in well.

Brian McCutcheon, publisher

Editor

Darren Risby editor@autofile.co.nz 021 137 5430 Advertising

Brian McCutcheon brian@autofile.co.nz 021 455 775 Online producer & REPORTER

Julia Braybrook julia@autofile.co.nz Designer

Adrian Payne arpayne@gmail.com

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.

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3

news [continued from page 1]

Overhaul of tax system ‘regrettable’ on their fuel efficiency. Owners will also be required to pay the automotive and car-weight tax annually as they do now.

Ike says the heavy taxation owners face discourages people from purchasing vehicles in Japan amid negative consumer sentiment since sales tax rose to eight per cent in April 2014.

He hopes the government will act to ensure the domestic car market will not be harshly affected by next year’s sales tax hike.

“We can’t take it anymore,” says Ike, who is also chairman of Honda. “Taxes are too high and, if this continues, it will be hard for the industry to play a leading role in Japan’s economy.”

The warning is the latest by the country’s marques, which are facing continued dim prospects for domestic sales with average owners in Japan taxed almost

five times more than those in the US, according to JAMA. Younger Japanese consumers are increasingly shunning car ownership with the number of under-40 driving-licence holders tumbling by 46 per cent over the past 13 years.

JAMA members have moved production overseas for years as they expand in foreign markets.

The shift has accelerated during a period of persistent strength for the yen, which hasn’t meaningfully reversed under Prime Minister Shinzo Abe’s administration, while automotive-related charges contribute about 8.7 per cent of the country’s total annual revenue from taxation.

JAMA describes the Abe regime’s overhaul of the system as “regrettable” with decisions taken before fully considering

“JAMA members are working to supply the market with products of everhigher value.”

– Fumihiko Ike, chairman

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Japan’s extensive automobile tax structure.

Ike adds: “We recognise, however, that more vehicles will be eligible for exemption or a lower rate under the current acquisition-tax incentive scheme for eco-friendly cars, and appreciate it represents – in effect – a tax cap for owners.

“Although no measures were taken in 2014 to lower the tax burden on owners – what JAMA has long been calling for – we welcome the intention in the 2016 fiscal package to decrease this during vehicle ownership.

“For its part, JAMA will continue its unflagging advocacy of a less complex and onerous tax structure.”

Touching on the outlook of the global market, Ike says although the US Federal Reserve recently raised interest rates for 

news t the first time in about nine years, the North American car market is likely to remain stable.

“Consumers there are Ford is set to close its operations in Japan and Indonesia later this year after sensitive to interest rates, struggling to crack markets that have largely rejected foreign brands. but I don’t think the market The company is looking to shut its dealerships later this year, and end imports of Ford and Lincoln products, says Dave Schoch, of Ford’s Asia-Pacific. will shrink rapidly.”

The move comes because there is “no reasonable While it’s still too early to path to profitability”. Visit www.autofile.co.nz tell with any degree of certainty, for the full story. the rate hike in the US will probably not drastically impact on markets in other regions. in months prior to that with with a loss of 14.4 per cent in Although China’s economy the overall market dipping registrations compared to 2014. is expected to slow further, afterwards.

The marque’s exposure Ike believes the outlook is still Kei-class sales plummeted by to formerly hot-selling mini bright for that country with huge 16.6 per cent in 2015 compared vehicles, along with weak regular opportunities. to the year before, according car offerings, took its toll.

Japan’s new car market – the to the Japan Mini Vehicles Market leader Toyota lost world’s third-largest after China Association, with this segment’s 6.8 per cent in sales last year, and the US – ended 2015 with market share sinking to 37.6 per although this translated into a total passenger vehicle sales cent from 40.9 per cent over the 1.1 per cent gain in market share. nosediving by 9.3 per cent. same timescale.

Japan’s appetite for imported Most of the contraction in the Less affected by the slump were cars continues with registrations market was caused by a drop regular-sized cars, sales of which of imported brands down by only in demand for kei-class models were down by 4.2 per cent year 2.2 per cent last year. powered by 0.6-litre engines. on year, according to the Japan If mini vehicles are brought Also, taxes on the industry Automobile Dealers’ Association. into the mix, imported brands were raised in April 2015, Among Japan’s “big three”, held a 6.5 per cent share of which caused a run on minicars Honda suffered the most in 2015 Japan’s total new car market.

Blue oval pulls out

The share of imports is slightly higher when cars brought into the country by Japanese marques are taken into account.

Looking forward, many commentators believe Japan’s market for new cars has peaked due to a decreasing overall population, an increase of older people, and a population shift towards big cities with good public transport and high total cost of ownership for vehicles.

In his new year message, JAMA’s Ike notes Japan’s economy saw a moderate recovery in 2015 marked by generally favourable corporate results – reflecting, in particular, the yen’s status and decline in the price of crude oil – as well as improvements in employment and income from government policies being implemented.

“In 2016, with numerous challenges facing the automobile industry, JAMA will continue to focus on the following three priorities – revitalising the [continued on page 6]

Japanese outsell Germans

T

oyota has been crowned the world’s largest car company after selling 10.15 million units in 2015.

The marque’s performance put it ahead of nearest rival, the Volkswagen Group, which sold 9.93m units.

The German company had overtaken Toyota at the halfyear stage before the emissions scandal broke.

General Motors (GM) rounded out the top three with 9.8m registrations.

Toyota – which also owns the Lexus and Hino marques – says sales were down on 2014’s aggregate by 0.8 per cent from the previous year’s total of 10.23m units as the weaker Japanese economy hit demand in its home market.

The slowdown was in line with forecasts made last year as company bosses predicted slower growth in Japan would put a brake on sales.

GM lost the top spot as the world’s biggest car maker to Toyota in 2008, but regained it in 2011 when

the tsunami and earthquake hit the Japanese group’s production. Toyota went into the lead in 2012 and has held pole position ever since.

The Nissan-Renault partnership was 2015’s fourth largest car company in the world with combined sales of 8.22m, followed by South Korea’s Hyundai with 8.01m.

Toyota has been a leader in new technology in the automotive industry by introducing the first mainstream hybrid and hydrogenpowered cars – the Prius and Mirai respectively.

But with ownership models changing with a worldwide boom in car sharing, it is also aiming to safeguard its place as a giant in the sector.

Struggling to move past the pollution-cheating scandal, VW is overhauling its production methods, vowing to slash development costs to try offset any market downturn and squeezing more productivity out of existing plants.

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news [continued from page 5]

Focus on alternative-energy vehicles domestic market, improving the business environment, and achieving safe, comfortable and sustainable mobility,” says Ike. “JAMA members are working to supply the market with products of ever-higher value.

“A strengthened industrial sector with greater international competitiveness is critical to the sustained growth of Japan’s economy.

“For the industry to thrive amid fierce global competition and maintain a high profile, marques must raise research and development [R&D] capacity and bolster Japan-based operations so plants can work more productively.”

Ike views creating economic partnerships, and achieving freer trade and investment based on establishing common rules, as essential.

“In line with the Trans-Pacific

6

www.autofile.co.nz

Meet Japan’s top model The Toyota Aqua, known as the Prius C in some overseas markets, was Japan’s topselling regular-sized car of last year on 215,525 units – although this represented a 7.6 per cent decline on 2014’s total.

The marque’s Prius was second on 127,403, which was down by 31.6 per cent, while registrations of Honda Fits fell by 40.9 per cent to 119,846.

Toyota’s Corolla came fourth on 109,027 and the top five was rounded out by Nissan’s Note on 97,995.

Partnership [TPP], the industry intends to provide a more extensive range of high-quality products and services to meet the needs of domestic and international consumers,” he says.

“In so doing, it hopes to contribute not only to the economy, but forge closer

Annual automobile production in Japan came in at 9,278,238 units, which was down by 5.1 per cent, while car exports totalled 4,578,078 – up by 2.5 per cent. Visit www.autofile.co.nz for more statistics.

intraregional economic ties.

“We hope the TPP will accelerate the conclusion of talks on the EU-Japan Economic Partnership Agreement, Asiabased Regional Comprehensive Economic Partnership and other accords.

“The ASEAN Economic Community was launched at the end of last year, boosting expectations for increased international competitiveness of the region as an integrated market.

“Japanese automakers, many of which have extensive business operations in the region, will be working to strengthen ties in that market while contributing to local economic growth.”

Ike notes Japanese marques are increasingly equipping their vehicles with advanced driver-assistance systems and other active-safety features which, by applying intelligent transportation systems technologies, enable vehicleto-vehicle and road-to-vehicle communication.

JAMA compiled a document in November called Creating The Automotive Future Today, which details its priorities.

“Targeting zero road accidents and congestion, optimally independent and stress-free mobility, and efficient freight transport, our goal is to pursue automated driving technologies,” explains Ike.

“JAMA’s road map envisions the wider introduction of automated driving functions in the lead-up to 2020, expanded application of automated driving technologies between 2020 and 2030, and full deployment of advanced levels of automated driving by 2050.

“The commercialisation of automated driving will be predicated on its acceptance by society and incrementally require collaborative efforts among stakeholders.”

When it comes to environmental issues, the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change which was held late last year, adopted the Paris Agreement, under which countries will work together to cut global greenhouse gas (GHG) emissions.

For its part, the Japanese automotive industry will strive to meet its government’s GHG targets for 2030 by advancing next-generation alternativeenergy vehicles, further improving the performance of conventional engines and promoting smoother traffic flow.

Ike adds: “JAMA and its members will be working with related industries and petitioning for greater government support in expanding the infrastructure required for the wider use of fuel-cell, electric and plug-in hybrid vehicles.”

news

powers Director of Turners dies Extra for company M T ourners have gathered to farewell Michael Dossor, a director on the board of Turners Ltd. A service to celebrate his life was held at Old St Paul’s in Wellington on February 11 followed by private cremation. He died a week earlier after a period of illness.

The 77-year-old was a director of Turners Auctions since its listing in 2002 and was chairman from 2003 until its takeover by Dorchester Pacific – which is now known as Turners Ltd – in November 2014.

Dossor joined Turners Ltd’s board in January 2015 to represent the interests of investment company Bartel Holdings, which has a 7.01 per cent shareholding in it.

He was managing director of Turners and Growers before retiring in 2005, during which time the Turners Group was separated and

Michael Dossor

listed. He remained a director of the former and was also a director of McKay Shipping.

Dossor oversaw major changes and steady growth in the performance of the Turners Auctions business, says Paul Byrnes, deputy chairman and chief executive officer of Turners Ltd. “He was totally supportive of Turners Auctions becoming part of the larger Turners Ltd, and

contributed actively and positively to the wider business since his appointment to Turners Ltd’s board in January 2015,” he says.

Dossor was also a board member of VINZ between 2004 and 2013.

He was elected deputy chairman in November 2004 and held that position until his resignation.

Euan Philpot, chief executive of JEVIC NZ, says the board and staff of VINZ extend their “deepest condolences to the Dossor family at this time”.

Dossor died “peacefully at his beloved Bramerton surrounded by family”, states a condolence notice in the NZ Herald.

His family has thanked staff at Kahukura “for their outstanding care and support”, and requested donations be made to the Wairarapa’s palliative care service in lieu of flowers at 59 Renall Street, Masterton 5811.

rade Me is cracking down on illegal backyard car dealers thanks to being able to access the NZTA’s motor-vehicle register to help limit the risk of fraud with online purchases.

It will also be able to check whether backyard dealers own vehicles they list and if unregistered traders are selling more than their legal limit of six units per year.

John Duffy, head of trust and safety, says until now Trade Me has been unable to track down illegal dealers using false details.

“It’s another layer of defence we’ve got against people who want to get up to no good on our site.”

Only a handful of staff will be able to access the NZTA’s database. Visit www.autofile.co.nz for the full story.

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news [continued from page 1]

Decision ‘significant step forward’ Fletcher adds: “Within two years, all cars will be imported when Ford, General Motors and Toyota cease local manufacturing.

“With about 30,000 vehicles a year expected to be personally imported, most Australians will continue to buy vehicles imported by manufacturers and sold through dealer networks.”

He stresses the package of changes will offer people greater choice because “if a manufacturer chooses not to sell a particular model in Australia, a consumer may source it overseas”.

The criteria for parallel imports will apply to right-hand-drive passenger vehicles and motorbikes that are no more than 12 months old and have less than 500km on their odometers.

The government will specify countries considered to have comparable standards to Australia’s for this to happen, although Japan and the UK currently meet them.

It will also amend the Customs Tariff Act to remove the AU$12,000 special duty on used imports.

“Although this is not often applied, it’s on the statute books and costs more to administer than it raises,” says Fletcher.

“It is seen by consumers as a hurdle to importing second-hand cars even in specific circumstances when permitted. By removing this duty, we will provide more options for Australians.”

The federal government has also unveiled improvements to existing schemes for specialist and nonstandard vehicles.

It says these will improve existing arrangements for the importation of rare, classic, collectible and

There will be no flood of used imports across the wharves of Australia’s ports, such as Melbourne, in the foreseeable future; inset, David Vinsen

special-purpose models.

At the moment, individuals can import a car or motorcycle under concessional arrangements if it was manufactured before January 1, 1989.

But keeping this fixed date reduces the scope for importing classics in the future, so a rule will be introduced to allow a vehicle that’s at least 25 years old to be imported in this way.

For newer models, the register of specialist and enthusiast vehicles will be revamped with limits on the number of units that can be imported by registered workshops being canned.

“The industry will enjoy lower compliance costs because these changes will align Australian rules more closely with international standards,” says Fletcher.

“They will also simplify importation and certification arrangements, improve efficiency and remove unnecessary red tape for businesses.”

The changes announced on February 10 follow a consultation

process and legislation to implement them will be introduced later this year.

David Vinsen is the chief executive of the Imported Motor Vehicle Industry Association (IMVIA) and its Australian counterpart, the AIMVIA. He notes the overarching implications for across the ditch and this country to be positive.

“We see this decision as being a significant step forward,” Vinsen told Autofile.

“In New Zealand, as the IMVIA, our mission is to keep the doors open for used imports. We have successfully been doing that for 28 years.

“Our sister organisation in Australia has a mission to open the doors to used imports.

“If we use an analogy, we see that as not so much opening the door, but as certainly unlocking it and perhaps sneaking it ajar a little.”

Vinsen stresses the federal government has worked with the AIMVIA in a positive way and starting such relationships are critical.

“It’s a significant step forward and better than expected. Most

importantly, we are pleased with the collaboration and involvement with Fletcher’s office.”

He believes the decisions made in Australia underpin a basic right for consumers to have access to a range of vehicles.

“We think opening up the definition of a new car or a near-new one – and for people to import one every one or two years – will provide opportunities to entrepreneurial importers to work with purchasers to take advantage of that rule and import vehicles to suit.”

Vinsen is clear about the advisory to Ford, Holden and Toyota.

“The message from consumers and the industry is there is no reason for multi-national companies to continue having a monopoly on supplying vehicles to the Australian market if they are no longer providing jobs,” he says.

“Consumers there should have the same opportunities as people in New Zealand and other countries who choose to import their own vehicles.”

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new cars

It’s oh so quiet across range T

oyota’s new Land Cruiser Prado features an advanced 2.8-litre fourcylinder turbo-diesel engine with better performance, fuel economy and quietness.

The direct-injection turbo-diesel features the “world’s first” use of thermo swing wall-insulation technology, which helps it achieve maximum thermal efficiency of 44 per cent.

Fuel filtration, an important point in common-rail diesel engines, has been enhanced by adding a secondary high-pressure fuel filter to protect components.

The changes have helped it to meet Euro 5 standards with six per cent lower CO₂ exhaust emissions.

Another highlight of the new powertrain is noise suppression, with significant work undertaken to tune the Prado’s engine sound.

The new Prado

The range-opening GX, midrange VX and flagship VX Limited receive the diesel engine, while the VX petrol variant continues with its four-litre V6.

All four variants have new sixspeed automatic sequential shift all-wheel-drive transmission to allow brisk acceleration at lowto-medium speeds.

The price-leading GX gains

Sedan gets makeover

B

MW has launched its fifthgeneration 7 Series with a 740e xDrive plug-in hybrid variant planned for later in the 2016 model year.

The sedan offers upgraded technology including gesture control, which allows drivers to send incoming calls to voicemail though hand movements.

The key fob features a computer display that tells the motorist whether the vehicle is left unlocked and how many more kilometres can be achieved on the fuel in the tank.

Inside, the rear-wheel-drive model boasts on-board wireless charging, leather-covered seats, rearseat entertainment and wood trim.

Along with soft-close doors, there is a small table stored in

the centre rear-seat armrest so passengers can work.

The introduction of aluminiumskinned doors and a carbon core body make the model 86kg lighter than its predecessor.

The 7 Series offers all the power of a 12-cylinder petrol engine in its top-of-the-range model – the 760Li. The marque’s TwinPower turbo V12 accelerates the sedan from 0-100kph in 4.6 seconds via its eight-speed automatic transmission with electronic gear selector and Steptronic.

The 750i and 750 Li come with V8 powertrains, while the 730d is “surprisingly economical”.

The 7 Series has several drive models, including sport and comfort plus.

satellite navigation with a seveninch display combined with a nine-speaker audio system, SUNA traffic notification, Bluetooth telephone and audio player. Both VX models have a 14-speaker JBL premium system.

Safety specifications have been improved by adding a blind-spot monitor and rear cross-traffic alert features on

the VX. The VX Limited also receives a pre-crash system, which includes brake assist.

The driver benefits from the introduction of eight-way powerseat adjustment with active headrests with this system being four ways for the front passenger to make the cabin “more comfortable and customisable”.

There are ventilated disc anti-lock brakes, electronic brake-force distribution, vehicle stability control and trailer-sway control on all models.

Pricing for the Land Cruiser Prado starts at $78,490 for the 2.8-litre diesel GX and climbs to $99,990 for the top-of-therange VX Limited with its 2.8-litre diesel engine.

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new cars

Big, bold sedan powers in C

hrysler says its 300 offers unmistakable styling, world-class engineering and technology to rival luxury competitors in the premium and performance segments.

The two-model range for New Zealand includes the 300S, which is powered by the award-winning Pentastar V6 engine.

The other has been specifically built for drivers who want the performance of a big capacity V8 – the HEMI-powered 300 SRT. The aluminium 3.6-litre V6 delivers 210kW of power and 340Nm of torque, and boasts combined fuel consumption of 9.7l/100km.

The 6.4-litre V8’s statistics include 350kW and 637Nm with extra urban consumption of 8.6l/100km.

The 300 has a list of premium inclusions, including a TorqueFlite

eight-speed transmission, the marque’s award-winning Uconnect system with satellite navigation and a seven-inch full colour driver-information display.

An interior refinement is the Rotary E-shift dial, which changes gears electronically rather than mechanically.

Unlike a traditional transmission shifter, it sits close to the centre console’s surface, is ergonomically positioned and out of the way of the instrument panel’s centre stack.

The seven-inch cluster display has steering-wheel controls. It can switch between speed, turn-by-turn navigation, real-time fuel economy, audio, driver-assistance warnings, and safety and security functions, such as rear-park assist and fullspeed forward-collision warning.

Centred on the panel is the latest

The new Chrysler 300 SRT

award-winning Uconnect 8.4 system with navigation, which allows the driver to control audio, climate and comfort systems, including heated and ventilated seats.

Maximising its ultra-rigid structural design, engineers have tuned the cabin for sound quality and level by isolating the powertrain, road and wind noise.

The unibody has material and structural design improvements,

including two premium composite underbody panels for acoustic insulation.

The sedan’s dual-pane acoustic windshield and front-door side glass, body-cavity silencing foam, rolled-framed doors with triple seals and acoustic well liners help absorb road noise.

The Chrysler 300S is priced at $79,990 plus delivery costs, while the 300 SRT costs $98,990.

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R

olls-Royce expects its new convertible to attract more women and younger people to the brand.

The Dawn is based on the Wraith coupe, but 80 per cent of its body panels are new. Changes to the frontend design include a more recessed grille and prominent bumper.

It will be the only ultra-luxury convertible on the market capable of seating four adults in comfort, says the marque.

It also claims the Dawn is the world’s quietest convertible and the first to be as quiet as the coupe on which it’s based.

“Quite simply, it’s the sexiest RollsRoyce ever built,” says chief executive officer Torsten Mueller-Oetvoes.

The Rolls-Royce Dawn

Director of design, Giles Taylor, adds: “We are reaching out to customers who may have perceived a level of opulence and formality with previous Rolls-Royces. It’s about connecting to younger aspirations.”

About 70 per cent of the marque’s buyers are men. “The sensuality of the Dawn will attract probably more women than the Wraith,” says Taylor.

It uses the same 6.6-litre twinturbocharged V12 engine as in the Wraith and Ghost sedans, and develops 420kW of power and 780Nm of torque via an eight-speed automatic gearbox. It makes the 0-100kph dash in 4.9 seconds.

The Dawn’s indicative starting price is $669,000.

Working with out-of-town buyers T

here wouldn’t be many dealerships around that don’t appreciate extra sales they get every month from buyers out of their town or region.

Before the internet, non-local customers were harder to come by, but they now form an important part of business models.

However, despite how important these buyers are, in my experience dealers are still underutilising opportunities to increase sales in this area.

A better job can be done by informing these customers of how easy it is to purchase vehicles from out of town and from the comfort of their homes.

There will always be a percentage of people who want to see and touch what they are spending money on, but some – when given the right information and service – are happy to purchase without physically inspecting cars.

Even if they do want to visit your premises to view stock, you must let them know how easy that

is and you would love for customers are. to see them. Why not This information pick them up from the can’t be hidden on a airport or, if they make page that you hope a purchase, give them they will look at. It some petrol vouchers? needs to be mentioned Respect these on your home page buyers because and with some details they have different on all listings.

MARK GREENFIELD Motorcentral requirements to local As part of ones. They need to trust you, Motorcentral’s ongoing have confidence around what development of our website happens further down the line platform, we recently asked buyers and, in particular, believe you will what information they wanted continue to support them after available on dealers’ sites to assist the sale from a distant location. them with buying vehicles.

To ensure clarity on two specific Generally, we were surprised areas, I’ve broken down the prethe majority did not know a vehicle and post-sale stages. can be transported or delivered to them from a dealership that isn’t DEALING WITH PRE-SALES nearby and how affordable it is.

You need to ensure your listings The other area they were on Trade Me and elsewhere clearly surprisingly unaware of is the ease state how easy you make the of which finance and insurance can process for out-of-town buyers. be facilitated for purchases, but Make sure your website that’s a separate topic to talk about. educates them on why to buy We learnt a lot about what from your dealership, and also buyers want and experiences we what your options and processes need to create, and intend to deploy these as part of a new website platform in coming months.

THE POST-SALE PROCESS The most overlooked area when it comes to out-of-town buyers after sales have been completed is looking after them should anything go wrong.

I’ve lost count of the number of traders who have mentioned they are dealing with problem cars with customers hundreds of kilometres away with most of this frustration stemming from having no relationships with workshops in the buyer’s area.

The way car dealers deal with any post-sale mechanical issues is critical, especially if customers live some distance away

Not only do they not know who to deal with, it’s also whether workshops are happy to deal with them, and start repairs without accounts set up and so on.

That is why the best thing a dealership can do is sell mechanical breakdown insurance to all out-oftown buyers even if it’s at cost or given away to sweeten the offering.

The reason for this is that if anything goes wrong with the vehicle, the customer will be directed to his or her nearest repairer by the insurer, which has hundreds – if not thousands – of established workshop relationships.

That way you can be certain your customer will be looked after, given a good experience and have the vehicle with the best repairer suited to what needs fixing.

Even if the remedy isn’t covered by the policy, just using the insurer’s repairer may save a significant amount of money and time, as well as removing the stress and headache of trying to get a workshop to do what’s perceived as your work.

Post-sale experiences are also important towards referrals and retaining long-distance buyers you want to come back to make their next purchase.

My advice is look at what you’re telling customers. Ensure it’s clear and easy to understand that buying from wherever they are is an option – and an enjoyable one.

Also have a think about how best to protect them and provide yourself with options if there’s a problem because they can’t easily bring their cars back to you.

Anywhere. Anytime.

Your most important dealership information accessible from any desktop, tablet or mobile device. Faster. Easier. Smarter.

0800 623 687

www.motorcentral.co.nz

www.autofile.co.nz

11

regional report

Tourism and industry need boost W

hile economic activity in the Wellington region has fallen by one per cent in the past quarter – and its annual growth sits at the third lowest in the country – major building, infrastructure and tourism initiatives are set to drive the economy in a positive direction.

Celia Wade-Brown, the city’s mayor, says they are key drivers for decisions around cultural and transport developments.

“Visitor figures in January from Te Papa tell us the economy is in a healthier, growing state,” she told Autofile.

“We need to diversify in ways that suit our strengths, and we are doing this through the

museum, film and government-togovernment developments.

“We’ve had big growth in guest nights and have now got record occupancy of existing accommodation.

“We also have growth in companies, such as Xero and Trade Me. Xero is one of the fastestgrowing companies in Asia and is keen to keep its headquarters here.”

The region is experiencing a property boom with house sales up by 36.2 per cent on the previous year and sales of sections jumping by 59.9 per cent on the same time last year.

Values of houses have accelerated by 4.8 per cent in the city in the past three months, according to CoreLogic NZ.

“We need to diversify the economy in ways that suit our strengths.”

– Celia Wade-Brown

Wellington vehicle sales - February 2015 to January 2016 Used cars

New Cars

Used Commercials New Commercials

Public to Trader

Public to Public Trader to Public

Feb ‘15

882

642

42

204

1,079

2,831

1,421

Mar ‘15

977

832

41

247

1,244

2,952

1,488

Apr ‘15

843

570

48

203

1,130

2,639

1,430

May ‘15

1,025

558

34

202

1,213

2,805

1,550

Jun ‘15

970

689

33

233

1,302

2,799

1,593

Jul ‘15

1,060

607

43

165

1,171

3,317

1,629

Aug ‘15

927

626

35

233

1,100

2,926

1,564

Sep ‘15

858

555

31

207

1,121

2,738

1,604

Oct ‘15

941

557

36

175

1,131

2,906

1,527

Nov ‘15

895

592

38

218

1,090

2,616

1,512

Dec ‘15

886

497

41

193

1,182

2,816

1,584

Jan ‘16

852

664

26

179

1,068

2,931

1,420

11,116

7,389

448

2,459

13,831

34,276

18,322

143,526

94,986

8,889

39,482

154,059

500,356

209,801

7.7%

7.8%

5.0%

6.2%

9.0%

6.9%

8.7%

10,034

7,774

438

2,540

13,746

33,154

17,460

1,082

-385

10

-81

85

1,122

862

10.8%

-5.0%

2.3%

-3.2%

0.6%

3.4%

4.9%

Total 12 months Past 12 months NZ sales Wellingtons’s % of national sales Previous year sales Feb 14 - Jan 15 Units increase/decrease Feb 14 - Jan 15 % increase/decrease Feb 14 - Jan 15

Population 12 www.autofile.co.nz

New Zealand 4,242,051

Wellington 430,194

10.1%

Wade-Brown stresses the economy is vital. “A lot of the skills we have here could be used anywhere in the world, but we want to find a way of keeping people with them in the city.”

With a population of 471,315 at the last census, Wellington has a knowledge-intensive workforce and unemployment sits at 7.2 per cent – slightly above the national average of 7.1 per cent.

With plans to extend the airport runway – and the green light given for a convention centre and Sir Peter Jackson’s movie museum – tourism and business are top priorities for the council.

“We need a direct route to North America and various cities in Asia,” explains Wade-Brown.

“It’s going to make a huge difference. It’s not even about huge volumes, but more about people who will add value business-wise.

We are interested in opening corridors for vehicles and are working with the NZTA on that.”

As a gateway to the South Island through the Cook Strait ferries, Wellington aims to open its doors to visitors from overseas and make international travel easier.

“I’m positive about the airport extension,” says Alan Mexted, dealer principal of Mexted Motors in Tawa, which has Suzuki and Mitsubishi franchises.

“It’s going to bring money into our area and make people want to live here. If that’s the case, it will benefit my business.”

Cameron Nathanson, of Capital City Cars in Newtown, believes the  new flight regime to be created

regional report

Cuba Street’s restaurants and street performers are popular with visitors and Wellingtonians

Mexted Motors in Tawa

t by the extended runway will offer better services for business people.

“It annoys me having to wait five hours for an international flight out of Auckland. I think it’s a good thing, but I don’t know how well it will be supported. It may open up a hub to Singapore though, which is positive.”

FOCUS ON VEHICLE SALES In terms of year-on-year comparisons, sales of used imported cars in Wellington showed the most growth by increasing from 10,034 registrations in February 2014 to 11,116 in January.

That represented an increase of 1,082 units, or 10.8 per cent, over the past 12 months.

Sales of new cars have dropped by five per cent from 7,774 to 7,389 over the same timescale.

The capital makes up 10.1 per cent of New Zealand’s population, but has less than eight per cent of new registrations.

Changes of ownership for traders there are better with nine per cent of trade-ins and 8.7 per cent of dealer sales to the public.

Public-to-public transactions sit at 6.9 per cent for the region so dealers there are outperforming private sales when it comes to the percentages.

Tony Gibson, dealer principal of Gethings Motors in Upper Hutt, notes sales of Mitsubishi’s new Lancer are strong.

“Our statistics come through from head office and tell us that year on year we’ve increased sales by 25 per cent,” he enthuses.

“For the past few years, our local

paper has been getting behind shopping locally and we’ve built up a strong community presence through involvement with the Cosmopolitan Club. A lot of our sales are driven from there.

“Our demographics are buyers aged 55 to 70. Those people are looking for a trustworthy sales process they can get involved in and to get their cars serviced.

“I say to my sales staff that when someone is sitting across from you, you want eye contact and the knowledge they can come back if they have a problem.”

Gibson is positive about Wellington’s economy and lifestyle, although people are loathe to take risks when buying vehicles. However, he says the silver lining is they are drawn to known businesses.

“It works for us for people to be a little more conservative because they want to buy a vehicle with a 10-year warranty to keep the risk minimal.”

Nathanson secures used vehicles from manufacturers and regularly travels to Japan to source stock.

“For us, the yen is the biggest factor over which we have no control,” he says.

“Cars don’t go up in price. Even if you add an extra $300, you are still having margins trimmed.

“That said, I’m happy with sales.

We are running as good as we can.

Our yard is small, but we still sell 100 cars per month.

“We’ve been here for 35 years and I’ve been here for 15. We have seen so much change over that time.

“We used to receive a stock sheet from Japan in the morning

by fax. Now everything is online and much easier, although also more competitive.”

Mexted reports his sales figures are positive. “Mitsubishi Motors has had six years of month-on-month growth,” he told Autofile. “It’s great product and well-priced.

“What we have noticed is that our brand is going from strength to strength. It’s down to good advertising and marketing, plus the dealer network gives good service.

“Suzuki is also strong in sales.

The new Vitara is selling well as is the Swift, which is one of the country’s most popular cars.”

Kelly McKay, branch manager of HMC Motors in Paraparaumu, stocks new and used vehicles, with some commercials at the Levin branch.

She says: “This year has started off a bit softer than last year. It takes a while to ramp up.

“People are interested in small, economical used vehicles up to about $15,000. Interest in used SUV-type vehicles has dropped a little. We think that’s because new cars are reasonably priced, so why wouldn’t you pay only $5,000 more for a new SUV.” As for the bigger picture, McKay says there is a way to go before retailers can feel comfortable again.

“I think things are levelling out in Wellington at the moment.

I don’t think we are going to see massive increases or booms in retail, such as we have had over the past few years. It’s highly competitive.”

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13

Vehicles wanted dealers Buying now

News in brief Japanese marque takes out top award for engine

now Farmer Buying AutovillAge

®

We like cars.

But we love drivers.

European cars - all makes, all models

Audi, Volkswagen, Skoda........................................................... Blair Woolford 021 0367706 Hyundai.............................................................................................................. Heath Kendall 027 8552681 Andrew Smith  027....................................................

496 3191  andrew@euroland.co.nz Brett Harris 029 2931232 Nissan and any other brand Subaru, Chrysler, Jeep, www.euroland.co.nz Dodge, Fiat & Alfa ......... Warren Carter 021 863503

Buying: Vans, Utes, Light Trucks. Nationwide.

Contact Gareth 021660180

gareth@southcitymotors.co.nz

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To advertise here, contact:

advertising@autofile.co.nz or ph 021 455 775

EuropEan VEhiclEs WantEd

Subaru’s FA20 two-litre, four-cylinder powertrain has come first out of 31 powertrains in the 2016 Ward’s 10 Best Engines award for the second year running.

The horizontally opposed direct-injection turbo unit produces 200kW at 5,600rpm and boasts 350Nm of torque over 2,000-5,200rpm, with the judges appreciating its “superb power performance and enhanced fuel economy”.

The powertrain is in the WRX and Forester XT. The marque has won the award five times since 2004 – most recently in 2013 for its FA20 two-litre four-cylinder boxer.

The FA20 will also be in the Levorg, which is due for release in New Zealand in mid-2016.

Call backs begin with utes affected in scandal Volkswagen NZ says its parent company in Germany has started emissionscheating recalls in this country with the process getting under way with software updates for Amaroks.

The announcement was made by the marque on February 5 with call backs for other models involved to follow “as soon as possible”.

The update will take about one hour to complete and is free of charge at authorised dealerships with the company contacting affected customers to arrange this with them at “minimal inconvenience”.

Tom Ruddenklau, general manager of Volkswagen NZ, says dealerships will have loan vehicles available, and adds the marque will invite owners to drop them off at agreed times or get updates at their next service.

The remedial work will not affect the performance of the Amarok, pictured, nor its economy or “acoustic properties”.

Ruddenklau says the call backs will take “the best part of a year” to complete and – in that regard – will probably be no different to any other recalls.

Company takes on bank’s name after restructuring 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

www.corporatecars.co.nz 14 www.autofile.co.nz

Heartland New Zealand’s amalgamation with its wholly owned banking subsidiary is now in force.

As part of the process, Heartland NZ has changed its legal name to Heartland Bank Ltd with its company number remaining the same – 3152425 – although its NZX ticker is now HBL. The amalgamation simplifies the group’s structure, which was the product of the merger of three financial institutions in 2011, the corporatisation of what was Heartland Building Society and key acquisitions.

Compensation available following power failures Households and companies in Auckland hit by electricity outages caused by a fire at Penrose sub-station on October 5, 2014, can claim compensation.

They affected many car dealers just outside the CBD in the city’s east, including Greenlane.

The payment is $50 for residential customers and $200 for businesses.

Apply online at www.4penrose.co.nz or phone 0508-473-676. Have a copy of your power bill handy.

Customer wins pay-out over mix-up with Porsche A dealership in the UK has been ordered to pay damages and legal fees after it sold a rare Porsche to the wrong buyer.

The business had to fork out more than NZ$186,000 to the customer after accidentally selling the 911 GT3 RS 4.0 that the man ordered to someone else further down the waiting list. Visit www.autofile.co.nz for the full story.

new cars

Geared for cities and off-road V

olkswagen says its secondgeneration Passat Alltrack is ready to tackle daily commutes and more adventurous excursions.

It comes with a two-litre TDI engine with power output of 140kW at 3,600-4,000rpm.

Equipped with a new turbocharger, the four cylinders send maximum torque of 400Nm to the standard six-speed directshift gearbox from 1,900rpm and it

remains constant up to 3,300rpm.

The Alltrack has a top speed of 220kph and accelerates to 100kph in eight seconds. Fuel consumption comes in at 5.2l/100km on the combined cycle.

It is equipped with 4Motion all-wheel drive as standard. Thanks to a Haldex coupling, propulsion power is distributed before slip occurs to almost entirely eliminate traction loss.

The model is equipped with a The Passat Alltrack

Shaking up micro segment

H

olden NZ has confirmed its Spark will go on sale next month with redesigned styling, and “class-leading technology and safety features”.

When compared to its predecessor, the all-new model has a sleeker exterior appearance and lower profile thanks to a slightly longer wheelbase, thinner pillars and height reduction.

Combined with wheels closer to the fenders’ edges and a range of exterior colours, the overall design “delivers a more mature, distinctive presence”.

The Spark is powered by a new 1.4-litre engine capable of producing 73kW of power and 128Nm of torque.

In addition to a new, stiffer and stronger architecture, it comes Holden’s Spark

with six airbags as standard and active-safety features, such as electronic stability control, hillstart assist, traction control and a rear-view camera.

Kristian Aquilina, managing director of Holden NZ, describes the Spark’s arrival as a “significant milestone”.

He adds: “The arrival of the European-sourced Astra, Cascada and Insignia last year signalled a new and exciting direction for our future product story.

“It continues with the Spark, which we expect to shake up the growing micro-car segment.”

It is priced from $16,990, plus onroad costs. It comes with a five-speed manual gearbox and an optional fourspeed automatic transmission.

profile selector with normal, sport, off-road and individual modes.

The off-road profile is exclusive to the Alltrack, which assists the driver with a modified powertrain strategy.

For example, hill-descent assist is automatically activated with ground clearance increased by 27.5mm over the standard Passat range to 174mm.

With five passengers on board, class-leading stowage of 639 litres is available and folding the split rear-seat backrest enables flexible use of the interior.

The Alltrack has maximum connectivity thanks to its 6.5-inch colour touchscreen stereo with

Discover Media and App Connect navigation systems.

Along with the marque’s normal safety features, it has rest assist – a driver fatigue-detection system – and front assist, which warns motorists about insufficient distance to vehicles in front and potential collisions at higher speeds before automatically braking if necessary.

In addition, the city emergencybraking system performs the same role as front assist in slower traffic.

Up until now, this system detected only vehicles, but the more advanced version also recognises pedestrians.

The Passat Alltrack has a recommended retail price of $57,990, plus on-road costs.

VEHICLES WANTED Mercedes Benz

Volkswagen Nissan Lexus Kia

Toyota Chrysler Jeep Dodge We are always looking to purchase late model

NZ NEW CARS AND COMMERCIALS PAUL CURIN

0274 333 303

pcurin@miles.co.nz

miles motor group www.autofile.co.nz

15

Industry movers NZ labour market report AARON SAUNDERS, chief financial officer of the Turners Group, has taken on the additional role of chief operating officer for cars.

The appointment is part of a restructuring of the auction house’s individual businesses of cars, trucks and machinery, and finance into separate Aaron Saunders managerial areas, as reported in the February 5 issue of Autofile.

JONATHAN SERGEL, general manager of supply, is now responsible for Turners Fleet, as well as “all vendor relationships and sourcing”.

DEAN BRINDLE, general manager of operations, has “overall responsibility” for the company’s 10 Jonathan Sergel branches across New Zealand.

A general manager of sales, who will be responsible for “all frontline sales efforts”, is likely to be appointed in the near future.

SHANE PLUSA has joined the Mainstream Insurance team as business development manager for the Lower North Island, and Nelson and Marlborough areas.

Based in Wellington, he will be focused on partnering with dealerships to support them in increasing and retaining profit from finance and insurance products.

Plusa has 17 years of experience in New Zealand’s automotive industry having held varied roles in new and used-vehicle sales management, including representing Skoda, Chrysler, Jeep and Dodge.

MARY BARRA has made history again by being the first woman to be chairman of General Motors – she was appointed as its first female chief executive in 2014, which is a role she continues to hold.

Barra takes over from Tim Solso, who will remain on the board. She was previously executive vice-president for global product development (GPD), purchasing and the supply chain, and senior vice-president of GPD. She started her career with the company in 1980.

ANTON COOPER is Subaru of New Zealand’s latest brand ambassador.

The professional mountain biker, who hails from Woodend in North Canterbury, will rejoin his Cannondale Factory Racing team in Germany in March for world cup and championship rounds before the Rio Olympics.

DARRYL FRENCH is now general manager of Dorchester and Oxford Finance. He has been with Turners Ltd for 10 years, and was previously group collections and lending manager for Dorchester.

SIMON WRIGHT, the chef well-known in Auckland for his restaurant The French Cafe, has joined Mercedes-Benz as an ambassador.

Ben Giffin, the marque’s general manager, says: “The partnership sees Mercedes-Benz enter into the realm of food for the first time in New Zealand and, as a car enthusiast himself, we couldn’t think of a better fit than Simon.”

TO FEATURE IN INDUSTRY MOVERS EMAIL EDITOR@AUTOFILE.CO.NZ 16 www.autofile.co.nz

While the number of job vacancies advertised grew in the final quarter of 2015, the amount of applications exploded, according to data from Trade Me. Peter Osborne, head of Trade Me Jobs, says analysis of about 58,000 listings in the three months to December shows vacancies as slowing with modest growth of 2.2 per cent, while advertising reduced compared to the “giddy heights” of early last year and 2014.

“The clearest indicator the market moving in favour of employers has been the huge increase in applications,” he says. “During the final Peter Osborne quarter of last year, average applications received per listing were up by 12 per cent on the previous quarter.

“This means employers should find it easier to fill roles and job hunters are going to have a tougher time. There are now more candidates for employers to choose from.”

If the trend continues, Osborne expects the time it takes to find a position will expand, so people looking for roles should anticipate longer searches and put more effort into the process.

“Whenever you apply for a new job, you need to research, prepare and practice. It’s now more important to stand out from the crowd. Candidates who take time to understand a business and nail the process will find a role in a more competitive market.”

Osborne says the start of 2015 saw a largely buoyant market with growth across most sectors and regions.

“Demand for IT, construction and people in trades was especially high at the beginning of last year, and Auckland continued its expansion with new jobs advertised growing in the double digits each quarter.

“Auckland ended the year with

nine per cent growth in listings compared to 2014. The Bay of Plenty also had an incredible year with an 18 per cent increase.

“Other regions didn’t enjoy quite as prosperous a year. By June, growth had slowed in Wellington and Canterbury indicating demand for workers had become patchier.”

Competition for roles has become fierce in Canterbury where listings fell by six per cent, but applications jumped by 22 per cent.

“Demand in Christchurch for construction and tradespeople for the rebuild settled to a more sustainable level as 2015 progressed,” notes Osborne.

“Slowing demand for workers there isn’t necessarily a bad result since many employers were finding it virtually impossible to hire a full roster of skilled people when the rebuild was at its peak.

“Indications are 2016 is shaping up to favour employers more than job hunters – as seen in the latter part of 2015 – with Auckland being the major exception.”

Osborne predicts the surge in job advertising in construction and trades of recent years should settle into a more sustainable level of demand in Christchurch, while large infrastructure programmes and Auckland’s growth are likely to continue as the super city expands.

“Skilled trades and professions are likely to remain in relatively high demand. Applicants for hospitality and tourism, customer service and office admin jobs may find it more difficult to secure roles due to increased competition.

“Overall, we still expect job advertising to increase in the foreseeable future, but with a greater breadth of highs and lows across regions and sectors as in the last quarter of 2015.”

f & i focus

Shake every tree for returns J

anuary has been and gone, and February is passing us by quickly. China is in a spiral, world markets are sliding and some people are saying “here we go again”.

However, I’m told sales volumes in New Zealand are still very healthy for both the new and used-vehicle markets.

On the flipside, our used dealerships are finding it increasingly difficult to source good-quality stock locally or from overseas at the right price.

Now is the time to shake every tree and squeeze every lead you have to maximise your return on each unit because it may be a while before you are back up to a full complement of stock.

Now is also the time to surround yourself with the best team. The most successful people in this world often surround themselves with

employees more skilled Mills, our dedicated than they are – often business coach. without letting on.

Erin has been with This time of year is Protecta now for three when good people are years coming off the most active in seeking back of many years’ a fresh start with new experience in the year resolutions, new industry both here and beginnings and all of in Australia.

SIMON MOORE that.

She also has a great Motor-trader development manager This is where reputation for guiding Protecta Insurance Protecta likes to play business managers a valuable part in assisting our to achieve great things in a short dealerships in their recruitment period of time. Erin can tailor and advertising to find star finance her approach to maximise each and insurance performers to individual’s skill or experience level. complement their sales teams.

Our two-day business We offer a service whereby we manager’s course covers can advertise independently and everything to get even the filter applicants when necessary most experienced team leader before putting the right remotivated and refreshed. candidate forward.

The course is free to attend for With your final approval, of our Protecta affiliated dealerships, course, the successful applicant although you need to arrange is given hands-on training by Erin travel and accommodation.

Did I mention that our ongoing nationwide training and follow-up call cycle is also free of charge?

One of our finance partners will also attend the courses as a guest speaker to cover off all types of finance contracts, the application process, what a credit team is looking for in a deal and how to finally get a contract settled.

We often see a number of business managers attend once a year to fill holes in their knowledge, which helps us in sessions with people new to the role.

Positions are filling fast, so please go ahead and give either Erin or myself a call for upcoming dates and location details.

Pretty soon new or existing business managers will be shaking every branch and trying to maximise potential earnings, which will only increase dealerships’ bottom lines.

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Insurance

MBI

Contact Erin Mills Business Coach, Protecta Insurance Email: erin.mills@protecta.co.nz Phone: 0800 776 832 www.autofile.co.nz

17

disputes

Tribunal rules dealer fobbed off buyer after making arrangements for repairs Background On April 11, 2015, Harmanjit Brar bought a 2005 BMW 320i from Spot One Ltd for $11,750.

Brar claimed the trader failed to rectify the car’s faults within a reasonable timeframe and rejected it under the Consumer Guarantees Act (CGA) a few months later on July 2.

He wanted the tribunal to uphold his rejection, and order the dealer to refund his purchase price and other costs he claimed to have incurred.

The trader said it had repaired the faults within a reasonable time and Brar wasn’t entitled to reject the car.

The case After taking delivery of the BMW on April 22, 2015, Brar discovered the trader had failed to remedy issues with the dashboard’s warning lights and windscreen rubber, and the left-rear window was faulty.

He phoned the dealer that day and was told to return the vehicle for repairs the next day. He did so, but within a week the window had become faulty again.

Brar contacted the trader and returned the car on May 29 to have the problems rectified.

He was asked to take it back on June 3, but when he did so the dealer gave him another appointment for the next day.

On June 4, Brar returned his BMW and was told the trader’s mechanics were busy and it was unsure how long they would take to fix the car.

He took the vehicle to Manukau Vehicle Servicing on July 2 for an inspection.

It reported a range of faults.

These included a window not working, engine-oil leaks, a burning smell and the electronic stability control (ESC) warning light was illuminated.

There was an issue with the hydraulic unit, the left-reverse light wasn’t working and there was a brake-light switch problem.

The car had incorrect tyres, an after-market radio, worn valve-stem seals and there was possibly an alternator clutch fault. The report noted the vehicle wasn’t fit to hold a valid warrant of fitness (WOF).

That day, Brar emailed the trader to reject the vehicle due to the dealer’s failure to repair the window and for faults identified

by Manukau Vehicle Servicing.

The dealer asked him to return the BMW so he could have it independently assessed, which he did on August 25.

The trader had the vehicle for two weeks and said it replaced the battery, repaired the window and fixed oil leaks.

Brar claimed the vehicle still leaked, smoked excessively and the window was faulty, but the dealer disputed the issues with the oil and window.

The tribunal ordered the car be taken to a specialist repairer.

A report by BM Workshop listed various faults, including a seized alternator pulley.

The top coolant hose was

leaking, the front controlarm bushes were worn, the battery was undersized, the transmission was leaking and there was a possible valvetronic fault.

BM Workshop said it was hard to see if the oil-leak repairs were successful because the engine had been cleaned, but there was a slight leak from the eccentric shaft sensor. It confirmed the valve stem seals were leaking.

The report stated the window was faulty, but it had been rectified by initialisation. Its switch had broken clips, the door panel had broken clips and missing screws, and the panel’s weather shield had been cut out and not refitted allowing water into the door.

The report added the wheels weren’t to the manufacturer’s specification and there was no spare wheel.

The finding The tribunal said Manuaku Vehicle Servicing’s report contained a long list of problems, which painted a grim picture of wear and neglect.

It was satisfied most of the car’s faults were present at the time of sale and, if not, it lacked the durability a reasonable consumer would regard as acceptable in a 10-year-old imported BMW 320i that had travelled 98,756km when sold for $11,750.

It was ruled the vehicle didn’t comply with the guarantee of acceptable quality as detailed in

The buyer wanted to The case: nd-h and BMW after

reject his seco the trader failed to fix a window and an inspection exposed a number of faults. The dealer said it had repaired the problems within a reasonable time and the buyer wasn’t entitled to reject the vehicle.

n: The application The decisio car was upheld. The to reject the trader was ordered to pay the purchaser $12,316 and collect the vehicle. r Vehicle Disputes At: The Motoland .

Tribunal, Auck

section six of the CGA because it wasn’t free of minor faults, nor as durable as a reasonable person would regard as acceptable for a car of its age, type and price.

The tribunal noted Brar had made a number of fruitless trips back to the trader, and gave it opportunities to repair the window and warning lamps.

It was found that the dealer repeatedly fobbed off Brar after making arrangements to repair the car.

Also, after receiving an opportunity in August to deal with the vehicle’s faults, the trader still failed to remedy the window and oil leaks.

The tribunal ruled Brar gave the dealer a reasonable opportunity to rectify the faults, but it didn’t succeed in repairing them.

Orders The application to reject the vehicle was upheld by the tribunal.

The trader had to pay the buyer $12,316, which included compensation for two reports and returning the car for repairs. The dealer was also ordered to collect the vehicle at its own cost.

From the rising sun to the long white cloud The history of used car importing to New Zealand 18 www.autofile.co.nz

disputes

Adjudicator says purchaser failed to give trader enough time to fix car Background Varaire Teremaki bought a 2003 Volkswagen Bora for $3,400 from Andrew Bird, trading as Coast Cars. She wanted to recover $2,352 for repairing it.

Bird said she failed to give him a reasonable opportunity to fix the first fault before taking the vehicle to another repairer and didn’t ask him to make other repairs before having them fixed, so he denied liability under the Consumer Guarantees Act (CGA).

The tribunal had to consider if the car complied with the guarantee of acceptable quality and if the purchaser required the trader to remedy the faults within a reasonable timescale.

The case Teremaki bought the car, which had 195,358km on its odometer, on August 11, 2015.

She said the engine misfired the next day when she was driving the vehicle, which caused it to jerk. She called Ms E Wilson, a family member, for help.

Wilson said she called Bird, who was unable have the car towed so it was left at a Caltex service station near Teremaki’s workplace.

Bird said Wilson phoned him on August 12. He told her he would have his mechanic repair it the following day at about 10am.

Wilson collected the vehicle on August 13 and took it for a test drive before delivering it to Giltrap Prestige at around 8.30am. She was either unable

or unwilling to wait for Bird’s mechanic to repair it.

Wilson asked for an estimate to fix the car and claimed she emailed it to Bird. He denied receiving it and the tribunal wasn’t provided with a copy of the quote.

She added she gave Giltrap Prestige authority to replace the throttle body. It invoiced her $1,164 for the job.

Bird’s mechanic, Mr J Arthur, said he travelled to the Caltex on the morning of August 13, but the Bora wasn’t there when he arrived.

He phoned Bird, who gave him Teremaki’s phone number, but he was unable to contact her.

That afternoon, Bird said Wilson contacted him and told him the car had been repaired and asked the dealer to pay the cost.

Bird told her that he could have repaired the throttle body for $400, which was all he would pay towards the bill, and paid Giltrap Prestige that amount the following day.

A week later, Teremaki said the car was shaking and jerking when being driven, so she took it to Moon Motors. She said the vehicle was doing exactly what it had done before it was taken to Giltrap Prestige.

Wilson texted the dealer on August 20, and said her mechanic would fix the car and she expected the trader to pay for repairs.

Although Bird refused that request, Wilson authorised Moon

Motors to replace the spark plugs, air and oil filters, frontbrake pads, ignition coils and front-lower control-arm bushes.

It balanced and fitted the right-front tyre, and two new rear tyres. Moon Motors invoiced Wilson $2,002 for the work.

The buyer wanted The case:refun d the $2,352

the trader to repair bill to fix her vehicle. The dealer said she didn’t give it a reasonable opportunity to remedy the faults.

n: The tribunal The decisio purchaser failed

ruled that the to ask the trader to remedy the car’s defects and didn’t provide a reasonable timeframe in which to do so before she had the faults fixed, so the application was dismissed. r Vehicle Disputes At: The Motoland .

Tribunal, Auck

The finding The adjudicator took into account the age, mileage and sale price of the Bora in determining whether it complied with the CGA’s guarantee of acceptable quality.

The tribunal’s assessor thought it likely the diagnosis

by Giltrap Prestige of a throttle fault was wrong. Moon Motors’ inspection showed the vehicle needed its ignition coils replaced.

As a result, the tribunal didn’t think any reasonable consumer would regard the Bora as either free of faults or durable under section six of the CGA. However, it found the dealer wasn’t responsible for servicing the vehicle, and there was no evidence to justify replacing the brake pads, lower control-arm bushes or tyres. The car was sold with a new warrant of fitness.

The tribunal doubted that a quote was sent to the trader on August 13. It found it likely Wilson decided to have Giltrap Prestige repair the vehicle on that date and expected the dealer to pay the cost.

Therefore, neither Wilson nor Teremaki complied with their

obligations under the CGA by requiring the trader to fix the car and give him a reasonable timeframe in which to do so. The dealer, to his credit, contributed $400 towards the repair costs.

The tribunal said the nature and timing of communications between Wilson and Bird on August 20 were unclear.

As a result, the tribunal wasn’t satisfied the purchaser proved she or Wilson required the trader to repair the faulty coils nor gave Bird a reasonable time in which to do so before they were replaced by Moon Motors.

Accordingly, the tribunal was unable to order the trader to refund any part of the $2,002 invoice paid by Wilson to Moon Motors to repair the vehicle.

Order The application was dismissed.

The tribunal ruled the buyer didn’t require the trader to remedy the vehicle’s defects nor gave it a reasonable opportunity to do so before having the faults fixed.

Therefore, the purchasher was unable to recover her repair costs under the CGA.

Orders are now being received for this limited print run hardcover book – a fantastic gift or just to have in the office or showroom Priced at $59.50 including post and packaging Visit www.autofile.co.nz/book and fill in the order form now, email brian@autofile.co.nz or phone 021 455 775 www.autofile.co.nz

19

Brought to you by

the

c

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

New passenger vehicle registrations by city

ry

Aro

nt

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 Masterton Wellington Nelson Blenheim Greymouth J aWhangarei Auckland Hamilton5 Thames n uar y 2 01

Used import passenger vehicle registrations by city

5000

6500

4500

4,584

6000

4000

3000

Auckland

5,776

Auckland

5500

3500

5000

2500 2000

2000

1500

1750 1,213

1000

1500 Vehicles sold

Vehicles sold

Christchurch 900 800

Christchurch

700

Wellington

1,438

1000 Wellington 900

664

800

600

700

852

Hamilton

600

764

500 600

Hamilton 400

Tauranga

500

508

Dunedin

300

400

Tauranga 200 Dunedin 100

383

266 247

300

309

161

Palmerston North

200

Palmerston North

0

Jan ‘16

Dec ‘15

Nov ‘15

Oct ‘15

Sep ‘15

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb ‘15

Jan ‘15

Jan ‘16

Dec ‘15

Nov ‘15

Oct ‘15

Sep ‘15

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb ‘15

Jan ‘15

0

New and used cars registered in January 2016 by region WHA

AUC

HAM

THA

TAU

ROT

GIS

NAP

NEW

WAN

PAL

MAS

WEL

NEL

BLE

GRE

WES

CHR

TIM

OAM

DUN

Used cars

214

5,776

764

85

508

112

46

263

174

72

309

65

852

227

53

41

10 1,438

112

30

383

New cars

128

4,584

600

67

266

85

37

186

160

88

161

64

664

107

50

18

1 1,213

60

19

247

Total cars

342 10,360 1,364

152

774

197

83

449

334

160

470

129 1,516

334

103

59

11 2,651

172

49

630

VTNZ is the market leader in independent safety and service inspections. With over 80 stations nationwide, our people are experts in Entry Certification, Pre Purchase Inspections and Certificates of Fitness.

Visit www.vtnz.co.nz or call 0800 88 88 69 today 20 | www.autofile.co.nz

INV

TOTAL

141 11,675 94

8,899

235 20,574

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3 Mar

16 Mar

Nagoya

5 Feb

16 Feb

4 Mar

17 Mar

Yokohama

6 Feb

17 Feb

5 Mar

18 Mar

Auckland

21 Feb

5 Mar

20 Mar

4 Apr

Wellington

28 Feb

8 Mar

27 Mar

7 Apr

Lyttelton

7 Mar

7 Mar

1 Apr

6 Apr

Nelson

9 Mar

9 Mar

4 Apr

8 Apr

YOUR FIRST CHOICE IN SHIPPING Phone

0800 ARMACUP (276 2287)

email enquiries@armacup.com

www.armacup.com www.autofile.co.nz

21

www.heiwa-auto.co.nz

Currency changes hitting home

I

mporters of used cars from Japan are contending with tough cross-rates with the New Zealand dollar.

“It has been very difficult with the yen in the past three months,” says Cameron Nathanson, of Capital City Cars in Wellington.

He was in Japan last week and, since he returned on February 12, the cross-rate “has dropped back a bit, which is disappointing for us”.

Greg McCracken, dealer principal of Stephen Hill Motors in Hastings, says: “Our stock levels are maintained by trade-ins and importing from Japan.

“The trade-ins are a constant.

We have found it’s easy enough to get a car from Japan, but whether it’s going to be financially viable is the problem.

“You can buy anything you like. It’s just whether there’s going to be a margin in it. Everyone else is doing it and there’s obviously a lot of competition out there.”

Nathanson is weathering internet trade well, and notes big changes have taken place in the industry during the 15 years he has been with the business.

“We are the only yard left on Adelaide Road and there used to be quite a few up our end.”

He notes just two non-

franchised dealerships remain in central Wellington. “There are other yards popping up, but very few traditional ones like ours.

“The sole-trader type car dealers don’t have the buying power we do and we take a small margin. We are Motor Trade Association-assured and have offices – and are not doing business from a backyard.

“When I started out, the industry was quite different. It was very much two-tiered, but we are now still selling four times as much as we were.

“I believe that someone has generally bought a car before they go onto a yard. There’s

definitely a good portion of that going on and it’s to do with good advertising.”

There were 9,769 used passenger vehicles imported into New Zealand during January.

That was down by 3.7 per cent compared to 10,139 in the same month of 2015.

Out of January’s total, 9,190 used cars were imported from Japan for a market share of 94.1 per cent.

Australia came second on 322 units to account for 3.3 per cent. Next up were the US on 90, Singapore on 76 and the UK on 68.

As for used light commercials, 552 crossed the border during January.

Used imported passenger vehicle arrivals 16000 15000 14000 13000 12000 11000 10000 9000

2015 2016 2014

8000 7000 6000 5000 4000

2013

3000

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Imported Passenger Vehicles By Country Of Export Country of Export

Australia Great Britain Japan

2016

2015

2014

JAN ’16

Jan Market Share %

2016 Total

Q1

Q2

Q3

Q4

2015 TOTAL MRkt Share

2014 total

322

3.3%

322

1,079

1,232

1,258

1,324

4,893

3.2%

3,167

MRkt Share

2.3%

68

0.7%

68

283

252

194

210

939

0.6%

1,885

1.4% 95.0%

9,190

94.1%

9,190

33,293

41,594

30,804

37,434

143,125

94.9%

130,770

Singapore

76

0.8%

76

77

160

182

192

611

0.4%

252

0.2%

Usa

90

0.9%

90

259

246

258

278

1,041

0.7%

1,278

0.9%

Other countries Total

23

0.2%

23

75

66

50

62

253

0.2%

286

0.2%

9,769

100.0%

9,769

35,066

43,550

32,746

39,500

150,862

100.0%

137,638

100.0%

www.heiwa-auto.co.nz contact: Kei Mikuriya mikuriya@heiwa-auto.co.jp

22 www.autofile.co.nz

Strictly Dealer Only anD true WhOleSale

Proud to sponsor the SecondHand Car Sales Statistics

Market steady across country S

ales of second-hand cars during January by dealers to members of the public were down slightly compared to the same month of last year.

Traders sold 188 fewer units – 16,127 compared to 16,315 – for a 1.2 per cent decrease.

The biggest proportional drop was in trade-ins, which went down by 3.8 per cent from 12,086 to 11,621. Private transactions went up by 4.8 per cent to 42,151 from 40,231.

The largest increase in dealer sales was in Rotorua with a 46 per cent jump thanks to 346 in January compared to 237 in the same month of 2015. Next up

was Thames with an 18.6 per cent rise from 172 to 204.

The top two rises in traderto-public transactions were in Wanganui and Thames – by 25.4 and 13 per cent respectively.

Ian Humphrey, dealer principal of Ian Humphrey Motors in Palmerston North, says: “Probably 50 per cent of the cars on our yard are genuine New Zealand-new trade-ins.

“We have sold about 6,100 cars since being here [in 1999] and obviously a lot of vehicles out there end up coming back to us.

“A typical example is that we may have a car for $40,000. Then a

customer will bring me one in after having it for three or four years and we will give him or her $15,000.

That’s a normal deal for us.

“Vehicles also come from other dealers. We recently bought a Holden from a Mercedes-Benz dealer in Wellington.

“We get them from all over.

We pay fair money and straight away so we always get contacted again. We have built up quite a rapport over the years with these guys.”

Up until 2014, Humphreys’ business only sold Holden Commodores and Ford Falcons.

“But because up to 50 per cent of new vehicles sold last year

were SUVs or double-cab utes, we’ve had to bring a few of those in,” he told Autofile.

“I can see us selling more of them. As 2016 is the last year Ford is making Falcons, I can see our market changing more into SUVs and utes.”

Rusty McKnight, of Chance Cars in Rotorua, says: “We stock multi-seaters, station wagons with prices capped at about $15,000.

“We do take trade-ins although that can be hit and miss in terms of quality and profit margins. Everything else comes direct from Japan. We don’t buy from Turners, but many do.”

Secondhand car sales - January 2016 Dealer-To-Public

Public-To-Public

Public-To-Dealer

Jan '16

Jan '15

+/- %

MARKET SHARE

Jan '16

Jan '15

+/- %

Jan '16

Jan '15

498

459

8.5

3.09

1,849

1,757

5.2

222

230

-3.5

Auckland

5,493

5,254

4.5

34.06

14,567

13,582

7.3

4,180

4,203

-0.5

Hamilton

1,312

1,303

0.7

8.14

3,146

3,085

2.0

1,121

1,097

2.2

204

172

18.6

1.26

636

468

35.9

87

77

13.0 -16.8

Whangarei

Thames

+/- %

Tauranga

882

885

-0.3

5.47

2,093

2,074

0.9

520

625

Rotorua

346

237

46.0

2.15

879

707

24.3

107

100

7.0

Gisborne

143

173

-17.3

0.89

353

360

-1.9

92

108

-14.8 -11.5

Napier

581

611

-4.9

3.60

1,457

1,370

6.4

368

416

New Plymouth

389

432

-10.0

2.41

979

1,027

-4.7

235

243

-3.3

Wanganui

197

182

8.2

1.22

522

446

17.0

143

114

25.4 -15.2

Palmerston North

743

808

-8.0

4.61

1,649

1,641

0.5

546

644

Masterton

175

174

0.6

1.09

431

336

28.3

97

96

1.0

Wellington

1,420

1,548

-8.3

8.81

2,931

2,779

5.5

1,068

1,133

-5.7

Nelson

305

334

-8.7

1.89

1,038

892

16.4

236

260

-9.2

Blenheim

165

173

-4.6

1.02

412

367

12.3

109

129

-15.5

Greymouth

59

96

-38.5

0.37

228

232

-1.7

34

41

-17.1

Westport

17

16

6.3

0.11

78

97

-19.6

0

1

-100.0

1,949

2,070

-5.8

12.09

5,232

5,528

-5.4

1,682

1,653

1.8

212

253

-16.2

1.31

518

513

1.0

136

165

-17.6

Christchurch Timaru Oamaru

61

81

-24.7

0.38

158

219

-27.9

6

25

-76.0

Dunedin

616

649

-5.1

3.82

2,026

1,796

12.8

406

470

-13.6

360

405

-11.1

2.23

969

955

1.5

226

256

-11.7

16,127

16,315

-1.2

100.00

42,151

40,231

4.8

11,621

12,086

-3.8

Invercargill 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

Compliance made simple... since 1999

ph 0800 668 679

www.motorweb.co.nz www.autofile.co.nz

23

new cars Passenger Car and SUV Sales by Private/Business split Make

Private

% Private

Business

% Business

Alfa Romeo

7

31.8

15

68.2

22

Aston Martin

2

66.7

1

33.3

3

53

38.7

84

61.3

137

2

40.0

3

60.0

5

BMW

42

21.0

158

79.0

200

Chery

19

86.4

3

13.6

22

Chrysler

1

50.0

1

50.0

2

Citroen

14

63.6

8

36.4

22

Dodge

7

29.2

17

70.8

24

Audi Bentley

Ferrari

2

50.0

2

50.0

4

Fiat

47

74.6

16

25.4

63

Ford

253

34.0

491

66.0

744

Holden

202

21.0

761

79.0

963

Honda

247

72.4

94

27.6

341

Hyundai

185

32.0

393

68.0

578

Isuzu

13

52.0

12

48.0

25

Jaguar

14

35.9

25

64.1

39

Jeep

28

29.5

67

70.5

95

Kia

*Business sales include rental and government sales, and the totals include passenger cars and SUVs. SOURCE: MIA

Total

134

50.6

131

49.4

265

Lamborghini

1

100.0

0

0.0

1

Land Rover

71

47.3

79

52.7

150

Lexus

24

49.0

25

51.0

49

0

0.0

3

100.0

3

McLaren Maserati Mazda

7

58.3

5

41.7

12

374

43.8

480

56.2

854

56

38.9

88

61.1

144

0

0.0

1

100.0

1

Mercedes-Benz MG Mini

25

32.1

53

67.9

78

Mitsubishi

200

54.3

168

45.7

368

Nissan

244

49.4

250

50.6

494

Peugeot

36

53.7

31

46.3

67

Porsche

51

65.4

27

34.6

78

Renault

2

28.6

5

71.4

7

Skoda

33

33.0

67

67.0

100

SsangYong

58

52.3

53

47.7

111

Subaru

82

32.3

172

67.7

254

Suzuki

227

60.4

149

39.6

376

Toyota

293

16.5

1,478

83.5

1,771

Volkswagen

136

38.4

218

61.6

354

Volvo

14

30.4

32

69.6

46

Total

3,206

36.1

5,666

63.9

8,872

Swedish marque aims to boost market share

V

olvo is predicting 20 per cent growth in sales of new cars this year as demand in New Zealand expands for vehicles with more advanced safety features and innovative technology.

The marque recently reported a record year for registrations at a global and local level, while the XC90 was this country’s most awarded car of 2015 with 10 gongs.

Coby Duggan, Volvo’s national manager for this country, says buyers are seeking out models with greater technological advancements, while the Swedish marque is seen to be leading the way in safety, convenience and comfort.

Over the past two years, Volvo’s sales expansion rates on these shores have been among the highest of any in the world averaging 50 per cent a year in 2014/15.

Duggan says at about five per cent growth in 2015, new vehicle sales across the industry are expected to be fairly flat in 2016.

Despite this, he forecasts a further 20 per cent in growth this year with the new XC90 likely to account for one-third of the marque’s registrations in its first full year of availability here.

He says Kiwis’ early adoption of the XC90 is an example of the growing demand for SUVs, which are fuel efficient and offer the latest safety technology.

Duggan says demand for the range remains high and there is already a six-month waiting list for its soon-to-arrive T8 variant – the world’s first plug-in hybrid seven-seater.

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It is also fitted with the latest generation of fuel-efficient Drive-E technology, which reduces CO₂ emissions by up to 30 per cent while increasing power output and, at the same time, offering better fuel economy.

Along with greater fuel efficiency, Volvo has invested billions of dollars in developing accident-prevention features.

These include adaptive cruising with pilot assist, which keeps an appropriate distance to the car in front and helps keep the vehicle in its lane by using a camera in conjunction with radar.

Then there’s a 360-degree bird’s-eye view camera to assist drivers with parking, and active high-beam LED headlights that automatically sense other vehicles, pedestrians and cyclists.

Other features include two worldfirst innovations, such as Volvo’s run-off-road protection system, which reduces vertical forces that cause spine injuries, and automatic braking, which prevents drivers turning into oncoming traffic.

Volvo sold 46 passenger vehicles in New Zealand during January, according to Motor Industry Association statistics. Of these, 32 units, or 69.6 per cent, were business registrations.

Total sales of new cars and SUVs across all marques came in at 8,872 with 3,206 – or 36.1 per cent – being bought by members of the public.

Toyota topped the ladder on 1,771 units with 1,478, or 83.5 per cent, being sold to businesses.

new vehicles

Record set for monthly sales T

he Motor Industry Association (MIA) says last month was the strongest January ever.

“Businesses and consumers continued to buy up large last month with 11,893 new-vehicle registrations,” says David Crawford, chief executive officer.

Sales across all sectors came in 245 – or 2.1 per cent ahead – of January 2015.

Last month’s total was made up of 8,876 passenger vehicles and 2,924 commercials. It was also the strongest-ever total for sales of commercial vehicles for a January.

Crawford says the fleet’s make-up

continues to evolve with SUV sales expanding to claim a 33 per cent share of the market. This segment was followed by pick-ups and chassis cabs with 18 per cent, and small passenger cars on 16 per cent – down by about three per cent on January 2015.

“Sales of new vehicles in 2016 have started where they left off in 2015,” adds Crawford. “The remainder of 2016 is expected to slightly soften as the year progresses.”

As for the wider economy, ANZ predicts it will again pick up and be boosted by a net inflow of migrants.

Chief economist Cameron Bagrie says “businesses are in a joyful mood”

NEW VEHICLE SALES BY BUYER TYPE - January 2016

in the bank’s latest outlook report.

“A net 23 per cent of businesses are optimistic about the general economy over the year ahead,” he adds. “That’s the highest reading since April 2015.

“Our composite growth indicator, which combines sentiment measures from business and consumers, is flagging the potential for GDP growth north of three per cent.

“We’re more circumspect than that by picking growth of 2.5 to three per cent.

“That’s still impressive considering economic challenges remain, such as low dairy pay-outs.

“It’s testament to the wider forces supporting the economy and there is no denying an improvement in the growth stakes.

“With it picking up, so will employment. Unemployment will not be rising towards seven per cent this year, but it’s more likely to drift back down below six per cent.

“The New Zealand dollar will adjust to shifts in economic sentiment and risks. A firmer dollar may not be desired, but solid-looking economies don’t tend to see their currencies weaken. If growth prospects dim, our dollar will wane, so be careful about what you wish for.”

NEW VEHICLE MARKET SEGMENTATION - January 2016

Jan '16

Jan '15

Mth %

2016 YTD

2015 YTD

% YTD

Jan '16

Jan '15

Mth% diff

2016 YTD

2015 YTD

% YTD

Passenger

4,840

5,202

-7.0

4,840

5,202

-7.0

Passenger

4,840

5,202

-7.0

4,840

5,202

-7.0

Private

1,590

1,634

-2.7

1,590

1,634

-2.7

SUV

4,036

3,757

7.4

4,036

3,757

7.4

2,589

2,252

15.0

2,589

2,252

15.0

335

355

-5.6

335

355

-5.6

93

82

13.4

93

82

13.4

11,893

11,648

2.1

11,893

11,648

2.1

Business Gov’t Rental SUV

1,738

2,017

-13.8

1,738

2,017

-13.8

Light Commercial

199

130

53.1

199

130

53.1

Heavy Commercial Other

1,313

1,421

-7.6

1,313

1,421

-7.6

4,036

3,757

7.4

4,036

3,757

7.4

Total market

Private

1,617

1,340

20.7

1,617

1,340

20.7

Micro

90

158

-43.0

90

158

-43.0

Business

1,777

1,685

5.5

1,777

1,685

5.5

Light

1,234

1,452

-15.0

1,234

1,452

-15.0

-26.1

Small

1,909

2,182

-12.5

1,909

2,182

-12.5

-10.9

Medium

707

627

12.8

707

627

12.8

Large

557

588

-5.3

557

588

-5.3

60

27

122.2

60

Gov’t

51

Rental

591

Light Commercial Private

2,589

69 663

-26.1 -10.9

2,252

15.0

51

69

591

663

2,589

2,252

15.0

687

600

14.5

687

600

14.5

1,720

1,565

9.9

1,720

1,565

9.9

Gov’t

84

73

15.1

84

73

15.1

Rental

98

14

600.0

98

14

600.0

11,465

11,211

2.3

11,465

11,211

3,894

3,574

9.0

3,894

3,574

Business

Sub Total Private Business Gov’t

5,235 334

Rental

5,267 272

-0.6 22.8

5,235

5,267

334

272

48

41

17.1

48

41

17.1

127

85.0

235

127

85.0

SUV Small

1,057

1,170

-9.7

1,057

1,170

-9.7

SUV Medium

1,551

1,509

2.8

1,551

1,509

2.8

2.3

SUV Large

1,355

1,030

31.6

1,355

1,030

31.6

9.0

SUV Upper Large

73

48

52.1

73

48

52.1

-0.6

Light Buses

64

34

88.2

64

34

88.2

22.8

Vans

343

372

-7.8

343

372

-7.8

Pick Up/Chassis Cab 4x2

827

719

15.0

827

719

15.0

Pick Up/Chassis Cab 4x4

1,355

1,127

20.2

1,355

1,127

20.2

335

355

-5.6

335

355

-5.6

93

82

13.4

93

82

13.4

11,893

11,648

2.1

11,893

11,648

2.1

2,098

-4.6

2,002

2,098

-4.6

335

355

-5.6

335

355

-5.6

Other

93

82

13.4

93

82

13.4

Total

11,893

11,648

2.1

11,893

11,648

2.1

Call

People Movers

27 122.2

235

2,002

Heavy Commercial

Upper Large Sports

Heavy Commercial Other Total market

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Issues accessing certain models compared to registrations last year.

Some 6,689 new cars crossed the border last month, which was down by 24 units – or by 0.4 per cent – on the previous January.

Sales amounted to 8,899 compared to 9,010.

Stock numbers reduced from December’s total by 2,210 units, but they were still up by 7,164 to 55,573 compared to January 2015.

For the same period, average daily sales increased to 260 units from 250 meaning there were 10 more registrations per day over the 12 months compared to the same amount of time to January 2015.

Days’ stock in hand jumped to 214 from 193, or by 21 units, between January 2014 and last month.

Dealers who spoke to Autofile have varying stock levels of new passenger cars, but are generally upbeat about the rest of the year.

Tony Gibson, dealer principal of Gethings Motors in Upper Hutt,

says: “We have two showrooms and our capacity is for about 45 units.

“For our new vehicles, we are lucky to have Mitsubishi’s 10-year or 160,000km warranty. We have good follow-up and customer relations.”

Kelly McKay is the branch manager of HMC Motors in Paraparaumu, which holds Holden and Suzuki franchises.

She says that across the company’s two yards – one of which is in Levin – popular models are economy-sized passenger vehicles with a tapering off in other segments.

“We experienced really good sales numbers in that smaller sector in 2015 and hope it picks up for the coming year,” adds McKay. Brian Watts, of Watts Motors in Gisborne, says: “We would have 25 to 30 units on the yard if our stock levels were full, while Mitsubishi’s Triton is popular.

“Sales nationally seem to be trending toward SUV-style vehicles,

Dealer stock of new cars in New Zealand DAILY SALES - 12-MONTH AVERAGE

Days stock at hand

220 200

(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

-1011

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

Jan ‘16

6,689

8,899

(2,210)

55,573

260

214

Year to date

6,689

8,899

(2,210)

Change on Jan 2015

-0.4%

-1.2%

14.8%

Less IMPORTED

Less SOLD

MORE STOCK

marac.co.nz

January 2015 — January 2016

180 160

January 2014 — January 2015

140 120 100 80 60

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Jan

Dec

Nov

Oct

Sept

Aug

JuL

Jun

May

40

Mar

9,010

Stock

Feb

6,713

Jan ‘15

Variance

JAN

Registered

Days of stock

CAR Sales Imported

and we have the Outlander and ASX. We have good supply of the ASX at the moment. The Lancer has also been good for us and is hard to beat.”

One of 2015’s success stories was Subaru of New Zealand, which achieved an all-time sales record to beat its previous best figures in 2005.

It surpassed its previous record of 2,237 by selling 2,267 units last year.

“At the beginning of 2015, our ambition was to increase sales year on year,” says managing director Wallis Dumper. “But to finish up 25 per cent ahead was a case of our stars aligning.”

Subaru’s Outback achieved a record with 1,175 sales – almost double that of the previous record of 591 set in 2006.

Looking ahead to the rest of 2016, Dumper says the marque plans to build on last year by securing “additional supply from our manufacturing company, Fuji Heavy Industries in Japan, to fulfil increased demand”.

Days stock in NZ - new Cars

APR

R

egistrations of new passenger vehicles remained steady year on year to January with plenty of positives being reported by franchises.

Paul Saunders, dealer principal of Saunders Mitsubishi in Thames, says: “Sales of our marque have gone up although getting stock on certain models has been a problem.

“This is especially the case for anything Mitsubishi is doing specials on, such as the $29,990 Triton, which you would expect at that sort of money.

“They are coming through, but it’s just a matter of waiting for the stock. Even though the downturn in farming occurred, we are still seeing a lot of interest in new utes.

“The other factor in regards to commercial vehicles here is that Mitsubishi doesn’t do a van anymore, so the ute is the go-to.”

The overall market for new passenger vehicles remains steady

Dealers report stock shortage L

evels of stock for used cars are fluctuating in the wake of oversupply in 2015 with some dealers reporting it’s hard to access good vehicles for their yards.

Peter Wilson, manager of Superior Cars in New Plymouth, believes the exchange rate with the yen has had the biggest impact on stock numbers, especially when looking at the numbers crossing New Zealand’s border.

“They have decreased quite a lot, although there are other factors feeding into that, such as the economy and particularly Japan’s,” he told Autofile.

“There has been a bit of a run and overstocking, but the exchange rate has forced that to settle so now it’s just about replacing stock with quality units.”

Gareth Karrasch, director of 317 – The Van and Ute Specialists in Takanini, south of Auckland, says

with access to trade-ins decreasing having a well-stocked yard will be a challenge during 2016.

“We don’t do a huge trade-in business,” he says. “We will take them, but that’s not our main business. People will always find someone who wants the car they have and sell privately.

“A lot of our stock is ex-lease and this provides us with good used trade and former franchise units.”

Another factor is variant supply whereby the exact model a customer requests isn’t always available.

“In terms of keeping up with our stock levels, it’s hard, but only because there are so many variations of each type,” explains Karrasch.

“For example, with Toyota’s Hiace you may have a set model, but the customer may want a manual with a different motor, so you are best to stock what you have and try to meet up with variants as they arise.”

Overall, Karrasch is unsure about a boom in the coming year.

This is due to factors carried over from 2015.

“Stock will be hard to get in 2016 because a lot of ex-lease stock is going over to online sites with buy-now options.

“If there is a shortage of stock and everyone starts looking to Japan, there will be a smaller number of models available there.

Everyone is looking there and the competition is going to be huge.”

Ross Brown, of Greenfield Motors in Greymouth, says: “We are a Suzuki dealer and trading similar to what we were a couple of years ago.

“The marque’s cars are pretty popular things to sell, especially the Jimny, and the key for us is that we are building a new workshop on the main road.”

Cameron Nathanson, of Capital City Cars in Wellington, says: “We believe 20 to 30 per cent of our

Dealer stock of used cars in New Zealand

Days stock in NZ - Used Imported Cars

CAR Sales

180

Imported

Jan ‘15

160 140

100

January 2015 — January 2016

60 40 January 2014 — January 2015

20

marac.co.nz

Jan

Dec

Nov

Oct

Sept

Aug

JuL

Jun

May

APR

Mar

Feb

0

JAN

Days of stock

120

80

sales come from repeat business, which is huge and means that onethird of every month consists of repeat sales. Referrals also make up a huge percentage.”

While January saw a slight drop in first-time registrations of used imported passenger vehicles to 11,675 from 11,791 in the same month of last year, the decrease was marginal at one per cent.

The number of cars crossing the border last month decreased by 370, or by 3.6 per cent, compared to January 2015.

January’s stock level came in at 23,777 units with imports outstripping sales by 1,906.

The level of unsold stock has increased by 6,966 units, or by 41.4 per cent, over the past 12 months.

Daily sales over a 12-month average were 393 in January compared to 362 in the previous year, which means 31 more cars were sold.

10,139

Registered

11,791

Variance

-1,652

Stock

16,811

DAILY SALES - 12-MONTH AVERAGE

Days stock at hand

362

46

Feb ‘15

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

Jul ‘15

11,944

13,891

-1,947

24,588

389

63

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

Jan ‘16

9,769

11,675

-1,906

23,777

393

60

Year to date

9,769

11,675

(1,906)

Change on Jan 2015

-3.6%

-1.0%

41.4%

Less IMPORTED

Less SOLD

MORE STOCK

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