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Issue 11-2014 19 Jun 2014
Record immigration boosts vehicle sales
In this issue
mmigrants are continuing to pour into the country and this – along with the general lift in the economy – could cause a substantial increase in sales for car dealers. Statistics New Zealand reports April recorded the second-highest ever seasonally adjusted net gain of 4,100 migrants. Using calculations based on the size of New Zealand’s lightvehicle fleet and population, estimates by Autofile show 7,148 additional passenger vehicle sales may have been attributable to
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population growth for the first four months of this year alone. In that period and on a seasonally adjusted basis, New Zealand experienced net migration of 14,500. This additional population gain means businesses should benefit proportionally where these migrants settle. Major centres, such as Auckland and Christchurch, are likely to see most sales gains from these newcomers. If the trends continue, then 2,500 light-vehicle sales may be directly attributed to increased
migration every month of 2014. That’s 30,000 units or a 13.7 per cent estimated increase based on sales of all first-time registered vehicles – new and used – in 2013. For the first four months of 2014 across all segments, new and used passenger and light commercial sales are up 21.86 per cent compared to the same period last year. At the end of last year, there were 3,112,192 light passenger vehicles in New Zealand’s fleet and a population of 4,433,000, which equates to 702 vehicles for every 1,000 people.
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Industry Association says mandatory electronic stability control can be introduced without severely limiting access to compliant stock overseas. It’s also consulting with officials about accelerating the exit of older and less-safe vehicles from the fleet. Chief executive David Vinsen says the final phase of the Vehicle
Exhaust Emissions Rule from January 2012 is now working through the system, which is allowing access to greater numbers of compliant used imports. For Vinsen’s views on this year’s volumes of used imports and unsold stock levels, turn to page 27.
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Issues for supply and stock he type of used cars that can be imported and the fleet’s make-up may be affected by future government policies. It’s thought no new issues are likely to impact on the trade in the near future, but there is ongoing policy work in safety and environmental areas. The Imported Motor Vehicle
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Dealers must adapt to new laws
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fter the “hurrah” in the last issue of Autofile on alterations to the Credit Contracts and Financial Services Law Reform Bill, it’s back to the legislative grindstone for car dealers. Last-minute changes during the final reading of the loan-shark laws were crucial in safeguarding commission on credit-related insurance policies. But no such luck was evident when the Consumer Law Reform (CLR) Bill passed its third reading in December when some new legislation came into force. And June 17 was D-Day for many in the automotive sector with major amendments to the Consumer Guarantees Act (CGA) and Fair Trading Act (FTA) becoming enforceable. Used car dealers now have to overcome all trader-to-public transactions falling under the auspices of the CGA. The new regime means all such sales – including those at physical and online auctions – will afford consumers the full weight of the law. During the submissions stage, the industry expressed concerns that all ways of selling older cars without CGA protection would disappear. Those fears were basically ignored amid worries the select committee failed to grasp how the market could be adversely affected. Having the guarantee of acceptable quality apply to low-end stock will create risky business for some dealers. They could be landed with hefty repair bills higher than sticker prices if unidentifiable hidden defects later come to light. There are also concerns the public will sell more vehicles in the grey market where they have no consumer protection whatsoever
instead of going to car dealers. This in turn could see more people being ripped off by unregistered sellers and more unsafe vehicles on our roads. Legitimate car traders will have to adapt to the new rules, which conversely may create an opportunity to exit less-safe and older vehicles from the fleet. In other countries, such as the UK, people are paid by the government to basically trade in clapped-out vehicles to scrapyards. If issues arise at the lower end of the market, perhaps a similar scheme could be looked at here. It’s not just the used vehicle industry that will feel the clout of the CLR changes. Franchises may be hit by rules governing uninvited direct sales and the five-day cooling-off period for buyers now in the Fair Trading Act (FTA). It’s also an offence for traders to make unsubstantiated representations without reasonable grounds – hyperbole excluded, of course – while car dealers must make it known they are traders when selling online. Then there are disclosures that have to be made in regards to extended warranties, as well as increased fines for those caught flouting the FTA with the Commerce Commission pledging to come down tough on offenders. The FTA changes “better reflect the digital and commercial world, and align New Zealand and Australian consumer law”, according to the government. It remains to be seen if they – and amendments to the CGA – will work in the real world, what will happen if they don’t and how the industry adapts.
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news [continued from page 1]
Replacement cycle increasing Chris Tennent-Brown, an economist with ASB, believes the migration trends affect demand across the board. “It also takes some pressure off the labour market that can get pretty tight and, overall, things are going well in New Zealand right now,” he says. “A lot of the flows are down to what New Zealanders are choosing to do. Some of the migration patterns are because Kiwis aren’t going overseas and it’s important to look into those groups of people who drive.” Shamubeel Eaqub, of the NZ Institute of Economic Research, agrees more people are staying here instead of crossing the ditch. “There’s now less competition with Australia for local staff,” he says. Nevertheless, one-in-four people living in New Zealand
Shamubeel Eaqub
Chris Tennent-Brown
were born outside the country, according to figures released last month from the 2013 census. That’s an increase of nearly eight per cent since the previous census of 2006. People born in Asia now make up 32 per cent of the overseasborn population overtaking the
proportion from the UK and Ireland, at 27 per cent, for the first time. “The benefits of people coming in have been concentrated in Auckland with fewer people going to the regions,” says Eaqub, who points out some migrants may be less likely to need a car than others.
“There are a lot of different types of migrants coming in and residency is a small part. “There are those on work visas, who bring their human capital to offer skills we have a shortage in, and students who stay for three or four years. “Many migrants who come in prefer to stay in cities, as well as a lot of students, so they may be less likely to need cars.” The statistics reflect many migrants shunning smaller centres for cities, with Auckland receiving 16,000 in April, Canterbury 5,300, 900 heading for Otago and 700 going to Wellington. Increases in total lightvehicle sales for Auckland and Christchurch reflect some of that increased migration. Auckland saw an increase of 20.9 per cent or 6,365 units
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news from 30,466 to 36,831 for the same period last year. Sales in Christchurch rose by 2013 units – or a healthy 24.4 per cent – from 8,248 to 10,261.
RISING INTEREST RATES
are being really careful about what they do and are always asking for advice about where the interest rates are heading,” she says. “I think people are being thoughtful about what and
The Reserve Bank’s monetary policy over recent months has been to hike up interest rates, but economists contacted by Autofile believe this is unlikely to hit the motor vehicle market. “If you look at consumer confidence surveys, there has been a higher response to those saying yes to big-ticket items and that has some sort of impact on when they are borrowing purchasing decisions,” says Chris knowing that interest rates are Tennent-Brown. going up as well.” “The economy is going to keep on growing and the Reserve MORE PEOPLE, GROWING FLEET Bank just wants it to grow at a Tony Everett, dealer services sustainable pace. and mediation manager with “You would expect activity to the Motor Trade Association pick up, but not at the rates when (MTA), believes New Zealand’s interest rates were low.” increasing population is pushing Shamubeel Eaqub doesn’t see up the fleet’s size. interest-rate rises having major “There’s almost a car for effects on the car market. every person now,” he says. “The “Interest rates are cheap benefits include more trade compared to recent times, activity coming from additional so there’s still an incentive to rates of ownership because borrow,” he says. more people are coming into the “They are normal rather than country. too expensive as the situation “We think the fleet’s growth was in 2007 when borrowing was will be more than last year. about 10 per cent causing the Statistics NZ projects the 2007/08 recession. country’s population to “The vehicle reach five million in replacement cycle the mid-2020s is really starting and – unless to catch up Jason Jarvis, dealer principal at City something and new Nissan Takapuna on Auckland’s North changes cars have Shore, says the business has seen a trend of significantly become more migrants purchasing vehicles than in – the most cheap to previous years. He has “definitely noticed” average common buy.” trade-ins dropping in value as the vehicle method of New replacement cycle starts to catch up. transport Zealand “We are doing lots of new car deals will still be the business when the trade-ins are worth private car, says confidence is less than $1,500.” the MTA. growing in the face Everett says scrappage of rising interest rates, rates have fallen from a high of declining dairy prices and its 174,000 cars in 2005 to 131,000 persistently high dollar. last year – the lowest in four Tessa Price, chief executive years – and this may cause issues of UDC, is positive growth in the further down the line. lending sector will continue even “This is putting more pressure if interest rates rise. on infrastructure. It’s good for “Talking to my customers, they
business but New Zealanders are starting to think about it, particularly in Auckland where congestion is becoming a big issue.” When compared with Australia’s five largest cities, Auckland has the highest
strategy is looking into getting rid of less-safe vehicles from the fleet. “An encouragement mechanism for this is one of the challenges being looked into at the moment. “But if cars have utility values, trade-in values and still pass
“People are being thoughtful about what and when they are borrowing knowing that interest rates are going up as well.” – Tessa Price, UDC proportion of trips to work using private vehicles. It’s also at the bottom for public transport use on 10 per cent, with train journeys only making up about one per cent. “There is a point for critical mass when public transport becomes doable, while the government’s Safer Journeys
warrant of fitness inspections, people may as well keep driving them until they get to their end of service.” Everett believes New Zealand will need to have a wider discussion about the growth of the national fleet, what the implications are and what it means for the wider community.
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news
Links with Australians strengthened
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he Imported Motor Vehicle Industry Association (IMVIA) says any work it does across the Tasman will not adversely impact on its members and sponsors in this country. Chief executive David Vinsen and North Island chairman Graeme Macdonald have returned from Sydney after meeting with Australian colleagues, who have set up a similar organisation in advance of any deregulation of the market there. Local manufacturing across the ditch will end over the next few years as Ford, Toyota and Holden exit car-making. The Productivity Commission has lodged a report with the federal government on the way forward and among its recommendations is easing restrictions on used vehicles entering the country.
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Although the outcome of this is still unknown, the situation as it stands has resulted in the Australian Imported Motor Vehicle Industry Association (AIMVIA) being established in anticipation. It is now seeking advice and assistance from IMVIA,
– David Vinsen, chief executive of the IMVIA
and how New Zealand worked through the deregulation of its automotive sector. “The Australians have done quite a lot of work on it already with their association having a
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developing our relationships.” While some concerns have been raised about the way forward, the IMVIA is keen to avoid regrets by “not properly dealing with any offsets”. There’s already some talk about commonality of standards between the two countries and similar
“We have to discuss the details and that’s likely to be a management contract to supply services.”
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board of directors and their first membership cheques coming in,” Vinsen told Autofile. “They have agreed to contract the IMVIA to provide them with a suite of services across a raft of matters.” These will focus on membership, promotion of the
AIMVIA and advocacy around the deregulation of the sector there. Vinsen says the basis for what’s needed by the Australian association has been established. “We now have to discuss the details and that’s likely to be a management contract to supply services.” Vinsen stresses the IMVIA’s work there will be done on a strictly commercial basis. “It will be a revenue stream for us and a lot of our members want to get involved,” he says. “Service providers can see opportunities, while car importers and dealers see a chance to take business models into Australia or to go into partnership with a company there.” The IMVIA has fielded some questions about why it’s getting involved and what impact it will have on access to stock for used car dealers and importers here. Vinsen believes any changes in Australia are still a few years off. Indications are that for two or three years afterwards, higher-end stock will probably be sourced from the UK “before anyone looks at volumes from Japan”. He adds: “That’s all a fair way down the track, but we now know what we’ve been tasked to do. “The management agreement will be negotiated over the next few weeks and then we will be
legislation in the future. “They have asked for our help to show their Australian colleagues how processes here work,” says Vinsen, who will be leading the project for the IMVIA. “There are synergies but we will ensure our members and service providers aren’t disadvantaged by any of our work in Australia. “There may be changes over time, but at this stage they have no need for technical staff because they are technical people in their own right. “We also need to be positioned for any changes in Australia because it’s an important situation. What we are doing is of benefit to the whole industry.” While the IMVIA will be working with the Australians on membership, recruitment, sponsorship and advocacy in the near future, they may need help with communications and technical issues further down the track. The Productivity Commission there has sought more information on the benefits and costs of removing restrictions on the largescale importation of used vehicles, including the costs involved and ensuring compliance. Last year, Australia imported about 11,000 used cars compared to 100,700 in New Zealand. But the fleet across the Tasman is younger because of new car sale levels.
news
Eco-friendly cars fail to take off A
report published by the Japan Automobile Manufacturers’ Association (JAMA) highlights the take-up of cars with alternative drivetrains came to about five per cent last year. Since government tax incentives and subsidies to buy eco-friendly vehicles were introduced in 2009, new-energy vehicle sales have gone up. But in 2013, about 4.14 million of these units were on Japanese roads or 5.4 per cent of all vehicles in use. Japan’s national fleet amounted to 76.62m units last year, of which 72.48m – or 94.6 per cent – had conventional drivetrains. During 2013, hybrids made up most of its so-called eco-vehicles with 3.87m registered, states The Motor Industry of Japan 2014 report, and 1.12m sales. The number of new hybrids sold last year was 1,015,356, which was up from 857,246 in 2012, while clean diesels came second on 78,384 – an increase from 55,513. Electric vehicles were third on 15,594, up from 13,911, with plug-in hybrids next on 12,972 compared to 13,178. “More widespread use of these vehicles requires not only advances in technology, but fuel and energy infrastructures and purchasing incentives,” the report states. JAMA says next year’s CO₂ emissions target for passenger cars is a 24 per cent increase in average fuel efficiency compared to 2004. Marques are working to advance fuel technologies so they comply with targets to be enforced in 2020. “Vehicles with greater efficiency help counter global warming through reduced CO₂ emissions, while reduced tailpipe emissions improve air quality,” says the report. “For petrol, diesel and LPG vehicles, the government has certification criteria keyed to latest efficiency and emission standards. “To boost public awareness of vehicles with advanced fuel efficiency or low emissions, they are identified with coded stickers.”
Conserving fuel Motorists in Japan are being urged to increase fuel efficiency and reduce emissions by improving their driving habits. JAMA has an awareness campaign with the government and industry partners to promote fuel-conserving “eco-driving”, which urges drivers to adopt 10 smart tips to achieve this. Marques are kitting out more models with fuel-efficiency gauges and systems for real-time onscreen displays on performance. They are also developing idlingprevention systems and eco-mode buttons to activate fuel functions.
CUTTING DOWN ON NOISE Car noise in Japan is regulated by standards on acceleration, steady running and stationary exhaust proximity. All have become more stringent requiring marques to develop compliant technology. Noise intentionally emitted through tampered mufflers is deemed a public nuisance. Mufflers must be tamper-resistant to prevent noise-limiting mechanisms being altered, while replacements must meet tough standards. The government is updating regulations in line with studies conducted under the United Nations’ World Forum for the Harmonisation of Vehicle Regulations. It now plans to tackle motorbike acceleration noise, and regulate tyre noise from cars, trucks and buses. It’s also discussing the quietness of electric and hybrid vehicles at low speeds to create global technical standards. Also, JAMA believes road safety involves three factors – vehicles, users and infrastructure – and greater road safety needs to progress in all three areas. Its members are striving for greater active safety by upgrading equipment and expanding on-board installation to help prevent accidents. They are also aiming to increase passive safety through enhanced structures and features to mitigate injuries when accidents happen.
Toyota’s Aqua hybrid may have topped Japan’s models chart last year. But cars with alternative drivetrains only made up about five per cent of 2013’s national fleet, according to JAMA
RECYCLING OLD VEHICLES Manufacturers and importers have to recover, recycle and dispose fluorocarbons, airbags and automobile shredder residue (ASR). Compliance with Japan’s end-oflife vehicle (ELV) laws was anticipated to enable ASR to be recycled at a rate of 70 per cent by 2015. This was to result in a recycling vehicle-weight rate of 95 per cent, which was surpassed in 2008. Japan’s infrastructure is the first
globally to administer the entire process of car recycling – from ELV recovery to final disposal – on the basis of electronic manifests or compliance checklists. JAMA helped develop and implement the system, and gave financial support to develop software. In line with efforts to “reduce, reuse, recycle”, cars are now being designed using lightweight materials that are easy to dismantle and recycle.
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news
Law changes affect dealers L
ong-awaited Consumer Law Reform (CLR) Bill changes take effect this month with car dealers being widely affected. Some new laws came in when the legislation was passed in December last year, while many will impact on the automotive industry from now. A major difference concerns the Consumer Guarantees Act (CGA) applying to all trader-to-public transactions – with auction and tender sales being subject to the act from June 17. This applies to all physical and online auctions, including those with $1 reserves. Sellers need to consider their trade-in practices because disposing of stock through these channels may no longer be viable given potential liabilities for problems that occur later. Under the CGA, it’s the trader’s
responsibility to disclose known faults on listings so people are informed of potential issues before buying. Dealers may be liable for defects discovered by clients within a reasonable time if undisclosed at the point of sale. For older vehicles with no
mean there are higher penalties for misleading and deceptive conduct, false representation, unfair practices and issues around product safety, while online traders must identify their business status. Uninvited direct sales – formerly door-to-door sales – may also hit business practices.
Engagement with consumers can be prolonged by encouraging them to visit the dealership to assess cars before committing to buying. This can avoid sales qualifying as uninvited and direct, while deliveries after such transactions can be put off until after the cool-down period to avoid buyers cancelling contracts
“We have had a great response so far with direct dealers confirming RMVT numbers.” – Natalie Beckham, Trade Me Motors
known problems, the Imported Motor Vehicle Industry Association recommends using a disclaimer, such as: “This is an older highkilometre vehicle. There is potential for repairs and maintenance to be needed in the future.” Fair Trading Act (FTA) changes
When a trader initiates contact with a consumer in a personal capacity at home, place of work or by phone, and that approach was uninvited by the buyer, the transaction can be classed as an uninvited direct sale and subject to five-day cooling-down period.
within five days. Contracts, such as vehicle offer and sale agreements (VOSAs), must include new disclosure obligations with buyers being verbally informed of those rights. If new obligations aren’t met, contracts can be cancelled.
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NCAP has been has allocated AU$2.2 million by the federal government over the next two years. Jamie Briggs, Assistant Minister for Infrastructure and Regional Development, says it has increased safety-ratings coverage to 95 per cent of new cars and light commercials sold across the ditch. He says: “The government is committed to working with organisations such as ANCAP to raise awareness of safety, and reduce deaths and injuries through safer vehicles, roads and drivers.” Lauchlan McIntosh, ANCAP’s chairman, says it’s reassuring to see the government continue to recognise the significance of safer vehicles and the independent role it plays through continued investment in its testing regime. “The commitment to continue at least for a further two years will complement ongoing commitments from all stakeholders,” he adds. “ANCAP is the foundation for
safer vehicles in the UN Decade of Action for Road Safety and Australia’s national road safety strategy. “The continuation of federal funding underscores the important role vehicle safety plays in reducing road trauma. This is of particular relevance during the decade of action as we strive to meet a 30 per cent – or greater – reduction in deaths and serious injuries by 2020. “This funding will see ANCAP enter the next phase of vehiclesafety assessment as we recognise the growth of active technologies and assess their effectiveness.” McIntosh believes manufacturers recognise and accept the value of the ANCAP process in encouraging new car buyers, including fleet managers, to look for the safest vehicles available. “As we see more imported cars entering our market, the continued role of ANCAP as the only independent organisation providing detailed safety comparisons is essential.”
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Warranty policy providers need to define coverage terms above those in the CGA, while extended warranties are subject to a cooldown period of five working days. Sellers’ claims about products or services must have supporting evidence and be reasonable, and there are new criteria for businessto-business sales being contracted out of the CGA and FTA. The Commerce Commission can now issue infringement notices and fines of up to $2,000 for clear-cut offences, such as failing to display consumer information notices.
ADVICE FROM WEBSITE Trade Me says the guts of the changes is online sellers making clear they are “in trade” so people know when CGA and FTA protection applies. Offenders can be fined if this isn’t disclosed. Previously, consumers were only protected via fixed-price offers and the buy-now function. Sellers must establish if they are in trade or not, with the website
giving advice in its help section. Trade Me has made it easy for people to disclose being in trade by creating a label that appears next to user names on listings. Anyone can sell up to six cars in any 12-month period after which they must become a registered motor vehicle trader (RMVT). Trade Me is entering the RMVT number into dealers’ account backgrounds for the tags to display automatically on listings. “We are contacting direct dealers to confirm their numbers and save them to their accounts,” Natalie Beckham, of Trade Me Motors, told Autofile. “Doing this will also improve search results. When consumers choose dealer-only listings, they will come up regardless of the advertising model traders use. “We have had a great response so far with direct dealers welcoming the changes and making contact to confirm RMVT numbers.”
Types of online selling The Commerce Commission says there are different ways of selling online. They include websites and smartphone applications, emails, text messages, social media, online auctions such as Trade Me’s, and daily deal and group-buying sites. The Fair Trading Act and OTHER LEGAL MATTERS Consumer Guarantees Act apply to Amendments made in December offers and sales made through 2013 mean if dealers organise all of these channels finance for goods or services rejected and more. by buyers under the CGA, they can consumer – to be disadvantaged. be liable for the credit agreement. A standard form contract is This change essentially reflects created ahead of an agreement what already happens in Motor with a consumer, so its terms Vehicle Dispute Tribunal decisions. aren’t negotiated with each buyer. The Commerce Commission Examples of these include rental has compulsory interview powers car agreements. and can compel somebody to People in breach of significant give evidence. If a trader agrees a provisions of the FTA at least twice remedy but fails to act on it, it can in a 10-year period can be banned be enforced by a court. from managing a business for up to From June 17, 2015, the commission can seek orders declaring a decade. terms in standard-form consumer Visit www.autofile.co.nz for more contracts as unfair. An unfair term Commerce Commission advice causes one party – usually the
Law-breakers beware
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he Commerce Commission is warning businesses that fines for certain breaches of the Fair Trading Act (FTA) have drastically increased as part of the consumer law reforms that came into effect on June 17. There are now bigger penalties for misleading and deceptive conduct, false representations, unfair practices and issues around product safety. They have gone up from $60,000 to $200,000 for individuals and from $200,000 to $600,000 for businesses. Individuals who repeatedly break the law can also face orders banning them for up to 10 years. Kate Morrison, general manager of competition, says: “The commission has been given more powers to protect consumers. These will allow us to carry out investigations faster and more effectively. “For example, there are new requirements about
substantiation. This means it’s now illegal for businesses to make claims they can’t back up. “This will make a real difference in addressing deceptive and misleading conduct.” The commission is encouraging Kiwis to know their rights before buying rather than waiting until they have problems. “If you have a problem with goods or services – or are concerned about being misled – keep your receipt and go back to the trader to try to resolve it,” says Morrisson. “If that doesn’t work, contact the commission, take a case to a disputes tribunal or get advice from a Citizens Advice Bureau.” Laws banning unfair contract terms will come into force on March 17 next year. Autofile Online has in-depth coverage of the law changes. Log onto www.autofile.co.nz for about fines and infringement notices, the guarantee of acceptable quality and uninvited direct sales.
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new cars
Car sports reinforced plastic
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he arrival of the BMW M4 convertible – with combined fuel consumption of 9.1-8.7l/100km and emissions of 213-203g/km – sees the marque making an addition to its sports car line-up. The new model replicates the performance figures of the new M3, but places appearance and open-top driving centre stage. The convertible shares the lines of its open-top 4 Series siblings with its own coupe line and shorn-off B-pillars with the hardtop closed. Styling includes a power dome
BMW’s new convertible M4
for the bonnet, exterior mirrors in twin-stalk style, with flared wheel arches going over forged light alloys with tyres in 18-inch, and optional 19-inch, format. Powering the BMW M4 convertible is a newly developed six-cylinder in-line engine with M TwinPower Turbo technology. It generates maximum output of 317kW/431hp from its threelitre engine and has peak torque of 550Nm across a wide rev band. The sprint from 0-100kph takes 4.4 seconds with the optional sevenspeed M double-clutch transmission.
The car also has BMW’s “intelligent lightweight construction”. For example, the bonnet, front side panels and many chassis components are made from aluminium. Ultra-lightweight and durable carbon-fibre-reinforced plastic (CFRP) is used in many areas, such as the single-piece driveshaft, which makes for a weight saving and reduction in rotating masses. The CFRP precision strut in the engine compartment is 1.5kg lighter but offers better rigidity than an aluminium part.
The three-section folding sound and winter-proof metal roof has full interior lining and opens in less than 20 seconds – and, if required, while travelling at up to 18kph. The convertible can also be ordered with options to enhance its appeal and comfort levels. The BMW Individual range of equipment offers a unique driving experience, while colours and materials can be fine-tuned. Pricing and specifications will be available closer to the launch in this year’s fourth quarter.
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itsubishi’s new 2015 ASX features upgrades and competitive pricing after the sell-out success of its Lancer GSR. With a special launch price of $29,990 plus on-road costs, the new XLS two-wheel-drive has been positioned “to turn more than a few heads”. It’s being joined by a new VRX, with both models sporting improvements that aim to add to the ASX’s reputation as a versatile crossover. The revised CVT transmission’s mapping gives swifter acceleration and a better drive, while the marque hopes 17-inch machinefinished alloys and a blue colour
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option will boost street appeal. The XLS adds a sports seat trim while its improved fuel efficiency comes in at 7.4l/100km. Both models boast five-star ANCAP safety ratings, with the VRX having the added benefit of LED daytime-running lamps. The ASX has made a solid impression on the market since being introduced in 2010. “Its competitive market position follows the lead of our recent Lancer GSR promotion,” says Daniel Cook, Mitsubishi’s head of sales and marketing strategy. “The Lancer is the country’s best-selling small sedan, and demand was so strong for the GSR that we had to order more stock. We’re confident the new ASX will be equally wellreceived.”
news
Website chief calls time after decade
M
ike O’Donnell is resigning O’Donnell, who holds an as chief operating officer honours degree in political science of the Trade Me Group to and philosophy, describes moving turn his hand to something different on as a tough decision. – although he doesn’t know what “I love Trade Me and have that is at the moment. relished being part of the journey,” An exact departure date is yet he says. “June marks 10 years for to be announced, but he will be me here, so it’s time I turned my involved in the handover to his hand to something different. successor and is “I haven’t yet expected to stay in settled on what the his position until at next venture will be, least mid-August. but wanted to give The self-confessed Trade Me a decent petrolhead – or MOD period of notice. as he’s also known – “I have full first joined Trade Me confidence in in 2004 and originally the team and the led its commercial business’ direction, division. and wish them all After a stint at the best as Trade Me Gareth Morgan continues to grow Investments, he and do new things. returned as head of “It has been a operations. privilege being a In his current part of the story and role, he’s responsible to work for a chief for the website’s executive officer the marketplace and calibre of Jon.” operations teams. O’Donnell Before joining writes MOD’s the company, Motors newsletter, – O’Donnell, held something he says senior roles at AMP he will continue if Mike O’Donnell Trade Me agrees Capital Investors, Fonterra and to his “extortionate Forestry Corporation. He is also a payment demand of a 44-gallon professional director and business drum of 98 octane for each issue”. columnist. In his May issue, he covers the “Mike has made a huge Targa Rally in the North Island, contribution to Trade Me over the which is staged over 2,000km past decade,” says Jon Macdonald, of closed public roads and he chief executive. describes as New Zealand’s “He helped build our classifieds “ultimate road race”. verticals, has run our business “For some it’s a bucket-list operations and regulatory event, whereas for others it’s a functions, and recently led our regular event and a chance to crack marketplace division. 200kph on the King’s Highway. “He’s a person with incredible “It’s a sobering feeling to energy and drive, and will be sorely come around a corner at speed missed. On behalf of Trade Me to be confronted with two cars staff and our board, I would like to overturned with their drivers thank MOD for the great work he holding up green ‘okay’ flags, has done.” meaning you don’t need to stop.”
“I love Trade Me and have relished being part of the journey.”
Experienced Fleet Salesperson Giltrap Nissan Competitive Remuneration Package Newmarket, Full Time, Automotive Please Quote Reference Number 49905
• Proven high volume vehicle sales experience • Build on new and existing business relationships • Join the growing team at Giltrap Nissan in Newmarket The Giltrap Group is one of the strongest motor vehicle groups in New Zealand and we currently represent 14 brands at a retail level. We’ve been providing our customers with an exceptional level of service for over 50 years and are constantly on the lookout for staff who share our drive and [continued on page 8] commitment to quality. We’re currently looking for an experienced Fleet Salesperson to join our growing Nissan dealership in Newmarket. To be considered for this role, you’ll need to have proven high volume automotive sales experience at a dealership level. It’s also essential that you possess the following: • A high level of personal presentation • The ability to work in a team as well as autonomously • Strong negotiation and closing skills • A commitment to quality customer service We’re looking for someone who can not only nurture existing relationships, but also go out and actively seek new business. We’re continually growing and it’s important that you are prepared to put in the work to ensure this continues. In return, you’ll enjoy: • An attractive remuneration package • An 11-day working fortnight • A fully maintained company car • Ongoing training and support • Growth and development opportunities
If you think you have the experience and drive we’re looking for, APPLY NOW online to www.jobsdirectly.co.nz/49905.php and fill in the application form. Or send a covering letter and CV to Chris Davey at cdavey@giltrapnissan.co.nz
www.autofile.co.nz | 11
regional report
Diverse sectors keep city steady P
almerston North’s central location means it’s a logistics hub but that’s not the only sector supporting its diverse economy, which is built on education, health, the defence force, research and agriculture. The city of 80,079 people in the middle of the lower North Island is home to many freight distribution centres with key transport corridors – such as two state highways – serving it. Alongside this, a number of big businesses use the city as their base, including Toyota New Zealand, Sime Darby Commercial and Motor Truck Distributors. “We’re a major distribution base for the country,” explains Peter Day, of Peter Day Motors. “It’s only two hours to Wellington and three hours to the Hawkes Bay, so that’s essentially why a lot of major companies relocate here.” Day is positive about new businesses starting up in agriculture and distribution, and says government sectors help to keep the local economy stable. “About 50 per cent of the
Palmerston North’s main square and clock tower Photo: Destination Manawatu
people living in the region are employed by the government, whether in the army or by the university,” he says. “We don’t have a large immigrant population, but we’re getting a number of people from Australia moving back and service personnel from England relocating here for work with the New Zealand Army.” According to a Palmerston North City Council report, the largest employer in the city is the healthcare and social-assistance
Used car sales for Palmerston North - May 2013 to May 2014 Public to Dealer
Public to Dealer to Public Public
Total
Public to Dealer %
Used cars
New Cars
Used New Commercials Commercials
May ‘13
235
243
9
128
Jun ‘13
223
249
8
124
Jul ‘13
256
240
9
93
Aug ‘13
213
205
6
101
Sept ‘13
183
185
13
141
Oct ‘13
229
217
18
111
25.9%
Nov ‘13
234
160
18
112
26.2%
Dec ‘13
247
158
14
115
Jan ‘14
266
250
16
103
Feb ‘14
274
201
13
99
Mar ‘14
259
254
8
106
Apr ‘14
230
176
14
116
May ‘14
289
186
24
136
2903
2481
161
1357
NZ sales past 12 months 110789
86004
6929
32488
2.6%
2.9%
2.3%
4.2%
23.0%
-23.5%
166.7%
6.3%
1454
1518
825
3797
38.3%
40.0%
21.7%
Jun ‘13
774
1425
709
2908
26.6%
49.0%
24.4%
Jul ‘13
1066
1568
861
3495
30.5%
44.9%
24.6%
Aug ‘13
1072
1536
845
3453
31.0%
44.5%
24.5%
Sept ‘13
638
1403
714
2755
23.2%
50.9%
Oct ‘13
744
1478
788
3010
24.7%
49.1%
Nov ‘13
767
1468
818
3053
25.1%
48.1%
26.8%
Dec ‘13
584
1430
765
2779
21.0%
51.5%
27.5%
Jan ‘14
642
1558
787
2987
21.5%
52.2%
26.3%
Feb ‘14
652
1483
747
2882
22.6%
51.5%
25.9%
Mar ‘14
780
1650
823
3253
24.0%
50.7%
25.3%
Apr ‘14
904
1455
705
3064
29.5%
47.5%
23.0%
May ‘14
1410
1601
873
3884
36.3%
41.2%
22.5%
Annual total
10033
18055
9435
37523
26.7%
48.1%
25.1%
Change on May 2013
-3.0%
5.5%
5.8%
2.3%
18.7%
National YTD average
56.6%
– Robin Kidd, Eurocar Suzuki
City's vehicle sales - May 2013 to May 2014
Public to Dealer to Public % Public %
May ‘13
12 | www.autofile.co.nz
“It’s a great place for families. It’s accessible and there are great education options.”
24.7%
12-month total
% of national sales Change on May 2013 Population
New Zealand
Palmerston North
%
4,524,000
80,079
1.8
sector with 14.9 per cent of the total workforce. Linton Army Base, which is located just outside of the city, is the country’s largest, and Fonterra also has a strong presence with its research and development centre employing 400 people. Meanwhile, the tertiary education sector brings in more than $500 million to the area’s economy every year. Robin Kidd, dealer principal of Eurocar Suzuki, says: “We’re more of a distribution-focused town rather than manufacturing. “One of the things we don’t get is fleet sales because these decisions are made in Auckland, but those vehicles are still used in our area. “There’s a good vibe in Palmerston North. It tends to get a bad rap every time you turn on the television, but it’s a great place for families. It’s very accessible and there are great education options.” Recent census figures show net migration in the year ending March had a gain of 285 people compared to a loss of 296 in the year to March 2013. “It’s a good size as it is, but it would be nice to see more people,” Kidd told Autofile. “Massey University has big plans for it to be expanded and there are plans for growth in the research sector. “But Palmerston North is an easy place to live and we certainly
regional report Rose City Motors in Palmerston North
Peter Day and the Peter Day Motors dealership
don’t want to get into a situation where there are traffic jams.” The city is consistently ranked among the most affordable for purchasing or renting a house, and Kidd says this helps the vehicle market. “We’re reasonably successful in selling new and used cars, and people here have a bit more discretionary spending because they’re not paying off big mortgages.” Like other dealers around the country, Kidd has trouble finding skilled technician staff. “When we occasionally advertise, we get people who consider themselves qualified but have no real experience. They have only done pre-apprenticeship courses at one of the training institutions.”
PUSHING ABOVE ITS WEIGHT Peter Day has noticed the trend of more vehicles being sold across the country and this is reflected in the region’s sales figures.
Did you know? The Maori name Pamutana – transliterated from Palmerston North and Papaioea – is believed to mean “how beautiful it is”. It’s estimated the annual average unemployment rate in the Manawatu region during March was 7.2 per cent compared with six per cent for the rest of New Zealand. GlaxoSmithKline originally started in Palmy and has expanded to become a multi-national pharmaceutical company. Aaron Cruden grew up in the city. He made his debut for the Manawatu Turbos in 2008 before his first All Blacks game in 2010.
Despite only 1.77 per cent of the country residing in Palmerston North, the city accounted for 2.62 per cent of used passenger vehicle registrations and 2.88 per cent of new passenger sales. Alongside this, overall trader-topublic sales were up 24.67 per cent in the 12 months to May compared to the same period the year before. “I think a lot of people like to buy from a reputable dealer who has been around for a while, not one who’s working at the back of a house,” says Day. “We get a lot of customers going onto Trade Me then visiting our website.” Bevan Parker, of Rose City Autos, is seeing a trend of vehicles being sold outside the area and believes 50 per cent of the dealership’s stock is sold to customers living elsewhere. “A lot of our stock is sold through the internet and goes down to other places including Christchurch,” he says. “The general feedback we’re getting is that cars are more expensive there and we’re also carrying different stock, such as high-performance Japanese models and prestige European marques.” The dealership’s customers are generally aged under 30 and less likely to own a home. “A lot of people are renting these days because they don’t really aspire to have a house,” Parker says. “We do a lot of referral business and also sell a few vehicles to employees of the defence force, and they tend to have more stable incomes compared with other people of their age.” Troy Howard, of Troy Howard
Motors, says: “We do quite a bit of repeat business locally and have certainly noticed a growth in shipping cars nationwide, while we tend to put lots of information on the advert descriptions. “We’re still finding the market is very fickle. It’s quiet one week and then busy the next. I do think the economy gets talked up a bit.” Ross Thurston, dealer principal at Manawatu Nissan, says the business’ mainstay is the Navara
with the region’s rural sector accounting for 7.3 per cent of Manawatu’s workforce. “Recently the Navarra has struggled in the area with other new ute models coming out,” he comments. Simon Jackson, of Armstrong Motor Group, has recently transferred to Palmerston North from Dunedin. “The smaller centres are a bit more caring and you tend to know your customers a bit more,” he says.
www.autofile.co.nz | 13
Vehicles wanted
dealers Buying now
Audi VW
We purcHAse NZ NeW cArs ANd commerciAls For All our FrANcHises
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News in brief Marque on mission on improve driving standards Audi NZ has launched a driving academy to teach 18 to 25-year-olds techniques to prevent and minimise dangerous situations. Young racing drivers Mitch Evans and Andrew Waite joined professional instructors at the June 9 launch at Hampton Downs where young motorists were able to master challenges, such as braking, skid-pan driving, changing lanes and distracted driving. “Loss of control is a leading cause of fatal crashes among 15 to 24-yearolds,” says Dean Sheed, the marque’s general manager. “Men in this group are nine times more likely to crash than men 25-plus, while young women are seven times more likely those 25-plus.” The exercises were carried out in A1 and A3 sportbacks, and A4 sedans. Visit www.audi.co.nz/drivingacademy for more details.
New chief says company in good trading position David Smitherman has been unveiled as chief operating officer of Fiat Chrysler NZ – Neville Crichton and Clyde Campbell’s joint venture. Campbell has been in charge of daily matters from the Auckland headquarters since May last year. He and Crichton will stay involved in operations, but the appointment means they can concentrate on developing opportunities. Smitherman, pictured, was most recently commercial manager for the Australasian-based Ateco Group.
Campaign to replace scheme with tax stepped up
VEHICLES WANTED
ALL PORSCHE, LAND ROVERS, RANGE ROVERS, JAGUARS AND VOLVO MODELS
Simon O’Reilly I 021 31 9992 I simon.oreilly@armstrongs.co.nz I www.armstrongprestige.com
The Greens want to replace the emissions trading scheme (ETS) with a pollution tax. The ETS, which includes fees on cars with air-conditioning units when imported, was designed to boost investment in clean technology, emission reductions and tree planting. But party co-leader Russel Norman claims it has achieved none of its aims while “taxpayers are subsidising polluters to produce emissions at about $3.80 per tonne”. He says the ETS should be canned for a carbon tax, with money raised from it going to households and businesses via a $2,000 income tax-free band and a one per cent company tax cut. The charge would initially be $25 per tonne on CO₂ equivalent emissions for all sectors except agriculture, with dairy paying $12.50 and forestry being credited at $12.50.
Kiwis record successes on global racing stage
Buying: Vans, Utes, Light Trucks. Nationwide. Contact Gareth 021660180
gareth@southcitymotors.co.nz
www.317.co.nz
To advertise here, contact:
advertising@autofile.co.nz or ph 021 455 775
Hayden Paddon came 12th in the Rally Italia Sardegna in his debut for Hyundai Motorsport in the World Rally Championship. The Kiwi managed a top-five stage time on the final day. Paddon, pictured, restarted on day three having been forced out with engine problems at the end of day two. The misfiring engine cut short his second run after a water splash. He was stood down so the vehicle wasn’t further damaged. Meanwhile, Dunedin-based car dealer Emma Gilmour secured a Red Bull Global Rallycross Championship semi-finals result at the X Games in Texas. She became the first woman to compete in the sport with her Rhys Millen Racing Hyundai Veloster Turbo car running faultlessly. Visit www.autofile.co.nz for more on these stories.
new cars Jaguar’s new XFR-S
Second member in the 300 club T
he XFR-S – the second model in Jaguar’s ultra-high performance R-S range – joins its XKR-S sibling in the 300kph club. Performance is provided by a fivelitre supercharged V8 petrol engine, which boasts 405kW and 680Nm – up 30kW and 55Nm over the XFR. The increases have been achieved through revisions to the engine management system, and optimising the flow of air in and out of the engine.
Fitted with an eight-speed transmission incorporating the marque’s Quickshift technology developed for the F-TYPE, the increase in output allows the XFR-S to hit 100kph in 4.6 seconds. Airflow has been managed to allow the engine to operate at peak efficiency, and to let the car cleave the air cleanly and safely. The resulting body changes have created an assertive appearance, beginning with the
deeper front bumper with its larger lower air intakes, vertical vanes and carbon-fibre front splitter. Deeper sills and unique “aeroblades” ensure a clean passage of air along the side of the car and onto the deeper rear bumper sides. A carbon-fibre back diffuser between the quad tailpipes extends underneath the car’s rear to reduce lift. It’s aided by a boot-lid-mounted spoiler with two designs available, and overall lift has been reduced by 68 per cent. The 20-inch lightweight forged alloys are wider, and have specially developed Pirelli tyres to give the XFR-S – which is priced from
$185,000 – a more muscular stance and to bolster grip and stability. Extensive revisions increase the car’s lateral suspension stiffness by 30 per cent for greater steering precision and responsiveness. Recalibrated active electronic differential and dynamic stability control settings allow drivers to make the most of the vehicle’s potential. Interior materials include carbon leather on the seat bolsters and arm rests, and a dark aluminium fascia. And for a bit more cash, contrasting colour stitching and micro-piping can be matched to the exterior paint scheme.
Packed with extras VEHICLES WANTED Mercedes Benz A special edition of Toyota’s 2014 Hilux comes with unique graphics, 17-inch alloys and an array of accessories. The two-wheel-drive Edge has a sportier look and high-performing 225/55R17 Bridgestone Dueller tyres. Other exterior features include LED daytime running lights, and stainless steel nudge bar and side pipes. The double-cab body has colour-matched door handles, door mirrors and rear bumper with an integrated step, along with tinted windows on the front doors and privacy windows on rear doors and back screen. There are branded carpet
floor mats, front headrests and a leather-wrapped gear knob, while the special edition also comes with more than $5,000 of extras. The 2014 Hilux range has standard satellite navigation with SUNA traffic channel and reversing camera, a five-star ANCAP rating and a new diesel five-speed automatic transmission for the four-wheel-drive. The mainstream line-up has been expanded with a four-litre V6 petrol engine and five-speed automatic transmission variants to bring together 12 different variations for the ute. The Hilux Edge is available in four exterior colours – black, white, red and grey – and is priced from $39,990.
toyota
Volkswagen BMw audi lexus Kia
nissan 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 The Hilux Edge special edition
www.autofile.co.nz | 15
tech report the ImvIa technical Report is proudly brought to you by leading certification service provider, vINZ
from the trade and for the trade
Training system for inspectors W
ith the NZTA recently releasing its statement on certificate of fitness (COF) changes, there has been plenty of discussion about what’s happening with this inspection regime as a result of the Vehicle Licencing Reform (VLR). The VLR is opening up the COF market to organisations over and above the present transport service delivery agents (TSDAs) providing these inspection services. Many of the new inspection organisations are heavy motorvehicle servicing organisations, which will be offering COFs in their existing workshops. The NZTA has been working with the industry through focus groups and forums to ensure that practical, achievable requirements are introduced. New inspection organisations will have to meet minimum prescribed standards for premises, while their notices of appointment from the NZTA may restrict the type or size of vehicles they are able to provide COF services for. They will employ suitably qualified vehicle inspectors and there may also be technicians who carry out repairs on customers’ vehicles. These inspectors will have to undergo training and assessment through a new system being introduced by the Motor Industry Training Organisation (MITO) with unit standards being recognised by New Zealand Qualifications Authority.
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The certificate of fitness market is being opened up to more providers
Approved applicants able to
start delivering COF services from December 1. The NZTA has stated all applicants that have filed in November and meet all the requirements will be able to start in December, but late applicants will not be processed before Christmas. It is envisaged that major truck distributors and their franchised workshops around the country will be looking to provide COF services – along with a number of independent repair workshops.
Transport services An individual or company operating a goods, passenger, vehicle recovery or rental service must hold an appropriate transport service licence (TSL). The NZTA is working on ways to “streamline and refocus” the system towards operators that present greater risks to road users. This includes reporting on the implications of removing farmers and trades people who only use one goods vehicle of less than 15,000kg gross vehicle mass from having a TSL. Ways to improve the process for entry are being investigated, as well as opportunities to better manage and exit unsafe and poor performing operators from the regime. The NZTA is also investigating if fees and charges for regulatory activities should change to reflect activities carried out for different sectors.
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interest – whether Initially, these unit actual or perceived – standards are being must be declared. introduced for COF B The present review inspectors of heavy system for inspectors and vehicles with gross organisations is going to vehicle masses of more change, with the NZTA than 3,500kg. carrying out a riskBut the standards management approach. will progressively be MALCOLM YORSTON IMVIA membership and This will use rolled out for COF A technical services manager information and – light vehicles – and intelligence to identify high, warrant of fitness inspectors, with medium, low and very low risk sites the qualifications providing career before selecting those to review paths for them. earlier as well as establishing the The notice of appointments will frequency of review. require inspection organisations to All of them will be reviewed at have a code of conduct to adhere least once every three years with to, and these notices require them those identified as high risk being to ensure all vehicle inspectors targeted for more frequent review. have such codes. Initially, it’s understood that They must also have a quality new inspection organisations will management system (QMS) in place. be placed in a higher risk category The NZTA has a generic QMS model available for inspection organisations than existing COF providers. The timeframe for implementation and it is currently evaluating ISO in 2014 is as follows: 17020 to see if this could deliver to MITO training available in July. agency’s requirements. Pre-registrations accepted on The QMS must clearly show how September 1. conflicts of interest will be dealt Applications accepted from with, while notices of appointment November 1. will require that any conflicts of
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Walter Rands-Trevor
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partial streamlining with a record of 204mph or 329.8kph, and the second open with no streamlining or bodywork and a 185mph or 298.2kph record. Racing at Bonneville has unique challenges. These include the logistics of getting there, lack of traction on salt, and high altitude and temperatures that rob engines of vital horsepower. But there’s a major benefit too. Bonneville is perfectly flat with plenty of space to get up to speed. It’s so vast that Walter says you can see Earth’s natural curvature. Walter will be racing with a 1,000cc engine on control fuel and no turbo. He and his team have worked extensively to get the most out of the bike while keeping within the rules. Record-setters have to go faster than the previous top speed with this pass signed off as a qualifying run. The vehicle is then impounded overnight and the next morning a second run is completed. If the average of the two runs is higher than the old record, the bike is stripped down and inspected to ensure all class rules have been met. Subject to that, a new record is secured. Walter’s team members are Pippa Harris, Rob MacKichan, Kit Greer and Kevin Davidson, with Walter and Rob doing the riding. The team at Protecta is proud of Walter, wishes him all the best and will be watching with interest in the hope he can bring a land-speed record home. Updates will be posted on www. facebook.com/groups/ saltfever/. Walter would like to thank Protecta Insurance, Bell Helmets and his team-mates for their support.
May 2014
33% 11%
Insurance
W
alter Rands-Trevor, Protecta’s business development manager for motorcycle insurance, is heading to the US in August to once again compete at Bonneville Speed Week under the team name of WRT Racing. He will try to set a land-speed record on his motorbike, which is being specially built and shipped to Utah for the event. The annual festival of speed is run by the Southern California Timing Association and Bonneville Nationals with courses marked out on the dried-up salt bed that is Lake Bonneville. This large and flat area has been used for motorsport since 1912, but gained popularity through the 1920s and ‘30s. While the roots of organised land-speed racing at Bonneville are with hot rods, different cars and motorcycles are now raced there in bids to set new records in their chosen classes. Two years ago, Walter raced a 2008 Kawasaki ZX10R and came within 1mph of setting an openclass record. This time he’s riding a 2011 ZX10R in two classes. They are
PROTECTA Nationwide F & I results
Best result $ 1,345 Worst result $ 420
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35%
40%
45%
50%
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www.autofile.co.nz | 17
disputes
Tribunal says no problems made van unsafe to drive or unfit for purpose Background Steven Decock bought a 1988 Ford Econovan from NZ Cars Ltd for $5,350 on October 30, 2013. He later rejected it because of an exhaust manifold leak, and because the brake or clutch master cylinder was leaking and tyres were mismatched. The dealer said the faults weren’t serious and the buyer failed to give it a chance to fix them.
The case Decock bought the vehicle with only 105,900km on its odometer and the dealer inserted a term in the vehicle offer and sale agreement (VOSA). It stated: “Sold with seven days’ return-to-base mechanical warranty on motor and gearbox system.” The VOSA added: “The Consumer Guarantees Act [CGA] does not apply to this agreement. The purchaser has advised the vehicle is being used for business.” Decock didn’t appreciate the VOSA’s significance and didn’t say he was buying the van for business purposes. Mr P Watson, manager for the trader, acknowledged the clause shouldn’t have been inserted and now understood it was a Fair Trading Act offence to contract out of the CGA in this way. Before the van was sold, it had a warrant of fitness (WOF) carried out but failed for rust. The trader had Star Automotive in Otahuhu repair this, replace the exhaust gasket, spark plugs, coolant, brake bulbs, ignition points and condenser. A WOF was issued on October 24, but Decock noticed the gearstick wouldn’t select third and
fifth gears smoothly. This seemed minor to him for the vehicle’s age. When it wouldn’t start on November 8, an auto electrician diagnosed a faulty fuel filter and it was replaced. On November 12, the vehicle had a flat tyre and Decock replaced its worn valve. When the buyer later topped up the brake-fluid reservoir, he thought it was leaking. The engine got louder and fumes filled the cabin. Decock took the van to Te Puke Service Centre on November 19, which reported a leak in the exhaust manifold and a leaking brake/clutch master cylinder. If the head was damaged, it was estimated to cost $1,500 upwards but the engine needed to be taken apart to determine this. Decock returned the van and claimed a refund because “it wasn’t fit for purpose”. Watson refused and asked Decock to go to its mechanic Star Automotive. He didn’t because he “didn’t trust the mechanic to do a good job”. The next day, Decock went to the Citizens Advice Bureau. He was encouraged to get reports to confirm the faults. He took it to Just Honda, which quoted $250 to fix the oil leak and $1,250 to repair the manifold. Decock considered the faults serious and again rejected the van by email on November 20. The trader replied saying it wasn’t 10000 to accept this and asked prepared him 0 take it to Star Automotive. 950to A VTNZ inspection on 9000 November 25 confirmed the exhaust was noisy, the clutch 0 850 performance was “low” and brake8000 fluid leaks. 7500
The buyer wanted The case:tribu nal to uphold the disputes his rejection of a Ford Econovan and order a refund because he claimed it was unfit for purpose because of three problems.
Two days later, Decock took the van for a WOF. It failed because the exhaust was leaking and rear tyres were mismatched. Watson said Decock refused to return it to his repairer. He offered to have it fixed by a repairer of his choice and have it taken for a WOF, but he declined. Watson produced an inspection report dated on December 20 when the van’s odometer was on 108,278km. Faults included a number-plate light not working, loose manifold bolts, possible cracked cambelt and hard heater hoses. The sway-bar link and rearshackle bushes were “worn but okay”, and there was shaking under braking but this wasn’t dangerous.
The finding One or both clutch cylinders were probably leaking when the van was sold, and this might have been why it was hard to select third and fifth gears. It appeared the rear tyres were mismatched when supplied, while the leaking manifold happened after the buyer had driven about 2,500km. This might have been caused by Star Automotive not tightening bolts properly, or hanger supports allowing the manifold to vibrate. The tribunal thought a reasonable consumer wouldn’t consider it free of minor faults, so it didn’t comply with the CGA’s guarantee of acceptable quality. Watson gave undisputed evidence that on November 19 he asked Decock – before he rejected the van the next day – to take it to the trader’s mechanic. Decock decided not to because he believed the faults
7000
2013
6500
2012
tribunal The decisioldn:stillThe have been thought it wou purchased by a reasonable consumer acquainted with the nature and extent of the faults who wanted a 25-year-old and relatively low-mileage vehicle.
r Vehicle Disputes At: The Motoland . Tribunal, Auck
entitled him to reject the vehicle. A buyer must prove he required the trader to remedy the fault and it failed to do so, or that the failure was substantial. The tribunal considered if Decock hadn’t been aware of the exhaust leak, it could have made the van unsafe. But he knew it shouldn’t have been driven because of loud engine noise and he was told it had a leaking manifold. Decock continued to drive the van around, so he didn’t think it was unsafe – and neither did the tribunal. It didn’t consider the mismatched tyres were a failure of substantial character and didn’t consider the clutch fluid leak were serious. The slave and master clutch cylinders needed to be inspected and replaced if faulty. The cost would be about $340 to replace both cylinders. The tribunal ruled none of the three faults made the van unsafe or substantially unfit for purpose.
Orders The rejection was dismissed and trader had to take the vehicle to its repairer at its own cost. The slave and master clutch cylinders had to be inspected and replaced if faulty, the manifold leak fixed, rear tyres matched and van taken to obtain a WOF by VTNZ.
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disputes
Business purchase ruled out after section on agreement struck through
The finding The tribunal, in deciding if the car was of acceptable quality, took into account it was recently imported from Japan and a nine-year-old Toyota Mark X that had travelled 64,689km. It had been driven 8,237km since purchase. The tribunal found one of the four oxygen sensors – the rightrear sensor or catalytic converter monitor – was probably faulty when sold. It also found the trader replaced it with a second-hand one. However, it seemed most likely that another sensor – described in North Western Toyota’s invoice as “bank two, sensor one” – then became faulty. The tribunal didn’t think a reasonable consumer would regard a car with a history of sensors issues and a faulty sensor four months after sale as acceptable. Although one of the reasons it failed a WOF was “the engine check lamp for O2 sensor on [emissions]”, the tribunal agreed with the dealer it shouldn’t have failed as this wasn’t a valid reason. The tribunal concluded the car wasn’t as durable as a reasonable
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Finance
When buying the car, the purchaser signed a vehicle offer and sale agreement (VOSA). It included: “I agree if I am acquiring the vehicle for business purposes in terms of sections two and 43 of the CGA, the act will not apply.” The VOSA also had a box on the first page. This stated: “The purchaser acknowledges and certifies the goods are being acquired for business, and the parties agree the CGA will not apply.” The box hadn’t been initialled by the buyer and was struck through with a line. The tribunal was satisfied the purchaser probably got the car to visit business premises.
promised to get back to him. The trader didn’t and refused to replace the sensor unless the buyer paid for the warranty. A North Western Toyota quote of December 2 stated the engine code indicated a sensor heater-circuit fault and a new one would cost $910. “We would recommend the vehicle is re-booked when we have more time to do a resistance test on the sensor before ordering exJapan,” it stated.
n: The tribunal The decisioactio n fell under
ruled the trans the remit of Consumer Guarantees Act (CGA), and the purchaser was entitled to have the vehicle fixed and obtain reasonable costs. r Vehicle Disputes At: The Motoland . Tribunal, Auck
consumer would regard as acceptable. When a failure to comply with a CGA guarantee can be remedied, the consumer must require the supplier to do so. If the supplier refuses or fails, the buyer can have the failure fixed elsewhere and obtain reasonable costs incurred in having it remedied, or reject the goods. The buyer claimed to take the car back on eight times to have the sensor repaired or replaced. After failing to get one, the trader removed one from another vehicle. When the problem with another sensor occurred in September, he agreed to make a warranty claim, which was rejected. He again asked the dealer to fix the problem, but it refused unless the buyer reimbursed $200 for the Janssen policy. The tribunal was satisfied the trader was required to remedy the fault, but failed to and then refused, so the purchaser was entitled to have it repaired and receive costs.
Order The dealer had to pay 17% the buyer $988 – $910 for the sensor and $78 for an assessment.
Payment protection
The case
Director Mr W He said that it was a massage business operating in supermarkets, but he didn’t agree to exclude the CGA because the box on the VOSA wasn’t initialled. In the absence of any other evidence, the tribunal ruled the CGA applied. New Dragon bought the car on May 18 last year when its odometer was on 64,687km. The VOSA recorded a special condition was the trader would provide a six-month back-to-base mechanical warranty. It was also recorded the first warrant of fitness (WOF) and service were free, and after six months the dealer would provide a 12-month warranty for $200. Mr He, for the buyer, said there were issues with the oxygen sensor from the outset, and it took the trader several weeks to get it repaired. The purchaser said the fault wasn’t rectified until the dealer fitted a sensor from another vehicle. The “check engine” warning light on its instrument panel lit up and He returned the car, but Manukau Toyota found no fault. The light came on again in September and He took it back on the 13th. The buyer claimed – but Mr M Rauf, director for the trader, denied – that Rauf told him a new sensor was expensive, he would like to give him a Janssen warranty and asked him to claim on it after a month or so. The buyer did so, but the claim was declined because sensors weren’t covered by the policy. Rauf asked He for time to discuss the matter with Janssen and
12% 14% 13%
GAP
New Dragon International bought a 2004 Toyota Mark X from Import Vehicle Compliance & Repairs for $12,500 in May 2013. It wanted the trader to pay $910 for a new oxygen sensor after failing to fix it. The dealer said the car was bought by a company so the CGA didn’t apply. It said it fixed a problem with a light and replaced an oxygen sensor a few weeks after supply. When the buyer continued to complain, the trader had the vehicle checked by Manukau Toyota on August 13 and no fault codes were found. When the purchaser returned the car on September 1, the trader scanned it and provided a 12-month Janssen warranty. After the buyer took it back on November 18, the dealer expected the purchaser to pay for the warranty if it wanted the trader to fix the car, but the buyer didn’t agree to do so.
the dealer to sensor after failing to remedy a fault. The trader claimed the car was bought by a company so consumer laws didn’t apply.
surance
Background
The buyer wanted The case:pay for a new oxygen
22% 9%
41
The TRUSTED online wholesale trading site.
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co
he
d
Biggest Increases/Decreases by town year-on-year
un
(May 2014 vs May 2013)
try
Aroun
Whangarei tAuckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargil l Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua
Biggest Increases
New Used Oamaru 71.4% Greymouth 76.2% Westport 66.7% Masterton 75.0% Invercargill 43.9% Timaru 59.5%
New Used Greymouth 40.0% Westport 16.7% Thames 28.1% Thames 9.1% Palmerston North 23.5%
M a y 2 0 14
Biggest Decreases
Passenger Vehicle Registrations
Used Vehicle Registrations
New versus Used
North Island versus South Island Used
11000
8871
8000
11,233
7000
10000
6000
9000
North Island
5000
8000
4000
7000
3000
New
6802
South Island 2352
2000
6000
May ‘14
Apr ‘14
Mar ‘14
Feb ‘14
JAN ‘14
DEC ‘13
Nov ‘13
Oct ‘13
Sep ‘13
AUG ‘13
JUL ‘13
May ‘13
May ‘14
Apr ‘14
Mar ‘14
Feb ‘14
JAN ‘14
DEC ‘13
Nov ‘13
Oct ‘13
Sep ‘13
AUG ‘13
JUL ‘13
Jun ‘13
May ‘13
Jun ‘13
1000
5000
Used Import Passenger Vehicle Registrations by City
Auckland, Wellington, Christchurch
Hamilton, Tauranga, Dunedin, Palmerston North 5539
5000
4000
600 Auckland
May ‘14
Apr ‘14
AUG ‘13
JUL ‘13
Jun ‘13
May ‘14
Apr ‘14
Mar ‘14
Feb ‘14
JAN ‘14
Mar ‘14
Palmerston North
0 DEC ‘13
Nov ‘13
Oct ‘13
AUG ‘13
JUL ‘13
Jun ‘13
May ‘13
Sep ‘13
Wellington
0
200
Feb ‘14
867
500
313 289
Dunedin
JAN ‘14
1000
Tauranga
300
DEC ‘13
1503
Nov ‘13
Christchurch
Oct ‘13
2000
461
400
Sep ‘13
2500
Vehicles sold
3000
1500
Hamilton
500
May ‘13
3500
Vehicles sold
737
700
4500
UK, Japanese and local vehicles. Finance available.
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TWO SAILINGS PER MONTH JAPAN TO NZ LATEST SCHEDULE Sepang Express V14
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17 Jun
3 Jul
17 Jul
3 Aug
Yokohama
18 Jun
4 Jul
18 Jul
4 Aug
Auckland
6 Jul
20 Jul
5 Aug
21 Aug
Wellington
14 Jul
27 Jul
12 Aug
29 Aug
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Used import numbers ramp up
M
ay recorded another huge increase in used passenger vehicles with 16,514 arrivals, which was up by 3,405 on April’s total of 13,109. This continued the trend of the numbers tracking upwards since the start of 2014, with 8,807 used imports crossing the border in January. This increased to 9,093 in February and 11,258 in March, with the year-to-date total now standing at 58,781 compared to 50,946 in the first half of 2013 – a difference of 15.4 per cent. Industry sources are predicting a slight drop in June and a further fall during July as dealers look to reduce stock, while Ports of Auckland is anticipating 11 roll-on, roll-off vessels berthing each month. Tony Hammond, the owner of
Tony Hammond Motors in Tauranga, says there are plenty of vehicles for his business to choose from between $10,000 and $20,000 retail. “There are good values in used imports today compared to what people could spend on a new car,” he told Autofile. “The yen has recovered a bit of ground, but it’s not a huge worry. It would be if it dropped from 87 to say 80. However, it has been reasonably stable. “The numbers from Japan declined quite significantly during the recession, while the volumes that are coming in now reflect the market getting back to as good as it was prior to the downturn.” Hammond points out Japanese roads are different to those in New Zealand, which helps when importing stock.
“They don’t have stone chipping and they are well-maintained,” he explains. “As far as the condition of cars goes, we choose better condition stock so we don’t have to spend more on reconditioning.” The Nissan Tiida continues to be popular with buyers – “for a decent-sized car, they are as good as you can get” – and people have been moving away from bigger six-cylinder vehicles. Jeremy Gane, sales manager of City Motor Group in Auckland, says the company has its own buyer who lives in Tokyo for half of the month, which means consistent supply of good stock is secured for the Kiwi market. Smaller cars are big sellers, while commercial vehicles and European marques are also proving to be popular.
“We sell everything between $7,000 and $8,000, and up to $150,000,” says Gane. “We have about 600 cars in stock and are completing about 130 retail deals per month.” So far this year, there have been 56,028 used cars imported from Japan. Last month, 15,916 came from there compared to 12,548 in April. May’s total from across the Tasman amounted to 286, which was Australia’s best month of 2014 and brought its year-to-date total to 1,263. That was an increase on the first five months of last year by 532 units, or 72.8 per cent. The number of used commercials imported in May was 516. This was the biggest month of 2014 for a yearto-date a total of 2,048.
Used import passenger vehicle arrivals 16000 15000 14000 13000 12000 11000 10000 9000 8000
2014
7000 6000 5000
2010
4000
2013 2011
3000
2012
JAN
FEB
MAR
APR
MAY
JUN
JUL
Aug
Sept
Oct
Nov
Dec
Used Import Passenger Vehicles By Country Of Export Country of Export
2014
2013
2012
JAN ’14
Feb ’14
Mar ’14
APr ’14
May ’14
May Share %
2014 TOTAL
Q1
Q2
Q3
Q4
2013 TOTAL
MRkt Share
2012 total
% Total
Australia
208
264
239
266
286
1.7%
1263
385
464
503
638
1990
1.9%
1199
1.6%
Great Britain
208
133
142
151
169
1.0%
803
664
716
737
791
2908
2.7%
2730
3.7%
8268
8599
10697
12548
15916
96.4%
56028
20148
27869
23072
29695
100784
93.9%
67442
92.6%
Singapore
15
19
19
29
17
0.1%
99
31
26
41
48
146
0.1%
154
0.2%
Usa
81
60
149
104
105
0.6%
499
266
248
307
384
1205
1.1%
976
1.3%
Other countries
27
18
12
11
21
0.1%
89
65
64
63
59
251
0.2%
336
0.5%
8807
9093
11258
13109
16514
100.0%
58781
21559
29387
24723
31615
107284
100.0%
72837
100.0%
Japan
Total
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Second-hand sales stay steady T
here were 17,562 dealer-topublic registrations of used cars across the country during May, which was a 0.5 drop on 17,652 sales in the same month of 2013. But there was a slight increase of 1.6 per cent in trade-ins – from 14,120 to 14,348 – and there was a 2.8 per cent rise in private transactions from 39,865 to 40,983. Peter Day, of Peter Day Motors in Palmerston North, says: “I’ve been in this industry for a while, and there are always highs and lows. “A lot of guys who can’t ride out the lows come and go, and a couple pulled the pin during the global financial crisis, but they are coming back and usually as small one-man bands working from home. “Vans are the only commercials
we sell and they just tick over, but there’s always trouble finding used utes. “We have just got to pay too much money to get something that we want.” Martin Dunn, of Universal Imports in Warkworth, says: “We only opened five weeks ago and business has been a lot busier than I expected.” His customers have been visiting the dealership from around the Auckland region. “About 50 per cent of our customers have come from Trade Me and our website, as well as through a bit of local advertising,” he told Autofile. “I’ve sold a few European cars and think there’s a good supply of them on the market at not too ridiculous money.
“The light commercial stuff has been going well as well as SUVs. It’s really difficult to get a hold of them because the stock hasn’t been readily available.” Ross Thurston, dealer principal of Manawatu Nissan in Palmerston North, says: “The new vehicle market has been a bit detrimental to used sales because there are so many good new car deals. “We have had to re-price our late and low-kilometre used models and lose some margins. That has knocked us around a little bit. “We do the occasional import, but tend to focus on specialised stock instead of purchasing the same car that you can buy on 20 other yards.” Last month, Westport returned
the biggest percentage jump – 17.6 – in dealer sales from 17 to 20 and was followed by Gisborne with 16 per cent from 156 to 181. On the flip side, Oamaru recorded a 20.3 per cent decrease from 79 to 63 sales. But when it came to trade-ins, the town landed a 15.8 per cent increase from 19 to 22. Nelson’s dealer-to-public sales dipped by 11.8 per cent from 363 to 320, while Greymouth had the biggest decrease in trade-ins – by 26.3 per cent from 57 to 42. It was followed by Thames on 22.6 per cent from 115 to 89. The country’s biggest rise in private sales came in Greymouth, which was up by 15.7 per cent from 198 to 229. Westport’s 24.5 per cent decrease from 102 to 77 was the biggest.
Secondhand car sales - May 2014 May '14
Dealer-To-Public May '13 +/- %
MARKET SHARE
May '14
Public-To-Public May '13
+/- %
May '14
Public-To-Dealer May '13
+/- %
Whangarei
543
604
-10.1
3.09
1875
1713
9.5
279
336
Auckland
5840
5784
1.0
33.25
13785
13491
2.2
4776
4492
-17.0 6.3
Hamilton
1441
1503
-4.1
8.21
3275
3271
0.1
1271
1210
5.0 -22.6
Thames
223
236
-5.5
1.27
525
488
7.6
89
115
Tauranga
927
953
-2.7
5.28
2060
1994
3.3
675
669
0.9
Rotorua
242
265
-8.7
1.38
721
743
-3.0
146
143
2.1 -0.9
Gisborne
181
156
16.0
1.03
363
388
-6.4
108
109
Napier
593
566
4.8
3.38
1409
1324
6.4
418
416
0.5
New Plymouth
440
498
-11.6
2.51
1029
1017
1.2
269
288
-6.6
Wanganui
175
174
0.6
1.00
436
439
-0.7
147
137
7.3
Palmerston North
873
825
5.8
4.97
1601
1518
5.5
1410
1454
-3.0 -11.5
Masterton
164
179
-8.4
0.93
370
337
9.8
85
96
Wellington
1465
1541
-4.9
8.34
2834
2877
-1.5
1221
1272
-4.0
Nelson
320
363
-11.8
1.82
953
995
-4.2
251
269
-6.7
Blenheim
196
218
-10.1
1.12
399
383
4.2
151
159
-5.0
Greymouth
98
103
-4.9
0.56
229
198
15.7
42
57
-26.3
Westport
20
17
17.6
0.11
77
102
-24.5
-
2
-
2386
2245
6.3
13.59
5460
5192
5.2
1954
1869
4.5
Timaru
262
270
-3.0
1.49
576
512
12.5
176
174
1.1
Oamaru
63
79
-20.3
0.36
203
233
-12.9
22
19
15.8
Christchurch
Dunedin
690
636
8.5
3.93
1812
1645
10.2
492
480
2.5
Invercargill
420
437
-3.9
2.39
991
1005
-1.4
366
354
3.4
17562
17652
-0.5
100.00
40983
39865
2.8
14348
14120
1.6
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
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Passenger Car Sales by Private/Business split - MIA statistics Make
Alfa Romeo
Private
% Private
11
61.1
Aston Martin
Business % Business
7
38.9
Total
18
1
100.0
0
0.0
1
83
48.8
87
51.2
170
1
100.0
0
0.0
1
BMW
65
30.7
147
69.3
212
Chery
25
78.1
7
21.9
32
Chrysler
4
66.7
2
33.3
6
Citroen
16
51.6
15
48.4
31
0
0.0
1
100.0
1
Dodge
15
50.0
15
50.0
30
Fiat
12
50.0
12
50.0
24
Ford
176
31.6
381
68.4
557
9
60.0
6
40.0
15
Holden
236
30.8
529
69.2
765
Honda
122
62.2
74
37.8
196
Hyundai
164
31.0
365
69.0
529
2
28.6
5
71.4
7
3
60.0
2
40.0
5
42
39.3
65
60.7
107
Audi Bentley
Daihatsu
Great Wall
Isuzu Trucks Jaguar Jeep Kia
83
36.2
146
63.8
229
Land Rover
35
51.5
33
48.5
68
Lexus
19
45.2
23
54.8
42
4
66.7
2
33.3
6
186
35.5
338
64.5
524
Maserati Mazda
78
41.5
110
58.5
188
MG
Mercedes-Benz
2
100.0
0
0.0
2
Mini
13
38.2
21
61.8
34
Mitsubishi
207
58.5
147
41.5
354
Nissan
260
62.7
155
37.3
415
Peugeot
49
75.4
16
24.6
65
Porsche
14
70.0
6
30.0
20
Renault
1
4.5
21
95.5
22
Skoda
24
35.8
43
64.2
67
SsangYong
20
29.9
47
70.1
67
Subaru
44
35.2
81
64.8
125
Suzuki
211
51.7
197
48.3
408
Toyota
250
25.1
746
74.9
996
Volkswagen
170
47.2
190
52.8
360
Volvo
12
40.0
18
60.0
30
Other
0
0.0
1
100.0
1
Total
2669
39.7
4061
60.3
6730
*Business sales include rental and government sales, and the totals include passenger cars and SUVs. SOURCE: MIA
Diamond marque sales sparkling T
he top-five selling marques last month were the same as in April, except for Ford moving up the ladder. Toyota stayed top and fell just four of 1,000 passenger car and SUV registrations in May, up from 765 in the previous month. Of its sales last month, 746 – or 74.9 per cent – were business transactions. Holden held onto second with 765 sales, of which 529 – or 69.2 per cent – were to businesses. Ford sold 164 more cars compared to April to claim third position. Business sales accounted for 68.4 per cent, or 381, of its registrations. Hyundai dropped one spot to fourth. Its 529 sales included 365 to business, or 69 per cent of its total. Mazda secured the highest share of private sales in the top five last month – 35.5 per cent represented 186 registrations out of 524. Mitsubishi, meanwhile, is one of four marques selling in excess of 100 units last month to have more than half of its registrations taken by private buyers. It says well-priced product and campaigns have seen it more than double the year-on-year growth of any top 10 distributor. “With vehicle sales at their highest in decades, Mitsubishi Motors and its nationwide dealer network have capitalised through innovative product packages,” says Daniel Cook, head of sales and marketing strategy. “These include the Lancer GSR, Kiwi heroes such as the Outlander and Mirage, and our plug-in hybrid.” Last month, the diamond marque sold 354 cars. Of those,
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207 – or 58.5 per cent – were to private buyers. “We are delighted with the response we’ve had from the market,” says Cook. “We have a great product range and we’re able to price it competitively.” He says the marque’s “unmatched” Diamond Advantage warranty means customers get “exceptional value” and added security with their purchases, which appeals to buyers in both the private or business sectors. “Our unprecedented growth is the result.” Sales of new Mitsubishi cars in the five months to May increased by 46 per cent compared to the same period in 2013. Combined with an 11 per cent jump in its light commercial vehicles, total growth came to 33 per cent. Over this period, total sales in the new vehicle market grew by 13 per cent – with cars up by 11 per cent and light commercials increasing by 19 per cent. Cook believes one of the secrets to the company’s success has been chipping away at monthly incremental growth, which recently resulted in its 53rd month of consecutive sales increases. “Everyone across our organisation has had to work hard to achieve our targets. We’re enjoying the satisfaction of that success.” Three other marques selling in excess of 100 units also saw more than 50 per cent go to private buyers. They were Nissan with 62.7 per cent of its 415-unit total, Honda with 62.2 per cent of 196 and Suzuki with 51.7 per cent of 408.
Healthy figures for small cars P
assenger cars continue to outsell other sectors of the new vehicle industry, although their percentage year-onyear increase is the smallest among the three main reporting categories. There were 3,727 cars – excluding SUVs – sold last month, which was a 1.5 per cent increase on May 2013. That brought the year-to-date total to 20,781 – up by 4.4 per cent – with private and business sales rising, and government and rental registrations falling. The small car category is performing well. Its total for 2014 is now 9,425 units, which is up by 20.8 per cent compared to 7,804 over the same period last year. That compares to 8.8 and 4.8 per cent sales decreases in light
and medium cars, while large and sports cars have trailed off by 2.1 and 15.5 per cent. SUVs continue to hold the largest proportional rise at 21.8 per cent for the year so far, which represents an increase from 12,159 registrations to 14,815. This total includes jumps of 30.4 per cent in private and 29.3 per cent in government sales, while small SUV transactions have shot up by 53.8 per cent from 2,538 to 3,904. The light commercials market is also performing well with an overall 19.5 per cent increase, while sales in the heavy vehicle sector are up by 29.7 per cent. Robin Kidd, dealer principal of Eurocar Suzuki in Palmerston North, says: “Our sales are at the
same level as last year. With the new Suzuki range, we are quite close to competing with cities, such as Hamilton and Tauranga, which are much larger. “We don’t get many people aged between 18 and 20 buying our vehicles though. It’s generally families and middle-aged people, and one of the disadvantages is most are paying in cash.” David Wilmot, chief executive officer of Wilmot Toyota in Warkworth, says: “The Hilux is making some big noise and we had a pretty good May. “Typically June is the biggest month with Fieldays specials on offer.” Ross Thurston, dealer principal of Manawatu Nissan, says: “We have seen a dramatic increase with the
Juke, Qashqai, Pulsar and other models in the passenger car segment. “We have found we’re not always on the shopping list for the commercial market, but with the new Navara out next year we think our share will improve. “The amount of interest in the one per cent finance deal has been overwhelming and has definitely helped to boost sales. “Kia has been standing on its own two feet. There hasn’t been a lot of growth and not a lot of fall away. It’s a great product, with good specifications.” Last month, there were 10,064 sales of new vehicles across New Zealand. This represented a 13 per cent increase on 8,908 registrations in May 2013.
NEW VEHICLE MARKET SEGMENTATION - May 2014
NEW VEHICLE SALES BY BUYER TYPE - May 2014 May '14
May '13
Mth %
2014 YTD
2013 YTD
% YTD
Passenger
3,727
3,671
1.5
20,781
19,907
4.4
Passenger
3,727
3,671
1.5
20,781
19,907
4.4
Private
1,495
1,389
7.6
8,269
7,754
6.6
SUV
3,003
2,651
13.3
14,815
12,159
21.8
Business
1,875
1,874
0.1
10,069
9,463
6.4
Light Commercial
2,876
2,197
30.9
11,996
10,042
19.5
185
260
-28.8
1,009
1,113
-9.3
Heavy Commercial
420
359
17.0
1,862
1,436
29.7
-9.1
Other
38
30
26.7
185
201
-8.0
10,064
8,908
13.0
49,639
43,745
13.5
Light
1,175
1,165
0.9
5,751
6,308
-8.8
Small
1,570
1,347
16.6
9,425
7,804
20.8
Medium
523
585
-10.6
2,811
2,953
-4.8
Large
299
376
-20.5
1,763
1,801
-2.1
Upper Large
13
21
-38.1
131
103
27.2
Gov’t Rental SUV
172
148
16.2
1,434
1,577
3,003
2,651
13.3
14,815
12,159
21.8
Private
1,174
875
34.2
5,941
4,557
30.4
Business
1,500
1,470
2.0
7,942
6,862
15.7
Gov’t
80
44
81.8
287
222
29.3
Rental
249
262
-5.0
645
518
24.5
2,876
2,197
30.9
11,996
10,042
19.5
Light Commercial Private
May '14
Total market
May '13 Mth% diff
2014 YTD
2013 YTD % YTD
705
438
61.0
2,825
1,973
43.2
People Movers
67
48
39.6
360
299
20.4
1,930
1,579
22.2
8,477
7,311
15.9
Sports
80
129
-38.0
540
639
-15.5
Gov’t
133
124
7.3
481
532
-9.6
SUV Small
725
468
54.9
3,904
2,538
53.8
Rental
108
56
92.9
213
226
-5.8
SUV Medium
1,221
1,037
17.7
5,663
4,772
18.7
9,606
8,519
12.8
47,592
42,108
13.0
SUV Large
1,015
1,122
-9.5
5,019
4,675
7.4
Private
3,374
2,702
24.9
17,035
14,284
19.3
SUV Upper Large
42
24
75.0
229
174
31.6
Business
5,305
4,923
7.8
26,488
23,636
12.1
Light Buses
50
26
92.3
206
398
428
-7.0
1,777
1,867
-4.8
Vans
565
384
47.1
2,301
2,088
10.2
-1.2
Pick Up/Chassis Cab 4x2
850
644
32.0
3,744
2,863
30.8
Pick Up/Chassis Cab 4x4
1,411
1,143
23.4
5,745
4,989
15.2
420
359
17.0
1,862
1,436
29.7
38
30
26.7
185
201
-8.0
10,064
8,908
13.0
49,639
43,745
13.5
Business
Sub Total
Gov’t Rental Heavy Commercial
529
466
13.5
2,292
2,321
420
359
17.0
1,862
1,436
29.7
Other
38
30
26.7
185
201
-8.0
Other
Total
10,064
8,908
13.0
49,639
43,745
13.5
Total market
Heavy Commercial
102 102.0
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new car stock
Mixed views on supply issues
24,837
238
104
1,228
26,065
223
117
Mar ‘13
6,329
6,800
(471)
25,594
222
115
Apr ‘13
7,342
5,907
1,435
27,029
216
125
May ‘13
7,400
6,347
1,053
28,082
213
132
Jun ‘13
8,051
7,541
510
28,592
220
130
Jul ‘13
8,423
6,768
1,655
30,247
220
138
Aug ‘13
11,065
6,828
4,237
34,484
220
157
Sep ‘13
6,996
7,272
(276)
34,208
222
154
Oct ‘13
9,362
7,962
1,400
35,608
226
158
Nov ‘13
9,591
7,453
2,138
37,746
228
166
Dec ‘13
8,826
6,371
2,455
40,201
226
178
95,767
82,433
13,334
Total sales in 2013
2014
Variance
NEW CARS Imported
Stock
SOLD
Total stock at the end of December 2013
Average Days sales per stock day - YTD at hand
40,201
Days stock in NZ - New Cars 180 160 140 2014 120 100 2013 80
Jan ‘14
6,473
8,293
(1,820)
38,381
268
144
Feb ‘14
6,729
6,572
157
38,538
252
153
Mar ‘14
7,228
7,992
(764)
37,774
254
149
40 2012
Apr ‘14
8,251
6,150
2,101
39,875
242
165
20
May ‘14
8,498
6,802
1,696
41,571
237
175
37,179
35,809
1,370
Predicted sales for 2014
marac.co.nz
86,558
0 JAN
YTD total
60
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heartland.co.nz
Dec
(2,030)
5,799
Nov
7,385
7,027
Oct
5,355
Feb ‘13
Sep
Jan ‘13
AUG
26,867
JUL
Total stock at the end of December 2012
Days Average sales per stock day - YTD at hand
Isuzu’s newly launched sevenseater, four-wheel-drive MU-X utes on the yard. “The MU-X has been wellreceived and Isuzu doesn’t seem to have any problems meeting demand at this stage,” says Moore. Brian Read, dealer principal of Gisborne Motors, experienced some issues a few months ago because it was sometimes taking more than two weeks for new vehicles to be delivered. “We’re at the end of the line and it’s one of the harder places to service, so we’ve had some frustrations with that,” he says. “February dropped off for, but last month was strong.” Read had three Mazda3 SP25s on order because the variant has been so quick to sell in his area. He says the Mazda3 is popular with private buyers and a few companies with the marque creating some new deals. “But with other models it has been pretty quiet”.
Jun
Stock
SOLD
May
Imported
APr
Variance
NEW CARS
2013
Mar
Dealer stock of new cars in New Zealand
other dealers,” explains West. “If we get the right model, chances are we have got the wrong colour so we help each other out when we can, while a lot of our stock is presold”. Moore Cars in Whangarei – owned and operated by Stephen Moore and his wife Christine – stocks the Kia and Isuzu brands. “The supply from Kia has been good,” he says. “I’ve just sold three Rios to a company and they’re all in stock from Auckland.” Moore, who attended Fieldays for the first time this year, will be going back in 2015. He returned with leads for Isuzu’s D-Max and expects the marque to be able to supply all required stock. “The big hit for Isuzu has been its high-spec version of the D-Max. It has been the handsdown winner for us and sold out quickly. We’ve got one here and another one ordered.” He had already has one of
Feb
Autofile contacted some dealers to see how sales have been tracking and if there have been any issues with supply. LJ West, dealer principal of Dargaville Ford, says: “We’ve never lost a sale through being unable to supply. If people want something, they are prepared to wait.” He reports waiting times for most of the blue oval’s range including the Ranger, Fiesta, Focus, Falcon and Territory. “We have to order four months in advance and have excellent relationships with
Days of stock
T
here was a variance of 1,696 units between 8,498 new cars imported and 6,802 sold last month. The number of days’ stock in hand in May amounted to 175, while average daily sales came to 237. Last month’s stock level came in at 41,571 units compared to 39,875 in April. The year-to-date variance shows an increase of 1,370 when comparing 37,179 imports of new vehicles to 35,809 registrations.
used car stock
Unsold stock level increases T
here was a difference of 5,291 between 16,514 used cars imported and the 11,223 sold by dealers in May. This meant last month’s stock increased by 1,683 more than the 3,608 units in April. The year-to-date difference is now 9,192 used cars when 58,788 imports are compared to 49,596 registrations. Meanwhile, average daily sales are at 328 year so far in 2014 – up by eight per day compared to the first four months of the year – while days’ stock in hand are up from 48 to 63 over the same timeframe, an increase of 15. Autofile spoke to David Vinsen, chief executive of the Imported Motor Vehicle Industry Association (IMVIA), about volumes crossing the border compared to how the market’s shaping up. “The biggest factor is the growing economy and people having wellpaid jobs so they can improve their
cars,” he says. “That may seem a bit facile, but it’s the reality.” Importers and dealers do not appear to be speculating, but buying stock based on perceived demand. “It appears the used imports coming in this month are similar to last month and the level of trade seems to be ongoing. “If these numbers are going to be indicative for the year, we could reach a total last seen in the early 2000s. “We’re unsure how much of the market is push or pull, whether people are buying more expensive cars or they need to replace older ones, but we suspect it’s a bit of each. “This is the dilemma industry and officials must concentrate on, and how to stimulate the exiting of older vehicles.” The government is looking at removing “less-safe” vehicles from the fleet. It has yet to be established how scrappage rates can be increased – or what will happen to them.
Days stock in NZ - Used Import Cars 180 160
2013
USED IMPORTS Imported
Variance
2014
20 2012
marac.co.nz
Dec
Nov
Oct
Sep
AUG
JUL
Jun
May
APr
Mar
Feb
0 2013
Days Average sales per stock day - YTD at hand
3105
4,467
7,397
(2,930)
175
239
Feb ‘13
8,246
6,922
1,324
1,499
243
6
Mar ‘13
8,845
7,581
1,264
2,763
243
11
Apr ‘13
10,531
7,418
3,113
5,876
244
24
May ‘13
10,945
8,460
2,485
8,361
250
33
Jun ‘13
7,919
7,862
57
8,418
252
33
Jul ‘13
8,609
9,629
(1,020)
7,398
261
28
Aug ‘13
8,632
8,648
(16)
7,382
263
28
Sep ‘13
7,481
7,615
(134)
7,248
262
28
Oct ‘13
10,364
8,545
1,819
9,067
263
34
Nov ‘13
11,184
9,360
1,824
10,891
268
41
Dec ‘13
10,067
9,534
533
11,424
271
42
107,290
98,971
8,319
USED IMPORTS Imported
SOLD
Variance
Total stock at the end of December 2013
60
Stock
Jan ‘13
2014
80
40
SOLD
Total stock at the end of December 2012
120 100
for now. But the IMVIA views the introduction of technology as a key issue over the medium term. As for the industry at the moment, Vinsen says: “Imports don’t appear to be sitting unsold. It may be a case of a lot of dealers being able to source stock at the same time. “Last month may just have been a decent spike, but overall numbers are increasing. Importation systems are flowing and everything seems to be coping – and there are no blockages.”
Dealer stock of imported used cars in New Zealand
Total sales in 2013
JAN
Days of stock
140
“We don’t know because it’s hard to tell,” says Vinsen. “There’s no magic formula. “We’ve been keeping an eye on the fleet’s dynamics for the past eight to nine years, how it’s replenished and how to get newer stock in. “It’s encouraging the government has realised this is key. Incentives or enforcement may be looked into, but we’re unsure at the moment.” No new government policies are set to impact on used imports
Stock
0.7
Average Days sales per stock day - YTD at hand
11,424
Jan ‘14
8,807
9,470
(663)
10,761
305
35
Feb ‘14
9,100
9,155
(55)
10,706
316
34
Mar ‘14
11,258
10,247
1,011
11,717
321
37
Apr ‘14
13,109
9,501
3,608
15,325
320
48
May ‘14
16,514
11,223
5,291
20,616
328
63
YTD total
58,788
49,596
9,192
Predicted sales for 2014
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GLOBAL VEHICLE LOGISTICS
SERIOUS ABOUT AUS TO NZ Australia to New Zealand Have you considered it?
• Increased interest in stock from Australia • Huge potential to buy quality cars • Stock that works in this market • Established supply channel • Stock can be delivered within a week • Full package services in place
To find out more about this growing market, contact Danny Knight on 0274 443 433 or 09 412 2765 or email danny@autohub.co.nz www.autohub.co
+64 9 411 7425
info@autohub.co