Autofile magazine – 21 May by Autofile

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

Issue 9-2014 21 May 2014

Used cars to face high-tech issues S

olutions will be needed to integrate used imported vehicles into mandatory intelligent transport systems (ITS) and regulations because Japan may use different communication spectrums in cars sold there. For New Zealand to reap the benefits of high-tech systems in its fleet, an after-market product may have to be developed that translates data signals in vehicles to our allocated frequency. That was the view of Nick Brown, general manager of aviation and maritime at the

Ministry of Transport (MoT), on the way forward for New Zealand at the 13th ITS Asia Pacific Forum held in Auckland. “I don’t think we’re going to get into a situation where the world uses a single spectrum,” he told the conference, which was attended by about 400 delegates from 28 countries. Another option could be unplugging ITS units from vehicles and installing them into New Zealand-specific systems after broadcasting frequencies and standards have been set.

“Technology that makes cars hard to crash could have a transformational change on our road toll,” said Brown. “With a lot of other technology – be it enforcement or investment in infrastructure – it can bring the toll down gradually.” The government has also addressed issues related to data, including ownership, security and privacy, and another major issue will be regulation and investment through agencies. “Technology is a challenge when it comes to regulation, not

Law Reform Bill as well as the Supplementary Order Paper (SOP). The SOP addresses industry concerns arising out of the bill as reported back to the house by the commerce select committee. The so-called loan-shark laws had new clauses relating to credit-related insurance (CRI) and extended warranties added in the

p3 End of road for Luddites p7 Autofile quizzes minister p10 Spotlight falls on Rotorua p14 Safer Journeys progress p15 Sonata sings with design p19 Failing standard of proof

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Financial law reform on hold elays to the third and final reading of new legislation to stamp out loan sharks are preventing the industry from planning the Responsible Lending Code. The Financial Services Federation (FSF) is still waiting for Parliament to pass the Credit Contracts and Financial Services

In this issue

second reading of the bill. But the SOP will address problems relating to these clauses, which were highlighted by the FSF, and its members operating in the finance and motor vehicle industry. A ban was proposed on paying lenders commission on CRI

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End of the road for Luddites north is two lanes before reducing to single file a few kilometres before the tunnel. This is because the road on the other side is one lane and traffic needs to flow freely in the tunnel, presumably to prevent people inhaling too many fumes. The result can be massive traffic jams to use this route, which is supposed to make the trip north much quicker. To make matters worse, there were no signs before the last offramp to advise Easter holidaymakers of the delays ahead and give them the chance to take alternative routes. There was nothing intelligent about that, really. This situation will not change until SH1 is extended on the other side of the tunnel, which has been built for two lanes of traffic in that direction. Another example of ITS in Auckland are on-ramp lights that limit traffic flow onto motorways. They are often decried by motorists, especially when queueing eight deep over the Christmas holidays when SH1 is empty. The authorities defend the system by saying the city’s road network would grind to a halt without them. On a positive note, however, the ITS Asia Pacific Forum held in Auckland for the first time was an amazing insight into a future that’s just around the corner. There will be impacts on the automotive industry, from advanced safety systems that “talk” with roadside computers to driverless cars. Some developments are featured in this issue of Autofile and there’s more in the technology section of www.autofile.co.nz. One thing is for sure with ITS and that’s these systems will not wait for the Luddites to catch on. Darren Risby, editor

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Autofile is also available as an electronic copy via email. If you’d like to receive electronic copies please send an email with your name and organisation to: subscribe@autofile.co.nz. Back copies are also available on request. Copyright: Published twice monthly by 4Media, PO Box 6222, Dunedin 9059 All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of autofile in whole or part, without written permission, whether by xerography or any other means, is strictly forbidden. All rights reserved.

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he dictionary definition and modern use of “Luddite” is “somebody opposed to increased industrialisation or new technology”, but its origins can be found in 19th-century England. The Luddites were textile artisans who protested against newly developed labour-saving equipment from 1811-17. Power looms – and stocking and spinning frames – were introduced during the Industrial Revolution, and meant less-skilled and lowwage labourers could replace them. Folklore suggests the movement was named after Ned Ludd, a youth who smashed two stocking frames in 1779. The world has evolved since then. People either embrace technology with the enthusiasm of a puppy or sneer at it with suspicion, yet its advance cannot be stopped. Intelligent transportation systems (ITS) will be as big a game-changer in the automotive sector as cars being hybrid, electric or fuel-cell driven. That’s why the government, its agencies, high-tech companies and our industry organisations are taking such keen interest. When it comes to ITS here, will we be proactive, reactive, fall into line with the rest of the world, or follow other countries such as Japan and Australia? When it comes to some the ITS systems around Auckland, there is scepticism among some motorists. Take the motorway tunnel near Orewa, known as the Northern Gateway. Cameras on gantries record vehicles’ number plates to ensure users pay on time. But if you don’t have a debit or credit card, you have to throw cash into inadequate machines. The SH1 extension heading

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news [continued from page 1]

Action plan for the future least because it changes rapidly. It will probably change the way we regulate.” The government will now initiate a forum with key ITS stakeholders, such as agencies, councils, users and suppliers. “It will be a place where everyone comes together to achieve some consensus,” said Brown. “There’s an important role for the government in providing strategic leadership and initiating collaboration.” He added this country’s final ITS action plan was close to being finalised. “It’s a plan for government and a multi-modal plan. It proposes 15 areas of activity and 40 specific actions the government is going to deliver over the next four years.”

INVESTING IN SYSTEMS The NZTA has outlined its

factors – benefits and principles, investment priorities for ITS. clarifying our role and alignment of They include real-time safeITS investments.” speed messages to drivers, The next aim is to confirm innovative pricing approaches Visit www.autofile.co.nz for more stories sector roles and run pilots and efficiency in the freight from the 13th ITS Asia Pacific Forum. to confirm the potential of supply chain. One is about a new system that uses systems. These may include The agency says progress pedestrians’ smartphones to alert drivers. Developed by Mazda and the University of seeing if crowd-sourced GPS in vehicle-related systems Tokyo, it has been trialled in Japan. data can be used in traffic will be affected by the time A system that changes traffic signals so management. it takes for the fleet to be ambulances aren’t forced to run red lights Other trials may cover upgraded. is being rolled out in Queensland. better ways of identifying It believes ITS benefits And ITS are already driving New Zealand’s transport vehicles and after-market devices connected to vehicles will be network. to “smarten up dumb cars”, while fewer deaths, serious injuries ITS here will have to be aligned to and crashes, lower insurance the wider world. premiums, safer vehicles, “We’re keen to play a increased compliance and drivers proactive role in making good making safer decisions. things happen sooner,” said Allan Frost, group manager of Frost. “Collaboration is key to organisational support, told forum landing opportunities.” delegates the NZTA was adopting Martin Matthews, chief “upfront thinking” to challenges executive officer of the MoT, said and saw collaboration as essential.  his department would help set “We’ve identified three success – Allan Frost, NZTA

ITS with Autofile Online

“We’re keen to play a proactive role in making good things happen sooner.”

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news  government ITS priorities. It will be advising on ITS policy, regulation and investment, while looking ahead there is a need to remove legal barriers to accelerate the uptake of systems.

TUNING IN BLUETOOTH Bluetooth sensors are operating on Kiwi roads to monitor traffic, with more than 3,000km of lanes covered by BlipTrack developed by Blip Systems in Denmark. Engineering company Beca was behind the devices’ implementation here, and they have been installed on the Waikato Expressway and in Auckland’s Victoria Park Tunnel. Richard Young, senior project manager at Beca, said they pick up Bluetooth signals from cars to give the NZTA live journey times and route choices. It can pick up Bluetooth in all vehicles from cellphones, headsets or in-car navigation systems. “Most devices are for cars,” said Young. “It’s difficult to buy a new car without Bluetooth configured and you have to go deep into menus to turn it off. “New Zealand has one of the oldest fleets in the world, so we expect the pick-up rate to increase.” Bluetooth addresses can be encrypted before data is despatched to make it impossible to identify the device’s owner.

KIWIS TACKLE SPEEDERS Studies on variable speed-limit technology on New Zealand’s roads show it’s helping to cut the risk of fatalities. The rural intersection active warning system developed by Kiwi company Armitage Group displays a temporary 70kph limit when potential conflicts – such as right-turning vehicles on main roads – arise. Sensors before intersections trigger signs to display the reduced limit. When there are no vehicles crossing or turning, they stay blank. At one location, the risk of a car’s passengers being killed or seriously injured dropped from 60 to 25 per cent after installation.

Peter McCombs, president of ITS NZ, told delegates: “We are immensely proud to host the 13th ITS Asia Pacific Forum.”

The system’s success has resulted in a trial of speed-limit signs, which display 20kph when school buses stop. Hamish Mackie, of Mackie Research and Consulting, said it was effective because people’s attentions were caught well-ahead of the signs by showing a flash and then the speed. “Drivers are told exactly what to do, removing uncertainty about speeds.”

by Google for US$1 billion, boast 60 million users. They were now pointing the way to the future particularly in attracting younger people. He urged delegates to stay ahead of the game as technology brought new players into the

sector such as Domino Pizza, one of the largest fleet operators in the US. “We must understand their needs and partner with them.” David Warburton, chief executive officer of Auckland Transport, said ITS could help deliver choices where and when people wanted them. He said areas where ITS could be useful included event and incident management and parking. Carey Griffiths, New Zealand Police’s national road policing manager, said systems needed to support safer journeys, safer roads and safer speeds. “We see ITS helping manage compliant drivers so we can focus on high-risk drivers, in particular speed and alcohol.” Technology could help prove offences in courts, which Griffiths said would be important in determining how to handle privacy issues. “ITS will deliver significant benefits to law enforcement in providing better road safety and efficiency.”

TAKING GLOBAL VIEW The chairman of ITS Japan explained how he headed up a government framework for automated driving to reduce fatal crashes, increase traffic efficiency and enhance mobility for older people. Dr Hiroyuki Watanabe said: “Like New Zealand, Japan has a growing population of ageing people. “We are now focusing on the social benefits of ITS to reduce congestion and accidents, and give the aged greater mobility.” Scott Belcher, president of ITS America, said transportation needed new technology-led solutions. He said smartphones had become the most important tools. “It’s where you start your trip and decide whether to take your car, public transport or ride share.” Belcher said technology driven organisations, such as Cars To Go – a vehicle-sharing operation owned by the same company as Mercedes-Benz, and Waze, bought

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Finance providers await change policies – such as guaranteed asset protection and payment protection – financed under credit agreements. It was feared issues would arise if lenders were banned from receiving commission and effectively being paid for their time in arranging such products in this way – as happens in the vast majority of such contracts. However, the SOP includes changing the clause so that commission can be paid to the extent of a reasonable level and if the products are sold in a responsible manner. Details about how commission on credit-related insurance (CRI) and extended warranties will work will be covered in the Responsible Lending Code that forms part of the legislation. Lyn McMorran, executive director of the FSF, told Autofile: “We are very

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supportive if it comes out like this because it’s what we asked for.” FSF is relieved the government will address the issue because not paying financiers and agents for organising CRI policies could have led to many consumers losing the

option of taking it out. The federation hoped the bill’s third reading might occur prior to the budget announcement on May 15 but it did not happen. FSF expects to see it pass before Parliament rises at the end of July prior to the election.

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section 9b(3b) in any respect’. “That will not prohibit the payment of commission to lenders financing the credit-related insurance premium so long as this is responsibly sold and, in relation to 9B(3B) of the bill, that the

“We’d like to see it passed sooner rather than later, like everyone else, so we can get on with writing the code and getting it implemented.” – Lyn McMorran, FSF

• MACHINERY

• PLEASURE CRAFT

“We’d like to see it passed sooner rather than later, like everyone else, so we can get on with writing the code and getting it implemented,” says McMorran. The federation is also keen to see loan sharks prevented

from exploiting borrowers through enforcement of the new legislation as soon as possible. “It’s unfortunate the bill has gone through the committee of the whole house stage right before the budget,” she says. Passing the bill following its third reading is expected to be relatively quick once it gets on the order paper. In the lead up to New Zealand’s general election the priority given to the bill compared to other legislation they have on their agenda will determine when it will get read again. Extensive discussions with the Minister of Consumer Affairs, Craig Foss, and his officials has enabled FSF to voice industry concerns about eliminating commission for CRI and extended warranties. “As a result of these discussions, a Supplementary Order Paper [SOP] was raised to accompany the Credit Contracts and Financial Services Reform Bill through the house on its third reading. “This resulted in a change to the new paragraph (c) of clause 25 of the bill amending section 45 of the act preventing commission from being paid to the creditor if the creditrelated insurance [CRI] premium is being funded by the loan. “The SOP amended this paragraph to read ‘the insurance is financed under the credit contract and the creditor has, in relation to the credit-related insurance [CRI] contract, breached

creditor has assisted the borrower to reach an informed decision as to whether or not to enter into the agreement and to be reasonably aware of the full implications of entering into the agreement.” Another way of interpreting this would be that a creditor can receive commission on credit insurance financed by it, so long as the creditor has made reasonable inquiries to satisfy itself that:  The insurance will meet the borrower’s requirements and objectives and  The borrower can make the loan payments without substantial hardship. “Ultimately, the SOP is a very good result for responsible providers of CRI recognising that in the majority of cases such insurances are being sold responsibly and that they do provide significant benefit to consumers if they are ever in the unfortunate position of needing to claim on them.” “We are grateful to the Minister for listening to our concerns and taking the time to understand them. “The FSF and the government want to stop some of the dreadful behaviour that goes on, and there is value in CRI when it’s sold reasonably. “After all, the vast majority of loans and related credit-insurances are sold responsibly to the mutual benefit of the consumer and the credit provider.”

news

Minister explains action McMillan reflects

fter the second reading of the Credit Contracts and Financial Services Reform Bill, Autofile asked the government why clauses on commission for credit-related insurance (CRI) and extended warranties had been put into the proposed legislation. They provoked an outcry in the financial and automotive sectors – and not just because of their unintended consequences. They also appeared to be tagged onto the loan-shark laws at the 11th hour. Craig Foss, Minister Craig Foss for Commerce Affairs, was asked why the clause banning lenders from receiving CRI commission was added for the bill’s second reading. He said the Commerce Select Committee believed allowing commission to be charged on insurance “would result in the creditor receiving interest and fees from funding the premium, as well as the commission”. Under the clause, the provider would have been unable to receive commission for arranging CRI if its premium was financed by the loan. “This was seen as a double benefit inconsistent with the policy direction of the act in relation to credit fees where creditors generally can’t add to costs they pass onto borrowers.” Foss said clauses were added for the second reading by the Commerce Select Committee after it heard submissions. Another new clause related to extended warranties in that when they went beyond the loans’ terms subsequent payments would have to have been refunded. For example, if a car loan was paid off within two years and the buyer had a three-year warranty, would it have been necessary to cancel the warranty with the difference refunded to the consumer? “The bill as introduced extended the rebate obligation

to repayment waivers and the committee added a rebate for extended warranties,” replied Foss. “The bill only applied to warranties provided by the creditor and it’s appropriate for the relationship with the creditor to be ruled off if the loan is repaid. An extended warranty can run with the car if it’s sold and the debt repaid.” Autofile asked the minister if he agreed lending and insurance should go hand-in-hand to offer protection for consumers. “Nothing prevents lenders from making insurance cover a mandatory term of the loan agreement,” he replied. “The committee wanted to remove the double benefit of creditors receiving fees and interest on the premium as well commission on selling the policy.” Foss pointed out that extra changes and recommendations to the bill were also made following a report by officials. Some consequential amendments were made to its revised version, which weren’t reflected in recommendations to the select committee. In regards to insurance commission, a government report outlined the issue. “The bill prohibits a creditor from charging commission on CRI when the creditor requires the debtor to obtain the insurance from a particular insurer or insurers, or has an arrangement in place that has the same effect,” it stated. “In some situations, the creditor will finance the insurance under the credit contract. It isn’t clear whether these arrangements are also captured by the prohibition on commission.” The report’s solution and approach at the time was “where CRI is financed under the credit contract, the prohibition on receiving a commission should apply”.

ob McMillan is looking forward to travelling and learning to play golf as he prepares to hand over his 50 per cent share of Team McMillan BMW to its coowner Collins Asset Management in June. “The offer was put to me and I couldn’t refuse,” he told Autofile. McMillan, pictured, is 72 and looking forward to retirement. “It’s a seven day a week business and you have to work six days a week, between eight and 10 hours a day to succeed.” He has been a dealer his entire working life, apart from two years after he left school when he was a public accountant. His first role was at John Andrew Ford, before he left to work at a Ford dealership in eastern Sydney.

He returned to New Zealand and became a subdealer for John Andrew Ford. “I hated the word sub – one per cent of the sale went to John Andrew,” he told Autofile. “I fought like hell and a year later I was made a full dealer in 1970.” He took over the original BMW dealership in 1985, which grew to become Team McMillan, New Zealand’s largest BMW dealership. He says the biggest industry changes have been centred on technology. “We’re selling more cars, but the prices are lower and the cars are smaller, meaning lower margins,” he says. “Today dealers have had to reset their business plan and focus on parts, service, finance and insurance.” Read the full McMillan story in June 5 Autofile

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letter to the editor

MIA facilitates FCAI study tour David Crawford, chief executive of the Motor Industry Association of New Zealand (MIA) writes about the changes to the Australian motor vehicle industry and New Zealand’s experience.

uring April, Tony Weber, chief executive of the Federal Chambers of Automotive Industries (FCAI), Australia and James Hurnall, their technical director, visited New Zealand to study our experiences with both the parallel and used vehicle import sectors. This follows recent discussions across the ditch on the potential relaxation of

controls on used imports. MIA facilitated meetings with government, some media commentators, the AA and a number of MIA members. Of principal interest to the FCAI were the conditions in New Zealand at the time the used car sector developed, how parallel and used imports have coexisted and experiences of the new vehicles distributors in New Zealand during that time. The study tour was as interesting for me as it was for them, as this was the first opportunity I’ve had to consider the history of the new and used sectors since taking up the role as chief executive of MIA early last year. For me the main discussion points of interest relate to the political and business

environment in the ’80s and ’90s compared to now and the difference between used and parallel imports. One of the early points to arise in the discussion was the difference between parallel imports and used imports. We consider parallel imports to be the importation of near new vehicles that bypass the official New Zealand distributor for that marque. These vehicles have typically been registered (sold) overseas with little mileage, de-registered and then imported into the country purportedly as a new vehicle. Under the Motor Vehicle Sales Act they are not new vehicles as they have previously been registered overseas and as such they have for the purposes of

our legislation been sold, albeit they are in new or near new condition when they arrive in New Zealand because they might not have travelled more than 50 to 100kms. Used imports are typically older vehicles that have been sold to an end user. They clearly are not new. Managing parallel imports compared to used imports raises different considerations. One thing that was clear from the discussions we had was the business environment is very different now compared to when the used car sector first developed in New Zealand. Back in the 1980s we had a heavily regulated market, high tariffs to protect our domestic manufacturing and assembling  operations and an old fleet.

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ederal Chambers of Automotive Industries (FCAI) is a lead industry organisation that represents the manufacturers and importers of passenger vehicles, light commercial vehicles and motorcycles in Australia. The organisation is currently reviewing the changes happening in Australia that are similar to those experienced in New Zealand 25 years ago. Following last week’s budget announcements in Australia FCAI stated the Australian government has undermined the job security of tens of thousands of automotive manufacturing and supply chain workers with its plan to cut $900 million from the Automotive Transformation Scheme (ATS). Australia’s three domestic automotive manufacturers; Toyota, Holden and Ford and their supply chain are working to transition their operations after they announced the closure of the Australian car-

making operations earlier this year. “After only eight months in office, the government has vowed to cut $900 million of the $1.3 billion in funding that remains in the ATS from 2015,” says FCAI chief executive Tony Weber. “If this cut passes Parliament, it will intensify the financial pressure on the supply chain, which has already factored ATS funding into their longterm business and investment decision-making process.” Weber was deeply concerned for the 45,000 workers directly employed, and the more than 100,000 workers indirectly employed in the automotive sector, around Australia. “The FCAI has repeatedly advised the government of the serious consequences significant cuts to the ATS could have on the automotive industry in Australia, at what is already a difficult time for manufacturing and supply chain workers,” says Weber.



Cars were expensive to purchase with a limited number of models to choose from. The new car available today is a world apart in terms of quality, features and reliability from those available to New Zealanders back then. They are also supported by a customer focused dealer network, with legislative backing to ensure consumer protection. The range of vehicle models available has significantly expanded, and for the size of our market is one of the best in the world per head of population. Affordability has improved significantly. If we look at the consumer price index (CPI) of new cars from an index base in March 1994 of 1000, there was a 20 per cent decrease in real car prices. During the same period the total CPI increased by 55 per cent. In other words, the price of a new car today is 75 per cent

below the 1994 price – if new cars had grown at the same rate as the total CPI index. There are other factors affecting our ability to purchase a car such as household incomes, which have tracked up during the past 20 years. Median household incomes grew 46 per cent in real terms between 1994 and 2009 and in the same period, average net (after tax) ordinary time wages grew 24 per cent in real terms. The growth in household incomes has meant that since 1988 the number of weeks it took earning the average gross wage to buy a car, with the car adjusted for a constant quality, has been steadily declining. In 1988 it took 92 weeks to buy that car, by 2007 it only took 35 weeks. Another feature which has made it easier to purchase a new car is the substantially better access to and affordability of finance.

David Crawford, chief executive, MIA

In 1988 the floating interest rate was 19 per cent but aggressive action by successive governments to control inflation over the past 25 years has dropped mortgage interest rates to around five to six per cent today. Today’s business in New Zealand is very similar to Australia. All this raises the question of whether there is any public benefit to freeing up the market in Australia to allow in a large

number of used imports. The rate of vehicle ownership in both countries is very high with more than 700 vehicles per 1000 people. The big difference between Australia and New Zealand remains the average age of the vehicle fleets and the penetration rate of safer vehicle technologies. Australia has a lower average vehicle age and the rate of penetration of new technology is much higher than in New Zealand. It will be an interesting time for Australia as they grapple with whether or not they should free up the importation of used vehicles. It is my view that there appears to be much to lose and little to gain for the Australian consumer. David Crawford, chief executive Motor Industry Association

Quick clean power New advisor for IMVIA

t’s been a long way between the fast-charge station must be a charges in Northland but the huge benefit for Whangarei and introduction of a fast-charge EV owners. station for electric vehicles (EV) “It’s innovative and a huge makes environmentally-friendly kudos that the first fast charger has cars a serious motoring option for happened in Whangarei,” he says. northerners. The Whangarei dealership had New Zealand’s first fast-charge enquiries when the fast-charge station for EVs was station opened officially opened and Mudgway by Minister for the recognises Environment Amy the increased Adams on May 8. potential of EVs The station with improved - operated by charging Northpower in infrastructure. Alexander St, Drivers cover provides motorists big distances in with a free charge Northland and 100 Minister for the Environment Amy Adams that only takes to 150 kilometres uses the country’s first EV fast-charge station with Northpower's Russell Watson. between charging 30 minutes. In its central location people stations was too far, and waiting can pop over the road for a coffee eight hours for a full charge with a or visit the library in the time standard charger was prohibitive. needed to achieve an 80 per cent Northpower is determined to charge of their EV battery. get people into electric vehicles IC Motor Group Nissan brand and for the foreseeable future the manager, Glenn Mudgway says charger will be free to use.

he newest arrival at the Imported Motor Vehicle Industry Association (IMVIA) will drive the organisation into the future of motoring. The team at the Auckland office has been strengthened with the appointment of Lonnie O (Kit) Wilkerson IV, pictured, as the new policy advisor and analyst. Chief executive, David Vinsen says the position aligns with similar officials in government departments. “We met with the Associate Minister of Transport, Michael Woodhouse, in February and he advised us to be involved in all aspects of transport, not just things that were related to used vehicles,” says Vinsen. That recommendation led IMVIA to appoint Wilkerson after six months of strategic planning and he’ll be in an understudy and support role for Malcolm Yorston in technical services. The statistician role that was

carried out by John Nicholls for many years is returning in-house and is included in Wilkerson’s role. “John consulted on a contract basis while retired in Gisborne and he’s nearing his 90th birthday.” Wilkerson has extensive computer expertise and will assist in communications, and alerts and content management of the IMVIA website. After Wilkerson was appointed his interested in artificial intelligence was revealed, which will help the IMVIA to better understand intelligent traffic management systems and autonomous vehicles. His qualifications include a Bachelor of Arts in Applied Linguistics and Computer Science and a Master of Arts in Linguistics from Southern Illinois University. He came to New Zealand in 2011 to undertake a PhD in Computer Science at AUT, which he is currently working on. www.autofile.co.nz | 9

regional report

Steady growth in thermal hub A

s Rotorua’s log exports to China grow, the town’s processing plants are under increasing pressure. Last year Rotorua saw the closure of Tachikawa Forest Products’ sawmill, with more than 100 jobs axed as a result of the shutdown. “There has been a huge rationalisation in forestry, a lot of job cuts and consolidation,” says John Clough, dealer principal of Rotorua Kia. “It’s a significant sector in the local economy and it has considerably reduced from where it was five or 10 years ago.” China’s expanding economy has driven a surge in the volume and price of New Zealand log exports but Kiwi mills haven’t been able to compete with lower-cost Chinese mills that saw logs for temporary construction timber. David Wilson, chief executive of Rotorua Toyota, says a string of job losses in the town caused a drop in vehicle sales. “It’ll always impact when 200 staff lose their jobs, with three major employers in the town

The iconic Bath House building now houses the Rotorua Museum, located in the Government Gardens.

closing down, including a timber mill and a processing company,” Wilson says. “Some of those staff would have left town to seek employment elsewhere.” The forestry sector accounts for 14.7 per cent of Rotorua’s gross domestic product (GDP). Tourism makes up 10.5 per cent of its GDP and is the largest employer in the town. Rotorua mayor Steve Chadwick believes the town’s growth opportunities are in the

Used car sales for Rotorua - Mar 2013 to Mar 2014 Public to Dealer

Public to Dealer to Public Public

Total

Public to Dealer %

“We’ve got a smaller volume of people, so we have to do a better job with aftersales, we don’t have the luxury of a large population.” – David Wilson, Rotorua Toyota.

Rotorua vehicle sales - Mar 2013 to Mar 2014

Public to Dealer to Public % Public %

Apr ‘13

260

713

145

1118

23.3%

63.8%

13.0%

May ‘13

265

743

143

1151

23.0%

64.6%

12.4%

Jun ‘13

226

617

129

972

23.3%

63.5%

13.3%

Used cars

New Cars

Used New Commercials Commercials

Apr ‘13

106

May ‘13

Jun ‘13

Jul ‘13

Aug ‘13

Sept ‘13

133

Jul ‘13

281

688

154

1123

25.0%

61.3%

13.7%

Aug ‘13

258

700

129

1087

23.7%

64.4%

11.9%

Oct ‘13

Sept ‘13

266

581

174

1021

26.1%

56.9%

17.0%

Nov ‘13

Dec ‘13

Jan ‘14

106

Feb ‘14

Mar ‘14

Apr ‘14

941

900

476

NZ sales past 12 months 108,026

85,549

6781

32,488

0.9%

1.1%

1.3%

1.5%

40.4%

-26.4%

25.0%

56.0%

Oct ‘13

262

633

124

1019

25.7%

62.1%

12.2%

Nov ‘13

284

612

141

1037

27.4%

59.0%

13.6%

Dec ‘13

272

645

129

1046

26.0%

61.7%

12.3%

Jan ‘14

272

677

125

1074

25.3%

63.0%

11.6%

Feb ‘14

250

726

130

1106

22.6%

65.6%

11.8%

Mar ‘14

261

670

126

1057

24.7%

63.4%

11.9%

Apr ‘14

228

659

107

994

22.9%

66.3%

10.8%

3125

7951

1611

12687

24.6%

62.7%

12.7%

-7.6% -26.2% -11.1%

18.7%

Annual total Change on Apr 2013

National YTD average

-12.3%

10 | www.autofile.co.nz

56.6%

24.7%

12 month total

% of national sales Change on Mar 2013 Population

New Zealand

Rotorua

4,524,000

68,900

1.5%

health spa industry, logging and geothermal energy sector. The Rotorua Sustainable Economic Growth Strategy, noted that while Rotorua had “successfully leveraged its geothermal resources for tourism purposes” relatively little had been done to tap them for energy. It went on to identify geothermal energy supply as having a “high” potential to generate significant employment growth and economic output in Rotorua.

Used car sales buoyant During the twelve months between May 2013 and April 2014, Rotorua recorded 941 used car sales, which was a 40.4 per cent increase on the same period in 2013, while used-commercial sales increased by 25 per cent. The strong market pushed John Clough, dealer principal of Kia Rotorua, to bring in used imports for the first time in fifteen years. “Because of the lift in the market we needed a steady supply of good quality used vehicles, which we don’t seem to be able to source New Zealand new.” He is predicting a sales drop ahead of September’s general election. “We will operate our business in anticipation of that happening, but in the long term we are optimistic.” He says the Rotorua market has improved, but not as significantly  as the rest of the country.

regional report Michael Meyer, dealer principal of Autohaus Rotorua



“The current economy is still very fickle and this far on through the recession one would have expected a stronger lift,” he says. “We’re seeing the lifts on a much smaller scale. It’s a very challenging local market because we have limited population and we don’t have an overly wealthy local economy.” He told Autofile the demand for the low-end vehicles had fallen flat. “The bulk of our sales are the higher-end new cars, or our late model New Zealand new.” Neville Harper, director of Bay Of Plenty Motors, says his business tends to remain steady, even when the rest of the market is down. “We have been in business since 1949 and because we do so much repeat business I haven’t really noticed quieter times,” he says. “It has been fairly consistent.” Harper’s dealership specialises in vehicles priced between $10,000 and $20,000. “Cars you think are going to sell sometimes stay on the yard for a while, you really can’t tell what’s going to sell well.” Rotorua attracts around 3.2 million visitors per year. More than two million are domestic visitors. “People have the time to look around while they’re on holiday,” he says. “We’ll often sell a car to someone from Auckland.” Harper says the biggest change recently has been Turners Auctions’ focus on the retail market. “We always adapt and evolve and you have to go with the changes in the market,” he says. With the rise of internet sales

Autohaus Rotorua

in the past decade, he has noticed the number of dealers with real estate drop. “Between 2008 and 2010 there were a lot of dealers going out of businesses. The vacant sites have since been redeveloped so the opportunities for new dealerships on those sites are no longer there.” Harper is not worried about impending mandatory electronic stability control legislation. “We just adapt and change. It’s good to have these safety features in cars.”

choose locals. You get loads of applications, mainly those without experience. “The main thing you need to do is build a relationship with customers, anyone can learn about cars, but being able to talk to people is quite a hard skill to learn.” Sales of 476 new commercial vehicles were up by 56 per cent compared to the same period last year.

David Wilson, chief executive of Rotorua Toyota says the growth was leveraged on sales to tradies, farmers and the logging industry. He says success in Rotorua comes down to an emphasis on customer service. “We’ve got less people, so we have to do a better job with aftersales, we don’t have the luxury of a large population.”

New market down Meanwhile, the number of new vehicle sales of 900 between May 2013 and April 2014 is down by 26.4 per cent compared to the previous year. Michael Meyer, dealer principal of Autohaus Rotorua, says new vehicle sales are on the rise again. Recent events such as Rotorua Multisport Festival were also the catalyst for some out-of-town sales, he told Autofile. “We are always going to be bucking the trends, the main centres are up to 50 per cent on what they were last year but that is not the case here. It comes down to location.” The dealership took on the Ford franchise about six months ago and he says it has been challenging to resurrect the brand in the town. “There’s great new product on the horizon over the next two years.” He says finding local people with sales experience is tough. “Sales staff are not something we look overseas for, we tend to

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GLOBAL VEHICLE LOGISTICS

Serious about service Transporting vehicles half way across the world without a hitch is a challenge few businesses would relish but the opportunities were too good for one Kiwi to pass up. Back in 2002 John Davies, managing director of Autohub identified the need for a seamless port to door service for New Zealand motor vehicle dealers buying cars from Japan, so was born the first port to door logistics service, Autohub. “John went to Japan to put all the elements together, when he came back I remember sitting in the office waiting for the phone to ring, not knowing if dealers would like the idea or not,” says Tony Teihuis, customer services manager for Autohub. “We just didn’t know how it was going to go; looking back it was a no brainer, but at the time it was new and uncharted territory.” Last year Autohub shipped more than 40,000 cars to New Zealand from various places around the globe, but mostly from Japan, the United Kingdom and Australia. A far cry from 2002 – so what’s the secret? “In simple terms – it’s keeping customers and the way to keep them is to look after them,” says John. “Customers’ vehicles must get to New Zealand as soon as possible, in the same condition they bought them in and with as little hassle as possible”. Autohub understands the need to make shipping painless, simple and reliable. Of course for this to happen a lot goes on behind the scenes and the experience of Autohub’s staff makes the difference. Most of the front line people were car dealers and they understand the market and what is required. There is more than 20 staff employed in New Zealand, about 30 in Japan as well as offices and representation in the United Kingdom and Australia. To ensure service is always a high priority Autohub recently made some changes to its team. Keisuke Nagashima joined John, Tony, Joe and Andrea in the management team, and he is learning the industry from start to finish, providing Autohub customers with all the tools they need to have a successful business. Keisuke has in-depth knowledge of both the New Zealand and Japanese automotive industry and systems and is dedicated to building a strong future for Autohub through excellent customer experiences. Blair Howard has been appointed New Zealand sales manager. Blair was previously responsible for North Island business development and has been with Autohub for over six years. “Autohub systems are tight and dependable, which means dealers are able to rely on us – knowing their vehicle is in good hands and on a dependable regular shipping schedule,” states Blair.

Keisuke Nagashima

Blair Howard

Corey Dick

“Our guys in the field are there to support our dealers. The staff at Autohub make sure they understand our clients, they are all excellent at what they do.” Corey Dick has replaced Blair in the role of North Island business development manager. Nigel McAuley completes the sales team in his role as South Island / Wellington business development manager. Corey and Nigel are keen to develop their areas and reinforce the benefits for current and future customers of using Autohub as their preferred shipping service. “They are good listeners and believe in the customer service ethos we have here, I think they’ll be well received and represent us well,” says Blair. There are unique services Autohub offers that dealers may not think about but they make up the overall package. When Autohub receives a car from the agent, they then deal with MPI (MAF), NZTA and odometer inspection agencies, along with the required paperwork. A gate in survey is conducted to log the condition of the vehicle, then a ship is organised that will get the customer’s vehicle to New Zealand in the fastest possible time. When it arrives staff members organise the documentation and transport to wherever the customer wants it to go. Autohub’s insurance package also ensures the car is covered by a comprehensive policy, not just a marine insurance. This covers the vehicle for damage over $250 whilst in their care. In addition to a seamless vehicle logistics system, Autohub also rewards clients for their loyalty by providing Autohub Rewards dollars. Every car a RMVT ships through Autohub, they receive Autohub Rewards points to the retail value of $10. This accumulates until the trader wishes to purchase items from the Autohub Gift suppliers found on the website www. autohub.co.nz/nz/rewardsgifts.html. “We even purchased an engagement ring for one customer,” says Tony. “Autohub has sent people on holidays, supplied endless electronics like big screen TV’s – it doesn’t take long to add up.” With representation everywhere, Autohub and their customers are looking forward to an even bigger year ahead. If you are not currently receiving the same service from another shipping company, give us a call. Head Office: 09 411 7425 Blair Howard: 027 479 6998

Nigel McAuley: 027 8765434 Corey Dick: 027 876 5435

Nigel McAuley

www.autohub.co

+64 9 411 7425

info@autohub.co

new cars

Made over for extra space

issan has redesigned its X-Trail for the 2014 model year and, for the first time, with three-row seating for seven passengers in the ST two-wheeldrive model. Interior highlights include passenger and cargo flexibility with the marque’s EZ Flex seating system. The cargo system has 18 adjustable variations on 4WD tworow models between the cargo and occupant areas. The co-efficient of drag has been reduced by optimising the A-pillar section and outside mirror shapes, which helps limit wind noise. Turbulence behind the body has been cut thanks to the rear roof spoiler, rear side spoiler and combination lights. The Ti model’s “moon roof” offers a view through its full cabin length. The front glass panel slides and tilts,

while the rear one is fixed. When in the open position, the front panel slides under the fixed second panel. Standard features include a fiveinch advanced drive-assist display, USB connection for iPod interface, hands-free Bluetooth with streaming audio and a rear-view monitor. The X-Trail’s around view monitor with moving object detection system uses four cameras on the front, side and rear to provide a virtual 360-degree view around it. It has extra selectable split-screen close-ups of the front, rear and curb views to help out in tight spots. Each X-Trail has a 2.5-litre fourcylinder engine rated at 126kw and 226Nm of torque. It’s matched with an advanced Xtronic continuously variable

transmission (CVT) with manual mode, which is about 10 per cent more efficient than the previous one. Fuel economy is 8.1l/100km for front-wheel-drive CVT models, while AWD models are rated at 8.3l/100km. Active technologies include trace control, engine braking and ride control. Then there’s four-wheel independent suspension, vehicle

dynamic and traction control, and hill-start assist. The X-Trail is priced from $39,990 for the seven-seat ST 2WD to $53,290 for the Ti 4WD.

The X-Trail’s Ti model

Entry level decreases Safety in city proves ‘superior’

third 2.5-litre model has been added to Subaru’s Outback range – the 2.5i Tourer. The price-leading variant at $45,990 lowers the entry level to the medium-sized SUV range from the $49,990 2.5i Sport. It boasts the same four-cylinder Boxer engine as the other 2.5-litre models with 127kW and 235Nm of torque, and the marque’s Lineartronic transmission with manual mode accessed by paddle shifters. The 2.5i Tourer sits on 17-inch alloys, has a 213mm minimum ground clearance and is rated to tow 1,500kg. It’s the only 2.5-litre variant to be equipped with multi-function roof rails and self-levelling rear suspension. It can be distinguished from the Sport and Premium by the

black body cover under the front and rear bumpers. The Tourer’s safety features include traction and vehicle dynamics, ABS, reverse camera, seven airbags, anti-intrusion beams and ring-shaped cabin reinforcement. The Outback is also available in two diesel models with manual or SLT transmission, while a 3.6-litre six-cylinder motor is fitted to the 3.6R and the 3.6 Premium. “The SUV market is continuing to boom,” says Wallis Dumper, managing director of Subaru NZ. “We offer a wide range of SUVs. Over the years, we’ve had Legacy owners wanting to make the move to the Outback. People who previously thought they could not afford one can now consider it.” Subaru’s 2.5i Tourer

olvo’s reputation for safety was endorsed by the US Insurance Institute for Highway Safety (IIHS) test programme, which rates the performance of systems that prevent front-end collisions. The S60 and XC60 secured the highest rating of “superior”, with the marque’s City Safety being the only standard low-speed crash system in the test, which included 74 vehicles. It includes tests on front-to-rear collisions at 20kph and 40kph, with an extra point for vehicles with relevant warning systems. The S60 and XC60, pictured, are equipped with City Safety, collision warning with auto-brake and pedestrian detection systems, and were among seven models to be rated “superior” in the new test. Volvo’s low-speed City Safety feature is standard on all new models and most have technologies available that detect, warn and brake automatically to avoid rear ends of other vehicles

– and moving pedestrians and cyclists at higher speeds. Steve Kenchington, general manager of Volvo Cars NZ, says: “With City Safety standard on Volvos here, excluding the XC90, we’re showing leadership in dealing with frontalimpact accidents and a broader scope of real-life scenarios, including pedestrian and cyclist detection.” He says the auto-brake system results in fewer accidents and benefits documented by a Highway Loss Data Institute report shows insurance claim frequency dropped by up to 20 per cent. “Since we introduced City Safety in 2009 on the XC60, the system has been a valuable feature for customers with panel damage down in the one-to-four-year car park,” says Kenchington.

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Row over emissions

missions from vehicle exhausts and methane from cows have contributed to driving up New Zealand’s greenhouse gas levels by 25 per cent over the past two decades. Greenhouse gas emissions went up by 15,406 gigagrams to 76,048 in 2012, according to reports released by the Ministry for the Environment. “The four emission sources that contributed the most to this increase were dairy enteric fermentation, road transport, agricultural soils and consumption of hydrofluorcarbons,” officials state. Tim Groser, Minister for Climate Change Issues, is adamant this country will meet its Kyoto Protocol targets and have a surplus of credits. He says: “New Zealand is committed to doing its fair share and has an unconditional commitment to reduce emissions to five per cent below 1990 levels by 2020.” Visit www.autofile.co.nz for the full story.

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News in brief Car makers in Japan back free trade with Australia The Japan Automobile Manufacturers’ Association (JAMA) has backed an agreement reached by its government with Australia on an economic partnership agreement. Chairman Akio Toyoda says: “The industry is determined to supply – in line with this agreement – a broader range of products and services geared to the needs of consumers, and to contribute to closer economic ties between Japan and Australia.” Three-quarters of Japanese cars will be freed from Australia’s existing five per cent tariff when the deal is ratified by each country’s government, while the rest of the vehicles will be tariff-free after three years. The tariff has protected Australia’s vehicle-making sector, which will be gone in three years’ time. The government there is predicting retail purchase prices should drop by about $1,500 on average. JAMA hopes the agreement will accelerate the progress of Trans-Pacific Partnership and Regional Comprehensive Economic Partnership talks covering East Asia, as well as talks on other free-trade agreements.

Hybrid sports car beamed up with technology BMW will be the first marque to offer a production vehicle with headlamps featuring a new laser-light concept that appeared at Frankfurt Motor Show in 2011. While the basic version of the i8 – the world’s first plug-in hybrid sports car that goes on sale later this year – is equipped with high-intensity and energy-efficient LED headlamps, the optional laser ensures a high-beam range of up to 600 metres. This doubles the LED’s high-beam range and boosts energy efficiency by 30 per cent. The laser diodes are 10 times smaller than conventional ones, and save space and weight inside the headlamp. The height of the reflector has reduced from 9cm to less than 3cm. Several high-performance diodes emit a strongly bundled beam via lenses onto a fluorescent phosphorus substance inside the headlamp. In conjunction with the digital high-beam assistant, BMW says dazzling oncoming vehicles is eliminated.

Minister outlines progress made on road safety Michael Woodhouse, Associate Minister of Transport, has outlined progress in improving road safety in parliament. He says Safer Journeys’ measures have included increasing the driving age, lowering blood-alcohol levels for under-20s and repeat offenders to zero, and changing the give-way rule. “The road toll for 2013 was 254, the lowest in more than 60 years,” says Woodhouse. “Although this number is too high, it was 34 per cent lower than four years ago. It’s pleasing 15 to 24-year-olds have a 37 per cent lower road toll than four years ago.”

Association’s dates for annual general meetings The Imported Motor Vehicle Industry Association has given notice of its annual meetings for this year. The AGM for the South Island branch takes place in Christchurch on May 28. The North Island branch meeting is on May 29 in Auckland, with the national AGM to follow. Log onto www.imvia.co.nz for venues, times, agendas, minutes of the 2013 AGM and the chief executive’s annual report.

new cars

Country driving around town

he all-new EcoSport, which Ford says combines the agility, affordability and fuel efficiency of a compact with an SUV’s versatility, has arrived in this country. The marque believes its high driving position, easy manoeuvrability and smart features mean it’s suitable for city streets and rural roads. The EcoSport’s driver-assist systems include hill-launch assist, dynamic stability control and ABS. The in-car connectivity system, Ford SYNC, is standard on the Trend and Titanium variants, and enables drivers to use voice commands to select tunes and make phone calls. The cabin has 20 storage spaces, including a glove box that can keep up to six drinks cans cool. With the rear seats tumbled against the front

Ford’s new EcoSport Titanium

seats, cargo space jumps to 705 litres and they can be split 60-40. The 1.5-litre four-cylinder petrol engine has twin independent variable camshaft timing (Ti-VCT), and delivers peak power of 82kW at 6,300rpm and torque of 142Nm at 4,400rpm.

The Ti-VCT creates a broadened torque curve, which allows the intake valve to be advanced for instant power at low speeds. At high speeds, the intake cam is retarded and higher airflows are available. The engine is mated to Ford’s

PowerShift six-speed automatic transmission for 6.5l/100km. The marque spent 18 months shaping the car’s body to create a drag co-efficient of 0.365. Aerodynamic features include a rise at the end of the hood to eliminate turbulent air, the front being built into the bumper to avoid air recirculation and improve airflow underneath, and a raked A-pillar and tilted side mirrors. The EcoSport’s compact size and electric powerassisted steering with pull-drift compensation assist with parking in tight spaces or making u-turns. Ground clearance is 20cm, while it can wade through 55cm of water. The recommended retail price for the Trend is $29,990 and $32,990 for the Titanium, including GST.

Singing with design VEHICLES WANTED

he all-new Sonata will be launched in New Zealand later this year, with the marque focusing on better performance and safety. Hyundai has increased the use of advanced high-strength steel, which is twice as ridged and 10 per cent lighter than regular steel. This has increased torsional and bending stiffness by more than 40 per cent than its predecessor. The all-new Sonata is the marque’s second model to adopt its “Fluidic Sculpture 2.0 for a more premium look”. The Genesis, which made its world debut in November, was the first model based on this design philosophy. A single-frame hexagonal grille, refined side lines and rear

design work create “a dynamic line from the hood to trunk” and a sportier image, while the longer wheelbase maximises cabin space. Connection in the car’s frame has been strengthened by increasing the use of structure adhesive by more than 10 times and adding dual-member structures in body’s main parts. More hot-stamping components are used and the double-section structure on the B-pillar boosts crash-test safety. The controls are more intuitive and comfort has improved with a more ergonomic cushion design. Kiwi specifications and pricing will be announced closer to the launch in the second half of this year.

Mercedes Benz

toyota

Volkswagen BMw audi lexus Kia

nissan chrysler Jeep dodge

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from the trade and for the trade

Steering rule unfair to ex-pats T

here are inequities in the steering systems rule for immigrants’ vehicles, including returning ex-pats bringing their cars into New Zealand in left-hand-drive (LHD) configuration. When you look at the exhaust emissions and frontal-impact rules, there are provisions in both for vehicles belonging to new migrants and Kiwis coming home. These permit qualifying vehicles in MA, MB, MC and NA classes to be certified for registration while being noncompliant with the rule, but there’s no such provision in the steering systems rule. In category A, the steering systems rule permits specialinterest light vehicles less than 20 years old, MA vehicles made in numbers of less than 20,000 in the year of manufacture, be that a coupe, convertible or high-performance car and only

category F and category produced as LHD. G is for motorcycles with Category B applies sidecars. to light vehicles in A genuine classes MA, MB, MC or immigrant or ex-pat is NA that are more than discriminated against 20 years old. by this rule, whereas the Category C covers intent of the emissions specialist vehicles and frontal-impact rules including those with MALCOLM YORSTON IMVIA membership and is to enable these two dual steering columns technical services manager groups of people to and controls, purposebring their cars with them when built hearses, class MA and MC coming to New Zealand. motorsport vehicles and specialist As it stands, it is ones that are impractical to unconscionable that immigrants convert into right-hand drive. and returning ex-pats are unable Specialist units used to have their family cars registered principally as mobile cranes are also included in category C, as are for use on these shores for the only reason being they are LHD. vehicles operating on self-laying This is especially the case tracks, agricultural tractors, selfwhen there are provisions for propelled harvesting machines other categories of vehicles to be and earth-moving vehicles. registered – and the emissions Category D covers vehicles and frontal-impact rules do operated by diplomats, category provide for them. E is for those exempt from The intent of these rules registration and licensing, former should have been applied to the Crown vehicles are covered in

steering systems rule as well. The steering systems rule should have similar provisions allowing LHD MA, MB, MC and NA class vehicles to be imported by qualifying immigrants and ex-pats, and for them to gain registration here. I recently supported the application of a Kiwi returning from playing rugby in Japan and requested the director of the NZTA to permit him to have his LHD Ford Explorer registered in New Zealand without having to convert it to right-hand drive. Although this is a utility, when applying the test in table A of “classes of a goods vehicle” in the Vehicle Standards Compliance Rule, it is a passenger vehicle because its payload is 344kg. It also has five seats, so the passenger loading at 68kg per person is 340kg leaving 4kg for goods. This means passenger capacity is well in excess of 50 per cent as given in table A of the rule.

Crunching numbers on old vans In a recent column in Autofile, Malcolm Yorston wondered how many Toyota Hiaces have mileages with seven digits and are still in New Zealand’s fleet. According to the Ministry of Transport, there are 46 on the vehicle fleet register with more than one million kilometres on their clocks but only 26 appear to be in current use. There are another 32 with odometer readings between 750,000km and 1,000,000km.

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reating security with Consumer Affairs, Craig Foss. products that protected the Representation was made to hard-earned investments other influential ministers in an effort of everyday people was always to overturn what Protecta believed – the ultimate goal of a Kiwi-owned was a ridiculous law change. insurance innovator. The major concern affecting Protecta Insurance New Zealand dealers and finance companies Ltd was incorporated in 1986 was the removal of commission to provide consumer insurance from warranty, motor vehicle products to the motor industry as it insurance, guaranteed asset moved into an exciting new era. protection insurance and The business, started by consumer credit insurance. managing director, Stephen “Lyn McMorran, FSF executive Glading, strived to be the industry director, was a great help to the leader, and looking after its motor industry, as well as finance and customers and insurance companies their best interests – representing our always remained interests in this issue. imperative. “Lyn aimed for a Until recently successful outcome Protecta was the for the responsible only consumer credit providers, who insurance provider should continue to member in the receive a reasonable Financial Services commission for Stephen Glading, managing director the much-needed Federation (FSF), with their membership dating protection provided to the back to 2003. borrower,” says Glading. As a member of FSF, Protecta Today, Protecta witnesses ensured the automobile industry continually evolving legislative and especially dealers and finance changes that affect the whole companies, have an insurance industry, which result in additional voice within the organisation. costs of compliance. “It is essential to be fully Through the changes the informed of any potential changes Protecta team is regularly trained that may affect the industry and and up-skilled as the company has our customers,” says Glading. become a financial services provider. “For years Protecta has Due to ongoing requirements, represented the industry with best Protecta now has advisers within the intentions of all stakeholders at heart team and invested in a dedicated and have continued to lobby directly trainer and business coach to to government ministers as well as support the national sales team. through our membership of the FSF.” “Our customers take advantage The Credit Contracts and of the knowledge that Protecta Financial Services Law Reform gains and can train business Bill was reported to the industry managers to maximise and towards the end of March. increase their profit potential. Protecta is committed to making “Protecta also continually invests the government and other affected in our online policy quoting and parties aware of the shortcomings purchase system as well as our in the new act where it friendly and professional customer disadvantages dealers and finance service team with an increase in companies, and wrote directly to staff members to handle the growth the Minister of Commerce and in our business.”

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disputes

Tribunal rules damage to car’s bonnet was probably done at dealer’s premises

post-purchas paid by the purchaser, but the tribunal was satisfied the dealer should reimburse the buyer for the headlamp and bonnet. r Vehicle Disputes At: The Motoland . Tribunal, Auck

the trader, its transporter or repairer. It thought if the damage occurred before the car went to have the door repaired, that would have been obvious to Mr Roberts and Warkworth Collision Repairs – and would probably have been seen in the latter’s photos of the vehicle. There was no need for Warkworth Collision Repairs, if the vehicle was damaged in its care, to The tribunal considered a lie about that because it could have reasonable person paying $13,995 cheaply repainted the bonnet. for a low-mileage and four-yearThe tribunal agreed that if old car would expect it to be free the bonnet was damaged before of minor faults. the car went back to the trader It wasn’t, had been previously on November 7, it was hard to been in an accident and had been understand why nobody from the poorly repaired. dealer told Mr Roberts it had been Section 18 of the Consumer received damaged. Guarantees Act (CGA) states that The tribunal thought the when a failure to comply with a bonnet was probably damaged guarantee can be remedied, the while the vehicle was with the buyer must require the supplier to trader and someone working there do so within a reasonable time. tried to cover up the marks before If the trader fails to do so, it went to Liberty Auto Painting. the consumer may have it It ruled against a $305 refund to remedied elsewhere and obtain the buyer for the check and repairs reasonable costs. done by Silverdale Car Services The tribunal was satisfied the because the dealer hadn’t been The TRUSTED online wholesale trading site. buyer required the dealer toautopor fix required to do that work. t.net the faulty headlight, but it failed But the tribunal was satisfied the h e cThames Whangarei t Auckland Hamilton to do so. trader buyer o reimburse theBiggest TaurangadRotorua Gisborne Napieshould r New Plymouth increases/Decreases Wanganui Palmerston North Masterton Wellington By town year-on-year Regarding damage to the for the headlamp and bonnet. Nelson Blenheim Greymouth Whangarei Auckland (OctOber 2013 vs OctOber 2012) Hamilton Thames Tauranga Rotorua Gisborne bonnet, it considered Mr RobertsNapier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin to be “the more credible witness”.Invercargi ll Whangarei Auckland Hamilton Thames Rotorua Gisborne Napier New Plymouth TheNorth dealer The tribunal thought the marksTauranga Wanganui Palmerston Masterton had to pay the buyer Wellington Nelson Blenheim Greymouth Whangarei lton$986 Thames Tauranga immediately. Rotorua probably happened in the care of AucklandoHami c

The finding

Order

try

wanganui gisborne timaru

t o b e r 2 0 13

 27.7%  26.8%  23.7%

PassengeR Vehicle RegistRatiOns

Used

  

7000

7962

6000

5000

Nov ‘12

Oct ‘13

JuL ‘13

SEP ‘13

JuN ‘13

AuG ‘13

MAy ‘13

1000

FEb ‘13

2000

APr ‘13

5000

4000

MAr ‘13

3000

JAN ‘13

6000

Oct Nov Dec y Jun Jul Aug Sep Jan Feb Mar Apr Ma

North Island

4000

FEb ‘13

8545

New

DEC ‘12

Used

7000

JAN ‘13

9000

8000

Nov ‘12

westport Masterton timaru

North IslaNd versus south IslaNd

10000

DEC ‘12

5500

  

Used Vehicle RegistRatiOns

New versus used

CONNECT & ENGAGE 6000

Used

Biggest decreases

new

South Island

JuL ‘13

2012

Blenheim nelson rotorua

SEP ‘13

6500

 100.0%  51.2%  34.1%

JuN ‘13

2013

Biggest increases

new

AuG ‘13

7000

westport thames napier

MAy ‘13

7500

n: It was ruled The decisio e check should be

The dealer obtained a vehicle appraisal the day prior to sale. It recorded the odometer on 29,623km and it being in aboveaverage condition. Around October 21, it was involved in an accident that damaged the driver’s door. Warkworth Collision Repairs discovered it had previously been in a crash that damaged the front bumper and right-front headlight. It said repairs had been poorly done. There were cracks in the radiator assembly support, and broken parts had been plastic welded and glued together. The headlight’s support had been broken off and it was held in place with duct tape. Photos were taken and supplied to the trader with a quote on October 30. The dealer agreed to have the work done, collect the vehicle and supply a loan car. On November 6, Roberts’ husband told the trader it was available and it was collected by Exclusive Towing the next day. The dealer had the car in its care until November 12 when it sent it to Liberty Auto Painting. Mr W Reid, sales and administration officer for the trader, was unsure why it went there. He

vehicle to Silverdale Car Services for a post-purchase check. Its report listed “unusual marks on the top side of the bonnet. It appears someone has rubbed”. It reported the headlamp had an internal fault and the level adjuster wasn’t working, and replaced two bulbs, removed a door panel to secure a detached window switch and unjammed a safety belt. The buyer filed her application on December 16. The dealer made no attempt to contact her to try to mediate the dispute. On January 22, Warkworth Collision Repairs repaired the bonnet and replaced the headlight.

APr ‘13

The case

didn’t provide the invoice and didn’t obtain a copy. Before starting work, the repairer advised Reid there were marks on the bonnet but the buyer was notified about them. He assumed Mr Roberts was aware of the marks, which had been poorly pencil touched before an attempt was made to cut and polish them. The headlight was replaced with one from another car on the trader’s premises. On November 18, Mr Roberts noticed seven marks on the bonnet and the largest was the size of a $2 coin. He spoke to a Geoff Ingram, who worked for the trader, who knew nothing about them and said he would have to speak to Reid. Two days later, Reid denied responsibility for the marks and claimed they must have been there when the car was collected from Warkworth Collision Repairs. Mr Roberts went to Warkworth Collision Repairs, which was adamant the marks weren’t there when the vehicle was collected. It had a photographic record from when it received the car. Mr Roberts emailed the trader. He concluded: “I cannot understand why your staff or panelbeaters wouldn’t consider it necessary to contact the owner to advise there’s damage before starting work. “The fact I wasn’t informed and only discovered it when I came to 10000 the vehicle – accompanied collect with 0 fact the damage has had 950the an attempt at concealment – leaves 0 900 me no choice but to consider the blame 8500 lies in your operation.” Mr Roberts received no response 8000 and on November 27 took the

MAr ‘13

Tracey Roberts bought a 2009 Volkswagen Polo from Vision Auto Sales Ltd on September 25, 2013. She claimed the dealer or its agents damaged the bonnet. She claimed $951 for repairs and $305 for a post-purchase inspection and work. The trader denied the car was damaged in its care.

to the trader during which the buyer claimed the dealer or its agents damaged the bonnet. She wanted to recover $951 for repairs and $305 for a post-purchase inspection.

Aroun

Background

car was returned The case:toArepa ir a headlight

Used imPORt PassengeR Vehicle RegistRatiOns by city

aucklaNd, wellINgtoN, chrIstchurch

18 | www.autofile.co.nz

4500

600

3500 3000

hamIltoN, tauraNga, duNedIN, PalmerstoN North

4320

4000 Auckland

500

Hamilton

disputes

Owner of van fails to reach standard of proof required with faulty engine

 41.7%  20.0%  12.4%

TWO SAILINGS PER MONTH JAPAN TO NZ

6740

Oct ‘13

1805

Hoegh Xiamen V20

Osaka

20 Oct

Nagoya

21 Oct

Sepang Express V9 30 Oct

15 Nov

29 Nov

16 Nov

30 Nov

Yokohama

22 Oct

1 Nov

Auckland

17 Nov

7 Nov

1 Dec

17 Nov

Wellington

4 Dec

13 Nov

19 Dec

23 Nov

Lyttelton

11 Dec

16 Nov

26 Dec

29 Nov

11 Dec

29 Dec

go to www.autofile.co.nz/subscribe for the latest industry news INCLUDING: 

495

Liberty V1

31 Oct

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r Vehicle Disputes At: The Motoland . Tribunal, Auck

The tribunal – in deciding if the vehicle was as durable as a reasonable consumer would regard as acceptable for a 2007 van sold for $13,650 after 95,133km – considered if properly maintained it should go for another 6,370km over six months without major repairs. Accordingly, it decided the van was probably not of acceptable quality within the meaning of section six of the CGA. Section 21 defines circumstances in which a failure to comply with the guarantee of acceptable quality are regarded as being of substantial character. The buyer produced two invoices and a quote to support his claim the failure was substantial. The first one stated the cause of the rough idle when cold “appeared to be an injector fault”. The second referred to “limited live data” and suspected faulty injectors and suction control valve, but Turbo & Diesel failed to provide reasons. Its quote for the injectors and valve was merely a quotation because it contained no test results or technical information to support its suspicions. The tribunal, on its assessor’s

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was unable to amounted to substantial failures because the purchaser failed to prove that was the case to the standard of proof required.

The finding

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The tribunal The decisiorulen:that the faults

Finance

 95.5%  64.9%  52.0%

The buyer had a lubrication service done by Grimmer Motors Ltd on March 5, 2013, at 95,350km. It checked the fuel filter and lines but replaced none, which the tribunal thought was unusual given the vehicle’s lack of a service history. The buyer said the van became hard to start in the mornings during September, idled poorly and misfired. He took it to Grimmer Motors

Turbo & Diesel a report as to what tests had been done – with a copy of the results – to determine if new injector valves were required. It also asked it confirm the van’s odometer reading. Etehadian said he didn’t comply with that request because he believed the quote was sufficient. He said the vehicle had travelled 6,371km since purchase.

advice, understood injector failure was relatively rare in a six-year-old diesel vehicle that had travelled only 101,000km. It also understood injectors may be damaged by water or impurities in diesel fuel, or damaged by a failure to change the fuel filters regularly. However, in the absence of test results – which the buyer could have obtained from a specialist – the tribunal was unable to rule the injectors were faulty or the control valve needed replacing. The poor idle when cold, of which Etehadian complained, could have been caused by other factors. The tribunal was unable to make a finding that the faults were of substantial failure because the buyer didn’t prove that was the case to the standard of proof required. That was namely a balance of probabilities or “more likely than not” that the idle problem was due to damaged injectors and or a faulty suction control valve.

Orders The buyer’s application to reject the Nissan Vanette was dismissed. The trader was ordered to arrange its uplift from Hamilton and to provide the purchaser with17% a loan car while it repaired his vehicle at the dealer’s own cost.

Payment protection

The case

on September 30 when its odometer was on 100,935km. The invoice stated: “Check for cause of rough idle when cold. Test glow plug. Check and clean out throttle body. It appears to be an injector fault.” On October 30, Etehadian took the van to Turbo & Diesel Specialists (Hamilton) Ltd. It suspected problems with the injectors and suction control valve, and said they needed to be replaced to see how the vehicle ran. It supplied a written quotation of $4,531 for four injectors, a suction control valve, labour scanning and sundries. The buyer had Hamilton District Community Law Centre write to the trader on November 5 informing it of the faults and the quote. The letter claimed the vehicle wasn’t of acceptable quality and the faults were “serious”. The trader was told the buyer wanted to reject it and was willing to negotiate the refund of the purchase price. The letter asked for a reply within 14 days but he received no response, so Etehadian filed with the tribunal on December 19. Mr T Sarandov, sales manager, said the trader contacted the buyer “in November or December” and offered to repair the van. But it received an email on January 13, 2014, from Hamilton Community Law Centre saying Etehadian sought to reject the vehicle and if the trader agreed to rejection to get in contact, otherwise the trader should stop contacting the buyer. The tribunal sent a written request to Etehadian before the hearing asking him to obtain from

12% 14% 13%

GAP

Emir Etehadian bought a 2007 Nissan Vanette from Glenfield Wholesale Ltd, trading as Real Wholesale Cars, for $13,650, which included a three-year mechanical breakdown insurance policy. He filed an application against the dealer last year for the cost of a tyre, which bulged soon after he purchased the vehicle on March 2, when it had travelled 95,133km. Etehadian claimed the trader promised to refund him the cost but failed to do so. That matter was resolved when he accepted $500 from the dealer and the tribunal made a consent order. He then claimed the van had serious faults because its fuel injectors and suction control valve needed replacing at a cost of $4,531. Etehadian rejected the vehicle under the Consumer Guarantees Act (CGA) on the basis the failure was substantial and he wanted a refund of the purchase price. The trader said the buyer wasn’t entitled to reject because he hadn’t shown those components needed to be replaced. The dealer had offered and remained willing to repair the van at no cost to Etehadian.

his Nissan Vane faults because its fuel injectors and suction control valve needed replacing at a cost of $4,531. He rejected the van on the grounds these were failures of substantial character.

surance

Background

buyer claimed The case: The tte had serious

22% 9%

The TRUSTED online wholesale trading site.

autoport.net

Biggest Increases/Decreases by town year-on-year

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

(April 2014 vs April 2013) Biggest Increases

New Used Gisborne  46.2% Gisborne  93.3% Timaru  36.7% Nelson  76.6% Westport  33.3% Greymouth  71.4%

New Used Rotorua  26.4% no decreases of used sales Blenheim  22.0% Napier  16.9%

A p ril 2 0 14

Biggest Decreases

Passenger Vehicle Registrations

Used Vehicle Registrations

New versus Used

North Island versus South Island

10000

8000

Used 9501

9000

7496

7000 6000

8000

North Island

5000

7000

4000 New

6000

3000

6150

South Island

2000

5000

2005

Apr ‘14

Feb ‘14

JAN ‘14

DEC ‘13

Nov ‘13

Oct ‘13

Sep ‘13

JUL ‘13

AUG ‘13

Jun ‘13

APr ‘13

Apr ‘14

Feb ‘14

JAN ‘14

DEC ‘13

Nov ‘13

Oct ‘13

Sep ‘13

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

APr ‘13

4000

May ‘13

1000

Used Import Passenger Vehicle Registrations by City

Auckland, Wellington, Christchurch

Hamilton, Tauranga, Dunedin, Palmerston North

5000

4739

4500 4000

Hamilton

500 Auckland

2500 2000 Christchurch

1262

1000

726

Dunedin

255 230

200 Palmerston North

100

Apr ‘14

Feb ‘14

JAN ‘14

DEC ‘13

Nov ‘13

Oct ‘13

Sep ‘13

AUG ‘13

JUL ‘13

Apr ‘14

Feb ‘14

JAN ‘14

DEC ‘13

0 Nov ‘13

Oct ‘13

Sep ‘13

JUL ‘13

Jun ‘13

May ‘13

APr ‘13

AUG ‘13

Wellington

300

Jun ‘13

500

370

Tauranga

APr ‘13

1500

Vehicles sold

400

3000

May ‘13

3500

Vehicles sold

610

600

UK, Japanese and local vehicles. Finance available.

The TRUSTED online wholesale trading site.

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Osaka

18 May

2 Jun

16 Jun

2 Jul

Nagoya

19 May

3 Jun

17 Jun

4 Jul

Yokohama

20 May

4 Jun

18 Jun

5 Jul

Auckland

6 Jun

20 Jun

6 Jul

21 Jul

Wellington

11 Jun

29 Jun

14 Jul

27 Jul

Lyttelton

9 Jun

27 Jun

9 Jul

25 Jul

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www.heiwa-auto.co.nz

Australian imports continue to build

he number of used passenger vehicles crossing the border remained high last month bringing the year-todate total to 42,724. There were 13,109 units imported in April – 1,851 or 16 per cent more than March’s total of 11,258. April’s figure also increased compared to the same month last year by 4,257 vehicles, a massive 48 per cent. Imports from Japan accounted for 95.7 per cent of the total with 12,548 units, followed by Australia on 266 and the United Kingdom on 151. Australia appears to have replaced the United Kingdom as New Zealand’s second option for supply of imported cars. Year-to-date, Australia accounted for 2.3 per cent of the total units imported, up from 1.8 per

cent for the same period last year. Great Britain’s share of the year-to-date market reduced from 2.8 per cent in 2013 to 1.5 per cent during the same period this year. Roger Patterson, a director of Henshaw Quality Cars in Timaru, believes the used import industry in New Zealand will have to face some big issues if and when border controls are lifted in Australia. Patterson is concerned about availability of stock if Australia competes with New Zealand dealers in the Japanese market. He believes increased demand is bound to happen if the Australian government relaxes its ban on the high-volume importation of used vehicles as domestic car manufacturing comes to an end in the lucky country in a few years’ time. “The Australians could be

purchasing 10 times more than us,” he told Autofile. “When they get their legislation in order, they may well end up copying what we did in the past. “This could put pricing pressure on dealers here and it will be another interesting chapter for the industry.” Patterson says the dealership’s turnover last year was its highest since he started in the industry 39 years ago. He had no trouble importing stock and has been dealing with the same import company for more than 15 years. John Cameron, owner of Hutt Wholesale Cars says a lot of dealers are borrowing money to import vehicles. “They haven’t got money behind them and they’re locked

into selling the vehicle just for cash flow,” he says. He says new vehicles are proving to be increasingly competitive against used imports. “The prices are so much closer now, you can get a brand new Suzuki Swift for $20,000 and they’ll often cut that price as well as a finance deal – years ago they would never take a dollar off the price,” Cameron says. “They’re lucky to make $500 from the car now.” Meanwhile, used commercials continued to track upwards last month with 468 being imported, of which 394 were less than 3,500kg. It was the highest month of the year and the best total since November 2013 when there were 510 imports. The year-to-date total is 1,533 units.

Used import passenger vehicle arrivals 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

April Share %

2014 TOTAL

2013 TOTAL

MRkt Share

2012 total

% Total

Australia

208

266

239

266

2.0%

979

385

464

503

638

1990

1.9%

1199

1.6%

Great Britain

209

138

142

151

1.2%

639

664

716

737

791

2908

2.7%

2730

3.7%

8268

8597

10697

12548

95.7%

40110

20148

27869

23072

29695

100784

93.9%

67442

92.6%

Singapore

0.2%

146

0.1%

154

0.2%

Usa

149

104

0.8%

394

266

248

307

384

1205

1.1%

976

1.3%

Other countries

0.1%

251

0.2%

336

0.5%

8809

9100

11258

13109

100.0%

42274

21559

29387

24723

31615

107284

100.0%

72837

100.0%

Japan

Total

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Bread and butter stock sells O

verall there were 65,172 vehicles traded last month, which was down 5,569 or 8.5 per cent on March and also down on April 2013 by 3.2 per cent or 2,029 transactions The average percentage share over the past 12 months for each of the segments measured in this report are; public to trader 18.7 per cent, public to public 56.6 per cent and trader to public 24.7 per cent The share of dealer-to-public transactions dropped last month to 23.7 per cent whereas public to trader and public to public shares increased 18.9 and 57.4 per cent respectively. Lee Shepherd, of Car City Auckland, says: “Trade has been flat-tack.” This is despite Auckland recording a drop in dealer to public trading by 4.4 per cent compared to April 2013.

“All our cars seem to be priced right, the stock mix is different, and we focus on good-grade imports,” Shepherd says. “We have great salespeople too.” The stand-outs for the dealership included the Mazda Atenza, Honda Odyssey, and the Honda Accord Euro RS. He says the dealership offers a $200 client referral fee, which has lifted the number of clients they gain via word-of-mouth. Car City’s finance penetration was around 90 per cent and Shepherd says he can beat the banks, with an interest rate of 13 per cent. Last month Rotorua saw a 12.3 per cent drop in dealer-to-public sales. Bruce Lowe, dealer principal of Rotorua Hyundai, reports April and May as very challenging. “The buyer confidence is just

not in the market at the present time, we have had some very fruitful months and our last financial year was a successful one, but 2014 has not started in the same manner.” He had no trouble securing New Zealand new used stock. “At the moment we have a lot of late model used car stock,” he says. “Our client base is pretty loyal and tend to turn over a new vehicle every three years and that gives us a lot of late model New Zealand new cars.” John Cameron, owner of Hutt Wholesale Cars, has seen the market pick up during May. It comes after a 4.7 per cent drop in Wellington’s trader to public sales last month, compared to April 2013. “You have to place a focus on the bread-and-butter stock, such as

the Nissan Tiida and Mazda Demio.”’ He says with the increasing competition from Turners Auctions, dealers should place an emphasis on high-quality, rather than quantity. “My minimum grade is four, I look for quality rather than price, that won’t cost at this end with regard to panel beating and compliance,” Cameron told Autofile. “A lot of dealers just look for the cheapest stock.” He says this cheaper stock led to a lot of dealers writing misleading descriptions on Trade Me to hide a vehicle’s defects. “Trade Me has made it a pricedriven competition, when we never had that before. “You might have two cars that look the same in the photos that are priced differently – but the photos can hide a lot of things.”

Secondhand car sales - April 2014 Apr '14

Dealer-To-Public Apr '13 +/- %

MARKET SHARE

Apr '14

Public-To-Public Apr '13

+/- %

Apr '14

Public-To-Dealer Apr '13

+/- %

Whangarei

492

526

-6.5

3.19

1675

1603

4.5

248

299

Auckland

5092

5329

-4.4

33.02

12808

13204

-3.0

4372

4221

-17.1 3.6

Hamilton

1262

1361

-7.3

8.18

2959

2898

2.1

1110

1295

-14.3

Thames

181

185

-2.2

1.17

494

413

19.6

2.3

Tauranga

802

782

2.6

5.20

1848

1985

-6.9

600

581

3.3

Rotorua

228

260

-12.3

1.48

659

713

-7.6

107

145

-26.2

Gisborne

151

173

-12.7

0.98

345

343

0.6

104

-17.3 -17.2

Napier

509

550

-7.5

3.30

1326

1328

-0.2

365

441

New Plymouth

423

402

5.2

2.74

922

963

-4.3

259

280

-7.5

Wanganui

173

174

-0.6

1.12

432

433

-0.2

120

159

-24.5 -17.7

Palmerston North

705

761

-7.4

4.57

1455

1523

-4.5

904

1098

Masterton

169

164

3.0

1.10

322

334

-3.6

100

109

-8.3

Wellington

1322

1389

-4.8

8.57

2612

2843

-8.1

1037

1183

-12.3

Nelson

267

332

-19.6

1.73

875

901

-2.9

215

249

-13.7

Blenheim

163

187

-12.8

1.06

332

365

-9.0

123

-19.5 -15.9

Greymouth

-5.4

0.45

156

164

-4.9

Westport

-16.7

0.16

18.4

2100

2086

0.7

13.62

4814

4878

-1.3

1666

1784

-6.6

Timaru

200

230

-13.0

1.30

522

492

6.1

141

150

-6.0

Oamaru

7.7

0.45

204

159

28.3

26.3

Christchurch

Dunedin

610

631

-3.3

3.96

1707

1523

12.1

467

452

3.3

Invercargill

405

376

7.7

2.63

855

920

-7.1

296

314

-5.7

15419

16067

-4.0

100.00

37412

38061

-1.7

12341

13136

-6.1

NZ total

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Passenger Car Sales by Private/Business split - MIA statistics Make

Alfa Romeo

Private

% Private

61.3

2 64

Aston Martin Audi Bentley

Business % Business

Total

38.7

66.7

33.3

40.3

59.7

159

0.0

100.0

BMW

30.7

138

69.3

199

Chery

95.0

5.0

Chrysler

33.3

66.7

Citroen

54.8

45.2

0.0

100.0

Dodge

41.9

58.1

Fiat

55.6

44.4

Ford

111

25.7

321

74.3

432

Daihatsu

Great Wall

61.5

38.5

Holden

234

35.6

424

64.4

658

Honda

102

51.0

49.0

200

Hyundai

179

31.5

389

68.5

568

Jaguar

50.0

Jeep

46.1

53.9

115

Kia

25.2

172

74.8

230

Lamborghini

100.0

0.0

Land Rover

45.3

54.7

Lexus

53.6

46.4

75.0

25.0

198

40.8

287

59.2

485

40.8

59.2

120

75.0

25.0

Mini

43.8

56.3

Maserati Mazda Mercedes-Benz

Mitsubishi

197

59.0

137

41.0

334

Nissan

245

52.4

223

47.6

468

Peugeot

53.3

46.7

Porsche

57.1

42.9

Renault

5.6

94.4

Skoda

31.3

68.7

SsangYong

38.6

61.4

Subaru

28.8

71.2

125

Suzuki

180

58.1

130

41.9

310

Toyota

249

32.5

516

67.5

765

Volkswagen

167

55.3

135

44.7

302

Volvo

40.5

59.5

Other

20.0

80.0

Isuzu Trucks Total

44.4

55.6

2482

40.6

3636

59.4

6118

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

Fresh approach reignites Volvo T

oyota retained its title at the top of the sales ladder last month, but its sales dropped by 284 compared to bumper sales in March. In April, there were 6,118 registrations, of which 3,636 – or 59.4 per cent – were business sales, while 2,482 were private. Of Toyota’s 765 sales, 516 were business – or 67.5 per cent – and April’s total was up 25 per cent compared to the same month last year. Holden’s sales in April came in at 658, with 424 business sales accounting for 62.4 per cent of its total. Rounding up the top three was Hyundai with 568 sales, of which 389 – or 68.5 per cent – were business. Despite comparatively low figures, Volvo’s sales of 37 vehicles last month increased by 67 per cent on April 2013. Steve Kenchington, general manager of Scandinavian Vehicle Distributors, says the marque has recorded 164 registrations to April this year, representing a 61.5 per cent increase compared to the same period last year. Volvo’s share of private sales made up 40.5 per cent of its total on 15 units, while business registrations accounted for the remaining 59.5 per cent on 22. He says traditionally Volvo has appealed to private buyers because of the niche positioning of the product. “We’re a very family-oriented brand,” he says. “The business market is something we would like to increase, but to middle and senior management as opposed to

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significant fleet volume.” This year Volvo doubled its marketing budget, but Kenchington says a variety of factors have led to the marque’s strong performance. “It’s a combination of building confidence in the factory and dealer network, and having the ability to invest in the brand to get the returns,” he says. “All the pieces of the puzzle have been put together.” Volvo also returned to the V8 Supercars series after a 15 year absence, with Scott McLauglin behind the wheel. “The impact of the V8’s from my own personal perspective is that it has hardened the image of the brand, which is something we have always wanted to do,” he told Autofile. No new product has been launched by Volvo this year, but there has been growth across the entire range. Strong performers include the XC90 up by 300 per cent, the XC70 boosting sales by 100 per cent and the V40 up by 27 per cent. “We want to maintain the current run rate and achieve 70 per cent growth by the end of the year, laying the foundation for the new XE90 next year.” Following the XE90’s launch, the entire product range will be replaced over an 18-month period.” Kenchington says there are no plans to expand the dealer network. “We have a huge amount of praise for our dealers who have shown immense loyalty in the past, and we want to reward that loyalty.” “The brand is much better than sales in the past have shown.”

New vehicle sales still ahead N

ew vehicle registrations in April remained strong with 8,729 sales, which was an increase of 7.4 per cent on the same month last year and was the strongest April since 1982. Year-to-date the market is 13.6 per cent – or 4,751units – ahead of this time in 2013. SUVs accounted for 2,610 sales last month, up 16.5 per cent compared to the same month in 2013. Sales of SUVs to rental companies increased by 444 per cent on relatively low numbers, while passenger sales to rental fleets dropped by 12.1 per cent. Total passenger sales also dipped by 3.3 per cent on the same month in 2013, but year-to-date they remain ahead by 6.8 per cent.

Bruce Lowe, dealer principal of Rotorua Hyundai and Isuzu says the passenger market remains incredibly competitive. “It’s a pretty aggressive market place and there are a lot of specials being had,” he says. “As a buyer there would be a fair bit to get your head around with all these manufacturers trying to earn their business.” The number of small cars sold last month was 1,637, which bought the year-to-date total to 8,146, which is 24 per cent ahead of the same time last year. Lowe says Hyundai has seen growth in this segment from sales of the ix35 and the Accent. “The Accent was a bit of a nothing car in the past with the

success of i30, but the facelift changed the current model.” Hyundai will also update two passanger models in its range over the coming month – the Sonata and Genesis. The commercial market continued to return high figures, on 2,258 units in April. With National Fieldays looming in June, Lowe expects the dealership’s Isuzu D-Max sales to grow. “D-Max has been patchy and there haven’t been a lot of leads,” he says. “But May has been our best Isuzu month ever and as Fieldays approaches we’re expecting its share to grow.” In Invercargill, Richard Murrell, dealer principal of Southland Vehicle sales, the franchise for Kia and Isuzu

in Invercargill, says Kia passenger sales have been consistent. “The market down here is split between a third passenger, a third SUV and a third utes,” he told Autofile. “It’s really competitive in each of those segments, so you have to be in all of them. “Our market share is abnormally high for Kia and we’re doing double figures, while Kia has run at about four or five per cent of the market nationally,” Murrell says. Peter ‘PJ’ Johnston, of Auckland SsangYong, says the dealership is fielding huge enquiry for the South Korean newcomer. “We think the commercial market is getting stronger and SsangYong is the fastest-growing brand in New Zealand at the moment.”

NEW VEHICLE MARKET SEGMENTATION - April 2014

NEW VEHICLE SALES BY BUYER TYPE - April 2014 Apr '14

Apr '13

Mth %

2014 YTD

2013 YTD

% YTD

Passenger

3,508

3,626

-3.3

17,337

16,236

6.8

Passenger

3,508

3,626

-3.3

17,337

16,236

6.8

Private

1,453

1,561

-6.9

6,952

6,365

9.2

SUV

2,610

2,241

16.5

11,537

9,508

21.3

Business

1,852

1,790

3.5

8,286

7,589

9.2

Light Commercial

2,258

1,915

17.9

9,125

7,845

16.3

152

217

-30.0

837

853

-1.9

Heavy Commercial

319

294

8.5

1,442

1,077

33.9

-30.6

147

171

-14.0

8,729

8,125

7.4

39,588

34,837

13.6

Light

881

1,147

-23.2

4,576

5,143

-11.0

Small

1,637

1,452

12.7

8,146

6,457

26.2

Medium

506

522

-3.1

2,289

2,368

-3.3

Large

312

317

-1.6

1,465

1,425

2.8

Upper Large

75.0

118

43.9

Gov’t Rental SUV

-12.1

1,262

1,429

-11.7

2,610

2,241

16.5

11,537

9,508

21.3

Private

1,029

945

8.9

4,595

3,682

24.8

Business

1,487

1,241

19.8

6,352

5,392

17.8

Gov’t

-11.1

194

178

9.0

Rental

440.0

396

256

54.7

2,258

1,915

17.9

9,125

7,845

16.3

Light Commercial Private

Apr '14

Other Total market

Apr '13 Mth% diff

2014 YTD

2013 YTD % YTD

484

359

34.8

2,121

1,535

38.2

People Movers

11.1

294

251

17.1

1,636

1,430

14.4

6,551

5,732

14.3

Sports

127

-26.0

449

510

-12.0

Gov’t

101

13.5

348

408

-14.7

SUV Small

Rental

0.0

105

170

-38.2

SUV Medium

8,376

7,782

7.6

37,999

33,589

13.1

SUV Large

Private

2,966

2,865

3.5

13,668

11,582

18.0

Business

4,975

4,461

11.5

21,189

18,713

293

351

-16.5

1,379

1,439

Business

Sub Total

Gov’t Rental

632

456

38.6

2,902

2,070

40.2

1,060

956

10.9

4,504

3,735

20.6

870

796

9.3

3,944

3,553

11.0

SUV Upper Large

45.5

187

150

24.7

13.2

Light Buses

119.0

156

-4.2

Vans

415

350

18.6

1,736

1,704

1.9

Pick Up/Chassis Cab 4x2

737

570

29.3

2,898

2,219

30.6

Pick Up/Chassis Cab 4x4

1,060

974

8.8

4,335

3,846

12.7

319

294

8.5

1,442

1,077

33.9

-30.6

147

171

-14.0

8,729

8,125

7.4

39,588

34,837

13.6

142

105

35.2

1,763

1,855

-5.0

319

294

8.5

1,442

1,077

33.9

Other

-30.6

147

171

-14.0

Total

8,729

8,125

7.4

39,588

34,837

13.6

Heavy Commercial

Heavy Commercial Other Total market

76 105.3

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www.autofile.co.nz | 25

new car stock

Post financial year-end decline average sales per day year-to-date, 242, exceeding performance for the past two years. The predicted total new car sales for 2014 have declined from 92,698 in March to 88,330 – a 4.7 per cent drop. David Foot, Hyundai dealer principal at Brendan Foot Supersite in Wellington says Hyundai has experienced a good start to the year. Supply of Hyundai vehicles was good in recent months and Foot believes it may have been the best it’s ever been. Hyundai sales increased in Wellington for the first few months of 2014 in spite of a number of corporates and head offices moving to Auckland or Australia. This is a welcome turn around after the Wellington market was

flat compared to the growth in Auckland and Christchurch during the past couple of years. “Wellington feels a bit more buoyant with a few new infrastructure projects kicking off and commercial vehicles seem to be selling quite well,” says Foot. The South Korean SUVs are selling extremely well with the ix35 and Santa Fe leading the fleet. The new ix35 Series II is a slightly smaller SUV that has sold well to private buyers, which is good business for the dealerships. Foot doesn’t expect the announcements in the May budget will have much effect on Wellington’s car sales. “The election will probably have more impact, which it normally does in Wellington,” he says. “Sales normally go a bit soft around election time because public servants wait to see what’s going to happen with government.” Kevin Swift recently took up the Mazda sales manager role at South Auckland Motors in Manukau. He says the region feels buoyant for car sales with neighbouring industrial zones and the busy

Dealer stock of new cars in New Zealand Average Days sales per stock day - YTD at hand

26,867 238

104

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 Average Days sales per stock day - YTD at hand

100 xxxxxxxxxxx

40,201

Jan ‘14

6,473

38,381

268

S 144

Feb ‘14

6,729

autoport.net157 6,572

38,538

252

153

7,228

6,150

29,007

Predicted sales for 2014 10000

Aroun

8,251 28,681

88,330

9500

StoCk

VArIANCe

Blenheim 5,026 nelson 7,368 rotorua 7,228

(2,473) 7,499 95.5% 1,735 5,633 64.9%

729 6,499 52.0% 855 5,430

6,285

7,742 Biggest May ‘12 decreases

new

Jul ‘12  27.7%

westport 8,589 Masterton 6,828 timaru

Aug ‘12  26.8% Sep ‘12  23.7%

10,511

242

12,246

223

12,975

218

13,830

209

5,942

1,800

15,630

205

7,142

1,728

17,358

211

1,686

19,044

209

8,870 Used 6,208 7,894

Jun ‘12

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

12,984

2011 MIA stock estimate as at end of December Used

Annual high for stockpile

8,155

 41.7% 2,630 21,674  20.0% 191 21,865 6,637  12.4% 819 22,684

8,953

6,484

7,494 in September. There have been two other major increases during 2013 – with variances between imports and sales of 3,121 in April and 2,507 in May. Graeme Macdonald, chairman of the North Island branch of the Imported Motor Vehicle Industry Association, says the current stockpile should correct itself – as it

other centres. “But 80 per cent of New Zealand’s population is in Auckland and Christchurch. “If you add in Dunedin and Wellington, these centres cover a large proportion of the population and all have strong economies.” Year to date, 77,438 new cars have been imported and 68,612 have been registered to give a variance of 8,826 so far this year. with stock at hand has NovDays '13 Nov '12 +/- %78 in been steadily increasing from

1996, it has ebbed and flowed.” Used car stock levels are traditionally based on what’s happening in Japan and what consumers are buying here. Conditions there have improved recently and the exchange rate has gone up. “October and November are normally difficult for the industry, so the stockpile tends to go up,” says Macdonald. “But trade swings up over Christmas and the holidays, so it goes down. “December and January are good months for sales because people take time off work, the kids are off school and people may have Christmas bonuses or holiday pay. “It’s a time when Kiwis tend to make financial decisions, so dealers need to have plenty of stock to

he amount of stock held by used car dealers during October was the highest monthly total of the year. There were 10,374 units imported last month with a variance of 1,829 on 8,545 sales. The number of cars in stock amounted to 9,323 compared to

hot, SUVs are. “People in the housing market are refinancing their mortgages to buy big-ticket items especially when they are confident about keeping their jobs.” All that said, some of the regional centres, such as Hawke’s Bay and Palmerston North, aren’t showing as much growth as

New Passenger Vehicle Sales

normally does. “If the monthly stockpile was 10,000 on a regular basis it means there are solid holding numbers,” he told Autofile. “North of that and we would be looking at an issue. oversupply Novem ber 2013 “There was good buying in Japan Nov '13 arrival we saw in March, and2013 Mkthigh Mkt Share 2013 total Make May and June. numbers in April,Share “The stockpile occurs more at 23.4% 14670 19.3% Toyota certain times of the year. Since 9.2% the industry in 8102back into I came 10.7%

105

209

105

211

107

25,153

212

119

26,867

211

128

by Make -

138

220

157

222

35,693

226

158

Dec ‘13

ytd total

77,438

68,612

82,380

600

BMw

172

Wellington 20 Subaru

0 Audi Lyttelton

165

163

-0.6

4.2%

10.3

3.9%

7 Nov 240 178

-3.4

2.3%

153

7.8

2.2%

13 Nov

16 Nov 150

8.7

Mercedes-Benz

128

56.1

108

80.0

2.2%

1.7% 1.4%

65 41.5 1.2% DOOR SERVICE 86 49 75.5

AT YOUR BUSINESS? SHOULDN’T WE BE LOOKING INCLUDING Dodge : 64

1.2%

39.1

0.9%

Oct 3661 100

299480 1 Nov

2.7% 17

-15.8

Peugeot

Ssangyong

4.7%31

29.0

312

261

22 Oct

Jeep NG SPACE 92 TARGETED ADVERTISI PORT TO

hamIltoN, tauraNga, duNedIN, PalmerstoN North

4320

8,826

may

9,362

Nov ‘13

1805

310

288

2012

202

apr

Oct ‘13

7,962

Honda

Feb

FEb ‘13

Nov ‘12

Used imPORt PassengeR Vehicle RegistRatiOns by city

34,293

7,272

2013 predicted sales

aucklaNd, wellINgtoN, chrIstchurch

(266)

1,400

7,006

100

Yokohama Volkswagen 80

60 Kia Auckland

154

352760

Nov 256340

1861 23 Nov

1645

29 Nov

4.8%

2.4%

2.2%

1748

2.3%

1398

1.8%

1001

1.3%

16 Nov

Hyundai

3.9%

Jan ‘12 Feb ‘12

Toyota

Holden

2013

171

52.0

267

-15.0

Mar ‘13

May ‘13

98 ‘1387.8 30 Nov Jun

5,395

4,920

6,000

(1,080)

4,315

6,504

6,429

4,390

6,613

5,877

736

5,126

7,693

6,793

900

6,026

6,947

6,184

763

6,789

5,335

6,641

(1,306)

5,483

5,540

6,621

(1,081)

4,402

6,867

5,688

Nov8,486 Mkt Share

(716)

3,68

(1,179)

2,50

3,81

7,1832013 1,303 2013 Mkt total (705) 7,119 Share

6,414

5283

3.9%

3,10

(5,474)

78,311

72,837 8.4%

6.9%

ImportS VArIANCe USed 2521 3.3% SoLd

Imported

StoCk

135

3.0% 1,271 8,852 2235 7,581 2.9% 10,539

2.9%

10,967

2750

2.5% 8,089 1201 8,623

81Jul ‘13 107.4

2.3% 8,635 1338

‘13 Sep 100.0

2.3%7,501 894

Aug ‘13 1 Dec 84

Nov ‘13

319

‘13 Dec-57.7

26 Decytd total

10,374

2.3% 1.8%

-1270 -

3,121

7,418

8,460 3.6%2,507 227 7,862

1.6%

310

1,50

2,77

5,89

8,40

8,62

(1,006)

7,62

8,6481.8% (13) (114) 7,615

7,60

8,545

9,3

9,629

1.2% 1,829

1.7% -

2.7% 6,218 86,2952039 80,077 predicted sales1.8% 201330.1 1469 96,145

134 103 Toyota11 Dec Highlander 118 29 Dec 79 49.4 1.6% 1092 Ford Focus 114 212 -46.2 STATISTICS 1.5% 1429 OF THE NEW AND USED COMMERCIAL SPONSORSHIP Honda JazzIS NOW AVAILABLE BUSINESS 113 FOR76YOUR PAGES 48.7 1.5% 922 Ford Kuga 112 18 522.2brian@autofi 1.5% le.co.nz For all enquiries contact Brian on 021 455 775 or email 952 Mazda Mazda3 109 151 -27.8 1.5% 1537 Toyota Aurion 107

1.0% GENERO US REWARDS 1.0% PROGRA MME 478 775

724

261.3

Oct ‘13 168 19 Dec 131 28.2

Captiva

(3,184)

3.5% 2399 3.2% Total stock at the end of December 2012 Liberty 141 ‘13 69.5 (2,929) 4,468 19897,397 3.2% 2.6% V1 Jan 1,325 6,922 8,247 Feb ‘13

168

2012

8,579 6,375

239 227

168

DecCamry 2013

11enDec Volkswag Golf

260

StoCk

3,191

by Model - Novem 5,506 ber6,222 2013

184

ix35

17 i Nov Mitsubish Lancer

4.6%

3.4%

Mondeo

oct

130

220

34,559

Ford

USed ImportS VArIANCe SoLd

Imported

Total stock at the end of December 2011

Mar ‘12

289

nov

132

220

30,322

4,237

5.8%

always been the w “You can overs buying conditions the marketplace n itself by pulling ba selling down. The drop for a month trundling up agai “There’s no ma miracle. When it’s slow for everybod good supply with rate, everyone be

Dealer stock of used car imports in New Zeal 2012

21829 Nov 254Apr ‘13-14.2

sep

214

28,668

1,654

6,828

272 Oct

JUL

28,159

509

6,769

351

aUG

1,082

7,542

8,423

Aug ‘13 South Island Sep ‘13

Jul ‘13

2013

NovSwift

JUn

6,347

8,051

Jun ‘13

Mitsubishi

Suzuki 15

may

7,429

11,065

May ‘13

120 Nagoya

4436 120

30 Oct

apr

125

5.0%

Feb

216

-7.2

4.4%

mar

27,077

20 Oct 405

3342 140

Days of stock

1,483

376

5.1%

Jan

Apr ‘13

5,908

8.6%Days stock import cars Holden in nZ - UseDCommodo re

160

35.9

Dec

6,800

7,391

115

RAV4

180

oct

6,329

222

6519

nov

223

25,594

LATEST SCHEDULE Toyota 3.7 8.3%

281

Suzuki

sep

26,065

(471)

596

JUL

1,228

618

aUG

5,799

117 Osaka 140

in October. January 1746 to 1311190 46.7 Last year 90,754 units were 685 and there imported 673 were 76,871 1.8 sales for a variance of 13,883.

JUn

7,027

3000

Oct ‘13

JuL ‘13

SEP ‘13

JuN ‘13

AuG ‘13

MAy ‘13

FEb ‘13

APr ‘13

Nov Dec Jun Jul Aug Sep Oct Jan Feb Mar Apr May

Feb ‘13 North Island Mar ‘13

2000 1000

4000

238

Oct ‘13

4000

24,837

JuL ‘13

2012

says Macdonald. “Dealers then jump online to buy more from Japan, but that’s

match demand. Apr ‘12 “When the market’s down in May ‘12 Japan, stock is hard to get. When Jun ‘12 it’s buoyant, you tend to buy what Jul ‘12 you can because you don’t know Aug ‘12 what will be available next time. Sep ‘12 also need to bear in Oct ‘12 “Dealers Model Nov to Nov Nov '12 ‘12 +/- % mind it takes four to six weeks'13 Dec ‘12 from Japan.” get stock Corolla 626 462 300 say ytd total35.5 of Larger operations,

624 -8.3 7.7% Hoegh Xiamen 6695 Sepang 8.8% Morning Express Miracle Mazda 512 Cx-5 5.6 6.9% V95447 V20485 7.2% Toyota V5 yaris 382

Nissan

160

(2,030)

SEP ‘13

2013

180

104

7,385

JuN ‘13

7962

with 30 to 40 cars. “They can suddenly be selling without having bought for a few weeks and being 10-15 units down makes them more susceptible,”

New Passenger Vehicle Sales

- new cars Days stock in nZ572

Mazda Port Calls

26,867

6740

5,355

AuG ‘13

New

5000

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

Jan ‘13

mar

NeW CArS SoLd

Imported

Hyundai

Days of stock

2013

6000

MAy ‘13

8545

7000

1,714

13,883

Total stock at the end of December 2012

6000

4500

6,102

76,871

North IslaNd versus south IslaNd

7000

Used

5000

4000

7,816

90,754

ytd total RegistRatiOns Used Vehicle

8000

26 | www.autofile.co.nz

2,469

Jan

Dec ‘12

7,336

units, are more static with their holding not changing too much. A drop of 50 units may not be too drastic. But stock can vary enormously by proportion on yards

TWO SAILINGS PER MONTH JAPAN TO NZ 76

207

5,959

during 2012. There were 54,404 sales in 2009, 62,029 in 2010, 64,019 in 2011 and 76,871 in 2012, and the MIA is predicting about 82,000 passenger vehicle and SUV sales this year. “We’re looking at about 30,600 Make and we’re on light commercials track for 112,000 or 113,000 new Toyota” vehicle sales overall. Business confidence Holden being high and strong regional Auckland and economies inFord

Christchurch are boosting sales. “Trades people are upgrading their vehicles,” says Crawford. “Although passenger cars aren’t so

www.autofile.co.nz Oct ‘12

10000

MAr ‘13

5500

NeW CArS SoLd

Imported

 100.0% Jan ‘12  51.2% Feb ‘12  34.1% Mar ‘12

New versus used

Nov ‘12

6000

westport thames napier

new

PassengeR Vehicle RegistRatiOns

DEC ‘12

6500

2012)

2012

Biggest increases

Nov ‘12

JAN ‘13

7000

“The industry tends to manage stock levels quite well and does this day in, day out,” he told Autofile. “My data suggests this is a cyclical thing and levels were no higher in previous years, but they

165

wanganui gisborne timaru

9000

7500

242

MAr ‘13

8000

149

DEC ‘12

8500

40 stock2012 for too long.

Biggest increases/Decreases By town year-on-year of new cars in New Zealand - Oct 2013 stock (OctOberDealer 2013 vs OctOber

JAN ‘13

9000

highest of 2013. There were 7,962 sales last month, also this year’s biggest amount, while the variance was 1,400 with 9,362 units imported – the second highest amount after 11,065 imports in August. The total stock figure at the end of December was 20,683 and

Apr ‘12

c t o b e r 2 0 13

did come down after the global financial crisis [GFC]. “Stocking levels then increased again and they respond to the number of new vehicles sold and the rate at which they are sold. “They basically go up when sales go up, but I’m not so sure about the days stock is held for being longer and can’t explain that. “Average sales per day came down during the GFC and before that they were much higher.” If 80,000 vehicles are sold one year and 100,000 are sold the following year, the average sales per day should be higher – and the MIA is expecting more new vehicles to be sold this year than

that dropped to this year’s low of 18,653 in January. David Crawford, chief executive officer of the Motor Industry Association (MIA), says current models aren’t sitting around in

tock levels of new cars have increased every month except one this year, with October’s total of 29,509 being the

254

try

YTD total

Apr ‘14

tAuckland Hamilton37,774 Whangarei(764) Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington 2,101 39,875 Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne (326) Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandoHamilton Thames Tauranga Rotorua

7,992

xxxxxxxxx

JUL

Total stock at the end of December 2013

Mar ‘14

2013

80 manages levels well Industry

SOLD

The TRUSTED online 8,293 wholesale trading(1,820) site.

120

Jun

Imported

Stock

140 2014

May

Variance

NEW CARS

160

APr ‘13

2014

180

APr

Total sales in 2013

Days stock in NZ - New Cars

Dec

24,837

1,228

Nov

(2,030)

5,799

Dec

7,385

7,027

Oct

5,355

Feb ‘13

Sep

Jan ‘13

Mar

Total stock at the end of December 2012

airport sector. “April is financial year end for a lot of people so in March they may have some budget left to be spent and they tend to do that,” says Swift. “In April sales die off because people have spent their budgets for the year and are waiting for the new financial year to begin.” Dealers were affected by holidays in April and in anticipation of the following month being busier – importers may have brought in more cars for May. “As much as we don’t like to say it, New Zealand is quite a small market worldwide and the big manufacturers tend to look after the bigger markets. “It can be quite frustrating when certain model lines are deleted that do well in New Zealand but don’t perform elsewhere in the world. “Our supply of stock is pretty good and we’ve had a new Mazda 3 come on the market, which is a bit ‘skinny’ at the moment because of worldwide demand but we’re still holding our own.” Some clients will change colours or wait a month to get exactly what they want.

AUG

Stock

SOLD

Days of stock

Imported

Feb

Variance

NEW CARS

2013

JAN

ew cars didn’t race out of showrooms quite as quickly in April, with sales decreasing by 23 per cent in comparison to March, but more new cars were imported. In April 8,251 new cars arrived at New Zealand ports, whereas 6,150 new vehicles were registered. The variance has come some way to addressing the high demand for new cars that outstripped supply for the first quarter of 2014. For the past few years the number of new cars sold in April has dropped in comparison to March – that is by -16.5 per cent and -13.1 per cent in 2012 and 2013, respectively. Nationally total sales continue to look better for 2014 with the

1.9%

1.4% 1.9% 1.2% 1.3% 2.0%

7,4

used car stock

Used stock at two year high market,” Johnston told Autofile. “There has been a large increase in the number of motor vehicle traders and we have seen huge numbers of cars cross the border. We believe the market is coming into a glut situation.” “We have seen trends like these before – what happens is you see a huge influx of stock being imported like this – then things get tough and dealers start discounting stock to get cash flow.” Johnston says inexperienced younger traders are behind the ongoing surges. John Cameron, of Hutt Wholesale Motors, says increase in stock held last month was caused by Easter, Anzac weekend, and the school holidays, all taking place during April. “There is too much stock being imported, dealers are going to get burnt,” Cameron told Autofile. “I remember this happening between 2006 and 2007 – the yen was 90 odd, then it dropped back to 42 – a lot of dealers went out of business. There’s a lot of stock around because of the yen being so high. A lot of dealers are fools to themselves and

overstretch, thinking they are going to make a quick buck. ” “The compliance shop here is full with vehicles, and it’s taking six weeks to bring stock over from Japan.” Despite this, Cameron believes the amount of stock being imported will slow down during the winter months. He says Kiwi traders' margins have taken massive hits. “The yen is so high and that will bring in traders thinking they are going to make a lot of money. I’ve seen a lot of dealers come and go.” he says. “Many of them are selling the lower-grade cars on Trade Me, making between $400 and $500 per car. “We’re lucky to make $1,000 dollars per car. GST is a lot higher and

Dealer stock of imported used cars in New Zealand

8500

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

8000

0.7

7500

9,629

(1,020)

7,398

261

Aug ‘13

8,632

8,648

(16)

7,382

263

Sep ‘13

7,481

7,615

(134)

7,248

262

10,364

8,545

1,819

9,067

263

11,184 9,360 1,824 10,891 41 al hi Annu s well 268 level manages Industry10,067 9,534 533 11,424 271 42

except one this year, with October’s total of 29,509 being the highest of 2013. There were 7,962 sales last month, also this year’s biggest amount, while the variance was 1,400 with 9,362 units imported – the second highest amount after 11,065 imports in August. The total stock figure at the end of December was 20,683 and

that dropped to this year’s low of

did come down after the global

officer of the Motor Industry Association (MIA), says current models aren’t sitting around in

again and they respond to the number of new vehicles sold and the rate at which they are sold. “They basically go up when sales go up, but I’m not so sure about the days stock is held for being longer and can’t explain that. “Average sales per day came down during the GFC and before that they were much higher.” If 80,000 vehicles are sold one year and 100,000 are sold the following year, the average sales per day should be higher – and the MIA is expecting more new vehicles to be sold this year than

financial crisis [GFC]. 8,319 18,653 in January. 107,290 98,971 “Stocking levels then increased David Crawford, chief executive

USED IMPORTS

stock for too long. “The industry tends to manage stock levels quite well and does this day in, day out,” he told Autofile. “My data suggests this is a cyclical thing and levels were no higher in previous years, but they

Imported

Dec

Nov

Oct

Sep

AUG

JUL

Jan ‘14

Dealer stock of new cars in New Zealand - Oct 2013

8,807

Feb ‘14

2012

Mar ‘14

Jan ‘12

5,026

7,499

(2,473)

Feb ‘12

7,368

5,633

1,735

Mar ‘12

7,228

6,499

729

Apr ‘12

6,285

5,430

855

May ‘12

7,742

5,942

Jun ‘12

8,870

7,142

Jul ‘12

7,894

6,208

8,589

5,959

6,828

6,637

8,155

7,336

8,953

6,484

2,469

25,153

212

119

7,816

6,102

1,714

26,867

211

128

90,754

76,871

13,883

Used

NeW CArS SoLd

Imported

Oct ‘12

westport Masterton timaru

Dec ‘12  41.7%ytd total  20.0%  12.4%

2013

Used Vehicle RegistRatiOns

North IslaNd versus south IslaNd 7000 6740

Used 8545

8000

New

7962

6000 5000

9,155

12,984 10,511

242

12,246

223

12,975

218

13,830

13,109

209

1,800

15,630

205

1,728

17,358

211

1,686

19,044

209

2,630

21,674

207

191

21,865

209

105

819

22,684

211

107

(55)

during 2012.

11,258 42,274

NeW CArS SoLd

Imported

There were 54,404 sales in 10,247 in 2011 62,029 in 2010, 64,019 1,011 2009,

and 76,871 in 2012, and the MIA is predicting about 82,000 passenger vehicle and SUV sales this year. “We’re looking at about 30,600 light commercials and we’re on track for 112,000 or 113,000 new vehicle sales overall.” Business confidence being high and strong regional economies in Auckland and

9,501

3,608

38,373

3,901

105

116,718

Average Days sales per stock 7,494 in September. day - YTD atThere hand have been two other

11,424

other centres. “But 80 per cent of New Zealand’s population is in Auckland and

10,767

Christchurch. “If you add in Dunedin and Wellington, these centres cover a large proportion of the population and all have strong economies.” Year to date, 77,438 new cars have been imported and 68,612 have been registered to give a variance of 8,826 so far this year. Days with stock at hand has been steadily increasing from 78 in

305

10,712

316

11,723

321

15,331

320

major increases during 2013 – with variances between imports and sales of 3,121 in April and 2,507 in May. Graeme Macdonald, chairman of the North Island branch of the Imported Motor Vehicle Industry Association, says the current stockpile should correct itself – as it normally does. “If the monthly stockpile was 10,000 on a regular basis it means there are solid holding numbers,” he told Autofile. “North of that and we would be looking at an

January to 131 in October. Last year 90,754 units were imported and there were 76,871 sales for a variance of 13,883.

34 37

oversupply issue. “There was good buying in Japan in March, and we saw high arrival numbers in April, May and June. “The stockpile occurs more at certain times of the year. Since I came back into the industry in

5,355

7,385

(2,030)

24,837

Feb ‘13

7,027

5,799

Port Calls 6,800 6,329

1,228

26,065

Mar ‘13

(471)

25,594

Apr ‘13

7,391

5,908

1,483

27,077

May ‘13

7,429

Osaka 6,347

1,082

28,159

7,542

509

28,668

Nagoya6,769

1,654

30,322

7,272 Yokohama

4,237

34,559

(266)

34,293

7,962

1,400

35,693

8,051

Jul ‘13

8,423

Aug ‘13

11,065

Sep ‘13

7,006

Oct ‘13

Auckland -

238

104

223

117

214

132

220

138

LATEST SCHEDULE

20 130 220 Oct 21 Oct157 220

100

Morning Miracle V5

31 Oct

Liberty V1

2013

30 Oct

2012

ma ne ma

Jap it’s yo wh

m ge

160

140 Hoegh Xiamen Sepang Express 115 222 120 V20125 216 V9

goo peo are Ch

180

26,867

nor so t up,” swi hol

Days stock in nZ - Use

Days stock in nZ - new cars

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

Jan ‘13

Jun ‘13

North Island

(663)

Stock

199 U trad hap con Con rece has

TWO SAILINGS PER MONTH JAPAN TO NZ

Nov ‘12

Used

9,100

MIA stock estimate as at end of December 2011

 95.5%Aug ‘12  64.9% Sep ‘12  52.0%

9,470

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

Variance

SOLD

Christchurch are boosting sales. “Trades people are upgrading their vehicles,” says Crawford. “Although passenger cars aren’t so

140 120 100

15 Nov

29 Nov

16 Nov

30 Nov

Industry news and analysis as it happens850 5500

Nov Dec Jun Jul Aug Sep Oct Jan Feb Mar Apr May

Used imPORt PassengeR Vehicle RegistRatiOns by city

aucklaNd, wellINgtoN, chrIstchurch 4500

600

Auckland

500 400

Dec ‘13

Wellington 68,612

77,438

ytd total

82,380

2013 predicted sales

Lyttelton

8,826

226

158

7 -Nov -

13 Nov

16 Nov

1 Nov

17 Nov

1 Dec

17 Nov

4 Dec

19 Dec

23 Nov

11 Dec

29 Nov

26 Dec

Make Hamilton

Toyota Holden

Nov '13

Nov '12

1746

1190

495 685

673

201

11 Dec

29 Dec by Model - November 2013 New Passenger Vehicle Sales November 2013 2013 2013 Mkt by Make - TARGETE Nov Mkt SING NovSPACE Share D ADVERTI New Passenger Vehicle Sales Share total '13 Nov '12 +/- % Model 2013 Mkt

hamIltoN, tauraNga, duNedIN, PalmerstoN North

4320

4000 3500

9,362

Nov ‘13

Make Nov '13 TO 2013 totalDOOR PORT Share 6.9% SERVICE 8.4% 5283 GENERO Mkt Share 35.5 REWARD BUSINESS? AT YOUR 462 US LOOKING S 626 SHOULDN’T WE BE Toyota Corolla www.autofile.co.nz | 27 INCLUDING : 3.3% 19.3% 14670 PROGRA 3.9% 2521 23.4% 261.3 46.7 80 MME 289 RAV4

+/- %

10.7%  Border 8102 inspection 1.8 MPI9.2%

26 | www.autofile.co.nz

Toyota

Holden

Commodore

JUn

1805

1000

4000

3000

South Island

apr

2000

may

2012

5000

222 22 Oct154

Feb

3000

6,828

Jan

6000

4000

mar

6000

2013

Dec

6500

7000

oct

8,609

nov

Jul ‘13

sep

252

JUL

8,418

aUG

JUn

263

7,862

apr

323

7,919

may

Jun ‘13

Feb

262

250

Jan

263

244

8,361

mar

494

5,876

2,485

Oct ‘13

3,113

8,460

JuL ‘13

261

7,418

10,945

SEP ‘13

252

10,531

May ‘13

AuG ‘13

 27.7%  26.8%  23.7%

APr ‘13

Apr ‘13

Predicted sales for 2014

JuN ‘13

250

Blenheim nelson rotorua

MAy ‘13

7000

new

FEb ‘13

243

Biggest decreases

MAr ‘13

244

2,763

YTD total

 100.0%  51.2%  34.1%

New versus used

10000

Nov ‘12

243

1,264

Biggest increases

new

DEC ‘12

243

7,581

Total stock at the end of December 2012

Oct ‘13

239

8,845

Apr ‘14

westport thames napier

PassengeR Vehicle RegistRatiOns

9000

Mar ‘13

xxxxxxxxxxx

0.7

Days of stock

243

(OctOber 2013 vs OctOber 2012)

JAN ‘13

JuL ‘13

850 wds 12

239

1,499

Biggest increases/Decreases By town year-on-year

wanganui gisborne timaru

c t o b e r 2 0 13

9000

SEP ‘13

215

JuN ‘13

9500

AuG ‘13

213

MAy ‘13

211

FEb ‘13

209

Nov ‘12

210

APr ‘13

209

MAr ‘13

DEC ‘12

JAN ‘13

208

May

10000

APr

Mar

208

Feb

206

JAN

209

try

210

206

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 Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandoHamilton Thames Tauranga Rotorua

2014

0 2013

175

1,324

Total stock at the end of December 2013

The TRUSTED online wholesale trading site.

autoport.net

AJunr o u n

Days of stock

(2,930)

6,922

2014

aland - Oct 2013

7,397

tock levels of new cars have

100

3105

8,246

every month Total salesincreased in 2013

120

Average Days sales per stock day - YTD at hand

4,467

Dec ‘13

20 2012

Stock

Feb ‘13

Nov ‘13

140

Variance

SOLD

Jan ‘13

Oct ‘13

160

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

Imported

Total stock at the end of December 2012

180

USED IMPORTS

2013

Days stock in NZ - Used Import Cars

way. supply when s are good, but normally corrects ack from Japan or e numbers might or two before in. agic supply-chain slow, it tends to be dy. If you can get h a good exchange enefits.”

mechanical repairs are costing more.” Cameron, who has been a dealer since the ’70s attributes this to Turner’s Auctions focus on the retail market. Johnny Feeney, sales consultant at Nigel Thompson Motor Company, says a glut is not evident in the Christchurch market, with stock usually selling within seven days. “We’re not noticing the drop at all to be honest. We’re bringing about 100 cars per month and are seeing good sales numbers.” He says the high volume of stock the dealership was importing meant dropping margins weren’t too much of an issue. “The market is still looking strong heading into winter and we have lots of imports coming over.”

Days of stock

he number of used imported cars sold in New Zealand dropped compared to the amount of units crossing the border in April. The 13,109 imports last month stacked up against 9,501 registrations and the differences of 3,608 meant there were 15,331 units in stock at the start of this month. This was the highest amount of used vehicles in stock for more than two years, with stock increasing by 30.7 per cent compared to the previous month. The year-to-date total for imports is 42,280 with 38,373 first time registrations – a variance of 3,907. The average sales per day now stand at 320, decreasing by one vehicle compared to March. The number of days’ stock in hand increased by 11 last month to 48 from 37 the previous month, making it the highest total for many months. Peter ‘PJ’ Johnston, managing director of GVI in Penrose, Auckland, believes there is too much stock being imported. “We’re selling about 150 cars a month, but in saying that we feel there’s an oversupply in the

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