Autofile 21oct online

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

Issue 19-2015 21 October 2015

Association welcomes review of certification A

report into the review of New Zealand’s low-volume vehicle (LVV) certification system is expected to be released next month. The investigation has been initiated by the NZTA and undertaken by Standards NZ. Craig Foss, the Associate Minister for Transport, has welcomed the review for vehicles built from scratch or modified for specialised purposes. “The LVV certification process is about ensuring these vehicles are safe to be on the road,” he says. The review started in July with a scoping phase. This involved

working with the automotive industry, certifiers and others to better understand the strengths of the current system and potential improvements. “Standards NZ brings an independent perspective to this review,” adds Foss, who is pleased it has sought feedback from a wide range of people. “I’m keen to ensure our LVV certification system enables innovators to utilise new technologies and create opportunities.” The government requires all vehicles to meet safety

requirements. Once one is modified from its original state or scratchbuilt, there needs to be a method of ensuring continued compliance. The LVV system aims to ensure all modified production vehicles – whether altered for commercial, passenger, disability, recreational, leisure, sporting or compliance purposes – and those that are scratch-built are safe to be on the road. They also need to comply as closely as practicable with legal safety requirements applicable to mass-produced vehicles. The process is overseen by the

In this issue p11 Latest on bids for MTF p12 Developments with ITS p15 Evolution of technology p16 Nelson under spotlight p18 First woman for series p19 Top two utes do battle

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Emissions cheating recalls increase Plugged in for

V

olkswagen New Zealand has confirmed about 1,000 more of its vehicles on Kiwi roads are affected by the global diesel-engine emissions scandal. It says seven per cent of around 75,000 units in this country are now caught up in the “software discrepancy”. Autofile previously reported 4,639 units fitted with 1.6 and two-litre

four-cylinder TDi powerplants were known to be affected by October 7. In an update issued on October 12, Volkswagen NZ confirms the total number of vehicles, which will have to be recalled for remedial action, now stands at 5,548. It says the software in question “causes discrepancies in values for oxides of nitrogen [NOx] during emission testing in

their type EA189 engines”. The affected models have been fitted with so-called defeat devices with about 11 million units affected worldwide. “The operation of affected vehicles is not impaired and they can be used as usual without restrictions,” says Tom Ruddenklau, general manager of Volkswagen NZ. [continued on page 8]

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Taking trip down memory lane According to the latest global estimates, almost 60m vehicles have been recalled because of faults in Takata airbags, which need replacing. They can inflate too quickly and explode, sending metal shrapnel into drivers and passengers. The systems have been blamed for causing eight deaths and more than 100 injuries. All of this is a far cry from when Chrysler’s Airflow was introduced in 1934. It was billed as one of the most aerodynamic cars ever built. Its radical streamlined design ensured it stood out from the crowd. But GM was furious Chrysler – a much smaller marque – had manufactured a more advanced vehicle than it could. It took out newspaper adverts in retaliation, which claimed the Airflow had been plagiarised from a top-secret GM design, which never surfaced, and was a danger on the roads. Chrysler responded by releasing a newsreel emphasising the Airflow’s advanced suspension by shooting out a tyre at high speed. The film also highlighted its use of safety glass by having a pitcher throw a baseball at it, rolling it over, and sending it down a 33-metre cliff before driving it away without so much as a shattered window. The Airflow’s uni-body construction – a method still used today – was all steel when most cars used wood. It offered almost modern safety during an era when low-speed accidents were life-threatening. However, GM’s smear campaign was successful. The company faced no sanction for its actions and Airflow was discontinued in 1937. How times have changed. But one thing is sure and that’s the Volkswagen scandal is far from over with its wider implications being felt around the world. Darren Risby, editor

Editor

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

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

Cameron Carpenter cameron@autofile.co.nz Designer

Adrian Payne arpayne@gmail.com

Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. Back copies are also available on the website. Copyright: Published twice monthly by 4Media Ltd, PO Box 6222, Dunedin 9059. All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without written permission, whether by copying or any other means, is strictly forbidden. All rights reserved. ISSN 0112-3475 (print) ISSN 2350-3181 (online)

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any column inches have been filled around the world on the Volkswagen Group’s emissions-cheating scandal. Amidst everything that has come to light is something remarkable – and that’s the company blaming a few engineers for installing defeat devices without their bosses’ knowledge. With Volkswagen announcing some 11 million vehicles will have to be recalled globally, it has joined the industry’s hall of shame of the past three decades. Here are some of the lowlights. At least 27 people died in the 1970s due to fuel tanks in the Ford Pinto being installed in the wrong place. In some cases, they exploded after rear-end collisions. More than 1.5m units were called back. About 6.5m Firestone tyres were recalled in 2000 because they could shred or blow out. Most were fitted on Ford SUVs and pick-up trucks. In 2001, the authorities received 271 reports of deaths and 800 injuries connected to them. Toyota paid US$1.2 billion – or about NZ$1.8b – in a settlement in 2014 after admitting it hid information about defects that caused its and Lexus’ vehicles to accelerate unexpectedly. The company called back around 10m units from 2009 onwards for several issues, such as faulty brakes, sticky gas pedals and problematic floor mats. Faulty ignitions made by General Motors (GM) have been linked to at least 169 deaths. The switches could slip out of their run positions and turn off engines while driving. It recently agreed to pay about US$900m to settle an investigation. GM admitted some employees knew about the problem for around a decade, but cars equipped with the switches were only recalled last year.

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news [continued from page 1]

Feedback from survey ‘supportive’ Low-Volume Vehicle Technical Association (LVVTA), which – among other things – creates standards to which these vehicles are inspected, provides training and support to the LVV certifiers, and produces LVV plates. “The survey process has been completed and we understand the matter is now going back to the minister,” Tony Johnson, chief executive officer of the LVVTA, told Autofile. “We expect to be informed of the results in the next few weeks. We have heard nothing official other than numbers involved in the survey, and that the feedback has been good and supportive of what the association does.” Johnson believes the review’s outcome may provide opportunities to make further improvements to the system, which has been in operation since 1992.

whether it wants the bar raised, left He says the LVVTA has had a long as it is or lowered, it needs to look and solid relationship with the NZTA into how the system is working and and its predecessors going back to its provide feedback to the LVVTA. initial development, which “The NZTA wants started in 1989. to ensure various Johnson adds aspects of the it is healthy The LVVTA creates standards to LVV process are for the which vehicles are inspected. It also produces LVV plates, which numbered working well agency to 6,643 in 2014. for everyone periodically Based in Porirua, Wellington, it has eight involved with review permanent staff and about 60 certifiers it – that it is systems around the country. It also creates responsive operating information sheets, issues modification and relevant, in New declarations, tests and issues alerts for after-market parts, and has and technical Zealand, a technical advisory requirements are which include committee. robust.” warrants and Johnson recognises the certificates of fitness, and system hasn’t been reviewed by the heavy, repair and entry certification. NZTA or its predecessors for some “Additionally, the LVVTA needs to time, and it’s important the LVVTA have confidence that it’s providing understands what is expected of it the level of technical rigour and with both parties’ thinking being LVV-certifier performance oversight clearly aligned. the NZTA requires,” he says. “The association will continue “In order for the agency to know

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to take its responsibilities seriously, remain vigilant and do everything it can to allow enthusiasts and the industry to continue to modify and build vehicles within safe and sensible engineering parameters,” he says.

DEVELOPMENT OF SYSTEM The LVV certification system has been developed over 25 years with the involvement of many technical experts. A wide range of input has been necessary because of the level of complexity and diversity involved in certifying modified and scratchbuilt vehicles. As an example, Johnson cites LVV Standard 45-60 for disability transportation systems, which was developed over eight years. Its consultation process included nine draft documents, five industry working group meetings 


news t and input from about 300 people in the disability sector. These included modifiers, builders, importers, occupational therapists, health and medical specialists, users, engineers, the LVVTA’s technical committee and staff, and officials from four government agencies. “It can be easily overlooked that the certification system does more than developing technical requirements and overviewing the inspection process,” says Johnson. “The LVVTA applies resources into areas including product and component assessment, component testing, publicising safety problems and risks, and providing technical support to users and industry groups, including NZ Police’s serious crash unit. “One of the association’s current projects is designing and constructing a cyclic test rig to assess the durability of critical aftermarket automotive components.” He says the LVV certification system has been designed to be

flexible and evolve as trends change and new technologies emerge. “That said, most of the public expects if people are allowed to modify vehicles that there’s a robust system to ensure the highest practical level of safety is incorporated,” says Johnson. “Our experience shows many members of the modification industry do a good job. The quality

an easy path in the short term, but fails in the long term.” Johnson says this has resulted in the heavily safety-focused standards developed by the LVVTA and co-signed by the NZTA over the past two-and-a-half decades. For example, in 2006, the NZTA’s predecessor Land Transport New Zealand requested the association adopt an in-house auditing regime to

from reviewing the LVV system. “I have no doubt the NZTA will find various systems and processes developed and implemented will not only meet but exceed what it has asked and expected of us. “The system is generally recognised as world-leading – from the point of view of the regulator, and that of enthusiasts and industry users. “The review should get some

“Quality players in the industry don’t want to see others taking short cuts and putting people’s lives at risk.” – Tony Johnson, LVVTA

players in the industry don’t want to see others taking short cuts and putting people’s lives at risk.” Continuous improvement is something the LVVTA has “genuinely strived for and has consistently achieved”. “It’s better to have a system that demands a high level of safety than a weak system that may provide

enable technical and administrative scrutiny to be applied to the documents provided by certifiers when they apply for LVV plates. Three years later, an errorrecording system was implemented to cover certifiers’ work following a request to do so by the NZTA. Johnson is confident the agency will be pleased with what it learns

thinking and discussion going. Any ideas or opportunities to build on what we have, and make it more user-friendly and relevant without compromising safety, is always welcomed.”

WORKING WITH AGENCY The Imported Motor Vehicle Industry Association (IMVIA) has [continued on page 6]

Ensuring on-road safety All safety-related motor-vehicle requirements and national certification processes are governed by the Land Transport Vehicle Compliance Rule. This states if any vehicle is classed as low volume due to origin or modifications then it must be certified according to the low-volume vehicle code. This document has been agreed between the LVVTA and government, and sets out the legal framework on the treatment of modified vehicles. The code is amended from time to time in consultation with and approved by the NZTA, while its standards are legally empowered. The LVVTA’s technical advisory committee (TAC) provides expert direction on the certification system with an NZTA representative sitting on it. The association’s approvals cover hobby-based builds through to component

approvals for manufacturers and importers in the automotive industry. None waive legal requirements for a vehicle to be LVV-certified, but provide simplified processes. Items passed by the LVVTA must be made and supplied as described on the certificate, which is approved by the TAC. Any design variation has to be reassessed and passed or the original approval is void. A type-approval application is used when a business or organisation wants to sell or supply a product or assembly that’s required to be individually assessed by the TAC. Component applications have to be made to sell or supply products or assemblies that fail to meet one or more of the LVV technical requirements. The design approval process is for scratch-built or substantially modified vehicles.

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5


news [continued from page 5]

Imports affected by certification made a submission on the review of the LVVTA and part of this has been to put forward issues raised by some members. Malcolm Yorston, technical services and membership manager, says: “The LVVTA was set up in the 1990s and hasn’t really been reviewed since then, and it should have been to ensure everything is on track. “There may be some fine-tuning and adjustments made to the LVV system to reduce any exposure the NZTA may have.” The IMVIA is working with the agency in regards to regulations overhauled in the European Union (EU) about 18 months ago. These rules provided national standards and guidelines to be adhered to for some vehicles to be imported into New Zealand. “The UK, for example, has national type and single

Europe by designated vehicle approvals, inspection companies, and the changes such as the Vehicle affected secondary Certification Agency in manufacturers,” the UK, and TUV SUD, explains Yorston. DEKRA and others on “These are people the EU’s mainland. or companies that, for After approvals example, take a station are authorised and wagon and convert it signed off in this into a hearse or adapt Malcolm Yorston, of the IMVIA way, secondary a van for use as a manufacturers are disability vehicle. issued with compliance plates “These secondary manufacturers are now required to in addition to statutory plates obtained by OEMs. work with the original equipment “These vehicles, with the manufacturer [OEM] to ensure exception of campervans, still have they comply with OEM standards to comply with LVV requirements for systems and componentry. in New Zealand and we feel this is “They also have to ensure inappropriate,” says Yorston. everything is done correctly and “We now have a situation still complies with the original with these vehicles’ makers certification and approval issued having to jump through hoops in an EU member state for that in Europe and then go through particular vehicle.” requirements in this country as These certifications are issued in well to get another plate here. “The IMVIA is working with the NZTA on this matter and hopes to have a response soon on what will happen going forward, but this is something that needs to be sorted out.” A similar situation exists when low-volume vehicles of this kind are imported from Japan. “More research is needed into disability vehicles, for example,

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coming in from that country to indicate if a product has been made in accordance with the OEM’s specifications,” says Yorston. “If a vehicle is fitted by the OEM with a passenger seat that swings out for someone in a wheelchair to use that’s compliant with the OEM specifications and has a katashiki [TDN] number on the export certificate so it meets Japanese standards, then it should be accepted here. “Some may have been remanufactured outside the OEM’s control. More research is needed on these to ensure the robustness of remanufacturing processes to assess if a case can be made for them to be permitted entry into New Zealand without further certification of modifications.” The Motor Trade Association (MTA) says it enjoys a strong working relationship with the LVVTA. It replied to the review’s online survey, and forwarded it to its committees and branches for their own responses. “The MTA supports periodic reviews of all NZTA certification processes to ensure they are fit for purpose and continue to achieve the desired outcomes,” says Graeme Swan, sector specialist – repair. “We await the detailed findings and recommendations.”

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news

Airbag call-backs blow out M

ore Toyotas in New Zealand are being recalled as part of the global Takata airbag fiasco with 7,340 vehicles being identified. In May, the distributor in this country reported up to 40,000 vehicles were being called back as part of the marque’s worldwide safety campaign. The additional models covered are the Yaris, Corolla, Avensis and Picnic. Owners will get letters from Toyota NZ with parts being made available and the airbags repaired. The company says there have been no reported related incidents in this country or elsewhere because of the faults. More than six million Toyotas have now been recalled across the world because of faulty Takata airbags. The global total for all manufacturers is approaching 60 million with BMW, Daimler Trucks, Ferrari, Fiat Chrysler, Ford, General

Motors, Honda, Mazda, Mitsubishi, Nissan and Subaru also affected. The National Highway Traffic Safety Administration has warned recalls in the US may spread to Mercedes-Benz, Jaguar, Land Rover, Suzuki, Tesla, Volvo Trucks, Volkswagen and Spartan Motors. General Motors has uncovered a smaller number of its 2015 vehicles with faulty side-airbag inflators, which could rupture. About 400 Chevrolet Equinox, Malibu and Camaro vehicles, as well as the Buick LaCrosse, Cadillac XTS and GMC Terrain are affected. Also, more than 419,000 Kia Sorentos from 2011-13 have been recalled in North America and Canada because of defective gear-shift levers. The marque says their transmissions can move out of park when the driver’s foot isn’t on the brake.

Off-roaders flagged Polaris is recalling about 53,000 RZR recreational off-road vehicles sold in New Zealand between July 2014 and August 2015. Their fuel tanks’ vent lines can be misrouted and get pinched, which can cause the tanks to pressurise and leak. There have so far been four reports of 900s with leaks and of two catching fire, and 25 leaks in

XP 1000s and XP4 1000s. Other RZR models being recalled include the S 900, 900 XC and 4 900. Also, about 240 Can-Ams have been called back. The 2015 and 2016 youth model TMDS 90TM and DS 90TMX sold nationwide from May to September 2015 are affected. Their engines have fuel-filter problems that may cause them to break and leak. So far, there have been eight reports of such incidents at dealerships.

The Polaris RZR XP 1000

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And Hyundai is recalling 27,700 Elantras and Sonatas in the US because salt damage may cause their front coil springs to fracture.

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news [continued from page 1]

Timescale issued for recalls The marque is in the process of contacting affected customers and informing them of the next steps. A vehicle identification number look-up is available online at www.volkswagen.co.nz. “Volkswagen in Germany is working as quickly as possible to find a technical solution and, once that is known, customers will be informed of the action plan to remedy their vehicles,” adds Ruddenklau. “While Volkswagen NZ did not know about the software discrepancy, we would like to apologise for what has happened. “We value the trust our customers place in us and will be in contact with them as soon as a solution is identified. We continue to work with the NZTA to clarify used imports.” Volkswagen-branded vehicles affected in New Zealand include 2,222 Tiguans, 1,433 Passats, 874 Amaroks, 702 Golfs and 312 Caddys. Recalls to fix them are expected to take much of next year. About 1,600 Audis will probably have to be recalled, including A3, A4 and Q5 models, while Skoda’s include 535 Superbs, 497 Octavias, 267 Yetis and 29 Rapids. The Volkswagen Group has welcomed a decision by the Federal Motor Transport Authority in Germany to implement a timetable and plan of measures by issuing call-backs, which “gives customers clarity with regard to the continued unrestricted use of the vehicles”. It will recall about 8.5m units in Europe. Those in Germany, which total around 2.4m, may

start in January and “all cars should be in order by the end of 2016” after measures have first been presented to “the responsible authorities”. Many vehicles will need software adjustments. Some may require mechanical fixes, such as new injectors or catalysers. Solutions are being developed for each affected series and model year, and the company may

“Our most important task will be to win back the trust we have lost with our customers, partners, investors and the general public. “We have initiated a critical review of all planned investments. Anything not absolutely necessary will be cancelled or postponed. This will not be a painless process.” He says the company will have to fix the EA189 powerplants “in combination

Volkswagens being called back YEAR OF MANUFACTURE MODEL

UNITS

2008-15

Tiguan 2.0 TDi

2,222

2008-15

Passat (B7). Excludes new B8 launched in May 2015

1,433

2011-12

Amarok two-litre TDI, 90kW & 120kW. Excludes current Amarok 132kW TDI

874

2009-13

Golf 1.6-litre TDi & and two-litre TDi. Excludes new Golf 7 launched in February 2013

702

2011-15

Caddy 1.6-litre TDi

312

2011

Polo 1.6-litre TDi

2

2013

Sharan two-litre TDi

2

2011

Touran two-litre TDi

1

Total units

5,548

source: www.volkswagen.co.nz – last updated, October 12

need to set up temporary specialist workshops to deal with more complex cases. Matthias Müller, group chief executive officer, says: “Apart from the enormous financial damage, which it is still not possible to quantify, this is first and foremost a crisis of confidence.

with various transmissions and country-specific designs, so we don’t need three solutions but thousands”. Meanwhile, a law firm in Wellington has opened a class action for the owners of vehicles hit by the scandal. Edward Cox, litigation partner

at Gibson Sheat, says buyers of Volkswagens, Audis and Skodas should not be left out of pocket. “We believe a group action is the best way for owners to hold Volkswagen to account over its actions,” he adds. Although the German company is working on a remedy to remove emissions-cheating software from affected cars, he believes there are concerns this may reduce their power and fuel efficiency. “Their reputation may be tainted due to no fault of the owners and this could lead to a reduction in their values,” says Cox. Ruddenklau says the company will not comment on the law firm’s “solicitation” and on whether owners can ultimately expect compensation. However, he acknowledges owners are free to seek help from wherever they want. “They can come to us and our dealers,” he says. “However, if they want to get external advice, that’s fine. “But I would like to think the way we operate as a distributor – by being open and honest and upfront – that their best course of action is to have a chat with us.” A law firm in Auckland has also entered the fray by advising owners of vehicles produced by the Volkswagen Group to consider lawyers as the last resort, and instead follow due process to recover any losses they may suffer as a result of devaluations. Henry Chellew, a partner at Stainton Chellew, says the first stop for affected motorists should 

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news t be the dealer where they made their purchases. “Ask your Volkswagen dealership how it intends to put it right,” he says. “If you have no joy, you could consider other remedies ahead of court action, which can be protracted and uncertain of success. In addition, it may prevent you from achieving a quicker result. “The Disputes Tribunal can hear claims of up to $15,000. Lawyers are not allowed to represent parties or advocate on their behalf. It keeps out lawyers who tend to represent multi-national corporates, and it’s a low-cost and faster venue for resolution.” Chellew adds a class action is an option, but the key element with this is to prove loss attributable to the emissions scandal. “An identifiable loss requires the owner to be able to point to the issue and say ‘my vehicle was worth this sum, but as a result it is now only worth this’ while bearing in mind cars devalue quickly and,

therefore, damages may be limited.” He adds affected owners may qualify for compensation under the Fair Trading Act (FTA) and, potentially, the Sale of Goods Act (SOGA). “Under section nine of the FTA, there is no requirement for misleading conduct to be intentional, only that it occurred,” explains Chellew.

“They could say Volkswagen has falsely advertised its vehicles meet emissions standards,” she adds. “However, to make a claim, they would need to demonstrate they have suffered damage or loss.” Any fix to emissions software will constitute a repair and is likely to discharge the company’s CGA obligations.

yet to define its fix, owners need to wait for the details of what the remedial work will be. Until that process has been completed and the fix fully considered, the MTA says it is difficult to take a position. The Imported Motor Vehicle Industry Association says it has received many inquiries from car

“We value the trust our customers place in us and will be in contact with them as soon as a solution is identified.” – Tom Ruddenklau, Volkswagen NZ

“Under the SOGA, goods must conform to their descriptions. If sales descriptions make reference to emissions output and those were false, we can say the vehicle doesn’t answer to its description.” Sue Chetwin, chief executive of Consumer NZ, says buyers need to show under the Consumer Guarantees Act (CGA) they have been hurt financially.

Chetwin says: “The issue wouldn’t warrant rejection and for further redress customers will have to demonstrate they have suffered loss or damage.” The Motor Trade Association (MTA), which operates a mediation system between car dealers and buyers, has not yet developed guidance for consumers on the issue. It says because Volkswagen has

dealers and the public about the situation. It has informed its members the issue relates only to diesel vehicles, while used petrol Volkswagen and Audi cars and SUVs being imported from Japan are unaffected. The association adds dealers should explain to customers affected stock does not include Euro 4-compliant petrol vehicles.

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news

Progress on radio spectrums T

he Imported Motor Vehicle Industry Association (IMVIA) says progress is being made to ensure intelligent transportation systems (ITS) will be compatible globally. Kit Wilkerson, the association’s policy adviser and analyst, attended last month’s ITS World Congress in Bordeaux. He told Autofile the industry is working hard to iron out any issues that may arise in the future. One hot topic is the radiospectrum frequencies to be used in different jurisdictions to enable signals to be transmitted between vehicles. The authorities in Japan, Europe and the US are pushing for industry to utilise the 5.8-5.9 gigahertz (GHz) band range for ITS and other purposes, while Japan has also allocated 760MHz for ITS.

10 www.autofile.co.nz

Part of the exhibition area at the ITS World Congress in France

While in France, Wilkerson was able to discuss with some original equipment manufacturers (OEMs) about how any issues may be resolved, but stresses “this is still work in progress”. He says attending the conference was successful in that

the IMVIA has made more contacts going forward on these matters. “We can’t hazard a guess on how they will be resolved yet because there are too many variables and the technology is still being developed,” says Wilkerson. “We are, however, in discussion with engineers and OEMs about the effects their designs will have. “It is about working to influence proactively and reactively, including developing contacts for when these cars roll out so we understand the issues, and can negotiate with stakeholders overseas and in New Zealand.” Part of the issue in this country is that the 700MHz band of radio spectrum is owned by telecommunications companies. As a result, Wilkerson says it’s necessary for the automotive industry to talk to the likes of Spark, Vodafone and 2degrees because they own their frequencies. “We don’t intend to get on the same frequency as them,” he says. “That’s not an option anyway because they own it and no one else has a right to broadcast on it.” He adds attending the ITS World Congress was also successful because there were many stakeholders involved with everyone working on solutions.

“I spoke to an engineer from Toyota, which is one of the biggest drivers of this particular ITS technology in Japan,” says Wilkerson. “Such technology is first going to be used in vehicle-tovehicle communications, but probably as an optional extra and not integrated into the cars themselves.” He also touched base with an engineer from Honda, who believes it’s unlikely his company will use the 760MHz band in the near future. “In addition to 760MHz, Japanese manufacturers can utilise 5.8 and 5.9GHz, so hopefully most technology will be developed in that frequency as the US and Europe are doing. “The benefit of utilising 5.85.9GHz is that those frequencies are not restricted in New Zealand. “It appears that is what Honda intends at the moment, but it does reserve the right to expand technology into that area. “For example, if Toyota is successful in what it does in the 760MHz band, then Honda may look into developing similar – and probably compatible – technology utilising that band.” As for the bigger picture, Wilkerson is confident solutions will be found to future problems relating to radio-spectrum frequencies, and their effects on how ITS will work and how they are connected to vehicles. “Of course, 5.8 and 5.9GHz is not an empty piece of spectrum either,” adds Wilkerson. “It is the frequency on which most of our home and business wi-fi systems work, and amateur radio and even devices, such as cordless phones, operate. “As more devices broadcast on this frequency, interference is inevitable and industries will compete for priority or control. “This bandwidth crunch will be just as important as compatibility and incompatibility issues moving forward.”


news

Bidding war for finance company

H

eartland New Zealand has trumped an offer from Turners Ltd to buy shares in Motor Trade Finances (MTF). The company is interested in buying 10-20 per cent of the Dunedin-based financier’s shares at $1.50 each subject to completing due diligence satisfactory to it. Turners’ unconditional offer comes in $1.15 with it prepared to receive acceptances to take its holding up to just under 20 per cent of MTF’s ordinary shares. Heartland notes MTF shareholders who made acceptances on Turners’ offer, which closed on October 17, have a cooling-off period to cancel them. It says: “Heartland remains interested in an acquisition of all MTF shares subject to more fulsome due diligence and reaching agreement with the board on a process. “An initial cornerstone acquisition

offer,” says Higgs. demonstrates His board views Heartland’s commitment a fair value for MTF to making a full takeover. ordinary shares as “It would also $1.39 to $1.71 each. provide a platform to “Accordingly, we enable Heartland to note Turners’ offer of offer its broader range $1.15 is below the of finance products – bottom of our range,” including insurance, operating lease, plant Jeff Greenslade, chief executive says Higgs. officer of Heartland NZ “However, the and equipment, board notes it is higher than the livestock, marine and unsecured range in which MTF ordinary shares personal finance products – through have been trading over the past 12 MTF’s originating shareholders.” months, [which] has been in the Stephen Higgs, chairman of MTF, range of 90 cents to $1. welcomes interest shown by Turners, “In the absence of other which has been a shareholder since unconditional offers being 2004 and provides about 10-20 per likely, Turners’ offer presents an cent of its monthly sales volume. opportunity for dry shareholders, He notes Turners is considering who no longer originate loans with making offers to take over runMTF and who are looking to sell MTF off ledgers from non-originating shares in a timely manner at a price shareholders. that hasn’t been attainable since the “The MTF board will not agree ordinary shares were issued in 2009.” to such transfers as part of Turners’

Higgs says it appears the main purpose of Heartland’s latest offer is “to limit acceptances Turners receives, so as to improve Heartland’s ability to make a successful full takeover offer at a later date”. He adds there is “uncertainty” with Heartland’s offer. That includes whether an unconditional offer will be tabled, if MTF’s board will allow an acquisition above 10 per cent and if a required special resolution of ordinary shareholders is made. Higgs notes Turners’ offer closed before any unconditional offer could be made by Heartland. “The board considers the Heartland proposal, on its own, doesn’t provide sufficient cause to recommend to shareholders who would otherwise accept Turners’ offer not to do so.” Visit www.autofile.co.nz for an edited version of Higgs’ full statement to the NZX.

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11


technology

Advanced systems being developed T

oyota is planning to invest about NZ$74.5 million over the next five years in researching and developing intelligent vehicle and mobility technologies. The company is teaming up with two universities in California and establishing joint research centres. It describes opportunities to improve daily living through artificial intelligence supported technologies as “boundless” with the potential to develop life-saving vehicles. “We will initially focus on accelerating technology with the goal of helping eliminate traffic casualties, and improving quality of life through enhanced mobility and robotics,” says Kiyotaka Ise, chief officer of Toyota’s research and development group. Combined research will be targeted at improving the ability of intelligent transportation systems to recognise objects around

Kiyotaka Ise announcing Toyota’s investment in intelligent transportation systems

cars, provide better judgement of surrounding conditions, and collaborate with vehicle occupants, other vehicles and pedestrians. Applications of the same technology to human-interactive robotics and information services will also be researched. Beyond Toyota’s work on autonomous vehicles and advanced systems to support motorists, the company has been developing robots

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for industrial use since the 1970s. The news comes with the marque aiming to retail self-driving cars in Japan by the 2020 Tokyo Olympics. It recently tested a modified Lexus GS on the city’s expressway. It drove itself within the 60kph limit for about 10 minutes and completed automated moves, including merging, changing lanes and keeping “inter-vehicular distance”. It uses multiple external sensors to recognise cars and hazards before automatically operating the steering wheel, accelerator and brakes. Currently, the vehicle can only operate on main roads with straightforward driving conditions. Visit www.autofile.co.nz to find out more about the car.

PROVIDING SIXTH SENSE Audi’s pre-sense safety system is now available in some of its models. The standard version intervenes after detecting unstable driving situations via electronic stability control sensors. The front seat belts are electrically tensioned, and sunroof and side windows closed to leave a small gap, while hazard warning lights come on to warn motorists behind. The pre-sense front version is available with stop and go. It is intended to prevent rear-end collisions or at least reduce their outcomes. An integrated braking guard is activated in dangerous situations to warn the driver. At the same time, the braking system is prefilled and optional adaptive air-suspension dampers are set to hard. If the motorist fails to react,

the system briefly brakes with a jolt serving as the second warning with belts slightly pretensioned. If the driver depresses the pedal, hydraulic brake-assist increases power as appropriate. Should the warning jolt be ignored, autonomous partial braking is initiated if vehicle ahead is moving. The windows and sunroof will be closed, belts tensioned considerably and hazard lights activated. Audi’s pre-sense plus has two extra stages for emergencies. The system increases deceleration and tighten belts completely. The final phase – autonomous full-brake application – occurs about half a second before an inevitable crash. Another sub-function, presense rear, is coupled with side assist. If it detects an imminent rear-end collision, it uses adaptive brake lights to warn traffic.

MARQUE TO ACCEPT LIABILITY Volvo is the first vehicle manufacturer to promise it will take full responsibility for accidents involving its self-driving vehicles. Hakan Samuelsson, chief executive officer of Volvo Cars, says it “will accept liability whenever one of its cars is in autonomous mode”. There is much debate on the issue of responsibility with self-driving cars, especially with multiple companies pushing into this technology. While Google’s self-driving vehicles have been involved in accidents on public roads, people in other cars have been to blame. Nissan has plans to put an automated vehicle on Japan’s roads next year, while Tesla is “almost ready” to take its vehicle driverless on main roads and parallel park. Apple and Uber also want to develop autonomous cars. Volvo adds it will regard the hacking of autonomous vehicles as a criminal offence. “We are evolving software to counter risks associated with this,” says Samuelsson, who believes the introduction of self-driving cars will happen more quickly than many lawmakers anticipate.


news

Buyers are ‘spoiled for choice’

T

he sports utility vehicle (SUV) segment faces plenty of competition in this year’s New Zealand Car of the Year awards. Although SUVs account for six of the 10 finalists, 2015’s line-up is broader than last year’s with one marque accounting for three of the berths. The finalists are the Audi Q7, BMW i3, Ford Mondeo, Hyundai Tucson, Land Rover Discovery Sport, Mazda 2, CX-3 and MX-5, Subaru Legacy/Outback and Volvo XC90. The AA and NZ Motoring Writers’ Guild will announce the winner at Auckland’s Viaduct Events Centre on December 9. “Last year’s top 10 was dominated by SUVs, but over the

The Mazda 2, CX-3 and MX-5 are NZ Car of the Year finalists

past 12 months a wider range of vehicles has been launched,” says Stella Stocks, the AA’s general manager of motoring. “This means while the SUV segment continues to grow strongly, it’s getting a real run for its money in the accolade stakes. “The real standout with all of these vehicles is the quality they bring to the market across the range. Consumers are becoming spoiled for choice with new cars regardless of price points.” On Mazda having three models

Blackwells Mazda General Manager

into the final 10, Stocks says: “That one brand is so strongly represented shows it knows how to impress and is targeting a range of markets well.” While not yet mainstream, BMW’s electric i3 was described by the selection panel as a “real gamechanger” with Stocks saying people should expect to see more of these types of vehicles across classes in future awards finals. As for the Mondeo and Legacy/ Outback, she says they come from the same category but

take different approaches in the medium-large car segment. Alongside the overall winner, there will be best in class for small, compact, medium-large and luxury car, small/crossover, medium, large and luxury SUV, ute, and sports and performance, while the safest vehicle will be based on ANCAP crash-test results. The public will have a chance to vote for one of the finalists for the people’s choice award from November 1 on the AA’s Facebook page and website.

Blackwells Mazda is on the move, with a brand new dealership currently under construction on a prime central Christchurch city site. We now require a dedicated Mazda General Manager to drive all facets of Mazda's growth in the buoyant Canterbury market. Blackwells Mazda is part of the dynamic Oakwood Motor Group, a successful family-owned business employing over 300 staff, while Mazda is NZ's fastest growing volume franchise, with an outstanding range of exceptional new vehicles. The General Manager will facilitate further business expansion in line with Mazda's performance standards and nurture a culture of excellence, teamwork, accountability and outstanding customer service. Motor industry management experience is a pre-requisite, preferably with a proven record in vehicle sales. This is a hands-on position leading a talented team of departmental managers, with the unique opportunity to shape the future direction of the Mazda brand in Canterbury from our new dealership.

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13


new cars

Three driving modes for plug-in

M

itsubishi says its new electric car turns conventional thinking on its head. The Outlander plug-in hybrid electric vehicle (PHEV), which can be charged from a mains socket, has three driving modes. EV mode is all-wheel electric drive with an overnight charge providing a range of 52km. While electric motors still power the car in series hybrid mode, the petrol engine is ready to generate electricity to top up the drive batteries when accelerating hard or climbing a hill. In parallel hybrid mode, the 91-octane MIVEC petrol engine takes over at higher speeds. Daniel Cook, head of sales and marketing, describes “range anxiety” as a thing of the past. “Typically, a focus on power can tend to sacrifice economy

The new Outlander PHEV VRX

and vice-versa,” he says. “Not in this case. The electric motor’s 332Nm of torque and V6-style power have positioned the PHEV as the performance car of the Outlander range. “The two-litre engine is constantly ready to generate electricity or add extra power when needed.” Harvesting electrical energy through regenerative braking is a big feature with the PHEV, while

dash-mounted displays help the driver keep track of real-time energy levels. Braking is improved by adding two-pot front brake callipers. Other additions are energy-saving LED headlamps, daytime running lamps and tail-lights, and 18-inch machinefinished alloys. Inside, the marque has added soft-feel leather seats in the VRX model and front-seat heating.

A key safety feature is the new mis-acceleration prevention system. If the driver accidentally stamps on the gas pedal instead of the brake while moving forwards or backwards, a device senses if there’s something in the way and disables the throttle. The XLS variant of the PHEV starts at $59,990 and the VRX costs from $66,990, plus on-road costs. They are available now.

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he Ignis five-door hatchback is among 22 vehicles being displayed by Suzuki at Tokyo Motor Show, which opens on October 29. Its stand at the event will be called Suzuki Next 100 as a precursor to its centenary being celebrated in 2020. Based on the iM-4 concept shown in Geneva earlier this year, the Ignis has bold styling for a small car. It boasts prominently flared wheel-arch moldings, a fullwidth grille with encapsulated headlights, clam-shell shaped bonnet and projector headlights. The Ignis has generous ground

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Suzuki’s Ignis

clearance and distinctive looks that give it unique character. Its futuristic interior includes a bold dashboard and a central tablet-style display for the infotainment system. Like the all-new Vitara, which recently launched in New Zealand, it has colour panels that can be inserted for the dashboard. The Ignis’ name revives one Suzuki used for the hatchback that ended production in 2008, but the latest creation bears no resemblance to the original. Recent testing of the new model has been completed in the Swiss Alps with production slated to start in the second half of next year.


Keeping pace with technology I

s our industry ready to be disrupted? With the continuing evolution of technology, this is being faced by many these days. It’s becoming obvious to most, if not all, that it’s not a matter of “if” but more determining “when”. The reality for the vehicle industry is that it will not be excluded from major disruption, so it’s important we understand where things are likely to change and how we may combat them. Consumers are also evolving. Every year, the gap continues to widen between their expectations and what experiences are delivered by dealerships. Some are keeping pace. However, I am noticing an upward trend in those struggling to deliver – or keep up with – customers’ expectations. Everyone is becoming more time-poor. Not only do consumers want relevant experiences, dealerships are crying out for efficiencies and process improvements to get the best returns on investment in staff and initiatives. Companies in our industry will continue to be successful as long as they continue to keep pace with expectations and technological advancements. Those standing still and doing business as they always have will awake one morning wondering where their customers have gone. The future is exciting, but it will pose a dangerous situation for those with a lack of vision. I see the following trends playing big roles in how technology will dominate the future.

Personal: Everything they are happy will will be customised take up your working for the consumer. day. Computers will do Generic advertising everything else. and marketing will Integration: Industry become ineffective and players will join their catalogue websites less systems together, popular. so isolated pieces of Predictive: Technology information become MARK GREENFIELD Motorcentral will know what customers part of a living fabric. want and sometimes before they Systems will leverage this and feed know it themselves. Products will it into all operations they perform. find their buyers and the concept Data: This is moving to the cloud of searching for things will become where it’s accessible in ways never the exception not the rule. before possible and in volumes Automation: This trend is beyond our wildest dreams. obvious, but we expect it to Today, data is mostly presented become more aggressive. We will as statistics, patterns and insights become comfortable dealing with in reports. In the future, the norm automated devices for everything. will be for computers to make Embedded: Computers and observations, detect trends and technology will be everywhere, so make predictions, and finally make much so that you’ll stop noticing suggestions or even decisions. it. Computers will get smaller and into almost all objects, and will Funnily enough, the technology communicate with each other. required to do things such as this has Experience: The focus on been around for at least 20 years, so consumer experience will be the why hasn’t it happened yet? battlefield of customer-facing The technology required was businesses. Making things simple too expensive – mainly the cost of and convenient while ensuring storing large amounts of data. The

Storing large amounts of data has been expensive in the past

internet’s slow speed was a barrier. People weren’t dependent on the web and didn’t understand it, which meant they didn’t trust it. Only in the past 10 years have these barriers started to come down with most progress occurring in the past 36 months. It’s important we continue to question how things can be completed more efficiently and effectively to make businesses better. Motorcentral intends to be at the forefront of this battleground as a technology provider and our approach will be to act as a leading disruptor. We will be challenging the way things have always been done with innovation and development – most importantly, in line with consumer and business needs. We’ve been working hard over the past few years to integrate with a large number of players and service providers to connect various parts of the industry. As this continues, we hope automation will be allowed to begin to play a wider role to create a more streamlined and smarter industry. So back to my original question: Is the motor industry ready to be disrupted? I believe so now more than ever and challenge you to think how you will be selling your cars in five years’ time. What advancements will we have made and what will consumers’ expectations be? We hope to be a part of that vision, drive and foundation needed to deliver this future. Our products and services will continue to evolve until we reach and exceed these expectations.

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15


regional report

Lake Rotoiti from the pier at Saint Arnaud

Abel Tasman National Park

Stability across economy essential N

elson has experienced dramatic population growth in recent years as the largest urban centre at the top of the South Island, and now faces the challenge of sustainability and stability across all sectors. The city has 46,437 residents and its regional population comes in at 93,951 meaning 2.21 per cent of the nation’s population lives there, and it’s growing at a rate of about five per cent a year. ANZ’s regional trends economic report for Nelson Marlborough published in late August describes the area’s growth in the prior quarter as “flat” and “subdued”. However, local businesses and – in particular – car dealers are positive about the coming quarter, which they say is traditionally buoyant for trade.

marketing potential for the region. With a major port, booming This is associated not only with tourism industry, and strong diverse outdoor activities on offer, but agricultural, fishing, forestry and also a strong cultural and café scene. horticultural sectors, the future There are some big employers looks bright for the region. The key now is managing ample in the area, such as Nelson Pine Industries, the New Zealand King resources effectively as detailed in Salmon Nelson City Company, Council’s Sealord and long-term Talleys. plan adopted According in July 2015. to the In the national document, census in Mayor 2013, there Rachel Reese Construction of Nelson’s Christ Church Cathedral were 5,622 outlines the began in 1925 and took 40 years to complete businesses need for with about 25,000 employees in more spending on infrastructure, Nelson, and 6,446 businesses with protecting natural resources, and around 19,000 staff across Tasman. a focus on the central business The unemployment figure district and its activities. stands at 4.8 per cent, which is There is a strong emphasis on

LOOKING AT THE NUMBERS

Nelson vehicle sales - October 2014 to Sptember 2015 Used cars

New Cars

Oct ‘14

187

73

10

57

241

983

349

Nov ‘14

175

82

20

52

237

876

299

Used Commercials New Commercials

Public to Trader

Public to Public Trader to Public

Dec ‘14

244

76

7

41

274

957

358

Jan ‘15

223

90

8

56

260

892

334

Feb ‘15

184

98

15

43

212

949

317

Mar ‘14

194

103

13

66

267

1,046

298

Apr ‘14

186

72

13

46

221

942

275

May ‘15

210

75

16

63

245

954

307

Jun ‘15

239

96

17

77

287

906

328

Jul ‘15

230

84

10

46

257

1,037

345

Aug ‘15

209

81

12

45

232

886

314

Sep ‘15

186

134

17

64

231

942

309

Total 12 months

2,467

1,064

158

656

2,964

11,370

3,833

142,248

94,008

8,720

38,469

155,326

493,868

207,972

1.7%

1.1%

1.8%

1.7%

1.9%

2.3%

1.8%

2,109

1,155

137

702

2,771

11,052

3,680

358

-91

21

-46

193

318

153

17.0%

-7.9%

15.3%

-6.6%

7.0%

2.9%

4.2%

Past 12 months NZ sales Nelson’s % of national sales Previous year sales Oct 13 - Sep 14 Units increase/decrease Oct 13 - Sep 14 % increase/decrease Oct 13 - Sep 14

Population 16 www.autofile.co.nz

New Zealand 4,242,051

below the New Zealand average of 5.9 per cent, while regional exports have climbed by 9.7 per cent on the previous year. Nelson Marlborough Institute of Technology offers about 80 courses, which range from aviation, engineering and information technology to business and tourism. Meanwhile, the influx of residents experienced after Christchurch’s earthquakes has plateaued, but local businesses are benefiting from interest in lifestyleand-house packages stemming from people based in other regions and even as far away as Auckland. Sales of private residences, according to latest REINZ statistics, are up by 22 per cent from the previous year, and interest in highend residential development is on the increase.

Nelson

93,951

2.2%

Statistics on the automotive industry show that while new car and commercial sales dropped by 7.88 per cent and 6.55 per cent respectively over the past 12 months, those of used cars jumped by 16.97 per cent and by 15.33 per cent for used commercials. Ryan Durry, managing director of Quay Cars in Nelson, says business has been good in the past quarter. “Over the holiday period in October, things went very well,” he told Autofile. “It kind of took off. “Commercials are popular, and the demographic of females wanting a utility vehicle that’s easy to drive and practical for a family of four is growing. Utes and commercials aren’t just for tradies anymore.” Durry feels that despite the economic forecast for the region, business appears buoyant with 


regional report

The Car Company in Nelson also has branches in Tahunanui and Richmond

t trade occurring out of town via online sales. Shane Drummond, managing director of The Car Company, is experiencing steady sales, although he reports issues buying from Japan because of the kiwi’s cross-rate and market conditions there. His business focus extends into the local community with sponsorship. He has a broader model with a workshop and finance company, so he can see who is buying, what needs fixing and what customers are paying for vehicles, while repeat and referral business are his cornerstones. In terms of growth in the area, Drummond’s perception reflects the statistics for commercial building activity, which has dropped off from last year. “We have people who were here five years ago and they say things have stayed the same,” he says. “There aren’t a lot of major new projects going on at the moment. It’s an interesting scenario here because of that.” A slightly higher-than-average ageing population at 17.5 per cent of the national average of 12.3 per cent has made a mark on the property market. “There are a lot of financially stable elderly people who aren’t going anywhere and have the ability to spend in the upper bracket of housing,” says Drummond. “This becomes a little bit contagious when talking to people outside of town. “Once you get a little bit of a taste of Nelson you tend to probably say ‘well, it’s not a bad place to live’.”

POSITIVES IN MIXED BAG As for new vehicles, cars and commercial registrations have dropped over the past year, but September was the best month of the past 12 with 134 passenger

vehicles sold while last month was the third highest during that period for sales of commercials, which came in at 64. Drummond, who is also SsangYong’s sales and service agent in Nelson, suggests a range of new vehicles has sprung people into action over the past few months. “People seem keen on goodlooking small cars that sit upright and are easy to get into,” he says. “Older people certainly like the access to these vehicles and we have a few older people in Nelson.” Vern Walker is the dealer principal of Nelson Bays Motor Group. He reports little change in trade in the past quarter, although interest in commercial vehicles is growing. “There is still reasonable activity in the commercial market and we’ve noticed a slight increase on those sales. It’s still very competitive. Walker, who has lived in Nelson since birth, sees some challenges for the region in the long term. “There are a lot of benefits for our area. Tourism is up off the back of a good summer last year and we are reliant on that. I see that as a positive. “The challenges, though, can come from what happens globally because we are so reliant in this region, for example, on primary industries. “We need to see good returns on our pip-fruit industry. We need all of our primary sectors to function. “There are also some positives in big business being reported. From the King Salmon perspective, you read in the paper that as much as what it has processed has sold and it will be looking to expand, but its challenges are environmental. “And with the fishing industry, we’ve just come off the back

Quay Cars’ premises in Nelson

“The demographic of females wanting a utility vehicle that’s easy to drive and practical for a family of four is growing.” – Ryan Durry, Quay Cars

of the hoki season, which was reasonably good.”

SEASONAL BOOST AHEAD Moving forward, the influx of seasonal workers who arrive in the region from November until the end of the fruit-picking season in May will make a positive impact on the local economy. Durry notes: “There is definitely an influx of people, especially seasonal workers who seek secondhand cars during the busy summer.” And the inclusion of Nelson as one of Jetstar’s routes is a coup for the region as one of New Zealand’s most popular summer tourist destinations.

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17


Vehicles wanted dealers Buying now

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We like cars. But we love drivers.

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EuropEan VEhiclEs WantEd

News in brief Company launches programme to help refugees Daimler will start offering work experience and German classes for refugees at its production plant in Stuttgart as part of a plan to qualify several hundred people seeking shelter in the country. With an initial intake of 40 people for a 14-week programme, the company plans to extend its scope to other sites in Germany. “Immigration is a real chance for Germany,” says Wilfried Porth, Daimler’s head of human resources. “With this work experience, we’re hoping to offer refugees an unbureaucratic way to employment.” Germany expects at least 800,000 refugees to arrive this year as they flee war and poverty in countries such as Syria and Afghanistan. Industry leaders have welcomed the influx of migrants to Europe’s largest economy, which is struggling to find qualified workers to fill jobs in its export-focused manufacturing sector.

Meet first woman to race in Kiwi championship Tiffany Chittenden will be the first female to contest the Toyota Finance 86 Series. It will be her first full season of racing having previously represented Great Britain and New Zealand at the World Karting Championships. Chittenden, pictured, forfeited her European licence to race for New Zealand at last year’s world championships in Spain. Her sixth place meant she was the highest-ranked Kiwi. “I know a lot of the competition has more experience than I have,” she says. “Hopefully I can improve as the series goes on, get some podiums and get familiar with everything by round three at Ruapuna.” The series starts with a support race at Pukekohe from November 6-8.

Korean marque celebrates after hitting milestone

Audi, BMW, Mercedes, Porsche, Maserati, Jaguar and Land Rover Phone Glenn 021 431 685

commErcial VEhiclEs WantEd

Kia Motors has broken through a global barrier by exporting its 15-millionth vehicle. It was delivered to Dubai in the United Arab Emirates, which was significant as the first of the marque’s overseas exports were sent to the Middle East 40 years ago. While the company took more than 36 years to achieve its first 10 million exports in 2011, rapid growth since then means it has taken less than four-and-a-half years to achieve the next five million. Todd McDonald, general manager of Kia Motors NZ, says it’s an “astonishing achievement” because the most rapid growth coincided with the aftermath of the global financial collapse when “automotive sales generally around the world were still weak”.

Extension to racing deal sees stake in derby boosted

Vans, Utes, RV/SUV Phone Cory 027 203 5701

www.corporatecars.co.nz 18 www.autofile.co.nz

BMW has extended its partnership with Auckland Racing Club, which will see the marque become naming-rights holder for the Group 1 New Zealand Derby on March 5. The derby’s current stake will jump from $750,000 to $1 million in 2017 for the 141st running “of what many consider to be the country’s premier race” for three-year-old thoroughbreds.

Billions invested in driverless cars and technology General Motors is pushing into autonomous vehicles and ride-sharing services by slashing NZ$8.2 billion from its manufacturing, purchasing and administration budgets over the next three years. It has also tested a fleet of self-driving Chevrolet Volt plug-in hybrids. Visit www.autofile.co.nz for the full story.


new utes

Best-seller receives makeover N

ew Zealand’s best-selling ute has been refreshed with an array of smart technologies and bolder looks. Among the Ford Ranger’s new features are SYNC2 connectivity, wi-fi hotspot, cooled centre console, dual-zone climate control and heated front seats. Others include hill-launch assist, hill-descent and trailer-sway control, tyre-pressure monitoring, adaptive cruise control with forward-collision warning, and lane-keep assist

with lane-departure warning. On the outside, the ute boasts a new grille. Its headlamps are mounted high up and are shaped to flow into the front mudguard and bush guard on the lower part of the bumper. There are recessed driving lamps and fresh wheel designs. An electronically controlled transfer case allows drivers in fourwheel-drive (4WD) models to “shift on the fly” from 2WD thanks to a knob on the centre console. Low-range four-by-four gearing can be engaged for low-speed

torque and extra downhill braking, while an electronic-locking rear differential helps to improve traction in difficult conditions. These off-road strengths are matched by towing capability of up to 3,500kg, while the fine-tuned suspension provides more comfort and better handling. Electric power-assisted steering (EPAS) provides precise control. The system means steering is light for lowspeed manoeuvring, such as parking, and precise at higher speeds. Assistance varies as needed based on speed, steering-wheel angle, cornering force, and

acceleration and deceleration. By eliminating the powersteering pump used in traditional systems, EPAS results in a quieter vehicle and improves fuel efficiency by about three per cent. The latest generation of Ford’s 3.2-litre Duratorq five-cylinder TDCi diesel engine powers the Ranger. Producing 147kW of power and 470Nm of torque, it includes an updated exhaust-gas recirculation system and can be paired with a six-speed automatic transmission. The new Rangers, which are available now, are priced between $36,040 and $69,640.

The Ford Ranger Wildtrak

Range boasts 21 models

T

oyota has announced the prices for its all-new Hilux ahead of its launch on December 1. The 21-model line-up starts with the two-wheel-drive (2WD) cab chassis at $36,990 and climbs to the range-topping 4WD doublecab SR5 Limited at $70,490. Five of the 2WD models have the same ground clearance and ride height as 4WD variants. These “pre-runner” models – which are aimed at people who want 4WD ride height, but don’t need 4WD capability – are doublecabs with prices ranging from $44,990 to $54,990. There are nine 2WD variants.

Four have automatic options to suit urban buyers, and cost between $36,990 and $54,990. Twelve 4WD models complete the range – a segment of the ute market in which Toyota has been number one for the past 27 years. They retail from $51,990 to $70,490. The marque’s new 2.8-litre diesel engine from the Land Cruiser Prado is fitted to 18 of the 21 variants, while a four-litre V6 petrol engine powers the remaining three. Depending on the model, the diesel powerplant produces up to 450Nm of torque from 1,600-2,400rpm. The Hilux SR5 double-cab

VEHICLES WANTED Mercedes Benz

Volkswagen Nissan Lexus Kia

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

NZ NEW CARS AND COMMERCIALS PAUL CURIN

0274 333 303

pcurin@miles.co.nz

miles motor group www.autofile.co.nz

19


Industry movers NZ labour market report SEAN STEVEN has been appointed as national manager of delivery for Vehicle Inspection New Zealand (VINZ). He joins the company after eight years with newvehicle importer Ateco Automotive where he held roles as national service manager, after-sales manager and group service manager across all of its brands. NEIL WAKA has resigned as manager of corporate affairs at Holden New Zealand. “He joined Holden in 2010 and worked hard at forging media relationships,” says Marnie Jane Samphier, general manager of marketing. “That will have a lasting benefit and for that we are grateful.” Waka was formerly a news anchor with TV One and TV3. His career in broadcasting spanned 25 years after starting in radio as a news and current-affairs journalist. BRIAN STONE has been appointed as national manager – commercial for VINZ. Before taking on the role, he was the company’s business development manager for two years. With more than two decades of experience in the automotive industry, the new position will see him focus on developing opportunities to grow existing and new business across VINZ’s network. TODD HUNTER, pictured, has been appointed into the new role of chief operating officer at Turners Ltd. He has been with Turners Group NZ – previously Turners Auctions – for nine years. He was appointed chief executive officer in 2013 and will retain this role. “Todd’s appointment is part of our succession planning to ensure we deliver organic growth and integration strategies,” says Paul Byrnes, Turners Ltd’s CEO. “It also allows for an appropriate amount of my time to be focused on merger and acquisition activity.” WAYNE PERCIVAL has replaced Tessa Price as chief executive officer of UDC Finance. He has worked in the financial services sector for more than 20 years. He previously headed the specialist distribution team for ANZ NZ’s retail and business banking division, and worked for UDC in a number of senior roles between 1993 and 2004. Percival also spent four years with Esanda Fleet Partners in New Zealand and Esanda Finance in Australia. He returned to this country in 2008 as a district manager for the business banking division. GEOFF SHORT has been appointed co-ordinator of the Toyota Finance 86 Series. He will be responsible for attracting extra support for the competition and encouraging more drivers to take part. “Toyota realised to get the series going properly it needed more support,” says Short. “My role is to make that happen.” His plans for the series include a celebrity vehicle at each round and a scholarship car for a young driver subject to securing sponsorship.

TO FEATURE IN INDUSTRY MOVERS EMAIL EDITOR@AUTOFILE.CO.NZ 20 www.autofile.co.nz

The number of vacancies watching activity in this area with being created in New Zealand is interest,” adds Osborne. slowing after a strong run, Roles advertised across the according to an analysis of more country were up by only 1.2 per than 60,000 vacancies listed on cent in the quarter compared to the Trade Me in the three months to previous year, with the biggest lifts September. in the Bay of Plenty – up 22.6 per New roles listed rose by 1.2 cent, Auckland – up 7.3 per cent and per cent when compared to the Hawke’s Bay – up 5.9 per cent. same period of last year, while “Despite job advert growth in the average advertised salary fell Auckland, average advertised pay by 2.6 per cent. slid by four per cent to $71,546, so Peter Osborne, head of Trade we may see flow-on effects in other Me Jobs, says the employment areas of the economy if the slip market has been hinting at a turns into a longer-term trend.” slowdown for several Regions showing months. the largest drops “Economic in advertised roles indicators suggested included Marlborough the Kiwi market was – down five per cent, cooling off this year Canterbury – down 6.2 with employers not per cent and Wellington hiring as often, but – down 7.6 per cent. new listings remained Although the number Peter Osborne, head of strong on Trade of roles available in the Trade Me Jobs Me in the face of a capital has simmered, pessimistic outlook. Over the past it’s not all grim news as it topped the three months, however, things country’s highest average advertised have started to quieten.” rate of pay at $75,484. Job hunters in Auckland sent Roles on offer in Canterbury 17 per cent more applications in dipped by six per cent, while the the 12 months to September when average number of applications compared to 2014. jumped by 41 per cent. Osborne notes there has also The easing of the market in been a noticeable lift in interest the Garden City was based mainly for roles outside this country’s around rebuild work with listings largest city. in construction and architecture “Over the past year, 13 per cent down by 27 per cent, and those in of applications sent by Auckland transport and logistics decreasing candidates were for roles located by 32 per cent. outside the region. Nationally, people looking “That was up by 47 per cent on for roles in construction and the previous year, matching the architecture, trades and services, pressure on the cost of living in and human resources and New Zealand’s biggest city. This is recruitment found more choice reflected in the 81 per cent lift in over the quarter with advertised applications for jobs in the Waikato roles up by 12.4, 14.7 and 16.4 per by Aucklanders.” cent respectively. Other areas notching up Those in retail rose by five per increases in applications from cent, and in executive and general Aucklanders were Canterbury, management by 19.5 per cent. where they rose by 45 per cent, and Decreases were seen in the Bay of Plenty, up by 32 per cent. government and council by 13.8 “On the other hand, we saw per cent, engineering by 9.6 per a 16 per cent lift in applications cent, sales by 10.71 per cent, for Auckland roles when the banking, finance and insurance by candidate was based outside the 1.4 per cent, and automotive by Auckland region, so we will be 0.6 per cent.


f & i focus

Disclosure to avoid exposure T

here was a huge sense of relief when Ritchie McCaw’s men in black romped past the French in Cardiff to make it into the world cup semi-final. What a competition it has been so far with a number of memorable efforts, not least the brave blossoms of Japan. A sense of relief is felt on a daily basis by some sales staff and business managers in our industry as they hold their breaths during the sign-up and delivery phases in the hope customers don’t ask too many questions about the documentation they are being asked to sign. During our one-on-one or group Protecta coaching sessions around the country, we emphasise the need to disclose everything up front to avoid being exposed then or in the future when the customer re-reads his or her documents. We have touched on the

requirements under covering the interest responsible lending rate or not addressing legislation in previous the insurance premiums articles. included in loan However, we need repayments. to reiterate the point Sure, there may be and recommend all some questions raised sales staff and business by the customer. In managers provide hard our successful training SIMON MOORE or electronic copies of sessions, we dedicate Motor-trader development manager any sales, and finance a great deal of time on Protecta Insurance and insurance (F&I) overcoming objections documents, to each and answering sticky customer as far in questions so your staff advance of delivery as will have every tool possible for the client available. to review and question We live in a modern if necessary. era where answers This will avoid your are only a click of the staff being tripped up at mouse away. the try line or during the Ensuring you delivery process, which have up-to-date links should be a happy time for your on your websites that take the staff member and the customer. customer through to your F&I Gone are the days of the tie partners may eliminate some of

“Gone are the days of the tie covering the interest rate.”

these questions for your dealership. So just ask yourself how long has it been since you have updated your website including your F&I pages? I’m sure all of you and your teams would like to avoid a lost sale or even worse a referral to the “TMO” over the fact you haven’t fully disclosed everything in a sales agreement, loan contract or insurance policy. Not doing so may result in refunds or fines years after selling the vehicle. If you would like more guidance and training on the “how” and “why” of disclosure, feel free to contact us to arrange a visit. Ultimately, by adopting this policy you will in turn build more trust and rapport with each customer. That should result in more repeat business, referrals and, therefore, more vehicle, finance and insurance sales. Happy selling and go the All Blacks.

PROTECTA nationwide F & I results September 2015 Best result: $ 1,137

55%

New Used

50% 45%

Worst result: $ 329

48%

45% 39%

40%

38%

Specialised Training to Increase Your Sales

35% 30% 25% 20%

Our Specialised F&I Training is helping our Motor Dealers achieve greater sales and increased profits. It’s not a secret. Find out more today.

22% 18% 16%

15%

13%

12%

10% 5% 0% Finance

PPP

GAP

Insurance

MBI

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

21


disputes

Buyer failed to give dealer ‘reasonable opportunity’ to remedy car’s faults The finding

The tribunal, in determining if the vehicle complied with the The Motor Vehicle Disputes Tribunal, Auckland. CGA’s guarantee of acceptable quality, had regard to it being a two-year-old New Zealandnew Toyota Corolla, which had wasn’t of acceptable quality and travelled 47,200km when sold. the tribunal agreed. It also considered its price However, the adjudicator of $17,000 and representations didn’t think the faults with the it was in an excellent condition roof and the stone-chipped when supplied. bonnet were substantial because The trader said the vehicle both could be readily repaired for hadn’t been prepared for sale less than 19 per cent of the car’s when it was first seen by the purchase price. buyer on May 4 and had a sign The CGA provides that when on it saying so. The buyer said he a fault isn’t substantial or one didn’t see it. which cannot be rectified, the Whether or not the sign buyer is obliged to “require the was on the car was immaterial supplier to remedy the failure because the dealer supplied it within a reasonable time”. with stone-chip damage to its The buyer wouldn’t allow the roof and bonnet, which meant it trader to repaint the roof and the was unacceptable in appearance tribunal thought he should have and finish. done so to comply with his CGA The reasons for the finding obligations. were based on evidence given It decided the purchaser didn’t by the buyer, the contents of require the dealer to remedy the SGS’ report and the tribunal’s faults and give it a reasonable inspection of the paintwork in opportunity to do so before he strong sunlight at the end of the rejected the car, so it was unable hearing on August 24. to uphold the rejection. It didn’t consider a reasonable The TRUSTED online consumer paying $17,000 for wholesale trading site. autopo a two-year-old car of this typert.net with 47,200km on its odometer t h eThe buyer’s application was Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisbornedismissed. Napier New Plymouth He had to return would regard these defectsWanganui as Palmerston Biggestthe increases/Decreases North Masterton Wellington By town year-on-year Nelson Blenheim Greymouthvehicle Whangarei Aucklandto the trader for the (OctOber 2013 vs OctOber 2012) roof, acceptable, particularly when Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Biggest increases bonnet and front bumper to be sold by a franchised dealer. Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin repainted. The buyer claimed the vehicle Invercargill Whangarei Auckland Hamilton Thames

At:

westport thames napier

wanganui gisborne timaru

c t o b e r 2 0 13

new

Oc hig

mo am 1,4 th 11

  100.0%   51.2%   34.1%

Blenheim nelson rotorua

  27.7%   26.8%   23.7%

F

M

A

M

J J

A

westport Masterton timaru

Used

  

North IslaNd versus south IslaNd

9000

6000

Used 8545

8000

5000

New

7962

7000

6000

3000

2000

SEP ‘13

JuL ‘13

APr ‘13

Nov ‘12

SEP ‘13

Oct ‘13

JuL ‘13

AuG ‘13

JuN ‘13

MAy ‘13

FEb ‘13

APr ‘13

MAr ‘13

JAN ‘13

DEC ‘12

South Island

1000

4000

FEb ‘13

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

North Island

4000

5000

Nov ‘12

J

7000

JAN ‘13

2012

M

Used Vehicle RegistRatiOns

New versus used

MAr ‘13

6500

PassengeR Vehicle RegistRatiOns

10000

DEC ‘12

2013

2

Biggest decreases

new

ConneCt & engage 7000

en

Used

AuG ‘13

7500

5500

S

co

d

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

8000

6000

I

Orders

try

May 6, it had been washed and he 0 900 was unaware of any issues with 8500 its paintwork. He claimed he first

was ordered with the vehicle. But the buyer’s application to reject the car was dismissed because he didn’t fulfil his obligations under consumer law by giving the dealer a reasonable opportunity to fix it.

un

The vehicle was advertised on Autotrader’s website for $17,990 in May 2015 as “in excellent condition” with an odometer reading of 47,200km. Before agreeing to buy it, Dickson negotiated $990 off the purchase price. The trader said this was given in consideration of him agreeing to take it in its then-current condition and unprepared for sale. Dickson denied that and the vehicle offer and sale agreement recorded no such agreement. He added he bought it without having a pre-purchase inspection done because he said he trusted the trader to supply a 10000 car free of faults. 9500 When Dickson collected it on

n: The trader The decisio to remedy problems

coating’s faults could be due to in-service damage or poor coating quality.

JuN ‘13

The case

reject his Toyo problems with its paintwork, but the dealer said he refused to return it to be repaired.

MAy ‘13

On May 4, 2015, Terrence Dickson agreed to buy a 2013 Toyota Corolla GX 1.8-litre hatchback for $17,000 from Armstrong Auckland Ltd trading as Auckland City Toyota. He purported to reject it on the grounds it wasn’t of acceptable quality because of rust spots on its roof. He applied for a refund of his purchase price and other costs incurred. The dealer was willing to repair the faults, but said Dickson refused to return the vehicle to allow it to do so. It denied he was entitled to reject it under the Consumer Guarantees Act (CGA).

became aware of roof blemishes about three weeks later. Dickson’s wife took it to Steve Nuich Panelbeaters & Spray Painters on May 19. It quoted her $776 to repaint the roof. Eight days later, she had A-Grade Vehicle Inspection complete a pre-purchase inspection prior to which she pointed out the roof. The report listed “badly marked body plus rust”. Other issues were a dirty air filter and what was understood to be a windscreen chip. The couple met Mr P Glenn, the trader’s used vehicle manager, on May 28. He agreed to repaint the roof and arranged for the car to be returned on June 2 for this to be done. However, Dickson delivered a letter on June 2 to reject the vehicle. This stated: “We deem the car isn’t of acceptable quality under the CGA due to the paint defects.” It added: “We wish return this vehicle as we cannot feel sufficiently assured there will not be ongoing rust problems even if repaired according to the manager’s offer.” He obtained quotations from Moselle Panel & Paint of $1,600 and from Allan Wakeling Panel Beaters & Spraypainters of $1,587 to repaint the roof. Moselle also quoted $1,569 to repaint the bonnet, left and right-front guards, front bumper and tow eye. Dickson had SGS New Zealand examine the paintwork to see if there was a manufacturing defect. Its inconclusive report stated the

Aroun

Background

buyer wanted to The case: taTheCoro lla because of

8500

Used imPORt PassengeR Vehicle RegistRatiOns by city

aucklaNd, wellINgtoN, chrIstchurch

4500

hamIltoN, tauraNga, duNedIN, PalmerstoN North

8000

4320

600

4000

3000 hicles sold

22 www.autofile.co.nz

Auckland

2000

500

7500

Hamilton

400

2500

7000

icles sold

3500

300

Tauranga


disputes

Purchaser wins compensation four years after transmission problem Background

commonly supplied for or, Faye Shewan bought a new 2010 when section 8(1) applies, they Dodge Journey from Continental are unfit for a purpose made Car Services for $37,268 on known, or for which the goods August 10, 2010. would be fit and they cannot She sought damages of $5,199, easily and within a reasonable which was the cost incurred in time be remedied to be fit for having its transmission repaired purpose.   They aren’t of acceptable about four years and 58,544km quality within the meaning after purchasing it. of section seven of the CGA The claim’s basis was the because they are unsafe. fault was a failure of substantial character within the meaning of section 21 of the CGA. The trader accepted the problem Shewan produced evidence to prove she had the vehicle serviced regularly amounted to a breach of the by Dodge-authorised agents up until guarantee of acceptable quality, but the transmission failed. disputed it was substantial. She sought advice from Gulf It said because Shewan didn’t Motor Holdings, an authorised require it to remedy the problem agent, concerning transmission when it occurred, she didn’t noise when it serviced the car on comply with section 18(2) of the September 3, 2014. act so the trader wasn’t liable for Gulf told her she should take it the repair costs. to a specialist because it was out Section 21 of the CGA defines of its three-year manufacturer’s circumstances in which not warranty and it didn’t service complying with the guarantee of transmissions. It recommended acceptable quality will be regarded Kaspa Transmissions Glenfield. as being a failure of a substantial xxxxxxxxxxx Her claim was the transmission character within section 18(3). failed after she had used the The legislation adds a failure vehicle to travel 58,544km in a to comply with a guarantee he amount sales. more than period ofboosting a little fourof stock held Christchurch are is substantial under certain global the after did come down that dropped to this year’s low of tock levels of new cars have by used car dealers during “Trades people are upgrading financial crisis [GFC]. 18,653 in January. increased every month October was the highest their vehicles,” says Crawford. levels then increased years “Stocking executive chief Crawford, David after it was supplied. circumstances. This is when: with year, this except one monthly total of the year. “Although passenger cars aren’t so again and they respond to the officer of the Motor Industry ctober’s total of 29,509 being the There were 10,374 units hot, SUVs are. of new vehicles sold and (MIA), says current ghest of 2013. imported last month with a   TheAssociation goods wouldn’tnumber have Thein theevidence provided housing market “People the rate at which they are sold. models aren’t sitting around in There were 7,962 sales last variance of 1,829 on 8,545 sales. are refinancing their mortgages basically go up when “They long. too for stock biggest onth, also this year’s The number of cars in stock especially to buy big-ticket items been“Theacquired by a reasonable showed this occurred because the sales go up, but I’m not so sure industry tends to manage mount, while the variance was amounted to 9,323 compared to when they are confident about stock levels quite well and does this about the days stock is held for 400 with 9,362 units imported – 7,494 in September. can’t explain that. keeping their jobs.” being longer and with told Autofile. day in, day out,” he consumer fully acquainted hardening on its bearings failed, he second highest amount after two other been There have All that said, some of the “Average sales per day came “My data suggests this is a 1,065 imports in August. major increases during 2013 – with regional centres, such as Hawke’s down during the GFC and before thing and levels were no The total stock figure at thethe cyclical variances between imports and sales aren’t North, failure’s nature and extent. which resulted in the damage. Palmerston and Bay ” that they were much higher. higher in previous years, but they nd of December was 20,683 and of 3,121 in April and 2,507 in May. showing as much growth as If 80,000 vehicles are sold one Graeme Macdonald, chairman centres. otherAs 100,000 are sold the year and   They depart in one or more acent result of that bearing of the North Island branch of the New Zealand’s of per 80 2013 “But Oct Zealand sales New average in the cars year, new of following stock Dealer Motor Vehicle Industry Imported and Auckland in is population day should be higher – and says the current significant respects per from the failure, costs Association, Christchurch. Shewan incurred 2012 the MIA is expecting more new stockpile should correct itself – as it “If you add in Dunedin and vehicles to be sold this year than normally does. a cover these centres description by which they ofWellington, $5,199 to Kaspa in having the 2012. during “If the monthly stockpile was large proportion of the population There were 54,404 sales in 2009, 10,000 on a regular basis it means and all have strong economies.” 62,029 in 2010, 64,019 in 2011 were supplied. transmission overhauled. there are solid holding numbers,” Year to date, 77,438 new cars and 76,871 in 2012, and the MIA is he told Autofile. “North of that have been imported and 68,612 predicting about 82,000 passenger be looking and we would   The goods are substantially a The trader – represented by Mrat an give to registered been have vehicle and SUV sales this year. oversupply issue. variance of 8,826 so far this year. “We’re looking at about 30,600 “There was good buying in Japan hand has Days with stock at after-sales light commercials and we’re on unfit for what they are S Holland, manager of in March, and we saw high arrival been steadily increasing from 78 in New Passe 113,000 new

The case

The buyer of a Dodge The case: ed the cost of having

Journey claim its transmission repaired. The dealer said it wasn’t liable because the purchaser didn’t ask it to remedy the problem.

the Sime Darby Retail Group – said the dealer was associated with his company. Holland agreed the bearing was faulty and this amounted to a breach of the CGA’s guarantee of acceptable quality. He produced a document about “your task as a Chrysler affiliate” dated June 2005 issued by Chrysler International and said it covered non-warranty goodwill. Holland added that – on a balance of probabilities – had an application been made under that policy when the fault was diagnosed, he believed it would have been accepted by Chrysler. However, he considered the bearing’s failure was a fault the trader should have been informed of before it was replaced by Kaspa and Shewan’s failure to do so meant it had no liability for the repair costs she was claiming. Holland didn’t consider the problem with the bearing was a failure of substantial character. He added that a transmission, ifxxxxxxxxx regularly serviced, should last at least 100,000km.

n: The tribunal The decisio re was substantial

ruled the failu as defined by the Consumer Guarantees Act (CGA). It ordered the trader to foot the repair bill as damages in compensation payable for any reduction in the car’s value. r Vehicle Disputes At: The Motoland . Tribunal, Auck

Also, the tribunal didn’t consider any reasonable consumer would have acquired the car if he or she had been fully acquainted with the nature and extent of the failure and remedial costs. Section 18(3) of the CGA states than when a failure cannot be remedied, or is of a substantial character within section 21’s meaning, the consumer may:   Subject to section 20, reject the goods in accordance with section 22, or   Obtain from damages in compensation for any reduction in value of the goods below the price paid or payable for them.

for stockpile Industry manages levels well Annual high The finding

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

12,984

MIA stock estimate as at end of December 2011

Jan ‘12

5,026

7,499

(2,473)

10,511

242

43

Feb ‘12

7,368

5,633

1,735

12,246

223

55

Mar ‘12

7,228

6,499

729

12,975

218

59

Apr ‘12

6,285

5,430

855

13,830

209

66

May ‘12

7,742

5,942

1,800

15,630

205

76

‘12 Jun   95.5% ‘12 Jul   64.9%   52.0% ‘12 Aug

8,870

7,142

1,728

17,358

211

82

7,894

6,208

1,686

19,044

209

91

8,589

5,959

2,630

21,674

207

105

Sep ‘12

6,828

6,637

191

21,865

209

105

Oct ‘12

8,155

7,336

819

22,684

211

107

212

119

26,867

211

128

220

31 Oct

6,769

34,559

220

34,293

222

4,237 Yokohama 6,828

100

21 Oct 80 138

157 22 Oct 60

1 Nov

2013

Mitsubishi

15 Nov

Honda

16 Nov

2012

Volkswagen

Kia

17 Nov

158

40

-

-

20

-

-

-

Wellington 68,612

Lyttelton 82,380

8,826

7 Nov

13- Nov

16 Nov

0

17 Nov

4 Dec

23 Nov

11 Dec

29 Nov

11 Dec

BMw

Subaru

Audi

Mercedes-Benz

Peugeot

Jeep

PORT TO DOOR SERVICE

h

Ssangyong

Dodge GENEROUS REWAR DS

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495

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Lexus

Land Rover Ship your motor vehicles on Armacup vessels andMini you Chery can earn seamiles points for

Dec

226

-

oct

35,693

-

nov

(266)

-

sep

go to www.autofile.co.nz/subscribe for the latest industry news TARGETED ADVERTISING SPACE 154

7,272

Auckland 1,400 7,962

JUL

77,438

2013 predicted sales

1,654

30,322

120

aUG

Oct ‘13

ytd total

30 Oct

130

JUn

-

20 Oct

apr

-

Dec ‘13

132

220

may

Nov ‘13

125

214

28,668

Feb

9,362

1805

216

28,159

mar

7,006

Oct ‘13

27,077

509

Jan

11,065

Sep ‘13

25,594

1,082

Dec

Aug ‘13

(471)

1,483

oct

8,423

6,347

nov

Jul ‘13

6,800

5,908 Osaka 7,542 Nagoya

sep

Jun ‘13

8,051

JUL

7,429

Hyundai Mazda

Nissan Morning Miracle Suzuki V5

aUG

7,391

May ‘13

Sepang Express V9

JUn

6,329

Apr ‘13

Ford

LATEST SCHEDULE

apr

Mar ‘13

223

may

7,027

6740

238

26,065

(2,030)

Feb

Feb ‘13

24,837

7,385

180

160 104 Hoegh Xiamen 117 140 115V20 222

Port 1,228 5,799Calls

mar

5,355

Days stock in nZ - new cars

Subscribe - FREE 26,867

Total stock at the end of December 2012 Jan ‘13

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

8,579

3,191

6,375

(3,184)

5,395

206

26

Feb ‘12

4,920

6,000

(1,080)

4,315

210

21

Mar ‘12

6,504

6,429

75

4,390

209

21

Apr ‘12

6,613

5,877

736

5,126

206

25

May ‘12

7,693

6,793

900

6,026

208

29

Jun ‘12

6,947

6,184

763

6,789

208

33

Jul ‘12

5,335

6,641

(1,306)

5,483

209

26

Aug ‘12

5,540

6,621

(1,081)

4,402

210

21

6,222

(716)

3,686

209

5,506

Order

18

12 nger VehicleMay 211 2,507 (1,179) 6,867 5,688 Sales need to bear in Oct ‘12 by Make - “Dealers and June. numbers in April, Novemalso ber 2013 18 213 3,810 1,303 8,486 ‘12 nger Vehic Passe mind it takes four to six weeks to New Nov “The stockpile occurs more at le Sales7,183 by Mode 14 Nov '13 215 (705)l - 3,105 Nov '12 Novem 7,119 Nov '13 6,414 ber ” +/‘12 Dec Japan. 2013 % from stock get 2013 Mkt certain times of the year. Since Mkt Share 2013 total (5,474) 78,311 Share 72,837 Model say 300 Make ytd total Larger operations, of in Nov '13 Nov '12 +/back into the I came1746 Nov Mkt 2013 2013 Mkt 1190industry46.7 % 23.4% Share total 14670 19.3% Share dAyS AVerAge Toyota Corolla 685 USed ImportS 673 StoCk SALeS per StoCk 1.8 35.5 Imported626 SoLd462 VArIANCe 9.2%import8102 cars 8.4% dAy5283 2013 Days stock in nZ - UseD hANd 10.7% - ytd At 6.9% Toyota RAV4 618 596 289 3.7 80 261.3 8.3% 3105 3.9% 2521 6519 at the end of December 2012 8.6% 3.3% 180 Holden Total stock Commodore 572 624 260 -8.3 0.7 171 239 7.7% 176 52.0 (2,929) 7,397 4,468 6695 3.5% 2399 8.8% 3.2% Mazda Jan ‘13Cx-5 160 512 6 243 485 1,501 1,325 6,922 239 8,247 5.6 141 Feb ‘13 6.9% 69.5 5447 3.2% 1989 7.2% 11 243 2.6% Toyota Mar ‘13 2,772 1,271 7,581 Liberty 140 382 8,852 yaris 281 35.9 227 267 -15.0 5.1% 3342 4.4% 5,893 2235244 2.9%24 3,121 3.0% 7,418 10,539 Suzuki Apr ‘13 V1 Swift 120 376 405 -7.2 218 34 250 5.0% 254 8,400 2,507 2.9% 8,460 -14.2 4436 10,967 May ‘13 5.8% 2750 3.6% Ford 351 34 Mondeo 252 272 8,627 227 7,862 29.0 8,089 184 Jun ‘13 4.7% 29100Nov 98 87.8 3661 2.5% 1201 261 1.6%29 4.8% 7,621 (1,006) Hyundai Jul ‘13 9,629 310 8,623 ix35 312 -0.6 80 168 4.2% 81 107.4 (13) 2.3% 2994 3.9% 7,608 1338 263 1.8% 29 8,648 8,635 30 Nov ‘13 Aug Mitsubishi 288 261 Lancer 10.3 29 168 262 3.9% 60 7,494 (114) 7,615 84 3527 7,501 100.0 Sep ‘13 4.6% 2.3% 894 Toyota 202 263 1.2% 35 240 9,323 1,829 8,545 -15.8 1 Dec 2013 10,374 ‘13 Oct Camry 2.7% 168 131 40 2563 28.2 3.4% - 1.7% - 2.3% - 1270 172 Holden ‘13 NovCaptiva 178 -3.4 2.3% 135 1861 319 - -57.7 20 2.4% 19 Dec - 1.8% - 2039 ‘13 2012 2.7% 165 Volkswagen DecGolf 153 7.8 2.2% 134 80,077 30.1 6,218 1645 86,295 103 ytd total 2.2% 0 1.8% 1469 1.9% 163 Toyota 26 Dec 150 Highland 96,145 8.7 er sales predicted 2013 2.2% 118 1748 79 2.3% 49.4 1.6% 1092 1.4% 128 Ford 82 Focus 56.1 1.7% 114 1398 29 Dec 212 -46.2 1.8% 1.5% 1429 108 1.9% Honda 60 80.0 Jazz 1.4% 113 1001 1.3% 1.5% COMMERCIAL STATISTICS76 48.7 922 92 OF THE NEW AND USED 1.2% 65 SPONSORSHIP Ford 41.5 Kuga 1.2% 775 1.0% 18 522.2 FOR YOUR BUSINESS 112 AVAILABLE PAGES IS NOW 1.5% 952 86 1.3% 49 Mazda 75.5 Mazda3 1.2% 724 109 1.0% 151 -27.8 1.5% 1537 64 2.0% 46 le.co.nz Toyota 39.1all enquiries 775 or email on 021 455 Aurionbrian@autofi107 0.9% contact For 478 Brian0.6% 23 365.2 1.4% 447 63 0.6% 56 Holden 12.5 Cruze 0.8% 654 106 0.9% 80 32.5 1.4% 1925 54 2.5% 44 Hyundai 22.7 0.7% Santa Fe 508 103 0.7% www.autofile.co.nz | 27 261 -60.5 1.4% 1847 51 22 2.4% 131.8 Honda 0.7% Civic 443 0.6% 100 115 -13.0 1.3% 44 852 43 1.1% 2.3 Mitsubis hi 0.6% Outland 474 er 0.6% 97 118 -17.8 1.3% 1258 34 21 1.7% 61.9 Hyundai 0.5 Days of stock

NeW CArS SoLd

Imported

Make

Toyota

Holden

StoCk

850 wds

Payment protection

25,153

1,714

13,883

Jan

2013

2,469

6,102

76,871

6,484

7,816

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

USed ImportS VArIANCe SoLd

Jan ‘12

Sep ‘12

TWO SAILINGS PER MONTH JAPAN TO NZ

8,953 90,754

Days of stock

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

track for 112,000 or vehicle sales overall.” Business confidence being high and strong regional economies in Auckland and

Imported

Total stock at the end of December 2011

12% 14% 13%

GAP

StoCk

VArIANCe

Insurance

NeW CArS SoLd

Imported

Finance

T

S

The tribunal was required to consider by section 18(3) of the CGA in a always been the way. units, are more static with their 1996, it has ebbed and flowed.” situation when – as in this matter – when oversupply can “You holding not changing too much. Used car stock levels are buying conditions are good, but A drop of 50 units may not be traditionally based on what’s corrects normally the marketplace vary can stock But drastic. too The tribunal believed the the buyer didn’t reject the vehicle, what and Japan in happening or enormously by proportion on yards itself by pulling back from Japan consumers are buying here. selling down. The numbers might with 30 to 40 cars. improved havethe Conditions thereof failure bearing, and the what damages were payable for any drop for a month or two before “They can suddenly be selling recently and the exchange rate trundling up again. without having bought for a few has gone up. supply-chain magic no “There’s reconditioning of the converter reduction in its value. down units 10-15 weeks and being “October and November are miracle. When it’s slow, it tends to be makes them more susceptible,” normally difficult for the industry, slow for everybody. If you can get says Macdonald. to go and thetendstransmission cooler, at so the stockpile It considered those suffered good supply with a good exchange “Dealers then jump online to up,” says Macdonald. “But trade rate, everyone benefits.” buy more from Japan, but that’s up over Christmas and the aswings cost of $5,199 by Kaspa was a by the purchaser were the costs holidays, so it goes down. “December and January are in New Zealand - Oct 2013 stock of used car imports Dealer failure of substantial character in incurred to Kaspa to have the because good months for sales people take time off work, the kids 2012 may have 21(a) of the CGA. people are off school and terms of section transmission overhauled. Christmas bonuses or holiday pay. “It’s a time when Kiwis tend to This was because the vehicle make financial decisions, so dealers need to have plenty of stock to would match demand.have become undriveable “When the market’s down in to get. When Japan, stock is hardthis The trader had to immediately pay without work having been it’s buoyant, you tend to buy what you can because you don’t know $5,199 to the buyer. completed. 17% what will be available next time.

22% 9% 8500

www.autofile.co.nz 23 8000

16%

7500

New P


Brought to you by

the

c

u

u

d Auckland Hamilton Thames o Whangarei n Tauranga Rotorua Gi sborne Napi e r New Plymouth Wanganui Palmerston North Masterton Welli n gton Nelson Blenheim Greymouth

New passenger vehicle registrations by city

ry

Aro

nt

Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim S e Whangarei Auckland Hamilton Thames Greymouth 15 pte m ber 20

Used import passenger vehicle registrations by city

5000

6500

4500 6000

4000

4,198 5,792

5500

3500 3000

Auckland

5000

Auckland 2500 2000

2000

1500

1,597

1500

Christchurch Vehicles sold

Vehicles sold

1000

1750

900 800

1,550

Christchurch 1000 900

700

Wellington 858

800 600

Wellington 502

753

Hamilton

700

555

500

600

Hamilton

Tauranga

400

551

500 346

Tauranga

300

400 221 211

200

Dunedin

300

313

Dunedin 100

279

Palmerston North

200

Palmerston North

0

Sep ‘15

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb ‘15

Jan ‘15

Dec ‘14

Nov ‘14

Oct ‘14

Sep ‘14

Sep ‘15

Aug ‘15

Jul ‘15

Jun ‘15

May ‘15

Apr ‘15

Mar ‘15

Feb ‘15

Jan ‘15

Dec ‘14

Nov ‘14

Oct ‘14

Sep ‘14

0

New and used cars registered in September 2015 by region WHA

AUC

HAM

THA

TAU

ROT

GIS

NAP

NEW

WAN

PAL

MAS

WEL

NEL

BLE

GRE

WES

CHR

TIM

OAM

DUN

Used cars

256

5,792

753

83

551

116

24

220

184

88

313

59

858

186

48

32

7 1,550

88

25

279

New cars

169

4,198

502

63

346

105

44

201

140

48

211

55

555

134

59

14

4 1,597

54

20

221

Total cars

425

9,990 1,255

146

897

221

68

421

324

136

524

114 1,413

320

107

46

11 3,147

142

45

500

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INV

TOTAL

155 11,667 95

8,835

250 20,502


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Moji

15 Oct

Osaka

16 Oct

3 Nov

15 Nov

2 Dec

Nagoya

17 Oct

4 Nov

16 Nov

3 Dec

Yokohama

18 Oct

5 Nov

17 Nov

4 Dec

Auckland

5 Nov

21 Nov

6 Dec

20 Dec

Wellington

8 Nov

28 Nov

10 Dec

27 Dec

Lyttelton

7 Nov

27 Nov

9 Dec

26 Dec

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25


www.heiwa-auto.co.nz

Used imports start to fall back

I

mports of second-hand cars bottomed out in September with 8,683 units crossing the border for 2015’s lowest month. However, 111,393 used passenger vehicles have come into the country so far this year. This compares to 100,228 by the same time in 2014 – an increase of 11,165 units or by 11.14 per cent. The second quarter of 2015 was the biggest for used imports on 43,550 units, which was an 8.6 per cent increase over the same period of 2014. This year’s first quarter recorded a 20.3 per cent jump over 2014’s with 35,066 units imported. The third quarter saw 32,777

used cars crossing our wharves, which was 5.9 per cent more than in last year’s same period. Out of September’s total, 8,075 units came into New Zealand from Japan for that country’s slowest month of the year. Australia was second on 378 units for its third lowest month of 2015, while the US notched up its fourth best month with 87. The UK was next up on 65 for its second weakest total his year, while 60 used cars were imported from Singapore for its second highest month. Peter Johnston, of Genuine Vehicle Imports in Penrose, Auckland, reports steady, solid

sales despite the weakened strength of the New Zealand dollar against the yen. “We are a large yard with up to 400 vehicles ranging from small cars to commercials, and the last quarter was good despite the reported economic outlook,” he told Autofile. Johnston says being a larger yard means the business hasn’t experienced the impact of the kiwi’s exchange rate tumbling against Japan’s currency as much as others, although some dealers are starting to increase unit prices to reflect it. “Our most popular car has been the Nissan Tiida, but the amount of building going on around

Auckland has seen steady sales of used commercials too.” Looking at projected sales, Johnston notes the summer season is always good for dealerships. In terms of competition presented by “fly-by-nighters”, Johnston suggests the higher yen will see the numbers of such traders dropping off. “We are playing the long game,” he adds. “We are reputable and permanent. We have a 50 per cent repeat or referral pattern to our business. “Also, for Auckland, demand for houses and cars is not in decline, so the next quarter should also be positive.”

Used import passenger vehicle arrivals 16000 15000 14000 13000 12000 11000 10000

2015

9000

2014

8000 7000 6000 5000 4000 3000

2013 2012

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Import Passenger Vehicles By Country Of Export 2015

2014

2013

Jan ’15

Feb ’15

Mar ’15

Apr ’15

May ’15

Jun ’15

JuL ’15

Aug ’15

Sep ’15

Sep Share %

2015 Total

2014 TOTAL

2013 total

Australia

258

407

414

359

424

449

477

409

378

4.4%

3,575

3,167

1,990

Great Britain

110

87

86

71

73

108

66

64

65

0.7%

730

1,885

2,908

9,635

9,357

14,301

15,554

13,892

12,148

11,236

11,512

8,075

93.0%

105,710

130,770

100,784

Singapore

30

30

17

48

55

57

77

45

60

0.7%

419

252

146

Usa

80

58

121

92

77

77

93

83

87

1.0%

768

1,278

1,205

Country of Export

Japan

Other countries Total

26

24

25

31

10

25

12

20

18

0.2%

191

286

251

10,139

9,963

14,964

16,155

14,531

12,864

11,961

12,133

8,683

100.0%

111,393

137,638

107,284

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

26 www.autofile.co.nz

CHOICE 100,000 vehicles per month


Proud to sponsor the SecondHand Car Sales Statistics

Steady trade across country S

ales of used passenger vehicles by dealers to members of the public remained almost constant last month when compared to September 2014. There were 17,615 such transactions recorded in September for a 0.8 per cent decrease from 17,756 in the same month of last year. Masterton recorded the highest proportional jump – 13.4 per cent – in trader-to-public transactions from 157 to 178 units over the same timescale. Second place went to Wellington with a 10.4 per cent rise from 1,453 to 1,604. Two centres on the West Coast recorded the biggest proportional decreases in dealer-

to-public registrations last month. Westport had a 37.5 per cent drop from 24 to 15, while they fell from 89 to 56 in Greymouth or by 37.1 per cent. Nationally, trade-ins decreased by 0.1 per cent, 13 units, to 12,756. The biggest gainer was Tauranga where dealer-to-public registrations climbed by 17.8 per cent from 572 to 674. Auckland came second with a 9.3 per cent increase to 4,815 from 4,405. The only part of the New Zealand market to see an overall increase was private transactions, which climbed from 39,578 to 41,204 – or by 4.1 per cent. Shane Drummond, managing

director of The Car Company in Nelson, is experiencing steady sales across his yard. He has a range of SsangYong stock, and used economy cars and people movers through to vans, utes and four-wheel-drives. “Our numbers are good, but there’s no denying we are struggling to purchase out of Japan,” he told Autofile. “We have been buying up to 100 units a month. However, last month we bought half that many. “This is mainly because of the exchange rate, but also due to the price of cars in Japan. We are more comfortable buying stuff locally and nationally.

“Despite the exchange rate, we are not seeing any downgrade at all, even though at the moment – by talking to a lot of dealers – things have been a bit quiet. We haven’t necessarily seen that.” Ryan Durry, managing director of Quay Cars, also in the city, specialises in used vehicles priced at less than $15,000 with a focus on commercials and smaller cars under $5,000. He has about 50 units on his yard. “We have recently sold lots of Falcon XR6s and Mazda 6 sedans,” he says. “These are the types of breadand-butter units we get in.” Most of his business’ trade is secured in the local area with some sales to buyers in Blenheim.

Secondhand car sales - September 2015 Dealer-To-Public

Public-To-Public

Public-To-Dealer

Sept '15

Sept '14

+/- %

MARKET SHARE

Sept '15

Sept '14

+/- %

Sept '15

Sept '14

+/- %

558

568

-1.8

3.17

1,830

1,774

3.2

235

237

-0.8

Auckland

6,091

5,849

4.1

34.58

14,432

13,558

6.4

4,815

4,405

9.3

Hamilton

1,487

1,465

1.5

8.44

3,223

3,168

1.7

1,129

1,277

-11.6

Whangarei

Thames

235

222

5.9

1.33

584

474

23.2

85

94

-9.6

Tauranga

924

1,005

-8.1

5.25

1,964

1,937

1.4

674

572

17.8

Rotorua

299

295

1.4

1.70

869

707

22.9

75

86

-12.8

Gisborne

170

195

-12.8

0.97

358

334

7.2

99

111

-10.8

Napier

557

546

2.0

3.16

1,389

1,322

5.1

407

374

8.8

New Plymouth

391

456

-14.3

2.22

993

1,004

-1.1

201

271

-25.8

Wanganui

180

177

1.7

1.02

577

435

32.6

109

145

-24.8

Palmerston North

753

847

-11.1

4.27

1,621

1,671

-3.0

566

675

-16.1

Masterton

178

157

13.4

1.01

390

354

10.2

96

103

-6.8

Wellington

1,604

1,453

10.4

9.11

2,738

2,725

0.5

1,121

1,151

-2.6

Nelson

309

315

-1.9

1.75

942

978

-3.7

231

214

7.9

Blenheim

197

200

-1.5

1.12

430

428

0.5

113

147

-23.1 -8.3

Greymouth

56

89

-37.1

0.32

175

203

-13.8

44

48

Westport

15

24

-37.5

0.09

59

76

-22.4

0

0

0.0

2,266

2,366

-4.2

12.86

5,182

5,112

1.4

1,862

1,788

4.1

Timaru

232

273

-15.0

1.32

498

504

-1.2

161

170

-5.3

Oamaru

54

75

-28.0

0.31

156

194

-19.6

11

27

-59.3

Christchurch

Dunedin

629

745

-15.6

3.57

1,793

1,685

6.4

425

532

-20.1

Invercargill

430

434

-0.9

2.44

1,001

935

7.1

297

342

-13.2

17,615

17,756

-0.8

100.00

41,204

39,578

4.1

12,756

12,769

-0.1

NZ total

 Consumer Guarantees Act 1993  Motor Vehicle Sales Act 2003  Sale of Goods Act 1908  Fair Trading Act 1986  Energy Efficiency and Conservation Act 2000

Compliance made simple... since 1999

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27


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

Private

Business

% Business

Total

Alfa Romeo

4

80.0

1

20.0

5

Aston Martin

3

100.0

0

0.0

3

70

37.4

117

62.6

187

2

40.0

3

60.0

5

BMW

64

35.2

118

64.8

182

Chery

5

41.7

7

58.3

12

Chrysler

1

33.3

2

66.7

3

Citroen

9

56.3

7

43.8

16

Dodge

22

21.6

80

78.4

102

Audi Bentley

Ferrari

1

50.0

1

50.0

2

Fiat

94

82.5

20

17.5

114

Ford

115

18.9

495

81.1

610

Holden

206

19.3

861

80.7

1,067

Honda

268

75.9

85

24.1

353

Hyundai

166

23.7

534

76.3

700

11

47.8

12

52.2

23

7

53.8

6

46.2

13

31

24.0

98

76.0

129

140

52.8

125

47.2

265

Isuzu Jaguar Jeep Kia

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

% Private

Lamborghini

0

0.0

1

100.0

1

Land Rover

30

44.8

37

55.2

67

Lexus

17

29.8

40

70.2

57

McLaren

1

100.0

0

0.0

1

Maserati

6

60.0

4

40.0

10

385

43.4

502

56.6

887

70

36.1

124

63.9

194

1

100.0

0

0.0

1

Mazda Mercedes-Benz MG Mini

19

30.2

44

69.8

63

Mitsubishi

217

36.0

385

64.0

602

Nissan

203

47.8

222

52.2

425

Peugeot

30

60.0

20

40.0

50

Porsche

20

66.7

10

33.3

30

Renault

0

0.0

7

100.0

7

Skoda

25

30.9

56

69.1

81

SsangYong Subaru

50

45.0

61

55.0

111

115

44.6

143

55.4

258

Suzuki

172

54.8

142

45.2

314

Toyota

292

19.9

1,177

80.1

1,469

Volkswagen

124

40.0

186

60.0

310

Volvo

14

25.0

42

75.0

56

Total

3,010

34.3

5,775

65.7

8,785

‘Great’ model range boosts momentum S eptember was a solid month for sales of new cars and SUVs with 8,785 being registered. Of these, 5,775 units – or 65.7 per cent – were sold to businesses, according to statistics supplied to Autofile by the Motor Industry Association. Toyota topped the ladder thanks to 1,469 registrations with 80.1 per cent of its sales, or 1,177 units, being to businesses. Second spot was taken out by Holden on 1,067 units with 861 being business transactions, which accounted for 80.7 per cent of its total. Mazda, in third spot, was the marque with the highest proportion of private registrations in September’s top five with 43.4 per cent of its sales – 385 units out of 887 – being sold to this part of the market. Last month’s results means Mazda New Zealand recorded its best September on record. They come on top on what managing director Andrew Clearwater describes as a “stellar year” so far for the marque. With record sales of 981 new vehicles across the whole market, which are up by 25.4 per cent year on year, Mazda finished fourth overall in addition to third for cars and SUVs in the market last month. Its figures for September extended its run of year-on-year growth to 28 consecutive months. Clearwater says the results also consolidated Mazda’s second placing in passenger vehicle sales – excluding rental car registrations –

for the first nine months of the 2015. He describes this year’s momentum for the brand as having been “amazing” and showing no signs of slowing down. “It highlights what a great range of models we have in the market with a showroom to suit a wide range of buyers whatever their requirements,” says Clearwater. “Set against our incredible September results, it was particularly pleasing to see the all-new CX-3 extend its foothold alongside its bigger brother the CX-5, which has cemented its position as New Zealand’s favourite mid-sized SUV.” Mazda expects its growth to continue on the back of the recent launch of the all-new MX-5 and refreshed BT-50. “Our hard-working dealer network is energised and excited about their new-generation showrooms,” adds Clearwater. “We are jointly committed to growing our footprint around these exciting market opportunities.” Fourth position in last month’s ladder went to Hyundai on 700 units, of which 23.7 per cent – or 166 passenger vehicles – were private transactions. Ford sold 610 cars and SUVs to claim fifth. It had the biggest proportion of business transactions at 81.1 per cent in the top five, which equated to 495 units. Mercedes-Benz was September’s best-selling prestige marque on 194 units, of which 63.9 per cent – or 124 – were business transactions.

From the rising sun to the long white cloud The history of used car importing to New Zealand 28 www.autofile.co.nz


new vehicles

Utes dominate new registrations T here were 12,474 new vehicles sold in New Zealand during September, which was up by 5.5 per cent on 11,821 units during the same month of last year. The biggest September on record for sales helped to boost the year-to-date total to 99,557 units. This is 5.4 per cent ahead of the same time in 2014 when there had been 94,415 registrations. Ford’s Ranger was last month’s overall top model on 743 units. It was followed by Toyota’s Corolla with 687 and Hilux on 589. The strong showing of the blue

oval’s ute in September means it notched up its third monthly sales record in a row. Corey Holter, managing director of Ford NZ, believes the success of the ute – with its updated version now on the market – is down to an improved package that exceeds customer expectations and provides superior value. “Customers are finding we have taken a winning ute and made it even better,” he says. “It’s more than a facelift. The engineers and designers have looked at every aspect of the vehicle, and made significant

NEW VEHICLE SALES BY BUYER TYPE - September 2015

improvements and enhancements.” As for the competition, Holter says: “It has always been about the customers and letting them decide. “But when launched in late 2011, the Ranger changed how New Zealanders looked at utes. In doing so, it put the competition on notice. “There have been a lot of new and improved entrants with some still to come. But as others play catch up and think they are in range, our new model shifts the posts. “There is a leading sales number and many people focus on that, but for us it’s the customers who matter. The Ranger isn’t propped

up by sales to rental companies and won’t be.” Steve Prangnell, Toyota NZ’s general manager of sales, says there has been a lot of interest in the new Hilux, which goes on sale here in December. He says this stems from existing owners and others entering the ute market, especially with the segment meeting the wider needs of people who previously might have previously bought sedans or SUVs. “That’s a key reason for our expanded model range,” adds Prangnell. “We already have a good bank of advance orders.”

NEW VEHICLE MARKET SEGMENTATION - September 2015

Sept '15

Sept '14

Mth %

2015 YTD

2014 YTD

% YTD

Sept '15

Sept '14

Mth% diff

2015 YTD

2014 YTD

Passenger

4,625

4,989

-7.3

36,682

38,404

-4.5

Passenger

4,625

4,989

-7.3

36,682

38,404

-4.5

Private

1,422

1,686

-15.7

14,374

14,676

-2.1

SUV

4,167

3,332

25.1

33,099

28,108

17.8

Business

1,844

2,057

-10.4

16,323

17,976

-9.2

Light Commercial

3,073

2,862

7.4

25,561

23,781

7.5

Heavy Commercial

487

552

-11.8

3,557

3,724

-4.5

122

86

41.9

658

398

65.3

12,474

11,821

5.5

99,557

94,415

5.4 -1.3

Gov’t Rental SUV

217

223

-2.7

1,798

1,888

-4.8

1,142

1,023

11.6

4,187

3,864

8.4

4,167

3,332

25.1

33,099

28,108

17.8

Other Total market

% YTD

Private

1,589

1,298

22.4

12,905

11,115

16.1

Micro

201

199

1.0

1,376

1,394

Business

1,834

1,548

18.5

15,304

14,282

7.2

Light

1,181

1,545

-23.6

10,986

10,295

6.7

Small

1,714

1,908

-10.2

13,889

16,261

-14.6

Medium

717

681

5.3

5,284

5,158

2.4

Large

546

405

34.8

3,246

3,421

-5.1

Gov’t

42

74

-43.2

560

567

-1.2

Rental

702

412

70.4

4,330

2,144

102.0

Light Commercial Private Business Gov’t Rental

3,073

2,862

7.4

25,561

23,781

7.5

713

543

31.3

6,360

5,617

13.2

2,073

2,089

-0.8

17,262

16,650

3.7

111

158

-29.7

1,032

1,016

1.6

Upper Large

18

22

-18.2

182

239

-23.8

164

144

13.9

948

832

13.9

84

85

-1.2

771

804

-4.1

SUV Small

1,390

1,061

31.0

10,044

7,817

28.5 15.2

People Movers Sports

176

72

144.4

907

498

82.1

SUV Medium

1,412

1,312

7.6

12,106

10,508

11,865

11,183

6.1

95,342

90,293

5.6

SUV Large

1,348

925

45.7

10,639

9,420

12.9

Private

3,724

3,527

5.6

33,639

31,408

7.1

SUV Upper Large

17

34

-50.0

310

363

-14.6

Business

5,751

5,694

1.0

48,889

48,908

-0.0

Light Buses

Sub Total

Gov’t Rental

70

41

70.7

651

449

45.0

461

546

-15.6

3,829

4,332

-11.6

370

455

-18.7

3,390

3,471

-2.3

Vans

2,020

1,507

34.0

9,424

6,506

44.9

Pick Up/Chassis Cab 4x2

903

975

-7.4

7,918

7,331

8.0

Pick Up/Chassis Cab 4x4

1,639

1,300

26.1

13,163

11,669

12.8

Heavy Commercial

487

552

-11.8

3,557

3,724

-4.5

Other

122

86

41.9

658

398

65.3

12,474

11,821

5.5

99,557

94,415

5.4

Heavy Commercial

487

552

-11.8

3,557

3,724

-4.5

Other

122

86

41.9

658

398

65.3

Total

12,474

11,821

5.5

99,557

94,415

5.4

Total market

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Market variables affect supply but its sales have really lifted since then,” he says. “Some of it may also centre on run-outs with new models superseding older ones, and because of various sales and promotions that manufacturers have on the newer model. “I can’t hear any alarms bells at present. What would be more challenging is if what’s being experienced in the demand for SUVs becomes more widespread. “My observation is there always appears to be at least one make in a segment that is constrained and that’s a fact of business.” First-time registrations in the SUV segment remained strong at 33 per cent of September’s market share, reports Crawford. Pick-ups and chassis cabs came in second last month with 20 per cent and small passenger vehicles third with a 14 per cent share. Some marques and models

are currently in high demand, according to Aaron Chatfield, dealer principal at Bay City Mitsubishi in Tauranga. “For us at the moment, the issue is SUVs,” he says. “Previously we didn’t have a stock issue. “We are definitely now having stock issues and in keeping up with demand. The market has swung this way recently. “The Triton is a case in point. It’s very popular and we’ve recently done a price drop on it. “Then all of a sudden and out of the blue, we might get told from Japan that they can’t fulfil the order, which means we are all caught short. “The other issue is the demise of traditional people-mover style of vehicles in favour of something that’s more modern and versatile.” Richard Devery, of King Toyota in Lower and Upper Hutt, says: “Earlier in the year, we had difficultly supplying stock such as

Dealer stock of new cars in New Zealand 48,856

- 12-MONTH AVERAGE

Days stock at hand

200

243

201

180

Oct ‘14

8,297

8,910

-613

48,243

245

197

Nov ‘14

9,075

8,063

1,012

49,255

247

199

Dec ‘14

8,248

6,797

1,451

50,706

248

204

Jan ‘15

6,713

9,010

-2,297

48,409

250

193

Feb ‘15

7,172

7,057

115

48,524

252

193

Mar ‘15

7,569

8,075

-506

48,018

252

191

Apr ‘15

7,746

6,373

1,373

49,391

252

196

May ‘15

9,395

6,843

2,552

51,943

253

206

Jun ‘15

8,297

9,021

-724

51,219

254

202

Jul ‘15

8,842

7,272

1,570

52,789

254

207

Aug ‘15

11,712

7,752

3,960

56,749

256

221

Sept ‘15

8,352

8,835

-483

56,266

258

218

Year to date

75,798

70,238

5,560

Change on Sept 2014

-13.0%

5.4%

15.2%

Less IMPORTED

MORE SOLD

MORE STOCK

marac.co.nz

September 2014 — September 2015

160 September 2013 — September 2014

140 120 100 80 60 40

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30 www.autofile.co.nz

heartland.co.nz

AUG 2015

JuL

Jun

May

APR

Mar

Feb

JAN

20

Dec

1,220

DAILY SALES

Oct

8,382

Stock

Sep

9,602

Variance

AUG 2014

Sept ‘14

Registered

Days of stock

CAR Sales Imported

the RAV4 and the Highlander. “But stock has freed up and we are expecting good supply right through to the end of the calendar year.” While there were healthy sales of new cars last month with registrations coming in at 8,835 – up from September 2014’s total of 8,382 by 483 units or 5.4 per cent – the number of units crossing the border was lower than registrations by 483 units. The national stock figure of 56,266 units for last month was up by 15.2 per cent on the previous year. Daily sales, averaged out over the previous 12 months, came in at 258 last month compared to 243 in September 2014 – a jump of 15 more cars sold each day, or up by 6.8 per cent. So far this year, 75,798 new cars have been imported and 70,238 sold to increase overall stock levels by 5,650 units.

Days stock in NZ - new Cars

Nov

T

he level of unsold stock in New Zealand can be attributed to more factors than just exchange rates and consumer demand at a time when trade is high. David Crawford, chief executive officer of the Motor Industry Association (MIA), says stock levels rise and fall because new-vehicle distributors import more when sales volumes go up. “For some models, they may just have a short factory run,” he told Autofile. “I don’t see stock levels as being out of kilter with the overall picture.” Crawford says popular segments, such as SUVs, can become stockconstrained when – for example – a particular vehicle type is allocated to another country. “When the new Ford Ranger first came out that was stockconstrained for a little while, which took more than a year to get past,


Cross-rate affects access to stock D

ealers are still finding the cross-rate between the New Zealand dollar and Japan’s yen is impacting on yards’ stock levels, but continuing steady sales of used economy, family and commercial vehicles are being reported. Figures for imports of used passenger vehicles during September starkly contrasted to the previous month with sales exceeding imports by 2,984 units. The amount of used imports last month was 8,683, which was down from the previous month by 3,450 units – or by 22.5 per cent. Stock levels during September decreased to 21,693 from 24,677 in the previous month. However, the level of unsold stock has increased by 4,879 units – or by 29 per cent – compared to levels recorded in September 2014 when total unregistered stock amounted to

16,814 passenger vehicles. Looking at the same period, average daily sales increased from 335 in September 2014 to 392 last month. This means 57 more sales have been made each day over the past 12 months compared to those in 2014 for an increase of 17 per cent. Year-to-date imports of used passenger vehicles came to 111,393 by the end of September with firsttime registrations totalling 108,163 for a variance of 3,230. Glenn Hall, of Croydon Motors in Henderson, Auckland, told Autofile the statistics reflect challenging times for importers. “In general, it has been tough to buy cars over the past couple of months,” he says. “There was a big rush of sales in August and it has been a struggle to replace that stock. “For example, you can sell a

specific car and then realise it is going to cost more than what you got for it to replace it. “I tend to watch the prices in Japan like a hawk, especially the barometer vehicles. That country’s domestic market is fetching high prices while its new car guys are having a bit of a hard time because not many people are trading in new up there.” Hall says the domestic market in Japan for second-hand cars is also of interest to importers in New Zealand. “The competition for those cars is really fierce,” he explains. “Kiwis aren’t going to pay any more for the vehicles we replace sold units with. That’s the real rub. “When we’ve run out of all the cars that we bought in August with the stronger dollar, they will get more expensive. It’s really tough during the crossover between the two.”

Dealer stock of used cars in New Zealand

Days stock in NZ - Used Imported Cars

CAR Sales

180

Imported

Sept ‘14

160 140

100

September 2014 — September 2015

60 40 20

September 2013 — September 2014

AUG 2015

JuL

Jun

May

APR

Mar

Feb

JAN

Dec

Nov

Oct

Sep

marac.co.nz

11,203

Registered

Variance

11,142

61

Stock

16,814

DAILY SALES - 12-MONTH AVERAGE

Days stock at hand

335

50

Oct ‘14

12,650

11,105

1,545

18,359

342

54

Nov ‘14

11,284

11,532

-248

18,111

348

52

Dec ‘14

12,800

12,448

352

18,463

356

52

Jan ‘15

10,139

11,791

-1,652

16,811

362

46

Feb ‘15

9,963

10,572

-609

16,202

366

44

Mar ‘15

14,964

12,313

2,651

18,853

372

51

Apr ‘15

16,155

11,038

5,117

23,970

376

64

May ‘15

14,531

12,415

2,116

26,086

379

69

Jun ‘15

12,864

12,415

449

26,535

384

69

Jul ‘15

11,961

13,891

-1,930

24,605

389

63

Aug ‘15

12,133

12,061

72

24,677

391

63

Sept ‘15

8,683

11,667

-2,984

21,693

392

55

111,393

108,163

3,230

Year to date

0

AUG 2014

Days of stock

120

80

Ken Mullarkey, of Far North Honda in Kaitaia, reports steady sales across the business, which specialises in a range of models – both family and commercial units. He says the Honda Fit is the most popular car on the yard, while his stock levels of used cars are about 18-20 at any given time. “We deal in trade-ins and imported,” says Mullarkey. “The cross-rate at the moment sets your expectations in terms of the maximum buying price you will go to. “This is because, at the end of the day, that buy price will reflect through to your retail price. “When the dollar was nearer to 90 against the yen, you were looking at things from a more ‘generous’ mind, whereas today – with it being around 77 – that level of cost makes you think very closely about what you are prepared to buy at.”

Change on Sept 2014

-22.5%

4.7%

29.0%

Less IMPORTED

MORE SOLD

MORE STOCK

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