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Issue 20-2014 6 November 2014

Huge hikes in fees aim to ‘cover costs’

In this issue

harges levied by the NZTA for warrant and certificate of fitness (WOF and COF) labels have been increased in the first overhaul of vehicle certification administration fees in more than a decade.

The new certification payment for a WOF is $1.78, which is a 114 per cent increase from 83 cents, and the charge for a COF label has climbed by 205 per cent – from $2.45 to $7.48.

Other changes have been made to the system for the entry and

p20 Changes at top of Holden

C

oversight of vehicle inspectors and their companies, and other certification services.

Application fees for inspecting organisations, which ranged from $509.07 to $834.13, have been replaced with a higher one of $1,437.50 that includes one site assessment.

The NZTA has also widened the scope of its new $184 hourly rate to include when certification services provided for organisations, vehicle inspectors or applicants don’t warrant charging the full application fee.

The same rate is chargeable for non-routine reviews of inspecting organisations.

The agency says the review has been “driven primarily” by changes to the WOF and COF systems as agreed by the government in January 2013 as part of the Vehicle Licensing Reform (VLR).

They include an annual WOF inspection cycle for all light vehicles first registered on or after January 1, 2000, and allowing a greater and more convenient range of COF inspection options

p10 MTF views on judgement p12 Profile on VTNZ’s boss p17 Dealer goes under cover p18 Record set for safety test

p22 Traders have to list faults

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[continued on page 4]

Electric vehicles ‘game changer’

M

ighty River Power is planning to convert 70 per cent of its 100-strong fleet to electric vehicles (EVs) and plug-in hybrids.

Chief executive officer Fraser Whineray describes the growing market for the two types of cars in New Zealand as a possible “game changer”.

“The technology, performance and costs of plug-in vehicles are

changing rapidly,” he told the company’s annual shareholders’ meeting.

“EVs were odd and impractical propositions a few years ago, but there are now some excellent models on the market that suit our lifestyles.

“They look and perform like ordinary cars and, in many instances, they are better.

“They are quieter, better for the environment and run for

about one-quarter the cost of fossil fuels, less than one-quarter for a plug-in hybrid, and – in the case of a pure EV – that would be about seven times better than petrol.”

Whineray says for many would-be EV owners, the cost savings from fuel – about $2,500 per year – will more than offset the difference in upfront expenditure.

p19

VF range gets high-tech upgrade

[continued on page 8]

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Fee review may put brakes on savings

T

he inspection industry has been engaged in the Vehicle Licensing Reform (VLR) process through meetings, but it appears some concerns haven’t been fully addressed.

Now there are fears the NZTA’s vehicle certification fee review may score an own goal in that some compliance costs will increase, which is the opposite of one of the VLR’s main aims.

Some in the sector believe new costs – in particular with certificates of fitness (COFs) – mean changes, such as opening the market to more entrants, may not appeal to the wider industry that much.

On the other hand, the NZTA expects the volume of applications from prospective operators to be high.

The VLR process has basically been government-driven, so it remains to be seen how many new organisations will want to deliver services.

Some vehicle repairers with two lanes may get better returns on operating both for service and repairs instead of having one taken up by 90-minute COF inspections for heavy vehicles.

There then are costs of applications, training staff to NZTA standards, and the expenditure in getting premises and equipment approved.

Questions have also been raised about the new fee structure and whether this type of charging for legislated compliance services is normal when it appears other areas of government and crown entities may not charge providers and users to this extent.

Perhaps there needs to be greater transparency on actual costs, how they are managed and how technology can be used to make savings and ensure costs don’t increase further – or even drop.

In consultation documents, the NZTA says the recovery of costs from service users must be in the context of efforts to maintain and improve the efficiency of the agency’s processes, so what is there in the way of mechanisms to keep fees under control?

The VLR was supposed to bring in savings, but there now seems to be more costs in some areas, so there could be mileage in having an independent arbiter deciding what the correct fees to be set should be or if a price increase to approve a vehicle inspector is justified.

The bottom line is a lot of money has been spent on the VLR and its changes. The NZTA has to recover this and the revised fee structure is part of that.

But let’s end on a high note by looking back at the 25th anniversary celebrations of the Imported Motor Vehicle Industry Association.

The gala dinner was a great success, so congratulations to the organisers although the free bar did leave a few people slightly worse for wear.

Autofile commemorated the occasion by publishing a lift-out in the October 21 issue of the magazine.

We also burned the midnight oil to cover the event in-depth online the day after the event with picture galleries, news and speeches, which many of you accessed after receiving our Insight email newsletter.

If you haven’t already, why not visit the subscribe section on www.autofile.co.nz to receive our email alerts and order your copy of the magazine.

You can read and download past issues, including that special lift-out, by going to the magazine section and there’s also a comprehensive 25th anniversary section on the home page.

Darren Risby, editor

Editor

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

Brian McCutcheon brian@autofile.co.nz 021 455 775

Journalist & Online producer

Designer

Cameron Carpenter cameron@autofile.co.nz

Adrian Payne arpayne@gmail.com

Autofile is also available as an electronic copy via email. If you’d like to receive electronic copies please send an email with your name and organisation to: subscribe@autofile.co.nz.

Back copies are also available on request.

Copyright: Published twice monthly by 4Media, PO Box 6222, Dunedin 9059 All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions.

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news [continued from page 1]

Concerns over fee structure to reduce downtime. “The fees include changes to reflect the new system and recover implementation costs,” says the NZTA in a discussion paper supplied to Autofile.

The agency adds the review, which was previously “postponed pending work on the VLR project”, will ensure the agency can continue providing certification services on a cost-effective and sustainable basis.

The charges are set out in the Land Transport (Certification and Other Fees) Regulations 1999, which haven’t been substantially reviewed since being introduced.

However, there are industry concerns that the new regime flies in the face of one the VLR’s main objectives – and that’s to cut compliance costs.

New Zealand’s major transport

training inspectors to NZTAservice delivery agents (TSDAs) specified standards.

– VTNZ, VINZ and the AA – have “There are some benefits to been involved in discussions with the changes, but we haven’t the NZTA over the changes.

The NZTA says it’s aware of the seen how the system will work Mike Walsh, chief executive need to minimise the costs of activities it and how fees will be audited,” of VTNZ, stresses it’s not just undertakes. he adds. the fees for the WOF and COF After containing them for 12 years, it says the new certification fees will result in increased “Each inspection labels that are increasing. estimated revenue of six per cent above that organisation will need to “Other charges have also generated under the regime in 2013/14. make its own decisions on gone up, such as inspection The agency adds the remaining managing fee increases, but organisations having to pay increases are due to ongoing and I suspect many will eventually for certain one-off services from time-bound costs associated pass them onto consumers.” the NZTA,” he says. with COF and WOF system changes.

Stella Stocks, the AA’s general “There are some new costs manager of motoring services, and increases in existing charges. dealing with the NZTA. While notes there are ups and downs in The agency has explained it’s some audit fees have gone down, fees, so for existing organisations necessary to pass on costs some one-off fees have more they may level out. for administering the vehicle than doubled.”

“For the AA, it has always certification system and VLR. Walsh highlights other fees been a question of the NZTA “While one of the aims of the affected or introduced include passing costs onto us and these VLR was to reduce compliance applications for inspector will inevitably be passed onto costs for the motoring public, certifications and new inspection consumers,” she told Autofile. inspecting organisations now sites, and costs involved in “In that regard, this new fee face increased costs when 

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V

ehicle certification fees pay for NZTA activities associated with running the system, including the national vehicle certification database and the agency’s contact centre.

The charges for labels also fund the performance monitoring and review of inspecting organisations and vehicle inspectors.

From November 1, the WOF fee went up from 83 cents to $1.78, while the COF’s increased from $2.45 to $7.48.

Entry certification has dropped from $2.55 to $1.55 for new vehicles and remains at $1.94 for used.

Fees that have decreased include heavy-vehicle specialist from $6.54 to $5.18, repair from $14.82 to $4.43 and low-volume vehicle from $39.61 to $15.93.

The charges for replacement labels, which ranged from $7.66 to $16.35, have been scrapped.

Performance review fees are

charged by the NZTA to ensure quality and consistency by inspecting organisations and inspectors through regular reviews.

Previously, audits paid for by inspecting organisations cost between $594.42 and $912.85 including GST depending on the type.

These organisations are no longer charged fees for routine audits, but the cost of performance review activities will be recovered from certification fees. Non-routine reviews will be charged at $184 per hour.

One-off application fees are paid by parties interested in becoming authorised inspecting organisations or vehicle inspectors.

The fees for organisations used to be $509.07 for WOF, $834.13 for COF, $523.89 for used entry and $527.98 for low-volume vehicles.

These have been replaced with a revised fee of $1,437.50, which  includes one site assessment.

news t structure is disappointing given one of the VLR’s objectives was to reduce costs.

“We are now seeing the NZTA starting to impose charges on things we haven’t seen before, which amounts to an increase in its fee regime.”

While some of the mainstream media has focused on WOF costs possibly blowing out for vehicle owners, Stocks stresses it’s not all centred on the warrant becoming more expensive, but more about repair costs.

“That’s all about educating motorists who rely on WOFs as safety checks. That’s fraught with dangers compared to having vehicles serviced and repaired at regular intervals.”

Gordon Shaw, chief executive officer of VINZ, can understand what the NZTA is trying to achieve through its vehicle certification administration fees review – and that’s passing on the costs of operations.

“This new fee structure is disappointing given one of the objectives of the VLR was to reduce costs.”

– Stella Stocks, AA

“Some of this is to do with the end user paying for services and sometimes the big challenge for VINZ is managing NZTA processes,” he says.

“The agency carries out consultation, reviews policies and makes changes with many being implemented by the TSDAs. “As an agent for the NZTA and as an authority to do the work, we also spend a lot of time on administration and don’t charge for that.”

Shaw stresses the changes indicate costs associated with the VLR are being passed on, while some of the fees haven’t been looked at for some time.

“Whether end users will understand what the NZTA is trying to achieve is another matter,” he adds.

“At the moment, we are dealing with some exemption fees, such as those for immigrants’ cars and stripping vehicles.

“This $189 exemption fee, for

example, has been set by the NZTA. It’s a case of working with the industry and other people who connect with regulatory processes.

“We have to collect the fees on the agency’s behalf, and are now looking into how we can do that more effectively and efficiently.

“This may involve getting more into the online space in regards to filling in forms and pre-paying fees because if VINZ provides a service – and we and the NZTA don’t get paid – we don’t want to have to use a debt collector.”

Shaw describes the playing field and approach TSDAs have to take as “evolving”, with the NZTA needing to think about the way it involves everyone working in transport services on its behalf.

“With COF B for example, new organisations will be applying to become vehicle inspectors,” he says.

“In the past, the NZTA would have dealt with VINZ, VTNZ and [continued on page 6]

t

Vehicle inspector fees were $68.69 for WOF, COF and used entry, $318.93 for low-volume and heavy vehicles, and $592.89 for repair certifiers.

These have been replaced with one $494.50 fee, while the $68.69 fee for new entry has been revoked.

Other certification fees are now fixed and are based on an hourly rate of $184 and the average time taken to provide each service.

They used to be $51.12 for identifying an immigrant’s vehicle, and $153.33 for special interest vehicle and left-handdrive permits.

The fee payable by the importer of a used vehicle has dropped from $20.45 to $6.33.

The NZTA has broadened the scope of when the new hourly rate of $184 is charged to cover other vehicle certification services “to more accurately reflect the agency’s average cost of providing them”.

It now charges an hourly rate when certification services provided to inspecting organisations, vehicle inspectors

or applicants don’t warrant charging the full application fee.

For example, it is charged when adding a new inspection site, relocating an existing one and adding a new certification type to an existing authorisation.

The $184 per hour fee is also payable for non-routine monitoring and reviewing of inspecting organisations, and applications for exemptions from vehicle-related compliance rules.

The NZTA says its indicative fees are based on hourly rates and expects them to be accurate for most service users, but factors will influence whether the final charge aligns with the indicative one.

These include related paperwork being correctly completed, the complexity of the inspecting organisation and application, and the site’s size, scale and number of inspection lanes.

Other factors include how prepared the organisation is for assessment, the site’s alignment with NZTA rules and if its enables the inspector to complete a robust inspection.

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news

Gordon Shaw, of VINZ, inset, says new organisations will apply to be inspectors under the certificate of fitness regime – and asks what the future will look like for transport service delivery agents

[continued from page 5]

Charges have ‘statutory mandate’ the AA as its TSDAs by having discussions about changes.

“The question is what does the future look like? Right now, we don’t have any answers except it is changing while engagement with the industry may be product or agent specific.

“VINZ is keen to maintain direct access with the regulator.

We would be worried if there’s no partnership or direct access if this relationship becomes diluted.”

BASIS FOR FEE RISES The NZTA’s revised vehicle certification charges came into effect on November 1 with consultation being carried out in late 2013 and early 2014.

The agency says the new structure aims to meet the cost of COF and WOF changes, as well as other certification services.

“Revenue collected through fees associated with the entry and oversight of vehicle inspectors and organisations falls short of

meeting the full cost of providing services,” it says in a consultation document.

The old charges were “no longer well-aligned with applicable costs” and resulted in unfair contributions from those benefitting from services.

Application fees for inspecting organisation relocations and transfers of ownership needed reconsidering because contributing activities differed from those incurred by new ones.

The NZTA says the fixed fees for such applications now reflect processing costs.

Other changes include canning fixed fees for planned reviews of organisations and staff, and a levy on certification labels for routine monitoring.

The new $184 hourly rate aims to claw back costs associated with non-routine reviews of organisations and inspectors.

It also applies to extra regulatory services provided to

inspecting organisations, such as change of ownership and extra site approvals, and applications for exemptions from vehiclerelated land transport rules.

The costs and fees associated with identifying vehicles as immigrants’ or special interest, category A left-hand-drive permits and vehicle importation have been adjusted – or included, in the case of exemptions – to reflect service provision.

The NZTA says the vehicle certification fee review has been guided by set principles.

All charges must have statutory mandates in relevant legislation or land transport rules, and set in accordance with Treasury and Audit Office guidelines.

The recovery of costs from service users must be in the context of efforts to maintain and improve the efficiency of the agency’s business processes.

It says those who generate or

benefit from regulatory activities should make fair and reasonable contributions, while the targeting of fees at users’ needs must be balanced with a simple structure.

Fee-setting also needs to take into account actual and possible impacts on user behaviour, including undue barriers to entry.

OPENING UP THE MARKET November 1 was the date for new COF providers to apply for approval under the VLR changes.

“We will endeavour to provide feedback to applicants within 20 working days of receiving an application,” a spokesman for the NZTA told Autofile.

“Factors that will influence this include how complete the application is when we receive it and its complexity.

“The volume of applications received, which is expected to be high following November 1, will also affect how quickly applications are processed.”

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news

Takeover crosses the finishing line

D

orchester Pacific is just weeks away from owning 100 per cent of shares in the Turners Group.

The company has issued a compulsory acquisition notice to Turners’ outstanding security holders after exceeding 90 per cent of voting rights.

It will pay the same for these shares as set out in its original offer with instruments of transfer to be received by November 24.

Dorchester issued 121,769,205 ordinary shares and about 22.6 million $1 bonds for its capital raising and as consideration for acceptances.

Of those received by noon on October 30, half were for cash, 27 per cent were for Dorchester bonds and 23 per cent were for shares in the company.

“With the higher take-up in shares and bonds, a lower level of bank funding has been required to settle to date,” says Paul Byrnes, chief executive officer.

“Assuming the remaining 10 per cent is acquired for cash, the takeover will be funded by $13m of bank debt compared to an earlier estimate of $18m.”

He adds the acceptances and capital raised indicate “positive support for the offer and business strategy”.

Turners’ shareholders were offered $3 a share in cash, twoyear notes with nine per cent interest that convert to Dorchester shares, ordinary shares in the company or a combination.

“Seventy per cent of our finance lending is for vehicles and our insurance business has a focus on related products,” says Byrnes.

“We can add significant horse power to grow the business in a shorter time.

“The takeover will be positive for existing customers and staff because it will create new opportunities.”

Visit www.autofile.co.nz for more on this story.

Car of year finalists T

en vehicles have been unveiled as this year’s New Zealand Car of the Year finalists with SUVs making up most of nominations.

They are the Mazda3, Honda Jazz, Nissan Qashqai and X-Trail, Mercedes-Benz C-Class, Mitsubishi Outlander PHEV, Toyota Highlander, BMW M3/4, Jeep Cherokee and Range Rover Sport.

The AA says this year’s top 10 reflects continuing growth in the SUV segment and an intensive year of new model launches.

The winner will be announced in Auckland on December 4. Last year’s title went to the Volkswagen Golf.

Autofile Online has more on this story, along with the Mazda2 being voted Japan’s car of the year. It scored highly for its design and powertrain technologies.

Mercedes-Benz won the imported car title for its C-Class and the innovation award went to BMW’s i3.

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news [continued from page 1]

Sustainable energy way to go “Mighty River Power is pushing on a range of fronts to build awareness of the opportunity for New Zealand around electrification of transport and this country’s homegrown energy advantage,” adds Whineray.

The company is planning to convert about 70 per cent of its fleet to EVs or plug-in hybrids over the next four years as current leases expire.

It wants every car to be electric wherever that’s practically possible because of the economic and environmental benefits.

Mighty River Power is also partnering with other agencies around charging infrastructure, energy plans for customers, drive programmes, and other avenues to promote EVs through manufacturers, the second-hand car market and directly with buyers.

Trans Future 5

“Going electric will help New Zealand’s reputation globally and how we look at ourselves.”

– Fraser Whineray, Mighty River Power

Whineray says a move towards electricity to fuel cars will make New Zealand more independent when it comes to transport.

He believes there will be less risk from volatile fuel supplies

and prices, and the country will not be at the mercy of foreign exchange rates so much.

“If you had a national fleet of 2.8 million vehicles and they were all electric, the country would save about three billion litres of fuel a year.

“I also think the government has made an astute move by placing the energy and transport portfolios with the same minister because it provides a great opportunity for our country’s position to be realigned.

“Going electric will also help New Zealand’s reputation globally and how we look at ourselves.”

Whineray says the government and public services could take the lead, with the likes of district health boards making the switch, while there is also the issue of what the next ministerial limousines will be.

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James Munro, Mighty River Power’s general manager – customer, told Autofile that the conversion of part of the company’s fleet to EVs and plug-ins will depend on what sort of powertrain was fit for what purpose.

“With so much renewable energy in New Zealand, EVs move us more towards independence,” he says.

“We have already got five of these vehicles, while the automotive industry is starting to bring the likes of second-hand Nissan Leafs into New Zealand from Japan.

“EVs and plug-ins are becoming more normal. They are no longer just hobbyist. There are many more of them out there on Kiwi roads than there used to be and the market for them is growing fast.”

Munro says they are easy to charge at home because many people in this country have plenty 

news Left to right, Audi’s e-tron in front of Mighty River Power’s backdrop, people enjoying looking around the EVs and BMW’s i3. Photos: Darren Risby

Putting on a show t of space to park, while more public charging sites will be promoted, which involves working with other organisations to install them.

He believes that the range EV batteries now have are good, and sees future demand being split between plug-ins and pure EVs. “We have a selection of models available in New Zealand and

People at Mighty River Power’s annual shareholders’ meeting had a surprise at the end of official business.

The company arranged to have a Nissan Leaf, Audi e-tron, BMW i3, Tesla Model S and a Mitsubishi

Mighty River Power is working with five manufacturers to bring more into the country,” says Munro.

“There are plenty of options available. For example, if you bought a second-hand Nissan Leaf for about $20,000 you would then save around $3,000 a year in petrol, so it pays for itself after seven years or so.

Outlander PHEV put on display with a specially made film providing a stunning backdrop.

The feature attracted plenty of interest with shareholders taking home brochures after trying out the cars for size.

“As well as talking to the five car manufacturers we’ve teamed up with, we would like to talk to anyone interested in bringing EVs into the country.

“We would like to get more of a coalition going so we can reach a critical mass.”

David Vinsen, chief executive of the Imported Motor Vehicle

Association, attended the meeting at Ellerslie Racecourse on November 6.

“The association is very pleased to be working with Mighty River Power as it starts its push for more EVs, both new and imported used,” he says.

“With New Zealand having 80 per cent renewable energy, it does make good sense.”

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news

Judgement ‘disappoints’ finance firm M

otor Trade Finances (MTF) says it’s unable to quantify any ultimate liability in relation to loans originated by its shareholders.

The company’s view follows the high court releasing a quantification judgement, which the Commerce Commission says clarifies rules lenders must comply with when charging fees.

It comes in proceedings taken against Sportzone Motorcycles, which is in liquidation, and MTF. The commission has alleged both levied unreasonable establishment, account maintenance and arrears charges in breach of the Credit Contracts and Consumer Finance Act (CCCFA).

MTF says the judgement is the court’s application of the close relevance test introduced in a previous liability judgement and is

intended to provide guidance on what can reasonably be recovered through credit or default fees – rather than interest rates.

“This judgement doesn’t precisely quantify amounts by which the fees have been deemed to be unreasonable,” says the company. “This would require further calculations by the commission and MTF. “MTF remains disappointed with the liability judgement when some fees were considered unreasonable. The court’s narrow basis for that doesn’t recognise normal commercial practice.”

The company believes the approach taken to determine if a fee is unreasonable is important for the consumer lending industry.

“It may remain significant in the responsible lending code being developed by the Ministry

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Stephen Higgs, chairman of MTF

of Business, Innovation and Employment.”

The quantification judgement was released on October 20. It relates to fees charged in 39 loan contracts Sportzone originated between May 2005 and July 2008.

In the liability judgement, the court upheld allegations some fees were unreasonable – with appeals to be heard from November 19-20 – but rejected others of inadequate disclosure and breaching the Fair Trading Act. More than half of the quantification judgement deals with recovering costs in percentage terms. It has been ruled some of MTF’s cost items fail to meet the close relevance test.

LOAN ESTABLISHMENT CHARGES The CCCFA permits the recovery through establishment fees of “reasonable costs in connection with the application, processing and considering [it], documenting the contract and advancing the credit”.

MTF allocated 10 per cent of salaries and performance pay of its finance cost centre towards fees to set up loans, which was approved.

The company wanted to recover 50 per cent of the cost of finance premises, but later agreed with the commission’s 10 per cent.

MTF claimed a 100 per cent allocation in 2007 for premium waiver insurance. The judge dismissed this because he said there was no justification for allowing

this to be added to contracts of customers who didn’t take it up.

It was ruled 10 per cent of banking fees and five to 10 per cent of communication charges could be recovered.

MTF’s treasury department was solely focused on establishing funding to make loans. Both parties agreed on 10 per cent for its banking, but other treasury cost claims were rejected.

“It is appropriate to make a distinction between MTF’s cost of funds and operating costs,” the judge said. “Sourcing funds is a company overhead.

“It was envisaged in the Consumer Credit Law Review that costs directly associated with the acquisition or use of finance – including servicing a lender’s borrowed funds – would be recovered through the interest rate.”

Half of MTF’s salaries for credit department staff could be allocated to establishment fees, but not the 80 per cent in 2006 and 70 per cent in 2007 and 2008 claimed.

The company has a department for marketing, IT and financial systems, and its dealer and public website.

It wanted to allocate 90 per cent of wages and training for this, travel at 40 per cent and communication at 50 per cent.

The judge, in allowing only 10 per cent, said: “The evidence suggests this cost centre has a strong marketing bias with a focus on developing infrastructure rather than costs closely relevant to transactions.”

The MTF argued training, travel and communications costs for product development were primarily associated with a new online loan-origination system.

But the judge ruled these costs appeared to be related to general lending rather than actual transactions.

MTF argued its IT infrastructure was a key point of difference for quick turnarounds on applications.  In supporting its allocation of

news t 50 per cent of wages in 2006, and 55 per cent in 2007 and 2008, MTF criticised the commission’s position as “inaccurate and lacking any basis for challenging MTF’s assertion IT staff were involved in loan establishment”.

The judge, however, accepted the commission’s stance as consistent with close relevance.

The commission accepted other communications costs – such as printing, stationery, paper and postage – were recoverable in principle.

It was ruled indirect computer costs could include depreciation, while the MTF’s claim for 65 per cent of security and storage was permitted.

However, securitisation and bank costs were ruled as linked with doing business.

The commission submitted the cost of capital wasn’t a genuine accounting cost in the CCCFA, but a notional return.

“It’s difficult to see how

The judge said this meant losses MTF estimated it would incur because of a small group of borrowers who defaulted were recouped by charging fees to a wider pool of borrowers ACCOUNT MAINTENANCE FEES temporarily in default.

Some findings on MTF’s costs To justify its arrears fees, MTF allocated to maintain accounts allocated 100 per cent of these bad were similar to those for debt costs in 2006 and 2007. establishment fees.

But the commission One significant argued they weren’t matter was the “incurred by the company’s bad creditor” as debt expense stated in the The Commerce Commission has centre CCCFA, while abandoned a cross-appeal against part covering equally of a judgement in 2013 that rejected borrowers’ allocating claims MTF and Sportzone breached the defaulting them across Fair Trading Act. on loans all contracts This was in relation to fees charged on 39 credit contracts. and MTF wasn’t a Visit www.autofile.co.nz for being unable to “reasonable more on this story. recover any part of estimate of loss”. such lending.

The judge accepted It averaged out these costs this, but said recovering bad and recouped them via arrears debts through arrears fees could fees even if consumers soon be viewed more fundamentally. remedied defaults.

“The person who pays the fee

any allowance could be made for an accounting item that isn’t an actual cost incurred in establishing any loan and not connected,” the judge said.

More with

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should be the one who caused the loss. Bad debts are a cost of being in the business. [They] should be recovered through the interest rate.”

From 2006-08, MTF also charged establishment fees of $190 for each contract, but the commission argued that on the close relevance test they wouldn’t have exceeded $23.60, $38 and $36 in each year.

The commission disallowed but then accepted bank costs on account fees, while 70 per cent of software maintenance was allowed but MTF’s treasury costs were ruled out.

In regards to customer service and dealer support, both parties agreed 12 per cent for 2006 and 2007, and 10 per cent for 2008, while 30 per cent of Motochek costs were reasonable.

The judge disallowed recovering securitisation, bank and capital costs for maintenance fees, and both parties agreed on five per cent recovery for arrears fees.

As a vehicle importer you know time is money, so we’ve made it a lot easier to get a Statement of Compliance for any imported light vehicle that was manufactured for the European market and first registered in either Japan or UK. Because of our association with DEKRA SE, one of the world’s leading experts in vehicle testing, inspection and certification, your Statement of Compliance requests can be processed overnight to speed up the process and make sure you receive a response within just three working days.

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www.autofile.co.nz | 11

industry profile

Award with feel-good factor F

or the past eight years, Mike Walsh has set many goals and has scored a winner with VTNZ being recognised as best company in New Zealand to work for.

The vehicle inspection business went one better than 2013 by taking out the top gong at the IBM Kenexa Best Workplaces Awards at last month’s black-tie ceremony in Auckland.

“It’s tremendous for the company to receive this recognition,” he says. “When I became chief executive about 10 years ago, my aim was for VTNZ to be the best place to work.

“It has taken a while, but this award doesn’t mean it’s the end of the road because the process is ongoing.

“You cannot be a great company without great people.

You cannot expect employees to provide excellent service if they don’t feel good about who they work for and what they do.”

VTNZ’s recipe for success is about creating an environment where employees feel valued, and are provided with challenges and opportunities to better themselves while having some fun.

The award has taken plenty of hard graft by Walsh, his managers and team, but having people happy in their jobs brings a high level of

Mike Walsh, chief executive of VTNZ, getting his hands dirty

customer service, which in turn creates competitive advantages.

“We are consistent in our approach to leadership, have twoway communication and ensure our managers play their parts,” explains Walsh.

“Completing an annual engagement survey is important in establishing what we can do better.

This needs to be a done on a team basis whereby we all work on things and set about doing them.”

Creating a good workplace

also requires some culture change and that can take time.

“At the start, we had to challenge our people with what we wanted to do,” he told Autofile.

“It was a case of ‘if you agree and follow us that’s great, but if it doesn’t energise you perhaps it’s time to go’. Leading an organisation means you need to have a hard nose about what you’re trying to achieve.”

Leighton Abbot, of IBM Smarter Workforce for New Zealand,

Behind the wheel Mike Walsh confesses he’s a “closet petrolhead”. He has has raced in the Targa Rally, although he admits his ambitions are probably out of whack with his skills.

“I drove a supercharged Mercedes-Benz CLK AMG with a 5.5-litre V8 engine in Targa events over the past three years.

Unfortunately, I missed out this year, but hope to enter again in 2015.”

His first car was a 1961 white and lime green Volkswagen Beetle and he currently drives a silver grey Toyota Prado VX – “a functional family wagon”.

He adds: “My current dream car is Mercedes’ new AMG GT, which

12 | www.autofile.co.nz

Mike Walsh’s Targa Rally car – a CLK AMG with a 5.5-litre V8

isn’t available here yet. That said, this changes every few months with Porsches, Aston Martins and Ferraris coming to mind.”

One of Walsh’s motorsport highlights was hurtling around Germany’s Nurburgring in a

Porsche Carrera S as a passenger with a former F3000 driver – then having a go himself.

“I wasn’t expecting that to happen and didn’t time myself, but there were plenty of other cars there and no one got past me.”

says VTNZ’s award shows that through clear leadership and communication employees stay motivated and engaged.

“The review of vehicle testing and licensing has stimulated innovation in the business,” he adds. “Increased commitment to its people speaks volumes about how the company has turned a challenge into an opportunity.”

Walsh puts the key to success down to communication and being honest with employees.

“We regularly talk about how the business is going and changes we need to make.

“For example, adapting to the Vehicle Licensing Reform [VLR] will bring change, including making some difficult staffing decisions.

“But we will talk to affected people in an open and honest way because we can’t continue to do same old things in the new VLR environment.”

FIRST ANNIVERSARY ARRIVES November 1 marked one year since Stuttgart-based DEKRA bought 60 per cent of VTNZ. The past 12 months have been about integrating into a global business, which has 

industry profile t involved background, information technology, reporting and human resources work.

“I’ve been surprised by the level of engagement DEKRA has had with us. It’s focused and listens, and out of that comes collaborative results.”

Mercedes-Benz’s AMG GT is Mike Walsh’s dream car – for now Walsh is a member of its executive committee and has a seat at the leadership table as one to learn the culture. They do enjoy of the top 20 managers worldwide. a beer or two.”

The company operates in DEKRA’s senior staff conduct 55 countries and has 32,000 business in English when English employees, so being in the senior speakers are around. management team gives VTNZ “I’ll sometimes surprise them a voice, and his role involves with the German I come out with, overseas travel and working with but most of the time it’s basic DEKRA’s headquarters in Germany. conversational stuff.”

“VTNZ can leverage from the He jokes: “If I were to speak experience of the world’s leading German at meetings, there would automotive testing be potential for it companies. It has to be confusing for world-class technology everyone. That might and products. We’re not be such a good keen to roll out some idea when it comes to here, which is an vehicle safety.” exciting prospect.

PUSHING AHEAD “As part of our last WITH PROJECTS engagement survey, It has been a busy we asked staff what year for VTNZ. It has they thought about upgraded its Rotorua DEKRA owning 60 facility by installing per cent of VTNZ, and a new lane for more than 85 per certificate of fitness cent thought it was inspections because good and could help it’s a very important us become a better part of its network. company.”

“We’ve also Senior members of upgraded our testing DEKRA have also come station in Greymouth here to attend VTNZand have made it hosted leadership earthquake-proof,” forums. enthuses Walsh.

They have included – Mike Walsh “Despite the Clemens Klinke, head VLR, it’s also a key of the automotive site and we had to make it safe division. He’s responsible for about for employees and customers. We two-thirds of global revenues and spent several days meeting Kiwi staff. also needed to make our retail experience consistent with other “Our people in Germany sites.” understand the importance of VTNZ is also in the process of our work and talk about DEKRA relocating its technical training as a family. That philosophy fits centre in Auckland. comfortably with VTNZ.” “Our focus in coming years Walsh has made some inroads will be engaging with customers learning German for his trips to differently. We will be doing more DEKRA’s head office. than vehicle inspections bearing in “I hope to start picking up mind changes coming into effect in lessons again with the Goethe April with the Health and Safety Act. Institute and I’m making an effort

“You can’t be a great company without great people.”

“There will be more focus on companies’ obligations under the act. It’s basically about VTNZ becoming more of a safety partner than a vehicle certification company.”

GOING BACK IN TIME After leaving university, Walsh landed a job with ExxonMobil and stayed there for 19 years.

“I was running the retail fuels businesses in New Zealand. I also worked in different divisions, such as chemicals and industrial lubricants, and went to Australia and the US on short assignments.

“The company provided me

with opportunities and I later moved into leadership roles, which helped me to become a better manager and broaden my skills.

“After achieving everything I wanted to do with ExxonMobil, I decided to do something different and take on new challenges, so I did some consultancy work in Korea for Hyundai Oil Bank in its downstream fuels business.

“It was when I was back in New Zealand that I was approached about my current job.

“It was a great opportunity to add value to VTNZ at a time of change. It has been a journey I’ve enjoyed and it’s far from over.”

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www.autofile.co.nz | 13

new cars

Sedan’s evolution steps up H

onda says its new Civic has more features and style that make it better value for money.

The model line-up has a seveninch touchscreen display audio with compact disc, Bluetooth music and hands-free telephone.

The audio display also features the three-angle reverse camera with parking aid as fitted across Honda’s Accord NT range, while the LN’s system includes navigation.

The marque’s new one-touch indicator technology, which comes as standard, flashes to make three signals when lightly touched and is helpful while making a single lane

change or roundabout exit.

This complements the rain-sensing wipers, automatic headlights and daytime running lights as standard across the range, plus the push-button start and proximity key on the Civic S. The new model takes advantage of easy-to-use ISOFIX child-seat technology by adding two attachment sets in the rear.

The LN takes comfort one step further with an eight-way powered driver’s seat and electric folding mirrors with integrated LED indicator lights.

Chrome and black accents have been added inside and

out, there’s a new honeycomb chrome grille, revised front bumper with a chrome garnish and chrome handles.

There are 10-spoke polished metal and black alloys with 16-inch wheels for the S, which are 17-inch on the LN. The inside of the Civic has a satin black and chrome-plated

finish with the LN having black accents, while the S Sport and LN Sport add dynamic front, rear, side and wing spoilers.

The new Civic is priced the same as the previous model. The S – with a 1.8-litre engine and automatic transmission – costs from $33,900 plus on-road costs, while two-litre automatic LN starts at $39,900.

Honda’s new Civic S Sport

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Fastest electric car T

he final exterior of Detroit Electric’s pure-electric two-seater sports car has been revealed.

The limited-edition SP:01 will be the world’s fastest production electric sports car when it goes on sale.

Revealed as a prototype at the 2013 Shanghai Motor Show, its design has been updated to improve aerodynamic performance.

Its most striking element is the fastback configuration, which replaces the prototype’s flying buttresses on either side of the rear window.

The exterior design has been optimised using computational fluid dynamics analysis to enhance airflow and reduce turbulence.

A large sculptural rear wing and under-body diffuser aim to minimise lift and improve downforce at higher speeds.

Aesthetic and functional changes include the front air intake and bonnet’s outlet ducts being

reshaped to optimise airflow to the heating, ventilation and airconditioning system.

The battery packs have a protective composite casing integral to the vehicle’s structure.

This improves the SP:01’s torsional rigidity and provides a barrier to protect the batteries from punctures in the event of accidents.

The changes aim to ensure it delivers on its promise to set new standards for performance and handling in electric vehicles.

The high-power electric motor means the car has a top speed of 249kph and a 0-100kph time of 3.7 seconds.

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news

Importer looks across the Tasman G

ulliver New Zealand is aiming to use its operations in this country as a springboard into Australia if restrictions there are lifted so higher volumes of used vehicles can be imported.

The company opened its first branch in Newmarket, Auckland, on November 1 with a party for about 50 invited guests.

Ho Choi, corporate officer, told Autofile at the event that its other

overseas strategies have involved buying stock in the US and Thailand before on-selling it in the local market.

“But our New Zealand business is different because we will directly export our stock from Japan.”

He says this country was selected to launch a new business model because the used imports sector is well-integrated, while the company may expand across the Tasman when conditions are right.

“There have been about 25 years or more in importing used cars from Japan and economic growth will be stable here.

“We could have done this New Zealand business five or 10 years ago, but we had to concentrate on our model.

“The industry is suitable with so many people liking many Japanese cars and our business here is the same as other companies.

“We’re not intending to get hold

of market share. We want to be the player that can deliver a good image for Japanese imports to customers so that market grows.”

Yu Nagai, sales and marketing manager, adds Gulliver NZ aims to sell 50 vehicles in its first month, while negotiations have been taking place with finance, warranty and compliance providers.

Visit www.autofile.co.nz for more pictures and news from the opening.

Guests at the opening of Gulliver NZ in Newmarket and, right, a view from outside

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TNZ took out top honours at the IBM Kenexa Best Workplaces Awards, but it wasn’t the only business in the automotive sector to walk away with a gong.

Auckland’s Giltrap Audi won the best small-medium workplace where general manager Gary Periam encourages staff to do business face to face.

He says the approach reduces stress and helps to protect the company’s family culture.

“If I want to talk to somebody, I will ring them because I have a strong thing on verbal dialogue,” he says.

“There’s no use having burnt-out people in our organisation because they are infectious to others.”

Wairarapa’s Eastwood Motor Group was named as the best small workplace.

“All our guys appreciate our livelihoods depend on making this thing work and looking after our customers,” says dealer principal Mike Eastwood. “Every staff

member has pride in what they do.”

He adds the company has many young staff with families, so an emphasis has been placed on ensuring their home time isn’t overrun by work.

Hyundai NZ, Trade Me and AA Insurance were recognised for being finalists for the past five years, while VTNZ also won best enterprise workplace.

The Kenexa survey, run every year by IBM, asks employees to anonymously rate how satisfied they are with their workplace.

Participants graded their workplaces and employers across 12 key categories including leadership, culture, recognition and engagement.

It’s the largest study of workplaces in New Zealand and collects the views of 32,000 members of staff.

Forty-two companies reached finalist status across five employee size categories.

The awards were presented at black-tie ceremony at Auckland’s Langham Hotel on October 23.

news

Dealership goes under cover

A

used car dealership has relocated with its previous site being snapped up by developers for an apartment building.

Cooper Cars has shifted from its yard in Grey Lynn, Auckland, to a warehouse.

“We always knew Grey Lynn would one day be valuable as residential property,” says Mike Mapperson, co-owner of Cooper Cars. “But our new site in Onehunga has fantastic views because we are on the ridgeline.”

The dealership opened on Great North Road in 1983 with “the strip” also home to some big franchises, such as Giltrap Prestige, Auckland City Toyota and John Andrew Ford and Mazda.

The area is going through intensification because it’s so close to the city centre with zoning conditions allowing for apartments to be constructed, so other businesses there may be affected by other new developments over coming years.

Mapperson says the area’s intensification has taken longer than expected, “but I think the global financial crisis held it back by three or four years”.

He and brother-in-law Brian Sullivan are now enjoying the benefits of being in the warehouse since August.

“The customers can come in all weather, and in Grey Lynn we had problems with dust, birds flying overhead and atmospheric contaminants.”

Cooper Cars isn’t expecting to lose customers because of the move with most inquiry coming via the internet, which “makes geography irrelevant”.

The site holds up to 50 vehicles – 40 under cover and 10 outside – and the shift was a swift process.

“We didn’t have the luxury of too much overlap having bought the new site and being ready to move. We had to ask for an extension on our previous site.

We’re here a bit prematurely, so there’s more finishing off to do.”

Despite being able to display

Mike Mapperson

Rick Armstrong

“With dealerships in other centres including Wellington, Christchurch and Dunedin, this provides an Auckland base for other growth opportunities.”

Anthony Kearns, general manager of Auckland City Toyota, adds: “With this expansion, we will continue to be the destination for Toyota customers in and around the eastern suburbs.”

The expanded site will be operational from mid-December.

EXTRA BRANCHES COMING

Garry Moore

One of the country’s fastest-growing dealerships – 2 Cheap Cars – is set for further expansion with four new branches opening in three months.

The winner in the Deloitte’s Fast 50 business awards has been operating for three years.

The company recently opened up a new branch in Botany Road,

Manukau with a Penrose site following this month.

Leases are now being finalised for locations in Lower Hutt and Dunedin to be up and running before Christmas.

General manager Garry Moore says the expansion will see 2 Cheap Cars’ sales increase from about 500 to 800 units per month.

“We’ve been able to expand quickly because we have a business model that’s customer focused,” he says.

“We are a high-volume and small-margin business, so we are competitive when it comes to price.

This only works if you can underpin it with quality products and service.”

By the end of the year, 2 Cheap Cars will have nine branches. The company’s philosophy is to price cars at levels below what it would cost for buyers to import them.

Vehicle Inspection New Zealand more vehicles, Mapperson will keep numbers consistent.

“We’re unlikely to carry more stock. If we stay the same, that will be good. If we drop by 15 per cent, our overheads are lower so it won’t be a worry.”

FRANCHISE DOUBLES SIZE Auckland City Toyota, which was bought by Armstrong Motor Group from the Giltrap Group about six months ago, is expanding its Mount Wellington premises.

The new site will enable the dealership to offer a greater selection of vehicles by effectively doubling its holding capability.

“Auckland City Toyota has been an important acquisition, Toyota is New Zealand’s biggest brand and Auckland is by far the largest market,” says managing director Rick Armstrong.

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Vehicles wanted News in brief dealers Buying now Audi VW

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Flagship sedan sets record for most safety points Hyundai’s Genesis has achieved the highest score in the 21-year history of ANCAP testing – 36.88 points out of a possible 37 to secure a five-star rating.

ANCAP’s assessment includes 64kph frontal offset, 50kph side impact and 29kph pole tests. The whiplash test simulates a 32kph rear-end and 40kph pedestrian impact protection test. A minimum number of active safety assist technologies (SATs) are also needed.

The Genesis’ tally included a frontal offset score of 15.88 out of 16 and a perfect 16 for side impact. It also got two out of two in the pole test and a “good” whiplash rating.

The vehicle, which will be launched here at the start of next year, has advanced high-strength steel in its body structure. All safety features are standard, including autonomous emergency braking and electronic brake distribution, blind-spot detection and adaptive cruise control.

The Genesis boasts daytime running lights, high-intensity discharge headlights with static bending and high-beam assist, pre-safe systems, reversing collision avoidance and a 360-degree around-view monitor.

There’s also a tyre-pressure monitoring system, an active lift – or pop-up – bonnet and nine passenger airbags, including one for the driver’s knees.

GPS signals used to drive concept car around circuit Audi claims to have set a benchmark for autonomous vehicles after its RS 7 completed a Grand Prix lap driverless at racing speed. It took the concept car slightly more than two minutes to get around Hockenheim.

The marque uses corrected GPS signals for on-road orientation with data transmitted to the vehicle via wi-fi.

At the same time, three-dimensional cameras in RS 7, pictured, film the track and a computer compares images to on-board data. This is what makes it possible for the RS 7 to orient itself on the track within centimetres.

Audi says piloted driving is one of its most important development fields with its first successes achieved 10 years ago.

The marque’s driver-assistance systems are installed in the updated A6 and A7 Sportback model series. They include side and active lane assist, and adaptive cruise control with a stop-and-go function.

Transport agency approves two-wheeler for road use An electric bike has been approved for road use after a company in Christchurch lobbied for six years to have it classified as a wheeled recreational device – not a motor vehicle.

The YikeBike can reach speeds up to 23kph and the company is on track to produce at least 1,500 units for overseas distribution over the next 12 months.

Chief executive Lincoln Sell says getting the legal tick in New Zealand will make it easier to push the YikeBike in international markets and locally.

“Often innovation leads to regulation and, while we’ve had something different, it’s a challenge when people aren’t actually allowed to ride.”

The NZTA advises “yikers” can now ride on any road or footpath with a helmet if they follow the same rules as bicycles.

Bank’s rating boosted after reducing non-core assets Fitch Ratings has raised its long-term issuer credit rating on Heartland Bank to BBB from BBB- outlook stable.

It noted the bank’s consistent reduction in non-core assets resulting in improved asset quality and stronger earnings, and that its business model focuses on niche markets in which it has a leading share.

18 | www.autofile.co.nz

new cars

Holden’s SS V Redline

Inspiration from racetrack

T

he 2015 Holden VF Commodore sees the range being refreshed with new features and improved technology.

The SSV Redline’s update is inspired by the racetrack with paddle-shifters mounted on the steering wheel of automatic models.

They allow use of the “active select” function with greater precision without drivers needing to take their hands off the wheel.

Holden has calibrated a revised set-up for the electronic powersteering system, which has an

enhanced feel, precision and smoothness.

The marque has also tuned three steering calibrations for the 2015 VF Commodore, with “touring” in the Evoke, Calais, Calais V, Caprice V. “Sport” appears in the SV6, SS, SS V, while “sport and competitive” are in the Redline.

All variants have five ANCAP safety stars. Systems include lanechange assist, blind-spot monitoring and forward-collision alert.

With the introduction of ISOFIX standards to Australia, the VF is one

of only a handful of cars to have these anchorage points across all three rear seats.

The Redline has split-rim 19inch black alloys as standard, while a gloss-black rear valance has been added to sport sedans.

The SV6 and Calais get a fullsized alloy spare wheel as standard to replace the tyre sealant and air-compressor kit.

HIGHLIGHTS OF MODEL The SSV Redline comes with a six-litre V8 engine and six-speed

gearbox or optional six-speed automatic transmission.

This model has launch control, colour head-up display and Holden’s MyLink infotainment system with an eight-inch colour touch-screen display.

Embedded apps include Pandora, Stitcher SmartRadio and Siri eyes-free mode.

Safety features include automatic park assist, rear-view camera, lane-change assist, blindspot monitoring, forward-collision alert and rear-parking sensor.

Sedan builds appeal VEHICLES WANTED

M

itsubishi’s Lancer is retaining its appeal with private buyers of small sedans with this year being no exception.

In the 12 months to September, the marque says five times more people in this category chose the model than its nearest competitor.

It has now released its 2015 line-up led by the highspecification and rally-inspired GSR with machine-finished black 16-inch alloys.

The GSR’s two-litre 115kW Smart-MIVEC engine and advanced six-speed CVT transmission with sports mode can post fuel-economy figures of 7.3l/100km.

Its mod-cons include six-inch touchscreen audio, reversing camera and climateThe rally-inspired Lancer GSR

control air conditioning with audio and Bluetooth fingertipcontrolled from the leathercovered steering wheel.

The 2015 sedans have seven airbags. Its active and passive safety systems include indicators on the door mirrors and a function that activates hazard warning lights during emergency braking in excess of 55kph.

The leather-upholstered SEi has rain-sensing wipers, dusk-sensing headlights, heated front seats and automatic folding rear-view mirrors.

The Lancer hatchbacks inherit the sedans’ qualities plus a boot area that becomes bigger when the rear seats are folded down.

The GSR retails for $32,990, the SEi starts at $36,990 and the LS is $30,690 – plus on-road costs.

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miles motor group www.autofile.co.nz | 19

Industry movers NZ labour market report KRISTIAN AQUILINA will be the new managing director Holden NZ and Isuzu Trucks from January.

Aquilina, pictured, started off in corporate affairs with General Motors Holden Australia (GMH) where he helped launch the VT Commodore in 1997.

From 2001-03, he was in vehicle sales and marketing, and managed sales for Latin America, Africa and the Middle East, GMH and Dubai between 2003 and 2005.

From 2005-07, Aquilina was the company’s national manager of government relations and public policy before overseeing export sales for a year.

He was marketing manager for large cars, SUVs and light commercials from 2008-13 before being zone manager for Victoria and Tasmania from 2013-14.

Aquilina replaces Jeff Murray, who started as managing director of Holden NZ in 2011 and has been appointed director of sales at GMH in Melbourne.

Visit www.autofile.co.nz for more on Murray, and Gerry Dorizas resigning as chairman and managing director of GMH. MARK MOUNTCASTLE has resigned as chief risk officer of Heartland New Zealand, but will remain with the company until November 30.

Jeff Greenslade, chief executive officer, says Mountcastle has made a significant contribution and has created a strong risk culture in the organisation.

The company has started a recruitment process for a new chief risk officer and expects to announce a successor shortly. In the meantime, chief financial officer Simon Owen has been appointed on an acting basis.

GARY LEECH has retired as a director of Heartland. The board acknowledges his “outstanding contribution” to the company in its formation at the time of the 2011’s merger and by chairing one of the group’s audit committees.

IAN BAARD has been appointed used vehicle manager at John Andrew Mazda in Grey Lynn, Auckland, following Julian Stone becoming dealer principal.

Baard has been promoted into the role having previously been employed in retail sales.

CRAIG BAYLIS has been appointed dealership manager at Continental Cars Peugeot.

He has been promoted from the sales manager’s role at Continental Cars Citroen.

LIZ DOBSON has been elected as president of the NZ Motoring Writers’ Guild for the next 12 months.

She takes over from David Linklater, who had held the position for the past three years.

MARINA JOSEPH is the newest team member at Jerry Clayton BMW. Prior to taking on the role of sales executive, she worked for Peugeot.

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

Many car dealerships across the country are familyowned and are often passed down to the next generation.

But succession is something that shouldn’t be taken lightly – it needs to be planned, according to a report published with PwC’s latest family business survey.

The professional services network says owners of family businesses in New Zealand need to innovate, attract the right skills and differentiate themselves to stay successful.

Their turnovers are smaller on average compared to overseas because this is a relatively young country.

New Zealand also has a lot more family members who are chief executives and managing directors, which shows more Robbie Gimblett Kiwis are running family businesses as opposed to governing them.

Another interesting point is more than half are run by people aged 55 or over – nearly one-third higher than the global average.

The top three key internal issues in PwC’s survey are staff recruitment at 79 per cent, followed by business development and finance availability on 21 and 19 per cent.

As for external issues, market conditions and economic uncertainty lead the way on 53 per cent with competition on 36 per cent and exchange rates on 34 per cent.

The most important priorities cited are to remain in business and improve profitability. Next come factors that will make this happen with the “heart issues” of family and community coming in lower than prior years.

But too many family businesses have still not fully grasped the issue of succession with 57 per cent saying they have plans in place for some, if not all, senior roles.

Kiwis are also leaving it until

later on in life with just 17 per cent saying they have robust and documented succession processes in place.

“A plan that isn’t set out in writing is not a plan, it’s an idea,” says Robbie Gimblett, PwC’s private business market leader.

“This is an issue family firms must address because without it enterprises are at stake. This red flag is creating unnecessary exposure for families and their businesses – and shouldn’t be ignored.

“Just over half of respondents have a shareholder agreement and procedures in place for measuring and appraising performance, meaning the other half do not.

“Even more than half surveyed have no procedures in place in the event of incapacity or death of a family member or conflict resolution mechanisms.

“We encourage people to address these risks and formalise planning to protect their businesses for the future.”

Gimblett says owners of family businesses need to innovate, attract the right skills and differentiate themselves if they want to remain successful.

Seventy-four per cent have grown in the past year compared with 65 per cent globally.

Ninety-four per cent are aiming to expand over the next five years compared to 85 per cent of global respondents – and all of those predicting growth are confident of achieving it.

“New Zealand family businesses are growing and this trend will continue, with Kiwis more bullish and their outlook more positive, which isn’t unexpected given recent economic success,” says Gimblett.

“To achieve future growth, they will need to focus on furthering innovation, differentiating themselves and acquiring better talent.”

Online packages for motor vehicle dealers

CAR CARDEALERS DEALERSQ&A Q&A

In aInnutshell, what areare these changes all about? a nutshell, what these changes all about?

by Darren Wiltshire head of Trade Me Motors

There are price increases for some of our kicking in onin1on November, and and some decreases too. too.

Please There are price increases for some of products our products kicking 1 November, some decreases Please havehave a look at the raterate cardcard we’ve put together.

Many dealers whowho use use multiple Trade Me Motors products a look at new the new we’ve put together.

Many dealers multiple Trade Me Motors products are set lessless under the new pricing. are to setpay to pay under the new pricing. any car dealers make the most of them. Our are always developing ways to customers with added using Trade Me conversations with traders have improve.

If you have features or We’re alsoalso set to three newnew packages: Basic, Torque and and Turbo.

We spent timetime meeting withwith dealers We’re setintroduce to introduce three packages: Basic, Torque Turbo.

We spent meeting dealers confidence to purchase a car Motors will now be helped to shape the packages – products you would like to see while having total piece of mind, around the country and talking to them about new product packages that they would like us to offer. around the country and talking to them about new product packages that they would like us to offer. paying less under a new pricing and we believe they are useful us consider, please let us know. and MotorWeb integration structure that came into effect and great value.

Over the past year, all vehicle changes are in the pipeline.

When do do thethe changes kickkick in? in?

When changes on November 1.

Any traders with questions dealers have been moved to our Trade Me Motors’ support and We have introduced three about the changes and packages application programming interface account management teams now 1 November 2014.

Of course, if you’re still still inside the minimum period of your contract these changes will not 1 November 2014.

Of course, if you’re inside the minimum period of your contract these changes will not new packages – basic, torque should get in touch with their (API), which increases updates to have more people in them, so we affect you you untiluntil the end of the termterm as agreed.

(Please see see the terms and and conditions of your contract if if affect the end of minimum the minimum as agreed.

(Please the terms conditions of your contract you and thinkthink this this applies to you.) turbo – after meeting with you applies to you.) account manager or customer the motors section from four hours can provide a more effective service. motor vehicle traders around support team on 0800-428-862. to every 15 minutes.

We are also looking for more the country and talking to them We also have a number of Safety ratings have been technical people to deliver new Why have youyou introduced packages?

Why have introduced packages? about product packages they other improvements on the included to improve data and and enhanced products quicker would to online. horizon totomake it the easier buy better search functionality We have a like lotaofus and and we want our dealers make most of them.

Our Our conversations withwith dealers We have lotproducts of offer products we want our dealers to make thetomost of them. conversations dealers than we’ve been capable of shaped the packages we’re aiming for them to betouseful andinclude greatgreat value. shaped the and we’re forsell them be useful and value.

There arepackages price and increases for aiming and vehicles.

These makes finding vehicles easier. An doing in the past. some of our products, but there improved reporting, ways to upgraded dealer resource centre are some decreases too. differentiate dealerships and will me be released QUESTIONS & ANSWERS Where cancan I find out more about which package might suitsuit me best?

Where I find out more about which package might best? soon.

We have a lot of products better search functionality.

We’ve also invested in Q: Why have the new packages available and want dealers to Trade Me is innovative and we MotorWeb to provide dealers’ been introduced?

ThisThis graphic is a is good place to start. graphic a good place to start.

A: Trade Me Motors wants its dealers to make the most of its products.

We are aiming for them to be Features Features useful and great value.

M

Packages Packages

Q: Where can I find out more information?

A: We will be updating our website soon. Get in touch with your account manager to find out more in the meantime.

Advertising FeesFees Advertising DealerBase DealerBase 0800 support 0800 support PricePrice Compare Compare

Q: Do I end up on a package if I stay on listings only?

A: Dealers who do this go onto the basic package. All products can also be bought separately.

AutoAuto Response Response SiteLink SiteLink Showroom Showroom Extended Showroom Extended Showroom

Q: Why should I sign up to a torque or turbo package?

A: They are excellent value for many dealers. We have a range of premium products many already use, but these packages make it easier to purchase them – and at better prices.

DataData Export Export Subtitle Subtitle MotorWeb VIRsVIRs MotorWeb ( Amount varies depending on listing ) ( Amount varies depending on package* listing package* ) *25 VIRs vehicle limit oflimit 10 toof75 *25forVIRs for vehicle 10 to 75 *50 VIRs vehicle limit oflimit 100of or100 above *50forVIRs for vehicle or above Page 1Page of 2 1 of 2

Most popular car makes searched*

October

statistics

1 Toyota 2 Nissan 3 Ford 4 BMW 5 Holden

Most popular car models searched*

1 Hilux 2 Falcon 3 Corolla 4 Commodore 5 Golf

Most popular body styles searched*

1 RV/SUV 2 Sedan 3 Station wagon 4 Hatchback 5 Ute

Most popular makes of motorbike searched*

1 Honda 2 Harley-Davidson 3 Suzuki 4 Yamaha 5 Kawasaki

A Porsche Panamera Turbo S Turbo PDK has been listed for $219,990.

The 4.8 litre sedan boasts 419kW and has travelled only 14,000km.

It features tyre-pressure monitoring, sport chrono package, dynamic chassis control and torque vectoring.

*in October on Trade Me Motors

www.autofile.co.nz | 21

disputes

Vehicle offer and sale agreement failed to list faults at time of purchase Background Arash Armand bought a 2005 Honda Edix from Penrose Enterprises Ltd for $10,100 on December 19, 2013.

He claimed its starter motor was faulty and the trader failed to repair it within a reasonable time in breach of the Consumer Guarantees Act (CGA).

The buyer applied to the tribunal for an order that the dealer pay for the starter motor, charges to tow the multi-purpose vehicle to a repairer and the cost of a parcel tray he said the trader promised to supply.

The dealer had offered to pay for the starter and towing, which came to $336, but denied it promised to provide Armand with a parcel tray for the car.

The main issues raised by this application were whether the trader promised the buyer a tray and, if so, what was the cost of a second-hand one.

Section six of the CGA imposes on a supplier a guarantee that the goods are of acceptable quality.

“Acceptable quality” means they must be fit for purpose, acceptable in appearance and finish, free from minor defects, safe and durable.

Factors taken into account include the nature of the goods, price, statements made on any packaging or label, any representation about the goods made by the supplier or manufacturer, and other relevant supply issues.

When goods are displayed for sale or hire, defects to be treated as having been specifically drawn to the consumer’s attention should be disclosed on a written

notice displayed with the goods.

Goods will not fail the guarantee of acceptable quality if they have been used in a manner or to an extent that’s inconsistent with what a reasonable consumer expects to obtain from them and they would have complied with this guarantee if they hadn’t been used in that way.

The case Armand test drove the vehicle before agreeing to buy it when the Japanese import had 93,645km on its odometer.

His negotiations for the purchase were with a salesman, who the tribunal was told had since died.

Armand said he pointed out a number of problems at the time of sale – the starter motor was faulty, the driver’s mirror didn’t retract, the CD player didn’t work and there was no parcel tray in the vehicle.

He said the salesman promised the trader would fix each item, but they were excluded from the vehicle offer and sale agreement (VOSA) the parties signed and there was no separate promise sheet.

Armand gave evidence that he returned the car to the dealer in January 2014 and again in April to have the starter motor, mirror and CD player fixed.

The trader’s records showed the vehicle was returned on January 17 because the mirror wasn’t retracting, there were faults with the passenger’s window, a door lock and the CD player, and the brakes were noisy.

By April, the dealer appeared to have fixed most problems except for the brakes and starter motor.

The trader sent the vehicle to Church Street Motors & Tyres, which charged the dealer $180 to replace the brush set and a solenoid.

But that work on April 4, according to Armand, didn’t cure the fault with the starter motor and he continued to experience problems with it until it failed on July 7.

He had the vehicle towed to a friend in Kelston at a cost of $60 and bought a second-hand starter from Strong for Honda on July 7 for $276, which his friend fitted for him without charge.

Mr R Giri, the trader’s business manager, agreed to refund Armand with the cost of the starter motor and his towing fee – a total of $336 – but said the dealer disputed any liability to provide a parcel tray.

Armand said the salesman promised him the trader would supply a tray as soon as it received one from another vehicle from Japan.

This – like the other promises made to repair the car’s faults, the tribunal noted – wasn’t recorded on the VOSA or on a promise sheet.

Although Armand took four witnesses to the hearing, none of them gave evidence of being present when he negotiated the purchase of the vehicle or overhearing the salesman making any pledges.

Armand produced copies of emails and text messages he had sent to the dealer about providing the tray, which the trader didn’t respond to.

Giri, who told the tribunal he hadn’t started working for

r said his The case: Ther buye was faulty and

car’s starter moto the dealer failed to repair it within a reasonable time. The trader paid for a new part and towing fees, but claimed it didn’t promise to supply a parcel tray for the Honda Edix.

n: The tribunal The decisiotrade r hadn’t

considered the fulfilled its promise within a reasonable time and the buyer was entitled to a second-hand tray. r Vehicle Disputes At: The Motoland .

Tribunal, Auck

the dealer until after Armand purchased the vehicle, said that the buyer was told by the trader that “when a car comes in with a parcel tray, we will give it to you”.

He added the trader hadn’t supplied Armand with a tray yet because one hadn’t come into its possession from its purchase of other Honda Edixes, of which the dealer had imported four in the past year.

The finding The tribunal considered the trader’s salesman had promised to provide the buyer with a parcel tray for the vehicle.

The pledge was probably not specific as to when the dealer would perform its promise.

The tribunal considered the trader hadn’t fulfilled its pledge within a reasonable time and the buyer was now entitled to be provided with a second-hand tray.

It understood from a conference call made to Strong for Honda during the hearing that they were available for purchase from time to time from the company for $175 plus GST or $201.

Order The tribunal ordered the trader to pay $537 to the buyer for a second-hand tray, starter motor and towing charges.

GET THE LATEST IN AUTOMOTIVE NEWS 22 | www.autofile.co.nz

disputes

Car ruled to be durable after claim lodged 14 months from date of supply Background Helen Avison bought a 2007 Ford Focus for $14,000 from Allkar Sales on January 31, 2013.

She rejected it because she claimed its power-steering unit was faulty, the vehicle had a vibration and she had lost confidence in the car.

The buyer wanted the tribunal to uphold her rejection and order the trader to refund her purchase price.

The dealer said the power steering’s control module unit had been replaced and there was nothing wrong with the steering.

It added any vibration caused by a worn engine mount didn’t fail the guarantee of acceptable quality under the Consumer Guarantees Act (CGA).

The case The six-year-old Ford Focus had 109,213km on its odometer when supplied and Avison bought an Autosure mechanical breakdown insurance policy for $1,199.

She traded in a 2003 Nissan Pulsar for which she received a credit of $2,642 and financed the balance of the price with a collateral loan from Motor Trade Finance Ltd over 60 months.

Avison used the car for 11 months without any problems being diagnosed.

In December 2013 or January 2014 – she was unsure when – a warning light lit up on the instrument cluster.

But she didn’t do anything about it until March when she took the vehicle back to the trader after the steering became heavy.

The trader recommended she have it investigated and repaired using her Autosure policy.

Avison took the car to Westech Automotive Northland, which replaced a power-steering control module with a second-hand one when the odometer was on 121,086km – or 11,873km more than at the date of sale.

She said the warning light continued to light up on the instrument panel although the steering didn’t fail.

The vehicle was then sent to Auto Tech Northland in late March. It fitted a new powersteering pump and control-module assembly before it was returned to Avison on April 4.

Auto Tech’s invoice of April 14 sent to Autosure noted that after the new module was fitted, a communications fault code returned three more times, but was no longer present after numerous road tests and use by the owner for two weeks.

Avison went to the Citizens Advice Bureau in Whangarei and, on April 4, it sent the trader a letter rejecting the vehicle claiming the failure of the power-steering system was one of substantial character.

She said the car started to vibrate in April 2014 and she took it to Pacific Motor Group, a Ford franchise agent, which told her the problem could be caused by a faulty engine mount.

Avison didn’t have the mount replaced and provided no technical reports to show the vehicle had any faults.

Her husband infrequently drove the car, but soon after she had bought it he noticed the accelerator didn’t immediately respond, and there was a lag between depressing the accelerator and the vehicle responding.

He added neither he nor

his wife had that matter investigated by their mechanic.

Mr B Lambert, director, said the first the trader heard of the steering fault was in March 2014 although Avison claimed the problem arose in December 2013.

He said it was fixed by Westech Automotive in March and he was surprised this issue wasn’t drawn to Westech’s notice by Avison when she had the company service the car on January 7 and issue a warrant of fitness (WOF) for it on February 3.

Lambert understood a new power-steering pump and controlmodule assembly were fitted by Autotech under the Autosure policy around March 25.

He said that to date the vehicle hadn’t been faulty, Avison was still driving it and it had now travelled more than 128,000km according to the buyer – or 19,000km since it was sold.

The trader said it was willing to trade Avison out of her car, but her requirements for that were unreasonable.

The finding The first issue the tribunal had to determine was whether the vehicle complied with the CGA’s guarantee of acceptable quality at the time of sale.

It took into account the car was six years old and New Zealand-new with 109,213km on its odometer when purchased for $14,000.

The vehicle appeared to the tribunal to have been free of minor faults when it was supplied because it was sold with a new WOF and Avison didn’t contact the trader to express any dissatisfaction until 14 months

The buyer wanted The case:Ford Focus because

to reject her she claimed its power steering was faulty and the car vibrated.

The trader said its control module unit had been replaced, there was nothing wrong with the steering and any vibration that existed wasn’t a failure under consumer legislation.

n: The tribunal The decisio the dealer that the

agreed with vehicle didn’t lack durability and rejected the application. r Vehicle Disputes At: The Motongar ei.

Tribunal, Wha

after buying it in March 2014.

By that time, she had travelled 11,873km in the car and it passed another WOF in February 2014.

The matter the tribunal had to decide was whether it was as durable as a reasonable consumer buying a vehicle of this age, mileage and price would regard as acceptable.

Having regard to the moderately high mileage it had travelled when it was supplied and the fact Avison drove a further 11,873km in the 14 months after buying it from the trader, the tribunal wasn’t persuaded the car lacked durability.

On the advice of its assessor, it considered power-steering components could fail in a vehicle of this type at any time after 120,000km of use over a seven-year period, so Avison’s experience didn’t establish the Focus lacked durability.

The vibration she said now existed – and which she said was probably due to an engine mount – was also a function of an ageing and moderately high-mileage vehicle. It didn’t indicate the car lacked durability.

Order The buyer’s application to reject the vehicle was dismissed because the tribunal didn’t consider it failed to comply with the CGA’s guarantee of acceptable quality.

Subscribe for FREE to Autofile Online and get up-to-date industry news PLUS access to the Autofile industry directory www.autofile.co.nz/subscribe

O

N

L

I

N

E

www.autofile.co.nz | 23

he

co

8910

2013: 7962

 11.9%

NEW: 143

253

Used:

5460

Total Used Imported Cars

11,105

2013: 8545 Thames

c t o b er 2 0 14

Whangarei 2013: 126  13.5% 2013: 144  75.7%

NEW: 4299 Used:

Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napie r New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Tim aru Oamaru Dunedin In vercargil l Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napie r New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland O Hamilton Thames Tauranga Rotorua

try

Total New Cars

d

un

Aroun

Whangarei tAuckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington

NEW: 44 USED:

58

2013: 50

NEW: 296

Auckland  12.7% 2013: 4320  26.4%

USED:

466

USED:

NEW: 45 USED:

NEW: 73

NEW: 1 Used:

NEW: 6 Used:

25

8

187

50

Napier

NEW: 178

Wanganui 2013: 47  10.6% 2013: 59  23.7%

USED:

202

53

USED:

Nelson 2013: 65  12.3% 2013: 127  47.2%

2013: 34

2013: 147

2013: 45 2013: 20

NEW: 623

2013: 557

USED:

2013: 729

811

Blenheim NEW: 48

Westport 2013: 4  75.0% 2013: 7  14.3%

USED:

63

2013: 50 2013: 43

Christchurch NEW: 1888

Greymouth 2013: 16  62.5% 2013: 22  13.6%

USED:

Timaru

NEW: 55 USED:

Oamaru NEW: 11 USED:

Dunedin

NEW: 192 USED:

Invercargill NEW: 100 USED:

2013: 41

2013: 173

Wellington

125

300

2013: 90

25

2013: 9

92

1528

2013: 45 2013: 78

2013: 1570 2013: 1185

2013: 216

 20.3%  28.9%

 22.2%  17.9%

 22.2%  4.2%

 17.8%  38.9%

 90%  21.4%

2013: 103

Mechanical Breakdown Insurance Payment Protection Insurance Motor Vehicle Insurance s

“The best protection for your customers” www.autosure.co.nz 0800 267 873 24 | www.autofile.co.nz

 2.9%  37.4%

 15.6%  165.0%

 4.0%  46.5%

Loan Equity Insurance

 9.8%  47.1%

 11.8%  11.2%

2013: 24

2013: 163

 56.9%  50.0%

2013: 76

Masterton NEW: 52

 9.6%  60.7%

2013: 51

114

Gisborne

Palmerston North NEW: 212 2013: 217  2.3% Used: 271 2013: 229  18.3%

Used:

2013: 290

NEW: 80

New Plymouth NEW: 133 2013: 119  11.8% Used: 159 2013: 147  8.2%

73

2013: 270

Rotorua

Hamilton NEW: 389 2013: 424  8.3% Used: 782 2013: 495  58.0%

Used:

 32.3%  16.0%

2013: 65

Tauranga

2013: 3815

NEW: 42

 30.0%

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Imported Passenger Vehicle Sales by Make - October 2014

Imported Passenger Vehicle Sales by Model - October 2014

Oct '14

Oct '13

+/- %

Oct '14 Mkt Share

2014 Total

2014 Mkt share

Toyota

2638

2006

31.5

23.8%

25114

Nissan

2110

1554

35.8

19.0%

Mazda

1726

1535

12.4

Honda

1085

882

Suzuki

691

Subaru

Oct '14

Oct '13

+/- %

Oct '14 Mkt Share

2014 Total

2014 Mkt share

Swift

568

405

40.2

5.1%

5334

5.0%

Nissan

Tiida

528

420

25.7

4.8%

5710

5.4%

16.2%

Mazda

Axela

504

416

21.2

4.5%

4895

4.6%

11103

10.5%

Mazda

Demio

377

393

-4.1

3.4%

4275

4.0%

6.2%

6431

6.1%

Subaru

Legacy

292

233

25.3

2.6%

2475

2.3%

34.3

4.7%

4354

4.1%

Honda

Fit

291

305

-4.6

2.6%

3462

3.3%

262

74.4

4.1%

4316

4.1%

Mazda

Atenza

278

256

8.6

2.5%

2435

2.3%

427

303

40.9

3.8%

3804

3.6%

Toyota

Vitz

272

204

33.3

2.4%

2481

2.3%

Mitsubishi

408

317

28.7

3.7%

3929

3.7%

Volkswagen

Golf

254

194

30.9

2.3%

2301

2.2%

Mercedes-Benz

228

159

43.4

2.1%

1808

1.7%

Toyota

Corolla

240

245

-2.0

2.2%

2673

2.5%

Audi

207

149

38.9

1.9%

2101

2.0%

Toyota

Wish

236

201

17.4

2.1%

2731

2.6%

Ford

131

105

24.8

1.2%

1206

1.1%

Mitsubishi

Outlander

201

106

89.6

1.8%

1601

1.5%

Volvo

72

64

12.5

0.6%

622

0.6%

Honda

Odyssey

198

131

51.1

1.8%

1763

1.7%

Hyundai

61

21

190.5

0.5%

379

0.4%

Mazda

Mpv

193

215

-10.2

1.7%

1988

1.9%

Chevrolet

43

61

-29.5

0.4%

498

0.5%

Toyota

Estima

184

132

39.4

1.7%

1480

1.4%

Mini

38

26

46.2

0.3%

368

0.3%

Nissan

Dualis

178

40

345.0

1.6%

1071

1.0%

Land Rover

29

31

-6.5

0.3%

297

0.3%

Mazda

Premacy

168

118

42.4

1.5%

1436

1.4%

Lexus

28

16

75.0

0.3%

398

0.4%

Nissan

Note

153

114

34.2

1.4%

1790

1.7%

Jaguar

26

34

-23.5

0.2%

356

0.3%

Nissan

Bluebird

148

129

14.7

1.3%

1303

1.2%

Holden

25

20

25.0

0.2%

249

0.2%

Nissan

Skyline

145

53

173.6

1.3%

1104

1.0%

Peugeot

21

10

110.0

0.2%

140

0.1%

Toyota

Ist

129

145

-11.0

1.2%

1459

1.4%

Daihatsu

16

24

-33.3

0.1%

160

0.2%

Nissan

March

127

155

-18.1

1.1%

1419

1.3%

Dodge

15

7

114.3

0.1%

135

0.1%

Nissan

Murano

124

61

103.3

1.1%

1103

1.0%

Austin-Healey

14

0

1400.0

0.1%

16

0.0%

Toyota

Blade

118

61

93.4

1.1%

1035

1.0%

Porsche

14

9

55.6

0.1%

121

0.1%

Honda

Accord

110

105

4.8

1.0%

1259

1.2%

Chrysler

6

9

-33.3

0.1%

54

0.1%

Bmw

320i

109

63

73.0

1.0%

1064

1.0%

Fiat

5

4

25.0

0.0%

35

0.0%

Nissan

Teana

106

106

0.0

1.0%

1152

1.1%

Jeep

5

9

-44.4

0.0%

61

0.1%

Toyota

Avensis

103

97

6.2

0.9%

969

0.9%

Alfa Romeo

4

4

0.0

0.0%

43

0.0%

Honda

Stream

102

91

12.1

0.9%

1018

1.0%

Citroen

4

1

300.0

0.0%

31

0.0%

Toyota

Auris

102

65

56.9

0.9%

1221

1.2%

Kia

4

2

100.0

0.0%

31

0.0%

Honda

Crv

99

59

67.8

0.9%

950

0.9%

Plymouth

4

3

33.3

0.0%

20

0.0%

Mitsubishi

Colt

97

100

-3.0

0.9%

1121

1.1%

Pontiac

4

2

100.0

0.0%

29

0.0%

Toyota

Rav4

96

63

52.4

0.9%

903

0.9%

Renault

4

13

-69.2

0.0%

57

0.1%

Toyota

Mark X

93

44

111.4

0.8%

914

0.9%

Smart

4

0

400.0

0.0%

21

0.0%

Toyota

Caldina

92

71

29.6

0.8%

925

0.9%

Others

34

34

0.0

0.3%

403

0.4%

Others

4090

2949

38.7

36.8%

37125

35.0%

11,105

8545

30.0

100.0%

105,945

100.0%

11,105

8545

30.0

100.0% 105,945

100.0%

Make

Make

Model

23.7%

Suzuki

20122

19.0%

15.5%

17133

23.0

9.8%

484

42.8

517

385

Bmw

457

Volkswagen

Total

Total

VAluE. 26 | www.autofile.co.nz

Fixed

www.heiwa-auto.co.nz

Used car imports hit 100k U

sed imported passenger vehicles broke through the six-figure barrier last month to reach year-to-date sales of 105,945.

There were 11,105 units sold in October, which was a 30 per cent increase over the same month last year when 8,545 were registered.

Three models are leading the way. Nissan’s Tiida now has a market share of 5.4 per cent with 5,334 sales so far this year.

Next up is the Suzuki Swift on five per cent followed by Mazda’s Axela on 4.6 per cent.

Gregg Nelson, of Value Buy Cars in Motueka, which is the second largest centre in the Tasman region after Richmond, told Autofile business has been good.

“That’s being reflected in the fact that there’s some certainty in the government and the favourable exchange rate, but that has been trending down a bit,” he says.

“We just sell stuff that’s priced less than $10,000 to transients and the local population.

“We’re coming into the haymaking season and will be selling 40 vehicles a month over the next four to five months.

“We offer guaranteed buybacks, so we’re almost like a hybrid rental car company and that’s working out to be pretty popular.”

Nelson says backpackers historically fly into Christchurch, get on a Kiwi Experience bus and end up in Tasman where there’s plenty of seasonal work.

“They like to work during the week and play on the weekends,” he says. “They want to explore every nook and cranny, so they pool together to buy a station wagon or van.

“The biggest problem I have

isn’t getting customers, but finding the cars. A lot of them are budget-conscious purchasers and some are well-healed, so a lot of the stock under $10,000 suits these types of buyers.”

Nelson has good relationships with rental vehicle suppliers and franchises, so his dealership is pricing cars all over New Zealand.

“A lot of business is based on referrals,” he says. “People have endorsed us through the community. They tend to be slow decision makers and take a lot of

“But there’s enough inquiry around and we are still tracking where we need to be in terms of targets.”

Baard says the Mazda 6 and 3 have been going well, while a lot of people are also in the market for CX7s and CX5s.

“It’s just across the board with families with two children tending to look at SUVs or the Mazda 3.

“We get the odd executive who is after a Mazda 6 and needs a fairly large car to make a decent impression. Nine times out of 10,

Used Imported Passenger Registrations - 2012-2014 12500 11500 10500 9500 8500 7500 2012 2013 2014

6500 5500 Jan Feb Mar Apr May Jun

caution throughout the process.

“What we do is educate them on what they need and how long they can drive for.

“We also take a lot of our tourists on drives to explain to them the nature of driving in this country and we also put ‘keep left’ stickers on the dashboards of our vehicles.”

Ian Baard, used vehicle sales manager at John Andrew Mazda in Grey Lynn, Auckland, says trade has been “fairly steady” with the week leading up Labour Day weekend and the school holidays going quiet.

Jul Aug Sep

Oct Nov Dec

the Mazda 6 is being used as a work vehicle.”

Finance hasn’t been phenomenal, but it’s ahead of where the business needs to be.

“It’s running at the same rate if not a little better,” says Baard.

“Out of every 10 people, there are one or two people who won’t get approval.”

Ryan Durry, director of Quay Cars in Nelson, has been working in the motor trade for 15 years.

His business specialises in small cars, station wagons, vans and four-wheel-drives priced at less than $20,000.

fee with no hidden costs

He says: “School holidays generally slow down, but our past eight months have been incredibly strong. Good quality stock is part of it.

“Overall with sales, we would be from this point in time up 15 per cent on last year.

“The people weren’t really around last month and we have seen drops in our internet inquiry through our Autobase dashboard.

“I think it’s harder now. I saw some Mitsubishi Outlanders online and mine were $3,000 or $4,000 out compared to what some guys were selling them for in Auckland.

“I’m wondering how they are actually doing it – they must be pretty low-quality imports.”

On the market generally, Durry believes if Japanese-owned entrant Gulliver New Zealand “does it properly, it will have a huge effect on the market”.

He adds that 2 Cheap Cars is expanding “big time” and it will be interesting to see the “big arm wrestle” because prices throughout the country will have to be on par.

“We have got rent and wages to pay, so we need to make a decent profit per vehicle,” says Durry, who spent some time in the past working for Subaru Melbourne.

“Something has got to give.

We’ll have to have smaller profit margins or specialise, and it will be very hard for dealers to make a half-decent profit out of a vehicle.

“Being a smallish company, I think we can change tack a little bit if need be.

“We also provide protection through 12-month Protecta warranties as well as AA appraisals.

“We haven’t had too many buyers who haven’t been approved – only some really bad apples.”

Greg Bardsley

0279 363 595 greg@heiwa-auto.co.jp

Jason Robb

027 413 3222 jason@heiwa-auto.co.jp

www.heiwa-auto.co.nz www.autofile.co.nz | 27

new car sales New Passenger Vehicle Sales by Make - October 2014 Make

Oct '14 Mkt Share

2014 Total

16.1

26.9%

12661

1.8

10.8%

8471

Oct '14

Oct '13

+/- %

Toyota

2395

2063

Holden

966

949

New Passenger Vehicle Sales by Model - October 2014 2014 Mkt share

Make

Model

Oct '14

Oct '13

+/- %

Oct '14 Mkt Share

2014 Total

2014 Mkt share

16.7%

Toyota

Corolla

1257

963

30.5

14.1%

5095

6.7%

11.2%

Toyota

Yaris

438

325

34.8

4.9%

1966

2.6%

Hyundai

673

536

25.6

7.6%

6576

8.7%

Holden

Commodore

294

357

-17.6

3.3%

2553

3.4%

Ford

667

824

-19.1

7.5%

5911

7.8%

Suzuki

Swift

266

201

32.3

3.0%

2245

3.0%

Mazda

621

514

20.8

7.0%

5534

7.3%

Toyota

Rav4

263

276

-4.7

3.0%

1962

2.6%

Mitsubishi

427

368

16.0

4.8%

4429

5.8%

Holden

Cruze

243

121

100.8

2.7%

1479

2.0%

Suzuki

373

315

18.4

4.2%

4059

5.4%

Toyota

Highlander

243

78

211.5

2.7%

1568

2.1%

Nissan

336

216

55.6

3.8%

3976

5.2%

Mazda

Mazda3

233

172

35.5

2.6%

2025

2.7%

Honda

317

278

14.0

3.6%

3016

4.0%

Ford

Focus

230

180

27.8

2.6%

1486

2.0%

Volkswagen

307

286

7.3

3.4%

3408

4.5%

Honda

Jazz

218

97

124.7

2.4%

1508

2.0%

Kia

244

215

13.5

2.7%

2496

3.3%

Mazda

Cx-5

211

172

22.7

2.4%

2015

2.7%

Bmw

199

165

20.6

2.2%

1801

2.4%

Hyundai

ix35

181

153

18.3

2.0%

1617

2.1%

Audi

173

121

43.0

1.9%

1775

2.3%

Hyundai

Santa Fe

173

83

108.4

1.9%

1599

2.1%

Subaru

154

114

35.1

1.7%

1501

2.0%

Mitsubishi

Outlander

159

143

11.2

1.8%

1331

1.8%

Mercedes-Benz

134

151

-11.3

1.5%

1572

2.1%

Volkswagen

Golf

149

141

5.7

1.7%

1512

2.0%

Jeep

132

104

26.9

1.5%

1109

1.5%

Mazda

Mazda2

112

75

49.3

1.3%

663

0.9%

90

92

-2.2

1.0%

841

1.1%

Mitsubishi

Lancer

112

116

-3.4

1.3%

1368

1.8%

Ssangyong Skoda

85

74

14.9

1.0%

735

1.0%

Holden

Captiva

111

165

-32.7

1.2%

1873

2.5%

Peugeot

79

78

1.3

0.9%

915

1.2%

Nissan

Qashqai

106

44

140.9

1.2%

1213

1.6%

Mini

61

50

22.0

0.7%

472

0.6%

Holden

Barina

105

56

87.5

1.2%

795

1.0%

Dodge

58

39

48.7

0.7%

469

0.6%

Holden

Trax

98

80

22.5

1.1%

657

0.9%

Land Rover

56

40

40.0

0.6%

734

1.0%

Toyota

Camry

97

160

-39.4

1.1%

706

0.9%

Fiat

55

26

111.5

0.6%

409

0.5%

Mitsubishi

Asx

90

47

91.5

1.0%

815

1.1%

Lexus

55

56

-1.8

0.6%

462

0.6%

Ford

Kuga

87

100

-13.0

1.0%

1140

1.5%

Renault

41

7

485.7

0.5%

229

0.3%

Ford

Mondeo

87

227

-61.7

1.0%

615

0.8%

Porsche

33

21

57.1

0.4%

245

0.3%

Hyundai

i30

87

139

-37.4

1.0%

1202

1.6%

Volvo

32

21

52.4

0.4%

377

0.5%

Nissan

X-Trail

87

33

163.6

1.0%

1178

1.6%

Chery

27

104

-74.0

0.3%

274

0.4%

Kia

Cerato

72

43

67.4

0.8%

468

0.6%

Citroen

24

27

-11.1

0.3%

340

0.4%

Jeep

Grand Cherokee

71

64

10.9

0.8%

672

0.9%

Great Wall

23

24

-4.2

0.3%

158

0.2%

Ford

Fiesta

70

63

11.1

0.8%

814

1.1%

Alfa Romeo

17

19

-10.5

0.2%

218

0.3%

Hyundai

iMax

70

20

250.0

0.8%

247

0.3%

Chrysler

15

13

15.4

0.2%

76

0.1%

Ford

Territory

67

107

-37.4

0.8%

889

1.2%

Jaguar

10

11

-9.1

0.1%

110

0.1%

Ssangyong

Korando

65

75

-13.3

0.7%

547

0.7%

Maserati

8

0

0.0

0.1%

67

0.1%

Ford

Falcon

63

144

-56.3

0.7%

624

0.8%

Isuzu

4

2

100.0

0.0%

73

0.1%

Volkswagen

Polo

63

31

103.2

0.7%

561

0.7%

Mahindra

4

1

300.0

0.0%

47

0.1%

Kia

Sportage

61

89

-31.5

0.7%

778

1.0%

Ferrari

3

3

0.0

0.0%

12

0.0%

Dodge

Journey

58

39

48.7

0.7%

467

0.6%

Can-Am

2

5

-60.0

0.0%

48

0.1%

Ford

Ecosport

58

-

-

0.7%

275

0.4%

Mg

2

1

100.0

0.0%

44

0.1%

Holden

Barina Spark

57

45

26.7

0.6%

370

0.5%

Aston Martin

1

2

-50.0

0.0%

20

0.0%

Hyundai

i20

51

43

18.6

0.6%

622

0.8%

7

27

-74.1

0.1%

102

0.1%

Others

2347

2495

-5.9

26.3%

26,252

34.6%

8910

7962

11.9

100.0%

75,772

100.0%

Total

8910

7962

11.9

100.0%

75,772

100.0%

Others Total

From the rising sun to the long white cloud 28 | www.autofile.co.nz

The history of used car importing to New Zealand

new car sales

On target for record sales T

he registration of 12,023 new vehicles last month meant it was the strongest October since the industry started collecting records in 1975.

It brought the year-to-date total to 106,582 units with the previous best October coming in 1984 with 10,724 sales.

Distributors are closing in on 2013’s overall total of 113,297 sales and are on target to exceed highest annual sales of 123,247 set in 1984.

SUVs continued to make up the strongest segment with 26 per cent of all new vehicles sales in October. It was followed by small passenger cars at 23 per cent.

Passenger vehicle sales of 8,910 during October were up by 948 units on the same month of 2013, while 75,772 units have been registered in 2014 – 10.4 per cent more than this time last year.

Toyota remained the market leader on 2,395 units with last month’s results boosted by strong rental sales of 936 Corollas and 311 Yarises.

The Corolla topped last month’s cars chart on 1,257 units. It was followed by the Yaris with 438 sales.

Holden’s Commodore was next up with 294.

Myles Gazley, managing director of the Gazley Motor Group in Wellington, describes October as “a huge month”.

The business holds franchises for Volkswagen, Citroen, Renault, Nissan and MG, and has just secured Fiat, Chrysler, Alfa Romeo and Dodge.

“We have a great mixture of brands,” he says. “I think the car business is about product and we have good lines at the moment.

“It’s all about product and the right people. If you have those, then you are halfway there.

“Nissan has been going very well and so has Volkswagen, plus Renault

and Citroen had a good month.

“Nissan has been aggressive with its marketing. Its finance offer has meant a lot of used car buyers are going for new instead, and both Renault and Citroen are becoming more aggressive on price.”

Gazley says there was a bit of a drop in sales before the general election, “but the whole country was like that”.

He adds: “We have got some big Wellington-based fleet deals looming and people are spending money.”

Craig Baylis, dealership manager

Baylis told Autofile it’s always a battle to get people to go back to the manufacturer for servicing, but Peugeot is tackling that by now offering customers plans starting at $599 over three years.

He adds: “More people are now looking at European marques and part of that is due to the pricing.

“Because of the New Zealand dollar, you can now purchase European at the same price as a Japanese vehicle. Some models are even more competitive on price and European vehicles have held a premium in the past.”

New Passenger Registrations - 2012-2014 9500 9000 8500

2012 2013 2014

8000 7500 7000 6500 6000 5500 5000 Jan Feb Mar Apr May Jun

for Continental Cars Peugeot in Greenlane, Auckland, says inquiry has increased for Peugeot’s SUV range with the advantage of the 3008 being a small diesel.

“On the back of the 308 and the freshening of the 508, which is our mid-sized car, we are ready for a big push,” he says.

“The 208 has a younger and less conservative audience, and we will build on that with the 308.

“It has modern technology, such as touchscreens, and huge environmental advantages to appeal to people in their 30s.”

Jul Aug Sep

Oct Nov Dec

Baylis says when it comes to margins, trading is competitive among traditional car retailers.

“It’s expensive to have land in inner-city Auckland, there’s a lot of pressure on, it’s harder to attract people, you have to pay good money to keep people and landlords are only putting rents up, so it’s not for the weakhearted.”

He believes dealerships are finding it hard to attract new people into the industry.

“We are now training up people in-house who have never worked

in the motor industry before.

“Delivering people trained the way we want them is the only way to get well-trained staff because attracting them from other dealerships is hard work and expensive.

“When you have to train fresh staff, you have to hire on attitude. You can teach product knowledge, but you can’t teach people to be interested.

“I think there are a lot of people in electrical or furnishing retail doing the hours any way and they see the benefits of working in the motor vehicle industry.”

Mike Eastwood, dealer principal of Eastwood Motor Group in Masterton, reports trade as being “pretty good”.

“The market is quite buoyant locally as it is nationally. The three brands we have – Hyundai, Kia and Isuzu Utes – are very strong and we make up 22 per cent of the market in our region.

“Our point of difference is customers come in and enjoy the experience. We always have different functions, such as sailing on The Spirit of Adventure.

“We have done that four times now and 70 customers have already been on that trip with Hyundai sponsoring The Spirit of Adventure.

“Our sales manager, Gary Allen, is New Zealand’s top salesman and he represented Hyundai NZ in South Korea late last year in the first sales consultation competition.”

Eastwood adds “Hyundai’s flagship”, the Santa Fe, has been performing well, while the dealership has also been selling good numbers of i30s and iLoads.

“The Genesis has the highest safety rating of any vehicle, and the beauty of the range is that it’s affordable.”

Orders are now being received for this limited print run hardcover book – a fantastic gift or just to have in the office or showroom Priced at $59.50 including post and packaging Visit www.autofile.co.nz/book and fill in the order form now, email brian@autofile.co.nz or phone 021 455 775 www.autofile.co.nz | 29

new commercial sales

Sales steam ahead of last year L

ast month saw 3,113 new commercial vehicles registered, which was up by 379 units – or 13.9 per cent – compared to October 2013.

Year-to-date sales now come in at 5,286, or 20.7 per cent ahead of the same time last year.

Stephen Salkeld, sales manager of Bay Ford in Hastings, expects the commercial market to grow on the cusp of some local developments looming.

“Without a doubt, the trades come and go,” he says. “You have a run of it throughout the year.

“You can sell two or three vans one month, and the next month you will see nobody. There’s no pattern to it.”

Kevin Small, of TRC Toyota in Feilding, says: “Pockets of stock are harder to get at the right

price points, and commercial vehicles and medium-sized vehicles are a bit limited at the moment.”

On the reduced Fonterra payout, he feels this will have a small effect because most farmers have their budgets set.

“Dairy isn’t a huge sector for

Toyota Ford Holden Isuzu Nissan Mitsubishi Volkswagen Mazda Fiat Mitsubishi Fuso Ssangyong Mercedes-Benz Foton Hino Hyundai Great Wall Ldv Ud Trucks Scania Volvo Others Total

purchasing because you don’t get the high and lows.

“The building industry here is not strong, but it’s not in decline, and all of the tradies have plenty of work.”

Henry Belt, of Whangarei’s IC Motor Group, says new commercial vehicles now account for about 45 per cent of the region’s market.

“The Navara has sold well for us after we struggled to get supply to match demand,” he says.

“In the main, if you do the job well and get the chance to secure stock, buyers will wait.”

Ford’s Ranger retained top spot as the monthly top-selling ute in October with 627 sales.

Year to date, it’s ahead of Toyota’s Hilux by 283 units.

New Commercial Sales - 2012-2014

4250 4000 3750 3500 3250 3000 2750 2500 2250 2000 1750 1500 1250 1000

2012 2013 2014

Jan Feb Mar Apr May Jun

New Commercial Sales by Make - October 2014 Make

Feilding because we are more sheep and beef,” explains Small.

“We have been a bit up and down over the past two or three years, but if they have another good year next year, it will have flow-on effects for our industry.

“Trades do play a small part.

They are more consistent in their

Jul Aug Sep

Oct Nov Dec

New Commercial Sales by Model - October 2014

Oct '14

Oct '13

+/- %

Oct '14 Mkt Share

2014 Full Year

2014 Mkt share

707 691 252 168 142 131 123 104 81 77 75 70 59 55 52 47 35 28 27 27 162 3113

601 542 256 139 177 154 159 80 33 63 36 59 19 59 75 82 22 19 15 19 125 2734

17.6 27.5 -1.6 20.9 -19.8 -14.9 -22.6 30.0 145.5 22.2 108.3 18.6 210.5 -6.8 -30.7 -42.7 59.1 47.4 80.0 42.1 29.6 13.9

22.7% 22.2% 8.1% 5.4% 4.6% 4.2% 4.0% 3.3% 2.6% 2.5% 2.4% 2.2% 1.9% 1.8% 1.7% 1.5% 1.1% 0.9% 0.9% 0.9% 5.2% 100.0%

7147 5691 2643 1829 2112 1975 1134 1272 325 581 746 570 381 620 652 687 345 212 176 234 1474 30,806

23.2% 18.5% 8.6% 5.9% 6.9% 6.4% 3.7% 4.1% 1.1% 1.9% 2.4% 1.9% 1.2% 2.0% 2.1% 2.2% 1.1% 0.7% 0.6% 0.8% 4.8% 100.0%

Make

Model

Ford Toyota Holden Toyota Nissan Isuzu Mazda Mitsubishi Fiat Ssangyong Ford Volkswagen Mercedes-Benz Foton Hyundai Ldv Great Wall Isuzu Volkswagen Mitsubishi Fuso Others Total

Ranger Hilux Colorado Hiace Navara D-Max Bt-50 Triton Ducato Actyon Sport Transit Amarok Sprinter Tunland iload V80 V240 N Series Caddy Fighter

Oct '14

Oct '13

+/- %

Oct '14 Mkt Share

2014 Full Year

2014 Mkt share

627 514 235 175 142 110 104 103 79 75 62 57 56 51 51 35 33 33 30 29 512 3113

478 396 233 186 177 75 80 103 32 36 58 63 45 19 70 22 65 27 6 18 545 2734

31.2 29.8 0.9 -5.9 -19.8 46.7 30.0 0.0 146.9 108.3 6.9 -9.5 24.4 168.4 -27.1 59.1 -49.2 22.2 400.0 61.1 -6.1 13.9

20.1% 16.5% 7.5% 5.6% 4.6% 3.5% 3.3% 3.3% 2.5% 2.4% 2.0% 1.8% 1.8% 1.6% 1.6% 1.1% 1.1% 1.1% 1.0% 0.9% 16.4% 100.0%

5072 4780 2428 2169 2112 1062 1271 1334 297 746 575 670 439 335 636 345 527 329 149 209 5321 30,806

16.5% 15.5% 7.9% 7.0% 6.9% 3.4% 4.1% 4.3% 1.0% 2.4% 1.9% 2.2% 1.4% 1.1% 2.1% 1.1% 1.7% 1.1% 0.5% 0.7% 17.3% 100.0%

FRANCHISE DEALERS

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30 | www.autofile.co.nz

used commercial sales

Used ute and van sales up A

n 11.6 per cent increase in the registration of used commercial vehicles was recorded last month compared to October 2013 – 701 against 628.

Toyota topped the ladders for marques and models with 342 overall sales and 244 Hiaces being registered.

These figures represented rises of 14.4 and 14.6 respectively compared to October last year.

Nissan took out both second places.

Ryan Durry, of Quay Cars in Nelson, says his business has been selling quite a few used commercial vehicles.

“They have mainly been fourwheel-drive utes and generally they have sold within seven days,” he told Autofile.

“I’m lucky if I get trade-ins. I tend to get vehicles from franchise

dealers because they don’t want to retail them and they have usually done too many kilometres.

“We also import a couple of Hiaces from Japan, but we are competing with dealers in Auckland.

“It’s not hard for someone to now buy from Auckland without anyone seeing it and prices have to

Used Commercial Sales - 2012-2014

850 800 750 700 650 600 550 500 450 400 350 300 250 200

2012 2013 2014

Jan Feb Mar Apr May Jun

Used Commercial Sales by Make - October 2014 Make

Toyota Nissan Mazda Ford Mitsubishi Isuzu Hino Chevrolet Holden Fiat Mercedes-Benz Gmc Dodge Mitsubishi Fuso Renault Suzuki Volkswagen Daihatsu Iveco Volvo Others Total

be in line with what’s on Trade Me.” “Used commercials have been hard to source and sell,” says Ian Baard, of John Andrew Mazda.

“I guess that’s because new vehicles aren’t overly expensive and people can afford to buy them.

“For example, there was a $3,000 price difference between a one-

Jul Aug Sep

Oct Nov Dec

year-old used vehicle and the new model. Price points are so close.”

Baard describes the city’s market as “a lot more competitive, regardless of new or used”.

He says: “Everyone’s trying to make a living selling vehicles. New car manufacturers and their prices are so competitive, and that’s affecting the used market.

“The reality is every dealership is different and we encourage our existing customers to stay ahead of the game.”

Stephen Salkeld, of Bay Ford in Hastings, says: “With so many Ranger sales lately, I’m absolutely choc-a-block with used commercials so I haven’t had to go looking.

“This has mostly been ute tradeins on utes. We don’t often get too many cars traded.”

Used Commercial Sales by Model - October 2014

Oct '14

Oct '13

+/- %

Oct '14 Mkt Share

2014 Full Year

2014 Mkt share

342 136 42 32 30 23 20 15 11 9 6 4 3 3 3 3 3 2 2 2 10 701

299 136 30 24 13 40 15 12 2 10 1 4 6 1 3 5 3 0 0 3 21 628

14.4 0.0 40.0 33.3 130.8 -42.5 33.3 25.0 450.0 -10.0 500.0 0.0 -50.0 200.0 0.0 -40.0 0.0 200.0 200.0 -33.3 -52.4 11.6

48.8% 19.4% 6.0% 4.6% 4.3% 3.3% 2.9% 2.1% 1.6% 1.3% 0.9% 0.6% 0.4% 0.4% 0.4% 0.4% 0.4% 0.3% 0.3% 0.3% 1.4% 100.0%

3213 1335 326 259 209 323 135 150 99 56 43 31 36 14 17 29 37 6 11 18 156 6503

49.4% 20.5% 5.0% 4.0% 3.2% 5.0% 2.1% 2.3% 1.5% 0.9% 0.7% 0.5% 0.6% 0.2% 0.3% 0.4% 0.6% 0.1% 0.2% 0.3% 2.4% 100.0%

Make

Model

Toyota Nissan Toyota Mazda Nissan Toyota Nissan Isuzu Mitsubishi Nissan Toyota Nissan Toyota Fiat Ford Hino Mitsubishi Chevrolet Ford Hino Others Total

Hiace Caravan Regius Bongo Vanette Dyna Navara Elf Canter Nv200 Toyoace Atlas Hilux Ducato Ranger Dutro Delica Silverado Transit Ranger

Oct '14

244 54 43 37 30 16 15 14 13 13 13 10 10 9 9 9 9 8 8 8 129 701

+/- %

Oct '14 Mkt Share

2014 Full Year

2014 Mkt share

213 14.6 71 -23.9 31 38.7 25 48.0 43 -30.2 24 -33.3 8 87.5 22 -36.4 10 30.0 0 1300.0 4 225.0 10 0.0 7 42.9 9 0.0 4 125.0 7 28.6 1 800.0 7 14.3 13 -38.5 5 60.0 114 13.2 628 11.6

34.8% 7.7% 6.1% 5.3% 4.3% 2.3% 2.1% 2.0% 1.9% 1.9% 1.9% 1.4% 1.4% 1.3% 1.3% 1.3% 1.3% 1.1% 1.1% 1.1% 18.4% 100.0%

2388 625 305 262 376 200 91 174 78 41 127 118 97 52 72 61 54 60 70 42 1210 6503

36.7% 9.6% 4.7% 4.0% 5.8% 3.1% 1.4% 2.7% 1.2% 0.6% 2.0% 1.8% 1.5% 0.8% 1.1% 0.9% 0.8% 0.9% 1.1% 0.6% 18.6% 100.0%

Oct '13

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