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November 2016

ITS frequency problem focus of joint delegation A potential problem for New Zealand in the evolving ITS landscape is being tackled head-on in Japan

A

joint delegation, representing the Imported Motor Vehicle Industry (IMVIA) and the Ministry of Transport (MoT), is currently in Japan. The group is looking for a solution to the problems relating to the radio frequency that Japan plans to base its Intelligent Transport Systems (ITS) An ITS speed sensor, video camera and transmitter infrastructure on.

IMVIA policy advisor anyone else to operate on it.

Kit Wilkerson and MoT principle However, due to the number advisor Iain McGlinchy are meeting of cars imported into New with Japanese Government officials, Zealand from Japan there is the motor vehicle manufacturers and real potential for cars to arrive on industry representatives to research these shores with the 760MHz current and future situations centred technology embedded, making around Japan’s plan to use the 760 those vehicles illegal to sell and megahertz (MHz) frequency for its operate in this country.

ITS technology.

Wilkerson said the focus of the trip That frequency is unavailable was to find out more about Japanese for use in New Zealand as it plans for the 760MHz frequency and is already being used by the to educate Government and motor telecommunications industry and industry people in Japan about the it is against New Zealand law for problem that could cause in New

Zealand - and potentially other overseas markets - for Japanese car exports.

The delegation’s first goal was to work out a way to easily identify vehicles that have the technology to read and transmit over that frequency and how to get that information back to New Zealand importers before they were loaded on a ship, as once they were here the problem would rest with the companies who imported them.

The ideal approach would be to get that information from the vehicles’ manufacturers but Wilkerson admitted that scenario was probably unlikely at this stage.

He said he was taking a couple of mock-up devices, one relatively cheap to produce and the other more expensive, with him that should be able to detect the 760MHz frequency in vehicles. The idea was that not only would they be able to detect the frequency but

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guest editorial

A small and generous world David Vinsen recently enjoyed an unexpected adventure whilst on a motorcycle trip

I

don’t know whether it was a Tongariro National Park, almost dose of serendipity or kismet, immediately after being dropped but I had to thank my lucky off I was back in another car, this stars last week, on my annual time on my way to Taumaranui. motorcycling adventure with my My new driver was a very friendly three brothers and five of our guy who worked for KiwiRail and friends. he passionately chatted about For this year's journey, we the company's positive culture decided to take a few day and their focus on safety. trips around My next stop Ohakune, on a was Taumaranui, mix of gravel where I waited for and sealed 20 minutes before roads. We try being picked up to organise our by two brothers trip to coincide in a late model with a Grand Toyota SUV. Prix happening David Vinsen with his BMW motorcycle As fate somewhere and would have it, spend one evening enjoying it on the brothers were on their way to the big screen, this year it was to Auckland and it wasn’t long before be the Malaysian Grand Prix. we realised that we knew a number The first two days, on my BMW of people in common. One of the R1200GS Adventure bike couldn’t brothers was a lawyer in Panmure have gone better, however on the and the other, Warren, was an third day the clutch broke and engineer. I was completely blown I had to push the bike back to away by just how small the degree where we were staying. of separation was in our country, I needed to get my bike back and the amazing generosity of to Auckland, so I walked down to some that live here. This was further the local information centre to reinforced by Warren offering me find out whether there were any his ute to return to Ohakune to pick rental vehicles, or how I could get up my bike. Coincidentally, Warren’s to Auckland in time to get back work is across the road from the with a ute or trailer to pick up my IMVIA office! I drove his ute back to bike. There was nothing available Ohakune, where I arrived in time to and the only other option was a watch the Malaysian Grand Prix with long and arduous bus trip which the others. wouldn’t get into Auckland until As I relaxed, with a beer in my late at night. hand, I was reminded of a book I decided to relive my younger called The hundred-year-old man days and hitch-hike. I stood who climbed out the window and on the side of the road with a disappeared. If I was to write a bag hanging over my back and book about this trip, I would call less than five minutes later, I it “The 68-year-old who got stuck was picked up. The first driver on the side of the road and had a was a contractor on his way to great adventure”.

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also see what it looked like on the devices when they registered that information.

The next step would be to work out at what stage in the Japanese inspection process it would be best to try and use the devices, and the most ideal one seemed to be before they went to auction.

With that in mind the delegation is meeting with auction house representatives so it can be walked through the pre-auction process to see where that testing would best fit in. The problem from the New Zealand point of view was it would not be possible to force auction houses to incorporate that type of test in their inspections, as they would have to be convinced it would be worthwhile, which was where another goal of the trip came in.

Wilkerson said the idea was to educate stakeholders in Japan that the frequency problem existed, as many involved in the industry in Japan were probably not aware of it, or its potential scale.

There were around one million

used vehicles leaving Wilkerson is also Japan annually and meeting with IMVIA if those vehicles members there to couldn’t be used in answer any questions the countries that they might have were importing them and to familiarise the problem would himself with who they come back to haunt were and how they the Japanese used car operated.

Kit Wilkerson says the idea of export industry, he said. the delegation was to educate IMVIA chief stakeholders in Japan that the executive David Vinsen “So we need to ITS frequency problem existed inform stakeholders said the trip to Japan there that this problem exists and was important for the New Zealand what the possible repercussions are imported used car industry, not just for them.” because of the information it would Wilkerson said the Japanese car gather. industry also had access to the 5.8 He said the contacts that to 5.9 gigahertz frequency, which Wilkerson had already made in was the same area of the spectrum the ITS world had garnered him an that the United States and Europe invitation to a technical conference had set aside for ITS technology, in Japan on setting standards that and one that New Zealand could would govern ITS internationally. also work within.

“So Kit will be sitting at the table However, unfortunately the when they develop these standards Japanese argument was that on radio frequency. It’s great for us 760MHz performed better in the and a bit of a coup that he has been urban environment. invited and will be able to report There are also other facets to the back to us on what’s being said. delegation’s Japan trip.

“From the work he’s already done

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in the area he’s been recognised as an expert and he’s been invited to attend a variety of working groups and workshops. It’s invitation-only so it is real recognition.

“It’s significant for the used vehicle industry and for New Zealand as a whole and an achievement for the association and for the country for Kit to be appreciated.

“As standards are developed we can have an input, not just as standards takers but as standards makers in the international trade of used vehicles.”

The MoT’s McGlinchy also believed the trip held real value, both for the car industry and New Zealand transport regulators.

He said the joint delegation made sense as both organisations stood to benefit from solving the potential frequency problem before it became a major issue here.

“We’re both very interested in the same issue of radio frequency and like any of these things there’s a whole lot of potential technological issues to be explored.”

news

Who’s data mining your vehicle?

I

magine having your vehicle tracked from the time you leave the house to your arrival point. The manufacturer has access to the exact route you take, whether you go over the speed limit, how you navigate bends and how many times you stop to charge your car.

Autonomous vehicle and intelligent transport technology is already taking off in the United States, where there is a lot of conversation going on regarding data and how it can be safely allocated.

Most notably, the office of Senator Edward Markey, an American politician and member of the Democratic Party, has produced a report which explains how much data is allocated by car manufacturers.

According to the report, most manufacturers have “navigation, telematics, infotainment, emergency assist, stolen-vehicle recovery and event-data recording systems that have the ability to record driving history information”.

During the planning stages of the report, manufacturers were given the opportunity to comment on the data they collected from their customers. Although Honda, Porsche and Mercedes-Benz refused to provide information and Tesla, Aston Martin and Lamborghini didn’t respond at all, at least seven of the remaining manufacturers that replied, admitted to collecting information on drivers’ geographic locations.

The report states that nearly 100 per cent of cars on the market include wireless technologies that could pose vulnerabilities to hacking or privacy intrusions.

The majority of the companies who responded (nine out of 11), claimed that they even contracted with third-party companies to provide the data-collecting features that they offer. “In fact, three manufacturers specifically stated they license third-party companies to transmit and store data associated with the features”, the report states.

In the near future multitudes of companies could access your personal information and travel details via your vehicle

Eight manufacturers admitted to collecting information about driver’s habits and stated that the reason for this was due to maintaining services, diagnosing technical issues, providing feature functionality and, possibly most alarmingly, for research and marketing purposes.

Five of the eight manufacturers claimed that they shared this information with third parties to provide subscriber services, although they said that they didn’t sell the information and none of it was ‘personally identifiable information’.

Most importantly, it was found that customers were not often made aware of the data collection and, when they were, they were not able to opt out, without disabling important features such as navigation. But is that data being used just for vehicle improvement, or could it be used against us in the future?

Communications Advisor for the Office of the Privacy Commissioner, Sam Grover says that the Privacy Act in New Zealand requires agencies, such as auto manufacturers, to be clear and open about what information they are collecting and what they will do with it. “This purpose needs to be lawful, and they can only collect as much information as they need to fulfil that purpose”.

Grover explains that they

can then be found in breach of the Privacy Act if they use the information they collect for a purpose other than the purpose they originally gave.

“For example, if an auto company told customers that it would only

collect information for internal statistical purposes, but then sold this information to marketing firms, they would likely be breaching the Privacy Act.” According to Tesla's terms and conditions, the company admits to accessing customers information.

“We may collect such information either in person (e.g., during a service appointment) or via remote access. This process may result in access to personal settings in the vehicle (such as contacts, browsing history, navigation history and radio listening history).

To avoid being tracked, the owner of a Tesla vehicle has the option to automatically decline ‘cookies’ from their browser, however “if you do not accept these cookies, you may experience some inconvenience in your use of the services. For example, we may not be able to recognise your [continued on page 6]

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5

news [continued from page 5]

computer and you may need to log in every time you visit the applicable services.”

Already the owner of a huge amount of data, thanks to apps such as Google Earth, Street View, Play and Gmail, the multi-billion dollar datasharing and technology company, Google already has a self-driving vehicle that generates nearly one gigabyte of data every second.

Jaguar Land Rover’s selflearning car includes software which can combine the time of day, traffic conditions and the weather in order to predict the driver’s behaviour on the road. The vehicle can review your schedule for the day (via your Smartphone) and preset the navigation system to keep up with your plans for the day and if you are late for an appointment, the software can even email or call ahead for you.

With this kind of information, car manufacturers are increasingly accessing not only how the vehicle moves through traffic, but some very personal details

about the driver as well. This is the holy-grail of big data, with many manufacturers finding ways to access information about their customers, which they can utilise for a variety of reasons.

Another business which has ties to autonomous vehicle technology, Samsung SDS, the IT service affiliate of Samsung Electronics, is working with business analytics vendor, SAS to develop a big data analytics solution.

IBM is also heavily involved in mining EV data, in order to ensure that charging stations are available at the right places. “Big data is going to be a big issue for electric cars,” says IBM’s global distributed energy resource leader Clay Luthy told Forbes. “One of the keys to electric vehicle success is ensuring the grid can support them, especially as vehicle counts grow, and that adopters have absolutely seamless user experience.”

In order to collect data from its customers, the manufacturer

needs to communicate via a radio frequency. According to the Safer Journeys Vehicle Standards Map, there is currently no global consensus on which part of the radio spectrum should be used. The United States and The European Union propose frequencies in the 5.9GHz range, while Japan proposes using the 5.8GHZ and 700MHz bands.

Grover says that the best way to avoid having your data sold to third parties is to vote with your feet. “If you’re not happy with the amount of information a car company collects about you as a driver, it is your right as a consumer to buy your car from a different company.

Privacy is increasingly becoming a competitive advantage for companies, so they have a commercial incentive to respect your privacy.”

Chief executive of the Motor Industry Association (MIA), David Crawford, says that in the future, rules around data collection and

its use will be very important as third parties such as insurance companies, will want to access it in order to “show cause and effect and work out who is to blame during an accident.”

This is already taking effect overseas with insurance companies utilising telematics data to help drivers save money.

US finance company, State Farm has partnered up with Ford to deliver the Drive Safe and Save programme, which gathers odometer readings through OnStar and Ford Sync subscriptions. In exchange, a discount is applied to those who travel less.

Crawford believes the allocation of big data could become an issue in NZ if regulations are not made for manufacturers and third parties to follow.

Although he states that we are driving on public roads and need to be lawful while doing so, he admits that it is not clear, at

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news

Automobile data - sources, collection and goals t the moment, about what will be allowed in NZ, once autonomous vehicles are more prevalent.

“There are probably more questions than answers at the moment. Decisions about big data are not going to happen overnight, there will be a progression.”

He says this would be something that the government will need to discuss alongside industry leaders such as the Ministry of Transport (MoT)and

NZTA. “There would need to be a lot of discussion in consultation with stake-holders such as manufacturers.”

According to a spokesperson from the MoT, the question of what data car manufacturers are gathering about vehicles and the behaviour of drivers, is a matter of worldwide interest and key legislations have already been outlined in the Privacy Act. The government’s ITS

Technology Action Plan - 2014 - 2018 considered the question of data security and privacy and concluded that “the legal principles governing the collection and use of personal information are part of the Privacy Act 1993, rather than being covered in transport legislation. It concluded that provided these practices were followed, our existing legislation is appropriate.”

A recent study, called the C-ITS platform, in Europe recently looked at data collection related to connected vehicles and recommended that an opt-out possibility should be offered, where the driver can shut down the broadcast, while being fully informed about possible adverse consequences. According to the spokesperson, New Zealand is likely to be guided by these types of reports once we begin to deploy connected-vehicle technology.

The spokesperson says that the MoT is also monitoring international discussions and is part of the Australian Connected and Automated Vehicles Programme run

by Austroads.

At present, “connected vehicles (which will use the 5.9GHz frequency to transmit data between vehicles and to roadside infrastructure) are not yet available in this country and so the technology poses no immediate concerns for privacy here”.

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7

news

Auckland port’s vehicle trade in jeopardy P

lans to remove vehicles from the Ports of Auckland wharves could be underway now that Phil Goff has taken over as mayor of the city.

While Auckland Council's Port Future Study Group favours shifting the Auckland Harbour port to Manukau Harbour, Goff has already discussed ridding vehicles from Auckland's port, instead preferring to see them head north to Whangarei's Northport, his plan is to start with used cars.

During a discussion on The Nation programme, in June, Goff stated that valuable land in the CBD was being wasted on used cars and containers coming into the country. He said that by the time the Ports of Auckland reach capacity, it will be too late to make the change. "What you can do as an interim is that you can move the used cars off the wharves in Auckland and you could put them in Northport."

Northport is 50 percent

shareholder of Marsden Maritime Holdings who in turn owns 65 hectares of land at Marsden Point, which abuts directly onto Northport’s boundary. These land holdings are available for lease to companies wishing to make use of the Northport facility. It also owns more than 115 hectares behind this area, zoned as Business 2 and 4. This is available for long-term lease to companies wanting to make use of the port. Off-highway access to Northport is available from this area, meaning that normally overweight loads can be transported directly from a site to a ship’s side.

"That’s a combined potential non-port area of 180ha, more than twice the area of the 77ha available at Ports of Auckland," says CEO of Northport, Jon Moore.

In response to a survey by MYOB, showing 54 per cent of small and medium businesses want the port to move to another location, Goff told the Herald, in

Used cars being off loaded from a RORO ship onto Auckland's port

early October, that any attempts to expand further into the Waitemata Harbour could lead to heads rolling at board level, as according to the survey of 326 businesses, only 13 per cent of the business owners wanted the port to stay in its downtown location.

IMVIA chief executive, David Vinsen says there is currently a study taking place, within the industry, which will investigate the feasibility of moving vehicles to another port.

Vinsen visited Northport in early November to discuss a "plan B", in the event that a move did take place, however he says that "at present, we are just waiting to see what the outcome and recommendations are relating to the final political decision."

Vinsen says there are a lot of logistical issues that would need to be ironed out before vehicles could be sent to Northport. "It will cost a lot to send vehicles back and forth to Northport and we would need to work on that first."

The head of vehicle logistics provider Autohub, John Davies, believes the plans are a knee-jerk reaction by those who have not looked at the situation in depth.

"Northport is an idea lacking in thought and consultation.”

He doesn't believe there is anything wrong with the status quo and that vehicles are one of the fastest turnover cargo on the ports today. “Currently we have the most efficient vehicle handling port in the country, where council income from vehicle movements alone contribute about one hundred and twenty dollars per household to their rates, so, every ratepayer may face extra costs if cars are removed.

In addition to that there are no alternative options that don’t add significant cost to the process.

Currently a transporter can make about five trips a day in Auckland, compared to one or two from Northport, the increase in vehicle movements on the state highway 

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news t would be massive, and with these increases come public road risk of accidents, delays, extra charges, and damage. All of this is a large cost added to what is now an efficient and effective solution.�

Davies suspects the vehicle industry has not been considered at all "I think the problem is more to do with the idea of a port sitting on prime real estate that developers and politicians set their sights on, rather than the actual cargo. Are the public prepared to pay so much extra for future vehicle purchase, seemingly to satisfy the greed and desires of developers."

Goff told news website, Stuff.co.nz, back in July that he would like to see the waterfront transformed into a great public space area, great residential housing and high value-added commercial activities.

Marsden Point has a lot to offer these businesses, including good transport links, abundant and relatively inexpensive space, no congestion and enviable lifestyle options for employees."

"We could comfortably accommodate any car carrier in the world today and store about 1,000 cars on paved-storage areas within the port as an interim arrangement."

In the long term, the cars would not be stored within the port, but discharged from the vessel directly to purpose-built storage facilities immediately outside of the port in a single movement. Moore states that this would be different to the inefficient multiple movements in Auckland - "off ship to wharf, transport to storage, transport to any repair/cleaning facilities, transport to dealer" and states that these storage facilities would give

Phill Goff suggests that Northpoint, adjacent to Marsden Point, could serve as an interim wharf for used cars imported into the country

He also recently spoke to the Herald and said that if the port was to be sold, the land should be owned permanently by the people of Auckland and the business should stay in council ownership until its long-term future is decided.

On top of the logistical issues, Davies is concerned about the current employees and says that the plans will not work "unless you are prepared to ruin a great deal of industry and business in the process."

Moore says the Northlandbased port was built specifically as a multi-purpose facility. "It is well placed to handle whatever traffic comes its way. This includes extra cargo that Auckland may not be able to handle in the future, as well as the import and export requirements of any businesses wanting to relocate to Marsden Point from places like South Auckland.

everyone involved full access, at any time, to any vehicle.

"With some sound supplychain logistic planning, there are numerous other options for dealers to reduce their overheads by reducing costly city dealership footprints – of course this is not something that would happen overnight but with the projected Auckland growth land will become more and more expensive, business will need to explore all options."

Goff told the Northern Advocate, on October 19th, that Northport would seem ideal to take Auckland's imported car loads, but the rail line to Auckland would need upgrading and a rail link to the port would need to be built.

He said a good business case study would need to be done before any government would commit the hundreds of millions needed for both lines. www.autofile.co.nz

9

news

Dealer wins trade plate case A

n Auckland dealer has won a court case, against the police, relating to trade plates, setting a precedent for future disputes.

Dealer manager for Hatchback Autos, Arthur Murray was driving one of his stock vehicles home from work, in May last year, when he was stopped by a senior police officer.

As he is employed from 6am until 7pm at night, Murray doesn’t have the time to test-drive the new vehicles during working hours. “I generally always take a different car home so I can learn how things work.”

Although the car had an upto-date WOF attached, the officer removed the plates from the vehicle, even though Murray explained that most of the company stock was unregistered and trade plates are legally transferrable registration.

The police officer stated the trade plate could only be used by a dealer for obtaining compliance and testing during business hours. “His apparent view was that going home was entirely private use and therefore a breach of the rules and issued an infringement notice,” says Murray.

The officer stated that he was acting on instructions received in a letter from the New Zealand Transport Agency (NZTA). He explained the letter required that he ask where trade plate users were travelling to. If this was home, an infringement was to be issued and the plate was to be confiscated.

According to a spokesperson for the NZTA, they have not instructed NZ Police to stop people using trade plates. "When

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requested, the Transport Agency does provide advice to police about the law regarding the use of trade plates".

Either way, Murray claims that the officer removed the plate and threatened him with arrest for obstruction when he took a picture of it. The next day, the officer returned the trade plate, after taking the time to check the law.

However he refused to cancel the infringement notice.

According to chief executive of the Imported Motor Vehicle Industry Association (IMVIA), David Vinsen, this is an ongoing issue that occurs from time to time. “Sometimes a new policeman who has been promoted can get over zealous.”

Vinsen says that there has been occasions where new policemen start handing out tickets to local dealers because “they have nothing better to do and have a bee in their bonnets”.

Murray decided to challenge the fine, however the two Justices of the Peace in the case, found him guilty. “One JP stopped my presentation of evidence early in the proceedings and stated they (the JP’s) intended to rule against me and I could appeal.”

The police strongly opposed the appeal application, instructing a central city law firm to argue against the appeal application.

The closing comment in the law firm’s document was “there are too many vehicles with trade plates being driven on the road and it had to stop”. The case was heard in three sessions and Murray’s appeal was successful.

“The judge accepted our view.

The infringement was cancelled. The judge ordered the fine be refunded and the Police are to pay court costs.

I have yet to see any refund.”

Vinsen is pleased with the

result as he says it provides a precedent for future cases.

According to the trade plate notice 2011, vehicle traders can use a trade plate for demonstration, delivery, repair, modification, evaluation, maintenance and testing at any time and to any location.

“Vehicles are usually purchased overseas and there was zero opportunity to drive or personally appraise vehicle conditions prior to purchase. Evaluation after compliance in the case of an import is an intended trade plate use,” says Murray, who has a good understanding of the rules thanks to a letter he wrote to the police back in 1995.

The letter asked for legal information relating to trade plates. “I got a reply from the predecessor to the chap who took my plates and he stated that there was no restriction on trade plates from 2011.”

Vinsen says that membership and technical services manager Malcolm Yorsten from the IMVIA has been involved in a number of working parties wording the legislation. “Often the police think that the dealer plate should only be used in an inspection.

However, the reason behind trade plates is to identify the vehicle and trace it back to the dealer.

We want dealers to be able to drive new cars up and down the country. They can’t do that without a trade plate.”

The NZTA is currently reviewing the judgement in this case and, along with the Ministry of Transport, will review it and consider whether any changes to the rules governing the use of trade plates are required, the NZTA spokesperson says.

In the meantime, Vinsen says that dealers who find themselves in a similar position should stick to their ground and argue their point.

“As long as the vehicle is warranted and safety tested, you should legally be allowed to drive it. The only thing the trade plate does is let authorities know who’s responsible for that particular vehicle”.

news

Industry to collaborate on airbag recall T

he bodies that represent the interests of distributors of new motor vehicles and those who import them as used, are putting their heads together to try and come up with solutions to problems the Takata airbag recall has created in this country.

The Motor Industry Association (MIA) and the Imported Motor Vehicle Industry Association (IMVIA) have agreed on the need for both groups to collaborate closely on the issue for the good of their respective members and the motoring public, but the finer points are yet to be settled upon.

IMVIA chief executive David Vinsen said preliminary brief discussions had been held between the two organisations over the need to establish a code of practice over how to deal with used cars imported into New Zealand that are subject to a safety recall.

He said while discussions were in the early stages and there were good intentions on both sides, “the devil will be in the detail”.

“There will be a good level of mature collaboration wherever possible, while still looking after members’ best interests.”

The two groups had worked together on a range of issues in the past, Vinsen said, including sitting on the same committees and making joint submissions to government, but in this case the interests of their members were not always aligned, so both associations would tread carefully.

The New Zealand Transport Agency’s initial response to the problem has been to change the Vehicle Inspection Requirements Manual inspection procedures, firstly to deal with vehicles entering the fleet at entry

certification, and secondly to deal with vehicles already in service at Warrant of Fitness.

As an immediate measure the IMVIA has recommended that its members ask their agents to check vehicles against outstanding recall lists before the vehicle is shipped from Japan.

MIA chief executive David Crawford said it made sense for both groups to work together to look at how to manage the issue of imported used vehicles subject to safety recalls.

Crawford says he hopes the associations will get together sooner rather than later to discuss what industry expectations are for recalls of both new and used vehicles and to establish a code of practice for importers of used vehicles that are subject to an open recall, one that can work in conjunction with the code of

practice distributors have for used vehicles already imported into New Zealand.

“The first step is for the new and used sectors to agree on the scale of the problem. We need to get some clarity on that first before we can do anything else.”

He said the MIA and the IMVIA had worked together before, however in this situation there were some fundamental differences in their members’ interests.

That was particularly the case on compliance requirements for vehicles imported as used that were the subject of safety recalls and who should pick up the tab for work needed on those vehicles, Crawford said.

He said the airbag recall showed there were cracks in the enforcement of compliance conditions, and that also needed to be looked at.

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11

news

Meeting strengthens industry ties T

he recent Imported Motor Vehicle Industry Association (IMVIA) board meeting in Wellington, where national executive members met with a range of stakeholders from relevant government agencies and industry bodies, has been hailed as a great success.

IMVIA chief executive David Vinsen said he was “absolutely rapt’’ with the two-day meeting held in mid-October. It was just the second time a board meeting had been held in Wellington with stakeholders invited.

“The level of engagement between guests and the board was great,” Vinsen said. “It was open and direct, with good levels of consultation. It worked out really well.”

Vinsen said it was important for the stakeholders who attended the meeting, who he dealt with on a regular basis, to see he reported

12 www.autofile.co.nz

(l-r) Alistair Sheard (IMVIA board secretary), Alastair Scott, (MP for Wairarapa), Mike Noon (Automobile Association)

to a board that followed proper governance procedures. It was also a great opportunity for the IMVIA to both build and strengthen relationships that would be beneficial to the association in the future.

One of those who addressed the meeting was Iain McGlinchy, principal adviser at the Ministry of Transport (MoT), who had just returned from the 2016 Intelligent Transport Systems (ITS) World Congress in Melbourne.

McGlinchy told the meeting that

IMVIA joint chairman, Graeme Macdonald, addresses the meeting

most vehicle manufacturers and several IT firms have announced plans to introduce some form of autonomous vehicle by 2020. New Zealand was well-placed to test those vehicles, McGlinchy said, because our legislation does not explicitly require a driver to be present for a vehicle to be used on the road. That means as long as testing is carried out safely, a truly driverless vehicle may be tested on New Zealand public roads today.

While there is still some debate in the ITS community about the pace of change in intelligent transport technology, McGlinchy said most people at the ITS congress agreed that the future transport system will be connected, automated and shared.

McGlinchy also touched on Mobility as a Service (MaaS), a fairly new idea about reducing congestion by using ITS technology to enable people to share vehicles and to make using public transport simpler and faster. He said some people think that within five years, owning a car in many cities will be a rare and unnecessary thing.

The MoT was currently focussing on five key areas in relation to ITS, McGlinchy said: promoting New Zealand as a test-bed for ITS technologies; ongoing international and domestic engagement on ITS; completing a scan of New Zealand legislation to ensure that there are no unnecessary regulatory barriers to the uptake of beneficial transport technologies; research into data needs for intelligent mobility; and reviewing the Government’s ITS action plan.

He said the ministry will also continue to collaborate with Australia on two other key actions:

radio spectrum standards for connected vehicle technologies, and positioning systems needed for the deployment of ITS technologies - in particular, satellite-based augmentation systems.

Another subject that featured strongly at the meeting was the Takata airbag recall. Brian Sara and Mark Rounthwaite, from the NZ Transport Agency (NZTA), ran board members through some approaches that could be adopted at both entry certification and in-service levels, while Motor Industry Association (MIA) chief executive David Crawford expressed his willingness to collaborate on several issues facing both the IMVIA and the MIA, one of which was the airbag recall and subsequent modifications to passenger airbags that are noncompliant in New Zealand.

The IMVIA is working with the MIA and the NZTA to come up with a long-term solution to deal with the situation, in particular a code of practice to deal with imported used cars that are subject to the recall.

In other business at the meeting, the board gave its approval for its policy advisor, Kit Wilkerson, to continue his research into long-range planning for ITS and EV infrastructure, and for communications manager Claire Hamilton to develop a wider range of communications channels and a refreshed brand presence in line with the Association’s strategic goals.

The event also featured a cocktail party at the end of the first day, where those at the meeting, plus some invited guests and IMVIA members, could network and discuss challenges and opportunities within the industry.

Presentation is everything M

ore and more potential car buyers are completing their own in-depth, pre-purchase market research these days. In fact, it is predicted that eight out of every 10th person, who visits a dealership in 2017, will be there to view a specific vehicle, which they have found during research online.

This makes the vast majority of visitors to your dealership extremely qualified leads, simply looking for an easy sales process to help them into the vehicle they’ve already searched out. It is therefore critical that you present yourself and your environment in the best possible manner, so as to avoid potentially putting them off doing, what could be relatively straightforward business with you.

When it comes to presenting your dealership in the best possible way, there are four key areas I’ve identified to check off, before that all important customer walks onto your dealership.

Your yard  Make sure that you have your

dealership name clearly visible from the road and easy to find  Ensure you have somewhere for customers to park and that it is well signposted  Check that there is no faded/ peeling paint on your building, signs and/or fences  Remove all rubbish and/or cigarette butts on the ground  Remove any weeds and/or dead plants; Keep lawn strips and gardens tidy  Replace all worn out, tatty flags

 If a customer has booked a test drive for a specific day and/or time, ensure the vehicle is checked over and ready to be easily driven out well in advance.

A poorly presented yard, with any of the above, could give the customer doubts about the quality of the vehicles you are selling.

Your vehicles  Ensure all body

role each staff member plays and if the customer is ignored it’s just another reason not to buy from you.

Your offices  Keep floors and surfaces clear

of any rubbish MARK GREENFIELD

Your team

Motorcentral  Each of the team panels, windows, members should be presentable wheels and tyres are clean  Make sure that all interiors at all times  There should be no smoking are vacuumed and free of any in public view. (A smokerubbish and dirt  Display all vehicles in a uniform free dealership altogether is way which also allows doors even better. On numerous to be opened easily. (There are occasions I have seen many instances where dealers salesmen greet customers just cram far too many vehicles after they have exhaled their onto the yard - this limits the last drag on their cigarette – customers viewing ability) not a great look, or smell)  Make sure that no vehicles have  If you have a uniform, everyone flat batteries and none are out should be wearing it in of fuel. (There is nothing worse accordance with your policy  Ensure personal hygiene is than seeing a customer waiting maintained to test drive a vehicle when that  Enforce a company policy that vehicle’s bonnet is up with the EVERY staff member MUST jump pack attached and the acknowledge and welcome any fuel flap open)  CIN cards and other window person that has taken the effort materials should be clearly to visit the dealership. The displayed. customer doesn’t know what

We can't all have the most luxurious dealerships, such as this one in Abu Dhabi, but you can make it appealing to your customers by keeping it clean and tidy

 Ensure toilets are clean and

tidy, with soap, paper towels and toilet paper  The customer's waiting room should be inviting and comfortable  Ensure kitchen is clean and tidy, especially if visible to customers  Every room should be clear of unnecessary paper work and clutter  Remove any offensive artwork, dead plants or otherwise offputting accessories.

The reality is that you and your colleagues will not be consciously aware of some of the issues that are possibly putting your customers off purchasing a vehicle from you. But, again as per my previous article last month, because the investment to get the customer to enquire and then visit your dealership is significant, it’s very important to take the time to review your presentation on-site, especially from the customers’ perspective across these key areas.

If these areas are maintained, checked and addressed daily then you should be another step closer to ensuring your customers experience is appealing and as a result, you are selling more vehicles.

Anywhere. Anytime.

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

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13

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News in brief Ford increases focus on safety Ford has introduced a new safety system to prevent drivers entering one-way streets.

Wrong-Way Alert uses a windshield-mounted camera to identify Do Not Enter or Wrong Way signs, which are then paired with data from the car’s navigation system.

If the car starts driving against the flow of traffic, the system will give the driver visible and audible warnings.

However, the system doesn’t stop the car from driving on the wrong side.

Ford has also released Evasive Steering Assist as a supplement to automatic braking. The system relies on radar and cameras in the car to prevent a collision when the brakes alone aren’t enough to stop the car, by turning the steering wheel.

The marque will continue to focus on improving current safety systems, including camera-based adaptive lighting. The technology dynamically widens the high-beam headlights at roundabouts and intersections, as well as using “spot lighting” which detects pedestrians with an infrared camera and highlights them with the headlights.

Ford plans to bring the technology to market within two years.

Direct RORO service for Tauranga

Industry exec shaves for a cure

G

ordon Shaw, chief executive of Vehicle Inspection New Zealand (VINZ), has had his trademark beard shaved off, along with his hair; all in the name of charity, in the lead up to Movember.

At the beginning, Shaw stated he was willing to have all of his hair and beard removed, but only if the $2500 fundraising mark was reached. This was achieved after only a few days.

The big shave off took place on Monday 31 October at VINZ’s head office in Auckland, and marked the beginning of a number of challenges which take place throughout Movember at VINZ testing facilities across the country.

“I chose the Cancer Society as the charity to raise funds for, as I have lost friends and family to cancer and wanted to raise as much money as possible for the 14 www.autofile.co.nz

cancer society” says Shaw.

“Everyone has been touched by cancer in some way or other and the Cancer Society do a fantastic job across many areas, from research and education through to palliative care, so it’s important to raise awareness for this worthy cause.”

The Cancer Society’s community fundraising coordinator Sue Beuvink, had the honour of ‘first cut’ to start the shave and a number of VINZ staff lined up after her to ensure it all went. The fundraiser, coordinated through the Givealittle web site, raised $4,485 for the Cancer Society.

“This was a very painless way of raising cash and awareness of an amazing organisation and I was happy to oblige” said Shaw.

To find out more about Movember, visit https:// nz.movember.com.

Jacanna Customs and Freight (Jacanna) has started offering clients a direct delivery service from Japan to the Port of Tauranga, pictured, using roll on roll off (RORO) car carriers.

The last company to offer a RORO service from Japan to Tauranga direct was Kiwi Car Carriers (KCC) who ceased running the service in June 2012 Ken Quigley, managing director of Jacanna said “Vehicles purchased in Japan for delivery to the Bay of Plenty in containers would normally take up to eight weeks, this RORO option will reduce this to three weeks so saving time and handling. We believe it will be a good move for us, Tauranga alone is a significant market, but when you add in the surrounding areas of Rotorua, Whakatane and Taupo it makes a sound business case to go there directly from Japan. We have a number of clients keen to use the service so as long as the support continues we’ll continue to offer it.”

In terms of market size, since KCC stopped running the direct service to Tauranga in mid-2012 there have been around 27,000 used imported passenger vehicles registered in Tauranga and Rotorua, for the last 12 month period an average of 648 used cars have been registered there each month.

“It’s a strong market, says Quigley, and one we hope will develop once people know the direct service is available, and there are more benefits than just saving time and the advantages that go with that. The Bay itself will benefit from additional ships calling at the port, compliance shops in the area will have more to work and downstream support businesses will get work as well.”

The first of the vehicles to use the service left Japan in early November.

new cars

Luxury car maker to launch ute M

ercedes Benz has announced plans to close what it describes as one of the last gaps in its portfolio with its new X-Class.

Volker Mornhinweg, head of Mercedes-Benz Vans, says the company’s first ute, set to be launched in late 2017, will “open up and change the segment of mid-size pickups – with the world’s first true premium pickup for the modern urban lifestyle.

“Our future X-Class will be a pickup that knows no compromise.

Ladder-type frame, high-torque sixcylinder engine, and permanent allwheel drive are compulsory for us.

“As an added value, we bring safety, comfort, agility and expressive design – in other words, everything that distinguishes

vehicles bearing the Mercedes star. We will thus appeal to new customers who have not considered owning a pickup before.”

The X-Class will come in two design variants – the Adventurer, pictured, and the Explorer.

The Adventurer will possess all the strengths of a classic pickup – tough, functional and strong, while Mercedes promises the Explorer will go a step further and demonstrate what will distinguish the model from the rest of the market.

It says the X-Class will feature especially constructed suspension with wide axles, a five-link rear axle

New benchmarks promised

H

olden has released the first details of its nextgeneration Commodore, a car it promises will set new benchmarks in its segment for technology, style, practicality and driving dynamics.

Headlined by the V6 flagship model, the new Commodore will be the most technologicallyadvanced Holden ever.

Holden says the car will feature a cutting-edge all-wheel-drive system channeling 230kW of power and 370Nm of torque to the road, combined with adaptive suspension technology, a company-first ninespeed automatic transmission and torque-vectoring all-wheel drive, which will enhance Commodore’s reputation for driving dynamics and on-road refinement. It will also feature active fuel management technology.

The new model will be much lighter than the current Commodore, with lightweight construction saving 200-300kg in weight.

Two-litre petrol and two-litre diesel front wheel drive models will also be available, while body styles include a liftback and sportswagon.

Based on General Motor’s new ‘E2’ global architecture, engineered in Germany and shared with the Opel Insignia, the new Commodore has been co-developed under the watchful eye of Holden’s Australian engineers.

“Holden has been engaged in this programme from the outset to ensure the next-generation Commodore lives up to its legendary nameplate,” said Jeremy Tassone, Holden’s engineering group manager for vehicle development.

“Our engineers have ensured the new model has specific Holden DNA and continue to do extensive tuning and development.”

The new Commodore will be launched in New Zealand in 2018 and information regarding pricing and specification will be confirmed closer to that time.

with coil springs, and a precisely calibrated spring/damper set-up to ensure a high ride comfort – on and off the road.

Customers of the X-Class will be able to choose from different equipment scopes to customise the exterior and interior.

Variety will likewise distinguish the engine range.

The top-of-theline model will be powered by a V6 diesel in combination with 4MATIC permanent all-wheel drive. The high-torque engine will provide high driving dynamics on and off road, while the all-wheel-drive system will combine an electronic traction system, a transfer case with reduction

gear, and two differential locks.

Under extreme off-road conditions, the rear differential and the inter-axle differential can be locked, making it possible to safely master difficult obstacles and inclines. The powerful drive system and the tough ladder-type frame will make a payload of more than 1.1 tonnes and a towing capacity of up to 3.5 tonnes possible.

There will also be a host of interior components from the Mercedes C-Class and V-Class, found in the X-Class– from the highquality materials and infotainment system to ergonomic seating.

New Zealand and Australia are two of the key markets Mercedes is targeting with the new release, the others being Argentina, Brazil, South Africa and Europe.

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15

motorsport

A young man in a hurry At an age when many of his mates are engrossed in exams, girls and parties, 16 year old Marcus Armstrong is about to take an important step in his motor racing career.

T

oughened over years of kart racing, the traditional foundation for any race driver, Christchurch-born Marcus Armstrong has amassed more experience – and more race wins – than many drivers twice his age. He is a young man in a hurry.

Since 2010, he has won seven national karting titles, and raced in Formula Ford as well as the Toyota Finance 86 Championship, racking up race wins, podium finishes and fastest laps at every series.

This year, Armstrong has been living in Great Britain and bumping wheels with the world’s fastest kart racers in a drive with the famous TonyKart team. With the karting championships ending, he made his next move – a single-seater racing debut in Formula Renault 2.0 NEC. Joining front-running championship team R-ace GP, he took the step at the fearsome Nurburgring, where the category races on the full Formula One circuit.

The step is not one taken lightly: adapting from karting directly to a car with an aerodynamic package, with full-size slick tyres, Formula 3-style brakes and a composite chassis. All at the second-to-last round of a major pan-European

championship, and in one of the top teams.

“I’ve done a fair bit of testing in Formula Renault cars but that is never the same as actual racing.

The Nurburgring was a pretty challenging place to have my first run in a ‘wings and slicks’ car for sure, it’s very fast and the weather wasn’t good,” he said.

The weekend was a revelation to the series regulars and the assembled media. A kid from New Zealand, qualifying in the top ten, and engaging in a race-long duel with one of the quicker, more experienced drivers in the series?

Unheard-of, but certainly in the spirit of Kiwi motorsport pioneers like Hulme, McLaren and Amon.

Forced to quickly to learn how

to get fast, clean starts among a grid of 27 aggressive series regulars, word was soon out: this is a talent on the rise. On the second day in thick fog and on a circuit with extensive damp areas, Armstrong carved his way through the field to fourth, just short of a podium finish.

“I was really pleased with what we achieved there, the team was excellent and the car they gave me was very good,” he said.

“Every time we go to a singleseater race I learn more and more, and getting plenty of experience on wets in such a competitive environment has been invaluable.”

Armstrong says the hardest thing has been adjusting back into

karting between rounds – but that is something he’s not expecting to have to deal with too much longer.

This month, he confirmed he has signed to contest the Toyota Racing Series with champion team M2 Competition. The team ran British driver Lando Norris to the 2016 series title and has also run Pedro Piquet, son of three-times Formula One World Champion Nelson Piquet. Both those drivers have confirmed to return and will race alongside Armstrong.

Formula Renault uses race cars built by Italian company Tatuus which are broadly similar to the type used in New Zealand’s own Toyota Racing Series, meaning Armstrong’s recent single-seater experience is likely to stand him in good stead in January when the Toyota Racing Series gets under way at Ruapuna.

Marcus with father, Rick

SpecialiStS in

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Racing for the Tony Kart team in the 2016 European Championship

motorsport

Pukekohe V8s under threat

R

ed Bull V8 Supercar If the ATEED/Auckland driver – and former Council funding is pulled, the Manukau resident V8 category may abandon - Shane van Gisbergen won this country for a cash-rich a race, posted two second southeast Asian nation like placings and a third and Malaysia. It could also look to became the first Kiwi to lift another New Zealand circuit. the Jason Richards Memorial The most likely, Hampton Trophy. More than 100,000 Downs, is owned by multipeople went in and out of millionaire Tony Quinn. He has Shane van Gisbergen with the Jason Richards Memorial Pukekohe over three days, and Trophy from the recent ITM400 at Pukekohe completed the extension of the a massive trans-Tasman TV circuit to a length acceptable to audience watched the action.

Events and Economic Development V8 Supercars but there is little love But hard on the heels of the (ATEED) has said it needs to look lost between V8 Supercars and the successful ITM Super Sprint closely at its funding before Quinn camp. weekend at Pukekohe Park confirming any support beyond 2018 Quinn bracketed this year’s V8 raceway there is speculation that when the current agreement runs out. race at Pukekohe with two of his New Zealand’s round of the V8 One major concern cited by premier ‘101’ race weekends for Supercar Championship may be chief executive Brett O’Riley is a the Australian GT race car series. under threat. downturn in reported spectator The New Zealand rounds run at Auckland Council offshoot numbers from 116,554 last year to Hampton Downs and Quinn’s other organisation Auckland Tourism, 106,753 this year. circuit, Highland Park at Cromwell.

German brands withdraw from global championships

C

ar companies have long been aware of the old adage ‘race on Sunday, sell on Monday’. But for the VW Group, the reverse appears to have come true.

With the first $USD14.7 billion settlement of class action over the group’s ‘dieselgate’ debacle still making headlines around the world, VW announced that the Audi brand would exit the FIA World Endurance Championship (WEC), effective at the end of the current season.

Audi’s WEC budget is believed to be $US200-300m per year.

That leaves two-times championship winners Porsche as the group’s premier flag-bearer in the championship and six Audi drivers without drives for 2017. The

World champ Sebastien Ogier may be stuck in the mud for 2017

company is moving the Audi brand to the all-electric Formula E, where the price of manufacturer admission is $US25m but budgets are capped at $US3.5m a year.

Palmerston North-born Porsche factory driver Brendon Hartley’s contract is believed to be safe.

Then the company announced its four-times world champion rally team would leave the World Rally

Vehicle Inspection NZ

Championship – again effective at the end of the current season.

The VW team runs on around $US100m a year. Its 2017 car, now in testing, is likely to be shelved.

Two of the quickest drivers in the championship are scrambling to find other work at the very end of the championship contract silly season.

In each case the withdrawal is ‘a refocussing of priorities’ and assurances are given that staff are being redeployed.

Hayden Paddon and John Kennard, New Zealand’s most successful rally driver-navigator pairing, are unlikely to be affected.

Paddon signed a three-year contract with Hyundai at the beginning of 2016.

SPEED DIARY 11-12 November Australian GT - Highlands Park, NZ 13 November Formula 1 - Brazilian GP, Brazil NASCAR Sprint Cup - Phoenix, USA MotoGP - Valencia GP, Spain Australian GT Endurance - Highlands Park, NZ Super GT - Motegi, Japan 18-20 November GT - 2016 FIA GT World Cup, Macau WRC - Rally of Australia, Australia 20 November NASCAR Sprint Cup - Homestead, USA 22-25 November WTCC - Losail, Qatar 25-27 November Supercars - Homebush, Australia 27 November Formula 1 - Abu Dhabi GP, U.A.E Thoroughbred & Classic Car Owners Club - Pukekohe Park Raceway 27 Nov - 04 Dec Silver Fern Rally - South Island 09-11 December Asia Pacific Rally Championship - India 10 Dec Teretonga Sprints - Teretonga 11 Dec Thoroughbred & Classic Car Owners Club - Hampton Downs 17 Dec Elite Training Services Circuit Tarmac Rally - Manfeild Track Day Series Round 5 - Manfeild 6-8 Jan Tasman Revival - Bruce McLaren MotorSport Park, Taupo 12-15 Jan MNZ Race Championship - Ruapuna 13-15 Jan Tasman Revival - Hampton Downs 19-22 Jan MNZ Race Championship - Teretonga 20-22 Jan WRC - Rally Monte-Carlo NZ Festival Of Motorsport - Hampton Downs

Delivering fast, efficient entry certification talk to the specialists

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17

industry profile

Achieving the impossible

T

hanks to his innate ability to lead a team and a motivation to succeed in everything he puts his mind to, Steve Kenchington was nominated as head boy at St Peters College in Palmerston North.

This position would herald the beginning of a successful career at the head of some of the country’s top businesses. “School didn’t suit me, to be fair. I loved my sport and I suppose I displayed some leadership qualities but I didn’t quite know what I wanted to do with my life”, he says.

It wasn’t until he began his first job as a stock and station clerk for Elders Pastoral that he had a good understanding of exactly what he didn’t want to do with his life.

“Moleskins and counting sheep really wasn’t my scene, so I started looking for something that might be more appealing.”

In 1987, he was offered a job at Australian Guarantee Corporation (AGC) as a collections agent - a role which would begin a lifelong interest in the finance industry.

During his time at AGC, Kenchington was given the opportunity to up-skill in a variety of areas.

“AGC was great for developing and training people. I covered all aspects of the business from commercial, to dealer direct and everything in between.”

It was this experience that would hone his leadership skills

18 www.autofile.co.nz

and drive him to build a marine finance division within the business.

“AGC taught me a lot in terms of how to run a business, watch costs, focus on KPIs and work on unique selling propositions.

I learned how to keep it simple, which was a massively important learning curve.”

By 2001, Kenchington was the national sales manager for dealer operations; running a sales force of 12 account managers and a portfolio of $300 million, but it was time for him to spread his wings and test himself in a larger market.

One of his key accounts, Continental Cars, needed someone to run its Peugeot distribution and he became managing director for Sime Darby in October 2001.

“It was my first introduction to distribution and I ran the business for six years,” he says.

During that time Peugeot quickly became the number one European marque in New Zealand and sold approximately 1,400 cars.

“I thrive on turning something small and broken into something that can flourish.”

– Steve Kenchington

Kenchington with the Volvo XC90 which took out the overall title at the 2015 AMI Insurance NZ Autocar Car of the Year Awards

“I thrive on turning something small and broken into something that can flourish and I believe I did that with Peugeot. It was a major achievement for a French marque to be number one in New Zealand. Maintenance doesn’t spin my wheels, I like to be able to make change and grow something.”

In 2007, he was approached to travel to the UK and help a distressed finance company recover. He moved, with his family, to live in London, while he took over as sales and marketing director for British Credit Trust.

Unfortunately, after three and a half years, the global financial crisis had taken its toll and the business closed.

“The global financial crisis was a very challenging environment for me. I had a young family and the financial services market was crumbling at my feet. I learned very quickly that while things can change quickly, you 

industry profile

t can never be sure what is going to happen next and you need to be adaptable. I became very operational as a consequence of that and worked on saving cash and reducing overheads, while improving productivity and increasing income.”

By this time, a range of top businesses had closed in New Zealand, including GMAC, Ford Credit and Frontline. There were not many roles available back home, in terms of motor distribution, until Richard Giltrap offered him a job that he couldn’t refuse, where he would be given the opportunity to help recover Volvo and Renault.

“It was definitely the biggest challenge I have ever had.”

At the time, Volvo was selling 100 cars a year and Renault was turning over even less, in terms of sales.

“The next five years were really about understanding what fitted into our business and Renault didn’t”, so he decided to transfer the ownership of Renault and focus on Volvo.

“Trying to turn a niche brand into something that is desirable to a wider audience can be incredibly difficult, but we achieved it and now Volvo is the fastest growing luxury brand in the country. It will easily sell a thousand cars a year and is back on the map.”

Nine months ago, Kenchington took over the role of general manager for Motorcorp Distributors and is now in charge of enhancing the growth of Jaguar and Landrover, with management of Volvo being handled by Coby Duggan.

“Although Jaguar and Landrover

are very successful already, there are still a lot of challenges to overcome in terms of continued growth, developing networks and being able to cope with growth.

These are all very exciting.”

He believes a lot of his success is thanks to a good understanding of brand and marketing, as well as his experience working in a retail environment.

“Brand takes time to develop and you need to work on what I would call ‘brandtail’. You need a strong brand message with an excellent retail offer in order to continue improving your sales message”.

The brand has already doubled in size, since 2013, and Kenchington aims to look at doubling the sales again, within the next five years, and working towards becoming the best luxuryvehicle distributor in the country.

“It will be all about up-skilling our people, upgrading the facilities and continuing to promote the brands by building the brand equity for both vehicles.”

Although he has achieved a lot, the high flyer still has a lot of plans for the future, which he believes will include a very quick transition from petrol-powered to electric and autonomous vehicles.

“The developments are significant and the government is really getting behind the changes.

“You can’t continue to ignore the growth of EVs. New Zealand is well prepared for the changes, thanks to our ability to create electricity out of natural resources.

It makes perfect sense, as long as they can produce vehicles that fit within our lifestyle.”

After a lifetime of achievement both here and overseas, Kenchington is now spending a bit more time enjoying time with his two children, who have both chosen a slightly different path from their father.

His 20-year-old son is studying adventure-tourism management.

“He is a free spirit and loves the outdoors. He doesn’t like the idea of what dad does, being in the office, and he is doing extremely well in Queenstown.”

Meanwhile, his daughter is in her final year at Baradene College.

For now, the father of two intends to make the most of the beautiful weather and aims to complete all of the great walks and bike tracks the country has to offer.

“I will be walking the Milford Track with my father at the end of November, which I’m really looking forward to and I’m really enjoying the time back at home with my family”.

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19

news looking back

The month that was.... November With more than 30 years of history, Autofile is delving into the past to see which stories previously made headlines November 4, 1996

November 16, 1998

Toyota still unsure on used imports

Ford and CMC unveil radical dealership plan

Will they or won’t they? That’s the question the entire industry has been mulling over since the Toyota Used Cars Sales Co, a subsidiary of Toyota Motor Corp in Japan, announced last week it would sell 3,000 used imports a year on the New Zealand market.

Toyota New Zealand (TNZ) refused to confirm or deny the Reuters statement, but a number of its dealers have told Autofile there is no truth to the report.

TNZ managing director, Bob Field, said it would be another month before any announcement would be made.

However, Field did say TNZ was close to the end of trials it has been holding and that it had been taking cars from a number of different sources in Japan.

There was no suggestion, he said, that TNZ would seek to split its dealer network into those selling new Toyotas and those selling used imports.

While many dealers believed Toyota had yet to make a final decision on its plan to import used vehicles, at least one industry observer believed it was a “done deal” and used imports in volume are on their way.

Ford New Zealand is leading the way into the new millennium with a new strategy for its Auckland dealer network that is revolutionary in this country.

Ford is setting up a joint venture company with Colonial Motor Company (CMC), which is the country’s largest owner of Ford franchise dealerships.

Together the two will establish a Ford Retail Network (FRN) that will, in effect, own and operate six Auckland Ford dealerships as a single entity.

The dealerships involved are both branches of John Andrew Ford, East City Ford, West Auckland Ford (also with two branches) and South Auckland Motors.

Ford NZ’s managing director, Nigel Wark, told Autofile that the aim is to improve the outcome for the customer.

He said that with a single organisation, Ford can move more consistently in one direction, with one leadership team.

This maximises the advantages of belonging to a worldwide network and gives customers a better deal.

There will be no immediate, outward difference. Wark said it will be a lengthy process, taking up to three years to complete.

SPECIALIST SERVICES ARE YOU PREPARED FOR THE NEW HEALTH AND SAFETY REGIME? By 2020 the government aims to achieve a 25% reduction in workplace injuries.

New rules to achieve this goal were introduced on April 4. Are you ready?

The Imported Motor Vehicle Industry Association is ready to assist, and has prepared – in conjunction with experts HRtoolkit – packages to assist car yards, workshops and compliance workshops.

For more information…

Contact: Malcolm Yorston on 0800 046 842 or DDI 09 573 3243 Email: malc@imvia.co.nz 20 www.autofile.co.nz

November 10, 2006

Fuel efficiency labelling for vehicles?

Climate Change Minister, David Parker, has released a discussion paper regarding a mandatory fuel economy labelling scheme for vehicles at point of sale.

The new proposal aims to aid the reduction of greenhouse gas emissions and the improvement of air quality by informing consumers about the fuel efficiency of vehicles they’re considering purchasing.

The discussion document suggests labels could be attached to vehicle’s windscreens, with another possibility being cards displayed in vehicle windows at sales yards. The labels could display annual fuel costs, litres used per 100km, or a star rating comparison.

Motor Trade Association communications manager Andy Cummings saw merit in the idea for new cars but said trying to assess the fuel efficiency of used imports could prove confusing and misleading.

Perry Kerr, chief executive of the Motor Industry Association, took the opposite view.

He said research showed that by the time someone got to a new car dealership, they had already made up their mind as to the make, and often the model, they were going to buy. However, he believed labelling would be effective in the second-hand market.

Vehicle listings health check

Natalie Beckham dealer support manager natalie.beckham@trademe.co.nz

A

re your listings performing well for you? If they are they’ll be generating plenty of leads for you to convert to sales, if they’re not it could be time for a listing health check-up.

DealerBase has a quick and easy to read dashboard to help point you in the right direction, if your stats are underlined in red or orange your listings need work.

There are stacks of other insights here that you might find useful too.

How much time do you actually spend on your listings – do you throw together the bare minimum information with one or two average images, call it a listing and hope for the best? Or do you spend some time crafting your listing calling on your industry knowledge and vehicle expertise to write the content?

It’s no secret that not all listings are created equal and just like a great garden the more care you put into the groundwork the better the end result will be.

Being too busy to spend time on your online listings is similar to telling a walk in customer you don’t have time to show them the vehicle they are interested in, this is not a great experience for a consumer and they will soon move on to another seller that makes the time.

An online listing, simply put, is a written online version of how you would sell that vehicle to someone physically on your yard.

Because an online consumer is only a click away from leaving your listing, you need to take steps to keep them there and engaged, take them on a virtual tour around the vehicle using good quality

October statistics

photos and/or video, indicating all the selling points.

When taking your photos, focus on both quality and quantity. Move the vehicle away from others so the vehicle you are listing is the star of the shot, a busy background distracts the eye and takes the focus off the subject. Above all make sure the vehicle is presented well, clean and tidy both inside and out.

Take photos of everything a consumer would usually look at in

person; exterior, interior, wheels & engine bay, if it has a reversing camera, take a shot of that too, as the old saying goes a picture speaks a thousand words, so use all 20 photos spots available to you.

Don’t hold back on listing all the features of a vehicle, you don’t know what a buyer may be looking for, if someone is looking for a specific feature like traction control, air conditioning or NZ new and you haven’t included that information,

“With quality listings you will generate quality leads leaving you free to spend more time doing what you do best, closing sales.”

Most popular car makes searched*

Most popular car models searched*

Most popular body styles searched*

Most popular makes of motorbike searched*

1 Toyota 2 Nissan 3 BMW 4 Ford 5 Mazda

1 Golf 2 Hilux 3 Corolla 4 Commodore 5 Skyline

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

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

your listing won’t even make the shortlist, consumers very rarely call or email to ask about features, they simply move on to a listing that does have the information they want included.

Promote the fact that you’re a registered dealer, automotive dealers are held to a very high standard in New Zealand so why not use it to your advantage as a selling point, use your standard vehicle text to write about the benefits a consumer gets buying from a dealer.

A guaranteed clear title and CGA protection is a selling point a private seller can’t compete with.

Do you have shipping options or offer airport pick up’s for out of town buyers, do you offer finance or warranties? If yes, include this information too as people will travel to get their desired vehicle. If someone is browsing vehicles outside of office hours, it’s important to pre-empt and answer all the questions they might have, take out the guess work so you make the cut.

Our friendly dealer support team are only a phone call or email away if you want to chat about your listings.

With quality listings you will generate quality leads leaving you free to spend more time doing what you do best, closing sales.

Highly sought after, the Ferrari F40 is considered one of the greatest drivers cars in the world and on the wanted list of many a car collector. Finding one for sale is extremely rare but a 1989 example has been listed on Trade Me Motors. The 471hp twinturbo V8 supercar has a top speed of 324kph.

Park it in your garage for just $1,595,000.

*in October 2016 on Trade Me Motors

www.autofile.co.nz

21

labour market report

Employment numbers up for 2016 A

ccording to Statistics NZ, paid employment is at the highest it has been for almost a decade, with median weekly earnings rising by $44, to reach $924, between the June 2015 and June 2016 quarters. This was the largest annual increase since the June 2007 quarter.

“A rise in the proportion of full-time wage and salary earners, and the number of hours being worked, together pushed up median earnings for workers,” labour and income statistics manager Mark Gordon said.

The unemployment rate has also fallen to 4.9 percent in the September 2016 quarter (from a revised 5.0 percent in the previous quarter). This is the lowest unemployment rate since the December 2008 quarter.

There were 3,000 fewer people unemployed than in the June 2016 quarter and 10,000 fewer over the year.

The future is also bright for new businesses, with the latest business demography statistics showing that there were 515,050 enterprises in NZ, as of February 2016. This was an increase of 1.6 per cent from the previous year, with 2.1 million paid staff - an increase of 2.4 per cent in the same period last year.

Regionally, Auckland and the Bay of Plenty had the highest growth in the number of business locations, with increases of 3.3 per cent and 2.4 per cent respectively. More than a third of all staff in NZ, as at February 2016, worked in Auckland and employment numbers were up by 3.8 per cent - with 27,000 new roles available, compared to the same period in 2015.

Canterbury was the secondlargest region when it comes to new business locations and job opportunities. There was a one per cent annual rise in both,

which was lower than the previous three years, where Canterbury business numbers and new job opportunities rose by three per cent, on average.

Business Register manager at Statistics NZ, Mary Reid, said “of the 19 industries, 16 had more enterprises and all except mining had more staff than they did a year ago.”

When it comes to building a business, the figures are looking good - with 84 per cent of new enterprises surviving a full year, from February 2015 to February 2016. For the fourth year in a row, more businesses are starting up than shutting down.

According to the Ministry of Business Innovation and Employment (MBIE) Jobs Online Report, the number of online job advertisements rose by 0.5 per cent in September 2016, and by 12.5 per cent over the year to September. The hospitality and

tourism industry experienced the highest rise of 2.2 per cent.

Annual wages have also increased, to 1.6 percent, with private sector wage inflation remaining at 1.6 per cent and public sector wages increasing by 1.7 per cent.

The increase in the public sector was influenced by collective agreements for nurses, primary teachers, and the police. This had the effect of making wage inflation higher in the public than the private sector for the first time since the June 2010 quarter.

MBIE’s labour market trends manager, David Paterson, says the occupation groups with the largest monthly increases were sales and managers, which were up 1.3 per cent and 0.9 per cent respectively. Job advertisements rose in most skill levels, with the biggest increases for unskilled and low skilled jobs, which were up 0.9 and 0.8 per cent.

Every vehicle dealership in New Zealand should own this book Half-cuts, double invoicing, speedos, emissions, seatbelts, frontal impact, legislative change. It’s the history of your industry and it’s all in...

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22 www.autofile.co.nz

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f & i focus

Always offer the product I

t is exciting to know that summer is almost upon us and Christmas is just around the corner and by the time you read this article there will be a new president in the White House.

Exciting times indeed!

It is also around this time that the retail bug will be hitting many individuals across the country. Most will by making smaller purchases such as gifts, clothing and camping accessories, although there will be many stepping up to purchase larger luxury items like a new car.

Whether it is to impress the family and friends or to go on that summer roady your customers may get wrapped up in the excitement and not be looking beyond the first initial deposit and often stretching themselves beyond their budget.

You may think ‘well that is not the

dealership’s call’ or ‘the make no attempt to responsibility lies with explain it and offer it your finance provider’ to to a finance customer, make that call. then you may be at Protecta would beg risk of further action to differ here and just should the customer bring to the table some eventually default on advice we offered the loan due to an at a recent Business event that would have Simon Moore Managers Forum been covered under Motor-trader development manager held in Auckland, the policy.

Protecta Insurance in conjunction with This is nothing new one of our finance partners. A to New Zealand with documented statement was made that under cases dating back long before the the responsible lending guidelines, responsible-lending guidelines if you have a credit-related were issued. insurance product available One such case is of a franchise through your dealership and you where a repeat customer

if you have offered finance to any of your customers, make sure you offer them your available insurance products also

purchased his first and second vehicle on finance, where a Payment Protection Insurance (PPI) policy was included in the payments. In the process of buying his third vehicle, he requested the same contract although the new business manager failed to include PPI and it wasn’t picked up at the time of signing and delivery.

Unfortunately the customer developed a terminal illness and was shocked to find the insurance was not included. Long story short, through the disputes process, the dealership was ordered to repay the loan in full and the customer retained the vehicle.

So, all we ask is that if you have offered finance to any of your customers, make sure you offer them your available insurance products also.

Have a great month and enjoy the lead in to summer!

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23

disputes

Full refund rejected despite buyer not being told car imported damaged Background

The case

Sarah Rowe (nee Ong, at time of purchase) bought a 2008 Suzuki Swift Sports hatchback for $16,990 from Metro Motors Hamilton (2011) on July 20, 2013. The odometer, at the time of sale, was 56,856km.

Rowe said that the Consumer Information Notice displayed with the car, signed on behalf of Metro Motors Hamilton, showed the car (a Japanese import) had not been imported as a damaged vehicle.

She said she only found out in June 2016, after going to trade the car in, that it had been “flagged” by the New Zealand Transport Agency (NZTA) as “imported damaged” and that Metro Motors had misrepresented that fact to her when she bought it.

In seeking a remedy under the Fair Trading Act 1986, Rowe wanted to have the agreement to buy the car declared void and Metro Motors ordered to repay the full purchase price.

A representative from Metro Motors admitted that Rowe had been unintentionally misled when they incorrectly described the car as not imported as a damaged vehicle. The representative claimed that they were unaware the car had been imported damaged and that as Rowe had owned and used it for three years, during which time she had more than 66,000km of relatively trouble-free motoring, it would be unfair to order it to refund the full purchase price now.

The tribunal heard that Rowe would not have initially considered buying the car if she had known it had been imported damaged, because of the risk to her family travelling in such a vehicle.

Following a request from Rowe, the AA’s Hamilton mobile inspector provided a report on the car on July 7, 2016, when its odometer was 122,453km. Apart from a photograph of body alignment clamp marks taken by the AA inspector and included in the AA report, the AA inspector did not, in his report, identify the repairs done to the vehicle as either a potential warrant of fitness defect or a defect requiring further investigation or repair.

After discovering in June 2016 that the car had been damaged in Japan prior to its importation and sale to her in July 2013, not only did Rowe continue to drive it, she did not take steps to have a panelbeater or engineer examine the repairs and report on the nature of the damage and whether it made it unsafe to use.

When Rowe and her husband decided to trade the car in they took it to a dealer, who initially offered them $9,000. However, after finding that the car had been imported damaged, the dealer withdrew its offer. Rowe claimed that dealer was then only prepared to offer $1,000 for the vehicle for parts.

Metro Motors Hamilton manager, Craig Stewart, told the

MEDIATION SERVICE

tribunal that on July 4 2016 he met with Rowe and her husband, who told him they wanted a settlement of $11,000 for the car. Stewart offered to buy the vehicle back for $10,000 and gave the Rowes time to consider his offer. However, he said it was rejected, with Rowe wanting $12,000. A further discussion between the parties occurred on August 1, at which time Rowe said she wanted a full refund of the purchase price.

Stewart said that he considered the current value of an undamaged 2008 Suzuki Swift with 126,000km on its odometer was probably about $9,000 to $10,000. He produced copies of advertisements as a basis for that claim. He also said that the result of the vehicle being flagged as damaged reduced the car’s value by $4,000.

The finding As the car remains flagged as damaged, the tribunal accepted that it was probable Rowe would have difficulty selling it, as while a private buyer may consider purchasing it, most dealers would not.

In determining the appropriate remedy, the tribunal considered a number of factors, including that Rowe did not provide any evidence to establish the vehicle’s current value.

It also noted that no evidence was provided to show that the damage the car had sustained made it unsafe to drive and that

FACILITATING RESOLUTION 24 www.autofile.co.nz

buyer wanted a The case: The d of what she paid

complete refun for her car after discovering it had been imported damaged. The dealer admitted it unintentionally misled the buyer but said that the buyer had owned and used the car for three years, so a full refund would be unfair.

n: The authority The decisio had provided three

ruled the car years motoring and ordered the dealer to pay $4000 damages for loss of the car’s on-sale value. r Vehicle Disputes At: The Motoland Tribunal, Auck

Rowe had used it for about three years to travel 66,000km. With that in mind, the authority considered that it would not be equitable to order Metro Motors to refund the full purchase price.

The tribunal said the vehicle had passed three warrant of fitness inspections after Rowe bought it in 2013, so it was probably safe to be on the road.

The only expense Rowe appeared to have incurred, the authority said, apart from a service, was for the replacement, in July 2015, of the shock absorbers and springs. The car’s suspension had been lowered by Rowe’s husband and the replacement of the shock absorbers reflected the vehicle’s age and the distance it had travelled and was, in the tribunal assessor’s view, a result of normal wear and tear.

The verdict The tribunal ruled that Metro Motors should pay Rowe $4,000 immediately as damages for the loss which, in the absence of any reliable valuation evidence, it considered would be the loss she will probably suffer when she sells the vehicle.

disputes

Dealer did not misrepresent car imported as statutory write-off Background Cynthia McNicol bought a 2011 Holden Commodore SV6, sight unseen, for $24,995 from Market Cars Ltd on October 5, 2015. The vehicle, an Australian import, had 120,300km on its odometer at the time of sale.

McNicol said she was aware when she bought the car that it had been stolen in Australia and recovered before being imported into New Zealand. However, she said she was not told that it was a statutory write-off in Australia and that the dealer misrepresented the vehicle to her by failing to disclose that. She wanted the tribunal to declare the purchase agreement void and have her purchase price refunded.

A representative from Market Cars said that they had told McNicol that the vehicle was a stolen, recovered Australian import - which had cosmetic damage only - and denied that they had misrepresented the vehicle. The representative said that there was nothing wrong with the car.

The case McNicol lives in New Plymouth and is employed in an administrative role by a company involved in converting left-hand drive vehicles to right-hand drive. She agreed to buy the vehicle after seeing it advertised on Trade Me. The vehicle was recorded as stolen in Queensland on March 1, 2015. It was described as damaged by “storm, flood, other” and as a result became a statutory write-off in Australia and unable to be repaired and sold there, except for parts. Photographs shown to the tribunal of the vehicle in

Australia, showed that its windscreen and the driver’s window were both broken, and the console between the front seats was damaged.

The vehicle was sold at auction in Australia and imported into New Zealand in May 2015, where it was inspected at the border. It was “flagged” in the New Zealand Transport Agency (NZTA) system as a “statutory write-off” and was referred to a repair certifier, who saw it on September 15, 2015.

By the time the repair certifier inspected the vehicle it had been repaired, but he was satisfied by the work done, and so removed the “flagging” on the vehicle, so that it was no longer designated as a “damaged” vehicle in the NZTA system, but it was still recorded as a “statutory write-off”.

Market Cars produced a copy of an email dated August 9, 2016 from an NZTA senior customer access representative that stated that although the vehicle border inspection record for the vehicle showed “Water Damage”, that did not mean that the border inspection identified the vehicle as water damaged. The “water damaged” flag was used to attach an Australian Personal Property Security Register (“PPSR”) report to the border inspection record.

The repair certifier appeared at the hearing and gave sworn evidence that there was no water damage to the vehicle he inspected.

When McNicol bought the car in October last year the Consumer Information Notice (CIN) showed the vehicle was not imported as

damaged, which the tribunal presumed was because by the time it was sold the “damaged” flag had been removed in the NZTA system.

On May 21, 2016, McNicol decided to have the vehicle sold on her behalf by another dealer, who requested a Lemon Check report, which disclosed the vehicle was flagged as “flood damaged”.

McNicol then contacted Market Cars and asked if a refund of the purchase price could be organised.

Instead, an offer was made to resell the vehicle on her behalf.

Market Car’s position was that while the vehicle was stolen and damaged in Australia it was not water damaged and any reference to water damage is caused by the unique (and the tribunal thought confusing) manner NZTA chooses, for its own purposes, to classify vehicles where a PDF document is attached to the vehicle’s border inspection record.

The finding The tribunal found that McNicol was aware that it was imported from Australian and had been stolen and recovered, before it was imported, when she agreed to buy the vehicle sight unseen.

A representative said that Market Cars was entitled to describe the vehicle in the CIN as not imported damaged “because of the peculiar system we have in this country whereby a vehicle which is written-off as statutory write-off and not able to be resold in Australia, is able

purchaser said The case:dThe when buying she was misle her vehicle because she was not told it was a statutory write-off in Australia. The dealer said any damage was cosmetic, had been repaired and there was nothing wrong with the car.

r’s n: The purchase The decisiodism issed because application was the tribunal found that she had not been misled by not being told that the vehicle was classified as a statutory write-off. cle Disputes At: Motor Vehiland Tribunal, Auck

to be sold at auction in Australia to a person who can then ship it to New Zealand, import it into New Zealand, have it flagged as damaged, then subsequently following an engineer’s inspection and any repair work, have the damaged flag removed.” However, the statutory write-off designation remains and the cause of that designation may, as has occurred in this case, the tribunal said, have been incorrectly ascribed to flood damage where the nature of the damage was not “flood” but “other”.

After viewing the photographs that displayed the condition of the car in Australia and listening to the repair certifier’s evidence, the authority ruled that the vehicle’s damage was probably limited to a broken windscreen and driver’s window, console damage and scratches - all of which were repaired.

The verdict The authority found that it was unlikely a reasonable person with McNicol’s knowledge of the motor industry would have been misled by the dealer’s failure to tell her the vehicle was a statutory write-off.

The application to reject the vehicle and have the purchase price refunded was dismissed.

Disputes cost you time & money MTA dealer members have access to a free support service.

Visit www.mta.org.nz/mediation or call 0508 682 633

www.autofile.co.nz

25

tech report

Talk to the specialists about entry certification - fast, efficient, professional 0800 GO VINZ (468 469) www.vinz.co.nz

Vehicle Inspection NZ

Aiming for a safer fleet M

y September article on safety sparked more discussion than any article I have written previously.

Most of the feedback was positive, even if the person responding could not bring themselves to agree with the conclusion.

To summarise briefly, I pointed out that research shows the most important factor (excluding driver behaviours) determining the potential for harm in a multivehicle crash is the difference in the mass between the vehicles involved. The obvious conclusion being, a lighter fleet would likely be a safer one.

I thus questioned whether there might be a role for government to promote lighter options, a system-wide approach to safety - as opposed to promoting individual safety, which is leading to ever more massive vehicles. Less massive vehicles are also more efficient, promoting public safety by the reduction of pollutants. Of course, I did not argue that this should happen, only that it seems like an option to explore.

This led to several discussions, the results of which I wanted to share here. First, I want to provide an example of what such a system could look like, and second, I want to illustrate the problem using an analogy.

To develop the general safetybased model further, the liability cost of vehicle ownership would likely be based upon three factors: the mass of the vehicle, the distance/time spent on the road, and driver behaviour.

26 www.autofile.co.nz

Vehicle mass is easy This brings us to enough to determine. the analogy.

Distance/time spent When thinking on the road may about harm that can not be practical to be done by vehicles, measure at present, we can compare but is easily within the them in some sense realm of possibility to weapons. Motor with ITS technology. vehicles have the Kit Wilkerson We are already potential to maim or Policy adviser and analyst kit@imvia.co.nz exploring systems to kill others; there is enable direct road a reason that users user charges and must acquire a licence, automated compliance, which vehicles must be registered, could also be used for these and we require periodic vehicle calculations. inspections.

To rate driver behaviour, Access to firearms, for example, we borrow the expertise of is generally determined by three the insurance industry, and factors: the potential for the gun their already robust ways of to cause harm – big calibres have rating drivers. Insurance rates big cost; how often the weapon is are based on both statistical used – decoration pieces that are expected behaviours, and specific never loaded or touched are less information about each driver. likely to cause harm than weapons Most companies offer significant that are often used; and finally, the savings for those who have never expected or known behaviour of had a transport violation, while the owner – for obvious reasons. repeat offenders who show I acknowledge that the analogy a tendency for aggressive or is not a perfect one. Vehicles serve careless driving pay higher rates. a separate primary purpose, and In summary, the cost of owning most of the harm done involving a vehicle could be based entirely them is not intentional. However, upon these three factors. the realistic and immediate In this scenario, we must ask: potential for harm to others is how would safety features like ESC directly comparable. and airbags affect the rating?

Society generally makes it more Well, they would only be difficult to own weapons that have factored in if they modified one the potential to do more harm. I of the variables. ESC, for instance, think most people would agree modifies driver behaviour to that these measures form at least a mitigate just one form of risky sensible solution to the problem. driving. Features like airbags, while Now let’s look at our current still a useful selling point, protect vehicle ownership model, using only the occupant(s) and do not the gun analogy. form part of this equation.

If vehicles were guns, the cost of

registering a gun would be based upon several factors – including whether you wore bullet-resistant gear while using the gun. This is not to prevent harm from your own gun, but to protect you from others’ use of their guns.

Furthermore, the cost would not be based on your gun’s potential to harm others, but on how likely you are to protect yourself adequately in a firefight.

Finally, to confuse this already convoluted system, we would not rate all guns against each other.

We would have “market segments” in which we divide all guns into groups based upon form and function, then rate them with other guns that are considered alike.

Imagine the confusion when trying to choose your firearm, and finding that on paper, a specialty small game hunting weapon is rated the same for safety as a fully automatic assault rifle – because each is rated as best within its market segment.

I realise I might have used a bit of hyperbole in describing the current system. I must also reiterate the disclaimer I made in my earlier article: I think people are doing what they can to make the current system work. I do not mean to impugn the current system or anyone working on it (and I suppose that would include me).

My goal is to provide different ways of looking at the problem, that offer some different solutions.

We can and should continue to discuss the issue. I am sure the best solution is one we have not yet thought of.

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2 Dec

15 Dec

Nagoya

3 Nov

-

17 Nov

3 Dec

16 Dec

Yokohama

4 Nov

5 Nov

18 Nov

4 Dec

17 Dec

Auckland

20 Nov

19 Nov

7 Dec

18 Dec

6 Jan

Wellington

28 Nov

28 Nov

10 Dec

27 Dec

10 Jan

Lyttelton

26 Nov

26 Nov

9 Dec

24 Dec

9 Jan

Nelson

28 Nov

28 Nov

11 Dec

26 Dec

11 Jan

Port Calls

NZ

JAPAN

Moji

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27

the

c

u

u

d Auckland Hamilton Thames o Whangarei n Tauranga Rotorua Gisborne Napie r New Plymouth Wanganui Palmerston North Masterton Wellin gton Nelson Blenheim Greymouth

Brought to you by

New passenger vehicle registrations by city

ry

Aro

nt

Whangarei Auckland Hami lton Thames Tauranga Rotorua Gisborne Napi e r New Plymouth Wanganui Palmerston North Masterton Welli n gton Nelson Blenhei m Greymouth Westport Christchurch Ti m aru Oamaru Dunedi n I n vercargi l l Whangarei Auckland Hami lton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Welli n gton Nelson Blenhei m Greymouth O cWhangarei Auckland Hami lton6 Thames tob e r 2 01

Used import passenger vehicle registrations by city 5,673

5500

6500

5000

6,335

6000

4500

Auckland

5500

4000 3500

5000

3000 Auckland 2,102

2000

1500

1750

1000

1500 Vehicles sold

Vehicles sold

2000

Christchurch

900 800

1,645

Christchurch

1000 956

900

700

Wellington

800 600

630

Wellington

763

Hamilton

700 538

500

600

Hamilton

400

500

516

Tauranga

300

Tauranga

324

400 378

Dunedin

200

220 199

Palmerston North

100

Dunedin

300

0

290

Palmerston North

200

Oct ‘16

Sep ‘16

Aug ‘16

JuL ‘16

Jun ‘16

May ‘16

Apr ‘16

Mar ‘16

Feb ‘16

Jan ‘16

Dec ‘15

Nov ‘15

Oct ‘15

Oct ‘16

Sep ‘16

Aug ‘16

JuL ‘16

Jun ‘16

May ‘16

Apr ‘16

Mar ‘16

Feb ‘16

Jan ‘16

Dec ‘15

Nov ‘15

Oct ‘15

0

New and used cars registered in October 2016 by region WHA

AUC

HAM

THA

TAU

ROT

GIS

NAP

NEW

WAN

PAL

MAS

WEL

NEL

BLE

GRE

New cars

165

5,673

538

50

324

74

50

167

133

47

199

62

630

102

48

Used cars

297

6,335

763

104

516

133

45

279

205

77

290

70

956

241

Total cars

462 12,008 1,301

154

840

207

95

446

338

124

489

132 1,586

343

WES

CHR

TIM

OAM

DUN

INV

TOTAL

16

4 2,102

67

11

220

113 10,795

60

40

19 1,645

85

18

378

153 12,709

108

56

23 3,747

152

29

598

266 23,504

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Total new cars

Total imported used cars

10,795

12,709

 12.1%

2015: 9,634

 14.0%

2015: 11,149

Thames

Whangarei NEW: 165

2015: 130

 26.9%

NEW: 50

2015: 46

 8.7%

USED: 297

2015: 235

 26.4%

USED: 104

2015: 79

 31.6%

Auckland

Tauranga

NEW: 5,673 2015: 5,032  12.7%

NEW: 324

2015: 271

 19.6%

USED: 6,335 2015: 5,496  15.3%

USED: 516

2015: 456

 13.2%

Rotorua

Hamilton NEW: 538 USED: 763

2015: 479 2015: 676

 12.3%

NEW: 74

2015: 108

 31.5%

 12.9%

USED: 133

2015: 116

 14.7 %

Gisborne

New Plymouth NEW: 133

2015: 127

USED: 205 2015: 182

 4.7%

NEW: 50

2015: 40

 25.0%

 12.6%

USED: 45

2015: 31

 45.2%

Napier

Wanganui NEW: 47

2015: 70

 32.9%

NEW: 167

2015: 146

 14.4%

USED: 77

2015: 73

 5.5%

USED: 279

2015: 233

 19.7%

Masterton

Palmerston North 2015: 185

 7.6%

NEW: 62

2015: 44

 40.9%

USED: 290 2015: 281

 3.2%

USED: 70

2015: 64

 9.4%

NEW: 199

Wellington

Nelson NEW: 102

2015: 86

 18.6%

NEW: 630

USED: 241

2015: 187

 28.9%

USED: 956 2015: 941

2015: 557

 13.1%  1.6%

Blenheim

Westport NEW: 48.1

2015: 3

 33.3%

NEW: 48

2015: 54

 11.1%

USED: 19

2015: 7

 171.4%

USED: 60

2015: 54

 11.1%

Christchurch

Greymouth NEW: 16

2015: 18

 11.1%

NEW: 2,102 2015: 1,860  13.0%

USED: 40

2015: 27

 48.1%

USED: 1,645 2015: 1,439  14.3%

Timaru NEW: 67

2015: 50

 34.0%

USED: 85

2015: 97

 12.4%

Oamaru NEW: 11

2015: 19

 42.1%

USED: 18

2015: 19

 5.3%

Dunedin NEW: 220

2015: 220  0%

USED: 378

2015: 300  26.0%

Invercargill NEW: 113

2015: 89

 27.0%

USED: 153

2015: 156

 1.9%

We can help Dealers sell more cars, faster!

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Find out more at vtnz.co.nz or call 0800 88 88 69

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29

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Imported Passenger Vehicle Sales by Make - October 2016 Make

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

2016 YEAR TO DATE

Imported Passenger Vehicle Sales by Model - October 2016

2016 Mkt share

Make

Model

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

2016 YEAR 2016 TO DATE Mkt share

Toyota

3,324

2,565

29.6

26.2%

30,664

24.8%

Nissan

Tiida

677

520

30.2

5.3%

6,029

4.9%

Nissan

2,355

1,940

21.4

18.5%

23,087

18.7%

Mazda

Axela

540

506

6.7

4.2%

5,521

4.5%

Mazda

1,943

1,867

4.1

15.3%

18,774

15.2%

Mazda

Demio

516

451

14.4

4.1%

4,546

3.7%

Honda

1,282

1,261

1.7

10.1%

12,917

10.5%

Suzuki

Swift

476

501

-5.0

3.7%

5,343

4.3%

Subaru

615

647

-4.9

4.8%

5,909

4.8%

Honda

Fit

431

458

-5.9

3.4%

4,429

3.6%

Suzuki

580

632

-8.2

4.6%

6,436

5.2%

Toyota

Wish

333

324

2.8

2.6%

3,099

2.5%

Bmw

502

459

9.4

3.9%

5,085

4.1%

Toyota

Vitz

318

169

88.2

2.5%

2,637

2.1%

Volkswagen

470

391

20.2

3.7%

4,781

3.9%

Subaru

Legacy

299

327

-8.6

2.4%

2,858

2.3%

Mitsubishi

465

394

18.0

3.7%

4,383

3.5%

Mitsubishi

Outlander

269

184

46.2

2.1%

2,319

1.9%

Mercedes-Benz

268

189

41.8

2.1%

2,412

2.0%

Volkswagen

Golf

268

249

7.6

2.1%

2,896

2.3%

Audi

219

200

9.5

1.7%

2,294

1.9%

Mazda

Atenza

264

290

-9.0

2.1%

2,521

2.0%

Ford

116

112

3.6

0.9%

1,308

1.1%

Toyota

Corolla

260

209

24.4

2.0%

2,223

1.8%

Volvo

90

79

13.9

0.7%

853

0.7%

Toyota

Prius

219

114

92.1

1.7%

1,865

1.5%

Lexus

59

55

7.3

0.5%

546

0.4%

Mazda

Mpv

208

252

-17.5

1.6%

2,176

1.8%

Holden

47

36

30.6

0.4%

420

0.3%

Mazda

Premacy

207

139

48.9

1.6%

1,822

1.5%

Porsche

40

8

400.0

0.3%

179

0.1%

Toyota

Mark X

201

116

73.3

1.6%

1,787

1.4%

Jaguar

35

30

16.7

0.3%

375

0.3%

Toyota

Estima

199

188

5.9

1.6%

1,520

1.2%

Chevrolet

33

34

-2.9

0.3%

431

0.3%

Honda

Odyssey

193

149

29.5

1.5%

1,665

1.3%

Hyundai

32

40

-20.0

0.3%

400

0.3%

Nissan

Dualis

177

116

52.6

1.4%

1,602

1.3%

Land Rover

32

25

28.0

0.3%

304

0.2%

Toyota

Auris

175

89

96.6

1.4%

1,715

1.4%

Mini

32

40

-20.0

0.3%

391

0.3%

Nissan

Note

163

145

12.4

1.3%

1,793

1.5%

Dodge

21

16

31.3

0.2%

207

0.2%

Nissan

Murano

144

144

0.0

1.1%

1,552

1.3%

Chrysler

16

5

220.0

0.1%

112

0.1%

Toyota

Blade

137

94

45.7

1.1%

1,401

1.1%

Bluebird

135

135

0.0

1.1%

1,209

1.0%

Jeep

16

15

6.7

0.1%

196

0.2%

Nissan

Daihatsu

14

23

-39.1

0.1%

122

0.1%

Subaru

Impreza

135

107

26.2

1.1%

1,174

0.9%

Peugeot

14

21

-33.3

0.1%

168

0.1%

Toyota

Rav4

119

85

40.0

0.9%

1,002

0.8%

Kia

8

9

-11.1

0.1%

77

0.1%

Honda

Cr-V

113

91

24.2

0.9%

1,267

1.0%

Maserati

7

5

40.0

0.1%

27

0.0%

Honda

Stream

110

121

-9.1

0.9%

1,206

1.0%

Cadillac

6

2

200.0

0.0%

37

0.0%

Bmw

320i

109

89

22.5

0.9%

1,057

0.9%

Fiat

5

5

0.0

0.0%

32

0.0%

Mazda

Verisa

102

91

12.1

0.8%

958

0.8%

Renault

5

4

25.0

0.0%

111

0.1%

Nissan

March

99

95

4.2

0.8%

1,026

0.8%

Buick

4

0

400.0

0.0%

18

0.0%

Nissan

Wingroad

99

96

3.1

0.8%

939

0.8%

Alfa Romeo

3

3

0.0

0.0%

31

0.0%

Honda

Airwave

97

57

70.2

0.8%

633

0.5%

Aston Martin

3

0

300.0

0.0%

23

0.0%

Toyota

Ractis

96

73

31.5

0.8%

858

0.7%

Teana

93

108

-13.9

0.7%

1,212

1.0%

37.2%

47,723

38.6%

100.0% 123,583

100.0%

Bentley

3

2

50.0

0.0%

24

0.0%

Nissan

Others

45

35

28.6

0.4%

449

0.4%

Others

4,728

4,267

10.8

12,709

11,149

14.0

100.0%

123,583

100.0%

Total

12,709

11,149

14.0

Total

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Used import sales stay strong S

ales of used imported cars have jumped, as customers find good value in popular models.

There were 12,709 imported used cars registered in October, a strong 14 per cent up on October 2015.

Year-to-date sales are at 123,583 units, up 3.6 per cent on the same time last year.

The region with the highest number of sales was up a healthy 15 per cent up on last year: Auckland, sold 6,335 imported used passenger vehicles last month, up from 5,496 in October 2015.

The Nissan Tiida continues to be the most popular used import but it can’t get its marque to overtake Toyota.

In October, there were 677 used imported Tiidas sold, a sizeable 30 per cent up on the same month last year. Year-to-date, 6,029 Tiidas have been registered, 4.9 per cent of total sales.

The next most popular used import is the Mazda Axela, with 540 sales last month, 6.7 per cent up on last year. Its year-to-date sales are at 5,521 units, 4.5 per cent of the market.

Third place for the month is taken by the Mazda Demio, with 516 sales, up a solid 14 per cent on 2015. Year-to-date, 4,546 have been sold for 3.7 per cent of the market.

Vern Walker, dealer principal of Nelson Bays Motor Group, says sales of used cars have been pretty strong.

“Here, the market seems reasonably confident at the moment, so there’s good inquiry and good steady sales.”

The most popular used imported cars sold at the dealership are the Nissan Dualis and Tiida, Walker says.

The Dualis, which is part of the popular SUV category, is liked by customers because it is easy to get in and out of, is nicelooking, has good visibility and is reliable, he says. Overall, Dualis sales increased 1.4 per cent on October 2015.

The Tiida is liked because it is low cost and great value for money, Walker says.

“It’s got a good reputation of being a good, reliable car,” he says.

Customers often come into the dealership asking for a Tiida, because they have seen them on the road and done their research online.

However, Walker says the Tiida also appeals to people who don’t know what they want but come into the yard with a set budget.

“With the Tiida, when they look at the specifications of the

Used Imported Passenger Registrations - 2014-2016 14000 13000 12000 11000 10000

2014

9000

2015 2016

8000 7000 6000

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

car; and the ease of drivability, visibility and value that’s there, a lot of people will swing to them,” he says.

Walker says sales of Nissans are also on a roll.

However, Toyota takes the cake as the top make for imported used cars. There were 3,324 units sold in October, 30 per cent up on 2015. Year-to-date, there have been 30,664 used imported Toyota cars sold, a 25 per cent market share.

Nissan is the second most popular marque with 2,355 sales last month, up a firm 21 per cent on last year. There have been 23,087 sold year-to-date, 19 per cent of sales.

Mazda takes third place for imported used cars with 1,943 sales, up 4.1 per cent on October 2015. Year-to-date, 18,774 units have sold, 15 per cent of the market.

Toyota is the best-selling make for Chris Martin Vehicle

Jan Feb Mar Apr May Jun

Jul Aug Sep

Oct Nov Dec

Importer – Wholesale, based in Christchurch.

Toyota Vitz, Corollas and Mazda Demios are the most popular cars sold, owner Chris Martin says.

He imports cars from Japan and sells them through Trade Me, with his covered yard accessible by appointment only.

However, Martin says he has had a dramatic decline in business over the last 18 months, with October continuing the trend.

He links the drop in interest to the import of lower-grade, cheap cars. In Christchurch, there has also been an increase in smaller dealers selling from their backyard and Turners has moved from car auctions into straight sales.

“At the end of the day, there are too many car dealers and not enough people buying cars,” Martin says.

“The low-grade stuff wasn’t coming into the country in any great quantity earlier on… now, of course, there’s a big industry in it.

“If you’re buying the highergrade vehicles with a nice colour and low kilometres, it’s very hard to compete, particularly when you’re selling online.”

Martin says his difficulty is getting people to call, as it is hard to tell high-quality vehicles over the internet.

“Once I get people here [in the yard] the success rate is very high because everything I have is high-grade. Once people see the cars, they see how nice they are.”

However, Martin says other dealers he knows in Christchurch have also been quiet in October.

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Used car import figures solid T

he number of used cars imported into New Zealand continues to stay strong on the back of high demand, according to provisional Customs figures.

There were 12,345 used cars imported into the country in October. This is down slightly by 0.29 per cent on the same month in 2015. However, year-to-date imports of used cars are strong at 127,377, up 2.9 per cent on the same time last year.

The figures are provisional, but in an email to Autofile, immediately before going to print, a spokesperson from Customs

‘Performance, Analysis and Reporting’ team said “We are looking at correcting the entry that distorted used car imports from South Africa [which was reported at 2,576] . It will be adjusted in next month’s report.

Most likely (as the broker has not confirmed yet) the total figure for October is eight.” The key country of origin for used cars continues to be Japan, with 11,286 Japanese used cars imported for the month. It was the country of origin for 91.42 per cent of used cars for the month.

Australian imports were also strong, with 575 used cars coming across the ditch in October, up a solid 28 per cent on September.

Australia took a 4.7 per cent market share for the month.

Great Britain was the third most popular country of origin for used cars, with 205 imports from there for the month. This was a dip of 7.2 per cent from Great Britain’s peak in September but it still managed a 1.7 per cent market share for the month.

Hamish Pike, owner of Allan Pike Cars in Napier, says sales are strong on the back of growing demand for SUVs. “Even some people who probably don’t really need an SUV-size vehicle, they are buying them because there’s a greater feeling of safety and ability to see

over traffic,” he says.

“It’s probably a little bit of flavour of the month.”

Pike says cars bought in Japan in October won’t arrive in New Zealand until mid-January, due to the busy time of year.

But he’s positive about the next few months and says stock numbers should work out.

“From our point-of-view, summer in the Hawke’s Bay is traditionally a pretty good place to be,” Pike says.

“Yes, I’m worried we will be out of stock in summer but it always seems to have a way of working itself out.”

Used imported passenger vehicle arrivals 18000 17000 16000 15000 14000 13000 12000 11000 10000 9000 8000

2015 2016 2014

7000 6000 5000 4000 3000

2013

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Imported Passenger Vehicles By Country Of Export Country of Export

2016

2014 2014 total Mkt Share

Mar ’16

Apr ’16

May ’16

Jun ’16

JuL ’16

Aug ’16

Sep ’16

316

445

472

398

395

408

372

438

450

575

4.7%

4,269

4,893

3.2%

3,167

65

39

62

65

73

72

75

94

221

205

1.7%

971

939

0.6%

1,885

1.4%

9,181

11,266

12,275

16,283

11,848

12,838

10,533

13,260

11,026

11,286

91.4%

119,796

143,125

94.9%

130,770

95.0%

Singapore

76

46

79

121

99

142

109

112

94

133

1.1%

1,011

611

0.4%

252

0.2%

Usa

89

79

83

66

103

118

112

125

113

114

0.9%

1,002

1,041

0.7%

1,278

0.9%

Other countries

21

12

28

27

45

52

48

25

38

32

0.3%

328

253

0.2%

286

0.2%

9,748

11,887

12,999

16,960

12,563

13,630

11,249

14,054

11,942

12,345

100.0%

127,377

150,862

100.0%

137,638

100.0%

Great Britain Japan

Total

2016 Total

2015

Feb ’16

Australia

Oct ’16 Oct Mkt Share

2015 TOTAL Mkt Share

JAN ’16

2.3%

Door-to-Door vehicle shipping experts To and from Japan, USa, UK, aUSTralia, Singapore, and The pacific Ph +64 9 303 0075 32 www.autofile.co.nz

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ContaCt us today!

October brings mixed fortunes D

ealer sales of secondhand vehicles suffered a slight dip in October.

Of used vehicles already in use on New Zealand roads, 17,829 cars were sold from dealers to the public in October, a fall of 1.3 per cent from the same month last year.

Sales from one member of the public to another picked up 2.6 per cent to 42,871 cars. Public-topublic sales now account for 59 per cent of the market, up from 57 per cent in September.

There were 12,455 cars bought by dealers from the public, a decrease of 1.1 per cent – showing good tradeins are still hard to come by.

Steve Rhodes, the owner of Feature Cars in Invercargill, says October was “a great month to forget”.

September was an unusually good month but the dealership suffered in October for it, he says.

Foot traffic, inquiries and sales were “almost non-existent” in the month. Other dealers in Invercargill have also said the same thing, Rhodes says.

The Southland region is reliant on the dairy industry, which is going through uncertain times.

While dairy prices may be on the up, Rhodes says it will still take a while for this to flow through into vehicle sales – as farmers will have

to pay off debt before they do anything else.

For a change, Invercargill’s weather is not to blame, with the area experiencing a warm spring, he says.

Rhodes explains Feature Cars has a niche market, selling “special” secondhand vehicles such as sports cars and “eye candy”.

The dealership has sold an unusual number of convertibles to Invercargill residents lately, which could have something to do with people being optimistic about the warm weather, he says.

Rhodes expects business to pick up soon, with Christmas traditionally

being a busy time of year.

In contrast with the bottom of the country, Free to Sell Northland had a record month for sales.

Despite being a small yard with about 80 vehicles and just two sales staff, the Whangarei company sold 50 vehicles in October, sales consultant Arthur McKechnie says.

He puts the success down to the team working hard, the business being open seven days and having a diverse stock.

The dealership has sold a wide variety of vehicles – everything from a ’62 Morris Minor and a ’72 Holden Torana to modern Hilux utes, McKechnie says.

Secondhand car sales - October 2016 Dealer-To-Public

Public-To-Public

Public-To-Dealer

Oct '16

Oct '15

+/- %

MarKET SHARE

Oct '16

Oct '15

+/- %

Oct '16

Oct '15

+/- %

562

560

0.4

3.15

1,885

1,840

2.4

251

216

16.2

Auckland

6,058

6,484

-6.6

33.98

15,087

14,750

2.3

4648

4,720

-1.5

Hamilton

1,406

1,469

-4.3

7.89

3,347

3,269

2.4

1113

1,152

-3.4 62.5

Whangarei

Thames Tauranga Rotorua

263

233

12.9

1.48

578

590

-2.0

130

80

1,021

995

2.6

5.73

2,223

2,045

8.7

589

592

-0.5

302

318

-5.0

1.69

948

834

13.7

111

97

14.4

Gisborne

179

160

11.9

1.00

360

384

-6.3

81

112

-27.7

Napier

603

550

9.6

3.38

1,487

1,350

10.1

422

380

11.1

New Plymouth

385

389

-1.0

2.16

937

954

-1.8

232

214

8.4

Wanganui

197

206

-4.4

1.10

575

527

9.1

99

149

-33.6

Palmerston North

734

716

2.5

4.12

1,634

1,635

-0.1

621

608

2.1

Masterton

184

154

19.5

1.03

406

395

2.8

97

90

7.8

Wellington

1,601

1,527

4.8

8.98

3,014

2,906

3.7

1135

1,131

0.4

Nelson

302

343

-12.0

1.69

954

915

4.3

192

235

-18.3

Blenheim

178

189

-5.8

1.00

407

416

-2.2

87

137

-36.5

Greymouth

70

88

-20.5

0.39

216

173

24.9

28

35

-20.0

Westport

9

26

-65.4

0.05

67

98

-31.6

0

0

0.0

2,471

2,302

7.3

13.86

5,106

5,170

-1.2

1775

1,755

1.1

Timaru

222

249

-10.8

1.25

493

522

-5.6

131

136

-3.7

Oamaru

62

59

5.1

0.35

161

164

-1.8

17

8

112.5

Christchurch

Dunedin

640

657

-2.6

3.59

2,004

1,878

6.7

455

439

3.6

Invercargill

380

388

-2.1

2.13

982

985

-0.3

241

308

-21.8

17,829

18,062

-1.3

100.00

42,871

41,800

2.6

12,455

12,594

-1.1

NZ total

Put yourself in the driver’s seat.

Take control of your dealership with MotorWeb.

Ph: 0800 668 679 www.motorweb.co.nz www.autofile.co.nz

33

new car sales New Passenger Vehicle Sales by Make - October 2016

New Passenger Vehicle Sales by Model - October 2016 Make

Model

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

16.5%

Toyota

Corolla

1,210

1,334

-9.3

11.2%

4,791

5.6%

8,443

10.0%

Toyota

Yaris

362

378

-4.2

3.4%

1,836

2.2%

8.4%

7,871

9.3%

Holden

Commodore

356

268

32.8

3.3%

2,191

2.6%

32.2

7.3%

6,431

7.6%

Holden

Cruze

303

113

168.1

2.8%

1,227

1.4%

366

54.9

5.3%

4,952

5.8%

Mazda

Cx-5

297

230

29.1

2.8%

2,429

2.9%

499

687

-27.4

4.6%

6,149

7.2%

Holden

Trax

297

65

356.9

2.8%

939

1.1%

Nissan

483

395

22.3

4.5%

4,517

5.3%

Toyota

Rav4

296

362

-18.2

2.7%

2,811

3.3%

Kia

458

265

72.8

4.2%

4,546

5.4%

Kia

Sportage

274

80

242.5

2.5%

2,605

3.1%

Suzuki

418

400

4.5

3.9%

4,471

5.3%

Mitsubishi

Outlander

271

121

124.0

2.5%

1,541

1.8%

Honda

387

284

36.3

3.6%

3,401

4.0%

Toyota

Camry

265

58

356.9

2.5%

1,155

1.4%

Volkswagen

386

253

52.6

3.6%

3,309

3.9%

Mazda

Mazda3

253

278

-9.0

2.3%

2,085

2.5%

Mercedes-Benz

253

178

42.1

2.3%

2,085

2.5%

Holden

Captiva

251

270

-7.0

2.3%

1,751

2.1%

SsangYong

249

226

10.2

2.3%

1,176

1.4%

Suzuki

Swift

205

209

-1.9

1.9%

2,154

2.5%

Subaru

208

191

8.9

1.9%

2,257

2.7%

Nissan

X-Trail

192

131

46.6

1.8%

1,570

1.9%

Bmw

158

185

-14.6

1.5%

1,555

1.8%

Hyundai

Santa Fe

179

150

19.3

1.7%

1,775

2.1%

Audi

148

121

22.3

1.4%

1,508

1.8%

Nissan

Qashqai

162

124

30.6

1.5%

1,516

1.8%

Jeep

147

161

-8.7

1.4%

1,120

1.3%

Ford

Mondeo

158

153

3.3

1.5%

985

1.2%

Skoda

116

92

26.1

1.1%

1,049

1.2%

Hyundai

Tucson

158

123

28.5

1.5%

2,059

2.4%

Land Rover

101

80

26.3

0.9%

1,009

1.2%

Volkswagen

Tiguan

157

58

170.7

1.5%

769

0.9%

Peugeot

74

79

-6.3

0.7%

660

0.8%

Toyota

Highlander

148

428

-65.4

1.4%

1,535

1.8%

Lexus

64

50

28.0

0.6%

590

0.7%

SsangYong

Korando

146

145

0.7

1.4%

492

0.6%

Mini

60

58

3.4

0.6%

504

0.6%

Honda

Hr-V

140

91

53.8

1.3%

1,107

1.3%

Dodge

58

40

45.0

0.5%

416

0.5%

Volkswagen

Golf

133

95

40.0

1.2%

1,131

1.3%

Volvo

52

41

26.8

0.5%

516

0.6%

Mitsubishi

Asx

132

44

200.0

1.2%

1,271

1.5%

Porsche

50

29

72.4

0.5%

416

0.5%

Ford

Kuga

130

90

44.4

1.2%

1,081

1.3%

Renault

43

14

207.1

0.4%

165

0.2%

Mazda

Mazda2

120

98

22.4

1.1%

1,186

1.4%

Jaguar

35

9

288.9

0.3%

324

0.4%

Ford

Focus

119

106

12.3

1.1%

1,198

1.4%

Citroen

29

20

45.0

0.3%

224

0.3%

Mazda

Cx-3

118

107

10.3

1.1%

1,256

1.5%

Mahindra

23

0

2300.0

0.2%

67

0.1%

Honda

Jazz

115

135

-14.8

1.1%

1,377

1.6%

Isuzu

19

18

5.6

0.2%

217

0.3%

Holden

Barina

112

143

-21.7

1.0%

905

1.1%

Fiat

11

97

-88.7

0.1%

258

0.3%

Ford

Mustang

103

0

10300.0

1.0%

895

1.1%

Ldv

8

0

8900.0

0.1%

42

0.0%

Jeep

Grand Cherokee

100

83

20.5

0.9%

538

0.6%

Alfa Romeo

6

10

-40.0

0.1%

102

0.1%

Mazda

Mazda6

90

165

-45.5

0.8%

751

0.9%

Can-Am

4

4

0.0

0.0%

52

0.1%

Suzuki

Vitara

90

0

9000.0

0.8%

1,277

1.5%

Tesla

4

1

300.0

0.0%

23

0.0%

Ford

Ecosport

87

62

40.3

0.8%

302

0.4%

Others

22

46

-52.2

0.2%

435

0.5%

Others

3,266

3,337

-2.1

30.3%

32,362

38.1%

10,795

9,634

12.1

100.0%

84,853

100.0%

Total

10,795

9,634

12.1 100.0%

84,853

100.0%

Make

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

2016 YEAR TO DATE

2016 Mkt share

Toyota

2,468

2,741

-10.0

22.9%

13,993

Holden

1,490

992

50.2

13.8%

Mazda

912

907

0.6

Ford

785

594

Mitsubishi

567

Hyundai

Total

34 www.autofile.co.nz

2016 YEAR 2016 TO DATE Mkt share

new vehicles

Sales of new vehicles hit record O

ctober has smashed all previous records for the highest number of new vehicles registered in New Zealand.

There were 14,709 new vehicles registered in October: 10,795 passenger cars and SUV vehicles, and 3,914 commercial vehicles.

This breaks a record set 32 years ago, says John Manley, Motor Industry Association president.

“Not only is it the highest October registrations of any October, it is also the highest ever of any month on record, shattering the previous highest month, way back in July 1984 where 13,983 units were registered.

“It is also the first time that more than 14,000 new vehicles were registered in a month.”

The high sales are a barometer of business and consumer confidence, Manley says.

For more on the new commercial vehicle sales, see page 36.

Passenger and SUV vehicle sales are 12 per cent up on October last year. Year-to-date sales are at 84,853 units, 6.2 per cent up on the same time in 2015.

The Toyota Corolla remains the most popular new car, despite October sales being down 9.3 per cent on a year ago. There were 1,210 Corollas sold in the month, an 11.2 per cent market share.

While the Toyota Yaris stands in the shadow of its ‘big brother’ Corolla, it was the next most popular car with 362 units sold, a decrease of 4.2 per cent. It takes 3.4 per cent of monthly sales.

The Holden Commodore was

the third most popular new car in October, with 356 units sold – up a healthy 32.8 per cent on last year – a 3.3 per cent market share.

The Commodore takes a big percentage of the large sedan market because it has a good reputation, according to Walter van den Engel, co-owner of Ebbett – Hamilton.

“It’s a very good car. You can fit three adults comfortably in the back seat, it has good fuel economy, lots of options and it’s well-produced,” he says.

“For the people who want a large sedan, the Commodore has that market.”

Ebbett – Hamilton has also been selling a lot of Holden Captivas because of their “very strong price point” from $35,990, van den Engel says.

“It’s an SUV in the mid-30s with a lot of specs,” he says. “It’s got seven seats, with leather and a sunroof.”

Van den Engel says overall new car sales have been going well both in the last month and all this year.

“At the moment the economy is going reasonably well.

Toyota Corolla still leader of the new car pack

New Passenger Registrations - 2014-2016 11000 2014

10500

2015

10000

2016

9500 9000 8500 8000 7500 7000 6500 6000

Jan Feb Mar Apr May Jun

Jul Aug Sep

Oct Nov Dec

FINDING IT HARD GETTING A

MESSAGE

We’ve got quite strong immigration and population growth,” he says.

“Cars have probably never been better value for money.

If you look at the pricing, it’s incredible. The cars keep getting higher spec and they keep getting better, and prices haven’t really gone up.”

But while overall Holden sales have been strong this month, the marque was unable to catch up to the market leader: Toyota.

There were 2,468 Toyota cars sold last month, down 10 per cent on last year. However, it makes up 22.9 per cent of monthly sales.

There were 1,490 Holdens sold in October, a huge 50.2 per cent up on 2015 and 13.8 per cent of monthly sales.

Mazda is the third most popular marque for new cars, with 912 units sold, a moderate 0.6 per cent up on October 2015. It takes 8.4 per cent of the market.

The most popular type of vehicle sold during the month was the SUV. There were 4,782 SUVs sold, 44 per cent of the passenger car market for the month.

The next most popular type of vehicle is the hatchback, with 3,392 hatchbacks sold across all sizes, although the “light” and “small” ranges are the most popular. This makes up 31 per cent of sales for the month.

On the other end of the scale, there have been 199 new sports cars or convertibles sold in October, with this luxury end of the market taking just 1.8 per cent of sales.

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e: brian@autofile.co.nz www.autofile.co.nz 35

new commercial sales

New-look commercials win buyers S

ales of new commercial vehicles are up an impressive 28 per cent on the same month last year, as customers take to new-look vehicles.

There were 3,914 new commercials registered in October. Year-to-date sales are at 37,118 – 14 per cent higher than the same time in 2015.

Kiwis’ appetite for the Ford Ranger continues to grow and the ute’s market share increases monthly. There were 768 units sold last month, a considerable 38 per cent up on 2015. The Ranger took 19.6 per cent of October sales.

There was also a strong lift in interest in the Toyota Hilux, the next most-popular new commercial. There were 512 sales in October, a sizeable 41 per cent up on last year. It had a 13.1 per cent market share for the month.

The Holden Colorado continues as the third most attractive new commercial. There were 346 units sold in October, 17 per cent higher than a year ago. It took 8.8 per cent of monthly sales.

The new Colorado is selling better than expected, with customers liking the American

New Commercial Sales - 2014-2016

4750

2016

4500 4250

2015

4000

2014

3750 3500 3250 3000 2750 2500 2250 2000 Jan

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

monthly sales by a massive 214.8 per cent on last year. With 85 sales in the month, it sits 12th on the leader board, with 2.2 per cent of monthly sales.

LDV sister company SsangYong increased October sales by 94.7 percent to claim 13th place; LDV is the “biggest success story” for a car company in New Zealand for just three years, says Warren Willmot, national sales and marketing manager.

Customers are looking for value and the LDV G10 van offers that, with a low price point and plenty of extras, he says.

The G10 comes with the option of a six-speed automatic transmission and can be fitted out to the customer’s requirements within 72 hours, Willmot says.

The marque is getting a name for reliability, he says, while the costs of servicing and parts are kept low.

LDV sales are expected to boost even more next year, with the introduction of electric vans, a full range of utes and a large SUV, Willmot says.

New Commercial Sales by Model - October 2016

New Commercial Sales by Make - October 2016 Make

truck look and its technology offering, says Walter van den Engel of Ebbett – Hamilton.

“It makes it easier to sell a car when someone driving the previous model jumps in a new one and it’s so much better,” he says.

However, when it comes to the race for the top new commercial make, Holden is unable to catch up to Ford and Toyota.

Ford continues to edge ahead – thanks to its popular Ranger – with 839 sales in October, 33.6 per cent up on last year. It took 21.4 per cent of monthly sales.

There were 819 new commercial Toyotas sold in October, a robust 40.5 per cent increase on 2015, for 20.9 per cent of monthly sales.

Holden lags in third place with 376 sales for the month, 20.1 per cent up on last year, and a 9.6 per cent market share.

October has also seen an increase in sales from some emerging marques.

LDV, originally part of British Motor Corporation but now Chinese-owned, has increased

2016 YEAR TO DATE

2016 Mkt share

Make

Model

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

2016 YEAR TO DATE

2016 Mkt share

Ford

839

628

33.6

21.4%

7,896

21.3%

Ford

Ranger

768

558

37.6

19.6%

7,177

19.3%

Toyota

819

583

40.5

20.9%

7,608

20.5%

Toyota

Hilux

512

364

40.7

13.1%

5,302

14.3%

Holden

376

313

20.1

9.6%

3,310

8.9%

Holden

Colorado

346

296

16.9

8.8%

3,116

8.4%

Nissan

298

210

41.9

7.6%

2,618

7.1%

Nissan

Navara

298

210

41.9

7.6%

2,618

7.1%

Isuzu

288

196

46.9

7.4%

2,993

8.1%

Toyota

Hiace

297

207

43.5

7.6%

2,211

6.0%

Mitsubishi

197

245

-19.6

5.0%

2,672

7.2%

Mitsubishi

Triton

197

245

-19.6

5.0%

2,669

7.2%

Mazda

155

121

28.1

4.0%

1,548

4.2%

Isuzu

D-Max

187

124

50.8

4.8%

1,994

5.4%

Mercedes-Benz

114

107

6.5

2.9%

744

2.0%

Mazda

Bt-50

155

121

28.1

4.0%

1,548

4.2%

Hyundai

93

48

93.8

2.4%

831

2.2%

Mercedes-Benz Sprinter

Volkswagen

92

63

46.0

2.4%

1,032

2.8%

Hyundai

iload

107

92

16.3

2.7%

632

1.7%

88

46

91.3

2.2%

792

2.1%

Fiat

89

98

-9.2

2.3%

686

1.8%

Fiat

Ducato

85

88

-3.4

2.2%

661

1.8%

Ldv

85

27

214.8

2.2%

746

2.0%

SsangYong

Actyon Sport

74

38

94.7

1.9%

765

2.1%

SsangYong

74

38

94.7

1.9%

765

2.1%

Ford

Transit

71

65

9.2

1.8%

668

1.8%

Foton

61

42

45.2

1.6%

491

1.3%

Volkswagen

Amarok

59

35

68.6

1.5%

570

1.5%

Hino

61

57

7.0

1.6%

574

1.5%

Foton

Tunland

56

34

64.7

1.4%

412

1.1%

Mitsubishi Fuso

39

54

-27.8

1.0%

440

1.2%

Ldv

V80

50

17

194.1

1.3%

445

1.2%

Volvo

37

16

131.3

0.9%

223

0.6%

Isuzu

F Series

46

32

43.8

1.2%

378

1.0%

Scania

36

12

200.0

0.9%

164

0.4%

Isuzu

N Series

43

29

48.3

1.1%

453

1.2%

Man

34

11

209.1

0.9%

204

0.5%

Hino

500

35

24

45.8

0.9%

312

0.8%

Renault

22

7

214.3

0.6%

116

0.3%

Ldv

G10

35

10

250.0

0.9%

299

0.8%

105

176

-40.3

2.7%

1,457

3.9%

Others

3,914

3,052

28.2

100.0%

37,118

100.0%

Others Total

36 www.autofile.co.nz

Total

405

417

-2.9

10.3%

4,096

11.0%

3,914

3,052

28.2

100.0%

37,118

100.0%

used commercial sales

Multipurpose use drives sales S

ales of used commercial vehicles continue to soar, with October sales up a massive 32.3 per cent on last year.

There were 974 used commercials sold last month, up from 736 in October 2015. Yearto-date sales are now at 8,777 vehicles, up an impressive 20 per cent on the same time last year.

The versatile Toyota Hiace continues its reign as the most popular used commercial vehicle.

There were 307 Hiaces sold last month, up 24.3 per cent on last year: a considerable 31.5 per cent of the market. Year-to-date, there have been 3,093 Toyota Hiaces sold, an unsurpassable 35.2 per cent market share.

The next most popular used commercial is the Nissan Vanette with 77 sales in October – a whopping 208 per cent increase on the same month last year. It took a 7.9 per cent stake in sales for the month.

Third spot was shared by two other vans: the Mazda Bongo and Nissan Caravan. In a strange coincidence, they both had the

same number of sales in October this year and last year. Both had 66 sales, up 29.4 per cent on 2015, for 6.8 per cent of the market.

Toyota maintains its spot as the most popular marque for used commercial sales, securing nearly half of the total sales for the year. There were 428 sold in October, up 13 per cent on last year. Year-to-date sales are at 4,127, an unrivalled 47 per cent of the market.

Nissan continues in second place, with 225 sales for the month. The large jump in Vanette sales helped the marque to a sizeable 81.5 per cent increase on October last year. Year-to-date, there have been 1,970 sold, 22.4 per cent of sales.

Mazda lingers in third place, with 82 used commercials sold in October, up 43.9 per cent on last year. Year-to-date, 602 Mazdas have been sold, a 6.9 per cent market share.

Areas that have been experiencing a building boom are doing well with commercial sales.

Nelson Bays Motor Group has

Used Commercial Sales by Make - October 2016 Make

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

experienced strong sales in its commercial range of Holdens and Nissans. “It’s all on the back of the tradies,” says dealer principal Vern Walker.

Building-related trades have enough work ahead that they know they can invest in their vehicles.

“They’re finding they’re pretty busy on the back of all the building that is going on and obviously, they’ve got the confidence going forward,” Walker remarks.

Allan Pike Cars in Napier is also selling a lot of light commercial utes, along with SUVs, which come under the passenger vehicle class.

Used Commercial Sales - 2014-2016

1100 1050 1000 950 900 850 800 750 700 650 600 550 500 Jan

“They are very, very popular,” says owner, Hamish Pike.

“Utes have always been popular and that hasn’t changed much over time. They’re popular, particularly in the regions, because of their multiple applications.”

Meanwhile, strong tourism growth could account for the keen interest in campervans.

Information from Statistics New Zealand shows the number of short-term international visitors increased 10 per cent in the year to March 2016.

Total tourism spending increased 12 per cent to $34.7 billion.

2016 2015 2014

Feb

Mar

Apr

May Jun

Jul

Aug

Sep

Oct

Nov

Dec

Used Commercial Sales by Model - October 2016

2016 YEAR TO DATE

2016 Mkt share

Make

Model

Oct '16

Oct '15

+/- %

Oct '16 Mkt Share

2016 YEAR TO DATE

2016 Mkt share

35.2%

Toyota

428

378

13.2

43.9%

4,127

47.0%

Toyota

Hiace

307

247

24.3

31.5%

3,093

Nissan

225

124

81.5

23.1%

1,970

22.4%

Nissan

Vanette

77

25

208.0

7.9%

396

4.5%

Mazda

82

57

43.9

8.4%

602

6.9%

Mazda

Bongo

66

51

29.4

6.8%

477

5.4%

Isuzu

61

21

190.5

6.3%

449

5.1%

Nissan

Caravan

66

51

29.4

6.8%

780

8.9%

Ford

40

17

135.3

4.1%

302

3.4%

Toyota

Regius

45

32

40.6

4.6%

295

3.4%

Holden

25

11

127.3

2.6%

173

2.0%

Isuzu

Elf

34

13

161.5

3.5%

282

3.2%

Mitsubishi

23

31

-25.8

2.4%

305

3.5%

Nissan

Nv200

29

20

45.0

3.0%

312

3.6%

Chevrolet

16

16

0.0

1.6%

154

1.8%

Nissan

Atlas

24

12

100.0

2.5%

179

2.0%

Fiat

13

21

-38.1

1.3%

64

0.7%

Ford

Ranger

22

7

214.3

2.3%

131

1.5%

Hino

13

11

18.2

1.3%

174

2.0%

Toyota

Hilux

18

20

-10.0

1.8%

134

1.5%

6

3

100.0

0.6%

39

0.4%

Toyota

Toyoace

18

25

-28.0

1.8%

175

2.0%

Suzuki Dodge

5

2

150.0

0.5%

51

0.6%

Toyota

Dyna

17

24

-29.2

1.7%

288

3.3%

Kenworth

5

1

400.0

0.5%

19

0.2%

Isuzu

Forward

14

7

100.0

1.4%

99

1.1%

Mercedes-Benz

5

1

400.0

0.5%

29

0.3%

Mitsubishi

Canter

13

15

-13.3

1.3%

117

1.3%

Volkswagen

5

9

-44.4

0.5%

63

0.7%

Fiat

Ducato

12

20

-40.0

1.2%

61

0.7%

11

8

37.5

1.1%

130

1.5%

8

3

166.7

0.8%

74

0.8%

Great Wall

3

0

300.0

0.3%

18

0.2%

Nissan

Navara

Iveco

3

2

50.0

0.3%

14

0.2%

Holden

Colorado

Daihatsu

2

3

-33.3

0.2%

7

0.1%

Toyota

Estima

8

20

-60.0

0.8%

21

0.2%

Gmc

2

2

0.0

0.2%

30

0.3%

Nissan

Nv350

8

0

800.0

0.8%

60

0.7%

Titan

2

2

0.0

0.2%

8

0.1%

Mazda

8

5

60.0

0.8%

81

0.9%

Others

10

24

-58.3

1.0%

179

2.0%

Others

169

131

29.0

17.4%

1,592

18.1%

Total

974

736

32.3

100.0%

8,777

100.0%

Total

974

736

32.3

100.0%

8,777

100.0%

Man

www.autofile.co.nz

37

Specific requests difficult to meet A

Pacific Motor Group in Whangarei say their new Ford stock is selling well

sales at the same time last year.

Chris Windust, Ford sales manager for Pacific Motor Group in Whangarei, says new car sales have been going very well.

The dealership has been selling a lot of Ford Focus cars and Everest SUVs, he says. It has also sold a lot of Ranger utes and Transit vans, which are categorised as light commercials.

Standard stock is available in most colours but, as dealers tend to order what sells, the more unusual stock can be hard to get hold of.

This includes vehicles with the less-

popular manual transmissions, which can be hard to source.

“We have good volume of all the popular stuff,” Windust says While Ford Falcons will no longer be available, due to Ford shutting its Australian manufacturing plants, the loss of the Falcon will not make a big dent in sales.

“I’ve had six or seven new Falcons over the years – I love them. It’s an iconic Kiwi vehicle but, the reality is, when I’ve had them here in the showroom, I’ve had an almost endless stream of

Dealer stock of new cars in New Zealand 55,116

- 12-MONTH AVERAGE

Days stock at hand

220

260

212

200

Nov ‘15

8,753

8,115

638

55,754

260

215

Dec ‘15

8,981

7,110

1,871

57,625

261

221

Jan ‘16

6,647

8,899

-2,252

55,373

260

213

Feb ‘16

7,029

7,191

-162

55,211

261

212

Mar ‘16

7,561

8,191

-630

54,581

261

209

Apr ‘16

8,816

6,790

2,026

56,607

262

216

May ‘16

8,184

7,502

682

57,289

264

217

Jun ‘16

8,924

9,186

-262

57,027

264

216

Jul ‘16

9,279

7,701

1,578

58,605

265

221

Aug ‘16

13,081

8,894

4,187

62,792

269

234

Sep ‘16

10,291

9,704

587

63,379

271

234

Oct ‘16

10,132

10,795

-663

62,716

274

229

Year to date

89,944

84,853

5,091

Change on Oct 2015

17.6%

12.1%

marac.co.nz

Oct 2014 — Oct 2015

160 140 120 100 80 60

Drive away with finance from MARAC Provided by Heartland Bank Limited

MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply.

38 www.autofile.co.nz

heartland.co.nz

Oct

Aug

Jul

Jun

Sept

MORE STOCK

Apr

40

13.8%

MAy

More SOLD

180

Mar

More IMPORTED

Oct 2015 — Oct 2016

Feb

-1,015

DAILY SALES

Dec

9,634

Stock

Nov

8,619

Oct ‘15

Variance

Oct

Registered

Days of stock

CAR Sales Imported

guys coming in and loving them, but very few wanted to buy one,” he says.

“I think the days of the big V6 and V8 four-door passenger car – regardless of brand – that vehicle type is not really in demand much anymore – people are all going for double-cab utes and SUVs. “Those big old things are, in many ways, a dinosaur.”

Windust says Ford has excellent options for former Falcon drivers, with the new Mondeo being “10 times the vehicle that the Falcon was” both in terms of performance and specifications.

For V8 fanatics, Ford offers the right-hand-drive Mustang, he says.

“For the V8 customers, we have the best we’ve ever had. We’re pretty well covered.”

Windust says he has sold more Australian-built Territory SUVs than Falcons, but the marque has a wide range of SUVs to cover any gap.

Days stock in NZ - new Cars

JAN

s new-car stock is based on the most popular options, dealers say some unusual requests can be hard to accommodate within existing stock levels.

Stock levels of new cars have fallen, thanks to record sales in October.

There were 10,132 new cars imported and 10,795 sold during the month, leaving a deficit of 663 cars.

Stock levels are at 62,716 units, which is 14 per cent up on October last year.

Year-to-date, there have been 89,944 new cars imported and 84,853 sold, leaving 5,091 still waiting to be sold.

Stock is now on hand for 229 days, eight per cent longer than in 2015 but down from the record 234 days in August and September.

There are 274 new cars sold each day, when averaged over 12 months, compared to 260 daily

Stock levels hard to balance

K

een interest in used imports means merchandise is driving out the door and the mood is positive, despite stock levels still being well up on last year.

There were 12,345 used cars imported in October and 12,709 first registered, resulting in stock of unregistered units reducing by 364 units for the month.

The stock level of used imported cars is now at 29,376, a sizeable 28 per cent up on October 2015, when it was sitting at 22,894.

Stock is staying on hand for 72 days on average, which is 24 per cent longer than the same time a year ago.

However, 405 cars are selling each day when averaged over the last 12 months, up 3.1 per cent on October 2015.

Hamish Pike, owner of Allan Pike Cars in Napier, admits it is hard to get stock levels just right.

October was the “best month

of the financial year so far” for the dealership, which he puts down to a general up-turn in the economy and having the right stock.

“I think things are looking pretty positive everywhere. I think if the government can announce a surplus, which it did, that helps because the country doesn’t think

“That has quite a big effect: I’m struggling to replace that stock.”

Pike has bought more stock from Japan but knows, because it is so busy at this time of year, there will be a three-month delay for this stock to arrive.

He supplements his imported stock by buying existing used

“It’s a balancing act. We’re trying to have enough stock so that momentum stays good, but not be overstocked or understocked.”– Hamish Pike, Allan Pike Cars it’s going backwards,” Pike says.

However, all of these sales have led to a lack of stock in the lead-up to the busy summer period.

“Between units out and back in through trade-ins and the like, we have a net deficit of about 10 and we’re only a 25 unit [a month] operation,” he says.

vehicles from around the country.

Pike says smaller operations such as his don’t have the same luxury of larger operators, who can store a large number of vehicles both on-site and off-site.

“We try to replace them one for one,” he says. “It’s a balancing act. We’re trying to have enough

Dealer stock of used cars in New Zealand

Days stock in NZ - Used Imported Cars

CAR Sales

180

Imported

Oct ‘15

160 140

100 Oct 2015 — Oct 2016

60 40 Oct 2014 — Oct 2015

20

Oct

Sept

Aug

Jul

Jun

MAy

Apr

Mar

Feb

JAN

Dec

Nov

marac.co.nz

12,381

Registered

11,149

Variance

1,232

Stock

22,894

DAILY SALES - 12-MONTH AVERAGE

Days stock at hand

393

58

Nov ‘15

12,379

11,732

647

23,541

393

60

Dec ‘15

14,620

12,598

2,022

25,563

394

65

Jan ‘16

9,748

11,675

-1,927

23,636

393

60

Feb ‘16

11,887

11,736

151

23,787

396

60

Mar ‘16

12,999

12,153

846

24,633

396

62

Apr ‘16

16,960

12,140

4,820

29,453

399

74

May ‘16

12,563

12,567

-4

29,449

399

74

Jun ‘16

13,630

11,991

1,639

31,088

398

78

Jul ‘16

11,268

13,055

-1,787

29,301

396

74

Aug ‘16

14,054

12,993

1,061

30,362

399

76

Sep ‘16

11,942

12,564

-622

29,740

401

74

Oct ‘16

12,345

12,709

-364

29,376

405

72

127,396

123,583

3,813

Year to date

0

Oct

Days of stock

120

80

stock so that momentum stays good, but not be overstocked or understocked.”

Being understocked can make it hard to give customers what they want and can look like you’re going out of business, Pike says.

However, being overstocked can lead to issues with cash flow if a quiet month follows.

Pike says he generally refuses to sell cars with such a big discount that it results in no profit, even if he has a quiet month and has a lot of stock on hand.

“I’d rather have a quiet month than a month where I’m giving everything away,” he says.

“It doesn’t make any sense to me because you can only sell a car once.

“The public believes car dealers are crooked and make too much money but our operation costs a lot to run.

“That’s the reality and everyone in business is entitled to make a profit.”

Change on Oct 2015

-0.3% Less IMPORTED

Drive away with finance from MARAC Provided by Heartland Bank Limited

14.0% More SOLD

28.3% MORE STOCK

heartland.co.nz

MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply.

www.autofile.co.nz

39

GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE

SERIOUS about AUS to NZ Australia to New Zealand Have you considered it?

• Increased interest in stock from Australia • Huge potential to buy quality cars • Stock that works in this market • Established supply channel • Stock can be delivered within a week • Full package services in place

To find out more about this growing market, contact Danny Knight on 0274 443 433 or 09 412 2765 or email danny@autohub.co.nz www.autohub.co

+64 9 411 7425

info@autohub.co