Radiator
September 2013
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Keeping members informed for over 90 years
contents
26
September 2013 6
President's Comment Partial sale of VTNZ makes sense
Regulars 25 Murph's Column 30-31 Mediation Matters 32-33 MTA Advocate 36-39 Bodywork - Collision Repair News 44-47 Statistics 52 MTA Express 53 H.R. Advice 54-55 Industry Training 64-66 Service Station News 67 Member Benefits 68 Environmental News 74 Better Business
Road Test
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2014 7
NZ Radiator Magazine ISSN 1179-7800. Managing Editor: Ian Stronach Production Editor: Peter Woodcock Phone 04-381 8805, Email: peter.woodcock@mta.org.nz
The Rise and Rise of China
14
40
Advertising Representative: Cathy La Ville Phone: 09 413 8577 - Mobile: 022 531 1638 Email: cathy.laville@mta.org.nz Published/produced by Motor Trade Association for MTA Members. PO Box 9244, Level 2, 79 Taranaki Street, Wellington. Phone 04-385 8859, Fax 04-385 9517, mta@mta.org.nz, www.mta.org.nz. Printed by Astra Print, a Kalamazoo Group Company The Motor Trade Association (Inc) is not responsible for statements, opinions or factual matters published in the NZ Radiator magazine, nor do they necessarily reflect the views of the MTA, its Board of Directors or its advisory/specialty committees, unless expressly so stated and does not endorse advertisers. NZ Radiator magazine is available free to all members of the Motor Trade Association. Information on products and services contained in the editorial and advertising pages of this magazine is published as a service and no responsibility will be taken for inaccurate information. NZ Radiator magazine does not imply the endorsement of any product or service. The publisher reserves the right to refuse advertising and editorial at any stage. Copyright: No part of the NZ Radiator magazine may be reproduced in part or in whole without the written permission of the publisher.
14-17 The Rise and Rise of China - Alistair Hill 20
- Ford Transit Custom
Wellington Office Contacts
Transmissions - Martin Brooks
22-24 A miracle is slowly unfolding - Jake Ventor
Phone 04-385 8859
Fax 04-385 9517
26-27 Road Test - Ford Transit Custom
Mediation Line
0508 682 633
Stationery Department
0508 682 682
34-35 Industry Comment - Carl O'Shea
Debtor Info
0800 734 335
40-41 Are cars collectible? - David Linklater
Signature Security
0800 682 744
Eftpos
0800 338 767
Southern Cross Healthcare
0800 100777
48-49 Member Profile - Armstrong Sports 62-63 Diagnostics - Herbert Leijen 70-71 Road Test - Gratifying Gixxer
Industry Comment Carl O'Shea
34
Cardlink (Drivecard Fleetcard Enquiries) 0800 663 866 Product Services Manager
Danny Garrick
Group Accountant
Lionel Wong
MEMBER FREEPHONE 0800 00 11 44 www.mta.org.nz 5•
radiator September 2013
comment David Storey
MTA President
Partial sale of VTNZ makes good sense
As you will be aware, MTA Group Investments Ltd (MGIL) proposes to sell 60 percent of its shareholding in Vehicle Testing New Zealand (VTNZ) to DEKRA, an international inspection company. This is both a strategic and risk-sharing based decision for MGIL. I’d like to explain the basis for this decision Early last year, the MGIL Board made the decision to review its financial investment strategy. All organisations do this from time to time to ensure that they are investing their capital and resources in the appropriate areas, and that they are comfortable with the risk profile associated with the various investments. As always, there needs to be a balance between risk and return, so that funds are as well protected as they can be. Over the years MTA has managed to accumulate sufficient funds to make two significant investments via its investment company MGIL; the MTA office building in Wellington and VTNZ. These investments have been
efi@petroject.co.nz • Tel: 09 448 1071• www.petroject.co.nz
successful and have enabled MGIL to make regular and significant dividend payments to MTA. It’s important that we protect this for the future as well as we can. In this review however, MGIL identified that all its investments were locked up in just these two investments. This meant that they were quite exposed from a risk perspective. Sudden changes outside of their control could mean that either or both might fail to perform as they had in the past. Much as anyone would like to be able to, it’s just not possible to predict the future. Put simply, all their eggs were in one basket, and they needed to revise their strategy to avoid any significant problems. To make sure that MGIL had a more appropriate and better protected investment strategy they put together what is called a SIPO - Statement of Investment Policy and Objectives. This SIPO was approved by the MTA Board. This is quite a grand name, but it is really just a plan and guide for making sure that MGIL’s investments are more balanced across a greater range than just commercial property and an automotive inspection and testing company. The MGIL Board and key MTA staff have been working to put MGIL’s SIPO into
Put simply, all our eggs were in one basket, and we needed to revise our strategy to avoid any significant problems.
effect for the last 18 months now, and the opportunity around VTNZ plays a key part in that. Partnering with DEKRA makes a lot of sense. It is one of the world’s leading expert organisations. The company is based in Stuttgart, Germany and has around 28,000 employees worldwide. In 2012 DEKRA generated revenues of around €2.2 billion. The DEKRA Business Units “Automotive”, “Industrial” and “Personnel” provide professional and innovative
services in the fields of vehicle testing, expert appraisals, international claims settlement, consulting, industrial testing, product testing, certification, environmental protection, qualification as well as temporary work. The Business Unit DEKRA Automotive is one of the world’s largest vehicle inspection providers, carrying out more than 23 million vehicle inspections a year. DEKRA’s huge array of expertise and capability will not only allow VTNZ to grow in the future, but it also opens up potential opportunities for further cooperation between them and MTA. There are huge possibilities in the future, and I am excited about that. Importantly though, for all of the activities that they do carry out there are those that they don’t: DEKRA do not provide a vehicle servicing offer - they test vehicles but don’t repair them. Under this agreement, they will not be introducing any service offering either while the agreement is in force. DEKRA doesn’t currently operate in this part of the world, and is keen to do so. From their perspective, a shareholding
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radiator September 2013
in VTNZ makes sense; it would make use of their expertise and at the same time would be a stepping off point to the wider Australasian market.
Annual General Meeting
The MTA Board considers that the agreement MGIL has with DEKRA represents a good outcome for members and the MTA Group. It will allow MGIL to add capability to VTNZ that will enable it to flourish in the future. It will also allow MGIL to free up resources so that they can broaden their investment portfolio for the longer term benefit of members. I know that members will have many questions about this agreement, and of course, any final decision is dependent on member support at the Special General Meeting set down for 11.00am on Friday, 20 September 2013 in Wellington.
Notice is hereby given to members of the 96th Annual General Meeting of the Motor Trade Association (Inc) to be held in the BNT Two, Copthorne Hotel and Resort Bay of Islands, Tau Henare Drive, Paihia, Bay of Islands on Friday, 18 October 2013 commencing at 10.45-11.00am. The business will be (in no particular order):
• Attendance and apologies • Welcome and messages of greeting • Confirmation of the Minutes of the 2012 Annual
In the meantime MTA will be providing a range of resources to make sure members are as well informed as possible before making their decision. We have arranged 14 roadshows at venues across the country where members will be able to hear from and ask questions of members of the Board as well as MTA senior management. There is a video presentation available on the members' side of the MTA website (www.mta.org.nz), as well as a Q&A section, plus a Closed Group Facebook page where members can discuss the various issues. I believe we have created a good communications network around this issue and that members will be able to find the answer to any questions they might have.
General Meeting
• Matters arising • Annual and financial reports • Announcement of 2013/14 President, Vice President, and two Directors and MTA Category Committees elected by electronic/postal election
• Appointment of Auditor • Appointment of four members to the MTA Appeals Authority
• General business • Close
I am confident that members will support the decision to sell 60 percent of VTNZ, and that the rationale is best for VTNZ and the MTA Group in the long term. As your President, I need to assure members that your Board, its subsidiaries and organisation are making the right strategic decisions to ensure that we can meet the future needs of the organisation and its members.
Stephen Matthews Chief Executive Officer
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MTA’s Vehicle Service Book new look, revised content,
A new version of the Vehicle Service Book is now available though the stationery portal on the MTA website. A lot has changed in the eight years since the original booklet was designed. The fully-revised A5 booklet has updated details of major and minor services, better reflecting the requirements of the current fleet. The Accident Report Information section has been re-worked to provide additional space for key information, while a completely new section on basic vehicle care is included at the back of the booklet, to address changes brought about through Vehicle Licensing Reform. With a new cover, it will be easy to tell the current version from the old one. The Part no remains 134a, and the booklets can be ordered in packs of 10 for just $9 plus GST – a 10 percent reduction over the previous edition!
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radiator September 2013
Notice of MTA Special General Meeting Regarding MTA Group Investments Ltd’s (MGIL) partial sale of Vehicle Testing Group Limited (VTG) Notice is hereby given that a Special General Meeting of the members of Motor Trade Association Incorporated (MTA) is to be held at the Rydges Wellington, Grand Space, 75 Featherston Street, Wellington, on Friday, 20 September 2013 at 11.00am. The purpose of this meeting is to inform and seek members’ support regarding the sale of 60 percent of MGIL’s shareholding in Vehicle Testing Group Ltd to Dekra SE. The Board feels that it is important to gain member support on the way forward. Further information detailing the background to the proposal will be made available shortly, via Member Alert/Updates, Radiator, the MTA website (www.mta.org.nz) member roadshows, branch meetings and by contacting your Business Manager or the Wellington Office.
Resolution “That MTA members support the MTA Board’s resolution to approve the sale of 60 percent of MGIL’s shareholding in Vehicle Testing Group Ltd to Dekra SE on the terms and conditions agreed between the parties.”
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radiator September 2013
Power of Attorney Given that the sale of shares in Vehicle Testing Group Ltd represents an important decision for MGIL, the MTA Board wishes as many members as possible to have their say. Consistent with previous SGMs, the Board has decided to allow members, if they wish, to appoint an attorney to represent them at the meeting. Copies of the Power of Attorney (POA) are available from your MTA Business Manager or the Wellington Office on telephone 0800 00 11 44. If, as a business owner with multiple MTA memberships, you would like one POA for all your sites please contact Cathi Butler, Cathi.butler@mta.org.nz or 04 381 8832, or you may choose to let each of your memberships submit a POA themselves. Please contact Cathi Butler on 04 381 8832 for further assistance.
Dated: 21 August 2013 -
David Storey MTA President
2013/14 Board Profiles MTA Elections MTA will elect its 2013/14 Board and Category Committees by electronic ballot. Voting opens Friday, 13 September 2013, and closes 5.00pm Friday, 4 October 2013. Full details will be at: www.mta.org.nz/2013elections. Alternatively, members can vote by downloading a ballot paper from the MTA website and posting it to: MTA’s Returning Officer, PO Box 9244 Marion Square, Wellington 6141. At the time of going to press 28th August 2013, the following nominations have been received. Nominations closed on 5th September 2013. Please check the MTA website for a full list of nominations for the board and committees.
Nomination for President I have been an MTA member for over 26 years and own a number of different automotive businesses. I have served on the Auckland Branch Executive for over 11 years, became Auckland Branch President in 2007 and served three years on the Automotive Technology and Collision Repair Committees. I was appointed to the MTA Board in 2008 and elected Vice President in 2011. I am MTA Board’s representative on the MITO Board and serve on MTA’s Audit and Risk and Remuneration Committees. Recently I participated in the Member Standards Review project and am now on the Vehicle Licensing Reform Taskforce and this year I have been actively involved in the Branch Review committee. Over time I have gained a wealth of governance, motor industry and MTA procedural knowledge. In 2012 I gained a Certificate in Company Direction and Chairing the Board. I have enjoyed working with and getting to know MTA’s Management team and my fellow board members who I would like to thank for their support and encouragement this year and for having the faith in me by asking me to stand again. With Service Managers in all of my businesses I am able to commit the time and energy to MTA.
Nomination for Vice President
Nomination for Vice President
Auckland Branch
Waikato Branch
Having completed my first year as Vice President I would like to continue being a strong advocate for members and the ongoing success of MTA. MTA needs continuity and experienced Directors who have been involved in the recent foresight and strategy planning to ensure the immediate and future survival of your Organisation. With a redefined focus, impacts from the vehicle licensing still unfolding and unstable economic conditions, MTA is facing unchartered waters and I feel I have the skills and experience the Board requires to guide it through these times. I am passionate about MTA and its place as New Zealand’s premier motoring association and will work very hard to continue to promote MTA to all members, stakeholders and the public. I am fortunate to continue to have the backing of the existing
I’m standing for the role of Vice President because I am the MTA Director with the most relevant skills and experience to tackle the significant challenges MTA’s horizon. As “President in Waiting” I will support the President whilst developing the craft in preparation for assuming that position. My career has progressed from apprentice technician, to corporate executive, culminating in business ownership with two Service Stations and vehicle repair facility in Matamata. I own or have experience on Boards of a number of businesses from health, local tourism, hospitality and service station industries. I have chaired the Service Station Committee and sat on the Waikato Branch for many years. As Vice President I will confirm the MTA delivers; 1. Member Benefits. Ensure tangible benefits are provided, while the MTA acts with member interests at heart.
radiator September 2013
Auckland Branch
David Harris
Malcolm DAVISON
10 •
David STOREY
MTA Board, Auckland Branch, and I believe many members throughout New Zealand. I plan to undertake further Institute of Directors training to ensure my knowledge and governance skills are up to date for the benefit of all members. Being acutely aware of my responsibilities and obligations as a Director I promise you…Commitment, Honesty and Integrity, hard work and to act in the best interests of MTA at all times.
2. Trust & Transparency. Members should know what is happening and why. 3. Long Term Sustainability. Ensure budgets are met, investment decisions are right, costs are controlled and the Brand is protected. With my commercial experience, youthful exuberance & lashings of common sense, you can be assured that your vote for Dave Harris will be the right vote for MTA.
Nominations for Board Directors Bob Boniface
André Hopman
Auckland Branch I am standing for re-election as an MTA Director as I feel confident I can contribute strongly in the areas of member benefits, growing enterprise value, marketing and brand strategy, governance and organisational efficiency. The MTA Board is reviewing many aspects of its efficiency of delivery of member benefits and my skills are very relevant to this process. I have previously served as a member of MTA Collision Committee, past Chairman of Auckland Branch Collision Repair Association, Principal and Managing Director of Auckland Panel and Paint Group Ltd, and Director of various different NZ and international companies. I am an Accredited Director of Institute of Directors, an experienced CEO and past director of substantial organisations involved in the
import and distribution of vehicles and machinery, This experience gives me the skills required be an effective and productive Director for MTA and its members. My main interests outside of the working environment are family, home and music but also with a strong interest in “things mechanical”; a car collector. I am actively involved in motorsport, on and off-road motorcycling, power boating and yachting. Please read my detailed CV and view my video, which are on the MTA website.
I have been an active MTA member since 1986, running my automotive workshop for 27 years, which I have recently sold. I am now concentrating on my used car dealership. I have spent several years on the Canterbury executive, three years as President, two years as Vice President and Automotive Technology Committee. In that time I gained huge experience with the help of Stephen Mathews guiding our members through the stress, financial pressure and now the rebuilding of their businesses. The MTA needs representation in the South Island especially with the $40 billion plus rebuild in Christchurch affecting not only our MTA members but New Zealand’s economy. Christchurch is New Zealand’s 2nd largest city with 386 members along with 1058 members South Island wide.
Judy LANGE
Keith WEBB
Southland Branch
Wellington Branch
After a year as a MTA Director I am standing for election to the MTA board. I have been a member for 30 years, and served as a Southland Executive member, President, and on the Board Advisory committee. I have been co-ordinating the Women in Business group in Southland since 2002, and a Guild member since 2006. I believe I have a skill set to support Member needs within the MTA, ranging from data required to make sound business decisions and education for owners and staff. As a Director I take a serious, active, and informed part in the governance and financial responsibilities of the MTA. In my experience as a Company Director involved in importing and distributing parts, vehicles, and owning
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Canterbury Branch
radiator September 2013
workshops, I have been involved in many areas of our industry and understand the issues faced by business owners. I believe in the excellence of the supportive delivery of services to members. I am a person of integrity and honesty. I have the time for this role, and the passion to see a task to completion. I feel confident I can represent you strongly. Please read my full CV and view my video on MTAs website.
I have been involved in the motor industry all my working life, gaining the highest qualifications, City and Guilds Technician 1-5 and Institute of Motor Industry in England before moving to New Zealand. I worked at Continental Cars as foreman and service manager before establishing Webb's Autoservices in 1989 in Wellington. I joined the MTA and got involved at branch level and held the position of Vice President and President and I am still to this day an active Wellington Branch Executive. I have also served on the Automotive Technology Committee both as an elected member and Chairperson and as Board Representative.
I am standing for MTA Director as I believe I have the time, skills, commitment, experience, honesty and integrity to promote and govern MTA to all our members, the New Zealand public and MTA board with my 37 years’ experience in the motor industry. The South Island needs your vote to balance all votes through all of New Zealand.
I have built a very successful business and been involved in the MTA for over 20 years. I have served four years on the Board of the MTA and I can continue to give my experience, knowledge and time to the board if elected and work for all members of the MTA. There are difficult times ahead for the MTA and having consistency on the Board is vital at this stage.
Automotive Technology
Service Station
Husmuck KALA Wellington Branch • Over 30 years industry experience, currently employed at Hutt City Auto Electrical Ltd (previous owner)
Tony ALLEN Tauranga Branch I started my career in 1979 as an apprentice automotive engineer. My apprenticeship was completed at a dealer franchise and I have since worked in both dealership and independent repair facilities. I am still actively engaged in automotive repair as the owner of a four person workshop which is used to dealing with difficult driveability issues. I was certified A grade and then completed the more advanced Automotive Technicians Certificate. In recent times I have attended numerous technology related courses both in NZ and the USA. I feel I could continue contributing to this committee with a sound knowledge of modern automotive control systems and knowledge of the latest emission related legislation which applies overseas and within NZ. The recent changes to warrant of fitness frequency also pose a set of new challenges to all workshops doing warrant of fitness inspections. I feel it would also be important for the committee to help with the transition in any way possible and in the longer term advocate for a more enhanced vehicle inspection
• National Certificate in Motor Industry (Advanced Technical) Level 5 with strand in electrical and mechanical. November 2010 (MITO) • New Zealand Trade Certificate in Automotive Electrical Engineering June 1983 • New Zealand Trade Extension Certificate in Motor Vehicle conversion Petrol to Gas (LPG/ CNG) October 1983 • Training Certificate: First Aid Level 1 with St John February 2012 • Bosch training in Bosch KTS570 scan tool and ESItronic with Frank Seno Bosch Australia • Bosch training in Gasoline Direct Injection, Sensor Diagnosis • Petroject training in scope essentials • VDO training in Navigation and Multimedia systems with Mark Schembri Siemens VDO Australia • Hella New Zealand training in lighting technology and accessories • MITO training in Diagnosing Electronic Spark Timing systems and Air Bag Safety Course • New Zealand Security Association past member (includes police clearance) • Liaising with trade and retail customers • Attending Weltec Automotive Technology Advisory Committee meetings
Dave LARKIN West Coast Branch Together with my wife Julie, we own and run Lake Brunner Service Centre, a Service Station/workshop in the town of Moana on the shores of Lake Brunner in the West Coast of the South Island. We have been members of MTA from the day we bought the business 18 years ago. I have been involved with the local branch for this time, presently Branch President for the second time. We have lived in Moana for 26 years and have three children now just leaving home for further study. I am putting myself forward for the Service Station committee as we are a small rural very diverse business and I feel we have achieved a lot in our business over the years and believe we need input from all size businesses. We have expanded our retail side over the last two years, becoming an ‘On the Spot’ (a part of the foodstuffs banner in the South Island). I am a member of our local Fire Brigade as Deputy Chief with 24-years service and a member of Lake Brunner Coast Guard. When I can I enjoy motorcycle trail bike riding and have just started mountain biking.
David COX North Taranaki Branch I have lived in Taranaki all my life. After working at the local garage after school doing all sorts from tune ups to clutches and valve grinds, I then completed an apprenticeship with Holden, Alfa Romeo, Mazda, Volvo, and Isuzu Truck franchises. I gained trade certificate, advanced trade certificate, WoF and alternative fuels certificates while there. I then spent five years at a Toyota and Mercedes franchise and then did two years at Diesel and Electrical overhauling injectors, injector pumps, turbos and doing auto electrical work. In 1997 I started my own business RoTech Automotive, doing general work, high performance and rotary engine work. Since 2003 I have attended several AECS courses and was invited to join the YES diagnostic network. RoTech has several scan tools, two scopes and a 4 gas analyser and we do diagnostic work for other garages. I have been on the local MTA branch for three years and am now Branch President. Just over a year ago RoTech was invited to join the Auto Super Shoppe organisation. Our second apprentice has just gained his National Certificate and we have two more in training. I am passionate about the industry and where it is heading.
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radiator September 2013
Matt ROGERS Auckland Branch I have managed several Aftersales Departments and have worked with a number of different brands both locally and in Europe. I am currently the Group Aftersales Manager for Archibald and Shorter Roverland with responsibility for managing three dealerships fixed operations in Auckland encompassing four unique brands. Past achievements include, but not limited to: • Service Department Dealer of the Year on several occasions • Awarded global best practice for a nationally run Aftersales marketing programme • Completed several management courses through Deliottes I have a very strong passion for the automotive industry and am committed to seeking improvements in both customer service and dealership growth. I see this position in the Automotive Technology Committee as an opportunity to strengthen the MTA and its members in areas such as apprenticeship training, modern vehicle technical requirements and business standards/performance.
Christopher RAWSON North Otago Branch My name is Chris Rawson and I am married with four children. I have been in the service station industry since 1982. At present I co-own a BP2go service station with a workshop and hire yard attached. I have been branch president twice and have been on the local executive since 1982, and have been a regular attendee at the national AGMs, and Regional conferences including helping to organise one in North Otago. I have also been involved with school board of trustees (including chairperson) and other community committees. I feel I have the experience to put back into the national service station convenience store committee. At present the service station committee is organising its annual survey. I can’t stress enough that we get as many people filling this in as possible. The more people involved, the more credible the survey becomes. We are also looking at some training courses that will be beneficial to our membership. I would therefore appreciate your vote to continue with what we are focusing on.
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The rise and rise
viewpoint
of China
Alistair Hill comments
The Chinese automotive industry is a tale of both euphoria and uncertainty. The global industry has generally taken the view that despite the inherent difficulties, of which there are many, they cannot afford not to be part of the scene. Moreover, the demands today from the global OEMs on suppliers dictate that they have complementary footprints. This means that much of the supply base has no choice but to be fully engaged. The other side of the coin is the uncertainty about the quality of the supply base, its ability to innovate and the security of the hard won intellectual property which today underpins a supplier’s competitive advantage.
The structure of the industry itself is characterised by difficult governance structures and immature joint venture relationships characterised by a lack of trust between many of the partners. However, currently partnerships are clearly necessary to be a part of the industry with its promise of growth and volume. From a low-cost point of view China has held the promise of the ultimate in terms of a manufacturing and supply base and for two decades now OEMs and suppliers have been deluged with information about the potential opportunities, but they typically know relatively little about what China’s aspirations are about its automotive industry’s future apart from a goal of sustainable growth and a steady accumulation of influence. Indeed aspirations are made clear through government policy, such as the attempt to dominate the world’s magnesium supply industry (using a cheap but very dirty process that non-Chinese manufacturers have shied away from in favour of cleaner technologies), which is crucial to vehicle weight reduction and thus to CO2 reduction.
China and the electric vehicle Even more overtly China has made a serious play for a powerful position in the electric vehicle field (EV). Beyond 2015, there might be spectacular growth in the market. Around 35 new EV models are to be launched during the next few years from both Chinese OEMs and western OEMs. This is likely to lead to a situation of heightened competition in the sector in the region, allowing it to develop as a cost driver for the rest of the world. Alongside this, State Grid Corporation of China, China Southern Power Grid, Sinopec, CNOOC and other Chinese energy giants have announced plans to construct EV charging stations. State Grid Corporation of China plans to build 10,000 charging stations and more than 500,000 AC charge piles by 2020, with CNY2.3bn to be invested in charging stations. 10000 8000
8000
7200
7000 6000 4500
5000 4000 3000 2000 1000 0
Figure 1: Growth of EV charging facilities in China Source: Research China
9000
9000
150 - 160 2010
2011 - 2015 Charger
2016 - 2020
Charge Pile
Consequently, although European urban-based transport is forecast to be the largest EV growth area during the next few years, with more than 350,000 units being sold compared to less than 150,000 in China and less than 100,000 in North America, the picture of the market will change rapidly in the second half of the decade as China intends to wholeheartedly embrace the EV for its rapidly urbanising population. China is already the world’s largest producer of batteries for consumer electronics and companies such as BYD, one of the largest, are marketing their own EVs in China, utilising a proprietary battery pack that enables a claimed driving range of over 186 miles (300km). BYD employs 150,000 people in China and has ten production facilities as part of its vertically integrated supply and assembly structure. It has a stated aim of owning and managing every level of the supply chain, and EVs are a significant opportunity for BYD to pursue that strategy. In 2009, new regulations for the production of both nickel-hydrogen and lithium-ion batteries were submitted to China’s State Council, and China’s production is likely to reach 360,000kWh for nickelhydrogen and 4,000,000kWh for lithium-ion. China has around 27 percent of global lithium reserves and 80 percent of the rare earth metal, neodymium, a critical component of high output electric motors.
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radiator September 2013
Former Chinese leader, Deng Xiaoping, once said that the Middle East had oil but China had rare earth elements (REE). This increases the attractiveness of EV production in China and just as OPEC developed a strategic position with oil, EVs give China an opportunity to increase its influence over the automotive landscape of the future. It also provides part of a solution to China’s energy security concerns and its urban pollution problems, which are both increasing as its consumption of energy rapidly increases. Because of this, China’s key ministries are sponsoring ambitious plans to promote EVs across government fleets in many of its cities. The government approved new standards in April 2010, and in June 2010 launched a pilot programme offering consumers a subsidy of up to US$8,800 to purchase ‘new energy vehicles’, which include EVs and plug-in hybrids.
Dominance in rare earth metals The position regarding rare earth metal is worth closer examination; it has been forecast that the demand will exceed the supply within the next few years. Of concern is the fact that China supplies around 97 percent of the current demand but is increasingly limiting its exports in order to preserve the supply for its own consumption. Added to this, Japan has been stockpiling rare earths. Because of all these factors, the prices of rare earth oxides have increased dramatically since 2009 and have showed considerable volatility during 2011. On the other hand, the rapid increase in the prices of rare earths and the threat of limited supply from China have prompted mining companies in the US and Canada to reopen mines that became uneconomic when the inexpensive supply from China became available. Other companies are researching the exploitation of other sources. Current global REE demand is consistently estimated to be 105,000 tons (+/- 15 percent) of rare earth oxides (REOs, the main way REEs are purchased) per annum. End Use
China
USA
Permanent Magnets
16,500 500 3500 500 21,000
Metal alloy
15,000
Catalysts
11,000 5000 2000 21,000 20,000
Polishing powders
10,500
1000
750
SE Asia
4000
2000
Others
1000
750
Total
14,000
5000 500 2000 500 8000
Glass additives
5500
Ceramics
3000 1500 2000 500 7000
Other
3500 500 1500 500 6000
1000
750
Figure 2: Projected REE demand at historical growth rates Source: Alonso et al
21,000
Phosphors
750
Currently magnets using neodymium, praseodymium, and samarium (with dysprosium and terbium additives) are the strongest and lightest that are commercially available. Assuming technology does not change significantly, large REE demand growth is expected in the permanent magnet sector. Taking expected growth in the various sectors of demand give the lower bound for average growth in total REE demand over the next 25 years at 5 percent per annum; the upper bound is at 8.6 percent per annum. A model assuming historical growth (for a given sector, future growth was close to historic growth rates) resulted in a 5.6 percent average annual growth rate. Such a growth would yield a demand of approximately 210,000 tonnes total REOs in 2025. The US Geological Survey estimates that total world REE reserves are 110 million tonnes; however, a large percentage of these reserves are located in deep-sea manganese nodules. In addition, many of the REE reserves are either in small or low-concentration deposits. These factors make a large percentage of world REE reserves simply too expensive to mine with current methods. Thus, the number of readily mineable REE deposits is quite small. This is the main limiting factor in ramping up REE supply.
8000
Total demand
70,000
10,500
18,000
6500
105,000
Market share
68%
10%
16%
6%
100%
Table 1: Global estimates of demand for rare earth oxides 2012 Source: Hatch
As illustrated in Table 1, permanent magnets, metal alloys, and catalysts are the sectors with the greatest demand for REEs. However, REE use in polishing powders also is a large portion of total REE demand. The permanent magnets sector is expected to have large growth over the next century. This is mainly due to increase demands for green energy. Highefficiency generators in turbines and electric motors require strong, yet light, permanent magnets.
Besides physical limitations, there are also many economic, environmental, and political limitations to increasing supply. Opening a mine requires high capital input due to the necessity of opening both new mining and refining facilities. Finally, there is a lack of security in the supply chain; in 2011, over 95 percent of global REE supply originated from China. China is also has the largest demand for REEs, at 65 percent of total. The US is the next largest consumer, at 15 percent of total demand. In 2010, China announced a 40 percent reduction in exports of REEs. This created large instability in the REE market; there were no other major sources for REEs. China is expected to continue reduction of exports as it seeks to reduce stress on its REE reserves.
The growing domestic market The Chinese automotive market has already become one of the largest in the world. There are many different viewpoints on where the China market is and where it is going, but there are several implications to consider when assessing China’s market: Actions by the government and after all this remains a command economy, means that the competitiveness in the Chinese market is headed for a steady growth scenario for the automotive industry rather than the roller coaster ride it has been. Steady growth continued on page 12
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Exporting from China
continued from page 11
allows more time for Chinese domestic manufacturers and suppliers to catch up technologically with foreign manufacturers and suppliers, while exponential growth might strain the resources necessary to keep up with the advantages foreign manufacturers bring with them. Understanding the idiosyncrasies of the Chinese domestic market is critical to growth. A recent conversation with senior engineering and design engineers at Jaguar Land Rover illustrated this. Recent market research they had carried out indicated that Chinese purchasers of executive cars want to be able to avoid breathing outside urban air (for obvious reasons), but to be able to smoke in the vehicle! This might seem something of an anachronism to conventional firstworld thinking, but brings real issues in the performance of HVAV and air cleaning systems, which at the same time needed to drastically reduce energy use. HVAC is the largest parasitic power drain in modern vehicles and as such is a key target for most OEMs in their struggle to gain fuel efficiency.
1400 1200
CO2(ppm)
1000 800 Air-recirculation 600
Air-intake
400 200 0 0 10 20 30 Time Figure 3: CO2 build up with HVAC set to recirculate (1000 ppm is considered detrimental to attention span)
However, downsizing and simply avoiding its use are not options because the consumer expects effective systems that don’t smell. Furthermore, in sophisticated cars they expect a high degree of automation, not just in multi-zone and temperature terms, but in the removal of noxious, and harmful gases. Once you stop bringing in large amounts of outside air, this is all compounded by the problem of managing CO2 content very carefully (Figure 3 illustrates the speed with which CO2 build up can become a serious issue even with a simple HVAC system on recirculation). In the future such systems will be equipped with sensors that can detect unwanted gas particles and selective reactants and catalysts that allow efficient purification, as well as filtering particles from smoke. Such systems in development today are primarily driven by the rise of the Chinese executive vehicle purchaser – although I have no doubt that someone like Jaguar or Mercedes-Benz will bring it out first on their high profile technology leader models such as the ubiquitous S-Class. However, exporting vehicles to developed markets is now developing serious momentum, and evidence of this can be seen in growth of Great Wall in markets such as New Zealand, all be it from a low starting point.
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From an importing perspective for New Zealand, exports are a large part of the plan. Exportation of vehicles and components are part of the overall plan, but the timing and final destinations of the products differ. Chinese companies intend to export their products, but emerging markets are a primary focus. Furthermore, as quality and manufacturing issues become resolved, and if component scrappage can be reduced this will be increasingly profitable. It will in all likelihood be well into the next decade before the next big low-cost manufacturing base matures enough for the automotive sector in Africa. Exporting vehicles to developed markets is now developing momentum, and evidence of this can be seen in growth of Great Wall in markets such as New Zealand, all be it from a low starting point. The logistics of establishing an entire sales and service infrastructure in an already established market can challenge even the most capable Chinese manufacturers. The export of products from a foreign joint manufacturer to its home market also has its complexities and is unlikely to happen on a large scale in the next five years. However, the movement of vehicle from Chinese transplant capacity into Asian markets and New Zealand and Australia is likely to become commonplace. The Chinese government continues to play an important role in determining China’s future market. Over the past 20 years, the Chinese government’s management of its economy has shaped the structure of the automotive industry by determining the joint venture relationships among Chinese and foreign manufacturers. Today, it manages the growth of the domestic market through its regulation of financing as a tool for vehicle sales. Despite the large remaining gaps between Chinese manufacturers’ and suppliers’ performance and world-class levels of products and processes, Chinese companies recognise they must develop these capabilities in order to survive. They recognise that they have no other options. If they do not continually improve their products, profits are likely to level off, and companies may be forced to increase production, which then begins the downward spiral of volume versus profit that has seen the demise of so many OEMs over the past 30 years. A recent example of the acquisition of new technology is the government-owned carmaker Shanghai Automotive Industry Corporation (SAIC) that currently builds cars for Volkswagen and General Motors in separate joint ventures. SAIC subsequently bought SsangYong, and a number of intellectual property rights from MG Rover. SAIC then produced a vehicle based on the Rover 75 lower-premium model in China and former MG Rover researchers helped with the engineering changes to adapt the car to China. At SAIC’s request, a British engineering services subcontractor hired dozens of former MG Rover researchers to work on SAIC projects.
In the medium to long term the Chinese government recognises that it is necessary for both long-term survival in the automotive industry and a growing export base to develop more sophisticated vehicles within Chinese OEMs, although today the technology comes from global suppliers and engineering technology companies. However, such ventures enjoy significant government support. In order to supply the target markets overseas, Chinese OEMs mostly export semi-knocked-down (SKD) or completelyknocked-down (CKD) kits, which are then
assembled with locally sourced parts in plants established for this purpose. By exporting SKD and CKD units tariff advantages of up to 80 percent in comparison to completely-built-up-units (CBU) can be achieved. For example, in India, where import duties of 100 percent are applied for fully assembled cars, knocked-down car parts can be imported for a tariff of only 10 percent. Similarly unattractive conditions for the import of complete cars exist in Egypt, Brazil or Russia. As a result, Chery and its Chinese competitors already assemble more than
half of their exported cars overseas. In 2012 China produced some 19.3 million units and emerged as the world’s largest automotive production market accounting for more than 25 percent of global vehicle production overall. Exports reached some 850,000 units in 2011 with some exporters now achieving growth rates of 50 percent focussing on the Middle East, South America and Russia. Furthermore, the government has set the ambitious target for 2020 of 10 percent of the global market.
Figure 4: Global presence of Chinese OEMs
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radiator September 2013
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news and events
Fastest Spanner Competition
The Invercargill Workingmen’s Club revved into life on Thursday 25 July, as competitors took part in the MTA Southland Branch Fastest Spanner Competition. Twenty Southland technicians in teams of two fought to claim the 2013 title by completely stripping, reassembling and firing up a Toyota engine in the quickest time. This year, Tristan Duffell and Allen Whitaker from Prestige Commercial claimed the title. MTA Southland Business Manager Michelle Findlater said, “It was a great night out for the industry. The competition showcases our talented technicians and the future of our industry. It’s good to see a bit of local rivalry, and how the teams work under pressure too”. More than 200 people attended the event, which is the biggest turnout since the competition started four years ago. $1,000 raised from the event will be donated to the Southland Hospice. The top three teams received a trophy, cash and prizes from the sponsors.
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Winning team: Allen Whitaker and Tristan Duffell
Results
First: Tristan Duffell and Allen Whitaker (Prestige Commercial), 12.09 minutes. Second: Callum Baird (Invercargill Honda) and Daniel Strang (Komatsu), 13.50 minutes. Third: Jeremiah Smith and Jordan Andrews (Advance Agricentre), 18.35 minutes.
Owner Sessions Build business through educating customers In his article in August’s Radiator magazine, MTA CEO Stephen Matthews wrote about social media as a great way to engage with customers. He’s correct. It is a great way, and as members become more familiar with its ins and outs, they will get even better at using it as a business development tool. With changes to WoF frequency now a reality, many members will need to be thinking about other tools, besides social media, that they can use to develop new streams of business. With fewer WoF’s needed in the future, doing what you’ve been doing up until now may not sustain your business in its current form. One idea that some members are already putting into practice is that of running short one-off ‘Owner Sessions’ to show owners how to get the most from their car. In some cases it's dealers gathering together a few recent buyers, in others its repairers identifying which of their current customers might benefit from knowing more about how to operate their car safely and get the best from it. In other instances, members have even targeted local interest groups or organisations where there might be sufficient interest to attend one of these sessions and at the same time turning them in to prospects.
Members can show their customers how safety features like (depending on what is fitted to their car) ABS, ESC and Traction Control operate to provide safer motoring. Likewise, you can also encourage customers to learn about features such as Bluetooth, SatNav and Electronic Aircon systems. Because members are dealing with these sorts of features every day, it’s easy to assume everyone has the knowledge or confidence to make the most of them; in reality many owners don’t know, and aren’t sure where to ask. Members have also found that a little explanation and guidance about basic maintenance is always much appreciated. It’s as simple as showing customers how to do some of the simple things like change a tyre and check tyre pressures, remove tar from the paintwork, how to clean off vinyl bleed from the inside of the windscreen, checking oil levels, wiper blades and washer bottle fluids these are everyday jobs but can seem daunting for first-timers. Most of what is being discussed during these sessions is usually in the Owners’ Handbook. The problem is that in some cases the handbook is missing, while for some people, it’s just too hard; they’d rather watch someone show them what to do. Of course you will always win people over if you can give them some practical tips on how to save fuel.
Being ‘in the trade’ sometimes makes it easy to forget that some customers have very little idea about how to care for their car, operate it safely, and get the most out of it.
Being ‘in the trade’ sometimes makes it easy to forget that some customers have very little idea about how to care for their car, operate it safely, and get the most out of it. Much of what we take for granted is seen as ‘specialised knowledge’ by some people. If there is a way to share and spread this knowledge then it can become a win:win situation for members and their customers. Running these ‘Owner sessions’ means members have a really cost effective means to show their customers that they have a genuine interest in them and their vehicle while at the same time, allowing customers to become more familiar with their vehicle and gain confidence in how to use and look after it. The end result is usually a stronger relationship with the member and a greater likelihood of ongoing business with them, plus they’re more like to refer friends and family. The idea here is not complicated or costly; it just needs a bit of planning and organisation. These Owner Sessions, can be run periodically and last about an hour or so. Importantly, they are not designed to turn customers into mechanical DIY experts. Instead, what they do is concentrate on making sure that customers are familiar with the major operating and safety systems in their car. Because you are the one that has increased their knowledge and confidence, that builds your brand in their eyes and within your local community, which means they are more likely to come back to you to get their vehicle serviced.
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Setting up a session is as simple as deciding what you can cover in about an hour. You then need to find the right person on your staff to deliver the session, select the right venue (usually in or around your premises), work your database to select the appropriate customers or local group members, and organise to have a tea or coffee at the end of your session. If you want you can even give each attendee an MTA Vehicle Service Book (there’s a new version out now – see page 8) so they can ‘look after’ their vehicle longer term. MTA has developed some guidelines about what you might want to cover and possible timelines and checklists to use to set up your sessions. These are available on the MTA website at www.mta.org. nz/ownersessions. It’s up to individual members to tailor a programme that suits them and their customer group(s). In the new environment that many members will soon be operating in, finding additional, cost-effective ways to connect with customers will be a priority. Owner Sessions are a simple and easy place to begin.
Volkswagen and Audi 4 Speed
transmissions Martin Brooks
A transmission that has been around since around 1990 in various configurations is the 4 speed unit used mainly by Volkswagen and Audi. This unit can be known by several different model codes depending on the manufacturer. The transmission comes in two main configurations the eastwest style mainly used by Volkswagen and the north-south configuration used by Audi. The transmission is a fully electronically controlled unit with 3 clutches, 2 brakes and a one way clutch. Early units did not have a traditional lockup converter They had a dual path input so the lockup function was performed in the actual transmission. From around 1995 a major redesign saw a normal 4 element torque converter fitted. The valve body is fitted with 7 solenoids with 5 being simple on/ off solenoids and two being variable. The two variable solenoids are used for lockup and pressure control. Servicing of the unit is limited to fluid and filter change as there are no service related adjustments on the transmission. The electronic control system is quite sophisticated with features such as adaptive shifting and hill recognition being common in many vehicle models. The transmission control system is very sensitive to engine control and inputs from the engine so it is important that when you are faced with a shift issue that you are sure that the engine is performing correctly. As an example a fault with a throttle position sensor may lead to the transmission switching to a sport mode giving late shifts or even a complaint
Transmission Design Codes Code
Description
095 and 096
East West configuration without standard lockup converter. Volkswagen to 1995
097
North South configuration Audi up to 1995
098
East West configuration with different differential arrangement. VW Transporter
01M
East West configuration with lockup converter VW 1995 on
O1N
North South configuration with lockup converter Audi 1995 up
01P
East West with different differential arrangement VW Transporter
ACEOMATIC TRANSMISSION SERVICES LTD Automatic Transmission Repairs and Service Electrical Repairs and Diagnosis Torque Converter Specialists
27 Stanmore Road, Christchurch
Phone: 03 381 1333 service@aceomatic.co.nz www.aceomatic.co.nz
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radiator September 2013
of no fourth gear. You should also note that all models have a separate differential and it is important that the correct differential lubricant is used. Correct fluid is also important in the transmission especially in the later models with lockup converter. Because of the time the transmission has been around there are a range of different issues that are seen. The solenoids are prone to failure both electrically and hydraulically, the valve bodies are prone to wear and units with high kilometres may have seal problems especially if they have not been serviced. Many models have the transmission fluid cooler bolted to the transmission with water being taken to the cooler rather than the cooler being situated in the radiator. It is important that the correct engine coolant is used as these coolers are prone to failure allowing coolant into the transmission fluid. As the transmission has been used on a large number of different models and engines there are a large number of differences in final drive ratios as well as some internal ratio differences. Therefore it is important that when changing a transmission the correct ratio is used. The transmissions are identified by a specific code that is stamped on the case and also on the paper vehicle identification sticker that is often found in the spare wheel area in VW and Audi vehicles. This code is different to the main design code listed in the table left. Whilst we are discussing this transmission we should also mention a similar unit fitted to Renault vehicles. This unit is mechanically the same in design and power flow but uses a different valve body and solenoid setup. Some internal parts such as friction plates are the same. Once again it is important to use the correct fluid in both the transmission and differential. I am always happy to receive feedback or suggestion for this column and would be happy to cover any subjects that you may find interesting. Feel free to contact me at
martin@aceomatic.co.nz
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SAVING FUEL
A MIRACLE IS SLOWLY
UNFOLDING The motor industry’s work on improving fuel consumption is becoming apparent. JAKE VENTER explores the steps that have been taken.
For the last 20 years the motor industry has been hard at work trying to improve fuel consumption and the massive research efforts are beginning to pay off. Hybrids, plug-in electrics and even plug-in hybrids are now available. These are all expensive solutions but there are less expensive changes that are being made to single-engine petrol or diesel vehicles.
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GENERAL ENGINE CHANGES Downsizing The most effective way to reduce fuel consumption is to downgrade to a smaller engine. Many people are not prepared to do this, because they’re used to the performance level guaranteed by a more powerful engine. The motor industry has responded by reducing engine sizes, and even the number of cylinders, in an effort to reduce fuel consumption. The past year has seen a number of four-cylinder engines being replaced by three-cylinder ones, to eliminate a significant amount of internal friction. The power output is often left unaltered or even increased by fitting a turbocharger.
Stop-start Many of the latest models are fitted with a stop-start mechanism. The engine stops if the car is stationary for more than about five seconds and starts again as soon as the driver’s foot touches the throttle or the clutch pedal. Some drivers don’t like it and, in most cases, it can be switched off. The starter motor usually has to be beefed up because it has to work more often than is desirable. The reduction in fuel consumption depends on how heavy the traffic is.
Reducing engine friction
Cylinder de-activation When cruising at a constant speed most drivers seldom use more than 30 per cent of an engine’s power output. Under these conditions an engine is very inefficient because it inhales very little air, so the pressure at the end of the compression stroke is very low. At small throttle openings the engine also experiences significant pumping losses. This refers to the energy wasted to suck in the air past the nearly closed throttle and the intake valves. Both these losses can be reduced considerably by utilising a large throttle opening when the power demand is low. This contradictory situation can be achieved by cutting some of the cylinders out. The remainder would then have to work harder to deliver the same output as before. The fuel consumption will improve because the combustion is more efficient, and there are fewer pumping losses. Side-thrust friction between the rings and the cylinder bore on the non-working cylinders will also be reduced considerably, resulting in a further improvement in efficiency. The cut-off function is activated at part-throttle between about 1000 and 4000 r/min. The valves are kept closed and at the same time the ignition and fuel supply is cut off. The switch-over is immediate and imperceptible except for a slight change in engine note. Increasing the throttle opening will immediately bring the inactive cylinders back into operation.
On older engines a lot of power is wasted in friction, as well as in driving oil, water and fuel pumps and accessories such as the alternator and power steering pump. On most modern engines many components have been redesigned to reduce these losses. The piston ring to cylinder wall interface has received a lot of attention, because it is a high-friction area and coatings are often applied to reduce friction.
PETROL ENGINE CHANGES In earlier days, when engines were fitted with carburettors, most engines ran lean at steady speeds. This resulted in good fuel consumption at normal cruising speeds. The move towards cleaner exhaust emissions has resulted in the introduction of catalytic converters. These units are efficient only when the mixture is close to chemically correct, making computer-controlled fuel injection necessary. This ensures that the mixture is maintained at the correct level while cruising and is slightly enriched only during cold idling and full throttle running. This does not improve fuel consumption at steady speeds, but ensures that an unnecessary rich condition cannot occur. The other side of the story is that computer-controlled ignition timing has resulted in a vast improvement in efficiency. Knock sensors are employed to keep the ignition advance at the optimum for the available fuel or the ambient conditions. A modern control unit is able to monitor and control each cylinder separately in time for each combustion event. In contrast, the static ignition setting on a distributor and coil arrangement is determined on a worse-case scenario basis by the factory. It is set at the same value for each cylinder and this makes it very inefficient.
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GDI injectors improve fuel efficiency by optimising fuel flow into the cylinders
Direct injection Fuel injectors usually squirt fuel into the intake manifold, but some of the latest units deliver the fuel directly into the cylinder. This enables such a precise control of the timing and the amount of fuel delivered that some of these engines no longer use a throttle butterfly to control engine speed, and subsequently reduce these pumping losses. Gasoline direct injection (GDI) is often combined with fuel stratified injection (FSI) to improve fuel consumption and power output. In this case the engine management system controls the fuel injection via one of three modes: • When the engine is running under a light load, such as when decelerating or cruising at low speed, a lean-burn mode is selected. The small amount of fuel needed is injected into a space near the spark plug during a later stage of the compression stroke. This mixture is mostly surrounded by air so that the flame is kept away from the cylinder walls to reduce heat loss. The initial combustion takes place in a doughnut-shaped cavity in the piston top. • At moderate to high cruising speeds, the fuel is injected in the normal manner, ie during the intake stroke. The resulting mixture is controlled to be close to chemically correct. • When running at close to full throttle, a slightly rich mixture is supplied to speed up the combustion process. This reduces the time that the engine interior is in contact with hot gas and reduces the chance that detonation will occur.
Breathe easier Older technologies that have helped to improve fuel consumption include variable valve timing and variablelength intake manifolds. Both of these tend to improve engine breathing and promote the favourable torque spread that results in a reduced fuel consumption.
CHANGES TO DIESEL ENGINES In earlier days, diesel engines were equipped with mechanical fuel-injection systems. These had the disadvantage that the fuel line feeding each injector was of a different length with the result that the pressure reaching each injector was different. The pressure also increases with pump speed (ie engine speed), with the result that the combustion could be regulated only in crude way. Modern fuel-injection systems employ a common rail, which is effectively a reservoir that is kept under a pressure as high as 2 000 bar by an electric pump. Each injector gets fuel at the same pressure from the common rail and is activated by a solenoid. This means the amount of fuel delivered depends on only the opening time and this is controlled for each cylinder separately by the electronic control unit.
Multiple injection pulses The very latest engines are equipped with piezo-electric fuel injection units that are about four times faster than solenoids. They enable up to seven separate injection pulses for each combustion event. This makes it possible to control the combustion very carefully to reduce noise and pollution. Separate pulses decrease peak temperatures by utilising the cooling effect due to the fuel droplets evaporating. The result is that the localised combustion of fuel occurs slower and quieter.
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radiator September 2013
A new generation six cylinder diesel V-engine, with direct diesel injection through piezo-injection valves
Lower compression ratios Traditionally, the compression ratios of diesel engines have been in the range 17:1 to 21:1. This improves cold-starting and increases combustion efficiency, but the high side thrust between the piston and the cylinder wall that results from these compression ratios has resulted in excessive internal engine friction. Some of the latest diesels have compression ratios as low as 14:1 to reduce fuel consumption.
OTHER CHANGES Drag co-efficient reduction At higher cruising speeds most of the engine’s power is used to overcome drag caused by the presence of air. Aerodynamics, the study of airflow, is extensively used to find a body shape with the lowest resistance. The result is that many modern bodies are so slippery that the power needed to maintain 100 km/h has been halved from 20 to 10 kW.
Gearing changes
An engine’s internal frictional losses increase as the engine speed goes up. This means that if the car needs 10 kW to maintain 100 km/h, it will generally use less fuel to deliver the required power at 2 500 than at 3 000 r/min. This is one reason for the higher gearing that can be found on most new cars. Six, seven or even eight gears are beginning to appear in an effort to ensure an engine is operating in the most economical condition as much as possible. Unfortunately, very few drivers are always in the correct gear, so that better fuel consumption can be expected only if the gear changes are automatic.
AFTERMARKET FUEL-SAVERS Practically all fuel-saving magnets, fuel additives, hydrogen generators and other devices are useless, and should be avoided. If you don’t believe me, Google “bogus fuel-saving devices” on the Internet and you’ll get a number of governmental and other respected sites that will confirm the above statement.
From where I'm standing... It was a case of the Young Guns firing at the recent Coates Hire Ipswich 360 round of the V8 Supercars at the Queensland Raceway. Young Kiwi driver Scott McLaughlin took out race two to record his second V8 Supercar victory of the season so far, after finishing second in the first race of the meeting. By winning the third race of the event, another Rookie Chaz Mostert became the 10th different winner of the season and round out a weekend when the young guys really did come up with the goods. Scott’s second win was no fluke, he has the calmness and confidence behind the wheel of someone with 10 years of top GM have reportedly gone to the Australian Government level experience. The Gary Rogers to seek additional support to ensure the continued Motorsport team are providing a production of vehicles in Australia and thus protect many very good support act for Scott thousands of Jobs. I’m far from an expert in this area, and he is clearly very comfortable but it’s common knowledge in Australia that both Holden within the team. Mostert is and Ford have already had a fair old hand contracted to Ford out from the government in recent years, Performance Racing Far too many and with the way things are at the moment, and has been placed at it’s far from certain that there will be any drivers are Dick Johnson Racing to more help available or provided. With many gain experience. FPR are giving carrying people in this part of the world believing the DJR technical support and ‘advice’ that they need to move away from passengers probably financial too in the larger cars coupled with what seem to be hope of saving the struggling that they expensive production costs, Australia really is outfit from closing its doors. up against it as a long term car manufacturer. For Mostert to outshine shouldn’t be It’s managed to sustain a local production FPR’s factory pilots in the base for 60 odd years, but it seems to be up same race certainly makes a against it these days. If support is not forthcoming, then statement and creates a few more options presumably Holden would look to stop building cars; an in the driver market. off-shoot of which would probably mean the end of the V8 I completed the third and final segment of Commodore. I sincerely hope that this is not the case. the Murph in Schools programme in August. The old Ford versus Holden battle formed the basis for Visits to Mt Aspiring College in Wanaka, the high levels of interest in V8 Supercars and helped Cromwell College, Gore High School, turn it in to the success it is today. Ford have said they’ll Waitaki Boys in Oamaru, Timaru Boys High find a means to remain part of V8 Supercars, and I know and Rangiora High School finished off, in my V8SC heirachy are confident they’ll do so. One of the key view, another successful and rewarding year reasons behind Car of the Future was to be able to adapt delivering the Safer Young Driver message. to the market conditions. They’re happy with how things Unquestionably though, there is more lobbying have gone having Nissan and Erebus-AMG on the grid, to be done to get increased changes to the with Volvo to join in 2014. With forced changes for Holden Graduated Licencing System (GLS) and improve and Ford, a different looking grid is the future of the sport, the compulsory practical requirements. One thing and with that being the case, then I’m sure Holden will find that continues to be large on the radar of major the means to be active participants in racing, no matter issues is the lack of respect young drivers have what the car is or where it’s built. for the restricted license phase of the system. Far too many drivers are carrying passengers that they shouldn’t be. The risk that this brings is not being recognised and this is why the restricted license is still the deadliest phase of the GLS. Personally, I don’t think parents are really aware of the risks either and some are not as strict at enforcing the rules as they should be. Drivers need to use the restricted license for what it was designed for, not for providing a taxi service for their mates. “Change” is something we humans don’t embrace that well, from my experiences anyway. Changing routines or things that we have become very comfortable with are sometimes very difficult to accept. The shift to allowing other manufcturers into the SuperCar Fraternity was hard enough for many fans to endure. So Ford’s decision to cease production of the Falcon range after 2016 has had plenty of diehards questioning and giving opinion on the future of the class. Murmurings that the Commodore might follow the same fate seem to be lurking as a possibility too. I’ve had a number of fans ask me what that might mean for V8 racing in this part of the world.
At the end of the day cars are still injuring and killing way too many people. Everyone needs to play their part in helping to reduce the Road Toll. Scott McLaughlin
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radiator September 2013
Best wishes
road test
- Ford Transit Custom
courtesy of autotrader.co.nz
COOL
custom(er) > WHAT DO I NEED TO KNOW? That vans can be cool! That’s always been the case of course – light commercials have often led the way in powertrain technology and styling smarts. But it’s especially true of the new Ford Transit Custom, which is a lot of fun to drive and looks the part too, with many styling cues from the brand passenger-car range. Of course it doesn’t hurt when you deck it out in stripes and alloys, as per our test car. The Transit range has been split in two for the new generation. Custom is essentially the one-tonne option. The second model – yet to be launched – is the larger version for those who need much longer-wheelbase and/or high-roof cargo carriers.
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radiator September 2013
Words: David Linklater Photos supplied
A sports car it’s not – but then some bits are quite similar. > WHAT’S IT LIKE TO DRIVE? Great, actually. Custom comes with a variety of engine outputs from the factory and Ford New Zealand has chosen the most powerful. The 2.2-litre turbo makes an impressive 114kW/385Nm and is matched to a six-speed manual transmission. A sports car it’s not – but then some bits are quite similar. With the gearlever mounted up on the dashboard, the shift is right next to the steering wheel, just as it would be in a low-slung roadster, where you sit low and the gearlever is high on the console. Not convinced? Understandable. The diesel engine is sprightly though, the steering good and the (unladen) chassis remarkably responsive. The Custom comes with the full suite of active safety equipment you’d expect on a passenger car (traction and stability control, for example) and even a touch of the exotic: like torque vectoring, which apportions power between the driven wheels to maximise traction out of tight corners. It’s the sort of technology that not so long ago was the preserve of premium makers like Porsche, although you get it on a Fiesta ST now. Which might explain its presence here. Low running costs are paramount with vans and the Custom returns 6.6 litres per 100km, thanks to eco-friendly features like stop-start and regenerative braking.
stats
> IS IT EASY TO LIVE WITH?
FORD TRANSIT CUSTOM
Depends what you want from a van. In terms of load space it’ll come down to numbers, such as the Custom’s 2.9-metre wheelbase, 5.95 cubic-metre cargo volume and 1170kg payload. Up front, it’s fantastic. The cabin has three-abreast seating and the dashboard looks like an upscaled version of the Ford Fiesta: same angular shapes and mobile-phoneinspired switchgear for the multimedia. Custom also has Ford’s Sync voice control system. It’s only a generation-one setup so nowhere near as sophisticated as that in a Focus, but it’s still an intuitive and practical technology once you master the basic commands.
> SHOULD I BUY ONE? Well, I should think so. The Transit brand is legendary anyway, so fans of the Blue Oval won’t need too much convincing. The rest might well be swayed by the Custom’s high style, car-like cabin and engaging powertrain. It’s fun, whether you’re carrying anything or not…
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radiator September 2013
Base price: $49,490. Powertrain and performance: 2.2-litre turbo-diesel four, 114kW/385Nm, 6-speed manual, front-drive, Combined economy 6.6 litres per 100km. Vital statistics: 4973mm long, 1974mm high, kerb weight 1730kg, load space (SAE) 5.95 cubic metres, fuel tank 80 litres. + We like: Style, car-like cabin, engaging powertrain. - We don’t like: Having to ask for stripes and alloys as extras. A Custom deserves them as standard. How it rates: 9/10
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Safari ends up off track
WoF woes
Malcolm Whinham MTA Training Facilitator
A regular event in the WoF world seems to be when a workshop gets a vehicle in for one reason or another, which is obviously not up to the appropriate standard but has a recently issued WoF on the windscreen. The question arises of, “what to do”? A few weeks ago an MTA member contacted MTA with a tale of woe regarding a Nissan Safari which one of their customers had purchased a few days earlier and which was now in for a service. As soon as the vehicle was driven into the workshop, it was obvious that there were some serious corrosion issues; this concern was further confirmed when the vehicle was put onto a hoist. The damage was too extensive to list here, but major instances included holes in the roof immediately next to the top of the windscreen and obvious signs of water getting into the vehicle through this damage. Both rear seat belt anchorages, which are in the wheel arches, had corroded out and had been glued in place with RTV and then had dirt smeared on them to disguise the ‘repair’ and finally the right front cab mounting onto the chassis had completely vanished, corroded or dissolved! The concern for the member was what to do? His first course of action was to call MTA and seek some advice. This resulted in my visiting their premises to inspect the vehicle and to discuss an appropriate course of action as it was obvious that the purchaser had been seriously taken advantage of. A look on Car Jam, which proved to be quite revealing, plus some photographs seemed to be a good place to start, followed by a call to the issuing organisation.
Rust along the cab adjacent to the windscreen.
Rear seat belt anchorage in the wheel arch. The new owner of the vehicle was then contacted and asked to take it into the issuing authority. She did this meaning the business owner was able to see for himself that the condition of the vehicle was indeed very much below the acceptable WoF standard. Duct tape and RTV used to cover rust holes.
Corroded cab to chassis mount.
The owner of the business was initially disbelieving of the problem and suggested that there must be a mistake, however a WoF label number plus some emailed photos was enough to convince him that there was a major problem. The date on the sticker added a clue to what had happened; it was dated and entered onto the WoF Online System on a Sunday! Fortunately, from this point on, the owner of the issuing business took ownership of the problem and spoke to one of his staff who had been in the workshop at the weekend to do a “perk job for a mate”.
To cut a long story short, the deal was unwound. The vehicle was inspected again, and entered into the WoF Online system as a Fail. The purchaser got her money back, the business owners who had found the problem gained credibility with their customer, the industry in general and with the authorities for acting promptly and in a responsible manner as did the owner of the issuing authority. The staff member who had written out the WoF lost his access to the workshop out of hours and was taken off WoF duties at work. Although there were other courses of action available, the actions taken in this instance proved to be quick and effective. NZTA were advised at the time, and were supportive of the planned course of action MTA suggests that if you or your staff find a vehicle which has an obvious fault that has been missed during a recent WoF inspection, your first course of action is to contact the manager of the issuing organisation. If you are not able to do this, a call to the MTA mediation line is the next option and finally contacting your local NZTA representative. Keep in mind that the WoF legislation requires that the vehicle is “safe to operate under normal conditions of use” and that issuing a WoF to an unsafe or non-compliant vehicle could have serious consequences for your business and your staff.
For further information on WoF issues, refer to Alan Barr's Mediation column on page 30 of this issue of Radiator
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radiator September 2013
Warrant of Fitness
mediation
issue liability
Alan Barr
MTA Mediation Advisor
As you will see in Malcolm Whinham’s WoF Woes column on page 29, inspections can cause problems for issuers soon after. Members often call us to say they have been approached by a buyer whose vehicle was issued with a WoF by them that another inspector thought should not have been issued. Buyers make the misjudgement of accepting a newly issued WoF as their pre-purchase inspection. This is a common occurrence and the conditions surrounding this are provided for consumers on the reverse of the MTA WoF inspection sheet. Despite that information, buyers sometimes claim a financial disadvantage as they believe the repair they are facing should have been the responsibility of the vehicle seller had the member failed the vehicle at inspection.
Customer problems, or problem customers? One solution: Call MTA’s Mediation Service – another benefit of being an MTA member
The key issue here is whether the WoF provider owes a duty of care to subsequent purchasers. In this case the law is not clear that they do; similarly is it not clear that they do not. As this issue has never been legally tested, it remains a grey area. Until there is a definitive judgement from the High Court or even the Court of Appeal, this aspect will remain uncertain. There is other legislation, including Fair Trading Act exposure, but the extent of these risks has never been established. Given the costs involved in litigation, it may be some time before the benefit of that sort of definitive judgement is established. Cases of this type, based on buyer financial disadvantage tested in a Disputes Tribunal forum, are usually dismissed for two reasons. Firstly it’s because there is no contract between the applicant (buyer) and the issuer. Secondly, there was no subsequent damage arising from the issuer’s perceived negligence. For these reasons, the matter falls outside of the Disputes Tribunal jurisdiction. Had damage to property or harm to a person resulted from the issuer’s negligence, that would be a different matter and could be heard. As there usually isn’t, applicants wishing to pursue their claim are advised to do so in some other forum, like the District Court. In view of the relative
cost in question, such pursuit cannot be justified. If MTA is involved, we encourage members to seek pragmatic settlements before cases get to the Disputes Tribunal. If you can involve all parties you may be able to persuade the seller to ‘unwind’ the sale, putting everyone back in their original positions. Every case will be different – just think your way through yours carefully. We think such settlement will avoid both legal costs and business risk associated with owner instigated complaints to NZTA. If you are challenged, we recommend you proactively seek advice from your local NZTA manager. This is particularly important if you can’t access the vehicle and you think the new owners or those providing them a second opinion may have altered it to illustrate their subject of complaint. Remember, for NZTA to support a consumer complaint, they have to be satisfied that the issue is representative of what you would have been presented with at the time of your inspection. Every challenge is different but it is essential to deal with them as soon as you are made aware. Get advice early and call the Mediation team on 0508 682 633 to discuss your particular situation.
MTA Gift Cards:
Now with $20 minimum load value! Members and consumers have spoken.
We’ve listened – and dropped the minimum load value on MTA Gift Cards to $20. You still get a 3 percent commission on all cards sold, with values ranging from $20 to $500.
Customers can use them with MTA Members all across New Zealand – at 820 service stations (across all brands), 1316 repairers, 85 Vehicle testing stations and 185 dealers. 30 •
radiator September 2013
For more information, email Aaron Brooker : aaron.brooker@mta.org.nz or phone 04 381 8823.
mediation
The original CIN I’ve mentioned in previous articles the importance of the Consumer Information Notice (CIN) and the possible outcome if it isn’t given to the customer. However many inquiries we receive from members are in relation to how it should be completed and displayed. Some of the more common myths about the CIN are:
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New vehicles don’t require a CIN. Correct – only used or registered vehicles do. For clarity, a demonstrator or “prereg” is a used vehicle irrespective of how many kilometres it has travelled or how recently it was registered. The CIN must be displayed in online advertisements. Incorrect – however the CIN must be displayed at all points of sale. If the vehicle is for sale by online auction the sale can be completed online so the CIN must be displayed in the auction listing. A standard online listing doesn’t require a CIN be displayed in the listing as the sale cannot be completed without the purchaser contacting you. The CIN can’t be corrected. Incorrect. If the sale price is different to the price originally displayed on the car, this should be corrected and initialled by the purchaser and seller. The same goes for registration and WoF details – these should be updated on the original CIN. A new CIN card should not be produced, instead all changes should be made to the CIN that the customer first saw. Trucks and trailers don’t need a CIN. Correct. The Motor Vehicle Sales Act 2003 (MVSA) states a motor vehicle is “a road vehicle that is drawn or propelled by mechanical power and is of a kind ordinarily acquired by consumers for personal, domestic or household use.” A truck is not considered a motor vehicle under the MVSA. Trailers are specifically excluded.
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A camper van doesn’t require a CIN. Incorrect. See previous – the common belief is they are exempt due to their weight and origins (a truck), however their end use is of a personal or domestic nature and therefore included in the MVSA.
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Scooters don’t require a CIN. Correct – if they are under 60cc engine capacity. It is however highly recommended you supply one as it is protection from misrepresentation for both yourself as well as the purchasers.
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You can use your own form. Incorrect. Section 27 of the Fair Trading Act 1986 (FTA) defines consumer standards and it must be in the manner prescribed with the Important Information on the back and be signed by both parties.
Julian McMullan MTA Mediation Advisor
Consumer Information Notice (The supplier must complete all relevant sections of this notice)
Motor vehicle trader registration number
Name, address, and contact information of the supplier must be shown here.
SALE INFORMATION
Cash price
Security interest*
(including GST, registration, and licensing)
There is a security interest over this vehicle registered on the Personal Property Securities Register:
Yes
No
Warning: A security interest means that this vehicle could be security for a loan and could be repossessed. You should check the back of this notice for information about the Personal Property Securities Register.
Vehicle year*
Make and model
Engine capacity
Actual distance vehicle has travelled*
Radio receiver capability*
Vehicle Identification Number or Chassis Number
Can receive 88 to 108 MHz without use of a band expander:
Yes
No
Yes
No
Yes
No
Warrant or Certificate of Fitness expiry date
Warrant or Certificate of Fitness Vehicle licence
Vehicle licence expiry date
Registered vehicle* Yes
No
Registration plate number
Year first registered in NZ
Road user charges apply*
Operating fuel type
Yes
Re-registered vehicle* Yes
(If not registered, state “not registered”)
No
Outstanding road user charges*
No
Yes
No
INFORMATION ABOUT USED IMPORTED VEHICLES
Year first registered overseas
Country where last registered
Imported as damaged vehicle* Yes
No
If you buy this motor vehicle, the trader MUST give you a copy of this notice to keep.
Trader confirmation
Buyer confirmation
I (name of trader) have supplied to the buyer a copy or electronic version of this notice, including a copy of the information on the back of this notice.
I (name of buyer) have received a copy or electronic version of this notice, including a copy of the information on the back of this notice.
Trader signature:
Buyer signature:
Date:
Date:
* SEE OVER FOR FURTHER INFORMATION
A few other quick tips on filling out the CIN: Cash Price – must be a dollar figure (or “for sale by auction”), it must include any on road costs (not +ORC). Actual distance vehicle has travelled – if you are sceptical or not sure, use the second clause in relation to odometer readings on the back of the CIN. Don’t include the odometer reading as well. If you represent it, you are promising it’s correct. If you want some horror stories, call the Mediation Centre, they don’t end well. Operating fuel type – typing petrol here leaves you pretty open to claims on a detonated engine in the future, if you know the car requires 95 or 98 octane fuel, write it in. Road user charges apply – I don’t think I need to explain here what would happen if you missed this box and a clever customer decided not to pay them for a year or two. And a last tip that catches traders out – you keep a copy, the purchaser gets the original CIN.
MTA Facebook page – update MTA’s corporate Facebook page, launched on 2 July 2013, has set off to a good start. With over 500 likes (and growing steadily), we are successfully reaching a broad audience throughout New Zealand on a daily basis. Already we’ve shared motoring tips, an update about changes to the WoF frequency, some interesting links and videos, information about MTA’s mediation service, as well as promoting MTA’s Apprentice of the Year competition and our Murph in Schools programme. We’ve also given away a couple of prizes to those interacting with us and sharing their thoughts on the page. We’re looking forward to continuing the conversation with the motoring public of New Zealand, and encourage you to join us too. After all, it’s another great way to reach your customers and peers, and engage with them in an open conversation.
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www.facebook.com/motortradeassociation radiator September 2013
advocate Dougal Morrison
This column gives an update about law changes, MTA lobbying and training activities.
email dougal.morrison@mta.org.nz or Tel 04 381 8816.
Law Changes
Consultation
Warrant of Fitness (WoF) frequency changes
Certificate of Fitness (CoF) testing regime review
The Minister of Transport has signed the Land Transport Compliance Rule Amendment 2013 (No 2) which introduces changes to vehicle inspection frequency.
NZTA has formed three reference groups comprising businesses undertaking heavy vehicle inspection and repair and relevant associations, to consider opening up the CoF market to heavy repairers. So far, they’ve found:
The WoF frequency reduction phase in was originally planned to begin from 1 October 2013 for 2004 to 2008 vehicles but MTA and other industry groups strongly advocated this be delayed until 1 April 2014 to give industry time to adopt to the reduction in inspections. Government listened, and delayed the programme to 1 January 2014. For full details of the changes, and when they take effect, turn to page 39 of this month’s Radiator. Until 1 July 2014 there will be no noticeable reduction in WoFs. It is from July 2014 onward that WoF numbers will reduce. The extent of this for each business will be dependent on the age of vehicles worked on. Vehicles first registered prior to 2000 will retain a six month WoF and MTA believe this decision by Government was influenced by work put in by industry that strongly indicated safety would be affected by a reduction in the number of WoFs.
Many heavy vehicle repairers are not in favour of undertaking CoF inspection themselves. Even fully equipped repairers would prefer to use an independent CoF inspector.
• The key issue is the time taken to get a CoF. This has
been exacerbated by the operator rating system and the pre-CoF inspection requested by operators before their final CoF with the object of improving their Operator Rating System (ORS) score. NZTA requires that pre-CoF and CoF inspections are kept separate.
• The setup cost of undertaking CoFs by heavy repairers is likely to be higher than originally expected.
• Opening up the CoF market could improve services
in more-populous areas but competition could have a detrimental effect, or increased cost, for rural CoF services.
Targeted Review of Qualifications
2014 7
MTA will be working with NZ Transport Agency (NZTA) to strongly promote the legal requirement that vehicles have a WoF no older than 30 days at the time of sale. We have also developed a checksheet to review key safety areas between WoFs, which is available through the stationery portal on MTA’s website. We have also reviewed the existing MTA prepurchase checksheet, so it’s friendlier as a tool for repairer members and more informative for the public.
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radiator September 2013
The Motor Industry Training Organisation (MITO) submitted the application for Approval to Develop automotive qualifications to the New Zealand Qualification Authority (NZQA) in December 2012. After considerable feedback from industry that further consultation is required on the proposed automotive light and heavy qualifications, NZQA’s evaluation of MITO’s application has been put on hold. The Light and Heavy Vehicle Working Groups have been reconvened to further consider what qualifications are required for the industry. MITO is seeking feedback from a broader range of organisations, including the Defence Force and a greater number of polytechnics. They have also sought input from a broader range of specialist sectors including auto air conditioning and auto electrical. As a member of the Governance Group, I have been asked to Chair the Light Vehicle Working Group, which now has broader industry representation.
Transport Services Licensing As part of the Vehicle Licensing Reform programme, NZTA and Ministry of Transport (MoT) are currently reviewing the Transport Services Licensing (TSL) regime. MTA has
recently had discussions with NZTA officials. They advised that the review is considering:
• whether some operators should be removed from the
“Goods Services” licensing regime because they carry their own goods and do not present a safety risk
• improving provisions for entry, management and exiting TSL operators
• whether fees and charges need to be updates to reflect regulatory effort.
It is highly likely that TSL will be retained, with some minor modifications, which is supported by MTA tow operators. The big challenge for NZTA is managing and exiting the poor transport operators. A draft cabinet paper will be prepared by MoT in September 2013, with decisions likely by the end of the year.
‘Damaged As Import’ Flag This issue was the subject of a series of articles in the Auckland Herald in late July 2013. Following those articles the Minister of Consumer Affairs has signalled his interest in looking into in whether the so called ‘damage Flag’ is being interpreted correctly by consumers. For example if damage is not indicated, it may not be correct to say the vehicle has never been damaged. Consumer officials, in the Ministry of Business, Innovation and Employment, have had informal discussions with MTA to consider the issues. There is a possibility these discussions will lead to a more formal review.
NZTA’s Flood and Fire Damaged Vehicle List The NZTA website provides a list of vehicles, including ex-NZ new and used imports which have been identified as having suffered flood or fire damage at some point in their lives. The list is a useful reference source for dealers. Motochek, Motorweb and other similar providers access the NZTA list when compiling their respective consumer/ trade VIR reports. However, their access is not online and they rely on a weekly update from NZTA. This is adequate for most purposes. However when considering very recent imports, dealers may be wise to access the NZTA list directly via the NZTA website. The growing incidence of damaged used imports ex-Australia is highlighting the need to be vigilant – don’t get caught out buying a damaged vehicle. The NZTA flood and fire damaged list can be accessed via the following link: http://www.nzta.govt. nz/vehicle/importing/step-three/water.html. NZTA have indicated their intention to build a second list which will record accident damage write-offs ex-Australia.
advocacy We go in to bat on your behalf yet another benefit of being an MTA member 33 •
radiator September 2013
Initiatives 2013 Service Station Industry Survey is now open MTA’s annual industry survey has become widely anticipated by industry. Make sure you participate in this and encourage others in your network to do the same. Like any survey, its relevance and validity relies on drawing the most responses. The closing date is Friday 13 September 2013. If you have not received a copy, please email rochelle.reddish@mta.org.nz.
Tyrewise MTA has been instrumental in getting funding from the Waste Minimisation Fund to develop a tyre recycling scheme. Industry players set up a working group to develop a tyre recycling initiative, known as Tyrewise, in March 2012. An application has been made to the Minister for the Environment to get tyres considered as a “Priority Product” under the Waste Minimisation Act, meaning a fee can be applied to tyres at the border, to enable collection across the country at no cost to tyre retailers. The group aims to process over 90 percent of tyres – making them a resource, rather than going to landfill as most do now.
MTA Vehicle Service Book Updated The MTA Vehicle Service booklet has been revised, refreshed, and is now available to order. Members can include the book in customers’ vehicles as a record of servicing completed and future servicing required. This is particularly useful for used import vehicles, which may not have vehicle servicing information, or might be written in Japanese. For more details on this, check page 8 of this issue of Radiator.
Training Service station training being trialled MTA staff recently engaged with a provider of safety and security training courses to coordinate a pilot course for MTA service station members. Pending the pilot being completed successfully in mid-September and feedback from members on it, options for ongoing course delivery for MTA members will be considered.
Southland Branch Industry Update MTA Dealer Services and Mediation Manager Tony Everett gave an update to members in Invercargill last month on: • vehicle market overview • mediation processes and common pitfalls • recent and pending law changes • consumer law • anti money laundering • WoF frequency. Tony will be carrying out more of these briefings in the coming months, in other centres – for more details on how to get the latest industry information, contact: tony.everett@mta.org.nz
Industry Comment
Carl O’Shea
CEO, Crombie Lockwood The name Crombie Lockwood is unusual. Tell us about the origins of the business? Like many nationally successful businesses we started out in the provinces – in Napier and Palmerston North to be exact. Our founder and first CEO was Colin Crombie who opened the first office in 1978 as Crombie Stephens and five years later Steve Lockwood bought out Peter Stephens and opened our second office in Palmerston North. I didn’t come along until 1987 when I started our Wellington business but by then we figured we had enough names in the letterhead so Crombie Lockwood we stayed.
They are often used in the same phrase, but what’s the difference between an insurance broker and an insurance company? An insurance company, also known as underwriters or insurers, are the people who carry the risk for the property or liability that is being covered. Since the Canterbury earthquakes you may also have heard of reinsurers and they are the companies that insure the insurers. Our role, as an insurance broker, is to analyse a client’s needs (not just what they think they want) and make sure they get the most responsive and best value insurance protection to meet their true needs. In fact we have what we call an Aspiration for our clients. This is the level of service we strive for every day: “Through commitment to understand your business we will earn your trust and through proactive advice and solutions position you to financially survive any insurable event.” It’s a tall order but one that I know we will demonstrate to MTA members as we get to know them.
How have you seen the attitude to insurance change since Christchurch? Yes. People now realise that ‘the worst can happen’. Sadly they will soon forget that and all the stories about why people’s insurances weren’t right or weren’t adequate. They’ll just go back to trying to save money rather than cover themselves properly. For businesses especially the message has to be unmistakeable – get the cover you need to adequately protect your business and family not just the cover you think you can get away with. We call it insurance that works at claim time.
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radiator September 2013
Where is the real value to a customer in the wider insurance process? Business continuity. That’s what it’s all about. There’s a bunch of other stuff like security for bank loans and not being out of pocket but the bottom line is business continuity. More than half of all businesses that suffer a major loss never reopen! You spend a lifetime building up your business. Why would you expose yourself, your business partner, your staff and your family to losing everything when insurance is so easy to arrange in New Zealand?
Tell us about the insurance warrant you put your existing and potential clients through? As brokers we need to continually review our client’s insurance requirements to ensure we are providing the best service available to them and have identified all the risk exposures they may face. The first step we take to establish the correct insurance programme is to assess our clients’ exposures using the RedLine discovery process (it’s like our WOF check). This provides the information for us to act on, forming the foundation for our client’s protection plan. Our clients fully understand what we are establishing in the discovery and risk exposure process and often comment with surprise on the depth of data and information we seek. The primary purpose of our annual review is to identify any changes in the risks under contract, new business activities which may arise from time to time, new business strategies planned for the year ahead and to identify changes in the levels of cover required. The Crombie Lockwood discovery document also provides declarations for the relevant underwriters to ensure that where changes have been identified, we protect our clients from the dangers of nondisclosure.
That sounds very comprehensive. What are some of the things that you have identified as a result?
Enjoying a drive day at Boom Rock but no Morrie Thou’s in sight
Typically we find gaps in the cover such as inadequate stock limits, insufficient time periods under loss of profits policies and contracts requiring specified levels of liability cover that are not put in place. The motor industry has particular insurance risk exposures and in most cases these are not included in the policy programmes we see; particularly in the area of liability. Most motor trade businesses will usually have cover for the work they do on vehicles but that is not the key exposure many members face. Our Red Line discovery process identifies all issues.
How would an MTA member notice the difference when dealing with Crombie Lockwood? We stick around and do the whole job. As I said earlier we have an industry leading process to ensure we WOF check our clients every time. But maybe more importantly we do it face-to-face. We have 22 offices around the country so we’re just down the road and we have a national office that provides specialised skills and services to our team on the road. And when the rubber hits the road, you will also appreciate that we’re the only broker in New Zealand with such a large, client championing claims team. More than one in ten Crombie Lockwood people are working on client claims – every day.
Your business must see some strange things that are insured. Can you tell us about some of the more bizarre items you have arranged cover for? Yes people certainly insure bizarre items and situations – surprising when so many don’t bother insuring what they should. Anyway the risks we have protected at Crombie Lockwood ranges from water buffalo and baby doll sheep (don’t ask me) to King Kong and Weta Productions. We’ve covered five trained swans as talent in a television commercial, the liabilities involved for an elephant walking up Queen Street, the star climber in a recent Everest film, the ducks in the movie Love Birds and we are in the midst of placing cover for Sirocco, DoC’s travelling Kakapo, which of course sits perfectly with our ‘natural cover’ promise.
What will the insurance environment in New Zealand look like years from now? Basically the concept will remain the same, paying a small amount to have collective benefits for individual losses. However the delivery mechanisms and structure of the insurance policies will inevitably evolve. And of course in the digital future you will need actual cover for virtual losses.
Official communications supplier to the MTA
Take advantage of special rates as an MTA member. 35 •
radiator September 2013
We hear you appreciate nice vehicles. Tell us about some of those you have owned and what you liked about them? My first great love was a Morris 1000 which I fully rebuilt in the garage I poured gas at after school and on the weekends. What’s not to like about a Morrie thou? Because I’m into fishing and tramping I have a Nissan Navarra ute to get me into my hunting shack on the East Coast whenever I can. Then at the other end of the scale I have a passion for Aston Martins and have just placed an order to upgrade into what will be the third one I’ve owned. They are fantastic vehicles.
bodywork Bob McCoy MTA Collision Repair Manager
Collision Repair Update
High tech adhesives market growth New high-tech adhesives are currently top of the list for carmakers as they look for ways to make cars lighter and tougher, according to a story by Reuters.
but industry experts forecast the amount of glue used in an average car may grow by at least a third over the next 5-10 years, from around 15 kilograms now.
For suppliers like Henkel, PPG and Atlas Copco, providing tailormade adhesives that can absorb the shock of a crash and reduce rattles allows them to push for higher prices – and make more profits.
Audi's top-of-the-line R8, for example, is in large part fastened by advanced structural adhesives which have also been developed to withstand racetrack vibrations and fierce heat.
Stricter emissions rules in major markets mean cars have to become more fuel-efficient. Car companies are therefore using more aluminum and exotic composites. That puts industrial adhesives – made up of chemicals like the polyolefins that are used in Croc shoes and tennis racket strings – at the top of carmakers' shopping lists. Henkel, the world's largest maker of adhesives, is selling off divisions that deal with simpler industrial glues to focus on more complex and specialist products used on cars, airplanes or mobile phones. The 2-3 billion-euro market for automotive adhesives currently accounts for less than 10 percent of the global adhesives market,
"We don't buy glues off the peg but work very closely together with manufacturers on complex specific adhesive applications," said Michael Zuern, head of materials engineering at MercedesBenz. Because adhesive bonding increases the stiffness of the body shell, the vehicle can better absorb bumps and in-car noise is dampened, Mercedes' Zuern told Reuters. It also makes for better handling and helps absorb the impact of a crash. GM's new CTS sedan uses 118 metres of structural adhesives, more than the length of a soccer field, helping to make the vehicle 40 percent stiffer than its predecessor. Source: Reuters
Taking shortcuts –
there are always consequences Recently one of New Zealand’s larger insurance companies advised that as a result of an investigation into repair irregularities, they had cancelled the “Approved Repairer” status of one of their preferred collision repairers. It was alleged that the repair method agreed to between the insurer and repairer had not been used; a subsequent invoice submitted in support of the completed repairs indicated that it had. This business has been identified as an MTA collision repair member and has been asked to provide an explanation about the allegations raised by the insurer, which, if substantiated, would be in breach of the MTA Code of Ethics and Repairer Standards. As the repairer has failed to respond to MTA’s request or provide a plausible explanation, this has resulted in their membership being cancelled with an instruction that they remove any references to MTA from their business. It is important that if you want to deviate from the repair method which you have agreed to with the assessor, you make contact with them to discuss it before going ahead with the work.
36 •
radiator September 2013
Profile
RO Jones Panelbeaters 2004 Ltd Christchurch Your name: Scott Jefcoate What attracted you to the industry? I liked repairing vehicles. How long have you been in business? I’ve been panel beating for 16 years, and have owned my own business for over 5 years. How many staff do you employ? 12-14 How long have you been a member of MTA? About two years. What do you see as the benefits of being an MTA member? Belonging to an industry recognised brand. What do you like about the collision repair industry? Vehicles don’t have parents so it means they can all be fixed. If you could, what would you change in the industry? I’d like to see the hourly rates set out by the insurance companies raised to suit industry standards. What is the most unusual vehicle you have repaired? A monster quad bike. What is your favourite holiday destination? Gold Coast, Australia. Who do you most admire and why? My wife, for putting up with me.
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radiator September 2013
RALI’s Demonstration Van gets a complete fit out for water. After the official launch of Cromax Pro at this year’s CRA 100th Conference, Resene Automotive & Light Industrial fully equipped their Training Van with 3rd Generation water (3WB) Cromax Pro in preparation for its New Zealand Road Show.
PRO FESSIONAL PRO DUCTIVITY
Besides the Cromax Pro Mixing bank with a complete Tint System, included was also Sartorius Mixing Scales linked to a computer-based formula recovery system, all powered on a workbench with units holding vital equipment to complete all 3WB demonstrations and future in-shop training. Together with the reliable ChromaVision® Spectrophotometer, the mobile paint shop to showcase speed and productivity with Water is here. Simple mixing and low viscosity make Cromax® Pro Basecoat an easy and time-saving paint to prepare, filter and apply. Low viscosity means finer atomisation for a superior overspray melt-in, while providing excellent mottling control and blending. Versatile in a range of applications; perfect
PRO CESS PRO FIT PRO ACTIVE Advanced technology designed to improve productivity. 1.5 coats applied wet-on-wet it speeds up your processes.
A powered workbench with Sartorius Mixing Scales and computer, together with the ChromaVision® Spectrophotometer, the mobile paint shop is equipped to complete 3WB demonstrations and in-shop training
for everything from spot repairs to complete re-sprays, while VOC compliant primers and clears complete the best practice process for enhanced profitability in any business. Equipment such as the designated Waterborne and Clearcoat Spray Guns from Sagola with air lines, blowers and portable filters, as well as the accompanying QR-20 Drester Quick Rinse Gun Wash machine means that the Training Van can formulate, mix and spray Cromax Pro independently on any vehicle in any suitable business throughout NZ. Ancillaries such as the “Innovative Paint Preparation Cart”, 3M’s PPS Sun Gun, PPS Dispenser with lids and liners; Gun Cleaning Kit, solvent and water collection units have also been installed to support the best practice use of Cromax Pro.
www.cromaxpro.co.nz 0800 108 008 38 •
radiator September 2013
Space for important health & safety items such as First Aid Kit, Eyewash Station, Spill Response Kit, DuPont Overalls, Gloves, 3M Dust masks, eye and ear protection, as well as Paint buster hand cleaner and the new 3M Full Face Air-fed mask rounded out the compliancy equipment for any paint system, and fits with the future of NZ’s only 3rd generation Waterborne paint system to drive safety and profit.
Thatcham signs deal to provide repair procedures to Australian market Thatcham Research in the UK has signed a five year deal with Australian insurer Suncorp Group to provide repair methods and times to vehicle repairers and insurance assessors across Australia and New Zealand. Suncorp is investing heavily in Thatcham's data product, escribe, a source of vehicle repair data that is currently in use by 89 percent of the insurers' approved repair network. The system will provide subscribers with estimation information, model-specific repair methods and critical safety data across a range of platforms including PCs, smart phones and tablets. "With increasing vehicle complexity, it's imperative that technicians are able to access fully researched methods and times to perform repairs at the highest levels of quality and efficiency," said Suncorp National Industry Relations Manager, Rob Bartlett. In this exciting deal, Suncorp will fund the development of local vehicle content in escribe, with Thatcham researching and adding seven new Australian cars in the first year and a further five in each subsequent year up to a total of 27. This is the first time that Thatcham has provided its repair expertise internationally. The impact is expected to be especially significant as Suncorp will be making escribe available to all repairers, assessors and training organisations across Australia and New Zealand, not just to those who are aligned with the group. Source: Collisionweek News Note: With Suncorp owning Vero and AA Insurance hopefully we will start to see realistic repair times flowing into our industry in New Zealand.
MTA in the Media The government has announced will phase in the changes decided on during its Vehicle Licensing Reform over six month period starting early 2014. MTA has welcomed the announcement, saying it provided certainty to industry about exactly when the changes were taking place, and provides a smoother transition to the new system. Industry and government representatives have been working together to set up a workable schedule. From 1 January 2014, light vehicles first registered anywhere between 2004 and 2008 will move to annual, rather than six-monthly, WoF inspections. They will remain on annual inspections after that. From 1 July 2014, annual inspections will apply for all light vehicles first registered anywhere on or after 1 January 2000. In addition, from this date, new vehicles will have an initial inspection, another at three years, then annual inspections thereafter. Following the first VLR announcement, in April the government suggested it was bringing the introduction date forward to October 2013 – nine months’ earlier than previously mentioned. MTA said rushing into this would put pressure on the officials responsible for making it happen, and questioned whether the administrative changes could be delivered done effectively. We also said this would reduce work levels and disrupt workflow for vehicle inspectors. Instead, MTA suggested phasing the changes in, giving officials more time and spreading the work out across the year. Greg Murphy’s visits to schools to promote road safety in the south of the South Island received positive coverage from local media.
AUTO & TRUCK
SPRAY BOOTHS PREPARATION BAYS
Vehicles in all sectors continue to sell well across the market in July, with used imported cars having a particularly buoyant month – their strongest in almost six years. For detailed analysis figures, and which models and brands were the fastest movers, check out our detailed market overview on pages 44- 47. While winter is not traditionally a strong time of the year for on-road motorcycles, sales in July put paid to that theory, for July at least. Spurred on by reaction to record fuel prices, on-road motorcycle sales of 497 units were 137 units (38 percent) ahead of July 2012, and 79 units (19 percent) ahead of June 2013. The growth was shared between both scooters and larger displacement models.
SALES, SALES,SERVICE SERVICE&&REPAIR REPAIR Phone: 827 2235 P: 09 827092235 Email: Email: sales@cbglimited.co.nz sales@cbglimited.co.nz www.cbglimited.co.nz www.cbglimited.co.nz 39 •
radiator September 2013
Sales of 9,629 used import cars was up 2,988 units (45 percent) compared to July 2012, and up 1,767 units (22 percent) over June 2013. For the year to date, used imported car sales are up 10,970 units (25 percent). Used import commercial vehicles also enjoyed a buoyant month. Sales of 527 units were 251 units (91 percent) ahead of July 2012 and up 65 units (14 percent) over June 2013. Year to date, used import commercials are up 1,316 units (69 percent).
Are old cars
Nick Mason
collectable? Story: David Linklater, Pics supplied
The answer has to be yes of course, because so many people do and there is a global industry built around it. But it’s also got to be a qualified yes, because it depends on how you define “collectable”. If it’s a synonym for valuable, then you’re entering into a complex and risky world of classic-car investment – one in which even the so-called experts can’t always claim to predict what’s hot and what’s not. Or perhaps “collectable” just means you have a desire to preserve a particular type or genre of old car though personal passion, with no real expectation of financial gain. Indeed, perhaps you’d never consider selling your classic irrespective of value. It’s notable how many international celebrities are involved in the world of big-money car collecting. That’s partly because they are celebrities and so we hear about their hobby. If they are big celebrities they also have big money to fund their hobby. But it might also be because celebrities understand the fleeting nature of fame. They know that classic cars have their ups and downs over the decades, in terms of being desirable and valuable. They also know that achieving financial success in any sphere of interest is often a by product of following a passion with total commitment – not the goal that was in mind to begin with. Consider the case of Pink Floyd drummer Nick Mason and the Ferrari 250 GTO. Mason is a long-time car enthusiast and has a massive classic car collection, but the GTO is the one that most often comes up in interviews as being his favourite.If you had to choose a picture of a car to go next to the world “collectable” in the dictionary, it would have to be the 250 GTO. It is arguably Ferrari’s most famous and beautiful car, as well as being painfully rare: just 39 examples made between 1962-64, as an homologation project for racing. Hence the name: Gran Turismo Omologata (GTO). Originally a US$18,000 machine, the GTO has skyrocketed in value over the past 50 years. But even though it’s as close to a sure thing as you can get in the world of classic-car investment, values have fluctuated to such an extent that you could easily have lost a fortune by buying and/or selling
40 •
radiator September 2013
a GTO at the wrong time. According to a 2002 article by classic-car broker Michael Sheenan in Sports Car Market magazine, the GTO depreciated quickly in the early 1970s, once its racing career had finished, with cars changing hands for less than US$10,000. They rose again in the late-1970s and then sharply in the 1980s: a GTO was worth around half-a-million mid-decade; one particular car was sold for US$1 million in 1986 and resold for US$4.2m two years later. The madness peaked in 1989 when another GTO sold for US$13.8m. Then values plummeted back down to around US$1m. The very car that was sold for $13.8m was moved on again for just US$2.7m two years later. By the mid1990s the 250 GTO was on the rise again. There we leave our expert Mr Sheenan, but as you might know values of this classic Ferrari have continued to increase over the last decade and one example built for British racing driver Stirling Moss was sold for US$35 million last year. With a car like the 250 GTO, so much depends on the provenance and the buyer. On paper, Nick Mason is sitting pretty. But only because he was fortunate to buy in early [1978] and he’s certainly never thought about selling his GTO. “It’s an
entrée into a pretty exclusive club and it makes me look quite clever,” Mason told the British Telegraph newspaper in 2011. “It’s an investment, although it was never bought for that. All of my cars that have become valuable I have bought with my heart and not my head. I overpaid for them or bought them when it seemed like a really idiotic thing to do.” Another famous (infamous?) car collector is American talk show host Jay Leno. He owns around 200 cars and claims never to have lost money on one. Many of his cars are priceless. But he’s not an investor. Leno wrote in Popular Mechanics in 2009: “I’ve always bought cars I really want to own. If you buy a car you like and it loses value, at least you still like it. Besides, even if the car’s value does go down a little, it will come back up at some point down the road.” Being passionate about exotics is one thing. But you need to have money to make money with those.Or indeed have money to even enjoy them. However, mainstream cars can be just as collectable (if not as valuable) to true car enthusiasts: they are also potentially even more interesting than exotics because they play such an important role in people’s lives. They, too, can be rare because as the years go by,
very few examples are genuinely cared for and numbers dwindle. Leno – master of the million-dollar machines – reckons some of the most collectible cars of the future will be those that are commonplace today. He argues cars like the firstgeneration Toyota Prius, Mazda MX-5 and even the much-maligned Hummer are future classics because they broke new ground when new and will bring back memories for those who owned or drove them. Or Smarts and Minis because they are “cute” and always will be: “those things don’t change”. Leno’s off-the-cuff assessment does echo the view of serious brokers. Like Paul Michaels, chairman of a company called Hexagon of Highgate in Britain, and a classic-car dealer/broker himself for more than 45 years. Michaels explained to the Telegraph newspaper this year what makes a classic: “I think that to be a classic a car must have a personality and that it must be sought after by kids in their formative years, so that when you look back at something old you fall in love with it.” So are old cars collectible? Yes, and if you want to know which affordable ones to invest in now, ask your children.
Another famous (infamous?) car collector is American talk show host Jay Leno. He owns around 200 cars and claims never to have lost money on one! He argues cars like the much-maligned Hummer (below) are future classics because they broke newground when new and will bring back memories for those who owned or drove them.
41 •
radiator September 2013
Creativity – no right brain will be left behind… An opinion piece by Deanna Riach, Registrar for Massey University’s Wellington Campus The Regus work-life index study published in July 2013 shows New Zealanders are happier to the tune of seven points on the global average when compared to other countries. In particular (not that we’re competitive!) we are happier than our counterparts in Australia and the United States. Why would these countries be important to single out? Because these countries produce great cars, and if we are feeling happier without creating
the Commodores, Falcons and Corvettes of the world, then we are doing exceptionally well indeed. Perhaps that’s because the creative nature of Kiwis helped to inspire and develop the Hulme Can-Am road racer! The 600bhp, 1,000kg supercar with its GM-sourced ‘LS7' V8 engine. Right from the onset, with their obviously good judgment in utilizing a Corvette engine, this atomic orange masterpiece deservedly excited even the most discerning petrol heads and made the big time by gaining huge accolades from the team at Top Gear, along with loads of unnecessary and largely unfunny sheep-jokes! The Hulme Supercars namesake, Denny Hulme was one of many inspirational Kiwi racers, who included such greats as Bruce McLaren and Chris Amon. When we also consider the success of Scott Dixon and the New Zealand A1 Grand Prix team, we are well placed to continue the tradition. So how does this fit in to the life of the Registrar at Massey University’s “Creative Campus”? Apple’s inspirational leader, the late Steve Jobs once said “Your work is going to fill a large
42 •
radiator September 2013
part of your life, and the only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do.” Working at Massey allows me to contribute in an environment that supports our ability to think differently, urging a culture of ‘connected’ creativity. Variety is the key. As a lover of American muscle cars, I can walk into my garage and smile like a five year old when I see our 2001 C5 Roadster and 2008 C6 Indianapolis Pace Car shining back at me.
The smell to me is better than any of the fancy perfumes for sale, although I’m not sure how commercially viable a woman’s perfume of polish, petrol and oil would be! Not only can I ‘talk cars’ with friends and family, I can work alongside academics, designers and creative minds who bring dreams to reality. As a Registrar, I can sit in meetings alongside some of New Zealand’s most inspiring minds. A great example of this is Professor Tony Parker. Not only is Tony a Professor of Industrial Design at Massey University, he is also the Chief Designer for the Hulme Supercar. While his amazing design of supercars definitely fits into the creative and inspiring category... unlike the Top Gear team, he’s not necessarily known for sheep jokes! For me, creativity is about combining the things that you love with environments that challenge, inspire and excite you, and I’m not alone in my thinking. A recent IBM poll of 1,500 CEO’s identified creativity as the No.1 ‘competitive edge’ of the future. Central to the changes that are taking place is the importance of creativity. As New Zealanders,
we have long celebrated our “#8 wire” abilities and “can do” attitude; we deservedly revel in our reputation for excellence and achievement disproportionate to our size. But if we truly wish to take our place on the global stage, we need to think bigger and draw on the view that our future depends on creativity being at the heart of everything we do. The necessity of human ingenuity and inventiveness is undisputed. If we are to thrive as a creative economy, we first need to value the benefits
of supporting a creative society. For me, the ability to connect and collaborate allows for a culture of creativity and inventiveness by encouraging creative thinking that has often proven to be transformational. Sir Ken Robinson said “We are all born with immense natural talents, but institutions tend to stifle them. By not encouraging risk-taking, we are education people out of their creative capacities”. A great idea can transcend politics, wars and economies. It can and will upset those holding onto the status quo. It does not forgive meritocracy and can never be un-thought. Our challenge as Kiwis on the global stage is to nurture and encourage our leading creative minds to gain the ability to step up to the issues where conventional thinking fails. Not only to think smart, but to act fast. But it’s not about creating more artists; it’s about creating a culture within our society that will support creative thinking that can solve 21st century problems. … and driving great cars!
Ads from 1963:
Blast from the past – ads from 50 years ago
We often look back at issues of Radiator and compare stories and points of discussion from the past with those of today. But this time we thought we’d look at something that has also appeared in Radiator throughout the life of the magazine: the advertising. It’s always there, and whether we take special notice of it or not, advertising is something that enters the subconscious. Here are a few wee gems from the September 1963 issue of Radiator we think you might enjoy. Some interesting points of comparison to today’s ads: Most of the ads from 1963 were in black and white (the odd one had one colour One wrong part can ruin it all. in it). The ads were hand crafted, using black and white photographs or hand drawn illustrations to demonstrate their product or service. Nowadays, advances in technology allow more freedom for advertisers when it comes to design, layout and printing. Images in today’s ads are mostly full colour, high definition photographs or computer generated illustrations, and most are retouched to perfection. Agencies are constantly pushing the boundaries and are becoming more creative in the way they draw comparisons to their product, or represent an idea.
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Commercial Vehicles
Ads from 2013:
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To find out how Shell Lubricants can design solutions to meet your needs, contact Orica Chemicals – New Zealand’s Shell Lubricants Distributor on 0800 673 375 or visit us at www.orica.co.nz.
*in tests against an API SG/CD mineral oil.
In the case of advertising – time, trends and technology may change, but the ideas and reasons behind them remain the same. A company has a product to sell, and Radiator’s readership represents the audience they want to sell their product to. And it will continue to do so for years to come.
Whoever said that print advertising is dead? 43 •
radiator September 2013
market overview
statistics
July
Tony Everett Dealer Services & Mediation Manager Ph: 04 381 8827
tony.everett@mta.org.nz or: 04 381 8833 rochelle.reddish@mta.org.nz
New Passenger Registrations July YTD 2011
8,000
2012
New market Market marches forward
2013
7,500 7,000
6768 new passenger registrations in July. Up 9 percent compared to July 2012. Down 10 percent from last month.
6,500 6,000 5,500
New Passenger market up 5 percent YTD compared to YTD 2012.
5,000 4,500
2632 commercial registrations in July. This is up 22 percent from July 2012. Down 17 percent from last month.
4,000 3,500 3,000
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Used vehicle market
Nov
New commerical market is up 25 percent YTD compared to YTD 2012.
Dec
Used Import Passenger Registrations July YTD
Leading vehicle sales boom
2011
12,000
2012
2013
10,000
9629 used passenger imports in July, this is up 45 from July 2012. Up 22 percent from last month.
8,000 6,000
The used import passenger market is up 25 percent YTD compared to YTD 2012
4,000
527 used import commercial registrations in July. This is up 91 percent from July 2012 and up 14 percent from last month.
2,000 0
Jan
Feb
Mar
2012
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Motorcycles
New Road Registered Motorcycles (>60cc, & <60cc) July YTD 2011
Apr
2013
Staying strong through winter
900 800
497 Motorcycle registrations for July. This is up 38 percent from July 2012 and up 19 percent from last month.
700 600 500
Over 60cc' market: 327 registrations. This is up 38 percent in contrast to July 2012. Under 60cc' market: 170 registrations in July. This is up 38 percent from July 2012.
400 300 200 100 0
44 â&#x20AC;˘
Jan
Feb
Mar
Apr
radiator September 2013
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
The Motorcycle market is up 22 percent YTD compared to YTD July 2012.
statistics
brought to you by
Top 10 new passenger registrations by brand Mth
% Chg YTD
Toyota
1158
8%
Holden
857
7%
Ford
604
10%
Mazda
569
8%
Hyundai
533
NC
Suzuki
405
5%
Volkswagen
307
31%
Mitsubishi
305
5%
Nissan
294
6%
Honda
231
1%
The top 10 brands make up 78 percent of the new passenger market. Toyota is holding 18 percent of the market YTD, Holden makes up 11 percent of the market YTD and Ford holds 8 percent of the market YTD. Other brands doing well YTD are: Ssangyong up 55 percent; Chrysler up 58 percent; Chery up 33 percent.
Top 10 used import registrations by model Mth
Demio and Swift switch places this month for first and second. Axela moves up from fourth to third. Demio and Swift also change places for most units sold YTD with Demio at 2571 units and Swift at 2550 units. Other models that had a good month include: Outlander up 312 percent; Auris up 185 percent; Avensis up 84 percent.
% Chg YTD
Demio
486
41%
Swift
460
83%
Axela
423
30%
Tiida
395
46%
Fit
327
60%
Atenza
290
5%
Legacy
284
NC
Corolla
276
18%
MPV
247
41%
Wish
222
99%
Top 10 motorcycle registrations by brand Mth
45 â&#x20AC;˘
% Chg YTD
Suzuki
75
15%
Honda
67
37%
Triumph
39
13%
Harley Davidson
34
19%
Yamaha
23
32%
Piaggio
22
83%
Kawasaki
21
5%
KTM
17
167%
BMW
17
77%
Hyosung
16
5%
radiator September 2013
There is a change in the top three with Suzuki first with 75 units, Honda second with 67 and Triumph third with 39. The top brands are looking strong YTD. Suzuki has sold 679 units, Honda has sold 549 units and Harley Davidson 293. Other Brands doing well YTD include: KTM up 167; Piaggio up 83 percent; BMW up 77 percent;
otorua 500% ellington 9 19% amaru 50%
Top three new models by segment
Top new models by segment
Light
Gisborne 2 100% Nelson 9 29% Dunedin SUV's are first with 2500 units in July. The small 15 15% sector is second with 1779 and light are third with
1261.
Swift
Yaris
239
226
101
Small
Corolla
Focus
Cruze
376
223
188
Medium
Mazda6
Camry
Mondeo
Large/upper
MPV
The top selling model this month is the Ford Ranger with 380 units, Toyota Corolla is second again 376 units and Toyota Hilux third with 374 units.
Mirage
105
71
68
Commodore
Falcon
Aurion
220
49
27
Journey
Carens
Stavic, Vito
49
16
9
Sport
86
Veloster
Merc C, E, S5
32
8
5
SUV
Captiva
CX-5
Rav4
Van Pickup Heavy Comâ&#x20AC;&#x2122;l
244
221
194
Hiace
iLoad
L300
158
90
64
Ranger
Hilux
Navara
380
374
304
Hino
Mitsi Fuso
Isuzu
50
47
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Change of ownership dealer to public (vehicles) Whangarei 602 20% Napier 516 1% Blenheim 160 5% Invercargill 498 23%
Auckland 5757 9% New Plym 480 9% Greymouth 77 8% National 17709 10%
Hamilton 1602 12% Wanganui 189 1% Westport 27 10%
Thames 210 7% Palm North 861 6% Christchurch 2354 17%
Tauranga 939 20% Masterton 159 4% Timaru 282 28%
Rotorua 281 NC Wellington 1511 6% Oamaru 84 15%
Gisborne 173 6% Nelson 316 2% Dunedin 631 4%
Change of ownership dealer to public (motorcycles) Whangarei 11 10% Napier 12 20% Blenheim 7 133% Invercargill 6 40%
Auckland 153 33% New Plym 6 63% Greymouth 0 100% National 390 5%
Hamilton 31 35% Wanganui 5 38% Westport 0 100%
Thames 8 167% Palm North 15 12% Christchurch 35 26%
Tauranga 22 8% Masterton 4 20% Timaru 3 50%
Rotorua 6 500% Wellington 39 19% Oamaru 1 50%
statistics More vehicle statistics are available on the MTA website www.mta.org.nz/dealer-stats Raw sales data on make, model and region of new passenger and new commercial vehicles are also available on the website in PDF format. 46 â&#x20AC;˘
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Gisborne 2 100% Nelson 9 29% Dunedin 15 15%
statistics
brought to you by
Whangarei 162 Auckland 2890 Hamilton 474 Thames 56 Tauranga 304 Rotorua 67 Gisborne 40 Napier 163 New Plymouth 143 Wanganui 54 Palmerston North 240 Masterton 51 Wellington 654 Nelson 80 Blenheim 62 Greymouth 8 Westport 5 Christchurch 951 Timaru 58 Oamaru 28 Dunedin 188 Invercargill 90 47 â&#x20AC;˘
62% 2% 32% 22% 32% 29% 5% 27% 27% 22% 10% 11% 14% 2% 29% 27% NC 33% 5% 300% 18% 20%
radiator September 2013
Whangarei 202 Auckland 4689 Hamilton 583 Thames 45 Tauranga 356 Rotorua 75 Gisborne 49 Napier 172 New Plymouth 162 Wanganui 71 Palmerston North 256 Masterton 37 Wellington 805 Nelson 141 Blenheim 60 Greymouth 22 Westport 8 Christchurch 1391 Timaru 92 Oamaru 18 Dunedin 280 Invercargill 115
96% 39% 49% 6% 79% 70% 88% 55% 43% 31% 73% 6% 27% 60% 122% 5% 60% 58% 48% 38% 33% 74%
Whangarei 12 Auckland 190 Hamilton 30 Thames 3 Tauranga 28 Rotorua 4 Gisborne 3 Napier 11 New Plymouth 9 Wanganui 9 Palmerston North 26 Masterton 6 Wellington 47 Nelson 8 Blenheim 0 Greymouth 5 Westport 0 Christchurch 72 Timaru 4 Oamaru 3 Dunedin 22 Invercargill 5
71% 35% 15% 25% 87% NC 200% NC 50% NC 37% 500% 9% 60% 100% 67% 100% 71% 43% 200% 144% 67%
Member Profile - ARMSTRONG SPORT Rick Armstrong, predominantly known for owning Armstrong Motor Group, has made the leap to cycling.
Armstrong... Sport? Tucked away down a short side road in central Wellington, Armstrong Sport is rather tricky to stumble upon. When you do find yourself inside the doors of the shop, you will be pleasantly surprised. Sleek, black walls, with bikes and accessories hanging from them and a feeling that you not only want, but need a new bike. You wouldn’t usually think that cars and cycling go hand in hand, but Rick Armstrong has proved differently, stretching himself across both industries. Originally from Christchurch, Rick entered the car industry at 19. He liked cars and needed a job – he managed to land one cleaning and selling them in a used car yard in Christchurch. This was the beginning of a long career in the motor industry. “I really liked it and worked my way up through the system into a position of management and was running a dealership for another operator,” Rick explains. “I ended up being a manager of a car dealership.”
By Rachelle Oxnam Marketing and Communications Coordinator
In 1993, Rick launched his own business in Christchurch, Armstrong Motors, selling Japanese imports for seven years. In 2000 he saw things turning more towards the new car industry, and thought it would be more sustainable. “I saw new cars as the opportunity for the future. With new and used cars, parts and services all lumped together, it was better business.” Now Rick has seven dealerships New Zealand wide within Armstrong Motor Group, with 17 different vehicle brands and about
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280 staff. His original objective of becoming a major player in the new car industry has proved successful.
Then came the bikes.
Rick jumped into the cycling industry for the love of it. “I got into cycling for fun. It was a hobby of mine, so I thought ‘why not?’,” he explains. “It is essentially just distributing bikes, parts and accessories.” But Rick has found that it is a rather different marketplace, compared to the motor industry. Theoretically, they should be the same – as it is essentially just selling stuff – but it has proved quite different, he says. Rick believes the cycling industry is more or less run by amateur business people who have got an interest in cycling and it hasn’t reached high volumes as yet. “Our industry is affected hugely by the internet because you can buy everything online and compare prices easily,” Rick says. Armstrong Sport is looking at developing the business so that it is more direct to the public. Rick aims to be the only link between the manufacturers and the customers, importing product straight from the factories. “It allows us to compete directly with the online websites.” As with the car industry, the cycling world is hugely competitive. There is always an oversupply of products, so Rick has to figure out what customers want and what turns over quickly, to avoid ending up with a backlog of unwanted stock. “There’s no real business model that works, you have to play it by ear,” Rick explains.
The Wellington store is an outlet type shop, with a warehouse attached to it and the bikes are able to be custom fitted by the trained staff. But the Wellington market is quite tough according to Rick. “We haven’t done any marketing as yet. It has been more or less word of mouth and a bit of social media, but business is picking up.” Armstrong Sport is also involved in various community events in Wellington. They are the major sponsor of the annual Armstrong Motor Group Wellington Marathon and enjoy getting behind sporting events and things related to health and fitness. “The young and old and families all get involved, it’s great,” says Rick. Rick really enjoys cycling. His passion for the sport and eagerness to try new things has led to the launch of Armstrong Sport – breaking the traditional business way of life and enjoying it while he does it. He says, “It’s a great business and it’s exciting. I’m not really doing it for the money; it’s more of a passion, which is wrong you know. If you like drinking beer you don’t need to buy the bar do you?”
Armstrong Sport it located at 15 Barker Street, Te Aro, Wellington.
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Don’t mess with the clock – odometer tampering Driving a RUC vehicle with an odometer or distance recorder that is not functioning is illegal, as is tampering with an odometer or installing an odometer isolator switch. Any repairers (MTA Members included) found interfering with the intended operation of speedometers or odometers could face fines of up to $200,000. By law, a RUC vehicle must have a working distance recorder. Tampering with an odometer or installing an odometer isolator switch to a RUC vehicle is illegal. If a vehicle owner wants to try to reclaim RUC license fees for off-road travel, they need to do that through the appropriate channels. Fitting an isolator switch for that purpose is not the right approach and any person who fits an isolator switch is contravening the law. Under the Motor Vehicles Sales Act 2003 tampering with an odometer is prohibited. The Act specifically advises that “A person must not tamper with a motor vehicle’s odometer”. If an offence is committed without reasonable excuse, an individual could be fined up to $50,000 and a company up to $200,000. Under the Road User Charges Act 2012, a person commits an offence if:
• that person operates a RUC vehicle on a road and that person knows or ought to have known that the distance recorder has been altered or damaged in a manner which is likely to affect the accuracy of the distance recorder, or
• that person wilfully alters, damages, or tampers with a distance recorder fitted to a RUC vehicle in a manner that affects or is likely to affect the accuracy of the distance recorder
• Upon conviction they are liable for a fine not exceeding $15,000 for an individual, $75,000 for a body corporate.
If an MTA Member were found to be tampering with speedometers or odometers, their membership to MTA would be put under considerable risk
WIN lunch with GREG MURPHY CardSmart customers have an exclusive opportunity to sit with Greg Murphy at the MTA Get Away Welcome Lunch*
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radiator September 2013
welcome
SUPER MINI JUMP PACKS
To the following members who joined the MTA team during the last month
1200 Amperes
AA Auto Service & Repair Newmarket
Auckland
Bay City Mitsubishi
Tauranga
Brendon Motors Torrens Terrace
Wellington
Carnaby's Panel and Paint
Gore
Elsdon Motors 2013
Porirua
• Rechargeable from mains/12V Cigarette lighter socket or fully charged 12V battery
Hampden GAS
Hampden
• Leaving on charge will not damage units
MGL Reliance Service Station
Timaru
Moutere Motors Ltd
Upper Moutere
Novus Christchurch
Christchurch
Omahu Night 'n Day
Hastings
Temuka Auto Court Ltd
Temuka
Travel Motors Direct Ltd
Papamoa
Whakamaramara Automotive 2013 Ltd
Tauranga
Z Te Kuiti
Te Kuiti
Starts 6/V6/V8/V12 Petrol and up to 4.2 litre Diesel engines
Ideal battery pack for camping, spotlighting, emergency lighting and roadside breakdowns or carry in your boat for back up
24/12V Converters 5 or 10 Amp Just plug into 24V Lighter socket
Price $220 plus GST
Phone: Alan Eagar 0274 449 244 Dean Eagar 0272 379720 Email: eagarag@xtra.co.nz
Delivering Your Success With our focus firmly on your needs and our reputation for service, NPD are delivering everything you need. We offer the complete refit package to independent service stations including: competitive fuel deliveries, complete refurbishment, re-tanking and re-imaging options and new reliable pumping equipment.
Our friendly team are here to help you. Call Craig today on 0800 544 6162 www.npd.co.nz
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Having a successful service-station has never been so easy and looked this good. With thousands of NPD-card users demanding millions of litres of fuel from our retail network we understand that our independent operators need a reliable supply, consistent and timely delivers with consideration of fuel price movements.
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Health and Safety
human resources
changes for business Health and safety reform has been all over the news recently with the government announcing plans to revamp the laws and introduce a new strategy on workplace health and safety. These reforms pick up on recommendations from the Report of the Royal Commission on the Pike River Coal Mine Tragedy. The aim of these changes is to reduce the workplace injury and death toll by 25 percent by 2020. Each year there are 75 workplace deaths on average in New Zealand, and another 600-900 people die each year from the long term effects of occupational diseases. There are a number of things businesses need to be aware of to respond to the proposed changes as they roll out.
Kerryn Foote MTA HR Advisor
Ph: 04 381 8841 kerryn.foote@mta.org.nz
Increase to Employer Health and Safety Levy The health and safety levy will increase by an average of 3c. Therefore the levy will rise from the current rate of 5c per $100 of wages to 8c per $100 of wages. This increase will fund the expanded work of WorkSafe New Zealand, and is also in light of the ACC levy cuts on households and businesses of around $300 million in 2014/15, announced in the May 2013 Budget.
Data and Research WorkSafe New Zealand will establish a research, evaluation and monitoring function to target efforts where there is most risk, and most need. At this time there is not a single agency that can provide sufficient good quality data on health and safety performance in New Zealand.
Education The agency will work closely with other government agencies to educate, guide and implement initiatives. Relationships will be cultivated with industry bodies to develop professional standards for health and safety practitioners.
New Government Agency
Benefits for business
A new stand-alone agency called WorkSafe New Zealand is expected to be up and running by December 2013. This agency will take over the development and implementation of health and safety regulation and will work closely with other agencies such as ACC.
Effective workplace health and safety has many positive effects in business. Most importantly it protects staff but it also limits your accident costs, as well as increases productivity and staff engagement. This reduces staff turnover and absenteeism, and increases customer satisfaction. These are all very positive reasons to embrace workplace health and safety in your business.
New Law The government will introduce the Health and Safety at Work Bill into Parliament in December 2013. The new legislation is based on Australian law and will replace the Health and Safety in Employment Act 1992. The new law and key supporting regulations are expected to be in place by the end of 2014 and will start coming into effect from then. The main aspects of the new Health and Safety at Work Bill are: • clarification of duty holders and their responsibilities • placing a positive duty on directors • improved worker participation • pulling together controls to manage hazardous substances in the workplace • classification of major hazard facilities • stronger penalties for breach of the Act • new compliance tools (warnings, infringement notices) • new Court powers • new cost recovery mechanism for prosecutions
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For advice on employees or employment law, call MTA’s dedicated Human Resources Advisor,
Kerryn Foote on 04 381 8841 and make the most of this valuable
MTA member benefit.
INDUSTRY TRAINING
MTA Training Calendar September- November 2013 To register, go to: www.mta.org.nz/jobs-and-training
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
September October November 1 Sunday 1 1 2 2 2 Saturday 3 3 Sunday North Shore 3 4 4 Tauranga North Shore 4 Corporate 5 Saturday 5 Tauranga February March April May 5 Corporate 6 Sunday 6 Thames 1 1 Easter Monday 1 Ashburton 6 7 7 Whitianga Central Auckland Saturday 2 Saturday 2 2 Ashburton 7 Saturday 8 Sunday 3 Sunday Central Auckland 3 3 8 4 Waiouru Corporate4 4 Saturday Central Auckland 8 Sunday 9 Saturday 5 Palmerston 5 Sunday Central Auckland North 5 9 9 10 Sunday 6 Palmerston North 6 Saturday 6 Blenheim 10 10 South Auckland Waitangi Day 7 Lower Hutt 7 Sunday 7 Kaikoura 11 11 11 South Auckland 8 Lower Hutt 8 Warkworth 8 Nelson 12 12 Saturday 9 Dargaville Cromwell 9 Saturday 9 Nelson Saturday 10 Sunday 10 13 13 Sunday 10 Kaitaia 12 Wanaka Sunday 11 Saturday 14 Saturday 11 Gisborne 14 Taihape 11 Whangarei 13 Queenstown 12 Whakatane 12 Sunday Hamilton 15 Sunday 15 Turangi 12 Whangarei 14 Queenstown 13 Rotorua 13 Saturday 13 Huntly 16 Feilding 16 15 Matamata 14 Tauranga 14 Sunday Te Awamutu Central Auckland 14 17 17 16 Saturday Taumarunui15 TaurangaHamilton15 Paraparaumu Te Kuiti Central Auckland 18 Hawera 18 Hamilton16 Wanganui 17 Sunday 16 Saturday 15 Christchurch Saturday 17 Sunday 16 Christchurch 19 New Plymouth 19 Saturday 17 Hawera 18 Invercargill Sunday 18 Balclutha 17 20 New Plymouth 20 Sunday 18 New Plymouth 19 Invercargill 19 Gore 19 New Plymouth 18 Saturday Invercargill 21 Saturday 21 Timaru 20 Christchurch 20 Te Anau 20 Saturday 19 Sunday Dunedin 22 Sunday 22 21 Timaru Christchurch 21 Cromwell 21 Sunday 20 Wairoa Timaru 23 23 22 22 CromwellAlexandra22 Paeroa 21 Waipukurau Christchurch 22 Hastings Christchurch 24 Wellington 23 Saturday 24 Dunedin 23 Hamilton 23 Saturday Saturday 24 Sunday 24 23 Hastings 25 Levin 25 Dunedin Hamilton 24 Sunday Sunday 25 25 ANZAC Day 24 26 Napier 26 Saturday 25 26 25 Saturday North Shore 26 27 27 Sunday 26 Napier Wellington 27 Saturday 26 Sunday South Auckland North Shore 28 Saturday 28 Labour 27 28 Day Sunday 27 Lower 27 Hutt South Auckland 28 29 Oamaru 28 Lower 28 Tauranga 29 Sunday 29 Hutt 29 Good Friday 30 29 Rangiora Tauranga 30 30 29 30 Saturday 30 Opotiki 31 30 Saturday 31 Sunday
Update course
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Inspectors course
radiator September 2013
31
Practical course
Managing the PRS
Are your AVI’s up-to-date? Get your Inspectors up to date with the latest WoF Training now! Places are available on courses to keep June your AVI’s informed about the latest 1 Saturday eVIRM updates, interpretations and2 technical Sunday bulletins. The WoF Training courses on this 3 Queens calendar are theBirthday only MTA courses that are recognised by 4 NZTA.
5
When you come along to a West Auckland course, please a laptop or a 6 to work on the eVIRM – tablet West Auckland you’ll get a lot more out of the 7 with one! course
8 Saturday 9 Sunday Want to 10 become 11 Te Aroha an AVI? 12 Tokoroa 13 Rotorua You need to complete an 14 Rotorua Inspectors course, a full day course with a test at the end of 15 Saturday the day. When you receive your 16 Sunday inspectors course confirmation, you will receive a 10-question 17 Invercargill pre-course test paper worth 20 18 Invercargill percent of your overall grade. Complete 19 Gorethe paper and bring it along with you on the day for 20 Dunedin marking and discussion. 21 Dunedin 22 Saturday If you have any questions, 23 Sunday please contact Kylie Robinson in 24 the Wellington office on 04 381 8836 or 25 kylie.robinson@mta.org.nz or26 Malcolm Whinham the 27Training Facilitator on 027 447 6349 or 28 malcolm.whinham@mta.org.nz 29 Saturday 30 Sunday
INDUSTRY TRAINING
Work experience starts up a career “My dad’s rapt I’ve got this job!” laughs automotive apprentice Logan McConchie who has a family history in the transport industry. Logan’s father has been driving trucks for as long as he can remember, and his brother-in-law completed an apprenticeship in heavy earthmoving equipment. Now Logan works at the Nelson branch of Truck Stops NZ Ltd, a major player in New Zealand’s trucking and transport industry.
“Logan’s fitted in very well and has a great attitude to his work,” he comments. “He also wants to learn heaps and has the ability to pick up new skills and techniques quickly. He is focused on what he wants to achieve and I think he has great potential in the industry.”
Logan says he’s discovered a job that suits him perfectly, and he says it’s all thanks to MITO’s StartUp® programme. He heard about the work experience opportunity through his careers advisor at Garin College, and once a week during Year 13 spent five hours working at Truck Stops. It wasn’t long before he was hooked and a few months later he was offered the apprenticeship.
He is now studying for his National Certificate in Motor Industry (Heavy Automotive) Road Transport and with opportunities to work on vehicles as diverse as fuel tankers, trailers and motor homes, Logan has plenty of variety in his work!
“I’ve always been interested in engines, especially heavy mechanical,” he says, “and I have been doing hands-on stuff here right from the start, which I really enjoy. The guys at work have given me lots of support; they are positive, encouraging and helpful.” Also pleased is Truck Stops Service Manager Phil Frater, who says Logan’s a popular and valued member of the team.
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MITO’s StartUp® programme provides secondary school students with work experience in the industry, as well as opportunities to learn essential skills through the National Certificate in Motor Industry (Foundation Skills). For more information freephone MITO 0800 88 21 21 or visit www.mito.org.nz
Member profile:
National Park Service Station Driving along State Highway 4, this is one of the few service stations you will come across. National Park Service Station, smack bang in the middle of National Park Village, allows you to pump gas while taking in the views of Mt Ruapehu and beyond. This Gasoline Alley Services site, including a Four Square, is innovative and spoils you for choice.
By Rachelle Oxnam, Communications and Marketing Coordinator Dhruv Dewan is one of four directors of the company, working alongside his wife, father and mother for the past seven years. They make up the majority of the staff, with the addition of Diane, their in-house baker. Dhruv and his father Raj have 35 years of retail experience between them, although not always in the motor industry. Raj opens the shop in the mornings and Dhruv starts at around 9am and works through until closing time at 7pm. Owning the shop, they don’t really have set shifts. “We are all full time. They are long days but what else am I going to do?” Dhruv says. The family-run business began as a simple
service station and grocery store – until the demand for other products became evident to Dhruv. “I had people come in and say ‘why don’t you have souvenirs?’ and so souvenirs there were,” he says. They now stock items including a range of local postcards, New Zealand t-shirts, leather hats, cakes and hot food, and even bike accessories. The station sees many people come through from overseas. The family are travellers themselves and know what tourists want. “They want to buy things to remember places by, the places they like the most,” Dhruv says. “New Zealand advertises itself as a country – people come
here to see its beauty and experience the different activities that are on offer. And you can’t experience any more of NZ than in the Tongariro National Park.” Dhruv spots tourists easily, he says: his station is often their first stop for petrol after getting their rental car in Auckland. “People come in and say ‘where’s the gas tank?’, and get me to open it for them or ‘what fuel do I use, what does unleaded mean?’; this is their first time filling up the car,” he says. Although National Park Service Station attracts a lot of tourists, Dhruv says his target market is everybody and anybody that is driving past. “You can’t be picky
"Goodbye Pork Pie" The gathering of minis
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who you sell stuff to. Even locals buy souvenirs – they have gifts to give too,” he says, explaining that they run a gift shop as well. The business has a full kitchen on site, where staff member Diane bakes cakes, brownies and hot food to sell in the shop. You won’t find another supermarket type shop for 47km, so Dhruv has to stock everything. “Thanks to the Four Square brand we are able to get a lot of product. Everything from fresh meat, produce, hardware, dried goods, chilled products – everything that you can get in a grocery store, I have in my store.”
“New Zealand advertises itself as a country – people come here to see its beauty and experience the different activities that are on offer. And you can’t experience any more of NZ than in the Tongariro National Park.” The family also ensures the shop never looks the same. Every three months, they change the layout, to keep it fresh and exciting. “We are constantly reinventing ourselves, because you have to. How many times would you go to the same restaurant and eat the same food?” Dhruv says that the business is all about establishing those relationships with customers. He wants them to come back every time they are near National Park. Another of the service station’s draw cards: it was featured in the 1981 classic Kiwi road movie Goodbye Pork Pie. A charity run takes place every two years where teams drive the length of New Zealand in Minis, on the same route that they did in the film, and they call in to National Park Service Station. Dhruv says he doesn’t have to do too much except entertain the group while they are there, but really enjoys their visit. The branding of both Four Square and GAS is crucial to the Dewan family. The Kiwi icon that is Four Square, and being a well known gas supplier is important. “We wouldn’t be able to do it without the franchises,” Dhruv says, “and people have to get their fuel from somewhere. Locals along with tourists can relate to the Four Square – there are so many of them around!” Dhruv thinks the business is great. The site has been there a long time, over 50 years. Dhruv has even met people who are in their 50s who did their mechanical apprenticeships there. “It’s an old place, and I love it."
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"Goodbye Pork Pie" Having featured in the film, National Park Service Station joins in on the fun of the Pork Pie Charity Run. Every two years, teams travel in Minis from Kaitaia to Invercargill over a six day period, to raise funds for charity. At Easter this year, 47 teams raised $197,000 for Leukaemia & Blood Cancer New Zealand – and made a stop at Dhruv’s service station in National Park. Dhruv loves that his is the station from the film, and previous to purchasing the site the news made him want it even more. “I saw the movie before I bought the gas station, not knowing I would one day own it! Once I knew that, I had to buy it.” The charity run organisers first contacted Dhruv in 2009 to let him know they were coming past on their journey – the first of hopefully many. The teams follow in the tyre tracks of the characters in the iconic
film, and make their way across 2,500km to the bottom of New Zealand. Pork Pie Charity Run organiser Rod Harris says Dhruv was so excited to have the teams visit his service station and has warmly welcomed them for the three events held so far. “One of the reasons he wanted that particular station was because it featured in the film,” says Rod. “The best part is, Dhruv took his wife on a road trip following the route of the film from Kaitaia to Invercargill for their honeymoon!” The teams call in to National Park Service Station, en route from Taupo, stopping for some photos and a look around – it all adds to the excitement of the trip. The next Pork Pie Charity Run will be held over Easter in 2015, and Dhruv hopes to put on some food and get more involved with the group at the next event. For more information on the Pork Pie Charity Run, go to www.porkpie.co.nz.
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Member Profile: Adlams European
Old meets new in the Adlam Citroën showroom.
The man at work. Denis Adlam services a customer’s Citroën
Taranaki the NZ home of Citroën
Adlams European
O
ne of the great things about the motor and related industry is that it does seem to generate more than its fair share of longstanding family associations and businesses. In New Plymouth, the name of Adlam and the Citroën brand have been associated for approaching 50 years, with son Denis carrying on the family firm started by his father in the late 1960s, while brother Andrew also specialises in the innovative French manufacturer in Wellington.
It started in 1966 with Adlam senior leasing the famed Citroën garage in Manaia from the man who could easily be described as the Father of Citroën in the North Island, Max McKay. There is a story in existence which suggests that in the heyday of the McKay years, Manaia and the surrounding Taranaki countryside boasted more Citroëns per capita than Paris. In 1968 the Adlams moved to New Plymouth and took over the Citroën franchise for the region. As Denis described it
to me, he and Andrew were born not with blood, but LHM (the special Citroën hydraulic fluid) in their veins and Citroëns were not so much a job as a life sentence, although I think vocation would have been a better term to use. With Denis, his dedication to the brand and the loyalty of his customers is very evident. Sitting at the end of the workshop is his own Citroën DS nearing the end of a refurbishment. Quite a special car, this example was bought new in London by the Catholic Church and was chauffeur driven as transport for one of their head money men, arriving in New Zealand in 1968. Looking almost sinister in black, crouching on its haunches as if preparing to pounce, not much more work is required to return this, one of the style icons of the 20th Century to its rightful place on the road. Alongside this sits the engine and transmission from his 1939 Light 12 traction Avant which, due to being savaged by the neighbour’s teenage son, is currently at a panel shop in Nelson being slowly put back into the shape it was prior to its accident. Of course, the workings of the motorcar have evolved quite considerably from the venerable D and Traction Avant models. Instead of adjusting carburettors and studying the colour of spark plug electrodes to tune a car or find a problem, the modern and efficient way is to plug it into the maker’s diagnostic machine and let the two computers (one in the car and one on the bench) interrogate each other. As the authorised Citroën agent, Denis has the full range of the latest equipment on hand for service or repair to the latest models. There's the added bonus that while brand new cars are being serviced with all the newest Citroën technology, the DS in the corner and the passing parade of Citroën old and new show that the name Adlam is as synonymous with Citroën passion today as it was in the '60s. To give an idea of the strength of the Adlam brand in today’s Citroën world, when the new luxury C6 model was released (a $100,000+ car), Denis sold two within two days of the
Denis Adlam’s DS in the workshop waiting patiently while he works.
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model’s release, and of the seven which sold in the entire country, three were sold to Adlam’s customers! As far as Denis is concerned, the recent change of NZ Citroën importer to the Singapore-based Sime Darby group is the best thing ever to have happened to the Marque in recent years and they are now proactively working with their dealers to improve the brand’s exposure across the country and to increase the profile of dealers and product. At the time I was talking to Denis, he had four new cars on order and was waxing lyrically about Simon and the Sime Darby team who are “going ahead and making it happen for Citroën.” There is something refreshing about walking into a car showroom and, as well as the expected shiny new cars on display, seeing something which pays respect to the past history and triumph of whatever the brand may be. For many of us, a car is not just an appliance, bought with the same detached disinterest of buying a new fridge. At the end of the day, it is of course merely a machine intended to get us from point A to point B quickly, efficiently and in comfort, yet as we car enthusiasts
There is something refreshing about walking into a car showroom and as well as the expected shiny new cars on display, seeing something which pays respect to the past history and triumph of whatever the brand may be.
Modern mechanic’s toolbox – Citroën’s latest diagnostic equipment.
know, we will all defend the supposed benefits of our favourite make with a passion which is often far greater than logic would support. So to go into the Adlam showroom to look at a new DS3 (and that is a car I would happily take home if money were to fall from the sky!) and see prominently displayed in the MTA wouldwindow like to thethank elegant and rare six cylinder Big 15/6, which was the pride of Denis’ father’s classic Citroën fleet, it is obvious its business partners they are not just out there to sell you a car, they are selling and sponsors... something which has a past, and most certainly, a future. As a one-man band – well one man and his office/admin manager Diane Corbert – quality control is never an issue. Any work done on your car is done personally by the boss and while it does sound like a cliché, it is his name above the door. It is equally importantly, his father’s name as well and Denis is very Productivity and aware of the significance of that not only to him, but to the Efficiency Citroën drivers around the country who make the journey to New Plymouth to get a touch of the Adlam magic. That was confirmed to me as I was about to leave and a C6 glided in. Not one of the three sold locally, this was a Hawkes Bay car and the owner wanted a word with the acknowledged expert.
Profita
MTA would like to thank MTA than would that? like to thank What better advert its business partners its business partners and sponsors... and sponsors... Article reproduced courtesy of NZ Today
MTA would like MTA would like to thank its business partners and sponsors...
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to thank its business partners and supporters Customer Relationships
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MTA Member Update news in brief Between 26 July and 8 August, MTA’s Member Update newsletter, emailed to all subscribed members, covered the following topics: Driving a RUC vehicle with an odometer or distance recorder that is not functioning is illegal, as is tampering with an odometer or installing an odometer isolator switch. Any repairers – MTA Members included – found interfering with the intended operation of speedometers or odometers, face fines of up to $200,000. Read more on page 50 of this issue. In December, the government is launching a new, standalone Crown agency, WorkSafe New Zealand, to administer and enforce health and safety regulations. See the Ministry of Business, Innovation and Employment’s website for more information. MTA announced the findings of the 2013 Collision Repairer Survey of Insurers. The results show what collision repair business owners think of the performance and operations of the insurance companies they interact with. View the results at www.mta.org.nz/collisionrepairsurvey2013. A New Zealand Herald article revealing Auckland’s ‘ghost buyers’, explained how they signed up for about $800,000 worth of new cars – and couldn’t pay for them. Protect yourself from situations like this by ensuring you take a deposit on all car sales. Apart from the massive waste of your sales people’s time, this could be quite costly for you. Go to www.mta.org.nz/ghostbuyers to read more about this.
NZTA has released CoF news – Issue 4 August 2013. This issue includes: • tow coupling safety alert • 2 axle-stop/retention devices – important warning • information for heavy vehicle operators and drivers on the NZTA website • new resource for HPSV operators • Holland FW31 series fifth wheels – warning • ORS and entering TSL numbers. You can read this, and earlier issues, on NZTA’s website. Trade Me is launching a service called 'price compare', which gives dealers the ability to compare prices of similar vehicles, rather than having to manually search through Trade Me Motors for a reasonable listing price. If you are interested in the 'price compare' service, contact your Trade Me account manager, phone 0800 42 88 62, or email motors@trademe.co.nz. MTA finished collecting information for the Dealer Attitude survey. Thank you to everyone who participated in the survey. We had a good response and will release the results soon. Every sector of the vehicle market enjoyed growth in July compared to 2012, with used import cars leading the way. Used imported cars enjoyed a particularly strong month, with their strongest month in almost six years. Read more at www. mta.org.nz/industrynews. There are HSNO Refrigerant License Approved Filler and Approved Handler courses for auto air conditioning technicians scheduled for 2013 in various locations. Go to www.mta.org. nz/autoac for more information and dates.
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diagnostic solutions
Herbert Leijen - AECS
4JX1 S..K
This article is a true description of an AECS technical help desk problem and how it was solved
Vehicle mid 1990’s Isuzu Wizard with a 3.0Ltr 4JX1 Diesel engine. Problem presented to the Helpdesk
Every so often we get presented with one of the old beasts above. I rarely respond any differently than I did this time; “Go away”. I don’t think that the injection system on these vehicles was very well developed and there have been many garages caught with very expensive unpaid labour bills on those old vehicles. With its hydraulic amplified injectors, the Huie injection system was truly innovative for its time. The solenoids on the injectors allow engine oil onto a piston, which in turn pushes diesel through a nozzle into the combustion chamber. The problem is that this system has failed on so many fronts that every problem is a common one. But I thought that it would be nice to write about just one of these problems that we dealt with (again) just recently. The purpose is to show you that we don’t only deal with late-model, high-tech vehicle faults, but that we get presented with everyday trouble vehicles too.
Technical support help desk. The shop has got an ATS scope and Launch scantool, so was in a perfect position to diagnose the problem quickly and efficiently. The complaint with this vehicle was that it would stall sometimes, just randomly; no fault codes would be logged. The following are the exact words from this diagnostician: "Hi guys, I have one here that cuts out while driving then just restarts again, but sometimes requires a lot of cranking. Also when starting from a long off time, it will sometimes start perfect then sometimes crank for ages and "never" start. Then you turn the key again and it starts. Comments please?" We know that 4JX1’s have their problems, but this is all about being helpful and constructive. The diagnostician then emailed us the following recording:
Recording of Cam shaft sensor vs injection while stalling
In the above recording of injection vs cam shaft sensor it is visible that the engine RPM drops while injection remains present. This indicates to me that the fuel supply to the fuel channel in the head or the engine oil supply to the injectors drops off.
Clear hose The next best thing is to put a clear hose on the fuel return from the cylinder head and see if there is continuous flow without any air bubbles, or to see if the high engine oil pressure in the cylinder head remains present. It needs to be noted that if the oil pressure is too low, that the injectors will not be activated. So logically, the clear return hose got fitted and this showed a continuous flow of Diesel.
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Hmmm... Better measure the engine oil pressure in the high pressure rail, through the pressure sensor under the rocker cover. This produced the following pattern recorded while cruising, slowing down, just before stall. The ATS scope was in recording mode, so that a trigger button could lock the whole recording when the fault occurred.
Cam shaft sensor vs high pressure engine oil sensor while stalling.
In this part of the recording, the engine is slowing down, resulting in a lower rail pressure than at cruise. Just before stalling, there is a sudden jump in oil pressure - could this be the problem? However a sudden pressure increase would only pump more diesel into the combustion chamber, increasing the revs. We thought it was time for a closer look.
Cam vs rail pressure sensor.
The devil is in the detail, they say; with this much detail on our ATS scope we can pinpoint the exact reason for this stalling. When the engine is running at lower revs, you can see on the rail pressure sensor signal, every time just after the interference from the injector, that the rail pressure builds up again. The rail pressure builds up as a result of the high pressure engine oil pump replenishing the oil used by each injector. However in the second cycle after the sudden ‘pressure’ jump, no such rise is visible….
Got it! Ask yourself why? Because of the sudden voltage jump of the faulty pressure sensor, the ECU ‘thinks’ that the pressure is too high. In response, the ECU will limit the oil entering the high pressure pump. When no oil enters the high pressure pump, the pump element does not replenish the oil in the high pressure rail. Only the oil already in
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the pump after the voltage jump will make the pressure still rise once. This is also why the rail pressure drops every beat of the engine; each injector activation takes oil out of the rail. This is also why hardly any diesel gets injected, until the actual (not the reported) pressure in the rail is so low that no diesel gets injected at all, causing the engine to stall. The rail pressure sensor signal is high enough for the ECU to ‘think’ that there is enough pressure to inject. As a result the ECU keeps injecting until the very last beat. We are obviously dealing with a faulty pressure sensor, something which is very common on these vehicles but still it’s nice to be absolutely sure! A new pressure sensor was fitted together with a new wiring loom and the engine ECU was emptied as it had filled up with engine oil and diesel. The customer was sent away with the advice that the engine oil needed to be checked
every day and that as soon as there was any rise in oil level that the O-rings around the injectors had to be replaced.
Conclusion The garage that worked on this problem vehicle has technical support from AECS as part of an equipment purchase package. Even if you are working on everyday vehicles, it pays to have quality equipment and support. Do you tell the owner that it is too expensive to fix? Or do you quickly and efficiently make the correct diagnosis, replace the faulty part and send the customer on their way again. Choose your business investments wisely. There are too many workshops where expensive equipment bought has been abandoned by the distributor, or has never been supported at all. The team at AECS is very highly skilled and keen to help.
ALL FUELED UP
service station news
Brought to you
by Liezel Jahnke MTA Environmental and Fuel Services Manager
Costs push oil companies into slump New troves of oil have been found all over the globe, and oil companies are taking in around $100 for every barrel they produce. But these seemingly prosperous conditions aren't doing much for Big Oil: profit and production at the world's largest oil companies are slumping badly. Exxon Mobil, Shell, BP and Chevron all posted disappointing earnings in August. All of them face the same problem, the cost to get newfound oil from remote locations and tightly packed rock is high and rising. And it takes years and billions of dollars to get big new production projects up and running. The higher extraction costs could translate to higher oil and gasoline prices for consumers. Strong production growth at an oil company can offset higher operating costs, "but when production is flat or declining it's a big hit," says Brian Youngberg, an analyst at Edward Jones. "Even though oil prices are US$100 (NZ$126) or higher, the returns on investment aren't what they used to be." The new oil being found and produced is in ultra-deep ocean waters, in sands that must be heated to release the hydrocarbons, or trapped in shale or other tight rock that requires constant drilling to keep production steady. Prospects off New Zealand's coast are also in deep water and in areas exposed to extreme storms. That makes this new oil far more expensive to get out of the ground than what's known as conventional oil, large pools of oil and gas in relatively easy-to-drill locations. Those reserves have always been hard to find, but now they are all but gone outside of the Middle East. David Vaucher, who tracks oil production operating costs at IHS CERA,
says oilfield operation costs are now at a record high. "The fields are more remote and the resource conditions are more extreme," he says. New oil projects in the US and Canada, where production is growing faster than anywhere in the world, require high oil prices to be profitable, Vaucher says. In order to make an industry average return, a new production project in the Canadian oil sands requires a price of $81 per barrel. For an onshore US field, it's US$70 per barrel, but it ranges from US$45 to US$95 per barrel, depending on the rate of oil flow. In the Gulf of Mexico, it's US$63 and in the Middle East just US$23 per barrel. Many oil analysts predict that relatively weak growth in world oil demand coupled with rising production from newfound fields will make for flat or lower oil prices in the years to come. But if big oil companies can't earn strong profits at today's oil prices, it may mean prices will have to rise higher to convince them it's worth the risk to continue to aggressively explore new fields. If they worry they can't make enough money, they'll cut back. Oswald Clint, an analyst at Bernstein Research, said in a recent report that oil prices can hold steady and even rise into 2015. Among his reasons: The growth of US oil production is slowing because the best new American fields have been tapped, and the number of rigs probing new fields has flattened out. One of the more difficult places for Big Oil lately has been onshore in the US, which is in the midst of a historic oil boom being driven by the new discoveries. American production is now rising faster than any time since the 1950s, putting the nation on track to become the world's biggest oil producer. But major oil companies such as Exxon Mobil, Chevron, Royal Dutch Shell and BP were late to get into the US shale oil game, and therefore had to pay high prices to acquire promising land. And the drilling is hugely expensive, too. Because the oil is thinly dispersed and hard to squeeze out, dozens of wells must be systematically drilled over an area to get to the oil.
American production is now rising faster than any time since the 1950s
Drillers are making technological leaps that are reducing some costs, but those are being countered by higher costs to lease equipment, buy supplies and pay workers that are shrinking profits. Smaller oil companies such as EOG
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Resources and Continental Resources that found these troves early were able to acquire the best acreage for relatively low prices. Because oil production is rising for these smaller companies, profits can rise even if costs increase. For a major oil company such as Exxon or Shell, even big increases from dozens of wells in Texas or North Dakota aren't enough to make up for declining production in giant fields around the globe. Royal Dutch Shell announced that oil production fell 1.3 percent from a year earlier and profit fell 57 percent, largely because of a write-down of the value of the leases on US land that the company thought held large amounts of oil or other liquid hydrocarbons. "Production curves are less productive, than we originally expected," Shell CFO Simon Henry said on a call with investors. Shell CEO Peter Vosser said that while US shale oil production was proceeding well in general, the company plans to sell stakes in four or five of the nine regions
where it has holdings because it hasn't been able to get as much oil to flow as it thought it could. Because oil production is rising for smaller companies, profits can rise even if costs increase The company also announced it was abandoning plans to boost production to four million barrels per day by 2018 from its current rate of three million per day. Exxon Mobil, the world's biggest investorowned company, said profits fell 57 percent, to their lowest level in more than three years. Poor performance from the company's refining operations was largely to blame, but oil production fell 1.9 percent, the ninth straight quarter production has declined. The last time Exxon's earnings fell below US$7 billion in a quarter, oil prices averaged US$79 per barrel. In this most recent quarter, they averaged US$94. BP reported a production decline of 1.5
percent on Tuesday and said production in the third quarter would also fall and costs would climb. At the time of these other announcements, Chevron was expected to post a 17 percent drop in earnings per share, according to analysts polled by FactSet. The oil majors have been investing heavily in major new projects, especially in the Gulf of Mexico, Brazil, and East and West Africa. But the price tags are so high that the companies can't pursue everything they want. The projects take years to begin producing. Exxon announced in May that it will spend US$4 billion to develop a giant field called Julia in the Gulf of Mexico. The field was discovered in 2007, but it won't yield anything until 2016. Chevron is spending US$16 billion to develop three fields in the Gulf of Mexico that will begin production next year. Parts of those fields were first drilled as early as 2003.
Petrol price complaints debunked Petrol companies are not ripping off New Zealand motorists by being too slow to pass on declines in crude oil prices, researchers say. The New Zealand Institute of Economic Research says it has found no evidence of opportunistic price gouging by petrol companies. Motorists often complain that petrol companies are quick to raise prices at the pump but then conspire to drop them slowly when international oil prices fall. But Dr Kirdan Lees of the NZIER told TV ONE's Breakfast the numbers tell a different story. "When we run the numbers what we find is the price of petrol at the pump changes just as quickly regardless of whether the price of oil goes up or whether it falls," Dr Lees said. "So we find no evidence that punters are being gouged at the pump." Petrol prices have been near their all-time high, yet oil prices are well shy of their all-time peak. Asked how this differential might be explained, Dr Lees said the price of petrol is a function of two things â&#x20AC;&#x201C; taxes that don't change very much and the New Zealand price of crude which changes all the time. "What companies might be doing is kind of exploiting or gouging the punter by simply delaying how quickly falls in the price of crude are passed through. But we really don't find any evidence of that over the last 10 years," he said. The NZIER says the price of petrol is mostly made up of taxes and levies that retailers can do little about.
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It found that without these taxes, levies and the cost of the Emission Trading Scheme, weekly petrol prices roughly match weekly movements in the New Zealand dollar price of Dubai crude, using government data from April 2004 to June 2013. Asked where he thinks motorists' perception of price gouging comes from, Dr Lee said drivers are really well attuned to the price they are paying for petrol. "It's a frequent purchase that we make each week or each other week, so we're really acutely aware of when the prices actually go up," he said. "But we don't really observe the New Zealand dollar price of crude and what's actually driving some of those price changes. So I think that's why we see some
of that difference between what people perceive and the reality when we actually run the numbers and see what's going on there." Dr Lees said the Ministry of Business, Innovation and Employment (MBIE) monitors how quickly petrol and oil prices are changing. That kind of monitoring probably helps the market and helps prevent petrol companies trying to "put one over consumers", he said. *Visit the MBIE oil price monitor website here: www.med.govt.nz/sectors-industries/ energy/liquid-fuel-market/weekly-oil-pricemonitoring Source: tvnz.co.nz
ALL FUELED UP Invisible DNA spray introduced to deter robbers Z service stations are trialling an invisible liquid "DNA" they hope will deter would-be robbers and improve safety for staff and customers. In a recent statement, Z said it would be the country's first service station to use the SelectaDNA Spray technology which it is trialling at a number of sites. The new state-of-the-art security system enables would-be robbers to be invisibly "tagged" and therefore identifiable to police, the statement said. The technology being used is not to identify stolen products, as has been the case in recent police-led "Safe as Houses" projects, but would identify the robber by using a high-tech spray unit installed at the doors that is activated automatically in the event of a robbery or after-hours burglary. Highly visible warning signage is placed on the doors to alert wouldbe robbers of its presence. However, once there has been a security breach it is impossible to leave the scene without being sprayed with a fine DNA-laced mist. Z said the DNA solution – unique to each location – stays on the skin for up to 10 days and glows blue under ultraviolet light. The DNA within the solution provides police with a link between offender and crime scene. Z Energy general manager retail Mark Forsyth said: "The system has already proved to be a very effective deterrent in overseas markets, and it is a measure that we can add to our existing efforts to keep our staff and customers safe. "In reality Z only has about five robberies a year, but that is five too many when you consider the impact on staff and customers present when these incidents occur and the possible harm. If introducing this system is a deterrent to would-be robbers and burglars then as far as we're concerned this is money well spent." If the new system was introduced across the company's network, it would complement existing security measures, including digital high definition CCTV; virtually no cash kept on site; remote alarm alerts to security staff; and staff training to ensure employees and customers remain as safe as possible during an incident, Mr Forsyth said. SelectaDNA director David Morrissey said the solution was a waterbased, non-toxic spray that incorporated a UV tracer, with each batch of the solution having a unique synthetic DNA that is registered to a location. Source: New Zealand Herald
The heart of your forecourt is here
UK: Independent petrol retailers
adopt supermarket tactics to survive
With recent figures showing UK supermarkets have increased their share of the petrol market it’s time for independent petrol retailers to wake up. If they don’t, many will go the way of independent booksellers, record shops and travel agents, according to Ron Rodney, Head of Business Partnerships at CarBidOff. “Luckily for independents, because the threat to them isn’t coming from the Internet, if they take steps now they could easily survive and prosper. But one of the reasons many independents are in trouble is they don’t maximise the revenue they could get from each customer. In fact it appears many independents believe a customer only visits their forecourt to buy petrol, when in reality the person visiting their forecourt is a consumer of various products and services,” he said.
Independents need to change their thought processes Imagine if supermarkets had stayed with a mindset stuck in the 70’s that believed all people wanted from them was food. Well, many independents seem to feel all consumers want from them is petrol, some snacks and a drink. If independent petrol retailers took a leaf from the marketing books of Amazon, the supermarkets and online retailers they would increase their average revenue per customer and prosper a lot more. Here are a few of the things they could do:
Learning from Amazon If you’ve ever received a parcel from Amazon have you noticed apart from the item you bought, there’s usually something else in the parcel. Often you’ll see a leaflet either for one of Amazon’s other services or a leaflet from one of their partners. Now Amazon are smart and the only reason they do this is because it works. They realised a long time ago that when someone’s just bought from you or just received something from you, they’ll be more receptive to buying something again straightaway. The take away for petrol retailers: When someone buys petrol give them a leaflet from one of your business partners or a leaflet promoting one of your in-store offers.
Learning from Supermarkets I mentioned supermarkets earlier because they have been so good at squeezing every penny they can out of their customers. So instead of thinking of supermarkets as a threat, independents can use the ideas that have worked for supermarkets. One of the take aways for petrol retailers: One such idea would be to create brand loyalty with loyalty cards. But divide customers into business users and non business users and market to them accordingly.
Learning from online retailers Most online retailers operate on such small margins they have been forced to come up with innovative ideas to maximise revenue. One idea that is probably more relevant to petrol retailers is the use of email to sell to customers. I’m sure if a study was carried out amongst independent petrol retailers you’d find most of them don’t have the email addresses for most of their customers. Well not having the email addresses of your customers is literally costing you tens of thousands in lost revenue.
Introducing the first in the Gallagher Pulse L series
The take away for petrol retailers: Get the email addresses of each and every one of your customers. There are many ways to do this such as offering them a discount on their next visit if they give you their address.
Conclusion: To survive and prosper independent petrol retailers will have to start thinking out of the box. But thankfully there are so many other easy to implement things they can do, the future for most of them should be good.
www.gallagher.co
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Source: Petrolplaza.com
A picture is worth a thousand sales It's the question every husband dreads. You're just about to sneak out the door to pick up some chips and dip before the big game, when a voice calls out from the kitchen, "Honey, are you going to the store? Could you pick up some (long, detailed list of miscellaneous items)?" Forget about the extra trips down the aisles, or spending a few more bucks. The real problem is getting the exact items our wives want: the light (not fat-free) French vanilla ice cream, the newest version of baked (not regular) chips. Every time we husbands dutifully set off to acquire the proper goods, and every time we come home with at least one wrong item.
member benefits Matt Chote
MTA Member Benefits Manager Ph: 04 381 8842 matthew.chote@mta.org.nz
Fortunately, my wife discovered a valuable trick to ensure I get exactly what she wants: she shows me the empty box. Why is producing a visual cue the easiest way for her to explain, and for me to understand, exactly what she wants? Why is it easier for me to remember that product when I get to the store? It's simple: we think in pictures. Because our minds use pictures to digest and remember information, communication works most effectively when we use images. Unfortunately, too many businesses spend more time choosing their words than creating images for their customers. They use words like "best", "quality," Using stories and "service" to describe their company or product. But these to illustrate words are used so frequently the quality they've become meaningless and service to customers. In addition, they mean different things to different of your people. When we depend on these company words to convey an image or idea, engages your the message is unclear, and the customers, sale is lost. Only you understand what these words mean to your business, because you have firsthand experience with your company. How did them in the sales process because you get this wonderful understanding? By seeing they don't understand the power the examples, hearing the stories and talking of a good image. Using stories to with customers who love you. Because of this, illustrate the quality and service you have pictures to accompany these otherwise of your company engages your empty words. customers, and makes it easy and entertaining for them to digest all Your potential customers, however, do not share the wonderful information you give these associations. They don't understand these them. By visualising your stories, words the way you do because they don't have they will get a clear understanding the same mental pictures. They don't know about of what your company is all about. the customer you saved from a difficult situation by rushing a technician to his job so his family can Creating images also leaves a hit the road for the long weekend away. They don't memorable impression in your know about the time your customer won a large customer's mind. Just as it is easier account because the maintenance and service for me to remember a product by you provide keeps his fleet on the go. Potential its box, it will be easier for your customers don't know these things; only you do. customers to remember you by your stories. The next time your Your job is to share these pictures with prospects customer is asked which supplier to and customers in order to fully illustrate what you go with, you and your story will be can do for them. Too many businesses rely on lists, uppermost in his mind. brochures, FAQs, and comparative charts to aid
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The great thing about using pictures is they help customers not only understand you, but relate to you as well. Because stories and images are clearly understood, customers feel more at ease when you use them. Understanding your message clearly makes your customer feel good about you, your company, and your product and services. With pictures, it is easy for customers to understand and remember how you and your business exemplify the qualities others only talk about. So grab that paintbrush, and start painting! Or maybe even easier, go to www.mta.org.nz/marketing and see what we have already put together for you to use. Source: www.SalesDog.com
enviro news
Funding boost for ‘Stump to Pump’ programme
Liezel Jahnke
An innovation programme that will pave the way for generating more value from forestry waste by converting it to liquid biofuels is to receive government funding through the Primary Growth Partnership (PGP).
Environmental & Fuel Services Manager Ph: 04 381 8843 liezel.jahnke@mta.org.nz
Auckland and Christchurch car occupants exposed to the poorest air quality While New Zealand’s major cities have less congestion and lower volumes of traffic than other cities elsewhere in the world they still produce high commuter exposure to finer particles, University of Canterbury (UC) transport expert Professor Simon Kingham says. He has led a major project with other researchers from the University of Auckland and NIWA, collecting data in Christchurch and Auckland. "This was the first study ever done in New Zealand. The results show that, compared to other countries, the air that commuters breathe while travelling is cleaner for carbon monoxide, but similar for fine particulates for some of the world’s biggest cities. "The air inside motor cars is generally more polluted than the air in buses, trains and for cyclists. People cycling on the road experience significantly worse quality air than people cycling on routes away from roads. "While people travelling by bicycle on roads travel in cleaner air, they can be exposed to higher peaks of pollution than other travellers. This was one of the first studies worldwide in
The Ministry for Primary Industries (MPI) has approved co-funding of $6.75 million for the 14-month ‘Stump to Pump’ PGP programme. Stump to Pump partners Norske Skog and Z Energy will match funding of $6.75 million, bringing the project’s total funding to $13.5 million. This relatively short-term PGP programme will study the feasibility, including the cost-effectiveness, of making biofuel from forestry waste. It will determine the commercial viability of establishing a modular test plant to process New Zealand forest waste into sustainable transport fuel. Currently, the material left over after harvesting and processing, such as sawdust, bark and harvest residue, has little or no value. “If this material can be used commercially, then we can maximise the value of every tree harvested to the benefit of our primary sector and our economy,” says MPI’s Acting Director-General Roger Smith. "If this technology can be commercialised, the estimated economic benefit for New Zealand over the next 20-25 years is an annual increase in GDP of up to $1 billion and the creation of 1,200 direct jobs.” “The biofuel plant that we’re investigating could potentially process around 50,000 tonnes of forest waste per annum and cost in the order of $80-$100 million,” says Peter McCarty of Norske Skog. “Such a plant would take the industry to the next level in its goal of commercialising this new technology.” “There are also significant sustainability and environmental benefits”, says Z Energy Chief Executive Mike Bennetts. “Z is committed to renewable transport fuels being available to New Zealanders and New Zealand businesses. This project is an opportunity to explore a value chain that could deliver large volumes of biofuels for New Zealand over the long term.” Source: Scoop.co.nz
Have you met the MTA Environmental Standards yet? At the end of June 2013 all existing members had been surveyed for the standards by MTA Business Managers. As at August 2013, around 75 percent of the members surveyed meet the standards. In September 2011, the MTA Board decided that all members will be required to meet the environmental standards by 31 May 2014.
a city with little or no long range transport of pollutants, lower population density and relatively little traffic congestion and, consequently, in an environment where the traffic is consistently moving, albeit sometimes at a slower speed. "Despite this, the result showed that occupants in cars are exposed to the poorest air quality. It is widely accepted that transport emitted air pollution has an adverse effect on health outcomes such as mortality, morbidity and hospital admissions. "In addition the economic costs can be great. It has been estimated that each year there are 500 cases of premature death in New Zealand due to exposure to air pollution. We wanted to investigate the issue of air pollution to gauge how significant it was in a small city such as Christchurch. The research study was funded by the New Zealand Transport Agency and New Zealand’s Foundation for Research Science and Technology. Press release by University of Canterbury
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Members who meet the standards will be awarded a certificate and marketing material to show their customers that they are a business with a good level of environmental performance. For members who don’t meet the standards, the site survey with the MTA Business Manager will identify the actions required to enable them to meet the standards.
What’s in it for you?
• It makes good business sense. • Provides a point of difference for customers seeking sustainable business practices. • Have a cleaner, safer site for staff and customers. • There’s less risk from pollution and fines. • Enjoy cost savings from reduced energy use and waste. • Lead by example to promote environmental responsibility in the industry.
More information Visit www.mta.org.nz/environment for information and resources about the
standards and what to do to ensure you meet the standards. Alternatively contact your MTA Business Manager.
ADVERTORIAL
Why is Health Insurance Important for you? One of the things we take for granted is continued good health. We really don’t know what’s around the corner, and the kiwi “she’ll be right” attitude may not be enough to protect the ones we love. That’s where Accuro Health insurance can help. Recently a client and friend of mine, we’ll call him “Rob” to protect his privacy, came to me to see if he was covered for a situation he had got himself into.
knew it was the right thing to do for the whole family. Accuro arranged for Rob to have surgery through his own surgeon, immediately. The hernia was treated quickly and Rob was able to focus on enjoying his life and getting back to work, instead of worrying about how he was going to pay for everything. Rob came through with flying colours
Rob is a fit and healthy guy with two grown boys. He was helping one of his sons with some renovation work when he felt a pain in his side. He thought it was just a bit of a strain but when the pain got worse and Rob could no longer bend over to pick up his hammer, he realised it was a little more serious. Rob went to a doctor who referred him to a specialist where he was diagnosed with a hernia. He was going to need an operation. There were two options: an operation potentially costing thousands of dollars or waiting on the public waiting list and possibly suffering months of pain before he received any treatment. Fortunately Rob had already taken out Health Insurance with Accuro. With two grown sons at university who remained dependant on Rob and his wife, Rob
Scott Waddington
Can
and said “Accuro was so supportive and made the process so easy and quick when we were under so much stress…. allowing us to get back to normality. Health insurance is a real investment”. I’m often asked by people if they need medical insurance. While my answer entirely depends on individual circumstances, it’s usually “yes”. I believe it’s really important for families to consider having health cover. Today there are a growing number of medical treatments which the public health system considers non-urgent. The simple truth is that medical insurance is more affordable than you think. So if you already have medical insurance and are concerned about the rising costs of your premiums, or if you think that medical insurance is too expensive, talk to your MTA Business Manager and we will give you a call to discuss a no obligation quote. We can work with you to find some affordable options to protect the health of your entire family. In a previous life I was a mechanic so I fully understand the health issues that you can have working in your own business and I am happy to discuss with you your health insurance needs and what we at Accuro will be able to do for you. I look forward to hearing from you.
afford not to be insured?
One of the things we take for granted is continued good health, and the Kiwi “She’ll be right” attitude is the only health plan many of us have in place. That’s where Accuro Health Insurance can help. With health insurance, you don’t need to take your chances on a public waiting list for elective treatment or pay for the full cost of health care yourself. By choosing the protection of health insurance, you have faster access to a wider range of treatment options. Protecting you and your family has never been easier. After all, we’ve been taking care of New Zealanders for over 40 years. Contact us on 0800 222 876, info@accuro.co.nz or visit the MTA website for a free quote at www.mta.org.nz/accuro. facebook.com/Accurohealthinsurance
ACC6112 08/13
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radiator September 2013
Road Test - Suzuki GSX650FU
Words and images courtesy Motorcycle Trader
Gratifying Gixxer When I first sampled Suzuki’s GSX650F I concluded with the comment: “As a sportsbike, the GSX-F offered enough sportiness to excite, yet as a sports-tourer it offered enough practicality and comfort for everyday use.” 70 •
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Having recently sampled the LAMS version, the GSX650FU, I’ve little reason to change that assessment. In LAMS format it makes perfect sense for a novice rider – especially with the wallet-friendly $11,995 (plus ORC) price tag. Along with its SV650S V-twin cousin, the LAMS GSX650FU gets a re-jigged ECM (engine control module) to bring it in under the 150kW per tonne power-to-weight ratio for sub-660cc learner-approved motorcycles. The re-tuning via the replacement ECM isn’t overly noticeable up to 7000rpm, but above that not much happens – other than the tacho needle moving. An indicated 100kph registers at 5100rpm. The restricted 650’s engine remains flexible – and especially in the 3000-6000rpm range. There’s no ‘buzziness’ or annoying vibrations from the fuel-injected four-cylinder powerplant. The gearbox is the usual Suzuki slick-shifting item.
I like the F’s rational riding position that sees little in the way of weight placed on the wrists. The 26-degree rake is conservative by sportsbike standards, but the F is more about rider comfort and practicality – something it delivers in bucket loads. The riding position is a lot more ‘sport-tourer’ than ‘sport’, so when riding you can grip with your legs and comfortably sit without much weight, if any, on your hands, assuming you're not a noob and you're not gripping onto the handlebars out of sheer terror like I was for the first few hours riding it. I found the suspension a bit harsh over urban bumps, and a little more compliance wouldn’t go astray. The 41mm KYB front fork offers adjustable spring preload, while the KYB singleshock rear gets adjustable spring preload and rebound damping. The stylish blue and white bodywork offers good wind protection, although the mirrors could do with a little more width.
Specifications A lack of underseat storage is compensated by sturdy attachment points to strap luggage to the seat. All of the controls are in easy reach, with a nice clear and bright instrument panel. The panel has a digital odometer able to be cycled to two separate trip meters, and a clock (very handy!). There is a shift light, which you can set to illuminate at any particular rev for each gear and is so bright you don't have to look at it to see it. The clutch and brake levers are adjustable, so you can adjust how far out they stand from the grips. The clutch itself is very forgiving. The friction point is reasonably large and smooth, so it’s easy to start off the bike in first and not jerk around like an idiot. The 19L tank is good for 350km between fills, and the finish on the test bike was of a high standard in view of the budget price. So, if you’re a learner with some riding experience under your belt and want something that will last beyond your restrictions, the Suzuki GSX650FU may be a good choice for you. I'm confident that it's going to easily meet everything a newb can throw at it, from daily commutes to long weekend rides with mates.
+
Easy to ride Smooth engine Paint and chrome top notch
-
Budget suspension Lack of underseat storage
Engine type: Liquid-cooled, DOHC, in-line four-cylinder Capacity: 656cc Bore x stroke: 65.5 x 48.7mm Compression ratio: 11.5:1 Fuel system: EFI Transmission Type: Six-speed, constant mesh Final drive: Chain Front suspension: Conventional 41mm fork, adjustable for preload Rear suspension: Monoshock, adjustable for preload and rebound Front brake: Twin 310mm discs with four-piston calipers Rear brake: Single 240mm disc with twin-piston caliper Dry weight: 216kg Seat height: 790mm Fuel capacity: 19 Litres Price: $11,995 + ORC
MTA Auckland Branch Awards 2014 Saturday 15 March 2014, from 6:30pm - late Bruce Mason Centre Corner Hurstmere Road and The Promenade Takapuna Beach, Auckland www.mta.org.nz/aucklandawards2014 Join us for another memorable awards evening with local (and internationally known) MC, comedian Simon McKinney. After we have celebrated the successes of local Auckland MTA member businesses, you can dance the night away with Catch 22. Tickets are just $95+GST per person or $1000 including GST for a table of 10. Aside from fantastic networking and entertainment, you will also enjoy pre dinner drinks and a beautiful three course dinner. To purchase tickets and to nominate your business or another member’s business for an award please go to the MTA Auckland Awards website.
For more information, please contact Manisha Chhima at MTA, 04 381 8818 email: Manisha.chhima@mta.org.nz 71 •
radiator September 2013
directory MTA Executive Team
STEPHEN MATTHEWS Chief Executive Officer
Board of Directors 2013 David Storey
Phone 04-381 8820 stephen.matthews@mta.org.nz
President
Auckland • 09 415 8569 president@mta.org.nz
Malcolm Davison Vice-President Auckland • 09 360 3200 vicepresident@mta.org.nz
JIM GIBBONS
Finance Director
Wellington • 04 384 9734 jim.gibbons@colmotor.co.nz
BOB BONIFACE Auckland • 09 636 5463 bob.boniface@xtra.co.nz
MARK DARROW
IAN STRONACH
GAVIN STILL
General Manager Marketing & Communications
General Manager Member Benefits
Phone 04-381 8801 ian.stronach@mta.org.nz
Phone 04-381 8822 gavin.still@mta.org.nz
Auckland • 021 888-858 mdarrow@pggwrightson.co.nz
Dave Harris Waikato/Thames Valley • 027 474 8900 dave@matamata.co.nz
JUDY LANGE Southland • 03-218 7149 judy@a1autoservices.co.nz
Richard Punter Hawkes Bay • 021-943 611 richard@stratix-management.com
Keith Webb Wellington • 04-478 2477 keith.webb@xtra.co.nz
MTA Business Managers NORTHERN REGION
DOUGAL MORRISON
KAETRIN STEPHENSON
Phone 04-381 8816 dougal.morrison@mta.org.nz
Phone 04-381 8807 kaetrin.stephenson@mta.org.nz
General Manager Advocacy & Training
Chief Financial Officer and Administration
Your Business Manager will provide you with access to market leading training, introductions to business specialists and mentors, and a range of discounts to ensure your business operates at its full potential. To take advantage of these benefits please contact your local manager or Bob McCoy: 04 381 8837 or bob.mccoy@mta.org.nz
CENTRAL REGION
Auckland, Northland
Greater Auckland area
David Abbott
Peter Nicholson
(Regional Manager) PO Box 331369, Auckland 0740 Phone 09 488 0962 Mobile 0274 93 9942 Fax 0800 000 695 john.henderson@mta.org.nz
PO Box 9214, Newmarket Auckland 1149 Phone 09 271 1397 Mobile 0274-448 772 Fax 0800 000 695 david.abbott@mta.org.nz
Dealer/Service Station Specialist PO Box 331369, Auckland 0740 Phone 09 473 5975 Mobile 027 491 3907 Fax 0800 000 695 peter.nicholson@mta.org.nz
John Henderson
Auckland, Northland
SOUTHERN REGION
CHRISTINE LAMBIE Marlborough, Nelson, Canterbury, West Coast
PO Box 22 246, Christchurch 8142 Phone 03 379 6186 Mobile 0274 420 899 Fax 0800 000 695 christine.lambie@mta.org.nz
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RUSSELL LANE
MICHELLE FINDLATER
Phone 03 379 6185 Mobile 027 297 1722 Fax 0800 000 695 russell.lane@mta.org.nz
PO Box 8018, Glengarry Invercargill 9845 Phone 03 216 2682 Mobile 027 497 1568 Fax: 0800 000 695 michelle.findlater@mta.org.nz
Canterbury, Ashburton, South Canterbury, North Otago
radiator September 2013
Otago, Central Otago, South Otago, Gore, Southland
MICHAEL BRADLEY
FELICITY WILSON
PO Box 318, Feilding 4740 Phone 06 323 0522 Mobile 0274 402 617 Fax 0800 000 695 michael.bradley@mta.org.nz
PO Box 1003, New Plymouth 4340 Phone 06 753 0032 Mobile 027 220 5392 Fax 0800 000 695 felicity.wilson@mta.org.nz
Central/Southern Hawkes Bay, North/South Taranaki, Hawkes Bay, Feilding, Wanganui, Central Main Trunk, Manawatu, North Wairarapa. Taumarunui, Horowhenua,
IAN LAMONT
MARY-ANNE MARTIN
PO Box 9244, Wellington Phone 04 235 7380 Mobile 0274 430 289 Fax 0800 000 695 ian.lamont@mta.org.nz
PO Box 4475, Hamilton East 3247 Mobile 027 440 2618 Fax 0800 000 695 mary-anne.martin@mta.org.nz
Wairarapa, Wellington
Waikato, Waitomo
Branch Presidents Northland
Marc Head marc@wscas.co.nz
09-433 9759
Auckland
Stuart Wilson paptow@xtra.co.nz
09-298 0608
Greater Waikato
Terry Grimmer 07-855 2037 grimmermotorsltd@yahoo.co.nz
Tauranga
Sean Squires 07-544 0920 sean.squires@boppoly.ac.nz
Bay of Plenty
Ross Birchall 07-345 5442 ross@bmautomotive.co.nz
Gisborne/Wairoa Paul Corrin 06-867 6638 paul@cgmmotorcycles.co.nz Hawkes Bay
Grant Lower grant@stichautos.co.nz
06- 878 7700
contacts
> Auto Air Conditioning, Heating & Ventilation Committee Keith Webb (Board Rep) Wellington Quim Silva Auckland Michael Kelly Gore Dave Harwood Auckland Rodney Smith (Chair, Co-opted) Waikato Liezel Jahnke MTA Wellington Office
Paul Rushbrooke 07-895 8110 hondafirsttaum@xtra.co.nz
North Taranaki
David Cox david@rotech.co.nz
> Environment Committee
South Taranaki Wanganui
Brett Stratton 06-278 5756 haweramufflers@xtra.co.nz Mike Johnston 06-345 8339 holdawaysltd@paradise.net.nz
Ctrl Main Trunk Manawatu
Colin Fredrickson 06-385 4151 horopito.motors@xtra.co.nz Peter Morgan 06-355 4460 mainstreetautos@xtra.co.nz
Wairarapa
Mike Eastwood 06-377 0039 mike@eastwoodmotorgroup.co.nz
Horowhenua
Ken Shugg rahui@xtra.co.nz
Wellington
Phillip Saxton 04-939 4318 phil@saxtonautos.co.nz
Marlborough
Anna McKenzie 021 355 754 annatonymck@xtra.co.nz
Nelson
Paul Kelly pnkelly@clear.net.nz
03-970 0559
West Coast
Dave Larkin lbsc@xtra.co.nz
03-738 0029
Canterbury
Joris Sanders 03-366 3384 joris@leadingedgeautomotive.co.nz
Ashburton
David Stevens 03-308 6646 creekroadservice@gmail.com
South Canterbury Murray Kitchen mkskoda@xtra.co.nz
06-364 5198
03-688 5922
North Otago
Gary Gibson 03-434 6293 gibsonautos.oamaru@gmail.com
Otago
Kevin Offen kevsgarage@xtra.co.nz
Central Otago
Richard Smith 03-444 9365 cjsinclair.ranfurly@xtra.co.nz
South Otago
Wayne Eyles gwe@actrix.co.nz
Gore
Leslie Baxter 03-208 1234 leslie@carnabycars.co.nz
Southland
Terry McNaught 03-218 3051 highwayservices@xtra.co.nz
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radiator September 2013
03-455 9094
03-418 1348
09 415 8569 07 549 0675 04 293 7651 09 917 9417 03 208 4240 04 381 8817
david@supershoppes.co.nz tonysauto@xtra.co.nz woodmanauto@xtra.co.nz matt.rogers@asrl.co.nz rdkeeler@xtra.co.nz garry.williams@mta.org.nz
> Collision Repair Committee
Taumarunui
06-759 4370
keith.webb@xtra.co.nz aucklandcity@coolcar.co.nz mickelly@esi.co.nz northshore@coolcar.co.nz sikaseeker@coolcar.co.nz liezel.jahnke@mta.org.nz
> Automotive Technology Committee David Storey (Board Rep) Auckland Anthony Allen (Chair) Tauranga Owen Woodman Horowhenua Matt Rogers Auckland Russell Keeler (Co-opted) Gore Garry Williams MTA Wellington Office
Bob Boniface (Board Rep) Auckland Andrew Purser (Chair) South Taranaki Barry Meuli North Taranaki Alan Berry Christchurch Neil Butterfield (Co-opted) Wellington Bob McCoy MTA Wellington Office
Ctrl Hawkes Bay Paul Shanks 06-858 8086 pshanks@ruahinemotors.co.nz
04 478 2477 09 376 6691 03 208 1050 09 443 8025 07 849 6906 04 381 8843
Judy Lange (Board Rep) Southland Craig Murray (Chair) Auckland Ross Birchall Bay of Plenty Liezel Jahnke MTA Wellington Office
09 636 5463 06 278 8233 06 758 4085 03 366 9537 04 237 5898 04 381 8837
bob@rabon.co.nz mr.fix@xtra.co.nz bjmeuli@xtra.co.nz alan@atomicpanel.co.nz neil@autocrash.co.nz bob.mccoy@mta.org.nz
03 218 7149 09 294 8159 07 345 5442 04 381 8843
judy@a1autoservices.co.nz craigm_386@hotmail.com ross@bmautomotive.co.nz liezel.jahnke@mta.org.nz
09 360 3200 04 802 8750 07 578 6017 04 587 0005 03 433 0135 04-381 8827
mdavison@giltrap.com hjacob@capitalcityford.co.nz mikef@farmerautovillage.co.nz matthewf@brendanfoot.co.nz ceo@nomg.co.nz tony.everett@mta.org.nz
> Franchise Committee Malcolm Davison (Board Rep) Auckland Hamish Jacob (Chair) Wellington Michael Farmer Tauranga Matthew Foot Wellington Peter Robinson (Co-opted) Oamaru Tony Everett MTA Wellington Office
> Heavy Vehicle Advisory Group Keith Webb (Board Rep) Wellington Wayne McCurdy (Chair) North Taranaki Craig Murray Auckland Brent Ward Wairarapa Lloyd Heslop Nelson Merv Avery Manawatu Brian Sara Wellington Garry Williams MTA Wellington Office
04 478 2477 06 769 6506 09 294 8159 06 370 3818 03 543 9400 06 354 7164 04 495 2505 04 381 8817
keith.webb@xtra.co.nz delwyn@mccurdyeng.co.nz craigm_386@hotmail.com brent@waidiesel.co.nz admin@heslops.co.nz merv@transag.co.nz brians@vtnz.co.nz garry.williams@mta.org.nz
06 877 7621 07 571 3040 0274 574340 06 867 6638 06 357 7027 04 381 8827
richard@stratix-management.com info@bayride.co.nz henryplowright@gmail.com paul@cgmmotorcycles.co.nz kevin@cityhonda.co.nz tony.everett@mta.org.nz
> Motorcycle Committee Richard Punter (Board Rep) Hawkes Bay Lindsay Beck (Chair) Tauranga Henry Plowright Auckland Paul Corrin Gisborne Kevin Carian (Co-opted) Manawatu Tony Everett MTA Wellington Office
> Service Station & Convenience Store Dave Harris (Board Rep) Waikato John Patton (Chair) Waikato Ross Shadbolt Auckland Christopher Rawson North Otago Roger Bull (Co-opted) Hawkes Bay Liezel Jahnke MTA Wellington Office
027 474 8900 07 868 7090 09 296 5477 03 434 8798 06 870 8091 04 381 8843
dave@matamata.co.nz thamesA1@xtra.co.nz direct_imports@xtra.co.nz bp2gooamaru@netspeed.net.nz roger@csbgroup.co.nz liezel.jahnke@mta.org.nz
> Used Vehicle Committee Jim Gibbons (Board Rep) Wellington Leslie Baxter (Chair) Gore Ian Charlton Auckland Carl Doggett Canterbury Ian Humphrey (Co-opted) Manawatu Tony Everett MTA Wellington Office
04 384 9734 03 2081234 09 2630353 03 3778873 06 3555761 04 381 8827
jim.gibbons@colmotor.co.nz leslie@carnabycars.co.nz ian@advantagecars.co.nz carl@tcm4wd.co.nz sales@ianhumphrey.co.nz tony.everett@mta.org.nz
better business
Russell Holmes
Business Advisory Principal
9 ways to make your business more attractive for sale
ADVERTORIAL
How can you position your business to attract potential buyers. The decision to sell your business or bring on additional shareholders will be one of the most important decisions of your life. So how can you prepare your business so that it will be attractive to potential buyers? Here are 9 suggestions: 1. Have audited, or at least reviewed, financials for the prior three years. Validation of your numbers and processes from a quality accounting firm will greatly will help your sale and valuation. Most important, the buyer and potential lenders will have confidence in your numbers and company. This will save time, cost and potentially increase available leverage. Three years of review or audit isn’t required, but the more years the better. 2. Every dollar you add to profit increases valueso eliminate excess costs. Showing careful financial control—and maximum cash flow—can make your company more attractive to buyers. Ideally, you should give yourself at least a year to prepare your company before sale. Once you have made the decision to sell, you should look to eliminate any unnecessary costs you can. And don’t take a gradual approach: You may only get full credit in terms of a higher valuation for lower costs that have been in place for some time. 3. Be sure your stated objectives for the sale match your personal objectives. In the sale process, you are going to be telling your story again and again. Make sure that you are clear on the story you tell prospective buyers why you want to sell your business. If not, potential deal-killing issues can arise. 4. Have in place qualified leadership. Company leadership is one of the greatest concerns of most buyers. If you are not going to be there, a buyer needs to have confidence in those who are. The ideal scenario is if your company can grow and flourish without you there. 5. Have an actionable strategic plan that shows growth. Without question, the more potential a buyer believes your company has, the higher the valuation you will receive. If you have a believable, actionable strategic plan that shows significant growth, buyers will be excited. The important thing to keep in mind is that your plan should be both ambitious and reasonable. Buyers will be turned off if you present them with farfetched numbers or if you fail to acknowledge market realities. 6. Hit or exceed your annual budget, particularly prior to and during the sale process. This also is about buyer and lender confidence. If, during the sale process your company does not hit the numbers you said it would, they begin to doubt and second guess the entire transaction. If, on the other hand, you beat the
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radiator September 2013
numbers, they become afraid of losing the transaction and work harder to close as quickly as possible. 7. Don’t be your company’s best salesperson. A typical weakness of entrepreneurial companies is a lack of sales talent, other than the owner, not to mention the lack of a formal sales strategy. If your company has a sales department that can close deals and increase revenue while you are busy with other things (or on vacation, for that matter) investors will have much more confidence in your plan. 8. Bring in experienced professional counsel. Professional advisors with experience in the field of entrepreneurial deal-making will help you conduct efficient negotiations. They should know the issues to fight over and those that don’t matter. Your existing professional advisors may not have sufficient experience. 9. Be patient. Identifying buyers and concluding a sale will almost always take longer than you would like. Be mentally prepared for a long and winding road paved with challenging offers and varying degrees of negotiation.
WHK recently changed its name to Crowe Horwath. It has been over 15 years since WHK Group started. In that time we’ve grown to become the leading provider of accounting, tax and advisory services to business throughout New Zealand. We have more access to high quality tax advice, business advice and accounting services you can depend on. We can support you better as you seek ways to prosper. You can find more on our website at www.whk.co.nz/opportunities.
classifieds
FREE for MEMBERS ONLY plus inclusion to MTA website (Member Number required/maximum 30 words) Non Members $15 plus GST for 30 words BOLD IT only $5 extra. EXTRA WORDS $1 per word. email to radiator@mta.org.nz
PARTS/EQUIPMENT FOR SALE
BUSINESS FOR SALE/LEASE
WHEEL SERVICE EQUIPMENT Tyre balancers, Tyre changers for automotive and truck use, Wheel alignment systems, side slip testers. Ph: Sulco Equipment 0800 800488 www.sulco.co.nz TRANSMISSION FLUSHERS Air conditioning service equipment, Sulco Equipment has new, used and ex demo. Ph: Sulco Equipment 0800 800488 or www.sulco.co.nz TULMAC CARBURETTOR SPECIALISTS Full reconditioning service, carburettor body re-bushing and shafts supplied. Specialising in Weber, Dellorto, Su Stromberg etc. Ph: 027 612 2312 or 06-368 2202 Levin. BEAMSETTER – (Headlight Aligner) New, plus other WOF equipment. Phone Stocks Equipment on 0800 863 784 or email: equipment@ georgestock.co.nz BRAKE LATHE. New Caorle Brake Lathes. Made in Italy. On & Off Car. Phone Stocks on 0800 863 784 or email: equipment@georgestock.co.nz BRAKE TESTER - New MAHA roller brake testers. Phone Stocks Equipment on 0800 863 784 or email: equipment@georgestock.co.nz. CAR HOIST – BRAND NEW 2 POST HOISTS available from only $3,495 + GST installed. Also 4 Post Hoists, Wheel Alignment Scissor Lifts, Belly Lifters also available. Ph: Stocks Equipment 0800 863 784 email: equipment@ georgestock.co.nz TYRE CHANGER & WHEEL BALANCERS. New & Used Tyre Changers. Stocks Equipment 0800 863 784 or www.georgestock.co.nz WHEEL ALIGNER – HUNTER. New & used Wheel Aligners, Phone Stocks Equipment on 0800 863 784 email: equipment@georgestock.co.nz TOYOTA GENUINE CYLINDER HEADS from $650.00. Timing Belt Kits from $118.00 1KZTE Solid Flywheel Conversions $700.00 Prices excl GST. Ph 07-578 9889. TOYOTA AUTOMOTIVE DIAGNOSTIC SCOPES PC based, extremely powerful and easy to use. phone Chris at Metermaster NZ Ltd 09-296 7601, 0800METERS or 021 953 129. Seat Belt Mounting Plates Buy direct from the manufacturer. Quality plates and extensions at good prices. Prescott Engineeering Ltd, 7 Prescott St, Penrose. Ph 09 579 7424
SERVICE STATION, SHOP, CAFE & WORKSHOP FOR SALE 10 year Gull NZ contract for fuel. Turnover averages $7,500 per day, 3,500 litres per day. Own fibreglass tank holds 60,000 litres. Also with 3 bedroom house on total 2,000m2 contact Bruce Thomas 07 333 2300. 6457 State Highway 1. RD1, Atiamuri. DYNO TUNING AND FULL WORKSHOP A rare opportunity to purchase a well established workshop in Hamilton. Excellent location, WOF and repair workshop, including an always busy 4x4 Chassis Dyno setup. Established and loyal customer base and business includes extensive plant list. Contact Steve 0274 845 483. Established Automotive Repair & WOF workshop. Good location, North Shore, Takapuna. Four working bays, two hoist, brake roller tester, ample parking, great potential. $79,000 ONO. Ph Ash on 021 163 8560. LOWER HUTT. Small, well established (23 Years) Automotive Workshop, specialising in European cars. Fully equipped business with latest diagnostic equipment. Loyal customer base. Ph 0275 374 838. full workshop and service station located in Tahuna. Successful business which has been trading for over 55 years. Lease $500 per week. Contact Roy 07 887 5742. Automotive business for sale, Canterbury. Est. 11 years. modern premises and equipment WOF authority 700k plus t/o great opportunity, write PO Box 16288 Hornby Christchurch 8003. BUSINESS/INVESTMENT STATE HIGHWAY 1 HAMILTON. Long established auto workshop. owned for 37 years. Fully equipped 3 bay plus secure area can be leased out separately or used as car sales area. Look at lease. Rent to buy, all options open. Phone Dennis ah: 07 846 4200. Mechanical workshop Dismantling yard TE AWAMUTU waikato Established, good customer base WOF. mechanical repairs, with dismantling forklift, tyre machine, computer network. Workshop and stores, large pit, 2.5 acres industrial property with 3 bedroom house, flat land can be subdivided. Ph 07 871 3449
23 Bruce McLaren Rd Henderson Auckland PH 09 837 8692 Toll Free 0800 214 604 info@gdcequipment.co.nz
Automaster Italy WB277 Wheel balancer $3995* From $24+ per wk
All equipment is available through
By
Automaster Italy WB377 Wheel balancer $4450* From $29+ per wk
Automaster Italy TC525PG Tyre Changer 12-24” $4395* $5995* with tecnohelper
Automaster Italy TC528IT Tyre Changer With Tecno helper 10-28” Air Blaster
Automaster Italy Tecno helper arms
$7995* from $48+ per wk
Automaster Italy Leverless device Upgrade kit $2495*
WHEN ITS COMES TO VALUE FOR MONEY WE WILL NOT BE BEATEN!! Double S column design
Automaster AM-6246R 4500KG Clearfloor 4x4 adapters $3750* From $23+ per week NO DEPOSIT
3D Alignment Machine & Hoist Combo's
Tool trays on each arm
From $133+ per wk no deposit
Remote control Columns posioned either symmetrically or asymmetrically
RED or BLUE hoists available
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radiator September 2013
Can’t do that cambelt job? www.alleuroparts.co.nz
09 425 5023
1236 AEP
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• Simplify your W.O.F. manual • Audit/Review preparation
Ph: 021 2777 228
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radiator September 2013
X431 PAD $6,500 +GST • Large 9.7-inch touch screen, high speed 1.6GHZ processor • Wireless Bluetooth to vehicle. Full internet Wi-Fi interface (Email and Google) • Data recording, storage and playback • Secure Digital (SD Card) expansion port • High definition multimedia interface HDMI • Unit size L307 x W214 x H67mm and weighs only 3kg
● CPU --- 400 MHz ARM9 ● Color Touch Screen --- 480X272, 4.3” ● TF card--- 1G ● Upgrading/Printer Interface--- USB ● Wireless communication Module --Bluetooth ● USB --- Standard USB 2.0 Ports ● Working voltage of diagnostic adaptor: DC 12V (DC 24V not yet supported)
X431 Diagun III $2980 +GST
ENGINE WAREHOUSE - Prices to the trade - Trade warranty Includes parts & labour
MTS Headlight Aimer NHD-8000 $950 +GST Luminous intensity: 0~60,000cd Optic axis deviation of high beam and low beam Up - Down: U 1° 30’ (U 20cm/10m~D 40cm/10m) Left - Right: L 2° 30’~R 2° 30’ (L 40cm/10m~R 40cm/10m) Luminous intensity of high beam: ±12% Optic axis deviation of high beam: ±12’ Luminous intensity of low beam: ±15’ Central elevation of headlight: ±1cm
Most transmissions to suit.
AUDI, BMW, RANGE ROVER PEUGEOT, CITROEN
NZ’S ONLY OEM BONDING MACHINE 12 MTH WARRANTY
NEW ZEALAND WIDE - WHOLESALE ONLY Warehouses in Auckland, Christchurch, Geraldine & Invercargill
FREE PHONE 0800 80 90 96
Over 1000 units in stock.
DASH CLUSTER REPAIRS EUROPEAN LCD DISPLAYS
-Prices to the trade -Excellent profit centre for tyre shops & garages -Quality brands -Second hand & budget tyre options
ALSO REPAIRS TO ECU’S, AIR FLOW METERS MISC COMPONENTS
0800 - GET IT FIXED repairs@getitfixed.co.nz AUTOMOTIVE
GET IT FIXED !
FREE PHONE 0508 252 477 Email: blairs@blairs.co.nz www.blairs.co.nz
ELECTRONIC REPAIRS
Email: blairs@blairs.co.nz
www.blairs.co.nz
07 549 5475
Keep your customers coming back for all the right reasons. Use genuine Volkswagen, Audi, Skoda and Porsche parts from the only authorised dealer network – Genuine Parts Direct. With over 70,000 items in stock and outlets nationwide, every part we supply is competitively priced and purpose-built at the factory. They’re safer, longer lasting and feature a two-year manufacturer’s warranty for total peace of mind.
Genuine Parts Direct
0800 223 221 EMD0042 NZ Rad 180x60.indd 1
Commercial Vehicles
WORKSHOP SOLUTIONS TRAINING COMPANY “Inter-active learning 4 practical people”
WOF AVI pre exam coaching WOF Update courses, full or half day theory and or practical training PRS management coaching (Training & coaching for individuals or groups)
WORKSHOP SOLUTIONS 2009 LTD WOF & PRS CONSULTANT Assisting in and managing your PRS Records Annual and Pre NZTA PRS audits Practical WOF inspection assessments
Philip Tutty M: 021 843 000 Ph: 07 856 3536 E: philip@workshopsolutions.co.nz 77 •
radiator September 2013
7/03/13 9:17 AM
To advertise in
the auto exchange please contact
Cathy La Ville on 09 413 8577 or 022 531 1638 email: cathy.laville@mta.org.nz
Competitively priced European car parts
BMW/MINI PARTS Engine - filters, gaskets, seals, tensioners, idlers, belts, camkits Brakes - disks, pads, shoes, cylinders, hoses, sensors, accumulators
30 years experience with Euro parts
Suspension - arms, bushes, balljoints, links, shocks
Steering - racks, hoses, tierods, trackrods, universals
• • • • •
Cooling - waterpumps, thermostats, radiators, expansion tanks, hoses, hose fittings, viscous fans, heater valves
ELECTRICAL - ABS/cam/crank sensors, airbagmats/wiring, fuel/washer pumps, sliprings, fan resistors, ignition locks, window regs
Audi/VW Saab Mercedes BMW Volvo
• • • • •
Peugeot Porsche Alfa Renault Fiat
For anything Euro try us first!
Ph: 04 471 2755 Mob: 021 618 9734
BM WORKSHOP
partsplus@partsplus.co.nz Overnight delivery
Ph: 09-376 1250 Fax: 09-376 1283
POWER STEERING PROBLEMS? Call the Specialists for
RING SPE CI
ISTS
POWE
EE ST
AL
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(estab.1964)
• Fast, efficient service • No-obligation quotes • NZ’s largest range of tested exchange units • Passenger & Commercial • All makes of vehicles
Ph: 09-524 6519
AU
CK LA N D
Email: airflo@xtra.co.nz Fax: 09-524 6363 www.airflohydraulics.co.nz
9 Alma Street, Newmarket, Auckland cyan magenta yellow started on 24/06/2009 14:54:45
NZ’s largest range of replacement cylinder heads • Bare & Complete Kits • Valves, Camshafts, Lifters & associated parts • Gaskets & Bolts North & South Island Warehouses/Overnight delivery 12 month Unlimited Km Warranty (Inc Parts & Labour) Quality & Reliability Guaranteed 78 •
radiator September 2013
Ph: 0800 549 429 www.kiwicylinderheads.co.nz 31 Carbine Road, Mt Wellington, Auckland 1060
black
Radiator NEW ZEALAND
OCTOBER 2013 FEATURES WHEELS & TYRES WHEEL GEOMETRY & WHEEL BALANCING
IMPORT • EXPORT • DISTRIBUTION
Mazda
Toyota 1KZ SV 1KZ LV 2L/3L/5L 2C/3CT 3Y/4Y 1AZ/2AZ 1KD/2KD B/2B/3B
Nissan
WL/WLT WE FE-F2 FE-F8 NA G6 RF R2
H/2H 1HZ 14B/15B 1RZ/2RZ/3RZ 3S/5S
ZD30 TD42 TD27 YD25 TB42 QD32 NA20 SR20
RD28 Z20 Z24
Mitsi
ISUZU
4D56T 4G54 4M40T 4M41T 4G63 4G64 6G72 6G73
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CHEVY - 350 ROVER - 300TDI DAIHATSU - DL BMW - 323i
Cylinder Heads • Gaskets • Pistons • Valves • Head Bolts • Cylinder Head Assembly • Engine Parts
Distributed by BNT Nationwide
•
Toll Free 0800 422 634
th! n o m t x e n s i y MTA Get Awa
It’s not too late to register! www.mta.org.nz/getaway2013
MTA Get Away 2012 in
Queenstown was a
Queenstown was one
fantastic weekend away
awesome weekend. A perfect
to catch up with others in the
mix of work and fun in a relaxing
industry. Great accommodation
format. The surroundings and
and lovely food. The trade stands
events made the experience 100
at the market place were really
percent enjoyable. We can’t wait for
done well. Great time had by all.
Get Away 2013 in the Bay of Islands Mike and Jo Gould,
Lisa Fox,
Mike Gould Suzuki, Timaru
Mosgiel Towing, Mosgiel
79 •
radiator September 2013
•
www.acmeimpex.co.nz
We’re excited about seeing so many of you in the Bay of Islands next month (18-19 October 2013). We’re looking forward to relaxing with you, having some fun, learning some new things and making some great memories with you as we celebrate and reward the best of MTA. It’s not too late to come, so if you’re thinking of attending, check out our full programme here: http://www.mta.org.nz/getawayprogramme Our user pays Saturday afternoon fishing charter (well, our flotilla) still has plenty of room come and join us for an afternoon on the high seas with plenty of snapper! Kindly sponsored and supported by:
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