Autofile - March 20 by Autofile

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Issue 5-2014 20 March 2014

Kiwis cross ditch for used import talks

In this issue

epresentatives from New Zealand’s automotive industry have gone across the Tasman to share advice and experiences with the Australian government. The impending closure of the new vehicle sector there and the birth of its replacement, which may see border restrictions on used imports lifted, could spell mixed fortunes for business here. Ford, Holden and Toyota are pulling the plug on making cars in Australia between 2016 and 2017. The government has refused to

p19 Proof onus on buyers

extend subsidises to the industry – in size and timeframe – while the manufacturers say production and exchange rate costs have made their factories untenable. The Productivity Commission has backed Prime Minister Tony Abbott’s stance and believes the “policy rationale for prohibiting the large-scale importation of secondhand vehicles is weak”. It’s now seeking more information on the benefits and costs of removing Australia’s border barriers and is due to soon publish a second report on the way forward.

Whatever decision is made may be years away, but there are implications for the used vehicle sector in this country. Changes could signal substantial opportunities for Kiwi and Japanese companies already operating in Australia, and in shipping and logistics. The main downside is importers here facing more competition for Japanese stock, while extra demand from a country with about five times more people than New Zealand could inflate auction prices in Japan.

during a check by HPI Ltd, the UK’s used vehicle information authority. Autoport’s inspector went to the dealer’s yard and realised the UK’s national mileage register had its odometer on 4,846 miles – equivalent to 7,800km – on October 31. Island Auto Traders, previously listed as Chivvy Ltd, had stated the reading was 1,000 miles and when

p14 eCall mandated in EU p15 4C’s European launch p16 Rules on used imports

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Warning issued over UK dealer

sed car importers in New Zealand are being urged to avoid trading with a seller in the UK after it tried to offload a clocked vehicle. Autoport’s online trading platform was put to the test when a dealer in Auckland bought a 2013 Audi Q7 S-Line Plus. The problem was picked up

p12 Focus on Greymouth

inspected the odometer had 1,256 miles on it. Staff at Autoport’s office in the England contacted British Car Auctions (BCA), which confirmed the vehicle was sold in September at 4,500 warranted miles, so no mistake was made by the register. Autoport, which was holding the buyer’s money in trust,

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Look once, look twice, think bike form of transport at the age of 29, which was 12 years after starting out on two wheels. While owning a Honda CG125, then a CB400F Super Sport and a Kawasaki Z1100 A1, the question was always “what’s that driver going to do”. After some tumbles in London and escaping with friction burns, the final chapter was written on a back road in Somerset one day at about 8.30am. A car was parked up ahead in a layby. After slowing to 80kph and moving into the centre of the road, the driver – without looking or any warning – threw a U-turn. Heading straight at the driver’s seat, an attempt to clear his rearend failed by a few centimetres. This resulted in a front-end writeoff. The injury list included fractures, ligament damage, whiplash, cuts and bruises, and severe shock. After coming around and realising death’s door wasn’t quite opening this time, concern for the bike dissipated as remonstration with yet another ignorant motorist proved too much. That incident ended the “serious biker days” and it’s been cars since, although many people still tend to comment on my “riding” instead of “driving” skills. When your confidence is shattered – and your body, or life, escapes the same fate – it’s often best to call it day. It’s good to see our Motorcycle Safety Advisory Council recruiting three new members as reported in this issue of Autofile. It is progressing projects to cut accident rates and its work should be praised. But we all need to realise how fragile life is and “look once, look twice, think bike”. Darren Risby, editor

Editor

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

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hen it comes to in-vehicle safety, few people will argue against the case for electronic stability control. And take a moment to ponder the plethora of rules that have been imposed on the automotive industry – some of which, since the advent of used imports, are covered in this magazine. But there’s one thing that’s impossible to completely regulate and that’s human nature. And as “intelligent” systems take over, will people be less able to drive “properly”? After all, people make mistakes. Education and technology can only achieve so much. When we get behind the steering wheel or handlebars, we’re armed with deadly weapons – as was highlighted from March 8-9 when six people died in accidents. On the Saturday, a 68-year-old vintage car driver died at Hampton Downs, a biker was killed in a crash with a truck near Matamata and seven-year-old died after being hit on the driveway of a Southland home. The next day, a 59-year-old biker died at Carterton’s Cliffhanger event, one person was killed after a head-on crash near Te Puke and another motorcyclist died after a vehicle collision near Ngaruawahia. The police have described some of the recent tragedies as “avoidable” and are urging people to focus on prevention. When it comes to motorbikes, they need to match riders’ abilities rather than ambitions and highvisibility gear should be a must. Many modern bikes have safety systems and can accelerate faster, but riders tend to complete more training than car drivers, and deadly situations can arise at intersections. Bikes stopped being my primary

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news [continued from page 1]

Japanese supply may be hit The Imported Motor Vehicle Industry Association (IMVIA) has already been contacted and interviewed by the Productivity Commission on Australia’s way forward. Chief executive David Vinsen and Graeme Macdonald, chairman of the North Island executive, have flown out to meet state and federal government officials, staff from its equivalent of the Ministry of Transport and motor vehicle industry leaders. They include the director of regulatory reform policy at the Department of Infrastructure and Planning. Vinsen told Autofile: “They have sought our advice and recommendations. We have taken the opportunity to say yes and go across because we didn’t want to shut the door and say we aren’t interested.

“The authorities there have an open mind at this stage on how things will evolve with Australian car manufacturers pulling out and they seem interested in learning from New Zealand’s experience.” The Productivity Commission’s position paper mainly focuses on the end of car production there, with it calling for a measured approach to developing assistance plans for the industry and its employees. Its deputy chairman, Mike Woods, stresses that government policies and programmes should aim for a stronger economy “at the end of the journey”. But the report identifies the restrictions on importing used vehicles through the Motor Vehicle Standards Act 1989. “These restrictions impose costs, including potentially

increasing the prices of secondhand vehicles and reducing consumer choice, which may exceed the benefits,” it states. Clair Angel, of Australia’s Productivity “The rationale for such a Commission, told Autofile its position paper on the country’s automotive policy is weak.” manufacturing industry will be delivered to It stresses measures are the government at the end of the month. needed to ensure consumer It should be released within 25 protection, community parliamentary sitting days and the safety and maintain government is required to produce environmental performance a response to it. The commission has invited submissions to its draft standards before restrictions findings and held further public are removed. hearings last month. “These concerns are best dealt with through regulatory standards applicable to all vehicles sold in benefits and costs of removing Australia,” the report adds. restrictions on the large-scale “The $12,000 specific duty on importation of used vehicles, imported second-hand vehicles including: appears to be largely redundant,  Potential benefits of scrapping providing a prima-facie case for restrictions. its removal.”  Costs of removing them and The commission is now  who pays. seeking more information on the

Looking ahead

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news 

 How to ensure compliance with

safety and green standards.  How to remove restrictions and the timeframe. Vinsen stresses Australia’s population is about five times New Zealand’s and last year it imported about 11,000 used cars compared to 100,700 here. However, the fleet across the ditch is younger because of new car sale levels so he thinks there will be opportunities in the higher end of the lucky country’s market. “Australia is now looking at importation procedures and entry certification in New Zealand, so hopefully they don’t have go through the legacy we endured.” He says opening the market to used imports would provide supply-chain businesses here and in Japan with opportunities, as well as for entrepreneurial Kiwi importers looking to work with Australian counterparts. “The concerns include a likely increase in competition for our supply market, but the Australian market is more likely to source higher-end vehicles,” Vinsen says. “There are embedded inefficiencies in their system and some would need to be stripped out, such as subsidies on imports. “What their market will be able to source will depend on standards and specifications. It could be phased in over a number of years, but we don’t know what they will do yet. “We can help them make decisions on common standards, specifications and procedures, help our sponsors and service providers, and identify opportunities for New Zealand importers. “But we do need to be mindful about the competition to supply. We have the 16 to 18-year-old vehicle bubble working through our system that will need a lot of replacing over the next two to three years. “We will continue to work with our sponsors and service providers, and we’re pleased with the progress to date.”

VEHICLE LOGISTICS VIEW AUTOHUB, which pioneered one-stop vehicle deliveries to this

country, is already operating in Australia where its door-to-door service is on a “solid basis”. Managing director John Davies told Autofile it’s the company’s intention to stay there – and see how and when the market opens up. He’s not expecting a flood of used imports going into Australia if and when barriers come down or are relaxed.

highlights challenges for any expanded used imports industry there as being around legislation and the ports. “It’s crazy that you can get two cars into a container, ship them to Australia and get them through Customs only to find that moving 50 metres across the port is more expensive,” he says. “Government bodies have a

vehicles to cross the border will need to be opened up when volumes are reviewed. “Until the government stands up and commits itself, it will always be a struggle to operate in that market,” says Davies. “It will also have to recognise other jurisdictions’ regimes – such as those in Japan, the US and Europe – in addition to the

“The government will have to recognise other jurisdictions’ regimes in addition to Australian Design Rules.” – John Davies “AUTOHUB’s role is consultancy and advisory at this stage, and the Australian government is talking to our government to see what the options are,” says Davies. “We’re there in a consultancy role, checking documents and so on – but not pushing for decisions.” If the Australian market was opened up, it could be similar to our standards-based approach – around electronic stability control, for example. “We will not see a massive increase in volumes going to Australia. It will be more like a gentle loosening of the reins over the next two to five years.” Davies says there is yet to be any indication on which way Australia will go, so it’s speculation at the moment. “The government has still to decide yes, and then set up a working panel to discuss the rules and regulations. “There’s a chance it could go back and fund the new vehicle industry over there, but I doubt that very much. “When local manufacturing stops, there should be some jobs on upcoming used imports to replace those lost. “However, that’s a matter for the industry. There’s only so much we can do, except for meeting people and being listened to.” AUTOHUB would be comfortable with a slow increase in business in Australia, but Davies

monopoly on the ports and in some cases this doubles the price of the product being imported. “It will need to investigate port charges and compare them to the rest of the world because they’re very high.” The permit scheme for

Australian Design Rules [ADR]. “Overseas standards will have to be recognised as well, so the biggest hurdles will be legislative. “Also, it would be nice if Australia had an imported motor vehicle body like we have in New Zealand because no one over there is driving [continued on page 6]

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news [continued from page 5]

Legislation is central to changes

change. They could do with a panel and do some lobbying.”

government, which involved work with DAFF on robust systems. Euan Philpot, chief executive officer of JEVIC NZ Ltd, says the company is getting volumes into Australia for the services it provides and continues to see increasing numbers. “The implementation of this service has gone well,” he told Autofile. “We are continuing to work on other markets from where we can offer similar services for Australia and New Zealand.” Philpot says the indications it has had back are that the authorities are happy with its processes. “As a result of how well it has gone for JEVIC in Australia, companies there have been approaching us for other cargo to be pre-cleaned and pre-checked for importation, and we expect to see growth in this area over time.

INSPECTING USED IMPORTS Another company already exporting its expertise to Australia is JEVIC, which was the first in the world to be approved as an offshore treatment provider for the pre-inspection and pre-cleaning of used vehicles from Japan. The Department of Agriculture, Fisheries and Forestry (DAFF) used to accept cargo pre-inspected by New Zealand’s Ministry for Primary Industries (MPI). But when the MPI reduced staff numbers in Japan, this presented JEVIC with an opportunity to expand and announce the new venture across the Tasman in July 2013. The company worked on it for a number of months with the

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Euan Philpot, of JEVIC NZ Ltd, says the company continues to see increasing business into Australia for its services

“Our vehicle cleaning and inspection service has seen business increasing since we started it. “This is reflected in an increase in growth in our market share of the volume of vehicles exported from Japan to Australia. “What we do for this market is on the same platform as for New Zealand. There are different inspection criteria, but we’ve been able to easily bring Australia into our mainstream business.” Philpot says JEVIC is inspecting a spread of makes and models in Japan and there has been noticeable interest in campervans, while “we will inspect and pre-clean any cargo destined for Australia”. Looking to the future, the company is well-positioned to cope with any increase in services to the lucky country. It’s a matter of meeting the authorities’ requirements and JEVIC will be able to keep up with volume. The lifting of restrictions on used imports entering the country “has a long way to go”. Philpot stresses: “The opening of the market in Australia will require a lot of legislative changes. We’ve got to get to that point first, but JEVIC will be well-positioned when that happens. “JEVIC is continuing to build solid relationships as a private company with all of its customers and stakeholders. “Driving factors will change the market there and it all depends on the degree of any changes.”

He says there are sizeable differences about the market in Australia and distinct drivers, such as how laws are agreed and implemented. “On the legislative side, state and federal departments need to look at what’s acceptable,” explains Philpot. “It’s too early to predict what will or will not happen, but supply feeders and providers have to keep their eyes on the ball and watch out for what’s happening in Australia.”

DEMAND FOR SHIPPING If the deregulation of the market for used imports going into Australia does happen, “it’s going to be big news for the shipping industry”. That’s the view of Blain Paterson, general manager of Toyofuji Shipping NZ Ltd. He says: “If Australia imports one million units a year, I can envisage 400,000 of them being new vehicles and 600,000 being used, and our guys starting to open offices over there. It will affect trade here.” Paterson is attending a company meeting in May to discuss the ramifications expected from the market opening up and “to see what our future plans would be”. He says: “If we carry 3,000 used cars per ship to Australia and there are 26 ships per year, that’s 78,000 used units for them to choose from but I wouldn’t expect them to select the same stock as New Zealand. “I think the Australians would be a lot stronger on what’s imported than us because they wouldn’t want to lower their fleet’s age. “As they only really import new and not many used vehicles at the moment, I would expect a tougher regime – more like a three-year rule than seven years.” Paterson suspects the government may make no changes until local car manufacturing ends, while shipping and logistics businesses will be gearing up for barriers do drop because they are “experts in their fields”. There will be more analysis on markets, shipping and logistics in the next issue of Autofile

news

Removing barriers for trade A

ustralia’s Productivity Commission says restrictions on used vehicles – and particularly barriers to large-scale importation – reduce competition in its marketplace. It says experience from New Zealand suggests used imports may have put downward pressure on second-hand prices while boosting consumer choice. The commission expects the removal of the “unjustified restrictions” to benefit the community. “But this doesn’t mean there should be unregulated entry of all used imported vehicles,” it warns, while a lag between announcing policy changes and implementation may be needed to ensure regulatory arrangements are in place. “Further consideration – particularly the timing and advanced notice of such changes – should be given to individuals and businesses that have made investment decisions under the existing framework,” the report states.

IMPORT RESTRICTIONS In addition to the general five per cent tariff on all automotive imports, second-hand vehicles are notionally subject to a specific customs duty of $12,000. But after changes to the Motor Vehicle Standards Act 1989 in 2000, this duty is “essentially redundant”. Cars cannot cross Australia’s border without a vehicle import approval and importers may claim exemption from the $12,000 duty if they obtain this prior to importation. Used vehicles may also be exempt from the duty under other concessions detailed in Customs’ tariff. For example, concessional arrangements can apply to vehicles more than 30 years old, or those exported from and then returned to Australia. Based on a sample of imported second-hand vehicles from March to November 2013, about 98 per cent were granted concessional treatment under schedule-four provisions.

A VF Commodore at Holden’s factory in Elizabeth, South Australia. With the marque, Ford and Toyota pulling the plug on new production, restrictions on used vehicles there may end

The rest didn’t seek concessional entry under this schedule, but might have received it under other tariff provisions. “The effective barriers to importing second-hand vehicles arise from the process of, and requirements for, obtaining a vehicle import approval rather than from the specific $12,000 duty,” says the report.

“Imports grew strongly and, most of all, imports of second-hand vehicles,” it says. “By 2002, used imports represented about 68 per cent of all registrations compared with ‘well less than 10 per cent’ before 1986. “Most of these used imports were from Japan, which supplies a large international market as a result of its car registration system.”

In Japan, new vehicles are sold with a three-year fitness warranty. The costly and time-consuming process of renewal results in many consumers replacing their cars after three years. It has been reported that used imports from Japan “gave New Zealanders access to well-priced, late-model cars, further increasing the country’s high level of car ownership”. A survey in 2011 of prices for second-hand Toyota Corollas – the 2006 automatic hatchback model – in Australia and New Zealand found cars of similar mileages were about 20 per cent cheaper here than across the ditch. The data was taken from online car adverts, so might have differed from actual sale prices, and the limited sample size consisted of five observations of this model in each country.

REGULATIONS IN PLACE The Motor Vehicle Standards Act 1989 (MVSA) regulates the importation and supply to the Australian market, and the government is already reviewing some legislation. Although there are several ways for used cars to be imported into Australia, there appears to be no pathway to import significant numbers of recently built secondhand units that would meet Australian Design Rule standards. Under the MVSA, applications for approval for a used import plate – or to supply to the market a used import without such a plate – “can only be made in respect of a single used imported vehicle”. The Motor Vehicle Standards Regulations 1989 also ban automotive workshops from importing more than 100 used units in each vehicle category in a 12-month period.

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THE KIWI CAR MARKET The commission says New Zealand reduced its vehicle import tariffs from the mid-1980s, and removed tariffs on passenger and light commercial vehicles – excluding motor homes and ambulances – in 1998.

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news [continued from page 1]

British car dealer gets blacklisted immediately cancelled the transaction, returned the Kiwi dealer’s purchase price and worked with the importer to source a suitable replacement vehicle. The company has since established the would-be supplier in England had been exporting cars to this country for some time and is thought to have a large database of buyers here. David Paviour, director of Autoport, told Autofile: “There are a host of checks we carry out on used vehicles overseas and there are some add-ons for UK stock. “We also look at the vehicle’s previous MoT – the UK’s equivalent to the warrant of fitness – because the mileage is recorded on it and we have the engine visually checked. “The clocking of any car can be an issue and it doesn’t matter where it happens, but this is one of

Trans Future 7

the areas our system picks up on before vehicles being purchased by Kiwi dealers are shipped here. “The used import business from the UK is still immature compared to Japan and it seems our government puts the heat on compliance guys, but our systems are robust enough to deal with all this.” Lachlan Wilkinson, Autoport’s New Zealand sales manager, says: “The problem with this Audi was initially picked up by looking at the engine bay around the speedometer. “It had previously been sold at auction and we picked that up at BCA, while HPI checks can establish

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Top: David Paviour, Autoport director; above: an Audi Q7 S-Line similar to the one that was clocked

if vehicles have been clocked.” Autoport’s office in the Hampshire contacted Nic O’Neil, of Island Auto Traders, to investigate the problem but its calls went unreturned. “We would have told him he’s being blacklisted if we spoke to him,” says Wilkinson. “We understand he has been selling cars for a while, which is a concern to dealers here. “This case does, however, show how secure processes can pick up this sort of thing. “As we hold dealers’ money in trust, this importer’s funds hadn’t

gone straight to the supplier. He had the cash back in his account within 48 hours – that’s how long it took to unwind the deal.” Autoport’s verification process includes using a micrometer to check the thickness of the paint to find out, for example, if any panel work has been carried out. HPI checks in the UK ensure cars have no outstanding finance, haven’t been stolen or written off by insurance companies. Vehicles that have been stolen there, or have outstanding finance, can be repossessed without compensating the current owner. If an insurance company has written off a car after an accident, it may not have been safely and legally repaired. The HPI check also offers a guarantee, valuation and mileage information. It consolidates data from the Driver and Vehicle Licensing Agency, police, financiers, insurers and industry bodies. It includes verifications with the national mileage register, which holds about 150 million records, and its investigations service includes contacting previous owners to check odometer readings. The service, which is unavailable to the public, can demonstrate a dealer has met its duty of care under the UK’s Sale of Goods Act and the Consumer Protection Regulations.

Reputable companies

he managing director of AUTOHUB says service records, MoT documents and other verifications are carried out on vehicles its ships from the UK. John Davies told Autofile: “All of the stock is ex-lease company with service histories, or bought to order from franchises, and we don’t deal with small traders. “We haven’t had one

instance of clocking in three years, but being primarily a shipping service it’s up to our customers – and not us – what they buy.” Davies recommends buyers use reputable supply companies and avoid one-off suppliers because “you generally get what you get with them” while “it’s up to our customers, not us, to blacklist dealers”.

news

Give views on safety system

he government is calling for public submissions on its plans to make a safety system mandatory on imported vehicles. Michael Woodhouse, Associate Minister of Transport, announced the intention to bring in compulsory electronic stability control (ESC) last month. Now the NZTA, with the Ministry of Transport (MoT), is seeking feedback on legislative changes needed to make this happen. ESC’s proposed roll-out will start with a July 1, 2015, deadline for new light passenger and goods vehicles. Next up will be used class MC vehicles – including four-wheeldrive SUVs – from January 2016. The cut-off for used class MA cars with engines bigger than two litres will come two years later. The last deadline is January 2020 for other used light passenger and goods vehicles, as reported first online at www.autofile.co.nz. The industry is broadly embracing the proposals, but the used imports sector is hoping its cut-offs can be pushed out to safeguard supply and the new vehicle sector wants the deadline for light commercials delayed. David Crawford, chief executive officer of the Motor Industry Association (MIA), says: “We welcome the introduction of ESC on the light commercial fleet in addition to it on passenger and SUVs. “However, the ability for distributors to supply light commercials with ESC depends on timing and, as a country, we are rarely ahead of international timeframes. “There’s a high penetration of ESC rates with cars. But in light commercials this hasn’t really happened. Affected models are at the cheaper, middle and upper end of the market.” Crawford says what’s happening in Australia is consistent with Europe and if there’s no manufacturing for our market ahead of their timeframes, this will hit supply. “An approximate estimation of the value of affected vehicles

that would no longer be able to be sold if the draft rule isn’t amended is about $400 million in sales per year,” he told Autofile. “It takes time for factories to effect changes, such as ESC, because it is part of the chassis design and that requires three years’ planning.

which says a “phased implementation with plenty of warning” will make it easier for importers. He believes staggered deadlines for different classes will enable the fastest possible uptake of ESCfitted vehicles without impacting on the industry too much.

specialist and used stock more than 20 years old will be exempt. NZTA and MoT research indicates that if ESC is mandated here, it could save 22 lives, prevent 102 serious injuries and prevent 400 minor injuries over the next 20 years. The Land Transport Rule:

“I’m open to changes if we can prevent difficulties in the market with minimal impact on safety.” – Michael Woodhouse, Associate Minister of Transport

“We need to have the same timeline as Australia for light commercials, so we would like the deadline moved from July to November 2015.” The MIA says its members would also like to be able to run with existing commercial models for another two years while factories gear up to the changes. “Officials may have assumed that if you can’t get a certain model with ESC, you can get another one or consumers will buy another brand that has it,” says Crawford. “That’s unlikely to be the case. It’s more likely consumers will hold onto older vehicles or buy a used import without ESC. “Newer vehicles are safer. An outcome where new light commercials aren’t available and buyers turn to used imports without ESC instead isn’t really in the public’s best interest in terms of safety outcomes. This is what the draft rule is trying to affect.” Woodhouse is urging people to make submissions on the way forward and says he will be “listening closely”. He told Autofile: “I’m open to making changes if feedback tells us we can prevent potential difficulties in the market with minimal impact on safety.” Woodhouse and his officials worked closely with the used vehicle import industry around its roll-out,

The government believes the changes will not significantly affect car availability or cost. The changes will not be retrospective because it says ESC is tailored to vehicles’ characteristics, while some

Light Vehicle Brakes Amendment 2014 will change the law so the requirements can be implemented. Submissions close at 5pm on April 22 and can be made online, by email or post. Visit www.ntza.govt. nz/consultation/ for more details.

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new cars

Open-top supercar launched

he Exige S – described as “the supercar without the super price” – has been joined by an open-top sibling. The new Lotus Exige S Roadster combines compact size, low weight and a big engine. The supercharged 3.5-litre V6 punches out 257.5kW and 400Nm of torque and – with a weight of less than 1,200kg – the car is lighter than some small hatchbacks. The dash to 100kph takes four seconds, 0-160kph comes in at 8.5 seconds, the top speed is 233kph and the price-tag is $131,990, excluding dealer costs and delivery. The Exige S Roadster is 10kg lighter than the hard-top and

boasts modifications to the suspension, including changes to the camber and a slightly thicker rear anti-roll bar. The driver is “two clicks and a roll” away from open-top cruising thanks to the lightweight, factory-fitted soft-top. The steering is light and responsive. The chassis levels out road bumps and maintains maximum tyre footprint contact

to ensure high adhesion levels. This is achieved through mechanical design and electronics that combine to produce ideal chassis responses for changing conditions. Lotus’ dynamic performance management allows the motorist to switch between three driving modes – touring, sport and off. An extra option – race – is

available as a fourth setting, which gives maximum possible traction out of corners. The race pack has launch control and optimised ontrack suspension. AP Racing four-piston calipers clamp onto 350mm ventilated and cross-drilled front disks and 332mm rear disks – all backed by a four-channel ABS anti-lock system. The marque’s range is available from Lotus Auckland, which has a direct link to the UK factory for training, information and range updates.

Setting design standards Gravity sport looks

cLaren has unveiled a supercar to bridge the gap between its 12C and P1 – its 650S comes as a fixed-head coupé or a Spider with a retractable hard-top. The 3.8-litre V8 engine has a 25hp boost over the 12C and an extra 80Nm of torque for a total output of 650PS and 678Nm of torque. The dash to 100kph takes three seconds and 0-200kph comes in at 8.4 seconds. Its top speed is 333kph and its design is inspired by the P1. The front bumper gives the 650S a dramatic appearance and sits below improved

The McLaren 650S coupé

10 | www.autofile.co.nz

headlamps to the 12C, while the integrated front splitter contributes to increased downforce and better handling. The aerodynamic performance is as efficient as the 12C with the same drag co-efficient figure, but air is worked more efficiently as it flows over and through the bodywork. Side intakes behind the dihedral doors efficiently packaged radiators, which help provide the cooling requirements of the mid-mounted engine. The starting price of the 650S coupé is the equivalent of NZ$380,000 and NZ$420,000 for the Spider.

olvo’s latest vision of the future is the new Concept XC Coupé, which is inspired by the “design of sports equipment” and showcases the safety capabilities of the marque’s new “scalable product architecture”. It says the car shows how engineering makes it possible to reinforce world-leading safety without compromising design, size or weight. Thanks to the extensive use of high-strength boron steel and structures with new decoupling, it can make cars more compact and safer. The two-door, four-seater Concept XC Coupé has strong connections with its sibling – the Concept Coupé – but boasts larger 21-inch wheels, accentuated

wheel-arches and a taller roofline. Among the sources of inspiration for its designers was Swedish company POC, which develops high-tech protective gear for gravity sports athletes. The front end is characterised by a new bonnet and floating grille, flanked by headlights featuring T-shaped daytime running light guides. The rear light is also a distinctive element in Volvo’s new direction. The marque paved the way for a new segment with the V70 Cross Country in 1997. The range has been developed and extended since then. It spans the V40 Cross Country, XC60, XC70 and XC90.

The new Concept XC Coupé

news

Kiwis bucking global trends N

ew Zealanders are taking a different road than the rest of the planet when it comes to buying a new car. Comparing this country’s 10 best-selling vehicles in 2013 against the top 10 globally shows how different the local market is. While Toyota’s Corolla topped the charts here and worldwide, it was one of the few instances of Kiwi buying patterns showing any alignment to global trends. Consumers here showed a strong preference for practical, multi-task type vehicles last year, while the rest of the world steered more towards smaller and midsized four-cylinder cars. With Kiwis regularly transporting things such as pets, mountain bikes, firewood and boats, vehicles here are often required to be capable of many

The Corolla was 2013’s top seller – in this county and worldwide

roles, says the Motor Trade Association. “It’s not surprising our buyer preferences vary so much from worldwide trends,” says spokesman Ian Stronach. “Cars tend to be more of a focus in the lives and lifestyles of New Zealanders than in other parts of the world where they are sometimes regarded solely as an urban transportation solution. “Many Kiwis are still strongly inclined towards outside activities

and their choice of vehicles tends to reflect this.” New Zealand’s top 10 featured two SUVs, four utes and four standard passenger vehicles. Worldwide, it was a different picture with eight cars, one SUV and one utility. The Kiwi top sellers, in order, were the Corolla, Toyota Hilux, Ford Ranger, Suzuki Swift, Holden Commodore, Toyota RAV4, Nissan Navara, Holden Colorado, Toyota Yaris and Holden Captiva. The global top 10 was the Corolla, Ford Focus, Ford F Series, Hyundai Elantra, Toyota Camry, Honda CR-V, Chevrolet Cruze, Volkswagen Golf, Ford Fiesta and VW Polo. Several models that have

featured strongly in the New Zealand-new and used import sales charts over the years have had less impact on the world stage. Holden’s Commodore didn’t even make the top 100 models in 2013, while the Suzuki Swift came in at 99th. With the exception of Ford’s F Series range of large pick-ups, all of the models in the world’s best-selling list are available in New Zealand. “Obviously every market will consider itself unique, but in New Zealand’s case there might be a bit more substance to that notion,” says Stronach. “If what we drive says anything, it might be that we place a priority on functionality and flexibility. “We like our vehicles to be capable of more than one task and don’t follow every trend that originates offshore.”

Bikers tackle road safety

hree new members have been elected to the Motorcycle Safety Advisory Council (MSAC), with Janice Millman, Andrew Darrell and David Golightly starting their two-year terms this month. The appointments come as the road toll for bikers is again under the spotlight and when ACC is boosting its injury-prevention efforts across the board. Golightly, of Christchurch, has been involved in bike safety for more than two decades and has strong networks among dealerships, distributors and riding instructors. He manages a motorcycle insurance business and was the first two-wheeler insurer to reduce people’s premiums if they undertook training. Auckland-based Millman has been riding for more than 40 years. She is a member of Women’s International Motorcycle Association and used to be a member of the UK Institute of Advanced Motorists.

Her professional background is in organisational development and change management. Darrell has been interested in twowheeler safety for more than 30 years and has a keen interest in research. He’s a trustee of the Cashmere Club in Christchurch, which runs sports and community activities. This includes governance and financial overview, while his professional background is in developing telecommunications products. “The MSAC plays a significant role in developing initiatives to make motorcycling safer,” says ACC Minister Judith Collins. “These new members will enhance its skillset and expertise, give it wider representation around the country and increase connections with the motorcycling community. As previously reported by Autofile, the council has worked on projects, such as the Southern Coromandel Loop initiative and researching safer bike lighting configurations.

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regional report

Aerial shot of Greymouth Photo: Stewart Nimmo

Coast seeing market recovery A

s New Zealand’s economic recovery pushed forward last year, Greymouth was left behind. More than 500 coal miners were laid off amid Solid Energy’s collapse, which sent ripples through the rest of the economy and affected many of the town’s small businesses. “We’re down to our lowest numbers in the coal industry in history with only 70 workers,” says Tony Kokshoorn, Mayor of Greymouth. He believes the price of coal will rise again in the medium term despite a fresh glut causing

Used car sales for Greymouth Public to Dealer

Public to Dealer to Public Public

its price to hit record lows. “We look forward to the resurgence of the industry,” he says. “China is purchasing as much coal as it ever has. “There’s just been a glut from the US dumped onto the Asian market because the American plants are converting to gas. It’ll come back but in the medium term.” Kokshoorn told Autofile the town of about 14,000 people is pushing out of the slump with service and trade industries leading the pick-up, but many smaller businesses in the CBD are still struggling. “They’re coming to terms

Town’s vehicle sales - Feb 2013 to Feb 2014

- Feb 2013 to Feb 2014 Total

Public to Dealer %

with the internet surge, while our stagnant economy over the past few years hasn’t helped. “It’s up to each individual rural town to ensure they have little points of difference. Ours is mining, so we’ve got to make sure it picks up.” Kokshoorn says further opportunities in mining could boost the town’s population by 1,400 over the next 10 years. “A number of people living here are from dairying and mining. There’s a lot of opportunity for gold and there are investigations at the moment into limonite sands, which you can use to make paint.”

Public to Dealer to Public % Public %

Used cars

New Cars Used Comms New Comms

Feb ‘13

183

285

9.8%

64.2%

26.0%

Jan ‘13

Mar ‘13

212

323

13.3%

65.6%

21.1%

Feb ‘13

Mar ‘13

Apr ‘13

164

282

15.6%

58.2%

26.2%

May ‘13

198

103

358

15.9%

55.3%

28.8%

May ‘13

Jun ‘13

172

307

14.3%

56.0%

29.6%

Jun ‘13

Jul ‘13

214

339

14.2%

63.1%

22.7%

Jul ‘13

Aug ‘13

Sept ‘13

Oct ‘13

19 13

Aug ‘13

216

345

12.2%

62.6%

25.2%

Sept ‘13

212

324

11.7%

65.4%

22.8%

Oct ‘13

187

312

13.1%

59.9%

26.9%

Nov ‘13

23.0%

Dec ‘13

Jan ‘14

309

176

163

NZ sales - past 103,277 12 months

84,114

6524

31,607

Nov ‘13

227

357

13.4%

63.6%

Dec ‘13

198

327

12.5%

60.6%

26.9%

Jan ‘14

184

325

16.0%

56.6%

27.4%

Feb ‘14 Annual total Change on Feb 2013

47 545

198 2382

104 1021

349 3948

13.5% 13.8%

56.7% 60.3%

29.8% 25.9%

National YTD average

67.9%

8.2%

12 | www.autofile.co.nz

40.5%

22.5%

18.8%

56.6%

24.6%

12 month total

% of national sales Change on Jan 2013

0.3%

0.2%

0.4%

0.5%

121.4%

-6.7%

0.0%

9.1%

TOURISM AFFECTED Greymouth was a victim of the February 2011 earthquake in that tourist numbers dropped dramatically as visitors stayed away from Christchurch, which acts as a gateway to the West Coast. For example, the TranzAlpine, which usually has 14 carriages in the summer, went down to about five or six carriages after the quakes. But the signs this year are pointing to a rebound, with the number of guest nights in February up by 18 per cent compared to a year earlier. Kerry Heveldt, who owns NZ Rent A Car’s franchise in Greymouth, has noticed business picking up and is looking forward to a strong end to the tourist season during April and May. Alastair Hamilton, sales manager of Coast Toyota, says the West Coast Wilderness Trail could boost tourism if it’s promoted more. The cycling route passes through native forest, glacial rivers, wetlands and lakes. “A group of Christchurch business people have spent millions of dollars building a world-class restaurant and they have done up the houses to look like the 1860s to go alongside the trail,” he says.

CAR INDUSTRY CHANGE As co-owner of Greymouth Car Centre with his brother since 1981, Kokshoorn has seen the nature of the motor vehicle sector change 

regional report  as the internet opens it up. “The competition is huge now,” he says. “It’s a good thing for the consumer and dealers must have a net presence. “Every month we sell a couple of cars to Auckland or somewhere in the North Island. “If someone said an Aucklander would buy a car from a Greymouth car yard 10 years ago, we would

“Twelve months on and the place is feeling more positive and people have come to terms with the fact we’ve lost big employers in town – it’s the new normal,” he says. “Coal mining may not come back as strong as it was originally three or four years ago, but it will come back. “We’ve also got a new fish processing plant being built down on the wharf that will employ

where we were – if we went much lower, we would have been out,” he says. “We made sure we watched our overheads and went into ‘existing mode’.” Alastair Hamilton, sales manager of Coast Toyota, believes Greymouth’s economy has been heading downward over the past couple of years. “We wouldn’t want it to get

“We have had three very hard years, but the community is very resilient.” – Tony Kokshoorn, Mayor of Greymouth

have laughed. Now it’s a reality.” He says the market is constantly changing and “if you’re not up to it today, you’ll go out of business”.

STACKING UP NUMBERS There were 31 used car sales in Greymouth during February compared to 14 during the same month in 2013. Over the same period, new car registrations decreased by just one unit to 14. Neil Smith, dealer principal of Grey Ford, got through the tough times last year with his workshop taking the biggest hit.

between 40 and 50 staff.” Smith emphasises the coast’s economy hasn’t suffered as much as some towns in the north. “A lot of other small towns of a similar size have struggled especially in the North Island where they have lost the main employer, such as the meatworks,” he says. Kerry Heveldt, owner of Greenfield Motors, says 2013 was his toughest since entering the industry in 1971 – and the only way in the town this year is up. “There was only one way from

worse. What you’ve got to try to do is make money in every department by focusing on good customer service so they come back and buy. Our brand has a bigger car park, which helps.” And despite the Pike River tragedy and mining jobs being cut, many locals have stayed instead of shifting to find work. “They’ve taken a much lower paying job and tightened their belts,” says Hamilton, while Fonterra’s strong pay-out forecast is bolstering the market. “We’re getting a lot of dairy

Neil Smith, dealer Coast Toyota principal of Grey Ford

Greymouth Car Centre

Legacy of Pike River Charges laid by the Ministry for Business, Innovation and Employment against Peter Whittall, chief executive officer of Pike River Coal when the mine exploded claiming 29 lives, were dropped earlier this year. Tony Kokshoorn, Greymouth’s mayor, says he and the victims’ families were hoping for some sort of liability to prevent future disasters. “That ‘she’ll be right’ attitude is not alright,” he told Autofile. “We wanted some accountability but didn’t get it with the charges being dropped. “The key witnesses would not front, so the judge made the call it wasn’t winnable.” In January, a legal letter suggested dropping the charges was part of a deal agreed to by the government in exchange for reparation to the families of those killed in the November 2010 explosion. “The fact that a compensation package was thrown in did muddy the waters,” says Kokshoorn says. “But I take the judge’s word she only put a small amount of emphasis on that.”

farmers and people who rely on the dairy industry for their businesses, such as the shop down the road or the engineering firm that works for it.” Hamilton says commercial vehicles are the top-sellers for Toyota on the West Coast. Between February 2013 and February 2014, there were 163 new and 24 used commercial sales. Looking forward, he believes there are opportunities for manufacturing to grow on the coast. “We need to improve our timber industries and as a nation we need to produce a finished product,” says Hamilton. “I know of a factory having no problems producing top-quality furniture and exporting nationally and worldwide.” Kokshoorn says the indicators are pointing in the right direction. “As a community, we stick together. We’ve had three very hard years, but the community is resilient.” “Dairy farming is starting to roll forward and tourism is picking up. The signs are there and we’re past the bottom certainly.” www.autofile.co.nz | 13

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News in brief eCall rescue system to become compulsory in Europe Devices that automatically inform the rescue services of crashes must be fitted to all new cars and light vans in the EU by October 2015. The eCall system transmits alerts after serious accidents that give locations to help emergency services arrive faster. One device costs the equivalent of about NZ$164 to install. But to meet an industry request for more time to develop the technology, the European Parliament may delay the deadline if the need arises. Visit www.autofile.co.nz for more on this story.

Company buys gas-powered sedans to cut emissions A taxi business is showing it’s committed to sustainability – by the end of last year it had taken the equivalent of 283 cars off the road and will continue this year. Corporate Cabs did this by replacing 26 per cent of its fleet with the liquid petroleum gas (LPG) Holden Caprice and through its sustainability programme, which offsets emissions from its fleet in Auckland, Wellington, Christchurch, Dunedin and Queenstown. The car’s 180kW 3.6-litre vapour-injection LPG V6 engine emits 185g/km of CO2, the lowest of any locally built six-cylinder sedan. It exceeds Euro 6 emission standards.

Prestige marque ponders hybrid before electric

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Mercedes-Benz is planning to build a pure electric vehicle (EV) in the future, but a plug-in hybrid version of the S-Class is likely to arrive first. Project leader Dr Uwe Ernstberger says: “We have to work on the capacities of batteries because you don’t want to lose comfort features. First, we’ll have a hybrid to drive 25-30km on electric power only.” The S-Class is also a candidate for advanced autonomous driving, but the marque is debating how far it can push the technology. Meanwhile, Renault could offer battery-pack upgrades on some European EVs. With range-boosting technology about two years away, it has factored in swapping batteries and upgrading systems on models.

Hatchback sees off stiff competition to take title

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The Peugeot 308 has been crowned 2014 European Car of the Year ahead of the MercedesBenz S-Class and Mazda 3. It also outscored BMW’s i3, which took out the UK title, and the Tesla Model S sedan. The other finalists were the Citroen C4 Picasso and Skoda’s Octavia, which were shortlisted from 32 nominees. The hatchback’s triumph follows two wins for plug-ins in four years. Vauxhall’s Ampera range extender won in 2012 after Nissan’s Leaf took out the 2011 title, while last year’s victor was the Volkswagen Golf.

Suzuki tops two-wheel marques as sales soar ahead Registrations of new motorbikes stayed on-track last month with 679 onroad sales being 30 ahead of February 2013. Year-to-date transactions are beating last year by 208 units. Suzuki led the market with 119 sales, ahead of Honda on 75 and HarleyDavidson on 45. Visit www.autofile.co.nz for more industry statistics.

new cars

Limited edition marks launch

lfa Romeo has celebrated the birth of its new supercar with its 4C Launch Edition before the model arrives in New Zealand later this year. The limited release comes in Alfa red or matt Carrara white and is enhanced by a carbon aerodynamic kit, which includes headlights, spoiler and door-mirror covers. An imprint is found inside, where the sports seats and steering wheel – covered with leather and microfibre and trimmed in white – stand out with a distinctive plate with numbering from 1-500.

The limited edition boasts a rear aluminium extractor with dark finishing, bi-LED headlights, 18-inch front alloys and 19-inch rear alloys with dark treatment. To accentuate the sports look, there are front air intakes, brake calipers in a specific colour, racing exhaust system and suspension kit with specific calibration shock absorbers and rear anti-roll bar. Its on-track 0-100kph speed is 4.5 seconds with a top end of

258kph, and deceleration peaks in the range of 1.2g and lateral acceleration peaks over 1.1g. This is achieved by optimum weight distribution – 40 per cent on the front axle – and to a weight-topower ratio of less than 4kg/hp. The 4C is powered by a 240hp turbo-petrol engine with Alfa’s latest TCT dry twin-clutch gearbox and advanced DNA selector with new race mode. The car’s torque and specific

power set records for its engine size at more than 200Nm/l and 137hp/l, while maximum power of 240hp is reached at 6,000rpm. Torque of 350Nm is maintained constant from 2,100-4,000rpm, while 80 per cent is available at 1,800rpm. Nicola Larini attended the 4C’s launch in Italy, during which he received a trophy for the DTM title he won in 1993 driving an Alfa Romeo 155 V6 Ti. It’s the only “non-German” car to have won the German touring championship.

The 4C Launch Edition in matt Carrara white

Marque extends range

he new 4 Series Gran Coupé is the first fourdoor vehicle of its kind in the premium mid-size class to represent a consistent extension of the model range, BMW says. As the third model to join the series, it has combined fuel consumption of 8.1-4.5l/100km and CO2 emissions of 189-119g/km. Its EfficientDynamics include engines optimised for economy, lightweight build, aerodynamics and other features, such as smooth covered underbodies and air curtains and breathers. Fuel use is limited by brakeenergy regeneration, auto start-stop, the gear-shift indicator and ancillary components being activated on-demand. The automatic Steptronic The BMW 4 Series Gran Coupé Sport Line

transmissions further cut consumption in coasting mode and more savings are possible in ECO-PRO mode. Four and six-cylinder petrol engines – plus two four-cylinder diesel units – are available, while the 428i and 420d can be optionally equipped with intelligent all-wheel-drive. The standard variant is a six-speed manual, but engines can be combined with optional eight-speed Steptronic or sport Steptronic transmissions. The Gran Coupé’s 480-litre boot volume is 35l bigger than the two-door version. Pricing and specification will be released closer to launch here in the second half of 2014.

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from the trade and for the trade

Working for industry on rules W

ith the draft amendment to the light-vehicle brake rule for electronic stability control (ESC) being released, it’s a good time to explain what the IMVIA has done over the years to help solve the challenges of rules and regulations. When Vehicle Standards Regulations – precursors to the Land Transport Rules – took effect in the early 1990s, one requirement was all cars having certified seatbelt anchorages. This was a problem in Japanese used cars. They didn’t have lap or diagonal belts for rear-seat occupants back then and they were being installed retrospectively using different methods. Some were dangerous, including bolting the upper anchorage to the C-pillar’s plastic trim panel. I was a design compliance auditor for the Land Transport Safety Authority (LTSA) before the NZTA existed, and pushed for tests to see if methods being used were acceptable. Dick Reynolds, controller of vehicle standards, agreed so the LTSA embarked on a programme that included using car and van bodies donated by new vehicle distributors with tests by the Department of Scientific and Industrial Research (DSIR). Anchorage installers were invited to fit systems in some vehicles. The worst performers were riv-nuts followed closely by tube-bolts, which didn’t surprise

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Telarc. The testing programme went on for many years costing $2-$3 million. The next big challenge was frontal impact and the IMVDA produced a handbook for dealers at auctions in Japan to ensure they bought compliant stock. Exhaust emissions were next up. The IMVDA commissioned the New Zealand Institute of Economic Research (NZIER) to research the proposed rule’s economic effects. The results of this and research carried out for the Ministry of Transport by COVIC were similar, and showed negative economic benefits to New Zealand and warned of retention of older vehicles. The Clark government ignored both reports and the results were as predicted by NZIER and COVIC – just how many old Hiaces with more than one million kilometres on the clock are now in Kiwi fleet? The next challenge is ESC. The IMVIA worked with officials before the draft rule was published, it is continuing research, will make a submission, and lobby people and organisations. As Japan mandates for it later this year, we’ll be working to identify compliant models to buy when the rule takes effect. The government there has already mandated ESC for new models of light commercials from this month. They have been accorded “grandfather rights” and have until February 2017 to comply.

Specialists in Pre Shipment Inspections

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and Latimer Lodge, me as I had seen Christchurch, where retrofitted tube-bolts Milner, Nicholls ripped out of B-pillars of and I explained cars involved in crashes. the requirements, Most were 1950s-60s testing results and vehicles that had to repercussions for the have lap or diagonal industry. belts retrofitted for the This was reinforced driver and front-seat MALCOLM YORSTON IMVIA membership and by Nicholls, and Milner passengers when the technical services manager called for a $5,000 levy in 1936 Traffic Regulations two equal payments from members were changed in 1966. Cars made to kick-start a testing programme – from 1955 onwards had to have many paid up there and then. front-seat belts. The LMVDIA then engaged Even the 50mm by 40mm plate Transport Specification Ltd (TSL) to recommended in the New Zealand carry out testing. standard for belts was inadequate As the facilities and equipment and, without being reinforced, available didn’t would tear from meet the full the body panel. requirements The results of the UN-ECE reinforced the regulation for NZTA’s thinking anchorages, that anchorages an alternative must meet standard – St standards. 31391 – was At this time, developed by the the Licensed LTSA with TSL to Motor Vehicle carry out the tests. Dealers Importers’ Rod Milner Diagrams and Association specifications had to be drawn up (LMVDIA) had been formed for along with instructions for seatmembers having issues with NZ belt installers and anchorages. Customs over value for duty. These were in certification I spoke to Rod Milner about the procedure reference manuals concerns and suggested a meeting published by the Imported Motor with the NZTA. It was held at the Vehicle Dealers’ Association (IMVDA). DSIR in Parnell where committee Installers also needed a quality members and John Nicholls, the assurance scheme, which was LMVDIA’s executive officer, could developed by Telarc. inspect tested vehicles. It was based on ISO standards, Urgent LMVDIA meetings called Q-Base and audited by followed at Ellerslie racecourse

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f & i stats

Often needed, PROTECTA Nationwide F & I results rarely offered February 2014

Finance

18%

Payment protection

32% 11% 38% New Used

GAP

14% 22%

Insurance

10%

Best result $ 1,125 Worst result $ 3 50

17%

MBI

uaranteed asset the finance company.” protection Another part (GAP) of Mills’ role with financially safeguards Protecta is to assist customers against the motor vehicle traders physical loss of their with maximising vehicles if secured under profit opportunities. credit contracts. She spends a lot Cars usually of time with dealer Erin Mills depreciate faster than principals and business Business development manager, credit balances, which managers analysing Protecta Insurance NZ Ltd will leave buyers far where there’s more worse off than when they made profit to be earned. their purchases. Mills sees GAP as an important If a vehicle is deemed a total part of the dealer’s product loss following an accident or portfolio to build extra profit. theft, GAP pays the financier “One of the great benefits of any shortfall owing up to the selling your client a GAP policy is specified amount after the retention of that customer,” she insurance settlement. explains. This amount depends on the “Usually when a consumer is policy sold, but can be up to as facing a total loss, the first person much as $20,000. he or she calls is the business Erin Mills facilitates finance manager or salesperson. and insurance training for “With GAP policies, you can Protecta Insurance. guide customers through the She says: “This product is insurance process, get them back excellent for low or no-deposit to the dealership to pick another purchasers because if they haven’t car and refinance that vehicle. bought a GAP policy and have a “This type of great customer contract balance owing, the finance service will no doubt spread by company will request the balance is word of mouth and may create settled due to the fact it no longer new sales.” has the vehicle as security. Mills finds the secret to selling “In many cases, the lender GAP is actually in the extra will not finance another benefits the product has. purchase because it doesn’t Protecta’s GAP policy will pay want two vehicle loans for extra benefits, whether there’s a one customer, or it deems the finance shortfall or not. customer cannot afford to It will cover the insurance commit to an extra loan. excess on the existing policy, “This causes a lot of stress for comprehensive insurance for the the buyer because essentially he new car, on-road and registration or she doesn’t own a vehicle, but costs for the new vehicle and still has the loan and can’t afford a rental to keep the customer another commitment. mobile until the new car has “Over the years, I’ve seen many been organised. instances when customers come If you would like to increase in and ask if we can finance the your knowledge or learn about outstanding balance of their enhanced customer satisfaction vehicle loan. and retention – and unlock the “But this is very difficult profit potential of selling GAP – unless the client has a solid email erin.mills@protecta.co.nz profile and payment history with or phone 021-807-148.

49% 0%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

We’re raising the bar... Specialist training is helping our motor dealers to achieve longer term sales targets. Find out more today. contact: erin Mills from Protecta insurance Phone: 021 807 148 email: erin.mills@protecta.co.nz

www.autofile.co.nz | 17

disputes

Buyer failed to require dealer to fix faults but gave notice for others Background Marius Ansorge bought a 2004 Audi Allroad 4.2 Quattro from AR Ltd, trading as JB Wholesale, on August 9, 2013. He applied to recover $2,501 for post-purchase faults. The trader said he wasn’t entitled to recover $786 spent on repairing leaks because he had them repaired. It added Ansorge shouldn’t get $500 for fixing the hood lining because he agreed to buy the car with it damaged. The dealer also said the buyer hadn’t incurred the cost of two $450 excess payments to repair a gearbox multi-function switch and the air-pump motor.

The case Qualitat European Motors Ltd carried out a pre-purchase inspection on August 1 before Ansorge bought the Audi Allroad for $21,990 It reported a seat rest not locking into place, the rear roof lining starting to drop, the tail shaft seal weeping, a cracked tyre and leaking rocker-cover gasket. Ansorge provided a copy of the report to the trader and agreed to buy the vehicle if it fixed the faults. The dealer repaired the seal and gasket, and had an invoice for replacing a transfer case seal and cleaning and checking the oil leak. Ansorge was prepared to accept the dropping roof lining but didn’t see if the tyre had been replaced or was safe before accepting the car, which had 54,000km on its odometer when sold. The dealer provided him with a 12-month mechanical breakdown policy with a $450 excess, with the cost included in the purchase price, but failed to supply a warrant of

fitness (WOF) issued within one month of the sale. On September 13, Ansorge went to Farmer Autovillage, an Audi dealer in Tauranga, after finding water entering the car. It fixed a leak at the right-handrear drain tube and the hood had to be lowered for repair. He was charged $384. It also checked for rear ingress from the tailgate hinge-bolt holes, removed the bolts, applied sealant and refitted them. Another leak was discovered through an insecure high-stop lamp that, when removed, the fixing point was found to be broken allowing water in. A new lamp was required for $315 including GST. Ansorge paid $300 for that repair – a total of $684 to fix the repairs and diagnose the faulty lamp – but admitted he didn’t require the seller to remedy the leaks before the work was done. He emailed the trader on September 19 to inform it of the leaks and lamp, which the dealer agreed to replace. The seller also offered to repair the lining, which it claimed could be done for $450, but he would have to return the car. Ansorge had trouble starting the vehicle in October and it went into limp-home mode. Farmer Autovillage diagnosed a faulty gearbox multi-function switch. Another warning light appeared on the instrument panel, which was diagnosed as caused by a faulty air-pump motor and relay. Autosure approved both claims being paid under its breakdown policy, but there was a $450 excess for each claim that

Ansorge wanted the trader to pay. The buyer believed a vehicle of this age, mileage and price shouldn’t have had those faults after two months’ use. He produced a quote of $500 including GST from Regal Auto Trim to remove, strip, recover and refit the hood lining. The trader, represented by its manager Mr R Tuck, said it wasn’t given the chance to repair the leaks before they were fixed so it shouldn’t have to pay. The dealer said when Ansorge bought the car, he accepted the hood lining was damaged, so it shouldn’t have to pay $500 to replace it. With regard to the $450 excesses to repair the gearbox switch and air-pump motor, the trader said this work hadn’t been done so it shouldn’t be expected to pay them.

The ruling The tribunal accepted the car had leaks that appeared soon after it was supplied and thought they were probably present at the time of sale. Its rear-hood lining was starting to drop and that fault wasn’t repaired by the trader when it supplied the vehicle. After two months and 4,000km, it developed problems with the gearbox switch, air-pump motor and relay, which needed to be replaced. Ansorge produced invoices for work done to prove those faults existed. The tribunal ruled the vehicle was neither free of minor faults nor as durable as a reasonable purchaser paying $21,990 would regard as acceptable for a 2004 Audi

buyer wanted The case: The for repairs after

to be refunded his car was supplied. The trader claimed he wasn’t entitled to the money spent on some leaks because he fixed them and the buyer hadn’t incurred insurance excess payments for other faults because he hadn’t authorised those repairs.

n: The tribunal The decisio haser failed to

ruled the purc require the trader to repair some faults, but had done so for others. r Vehicle Disputes At: The Motoland . Tribunal, Auck

with 54,000km on its odometer. The trader claimed Ansorge accepted the car with the lining starting to drop. But the dealer didn’t comply with section 7(3) of the Consumer Guarantees Act (CGA) by disclosing this on a notice displayed with the vehicle. The car didn’t comply with the guarantee of acceptable quality when sold because it had minor defects and wasn’t as durable as a reasonable buyer would consider acceptable. Ansorge admitted he hadn’t required the trader to repair the leaks before having them repaired, so he didn’t comply with section 18(2)(a) of the act and wasn’t entitled to recover $684 spent on those repairs. But the buyer did give the dealer reasonable time to repair the other faults. The tribunal ruled Ansorge was entitled to recover reasonable costs to replace certain parts and excess costs incurred in doing so.

Order The trader had to reimburse the buyer with up to $1,805 after producing of copies of invoices to replace the high-stop lamp, hood lining, and excess payments for replacing the gearbox switch, airpump motor and relay.

CONNECT & ENGAGE 18 | www.autofile.co.nz

disputes

Tribunal rules purchaser failed to prove his claim to civil law standards Background Donald McRae bought a 2004 Mitsubishi Colt from Just Right Marketing Ltd, trading as Just Right Cars. He wanted to recover $721 for replacing a shock absorber and servicing the vehicle after it had been supplied. The trader said it had passed a WOF before it was sold and no fault had been found with the shock absorber. Its staff serviced the Colt and changed its engine oil before it was supplied, so the dealer claimed there were no faults with it and an oil change wasn’t needed.

The case McRae bought the Japanese import for $8,990 on January 30, 2013, when its odometer was on 30,947km, although that appeared to have been understated by about 200km. The buyer, who lives in Christchurch, asked the trader to deliver it to Andrew Simms Mitsubishi (ASM) in Newmarket for a check-over. Before the car was delivered, McRae emailed the dealer on February 7 and asked it to “clarify the degree of service carried out”. He queried if it included an oil change and cleaning filters, while he took on-board a suggestion to flush the transmission, but the dealer failed to reply. McRae emailed Craig Moffat, service adviser at ASM, the same day and said: “You were to book in next week a full service and check as the car has been newly purchased for my daughter, who’s living in Auckland. “Just Right Cars advised that

as it’s a newly registered import, it serviced the car. The best it could tell me was that included an oil change, and replacement of the oil and air filters. “Is there any way your checks can determine such servicing when you inspect the car? It had done 30,000km.” The vehicle was delivered to ASM on February 8, which completed a service six days later that involved renewing the engine oil and filter. A leaking shock absorber was replaced. The work cost $721. McRae said the oil and filter were replaced because they were dirty. He phoned Glen Skewes, of the trader, on February 14 after he was informed of the work and told of the estimated cost. Skewes told McRae the vehicle had a full service, a new WOF and nothing wrong was with it. McRae authorised the work to be done but he didn’t ask for the old shock absorber to be kept. On February 26, McRae said he called Mr S L’Amie, the trader’s director, and emailed him about the oil and shock absorber. He submitted the invoice and asked the dealer to “review costs incurred with consideration to reimbursing” him. McRae received no response and didn’t pursue the matter for eight months. He said this was because he didn’t know about the Motor Vehicle Disputes Tribunal or that he might have had a claim under the CGA. On October 30, McRae sent the trader a copy of his email of February 26 and asked it to settle but it refused.

The trader emailed the buyer on October 31 to say it had done a lube and oil change, and a lube sticker on the car had been ignored. The dealer said the oil was in good condition and if McRae “had any concerns he should have brought them up before the job was done twice”. It claimed he was misled about the need for a service, and the brakes and shocks were checked by VTNZ prior to sale. McRae produced a letter dated December 9 in which ASM’s service manager, Mr Keatley, verified the car had a B-category service in February, his company had been told of the pre-purchase service, the shock absorber was leaking and the oil was discoloured. The letter stated both items were referred to McRae with cost estimates before repairs were done.

The ruling The tribunal, in deciding if the car was of acceptable quality, had regard to the following facts. It was a nine-year-old imported Mitsubishi Colt that passed VTNZ’s compliance inspection on February 28, 2012, when its odometer was on 30,957km. The car stayed in the trader’s stock until it was sold to McRae 11 months later having been regularly started and driven over short distances. Its odometer was on 31,189km on February 14, 2013, so it had only been driven 232km from compliance to delivery to ASM. The vehicle was sold for $8,900 and supplied with a new WOF. L’Amie was adamant the trader

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r applied to The case: Theeybuye spent replacing

recover the mon a shock absorber and servicing his car post-purchase. But the trader said it had passed a warrant of fitness (WOF) before being sold and no fault had been found with the shock absorber.

n: The onus of The decisio with the consumer, but proof rested his claim was dismissed because he failed to substantiate the Consumer Guarantees Act (CGA) was breached.

r Vehicles Disputes At: The Motoland . Tribunal, Auck

serviced the car. This included replacing the oil and filter, but he had no proof because it was done by his staff and there was no record of the work being completed. The dealer was, however, able to prove the vehicle passed a WOF on January 27 at Albany Village Automotive. Apart from ASM’s invoice and its service manager’s letter written 10 months after the event, McRae produced no evidence to prove the oil or filter were so dirty they had to be replaced or a shock absorber was leaking. In the absence of the faulty shock absorber, the tribunal was unwilling to conclude it required replacing – particularly because the car had undergone two safety inspections within 232km before being seen by ASM. The onus of proving his grievance rested with McRae. He had to prove his claim to the civil standard – on a balance of probabilities – but the tribunal wasn’t convinced he had done so.

Order The buyer’s application was dismissed because he didn’t prove the car failed to comply with the guarantee of acceptable quality in section six of the CGA.

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Biggest Increases/Decreases by town year-on-year

(February 2014 vs February 2013)

try

Aroun

Whangarei tAuckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargil l Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandF Hamilton Thames Tauranga Rotorua

ebru

Biggest Increases

New Used Invercargill  113.9% Westport  160.0% Westport  100.0% Greymouth  121.4% Oamaru  88.9% Gisborne  91.7%

New Used Wanganui  28.2% Oamaru  15.8% Timaru  6.7% Greymouth  6.7%

a r y 2 0 14

Biggest Decreases

Passenger Vehicle Registrations

Used Vehicle Registrations

New versus Used

North Island versus South Island 7162

7000

10000 Used 9155

6000

New

5000

9000 8000

6572

North Island

4000

7000

3000

6000

South Island

2000

5000

1993

Feb ‘14

JAN ‘14

DEC ‘13

Nov ‘13

Oct ‘13

Sep ‘13

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

Mar ‘13

Feb ‘14

JAN ‘14

DEC ‘13

Nov ‘13

Oct ‘13

Sep ‘13

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

APr ‘13

Mar ‘13

APr ‘13

1000

4000

Used Import Passenger Vehicle Registrations by City

Auckland, Wellington, Christchurch

Hamilton, Tauranga, Dunedin, Palmerston North

4500

4445

4000

3000

2000 Christchurch

1324

1000

716

274 238

200 Palmerston North

100

Feb ‘14

JAN ‘14

DEC ‘13

Nov ‘13

Oct ‘13

Sep ‘13

AUG ‘13

JUL ‘13

Jun ‘13

May ‘13

JAN ‘14

DEC ‘13

Nov ‘13

0 Oct ‘13

Sep ‘13

AUG ‘13

Jun ‘13

May ‘13

APr ‘13

Mar ‘13

JUL ‘13

Wellington

335

Dunedin

APr ‘13

500

Tauranga 300

Mar ‘13

1500

Vehicles sold

400

2500

Feb ‘14

Vehicles sold

Hamilton

500

Auckland

3500

584

600

UK, Japanese and local vehicles. Finance available.

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Good start to the year continues

he number of used imported cars crossing the border in February topped January’s total of 8,809 units by 291. There were 9,100 units imported into New Zealand last month compared to 8,268 in February 2013 and of those 8,597 were from Japan. Australia beat the UK into second place on 266 units compared to 138. The total from across the ditch was up on January’s total of 208, while there were 209 used imported cars from the UK in the first month of this year, although the number of units from there is expected to pick up from this month onwards. The 60 used passenger vehicles that arrived from the US in February was down by 22 on the January’s total and amounted to

about half the number crossing our border before Christmas. Craig McLeod, of Craig McLeods Wholesale Car Company in Hamilton, which has been importing from Japan since 1996, says: “The buying there is pretty good at the moment but you have to be selective. “That said, if you put in the hard yards it’s still economical – especially with the exchange rate as it is. This makes it easier but car prices do adjust.” McLeod told Autofile later model stock, such as vehicles sporting the Suzuki and Mazda badges, are available. While overall numbers may be down on previous years, he feels there aren’t too many issues affecting the availability of used cars in Japan. Arthur Murray, of Hatchback

Autos Ltd in Kelston, West Auckland, confirms there is plenty of stock available in Japan at the moment. But he feels it’s currently expensive over there, while the market in New Zealand is very competitive. He says Japanese companies appear to be adhering to a business model from about five years ago with low domestic margins at its centre – and they are now used to operating in that way. “It’s like that with high-volume markets and it’s the same in the US, I believe.” Murray adds that the reason for stock becoming more costly in Japan is “partly due to the sales tax increase coming in soon and prices over there are generally pretty firm at the moment”. As for overall trading conditions,

last year came in about the same as 2012, but nowadays it’s nothing like when they started up and Murray says he was in used imports “from the beginning”. In the past two months, 17,909 used passenger cars have been imported from Japan. In addition to those, 324 used commercial vehicles crossed the border last month and there were 316 in January. Early estimates from Ports of Auckland, based on information supplied by the shipping lines, indicate that it’s full steam ahead for the next two months as far as used imported passenger vehicles are concerned. It reports 13 roll-on, roll-off vessels are due to dock this month and 14 are expected to berth in April.

Used import passenger vehicle arrivals 11000 10000 9000 8000

2014

7000 6000 5000 4000 3000

2010 2013 2011 2012

2000

JAN

FEB

MAR

APR

MAY

JUN

JUL

Aug

Sept

Oct

Nov

Dec

Used Import Passenger Vehicles By Country Of Export Country of Export

Australia Great Britain

2014

2013

2012

JAN ’14

Feb ’14

2014 TOTAL

Market Share %

2013 TOTAL

MRkt Share

2012 total

% Total

208

266

474

2.9%

385

464

503

638

1990

1.9%

1199

1.6%

209

138

347

1.5%

664

716

737

791

2908

2.7%

2730

3.7%

8268

8597

16865

94.5%

20148

27869

23072

29695

100784

93.9%

67442

92.6%

Singapore

0.2%

146

0.1%

154

0.2%

Usa

142

0.7%

266

248

307

384

1205

1.1%

976

1.3%

Japan

Other countries Total

0.2%

251

0.2%

336

0.5%

8809

9100

17909

100.0%

21559

29387

24723

31615

107284

100.0%

72837

100.0%

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Healthy jump in trader sales T

he number of dealerto-public and private transactions across the country posted increases last month compared to the same period in 2013, while trade-ins dropped back slightly. There were 15,846 trader-topublic sales in February compared to 15,247 in the corresponding month of last year, which was an increase of 3.9 per cent. Public-to-trader registrations decreased, however, from 12,100 to 11,875. That was a difference of 1.9 per cent. Sales between members of the public rose by 2.3 per cent from 36,710 to 37,557. Hamish Pike, of Allan Pike Cars in Napier, says: “Trade has been pretty strong so far this year. We have had our up and down

months, and there’s not really much consistency. “It’s either a feast or famine sort of month, but overall our figures last year were good.” Napier recorded a 5.8 per cent jump in dealer sales last month – from 535 to 566 units. There was a 0.5 per cent increase in trade-ins from 424 to 426, while private registrations rose by six per cent from 1,262 to 1,338. Pike says stand-outs for the dealership, which has between 30 and 35 vehicles in stock, are Mazda hatchbacks and utility vehicles. “Whenever I have Mazda 3s or 6s in particular on the yard, they sell as quickly as I can get hold of them,” he enthuses. “There are still people looking for fuel efficiency but they are basing it on size, there’s not one

type of car that’s dominating. “All of the other yards of comparable size are full of the same stock, such as three silver Primeras and a couple of Atenzas. “We try to make sure we have a wide range of stock with the majority of it being New Zealandnew sourced from other dealers, wholesale auctions and trade-ins.” Pike believes people are feeling good about the region and there’s a lot of commercial property development going on. Craig McLeod, of Craig McLeods Wholesale Car Company in Hamilton, reports trade as being good and up on 2013 so far this year. Last month, the city reported a 1.1 per cent increase in trade-ins, dealer-to-public sales rose by 6.1 per cent and private transactions

returned an increase of 3.4 per cent. McLeod says stock across the board is proving to be popular, including people movers and station wagons. His business tends to deal in stock up to $20,000, while demand for cheap trade-ins priced from $5,000 to $6,000 is always busy. “We do have to be fussy in what we sell because we need to stand behind our vehicles, but there’s always demand in the lower price bracket,” he says. “We keep hearing about new car sales tracking up, but our level of inquiry is up on the past few years so I’m optimistic about the future.” The largest proportional increase on dealer-to-public sales last month was recorded in Greymouth. It’s 40.5 per cent jump saw registrations rise from 74 to 104.

Secondhand car sales - February 2014 Feb '14

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

MARKET SHARE

Feb '14

Public-To-Public Feb '13

+/- %

Feb '14

Public-To-Dealer Feb '13

+/- %

Whangarei

445

452

-1.5

2.81

1554

1532

1.4

225

222

1.4

Auckland

5053

5009

0.9

31.89

12780

12737

0.3

4049

4111

-1.5

Hamilton

1340

1263

6.1

8.46

3034

2934

3.4

1089

1077

1.1

Thames

175

191

-8.4

1.10

490

448

9.4

27.8

Tauranga

816

774

5.4

5.15

1800

1734

3.8

556

602

-7.6

Rotorua

250

235

6.4

1.58

726

644

12.7

130

147

-11.6 -12.2

Gisborne

193

149

29.5

1.22

338

363

-6.9

Napier

566

535

5.8

3.57

1338

1262

6.0

426

424

0.5

New Plymouth

447

400

11.8

2.82

981

925

6.1

253

260

-2.7

Wanganui

197

156

26.3

1.24

376

394

-4.6

131

120

9.2

Palmerston North

747

719

3.9

4.71

1483

1560

-4.9

652

728

-10.4

Masterton

151

135

11.9

0.95

333

350

-4.9

7.5

Wellington

1346

1386

-2.9

8.49

2749

2721

1.0

1082

1149

-5.8 -22.0

Nelson

266

312

-14.7

1.68

877

801

9.5

209

268

Blenheim

182

146

24.7

1.15

340

339

0.3

115

119

-3.4

Greymouth

104

40.5

0.66

198

183

8.2

67.9

Westport

-24.2

0.16

14.7

2156

1986

8.6

13.61

4877

4628

5.4

1727

1640

5.3

Timaru

227

242

-6.2

1.43

503

481

4.6

145

168

-13.7

Oamaru

22.8

0.44

171

152

12.5

-25.0

Christchurch

Dunedin

664

606

9.6

4.19

1604

1560

2.8

444

433

2.5

Invercargill

426

387

10.1

2.69

919

887

3.6

313

327

-4.3

15846

15247

3.9

100.00

37557

36710

2.3

11875

12100

-1.9

NZ total

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

Private

% Private

15.8

Alfa Romeo Aston Martin Audi

Business % Business

84.2

Total

33.3

66.7

44.9

55.1

178

Bentley

100.0

0.0

BMW

33.9

115

66.1

174

Chery

83.3

16.7

Chrysler

66.7

33.3

Citroen

50.0

40.0

60.0

Daihatsu Dodge

45.2

54.8

Ferrari

100.0

0.0

Fiat

39.1

60.9

Ford

111

21.3

409

78.7

520

69.2

30.8

Great Wall Holden

219

28.0

563

72.0

782

Honda

165

71.7

28.3

230

Hyundai

188

30.5

428

69.5

616

28.6

71.4

Jeep

35.7

64.3

Kia

33.1

172

66.9

257

Lamborghini

100.0

0.0

Land Rover

55.1

44.9

Lexus

42.0

58.0

Lotus

100.0

0.0

Maserati

0.0

100.0

216

40.6

316

59.4

532

38.0

62.0

108

Jaguar

Mazda Mercedes-Benz Mini

34.8

65.2

Mitsubishi

241

59.7

163

40.3

404

Nissan

248

63.9

140

36.1

388

Peugeot

42.5

57.5

Porsche

46.2

53.8

Renault

0.0

100.0

Skoda

27.8

72.2

SsangYong

27.8

72.2

Subaru

36.1

63.9

144

Suzuki

243

57.2

182

42.8

425

Toyota

268

35.2

494

64.8

762

Volkswagen

164

53.4

143

46.6

307

32.4

67.6

Other

20.0

80.0

Total

2666

40.8

3876

59.2

6542

Volvo

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

Private car sales tracking upwards T

he top of the ladder for marques changed last month when it came to sales of new passenger cars and SUVs. Holden pushed Toyota into second place with 782 registrations, 20 more than its rival. The lion and stone made 563 business sales, which was 72 per cent of the marque’s total, down by 1.5 per cent in January. Toyota also saw its business proportion drop. Last month, 494 of its 762 registrations – or 64.8 per cent – fell into this category, which includes company, rental and government sales. This was down from 84.9 per cent in January. Third-placed Hyundai sold 616 units in February and 428, or 69.5 per cent, were business transactions. Mazda had the second highest proportion of private sales among the top five manufacturers after Suzuki. It sold 532 units and 216 – or 40.6 per cent – were private registrations. This compared to 521 sales in January, of which 34.9 per cent – or 182 units – were to the public. Andrew Clearwater, managing director of Mazda New Zealand, is delighted the overall new vehicle sector performed very strongly last year with about 113,000 sales. “The industry was up by 12.4 per cent and a lot of our growth came from the passenger side,” he told Autofile. “In fact, last year was our best on record for sales in terms of the absolute number.” While the overall commercial vehicle market across the country was very strong, Mazda was “slightly off the pace in that

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segment, but we made up for it in our passenger segment where a lot of our growth came from”. The marque’s top-selling vehicle is the CX-5, which reflects the growth in the sports utility vehicle market, while the mediumsized SUV segment is a “strong performer” for the brand. But the Mazda 3, which represents about 25 per cent of its new passenger vehicle sales, is a “critically important car for us and we’re in the last year of our current model”. Clearwater says: “We’re just in the phase of launching a new-generation Mazda 3. We are traditionally number two in that segment behind the Corolla, which is strongly supported by rental buyers. “We’re quite happy doing fleet business, but our main focus is really on private.” He adds the sponsorship of TV3’s Campbell Live programme ensures the marque has a prime-time advertising spot five nights a week. “Our main emphasis in the early part of the year is the new Mazda 3 because we feel we can improve our share of segment significantly with that,” says Clearwater. “I’m not going to disclose what our forward plan is, but there are a couple of vehicles in the product line. They are entering the right segments of the market where there’s some growth.” Ford was fourth on February’s ladder with 520 units, of which for 78.7 per cent went to businesses. The top five was rounded off by Suzuki – 57.2 per cent of its 425 sales were private.

SUVs dominating the market S

ports utility vehicles are continuing to command the highest market share of sales in New Zealand by accounting for 31 per cent of last month’s total. There were 2,783 new SUVs sold in February compared to 2,022 in the same month of 2013, which was an increase of 37.6 per cent. The year-to-date total is 5,667, up by one-quarter on 4,535 registrations over the same period last year. SUVs were followed by small passenger cars, and pick-ups and chassis cabs – with registrations in each segment amounting to 19 per cent of the market – while overall sales ensured it was the industry’s best February since 2006. There were 9,139 new vehicles sold last month, which was up

by 15.2 per cent compared to February 2013’s total of 7,934. New car sales were up by 13 per cent, while commercials jumped by 20 per cent. All of this brought the yearto-date total to 19,661 units compared to 17,222 last year – a difference of 14.2 per cent. “We are a small town but punch well-above our weight and there are lots of top-end people here,” says Duncan Wright, dealer principal of Queenstown Motor Group. “Everyone thinks everything here is seasonal with busy summers and winters, but we don’t subscribe to that theory and looking at our statistics there’s no clear, quiet time.” The dealership is almost two

Feb '14

Feb '13

Mth %

2014 YTD

2013 YTD

% YTD

Passenger

3,759

3,745

0.4

9,140

8,579

6.5

Private

1,613

1,548

4.2

3,513

3,148

11.6

Business

1,963

1,968

-0.3

4,107

3,750

157

178

-11.8

349

355

Rental SUV

Feb '14

2014 YTD

2013 YTD % YTD

3,759

3,745

0.4

9,140

8,579

6.5

SUV

2,783

2,022

37.6

5,667

4,535

25.0

9.5

Light Commercial

2,260

1,918

17.8

4,180

3,581

16.7

-1.7

Heavy Commercial

297

217

36.9

599

442

35.5

25.0

-11.8

9,139

7,934

15.2

19,661

17,222

14.2

Light

993

1,223

-18.8

2,341

2,525

-7.3

Small

1,760

1,537

14.5

4,446

3,598

23.6

Medium

480

534

-10.1

1,122

1,229

-8.7

Large

334

260

28.5

753

790

-4.7

128.6

-49.0

1,171

1,326

-11.7

2,783

2,022

37.6

5,667

4,535

25.0

Private

1,053

798

32.0

2,220

1,712

29.7

1,612

1,160

39.0

3,044

2,513

21.1

Other Total market

Gov’t

26.4

104

10.6

Rental

363.6

299

216

38.4

2,260

1,918

17.8

4,180

3,581

16.7

Upper Large

Private

Feb '13 Mth% diff

Passenger

Business

Light Commercial

and New Zealand-new stock. Director Nigel Broadhurst says finance levels have pushed up, although most of his customers are cash buyers. “With the sort of vehicles we sell here, most of the people seem to have the funds readily available,” he says. In terms of car models, the Corolla led the way with 311 sales. Holden’s Captiva came in second on 279 followed by the Swift with 233. Toyota’s Hilux reclaimed top spot when it came to commercials with 390 sales to head off Ford’s Ranger on 311. Year to date, the Ranger has 13 per cent market share with 625 registrations, but the Hilux is only four behind.

NEW VEHICLE MARKET SEGMENTATION - February 2014

NEW VEHICLE SALES BY BUYER TYPE - February 2014

Gov’t

years old and Wright, who has been in the industry since 1989, says it has been performing “really well” this year with its Volkswagen, Audi and Subaru franchises. He says all of the brands are suitable for the local market, with four-wheel-drive Subarus, Audi, with its Quattro system, and the VW Golf, which “has just about won every award in the world, so we’re right across the range”. Wright told Autofile: “January was one of our biggest months to date across new and used.” Taupo Motor Co holds the local franchise for Suzuki, and reports inquiry has been lifting for the new X-Cross and Swift, while the dealership also specialises in commercial vehicles

43 109.3

526

372

41.4

984

733

34.2

People Movers

10.1

154

146

5.5

1,621

1,331

21.8

3,012

2,525

19.3

Sports

108

-22.2

234

248

-5.6

Gov’t

115

-27.8

139

200

-30.5

SUV Small

706

483

46.2

1,453

997

45.7

Rental

100

-70.0

123

-63.4

SUV Medium

951

704

35.1

1,989

1,662

19.7

8,802

7,685

14.5

18,987

16,695

13.7

SUV Large

1,081

806

34.1

2,129

1,804

18.0

Private

3,192

2,718

17.4

6,717

5,593

20.1

SUV Upper Large

55.2

33.3

Business

5,196

4,459

16.5

10,163

8,788

15.6

Light Buses

37.0

3.4

Gov’t

307

346

-11.3

592

649

-8.8

Vans

498

457

9.0

874

803

8.8

Rental

107

162

-34.0

1,515

1,665

-9.0

Pick Up/Chassis Cab 4x2

722

570

26.7

1,306

1,007

29.7

Pick Up/Chassis Cab 4x4

1,003

864

16.1

1,939

1,712

13.3

297

217

36.9

599

442

35.5

25.0

-11.8

9,139

7,934

15.2

19,661

17,222

14.2

Business

Sub Total

Heavy Commercial

297

217

36.9

599

442

35.5

Other

25.0

-11.8

Total

9,139

7,934

15.2

19,661

17,222

14.2

Heavy Commercial Other Total market

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www.autofile.co.nz | 25

new car stock

Supply constraints on stock 573 Rangers and 458 Hiluxes sold. Factors for January’s results included Nissan’s specials and the Hilux having strong sales in the final two months of 2013. Crawford says this meant the Toyota was a bit stock-constrained in the first month of 2014. All of this goes to show how stock levels can vary – after two good sales months, month three may dip. Alistair Davis, chief executive and managing director of Toyota NZ, covered the issue of stock supply at the new Highlander’s launch. The country’s market leader is predicting this year’s new car market will top last year’s record count, but Toyota may experience supply constraints on some models. Davis believes annual sales across the industry here may top 120,000, up by 7,000 on 2013’s total. Toyota NZ

is aiming to sell 24,500 units this year, up by 1,000 over last year. This, however, may mean a backwards step in its share because the entire market will have expanded further. Toyota NZ’s record share of 23.7 per cent last year – when three of its models were in the top seven passenger cars and two made the top five of its light commercials – may slide back to 21 per cent as the overall market drives forward. That wouldn’t topple it from its number-one spot here, but Toyota Japan acknowledges global production is being tested. Joining plants in England, Australia, Thailand and Japan is its first American factory – in Indiana, it’s the sole source for the thirdgeneration Highlander. The marque is looking to increase its SUV sales from 1,217 units last year to 1,800, but it may be one of few models to gain such traction. Some high-end Corolla variants have had three-month waits, although that has improved with the sedan equivalent of the hatchback arriving on these shores. More than 7,500 hatchbacks

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

26,867 238

104

26,065

223

117

Mar ‘13

6,329

6,800

(471)

25,594

222

115

Apr ‘13

7,342

5,907

1,435

27,029

216

125

May ‘13

7,400

6,347

1,053

28,082

213

132

Jun ‘13

8,051

7,541

510

28,592

220

130

Jul ‘13

8,423

6,768

1,655

30,247

220

138

Aug ‘13

11,065

6,828

4,237

34,484

220

157

Sep ‘13

6,996

7,272

(276)

34,208

222

154

Oct ‘13

9,362

7,962

1,400

35,608

226

158

Nov ‘13

9,591

7,453

2,138

37,746

228

166

Dec ‘13

8,826

6,371

2,455

40,201

226

178

95,767

82,433

13,334

10000 9500

wanganui gisborne timaru

c t o b e r 2 0 13

729 6,499 52.0% 855 5,430

Jul ‘12  27.7%

westport 8,589 Masterton 6,828 timaru

Aug ‘12  26.8% Sep ‘12  23.7%

242

12,246

223

12,975

218

13,830

209

5,942

1,800

15,630

7,142

1,728

17,358

211

1,686

19,044

209

8,155

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

8,953

6,484

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

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

New Passenger Vehicle Sales

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

105

209

105

211

107

25,153

212

119

26,867

211

128

by Make -

157

222

35,693

226

158

Dec ‘13

ytd total

77,438

68,612

82,380

600

172

Wellington 20 Subaru

0 Audi Lyttelton

165

163

-0.6

4.2%

10.3

3.9%

7 Nov 240 178

-3.4

2.3%

153

7.8

2.2%

13 Nov

16 Nov 150

8.7

Mercedes-Benz

128

56.1

108

80.0

2.2%

1.7% 1.4%

65 41.5 1.2% DOOR SERVICE 86 49 75.5

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

1.2%

39.1

0.9%

Oct 3661 100

299480 1 Nov

2.7% 17

-15.8

Peugeot

Ssangyong

4.7%31

29.0

312

261

22 Oct

Jeep NG SPACE 92 TARGETED ADVERTISI PORT TO

hamIltoN, tauraNga, duNedIN, PalmerstoN North

4320

8,826

BMw

may

apr

9,362

Nov ‘13

1805

310

288

2012

202

Feb

Oct ‘13

7,962

Honda

mar

FEb ‘13

Nov ‘12

Used imPORt PassengeR Vehicle RegistRatiOns by city

34,293

7,272

2013 predicted sales

aucklaNd, wellINgtoN, chrIstchurch

(266)

1,400

7,006

100

Yokohama Volkswagen 80

60 Kia Auckland

154

352760

Nov 256340

1861 23 Nov

1645

29 Nov

4.8%

3.4%

2.4%

2.2%

1748

2.3%

1398

1.8%

1001

1.3%

16 Nov

Hyundai

3.9%

Jan ‘12 Feb ‘12

Toyota

Holden

2013

171

52.0

267

-15.0

Mar ‘13

May ‘13

98 ‘1387.8 30 Nov Jun

5,395

4,920

6,000

(1,080)

4,315

6,504

6,429

4,390

6,613

5,877

736

5,126

7,693

6,793

900

6,026

6,947

6,184

763

6,789

5,335

6,641

(1,306)

5,483

5,540

6,621

(1,081)

4,402

6,867

5,688

Nov8,486 Mkt Share

(716)

3,68

(1,179)

2,50

3,81

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

6,414

5283

3.9%

3,10

(5,474)

78,311

72,837 8.4%

6.9%

ImportS VArIANCe USed 2521 3.3% SoLd

Imported

StoCk

135

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

2.9%

10,967

2750

2.5% 8,089 1201 8,623

81Jul ‘13 107.4

2.3% 8,635 1338

‘13 Sep 100.0

2.3%7,501 894

Aug ‘13 1 Dec 84

Nov ‘13

319

‘13 Dec-57.7

26 Decytd total

10,374

2.3% 1.8%

-1270 -

3,121

7,418

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

1.6%

310

1,50

2,77

5,89

8,40

8,62

(1,006)

7,62

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

7,60

8,545

9,3

9,629

1.2% 1,829

1.7% -

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

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

1.0% GENERO US REWARDS 1.0% PROGRA MME 478 775

724

261.3

Oct ‘13 168 19 Dec 131 28.2

Captiva

(3,184)

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

168

2012

8,579 6,375

239 227

168

DecCamry 2013

11enDec Volkswag Golf

260

StoCk

3,191

by Model - Novem 5,506 ber6,222 2013

184

ix35

17 i Nov Mitsubish Lancer

4.6%

oct

138

220

Mondeo

USed ImportS VArIANCe SoLd

Imported

Total stock at the end of December 2011

Mar ‘12

289

nov

130

220

34,559

Ford

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

Dealer stock of used car imports in New Zeal 2012

21829 Nov 254Apr ‘13-14.2

sep

132

220

30,322

4,237

5.8%

JUL

214

28,668

1,654

6,828

272 Oct

aUG

28,159

509

6,769

351

NovSwift

JUn

1,082

7,542

8,423

Aug ‘13 South Island Sep ‘13

Jul ‘13

2013

may

6,347

8,051

Jun ‘13

Mitsubishi

Suzuki 15

apr

7,429

11,065

May ‘13

120 Nagoya

Feb

125

4436 120

30 Oct

4.4%

mar

216

5.0%

Days of stock

27,077

-7.2

3342 140

Jan

1,483

20 Oct 405

5.1%

Dec

Apr ‘13

5,908

376

oct

6,800

7,391

115

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

160

35.9

nov

6,329

222

6519

RAV4

180

sep

223

25,594

LATEST SCHEDULE Toyota 3.7 8.3%

281

Suzuki

JUL

26,065

(471)

596

aUG

1,228

117 Osaka 140

618

JUn

5,799

3000

Oct ‘13

JuL ‘13

SEP ‘13

JuN ‘13

AuG ‘13

MAy ‘13

FEb ‘13

APr ‘13

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

7,027

2000 1000

4000

Feb ‘13 North Island Mar ‘13

Oct ‘13

4000

238

JuL ‘13

2012

24,837

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

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

Nissan

160

(2,030)

SEP ‘13

2013

180

104

7,385

JuN ‘13

7962

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

New Passenger Vehicle Sales

- new cars Days stock in nZ572

Mazda Port Calls

26,867

6740

5,355

AuG ‘13

New

5000

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

Jan ‘13

Days of stock

NeW CArS SoLd

Imported

Hyundai

Jan

2013

6000

MAy ‘13

8545

7000

1,714

13,883

Total stock at the end of December 2012

6000

4500

6,102

76,871

North IslaNd versus south IslaNd

7000

Used

5000

4000

7,816

90,754

ytd total RegistRatiOns Used Vehicle

8000

26 | www.autofile.co.nz

2,469

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

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

www.autofile.co.nz Dec ‘12

7,336

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

TWO SAILINGS PER MONTH JAPAN TO NZ 76

207

5,959

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

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

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

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

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

JUL

10,511

205

8,870 Used 6,208 7,894

Jun ‘12

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

12,984

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

6,285

Oct ‘12

10000

MAr ‘13

5500

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

7,742 Biggest May ‘12 decreases

new

New versus used

Nov ‘12

6000

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

PassengeR Vehicle RegistRatiOns

DEC ‘12

6500

StoCk

VArIANCe

2011 MIA stock estimate as at end of December Used

Nov ‘12

JAN ‘13

7000

westport thames napier

new

NeW CArS SoLd

Imported

Apr ‘12

9000

7500

2012)

2012

Biggest increases

APr ‘13

8000

153

MAr ‘13

8500

252

DEC ‘12

9000

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

Jun

91,961

144

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

May

Predicted sales for 2014

Annual high for stockpile

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

APr

6,572 14,865

Aroun

6,729 13,202

try

YTD total

268

Feb ‘14

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

40 stock2012 for too long.

xxxxxxxxx

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

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

40,201

tAuckland Hamilton38,381 (1,820) Whangarei Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston157 North Masterton Wellington 38,538 Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New(1,663) Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandoHamilton Thames Tauranga Rotorua

8,293

2013

100 xxxxxxxxxxx

SOLD The TRUSTED online

wholesale trading site.

6,473

120

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

Total stock at the end of December 2013 autoport.net Jan ‘14

140 2014

Mar

Imported

160

Average Days sales per stock day - YTD at hand

JAN ‘13

2014

180

80 manages levels well Industry

Stock

Variance

NEW CARS

Days stock in NZ - New Cars

Feb

Total sales in 2013

Visit www.autofile.co.nz for the new sedan and Corolla’s 48-year history

Dec

24,837

1,228

Nov

(2,030)

5,799

Dec

7,385

7,027

Oct

5,355

Feb ‘13

Sep

Jan ‘13

and 1,200 station wagons have been sold since the Corolla’s new generation line-up arrived last year. It seems unlikely that supply hold-ups will adversely affect demand and Davis is confident the marque will maintain its strong standing in most vehicle classes, reports Yahoo. He believes overall new sales will exceed gross domestic product, which is tipped to rise by about three per cent, and – while current car prices are attractive – to grow at four times faster than the economy seems unlikely. Davis says that in some ways last year’s tally of 23,705 was still disappointing because demand wasn’t satisfied. Toyota NZ stresses its volumebased business model creates revenue streams for dealers through parts and service from the amount of new and used vehicles sold. Its sales and marketing campaigns focus on added value rather than reducing retail prices, the latter having been the case with some other marques since the start of this year.

AUG

SOLD

Total stock at the end of December 2012

Days of stock

Imported

Stock

Variance

NEW CARS

2013

JAN

ome car companies constrain model supply so they have a constant flow onto the market, with each marque having its own stocking-up policy. David Crawford, of the Motor Industry Association, told Autofile last month that stock often depends on factors such as shipment arrival and availability in the country of origin. And one vehicle to recently experience supply issues is Toyota’s Hilux. Last month, it was the topselling ute on 390 units and Ford’s Ranger came second on 311. But in January, the Ranger topped the ladder with 314 sales, 291 Nissan Navaras were sold and the Hilux was third on 231. In November, the Hilux was top with 585 and the Ranger was second with 482. December saw

1.9%

1.4% 1.9% 1.2% 1.3% 2.0%

7,4

used car stock

Car sales outstrip used imports steadily increasing over the past 14 months – from 305 in January, 271 in December and 239 back in January 2013. The numbers of days’ stock in hand decreased by one last month from 35 in January. Last year’s high was 42 days in December, with a substantial jump from 34 in October to 41 in November. Importers of used vehicles do themselves few favours by overstocking – that’s the opinion of one of the industry’s mainstays. Arthur Murray, of Hatchback Autos Ltd in Kelston, West Auckland, believes cashed-up overseas motor vehicle dealers can achieve betterthan-market returns by pushing more units into New Zealand’s relatively small marketplace. “It’s hard to counter this,” he told Autofile. “The agents in Japan we all used years back are reporting that business from the smaller Kiwi importers has all but disappeared.” He also believes New Zealand dealers’ traditional margins are under increased pressure. “Some people believe they can achieve higher volumes to counter low margins,” says Murray,

who specialises in used Toyotas and – as the name of the business suggests – hatchbacks, and whose stock has also included station wagons, sedans and commercials. “But I think there are just too many dealers, too much stock and too few buyers for that to work for everyone – except for the most efficient operations and those controlled by overseas companies.” Murray stresses the Kiwi dollar’s cross-rate with the yen doesn’t impact on his business too much, but his margins are now coming in at the lower end of the scale. He says the issue with tighter margins has been affecting the local market for about 12 months and – in part – he puts that down to there being 14 to 15 Japaneseowned companies “retailing aggressively” in Auckland.

Dealer stock of imported used cars in New Zealand

8500

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

8000

0.7

7500

7,382

263

7,481

7,615

(134)

7,248

262

Dec

Oct

Sep

AUG

Nov

 27.7%  26.8%  23.7%

financial crisis [GFC]. 1,824 18,653 in January. 11,184 9,360 “Stocking levels then increased David Crawford, chief executive again and they respond to the

officer of and number of new vehicles sold533 10,067 Association (MIA), says current 9,534 are sold. the Motor Industry

the rate at which they

models aren’t sitting around in stock for too long. “The industry tends to manage stock levels quite well and does this day in, day out,” he told Autofile. “My data suggests this is a cyclical thing and levels were no higher in previous years, but they

“They basically go up when 98,971 so sure sales go up, but I’m not 8,319

107,290

about the days stock is held for being longer and can’t explain that. “Average sales per day came down during the GFC and before that they were much higher.” If 80,000 vehicles are sold one year and 100,000 are sold the following year, the average sales per day should be higher – and the MIA is expecting more new vehicles to be sold this year than

USED IMPORTS

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

12,984

westport Masterton timaru

(2,473)

10,511

242

1,735

12,246

223

729

12,975

218

8,813

5,942

9,100

7,142

6,208

5,959

5,026

7,499

Feb ‘12

7,368

5,633

Mar ‘12

7,228

6,499

Apr ‘12

6,285

5,430

May ‘12

7,742

Jun ‘12

8,870

Jul ‘12

7,894 8,589 6,828

6,637

8,155

7,336

8,953

6,484

2,469

25,153

212

119

7,816

6,102

1,714

26,867

211

128

90,754

76,871

13,883

Oct ‘12

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

2013

North IslaNd versus south IslaNd 7000 6740

Used 8545

New

7962

6000 5000

NeW CArS SoLd

Imported

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

9,155

(55)

18,625

(712)

13,830

209

1,800

15,630

205

1,728

17,358

211

1,686

19,044

209

2,630

21,674

207

191

21,865

209

105

819

22,684

211

107

105

115,222

10,891

268

11,424

271

T 41

7,494 in September. There have been two other increases during 2013 – with

Average major Days between imports and sales variances 3,121 in April and 2,507 in May. Stock sales per ofstock Graeme Macdonald, chairman other centres. Island branch of the North the of day YTD at hand Zealand’s “But 80 per cent of New population is in Auckland and Christchurch. “If you add in Dunedin and Wellington, these centres cover a large proportion of the population and all have strong economies.” Year to date, 77,438 new cars have been imported and 68,612 have been registered to give a variance of 8,826 so far this year. Days with stock at hand has been steadily increasing from 78 in

11,424

10,767

305

10,712

316

Imported Motor Vehicle Industry Association, says the current stockpile should correct itself – as it normally does. “If the monthly stockpile was 10,000 on a regular basis it means there are solid holding numbers,” he told Autofile. “North of that and we would be looking at an

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

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

5,355

7,385

(2,030)

24,837

Feb ‘13

7,027

5,799

Port Calls 6,800 6,329

1,228

26,065

Mar ‘13

(471)

25,594

Apr ‘13

7,391

5,908

1,483

27,077

May ‘13

7,429

Osaka 6,347

1,082

28,159

7,542

509

28,668

Nagoya6,769

1,654

30,322

7,272 Yokohama

4,237

34,559

(266)

34,293

7,962

1,400

35,693

8,051

Jul ‘13

8,423

Aug ‘13

11,065

Sep ‘13

7,006

Oct ‘13

Auckland -

238

104

223

117

214

132

220

138

LATEST SCHEDULE

20 130 220 Oct 21 Oct157 220

100

Morning Miracle V5

31 Oct

Liberty V1

2013

30 Oct

2012

goo peo are Ch

ma ne ma

Jap it’s yo wh

m ge

Days stock in nZ - Use

160

140 Hoegh Xiamen Sepang Express 115 222 120 V20125 216 V9

nor so t up,” swi hol

180

26,867

199 U trad hap con Con rece has

Days stock in nZ - new cars

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

StoCk

VArIANCe

Jan ‘13

Jun ‘13

North Island

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

TWO SAILINGS PER MONTH JAPAN TO NZ

Nov ‘12

Used Vehicle RegistRatiOns

New versus used

10000

2009,

855

17,913

during 2012.

There were 54,404 sales in 9,470 2011 62,029 in 2010, 64,019 in(657)

Jan ‘12

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

Variance

SOLD

Imported

NeW CArS SoLd

Total stock at the end of December 2012

8000

did come down after the global

that dropped to this year’s low of

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

Used

0.7

28 al hi s9,067well 263 Annu level manages Industry10,364 8,545 1,819 34

140 120 100

15 Nov

29 Nov

16 Nov

30 Nov

Industry news and analysis as it happens850 5500

1805

1000

4000

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

Used imPORt PassengeR Vehicle RegistRatiOns by city

aucklaNd, wellINgtoN, chrIstchurch 4500

600

Auckland

500 400

9,362

Nov ‘13

Dec ‘13

Wellington 68,612

77,438

ytd total

82,380

2013 predicted sales

Lyttelton

8,826

226

158

7 -Nov -

13 Nov

16 Nov

1 Nov

17 Nov

1 Dec

17 Nov

4 Dec

19 Dec

23 Nov

11 Dec

29 Nov

26 Dec

Make Hamilton

Toyota Holden

Nov '13

Nov '12

1746

1190

495 685

673

201

11 Dec

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

hamIltoN, tauraNga, duNedIN, PalmerstoN North

4320

4000 3500 3000

South Island

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

+/- %

10.7%  Border 8102 inspection 1.8 MPI9.2%

26 | www.autofile.co.nz

Toyota

Holden

Commodore

JUn

2000

apr

2012

5000

222 22 Oct154

may

3000

6,828

Feb

6000

4000

Jan

6000

2013

mar

6500

7000

Dec

(16)

oct

8,648

nov

8,632

xxxxxxxxxxx

sep

261

JUL

7,398

aUG

263

(1,020)

JUn

323

9,629

apr

8,609

may

262

Jul ‘13

Feb

263

252

Jan

494

8,418

mar

Oct ‘13

261

7,862

JuL ‘13

252

7,919

SEP ‘13

Jun ‘13

AuG ‘13

7000

new

APr ‘13

250

Predicted sales for 2014

JuN ‘13

244

8,361

Blenheim nelson rotorua

MAy ‘13

5,876

2,485

Biggest decreases

FEb ‘13

244

3,113

8,460

YTD total

 100.0%  51.2%  34.1%

MAr ‘13

243

7,418

10,945

Biggest increases

new

PassengeR Vehicle RegistRatiOns

Nov ‘12

243

10,531

May ‘13

Feb ‘14

westport thames napier

DEC ‘12

239

Apr ‘13

(OctOber 2013 vs OctOber 2012)

Oct ‘13

Jan ‘14

wanganui gisborne timaru

9000

243

Biggest increases/Decreases By town year-on-year

JAN ‘13

JuL ‘13

850 wds 12

2,763

MIA stock estimate as at end of December 2011

c t o b e r 2 0 13

9000

SEP ‘13

215

JuN ‘13

9500

AuG ‘13

213

MAy ‘13

211

FEb ‘13

209

Nov ‘12

210

APr ‘13

209

MAr ‘13

DEC ‘12

1,264

Imported

JAN ‘13

208

May

10000

APr

Mar

208

7,581

2012 at the end of December 2013 Total stock

Whangarei tAuckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei AucklandoHamilton Thames Tauranga Rotorua

2014

20 2012

Feb

206

8,845

Dealer stock of new cars in New Zealand - Oct 2013

JUL

JAN

209

Mar ‘13

2014

The TRUSTED online wholesale trading site.

autoport.net

try

210

243

206

239

1,499

Total sales in 2013

0 2013

175

1,324

Days of stock

100

(2,930)

6,922

S Dec ‘13

aland - Oct 2013

7,397

8,246

Nov ‘13

120

3105

4,467

Oct ‘13

AJunr o u n

Days of stock

140

Average Days sales per stock day - YTD at hand

Feb ‘13

Sep ‘13

SOLD

Stock

Jan ‘13

Aug ‘13

160

Imported

Variance

Total stock at the end of December 2012

180

dAyS AVerAge SALeS per StoCk dAy - ytd At hANd

USED IMPORTS

2013

Days stock in NZ - Used Import Cars

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

“When pricing up stock, we estimate the retail price, then deduct expenses, reconditioning and the margin, so what’s basically left over from that is how much we will pay. “If the yen’s weak, prices go up. If it’s strong, they go down. But there may be a gap of about a week when they don’t realise what’s going on over there.” Murray is hoping that a decision made last year to reconfigure the business, which has been in operation since 1975, into a tighter, smaller and more focused operation is the correct one. In November, he sold his workshop specialising in entrylevel compliance of imports and leased 2,000sq m of the business’ 3,000sq m site to an overseas-owned company.

Days of stock

he number of used imported cars sold in New Zealand exceeded the amount of units crossing the border in February – for the second month in a row. The 9,100 units imported last month stacked up against 9,155 registrations. The difference of 55 means there were 10,712 units in stock at the start of this month. February’s figures compared to 8,813 imports and 9,740 sales for a variance of 657 in January and a stock-in-hand total of 10,767. It means the year-to-date total for imports is 17,913 with 18,625 first-time registrations – a difference of 712 vehicles less stock. The last time there were more sales than imports since January was last September, when the variance was 134 units – 7,481 units crossed the border compared to 7,615 registrations. The amount of vehicles in stock in February was the third monthly decrease in a row. January’s figure was 10,767 while December’s was 11,424 after 10,891 in November. The average sales per day now stand at 316 and they have been

3.5% 2399 52.0 171 Ship260 your motor vehicles on

3.2%

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