Dealer calls for door to be closed, as Aussie
Transcription
Dealer calls for door to be closed, as Aussie
VOLUME 7 ISSUE 2 MARCH 2016 A CUSTOMERS POINT OF VIEW FIND OUT MORE ON PAGE 22 Dealer calls for door to be closed, as Aussie imports defended B The car was purchased from an unregistered trader - Mukesh Chand, trading as carconnection - who now claims he is broke, and bailiffs have failed to collect anything from him. Monte Wells, chief executive of 4Guys Autobarn in Hamilton, says this kind of problem is all too common, and regulations need be put in place to keep the public safe and informed, with rogue car traders out of the picture. “Car dealers are also victims of this legal loophole that needs to be closed,” says Wells. “We have had an occasion where we purchased a vehicle off TradeMe, which was clean on the VIR card,, and then 18 oth the associate minister of transport and the Imported Motor Vehicle Industry Association are defending Australia as a used vehicle source. But for one significant trader, enough is enough. The trade has come to massmedia attention in recent months, due to customers discovering their vehicles were former write-offs, and winning in the Disputes Tribunal. The latest story involves Auckland woman Sacha Perry, who spent $18,500 buying a three-year-old Mazda 3 on TradeMe, only to find out the vehicle had been imported from Australia and was a flood-damaged write-off. Continued on page 18 INSIDE Mission to Japan Deloittes discusses benchmarks Dealer awards season Massive yard for Hamilton 3 4 6 8 6 8 ESC won’t reduce import age – MIA T he head of the Motor Industry Association says current rules around what can come in as a used import are ‘not right’ - and this is putting vehicles of dubious quality on the road. For their part, importers suggest they are importing what Kiwis want to buy, and replacing even older vehicles in the fleet. AutoTalk has been covering the increasing age of import arrivals in recent months, with this month vehicles 10 years and older making up 57.3% of arrivals. It is a trend Motor Industry Association chief executive David Crawford is becoming increasContinued on page 19 GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: Vehicle Inspection NZ WEEKLY PASSENGER & COMMERCIAL VEHICLE AUCTIONS 2 | AUTOTALK MARCH 2016 | www.autotalk.co.nz NEWSTALK Kiwi-connection opportunity for Japan-based trade M anagement from AutoTalk and the Imported Motor Vehicle Industry Association are heading to Japan next month – and are looking forward to catching up with members of the trade. Alongside official visits, for the first time the association and media organisation are coming together to create two – social evenings during the trip, for those from, or working closely with, the New Zealand trade to meet. To be held in Tokyo and Osaka, the events will be on for two hours in the evening, and will include a brief industry update from IMVIA EVtalk launches Y ou will find attached to this issue of AutoTalk our last magazine, EVtalk. EVtalk includes a bi-monthly minimagazine, and a website - EVtalk.co.nz. While numbers are still small - there are just over 1000 registered for New Zealand roads - growth is expected to rapidly snowball. Last year 457 electric and plug-in vehicles were registered, and this year the market was even further ahead of the pace, with 53 registrations in January alone. There are six plug-in vehicles available in New Zealand new today, with many more set to launch during the year. An even broader variety is potentially available through import channels. For information on how to partner with EVtalk, email [email protected]. AutoTalk Magazine and autotalk.co.nz are published by Auto Media Group 8/152 Quay Street, Limited. P.O. Box 10 50 10, Auckland City, 1030. Ph. 09 309 2444. chief executive David Vinsen, and an introduction by AutoTalk managing editor Richard Edwards. IMVIA North Island chair Graeme Macdonald will also speak. “With the incoming rules around fitment of electronic stability control in used import vehicles, it is a great time to connect with the trade, and discuss their importance to the New Zealand market,” IMVIA chief executive David Vinsen says. “Plus it will be great to socialise with people we work with on a regular basis, if not in person.” Vinsen says a key focus of their visit will be encouraging the listing of ESC on vehicle auction sheets. Edwards says Japan is AutoTalk’s third biggest market of readers. “We like to think we play an important role in keeping the Japanese end of the trade connected with what is happening in New Zealand,” Edwards says. “This is another way we can help.” The dates and locations are: • Thursday, March 10: (Please note there was an earlier error in the date of this event) Osaka • The Hub, Namba Oriental Hotel 3F, 2-8-17, SENNICHIMAE, CHUO-KU, OSAKA, JAPAN • Monday, March 14: Tokyo Tokyo Dome Hotel 1-3-61 Koraku, Bunkyo-ku, Tokyo Email [email protected] to register, with the names and emails of those attending. INDUSTRY SUPPORTERS RECOGNISED BY MANAGING EDITOR Richard Edwards 021 556 655 [email protected] PUBLISHER Vern Whitehead 021 831 153 [email protected] CHIEF REPORTER Robert Barry 022 0180 998 [email protected] SALES MANAGER Dale Stevenson 021 446 214 [email protected] OPERATIONS MANAGER Deborah Baxter 027 530 5016 [email protected] IDENTICAR MANAGER John Stephens 027 530 5023 [email protected] Auto Media Group Limited makes every endeavour to ensure information contained in this publication is accurate, however we are not liable for any losses or issues resulting from its use. Annual subscription: $84 + gst ($96.60) Printed by: Alpine Printers. autotalk.co.nz dieseltalk.co.nz autotalk.com.au evtalk.co.nz carandsuv.co.nz CAR & SUV identicar.co.nz AUTOTALK MARCH 2016 | www.autotalk.co.nz | 3 NEWSTALK Dealer profitability improving – Deloitte D ealer profitability is improving, according to an exclusive preview of information from the annual Deloitte ‘Industry Overview’. Full details of the review will be presented to dealers around the country at free, open invitation, events In Auckland, Wellington and Christchurch over the next three weeks. See the end of this story for full details. The annual report is interesting for the trade – a rare chance to benchmark the average dealer against Deloitte’s top performers. According to the overview, dealer profit has been rising for many, with the increased new vehicle sales volumes, but for some that was not across all their departments. According to the Deloitte Motor Industry Services team, the benchmark top 30% of dealers grew all departments, not just vehicle sales. The average dealer grew turnover by just 2.5%, primarily in new or used vehicles growth, and mostly not in both at the same time. Their parts and service plateaued and for many shrank, which considering the massive car park growth since 2011 is a concern. Profitability is good news, though. The average dealer improved well above turnover gains. The net return on sales is up to 1.8% net profit return on sales, and 3.4% at the Top 30 benchmark level. When comparing the net profit trend over the past 5 years to the growth in NZ New vehicle sales of 60%, Deloitte’s Motor Industry Services Manager Phillip Haynes says it shows how the average dealer is having their profitability pulled up by market growth, whereas a benchmark dealer was already up there and maintained it, with just a little bump in their journey through 2013 and 2014. “The Benchmark Top 30 were also first to adapt and recover profitability during 2014, around 3 or 4 quarters before the average dealer. In effect the average dealer didn’t get a profit uplift until they reacted later, or true retail and local business growth generated more for them in 2015. This agility to adapt is a key strength the top dealers exhibit.” says Haynes. That’s not to say average dealers can’t adapt, just that on average it isn’t as quick or they wait, presumably in favour of some other strategy.” Used vehicles maintained a similar ratio of volume to new vehicle sales in dealerships. With volume up more than turnover, the average values and price mix has lowered. A welcome widening of the range on yards. Compared to Australian dealerships, used vehicles remain a core strength of New Zealand franchised dealers, and to maintain that and new at the same time will require resource and good focus, 4 | AUTOTALK MARCH 2016 | www.autotalk.co.nz which Deloitte say the Top 30 also have a head start on. The question remains if enough is being done in aftersales. “Parts and service in real terms contracted, to some degree through lower warranty work, as recalls content reduces after 2013/2104 peaks and from 2014 WOF changes. The average dealer’s retail jobs did grow marginally in 2015, however this does not compute with that 60% sales growth and an overall 24% growth in the NZ New five-year car parc on the roads, “A dynamic change is required to engage better loyalty and retention.” A lingering issue for the market is staffing, with the data from Deloitte showing that while turnovers and volumes have increased, the dealer staff headcount has not since 2013. The Industry Overview sessions are being held as follows: • Tuesday March 8, 5.30pm @ Deloitte, Auckland (evening cocktails) • Monday March 21, 8.30AM @ Deloitte, Christchurch (breakfast meeting) • Tuesday March 22nd 8,30am @ Deloitte, Wellington. (breakfast meeting) • Book via nworthington@deloitte. co.nz, or call Phill Haynes on 029 77 11 912. NEW ZEALAND’S FASTEST GROWING MOTOR VEHICLE SHIPPING & LOGISTICS COMPANY It’s a simple fact that should make your next motor vehicle shipping choice... logical. Contact Moana Blue now to find out how we make importing from Japan to New Zealand SIMPLY EASIER! 0800 MOANA BLUE www.moana-blue.com SPEED, SERVICE, VALUE & INDEPENDENCE NEWSTALK Awards season underway I t is dealer awards season, and AutoTalk has the winners. Vehicle distributors have been taking the time in recent weeks to recognise their leading dealers, and while we can’t list them all here, we have a few of the key winners. For full details of who has taken home what, visit AutoTalk.co.nz Third win for Nelson dealer The Nelson area’s Bowater Toyota has taken out the Toyota ‘dealer of the year’ award for the second time running. The dealer group which operates in Nelson, Richmond and Motueka – claimed the top award over fellow finalists, Wanganui Toyota and Manawatu Toyota. The dealership’s chief executive, Tony Bowater, believes the award reflects his team’s collective understanding of their objectives, and ability to stay focused and motivate one another to achieve. “I am very proud of our team and humbled to receive this recognition on their behalf,” says Bowater. “They have maintained focus in knowing what our expectations and goals are; to support and assist our customers, ensuring they receive the best service, and reward us with a smile. Manawatu Toyota won the President’s Trophy for outstanding customer satisfaction – an award that rewards consistence excellence in customer satisfaction. The winner is chosen from the three top customer service dealerships in the franchise. Manukau Toyota general manager, Ben also performed Giffin, says the third win exceptionally well shows the commitment over 2015 seeing of the Armstrong team. them claim the Bob “Armstrong Prestige Field Leadership Christchurch has yet Award – for exemagain proven that in plary leadership in 2015 they are the best the advancement dealership in the counof the Manukau try, which is testament Toyota dealership to the hard work and 2015 Award Recipients and its people. commitment of Glen Manukau Toyota and his staff. ering a seamless customer also won the Toyota Finan“I would sincerely like to experience, which is world cial Services dealer of the thank the entire Mercedesclass.” year award. Benz Cars dealer network Farmer Motor Group Lexus of Hawkes Bay was for their ongoing customer managing director Mike named Lexus’ dealer of the dedication and passion,” Farmer was pleased with year. Giffin says. “Without the the array of awards his team tremendous support and took home. Audi team recognised hard work of .ll our staff, this “The team here at Farmer at awards fantastic result would not Motor Group are excepAudi recognised its team have been realised” tionally proud to have been at the Audi Excellence “While it’s important to awarded ‘parts manager’, Awards, held at the Hilton recognise our achievements, ‘service manager’, ‘customer Taupo hotel. we are all clearly focussed satisfaction’ dealer of the A total of 20 awards were on not only reaching, but exyear, and non-metro overall presented to dealers across ceeding these targets again 12 categories. Award winning dealer of the year,” Farmer in 2016.” says. “These awards come dealers received prizes in the Other winners on the form of plaques, trophies and from having a dedicated and night were: stable team, who are fixated hospitality packages. Sales yanager of the Year on ensuring excellence in all Giltrap Audi of auckland – Brendan Mearns, Merareas of the business.” won the metro dealer of the cedes-Benz North Shore year award, while Farmer Service manager of the Armstrong takes Motor Group of Tauranga year – Jeremy Duffy, ArmMercedes win won the non-metro (regionstrong Prestige Christchurch Christchurch’s Armstrong al) dealer of the year. Parts manager of the year Prestige has claimed MerGiltrap Audi dealer princi– Neil Whittaker, Ingham cedes Benz top dealer award pal Gary Periam was delightPrestige. for the third year runed to win the award. ning. “It backs up the acknowlThe awards were edgement of all the hard held at Melbourne’s work from my team in delivCrown Casino. Armstrong Prestige dealer principal Glen Rudhall and his team delivered another year of exceptional customer service to (From left) Horst von Sanden, CEO and be awarded the title managing director, Mercedes-Benz Cars Australia / Pacific, David Blake, general of ‘2015 dealer of the manager, after sales and executive general year. manager Mercedes-Benz New Zealand, Glen Mercedes Cars NZ Dean Sheed and Gary Periam. Rudhall, Ben Giffin 6 | AUTOTALK MARCH 2016 | www.autotalk.co.nz NEWSTALK Volvo in import strategy V olvo New Zealand is adopting a strategy that it thinks is fairly unique in the market - putting no roadblocks in place for used import cars to have some systems localised. Franchised dealers are able to reset most imports systems to english language, and are even able to switch satellite navigation systems to local mapping. “We offer language and navigation software change on used imports through our authorised dealer network,” explains Volvo Car New Zealand product and market manager, Zac Burt. “It is a strategy to bring those used import customers into the authorised dealer network where they can get the best service and parts for their vehicles. “We see it as an opportunity for our dealers to build relationships with these Volvo owners, rather than disadvantage them because their vehicle was first owned overseas,” Burt explains. He says in most cases the used imports are not competing directly with a new Volvo. “Generally speaking, Volvo used imports are of an age and/ or specification that they are not competing with brand new Volvo’s – i.e. a Volvo used import buyer would not consider a brand new Volvo - although they may do in the future,” Burt explains. “So providing service to used import owners is not disadvantaging our new car sales. “I think it is a unique position in the industry.” The ability to change the navigation depends on the age and model, but applies to almost all Volvos from model-year 2014 onwards. Language can be changed on a Volvo of any age. There is a cost, which is set by each dealership. The New Zealand Automotive Industry’s software provider of choice 35 Years 3,000 Clients 10,000 Users can’t be wrong! Automotive & Industry IT ADP Autoline: The world’s most popular Dealer and Distributor Management System from the world’s largest provider. NZ’s most installed and fastest growing Dealer and Fleet Management System with over 400 installations. DEALER MANAGEMENT IT NZ’s acclaimed Workshop Management System runs 50% of independent motor industry service and repair businesses. AUTOMOTIVE SERVICE IT TSI Group’s own computer hosting and cloud services division, and NZ’s largest automotive industry specialist IT services company. proudly exports Kiwi know-how and expertise to the world with clients in 24 countries. Contact: Paul Wilkinson [email protected] 09 5832482 0274475513 AUTOTALK MARCH 2016 | www.autotalk.co.nz | 7 NEWSTALK Giant yard opens in Hamilton N ew Zealand has a new contender for the ranks of largest car yard, with a giant facility opening of the new 4Guys Autobarn premises and yard in Te Rapa. Built on Arthur Porter Drive, Te Rapa, the new site is capable of carrying over 400 units of stock. This is a big milestone for the company, which started over two decades ago with just a 60-car dealership. Chief executive Monte Wells is excited by the new venture. While predominantly a Japaneseimport dealership, the company has often focussed on having sportsmodel stock, and has found traction in recent years with US-import muscle cars. Cars are supplemented on the site by boat-dealer Mastercraft, water powersports store Liquid Lab, and sales of large US-import fifth-wheel trailers. The team onsite totals 30 full-time and 10 part-time staff. Wells says the move has been rewarding so far, with around a 30% lift in sales from its older two-yard setup. He believes the location is ideal, and makes it easier for out of town buyers. “It is at the gateway to the area, you can visually see us from the motorway,” he explains. “We are proud of the fact that it has great presence.” “I am sure people see us from the motorway, turn-around and come back.” Continued on page 9 DEALERS WANTED SsangYong - LDV Two of New Zealand’s fastest growing brands are expanding their dealer network. Great Lake Motor Distributors (GLMD) are seeking expressions of interest from dealers for the fast growing SsangYong range of passenger vehicles and SUVs and the LDV light commercial range. 8 | AUTOTALK MARCH 2016 | www.autotalk.co.nz New products on the way to increase the breadth and depth of both brands - and with this we need additional representation. For more information contact: Rick Cooper [email protected] 027 494 2362 NEWSTALK Armstrongs break ground on new facility in Dunedin A rmstrong Prestige has started construction on a purpose built facility for Land Rover and Jaguar on Princes Street in Dunedn. Adjacent to the existing Armstrong Prestige dealership, the new facility is being built to specific factory design guidelines, and will be large enough to house eight new vehicles, and incorporate full customer lounge, café, merchandise and vehicle configuration facilities. The concept work was done by MSH Architects in conjunction with the New Zealand distributor, with design and drawings by local Dunedin architects, Mason and Wells. Construction company Calder Stewart have started work on site this week. Rick Armstrong says he is delighted to get the project underway. “These are key brands for our Group with huge potential,” Armstrong explains. “To give them a new purpose built, state-of-the-art home in Otago is really exciting. “We expect to open the new facility around August 2016.” Jaguar Land Rover New Zealand’s general manager Steve Kenchington adds: “This new Dunedin facility, combined with the recent re-development of facilities for Land Rover and Jaguar, as well as Volvo in Wellington, show a great commitment by the Armstrong Group to our brands. “With many new models due in New Zealand in coming years, we see big growth opportunities. It is great to partner the Armstrong Group in both cities to help realise that potential.” NYK VEHICLE EXPRESS SERVICE Reliable fortnightly vehicle logistics service JAPAN to NZ PORT TO PORT / DOOR TO DOOR Giant yard opens in Hamilton to Auckland, Christchurch, Wellington, and Nelson Full MPI inspection service from Kawasaki, Continued from page 8 “It is something that hasn’t been done before, a yard that is comfortable to stock a range of cars from $6000 to $260,000 means that we are now a virtual ‘Supermarket for Cars’,” Wells says. “With such a saturated market currently, and so much low quality stock around, it is our emphasis on quality vehicles that keeps us competitive in this current environment. “Close attention is paid to pricing, but there is a general understanding that quality is imperative, and if it is too cheap to be true, it probably is,” says Wells. Osaka, Nagoya and Moji SUN PHOENIX CO.,LTD. + Marine Insurance available For eFFIcIent custoMer Focused servIce contact NYK Auckland Branch 0800 695 546 Christchurch Branch 0800 695 2424 email: [email protected] AUTOTALK MARCH 2016 | www.autotalk.co.nz | 9 NEWSTALK Scion a success – Toyota NZ boss T oyota ended the – relatively – short life of one of its brands last month, ending the run of Scion, its youth-orientated North American brand. What does that have to do with New Zealand? Well Toyota New Zealand, chief executive Alistair Davis was on the team that created the brand, and in spite of its end, he is pleased with what it became. Davis became part of what was known as the ‘Genesis’ project in the early 2000s, while on secondment to the USA, in a team led by now Toyota Motor Company USA boss Jim Lentz. The project had two intentions, to bring new buyers to the brand and change the way cars were sold. “Toyota was incredibly popular with baby boomers,” Davis told AutoTalk exclusively.. “But there was resistance from generation X. “It was also there to experiment with a few different ways of selling vehicles, a process with can be quite slow in America.” Vehicles were small, fuel efficient and different – the Specialists in pre‑shipment inspections in Japan & UK Full border inspections Authorised MPI inspections Authorised NZTA inspections Odometer verification Pre-export appraisal Vehicle history reports first cars being based on the Japanese-market Bb and Ist small cars. The project team experimented with pricing, and event marketing, such as sponsoring music festivals. The brand was tied heavily to music, issuing its own music compact discs every month in the early days. Davis says the initial success was helped by the quirky cars, but not as many models as expected followed. The closing line-up consisting of the GT86, a Corolla hatchback and a badge-engineered Mazda 2 sedan. Davis says, however, the Scion experiment has a legacy. “I guess I am quite proud that it achieved so much in its time,” he says. “Many of the things Scion pioneered have been rolled into Toyota later on,” he says. “And millennials are quite happy with Toyota - it is young and hip now. “70% of those people who brought a Scion were new to Toyota. 50% were under 35 years old, and for 40% of them, it was their first new car purchase,” he explains. “In that sense it was a huge success - dramatically the youngest demographic for a new car brand.” Should it have expanded beyond North America? “No. It was a strategy designed very much for the US, and very few markets had the demographic of people, the wealth of people, who could buy that kind of car.” Besides, he notes New Zealand’s sales model is far ahead of Americas. “We are well ahead - we are much quicker than the American way of buying cars.” JEVIC NZ 09 966 1779 www.jevic.co.nz 10 | AUTOTALK MARCH 2016 | www.autotalk.co.nz AutoTalk editor Richard Edwards travelled California in a Toyota USA, provided Scion FRS – a GT86 here – in 2014. ards Richard Edw DIARYTALK THE DIARY AutoTalk's itor managing ed e th looks at by on month gone nz AutoTalk.co. t to you by Proudly brough February 1 Million dollar marketing spend for Volvo NZ Volvo New Zealand says a new marketing campaign for the brand is costing $1 million. In what appears to be a first for the New Zealand market, Volvo will be sending anyone who buys a Volvo during the 12-week campaign to its home market, Sweden, to visit Gothenburg. As part of the trip for two, they will visit Gothenburg where preparations are now underway for the world’s first autonomous driving trial – Volvo will test 100 of its autonomous cars on public roads driven in normal traffic by members of the public starting within the next 12 months. February 2 To early to assess impact from Toyota plant shutdown Toyota New Zealand says it is to early to know if there is likely to be any delivery delays from a plant shutdown in Japan. Due to parts shortages resulting from an explosion that occurred on January 8 at a steel plant linked to the company in Aichi, Toyota Motor Corporation says it will suspend all production on its vehicle assembly lines within Japan from February 8 through 13. Operations are scheduled to recommence on February 15, and vehicle production on lines outside Japan will not be suspended. February 3 Restructure for Turners Turners Group has announced plans to restructure its divisions and appoint new management. The ‘Cars’ business has been separated into Supply, Selling and Operations functions, with new general manager roles for each area reporting through to Saunders. Turners Group chief executive, Todd Hunter, who was recently announced chief operating officer for the entire Turners Limited listedcompany, says the group’s individual divisions had grown to the point of needing more individual management. Mercedes for Botany Armstrong Motor Group is further expanding its Auckland footprint – with plans underway for a Mercedes dealership in East Auckland. To be called Mercedes Benz Botany, the dealership will be the third for Mercedes Benz in the Auckland area, and tenth in the country. The Armstrong Group will work in conjunction with Ti Rakau Properties, part of the United Industries Group, to develop the 1.1 hectare Ti Rakau Drive site, with Mercedes-Benz being the cornerstone automotive manufacturer on the property. Toyota expecting strong Fortuner sales despite petrol momentum Toyota New Zealand says despite more new petrol-powered and front-wheel-drive SUVs being sold in 2015, it is confident of strong sales for its new diesel-only Fortuner. It is picking a first-year sales target of 720 for the model, which will enter an increasingly-busy segment already occupied by the Ford Ranger, Mitsubishi Pajero Sport, Holden Colorado and Isuzu MUX. The ladder-chassis SUV uses the engine and drive train from the Hilux pick-up, but has a unique body with seating for seven. Hybrid Corolla confirmed for Kiwi mid-year arrival Toyota New Zealand has confirmed it will launch two variants of a Corolla Hybrid mid-year. General sales manager Steve Prangnell confirmed to Autotalk today, that in a similar vein to the Camry Hybrid range, there will be an entry level GLX version and an upscale iTech for the Corolla Hybrid. Hybrid Corolla sales in Western Europe account for more than 50% of all Auris (Corolla hatch) sales. February 4 NZTA engineer hopes wife’s accident will prevent more happening New Zealand Transport Agency senior engineer-heavy vehicles Bill Hyslop hopes the outcome learnt from a freak trailer accident in Taupo involving his wife Marie while on a family holiday, will prevent further incidents. Hyslop commented to AutoMedia Group today that the irony of the accident wasn’t lost on him, as he often has conversations about the safety of light trailers with his NZTA colleagues. “Something good should come out of this. The police are still investigating the incident, and we have no results as yet, but I want to know what happened so we can prevent it from happening again,” says Hyslop. February 9 Campbell opens NZ company The former boss of Fiat Chrysler Australia, who was also a partner in Fiat Chrysler NZ, now has another New Zealand company. Clyde Campbell is still embroiled in court action over accusations of mismanagement while the head of the distributor in Australia – something he denies. While Campbell settled with FCA to freeze some assets while the case was ongoing, he was allowed $1.5 million to invest in a business in New Zealand. 2 Cheap Cars completes airline sale; defends ads again 2 Cheap Cars has concluded a deal which will see its stake in Kiwi Regional Airlines sold. The deal will see the stake in the airline – originally 23%, but diluted by capital raising to 10.4% – to founder Ewan Wilson’s fellow Hamilton city councillor Andrew King. 2 Cheap chief executive Eugene Williams says as a founding shareholder in the airline venture he has been pleased to be able to play a part in its early success. Continued on page 12 AUTOTALK MARCH 2016 | www.autotalk.co.nz | 11 DIARYTALK t to you by Proudly brough Continued from page 11 Industry director dies A long-running director of key automotive industry companies has died. Michael Dossor passed away on Thursday following a period of illness. Dossor was a director of Turners Auctions since its listing in 2002, and was chairman from 2003 until its takeover by Turners Limited in November 2014. He was also a director of Vehicle Inspection New Zealand. VW Amarok diesel fix starts as new dealerships open Volkswagen New Zealand is beginning its emissions recalls programme with the Amarok light commercial pick-up this week, as the brand also sees new dealership premises open or begin development. A new VW showroom has just recently opened in Hamilton East for Ebbett Group, and another will open this week in Palmerston North. VW New Zealand MD, Tom Ruddenklau, says there are plans for an entirely new dealership in Invercargill, as well as a new showroom development for Dunedin, and another showroom development is under way in Tauranga for the Farmer Motor Group. February 10 Australia to open door to ‘new’ parallel imports; confirms ‘no’ to used The Australian Government is opening the door wider to imports, with changes to their Motor Vehicle Standards Act being announced today. From 2018 consumers will be able to personally import a new car or motor cycle from February 15 another country with comparable standards to Australia’s, up to once every two years, if specified conditions are met. It is also streamlining current rules for specialist imports. But as previously indicated, it is ruling out large-scale importing as seen in the New Zealand market. Early reaction to Australia’s announcement expanding imports has met with initial positive reaction here in New Zealand – although further relaxation of rules is hoped for. Imported Motor Vehicle Industry Association chief executive David Vinsen, says the announcement is a strong move forward – and follows a positive relationship between their Australian counterpart – AIMVIA – and the government. While not what was hoped for, it does provide opportunity. Big role for NZ in Intelligent Transport Systems: expert New Zealand, and other small markets such as ours, have a big part to play in the roll out of Intelligent Transport Systems around the world, according to one of the world’s leading experts on the subject. Dr Peter Sweatman is in New Zealand with the Ministry of Transport and ITS New Zealand, and spoke to large groups in Auckland and Wellington this week about the subject. Until the end of 2015, when he left to become a consultant, Dr Sweatman was director of the University of Michigan’s Transport Research Institute (UMTRI). UMTRI and the newly established MCity, an artificial city research facility that Dr Sweatman helped establish, are at the forefront of research into implementing ITS technologies. 12 | AUTOTALK MARCH 2016 | www.autotalk.co.nz Intelligent safety for rentals would force prices up – Motor Industry Association A proposal to require intelligent safety technology in cars rented to foreign drivers has fallen foul of the associate minister of transport, a position backed by industry. New Zealand First has proposed amendments to the Land Transport Act, requiring all rental cars rented to people holding a foreign licence hold an ANCAP 5-star rating, an autonomous braking system, attention assist system, blind spot monitoring system, lane support system, seatbelt reminders and a speed alarm. Associate transport minister Craig Foss says the government will not be backing the amendment, noting the availability of technology is not widespread, and that it would raise costs. February 17 Dealers spending more on premium services – TradeMe TradeMe has today announced a small increase in profit today, but a significant increase in the money spent with it by dealers. In a release this morning, the listed company confirmed a net profit after tax of $38.5 million, up 0.3% year-on-year for the six months to December 31, 2015. Over the period, TradeMe Motors revenue rose 9.7% to $28.3%, with revenue from dealers up 28.9%, and Motorway up 8.9%. Kiwi launch for BMW tech flagship BMW New Zealand has launched the sixth generation of its flagship sedan – the 7-Series. There will be two new models available from launch, including the very first application of BMW xDrive in a right-hand drive 7 Series model. While government ministers ride in the back seat of a specially-specified – and no doubt cheaper – long-wheelbase 730d variant, the public is being offered a 740d xDrive model for $199,000 and a 750i for $239,500. February 18 Aussie ‘soft launch’ for SAM workshop software New Zealand’s most popular vehicle workshop software is about to be launched on to the Australian market. With 50% of the Kiwi market – and still growing here – the SAM workshop system expects to have an immediate impact across the Tasman. “We already have a few dozen SAM sites in Australia,” says Raju Bhana,, the SAM company manager. “About 50% are workshops owned by expat Kiwis, who couldn’t find anything to match the SAM system in Aussie. The rest have come via the SAM NZ web site.” Jeep Wrangler double cab ute in dealerships. Fiat Chrysler New Zealand is partnering with American Expeditionary Vehicles (AEV), to import a right-hand-drive version of the Wrangler-based Brute pickup to New Zealand. The first shipment of both Sport and Rubicon versions of the Jeep Wrangler Brute ute are available in New Zealand Jeep dealerships now. Montana-based American Expedition Vehicles designed and developed the Brute Ute, but the vehicle’s manufacturing takes place in Detroit to OEM standards. February 19 Autohub simplifies pricing structure Logistics firm Autohub has simplified – and lowered – its Continued on page 13 DIARYTALK Continued from page 12 pricing on the Japan-New Zealand route. The company told customers in an announcement last night that it is lowering its standard price for its ‘Package Service’ – effective March 1. The firm will also be simplifying business by abolishing ‘complicated’ volume rebates, in favour of the reduced upfront price. TradeMe looking for feedback on new car search Trade Me is testing a new way for customers to find the car they need – and are looking for feedback on the system. The new ‘Help Me Choose’ currently in ‘beta testing,’ allows buyers to select simple categories of cars based on their need, rather than needing to know specific details. Categories include ‘Cheap and Cheerful’, ‘Performance’, ‘Eco-friendly’ and small and large ‘Family’. NZ dealerships star for AHG as revenue grows 10.3% Automotive Holdings Group’s total operating net profit after tax (NPAT) for the six months to December 31, 2015 has reached A$49.4 million, which is up 7.3% on the previous six months. Revenue for the ‘Automotive Retail’ division in the first half of the financial year was up 10.3% to $2.26 billion while automotive operating EBITDA improved 14% to $80.3 million. AHG managing director Bronte Howson said it was a strong performance driven by the out performance of the Group’s automotive division, and a strong focus on cost controls in the company’s logistics operations. February 22 Record profit for Colonial New Zealand’s only locallylisted car dealership group has announced a boost in profit in its latest half-year results. For the six-months to the end of December, Colonial Motor Group has confirmed a record-high trading profit of $9.429 million after tax, up 13% year-on-year, and 10% higher than the previous high in 2013. In a statement on behalf of the board, chairman JP Gibbons noted the firm benefitted from strong product. Revenue falls for Ports of Auckland The boss of Ports of Auckland says despite revenue for the six months to the end of December 2015 being down – the result overall is ‘solid’. Net profit was up 9.5% to $31.6% on revenue of $106.1 million. Breakbulk, including cars, was down 2.8% to 2.995 million tonnes, while container volume was down 3.3% to 474,613 tonnes. February 23 Strong vehicle lending growth boosts Heartland Marac-parent Heartland has reported a 9% rise in profit to $25.6 million for the six months to the end of December 2015. Net finance receivables increased by $66.5 million to $2.93 billion. However, a reduction in cash and cash equivalents and investments of $64.7m saw total assets decrease by $14.8 million. Motor vehicle lending continued to experience strong growth – increasing by $30.0m. manager. That will put him in charge of the Peugeot and Citroen brands, as well as the roll out of DS as its own marque. February 24 Negative rates positive for Japan trade Government opens doors on autonomous vehicles New Zealand has no rules stopping the use of autonomous vehicles on New Zealand roads – and is pushing that fact the the global automotive trade. It has released guidelines around the testing of the vehicles in New Zealand, in a bid to gain the attention of foreign automakers looking to test their systems. The move has gained the backing of industry body Intelligent Transport Systems New Zealand. Mini boss for PSA brands The general manager of the Mini brand in New Zealand and Australia is swapping BritishGerman cars for French ones. It was announced today that Kai Bruesewitz is joining Sime Darby Motors as general February 25 A move by the Bank of Japan to lower its interest rate – the equivalent of our official cash rate – is set to help the Kiwi import trade. The change is making home and consumer finance far cheaper, and is expected to boost spending on high ticket items. That will hopefully help the car market, which was down 4.3% year-on-year in January – and with every new vehicle sold, there is the potential for another vehicle to enter the market to come to NZ. Motor Trade Finance tweaks name Vehicle finance provider Motor Trade Finance has changed its name – very slightly. While trading under Motor Trade Finance, its official name has been Motor Trade Finances Limited. The ’s’ will now be dropped to avoid clerical confusion. All the Auto Industry HOT NEWS every day as it happens on www.autotalk.co.nz Subscribe online for FREE twice weekly updates direct to your email Find out how VTNZ provides independent Pre-Purchase Inspections, Entry Certificates, Warrants of Fitness and more across New Zealand Visit www.vtnz.co.nz or call 0800 88 88 69 today AUTOTALK MARCH 2016 | www.autotalk.co.nz | 13 INDUSTRYTALK Crawford’s Case brought to you by CRAWFORD’S CASE By David Crawford, CEO of the Motor Industry Association of NZ (Inc). By David Crawford, CEO of the Motor Industry Association of NZ (Inc). MARAC, a division of Heartland Bank Limited. Not so quiet on the Western Front T he MIA completed two substantive submissions in February. The first one on a review of the vehicle dimensions and mass rule for heavy vehicles, and secondly, on the review of the emissions trading scheme. The thrust of our submissions is outlined below. Vehicle Dimensions and Mass (VDAM) The MIA welcomes the review of the VDAM Rule. The Rule has been amended a large number of times since its inception as it struggles to keep pace with real world needs. New Zealand is a receiver of transport technology which is primarily designed for other countries. The parts of VDAM which are unique to New Zealand create an increased domestic cost due to New Zealand being unable to benefit from the economy of scale which comes from vehicles designed and produced in large numbers. The uniqueness of the legalisation creates barriers to the use of foreign certification and performance standards. Initially the MIA hoped this review would have been structured along a more fundamental basis, endeavouring to align our legislation with international standards, so there is capacity to accept foreign initiatives to improve safety, efficiency and environmental performance, without a reduction in capability to meet the needs of a growing transport task. In the MIA’s view the discussion document was conservative and not forward looking to the extent it could have usefully been. From our reading of the proposals, they did not adequately address long-standing issues with rear engine vehicles, which are predominantly buses. There are also a number of mat- ters relating to tyre size and axle mass combinations that need addressing. Along with proposing a range of changes to axle limits and tyres, the MIA proposed that rear engine buses are treated as a separate category of vehicles with their own unique VDAM limits. Review of the emissions trading scheme The MIA recognises the impact on the world if emissions of greenhouse gases are not limited, and that the global motor vehicle industry has its part to play as a supplier of products that produce CO2. In the new vehicle space context, New Zealand is a technology taker. Emissions are reducing for new vehicle models in line with what is happening overseas, therefore policies that enable New Zealand to be a fast follower should be considered. Noting that New Zealand will not be able to meet its future obligations (targets recently agreed from the Paris meeting of the parties) from domestic reductions alone, it is important the ETS should, in our view, be viewed within a wider set of policies. Within these wider policy settings, the New Zealand transport sector can play its part in reducing emission levels, if the right policy settings across our economy are put in place. In the view of the MIA, the policy settings most likely to help accelerate the reduction in greenhouse gas emissions from transport are: • Ones that accelerate the uptake of new technology, and those policies that limit the age at which used imports come into the country, as this slows down new fuel efficient technology penetration rates. • Policies which address the emissions of the total fleet, including the use of vehicles, will result in more overall savings than policy initiatives, which only focus on a segment of the market - for example, new vehicles added to the fleet. • Policies that influence how a vehicle is used/driven • Encourage the uptake of vehicles fitted with co-operative intelligent transport systems (C-ITS) which facilitates greater efficiency of vehicle travel times and routes. New Zealand has a unique emissions profile, characterised by several defining features: • Approximately 48% of our emissions profile is from agriculture which is not subject to the emissions trading scheme • Our high level of renewable electricity generation, and • The transport sector contributes 17% of New Zealand’s total greenhouse gas emissions, the third largest sector in our country’s emissions profile. Practically, there is a limited ability to reduce greenhouse gas emissions from the transport sector alone. Consequently, our view is that if New Zealand is to reach its 2030 targets, then we need both an all-sectors approach, and the ability to purchase CO2 reduction units from the international market. Once an effective international market has been established, agriculture should be included in the ambit of the emissions trading scheme. The current two for one surrender policy needs to be removed sooner rather than later, and at some point the need for a price cap could be usefully reviewed. Drive away with finance from MARAC marac.co.nz Provided by Heartland Bank Limited MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply. 14 | AUTOTALK MARCH 2016 | www.autotalk.co.nz heartland.co.nz INDUSTRYTALK VINSEN‘S VIEW The monthly report from Proudly sponsored by chief David Vinsen & Back to the future…with electric vehicles T hey say there’s nothing new under the sun, and in the case of electric vehicles, that’s probably true. Some of the very first cars were batterypowered. Now the wheel has turned full circle: it seems that electric vehicles (‘EVs’) are going to play a significant role in the make-up of our vehicle fleet in future. But why am I banging on about this? After all, EVs currently make up only a tiny proportion of our fleet, the uptake is really slow, and the common perception is that although EVs are a ‘nice idea’, they are too expensive, their range is too limited, there are not enough charging stations, and the only people driving them are true believers: a tiny minority who are ardent environmentalists or early adopters of technology. All of which may have been true until recently, but I think things are going to change. And maybe more quickly than any of us realise. There are a whole lot of interesting developments - locally, nationally and internationally - that point to an acceleration of the uptake of EVs into our fleet. I’m interested in EVs for a number of reasons, and on a number of different levels. Firstly, at a personal level, I bought an imported used Nissan Leaf last year to add to a small fleet for city driving. I drove it myself for a couple of months, and really loved it, and it’s now being used by a sales person. Six months down the track, I am able to accurately compare its economy and costs with three other small city cars: a Suzuki Swift, and two Toyota Yaris, do- See us first for... 0800 GO VINZ ing similar mileage and in similar conditions. And the Leaf is streets ahead, with a similar capital cost, but only a fraction of the running costs. A really useful comparative exercise, which bears out the results from EECA’s cost calculator. At a national level, I know that New Zealand is one of the countries best suited for EVs, because of our high percentage of electricity generated from renewable sources. The government and the power companies recognise this, and I am confident that there will be initiatives, both government and commercial, to push the case for EVs. Specifically for the Imported Motor Vehicle Industry Association, it is important to keep a ‘watching brief’ on any vehicle trend, and be prepared to assist members. Used vehicle importers are rapidly overtaking the new vehicle trade as the number one source of plug-in cars, and for purely battery-powered vehicles have lead for some time. Members of the supply chain – including our members and supporters, are actively developing this market. I am sure that it is no coincidence that Simon Bridges is the minister of both Transport, and Energy and Resources – there is a natural synergy between these portfolios. The minister is a champion of EVs, and I am sure that there will be positive policy developments to take maximum advantage of the opportunities that EVs offer for our country. And any such policies will be well supported by entrepreneurs, followed by larger commercial interests. Watch this space! In terms of the auto industry, I am interested because of the potential that EVs have to radically change the market over time. There is a lot of discussion about intelligent transport, connected and autonomous vehicles, etc, and in almost every case, the ‘intelligent vehicles’ being developed are electric powered, or at least hybrids. The way of the future, and likely to bring major changes to the products we sell, and how we sell and service them. But just because it’s a good idea doesn’t mean that it’s going to happen anytime soon. There are, however, many current activities and initiatives that show an increased focus on EVs. I’ll list a few of them: • Government interest and policy developments, under the active leadership of the minister, and being worked on by MoT and EECA, among others. • Drive Electric, the association promoting EVs, which now has a much stronger membership, and includes both vehicle and power interests… and working closely with government and industry • A visit in March from the head of Norway’s EV association. Norway is the country with the highest proportion of EVs in its fleet, and there is no reason why we can’t emulate them • An official delegation from China in March, promoting and showcasing their range of EVs…everything from Specialists in Pre Shipment Inspecons Continued on page 21 JEVIC Authori se NZTA B d order Inspecti on Agency AUTOTALK MARCH 2016 | www.autotalk.co.nz | 15 MARKETINGTALK What do you do with lost leads? H aving worked with dealerships for a number of years I notice one interesting fact that stands out year after year – dealerships are far better at communicating with their existing customers than they are with people who have yet to buy from them. It’s well known that attracting new customers is much more expensive than retaining current ones, so this is not necessarily a bad thing. However as its a sales orientated, commissionbased industry, it’s always struck me as slightly odd that dealerships are better at playing the patient long game, than they are at seizing new opportunities. A few years ago we did some secret shopping and discovered that roughly 20% to 30% of email enquiries didn’t receive a reply. This contrasts sharply with what I see at the majority of dealerships, with how they handle, their current customers. A about determining what defines a lost lead – to the point where we are shortly Matt Darby works for AutoPlay who specialise in pre-sale lead management. To find out more call (09) 361 1505 or email [email protected] lot of dealerships have newsletter emails to build a sense of rapport and community. Many have scheduled follow up programmes once they sell a car to a customer – often contacting them at 3 month intervals and on the anniversary of their purchase. However when following up new sales opportunities there is often not much structure in place. The issue becomes even more apparent when you consider leads that are closed as being ‘lost’. Many dealerships are becoming more concerned releasing some development to restrict who can close leads within our AutoPlay ‘sales pipeline’, and notifying management when this does happen. These customers that are ‘live’ but have not purchased from you, and those leads deemed as closed are often neglected in terms of structured communication. We’ve bridged the gap with our ‘live leads’ product which emails potential customers towards the end of each month to requalify them and prompt them further along the road to a sale. It must be noted that pre-sale communication does require a slightly different approach to the way that current customers are communicated. These customers respond better to a more ‘classified’ approach focussed on specific vehicles that they may be interested in. As important as prompting the sale, it can also be useful to survey those customers that decided not to buy from you. Brands in particular do a great job of surveying actual customers on their buying experience, but again there is a big gap where people that don’t buy are never surveyed. In many ways these are the most important people to communicate with as understanding why they did not buy could lead to additional sales in the future. Aussie ‘soft launch’ for SAM workshop software N ew Zealand’s most popular vehicle workshop software is about to be launched on to the Australian market. With 50% of the Kiwi market – and still growing here – the SAM workshop system expects to have an immediate impact across the Tasman. “We already have a few dozen SAM sites in Australia,” says Raju Bhana, the SAM company manager. “About 50% are workshops owned by expat Kiwis, who couldn’t find anything to match the SAM system in Aussie. The 16 | AUTOTALK MARCH 2016 | www.autotalk.co.nz rest have come via the SAM NZ web site. “We are pretty confident of success,” adds Bhana “You have only to look at the impact that Australian workshop software makes in NZ – very, very little.” MARKETINGTALK The very complicated maze of digital marketing M arketing within the retail automotive world unfortunately becomes increasingly complicated, year-on-year. Many long serving dealership owners enviously reflect back to former years when car marketing was comparatively uncomplicated. The art in those earlier days was all about competing with your fellow dealers, in either local newspaper or radio advertisements, or by direct mail marketing. That’s not to say newspaper, radio or direct mail no longer have a place in today’s marketing repertoire it is just that these methods no longer drive customer enquiry volumes as they did in former years. Today one has to fish where the customers are! Any budding vehicle purchaser has access to extensive information from a vast selection of Internet-based sources. They use a range of digital devices to access this information, with mobile smart phone rapidly becoming their favored device. No longer is it just a case of uploading all your relevant vehicle stock photographs, plus specifications, to your own website and third party listing sites, and waiting for the phone to ring or the prospects to flock to your yard or showroom. The next questions then become, if what we currently undertake is insufficient, then what else do we do and who does it for us? An appropriate start point is to conduct a comparison of what were the relevant information sources for your typical retail car buyer, say in the year 2000 compared to a buyer of today? What sources of information are no longer relevant? What devices does a buyer use today to gain their information compared to 15 years ago? How has this ease of gathering information influenced buyer behaviour? How effective is our dealership website (mobile compatible) to present all relevant information on vehicle pricing, photographs, supporting video and specifications? How effective is our website to present all relevant dealer staff, dealership culture, as well as retail branding of the dealership? How effective is our website Peter Aitken [email protected] or 021-940 318 SEO organic ranking and do we secure additional enquiry by means of selective SEM (PFC) advertising? Start small, get good at things that matter, and start from there. Do we effectively use Facebook to expand our dealership/staff branding communication as a sound and trust worthy corporate citizen? Do we prepare regular content rich blog information to supplement our brand at retail messages on our website? The next step for any dealership is to honestly answer the question: Can we complete all that is required to cover all the current day buyer information requirements? For the majority of dealers in this country unfortunately the answer will be no, as many dealers do not have the resources. The digital information maze is too complex and, unfortunately, forever on the advance, with combinations of latest digital products or information mediums, on offer to any intending new or used car buyer. Many dealers will need help from an external digital provider(s). To assist the search and identification of a suitable provider I provide the following suggestions from a number of commentators in a February 18 article in DrivingSales News entitled “How do dealers effectively select and implement technologies at their stores?” Only 36% of shoppers are using dealership websites to shop for a vehicle. Shoppers found sites confusing, didn’t trust the information and they (the shopper) didn’t want to provide personal information. Many websites are still characterized by excessive calls-to-action, uninformative and/or exuberant language designed to get the customer in the door, in other words moving showroom practices that customers find distasteful to the dealer’s online presence. Dealers need a strategy of “starting with who we are” and “what do we stand for” and communicating that throughout the dealership before any technology solution(s) are put in place. Dealers need to wary of working solely on the tangible subjects of leads or vehicles sold, but also need to take account of the broader holistic customer experience requirements. Start small, get good at things that matter, and start from there. Research in depth any new technology under consideration because there is always pain associated with implementation. Integration is vital; dealership data has to be made to talk throughout all departments. Dealer staff will require both input and buy-in supported by extensive training at the time of installation of new technology. AUTOTALK MARCH 2016 | www.autotalk.co.nz | 17 NEWSTALK Dealer calls for door to be closed, as Aussie imports defended Continued from page 1 months later became flagged for being accident damaged once its history had been noted after the fact. “The whole industry needs to be regulated in this respect, because it’s the dealers who are trying to provide legitimate business in New Zealand who suffer, along with the public, because unregistered individuals and some commercial outfits can import vehicles that have been written off overseas and sell them at a cheaper price.” He says the public is becoming so obsessed with ‘the best price’ that people will often overlook a car’s history and its quality for the sake of saving a few bucks. “There is no pot of gold with a whole lot of cheap cars, or else we’d all be buying them. We all buy cars from the same place, so if it seems too cheap to be true, it probably is.” Wells told AutoTalk, the access for such cars from Australia should be closed. He notes Craig Foss they do not see the same issues out of other source markets. “This view is supported by a huge number of us dealers,” he says. “Most of the people doing this are not in the industry, and they are undermining the industry.” IMVIA chief executive David Vinsen believes the channel overall is not being abused. “There are vehicles coming in that have been written off for very small things, usu- ally for commercial reasons, such as minor hail damage,” he says. “If we believe in the robustness of our entry certification, there should be no issue,” Vinsen says. Vinsen says the issue is more what information should be provided to the consumer - in the last Stella Stocks case the trader did not provide a Consumer Information Notice and a Vehicle Information Report was not sought. In summary, he thinks the issue comes down to the people using the system. “I think it is people who are unscrupulous, taking advantage and pushing the boundaries in a good system,” Vinsen says. Associate transport minister Craig Foss says he is aware of the issue, but also notes that if the process is followed, such cars should be identifiable. “If a vehicle is identified on the PPSR as written-off, it will be flagged in the Motor Vehicle Register (MVR) as a damaged import, and listed on the NZTA website as being previously written off,” he notes. “I strongly recommend thoroughly researching a vehicle before buying it. “This should include getting a pre-purchase inspection report and checking on the NZTA website.” Damage not visible Automobile Association The case involving Sacha 18 | AUTOTALK MARCH 2016 | www.autotalk.co.nz Perry’s Mazda3 had an interesting twist, in that the vehicle had been inspected by the Automobile Association, at the request of the buyer - getting a largely clear report. AA general manager motoring services, Stella Stocks, says interpretation by media that the damage had been ‘covered up’ was incorrect. Flood damage would not necessarily be visible after the repair and compliance process. “The process that statutory write-off vehicles that are flood damaged go through, as part of entry certification - i.e., they are stripped out, cleaned thoroughly, inspected and approved by a repair certifier and then a sealant is applied.” The AA inspection was done not long after that process. “The vehicle inspection carried out by AA was done some nine months ago, so it’s feasible that rust wouldn’t have been evident, as the inspection we did was done approximately one month after entry certification.” Stocks notes the fact the vehicle was damaged is normally noted on Consumer Information Notices, and a vehicle history report would have also picked up the issue. This is not part of the physical vehicle inspection. “We do, however, offer both reports to consumers, and several do buy both the inspection and history report, so they get a complete picture of the vehicle they may be purchasing.” Auto Media Group partners with EV conference A uto Media Group - specifically its titles AutoTalk New Zealand, AutoTalk Australia, DieselTalk and EVtalk - are now media partners in a major electric vehicle conference being held in Europe. We will be cross-promoting, and providing live coverage, from the Electric Vehicle Europe 2016 in Berlin in April. Arguably the biggest EV convention in the world, running as part of a broader technology-focussed event, this year it is titled Electric Vehicles: Everything is Changing Europe 2016. “Electric Vehicles: Everything is Changing will reveal the latest advances and newest roadmaps in this radically changing industry. We balance the presentations from the giants with new faces revealing important Continued on page 21 NEWSTALK ESC won’t reduce import age – MIA Continued from page 1 ingly concerned about, and is blunt in his criticism. “New Zealand’s inadequate policy settings around imports of used vehicles, means we are now allowing imports of older and older vehicles of dubious safety and environmental quality,” Crawford says. “In effect we are again importing someone else’s waste disposal problem. “By allowing older and older vehicles to enter our fleet, we slow down the rate of introduction of the latest safety and environmental technology,” he claims. “The sellers of these old imports might make a quick buck or two, but all they are doing is passing on a repairs and maintenance bill to the owner of these vehicles, the traders do not want to be very people who can’t really trading in older stock. afford it. “This is about buying the “The overall fleet gets cars that the public wants, older and older. We are now within commercial bounds,” creating a looming scrapVinsen says. “No one wants page crisis.” to be dealing with old stock Crawford believes new - there is a self-limiting rules requiring electronic factor, in that it is harder stability control will make to sell.” little difference to vehiHe notes finance cle age. options are limited for “The MIA is not cars much older than against used imports, ten-years-old. but we are concerned He says vehicle that the current polsafety improves icy settings are not incrementally -, and right, when we allow David Crawford even older imports cars with only a few are better than the vehicles years of life left in them into they are replacing which are the country on mass.” heading to scrappage, which Crawford reiterated on average are twice as old. to AutoTalk his call for an eight-year rolling age ban. This, he claims, is not just Imported Motor Vehicle a New Zealand issue. Industry Association chief “Vehicles are getting betexecutive David Vinsen says ter, lasting longer, and fleets are getting older throughout the world.” Vinsen reiterated his long-term position - the best thing the government can do to reduce vehicle age is build a strong economy so that people can afford better cars. In answers to questions from AutoTalk, associate transport minister Craig Foss claimed the overall vehicle age is stable. “The average age of vehicles in the New Zealand fleet has been stable at just below 14 years for some time,” says Foss. “The Government recognises that newer vehicles tend to have more safety features, and we encourage people to buy and drive the safest vehicle they can afford.” TRADE DIRECTORY について AutoTalk が持つ AutoTalk Trade Directory は、あなたの会社情報を NZ の車 業界に提供するものです。 AutoTalk の月刊誌・メールマガジンそして、ウェブサイト www.autotalk.co.nz/tradedirectory にて、その情報を配信します。 下記の情報掲載を、月間¥19,500 にて承ります。 会社名/電話番号/E-mail アドレス/ホームページアドレス/会社情報コメ ント(15 文字) TORY IREC TRADE D DOCUMENT N DESCRUCTIO SORIES お問い合わせは下記までお願いします。 AutoTalk 社 担当:Business Manager, Dale Stevenson Tel : +64 21 446 214 E-mail : [email protected] ACCES ENT A1 DOCUM DESTRUCTION UTE MASTER RETRO VEHICLE EMENT ENHANC ELECTRICIAN ICAL GOOD ELECTR & AGENTS S WHOLESALE EMPLOYMENT SERVICES RT.NET AUTOPO AUTOMOTIVE AUTOTERMINAL AUCTIONS NCE AUCTIONS MANHEIM 09 918 0500 o.nz www.manheim.c Zealand’s is New Manheim of automo largest provider Auctions services. tive auction held weekly. z s4u.co.n www.tyre Go to dealer locator to find your local dealer AA INSURA NZ SUPER SHINE KERRICK new vehicle. 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Andrew Smith 027 www.euro land.co.nz STORAGE AVS VEHICLE NS SOLUTIO STORAGE VEHICLE TRANSPORT CS LIMITED PTS LOGISTI CS LIMITED AUTO LOGISTI LOGISTICS TRANSPORT LIMITED ND METRO VTS AUCKLA IES CAR DELIVER Auckland’s largest MTA is NZ’s ntative dealer represeise group: Franch dealers, dealers, used dealers. ycle and motorc ta.org.nz | www.m 0800 001 144 issues rail, bus 15 between d from page transfers variable pricseamless It will require . It will need real time demand, services manage and ferry system to require intromotorway funds. It will ing of the and raise from electric improve service technologies, working and an transport s to remote ducing new mous vehicle ks. and autono networ d will need transport d Aucklan intelligent well-connecte y through eastern Finally, a capacit ation of investtransport increased better prioritis a difference. and much really make people in Auckland, projects that million ment into Aucks another AND NZ project 35 years away. We SHIPPING Statistics less than unity. by 2050 – g city of opportwe’ll need LOGISTICS Auckland but growin , but SELL YOUR E? E land is a small issues if we choose DO YOU P MARITIM ARMACU these to do so. TO THE TRAD LIMITED can solve to have in the box SERVICES tool SERVICE fortunate to use every l level, we’ve been Stevenson r holidays, Talk to Dale the summe At a persona B years, AUTOHU tising your visitors over for many ex-pat family hadn’t been ‘home’ 09 411 7425 about adver d through .nz in [email protected] some of whom ng to look at Aucklan way business refreshi The easiest and it was difand cars quite is ship your Auckland globally. their eyes. nted that up to speed other vehicles They comme they left, now right major cities when in the from nce ferent ing they experie way ahead. respects with everyth and in some security and that with the world, G d’s of noted SHIPPIN they ar, cities, Aucklan DOLPHIN In particul ns in many n rather AGENCIES key concer 9 309 2444 a real attractio but it’s terrorism Phone: +64 S AND ness is now placed, CUSTOM 21 446 214 ses relative remotentage. So we are well JACANNA .co.nz Mobile: +64 ent, busines utomediagroup FREIGHT than a disadva and central governm the most Email: dale@a local G that we make up to us: phy OUGH SHIPPIN nity, to ensure and geogra MCCULL and commu nities that history | 21 LIMITED totalk.co.nz of the opportu us with. 2016 | www.au ed FEBRUARY have present BLUE AUTOTALK Continue brands. PAINT & FABRIC SUPPLIERES GARDX 739 0800 242 z www.gardx.co.n Premier Paint g New Zealand . Providin & Fabric Supplier s that achieves profit solution results. E AD W TR OUR NE CTORY DIRE MOANA CLEANERS .nz www.autotalk.co Level 8, Harbour View Building, 152 Quay Street, Auckland 1010, T: +64 9 309 2444 AUTOTALK MARCH 2016 | www.autotalk.co.nz | 19 TRADE DIRECTORY The comprehensive guide to every service a dealer could use AUCTIONS MANHEIM AUCTIONS 09 918 0500 www.manheim.co.nz Manheim is New Zealand’s largest provider of automotive auction services. Auctions held weekly. NICHIBO 09 374 4436 www.nichibojapan.com We have a wealth of knowledge and experience in auto auctions throughout Japan which we know will enable us to assist you in making your next purchase. FINANCE AND INSURANCE www.tyres4u.co.nz AUTOSURE Phone: 09 489 9107 www.autosure.co.nz Autosure NZ has been a leading provider of automotiveowner protection policies for the NZ retail motor vehicle industry since 1986. OXFORD FINANCE Go to dealer locator to find your local dealer 0800 263 264 [email protected] www.oxfordfinance.co.nz Oxford’s friendly team can offer you flexible solutions to finance the purchase of your new vehicle. European cars - all makes, all models 027 496 3191 [email protected] www.euroland.co.nz MTA is NZ’s largest dealer representative group: Franchise dealers, used dealers, and motorcycle dealers. AUTO-IT LIMITED 0800 776 611 [email protected] Changing your DMS? Let Auto-IT help you, the leader in New Generation Dealer Management Systems. SYSTIME 09 583 2482 [email protected] Autoline DMS – World leading Automotive Dealer Management and Distributor/Manufacturer Systems. ORION 09 583 2482 [email protected] NZ’s #1 Dealer Management System installed in over 450 businesses.Sales Workshop, Parts, Fleet, Rental, CRM. SAM 09 583 2482 [email protected] The ultimate specialist Workshop Management System suite. Buying now Andrew Smith IT MANAGEMENT SYSTEMS PROVIDENT INSURANCE Phone: 0800 676 864 Email: [email protected] Contact: Steve Owens Chief Executive Officer Helping dealers “Make Profits Grow”. Specialist F&I training, support and products to retail motor vehicle traders. 0800 001 144 | www.mta.org.nz FINANCE AND INSURANCE UDC FINANCE 0800 500 832 www.udc.co.nz Your first choice in automotive lending. Fixed Rates. Fast Approval. 20 | AUTOTALK MARCH 2016 | www.autotalk.co.nz Range of options to suit. INFORMATION SERVICE PROVIDER MOTORWEB Phone: 0800 843 847 Email: support@motorweb. co.nz NZ’s leading vehicle history check provider, delivering online services to all sectors of the motor industry. IT SERVICES AUTOPLAY.CO.NZ 09 361 1505 [email protected] Autoplay use the latest technology to deliver a suite of smart digital tools to our customers. ANNGOW MARKETING 027 207 9032 www.anngowmarketing.co.nz Independent digital marketing services & advice to the automotive industry, over 14 years’ experience, contact Joel today! PARTS REPCO 0800 800 878 www.repco.co.nz Repco - over 800 highly trained staff, 82 stores nationwide and home to New Zealand’s leading automotive brands. PAINT & FABRIC SUPPLIERES GARDX 0800 242 739 www.gardx.co.nz New Zealand Premier Paint & Fabric Supplier. Providing profit solutions that achieves results. SHIPPING AND LOGISTICS AUTOHUB 09 411 7425 [email protected] The easiest way to ship your cars and other vehicles globally. VEHICLE BROKERING SBL INTERNATIONAL VEHICLE BROKERING 03 377 6578 www.sbltd.co.nz “NZ owned and operated SBL continue to set the motor industry benchmark for importing vehicles” VEHICLE INSPECTION VINZ Vehicle Inspection NZ 0800 GO VINZ (0800 468 469) [email protected] New Zealand’s best choice for WoF / CoF, Inspections, Certifications and much more. VTNZ 0800 88 88 69 [email protected] NEWSTALK Auto Media Group partners with EV conference Continued from page 18 CAR & SUV Car & SUV is NZ’s first and only dedicated professional vehicle news and reviews website. www.carandsuv.co.nz Vehicle Inspection NZ breakthroughs,” IDtechEx says of the event. Topics will include new technologies such as thermoelectric and suspension regeneration, carbon fibre and load bearing solar body work, and integration of electronics. “Electric Vehicles: Everything is Changing is shaping up to be a landmark event for the expansion of the global EV industry, and we are proud to be involved, “ Auto Media Group publisher Vern Whitehead, who is at- Back to the future…with electric vehicles Continued from page 15 • DO YOU SELL YOUR SERVICE TO THE TRADE? Talk to Dale Stevenson about advertising your business in ADE R T W E N OUR DIRECTORY Phone: +64 9 309 2444 Mobile: +64 21 446 214 Email: [email protected] tending the event, says. “We are putting a stake in the EV space now with our new EVtalk publication, and I am excited to understand the full scope of what is coming. More information on the conference can be found at http://www.idtechex.com/electric-vehicles-europe/ show/en/. • • commuter cars to heavy vehicles and buses. And as we saw with the introduction of Chinese cars, once they have decided to enter a market, the Chinese will be very determined and prepared to play a long game. And they’ll maybe lead with price. Talk of USA’s Department of the Environment negotiating with VW to open an EV manufacturing plant in the States, as part of its compensation for the company’s diesel emissions cheating. A range of publicly-accessible fast-charging stations being progressively developed throughout the country, the most recent being opened by minister Bridges in Tauranga on Friday, March 4. Auto Media Group, the publishers of AutoTalk and DieselTalk, have identified an opportunity to launch a new specialist publication EVTalk. They believe that the advent of EVs will, over time, be as significant for the industry and for the motoring public as was the introduction of used vehicle imports in the late eighties. • Regular announcements of EV developments from vehicle manufacturers in Japan, Europe, USA and China • Conferences and seminars on all aspects of EV development. None of these events in and of themselves confirms that EVs are about to take over, but the overall sense is that EVs display a convergence of technologies whose time has come, in spite of the recent slump in oil prices. I’ll be attending an international conference on EVs in Germany in April, and I’ll be very keen to see how accurate my comments and predictions are, by comparison with the official information that will be available. Updates to come in future columns! AUTOTALK MARCH 2016 | www.autotalk.co.nz | 21 F&ITALK Proudly brought to you by the market leaders A customer’s point of view By David Clarkson Account Manager Christchurch A nother month, another article. Advisors to the retail motor trade are always offering advice on how to maximise the financial return to dealerships from selling cars and the associated finance and insurance products. Contributors have all offered good advice and sound processes to assist dealership staff, but do dealership management and staff act on the articles? Do they do anything about the advice other than suggest that what they have read is a good idea, and that they should do something about improving their processes and systems? For an F&I department to operate successfully, and generate meaningful income and profit to a dealership, the business owner and/or dealer principal must drive the processes day in and day out. They must have the full buy in and commitment from his/her vehicle sales managers to ensure that every client who enters the business, contemplating buying a car, or who buys a car, is introduced by the salespeople to the business manager. Only then does the business manager get the opportunity to introduce the range of products and services that your business has available to all your clients, to assist them in purchasing their car, and provide them with ongoing protection over the coming months and years. The reality is that most dealership staff have good intentions but more often than not things like selling cars and doing deals get in the way. Sound familiar? I know that you have all heard the same message over and over again, so I won’t hammer you with the detail except to say In order to make change you have to get yourself and your staff to set aside time to make changes and then measure the difference. Let’s look at some other things that can be overlooked or taken for granted. Dealership appearance Take a step back and put yourself in a customer’s shoes. What is the appearance of your business really like? Is it clean and tidy and well presented? Is it sign posted in some way so that your customers can easily find their way to the sales office or hub of the dealership? Take a friend or acquaintance across the road and ask them to give you an honest opinion as to how they view your businesses appearance. tomers point of view - rather than your own - is vital. Also a high percentage of internet traffic these days is from mobile devices, and it is increasing, so does your solution work well here? If you don’t have any staff capable of dealing with this side of the business it would be well worth your while to employ a contractor to get you set up, and then keep things fresh. Appearance Are your staff professionally presented? Do they wear ‘business attire’ or do they wear jeans/shorts and a shirt? There are probably many reasons for certain dealerships to be dressed Your digital shop front And don’t forget that in today’s world your Franchise December January February shop front also includes your Finance 40% 43% 29% MBI 40% 36% 38% digital presence and appearance PPI 9% 12% 11% - is your website fresh, clean and GAP 20% 22% 7% easy to navigate and does it also MVI 13% 11% 15% Finance December January February provide vehicle finance and inMBI 39% 41% 40% surance information and links to PPI 46% 44% 47% finance application forms, etc. GAP 15% 11% 23% MVI 28% 25% 20% If your potential customer, 16% 10% 30% who may be a shift worker, were Profit per December January February to lodge a finance application at unit sold 2:00 am in the morning, will they Franchise $1,012.00 $956.00 $887.00 $1,002.00 $1,191.00 get an automated email response Used/Import $1,041.00 advising that you have received their application and someone will be in one way or another, and a decision here really has more to do with what would touch the next day etc? your customers expect? An overriding statement in the But one question should always be digital space should be “don’t make me think” because if customers can’t easily front of mind and that is, how easy is it to identify staff on the yard and out in find or navigate information they will public? Are you getting the most out simply give up and leave, so getting of your branding opportunities here, feedback on how easy it is to navigate Continued on page 39 your website etc from a potential cus- 22 | AUTOTALK MARCH 2016 | www.autotalk.co.nz Mechanical Breakdown Insurance Payment Protection Insurance Loan Equity Insurance Motor Vehicle Insurance “The best protection for your customers” www.autosure.co.nz 0800 267 873 NEWSTALK Stop excuses I “Some people work. Others are driven.” Over the years, I’ve made it my business to help develop dealer businesses with strategies to drive their business forward. Through F&I training that’s practical, proven and results focussed. But as marketers you know the power of ‘word of mouth’, so here is what one Provident Authorised dealer is saying: “Steve Owens’ positive judgment over the years has enabled us to sell finance and insurance products with genuine confidence. With Provident, Steve has a credible, targeted offering to the market, backed by high quality relationships at senior levels. And when it comes right down to it, this business is about relationships. They’ve earned our loyalty. And our business.” – MATTHEW NEWMAN, Dealer Principal/Chief Executive, South Auckland Motors (Ford and Mazda) Drive your business forward with Provident’s focussed F&I training. To find out more visit www.providentinsurance.co.nz MotorCover is marketed exclusively by Provident Insurance Authorised Dealers. 24 | AUTOTALK MARCH 2016 | www.autotalk.co.nz t’s time to step up the performance and stop the excuses. If you’re a business owner/general manager, have you considered how much incremental profit your business is leaking? If you’re a business manager, have you considered the amount of profits you have sitting in the palm of your hand that are slipping through your fingers? Maybe you have, but when market conditions are strong – as they have been for the last 12 months – and you’ve been too busy focussing on buying and selling vehicles, it’s an easy thing to overlook, after all you’re in business to sell cars, right? My guess is that if there was an easier way to make money we’d all be doing it. The fact is, there is an easier way for many dealers to improve their bottom-line and for many business managers to improve profitability, and earnings. The great news is that it doesn’t take a major effort to make a positive change. A disciplined approach to selling finance and insurance products is all that’s required and these five simple things can help you maximise your profit opportunities with every customer: Dealer Principals: Ensure every customer is turned-over to the business manager. Trust them to do the best job for your business and your customer. Business Managers: By Steve Owens Planning & Preparation of Provident 1. Know your stuff. Really Insurance know your products well. Prepare your presentation. Anticipate customer objections and respond sincerely and confidently. Use real life experiences to demonstrate the value of your products. Knowledge is power, power breeds confidence, confidence breeds enthusiasm, and enthusiasm sells. Confidence and enthusiasm in what you’re selling will remove your customer’s uncertainty and help them to say “yes”. Commitment 2. Are you passionate and creative in your work every day? Commit to personall development, to becoming more knowledgeable and confident by regularly reviewing industry and product knowledge. Strive to provide excellent customer service, transparency, honesty and ethical standards in all your dealings with people. Commit to offering 100% of your products to 100% of your customers, 100% of the time. Process/Organisation 3. Take a good look at your office and remove all the clutter. Is your process right? Are you allowing adequate time for each customer to feel they have been dealt with professionally, rather than “processed”. More Effective Use of Downtime 4. In every role there are periods where you aren’t busy. Tidying up loose deals, and prospecting your finance ledger, are two great ways to make the best use of your time. F&I is the most profitable profit centre in a dealership, but it can always be improved. LAUNCHEDTALK Toyota commits to Prius despite hybrid takeover T oyota New Zealand says it is committed to selling the Prius in New Zealand as its flagship hybrid – in spite of mainstream model hybrids eating into its market. Prius sales peaked in New Zealand in 2009 with 422 sold. The next year with the launch of the Camry Hybrid, sales went into decline, falling as low as a claimed 28 – NZTA statistics say 22 – units last year. Toyota NZ general manager of sales Steve Prangnell says its new generation Prius, launched in New Zealand last week, will rebuild sales for the model. “I would like to do 200 (this year),” Prangnell told a small group of media in Palmerston North. “This Prius has a far broader appeal than those before.” But it will have competition from within. It is outsold heavily by the Camry Hybrid and Prius C – and there are more to come. Toyota confirmed last month a Corolla Hybrid is on the cards for launch later this year, completing the mainstream passenger car segments as far as the technology is concerned. SUVs will get the technology next. RAV4 is likely to be first, although the Highlander is also available as an SUV in its source market, the United States. “It is a likely candidate,” Toyota NZ general manager of customer services, Spencer Morris, says of the RAV4. Toyota has some catching up to do to its luxury brother Lexus. Around 5% of its sales are hybrid compared to 50% for the L-brand. But despite the move to mainstream, the technology, and the impact on the car that started it all, the commitment is that the Prius will stay as the hybrid flagship – and Prangnell can’t see that changing. He notes New Zealand is behind overall on hybrid ownership, down to our cheap fuel and lack of incentives. Prius, he says, needs to not just be seen as a ‘green’ option. “We need customers to see this as an economical choice rather than just the environmental option.” The fourth generation Prius is a full redesign from the last generation, other than elements of the drive train, which is largely reengineered. It is the first Toyota under the ‘Toyota New Global Architecture’ (TNGA) programme, which will become the basis of almost all Toyota passenger cars in the long term. While technically only two models are on offer, there is really the choice of three – a GX at $47,490, with a GX Touring ‘package’ for $49,990, and the ZR, which replaces the outgoing Prius i-Tech at $54,990. In ideal conditions, the 2016 Prius can attain a combined fuel economy of 3.4 litres/100 kms compared to the out-going model’s 3.9 litres/100kms. There is also a new feature on board called ECO Score which will rate your driving style and give a driver’s tips to improve fuel economy. The new styling, which will certainly polarise, gives the car the lowest drag of any offered new here – a Cd of 0.24. The 1.8-litre engine has been revised to reduce friction, while the hybrid package has been made smaller and lighter. The engine battery has been moved from the luggage area to the engine bay, and the hybrid batteries have Continued on page 28 Anywhere. Anytime. Your most important dealership information accessible from any desktop, tablet or mobile device. Faster. Easier. Smarter. 0800 623 687 www.motorcentral.co.nz AUTOTALK MARCH 2016 | www.autotalk.co.nz | 25 www.mainstreaminsurance.co.nz | 0800 674 678 LAUNCHEDTALK 26 | AUTOTALK MARCH 2016 | www.autotalk.co.nz High anticipation for new Sportage K ia New Zealand says sales for its new Sportage are off to a brisk start, with pre-launch orders at ‘record highs’. “The 2016 Sportage SUV is the most anticipated new model we have ever launched,” general manager, Kia NZ, Todd McDonald, says. “Our dealers are seeing unprecedented interest from their customers and are placing a record number of orders.” Sportage has long been a key model for the company since it was launched 21-years ago, and the last generation was successful both here and abroad. In New Zealand the company sold as many as they could lay their hands on for a significant period after its launch, and worldwide 1.6 million units have sold since 2010. It is Kia’s top-selling model, and also its entrant in the key medium SUV segment. SUVs made up 34% of the market last year, and medium SUVs 12%. Sportage has a 7% share of the sector. It has been particularly strong as a 2WD petrol model, and when you remove rentals from the market, is second only to the Nissan X-trail. The 2016 model is bigger, more sophisticated and carries more technology, the company says. While the silhouette remains largely the same, it has a Continued on page 27 Discount start aimed at existing customers I n a rare move, the Sportage has been launched with a sales promotion - offering a discounted LX model at $29,990. McDonald, GM Kia NZ, says the promotion is more aimed at existing Sportage owners. “The last Sportage was launched in 2010, so some of the owners have had Todd McDonald a good run out of their vehicles now,” he notes. “They are our target audience at the moment. “I prefer to reward and maintain customer loyalty.” The promotion runs while stocks last - although McDonald says long term availability of the vehicle is not an issue. The last car was so popular, he switched sourcing from Slovakia to maintain supply, but with worldwide expansion of Kia production, that is no longer an issue, and the new model comes from Korea. How many is McDonald expecting to sell? “Given that we are starting in Q2, we are expecting to improve our sales to just over last year’s total of 1100.” LAUNCHEDTALK Continued from page 26 distinctly different new face, the headlamps are positioned higher, sweeping back along the outer edges of the sharply defined bonnet. A lower, wider grille – enlarged for greater engine cooling – adds more volume to the lower half of the front of the Sportage. “Similar to the Sorento and Carnival models launched last year, one of the most important advances is in the styling and quality of the cabin,” says McDonald. Leather is now standard on all but the LX model, following a generous upgrade of equipment across the range. Reversing camera, 7-inch colour touch screen for the infotainment system, leather steering wheels incorporating audio and cruise control functions, LED indicators and rear parking sensors are fitted to all models, along with new 17” to 19” alloy wheels. A new GT Line model sits at the top of the Sportage range to give customers the option of exclusive features, including a D-shaped steering wheel with paddle shifters, distinctive two-tone leather, panoramic sunroof, quad LED fog lights, Bi-Xenon HID headlights and dual exhaust tailpipes. A first for any car in this segment, the GT Line has a new wireless charger for selected smartphone devices, as Kia looks to meet increasing demand for new technologies. Both the GT Line and Limited also have satellite navigation, electronically adjustable driver and front passenger seats, and a smart hands-free power tailgate that activates automatically when the key fob is within proximity of the rear for three seconds or more. The redesigned fully independent suspension and electric power steering, have been further finetuned for this part of the world through the ANZAC handling programme. Already rated Euro NCAP fivestar, the upgrade introduces blind spot detection, lane change assist and rear cross traffic alert on all but the LX. Limited and GT Line models gain autonomous emer- Pricing starts at $35,990 for the LX, topping out at $54,990 for the GT Line diesel. gency braking, lane departure warning and forward collision warning systems, as well as high beam assist. Tokyo car 1605 Morning Midas 1606 Osaka 2 Mar Nagoya 3 Mar Yokohama 4 Mar Auckland 20 Mar Wellington Lyttelton Nelson Port Calls Morning Miracle 1607 Tokyo car 1608 16 Mar 2 Apr 16 Apr 17 Mar 3 Apr 17 Apr 18 Mar 4 Apr 18 Apr 4 Apr 20 Apr 5 May 27 Mar 7 Apr 27 Apr 8 May 1 Apr 6 Apr 1 May 7 May 4 Apr 8 Apr 2 May 9 May PORT TO DOOR SERVICE INCLUDING: MPI Border inspection NZCustomsclearance Odometercertification DeliveryNationwide DigitalPhotographyfor Insurance priorsalesinNZ www.armacup.com AUTOTALK MARCH 2016 | www.autotalk.co.nz | 27 LAUNCHEDTALK TOYOTA COMMITS TO PRIUS DESPITE HYBRID TAKEOVER suite of driver assists. The ZR gains blind-spot monitoring and rear cross alert. Standard across the range is a 7” JBL premium audio system and control screen, with 10-speakers, while two 4.2” screens act as a dash cluster. Standard features on the GX model include 15” alloy wheels – oddly covered by plastic wheel trims – and 195/65 R15 tyres, daytime running lights, an engine immobiliser with wireless remote central locking and ‘smart key’, climate control air conditioning, electric adjustable lumbar support on the driver’s seat, 60:40 split folding rear seats - which can extend the boot capacity from 457 litres to 1507 litres LED front fog lights and rain Dealer Information Notice Dealer Information Notice sensing variable intermittent wipers, and an illuminated enMTA MEMBERSHIP INFORMATION try system which includes the Cost Interests map, step, and main interior of motor vehicle dealers a priority Na ti ona l Subs cri pti on lights $700 Excl GST & Bra nch fee No Yes The ‘touring package’ available on the GX adds a Brand Year Capacity leather steering wheel, satelSince 1917 4000 members Strong & nationally recognised lite navigation and 17” alloy MTA is NZ’s largest dealer representative group: Franchise wheels, with lower profile dealers, used dealers, motorcycle dealers, and truck dealers 215/45 R17 tyres. Market analysis - regular, The ZR includes the Yes No Mediation accurate and detailed ‘touring package’ features Advocacy - pushing the causes and adds leather upholstery, HR Advice No Yes eight-way power adjustfor your industry able driver’s seat, dual-zone Benefits - save money with No MTA stationery Yes driver’s and front passenger key business partners seat heaters, blind spot moniIT Advice Need a mentor Business Range of tor and rear cross traffic alert. No Yes No Yes Managers newsletters Auto Media Group had Continued from page 25 been moved under the rear seat to free up more boot space and help contribute to the lower centre of gravity assisting the improved driving dynamics. Overall packaging puts occupants slightly lower – opening up perceived space. The 1.8-litre Atkinson cycle engine now uses a clever dual cooling system – a separate system generates cabin heat from the engine than the main cooling system, allowing the engine to warm up more quickly, and be more thermally efficient. Toyota claims thermal efficiency from the unit is 40%, the best in production. Black upholstery fabric for GX grades, and natural leather seat facings for ZR, are about the most conventional thing in a cabin that features streaks of white plastic highlights. Wireless charging is also available for Qi compatible devices on the centre console’s dedicated charging pad and for the first time for a Toyota model, the new Prius receives a colour headup display. All models get an extensive safety package, including the Toyota ‘Safety Sense’ package of a pre-crash system, lane departure alert, all-speed dynamic radar cruise control, and automatic high beam, on top of seven airbags and the usual Industry research Specialist training No Yes Business Advice Yes No FURTHER INFORMATION ABOUT MTA Events / get Website Free phone togethers Yes No www.mta.org.nz CONTACT US Tony Everett 04 381 8827 28 | AUTOTALK MARCH 2016 | www.autotalk.co.nz the chance to drive the Prius last week on a lower-North Island run, from Toyota New Zealand headquarters via the Wairarapa to Wellington. While hardly the Prius’s natural environment, the car impressed, and demonstrated it has changed significantly in nature. The interior feels roomier and almost sporty. Some may see that as a negative, as the outgoing I-tech felt slightly more luxurious. I am not sure about the bright-white plastic trim of the centre console, and am glad TNZ did not take the full-white option available in some markets. While previously in a Prius, and most hybrids, you got a distinct sense of where your power was coming from, the updated drivetrain and transmission makes it difficult to tell. Power delivery is more linear, and the petrol engine more muted, only making itself significantly known when the car was being pushed to climb the steep Rimutaka Hill road. Dare we say this hybrid has ‘fun’ handling. Its eagerness to turn in is impressive, and rides incredibly well, while keeping roll in control. Its no sports car, but nor will you be avoiding the twisty section. Was it economical? We pushed the Prius reasonably hard all day and returned it claiming 5-litres for 100 km of driving. Not the claimed use, but in context, not bad. Plug-in plans for Prius T oyota has plans underway to sell plug-in Prius’ in New Zealand, and has a first buyer. Read about it in EVTalk, the first issue out with this magazine. STATSTALK USED VEHICLES Highest import February in a decade U sed import sales continue to grow at an astounding rate, with the February passenger car registrations the highest in a decade. A total of 11,736 units was registered for the month, the biggest tally since February 2005. The result was up 11% on the same time last year. It has also balanced last month’s slow result, putting the market up 4.7% year-onyear to 23,411. Growth was spread around the country, but stand outs were Thames, with registrations up 47% too 436, Rotorua, up 54.9% to 129, Napier, up 36.3% to 248, Masterton, up 45.9% to 70 and Dunedin, up 35.9% to 294 units. Toyota was the most popular brand on 2760, up 14.3% for a 23.5% share of the market. Nissan was second on 2143 vehicles, up 20.5% for USED IMPORT COMMERCIAL MODELS TOYOTA HIACE FEB '16 266 TOYOTA HIACE FEB '15 262 NISSAN CARAVAN 55 NISSAN CARAVAN 61 TOYOTA MAZDA NISSAN NISSAN NISSAN ISUZU MITSUBISHI TOYOTA REGIUS BONGO NV200 VANETTE ATLAS ELF CANTER DYNA 34 28 28 27 24 22 20 20 TOYOTA MAZDA NISSAN TOYOTA TOYOTA NISSAN NISSAN MITSUBISHI DYNA BONGO VANETTE REGIUS TOWNACE NV200 ATLAS CANTER 31 29 28 28 21 15 13 12 MAKE MODEL MAKE MODEL an 18.3% share. Mazda in third rose 11% to 1862 units, followed by Honda on 1255,up 12.1%. Volkswagen, back in seventh, was the most popular Euro-brand on 473 vehicles. The Nissan Tiida con- USED IMPORTS BROUGHT TO YOU BY: tinues to be popular, and just lead the passenger car market on 574 units. The Mazda Axela had a strong month on 566, followed by the Suzuki Swift on 561. Two small hatches were next, the Mazda Demio on 465 and the Honda Fit on 418. The Subaru Legacy was the most popular large car on 329, the Toyota Wish the most popular MPV on 285, and the Volkswagen Golf the most popular Euro on 270. Commercial registrations put in an similarly strong Continued on page 30 USED IMPORT COMMERCIAL MAKES MAKE FEB '16 FEB '15 TOYOTA NISSAN MAZDA ISUZU MITSUBISHI FORD CHEVROLET HINO HOLDEN VOLKSWAGEN OTHER TOTAL 354 159 45 38 33 26 14 14 14 10 38 745 360 132 34 22 24 24 12 13 8 7 45 681 Movement Up 2 Down 2 Up 1 Down 1 Up 1 Up 1 % Change Market Share -1.7 20.5 32.4 72.7 37.5 8.3 16.7 7.7 75.0 42.9 -15.6 9.4 47.5 21.3 6.0 5.1 4.4 3.5 1.9 1.9 1.9 1.3 5.1 100.0 AUTOTALK MARCH 2016 | www.autotalk.co.nz | 29 STATSTALK USED VEHICLES USED IMPORTS Highest import February in a decade Continued from page 29 result, up 9.4% to 745 units. Toyota, again, dominated, but was down 1.7% to 354 units for a 47.5% market share. Nissan, in second, recorded a 159 unit load, up 20.5% for a 21.3% stake. Mazda was next on 45, followed by Isuzu on 38 and Mitsubishi on 33. Nothing compares to a Hiace when it comes to import commercials, and that continued to be the case in February, with 266 units registered. The Nissan Caravan was second on 55, followed by the Toyota AROUND THE COUNTRY DISTRICT WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL FEB'16 233 5749 789 97 436 127 71 248 176 71 279 70 890 188 52 34 10 1558 107 30 394 127 11736 FEB'15 220 5204 735 66 404 82 33 182 165 87 244 48 882 184 47 44 22 1398 10 26 290 109 10572 % CHANGE 5.91 10.47 7.35 46.97 7.92 54.88 115.15 36.26 6.67 -18.39 14.34 45.83 0.91 2.17 10.64 -22.73 -54.55 11.44 970.00 15.38 35.86 16.51 11.01 BROUGHT TO YOU BY: Regius - a Hiace by another name - on 34 units. USED IMPORT PASSENGER MAKES MAKE FEB'16 FEB'15 TOYOTA NISSAN MAZDA HONDA SUZUKI SUBARU VOLKSWAGEN BMW MITSUBISHI AUDI MERCEDES-BENZ FORD VOLVO CHEVROLET LEXUS HYUNDAI MINI HOLDEN JAGUAR LAND ROVER OTHER TOTAL 2760 2143 1862 1255 676 630 473 469 385 211 203 144 89 58 52 41 38 33 28 24 162 11736 2414 1779 1678 1120 684 561 403 475 388 190 200 169 60 81 36 38 42 30 32 37 155 10572 Movement Up 1 Down 1 Up 1 Down 1 Up 1 Down 1 Up 3 Down 2 Up 2 Down 3 % Change 14.3 20.5 11.0 12.1 -1.2 12.3 17.4 -1.3 -0.8 11.1 1.5 -14.8 48.3 -28.4 44.4 7.9 -9.5 10.0 -12.5 -35.1 4.5 11.0 Market Share 23.5 18.3 15.9 10.7 5.8 5.4 4.0 4.0 3.3 1.8 1.7 1.2 0.8 0.5 0.4 0.3 0.3 0.3 0.2 0.2 1.4 100.0 USED IMPORT PASSENGER MODELS MAKE MODEL FEB'16 MAKE MODEL FEB'15 NISSAN MAZDA SUZUKI MAZDA HONDA SUBARU TOYOTA MAZDA VOLKSWAGEN TOYOTA TOYOTA MAZDA BMW MITSUBISHI TOYOTA NISSAN HONDA NISSAN TOYOTA TOYOTA TIIDA AXELA SWIFT DEMIO FIT LEGACY WISH ATENZA GOLF COROLLA VITZ MPV 3 Series OUTLANDER AURIS NOTE ODYSSEY TEANA IST MARKX 574 566 561 465 418 329 285 273 270 239 228 205 189 178 163 162 155 147 138 138 SUZUKI TOYOTA MAZDA MAZDA NISSAN HONDA SUBARU MAZDA VOLKSWAGEN TOYOTA TOYOTA BMW MITSUBISHI MAZDA HONDA TOYOTA NISSAN MAZDA HONDA NISSAN SWIFT COROLLA AXELA DEMIO TIIDA FIT LEGACY ATENZA GOLF WISH VITZ 3 Series OUTLANDER MPV ODYSSEY ESTIMA DUALIS PREMACY ACCORD BLUEBIRD 581 486 474 426 416 378 301 285 260 236 233 186 184 170 169 153 135 134 129 118 • Interest rates from 11.95% • Nichibo and non Nichibo cars financed • Competitive commissions – no retention and no claw back • Low and no deposit to approved purchasers 30 | AUTOTALK MARCH 2016 | www.autotalk.co.nz Tel: (09) 369 5276 www.autofinancedirect.co.nz STATSTALK USED VEHICLES Negative rates positive for Japan trade A move by the Bank of Japan to lower its interest rate – the equivalent of our official cash rate – is set to help the Kiwi import trade. The change is making home and consumer finance far cheaper, and is expected to boost spending on high ticket items. That will hopefully help the car market, which was down 4.3% year-on-year in January – and with every new vehicle sold, there is the potential for another vehicle to enter the market to come to NZ. The Yomiuri Shimbun reports lower interest rate offers are now appearing in the vehicle market, noting the example of the USED IMPORTS BROUGHT TO YOU BY: ing zero percent interest on three-year loans of a specific type for Peugeot 208 compact cars and other vehicles. Germany’s MercedesBenz also reduced the annual interest rate on fiveyear loans to 2.9% interest. It says the company aims to use declining interest rates to cultivate new customers. Retail companies often offer competitive car loans. “Given the sluggish domestic market, it will be good for business if sales increase as a result of reduced interest rates on loans,” one analyst told the newspaper. PSA Peugeot Citroen Group, which will begin a 30-day campaign this week, offer- 18 9 11 25 35 33 158 338 7 27 695 12 17 18 9 28 43 18 130 311 6 64 644 NISSAN TOTAL MITSUBISHI 13 3 OTHER MAZDA VOLKSWAGEN HOLDEN 5 15 TOYOTA HINO 16 15-Jan ISUZU FORD 16-Jan DODGE FIAT CHEVROLET USED IMPORT COMMERCIAL MAKES – THIS YEAR % diff 7 67 8 6 -50 22 -11 -19 83 22 9 17 -58 8 16-Feb 14 4 6 26 14 14 38 45 33 159 354 10 28 745 15-Feb 12 2 9 24 13 8 22 34 24 132 360 7 34 681 % diff 17 100 -33 8 8 75 73 32 38 20 -2 43 -18 9 YTD 16 30 9 19 44 23 25 63 80 66 317 692 17 55 1440 YTD 15 27 5 21 41 31 17 50 77 42 262 671 13 98 1325 %diff 11 80 -10 7 -26 47 26 4 57 21 3 31 -44 9 TOTAL OTHER VW TOYOTA SUZUKI SUBARU PEUGEOT NISSAN MITSUBISHI MERCEDES MAZDA HYUNDAI HONDA HOLDEN FORD DAIHATSU CHEVROLET BMW AUDI USED IMPORT PASSENGER MAKES – THIS YEAR 16-Jan 224 470 61 13 131 48 1324 44 1859 208 404 2075 17 558 679 2794 421 345 11675 15-Jan 220 472 60 20 173 32 1160 59 1992 229 511 2012 24 618 775 2648 420 366 11791 % diff 2 0 2 -35 -24 50 14 -25 -7 -9 -21 3 -29 -10 -12 6 0 -6 -1 16-Feb 211 469 58 8 144 33 1255 41 1862 203 385 2143 16 630 676 2760 473 369 11736 15-Feb 190 475 81 18 169 30 1120 38 1678 200 388 1779 18 561 684 2414 403 326 10572 % diff 11 -1 -28 -56 -15 10 12 8 11 2 -1 20 -11 12 -1 14 17 13 11 YTD 16 435 939 119 21 275 81 2579 85 3721 411 789 2075 33 1188 1355 5554 894 714 23411 YTD 15 410 947 141 38 342 62 2280 97 3670 429 899 3791 42 1179 1459 5062 823 692 22363 %diff 6 -1 -16 -45 -20 31 13 -12 1 -4 -12 -45 -21 1 -7 10 9 3 5 COMPETITIVE FINANCE. PERSONAL SERVICE. Tel: (09) 369 5276 www.autofinancedirect.co.nz AUTOTALK MARCH 2016 | www.autotalk.co.nz | 31 STATSTALK NEW VEHICLES New vehicles set more records T he record-setting run for the new vehicle market is continuing – in spite of expectations of a slower year. There were were 10,313 new vehicle registrations during February eclipsing the previous strongest February way back in 1984, the only other time more than 10,000 registrations for the month of February were recorded. February 2016 registrations were 436 units (4.4%) units ahead of February 2015, made up of 7192 passenger vehicles and 3121 commercial vehicles, which is also the strongest month of February for that sector. “The anticipated slowdown in new vehicle registrations has yet to materialise, as businesses and consumers continued to purchase new vehicles at unprecedented rates in February 2016,” chief executive David Crawford says. Toyota maintained its NEW PASSENGER MAKES MAKE FEB'16 FEB'15 Movement TOYOTA MAZDA HOLDEN FORD NISSAN HYUNDAI MITSUBISHI KIA SUZUKI VOLKSWAGEN HONDA SUBARU BMW MERCEDES-BENZ AUDI SKODA JEEP SSANGYONG FIAT LAND ROVER OTHER TOTAL 915 719 645 604 484 470 413 407 362 309 292 208 193 164 137 102 100 95 66 64 442 7191 906 674 765 514 371 694 472 247 289 372 252 172 193 155 151 75 123 106 61 47 418 7057 Up 2 Down 1 Up 1 Up 3 Down 3 Down 1 Up 3 Down 3 Down 1 Up 1 Down 1 Up 2 Down 1 Down 1 Up 1 Up 3 % Change 1.0 6.7 -15.7 17.5 30.5 -32.3 -12.5 64.8 25.3 -16.9 15.9 20.9 0.0 5.8 -9.3 36.0 -18.7 -10.4 8.2 36.2 5.7 1.9 Market Share 12.7 10.0 9.0 8.4 6.7 6.5 5.7 5.7 5.0 4.3 4.1 2.9 2.7 2.3 1.9 1.4 1.4 1.3 0.9 0.9 6.1 100.0 margin over the rest of the sector with 15% market share (1559 units), followed by Ford with 12% market share (1266 units) and Holden with 9% market share (894 units). Compared to February 2015, registrations of passenger vehicles were up 1.9% in February 2016 (136 units). Toyota remains the market leader for passenger MAKE FEB'16 FEB'15 Movement % Change Market Share FORD TOYOTA MITSUBISHI HOLDEN NISSAN ISUZU MAZDA VOLKSWAGEN LDV SSANGYONG OTHER TOTAL 662 644 288 249 220 215 115 102 82 78 469 3124 43.0 -0.5 37.1 20.9 -17.3 6.4 3.6 -9.7 134.3 8.3 -5.4 10.7 21.2 20.6 9.2 8.0 7.0 6.9 3.7 3.3 2.6 2.5 15.0 100.0 Ph 0800 500 832 or visit www.udc.co.nz 32 | AUTOTALK MARCH 2016 | www.autotalk.co.nz Continued on page 33 NEW COMMERCIAL MAKES Your first choice in automotive lending. UDC Finance Limited lending criteria applies. vehicles with 13% market share (915 units), followed by Mazda with 10% (719 units) and Holden with 9% market share (645 units). Compared to February 2015, registrations of commercial vehicles were strongly up by 10.6% (300 units). Ford was the commercial market leader for the month of February with 463 647 210 206 266 202 111 113 35 72 496 2821 Up 1 Down 1 Up 1 Up 1 Down 2 Up 1 Up 6 Down 1 STATSTALK NEW VEHICLES car segment with 12% share. “Strong net immigration, a healthy tourism sector, and a competitive market are helping to drive new vehicle sales which are already year-to-date 3% (662 units) ahead of this time last year,” says Crawford. Continued from page 32 21% market share (662 units), followed by Toyota also with 21% (644 units) and Mitsubishi third with 9% market share (288 units). The makeup of the fleet continues to evolve and with the recent strong growth of the SUV segment, the MIA now breaks this segment into a number of individual segments. The MIA has also separated the Pick Up/Chas- sis Cab into separate 2×4 and 4×4 segments as well. The SUV medium segment along with the Pick Up/ Chassis Cab MAKE 4×4 segments took FORD 13% each of TOYOTA the market MITSUBISHI in February, HOLDEN followed by NISSAN the small TOYOTA ISUZU passenger NEW AROUND THE COUNTRY DISTRACT FEB'16 FEB'15 WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL 142 3290 510 73 288 83 31 237 50 62 238 50 662 93 68 12 3 750 45 18 261 125 7191 139 3100 508 57 262 112 35 191 159 43 205 57 642 98 61 14 7 964 59 25 217 102 7057 % CHANGE 2.16 6.13 0.39 28.07 9.92 -25.89 -11.43 24.08 -68.55 44.19 16.10 -12.28 3.12 -5.10 11.48 -14.29 -57.14 -22.20 -23.73 -28.00 20.28 22.55 1.90 MAZDA SSANGYONG FORD Three commercials top market; SUVs top passenger Not only was the Ford Ranger again the top selling vehicle in February, com- mercials filled the top three spots overall. The Ranger recorded a 6% overall market share (582 units), followed by the Continued on page 34 NEW COMMERCIAL MODELS MODEL FEB'16 MAKE MODEL FEB'15 RANGER HILUX TRITON COLORADO NAVARA HIACE D-MAX BT-50 ACTYON SPORT TRANSIT 582 444 288 229 220 184 148 115 78 76 TOYOTA FORD NISSAN TOYOTA MITSUBISHI HOLDEN ISUZU MAZDA FORD VOLKSWAGEN HILUX RANGER NAVARA HIACE TRITON COLORADO D-MAX BT-50 TRANSIT AMAROK 427 381 266 208 200 193 113 111 79 73 NEW PASSENGER MODELS MAKE MODEL FEB '16 MAKE MODEL FEB '15 KIA MAZDA TOYOTA TOYOTA SUZUKI HYUNDAI HOLDEN NISSAN HONDA TOYOTA MAZDA MAZDA HYUNDAI TOYOTA MAZDA NISSAN MITSUBISHI HOLDEN SUBARU MITSUBISHI SPORTAGE CX-5 COROLLA RAV4 SWIFT TUCSON COMMODORE QASHQAI JAZZ YARIS CX-3 MAZDA3 SANTA FE HIGHLANDER MAZDA2 X-TRAIL LANCER CAPTIVA OUTBACK LANCER 236 236 231 214 191 169 166 160 157 151 150 146 137 132 129 129 124 116 113 125 TOYOTA MAZDA MAZDA HOLDEN TOYOTA MITSUBISHI HYUNDAI HOLDEN SUZUKI VOLKSWAGEN HONDA MAZDA HYUNDAI TOYOTA HOLDEN NISSAN FORD MITSUBISHI HYUNDAI VOLKSWAGEN COROLLA CX-5 MAZDA3 COMMODORE RAV4 ASX IX35 CAPTIVA SWIFT GOLF JAZZ MAZDA2 SANTA FE YARIS CRUZE QASHQAI TERRITORY OUTLANDER I30 GOLF 302 210 206 204 202 178 174 165 159 159 156 148 143 143 140 128 121 121 115 122 Fixed Rates. Fast approval. AUTOTALK MARCH 2016 | www.autotalk.co.nz | 33 STATSTALK NEW VEHICLES New vehicles set more records Continued from page 33 Toyota Hilux with 4% market share (444 units) and the Mitsubishi Triton with 3% market share (289 units). The Toyota Corolla slipped back to third place in the passenger car market behind the Kia Sportage and Mazda CX-5. Both Sportage and CX-5 were tied on 236 with 231 Toyota Corolla. Kia New Zealand general manager Todd McDonald notes the figure does lux with 1243 registrations (20%) for the Ranger and 744 (12%) for the Hilux. include some dealer take-up of the newly-launched model, but is very pleased with the result – the first time a Kia has lead the market. “It is exciting for the Kia brand.” He is expecting continued sales momentum for the vehicle in coming months, as happened with the previous model at launch in 2010. Year-to-date the Ford Ranger maintains a healthy lead over the Toyota Hi- Car imports up $21 million in January T he value of passenger cars arriving in the country was up 7.2% in January. According to Statistics New Zealand, the cost of all the cars hitting the wharves rose $21 million to a total of $311 million. The total value of goods imported in January 2016 was $3.9 billion, up $261 million or 7.2% from January 2015. The total value of goods exported was $3.9 billion, up $217 million (5.9 percent) from January 2015. ISUZU LDV MAZDA MERCEDES-BENZ MITSUBISHI NISSAN SSANGYONG 38 280 53 214 62 106 56 192 27 231 89 469 117 231 2994 68 43 239 67 176 40 85 31 122 37 254 3 468 139 278 2657 28 -93 -12 17 -21 22 55 25 81 57 -27 32 249 67 215 82 115 41 288 25 % diff 17 39 16-Feb 41 662 47 2 15-Feb 26 463 40 47 40 206 55 202 35 111 35 % diff 58 43 18 -96 -20 21 22 6 134 4 17 YTD 16 111 1361 70 529 120 429 144 221 YTD 15 86 967 83 115 83 445 122 378 75 %diff 29 41 23 -94 -16 19 -2 13 92 102 7 -9 2867 TOTAL HYUNDAI 5 43 OTHER HOLDEN 55 504 VOLKSWAGEN HINO 699 60 TOYOTA GREAT WALL 70 15-Jan MITSUBISHI FUSO FORD 16-Jan FOTON FIAT NEW COMMERCIAL MAKES 0 -16 -17 22 78 644 102 412 3124 210 37 266 72 647 113 216 2821 37 -32 -92 8 0 -10 97 480 52 253 167 1113 219 643 6118 196 66 332 74 520 75 1115 252 494 5478 13 47 45 -30 -51 123 0 -13 13 91 11 30 12 MINI MITSUBISHI PEUGEOT PORSCHE SKODA SSANGYONG SUBARU SUZUKI TOYOTA VOLKSWAGEN VOLVO OTHER TOTAL 376 1774 346 46 183 8899 89 87 116 337 1941 343 36 186 9010 26 1544 -80 -59 475 5 -87 -34 7 12 30 119 12 -9 1 28 -2 -1 64 59 719 164 44 413 484 55 25 102 95 208 362 915 309 53 187 7191 247 47 56 674 155 54 472 371 71 30 75 106 65 36 5 7 6 -19 -13 30 -23 -17 36 412 907 551 0 964 341 578 96 502 2 1280 356 746 109 % diff 83 -7 35 57 0 -19 48 -100 -25 -4 -23 -12 34 16-Feb 21 137 193 17 3 44 604 0 645 292 470 100 407 0 765 252 694 123 -16 16 -32 -19 15-Feb % diff YTD 15 YTD 14 %diff 3 151 193 16 2 44 514 600 -9 0 6 50 0 18 43 274 394 39 7 15 299 342 30 6 187 -8 15 30 17 KIA 745 31 JEEP 25 4 HYUNDAI 4 14 HONDA 22 149 HOLDEN 201 148 NISSAN MERCEDES-BENZ 254 74 137 12 MAZDA 113 101 22 15-Jan LEXUS 79 100 528 16-Jan LAND ROVER 67 469 GREAT WALL 67 64 FORD 494 191 DODGE 368 722 CHRYSLER 78 52 CHERY 144 198 123 BMW 265 155 855 AUDI ALFA ROMEO NEW PASSENGER MAKES 172 289 906 372 46 157 7057 -10 21 25 1 -17 15 19 2 122 104 202 208 462 738 2689 655 99 370 16090 288 626 2847 715 82 343 16067 60 18 -6 -8 21 69 1349 0 1609 633 1048 196 672 219 914 863 242 75 1016 2 2045 608 1440 232 445 170 108 1396 346 118 941 899 172 104 164 193 33 -100 -21 -30 249 -4 -39 -29 -8 4 -27 -16 51 29 746 -38 Your first choice in automotive lending. Ph 0800 500 832 or visit www.udc.co.nz UDC Finance Limited lending criteria applies. 34 | AUTOTALK MARCH 2016 | www.autotalk.co.nz 0 23 8 8 0 STATSTALK SECONDHAND Summer slide for secondhand A long summer historically means stronger secondhand sales, but this year that appears not to be happening. Dealer sales of secondhand cars was up just 3.1% for February, to 16,886, while dealer purchases for the same period were up just 1.5%, despite the rest of the market being up. Manheim’s Graham Green notes the lack of growth is interesting. “The last time NZ had a longer than expected summer the used vehicle market also enjoyed a longer more buoyant selling period,” Green Compliance made simple ...since 1999 explains. “This time around even though the summer has been long and fantastic it has not proved as good in terms of used vehicle sale numbers. “The figures in this report show a slide from December numbers, which given it was expected to remain higher is a surprise,” he says. “”When talking about stock supply I see the demand is still there for selected stock only, not widespread buying.” SECONDHAND REGISTRATIONS − FEBRUARY 2016 SALE TYPE WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE 1115 75 567 118 WES CHR TIM OAM DUN INV TOTAL 1772 161 271 12148 Cars 2016 Public to Trader 225 90 411 237 116 542 100 1163 210 133 42 13 452 Public to Public 1885 14501 3226 568 4335 2057 954 360 1528 954 571 1635 460 3105 950 433 210 82 5549 555 154 1983 1024 42744 Trader to Public 520 14 2115 255 55 679 366 16886 5642 1411 211 879 283 160 633 360 216 772 161 1557 313 188 96 Public to Trader 209 4275 1155 74 608 108 74 382 233 149 638 97 1079 212 110 47 1659 142 23 435 258 11967 Public to Public 1710 13322 3080 469 2049 715 367 1341 948 445 1559 349 2831 949 356 209 98 5273 564 174 1771 986 39565 Trader to Public 481 5449 1351 208 936 255 164 585 366 156 785 156 1421 317 174 79 18 2091 209 59 716 402 16378 Public to Trader 7.7 1.4 -3.5 1.4 -6.7 9.3 21.6 7.6 1.7 -22.1 -15.0 3.1 7.8 -0.9 20.9 -10.6 6.8 13.4 -43.5 3.9 5.0 1.5 Public to Public 10.2 8.9 4.7 21.1 0.4 33.4 -1.9 13.9 0.6 28.3 4.9 31.8 9.7 0.1 21.6 0.5 -16.3 5.2 -1.6 -11.5 12.0 3.9 8.0 Trader to Public 8.1 3.5 4.4 1.4 -6.1 11.0 -2.4 8.2 -1.6 38.5 -1.7 3.2 9.6 -1.3 8.0 21.5 -22.2 1.1 22.0 -6.8 -5.2 -9.0 3.1 Public to Trader 7 121 26 28 1 4 6 3 26 2 42 12 Public to Public 74 612 146 18 96 38 14 86 69 22 69 14 179 64 31 15 Trader to Public 15 108 28 8 18 7 2 9 14 5 20 6 55 13 4 1 Public to Trader 130 37 22 1 10 6 7 32 5 49 10 2 Public to Public 64 506 135 37 118 26 16 64 65 18 73 11 172 61 22 16 3 Trader to Public 10 113 36 7 27 7 2 15 9 7 34 9 51 12 6 2 Public to Trader -6.9 -29.7 27.3 0.0 Public to Public 15.6 20.9 8.1 -6.3 Trader to Public 50.0 -4.4 -22.2 14.3 -33.3 0.0 0.0 Public to Trader 59 511 191 8 87 36 Public to Public 347 1538 482 93 371 138 Trader to Public 109 625 233 42 147 Public to Trader 45 465 149 18 Public to Public 300 1351 414 112 Trader to Public 109 551 203 33 Public to Trader 31.1 9.9 28.2 Public to Public 15.7 13.8 16.4 Trader to Public 0.0 13.4 14.8 Cars 2015 Cars % Change Motorcycles 2016 1 37 3 16 4 339 263 37 7 82 46 1987 37 5 3 12 5 375 29 1 12 3 356 267 21 15 61 39 1810 1 36 6 2 9 7 408 33.3 33.3 -4.8 66.7 -1.5 76.2 -53.3 34.4 17.9 9.8 2.8 -16.7 50.0 33.3 -28.6 -8.1 5 Motorcycles 2015 Motorcycles % change -51.4 -18.6 46.2 -60.0 0.0 -12.5 34.4 6.2 -57.1 -18.8 -60.0 -14.3 20.0 22.2 -5.5 27.3 27.6 4.1 4.9 40.9 -40.0 55.6 -28.6 -41.2 -33.3 7.8 8.3 -33.3 -50.0 33 72 33 22 125 25 93 51 43 11 225 31 1 74 66 1797 74 205 164 100 259 82 353 179 82 48 11 773 107 33 257 198 5894 60 45 114 62 39 136 55 132 71 44 16 4 341 40 12 136 80 2543 69 23 25 59 22 21 100 20 66 52 22 13 193 39 5 55 57 1518 287 102 66 238 175 64 237 72 338 148 73 49 15 707 76 33 241 170 5268 121 40 38 82 53 18 104 35 111 55 36 18 7 324 54 20 114 79 2205 -55.6 26.1 56.5 32.0 22.0 50.0 4.8 25.0 25.0 40.9 -1.9 95.5 -15.4 16.6 -20.5 -80.0 34.5 15.8 18.4 -17.0 29.3 35.3 12.1 -13.9 -6.3 56.3 9.3 13.9 4.4 20.9 12.3 -2.0 -26.7 9.3 40.8 16.5 11.9 27.3 50.0 18.4 39.0 116.7 30.8 57.1 18.9 29.1 22.2 -11.1 -42.9 5.2 -25.9 -40.0 19.3 1.3 15.3 Trucks 2016 Trucks 2015 Trucks % change 21.5 17.0 ✓ Control & manage your Trader Network stock ✓ Paperless change of ownership transactions ✓ Create wholesale vehicle transactions 0.0 6.6 'Take control with Dealer Dashboard' ✓ Total vehicle securities management ✓ Mobile optimised services AUTOTALK MARCH 2016 | www.autotalk.co.nz | 35 STATSTALK BIKES Bikes continue slow start A fter a busy 2015, new bike registrations are struggling to get underway in 2016. The market for new road bikes was down 4.1% in February, to 731 units from 762 this time last year. Suzuki remains market leader, but fell 11.5% to 139 units from 157 a year ago for a 19% share of the fleet. Yamaha was second on 71 units, up 31.5% for a 9.7% share, Honda was next on 67, down 32.2%, followed in a tie for fourth by Harley Davidson, down 2.2% and Triumph, up 18.9% on 44 registrations. A scooter led this month, the Suzuki Zip 50 ZT on 25 units, while in second place, Yamaha sold 19 units of its LAMS YZF R3AF model. In third was the Suzuki GW250 Inazuma, followed by the TNT Roma ZT and Suzuki GN125H. most popular import brand on 46 units, down 33.3% for a 24% stake. Triumph was second on 23, with BMW third on 21 bikes. Imports dive Imports had a poor result compared to the new market – down 7.7% year-on-year. Harley Davidson was the NEW BIKE MODELS MAKE PIAGGIO YAMAHA SUZUKI TNT MOTOR SUZUKI SUZUKI SUZUKI FACTORY BUILT TRIUMPH APRILIA HARLEY DAVIDSON VEHICLE MODEL ZIP 50 2T YZF R3AF GW250 INAZUMA LAM ROMA 2T GN125H UZ50 GSX-R750 LINTEX VIVA SPEEDMASTER A3 ML6 SR MOTARD 50 STREET 16 STREET 500 FEB 25 19 17 17 15 14 12 10 10 9 9 USED BIKE MAKES MAKE FEB-16 FEB-15 % Change HARLEY DAVIDSON TRIUMPH BMW DUCATI YAMAHA HONDA SUZUKI KAWASAKI APRILIA VESPA VICTORY OTHER TOTAL 46 23 21 16 16 15 8 7 6 6 6 22 192 69 21 16 17 17 19 10 10 4 1 2 22 208 -33.3 9.5 31.3 -5.9 -5.9 -21.1 -20.0 -30.0 50.0 500.0 200.0 0.0 -7.7 % of Market 24.0 12.0 10.9 8.3 8.3 7.8 4.2 3.6 3.1 3.1 3.1 11.5 100.0 NEW BIKE MAKES MAKE FEB16 YTD 16 FEB-15 SUZUKI YAMAHA HONDA HARLEY DAVIDSON TRIUMPH KAWASAKI PIAGGIO APRILIA KTM FACTORY BUILT VESPA ZNEN TNT MOTOR PGO INDIAN DUCATI SCOMADI KYMCO PEUGEOT TGB Other TOTAL 139 71 67 44 44 43 34 28 28 26 19 19 17 16 14 11 11 10 10 10 70 731 290 112 148 92 87 87 51 52 56 63 41 30 41 22 24 30 17 23 17 11 183 1477 % Market Change Share % 157 54 99 45 37 30 11 34 25 19 14 -11.5 31.5 -32.3 -2.2 18.9 43.3 209.1 -17.6 12.0 36.8 35.7 24 13 10 12 -29.2 23.1 40.0 -8.3 16 9 12 141 762 -37.5 11.1 -16.7 -50.4 -4.1 19.0 9.7 9.2 6.0 6.0 5.9 4.7 3.8 3.8 3.6 2.6 2.6 2.3 2.2 1.9 1.5 1.5 1.4 1.4 1.4 9.6 100.0 All the Auto Industry HOT NEWS every day as it happens on www.autotalk.co.nz Subscribe online for FREE twice weekly updates direct to your email 36 | AUTOTALK MARCH 2016 | www.autotalk.co.nz STATSTALK TRUCKS Isuzu Trucks maintains leadership in declining market I suzu Trucks has maintained its leadership in the declining new truck and bus market, which saw a more than 14% year-on-year decline in February 2016. There were 303 new trucks and buses registered in February 2016 as opposed to 354 new units in the previous corresponding period. Isuzu Trucks saw a near 25% decline year-on-year from 89 registrations in February 2015 to 67 in February 2016. Hino saw a 20% decline from 40 registrations in February 2015 to 32, and Mitsubishi Fuso saw a 32% decline from 37 registrations. Only four heavy truck and bus brands saw their February 2016 registration tallies improve. Mercedes-Benz saw its registrations increase from 11 in February 2015 to 22 in February 2016, and Kenworth grew from 10 registrations in February 2015 to 15 last month. DAF also saw an improvement from 15 registrations in February 2015 to 21 in the same period this year, as did Iveco trucks, up from 8 units in FebruMike Davidson ary 2015 to 12 in February 2016. Year-to-date the registration numbers of new truck and buses has dropped from 732 units in February 2015 to 670 units in February 2016. Isuzu sits at the number NEW TRUCK MAKES MAKE FEB16 FEB15 % % of Change Market YTD 16 YTD 15 ISUZU HINO MITSUBISHI FUSO MERCEDES-BENZ DAF UD TRUCKS VOLVO KENWORTH SCANIA IVECO MAN FIAT OTHER TOTAL 67 32 25 22 21 20 19 15 13 12 11 10 36 303 89 40 37 11 15 22 22 10 23 8 17 10 50 354 -24.7 -20.0 -32.4 100.0 40.0 -9.1 -13.6 50.0 -43.5 50.0 -35.3 0.0 -28.0 -14.4 115 70 52 46 47 38 36 44 28 22 25 40 107 670 154 83 74 31 30 45 36 36 38 17 36 39 113 732 22.1 10.6 8.3 7.3 6.9 6.6 6.3 5.0 4.3 4.0 3.6 3.3 11.9 100.0 one spot in the market year to date on 115 registrations as opposed to 154 in the previous period, followed by Hino on 70 rather than 83 at the same time last year and Fuso sits on 52 as opposed to 74 in the previous corresponding period. However Mercedes-Benz has improved its February year to date tally from 31 in 2015 to 46 registrations this year, as has DAF from 30 registrations to 47, and Kenworth from 36 to 44. These increases may be a reflection of new heavy trucks ordered last year finally coming through the over burdened body builder pipeline and going into service. Vehicle Inspection NZ A slow start for Mitsubishi Fuso After an impressive finish to 2015 with 122 registrations in December, Mitsubishi Fuso has seen a very slow start to 2016, with 36 registrations in January for trucks and buses, and 25 registrations in February. Fuso sales and marketing manager Mike Davidson says the big finish to last year, an 8% rise in the rate of exchange between the Kiwi dollar and the Japanese Yen, and businesses reflecting upon and taking stock of their situation are the three factors driving the slow start to 2016. “Certainly dealers are reporting decreased inquiry levels, but we’ll wait and see how the market pans out in March and April,” says Davidson. Continued on page 42 USED TRUCKS MAKES MAKE FEB16 FEB15 % % of YTD Change Market 16 YTD 15 ISUZU MITSUBISHI TOYOTA NISSAN HINO IVECO MAZDA VOLKSWAGEN FACTORY BUILT OTHER TOTAL 27 26 24 17 14 5 4 4 2 10 133 16 12 45 13 13 2 2 68.8 116.7 -46.7 30.8 7.7 150.0 100.0 39 23 64 26 31 2 5 1 15 119 100.0 -33.3 11.8 20.3 19.5 18.0 12.8 10.5 3.8 3.0 3.0 1.5 7.5 100.0 50 41 52 32 23 6 5 4 3 34 250 1 33 224 Vehicle Inspection Specialists Vehicle Inspection NZ • Warrant of Fitness • Certificate of Fitness • Certification • Road User Charges • Registration & Relicencing • Drivers Licences • Vehicle Information • Vehicle Appraisal & Change of Ownership • Exhaust Emission Testing TALK TO THE TEAM YOU CAN TRUST: 0800 GO VINZ (0800 468 469) / email: [email protected] / www.vinz.co.nz AUTOTALK MARCH 2016 | www.autotalk.co.nz | 37 TRIBUNALTALK Dispute over camera quality Barneto v North Western Toyota I n this case the purchaser is attempting to reject a brand new vehicle over what they suggest is poor image quality from a reversing camera, in some conditions. In July 2013, the purchaser paid $32,095 for a new Toyota Corolla GLX hatch from the trader. Soon after, the purchaser says he first noticed colour flashes from the screen in the vehicle’s dash when reversing the vehicle out of his driveway - when the reversing camera was activated. The purchaser sent an email to Toyota New Zealand complaining about the trader’s failure to provide a Toyota key chain and a pot of touch up paint with the new vehicle, then sent another email to Toyota complaining that the vehicle’s reversing camera showed a grainy image, which was noticeable in the early morning and evening. In response to this, the trader’s assistant service manager took another similar vehicle of the same colour to the purchaser’s home so that the purchaser could compare its reversing camera’s performance with his vehicle. The vehicle was also inspected and the results of his inspec- winter it provides an unsatisfactory image. The trader gave evidence that it had investigated the purchaser’s claim and was satisfied that there was nothing wrong with the reversing camera fitted to tion sent to Toyota’s technical department. The purchaser produced to the Tribunal colour photographs and three video clips he took with his iPhone camera, to demonstrate what he claimed was the grainy picture and the colour distortion he says the reversing camera provides during the winter at dawn and dusk. He says the reversing camera performs satisfactorily during normal daylight hours and in the summer, but during the the purchaser’s vehicle. The trader told the Tribunal that the trader was not aware of any other customers experiencing dissatisfaction with the reversing camera fitted in any of the Toyota models it sells. A representative of Toyota New Zealand indicated the same, and it has received no software updates or product changes from Toyota Japan. The Tribunal noted the purchaser did not claim the reversing camera is faulty Poor paint leads to problems I n August 2015, the purchaser paid $10,484 for a 2006 Nissan Murano - which she now wishes to reject due to what she claims, is a poor paint job made on the car prior to sale. The trader’s general manager told the Tribunal that the vehicle was offered to the trader for sale by a Japanese exporter, with what was described as, “a shallow dent with a scratch on the left rear door.” The vehicle was not flagged as imported damaged, because the panel damage to the off-side doors was minor. Following shipment to New Zealand and compliance inspection, the trader had its contractor repair and paint the left front and left rear doors of the vehicle for a total cost of $200. The purchaser says she noticed what she thought 38 | AUTOTALK MARCH 2016 | www.autotalk.co.nz and the inspection of it, and comparative test done by the trader, show that the reversing camera in the vehicle is no different from that in other 2015 Toyota Corolla cars. Rather his claim is that under certain poor light conditions in winter, and at night, the reversing camera’s image is unsatisfactory. The Tribunal, after watching three video clips produced as evidence by the purchaser and examining the colour photographs he produced, is unable to find anything which a reasonable consumer would regard as faulty or unacceptable in the quality of the images. It accepted the purchaser’s belief that the reversing camera is unsatisfactory is sincerely held, but does not think that a reasonable consumer would find anything unacceptable about the quality of the images produced by the reversing camera in the vehicle. It declined the rejection. Alegre v 2 Cheap Cars Limited was chalk on the rubber window seals which, following examination by the assessor, is heavy overspray caused by a failure of the painter to properly mask the windows when the doors were repainted. The purchaser also says she and her partner had an adhesive decal affixed to the vehicle on September 15, 2015. During the course of installation of the decal on the passenger side of the vehicle the installer says in a letter submitted by the purchaser that he was not happy with a small piece of the graphic and deemed that it would have to be applied again, and he proceeded to peel it off. Whilst peeling the piece off he states that he noticed that there was paint sticking to the small piece of the decal, and not sticking to the vehicle revealing the Continued on page 39 TRIBUNALTALK Poor paint leads to problems Continued from page 38 original paint underneath. The purchaser contacted the trader on October 16, and on the following day she says she was contacted by the trader’s workshop manager who told her that the vehicle had been damaged during its delivery to New Zealand and had to have a paint job done on the doors. The purchaser requested to have the paint job done properly. The purchaser claims the workshop manager agreed and stated that the car painter the trader used had not done a good job. He requested that the purchaser return the vehicle to the trader. On November 20, the pur- chaser returned the vehicle to the trader who provided her with a loan car for ten days while it inspected the vehicle. On December 1, she says the trader advised the purchaser that it would not repair the paint work on the vehicle because ‘the purchaser had bought a used Japanese import’. The workshop manager confirmed this advice in an email sent to the purchaser, a copy of which she produced which states that the trader would not be paying for repainting the vehicle or for the signage. The email required the purchaser to collect the vehicle to avoid storage fees. The purchaser sent the trader an email rejecting the vehicle on December 9 for its failure to repaint the off-side doors as requested. The trader’s general manager says he believes that the paint had peeled from under the sign written part of the door but concedes that the paint job could have been done better. The assessor and the parties made an inspection of the vehicle’s paintwork in strong sunlight outside the hearing room following the conclusion of the hearing. The assessor advised that he considers the paint job done on the front left and rear left doors, to be of a particularly poor quality. He says that the window A customer’s point of view Continued from page 22 don’t forget when staff are off the yard this can also be a branding opportunity. Well placed branded attire, whether it is more casual or full on business, can also create sales opportunities. We know of cases where staff when out shopping at lunch time or on the way home of an evening have got leads because potential customers have noticed the branding and stated they were looking for a new car. The buying public will have widely varying expectations but you can almost certainly guarantee that well presented staff are more likely to create opportunities, and an initial favourable first impression, that is so important if your business is to sell a car. Service department If your business has a vehicle service department, do you introduce all your clients that have purchased a vehicle to a service advisor or service manager, and get them logged into your system so that you get them back for their vehicle servicing and WOF checks and reminders? Salespeople and business managers Walk the dealership regularly and talk to technicians, service advisors, and parts department managers. Find out what is going wrong with vehicles, what it is costing clients to repair their cars and buy parts. All that information is gold when it comes to recommending why your car buying clients should have mechanical breakdown insurance. These are just a sample of the many things that you should be looking at on a regular basis. If you want to have a successful and profitable F & I department, you need to plan and put into effect regular reviews of your business, processes, website and all the other things that make up a successful F & I operation. If you would like some help and ideasa contact you local Autosure account manager by visiting www. autosure.co.nz and click on ‘Our People’ for details. mouldings have not been removed before painting, and the paint underneath them is lifting. The paint is also lifting on both left hand door inner edges. The left rear door stone guard has been sprayed over, which is poor trade practice and will cause problems in the very near future. The Tribunal noted the poor paint work on the off-side doors were a result of the work done by the trader’s painting contractor, and the trader’s decision to have a cheap and clearly poor quality paint job done on the doors. It upheld the rejection and ordered the vehicle be collected. We deliver people that ARE NOT LOOKING FOR JOBS... When you are looking to recruit new senior staff you want the very best person available. The very best are probably not looking to change jobs and that’s where AutoTalk comes in. We reach pretty much near all the people in senior management in the auto sales industry – the people that you need to recruit. That’s why when Seek or Trade Me won’t cut it, more people advertise their senior recruitment with AutoTalk. Talk to us today – and get the best deal on staff recruitment DALE STEVENSON [email protected] 021 446 214 DEBORAH BAXTER [email protected] 027 530 5016 AUTOTALK MARCH 2016 | www.autotalk.co.nz | 39 Max Pichon or AutoTalk’s seni list na ur jo ie ss Au oks Max Pichon lo r ajo m e th at back past stories in the r month on ou Austrailian ite AutoTalk webs m.au – autotalk.co February 4 ASIC slaps BMW Finance with $391,000 penalty BMW Finance will have to pay pay a $391,000 penalty for breaching responsible lending and repossession laws, after the Australian Securities and Investment Commission (ASIC) found the car finance provider had breached key consumer laws. BMW Finance’s failure to comply with the requirements of the law, resulted in customers entering into unsuitable loans, and losing the benefit of important protections to reduce the impact of financial hardship. Three WA men convicted of odometer tampering Three men who systematically changed odometer readings on numerous vehicles, and then sold those vehicles to unsuspecting members of the public, have been prosecuted by Western Australia’s watchdog, Consumer Protection. On January 29, 2016 – the three men – who cannot be named for legal reasons – were fined a total of $30,000 by the Armadale Magistrates Court. February 8 Dealer profitability rises to 2.5% in 2015 Dealer profitability, as measured by net profit as a percentage of sales (NP%S), was 2.5% for the average Australian dealer in December 2015. The AUSSIE TALK DIARY result was the highest of the months in the last quarter of the calendar year, according to the latest Deloitte dealer profitability report. The YTD NP%S for the average dealer has gone up by 0.4% in 2015 as compared to 2014, and now measures 2.3%. February 10 Australia to open door to ‘new’ parallel imports; Confirms no to used The Australian Government is opening the door wider to imports, with changes to the Motor Vehicle Standards Act being announced today. From 2018 consumers will be able to personally import a new car or motor cycle from another country with comparable standards to Australia’s, up to once every two years, if specified conditions are met. It is also streamlining current rules for specialist imports. But as previously indicated, it is ruling out large-scale importing as seen in the New Zealand market. February 10 carsales reports 10% half yearly profit growth International acquisitions, coupled with dealer and private seller revenue growth, have helped carsales achieve 10% net profit growth. Carsales delivered a net profit of $51.3 million for the six months ended December 31, 2015. carsales.com delivered 40 | AUTOTALK MARCH 2016 | www.autotalk.co.nz FOLLOW AUSSIETALK Australian dealer news at www.autotalk.com.au strong earnings performance with reported net profit after tax (NPAT), after noncontrolling interests (NCI), up 10% year on year. The online car seller also reported total revenue of $167.3 million, up 11% compared to the same period in FY15. February 16 Holden appoints head of customer experience Peter Jamieson, has been appointed to the position of executive director of customer experience at GM Holden, effective February 29.. This move also sees ‘customer experience’ become a standalone function of the Holden business. Jamieson – who is experienced in customer, commercial and financial management – will join the Holden senior leadership team and report directly to Holden chairman and managing director, Mark Bernhard. February 17 Four Sydney dealerships involved in odometer tampering scam Some 100 cars have been discovered to have had their odometers tampered with, at four different car dealerships, thanks to a joint operation between NSW Fair Trading and NSW Police. Operation Paris has resulted in action against four motor dealers, and three motor vehicle repairers, associated with the four dealerships, following a two-year investigation by Fair Trading’s Compliance and Enforcement division. All actions captured by the search warrants involved alleged winding back of odometers in used cars imported from Japan. February 19 AHG buys Mitsubishi dealership in Melbourne Automotive Holdings Group (AHG) has reached an agreement to acquire the Knox Mitsubishi dealership, located at Wantirna South in Melbourne’s eastern suburbs. The acquisition involves a total consideration of approximately $5.4 million for goodwill and assets. AHG managing director Bronte Howson describes the acquisition as further opportunity to grow the group’s portfolio of brands in Victoria. February 23 Unlicensed car dealer pays price for selling 21 cars An unlicensed vehicle dealer has been fined $7500 and ordered to pay costs of $1096 after pleading guilty in the Perth Magistrates Court. Glyn David Robinson of Cloverdale had purchased 42 vehicles and sold 21 of them between March 2014 and September 2015 without a licence, in breach of the Motor Vehicle Dealers Act. Robinson sold the vehicles by placing 38 advertisements on the Gumtree website. Dealers offer discounts to clear overstocked yards A number of discounts have emerged on some of Australia’s most popular new cars — as the industry struggles to clear vehicles reported as sold in December. In the race to post record sales last year, some dealerships took on more than their fair share of cars, to take advantage of generous bonuses offered by the manufacturers. But many dealers are so overstocked they can’t digest all the cars, and are now desperate to clear their lots. Robert Barry DIESELTALK itor DIESELtalk ed rry Ba rt be Ro onth looks at the m gone by on .nz dieseltalk.co r the -daily news fo rt and heavy transpo ctors. equipment se DIARY freight traffic to the Waitemata Port in Auckland. “We are committed to increasing our use of rail and creating a more sustainable transport system to help generate infrastructure savings at a national level,” says POAL chief executive Tony Gibson. February 12 February 2 Fletcher Building buying Higgins Group for $315 million Fletcher Building Limited is acquiring the New Zealand road construction business, Higgins Group Holdings Limited and other related assets, together with Higgins’ Fiji contracting company, for NZ$315 million. The companies have been partners in road construction projects for more than 25 years. Subject to consent from the Overseas Investment Office and the Commerce Commission, Fletcher Building is anticipating the deal will be concluding on June 30, 2016. February 4 EROAD drives greater safety and efficiency with FleetPartners Promoting safe driving within businesses’ and delivering a system of enhanced fleet and asset management, is the result of a new partnership between commercial fleet operator FleetPartners, and NZTA approved technology provider EROAD. When the Health and Safety at Work Act comes into effect on April 4, 2016, the two partners say it is critical that businesses/entities have the best tools in place to ensure efficient compliance with the new regulations. “Managing and controlling vehicle maintenance and repairs, and providing fleet vehicles which are always well maintained and safe, should be a given,” says FleetPartners marketing manager Gail McNamara. NZTA engineer hopes wife’s accident will prevent more happening New Zealand Transport Agency senior engineer – heavy vehicles Bill Hyslop hopes the outcome learnt from a freak trailer accident in Taupo, involving his wife Marie while on a family holiday, will prevent further incidents. Hyslop commented to AutoMedia Group today that the irony of the accident wasn’t lost on him, as he often has conversations about the safety of light trailers with his NZTA colleagues. “Something good should come out of this. The Police are still investigating the incident, and we have no results as yet, but I want to know what happened so we can prevent it from happening again,” says Hyslop. February 11 Increased rail use forms Port supply chain strategy Ports of Auckland (POAL) says increased rail use will become a bigger part of its supply chain strategy, hence it is developing a third new freight hub in the Waikato next to the main trunk railway line. It is targeting an increased rail use from 13% to 30% of NZTA considers phasing out tow-eye coupling systems Transport firms are reminded by the Transport Agency to check their tow-eye coupling systems thoroughly, following recent incidents where the trailer has separated from the vehicle after the bolt-in tow eye system failed. Given the significant safety risk posed by tow-eye coupling systems failing of late, the NZTA says it is investigating the use of these and may consider phasing them out. According to NZTA, if the tow-eye has not been correctly installed or maintained, it can become worn, causing it to pull out of the drawbar. February 19 Local demand spawns second Hamilton auction Industrial auctioneer Ritchie Bros says high demand for trucks and equipment in New Zealand has seen the company return to Mystery Creek for its second annual sale on Thursday, February 25 at 9 am. Ritchie Bros acting corporate communications manager Vicki Cunningham says hundreds of items are for sale on auction day, with no minimum bids or reserve prices. The auction catalogue, sourced from multiple New Zealand owners, includes excavators, wheel loaders, articulated dump trucks, dozers, compactors, rollers and more. February 22 Mainfreight opening its largest global facility in Australia Mainfreight will be opening its largest global facility yet when operations commence at the new 36,000 square metre development in Epping, a suburb of Melbourne, Australia. Mainfreight will now operate 27 sites across six states/ territories in Australia, when the Epping site becomes operational in March. It joins purpose-built sites in Sydney, Perth, Adelaide and Brisbane as a state-of-the-art transport and logistics centre, catering to the individual needs of many supply chain customers, according to Mainfreight managing director Don Braid. Free national delivery offered by truck and equipment dealer Nelson-based New Zealand Commercial and Industrial is offering free freight New Zealand wide on all of its prepared assets until March 31, 2016, but terms and conditions apply. The company says it has a yard full of tippers, trucks, cranes, trucks with tail lift, chiller trucks, and to complement that, a range of excavators up to 8-tonne in capacity. Trade-ins and unprepared assets are available for sale on TradeM, and New Zealand Commercial and Industrial says it is a great way for buyers to grab a good deal. Revenue falls for Ports of Auckland The boss of Ports of Auckland says inspite of revenue for the six months to the end of December 2015 being down – the result overall is ‘solid’. Net profit was up 9.5% to $31.6% on revenue of $106.1 million. Breakbulk, including cars, was down 2.8% to 2.995 million tonnes, while container volume was down 3.3% to 474,613. AUTOTALK MARCH 2016 | www.autotalk.co.nz | 41 NEWSTALK There is money in S**tboxes T he Shitbox Rally, as featured in the last AutoTalk magazine, has come to an end, with an astounding $380,000 raised for charity. The cars went up for auction yesterday at Manheim New Zealand’s Manukau base, with all 62 selling to a mix of dealers, the public and salvage. “We sold everything yesterday, and the prices were reasonably strong,” general manager Andrew Sherliker says, noting just one of the cars Manheim sourced failed to make it back to Auckland – catastrophic mechanical failure meaning it is being sold for salvage out of Gisbourne. The highest achieving car was the ‘Booze Bus’ Holden Commodore, which went to a member of the public for $1325, while the lowest price was for the ‘Squidhunters’ Nissan Bluebird, of $275. Sherliker says the exercise has been well worthwhile for the company, and they will be involved when the rally returns next year for an event based out of Christchurch. Proceeds from the event are split between the Cancer Council New South Wales and the Cancer Council NZ. Isuzu Trucks maintains leadership in declining market Continued from page 37 “We don’t think the slow start to 2016 is a sign of dire straits just yet; we feel that customers are taking stock of their situation and re-evaluating before committing to capital expenditure,” he says. “We’ve come off the back of two incredible years in the truck market where there was the perfect storm of a favourable exchange rate reflecting in excellent prices and value for money, as well as high demand for new equipment, and high business confidence,” says Davidson. Davidson says the dollars 8% decrease against the yen year on year is significant, and this means the newly landed stock is more expensive than the previous stock available to the market, which is resulting in 42 | AUTOTALK MARCH 2016 | www.autotalk.co.nz some buyer reluctance. Used imported trucks bounce back Registrations of used imported trucks in February 2016 saw an almost 12% lift year on year with 133 units registered, as opposed to 119 in the previous corresponding period. Year-to-date used imported truck registrations have grown from 224 to 250. In the month of February 2016, Isuzu saw 27 used imported registrations followed by Mitsubishi on 26, Toyota on 24, Nissan on 17, and Hino on 14. Year-to-date Toyota leads the used imported registrations with 52 units, followed by Isuzu on 50, Mitsubishi on 41, Nissan on 32, and Hino with 23. Are you using AdBlue ® Copies are never as good as the original... For use with SCR Engines Insist on Genuine VDA Approved AdBlue®. Marketed by: Chemsafe Manufacturing PO Box 231, Tuakau 2342. Ph 09 238 5959. 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