21 October 2010 The voice of the auto industry IMVIA seeks ...

IMVIA seeks deferral of emission ruleThe ImporTed Motor Vehicle Industry Association (IMVIA) has prepared and submitted an unsolicted submission to Transport Minister Stephen Joyce on the final phase of the exhaust emissions rule.

The submission says that the implementation of the final phase will be the most severe yet, and will result in job losses across the industry. It seeks that the rule be deferred for two years.

The appendix of the submission also contains correspondence from National MPs Maurice Williamson and Eric Roy, at a time when National were in Opposition,

where they express support for deferment.

The IMVIA’s chief executive David Vinsen says that deferring the implementation of the next phase of the Rule is the pragmatic solution to the problems outlined.

“The Government is well aware of the issues surrounding the exhaust emissions rule. As you can see from Eric Roy’s comments when he was in Opposition, they understand well the futility of the rule.”

Vinsen says that rather than focussing on the technical issue of how best to improve the fleet, the submission looks at the impact on businesses, and the jobs which

would be lost. “What we want to do is point out to them the cost of failing to change the rule, that the costs are likely to be both human and financial. Everyone understands that business as usual would achieve just the same sort of goals, but it’s pride and hubris and inertia that’s meant the rule hasn’t been deferred.”

The IMVIA’s submission estimates that based on imports to date, 93,000 used vehicles will be imported this year, rising to between 95,000 and 110,000 units in 2011. It further estimates that implementation of the rule will see imports drop to between

45,000 and 60,000 units in the 2012 calendar year.

This will impact heavily on the industry says the submission, as have past phases of the rule. “Businesses involved in the used

The voice of the auto industry 21 October 2010

continued on page 8

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In a letter sent to an IMVIA member, dated July 24, 2007 the National MP for Invercargill Eric Roy described the emissions rule (then at a draft stage) as “another example of poorly thought out Labour policy.” In the letter Roy also calls the rule “ridiculous”, and recognises that it will have a major impact on business as well as causing motorists to retain

vehicles for longer. That same month Roy put

out a press release titled “More Government Policy creating more pollution and more costs.” In the release Roy said the Japanese emission reduction example should be followed, with a staged introduction to reduce exhaust emissions. “It’s not feasible to do this in one fell swoop, and is yet another

example of poor policy being foisted on the people of New Zealand.”

And on October 24, 2007 the National MP for Pakuranga Maurice Williamson wrote an email that he sent to all National MPs, with the subject line “National agrees with the IMVDA view on Emission Standards.”

In the email, described as A brief note on where National stands on Vehicle Exhaust Emissions Rule, Williamson says unequivocally that National agrees with the then-IMVDA’s position, which was to call

for a delay in the implementation date and a slightly slower rate of progression.

Williamson says the issue “was canvassed extensively at Caucus,” and that National agrees with the IMVDA: “if the new Rule is implemented - cars will become more expensive in New Zealand - consumers will hold on to older model cars for longer - and the perverse impact will be for a drop in the emissions standards of our vehicle fleet not an improvement.”

What National said in '07

David Vinsen

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Not a decision to be taken lightlyWITh many used import dealers around the country struggling against creeping overheads, and with sales remaining sluggish, the issue of staff retention is likely to be in focus. It’s unlikely that dealers, should it become necessary, would make the decision to lay off staff lightly. In fact, it’s probably fair to say that most would do everything in their power to keep on their employees.

That said, used import dealers around the country will be hoping that Transport Minister Stephen Joyce will deliberate with equal gravity as he considers whether to defer implementing the final phase of the exhaust emission rule.

It’s worth looking at arguments for and against.

In favour of not deferring the rule is the argument that businesses have already made plans that factor in the implementation of the rule. However with imports serving an important and stand-alone area in the market, it’s hard to see which businesses have been doing planning, unless purveyors of 12-16 year old second-hand cars figure high in National’s scheme of things.

Another argument in favour is that the legislation is already in place. But that would be a little weak coming from a National Government talking about a piece of legislation enacted by Labour, and one which has been described by National MP Eric Roy as “another example of poorly thought out Labour policy.” But perhaps we should leave it to the Electoral Finance Act to have the last word.

The third argument, that implementing the rule will reduce emissions, didn’t seem to hold much water in 2007 when the matter was “canvassed extensively at Caucus”, nor when

Maurice Williams subsequently informed party MPs and National Secretaries that the party agreed with the IMVIA’s view, that the perverse impact of the rule would be for a drop in the emissions standards of our vehicle fleet not an improvement.

In favour of delaying the rule are the attestations from many of the larger businesses in the used import industry that it will lead to job losses, while for some businesses the drastic drop in volume could lead to outright closure.

With job losses come skill losses, and it won’t be surprising to see skilled workers trained in New Zealand, at the expense of business and tax-payers, leaving for Australia. This will also lead to additional future costs when trained staff aren’t available for rehiring.

Equally important, but perhaps less visible, are the hundreds of dealerships around the country who depend on the flow of imports for a livelihood, just as countless other trades in New Zealand depend on the flow of imported goods deemed desirable by the New Zealand public.

In an economic environment where the recovery is slow, and where there is little overall elasticity, it seems counter-intuitive that the Government would allow additional stresses to be placed on an already beleaguered industry.

If the rule goes ahead as planned the world won’t stop spinning, and most businesses will continue to operate. But in the absence of a strong reason in favour of allowing the rule to come into effect, it seems irresponsible for the Government to allow it to continue.

Stian Overdahl Editor

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Consumer complaint leads to prosecution

porIrua dealershIp Sunrise Motor Group and its managing director Surya Kumar have been fined in the Wellington District Court after pleading guilty to multiple charges of breaching the Fair Trading Act. For failing to display CINs, and for not disclosing that vehicles had been imported as damaged, Kumar was fined a total of $9,600 on six charges and Sunrise Motor Group a total of $19,200 on twelve charges.

Greg Allan, Commerce Commission Manager Enforcement says the Commission received a complaint from a consumer who alleged that Sunrise Motor Group had not disclosed a CIN when advertising a motor vehicle via Trade Me, and that Kumar and Sunrise may have misled him in relation to a vehicle not being imported damaged.

The Commission’s investigation into this original

complaint also uncovered other CIN-related issues. In November and December 2009 Sunrise Motor Group advertised 18 motor vehicles on Trade Me without displaying or providing access to Consumer CIN as required by law.

Investigations also determined that on six occasions between June and November 2009, Kumar and Sunrise Motor Group falsely represented that vehicles had not been imported in a damaged condition, when in fact they had. On two further occasions Sunrise Motor Group failed to complete the mandatory information box on the CIN in relation to vehicles which had been imported in a damaged condition and when questioned by prospective buyers of those

vehicles, Sunrise Motor Group and Kumar made false representations about that damage.

Kumar was personally liable for the contraventions of the Fair Trading Act in relation to the CINs in the motor vehicles displayed at his company’s premises as he entered the information about on the CINs knowing that information was false. Likewise, he was personally liable for the false statements he made to prospective purchasers about the damage to vehicles being offered for sale by Sunrise Motor Group.

When contacted by Autofile Kumar said that Sunrise Motor Group is no longer open, and the business is in the processes

of closing down and selling its stock. Kumar said that the business couldn’t afford to pay the fines, totaling $28,800. Kumar indicated that he intends to remain in the motor vehicle trade, but will be leaving Porirua for good.

Allan says that the Commerce Commission has a general concern about the motor vehicle industry’s compliance with the Fair Trading Act and CIN regulations, which is why the Commission recently wrote to approximately 2500 registered motor vehicle traders reminding them of their obligations in relation to the CIN Regulations and compliance with the Fair Trading Act.

Traders are required to display correct CINs by the Consumer Information Standards (Used Motor Vehicles) Regulations 2008, which are administered under the Fair Trading Act.

Concern about industry’s compliance with the Fair Trading Act and CIN regulations says Commerce Commission

Modern lights outpace regulationsnZTa Is currently consulting on amendments to rules for vehicle lightings. Some light features on new vehicles, including headlights and braking employing multiple lights do not comply with NZTA rules, and distributors are being forced to apply for exemptions for vehicles.

One quirk of the system is that a vehicle of the same model imported into New Zealand from Australia would comply, but not if imported directly.

The MIA’s Perry Kerr says that the change is something they’ve been pushing for over the last two and a half years.

“The New Zealand rule got out of sync with in particular the European standard, and it

meant that features were in fact illegal in terms of New Zealand legislation.

You’ve got vehicles that have the latest technology, but which don’t meet New Zealand standards.”

Kerr says that blanket exemptions were not possible, and so instead of applying for an exemption for a particular model or feature, distributors were forced to apply for exemptions for batches of vehicles each time a shipment came in.

Examples of ‘illegal’ lighting technology include the LED headlights on the Lexus LS600hL, and dynamic brake lights with hazards on some BMWs. Dynamic

brake lights function as normal for mild braking, but with heavy braking the brake lights flash. In extreme braking the hazard warning lights will also flash, something which was not envisaged when the rules were written.

“That’s one of the frustrations we’ve got with the whole system, is that it doesn’t seem to be able

to cope quickly and easily with making changes to align the New Zealand regulations with overseas standards.”

Kerr says that rules such as lighting standards for new vehicles should be able to be changed more quickly. “We believe it should take less than three months, because there’s going to be

no objections, it’s just the way the process is set up.”

A provision in the Land Transport Amendment Bill, currently before Parliament, will allow future rule changes to be made by order in council where immediate changes are needed, without going through a submissions process.

LED headlights such as on the LS 600hL don't comply with current Land Transport rules


Associations to consult members on age ban

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The IndusTry discussion on a rolling age ban continues, with the three associations having share views. Dougal Morrison, the MTA’s advocacy and training manager, says the next step for the MTA is to form a proposal and discuss the matter with their dealer committees at the MTA conference, being held on November 4.

“We’re certainly keen to see it happen and we see the benefits of simplifying, and smoothing out things in terms of importation and possibly the benefits of long-term improvement to safety and emissions.”

Morrison says that last time the concept was raised both franchise and used dealer committees were in favour. “The last time we discussed it with them they were supportive, but now we want to have another discussion and it seems that there is a bit more appetite in Government, so that’s positive, but we’ll need to go and have discussions with Foreign Affairs and Trade as well.

“Under World Trade Organisation (WTO) rules any restrictions should be technically based rather than arbitrary, but other countries are doing it, so there are some precedents there I guess.”

IMVIA chief executive David Vinsen says that he has received a small amount of feedback from members, none of it averse, but that they are considering doing a formal poll.

“In order to be able to speak with any authority we really want to know what our members are thinking about it. We haven’t yet decided to do it but I’d say it’s highly likely.

“The feeling is that now that Perry [Kerr] has raised the matter, it’s being discussed by ourselves, MTA, MIA, we’ve discussed it informally with MoT and also with the AA. So all the major players are giving some consideration to their positions on this issue.”

Vinsen says that the real benefit of a rolling age ban for his members would be clarity, simplicity and

certainty. However he doesn’t see it as the ideal solution. “The downside would be that there would be a large number of vehicles which are currently imported that aren’t able to come in. It would skew the market and change the market again. Whenever there’s intervention there’s always issues.”

Vinsen remains adamant that for an age ban to work the industry would need an undertaking that it would be the only regulatory mechanism.

“We wouldn’t want to have a rolling age ban and then to have some politician getting a bright idea to introduce some new standard, whether safety or emissions. Our argument is that with a rolling age ban we’d pick up new features in time as the rolling age ban moves forward, and as those vehicles become affordable and available.”

Vinsen believes that it might be difficult get traction with the Government on the idea. “The Government is pretty much wedded to the idea of having a standards based regime.”

MIA chief executive officer Perry says discussions are

progressing fairly positively between the three associations. “We see it as very positive, we’re trying to work to come up with an agreement which we can collectively take to Government.”

Kerr says that a unified industry position would be a significant development.

“We’ve got to all agree on what we want, which we’ve never done. This would be the first time in 20 years and hopefully it would carry a significant amount of strength, because we haven’t been in this position before in terms of trying to resolve how we deal with used imports and compliance. I think certainly the officials will recognise it and we will certainly talk to senior politicians to get them to understand the significance of it.”

Kerr sees the biggest challenge

as convincing lawmakers that an age ban is the best way of improving New Zealand’s light fleet. “The Government has got its 2020 strategy, where they’ve identified certain safety systems as desirable. It’s then going to be a matter of talking to the likes of [Transport Minister] Stephen Joyce, to get him to understand that an age ban isn’t going to achieve exactly what he wants, but it is going to be significantly better than system we’ve got at the moment.”

Kerr believes that an age ban will be the most effective way of improving the light fleet. “It will be slow, but whatever they put in place will be slow. Electronic Stability Control is going to be slow to go through the fleet. Whatever they put in place is going to take 20 plus years.”

"This would be the first time in 20 years [the industry has been in agreement], and hopefully it would carry a significant amount of strength, because we haven’t been in this position before in terms of trying to resolve how we deal with used imports and compliance."


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Tracking unregistered tradersThe naTIonal Enforcement Unit (NEU), part of the Ministry of Economic Development, is responsible for sections 95-119 of the Motor Vehicle Sales Act (MVSA). This involves investigating odometer tampering and motor vehicle traders who are trading illegally, including unregistered traders.

With seven investigators in Auckland, the NEU proactively monitors motor vehicle trading by analysing information received from Customs, Trade Me, and NZTA. It will also investigate individuals if a complaint is received.

Manager of the unit Phil Day says that after the MVSA came into effect in 2003 the NEU spent the first couple of years educating people with the new law, and started taking prosecution action in 2005.

He says that in the early days of the Act investigators were routinely visiting car yards, as well as monitoring online trading. Since then yard visits have been

discontinued, with attention remaining on analysing information. “We’ve retained the methods from which we obtained our best results, namely Trade Me, Customs and NZTA. But we found that we never got a lot of results from car yard checks, which is one of the reasons why they were discontinued.”

With wide-ranging responsibilities it’s always necessary for the NEU to evaluate its priorities, says Day. “We put a lot of focus and energy into the MVSA in 2003 and the early days of the Act, as a result we took a lot of successful prosecutions, and complaints reduced which indicated to us that the offending was at lower levels. With finance company collapses going on we had to focus on a number of large criminal investigations and prosecutions, and we had to refocus our priorities. But that’s not to say that we took our eye off the ball of any Act that we enforce. We enforce 17 pieces

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prIvaTe sales of motor vehicles have increased 27% between 1999 and 2009, from 350,000 to 450,000. Dealer sales and trade-ins showed modest increases in the middle of the decade, but have fallen away in recent years.

The popularity of Trade Me is without doubt a significant factor in the increase in private sales. But the margins associated with offering consumer protections also means that many dealers aren’t able to operate effectively at the lower end of the market, says Motor Trade Association (MTA) dealer services manager Tony Everett.

Everett says that on a low value trade-in, for which a dealer might pay $2,000, costs for refurbishment, consumer protections and dealer margins

means that for it to remain profitable a dealer is looking at retailing the car at around $5,000, a margin which relative to the purchase price is unjustifiable.

Such margins are necessary because of the high probability of having to address very costly after-sale faults with older vehicles, says Everett.

“If the dealer sells an older car and two months later something serious breaks, and chances are the repair could well be worth more than the car’s value. Dealers are effectively legislated out of the business. One or two CGA claims and all the profit from that, and probably several other vehicles, is gone.”

Everett says that it was for this

reason that MTA proposed in their submission on the Consumer Law Reform discussion document that dealers be able to contract out of the CGA on low value vehicles. He says that the $5,000 price point was used for the sake of the discussion, but that the important issue is whether such a concept would benefit the public and the trade alike.

“We think it would legitimise the business and bring it back to a trader environment.”

He believes that the main benefit for consumers would come from higher trade-in values. Nevertheless there would still be important advantages for consumers purchasing off traders as distinct from the public, says Everett, even if the CGA didn’t

apply. “You’ve got guarantee of title and the fact it will legitimately have a new Warrant of Fitness at the time of sale. And you’d probably find that good reputable traders would attend to some problems with the vehicle, because it’s their name at stake.”

Everett believes that the current consumer law reform process provides a good opportunity to examine whether the Consumer Guarantees Act really benefits consumers when it comes to low values used vehicles.

“If Consumer Affairs are happy to say that all old cars should be sold privately, they’ve got exactly what they’re after. But if they didn’t envisage that, then arguably it’s not really working to the best effect”.

Private sales unintended consequence of CGA says MTA


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Car Market TradingIn earlIer coverage Autofile identified three varieties of the private seller who regularly sells at the Ellerslie Car Fair. One trader who contacted us says that there is a fourth type selling at car fairs, namely registered traders. While wishing to remain unnamed, he says that since changes to the law in 2003 meant that dealers could sell at car markets, he and a number of other traders have regularly been attending the Ellerslie Car Fair.

However being a dealer isn’t an asset, he says, and the public are often wary. “It’s quite interesting to see the reaction of people if they know you’re a dealer. They’d prefer to take a risk and purchase from a complete stranger in a car park rather than a dealer with a door to knock on if something does go wrong.”

The trader sells cars in the $4,000 - $10,000 range. An ex-mechanic who services his own vehicles, he says he’s careful to sell vehicles which buyers aren’t likely to find problematic.

His vehicles come with consumer protections, but the vast majority of vehicles sold at the car fair are by members of the public. While many of these are ordinary people looking to sell their vehicles, he says that there are also some vehicles being sold for one or two thousand dollars which are at the end of their useful life.

He believes that there are unregistered traders selling vehicles at Ellerslie, who are likely to use the name of a friend or relative to avoid being caught.“They arrive with a whole bunch of friends and neighbours, and they put the cars in their

names. So you’ve got the same operator but he’s never on paper as the seller, and he presents a moving target.”

“At the minute they’re doing vans for unsuspecting tourists because it’s the tourist season. They’ll turn up with about three or four campervans, vans they convert putting a mattress in them and some curtains and then sell them to the tourists.

It’s these people who give the used car business a bad name.”

He says that as a legitimate,

tax-paying business man it’s disappointing to see.

“Years ago when they were changing the law I wrote in a submission, urging them not to do what they have done, because I did work in Britain back in the late ’70s and I saw what deregulation had done over there. All it did was boost the black economy. The situation now is that the country is missing out on an extreme amount of tax. I’d estimate that a significant portion of vehicles sold through the car fair is tax avoidance.”

Tracking unregistered tradersof legislation, but last year we put a lot of time and effort into the MVSA. It’s certainly up in the top five of the 17 pieces of legislation which we enforce.”

Day says that in terms of the numbers of complaints received, and their proactive monitoring, he is comfortable with the level of investigations, and believes with Trade Me monitoring they’re taking on a good proportion of unregistered traders. “We’ve had some very good results, most of them are unregistered traders but there’s also odometer tampering and failing to pay the principal.”

Since beginning to prosecute in 2005 there have been 56 successful prosecutions for breaches of the Act, of which 44 of these were for unregistered traders. These charges related to approximately 1,000 vehicles being sold by unregistered traders, with an average of 18 vehicles for each offence.

Day says that over this time Trade

Me have referred 1323 potential unregistered traders to the NEU. Of these 54 were further investigated, and about half of these were successfully prosecuted.

Over the past 4 years NEU have also warned approximately 25 people for unregistered trading, which are usually people at the lower end of the scale of offending or who then register.

The unit will also look into any complaint received says Day. Complaints must be in writing, though they can be filed anonymously. Their website www.enforcement.med.govt.nz contains the complaints form, as well as results of their investigations.

One important point to keep in mind says Day is that there there is a six-month limitation period for the laying of charges under the MVSA. If a report is lodged five months after the event then the unit will only have one month to investigate and potentially lay charges.


continued from page 1

vehicle industry have had to make dramatic adjustments, including retrenchment of skilled staff, closures of branches and loss of revenue and profits to deal with the effects of the Rule ie wildly fluctuating volumes of imported used vehicles.”

The submission seeks that the rule be deferred for two years, saying that a two-year delay in implementation would enable the used vehicle import industry to continue to operate as the market demands. “Stock would be able to be purchased as normal, and in two years the availability in Japan of compliant vehicles, (those with triple-digit Exhaust Emission codes), would be sufficient to enable normal levels of importing activity to continue.”

The submission details a number of advantages from deferring the rule:

Provision of a breathing space for a beleaguered industry, struggling to adjust to terms with widely varying volumes of imported used vehicles.

Job stability in the used import industry, crucial at a time when the threat of unemployment is one of the key drivers of low levels of consumer confidence.

Price stability. Continued supplies of used vehicles in balance with market demand would ensure there would be no sudden increases in the prices of used vehicles, with the consequent effect on inflation. The costs of replacement vehicles would remain stable at a time when all are being encouraged to ‘live within our means.’

The submission says that the effects of the emission rule are being amplified by the economic developments of the past few years. “Although the industry and government were expecting a reduction in used vehicle import numbers with the introduction of the final phase of the Rule in January 2012, no-one foresaw the economic recession and its effects on the market, consumer confidence and employment. The next phase of the Rule would exacerbate all of these factors for the used vehicle industry ie. volumes would drop, prices would increase and skilled staff would be laid off.”

A 50% reduction The IMVIA’s projection that the number of used imports imported into NZ in the 2012 calendar year is likely to be between 45,000 and 60,000 units is based on the assumptions that: the Japanese domestic

economy remains at the same level of activity ie that Japan’s domestic new vehicle sales numbers continue at the current level

the NZ economy and consumer confidence continues at current levels

there are no significant changes in the Japan/NZ FX rate ie that it remains at about 60JPY/NZ$

net immigration into NZ continues at about current levels.

news

IMVIA seeks deferral of emission rule

“Staff numbers will be reduced due to lower volumes; most affected will be in the workshop area, where, in anticipation of the change, we are currently NOT replacing any staff leaving”.Darryl, McGifford, General Manager, AutoTerminal New Zealand

“..the reduction in Entry Certification services will impact on our Testing Stations…the specific skills lost during such an industry retrenchment would be difficult to replace. This has proven to be the case in past Emissions Rule changes and during the height of the economic downturn”Frank Willett, General Manager, Vehicle Inspection New Zealand

“VSS will have no option but to reduce our staff level by 50% to counter the drop in workload. VSS spending on parts and related trades would halve. This would have a dramatic effect on our suppliers and would definitely cause them to lay off staff” Terry Saville, Managing Director, Vehicle Safety Systems

“…a likely 20% reduction in qualifying imports will have a significant affect on reducing revenues for ourselves and government, and will not allow us to sustain current staffing resources, resulting in the loss of jobs and skills within our organisation as well as the industries we support –

mechanical workshops, paint and panel shops” Steve Owens, Managing Director, Vero Warranty New Zealand

“For VTNZ this would result in job losses in the range of 30 to 40 employees and these skills would be lost from the automotive industry. …we estimate about 20% to 30% of compliance sites would be forced to close as they would no longer be viable” Mike Walsh, Chief Executive, Vehicle Testing New Zealand

"The next phase of the Exhaust emissions rule is expected to have serious consequences on income, profit, tax payments, GST and staffing.

At this time of very fragile and struggling economic performance…we believe the implementation of the next phase of emission rules in 2012 will adversely affect a vast variety of companies, trades and also indirectly every individual in NZ.

We submit a plea to the NZ Government to stop and take a breath.

We request that you delay the next phase of this rule, and more closely study the effects that it will have, not only to this company but for all New Zealanders, including the massive losses you will sustain in income tax, GST and through unemployment”. John Davies, Managing Director, Autohub New Zealand

QuOTES FROM ThE INDuSTRy CONTAINED IN ThE SubMISSION

households have made a multi-billion dollar move away from borrowing towards saving in the past two or three years, which is already reshaping the nature of the current economic recovery, says Finance Minister Bill English.

The recovery is not being led by traditional “sugar fixes” of borrowing, consumption and retail spending said English.

“New Zealanders understand our need to rebalance the economy away from debt and spending towards savings and investment.”

Treasury analysis shows households withdrew several billion dollars of equity from their homes between 2003 and 2008 – effectively borrowing to boost their disposable incomes.

At its peak in 2007, that equity withdrawal exceeded $7 billion.

Households are now reducing borrowing and injecting equity into their homes. In the year to 31 March 2009, that equity injection amounted to about $5 billion.

“That’s a significant change, equivalent to about a 10 per cent reduction in household incomes available for spending.

“At the same time, household consumption has fallen from a peak of more than 64 per cent of GDP in 2007 to 62 per cent this year. The Reserve Bank forecasts this will decline further to about 60 per cent of GDP by 2013.

“While this will make it challenging for retailers and other domestic industries in the short term, it is what the economy needs over the long term as we build our future on savings, productive investment and exports.”

No “sugar fixes” says English


seaT BelT Shop Tauranga was founded by husband and wife Merv and Jocelyn in the days when all used imports required seat belts to be installed. While that’s changed, the name has stuck. They’re now a staff of four, and Seat Belt Shop Tauranga do compliancing for dealers in Tauranga, and also are experienced compliers of classic American cars. “No matter where they come from we’re prepared to do them,” says Merv, including English cars and rally vehicles.

They also retain their specialisation in seatbelts, and will do replacements on vehicles that have failed WoFs due to

seatbelt issues on all but the most modern vehicles.

They also use an American-brand of seatbelts to suit older American cars. Merv say that they bring these in themselves, which are popular with the Hot Rod crowd. “There’s quite a big Hot Rodding faction that deal with older American-style cars and of course the new plastic seatbelt, while it’s safe, doesn’t look nice, so we bring in older-style seat-belts specially for those cars.”

Seat Belt Shop Tauranga also install anchor points for baby seats. Working with Plunket, Merv says it’s their small contribution to child

safety. Customers can purchase their babyseat through Plunket, and then come to Seat Belt Shop Tauranga to get the anchor points put in.

Seat Belt Shop Tauranga was nominated for Serving the Industry by Neil Carter of Warehouse Cars. “The one that stands out is Seat

Belt Shop in Brook St, they do seat belt compliancing for our vehicles, but they also drill in an fit the clip for a minimal cost, virtually for nothing.” Neil says that in addition to do work on his vehicles he’s happy to refer customers, “Their service is just brilliant.”

speedWell Tune and Service Centre is a busy workshop, says owner Rod Pickerill. Located on Sloper Avenue he’s been running the business 20 years, and in the trade for 35. With a team of five, Rod says they like to look after their customers. “We don’t do any advertising because we’re never hunting for work.”

Rod says his staff have been with him for a good number of years, so customers can communicate well with the workshop if Rod isn’t available.

They’re used to seeing problem jobs, including tuning problems, something which Rod

credits as having brought on a few grey hairs. They do quite a lot of diagnostic work, and tuning and problem vehicles are a large part of their business.

Shayne O’Hagan at Ideal Cars nominated Speedwell Tune and Service Centre for Serving the Industry. “They do good value, they do speedy turn around, and they’re very good at diagnosing tricky problems such as engine diagnostics. They’re nice people and easy to work with, and they get the job done, no mess, no fuss.”

Shayne says they’ve been using them on and off for 12 years, though now he’s using

them for all his work. “We used to send the problems that no one else can fix to them, which sounds kind of mean, but they’re really good at it.”

Rod says in the past few years the proportion of their work that is dealers has dropped away,

with the majority now retail. He believes in part this is due to better build quality. “People aren’t spending as much on repairs as they used to, there are general improvements such as a lot of cars are going to a timing chain rather than a cam belt.”

Serving the Industry

Compliance shop and seat belts in Tauranga

Quality servicing in Hamilton

If you receive first-rate service, nominating them for Serving the Industry is a great way to say thanks. Profiled in autofile free of charge, they’ll get excellent exposure to the industry. It’s also a way for you to share with fellow dealers a reliable service.

To nominate a company or tradesperson, email us at [email protected] or call 021-247-7782

Serving the Industry, proudly sponsored by Autohub, provides an opportunity for people within the automotive industry to recognise a small to medium sized company that provides excellent service.

Your Japan to nZ logistics solution


News in brief

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Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ.

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contact: Reg Ollay 0274 945 391 09 3788120 or 09 3788121email: [email protected]

news

Armacup support latest cure kids eventArmacup are a main sponsor of Cure Kids latest outdoor event, “Walk on The Wild Side.”

The 17km off-road event is the brain child of Cure Kids Great Adventure Race Director Alan Nelson, with a concept to create a national adventure walk series with the first being launched at Bethells Beach in the Waitakere Ranges on Sunday, November 14 this year.“Armacup are excited to continue to support Cure Kids by being there alongside them to help launch this fantastic new event – and we’ll have a team participating on the day too” says Armacup Director, Mark Ching.

POAL director resigns; Q1 volumes up Ports of Auckland managing director Jens Madsen has announced he will resign. Madsen joined the Port as chief operating officer in February 2006. His career includes 28 years with the world’s largest shipping group, AP Moller-Maersk. He also established and headed Maersk’s New Zealand arm from 1996 to 2000. Madsen will continue in the role until February 2011, with a replacement yet to be named.

Meanwhile the Port has announced an increase in volumes for the first quarter of the financial year. Madsen says the increase is a positive sign for the economy. Overall container volumes (TEU or 20ft equivalent units) in the three months to 30 September were up nearly 8% on the same period last year. Of container volumes, full import containers were up over 10% while full export containers were up 4%. Vehicle units, which includes cars, trucks and equipment such as farm machinery were up by more than 25%.

Driving as safe as flying says Mercedes expertMercedes-Benz Car’s vice-president of safety engineering Ulrich Mellinghoff says that road fatalities can be cut in ten years from the current one in 20,000 people to one in 100,000, the same as air traffic.

Mellinghoff made the comments in Melbourne as he revealed new experimental crash safety systems which Mercedes expects to fit into its next generation of its luxury cars. These include side-impact bars that inflate like steel airbags in the doors, an underbody airbag that jams into the road surface to double braking force the moment before a crash and seats that move occupants away from the doors milliseconds before impact.

Mr Mellinghoff said a zero road toll might be beyond the motor industry and roads authorities in the foreseeable future, but a much lower death rate was not only possible but expected. He said that features such as car-to-car communication and radar-based crash avoidance would improve safety. - GoAuto


The IMVIA Technical Report is proudly brought to you by leading certifi cation service provider, VINZ

from the trade and for the trade

There Is a world-wide trend towards harmonisation of vehicle standards. As the manufacturers move towards rationalising their product ranges, using manufacturing facilities in different countries; the concept of a “World-Car” is coming closer to reality.

Different jurisdictions are also working towards harmonisation of standards, specifications and technical requirements.

The ASEAN Automotive Federation Technical Committee 3 met recently.

The main objective of this technical committee is to harmonise “Technical Regulations” with international Regulations i.e. ECE. Another of this committee’s aims is to achieve Mutual Recognition of Approval (MRA) which means that, in the future, a vehicle approved in one country will be accepted in another jurisdiction by virtue of the

fact it has approval in one of the signatory countries.

This ASEAN committee is in addition to the EN-ECE Working Party 29 (WP29) that most European countries, Australia, New Zealand and other countries are signatories to, and members of. This WP meets with the goal of harmonising global vehicle standards, both safety and environmental standards. This goal is summarized in the

international agreement: To establish a global process

by which Contracting Parties from all regions of the world can jointly develop global technical regulations regarding the safety, environmental protection, energy efficiency, and anti-theft performance of wheeled vehicles, equipment and parts which can be fitted and/or be used on wheeled vehicles;

In other words, global standards.

ASEAN countries are progressing gradually towards accession to WP29.

WP29 plans to develop an International Whole Vehicle Type Approval (IWVTA) system along the lines of the EU Whole of Vehicle Approval system that is currently in use in Europe.

UK StandardsA number of dealers are finding that the UK is a good source market for late model vehicles; the IMVIA is getting increasing enquiries about compliance issues for vehicles ex UK.

There are some pitfalls in importing vehicles from the UK especially in recognising if a vehicle is in fact compliant for New Zealand. We have access to information

with MALCOLM YORSTONIMVIA Membership and

Technical Services Manager

tech report

that we have successfully used in submissions to NZTA to have UK vehicles certified, which, at face value, would not comply.

We have also been able to facilitate the registration of vehicles from other European countries including Bulgaria and Bosnia; these are trickier and more homework is needed to be done in order to put a submission to NZTA for acceptance, but it is achievable in a number of cases.

We advise IMVIA members free of charge, non-members will be

charged for the service we provide. If you wish to use our services

please provide scanned copies of original documents, including the V5C Registration Certificate. We will review the documents so we can advise you on the likelihood of certification.

International Vehicle Standards

For more information contact the IMVIA [email protected]

new cars

Ford’s all-neW Ranger ute, designed to be “the new face of Built Ford Tough” in 180 countries. With styling that Ford calls “taut and toned” and “21st Century Tough,” the new Ranger will be built from next year in three factories – in Argentina, South Africa and Thailand (where NZ utes will come from).

Based on a new, stronger chassis, Rangers will come in a wide range of two- or four-wheel drive models and a choice of two Duratorq TDCi diesels or a petrol four.

The 2.2-litre diesel offers 375Nm and 110kW and the 3.2-litre diesel’s

outputs are 470Nm and 147kW (200 PS). The 2.5-litre petrol four develops 122kW and can be configured for E100 flexible fuel or converted to run on CNG or LPG.

Transmissions include a new six-speed automatic with selectable Normal and Sport modes and available on both two- and four-wheel drive versions.

There’s also a new six-speed manual and Ford’s established five-speed manual is standard with the 2.5-litre petrol engine.

Four wheel drive models can be equipped with an electric locking differential or a limited

slip differential. Rangers will come in three

different cab formats, two ride heights (up to 232mm) and versions from basic workhorses with hose-out interiors to high-series trucks, like the Limited and Wildtrak.

They’ll have strong towing capability, payloads of up to 1500kg and a comfortable, quiet, more refined ride to offer “a sophisticated driving experience (that buyers) would expect to find only in a car.”

Options will include Adaptive Load Control, Trailer Sway Control, Rear Park Assist and a rear-view camera.

Front suspension is coil-over-strut, tuned individually for two- and four-wheel drive models. At the rear, an entirely new leaf-spring suspension is designed to give a smooth, firm yet comfortable ride without compromising load capacity.

Rangers will be available with an Electronic Stability Program (ESP) that includes four-wheel traction control, yaw control and rollover mitigation. Under extreme conditions, the Traction Control System reduces engine torque by managing spark and fuel delivery.

suBaru Wheeled out a more potent concept car version of the Forester turbo compact SUV at the Sydney motor show.

It gave the S-Edition concept, which is based on the current Forester XT, its worldwide debut in Sydney.

The car’s turbocharged 2.5-litre 193kW engine is 24kW more powerful than the XT’s and develop 347Nm of peak torque, a 27Nm rise.

The show car also had a five-speed automatic gearbox with manual paddle-shift; uprated sports suspension; Variable Torque Distribution (VTD) all-wheel drive; STi 17-inch high lustre alloy wheels; Alcantara seat trim with S-Edition logos, and drilled aluminium pedals. Subaru Australia boss, Nick Senior, says the show car “points towards an exciting development in the Forester range early next year.”

Forester show car hints at 2011 model

Kizashi flexes muscle at Sydney show

Redesigned Ranger Ford’s new global ute

suZukI unveIled this muscular – in looks and performance – concept car version of its mid-sized Kizashi sedan at the Australian International Motor Show in Sydney last Friday. The Kizashi Turbo’s turbocharged 2.4-litre four-cylinder motor develops 179 kW (up from the standard car’s 131kW), and peak torque of 330Nm, a rise of 100Nm. Developed jointly by Suzuki

and American outfit, Road Race Motorsports, the Turbo Concept also gets a lower ride height, uprated brakes and a front suspension strut brace for increased rigidity.

It has 19-inch alloy wheels fitted with 245/40 x 19 inch Pirelli P-Zero tyres.

Gearbox is a six-speed manual, and Suzuki says it will assess public reaction before deciding whether

to put the turbo car into production.



ChrIs shaCkel has been involved in the motor industry for 24 years, beginning at the same time as imports started flowing into NZ. Chris started his career as a groomer in Christchurch, from there becoming a sales man and purchaser.

Chris had the opportunity to open his own yard in Christchurch 17 years ago, and then later moved to Wellington to take on the challenges of the Capital. He formed Shackel Motor Company with his brother Greg. Greg has been in the motor vehicle industry for the same period of time and runs the two dealerships in Lower Hutt, while Chris operates the city branch along with two branch managers. “Three locations in two different cities really gives us a huge demographic to work with,” says Chris.

Shackel Motor Company sells primarily used imports. Price points range from $8,000 through to $40,000, and Chris says it’s important to have the variety to meet all areas of market. He finds

the market reasonably consistent, and says that with a large variety of stock, what doesn’t sell well one week picks up the next, it’s just a matter of having selection.

"Business is very steady and we are very pleased with our results to date so far this year, we believe the next 12 months will only improve further," says Chris.. “It’s a matter of working away on it month to month, but it’s certainly not easy. You’ve got to work pretty hard for every sale, and just keep chipping away at it.”

“The buying in Japan is very

Chris Shackel Shackel Motor Company

Protecta dealer profile

difficult at the moment to source the stock we want. The selection is there but the price it’s selling for is not right.

“There’s a reasonable amount of cars going through auction, and there’s a lot of target stock, but it’s still very hard to buy them and make it work back here, for what other markets are actually paying for them.

“The currency seems to be pretty stable. Really if dealers have been buying cars they’ve been pretty fortunate that the currency is stable.”

Chris says the ingredients that make Shackel Motor Company a successful dealership are that staff are motivated and focused on customer service, as well as the ability of the dealership to be aware of changes in the market and to respond accordingly.

Processes and systems are important to Shackel Motor Company for each department, as it allows each department to operate effectively alongside the others, and allows them to be able to act instead of reacting.

The lessons learnt from the last year, are to keep a good mix of stock with competitive prices, and to keep staff motivated. Chris sees the next 12 months as gaining

momentum and being generally more positive, but the unknowns are how the new regulations will affect the market regarding availability of stock and the impact of the Chinese imports.

Chris sees F & I as very important and believes every dealership should have an F & I department. Shackel Motor Company work hard at making this department work effectively.

“Protecta Insurance is an important part of our business besides the excellent products they supply they communicate well, their F & I reporting helps the business managers and myself to see where we have done well and where we need to make improvements, we can see immediately the profit per vehicle retailed which we monitor. They help with our training which has been a great benefit to Shackel Motor Company.”

Chris is a family man who enjoys boating and skiing. Shackel Motor Company are proud to have supported a number of organisations, including Plunket Society of New Zealand, New Zealand Health Support’s Underprivileged Children’s Christmas Camp, Life Flight Trust and Miramar Softball Club Inc.

PROTECTA NationwideSeptember 2010 F & I results

Best result $1,830

Worst result $159

Avg strike rAtes Used NeW

Finance Contracts 51% 32%

Payment protection 47% 10%

GAP 18% 12%

Motor Vehicle Insurance 18% 16%

Mechanical breakdown 53%

The Railway Ave branch in Lower Hutt


law . bd

law . Problem solver bd

Bruce Dell Law – “problem solver”

autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on the lessons to be learned from past Motor Vehicle Disputes Tribunal casesIf you require legal advice give Bruce a call on 09 570 5036

Bruce Dell Law – “problem solver”Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North

autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on past Motor Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036

disputes

CIN error omits damaged vehicle description BackgroundOn 17 October 2009 the purchaser bought a 2000 Honda Accord for $8,995 from the trader. The car was imported as a damaged vehicle but was not disclosed as a damaged vehicle on the consumer information notice (CIN) provided. The purchaser wished to return the car, obtain a refund of the purchase price as well as some damages for consequential loss.

The trader’s director acknowledged that the CIN mistakenly recorded the status of the car – it was in fact imported as a damaged vehicle. The trader’s submission was that the purchaser should not be able to reject the car, primarily because she knew the car was damaged.

EvidenceBefore the purchaser signed the vehicle offer and sale agreement (VOSA) she asked whether the car was damaged. The salesperson (who did not appear at the hearing) told her that he didn’t know. The purchaser made her own assessment by looking at the car herself. She said it did not appear damaged so she concluded it was probably okay.

When the purchaser bought the car, she was provided with a CIN which indicated that it had not been imported as a damaged vehicle. The information on the CIN was incorrect. As indicated on the Land Transport NZ motochek the purchaser produced at the hearing – the car had in fact been imported as a damaged vehicle.

The purchaser did not become aware of the car’s “damaged” status until she was approached by an investigator on 17 March this year.

The investigator told her that the car had been imported as a damaged vehicle and provided her with photographs taken at the time of import. The purchaser produced these photographs for the tribunal. They indicate reasonably significant damage to the rear of the car, denting the rear fender and causing some misalignment of the right rear panel and boot. The purchaser’s evidence to the tribunal was that had she known of the car’s status as a “damaged” vehicle she may still have gone ahead with the purchase but she would have paid a lot less for the car.

The purchaser contacted the trader by email dated 18 April 2010 asking for a refund of the purchase price ($8,995) and to be reimbursed for various costs she had incurred in respect of the car – in total $9,980.29. The additional costs included costs for an investigation into an engine surging issue ($80.16), replacement tyres ($467), investigation into a wheel alignment issue ($118.13) and removal and installation of a car alarm and stereo ($320).

The purchaser and the trader subsequently entered into negotiations for compensation although the purchaser had difficulties getting the trader to respond to her emails and calls. Although a tentative agreement for the trader to pay the purchaser $2,800 was reached the settlement was not concluded. The trader told the purchaser that the settlement was conditional on her signing some papers for the investigator (she was not aware of the content of those documents). The purchaser took advice from the investigator and declined to proceed with the settlement. On

18 May 2010 the purchaser advised the trader that she wanted a full refund.

The director of the trader company appeared. He was not personally involved in any dealings with the purchaser. He gave evidence that he advised a friend of the purchaser’s that the car was damaged. His evidence was that he told the friend that the back bumper needed to be repaired and that there was some damage underneath the vehicle.

The decisionThe tribunal was satisfied that when sold to the purchaser the car did not match its description as set out on the CIN as required by law. The trader did not dispute that the car had been imported as a damaged vehicle when the CIN described it as not being imported as a damaged vehicle. The submission from the trader’s company was that a friend of the purchaser’s had been told the car was damaged and would be repaired prior to sale. With respect to the director, that is not the issue here. There is a distinction to be made between a car that has some damage that a trader undertakes to repair prior to sale and a car that has been imported as a “damaged” vehicle. The latter is a specific legal status that attaches to a car upon importation and remains part of the formal history of that vehicle. It has implications for resale value.

In this case the failure in the guarantee that goods match the description cannot be remedied because the mis-description relates to the fundamental state of the car. In those circumstances the purchaser has the choice of rejecting the vehicle (if such

The Case: The purchaser said she couldn’t know the car was damaged, while the trader said he told her friend

The Ruling: The Tribunal considered that vehicle did not match the description, as guaranteed under the CGA

At: The Motor Vehicle Disputes Tribunal, Wellington

rejection is carried out within a reasonable time) or obtaining compensation for a reduction in value because of the mis-description. There is no discretion on the part of the Tribunal to determine which remedy is the more appropriate.

In this case the purchaser’s application was to reject the car and obtain a refund of the purchase price. Whether the purchaser is entitled to reject the car depends on whether rejection is within a reasonable time. In this case the defect – ie the “damaged” nature of the car only became apparent when the investigator advised the purchaser. The Tribunal concluded that the purchaser’s email to the trader requiring a full refund amounted to a rejection pursuant to section 18 of the CGA and was within a reasonable timeframe as contemplated by section 20(2) of the Act.

In addition to a refund of the purchase price, the purchaser was also entitled to be reimbursed for any consequential loss. In this case, had the car not been mis-described the purchaser would not have incurred costs improving the car and investigating some mechanical issues, and it is appropriate that she be reimbursed for these costs. The trader is therefore ordered to pay the purchaser $9,980.29, who is ordered to return the vehicle to the trader.

Bruce Dell is on holiday and will return next issue.


disputes

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Business purchaser misled as CGA contract-out not mentionedBackgroundThe purchaser owns and operates a contracting business. On 9 February 2010 the purchaser bought a 1996 Toyota Hilux Surf for $10,000 from the trader. The vehicle’s engine seized a few weeks later, and the purchaser has applied to recover the cost of repairing the vehicle from the trader.

The trader’s position is that the Consumer Guarantees Act does not apply because the purchaser bought the vehicle for business purposes and contracted out of the Act.

The evidenceThe purchaser’s evidence was that he explained to the trader that he was purchasing the car for use in his business. He said the trader told him he would fix the car if something went wrong with it after he bought it and that there was no discussion about contracting out of the CGA.

The trader did not disagree with the purchaser’s evidence about that conversation but qualified his statements by saying that what he meant when he agreed that was prepared to remedy any minor problems. Both parties agreed that they never discussed contracting out of the CGA.

The purchaser agreed to buy the vehicle for $10,000. The trader agreed to deliver the vehicle, and no contract documents were exchanged prior to delivery. The purchaser’s evidence was that he had his cheque for $10,000 ready when the trader’s representative arrived to deliver the vehicle. He signed the VOSA at the same time that he handed over the cheque. The purchaser did not read the

VOSA before signing it and did not understand that it contained a clause contracting out of the CGA.

The day after he took possession of the car, the purchaser said he noticed that there was a problem with the air-conditioning. The following day he noticed that the four wheel drive was not working. He contacted the trader who suggested he take the vehicle to a mechanic and get a quote for repairs. When the mechanic inspected the car he also discovered aeration in the cooling system which indicated either a leaking cylinder gasket or a cracked head.

A week later the car suffered a major breakdown. The mechanics’s evidence was that when he dismantled the car he could observe at least nine cracks in the head and that the No 3 pre-combustion chamber was cracked and broken. He said that the engine needed to be reconditioned, for which he had invoiced for $5.817.56.

The rulingThe Tribunal considered whether the parties had contracted out of the CGA. The vehicle was being purchased for business purposes and the VOSA acknowledges this, and records the purchaser’s agreement that the CGA would not apply to the purchase. The question was whether or not a contract was formed and concluded prior to execution of the VOSA.

In this case, the parties had agreed all essential terms prior to delivery of the vehicle. It is open to the Tribunal to find that a contract had been formed at that point, which raises the question of the status of the VOSA. When the

car was delivered the VOSA was signed. It contained terms very different to those previously agreed. If this was a variation of terms previously agreed, there was no consideration for that variation and if that was the case the VOSA is not binding on the parties. If, however, the contract was not concluded prior to delivery and inspection, the VOSA is the formal record of the contract and binds the parties.

If the contract was agreed before delivery, the CGA applies to the sale and the purchaser has the protection of the guarantee of acceptable quality. If the contract is as recorded in the VOSA, the operation of the CGA does not apply. In that scenario, the tribunal’s finding is that the purchaser has been misled. This is because during negotiations, the trader told the purchaser that the trader would fix any problems that arose with the car after the purchaser took possession of the car. A reasonable inference to make from that conversation is that the trader would honour its obligations under the CGA. The trader did not disagree with the purchaser’s evidence about that conversation but said that he meant something less – that he would fix any “minor” problems – a construction the tribunal does not accept flows naturally from the conversation that took place.

The tribunal found that the trader’s behaviour was capable of being misleading and that the purchaser was in fact misled. The tribunal is also satisfied that it was reasonable for the purchaser to be misled. Although the purchaser

The Case: The trader said he would repair faults on the vehicle, but then on the VOSA contracted out of the CGA

The Ruling: The trader’s conduct was found to be misleading, and therefore he was liable for purchaser’s loss

At: The Motor Vehicle Disputes Tribunal, Palmerston North

is a commercial entity, it is a small business and the circumstances surrounding this transaction do not suggest a sophisticated commercial operation able to protect its own interests. On the contrary, the purchaser took no legal advice about this transaction and did not even read the contract documentation.

The remedies available for a breach of the Fair Trading Act are discretionary. The accepted approach to the assessment of loss or damage in the context of a breach of the Fair Trading Act is to consider the extent to which the claimant is worse off because of the breach of the Act. The purchaser is seeking to recover the costs of repair as set out in the mechanic’s invoice of 7 April 2010 – in total $5,817.56. The tribunal accepts the trader’s submission that some of those costs do not relate to the state of the car at the time of purchase. The tribunal also accepts the trader’s submission that the purchaser’s actions have exacerbated the existing problem.

Taking the advice of the tribunal’s expert assessor, the tribunal finds that the costs that relate to repair of that problem (ie not including costs that arise either because of the purchaser’s actions or repairs not related to the state of the car at the time of sale) are 2,712.39. The trader is therefore ordered to pay that amount.

NZ SALES OFFICETelephone: +64 9 257 0050Email: [email protected]

NZ CUSTOMER SERVICE CENTRETelephone: +64 9 257 0070Email: [email protected]

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Around the countryCar sales - September 2010

Biggest increases/Decreases By town year-on-year (septemBer ’10)

Biggest Increases New Used Oamaru 533.3% Whangarei 41.1%Greymouth 466.7% Oamaru 38.9%

Westport 133.3% Napier 28.9%

Smallest Increases New Used Wanganui 13.7% Blenheim 41.7%Invercargill 10.4% Westport 20.0%Christchurch 0% Nelson 2.1%

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JAN

‘10

FEB

‘10

MAR

‘10

APR

‘10

MAY

‘10

JUN

‘10

JUL ‘

10

AUg

‘10

SEPT

‘10

North Island

South Island

sales of neW passenger VehIcles VersUs Used Import passenger VehIcles

Vehi

cles

sol

d

8000

7000

6000

5000

4000

3000

JAN

‘09

FEB

‘09

MAR

‘09

APR

‘09

MAY

‘09

JUN

‘09

JUL ‘

09

AUg

‘09

SEPT

‘09

OCT ‘

09

NOV

‘09

DEC

‘09

JAN

‘10

FEB

‘10

MAR

‘10

APR

‘10

MAY

‘10

JUN

‘10

JUL ‘

10

AUg

‘10

SEPT

‘10

Used

New

industry statistics


Christchurch

6298

7430

1433

5997


industry statistics

New motorcycle sales by make

MAKE Sept ‘10 Market share YTD YTD Mrkt % Sept ‘09

SUZUKI 86 17.4% 887 18.1% 128

HARLEY DAVIDSON 66 13.4% 490 10.0% 93

MOPED 59 12.0% 859 17.5% 129

HONDA 49 9.9% 465 9.5% 57

TRIUMPH 39 7.9% 370 7.5% 70

YAMAHA 38 7.7% 365 7.4% 58

BUELL 21 4.3% 37 0.8% 10

HYOSUNG 20 4.1% 155 3.2% 20

BMW 17 3.4% 114 2.3% 9

KAWASAKI 16 3.2% 184 3.7% 32

PIAGGIO 13 2.6% 122 2.5% 14

APRILIA 8 1.6% 56 1.1% 7

VMOTO 8 1.6% 67 1.4% 0

FACTORY BUILT 6 1.2% 154 3.1% 26

VESPA 6 1.2% 49 1.0% 10

KTM 5 1.0% 76 1.5% 13

KYMCO 4 0.8% 50 1.0% 0

OTHER 32 6.5% 409 8.3% 42

ToTAl 493 100.0% 4909 100.0% 718

Used motorcycle sales by make

Make Sept ‘10Market

shareSept ‘09

HARLEY DAVIDSON 25 22.7% 29

HONDA 17 15.5% 32

SUZUKI 13 11.8% 14

KAWASAKI 10 9.1% 9

YAMAHA 9 8.2% 28

TRIUMPH 7 6.4% 13

VESPA 7 6.4% 4

BMW 5 4.5% 5

DUCATI 4 3.6% 13

APRILIA 3 2.7% 2

BUELL 2 1.8%

OTHER 8 7.3% 28

ToTAl 110 100.0% 177

WhIle moTorBIke sales continue to trend upwards as the weather warms, the market as a whole remains considerably down on last year, with sales at their lowest in some years.

Bob Boniface, general manager of BlueWing Honda, says roadbikes are one of the last segments to recover, while other areas of their business, including marine and trailer boats have started to pick up, while anything sold for use on farms, such as ATVs and two-wheeled farm bikes, are actually going quite strongly.

Boniface says that since in New Zealand there really is very little in terms of a commuter market, with most bikes purchased for recreation or hobby, and spending in that area has been very slow to come back. “Anything to do with discretionary expenditure on roadbikes, especially the toy sort of ones, is still very slow.”

The new ACC levies and

registration costs are also not helping matters, says Boniface. “On a 100 cc scooter the registration is as much as 25% of the cost of the scooter. We’ve seen that market just absolutely stop dead since the levies went up.”

However spring has seen a slight amelioration. “What we are finding is a slight improvement in the last couple of months, and what we are finding with individual dealers is that you get some great weather somewhere, a nice day, and the shop open on Saturday and Sunday, and all of a sudden they’re selling a few units. So people are starting to go out and have a look for toys again.”

Simon Meade, motorcycle sales manager at Suzuki sees a similar picture: “From where we sit the market is very soft. It’s a buyer’s market right at the moment, and there’s some very good pricing around.”

Meade says no one segment is performing better than any

other. Sales are some of the worst they’ve seen in a long time, with a variety of factors responsible. “Because we’re a luxury purchase we’re very much in the category of a want to have rather than a need to have. When we saw petrol at above two dollars a litre commuters sold very well, but with petrol prices still under two dollars that part of the market is still reduced considerably.”

“I think there will be a small uplift through the summer period as you usually get with the seasonality of roadbikes, but as

for a general uplift that’s going to satisfy everyone’s requirements, I’d say that’s unlikely through the next 6-9 months, I think we’re going to have to wait for the summer of 2011 before we see any resurgence.”

Meade says that dealers are definitely suffering. “It’s the metro dealers that are struggling, the rural dealers still have a fairly strong string to their bow with ATV sales and off-road sales. The rural market is keeping things going, but I wouldn’t say it’s strong.”

Motorcycle market remains soft

Roadbikes sales are still feeling the pinch


industry statistics

reGIstratIoN oF motor VeHIcles to september 2010

JAN ‘10 FEB ‘10 MAR ‘10 APR ‘10 MAY ‘10 JUN ‘10 JUl ‘10 AUG ‘10 SEPT ‘10 ToTAl

Total new passenger cars 5,605 4,302 5,395 4,586 4,613 5,788 4,448 4,723 6,300 45,760

Total re-registered passenger cars 225 306 288 253 284 231 266 230 283 2,366

Total used passenger cars 6,991 6,964 8,050 7,261 7,590 7,600 8,102 7,711 7,612 67,881

Total queries passenger cars 73 74 88 72 89 91 78 93 104 762

Total passenger cars 12,895 11,653 13,835 12,172 12,576 13,715 12,901 12,758 14,309 116,814

Total new goods vehicles 1,004 1,277 1,504 1,032 1,708 2,136 1,466 1537 1,501 13,165

Total re-registered goods vehicles 41 46 45 45 59 41 50 40 44 411

Total used goods vehicles 258 197 243 208 219 209 220 229 208 1,991

Total queries goods vehicles 26 30 39 41 33 35 44 34 47 329

Total goods vehicles 1,330 1,550 1,834 1,326 2,020 2,423 1,781 1842 1,800 15,906

ToTAl VEHIClES 14,356 13,329 15,668 13,496 14,727 16,257 14,795 14,815 16,295 133,981

Total new vehicles 6,706 5,659 6,991 5,689 6,415 8,009 5,999 6,437 7,946 59,851

Total re-registered vehicles 270 357 335 305 345 275 319 274 331 2,811

Total scratch vehicles 2 7 17 0 1 7 8 3 10 55

Total imported used vehicles 7,277 7,198 8,324 7,501 7,844 7,835 8,346 7,972 7,855 70,152

Total queries 101 108 129 116 122 131 123 129 153 1,112

ToTAl VEHIClES 14,356 13,329 15,796 13,611 14,727 16,257 14,795 14,815 16,295 133,981

New vehicles- % of total 46.71% 42.46% 44.26% 41.80% 43.56% 49.26% 40.55% 43.50% 53.70% 44.67%

Imported used vehicles- % of total 50.69% 54.00% 52.70% 55.11% 53.26% 48.19% 56.41% 53.88% 53.09% 52.36%

Re-registered vehicles- % of total 1.88% 2.68% 2.12% 2.24% 2.34% 1.69% 2.16% 1.85% 2.24% 2.10%

Queries- % of total 0.70% 0.81% 0.82% 0.85% 0.83% 0.81% 0.83% 0.87% 1.03% 0.83%

Total % all vehicles 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.12% 110.12% 100.00%

Used Import passeNGer VeHIcles arrIVals

12000

10000

8000

6000

4000

2000

JAN FEB MAR APR MAY JUN JUL AUg SEPT OCT NOV DEC

2009

2010


industry statistics

dealer-to-pUblIcSEPT ‘10 SEPT ‘09 % DIFF MARKET SHARE

Whangarei 504 500 0.80 23.9

Auckland 5113 5090 0.45 28.0

Hamilton 1381 1289 7.14 31.6

Thames 186 179 3.91 30.6

Tauranga 867 821 5.60 30.9

Rotorua 244 271 -9.96 28.1

Gisborne 183 182 0.55 33.3

Napier 439 548 -19.89 25.1

New Plymouth 453 460 -1.52 32.3

Wanganui 142 183 -22.40 24.8

Palmerston North 705 726 -2.89 31.7

Masterton 163 171 -4.68 33.1

Wellington 1298 1237 4.93 30.5

Nelson 296 321 -7.79 25.9

Blenheim 173 152 13.82 32.6

Greymouth 98 83 18.07 33.6

Westport 18 22 -18.18 15.4

Christchurch 1749 1905 -8.19 31.1

Timaru 196 241 -18.67 31.8

Oamaru 81 61 32.79 33.2

Dunedin 603 696 -13.36 28.9

Invercargill 412 471 -12.53 33.0

ToTAl 15304 15609 -1.95 29.3

pUblIc-to-dealerSEPT ‘10 SEPT ‘09 % DIFF

Whangarei 244 238 2.52

Auckland 3785 3691 2.55

Hamilton 1066 1034 3.09

Thames 96 67 43.28

Tauranga 541 597 -9.38

Rotorua 144 131 9.92

Gisborne 129 112 15.18

Napier 291 370 -21.35

New Plymouth 258 266 -3.01

Wanganui 115 107 7.48

Palmerston North 584 749 -22.03

Masterton 98 113 -13.27

Wellington 983 907 8.38

Nelson 214 228 -6.14

Blenheim 112 119 -5.88

Greymouth 58 47 23.40

Westport 2 3 -33.33

Christchurch 1446 1626 -11.07

Timaru 130 142 -8.45

Oamaru 14 16 -12.50

Dunedin 502 549 -8.56

Invercargill 313 370 -15.41

ToTAl 11125 11482 -3.11

total-to-pUblIcSEPT ‘10 SEPT ‘09 % DIFF

Whangarei 2112 2176 -2.94

Auckland 18255 18259 -0.02

Hamilton 4364 4122 5.87

Thames 607 602 0.83

Tauranga 2807 2683 4.62

Rotorua 869 983 -11.60

Gisborne 549 547 0.37

Napier 1748 1832 -4.59

New Plymouth 1403 1436 -2.30

Wanganui 573 631 -9.19

Palmerston North 2226 2231 -0.22

Masterton 493 533 -7.50

Wellington 4257 4306 -1.14

Nelson 1145 1181 -3.05

Blenheim 530 555 -4.50


Westport 117 116 0.86


Timaru 617 688 -10.32

Oamaru 244 224 8.93

Dunedin 2085 2190 -4.79


ToTAl 52157 53027 -1.64

pUblIc-to-pUblIcSEPT ‘10 SEPT ‘09 % DIFF

Whangarei 1608 1676 -4.06

Auckland 13142 13169 -0.21

Hamilton 2983 2833 5.29

Thames 421 423 -0.47

Tauranga 1940 1862 4.19

Rotorua 625 712 -12.22

Gisborne 366 365 0.27

Napier 1309 1284 1.95

New Plymouth 950 976 -2.66

Wanganui 431 448 -3.79

Palmerston North 1521 1505 1.06

Masterton 330 362 -8.84

Wellington 2959 3069 -3.58

Nelson 849 860 -1.28

Blenheim 357 403 -11.41


Westport 99 94 5.32


Timaru 421 447 -5.82

Oamaru 163 163 0.00

Dunedin 1482 1494 -0.80


ToTAl 36853 37418 -1.51

secoNdHaNd car sales - september 2010


5000

4500

4000

3500

3000

2500

2000

1500

1000

OCT '09 NOV '09 DEC '09 JAN '10 FEB '10 MAR '10 APR '10 MAY '10 JUN '10 JUL '10 AUg '10 SEPT '10

industry statistics

Report prepared by Information Tools Ltd for the Motor Industry Association. Data is based on registration data as supplied by Land Transport New Zealand.

New passeNGer VeHIcle sales by marQUe (excl sUV) - september 2010

August ‘10 August ‘09 2010 YTD 2009 YTD Variance +/- %

Volume Share Volume Share Volume Share Volume Share MTH YTD

Alfa Romeo 11 0.2% 11 0.2% 84 0.3% 95 0.3% 0.0% -11.6%

Aston Martin 5 0.1% 0 0.0% 20 0.1% 6 0.0% - 233.3%

Audi 85 1.8% 67 1.5% 756 2.3% 575 1.8% 26.9% 31.5%

Bentley 3 0.1% 2 0.0% 11 0.0% 12 0.0% 50.0% -8.3%

BMW 73 1.5% 50 1.1% 620 1.9% 502 1.6% 46.0% 23.5%

Cadillac 0 0.0% 0 0.0% 0 0.0% 62 0.2% -

Chrysler 5 0.1% 13 0.3% 64 0.2% 85 0.3% -61.5% -24.7%

Citroen 14 0.3% 12 0.3% 113 0.3% 128 0.4% 16.7% -11.7%

Daihatsu 22 0.5% 19 0.4% 130 0.4% 261 0.8% 15.8% -50.2%

Dodge 37 0.8% 7 0.2% 174 0.5% 72 0.2% 428.6% 141.7%

Ferrari 0 0.0% 1 0.0% 13 0.0% 6 0.0% 116.7%

Fiat 10 0.2% 5 0.1% 66 0.2% 109 0.3% 100.0% -39.4%

Ford 750 15.5% 595 13.1% 4143 12.6% 4298 13.5% 26.1% -3.6%

Holden 373 7.7% 456 10.0% 3806 11.5% 3348 10.5% -18.2% 13.7%

Honda 166 3.4% 197 4.3% 1593 4.8% 2045 6.4% -15.7% -22.1%

Hyundai 252 5.2% 228 5.0% 2012 6.1% 2104 6.6% 10.5% -4.4%

Jaguar 4 0.1% 7 0.2% 59 0.2% 58 0.2% -42.9% 1.7%

Kia 139 2.9% 144 3.2% 993 3.0% 1119 3.5% -3.5% -11.3%

Lamborghini 0 0.0% 0 0.0% 4 0.0% 2 0.0% - 100.0%

Lexus 18 0.4% 18 0.4% 128 0.4% 129 0.4% 0.0% -0.8%

Lotus 0 0.0% 0 0.0% 0 0.0% 2 0.0% -

New VeHIcle market seGmeNtatIoN, last 12 moNtHs

Light Commercial

SUV

Passenger Cars


industry statistics

New passeNGer VeHIcle sales by marQUe (excl sUV) - september 2010

August ‘10 August ‘09 2010 YTD 2009 YTD Variance +/- %

Volume Share Volume Share Volume Share Volume Share MTH YTD

Maserati 0 0.0% 1 0.0% 12 0.0% 18 0.1% -33.3%

Mazda 410 8.5% 428 9.4% 3579 10.9% 3312 10.4% -4.2% 8.1%

Mercedes-Benz 62 1.3% 92 2.0% 517 1.6% 584 1.8% -32.6% -11.5%

Mini 18 0.4% 20 0.4% 184 0.6% 183 0.6% -10.0% 0.5%

Mitsubishi 134 2.8% 129 2.8% 890 2.7% 869 2.7% 3.9% 2.4%

Nissan 220 4.5% 172 3.8% 1623 4.9% 1329 4.2% 27.9% 22.1%

Peugeot 67 1.4% 51 1.1% 395 1.2% 517 1.6% 31.4% -23.6%

Porsche 7 0.1% 6 0.1% 59 0.2% 48 0.2% 16.7% 22.9%

Renault 2 0.0% 0 0.0% 12 0.0% 21 0.1% - -42.9%

Saab 0 0.0% 0 0.0% 0 0.0% 17 0.1% -

Skoda 31 0.6% 10 0.2% 184 0.6% 212 0.7% 210.0% -13.2%

Smart 0 0.0% 1 0.0% 19 0.1% 7 0.0% 171.4%

Ssangyong 1 0.0% 0 0.0% 8 0.0% 1 0.0% - 700.0%

Subaru 93 1.9% 53 1.2% 644 2.0% 487 1.5% 75.5% 32.2%

Suzuki 345 7.1% 314 6.9% 3016 9.1% 2396 7.5% 9.9% 25.9%

Toyota 1282 26.4% 1277 28.1% 5628 17.1% 5765 18.1% 0.4% -2.4%

Volkswagen 207 4.3% 139 3.1% 1342 4.1% 1063 3.3% 48.9% 26.2%

Volvo 0 0.0% 13 0.3% 21 0.1% 59 0.2% -64.4%

Other 4 0.1% 6 0.1% 50 0.2% 12 0.0% -33.3% 316.7%

Total Passenger 4,850 100.0% 4,544 100.0% 32,972 100.0% 31,918 100.0% 6.7% 3.3%

New VeHIcle market seGmeNtatIoN - september 2010

Volumes Variance +/- Vol. & % Percentage Mix

Sep ‘10 Sep ‘09 2010 YTD 2009 YTD Sep ‘10 Sep ‘09 2010 YTD 2009 YTD Sep ‘10 Sep ‘09 2010 YTD 2009 YTD

Passenger 4,850 4,544 32,972 31,918 306 1,054 6.7 3.3 61.0 64.5 55.2 61.0

SUV 1,405 1,043 12,515 8,239 362 4,276 34.7 51.9 17.7 14.8 20.9 15.7

Light Commercial 1,399 1,251 12,588 10,270 148 2,318 11.8 22.6 17.6 17.8 21.1 19.6

Heavy Commercial 213 185 1,376 1,731 28 -355 15.1 -20.5 2.7 2.6 2.3 3.3

Other 78 17 319 183 61 136 358.8 74.3 1.0 0.2 0.5 0.3

Total Market 7,945 7,040 59,770 52,341 905 7,429 12.9 14.2 100.0 100.0 100.0 100.0Volumes Variance +/- Vol. & % Percentage Mix

Sep ‘10 Sep ‘09 2010 YTD 2009 YTD Sep ‘10 Sep ‘09 2010 YTD 2009 YTD Sep ‘10 Sep ‘09 2010 YTD 2009 YTD

Light 1,110 1,069 7,738 8,147 41 -409 3.8 -5.0 14.0 15.2 12.9 15.6

Small 1,982 1,710 12,499 11,934 272 565 15.9 4.7 24.9 24.3 20.9 22.8

Medium 1,008 869 6,635 5,785 139 850 16.0 14.7 12.7 12.3 11.1 11.1

Large 581 784 4,752 4,995 -203 -243 -25.9 -4.9 7.3 11.1 8.0 9.5

Upper Large 10 13 95 143 -3 -48 -23.1 -33.6 0.1 0.2 0.2 0.3

People Movers 59 38 423 315 21 108 55.3 34.3 0.7 0.5 0.7 0.6

Sports 100 61 830 599 39 231 63.9 38.6 1.3 0.9 1.4 1.1

SUV Compact 664 468 5,887 3,844 196 2,043 41.9 53.1 8.4 6.6 9.8 7.3

SUV Medium 563 427 5,062 3,131 136 1,931 31.9 61.7 7.1 6.1 8.5 6.0

SUV Large 50 32 413 299 18 114 56.3 38.1 0.6 0.5 0.7 0.6

SUV Luxury 128 116 1,153 965 12 188 10.3 19.5 1.6 1.6 1.9 1.8

Light Buses 26 10 164 126 16 38 160.0 30.2 0.3 0.1 0.3 0.2

Vans 428 399 3,169 2,978 29 191 7.3 6.4 5.4 5.7 5.3 5.7

Pick Up/Chassis Cab 4x2 380 315 3,353 2,797 65 556 20.6 19.9 4.8 4.5 5.6 5.3

Pick Up/Chassis Cab 4x4 561 525 5,864 4,350 36 1,514 6.9 34.8 7.1 7.5 9.8 8.3

Trucks 2.5-3.5 GVM 4 2 38 19 2 19 100.0 100.0 0.1 0.0 0.1 0.0

Heavy Commercial 213 185 1,376 1,731 28 -355 15.1 -20.5 2.7 2.6 2.3 3.3

Other 78 17 319 183 61 136 358.8 74.3 1.0 0.2 0.5 0.3

Total Market 7,945 7,040 59,770 52,341 905 7,429 12.9 14.2 100.0 100.0 100.0 100.0


peTrol-eleCTrIC hyBrIds took the major prizes in this month’s AA Energywise Rally which traversed a 1763-kilometre course from Auckland to Wellington and back.

Honda retained top honours, taking the Supreme Award for the car that cost the least to complete the distance.

A new-to-New Zealand Insight S Hybrid, one of several entered by Honda New Zealand in the Compact class, cost $147.83 to complete the event.

Honda employees, Ronnie Cheung and Erin Kelly, drove the winning car.

Honda’s Civic Hybrid won the last Energywise rally, run two years ago.

The event’s formula takes into account the cost of filling a fuel tank and factors in road user charges for diesel-powered vehicles.

Another hybrid, Toyota’s Prius, won the Environmental Award, for the car that completed the distance with the lowest overall CO2 emissions. It emitted 102.11 grams of CO2 per kilometre.

Rally driver Emma Gilmour, co-driven by Donald Holder and Stan Tucker, took the Driver Award, for the team that achieved the greatest percentage improvement on the manufacturer’s fuel consumption figure.

Driving a high-performance Subaru WRX STi, a car seldom thought of as being easy on fuel, they beat the manufacturer’s figure by almost 23 percent. The STi recorded 8.118 litres/100km, 22.69 percent better than its claimed economy figure.

Another Subaru was runner-up, a Legacy sedan with a CVT transmission. Driven by Subaru

NZ’s business development manager Peter Douglas-Bell and his wife Rachel, it bettered its claimed economy figure by 22.08 percent, recording 6.545 litre/100kms.

Subarus took first, second, fourth and fifth places in the category for improving on ADR-tested economy figures, bettering them by 18.66 percent on average.

The Insight also won the Compact class for Honda, with the brand’s 1.3-litre Jazz hatchback taking out the Small car class.

The best-performing Medium category car was the Toyota Camry Hybrid, with the diesel-engined BMW 520d SE Sedan winning the Large car class.

The Mitsubishi ASX Sport 1.8L 4WD Diesel won the Small Lifestyle category, with Subaru’s Subaru Outback 2.0D Euro Spec SUV triumphing in the Large Lifestyle section.

The Outback bettered all the cars in the small lifestyle class, the Large Car class beating a number of 2WD vehicles, four 2WD cars in the medium class, and four cars in the compact class. Its fuel consumption for the four days was 5.117 litres/100km.

It was the most environmentally friendly 4WD, producing just 133.29 grams of CO2 per kilometre.

Motoring writers Colin Smith and Dave Leggett and Subaru’s marketing manager Chris van Zonneveld shared the driving.

Best-performing petrol-engined car was the Suzuki Alto which also won the Micro car section in which it was the only entry.

Economy driving expert, Donn Anderson, co-driven by his wife Lynne, averaged 4.466 litres/100km in the three-cylinder, 996cc Alto. That was seven percent ahead of its manufacturer’s target fuel consumption of 4.8 litres/100km. On the final day, from Rotorua to Auckland via Tauranga, the Alto consumed only 3.966 litres/100km.

The Alto’s fuel cost for the event was $153.45 – $5.62 more than the overall winner.

The Alto was also judged the lowest emission petrol or diesel car in the event, producing 103.88 grams of CO2 per kilometre. That compared with 102.11 grams of CO2 per kilometre for the Environmental category-winning Toyota Prius hybrid.

Best diesel was the Mini Cooper d, the Toyota Prius won the Hybrid category and the Volkswagen Transporter TDi, another sole entry, won the Commercial Vehicle class.

Forty-nine vehicles contested the 2010 AA Energywise Rally which was organised jointly by the AA, the Energy Efficiency and Conservation Authority (EECA), and Gull Petroleum New Zealand.

Detailed results of the 2010 AA Energywise Rally can be found on the internet at aaenergywiserally.org.nz.

Honda Hybrid wins fuel economy rally

Subaru Outback 2.0 Diesel

Suzuki Alto


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