Association welcomes review of certification

The trusted voice of the auto industry for more than 25 yearsIssue 19-2015

21 October 2015

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Volkswagen New Zealand has confirmed about 1,000 more of its vehicles on Kiwi

roads are affected by the global diesel-engine emissions scandal.

It says seven per cent of around 75,000 units in this country are now caught up in the “software discrepancy”.

Autofile previously reported 4,639 units fitted with 1.6 and two-litre

four-cylinder TDi powerplants were known to be affected by October 7.

In an update issued on October 12, Volkswagen NZ confirms the total number of vehicles, which will have to be recalled for remedial action, now stands at 5,548.

It says the software in question “causes discrepancies in values for oxides of nitrogen [NOx] during emission testing in

their type EA189 engines”. The affected models have

been fitted with so-called defeat devices with about 11 million units affected worldwide.

“The operation of affected vehicles is not impaired and they can be used as usual without restrictions,” says Tom Ruddenklau, general manager of Volkswagen NZ.

[continued on page 4]

[continued on page 8]

A report into the review of New Zealand’s low-volume vehicle (LVV) certification

system is expected to be released next month.

The investigation has been initiated by the NZTA and undertaken by Standards NZ.

Craig Foss, the Associate Minister for Transport, has welcomed the review for vehicles built from scratch or modified for specialised purposes.

“The LVV certification process is about ensuring these vehicles are safe to be on the road,” he says.

The review started in July with a scoping phase. This involved

working with the automotive industry, certifiers and others to better understand the strengths of the current system and potential improvements.

“Standards NZ brings an independent perspective to this review,” adds Foss, who is pleased it has sought feedback from a wide range of people.

“I’m keen to ensure our LVV certification system enables innovators to utilise new technologies and create opportunities.”

The government requires all vehicles to meet safety

requirements. Once one is modified from its original state or scratch-built, there needs to be a method of ensuring continued compliance.

The LVV system aims to ensure all modified production vehicles – whether altered for commercial, passenger, disability, recreational, leisure, sporting or compliance purposes – and those that are scratch-built are safe to be on the road.

They also need to comply as closely as practicable with legal safety requirements applicable to mass-produced vehicles.

The process is overseen by the

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editor’s note

Taking trip down memory laneMany column inches have

been filled around the world on the Volkswagen

Group’s emissions-cheating scandal.Amidst everything that has

come to light is something remarkable – and that’s the company blaming a few engineers for installing defeat devices without their bosses’ knowledge.

With Volkswagen announcing some 11 million vehicles will have to be recalled globally, it has joined the industry’s hall of shame of the past three decades. Here are some of the lowlights.

At least 27 people died in the 1970s due to fuel tanks in the Ford Pinto being installed in the wrong place. In some cases, they exploded after rear-end collisions. More than 1.5m units were called back.

About 6.5m Firestone tyres were recalled in 2000 because they could shred or blow out. Most were fitted on Ford SUVs and pick-up trucks. In 2001, the authorities received 271 reports of deaths and 800 injuries connected to them.

Toyota paid US$1.2 billion – or about NZ$1.8b – in a settlement in 2014 after admitting it hid information about defects that caused its and Lexus’ vehicles to accelerate unexpectedly. The company called back around 10m units from 2009 onwards for several issues, such as faulty brakes, sticky gas pedals and problematic floor mats.

Faulty ignitions made by General Motors (GM) have been linked to at least 169 deaths. The switches could slip out of their run positions and turn off engines while driving. It recently agreed to pay about US$900m to settle an investigation. GM admitted some employees knew about the problem for around a decade, but cars equipped with the switches were only recalled last year.

According to the latest global estimates, almost 60m vehicles have been recalled because of faults in Takata airbags, which need replacing. They can inflate too quickly and explode, sending metal shrapnel into drivers and passengers. The systems have been blamed for causing eight deaths and more than 100 injuries.

All of this is a far cry from when Chrysler’s Airflow was introduced in 1934. It was billed as one of the most aerodynamic cars ever built. Its radical streamlined design ensured it stood out from the crowd.

But GM was furious Chrysler – a much smaller marque – had manufactured a more advanced vehicle than it could. It took out newspaper adverts in retaliation, which claimed the Airflow had been plagiarised from a top-secret GM design, which never surfaced, and was a danger on the roads.

Chrysler responded by releasing a newsreel emphasising the Airflow’s advanced suspension by shooting out a tyre at high speed. The film also highlighted its use of safety glass by having a pitcher throw a baseball at it, rolling it over, and sending it down a 33-metre cliff before driving it away without so much as a shattered window.

The Airflow’s uni-body construction – a method still used today – was all steel when most cars used wood. It offered almost modern safety during an era when low-speed accidents were life-threatening.

However, GM’s smear campaign was successful. The company faced no sanction for its actions and Airflow was discontinued in 1937.

How times have changed. But one thing is sure and that’s the Volkswagen scandal is far from over with its wider implications being felt around the world.

Darren Risby, editor

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AdvErtising

Brian McCutcheon brian@autofile.co.nz 021 455 775

JournAlist & onlinE producEr

Cameron Carpenter cameron@autofile.co.nz

dEsignEr

Adrian Payne arpayne@gmail.com

Autofile magazine is also available online as a readable file or downloadable as a PDF. Subscriptions are available at Autofile Online – www.autofile.co.nz. Back copies are also available on the website.

Copyright: Published twice monthly by 4Media Ltd, PO Box 6222, Dunedin 9059.

All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of Autofile in print or digital format in whole or part without written permission, whether by copying or any other means, is strictly forbidden. All rights reserved.

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news

Feedback from survey ‘supportive’Low-Volume Vehicle Technical Association (LVVTA), which – among other things – creates standards to which these vehicles are inspected, provides training and support to the LVV certifiers, and produces LVV plates.

“The survey process has been completed and we understand the matter is now going back to the minister,” Tony Johnson, chief executive officer of the LVVTA, told Autofile.

“We expect to be informed of the results in the next few weeks. We have heard nothing official other than numbers involved in the survey, and that the feedback has been good and supportive of what the association does.”

Johnson believes the review’s outcome may provide opportunities to make further improvements to the system, which has been in operation since 1992.

[continued from page 1]

t

whether it wants the bar raised, left as it is or lowered, it needs to look into how the system is working and

provide feedback to the LVVTA.“The NZTA wants to ensure various

aspects of the LVV process are working well for everyone involved with it – that it is

responsive and relevant,

and technical requirements are

robust.”Johnson recognises the

system hasn’t been reviewed by the NZTA or its predecessors for some time, and it’s important the LVVTA understands what is expected of it with both parties’ thinking being clearly aligned.

“The association will continue

to take its responsibilities seriously, remain vigilant and do everything it can to allow enthusiasts and the industry to continue to modify and build vehicles within safe and sensible engineering parameters,” he says.

DEVELOPMENT OF SYSTEMThe LVV certification system has been developed over 25 years with the involvement of many technical experts.

A wide range of input has been necessary because of the level of complexity and diversity involved in certifying modified and scratch-built vehicles.

As an example, Johnson cites LVV Standard 45-60 for disability transportation systems, which was developed over eight years.

Its consultation process included nine draft documents, five industry working group meetings

He says the LVVTA has had a long and solid relationship with the NZTA and its predecessors going back to its initial development, which started in 1989.

Johnson adds it is healthy for the agency to periodically review systems operating in New Zealand, which include warrants and certificates of fitness, and heavy, repair and entry certification.

“Additionally, the LVVTA needs to have confidence that it’s providing the level of technical rigour and LVV-certifier performance oversight the NZTA requires,” he says.

“In order for the agency to know

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At a glanceThe LVVTA creates standards to

which vehicles are inspected. It also produces LVV plates, which numbered

6,643 in 2014.Based in Porirua, Wellington, it has eight

permanent staff and about 60 certifiers around the country. It also creates

information sheets, issues modification declarations, tests and issues alerts

for after-market parts, and has a technical advisory

committee.

www.autofile.co.nz 5

an easy path in the short term, but fails in the long term.”

Johnson says this has resulted in the heavily safety-focused standards developed by the LVVTA and co-signed by the NZTA over the past two-and-a-half decades.

For example, in 2006, the NZTA’s predecessor Land Transport New Zealand requested the association adopt an in-house auditing regime to

enable technical and administrative scrutiny to be applied to the documents provided by certifiers when they apply for LVV plates.

Three years later, an error-recording system was implemented to cover certifiers’ work following a request to do so by the NZTA.

Johnson is confident the agency will be pleased with what it learns

t and input from about 300 people in the disability sector.

These included modifiers, builders, importers, occupational therapists, health and medical specialists, users, engineers, the LVVTA’s technical committee and staff, and officials from four government agencies.

“It can be easily overlooked that the certification system does more than developing technical requirements and overviewing the inspection process,” says Johnson.

“The LVVTA applies resources into areas including product and component assessment, component testing, publicising safety problems and risks, and providing technical support to users and industry groups, including NZ Police’s serious crash unit.

“One of the association’s current projects is designing and constructing a cyclic test rig to assess the durability of critical after-market automotive components.”

He says the LVV certification system has been designed to be

news

[continued on page 6]

from reviewing the LVV system. “I have no doubt the NZTA will

find various systems and processes developed and implemented will not only meet but exceed what it has asked and expected of us.

“The system is generally recognised as world-leading – from the point of view of the regulator, and that of enthusiasts and industry users.

“The review should get some

thinking and discussion going. Any ideas or opportunities to build on what we have, and make it more user-friendly and relevant without compromising safety, is always welcomed.”

WORKING WITH AGENCYThe Imported Motor Vehicle Industry Association (IMVIA) has

flexible and evolve as trends change and new technologies emerge.

“That said, most of the public expects if people are allowed to modify vehicles that there’s a robust system to ensure the highest practical level of safety is incorporated,” says Johnson.

“Our experience shows many members of the modification industry do a good job. The quality

players in the industry don’t want to see others taking short cuts and putting people’s lives at risk.”

Continuous improvement is something the LVVTA has “genuinely strived for and has consistently achieved”.

“It’s better to have a system that demands a high level of safety than a weak system that may provide

“Quality players in the industry don’t want to see others taking short cuts and putting people’s lives at risk.” – Tony Johnson, LVVTA

ALL safety-related motor-vehicle requirements and national certification processes are governed by the Land Transport Vehicle Compliance Rule.

This states if any vehicle is classed as low volume due to origin or modifications then it must be certified according to the low-volume vehicle code.

This document has been agreed between the LVVTA and government, and sets out the legal framework on the treatment of modified vehicles.

The code is amended from time to time in consultation with and approved by the NZTA, while its standards are legally empowered.

The LVVTA’s technical advisory committee (TAC) provides expert direction on the certification system with an NZTA representative sitting on it.

The association’s approvals cover hobby-based builds through to component

approvals for manufacturers and importers in the automotive industry.

None waive legal requirements for a vehicle to be LVV-certified, but provide simplified processes.

Items passed by the LVVTA must be made and supplied as described on the certificate, which is approved by the TAC.

Any design variation has to be reassessed and passed or the original approval is void.

A type-approval application is used when a business or organisation wants to sell or supply a product or assembly that’s required to be individually assessed by the TAC.

Component applications have to be made to sell or supply products or assemblies that fail to meet one or more of the LVV technical requirements.

The design approval process is for scratch-built or substantially modified vehicles.

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news

Hyundai Motorsport has signed a

three-year contract with Hayden Paddon, which will see him contest all FIA World Rally Championship (WRC) rounds from 2016.

He will step up to a full-time role in January with co-driver John Kennard.

Paddon, pictured, made his WRC debut as a team driver in Sardinia in June 2014 and has had five top-five results this season.

“Hayden is consistent, quick

and determined, and has potential for more growth,” says Michel Nandan, team principal. “We want to support fresh, young talent.”

Paddon adds: “The team has helped me to develop and I have no doubt we will be

winning soon.”A three-time NZ Rally

champion, he contested six WRC rounds in 2014. He stepped up to a full campaign this year with the support of Hyundai and its dealer network.

made a submission on the review of the LVVTA and part of this has been to put forward issues raised by some members.

Malcolm Yorston, technical services and membership manager, says: “The LVVTA was set up in the 1990s and hasn’t really been reviewed since then, and it should have been to ensure everything is on track.

“There may be some fine-tuning and adjustments made to the LVV system to reduce any exposure the NZTA may have.”

The IMVIA is working with the agency in regards to regulations overhauled in the European Union (EU) about 18 months ago.

These rules provided national standards and guidelines to be adhered to for some vehicles to be imported into New Zealand.

“The UK, for example, has national type and single

vehicle approvals, and the changes affected secondary manufacturers,” explains Yorston.

“These are people or companies that, for example, take a station wagon and convert it into a hearse or adapt a van for use as a disability vehicle.

“These secondary manufacturers are now required to work with the original equipment manufacturer [OEM] to ensure they comply with OEM standards for systems and componentry.

“They also have to ensure everything is done correctly and still complies with the original certification and approval issued in an EU member state for that particular vehicle.”

These certifications are issued in

news[continued from page 5]

Imports affected by certificationEurope by designated inspection companies, such as the Vehicle Certification Agency in the UK, and TUV SUD, DEKRA and others on the EU’s mainland.

After approvals are authorised and signed off in this way, secondary manufacturers are

issued with compliance plates in addition to statutory plates obtained by OEMs.

“These vehicles, with the exception of campervans, still have to comply with LVV requirements in New Zealand and we feel this is inappropriate,” says Yorston.

“We now have a situation with these vehicles’ makers having to jump through hoops in Europe and then go through requirements in this country as well to get another plate here.

“The IMVIA is working with the NZTA on this matter and hopes to have a response soon on what will happen going forward, but this is something that needs to be sorted out.”

A similar situation exists when low-volume vehicles of this kind are imported from Japan.

“More research is needed into disability vehicles, for example,

coming in from that country to indicate if a product has been made in accordance with the OEM’s specifications,” says Yorston.

“If a vehicle is fitted by the OEM with a passenger seat that swings out for someone in a wheelchair to use that’s compliant with the OEM specifications and has a katashiki [TDN] number on the export certificate so it meets Japanese standards, then it should be accepted here.

“Some may have been remanufactured outside the OEM’s control. More research is needed on these to ensure the robustness of remanufacturing processes to assess if a case can be made for them to be permitted entry into New Zealand without further certification of modifications.”

The Motor Trade Association (MTA) says it enjoys a strong working relationship with the LVVTA.

It replied to the review’s online survey, and forwarded it to its committees and branches for their own responses.

“The MTA supports periodic reviews of all NZTA certification processes to ensure they are fit for purpose and continue to achieve the desired outcomes,” says Graeme Swan, sector specialist – repair. “We await the detailed findings and recommendations.”

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The problem occurs when the lever is pushed too hard, which causes a part in its mechanism to crack.

And Hyundai is recalling 27,700 Elantras and Sonatas in the US because salt damage may cause their front coil springs to fracture.

More Toyotas in New Zealand are being recalled as part of the

global Takata airbag fiasco with 7,340 vehicles being identified.

In May, the distributor in this country reported up to 40,000 vehicles were being called back as part of the marque’s worldwide safety campaign.

The additional models covered are the Yaris, Corolla, Avensis and Picnic. Owners will get letters from Toyota NZ with parts being made available and the airbags repaired.

The company says there have been no reported related incidents in this country or elsewhere because of the faults.

More than six million Toyotas have now been recalled across the world because of faulty Takata airbags.

The global total for all manufacturers is approaching 60 million with BMW, Daimler Trucks, Ferrari, Fiat Chrysler, Ford, General

Motors, Honda, Mazda, Mitsubishi, Nissan and Subaru also affected.

The National Highway Traffic Safety Administration has warned recalls in the US may spread to Mercedes-Benz, Jaguar, Land Rover, Suzuki, Tesla, Volvo Trucks, Volkswagen and Spartan Motors.

General Motors has uncovered a smaller number of its 2015 vehicles with faulty side-airbag inflators, which could rupture.

About 400 Chevrolet Equinox, Malibu and Camaro vehicles, as well as the Buick LaCrosse, Cadillac XTS and GMC Terrain are affected.

Also, more than 419,000 Kia Sorentos from 2011-13 have been recalled in North America and Canada because of defective gear-shift levers.

The marque says their transmissions can move out of park when the driver’s foot isn’t on the brake.

news

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Airbag call-backs blow outOff-roaders flagged Polaris is recalling about 53,000 RZR recreational off-road vehicles sold in New Zealand between July 2014 and August 2015.

Their fuel tanks’ vent lines can be misrouted and get pinched, which can cause the tanks to pressurise and leak.

There have so far been four reports of 900s with leaks and of two catching fire, and 25 leaks in

XP 1000s and XP4 1000s. Other RZR models being recalled include the S 900, 900 XC and 4 900.

Also, about 240 Can-Ams have been called back.

The 2015 and 2016 youth model TMDS 90TM and DS 90TMX sold nationwide from May to September 2015 are affected.

Their engines have fuel-filter problems that may cause them to break and leak. So far, there have been eight reports of such incidents at dealerships.

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8 www.autofile.co.nz

“Our most important task will be to win back the trust we have lost with our customers, partners, investors and the general public.

“We have initiated a critical review of all planned investments. Anything not absolutely necessary

will be cancelled or postponed. This will

not be a painless process.”

He says the company will have to fix the EA189

powerplants “in combination

with various transmissions and country-specific designs, so we don’t need three solutions but thousands”.

Meanwhile, a law firm in Wellington has opened a class action for the owners of vehicles hit by the scandal.

Edward Cox, litigation partner

at Gibson Sheat, says buyers of Volkswagens, Audis and Skodas should not be left out of pocket.

“We believe a group action is the best way for owners to hold Volkswagen to account over its actions,” he adds.

Although the German company is working on a remedy to remove emissions-cheating software from affected cars, he believes there are concerns this may reduce their power and fuel efficiency.

“Their reputation may be tainted due to no fault of the owners and this could lead to a reduction in their values,” says Cox.

Ruddenklau says the company will not comment on the law firm’s “solicitation” and on whether owners can ultimately expect compensation.

However, he acknowledges owners are free to seek help from wherever they want.

“They can come to us and our dealers,” he says. “However, if they want to get external advice, that’s fine.

“But I would like to think the way we operate as a distributor – by being open and honest and upfront – that their best course of action is to have a chat with us.”

A law firm in Auckland has also entered the fray by advising owners of vehicles produced by the Volkswagen Group to consider lawyers as the last resort, and instead follow due process to recover any losses they may suffer as a result of devaluations.

Henry Chellew, a partner at Stainton Chellew, says the first stop for affected motorists should

[continued from page 1]

Timescale issued for recallsThe marque is in the process

of contacting affected customers and informing them of the next steps. A vehicle identification number look-up is available online at www.volkswagen.co.nz.

“Volkswagen in Germany is working as quickly as possible to find a technical solution and, once that is known, customers will be informed of the action plan to remedy their vehicles,” adds Ruddenklau.

“While Volkswagen NZ did not know about the software discrepancy, we would like to apologise for what has happened.

“We value the trust our customers place in us and will be in contact with them as soon as a solution is identified. We continue to work with the NZTA to clarify used imports.”

Volkswagen-branded vehicles affected in New Zealand include 2,222 Tiguans, 1,433 Passats, 874 Amaroks, 702 Golfs and 312 Caddys. Recalls to fix them are expected to take much of next year.

About 1,600 Audis will probably have to be recalled, including A3, A4 and Q5 models, while Skoda’s include 535 Superbs, 497 Octavias, 267 Yetis and 29 Rapids.

The Volkswagen Group has welcomed a decision by the Federal Motor Transport Authority in Germany to implement a timetable and plan of measures by issuing call-backs, which “gives customers clarity with regard to the continued unrestricted use of the vehicles”.

It will recall about 8.5m units in Europe. Those in Germany, which total around 2.4m, may

start in January and “all cars should be in order by the end of 2016” after measures have first been presented to “the responsible authorities”.

Many vehicles will need software adjustments. Some may require mechanical fixes, such as new injectors or catalysers.

Solutions are being developed for each affected series and model year, and the company may

need to set up temporary specialist workshops to deal with more complex cases.

Matthias Müller, group chief executive officer, says: “Apart from the enormous financial damage, which it is still not possible to quantify, this is first and foremost a crisis of confidence.

t

news

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VoLkSwagENS bEINg caLLED backYEAR OF MANUFACTURE MODEL UNITS

2008-15 Tiguan 2.0 TDi 2,222

2008-15 Passat (B7). Excludes new B8 launched in May 2015 1,433

2011-12 Amarok two-litre TDI, 90kW & 120kW. Excludes current Amarok 132kW TDI 874

2009-13 Golf 1.6-litre TDi & and two-litre TDi. Excludes new Golf 7 launched in February 2013 702

2011-15 Caddy 1.6-litre TDi 312

2011 Polo 1.6-litre TDi 2

2013 Sharan two-litre TDi 2

2011 Touran two-litre TDi 1

Total units 5,548

source: www.volkswagen.co.nz – last updated, October 12

www.autofile.co.nz 9

be the dealer where they made their purchases.

“Ask your Volkswagen dealership how it intends to put it right,” he says. “If you have no joy, you could consider other remedies ahead of court action, which can be protracted and uncertain of success. In addition, it may prevent you from achieving a quicker result.

“The Disputes Tribunal can hear claims of up to $15,000. Lawyers are not allowed to represent parties or advocate on their behalf. It keeps out lawyers who tend to represent multi-national corporates, and it’s a low-cost and faster venue for resolution.”

Chellew adds a class action is an option, but the key element with this is to prove loss attributable to the emissions scandal.

“An identifiable loss requires the owner to be able to point to the issue and say ‘my vehicle was worth this sum, but as a result it is now only worth this’ while bearing in mind cars devalue quickly and,

therefore, damages may be limited.”He adds affected owners may

qualify for compensation under the Fair Trading Act (FTA) and, potentially, the Sale of Goods Act (SOGA).

“Under section nine of the FTA, there is no requirement for misleading conduct to be intentional, only that it occurred,” explains Chellew.

“Under the SOGA, goods must conform to their descriptions. If sales descriptions make reference to emissions output and those were false, we can say the vehicle doesn’t answer to its description.”

Sue Chetwin, chief executive of Consumer NZ, says buyers need to show under the Consumer Guarantees Act (CGA) they have been hurt financially.

“They could say Volkswagen has falsely advertised its vehicles meet emissions standards,” she adds. “However, to make a claim, they would need to demonstrate they have suffered damage or loss.”

Any fix to emissions software will constitute a repair and is likely to discharge the company’s CGA obligations.

Chetwin says: “The issue wouldn’t warrant rejection and for further redress customers will have to demonstrate they have suffered loss or damage.”

The Motor Trade Association (MTA), which operates a mediation system between car dealers and buyers, has not yet developed guidance for consumers on the issue.

It says because Volkswagen has

yet to define its fix, owners need to wait for the details of what the remedial work will be.

Until that process has been completed and the fix fully considered, the MTA says it is difficult to take a position.

The Imported Motor Vehicle Industry Association says it has received many inquiries from car

dealers and the public about the situation.

It has informed its members the issue relates only to diesel vehicles, while used petrol Volkswagen and Audi cars and SUVs being imported from Japan are unaffected.

The association adds dealers should explain to customers affected stock does not include Euro 4-compliant petrol vehicles.

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“We value the trust our customers place in us and will be in contact with them as soon as a solution is identified.” – Tom Ruddenklau, Volkswagen NZ

10 www.autofile.co.nz

Progress on radio spectrumsThe Imported Motor

Vehicle Industry Association (IMVIA)

says progress is being made to ensure intelligent transportation systems (ITS) will be compatible globally.

Kit Wilkerson, the association’s policy adviser and analyst, attended last month’s ITS World Congress in Bordeaux.

He told Autofile the industry is working hard to iron out any issues that may arise in the future.

One hot topic is the radio-spectrum frequencies to be used in different jurisdictions to enable signals to be transmitted between vehicles.

The authorities in Japan, Europe and the US are pushing for industry to utilise the 5.8-5.9 gigahertz (GHz) band range for ITS and other purposes, while Japan has also allocated 760MHz for ITS.

While in France, Wilkerson was able to discuss with some original equipment manufacturers (OEMs) about how any issues may be resolved, but stresses “this is still work in progress”.

He says attending the conference was successful in that

the IMVIA has made more contacts going forward on these matters.

“We can’t hazard a guess on how they will be resolved yet because there are too many variables and the technology is still being developed,” says Wilkerson.

“We are, however, in discussion with engineers and OEMs about the effects their designs will have.

“It is about working to influence proactively and reactively, including developing contacts for when these cars roll out so we understand the issues, and can negotiate with stakeholders overseas and in New Zealand.”

Part of the issue in this country is that the 700MHz band of radio spectrum is owned by telecommunications companies.

As a result, Wilkerson says it’s necessary for the automotive industry to talk to the likes of Spark, Vodafone and 2degrees because they own their frequencies.

“We don’t intend to get on the same frequency as them,” he says. “That’s not an option anyway because they own it and no one else has a right to broadcast on it.”

He adds attending the ITS World Congress was also successful because there were many stakeholders involved with everyone working on solutions.

“I spoke to an engineer from Toyota, which is one of the biggest drivers of this particular ITS technology in Japan,” says Wilkerson.

“Such technology is first going to be used in vehicle-to-vehicle communications, but probably as an optional extra and not integrated into the cars themselves.”

He also touched base with an engineer from Honda, who believes it’s unlikely his company will use the 760MHz band in the near future.

“In addition to 760MHz, Japanese manufacturers can utilise 5.8 and 5.9GHz, so hopefully most technology will be developed in that frequency as the US and Europe are doing.

“The benefit of utilising 5.8-5.9GHz is that those frequencies are not restricted in New Zealand.

“It appears that is what Honda intends at the moment, but it does reserve the right to expand technology into that area.

“For example, if Toyota is successful in what it does in the 760MHz band, then Honda may look into developing similar – and probably compatible – technology utilising that band.”

As for the bigger picture, Wilkerson is confident solutions will be found to future problems relating to radio-spectrum frequencies, and their effects on how ITS will work and how they are connected to vehicles.

“Of course, 5.8 and 5.9GHz is not an empty piece of spectrum either,” adds Wilkerson.

“It is the frequency on which most of our home and business wi-fi systems work, and amateur radio and even devices, such as cordless phones, operate.

“As more devices broadcast on this frequency, interference is inevitable and industries will compete for priority or control.

“This bandwidth crunch will be just as important as compatibility and incompatibility issues moving forward.”

Part of the exhibition area at the ITS World Congress in France

news

www.autofile.co.nz 11

news

Bidding war for finance companyoffer,” says Higgs.

His board views a fair value for MTF ordinary shares as $1.39 to $1.71 each.

“Accordingly, we note Turners’ offer of $1.15 is below the bottom of our range,” says Higgs.

“However, the board notes it is higher than the range in which MTF ordinary shares have been trading over the past 12 months, [which] has been in the range of 90 cents to $1.

“In the absence of other unconditional offers being likely, Turners’ offer presents an opportunity for dry shareholders, who no longer originate loans with MTF and who are looking to sell MTF shares in a timely manner at a price that hasn’t been attainable since the ordinary shares were issued in 2009.”

Higgs says it appears the main purpose of Heartland’s latest offer is “to limit acceptances Turners receives, so as to improve Heartland’s ability to make a successful full takeover offer at a later date”.

He adds there is “uncertainty” with Heartland’s offer. That includes whether an unconditional offer will be tabled, if MTF’s board will allow an acquisition above 10 per cent and if a required special resolution of ordinary shareholders is made.

Higgs notes Turners’ offer closed before any unconditional offer could be made by Heartland.

“The board considers the Heartland proposal, on its own, doesn’t provide sufficient cause to recommend to shareholders who would otherwise accept Turners’ offer not to do so.”

Visit www.autofile.co.nz for an edited version of Higgs’ full statement to the NZX.

Heartland New Zealand has trumped an offer from Turners Ltd to buy shares

in Motor Trade Finances (MTF).The company is interested

in buying 10-20 per cent of the Dunedin-based financier’s shares at $1.50 each subject to completing due diligence satisfactory to it.

Turners’ unconditional offer comes in $1.15 with it prepared to receive acceptances to take its holding up to just under 20 per cent of MTF’s ordinary shares.

Heartland notes MTF shareholders who made acceptances on Turners’ offer, which closed on October 17, have a cooling-off period to cancel them.

It says: “Heartland remains interested in an acquisition of all MTF shares subject to more fulsome due diligence and reaching agreement with the board on a process.

“An initial cornerstone acquisition

demonstrates Heartland’s commitment to making a full takeover.

“It would also provide a platform to enable Heartland to offer its broader range of finance products – including insurance, operating lease, plant and equipment, livestock, marine and unsecured personal finance products – through MTF’s originating shareholders.”

Stephen Higgs, chairman of MTF, welcomes interest shown by Turners, which has been a shareholder since 2004 and provides about 10-20 per cent of its monthly sales volume.

He notes Turners is considering making offers to take over run-off ledgers from non-originating shareholders.

“The MTF board will not agree to such transfers as part of Turners’

Jeff Greenslade, chief executive officer of Heartland NZ

Auckland City BMW is New Zealand’s premier BMW dealer; our dealership has been completely transformed and we are the fi rst dealer in New Zealand to offer our customers BMW’s high tech “Future Retail’ environment.

We have an incredible opportunity for an exceptional Sales Manager to join the New Vehicle team.

You are a natural leader with a history of success in the motor vehicle industry, and will be at the very top of your fi eld.

To be considered for this key leadership role you must be able to demonstrate the following:

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Above all else you need passion, drive and a desire to deliver above benchmark results.

This is a senior role and we are offering an extremely generous remuneration package

backed up with excellent sales processes and support, you will also participate in local and overseas product and personal development training by BMW.

Opportunities such as these are extremely rare. If you feel that you have the skills to drive the business forward then please send your confi dential application to: careers@aucklandcitybmw.com

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The UltimateDriving Machine

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12 www.autofile.co.nz

technology

Advanced systems being developedToyota is planning to invest

about NZ$74.5 million over the next five years

in researching and developing intelligent vehicle and mobility technologies.

The company is teaming up with two universities in California and establishing joint research centres.

It describes opportunities to improve daily living through artificial intelligence supported technologies as “boundless” with the potential to develop life-saving vehicles.

“We will initially focus on accelerating technology with the goal of helping eliminate traffic casualties, and improving quality of life through enhanced mobility and robotics,” says Kiyotaka Ise, chief officer of Toyota’s research and development group.

Combined research will be targeted at improving the ability of intelligent transportation systems to recognise objects around

cars, provide better judgement of surrounding conditions, and collaborate with vehicle occupants, other vehicles and pedestrians.

Applications of the same technology to human-interactive robotics and information services will also be researched.

Beyond Toyota’s work on autonomous vehicles and advanced systems to support motorists, the company has been developing robots

for industrial use since the 1970s.The news comes with the marque

aiming to retail self-driving cars in Japan by the 2020 Tokyo Olympics.

It recently tested a modified Lexus GS on the city’s expressway. It drove itself within the 60kph limit for about 10 minutes and completed automated moves, including merging, changing lanes and keeping “inter-vehicular distance”.

It uses multiple external sensors to recognise cars and hazards before automatically operating the steering wheel, accelerator and brakes.

Currently, the vehicle can only operate on main roads with straightforward driving conditions. Visit www.autofile.co.nz to find out more about the car.

PROVIDING SIXTH SENSEAudi’s pre-sense safety system is now available in some of its models.

The standard version intervenes after detecting unstable driving situations via electronic stability control sensors.

The front seat belts are electrically tensioned, and sunroof and side windows closed to leave a small gap, while hazard warning lights come on to warn motorists behind.

The pre-sense front version is available with stop and go. It is intended to prevent rear-end collisions or at least reduce their outcomes.

An integrated braking guard is activated in dangerous situations to warn the driver. At the same time, the braking system is prefilled and optional adaptive air-suspension dampers are set to hard.

If the motorist fails to react,

the system briefly brakes with a jolt serving as the second warning with belts slightly pre-tensioned. If the driver depresses the pedal, hydraulic brake-assist increases power as appropriate.

Should the warning jolt be ignored, autonomous partial braking is initiated if vehicle ahead is moving. The windows and sunroof will be closed, belts tensioned considerably and hazard lights activated.

Audi’s pre-sense plus has two extra stages for emergencies. The system increases deceleration and tighten belts completely. The final phase – autonomous full-brake application – occurs about half a second before an inevitable crash.

Another sub-function, pre-sense rear, is coupled with side assist. If it detects an imminent rear-end collision, it uses adaptive brake lights to warn traffic.

MARQUE TO ACCEPT LIABILITYVolvo is the first vehicle manufacturer to promise it will take full responsibility for accidents involving its self-driving vehicles.

Hakan Samuelsson, chief executive officer of Volvo Cars, says it “will accept liability whenever one of its cars is in autonomous mode”.

There is much debate on the issue of responsibility with self-driving cars, especially with multiple companies pushing into this technology.

While Google’s self-driving vehicles have been involved in accidents on public roads, people in other cars have been to blame.

Nissan has plans to put an automated vehicle on Japan’s roads next year, while Tesla is “almost ready” to take its vehicle driverless on main roads and parallel park. Apple and Uber also want to develop autonomous cars.

Volvo adds it will regard the hacking of autonomous vehicles as a criminal offence.

“We are evolving software to counter risks associated with this,” says Samuelsson, who believes the introduction of self-driving cars will happen more quickly than many lawmakers anticipate.

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Kiyotaka Ise announcing Toyota’s investment in intelligent transportation systems

www.autofile.co.nz 13

news

BlackwellsMazda General Manager

Blackwells Mazda is on the move, with a brand new dealership currently under construction on a prime central Christchurch city site.We now require a dedicated Mazda General Manager to drive all facets of Mazda's growth in the buoyant Canterbury market.Blackwells Mazda is part of the dynamic Oakwood Motor Group, a successful family-owned business employing over 300 staff, while Mazda is NZ's fastest growing volume franchise, with an outstanding range of exceptional new vehicles.The General Manager will facilitate further business expansion in line with Mazda's performance standards and nurture a culture of excellence, teamwork, accountability and outstanding customer service.Motor industry management experience is a pre-requisite, preferably with a proven record in vehicle sales.This is a hands-on position leading a talented team of departmental managers, with the unique opportunity to shape the future direction of the Mazda brand in Canterbury from our new dealership.

Please apply in strictest confidence to:Steve Grenfell Blackwell Motors CEOemail: stevegrenfell@blackwells.co.nz

Since 1923

Buyers are ‘spoiled for choice’

past 12 months a wider range of vehicles has been launched,” says Stella Stocks, the AA’s general manager of motoring.

“This means while the SUV segment continues to grow strongly, it’s getting a real run for its money in the accolade stakes.

“The real standout with all of these vehicles is the quality they bring to the market across the range. Consumers are becoming spoiled for choice with new cars regardless of price points.”

On Mazda having three models

into the final 10, Stocks says: “That one brand is so strongly represented shows it knows how to impress and is targeting a range of markets well.”

While not yet mainstream, BMW’s electric i3 was described by the selection panel as a “real game-changer” with Stocks saying people should expect to see more of these types of vehicles across classes in future awards finals.

As for the Mondeo and Legacy/Outback, she says they come from the same category but

take different approaches in the medium-large car segment.

Alongside the overall winner, there will be best in class for small, compact, medium-large and luxury car, small/crossover, medium, large and luxury SUV, ute, and sports and performance, while the safest vehicle will be based on ANCAP crash-test results.

The public will have a chance to vote for one of the finalists for the people’s choice award from November 1 on the AA’s Facebook page and website.

The sports utility vehicle (SUV) segment faces plenty of

competition in this year’s New Zealand Car of the Year awards.

Although SUVs account for six of the 10 finalists, 2015’s line-up is broader than last year’s with one marque accounting for three of the berths.

The finalists are the Audi Q7, BMW i3, Ford Mondeo, Hyundai Tucson, Land Rover Discovery Sport, Mazda 2, CX-3 and MX-5, Subaru Legacy/Outback and Volvo XC90.

The AA and NZ Motoring Writers’ Guild will announce the winner at Auckland’s Viaduct Events Centre on December 9.

“Last year’s top 10 was dominated by SUVs, but over the

The Mazda 2, CX-3 and MX-5 are NZ Car of the Year finalists

14 www.autofile.co.nz

Mitsubishi says its new electric car turns conventional thinking

on its head.The Outlander plug-in hybrid

electric vehicle (PHEV), which can be charged from a mains socket, has three driving modes.

EV mode is all-wheel electric drive with an overnight charge providing a range of 52km.

While electric motors still power the car in series hybrid mode, the petrol engine is ready to generate electricity to top up the drive batteries when accelerating hard or climbing a hill.

In parallel hybrid mode, the 91-octane MIVEC petrol engine takes over at higher speeds.

Daniel Cook, head of sales and marketing, describes “range anxiety” as a thing of the past.

“Typically, a focus on power can tend to sacrifice economy

and vice-versa,” he says. “Not in this case. The electric motor’s 332Nm of torque and V6-style power have positioned the PHEV as the performance car of the Outlander range.

“The two-litre engine is constantly ready to generate electricity or add extra power when needed.”

Harvesting electrical energy through regenerative braking is a big feature with the PHEV, while

dash-mounted displays help the driver keep track of real-time energy levels.

Braking is improved by adding two-pot front brake callipers. Other additions are energy-saving LED headlamps, daytime running lamps and tail-lights, and 18-inch machine-finished alloys.

Inside, the marque has added soft-feel leather seats in the VRX model and front-seat heating.

A key safety feature is the new mis-acceleration prevention system. If the driver accidentally stamps on the gas pedal instead of the brake while moving forwards or backwards, a device senses if there’s something in the way and disables the throttle.

The XLS variant of the PHEV starts at $59,990 and the VRX costs from $66,990, plus on-road costs. They are available now.

new cars

The Ignis five-door hatchback is among 22 vehicles being displayed by

Suzuki at Tokyo Motor Show, which opens on October 29.

Its stand at the event will be called Suzuki Next 100 as a precursor to its centenary being celebrated in 2020.

Based on the iM-4 concept shown in Geneva earlier this year, the Ignis has bold styling for a small car.

It boasts prominently flared wheel-arch moldings, a full-width grille with encapsulated headlights, clam-shell shaped bonnet and projector headlights.

The Ignis has generous ground

clearance and distinctive looks that give it unique character. Its futuristic interior includes a bold dashboard and a central tablet-style display for the infotainment system.

Like the all-new Vitara, which recently launched in New Zealand, it has colour panels that can be inserted for the dashboard.

The Ignis’ name revives one Suzuki used for the hatchback that ended production in 2008, but the latest creation bears no resemblance to the original.

Recent testing of the new model has been completed in the Swiss Alps with production slated to start in the second half of next year.

Quirky yet practical

Three driving modes for plug-in

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Personal: Everything will be customised for the consumer. Generic advertising and marketing will become ineffective and catalogue websites less popular.Predictive: Technology will know what customers want and sometimes before they know it themselves. Products will find their buyers and the concept of searching for things will become the exception not the rule.Automation: This trend is obvious, but we expect it to become more aggressive. We will become comfortable dealing with automated devices for everything.Embedded: Computers and technology will be everywhere, so much so that you’ll stop noticing it. Computers will get smaller and into almost all objects, and will communicate with each other.Experience: The focus on consumer experience will be the battlefield of customer-facing businesses. Making things simple and convenient while ensuring

www.motorcentral.co.nz0800 623 687

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

Keeping pace with technologyIs our industry ready to be

disrupted? With the continuing evolution of technology, this

is being faced by many these days. It’s becoming obvious to most, if not all, that it’s not a matter of “if” but more determining “when”.

The reality for the vehicle industry is that it will not be excluded from major disruption, so it’s important we understand where things are likely to change and how we may combat them.

Consumers are also evolving. Every year, the gap continues to widen between their expectations and what experiences are delivered by dealerships.

Some are keeping pace. However, I am noticing an upward trend in those struggling to deliver – or keep up with – customers’ expectations.

Everyone is becoming more time-poor. Not only do consumers want relevant experiences, dealerships are crying out for efficiencies and process improvements to get the best returns on investment in staff and initiatives.

Companies in our industry will continue to be successful as long as they continue to keep pace with expectations and technological advancements.

Those standing still and doing business as they always have will awake one morning wondering where their customers have gone.

The future is exciting, but it will pose a dangerous situation for those with a lack of vision.

I see the following trends playing big roles in how technology will dominate the future.

they are happy will take up your working day. Computers will do everything else.Integration: Industry players will join their systems together, so isolated pieces of information become part of a living fabric.

Systems will leverage this and feed it into all operations they perform.Data: This is moving to the cloud where it’s accessible in ways never before possible and in volumes beyond our wildest dreams. Today, data is mostly presented as statistics, patterns and insights in reports. In the future, the norm will be for computers to make observations, detect trends and make predictions, and finally make suggestions or even decisions.

Funnily enough, the technology required to do things such as this has been around for at least 20 years, so why hasn’t it happened yet?

The technology required was too expensive – mainly the cost of storing large amounts of data. The

internet’s slow speed was a barrier. People weren’t dependent on the web and didn’t understand it, which meant they didn’t trust it.

Only in the past 10 years have these barriers started to come down with most progress occurring in the past 36 months.

It’s important we continue to question how things can be completed more efficiently and effectively to make businesses better.

Motorcentral intends to be at the forefront of this battleground as a technology provider and our approach will be to act as a leading disruptor.

We will be challenging the way things have always been done with innovation and development – most importantly, in line with consumer and business needs.

We’ve been working hard over the past few years to integrate with a large number of players and service providers to connect various parts of the industry.

As this continues, we hope automation will be allowed to begin to play a wider role to create a more streamlined and smarter industry.

So back to my original question: Is the motor industry ready to be disrupted? I believe so now more than ever and challenge you to think how you will be selling your cars in five years’ time. What advancements will we have made and what will consumers’ expectations be?

We hope to be a part of that vision, drive and foundation needed to deliver this future. Our products and services will continue to evolve until we reach and exceed these expectations.

MARK GREENFIELD Motorcentral

Storing large amounts of data has been expensive in the past

16 www.autofile.co.nz

Nelson has experienced dramatic population growth in recent years as

the largest urban centre at the top of the South Island, and now faces the challenge of sustainability and stability across all sectors.

The city has 46,437 residents and its regional population comes in at 93,951 meaning 2.21 per cent of the nation’s population lives there, and it’s growing at a rate of about five per cent a year.

ANZ’s regional trends economic report for Nelson Marlborough published in late August describes the area’s growth in the prior quarter as “flat” and “subdued”.

However, local businesses and – in particular – car dealers are positive about the coming quarter, which they say is traditionally buoyant for trade.

With a major port, booming tourism industry, and strong agricultural, fishing, forestry and horticultural sectors, the future looks bright for the region.

The key now is managing ample resources effectively as detailed in Nelson City Council’s long-term plan adopted in July 2015.

In the document, Mayor Rachel Reese outlines the need for more spending on infrastructure, protecting natural resources, and a focus on the central business district and its activities.

There is a strong emphasis on

Stability across economy essential

regional report

below the New Zealand average of 5.9 per cent, while regional exports have climbed by 9.7 per cent on the previous year.

Nelson Marlborough Institute of Technology offers about 80 courses, which range from aviation, engineering and information technology to business and tourism.

Meanwhile, the influx of residents experienced after Christchurch’s earthquakes has plateaued, but local businesses are benefiting from interest in lifestyle-and-house packages stemming from people based in other regions and even as far away as Auckland.

Sales of private residences, according to latest REINZ statistics, are up by 22 per cent from the previous year, and interest in high-end residential development is on the increase.

LOOKING AT THE NUMBERSStatistics on the automotive industry show that while new car and commercial sales dropped by 7.88 per cent and 6.55 per cent respectively over the past 12 months, those of used cars jumped by 16.97 per cent and by 15.33 per cent for used commercials.

Ryan Durry, managing director of Quay Cars in Nelson, says business has been good in the past quarter.

“Over the holiday period in October, things went very well,” he told Autofile. “It kind of took off.

“Commercials are popular, and the demographic of females wanting a utility vehicle that’s easy to drive and practical for a family of four is growing. Utes and commercials aren’t just for tradies anymore.”

Durry feels that despite the economic forecast for the region, business appears buoyant with

marketing potential for the region. This is associated not only with diverse outdoor activities on offer, but also a strong cultural and café scene.

There are some big employers in the area, such as Nelson Pine Industries, the New Zealand King

Salmon Company, Sealord and Talleys.

According to the national census in 2013, there were 5,622 businesses

with about 25,000 employees in Nelson, and 6,446 businesses with around 19,000 staff across Tasman.

The unemployment figure stands at 4.8 per cent, which is

t

Nelson vehicle sales - October 2014 to Sptember 2015

UsEd cArs NEw cArs UsEd commErciAls NEw commErciAls PUBlic To TrAdEr PUBlic To PUBlic TrAdEr To PUBlic

Oct ‘14 187 73 10 57 241 983 349

Nov ‘14 175 82 20 52 237 876 299

Dec ‘14 244 76 7 41 274 957 358

Jan ‘15 223 90 8 56 260 892 334

Feb ‘15 184 98 15 43 212 949 317

Mar ‘14 194 103 13 66 267 1,046 298

Apr ‘14 186 72 13 46 221 942 275

May ‘15 210 75 16 63 245 954 307

Jun ‘15 239 96 17 77 287 906 328

Jul ‘15 230 84 10 46 257 1,037 345

Aug ‘15 209 81 12 45 232 886 314

Sep ‘15 186 134 17 64 231 942 309

Total 12 months 2,467 1,064 158 656 2,964 11,370 3,833

Past 12 months NZ sales 142,248 94,008 8,720 38,469 155,326 493,868 207,972Nelson’s % of national sales 1.7% 1.1% 1.8% 1.7% 1.9% 2.3% 1.8%

Previous year sales Oct 13 - Sep 14 2,109 1,155 137 702 2,771 11,052 3,680

Units increase/decrease Oct 13 - Sep 14 358 -91 21 -46 193 318 153

% increase/decrease Oct 13 - Sep 14 17.0% -7.9% 15.3% -6.6% 7.0% 2.9% 4.2%

Population New Zealand 4,242,051 Nelson 93,951 2.2%

Construction of Nelson’s Christ Church Cathedral began in 1925 and took 40 years to complete

Abel Tasman National ParkLake Rotoiti from the pier at Saint Arnaud

www.autofile.co.nz 17

trade occurring out of town via online sales.

Shane Drummond, managing director of The Car Company, is experiencing steady sales, although he reports issues buying from Japan because of the kiwi’s cross-rate and market conditions there.

His business focus extends into the local community with sponsorship. He has a broader model with a workshop and finance company, so he can see who is buying, what needs fixing and what customers are paying for vehicles, while repeat and referral business are his cornerstones.

In terms of growth in the area, Drummond’s perception reflects the statistics for commercial building activity, which has dropped off from last year.

“We have people who were here five years ago and they say things have stayed the same,” he says.

“There aren’t a lot of major new projects going on at the moment. It’s an interesting scenario here because of that.”

A slightly higher-than-average ageing population at 17.5 per cent of the national average of 12.3 per cent has made a mark on the property market.

“There are a lot of financially stable elderly people who aren’t going anywhere and have the ability to spend in the upper bracket of housing,” says Drummond. “This becomes a little bit contagious when talking to people outside of town.

“Once you get a little bit of a taste of Nelson you tend to probably say ‘well, it’s not a bad place to live’.”

POSITIVES IN MIXED BAGAs for new vehicles, cars and commercial registrations have dropped over the past year, but September was the best month of the past 12 with 134 passenger

vehicles sold while last month was the third highest during that period for sales of commercials, which came in at 64.

Drummond, who is also SsangYong’s sales and service agent in Nelson, suggests a range of new vehicles has sprung people into action over the past few months.

“People seem keen on good-looking small cars that sit upright and are easy to get into,” he says. “Older people certainly like the access to these vehicles and we have a few older people in Nelson.”

Vern Walker is the dealer principal of Nelson Bays Motor Group. He reports little change in trade in the past quarter, although interest in commercial vehicles is growing.

“There is still reasonable activity in the commercial market and we’ve noticed a slight increase on those sales. It’s still very competitive.

Walker, who has lived in Nelson since birth, sees some challenges for the region in the long term.

“There are a lot of benefits for our area. Tourism is up off the back of a good summer last year and we are reliant on that. I see that as a positive.

“The challenges, though, can come from what happens globally because we are so reliant in this region, for example, on primary industries.

“We need to see good returns on our pip-fruit industry. We need all of our primary sectors to function.

“There are also some positives in big business being reported. From the King Salmon perspective, you read in the paper that as much as what it has processed has sold and it will be looking to expand, but its challenges are environmental.

“And with the fishing industry, we’ve just come off the back

of the hoki season, which was reasonably good.”

SEASONAL BOOST AHEADMoving forward, the influx of seasonal workers who arrive in the region from November until the end of the fruit-picking season in May will make a positive impact on the local economy.

Durry notes: “There is definitely an influx of people, especially seasonal workers who seek second-hand cars during the busy summer.”

And the inclusion of Nelson as one of Jetstar’s routes is a coup for the region as one of New Zealand’s most popular summer tourist destinations.

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regional report

“The demographic of females wanting a utility vehicle that’s easy to drive and practical for a family of four is growing.”

– Ryan Durry, Quay Cars

Quay Cars’ premises in NelsonThe Car Company in Nelson also has

branches in Tahunanui and Richmond

18 www.autofile.co.nz

NEws in brief Company launches programme to help refugeesDaimler will start offering work experience and German classes for refugees at its production plant in Stuttgart as part of a plan to qualify several hundred people seeking shelter in the country.

With an initial intake of 40 people for a 14-week programme, the company plans to extend its scope to other sites in Germany.

“Immigration is a real chance for Germany,” says Wilfried Porth, Daimler’s head of human resources. “With this work experience, we’re hoping to offer refugees an unbureaucratic way to employment.”

Germany expects at least 800,000 refugees to arrive this year as they flee war and poverty in countries such as Syria and Afghanistan.

Industry leaders have welcomed the influx of migrants to Europe’s largest economy, which is struggling to find qualified workers to fill jobs in its export-focused manufacturing sector.

Meet first woman to race in Kiwi championshipTiffany Chittenden will be the first female to contest the Toyota Finance 86 Series.

It will be her first full season of racing having previously represented Great Britain and New Zealand at the World Karting Championships.

Chittenden, pictured, forfeited her European licence to race for New Zealand at last year’s world championships in Spain. Her sixth place meant she was the highest-ranked Kiwi.

“I know a lot of the competition has more experience than I have,” she says. “Hopefully I can improve as the series goes on, get some podiums and get familiar with everything by round three at Ruapuna.”

The series starts with a support race at Pukekohe from November 6-8.

Korean marque celebrates after hitting milestoneKia Motors has broken through a global barrier by exporting its 15-millionth vehicle.

It was delivered to Dubai in the United Arab Emirates, which was significant as the first of the marque’s overseas exports were sent to the Middle East 40 years ago.

While the company took more than 36 years to achieve its first 10 million exports in 2011, rapid growth since then means it has taken less than four-and-a-half years to achieve the next five million.

Todd McDonald, general manager of Kia Motors NZ, says it’s an “astonishing achievement” because the most rapid growth coincided with the aftermath of the global financial collapse when “automotive sales generally around the world were still weak”.

Extension to racing deal sees stake in derby boostedBMW has extended its partnership with Auckland Racing Club, which will see the marque become naming-rights holder for the Group 1 New Zealand Derby on March 5.

The derby’s current stake will jump from $750,000 to $1 million in 2017 for the 141st running “of what many consider to be the country’s premier race” for three-year-old thoroughbreds.

Billions invested in driverless cars and technologyGeneral Motors is pushing into autonomous vehicles and ride-sharing services by slashing NZ$8.2 billion from its manufacturing, purchasing and administration budgets over the next three years.

It has also tested a fleet of self-driving Chevrolet Volt plug-in hybrids. Visit www.autofile.co.nz for the full story.

To adverTise here, conTacT:

Vehicles wanted

advertising@autofile.co.nz or ph 021 455 775

dealers Buying now

Contact Gareth 021660180 gareth@southcitymotors.co.nz www.317.co.nz

Buying: Vans, Utes, Light Trucks. Nationwide.

Audi, Volkswagen, Skoda ........................................................... Blair Woolford 021 0367706Hyundai .............................................................................................................. Heath Kendall 027 8552681Nissan and any other brand .................................................... Brett Harris 029 2931232Subaru, Chrysler, Jeep, Dodge, Fiat & Alfa ......... Warren Carter 021 863503

Farmer AutovillAge® We like cars.But we love drivers.

Vans, Utes, RV/SUVPhone Cory 027 203 5701

www.corporatecars.co.nz

EuropEan VEhiclEs WantEd

commErcial VEhiclEs WantEd

Audi, BMW, Mercedes, Porsche, Maserati, Jaguar and Land Rover

Phone Glenn 021 431 685

www.autofile.co.nz 19

miles motor groupPAUL CURIN 0274 333 303 pcurin@miles.co.nz

Mercedes BenzVolkswagen

Nissan Lexus

Kia

ToyotaChryslerJeep Dodge

VEHICLES WANTED

We are always looking to purchase late model NZ NEW CARS AND COMMERCIALS

new utes

Range boasts 21 models

New Zealand’s best-selling ute has been refreshed with an array of smart

technologies and bolder looks. Among the Ford Ranger’s new

features are SYNC2 connectivity, wi-fi hotspot, cooled centre console, dual-zone climate control and heated front seats.

Others include hill-launch assist, hill-descent and trailer-sway control, tyre-pressure monitoring, adaptive cruise control with forward-collision warning, and lane-keep assist

with lane-departure warning.On the outside, the ute boasts

a new grille. Its headlamps are mounted high up and are shaped to flow into the front mudguard and bush guard on the lower part of the bumper. There are recessed driving lamps and fresh wheel designs.

An electronically controlled transfer case allows drivers in four-wheel-drive (4WD) models to “shift on the fly” from 2WD thanks to a knob on the centre console.

Low-range four-by-four gearing can be engaged for low-speed

torque and extra downhill braking, while an electronic-locking rear differential helps to improve traction in difficult conditions.

These off-road strengths are matched by towing capability of up to 3,500kg, while the fine-tuned suspension provides more comfort and better handling.

Electric power-assisted steering (EPAS) provides precise control. The system means steering is light for low-speed manoeuvring, such as parking, and precise at higher speeds.

Assistance varies as needed based on speed, steering-wheel angle, cornering force, and

acceleration and deceleration. By eliminating the power-

steering pump used in traditional systems, EPAS results in a quieter vehicle and improves fuel efficiency by about three per cent.

The latest generation of Ford’s 3.2-litre Duratorq five-cylinder TDCi diesel engine powers the Ranger.

Producing 147kW of power and 470Nm of torque, it includes an updated exhaust-gas recirculation system and can be paired with a six-speed automatic transmission.

The new Rangers, which are available now, are priced between $36,040 and $69,640.

Best-seller receives makeover

Toyota has announced the prices for its all-new Hilux ahead of its launch on

December 1. The 21-model line-up starts

with the two-wheel-drive (2WD) cab chassis at $36,990 and climbs to the range-topping 4WD double-cab SR5 Limited at $70,490.

Five of the 2WD models have the same ground clearance and ride height as 4WD variants.

These “pre-runner” models – which are aimed at people who want 4WD ride height, but don’t need 4WD capability – are double-cabs with prices ranging from $44,990 to $54,990.

There are nine 2WD variants.

Four have automatic options to suit urban buyers, and cost between $36,990 and $54,990.

Twelve 4WD models complete the range – a segment of the ute market in which Toyota has been number one for the past 27 years. They retail from $51,990 to $70,490.

The marque’s new 2.8-litre diesel engine from the Land Cruiser Prado is fitted to 18 of the 21 variants, while a four-litre V6 petrol engine powers the remaining three.

Depending on the model, the diesel powerplant produces up to 450Nm of torque from 1,600-2,400rpm.

The Hilux SR5 double-cab

The Ford Ranger Wildtrak

20 www.autofile.co.nz

ThE numbEr of vAcAncIEs being created in New Zealand is slowing after a strong run, according to an analysis of more than 60,000 vacancies listed on Trade Me in the three months to September.

New roles listed rose by 1.2 per cent when compared to the same period of last year, while the average advertised salary fell by 2.6 per cent.

Peter Osborne, head of Trade Me Jobs, says the employment market has been hinting at a slowdown for several months.

“Economic indicators suggested the Kiwi market was cooling off this year with employers not hiring as often, but new listings remained strong on Trade Me in the face of a pessimistic outlook. Over the past three months, however, things have started to quieten.”

Job hunters in Auckland sent 17 per cent more applications in the 12 months to September when compared to 2014.

Osborne notes there has also been a noticeable lift in interest for roles outside this country’s largest city.

“Over the past year, 13 per cent of applications sent by Auckland candidates were for roles located outside the region.

“That was up by 47 per cent on the previous year, matching the pressure on the cost of living in New Zealand’s biggest city. This is reflected in the 81 per cent lift in applications for jobs in the Waikato by Aucklanders.”

Other areas notching up increases in applications from Aucklanders were Canterbury, where they rose by 45 per cent, and the Bay of Plenty, up by 32 per cent.

“On the other hand, we saw a 16 per cent lift in applications for Auckland roles when the candidate was based outside the Auckland region, so we will be

watching activity in this area with interest,” adds Osborne.

Roles advertised across the country were up by only 1.2 per cent in the quarter compared to the previous year, with the biggest lifts in the Bay of Plenty – up 22.6 per cent, Auckland – up 7.3 per cent and Hawke’s Bay – up 5.9 per cent.

“Despite job advert growth in Auckland, average advertised pay slid by four per cent to $71,546, so we may see flow-on effects in other areas of the economy if the slip turns into a longer-term trend.”

Regions showing the largest drops in advertised roles included Marlborough – down five per cent, Canterbury – down 6.2 per cent and Wellington – down 7.6 per cent.

Although the number of roles available in the capital has simmered,

it’s not all grim news as it topped the country’s highest average advertised rate of pay at $75,484.

Roles on offer in Canterbury dipped by six per cent, while the average number of applications jumped by 41 per cent.

The easing of the market in the Garden City was based mainly around rebuild work with listings in construction and architecture down by 27 per cent, and those in transport and logistics decreasing by 32 per cent.

Nationally, people looking for roles in construction and architecture, trades and services, and human resources and recruitment found more choice over the quarter with advertised roles up by 12.4, 14.7 and 16.4 per cent respectively.

Those in retail rose by five per cent, and in executive and general management by 19.5 per cent.

Decreases were seen in government and council by 13.8 per cent, engineering by 9.6 per cent, sales by 10.71 per cent, banking, finance and insurance by 1.4 per cent, and automotive by 0.6 per cent.

sEAn sTEvEn has been appointed as national manager of delivery for Vehicle Inspection New Zealand (VINZ).

He joins the company after eight years with new-vehicle importer Ateco Automotive where he held roles as national service manager, after-sales manager and group service manager across all of its brands.

nEIL WAKA has resigned as manager of corporate affairs at Holden New Zealand.

“He joined Holden in 2010 and worked hard at forging media relationships,” says Marnie Jane Samphier, general manager of marketing. “That will have a lasting benefit and for that we are grateful.”

Waka was formerly a news anchor with TV One and TV3. His career in broadcasting spanned 25 years after starting in radio as a news and current-affairs journalist.

brIAn sTonE has been appointed as national manager – commercial for VINZ.

Before taking on the role, he was the company’s business development manager for two years.

With more than two decades of experience in the automotive industry, the new position will see him focus on developing opportunities to grow existing and new business across VINZ’s network.

ToDD hunTEr, pictured, has been appointed into the new role of chief operating officer at Turners Ltd.

He has been with Turners Group NZ – previously Turners Auctions – for nine years. He was appointed chief executive officer in 2013 and will retain this role.

“Todd’s appointment is part of our succession planning to ensure we deliver organic growth and integration strategies,” says Paul Byrnes, Turners Ltd’s CEO. “It also allows for an appropriate amount of my time to be focused on merger and acquisition activity.”

WAYnE PErcIvAL has replaced Tessa Price as chief executive officer of UDC Finance.

He has worked in the financial services sector for more than 20 years. He previously headed the specialist distribution team for ANZ NZ’s retail and business banking division, and worked for UDC in a number of senior roles between 1993 and 2004.

Percival also spent four years with Esanda Fleet Partners in New Zealand and Esanda Finance in Australia. He returned to this country in 2008 as a district manager for the business banking division.

GEoff shorT has been appointed co-ordinator of the Toyota Finance 86 Series.

He will be responsible for attracting extra support for the competition and encouraging more drivers to take part.

“Toyota realised to get the series going properly it needed more support,” says Short. “My role is to make that happen.”

His plans for the series include a celebrity vehicle at each round and a scholarship car for a young driver subject to securing sponsorship.

industry movers

TO FEATURE IN INDUSTRY MOVERS EMAIL EDITOR@AUTOFILE.CO.NZ

NZ labour market report

Peter Osborne, head of Trade Me Jobs

www.autofile.co.nz 21

13%  

16%  

12%  

18%  

48%  

22%  

38%  39%  

45%  

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MBI Insurance GAP PPP Finance

PROTECTA nationwide F & I results September 2015

New Used

Best result: $ 1,137 Worst result: $ 329

f & i focus

There was a huge sense of relief when Ritchie McCaw’s men in black romped past

the French in Cardiff to make it into the world cup semi-final.

What a competition it has been so far with a number of memorable efforts, not least the brave blossoms of Japan.

A sense of relief is felt on a daily basis by some sales staff and business managers in our industry as they hold their breaths during the sign-up and delivery phases in the hope customers don’t ask too many questions about the documentation they are being asked to sign.

During our one-on-one or group Protecta coaching sessions around the country, we emphasise the need to disclose everything up front to avoid being exposed then or in the future when the customer re-reads his or her documents.

We have touched on the

requirements under responsible lending legislation in previous articles.

However, we need to reiterate the point and recommend all sales staff and business managers provide hard or electronic copies of any sales, and finance and insurance (F&I) documents, to each customer as far in advance of delivery as possible for the client to review and question if necessary.

This will avoid your staff being tripped up at the try line or during the delivery process, which should be a happy time for your staff member and the customer.

Gone are the days of the tie

covering the interest rate or not addressing the insurance premiums included in loan repayments.

Sure, there may be some questions raised by the customer. In our successful training sessions, we dedicate a great deal of time on overcoming objections and answering sticky questions so your staff will have every tool available.

We live in a modern era where answers are only a click of the mouse away.

Ensuring you have up-to-date links

on your websites that take the customer through to your F&I partners may eliminate some of

these questions for your dealership.So just ask yourself how long has

it been since you have updated your website including your F&I pages?

I’m sure all of you and your teams would like to avoid a lost sale or even worse a referral to the “TMO” over the fact you haven’t fully disclosed everything in a sales agreement, loan contract or insurance policy. Not doing so may result in refunds or fines years after selling the vehicle.

If you would like more guidance and training on the “how” and “why” of disclosure, feel free to contact us to arrange a visit.

Ultimately, by adopting this policy you will in turn build more trust and rapport with each customer. That should result in more repeat business, referrals and, therefore, more vehicle, finance and insurance sales.

Happy selling and go the All Blacks.

Contact Erin Mills Business Coach, Protecta Insurance Email: erin.mills@protecta.co.nz Phone: 0800 776 832

Specialised Training to Increase Your SalesOur Specialised F&I Training is helping our Motor Dealers achieve greater sales and increased profits.It’s not a secret. Find out more today.

SIMON MOOREMotor-trader development

manager Protecta Insurance

“Gone are the days of the tie covering the interest rate.”

disclosure to avoid exposure

22 www.autofile.co.nz

disputes

Background On May 4, 2015, Terrence Dickson agreed to buy a 2013 Toyota Corolla GX 1.8-litre hatchback for $17,000 from Armstrong Auckland Ltd trading as Auckland City Toyota.

He purported to reject it on the grounds it wasn’t of acceptable quality because of rust spots on its roof. He applied for a refund of his purchase price and other costs incurred.

The dealer was willing to repair the faults, but said Dickson refused to return the vehicle to allow it to do so. It denied he was entitled to reject it under the Consumer Guarantees Act (CGA).

The caseThe vehicle was advertised on Autotrader’s website for $17,990 in May 2015 as “in excellent condition” with an odometer reading of 47,200km.

Before agreeing to buy it, Dickson negotiated $990 off the purchase price. The trader said this was given in consideration of him agreeing to take it in its then-current condition and unprepared for sale.

Dickson denied that and the vehicle offer and sale agreement recorded no such agreement.

He added he bought it without having a pre-purchase inspection done because he said he trusted the trader to supply a car free of faults.

When Dickson collected it on May 6, it had been washed and he was unaware of any issues with its paintwork. He claimed he first

became aware of roof blemishes about three weeks later.

Dickson’s wife took it to Steve Nuich Panelbeaters & Spray Painters on May 19. It quoted her $776 to repaint the roof.

Eight days later, she had A-Grade Vehicle Inspection complete a pre-purchase inspection prior to which she pointed out the roof. The report listed “badly marked body plus rust”. Other issues were a dirty air filter and what was understood to be a windscreen chip.

The couple met Mr P Glenn, the trader’s used vehicle manager, on May 28. He agreed to repaint the roof and arranged for the car to be returned on June 2 for this to be done.

However, Dickson delivered a letter on June 2 to reject the vehicle. This stated: “We deem the car isn’t of acceptable quality under the CGA due to the paint defects.”

It added: “We wish return this vehicle as we cannot feel sufficiently assured there will not be ongoing rust problems even if repaired according to the manager’s offer.”

He obtained quotations from Moselle Panel & Paint of $1,600 and from Allan Wakeling Panel Beaters & Spraypainters of $1,587 to repaint the roof. Moselle also quoted $1,569 to repaint the bonnet, left and right-front guards, front bumper and tow eye.

Dickson had SGS New Zealand examine the paintwork to see if there was a manufacturing defect. Its inconclusive report stated the

coating’s faults could be due to in-service damage or poor coating quality.

The findingThe tribunal, in determining if the vehicle complied with the CGA’s guarantee of acceptable quality, had regard to it being a two-year-old New Zealand-new Toyota Corolla, which had travelled 47,200km when sold.

It also considered its price of $17,000 and representations it was in an excellent condition when supplied.

The trader said the vehicle hadn’t been prepared for sale when it was first seen by the buyer on May 4 and had a sign on it saying so. The buyer said he didn’t see it.

Whether or not the sign was on the car was immaterial because the dealer supplied it with stone-chip damage to its roof and bonnet, which meant it was unacceptable in appearance and finish.

The reasons for the finding were based on evidence given by the buyer, the contents of SGS’ report and the tribunal’s inspection of the paintwork in strong sunlight at the end of the hearing on August 24.

It didn’t consider a reasonable consumer paying $17,000 for a two-year-old car of this type with 47,200km on its odometer would regard these defects as acceptable, particularly when sold by a franchised dealer.

The buyer claimed the vehicle

The case: The buyer wanted to

reject his Toyota Corolla because of

problems with its paintwork, but

the dealer said he refused to return

it to be repaired.

The decision: The trader

was ordered to remedy problems

with the vehicle. But the buyer’s

application to reject the car was

dismissed because he didn’t fulfil

his obligations under consumer law

by giving the dealer a reasonable

opportunity to fix it.

At: The Motor Vehicle Disputes

Tribunal, Auckland.

wasn’t of acceptable quality and the tribunal agreed.

However, the adjudicator didn’t think the faults with the roof and the stone-chipped bonnet were substantial because both could be readily repaired for less than 19 per cent of the car’s purchase price.

The CGA provides that when a fault isn’t substantial or one which cannot be rectified, the buyer is obliged to “require the supplier to remedy the failure within a reasonable time”.

The buyer wouldn’t allow the trader to repaint the roof and the tribunal thought he should have done so to comply with his CGA obligations.

It decided the purchaser didn’t require the dealer to remedy the faults and give it a reasonable opportunity to do so before he rejected the car, so it was unable to uphold the rejection.

OrdersThe buyer’s application was dismissed. He had to return the vehicle to the trader for the roof, bonnet and front bumper to be repainted.

Buyer failed to give dealer ‘reasonable opportunity’ to remedy car’s faults

5000  

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41%  

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New  

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Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne

Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin

Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth

Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua

Ar

ou

n d t h e c ou nt

ry

20 | www.autofile.co.nz

0800 7000 44autoport.netwww.

UK, Japanese and local vehicles.Finance available.

The TRUSTED online wholesale trading site.

PHONE 0800 ARMACUP (276 2287) or 09 303 3314EMAIL enquiries@armacup.com

www.armacup.com

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Biggest increases/Decreases By town year-on-year

(OctOber 2013 vs OctOber 2012)

Biggest increases new Used

westport  100.0% Blenheim  95.5% thames  51.2% nelson  64.9% napier  34.1% rotorua  52.0%

Biggest decreases new Used

wanganui  27.7% westport  41.7% gisborne  26.8% Masterton  20.0% timaru  23.7% timaru  12.4%

7000

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‘13

Used

New7962

8545

1805

6740

Used Vehicle RegistRatiOnsNorth IslaNd versus south IslaNd

PassengeR Vehicle RegistRatiOnsNew versus used

Vehi

cles

sol

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DunedinChristchurch

4320

495

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290

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229

216

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Used imPORt PassengeR Vehicle RegistRatiOns by city

october 2013

autoport.net

The TRUSTED online wholesale trading site.

26 | www.autofile.co.nz

www.autofile.co.nz | 27

Annual high for stockpileThe amount of stock held

by used car dealers during

October was the highest

monthly total of the year.

There were 10,374 units

imported last month with a

variance of 1,829 on 8,545 sales.

The number of cars in stock

amounted to 9,323 compared to

7,494 in September.

There have been two other

major increases during 2013 – with

variances between imports and sales

of 3,121 in April and 2,507 in May.

Graeme Macdonald, chairman

of the North Island branch of the

Imported Motor Vehicle Industry

Association, says the current

stockpile should correct itself – as it

normally does.“If the monthly stockpile was

10,000 on a regular basis it means

there are solid holding numbers,”

he told Autofile. “North of that

and we would be looking at an

oversupply issue.

“There was good buying in Japan

in March, and we saw high arrival

numbers in April, May and June.

“The stockpile occurs more at

certain times of the year. Since

I came back into the industry in

1996, it has ebbed and flowed.”

Used car stock levels are

traditionally based on what’s

happening in Japan and what

consumers are buying here.

Conditions there have improved

recently and the exchange rate

has gone up.“October and November are

normally difficult for the industry,

so the stockpile tends to go

up,” says Macdonald. “But trade

swings up over Christmas and the

holidays, so it goes down.

“December and January are

good months for sales because

people take time off work, the kids

are off school and people may have

Christmas bonuses or holiday pay.

“It’s a time when Kiwis tend to

make financial decisions, so dealers

need to have plenty of stock to

match demand.“When the market’s down in

Japan, stock is hard to get. When

it’s buoyant, you tend to buy what

you can because you don’t know

what will be available next time.

“Dealers also need to bear in

mind it takes four to six weeks to

get stock from Japan.”

Larger operations, of say 300

units, are more static with their

holding not changing too much.

A drop of 50 units may not be

too drastic. But stock can vary

enormously by proportion on yards

with 30 to 40 cars.

“They can suddenly be selling

without having bought for a few

weeks and being 10-15 units down

makes them more susceptible,”

says Macdonald.

“Dealers then jump online to

buy more from Japan, but that’s

always been the way.

“You can oversupply when

buying conditions are good, but

the marketplace normally corrects

itself by pulling back from Japan or

selling down. The numbers might

drop for a month or two before

trundling up again.

“There’s no magic supply-chain

miracle. When it’s slow, it tends to be

slow for everybody. If you can get

good supply with a good exchange

rate, everyone benefits.”

did come down after the global

financial crisis [GFC].

“Stocking levels then increased

again and they respond to the

number of new vehicles sold and

the rate at which they are sold.

“They basically go up when

sales go up, but I’m not so sure

about the days stock is held for

being longer and can’t explain that.

“Average sales per day came

down during the GFC and before

that they were much higher.”

If 80,000 vehicles are sold one

year and 100,000 are sold the

following year, the average sales

per day should be higher – and

the MIA is expecting more new

vehicles to be sold this year than

during 2012.There were 54,404 sales in 2009,

62,029 in 2010, 64,019 in 2011

and 76,871 in 2012, and the MIA is

predicting about 82,000 passenger

vehicle and SUV sales this year.

“We’re looking at about 30,600

light commercials and we’re on

track for 112,000 or 113,000 new

vehicle sales overall.”

Business confidence being

high and strong regional

economies in Auckland and

Christchurch are boosting sales.

“Trades people are upgrading

their vehicles,” says Crawford.

“Although passenger cars aren’t so

hot, SUVs are.“People in the housing market

are refinancing their mortgages

to buy big-ticket items especially

when they are confident about

keeping their jobs.”

All that said, some of the

regional centres, such as Hawke’s

Bay and Palmerston North, aren’t

showing as much growth as

other centres.“But 80 per cent of New Zealand’s

population is in Auckland and

Christchurch. “If you add in Dunedin and

Wellington, these centres cover a

large proportion of the population

and all have strong economies.”

Year to date, 77,438 new cars

have been imported and 68,612

have been registered to give a

variance of 8,826 so far this year.

Days with stock at hand has

been steadily increasing from 78 in

January to 131 in October.

Last year 90,754 units were

imported and there were 76,871

sales for a variance of 13,883.

Stock levels of new cars have

increased every month

except one this year, with

October’s total of 29,509 being the

highest of 2013.There were 7,962 sales last

month, also this year’s biggest

amount, while the variance was

1,400 with 9,362 units imported –

the second highest amount after

11,065 imports in August.

The total stock figure at the

end of December was 20,683 and

that dropped to this year’s low of

18,653 in January.

David Crawford, chief executive

officer of the Motor Industry

Association (MIA), says current

models aren’t sitting around in

stock for too long.

“The industry tends to manage

stock levels quite well and does this

day in, day out,” he told Autofile.

“My data suggests this is a

cyclical thing and levels were no

higher in previous years, but they

Industry manages levels well

Dealer stock of new cars in New Zealand - Oct 2013

2012 Imported NeW CArS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

MIA stock estimate as at end of December 2011 12,984

Jan ‘12 5,026 7,499 (2,473) 10,511 242 43

Feb ‘12 7,368 5,633 1,735 12,246 223 55

Mar ‘12 7,228 6,499 729 12,975 218 59

Apr ‘12 6,285 5,430 855 13,830 209 66

May ‘12 7,742 5,942 1,800 15,630 205 76

Jun ‘12 8,870 7,142 1,728 17,358 211 82

Jul ‘12 7,894 6,208 1,686 19,044 209 91

Aug ‘12 8,589 5,959 2,630 21,674 207 105

Sep ‘12 6,828 6,637 191 21,865 209 105

Oct ‘12 8,155 7,336 819 22,684 211 107

Nov ‘12 8,953 6,484 2,469 25,153 212 119

Dec ‘12 7,816 6,102 1,714 26,867 211 128

ytd total 90,754 76,871 13,883

2013 Imported NeW CArS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

Total stock at the end of December 2012 26,867

Jan ‘13 5,355 7,385 (2,030) 24,837 238 104

Feb ‘13 7,027 5,799 1,228 26,065 223 117

Mar ‘13 6,329 6,800 (471) 25,594 222 115

Apr ‘13 7,391 5,908 1,483 27,077 216 125

May ‘13 7,429 6,347 1,082 28,159 214 132

Jun ‘13 8,051 7,542 509 28,668 220 130

Jul ‘13 8,423 6,769 1,654 30,322 220 138

Aug ‘13 11,065 6,828 4,237 34,559 220 157

Sep ‘13 7,006 7,272 (266) 34,293 222 154

Oct ‘13 9,362 7,962 1,400 35,693 226 158

Nov ‘13 - - - - - -

Dec ‘13 - - - - - -

ytd total 77,438 68,612 8,826

2013 predicted sales 82,380

Dealer stock of used car imports in New Zealand - Oct 2013

2012 Imported USed ImportS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

Total stock at the end of December 2011 8,579

Jan ‘12 3,191 6,375 (3,184) 5,395 206 26

Feb ‘12 4,920 6,000 (1,080) 4,315 210 21

Mar ‘12 6,504 6,429 75 4,390 209 21

Apr ‘12 6,613 5,877 736 5,126 206 25

May ‘12 7,693 6,793 900 6,026 208 29

Jun ‘12 6,947 6,184 763 6,789 208 33

Jul ‘12 5,335 6,641 (1,306) 5,483 209 26

Aug ‘12 5,540 6,621 (1,081) 4,402 210 21

Sep ‘12 5,506 6,222 (716) 3,686 209 18

Oct ‘12 5,688 6,867 (1,179) 2,507 211 12

Nov ‘12 8,486 7,183 1,303 3,810 213 18

Dec ‘12 6,414 7,119 (705) 3,105 215 14

ytd total 72,837 78,311 (5,474)

2013 Imported USed ImportS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

Total stock at the end of December 2012 3105

Jan ‘13 4,468 7,397 (2,929) 176 239 0.7

Feb ‘13 8,247 6,922 1,325 1,501 243 6

Mar ‘13 8,852 7,581 1,271 2,772 243 11

Apr ‘13 10,539 7,418 3,121 5,893 244 24

May ‘13 10,967 8,460 2,507 8,400 250 34

Jun ‘13 8,089 7,862 227 8,627 252 34

Jul ‘13 8,623 9,629 (1,006) 7,621 261 29

Aug ‘13 8,635 8,648 (13) 7,608 263 29

Sep ‘13 7,501 7,615 (114) 7,494 262 29

Oct ‘13 10,374 8,545 1,829 9,323 263 35

Nov ‘13 - - - - - -

Dec ‘13 - - - - - -

ytd total 86,295 80,077 6,218

2013 predicted sales 96,145

xxxxxxxxxxxxxxxxxxxx

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New Passenger Vehicle Sales by Make - November 2013Make Nov '13 Nov '12 +/- % Nov '13

Mkt Share 2013 total 2013 Mkt ShareToyota 1746 1190 46.7 23.4% 14670 19.3%Holden 685 673 1.8 9.2% 8102 10.7%Ford 618 596 3.7 8.3% 6519 8.6%Hyundai 572 624 -8.3 7.7% 6695 8.8%Mazda 512 485 5.6 6.9% 5447 7.2%Nissan 382 281 35.9 5.1% 3342 4.4%Suzuki 376 405 -7.2 5.0% 4436 5.8%Mitsubishi 351 272 29.0 4.7% 3661 4.8%Honda 310 312 -0.6 4.2% 2994 3.9%Volkswagen 288 261 10.3 3.9% 3527 4.6%Kia 202 240 -15.8 2.7% 2563 3.4%BMw 172 178 -3.4 2.3% 1861 2.4%Subaru 165 153 7.8 2.2% 1645 2.2%Audi 163 150 8.7 2.2% 1748 2.3%Mercedes-Benz 128 82 56.1 1.7% 1398 1.8%Peugeot 108 60 80.0 1.4% 1001 1.3%Jeep 92 65 41.5 1.2% 775 1.0%Ssangyong 86 49 75.5 1.2% 724 1.0%Dodge 64 46 39.1 0.9% 478 0.6%Skoda 63 56 12.5 0.8% 654 0.9%Lexus 54 44 22.7 0.7% 508 0.7%Land Rover 51 22 131.8 0.7% 443 0.6%Mini 44 43 2.3 0.6% 474 0.6%Chery 34 21 61.9 0.5% 351 0.5%Alfa Romeo 24 31 -22.6 0.3% 182 0.2%Great wall 23 38 -39.5 0.3% 211 0.3%Fiat 21 2 950.0 0.3% 142 0.2%Renault 21 8 162.5 0.3% 98 0.1%Volvo 18 19 -5.3 0.2% 229 0.3%Porsche 13 11 18.2 0.2% 182 0.2%Citroen 12 16 -25.0 0.2% 286 0.4%Jaguar 12 5 140.0 0.2% 128 0.2%Chrysler 10 13 -23.1 0.1% 120 0.2%Can-Am 9 6 50.0 0.1% 75 0.1%Daihatsu 6 19 -68.4 0.1% 258 0.3%Aston Martin 4 1 300.0 0.1% 25 0.0%Maserati 4 2 100.0 0.1% 14 0.0%Mahindra 3 - - 0.0% 6 0.0%MG 2 0 200.0 0.0% 12 0.0%Chrysler Jeep 1 - - 0.0% 1 0.0%Mclaren 1 0 100.0 0.0% 6 0.0%Others 3 5 -40.0 0.0% 71 0.1%total 7453 6484 14.9 100.0% 76062 100.0%

New Passenger Vehicle Sales by Model - November 2013Make Model Nov '13 Nov '12 +/- % Nov Mkt

Share2013

total2013 Mkt

ShareToyota Corolla 626 462 35.5 8.4% 5283 6.9%Toyota RAV4 289 80 261.3 3.9% 2521 3.3%Holden Commodore 260 171 52.0 3.5% 2399 3.2%Mazda Cx-5 239 141 69.5 3.2% 1989 2.6%Toyota yaris 227 267 -15.0 3.0% 2235 2.9%Suzuki Swift 218 254 -14.2 2.9% 2750 3.6%Ford Mondeo 184 98 87.8 2.5% 1201 1.6%Hyundai ix35 168 81 107.4 2.3% 1338 1.8%Mitsubishi Lancer 168 84 100.0 2.3% 894 1.2%Toyota Camry 168 131 28.2 2.3% 1270 1.7%Holden Captiva 135 319 -57.7 1.8% 2039 2.7%Volkswagen Golf 134 103 30.1 1.8% 1469 1.9%Toyota Highlander 118 79 49.4 1.6% 1092 1.4%Ford Focus 114 212 -46.2 1.5% 1429 1.9%Honda Jazz 113 76 48.7 1.5% 922 1.2%Ford Kuga 112 18 522.2 1.5% 952 1.3%Mazda Mazda3 109 151 -27.8 1.5% 1537 2.0%Toyota Aurion 107 23 365.2 1.4% 447 0.6%Holden Cruze 106 80 32.5 1.4% 1925 2.5%Hyundai Santa Fe 103 261 -60.5 1.4% 1847 2.4%Honda Civic 100 115 -13.0 1.3% 852 1.1%Mitsubishi Outlander 97 118 -17.8 1.3% 1258 1.7%Hyundai i30 95 103 -7.8 1.3% 1255 1.6%Nissan Qashqai 93 106 -12.3 1.2% 884 1.2%Toyota Landcruiser Prado 87 38 128.9 1.2% 557 0.7%Nissan x-Trail 86 52 65.4 1.2% 779 1.0%Ford Territory 83 137 -39.4 1.1% 1188 1.6%Volkswagen Tiguan 78 53 47.2 1.0% 689 0.9%Hyundai Accent 77 29 165.5 1.0% 572 0.8%Honda CRV 71 82 -13.4 1.0% 793 1.0%Mazda Mazda6 70 82 -14.6 0.9% 960 1.3%Mazda Mazda2 66 77 -14.3 0.9% 712 0.9%Ford Falcon 65 45 44.4 0.9% 835 1.1%Nissan Pathfinder 65 7 828.6 0.9% 191 0.3%Dodge Journey 64 46 39.1 0.9% 476 0.6%Jeep Grand Cherokee 64 39 64.1 0.9% 502 0.7%Ssangyong Korando 63 36 75.0 0.8% 480 0.6%Ford Fiesta 60 85 -29.4 0.8% 892 1.2%Bmw 116i 59 13 353.8 0.8% 378 0.5%Holden Malibu 58 - - 0.8% 334 0.4%Others2254 2130 5.8 30.2% 25936 34.1%total7453 6484 14.9 100.0% 76062 100.0%

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850 wds

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New Passenger registrations - 2012-2013

Subscribe - FREEgo to www.autofile.co.nz/subscribe for the latest industry newsConneCt & engage

disputes

BackgroundFaye Shewan bought a new 2010 Dodge Journey from Continental Car Services for $37,268 on August 10, 2010.

She sought damages of $5,199, which was the cost incurred in having its transmission repaired about four years and 58,544km after purchasing it.

The claim’s basis was the fault was a failure of substantial character within the meaning of section 21 of the CGA.

The trader accepted the problem amounted to a breach of the guarantee of acceptable quality, but disputed it was substantial.

It said because Shewan didn’t require it to remedy the problem when it occurred, she didn’t comply with section 18(2) of the act so the trader wasn’t liable for the repair costs.

Section 21 of the CGA defines circumstances in which not complying with the guarantee of acceptable quality will be regarded as being a failure of a substantial character within section 18(3).

The legislation adds a failure to comply with a guarantee is substantial under certain circumstances. This is when: The goods wouldn’t have

been acquired by a reasonable consumer fully acquainted with the failure’s nature and extent.

 They depart in one or more significant respects from the description by which they were supplied.

 The goods are substantially unfit for what they are

commonly supplied for or, when section 8(1) applies, they are unfit for a purpose made known, or for which the goods would be fit and they cannot easily and within a reasonable time be remedied to be fit for purpose.

 They aren’t of acceptable quality within the meaning of section seven of the CGA because they are unsafe.

The caseShewan produced evidence to prove she had the vehicle serviced regularly by Dodge-authorised agents up until the transmission failed.

She sought advice from Gulf Motor Holdings, an authorised agent, concerning transmission noise when it serviced the car on September 3, 2014.

Gulf told her she should take it to a specialist because it was out of its three-year manufacturer’s warranty and it didn’t service transmissions. It recommended Kaspa Transmissions Glenfield.

Her claim was the transmission failed after she had used the vehicle to travel 58,544km in a period of a little more than four years after it was supplied.

The evidence provided showed this occurred because the hardening on its bearings failed, which resulted in the damage.

As a result of that bearing failure, Shewan incurred costs of $5,199 to Kaspa in having the transmission overhauled.

The trader – represented by Mr S Holland, after-sales manager of

the Sime Darby Retail Group – said the dealer was associated with his company.

Holland agreed the bearing was faulty and this amounted to a breach of the CGA’s guarantee of acceptable quality.

He produced a document about “your task as a Chrysler affiliate” dated June 2005 issued by Chrysler International and said it covered non-warranty goodwill.

Holland added that – on a balance of probabilities – had an application been made under that policy when the fault was diagnosed, he believed it would have been accepted by Chrysler.

However, he considered the bearing’s failure was a fault the trader should have been informed of before it was replaced by Kaspa and Shewan’s failure to do so meant it had no liability for the repair costs she was claiming.

Holland didn’t consider the problem with the bearing was a failure of substantial character. He added that a transmission, if regularly serviced, should last at least 100,000km.

The findingThe tribunal believed the failure of the bearing, and the reconditioning of the converter and the transmission cooler, at a cost of $5,199 by Kaspa was a failure of substantial character in terms of section 21(a) of the CGA.

This was because the vehicle would have become undriveable without this work having been completed.

The case: The buyer of a Dodge

Journey claimed the cost of having

its transmission repaired. The dealer

said it wasn’t liable because the

purchaser didn’t ask it to remedy

the problem.

The decision: The tribunal

ruled the failure was substantial

as defined by the Consumer

Guarantees Act (CGA). It ordered

the trader to foot the repair bill as

damages in compensation payable

for any reduction in the car’s value.

At: The Motor Vehicle Disputes

Tribunal, Auckland.

Also, the tribunal didn’t consider any reasonable consumer would have acquired the car if he or she had been fully acquainted with the nature and extent of the failure and remedial costs.

Section 18(3) of the CGA states than when a failure cannot be remedied, or is of a substantial character within section 21’s meaning, the consumer may: Subject to section 20, reject

the goods in accordance with section 22, or

 Obtain from damages in compensation for any reduction in value of the goods below the price paid or payable for them.

The tribunal was required to consider by section 18(3) of the CGA in a situation when – as in this matter – the buyer didn’t reject the vehicle, what damages were payable for any reduction in its value.

It considered those suffered by the purchaser were the costs incurred to Kaspa to have the transmission overhauled.

OrderThe trader had to immediately pay $5,199 to the buyer.

Purchaser wins compensation four years after transmission problem

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Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne

Napier New Plymouth Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Westport Christchurch Timaru Oamaru Dunedin

Invercargill Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth

Wanganui Palmerston North Masterton Wellington Nelson Blenheim Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua

Ar

ou

n d t h e c ou nt

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Biggest increases/Decreases By town year-on-year

(OctOber 2013 vs OctOber 2012)

Biggest increases new Used

westport  100.0% Blenheim  95.5% thames  51.2% nelson  64.9% napier  34.1% rotorua  52.0%

Biggest decreases new Used

wanganui  27.7% westport  41.7% gisborne  26.8% Masterton  20.0% timaru  23.7% timaru  12.4%

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october 2013

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Annual high for stockpileThe amount of stock held

by used car dealers during

October was the highest

monthly total of the year.

There were 10,374 units

imported last month with a

variance of 1,829 on 8,545 sales.

The number of cars in stock

amounted to 9,323 compared to

7,494 in September.

There have been two other

major increases during 2013 – with

variances between imports and sales

of 3,121 in April and 2,507 in May.

Graeme Macdonald, chairman

of the North Island branch of the

Imported Motor Vehicle Industry

Association, says the current

stockpile should correct itself – as it

normally does.“If the monthly stockpile was

10,000 on a regular basis it means

there are solid holding numbers,”

he told Autofile. “North of that

and we would be looking at an

oversupply issue.

“There was good buying in Japan

in March, and we saw high arrival

numbers in April, May and June.

“The stockpile occurs more at

certain times of the year. Since

I came back into the industry in

1996, it has ebbed and flowed.”

Used car stock levels are

traditionally based on what’s

happening in Japan and what

consumers are buying here.

Conditions there have improved

recently and the exchange rate

has gone up.“October and November are

normally difficult for the industry,

so the stockpile tends to go

up,” says Macdonald. “But trade

swings up over Christmas and the

holidays, so it goes down.

“December and January are

good months for sales because

people take time off work, the kids

are off school and people may have

Christmas bonuses or holiday pay.

“It’s a time when Kiwis tend to

make financial decisions, so dealers

need to have plenty of stock to

match demand.“When the market’s down in

Japan, stock is hard to get. When

it’s buoyant, you tend to buy what

you can because you don’t know

what will be available next time.

“Dealers also need to bear in

mind it takes four to six weeks to

get stock from Japan.”

Larger operations, of say 300

units, are more static with their

holding not changing too much.

A drop of 50 units may not be

too drastic. But stock can vary

enormously by proportion on yards

with 30 to 40 cars.

“They can suddenly be selling

without having bought for a few

weeks and being 10-15 units down

makes them more susceptible,”

says Macdonald.

“Dealers then jump online to

buy more from Japan, but that’s

always been the way.

“You can oversupply when

buying conditions are good, but

the marketplace normally corrects

itself by pulling back from Japan or

selling down. The numbers might

drop for a month or two before

trundling up again.

“There’s no magic supply-chain

miracle. When it’s slow, it tends to be

slow for everybody. If you can get

good supply with a good exchange

rate, everyone benefits.”

did come down after the global

financial crisis [GFC].

“Stocking levels then increased

again and they respond to the

number of new vehicles sold and

the rate at which they are sold.

“They basically go up when

sales go up, but I’m not so sure

about the days stock is held for

being longer and can’t explain that.

“Average sales per day came

down during the GFC and before

that they were much higher.”

If 80,000 vehicles are sold one

year and 100,000 are sold the

following year, the average sales

per day should be higher – and

the MIA is expecting more new

vehicles to be sold this year than

during 2012.There were 54,404 sales in 2009,

62,029 in 2010, 64,019 in 2011

and 76,871 in 2012, and the MIA is

predicting about 82,000 passenger

vehicle and SUV sales this year.

“We’re looking at about 30,600

light commercials and we’re on

track for 112,000 or 113,000 new

vehicle sales overall.”

Business confidence being

high and strong regional

economies in Auckland and

Christchurch are boosting sales.

“Trades people are upgrading

their vehicles,” says Crawford.

“Although passenger cars aren’t so

hot, SUVs are.“People in the housing market

are refinancing their mortgages

to buy big-ticket items especially

when they are confident about

keeping their jobs.”

All that said, some of the

regional centres, such as Hawke’s

Bay and Palmerston North, aren’t

showing as much growth as

other centres.“But 80 per cent of New Zealand’s

population is in Auckland and

Christchurch. “If you add in Dunedin and

Wellington, these centres cover a

large proportion of the population

and all have strong economies.”

Year to date, 77,438 new cars

have been imported and 68,612

have been registered to give a

variance of 8,826 so far this year.

Days with stock at hand has

been steadily increasing from 78 in

January to 131 in October.

Last year 90,754 units were

imported and there were 76,871

sales for a variance of 13,883.

Stock levels of new cars have

increased every month

except one this year, with

October’s total of 29,509 being the

highest of 2013.There were 7,962 sales last

month, also this year’s biggest

amount, while the variance was

1,400 with 9,362 units imported –

the second highest amount after

11,065 imports in August.

The total stock figure at the

end of December was 20,683 and

that dropped to this year’s low of

18,653 in January.

David Crawford, chief executive

officer of the Motor Industry

Association (MIA), says current

models aren’t sitting around in

stock for too long.

“The industry tends to manage

stock levels quite well and does this

day in, day out,” he told Autofile.

“My data suggests this is a

cyclical thing and levels were no

higher in previous years, but they

Industry manages levels well

Dealer stock of new cars in New Zealand - Oct 2013

2012 Imported NeW CArS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

MIA stock estimate as at end of December 2011 12,984

Jan ‘12 5,026 7,499 (2,473) 10,511 242 43

Feb ‘12 7,368 5,633 1,735 12,246 223 55

Mar ‘12 7,228 6,499 729 12,975 218 59

Apr ‘12 6,285 5,430 855 13,830 209 66

May ‘12 7,742 5,942 1,800 15,630 205 76

Jun ‘12 8,870 7,142 1,728 17,358 211 82

Jul ‘12 7,894 6,208 1,686 19,044 209 91

Aug ‘12 8,589 5,959 2,630 21,674 207 105

Sep ‘12 6,828 6,637 191 21,865 209 105

Oct ‘12 8,155 7,336 819 22,684 211 107

Nov ‘12 8,953 6,484 2,469 25,153 212 119

Dec ‘12 7,816 6,102 1,714 26,867 211 128

ytd total 90,754 76,871 13,883

2013 Imported NeW CArS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

Total stock at the end of December 2012 26,867

Jan ‘13 5,355 7,385 (2,030) 24,837 238 104

Feb ‘13 7,027 5,799 1,228 26,065 223 117

Mar ‘13 6,329 6,800 (471) 25,594 222 115

Apr ‘13 7,391 5,908 1,483 27,077 216 125

May ‘13 7,429 6,347 1,082 28,159 214 132

Jun ‘13 8,051 7,542 509 28,668 220 130

Jul ‘13 8,423 6,769 1,654 30,322 220 138

Aug ‘13 11,065 6,828 4,237 34,559 220 157

Sep ‘13 7,006 7,272 (266) 34,293 222 154

Oct ‘13 9,362 7,962 1,400 35,693 226 158

Nov ‘13 - - - - - -

Dec ‘13 - - - - - -

ytd total 77,438 68,612 8,826

2013 predicted sales 82,380

Dealer stock of used car imports in New Zealand - Oct 2013

2012 Imported USed ImportS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

Total stock at the end of December 2011 8,579

Jan ‘12 3,191 6,375 (3,184) 5,395 206 26

Feb ‘12 4,920 6,000 (1,080) 4,315 210 21

Mar ‘12 6,504 6,429 75 4,390 209 21

Apr ‘12 6,613 5,877 736 5,126 206 25

May ‘12 7,693 6,793 900 6,026 208 29

Jun ‘12 6,947 6,184 763 6,789 208 33

Jul ‘12 5,335 6,641 (1,306) 5,483 209 26

Aug ‘12 5,540 6,621 (1,081) 4,402 210 21

Sep ‘12 5,506 6,222 (716) 3,686 209 18

Oct ‘12 5,688 6,867 (1,179) 2,507 211 12

Nov ‘12 8,486 7,183 1,303 3,810 213 18

Dec ‘12 6,414 7,119 (705) 3,105 215 14

ytd total 72,837 78,311 (5,474)

2013 Imported USed ImportS SoLd VArIANCe StoCk

AVerAge SALeS per dAy - ytd

dAyS StoCk

At hANd

Total stock at the end of December 2012 3105

Jan ‘13 4,468 7,397 (2,929) 176 239 0.7

Feb ‘13 8,247 6,922 1,325 1,501 243 6

Mar ‘13 8,852 7,581 1,271 2,772 243 11

Apr ‘13 10,539 7,418 3,121 5,893 244 24

May ‘13 10,967 8,460 2,507 8,400 250 34

Jun ‘13 8,089 7,862 227 8,627 252 34

Jul ‘13 8,623 9,629 (1,006) 7,621 261 29

Aug ‘13 8,635 8,648 (13) 7,608 263 29

Sep ‘13 7,501 7,615 (114) 7,494 262 29

Oct ‘13 10,374 8,545 1,829 9,323 263 35

Nov ‘13 - - - - - -

Dec ‘13 - - - - - -

ytd total 86,295 80,077 6,218

2013 predicted sales 96,145

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New Passenger Vehicle Sales by Make - November 2013Make Nov '13 Nov '12 +/- % Nov '13

Mkt Share 2013 total 2013 Mkt ShareToyota 1746 1190 46.7 23.4% 14670 19.3%Holden 685 673 1.8 9.2% 8102 10.7%Ford 618 596 3.7 8.3% 6519 8.6%Hyundai 572 624 -8.3 7.7% 6695 8.8%Mazda 512 485 5.6 6.9% 5447 7.2%Nissan 382 281 35.9 5.1% 3342 4.4%Suzuki 376 405 -7.2 5.0% 4436 5.8%Mitsubishi 351 272 29.0 4.7% 3661 4.8%Honda 310 312 -0.6 4.2% 2994 3.9%Volkswagen 288 261 10.3 3.9% 3527 4.6%Kia 202 240 -15.8 2.7% 2563 3.4%BMw 172 178 -3.4 2.3% 1861 2.4%Subaru 165 153 7.8 2.2% 1645 2.2%Audi 163 150 8.7 2.2% 1748 2.3%Mercedes-Benz 128 82 56.1 1.7% 1398 1.8%Peugeot 108 60 80.0 1.4% 1001 1.3%Jeep 92 65 41.5 1.2% 775 1.0%Ssangyong 86 49 75.5 1.2% 724 1.0%Dodge 64 46 39.1 0.9% 478 0.6%Skoda 63 56 12.5 0.8% 654 0.9%Lexus 54 44 22.7 0.7% 508 0.7%Land Rover 51 22 131.8 0.7% 443 0.6%Mini 44 43 2.3 0.6% 474 0.6%Chery 34 21 61.9 0.5% 351 0.5%Alfa Romeo 24 31 -22.6 0.3% 182 0.2%Great wall 23 38 -39.5 0.3% 211 0.3%Fiat 21 2 950.0 0.3% 142 0.2%Renault 21 8 162.5 0.3% 98 0.1%Volvo 18 19 -5.3 0.2% 229 0.3%Porsche 13 11 18.2 0.2% 182 0.2%Citroen 12 16 -25.0 0.2% 286 0.4%Jaguar 12 5 140.0 0.2% 128 0.2%Chrysler 10 13 -23.1 0.1% 120 0.2%Can-Am 9 6 50.0 0.1% 75 0.1%Daihatsu 6 19 -68.4 0.1% 258 0.3%Aston Martin 4 1 300.0 0.1% 25 0.0%Maserati 4 2 100.0 0.1% 14 0.0%Mahindra 3 - - 0.0% 6 0.0%MG 2 0 200.0 0.0% 12 0.0%Chrysler Jeep 1 - - 0.0% 1 0.0%Mclaren 1 0 100.0 0.0% 6 0.0%Others 3 5 -40.0 0.0% 71 0.1%total 7453 6484 14.9 100.0% 76062 100.0%

New Passenger Vehicle Sales by Model - November 2013Make Model Nov '13 Nov '12 +/- % Nov Mkt

Share2013

total2013 Mkt

ShareToyota Corolla 626 462 35.5 8.4% 5283 6.9%Toyota RAV4 289 80 261.3 3.9% 2521 3.3%Holden Commodore 260 171 52.0 3.5% 2399 3.2%Mazda Cx-5 239 141 69.5 3.2% 1989 2.6%Toyota yaris 227 267 -15.0 3.0% 2235 2.9%Suzuki Swift 218 254 -14.2 2.9% 2750 3.6%Ford Mondeo 184 98 87.8 2.5% 1201 1.6%Hyundai ix35 168 81 107.4 2.3% 1338 1.8%Mitsubishi Lancer 168 84 100.0 2.3% 894 1.2%Toyota Camry 168 131 28.2 2.3% 1270 1.7%Holden Captiva 135 319 -57.7 1.8% 2039 2.7%Volkswagen Golf 134 103 30.1 1.8% 1469 1.9%Toyota Highlander 118 79 49.4 1.6% 1092 1.4%Ford Focus 114 212 -46.2 1.5% 1429 1.9%Honda Jazz 113 76 48.7 1.5% 922 1.2%Ford Kuga 112 18 522.2 1.5% 952 1.3%Mazda Mazda3 109 151 -27.8 1.5% 1537 2.0%Toyota Aurion 107 23 365.2 1.4% 447 0.6%Holden Cruze 106 80 32.5 1.4% 1925 2.5%Hyundai Santa Fe 103 261 -60.5 1.4% 1847 2.4%Honda Civic 100 115 -13.0 1.3% 852 1.1%Mitsubishi Outlander 97 118 -17.8 1.3% 1258 1.7%Hyundai i30 95 103 -7.8 1.3% 1255 1.6%Nissan Qashqai 93 106 -12.3 1.2% 884 1.2%Toyota Landcruiser Prado 87 38 128.9 1.2% 557 0.7%Nissan x-Trail 86 52 65.4 1.2% 779 1.0%Ford Territory 83 137 -39.4 1.1% 1188 1.6%Volkswagen Tiguan 78 53 47.2 1.0% 689 0.9%Hyundai Accent 77 29 165.5 1.0% 572 0.8%Honda CRV 71 82 -13.4 1.0% 793 1.0%Mazda Mazda6 70 82 -14.6 0.9% 960 1.3%Mazda Mazda2 66 77 -14.3 0.9% 712 0.9%Ford Falcon 65 45 44.4 0.9% 835 1.1%Nissan Pathfinder 65 7 828.6 0.9% 191 0.3%Dodge Journey 64 46 39.1 0.9% 476 0.6%Jeep Grand Cherokee 64 39 64.1 0.9% 502 0.7%Ssangyong Korando 63 36 75.0 0.8% 480 0.6%Ford Fiesta 60 85 -29.4 0.8% 892 1.2%Bmw 116i 59 13 353.8 0.8% 378 0.5%Holden Malibu 58 - - 0.8% 334 0.4%Others2254 2130 5.8 30.2% 25936 34.1%total7453 6484 14.9 100.0% 76062 100.0%

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2013  

New Passenger registrations - 2012-2013

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New passenger vehicle registrations by city Used import passenger vehicle registrations by city

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24 | www.autofile.co.nz

Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier

New Plymouth Wanganui Palmerston North Masterton Well ington Nelson Blenhe im Greymouth Whangarei Auckland Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North Masterton Well ington Nelson

Blenhe im Greymouth Westport Christchurch Timaru Oamaru Dunedin Invercargill Whangarei Auckland

Hamilton Thames Tauranga Rotorua Gisborne Napier New Plymouth Wanganui Palmerston North

Masterton Well ington Nelson Blenhe im Greymouth Whangarei Auckland Hamilton Thames

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Christchurch

Christchurch

4,1985,792

1,597

1,550

555

858

Hamilton

Tauranga

Palmerston North

Dunedin

Hamilton

Tauranga

Palmerston North

Dunedin

502

753

346

551

221

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211 313

AucklandAuckland

Wellington

Wellington

New and used cars registered in September 2015 by regionwHA AUc HAm THA TAU roT Gis NAP NEw wAN PAl mAs wEl NEl BlE GrE wEs cHr Tim oAm dUN iNV ToTAl

Used cars 256 5,792 753 83 551 116 24 220 184 88 313 59 858 186 48 32 7 1,550 88 25 279 155 11,667

New cars 169 4,198 502 63 346 105 44 201 140 48 211 55 555 134 59 14 4 1,597 54 20 221 95 8,835

Total cars 425 9,990 1,255 146 897 221 68 421 324 136 524 114 1,413 320 107 46 11 3,147 142 45 500 250 20,502

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Used Import Passenger Vehicles By Country Of Export

coUNTry of ExPorT 2015 2014 2013

JAN ’15 fEB ’15 mAr ’15 APr ’15 mAy ’15 JUN ’15 JUl ’15 AUG ’15 sEP ’15 sEP sHArE % 2015 ToTAl 2014 ToTAl 2013 ToTAl

Australia 258 407 414 359 424 449 477 409 378 4.4% 3,575 3,167 1,990

Great Britain 110 87 86 71 73 108 66 64 65 0.7% 730 1,885 2,908

Japan 9,635 9,357 14,301 15,554 13,892 12,148 11,236 11,512 8,075 93.0% 105,710 130,770 100,784

Singapore 30 30 17 48 55 57 77 45 60 0.7% 419 252 146

USA 80 58 121 92 77 77 93 83 87 1.0% 768 1,278 1,205

Other countries 26 24 25 31 10 25 12 20 18 0.2% 191 286 251

Total 10,139 9,963 14,964 16,155 14,531 12,864 11,961 12,133 8,683 100.0% 111,393 137,638 107,284

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Used imports start to fall backImports of second-hand cars

bottomed out in September with 8,683 units crossing the

border for 2015’s lowest month.However, 111,393 used

passenger vehicles have come into the country so far this year.

This compares to 100,228 by the same time in 2014 – an increase of 11,165 units or by 11.14 per cent.

The second quarter of 2015 was the biggest for used imports on 43,550 units, which was an 8.6 per cent increase over the same period of 2014.

This year’s first quarter recorded a 20.3 per cent jump over 2014’s with 35,066 units imported.

The third quarter saw 32,777

used cars crossing our wharves, which was 5.9 per cent more than in last year’s same period.

Out of September’s total, 8,075 units came into New Zealand from Japan for that country’s slowest month of the year.

Australia was second on 378 units for its third lowest month of 2015, while the US notched up its fourth best month with 87.

The UK was next up on 65 for its second weakest total his year, while 60 used cars were imported from Singapore for its second highest month.

Peter Johnston, of Genuine Vehicle Imports in Penrose, Auckland, reports steady, solid

sales despite the weakened strength of the New Zealand dollar against the yen.

“We are a large yard with up to 400 vehicles ranging from small cars to commercials, and the last quarter was good despite the reported economic outlook,” he told Autofile.

Johnston says being a larger yard means the business hasn’t experienced the impact of the kiwi’s exchange rate tumbling against Japan’s currency as much as others, although some dealers are starting to increase unit prices to reflect it.

“Our most popular car has been the Nissan Tiida, but the amount of building going on around

Auckland has seen steady sales of used commercials too.”

Looking at projected sales, Johnston notes the summer season is always good for dealerships.

In terms of competition presented by “fly-by-nighters”, Johnston suggests the higher yen will see the numbers of such traders dropping off.

“We are playing the long game,” he adds. “We are reputable and permanent. We have a 50 per cent repeat or referral pattern to our business.

“Also, for Auckland, demand for houses and cars is not in decline, so the next quarter should also be positive.”

USEd ImPOrt PaSSENgEr VEhIClE arrIValS

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2012

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2015

www.autofile.co.nz 27

Proud to sPonsor the secondhand car sales statistics

steady trade across country

SECONdhaNd Car SalES - September 2015

dEAlEr-To-PUBlic PUBlic-To-PUBlic PUBlic-To-dEAlEr

sEPT '15 sEPT '14 +/- % mArKET sHArE sEPT '15 sEPT '14 +/- % sEPT '15 sEPT '14 +/- %

Whangarei 558 568 -1.8 3.17 1,830 1,774 3.2 235 237 -0.8

Auckland 6,091 5,849 4.1 34.58 14,432 13,558 6.4 4,815 4,405 9.3

Hamilton 1,487 1,465 1.5 8.44 3,223 3,168 1.7 1,129 1,277 -11.6

Thames 235 222 5.9 1.33 584 474 23.2 85 94 -9.6

Tauranga 924 1,005 -8.1 5.25 1,964 1,937 1.4 674 572 17.8

Rotorua 299 295 1.4 1.70 869 707 22.9 75 86 -12.8

Gisborne 170 195 -12.8 0.97 358 334 7.2 99 111 -10.8

Napier 557 546 2.0 3.16 1,389 1,322 5.1 407 374 8.8

New Plymouth 391 456 -14.3 2.22 993 1,004 -1.1 201 271 -25.8

Wanganui 180 177 1.7 1.02 577 435 32.6 109 145 -24.8

Palmerston North 753 847 -11.1 4.27 1,621 1,671 -3.0 566 675 -16.1

Masterton 178 157 13.4 1.01 390 354 10.2 96 103 -6.8

Wellington 1,604 1,453 10.4 9.11 2,738 2,725 0.5 1,121 1,151 -2.6

Nelson 309 315 -1.9 1.75 942 978 -3.7 231 214 7.9

Blenheim 197 200 -1.5 1.12 430 428 0.5 113 147 -23.1

Greymouth 56 89 -37.1 0.32 175 203 -13.8 44 48 -8.3

Westport 15 24 -37.5 0.09 59 76 -22.4 0 0 0.0

Christchurch 2,266 2,366 -4.2 12.86 5,182 5,112 1.4 1,862 1,788 4.1

Timaru 232 273 -15.0 1.32 498 504 -1.2 161 170 -5.3

Oamaru 54 75 -28.0 0.31 156 194 -19.6 11 27 -59.3

Dunedin 629 745 -15.6 3.57 1,793 1,685 6.4 425 532 -20.1

Invercargill 430 434 -0.9 2.44 1,001 935 7.1 297 342 -13.2

NZ total 17,615 17,756 -0.8 100.00 41,204 39,578 4.1 12,756 12,769 -0.1

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Sales of used passenger vehicles by dealers to members of the public remained almost

constant last month when compared to September 2014.

There were 17,615 such transactions recorded in September for a 0.8 per cent decrease from 17,756 in the same month of last year.

Masterton recorded the highest proportional jump – 13.4 per cent – in trader-to-public transactions from 157 to 178 units over the same timescale.

Second place went to Wellington with a 10.4 per cent rise from 1,453 to 1,604.

Two centres on the West Coast recorded the biggest proportional decreases in dealer-

to-public registrations last month.Westport had a 37.5 per cent

drop from 24 to 15, while they fell from 89 to 56 in Greymouth or by 37.1 per cent.

Nationally, trade-ins decreased by 0.1 per cent, 13 units, to 12,756.

The biggest gainer was Tauranga where dealer-to-public registrations climbed by 17.8 per cent from 572 to 674. Auckland came second with a 9.3 per cent increase to 4,815 from 4,405.

The only part of the New Zealand market to see an overall increase was private transactions, which climbed from 39,578 to 41,204 – or by 4.1 per cent.

Shane Drummond, managing

director of The Car Company in Nelson, is experiencing steady sales across his yard.

He has a range of SsangYong stock, and used economy cars and people movers through to vans, utes and four-wheel-drives.

“Our numbers are good, but there’s no denying we are struggling to purchase out of Japan,” he told Autofile.

“We have been buying up to 100 units a month. However, last month we bought half that many.

“This is mainly because of the exchange rate, but also due to the price of cars in Japan. We are more comfortable buying stuff locally and nationally.

“Despite the exchange rate, we are not seeing any downgrade at all, even though at the moment – by talking to a lot of dealers – things have been a bit quiet. We haven’t necessarily seen that.”

Ryan Durry, managing director of Quay Cars, also in the city, specialises in used vehicles priced at less than $15,000 with a focus on commercials and smaller cars under $5,000. He has about 50 units on his yard.

“We have recently sold lots of Falcon XR6s and Mazda 6 sedans,” he says. “These are the types of bread-and-butter units we get in.”

Most of his business’ trade is secured in the local area with some sales to buyers in Blenheim.

28 www.autofile.co.nz

new cars

‘Great’ model range boosts momentumSeptember was a solid month

for sales of new cars and SUVs with 8,785 being registered.

Of these, 5,775 units – or 65.7 per cent – were sold to businesses, according to statistics supplied to Autofile by the Motor Industry Association.

Toyota topped the ladder thanks to 1,469 registrations with 80.1 per cent of its sales, or 1,177 units, being to businesses.

Second spot was taken out by Holden on 1,067 units with 861 being business transactions, which accounted for 80.7 per cent of its total.

Mazda, in third spot, was the marque with the highest proportion of private registrations in September’s top five with 43.4 per cent of its sales – 385 units out of 887 – being sold to this part of the market.

Last month’s results means Mazda New Zealand recorded its best September on record.

They come on top on what managing director Andrew Clearwater describes as a “stellar year” so far for the marque.

With record sales of 981 new vehicles across the whole market, which are up by 25.4 per cent year on year, Mazda finished fourth overall in addition to third for cars and SUVs in the market last month.

Its figures for September extended its run of year-on-year growth to 28 consecutive months.

Clearwater says the results also consolidated Mazda’s second placing in passenger vehicle sales – excluding rental car registrations –

for the first nine months of the 2015.He describes this year’s

momentum for the brand as having been “amazing” and showing no signs of slowing down.

“It highlights what a great range of models we have in the market with a showroom to suit a wide range of buyers whatever their requirements,” says Clearwater.

“Set against our incredible September results, it was particularly pleasing to see the all-new CX-3 extend its foothold alongside its bigger brother the CX-5, which has cemented its position as New Zealand’s favourite mid-sized SUV.”

Mazda expects its growth to continue on the back of the recent launch of the all-new MX-5 and refreshed BT-50.

“Our hard-working dealer network is energised and excited about their new-generation showrooms,” adds Clearwater.

“We are jointly committed to growing our footprint around these exciting market opportunities.”

Fourth position in last month’s ladder went to Hyundai on 700 units, of which 23.7 per cent – or 166 passenger vehicles – were private transactions.

Ford sold 610 cars and SUVs to claim fifth. It had the biggest proportion of business transactions at 81.1 per cent in the top five, which equated to 495 units.

Mercedes-Benz was September’s best-selling prestige marque on 194 units, of which 63.9 per cent – or 124 – were business transactions. *B

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Passenger Car and SUV Sales by Private/Business split

mAKE PriVATE % PriVATE BUsiNEss % BUsiNEss ToTAl

Alfa Romeo 4 80.0 1 20.0 5

Aston Martin 3 100.0 0 0.0 3

Audi 70 37.4 117 62.6 187

Bentley 2 40.0 3 60.0 5

BMW 64 35.2 118 64.8 182

Chery 5 41.7 7 58.3 12

Chrysler 1 33.3 2 66.7 3

Citroen 9 56.3 7 43.8 16

Dodge 22 21.6 80 78.4 102

Ferrari 1 50.0 1 50.0 2

Fiat 94 82.5 20 17.5 114

Ford 115 18.9 495 81.1 610

Holden 206 19.3 861 80.7 1,067

Honda 268 75.9 85 24.1 353

Hyundai 166 23.7 534 76.3 700

Isuzu 11 47.8 12 52.2 23

Jaguar 7 53.8 6 46.2 13

Jeep 31 24.0 98 76.0 129

Kia 140 52.8 125 47.2 265

Lamborghini 0 0.0 1 100.0 1

Land Rover 30 44.8 37 55.2 67

Lexus 17 29.8 40 70.2 57

McLaren 1 100.0 0 0.0 1

Maserati 6 60.0 4 40.0 10

Mazda 385 43.4 502 56.6 887

Mercedes-Benz 70 36.1 124 63.9 194

MG 1 100.0 0 0.0 1

Mini 19 30.2 44 69.8 63

Mitsubishi 217 36.0 385 64.0 602

Nissan 203 47.8 222 52.2 425

Peugeot 30 60.0 20 40.0 50

Porsche 20 66.7 10 33.3 30

Renault 0 0.0 7 100.0 7

Skoda 25 30.9 56 69.1 81

SsangYong 50 45.0 61 55.0 111

Subaru 115 44.6 143 55.4 258

Suzuki 172 54.8 142 45.2 314

Toyota 292 19.9 1,177 80.1 1,469

Volkswagen 124 40.0 186 60.0 310

Volvo 14 25.0 42 75.0 56

Total 3,010 34.3 5,775 65.7 8,785

From the rising sun to the long white cloud The history of used car importing to New Zealand

www.autofile.co.nz 29

new vehicles

NEW VEhIClE marKEt SEgmENtatION - September 2015sEPT '15 sEPT '14 mTH% diff 2015 yTd 2014 yTd % yTd

Passenger 4,625 4,989 -7.3 36,682 38,404 -4.5

SUV 4,167 3,332 25.1 33,099 28,108 17.8

Light Commercial 3,073 2,862 7.4 25,561 23,781 7.5

Heavy Commercial 487 552 -11.8 3,557 3,724 -4.5

Other 122 86 41.9 658 398 65.3

ToTAl mArKET 12,474 11,821 5.5 99,557 94,415 5.4

Micro 201 199 1.0 1,376 1,394 -1.3

Light 1,181 1,545 -23.6 10,986 10,295 6.7

Small 1,714 1,908 -10.2 13,889 16,261 -14.6

Medium 717 681 5.3 5,284 5,158 2.4

Large 546 405 34.8 3,246 3,421 -5.1

Upper Large 18 22 -18.2 182 239 -23.8

People Movers 164 144 13.9 948 832 13.9

Sports 84 85 -1.2 771 804 -4.1

SUV Small 1,390 1,061 31.0 10,044 7,817 28.5

SUV Medium 1,412 1,312 7.6 12,106 10,508 15.2

SUV Large 1,348 925 45.7 10,639 9,420 12.9

SUV Upper Large 17 34 -50.0 310 363 -14.6

Light Buses 70 41 70.7 651 449 45.0

Vans 461 546 -15.6 3,829 4,332 -11.6

Pick Up/Chassis Cab 4x2 903 975 -7.4 7,918 7,331 8.0

Pick Up/Chassis Cab 4x4 1,639 1,300 26.1 13,163 11,669 12.8

Heavy Commercial 487 552 -11.8 3,557 3,724 -4.5

Other 122 86 41.9 658 398 65.3

ToTAl mArKET 12,474 11,821 5.5 99,557 94,415 5.4

NEW VEhIClE SalES BY BUYEr tYPE - September 2015sEPT '15 sEPT '14 mTH % 2015 yTd 2014 yTd % yTd

Passenger 4,625 4,989 -7.3 36,682 38,404 -4.5

Private 1,422 1,686 -15.7 14,374 14,676 -2.1

Business 1,844 2,057 -10.4 16,323 17,976 -9.2

Gov’t 217 223 -2.7 1,798 1,888 -4.8

Rental 1,142 1,023 11.6 4,187 3,864 8.4

SUV 4,167 3,332 25.1 33,099 28,108 17.8

Private 1,589 1,298 22.4 12,905 11,115 16.1

Business 1,834 1,548 18.5 15,304 14,282 7.2

Gov’t 42 74 -43.2 560 567 -1.2

Rental 702 412 70.4 4,330 2,144 102.0

Light Commercial 3,073 2,862 7.4 25,561 23,781 7.5

Private 713 543 31.3 6,360 5,617 13.2

Business 2,073 2,089 -0.8 17,262 16,650 3.7

Gov’t 111 158 -29.7 1,032 1,016 1.6

Rental 176 72 144.4 907 498 82.1

Sub Total 11,865 11,183 6.1 95,342 90,293 5.6

Private 3,724 3,527 5.6 33,639 31,408 7.1

Business 5,751 5,694 1.0 48,889 48,908 -0.0

Gov’t 370 455 -18.7 3,390 3,471 -2.3

Rental 2,020 1,507 34.0 9,424 6,506 44.9

Heavy Commercial 487 552 -11.8 3,557 3,724 -4.5

Other 122 86 41.9 658 398 65.3

Total 12,474 11,821 5.5 99,557 94,415 5.4

There were 12,474 new vehicles sold in New Zealand during September,

which was up by 5.5 per cent on 11,821 units during the same month of last year.

The biggest September on record for sales helped to boost the year-to-date total to 99,557 units. This is 5.4 per cent ahead of the same time in 2014 when there had been 94,415 registrations.

Ford’s Ranger was last month’s overall top model on 743 units. It was followed by Toyota’s Corolla with 687 and Hilux on 589.

The strong showing of the blue

improvements and enhancements.”As for the competition, Holter

says: “It has always been about the customers and letting them decide.

“But when launched in late 2011, the Ranger changed how New Zealanders looked at utes. In doing so, it put the competition on notice.

“There have been a lot of new and improved entrants with some still to come. But as others play catch up and think they are in range, our new model shifts the posts.

“There is a leading sales number and many people focus on that, but for us it’s the customers who matter. The Ranger isn’t propped

Utes dominate new registrationsoval’s ute in September means it notched up its third monthly sales record in a row.

Corey Holter, managing director of Ford NZ, believes the success of the ute – with its updated version now on the market – is down to an improved package that exceeds customer expectations and provides superior value.

“Customers are finding we have taken a winning ute and made it even better,” he says.

“It’s more than a facelift. The engineers and designers have looked at every aspect of the vehicle, and made significant

up by sales to rental companies and won’t be.”

Steve Prangnell, Toyota NZ’s general manager of sales, says there has been a lot of interest in the new Hilux, which goes on sale here in December.

He says this stems from existing owners and others entering the ute market, especially with the segment meeting the wider needs of people who previously might have previously bought sedans or SUVs.

“That’s a key reason for our expanded model range,” adds Prangnell. “We already have a good bank of advance orders.”

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30 www.autofile.co.nz

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The level of unsold stock in New Zealand can be attributed to more factors

than just exchange rates and consumer demand at a time when trade is high.

David Crawford, chief executive officer of the Motor Industry Association (MIA), says stock levels rise and fall because new-vehicle distributors import more when sales volumes go up.

“For some models, they may just have a short factory run,” he told Autofile. “I don’t see stock levels as being out of kilter with the overall picture.”

Crawford says popular segments, such as SUVs, can become stock-constrained when – for example – a particular vehicle type is allocated to another country.

“When the new Ford Ranger first came out that was stock-constrained for a little while, which took more than a year to get past,

are currently in high demand, according to Aaron Chatfield, dealer principal at Bay City Mitsubishi in Tauranga.

“For us at the moment, the issue is SUVs,” he says. “Previously we didn’t have a stock issue.

“We are definitely now having stock issues and in keeping up with demand. The market has swung this way recently.

“The Triton is a case in point. It’s very popular and we’ve recently done a price drop on it.

“Then all of a sudden and out of the blue, we might get told from Japan that they can’t fulfil the order, which means we are all caught short.

“The other issue is the demise of traditional people-mover style of vehicles in favour of something that’s more modern and versatile.”

Richard Devery, of King Toyota in Lower and Upper Hutt, says: “Earlier in the year, we had difficultly supplying stock such as

market variables affect supplybut its sales have really lifted since then,” he says.

“Some of it may also centre on run-outs with new models superseding older ones, and because of various sales and promotions that manufacturers have on the newer model.

“I can’t hear any alarms bells at present. What would be more challenging is if what’s being experienced in the demand for SUVs becomes more widespread.

“My observation is there always appears to be at least one make in a segment that is constrained and that’s a fact of business.”

First-time registrations in the SUV segment remained strong at 33 per cent of September’s market share, reports Crawford. Pick-ups and chassis cabs came in second last month with 20 per cent and small passenger vehicles third with a 14 per cent share.

Some marques and models

the RAV4 and the Highlander.“But stock has freed up and

we are expecting good supply right through to the end of the calendar year.”

While there were healthy sales of new cars last month with registrations coming in at 8,835 – up from September 2014’s total of 8,382 by 483 units or 5.4 per cent – the number of units crossing the border was lower than registrations by 483 units.

The national stock figure of 56,266 units for last month was up by 15.2 per cent on the previous year.

Daily sales, averaged out over the previous 12 months, came in at 258 last month compared to 243 in September 2014 – a jump of 15 more cars sold each day, or up by 6.8 per cent.

So far this year, 75,798 new cars have been imported and 70,238 sold to increase overall stock levels by 5,650 units.

DAYS StOck iN NZ - NEw cARS

200

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September 2014 — September 2015

September 2013 — September 2014

dealer stock of new cars in New Zealand cAr sAlEs

VAriANcE sTocKdAily sAlEs - 12-moNTH

AVErAGE

dAys sTocK

AT HANdimPorTEd rEGisTErEd

Sept ‘14 9,602 8,382 1,220 48,856 243 201

Oct ‘14 8,297 8,910 -613 48,243 245 197

Nov ‘14 9,075 8,063 1,012 49,255 247 199

Dec ‘14 8,248 6,797 1,451 50,706 248 204

Jan ‘15 6,713 9,010 -2,297 48,409 250 193

Feb ‘15 7,172 7,057 115 48,524 252 193

Mar ‘15 7,569 8,075 -506 48,018 252 191

Apr ‘15 7,746 6,373 1,373 49,391 252 196

May ‘15 9,395 6,843 2,552 51,943 253 206

Jun ‘15 8,297 9,021 -724 51,219 254 202

Jul ‘15 8,842 7,272 1,570 52,789 254 207

Aug ‘15 11,712 7,752 3,960 56,749 256 221

Sept ‘15 8,352 8,835 -483 56,266 258 218

year to date 75,798 70,238 5,560

change on sept 2014 -13.0% 5.4% 15.2%LESS IMPORTED MORE SOLD MORE STOCK

www.autofile.co.nz 31

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Drive away with finance from MARAC

market variables affect supply

dealer stock of used cars in New Zealand cAr sAlEs

VAriANcE sTocKdAily sAlEs - 12-moNTH

AVErAGE

dAys sTocK

AT HANdimPorTEd rEGisTErEd

Sept ‘14 11,203 11,142 61 16,814 335 50

Oct ‘14 12,650 11,105 1,545 18,359 342 54

Nov ‘14 11,284 11,532 -248 18,111 348 52

Dec ‘14 12,800 12,448 352 18,463 356 52

Jan ‘15 10,139 11,791 -1,652 16,811 362 46

Feb ‘15 9,963 10,572 -609 16,202 366 44

Mar ‘15 14,964 12,313 2,651 18,853 372 51

Apr ‘15 16,155 11,038 5,117 23,970 376 64

May ‘15 14,531 12,415 2,116 26,086 379 69

Jun ‘15 12,864 12,415 449 26,535 384 69

Jul ‘15 11,961 13,891 -1,930 24,605 389 63

Aug ‘15 12,133 12,061 72 24,677 391 63

Sept ‘15 8,683 11,667 -2,984 21,693 392 55

year to date 111,393 108,163 3,230

change on sept 2014 -22.5% 4.7% 29.0%LESS IMPORTED MORE SOLD MORE STOCK

Dealers are still finding the cross-rate between the New Zealand dollar

and Japan’s yen is impacting on yards’ stock levels, but continuing steady sales of used economy, family and commercial vehicles are being reported.

Figures for imports of used passenger vehicles during September starkly contrasted to the previous month with sales exceeding imports by 2,984 units.

The amount of used imports last month was 8,683, which was down from the previous month by 3,450 units – or by 22.5 per cent.

Stock levels during September decreased to 21,693 from 24,677 in the previous month.

However, the level of unsold stock has increased by 4,879 units – or by 29 per cent – compared to levels recorded in September 2014 when total unregistered stock amounted to

specific car and then realise it is going to cost more than what you got for it to replace it.

“I tend to watch the prices in Japan like a hawk, especially the barometer vehicles. That country’s domestic market is fetching high prices while its new car guys are having a bit of a hard time because not many people are trading in new up there.”

Hall says the domestic market in Japan for second-hand cars is also of interest to importers in New Zealand.

“The competition for those cars is really fierce,” he explains. “Kiwis aren’t going to pay any more for the vehicles we replace sold units with. That’s the real rub.

“When we’ve run out of all the cars that we bought in August with the stronger dollar, they will get more expensive. It’s really tough during the crossover between the two.”

Cross-rate affects access to stock16,814 passenger vehicles.

Looking at the same period, average daily sales increased from 335 in September 2014 to 392 last month.

This means 57 more sales have been made each day over the past 12 months compared to those in 2014 for an increase of 17 per cent.

Year-to-date imports of used passenger vehicles came to 111,393 by the end of September with first-time registrations totalling 108,163 for a variance of 3,230.

Glenn Hall, of Croydon Motors in Henderson, Auckland, told Autofile the statistics reflect challenging times for importers.

“In general, it has been tough to buy cars over the past couple of months,” he says. “There was a big rush of sales in August and it has been a struggle to replace that stock.

“For example, you can sell a

Ken Mullarkey, of Far North Honda in Kaitaia, reports steady sales across the business, which specialises in a range of models – both family and commercial units.

He says the Honda Fit is the most popular car on the yard, while his stock levels of used cars are about 18-20 at any given time.

“We deal in trade-ins and imported,” says Mullarkey. “The cross-rate at the moment sets your expectations in terms of the maximum buying price you will go to.

“This is because, at the end of the day, that buy price will reflect through to your retail price.

“When the dollar was nearer to 90 against the yen, you were looking at things from a more ‘generous’ mind, whereas today – with it being around 77 – that level of cost makes you think very closely about what you are prepared to buy at.”

DAYS StOck iN NZ - USED iMPORtED cARS

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September 2014 — September 2015

September 2013 — September 2014

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