VOLUME 6 ISSUE 10 NOVEMBER 2015 “DOING THE BASICS” WILL MAKE YOU MORE MONEY FIND OUT ON PAGE 22 EV pioneer switches on to trucks E Auckland mayor Len Brown, president of Penske Transportation Group International Randall Seymour and chairman of Penske Automotive Group Roger Penske. Penske says ‘not at this time’ for NZ automotive G lobal automotive icon Roger Penske has not ruled out investing in the New Zealand automotive market, in the long term. Penske has interests including automotive retail, truck distribution, sales, parts and leasing and was an early investor in online vehicle sites. He is a motorsport legend, and owner of a number of teams, including the former Dick Johnson Racing Continued on page 3 INSIDE Import dealer to list? Industry backs Green move Familiar face returns to financier New player for Auction market 3 4 6 8 3 6 x-pat Kiwi engineer Ian Wright - co-founder of Tesla and founder of Wrightspeed - thinks much of the EV push is misdirected. While in Auckland in October for the transport fuels and fleet management summit, Wright took time from his schedule Ian Wright to speak to DIESELTalk editor Robert Barry. He believes that when the automotive world looked to develop electric vehicle solutions to save fossil fuels, the manufacturers asked the wrong question. “They didn’t ask, how can we save the most fuel per vehicle per year?” he says. Read the full interview with Wright in DIESELTalk, out Tuesday morning. Go to DIESELTalk.co.nz to subscribe. GLOBAL VEHICLE LOGISTICS NZ · JAPAN · AUSTRALIA · UK · EUROPE FOUNDATION SPONSORS AutoTalk acknowledges the support of our foundation sponsors: Vehicle Inspection NZ WEEKLY PASSENGER & COMMERCIAL VEHICLE AUCTIONS 2 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz NEWSTALK 2 Cheap to list? 2 Cheap Cars has confirmed it will be self-funded,” he says. “But is considering an Initial Public our goal is to become a multinaOffering for the company as tional.” it continues to grow – and looks The target market: Australia. beyond our shores. “In Australia we would like to be “It is something that is on the tain a position to make a big move ble in terms of our expansion,” said when the [so-called grey market] chief executive Eugene Williams. market opens there.” “At the moment it is a possibility.” He says despite the current Eugene Williams “At the moment the focus is on network the company has in New putting together a high-level management Zealand, there are regions where he sees team,” Williams explains, noting the hiring room for expansion. of former Autosure national sales manager 2 Cheap is about to open the doors on Darren Marmont as vice-president, and its first ‘new’ vehicle dealer – selling parallel that it is looking to employ a chartered acimported vehicles from Japan, in Greenlane, countant as chief financial officer. Auckland. He says the company has international Currently, there are only two publicallyaspirations, and that is where IPO funding listed dealer groups in New Zealand, Cowill be required. lonial Motor Company and Australian giant “Any further expansion in New Zealand Automotive Holdings Group. Penske says ‘not at this time’ Continued from page 1 Australian Supercar team. His automotive retail businesses, mostly under the New York Stock ExchangeListed Penske Automotive Group of which he is chairman and chief executive, make him one of the largest car dealers in the world. Penske was in New Zealand to open the South Auckland headquarters for Penske’s truck-focussed interests here. Asked AutoTalk if he was looking to expand into the automotive retailing space here, he indicated, not at this time, but wouldn’t rule out the possibility of doing it in the future. “If we don’t do well selling trucks out of here, we might have to look into cars,” he joked, to the applause of the crowd.” The purpose built facility is Penske’s largest New Zealand operation, and brings Penske Commercial Vehicles and Penske Power Systems under the one roof, including 90 staff. It will be home to Western Star Trucks, MAN Truck & Bus, Dennis Eagle, MTU and Detroit. “This represents a significant investment for the company, and demonstrates our commitment to dealers and customers in the region.” The new facility compliments Penske’s established Bay of Plenty operations. Penske’s business have a staggering foothold in automotive retail worldwide, representing over 40 brands through 341 franchises, mostly in the United States, United Kingdom and Western Europe. The Penske California dealer operation, Penske Motor Group, operates the world’s largest car dealership, Longo Toyota, which covers 50 acres. INDUSTRY SUPPORTERS RECOGNISED BY AutoTalk Magazine and autotalk.co.nz are published by Auto Media Group 8/152 Quay Street, Limited. P.O. Box 10 50 10, Auckland City, 1030. Ph. 09 309 2444. MANAGING EDITOR Richard Edwards 021 556 655 richard@automediagroup.co.nz PUBLISHER Vern Whitehead 021 831 153 vern@automediagroup.co.nz CHIEF REPORTER Robert Barry 022 0180 998 robert@automediagroup.co.nz SALES MANAGER Dale Stevenson 021 446 214 dale@automediagroup.co.nz OPERATIONS MANAGER Deborah Baxter 027 530 5016 deborah@automediagroup.co.nz IDENTICAR MANAGER John Stephens 027 530 5023 john@automediagroup.co.nz Auto Media Group Limited makes every endeavour to ensure information contained in this publication is accurate, however we are not liable for any losses or issues resulting from its use. Annual subscription: $72 + gst ($82.80) Printed by: Alpine Printers. autotalk.co.nz dieseltalk.co.nz autotalk.com.au carandsuv.co.nz CAR & SUV identicar.co.nz AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 3 NEWSTALK Industry backs electrifying proposal A proposal to give a tax break putting clean cars within to businesses that acquire almost everyone’s reach electric vehicles for staff in just a few years,” Genuse has found favour within the ter explains. automotive industry. Transport minister Green Party transport Simon Bridges has been spokeswoman Julie Anne a proponent of electric Genter, and co-leader vehicle technology, but James Shaw, are to introhas been criticised to duce a private members his hands-off, market- Eric Pyle David Crawford bill into parliament that will led approach to the exempt electric vehicles from Fringe issue. Benefit Tax. It is expected he will release further “Tax breaks for businesses who incentives for the purchase of the vehichoose electric cars provide a major cles before the end of this year. cash incentive to switch to a clean, Eric Pyle, chief executive of Drive efficient fleet, cutting the upfront cost Electric, is giving his support to the sugof an electric car by up to 36%, with gestion. further savings over the life of the car,” “We welcome initiatives that are Genter says. going to increase the uptake of EVs, “We’ll also give tax breaks to comand FBT is an option that has been panies who provide their staff with discussed for some time,” said Pyle. public transport passes instead of free “I think it would be a signal from the carparks. government of the day that they are “By dramatically increasing the behind the uptake of this technology.” number of new electric cars in New Pyle notes it would increase business Zealand, we’ll pave the way for a large confidence in purchasing such vehisecond-hand market for electric cars, cles, but says it is only one of a broad rates. Fast Approval. Competitive Shift your sales into top gear. To find out how we can help drive more vehicle sales for your business talk to us on 0800 269 100 or visit www.udc.co.nz 4 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz spectrum of things that can be done. Pyle says his organisation is working on a ‘road-map’ of initiatives that can assist, from government moves like this, through to charging infrastructure and parking. They want to see all players working together to avoid duplication of services. While the FBT cut would save businesses money, he notes not all EV buyers are looking simply at the bottom line. “For some it will be the cost reduction, some it might be parking, others charging infrastructure,” Pyle says. “We need to cater to all these people and their needs. “The minister is talking about releasing a package for EVs this side of Christmas, let’s wait and see what the government comes up with.” Motor Industry Association chief executive David Crawford says his group is well behind such a policy and has told the government so. “The MIA has been on the public record that if the government wants to increase the uptake of plug-in electric vehicles, an FBT holiday is a good option,” Crawford says. “Currently 70% of new vehicles are purchased by businesses, so assisting them could make a real difference.” Crawford says the premium price of plug-in options is a constraint for fleet operators, and this could make a difference. He says indications from Treasury are that such a move is difficult as it may open the doors to others seeking tax relief. “But we have a precedent here, as theses vehicles already have an exemption from Road User Charges until 2020,” he notes. “The government should seriously look at this as an option.” NEWSTALK MTA finance company on the cards? T he incoming president of the Motor Trade Association has suggested that a co-operative style finance company is required in the automotive industry, and that the association may move to assure one exists. National president Dave Harris issued a statement last week noting the association was keeping a ‘watching brief’ on the sector, in light of recent mergers and consolidation in the industry. Harris particularly noted the current moves by both Turners Limited and Heartland to take a stake, or in the case of Heartland take-over, “MTA would consider alternatives to recreate the concept for the benefit of its members” – Dave Harris. Motor Trade Finance, which for much of its history has been owned by loan originators – vehicle dealers. “Motor Trade Finance has played a very important role in the auto industry for 45 years as a co-operative style finance company, owned by the companies that originate the finance contracts,” Harris notes. “If shareholders de- cided to sell out to corporate interests, which they are entitled to do, it would certainly change the dynamics of the finance sector. “Our understanding is that there is at least one formal due diligence process underway with Heartland, while Turners continues to accumulate shares.” As many of the MTF originators are also MTA members, Harris says MTA will need to ensure its members receive guidance on the options they have. “We will carefully watch as the Heartland and Turners corporate plays take their course and should the MTF cooperative model disappear as a result of the current market activities, MTA would consider alternatives to recreate the concept for the benefit of its members” he explains. SPECIALIST SERVICES Members: Free: Consumer complaints advice Disputes Tribunal assistance Employment law advice Technical consultation Compliance assistance Discounted rates: Exhaust Emission certificates Exemption applications Statements of Compliance Trade Services: Statements of Compliance Exhaust Emission certificates Exemption applications Unrivalled technical services to the used import vehicle trade on a user-pays basis. Contact: Malcolm Yorston on 0800 046 842 or 09 573 3058 Email: malc@imvia.co.nz AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 5 NEWSTALK Familiar face returns to UDC Y ou can scratch the word ‘new’ when referring to UDC’s new chief executive Wayne Percival – he has been involved with the brand since the early 1990s. AutoTalk sat down this week to talk with Percival on his return to the marketleading brand. AutoTalk: You have been with UDC, and the wider ANZ group, for a long time. Wayne Percival: Yes. I started with UDC as a Dealer Account Manager in 1993, initially in the Hawkes Bay area. My next two roles were as Business Development Manager and National Sales Manager for the motor vehicle and agri part of the business. I was General Manager Esanda FleetPart- ners before it was sold to a private equity firm, and then moved to Esanda in Melbourne where I spent two years setting up a used vehicle finance operation, before running the Victoria State Region. AT: You then returned to New Zealand? WP: Yes, I returned to work for ANZ in Business Banking, My most recent role was looking after the MortWayne Percival gage Broking business and Mobile Mortgage my experience and try team for ANZ. something different - so AT: Is this a role you have seven years and various wanted for some time? roles with ANZ were fanWP: The opportunities tastic. have been there to come This opportunity came at back, but the timing wasn’t the right time I’ve always right - I wanted to broaden had a passion for finance, and even though I haven’t worked for UDC for some time, I’ve kept in contact with what’s been going on in the business. AT: With your banking experience in mind, how well Continued on page 7 APPLY FOR A 2016 MITO SCHOLARSHIP Passionate about learning and want to further your career? MITO is offering up to 48 scholarships across five categories, totalling up to $50,000 in value. • • • • • Jodie, Graduate scholarship recipient Kick Start Business Skills Clyde Cunningham QSM Memorial (Hawke’s Bay only) Graduate Drilling Applications are now open! Visit mito.org.nz/scholarships for more information. Applications close 18 December 2015. 0800 88 21 21 | mito.org.nz 6 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz Julius, Business Skills scholarship recipient NEWSTALK do you think New Zealand dealers are doing at selling finance? WP: I think there’s always room for improvement -we work with dealers at both ends of the scale. We see dealers who run fantastic systems, run fantastic businesses and are very successful. We also see other customers that do well, but could do better in this area. Some acknowledge that, but some still see Finance as the ‘and’ instead of part of the overall sales process. AT: Is it your team’s role to convince them otherwise? WP: Yes, most definitely. At the end of the day, we should be an education provider. AT: Are you happy with UDC’s share of the distributor – or ‘white label’ – finance market? WP: We’ve seen healthy growth and really value the distributor relationships we have. We want to do more, but I’m conscious that we need to continue to earn the right. That’s why we are re- ally focused on how we help deliver sales and profit for our business partners. AT: We are seeing a lot of growth-by-acquisition in the finance market at the moment. UDC has not so far become involved, but is that something you may look at? WP: Opportunities do come along. We’ve been very successful in growing on our own merit without having to purchase, and believe we can continue to do that in both new cars and used. AT: Is the reduction in players a good thing for the market? WP: Some of the smaller companies have to buy to get scale, or they have to buy to get the technology. We’ve had massive growth in the use of technology. The UDC Live system has been groundbreaking, and competitors will try to catch up to it. We are working on the next phase to make sure we stay ahead of the game. AT: What is UDC Live? WP: UDC Live is our front end operating system which Turners to continue to work on MTF stake T urners Limited has announced it will continue to look at acquiring additional shares in financier Motor Trade Finance. That is despite failing to hit its 20% target. Turners Limited chief executive and director Paul Byrnes, says some discussions would continue with MTF shareholders who are no longer originating loans, but are required to hold shares in MTF while loans originated have some balance outstanding. “We are prepared to consider taking over existing obligations or acquiring receivables from MTF members in ‘run-off’ to enable them to sell their holdings,” Byrnes explains. “However, our main focus now will be to work with MTF management, board and shareholders to explore any opportunities and value we might be able to bring to the business”. provides dealers with reporting, online applications and access to their wholesale facilities in real time. AT: Your Australian equivalent – Esanda – was recently sold off by ANZ. Is there a risk of that happening here, and does it impact UDC in any way? WP: UDC is a separate entity, and look, the bank has businesses that it buys and sells, or acquires, but no, it is not on the cards for UDC. AT: We have recently seen a big push in no deposit and low-interest finance in the new vehicle industry. Do you think this will continue? WP: We know what finance offers work and what doesn’t work. One of the great things about UDC being as big as we are and being around as long as we have, is data. I think most people know now that there is enormous value in data, It’s how you utilise that data that counts when putting these offers together. AT: Are you pleased with the team you have returned to? WP: Yes. Many of the team have been around a long time and are experienced industry operators. I’ve had some really good feedback from distributers and dealers. I employed some of them 10-11 years ago, and have watched their careers grow with UDC. AT: Have you had a chance to get out on the road and meet some dealers? WP: Yes, I do get out on a regular basis. I am focused on meeting a diverse range of customers across all divisions of UDC and have enjoyed reconnecting with many of our customers I had worked with previously. 6 POWERFUL REASONS WHY YOUR STAFF WOULD BENEFIT FROM ATTENDING ANDREW MEARNS’ WORKSHOP 1. 2. 3. 4. 5. 6. Ensure your Team has a full understanding of the psychology of selling, sales techniques and selling fundamentals. Turn shoppers into buyers by controlling your selling situation. Structure transactions for more gross profit. Everybody will have the mental resilience to achieve no matter what adversity comes their way. Proven sales strategies take only a few weeks to master, however the return on investment cannot be exaggerated. Ensure they have Mind Mastery techniques to optimise consistent sales figures. Visit Continued from page 6 http://www.andrewmearns.com.au/sales-audit/ for a Free Sales Audit of your Team (valued @$2500). Call: 021 932 400 AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 7 NEWSTALK New auction player to build links with trade W ell-known general auctioneer Grays has entered the automotive market, and has plans to work with the trade as it grows. The company has traditionally focussed on stock liquidation and finance The New Zealand Automotive Industry’s software provider of choice company repossessions of electronics stock – but is ramping up its online presence, with a firm focus on the automotive industry, through its GraysOnline brand. Grays’ automotive specialist Mike Edmonds believes that the company has the right strategy, concentrating on commercial interests like vehicle importers. 35 Years 3,000 Clients 10,000 Users can’t be wrong! Automotive & Industry IT ADP Autoline: The world’s most popular Dealer and Distributor Management System from the world’s largest provider. NZ’s most installed and fastest growing Dealer and Fleet Management System with over 400 installations. DEALER MANAGEMENT IT NZ’s acclaimed Workshop Management System runs 50% of independent motor industry service and repair businesses. AUTOMOTIVE SERVICE IT TSI Group’s own computer hosting and cloud services division, and NZ’s largest automotive industry specialist IT services company. proudly exports Kiwi know-how and expertise to the world with clients in 24 countries. Contact: Paul Wilkinson Paul.Wilkinson@tsinz.co.nz 09 5832482 0274475513 Edmonds says that by focussing the automotive offering on webbased auctions, there’s plenty of space in the market. “It wasn’t so much that we saw shortfalls as the current players are very good at what they do,” he says. “What we believe is that our purely online platform provides auction buyers with a very comfortable bidding process over the space of five days for each sale and offers our vendors a quick and effect new channel that they can grow their sales figures through. The focus will be on no-to-low reserve auctions. “The beauty of when we run unreserved sales starting at $9 is that they generate both a lot of excitement, excellent results and helps us to stand out from the crowd. “It attracts a lot more bidders to participate in the sale, and if someone is leading the bidding on a car, no matter at what value, they are Continued on page 9 8 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz NEWSTALK front of and this will help us build the foundation of this new division. “One-on-one relationships are the keystone of this venture for us,” Edmonds says. “Wholesalers are passionate about their businesses, and we are excited to help them grow them. “I haven’t met anyone in the auto industry yet who doesn’t love cars if you love talking cars, and you love selling cars then I think we’re going to get along like a house on fire.” A listing from Grays’ Australian site. Continued from page 8 already seeing themselves behind the wheel and imagining it as theirs,” Edmonds explains. “At the end of the auction this emotional investment can really draw out some extra bids and in our experience, maximises the returns for the vendor. He says they have had a good response from the trade to date. “We’ve had a good response generally with a lot of people keen to get involved,” says Edmonds. “The only barrier has been the current situation with the difficulty some wholesalers are having in replenishing their stocks from Japan and having vehicles on hand to send us. “Being a new division amongst our GraysOnline brand is exciting, and the challenge is to turn vendors who are keen on trialling our platform and seeking its benefits, like the vendors of our Australian branches, who are now selling over 1500 motor vehicles per month combined through them,” he notes. Over the coming months, Edmonds says GraysOnline will concentrate on creating solid partnerships with the trade. “The next six months is all about building relationships with potential partners in the market and not so much about the numbers,” he says. “The industry is relationshipdriven, and we need to be continually in front of prospects to update on how we are going and what results we have achieved. The goals will be focused on how many prospects we can get in Port Calls Morning Midas V6 Morning Miracle 21 Tokyo Car V 5 Morning Midas V7 Osaka 3 Nov 15 Nov 2 Dec 16 Dec Nagoya 4 Nov 16 Nov 3 Dec 17 Dec Yokohama 5 Nov 17 Nov 4 Dec 18 Dec Auckland 20 Nov 5 Dec 19 Dec 4 Jan Wellington 26 Nov 8 Dec 26 Dec 7 Jan Lyttelton 27 Nov 7 Dec 26 Dec 6 Jan PORT TO DOOR SERVICE INCLUDING: MPI Border inspection NZCustomsclearance Odometercertification DeliveryNationwide DigitalPhotographyfor Insurance priorsalesinNZ www.armacup.com AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 9 LAUNCHEDTALK Superb opportunity S Nick Wheeler, Kelly Ware and Steve Owens reviewing results. “We have become A more profitable, professional, and efficient unit” “We moved to Provident after meeting with Steve Owens. His industry knowledge and ability to help both us and our clients was impressive. He is a man at the top of his industry, but always available to help with any information and advice. Steve has helped our company in evolving our Finance and Warranty department into a top performer. He flew to Christchurch, interviewed all the candidates, and managed the training of our new business/ finance manager. Wheeler Motors has become a more profitable, professional, efficient unit. And our clients are reaping the benefits. To anyone who doesn’t know Steve, I would personally vouch that 15 minutes of your time would be well spent sitting down with him, explaining your business model, then let him show you how to get better.” – NICK WHEELER, Dealer Principal, Wheeler Motors Introduce the Provident Profit Factor into your business, talk to Steve Owens or visit www.providentinsurance.co.nz koda New Zealand is on a strong growth path. Last year it sold 850 cars, this year it will cross a thousand, and next year is targeting 1300. New models are one-factor driving sales, with the company getting a good push out of the launch of the new Fabia earlier this year, but so is momentum. “Fabia clearly attracted new buyers to the brand, and our market share spiked,” says Skoda New Zealand general manager Greg Leet. “And that is what we are expecting with the new Superb.” More cars on the road means more buyers. “When you start to get some mass out there on the road, people become more aware of the brand,” Leet says. “People become more aware of what Skoda offers.” The new Superb, launched last month, moved just short of 100 units last year, with Leet expecting that to double to 200 – 60 sedans and 140 wagons – next year. It is hard to argue the Superb is one of the best value vehicles on the market, with pricing aligned to take on the Ford Mondeo, which at the opening price point has more power, but less spec. Leet is insistent cars like the Mondeo – mainstream brands – is where the Superb’s competition lies. “Our competitor set is mainstream vehicles,” he says. “Often you will see the Superb compared to vehicles far higher up the market and price range.” The range opens at $44,900 for a 1.8-litre petrol 132kW TSI unit with a seven-speed DSG transmission, next is a 2.0-litre 110kW TDI and six-speed DSG for $50,900, a 2.0-litre 140kW TDI with all-wheel-drive is next for $57,900 and the range tops out with a 2.0-litre 206kW all-wheel drive with a sixspeed DSG for $59,900. They may call them sedans, and they look that way, but are in fact lift-backs, eschewing the old models special split-fold tailgate. Wagons are available on all levels, at a $3000 premium. Specifications are strong, with even the base model getting such niceties as an Alcantara and leather interior, heated front seats, dual-zone climate control, parking sensors and reversing camera, cruise control and 18-inch alloy wheels. Move up to the 140kW TDI or 206kW TSI and specification moves up to a full leather interior, 19-inch allow wheels, ‘Kessy’ keyless entry and start, adaptive cruise-control with a traffic jam function (206kW only) and a Drive Mode Select system. Continued on page 11 10 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz LAUNCHEDTALK Continued from page 10 All models have the usual suite of safety features, with each model getting some form of intelligent safety technology. All cars get a ‘Front Assistant’ with autonomous braking, lane change warning and assist, and blind spot warning. The Superb is one of the first cars launched in New Zealand with both Android Auto and Apple Car play fitted as standard, both get LCD screens and navigation - a larger, higher specification unit in the top model. Leet says the wagon will do 70% of the volume on the new model, while the $44,900 vehicle is likely to bring new business to the brand.” “I think the $44,900 car is going to be a great opportunity, and interest is very high in the 206kw car, but I think that is because it is a new model and the top model<‘ he explains. “Traditionally diesels are our highest selling models, and I do not see that changing.” AutoTalk drove only the 140kW TDI at the Superb’s recent launch, and came away very impressed. The car is impressive for its roominess, both front and rear, almost limo-like in legroom for those in the back. Build quality feels as good as anything Audi can offer, even if you can see the price difference in some of the less-important plastic surface choices. The ride is firm, but not uncomfortable, and steering light and relatively direct for a big sedan. The car lacks some of the feel of the Mondeo, but is still a strong drive. The all-wheel-drive traction was appreciated when hit by a strong Auckland spring squall, although the wipers on our test model seemed a little flimsy. Customers ‘Gold Bars’ Leet was quick to address the ‘elephant in the room’ at the launch, the Volkswagen Group’s emissions issues. A small number of Skodas sold here have been pulled into the issue, Leet says. “It has been a trying time, not only for Skoda, but all the European Motor Distributors brands.” “What is really important for us is we communicate with our customers,” he says. “There will be a fix, and we will get through this.” “What we have committed to do is reset the bar on what the customer recall experience is for customers,” he claims. “It is really important they are treated like gold bars.” Out of government One disappointment of the last year for the Skoda team has been the brand no longer being in the ‘All of Government’ fleet programme. Skoda has had significant success with government fleet business, particularly with Octavia, but in the latest round rather than working on its own, the brand took part in a group tender across all of the European Motor Distributors brands, which was not successful. Leet indicated, however, that the brand is still doing business with some government organisations and had been moving a number of units before the previous tender ended. www.myfinance.co.nz call 0800 385 385 We’re in this together AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 11 PEOPLETALK MITO scholarship drives performance passion J ulius Bloem knew pretty quickly he wanted to be a mechanic - but not just your average spanner spinner, one that made things go fast. Now Bloem is a motorsport technician and workshop manager at a workshop with a name synonomous with pace and performance Possum Bourne Motorsport. The go-fast garage started by the late, great Kiwi rally driver Peter ‘Possum’ Bourne is just a stone’s throw from Pukekohe Park Raceway and the former MTA apprentice of the year couldn’t be more at home. The 22-year-old now leads a team of seven, in an industry he loves. At school, Bloem wasn’t sure what he wanted to do. But with passion for cars, he took part in MITO’s StartUp programme, which enabled him to spend one day of the school week in an automotive workshop. “It was then I knew I wanted to be a mechanic, working specifically on performance and race cars,” he says. Bloem left school at 18 and started work at a highperformance car specialist, who offered him an apprenticeship. With his apprenticeship complete, Bloem gained a National Certificate in Motor Industry (Automotive Electrical and Mechanical Engineering) (Levels 3 and 4) Light Vehicle. In 2013, he won the MTA 12 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz Apprentice of the Year, the prize package including a trip to Sydney for some handson experience with a V8 racing team in the final round of the 2013 V8 Supercars – with New Zealand Supercar driver Greg Murphy calling him to let him know he’d won. “My Sydney experience was awesome. I assisted in some panel repairs caused by the tight street circuit, as well as maintenance of the car and pit crewing. Greg’s dad, Kevin, was my personal tour guide – it was an amazing experience,” says Bloem. He won a 2015 MITO business skills scholarship that enabled him to enrol in MITO’s business skills training programme. Applications for the 2016 MITO scholarship programme, including 20 business skills scholarships are now open at mito.org.nz/ scholarships, and close on December 18. ards Richard Edw DIARYTALK THE DIARY AutoTalk's itor managing ed e th looks at by on month gone nz AutoTalk.co. October 8 t to you by Proudly brough October 1 October 2 Ford’s free fix for Focus Customers fear mechanic ‘rip-offs’ Ford voluntarily recalled its pre-facelift Focus over a possible drivetrain defect – but said it wasn’t, officially, a recall. The problem involved the car’s halfshafts potentially failing when the vehicle accelerated from a standstill. Ford New Zealand spokesman Tom Clancy said that 1146 Focus owners would be notified by mail to contact an authorised dealer to have the halfshafts replaced free of charge. Almost four out of five – 77% – of New Zealand motorists said they are wary of being ripped off when they take their vehicle for a service. That was one of the findings from a new survey by consumer research and ratings company Canstar Blue, which also found that 63% of Kiwis paid for vehicle repairs or maintenance they were not expecting. MIA welcomes ACC consultation A new round of consultation was announced on how Accident Compensation Corporation levies are calculated – including to the controversial risk rating system. Risk rating, introduced for the current 2015/16 levy year, worked well for the majority of vehicles but was plagued with errors for some makes and models due to the inflexible nature of the ACC model used. Proposals included to reduce overall vehicle levies by 33% ($66.99 average reduction, reducing the petrol levy by 1.2 cents per litre and the motorcycle safety levy by $5.00 sourced from Japan biosecurity inspected in New Zealand. The change came as part of a consultation process over a number of ‘import health standards for cars, trucks, tyres and machinery. BT-50 squares off Mazda New Zealand managing director Andrew Clearwater was adamant he wants to focus on the 60% of the light commercial market that is not owned by Ford and Toyota. Clearwater said that Ranger and Hilux account for 35% of the current new vehicle market for pick ups and he told the media that Mazda is not interested in entering the battle between the two brands. “Excuse the profanity, but there is a shit fight at the top of the market, and we don’t need to go there,” said Clearwater. MPI looking to end NZ inspections for most Japanese cars The Ministry of Primary Industries looked to remove the ability to inspect used vehicles New engines and equipment upgrade for Maserati Ghibli New Zealand-bound 2016 Maserati Ghibli models will benefit from a range of new Euro 6 compliant engines and a host of equipment upgrades. The entirely new range of V6 petrol and diesel engines for 2016 meet the new Euro 6 emission standards and cut fuel consumption by up to 12% says the Italian manufacturer. New safety features include blind spot monitoring, cross path warning and auto dipping door mirrors. October 9 Kiwis place second in Mercedes golf final A team of New Zealand Mercedes Benz customers finished second in an international golf tournament organised by the brand. The 2015 MercedesTrophy World Final was held from October 1-6 at the Schloss Nippenburg and Solitude Golf courses in Stuttgart, Germany. New look coming for Holden dealers Holden dealerships across the country will be receiving a makeover in the next few years, following plans to do the same across the Tasman. The current Holden dealership ‘corporate identity’ has been in place since the mid-nineties. The overhaul is likely to include interior and exterior developments, as well as other changes to the customer experience. The company has already been through a programme updating dealer websites to a consistent corporate look. October 12 Macquarie secures Esanda for $8.2 billion Macquarie Group won the long running and highly competitive process to acquire the Esanda dealer finance portfolio from ANZ for $8.2 billion. ANZ’s New Zealand finance arm, UDC, is not part of the deal. Nissan partners with Piha Nissan New Zealand launched a partnership with the Piha Surf Lifesaving Club. The deal includes the provision of three eye-catching Navaras, specially set up for the job. Club president Peter Brown told TVNZ that the fleet will dramatically speed up lifesaving missions. Toyota again takes out ‘most valuable car brand’ title Toyota once again earned the title of the most valuable automotive brand in the world, according to Interbrand’s 2015 Best Global Brands annual report. The company’s ranking jumped to number six, up two spots from the 2014 report. New peer-to-peer lender to target vehicle finance Another peer-to-peer lending platform is set to enter the market, with vehicle finance one of its initial targets. The Lending Crowd, closely linked to Finance direct and lead by Finance Direct shareholder and boss Wayne Croad, has received its license from the Financial Markets Authority. Group action launched in emissions scandal A Wellington-based law firm called for interest in a potential class action against the Continued on page 14 AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 13 DIARYTALK t to you by Proudly brough Continued from page 13 Volkswagen group – but for the brand’s local boss, the focus continues to be on the customer. Law firm Gibson Sheat hit media, calling for owners of affected vehicles to join the legal action, potentially seeking compensation for what Gibson Sheat suggests will be a loss of vehicle value. October 14 Volvo jumps ship, backs Masters Games The World Masters Games in April 2017 promises big things: 25,000 athletes from 100 countries for 28 sports at five venues in 10 days. Volvo Cars NZ has signed on as official vehicle partner to the event. October 15 Wannabe car dealers cause Invercargill headache Invercargill’s roadside car sellers are set to be kicked to the curb. The city’s busy Tay Street has become a problem for motorists, business owners and authorities – and hasn’t impressed legitimate local car dealers. Parked vehicles being hawked by unlicensed wannabe car dealers cause traffic problems with people doubleparking to look, and some cars are parked for days at a time. October 16 Business dispute beginning of the end for Car Giant The first liquidators report into the failure of Wellington mega- Hunter moved to the new role of chief operating officer with Turners Group, which until just over a year ago was Dorchester, a lender and insurance company. dealership Car Giant has been released. According to the report the bulk of the money outstanding is owed to the Inland Revenue Department, nearly $200,000. The report said a business dispute was the beginning of the end for the ambitious project. Dealer staunch on value of partnerships The relationship between a member of parliament and a car dealership came up for discussion in the media – but in an interview with AutoTalk the chief executive of the business said the partnership makes good sense. AutoTalk had already noted the partnership between National MP Judith Collins and Colonial Motor Company-owned South Auckland Motors, which has seen ‘brand ambassador’ Collins drive around in a dealer-provided Peugeot 308, sign written in support of the Papakura Community Crimewatch. Collins was also part of the recent opening of the new Southern Autos showroom. Smith returns to Porsche brand Former Porsche New Zealand general manager, and former head of Sime Darby’s NZ distribution operations, Grant Smith, returned to the sports car brand. Smith has been appointed to the role of general manager of Porsche Centre Hong Kong and Macau with immediate effect. The company, known as Jebsen Motors, is the representative of the brand in the two Chinese territories. October 20 Joint effort lands Ram pick-ups October 19 Big American Ram pick-ups are set to roll onto the market courtesy of a new venture put together by well-known industry identities Ryan Walkinshaw and Neville Crichton. Recognising this, a handshake between Crichton, owner of Ateco Automotive, and Walkinshaw of Walkinshaw Automotive Group sealed a deal to start American Special Vehicles, selling right hand Rams in Australia and New Zealand. Toyota adds NZ cars to airbag recall October 21 Toyota added 7340 more vehicles to the recall roster due to faulty Takata airbags. Toyota New Zealand had already called back around 40,000 vehicles due to faulty airbag components. Worldwide, Toyota has six millionplus cars under recall. Models added were Yaris, Corolla, Avensis and Picnic. Auction boss takes on broader role Turners Auctions chief executive Todd Hunter is set to take a broader role with the firm’s parent. 14 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz New BMW MD won’t predict luxury car sales winner The new BMW New Zealand Group managing director Florian Renndorfer won’t predict which German automotive brand is going to win the race for top luxury car sales this year. The German native has been in the top job at the New Zealand national sales company representing the Munich-based manufacturer for more than eight weeks. Total cost of ownership tool launched A new online tool has been launched to assist buyers – particularly business fleet operators – find the differing costs between fleet options. Commissioned by the Energy Efficiency and Conservation Authority, and launched this morning by transport minister Simon Bridges at the New Zealand Transport Fuels and Fleet Management Summit, the tool is aimed at ‘demystifying the cost of running an electric vehicle.’ Minister strongly backs EVs; notes biofuel will play role Minister of transport Simon Bridges reinforced his love of electric vehicles at a speech in Auckland, also noting the need to find other fuel options in the meantime. Bridges launched a fleet cost of ownership tool at the Transport Fuels and Fleet Management Summit – but also discussed the broader introduction of EVs and other oil-consumption reducing options. More used EVs as UK becomes an option Used import electric vehicles will continue to play a significant part in the roll out of the vehicles in New Zealand according to the industry’s association. Imported Motor Vehicle Industry Association chief executive David Vinsen questioned transport minister Simon Bridges at the New Zealand Transport Fuels and Fleet Management Summit in Auckland about the opportunities for used EVs. October 22 Brazen thief in daylight Jag jack A Jaguar XFR worth $165,000 was taken in broad daylight from an Auckland car dealer on Monday. Continued on page 15 DIARYTALK Continued from page 14 The brazen heist was likened to the movie Gone in 60 Seconds, about a luxury car theft ring. A hightech device was used to unlock the car, police believe. CCTV footage from Beacham Independent Jaguar and Range Rover in Penrose shows a man walk up to the silver Jag with his hand in his pocket. October 23 Tribunal reiterates concerns The Motor Vehicle Disputes tribunal released its annual report, highlighting concerns from cases over the last year. The Tribunal received 258 applications this year, 36 more than last and delivered 154 decisions; six more decision than last year. Of the applications received and heard 130 were decided on the basis of the Consumer Guarantees Act, 20 under the Fair Trading Act and four applications resulted in orders transferring the application to the Disputes Tribunal. October 26 Five star flood for SUVs Seven vehicles were been award five-star ANCAP safety ratings. Among them was Toyota’s new Fortuner, the Ford Everest SUV and Volvo’s new XC90. The Australasian New Car Assessment Program (ANCAP) has also given the updated Ford Ranger MKII, Toyota LandCruiser 200 Series, Volkswagen Passat and Lexus’s IS five stars. Northland’s EV community charges ahead The thriving Northland metropolis of Kaiwaka is proving its place as one of the north island’s most electric destinations – with ChargeNet’s first New Zealand fast charging station. Kaiwaka – known for its year-round light show – is a perfect stopover for a top-up for electric vehicles, with the ChargeNet station taking pride of place at the local Four Square. gesting importers begin to take note of the incoming rules around Electronic Stability Control, with the first deadline fast approaching. From March 1, 2016, all MC class vehicles – SUV and offroad type passenger vehicles with four wheel drive and less than nine-seats including the driver. There are a number of other conditions vehicles in this class meet. October 28 VW dealer sponsors Wellington Marathon The Gazely Volkswagen Wellington Marathon has been a major event in the capital for 30 years. Event manager Michael Jacques is buoyed by the new partnership. “The Gazley Volkswagen partnership is pretty exciting for us,” says Jacques. “It gives the event added security and a stable base from which to do some long term planning and promotion. October 29 Man sold his own car – twice The Commerce Commission is investigating a company that sold a customer the same car – twice. Viliami Malungahu bought a Toyota Estima last year from Kasanita Management, which allows people in New Zealand to buy cars for family members in Tonga. Turners gets 7% in MTF move Turners Group Limited received acceptances for just short of 7% of Motor Trade Finance as part of its move to acquire 20% of the company. Turners made an offer to ordinary shareholders of $1.15 per ordinary share. The offer closed on October 17. Turners Limited announced it will continue to look at acquiring additional shares in financier Motor Trade Finance. Clock ticking on first used-car ESC implementation The Imported Motor Vehicle Industry Association is sug- All the Auto Industry HOT NEWS every day as it happens on www.autotalk.co.nz Subscribe online for FREE twice weekly updates direct to your email Dealers arrive at an earlier Autosure golfing event Dealers to hit course with Autosure D ealers, and members of the trade, will again be hitting the greens with the 2015 running of the Autosure Annual Golf Event next Thursday. This year will be the 22nd running of the event. A long-running fixture on the industry calendar, 124 participants from within the car and finance industry will tee off at the Pakuranga Golf Club. A special guest this year will be Autosure-supported drifter Curt Whittaker. Find out how VTNZ provides independent Pre-Purchase Inspections, Entry Certificates, Warrants of Fitness and more across New Zealand Visit www.vtnz.co.nz or call 0800 88 88 69 today AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 15 INDUSTRYTALK Crawford’s Case CRAWFORD’S CASE brought to you by By David Crawford, CEO of the Motor Industry Association of NZ (Inc). By David Crawford, CEO of the Motor Industry Association of NZ (Inc). MARAC, a division of Heartland Bank Limited. Consultation season in full swing T he MIA, like the IMVIA, MTA and the AA, has been active in responding to a number of government consultation documents and discussion. The issues canvassed by government were ACC levies, review of the NZ engine fuel regulations, import biosecurity measures and promotion of plug-in vehicles. Expected before Christmas is round two of ACC vehicle risk rating, and a discussion document on the review of the Vehicle Dimensions and Mass Rule. In a first for the ACC motor vehicle levies, ACC has usefully broken its consultation on levies and vehicle risk rating into two parts. During October, the MIA responded to proposals on the overall levy and the methodology to risk rate vehicles. The MIA, along with others, supported the 33% proposed reduction in vehicle levies, the reduction in the ACC component on fuel excise and consideration on putting a part of the vehicle levy for diesel vehicles on RUC (road user charges). However, as readers of this column will know, the MIA has been particularly critical of the way in which ACC has risk rated vehicles for the 2015/16 levy year. We have been vocal on improvements we believe need to be made to improve the methodology for the following year. We wrote to the minister in July and met with her in August to make a case for changes. We were blunt in our assessment of the scheme as implemented this year, and demanded changes be considered and consulted on for the 2016/17 year or else we would withdraw our support for risk rating. The MIA remains of the view, if done right risk rating is useful. If done wrong, it is not helpful. To give the Minister credit, she and her Board have included most of the suggestions we sought. The two most critical improvements sought were tightening the rules around the use of the total secondary safety index data (TSSI) and introduce model generations to separate older and new generations of the same model. Each newer generation has significant safety improvements on older generations, and risk rating needs to reflect this. As such we have supported most of the proposals included in the consultation documents by the Minister. The proof in the pudding though is in the eating. It is not until we see the revised vehicle rating bands that we will know just how much these changes will improve the credibility of vehicle risk rating. The bands will be consulted on over December/January. We await stage two consultation. Fuel Specifications MBIE sought views on a review of aspects of the Engine Fuel Specifications Regulations 2011. Consultation closed on Friday 30 October after a six-week period for consultation. The MIA compliments MBIE for leaving consultation open for six weeks as opposed to the government norm of four weeks. It permitted industry associations to seek views back from their membership. The MIA supported most of the changes proposed by MBIE except for two areas. MBIE sought views on whether the allowable limit for biodiesel should be lifted from 5% by volume to 7% by volume. The MIA has opposed this on advice from the Japanese Automobile Manufacturer’s Association (JAMA). Given the high percentage of used Japanese diesel vehicles in our fleet, we believe it is premature to increase the limits, the risk being potential for fuel systems to be compromised. Advice from the European manufacturers was also not to increase the limit. The 7% level in Europe was contrary to manufacturer’s advice. The other area of concern is the proposal to change oxygenate limits. The proposed use of up to 3% methanol as a means to achieve this is not supported by manufacturers. It can be done, but at the cost of wear and tear on engine components and decreased service intervals. Biosecurity MPI is consulting on changes to import controls for vehicles, with most of the changes targeting the risk of the brown marmorated stink bugs coming in from the USA. The MIA supports the new measures proposed by MPI, which mirror those imposed in Australia. Plug-in Vehicles – making the case for an accelerated uptake The Government continues to show heightened interest on promoting the uptake of what they call EV’s (electric vehicles) and which the industry more correctly calls plug-in vehicles. We understand the Minister of Transport will announce this side of Christmas a package to incentivise the uptake of plug-in vehicles. While the MIA has some concerns over government picking winners and the story behind why it is focusing on plug-in vehicles (a climate change initiative) there is no doubt in our minds that the NZ fleet needs to diversify its vehicle types for a range of reasons. I will pick up this theme in my column next month. Drive away with finance from MARAC marac.co.nz Provided by Heartland Bank Limited MARAC is a division of Heartland Bank Limited. Lending criteria, fees and charges apply. 16 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz heartland.co.nz INDUSTRYTALK VINSEN‘S VIEW The monthly report from Proudly sponsored by & chief David Vinsen A month in the life of… W e’re often asked: “What does a motor industry business association actually do?” This month, I thought I’d answer the question by detailing some of our recent activities…a month in the life of a motor industry business association. The IMVIA started life very much as a reactive organisation, fighting for the right to import used vehicles on a commercial scale... to open the door for used vehicle imports. Over the past 27 years, the role of the association has evolved into much more than that, but one of our core functions is still advocating for the wider used vehicle import industry…..in essence, keeping the door open. And to do that, we have to look much further ahead than we have had to previously, to identify future issues that have the propensity to limit or prevent imports. But we also have to do much more than that, as I’ll detail below. Here are some of the recent activities and issues we’ve been dealing with: Intelligent transport Almost every motor vehicle manufacturer is progressively introducing elements of intelligent transport functions into the design of their new models, and most national jurisdictions are working on the legislation that will be necessary to deal with these developments. ABS and ESC were just the start of intelligent transport features - the ultimate will be autonomous (self-driving) vehicles. We see IMVIA’s role as ensuring that the New Zealand industry is ready for any changes, and that the introduction of intelligent transport functions does not limit or prevent the importation of used vehicles. This could easily occur if, for instance, the radio frequency chosen for intelligent transport is incompatible with frequencies set aside for other uses in New Zealand. In such cases, used vehicles would be ‘prohibited imports’. We have been researching this issue for the past 18 months, along with MoT and other agencies. Earlier this year our policy analyst, Kit Wilkerson, attended the Asia Pacific conference on intelligent transport in China, and recently he participated in the International Congress in France, attended by thousands of delegates: engineers, designers, legislators and industry groups. We have met with the design engineers from a number of Japanese manufacturers, and are making good progress in acquiring knowledge, infor- See us first for... 0800 GO VINZ mation and key contacts. Trade delegations We are regularly visited by delegations from (mainly Japanese) businesses and interested groups, seeking information and introductions to the New Zealand market. Recent visits were from the government of Okinawa, researching the opportunity to develop their port for vehicle exports, and a delegation from JUMVEA (the Japanese Used Motor Vehicle Export Association, with whom we’ve had a long relationship), as well as from business groups. Australia We attended the AGM of AIMVIA, the new association representing the used vehicle industry in Australia. AIMVIA is just 12 months old, and has made excellent progress in establishing its leadership team, developing policy and representing their industry to government. IMVIA still provides services to AIMVIA under a commercial management agreement ACC safety ratings We have been actively participating in the combined industry group advising ACC on vehicle safety ratings for next year’s levies. Our role has been to ensure that the ratings for used vehicles are accurate, so that the levies (built into licensing fees) will be fair and correct. Tokyo motor show IMVIA’s technical services manager, Malcolm Yorston, attended the trade-only day at the Tokyo motor show, while on holiday visiting family in Japan. Our interest is in ESC fitment rates, as well as new vehicle specifications generally. Malcolm identified that almost every new vehicle, including heavy, has ESC fitted as standard, and most are incorporating some form of intelligent transport functions into their new designs. Electric vehicles (EVs) The minister of transport (and energy) Simon Bridges is driving the implementation of the government’s policy for the fastest possible uptake of EVs into our fleet; used vehicles, because of their price point, will be an essential element of the strategy to achieve the government’s goals. There will definitely be opportunities for the used vehicle import industry. MoT is leading the work on this issue, and IMVIA is actively participating in the working group, along with other industry organisations, local and central government departments, and electricity industry businesses. Specialists in Pre Shipment Inspecons Continued on page 36 JEVIC Authori se NZTA B d order Inspecti on Agency AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 17 MARKETINGTALK How do you use ‘lead reporting’? O ne of the biggest misconceptions about lead management is that it’s merely the tracking and recording of lead activity. That’s not lead management – its lead reporting. Lead reporting has its place but it’s just a means to an end. It helps you make decisions on your lead management process, but if it’s viewed in isolation it’s just digital noise. Even with a view to using lead reporting to drive improvement in the lead management process, it can become overwhelming. It’s all very well to preach that lead reporting should be used to make decisions, but how exactly can that be achieved? To start with, at AutoPlay we recommend to our customers that they identify a lead management philosophy (or multiple philosophies) to follow. Some examples of this are: • Target the approx. 80% of leads that enquire but don’t purchase from you • Focus on increasing the number of test drives • Target the 50% of test drive leads that don’t result in a sale • Focus on the marketing activity that generates the best conversion rates. Once your strategy is known it dictates what it is you want to get out of lead reporting. For example, if your goal was to ‘target the approx. 80% of leads that enquire but don’t purchase from you’, then this means that lead reporting needs to clearly identify who the 80% are – which in turn drives the lead management behaviour of ensuring all leads are captured, and all leads are updated with where they are at in the sales process. Matt Darby works for AutoPlay, which specialises in lead management tools that work on desktop and mobile devices. To find out more, call 09 361 1505. Identify Goals To drive this focus it means that lead reporting has three main goals: 1. It needs to identify whether all leads are being entered – this can be measured either by a count of the number of leads loaded to your lead system, or by comparing conversion to test drive and sales to your sales team or known benchmarks. It’s known that test drive conversion is roughly 40% and sales conversion is roughly 20%-25% (according to Deloittes and AutoPlay customer data). If sales conversion is showing at 50% it’s a sure sign not all leads are being entered. 2. It needs to identify whether all leads are being updated – this can be measured one of two ways, depending on the lead management system you have in place. You can track all the stages the lead has been through i.e. ‘awaiting action’, ‘meet and qualify’, and ‘test drive’. Alternatively you can also report on whether action has been taken - 18 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz eg ‘appointments booked and kept’. 3. It needs to identify whether all customer data is being captured – this can be measured by reporting on data quality. It’s impossible to communicate with the 80% of ‘lost leads’ if you have not accurately captured their contact details. Lead reporting will also reveal whether these things are getting done or not – which will help with training. At AutoPlay we have taken this a step further with an ‘automated daily health check report’. This report is emailed to the manager on a daily basis and identifies three key areas that ensure dealerships can target the 80% of ‘lost leads’ – scheduled and completed calendar appointments, updating the progress, and showing the number of leads loaded. KPIs With these three KPIs delivered to the manager every day, he or she can instantly see which sales people are sticking to the task, and which need some reminding. This saves time spent tracking this information down and helps management with one-on-ones with their sales team. Whatever your goals are for lead management you need to identify them in order to also identify the key outcomes you want to measure using lead reporting. Once you understand why you are looking at graphs and reading spreadsheets, it starts to transform the information from merely numbers into signposts, helping your dealership make decisions and drive performance. MARKETINGTALK Relevant best practices T here was a time when owner operators/DPs/GMs First, adopting other would take time out to regularly attend sales and dealerships best practices marketing benchmark courses, run by either business can improve efficiency and accounting or marketing service providers. effectiveness, but doing More recent thinking has thrown these gatherings under so isn’t the answer to the the spotlight and asked the question as to whether these challenges auto retailing faces, for four reasons: benchmarking best practices courses have any relevance in 1. Dealership efficiency is just the foundation for future inthe fast-paced and ever-changing automotive retail environnovations. ment. So just what is relevant by way of best practices in one 2. Copying competitors’ practices isn’t enough to stay dealership when compared to another? ahead of rapidly changing technology and consumer Some would say, not a great deal. Within the digital expectations. marketing space the onus is on each and every dealership to 3. Competition in this industry, historically local, is expandinitiate its own unique set of effective business practices, that ing geographically due to the acceleration of the online business model. in turn can be rolled out seamlessly by all key dealership people. 4. Best practices that work in some Peter Aitken areas, and with some management Think of the way the All Blacks peter@clearedge.co.nz teams, may be inappropriate elsewhere, play their particular style of rugby. On or 021-940 318 the afternoon of Saturday, October or other managements may be unable 31 at Twickenham their style of rugby to execute them. Second, dealerships need to think was good enough for them to post an historic back-to-back win, and become about who in the organisation is rethe first nation to win the World Cup three times. Their style sponsible for creating and championing dealership-initiated innovation. Some see this as being up to the dealer owner; of play is without peer. They do not rely on any best practice benchmark formula. others believe all employees need to see it as their role. But They do not rely on copying so-called best rugby practices neither approach seems complete. from other top rugby nations. Rather, they apply their own unique brand of rugby that is based on the cultural underBeyond those two issues around innovation, several other pinnings unique to the team, advanced player skill sets, plus areas emerged as major concerns, these being: years of individual player experiences. • There is a division between new car dealers, on the one It becomes very difficult for any other rugby-playing nahand those who do their own thing to differentiate them tion to adopt any AB best practice, as they do not have the from other dealerships selling the same brand, and on same rugby cultural heritage, or the crafted inherent player or the other hand those dealerships following what is laid coaching skills. Other teams often have to start from scratch down by the distributor/manufacturer. and initiate a style that best suits them. • Dealerships need to know what customer and vehicle With dealerships it is no different, there is no one style data they are responsible for, and when others are using or best practice that can magically provide an operational it with access to their information. solution to a particular dealership operation. • Dealerships need to better differentiate their digital and A recent article penned by J Ferron of Automotive News physical services from their competitors. entitled: ‘Helping dealerships go beyond best practices to • Dealerships must find ways to offset the continuing eronext practices’ highlighted the new way of business thinking sion of gross profits arising from selling over the internet. that could be put in place by dealer managers. • Customer relationship management is dead. The cusThe common goals being to put in place with innovative tomer now actively manages the relationships. business practices, boost profits, cut costs, simplify opera• It is possible for dealerships to leverage collaborations tions and satisfy consumers rising expectations. Arising with digital marketing suppliers, to help strengthen their from a series of US seminars over the past three years that brand images while protecting their customers’ data Automotive News and Ally have run for senior dealer mansecurity and privacy. agers, there is general agreement on the need to innovate How far advanced will your dealership be in the field of in order to thrive, but that raised two concerns. innovative next practices come Rugby World Cup 2019? AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 19 TRADE DIRECTORY ACCESSORIES UTE MASTER RETRO VEHICLE ENHANCEMENT AGENTS & WHOLESALES AUTOPORT.NET DOCUMENT DESCRUCTION A1 DOCUMENT DESTRUCTION ELECTRICIAN GOOD ELECTRICAL EMPLOYMENT SERVICES AUTOTERMINAL AUTOMOTIVE EMPLOYMENT HEIWA AUTO AUCTIONS MANHEIM AUCTIONS 09 918 0500 www.manheim.co.nz Manheim is New Zealand’s largest provider of automotive auction services. Auctions held weekly. www.tyres4u.co.nz NICHIBO 09 374 4436 www.nichibojapan.com We have a wealth of knowledge and experience in auto auctions throughout Japan which we know will enable us to assist you in making your next purchase. AUTOMOTIVE GLASS Go to dealer locator to find your local dealer COMPLETE GLASS AND GLAZING SERVICES NELSON AUTO GLASS CAR CLEAN PRODUCTS MEGUIAR’S Vehicle Inspection NZ PACER SUPER SHINE TURTLE WAX FINANCE AND INSURANCE AA INSURANCE AUTO FINANCE DIRECT AUTOSURE Phone: 09 489 9107 www.autosure.co.nz Autosure NZ has been a leading provider of automotiveowner protection policies for the NZ retail motor vehicle industry since 1986. GO COVER INSURANCE FINANCE AND INSURANCE UDC FINANCE 0800 500 832 www.udc.co.nz Your first choice in automotive lending. Fixed Rates. Fast Approval. IT MANAGEMENT SYSTEMS AUTO-IT LIMITED 0800 776 611 Sales@auto-it.co.nz Changing your DMS? Let Auto-IT help you, the leader in New Generation Dealer Management Systems. SYSTIME 09 583 2482 Paul.Wilkinson@tsinz.co.nz Autoline DMS – World leading Automotive Dealer Management and Distributor/Manufacturer Systems. HEARTLAND BANK KIWI CAR LOANS MAINSTREAM INSURANCE MY FINANCE MOTOR TRADE FINANCE ORION 09 583 2482 Paul.Wilkinson@tsinz.co.nz NZ’s #1 Dealer Management System installed in over 450 businesses.Sales Workshop, Parts, Fleet, Rental, CRM. OXFORD FINANCE 0800 263 264 info@oxf.co.nz www.oxfordfinance.co.nz Oxford’s friendly team can offer you flexible solutions to finance the purchase of your new vehicle. KERRICK INDUSTRIES SAM 09 583 2482 Paul.Wilkinson@tsinz.co.nz The ultimate specialist Workshop Management System suite. Range of options to suit. CATERING SERVICES BLUE CARROT CATERING PICKLES CAFÉ AND CATERING All the Auto Industry HOT NEWS every day as it happens on www.autotalk.co.nz Subscribe online for FREE twice weekly updates direct to your email COMMERCIAL CLEANING GOT DIRTY WINDOWS? ANGEL CLEANING CEILING CLEANERS 20 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz PROVIDENT INSURANCE Phone: 0800 676 864 Email: info@providentinsurance.co.nz Contact: Steve Owens Chief Executive Officer Helping dealers “Make Profits Grow”. Specialist F&I training, support and products to retail motor vehicle traders. INFORMATION SERVICE PROVIDER MOTORWEB Phone: 0800 843 847 Email: support@motorweb. co.nz NZ’s leading vehicle history check provider, delivering online services to all sectors of the motor industry. The comprehensive guide to every service a dealer could use IT SERVICES AUTOPLAY.CO.NZ 09 361 1505 salesauto@autoplay.co.nz Autoplay use the latest technology to deliver a suite of smart digital tools to our customers. ANNGOW MARKETING 027 207 9032 www.anngowmarketing.co.nz Independent digital marketing services & advice to the automotive industry, over 14 years’ experience, contact Joel today! PENTANA SOLUTIONS LIMITED MOTORCENTRAL PARTS REPCO 0800 800 878 www.repco.co.nz Repco - over 800 highly trained staff, 82 stores nationwide and home to New Zealand’s leading automotive brands. PAINT & FABRIC SUPPLIERES GARDX 0800 242 739 www.gardx.co.nz New Zealand Premier Paint & Fabric Supplier. Providing profit solutions that achieves results. SHIPPING AND LOGISTICS ARMACUP MARITIME SERVICES LIMITED AUTOHUB 09 411 7425 info@autohub.co.nz The easiest way to ship your cars and other vehicles globally. DOLPHIN SHIPPING AGENCIES JACANNA CUSTOMS AND FREIGHT MCCULLOUGH SHIPPING LIMITED MOANA BLUE TRANSITIONAL FACILITIES AUCKLAND TRANSITIONAL FACILITY VEHICLE BROKERING SBL INTERNATIONAL VEHICLE BROKERING 03 377 6578 www.sbltd.co.nz “NZ owned and operated SBL continue to set the motor industry benchmark for importing vehicles” VEHICLE INSPECTION VINZ Vehicle Inspection NZ 0800 GO VINZ (0800 468 469) info@vinz.co.nz New Zealand’s best choice for WoF / CoF, Inspections, Certifications and much more. VTNZ 0800 88 88 69 SALES@VTNZ.CO.NZ VEHICLE STORAGE AVS VEHICLE STORAGE SOLUTIONS VEHICLE TRANSPORT PTS LOGISTICS LIMITED MTA is NZ’s largest dealer representative group: Franchise dealers, used dealers, and motorcycle dealers. 0800 001 144 | www.mta.org.nz AUTO LOGISTICS LIMITED TRANSPORT LOGISTICS LIMITED VTS AUCKLAND METRO CAR DELIVERIES VW dealer sponsors Wellington Marathon T he Gazely Volkswagen Wellington Marathon has been a major event in the capital for 30 years. Event manager Michael Jacques is buoyed by the new partnership. “The Gazley Volkswagen partnership is pretty exciting for us,” says Jacques. “It gives the event added security and a stable base from which to do some long term planning and promotion. “Gazley are Wellington’s biggest motor company and Volkswagen is a major national and international brand, which by default introduces the event to a bigger promotional network than ever before.” The event’s home base is Westpac Stadium and follows a flat and fast 42.2km course around the bays, and will attract around 5000 competitors. Other options for those not keen on the classic marathon distance can take on the Shoe Clinic Half Marathon, the Mizuno 10k, The Hits 5k and the Bluebridge Kids’ Magic Mile. It will take place in late June, with online entry available from December 1. CAR & SUV Car & SUV is NZ’s first and only dedicated professional vehicle news and reviews website. www.carandsuv.co.nz TALK TO DALE STEVENSON ABOUT ADVERTISING YOUR BUSINESS IN RADE T W E N R OU DIRECTORY Phone: +64 9 309 2444 Mobile: +64 21 446 214 Email: dale@automediagroup.co.nz AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 21 F&ITALK Proudly brought to you by the market leaders Doing the ‘basics’ will make you more money H aving just spent some time in showing there is nothing hidden in the a business forum with a large contract, and it’s a well known fact that By Tony Neems group of business managers, people won’t buy from people they National sales inevitably the conversation always leads don’t trust. manager of Autosure back to getting the basics right in order It’s important at this stage not to to effect a successful sale. push for the customers’ acceptance of And in many cases, the key to efAfter the usual pleasantries, it is imall additional products in the contract. fective F&I penetration is very much portant that the business manager very You can cover this off when you get to dependant on a quality handover. quickly identifies the customers’ needs, understanding what you have heard I recently read an article that sugand makes sure the additional products from the customer and aligning it with gested that like a relay race, winning in the finance contract offer the right their needs. the F&I profit race comes down to a solutions for the customer. The next step is to simply ask the perfect customer handover from the At this stage it is important to fully question: “Which product options do sales team, and a strict adherence to a disclose all aspects of the loan. Before you want?’ This assumptive question structured process. Skip any part of the disclosing the additional products into makes saying ‘yes’ easy for a customer proven process and you will inevitably the loan, it is important that the cuswho already wants a particular product drop the baton. tomer is made aware of the principal or group of products as part of the deal. Take a minute to think about what and interest payments. In most cases If you receive a ‘no’ at this stage happens in your dealership once the you will gain the customers trust by there are a number of carefully scriptcustomer has made the decision ed words you can use to change to purchase. It is rare that in a busy a ‘no’ into a ‘yes’. For example: “ dealership that you can get the That surprises me. Earlier I was customer in front of the business doing something very important. manager immediately, leaving time I was listening and I heard what for doubt to creep its way in. you said. There were a couple So, as part of a structured handof things I thought were critical, over from sales to the F&I, and a especially after something you way to keep the purchaser focused said earlier.” on their purchase, is to hand to The customer is more likely to them a ‘welcome pack’. Included engage and listen to you if they Franchise August September October in this pack, and on the front page, feel you have listened to them. It Finance 36% 40% 41% could be a photo of the dealership is important to refer them back to MBI 34% 39% 41% with a ‘welcome to the family’. ‘something you said earlier’, as it PPI 7% 10% 12% Included in the pack could be will allow them to understand why GAP 16% 20% 18% a letter from the dealer principal they need the products you have MVI 11% 13% 17% thanking them for their business included in the contract. Used/ Import August September October and any prelim forms that may It’s important that sales and be required to be filled in by the F&I are deliberate and structured Finance 38% 40% 33% purchaser. Again this is all done to to ensure that full F&I profits are MBI 42% 47% 46% keep the focus on the purchase extracted from every opportunity PPI 15% 14% 16% and opening the door for the F&I presented. If the above process GAP 12% 27% 28% manager to start his or her process. does not work for you then strucMVI 11% 18% 8% The longer you leave the customer ture a process that does and follow Profit per waiting for the business manager, it religiously. August September October unit sold the less likelihood there will be of The benefits to you personally Franchise $903.00 $991.00 $932.00 getting full F&I penetration in to and to the dealership will be ten Used/Import $986.00 $1,021.00 $1,073.00 fold. the deal. 22 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz N I W 0 0 5 , 2 a$ er!* h c u o V l Trave ! e l p m i s s ’ t I d equals licy sol o p I V M Every raw. d e h t o t n i one entry bs! gra r o f p u s 10 prize *Terms and Conditions Apply Competition runs from October 1 to December 15, 2015. MOTOR VEHICLE INSURANCE “Providing confidence for the road ahead for over 25 years.” www.autosure.co.nz l 0800 267 873 F&ITALK www.mainstreaminsurance.co.nz | 0800 674 678 Is cash king? I n previous articles I’ve spoken about the importance of selling finance and insurance products, how much it can really add to the bottom-line of your dealership and the value of finance and insurance sales to your customer, your dealership and to your long-term relationship together. It’s referred to as F&I for good reason – you generally have to sell the ‘F’ before the ‘I’, so in this article I want to focus on how to sell finance – and often to the customer who doesn’t want dealer finance.…. at least not at first. Fact - 3 out of 5 customers that walk on to your dealership today and say they’re paying cash to purchase a motor vehicle are in fact borrowing funds from somewhere else. Why do they say they’re a cash customer? Because: 1. Perception - they think their bank offers By Steve Owens better rates of Provident 2. Education - they are Insurance told (by their bank), through general advertising and direct communications that their bank is their best source of borrowing 3. Belief – ‘Cash is King’. They think (and their bank is telling them) that if they say they’re a cash customer they will have better negotiating power with you – really?? 4. Pride - some don’t like to admit to you that they don’t have the money 5. Ignorance - some really aren’t aware you have a finance facility available in your dealership, or how competitive and convenient your facility is (after all you’re a car dealer, not a bank – right?). Fact - Your bank is a good source of future funding – so why use a good source of future funding when your customer can use your dealer finance facility right now to purchase their new vehicle and keep their bank facility available for future needs (weddings, 21sts, overseas travel, emergencies, etc). Fact – your dealer finance facility is competitive, convenient and confidential. One of the most common reasons people attend our F&I training seminars is to learn more effective techniques to convert the so-called ‘cash customers’ – and with practice and discipline, it’s not difficult. Before you even begin the process of trying to cash-convert, it’s important to learn as much as you can about your customer by engaging in conversation with them, let them talk more than you, learn as much as you can about them and then try to gain some common ground. Ask open ended questions like: “Where are you taking your new car this weekend?” The value of this type of question is, not only do you learn something about them (to help you build rapport) but it also reinforces ownership. Ask: “How are you intending financing the purchase of your new vehicle?” If they say cash you might express amazement or concern that they would consider using cash to Continued on page 36 24 | AUTOTALK OCTOBER 2015 | www.autotalk.co.nz STATSTALK USED VEHICLES Import growth ‘marginal’ T he steady growth in the market for used import cars finally hit the wall in October – growing just 0.4%. The first half of the year saw double-digit growth, but the last two months saw that drop to 8% growth, then 4%, and now this flat-line result. The result saw 11,149 vehicles registered, from 11,105 a year ago. For the year, passenger registrations remain up 13% at 119,312. In the commercial market, registrations were up 5% to 736. Toyota was the most popular import brand, down 3.8% to 2565 passenger cars, 23% of the market. Nissan was second on 1940, down 8.1% for a 17.4% share. Mazda was next on 1867, followed by Honda on 1261 and Subaru on 647. In commercials, Toyota lead on 376 units, up 10.5% for a 53.9% share, fol- MODEL TOYOTA MAZDA NISSAN TOYOTA NISSAN TOYOTA TOYOTA FIAT NISSAN TOYOTA HIACE BONGO CARAVAN REGIUS VANETTE TOYOACE DYNA DUCATO NV200 ESTIMA OCT '15 247 51 51 32 25 25 24 20 20 20 lowed by Nissan on 124 and Mazda on 57. The Nissan Tilda, Mazda Axela and Suzuki Swift were the most popular passenger models, the Toyota Hiace topping the commercial market. Levin’s Ross McColl Motor Company is hoping for the nice sunny weather that draws out its core clientele of retirees. Its stock is focused around the $10,000 mark, with vehicles like Honda Fits and Mazda Axelas, said Nathan McColl, but some “rainy, inclement weather” hasn’t helped. “Last month was okay,” he said, “and enquiry rates are Continued on page 26 USED IMPORT COMMERCIAL MAKES USED IMPORT COMMERCIAL MODELS MAKE USED IMPORTS BROUGHT TO YOU BY: OCT '14 TOYOTA HIACE 244 NISSAN CARAVAN 54 TOYOTA REGIUS 43 MAZDA BONGO 37 NISSAN VANETTE 30 TOYOTA TOWNACE 17 TOYOTA DYNA 16 NISSAN NAVARA 15 ISUZU ELF 14 MITSUBISHI CANTER 13 MAKE MODEL MAKE TOYOTA NISSAN MAZDA MITSUBISHI FIAT ISUZU FORD CHEVROLET HINO HOLDEN OTHER TOTAL OCT '15 378 124 57 31 21 21 17 16 11 11 49 736 OCT' 14 342 136 42 30 9 23 32 15 20 11 41 701 Movement Up 1 Up 5 Down 3 Down 2 Down 1 % Change 10.5 -8.8 35.7 3.3 133.3 -8.7 -46.9 6.7 -45.0 0.0 19.5 5.0 Mkt Share 53.9 17.7 8.1 4.4 3.0 3.0 2.4 2.3 1.6 1.6 7.0 100.0 AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 25 STATSTALK USED VEHICLES USED IMPORTS Import growth ‘marginal’ BROUGHT TO YOU BY: Continued from page 25 definitely up - now all we need is some sun.” He agreed the All Blacks’ World Cup win will help the country generally. “Even if you’re not a rugby fan, it’s good for the economy,” he said, “and if the perception around the economy is that it’s strong, the motor industry will do well.” West Auckland’s Vision Auto Sales has noticed things aren’t quite as rosy as recent years, but has been maintaining sales numbers. “The halcyon period we’ve enjoyed for a few years has gone away a bit,” says Vision’s Tim Marshall, “but we’re all in the same boat. You can sell the same number of vehicles, but it’s what you’re making out of each one that’s important - and it’s getting harder. “The changes in the exchange rate obviously means fewer cars are coming in, and any idiot isn’t as able to try and do it themselves. I actually prefer it when it’s a modicum hard - it sorts the wheat from the chaff.” AROUND THE COUNTRY DISTRACT WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL OCT '15 235 5496 676 79 456 116 31 233 182 73 281 64 941 187 54 27 7 1439 97 19 300 156 11149 OCT '14 253 5460 782 58 466 114 50 202 159 73 271 53 811 187 63 25 8 1528 92 25 300 125 11105 % CHANGE -7.11 0.66 -13.6 36.2 -2.15 1.75 -38 15.3 14.5 0 3.69 20.8 16 0 -14.3 8 -12.5 -5.82 5.43 -24 0 24.8 0.4 USED IMPORT PASSENGER MAKES MAKE OCT'15 OCT'15 Movement % Change TOYOTA NISSAN MAZDA HONDA SUBARU SUZUKI BMW MITSUBISHI VOLKSWAGEN AUDI MERCEDES-BENZ FORD VOLVO LEXUS HYUNDAI MINI HOLDEN CHEVROLET JAGUAR LAND ROVER OTHER TOTAL 2565 1940 1867 1261 647 632 459 394 391 200 189 112 79 55 40 40 36 34 30 25 153 11149 2638 2110 1726 1085 517 691 457 408 427 207 228 131 72 28 61 38 25 43 26 29 158 11105 Up 1 Down 1 Up 1 Down 1 Up 1 Down 1 Up 4 Down 1 Up 3 Down 3 Down 3 -2.8 -8.1 8.2 16.2 25.1 -8.5 0.4 -3.4 -8.4 -3.4 -17.1 -14.5 9.7 96.4 -34.4 5.3 44.0 -20.9 15.4 -13.8 -3.2 0.4 Market Share 23.0 17.4 16.7 11.3 5.8 5.7 4.1 3.5 3.5 1.8 1.7 1.0 0.7 0.5 0.4 0.4 0.3 0.3 0.3 0.2 1.4 100.0 USED IMPORT PASSENGER MODELS MAKE MODEL OCT'15 MAKE MODEL OCT'14 NISSAN MAZDA SUZUKI HONDA MAZDA TOYOTA SUBARU TOYOTA MAZDA MAZDA VOLKSWAGEN TOYOTA MITSUBISHI TOYOTA BMW HONDA TOYOTA NISSAN NISSAN MAZDA TIIDA AXELA SWIFT FIT DEMIO COROLLA LEGACY WISH ATENZA MPV GOLF ESTIMA OUTLANDER VITZ 3 SERIES ODYSSEY IST NOTE MURANO PREMACY 520 506 501 458 451 360 327 324 290 252 249 188 184 169 167 149 146 145 144 139 SUZUKI TOYOTA NISSAN MAZDA MAZDA SUBARU HONDA MAZDA TOYOTA VOLKSWAGEN TOYOTA MITSUBISHI HONDA MAZDA TOYOTA BMW NISSAN MAZDA NISSAN NISSAN SWIFT COROLLA TIIDA AXELA DEMIO LEGACY FIT ATENZA VITZ GOLF WISH OUTLANDER ODYSSEY MPV ESTIMA 3 Series DUALIS PREMACY NOTE BLUEBIRD 568 553 528 504 377 292 291 278 272 254 236 201 198 193 184 178 178 168 153 148 • Interest rates from 11.95% • Nichibo and non Nichibo cars financed • Competitive commissions – no retention and no claw back • Low and no deposit to approved purchasers 26 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz Tel: (09) 369 5276 www.autofinancedirect.co.nz STATSTALK USED VEHICLES USED IMPORTS New and used car arrivals still strong T here were 8623 new car and 12,388 used car arrivals across New Zealand wharves in the month of October. The 2015 year to date tally is now 84,421 for new cars, and 123,847 for used cars. It may be unlikely that numbers for November and December will better last year’s results that saw 100,594 new and 136,797 used arrivals for the full 2014 year. New and used light com- BROUGHT TO YOU BY: mercial vehicle arrivals continue to flood in across New Zealand wharves. There were 2167 new light commercial vehicles (under 3500kg GVM) that arrived in October 2015 bringing the year-to-date tally to 25,652, only 207 vehicles behind the full year’s tally in 2014. There was a total of 25,859 new light commercial vehicle arrivals in 2014, so it is more than likely that figure will grow by the year ending December 30, 2015. TOTAL OTHER VW TOYOTA SUZUKI SUBARU PEUGEOT NISSAN MITSUBISHI MERCEDES MAZDA HYUNDAI HONDA HOLDEN FORD DAIHATSU CHEVROLET BMW AUDI USED IMPORT PASSENGER MAKES – THIS YEAR 15-Jan 220 472 60 20 173 32 1160 59 1992 229 511 2012 24 618 775 2648 420 366 11791 14-Jan 208 328 54 25 139 23 920 16 1655 155 363 1779 6 425 549 2206 311 308 9470 % diff 6 44 11 -20 24 39 26 269 20 48 41 13 300 45 41 20 35 19 25 15-Feb 190 475 81 18 169 30 1120 38 1678 200 388 1779 18 561 684 2414 403 326 10572 14-Feb 189 346 54 20 98 20 1015 18 1510 142 350 1619 12 361 550 2258 298 295 9155 % diff 1 37 50 -10 72 50 10 111 11 41 11 10 50 55 24 7 35 11 15 15-Mar 276 585 58 12 167 29 1240 54 1942 250 479 2076 25 655 772 2804 486 403 12313 14-Mar 177 413 61 15 107 17 1124 41 1765 161 371 1842 10 433 617 2441 373 279 10247 % diff 56 42 -5 -20 56 71 10 32 10 55 29 13 150 51 25 15 30 44 20 15-Apr 246 527 67 13 138 47 1179 34 1805 227 431 1753 18 605 653 2468 448 379 11038 14-Apr 196 391 50 12 112 22 1057 36 1524 171 42 365 13 380 560 2217 368 1985 9501 % diff 26 35 34 8 23 114 12 -6 18 33 926 380 38 59 17 11 22 -81 16 15-May 253 599 56 10 153 33 1391 36 1989 264 427 2106 15 739 736 2721 495 392 12415 14-May 210 471 63 8 126 32 1226 44 1783 206 413 2120 18 421 680 2677 399 326 11223 % diff 20 27 -11 25 21 3 13 -18 12 28 3 -1 -17 76 8 2 24 20 11 15-Jun 286 585 40 16 105 36 1403 28 2048 258 482 2132 14 677 711 2746 484 364 12415 14-Jun 240 469 49 15 115 27 1119 38 1718 161 417 2128 10 415 661 2532 358 288 10760 % diff 19 25 -18 7 -9 33 25 -26 19 60 16 0 40 63 8 8 35 26 15 15-Jul 269 629 45 23 150 40 1422 31 2219 281 519 2453 22 797 850 3152 527 462 13891 14-Jul 233 483 41 18 130 22 1278 41 1881 201 440 2393 16 462 775 2871 408 359 12052 % diff 15 30 10 28 15 82 11 -24 18 40 18 3 38 73 10 10 29 29 15 15-Aug 255 588 51 26 121 41 1198 30 1962 213 446 2136 14 694 746 2725 446 369 12061 14-Aug 213 462 46 20 122 1182 40 1780 186 398 2208 19 488 688 2667 426 343 11288 % diff 20 27 11 30 -1 1 -25 10 15 12 -3 -26 42 8 2 5 8 7 15-Sep 217 526 46 11 116 43 1261 41 1876 199 388 2057 22 650 651 2745 445 373 11667 14-Sep 228 496 37 11 126 31 1097 44 1791 197 404 2183 15 452 660 2605 436 360 11142 % diff -5 6 24 0 -8 39 15 -7 5 1 -4 -6 47 44 -1 5 2 4 5 15-Oct 200 459 34 23 112 36 1261 40 1867 189 394 1940 21 647 632 2565 391 338 11149 14-Oct 207 457 43 16 131 25 1085 61 1726 228 408 2110 21 517 691 2638 427 339 11105 % diff -3 0 -21 44 -15 44 16 -34 8 -17 -3 -8 0 25 -9 -3 -8 0 0 YTD 15 2412 5445 538 172 1404 367 12635 391 19378 2310 4465 18665 193 6643 7210 26988 4545 3772 119312 YTD 14 2101 4316 498 160 1206 249 11103 379 17133 1808 3606 18747 140 4354 6431 25112 3804 4882 105943 %diff 15 26 8 8 16 47 14 3 13 28 24 0 38 53 12 7 19 -23 13 COMPETITIVE FINANCE. PERSONAL SERVICE. Tel: (09) 369 5276 www.autofinancedirect.co.nz AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 27 STATSTALK NEW VEHICLES Heat coming out of commercials? T he previously explosive growth in the new commercial market appears to be waning. New commercial registrations, released today by the NZ Transport Agency, were down 2% for the month to 3052 units from 3113 this time last year. That is despite a big push by the Ford Ranger, and the Toyota Hilux running down towards its upcoming new model. Registrations of passenger vehicles were up 8.1% against October 2014 to 9634 units, from 8910. The overall market for the month was up 7% to 12,686. Passenger registrations are up 5% for the year to 79,872 vehicles. So far this year 32,498 commercials have been registered. The market for the year has now tipped over the 100k mark, to 112,184 – meaning the market may see 140,000 units. In the passenger market, Toyota leads on 2741 units, up 14.4% from 2395 a year ago for a 24.6% market share. In second, Holden recorded 992 registrations, up 2.7% for an 8.9% stake. Mazda was third on 907, a huge 46.1% jump, followed by Hyundai on 687 and Ford on 594. NEW PASSENGER MAKES In commercials, Ford leads off the back of the Ranger, OCT OCT % Market but its volume was actually down 9.1% to 628 from 691. MAKE Movement '15 '14 Change Share The brand held 20.2% of the market. TOYOTA 2741 2395 14.4 24.6 Toyota was second on 583 units, down 17.5% from 707 HOLDEN 992 966 2.7 8.9 last year. Up 2 46.1 8.1 MAZDA 907 621 Holden was this on 313 commercials, followed by MitDown 1 2.1 6.2 HYUNDAI 687 673 subishi on 245 and Nissan on 210. FORD 594 667 Down 1 -10.9 5.3 Continued on page 29 The Ford Ranger remained SUZUKI 400 373 Up 1 7.2 3.6 NISSAN 395 336 Up 1 17.6 3.5 NEW COMMERCIAL MAKES MITSUBISHI 366 427 Down 2 -14.3 3.3 % Mkt OCT OCT HONDA 284 317 -10.4 2.5 MAKE Movement Change Share '15 '14 KIA 265 244 Up 1 8.6 2.4 Down 1 -17.6 2.3 VOLKSWAGEN 253 307 FORD 628 691 Up 1 -9.1 20.2 Up 5 151.1 2.0 SSANGYONG 226 90 TOYOTA 583 707 Down 1 -17.5 18.7 HOLDEN 313 252 24.2 10.1 Up 1 24.0 1.7 SUBARU 191 154 MITSUBISHI 245 131 Up 2 87.0 7.9 Down 2 -7.0 1.7 BMW 185 199 NISSAN 210 142 47.9 6.7 MERCEDES-BENZ 178 134 32.8 1.6 Down 2 16.7 6.3 ISUZU 196 168 JEEP 161 132 22.0 1.4 Up 1 16.3 3.9 MAZDA 121 104 Down 4 -30.1 1.1 AUDI 121 173 Up 4 52.9 3.4 MERCEDES-BENZ 107 70 Up 5 76.4 0.9 FIAT 97 55 FIAT 98 81 21.0 3.1 Down 1 8.2 0.8 SKODA 92 85 Down 3 -48.8 2.0 VOLKSWAGEN 63 123 Up 2 42.9 0.7 LAND ROVER 80 56 Up 3 -4.7 15.7 OTHER 488 512 OTHER 419 506 -17.2 3.8 TOTAL 3052 3113 -2.0 100.0 TOTAL 9634 8910 8.1 100.0 Your first choice in automotive lending. Ph 0800 500 832 or visit www.udc.co.nz UDC Finance Limited lending criteria applies. 28 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz STATSTALK NEW VEHICLES segment with 34% market share for the month of October and 34% year-to-date. The small passenger vehicle segment was the second biggest segment on 20% market share for the month of October and 15% year-todate. The Pick-up/Chassis Cab segment was the third strongest segment with 17% for the month of October, but with 21% market share year-todate remains the overall second-strongest segment. David Crawford, chief executive of the Motor Industry Association notes the market is headed for a record finish. “Registrations of new vehicles has averaged a staggering 11,237 a month year to date, and if this pace continues, the industry is will smash last NEW COMMERCIAL MODELS OCT OCT year’s record sales of 127,352 new vehicles MODEL MAKE MODEL by about 7,000 units,” says Crawford. '15 '14 Crawford noted to AutoTalk that, while RANGER 558 FORD RANGER 627 commercial sales have softened, they HILUX 364 TOYOTA HILUX 514 continue to drive the market. He says the COLORADO 296 HOLDEN COLORADO 235 strength of the dollar has yet to bite the TRITON 245 TOYOTA HIACE 175 market, and with strong tourism, rental cars NAVARA 210 NISSAN NAVARA 142 are in demand. HIACE 207 ISUZU D-MAX 110 Continued from page 28 the monthly top-selling commercial vehicle model with 561 vehicles registered, followed by the Toyota Hilux with 364 vehicles and Holden Colorado with 296 vehicles. Year-to-date the Ranger remains the top-selling commercial vehicle model with 17% market share (5,527 vehicles) followed by the Hilux with 14% (4,521 vehicles) and the Colorado with 9% market share (3,006 vehicles). Not surprisingly, given high volume of rental sales, the Toyota Corolla was the top model overall for the month of October with 1,334 vehicles followed by the Ford Ranger with 561 vehicles and the Toyota Highlander with 428 vehicles. Year-to-date, the top selling models in order are the Ranger, Corolla and Hilux. Sports utility vehicles remain the dominant vehicle sales MAKE FORD TOYOTA HOLDEN MITSUBISHI NISSAN TOYOTA ISUZU MAZDA MERCEDES-BENZ FIAT D-MAX BT-50 SPRINTER DUCATO 124 121 92 88 MAZDA MITSUBISHI FIAT SSANGYONG BT-50 TRITON DUCATO ACTYON SPORT 104 103 79 75 NEW PASSENGER MODELS OCT '15 TOYOTA COROLLA 1334 TOYOTA HIGHLANDER 428 TOYOTA YARIS 378 TOYOTA RAV4 362 MAZDA MAZDA3 278 HOLDEN CAPTIVA 270 HOLDEN COMMODORE 268 HYUNDAI IX35 258 MAZDA CX-5 230 SUZUKI SWIFT 209 MAZDA MAZDA6 165 FORD MONDEO 153 HYUNDAI SANTA FE 150 SSANGYONG KORANDO 145 HOLDEN BARINA 143 HONDA JAZZ 135 NISSAN X-TRAIL 131 NISSAN QASHQAI 124 HYUNDAI TUCSON 123 MAZDA MAZDA2 133 MAKE MODEL MAKE TOYOTA TOYOTA HOLDEN SUZUKI TOYOTA HOLDEN TOYOTA MAZDA FORD HONDA MAZDA HYUNDAI HYUNDAI MITSUBISHI VOLKSWAGEN MAZDA MITSUBISHI HOLDEN NISSAN MAZDA OCT '14 COROLLA 1257 YARIS 438 COMMODORE 294 SWIFT 266 RAV4 263 CRUZE 243 HIGHLANDER 243 MAZDA3 233 FOCUS 230 JAZZ 218 CX-5 211 IX35 181 SANTA FE 173 OUTLANDER 159 GOLF 149 MAZDA2 112 LANCER 112 CAPTIVA 111 QASHQAI 106 MAZDA2 114 MODEL NEW AROUND THE COUNTRY DISTRICT OCT'15 OCT'14 WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE WES CHR TIM OAM DUN INV TOTAL 130 5032 479 46 271 108 40 146 127 70 185 44 557 86 54 18 3 1860 50 19 220 89 9634 143 4299 389 44 296 80 45 178 133 42 212 52 623 73 48 6 1 1888 55 11 192 100 8910 % CHANGE -9.09 17.1 23.1 4.55 -8.45 35 -11.1 -18 -4.51 66.7 -12.7 -15.4 -10.6 17.8 12.5 200 200 -1.48 -9.09 72.7 14.6 -11 8.13 Fixed Rates. Fast approval. AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 29 STATSTALK NEW VEHICLES Australian market close to record year N ew car sales in Australia were strong again in October with buyers taking home 94,321 new passenger cars, SUVs and commercials. Year-to-date sales are up 3.6%, reaching 957,153 and a 3.4% boost compared to October 2014. With just two months left of 2015 and needing 142,847 car sales in that time, it is expected that car sales will again top 1.1m for the year. There is also a strong possibility that it will overtake that number and hit the 2013 record of 1,136,227 units sold. The Federal Chamber of Automotive Industries today released its October figures and said that this year’s strong sales have again been led largely by the growth of the SUV market, which is up 15.9% compared to sales in the period January to October 2014. The total SUV market increased 20.5% in October 2015, compared to October 2014. Small SUV sales, in particular, increased 37%, medium SUV sales increased 20.1% and large SUVs increased by 11.8%. MINI MITSUBISHI PORSCHE SKODA SSANGYONG SUBARU SUZUKI TOYOTA VOLKSWAGEN VOLVO OTHER 116 337 1941 343 36 186 9010 78 158 527 1467 414 45 141 8293 14 -19 34 30 39 -5 2 33 19 1 68 19 12 -27 -36 32 32 9 123 247 47 56 674 155 54 472 371 71 30 75 106 172 289 906 372 46 157 7057 258 78 50 532 109 46 404 388 87 13 54 72 144 423 762 316 34 124 6572 -4 -40 12 27 42 17 17 -4 -18 131 39 47 19 -32 19 18 35 27 7 46 90 100 239 483 970 420 33 162 8075 359 48 152 7992 17 -31 7 1 HONDA 4 31 502 19 12 44 827 10 -56 -18 -24 -26 -67 -30 -39 -80 50 -1 12 3 151 193 2 44 514 0 765 252 694 523 13 782 230 616 84 -2 -100 -2 10 13 46 % diff 15-Feb 14-Feb % diff 15-Mar 14-Mar % diff 15-Apr 14-Apr % diff 15-May 14-May CHERY 14 195 16 2 1280 853 -17 -20 TOTAL MERCEDES-BENZ 87 75 149 180 PEUGEOT MAZDA 89 44 148 27 NISSAN LEXUS 74 444 100 12 14-Jan LAND ROVER 528 101 353 15-Jan KIA 469 63 JEEP 64 200 HYUNDAI 191 521 96 FORD HOLDEN 722 40 109 DODGE GREAT WALL 52 92 746 665 BMW CHRYSLER 198 123 243 356 360 AUDI ALFA ROMEO NEW PASSENGER MAKES 19 179 174 12 4 42 -84 -16 11 33 -50 5 9 181 165 31 9 54 461 0 794 434 669 129 304 108 63 732 217 64 611 434 602 11 764 367 774 100 277 78 65 621 157 46 640 408 114 17 83 83 184 505 1048 -23 -100 4 18 -14 29 10 38 -3 18 38 39 -5 6 -45 171 8 20 30 -4 -7 86 295 49 53 597 130 37 373 357 55 36 73 114 155 373 794 288 22 120 6373 231 66 28 485 120 48 334 469 308 37 123 6150 28 -26 89 23 8 -23 12 -6 -41 -2 4 34 30 113 6802 6347 26 205 171 23 10 54 -65 -12 -4 35 -10 0 7 155 195 36 6 34 509 0 576 261 587 441 13 662 200 571 115 15 -100 -13 31 3 -25 108 230 68 43 524 191 31 159 199 20 9 32 -77 -3 -2 80 -33 6 18 170 214 32 6 30 562 15 798 196 531 160 10 10 22 614 14 692 234 685 46 259 40 40 403 159 34 220 -40 36 -8 7 15 -16 -22 135 -11 70 8 30 20 4 86 466 0 870 285 773 146 292 70 47 697 173 58 691 281 714 17 960 165 940 104 299 84 47 543 183 41 617 -35 -100 -9 73 -18 40 -2 -17 0 28 -5 41 12 63 92 22 67 70 125 309 764 -24 -40 64 9 63 24 21 4 354 415 65 21 67 68 126 406 996 371 39 232 261 95 16 53 45 138 406 1072 301 21 107 -13 53 59 -32 31 26 51 -9 0 -7 23 43 6 7 30 117 145 245 404 2171 369 38 175 9021 307 103 36 90 120 153 475 1448 410 25 166 8517 -8 -53 -17 30 21 60 -15 50 -10 52 5 6 2 171 800 -1 16 163 144 17 14-Jun 12 196 174 54 3 31 % diff 33 -17 -17 -69 33 177 8 130 162 12 0 66 513 0 647 358 539 140 282 83 52 724 178 40 413 348 53 62 73 111 199 352 1179 312 39 197 7272 14-Jul 25 168 147 25 5 46 602 12 805 421 571 113 241 72 40 529 138 34 405 373 57 307 46 149 7071 % diff -68 -23 10 -52 -100 43 -15 -100 -20 -15 -6 24 17 15 30 37 29 18 2 -7 2 -15 32 3 10 166 128 9 1 62 413 0 721 331 664 147 306 77 45 743 153 41 407 444 131 7752 147 34 6 61 494 7 837 372 599 134 217 83 40 487 160 47 380 7083 -13 -74 -83 2 -16 -100 -14 -11 11 10 41 -7 13 53 -4 -13 7 3 102 618 0 1068 353 700 131 265 71 57 891 194 63 604 425 479 37 1044 57 54 371 180 52 0 1550 -48 -65 1062 % diff 15-Jun 15-July 15- Aug 14-Aug % diff 15-Sep 14-Sep % diff 15-Oct 14-Oct % diff YTD 15 31 161 -68 3 5 187 182 12 181 28 6 71 1 -57 -50 44 7 40 594 667 12 184 -58 2 10 121 185 14 17 173 199 -41 -30 388 636 123 256 -66 80 -79 115 -72 0 992 284 687 161 265 23 966 317 673 132 -11 -100 3 -10 2 22 29 2786 48 20 76 68 152 394 1030 -7 210 -4 63 31 -11 14 62 33 93 172 210 332 1512 291 48 340 111 27 70 84 130 345 1169 289 46 175 31 -44 22 33 105 62 -4 29 1 4 -25 9 50 31 81 111 258 314 1471 314 56 218 8835 515 496 107 12 68 108 175 302 1582 327 34 497 8382 -17 -90 -71 575 63 139 79 387 -80 -83 29 92 226 191 400 2741 253 178 58 366 395 79 244 56 55 621 134 61 427 336 79 33 85 90 154 373 2395 307 32 161 8910 9 43 -9 46 33 -5 -14 18 0 -12 8 151 24 7 14 -18 28 17 8 15 58 -31 83 1576 1637 172 38 554 5047 1070 7776 3522 6135 1383 2481 774 1357 6685 1597 1069 4655 3536 627 466 914 1427 2015 4766 13486 3013 76 469 5911 218 1775 1801 274 -11 -9 -37 -50 33 -15 9634 907 -53 -62 188 50 27 %diff 5 41 80 -7 -48 YTD 14 -56 1679 79872 158 8471 3016 6576 1109 2496 734 462 5234 1572 472 4429 3976 915 245 735 841 1501 4059 12661 3408 377 1801 577 126 -8 17 -7 25 -1 5 194 28 2 Your first choice in automotive lending. Ph 0800 500 832 or visit www.udc.co.nz UDC Finance Limited lending criteria applies. 30 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz 5 -11 -31 90 24 70 34 17 7 -12 -7 75772 5 STATSTALK SECONDHAND Dealer trade up T 17,698 units, while dealer purchases were down 0.9% to 12,416. The public traded 42,304 vehicles during the month, up 6.5% on October 2014. In the bike market, dealer sales fell 8.4% to 404 units, he number of used vehicles sold by traders rose in October - as the used import market slowed. The number of dealerto-public registrations rose 4.5% for the month to Compliance made simple ...since 1999 while trade-in volume rose 5% to 315 bikes. The public market was up 7.2% to 1527. Dealer truck sales were up a strong 12.8% to 2326 units, while dealer purchases jumped nearly a fifth - by 18.6% to 1756 units. Public-to-public transactions rose 7.8% to 5908. SECONDHAND REGISTRATIONS − OCTOBER 2015 SALE TYPE WHA AUC HAM THA TAU ROT GIS NAP NEW WAN PAL MAS WEL NEL BLE GRE 1152 80 592 97 WES CHR TIM OAM DUN INV TOTAL Cars 2015 Public to Trader 216 112 380 214 149 608 90 1131 235 137 35 1755 136 8 439 308 12594 Public to Public 1840 14750 3269 590 4720 2045 834 384 1350 954 527 1635 395 2906 915 416 173 98 5170 522 164 1878 985 41800 Trader to Public 560 26 2302 249 59 657 388 18062 6484 1469 233 995 318 160 550 389 206 716 154 1527 343 189 88 4745 1207 607 129 237 109 822 90 Cars 2014 Public to Trader 256 97 428 1174 241 106 44 1854 150 24 563 296 13282 Public to Public 1838 14181 3069 525 2035 680 362 1304 1029 398 1630 330 2761 983 383 218 104 5271 220 1774 887 40495 Trader to Public 564 945 160 587 27 2399 238 83 781 410 17904 5891 103 1453 231 Public to Trader -15.6 -0.5 -4.6 -22.3 -2.5 Public to Public 0.1 4.0 6.5 12.4 0.5 Trader to Public -0.7 10.1 1.1 0.9 Public to Trader 4 124 49 Public to Public 51 545 129 30 Trader to Public 17 146 45 Public to Trader 4 126 Public to Public 46 446 Trader to Public 13 133 267 513 422 182 797 181 1613 349 217 107 -24.8 15.5 -11.2 -9.7 36.7 -26.0 0.0 -3.7 -2.5 29.2 -20.5 -5.3 -9.3 -66.7 -22.0 4.1 -5.2 22.6 6.1 3.5 -7.3 32.4 0.3 5.3 -6.9 8.6 -20.6 -5.8 -1.9 1.8 -25.5 5.9 11.0 3.2 5.3 19.1 0.0 -6.3 -7.8 13.2 -10.2 -14.9 -5.3 -1.7 -12.9 -17.8 -3.7 -4.0 4.6 -28.9 -15.9 -5.4 0.9 26 1 1 5 3 2 19 5 67 7 4 26 1 1 14 4 363 114 46 11 62 70 15 56 11 131 72 16 12 1 251 32 7 67 30 1759 9 37 6 3 10 13 2 19 4 40 12 6 1 1 42 4 1 13 8 439 44 1 32 1 8 7 2 18 7 58 9 1 18 3 355 132 23 103 23 10 47 50 12 73 15 132 63 16 13 3 261 22 12 48 38 1588 42 5 26 9 4 12 13 9 18 8 46 11 7 1 2 37 3 3 17 3 422 -28.6 15.5 0.0 -22.2 33.3 0.0 -7.7 -66.7 -3.8 45.5 -41.7 39.6 -50.0 13.5 33.3 -66.7 -23.5 166.7 4.0 Cars % Change 19.7 Motorcycles 2015 Motorcycles 2014 16 Motorcycles % change Public to Trader 0.0 -1.6 11.4 -18.8 0.0 -37.5 -57.1 0.0 5.6 Public to Public 10.9 22.2 -2.3 30.4 10.7 100.0 10.0 31.9 -23.3 -26.7 -0.8 Trader to Public 30.8 9.8 7.1 80.0 42.3 -33.3 -25.0 -16.7 0.0 -77.8 5.6 -50.0 -13.0 9.1 -14.3 0.0 Public to Trader 58 654 202 18 92 20 30 69 47 30 131 23 97 55 39 13 234 47 1 78 62 2000 Public to Public 366 1820 550 118 350 141 79 203 170 80 275 66 397 172 101 39 12 740 102 33 283 178 6275 Trader to Public 114 751 251 58 187 68 53 103 87 48 140 30 167 69 42 27 6 365 49 13 130 73 2831 Public to Trader 47 494 175 18 102 20 59 80 27 14 119 20 96 57 30 5 209 34 2 74 68 1750 Public to Public 357 1623 532 119 356 110 77 246 186 66 264 58 314 173 81 58 31 825 99 40 277 157 6049 Trader to Public 85 672 272 40 143 43 53 100 70 18 138 27 149 53 49 22 5 360 35 12 106 97 2549 Public to Trader 23.4 32.4 15.4 0.0 -9.8 0.0 -49.2 -13.8 74.1 114.3 10.1 15.0 1.0 -3.5 30.0 160.0 12.0 38.2 -50.0 5.4 -8.8 14.3 Public to Public 2.5 12.1 3.4 -0.8 -1.7 28.2 2.6 -17.5 -8.6 21.2 4.2 13.8 26.4 -0.6 24.7 -32.8 -61.3 -10.3 3.0 -17.5 2.2 13.4 3.7 Trader to Public 34.1 11.8 -7.7 45.0 30.8 58.1 0.0 3.0 166.7 1.4 11.1 12.1 30.2 -14.3 22.7 8.3 -24.7 11.1 40.0 25.0 -22.2 14.3 62.5 2.3 -21.1 10.8 Trucks 2015 Trucks 2014 Trucks % change 24.3 ✓ Control & manage your Trader Network stock ✓ Paperless change of ownership transactions ✓ Create wholesale vehicle transactions 20.0 1.4 40.0 22.6 'Take control with Dealer Dashboard' ✓ Total vehicle securities management ✓ Mobile optimised services AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 31 STATSTALK BIKES Bikes still up B ike registrations in October did not quite show the strength they have shown in recent months – but were still on the rise. New bike registrations were up 3.8% to 791 units from 762 in October last year. For the year registrations have hit 7108 units. Interestingly, usual market leader slipped to second, with Honda taking first spot on 99 registrations, up 28.6% for a 12.5% stake. Harley Davidson was second on 94, up 28.8% for an 11.9% market share, with Suzuki tied, down 2.1%. Yamaha was fourth on 66, Kawasaki fifth on 55. The Honda NBC110 BN was top new model on 47 bikes, followed by the Yamaha YZF R3AF on 20 and Harley Davidson Street 16 500 on 17. Used motorcycle registrations were up 8.2% for the month to 224 from 207. Coleman Suzuki in NEW BIKE MODELS MAKE HONDA YAMAHA HARLEY DAVIDSON TNT MOTOR SUZUKI SUZUKI APRILIA KAWASAKI FACTORY BUILT KTM MODEL NBC 110BN YZF R3AF STREET 16 STREET 500 ROMA 2T GW250 INAZUMA LAM UZ50 X ETX 150 ER 300A LINTEX VIVA 200 DUKE OCT'15 47 20 17 16 15 14 13 11 10 10 USED BIKE MAKES MAKE OCT'15 OCT'14 % CHANGE MARKET HARLEY DAVIDSON HONDA TRIUMPH BMW SUZUKI YAMAHA KAWASAKI DUCATI VICTORY KTM OTHER TOTAL 73 31 21 17 13 12 9 8 7 5 28 224 55 17 16 14 16 9 15 28 4 6 27 207 32.7 82.4 31.3 21.4 -18.8 33.3 -40.0 -71.4 75.0 -16.7 3.7 8.2 35.3 15.0 10.1 8.2 6.3 5.8 4.3 3.9 3.4 2.4 13.5 100.0 Auckland City misses out on some of the dirt-bike sales that the sunshine brings, but self-proclaimed salesman extraordinaire Craig Stephens says they’re pretty happy with recent performance. The bike that’s getting the most interest is the new GSX1000S - which he describes as the most hightech bike the company has ever made. “It’s got more tech, it’s a comfortable cruiser sports with a really good 1000cc four-cylinder and it’s only available in matte grey,” he said. “Worldwide demand has been huge, but we catch up on all the colours in Christmas.” Riders coming off sportsbikes are its main market - “none of us like to admit it, but we do get old and have to make more sensible decisions occasionally,” jokes Stephens. The market is going strongly as the summer weather improves, he says, noting that HarleyDavidson’s performing well and that another Japanese manufacturer has registered a lot of “postie bikes.” NEW BIKE MAKES MAKE OCT '15 YTD '15 OCT '14 % Market Change Share % HONDA HARLEY DAVIDSON SUZUKI YAMAHA KAWASAKI TRIUMPH BMW FACTORY BUILT KTM APRILIA MOPED TNT MOTOR VESPA HYOSUNG DUCATI FORZA PGO INDIAN ZNEN PEUGEOT OTHER TOTAL 99 94 94 66 55 37 36 32 30 29 25 21 18 16 15 15 12 11 10 9 67 791 901 549 1196 611 442 376 266 238 250 210 138 238 122 124 167 143 96 103 44 86 808 7108 77 73 96 83 60 69 38 12 28 7 20 36 12 13 17 15 17 20 0 0 69 762 28.6 28.8 -2.1 -20.5 -8.3 -46.4 -5.3 166.7 7.1 314.3 25.0 -41.7 50.0 23.1 -11.8 0.0 -29.4 -45.0 -2.9 3.8 12.5 11.9 11.9 8.3 7.0 4.7 4.6 4.0 3.8 3.7 3.2 2.7 2.3 2.0 1.9 1.9 1.5 1.4 1.3 1.1 8.5 100.0 a fresh approach to dealer finance www.MyFinance.co.nz 0800 385 385 61771 Auto File Banner Print Ad 180x56mm PRESS.indd 1 32 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz 1/11/13 4:20 PM STATSTALK TRUCKS Isuzu Trucks retains new market dominance despite slowing market I suzu Trucks has maintained its market leadership in the new heavy truck market with 910 registrations in the year to October 31, as opposed to 767 in the previous corresponding period. Despite overall market registrations dropping by 8% from 468 units in October 2014 to 430 last month in the heavy truck market, Isuzu Trucks increased its monthly share by 24% with 72 registrations as opposed to 58 in the previous corresponding period. New truck registrations have slowed, and in the year to October 31 there have been 4156 registrations as opposed to 4311 at the same time in 2014. The Hino truck brand follows in second place with 550 registrations (down from 620 in 2014) and Mitsubishi Fuso takes third place with 545 year to date registrations (down from 581 in 2014). Fourth placed MercedesBenz has seen its registrations improve, its up from 327 registrations to 338 year to date. It was ahead of last October with 55 registrations as opposed to 30. Used imported trucks, however, have bounced back up by 26% for the month, there were 132 registra- tions as opposed to 104 in the previous corresponding period. Year-to-date used imported truck registrations have NEW TRUCK MAKES OCT MAKE '15 ISUZU 72 HINO 57 MERCEDES-BENZ 55 MITSUBISHI FUSO 54 UD TRUCKS 27 FIAT 26 DAF 21 KENWORTH 18 VOLVO 16 FACTORY BUILT 15 OTHER 69 TOTAL 430 OCT '14 58 55 30 77 28 18 20 25 27 0 130 468 % Change 24.1 3.6 83.3 -29.9 -3.6 44.4 5.0 -28.0 -40.7 -46.9 -8.1 % of Market 16.7 13.3 12.8 12.6 6.3 6.0 4.9 4.2 3.7 3.5 16.0 100.0 Vehicle Inspection NZ increased from 1165 to 1421. Toyota leads this market with 271 registrations, followed by Isuzu on 257, and Hino with 135. USED TRUCKS MAKES YTD '15 910 550 338 545 221 188 178 166 221 51 787 4156 YTD '14 767 620 327 581 212 158 171 145 234 32 1065 4311 OCT '15 TOYOTA 41 MITSUBISHI 20 ISUZU 19 HINO 11 NISSAN 10 FIAT 5 DAF 4 MAZDA 4 ALEXANDER DENNIS 3 FACTORY BUILT 2 OTHER 13 TOTAL 132 MAKE OCT '14 18 15 17 20 11 3 1 1 % Change 127.8 33.3 11.8 -45.0 -9.1 66.7 300.0 300.0 18 104 -27.8 26.9 % of Market 31.1 15.2 14.4 8.3 7.6 3.8 3.0 3.0 2.3 1.5 9.8 100.0 YTD '15 393 178 266 190 123 19 16 33 5 17 181 1421 YTD '14 271 115 257 135 124 22 16 24 4 8 189 1165 Vehicle Inspection Specialists Vehicle Inspection NZ • Warrant of Fitness • Certificate of Fitness • Certification • Road User Charges • Registration & Relicencing • Drivers Licences • Vehicle Information • Vehicle Appraisal & Change of Ownership • Exhaust Emission Testing TALK TO THE TEAM YOU CAN TRUST: 0800 GO VINZ (0800 468 469) / email: info@vinz.co.nz / www.vinz.co.nz AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 33 TRIBUNALTALK The serious damage everyone missed Guy v Glenfield Wholesale Limited t/a Real Wholesale Cars I n this case, the purchaser, who lives near Palmerston North saw the vehicle, a 2005 Toyota Estima, advertised on TradeMe in June 2015. The advertisement listed among its features ‘AA Pre Purchase Inspection done’, ‘AA Certified Mileage’ and ‘AA Appraised’.” The purchaser says she was attracted to the vehicle because it had an AA Pre Purchase Inspection and because its mileage was AA Certified. The purchaser had a friend in Auckland inspect and test drive the vehicle and he reported that it did not appear to have any faults and drove well. The purchaser did not require the trader to provide a copy of the AA Pre Purchase Inspection report. She agreed to buy the vehicle for $9,500 and collected it. The vehicle had a new warrant of fitness issued by Autozone Services Ltd. The following day the NYK VEHICLE EXPRESS SERVICE Reliable fortnightly vehicle logistics service JAPAN to NZ PORT TO PORT / DOOR TO DOOR to Auckland, Christchurch, Wellington, and Nelson Full MPI inspection service from Kawasaki, Osaka, Nagoya and Moji SUN PHOENIX CO.,LTD. + Marine Insurance available For eFFIcIent custoMer Focused servIce contact NYK Auckland Branch 0800 695 546 Christchurch Branch 0800 695 2424 email: nz_vehicleimports@oc.nykline.com 34 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz purchaser drove the vehicle to her home in Palmerston North. While driving on the Waikato Expressway the purchaser noticed an unusual road noise and stopped the vehicle. On inspecting the wheels, she found the left front tyre was flat and the right front tyre was half flat and the spare tyre was also flat. The purchaser’s husband bought a pump, pumped up the tyres and the purchaser drove the vehicle to North Waikato Tyre Centre Ltd, which found both front tyres had perished valve stems causing the tyres to go flat. The space saver also had a faulty valve and was flat. Before replacing the tyres, the purchaser claims she sent a text message to the trader’s manager but received no response. The cost of the replacement tyres and an after hours call out charge was $440. The trader has refused to reimburse the purchaser with that sum and claims the replacement of the tyres should have been discussed with it before the tyres were replaced. The purchaser says that the vehicle’s brakes felt soft and on July 10 she took the vehicle to her mechanic who bled the brakes and drew the purchaser’s attention to the vehicle’s damaged sub frame. On July 13 the purchaser sent the trader an email notifying it that her mechanic had found structural damage to the sub frame at the front of the vehicle and that she had also taken the vehicle to VTNZ who told her the vehicle should not have passed a border check. The purchaser’s email asked the trader how it wished to proceed. Later the same day the purchaser emailed the trader photographs of the left side of the sub frame showing the damage. In a written report VTNZ says: “There is a substantial amount of distortion to the LH side of the lower front sub frame. The metal is also torn in two places. In my opinion this should have failed for Compliance and a WOF as structural damage. It appears to be historic (sic) damage due to the degree of corrosion around the damaged area. I have taken two photographs which will be kept on file. I am happy to be contacted regarding this. Paul Dekker” The purchaser produced two photographs which she says were taken by VTNZ that show the vehicle’s sub frame with what appears to be impact damage, tears in the metal and corrosion in the torn metal sub frame. On July 15 the purchaser sent the trader an email saying she wanted the trader to take the vehicle back because it was “not fit for purpose” and informing the trader it would need to transport the vehicle back Continued on page 35 TRIBUNALTALK Continued from page 34 to Auckland because it was not safe to drive due to the structural damage. The purchaser made contact with the AA, who initially told her that the vehicle had never had an AA Appraisal. This has since been acknowledged by the AA to be incorrect, one was done on December 8, 2014, at 116,159kms and this appraisal done for the trader expired on February 8, 2015. The AA informed the purchaser that they had not done an AA Pre Purchase Inspection of the vehicle. The purchaser sent the trader an email purporting to reject the vehicle on July 17, and another email on August 3 rejecting the vehicle for structural damage including tears in the frame and requested a full refund of her purchase price. The purchaser gained an estimate of$1,552.73 to repair the damage. The purchaser says she notified Autozone Services Ltd - who had issued the vehicles Warrant of Fitness - of the damage to the sub frame and sent them photographs of the sub frame. She says that Autozone promptly contacted her and offered to pay to have the sub frame replaced. In reply to questions from the Tribunal, the purchaser said that she was the sole driver of the vehicle and that she had not been involved in any accidents involving the vehicle since she had bought it. Second, that apart from a short distance into her rural property near Palmerston North the vehicle is driven on sealed roads to take her children to school and to get to her work as an unsworn employee workforce coordinator with NZ Police. The trader’s representative says he gave a copy of the AA Appraisal report to the person who inspected the vehicle for the purchaser. He says that in the course of compliance by Vehicle Safety Systems on October 3, 2014, two used tyres were replaced on the front wheels and rear sill damage in the jacking area was repaired, a low volume vehicle certificate obtained and a wheel alignment was done. The trader’s representative says it is unlikely that any damage to the sub frame was missed as part of either the border check or during compliance inspection. The vehicle also passed a warrant of fitness inspection on June 10 before it was supplied to the purchaser and he says it is unlikely the damage to the sub frame was missed during all of this checking. The trader thinks the vehicle may have been damaged by the purchaser. In its decision, the Tribunal accepted first, that at the time of sale the vehicle’s tyre valves had perished making the tyres unsafe. Second, that the vehicle has serious structural damage that was found to exist on July 10 a little less than one month after the vehicle was supplied to the purchaser. The Tribunal considers the purchaser to be a credible witness. The trader claimed that if the damage to the sub frame had been present when the vehicle passed compliance inspection it would most certainly have been detected. The Tribunal has taken what may be seen as a significant position on this: “This may be true but the Tribunal has seen previous instances of faults not being detected during compliance inspection and accepts that faults can be overlooked during compliance inspection.” The Tribunal also noted the willingness of the trader’s warrant of fitness issuer, Autozone Services Ltd, to offer to pay the cost of repairing the sub frame and thinks this tends to suggest that the damage was present when the WOF was issued. The Tribunal’s Assessor is confident that the corrosion the sub frame exhibits around the damaged areas is advanced and would take at least several months to be in its present state. It is also possible that the damage occurred while the vehicle was being test driven by another potential buyer or by a member of the trader’s staff between October 2014 and June 2015. The Tribunal tends to think the fault was more than likely present when the vehicle was supplied to the purchaser by the trader. The Tribunal upheld the rejection, ordering the trader to refund the cost of the vehicle, the cost of the tyres, the cost for the purchaser to travel to Auckland, and collect the vehicle from Palmerston North at its cost. Dealer Information Notice Dealer Information Notice MTA MEMBERSHIP INFORMATION Interests of motor vehicle dealers a priority Na ti ona l Subs cri pti on $700 Excl GST & Bra nch fee Yes No Cost Brand Year Capacity Strong & nationally recognised Since 1917 4000 members MTA is NZ’s largest dealer representative group: Franchise dealers, used dealers, motorcycle dealers, and truck dealers Yes Mediation HR Advice Yes MTA stationery Yes IT Advice Yes No Industry research No No Market analysis - regular, accurate and detailed Advocacy - pushing the causes for your industry Benefits - save money with No key business partners Business Range of Need a mentor Managers newsletters Yes No Specialist training Business Advice No Yes No Yes FURTHER INFORMATION ABOUT MTA Events / get Website Free phone togethers Yes No www.mta.org.nz CONTACT US Tony Everett 04 381 8827 AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 35 NEWSTALK Is cash king? Continued from page 24 purchase of a motor vehicle. Your first objective is then to determine if they really are a cash buyer or if they’ve just borrowed funds from somewhere else (so you know if you’re dealing with a cash conversion or a bank conversion). Ask: “When you say cash are you talking about cold hard savings or are you borrowing from somewhere else?” If you establish it really is their own cash you can then proceed with the cash conversion process, which includes:• understanding as much as you can about the customer and their circumstances • their possible future needs for finance • helping them understand that you have a finance facility available in the dealership that is competitive and convenient and that allows them the opportunity to own their new vehicle without disturbing their cash (that they may have saved hard for). NB Don’t always assume though that cash necessarily means savings. • implementing our cash conversion exercise to illustrate the benefits of borrowing from you and maintaining their returns on their cash in the bank. It’s important to note that the benefit of a cash conversion exercise is not just to show a customer how little the difference is between the interest paid on your credit con- Anywhere. Anytime. Your most important dealership information accessible from any desktop, tablet or mobile device. Faster. Easier. Smarter. 0800 623 687 www.motorcentral.co.nz 36 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz tract vs the interest earned on their savings, but more-so, their possible asset strength after the loan has been repaid due to the discipline of compulsory savings (via the payments on their credit card) vs voluntary savings. If you’re interested in learning more about our cash conversion process and increasing your finance sales through more effective techniques to convert cash/bank customers, call me now and let me help you introduce the Provident profit factor into your business. A MONTH IN THE LIFE OF… Continued from page 17 Transport fuels and fleet management conference We provided speakers and facilitators at this recent two-day conference in Auckland, which was opened by the minister of transport, and attended by industry representatives. It was an excellent opportunity to make the case for used vehicles, particularly EVs, to be included in fleet purchase and leasing decisions. Ports of Auckland: ‘Future Auckland’ study We are part of the wider group informing this study, representing the whole vehicle import industry. Our role is to ensure that any recommendations and decisions are based on facts, not just subjective opinions about the vehicle import operations of the port. Too many uninformed comments such as “the port is just used vehicle parking lot,” can influence public opinion and potentially Auckland council’s decisions, unless they are put into perspective against the background of the economic contribution made by the port and the vehicle import industry. Plus, business as usual… The issues and activities detailed above are just some of our recent work; at the same time it’s ‘business as usual’: So, on reflection, a month in the life of the IMVIA is varied, interesting, involves travel, and is at times very pressured when we have multiple deadline to meet…and all with only three staff! The IMVIA has had to constantly change and reinvent itself over its 27 years, in order to properly represent and advocate for our industry, and our current activities are quite different from the activities when the association was formed. But we’re arguably just as relevant, and just as necessary, as when the used vehicle import industry was first getting started. Max Pichon or AutoTalk’s seni list Aussie journa oks Max Pichon lo ajor m e th at ck ba past stories in the r month on ou Austrailian ite AutoTalk webs m.au – autotalk.co October 5 Vehicle affordability ‘at all-time high’ Vehicle sales continued their upward trend, with growth up 6.8% compared to the same time last year. Australians purchased 101,392 vehicles last month, with the year-to-date total at 862,832. Sales were on the up for ACT, NSW, Queensland, Tasmania and Victoria, while NT, SA and WA recorded drops of 13.2%, 3.9% and 8.8% respectively. October 6 Personal loans fuel new car sales Aussies wanting new cars are applying for personal loans in their droves, according to a new report. With the car market sitting a healthy 3.6% higher than this time last year, with small to medium SUVs growing at over 20%. FCAI chief executive Tony Weber said that vehicle affordability is at an all time high – and the marketplace is certainly listening. October 13 Japanese industry group on Australian tour Leaders of the Japanese used vehicle export industry visited Australia to research the country’s automotive scene and its potential as a market. An 18-strong group from AUSSIE TALK DIARY the Japan Used Motor Vehicle Exporters Association (JUMVEA), were on the tour, assisted by the Australian Imported Motor Vehicle Industry Association, sponsors, and other members of the used vehicle trade. Included in the delegation were chairman Hiroshi Sato and vice-chairman Yoshiharu Warashina. $50m for BMW dealership October 26 FOLLOW AUSSIETALK Australian dealer news at www.autotalk.com.au bane and begun underwriting transport, logistics and marine liability insurance in Australia and New Zealand. The announcement came off the back of BHSI recently introducing marine cargo (ocean and inland), cargo stock throughput (STP), carrier goods in transit, carriers liability and marine project cargo coverages in both countries. Carboodle cops ASIC conditions Surveillance by ASIC saw conditions imposed on Green Light Auto Group, which trades as Carboodle. The Australian Securities and Investments Commission discovered that the systems and procedures Carboodle had in place were not sufficient to comply with consumer credit laws, including meeting its responsible lending conditions. It also failed to obtain written consent to enter a property when repossessing leased vehicles. October 29 Queensland puts squeeze on lemons The Queensland Government looks set to introduce socalled ‘lemon laws’ to protect consumers from buying faulty vehicles. Its final decision depends on depending on recommendations to be handed to state parliament at the end of November, following an inquiry into their adoption. October 28 Berkshire Hathaway aims at Australia, NZ BMW is to revamp a Rushcut- Berkshire Hathaway Specialty ters Bay site the eye-watering Insurance Company (BHSI) cost of $52.8 million. opened its newest office in BrisThe huge figure is said to be the largest-ever investment for a Sydney dealership.The application to design and build the new dealership was lodged, and includes extensive demolition of existing buildings. The application proposed an 18m building envelope featuring two showrooms, a workshop area, parking, offices, parts storage, a training centre and other ancillary facilities. Full border inspections Specialists in pre‑shipment inspections in Japan & UK Cheaper Euro car imports coming: MP Minister Andrew Robb welcomed the overnight release of the European Commission’s (EC) new trade and investment strategy, meaning cheaper European cars. The EC will seek authorisation from the EU’s member countries to negotiate a Free Trade Agreement (FTA) with Australia. Robb, Minister for Trade and Investment, said the announcement is an important initial step towards launching an Australia-EU FTA. Authorised MPI inspections Authorised NZTA inspections Odometer verification Pre-export appraisal Vehicle history reports JEVIC NZ 09 966 1779 www.jevic.co.nz AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 37 Robert Barry DIESELTALK itor DIESELtalk ed Robert Barry onth looks at the m gone by on .nz dieseltalk.co r the -daily news fo rt and heavy transpo ctors. equipment se October 1 Mainfreight ‘legend’ and co-founder dies Mainfreight co-founder and company ‘legend’ Christchurch philanthropist Neil Graham died after a long battle with ill health. The logistics company announced his death on its news website It said that 71-year-old Graham had been a huge part of the Mainfreight family since 1979 when he accepted an invitation from Bruce Plested to join the operation as joint managing director. October 2 Hellaby focuses on automotive, equipment, and energy Listed investment company Hellaby Holdings says it will narrow future investment into automotive, equipment, and oil and gas and will dispose of its footwear division being Hannahs and Number One Shoes. Among the automotive and equipment brands owned by Hellaby are AB Equipment, Diesel Distributors, NZ Trucks, BNT, Autolign, HCB batteries, NZ Brake Co, and Truck and Trailer Parts. October 5 VW Amarok rolled in diesel emissions scandal DIARY tailed the number of vehicles caught up in its international emissions scandal, which includes the Amarok Pick up and the Volkswagen Caddy van. Volkswagen New Zealand general manager Tom Ruddenklau told DIESELTalk that 4639 of its New Zealand sold vehicles are included. October 7 Top NZ Scania team now head to Sweden A team of workmates from the Cable Price Christchurch branch won the Scania Top Team’s last regional semi-final in Guangzhou, China. The Christchurch team was announced the winner, and Team Kinetic from Singapore was the runner-up. Both will head to Sweden for the final round of the global competition in December. October 8 Truckometer report: Foot back on the gas? The two ANZ Truckometer indexes lifted in September; traffic flows rose on all but one road in the light and heavy traffic indexes. “If the strength in the month of September can be sustained, the economy may well be in for a better second half,” says the ANZ Truckometer. “The main risks to this picture are out of New Zealand’s control: the El Nino threat and the global outlook,” it says. Volkswagen New Zealand de- 38 | AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz October 12 October 19 Smart container weighing solution wins design award NZTA slams asbestos allegations Dunedin tech company Bison was awarded the gold pin award for its innovative product design called Weighing Jacks at the Best Design Awards. The Bison Weighing Jacks are the world’s first portable solution for calculating the weight of a shipping container in situ, rather than transporting the container by truck to a weighbridge. October 14 Direct shipping service to Americas and Europe from Centreport The Wellington port operator has announced the start of a new container shipping service that will take goods from central New Zealand directly to the Americas and Europe. The new service offered by CentrePort Wellington comes on the back of a 19% increase in the port’s container trade over the last two years. Commencing in November, Centreport Wellington says that shipping companies CMA-CGM and Marfret will be operating the new ‘Panama service’. October 15 Autonomous trucks will solve Singapore driver shortage The shortage of bus and truck drivers in Singapore has spurred its ministry of transport to research autonomous vehicle operation to cope with future demand for logistics and public transport. Reuters reports that Singapore recently revealed its future vision of passengers commuting in driverless buses along roads and motorways populated by platoons of autonomous trucks following a single driver. New Zealand Transport Agency bosses are fuming at accusations that practices around asbestos handling and transporting aren’t safe. Reports around work being carried out unsafely at central Christchurch sites were incorrect, said highway manager for NZTA Colin Knaggs. “The public’s safety has never been at risk,” he said. “The Transport Agency’s contractors are scrupulous in handling waste from all sites to protect people using the state highway system, the people we employ working on or near the material and people living or working near these sites. October 21 Fuel saving programme used by 7% of heavy fleet diesel users The Government will continue to focus on trucks and heavy commercial vehicles which it says to use about a third of transport energy. The heavy vehicle sector consumes about 20% of all transport energy – about one billion litres of diesel per annum, says Transport Minister Simon Bridges. “Many fleet operators are not aware they can make significant savings through fuel efficiency,” he says October 28 Jade terminal operating system live in Abu Dhabi Port Jade Software’s Master Terminal is now running live at three of seven planned installations for Abu Dhabi Ports. Abu Dhabi Ports is replacing its legacy system with Jade’s terminal operating system. The recent implementation at Musaffah Port is the third port to go live with the new technology. EMPLOYMENTTALK Disparity between needs and resources L ast month. we received several calls from employers concerned that, regardless of actions they took, it was proving difficult to secure skills. Common concerns showed that shortages had spread to multiple job descriptions and that staff were hard to source. Job listings increased and job boards also reported increased job listings. A South Island job expo reported there were more jobs than job seekers. In complete contrast to the experiences of employers, the unemployment rate rose to 6.0 percent in the September 2015 quarter; up from 5.9 percent for the June 2015 quarter. There were 3000 more unemployed people in the quarter, bringing the number of unemployed to 151,000; the highest number since the June 2013 quarter. Tasman/Nelson/Marlborough/West Coast had the only statistically significant change in regional unemployment rates with an increase to 5.7 percent (up 2.1 percentage points). While most of us will share a concern for the unemployed, the release of the current unemployment statistics needs to be kept into perspective. Other wealthy countries often compared to New Zealand share similar rates of unemployment. As an example, the most recent statistics from Australia that I can locate show 6.2 percent unemployment, USA 5.5%, UK 5.4%, and Canada 7%. It will probably be no surprise to learn that all of these countries have similar problems to New Zealand in locating a variety of skills staff for motor industry employers. Essentially, all these countries share a common privileged position in that we all have relatively low unemployment. While I cannot comment on the accuracy of the breakdown of unemployment data held in other countries, in New Zealand it seems that the bigger issue for employers is the accuracy of how the unemployed describe their work skills. This is an issue because many employers are dependent on supplementing skill shortages with skilled migrant workers. Work permits/residency may not be approved if Work and Income NZ have incorrectly categorised an employed person’s skills. Last month, while once again attempting reinstatement of automotive technicians on the skills shortages lists, the decades old discussion of how many unemployed technicians there are surfaced. The figure quoted this time was 146 unemployed technicians nationally. When I challenged this and asked whether the Senior Manager had actually viewed any of the employ- an employer’s chances of resolving an unfiled vacancy with offshore workers. Clearly, the same issues could occur with a variety of motor industry occupations. In our opinion, the employment outlook for skilled New Zealanders is extremely bright if you are employed in the motor industry. A candidate who is well skilled and has a reasonable employ- It will probably be no surprise to learn that all of these countries have similar problems to New Zealand in locating a variety of skills staff for motor industry employers. ment backgrounds of the claimed 146 unemployed there was admission that, no, he had not viewed the backgrounds. The situation we therefore endure is that incorrectly categorised automotive technicians remain showing on work and income records as unemployed and nobody seems to be interested in correcting the records. The scenario with technicians is but one example of how incorrectly categorised unemployed can impact ment background seems to be able to locate employment just about anywhere. In the motor industry, for now, there seems little reason for being unemployed aside from a lack of skill, or an employment background that is less than ideal. We acknowledge that there are plenty of exceptions to this rule but an unemployment rate of 6% is still low by international standards. The current politicking slamming our latest unemployment rates seems little more than point scoring. Russell Phillips is New Zealand’s most experienced automotive recruiter, and has operated a specialist recruitment company since 1991. He reports for AutoTalk on the employment market monthly. www.automotiveemployment.co.nz AUTOTALK NOVEMBER 2015 | www.autotalk.co.nz | 39 GLOBAL VEHICLE LOGISTICS NZ - JAPAN - AUSTRALIA - UK - EUROPE SERIOUS ABOUT SERVICE AUcklAND 7 sailings/month TAUrANgA 4 sailings/month Jim Shi North Island Business Development Manager 027 876 5435 NApIEr 4 sailings/month NElsoN 2 sailings/month WEllINgToN 7 sailings/month chrIsTchUrch 7 sailings/month DUNEDIN 4 sailings/month Nigel McAuley South Island / Wellington Business Development Manager 027 8765434 www.autohub.co +64 9 411 7425 info@autohub.co