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The voice of the auto industry
Issue 19
27 October 2011
Don’t get burnt dealers told
D
ealers are being warned
not to get burnt by the
emission rule changeover.
While there seems little chance
that used importers will stockpile
to the extent that they have before
past emissions rules, the numbers
of vehicles are climbing.
Custom entries of 9391 in
September equates to the second
biggest month for imports this
year, and the third biggest month
since 2008.
And the numbers coming in for
October and November look set to
be between 9500 and 10,500.
This could see 30,000 vehicles
brought in across September,
October and November, in contrast
with the 22,000 brought in those
three months last year.
Frank Willett, general manager
at VINZ, believes that if the pressure
comes from dealers, as many as
10,000 vehicles could also arrive in
December, and dealers he says are
prepared to cut it fine.
“I’ve been informed by one dealer
that he has close to 20 vehicles that
won’t comply due to land at his
doorstep Christmas Eve. That’s just
how some people operate.”
A number of dealers have also
decided to go up to Japan and
purchase.
“As I had anticipated, the emotion
of the potential damage the
emissions rule is going to cause has
taken over some of the logical side,
and stock piling is starting to occur.
“Once again I’m greatly
concerned that dealers have
waited to the last minute to do
some form of stockpiling, as it puts
a tremendous amount of strain on
the supply chain infrastructure,
and inevitably will end up in some
dealers being disappointed by not
being able to get their vehicles
through the system before the
cut off.”
The biggest danger says Willet
for dealers is if a vehicle fails on
structural repairs requiring repair
certification, or major componentry
changes such as seatbelts. “There is
a very high possibility these vehicles
will not actually be certified before
the 31st December, and once that
date’s come and gone these vehicles
are not able to be finished.
“Dealers need to be aware that
it’s very high risk if they make a poor
buying choice which means that the
certification period is quite lengthy.”
But while the numbers have
risen sharply, some dealers aren’t
willing to commit themselves as
consumer demand stagnates.
GVI’s Hayden Johnston says
he’s buying a few extra cars, but
[continued on page 8]
Emissions rule to boost balance sheets
M
any fleet and rental
businesses expect to
benefit next year from
the emissions rule, with increased
demand for domestic vehicles
resulting in higher residual values
for vehicles on their books.
Numbers of used imports have
been predicted to halve next year,
and it could take some 18-24
months for the market to recover.
This will mean higher prices for
stock already in the country.
David Pederson, procurement
manager at LeasePlan says there’s
no doubt prices will rise next year,
but says they’re already noticing
increased interest in their used
car sales.
He runs certified auctions
to dispose of the better quality
vehicles that have been de-
fleeted. The vehicles are all less
than four years old and with less
than 100,000km on the clock, and
returned in pretty good condition.
Prices range from $11,000 to
$50,000, and with 30 cars to sell,
Pederson says there’s often 300
bidders.
“The numbers have been
growing consistently since February
this year. We were probably at 150
BUNDLING
THE NEW WAY
bidders per auction at February this
year. Now we’re consistently at the
280-300 mark.
“Having an audience of 300 to
buy 30 cars is pretty significant,
that’s for sure.”
He expects it will be more
pronounced next year, but says
there are a number of factors
contributing to problems for used
con
for yotuarct RVE now
toolkit/FcREE dealer
atalogue
SELL SMARTER UPSELL FOR PROFIT
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VOYAGE
6
4
SPRING SKY
IMO
942755
Sezaki
Tel: 078 805 2550
Fax: 078 805 2750
atjcsc@autoterminal.co.jp
KOBE
NAGOYA
Kakamu, Mano
Tel: 052 661 5180
Fax: 052 661 6811
kaiun@isewan.co.jp
KAWASAKI
Fri 7 Oct
Mon 24 Oct
Mon 24 Oct
Mon 14 Nov
Sat 19 Nov
Tue 18 Oct
KAWASAKI
Nishihara
Tel: 0438 30 7488
Fax: 0438 30 7489
onishihara@autoterminal.co.jp
Sun 4 Dec
Tue 15 Nov
Tue 15 Nov
Wed 2 Nov
TAURANGA
Sun 4 Dec
Tue 15 Nov
Tue 15 Nov
Wed 2 Nov
NAPIER
Sat 3 Dec
Mon 14 Nov
Mon 14 Nov
Tue 1 Nov
WELLINGTON
Sun 4 Dec
Tue 15 Nov
Tue 15 Nov
Wed 2 Nov
LYTTELTON
KIWI CAR CARRIERS
Jayne Bloemendal
Tel: 09 373 3375
Fax: 09 379 9477
jayne@kiwicar.com
SEAWAY AGENCIES
Ryan Lloyd
Tel: 07 575 9684
Fax: 07 575 9222
ryan.lloyd@seaway.co.nz
TAURANGA
Olsen Shipping Ltd
Allan Germain
Tel: 06 835 1913
Fax: 06 835 1250
allan@olsenship.co.nz
NAPIER
KIWI CAR CARRIERS
Kevin Wilson
Tel: 021 925 401
Fax: 04 589 5223
kevin@kiwicar.com
WELLINGTON
KIWI CAR CARRIERS
Stacey Lemon
Tel 021 725 404
stacey@kiwicar.com
LYTTELTON
Please kindly place your bookings at each loading port: Nittsu, Isewan, Shinkyo and Auto Terminal Japan.
Cargo for vessels not calling Kawasaki, Kobe or Kisarazu will be transported to the nearest load port.
All Tauranga and Napier units will be land transported from Auckland
Schedules, Ports and Vessels are subject to change without prior notice
Thu 1 Dec
Sat 12 Nov
Sat 12 Nov
Sun 30 Oct
AUCKLAND
AUCKLAND
Sun 30 Oct
Sat 29 Oct
YOKOHAMA
KISARAZU TRS
KISARAZU
Fri 7 Oct
Mon 24 Oct
Mon 24 Oct
Fri 11 Nov
Fri 18 Nov
KISARAZU
Kiwi Car Carriers Ltd
Yoshida, Tsugawa
Tel: 044 280 2366
Fax: 044 287 1533
noa yoshida@ocnis.nittsu.co.jp
ocn1478@ocnis.nittsu.co.jp
KAWASAKI TRS
Fri 7 Oct
Thu 20 Oct
Mon 24 Oct
Thu 10 Nov
Thu 17 Nov
Sat 29 Oct
Thu 27 Oct
Mon 17 Oct
NAGOYA
NAGOYA TRS
Fri 7 Oct
Wed 19 Oct
Fri 21 Oct
Wed 9 Nov
Wed 16 Nov
Wed 26 Oct
Sun 16 Oct
KOBE
RORO Service from Japan to New Zealand
www.kiwicar.com
Level 11, 2 Commerce Street, PO Box 106003, Auckland 1143, New Zealand. Phone +64 9 373 3375, Fax: + 64 9 379 9477, + 64 0800SHIPKIWI
Kuroda
Tel: 0725 33 4361
Fax: 0725 22 2397
gaojing@shinkyo trport.co.jp
kuroda@shinkyo trport.co.jp
Jordi, Naoki
Tel: 03 6436 5534
Fax: 03 6436 3329
kiwi.japan@kiwicar.com
KOBE TRS
OSAKA
Thu 6 Oct
Wed 19 Oct
Fri 21 Oct
Tue 8 Nov
OSAKA TRS
15
6
7
16
CUT OFF DATES
HOEGH CHENNAI
POLARIS ACE
HOEGH XIAMEN
HOEGH CHENNAI
Tue 15 Nov
Fri 28 Oct
Wed 26 Oct
Sat 15 Oct
OSAKA
SALES JAPAN
IMO
8507652
HEIGHT 3.5 M
WEIGHT 12.5 MT
HOEGH CHENNAI 16
HEIGHT 5.1 M
WEIGHT 80 MT
IMO
9153549
POLARIS ACE
HEIGHT 4.6 M
WEIGHT 80MT
IMO
8507652
HEIGHT 3.5 M
WEIGHT 12.5 MT
HOEGH CHENNAI 15
VESSEL NAME
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editor’s note
Grinding
out a
victory
W
hile seeing Richie
McCaw lift the trophy
on Sunday night was
for many school boys
a wondrous sight, no doubt for
many in businesses dependent
on consumer behaviour the
moment was slightly bittersweet.
It was without doubt a great
occasion, and seeing a New
Zealand captain lift the trophy
was something special.
And there are plenty of
additional blessings from an All
Black win: We were spared the
inevitable teeth gnashing and
ugly blame game that follows All
Black defeat at the World Cup.
And it’s also hard to image
the depth of collective grief New
Zealanders would succumb to
losing the World Cup on home
territory. I’m sure they’d be
piping Prozac through the water
supply in no time.
Yet for all the triumphs, it’s
clear that many businesses did
not do well out of the cup, as
kiwis sat glued to their screens or
frittered earnings away.
The only interest in cars for six
weeks was as a way of transporting
multiple supporter flags.
Perhaps it was the same story
in 1987, and the lesson was
quickly forgotten; or perhaps
relentless media hype had a part
to play.
Nevertheless that’s all behind
us now, and businesses can focus
on reconnecting with customers.
Looking at the vehicle fleet as
an economic indicator, it seems
that while consumers remain
reluctant to spend, business
spending has grown on last year.
Businesses are looking
forward, and don’t see any further
deterioration of the economy;
most see steady growth.
Whether consumers are
equally comfortable is uncertain.
The sense of the world as being a
dangerous and uncertain place is
skilfully presented to us regularly
through the news media, which
doesn’t do great things for
confidence.
And until it’s clear that we
aren’t all about to fall off an
economic precipice, many
consumers may leave their
wallets at least half shut.
Yet as the confidence returns,
so will the spenders.
It’s clear that the growth will
come, but it seems inevitable
that it won’t come as fast as
many would like.
Stian Overdahl
Editor
Editor
Stian Overdahl
editor@autofile.co.nz
021 247 7782
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Brian McCutcheon
brian@autofile.co.nz
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021 455 775
Designer
Adrian Payne
arpayne@gmail.com
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www.autofile.co.nz | 3
news
‘Mischievous’ Fair Go
stitches up Hyundai
A
lleging confidential
settlements and mass
faults among new diesel
vehicles, TVNZ’s Fair Go
ran an item last Wednesday with
Hyundai in the spotlight.
“Over the last four years,
hundreds of brand new diesel
cars have grinded to a halt, all
different makes and models, tens
of thousands of dollars worth of
damage…” opened the segment.
The story revolved around an
83-year-old John de Lautour who
had bought a new Hyundai 2 litre
i35, for $54,000.
After 14 months of ownership
the engine ground to a halt –
investigations by the dealership’s
workshop revealed serious damage
to the fuel pump, which was full of
metal filings and rusty sludge.
A repair bill for $19,803.53 fell
to Lautour.
Fair Go contended that the
warning light, indicating water
in the fuel, didn’t light up, was a
manufacturer fault, and therefore
the repairs should be paid for
under the new vehicle warranty.
Hyundai maintained that the
damage had been caused by
contaminated fuel, both to the fuel
pump and sensor, and therefore the
warranty would not cover the repairs.
Mike Hurley of Diesel Services
Auckland, says he was contacted
by a Fair Go reporter regarding
the case, but his opinion didn’t
make it into the item.
“As far as I could see, Hyundai
didn’t have a case to answer.
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Hyundai New Zealand's
Chief Operating Officer Tom
Ruddenklau appearing on Fair Go
The guy who owned the vehicle
probably put fuel out of some sort
of other container into it rather
than buying it from a fuel station.”
Hurley says that even if a
warning light comes on, by that
point it’s all over.
“You’re into some expensive
equipment if you’ve got
contaminated fuel.”
But it may be Fair Go’s account
of the hazards of diesel ownership
that are worrying for the industry
generally, with a voice over
suggesting to viewers that
contamination is widespread:
“Since the new emission
standards were introduced four
years ago… new diesels of all
brands have been quietly dying.”
Motor Industry Association
chief executive Perry Kerr was
interviewed by Fair Go and
appeared on the piece.
“As we tried to explain to
Fair Go, three-four years ago
there was quite an issue with
contaminated fuel, there
was water, diesel bug, or
contamination from old tanks,
and we were getting 30-40 cases
a year that we became aware of.
“Today we’re lucky to get five
cases a year, that are coming to
the car company’s notice.”
Kerr says in the case of Lautour
it was definitely contaminated
fuel that caused the damage.
“The test result showed not
only excessive water, double
the maximum allowed in the
regulations, the regulations
have got 200 ppm and this
had 395ppm, but normally you
don’t expect to see more than
70 - 80 parts, so it was incredibly
excessive water.”
Kerr says that the customer
was told to talk to the fuel
supplier which he used the most,
which happened to be Gull. He
was also told to go talk to his
insurance company.
“He is a farmer we strongly
suspect that in fact the diesel
came from his farm tank.
“And that’s why he wasn’t
talking to anyone else about
what happened, and was just
trying to get Hyundai to pay half
of his repair bill.”
Fuel contamination issues are
today very minor says Kerr, as
fuel companies have replaced
their old metal fuel tanks with
fibre glass, and farmers know the
risks of using substandard fuel.
“Because of the issues
fuel companies had with
contaminated fuel, and common
rail diesel in particular, and
the payouts they had to make,
they’ve cleaned up their
own house-keeping quite
dramatically.”
Kerr says that numbers
of diesels with issues from
contaminated fuel number at
most five a year now, something
which Fair Go wilfully ignored.
“They were mischievous to
the extent that they said how
4 | www.autofile.co.nz
news
Used importers look to Audi Q7s
A
t last count on Trade Me
there were 60 plus used
Audi Q7s on offer, most
ranging in year from 2007-2011.
The vehicles on Trade Me are
a mix of UK-sourced and New
Zealand new vehicles, with a
number of well-known import
yards in on the UK action.
The Q7 is one of the more
popular models sourced out of
the UK, leading some to question
whether there isn’t an oversupply
that could force prices down on
the model.
Indeed, the 60 vehicles
currently listed on Trade Me
compares with only two used
imports sold in February (17 were
sold new).
However across the year
the number has been inching
upwards: 11 used imported Q7s
were sold last month (12 were
sold new). And a query of the age
profile of these vehicles from NZTA
shows that the vehicles are all
relatively new: four were one year
old, five were three years old, and
two were four years old.
The prices on Trade Me for a
used import range from $64,990
for a 2007 model and upwards,
depending on age and mileage.
Gavin Pearce, of International
Motor Group in Auckland says that
the market for used import Q7s is
a natural follow on from the hole
created once diesel SUVs were
no longer available out of Japan,
and the consequent high cost of a
second-hand SUV.
He doesn’t believe that there
are currently any issues with
oversupply.
“There’s nothing in the used
import market that fits the pricing,
even a Toyota Prado is the same price
if you can find one [second-hand].
“It’s quite an open market.
They’re still hard to buy up in the
UK, there’s not that many of them
around. But they definitely fit in
here where there’s a gap.”
Pearce says that many owners
of NZ-new vehicles hold on to
their vehicles, meaning there’s a
shortage in that area of the market.
It’s a model that will work
equally well for other diesel SUVs
out of the UK such as the BMW X5
he says.
“It comes down to the fact that
it fits a demographic and pricing,
and people in New Zealand need
seven-seaters, diesels that can tow
the boat.”
However in a small market,
a rush for one model could
destabilise prices.
Rumours of large shipments
of Q7s flooding the New Zealand
market and forcing prices down
are touted as a cautionary tale for
would-be importers of vehicles
from the UK.
One person familiar with the UK
market says that the interest of NZ
buyers at UK auctions may have
shored up prices there, though he
says demand for more expensive
vehicles in the UK is weak due to
the parlous state of their economy.
But Pearce says that while prices
have come down a bit, the costs
of landing expensive vehicles out
of the UK and the lack of available
funding means that the market
is not a free for all. “The price has
basically found itself.
“A dealer can put what he likes
Flooding in Thailand
halts production
A
number of vehicle
manufacturing plants
in Thailand have been
closed due to the extreme
flooding that is affecting the
country.
Nissan’s John Manley says
that while plants aren’t directly
affected, component suppliers are.
“We’ve got some early advice
that the factories have been
closed for a couple of days, but it
seems to be the same story, the
factory itself isn’t damaged, but
the suppliers further up country
may be damaged. At this stage
it’s only preliminary advice, we’ve
really got no certainty around
what issues they face.”
With the vast majority of utes
for the New Zealand market
being built in Thailand, suppliers
could face further supply issues,
with numbers still recovering
after the production slowdowns
caused by the Japanese
earthquake.
Speaking last week, Toyota’s
Steve Prangnell said that their
plants had been closed for a
week and half.
“Our three plants are safe, but
they’re shut because some of our
suppliers are under water.
“Thailand is a global supplier
of Hilux, and probably half of that
will be export volume. So we’re
going to be affected, there’s no
doubt about that.”
More recently TMC
announced that the flooding
had resulted in an output loss of
37,500, with impacts on plants
in the region including Japan,
and worries that the end of year
recovery could be affected.
Honda production in the country
has also been badly affected.
news
[continued from page 4]
‘Mischievous’ Fair Go stitches Compliance papers
sought for Euros
up Hyundai
many in the last four years – 0.2
of 1%. But the numbers were
higher three-four years ago, and
now they are very small. They
obviously didn’t publish that part
of the interview because that
didn’t fit with the story.”
Kerr says they also ignored the
fact that any liability would lie with
the fuel company that supplied the
diesel, not the manufacturer.
“I used to feel that Fair Go had
some credibility, I just don’t after
this exercise. We went out of our
way to provide information to
them, to show that if it was an issue
with fuel then the oil companies
would front up. And they just
completely decided to ignore it all.
“They were running out of
time and it had to go to air last
Wednesday.”
Kerr believes that the show
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U
sed importers who
have concentrated on
importing European
vehicles from Japan may face a
difficult choice next year, with the
emissions rule hitting hard.
Many ’05-’07 Euros in the
Japanese fleet don’t comply
with the triple-digit standard –
seemingly because manufacturers
did not comply their vehicles to a
higher standard when there was no
need to do so.
Dealers specialising in European
imports say that in all likelihood
they’ll have to focus on Japanese
vehicles to make up the numbers.
It’s expected that many of these
vehicles would comply with the
Euro 4 standard (required in Europe
since 2005), but seeking certificates
of compliance from some local
distributors isn’t feasible.
The Imported Motor Vehicle
Industry Association (IMVIA) has
sought to tackle the issue from the
Japanese end.
Technical Service manager
Malcolm Yorston says one of their
New Zealand based-members,
that has a Japanese company, is
currently negotiating with some
of the European manufacturers
in Japan.
It is hoped that they can
provide empirical evidence of Euro
4 compliance for some of their
model ranges.
There may be a charge involved
says Yorston, but if they can get the
information it may allow some of the
Euro models to continue to comply.
Yorston believes if the process
successful, information could be
made available to members so they
can confidently bid on auctions.
Emissions proposal
being considered
➡
➡
➡
➡
also twisted the final outcome.
“They arrived at Hyundai at
10 am, they were still there at two.
“They got frustrated that Tom
[Ruddenklau] kept saying it’s
not a warranty issue we’re not
paying, and they were getting
really annoyed.
[The reporter] wanted to
be able to go and say ‘Well I’ve
negotiated this great deal’. On
the show he gave the impression
that a deal was negotiated, but
that was what was on the table
back in June, it was just bizarre.”
Ultimately says Kerr the focus
could have been on any one of
the 15 MIA members who sell
common rail diesel vehicles.
“Fair Go didn’t want to know
any of it, they didn’t talk to Gull,
they just completely wanted to
stitch Hyundai up.”
T
he New Zealand Transport
Authority could soon voice
an opinion on the IMVIA’s
proposal to test certain Japanese
domestic vehicles with doubledigit emission codes for Euro 4
compliance.
As Autofile covered last issue,
the Association expects that many
of the vehicles with the later
emission codes could be proven to
comply with the Euro 4 standard,
meaning they could be allowed to
be imported next year.
Testing would take place in
recognised testing facilities.
NZTA spokesperson Andy
Knackstedt says a response could
come this week.
“The NZTA has received an
informal proposal from the
IMVIA seeking our views on a
hypothetical scenario involving
an alternative process for a used
imported vehicle to demonstrate
compliance with emissions
standards in New Zealand.
“We’re currently reviewing the
scenario and expect to reply to the
IMVIA this week.”
JAMA lowers Japan sale expectations
T
he Japanese Automobile
Manufacturer’s Association
has released a revised
forecast for the Japanese domestic
market, predicting a 14.5% drop
on 2010.
Sales of standard and small
passenger vehicles (excluding
minis) were expected to number
2,523,000 this year, down from
2,927,602 in 2010.
This has been revised downwards
by 100,000 vehicles, meaning that
sales this year of passenger cars are
expected to make up only 83% of
2010 figures.
news
Rental buy up to boost new car numbers
U
nsatisfied demand
from rental companies
could add some extra
momentum to the new vehicle
market as it heads to year’s end,
currently up 4% on 2010.
Sales of new vehicles to rental
companies numbered slightly
less than 800 in September,
accounting for 14% of the
month’s total sales, but still down
on the 1200 in September 2010.
With the stock shortages midyear some rental companies were
forced to delay purchasing of
new vehicles, either by running
out vehicles for longer, or other
measures.
Cars are normally run for
15-17 months by a company,
encompassing two summers and
a winter.
But companies spoken to by
Autofile suggest that delayed
buying will take place in the
coming months.
Operators of second tier rental
companies that rely on Japanese
imports will also have to secure
vehicles before year’s end.
Toyota could benefit from
extra sales, as they’re traditionally
the largest supplier of rental cars
in the country.
Toyota’s general manager
Sales and Operations, Steve
Prangnell, says earlier this year
the company extended some
rental leases, and also put
Signature Class used Corollas and
Camrys in to fill the void over the
winter months – vehicles which
will all be replaced with new
vehicles in the fourth quarter of
the calendar year.
The sales will add to Toyota’s
totals, and with new vehicle
launches Prangnell is bullish
about the company’s
prospects.
“When we couldn’t get supply
we extended leases on quite a lot
of our product, so I’m expecting us
to have quite a big fourth quarter.
“We’ve just launched the Yaris
this week. We’ve got a big wave of
new models coming, we’re going
to refresh basically 90% of our line
up over the next 12 months.
“I reckon we’re going to sell
somewhere between 5-6000 cars
over the three month period.”
Rental companies service
both corporate and leisure
customers. When the GFC first
hit, the corporate market was
hit hard, as business slammed
their cheque books shut. When
it came to cutting costs, flights,
accommodation, meals and
rental cars were top of the list.
Some spoken to say that
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25/10/11 2:28 PM
news
Don’t get burnt dealers told
nothing significant.
“The way that sales have been
because of the Rugby World Cup,
the way the Yen’s been, it’s been a
pretty hard call for most guys.
“It’s hard to stock up when you’re
not selling anything, and when
what you’re buying is costing you so
much. We’ve increased numbers by
about 100 but that’s about it.”
Johnston says the Cup has
dealt something of a blow to many
businesses.
“When things should have
been warming up, things were
slowing down.
“The Cup just about crippled the
country. I don’t think people realise
that but it went right through all
industries, I know guys that have
got businesses from car dealers to
hospitality to real estate, and they’re
pulling their hair out.
“And if it doesn’t get immediately
better, I think you’re going to find
quite a few people in hot water.”
Not a rugby fan, Johnston says
he’s happy with the result but is
definitely glad it’s over.
“I just hope we can go forward
now and rejuvenate the economy.”
One business affected in an
obvious way by RWC was Ports of
Auckland, with the Captains Cook
Wharf adjacent to Party Central used
to hold 10,000 rugby fans, rather
than operating as a RoRo berth.
But General manager, Ports
Services Wayne Mills says that the
Port coped “surprisingly well” with
the extra challenges.
“There have been extraordinarily
high volumes coming through, but
we’ve managed to cope.”
Mills says the scheduling of
vessels has been most opportune,
with decent periods between
arrivals, and schedules of other
Trans Future 7 Voyage 49
osaka 8 Oct, Nagoya 11 Oct, Kawasaki 15 Oct,
Auckland 2 Nov, lyttelton 4 Nov, Wellington 6 Nov, Nelson 8 Nov
Modern Express Voyage 2
Auckland 2 Nov, lyttelton 4 Nov
Trans Future 5 Voyage 53
Auckland 17 Nov, lyttelton 19 Nov, Wellington 21 Nov, Nelson 23 Nov
The Cup has caused some businesses
more grief than joy
vessels fitting around the car
carrier arrivals.
Transporter companies have
also gone the extra mile says Mills,
focusing on the Port when required.
“It’s all part of the city doing
its part to make the Rugby
World Cup a success. I think all
of our customers have been very
understanding that we need to put
New Zealand’s best foot forward
during an international event.”
While the Rugby World Cup
is over, it remains to be seen
whether the mantra “business will
pick up after the Cup” is fact or
wishful thinking.
Used import sales around the
country are tracking down, or at
best staying flat (See page 16).
Dealers buying vehicles on the
basis of a strengthening market
could find themselves in trouble
if consumer demand doesn’t
materialise, for whatever reason.
Willett says that with the extra
vehicles arriving on the wharves,
essentially vehicles are being
complied that would have arrived
and been complied next year if the
emissions rule wasn’t coming in.
“I think the average market
demand is about 5500-6000 units
a month, so each month we’re
complying about 4-5000 units that
should have come in the other side
of Christmas-New Year’s.”
Dealers will be tying up capital
that will prevent buying in 2012
says Willett.
“They’re also going to be
stretching their facilities in yarding
and storing these vehicles. They’ll
have little or no interest in buying
new stock until they free themselves
up from some of the stock they’ve
overstocked themselves with.
“And if monthly sales figures
stay flat, I think you’re going to see
an extended period of time after
the New Year of actually getting the
vehicles out into the market.”
If dealers start to run into cash
problems, the market may have to
contend with a wave of vehicles
being sold cheaply.
“March-April you might start
to see some incredibly large
discounting of stock to try to
encourage sales to increase,”
says Willett.
“The problem we’ve had in
stockpiling previous emission rule
changes is the fact that the public
becomes aware of what’s happened
if they’re in the market to buy a
vehicle, and they go from dealer to
dealer to dealer to find out who’s
most desperate, and who will cut
them the deal they want.
“Occasionally you will find
dealers who run very thin, and they
will be forced to cash up stock to
meet their commitments.”
AUTOHUB UK
UNDERGROUND
GOING UNDERGROUND
SO YOU DON’T HAVE TO!
For all your UK Vehicle Logistics Requirements
Contact DANNY KNIGHT
DDI 09-411-9789 or 027 444 3433
email: info@autohub.co.nz
www. autohub.co.nz
news
VEHICLES
WANTED
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miles motor group
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NZ NEW CARS AND COMMERCIALS
PAUL CURIN
0274 333 303
pcurin@miles.co.nz
News in brief
Trade Me may float before Xmas
Fairfax Media may float a portion of Trade Me as early as next month,
to beat the Christmas run in, reports Interest.co.nz.
Fairfax announced its intention in August to float 30-35% of the
internet company in an Initial Public Offering (IPO).
Trade Me; which it bought in 2006 for $700 million from its creator
Sam Morgan, will be listed on the NZX.
While the buy-up by Fairfax was sneered at by some
commentators at the time, Trade Me has been ‘a jewel in the crown’
for Fairfax, with steadily increasing revenue.
However Fairfax itself recently reported a full-year net loss of
$A390.9 million, and it says proceeds from the Trade Me share
offering will be used to reduce debt and possibly help to increase
dividends.
The site is believed to be worth about $1.7 billion, and claims to
have 2.7 million active users who list 5.5 million auctions per month.
Fairfax’s board has also announced that a partially-floated Trade
Me may look outside New Zealand to boost growth.
The board will maintain control of the site through their 65%
majority.
Strikes at Toyota’s Altona factory end
Audi VW
WE PURCHASE NZ NEW CARS AND COMMERCIALS
FOR ALL OUR FRANCHISES
Brett Harris
029 293 1232
Brett@FarmerAutoVillage.co.nz
www.inghamdriven.com
Karl Briggs 0274 721 551
karl.briggs@inghamgroup.co.nz
www.farmerautovillage.co.nz
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Workers at the Toyota Australia’s plant in Altona are likely to end after
deal was struck between the company and unions.
The deal, a 13% pay rise over 42 months, still has to be approved
by a worker vote this week.
But the union called off a planned strike last Friday that would
have further disrupted preparations for the new-generation Camry.
GoAuto.com.au reports that the deal means production of the
seventh-generation Camry will get underway without the threat of
industrial action, including overtime bans, though the timing of the
launch may be affected by the action.
The vote cannot be taken because there is only a skeleton staff
working during a week-long shutdown to gear up for production of
the new model.
7 year maintenance programme for Ferrari
BUYING NOW
NZ NEW CARS
AND COMMERCIALS
Contact: Rhyan Letman
 Nissan
 Subaru
 Volkswagen
 Audi
 Peugeot
 Skoda
 Toyota
 Honda
 Suzuki
 Mitsubishi
 Holden
 Ford
 Kia
 Hyundai
 Mazda
0274 422 398 rhyan.letman@smcourt.co.nz
TO ADVERTISE HERE CONTACT:
Ph 0508 288 863 or 021 455 775
advertising@autofile.co.nz
All Ferrari supercars sold after this week in Australia and New
Zealand will be covered by a new seven year inclusive maintenance
programme that covers all scheduled maintenance.
The programme covers the scheduled maintenance at standard
service intervals (20,000 km, or once a year, with no restriction on
total kilometres) along with the original spare parts, engine oil and
brake fluid required.
The programme is fully transferable to new owners.
“The Ferrari Genuine Maintenance programme is the latest facet in
a range of customer services aimed assisting new and existing Ferrari
owners with the ownership of their Ferrari,” says Kevin Wall, General
Manager for Ferrari in Australia and New Zealand.
Ferrari have a number of programmes that give “peace of mind” to
owners, including Ferrari Classiche, which holds a list of records for
value and auction prices.
Cars may also be inspected to check that every aspect of the car is
original; owners may also choose to have their Ferraris fully restored to
original blueprints for their model held at Ferrari’s home in Maranello.
tech report
The iMViA Technical Report is proudly brought to you by leading certiﬁcation service provider, ViNZ
from the trade and for the trade
Ex UK market used vehicles
requirements and pit-falls
T
here are increasing numbers
of used cars being sourced
from the UK. What do you
need to ensure you have the correct
documentation and the vehicle will
comply in New Zealand.
The first thing you need to do
is to obtain is a scanned copy of
the V5C Registration Certificate,
sometimes this is hard to do
especially if the vehicle is going to
auction and you can only obtain
them once you have purchased the
car. If you can’t get the V5C have your
agent take a photo of the “Statutory
Plate” referred to as the “Whole of
Vehicle Approval Plate” (often this is
a decal rather than a plate) and email
it to you to have it checked out prior
to agreeing to purchase.
The Statutory Plate” contains
the 17 alpha/numeric character
VIN number and the EU approval
number that is formatted as follows:
“e1*98/14*1234*56” and can be
broken down as follows:- e1 = the
Jurisdiction (country) where the
approval was granted; 98/14 = the
EU directive setting out applicable
standards; 1234 = the approval
number; 56 = the number of the
revision of the original approval.
The approval number is also
found on the V5C of most cars from
2003/04 onwards, earlier cars don’t
always have this approval number
on the V5C although it is highly likely
it will be on the “Statutory Plate”
do not do this and it is necessary to
establish the link from the previous
owner through the auction house
and agent to you to satisfy the NZTA’s
requirement to establish “clear
title” to the vehicle before they will
permit an MR2A to be issued and
registration to take place.
Every vehicle exported from the
UK must be reported to UK Police.
They will check whether the vehicle
has finance owing, or has been stolen,
this may take a few weeks. If they
discover any anomaly, and the vehicle
has been shipped, they will demand
the return of that, and every other
vehicle on that shipment to the UK.
We have had discussions with
NZTA on the role of the UK Police
as there may be an opportunity to
reduce the document trail.
Light commercial vehicles are
not as easy to process as the UK
Type Approval Regulations for Light
Commercial Vehicles only require
compliance with: Noise emissions
 Exhaust emissions
 Steering effort
 Brakes
Leaving approximately 20 other
items including Lighting, Rear
vision mirrors, External projections,
Seatbelts, Seatbelt anchorages, etc.
that need proof of compliance.
The IMVIA has negotiated with
a number of UK manufacturers
and is able to source Statements of
Compliance (SoCs) from many of
them. We are also able to source Ford
SoCs from Ford NZ.
There are a number of companies
in the UK that will, for a fee, do a
check on the status of vehicles
prior to purchase as Motor Web
(VIR), Lemon Check etc. do in New
Zealand. We are able to source “HPI
Gold” checks that will verify the
vehicles ID, identify if the vehicle
is stolen, or, has finance owing,
is an insurance write off for crash
damage or theft and other items
including checking against the
“National Mileage Register”. It
also gives you a “Glass’s Valuation”
giving new, retail and trade price
indicators (if available). We are able
to provide these checks in real-time
at a significant saving off the cost
you will pay going on-line to the
UK yourself. An example of the HPI
check is shown on this page. Note
the “Condition Alert” towards the
bottom of the page. Contact us on 0
8000 46 842 get started.
There are many more aspects and
idiosyncrasies in the UK market that
the IMVIA advises members on, on
a daily basis; for those readers who
are not members and want to learn
more please consider becoming a
member of the association, call us on
0 8000 46 842 to learn more about
membership, the advice and support
we are able to provide.
Specialists in Pre Shipment Inspections
Japan
Singapore
in
ng
attached to the car.
98/14 is recognised by the
NZTA as meeting all required safety
standards with the exception of
Frontal Impact but including Euro 2
exhaust emissions.
2001/116 is recognised by the
NZTA as meeting all required safety
standards including Frontal Impact
and Euro 3 exhaust emissions.
2007/46 has just been recognised
by NZTA as meeting Euro 4 exhaust
emissions which is required for all
used diesel cars now, and used petrol
cars from 1 Jan 2012.
There are many diesel cars being
imported from the UK with either
98/14 or 2001/116 approvals, at face
value these cars are non-compliant.
However there is information
available on-line that NZTA accept
as proof of Euro 4 compliance. The
IMVIA has handled hundreds of
applications for NZTA acceptances
for these vehicles; this is a free service
for IMVIA members, non-members
are charged a fee.
For registration purposes NZTA
require proof of title, this includes
invoices and receipts establishing
the ownership trail back to the
last registered keeper shown on
the V5C. In many cases your agent
will have transferred ownership
into their name and invoiced you
directly so the ownership trail is
confirmed; however a number of
agents including auction houses
with MALCOLM YORSTON
IMVIA Membership and
Technical Services Manager


New Zealand
Full Border Inspections
Biosecurity Inspections
JEVIC NZ


Structural Inspections
Odometer Verification
09 966 1779


Pre Export Appraisal
Vehicle History Reports
www.jevic.co.nz
new cars
3 Series
sedan
unveiled
B
MW have lifted the lid on
the sixth-generation of
their bread-and-butter model
the 3 Series. The unveiling was
live streamed through BMW’s
Facebook page, from Munich, and
purists could also enjoy the full
hour and a half show in German.
The vehicle retains its
rear-wheel-drive and 50:50
weight distribution, as well as a
chassis that’s 50mm longer and
37mm/47mm wider front and
back than the current model.
A choice of three engines
will be available for from launch:
diesel, a six-cylinder petrol, and
a turbocharged four-cylinder
variant in the BMW 328i, the
latter targetting reduced fuel
consumption and emissions.
With the sedan BMW are
claiming the mantle of ‘first
carmaker to offer an eightspeed automatic gearbox in the
premium mid-size segment’.
The 8-speed box can be specified
with either any of the petrol or the
diesel engines in the range, and links
up with the Auto Start-Stop function
that comes as standard.
According the company, it
allows the new BMW 3 Series to
match or outperform models
fitted with the standard six-speed
manual gearbox in terms of both
fuel economy and emissions.
“The new eight-speed
automatic brings together shift
comfort, dynamic performance
and efficiency of the highest
order, making it the perfect
partner for the new sedan’s
dynamic potential.”
Despite longer dimensions, the
new model has a a kerb weight
40 kilogrammes below that of its
predecessor.
As one might expect there’s
a number of nifty features,
including the latest full-colour
Head-Up Display, which projects
key information – in sharp
resolution – onto the windscreen
so it appears directly in the
driver’s field of view.
Also available is Surround
View with Side View and Top
View, which gives a bird’s-eye
perspective of the vehicle and the
area around it.
Hi-tech safety features include
the Lane Change Warning System
and Lane Departure Warning
System with camera-based Collision
Warning system, offered for the first
time in a BMW 3 Series Sedan.
All-new Yaris launches Dealers gear up
T
for Ellerslie
oyota has launched its all
new Yaris, with the thirdgeneration vehicle combining “the
new corporate face of Toyota with
European-inspired styling cues.”
The body is 100mm longer
that its predecessor, with a 20mm
reduction in height, while the 50mm
wheelbase increase sees extra
legroom in the back seat.
Available in two model grades,
the YR and YRS, the YR three and five
door models have a 1.3 litre engine
and automatic transmission. The five
door variant also offers the choice of
manual shift.
YR’s improvements
over the current 1.3
litre Yaris model
are Vehicle
Stability
Control,
larger steel
wheels,
MultiInformation
Display
(MID) and
improved audio technology.
The 1.5 litre five door YRS is
available only with an auto gearbox,
and upgrades over the current
1.5 litre model are cruise control,
improved audio features, alloy
wheels and front fog lights.
Toyota New Zealand’s Neeraj
Lala says they’re hoping the vehicle
will appeal to existing compact car
buyers, as well as customers moving
from a larger vehicle.
“Small vehicles make up around
13% of the New Zealand new vehicle
market, attracting cost-conscious
buyers and those moving away
from larger vehicles. We’re confident
that this new Yaris will appeal to
a broader range of drivers with its
blend of value for money features
and Toyota’s innovative packaging.”
RRP is $23,290 for the YR
three door model with automatic
transmission, while the five door
manual and automatic versions
are priced at $23,790 and
$25,290 respectively. The YRS
model is $27,490.
T
he Ellerslie Intermarque
Concours and Classic Car
Show will be held February 12
next year, and will again see
Archibald & Shorter, Giltrap Audi,
Giltrap Prestige, Independent
Prestige, Andrew Simms, and
North Shore Motor Group
showing latest models.
But the real pulling power
comes from the some 700 classic
restorations and “hobby” cars,
with over 70 car clubs present.
The event’s marketing
manager David Burke-Kennedy
says publicity this year is being
stepped up to
attract more public interest –
“Though it is thousands of club
members who represent the
most affluent market from the
dealers’ viewpoint.
“Many have collections or
individual cars worth hundreds
of thousands of dollars but often
drive relatively modest vehicles
as every day transport.”
The Show Host Club this
year is the Auckland Mustang
Owners Club. The Marque won
the Concours event last year and
inspired the clubs’ display theme
“Power of the Marque.”
Protecta profile
Steve Hilson S
teve Hilson is dealer principal
at Jerry Clayton BMW, at
Takapuna on Auckland’s North
Shore. The dealership has 47 fulltime
staff and six part timers, including
6 sale executives, a F&I manager, a
general sales manager, and a used
car manager.
Hilson says while the year has had
its challenges, overall there’s a lot of
confidence out there, and he says
new additions to the brand like the
X3 and 1 Series help the process.
“The new car business is really
gaining momentum, we’ve had some
very good new car months this year.
There is an air of confidence out
there. If the enquiries are coming
through then our closing ratios
are good, and that’s probably the
location in Takapuna, because it is a
destination.
“Ideally you want all five
departments firing at once – new
cars, used cars, service and parts, and
F & I – at the moment we only seems
to get four per month.”
A used car manager position was
also created at the beginning of the
year, which Hilson says has made a
huge difference. It’s part of a strategy
of attracting younger buyers to the
dealership and the brand.
“One of my core objectives is to
lower the age of our average buyer,
we need to target that younger
audience. Using models such as the 1
Series and the X1 serves to do that.
“You see that transition from
people coming in to buy a used car
for $30,000, and three years later
you’re selling them a brand new X5,
it’s very satisfying to know that you
got them in at that ground level and
you’ve communicated with them.
“We’ve got a very good CRM
system so we get them along to
events or to golf and we nurture
them, and they stick with us which is
very encouraging.”
Jerry Clayton BMW
Hilson started
working part time
at Jerry Clayton
BMW in 2004 on
weekends as a
finance manager,
while completing a
university degree.
He was offered a
role as full time F&I
manager when he
finished his degree,
and ended up
becoming general sales manager.
He left at the beginning of
2008 to go to the UK, and spent
nearly three years as general sales
manager of a big dealership just out
of London in Gilford.
The UK dealership was more
high intensity says Hilson, with a
large team of sales people and F&I
managers, supported by a very high
level of enquiry.
But one immediate difference was
that sales people had little experience
of prospecting, and in the economic
conditions of 2008 salespeople had
to be trained to create opportunities.
“There’s not the appreciation of
customer service in the UK that there
is in New Zealand. I think we’re quite
sophisticated in our customer service
systems and processes.”
Hilson says was intending on
staying in the UK several more years,
PROTECTA Na+onwide F & I results -‐ September2011 80% 70% Best Result Worst Result 60% 50% 42% 40% 30% 20% but was approached by Sime Darby
to apply for the dealer principal role.
He says on reflection moving back
to Auckland was the right decision
to make, with consideration given
both to the position, and a threemonth old baby.
However Hilsen says it’s
discouraging that everything in the
premium market is price driven,
whereas in the UK there is legislation
that disincentivises high CO2emitting, high capacity engines.
“The efficiency of the cars and the
CO2 ratings was quite a critical aspect
in the decision process for car buyers,
you save a lot of money by having a
car that is efficient.
“And because BMW really lead
the charge with that, we actually
sold product more on the virtues
of the product rather than the price
proposition.
“I don’t think New
Zealanders place the
same importance on
the environmental
aspects of a car as they
do overseas, but part of
that is because we aren’t
incentivised to drive
lower CO2 emitting cars.”
RUC is one obvious
example says Hilson.
Speaking about the
DP role, he says he has
a leading hand in the business –
“My office door is always open.”
Building a successful business
requires a company culture where
people are happy, want to come to
work, and are informed.
“I have a communications
evening with my staff every quarter,
where my staff know exactly how we
performed the previous quarter, and
they know what our objectives are for
the coming quarter.
“They know what the department
targets are. When it comes to
numbers my philosophy is that I’ll be
totally transparent with the staff.
“If you’ve got transparency it
creates cohesion in the team, and
encourages them to strive towards
that objective.”
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disputes
Dealer claims age not important,
but model shape
Background
On 26 November 2009 Terence
Sugrue bought a Honda Civic from
Washdyke Autos Limited. Sugrue
alleged he was misled about the
car because he was told it was a
2008 or 2009 model when in fact
it was manufactured in 2004, and
wanted compensation or a refund.
The trader’s position was that
his understanding at the time of
sale was that the car was a 2008
model (ie manufactured in 2008)
but registered in 2009. The trader
said that Sugrue got a very good
price for the car and consequently
there is no basis for compensation.
The case
Sugrue purchased the car from
the trader on 26 November
2009 for $15,495. He became
interested in the car because
it was a 2009 vehicle and he
thought that the advertised price
($16,995) was reasonable. The car
had low mileage – the odometer
reading at the time of sale was
24,077 kilometres.
Sugrue said that the director,
Pierre Guinan told him that
the car was a 2009 vehicle, like
new and a good buy. The other
director, Mark Guinan, later told
him that the car was not the
2009 shape but was probably
manufactured in 2008 and not
registered until 2009. It was on
the basis of these discussions that
he decided to buy the car.
But in August 2010 a mechanic
who inspected the car for a WOF told
Sugrue that in his view the car was
more than a year old and advised
him to check the age of the car.
Evidence from South Canterbury
Honda, and produced at the hearing
by Sugrue, showed that the car was
law bd
. 14 | www.autofile.co.nz
manufactured in 2004, obtained by
accessing the Honda records of the
chassis number.
Sugrue said that he would not
have purchased the car had he
known that it was a 2004 model,
and was only interested in the car
because it was virtually new.
Pierre Guinan appeared for
the trader. His evidence was that
there had been no intention to
mislead. He agreed with Sugrue’s
evidence that he had been told
the car was manufactured in 2008
and registered in 2009. Guinan
said that he knew the car was not
a 2009 model because there had
been a change of shape in the
2009 model.
The Japanese export
certificate records the “First Reg
date” as May 2009. There is no
record on the certificate of the
year of manufacture, and the
vehicle year was recorded on the
CIN as 2009. Guinan admitted
that they did not make any
enquiries about when the car was
manufactured.
Once Sugrue discovered the
car was in fact manufactured in
2004, he approached the trader
and asked for a refund. The trader
was not prepared to do that, and
compensation was also discussed
but the parties could not reach
any agreement.
He told the tribunal he paid
at least $5,000 more for the car
than it was worth at the time of
purchase, which he based on
Trade Me sales, copies of which
he provided for the tribunal.
The trader submitted that the
car was a good car sold for a fair
price, and that effectively Sugrue
paid a 2004 price for the car when
he purchased it.
When asked why he had
sold the vehicle for a 2004
vehicle price, Guinan said that
he had given Sugrue a good
price because he knew him
and was doing him a favour.
He also said that he knew
that the new shape came out in
2009, and his approach was to
sell any vehicle between 2004
and 2008 for a similar price. He
said that the important factor
was the shape of the vehicle
and that the trader would offer
vehicles of the same shape for
sale at a similar price even if
the manufacturing year of the
vehicle varied, although a higher
odometer reading would have an
impact on the price.
The Case:
The purchaser bought a Honda Civic
with an ’09 Japan registration, and
was told it was manufactured in ’08,
but he discovered it was ‘04.
The Decision:
The tribunal ruled that the dealer’s
practise was misleading, and voided
the purchase agreement.
At:
the Motor Vehicle Disputes
Tribunal, Timaru
never in place). In alternative he
sought compensation.
In this case the tribunal
exercised the discretion available
to it and declared the vehicle offer
and sale agreement void ab initio.
The effect of that order will be that
the car is returned to the trader
and Mr Sugrue be refunded the
purchase price.
Bruce Dell’s comment
The purchaser alleged he was
misled and told that the car
The tribunal found that the
was either a 2008 or 2009
trader’s advice – that the car
model, whereas in fact it was
was manufactured in 2008 and
seemingly manufactured in
registered in 2009 – was clearly
2004. The purchaser sought a
conduct capable of misleading,
return of the car for a full refund
under the Fair Trading Act.
or compensative difference in
The tribunal accepted Sugrue’s
value. The dealer argued that
evidence that the year of the car’s
at the time of sale the car was a
manufacture was pivotal in his
2008 model, registered in 2009
decision to purchase the car, and
but suggested that because the
his actions once he discovered
pruchaser had obtained a very
the true manufacturing date were
good price for the car there was
consistent with this. The fact that
no basis for compensation…
he may have thought he was
rather interesting argument.
getting a good deal in terms of
The tribunal considered the
price did not change that.
Fair Trading Act as to whether the
The tribunal also noted that
purchaser was misled. The trader
it did not find the trader to be
was not found to be a compelling
a compelling witness, and his
witness. This may not have helped.
evidence about the value of the car
The purchaser still had to
was not consistent.
suffer or be likely to suffer loss or
The remedies available for a
damage as a result of misleading
Bruce Dell Law – “problem solver”
breach of the Fair Trading Act are
conduct. Not surprisingly an order
discretionary.
Sugrue
sought
an
was made
for of
thethe
agreement
to advising o
autofile are delighted to have Bruce
as part
Autofile team
order declaring
the VOSA
be declared
voidVehicle
ab initio
and fullTribunal ca
on the lessons
tovoid
be learned from
past Motor
Disputes
you
require
legal advice
Brucerefunded.
a call on 09 570 5036
ab initioIf(as
if the
agreement
was give price
The finding
Bruce Dell Law – “problem solver”
Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has
handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North
autofile are delighted to have Bruce as part of the Autofile team advising our readers on past Motor
Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036
disputes
Colin Giltrap’s ‘special car’
mystifies purchaser
Background
On 25 June 2006 Mr Freeman
bought a 1998 Mercedes Benz
vehicle for $55,000 from Coutts
Cars Limited, now trading as Old
CC Limited (“the trader”). The
purchaser claims that the trader
misrepresented the vehicle as a
“CLK 43 AMG” model whereas the
purchaser says that there is no
such Mercedes vehicle and that
what he was sold was a CLK 320
model with a V8 engine.
On that basis he says he
was mislead by the trader at
the time of sale and that he
believes he has suffered loss as a
consequence.
The trader denies that the
vehicle is not what it is described
as. It says that the vehicle is
one of a very limited number of
vehicles built-up by Mercedes
and AMG, but cannot explain
why Mercedes and AMG are
unable to provide a record of the
manufacture of the vehicle.
The case
On 25 June 2006 the
purchaser bought the vehicle
from the trader for $55,000. It
was described on the VOSA as a
CLK 43 AMG model. The vehicle’s
odometer was 61,472 miles.
The purchaser says that when
he traded it in to Letz Motor Co
Limited in August 2010, Letz
informed him that there is no
such model as a CLK 43 AMG,
but that they could not sell the
vehicle as a CLK 320 because it
has a V8 engine (the CLK 320 has
a V6 engine).
An email from Richard Schraven
of Coutts Cars sent to Letz was
produced as evidence. It states:
“The chassis number and data card
below have the vehicle as a CLK320
with M112 V6 engine. There is no
such thing as a CLK 430 AMG.”
An email was also produced
from Emily Woods, Product and
Sales Specialist at MercedesBenz New Zealand Ltd which
states: “AMG have checked their
systems and are unable to find
records of this specific vehicle.
This would suggest that it’s not
a factory AMG modified car. I
was unable to find any record of
modifications that were made to
the vehicle.”
The photographs of the
vehicle produced by the
purchaser at the Tribunal’s
request show that the vehicle is
badged as a CLK 43 AMG.
The purchaser’s witness, Mr
Ferandoes of Letz gave evidence
that he has a particular interest
in collecting old Mercedes cars.
He says there is a bias against non
genuine model cars because their
pedigree is unknown.
In reply to the Tribunal’s
Assessor’s questions he saud that
there are no signs the engine has
been transplanted, and that the
engine bay is tidy.
The trader, represented by
M J Giltrap, said that in 1998
his father, Colin Giltrap, was the
Chairman of Daimler Chrysler
New Zealand, and had the
opportunity to purchase the
vehicle, which he says was a
special vehicle.
Giltrap says that in 1998
Mercedes and AMG mass
produced the C43 AMG, a high
performance 4.3 litre V8 sedan.
They did not mass produce the
coupe version; the CLK 43 AMG
was only built on special request.
Giltrap said that he personally
The Case:
Four years after buying a CLK 43
AMG, the purchaser was told when
he traded the vehicle that there was
no such model, but that it was a
modified CLK 320.
picked up the vehicle from
the AMG factory in Stuttgart,
Germany on behalf of his father
and took it to the UK.
The vehicle’s features such as
the Bose sound system, climate
controlled air conditioning, an
AMG steering wheel, bumper
and side skirts and AMG hubcaps
show it was an AMG built vehicle,
but Giltrap was unable to explain
why AMG are apparently unable
now to produce any record of
having built the vehicle.
The Finding
The tribunal considered that
the onus of proving that the
vehicle is not a CLK 43 AMG was
on the purchaser.
Although the documents
produced by the purchaser, in
particular the two emails and the
data card raised some doubt in
the Adjudicator’s mind that the
vehicle might have been a CLK
320 with a V8 4.3 litre engine
subsequently fitted to it, the
Tribunal came to the conclusion
that it was not satisfied on a
balance of probabilities that the
vehicle is other than what it is
described as; a CLK 43 AMG.
There are three reasons why
the Tribunal has come to that
view; first, because it accepts the
evidence of Giltrap that the vehicle
was a special limited production
vehicle supplied to his father
which he personally collected
newly built, from the AMG factory
in Stuttgart Germany and that
it had a 4.3 litre V8 engine fitted
to the vehicle at that time. This
explains why Mercedes have no
knowledge of the vehicle. Second,
that the vehicle has the fittings and
enhancements which a reasonable
The Decision:
The trader disputed this, but could
not explain why there was no record
of the car. The tribunal believed that
the vehicle was indeed a CLK 43 AMG.
At:
the Motor Vehicle Disputes
Tribunal, Auckland
purchaser would expect an AMG
built vehicle to have.
Third, the evidence of
Ferandoes’ was that the engine
bay was tidy indicating to the
Tribunal’s Assessor (on whose
technical expertise the Tribunal
relies) that it was unlikely that
the V8 4.3 litre engine had been
subsequently fitted to the vehicle
but was a factory install.
The purchaser’s application for
damages was dismissed.
Bruce Dell’s comment
Claim by purchaser that dealer
misrepresented vehicle as CLK
43 AMG and that there is no such
model, but what in face was sold
was a CLK320 with a V8 motor.
The dealer denied liability based
on arguments about Mercedes
production.
The purchaser for a very long
time believe he had the car as
originally intended. Various
history of the vehicle was availed
and argued by both parties.
The tribunal had to consider
whether the vehicle was in fact a
CLK43 AMG and considered the
Consumer Guarantees Act and/or
Fair Trading Act. They considered
whether there had been
misleading and deceptive conduct.
Interestingly as the onus of
proof was on the purchaser the
dealer succeeded and the case
was dismissed based on the
balanced of probabilities.
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The voice of the auto industry
industry statistics
Around
Biggest Increases/Decreases by town year-on-year
(August ’11)
the
Biggest Increases
NewUsed
Masterton
 28% Oamaru
 56%
Thames
 21%Westport
 40%
Invercargill
 16%Blenheim
 21%
country
Biggest Decreases
NewUsed
Greymouth
 47%Whangarei
 38%
Westport
 43%Gisborne
 31%
Blenheim
 42%Wanganui
 30%
Car sales - September 2011
Sales of New passenger vehicles versus used import passenger vehicles
Used Vehicle sales - North Island versus South Island (last 12 months)
6000
8000
5020
North Island
5000
Used
7000
4000
6366
3000
6000
5684
2000
1346
5000
1000
New
South Island
Used Imports passenger sales in Auckland, Wellington, Christchurch
500
3176
Aug ‘11
SepT ‘11
Jul ‘11
Jun ‘11
May ‘11
100
Palmerston Nth
116
180
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Aug ‘11
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Jun ‘11
May ‘11
APR ‘11
Mar ‘11
0
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APR ‘11
Mar ‘11
Feb ‘11
235
Feb ‘11
Aug ‘11
Jul ‘11
Jun ‘11
May ‘11
APR ‘11
Mar ‘11
Jan '11
DEC ‘10
NOV ‘10
OCT ‘10
SepT ‘10
Feb ‘11
Wellington
0
SepT ‘11
532
Dunedin
Jan '11
500
200
DEC ‘10
851
300
NOV ‘10
Christchurch
397
Tauranga
OCT ‘10
2000
1000
400
Vehicles sold
2500
Hamilton
SepT ‘10
3000
1500
Jan '11
DEC ‘10
600
Auckland
3500
Vehicles sold
NOV ‘10
Used Import passenger sales in Hamilton, Tauranga, Dunedin, Palmerston North
4500
4000
OCT ‘10
SepT ‘10
SepT ‘11
Aug ‘11
Jul ‘11
Jun ‘11
May ‘11
APR ‘11
Mar ‘11
Feb ‘11
Jan '11
DEC ‘10
NOV ‘10
OCT ‘10
SepT ‘10
4000
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SHIPPING SERVICES
To NEW ZEAlAND AND AUSTRAliA fRoM JAPAN, CHiNA AND KoREA
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industry from Japan to New Zealand in 1987 and
in 1989 introduced the first dedicated car carrier.
Today Armacup continue to offer an excellent cost
effective service to New Zealand car dealers with
benefits such as:
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15 Oct
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1 Nov
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28 Oct
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29 Oct
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Osaka
15 Nov
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17 Nov
Yokohama 19 Nov
Auckland
1 Dec
Wellington 3 Dec
Lyttelton
4 Dec
PIONEERS AND INNOVATORS TO THE
USED VEHICLE IMPORT MARKET
new, used & secondhand
Used importers look to Audi Q7s
on the vehicle, but realistically,
to have a vehicle and make it a
viable proposition to bring in, it
has to be priced accordingly.”
He believes that the margin
on a diesel SUV out of the UK
isn’t significantly different to a
cheaper Japanese import such
as a Toyota Vitz, but says that the
main point of difference is that
there are less of them.
This is also a direct follow on from
the emission rules, where secondhand SUVs enjoy strong prices.
“An ’08 Prado is the same
money as a Q7.”
Pearce doesn’t believe every
man and his dog will soon be
stocking Q7s, in part because of
difficulties sourcing the vehicles.
“You can’t just go out and buy
ten. And you’ve still got to have
the people with the money to
buy them.
“There’s not a lot of dealers
that are actually dealing in that
price range. It’s pretty hard to
flood a market when dealers are
only ever going to stock one or
two, and there’s probably only a
dozen dealers in the whole of New
Zealand who would stock them.
“It is a niche market, and
you’re not going to get the
guys who have been doing the
cheaper Japanese stuff suddenly
jumping up and having a $65,000
European on their yard.”
Terry Elmsly, Dealer Principal
at Euro City in Hawke’s Bay, which
sells Audi, Skoda and Volkswagen,
and was Audi Dealer of the Year in
2010, says they’re very conscious
of the extra competition, but says
to date that retail prices haven’t
altered considerably.
“Pricing has moved a little, but
it’s not a dramatic shift.”
“What we are noticing is a
number of sellers with listings of
2010 Q7s which appear to be in
fact ’08 body shells. Obviously
with the UK market being large if
you’re not aware of what you’re
importing you could potentially
be buying an older model with a
later registration date.”
Later registration dates in the
UK could be the result of vehicles
that took some time to sell during
the recession, particularly in the
case of luxury vehicles.
“What looks cheap on the
surface is not always cheap. Good
quality New Zealand four-wheel
drive product is still very desirable.”
Elmsly believes that there
could also be other issues with
used product from the UK.
“The specifications levels on a
MMI system that controls the Sat
Nav, telephone function and so
forth. In some earlier models, for
example, the MMI systems we had
here differed to what they had in
the UK. The costs of altering or
repairing those components can
be high.”
Buyers in the higher price
brackets, as a generalisation, tend
to be more conscious of doing
their research he says. He believes
ensuring they have support of
Zealand counterpart.”
Ray Meharg, National Sales
Manager at Protecta Insurance,
says they’ve encountered no
issues with UK vehicles.
“We believe they’re far better
than the Singaporean imports. At
this stage we’ve had a few on our
books we haven’t had any issues.”
“Certainly ones that come
in from Singapore always have
electronic problems because of
the condensation.”
Model year versus
year of manufacture
European car, vary considerably.
If you have a large population like
the UK, naturally you can offer a
greater array of optional extras. If
you buy a UK import and you’re
not careful you could end up
buying yourself an orphan.”
“In addition if something goes
wrong there’s only a very small
dealer network that’s able to
actively repair the majority of the
vehicle’s equipment.
“If there’s not a significant
price difference between a NZnew vehicle and an imported
one, I feel the general population
would prefer to have something
that’s NZ-new, particularly when
you’re spending $80 - 100,000.”
Elmsly believes that buyers
could potentially find themselves
with equipment not seen here
on NZ cars and that’s is unable to
be supported with the necessary
software to enable repair.
“Q7s as an example have an
the dealer that is able to repair
the goods if something does
go wrong is something that will
appeal to this demographic.
Elmsly doesn’t believe that
the pricing advantage is strong
enough to cause the UK market
to take off in large volumes
comparable to Japan, not in the
immediate future in any case.
It would only be significant
pricing advantages between a
New Zealand-new vehicle and an
imported UK unit that would spur
a continuous flood he says.
“Of the UK imports I’ve seen
quoted, and have looked into,
most I have felt are priced fairly
comparable to that of a New
Zealand new unit with the odd
exception. By the time you land
it, add a margin and a warranty,
it wasn’t going to offer any major
competitive advantage making
it attractive enough to consider
stocking over that of its New
Dealers list vehicles by year of
registration anywhere in the
world. Malcolm Yorston of the
IMVIA says that if dealers know
that the vehicle is older, eg
manufactured in ’07 and sold in
2009 and they do not disclose it,
they the tribunal is highly likely
to say that it was misleading
behaviour (see this week’s
disputes).
“I advise all our members to
put down both, the fact that it was
first registered in X, but it is a Y
model year vehicle.
“If they put that on the CIN
card or adverts then it’s clearly
there for the purchaser to see, and
there shouldn’t be a come-back
on them.
“If it’s in writing on the CIN
card and the purchaser signs it, it’s
quite clear.”
However simply disclosing
it in person so a customer isn’t
sufficient; if there is nothing noted
down, in the mind of the disputes
tribunal then it didn’t happen.
Vehicle year
[from the back of CIN]
For motor vehicles registered
before 1 January 2007, “vehicle
year” means the year of
manufacture or the model year or
the year of first registration. For
motor vehicles registered after
1 January 2007, “vehicle year”
means the year of first registration
anywhere in the world.
Secondhand car sales - September 2011
Dealer-To-Public
Public-To-Public
Public-To-Dealer
Sept ‘11
Sept ‘10
+/-
MARKET SHARE
Sept ‘11
Sept ‘10
+/-
Sept ‘11
Sept ‘10
+/-
488
504
-3.2
23.3%
1607
1608
-0.1
282
244
15.6
Whangarei
Auckland
4914
5113
-3.9
27.2%
13123
13142
-0.1
4056
3785
7.2
Hamilton
1267
1381
-8.3
30.3%
2917
2983
-2.2
1065
1066
-0.1
Thames
200
186
7.5
31.3%
438
421
4.0
91
96
-5.2
Tauranga
734
867
-15.3
27.7%
1916
1940
-1.2
524
541
-3.1
Rotorua
252
244
3.3
28.1%
644
625
3.0
136
144
-5.6
Gisborne
153
183
-16.4
28.2%
390
366
6.6
100
129
-22.5
Napier
459
439
4.6
25.7%
1330
1309
1.6
379
291
30.2
New Plymouth
388
453
-14.3
26.7%
1063
950
11.9
256
258
-0.8
Wanganui
158
142
11.3
27.9%
408
431
-5.3
127
115
10.4
Palmerston North
741
705
5.1
31.4%
1622
1521
6.6
535
584
-8.4
Masterton
174
163
6.7
32.0%
370
330
12.1
116
98
18.4
Wellington
1282
1298
-1.2
31.1%
2842
2959
-4.0
960
983
-2.3
252
296
-14.9
23.2%
836
849
-1.5
186
214
-13.1
Blenheim
136
173
-21.4
27.0%
368
357
3.1
114
112
1.8
Greymouth
105
98
7.1
36.1%
186
194
-4.1
63
58
8.6
Nelson
Westport
Christchurch
Timaru
24
18
33.3
17.0%
117
99
18.2
4
2
2076
1749
18.7
30.2%
4802
3866
24.2
1670
1446
15.5
237
196
20.9
32.1%
502
421
19.2
142
130
9.2
Oamaru
61
81
-24.7
25.4%
179
163
9.8
26
14
85.7
Dunedin
604
603
0.2
28.3%
1531
1482
3.3
427
502
-14.9
Invercargil
NZ Total
394
412
-4.4
31.2%
867
837
3.6
324
313
3.5
15099
15304
-1.3
28.4%
38058
36853
3.3
11583
11125
4.1
Used import passenger vehicles arrivals
11000
10000
9000
8000
7000
6000
2010
5000
4000
2011
3000
2000
2009
JAN
FEB
MAR
APR
MAY
JUN
JUL
Aug
Sept
Oct
Nov
Dec
Used Import Passenger Vehicles By Country Of Export
Country of
Export
Australia
Great Britain
Japan
2011
2010
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
YTD
Q1-Q2 total
JUL
AUG
SEP
OCT
NOV
DEC
Total
82
77
82
57
81
123
59
92
106
759
588
107
99
90
89
85
125
1183
101
93
104
78
72
55
78
124
205
910
337
48
76
82
59
91
98
791
3989
5136
6633
10036
6893
6051
5174
7154
8930
59996
44109
7123
6628
6447
6270
8283
Singapore
23
23
16
25
36
31
29
29
23
235
791
61
57
77
68
34
57
1145
Usa
51
61
74
62
59
65
51
89
110
622
235
50
65
72
50
70
66
608
30
297
Other Countries
Total
17
19
34
3
19
36
27
20
17
192
148
46
18
29
13
13
4246
5390
6943
10261
7141
6325
5418
7508
9391
62714
46208
7435
6943
6797
6549
8576
7885 86745
8261 90769
used commercial sales
Emissions rule to boost balance sheets
importers, including the effects of
the tsunami, the weaker Japanese
domestic economy, increased
competition in Japan from other
importing nations, and then finally
the emissions rule.
Lease companies currently
enjoy strong residuals for
commercial vehicles such as utes,
though Pederson says that market
for second hand commercials in
New Zealand has always been
extremely strong, regardless.
“Second-hand utes are really
sought after, especially when you
get it back from a lease company
and its already got a canopy, and
most of them have already got
shelving units in them. The sole
trader – builders, plumbers, etc –
they just lap them up.
“It’s the market for passenger
cars that’s varied in bigger waves.”
Pederson says any effect will be
beneficial for the company, since it
lowers their lease rates.
“We really see this as quite a
positive thing for the next couple
of years.”
But any extra value the vehicles
hold next year will fall to the
customer.
“With us it’s the customer
that gets the benefit, because we
actually return anything over and
above what we sell the vehicle for
back to the customer.
“It’s a real advantage for our
customer base at the moment.”
Pederson also believes that there
may be issues with new car supply
next year, which will further shore
up the value of late model vehicles.
“I don’t think new car supply
will be that much better next year,
because of demand from other
markets.
“A couple of the manufacturers
that I’ve spoken to in the last few
weeks are saying that some of
the US markets are 25 -30,000
units behind, so they’re going to
get their 25,000 cars before New
Zealand’s going to get its 200.”
Rental companies, with their
high turn-over of vehicles, also
stand to gain.
However some vehicles are
bought by the companies on a
fixed arrangement, with a fixed
return price. This is because
rental cars are often returned by
companies en masse in a short
period of the year, and they risk
flooding the market with their
returns and so devaluing the
vehicles themselves. Fixing the
price of some of the vehicles
negates this risk.
However smaller rental outfits
that run their vehicles for longer
and eventually sell through retail
channels might find the extra value
padding out their balance sheets.
A2B Rentals recently acquired
Nationwide Car Rentals. Both
companies had similar fleet sizes,
around 800 cars each, consolidated
into 1500.
Director Brett Kilburn says
they’ve bought in a large number
of vehicles to refresh the fleet, both
brand new and used imports.
The company is structured with
Nationwide, running vehicles aged
0-4 years and up to 100,000km, a
second tier brand Easy Rent, aged
up to 7 years and up to 200,000 km,
and A2B with cheaper vehicles.
“We can get them flowing
through from one to the next, to
the next,” says Kilburn.
Vehicles can also be sold on
his yard, or through auction, He’s
hoping the emissions rule will work
in the company’s favour.
“I think depreciation is going to
be limited. We bought in all these
imports, and I think there’s going
to be a bit of a gap there. In three
years’ time the prices will drop
but not the way they would have,
because you can’t bring in the
older cars.
“We’re not budgeting for it, but
I’m expecting it will be pretty good,
with less depreciation than we’d
normally get.”
The effect won’t be as dramatic
as with the four wheel drives and
the commercials after the last
emission rule says Kilburn, but it
will still be there.
“People that are currently
buying cars for 7-8000 aren’t going
to go buy more expensive cars,
they’re just going to hold on.
“I’m not expecting prices to go
up, but I think the curve will be
more tapered.”
Rental buy up to boost new car numbers
the corporate business is doing
better this year than the leisure
side of the market, perhaps a
reflection that it’s businesses who
are spending, not consumers.
While Avis, Hertz and Budget
focus on the corporate market,
Apex Car Rentals are a large locally
owned outfit that concentrate on
the tourist market.
Tony Quinlivan of Apex says
business is going well, despite
challenges.
They’re coming off the Rugby
World Cup, which he says has
been a good six weeks, though
not as strong as peak season.
“It’s been more along the lines
of what we’d consider a good
shoulder season to be.”
The prospect
for the summer
tourist season is
good for short haul
visitors, domestic
and Australia.
But UK, US
and Europe are
looking very
patchy, and
logically, the
influx of travellers
from Rugby-playing nations
across the World Cup may mean
that there are less of those
nationalities come summer.
Apex have recently branched
out into Australia, a decision
made to diversify following the
earthquakes in Christchurch.
But Quinlivan says that
while local tourism operators in
Canterbury are being hit hard,
the city remains the gateway for
the South Island.
“It was a good ski season, our
expectations were met.”
“We are finding that we’re
still getting the same number of
customers through Christchurch, but
they’re not staying in Christchurch.
“A lot of people are heading
away immediately, and they are still
getting the rental car, just where
they’re going in it is a bit different.”
However with the state that
Christchurch is in, he doesn’t believe
it’s the time yet to try to encourage
visitors to stay in the city.
“We’re still a distance away
from seeing Christchurch recover
in any way whatsoever, the
important thing is to get all these
sagged buildings in the central
city cleared out, and down, get
what’s left of the central city open,
and get some sort of coherent
message from the city council
going forward. Unfortunately I
think ‘coherent message’ and ‘city
council’ is an oxymoron.”
“One of the important
messages is that while
Christchurch might be closed, the
rest of the South Island is well
and truly open for business.”
Prices of used
commercials rocket
post-tsunami
A
n estimated 230,000
automobiles and trucks were
destroyed in the Iwate,
Miyagi and Fukushima prefectures,
the three prefectures worst hit by
the March 11 tsunami, figures which
don’t include mini-cars.
Managing director of Kent
Valley Commercials in Tauranga,
Dave Sutton, says he’s seen a
definite increase in the price of
commercial vehicles since the
disaster.
“Prices in Japan have gone out
of control. Vehicles you used to
be able to buy for a million Yen,
for example, you now have to pay
something like 1.3 million Yen.
“And the recent drop in the
dollar isn’t helping.”
Sutton’s business is a veteran
of past emission rules, but he
doesn’t see the next rule having a
significant impact.
While the majority of used
import commercials brought into
the country are petrol vehicles,
Sutton says he’ll simply stop
bringing in the petrol vehicles,
mostly smaller vans.
“They just keep cashflow
going but you don’t make a lot of
money out of them. There’s stuff
there to buy.”
The business is aided by the
fact that two years after the
diesel emission rule (Euro 4),
compliant vehicles are becoming
more affordable, which are
largely ’06-’07 vehicles.
“When they first did the
diesels two years ago it affected
us really badly, you couldn’t
afford to buy them and make it
work because they were too close
to new vehicle prices.
“It’s still not good, but now
another couple of years down the
track we’re getting back to where
it’s viable to bring them in.”
Sutton says the business survived
in part by stocking up, taking on 130
units as opposed to the 60-70 they
would normally carry.
They’re also fortunate because
his boss lives in Japan, and with
better contacts and people on
the ground it’s easier to buy.
Other businesses in the area
weren’t so lucky.
“What’s helping us is that a lot
of the one man bands have gone.
There used to be three truck dealers
in Tauranga, there’s only us now;
which helps us, because everyone
was trying to undercut everyone
else, and I’m always trying to keep
the value and price up.”
Sutton says they field a lot of
interest from out of town, and he
believes about 70-80% of vehicles
sold are sent out of Tauranga.
Vehicles are sold to everywhere
from Whangarei, to Opitki, to
Timaru.
“But it’s hard work, the heyday
is gone. We used to do 20-25 a
month regularly, but now ten
would be a reasonable month.”
Diesel commercials have been
averaging around 15 a month in
2011, a small volume, but up from
the average of 10 a month across
2010. And the majority of the
diesels being bought in are heavy
commercials, where profits tend
to be higher.
Of the 2229 used import
commercials registered so far
this year, 205 have been petrol
vehicles compliant with next
year’s rule, and 131 have been
diesel vehicles, which will be
unaffected.
Taken as a total, 15.1% of the
commercial vehicles registered
this year would comply after next
year’s emissions rule.
Used Commercial Sales by Make - September 2011
Make
Sept ‘11
Sept ‘10
‘11
+/- % MktSept
Share
2011 Full
Year
2011 Mkt
share
Nissan
114
91
25.3
37.6%
805
36.1%
Toyota
101
48
110.4
33.3%
620
27.8%
Mazda
21
21
0.0
6.9%
215
9.6%
Ford
11
10
10.0
3.6%
73
3.3%
Isuzu
9
13
-30.8
3.0%
147
6.6%
Mitsubishi
9
7
28.6
Hino
7
3.0%
53
2.4%
2.3%
42
1.9%
Chevrolet
6
7
-14.3
2.0%
76
3.4%
Fiat
5
4
25.0
1.7%
18
0.8%
1.3%
17
0.8%
3
33.3
1.3%
19
0.9%
1.3%
15
0.7%
1
200.0
1.0%
22
1.0%
0.3%
21
0.9%
1
0.0
0.3%
5
0.2%
0.3%
11
0.5%
2
-50.0
0.3%
8
0.4%
Gmc
4
Mercedes-Benz
4
Suzuki
4
Dodge
3
Holden
1
Iveco
1
Land Rover
1
Renault
1
Volkswagen
1
2
-50.0
0.3%
12
0.5%
Other
0
5
-100.0
0.0%
51
2.3%
Total
303
215
40.9
100.0%
2230
100.0%
Used Commercial Sales by Model - September 2011
+/- %
Sep ‘11
Mkt
Share
2011
Full
Year
2011
Mkt
share
28
121.4
20.5%
367
16.5%
58
41
41.5
19.1%
354
15.9%
49
41
19.5
16.2%
354
15.9%
Townace
16
4
300.0
5.3%
71
3.2%
Mazda
Bongo
15
17
-11.8
5.0%
161
7.2%
Toyota
Dyna
9
6
50.0
3.0%
44
2.0%
Fiat
Ducato
5
4
25.0
1.7%
17
0.8%
Isuzu
Elf
5
9
-44.4
1.7%
106
4.8%
Mazda
Titan
5
3
66.7
1.7%
52
2.3%
Mitsubishi
Delica
5
3
66.7
1.7%
23
1.0%
Toyota
Liteace
5
3
66.7
1.7%
35
1.6%
Toyota
Regius
5
1.7%
42
1.9%
Ford
F100
4
2
100.0
1.3%
25
1.1%
Nissan
Atlas
4
5
-20.0
1.3%
70
3.1%
Suzuki
Carry
4
3
33.3
1.3%
16
0.7%
Ford
Transit
3
2
50.0
1.0%
17
0.8%
Hino
Ranger
3
1
200.0
Mercedes-Benz
Sprinter
3
Mitsubishi
Canter
3
1
Toyota
Toyoace
3
1
Chevrolet
Silverado
2
Dodge
Ram
2
Ford
Falcon
2
Gmc
100
2
Make
Model
Sept ‘11 Sept ‘10
Toyota
Hiace
62
Nissan
Vanette
Nissan
Caravan
Toyota
1.0%
14
0.6%
1.0%
3
0.1%
200.0
1.0%
18
0.8%
200.0
1.0%
29
1.3%
2
0.0
0.7%
22
1.0%
1
100.0
0.7%
15
0.7%
2
0.0
0.7%
8
0.4%
0.7%
2
0.1%
0.8%
Hino
Dutro
2
0.7%
17
Isuzu
Forward
2
2
0.0
0.7%
16
0.7%
Other
25
34
-26.5
8.3%
331
14.8%
Total
303
215
40.9
100.0%
2229
100.0%
new commercial sales
Utes increasingly multi-purpose
L
aunching Toyota’s new Hilux,
general manager Sales and
Operations, Steve Prangnell
pointed out that sales of the
commercial vehicle has doubled
in urban centres across the past
ten years.
“In the past ten years,
the number of commercials
we’ve sold in the major cities
– Auckland, Wellington and
Christchurch – used to be around
22%; it’s doubled, it’s 44% now.
“And the double cab ratio has
gone up, it’s now 60% of the light
truck market.
“What that says is that the
commercial Hilux SR5 is moving
into an urban situation, where
people use it as a work truck, but
in the weekend they’ll throw the
family into it, and it’s got enough
safety and spec now that it’s
actually becoming a main car.”
It’s obvious driving around
suburbs that a large number of
utes are being used for more
than just work.
Prangnell says that on top of
all the safety and spec there’s
something basic that appeals to
buyers.
“They’re a good looking
thing and kiwis like trucks, it’s as
simple as that.”
He believes the launch of their
facelifted model is likely to bring
on extra sales.
“It definitely brings buyers
into the market. We took 300
orders in the last two and half
weeks of September after we
launched Hilux, and started
to run our new TV commercial
during the Sky
rugby coverage.
“Some customers have been
waiting, but generally when
you have a new model it’s an
opportunity to go out there and
talk to your customers again, so it
stimulates a lot of demand.”
Greg MacDonald of Isuzu
Utes believes that the increased
comfort of utes is a part of
explaining the strong growth in
the commercial market this year.
He says that the new
generation of utes coming out
from Isuzu and other Japanese
brands will have more to offer
buyers.
“It is still a commercial vehicle
but it has a much broader appeal
to families and lifestyle users.
“It’s not just a work truck
any more, it’s able to be used
comfortably for families and there’s
a lot more creature comforts inside
now. They’re a lot better spec’d,
and that’s only getting more so.
They’re more relevant to people’s
lives these days.”
Utes are also sharing in
advances of other areas of the
fleet, becoming safer, more
environmentally friendly and
the fuel consumption is coming
down, says MacDonald, while the
power and the tow rating and
other performance factors are
going up.
However he says it’s important
not to lose perspective of the
vehicle’s primary function.
“There’ll be those that go too
far to one extreme; it still has to
be a commercial vehicle that is a
tool of trade vehicle and can be
put to work during the working
week. It still has to have a good
GVM and GCM and good tow
rating and strong drive train, and
be a good ute.
“Some I think are going a
little bit too much down the
passenger car track, and it will be
interesting to see how they hold
up from a viability point of view.”
Nissan’s John Manley says
that there has been a definite
movement over the past several
years for the ute to take on the
role as a family car.
“It has probably been going
on for three-five years. I hate to
use the word, but it’s almost a
fashion thing.
“Certainly utes because the
specification and the ride quality
and the performance have
become far more car-like, for
want of a better term, they’re a
bit more multi-purpose.”
In some respects the use of
the ute as a multipurpose vehicle
mirrors the popularity of SUVs,
at least in terms of the more
arduous tasks.
“Guys can tow a boat, or can
use it for work, and it’s quite
accessible, you’re not putting the
family into a basic ute. You don’t
get bashed around.”
“In urban areas people don’t
need two cars anymore, they
don’t need a ute for work and a
car for home, they can combine
the two and get by on one
vehicle, they’re quite car like.”
Another factor driving
urban sales in the recent-term
could be an economic focus
on infrastructure growth and
expenditure by larger companies.
The National government has
contributed significant resources
to infrastructure, including
roading and telcos with the fibreroll out.
One fleet manager says
they’ve already noticed a
reasonable increase in sales
to Christchurch, with some
companies already starting to
work down there on the rebuild.
Fibre companies for example
are required to repair significant
damage to their lines.
Prangnell says this activity will
be a factor in recent sales.
“We’re seeing significant
growth from companies like
Chorus and EQC and Hawkins
Construction that are all down
in Christchurch rebuilding,
and in Auckland we’ve got
the Waterview project [New
Zealand’s largest ever roading
project], so infrastructure
companies are contributing to
that growth.”
New Commercial Sales by Make - September 2011
Make
Toyota
Sept ‘11
Sept ‘10
533
418
‘11
+/- % MktSept
Share
27.5
27.4%
New Commercial Sales - 2010-2011
2011 Full
Year
2011 Mkt
share
4570
28.2%
Mitsubishi
215
132
62.9
11.1%
1435
8.9%
Holden
177
102
73.5
9.1%
1097
6.8%
Nissan
168
241
-30.3
8.6%
2013
12.4%
Ford
159
253
-37.2
8.2%
2053
12.7%
Volkswagen
108
38
184.2
5.6%
721
4.5%
Mazda
104
82
26.8
5.3%
760
4.7%
Isuzu
72
46
56.5
3.7%
500
3.1%
Mercedes-Benz
63
55
14.5
3.2%
538
3.3%
Hyundai
57
43
32.6
2.9%
531
3.3%
Great Wall
49
17
188.2
2.5%
277
1.7%
Mitsubishi Fuso
45
40
12.5
2.3%
255
1.6%
Scania
29
18
61.1
1.5%
170
1.1%
Fiat
24
35
-31.4
1.2%
150
0.9%
29
-20.7
Hino
23
Alexander Dennis
17
Kenworth
15
11
36.4
2010 2011 2000 1500 1000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec New Commercial Sales by Model - September 2011
Make
Model
Sept ‘11 Sept ‘10
+/- %
Sept
‘11 Mkt
Share
2011
Full
Year
2011
Mkt
share
1.2%
207
1.3%
0.9%
55
0.3%
Toyota
Hilux
300
261
14.9
15.4%
3129
19.3%
0.8%
104
0.6%
Toyota
Hiace
211
139
51.8
10.9%
1298
8.0%
Holden
Colorado
163
85
91.8
8.4%
943
5.8%
Nissan
Navara
158
219
-27.9
8.1%
1921
11.9%
Mitsubishi
Triton
145
92
57.6
7.5%
990
6.1%
Mazda
Bt-50
104
66
57.6
5.3%
738
4.6%
Ford
Ranger
97
142
-31.7
5.0%
1474
9.1%
Mitsubishi
L300
70
40
75.0
3.6%
444
2.7%
Volkswagen
Amarok
61
3.1%
323
2.0%
Western Star
14
1
1300.0
0.7%
60
0.4%
Other
72
85
-15.3
3.7%
693
4.3%
Total
1944
1646
18.1
100.0%
16189
100.0%
Commercial sales by Region - September 2011
NEW
Whangarei
2500 Used
Sept '11
Sept '10
% DIFF
Sept '11
Sept '10
% DIFF
65
57
14.0%
5
5
0.0%
Auckland
705
638
10.5%
134
102
31.4%
Ford
Transit
56
93
-39.8
2.9%
508
3.1%
Hamilton
169
163
3.7%
17
10
70.0%
Hyundai
H1
56
40
40.0
2.9%
513
3.2%
Thames
17
21
-19.0%
3
Mercedes-Benz
Sprinter
42
44
-4.5
2.2%
432
2.7%
Tauranga
61
63
-3.2%
17
12
41.7%
Rotorua
34
23
47.8%
10
5
100.0%
Great Wall
V240
30
14
114.3
1.5%
248
1.5%
Gisborne
26
14
85.7%
Isuzu
N Series
24
18
33.3
1.2%
136
0.8%
Napier
66
59
11.9%
Fiat
Ducato
23
35
-34.3
1.2%
149
0.9%
6
4
50.0%
New Plymouth
37
46
-19.6%
2
4
-50.0%
Mitsubishi Fuso
Canter
22
24
-8.3
1.1%
127
0.8%
Wanganui
17
15
13.3%
1
2
-50.0%
Toyota
Landcruiser
22
18
22.2
1.1%
143
0.9%
Palmerston North
71
59
20.3%
6
3
100.0%
Volkswagen
T5
20
10
100.0
1.0%
169
1.0%
Masterton
17
8
112.5%
7
1
600.0%
Wellington
165
129
27.9%
26
17
52.9%
Great Wall
V200
19
1.0%
29
0.2%
Nelson
28
28
0.0%
6
2
200.0%
Isuzu
D-Max
19
1.0%
173
1.1%
Blenheim
22
20
10.0%
0.9%
55
0.3%
Greymouth
11
25
-56.0%
Westport
1
1
2
-50.0%
10
Alexander Dennis Enviro 200
17
Isuzu
F Series
16
10
60.0
0.8%
108
0.7%
Mitsubishi Fuso
Fighter
16
9
77.8
0.8%
95
0.6%
Scania
P
16
2
700.0
0.8%
40
0.2%
Volkswagen
Crafter
14
28
-50.0
0.7%
163
1.0%
Volkswagen
Caddy
13
0.7%
65
0.4%
10.8%
1776
11.0%
4
2
100.0%
252
138
82.6%
48
23
108.7%
Timaru
22
19
15.8%
2
6
-66.7%
Oamaru
10
1
900.0%
Dunedin
88
64
37.5%
9
7
28.6%
Invercargill
57
54
5.6%
3
9
-66.7%
Other
210
247
1944
1646
18.1%
303
215
40.9%
Total
1944
1646
Christchurch
Total
90.0
-15.0
18.1 100.0%
16189 100.0%
s
r
e
l
a
e
D
e
Mor anted
W
Isuzu, the world’s largest builder of trucks
and diesel engines and Japan’s oldest auto
maker is seeking more D-Max ute dealers.
The No.1 pickup truck in the worlds largest one ton ute market* the current
model Isuzu D-Max has gathered a loyal following since its launch in NZ in
June 2010. A totally new model D-Max hits NZ shores in 2012 and we are
proud to begin building upon our excellent existing dealer network.
Dealership opportunities exist in the Bay of Plenty, Taranaki and Wellington
regions for those with the experience and means to take a highly regarded
brand and create a profitable and long term business.
Initial expressions of interest may be made in the strictest of confidence to:
Greg MacDonald, General Manager, Isuzu Utes NZ Ltd. greg@isuzuutes.co.nz
www.isuzuutes.co.nz
*(Thailand)

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