Getting on with the Giga
Transcription
Getting on with the Giga
New Zealand’s news source for road transport, logistics & heavy equipment industries Volume 1 | Issue 2 | April 2015 Getting on with the Giga Future of Editor Robert Barry went to Japan as a guest of Isuzu Motors Limited to experience the new VC36 series Giga HD which will be arriving in dealerships soon. D riving a heavy duty truck combination around a 42 degree bank at 80 km/h in the Northern Japanese island of Hokkaido on an Easter Sunday is not normally how I spend a holiday weekend. But this was the unique test of the stability and engineering as well as the power of Isuzu’s new entrant into the New Zealand heavy truck market, the 2015 VC 36 Giga series which will start arriving into dealerships midway through the second quarter. Already the New Zealand distributor Isuzu Trucks has taken more than 40 confirmed orders on a truck which is yet to hit series production, but the increase of the model range from 9 to 18 units, as well as the availability of a 285mm chas- sis rail model, which combined with an air suspension package and a 18-speed Eaton Road Ranger gearbox gives the brand a weapon to re-take lost market share in the stock transportation sector. Getting up close and personal with two versions of the all-new Isuzu Giga, one with a box body fitted and the other a tractor unit at the Wacom test track allowed my self and three other truck media partners to experience the new Euro 5 engines, one a 460Hp and the other a 520Hp unit, both allied to a 16-speed Isuzu automated manual transmission. Climbing up the steps and into the driver’s suspension seat gives a great view of the road ahead, and all of the controls are intuitively understood and vehicle inspections? A s part of his brief to investigate future strategies of the vehicle inspection business, VINZ chief executive officer Gordon Shaw will head to Dubai in April to attend the bi-annual global conference which is being hosted by the International Motor Vehicle Inspection Committee, known as CITA. “Our parent company Jevic is a member of CITA as it is a committee for the harmonisation of policy and standards, and delivery of vehicle inspections,” says Shaw. “The Jevic Group have always been represented at past CITA conContinued on page 4 Continued on page 3 EROAD customers have claimed $5.9m in off-road refunds in the past 12 months Improve your cash flow with EROAD’s automated, accurate off-road claims 0800 4 EROAD | eroad.co.nz foundationsponsors DIESELtalk acknowledges the support of our foundation sponsors and industry supporters: Vehicle Inspection NZ Industrysupporters TRANSPORT’S SPECIALIST INSURANCE PROVIDER 2 | DIESELTALK QUARTERLY REPORT | APRIL 2015 The way to reach the entire heavy vehicle and contractors’ equipment industries Getting on with the Giga Continued from page 1 easily operated. Pulling the stubby gearstick across and down puts the transmission into drive, and by gently accelerating the transmission moves swiftly through the gears as we move off towards the track and the first banked corner. Both the 460Hp and 520Hp engines are strong and smooth performers but what really impressed on first acquaintance was the quick reaction of the AMT transmission on both trucks, and the ride quality from the conventional suspension as well as the air suspension. Admittedly we were on a relatively smooth asphalt surface rather than a state highway, but both Giga models on the Wacom test track provided a comfortable ride in the cab for the passenger who didn’t have the luxury of a suspended driver’s seat. The new Giga is so human friendly to drive, even someone such as myself who hadn’t been at the wheel of a heavy truck for some time, quickly acclimatised. My first lap of the straight course with banked loops at the end was somewhat cautious, we had been instructed not to exceed 100km/h on the straights and no more than 80km/h through the banked curves and to remain in the middle lane. It was great fun, and as I noted to another Kiwi colleague, “even your granny would be comfortable driving that truck.” Isuzu Motors Japan sales division executive Yasukyuki “Jay” Niijima says he sees New Zealand as the gateway to the truck manufacturer's growth in the global heavy duty truck market in the next five years. Niijima-san says the company is in a very healthy financial position and it wants to be a better competitor to the European brands in the heavy duty truck sector. Currently New Zealand is Isuzu Motors fifth largest export market for heavy duty vehicles and general man- ager Colin Muir says there is a clear aim to regain the number 1 spot on the sales chart in New Zealand. “It was disappointing to loose volume and market share in the heavy duty sector, but we think the new VC36 Giga has a good specification and will have wide appeal to the local market,” says Muir. “Moving from 9 models to 18, thanks to the factory adopting a New Zealand orientated specification by doubling the amount of 8x4 models available and adding four more 6x4 models, can only strengthen our offer,” he says. The New Zealand distributor lost a few variants in 2010 due to changes in emissions regulations but now it has, once again, a full suite of models in its sales arsenal. Muir commented to DIESELtalk in Japan that the sales team can now confidently visit a prospective truck buyer by putting the specifications on the table and asking the question: “How does that compare?” He goes on to say that Isuzu will target any application and product that it can with, Giga locally, that the truck is a quantum leap forward with in his opinion, a 100% improvement in spec and durability which will be backed up by the provision of cost effective parts and service. “There is a school of thought in New Zealand that www.DIESELtalk.co.nz EDITOR Robert Barry 022 0180 998 robert@automediagroup.co.nz BUSINESS MANAGER Ian Ferguson 027 530 5194 ian@automediagroup.co.nz OPERATIONS MANAGER Deborah Baxter 027 530 5016 deborah@automediagroup.co.nz MANAGING EDITOR Richard Edwards 021 556 655 richard@automediagroup.co.nz PUBLISHER Vern Whitehead 021 831 153 vern@automediagroup.co.nz DIESELtalk and dieseltalk.co.nz are published by: Auto Media Group Limited PO Box 105010, Auckland Ph 09 309 2444 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 this use. toto which says if you want to make money in the transport industry then you’ve got to buy a Japanese truck.” GIGA HD: FACTS AND FIGURES I suzu Truck general manger Colin Muir says the new VC36 series Giga HD will give the New Zealand distributor a heavy commercial vehicle that will target competitors such as DAF, Scania, and Volvo in market specific applications. Muir says gross vehicle weight (GVM) will be the legal standard al- lowed on the 6x4 and 8x4 applications, and gross combined weight (GCM) will be up to 62,000kg based on the type of truck. He says that Isuzu Trucks will be aiming to win HPMV and 50MAX business as well as non-permitted GCM units. The Euro 5 400 Hp engine retains the Diesel Particulate Diffuser (DPD) emission system which is familiar to Isuzu Truck buyers but the new 460Hp and 520Hp six-cylinder turbo diesel units are now equipped with SCR systems using diesel emission fluid (DEF) to meet the required regulatory standards for emission controls. Continued on page 15 DIESELTALK QUARTERLY REPORT | APRIL 2015 | 3 NEWSTALK FUTURE OF VEHICLE INSPECTIONS? Continued from page 1 ference but this is the first opportunity for VINZ to attend.” Shaw says the main focus of the conference will be centred around enhancing the value of vehicle inspection, and the sub themes around achieving inspection integrity, and where the future of vehicle inspection lies. The continuation of the business model of having multiple 'tin sheds' located around New Zealand is under threat, according to Shaw, because commercial customers are preferring to have an inspection service go to their premises. The ever changing face of vehicle technology is also bound to have an impact on the way inspections are carried out. “What could the vehicle's on board computer systems tell us that we don’t need to physically check? Will there be the opportunity, as an example to learn from plugging into a vehicle about the number of heavy braking incidents, as well as overspeed incidents, which would tell an inspector to look at tyres and brake pads,” he asks. Shaw says the CITA conference will allow VINZ as an inspectorate to interact with other companies and to be able to share knowledge and brain storm ideas. As part of the conference, delegates will be able to visit vehicle inspection organisations in Dubai to see the top of the line technology currently being used in the Middle Eastern city. While in Dubai, Shaw says he will have the opportunity to meet current suppliers such as MAHA and BM to investigate new equipment to make inspections more efficient and thorough. “We are interested in looking at the top of the raised bed load brake roller line machine which could potentially improve our heavy vehicle brake facilities.” “We use the same standard of equipment and calibration across the network which gives us the best possible outcome for our customers, and we are always looking to improve it.” says Shaw. He says as well as looking at local inspectorates in Dubai there will also be a visit to Muscat for a tour of an Omani Police inspection facility which is being hosted by MAHA. Unlike it's local competitors, Shaw says that VINZ will remain focussed on its core vertical market of providing entry certification – as well as COF A and COF B – and and it hopes to grow a higher market share through providing excellent customer service. “We will not take our eye off the ball by diversifying into other services,” he says. “And we will continue to manage our volume of work by tightly managing the labour pool that we have.” Shaw says the lack of qualified and experienced people means VINZ is constantly trying to find the right people at the right time, but the shortage is such, that he makes the suggestion that the inspectorate industry might want to consider banding together to recruit offshore, possibly even hold job expos in Europe. Gordon Shaw “Its a concern that we simply don’t have enough young New Zealanders coming through the system to drive trucks, fix trucks, and work for the regulator - why aren’t we marketing the opportunity to our younger people? Why aren’t there components in the apprenticeship scheme for our part of the industry? There really ought to be, I think an opportunity has been missed here", says Shaw VTNZ sales and marketing manager Melissa Cheals echoes Shaw’s sentiments about the scarcity of qualified people in the industry. “We are finding it difficult to recruit staff in some areas, particularly Christchurch. There is a shortage of heavy vehicle technicians across the country, so VTNZ is retraining WoF inspectors to become CoF inspectors and recruiting from off shore. “VTNZ is using the DEKRA network to identify qualified staff who might like to move to New Zealand,” says Cheals. Shaw says the new COF A and COF B regime has seen VINZ focus even more strongly on customer-focussed outcomes. 4 | DIESELTALK QUARTERLY REPORT | APRIL 2015 “We are only as good as our last contact with the customer and under the new rules the face of training has changed,” he says. “We are the first key service delivery partner for the NZTA putting a batch of inspectors through the new COF B internal process for training; our trainers are now accredited assessors and there’s a lot of preparation work on tablets for people to do before they hit the classroom. “Then once in the class room they spend time with a trainer going through specific parts of the process and then we carry out the practical application and assessment. “We could be accused of overtraining our staff - but our reputation is based on the inspections we undertake,” he says. The increase in new and used heavy commercial vehicles on the road has meant an increase in CoF volumes by 2.5% in the last 12 months. According to Cheals, VTNZ is partnering up with heavy vehicle repairers to provide COF inspections on their sites. “Many repairers like the flexibility of having VTNZ vehicle inspectors provide inspection services on vehicles at their workshops at times that suit them. “This means that repairers do not have to recruit or train technicians to become vehicle inspectors, provide ongoing training, or arrange cover when staff are on leave. “They save costs on the site application process and the costs of setting up to become an inspecting organisation. They also save on costs of travelling to and from the testing stations,” Melissa Cheals she says. “Many fleet operators still like to have an independent inspection on their vehicles to ensure that the process is transparent, is easily audited from a health and safety perspective, and it means that they will not be paying for repairs that are not necessary to get a COF. “VTNZ is providing inspection services to meet their needs, including 'Vehicle Condition Assessments' between COFs,” she says. ON ITS WAY. * THE ALL-NEW 2015 ISUZU GIGA SERIES IS ARRIVING IN SEPTEMBER. WITH 18 NEW MODELS TO SELECT FROM, YOUR NEW GIGA WILL OFFER YOU UNRIVALLED PERFORMANCE AND FEATURES. B&CAL0508 Because we are New Zealand’s largest Isuzu dealer, we have plenty on the way to us. That’s why we can put together the best pre-order deals around. Give us a call today to find out just how much you can expect from the new GIGA with CAL>ISUZU. 0800 266 628 | 0800 447 818 | 0800 677 268 | CALISUZU.CO.NZ Hamilton Tauranga * Truck shown not actual 2015 GIGA. Auckland PEOPLETALK Industry has to do more about the driver shortage O ne of the bigDavid Aitken is the chief executive officer of the National gest issues facRoad Carriers Association Inc (NRC). Founded in 1936 ing the industry as the Auckland Owner Drivers Association by 29 town right now is the driver carriers, today the NRC continues its founding principles shortage, particularly by providing advocacy and commercial services to skilled and experienced its members, from sole traders to large transport Class 5 drivers. companies. Email: david.aitken@natroad.co.nz There are many aspects to solving the problem, but what is very clear from discussions agencies assistance. If you are worried with industry is that industry Industry needs to start about the shortage needs to do more! Industry training more drivers to but are not doing has to take ownership, stop class 5. The main reason anything to train replying on others or blamthey don’t is few have the ing everyone else. If industry ability that allows a strucand give experience doesn’t do its bit, we will not tured career path starting in to new entrants start to solve the issue. the yard or labouring before wanting to get into The main shortage is working their way through experienced Class 5 drivthe industry then the ranks and obtaining ers. In order to become an skills and experience. This you are part of the experienced Class 5 driver, would include a Class 2 problem, not the you need to go through the ‘’runabout’’ vehicle that solution. licence system and gain the allowed drivers to develop necessary skills and experiskills as they worked their to train, buddy up, and give ence needed. This can’t be way to a Class 5 license. new entrants the experience taught in a classroom, rather The good news is we are everyone is looking for. It on the job, i,e. industry needs starting to see operators needs to be incorporated to take drivers on and allow change their model to acinto their business model. them to gain the necessary commodate the runabout skills and experience. for this very purpose. They We hear two main excuses Studies such as the April have stopped relying on why businesses don’t. 2003 report commissioned others and started to do • My business is not set up by the Road Transport something about it. for Class 1, 2-4 drivers. Forum identified a number We know there are youth We can only take expeof reasons contributing to and others wanting to get rienced Class 5 drivers. the driver shortage and by into the industry, having This means more fleets all accounts these haven’t only a Class 1, 2 or 4 licence need to incorporate a changed, i.e. pay, working or even a Class 5 with little runabout into their fleet conditions, compliance pres- experience. Many give up and be prepared to train sures, the licensing system, and change career paths drivers. It’s a hard ask, training and driver retention. after being told they do not but there are fleets that One thing the report failed have the necessary licence can do this and aren’t. to pick up on and we believe or the required experience. • Once trained they go is at the essences of the If no one is willing or able and work for someone problem is that industry has to take them on, give the else! So if you aren’t to take greater ownership of required training and experitraining, where are you the problem and do more. ence, they move on. getting the experienced Industry can no longer rely Training providers can drivers from? Someone on government, ITO’s or train, but only the industry who has. If more comother agencies to solve can give them the experipanies trained drivers up, shortages, rather we need ence. Therefore more comthen it wouldn’t matter. to take ownership with the panies need to be prepared 6 | DIESELTALK QUARTERLY REPORT | APRIL 2015 The next reason is pay rates and conditions. We hear pay rates are too low to attract or retain drivers. Pay is only one element within job satisfaction. Interesting work, the value of work-life balance, employment relationships, other benefits all factor in overall job satisfaction. Companies offering additional benefits usually don’t have a driver shortages. Companies then say they can’t pay more as margins are low. We constantly hear that if we increase rates, a competitor will undercut. But whose fault is this? Rates need to increase and customers need to pay more. What is clear, is that the association and other bodies can keep looking at initiatives to assist, however without industry support these are wasted. If you are worried about the shortage but are not doing anything to train and give experience to new entrants wanting to get into the industry then you are part of the problem, not the solution. In summary, there are many factors identified in various reports as to why there is a shortage, however it is clear industry has to stop relying on others and do more. The industry has to take control and be prepared to take on, train and give the required skill and experience. A start would be for more operators to add Class 2 vehicles to the fleet – and even driver trainers – as part of their operation, if we are to solve the driver shortage issue. PEOPLETALK Awards to recognise transport industry W e think it’s time that the A former MP and minister of the crown, Ken Shirley became innovation the chief executive officer of the Road Transport Forum and professionalism New Zealand (RTFNZ) in 2012. The forum was set up as a that has made the national body in 1997 to responsibly promote and advance road freight industry the interests of the road transport industry, and its member the preferred transport road transport operators. Email: ken.shirley@rtfnz.co.nz choice in New Zealand is honoured. So we have set up a series of awards Regional heats will be to activities which help raise which will recognise the skill held at Auckland, Tauranga, the public standing of the and achievements of industry Palmerston North, Christchindustry. members. urch and Dunedin with The outstanding award The announcement and the winners travelling to for health and safety and presentation of these new Christchurch for the chamfor training target two areas awards at the Road Transport pionship being held at the which have always been Forum annual conference Airforce Museum on August important but which have dinner will undoubtedly be 27. The finalists will have become even more signifione of the most memorable their travel and acmoments of the conference commodation costs being held at the Airforce and conference Museum of New Zealand, Wi- registration paid for. gram Christchurch between Details of the reAugust 27 and 29. gional competitions The first award is a nawill be available on tional New Zealand Truck the Forum’s and its Driving Championship. association websites There’s a common misconshortly. ception that anyone can The second set of drive a truck. Not so. Safely awards is for the inloading a truck so that it is dustry. Ingenuity, fresh think- cant over the past few years. compliant with the numering and professionalism have There’s an increasing focus ous rules and regulations built the road freight industry on health and safety measand weight distribution rewhich now carries most of ures across all industries. quirements then piloting an the country’s goods. It is The new health and safety investment worth as much time for the forward thinking act is one demonstration as half a million dollars up by individuals, organisations that expectations are being the road is in fact a deor companies which has raised. The sometimes six manding occupation. That always typified the industry figure penalties for health needs to be recognised. to be celebrated. and safety breaches are Entrants will compete The supreme contribuanother. in four categories: Class 2 tion to New Zealand road So it’s really fitting to have Rigid, Class 3 and 4 Rigid, transport will be awarded to an award which acknowlClass 5 truck and trailer the person, organisation or edges the good work already combination and Class 5 company deemed to have being done within the indussemi-trailer. The winners of made the most memorable try in this area. the four categories will be contribution to the industry Similarly the training eligible for the New Zealand over the past year. We’ve award addresses a long young truck driver of the deliberately drawn up wide standing issue for the road year award, if 25 or under, ranging criteria which cover freight industry: the driver and the overall New Zeaevery aspect of the industry shortage. It’s a problem land truck driver of the year from new vehicle designs which has been compoundaward. and mechanical innovation ed by successive govern- ments’ tertiary training policy where for too long there’s been an excessive focus on academic qualifications rather than the training needs of skill-based vocations like the road freight industry. With the chronic driver shortage and an ageing workforce, it is clear that the industry needs to invest more in recruiting and training younger drivers. So that’s why we think it is vital that we reward those who are putting the effort into driver training or have developed new driver training schemes on their own or in partnership with other parties. The last of the new awards is the New Zealand road transport hero which, as the name suggests, will honour a professional heavy vehicle driver who saves or attempts to save another person or persons from harm while performing his or her duties as a driver. We’ve definitely struck a chord with this award. We’ve had a number of messages congratulating the Forum on setting it up and saying it’s about time the often heroic actions of truck drivers were recognised again. Others have noted the actions of the driver whose vehicle caught fire while travelling through Paremata, north of Wellington. At obvious risk to himself he continued driving some distance until he could safely pull over because he was concerned about the threat to nearby houses. DIESELTALK QUARTERLY REPORT | APRIL 2015 | 7 PEOPLETALK The heavier Dragons are coming to Gods-own Y ou might wonder about the title, see more of these on the roads here but I am referring to more heavy especially in the line-haul application. commercial vehicles being imHow long before we see other Chinese ported from the new power-house in heavy trucks such as the FAW, DFM, truck and bus manufacturing, being the C&C Trucks, Beiben Truck and others is Peoples Republic of China! Malcolm Yorston is the member and technical We are all aware services manager for the Imported Motor Vehicle of the increasing Industry Association (IMVIA). IMVIA provides number of light advice and support to a wide group involved in the Chinese commercial importation of used motor vehicles into New Zealand, vehicles such as the including wholesalers, dealers, shipping companies, Great Wall, Foton, compliance shops and vehicle exporters in Japan, Chery, Geely, as well Singapore and the UK. Email: technical@imvia.co.nz as the new MG range of passenger vehicles entering service in the national fleet. the interesting question that is begging I have also seen a Jinbei (Toyota to be asked. Hiace look-alike) that has been trialled I have seen many of these heavy in Auckland, and it is likely to be a hit vehicles at both the Beijing and Shangwith couriers and freight companies hai Motor Shows, and I have also been because of its price advantage. lucky enough to visit a number of There are other Hiace look-a-likes being produced in China, for example, the Joylong is one such vehicle that we may see imported into NZ at some time in the future. In the heavy industry we have seen fewer marques appearing on our roads, but we have had a number of vehicles entering the fleet over the last few years. It is my opinion, that we going to see a lot more of the heavier vehicles from China entering the fleet in the near future. We have already seen a number of buses such as the Sunlong, Higer, manufacturing facilities in China. BCI and JAC working in the tourist inSome of the heavy commercial dustry, and we have also seen a recent manufacturers in China impressed me entrant to the market, known as Yutong, with their level of commitment to quality supply buses into the New Zealand assurance, and R&D, while others were fleet. How much longer will it be before less impressive. we see the Foton and Yantai-Shuchi Some of the Chinese bus manufacbuses (plus others) as well? turers are using hoop-frame conWith trucks we have seen JAC and struction methods, whilst others are Foton represented in the local market persevering with pin-frame construcplace for a short time and we are now tion which is not conducive for good starting to see SINO trucks entering roll-over performance. the fleet as well. I recently spent some time in the These SINO trucks are very much Yutong bus factory in Zhengzhou where a Chinese-made Volvo and are a well I saw the manufacturing process and specified vehicle, and I expect to their R&D facility. 8 | DIESELTALK QUARTERLY REPORT | APRIL 2015 This particular R&D facility was one that I would consider to be world class, and it was being used for random testing of parts that had been supplied by component manufacturers, such as headlamp units being tested in a humidity cabinet to UN-ECE requirements, as well as other supplied components that appeared to being tested to destruction. A fully laden 'city bus' was being tested on a test bed for the equivalent of more than 1,000,000km of travelling over corrugated and potholed roads. The Yutong rustproofing process involved complete immersion in a 7-stage treatment facility built by the German company Dhür, using Henkel rustproofing products. Along with many other Chinese manufacturers, Yutong Bus uses components supplied by recognised global suppliers such as Robert Bosch for computers and electronic systems, Cummins, and DAF for engines, and GM-Allison for automatic transmissions. It is reassuring when you see the international components and systems such as these being used by a multitude of Chinese vehicle manufacturers, because you can have confidence that there is local expertise available here in Gods-own to be able to service, diagnose faults, and carry out repair without having to go through more product-specific brand training. In this article I have only glossed over what is currently available, and what may possibly become available here in the future. Will we see Chinese-manufactured heavy motor vehicles become more main-stream and more of the normal in NZ? I believe we most certainly will, and in the not too distant future. PEOPLETALK Investing in the future of Freight T he NZ Transport Agency is currently working with the transport sector to develop the 2015-18 National Land Transport Programme. The first step in this process is working with the regional transport committees; I personally sat in on submissions from the freight sector to the Waikato Regional Transport Committee and was impressed at the wider economic and safety concerns expressed. The completed regional plans form the basis of the agency is programme to invest around $12 billion from the National Land Transport Fund in maintaining, renewing and improving our land transport system. The next three-year investment programme will be the culmination of much of the Transport Agency’s work over the last few years to identify where the best investments are for the limited amount of money we have. While the money available is significant, we are also conscious that these funds have been raised from road users - through fuel excise on petrol vehicles, motor vehicle registrations and road user charges. A significant amount of money also comes from ratepayers for activities co-invested through the programme like local roads and public transport. The programme will seek to get the best value for money for New Zealand through these investments in our transport system. This will include making sure we invest in the network in a way that reflects its use and contribution to the New Zealand’s economy and social wellbeing. The need is of improve freight safety and efficiency has a considerable role shaping our investment choices. Part of the thinking behind our investment approach has been influenced by the work we have had underway in our freight planning with local government and industry. These discussions together with our analysis identify both specific investment options, as well as key priority areas – such as growing 50MAX network access and developing Harry Wilson is the freight portfolio director for the New Zealand Transport Agency, a role which helps ensure that freight initiatives are as integrated and coordinated as they can be. He joined NZTA as the Waikato regional director in October 2008. Email: harry.wilson@nzta.govt.nz the 58-tonne High Productivity Freight Network where it is economic to do so. We know from our work that the more efficient New Zealand’s freight system is, the more this reduces the cost of moving goods – which makes our economy more competitive. Improving the competitiveness of the economy will grow our country’s wealth, create jobs and lift our standard of living. This is why growing the value of New Zealand’s export trade is an important Government policy objective. As such there is likely be a continued focus on investment in our strategic freight network to improve access to international and domestic markets. This will mean better connecting our regions, improving access to major ports and moving freight across our major cities will be significant considerations. The freight task is substantial and we know it is also growing, by around 50-60% over the next thirty years, and in some places, like Auckland, by between 60-70%. Population growth and increasing car travel in some areas will also put pressure on some of the network. This may require investment in the road network and also in alternative transport choices to manage demand. Along with providing efficient journeys, our industry engagement also emphasises the increasing importance of improving journey predictability on key freight routes. Being able to predict journey time and knowing how many trips you can make in a day are important concerns for those moving freight. To ensure a more level playing field for industry and to protect our road network from damage, we will also be looking at investing in more automated weigh devices. These devices, which are part of our Weigh Right initiative, will be used to help identify those vehicles operating illegally over weight and also those not paying the correct road user charge for that vehicle type. One of our objectives for this work is to allow for more high productivity access on the network through reduced illegal overloading of trucks, which are less safe and can damage roads and bridges. Another objective is to be able to better identify those vehicles operat- We also know that freight movements should be safe and we need to invest in some parts of the network to address known areas of high risk. ing at the correct load limits, in order to allow them to continue on their journey while more attention is given to those who may warrant it. We also know that freight movements should be safe and we need to invest in some parts of the network to address known areas of high risk. This is something that is really important to me in as regional director for the Waikato and Bay of Plenty. While I recognise the importance of moving freight for the wellbeing of our country, I do not believe death and serious injury are legitimate costs of moving freight. Given the high volumes and economic value of freight moving through the Waikato, together with our proximity to New Zealand’s largest ports – we need our most important highways and rail networks to move this freight as efficiently and safely as possible. So as you can see this programme is likely to have a lot in it. More specific detail will become available over the next few months – as those who pay into the national fund, I am sure you will appreciate knowing how this money is being spent. DIESELTALK QUARTERLY REPORT | APRIL 2015 | 9 PEOPLETALK Industry training apprenticeships stack up T he Industry Training Federation says it has welcomed a report from the Ministry of Education, which highlights the effectiveness of industry training apprenticeships over apprenticeships offered through Polytechnics or Institutes of Technology. The Education Ministry study http://www.educationcounts.govt.nz/publications/80898/what-is-amanaged-apprenticeship was released last month, and shows that industry training apprenticeships result in higher completion rates and longer-term employment prospects. “Industry training apprenticeships take place on the job. They benefit both workers and employers,” says acting ITF chief execu- Kevin Bryant is the acting chief executive for the membership-based Industry Training Federation. It represents industry training organisations (ITOs) to government, and it works with agencies and sector groups to improve the policy for, and delivery of industry skill development and workplace learning. Email: kevin@itf.org.nz tive Kevin Bryant. “Integrating study with practical skills and workplace knowledge is a winning formula. “A massive bonus is that industry training graduates complete their qualification free of a student loan,” says Bryant. “Importantly, industry trainees and apprentices can earn while they learn. So they gain work experience, competence, and national qualifications without getting into student debt. “The study also shows that industry training ap- prentices are much more likely to stay and work in New Zealand, boosting our economy with qualified workers.” Bryant says every year around 140,000 people are gaining national qualifications through industry training and these numbers are growing. Apprenticeships provided through polytechnics and institutes of technology are relatively small, with the study limited to three fields of study, including automotive engineering. “Progress is rapid in in- dustry training, and there has been a great deal of positive change in recent years,” he says. “The report highlights the cost-effectiveness of industry training apprenticeships, costing the taxpayer an average of $10,907 compared to $21,399 for managed apprenticeships. Bryant says that New Zealand's industry training success must be celebrated and recognised, but there is still work to be done. The ITF is seeking a more cohesive vocational education and training sector, with a level playing field for industry training and other education providers. The ITF is a membership organisation representing all of New Zealand’s Industry Training Organisations. A WINNING OPPORTUNITY FROM HINO H ino Distributors (NZ) Ltd are running a nationwide competition which will see the winning recipients upgrading their driver’s licences to either a Class 2 or Class 4. The competition asks entrants the reasons why they want to get their truck licence, and offers them the chance to win a truck licence training package valued up to $1000. The prize includes logbooks (unit standard), theory, practical training and assessment with AMS Group. The first winner was Manawatu-resident Louis Nyman who had his name drawn out at the Central Districts Field Days in March, and he was presented with his prize recently in Palmerston North by Hino New Zealand general manager Ray Roberts. Nyman says he is keen to get his truck licence so that he can start a business providing a portable rehabilitation facility for horses. “At Hino, we’re all about the transport industry,” says Roberts. “That includes encouraging the next 10 | DIESELTALK QUARTERLY REPORT | APRIL 2015 generation of drivers to join a rewarding and growing career option.” “Initiatives such as the Hino competition is a great way to correctly set young people up to join the truck- ing industry,” says AMS Group’s Lower North Island area manager, John Marcus. Marcus will be the person from AMS who will be responsible for training Nyman. ASSET LEASING & FINANCE Is your finance fit for purpose? A s this quarterly issue of DIESELtalk arrives at the beginning of the new financial year, we decided it was time to revisit the world of asset finance, leasing, and insurance for the heavy diesel, logistics, construction, agriculture and equipment sectors. The asset finance/leasing sector is a very competitive one currently, with traditional asset financiers vying for business with large trading banks as well as leasing providers and truck/equipment rental specialists. DIESELtalk FEATURE There is no doubt that the strong domestic economy is driving growth across most of the sectors which DIESELtalk caters to, and which is reflected by strong sales in both new trucks and equipment, but it still remains that many business and fleet operators may not be using the best method of financing for their purposes. In this feature we have spoken to some end users, as well as suppliers of asset finance, leasing, and insurance to present the many and varied options that are available to the SME operator as well as the large corporate fleet. Spreading the financial load DIESELtalk editor Robert Barry spoke to contracting company director Linda Bullock about the positive benefits of using an independent financial broker for capital asset purchases. H aving a relationship with an independent local financial broker who understands your business goes a long way, according to the directors of Wellington-based Keith Bullock Contracting Limited. Glenn and Linda Bullock took over the family-owned business from Glenn's father Keith in 1983, and now their sons Mark and Dean are also active in the day-to-day operations of the company. Linda Bullock says the contracting company has enjoyed a relationship with Crediflex broker Mike Smith for more than 20 years and recently employed Smith’s services to obtain a new Caterpillar excavator. Although the couple do use a national commercial trading bank for their day-to-day company operations, Bullock says its important to spread the financial load and not put all of their eggs into one basket. She says that over the many years they have known Smith, there have been a number of assets purchased through the brokerage model for their growing business. Currently Keith Bullock Contracting Ltd operates seven diggers of varying sizes, as well as two rollers, three heavy trucks – including a Hino and a Western Star, as well as an equipment transporter – and there are around eight to nine pick ups of various sizes and configurations on the fleet. The company carries out earthworks, site clearance, section clearance, demolition work, sub division work, gorse mulching, metal deliver- ies, skip bin delivery, as well as contract work for the Wellington and Porirua councils, and is also a sub contractor to the Fulton Hogan-John Holland joint venture servicing KiwiRail. Bullock says the seasonal workload can be varied and demanding. “Mike’s knowledge of our business and his local knowledge of upcoming developments in the area adds value to the business relationship,” she says. “It’s the benefit of having someone who knows you, knows your business, knows how the industry works and knows what is required that helps. You don’t start from scratch when it comes to securing funds for a new capital asset. “You are not dealing with someone sitting in an office who doesn’t understand you or your business, as well as the area and region you are working in, and the real need for the asset you are trying to finance. “The new Cat excavator is operated by our oldest son Mark, it's his baby and he treats it very well. He had a huge hand in the purchase of the machine and did the bulk of the configuration work pre-sale to make sure it met the growing needs of our workload,” she says. DIESELTALK QUARTERLY REPORT | APRIL 2015 | 11 DIESELtalk FEATURE ASSET LEASING & FINANCE Putting the appropriate finance package together W hile many townies might think that much of the rural sector is comprised of the dairy industry, the asset finance business specialists at UDC recognise it is only one part of our growing economic force. According to UDC national sales manager - equipment dealer, John Wragg, the viticulture, arable, sheep and beef markets are all strong and all are buying new equipment. He comments that the new truck space continues to see growth, and the market for small to medium excavators is also very buoyant. “We’ve had a great start to the year, and seeing our equipment dealers with a positive frame of mind is a good space for us all to be in,” says Wragg. “We will continue to support our equipment dealers at all of the field days throughout New Zealand this year, including the National Fieldays at Mystery Creek, because it’s important that they don’t miss out on any opportunity to close a sale.” John Wragg Wragg says that sales promotions being run by equipment dealers focusing on both structure and price points are proving successful and are examples of where dealers are using financing as an incentive Keep the costs from stacking up. Want someone else to manage your forklift maintenance costs and be able to remove a depreciating asset from your balance sheet? With an operating or finance lease from FleetPartners, you can gain better control and remove the residual value risk from your business. A fully maintained operating lease will also remove the asset from your company’s balance sheet. So don’t get caught with goods that aren’t moving due to machinery needing repair. Talk to FleetPartners today about a Materials Handling lease, give us a call on 0800 532 738 or visit our website www.fleetpartners.co.nz 12 | DIESELTALK QUARTERLY REPORT | APRIL 2015 to encourage their customers to trade up to new gear at an affordable price. “Equipment dealers have grasped the ability to structure deals differently and to use finance in a more creative way with their product offer to better entice their customer,” says Wragg. “We work with the equipment dealers to put together the appropriate package - some products don’t suit some types of finance contract, so we can tailor the package to suit the customer or suit the situation,” he says. Wragg says because there has been strong growth in the equipment and truck space, the equipment and truck dealers who finance through UDC are looking for greater capacity and capability to be able to expedite deals more effectively and efficiently for their customers. Continued on page 13 ASSET LEASING & FINANCE DIESELtalk FEATURE Speed to market is essential W ebbline Agriculture Limited director Stan Malcolm says the greatest benefit of being a UDC equipment dealer to his customers is the speed to market of the UDC Live online finance tool. The family-owned company was set up in 2003 and sells specialist agricultural and forage equipment to the dairy, sheep and beef, and agricultural contracting sectors. There are three Webbline branches located in Southland, Canterbury, and the Waikato. “We need to react quickly to our customer’s needs, because often they need to purchase new equipment urgently when the old gear breaks down, and they have fine weather and a crew waiting to harvest a crop in the field,” he says. “Customers wanting a machine to be delivered to them in a little as two hours is not uncommon during the harvest season which runs from September to April,” he says. Malcolm says that cutting grass silage will begin in Northland in September and that the maize harvest finishes in April, so the need for equipment is wide and varied. “Speed of trade needs to be fast in this circumstance, and provided the customer's application meets the preset criteria within the UDC Live platform, we can get finance approved on the spot which allows our client to take the equipment and get on with the job that day. “A customer recently arrived in our branch at 1pm urgently needing a replacement agricultural trailer for a job, and thanks to the UDC Live system, he left at 4pm with the trailer hitched up and ready for work. “I would say that around 30% of our business is conducted in this way and UDC Live enables us to meet and exceed customer expectations, especially when they need the equipment as soon as possible. Malcolm believes that the sector is still cautiously optimistic about the future, and that there continues to be replacement and upgrading of equipment as well as the urgent purchases. PUTTING THE APPROPRIATE FINANCE PACKAGE TOGETHER Continued from page 12 Hence the online UDC Live platform now has an application for equipment and truck dealers to use, and Wragg says that its an efficient tool providing real-time information at the dealers finger tips. Adopting the finance models and technologies from the motor vehicle dealer space into the equipment and truck space, has enabled these dealers to better serve their customers, and they can sell not only the equipment, but also warranty and service plans through a finance package that suits the needs of SME operators. The new UDC Live platform allows vendors of trucks and equipment to secure the sale and the customer right away, which is very important in such a busy and competitive market that New Zealand is currently experiencing. “Speed is key. UDC Live gives an instant approval securing the customer right away”, says Wragg. UDC continues to offer term loans, credit sale agreements, finance leases, and revolving credit facilities so that SME businesses in the rural sector can pick the product that best suits their particular need or asset. “We are continually focused on better serving our equipment dealer customers to enable them to be better focused on serving theirs,” says Wragg. DIESELTALK QUARTERLY REPORT | APRIL 2015 | 13 DIESELtalk FEATURE ASSET LEASING & FINANCE Building strong relationships in the transport industry F rom starting out as a trailer rental company in 1992, the familyowned TR Group has grown to become New Zealand’s biggest truck and trailer leasing and rental provider but has maintained its focus on growing its brand through both staff expertise and professionalism as well as personal relationships. In the first six years of operation TR Group solely focussed on trailer rentals before moving into trucks. Now trucks make up two thirds of the fleet and trailers one third in an operation which functions 24 hours a day, seven days a week, all year around. As part of providing a greater service to current and future customers beyond just truck leasing and rental, TR Group also has a shareholding in MasterDrive Services which supports the delivery of fuel efficiency and safety programmes through its operational support services division. “People come to us to get a job done in the best possible way, and they keep on coming come back to us because our people treat them in the best possible way,” says TR Group managing director Andrew Carpenter. “While leasing might be the mechanism that you do business with us, people come to us because they want to deal with our people who have the expertise and add value. Our customers know that their truck is always in good hands and that there is always someone at the end of the phone 24/7.” TR Group says that more than 70% of its business is focussed on longterm leasing with rental business making up the remaining 30%, but it says that it will easily drop a rental fleet truck out of the pool to help a lease customer with a short delivery requirement. TR Group services both corporate customers and SME businesses as well as owner operators, and has a large and varied fleet from which to do so. It predominately operates trucks from 5-tonne GVM and above, and covers all facets of the transport industry from metro operations to long-haul, with a range of trucks including HPMV, curtain siders, reefers, container trucks, tippers, tankers, dairy tankers and even logging trucks. “Providing a bespoke leasing solution to the customer is more than just getting the finance component right, the truck needs to be right for the job on day one, and then for every day thereafter,” says Carpenter. “Virtually all of our leases run from 4 to 8 years which often involves carting for 6 to 800 kilometres a day at 50 tonnes, so its vital that we ensure the customer has the right truck and equipment to do the job properly,” he says. “We need to make sure the truck is fit for the purpose intended, but also it's important to have the flexibility to change the truck, or the configuration of the truck, if things should ever change during the lease period, and these changes and variables can include legislation, a new driver, a different workload, a change of company ownership or policy, and economic conditions. “There’s a perfect home for every truck, and although most of our newly commissioned fleet is built for 50MAX operation, there are still customers who require only a 44 tonne GVM truck for their operations. “When a 4 to 5 year lease term expires, we can re-cut the lease to suit 14 | DIESELTALK QUARTERLY REPORT | APRIL 2015 the clients need or the truck can be moved to another client,” says Carpenter. “There’s always a perfect home for every truck.” With the current demand for new truck builds seeing lead times on delivery increasing beyond 6 to 9 months, TR Group has seen a demand for rental vehicles to cover the increasing volume of work generated by the buoyant economy. Most lease customers are on a fully maintained operating lease arrangement, which allows TR group to ensure the truck and trailer are proactively maintained over the life cycle of the vehicle to minimise downtime for their client. “We want to ensure the client has a good experience while they are using the truck and dealing with TR.Because of the breadth of experience within the maintenance team we often know what may go wrong with a truck during its life time so we’ll get ahead of it and do preventative maintenance to ensure it doesn’t happen,” says TR Group national sales manager, Shane O’Grady. “TR Group is made up of a group of people who understand the unique requirements of the transport industry and are extremely passionate about operating, maintaining and selling the services of our fleet.” ASSET LEASING & FINANCE DIESELtalk FEATURE A 'one stop shop' service W ith the recent addition of materials handling equipment to the FleetPartners commercial asset leasing portfolio, the company now offers its clientele a ‘one stop shop’ for all their vehicle and materials handling requirements. ‘Having received enquiries from our customers over the past 12 months and knowing that a large number of fleet managers are now in charge of all vehicles and equipment, this seemed a natural addition to the FleetPartners stable, says FleetPartner's general manager Dean Purves. What made it easier was that we were already discussing with Centra Forklifts how we might work together and bring a full fleet solution to both ours and their customers." To that end, FleetPartners has co-branded with Centra Forklifts to be able to offer a range of fork lifts, reach stackers, order pickers and forklift telehandlers. Purves says the forklift telehandlers in particular are very popular for working in confined spaces, and are great for lifting pallets from one side of a truck or a rail car without the need for extension forks, and enables the job of loading or unloading to be completed quickly and safely. According to Purves, FleetPartners differentiates itself from industry competitors by focusing on customer service as its number one priority. “We have a high touch point relationship management model with all of our Dean Purves customers,” says Purves. “Our relationship management team is one of the largest within the local vehicle leasing industry and our last customer experience research had them achieve a +27 'net promoter score', leaving our competitors in the dust.” The growth of the new heavy vehicle market during 2014 (RUC type 6 and above) pushed through the 4000pa mark for the first time on record, according to Infometrics, March 2015 forecast report. Purves believes that there is still some catch up going on in the heavy vehicle space from post-GFC deferment and this is all helped along with the elevated NZ dollar. “The demand for sale and leaseback from the heavy commercial vehicle customer has also increased as the demand for capital to fund business expansion has grown,” says Purves. “There has been a substantial update of this financial instrument as companies look to unlock funds for growth from their existing fleet of assets.” Purves makes the observation that large corporate customers tend to prefer Continued on page 17 GIGA HD: FACTS AND FIGURES Continued from page 15 Isuzu Motors says that the new Giga HD models offer improved airflow around and under the cabs as well as improved cooling capacity and reduced fuel consumption. While the distributor wouldn’t give out the exact diesel consumption figures, it says in a side by side evaluation test with a European model in New Zealand, a Giga HD combination unit equipped with the 18-speed Eaton Road Ranger gearbox produced consumption that was similar to and at times better than the Euro truck under some severe local testing conditions. Muir told DIESELtalk that arrival times for the new VC36 Giga HD models are based on current start of production. All manual Giga HD 8x4 models are due to arrive in June and July, followed by all 8x4 AMT models in August and September. All of the Giga HD 6x4 models with manual and AMT transmissions in both truck and tractor configurations are due to arrive in August and September. Current Isuzu Truck owners in New Zealand will be pleased to see the return of “favourites” in the big truck range. Here is a brief summary of some of the new Giga HD models: The CYZ460 (6x4) returns with the option of the 18-speed Eaton Road Ranger manual or the Isuzu 16-speed AMT transmission, magnetic driveline retarder, 7500kg front axle, low roof, 319mm chassis, and SCR emission control, not DPD. The CYH460 (8x4) and CYH530 (8x4) return with the option of the Eaton or Isuzu AMT transmissions, and the option of a 582mm or 319mm chassis, the 460 has a low roof and the 530 a high roof, and both have SCR emission control, not DPD. The CYJ560 (8x4) and the CYJ530 (8x4) return with the option of the Eaton or the Isuzu AMT transmissions, a 285mm chassis, air-bag suspension, and SCR emission control, not DPD. The EXY460 (6x4) and EXY530 (6x4) tractor units return with the option of the Eaton or AMT transmission, a 285mm chassis, air-bag suspensions, the 460 has a low roof, and the 530 a high roof, and both have a 7,500kg front axle. A full run down on the new Euro 5 Giga HD model range will follow in the next DIESELtalk issue. DIESELTALK QUARTERLY REPORT | APRIL 2015 | 15 Every Customer, Every Vehicle, Every Day ASSET LEASING & FINANCE DIESELtalk FEATURE Specialist transport insurance brokers O’Connor Warren grows and expands W hen O’Connor Warren director Eamon O’Connor branched away from the corporate world to establish his own specialist transport and trucking insurance brokerage more than two years ago, he says he didn’t appreciate the significant interest this move would generate. O’Connor is also a former board member of the New Zealand Trucking Association and general adviser to many industry bodies and groups around matters of insurance and risk. He has garnered a respected track record across New Zealand transport risk management, with his knowledge through the industry’s insurance, risk and legislation issues. His expertise and passion for getting results for clients has been recognised and reflects in the exponential growth they have enjoyed since O’Connor Warrens doors were opened in January 2013. Eamon O’Connor explains, “We have found that our specialist knowledge, expertise and proactivity is proving to be the difference. We are attracting a broad range of operators - big and Keep up with daily transport and equipment news www.dieseltalk.co.nz small. It’s our reputation for providing market leading advice, solutions and service that is at the forefront of our success.” O’Connor says the key has and risk services for transport and other select sector clients gives us a true endto-end brokerage service,” he says. “Significant demand has Eamon O’Connor is a director of O’Connor Warren Insurance Brokers, which specialises in transport and logistics insurance. He will be sharing his expertise on risk management and insurance matters in DIESELtalk. He can be contacted at: eamon@oconnorwarren.co.nz been its ability to offer the client genuine and knowledgeable advice on business issues, as well as effectively structuring their insurances so that it has an impact on the efficiency and profitability of their business. “We have achieved all of the objectives we set out to do more than two years ago, and I’d like to point out that this is a long-term proposition, we intend to be here well into the future. “There are very few Kiwiowned insurance broking houses left operating in New Zealand. We continue to see the retirement of older broking directors and the subsequent sale and acquisition of their businesses into the international insurance broking models. There is no doubt that this trend leaves us as an attractive proposition for the insurance buyer.” The Tauranga domiciled operation now has seven operating staff and effective from April 15 launches its Life & Health division. “Adding Life & Health to our portfolio of insurance come in recent times, particularly from our larger clients looking for genuine employee benefits (life and medical packages) to offer their staff. It ties in nicely with our existing business insurance offering.” says O’Connor. O’Connor Warren has appointed two specialists to look after its life and health division, which is headed by Darren Cornforth who has more than 30 years experience. “Too often owners of SME businesses have motor vehicle cover, public liability and business protection insurance but they themselves are not protected should something happen to them,” says Cornforth. “We will pick the company that’s right for you, we will recommend a policy that is in the top four available on the market, we keep an eye on your insurances so your cover is always up to date, and if you already have cover, we are happy to provide a free assessment to make sure its adequate and properly structured to meet your needs,” he says. A ONE-STOPSHOP SERVICE Continued from page 15 fully maintained commercial operating leases for their heavy commercial fleets while there has been a slower uptake from the privately held transport companies, but he says some are beginning to realise the benefits of a lease product, be that an operating lease or a finance lease. “Finance leases that offer no deposit, structured monthly payments, and a residual balloon payment at the end of the term are certainly growing in popularity in the heavy commercial space,” says Purves. “For many a finance lease can often be the stepping stone to a fully maintained operating lease, particularly when the finance lease is backed by our commercial managed maintenance product. It’s simply a matter of choosing a product that is fit for purpose for their need.” DIESELTALK QUARTERLY REPORT | APRIL 2015 | 17 NEWSTALK Giga: Behind the scenes There is an incredible amount of human and digital resource that goes into the development and testing of a new heavy duty truck. Robert Barry saw some of the application of this while visiting Isuzu Motors Limited in Japan. A s you saw on the front page of this quarterly issue, our first introduction to the new Giga HD was at the Wacom testing facility, near the city of Sapporo in the northern Japanese island of Hakkaido. Wacom is one of 26 proving grounds in the region operated by all of the Japanese automotive brands and suppliers to the automotive and truck manufacturing industry. Hokkaido endures some particularly extreme cold and snowy weather during the Japanese winter, so its ideal for testing a ve- hicles performance in these conditions. The facility was first opened by Isuzu Motors in November 2002 but was eventually spun off from the company to become an independent operation, though it is still primarily used by the manufacturer and it’s customers. There are more than 190 staff employed at Wacom. Thanks to being located in the southern region of Hokkaido the 443 hectare facility provides Isuzu Motors with all year round testing, as well as driver training events 18 | DIESELTALK QUARTERLY REPORT | APRIL 2015 for customers on public holidays. The facility encompasses a high-speed test course, as well as a straight line circuit, a low friction surface track, a cross country course, a Belgian block road (also known as pave, or cobblestones), a long wave road, a dirt and gravel circuit and six different elevation slopes. Having the mixture of real world surfaces and conditions in one place allows the Isuzu Motors engineers and testing personnel to conduct every known durability and endurance test in the industry. Even on a Sunday we saw Wacom test staff driving Isuzu evaluation units around the various circuits. And judging by the amount of different Isuzu truck models we saw parked around the periphery of the test circuits, it would be fair to assume that the trucks are thoroughly and rigorously put through their paces. This is further backed up by the facilities on offer at the Isuzu Motors Limited Research & Development centre which is housed Continued on page 19 NEWSTALK Waiting for a test run at Wacom Truck of the future and past Continued from page 18 within the Fujisawa production operation located 90 minutes south of Tokyo. In the words of the Japanese lady guiding us through Fujisawa, the size of the entire operation including production of engines and trucks, R and D, and the Isuzu premium club onsite for customers, is equivalent to “two Disneyland’s” thats around 100 hectares. Isuzu Motors has also built its own wind tunnel facility at Fujisawa with a chassis dynamometer testing unit that can accommodate all truck models from light duty to heavy duty. According to the heavy duty truck engineering chief Hagimori-san, Isuzu Motors Editor at the wheel is the only global truck manufacturer which has a facility of this scale, and allows the trucks to be subjected to extremes of temperature from minus 40 degrees celsius to 50 degrees celsius. And the facility can move from doing cold tests on the trucks to hot tests in as little as two hours! Equally impressive is the environmental testing facility for the diesel engines. Located on the Fujisawa site there are no less than 130 test cells for the diesel engines. Isuzu Motors can simulate an environment up to 5,000 metres above sea level to test the durability and operating efficiency of its engines as well as subjecting them to inclination tests of up to 35 degrees forward and aft as well as up to 45 degrees listing to the left or the the right. Isuzu Motors have engineered a testing jig for the engines which allows them to prepare a unit to be hooked up and on the test bed in as little as ten minutes. We were told that the consumption of diesel can run into tens of thousands of litres daily. During his presentation to the New Zealand delegation, Hagimori also talked about Isuzu Motors other global R and D operations, which are located in Europe, China, Indonesia, the USA, and Thailand. He commented that Isuzu Motors had strategically set up facilities in those markets to pursue greater efficiencies when developing vehicles for them. Isuzu Motors also uses digital analysis when developing new vehicles through computer aided engineering to verify handling and stability as well as durability and rough road performance, before prototypes are built and then subjected to driving and collision testing. The company is also building a new interactive training and visitor centre which will be called Isuzu Plaza, which will open this year and also means that media may no longer be granted access to visit parts of the R and D centre as we were. DIESELTALK QUARTERLY REPORT | APRIL 2015 | 19 ards Richard Edw NEWSTALK March 9 DIESELtalk itor Managing ed ards Richard Edw onth looks at the m gone by on .nz dieseltalk.co r the Daily news fo rt and heavy transpo ctors. se t en pm ui eq DIARY March 4 March 6 Navman Wireless to merge with US firm More accidents follow port safety inquiry call New Zealand-founded vehicle telematics firm Navman Wireless has announced a merger with US competitor Teletrac Inc, in a bid to create one of the world’s largest global telematics organisations. The combined company will be run by an executive management team selected from both Teletrac and Navman Wireless. TJ Chung, Navman Wireless president and chief executive officer, will lead the joint company. n3 appoints Manheim for vehicle and asset disposal n3, the current name for what was previously the Government Supply Brokerage, has appointed auction his Manheim as its preferred supplier for disposal services. The multi-year contract will see Manheim provide n3 members with access to their wide range of vehicle and equipment disposal sales channels and vehicle and equipment sale preparation services. The contract was previously held by Turners Auctions. Two serious port accidents have occurred so far in the week since the Maritime Union renewed its call for a national inquiry into New Zealand’s port safety. A Port of Lyttelton worker suffered a broken arm on the morning of Tuesday March 3, after a fall aboard a vessel. Two C3 employees in the Port of Timaru were taken to hospital after an incident aboard a container vessel on the early morning of Wednesday March 4. Construction crime wave in Canterbury A unfortunate side effect of the Canterbury rebuild is the growing amount of opportunistic theft from the vehicles of tradespeople, as well as containers and construction sites says Canterbury Police. The most common thefts are power tools, trailers, plate compactors, generators and diesel fuel. Investigations are ongoing into the theft of 50 bags of under floor insulation valued at $20,000.00 from a warehouse in January. 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 Aussie economy dips Fulton Hogan profit According to Fulton Hogan its first-half pre-tax earnings dropped 10% as Australia’s economic woes kept a lid on resources and state sector spending, while the strong kiwi dollar eroded profit earned across the Tasman. Pre-tax net profit fell to $83.4 million in the six months ended Dec. 31 from $92.8 million a year earlier according to a statement released by the company. March 10 Remaining Expressway work to start Work on the remaining three sections of the Waikato Expressway is set to get underway this year, following approval by the NZ Transport Agency board to spend $1.08 billion on the construction of the Hamilton and Longswamp sections. When completed the expressway will extend 102km from the intersection of State Highway 1 and 2 at the base of the Bombay hills in the north, to just south of Cambridge. The continuous, divided four-lane highway will reduce the length of State Highway 1 by 6km. The approval in spending on a major trade route through the Waikato shows the Government’s commitment to unlocking New Zealand’s potential for economic growth says Transport Minister Simon Bridges. HPMV permit applications now available online A new online high productivity motor vehicle (HPMV) permitting system will be rolled out by the NZ Transport Agency nationwide after a successful implementation in Auckland. This new system will enable all HPMV operators to apply for their permits online from mid-March 2015. Applying online means operators will have the benefit of a system which offers a range of features including tracking each step of their permit’s progress and remembering details to make repeat applications much easier and faster says the Transport Agency. Equipment salesman jailed for fraud A former top salesman for an agricultural machinery supplier has been sentenced to two years and seven months prison after admitting 29 dishonesty charges totalling nearly $352,000. According to The Southland Times, Judge Micheal Turner told the Invercargill District Court that 56-yearold Paul Yeo ripped off a former employer, a business partner, a finance company and numerous long-time friends between 2006 and 2010. Judge Turner says Yeo used his friends and his knowledge of how agriculture equipment was financed to commit the crimes. More Kiwi acquisitions for Penske? Having invested heavily in the Australasian transport and heavy engine industry and launched a V8 Supercars team, billionaire American Roger Penske has revealed his likely next move will be to start acquiring automotive dealerships in Australia, according to motoring.com.au. “We need to digest our trucking and transport acquisitions over the next 12 months, but out of the corner of my eye I would say there is an opportunity for retail automotive,” March 11 More local bodies supporting effluent expo More than 50 exhibitors are confirmed for the Waikato Effluent Expo at the Mystery Creek events centre on Tuesday March 17 (St Patricks Day). Continued on page 21 20 | DIESELTALK QUARTERLY REPORT | APRIL 2015 NEWSTALK While most attendees last year came from the Waikato region, some farmers came from as far away as Northland, Taranaki and Wairarapa. This year the Bay of Plenty and Taranaki regional councils have promoted the expo as a place for farmers in their areas to learn about developments in effluent management. The event is in its fifth year and it is hoped attendance will top last year’s figure of 650. March 12 Crack down on drug and alcohol impairment The government is set to get tough on people impaired by drugs or alcohol when operating aircraft, marine vessels or railcars. A discussion paper exploring regulatory options for managing drug and alcohol impairment in the aviation, maritime and rail sectors has been released today by the Ministry of Transport. It is a response to the Transport Accident Investigation Commission’s calls for laws to stop commercial transport operators or recreational users if they are impaired by drugs or alcohol. March 17 Pacifica announces new coastal shipping service Pacifica Shipping says it will take delivery of a new 1100 TEU vessel, the Spirit of Canterbury, on March 19 in New Zealand. The new vessel has a 220 reefer unit capacity, and it will be introduced onto the New Zealand coastal shipping route. It will offer a dedicated weekly service across the following port rotation: Auckland, Lyttelton, Nelson, Tauranga and back to Auckland. “This investment in new tonnage underlines Pacifica’s commitment to supporting New Zealand’s domestic transport infrastructure,” says Pacific Shipping chief executive Steve Chapman. March 18 Forestry truck expert recognised by peers Logging truck engineer, Lincoln Taylor has been awarded a Fellowship of the Institution of Professional Engineers NZ for his contribution and leadership in making New Zealand logging trucks and trailers stronger and safer. IPENZ says Taylor is a leading designer in the heavy road vehicle industry in New Zealand. He has lead the improvement of codes and standards for heavy vehicle certification and was a founding member of the Log Transport Safety Council. Big ticket items popular at Field Days More than 30,000 visitors attended last weekends Central Districts Field Days and exhibitors with “big ticket” items such as machinery and tractors saw good transaction levels. Fairfax NZ AgriMedia brand manager Dean Williamson says exhibitors at the site were up on last year, reaching almost 560, with 111 new exhibitors. “The farmers looking to splash out were on a mission – they knew what they were after and hunted it down,” says Williamson. March 19 More HPMV capable bridges in Otago The New Zealand Transport Agency says it has more than $1.6 million worth of bridge strengthening work under way in Central Otago and the Queenstown-Lakes district, to allow HPMV vehicles with loads up to 58 tonnes to use four bridges in the area. The work is on the State highway 8 (SH8) Alexandra bridge, plus 3 bridges on State highway 6 (SH6) in the Kawarau Gorge between Cromwell and Queenstown. Fliway IPO priced at $1.20 a share Transport and logistics operator Fliway Group has been priced at $1.20 a share in the book-build for its $34 million initial public offering. According to a BusinessDesk report existing shareholders Duncan and Gretchen Hawkesby will retain 54% of the South Auckland-based company. The couple planned to retain 30 to 50% of the company after the IPO, according to the prospectus lodged with the Companies Office this month. The shares had been offered in an indicative range of $1.20 to $1.40. March 20 Profit increase forecast by Mainfreight Mainfreight expects annual profit to rise as much as 7.1% on revenues in excess of $2 billion. According to BusinessDesk, Mainfreight has said profit excluding abnormal items will be in a range of $80 million to $83 million in the year ending March 31, up between 3.2% and 7.1%. Annual earnings before interest, tax, depreciation and amortisation will be between $156 million and $160 million, up between 4.6% to 7.2%, says Mainfreight. The result will be released May 27. Stock transport breaches condemned by industry bodies Industry bodies Federated Farmers and DairyNZ have both warned farmers and trucking operators that animal welfare rules must be adhered to when transporting stock regardless of their desitnation. The regulation reminder comes following recent news and social media comments on a case now being investigated by the Ministry for Primary Industries (MPI). A picture of Jersey cows being transported across Cook Straight for slaughter recently, led to thousands of shares on Facebook, attacks on farming practices and a complaint to MPI. Container volume up 3% at Ports of Auckland Ports of Auckland has released its half year results and says against expectations freight volumes were up across all areas. Container volumes rose 3% against an expectation that volumes would fall as a result of the loss of a significant service (to Port of Tauranga) and given the impact from congestion at overseas ports. A new truck facility has been built to speed up container handling and rail services to the inland port at Wiri have been quadrupled, resulting in 3000 fewer truck movements a month to and from the terminal. March 23 NRC: AMETI needs to address freight issues Auckland Transport must re-think the next stage of the Auckland Manukau Eastern transport initiative (AMETI) project to ensure trucks and general traffic can travel the planned route safely says National Road Carriers. “The focus of the project needs to be widened beyond meeting the needs of just buses, cyclists and walkers,” says NRC chief executive David Aitken. March 31 Waimea contract carriers in voluntary admnistration Nelson-Marlborough based log transport business Waimea Contract Carriers Limited has been placed into voluntary administration, with Price Waterhouse Coopers partners John Fisk, and Richard Longman appointed as the administrators. It is the intention of the two administrators for Waimea Contract Carriers to continue to trade as usual, while they assess the options available to rehabilitate the business. DIESELTALK QUARTERLY REPORT | APRIL 2015 | 21 TESTTALK French white van man BY ROBERT BARRY T here has never been so much choice before in the mid size delivery van segment with the arrival of more European products to give the short wheelbase Toyota Hiace and the Hyundai iLoad a run for their money. Enter stage left comes the Renault Trafic, available as you see here with twin glazed rear doors with no bulkhead, or you can have a “blind” version with the twin sliding doors and no glazing for $49,990. There is also a glazed version of the Trafic that has a iron bulkhead with internal window, a twin rear door set-up that opens to 270 degrees, and this model is also equipped with rear parking sensors, which is a very good thing when the rear view is compromised, for $51,990. While Renault vans haven’t widely featured in the New Zealand market in recent years, they have been the category leader for the last 16 years in Europe, and as far back as 1907 Renault supplied commercial van chassis to the London Taxi market! Our test vehicle was a long wheelbase model which has 5.9 cubic metres of load space and a 2.8m load length. It was also equipped with the six-speed automated manual transmission (AMT), and was one of the better examples of this style of gearbox that we’ve come across. The Trafic is powered by a 2-litre fourcylinder common-rail turbo diesel engine which offers 85kW of engine power and 290 Newton metres of torque. Those figures may sound quite modest, but the Trafic engine produces its maximum torque at 1600 rpm, so combined with the well spaced gears of the six-speed AMT, you find the van has quite a bit of get up and go, especially when unladen. While the single-clutch AMT doesn’t have the lightening fast response of a dual-clutch system, it was still relatively smooth and efficient, feathering the throttle as you would do in a fully manual car allowed for smoother gear changes, and the gearbox does become quite intuitive and works with the driver, rather than against them. You can also manually change up or down a gear should you wish. The Trafic is a front-wheeldrive vehicle, which gives it the ability to have a lower loading floor, as well it also has a lower roof height of 1.97m and a body width of 1.91m which will allow it to be driven into multi storey buildings which is ideal for urban-based trades-people or delivery drivers. Towing capacity (braked) is rated at 2,000kg for the Trafic and the payload capacity for the AMT version is rated at 1,222kg. Inside the cabin you find seating for three people, theres a two person bench seat for passengers, though it is rather snug for two Kiwi-sized rugby blokes, rather than two slim French soccer players. The driver has a comfortable multiadjustable seat of their own with height adjustable seat belt, as well as an adjustable steering wheel, and finger tip controls for the cruise control with speed limiter, as well as the radio and Bluetooth telephony. As you would now expect from a mobile workplace, there has been a bit of thought placed into storage around the cabin. Theres an assortment of cup holders, bottle holders, card holder, 22 | DIESELTALK QUARTERLY REPORT | APRIL 2015 A4-sized document holder, and an oddments tray up front. The Grey ‘Galatone’ cloth upholstery looks durable and feels comfortable to sit on, and while the plastics might look and feel a bit hard, no doubt they will remain rattle free for the many thousands of km that this workhorse will be subjected to during its working life. The manual air-conditioning in the Trafic works well, the audio system provides a decent quality of sound and there’s even a CD player, but sadly the quality of the Bluetooth reception in our test vehicle wasn’t brilliant. It might have been the quality of the connection between my iPhone 5C and the head unit, but call recipients commented that sound quality was marginal to poor. Safety is also a consideration in any mobile workplace, and the Trafic of- fers a driver and passenger airbag, ABS brakes with electronic brake distribution and emergency brake assist. Unsurprisingly for a vehicle that carries valuable cargo, there is an alarm and immobiliser fitted as standard, and the remote central locking with three button ignition key, allows you to have the front cabin unlocked but the rear locked, for obvious reasons. There’s a long options list which allows fleet buyers to spec a Trafic to meet their exact needs and requirements, including an upgrade from the standard steel wheels to alloy rims if required, as well as navigation, automatic climate control, single passenger seat, and fog lamps. But in summary, the real appeal of the Trafic apart from it’s practical nature has to be it’s unique exterior style amongst a sea of mostly boring boxes, and for that it certainly deserves a second look from light commercial buyers. PEOPLETALK STATSTALK Isuzu continues the new truck charge I suzu trucks continues to be the market leader for quarter one 2015 with 86 truck and bus registrations in March and a year to date tally of 240 units as opposed to 192 in the previous corresponding period last year. Hino followed in second place with 144 registra- NEW HEAVY TRUCKS OVER 23,001KG MARCH 2015 MAKE VOLVO DAF ISUZU HINO SCANIA FREIGHTLINER KENWORTH MITSUBISHI FUSO MAN UD TRUCKS OTHER TOTAL MAR'15 MAR'14 48 43 27 30 26 20 24 23 18 18 11 9 10 10 10 12 9 12 9 10 31 29 223 216 % Change 11.6 -10.0 30.0 4.3 0.0 22.2 0.0 -16.7 -25.0 -10.0 6.9 3.2 NEW MEDIUM TRUCKS 9001-23,000KG MARCH 2015 MAKE HINO ISUZU MITSUBISHI FUSO UD TRUCKS MERCEDES-BENZ OTHER TOTAL MAR'15 MAR'14 % Change 22 21 4.8 20 28 -28.6 19 27 -29.6 14 12 16.7 3 2 50.0 6 25 -76.0 84 115 -27.0 % of Market 26.2 23.8 22.6 16.7 3.6 7.1 100.0 ISUZU MITSUBISHI FUSO MERCEDES-BENZ FIAT HINO FOTON FORD OTHER TOTAL MAR'15 MAR'14 % Change 37 24 19 18 15 3 2 6 124 35 27 18 17 18 3 4 12 134 5.7 -11.1 5.6 5.9 -16.7 0.0 -50.0 -50.0 -7.5 % of Market 29.8 19.4 15.3 14.5 12.1 2.4 1.6 4.8 100.0 corresponding period, and third placed Mitsubishi Fuso Continued on page 24 NEW TRUCK MAKES ALL WEIGHTS OVER 3500KG – MARCH 2015 MAR'15 ISUZU HINO MITSUBISHI FUSO VOLVO DAF MERCEDES-BENZ UD TRUCKS SCANIA FIAT MAN OTHER TOTAL 86 61 58 48 28 28 24 23 18 14 71 459 MAR'14 % Change % of Market 85 62 71 44 38 26 22 22 17 27 81 495 1.2 -1.6 -18.3 9.1 -26.3 7.7 9.1 4.5 5.9 -48.1 -12.3 -7.3 18.7 13.3 12.6 10.5 6.1 6.1 5.2 5.0 3.9 3.1 15.5 100.0 NEW BUSES OVER 3500KG – MARCH 2015 MAKE NEW LIGHT TRUCKS 3500-9000KG MARCH 2015 MAKE tions for the first quarter, a slight drop on the 157 units registered in the previous MAKE % of Market 21.5 12.1 11.7 10.8 8.1 4.9 4.5 4.5 4.0 4.0 13.9 100.0 Vehicle Inspection NZ MAR'15 MAR'14 % Change % of Market ALEXANDER DENNIS MITSUBISHI FUSO SCANIA ISUZU MAN OTHER TOTAL 6 5 4 3 3 7 28 12 5 4 2 4 3 30 -50.0 0.0 0.0 50.0 -25.0 133.3 -6.7 21.4 17.9 14.3 10.7 10.7 25.0 100.0 NEW LIGHT COMMERCIAL MAKES UNDER 3500KG – MARCH 2015 MAKE ISUZU MITSUBISHI FUSO MERCEDES-BENZ FIAT HINO FOTON FORD OTHER TOTAL MAR '15 37 24 19 18 15 3 2 6 124 MAR '14 35 27 18 17 18 3 4 12 134 % Change 5.7 -11.1 5.6 5.9 -16.7 0.0 -50.0 -50.0 -7.5 % of Market 29.8 19.4 15.3 14.5 12.1 2.4 1.6 4.8 100.0 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 DIESELTALK QUARTERLY REPORT | APRIL 2015 | 23 PEOPLETALK STATSTALK Isuzu continues the new truck charge Continued from page 23 also saw a slight drop in first quarter registrations from 145 in 2014 to 132 in 2015. Volvo trucks enjoyed a better first quarter in 2015 up three units to 84 registrations, UD trucks increasing from 52 to 69, and Scania saw its first quarter registrations rise from 41 to 61. Heavy truck and bus registrations in total grew from 1147 in the first quarter of 2014 to 1191 in the first quarter of 2015. Local distributor Isuzu Trucks New Zealand says 878 new trucks were registered in 2014 and general manager Colin Muir commented to AutoTalk, while on a trip to Japan for the media launch of the new Isuzu Giga HD truck, Colin Muir that he thinks market growth this year will be in line with GDP. It is Muir’s opinion that the market will start to cool towards the end of 2015, he feels that Isuzu Trucks will see sales of its N-Series light truck cool off, and NEW HEAVY TRUCKS OVER 23,001KG QTR JAN-MAR 2015 MAKE VOLVO ISUZU HINO DAF KENWORTH SCANIA FREIGHTLINER MAN UD TRUCKS MITSUBISHI FUSO MACK IVECO MERCEDES-BENZ WESTERN STAR RENAULT INTERNATIONAL CATERPILLAR DENNIS EAGLE GROVE LIEBHERR FACTORY BUILT PETERBILT TEREX TOTAL QTR'15 QTR'14 % Change 83 78 6.4 72 58 24.1 56 50 12.0 55 47 17.0 45 36 25.0 43 31 38.7 38 27 40.7 35 33 6.1 32 23 39.1 28 31 -9.7 27 10 170.0 13 11 18.2 12 15 -20.0 11 12 -8.3 9 6 50.0 6 7 -14.3 5 8 -37.5 2 2 1 100.0 2 2 0.0 1 6 -83.3 1 1 579 492 17.7 % of Market 14.3 12.4 9.7 9.5 7.8 7.4 6.6 6.0 5.5 4.8 4.7 2.2 2.1 1.9 1.6 1.0 0.9 0.3 0.3 0.3 0.2 0.2 0.2 100.0 NEW MEDIUM TRUCKS 9001-23,000KG QTR JAN-MAR 2015 MAKE ISUZU HINO UD TRUCKS MITSUBISHI FUSO IVECO MAN MERCEDES-BENZ DAF SCANIA KENWORTH RENAULT VOLVO KATO TOTAL QTR'15 QTR'14 % Change 60 49 22.4 52 50 4.0 36 29 24.1 32 42 -23.8 9 11 -18.2 6 27 -77.8 6 7 -14.3 3 9 -66.7 3 2 50.0 1 1 2 -50.0 2 -100.0 1 -100.0 209 231 -9.5 24 | DIESELTALK QUARTERLY REPORT | APRIL 2015 % of Market 28.7 24.9 17.2 15.3 4.3 2.9 2.9 1.4 1.4 0.5 0.5 0.0 0.0 100.0 the medium size F-series may be a little stagnant, but the new Giga HD will definitely grow sales as that segment grows. The 2015 launch of the new Isuzu Giga HD truck will see the range grow from 9 models to 18. Isuzu Trucks wants to gain the number one heavy duty truck sales title back, and it says the addition of a model with a 285mm chassis, a manual gearbox, and air suspension will help it to regain some lost share in the stock truck sector. “I think overall there will be a consolidation of growth in the three segments in 2015 back into the teens, not the 26% that we saw in the market last year,” says Muir. “The constraints of the local truck body building industry will undoubtedly have some effect on new truck registrations given that its at 93% capacity of skill and utilisation.” Hino on track for a strong second quarter Hino Distributors general manager Ray Roberts says the greatest highlight for the brand in the first quarter of 2015 was the continued market confidence in what is normally is a traditionally quieter period for the industry. “Hino exceeded its sales targets for the first quarter of 2015 and that will show through in the registration Continued on page 25 NEW TRACTOR REGISTRATIONS – MARCH 2015 MAKE MAR'15 MAR'14 % Change JOHN DEERE NEW HOLLAND KUBOTA TRACTOR CASE IH MASSEY FERGUSON DEUTZ-FAHR CASE CLAAS OTHER TOTAL 39 19 12 12 11 11 7 5 4 18 138 39 20 8 8 12 4 7 4 5 11 118 0.0 -5.0 50.0 50.0 -8.3 175.0 0.0 25.0 -20.0 63.6 16.9 % of Market 28.3 13.8 8.7 8.7 8.0 8.0 5.1 3.6 2.9 13.0 100.0 NEW LIGHT TRUCKS 3500-9000KG QTR JAN-MAR 2015 MAKE ISUZU MITSUBISHI FUSO FIAT HINO MERCEDES-BENZ FORD FOTON IVECO HYUNDAI VOLKSWAGEN CHEVROLET DODGE GMC MAN RENAULT JAC FACTORY BUILT TOTAL QTR'15 QTR'14 % Change 97 79 22.8 58 59 -1.7 56 48 16.7 36 56 -35.7 34 36 -5.6 9 5 80.0 7 7 0.0 6 10 -40.0 4 2 100.0 3 9 -66.7 2 2 0.0 1 1 1 1 1 0.0 2 -100.0 1 -100.0 316 317 -0.3 % of Market 30.7 18.4 17.7 11.4 10.8 2.8 2.2 1.9 1.3 0.9 0.6 0.3 0.3 0.3 0.3 0.0 0.0 100.0 PEOPLETALK STATSTALK Continued from page 24 data in the coming months,” says Roberts. “It will however be difficult to hold the number one position in heavy duty trucks this year, as Hino did in 2014, due to the extremely competitive market and regulatory changes,” he says. Roberts says that Hino is keeping pace with the market. “We are always looking to improve our market share and promote the brand to current and new customers alike. According to Roberts, one thing remains constant with the Hino brand and that is its QDR. He says the quality, durability and reliability hallmarks of the brand is the reason behind its success in NZ. “It was an even spread of sales in the first quarter of this year across all segments and models which is pleasing. Most pleasing is the Hino 300 series or light duty range which has gone from strength to strength within the market. “The light duty product has many safety features as you would expect from a Toyota Group Company, it is a great value proposition to the informed light truck buyer. “The medium and heavy duty sectors also remained an area of strength for the Hino brand in the first quater, in particular trucks for the freight, waste and construction sectors. NEW TRUCK & BUSES ALL WEIGHTS OVER 3500KG QTR JAN-MAR 2015 MAKE QTR'15 QTR'14 % Change ISUZU 240 192 25.0 HINO 144 157 -8.3 MITSUBISHI FUSO 132 145 -9.0 VOLVO 84 81 3.7 UD TRUCKS 69 52 32.7 SCANIA 61 41 48.8 MERCEDES-BENZ 59 72 -18.1 DAF 58 56 3.6 FIAT 57 48 18.8 MAN 50 84 -40.5 KENWORTH 46 36 27.8 FREIGHTLINER 38 27 40.7 IVECO 29 32 -9.4 MACK 27 10 170.0 FACTORY BUILT 16 10 60.0 RENAULT 11 9 22.2 WESTERN STAR 11 12 -8.3 FORD 9 5 80.0 ALEXANDER DENNIS 7 35 -80.0 FOTON 7 INTERNATIONAL 6 7 -14.3 CATERPILLAR 5 8 -37.5 HYUNDAI 4 2 100.0 HIGER 3 1 200.0 VOLKSWAGEN 3 10 -70.0 CHEVROLET 2 2 0.0 DENNIS EAGLE 2 GROVE 2 LIEBHERR 2 2 0.0 YUTONG 2 DODGE 1 GMC 1 KING LONG 1 PETERBILT 1 TEREX 1 FOTON 7 -100.0 JAC 2 -100.0 GROVE 1 -100.0 KATO 1 -100.0 TOTAL 1191 1147 3.8 % of Market 20.2 12.1 11.1 7.1 5.8 5.1 5.0 4.9 4.8 4.2 3.9 3.2 2.4 2.3 1.3 0.9 0.9 0.8 0.6 0.6 0.5 0.4 0.3 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 100.0 Roberts says he believes that the market in the second quarter will continue along at a similar rate as the first, with the ever increasing freight task and positive business outlook. “A lot of work on tenders is currently being undertaken by corporate companies in readiness for the next financial year, Hino is looking to be a large part of those new tender releases and build on the momentum of last year. “The strength of the NZ dollar is helping importers, however that does create an issue for the export sector. New Zealand’s economy is experiencing a very buoyant period and we would anticipate this continuing into the second quarter of 2015. NEW BUSES OVER 3500KG QTR JAN-MAR 2015 MAKE QTR'15 QTR'14 % Change FACTORY BUILT 15 3 400.0 SCANIA 15 8 87.5 MITSUBISHI FUSO 14 13 7.7 ISUZU 11 6 83.3 MAN 8 24 -66.7 ALEXANDER DENNIS 7 35 -80.0 MERCEDES-BENZ 7 14 -50.0 HIGER 3 1 200.0 YUTONG 2 FIAT 1 IVECO 1 KING LONG 1 UD TRUCKS 1 VOLVO 1 1 0.0 HINO 1 -100.0 VOLKSWAGEN 1 -100.0 TOTAL 87 107 -18.7 % of Market 17.2 17.2 16.1 12.6 9.2 8.0 8.0 3.4 2.3 1.1 1.1 1.1 1.1 1.1 0.0 0.0 100.0 NEW TRACTOR MAKES QTR JAN-MAR 2015 MAKE QTR'15 QTR'14 % Change JOHN DEERE 106 164 -35.4 NEW HOLLAND 59 66 -10.6 TRACTOR 31 18 72.2 MASSEY FERGUSON 27 19 42.1 CASE 24 16 50.0 CASE IH 22 28 -21.4 DEUTZ-FAHR 22 28 -21.4 KUBOTA 22 26 -15.4 CLAAS 18 16 12.5 FENDT 9 21 -57.1 SAME 5 1 400.0 AG.MACH. 3 #DIV/0! MCCORMICK 3 2 50.0 GOLDONI 2 2 0.0 JCB 2 4 -50.0 LANDINI 2 2 0.0 MERLO 2 1 100.0 VALMET 2 ABI 1 DAEWOO 1 DELTA 1 HUSQVARNA 1 INTERNATIONAL 1 ISEKI 1 1 0.0 KAWASAKI 1 1 0.0 OAKLAND 1 SHIBAURA 1 FACTORY BUILT 1 -100.0 FERRARI 1 -100.0 FORD 1 -100.0 MAHINDRA 1 -100.0 MANITOU 1 -100.0 NISSAN 1 -100.0 NUFFIELD 1 -100.0 TORO 1 -100.0 TOTAL 370 424 -12.7 % of Market 28.6 15.9 8.4 7.3 6.5 5.9 5.9 5.9 4.9 2.4 1.4 0.8 0.8 0.5 0.5 0.5 0.5 0.5 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 DIESELTALK QUARTERLY REPORT | APRIL 2015 | 25 PEOPLETALK STATSTALK If you’re looking to purchase a new truck or equipment talk to UDC Used trucks, and tractors up but buses down F or the month of March registrations of used imported trucks over 3500kg saw an increase of 32% year on year from 93 vehicles to 122. Used light commercials under 3500kg also had a healthy 27% year on year increase up from 617 registrations in March 2014 to 785 registrations in March 2015. Used imported tractors saw an increase in registra- tions from 79 units in March 2014 to 101 units in March 2015 an increase of more than 27%. Light trucks from 3500kg to 9000kg continue to be the greatest volume of used imported registrations with 97 in March 2014 a 24% increase year on year. Used medium trucks (9001 to 23,000kg) saw 11 registrations, an 83% increase over the previous period, USED HEAVY TRUCKS OVER 23,001KG – MARCH 2015 MAKE KENWORTH HINO ISUZU LIEBHERR OTHER TOTAL MAR'15 5 2 2 1 5 15 MAR'14 % Change % of Market 33.3 4 -50.0 13.3 3 -33.3 13.3 6.7 4 25.0 33.3 11 36.4 100.0 USED MEDIUM TRUCKS 9001-23,000KG – MARCH 2015 MAKE HINO ISUZU NISSAN OTHER TOTAL MAR'15 5 2 2 2 11 MAR'14 % Change % of Market 1 1 400.0 100.0 4 6 -50.0 83.3 45.5 18.2 18.2 18.2 100.0 USED LIGHT TRUCKS 3500-9000KG – MARCH 2015 MAKE TOYOTA HINO ISUZU MITSUBISHI NISSAN MAZDA OTHER TOTAL TOTAL MAR'15 MAR'14 38 26 26 14 7 3 6 120 97 25 7 22 7 13 1 10 85 78 % Change 52.0 271.4 18.2 100.0 -46.2 200.0 -40.0 41.2 24.4 and used heavy trucks (over 23,000kg) recorded 15 registrations for March 2015 which was a 36% increase over the previous corresponding period. Used heavy trucks have seen a 35% increase in registrations over the previous January to March period in 2014, with 27 trucks as opposed to 20, while medium trucks had a smaller increase from 109 units to 112 registrations for a 2.8% increase, but light trucks saw the biggest quarterly increase from 247 registrations in the first USED TRUCK MAKES ALL WEIGHTS OVER 3500KG – MARCH 2015 MAKE TOYOTA HINO ISUZU MITSUBISHI NISSAN KENWORTH MAZDA OTHER TOTAL OTHER TOTAL 31.7 21.7 21.7 11.7 5.8 2.5 5.0 100.0 100.0 TOYOTA NISSAN MAZDA ISUZU HINO MITSUBISHI FORD HOLDEN CHEVROLET FIAT OTHER TOTAL Your first choice in truck & equipment finance Ph 0800 500 832 or visit www.udc.co.nz UDC Finance Limited lending criteria applies. 26 | DIESELTALK QUARTERLY REPORT | APRIL 2015 MAR'15 MAR'14 % Change 38 26 46.2 33 13 153.8 30 26 15.4 15 8 87.5 9 15 -40.0 5 3 1 200.0 16 19 -15.8 149 108 38.0 15 15 0.0 122 93 31.2 % of Market 25.5 22.1 20.1 10.1 6.0 3.4 2.0 10.7 100.0 12.3 100.0 USED LIGHT COMMERCIAL MAKES UNDER 3500KG – MARCH 2015 MAKE % of Market quarter of 2014 to 306 in the same period this year. Used tractor registrations were up 6.8% for the first quarter from 222 to 237 but used buses saw a drop of 28% from 127 registrations in the period last year to 92 units registered for the period this year. The total market for light and heavy commercials increased from 1836 registrations in the first quarter of 2014 to 2132 for the same period this year, an increase of more than 16%. MAR'15 MAR'14 395 147 44 35 33 30 22 18 12 8 41 785 302 142 25 38 13 18 24 9 14 2 30 617 % Change % of Market 30.8 3.5 76.0 -7.9 153.8 66.7 -8.3 100.0 -14.3 300.0 36.7 27.2 50.3 18.7 5.6 4.5 4.2 3.8 2.8 2.3 1.5 1.0 5.2 100.0 PEOPLETALK STATSTALK Shine your rims T he time consuming, and back-breaking challenge of cleaning and polishing truck wheels has an answer with the newly acquired Rim Reshine machine from Cleanco. It’s an expensive option to remove wheel rims for cleaning and polishing which results in longer down times because of the need to refit and re-tension lug nuts. The Rim Reshine is designed for the job, and Cleanco says it can be adapted to all wheel configurations and applications including trucks from USA, Europe or Japan, or trailers built in Rotorua. The first machine is now operational in at Cleanco in Onehunga, Auckland providing an add on service at its facility in 331 Neilsen Street or the machine is also available as a mobile service to call on fleets for fast and effective coverage of multiple rigs in one visit. It says that chrome plating also dulls with time and corrodes if left too long, because dirt will etch its way under coatings. Wheel cleaning takes USED HEAVY TRUCKS OVER 23,001KG QTR JAN-MAR 2015 MAKE KENWORTH HINO VOLVO ISUZU MACK GROVE LIEBHERR MERCEDES-BENZ MITSUBISHI NISSAN DIESEL SCANIA FACTORY BUILT KATO TADANO TOTAL QTR'15 QTR'14 % Change 10 4 6 -33.3 3 4 -25.0 2 3 -33.3 2 1 1 1 0.0 1 2 -50.0 1 1 1 1 0.0 1 -100.0 1 -100.0 1 -100.0 27 20 35.0 % of Market 37.0 14.8 11.1 7.4 7.4 3.7 3.7 3.7 3.7 3.7 3.7 0.0 0.0 0.0 100.0 USED TRACTOR REGISTRATIONS – MARCH 2015 MAKE MAR'15 MAR'14 % Change MASSEY FERGUSON JOHN DEERE INTERNATIONAL CASE FORD DEUTZ-FAHR FIAT NEW HOLLAND TRACTOR CASE IH TOTAL 35 13 11 7 4 3 3 3 3 19 101 14 11 2 2 2 5 2 3 10 28 79 150.0 18.2 450.0 250.0 100.0 -40.0 50.0 0.0 -70.0 -32.1 27.8 % of Market 34.7 12.9 10.9 6.9 4.0 3.0 3.0 3.0 3.0 18.8 100.0 USED BUSES REGISTRATIONS – MARCH 2015 MAKE MAR'15 MAR'14 FIAT MAN OTHER TOTAL 1 1 1 3 6 6 % MARKET CHANGE 33.3 33.3 -83.3 33.3 -50.0 100.0 around four minutes after set up, and is effective as the cleaning shifts dirt, un- like high-pressure sprays that only lift the loose stuff on the surface. USED MEDIUM TRUCKS 9001-23,000KG QTR JAN-MAR 2015 MAKE HINO ISUZU NISSAN DAF CARAVAN FACTORY BUILT FORD FRANNA GMC HOLIDAY HOME MACK MITSUBISHI VOLVO MAN IVECO MERCEDES-BENZ SCANIA TEREX TOTAL QTR'15 QTR'14 % Change 10 3 233.3 4 4 0.0 4 2 1 100.0 1 1 1 0.0 1 1 1 1 1 1 1 3 -66.7 12 -100.0 2 -100.0 1 -100.0 1 -100.0 1 -100.0 112 109 2.8 % of Market 34.5 13.8 13.8 6.9 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 3.4 0.0 0.0 0.0 0.0 0.0 100.0 USED LIGHT TRUCKS 3500-9000KG QTR JAN-MAR 2015 MAKE TOYOTA ISUZU HINO MITSUBISHI NISSAN MAZDA FIAT DAF IVECO MERCEDES-BENZ MITSUBISHI FUSO PEUGEOT CHEVROLET DODGE FACTORY BUILT FORD GMC LEYLAND DAIHATSU DAIMLER TOTAL QTR'15 QTR'14 % Change 98 74 32.4 62 61 1.6 50 20 150.0 34 16 112.5 31 33 -6.1 8 10 -20.0 7 7 0.0 2 2 2 7 -71.4 2 3 -33.3 2 1 100.0 1 8 -87.5 1 1 1 4 -75.0 1 1 0.0 1 1 -100.0 1 -100.0 306 247 23.9 % of Market 32.0 20.3 16.3 11.1 10.1 2.6 2.3 0.7 0.7 0.7 0.7 0.7 0.3 0.3 0.3 0.3 0.3 0.3 0.0 0.0 100.0 DIESELTALK QUARTERLY REPORT | APRIL 2015 | 27 PEOPLETALK STATSTALK Reaping the benefits of being a local manufacturer W USED BUSES OVER 3500KG QTR JAN-MAR 2015 % MAKE QTR'15 QTR'14 % of Market CHANGE TOYOTA 4 3 33.3 36.4 MITSUBISHI 2 3 -33.3 18.2 FIAT 1 9.1 ISUZU 1 1 0.0 9.1 MAN 1 2 -50.0 9.1 MITSUBISHI FUSO 1 9.1 NISSAN DIESEL 1 9.1 NISSAN 5 -100.0 0.0 FORD 3 -100.0 0.0 ALEXANDER DENNIS 2 -100.0 0.0 DENNIS 2 -100.0 0.0 HINO 1 -100.0 0.0 TOTAL 11 22 -50.0 100.0 CHRYSLER 1 -100.0 0.0 CUSTOMBUILT 1 -100.0 0.0 MCW 1 -100.0 0.0 MERCEDES-BENZ 1 -100.0 0.0 MITSUBISHI FUSO 1 -100.0 0.0 TOTAL 92 127 -27.6 100.0 USED TRUCK MAKES ALL WEIGHTS OVER 3500KG QTR JAN-MAR 2015 MAKE QTR'15 QTR'14 % Change TOYOTA 102 77 32.5 ISUZU 69 68 1.5 HINO 64 30 113.3 MITSUBISHI 38 19 100.0 NISSAN 35 38 -7.9 KENWORTH 10 FIAT 8 7 14.3 MAZDA 8 10 -20.0 DAF 4 1 300.0 VOLVO 4 7 -42.9 MACK 3 MERCEDES-BENZ 3 10 -70.0 MITSUBISHI FUSO 3 3 0.0 FACTORY BUILT 2 2 0.0 FORD 2 7 -71.4 GMC 2 1 100.0 IVECO 2 2 0.0 NISSAN DIESEL 2 PEUGEOT 2 1 100.0 CARAVAN 1 CHEVROLET 1 8 -87.5 DODGE 1 FRANNA 1 GROVE 1 HOLIDAY HOME 1 LEYLAND 1 LIEBHERR 1 1 0.0 MAN 1 14 -92.9 SCANIA 1 2 -50.0 ALEXANDER DENNIS 2 -100.0 DENNIS 2 -100.0 DAIHATSU 1 -100.0 DAIMLER 1 -100.0 ISUZU 1 -100.0 KATO 1 -100.0 TADANO 1 -100.0 TEREX 1 -100.0 TOTAL 373 318 17.3 28 | DIESELTALK QUARTERLY REPORT | APRIL 2015 % of Market 27.3 18.5 17.2 10.2 9.4 2.7 2.1 2.1 1.1 1.1 0.8 0.8 0.8 0.5 0.5 0.5 0.5 0.5 0.5 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.3 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 anganui-based Ali Arc industries Limited launched a brand new website in March to give a more comprehensive overview of the aluminium products it manufactures in New Zealand for the local transport industry. A visit to www.aliarc. co.nz will provide information on the companies specialist products which includes aluminium truck bumpers, truck cab guards, as well as aluminium bull bars, and nudge bars for light commercial vehicles. Some recent product developments include low line bull bar for the Scania R620 and a shroud for the Hino 700 Series US04, which incorporates the factory grill. As a result of the considerable interest generated from the market regarding this refinement; a shroud will also be developed for the Euro V Continued on page 29 USED TRACTOR MAKES QTR JAN-MAR 2015 MAKE QTR'15 QTR'14 % Change MASSEY FERGUSON 58 47 23.4 JOHN DEERE 34 34 0.0 NEW HOLLAND 23 18 27.8 INTERNATIONAL 16 7 128.6 CASE 15 9 66.7 TRACTOR 10 17 -41.2 DEUTZ-FAHR 8 12 -33.3 FIAT 8 4 100.0 FORD 8 10 -20.0 JCB 8 2 300.0 DAVID BROWN 5 10 -50.0 SAME 5 5 0.0 CASE IH 4 4 0.0 FENDT 3 3 0.0 FORDSON 3 4 -25.0 ISEKI 3 4 -25.0 MCCORMICK 3 2 50.0 KUBOTA 2 10 -80.0 LANDINI 2 6 -66.7 NUFFIELD 2 1 100.0 POLARIS 2 TOYOTA 2 BEDFORD 1 BMC 1 CATERPILLAR 1 FARMALL 1 2 -50.0 FERGUSON 1 FOTON 1 KATO 1 MANITOU 1 MERLO 1 MITSUBISHI 1 RENAULT 1 TYM 1 ZETOR 1 1 0.0 CHAMBERLAIN 3 -100.0 RENAULT 2 -100.0 CLAAS 1 -100.0 GMC 1 -100.0 LEYLAND 1 -100.0 NISSAN 1 -100.0 SHIBAURA 1 -100.0 TOTAL 237 222 6.8 % of Market 24.5 14.3 9.7 6.8 6.3 4.2 3.4 3.4 3.4 3.4 2.1 2.1 1.7 1.3 1.3 1.3 1.3 0.8 0.8 0.8 0.8 0.8 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 PEOPLETALK STATSTALK Continued from page 28 Hino says Ali Arc. Another recent development is a heavy duty bumper for the Isuzu CYH/ CYJ/CYZ 400 Euro IV models as well as a bull bar for the Kenworth K200. Developments happening in the near future will include a tandard bumper for the Scania R620 and a heavy duty bumper for the Isuzu Euro IV 530 says Ali Arc. “The last 12 months have been unprecedented in terms of sales volume for our company,” says Ali Arc Industries general manager Haig Elgar. NEW COMMERCIAL MAKES QTR JAN-MAR 2015 MAKE QTR'15 QTR'14 % Change TOYOTA 1933 1717 12.6 FORD 1596 1337 19.4 HOLDEN 802 532 50.8 NISSAN 800 833 -4.0 MITSUBISHI 658 570 15.4 ISUZU 624 486 28.4 VOLKSWAGEN 388 321 20.9 MAZDA 319 302 5.6 SSANGYONG 212 211 0.5 HYUNDAI 208 227 -8.4 GREAT WALL 155 242 -36.0 HINO 144 157 -8.3 FIAT 139 78 78.2 FOTON 134 80 67.5 MITSUBISHI FUSO 132 145 -9.0 LDV 113 91 24.2 MERCEDES-BENZ 110 117 -6.0 VOLVO 84 81 3.7 UD TRUCKS 69 52 32.7 SCANIA 61 41 48.8 DAF 58 56 3.6 MAHINDRA 55 39 41.0 MAN 50 84 -40.5 KENWORTH 46 36 27.8 LAND ROVER 40 21 90.5 FREIGHTLINER 38 27 40.7 SUZUKI 31 16 93.8 IVECO 29 32 -9.4 MACK 27 10 170.0 FACTORY BUILT 16 11 45.5 RENAULT 16 10 60.0 KIA 11 8 37.5 WESTERN STAR 11 12 -8.3 PEUGEOT 10 4 150.0 ALEXANDER DENNIS 7 35 -80.0 INTERNATIONAL 6 7 -14.3 CATERPILLAR 5 8 -37.5 CHEVROLET 3 2 50.0 HIGER 3 1 200.0 DENNIS EAGLE 2 GROVE 2 1 100.0 LIEBHERR 2 2 0.0 TATA 2 YUTONG 2 JAC 2 -100.0 DODGE 1 GMC 1 KING LONG 1 PETERBILT 1 TEREX 1 KATO 1 -100.0 TOTAL 9158 8045 13.8 % of Market 21.1 17.4 8.8 8.7 7.2 6.8 4.2 3.5 2.3 2.3 1.7 1.6 1.5 1.5 1.4 1.2 1.2 0.9 0.8 0.7 0.6 0.6 0.5 0.5 0.4 0.4 0.3 0.3 0.3 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 “Our products often outlive the vehicle they have beeninstalled on. We know of numerous occasions where an Ali Arc bumper or bull bar has been transferred from one truck to another, ” he says. USED COMMERCIALS QTR JAN-MAR 2015 MAKE TOYOTA NISSAN MAZDA ISUZU MITSUBISHI HINO FORD CHEVROLET HOLDEN FIAT FORD VOLKSWAGEN GMC DODGE KENWORTH SUZUKI MERCEDES-BENZ RENAULT DAF LAND ROVER PEUGEOT VAUXHALL VOLVO IVECO MACK MITSUBISHI FUSO CITROEN DAIHATSU FACTORY BUILT GREAT WALL HONDA NISSAN DIESEL BMW CADILLAC CARAVAN FRANNA GROVE HOLIDAY HOME HYUNDAI LEYLAND LIEBHERR MAN SCANIA SSANGYONG ALEXANDER DENNIS DENNIS AM GENERAL DAIMLER INTERNATIONAL KATO MERCURY TADANO TEREX TOTAL QTR'15 QTR'14 % Change 1066 900 18.4 409 389 5.1 121 72 68.1 85 106 -19.8 72 47 53.2 64 30 113.3 63 82 -23.2 39 42 -7.1 35 31 12.9 29 20 45.0 22 17 8 112.5 16 11 45.5 10 5 100.0 10 8 6 33.3 7 25 -72.0 6 6 0.0 4 1 300.0 4 4 0.0 4 1 300.0 4 4 0.0 4 7 -42.9 3 2 50.0 3 3 3 0.0 2 1 100.0 2 1 100.0 2 2 0.0 2 2 2 1 1 1 0.0 1 1 1 1 1 1 0.0 1 1 1 0.0 1 14 -92.9 1 2 -50.0 1 2 -100.0 2 -100.0 1 -100.0 1 -100.0 1 -100.0 1 -100.0 1 -100.0 1 -100.0 1 -100.0 2132 1836 16.1 % of Market 50.0 19.2 5.7 4.0 3.4 3.0 3.0 1.8 1.6 1.4 1.0 0.8 0.8 0.5 0.5 0.4 0.3 0.3 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 100.0 DIESELTALK QUARTERLY REPORT | APRIL 2015 | 29 NEWSTALK Ignore the health and safety law changes at your peril DIESELtalk editor Robert Barry spoke to Navman Wireless health and safety expert Chris L’Ecluse on the forthcoming changes in legislation and how they affect the transport industry and, particularly, the mobile workplace commonly known as a heavy truck or light commercial vehicle. C hris L’Ecluse doesn’t mince his words when he says that in a developed country such as New Zealand, driving is the most inherently hazardous task with the greatest risk exposure, and when people use vehicles such as heavy trucks inappropriately causing harm or death, the resulting road trauma affects everyone. “The majority of organisations understand the scepticism over changing the health and safety laws, but it's a perfect opportunity for people to understand the changes and how these will affect transport operators and drivers, as well as other employees and company directors,” says L’Ecluse. “People will need to understand the difference between mitigation and control under the new regime, and that everyone in the transport and logistics supply chain has a duty of care and a role to play in every journey that is made from despatch to delivery and return,” he says. “From a statutory perspective, under the new health and safety regime, every person in the supply chain from despatch person, to the driver, the forklift operator, transport manager, company director, and even the inwards goods receiver, will have their hand held to the prosecution fire in respect of duty of care.” “While we don’t want to scare people, we do want to educate them about their responsibility and roles to play under the new health and safety law which is currently being processed through the New Zealand house of representatives,” says L’Ecluse. “What the new law in New Zealand will set out to do, is very similiar to the current Australian health and safety law where the onus is placed upon every- body in the supply chain doing everything practicable to mitigate risk. “For example a truck driver can still fall foul of the law even if all practicable steps have been taken by his or her employer and colleagues to mitigate his or her risky behaviour that has resulted in an incident,” says L’Ecluse. “It's not good enough to just identify a high risk person behind the wheel, you as manager, colleague or company must consider what steps you have taken to mitigate the risk and control further incidents of speeding, damage to vehicles, and infringements. You need to demonstrate that you have offered training and retraining to the offender, and as a company you can no longer hide behind the corporate banner, because corporate entities will also be considered liable for risk management of their employees and fined if they are found to be foul of the law,” he says. “You also need to know where your truck drivers and vehicles are located at all times.” Challenging and changing driver behaviour will be a big part of the new regime and L’Ecluse says that unrealistic organisation expectations as well as decades of mistaken belief – as well as unrealistic expectations and operating procedures – are all part and parcel of this. “Some drivers do have a deep rooted belief that they can control their trucks at beyond legal speeds, and some are almost criminally negligent in the way they operate trucks leaving zero margin for error on the road. It is decades of mistaken belief for some that we as an industry need to step up and challenge.” L’Ecluse quotes a prosecution in Australia where local government 30 | DIESELTALK QUARTERLY REPORT | APRIL 2015 Chris L’Ecluse agency Workcover brought a case against the management and company directors of one transport company in the New South Wales magistrates court - because management had failed to mitigate and address more than 400 infringement notices against its fleet of trucks. He says that individual company directors were also fined because they had allowed the culture of infringements amongst drivers to continue unchecked – they had failed to mitigate and they had failed in their duty of care, and therefore were successfully prosecuted in the magistrates court. Another NSW transport company was fined for allowing drivers to use retired trailers which were put back on the road without being made properly roadworthy and fit for purpose intended, and a brake failure occurred with the loss of life of several other road users. It is precisely this sort of behaviour that the new legislation will root out says L’Ecluse. He says the vast majority of transport operators are safe and law abiding. It is his opinion it is the rogue operators, such as those mentioned above, that need to be weeded out of the industry. “We need to send a clear message to those rogue operators: change your behaviour or get out and leave the transport industry for good,” he says. NEWSTALK Freight customers looking to their providers for transport emissions reductions T he Sustainable Business Council (SBC) did a freight survey in late 2014 with a number of its members to find out not only what a customer wanted from their freight company but also to find out what initiatives were already being taken by customers and providers to reduce their carbon footprint and improve sustainable practice. SBC executive director Penny Nelson told DIESELtalk that the results of the 2014 freight survey will be presented to members at a workshop on April 29, but it is clear that reducing transport emissions is a top priority for SBC members, and they are looking seriously at what can be done to make this happen. “Having a look at the issue really made sense to us because there were emissions reductions to be made as well as the ability to address health and safety issues. By doing the freight survey we got a good feel for which members were doing what, and how many members were already working with their freight partners on sustainability,” she says. Nelson says that some large businesses within the SBC membership are serious about reducing their freight emissions footprint, and those freight companies who come on board with this strategy will be well positioned for future growth. Making the most of every freight movement has a big impact on freight emissions, and Nelson says that this is front of mind. “What was pleasantly surprising was the fact that many of our SBC members already had quite a few initiatives being put into place, and there were already some great relationships with freight providers focused on being more sustainable,” says Nelson. “There’s some great stuff being done already, but we still want to become more proactive, so we intend to scale up some of the initiatives at the freight workshop on Penny Nelson April 29, and see if there can be greater collaboration between providers and members to do even more.” Aligning sustainability values to freight operations Dunedin City Council owned company City Forests Ltd called for tenders to supply log cartage services in late 2014. The winning bidder mentioned its involvement in the EECA Heavy Vehicle Fuel Efficiency Programme and City Forests says this particular association strengthened the bidder’s application. “There are a number of aspects of the EECA programme that align with potential benefits to our business as an employer, including environmental, health and safety, lower fuel cost and lower repairs and maintenance,” says City Forests production manager Guy Bonner. “Lower fuel cost allows for a more competitive bid for work in a tender process, but being part of the EECA programme also signalled being committed to continual improvement as a business. “As an employer we like to know the cartage contractor we are using is continually improving the likes of driver ergonomics and driver safety and also continually seeking to uphold professional standards in the community environment,” he says. Working with a freight partner Toyota New Zealand isn’t just committed to using sustainable technology in its vehicles, it is also committed to sustainable business practices throughout its organisation. Chief executive officer Alistair Davis stated in Toyota’s latest sustainability report: “Our way forward will be to better measure our carbon footprint, including freight, and set targets to reduce emissions across the board.” Toyota New Zealand says it tracks and measures the emissions associated with the freight and distribution of both the vehicles and service parts it sells, as well as the packaging they use on the distribution of service parts. Each part is assigned an emission value based on its size, and the distance it travels. As emissions from these areas are closely tied to sales, the company calculates both the total emissions and per unit emissions every month. These results are reported monthly to Toyota Japan, and reviewed annually by external auditors and certified under the CEMARS programme. Freight operators find a competitive edge in reducing carbon emissions for their customers. Visit www.eecabusiness.govt.nz/heavy-vehicles to find out more. EEC3278_DT_6 DIESELTALK QUARTERLY REPORT | APRIL 2015 | 31 14Q-051-NZ mccorkell Navman Wireless is a unique GPS fleet management solution that gives you visibility of your vehicles so you are in the passenger seat even when you are not. Keep your drivers safe and comply with Health and Safety regulations. navmanwireless.co.nz TRUCKTALK Delivering on a brother’s dream One man’s dream become another’s driving force in the challenging business of buying, selling, re-building and servicing, at first used trucks, then importing used trucks from Japan, then moving the business into a new truck franchise model and becoming the largest dealer for that brand in NZ. DIESELtalk Editor Robert Barry spoke to CAL>Isuzu managing director Ashok Parbhu on the journey so far. M ore than 30 years ago Raman Parbhu started Commercial Autos Limited as a one-man band buying and selling trucks on his parents' residential property in Avalon Drive, Hamilton. Today the company is known as CAL>Isuzu with more than 100 staff located in Auckland, Hamilton and Tauranga, and it is the master Isuzu truck dealer covering a territory from Northland down to South Waikato and across the Kaimai Ranges, to the Bay of Plenty. CAL>Isuzu managing director Ashok Parbhu first joined his older brother Raman’s venture in the late 1980s as the two men moved the business from dealing in second and third hand NZ new vehicles, into selling used imported trucks from Japan and establishing the landmark CAL dealership on the Te Rapa straight near Hamilton. The unexpected death of a brother and skilled business partner would make many rethink their strategy and possibly slow the pace of growth and expansion, but when Raman passed away in 1997, his younger brother ploughed on, stick- ing to the long term goal that they had shared for many years. Raman had a dream of one day owning a premier truck dealership in New Zealand, and it would be fair to say that his younger brother Ashok more than delivered on that, with the help of some very talented and experienced staff behind him. Parbhu secured the first Isuzu Truck franchise in 2008, buying the waikato PMA from Holden dealer Ebbetts. Commercial Autos Limited became CAL>Isuzu, and by 2010 there were more than 30 staff working in the business, some of whom had spent 10 to 15 years working with him. “We knew that importing used trucks was not going to last as a longterm business proposition because there was no opportunity to have a parts and service department, so changing over to a new truck franchise business model gave us the opportunity to have one, and add more strings to our bow,” says Parbhu. “The truck sector comes with some particular difficulties with high unit prices, at times low margins, and ongoing frustrations with importing. “We then knew that we needed more capacity hence we purchased TCL Isuzu in 2012, which provided more scale, more service, and better purchasing power to enable our customers to stay on the road which is where they need to be,” he says. Over the years the CAL>Isuzu premises in Te Rapa have seen a number of refurbishments and renovations as the company has grown and increased its range of services to the transport industry. There was a full scale overhaul of the entire front of house operation in 2011 resulting in a truck dealership constructed from vast expanses of aluminium, glass and polished concrete that stood on par with the best of European passenger brands, yet there was still an acknowledgement to the company’s humble origins with the new staff room being aptly named the Parbhu Brothers lounge. Last year saw a massive rebuild of the Te Rapa manufacturing site and Continued on page 34 DIESELTALK QUARTERLY REPORT | APRIL 2015 | 33 TRUCKTALK Continued from page 33 the completion of additional facilities which take up the same dimensions as a full sized rugby union pitch! CAL>Isuzu now offers service, parts, truck body building, auto electrical, painting, fabrication, and WOF all on one site, and there is the potential that COF - B will also become available too. “We had a stated aim to provide a true one-stopshop for the heavy vehicle marketplace, and we now can touch the truck at every point of the journey from initial inquiry to financing the sale, to building and painting the truck, to engineering and auto electrical services, to pre-delivery inspection and ongoing service and maintenance,” says Parbhu. “Without a shadow of a doubt this is what we now provide to all of our customers, in world class facilities with technology and staff that are second to none,” he says. Around 10% of CAL>Isuzu annual sales see customer trucks receive specialist inhouse engineering services on the premises. Parbhu comments that there is a 4-month lead time for in house coach building services, and other truck body builders are experiencing lead times of six months and more and most are at full capacity. “We are currently using general engineers to do profile cutting, plasma, and fabrication work off site, and then assembling the body and ancillaries to the truck on site here at Te Rapa, purely in an effort to speed up the process and get the trucks out to the customers as quickly as possible,” he says. In 2014 CAL>Isuzu also sold more than 400 new Ashok Parbhu trucks accounting for 45 to 50% of new truck sales in the Isuzu dealer network. In addition to the service workshops in Te Rapa, Auckland, and Tauranga, CAL>Isuzu also has another five authorised service centres covering its entire PMA with after hours coverage as well. “We are committed to ensuring that our customers can expect more,” says Parbhu. “This includes outstanding levels of service delivery, timeliness, attention to detail, honesty, integrity and passion for every job that comes through our doors.” As it head onwards through 2015, Parbhu outlines further plans involving finding suitable land for new dealerships in Auckland and Tauranga. It is very clear that for Parbhu and the team at CAL>ISUZU, the journey is far from over. New Wheel Polisher DEAL!! Stand out with CleanCo Wheel Polisher Special introductory offer THE BEST AT WHAT WE DO! 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