FERNTREE GULLY NISSAN WINS GLOBAL AWARD P.04 - P.03 P.06 RENAULT MOVES DISTRIBUTION TO
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THE AUSTRALIAN VEHICLE DEALER’S NEWS SOURCE
FEBRUARY 2021 .COM.AU
RENAULT MOVES
DISTRIBUTION TO
ATECO GROUP
FERNTREE GULLY
P.03
DEALERS NOT HAPPY WITH
NISSAN WINS
RENAULT AUSTRALIA
SAYS AADA GLOBAL AWARD
P.06 P.04
1 Australia JANUARY 2021
EDITORIALTALK
MORE CHANGE
INEVITABLE IN 2021 ROBERT BARRY
EDITOR AUTOTALK
Hello everyone, particularly buyers with a quality trade-in.
The improved new car sales figure in January was Demand for late model used vehicles remains high
welcome news to an industry that’s weathered more and residuals for many three-year old vehicles are
than a few storms in the last 36 months. holding their own.
However, the fallout of 36 months of declining new According to wholesale vehicle sales data received
vehicle sales will have an impact on the Australian from Datium Insights, as of February 8, the three-year
industry, already we have seen logistics specialist current week resale value of the Toyota Hiace, Hilux,
Autocare Services go into voluntary liquidation as it and LandCruiser Prado was 81.8%, 82.5% and 85.2%
prepares to restructure itself to operate in the new respectively.
normal. The Toyota Kluger commands a three-year current
This will be the first of many companies who will resale value of 68.5%, while the Nissan Qashqai and
“right size” themselves if they have not yet already the Mitsubishi Outlander both command a 36-month
done so in the wake of the pandemic. residual of 63.6%.
Renault Australia’s controversial move to hand over To put that into perspective the three-year current
distribution of its vehicles to Sydney-based Ateco resale value of the Holden Commodore was 58% and
Group is another example of a brand trying to become the Ford Mondeo 41%, which shows that even in the
more efficient and more profitable. Groupe Renault second-hand market Australians prefer to buy used
says Australia is one of several countries where it is SUVs and Utes rather than sedans and station wagons.
moving to an independent distributor as part of its In related news, a new classified website for second-
global restructure to become leaner, meaner, and hand vehicles, Cartopia.com.au has been launched in
greener. Australia by Credit One.
However, as can be expected the AADA and its The online classified advertising market for
membership were rightly concerned and not amused vehicles is a competitive sector targeting new and
that the decision was made by Groupe Renault used dealers. I believe it is a good thing for the
without any dialogue with current Renault franchise automotive industry to see a new entrant giving
dealerships. the established operators some healthy competition
AADA says once again the lack of any regulation with and giving both buyers and sellers more choice and
teeth governing the relationship between franchise more options.
dealerships and multinational car manufacturers has That’s all from me,
led to this situation. It cites the demise of Holden,
and the current restructure of the Honda Australia
network and the move by Mercedes-Benz to an
agency model as being the result of local legislation
Best regards
not having enough protection mechanisms for local
vehicle dealers.
Certainly 2021 is going to have its challenges in terms Robert Barry
of demand for new vehicles and the supply thereof, EDITOR AUTOTALK
but it’s not all doom and gloom for dealers and
2 Australia JANUARY 2021
NEWSTALK
ATECO GROUP
CONFIRMED AS
NEW AUSTRALIAN
RENAULT NEVILLE CHRICHTON
DISTRIBUTOR
G
roupe Renault has announced New Zealand and South Africa. It
the appointment of an is also the distributor of LDV and
independent distributor to RAM Trucks in Australia, and in New
operate the Renault network in Zealand it distributes the Alfa-Romeo,
Australia. Chrysler, Fiat, Jeep, and RAM Truck
Australia joins several overseas brands. ANOUK POELMANN
markets moving to distributorships In Australia the Ateco Group has
as part of Groupe Renault’s global previously been the official distributor
reorganisation. for Audi (1998 to 1991), Alfa-Romeo
Sydney-based RVDA, a subsidiary of (1998-2012), Chery (2011-2018), Citroen
the Balverona Group owned by Neville (1993-2013), Great Wall (2009-2016), and by 1977 his company European
Crichton, will operate the Renault Ferrari (2005-2013), Foton (2013- Motor Distributors (EMD) was the
brand in Australia from April 1 this 2017), Kia (2000-2006), Ssangyong official importer of Audi, Porsche and
year. (2012-2018), Suzuki (1985-2000), and Volkswagen.
Volkswagen (1998-1991). Since then, the Giltrap Group has also
The existing Renault dealer network
will remain unchanged say the Distribution of most of those former become the distributor of SEAT, Skoda,
companies in a joint media statement. Ateco managed brands in Australia Bentley, and Lamborghini. It also
have been subsequently taken over looks after Aston Martin and McLaren.
“This announcement by Groupe
by the parent manufacturer. The Renault, Isuzu Ute and Hyundai
Renault secures Australia’s future
as an important market,” Renault However, in a role reversal Groupe brands are also distributed in New
Australia managing director Anouk Renault is the first parent company to Zealand by the notoriously media shy
Poelmann says. withdraw from Australian distribution Spencer Family through its company
and contract the wholesale franchise Auto Drive Holdings.
“After recording a strong sales result
operation to the Ateco Group. Retail car magnate Rick Armstrong
in a difficult year, Renault is on track
to cement its position as a premium And Group Renault is not the first is the most recent entrant into the
mainstream brand in Australia,” French brand to follow this strategy. distribution game in New Zealand. In
Poelmann says Before the Stellantis merger, PSA 2017 he became the official importer
Groupe (Peugeot, Citroen, DS) looked of Peugeot and Citroen vehicles
“We have a strong track record in
to move to independent distribution through his company Auto Distributors
successfully building and managing
in smaller less profitable markets. NZ, after Malaysian-based Sime Darby
world-renowned automotive brands
For example, it sold its Scandinavian Motors relinquished the distribution
locally,” Neville Chrichton says.
operations to a private importer. of the French brands in Australia and
“This announcement enables the New Zealand.
New Zealand is a textbook case as to
Renault brand to stay in Australia
how independent distributors operate
and allow its customers to continue
successfully in a smaller market and
enjoying the same high levels of
why Groupe Renault has gone down
service they have come to expect
this road in Australia.
from one of the world’s leading
automotive brands,” he says. The Giltrap Group founder Sir Colin
Giltrap became the official New
The Ateco Group is the official
Zealand importer of NSU in 1971,
distributor of Maserati in Australia,
JANUARY 2021 Australia 3
DEALERTALK
FERNTREE GULLY NISSAN CELEBRATES
GLOBAL METROPOLITAN DEALER AWARD
M
etropolitan dealership Ferntree
Gully Nissan is celebrating
its latest success in the 2020
Nissan Global Awards following the
presentation of the accolade by Nissan
Australia managing director, Stephen
Lester.
Ferntree Gully Nissan had previously
enjoyed success in the Nissan
Elite Dealer Excellence Awards in
Australia for FY19 after performing
exceptionally across a broad range
of criteria including sales, servicing, (L TO R) IAN MOREILLON – DIRECTOR OF SALES, NISSAN AUSTRALIA / WAYNE STEVENSON – DEALER
parts, finance, training and overall PRINCIPAL, FERNTREE GULLY NISSAN / STEPHEN LESTER – MANAGING DIRECTOR, NISSAN AUSTRALIA /
customer experience and retention. MARK ROGALA – DISTRICT SALES MANAGER, SOUTHERN REGION, NISSAN AUSTRALIA / STUART WEBSTER –
GENERAL MANAGER, SOUTHERN REGION, NISSAN AUSTRALIA
However, the dealership’s performance
has gone from strength-to-strength
to gain international recognition victory as the Metropolitan winner multiple successes of Ferntree Gully
alongside 131 other Nissan dealerships further highlights the team’s Nissan continue to raise the bar for our
worldwide. experience and capability as a retail network here in Australia,” Lester says.
Part of the Ferntree Gully Automotive outlet on the world stage. “Their recognition not just in our local
group led by CEO Craig Pearce, this While the award winners were Dealer Excellence Awards, but also on
feat has been repeated a number of confirmed much earlier in 2020, a global scale in the Nissan Global
times by Ferntree Gully Nissan, with the COVID-19 prevented a physical Awards, underlines the continued
team earning the Nissan Global Award presentation and a formal recognition professionalism of Craig Pearce, Wayne
(Metropolitan title) for multiple years in of the team’s achievement was only Stevenson and the rest of the team. It
a row prior to this achievement. possible this month. is great to finally be able to formally
With the Nissan Global Awards divided Delivered by Nissan Australia acknowledge the achievements of the
into three categories to acknowledge managing director Stephen Lester, Ferntree Gully Nissan team.”
the variety of Australian dealership and director of sales Ian Moreillon, Ferntree Gully Nissan was joined as
types - Metropolitan, Provincial and the award - along with a range of 2020 Nissan Global Award winners
Rural - the award is a true “best of the other Elite Dealer Recognition Program by Motors Nissan Launceston
best” accolade for the brand’s dealer awards for the high-performing (Launceston, Tasmania) and Great
network worldwide. outlet – was presented to dealer Lakes Nissan (Tuncurry, New South
Subjected to a scoring methodology principal Wayne Stevenson in January. Wales) as Provincial and Rural Winners
focused on sales success and the “We pride ourselves on having an respectively.
delivery of an exceptional customer exceptional dealer network, and the
experience, Ferntree Gully Nissan’s
4 Australia JANUARY 2021
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JANUARY 2021 Australia 5
DEALERTALK
RENAULT DEALERS IN SHOCK AT
DISTRIBUTION ANNOUNCEMENT
R
enault dealers are shocked by Australian family businesses, but sadly
the brand's announcement that it comes as no surprise considering
it has appointed an independent some of the behaviour we have seen
distributor without any prior notice or from the likes of General Motors, Honda
consultation given says the Australian and Mercedes.
Automotive Dealers Association (AADA). “Renault Australia employs about 50
Groupe Renault says the decision to people in Australia yet here they are
relinquish its Australian business and making decisions that affect a dealer
appoint independent distributor Ateco network which collectively represents
Group to represent the brand is part tens of millions of dollars in facilities
of the brand's global restructure. and employs hundreds of Australians.
“It is very disappointing that Renault It’s appalling that they don’t respect
dealers heard about this announcement their dealers enough to bother
in the media, AADA chief executive consulting with them and notifying
them of their plans.
JAMES VOORTMAN
James Voortman says.
“Dealers we have spoken to are in “In a true partnership there should be
shock at this announcement and maximum transparency when major this power imbalance, but we are
cannot understand how this can changes are being considered, but already receiving reports from dealers
happen when they have existing too often dealers are kept in the dark that manufacturers are refusing to
contractual agreements with Renault around important issues which are incorporate these principles into new
that have years to run.” crucial to their financial viability. dealer agreements.
“These dealers have contractual “The Senate Committee inquiring “After the demonstrated market
agreements with Renault Australia and into the relationship between car failures that have occurred over the
have invested huge sums of money manufacturers and car dealers in past 12 months and will continue
to represent the brand and service Australia is holding its final day of to occur, it is clearer than ever
Renault customers across Australia. For hearings. This inquiry has heard from that Australia needs to follow the
dealers to be treated in this way, with a number of dealers about the power lead of other overseas nations and
absolutely no prior notice, is disgraceful imbalance that exists between dealers adopt strong mandatory automotive
and is yet another example of the and the manufacturers to which they franchising protections for dealers,”
contempt that some manufacturers are franchised. Voortman says.
have for their Dealers. “Unfortunately, the Government
“This is no way for a large believes a voluntary set of principles
multinational firm to treat small it released late last year will address
6 Australia JANUARY 2021
DEALERTALK
REVISITING LIFE ON THE FAIRWAY
Since his last appearance in the January 2019 issue of Autotalk, Fairway Motor Traders buyer Chris
Christofi shares his experience of trading through the COVID-19 lockdown in Melbourne.
F
airway Motor Traders is a family- heavily modified are also holding their
owned business based in Port value well, “ he says.
Melbourne which has been trading “European classics such as Citroen or
wholesale second-hand vehicles to car Rovers are not as popular. We sold
dealerships for more than two decades. a very good looking Rover through
According to Chris Christofi, Fairway Greys Online and although it was an
Motor Traders is positioned as a interesting car it didn’t sell for as much
service to the more than 60 dealers it as we expected.
buys from and sells to. Three generations of the Christofi
“If they’re losing money from their CHRIS CHRISTOFI family still work in the business, Chris,
wholesale we can help, and it’s not just his father Steve, and his grandfather
for cars, we do bikes, light commercials, Christofi says that mainstream brands Chris who comes in every day.
and fleets,” Christofi says. such as Toyota, Ford, Hyundai and Kia “It all began with my grandfather who
Trading during the restrictions of the are maintaining good residual values in started the business as a workshop
COVID-19 lockdown in Melbourne meant the current used car market. with a car yard beside it, then my dad,
working more remotely and a lot He says light commercials such as the having been the sole distributor for
more reliance on using a smartphone Toyota Hilux and the Ford Ranger have Lada Australia until they folded, got
according to Christofi. even stronger residual values in the into the business,” Christofi says.
“We were able to buy and sell vehicles second hand market, as these tool of Fairway Motor Traders continues
to and from country dealers, there was trade vehicles are in high demand from to thrive thanks to the network of
a lot of click and collect business, and the trades and other users. customers which Chris and his father
we did a lot more trading by phone “There is no doubt that JobKeeper Steve have built up and the company’s
rather than in person,” Christofi says. stimulated the economy and people low-margin/high-turnover business
“We were able to do enough trading have been able to save for the purchase model.
to get us through. Turnover last year of big ticket items, there are people “We’ve always had competitors but
was about 30% down on 2019 and looking to buy a second hand car to there are not many who operate as we
supply of used cars has been slow, replace an even older vehicle. do. For example we offer no lot fees
and while prices do fluctuate a little, “The next few months will be because we want meat on the bone of
in general used car prices are staying interesting to see how the market every car our customers are buying,”
strong. settles. I think sales in June and July Christofi says.
“One consequence of the market is will be the true barometer of where “My grandfather loves to work, and
that late model low mileage cars are the vehicle market settles. he still loves fixing cars if he can do
commanding close to new car money. “The interest in classic cars has also it. We’ll then get the vehicles back to
I’ve heard a story that the owner exploded, as people are looking to our shop, give them a tidy up, and
of a two-year old LandCruiser with spend their discretionary income. then in the afternoons we’re usually
30,000km on the clock, took it back to “Classic Ford and Holden cars have sending those wholesale cars off to
the dealer and his trade in price was become very desirable, and HSV and their new owners.
the same as what he’d paid for the car. FPV models which have not been
JANUARY 2021 Australia 7
NEWSTALK
ANOTHER RECORD
YEAR FINISH FOR USED-
VEHICLE PRICES BY MICHAEL BRISSON
A
ustralian used-vehicle prices While popular new utes remained for a private ride in lieu of public
experienced a year unlike any hard to obtain, the used-market transport having already purchased a
before. Pushed by the COVID-19 supply remained depleted. Lease vehicle. Others may be anticipating
pandemic, consumers rushed into contracts were pushed out due to the return to public transport as plans
the market at the same time supply lockdowns, social distancing, and for vaccine distribution are rolled out.
was restricted by slow production and lack of miles driven, limiting the With an end of the pandemic now
reduced trade-ins. According to the used supply of younger vehicles. in sight, it does not make sense to
Datium Insights-Moody’s Analytics These roadblocks caused transactions purchase a car you probably would
Price Index, wholesale used-vehicle through Pickles, the largest auto not use until next winter.
prices were up by 35% from where auction house in Australia, to end the Used-vehicle prices are expected to
they ended 2019. This incredible jump year down 20% compared with 2019. have peaked across Australia in the
in prices is made more improbable Additionally, new vehicle sales fourth quarter of 2020.
because it happened as the nation were low coming into 2020, Wholesale prices are expected to
endured numerous lockdown orders, making the availability of younger decrease by a seasonally adjusted
devastating job losses, and the first vehicles harder to come by, a trend 3% in the first quarter of 2021 and an
recession in a generation. exacerbated by the plunging sales in additional 1% in the second quarter.
Used-vehicle prices in 2020 threw the early months of the lockdown. This will mark the first quarter-over-
out relationships with traditional Depressed new-vehicle sales quarter drop in prices in the past two
economic indicators such as the experienced a bounce-back to end years outside of the lockdown-driven
unemployment rate and were driven 2020 in response to the astronomical drop in the second quarter of 2020.
by untraditional supply and de- used-vehicle valuations. New-vehicle Risks to the forecast are weighted
mand factors. Pandemic-induced sales experienced the best month towards the downside. A comparable
changes to tastes and preferences in nearly two years in November. rise in used-vehicle prices has never
caused people to shun public and Inspite of many households struggling been experienced in the Australian
shared transportation such as air- economically, new car and ute sales market. A lack of precedent is driving
planes and public transport. Apple are expected to remain elevated as considerable uncertainty about how
mobility data show public transport supply returns and prices remain prices will wind down: slow and
routes searched remain down 25% attractive compared with record prices steady or steep and sudden.
from where they were towards the on the used market.
start of 2020. If unneeded newly purchased
The jump in used-vehicle prices vehicles come back to the market
At the same time demand was has not merely been an Australian at the same time extended lease
heightened, supply was being phenomenon. Across the globe, the contracts expire, and new-vehicle
squeezed. New vehicle production, prices of used vehicles rose as a result supply is no longer constrained,
which was shut down for weeks, has of the idiosyncrasies of the COVID-19 there will be significant downward
reopened in fits and starts. This has global recession. In spite of disparities pressure on used-vehicle prices.
caused many popular vehicles and in cultures and policy responses, In this case, the slow and steady
trims to remain at arm’s length from used-vehicle valuations ended the forecast will underestimate the
potential buyers, sending them to tumultuous year up in Europe and roughness of the road back to
the used market. The most popular North America. used-vehicle prices in normal.
vehicles across Australia remain utes/ the US ended the year up more than
light trucks. This has caused the 13%, the highest year-over-year gain
segment of larger vehicles to rise on record.
faster than the market in general.
Still, seasonally adjusted prices have
Prices of light trucks/SUVs/utes have cooled in the US over the past couple
risen at a 46% clip year over year, of months and the same trajectory is
more than 40% faster than the expected in the Australian market.
decreasingly desirable passenger car Demand for an additional vehicle has
segment. likely dried up, with those looking
8 Australia JANUARY 2021
NEWSTALK
KIA CELEBRATES 20-YEARS
AT THE AUSSIE OPEN
K
ia celebrates its 20th anniversary the relationship and shared values that
as the major partner of the exist between Kia and the Australian
Australian Open in 2021. Open.
It marked the occasion with the reveal “The growth and evolution that both Melbourne Park precinct this year to
of Kia’s new logo at the Australian Kia and the Australian Open have bring its new brand evolution to life
Open vehicle handover ceremony held undergone over the past 20 years is for not only tennis-goers but the wider
at Grand Slam Oval – which features extraordinary. At a time when we have broadcast and digital audience.
Kia Australia’s first electric vehicle, been faced with such unprecedented
A first of its kind LED digital cube
the Niro. challenges, we are entering our next
display will be the focus for Kia’s
Current world tennis players Dylan phase of growth and innovation as a
Australian Open activation, the
Alcott and Nick Kyrgios uncovered the brand,” he says.
build consists of a 12-metre wide by
new Kia logo as part of the ceremony, Australian Open tournament director 2.6-metre-tall screen and displays
which saw Kia hand over the keys to Craig Tiley says the grand slam is proud Kia’s new EV vehicles for the first time
the Australian Open for its 130-strong of its long-standing relationship with in Australia.
fleet of cars. Kia.
Titled ‘Kia-Morphia’, the LED
Since 2002, Kia’s fleet of courtesy “Kia has helped drive the success of the digital cube installation is set to
vehicles has to date accumulated Australian Open over the past 20 years, give audiences an immersive, 3D
over six million kilometres and tens and we’re grateful for their on-going anamorphic illusion created to
of thousands of journeys during the commitment to the tournament,” Tiley represent ‘Movement that Inspires’.
Australian Open. says.
Kia Australia general manager of
The Kia Australian Open 2021 fleet The launch of the new Kia marketing Dean Norbiato says the shift
comprises a mix of Sorento and Carnival logo celebrates its vision and in focus presents a unique opportunity
models. For the first time yet, the Kia transformation for the future. The for Kia to secure more engagement and
AO fleet also includes a collection of Kia new logo unveils a new brand interaction from tennis fans and the
Niro Hybrid electric vehicles. direction and slogan ‘Movement that public across the Australian Open.
Kia Australia Chief Executive Officer Inspires.’
James Cho says the milestone 20th Kia has adapted its on-ground
anniversary represents the strength of presence at Grand Slam Oval in the
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JANUARY 2021 Australia 9
DEALERTALK
FOUR DIGITAL
ADVERTISING CHANNELS
YOUR DEALERSHIP MUST
USE IN 2021
I
n 2020, Internet activity reached pay-per-click (PPC) basis – no paying
an all-time high in Australia per lead here.
during plenty of downtime at When should you use Google Ads?
home due to obvious reasons. For
• Jump to the top of Google searches
dealerships and consumers, this also
meant that car buying moved to a • Increase website traffic and direct
much more digital experience. Now enquiries BY BRADLEY AYRES
while things are gradually getting GOOGLE DISPLAY ADS SENIOR DIGITAL STRATEGIST
back to normal, the consumer DEALER SOLUTIONS | DIGIPURPLE
Think about your commute to work
behaviour has changed forever and and all the billboards and outdoor ads
digital is at the core every car buyers’ you see. How many do you remember? relevant customers who are either
journey. One, maybe two? For those couple we looking for cars on Google or are
Whether you’ve been utilising remember, there’s hundreds that we retargeted to on Facebook. The best
digital advertising for a while or are just don’t take notice of. With all the thing about Automated Inventory
just starting to include it into your content that we’re subjected to, to Ads is that rather than send them to
dealership’s marketing strategy, grab the attention, and hold it, you third-party websites where you then
you’ll know it’s an often complex need to reach your target audience pay for the lead, traffic is sent directly
and confusing world to navigate. with a relevant message. Traditional to the vehicle details page on your
With all the different digital channels advertising channels have limitations website.
on offer, it’s difficult to figure out in their targeting but that’s where When should you use Automated
where to invest your advertising digital excels. Inventory Advertising?
dollars. So, to help you on your With Google Display Ads, reaching • Increase eyeballs on your inventory
journey, here’s our picks of the top your target market flips the concept
• Reduce your cost-per-lead
four digital advertising channels to of traditional advertising on its head.
boost sales for your dealership in 2021! Google Display Ads allow you to • Download our free guide
GOOGLE ADS advertise on websites that are relevant As I have run out of space to explain
to your dealership, reach customers the fourth channel, I invite you to
Let’s set the scene; a woman is in the
based on their personal interests, or download this Free Guide where
market for a new Mazda CX-5 and is
target their age, gender and location. you will learn more about the three
ready to book a test drive at her local
You can even reach people who are channels that I mentioned here and
dealership, which just so happens to
currently looking to buy a car or have discover channel #4, which when
be your dealership. She goes to Google
visited your website previously. Plus, using it together with the other three
to search for “2018 Mazda CX-5” in
similar to Google Ads you can pay- channels, create a winning strategy
her area and sees an ad for another
per-click or cost-per-impression for your dealership, allowing you to
Mazda dealership in the area and
(when people see your ads). move forward and gain that valuable
books a test drive. If you had been
When should you use Google Display competitive advantage.
using Google Ads, this could have
been easily avoided. Ads? DOWNLOAD YOUR FREE GUIDE HERE
• Build brand awareness cost- or send me a message at Bradley.
Google Ads (formally Google AdWords)
effectively Ayres@dealersolutions.com.au for
is one of the most popular forms of
an informal chat on how Digital
digital advertising, so I’m sure you • Re-engage with customers
Advertising can help you achieve your
would have heard about it but here’s AUTOMATED INVENTORY 2021 dealership goals.
a quick overview just in case. Google ADVERTISING
Ads uses targeted keywords or specific
Automated Inventory Ads are
searches that trigger your ads on
dynamically created ads that
Google, the world’s biggest search
are generated directly from your
engine. These ads will look almost
dealership’s actual inventory. These
identical to regular Google listings.
ads can run across both Facebook
However they’re a quick way to get
carousels or Google Ads and reach
yourself to the top of the page on a
10 Australia JANUARY 2021NEWSTALK
MEANINGFUL INDUSTRY-LED
CHANGE NEEDED IN POLICY WORK
FAIR DATA ACCESS FOR ALL for manufacturers and their dealer
The recent release of draft legislation network.
to mandate access to vehicle service REGISTRATION RE-THINK
and repair information in Australia When motorists receive their vehicle
is unprecedented, and an exciting registration bill, they’ll probably find
opportunity for the industry. they’re charged the same as the person
But there’s work to be done. down the road. That’s great, some
might think. But what if one owner’s BY GEOFF GWILYM
Some see this issue as a dealer
vehicle is lighter, more fuel efficient, or CEO, VICTORIAN AUTOMOBILE CHAMBER OF
versus independent repairer battle. COMMERCE
It’s not. This is an issue for vehicle emits less pollution than ‘that’ vehicle
manufacturers. It is they who must down the road. Would they still feel the
same? meaning government incentives should
provide technical data to all sectors of
come with warning stickers on them.
the automotive industry, not dealers. I’m all for equality, but in Victoria at
least, the registration authorities view Incentive programmes are often
Currently, vehicle service and repair
a motorcycle as a motorcycle, a car as designed for good use – to move
information is often not made available
a car, and a truck as a truck. That’s people from aging technologies to
by vehicle manufacturers to aftermarket
simply not fair. Some motorcycles use newer ones or to use less energy, for
repairers. This causes consumer rights
less petrol than others, some cars emit example. However, seldom is much
and fair-trading issues and lessens
less pollution than others, and some thought given to the long-term effects
genuine choice for motorists.
vehicles weigh much less than others. on business once the programme ends.
It’s only right that motorists have safe,
One-size-fits-all approaches are History has shown many dangers
well maintained vehicles and that
usually organised for the benefit associated with incentivising relatively
repair businesses have the information
of government departments, not stable markets. For every opportunistic
required to deliver on that expectation.
the motorists who pay their wages. pop-up business that profits and
Accounting for 54% of automotive moves on, there are legitimate
So, it’s easy to imagine bureaucrats
businesses, the repair and maintenance operators left ‘in’ the market that find
developing pricing based on basic
sector is very important to Australia’s themselves on the downside of the
categories – motorcycle, car, truck.
economy – employing 385,500 people programme.
Surely, we can be more sophisticated
and contributing approximately $37
than that. Take the pink batts scandal from a few
billion in GDP per annum. But to
Here’s a thought – why not base years ago. Legitimate operators were
continue providing quality service
vehicle registration on other, more there before the Rudd government
to motorists it’s crucial equal access
meaningful metrics? Like a vehicle’s incentive programme was announced
to accurate repair and maintenance
fuel consumption (and the type of fuel and they remained in the aftermath.
information is available.
it uses, including alternative power But life was never the same.
The Federal Government must also Meanwhile, opportunistic operators ran
sources such as electricity), its carbon
recognise that a ‘mandated scheme’ with the money, possibly to pop-up
emissions, and its weight (because
without penalties for non-compliance elsewhere at the next announcement
large SUVs wear roads down much more
will not work in the real world. of yet another government funded
quickly than a compact sedan).
A genuine scheme would mean programme.
Scooters and motorcycles cause less
independent repairers have access Incentives can work if carefully
road congestion and ease parking
to the same technical information managed. However, care needs to
conditions, as do smaller cars and
made available to authorised be taken in assessing the potential
commercials. And digging up less fossil
dealers and manufacturer-preferred elimination of local businesses pitted
fuel and emitting less pollution into
repairer networks. It would include against incentivised service providers
the atmosphere isn’t a bad idea either.
environmental, safety and security- who have moved onto the next honey
related data – ensuring motorists have A sliding registration scheme could see
pot.
access to competitive, convenient, the sticker price on some vehicles come
down. That’s good for dealers and The Victorian Government’s cash-
safety-focused service and repair
consumers. for-clunkers scheme is the latest in
information for the life of their motor
a long line of incentive programmes
vehicle. It will also incentivise vehicle owners
that need clear thought and industry
Manufacturers invest heavily in creating to ‘go green’ and think about the
consultation before the fine print is
their products and industry believes necessity of driving solo to work in
released later this year.
they should be allowed to reap the oversized vehicles. Why wouldn’t
Australia’s roads authorities want that? I support any efforts to get motorists
rewards of this investment. Industry
out of older vehicles and into safer new
acknowledges such information INCENTIVISE ME!
ones, but don’t leave legitimate car
should be made available at a fair It doesn’t matter whether it’s pink dealers and vehicle recycling businesses
and reasonable rate – which would batts, LPG conversions, or electric behind at the expense of pop-up or
mean an additional income stream car subsidies – many of these well- backyard operators.
JANUARY 2021 Australia 11NEWSTALK
THERE’S A NEW KID ON THE CLASSIFIEDS BLOCK
C
artopia officially launched its recognised many of the frustrations strategy, involving online search and
new vehicle sales site on January for dealerships promoting their stock social media advertising, as well as
7, 2021. This is really an exciting through traditional car buying websites. sponsorships and radio advertising.
milestone says the Credit One Group Through Cartopia, the goal has been to This strategy will produce rapid growth
which created the new website that create an alternative and change the in Cartopia usership, meaning more
was in development for several months way to pay and to advertise stock. Australians seeing dealer listings on the
before going live. For a limited time dealerships can website.
The new Cartopia website features currently have stock advertised on the So what’s the pricing difference?
new and used vehicles, access to low Cartopia website FREE of charge.
There will be a very affordable monthly
rate finance, car news and reviews This allows dealers to trial the site and subscription fee and rather than a pay
and an easy to navigate search reach a nationwide audience of car per lead model, there will be an agreed
function. buyers without incurring the usual fees fee for every successful sale originated
Since being established in 1999, Credit and costs associated with car buying via the Cartopia platform.
One has developed strong relationships websites.
To get on board as a Cartopia dealer –
with dealerships throughout Australia After only being live for just over a contact your local Credit One rep on
and helped thousands of car buyers month, the site has exceeded all 1300 696 392 (MyNewCar) or email:
secure finance on their vehicle expectations with a high number info@cartopia.com.au.
purchases. of unique buyer visits to Cartopia.
The new website can be viewed at
So why create another classified Foundation dealers reporting strong
cartopia.com.au.
vehicle sales site? enquiry and successful sales.
After working closely with dealerships Over the coming months, Cartopia
over many years, Credit One has will be pursuing an aggressive growth
FCAI WELCOMES FUTURE FUELS STRATEGY
ANNOUNCEMENT
T
he Federal Chamber of Automotive than $100 billion every year in research
Industries (FCAI) has welcomed and development to design and build
the announcement on Future the low and zero-emission vehicles of
Fuels Strategy by Minister for Energy the future.
and Emissions Reduction Angus Taylor. “This research continues to present us
It says it shows the Government with a vast range of options – from
desire to let the market determine highly efficient internal combustion
the uptake of new technology while engines, through hybrids to battery or
supporting its growth through plug-in electric and hydrogen fuel cell.
investment in infrastructure and the The Government is wise to acknowledge
removal of barriers that discourage that the future directions include this
vehicle technology development and range of technologies.
adoption. “Governments should choose targets
FCAI chief executive Tony Weber says – not technology. The market tells us
TONY WEBER
that continued development of zero that these advanced drive technologies
and low emission vehicles by global are accepted in Australia if they are fit “We encourage the Federal Government
manufacturers coupled with the for purpose and affordable,” Weber to work cooperatively with State
market demand led by private and says. and Territory Governments to ensure
business buyers at affordable prices He also says the discussion paper all Australians can have confidence
and operating costs will be the drivers commentary about the role of in consistent development of
towards zero carbon emissions. Government in the development of infrastructure and policy settings that
“The FCAI will consider the critical supporting infrastructure was support the adoption of new zero and
Government’s position and respond a positive message to the market. low emission technology.
formally to the discussion process,” “Governments have a critical role to “This is an important time for unity,
Weber says. play in the development and roll-out clarity, planning and delivery across
“It is very significant that the Minister of appropriate infrastructure to support the entire country rather than
is placing the focus on a mix of the growth in market demand for new poorly considered tax grabs by State
technologies rather than taxation technologies. Access to world-class Governments on electric and hydrogen
to lead the transition. Globally, our fuel quality remains a missing link in vehicles,” Weber says.
member companies are taking a lead this story.
in emissions reduction and invest more
12 Australia JANUARY 2021Sell more cars.
Reach more
buyers.
The Cartopia website has officially launched! Developed by the Credit One Group, Cartopia
is Australia’s newest car buying experience.
With thousands of Australian car buyers visiting the website every week, dealerships around
the country are excited to be selling more cars on Cartopia.
Take advantage of this unique and exciting opportunity and benefit from lower fees and
greater visibility and our only pay on success model. Call us or enquire online to get started
with Cartopia.
www.cartopia.com.au | 1300 273 348
sellmorecars@cartopia.com.au
info@cartopia.com.au
®
JANUARY 2021 Australia 13NEWSTALK
MANAGING MULTIPLE
COMMUNICATION CHANNELS ON
ONE PLATFORM
P
odium is an interaction your reviews, and that they
management platform prioritise reviews above personal
that enables dealerships recommendations, loyalty, and
to personally manage customer traditional marketing.
communications through text and “As an example, a new car buyer is
instant message. From starting looking for a Mazda 3 in a competitive
conversations, to closing deals, taking metro area, and there are 10
payments and asking for Google dealerships nearby selling the exact
reviews, personalised messaging is same car. The buyer pulls out their
the latest revolution in customer phone and Googles ‘Best Mazda dealer
experience. near me.’ The dealership at the top
The platform integrates with of the results with 1500+ reviews and
websites such as CarSales, Facebook a near-perfect star rating is going
and Google to deliver seamless to attract their attention first. If the EDWARD TAPLEY
communication underpinning the reviews are current and mention staff
customer journey from the initial by name, the choice becomes obvious. “By allowing the customer to connect
online touchpoints to the eventual directly with the dealership sales
“Turning eyes online into genuine
showroom visit, all through their team via text message, we eliminate
conversations is the next challenge,
preferred communication channel, the endless games of phone tag,
and third-party chat solutions or
such as text messaging. voicemails and emails that only
chatbots don’t make sense. It’s
provide friction and cause delay.
Podium senior sales executive frustrating for the buyer and creates
Speed in starting a conversation with
Ed Tapley says that the use of challenges for sales teams in restarting
the customer is absolutely critical in
smartphones in consumer searches the conversation through another
improving conversions because if you
has disrupted how consumers find, comms channel.
give your competition time they may
evaluate and interact with their local You would never have a robot be have the conversation first. We know
retailers and particularly new and the first point of contact when that 90% of all text messages are
used vehicle dealers. someone walks into your showroom, read within three minutes of being
More importantly he notes that the and with customers now starting received. It’s the most effective way to
old-fashioned word-of-mouth referral their journey online, why should start the conversation today.
has now been usurped by online your online storefronts be treated
“There is still a big gap between
Google reviews and star ratings, any differently? Podium routes this
how dealerships communicate and
which are so visible when a person is conversation to the buyer’s phone
how buyers prefer to be contacted.
searching for details about a product and text messaging, delivering
Research by J.D. Power shows that
or service. a flexible and personal customer
more than 49% of Generation Y want
“Everyone is looking online for a five experience.
to be contacted by dealerships via
star experience, as well as the very “We’ve got to move beyond text but in reality, dealership uptake
best deal and a trustworthy brand, capturing leads and focus on starting of text is languishing at about 11%, so
but how can they find that and be conversations with the intending there is huge untapped potential for
reassured they are making the right buyer immediately. Podium enables dealers.
decision?” Tapley asks. this through Google, Facebook,
“With today's consumer, text
“Car dealers are realising the Instagram, CarSales, and dealer
messaging is such a powerful tool to
power of positive Google reviews websites.
underpin the customer journey from
and showing up online in front of “We know that the average buyer will first touches online to final sale and
potential buyers. It can be a huge contact two to three dealerships when beyond."
advantage in creating enquiry and they are shopping online for a new car
closing deals. and it’s likely they will purchase from
“We know 84% of Australian the first dealership that responds to
consumers are influenced by their enquiry.
14 Australia JANUARY 2021NEWSTALK
VOLKSWAGEN AND AUDI MERGE
AUSTRALIAN OPERATIONS
A
udi Australia has announced that a market where all auto brands are
it will join its affiliated brands importers, no national sales company
in the national sales company will have the breadth of offering nor
Volkswagen Group Australia (VGA). the sheer product strength of VGA.
The merger is subject to final "From a Fabia city car all the way
approval by the parent companies in to Audi's R8 supercar with every
Germany, and locally by the Foreign passenger car and SUV segment
Investment Review Board. between and a dominant light
It unites Volkswagen, Audi, Volkswagen commercial vehicle arm, Volkswagen
Commercial Vehicles and the VW- Group Australia will be class-leading in
owned Czech brand Skoda in a single all aspects of the automotive market in
PAUL SANSOM
Australian entity, however the dealer which it competes," he says.
networks will operate as per existing Audi Australia managing director Paul
agreements with the brands. Sansom says that the merger would
Volkswagen Group Australia managing have clear benefits both for Audi and
director Michael Bartsch who was VGA.
appointed to the role in 2018 will now "Audi Australia has enjoyed enormous
lead the expanded group. success over the last 15 years and
Audi Australia will continue to be lead the consolidation of its place in the
by managing director Paul Sansom who Volkswagen Group here begins the next
was appointed to the role in 2017. exciting chapter," Sansom says.
Volkswagen Commercial Vehicles "As a prestige brand, Audi has its own
director Ryan Davies will continue distinct identity in VGA and remains
MICHEAL IRMER
in his role which he assumed in the Group's technological spearhead.
January 2019, and the Skoda brand will Vorsprung durch Technik means
continue to be directed by Michael progress through technology and Audi
Irmer as he has done since 2013. is set to continue its rich history of
innovation by taking a leading role in
Audi Australia (established in 1997) future mobility."
and VGA (2001) have previously traded
as separate NSCs. The companies, "Audi will be the brand that leads
which shared functions such as IT VGA's push into electric vehicles,"
and procurement, had for some time Bartsch says
examined other areas for combining "As such, VGA will be positioned most
recourses culminating in the decision advantageously to dominate what will
to merge as per practice in most in time become a common form of
markets where multiple Group brands personal mobility. MICHAEL BARTSCH
are sold. "Eventually each group brand will have
Bartsch says that the combined group separate EV ranges that reflect the Work is advanced on the new VGA
would be a force in the Australian diversity and price positioning of their national headquarters in and around
passenger vehicle market. conventional showrooms. Yet, crucially, Audi's South Dowling Street premises
the brands retain their entirely distinct in inner-Sydney Zetland.
"Unification fortifies the position of
these Group brands," Bartsch says. "In identities and customer sets," he says.
JANUARY 2021 Australia 15NEWSTALK
GM LAUNCHES REWINDING HOLDEN SOCIAL
MEDIA CAMPAIGN
G
eneral Motors has launched a
social media campaign to pay
tribute to the Holden brand and
remind current owners that it continues
to offer parts and service support across
Australia.
Created by the AJF agency, the
Rewinding Roads website combines
the smarts of Google Maps with
the photographic skills of everyday
Australians.
It will remain live for the rest of 2021 as
a gallery for all of Australia to enjoy.
“It was always our intention to
recognise the important contribution
Holden has made in this country,” GM
Australia and New Zealand managing
director Marc Ebolo says.
“This website is a simple way that
Holden family and friends can come
together to celebrate this iconic
Australian brand.
“With Holden continuing to service
vehicles and provide parts to its many
customers in Australia, we wanted
to make sure this didn’t feel like an
ending.
“Just as Holden drivers can keep using
and enjoying their vehicles for years
to come, we hope that this site can
be enjoyed by all Australians, whether
they are uploading their favourite
photos or just browsing the galleries of
Holdens all over the country.
“We’re excited to be launching such Keep your customers happy and keep your dealership or workshop
a tribute to Holden and a partnership running smoothly by using messaging. Podium saves you from
with Google and RMIT,” Ebolo says. constant phone calls and keeps every customer interaction in
“We wanted to create an opportunity one clean inbox.
for all Australians to share their Holden
ownership over the years. And thanks
to the team at Google, who provided
access to their Google Maps platform,
we have made it easy for Aussies to
share their Holdens with Australia,“
AJF founding partner ECD Adam Francis
says.
“We would also like to thank the RMIT
students who are helping AJF with this
project.
“And finally, we’d like to thank all the
talented people at Holden that we’ve
shared a journey with for more than 11
years.
“We will always be appreciative of
the many marketers and dealers with
whom we formed great relationships
with along the way,” Francis says.
Website link: rewindingholden.com.au
Visit try.podium.com/auto to get started
Video link: https://youtu.be/
AecnWyfFqsc
16 Australia JANUARY 2021NEWSTALK
NEW ZEALAND
IMPLEMENTS CLEAN
CAR IMPORT STANDARD
N
ew Zealand prime minister raising concerns that the plan goes too
MICHAEL WOOD
Jacinda Ardern has confirmed a fast.
new average emissions standards “While we believe the fuel economy
for light vehicles which has received standard is necessary, the speed at
mixed reactions from the new and used which we must reach the average target
vehicle industry as well as the New of 105 grams of CO2 per km is the most
Zealand Automobile Association and aggressive and severe in the world,”
lobby group Drive Electric. chief executive David Crawford says.
The move is likely to have as bigger “No other country has ever had to face
impact on the availability of vehicles a 40% rate of reduction in five years
for New Zealand buyers as in the late that we now must meet. We urge the
1980s when the government allowed Government to amend the target date
used vehicles (grey imports) into the to 2030.” DAVID CRAWFORD
country mainly from Japan, Singapore,
“Contrary to the views of Government,
and the UK.
the 2025 target date does not allow
The ‘clean car import standard’, will time for model development, vehicle
require new and used vehicle importers sourcing arrangements and does not
to move towards a target of average recognise that for many distributors
emissions of 102grams for cars and in New Zealand their model choice is
SUVs, and 132g for Utes, vans and larger tied to the Australian market. With no
4X4 vehicles by 2025. The overall target similar policy required in Australia, our
is 105g. market, which represents just 0.018%
Currently the average vehicle in New of new vehicle production in any one
Zealand has CO2 emissions of around year, is too small for manufactures to
171 grams per kilometre (g/km). In NZ develop models just for us.” DAVID VINSEN
cars and SUVs alone average 161 g/km, “We also urge the rules to be the
compared to 105 g/km in Europe. In same for both new and used imported
2017, the most efficient vehicle models vehicles. Giving used imported vehicles
on the market had, on average, 21% softer penalties will lead to an increase
higher emissions than their counterpart in older, less safe vehicles entering New
models in the United Kingdom. Zealand.”
New Zealand is only one of two VIRTUE SIGNALLING SAYS USED
countries in the OECD without a vehicle IMPORT BODY
CO2 standard, the other nation is
The body for used vehicle importers
Russia (Australia’s vehicle industry has
in New Zealand, VIA, says the vehicle
implemented its own standard). The NEERAJ LALA
emissions standard as ‘nothing short of
first target of 105g set for 2025 was
virtue signalling.
already achieved by Japan in 2014 and
by Europe in 2020. On average, New Chief executive David Vinsen says the
Zealanders pay 65% more in annual strategies biggest impact to the local
vehicle fuel costs than people in the market will be consumers paying more
European Union, even though Europe’s for the same cars they drive now.
petrol prices are higher. “The biggest change is New Zealander’s
Recording will begin in 2022, with will end up paying more for the same
charges for missing the target from vehicles they drive now,” he says. “If
2023. Used vehicle importers will they were really serious about cutting
have lower penalties than new car carbon they would put a carbon tax on
importers. hydrocarbon fuels, but they are not.”
MARK STOCKDALE
“The Import Standard will prevent up to “There is an international trend
3 million tonnes of emissions by 2040, towards these sorts of changes because
mean more climate-friendly cars are transport is seen as being relatively low “We are yet to see the detail of the
available, and will give families average hanging fruit.” draft legislation, but there is no doubt
lifetime fuel savings of nearly $7,000 Vinsen has yet to see specific details this will materially affect the shape of
per vehicle,” Transport minister Michael of what the final regulation will look New Zealand’s fleet over time.”
Wood says. like, but notes VIA has been part of “Our role is to try to assist government
Although supportive, the Motor the development of the plan. It will in making sure it is effective and able
Industry Association of New Zealand is continue to work with the government to be implemented.”
despite its concerns.
to page 18...
JANUARY 2021 Australia 17NEWSTALK
...from page 17
He acknowledges the import trade has “We understand the intentions and motor industry to devise an
access to the hybrid-friendly Japanese behind it and our members want action plan to reduce transport
market, but notes there is domestic and to see more low-emissions vehicles emissions and also improve the safety
other international market demand for available here but the risk is that this of the fleet. In addition to emissions
those vehicles. target could simply result in higher standards and biofuels, this could also
“There is a limited number of electric prices for new cars that still don’t investigate scrappage schemes and
vehicles and low emissions vehicles,” meet the emissions standard. That other incentives such as depreciation
he says. “There is an opportunity there could even result in people holding allowances and fringe benefit taxes.
for hybrids, but there is demand for onto their older, higher emissions car TOYOTA NEW ZEALAND WELCOMES
those as well.” for longer.” EMISSIONS POLICY
On the topic of why used importers A move that is welcomed by the AA Toyota New Zealand (TNZ) chief
have – as AutoTalk and the MIA is the announcement to investigate executive Neeraj Lala says the brand
understand it – a lower penalty rate, a biofuels mandate that could make is committed to reducing the carbon
Vinsen says that is because new vehicle fuels sold at the pump become lower- footprint across the full life of its
distributors have better access to emitting. product lines, including manufacturing,
electric and low emissions stock. “The emissions standards focus on distribution and tail pipe emissions.
EV LOBBY GROUP CALLS FOR MORE the approximately 300,000 vehicles “To transition to a resilient, zero-
entering the fleet every year, but we carbon economy we need a range of
Mark Gilbert, chair of Drive Electric
also need to reduce the emissions from initiatives from both manufacturers
says, “The standards being proposed
the existing fleet of some 4.6 million and government. Toyota is playing
for 2025 have already been met in other
vehicles. Biofuels are one way to do its role to deliver increasingly lower
comparable markets, like the EU and
that, especially second-generation emitting vehicles. The introduction
Japan, and must be achievable here.”
biofuels which are fully compatible of a new Clean Car Import Standard
“The standard is a useful tool in that it with any motor vehicle,” Stockdale is an encouraging move from the
asks importers to look at the portfolio says. Government,” he says.
of vehicles they are importing, which
Stockdale says the AA is disappointed TNZ has a target to reduce tailpipe
should increase low emissions choice
that the revised emissions targets emissions to 152g CO2/km and 178g CO2/
across a range of vehicle types and
developed by an industry working km for Toyota and Lexus respectively by
price points. With more EVs coming into
group in conjunction with the Ministry 2030. It has already achieved the Lexus
New Zealand, this also increases the
of Transport have not been adopted. target (currently 151.4g CO2/km).
second-hand market over time.
“This proposed the same target, “However, to reduce further to 105g per
“That said, such a standard is really
but for 2028, which would give the km is certainly a tough ask. But we are
just a first step towards managing a
car industry enough time to source prepared to work in partnership with
transition away from fossil fuel vehicles
vehicles for the New Zealand market. the Government to achieve a transition
and towards no emissions vehicles.”
“As it is the proposed targets are the to a low carbon vehicle fleet.”
“To meet New Zealand’s legislated
most stringent of any country in the Toyota has been working with the
climate ambitions, to keep warming
world, and the timeframe is just too Motor Industry Association (MIA) for
within 1.5 degrees celsius, our analysis
short.” several months on a lower emitting
shows we need to aim for at least
250,000 EVs on the roads by 2025, and “Everyone who owns a petrol or diesel vehicle standard. Lala says the industry
for this trend to continue through to motor vehicle is already collectively is not ignoring the issue and is working
2030. contributing 8c per litre for a collective co-operatively to meet new global
$420m a year to offset transport standards and develop new low or zero
“Firstly, we should look at announcing
emissions through the ETS. Right now emitting automotive technologies such
a date by which we end the
none of this money is actually being as hybrid, pure electric and hydrogen
importation of fossil fuel vehicles into
targeted at reducing emissions, and fuel cells.
New Zealand, entirely. This has been
the AA thinks it should be. Within Lala supported the stance of the MIA
done in many other markets around
a few years, that fund will rise to which believes the 2025 deadline is
the world, including the United
$800m a year, and this money must too aggressive, is not aligned with
Kingdom.
be used to help establish a viable most countries and not achievable
“Policies that need to be considered second-generation biofuels industry, as decisions on new vehicle products
include incentives, adjustments to and to fund other initiatives to reduce and volumes imported into New
fringe benefit taxes and depreciation, transport emissions and incentivise Zealand are largely made by off-shore
and investment to ensure we are ready the uptake of low-emissions vehicles,” management.
for more at-home charging and public Stockdale says.
charging,” Gilbert says Hybrid sales by Toyota increased from
The AA also supports the development 1636 in 2017 to 12,210 in 2020,
NZ AUTOMOBILE ASSOCIATION and introduction of a feebate scheme leading to a falling emissions profile
QUESTIONS TIMEFRAME which would complement an emissions for the overall Toyota and Lexus
While supportive of the government’s standard. “Other countries have both model range. More hybrid and plug-
move, the NZAA is also concerned an emissions standard and a feebate in hybrid models will be launched in
that the proposed targets may not be scheme, and their experience shows New Zealand this year by Toyota and
possible within the timeframe. that both work to reduce emissions its premium brand, Lexus, including
“The proposed emissions target for from new vehicles entering the fleet,” the first local offering of a pure
2025 is an aspirational target that may Stockdale says. electric car, the Lexus UX 300e.
not be achievable,” NZAA spokesperson The AA also wants a broader fleet
Mark Stockdale says. strategy developed by the government
18 Australia JANUARY 2021You can also read
