Industry Leaders at Loggerheads over ESC - Autofile
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10 June 2010 The voice of the auto industry
Industry Leaders at
Loggerheads over ESC
The respective Associations vehicle fleet one of its priorities, it has the potential to reduce of the New Zealand environment.
representing the new car and and considers ESC to be an deaths and serious injuries Electronic stability control is
used import markets are in sharp important part of this. anywhere up to 60 percent, becoming mandatory for new
disagreement over the suggestion It suggests ESC be made with averages around 30-35 cars in an increasing number of
that electronic stability control mandatory for all new cars entering percent. From the New Zealand countries, including Australia from
(ESC) be made mandatory in used the fleet from 2014, and then all used point of view we believe those 2011. However New Zealand light
imports from 2015. imports the following year in 2015. savings will be even greater, due vehicle fleet constitution is unique
The benefits of making ESC According to Perry Kerr, Chief to our roading network, which with used-imports making up over
compulsory are discussed in the Executive Officer of the Motor is fundamentally a two-lane half the light vehicle market.
Government’s Safer Journeys, Industry Association, there is no highway with no median barrier. Evidence suggests that levels of
the national road safety strategy doubt ESC would reduce accidents You’re going to save cross-overs ESC differ widely between the new
for 2010-2020. While the and fatalities. “ESC is a feature that in terms of losing control, for and the used markets.
Government’s road safety policy is recognized in the car industry example on a corner, which could According to Kerr, levels of
focuses mainly on improving globally as offering significant potentially result in the car hitting ESC in new cars are already high.
drivers and roads, it also makes safety benefits. someone coming the other way, “12 months ago we were at 65-70
improving the safety of the light- “Overseas studies show that even more so we believe in terms percent, we’re probably running
continued on page 6
May Sales Remain Steady
Both new and used passenger last year’s monthly figures. units which is 14 percent on the The used passenger market
car sales achieved good results in The 4,616 new passenger same period 2009. This is now recorded even stronger sales,
May, sales figures show. vehicle registrations in May was slightly ahead of the industry with 7,381 units a 41 percent
And with sales of light a 16 percent improvement on projection – so we are very happy improvement on May last year. Year
commercial vehicles also strong, May 2009. with these results,” says Perry Kerr, to date used passenger sales are at
the industry recorded its 5th “For the first five months new Chief Executive Officer of the Motor 35,823, a 42 percent improvement
consecutive sales increase on car registrations totalled 24,496 Industry Association. on the same period last year.
continued on page 17
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editor’s note
Aging fleet a cause
for concern Editor
Stian Overdahl
Subscriptions
subs@autofile.co.nz
editor@autofile.co.nz Free phone 0508 288 863
021 247 7782 Fax 03 4772758
PO Box 6222,
Advertising Dunedin 9059
Brian McCutcheon
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Free phone 0508 288 863 admin@autofile.co.nz
021 455 775 Free phone 0508 288 863
Fax 03 4772758
Staff Writer & Motorsport PO Box 6222,
Mike Stock Dunedin 9059
mikestock@xtra.co.nz
Electronic stability control The report on the most recent Publishing Company
and vehicle scrapping schemes trial claims such a scheme to be Designer 4 Media Limited
– the two opposite ends of the costly, and without sufficient Adrian Payne PO Box 6222,
light vehicle fleet. benefit. arpayne@gmail.com Dunedin 9059
Questions of standards Yet that claim appears
for vehicles entering the new premature, for only a small Copyright: Published weekly by: 4Media, PO Box 6222, Dunedin 9059
fleet aside, everyone can agree portion of the trial was used to Distributed to all autofile subscribers. All statements made, although based on
information believed to be accurate and reliable, cannot be guaranteed, and no
that the average age of New pay for the scrapped cars, and liability can be accepted for any errors or omissions. Reproduction of autofile in
Zealand’s light fleet is too high. most of the cost came from whole or part, without written permission, whether by xerography or any other
Unfortunately this problem is advertising the trial. means, is strictly forbidden. All rights reserved.
only going to get worse before it Only 20 percent went
gets any better. towards the scrapping incentive,
Data shows that in 2008, with two-thirds of the total cost
one third of the vehicles in the paying for its advertising. These
light fleet had model years of costs seem disproportionate to
between 1995 and 1997. the length of the trial, which was
According to the Ministry only three and a half weeks.
of Transport’s report on the If this were a national
2009 vehicle fleet statistics, incentive, advertising costs
the 1996 year-of-manufacture would not be divided by the
peak in the New Zealand fleet number of cars scrapped in a
is a direct consequence of the
Frontal Impact Standard, which
matter of weeks, but across
several years. Your IT
vendor
had the effect of restricting This would be money spent
used car imports to vehicles on a significant investment in
manufactured during or after safety on our nation’s roads, and
1996 (and some older vehicles
that met the standard).
it would also have favourable
environmental consequences by thinks one
The report notes that as these
mid-1990s vehicles age, there
will be a significant effect on the
removing many of the most-
inefficient light vehicles.
While a heavily subsidized
size fits all?
age of the fleet. ‘Cash for Clunkers’ style scheme Technology Solutions for Industry
The actual effect will depend would not work in the New As New Zealand’s leading developer of specialist automotive business
on future vehicle imports and Zealand environment, if the software systems, we’ll give you the right solution for your operation.
scrappage patterns. Government is serious about Whether you are the smallest workshop or the largest dealership we have
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Ostensibly the two vehicle road safety and reducing someone smaller, larger or just plain different. We’ve been developing
scrapping trials, conducted in emissions it needs to develop a systems for businesses just like yours for over 25 years.
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information about the viability of Stian Overdahl Phone: 09 583 2451 Mobile: 0274 475 514
(formerly Systime) Email: paul.wilkinson@tsinz.co.nz
a vehicle scrapping scheme. Editor
www.autofile.co.nz | 3
news
Officials to Consult with Industry Over
Implementation of Emissions Trading Scheme
Ministry of the Environment stationary energy and liquid report on their full calendar within the provisions of the
(MfE) representatives are fossil fuels, resulting in a rise in year’s activity by 31 March, ETS that all carbon credits
meeting with vehicle importers prices for petrol and electricity. and surrender the appropriate must be surrendered after the
to discuss how the Emission However waste and number of carbon credits by year’s reporting. Importers are
Trading Scheme (ETS) can be synthetic gasses will face an 31 May. While reporting will be hoping the Government will
implemented, says Imported impost from 2013, and this will mandatory in 2012, importers recognize the impracticable
Motor Vehicle Industry include the refrigerant gasses will not have to surrender carbon nature of the ETS, and exempt
Association (IMVIA) chief in vehicle air-conditioning credits until 31 May, 2014, based the synthetic gasses in motor
executive David Vinsen. systems. on their 2013 activity. vehicles from the scheme.
“I’ve put together some While no exact costs are yet It is this payment structure The current consultation
people for them to consult known, and will be dependent that has drawn fire from process concerns the
with, and they’re going to be on the price of carbon when those in the industry, who most appropriate way of
meeting with some of the major any credits are surrendered, say it is impossible to expect implementing the ETS. Possible
players in the import field in the the ballpark figure is between a business to be able to pay options for calculating the
coming days. They’re looking $30 and $50 per used import credits for vehicles imported amount of synthetic gasses
to determine the best way of car. New cars have more in the year previously, and imported include a database
implementing the ETS, if they efficient air-conditioning that any collection must take of vehicle models with the
proceed with it.” systems, and so use less place at the border, when the data, or calculating the average
From July 1 the ETS will synthetic gasses. vehicles enter the country. amount of gasses for a car’s
introduce a carbon levy on Importers will have to However it is prescribed year of production.
The New Zealand Emissions Trading Scheme
Call for submissions on calculating emissions liability and
removals entitlements from synthetic greenhouse gas activities
The Ministry for the Environment is consulting on regulations for calculating synthetic greenhouse gas emissions and
removals for the purposes of determining liabilities and entitlements under the Emissions Trading Scheme (NZ ETS), as
well as thresholds and exemptions in relation to the gases.
Persons who import or manufacture synthetic greenhouse gases and do not meet the criteria for exemption will enter the
NZ ETS with voluntary reporting from January 2011 and be fully included from 2013. Persons who export or destroy
synthetic greenhouse gases may be eligible to join the NZ ETS with voluntary reporting from 1 January 2011 and be fully
included from 2013.
Synthetic greenhouse gases covered by the NZ ETS are hydrofluorocarbons, per fluorocarbons and sulphur hexafluoride.
They have specialist uses in air conditioning and refrigeration systems, aerosols and in electricity transmission.
Submissions close on 23 July 2010 at 5pm.
To find out more and make a submission, visit www.climatechange.govt.nz or call 0800 CLIMATE (0800 254 628).
www.climatechange.govt.nz/ets 0800 CLIMATE (0800 254 628)
4 | www.autofile.co.nz
news
Vehicle Scrapping Trial Not Up to Scratch
A Ministry of Transport report collected during the trial, although been fitted with them when built. per each of the 122 vehicles that
on a vehicle scrappage trial in only 122 of these met the trial’s Around 70% of the imported met the trial criteria was $1,240.
Christchurch and Wellington criteria of being operable, and Japanese vehicles had had their The final breakdown of the trial,
concluded that scrappage schemes holding a Warrant of Fitness, or catalytic converter removed, the total cost of which was $150,361,
do not deliver a satisfactory result being within two months’ of the while the catalytic converters showed that $30,000, or 20%,
for the amount of money spent. WoF expiry. still remaining were found to still was paid out in the form of public
New Zealand’s light vehicle The average age of the be working well. These findings transport passes, while $100,000 was
fleet is one of the oldest in vehicles collected was 20 years, mirrored the results of the 2007 spent on advertising, $18,500 on the
the developed world, with an and the average mileage was Auckland scrappage trial. new Toyota Corolla, and $2,700 was
average age of around 12.9 years 214,500 kilometres. Safety features in the late-age spent on emissions testing.
(December 2009). By comparison, A survey conducted among vehicles were minimal. Only two As the report notes, the trial
the average age of a light vehicle participants discerned some of the 122 vehicles examined were could have continued longer for
in the Australian fleet at the same variation in their views of their fitted with airbags; and only one than the three and a half weeks
time was 9.7 years. vehicles in relation to scrapping. car had ABS braking. with little extra cost. However it
The vehicle scrappage trial was Almost half said that they would Around half of the participants was unable to do so, due to the
designed to encourage and speed have sold the vehicles in the had indicated that they would have terms and conditions of the raffling
up the removal of old vehicles absence of the trial, while a attempted to sell their vehicles had of the Toyota Corolla.
from the fleet. similar amount said they would they not scrapped them. While this In addition to information
The trial ran for three and a have scrapped their cars anyway. removed a number of high-age gleaned about the state of the
half weeks in May 2009, and was Over half believed that their vehicles from the road, the report oldest vehicles in the fleet, the trial
a follow up to a 2007 scrappage vehicle had a value greater than concluded that the results did not concluded that there is a general
trial conducted in Auckland. that offered in the trial (the $250 justify the high cost of the trial. The lack of public awareness about
Scrappers were rewarded with a public transport credit), while 25% total per-vehicle cost across all 349 how to safely dispose of unwanted
$250 public transport credit for believed it would have cost money vehicles was $430, while the cost vehicles, and the cost of doing so.
their region, as well as a chance to scrap the car. Participants in
to win a new Toyota Corolla. The the Wellington region tended to
trial was heavily advertised, and have an inflated view of their car’s
media outlets including The Edge value, while those in Christchurch
radio station ran promotions estimated lower.
publicizing the trial. Another aspect of the trial
Two scrap metal firms, was gathering information about
Wellington Scrap Metals and vehicles in the tail-end of the fleet.
Metalcorp NZ of Christchurch, were Consistent with vehicle age, more
selected to participate in the trial, than 60% of the vehicles collected
both of whom offered guarantees had carburettored engines.
that no part of any vehicles The absence of a catalytic
scrapped in the trial would end up converter was also notied in
back in the fleet. many of the Japan-manufactured
In all, 349 vehicles were vehicles, all of which would have
Trans Future 5 Voyage 41
Osaka 7 June, Nagoya 8 June, Kawasaki 12 June,
Auckland 30 June, Lyttelton 2 July, Wellington 3 July, Nelson 4 July.
Trans Future 6 Voyage 38
IMVIA elects 2010/11 executive Osaka 21 June, Nagoya 22 June, Kawasaki 26 June,
Auckland 15 July, Lyttelton 17 July, Wellington 18 July, Nelson 19 July.
The IMVIA has elected its Lloyd Wilson, Colin Nichols and Trans Future 7 Voyage 38
2010/11 executive, at its North Martin Harcourt. Osaka 5 July, Nagoya 6 July, Kawasaki 10 July,
Island and South Island AGMs. Out-going member Paul
Auckland 28 July, Lyttelton 30 July, Wellington 31 July, Nelson 1 August.
The new executive consists of O’Connor was thanked for his hard
Graeme Macdonald, David Weir, work during his term.
www.autofile.co.nz | 5
cover story
continued from page 1
Industry Leaders at Loggerheads over ESC
now 75-80 percent I would 36 hour period at the Ports of
think, in terms of it as basically a Auckland, checking each vehicle
mandatory fitment on passenger- for the presence of ESC, by turning
type vehicles and their derivatives. the ignition on without starting
They’ve moved on from having it the engine, and visually checking
as an option, to having it as just a for whether an ESC warning light
standard part of the build. Probably appeared, as well as the presence
80 percent of the new vehicles of an ‘ESC off’ button.
sold in New Zealand have it as a The survey showed ESC to be
standard feature.” present in slightly less than seven
However a recent study percent of the used cars being
suggests that ESC features imported. However this number David Vinsen Perry Kerr
at much lower levels in used was skewed by a small number of
imports. In November 2009 a non-Japanese cars, in which ESC increasingly common in all new available in 2015 for us to buy five
report on the presence of ESC in was present in around 40 percent. cars world-wide, uptake in the and six year old cars with ESC. It’s
used imports was prepared by The presence of ESC in Japanese Japanese domestic market has just a physical impossibility.
StratCon Partnership Limited, imports was calculated at 3.23 been substantially lower than in “If it was made mandatory in say
a fleet consultant company, for percent; of the 1922 Japanese cars the rest of the world. Sweden and two years time, the new car guys
the Accident Compensation surveyed, only 62 had ESC. Germany had figures of 98 and would just specify it and that would
Corporation (ACC) and the Ministry This low figure is a reflection 81 percent respectively for ESC be that, they would just have to put
of Transport (MoT). of the frequency of ESC in in new cars sold in 2008, while their costs up. They could do it. But
StratCon surveyed Japanese cars built for domestic the figure for Japan was just of course you can’t retrofit it to five
approximately 2000 cars over a consumption; while ESC is 19 percent, up from 14 percent year old cars in Japan.”
in 2007. The average across all Vinsen believes that if ESC
European countries for ESC in new were made compulsory for
cars was 55 percent in 2008, up used imports, the net effect for
Porsche Technical Support & Training from 50 percent in 2007. road safety would be negative.
• Rare Industry Opportunity Nevertheless Kerr believes “Research done by the New
that the importance of ESC as Zealand Institute for Economic
• Wide-ranging and diverse role
a safety feature makes a strong Research (NZIER), commissioned
European Motors Limited is responsible for the importation and distribution of Porsche
case for making it mandatory. “It’s by the IMVIA and the Motor
vehicles, parts and providing aftersales support in New Zealand for all elements
relating to the brand. a significant safety feature, and Trade Association (MTA), showed
To further enhance our after sales support, Porsche New Zealand is seeking a highly unless you put it into the used that when you impose these
motivated individual to fulfi l the role of Porsche Technical Support and Training. This is a import fleet, then fundamentally sorts of restrictions –particularly
pivotal role in continuing the development of customer service for the Porsche marque.
it won’t find its way through to around exhaust emissions, but
The role includes:
the average motoring public. And the principle maintains – that if
• Technical and Service Support
• Development and delivery of Technical Training
certainly since the companies restrictions are imposed it limits
• Warranty system administration started fitting electronic stability the numbers of fresh vehicles
• Manage special tool requirements control to the majority of the New coming into the fleet, so the fleet
• External service provider liaison Zealand new vehicles, we’ve been will naturally get older.
• Porsche Motorsport Technical Support
saying to the officials that we “In fact, the ESC suggestion
As a highly motivated and skilled individual, you will possess the following experience really need to get New Zealand is completely at odds with the
and qualifi cations:
• Appropriate motor industry technical qualifi cation
into the 21st century.” Ministry of Transport’s other
• Extensive technical product knowledge Imported Motor Vehicle proposal, which is to get the age
• Aftersales experience in workshop management and organisation Industry Association (IMVIA) Chief of the fleet younger. And if you
• Training skills Executive David Vinsen believes can work on getting the age of
• Well developed communication skills
any suggestion of making ESC the fleet younger, you get a whole
• Ability to work within a small team environment
compulsory on used imports to be lot of benefits, not just specifically
If you believe you have the necessary skills and experience to take on this unique
opportunity, please apply in writing by email with an attached CV to:
without merit. “In terms of making ESC, you get environment, health
Erik Waanders: ewaanders@porsche.co.nz it mandatory from 2015, the key and safety, a range of different
Applications close 26 June 2010 point is that there will not be a improvements.”
pool of vehicles available in Japan Kerr disputes the claim that
to draw from. They’re not making import restrictions would lead to
and selling sufficient vehicles an older fleet. “We totally disagree
13651AF
into their domestic fleet now, and with that, [the IMVIA] may say
in the last couple of years, to be that, but fundamentally there’s no
6 | www.autofile.co.nz
news
Electronic Stability Control is the generic term
for computerized systems that detect a loss
of driver control, and help to ‘steer’ the car to
where the driver intended to go.
ESC has a variety of manufacturer-
specific names, including Electronic Stability
Programme (ESP), Vehicle Dynamic Control
(VDC), Dynamic Stability and Traction Control
(DSTC), as well as others.
The Mercedes-Benz A Class gained
notoriety after a Swedish journalist managed
to roll it in the Moose test (swerving to avoid
an obstacle) while travelling at 37 km/h.
Mercedes-Benz recalled all versions it had
sold and retrofitted them with ESC, the first
use of the technology in a small car.
proof of that at all. In fact if you buy the vehicles they want. result in a significant reduction their current vehicles – thereby
look at the changes in registration, Manufacturers and distributers in the volume of used imported defeating the whole aim of
they continue on, we change in New Zealand should continue vehicles. This would be at the increasing the safety levels of the
vehicles every three years on to specify their vehicles to higher expense of cars that have safety overall fleet.”
average. The numbers aren’t and and higher standards. equipment such as airbags, ABS, Whether the Safer Journeys
haven’t been influenced by things “If it went ahead as in the EBD and the like already fitted. discussion document is converted
like the emissions standards, it’s discussion document, and it were “Owners wanting to upgrade into a solid policy proposal remains
just a rubbish story that the IMVIA made compulsory from 2015, would find they had little choice to be seen. However the positions
like to run. There’s no factual proof it would just stop all of used in terms of what they could of the two Associations are already
to that story at all, it’s just totally imports, which would mean a upgrade to, and thus remain in well defined.
false and misleading.” huge loss of not only jobs and
Nor does Kerr believe that were businesses, but it would also
ShiPPing
ESC to be made mandatory, used mean that the New Zealand
car importers would have to much public would be stuck with the
trouble finding stock. “There is stock which is currently in the
stock over there, they’d just have country at that time, and the fleet new & uSed vehicleS
to be more choosy about what would get older and less safe at a
they pick. 15 years ago they were
pointing the finger at the new
very fast rate.”
The Motor Trade Association “door to door”
vehicle industry, for how great
they were with air conditioning
does not believe that ESC should be
made mandatory, says Marketing Worldwide
units and electric windows. Well and Communications Manager
now we’re saying, ‘here’s a safety Ian Stronach, “MTA considers that from USA, UK, Singapore, Hong Kong,
feature that basically should be in the mandatory fitment of ESC to Japan, Australia, Dubai
all vehicles, so get real’. all new cars is something that the
“It’s not us saying it either, it’s manufacturers themselves need to NZ or...
the Government saying it. The to decide across their current and Contact us today to see how we can provide
import industry will basically future model ranges. Like most a Top Quality Service at Competitive Prices
have to come forward, they’re safety features, it’s likely that ESC
purchasing vehicles that are eight will, over time, become a standard nOw iS The TiMe to take Advantage of the High
or nine years old on average, feature anyway.” Exchange Rate and Buy Yourself that Dream Car
they’re just going to start having to
purchase newer stock.”
On the potential consequences
of ESC being made compulsory
You DESERvE iT!
However Vinsen disagrees. for used imports, the MTA hold
“This is just Perry Kerr, and his a similar position to the IMVIA.
foreign-owned new vehicle Says Stronach, “We do not believe
manufacturers up to their it is in the best interests of New
old tricks again, trying to use Zealand motorists for ESC to be
a Government proposal for mandatory on all used imports. We Contact Joe:
market domination for their understand it has a low call up +64 9 303 0075 or 021 968 694
own products. It would be anti- rate for new vehicles in Japan, email: joe@mmnz.biz • website: www.mmnz.biz
competitive. The market should meaning fewer vehicles eligible 8 Farnham Street, Parnell, Auckland
dictate, and people should for import and in turn likely
www.autofile.co.nz | 7
news
Perceived efficiency gets buyers’ nod
New car buying patterns have “Large cars now form the what the whole of the package manufacturer and distributor
shifted dramatically since 2004, smallest segment of the market. means to your organization. I profit levels, particularly for those
according to the Motor Trade This is a dramatic turnaround in think there’s been a whole lot brands that are more dependent
Association (MTA). just a six year period, and one more consideration given to that, on sales from this segment.
Segmentation data released few would have been forecasting, and therefore people are making Nevertheless, at the same
by the association show that at least not to that extent,” says far better sourcing decisions time some manufacturers have
medium (2.0-3.0-litre) and large Stronach. about the vehicles that ultimately positioned themselves well to
cars (3.0-litre and above) have New vehicle sales dropped fit their organisation.” take advantage of the shift.
lost significant market share, across the recession, as With sustainability an Todd McDonald, General
while small (1.3-1.5-litre) and light businesses deferred fleet important part of corporate Manager of Kia Motors New
(1.6-2.0-litre) cars have gained. upgrades. Downsizing fleet cars image, smaller cars can Zealand, recognizes that
According to MTA Marketing was another consequence of the also establish a company’s significant changes in the past
and Communications General downturn, says Jack Gordon- environmental credentials, five years have impacted on car
Manager, Ian Stronach, several Crosby, General Manager of believes Gordon-Crosby. buyers’ decisions in New Zealand.
factors beyond petrol price GBS Supplycorp, a procurement “The banks are a really However he believes that the
increases have influenced service-provider. good example. They used to growth in popularity of small cars
buying patterns. “The move to smaller cars is buy Maximas, Falcons and is a result of more than just fuel
“Once the price of oil started a definite trend, and has been Commodores, now they’re buying prices, citing improved safety and
its upward march in mid-2004, it on-going. With the downturn, things like the Hybrid Prius, the design as important factors.
was clear to most in the industry companies put the brakes on, with diesel Mondeo, and the diesel “It used to be said that you
that larger would progressively be fleet sales dropping 30 – 35 percent. Skoda Octavia. couldn’t sell a small car in this
replaced by smaller. What’s actually “It’s slowly picking up, but “Banks are always trying country because new car buyers
occurred since then has been more it’s not a massive pick-up. And to leverage off those sorts of were only interested in larger
complex than that, and thrown up purchasing of large 3-4 litre things, to create a greener more models, but that has changed
trends and patterns that we doubt vehicles has definitely had a big, sustainable image, that they’re for good.
anyone saw coming.” big slowdown. doing the right thing for the planet. “The reasons have not just
The current market “There is a higher consideration “And it’s not unique to been about the cost of fuel and
segmentation guidelines for new for cars that are diesel, high- the banks. All fleet operators the purchase price of the vehicle
vehicles were introduced in April efficiency petrol engines, or just are being a lot more savvy itself, but also in key changes to
2004. Since that time, the price of generally anything that is more about what it is that they’re the vehicles themselves.
petrol has risen from $1.15 a litre efficient to run. buying, because ultimately if “One of the biggest changes
for 91-octane to $1.77, a rise of “It’s both a question of the they’re buying cars that are old has been the improvement in
close to 55 percent. initial cost of the vehicle, and technology or not purely efficient safety standards, whereby small
Though large cars comprised the long-term running costs. or safe, that’s going to have an cars now have the same sort of
24 percent of total new car sales But it’s more than that really, it’s impact on their bottom line.” technology and protection that
in 2004, in the first four months the whole of life approach, you As the MTA notes, with larger used to be found on larger and
of this year they made up only 14 shouldn’t purchase something cars tending to be much more more expensive cars.
percent. The medium segment purely on its purchase price or the profitable than smaller vehicles, “Kia Motors was among the first
has dropped from 18 percent in discount someone’s giving you. the consequent fall in popularity to introduce Electronic Stability
2004, to 14 percent this year. “You should be considering can have a flow-on impact on Control and multiple airbags
Ken Worsley
Vinz delivers outstanding
Increasing used import modest increases in the group’s Chairman Ken Worsley says
arrival numbers in the second retail WoF and CoF services, this is a sharp contrast to the
half of the financial year helping to deliver a better than previous year’s loss of $615,000
contributed greatly to a turn expected result.” and very pleasing for the
around for Vehicle Inspection In its annual report released directors in Vinz’s first year as
New Zealand (VINZ). this week, VINZ reported a 12 an investor owned company.
General Manager Frank percent revenue increase to In June 2009, Vinz changed
Willett says that arrival year end 31 March, helping the from a co-operative company to
volumes rose dramatically company achieve a net profit become investor owned.
from September – adding to after tax of $1,112,000. Worsley says the result was
8 | www.autofile.co.nz
news
Segment as % of New Passenger Market
35%
development of the SUV in recent lot of people, especially in New
30%
years has made growth in the Zealand’s aging population, it’s
segment a global trend. a lot easier to get in and out of a
25% “The ordinary, low-ratio, bush- small SUV than it is to get out of
bashing SUV is dying out, and is a low-slung car. So it’s versatility
being replaced by a more efficient more than anything else.
20%
version, which has got 4WD, but “There’s also a perception that
it doesn’t have low-ratio, it has they’re safer and stronger, which
15% electronic add-ons that make it a isn’t necessarily the case, but
little bit off-road capable. perception is everything.”
“These new vehicles are not As Oxley notes, SUVs are
10% nearly as heavy on fuel as the old ubiquitous in the more upmarket
ones, they are usually about as suburbs in New Zealand as well
5%
good on fuel as a big sedan or as around the world. “Fashion
Light Small Medium Large SUV
station wagon. obviously comes into it as well,
“The other thing is that they’re it’s hugely fashionable to have an
0% very user-friendly for families. SUV. It’s not just New Zealand, it’s
2004 2005 2006 2007 2008 2009 04/10 A lot of them have seven seats, Cape Town, London, even Paris.”
Supplied by MTA you can pack a lot of luggage, With efficiency increasing, and
people sit high so the kids can with new smaller SUVs on the
to small cars in New Zealand, One result that may have see around. They don’t take up a market, Oxley expects the SUV
which helped to change the surprised some, and seems to go lot of road-space. to maintain and consolidate its
consumer’s mindset. We benefitted against the grain, is the persistent “Another feature is that for a current popularity.
considerably from that decision. popularity of Sports Utility
“Similarly, when fuel prices Vehicles (SUVs), which have made
rose, Kia was well-positioned up more than 25 percent of the
to take advantage with a range new car market this year. SUV
of fuel-efficient vehicles that purchases are largely fueled by
matched the expectations and private buyers, who make up 73
tastes of the new car buyer – percent of this segment.
we were at the forefront of the This growth is partially-driven
introduction of high technology by a lack of used imports stock;
diesel engines in small cars, for new emissions regulations which
instance. came into force at the beginning
Take us for
“And when the financial crises of 2008, and increased buying
struck, Kia was already well down competition in Japan, has seen
the track with a programme to the number of used imports
redevelop our entire model range
to ensure that we were in tune
with the tough economic times.”
available decline.
John Oxley, editor of 4WD
Magazine, says the technical
a test drive...
We realise not every person fits standard vehicle
finance criteria. That’s why at Avanti Finance we base
result
each application on the client’s individual profile.
Frank Willet
Now there’s an alternative to get more customers
on the road with approved finance deals.
assisted by utilisation of tax So take us for a test drive.
losses not recognised in the Contact Leyton Mercer
2008/9 year. Phone 021 706 215 or 0800 808 058
“If results were adjusted for
normalised income tax, the profit
would still be a credible $884,000!”
www.avantifinance.co.nz
A partially imputed final
dividend of 15 cents a share was
paid to shareholders on the 14
May 2010.
www.autofile.co.nz | 9
news
News in brief
Vehicles wanted Changes to Driver Licensing Fees
Driver licensing fees have been changed, correcting what Transport
Buying now Minister Steven Joyce says was poor financial oversight by the previous
government, with the new fees coming into effect July 1.
According to Joyce, the new fees will more accurately reflect
the costs of the service. “Driver licensing and testing fees were last
reviewed in 2001. Since 2006, the cost of providing the driver licensing
and driver testing services has not been met by the fees charged and
Paul Curin the gap between revenue and costs has steadily grown.”
While fees for 22 services will increase, including sitting learner,
0274 333 303 restricted and full license tests, fees for 19, including the license
pcurin@miles.co.nz
renewal fee, will decrease. Four fees, including those for drivers aged
75 years and older, will remain unchanged.
We are always looking to purchase In addition, three new fees will be introduced. A license
news
NZ NeW cars aNd commercials reinstatement fee will apply from 31 January 2011 for disqualified
drivers and drivers suspended for demerit points, as well as a new
administration fee for withdrawing from or rescheduling a driving test.
News briefs
• License renewal fee: Now $44.30, decreasing to $43.00
Vehicles wanted BUYING NOW
• Learner license test fee: Now $79.00, increasing to $91.90
Buying now
• Restricted license test fee: Now $88.20, increasing to $105.80
Volvo deal – done
It’s• been on-again,
Full license testoff-again,
fee: Nowand this time
$115.10, it looks as
increasing to if$133.20
the
BRETT HARRIS 029 293 1232
www.farmerautovillage.co.nz FARmER AUTOvIllAGE Ford-Geely deal for the buy-out of Volvo is sign, sealed and
delivered. Geely has bought the Swedish brand for $US1.8
billion ($NZ2.5b), China’s biggest overseas auto purchase. Ford
Phil Wills 021 877 422 will continue to supply powertrains, stamping and other parts
phil.wills@inghamprestige.com
Paul Curin
www.inghammotorgroup.co.nz
Conviction for Vehicle Finance Company
to Volvo after the sale.
A small Auckland-based car finance company, Dolbak Finance
0274 333 303
Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ.
Limited has pleaded guilty to breaching the Credit Contracts and
pcurin@miles.co.nz Chrysler reopens yards
Consumer Finance Act (CCCF Act) and the Fair Trading Act in relation
Chrysler Group, reversing an earlier stance, says it will offer to
ALWAYS BUYING ANY VEHICLE OVER $500 CONSIDERED to car loan contracts.
reinstate 50 closed US dealerships within the next few days.
We are always looking to purchase
CONTACT OUR STAFF TODAY A Commerce
Letters Commission
of intent will be sent to 50investigation
of the estimated found
400 that Dolbak
rejected
Adam Winter ph: 021 635 352 e: adam@avc.net.nz Kane Owen ph: 021 356 300 e: kane@avc.net.nz
NZ NeW cars aNd commercials Finance Limited’s
dealerships carapplied
that have financing
to getcontracts did not
their franchises comply
back throughwith the
AUCKLAND VEHICLE CONSULTANTS arbitration,
CCCF Act, asChrysler saysnot
they did in aaccurately
statement. They “are in
disclose locations
the annual interest
that charged
rate offer customer
on theservice
loans.benefi
The ts and will have limited
Commission’s adverse also
investigation
impact on the dealers within our current network,” says Chrysler.
found that in relation to contracts entered before April 2007, Dolbak
The National Automobile Dealers Association says “it is a move in
Finance
the rightLimited misrepresented its right to enforce the terms of the
direction”.
contracts, a breach of the Fair Trading Act.
In 2007, the Commerce Commission prosecuted the partners in
Toyota supplies Mazda
Dolbak Finance, Anthony Baker and David Dolbel for breaches of
Wanted 2003 onwards HSV and Commodore, Mazda Motor Corp will introduce a midsize hybrid vehicle by
both the CCCF and Fair Trading Acts, for failure to provide initial
NZ new Suzuki, Nissan and Mazda product. 2013 based on core components supplied by Toyota Motor
disclosure in relation to 99 customers who had taken out car
Call Daryn Pennington 067594586 direct, daryn@autocity.co.nz or 0274 496499 Corp, the Nikkei Business Daily reports. The two automakers
loans.
reached Both partners pleaded
an agreement under which guilty to 22
Toyota willcharges
supply theeach and were
convicted and fined.
Toyota Hybrid System II (THS II), currently used in the third-
BUYING NOW Dolbak Finance
generation Prius. The Limited,
deal willwhich
enabletook
Mazda over thethe
to tap cargrowing
loan contracts
To adverTise
demand
from for hybrids
Dolbak Finance sooner
in Aprilthan otherwise
2007, did not possible.
correctFor theToyota,
lack of
the arrangement will help lower related production costs
disclosure and took action to enforce the contracts of 14 of the
here conTacT:
through economies of scale.
BRETT HARRIS 029 293 1232
www.farmerautovillage.co.nz FARmER AUTOvIllAGE affected customers, including issuing repossession notices and
proceedings to collect payments. The affected customers included
0508 288 Fiat wants more
Phil 863
those for whom Dolbak Finance was originally convicted.
Wills 021 877 422 FiatDolbak
CEO Sergio Marchionne
Finance Limitedsays wasthe Italian
fined automaker
a total will in the Auckland
of $2000
phil.wills@inghamprestige.com
021 455 775 www.inghammotorgroup.co.nz
Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ.
increase its stake in Chrysler to 35% within two years. The first 5%
District Court. In sentencing, Judge Cunningham noted that the level
increment could come as early as this year after Chrysler begins
of fine in this case should not be taken as precedent by other creditors,
making engines for the Fiat 500 in Dundee, west of Monroe. The
advertising@autofile.co.nz as it took into
subsequent twoaccount
purchasesthewill
particular
depend on circumstances of the creditor’s
increasing Chrysler’s
situation,
distribution outside the US and assembling a new fuel-effifines.
in that they are still paying off the original cient car
in the US, he says.
10 | www.autofile.co.nz
Driver magazine soldnew cars
VW acquires majority holding in Italdesign
2010 VW Mk1 Golf Ltd Edition VW Up! Lite Concept
Volkswagen Group has bought in northern Italy. and the third-highest selling model continuing its model initiative over
a 90.1 percent stake in iconic design Established by Giorgetto of all time, with over 25 million the coming years and will benefit
house Italdesign Giugiaro. Giugiaro in 1968, the company has having been built by 2007. from the capacity and competence
VW has bought the brand worked with a large number of VW boss, Dr. Martin Winterkorn, of Italdesign,” says Winterkorn.
name rights and patents through European manufacturers, including says Italdesign, led by Giugiaro, Giugiaro is currently working
the Group’s Italian subsidiary Lamborghini, BMW, Audi, Alfa “has been instrumental in shaping on the planned Volkswagen Up!
Lamborghini Holdings. The Giugiaro Romeo and Fiat, to name but a few. the face of the automobile model family, which is likely to be
family retains the remaining shares. Giugiaro also penned the design industry worldwide. As the creator Volkswagen’s flagship brand over
The headquarters of Italdesign, for Volkswagen’s 1974 Golf Mk1, of the Golf I, Giugiaro laid a new the decade. The Up! Model is due to
which has 975 employees and 800 the heavily influential model that foundation for Volkswagen design be released 2011, with E-Up!, VW’s
CAD workstations, is situated in across six generations has been in the 1970s. first mass-produced electric car, to
Moncalieri, 15 km south of Turin, Volkswagen’s best selling model, “The Volkswagen Group will be be released in 2013.
Nissan cuts Pathfinder
range to one
Nissan will sell only one rounded, with new bonnet, bigger
version of its revised 2010 grille, restyled bumpers and sleek
Pathfinder mid-sized, seven- Xenon headlights. It rides on
seater SUV in New Zealand. 17-inch alloy wheels and has front
The 2010 model lists at foglights and folding door mirrors.
$76,800 and has a specification Inside, there’s leather
based on the previous upmarket upholstery, chrome highlights,
Compact Mitsi crossover Ti, with turbodiesel motor and
five-speed automatic gearbox.
more user-friendly switchgear,
Bluetooth phone connectivity
for New Zealand
The 2.5-litre engine is 11 percent and an MP3-compatible six-disc
more powerful and torque lifts by in CD sound system
47Nm to a healthy 450Nm which ESP, hill-descent control,
Mitsubishi is playing the fuel litres/100km and 188 g/km. will ensure good towing ability. hill-start assist, ABS with EBD are
economy and low emission hands Diesel Sport models are said to Nissan says fuel use drops to 9.0 standard, along with six airbags
with its five-model ASX (Active be good for 5.9 litres/100km and litres/100km, a 1.3 litres/100km fall. and three-point seatbelts for all
Smart Crossover) compact SUV 155g/km. The new Pathfinder is more seven occupants.
range that arrives here in August. The ASX offers an SUV-like high
It’s offering two engines, the ride height, Bluetooth connectivity
2.0-litre DOHC MIVEC petrol and on Sport models, one-touch
1.8-litre DOHC MIVEC intercooled engine starting and lightweight
turbo diesel, a choice of two-wheel impact-resistant front guards.
drive and four-wheel drive and Frontal styling follows the large
standard and Sport specifications. rectangular grille theme debuted
Mitsubishi quotes fuel use and by the Lancer Evo X.
CO2 figures of 7.9 litres/100km and The five models range from the
184 grams/km for the petrol 2WDs, LS 2WD at $35,490 to the D4 Sport
with the petrol 4WD managing 8.1 Manual 4WD at $45,990.
www.autofile.co.nz | 11Upfront with Allan Dick
Nothing I like better than a Good Drive. Get Queen’s Birth Weekend? Just three words for it. to explain it as neither speed nor alcohol were
into the car and head for the horizon and when Stupid. found to be factors in most of the crashes. So
you get there, keep on going Stupid. they scrambled around and found something
In the past month I have driven from Auckland Stupid. new to blame — impatience.
to Dunedin and back — twice! As well as sundry The cop line is that it’s an experiment, but if it It might be new to the Police, but it’s not new
runs like Auckland to Taihape and back. proves successful, it will become policy. to tens of thousands of road users.
I’ve developed a specific route and a If she was a man I’d accuse her of suffering Police measures have turned us into a nation
timetable for these drives — as well as a specific from the Small Willie syndrome and likes being of drivers who have lost the ability to pass a
way of driving. I set cruise control on 106/7km/h slower vehicle in front. Years of dumbing down
and develop a rhythm. means most of us are simply now content to
There was a stage when I collected speeding
tickets in sufficient numbers to hit the 100 ... impatience. lower our speed and play follow-the-leader
when we come up behind a slower vehicle. And
points twice and had to surrender my license to then another comes along and joins the line
the polite policeman who came to the door. It might be new to the and another and another until we have a mob of
But, with age comes wisdom and I have now sheep, travelling single file along the road with
largely learned that it’s easier to play their game. Police, but it’s not new their brains in neutral.
A couple of weeks ago, I blotted my clean three Eventually someone will come along who
year old record — I got the red and blue flashing to tens of thousands of isn’t brain-dead and they get impatient. The
lights in my mirrors as I exited Ngaruawahia result is inevitably risky passing.
on the back road late-ish one night. I hadn’t road users. Rose’s dumb idea, if applied evenly and
waited until I cleared the 50km/h zone before across the board, means that those Big Rigs
accelerating. that now travel at 100 – 105km/h and aren’t the
He was a nice man — but a freshly arrived total pain in the bum they could be, will now be
Pom who didn’t have a clue where my new a bossy-boots to assert her authority. His muscle travelling at 94km/h and thus the impatience
home town of Oamaru was. flexing and money grubbing. level among following motorists will be even
So, I like driving, but what do I think of Police Rose’s move comes after one of the worst higher. Result? More risky overtaking. More
Superintendent Paula Rose’s idea of reducing road toll records last Easter for a long time and crashes. More deaths.
the 10km/h “tolerance” to just four km/h over a time when the Police said they were at a loss Silly idea Paula Rose. Silly!
Classic Falcon sold for $330,000
Aussie auction house range of $260,000-$320,000.
Shannons’ prediction that a 1971 Bidding started at $A260,000
Ford XY Falcon GT-HO Phase III and rose in $10,000 leaps before
would sell for a third of a million ending in a $1000 slugging
dollars became fact at its May 31 match. A telephone bidder
sale in Melbourne. bought the car.
After a fierce bidding war, A left-hand drive 1961
the fully-restored Monza Green Chevrolet Corvette Convertible
sedan, which is believed to have that until two years ago was
had six owners from new and had owned by rock star Alice Cooper,
107,000 miles (172,000km) on the sold for $A78,000, complete with
odo, sold for $A331,000, which Fender Squier Stratocaster guitar
was above its pre-sale guiding signed by Cooper.
12 | www.autofile.co.nzdisputes
Purchaser stuck with Commodore Why:
The purchaser tried to reject a
Holden Commodore because
of a faulty ignition system.
Ruling:
The tribunal rejected the claim
because the fault was not
Background vehicle’s ignition to operate. The The tribunal’s decision deemed to be of ‘substantial
On December 17, 2009 the next day the purchaser gave The tribunal was in little doubt character’.
purchaser bought a 1997 Holden
VS Commodore for $4500 from
evidence that she was driving
the vehicle and her children at
that the purchaser did not contact
the trader and require him to
Where:
Motor Vehicle Disputes
the trader. about 11pm that night when she remedy this fault before having Tribunal, Rotorua.
The purchaser has purported stopped the vehicle to talk to her it repaired. Hence, regrettably,
to reject the vehicle under the father. When she attempted to the purchaser was not entitled to
Consumer Guarantees Act 1993 restart the vehicle the ignition recover from the trader the cost.
(“the Act”) because she said it had lock would not turn and the This was because s.18(2)(a) of the fault and second, the fault did not
a serious fault, namely a faulty steering wheel remained locked. Act provided that a purchaser must make the vehicle unsafe; it simply
ignition system. The purchaser had the vehicle “require” a supplier to remedy made the vehicle unable to be
The trader said the purchaser towed back home. any faults and give the supplier a driven. Accordingly, the purchaser
was not entitled to reject the Unfortunately the purchaser reasonable time in which to do so was not, in the tribunal’s view,
vehicle because the fault in the did not instruct the mechanic before going elsewhere to get the entitled to reject the vehicle.
ignition system was not a failure of to tow the vehicle back to the goods repaired.
substantial character. trader so that the ignition and The tribunal was however
steering lock could be repaired. satisfied that the purchaser made Bruce Dell’s Comment
Instead the mechanic, without the trader aware of and required This purchaser bought a 1997
The evidence the purchaser’s consent, had the him to remedy the other faults. Holden vehicle for $4,500.00. The
The salesman informed his CEO ignition lock replaced and repaired The trader had an obligation purchaser tried to reject the
that the purchaser had requested the steering lock and invoiced the under s.18(2)(a) of the Act vehicle as having serious faults
repairs to be done. The CEO told purchaser $826.31. The insurer having been required to remedy to justify a substantial fault and
the salesman that the trader declined the purchaser’s claim for those faults, to do so within a to justify cancellation of the
would not agree to do any of the repair costs for reasons which reasonable time of having the contract. Pleasingly, the Judge
the work on the vehicle and that were not adequately explained to vehicle returned to him for that did not accept the evidence of
if that was not acceptable the the tribunal. purpose. If the trader did not the purchaser. It would seem
trader was willing to rescind the The purchaser’s partner do so or did not do so within a again that the dealer was
VOSA. Unfortunately the salesman telephoned the salesman and reasonable time, the purchaser not given the opportunity of
deliberately failed to convey that informed him of the faulty ignition may then either have the faults repairing the vehicle.
instruction. He gave as his reason but he said the salesman did not repaired elsewhere at the trader’s At the end of the day though,
for not doing so that “he wanted want to know about the matter. cost or reject the vehicle in terms the Tribunal was not persuaded by
to get through Christmas”. The trader’s CEO said the of s.18(2)(b) (i) or (ii) of the Act. the purchaser that the fault with
Instead the salesman completed repairs to the vehicle’s ignition As soon as the purchaser paid the ignition switch and the steering
the VOSA with his signature as had been completed before the the account and uplifted the lock were failures of substantial
agent for the trader and the date purchaser informed the trader of vehicle she should take it to the character. The faults did not make
on which the purchaser’s offer was the problem and hence the trader trader with a list of the faults she the vehicle unsafe.
accepted by the trader. should not be liable. wanted fixed.
On December 23 the The vehicle remained with the Meanwhile, the tribunal was not On a note of caution, dealers
purchaser said she had stopped mechanic because the purchaser, a persuaded by the purchaser that should well acquaint themselves
the vehicle and had difficulty beneficiary, and her ex-partner, an the fault with the ignition switch with the Fair Trading Act provisions
starting it because the ignition opossum trapper, claimed they had and steering lock was a failure and Consumer Guarantees Act
key would not turn. The purchaser no money to pay for the repairs. of substantial character because provisions as these decisions
Bruce Dell Law – “problem solver”
called out a mobile mechanic The trader’s CEO said he had made first, the vehicle would probably generally come back to provisions
who sprayed a lubricant in the various offers to try and resolve the still haveautofi
beenleacquired by a of these
are delighted to have Bruce as Acts
part and dealers’
of the Autofile team advising o
ignition lock which enabled the matter, without success. reasonable purchaser
on the lessonsaware
to beoflearned obligations
that from thereunder.
past Motor Vehicle Disputes Tribunal ca
If you require legal advice give Bruce a call on 09 570 5036
law
.
Bruce Dell Law – “problem solver”
Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has
bd
handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North
autofile are delighted to have Bruce as part of the Autofile team advising our readers on past Motor
Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036
www.autofile.co.nz | 13You can also read
