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Industry Leaders at Loggerheads over ESC BOTH NEW and used passenger car sales achieved good results in May, sales figures show. And with sales of light commercial vehicles also strong, the industry recorded its 5 th consecutive sales increase on last year’s monthly figures. The 4,616 new passenger vehicle registrations in May was a 16 percent improvement on May 2009. “For the first five months new car registrations totalled 24,496 units which is 14 percent on the same period 2009. This is now slightly ahead of the industry projection – so we are very happy with these results,” says Perry Kerr, Chief Executive Officer of the Motor Industry Association. The used passenger market recorded even stronger sales, with 7,381 units a 41 percent improvement on May last year. Year to date used passenger sales are at 35,823, a 42 percent improvement on the same period last year. THE RESPECTIVE Associations representing the new car and used import markets are in sharp disagreement over the suggestion that electronic stability control (ESC) be made mandatory in used imports from 2015. The benefits of making ESC compulsory are discussed in the Government’s Safer Journeys, the national road safety strategy for 2010-2020. While the Government’s road safety policy focuses mainly on improving drivers and roads, it also makes improving the safety of the light- vehicle fleet one of its priorities, and considers ESC to be an important part of this. It suggests ESC be made mandatory for all new cars entering the fleet from 2014, and then all used imports the following year in 2015. According to Perry Kerr, Chief Executive Officer of the Motor Industry Association, there is no doubt ESC would reduce accidents and fatalities. “ESC is a feature that is recognized in the car industry globally as offering significant safety benefits. “Overseas studies show that it has the potential to reduce deaths and serious injuries anywhere up to 60 percent, with averages around 30-35 percent. From the New Zealand point of view we believe those savings will be even greater, due to our roading network, which is fundamentally a two-lane highway with no median barrier. You’re going to save cross-overs in terms of losing control, for example on a corner, which could potentially result in the car hitting someone coming the other way, even more so we believe in terms of the New Zealand environment. Electronic stability control is becoming mandatory for new cars in an increasing number of countries, including Australia from 2011. However New Zealand light vehicle fleet constitution is unique with used-imports making up over half the light vehicle market. Evidence suggests that levels of ESC differ widely between the new and the used markets. According to Kerr, levels of ESC in new cars are already high. “12 months ago we were at 65-70 percent, we’re probably running The voice of the auto industry 10 June 2010 May Sales Remain Steady continued on page 17 Autofile is now published twice per month and sent COMPLIMENTARY to over 1400 auto industry and associated businesses throughout New Zealand If this is your target market - WE REACH IT The voice of the auto industry continued on page 6

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Industry Leaders at Loggerheads over ESC

Both new and used passenger car sales achieved good results in May, sales figures show.

And with sales of light commercial vehicles also strong, the industry recorded its 5th consecutive sales increase on

last year’s monthly figures. The 4,616 new passenger

vehicle registrations in May was a 16 percent improvement on May 2009.

“For the first five months new car registrations totalled 24,496

units which is 14 percent on the same period 2009. This is now slightly ahead of the industry projection – so we are very happy with these results,” says Perry Kerr, Chief Executive Officer of the Motor Industry Association.

The used passenger market recorded even stronger sales, with 7,381 units a 41 percent improvement on May last year. Year to date used passenger sales are at 35,823, a 42 percent improvement on the same period last year.

the respective Associations representing the new car and used import markets are in sharp disagreement over the suggestion that electronic stability control (ESC) be made mandatory in used imports from 2015.

The benefits of making ESC compulsory are discussed in the Government’s Safer Journeys, the national road safety strategy for 2010-2020. While the Government’s road safety policy focuses mainly on improving drivers and roads, it also makes improving the safety of the light-

vehicle fleet one of its priorities, and considers ESC to be an important part of this.

It suggests ESC be made mandatory for all new cars entering the fleet from 2014, and then all used imports the following year in 2015.

According to Perry Kerr, Chief Executive Officer of the Motor Industry Association, there is no doubt ESC would reduce accidents and fatalities. “ESC is a feature that is recognized in the car industry globally as offering significant safety benefits.

“Overseas studies show that

it has the potential to reduce deaths and serious injuries anywhere up to 60 percent, with averages around 30-35 percent. From the New Zealand point of view we believe those savings will be even greater, due to our roading network, which is fundamentally a two-lane highway with no median barrier. You’re going to save cross-overs in terms of losing control, for example on a corner, which could potentially result in the car hitting someone coming the other way, even more so we believe in terms

of the New Zealand environment.Electronic stability control is

becoming mandatory for new cars in an increasing number of countries, including Australia from 2011. However New Zealand light vehicle fleet constitution is unique with used-imports making up over half the light vehicle market.

Evidence suggests that levels of ESC differ widely between the new and the used markets.

According to Kerr, levels of ESC in new cars are already high. “12 months ago we were at 65-70 percent, we’re probably running

The voice of the auto industry 10 June 2010

May Sales Remain Steady

continued on page 17

Autofile is now published twice per month and sent COMPLIMENTARY to over 1400 auto industry and associated businesses throughout New Zealand

If this is your target market - we reach It

The voice of the auto industry

continued on page 6

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Aging fleet a cause for concern

electronic staBility control and vehicle scrapping schemes – the two opposite ends of the light vehicle fleet.

Questions of standards for vehicles entering the new fleet aside, everyone can agree that the average age of New Zealand’s light fleet is too high.

Unfortunately this problem is only going to get worse before it gets any better.

Data shows that in 2008, one third of the vehicles in the light fleet had model years of between 1995 and 1997.

According to the Ministry of Transport’s report on the 2009 vehicle fleet statistics, the 1996 year-of-manufacture peak in the New Zealand fleet is a direct consequence of the Frontal Impact Standard, which had the effect of restricting used car imports to vehicles manufactured during or after 1996 (and some older vehicles that met the standard).

The report notes that as these mid-1990s vehicles age, there will be a significant effect on the age of the fleet.

The actual effect will depend on future vehicle imports and scrappage patterns.

Ostensibly the two vehicle scrapping trials, conducted in Auckland in 2007 and more recently in Christchurch and Wellington, are intended to provide policy-makers with information about the viability of a vehicle scrapping scheme.

The report on the most recent trial claims such a scheme to be costly, and without sufficient benefit.

 Yet that claim appears premature, for only a small portion of the trial was used to pay for the scrapped cars, and most of the cost came from advertising the trial.

 Only 20 percent went towards the scrapping incentive, with two-thirds of the total cost paying for its advertising. These costs seem disproportionate to the length of the trial, which was only three and a half weeks.

If this were a national incentive, advertising costs would not be divided by the number of cars scrapped in a matter of weeks, but across several years.

This would be money spent on a significant investment in safety on our nation’s roads, and it would also have favourable environmental consequences by removing many of the most-inefficient light vehicles.

While a heavily subsidized ‘Cash for Clunkers’ style scheme would not work in the New Zealand environment, if the Government is serious about road safety and reducing emissions it needs to develop a coherent plan for speeding up the removal of old cars from the light vehicle fleet.

Stian Overdahl Editor

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Copyright: Published weekly by: 4Media, PO Box 6222, Dunedin 9059 Distributed to all autofile subscribers. All statements made, although based on information believed to be accurate and reliable, cannot be guaranteed, and no liability can be accepted for any errors or omissions. Reproduction of autofile in whole or part, without written permission, whether by xerography or any other means, is strictly forbidden. All rights reserved.

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Ministry of the Environment (MfE) representatives are meeting with vehicle importers to discuss how the Emission Trading Scheme (ETS) can be implemented, says Imported Motor Vehicle Industry Association (IMVIA) chief executive David Vinsen.

“I’ve put together some people for them to consult with, and they’re going to be meeting with some of the major players in the import field in the coming days. They’re looking to determine the best way of implementing the ETS, if they proceed with it.”

From July 1 the ETS will introduce a carbon levy on

stationary energy and liquid fossil fuels, resulting in a rise in prices for petrol and electricity.

However waste and synthetic gasses will face an impost from 2013, and this will include the refrigerant gasses in vehicle air-conditioning systems.

While no exact costs are yet known, and will be dependent on the price of carbon when any credits are surrendered, the ballpark f igure is between $30 and $50 per used import car. New cars have more efficient air-conditioning systems, and so use less synthetic gasses.

Importers will have to

report on their full calendar year’s activity by 31 March, and surrender the appropriate number of carbon credits by 31 May. While reporting will be mandatory in 2012, importers will not have to surrender carbon credits until 31 May, 2014, based on their 2013 activity.

It is this payment structure that has drawn fire from those in the industry, who say it is impossible to expect a business to be able to pay credits for vehicles imported in the year previously, and that any collection must take place at the border, when the vehicles enter the country.

However it is prescribed

within the provisions of the ETS that all carbon credits must be surrendered after the year’s reporting. Importers are hoping the Government will recognize the impracticable nature of the ETS, and exempt the synthetic gasses in motor vehicles from the scheme.

The current consultation process concerns the most appropriate way of implementing the ETS. Possible options for calculating the amount of synthetic gasses imported include a database of vehicle models with the data, or calculating the average amount of gasses for a car’s year of production.

Officials to Consult with Industry Over Implementation of Emissions Trading Scheme

news

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)

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been fitted with them when built. Around 70% of the imported Japanese vehicles had had their catalytic converter removed, while the catalytic converters still remaining were found to still be working well. These findings mirrored the results of the 2007 Auckland scrappage trial.

Safety features in the late-age vehicles were minimal. Only two of the 122 vehicles examined were fitted with airbags; and only one car had ABS braking.

Around half of the participants had indicated that they would have attempted to sell their vehicles had they not scrapped them. While this removed a number of high-age vehicles from the road, the report concluded that the results did not justify the high cost of the trial. The total per-vehicle cost across all 349 vehicles was $430, while the cost

per each of the 122 vehicles that met the trial criteria was $1,240.

The final breakdown of the trial, the total cost of which was $150,361, showed that $30,000, or 20%, was paid out in the form of public transport passes, while $100,000 was spent on advertising, $18,500 on the new Toyota Corolla, and $2,700 was spent on emissions testing.

As the report notes, the trial could have continued longer for than the three and a half weeks with little extra cost. However it was unable to do so, due to the terms and conditions of the raffling of the Toyota Corolla.

In addition to information gleaned about the state of the oldest vehicles in the fleet, the trial concluded that there is a general lack of public awareness about how to safely dispose of unwanted vehicles, and the cost of doing so.

a Ministry of Transport report on a vehicle scrappage trial in Christchurch and Wellington concluded that scrappage schemes do not deliver a satisfactory result for the amount of money spent.

New Zealand’s light vehicle fleet is one of the oldest in the developed world, with an average age of around 12.9 years (December 2009). By comparison, the average age of a light vehicle in the Australian fleet at the same time was 9.7 years.

The vehicle scrappage trial was designed to encourage and speed up the removal of old vehicles from the fleet.

The trial ran for three and a half weeks in May 2009, and was a follow up to a 2007 scrappage trial conducted in Auckland. Scrappers were rewarded with a $250 public transport credit for their region, as well as a chance to win a new Toyota Corolla. The trial was heavily advertised, and media outlets including The Edge radio station ran promotions publicizing the trial.

Two scrap metal firms, Wellington Scrap Metals and Metalcorp NZ of Christchurch, were selected to participate in the trial, both of whom offered guarantees that no part of any vehicles scrapped in the trial would end up back in the fleet.

In all, 349 vehicles were

collected during the trial, although only 122 of these met the trial’s criteria of being operable, and holding a Warrant of Fitness, or being within two months’ of the WoF expiry.

The average age of the vehicles collected was 20 years, and the average mileage was 214,500 kilometres.

A survey conducted among participants discerned some variation in their views of their vehicles in relation to scrapping. Almost half said that they would have sold the vehicles in the absence of the trial, while a similar amount said they would have scrapped their cars anyway. Over half believed that their vehicle had a value greater than that offered in the trial (the $250 public transport credit), while 25% believed it would have cost money to scrap the car. Participants in the Wellington region tended to have an inflated view of their car’s value, while those in Christchurch estimated lower.

Another aspect of the trial was gathering information about vehicles in the tail-end of the fleet. Consistent with vehicle age, more than 60% of the vehicles collected had carburettored engines.

The absence of a catalytic converter was also notied in many of the Japan-manufactured vehicles, all of which would have

Vehicle Scrapping Trial Not Up to Scratch

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Trans Future 5 Voyage 41Osaka 7 June, Nagoya 8 June, Kawasaki 12 June,

Auckland 30 June, Lyttelton 2 July, Wellington 3 July, Nelson 4 July.

Trans Future 6 Voyage 38Osaka 21 June, Nagoya 22 June, Kawasaki 26 June,

Auckland 15 July, Lyttelton 17 July, Wellington 18 July, Nelson 19 July.

Trans Future 7 Voyage 38Osaka 5 July, Nagoya 6 July, Kawasaki 10 July,

Auckland 28 July, Lyttelton 30 July, Wellington 31 July, Nelson 1 August.

The IMVIA has elected its 2010/11 executive, at its North Island and South Island AGMs.

The new executive consists of Graeme Macdonald, David Weir,

Lloyd Wilson, Colin Nichols and Martin Harcourt.

Out-going member Paul O’Connor was thanked for his hard work during his term.

IMVIA elects 2010/11 executive

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Industry Leaders at Loggerheads over ESCnow 75-80 percent I would think, in terms of it as basically a mandatory fitment on passenger-type vehicles and their derivatives. They’ve moved on from having it as an option, to having it as just a standard part of the build. Probably 80 percent of the new vehicles sold in New Zealand have it as a standard feature.”

However a recent study suggests that ESC features at much lower levels in used imports. In November 2009 a report on the presence of ESC in used imports was prepared by StratCon Partnership Limited, a fleet consultant company, for the Accident Compensation Corporation (ACC) and the Ministry of Transport (MoT).

StratCon surveyed approximately 2000 cars over a

36 hour period at the Ports of Auckland, checking each vehicle for the presence of ESC, by turning the ignition on without starting the engine, and visually checking for whether an ESC warning light appeared, as well as the presence of an ‘ESC off’ button.

The survey showed ESC to be present in slightly less than seven percent of the used cars being imported. However this number was skewed by a small number of non-Japanese cars, in which ESC was present in around 40 percent. The presence of ESC in Japanese imports was calculated at 3.23 percent; of the 1922 Japanese cars surveyed, only 62 had ESC.

This low figure is a reflection of the frequency of ESC in Japanese cars built for domestic consumption; while ESC is

increasingly common in all new cars world-wide, uptake in the Japanese domestic market has been substantially lower than in the rest of the world. Sweden and Germany had figures of 98 and 81 percent respectively for ESC in new cars sold in 2008, while the figure for Japan was just 19 percent, up from 14 percent in 2007. The average across all European countries for ESC in new cars was 55 percent in 2008, up from 50 percent in 2007.

Nevertheless Kerr believes that the importance of ESC as a safety feature makes a strong case for making it mandatory. “It’s a significant safety feature, and unless you put it into the used import fleet, then fundamentally it won’t find its way through to the average motoring public. And certainly since the companies started fitting electronic stability control to the majority of the New Zealand new vehicles, we’ve been saying to the officials that we really need to get New Zealand into the 21st century.”

Imported Motor Vehicle Industry Association (IMVIA) Chief Executive David Vinsen believes any suggestion of making ESC compulsory on used imports to be without merit. “In terms of making it mandatory from 2015, the key point is that there will not be a pool of vehicles available in Japan to draw from. They’re not making and selling sufficient vehicles into their domestic fleet now, and in the last couple of years, to be

available in 2015 for us to buy five and six year old cars with ESC. It’s just a physical impossibility.

“If it was made mandatory in say two years time, the new car guys would just specify it and that would be that, they would just have to put their costs up. They could do it. But of course you can’t retrofit it to five year old cars in Japan.”

Vinsen believes that if ESC were made compulsory for used imports, the net effect for road safety would be negative. “Research done by the New Zealand Institute for Economic Research (NZIER), commissioned by the IMVIA and the Motor Trade Association (MTA), showed that when you impose these sorts of restrictions –particularly around exhaust emissions, but the principle maintains – that if restrictions are imposed it limits the numbers of fresh vehicles coming into the fleet, so the fleet will naturally get older.

“In fact, the ESC suggestion is completely at odds with the Ministry of Transport’s other proposal, which is to get the age of the fleet younger. And if you can work on getting the age of the fleet younger, you get a whole lot of benefits, not just specifically ESC, you get environment, health and safety, a range of different improvements.”

Kerr disputes the claim that import restrictions would lead to an older fleet. “We totally disagree with that, [the IMVIA] may say that, but fundamentally there’s no

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continued from page 1

cover story

Perry KerrDavid Vinsen

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Industry Leaders at Loggerheads over ESC

proof of that at all. In fact if you look at the changes in registration, they continue on, we change vehicles every three years on average. The numbers aren’t and haven’t been influenced by things like the emissions standards, it’s just a rubbish story that the IMVIA like to run. There’s no factual proof to that story at all, it’s just totally false and misleading.”

Nor does Kerr believe that were ESC to be made mandatory, used car importers would have to much trouble finding stock. “There is stock over there, they’d just have to be more choosy about what they pick. 15 years ago they were pointing the finger at the new vehicle industry, for how great they were with air conditioning units and electric windows. Well now we’re saying, ‘here’s a safety feature that basically should be in all vehicles, so get real’.

“It’s not us saying it either, it’s the Government saying it. The import industry will basically have to come forward, they’re purchasing vehicles that are eight or nine years old on average, they’re just going to start having to purchase newer stock.”

However Vinsen disagrees. “This is just Perry Kerr, and his foreign-owned new vehicle manufacturers up to their old tricks again, trying to use a Government proposal for market domination for their own products. It would be anti-competitive. The market should dictate, and people should

buy the vehicles they want. Manufacturers and distributers in New Zealand should continue to specify their vehicles to higher and higher standards.

“If it went ahead as in the discussion document, and it were made compulsory from 2015, it would just stop all of used imports, which would mean a huge loss of not only jobs and businesses, but it would also mean that the New Zealand public would be stuck with the stock which is currently in the country at that time, and the fleet would get older and less safe at a very fast rate.”

The Motor Trade Association does not believe that ESC should be made mandatory, says Marketing and Communications Manager Ian Stronach, “MTA considers that the mandatory fitment of ESC to all new cars is something that the manufacturers themselves need to decide across their current and future model ranges. Like most safety features, it’s likely that ESC will, over time, become a standard feature anyway.”

On the potential consequences of ESC being made compulsory for used imports, the MTA hold a similar position to the IMVIA. Says Stronach, “We do not believe it is in the best interests of New Zealand motorists for ESC to be mandatory on all used imports. We understand it has a low call up rate for new vehicles in Japan, meaning fewer vehicles eligible for import and in turn likely

result in a significant reduction in the volume of used imported vehicles. This would be at the expense of cars that have safety equipment such as airbags, ABS, EBD and the like already fitted.

“Owners wanting to upgrade would find they had little choice in terms of what they could upgrade to, and thus remain in

their current vehicles – thereby defeating the whole aim of increasing the safety levels of the overall fleet.”

Whether the Safer Journeys discussion document is converted into a solid policy proposal remains to be seen. However the positions of the two Associations are already well defined.

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.

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new car buying patterns have shifted dramatically since 2004, according to the Motor Trade Association (MTA).

Segmentation data released by the association show that medium (2.0-3.0-litre) and large cars (3.0-litre and above) have lost significant market share, while small (1.3-1.5-litre) and light (1.6-2.0-litre) cars have gained.

According to MTA Marketing and Communications General Manager, Ian Stronach, several factors beyond petrol price increases have influenced buying patterns.

“Once the price of oil started its upward march in mid-2004, it was clear to most in the industry that larger would progressively be replaced by smaller. What’s actually occurred since then has been more complex than that, and thrown up trends and patterns that we doubt anyone saw coming.”

The current market segmentation guidelines for new vehicles were introduced in April 2004. Since that time, the price of petrol has risen from $1.15 a litre for 91-octane to $1.77, a rise of close to 55 percent.

Though large cars comprised 24 percent of total new car sales in 2004, in the first four months of this year they made up only 14 percent. The medium segment has dropped from 18 percent in 2004, to 14 percent this year.

“Large cars now form the smallest segment of the market. This is a dramatic turnaround in just a six year period, and one few would have been forecasting, at least not to that extent,” says Stronach.

New vehicle sales dropped across the recession, as businesses deferred fleet upgrades. Downsizing fleet cars was another consequence of the downturn, says Jack Gordon-Crosby, General Manager of GBS Supplycorp, a procurement service-provider.

“The move to smaller cars is a definite trend, and has been on-going. With the downturn, companies put the brakes on, with fleet sales dropping 30 – 35 percent.

“It’s slowly picking up, but it’s not a massive pick-up. And purchasing of large 3-4 litre vehicles has definitely had a big, big slowdown.

“There is a higher consideration for cars that are diesel, high-efficiency petrol engines, or just generally anything that is more efficient to run.

“It’s both a question of the initial cost of the vehicle, and the long-term running costs. But it’s more than that really, it’s the whole of life approach, you shouldn’t purchase something purely on its purchase price or the discount someone’s giving you.

“You should be considering

what the whole of the package means to your organization. I think there’s been a whole lot more consideration given to that, and therefore people are making far better sourcing decisions about the vehicles that ultimately fit their organisation.”

With sustainability an important part of corporate image, smaller cars can also establish a company’s environmental credentials, believes Gordon-Crosby.

“The banks are a really good example. They used to buy Maximas, Falcons and Commodores, now they’re buying things like the Hybrid Prius, the diesel Mondeo, and the diesel Skoda Octavia.

“Banks are always trying to leverage off those sorts of things, to create a greener more sustainable image, that they’re doing the right thing for the planet.

“And it’s not unique to the banks. All fleet operators are being a lot more savvy about what it is that they’re buying, because ultimately if they’re buying cars that are old technology or not purely efficient or safe, that’s going to have an impact on their bottom line.”

As the MTA notes, with larger cars tending to be much more profitable than smaller vehicles, the consequent fall in popularity can have a flow-on impact on

manufacturer and distributor profit levels, particularly for those brands that are more dependent on sales from this segment.

Nevertheless, at the same time some manufacturers have positioned themselves well to take advantage of the shift.

Todd McDonald, General Manager of Kia Motors New Zealand, recognizes that significant changes in the past five years have impacted on car buyers’ decisions in New Zealand.

However he believes that the growth in popularity of small cars is a result of more than just fuel prices, citing improved safety and design as important factors.

“It used to be said that you couldn’t sell a small car in this country because new car buyers were only interested in larger models, but that has changed for good.

“The reasons have not just been about the cost of fuel and the purchase price of the vehicle itself, but also in key changes to the vehicles themselves.

“One of the biggest changes has been the improvement in safety standards, whereby small cars now have the same sort of technology and protection that used to be found on larger and more expensive cars.

“Kia Motors was among the first to introduce Electronic Stability Control and multiple airbags

Perceived efficiency gets buyers’ nod

news

increasing used import arrival numbers in the second half of the financial year contributed greatly to a turn around for Vehicle Inspection New Zealand (VINZ).

General Manager Frank Willett says that arrival volumes rose dramatically from September – adding to

modest increases in the group’s retail WoF and CoF services, helping to deliver a better than expected result.”

In its annual report released this week, VINZ reported a 12 percent revenue increase to year end 31 March, helping the company achieve a net profit after tax of $1,112,000.

Chairman Ken Worsley says this is a sharp contrast to the previous year’s loss of $615,000 and very pleasing for the directors in VINZ’s first year as an investor owned company.

In June 2009, VINZ changed from a co-operative company to become investor owned.

Worsley says the result was

VInz delivers outstanding resultKen Worsley

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www.autofile.co.nz | 9

Perceived efficiency gets buyers’ nod

Take us for a test drive...We realise not every person fits standard vehicle finance criteria. That’s why at Avanti Finance we base each application on the client’s individual profile.

Now there’s an alternative to get more customers on the road with approved finance deals.

So take us for a test drive.

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www.avantifinance.co.nz

news

to small cars in New Zealand, which helped to change the consumer’s mindset. We benefitted considerably from that decision.

“Similarly, when fuel prices rose, Kia was well-positioned to take advantage with a range of fuel-efficient vehicles that matched the expectations and tastes of the new car buyer – we were at the forefront of the introduction of high technology diesel engines in small cars, for instance.

“And when the financial crises struck, Kia was already well down the track with a programme to redevelop our entire model range to ensure that we were in tune with the tough economic times.”

One result that may have surprised some, and seems to go against the grain, is the persistent popularity of Sports Utility Vehicles (SUVs), which have made up more than 25 percent of the new car market this year. SUV purchases are largely fueled by private buyers, who make up 73 percent of this segment.

This growth is partially-driven by a lack of used imports stock; new emissions regulations which came into force at the beginning of 2008, and increased buying competition in Japan, has seen the number of used imports available decline.

John Oxley, editor of 4WD Magazine, says the technical

0%

5%

10%

15%

20%

25%

30%

35%

2004 2005 2006 2007 2008 2009 04/10

Segment as % of New Passenger Market

Light Small Medium Large SUV

Supplied by MTA

VInz delivers outstanding result Frank Willet

development of the SUV in recent years has made growth in the segment a global trend.

“The ordinary, low-ratio, bush-bashing SUV is dying out, and is being replaced by a more efficient version, which has got 4WD, but it doesn’t have low-ratio, it has electronic add-ons that make it a little bit off-road capable.

“These new vehicles are not nearly as heavy on fuel as the old ones, they are usually about as good on fuel as a big sedan or station wagon.

“The other thing is that they’re very user-friendly for families. A lot of them have seven seats, you can pack a lot of luggage, people sit high so the kids can see around. They don’t take up a lot of road-space.

“Another feature is that for a

lot of people, especially in New Zealand’s aging population, it’s a lot easier to get in and out of a small SUV than it is to get out of a low-slung car. So it’s versatility more than anything else.

“There’s also a perception that they’re safer and stronger, which isn’t necessarily the case, but perception is everything.”

As Oxley notes, SUVs are ubiquitous in the more upmarket suburbs in New Zealand as well as around the world. “Fashion obviously comes into it as well, it’s hugely fashionable to have an SUV. It’s not just New Zealand, it’s Cape Town, London, even Paris.”

With efficiency increasing, and with new smaller SUVs on the market, Oxley expects the SUV to maintain and consolidate its current popularity.

assisted by utilisation of tax losses not recognised in the 2008/9 year.

“If results were adjusted for normalised income tax, the profit would still be a credible $884,000!”

A partially imputed final dividend of 15 cents a share was paid to shareholders on the 14 May 2010.

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News in brief

To adverTise here conTacT:

Vehicles wanted

Buying now

0508 288 863021 455 775

[email protected]

BRETT HARRIS 029 293 1232www.farmerautovillage.co.nz

BUYING NOW

FARmER AUTOvIllAGE

Phil Wills 021 877 [email protected]

Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ.

ALWAYS BUYING ANY VEHICLE OVER $500 CONSIDERED

AUCKLAND VEHICLE CONSULTANTSCONTACT OUR STAFF TODAYAdam Winter ph: 021 635 352 e: [email protected] Kane Owen ph: 021 356 300 e: [email protected]

Paul Curin

0274 333 [email protected]

We are always looking to purchase NZ NeW cars aNd commercials

News briefs

To adverTise here conTacT:

Vehicles wantedBuying now

Paul Curin

0274 333 [email protected]

We are always looking to purchase NZ NeW cars aNd commercials

09 361 2346021 927 941

[email protected]

Wanted 2003 onwards HSV and Commodore,NZ new Suzuki, Nissan and Mazda product.

Call Daryn Pennington 067594586 direct, [email protected] or 0274 496499

BRETT HARRIS 029 293 1232www.farmerautovillage.co.nz

BUYING NOW

FARmER AUTOvIllAGE

Phil Wills 021 877 [email protected]

Honda, Mercedes Benz, & Mitsubishi. We purchase NZ new cars & commercials. All makes & models. Anywhere in NZ.

Volvo deal – doneIt’s been on-again, off-again, and this time it looks as if the 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 will continue to supply powertrains, stamping and other parts to Volvo after the sale.

Chrysler reopens yardsChrysler Group, reversing an earlier stance, says it will offer to reinstate 50 closed US dealerships within the next few days. Letters of intent will be sent to 50 of the estimated 400 rejected dealerships that have applied to get their franchises back through arbitration, Chrysler says in a statement. They “are in locations that offer customer service bene� ts and will have limited adverse impact on the dealers within our current network,” says Chrysler. The National Automobile Dealers Association says “it is a move in the right direction”.

Toyota supplies MazdaMazda Motor Corp will introduce a midsize hybrid vehicle by 2013 based on core components supplied by Toyota Motor Corp, the Nikkei Business Daily reports. The two automakers reached an agreement under which Toyota will supply the Toyota Hybrid System II (THS II), currently used in the third-generation Prius. The deal will enable Mazda to tap the growing demand for hybrids sooner than otherwise possible. For Toyota, the arrangement will help lower related production costs through economies of scale.

Fiat wants moreFiat CEO Sergio Marchionne says the Italian automaker will increase its stake in Chrysler to 35% within two years. The � rst 5% increment could come as early as this year after Chrysler begins making engines for the Fiat 500 in Dundee, west of Monroe. The subsequent two purchases will depend on increasing Chrysler’s distribution outside the US and assembling a new fuel-ef� cient car in the US, he says.

Driver magazine soldFairfax Magazines has purchased Driver magazine and will merge it with New Zealand Autocar from the May issue. John Baker, of former Driver publisher Tangible Media, says: “The publishing landscape has changed and it became clear to us that the market in New Zealand was no longer able to support two magazines devoted to new cars.”

news

| www.auto� le.co.nz8

news

Changes to Driver Licensing FeesDriver licensing fees have been changed, correcting what Transport 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 the gap between revenue and costs has steadily grown.”

While fees for 22 services will increase, including sitting learner, restricted and full license tests, fees for 19, including the license renewal fee, will decrease. Four fees, including those for drivers aged 75 years and older, will remain unchanged.

In addition, three new fees will be introduced. A license 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.

• License renewal fee: Now $44.30, decreasing to $43.00

• Learner license test fee: Now $79.00, increasing to $91.90

• Restricted license test fee: Now $88.20, increasing to $105.80

• Full license test fee: Now $115.10, increasing to $133.20

Conviction for Vehicle Finance Company A small Auckland-based car finance company, Dolbak Finance Limited has pleaded guilty to breaching the Credit Contracts and Consumer Finance Act (CCCF Act) and the Fair Trading Act in relation to car loan contracts.

A Commerce Commission investigation found that Dolbak Finance Limited’s car financing contracts did not comply with the CCCF Act, as they did not accurately disclose the annual interest rate charged on the loans. The Commission’s investigation also found that in relation to contracts entered before April 2007, Dolbak Finance Limited misrepresented its right to enforce the terms of the contracts, a breach of the Fair Trading Act.

In 2007, the Commerce Commission prosecuted the partners in Dolbak Finance, Anthony Baker and David Dolbel for breaches of both the CCCF and Fair Trading Acts, for failure to provide initial disclosure in relation to 99 customers who had taken out car loans. Both partners pleaded guilty to 22 charges each and were convicted and fined.

Dolbak Finance Limited, which took over the car loan contracts from Dolbak Finance in April 2007, did not correct the lack of disclosure and took action to enforce the contracts of 14 of the affected customers, including issuing repossession notices and proceedings to collect payments. The affected customers included those for whom Dolbak Finance was originally convicted.

Dolbak Finance Limited was fined a total of $2000 in the Auckland District Court. In sentencing, Judge Cunningham noted that the level of fine in this case should not be taken as precedent by other creditors, as it took into account the particular circumstances of the creditor’s situation, in that they are still paying off the original fines.

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new cars

Mitsubishi is playing the fuel economy and low emission hands with its five-model ASX (Active Smart Crossover) compact SUV range that arrives here in August.

It’s offering two engines, the 2.0-litre DOHC MIVEC petrol and 1.8-litre DOHC MIVEC intercooled turbo diesel, a choice of two-wheel drive and four-wheel drive and standard and Sport specifications.

Mitsubishi quotes fuel use and CO2 figures of 7.9 litres/100km and 184 grams/km for the petrol 2WDs, with the petrol 4WD managing 8.1

litres/100km and 188 g/km. Diesel Sport models are said to

be good for 5.9 litres/100km and 155g/km.

The ASX offers an SUV-like high ride height, Bluetooth connectivity on Sport models, one-touch engine starting and lightweight impact-resistant front guards. Frontal styling follows the large rectangular grille theme debuted by the Lancer Evo X.

The five models range from the LS 2WD at $35,490 to the D4 Sport Manual 4WD at $45,990.

Volkswagen group has bought a 90.1 percent stake in iconic design house Italdesign Giugiaro.

VW has bought the brand name rights and patents through the Group’s Italian subsidiary Lamborghini Holdings. The Giugiaro family retains the remaining shares.

The headquarters of Italdesign, which has 975 employees and 800 CAD workstations, is situated in Moncalieri, 15 km south of Turin,

in northern Italy. Established by Giorgetto

Giugiaro in 1968, the company has worked with a large number of European manufacturers, including Lamborghini, BMW, Audi, Alfa Romeo and Fiat, to name but a few.

Giugiaro also penned the design for Volkswagen’s 1974 Golf Mk1, the heavily influential model that across six generations has been Volkswagen’s best selling model,

and the third-highest selling model of all time, with over 25 million having been built by 2007.

VW boss, Dr. Martin Winterkorn, says Italdesign, led by Giugiaro, “has been instrumental in shaping the face of the automobile industry worldwide. As the creator of the Golf I, Giugiaro laid a new foundation for Volkswagen design in the 1970s.

“The Volkswagen Group will be

continuing its model initiative over the coming years and will benefit from the capacity and competence of Italdesign,” says Winterkorn.

Giugiaro is currently working on the planned Volkswagen Up! model family, which is likely to be Volkswagen’s flagship brand over the decade. The Up! Model is due to be released 2011, with E-Up!, VW’s first mass-produced electric car, to be released in 2013.

nissan will sell only one version of its revised 2010 Pathfinder mid-sized, seven-seater SUV in New Zealand.

The 2010 model lists at $76,800 and has a specification based on the previous upmarket Ti, with turbodiesel motor and five-speed automatic gearbox.

The 2.5-litre engine is 11 percent more powerful and torque lifts by 47Nm to a healthy 450Nm which will ensure good towing ability. Nissan says fuel use drops to 9.0 litres/100km, a 1.3 litres/100km fall.

The new Pathfinder is more

rounded, with new bonnet, bigger grille, restyled bumpers and sleek Xenon headlights. It rides on 17-inch alloy wheels and has front foglights and folding door mirrors.

Inside, there’s leather upholstery, chrome highlights, more user-friendly switchgear, Bluetooth phone connectivity and an MP3-compatible six-disc in CD sound system

ESP, hill-descent control, hill-start assist, ABS with EBD are standard, along with six airbags and three-point seatbelts for all seven occupants.

VW acquires majority holding in Italdesign

VW Up! Lite Concept2010 VW Mk1 Golf Ltd Edition

Compact Mitsi crossover for New Zealand

Nissan cuts Pathfinder range to one

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nothing i like better than a Good Drive. Get into the car and head for the horizon and when you get there, keep on going

In the past month I have driven from Auckland to Dunedin and back — twice! As well as sundry runs like Auckland to Taihape and back.

I’ve developed a specific route and a timetable for these drives — as well as a specific way of driving. I set cruise control on 106/7km/h and develop a rhythm.

There was a stage when I collected speeding tickets in sufficient numbers to hit the 100 points twice and had to surrender my license to the polite policeman who came to the door. But, with age comes wisdom and I have now largely learned that it’s easier to play their game. A couple of weeks ago, I blotted my clean three year old record — I got the red and blue flashing lights in my mirrors as I exited Ngaruawahia on the back road late-ish one night. I hadn’t waited until I cleared the 50km/h zone before accelerating.

He was a nice man — but a freshly arrived Pom who didn’t have a clue where my new home town of Oamaru was.

So, I like driving, but what do I think of Police Superintendent Paula Rose’s idea of reducing the 10km/h “tolerance” to just four km/h over

Queen’s Birth Weekend? Just three words for it. Stupid. Stupid. Stupid.

The cop line is that it’s an experiment, but if it proves successful, it will become policy.

If she was a man I’d accuse her of suffering from the Small Willie syndrome and likes being

a bossy-boots to assert her authority. His muscle flexing and money grubbing.

Rose’s move comes after one of the worst road toll records last Easter for a long time and a time when the Police said they were at a loss

to explain it as neither speed nor alcohol were found to be factors in most of the crashes. So they scrambled around and found something new to blame — impatience.

It might be new to the Police, but it’s not new to tens of thousands of road users.

Police measures have turned us into a nation of drivers who have lost the ability to pass a slower vehicle in front. Years of dumbing down means most of us are simply now content to lower our speed and play follow-the-leader when we come up behind a slower vehicle. And then another comes along and joins the line and another and another until we have a mob of sheep, travelling single file along the road with their brains in neutral.

Eventually someone will come along who isn’t brain-dead and they get impatient. The result is inevitably risky passing.

Rose’s dumb idea, if applied evenly and across the board, means that those Big Rigs that now travel at 100 – 105km/h and aren’t the total pain in the bum they could be, will now be travelling at 94km/h and thus the impatience level among following motorists will be even higher. Result? More risky overtaking. More crashes. More deaths. Silly idea Paula Rose. Silly! 

... impatience. It might be new to the Police, but it’s not new to tens of thousands of road users.

Upfront with Allan Dick

aussie auction house Shannons’ prediction that a 1971 Ford XY Falcon GT-HO Phase III would sell for a third of a million dollars became fact at its May 31 sale in Melbourne.

After a fierce bidding war, the fully-restored Monza Green sedan, which is believed to have had six owners from new and had 107,000 miles (172,000km) on the odo, sold for $A331,000, which was above its pre-sale guiding

range of $260,000-$320,000. Bidding started at $A260,000

and rose in $10,000 leaps before ending in a $1000 slugging match. A telephone bidder bought the car.

A left-hand drive 1961 Chevrolet Corvette Convertible that until two years ago was owned by rock star Alice Cooper, sold for $A78,000, complete with Fender Squier Stratocaster guitar signed by Cooper.

Classic Falcon sold for $330,000

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disputes

 

   law    .  bd

   

   law    .  Problem solver bd

Bruce Dell Law – “problem solver”

autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on the lessons to be learned from past Motor Vehicle Disputes Tribunal casesIf you require legal advice give Bruce a call on 09 570 5036

Bruce Dell Law – “problem solver”Bruce Dell has been closely associated with the auto industry for 37 years, during this time he has handled many complex legal issues on behalf of dealers both in Auckland and Palmerston North

autofi le are delighted to have Bruce as part of the Autofi le team advising our readers on past Motor Vehicle Disputes Tribunal cases. If you require legal advice give Bruce a call on 09 570 5036

Purchaser stuck with Commodore

BackgroundOn December 17, 2009 the purchaser bought a 1997 Holden VS Commodore for $4500 from the trader.

The purchaser has purported to reject the vehicle under the Consumer Guarantees Act 1993 (“the Act”) because she said it had a serious fault, namely a faulty ignition system.

The trader said the purchaser was not entitled to reject the vehicle because the fault in the ignition system was not a failure of substantial character.

The evidenceThe salesman informed his CEO that the purchaser had requested repairs to be done. The CEO told the salesman that the trader would not agree to do any of the work on the vehicle and that if that was not acceptable the trader was willing to rescind the VOSA. Unfortunately the salesman deliberately failed to convey that instruction. He gave as his reason for not doing so that “he wanted to get through Christmas”.

Instead the salesman completed the VOSA with his signature as agent for the trader and the date on which the purchaser’s offer was accepted by the trader.

On December 23 the purchaser said she had stopped the vehicle and had difficulty starting it because the ignition key would not turn. The purchaser called out a mobile mechanic who sprayed a lubricant in the ignition lock which enabled the

vehicle’s ignition to operate. The next day the purchaser gave evidence that she was driving the vehicle and her children at about 11pm that night when she stopped the vehicle to talk to her father. When she attempted to restart the vehicle the ignition lock would not turn and the steering wheel remained locked. The purchaser had the vehicle towed back home.

Unfortunately the purchaser did not instruct the mechanic to tow the vehicle back to the trader so that the ignition and steering lock could be repaired. Instead the mechanic, without the purchaser’s consent, had the ignition lock replaced and repaired the steering lock and invoiced the purchaser $826.31. The insurer declined the purchaser’s claim for the repair costs for reasons which were not adequately explained to the tribunal.

The purchaser’s partner telephoned the salesman and informed him of the faulty ignition but he said the salesman did not want to know about the matter.

The trader’s CEO said the repairs to the vehicle’s ignition had been completed before the purchaser informed the trader of the problem and hence the trader should not be liable.

The vehicle remained with the mechanic because the purchaser, a beneficiary, and her ex-partner, an opossum trapper, claimed they had no money to pay for the repairs. The trader’s CEO said he had made various offers to try and resolve the matter, without success.

The tribunal’s decisionThe tribunal was in little doubt that the purchaser did not contact the trader and require him to remedy this fault before having it repaired. Hence, regrettably, the purchaser was not entitled to recover from the trader the cost. This was because s.18(2)(a) of the Act provided that a purchaser must “require” a supplier to remedy any faults and give the supplier a reasonable time in which to do so before going elsewhere to get the goods repaired.

The tribunal was however satisfied that the purchaser made the trader aware of and required him to remedy the other faults. The trader had an obligation under s.18(2)(a) of the Act having been required to remedy those faults, to do so within a reasonable time of having the vehicle returned to him for that purpose. If the trader did not do so or did not do so within a reasonable time, the purchaser may then either have the faults repaired elsewhere at the trader’s cost or reject the vehicle in terms of s.18(2)(b) (i) or (ii) of the Act. As soon as the purchaser paid the account and uplifted the vehicle she should take it to the trader with a list of the faults she wanted fixed.

Meanwhile, the tribunal was not persuaded by the purchaser that the fault with the ignition switch and steering lock was a failure of substantial character because first, the vehicle would probably still have been acquired by a reasonable purchaser aware of that

fault and second, the fault did not make the vehicle unsafe; it simply made the vehicle unable to be driven. Accordingly, the purchaser was not, in the tribunal’s view, entitled to reject the vehicle.

Bruce Dell’s CommentThis purchaser bought a 1997 Holden vehicle for $4,500.00. The purchaser tried to reject the vehicle as having serious faults to justify a substantial fault and to justify cancellation of the contract. Pleasingly, the Judge did not accept the evidence of the purchaser. It would seem again that the dealer was not given the opportunity of repairing the vehicle.

 At the end of the day though, the Tribunal was not persuaded by the purchaser that the fault with the ignition switch and the steering lock were failures of substantial character.  The faults did not make the vehicle unsafe.

 On a note of caution, dealers should well acquaint themselves with the Fair Trading Act provisions and Consumer Guarantees Act provisions as these decisions generally come back to provisions of these Acts and dealers’ obligations thereunder.

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 deemed to be of ‘substantial character’.

Where:Motor Vehicle Disputes Tribunal, Rotorua.

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disputes

Autofile is now published twice per month and sent COMPLIMENTARY to over 1400 auto industry and associated businesses throughout New Zealand

If this is your target market - wE REACh IT The voice of the auto industry

Trader loses coolBackgroundOn August 21, 2009 the purchaser bought a 2002 Toyota Corolla for $10,500 from the trader. The purchaser sought to recover $1080 which she had paid to replace the vehicle’s tyres ($480) and repair its air conditioning and front CV joints ($600). The purchaser said that at the time of sale the vehicle was not of acceptable quality as guaranteed by the Consumer Guarantees Act 1993 (“the Act”).

The trader said first, that the tyres were of acceptable quality at the date of sale and did not need to be replaced and secondly that he was willing to repair the air conditioning or to repurchase the vehicle from the purchaser.

The evidenceThe day after she bought the vehicle the purchaser noticed that the air conditioning was not working and the vehicle’s tyres were badly worn. The purchaser said that when she telephoned the trader to ask him to repair the air conditioning she was told that trader would be prepared to look at the vehicle but that any repairs would be at her cost. The trader refused to replace the vehicle’s tyres. The purchaser’s son gave evidence that he had also telephoned the trader and was told the same thing.

The purchaser received an estimate of $636, plus GST, to replace the tyres, $794, plus GST, to repair the CV joints and $174, plus GST, to repair the air conditioning. The vehicle had then been driven a further 5230km since the purchaser had bought it.

On January 17 the purchaser

and her son took the vehicle back to the trader and attempted to get his agreement to replace the tyres, repair the CV joints and fix the air conditioning. The trader refused to do any repairs to the vehicle and the discussion between the parties became heated, culminating in the trader’s director ordering the purchaser and her son off the trader’s yard.

On January 20 the purchaser bought four new tyres for $480 and on or about January 25 she had her mechanic repair the vehicle’s air conditioning sensor on the compressor and replace both front CV joints for $912.38 of which the purchaser paid $600 and her mechanical breakdown insurer paid $312.38.

The trader heard that the purchaser was having the vehicle repaired and sent the purchaser a letter in which he asked her to bring the vehicle back to allow the trader to repair it and the trader would supply a loan car. The letter said that if the purchaser was not happy with the repairs the trader was willing to refund her the purchase price. The purchaser said that the vehicle was already in the workshop being repaired when she received the trader’s letter.

The tribunal’s decisionThe tribunal did not consider that a reasonable purchaser of a seven-year-old vehicle sold for $10,500 with only 66,770km on its odometer would consider it acceptable that the vehicle’s air conditioning and CV joints required repairs within five months of sale. Hence the tribunal found that the vehicle did not, at the time

of sale, meet the guarantee of acceptable quality in s.6 of the Act because it was not as durable as a reasonable purchaser of such a vehicle would regard as acceptable.

The purchaser also claimed that the vehicle’s tyres were badly worn at the time of sale but failed to produce any evidence to support that claim. Accordingly the tribunal was not satisfied the tyres were defective at the time of sale.

The tribunal understood from the purchaser’s evidence that at that time the trader refused to remedy any of the vehicle’s faults, probably because the trader considered that after five months from the time of sale he had no further responsibility to do so.

The tribunal found that the purchaser did require the trader to remedy the vehicle’s air conditioning and CV joint faults on January 17 but the trader refused to discuss the matter with her. Accordingly the tribunal found the purchaser did “require the supplier to remedy” the failures as she must do by s.18(2)(a) of the Act but that the trader refused to do so. Accordingly, the purchaser then became entitled to take the vehicle to have the faults remedied elsewhere, which did on January 25.

The purchaser was able to recover her repair costs from the trader and the tribunal considered the sum she paid to have the air conditioning and CV joints replaced of $600 was reasonable and ordered the trader to reimburse the purchaser with that sum. The tribunal did not accept that the trader had any responsibility to reimburse the purchaser with the

cost of the four new tyres for the reasons stated earlier.

Bruce Dell’s CommentThis case involved a sale of a 2002 Toyota vehicle for $10,500.00 where the purchaser subsequently sought recovery of $1,080.00 to replace tyres costing $480.00 and $600.00 for air conditioner and front CV joints.

The car dealer seems to have adopted a reasonable approach in offering the purchaser to bring the car in for repairs or have the sale price refunded.

Surprisingly, I believe in this case, the dealer did not consider that a vehicle for $10,500.00 should require such work months after the sale. A warrant of fitness was presumably obtained prior to the sale so I am amazed that the dealer lost on that count. 

The Tribunal, it would seem, was comfortable with the state of the tyres as at the date of the sale. The air conditioning and CV joints were replaced at a cost of $600.00 and that was at the cost of the dealer.

You can only ponder the logic of this decision but basically, it comes down again to the fact that dealers have to be super cautious and dot the I’s and cross the T’s so far as sale Agreements are concerned and what warranties that are provided.

Why:The purchaser wanted to be reimbursed for new tyres and repairs.

Ruling:The dealer dodged the tyre bill but was liable for the $600 it cost the purchaser to repair the other items.

Where:Motor Vehicle Disputes Tribunal, Auckland.

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Trinidad V5Loading Osaka 1 Jun, Nagoya 2 Jun, Yokohama 3 Jun

arriVing Brisbane 22 Jun, Auckland 26 Jun, Wellington 28 Jun, Lyttelton 30 Jun

Europeon Emerald V41Loading Osaka 16 Jun, Nagoya 17 Jun, Yokohama 18 Jun

arriVing Brisbane 1 Jul, Auckland 6 Jul, Wellington 8 Jul, Lyttelton 9 Jul

isolde V2Loading Osaka 28 Jun, Nagoya 29 Jun, Yokohama 30 Jun

arriVing Brisbane 18 Jul, Auckland 22 Jul, Wellington 25 Jul, Lyttelton 26 Jul

TBnLoading Osaka 15 Jun, Nagoya 16 Jul, Yokohama 17 Jul

arriVing Brisbane 30 Jul, Auckland 4 Aug, Wellington 6 Aug, Lyttelton 7 Aug

Madame Butterfly V2Loading Osaka 29 Jul, Nagoya 30 Jul, Yokohama 31 Jul

arriVing Brisbane 19 Aug, Auckland 24 Aug, Wellington 26 Aug, Lyttelton 28 Aug

Armacup FP-June10.indd 1 9/06/10 7:12 PM

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industry statistics

Around the countryCar sales - May 2010

New PlymouthNEW: 82 2009: 83 1.2%

UsEd: 133 2009: 81 64.2%

AucklandNEW: 1988 2009: 1606 23.8%UsEd: 3619 2009: 2566 41.0%

HamiltonNEW: 323 2009: 260 24.2%UsEd: 469 2009: 369 27.1%

WanganuiNEW: 56 2009: 113 50.4%

UsEd: 51 2009: 36 41.7%

WhangareiNEW: 78 2009: 114 31.6%

UsEd: 127 2009: 85 49.4%ThamesNEW: 34 2009: 30 13.3%UsEd: 41 2009: 36 13.9%

TaurangaNEW: 217 2009: 142 52.8%UsEd: 280 2009: 246 13.8%

RotoruaNEW: 128 2009: 158 19.0%UsEd: 60 2009: 55 8.3%

Palmerston NorthNEW: 129 2009: 121 6.6%

UsEd: 189 2009: 113 67.3%

DunedinNEW: 108 2009: 103 4.9%UsEd: 210 2009: 108 94.4%

InvercargillNEW: 63 2009: 45 40.0%UsEd: 70 2009: 68 2.9%

WellingtonNEW: 524 2009: 433 21.0%UsEd: 671 2009: 466 44.0%

OamaruNEW: 6 2009: 4 50.0%UsEd: 12 2009: 10 20.0%

GisborneNEW: 42 2009: 29 44.8%UsEd: 45 2009: 34 32.4%

MastertonNEW: 38 2009: 17 123.5%UsEd: 38 2009: 23 65.2%

TimaruNEW: 37 2009: 25 48.0%UsEd: 87 2009: 37 135.1%

NapierNEW: 120 2009: 94 27.7%UsEd: 159 2009: 90 76.7%

ChristchurchNEW: 542 2009: 511 6.1%UsEd: 926 2009: 659 40.5%

BlenheimNEW: 38 2009: 41 7.3%UsEd: 42 2009: 24 75.0%

NelsonNEW: 47 2009: 42 11.9%

UsEd: 122 2009: 78 56.4%

WestportNEW: 6 2009: 1 500.0%

UsEd: 5 2009: 4 25.0%

GreymouthNEW: 10 2009: 7 42.9%

UsEd: 25 2009: 23 8.7%

Total New Cars4616 2009: 3979 16.0%

Total Used Cars7381 2009: 5211 41.6%

16 | www.autofile.co.nz

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Among new passenger cars Suzuki’s Swift has continued its remarkably long-lived success in New Zealand, to be the country’s best-selling new car in May.

The small five-door largely unchanged since its introduction five years ago, reinforced the enduring appeal of its styling, competitive pricing and good packaging by racking up 249 sales.

Hyundai’s i30 took second place with 217 sales in May, its sharp styling and good specification striking a chord with buyers.

But the Kiwi love affair with the Toyota Corolla still thrives, the perennial favourite taking third place with 199 sales.

Year to date, the Corolla retains top spot ahead of the Swift and Holden’s Commodore, the big Aussie hanging on despite the buying trend towards smaller cars.

Ford was the month’s

best-selling brand with 571 registrations, Toyota was second (557) and Hyundai third with 486. Year-to-date, Toyota leads from Holden and Ford.

May’s total new-car registrations (4616) were 16 percent ahead of May 2009, and the year-to-date total of 24,496 is 14 percent up on 2009 and slightly ahead of projections.

New commercial vehicle sales are showing an even stronger improvement despite the tight market. May registrations of 1801 were the best monthly total for 11 months and 37 percent ahead of May 2009.

Toyota’s Hilux ute was the best-selling commercial vehicle with 477 registered, followed by the Nissan Navara ute (233) and the Toyota Hiace van (204)

Toyota’s 737 registrations gave it just over 40 percent of the commercial market, from Ford (241) and Nissan (237).

industry statistics

continued from page 1

Suzuki hatchback still selling swiftly

New Car Sales by Make May 2010

MAKE MAY 2010MArKEt

shArEMAKE MAY 2009

MArKEt shArE

FORD 571 12.37% TOYOTA 613 15.41%

TOYOTA 557 12.07% FORD 455 11.44%

HYUNDAI 486 10.53% HYUNDAI 392 9.85%

HOLDEN 480 10.40% SUZUKI 352 8.85%

MAZDA 416 9.01% MAZDA 350 8.80%

SUZUKI 409 8.86% NISSAN 303 7.61%

NISSAN 224 4.85% HOLDEN 270 6.79%

MITSUBISHI 198 4.29% HONDA 221 5.55%

HONDA 186 4.03% KIA 174 4.37%

KIA 177 3.83% VOLKSWAGEN 113 2.84%

SUBARU 174 3.77% SUBARU 100 2.51%

VOLKSWAGEN 153 3.31% MITSUBISHI 99 2.49%

MERCEDES 104 2.25% AUDI 90 2.26%

AUDI 101 2.19% BMW 82 2.06%

BMW 99 2.14% MERCEDES 75 1.88%

OTHERS 281 6.09% OTHERS 290 7.29%

totAl 4,616 totAl 3,979

Top New Car Sales by Model May 2010

MAKE ModEl MAY 2010 Ytd MAKE ModEl MAY 2009

Suzuki SWIFT 249 1328 Suzuki SWIFT 253

Hyundai I30 217 574 Toyota COROLLA 196

Toyota COROLLA 199 1,588 Mazda MAZDA3 172

Holden COMMODORE 167 1013 Hyundai GETZ 169

Ford FALCON 160 776 Holden COMMODORE 167

Holden CRUZE 159 851 Ford FALCON 137

Mazda MAZDA3 159 982 Ford MONDEO 121

Ford TERRITORY 143 n.a. Mazda MAZDA6 94

Mazda MAZDA6 138 719 Ford FOCUS 87

Ford MONDEO 118 538 Toyota YARIS 85

Ford FIESTA 95 403 Honda JAZZ 80

Toyota HIGHLANDER 92 n.a. Honda ACCORD 75

Mitsubishi OUTLANDER 85 506 Hyundai I30 74

Holden CAPTIVA 84 425 Nissan TIIDA 73

Hyundai SANTA FE 80 410 Toyota HIGHLANDER 73

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18 | www.autofile.co.nz

industry statistics

Top Used Passenger Sales by Model May 2010

MAKE ModEl MAY 2010 MAKE ModEl MAY 2009

Subaru LEGACY 353 Subaru LEGACY 238

Toyota COROLLA 350 Toyota VITZ 236

Mazda ATENZA 273 Toyota COROLLA 161

Toyota ESTIMA 249 Honda ODYSSEY 160

Mazda DEMIO 218 Mazda ATENZA 156

Honda ODYSSEY 197 Toyota ESTIMA 154

Toyota VITZ 194 Mazda DEMIO 148

Subaru IMPREZA 185 Nissan PRIMERA 141

Honda CIVIC 182 Subaru IMPREZA 124

Nissan PRIMERA 174 Nissan WINGROAD 123

Honda ACCORD 173 BMW 3 Series 113

Honda STREAM 171 Honda FIT 109

Mazda AXELA 167 Nissan MARCH 106

Nissan BLUEBIRD 141 Toyota PLATZ 99

Suzuki SWIFT 135 Toyota ALTEZZA 98

Honda FIT 115 Honda ACCORD 94

Mitsubishi LANCER 109 Nissan BLUEBIRD 89

Nissan WINGROAD 105 Honda CIVIC 86

Toyota ALTEZZA 103 Mazda AXELA 85

Volkswagen GOLF 100 Mazda FAMILIA 83

Used Passenger Vehicle Sales by Make May 2010

MAKE MAY 2010 MAKE MAY 2009

TOYOTA 1870 TOYOTA 1403

NISSAN 1115 NISSAN 834

HONDA 990 MAZDA 682

MAZDA 964 HONDA 618

SUBARU 627 SUBARU 408

MITSUBISHI 416 MITSUBISHI 274

BMW 296 VOLKSWAGEN 150

VOLKSWAGEN 219 BMW 150

SUZUKI 204 FORD 125

FORD 139 SUZUKI 114

AUDI 62 MERCEDES-BENZ 64

CHEVROLET 57 AUDI 63

PEUGEOT 53 PEUGEOT 41

MERCEDES-BENZ 50 HYUNDAI 37

CHRYSLER 42 VOLVO 34

HYUNDAI 42 CHEVROLET 29

VOLVO 40 CHRYSLER 25

JAGUAR 26 OPEL 21

DAIHATSU 20 HOLDEN 17

ALFA ROMEO 16 DAIHATSU 16

OPEL 15 SAAB 12

MINI 13 ISUZU 10

JEEP 12 ALFA ROMEO 9

RENAULT 12 JAGUAR 8

HOLDEN 11 LEXUS 6

ISUZU 10 RENAULT 5

LAND ROVER 8 PORSCHE 5

LEXUS 7 MINI 5

SAAB 6 LAND ROVER 5

DODGE 5 BUICK 5

SKODA 3 ROVER 4

BENTLEY 2 DODGE 4

CADILLAC 2 KIA 3

FIAT 2 DATSUN 3

LINCOLN 2 CADILLAC 3

MG 2 SMART 2

PORSCHE 2 MG 2

ROLLS-ROYCE 2 FACTORY BUILT 2

SMART 2 CITROEN 2

TRIUMPH 2 ASTON MARTIN 2

VAUXHALL 2 TVR 1

ASTON MARTIN 2 PONTIAC 1

ALVIS 1 OLDSMOBILE 1

AUSTIN 1 LVVTA 1

BUGATTI 1 LINCOLN 1

BUICK 1 LEYLAND 1

CITROEN 1 FIAT 1

KIA 1 DE SOTO 1

MERCURY 1 DE LOREAN 1

PACKARD 1

PONTIAC 1

totAl 7381 5211

Subaru Legacy and the Toyota range are still kiwi favourites when it comes to used vehicles

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industry statistics

New Commercial Sales by Make May 2010

MAKEMAY 2010

MArKEt shArE

MAKEMAY 2009

MArKEt shArE

TOYOTA 737 40.92% TOYOTA 447 34.02%

FORD 241 13.38% FORD 189 14.38%

NISSAN 237 13.16% HOLDEN 130 9.89%

HOLDEN 142 7.88% NISSAN 118 8.98%

MAZDA 97 5.39% MAZDA 70 5.33%

MITSUBISHI 87 4.83% MITSUBISHI 66 5.02%

HINO 37 2.05% HYUNDAI 51 3.88%

MITSUBISHI FUSO 34 1.89% ISUZU 38 2.89%

HYUNDAI 31 1.72% HINO 26 1.98%

MERCEDES-BENZ 30 1.67% MERCEDES-BENZ 24 1.83%

ISUZU 22 1.22% MITSUBISHI FUSO 19 1.45%

FIAT 19 1.05% FIAT 18 1.37%

VOLKSWAGEN 18 1.00% SUZUKI 17 1.29%

SCANIA 13 0.72% VOLVO 17 1.29%

SUZUKI 13 0.72% SCANIA 14 1.07%

OTHERS 43 2.39% OTHERS 70 5.33%

totAl 1801 totAl 1314

New Commercial Vehicle Sales By Model May 2010

MAKE ModEl MAY ‘10 MAKE ModEl MAY ‘09

Toyota HILUX 477 Toyota HILUX 1,601

Nissan NAVARA 233 Nissan NAVARA 803

Toyota HIACE 204 Ford RANGER 634

Ford RANGER 179 Toyota HIACE 567

Holden COLORADO 120 Holden COLORADO 515

Mazda BT-50 79 Mitsubishi TRITON 444

Mitsubishi TRITON 60 Mazda BT-50 289

Ford TRANSIT 36 Ford TRANSIT 183

Hyundai H1 31 Hyundai H1 133

Toyota HIACE 26 Mitsubishi L300 119

Toyota LANDCRUISER 26 Toyota HIACE 105

Mitsubishi L300 25 Holden UTE 76

Fiat DUCATO 17 Toyota LANDCRUISER 72

Mitsubishi CANTER 17 Mercedes SPRINTER 69

Ford FALCON UTE 16 Isuzu N SERIES 63

Used Commercial Vehicle Sales by Make May 2010

MAKE MAY ‘10 MAKE MAY ‘09

NISSAN 90 NISSAN 71

TOYOTA 57 TOYOTA 69

ISUZU 23 ISUZU 14

MAZDA 20 MITSUBISHI 9

MITSUBISHI 7 MAZDA 7

CHEVROLET 6 CHEVROLET 6

FORD 4 FORD 4

HOLDEN 4 DODGE 3

SUZUKI 4 VOLKSWAGEN 3

DODGE 3 CADILLAC 1

HINO 2 FACTORY BUILT 1

FACTORY BUILT 1 HINO 1

LAND ROVER 1 HONDA 1

MERCEDES-BENZ

1 SUBARU 1

STUDEBAKER 1 SUZUKI 1

totAl 224 totAl 192

Top 10 Selling Used Commercial Models May 2010

MAKE ModEl MAY ‘10 MAKE ModEl MAY ‘09

Nissan CARAVAN 40 Toyota HIACE 53

Toyota HIACE 35 Nissan CARAVAN 32

Nissan VANETTE 34 Nissan VANETTE 25

Isuzu ELF 19 Isuzu ELF 10

Mazda BONGO 18 Nissan ATLAS 10

Nissan ATLAS 13 Mazda BONGO 7

Toyota DYNA 7 Toyota TOYOACE 4

Toyota REGIUS 6 Dodge RAM 3

Suzuki CARRY 4 Isuzu FORWARD 3

Toyota TOWNACE 4 Mitsubishi DELICA 3

Toyota Hilux is Number One commercial vehicle for May

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20 | www.autofile.co.nz

industry statistics

Used Bike Sales By Make May 2010

MAKE MAY ‘10 MAKE MAY ‘09

HARLEY DAVIDSON 33 HONDA 40

HONDA 22 YAMAHA 24

YAMAHA 18 SUZUKI 19

SUZUKI 14 HARLEY DAVIDSON 14

MOPED 7 TRIUMPH 10

DUCATI 6 DUCATI 9

BMW 5 BMW 9

KAWASAKI 5 KAWASAKI 6

FACTORY BUILT 4 MOPED 5

KTM 3 APRILIA 4

MOTO GUZZI 2 VESPA 3

PIAGGIO 2 VICTORY 2

VICTORY 2 MOTO GUZZI 2

BOLWELL 1 LAVERDA 2

BUELL 1 KTM 2

GILERA 1 BUELL 2

LAVERDA 1 BSA 2

LVVTA 1 VINCENT 1

MOTORCYCLE 1 VILLIERS 1

MV AGUSTA 1 ITALJET 1

TRIUMPH 1 HYOSUNG 1

GEELY 1

ENFIELD 1

CAGIVA 1

totAl 131 totAl 162

New Bike Sales By Make May 2010

MAKE MAY ‘10 MAKE MAY ‘09

HARLEY DAVIDSON 62 SUZUKI 115

MOPED 61 MOPED 106

SUZUKI 59 HARLEY DAVIDSON 57

HONDA 38 HONDA 48

YAMAHA 38 YAMAHA 48

TRIUMPH 25 KAWASAKI 36

KAWASAKI 20 TRIUMPH 33

FACTORY BUILT 16 HYOSUNG 20

PIAGGIO 15 KEEWAY 20

KEEWAY 14 FACTORY BUILT 17

HYOSUNG 13 PIAGGIO 13

VMOTO 13 KTM 10

KYMCO 8 BMW 8

VICTORY 7 MOTORCYCLE 6

BMW 6 DUCATI 5

APRILIA 5 PGO 4

KTM 5 VESPA 3

MOTO GUZZI 3 SYM 2

MOTORCYCLE 3 LIFAN 2

DAELIM 2 HUSABERG 2

LIFAN 2 DAELIM 2

MV AGUSTA 2 PIONEER 2

PGO 2 APRILIA 1

VESPA 2 BUELL 1

BENELLI 1 MOTO GUZZI 1

BUELL 1 ZONGSHEN 1

CUSTOMBUILT 1 PEUGEOT 1

DUCATI 1 GILERA 1

GAS GAS 1 CAGIVA 1

GILERA 1

MOTO MORINI 1

SYM 1

totAl 429 566

Harley Davidson topped the charts in both the new and used bike sectors

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22 | www.autofile.co.nz

Autofile’s regular report focusing on the car sales market. Each issue we focus on a different part of New Zealand or a different market segment or niche, interviewing and seeking comment from local and specialist dealers.

It’s been cold and wet in Timaru as winter starts to bite, but there’s a generally optimistic mood among motor vehicle dealers spoken to by autofile.

Daytime temperatures in the South Canterbury hub have been single digit in early June, but though that’s probably decreased the level of foot traffic around dealers’ yards, relatively quiet mid-winter months are not out of the ordinary for the town’s auto retailers.

And there are signs that with the spring thaw, the car trade’s fortunes will be sunnier.

Even so, it’s not all doom and gloom in South Canterbury.

Take what’s happening at Timaru Motors for instance. The dealership at Washdyke on the main road into Timaru from the north holds Ford and Mazda franchises and also stocks an eclectic range of used cars – from its franchised brands through NZ-new cars from others manufacturers and Japanese used imports.

Prices are equally wide-ranging, from $5000 bargain cars to near-new.

Dealer principal Wayne Pateman says new vehicle

inquiries are very buoyant – “double what they are normally” – riding on the now traditional price and equipment special offers in conjunction with the National Fieldays at Mystery Creek, Hamilton.

Each year, Ford and other new vehicle franchises slug it out nationwide for an increased share of the market – especially in utility trucks – around the Fieldays.

The deals are backed by television, radio, newspaper and flyer advertising and are working well, Pateman says.

But he says new car sales have been good all year, with businesses buying Australian Fords and private buyers attracted by Mazda’s 2 and 3 with their unlimited kilometre

three-year warranty and three years free servicing.

That buoyancy isn’t mirrored in used cars. “I think they’re in a steady sort of pattern – not increasing but not decreasing.”

Timaru Ford saw a big sales jump in March, though April and May reverted to “a more normal level and June is showing signs of being similar, with a steady flow-on.”

The March spike came on the back of Pateman’s aggressive advertising campaign on radio and in the local newspaper. “I spent a lot of money on advertising in March and if you have a big budget and pump it into advertising, it works.”

The increased sales “proved to me that advertising works if you have good price reductions and you’re offering good specials.”

Pateman says Timaru Motors has widened its used car range to include a good selection of other makes, though it retains plenty of Fords and Mazdas to reinforce its position as the franchise holder and promote the two brands.

It’s a conscious move to increase traffic on the yard without undermining the company’s loyalty to its franchised brands, and it’s working.

“We have a mix of makes, models and prices, from very low-priced, $5000, upwards. We’re getting people in now who have trade-ins that we can keep on a franchised yard where in the past we would have sent them to another yard.

“We have 55 used cars and a quantity of those are Japanese used imports. We’ve seen an increase (on the Timaru Ford yard) in Japanese used imports in the last few months and I have to say that by having a variety for people to choose from, we’ve had good results.

“Those imports have been a good variety of makes and models and there’s certainly still a demand for them.”

Pateman says that by having a selection of used car makes and models to choose from Timaru Motors has become a one-stop shop. “It’s an attraction for people to come on to this yard.” It has also increased the firm’s chances of increasing its finance and warranty sales and vehicle servicing business.

“But we make sure we have a good selection of used Fords and Mazdas here because people come to this yard for that reason.”

Pateman says he thinks the car market is starting to pick up. “We’ve got a lot of inquiry for new vehicles further down the track, but it would be hard to crystal-ball the figures for used cars – will it continue for the rest of the year as it is now?

“There is certainly some activity in used cars but it’s not as good as what the new car sales are at the moment.”

The winter weather is having an effect. “I think that in the winter months, people don’t tend to come out to Washdyke and wander around; we don’t seem to have the foot traffic over the colder months.” That was especially true at Queens Birthday Weekend when the weather was very cold and rainy.

He sees both new and used cars selling strongly in August and September before GST rises.

The expected surge means dealers will need good stock levels. “When people are ready, they want to buy now, so you have to have vehicles available. You need to have adequate levels so customers stay on your yard; so you need a variety of colours, sizes and models.”

He sees the market quietening

down in October but lifting again in the lead-up to Christmas. “I think it will pick up again when people need to replace cars before the holiday season and will be prepared to pay the extra 2.5 percent GST.”

Henshaw Quality Cars at the southern edge of the Timaru

CBD likes to ensure its stock reflects the company’s name and its slogan, Focused on quality at a competitive price.

“We sell low-kilometre, very high-quality cars,” says Roger Patterson who started the company with Keith White in 1984. “And our customers come looking for that very thing. We’re in the $10,000-$15,000 bracket.”

Brands are across the board, and customers are largely people looking for low-mileage cars.

Patterson says that after more than 30 years in the business they’ve weathered recessions before.

“We’ve seen it all before. The market’s up and down but we’re not too stressed. You’ll get a couple of good weeks and a couple of quiet ones; it’s pretty stop/start.”

He says the Timaru used car market is “certainly down on what it was a couple of years ago when we had a huge year, but we’re up year-to-date, so there are signs of improvement.”

He’s not sure yet whether the upward trend is steady. “You think that it might be and then you hit a quiet patch and wonder.”

Patterson thinks the improvement will be “slow and

Plenty of optimism in Timaru

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steady…but it’s pretty hard to read at the moment.”

But he’s sure that businesses which come through the recession will be in better shape than when they went into it.

“We’ve pruned back excess overheads to be pretty lean and mean when we come out of it. So from that point of view I suppose it’s good for business.”

Patterson says the fortunes of the dairying industry have a strong impact on the Timaru car trade. “We found last year with dairy farmers than when milk prices dropped, they put their chequebooks away. As soon as Fonterra said the price was going up it made a big difference. As we speak, there’s a dairy farmer out (on the yard) buying a car. We’re starting to see a few of them coming in now. We’re reliant on farming down here in many ways.”

TraNZam saloon car ace and long-time Timaru dealer, Craig

Gilbert, now operates from the township of Temuka, north of Timaru after making a lifestyle choice and closing his high-profile car yard on the northern edge of Timaru city.

“I’ve always lived in Temuka and I decided to move out here and keep it more simple.”

Gilbert now stocks 30 cars on his compact yard in Temuka, and concentrates on cars that retail for less than $10,000. “That’s where the market is – $5000-$10,000.

He describes the South Canterbury used car market as “still fickle, still up and down.”

“Some weeks have been good and we’ve been going for it and then the next week, you’re doing nothing.

“And we’re struggling to finance people who have had a pothole in their histories.”

Gilbert says the strong Yen against the New Zealand dollar and the domestic demand for used cars in Japan makes buying new imported stock a struggle. “The stock isn’t available in Japan like it used to be and at this time of year the Japanese domestic demand is high coming into their summer.”

He says Australian cars have been selling quite well.

“But the biggest problem is maintaining your margin. The guys who need turnover are dropping their pants to get a deal and that hurts people who are trying to make a margin.’

However, he says there’s nothing to be too gloomy about. “I’m certainly doing my share” and the used car trade is “still dynamic, still great fun.”

“You can make a good living from it. If you do things right and treat people well, they’ll normally come around again.”

Gilbert predicts that in the face of a high Yen and weak NZ dollar, it’s inevitable that prices will have to rise; “but I don’t want to be the first to put them up, I can’t afford to be the first to do it.”

He predicts, though, that all dealers will see a lift in sale before the GST increase cuts in, but doesn’t think it will have a big effect over the full year.

“But it might help us to get

through the winter.”

Motor racing legend Leo Leonard is in the truck

business these days after decades selling cars in Timaru. “We’re totally truck, 100 percent truck,” says the man whose saloon car racing exploits made him a household name in New Zealand in the 1960s and ’70s. And business has been good.

“(Japanese truck) imports have been killed by legislation, so we’ve had to change tack. It’s not a problem, we just went back to our grass roots, buying and selling domestic trucks.”

Leo Leonard Motors specialises in trucks between two tonnes and 10 tonnes and in all configurations and never has fewer than 130 trucks on the yard.

Leonard met the economic downturn in typically forthright fashion. “When the ripples of recession were rumbling around the place, we didn’t get defensive. We went on the attack and increased our stock and selection and it’s paid off for us.

“I’m not saying that we haven’t noticed there’s a recession; the last couple of months have been the quietest we’ve had, but in saying that we’re still getting away with it.”

Leonard says he’s noticed over the years that the Government Budget “stops people in their tracks. But as soon as it’s (announced) the phone starts ringing again and that’s what’s happened.”

He’s anticipating the next three or four months – the middle of

winter – will be a bit quieter but when winter’s gone the market will “come on really strong.”

“We want to be prepared for it, so we’re still buying and still selling.”

Leonard says buying domestic market trucks for his yard can be difficult. “There are plenty of trucks around but it’s hard picking the eyes out of them, because we’re very fussy about selection and quality.”

He tries to carry 130 trucks to ensure he has a good selection of all configurations, from flatdecks to tippers, to box-bodies – “everyone’s requirements are different and you have to have a good selection.”

If there’s one thing that rankles with Leonard it’s the emission requirements that have hamstrung the truck import trade.

“I can’t comprehend the government’s decision to abolish imports, because people are having to hang on to their old ones which are pumping out worse emissions than the (newer) imports would have been. There could be another reason than emission standards, the industry isn’t sure.”

But Leonard is steadfastly optimistic about vehicle retailing’s immediate future.

“We’ve been around for a long time and we’ve been through recessions before; and based on past experience, the longer (the recession) goes and the harder and more difficult it is, the stronger the industry comes back.”

Optimism is definitely alive in Timaru.

Autofile’s regular report focusing on the car sales market. Each issue we focus on a different part of New Zealand or a different market segment or niche, interviewing and seeking comment from local and specialist dealers.

by Mike stockPlenty of optimism in Timaru

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24 | www.autofile.co.nz

Paddon shines on Rally PortugalHe got a result – first Pirelli Star Driver to finish and third in the standard production (Group N) class – but Hayden Paddon says he was suffering from information overload during the Rally of Portugal.

The World Rally Championship counter was the New Zealand rally champion’s second event in the 2010 Pirelli programme, and he rejoined it after a first day retirement to go on and take the Pirelli win.

Along the way, he was fastest Group N driver on several stages, despite it being his first experience of Portuguese roads.

But he says his pacenotes – details of the route which tell a driver of the type of corner he’s approaching and the length of the straight after it – were far too detailed.

“(What) this event has highlighted for me is the need to reduce the amount of information I’m trying to pack into my pacenotes,” he says. “There’s just too much of it. John (Kennard, Paddon’s co-driver who calls out the notes during the special stages) is starting to talk at the start of the stage and it’s just non-stop.

“This has been a really technical rally, so it’s probably where it has been at its worst, but it’s something

I need to sort out.“The mistake I’ve made with

these technical roads is that my normal style of writing quite complex pacenotes was too full-on at times for roads where things happen very quickly. I had too much information coming at once.”

What to put in the notes and what to leave out is always a quandary for drivers. Some like a lot of information, noting even the shortest of straights, some prefer to opt for less and rely on memory of the stages from the pre-event reconnaissance and what they can see.

The late Colin McRae was an advocate of the former, and his notes for the ultra-tight Motu special stage near Opotiki in Rally New Zealand ran to hundreds of entries.

By contrast, Frenchman Francois Delecour noted only the trickiest of corners in the long stage which was packed with corners. His Motu pacenotes had only a handful of corners for his co-driver to call out.

So for their next outing in event as technical as Portugal, Paddon and Kennard will take the editor’s pencil to their pacenotes and include only what’s really needed.

But pacenotes aside, Paddon has plenty of positive sot take

from Portugal.“On the whole this was a good

rally where we showed, what I feel, was pretty good pace for our first time on these roads.

“The chances of getting a result were spoiled a bit when we got (time) penalties on Friday afternoon.

“The team did a great job getting the gearbox changed (but) we knew it was going to take longer than the time we were allowed (that extra time incurred a 1min 40s penalty which added to the 20 seconds he’d lost during the stage).

“The problem with the gearbox came on the final stage on Friday morning. We’d had a rear puncture for the last few kilometres of the stage and I think this might have caused the problem.

“We only had fourth and fifth gear for the last three kilometres of Special Stage 4, but we got through.”

Leg one ended for Paddon that afternoon. “We hit a rock which was right on the (driving) line in the last stage. This broke the steering and left us stranded.

“It was pretty much impossible to miss the rock. We were committed to the corner and if we’d tried to avoid the rock we’d have hit a post on one side or a tree on the other side of the rock.

It was bad luck.”Estonian Ott Tanak had been the

fastest of the Pirelli Star Drivers in the event’s first two days, clearing out from local star and reigning production car champion Armindo Araujo in another Mitsubishi Lancer.

By the end of day two he was 14th overall, but on the final day, he hit a bank in SS15. The Lancer was too badly damaged to continue and he retired.

That left the way clear for Paddon who had restarted his repaired Evo X on Saturday under the SupeRally rules.

He got quicker and quicker and finished the rally in 20th place, third in Group N and at the head of the Pirelli contenders.

Paddon’s next outing in the Pirelli programme is Rally Finland (July 29-31) where he’ll be concentrating on reducing the speed gap to Tanak which he says is about half a second a kilometre.

He thinks that’s possible but says it’ll be difficult because Finland is a highly-specialised event which Tanak has done before. The Estonian had also rallied in Portugal before.

But before heading to Finland, Paddon and Kennard will contest the International Rally of Whangarei in their own Team Green Lancer Evo 9.

motorsport

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www.autofile.co.nz | 25

motorsport

Dixon third on points after TexasFormer IndyCar champion, New Zealand’s Scott Dixon, is a handy third on points in the 2010 IndyCar series in the USA after finishing fourth at Texas Motor Speedway last weekend.

The Team Target Chip Ganassi driver has amassed 235 points and trails Texas winner, Australian Will Power by eight points.

Scotsman Dario Franchitti, Dixon teammate and the 2010 Indianapolis 500 winner, leads the drivers’ standings with 246 points. He finished fifth at Texas.

Dixon started fourth last weekend and ran in the top-five for most of the race.

“It wasn’t a bad day for the Target team with a double top-five finish today,” Dixon says.

“(My) car was solid and we held our ground for the most part.

“Outside of that it wasn’t your typical Texas race and things got strung out a bit at the end. We’ll take the points and move to Iowa (the next round on June 20).”

Dixon finished fifth at Indianapolis a fortnight ago.

He said after the Indy 500 that if it had been a 600-mile or 700-mile race he might have been looking a lot better than fifth at the finish.

His race had come unstuck during a pitstop.

As Dixon left the pits after the routine stop his Dallara’s left front wheel came loose. By the time that had been rectified, he’d dropped to the back of the lead-lap pack.

“We just never really regained,” he said. “I slowly picked off cars as I went along. If it was a 600- or 700-mile race, we would’ve been looking decent.”

But he said teammate and race winner Dario Franchitti had done a fine job. “He got lucky on the yellow, but you’ve got to give the guy a lot of credit. He led a lot of laps and definitely worked on it.

“(But) for me, it was not much of an exciting race.”

Gentleman Jim joins road safety drivenew Zealand racing great, Jim Richards, is lending high-profile support to a vehicle safety campaign run by Australian automotive association, the VACC.

The former Aucklander, a four times Australian Touring Car champion and seven times Bathurst winner, says he fully agrees with the Victoria-based association’s campaign that highlights the dangers of driving unsafe, poorly maintained vehicles.

“Now the winter months are upon us, a combination of wet roads and bald tyres can be fatal,” he says. “Good tyres are essential as they keep you on the road; worn or bald tyres mean little or no grip and your chances of staying alive are greatly reduced.

“It’s essential that drivers make sure their car is fit for the road and that they are prepared for all weather conditions.”

VACC says figures recorded during its mid-year Five Point Safety Check showed that that nearly one in five of the vehicles tested had problem tyres.

The Five Point Safety Check inspects a vehicle’s key safety areas – tyres, brakes, steering, lights and restraints.

“I’ve driven plenty of cars on a variety of surfaces and in different weather conditions, but I’ve only ever climbed into a car that’s properly prepared, well looked after and that is safe,” says Richards.

“If you know the car you’re driving is unsafe and you do nothing about it, then you’re irresponsible. Driving, particularly in winter, is hard enough without having the added risk of unsafe cars thrown into the mix.”

For onCe, V8 Supercar star Greg Murphy won’t be looking for the fastest way around a corner when he lines up on the startline in Queensland this weekend.In fact, the four times Bathurst-winning Kiwi will be trying to make sure his car doesn’t deviate from a straight line this weekend.

Murphy and fellow V8 Supercar driver Russell Ingall will give their Holden Commodore circuit race cars an outing in the Castrol Edge Winternationals drag race meet at Willowbank Raceway in Ipswich, Queensland..

They’ll drive their Castrol Edge (Murphy) and Supercheap

Auto Racing Commodores in the Supercar Shootout on the Saturday of the Australian Queen’s Birthday weekend race meeting.

They got a look at what to expect when they were at Willowbank for the unveiling of triple Australian drag racing champion Ben Bray’s new-look Castrol Edge Top Doorslammer Holden Monaro.

Ben and his father, six times Australian Top Doorslammer champion Victor Bray, gave them a few pointers on how to tackle the standing quarter mile sprint on June 12.

“Talking to Victor and Ben we’ve

learned a fair bit about drag racing,” says Murphy. “It’s slightly different to our style of racing but I think it’s a fantastic sport, I love watching it and I don’t think people realise just how much goes into it.

“Any chance to have a race of any description is something we jump at and we’re a pretty competitive lot so we’re looking forward to getting on track and having a go.”

Murphy’s teammate, Ingall dismisses the notion among some circuit racing fans that drag racing is a simple sport.

“You hear people say it’s just pointing the car in a straight line and going but after spending some time with legends of the sport it’s really quite interesting just how technical the whole thing is.

“There are probably a few things Murph and I can pick up as well, they have been telling us how they work on their reaction times for the starting tree and the techniques are very interesting, and definitely something I’ll be putting in the memory bank to see if I might be able to cut some better lights at the next V8 Supercar round.

Hey Murph, want a drag?

Greg Murphy and Russell Ingall block their ears as Ben Bray unleashes his Holden Monaro Top Door Slammer at Queensland’s Ipswich Raceway. Photo by blacktrack.com.au

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26 | www.autofile.co.nz

How did you first get involved in the car business?I‘ve been a licensed dealer since 1973. I was a mechanic by trade, but I realised it was more profitable to sell cars than service them.

I understand you began importing cars through your racing connection? Yes, I was the very first person to bring anything in from Japan. I was driving for Nissan at the time, and they sent me up to buy a works 240RS. My service manager and I went to Tokyo for three days, but once we were there they upped the price quite a bit on the car. So we were stuck in Tokyo for three days with nothing to do. I bought a Toyota Supra and a Mitsubishi Chariot, thinking I might be able to bring them in for racing car use. When I got back, the law had changed here regarding personal vehicle imports. Previously you had to own and use the vehicle overseas for a minimum time of 90 days. This was changed with the 90 days rule being dropped therefore you only had to own and use the vehicle while overseas.

In December 1985 the two cars arrived, and I made a good profit on those.

I couldn’t find any used cars to buy at the time, everything was high-mileage, ex-Government cars, and the franchise guys bought them up.

It’s interesting how narrow the market was before the used cars came in. Very much so. There was a lot of – how shall I say – entertaining of the franchise used car managers, so that you could get stock, and all you got given was what was traded or what you could buy out of the paper. In the early days four or five of us together would meet at the Latimer Lodge hotel at 6 o’clock on a Saturday morning and divide up the city, go through the press to see what was for sale privately.

Then we would go to the different areas which we would pull out of a hat. That’s how we used to buy our stock originally, as well as travelling around the country.

By going to Japan I discovered there was a huge pool of stock, which was very handy for us. I started doing ‘baggage’ tours to Japan, and at one stage I was taking 80 people a week to buy cars, mainly in Tokyo.

How did buying cars in Japan at that time compare with today?The auctions have always been trade-only, so you have to go with one of their agents. The auctions weren’t quite as big in those days, and we also bought from used car lots. I had a master-agent in Tokyo who had about four or five other agents, and they just went out in vans all around the different car market areas and bought from used car lots. Couples could buy two, bring them back, sell one and the other was virtually free.

What was the reception like back in New Zealand?In the early days when you bought a new car here, you could buy an HQ Holden with no power steer, no air-conditioning, no electric windows, and you had to wait to get one. When we started bringing in imports they had power steer, air-conditioning, electric windows and mirrors, every extra you can buy. It revolutionized the industry, it really made the new car guys sit up and take notice, and they started supplying cars that were higher spec.

Was there a particular reason why the new cars didn’t have these features? Well they could bring in what they liked because there was no competition. They changed pretty quickly, but the cars they were bringing in were a pretty base level. I understand this was mostly

due to costing; because tariffs were so high they were trying to bring in the cheapest models possible.

So with a better car and lower prices you would have been making a killing?After I swapped from baggage delivery to selling, we were selling 20 or 30 cars on a Saturday, easily. We opened for the Saturday only, since there was no stock here, and I’d buy a whole pile of say Mazda Familias off Mazda in Japan, trade-ins, and put them out at the right price here. I remember having 25 RX7’s in my courtyard here at one stage. I particularly remember the first shipment of Familias, which I was selling for about $6-7,000, while the equivalent you could buy here was about $14,000.

When I first started bringing them in I was selling a few through the auctions as well, and some pretty well-known gentlemen in Christchurch, who are retired now but have been in the industry a long time, were buying these things at the auctions and trying to figure out where they came from.

I remember after I brought my first lot of cars in, all the dealers here in Christchurch had a big emergency meeting, because none of them were selling anything. They were pretty against me, and I stood up at one of their meetings pretty early on and said ‘hey you guys, get your head out of the sand, don’t do any more HP-ing unless it’s 50% involved, because cars in New Zealand are going to go down in value. There’s a big market in Japan and you need to get into it.’ I took some of the dealers over, got them organized, and they started importing. The market

changed very quickly, and some guys got caught, having bought large amounts of New Zealand trade-ins, which quickly lost their value.

And that’s when the LMVDIA was formed?In the middle of all that, we formed the LMVDIA. I was there with Martin Todd, there were about five of who were having trouble with Customs who were being picked on individually as we bought vehicles into the country, so we all got together and decided that if we were going to get bigger we needed to combine.

Customs were being very picky at different ports, I know Ricky Boyer had 22 cars stuck in Timaru on the wharf while they were waiting to get documentation, etc.

It started getting a bit tricky since the manufacturers were pushing for standards, and the Government brought in new regulations. The Government vehicle standards people made it quite hard for us and that’s why we formed the Association. After that we began to get more involved as the Government started bringing out more and more Vehicles Standards Regulations.

We dealt with seat-belt anchorage points, so the LMVDIA naturally moved on in that area

Profile: Garry Cliff

industry profile

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www.autofile.co.nz | 27

and we started doing our own testing and seat-belt anchoring, in order to keep up with the regulations the Government was bringing in. At one time, when I was on the executive, we spent something like $1.6 million setting up a seatbelt anchoring test plant, the beginnings of the certification programme.

That’s where we played our part, ensuring that our members were able to keep importing.

I spent five years on the Executive, and was the national spokesman for that period.

The situation’s obviously a bit more stable now.Yeah, well we’ve been importing now for 25 years, and I’ve got articles on my desk, some of the old newspapers saying ‘they’re not going to last’ etc etc, everyone was saying it will take about two minutes and Japanese imports will disappear.

Were the shipping companies set up to bring the cars in?

I remember when I went to Tokyo, and I took a friend of mine who was the manager of the Lyttelton Port Stevedoring Company. We had an appointment to see Mitsui Shipping, who were the biggest shipping company in

the world at that time. I’d just been for a run, and I turned up at the agent’s in my shorts and a t-shirt, and there were four well-dressed Japanese executives waiting for me. I had to go back and get changed. But they were very serious about looking after us. So at that time my Japanese agent was dealing with Mitsui. Then of course, not much later on, Armacup formed a shipping company to accommodate vehicle imports.

The original boats coming in were reefer boats, and we had a lot of trouble with them, since the cars were lifted off the deck and onto the wharf in a cradle. That situation wasn’t very good so the association worked pretty hard to get it changed, and now of course we have the roll on and roll off boats. Armacup Shipping first and then Kiwi Shipping providing this service to New Zealand.

What were the wider effects of the import trade?A lot of businesses grew around the import trade. We had a lot of people knocking us, saying that we would close down panel-beaters and painters, but in actual fact these businesses grew, since obviously cars coming in from Japan also needed these services. Because there were more cars coming in, there was more business for these guys.

The manufacturers in New Zealand were assembling cars here, and there was a big cry about losing jobs. They were called New Zealand new cars, but in actual fact they were all bought here in crates and assembled. I got some figures in Wellington, and I understand that we were paying in the thousands of dollars each year in subsidies per worker. But when the factories closed, we were importing 80-100 thousand Japanese cars per annum, and they’ve all got to be serviced and tyred, painted and panelbeaten, and so rather than subsidizing the new car manufacturers, it’s all stand-alone, so everyone’s benefited from it.

That’s a long way to come from wanting to buy a race car. From me originally bringing in those two cars, instead of Nissan paying a bit extra and letting me bring in the works rally car, we ended up with imports. This ended up costing them money as they now had huge competition for sales. They probably should have let me buy that car!

In fact I ended up buying that exact car, many years later in England. The Works 240RS Nissan was quite a famous car in the end. I imported it here and I used it for a while, before selling it back to Japan. A man in Japan has fully restored it.

That car, racing after having been restored in 2005 in Japan.

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autofi le is the voice of the auto industry. Sold on subscription to motor vehicle dealers, shipping companies,

customs agents, fi nance and insurance companies, and any supplier, association or government agency with an interest in the auto industry.

Editorial Profi le

Having served the industry for over 24 years, autofi le has a proud history as the voice of the auto industry; published weekly it highlights issues of concern to the motor industry as well as items of general interest relating to the new and used vehicle import trade. The publication aims to provide the information that automotive trade companies and related organizations want and need to know.

A major feature of autofi le is the analysis of sales statistics – of new vehicles, used imports, secondhand vehicles and motorcycles and trucks.

The magazine is required reading for anyone who needs to plan and operate in the motor trade.

Reader Profi leThe majority of autofi le readers are vehicle sales professionals. Whether it is a salesman, fi nance and insurance manager or the dealer principal, the reader wants to be kept informed about all aspects of the motor trade. The readership is not confi ned to those directly in the trade. Importers, fi nance companies and insurers, motor vehical associations and government departments also make up a signifi cant portion of the readership in that industry.

Advertisingautofi le and its supplements are read by the decision makers in the auto industry so is the perfect environment for you to get your message across to the people who really matter. It is a highly respected publication that carries real weight in the trade. The opportunity to backup advertising with editorial exists and this has proved to be a very successful way for advertisers to nail home their message.

Booking deadline: 12 noon Monday prior to issue date

Artwork deadline: 12 noon Tuesday prior to issue date

ContactBrian McCutcheon

p. 0508 288 863 m. 021455775 e. brian@autofi le.co.nz

the voice of the auto industry; published

used vehicle import trade. The publication

automotive trade companies and related

fi le is the analysis

www.autofi le.co.nz | 1

GST sting for dealersCAR DEALERS around the

country will be out of pocket if

the Government announces a GST

rise in next week’s Budget.

When Prime Minister John Key

released details of a tax package in

February, he announced that the

Government is considering a 2.5%

GST increase.

Having campaigned on a

platform which did not include

a GST increase, National copped

flack over the news. But the early

announcement means there will

be no surprise come May 20.

According to BNZ economist

Gary Steel, the GST increase will

come into effect from October

1, since the start of the next tax

year, April 1, lies in an election

year. Any sooner would not give

businesses sufficient time to

prepare for the change-over.

With input credits being paid

at the time a vehicle is delivered,

stock purchased at the current

rate, but sold after the rise, will

incur a larger than usual GST cost

for traders.

An overnight change will

result in a one-off loss for

dealers, based on the percentage

difference between the input and

output credit, a loss which will

either have to be absorbed, or

offset by raising prices.

A car purchased for $10,000

results in an input credit of $1111.

If that car was sold for $13,000 the

GST portion is $1444, leaving the

trader with $333 of GST to be paid.

A car purchased for $10,000

at the current GST rate but sold

after the rise to 15% for the same

amount, will contain GST of

$1696. This will leave the dealer

with a $585 GST bill.

By comparison, a car

purchased for $10,000 after the

rise will contain an input credit of

$1304, and when sold will leave a

GST bill of $385, a $42 difference,

CAR DEALERS are continuing to

experience steady growth, with

new car sales in April 30% above

April 2009 sales.

While April is traditionally a slow

month for new dealers, Perry Kerr,

of the Motor Industry Association,

believes that the normal

circumstances may not apply.

“Historically April is a slow

month because it follows the year

end,” says Kerr.

“In the past this was more

significant because businesses

received six months depreciation,

now you only get a month.

Businesses also traditionally

tended to use up money allotted

for vehicle purchases before the

year end.

“However I think that is not as

relevant, certainly over the last 12

to 18 months with the downturn

we’ve had, as companies have

taken out money they’ve set

aside for the purchase of cars

because of the crisis.”

While the Easter break and

school holidays still have an

impact, the number of sales

presents a signi� cant improvement

over last year. The year-to-date

comparison with 2009 shows that

new car sales are ahead by 2383

units, or 14%.

Kerr believes that there is

some demand from businesses

that extended leasing

agreements during the downturn.

“People that were on a three-

year cycle pushed them out,” he

says. “There’s going to be some

Subscribe to Autofi le now and pay only $150 plus GST for 12 months.

That’s 48 issues of auto industry news, statistics, exclusive feature articles and much, much more.

See inside back cover for further details

The voice of the auto industry

The voice of the auto industry

13 May 2010

Strong sales fi gures for Aprilcontinued on page 4

continued on page 7

Ford win nail-biting Rally NZ p22

AF_13May.indd 1

5/17/10 5:29:03 PM

www.autofi le.co.nz | 1

GST sting for dealers around the

country will be out of pocket if

the Government announces a GST

rise in next week’s Budget.

When Prime Minister John Key

released details of a tax package in

February, he announced that the

Government is considering a 2.5%

Having campaigned on a

platform which did not include

a GST increase, National copped

flack over the news. But the early

announcement means there will

be no surprise come May 20.

According to BNZ economist

Gary Steel, the GST increase will

come into effect from October

1, since the start of the next tax

year, April 1, lies in an election

year. Any sooner would not give

businesses sufficient time to

prepare for the change-over.

With input credits being paid

at the time a vehicle is delivered,

stock purchased at the current

rate, but sold after the rise, will

incur a larger than usual GST cost

for traders.

An overnight change will

result in a one-off loss for

dealers, based on the percentage

difference between the input and

output credit, a loss which will

either have to be absorbed, or

offset by raising prices.

A car purchased for $10,000

results in an input credit of $1111.

If that car was sold for $13,000 the

GST portion is $1444, leaving the

trader with $333 of GST to be paid.

A car purchased for $10,000

at the current GST rate but sold

after the rise to 15% for the same

amount, will contain GST of

$1696. This will leave the dealer

with a $585 GST bill.

By comparison, a car

purchased for $10,000 after the

rise will contain an input credit of

$1304, and when sold will leave a

GST bill of $385, a $42 difference,

CAR DEALERS are continuing to

experience steady growth, with

new car sales in April 30% above

April 2009 sales.

While April is traditionally a slow

month for new dealers, Perry Kerr,

of the Motor Industry Association,

believes that the normal

circumstances may not apply.

“Historically April is a slow

month because it follows the year

end,” says Kerr.

“In the past this was more

significant because businesses

received six months depreciation,

now you only get a month.

Businesses also traditionally

tended to use up money allotted

for vehicle purchases before the

year end.

“However I think that is not as

relevant, certainly over the last 12

to 18 months with the downturn

we’ve had, as companies have

taken out money they’ve set

aside for the purchase of cars

because of the crisis.”

While the Easter break and

school holidays still have an

impact, the number of sales

presents a signi� cant improvement

over last year. The year-to-date

comparison with 2009 shows that

new car sales are ahead by 2383

units, or 14%.

Kerr believes that there is

some demand from businesses

that extended leasing

agreements during the downturn.

“People that were on a three-

year cycle pushed them out,” he

says. “There’s going to be some

Subscribe to Autofi le now and pay only $150 plus GST for 12 months.

That’s 48 issues of auto industry news, statistics, exclusive feature articles and much, much more.

See inside back cover for further details

The voice of the auto industry

13 May 201013 May 2010

Strong sales fi gures for Aprilcontinued on page 4

continued on page 7

Ford win nail-biting Rally NZ p22

Emissions Trading Scheme to cripple Importersthe eMIssIons Trading Scheme (ETS) is due to come into law on July 1, and among its many targets for taxation will be the refrigerant gasses contained inside vehicle air-conditioning systems.

These gasses are construed by the ETS to be emitted at the time of importation, and therefore are considered to contribute to total global warming emissions.Industry leaders are calling the impost onerous, with their

anger directed not only against the impost, but also the manner in which it is collected. In 2011 reporting will be voluntary, the rationale being that businesses will have time to put reporting systems in place. Reporting will be mandatory in 2012, and in 2013 businesses will have to surrender carbon credits based on their previous year’s reporting.

One issue, as yet unresolved, will be the way in which gas

amounts will be calculated. A system may be set in place with a database of all vehicles, similar to that used for vehicle effi ciency ratings, or it may be calculated based on the vehicle’s age, with average values worked out for each year from manufacturing data. The three motor trade associations, the Motor Industry Association (MIA), the Imported Motor Vehicles Industry

Association (IMVIA), and the Motor Trade Association (MTA)

did not lobby against the impost at the time of submissions, since they were unaware of the implications of the fine print of the legislation. According to IMVIA chief executive David Vinsen, they first became aware of the

issue after being summoned to Wellington for a technical advisory group. “We didn’t see this coming. When the ETS was first promulgated, and going through the consultation phase,

DeALers WILL have to continue to wait for clarifi cation over the two new Acts regulating the sale of fi nancial and insurance products, the Financial Advisers Act and the Financial Services Providers (Registration and Dispute Resolutions) Act.

Passed in 2008, the Financial Adviser’s Act is designed to promote the sound and effi cient delivery of fi nancial advice, and to encourage public confi dence in the professionalism and integrity of fi nancial advisers.

The Financial Service Providers

Act will create an electronic register of Financial Service Providers, increasing the transparency of public information related to such advisers. Part of the registration process will require fi nancial providers to join a dispute resolution scheme.

The voice of the auto industry

20 May 201020 May 2010

Emissions Trading Scheme The voice of the auto industry The voice of the auto industry

Uncertainties Remain over New Finance Legislation

continued on page 4

GT2 RSMost powerful production Porsche ever

continued on page 4

p9

AF_20May.indd 1

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the motor trade.

20 | www.autofile.co.nz

www.autofile.co.nz | 21

MAKE Apr ‘10 YTD ‘10 MThlY % YTD % MAKE Apr ‘09 YTD ‘09

ISUZU 32 115 39.1 -45.2 ISUZU 23 210

MITSUBISHI 20 79 11.1 -21.0 MITSUBISHI 18 100

FORD 16 68 128.6 74.4 HINO13 88

MERCEDES-BENZ 15 48 275.0 -41.5 SCANIA 12 68

HINO 15 78 15.4 -11.4 FIAT10 40

NISSAN 6 28 0.0 -36.4 VOLVO 10 19

IVECO6 33 -25.0 26.9 IVECO

8 26

FIAT6 27 -40.0 -32.5 FORD

7 39

DAF6 14 100.0 40.0 FREIGHTLINER 7 46

VOLKSWAGEN 3 10100.0 KENWORTH 7 30

MAN3 8

NISSAN 6 44

KENWORTH 3 22WESTERN STAR 5 24

VOLVO 2 9MERCEDES-BENZ 4 82

STERLING 2 8DAF

3 10

SCANIA 2 21INTERNATIONAL 2 12

MACK 2 5MAN

2 7

FREIGHTLINER 2 10MACK

1 11

WESTERN STAR 1 7RENAULT 1 2

INTERNATIONAL 1 8STERLING 1 2

CHEVROLET 1 2VOLKSWAGEN

5

FACTORY BUILT2

KATO3

MAZDA1

FACTORY BUILT0

TADANO1

CHEVROLET2

GROVE2

TEREX1

ToTAl 144 603 2.9 -31.1 ToTAl 140 875

MAKEApr’10 ‘10 YTD MonThlY % YTD % MAKE

Apr‘09 ‘09 YTD

ISUZU17 26 -10.5 -71.1 ISUZU

19 90

MITSUBISHI6 8 +100 -11.1 MITSUBISHI

3 9

TOYOTA4 19 +33.3 +35.7 TOYOTA

3 14

NISSAN3 6 +50 -76 NISSAN

2 25

HINO3 4 +200 -69.2 DODGE

1 6

FACTORY BUILT3 3 +200 -25 FACTORY BUILT

1 4

FORD2 4 +200 +33.3 FIAT

1 2

MAZDA0 62 0 +6100 HINO

1 13

IVECO0 26 0 0 SCANIA

1 3

MERCEDES-BENZ 0 10 0 +900 FORD0 3

TEREX0 5 0 0 CHEVROLET

0 2

FREIGHTLINER0 5 0 0 GROVE

0 1

MAN0 2 0 0 MERCEDES-BENZ 0 1

CHEVROLET0 2 0 0 MACK

0 1

FIAT0 1 -100 -100 MAZDA

0 1

DODGE0 1 -100 -600 DAF

0 1

SPARTAN0 1

ToTAl38 184 18.75 +4.0

32 177

Used Truck Sales By Make

New Truck Sales By Make New Bike Sales By Make Used Bike Sales By Make

industry statistics

industry statistics

MAKE Apr ’10

YTD ’10

MThlY % MAKE Apr ‘09 YTD ‘09

MOPED 99 516 -29.8 SUZUKI 194 789

SUZUKI 91 538 -53.1 MOPED 141 745

HARLEY DAVIDSON 61 262 -6.2 HONDA 76 300

TRIUMPH 49 183 172.2 HARLEY DAVIDSON 65 319

YAMAHA 46 181 -17.9 YAMAHA 56 263

HONDA 46 275 -39.5 KAWASAKI 42 223

HYOSUNG 27 82 125.0 FACTORY BUILT 33 154

KAWASAKI 26 116 -38.1 PIAGGIO 21 98

FACTORY BUILT 18 98 -45.5 TRIUMPH 18 146

PIAGGIO 14 65 -33.3 KEEWAY 16 66

BMW 14 60 BMW 14 53

KYMCO 13 23 DUCATI 14 36

VMOTO 11 32 HYOSUNG 12 68

KEEWAY 11 52 MOTORCYCLE 12 47

MOTO GUZZI 9 11 KTM 8 48

KTM 8 45 SYM 7 49

APRILIA 6 28 VESPA 7 40

VESPA 4 29 APRILIA 5 20

SYM 4 22 PGO 4 23

MOTORCYCLE 4 27 BUELL 3 19

ROYAL ENFIELD 3 7 DAELIM 2 4

LIFAN 3 13 LIFAN 2 15

DUCATI 3 21 MOTO GUZZI 2 18

SACHS 2 2 VICTORY 2 5

MOTO MORINI 2 4 DAYTONA 1 1

DAELIM 2 10 FALCON 1 1

URAL 1 1 LVVTA 1 2

PGO 1 12 PEUGEOT 1 3

ITALJET 1 2 CMG 1

HUSABERG 1 2 GARELLI 1

BENELLI 1 8 GAS GAS 1

PEUGEOT 2 GILERA 3

PANTHER 1 HUSABERG 5

MV AGUSTA 1 HUSQVARNA 6

MINI 1 ITALJET 1

KINETIC 1 KINETIC 1

HUSQVARNA 3 MINI 1

GILERA 4 MOTO MORINI 3

BUELL 15 MV AGUSTA 6

MZ 1

PIONEER 1

ROYAL ENFIELD 5

SACHS 3

SILVER 1

ZONGSHEN 3

ToTAl 581 2755 -23.6 760 3598

MAKE Apr ’10

YTD ’10

MThlY % MAKE Apr ‘09

YTD ‘09

HONDA 30 141 -28.6 HONDA 42 187

HARLEY 26 155 23.8 YAMAHA 33 155

SUZUKI 21 78 16.7 HARLEY 21 137

BMW 14 55 180.0 DUCATI 20 79

YAMAHA 12 78 -63.6 SUZUKI 18 92

DUCATI 11 60 -45.0 KAWASAKI 13 50

TRIUMPH 6 46 -50.0 TRIUMPH 12 45

MOPED 6 33 -25.0 MOPED 8 26

KAWASAKI 4 34 -69.2 PANTHER 8

MOTORCYCLE 3 11 50.0 APRILIA 5 20

LVVTA 3 5 BMW 5 59

FACTORY 3 13 VESPA 4 22

VESPA 2 16 FACTORY 2 11

MOTO GUZZI 2 12 MOTORCYCLE 2 4

KYMCO 2 2 BOLWELL 1 2

APRILIA 2 19 BOMBARDIER 1 1

VICTORY 1 6 BROUGH 1 1

PIAGGIO 1 4 BSA 1 3

PGO 1 3 CAGIVA 1 4

NORTON 1 4 CUSTOMBUILT 1

MITSUBISHI 1 1 ENFIELD 1 2

LAMBRETTA 1 1 GILERA 1

KTM 1 8 LAVERDA 1 3

BUELL 1 9 MOTO GUZZI 1 9

BSA 1 1 NORTON 1 2

VELOCETTE 1 PIAGGIO 1 6

RUDGE 1 TITAN 1 1

ROYAL 3 VICTORY 1 4

RHINO 1 BUELL 10

MINI 1 VINCENT 4

MATCHLESS 1 KTM 4

MAGNI 2 INDIAN 4

LAVERDA 1 LAMBRETTA 3

LAMBRETTA 1 LVVTA 2

HYOSUNG 1 AMERICAN 2

BSA 60 HYOSUNG 1

BIMOTA 1 URAL 1

AJS 1

MAGNI 1

MV AGUSTA 1

MZ 1

SUNBEAM 1

VELOCETTE 1

ToTAl 156 869 -24.6 207 962

AF_13May.indd 20-21

5/17/10 5:31:00 PM

Contact

6 27

6 14 100.0 40.0 FREIGHTLINER 7 46

3 10100.0 KENWORTH 7 30

3 8NISSAN 6 44

3 22

5 24

2

4 82

3 10

2 12

2 7

1 11

1 2

1 2

5

3

0

1

2

2

1

140 875

Apr‘09 ‘09 YTD

19 90

3 9

3 14

2 25

1 6

1 4

1 2

1 13

1 3

0 3

0 2

0 1

0 1

0 1

0 1

0 1

0 1

32 177

industry statistics

Around the country

Used car sales - April 2010

Hamilton

4582009: 375

22.1%

Wanganui

562009: 42

33.3%

Nelson

922009: 80

15.0%

Westport

72009: 4

75.0%

Greymouth

162009: 19

15.8%

Masterton

672009: 29

131.0%

Whangarei

1172009: 100

17.0%

Wellington

6302009: 397

58.7%

Thames

362009: 28

28.6%

Blenheim

382009: 18

111.1%

Tauranga

2662009: 177

50.3%

Christchurch

8912009: 626

42.3%Timaru

702009: 32

118.8%

Rotorua

642009: 46

39.1%

Oamaru

152009: 12

25.0%Dunedin

2532009: 137

84.7%Invercargil

732009: 60

21.7%

Gisborne

282009: 40

30.0%

Napier

1862009: 96

93.8%

Palmerston North

2162009: 118

83.1%

Auckland

33382009: 2248

48.5%

New

Plymouth

1362009: 75

81.3%

Total

70532009: 4759

48.2%

12 | www.autofi le.co.nz

AF_20May.indd 12

5/19/10 7:57:39 AM

MAKE

ISUZU

MITSUBISHI

FORD

MERCEDES-BENZ

HINO

NISSAN

IVECO

New Truck Sales By Make

FIAT

DAF

VOLKSWAGEN

MAN

KENWORTH

VOLVO

industry statistics

Around the countryAround the country

Used car sales - April 2010Used car sales - April 2010

Nelson

922009:

15.0%

Westport

72009: 4

75.0%

Greymouth

162009: 19

15.8%

Plymouth

Total

70532009: 4759

48.2%

www.autofile.co.nz | 7

pent-up buying demand, because

if you have a traveller doing

100,000 or 120,000km, you can

defer replacing that vehicle for

only so long.

“And if you’ve pushed that

vehicle out to 140,000km you’re

going to need to replace it sooner

rather than later. And for those

that have a salary package or for

the managing directors, they’re

going to want to be seen to have

the new car; it gets back to the

status issue.”

Kerr is happy to see the market

coming out of last year’s low.

“Growth-wise we aren’t

predicting huge numbers,

probably only 10% on last year.

Certainly the 30% for April was

much higher than I anticipated.

Overall we’re still only at about

12%, so we’re not seeing any large

increases, but we’re seeing a slow

build-up in the market again.”

However as a consequence of

the slowdown, some dealers are

experiencing shortage of stock,

says Kerr.

“Stock levels of car companies

are at their lowest levels we’ve

seen in 30 years of monitoring.

Certainly the car companies here

have cut back on their stock,

and that I understand is causing

problems for some people who

want a particular vehicle in a

particular colour.

“If dealers are confident that

the market has got back to some

stability, we’ll see stock levels

picking up. Car companies have

been saying that this year will

be a slow climb out of the hole.

Certainly we think 2011 will be

better than 2010, because it’s

election year, you’ve got the

Rugby World Cup, and a lot of

other things happening that will

stimulate the market.”

The NZTA figures show that

the used vehicle market began

its recovery earlier than the new,

with sales beginning to grow

late last year. April registrations

of used imports were 48%

above 2009, and year-to-date

registrations are up 43% on 2009.

Kerr believes that the used car

numbers signal market stability.

“Looking at their numbers,

they’re doing relatively well.

Used cars are primarily private

purchases, so that gives the

indication that people are happy

about where things are heading

if they’re out buying a second-

hand car. It’s peoples’ perception,

rather than money in the back

pocket that leads to spending.”

However house prices and

house stability are an important

factor in influencing peoples’

purchasing decisions, says Kerr.

Housing prices remain flat, with

uncertainty about tax changes

which will we be announced in

next week’s budget.

“There are still a lot of

uncertainties in that area, and the

numbers show that the housing

market isn’t picking up to the

extent that the new car market has

in the last two months,” adds Kerr.

Overall, the signs indicate

that our economy is headed in

the right direction. Consumer

confidence remains strong, and

business confidence is at its

highest level in over 10 years.

Figures recently released by

Statistics New Zealand show

that unemployment dropped

in the March quarter from 7.1

to 6%, the first drop since the

December 2007 quarter. This is a

particularly strong result, as this

fall in unemployment occurred

across the period where seasonal

labour jobs and the Christmas

rush comes to an end.

With interest rates expected to

be raised in the next few months,

it looks as if the economy and car

sales will continue to strengthen.

See our stats pages for individual

sales figures. Autofile will provide

sector-specific coverage in the weeks

in which no new stats are released.

news

Strong sales figures for Aprilcontinued from page 1

3000

4000

5000

6000

7000

8000

9000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

New Passenger Registrations

2006 2007 2008 2009 2010

0

2000

4000

6000

8000

10000

12000

14000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Used Import Passenger Registrations

2006 2007 2008 2009 2010

0

200

400

600

800

1000

1200

1400

1600

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

New Motorcycles (>60cc, & <60cc)

2004 2005 2006 2007 2008 2009 2010

AF_13May.indd 7

5/17/10 5:29:30 PM

www.autofile.co.nz | 21

KYMCO

VMOTO 11 32 HYOSUNG 12 68

KEEWAY 11 52 MOTORCYCLE 12 47

MOTO GUZZI 9 11 KTM 8 48

KTM 8 45 SYM 7 49

APRILIA 6 28 VESPA 7 40

VESPA 4 29 APRILIA 5 20

SYM 4 22 PGO 4 23

MOTORCYCLE 4 27 BUELL 3 19

ROYAL ENFIELD 3 7 DAELIM 2 4

LIFAN 3 13 LIFAN 2 15

DUCATI 3 21 MOTO GUZZI 2 18

SACHS 2 2 VICTORY 2 5

MOTO MORINI 2 4 DAYTONA 1 1

DAELIM 2 10 FALCON 1 1

URAL 1 1 LVVTA 1 2

PGO 1 12 PEUGEOT 1 3

ITALJET 1 2 CMG 1

HUSABERG 1 2 GARELLI 1

BENELLI 1 8 GAS GAS 1

PEUGEOT 2 GILERA 3

PANTHER 1 HUSABERG 5

MV AGUSTA 1 HUSQVARNA 6

MINI 1 ITALJET 1

KINETIC 1 KINETIC 1

HUSQVARNA 3 MINI 1

GILERA 4 MOTO MORINI 3

BUELL 15 MV AGUSTA 6

MZ 1

PIONEER 1

ROYAL ENFIELD 5

SACHS 3

SILVER 1

ZONGSHEN 3

ToTAl 581 2755 -23.6 760 3598

VESPA 2 16 FACTORY 2 11

MOTO GUZZI 2 12 MOTORCYCLE 2 4

KYMCO 2 2 BOLWELL 1 2

APRILIA 2 19 BOMBARDIER 1 1

VICTORY 1 6 BROUGH 1 1

PIAGGIO 1 4 BSA 1 3

PGO 1 3 CAGIVA 1 4

NORTON 1 4 CUSTOMBUILT 1

MITSUBISHI 1 1 ENFIELD 1 2

LAMBRETTA 1 1 GILERA 1

KTM 1 8 LAVERDA 1 3

BUELL 1 9 MOTO GUZZI 1 9

BSA 1 1 NORTON 1 2

VELOCETTE 1 PIAGGIO 1 6

RUDGE 1 TITAN 1 1

ROYAL 3 VICTORY 1 4

RHINO 1 BUELL 10

MINI 1 VINCENT 4

MATCHLESS 1 KTM 4

MAGNI 2 INDIAN 4

LAVERDA 1 LAMBRETTA 3

LAMBRETTA 1 LVVTA 2

HYOSUNG 1 AMERICAN 2

BSA 60 HYOSUNG 1

BIMOTA 1 URAL 1

AJS 1

MAGNI 1

MV AGUSTA 1

MZ 1

SUNBEAM 1

VELOCETTE 1

ToTAl 156 869 -24.6 207 962

www.autofi le.co.nz | 9

Super M3 – a 300km/h screamer

new cars

BMW Is pushing the M3 towards

the 320km/h club with an uprated

version designed to double as a

road or track car.

BMW quotes 0-100km/h in 4.4

seconds and a 304km/h top speed

for the M3 GTS whose highly-

adjustable chassis allows it to be

transformed from a useable road

car into a potent circuit racer.

Increased piston stroke lifts

the V8 motor’s displacement from

3999cc to 4361cc; power rises

to 336kW at 8300rpm, and peak

torque is 40Nm greater, at 440Nm.

The gearbox is a clutchless DSG

seven-speed.

A rigidly-bolted, height-

adjustable rear subframe which

allows the rear to be lowered by

12mm for track work. The front end

can be lowered 16mm, and damper

rates and front and rear camber are

adjustable.Brake disc size rises by 18mm

at the front (six-pot callipers) and

30mm at the rear (four-pot) and the

car runs on Y-spoke 19-inch matt

black M alloy wheels.

Downforce can be adjusted

using the rear wing – based on

BMW’s 320si World Touring Car

Championship racer’s – and the

front apron’s air defl ectors.

Lightweight componentry

shaves 70kg from the kerb weight

which is now 1530kg. The roof is

Carbon-Fibre Reinforced Plastic

and side and rear windows are

polycarbonate.

Deleting the rear seats and

reducing sound insulation saves

more weight, and the thin-walled

lightweight racing exhaust system

has titanium silencers.

Driver and passenger sit in race

car seats and are restrained by

six-point seatbelts. A rollbar behind

the B-pillars is standard, with a full

rollcage optional.

BMW starts building right-hand

drive versions in January 2011, and

the car will be available in only one

colour, orange.

eVen eXtreMe performance

is going green – well, greener,

anyway.Take Porsche’s newly-

announced 911 GT2 RS, for

example. The German sports

carmaker says that though it’s the

fastest and most powerful road-

going Porsche ever, with a 462kW

(620hp) motor and a 328km/h top

speed, the GT2 RS delivers fi ve

percent lower fuel consumption

and exhaust emissions than the

standard GT2.

Porsche says it can return fuel

economy of 11.9 litres/100km

(23.7 mpg) and CO2 emissions

of 284 grams/km, despite being

67kW more powerful. Not bad

fi gures for a vehicle with race car

performance.

Its twin turbo six-cylinder

boxer motor drives the rear wheels

through a six-speed manual

gearbox and delivers 0-100km/h

in 3.5 seconds, 0-200km/h in 9.8,

and 0-300km/h in 28.9. Porche has

increased the RS’s turbo boost to

1.6 bar from the standard GT2’s 1.4.

The RS uses lighter aluminium

transverse arms and diagonal struts

in the rear suspension, carbon

fi bre reinforced bonnet and rear

spoiler, polycarbonate rear and side

windows, lightweight engine cover,

lightweight door panels, lighter

single-mass fl ywheel, and a lighter

lithium-ion battery.

Ceramic brake discs are standard,

along with upratecd springs,

Porsche Adaptive Suspension

Management (PASM) and PSM

Porsche Stability Management. Its

325/30 ZR19 tyres were developed

specially for the GT2.

Wider light-alloy front

wheels are shrouded by fl ared

wheelarches, the front and rear

spoilers are carbon-fi nished

CFR as are the bucket seats and

lightweight interior door panels.

The basic interior colour is black,

with red alcantara centre sections

in the seats.Matt black carbon-fi bre-

reinforced (CFR) components are

used extensively in the bodywork

Porsche is building only 500

GT2s and a handful will come

here. No New Zealand price has

been announced but in Britain,

the GT2 will sell for the equivalent

of $332,800.

GT2 RS ups the performance ante

AF_20May.indd 9

5/19/10 7:57:34 AM

Autofile Voice ad_June10.indd 1 8/06/10 9:18 PM