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AssociationProfile

AA ASSOCIATION PROFILE 2015 | 3

The New Zealand Automobile Association has helped Kiwi motorists for more than 110 years.

From its early roots in May 1903, when Dr George Thomas Humphrey de Clive Lowe invited about 20 new motoring enthusiasts to consider his germ of an idea to start an automobile club, to now, with more than 1.4 million Members, there are few people in New Zealand who haven’t had some form of contact with the AA.

First in Auckland, followed by Canterbury a few months later, motoring clubs began to dot the country with at least 15 different automobile associations registered by 1930.

In 1991, the New Zealand AA was formed with the amalgamation of 17 district automobile associations and became the country’s largest club.

The AA has a simple vision: That AA Membership be truly indispensable. Historically, our Member benefits have centred around AA’s iconic Roadservice, providing support to motorists in the event of a breakdown, alongside other benefits such as maps and motoring advice. While these historic benefits continue, we have recently focused on growing the range and value of benefits to provide more value to Members with the addition of new entitlements such as free professional eye checks, free driving lessons for learner drivers, and fuel discounts.

AA – a cultural icon

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The AA brand represents a rich history, which is why a version of our historic club mark has been reintroduced to sit alongside our modern logo. This reflects both our commitment to the present and future needs of motorists and also the pride we have in our heritage – serving the needs of New Zealand motorists for more than a century.

A solid belief the AA can deliver on all of our services is backed up with a track record that began at the beginning of the 20th century when most New Zealanders were using a different kind of horse power to get around.

While logos might change over time, the AA brand will always stand for providing high quality, reliable and helpful service to all Members.

BrAnd Commitment to Members


Delivering value for Members is at the heart of everything we do. We strive to ensure the value of Membership benefits offered significantly exceeds the cost of the subscription. We also act as an advocate for Members by being the voice of the New Zealand motorist with all relevant regulatory authorities and interest groups.

Today AA Membership includes: > A free eyesight examination at Specsavers once every two years

> Three free driving lessons for Members, Members’ children or grandchildren who are learner drivers

> Free vehicle safety checks and expert motoring advice

> Discounted movie tickets at EVENT and Rialto cinemas

AA Membership means...

…service, value and honest guidance.

With that service is great value. This is reflected in the overall cost of Membership, which has been held at the same level for many years, and the benefits belonging to the AA brings.

While Roadservice remains the key reason why motorists join the AA, the added benefits offered to Members across a growing range of services are significant.

> Discounts with travel partners including Thrifty and Interislander

> Insurance discounts

> At least six AA Roadservice callouts a year

> Discounts on many AA Motoring products

> Automatic ability to earn and redeem AA Smartfuel fuel discounts


Making the roads safer for our Members is at the heart of much of our advocacy work and we are a lead supporter of the United Nations Decade of Action for Road Safety, which is seeking to significantly reduce deaths and injuries on the world’s roads by 2020.

The AA pushes for realistic and evidence-based changes that will make the roads safer and we have established the AA Research Foundation to help achieve this.

As part of our commitment to road safety we are a leading partner in KiwiRAP, a world-leading road assessment programme that identifies which roads have the greatest risks so safety improvements can be targeted where they are most needed. The AA has also partnered with the Transport Agency and Caltex in a programme to help learner drivers who would otherwise struggle to gain their restricted licence, and is a major supporter of Students Against Dangerous Driving (SADD), which is active in nearly three-quarters of secondary schools.

Keeping the costs of motoring fair and reasonable is another key focus of our advocacy work. The cost of fuel is a major concern for many Members so our AA PetrolWatch function constantly monitors the markets and acts as a watchdog on the oil companies. Costs like fuel taxes, licensing fees, ACC levies, Road User Charges and parking fees add up to considerably amounts for motorists and the AA seeks to make sure our Members are not paying more than they should be.

When the transport system works well we hardly notice it, but when it doesn’t it is one of the biggest frustrations people have. Since the earliest days of the AA, calling for changes to make things better and safer on the roads has been a key task of the Association. Our advocacy work is about being a strong voice for our Members and motorists and there are three key aims:

> Being the motorist’s champion > Improving road safety > Better roading infrastructure

Whether it is altering speed limits, give way rules or transport funding, the Government and transport authorities are constantly considering changes that will impact drivers, and the AA is there representing our Members. Our work involves us dealing with a range of Government agencies, Ministers and political parties.

We undertake our own research, look at international experience, canvas our Members’ views and use all of this to form our position on issues. With our Membership being so large, it includes a wide range of views, so we regularly survey random samples on both national and local issues. Our 17 District Councils throughout the country are each made up of 10 volunteer AA Members who are the voice of AA Members in their area.

Advocacy


Fuel costs are a common gripe as motorists struggle with sometimes daily fluctuating prices.

Fuel price affects more than just the cost of motoring, they can have a significant impact on household budgets. As a result many Kiwi motorists are on the lookout for the best deal.

The launch of AA Smartfuel in 2011 enabled the club to provide not just cheaper fuel as a Member Benefit, but a discount to all motorists who choose to participate.

Within three years, AA Smartfuel delivered more than $150 million in fuel savings to Kiwi motorists.

This figure continues to grow as more motorists realise the benefits of participating in the programme.

The focus continues on adding more retailers to the partner village to provide more opportunity for motorists to earn fuel discounts.

AA Smartfuel

For many, an AA Centre, AA Auto Centre or testing station is the first stop on the journey towards obtaining a driver licence.

More than a million driver license transactions are handled by the AA every year on behalf of the Transport Agency, which accounts for about 80% of all New Zealand transactions.

The AA conducts computerised theory tests and takes bookings and payments for the next stages of the graduated licence process involving practical tests. While the AA does not conduct practical driver testing, many AA sites are used as a base by the testers.

For those intending on driving overseas and requiring an internationally recognised licence, driving permits are also available through the AA and online through the AA website.

driver Licensing and Motor Vehicle Licensing


The AA is well represented across the country with its AA Centres, Vehicle Testing Stations and Auto Centres. In small townships the AA maintains a presence through its network of agencies and AA Licensed Repairers.

nelsonrichmond

ChristchurchCentral CityHornbyPapanui

dunedin

Blenheim

Invercargill

Oamaru

rangiora

ChristchurchRiccartonShirleySydenham

Timaru

Ashburton

BalcluthaGore

Greymouth

Hokitika

Mosgiel

Motueka

Queenstown

rolleston

Westport

Member and customer channels

Whangarei

new Plymouth

HamiltonFranktonTe Rapa

MatamataTauranga

Mt Maunganui

rotorua

Taupo

WellingtonCentral CityLower Hutt

Levin

Masterton

Hastings

Feilding

HamiltonFive Cross Roads

Hawera

Palmerston north

Whanganui

napier

Paraparaumu

WellingtonLambton QuayLower Hutt

Porirua

AucklandConstellation DriveAlbert StreetMeadowlandsLynn MallManukauOrewaPenroseQuay StreetTakapunaWestgate

Pukekohe

Cambridge

dargaville

Gisborne

Huntly

Kaikohe

Kaitaia

Kawerau

Kerikeri

Morrinsville

Opotiki

Paeroa

Stratford

Taihape

Taumarunui

Te KuitiTe Puke

Thames

Tokoroa

Whakatane

Waipukurau


We have 38 AA Centres in cities and towns across New Zealand, providing many AA Members, customers and motorists with access to a wide range of products and services.

Nearly 250 staff assist in delivering more than 70 products and services available through the AA. Our Centre staff are trained customer service consultants who can assist Members and non-members with:

> Membership joins and renewals

> Free maps and guides for Members and AA Smartfuel cardholders

> Insurance services – car, home, contents, life, funeral cover

> Financial services – car loans, term deposits

> Driver and vehicle licensing services

> Inland Revenue Department (IRD) personal number applications

> Travel information and bookings

> Wide range of retail merchandise

> RealestateAgentAuthorityidentificationcards

> Passport photos

AA Centres

Our Club

Car LoansGet behind the wheel with a better deal


An AA card is tucked into the wallets of nearly a million New Zealanders who are Members of the club.

At the beginning of 2015, there were more than 940,000 personal Members and the number continues to grow. Together with vehicle-based members, the club has nearly 1.5 million Members.

More than half of our personal Members have been with us for longer than 10 years.

Our Members are at the heart of everything we do. The Association exists to deliver on service, value and honest guidance to our entire Membership base centred on six key areas:

> Motoring support

> Member discounts

> Tourism

> Advocacy

> Insurance and Finance

> Driver education

With our focus on these six areas, the AA is more than just a breakdown service. This focus also enables us to improve what we call the subscription value equation – essentially working to ensure that we increase the value of the benefits Members receive while continuing to hold the cost of subscription, which has not risen for many years.

We further enhance the value Members receive by providing increased discounts in recognition of Member tenure with the Club. Many Members receive signicantly more value for their Membership than the cost of renewal.

AA Membership


RoadserviceWhile there are a host of reasons for motorists to join the AA, the threat of worrying clunking noises under the bonnet on a cold and rainy night, a dead battery or even a flat tyre remains a common reason for new joins.

While the chance of a major mechanical breakdown has diminished over the years as car reliability improves, motorists continue to require roadside assistance for a range of issues including technical and mechanical problems, flat tyres, flat batteries and keys locked in cars.

Since the first roadside patrol service provided by the AA in 1925, technology has enabled a faster, more efficient and sophisticated service. The AA Roadservice team is continually looking at streamlining and improving the service and Member experience.

Today Members can request AA Roadservice and breakdown assistance through the AA’s website, phone or through the AA Roadservice app, which takes advantage of GPS technology to locate Members more quickly than ever. The AA attends nearly half a million Roadservice requests every year.

Ultimately, having access to 24/7 nationwide roadside assistance provides motorists with security out on the road.

AA Motoring

The NZ Automobile Association is an incorporated society formed following the merger of the independent motoring clubs in 1991.

We exist to service our Members, so it’s imperative for them all to have a voice and interaction if they want or need to.

To ensure local representation there are 17 AA District Councils spanning the country, which are elected by Members an at annual meeting every year. The councils meet monthly and discuss issues related to motoring affairs national policy and local transport issues. Each district elects one representative to sit on the AA’s National Council – the main governing body of the association.

The National Council meets quarterly to consider matters of national policy for motoring affairs and to receive reports from both the AA Board and Chief Executive. The National Council is responsible for approving the AA accounts and budget.

Delegated authority is provided from the National Council to the AA Board to manage the commercial activities of the association. The Board is made up of a President, Vice President and six members elected from past and sitting National Councillors. The Board meets monthly and works closely with the Chief Executive.

Our head office is in central Auckland, while the advocacy team is based in Wellington to be near government organisations such as the Transport Agency and related bodies.

Governance

OUR BOARDBack from left: Lyndsay Tait (Wanganui), Warren Masters (Canterbury), Steven Grant (Auckland), Mark Winger (Auckland). Centre from left: Murray Lander (Club Sectretary), Brian Gibbons (CEO), Brett Flintoff (Southland), Gary Stocker (Nelson), Front from left: Trevor Follows (President/Waikato), Roger Bull (Hawkes Bay).


AA Compliance sitesThe AA operates six Compliance sites at four AA Vehicle Inspection Centres (Tauranga, Napier, Sydenham, Glenn Innes and New Lynn) and at the two New Plymouth Vehicle Testing Stations. Additional to these are 11 third party compliance sites. More than 31,000 imported vehicles are processed through these sites annually.

AA Licensed RepairersWith more than 140 AA Licensed Repairers throughout New Zealand, Members and motorists have access to high quality and consistent servicing and workmanship.

Members of the Licensed Repairer network are required to meet and demonstrate exacting standards in order to achieve AA certification.

AA Battery ServiceEvery year more than 700,000 Member callouts relate to car battery problems.

These issues often occur at the worst possible time, so the arrival of a fully equipped battery van with an expert who can resolve the problem on the spot boosts efficiency and ensures Members are back on the road faster.

As a result, the AA prioritised building its fleet of battery vans to assist Members and other motorists who require their flat battery to be either charged or replaced.

AA Members receive a discount on the cost of new batteries.

Up to 96% of a battery is recyclable so the AA encourages its Members to utilise its recycling scheme to ensure batteries are disposed of in an environmentally friendly way.

Business Vehicle SolutionsAlongside providing roadside assistance to more than 940,000 personal Members, the AA also provides Roadservice to half a million vehicles with AA Business Vehicle Solutions.

Business Vehicle Solutions provides Roadsevice and related services to businesses. Clients include vehicle manufacturers, insurance companies, motor vehicle dealerships, fleet leasing companies, car rental and campervan companies and other businesses.

Motoring ServicesFor more than a century the AA has provided expert motoring advice and car information to Members and the wider motoring public.

Alongside that, the Motoring Services division has developed a commercial operation centred on a network of 29 AA Auto Centres and AA Auto Service & Repair sites, eight AA Vehicle Testing stations and nationwide Vehicle Inspection services. Rounding out the network are about 140 AA Licensed Repairers.

When the WoF certification requirements were extended to a 12 month period from six months, Motoring Services added a further free Member Benefit called the AA Safety Check to provide Members with surety their car is safe and roadworthy in between WoF checks.

AA Driver and Vehicle Licensing AgentsAdditional to the AA’s owned and operated AA Centres are 36 AA Driver and Vehicle Licensing Agents which operate from existing businesses in smaller townships.

This partnership with local businesses enables the AA to provide a nationwide service to Members, motorists and customers and includes services such as Membership joins and renewals, travel guides and maps, driver and vehicle licensing requirements, international driving permits, passport photos and Inland Revenue Department applications.

AA Vehicle Testing StationsThe AA has eight Vehicle Testing Stations located in Wanganui, Hornby, two in New Plymouth and two in Auckland (Glen Innes and Sunnybrae) all of which offer Certificate of Fitness (CoF) for heavy vehicles, passenger vehicles and rental vehicles, and Warrant of Fitness (WoF). These sites enable customers to drive in for a WoF or CoF without having booked in advance and offers customer a relaxing environment in a lounge where they can enjoy tea and coffee facilities and magazines while they await their vehicle.

AA Auto Centres / AA Auto Service & Repair outletsAA Auto Centres and AA Auto Service & Repair sites are located across New Zealand and offer both Members and the public a premier vehicle repair service. No matter where an Auto Centre is located, customers can expect a consistent standard of service. Members receive an AA Member discount of 10%.

AA Vehicle Inspection sites The AA owns and operates six Vehicle Inspection sites which are located in Tauranga, Napier, Blenheim, Christchurch, Oamaru and New Lynn. AA Vehicle Inspections are also offered at selected AA Vehicle Testing and AA Auto Centre sites. Mobile inpections in Auckland, Hamilton, Wellington, Paraparaumu, Ashburton and Timaru. We inspect more than 135,000 vehicles annually.


AutoGlassIn 2010, AA AutoGlass was added to the suite of services provided to Members and the wider motoring public.

Chip repairs and windscreen replacements that are reliable, guaranteed and mobile ensures that motorists can remain mobile with minimal hassle if an errant stone creates spider-webbed vision.

Most parts of New Zealand are covered by the mobile service.

In addition, AA AutoGlass can install a temporary side glass window on the spot as a stop gap ahead of a complete replacement being arranged. This service is free for AA Members.

Driver Education Earning a driver licence is a Kiwi rite of passage, one nearly every teenager embarks on usually between the ages of 16 and 18.

In 2012, as part of its Safer Journeys strategy, the government introduced a tougher practical restricted licence test, which immediately saw a significant decline in the pass rate from about 80% to 50%.

The AA supports a stringent testing regime. Those who pass the test have demonstrated they are good enough to go through to the next stage of the graduated licensing process and proven to themselves and other motorists they are safe on the road.

Driver training has been offered by the AA for more than a decade, but since 2012, the Club has refocused its efforts to provide a complete education programme for both new learners and also experienced motorists.

In 2013, the school developed the Learn to Drive the AA Way programme, which encompasses the education needs of new learner drivers right through to experienced motorists using a range of tools centred on professional driving lessons and defensive driving courses.

Part of the programme is an initiative to provide new learner drivers with the right skills right at the beginning of their journey to become safe motorists for life. AA Ignition provides new learner drivers, who are either AA Members or have family members in the Club, with three free driving lessons. This provides a solid foundation on which new learner drivers can build, equipping themselves with vital skills and information required to be a competent driver.

This is a Member Benefit developed to ensure the AA is doing its part to improve road safety outcomes in line with the United Nation’s Decade of Action focused on halving the global road toll by 2020.

With more than 100 driving instructors throughout New Zealand, the AA Driving School has a large base of professionals dedicated to ensuring new drivers are safe behind the wheel.

AA Driving School defensive driving courses help to round out the education. The courses are approved by the NZ Transport Agency, which means new learners can reduce the time they spend on a restricted driver licence while learning defensive driving skills.

Three free driving

lessons


Established in 1993 Qualmark is jointly owned by Tourism New Zealand and the AA. Qualmark is the official quality assurance system for the New Zealand tourism industry which enables travellers to identify quality places to stay, things to do and ways to travel around New Zealand.

Qualmark uses a star grading system for accommodation which includes a range of accommodation options for travellers on any budget including hotels, motels, backpackers, B&Bs and holiday parks. Accommodation providers registered with Qualmark have undergone a rigorous assessment to gain a star rating of between one start (acceptable) and five stars (exceptional).

All businesses that display a Qualmark star rating or endorsed logo are also assessed on their environmental performance.

Qualmark

Further information, competitions and travel discounts are provided to Members in a regular email newsletter promoting domestic travel. Campaigns such as AA’s iconic 101 Must-Do’s for Kiwis, which since first launching in 2006 has helped to grow domestic tourism and inspired Kiwis to get off the couch and explore our wonderful country, are run frequently.

Tourism is a cornerstone of the New Zealand economy with domestic travel producing 59% of total tourism spend in New Zealand.

While the domestic sector doesn’t bring in the sought-after export dollars of in-bound travel, it continues to represent the bread and butter revenue for many Kiwi accommodation and leisure operators.

In the decades since, the tourism arm of the AA has gone through a number of changes, each focused on providing not just travel-based services to Members, but actually encouraging them to get out and explore New Zealand.

In more recent years, a number of campaigns were developed to assist with growing the domestic sector alongside a collection of partnerships with regional tourism organisations, operators, government entities and industry-good bodies.

AA Traveller is now a flagship brand within the Club providing a wide range of services and free information for Members, New Zealand travellers and visitors through AA Centres, agents and website.

Every year more than three million maps and accommodation guides are published. Maps are free to AA Members and AA Smartfuel cardholders through AA Centres and the regional and national accommodation guides are free to all, distributed throughout the country.

AA Traveller


AA Life Insurance is a joint venture between the AA and Asteron Life Limited (the specialist life insurance company of Suncorp New Zealand) and offers Members and the public a range of life insurance options, including accidental death, term life and funeral cover.

AA Members enjoy a discounted rate on policies, while Members and customers may also be entitled to a healthy lifestyle discount for life cover.

AA Life

AA Insurance was launched in 1994 as a joint venture between the AA and GIO Australia to provide motor insurance, and house and contents insurance to the public. Today Suncorp Group and the AA are the joint venture partners of AA Insurance Limited.

AA Insurance employs more than 580 staff throughout New Zealand, provides insurance services to more than 300,000 customers and manages more than 500,000 motor, home and contents insurance policies.

Products and services on offer have been developed with Kiwis in mind and while AA Members enjoy a discounted Member rate, insurance policies remain competitive for non-members.

AA Insurance


Communication Channels

Social MediaBy the end of 2014, more than 85,000 fans were receiving updates from the AA on social media platform Facebook. A further 44,000 subscribe to the AA Traveller Facebook page and more than 150,000 to the AA Smartfuel page which features popular competitions and news of the latest fuel saving offers.

The AA uses Facebook to instantly provide information about offers, competitions and also helpful motoring hints and travel ideas.

With nearly a million individual Members and a wide range of services and offers, the AA prioritises both widespread and targeted communications. While many people join the AA for the peace of mind guaranteed roadside assistance provides, the Club provides much more, particularly for Members.

WebsiteThe AA website provides information on all parts of the AA and enables people to join the club online, organise travel insurance, make car loan enquiries, book driving lessons and defensive driving courses as well as selling or buying cars.

There is also a wealth of information available to assist people to better understand all facets of motoring.

EmailsAs one of the biggest clubs in New Zealand, the AA has an extensive database that enables the organisation to reach out to hundreds of thousands of Members with exclusive offers, advice on new Member Benefits and competitions.

When new Members join the AA, they can opt in to a comprehensive suite of welcome emails that provide them with all the information they need to maximise their membership.

AA Directions MagazineDistributed to more than half a million households three times a year, AA Directions magazine is free for AA Members.

It aims to inspire people to get out and enjoy travelling around New Zealand and also inform Members of the latest news, views and promotions from the AA.

Each issue provides highlights of the latest advocacy issues from the Motoring Policy team in Wellington and features award-winning travel stories from within New Zealand and overseas.

An electronic version is also available for download at aadirections.co.nz

AA Roadservice appIn 2014, the AA launched its AA Roadservice app which enables Members to provide location, car details and information on the nature of the problem in three steps without making a phone call.

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AA Travel InsuranceAA Travel Insurance is available for Members and the public online and in-store at AA Centres. Through the AA’s partnership with Allianz Travel Insurance, the AA offers two policy levels:

> Comprehensive Policy – a top of the range product with higher limits and extended benefits

> Essentials Policy – covers the main risks faced by a traveller with restricted benefits and lower policy limits.

For many, the purchase of a car is second in value only to buying a house. In many cases, a car represents the biggest single purchase.

Financing any major purchase is an important decision, which is why for more than two decades AA Finance has been there to support Members and the wider public with competitive loans.

Over the last 20 years, AA Car Loans has been recognised for its competitive pricing, special Member Benefits and high service standards.

AA Finance

The AA is a member of the Federation Internationale de I’Automobile (FIA), which enables the AA to maintain links with overseas motoring clubs and ensures New Zealand AA Members can access reciprocal services when they travel through affiliated clubs’ countries.

AA and the AA logo are registered trademarks and the colour combination YELLOW and BLACK is a trademark of The New Zealand Automobile Association Incorporated.

©The New Zealand Automobile Association Incorporated 2015. All rights reserved.

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