1 MARCH 2021New Zealand

THE NEW ZEALAND VEHICLE DEALERrsquoS NEWS SOURCE

MARCH 2021 CONZ

Page 03BORDER DELAYS SET TO CONTINUE

Page 26OUTBACK GOOAT

Page 12FORMER UBER AUTONOMOUS EXPERT TALKS

GLOBAL VEHICLE LOGISTICS NZ middot JAPAN middot AUSTRALIA middot UK middot EUROPE | wwwautohubco

The market leader for over a decadeShift to the Autohub Team and

experience the Autohub difference

GLOBAL VEHICLE LOGISTICS NZ middot JAPAN middot AUSTRALIA middot UK middot EUROPE | wwwautohubco

The market leader for over a decadeShift to the Autohub Team and

experience the Autohub difference

NZAI JOINS THE NZXP06

Mechanical Breakdown InsurancePayment Protection Insurance

Loan Equity InsuranceMotor Vehicle Insurance

wwwautosureconz | 0800 267 873

Mechanical Breakdown InsuranceGuaranteed Asset Protection Insurance

Payment Protection InsuranceCar Insurance

2 MARCH 2021New Zealand

EDITORIALTALK

RICHARD EDWARDSMANAGING EDITOR

H opefully by the time you read this Auckland is out of the latest round of Level 3 lockdown restrictions The choices

of a small few mean damaging restrictions for so many - including the dealer community Though to be fair you all seem to be getting pretty good at operating under the difficult circumstances The solid vehicle registration statistics certainly show that

For us here at Auto Media Group the lockdown mean pushing our electric vehicle conference The EVent back by a few weeks Have no fear we will make it bigger and better We also have not forgotten our COVID-hit AutoTalk Live event and will have more on that soon

SAFETY FIRST

Last week I travelled to Wellington to work with Waka Kotahi NZ Transport Agency on a webinar discussing the various vehicle safety rating systems and how they relate to the vehicle retail industry

My read It was great to see so many dealers interested and that there is still work to be done as to how the systems can be best understood and communicated I am working on it

My recommendation is however that the trade does not ignore ratings or the safety debate as a whole As has been discussed in recent months Waka Kotahi are looking at other ways of influencing the safety of what enters the fleet And that could mean new restrictions Understanding what you can source and sell that rates well is going to be key to getting ahead of the situation

Speaking of ratings in the last week we have seen the issue of new vehicle ratings pop up with the awarding of a zero-star rating to the new Mitsubishi Express a van that carries a five-star Vehicle Safety Risk Rating when sold as

a used Renault Traffic or a three-star EuroNCAP under the same badge

ANCAP rarely buys and crashes vans and is aligned with Euro NCAP to allow crash data to transfer So arguably they spent the estimated $500k it takes to crash a vehicle to make an example and point of the Mitsubishi

Should the van be safer Yes Should Mitsubishi have been made an example of I am not so sure Perhaps there needs to be a broader discussion on van safety including such things as the major brand vans with five-star ratings sold with load barriers as an optional extra Or the popular van with a centre front lap-belt

BARRY JOINS AUTOTALK

I am very pleased to announce that AutoTalk magazine from the April issue has a new editor I am not going anywhere I will remain managing editor but need to free up a little time for the array of new media we will bring you in 2021

Robert Barry well known to many in the trade will take over the day-to-day operations of NZs best automotive trade magazine Robert has been with us on and off for a number of years and currently edits our Australian edition

He will continue to do so with a merged editorial team of myself Robert and veteran journalist Mike Stock covering both countries

This level of experience can only mean great things for the publication

Thanks

Richard EdwardsMANAGING EDITOR

HELLO LOCKDOWN MY OLD FRIEND YOUVE COME TO MESS WITH ME AGAIN

3MARCH 2021 New Zealand

Supply chain disruptions and MPI inspections at the border are having a big impact on used

vehicle importers who are having to wait up to two months for stock to arrive from Japan

Autohub chief executive Frank Willett says the situation is ldquounfortunaterdquo however he is hoping things return to normal in the next few months ldquofingers crossedrdquo

Willett says there is already a four-to-six-week delay in Japan for shipping and imports then face delays of up to a week at local ports and then another ldquoseveral weeksrdquo for vehicles to go through compliance workshops

ldquoThere are the normal number of RoRo vessels arriving from Japan at present however they are facing delays upon arrival due to often arriving too close to each other MPI onshore verification taking quite a bit of time COVID procedural measures and possibly Americarsquos Cup shipping lane closures from time to time

ldquoFurther compounding issues for the used import trade are delays in getting stock from Japan to NZ due to shipping lines clearing the backlog of new vehicle orders to Australia and NZ

ldquoUnfortunately all issues appear to be creating a perfect storm by the time cars arrive at compliance as they are doing so with little forward notice and given the volumes currently often bottlenecks and backlogs occur there

alsordquo Willett says

VINZ chief executive Sean Stevens says from the vehicle inspection perspective delays are evident in terms of flow

ldquoI think the main delay at compliance shops is partly due to ESC and partly due to availability

ldquoWhat is entering the country is newer but with higher kms and requires more repairs This combined with an increase in focus from the regulator means that the overall failure rate at entry has increased

ldquoThis in turn puts pressure on repairers and certifiers to turn vehicles around in a timely manner causing backlogsrdquo Stevens says

Meanwhile border staff have been subject to more rigorous COVID risk management However Ports of Auckland spokesperson Matt Ball says MPI inspections are having the biggest impact there

One recent RoRo vessel was in port for nine days as its whole cargo of around 1800 vehicles was inspected By comparison this would usually take one day to unload Ball says

COVID-19 has impacted MPI inspection of vehicle imports with seven MPI officers returning to New Zealand from Japan in March last year

All verification inspections of arriving used vehicles now take place at Ports of Auckland

MPI says it has introduced a range of measures to further mitigate biosecurity risk which includes

bull Vessel discharge plans that ensure all parties involved are working together to manage biosecurity risk

bull Restricting the number of vehicles and the manner in which they can be discharged at any one time from a vehicle carrier

bull Mobilising officers across Auckland to support the variable workloads

bull Restricting initial vehicle discharge to one port (Auckland) which has the best infrastructure to manage biosecurity risk

ldquoWe have made it clear to industry that compliance with New Zealandrsquos biosecurity requirements helps avoid delays at the borderrdquo MPI says

USED VEHICLE INDUSTRY FACING MONTHS OF DELAYS

SEAN STEVENS

FRANK WILLETT

3MARCH 2021 New Zealand

Supply chain disruptions and MPI inspections at the border are having a big impact on used

vehicle importers who are having to wait up to two months for stock to arrive from Japan

Autohub chief executive Frank Willett says the situation is ldquounfortunaterdquo however he is hoping things return to normal in the next few months ldquofingers crossedrdquo

Willett says there is already a four-to-six-week delay in Japan for shipping and imports then face delays of up to a week at local ports and then another ldquoseveral weeksrdquo for vehicles to go through compliance workshops

ldquoThere are the normal number of RoRo vessels arriving from Japan at present however they are facing delays upon arrival due to often arriving too close to each other MPI onshore verification taking quite a bit of time COVID procedural measures and possibly Americarsquos Cup shipping lane closures from time to time

ldquoFurther compounding issues for the used import trade are delays in getting stock from Japan to NZ due to shipping lines clearing the backlog of new vehicle orders to Australia and NZ

ldquoUnfortunately all issues appear to be creating a perfect storm by the time cars arrive at compliance as they are doing so with little forward notice and given the volumes currently often bottlenecks and backlogs occur there

alsordquo Willett says

VINZ chief executive Sean Stevens says from the vehicle inspection perspective delays are evident in terms of flow

ldquoI think the main delay at compliance shops is partly due to ESC and partly due to availability

ldquoWhat is entering the country is newer but with higher kms and requires more repairs This combined with an increase in focus from the regulator means that the overall failure rate at entry has increased

ldquoThis in turn puts pressure on repairers and certifiers to turn vehicles around in a timely manner causing backlogsrdquo Stevens says

Meanwhile border staff have been subject to more rigorous COVID risk management However Ports of Auckland spokesperson Matt Ball says MPI inspections are having the biggest impact there

One recent RoRo vessel was in port for nine days as its whole cargo of around 1800 vehicles was inspected By comparison this would usually take one day to unload Ball says

COVID-19 has impacted MPI inspection of vehicle imports with seven MPI officers returning to New Zealand from Japan in March last year

All verification inspections of arriving used vehicles now take place at Ports of Auckland

MPI says it has introduced a range of measures to further mitigate biosecurity risk which includes

bull Vessel discharge plans that ensure all parties involved are working together to manage biosecurity risk

bull Restricting the number of vehicles and the manner in which they can be discharged at any one time from a vehicle carrier

bull Mobilising officers across Auckland to support the variable workloads

bull Restricting initial vehicle discharge to one port (Auckland) which has the best infrastructure to manage biosecurity risk

ldquoWe have made it clear to industry that compliance with New Zealandrsquos biosecurity requirements helps avoid delays at the borderrdquo MPI says

USED VEHICLE INDUSTRY FACING MONTHS OF DELAYS

SEAN STEVENS

FRANK WILLETT

4 MARCH 2021New Zealand

Fast Flexible IndependentDiscover what Avanti Finance can do for your dealership

avantifinanceconz | 0800 286 020

Heartland Bank has announced it is reviewing its vehicle finance division which is commonly

known under the historic MARAC brand

The confirmation came within its half-year profit announcement in which it posted a net profit after tax of $441 million for its half year result up $42m on the same period last year Motor finance net operating income was up $29m (96) year-on-year to $33m

The growth was mainly from the motor dealer book via car dealerships brokers and partnerships such as Kia Finance and JaguarLand Rover Financial Services

Heartland says investment in digital enhancements such as a self-service online vehicle loan application helped underpin strong performance of the motor book which resulted in a 22 increase in new business origination compared with the same period last year

The holding structure of its motor vehicle finance business is also under review ldquoto provide access to flexible

and efficient capitalrdquo

ldquoNo conclusions have yet been reached however work is underway to set the foundations which would allow Heartland to separate the business to be a Group subsidiary should it choose to do sordquo the company says

Alongside motor finance the company also has New Zealand banking financial technology and Australia (primarily comprising reverse mortgages) as key business areas

Over the last six-month period various new digital platforms were developed including an online quoting tool for business intermediaries online calculator for Kia Finance integrated biometrics for motor dealers and a broker portal for Australian reverse mortgage broker partners ldquoThe self-serve online application for Heartland Bankrsquos motor product allows New Zealanders to apply for a vehicle loan online at any time and receive a decision in minutes Development of a similar solution for dealers is currently underwayrdquo it says

During FY2020 Heartland took a

COVID-19 economic overlay of $96m to provide a buffer against any future losses Despite ldquopositive indicators and a general improvement in the economic forecast there remains uncertainty in relation to the impact of the pandemic on the overall credit quality of Heartlandrsquos bookrdquo the company says

While ldquoforecasts about future economic conditions have improved all forecasts make assumptions around important matters such as when New Zealandrsquos border will re-open the nature and extent of any further lockdowns when and how effective a vaccination programme may be and how key markets (such as the used car and primary produce markets) may respondrdquo

ldquoUntil such time as there is more certainty that downside scenarios may not adversely affect Heartlandrsquos portfolios Heartland has decided to retain its COVID-19 overlayrdquo

digital channels

HEARTLAND CONSIDERING SPLITTING OFF VEHICLE FINANCE DIVISION

AA ADDS ODOMETER PARTNERS

AA Motoring has signed up two new odometer verification partners Bordercheck and

Jacanna

The signings follow AArsquos announcement last December that it was ending its exclusive odometer verification partnership on Japanese vehicle imports with JEVIC so it could also work with other industry partners AA Motoring Services general manager Jonathan Sergel says the addition of the service providers alongside JEVIC brings dealers choice

ldquoBy offering a further two optionshellipdealers now have significant choice for this processhelliprdquo

AA Motoring is also preparing to launch its AA Preferred Dealer Network next month A cornerstone of that network is the requirement for dealers to have AA Odometer Verified window stickers on their freshly imported vehicles says Sergel

ldquo(The two new) partnerships will mean more quality dealers will be able to potentially join usrdquo

Dealers wanting to join the network also need to sell AA Appraised Used Cars (a minimum of 80 of vehicles available through the dealership must be AA Appraised)

They also need to have a tidy

dealership and a customer-first mentality says Sergel

In an arguably controversial move freshly imported vehicles will need to have completed AA Entry Compliance

AA Preferred dealers will have AA Motoring branding on their signage and digital channels

JONATHAN SERGEL

5MARCH 2021 New Zealand

Importing cars Made easy

nichibojapancomwwwautosureconz

ADTORQUEEDGE

DELIVERING YOUR MARKETING SOLUTIONS

5MARCH 2021 New Zealand

Importing cars Made easy

nichibojapancomwwwautosureconz

ADTORQUEEDGE

DELIVERING YOUR MARKETING SOLUTIONS

6 MARCH 2021New Zealand

AutoTalk Magazine and autotalkconzare published by Auto Media Group Limited

8152 Quay Street PO Box 10 50 10 Auckland City NZ 1030Ph 09 309 2444

Auto Media Group Limited makes everyendeavour to ensure information containedin this publication is accurate however we are not liable for any losses or issues resulting from its use

Annual subscription (printed amp digital) $114 + gst ($13110)

Printed by Alpine Printers

autotalkconz

autotalkcomau

transporttalkconz

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evsampbeyondconz

evtalkcomau

MANAGING EDITOR

Richard Edwards 021 556 655 richardautomediagroupconz

SENIOR JOURNALIST

Michael Stock 021 240 2402michaelautomediagroupconz

BUSINESS MANAGER

Dale Stevenson 021 446 214 daleautomediagroupconz

GROUP GENERAL MANAGER

Deborah Baxter 027 530 5016 deborahautomediagroupconz

PUBLISHER CHAIR

Vern Whitehead021 831 153 vernautomediagroupconz

INDUSTRYSUPPORTER

The parent company of 2Cheap Cars and its NZ Motor Finance division announced last month a new

name new leadership and listed on the NZX

2CC Holdings was renamed NZ Motor Finance late last year with new directors Karl Smith as chairman Charles Bolt Michele Kernahan and Tracy Rowsell appointed joining founders Eugene Williams and David Sena

NZAI says its long-term strategy is to leverage its retail business to build a diversified automotive services group with aspirations to rival the countryrsquos other main used car automotive group Turners

The plans are not the first time 2Cheap has attempted to list with previous discussion of an attempt in 2015

David Page who has a history in vehicle and equipment finance has been appointed chief executive

Smith a professional independent director who brings over 40 years of extensive corporate executive and governance experience was appointed as Board Chair in September last year His current directorships include ndash VetNZ Limited Halls Group Limited (Chair) Hamilton Jet and Forthill Property Limited (Chair) Smith recently came off the Ports of Auckland Board and has strong shipping and logistics expertise

The company says 2 Cheap Cars is responsible for approximately 8 of all used car imports into New Zealand generating sufficient earnings to grow its vehicle finance company in line with NZAIrsquos long-term plans for growth

The listing itself was long mooted by Williams but the company had struggled to get there It went off in relatively muted fashion with minimal trading at the $130 listing price At the time of writing the stock is sitting at $129

It has subsequently reported earnings guidance for the year to the end of March 2021 predicting net profit after tax (NPAT) excluding listing costs to be in the range of between $33m to $37m

AutoTalk managing editor Richard Edwards sat down - over Zoom during lockdown - with Smith and Page to discuss the news 2Cheaps past and plans for the future

Richard Edwards So it has been quite a week for NZAI Can you tell me how you think the listing went

Karl Smith This is whats called a direct listing on the NZX so its not

2CHEAP PARENT RENAMES LISTS ON NZX

to page 8

DAVID SENAEXECUTIVE DIRECTOR amp

CO-FOUNDER

EUGENE WILLIAMS EXECUTIVE DIRECTOR amp

CO-FOUNDER

7MARCH 2021 New Zealand

to page 8

an IPO Its not raising any capital but what its doing is its a smoother way for businesses emerging businesses like our own to get profile to get our story out there to really get a good understanding

We achieved it after a hell of a lot of grunt a lot of effort and yeah were pleased to have made that first too but the hard work is now in front of us

Richard Edwards So what was the road to get here How long has this been in the works

Karl Smith Its been on the go for a while but probably more intensively since about the middle of 2020

Richard Edwards And David when did you join the project

David Page I joined in December last year so Ive only been on board for a few months But Ive been having ongoing conversations with the team at 2Cheap for over a year now I initially met Eugene through a connection through ASB and had ongoing conversations about maybe potentially coming on board in some shape or form

Richard Edwards And what do you think you bring to the car industry Youve got a banking background How much of that is transferable

David Page A considerable amount is transferable but I also have a background and family history in and around the motor trade which you might not be familiar with My father my grandfather spent their entire lives working in and around the motor trade

Having left university I got into the automotive finance side firstly with AGC Finance then Marac Finance and ultimately set up ASB Asset Finance One of the key attributes in my career was around working for ASB and running their branch network We had 120 branches spaced throughout the country 1300 employees So the skills around that sort of large operational management I think are quite transferable

If you couple in sort of the finance

opportunity that sits in front of our NZAI business through our New Zealand motor finance team thats quite considerable

Richard Edwards Karl what kind of work was required to bring 2Cheap up to a standard where it could be listed The idea is not new but from the outside it appears issues have got in the way of plans in the past

Karl Smith They had some trip ups when they were going pretty fast - fast and furious I mean this place has been going for 10 years So theyve grown a business from nothing to quite a substantial number today And so I think following the trip-ups - the Commerce Commission breaches employment payment issues and so forth - they have stepped back and surrounded themselves with some decent advisers

Richard Edwards So who is in control of the company now It is Eugene and David or the new team

Karl Smith I think first and foremost as the chairman of the board I lead that board I interface with our stakeholders our investors In reality Eugene and David can now stick to their knitting

In terms of Eugene his marketing capabilities and in David Senas case the procurement pathway through Japan and to New Zealand They report to David Page as the CEO

Thats a big step for founders you dont just hand over the reins Theyve actually realised that if they really want to capitalise and we grow the business they need to surround themselves with good advisors and good rigour and governance And I think thats a fantastic recognition

Richard Edwards David on a day to day basis how often are you seeing Eugene and David

David Page Well before the lockdown in person every day So working really closely together Theyve got a lot of skills and expertise as Karls touched on Eugene is very much running the sales and marketing side independently as Karl says and David very much the procurement side So they are very much key in the business and want to retain their roles within that business and looking at those areas of expertise

My focus has been up until now getting everything lined up for the listing Im now moving my focus more into some

from page 7

NZAI CHAIR KARL SMITH AND CEO DAVID PAGE AT THE COMPANYrsquoS MT WELLINGTON HEADQUARTERS

8 MARCH 2021New Zealand

DEALERTALK

of the operational things we can do to gain efficiencies and continue to leverage the value of our wider supply chain

Richard Edwards It seems to me as an outsider that 2Cheap has had a lot of great components and ideas but they were at times not quite working together perfectly

David Page Yeah I think thats right But I also think its a challenging industry Theres a lot of component parts to it as youve touched on So making those work in unison through things like COVID and other challenges weve had I think thats the opportunity for us to get better

Richard Edwards Now and one of the releases around the listing there was discussion that you guys want to be I guess be the next Turners I mean what does that mean What is the future for New Zealand Automotive Investments in 2CheapCars Will we see you guys buying into other dealerships Will we potentially see entering the new vehicle industry

Karl Smith Well I dont think we used the term as us being the new Turners Weve got a point of difference that were trying to achieve on our own basis Weve got opportunities to grow our finance company theres no question about that Thats primarily a big opportunity that we have not been able to capitalise upon

We always use the term Well never say never to growth by acquisition But for us I think weve got some ideas which well keep to ourselves about wanting to grow our penetration in various categories in New Zealand

We wont be going into the new car market Thats for sure Thats not our game at all

Richard Edwards So the key is more around growing the 2 Cheap business rather than necessarily expanding

outside of that space

Karl Smith Yeah I think thats absolutely right Its a very fragmented dealership world in New Zealand for secondhand car dealers I think our strength is that we are into it Were in control of dealerships and were in connection with what are the requirements of the vehicles that are required for New Zealand And clearly the Governments laid out a pathway for lower emissions We think were in a really good position to be able to capitalise upon that

Richard Edwards You see the new Clean Car Standard as an opportunity rather than a challenge

Karl Smith Huge opportunity Theres no question I think were already bringing in reasonable numbers of EVs and hybrids

David Page I think thats another opportunity for the whole market really because certainly the industry probably listening to this call will understand that Theres a lot of consumers out there that perhaps dont understand the ins and outs of owning an HEV or an EV So theres a piece of work to be done there And I think then well see different levels of adoption over time which were well-positioned to be involved with

Richard Edwards Youve mentioned a couple of times Now you want to make the most of your New Zealand Motor Finance operation Does that mean we could see your partnership with Finance now end

David Page From my perspective its not about that coming to an end I think over time its natural that well write more and more finance through New Zealand Motor Finance But certainly our relationship with Finance Now is a key relationship that were looking to enhance Ive had good conversations with them around that

So its not about that coming to an end Its about us working with them and working with New Zealand Motor Finance

They offer slightly different solutions for customers at the moment They serve slightly different parts of the market Theres always going to be an opportunity for them to work alongside each other

Richard Edwards Could New Zealand Motor Finance go to market and offer finance through other channels

David Page Its something thats possible but its not something were looking at right at the moment The finance business is set up independently As Karl said over the horizon theres lots of opportunities in front of us

Richard Edwards Recent years have seen a lot of vertical integration within the import supply chain When you listed was there any thought that it could expose you to being acquired by one of the larger operators

Karl Smith Whenever you become a listed company and if youve got enough spread of shares someone might see a really good opportunity Thats definitely a possibility Bear in mind that the two foundersshareholders are also always going to have a reasonably significant stake in this business

If by chance someone did come over the horizon with a large chequebook they would only do that if they saw a significant strategic advantage Its the same old story Richard Never say never

Richard Edwards 2CheapCars has and I say this in a very positive way an image of being a scrappy street fighter a break the conventions approach to the vehicle market Can that continue as a listed company with a new structure

Karl Smith I think thats why Eugene Williams and David Sena are staying on and are going to be contributing We are going to put them into the helicopter more now rather than be down in the depths of the business because theyve got some over the horizon thinking that we want to capitalise upon

David Page I suppose Id frame it in a slightly different way Ive been involved in challenger brand businesses before And I think that sort of entrepreneurial challenge sort of mentality exists within the company And I think its about how we channel that through the culture to ensure that we keep that

from page 7

9MARCH 2021 New Zealand

New Zealands existing listed dealer group Colonial Motor Company has posted trading

profit after tax of $127 million for the six months to December 31 up 58 on the same period last year

Total revenue of $43778m was up 46 compared with the same period last year with most of the growth occurring in the last month the company says

The company operates major dealerships throughout the country including Ford and Mazda plus truck and tractor dealerships

ldquoFavourable trading conditionsrdquo flowed through to a strong trading profit compared to the low 2019 result and also up 18 on 2018 board chairman Jim Gibbons said in a letter to shareholders

ldquoThe new vehicle market for the full calendar year was down 22 on the previous year but that disguises a stronger second half Most of the decline in the second half was due to the absence of rental cars The business and private market available to dealerships in the six months was very similar to the previous year

ldquoThe new market is now dominated by supply constraints Early COVID predictions over-estimated the market decline resulting in reduced ordering of product by distributors The subsequent faster and stronger recovery has stayed ahead of supply due to capacity constraints and supply chain disruption

ldquoThe issues are widespread not restricted to the retail motor industry or our franchise suppliers Consumers have adapted to this environment and are committing to forward orders or selecting from what is physically available Near-new used vehicles

are also affected with significant shortagesrdquo Gibbons says

ldquoThe New Zealand heavy truck market for the full calendar year was down 26 on the previous year Southpac Trucks has successfully launched the new Euro6 range of DAF trucks into this declining market where the Euro6 emission standard is not mandatoryrdquo he says

The company also notes its major development in Christchurch the Team Hutchinson Ford greenway project will be completed this financial year

Newly opened in January Capital City Mazdarsquos showroom dominates the corner of Pretoria and High Streets in Lower Hutt Construction continues on the Mazda service workshop located directly behind the showroom

Capital City Fordrsquos showroom on the opposite end of the High Street property in Lower Hutt is complete Internally Fordrsquos latest BrandRetail vision has been brought to life complete with an impressive array of showroom lighting

At Botany the new Southern Autos facility for Suzuki and Isuzu will open in March along with a five bay workshop

Gibbons also comments on the Governmentrsquos recently announced clean car import standard which requires all new vehicle importers to meet stringent CO2 emission averages by 2025

ldquoIn 2020 over 95 of the new vehicles registered in New Zealand did not meet the required average of 105gm of CO2km

ldquoThe ability of the importing franchisors to meet the target in the required timeframe cannot be taken for granted where the international supply of very low emission vehicles including full EVs and PHEVs is both limited and disrupted

ldquoThe new technologies necessary to meet the standard will cost significantly more than current price rangesrdquo Gibbons says

The company expects that supply constraints and market volatility ldquowill continue to define the marketrdquo going forward ldquoThe need to constantly change and adapt will continuerdquo Gibbons says

COLONIAL MOTOR COMPANY HALF YEAR PROFIT UP 58

JIM GIBBONS

10 MARCH 2021New Zealand

MARTIN HARWOOD EXITS CAR BUSINESS AFTER MORE THAN 50 YEARS

Auckland-based EV dealer Martin Harwood has closed Harwood Cars after more than 50 years in

the industry citing COVID-19rsquos impact and other factors

But Harwood isnrsquot ditching EVs altogether intending to operate an EV consultancy to provide the benefits of his experience and knowledge to others The turning point came for Martin and wife Lorna when they failed to sell a single EV in January this year ndash although they did sell one in the first week of February

ldquoIn over 50 years involvement in the car business Irsquove never had a month like itrdquo he says of the January result

Harwood didnrsquot renew the lease on

Harwood Carsrsquo yard this year saying COVID-19 is what really did the damage

ldquoWe just couldnrsquot recoverrdquo he says pointing to pandemic restrictions here and overseasWhile Harwood reckons ldquothe tide is outrdquo on EVs at present he can see a new wave of interest coming

Hersquos critical of the previous coalition government announcing in mid-2019 its intention to introduce a ldquofeebaterdquo scheme under a proposed Clean Car plan announced by then associate transport minister Julie Anne Genter saying that stopped many potential customers who decided to wait for discounts and other incentives

ldquoAnd itrsquos still being talked aboutrdquo says Harwood who doesnrsquot expect much

action this year either

ldquoEveryonersquos talking about what will happen in five to 10 yearsrsquo time ndash but nothing much has been said about what will happen this yearrdquo

Harwood has been involved with EVs for about six years now and was among the pioneers of the EV industry here with friend and former business colleagueHenry Schmidt of Autolink Cars in Newmarket some of the first to bring in EVs He specialised mainly in the Nissan Leaf brought in from Japan

APPLY NOW

Finance amp InsuranceBusiness Manager amp Vehicle Sales

We are looking for

The key components of this role are to sell vehicles and also provide our customers with finance and insurance options when they purchase a vehicle Ultimately you will be required to drive sales of vehicles finance and insurance products that assist our customers with their purchase

Key to your success within this role will be previous experience in car sales or senior sales experience selling finance packages preferably within the automotive industry but if you are looking for a change in pace and have a background in banking finance or insurance with a proven track record then now is the time to change gears

Why choose GVI bull We have been helping Kiwis into cars for over 30 yearsbull 100 Kiwi owned and operatedbull 30000+ cars sold with huge repeat and referral businessbull Finance facilities with all the major lenders including UDC MARAC Finance Now and AFDbull Access to over 700 stock vehicles with weekly fresh stock deliveriesbull In-house marketing team providing quality enquirybull Flexible startfinish time with rostered long weekendsbull State of the art lead management and customer retention softwarebull Small but experienced sales team meaning no fighting for customersbull Uncapped earning potential with finance and warranty sale commissions

Why we will choose youbull Ensure our proven sales and delivery process is followedbull Ensure strict follow-up of enquiry and get involved with the closing of dealsbull Ensure productive and ecient daily running of the dealership with a small teambull A lending and insurance background in automotive banking or finance preferredbull Proven ability to network eectively and maintain good relationshipsbull High motivation with a competitive edgebull Proven successful sales record target and results focused

Confidence and the ability to build trust and rapport Strong organisational skills with the ability to meet dead-lines in a fast-paced environment

Does the idea of working for a well-established progressive Kiwi company where your opportunities are endless appeal to you Donrsquot hesitate apply now

Applicants for this position should have NZ residency or a valid NZ work visa

GVI Tauranga 114 Hewletts Rd Mt MaunganuiContact Kerry Deane kerrygvikwi (021) 720636

MARTIN HARWOOD

11MARCH 2021 New Zealand

CONTACT BROOKE EBBETT ON 021 555 122 | PENTANASOLUTIONSCOM

LEARN MORE gt

Running some of the largest automotiveparts warehouses in the southern hemisphere

Efficiency Visibility Accuracy

New Zealandrsquos Fastest Growing DMS

KAPITI KIA COUPLE EXPAND TO LEVIN

Kia New Zealand has taken another step in its rapid dealer network growth partnering with an existing dealer to open a 31st dealer ndash this time in Levin

Kapiti Kia husband and wife team Daniel and Kelly Gordon have established a second dealership in the Horowhenua centre

And the move has paid off in the first month of operation Levin Kia took 27 of the new car market in the region ndash a great result for a brand new business Their dealership in Paraparaumu took 35 market share on the Kapiti Coast during the same period ndash the highest market penetration of any Kia dealer in the country Great results for the couple who only took over the family-run business three years ago after buying out Kellyrsquos father

ldquoIt has involved a lot of hard work particularly on Kellyrsquos partrdquo says Daniel ldquoShersquos done a fantastic job of moving the business ahead in Paraparaumu She could clearly see a very bright future with Kia We feel the same about Levin we see tremendous growth thererdquo

Levin has been attracting large companies to the town building on its strategic position on State Highway 1 in the lower North Island Plans to construct two-and-a-half thousand houses to cope with the expected growth in the town are due to commence soon The new dealership built on a high profile site in the centre of Levin opposite a separate vehicle sales business owned by Kellyrsquos parents Gary and Chris McKelvie has been designed with growth in mind It has a large showroom that can accommodate nine brand new vehicles and the modern three-bay service centre can be further expanded when needed

The opening of Levin Kia coincides with a strong performance by the Kia brand across New Zealand

ldquoKia is an exceptional product and the interest from buyers has been across the rangerdquo says Daniel

ldquoThe response to Kia has been huge not just with the lower cost vehicles but right up to the top Sorento models Kia is the brand everyone wants to know aboutrdquo

To ensure that the needs of customers are fully catered for Kelly and Daniel have increased staff levels to 20 across both dealerships They need all the help they can get as they also try to juggle raising six children aged between 2 and 12 Todd McDonald managing director of Kia New Zealand says the expansion of the Kia brand into the Horowhenua region is a significant opportunity for all concerned

ldquoKelly and Daniel have worked very hard to make a great success of their Kapiti business and we are hugely confident in their ability to succeed with their move into Levinrdquo he says

ldquoThey and their team have developed an extremely professional customer-oriented approach which reflects the philosophy of Kiardquo

9MARCH 2021 New Zealand

New Zealands existing listed dealer group Colonial Motor Company has posted trading

profit after tax of $127 million for the six months to December 31 up 58 on the same period last year

Total revenue of $43778m was up 46 compared with the same period last year with most of the growth occurring in the last month the company says

The company operates major dealerships throughout the country including Ford and Mazda plus truck and tractor dealerships

ldquoFavourable trading conditionsrdquo flowed through to a strong trading profit compared to the low 2019 result and also up 18 on 2018 board chairman Jim Gibbons said in a letter to shareholders

ldquoThe new vehicle market for the full calendar year was down 22 on the previous year but that disguises a stronger second half Most of the decline in the second half was due to the absence of rental cars The business and private market available to dealerships in the six months was very similar to the previous year

ldquoThe new market is now dominated by supply constraints Early COVID predictions over-estimated the market decline resulting in reduced ordering of product by distributors The subsequent faster and stronger recovery has stayed ahead of supply due to capacity constraints and supply chain disruption

ldquoThe issues are widespread not restricted to the retail motor industry or our franchise suppliers Consumers have adapted to this environment and are committing to forward orders or selecting from what is physically available Near-new used vehicles

are also affected with significant shortagesrdquo Gibbons says

ldquoThe New Zealand heavy truck market for the full calendar year was down 26 on the previous year Southpac Trucks has successfully launched the new Euro6 range of DAF trucks into this declining market where the Euro6 emission standard is not mandatoryrdquo he says

The company also notes its major development in Christchurch the Team Hutchinson Ford greenway project will be completed this financial year

Newly opened in January Capital City Mazdarsquos showroom dominates the corner of Pretoria and High Streets in Lower Hutt Construction continues on the Mazda service workshop located directly behind the showroom

Capital City Fordrsquos showroom on the opposite end of the High Street property in Lower Hutt is complete Internally Fordrsquos latest BrandRetail vision has been brought to life complete with an impressive array of showroom lighting

At Botany the new Southern Autos facility for Suzuki and Isuzu will open in March along with a five bay workshop

Gibbons also comments on the Governmentrsquos recently announced clean car import standard which requires all new vehicle importers to meet stringent CO2 emission averages by 2025

ldquoIn 2020 over 95 of the new vehicles registered in New Zealand did not meet the required average of 105gm of CO2km

ldquoThe ability of the importing franchisors to meet the target in the required timeframe cannot be taken for granted where the international supply of very low emission vehicles including full EVs and PHEVs is both limited and disrupted

ldquoThe new technologies necessary to meet the standard will cost significantly more than current price rangesrdquo Gibbons says

The company expects that supply constraints and market volatility ldquowill continue to define the marketrdquo going forward ldquoThe need to constantly change and adapt will continuerdquo Gibbons says

COLONIAL MOTOR COMPANY HALF YEAR PROFIT UP 58

JIM GIBBONS

10 MARCH 2021New Zealand

MARTIN HARWOOD EXITS CAR BUSINESS AFTER MORE THAN 50 YEARS

Auckland-based EV dealer Martin Harwood has closed Harwood Cars after more than 50 years in

the industry citing COVID-19rsquos impact and other factors

But Harwood isnrsquot ditching EVs altogether intending to operate an EV consultancy to provide the benefits of his experience and knowledge to others The turning point came for Martin and wife Lorna when they failed to sell a single EV in January this year ndash although they did sell one in the first week of February

ldquoIn over 50 years involvement in the car business Irsquove never had a month like itrdquo he says of the January result

Harwood didnrsquot renew the lease on

Harwood Carsrsquo yard this year saying COVID-19 is what really did the damage

ldquoWe just couldnrsquot recoverrdquo he says pointing to pandemic restrictions here and overseasWhile Harwood reckons ldquothe tide is outrdquo on EVs at present he can see a new wave of interest coming

Hersquos critical of the previous coalition government announcing in mid-2019 its intention to introduce a ldquofeebaterdquo scheme under a proposed Clean Car plan announced by then associate transport minister Julie Anne Genter saying that stopped many potential customers who decided to wait for discounts and other incentives

ldquoAnd itrsquos still being talked aboutrdquo says Harwood who doesnrsquot expect much

action this year either

ldquoEveryonersquos talking about what will happen in five to 10 yearsrsquo time ndash but nothing much has been said about what will happen this yearrdquo

Harwood has been involved with EVs for about six years now and was among the pioneers of the EV industry here with friend and former business colleagueHenry Schmidt of Autolink Cars in Newmarket some of the first to bring in EVs He specialised mainly in the Nissan Leaf brought in from Japan

APPLY NOW

Finance amp InsuranceBusiness Manager amp Vehicle Sales

We are looking for

The key components of this role are to sell vehicles and also provide our customers with finance and insurance options when they purchase a vehicle Ultimately you will be required to drive sales of vehicles finance and insurance products that assist our customers with their purchase

Key to your success within this role will be previous experience in car sales or senior sales experience selling finance packages preferably within the automotive industry but if you are looking for a change in pace and have a background in banking finance or insurance with a proven track record then now is the time to change gears

Why choose GVI bull We have been helping Kiwis into cars for over 30 yearsbull 100 Kiwi owned and operatedbull 30000+ cars sold with huge repeat and referral businessbull Finance facilities with all the major lenders including UDC MARAC Finance Now and AFDbull Access to over 700 stock vehicles with weekly fresh stock deliveriesbull In-house marketing team providing quality enquirybull Flexible startfinish time with rostered long weekendsbull State of the art lead management and customer retention softwarebull Small but experienced sales team meaning no fighting for customersbull Uncapped earning potential with finance and warranty sale commissions

Why we will choose youbull Ensure our proven sales and delivery process is followedbull Ensure strict follow-up of enquiry and get involved with the closing of dealsbull Ensure productive and ecient daily running of the dealership with a small teambull A lending and insurance background in automotive banking or finance preferredbull Proven ability to network eectively and maintain good relationshipsbull High motivation with a competitive edgebull Proven successful sales record target and results focused

Confidence and the ability to build trust and rapport Strong organisational skills with the ability to meet dead-lines in a fast-paced environment

Does the idea of working for a well-established progressive Kiwi company where your opportunities are endless appeal to you Donrsquot hesitate apply now

Applicants for this position should have NZ residency or a valid NZ work visa

GVI Tauranga 114 Hewletts Rd Mt MaunganuiContact Kerry Deane kerrygvikwi (021) 720636

MARTIN HARWOOD

11MARCH 2021 New Zealand

CONTACT BROOKE EBBETT ON 021 555 122 | PENTANASOLUTIONSCOM

LEARN MORE gt

Running some of the largest automotiveparts warehouses in the southern hemisphere

Efficiency Visibility Accuracy

New Zealandrsquos Fastest Growing DMS

KAPITI KIA COUPLE EXPAND TO LEVIN

Kia New Zealand has taken another step in its rapid dealer network growth partnering with an existing dealer to open a 31st dealer ndash this time in Levin

Kapiti Kia husband and wife team Daniel and Kelly Gordon have established a second dealership in the Horowhenua centre

And the move has paid off in the first month of operation Levin Kia took 27 of the new car market in the region ndash a great result for a brand new business Their dealership in Paraparaumu took 35 market share on the Kapiti Coast during the same period ndash the highest market penetration of any Kia dealer in the country Great results for the couple who only took over the family-run business three years ago after buying out Kellyrsquos father

ldquoIt has involved a lot of hard work particularly on Kellyrsquos partrdquo says Daniel ldquoShersquos done a fantastic job of moving the business ahead in Paraparaumu She could clearly see a very bright future with Kia We feel the same about Levin we see tremendous growth thererdquo

Levin has been attracting large companies to the town building on its strategic position on State Highway 1 in the lower North Island Plans to construct two-and-a-half thousand houses to cope with the expected growth in the town are due to commence soon The new dealership built on a high profile site in the centre of Levin opposite a separate vehicle sales business owned by Kellyrsquos parents Gary and Chris McKelvie has been designed with growth in mind It has a large showroom that can accommodate nine brand new vehicles and the modern three-bay service centre can be further expanded when needed

The opening of Levin Kia coincides with a strong performance by the Kia brand across New Zealand

ldquoKia is an exceptional product and the interest from buyers has been across the rangerdquo says Daniel

ldquoThe response to Kia has been huge not just with the lower cost vehicles but right up to the top Sorento models Kia is the brand everyone wants to know aboutrdquo

To ensure that the needs of customers are fully catered for Kelly and Daniel have increased staff levels to 20 across both dealerships They need all the help they can get as they also try to juggle raising six children aged between 2 and 12 Todd McDonald managing director of Kia New Zealand says the expansion of the Kia brand into the Horowhenua region is a significant opportunity for all concerned

ldquoKelly and Daniel have worked very hard to make a great success of their Kapiti business and we are hugely confident in their ability to succeed with their move into Levinrdquo he says

ldquoThey and their team have developed an extremely professional customer-oriented approach which reflects the philosophy of Kiardquo

10 MARCH 2021New Zealand

MARTIN HARWOOD EXITS CAR BUSINESS AFTER MORE THAN 50 YEARS

Auckland-based EV dealer Martin Harwood has closed Harwood Cars after more than 50 years in

the industry citing COVID-19rsquos impact and other factors

But Harwood isnrsquot ditching EVs altogether intending to operate an EV consultancy to provide the benefits of his experience and knowledge to others The turning point came for Martin and wife Lorna when they failed to sell a single EV in January this year ndash although they did sell one in the first week of February

ldquoIn over 50 years involvement in the car business Irsquove never had a month like itrdquo he says of the January result

Harwood didnrsquot renew the lease on

Harwood Carsrsquo yard this year saying COVID-19 is what really did the damage

ldquoWe just couldnrsquot recoverrdquo he says pointing to pandemic restrictions here and overseasWhile Harwood reckons ldquothe tide is outrdquo on EVs at present he can see a new wave of interest coming

Hersquos critical of the previous coalition government announcing in mid-2019 its intention to introduce a ldquofeebaterdquo scheme under a proposed Clean Car plan announced by then associate transport minister Julie Anne Genter saying that stopped many potential customers who decided to wait for discounts and other incentives

ldquoAnd itrsquos still being talked aboutrdquo says Harwood who doesnrsquot expect much

action this year either

ldquoEveryonersquos talking about what will happen in five to 10 yearsrsquo time ndash but nothing much has been said about what will happen this yearrdquo

Harwood has been involved with EVs for about six years now and was among the pioneers of the EV industry here with friend and former business colleagueHenry Schmidt of Autolink Cars in Newmarket some of the first to bring in EVs He specialised mainly in the Nissan Leaf brought in from Japan

APPLY NOW

Finance amp InsuranceBusiness Manager amp Vehicle Sales

We are looking for

The key components of this role are to sell vehicles and also provide our customers with finance and insurance options when they purchase a vehicle Ultimately you will be required to drive sales of vehicles finance and insurance products that assist our customers with their purchase

Key to your success within this role will be previous experience in car sales or senior sales experience selling finance packages preferably within the automotive industry but if you are looking for a change in pace and have a background in banking finance or insurance with a proven track record then now is the time to change gears

Why choose GVI bull We have been helping Kiwis into cars for over 30 yearsbull 100 Kiwi owned and operatedbull 30000+ cars sold with huge repeat and referral businessbull Finance facilities with all the major lenders including UDC MARAC Finance Now and AFDbull Access to over 700 stock vehicles with weekly fresh stock deliveriesbull In-house marketing team providing quality enquirybull Flexible startfinish time with rostered long weekendsbull State of the art lead management and customer retention softwarebull Small but experienced sales team meaning no fighting for customersbull Uncapped earning potential with finance and warranty sale commissions

Why we will choose youbull Ensure our proven sales and delivery process is followedbull Ensure strict follow-up of enquiry and get involved with the closing of dealsbull Ensure productive and ecient daily running of the dealership with a small teambull A lending and insurance background in automotive banking or finance preferredbull Proven ability to network eectively and maintain good relationshipsbull High motivation with a competitive edgebull Proven successful sales record target and results focused

Confidence and the ability to build trust and rapport Strong organisational skills with the ability to meet dead-lines in a fast-paced environment

Does the idea of working for a well-established progressive Kiwi company where your opportunities are endless appeal to you Donrsquot hesitate apply now

Applicants for this position should have NZ residency or a valid NZ work visa

GVI Tauranga 114 Hewletts Rd Mt MaunganuiContact Kerry Deane kerrygvikwi (021) 720636

MARTIN HARWOOD

11MARCH 2021 New Zealand

CONTACT BROOKE EBBETT ON 021 555 122 | PENTANASOLUTIONSCOM

LEARN MORE gt

Running some of the largest automotiveparts warehouses in the southern hemisphere

Efficiency Visibility Accuracy

New Zealandrsquos Fastest Growing DMS

KAPITI KIA COUPLE EXPAND TO LEVIN

Kia New Zealand has taken another step in its rapid dealer network growth partnering with an existing dealer to open a 31st dealer ndash this time in Levin

Kapiti Kia husband and wife team Daniel and Kelly Gordon have established a second dealership in the Horowhenua centre

And the move has paid off in the first month of operation Levin Kia took 27 of the new car market in the region ndash a great result for a brand new business Their dealership in Paraparaumu took 35 market share on the Kapiti Coast during the same period ndash the highest market penetration of any Kia dealer in the country Great results for the couple who only took over the family-run business three years ago after buying out Kellyrsquos father

ldquoIt has involved a lot of hard work particularly on Kellyrsquos partrdquo says Daniel ldquoShersquos done a fantastic job of moving the business ahead in Paraparaumu She could clearly see a very bright future with Kia We feel the same about Levin we see tremendous growth thererdquo

Levin has been attracting large companies to the town building on its strategic position on State Highway 1 in the lower North Island Plans to construct two-and-a-half thousand houses to cope with the expected growth in the town are due to commence soon The new dealership built on a high profile site in the centre of Levin opposite a separate vehicle sales business owned by Kellyrsquos parents Gary and Chris McKelvie has been designed with growth in mind It has a large showroom that can accommodate nine brand new vehicles and the modern three-bay service centre can be further expanded when needed

The opening of Levin Kia coincides with a strong performance by the Kia brand across New Zealand

ldquoKia is an exceptional product and the interest from buyers has been across the rangerdquo says Daniel

ldquoThe response to Kia has been huge not just with the lower cost vehicles but right up to the top Sorento models Kia is the brand everyone wants to know aboutrdquo

To ensure that the needs of customers are fully catered for Kelly and Daniel have increased staff levels to 20 across both dealerships They need all the help they can get as they also try to juggle raising six children aged between 2 and 12 Todd McDonald managing director of Kia New Zealand says the expansion of the Kia brand into the Horowhenua region is a significant opportunity for all concerned

ldquoKelly and Daniel have worked very hard to make a great success of their Kapiti business and we are hugely confident in their ability to succeed with their move into Levinrdquo he says

ldquoThey and their team have developed an extremely professional customer-oriented approach which reflects the philosophy of Kiardquo

11MARCH 2021 New Zealand

CONTACT BROOKE EBBETT ON 021 555 122 | PENTANASOLUTIONSCOM

LEARN MORE gt

Running some of the largest automotiveparts warehouses in the southern hemisphere

Efficiency Visibility Accuracy

New Zealandrsquos Fastest Growing DMS

KAPITI KIA COUPLE EXPAND TO LEVIN

Kia New Zealand has taken another step in its rapid dealer network growth partnering with an existing dealer to open a 31st dealer ndash this time in Levin

Kapiti Kia husband and wife team Daniel and Kelly Gordon have established a second dealership in the Horowhenua centre

And the move has paid off in the first month of operation Levin Kia took 27 of the new car market in the region ndash a great result for a brand new business Their dealership in Paraparaumu took 35 market share on the Kapiti Coast during the same period ndash the highest market penetration of any Kia dealer in the country Great results for the couple who only took over the family-run business three years ago after buying out Kellyrsquos father

ldquoIt has involved a lot of hard work particularly on Kellyrsquos partrdquo says Daniel ldquoShersquos done a fantastic job of moving the business ahead in Paraparaumu She could clearly see a very bright future with Kia We feel the same about Levin we see tremendous growth thererdquo

Levin has been attracting large companies to the town building on its strategic position on State Highway 1 in the lower North Island Plans to construct two-and-a-half thousand houses to cope with the expected growth in the town are due to commence soon The new dealership built on a high profile site in the centre of Levin opposite a separate vehicle sales business owned by Kellyrsquos parents Gary and Chris McKelvie has been designed with growth in mind It has a large showroom that can accommodate nine brand new vehicles and the modern three-bay service centre can be further expanded when needed

The opening of Levin Kia coincides with a strong performance by the Kia brand across New Zealand

ldquoKia is an exceptional product and the interest from buyers has been across the rangerdquo says Daniel

ldquoThe response to Kia has been huge not just with the lower cost vehicles but right up to the top Sorento models Kia is the brand everyone wants to know aboutrdquo

To ensure that the needs of customers are fully catered for Kelly and Daniel have increased staff levels to 20 across both dealerships They need all the help they can get as they also try to juggle raising six children aged between 2 and 12 Todd McDonald managing director of Kia New Zealand says the expansion of the Kia brand into the Horowhenua region is a significant opportunity for all concerned

ldquoKelly and Daniel have worked very hard to make a great success of their Kapiti business and we are hugely confident in their ability to succeed with their move into Levinrdquo he says

ldquoThey and their team have developed an extremely professional customer-oriented approach which reflects the philosophy of Kiardquo

12 MARCH 2021New Zealand

A report is considering at the future of autonomous vehicles (AVs) in New Zealand and says now is the time to start looking at laws and regulations before itrsquos too

late

The white paper titled The Driverless Revolution What Next written by Mitchell Gingrich and Steven Moe looks at what is changing in the area of autonomous vehicles and asks what can be done to prepare for that

It concludes with eight key recommendations in the area of regulatory compliance and suggests New Zealand has the chance to be ldquoworld-leadingrdquo in its adoption of AVs and show other countries the way forward

ldquoWith change there is always opportunity In our view this opportunity is to offer New Zealand a way to smooth out the legal bumps in the road for AVs and deliver a regulatory framework which not only is coherent but also technologically savvy ndash combining law and AV technology

ldquoWhether delivering people or products AVs must be safe for all users of public spacesrdquo it says

Recommendations include

bull A full-fledged permitting process allowing companies to test AVs on the public roads in a limited manner such as a geo-fenced area

bull Upgrading New Zealand motor vehicle standards so that AVs are in compliance For example regulations permitting a vehicle without a steering wheel or pedals for a human driver These upgraded standards should also reflect the adoption of the Society of Automotive Engineers (SAE) taxonomy for levels of vehicle autonomy

bull Establishing an AV agency under the authority of the Ministry of TransportNZTA to provide oversight concerning regulatory framework and approvals for AV certification and testing

bull Updating street signs pedestrian walkways cycle lanes lane markings and footpaths

bull Establishing ldquoautonomy zonesrdquo where geo-fenced AVs

may operate for testing initially and then full-fledged operations

bull Address privacy and carefully navigate the concerns of AV users and all users of the public roads as tremendous amounts of data will be stored by the AV owneroperators

bull Clarify legal liability and update New Zealand law to address the liability for an AV accident

bull For fully autonomous Level 5 AVs the need to consider whether these may be owned or operated by individual owners or only by fleet operators public road testing standards software standards vehicle and computer hardware maintenance standards testing simulation standards reporting requirements for AV owneroperators IT security standards privacy standards post-incident

to page 13

Full border inspections

Authorised MPI inspections

Authorised NZTA inspections

Odometer verification

Pre-export appraisal

Vehicle history reports

JEVIC NZ09 966 1779 wwwjevicconz

Specialists in pre‑shipment inspections

in Japan amp UK

REPORT CALLS FOR LAW REFORM ON AUTONOMOUS VEHICLES

MITCHELL GINGRICH

PEOPLETALK

13MARCH 2021 New Zealand

data sharing requirements initial registration and on-going certification process for AV safety drivers initial registration and on-going certification process for those remotely observing and operating the AVs

Gingrich who now lives in Christchurch previously worked for Uberrsquos Advanced Technologies Group (ATG) as a test pilot in the AV programme from 2017 to 2018

The work required him to collect data and contribute to the deployment of software updates as part of the autonomous fleet of more than 200 Volvo XC90 vehicles

By December 22 2017 Uber announced it had completed 32 million kilometres in automated mode testing

However on March 18 2018 the trial came to an end when Elaine Herzberg became the first pedestrian to be killed by a self-driving car that was taking part in the Arizona-based programme

Herzberg was struck by an auto-piloted car with a single operator while walking outside of a crosswalk

The incident made headlines around the world and the Tempe Police Department produced a 300-page report on the accident while the National Transportation Safety Board (NTSB) produced hundreds of pages supporting the findings

The NTSB said that the immediate cause of the collision was the failure of the Uber ATG operator to closely monitor the road and the operation of the automated driving system because the operator was visually distracted throughout the trip by a personal cell phone

Furthermore it says Uber ATG had inadequate safety risk assessment procedures ineffective oversight of

the vehicle operators and a lack of adequate mechanisms for addressing operatorsrsquo automation complacency

ldquoSafety starts at the toprdquo said NTSB chairman Robert Sumwalt ldquoThe collision was the last link of a long chain of actions and decisions made by an organisation that unfortunately did not make safety the top priorityrdquo

Gingrich says the accident was

from page 12

Kick start your dealership by taking advantage of our Rev It Up Specials

Offer valid on new websites signed off between 1 July and 31 August 2020 Price does not include GST nor costs associated with website maintenance amp stock locators

To find out more call (09) 887 1822 or email infoadtorqueedgecom | adtorqueedgeconz

TIME TO HIT REFRESH ON YOUR DIGITAL

MARKETING

NEW WEBSITES FROM $950

Includes ALICE Advanced FREE till 31 December 2020

to page 14

PEOPLETALK

14 MARCH 2021New Zealand

PEOPLETALK

ldquopreventablerdquo and that avoiding such events requires ldquoforesight regulatory input and guidance thoughtful planning and placing safety as the paramount purpose for any transportation project conducted on public streetsrdquo

He says the accident also serves as a reminder for how important it is to get the laws and regulatory compliance in check before we have fleets of AVs on our local roads

He concedes that the Uber ATG programme was ldquobasically a science experiment on public roadsrdquo and this is the challenge that needs to be faced as the technology begins to roll out around the world

ldquoThe reports from the NTSB and the Tempe Police Department reflect the considered opinions of experts in evaluating transportation accidents and certain aspects of their reports remain under consideration such as whether the AV driver could or should be charged criminally for reportedly paying more attention to her smartphone than the roadrdquo Gingrich says in the report

In 2018 Arizona had no regulatory scheme permitting AVs to operate on its public roads and the Arizona Department of Transportation announced that the absence of regulations incentivised AV testing

ldquoUber ATGrsquos fatal accident however has not deterred other states from aggressively pursuing the AV dream

ldquoA thorough and well-reasoned regulatory framework permitting AVs to operate on the public roads in New Zealand creates a stronger likelihood of preventing AVs aka the lsquoRobot carsrsquo

from striking pedestrians or inflicting harm on the public roadsrdquo he says

Gingrich who also has a law background has now launched a consulting business with the aim of assisting the Government and industry in developing policies relating to the testing and use of autonomous vehicles in public areas

Co-author Steven Moe is also based in Christchurch and is a partner at Parry Field Lawyers and host of the theseedsnz podcast He works across the country to help establish and provide advice to companies investors social enterprises and not for profits

NZ WORKING TOWARDS AV FRAMEWORK The Ministry of Transport says it is working closely with NZ Transport Agency to ldquounderstand the potential new road safety risks AVs could introduce to the transport system (such as hardware and software failures malicious hacking and increased risk-taking)rdquo

ldquoThe ministry also seeks to understand how new technologies contribute to transport outcomes This includes considering how new technologies can influence travel choices impact congestion reduce the road toll improve access reduce emissions and improve the liveability of our citiesrdquo

ldquoThe ministry needs to understand what an effective regulatory framework looks like including the level of risk tolerance we are willing to accept the balance of flexibility in the system versus certainty for users and the expertise resources and systems needed to administer it

ldquoNew Zealandrsquos current regulatory framework for vehicles is based on prescriptive vehicle standards and detailed driver licensing requirements Vehicle standards have been developed gradually over several decades and are largely based on the assumption that vehicles will look and operate in similar ways as they have done in the past

ldquoDriver licensing also becomes less important (and manufacturer licensing more important) as vehicles become highly and fully automated Both of these aspects are challenged by new vehicle technologies which place a greater reliance on software (and software updates) and place fewer duties and demands on the driverrdquo the transport ministry says

ldquoHow AVs are deployed into the New Zealand market will also influence the level of regulatory change required If AVs are owned by companies who deploy them as fleets of self-driving vehicles then regulation could potentially be simpler as it will follow many of the existing legislative requirements business owners already have

ldquoIf AVs are deployed and sold to individuals for private use there may be the need to revise existing legislation especially rules around liability Nevertheless there will still be a need to review and assess existing legislation with the new requirements AVs present and to incorporate new legislation to address risks not covered in existing legislationrdquo it says

from page 13

15MARCH 2021 New Zealand

Writing a column can be feast or famine Some months there seems to be nothing

to write about other months you canrsquot decide on a topic

Obviously Covid-19 and lockdowns are front of mind for the industry (again) But arenrsquot we all a bit tired of talking about social distancing and PPE Then therersquos the Climate Change Commission and its draft advice to Government which for transport focuses unrealistically on accelerating the uptake of EVs (We think the focus should be accelerating the reduction of carbon but you can read our submission at the end of March)

Instead letrsquos talk about the reason our businesses exist ndash customers More and more the general public knows less and less about vehicles We see it in the low maintenance rates leading to high WOF failure rates (50 percent in Waikato in February ndash a terrible milestone) But we also see it in the thirst for information from consumers considering a car purchase Plenty of people turn to Dr Google for advice but many also like to speak to a human and get the ldquogood oilrdquo (so to speak) from the horsersquos mouth (ok mixing metaphors there)

The best choice for a consumer is to go with a registered motor vehicle

trader not just because they are protected by the Consumer Guarantees Act but because a RMVT should be the best information source about the product The problem for traders is that regulations require more information to be supplied to consumers ndash from the CIN card and VFEL through to all the relevant disclosures under the Responsible Lending Code

At a recent presentation by NZTA on safety ratings and how they are evaluated there was talk of perhaps yet more window furniture in the form of a ldquosafety ratings labelrdquo Now thatrsquos not official yet but they are thinking about it In addition with the prospect of the Clean Car Standard we are likely to also see requirements for CO2 data and penalties or incentives listed The presentation included news that the RightCar website will be getting a revamp The demonstration page looked great ndash it had everything you might want to tell a customer about the car ndash fuel efficiency safety rating and even emissions profile

For many years MTA has called for a review of the CIN card and other information including consolidating information onto one sheet Well my question is why donrsquot we just print out that RightCar page If it has everything on it then it becomes the

one-stop source for that information and it means that the compliance requirements set by Government are more easily met We are heading towards some major changes in the industry over the next two years or so Why not throw in a fairly minor change and tidy up all that wallpaper we have to slap on our cars

DO WE NEED ANOTHER NOTICEBY GREIG EPPS

GREIG EPPSADVOCACY amp STRATEGY

MANAGER AT MTA

15MARCH 2021 New Zealand

Writing a column can be feast or famine Some months there seems to be nothing

to write about other months you canrsquot decide on a topic

Obviously Covid-19 and lockdowns are front of mind for the industry (again) But arenrsquot we all a bit tired of talking about social distancing and PPE Then therersquos the Climate Change Commission and its draft advice to Government which for transport focuses unrealistically on accelerating the uptake of EVs (We think the focus should be accelerating the reduction of carbon but you can read our submission at the end of March)

Instead letrsquos talk about the reason our businesses exist ndash customers More and more the general public knows less and less about vehicles We see it in the low maintenance rates leading to high WOF failure rates (50 percent in Waikato in February ndash a terrible milestone) But we also see it in the thirst for information from consumers considering a car purchase Plenty of people turn to Dr Google for advice but many also like to speak to a human and get the ldquogood oilrdquo (so to speak) from the horsersquos mouth (ok mixing metaphors there)

The best choice for a consumer is to go with a registered motor vehicle

trader not just because they are protected by the Consumer Guarantees Act but because a RMVT should be the best information source about the product The problem for traders is that regulations require more information to be supplied to consumers ndash from the CIN card and VFEL through to all the relevant disclosures under the Responsible Lending Code

At a recent presentation by NZTA on safety ratings and how they are evaluated there was talk of perhaps yet more window furniture in the form of a ldquosafety ratings labelrdquo Now thatrsquos not official yet but they are thinking about it In addition with the prospect of the Clean Car Standard we are likely to also see requirements for CO2 data and penalties or incentives listed The presentation included news that the RightCar website will be getting a revamp The demonstration page looked great ndash it had everything you might want to tell a customer about the car ndash fuel efficiency safety rating and even emissions profile

For many years MTA has called for a review of the CIN card and other information including consolidating information onto one sheet Well my question is why donrsquot we just print out that RightCar page If it has everything on it then it becomes the

one-stop source for that information and it means that the compliance requirements set by Government are more easily met We are heading towards some major changes in the industry over the next two years or so Why not throw in a fairly minor change and tidy up all that wallpaper we have to slap on our cars

DO WE NEED ANOTHER NOTICEBY GREIG EPPS

GREIG EPPSADVOCACY amp STRATEGY

MANAGER AT MTA

16 MARCH 2021New Zealand

BY DAVID CRAWFORD | CEO MOTOR INDUSTRY ASSOCIATION

While most commentators are saying that the Climate Change Commissionrsquos draft

report is a wakeup call for industry and consumers it is in the MIArsquos view also a reality check for Government It is the Government who set the net zero emissions by 2050 target and the Commissionrsquos report sets out a range of challenging policy implications the Government needs to respond to if the target has any chance of being realised It makes for sobering readingThere are some recommendations in the draft report that the MIA will need to constructively respond to

The MIA has consistently argued our climate change policy must address all gases and all sectors It is our view the agricultural sector still seems to be more lightly treated than transport The first impression one gains from the draft report is that transport needs to do the heavy lifting around emission reductions whereas for agriculture we need to wait for technological breakthroughs

Fifty percent of new vehicle sales to be EVs by 2027 is optimistic and generally throughout the report their predictions of low emission vehicles run ahead of what we believe is possible We also accept that at some point the Government might need to start placing a ban on the importation of pure petrol and diesel vehicles (an ICE ban) but that depends on some other alternatives I raise below If they do then it is our view no sooner than 2035 as it will take that long

to be able to import alternative technologies in the numbers and types of vehicles we require But as I note below there are other reasons why we might not need to chase the holy grail of an ICE ban

Perhaps the Commission also missed an opportunity one we will address in our submission and that is technological breakthroughs in the transport sector

Carbon neutral fuel sources means we can keep using ICE vehicles along with all the existing infrastructure to support the retail of that fuel While the draft report touches on biofuels it misses an opportunity to develop a carbon neutral fuel source that quite a few vehicle manufacturers are now looking into Equally optimistic is the advancement around the development of second generation biofuels which are sourced from various bio-stock (wood etc) to make a crude bio-oil from which petrol and diesel can be produced These second generation biofuels are known as lsquodrop-inrsquo fuels which are 100 compatible with existing ICE engines and fuel management systems

The link below has interesting information on what e-Fuel is including how it is made and its impact on the environment It would be well suited to NZ because of our relatively high fleet age and our abundance of renewable electricity (particularly in the lower South Island) For example once the current extension to the Rio Tinto contract at the Tiwai Point smelter expires then

that electricity could be utilised to make e-Fuel to lower emissions of the entire NZ fleet of light and heavy vehicles Better still it can also be used for aviation fuel and for marine diesel based shipping applications

For information on the e-fuel initiative see - httpswwwefuel-allianceeuenE-fuel is technically feasible and has considerable attraction to us as we think about the Climate Change Commissionrsquos draft report on what NZ needs to do if we are to reach out 2050 net zero emissions target

The MIA VIA MTA and AA have all rightfully criticised the Government for focusing their greenhouse gas emission reduction policies on vehicles as they enter the fleet and miss those in the fleet This initiative could address in-fleet emission reductions and is therefore in my view the most powerful greenhouse gas reduction idea we have seen for transport

We believe it is a technology we must collectively draw to the attention of the Climate Change Commission for them to advocate RampD in a NZ context and for us to make officials and ministers aware that there are a range of technological solutions to reducing emissions from land sea and air transport

This does not replace the need for hydrogen and EVs but rather is yet another technology that we can utilise for transitioning away from traditional extractive forms of fuel

CRAWFORDrsquoS CASE

CLIMATE CHANGE REPORT A REALITY CHECK FOR GOVERNMENT

17MARCH 2021 New Zealand

LEAD TEST DRIVE AND SALES BY SOURCE FEBRUARY 2021 (VS JANUARY 2020)BY MATT DARBY

Now that February 2021 is in the books itrsquos time to take a look at how the market fared Although February is a shorter month than January we really

did not see a great deal of activity across Leads Test Drives and other KPIs in the first few days of January ndash resulting in similar activity levels across the two months

In February 2021 we saw leads from lsquoWeb ndash Classifiedrsquo sources decrease by a significant margin ndash dropping 134 from January to February Given December saw a 105 decrease whilst January saw a big jump of 21 it puts the volume of classified web leads at levels close to those in November 2020

Leads attributed to the lsquoWeb ndash Dealerrsquo source decreased by a smaller margin with a 41 drop from January to February whilst leads from OEMs surged up 156 month-to-month on the back of some pre-launch activity by several brands AutoPlay works with

SOURCE LEADSWeb - Classified 134 (vs 21 increase in Jan)

Web - Dealer 41 (vs 196 increase in Jan)

Brand 156 (vs 124 increase in Jan)

February 2021 vs January 2021

After a successful January saw strong Test Drive results February saw slight decreases across the board Mirroring the decrease in Lead volume we saw Test Drives attributed to lsquoWeb ndash Classifiedrsquo sources decrease by 14 from January lsquoDealership Visitrsquo Test Drives decreased by 62 and Test Drives from lsquoWeb ndash Dealerrsquo (dealership websites) also decreased by 106

SOURCE TEST DRIVESWeb-classified 140 (vs 294 increase in Jan)

Dealership Visit 62 (vs 346 increase in Jan)

Web-dealer 106 (vs 258 increase in Jan)

February 2021 vs January 2021

Sales appear less elastic than Leads and Test Drives with smaller decreases and increases on a month-to-month basis With higher volumes of Leads and Test Drives in January it could have been expected that we would see a similar surge in Sales but this has not eventuated in any statistically significant manner In February we saw very similar Sales to January with Sales attributed to lsquoWeb ndash Classifiedrsquo decreasing by 15 Sales attributed lsquoWeb ndash Dealerrsquo sources decreased by 49 from January to February and Sales attributed to lsquoDealership Visitsrsquo decreasing marginally by 07

SOURCE SALESWeb-classified 15 (vs 59 decrease in Jan)

Web-dealer 49 (vs 13 increase in Jan)

Dealership Visit 07 (vs 194 increase in Jan)

February 2021 vs January 2021

Despite strong Lead volumes in January we did not see significant increases in Sales in the month of February With decreases in Lead and Test Drive volumes across the main sources in February as well as another set of lockdowns in early March it will be interesting to see how this impacts activity at Kiwi dealers Make sure to check AutoTalk again next month to see the most popular sources of Leads Test Drives and Sales in March 2021

Your dealership At a glanceThe AutoPlay Sales Pipeline features a comprehensive reporting tool including reports on performance vs targets test drive amp sales activity marketing ROI and salesperson performance

Call (09) 361 1505 - Email salesautoplayconz - Visit wwwautoplayconz