Concerns over long-term future
The chief executive of Autohub NZ says the crisis caused by the coronavirus, and the government’s subsequent shutdown of the country, is like nothing the industry has experienced before.
“I’m resigned to thinking the new normal won’t resemble what was normal prior to the Covid-19 scenario, but I am optimistic we will get through this,” Frank Willett told Autofile Online.
“One thing I’m concerned about is who will be left standing at the end of this. It’s conceivable that a number of dealers or compliance centres may not be in a position to reopen once we get through this situation.
“Other markets that Japan exports cars to are experiencing their own level of Covid-19 shock and there’s been a dramatic reduction in cars going to other markets.
“As a result, auction prices are starting to come down by as much as 30 per cent in some cases. It’s tough for someone here to take advantage of that given the situation we’re in and the exchange rate is quite bad. However, for importers who are well-funded they could look to secure some relatively cheap stock.”
At the moment, many clients are interacting with Autohub as normal. “Invoices are going out for vehicles that are arriving or are on their way. Those are being paid even though the vehicles can’t be delivered at this stage,” says Willett, pictured.
“Most people are concerned about the physical location of where their cars are going. All vehicles are going into storage compounds provided by service providers contracted to Autohub and other sites set up as overflows if needed.
“Our storage providers have stated they have got adequate space. While there’s no doubt going to be a strain on those facilities, most have made alternative arrangements and I’m confident everything will be fine. Once the lockdown is lifted, there will be a backlog of vehicles to deliver and that will take some time to work through.”
