Emissions targets are ‘ambitious’
The Colonial Motor Company’s chief executive officer says government intervention has directly impacted on sales of new vehicles.
Alex Gibbons highlighted the impacts of major issues of Covid-19 lockdowns, recovery stimulus from the pandemic and the launch of the clean car discount on April 1 during his presentation at the company’s annual general meeting in Wellington on November 11.
He described the outcome of 2021/22 as having been “phenomenal but the journey to achieve success has been a rollercoaster for our dealerships”.
When it comes to new-vehicle registrations, Gibbons told shareholders supply and price are the greatest barriers to electric vehicle (EV) uptake, while the limited existence and availability of practical light commercial EVs is “slowing the transition in that segment”.
As for climate change, three factors are influencing demand in the automotive industry. These are social responsibility and the desire to do things, technology and the commercial race to bring battery technology to the mass market, and political intervention using regulation to create change.
Gibbons explained that the clear-car policies are designed to enforce rapid reductions in carbon dioxide (CO2) emissions. But emissions targets set by the government for passenger vehicles and SUVs are ambitious and aggressive for a small automotive market like New Zealand.
As for CO2 targets for light commercials, there’s a gap between the government’s aspirations and product availability because “few light commercial EVs are available and those that are remain in globally short supply”.
That said, Colonial’s dealerships have “great new EV products”, such as Ford’s Mustang Mach-E – a BEV that’s now available to order – and the Mazda CX60 plug-in hybrid (PHEV), which is coming soon.
Gibbons described the BEV and PHEV as being complementary to “the range of solutions our dealerships offer customers. EV models are available, or in the future pipeline, for all brands we partner”.
With PACCAR in the heavy sector, Gibbons told shareholders that Colonial offers modern trucks with increased power, capacity and fuel economy. Advanced driver assistance technology is standard to enhance safety, while the XG represents a new model range coming to New Zealand.
DAF is now producing its next-generation vehicles, with Colonial-owned Southpac expecting to begin taking orders for a new range of CF and LF BEVs from late 2023, giving customers a “choice of solution that best meets their needs”.
The 2022/23 financial year saw Colonial “take into consideration future EV requirements” when it came to its new facilities. Gibbons added the company also focused on health, preparing its next generation of leaders and EV technical training.
“Complementing our investment in facilities is our ongoing belief that our people are our greatest asset.
“I’m incredibly proud of the team and our dealers’ ability to adapt to uncertainty and change. The product mix is evolving and we have competitive products now and coming in the future.
“The road to achieve the government’s emissions aspirations is daunting for the industry, but we are embracing change and on the journey. Investment in our people, partnerships and dealerships remains a core focus.”
