Since the importation of used Japanese vehicles into the New Zealand market commenced in 1988, there has been increased pressure on franchise dealerships and subsequently a huge rationalization of the market.

For example in 1990 there were about 1000 motor vehicle franchise dealerships in New Zealand, owned by about 900 individuals. Today there are less than 500, owned by about 150 individuals. Fifteen years ago a typical dealership would carry 10,000 line items and up to 2 months supply. Today it has about 2,500 line items and a few days supply.

New Zealand has one of the most open economies in the world, free of protective tariffs and regulations. This has lead to our processes becoming far more efficient than in other markets with which we are familiar.

We have for example some of the lowest staff numbers in relation to business volume, with costs continually being minimised and margins becoming ever tighter. These trends are typical of the NZ motor industry and indicate the ongoing pressure to provide more efficient processes throughout dealerships.