Like the rest of New Zealand's industries, the automotive sector has been hit incredibly hard by the Covid-19 restrictions, with dealers only being able to sell vehicles for three days throughout the month of April.
Unsurprisingly, this led to an abysmal sales figure for the month, but impressively, 1,039 new vehicles were still registered in those three days, showing how our dealerships are getting on with things.
That's the message that Armstrong's, one of New Zealand’s largest privately owned Automotive Groups is trying to spread as they adjust to the 'new normal'.
Armstrong's run 30 dealerships across 13 locations throughout New Zealand, and employ over 500 people, so it's no surprise that they are feeling the effects.
Owner Rick Armstrong commented, “Under the Level 4 lockdown we worked harder than we ever have, quickly getting the business into shape and planning for progressively re-entering business through the various levels.”
Armstrong’s re-commenced business under level 3 on 28th April and vehicle servicing was immediately at 90% and vehicle sales averaging around 50% of pre-lockdown levels.
“Business is certainly being done differently, contactless with appropriate distancing, sanitising vehicles and general safety precautions, but staff are working well within the guidelines and customers have been very understanding and have appreciated our efforts.” said Armstrong.
Armstrong is the first to admit that the effect on business over a lengthy period will be profound. There will inevitably be business failures and lower activity levels for an extended period. He does believe though that while government support has been helpful, there are specific and constructive ways the government can assist the automotive sector going forward.
“There are positive ways that the government can assist business and provide long term sector benefits. There is a real opportunity to refresh the national vehicle fleet through incentivised scrapping programs to get less safe and less environmentally friendly cars off the road; the provision of better tax laws for business vehicles; and incentives for more modern vehicles that are safer and greener."
“We have been incredibly proud of the resilience shown by our staff and we are now looking to the government to provide appropriate ideas and stimulus to the economy, of which the automotive sector and transport more broadly, is an integral and enabling function.” concluded Armstrong.