Christchurch battles aftershocks

TWO more large earthquakes that hit Christchurch last week have dealt another blow to the city’s central business district – and to vehicle sales – but not a fatal one according to local dealers.

The latest earthquakes – which struck on June 13 and registered 5.5 and 6.0 on the Richter scale – are among many smaller ones to have hit New Zealand’s second-largest city since it was devastated by a 6.3-magnitude quake in February.

In the year to date, new passenger car sales nationally are up six per cent year to date, but are down 16 per cent in Christchurch according to the Motor Trade Association.

MTA communications manager Ana Zandi said the used-vehicle industry has been most badly affected, with retail outlet closures confined to used car dealers.

Toyota chief executive Alistair Davis told GoAuto that business in the Christchurch area is down around 10 per cent, but he has noted an increase in sales nationally to construction companies working in the area and to the Earthquake Commission.

Andre Heyns, CEO of Miles Toyota in central Christchurch, said he relocated to another branch for three weeks, reopened in March and has had no further disruption as a result of last week’s shocks.

From top: Blackwells' used car team operating from temporary accomodation in Sockburn, alongside Canterbury Mazda (second from top), Blackwells' temporary service 'hangar', signage at Blackwells' damaged dealership, an access map to Christchurch-based Miles Toyota.

Mr Heyns said his company had lost 10 per cent of its staff after some relocated permanently, but has no plans to relocate Miles Toyota, which is surrounded by dealerships from several major franchises.

He believes this concentration of vehicle business will bring buyers into an otherwise badly affected area and does not expect any to relocate.

Mr Heyns said the drop in sales is also partly due to Japan-related supply issues.

“In real terms the market is down, but we’re still generating good numbers,” he said.

Team Hutchinson Ford only reopened in May after authorities reduced the ‘red zone’ cordon around the worst-hit areas in the city, but was forced to evacuate again on Monday. It reopened a day later.

The Ford dealer is only is operating from part of its site, with some of its buildings being demolished. Parts of the showroom and workshop are closed, while the parts department and used car sales offices are operating from a portable building.

Blackwells Holden has been harder hit, with the latest quakes necessitating further engineering reports, so it is working out of temporary marquees at its commercial branch in Sockburn, which it shares with Canterbury Mazda.

This has put a strain on the service department and required double shifts seven days a week, but a new workshop is due for completion next week.

Dealer principal Steve Grenfell said it will be some time before the Holden dealer returns to the city centre, but believes it will eventually return to being “a thriving, very exciting place to be”.

While Mr Grenfell told GoAuto sales are stronger – with fleets returning, having delayed roll-over last year, and private buyers “looking for more appropriate vehicles” like SUVs – not all new franchises report healthy sales.

Suzuki marketing boss Tom Peck said Christchurch region sales halved in March and April, as 60 to 70 per cent of its sales are to private buyers.

Mr Peck said Christchurch is his number one dealer, regularly outselling Auckland, and he expects private buyers to return as insurance payouts start rolling in.

Hyundai chief operating officer Tom Ruddenklau said sales are down about 10 per cent in Christchurch, but that has been compensated for by a 10 to 15 per cent increase in the service department.

The MTA reports anecdotal evidence of more front end suspension and braking repairs due to damaged roads and the abrasive qualities of fine dust covering the city, while the biggest shift in buying patterns, both new and used, is people trading conventional cars for SUVs to cope with the rough road surfaces.

“We’ve had quite a few [customers] trading in passenger vehicles and buying SUVs purely because of the state of the roads,” Toyota’s Andre Heyns told GoAuto.

“You can drive through some parts of Christchurch and not know there’s been an earthquake, but in other parts it’s devastation still.”

Christchurch Mayor Bob Parker said up to 60 per cent of buildings in the still-closed red zone, which covers 20 per cent of the CBD, may have to be demolished.

Meanwhile, the earth is still shaking. In the past week alone there have been more than 100 aftershocks measuring above 3.0 on the Richter scale.