1. New Zealand Automotive Industry
By: Robert Geber, Theresa Console, Ulisses Flores, Paige Slattery

2. Cultural Environment
Located in the Southwestern Pacific Ocean, consists of 2 main Islands. North And South Islands. (Near Australia)
Nation’s capital is Wellington, located on the North Island.
Originally settled by polynesians around year s. Developed distinct Maori culture.
After being colonized by Britain in 1841, New Zealand gained dominion over themselves in 1907.
Today: Ranks highly in international comparisons of Health, Education, Economic Freedom, and Quality of Life.

3. Culture Population: 4.79 Million people (2017)
3.86 Million people (80 % of the population) are within the age range of driving ( years old).
Language: English is spoken by percent of the population. Sounds very similar to an Australian accent.
Remaining 3.73 speak indigenous language of Maori
Religion: 48% Christian, 42% stated they had no religion, and remaining 10% consists of culmination of remaining religions.

4. Hofstede's dimensions
Blue: New Zealand Purple: United States

5. Automotive Culture In New Zealand
- Founded from a traditionally “do-it-yourself” mentality.
- Relaxed import laws in New Zealand have brought a large influx of new and used cars from the Japanese Domestic Market (JDM) and European Market.
- Import licenses are not required to import goods into New Zealand and import restrictions are not imposed for purely trade-related reasons.
- Large community of people who buy used old vehicles and tune them up.

6. Relaxed Import Laws
New Zealand imports about 1.6 million used vehicles and about 2 million new vehicles a year.
About 46% of cars imported are used.
As a result of the relaxed laws in New Zealand, cars routinely sell for between 10 per cent and 30 per cent less

7. Legal Environment
System of Common Law and Statute Law based on English System
House of Lords and (English) Court of Appeal decisions are still highly persuasive, and English decisions are still often cited in New Zealand courts.
World Bank's “Doing Business” 2016 publications placed New Zealand in top 2 for overall ease of doing business.
- 1st for starting a business, 1st for registering property, 1st for getting credit, 2nd for protecting minority investors, 3rd for dealing with construction permits

8. Focused Legal Environment
In order for an overseas company to carry business in New Zealand, it must apply to be registered under the Companies Act of 1993 as an “overseas company”.
Overseas Investment Act of 2005
Any acquisition of sensitive land, or significant business assets require consent from Overseas Investment Office.
Main structures to establish a business in New Zealand are:
establishing a branch office for an overseas company
setting up a (or purchasing an existing) New Zealand registered company
other options include trusts and partnerships (including limited partnerships)
Limited Partnerships Act of (Incentive for international investment)- Investors benefit from being taxed as a partnership while still providing the protection of limited liability and maintaining a separate legal entity from the owner of the company.

9. Social Environment

10. Social Environment
North Island
Auckland 33%
Wellington 11%
Waikato 9%
South Island
Canterbury 12%
Otago 4%
Southland 2%
European Descent
Maori
Asian Descent
Pacific Descent

11. Also known as “Kiwis”
“Friendly but reserved” “Open but respectful”
Incorporates a lot of traditions from the Maori culture
Grace
Greetings
Mannerisms

12. Wealth Distribution
European 91%
Maori 4%
Asian 3%
Pacific 1%
Age group % % % % %
65+ 21%

13. Economic Environment Least regulated 3rd freest 2nd one of the world’s
free-market based economies
world’s
2nd
easiest country to do business in
Heritage Foundation rated NZ the
3rd freest
economy in its 2015 Index of Economic Freedom

14. Economic Environment

15. Economic Environment

16. Monetary Environment
1 New Zealand Dollar
$0.68 cents

17. Trade Environment

19. Trade Agreements
Around 95% of goods come into New Zealand tariff free.
New Zealand is for less government regulation and restriction
Part of many trade organizations/agreements
World Trade Organization (WTO)
Asia Pacific Economic Cooperation (APEC)
Da Nang Declaration
21 countries
Closer Economic Relations (CER)
Affected around 130 billion dollars worth of trade in 2013
Trans Pacific Partnership (TTP)
Affect 40% of the world’s GDP
12 countries involved

20. Imports at 65.1 billion
Exports at 67.5 billion
Trade surplus of 2.3 billion
Vehicles, parts, and accessories from Japan were the largest imported expenses.
1.9 Billion

21. Top 10 Purchased vehicles of 2016 for New Zealand
Ford Ranger
Toyota Hilux
Toyota Corolla
Holden Colorado
Toyota Rav4
Mitsubishi Triton
Kia Sportage
Nissan Navara
Mazda CX-5
Suzuki Swift

22. Political Environment
Role of head of state is held by Queen Elizabeth II, as Queen of New Zealand
Prime Minister, since October 26th of this year, is Jacinda Ardern
Democratic engagement is strong. Typically between 75-80% of New Zealanders turn out to vote in general elections.
Three branches of government
The Legislature (parliament) The Executive The Judiciary

23. Size & Growth Sales expected to reach 150k for 2017
4th largest in the world
770 motor vehicles per 1000 people
14,594 new car sales in Nov. alone
28% corporate tax rate
GDP per capita 38,823 US$ (2016)

24. Trends
No new car manufacturing or assembly in New Zealand for over a decade
Electric and hybrid cars on the rise
A rapidly growing population driving a surge of new car sales
An increasing shift towards car sharing
New car imports topped half a billion NZD

25. Competitive Environment
Small, highly competitive market
Most popular manufacturers
Toyota
Ford
Holden
Mazda
Mitsubishi
Hyundai
Nissan

26. Competitive Advantage
Ford
Consumer experience initiatives
Ext. Roadside Assistance
Service Loan Cars
Ford Mapcare
Toyota
Cars are built to exacting standards
Affordable used, not new electric cars
Best selling commercial vehicle
Hilux

27. Analysis
Should a U.S. company get into the New Zealand Automotive Industry?
Yes.
Important to be a dominant player in the Asian Pacific Market.
Being In New Zealand could provide a major advantage by having a production plant there.
New Zealand business laws and infrastructure make it easy to get started, but remaining competitive will be highest priority.

28. Works Cited