The CEO of Farmer Autovillage, Mike Farmer
demonstrated his business acumen by starting his presentation with an offer to assist Anna with her ambulance proposal!
Farmer's Motor Group opened in 1991 with 12 staff on Elizabeth Street. In 2008 at the start of the GFC Farmer Autovillage was opened on Hewletts Rd and grew to have a turnover of $150m pa. They now employ 120 staff and sell 250 vehicles per month. The business has 45% of the local new car market and has won many awards.
Mike described the Autovillage concept ranging from many brands under one roof, shared resources, risk mitigation, cost efficiencies, central management and add-on services.
Electric vehicles were the next topic and it is likely many more vehicles will be available in the next 18-24 months. Currently, the media hype is ahead of manufacturer’s ability to supply. Pricing will settle as manufacturing and marketing investment improves. The tipping point for customers is 400km on a single charge. Nissan Leafs (the most popular EV) which currently have a range of up to 170km will in three years be able to swop old batteries and be able to travel 400km.
Mike explained the challenges that need to be overcome which were; the technology behind quick charging needs to improve to 150 amps; compliance issues in the electrical industry, public acceptance of soundless vehicles and change.
Autonomous vehicles were the next subject and Mike believes these are 30 years away. Not because of the technology but rather insurance and liability issues not being able to be resolved.
Mike finished off with the sobering statistic that New Zealand had the oldest car fleet in the southern hemisphere, and that meant the road toll could be halved if most vehicles had been purchased after 2011, due to modern safety features.