Imports to New Zealand of new and used vehicles combined fell 55% last month compared to the same month a year earlier. This translates to a drop from 19,344 units to 8606. Industry sources quote a smorgasbord of reasons, not all of them related to the recession.

They include tighter New Zealand regulations on emissions that effectively stop any vehicle built before 1992 coming across our wharves. There is also great competition at Japanese auctions for Japanese cast-offs, with countries such as Russia taking an interest. The fall in the New Zealand dollar is also a factor.

Car dealership failures have turned into a torrent since the resumption of business for 2009.

In Auckland alone, five car sales businesses have gone into liquidation or receivership or are close to it.

Used car dealership Falcon Motors of Otahuhu faces liquidation, with UDC Finance taking it to court on January 30 over debts. Falcon is trying to offload 51 cars on its website.

The Storey Motor Company of Mount Wellington hit the skids on January 21 when it was put into liquidation.

Finance industry experts estimate that New Zealand’s motor dealers urgently need $250 million dollars worth of credit to keep their businesses afloat.

The shortfall is due to the sudden withdrawal of large industry players GE Money and General Motors Acceptance Corporation. The two were responsible for credit lines to dealers totaling $250 million.

The two financiers have told customers that those lines are shortly to close down as the pair are ceasing to do business in New Zealand.