Batten down the hatches

Just when there was a real light at the end of the tunnel, someone has to start a war and blow it out!
The war so far has inflicted some substantial prices rises to fuel (and in particular diesel), which not only has a direct cost impact on consumers budgets, but also adds inflationary costs to pretty much everything, as diesel is used for trucking goods from point A to point B (not to mention the fuel oil for ships to get most of it to NZ in the first place). Consumers will look to rein in their spending. At the moment no one knows how long this may continue, but the longer it does the worse the effects, as fuel shortages bite and restrictions on use may have to be bought in by the Government – especially for the essential diesel supplies. Carless Days refrain anyone who lived through the 70’s! Repairers are probably in a better position than a lot of industries as keeping cars in tip top condition to ensure best fuel consumption will be a priority in the short term for customers and a lot of their work is already on a need it done now basis.
We have two articles in this issue looking at some of the effects of this. Our lead story on China Syndrome – the growth of Chinese car brands in the NZ market includes comment on how the fuel shortage has boosted the Chinese brands, which have extensive EV/PHEV and Hybrid options, whilst our Business Torque column looks more directly at the Oil Shock results.

Cathy