Three big car makers have been given first dibs on supplying $200 million worth of cars to bureaucrats in a deal that smaller manufacturers fear could harm their future.
While ministers are already chauffeured about in 7-series BMWs, the nation's civil servants will soon be driving executive Camry sedans, sporty
Rav4s, and environmentally trendy Prius wagons.
Economic Development Minister Gerry Brownlee is to announce today that Toyota, Hyundai and Mitsubishi have won a five-year deal to supply cars to government departments.
Previously, departments were allowed to choose who they bought their cars from.
The bulk-buy deal is a major policy departure that Brownlee promises will save the taxpayer $18.5m and provide a safer and more environmentally friendly vehicle fleet.
The ministry is looking at adding a further seven manufacturers to the supplies panel but the Herald on Sunday understands they will be smaller contracts for specialist vehicles. It is expected that the police will be allowed to keep buying Holdens.
Ana Zandi, a spokeswoman for the Motor Trade Association, said the deal was good for taxpayers but would financially hurt the manufacturers that missed out.
"Overall the market has been sluggish and this will only add to it for the companies that were not successful."
She said Nissan would be one of the biggest losers. Others to miss out on the big sales include Ford, Mazda, Kia and Skoda.
Herald on Sunday motoring editor Jacqui Madelin said the deal could change the balance of the entire motoring industry.
For instance Mitsubishi, which suffered about a 50 per cent decline in sales last year, could now take on a much higher profile in New Zealand.
