The man got back into his vehicle, which she believed was a Toyota Hilux, and drove over Mr Sutherland's bike.
''Then he put the car in gear and drove right towards me,'' she said.
''I went 'Oh my God, oh my God ... he's coming towards me','' Ms Kennedy said, her voice breaking. She managed to avoid the vehicle but the event had left her ''absolutely terrified''.
Mr Sutherland said it was the first time in 30 years of cycling that ''someone has got out of their car'' and threatened him.
''I'm glad it was me and not my daughter or someone else's son or daughter,'' he said.
''Motorists have no idea how vulnerable cyclists are - and they don't seem to really care.''
He had referred the matter to police, and would not comment on the specifics of the incident, aside from saying: ''It's fine. It's a fat lip.''
Ms Kennedy said she felt the driver was a ''ticking timebomb''.
''This guy's going to kill somebody,'' she said.
''If something's not done ... it's open slather for everybody to carry on like that.''
Motorists' attitudes to cyclists needed to change, she said.
''You can't go around fearing for your life when you are out doing something you enjoy.''
Mr Sutherland said he faced abuse regularly while cycling in Dunedin.
''There is a lot of antagonism towards cyclists at the moment, because of the cycling lanes.''