The Federal Government call for a voluntary code of conduct between independent automotive repairers and car manufacturers is welcomed by the Australian Automotive Aftermarket Association (AAAA).

AAAA Executive Director Stuart Charity said yesterday's announcement by Assistant Treasurer David Bradbury (Visit http://ministers.treasury.gov.au/DavidBradbury) was an endorsement of the Choice of Repairer campaign launched by the Association in April 2009.

"The AAAA introduced the Choice of Repairer campaign to protect choice and competition in the vehicle repair and service sector by eliminating any technical or legal barriers that impact on the Australian consumers’ right to have their vehicle serviced and repaired at competitive prices in the workshop of their choice. We congratulate Assistant Treasurer Bradbury for recognising the need to address this important consumer issue and his leadership in facilitating a solution," said Stuart Charity.

"With each model cycle, modern vehicles are becoming increasingly complex and more reliant on computers and electronic systems. This makes access to the data required to service and repair them even more critical.

"However, vehicle manufacturers in Australia have not provided the local independent aftermarket with uniform access to the data and tools required to service and repair their vehicles.

"The AAAA recognised this as a growing consumer choice and competition issue many years ago. By restricting independent workshop access to up to date service and repair information, vehicle manufacturers limit customer choice and price competition by forcing vehicle owners to get work done at their dealerships," said Stuart Charity.

A timetable for action

Presently more than 60% of vehicle servicing in Australia is done by independent workshops rather than authorised dealers, so Australia’s car owners have “voted with their feet” on where they prefer to take their vehicles to keep them reliable and safe. Many people living in regional Australia can live hundreds of kilometres from their nearest dealership making the role of multi brand independent repairers critical to the infrastructure of regional Australia.

The Federal Government announcement is in response to the recommendations made as a result of a Commonwealth Consumer Affairs Advisory Council (CCAAC) inquiry into the sharing of vehicle repair and service information. The inquiry found that the withholding of vehicle data had the potential to result in consumer detriment and that action was needed now.

The Government specified that substantial progress on a voluntary code of conduct must be made by the end of 2013. If industry fails to achieve that, the Government will implement a process to examine regulatory options, including a mandatory code of conduct. The plan also includes a review of the adequacy of the industry led outcome within 18 months of implementation.

The Federal Government move to implement a voluntary code of practice for vehicle data sharing aligns Australia with the USA and Canada. There is already regulatory regime in place in Europe. These arrangements include the same car companies that supply the Australian market

Consumer education on warranty rights

"The industry also welcomes Assistant Treasurer Bradbury's decision to ask consumer agencies to educate car owners that they are not required to have their vehicle repaired by 'authorised' repairers to ensure continuation of their manufacturer's warranty," Stuart Charity said.

“As a result of misleading warranty information and confusing warranty conditions, consumers are often led to believe that they are tied to a specific dealer service network to maintain their warranty coverage and are effectively deprived of their right of market choice”. 

"The AAAA looks forward to continuing to work with CCAAC Chair Colin Neave AM to develop the voluntary code. We want to ensure that all Australian vehicle owners maintain their right to choose who services their vehicle in an open and competitive market”.

Please CLICK HERE to read Assistant Treasurer David Bradbury's media release.

Please CLICK HERE to read an article that ran in the Herald Sun in Melbourne yesterday about this development.