News & Events

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Published: 19 April 2018

After 18 months, ACCC have released their final report of the market study into the new car retailing industry. MTAA played a key role in advocating for the business interests of MTAA member associations business members across the automotive industry.

MTAA and State and Territory Member Associations advocated strongly for the ACCC to:

• Confirm the impact and identify a solution to ensure fair and reasonable access and use of technical and repair information for independent mechanical and motor body repairers.
• Examine concerns surrounding proposed changes to Australian Consumer Law definitions of major and minor faults, among other issues.

MTAA CEO, Richard Dudley, said the Federation and State and Territory Association Members were pleased the ACCC final report has largely addressed these critical issues and called on the Federal Government to support the recommendations and for Government and Industry to get on with implementation.

MTAA are continuing the pressure on government to deliver on the report’s recommendations.

The ACCC New Car Retailing Industry Market Study final report can be accessed using the link: Download .pdf

Details

Published: 19 April 2018

MTAA and its member associations are providing advice to business constituents, including independent mechanical repairers, so that they are aware and can comply with the biggest product recall in Australian automotive history.

MTAA is also advocating to the ACCC to ensure that the recall does not adversely affect automotive business and have been influential in persuading the ACCC to make changes to recall requirements to address shortcomings / issues identified by MTAA member associations and their business constituents.

MTAA is also advocating that the ACCC provide clarity to industry on recall requirements including undertaking a national information roadshow to assist compliance from industry and to ensure automotive businesses understand their responsibilities and obligations.

MTAA is providing to its member associations comprehensive and current information updates so that business members have increased clarity over recall requirements.

OVERVIEW OF THE RECALL:

On Wednesday 28 February 2018, the Federal Government announced a compulsory recall for all vehicles with defective Takata airbags following an Australian Competition and Consumer Commission (ACCC) investigation.

The Government acted because the ACCC investigation provided evidence that:

• a reasonably foreseeable use of vehicles with defective Takata airbags may cause injury to drivers and/or passengers, and
• one or more suppliers of vehicles with defective Takata airbags have not taken satisfactory action to prevent those vehicles causing injury to drivers and/or passengers.

A number of vehicle suppliers have voluntarily recalled vehicles fitted with defective Takata airbags in Australia. The compulsory recall requires allsuppliers of vehicles with defective Takata airbags to recall all affected vehicles in Australia and to replace the airbag device.

The compulsory recall specifies the manner and timing of the recall activity, which may be different to recall activity under the voluntary recalls. Suppliers face penalties if they don’t meet the requirements in the compulsory recall.

A compulsory recall doesn’t compel consumers to bring in their vehicles for replacement of the airbag, but it does require vehicle suppliers to undertake various obligations which will facilitate the recall and replacement of affected airbags.

The compulsory recall applies to:

• all vehicles that are subject to existing Takata voluntary recalls, and
• approximately 1.3 million additional vehicles that have not been voluntarily recalled.

It is the responsibility of vehicle suppliers and manufacturers and not independent repair businesses or consumers to replace the Takata air bags in affected vehicles.

Vehicles that require the replacement of airbags are identified by their VIN number and can be identified by using the following links:

https://www.productsafety.gov.au/recalls/compulsory-takata-airbag-recall/takata-airbag-recalls-list

Suppliers are required to submit a Recall Initiation Schedule to the ACCC by April 2018. The schedule will advise consumers with an affected vehicle when their vehicle will be recalled. The Recall Notice,requires independent second hand / used vehicle dealers to clearly communicate the serious safety risk and the need for future replacement to prospective purchasers prior to the sale of any vehicle with an affected Takata Airbag Inflator. The Recall Notice also prohibits the sale of vehicles with affected Takata Airbag Inflators that are under ‘active’ recall by a vehicle manufacturer.

The difference between ‘active’ versus ‘future’ is explained below.

• Independent second hand / used vehicle dealers must ensure that they comply with their obligations under the Recall Notice or may face financial penalties for contravening the Australian Consumer Law (ACL).

The attached information briefs by MTAA have been written to assist MTA Members and have been examined by the ACCC to ensure compliance and correctness.

To access the MTAA provided Takata air bag recall information briefs please access the following links:

• MTAA Takata Airbag Information Brief No. 1 (1 March 2018).  Download .pdf
• MTAA Takata Airbag Information Brief No. 2 (3 April 2018).  Download .pdf

For more information on the Takata airbag recall please access the ACCC Product Safety website using the following link: https://www.productsafety.gov.au/recalls/compulsory-takata-airbag-recall/faq-for-takata-airbag-recalls

Details

Published: 18 April 2018

In 2016/17, MTAA played a key role advocating for independent automotive repairers and advising the Australian Competition and Consumer Commission (ACCC) when they were undertaking an in-depth 18 Month analysis into the new car retailing industry. This included providing submissions to the ACCC for interim and final reports.

MTAA submissions can be accessed using the following links:

• MTAA submission for the interim report: Download .pdf
• MTAA submission for the final report: Download .pdf
• MTAA supplementary submission for the final report: Download .pdf

The ACCC New Car Retailing Industry Market Study Final Report can be accessed using the following link:  Download .pdf

MTAA and state and territory member associations advocated strongly for the ACCC to:

• Confirm the impact and identify a solution to ensure fair and reasonable access and use of technical and repair information for independent mechanical and motor body repairers.
• Examine concerns surrounding proposed changes to Australian Consumer Law (ACL) definitions of major and minor faults, among other issues.

MTAA CEO, Richard Dudley, said the Federation and state and territory association members were pleased the ACCC final report has largely addressed these critical issues and called on the Federal Government to support the recommendations and for Government and industry to get on with implementation.

MTAA and members have now turned their attention and resources to the immediate action required to address the ACCC recommendation for a mandated scheme to ensure access to technical and repair information by all automotive industry sector participants and independent repairers in particular.

‘MTAA believes this mandated scheme, complete with an accreditation process or safeguard, must be developed and determined by mid-2018 for implementation by 1 February 2019 following consideration by regulators and Government’, Mr Dudley said.

MTAA provided facts sheets for mechanical repairers concerning the outcomes of the ACCC market report that can be accessed using the following link. Download .pdf

MTAA also provided facts sheets for dealers concerning the outcomes of the ACCC New Car Retailing Market Study Report that can be accessed using the following link. Download .pdf

MTAA also provided a media release which can be accessed using the following link. Download .pdf

Access to repair information

Building on the recommendations from the Australian Competition and Consumer Commission (ACCC) new car retailing market study, MTAA is enthusiastically advocating for the introduction of a system that ensures the reasonable access and use of technical and repair information for independent mechanical and motor body repairers.

By taking a leading role in the development of a system to ensure fair and equitable access to repair and technical information, MTAA and member associations are:

• Refuting claims by some industry associations that the provision of accessto repair information has led to increases in vehicletheft are inaccurate.
• Forming relationships with key international industry experts who have in-depth experience and knowledge of systems of delivering repair information in other key international markets; including the pros and cons of each system.
• Facilitating meetings involving international experts, key Government officials (including from the ACCC and Commonwealth Government’s Treasury), key members of MTAA Member Associations and other key industry stakeholders.
• Developing a prescribed mandated code / system for presentation to Government that includes involvement of industry and has a required level ofACCC oversight and enforcement of compliance that is afforded to other mandated codes including the Franchising Code and the Oil Code.
• Advocating for a Code that will:
  • List security exempt items. (This is already determined in the USA and Europe)
  • Identify an accreditation scheme so that independent repairers have the accreditation or certification to access repair information.
  • Include a dispute resolution mechanism.

AARA will play a key in advocating for mandated prescribed code and will provide technical information and user requirements for any system developed that distributes repair information to independent repairers (including access to service bulletins).

Environmental compliance

ARAA and MTAA will advocate for environmental policies (including compliance requirements) that do not adversely affect the business operations of independent repairers. For example, clarity will be sought on the lack of transparency of regarding the operation of the oil levy including the level of funds generated and what the funds are used for. Another example includes clarifying coolant disposal and recycling requirements across Australia’s states and territories.

Skills shortages

The automotive repair and maintenance sector accounts for the largest share of the automotive industry activity and employs 142 people within 37,406 businesses. However, skill shortages are at the highest levels ever recorded with a total shortage of 27, 377 skilled personnel which is expected to rise to 35,083 during 2017/18.

Key reasons for skill shortages include: declining levels of new entrants into automotive trades, the poor quality of available labour, and problems with attraction and retention of labour. It is also the result of Government discontinuing type 457 immigration working visas.

MTAA and AARA aim to take a key role in providing advice toautomotive education providers (including MTAA member associations) to improve training provision and ensure that the appropriate skills are being adopted for future industry requirements.

Business to business arrangements

Consumer and business rights and obligations are a concern for independent automotive repairers across all Australian States and territories. Concerns include thefitment of consumer supplied parts and the failure of parts used in repair processes that increase the risk of litigation; particularly in relation to product liability.

MTAA and AARA will support individual MTAA member associations in efforts to develop disclaimers and education material on the Australian Consumer Law (ACL) for industry. These disclaimers are often included on job cards (dependent on state requirements as some states don’t use job cards).