ACCC: Fair go mindset ‘noticeably missing’ from car industry

The ACCC has put car companies on notice for failing to give customers a “fair go” with regard to servicing and repairs.

Speaking at the Australian Automobile Aftermarket Association’s Autocare conference, ACCC chair Rod Sims said the government group will push “to ensure the automotive industry remains competitive and fair to consumers and businesses alike”.

Sims said the Turnbull government is considering legislation forcing car companies to work with independent third-party repairers, giving them access to complex software required to work on modern vehicles.

Michael Sukkar, Assistant Minister to Treasurer Scott Morrison, has indicated support for reforms forcing carmakers to cooperate with independent workshops.

Honoured to attend the Australian Automotive Aftermarket Association Autocare conference, and to outline the Government’s commitment to consumers and the fair access to repair information and parts. #auspol pic.twitter.com/mB0N4q8IXy

— Michael Sukkar (@MichaelSukkarMP) May 4, 2018

For his part, Sims said “there is a strong case for change and particularly as it relates to car servicing”.

“To fix today’s cars, repairers need access to volumes of complex technical information held digitally by car manufacturers,” Sims said.

“This, however, allows car manufacturers to control who has access to the technical information needed to fix cars, often favouring their own dealer and preferred repairer networks over independent repairers.”

The FCAI, peak body for the automotive industry, has expressed reluctance to allow independent repairers access to manufacturer data.

In a letter sent to the ACCC in 2017,  the FCAI said “motor vehicles contain more than 60,000 parts and more lines of computer code than a commercial jet aircraft. To have a regulatory regime that treats motor vehicles in the same way as a toaster is problematic”.

“In the FCAI’s view, mandating the sharing of technical information, will not lead to better outcomes for consumers,” it said.

“Successful repair and servicing of new vehicles can only be achieved when highly specialised technical information is used by fully trained personnel using recommended diagnostic equipment and stipulated specialised tools.”

Manufacturers have expressed environmental, safety and security concerns surrounding widespread access to vehicle software.

But Sims pointed to Ford’s handling of customer complaints surrounding faulty transmissions – and subsequent $10 million fine – as well as the Takata airbag scandal and Holden and Hyundai customer service issues as evidence car companies were not doing the right thing by consumers.

“Australia might not manufacture cars anymore, but we can still apply the Australian ‘fair-go mindset’ to how we do business,” he said.

“This ‘fair go mindset’ has been noticeably missing recently. It must be restored.”