In a submission to the ACCC’s ‘New Car Retailing Issues Paper’, Suncorp Insurance has called into question the prices charged by vehicle companies for genuine replacement parts.
Suncorp is one of Australia’s major insurance companies via its brands Suncorp Insurance, Apia, AAMI, GIO, Vero and Shannons – combined they spend $500-million per year on replacement parts.
The report claims a $21,000 mid-size hatchback, when assembled using genuine replacement parts purchased at full retail value, would cost $114,081 or 543 per-cent of the vehicle’s purchase price.
Suncorp says as well as the price gouging, the lack of transparency in Australia’s parts supply chain and delays in sourcing replacement parts are all leading to frustration amongst customers waiting for vehicle repairs and forcing premium increases.
Of major concern to vehicle manufacturers and importers, Suncorp has established its own parts operation called ACM Parts to sell non-genuine, recycled and aftermarket components.
Further, Suncorp is calling on the ACCC to require automotive companies to supply repair information, specifications and diagnostics to repairers to assist proper and price-competitive work to be completed.
The submission is a strong counter-position to the Federal Chamber of Automotive Industries’ genuine parts campaign which uses race driver Mark Skaife as the spokesperson.
MORE: ANCAP To ACCC - Dealers Misleading New Car Buyers Over Safety Ratings
MORE News & Reviews: Insurance | ACCC | Study