MMAL goes it alone

5 October 2020

The Australian Competition and Consumer Commission (ACCC) is seeking submissions from interested parties after the Mitsubishi Motors Australia Limited (MMAL) lodgement of an exclusive dealing notification with the ACCC.

The notification involves MMAL offering a 10-year or 200,000km (whichever occurs first) warranty to purchasers of new Mitsubishi vehicles on condition that the purchaser exclusively acquires all scheduled services through the authorised Mitsubishi Motors dealer network.

Currently, MMAL offers a five-year warranty for new Mitsubishi vehicles. Under the proposed arrangements, purchasers will continue to remain entitled to a five-year warranty for their new Mitsubishi vehicle when they have their vehicle serviced in accordance with MMAL’s service schedules and associated documentation (regardless of whether they service their new Mitsubishi vehicle at an MMAL dealer or service centre).

In addition to the five-year warranty, purchasers will be entitled to a complimentary 10-year warranty (the initial five-year warranty plus an additional five years) where (in addition to complying with MMAL’s service schedules and associated documentation) they exclusively service their new Mitsubishi vehicle with an MMAL dealer or service centre. Where a purchaser chooses not to have their new Mitsubishi vehicle serviced with a non-MMAL dealer or service centre, they will lose the benefit of the 10-year warranty, but will retain the five-year warranty. Purchasers will remain able to obtain repairs (as distinct from servicing), including repairs undertaken pursuant to the consumer guarantees set out in the Australian Consumer Law, from an independent repairer or service centre without affecting the 10-year warranty.

Submissions to the ACCC can be made by email to adjudication@accc.gov.au using the subject ‘RN10000433– Mitsubishi Motors Australia Limited – submission’.

Alternatively, oral comments can be made by contacting Andrew Mahony on (03) 9290 1983.

VACC is making a joint submission with the Motor Trades Association of Australia (MTAA) on behalf of independent repairers on the basis that this exclusive dealing notification, particularly the requirement to have all scheduled services completed at an authorised dealer, is anti-competitive conduct and will substantially lessen competition in the automotive aftermarket service and repair sector.

If the ACCC approves the proposed arrangements it will set a precedent for other auto-makers to offer similar warranty deals.

The closing date for submissions is 9 October 2020.

Further information:
ACCC: MMAL lodges exclusive dealing notification with ACCC
VACC Bulletin: Important MMAL Notice