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Manufacturers to withdraw if standard becomes law

2 October 2019

Response to Honda, Yamaha and Suzuki’s plan to withdraw from the ATV market if a draft standard, known as the ATV Mandatory Safety Standards, becomes law has raised alarm bells throughout the industry in Australia, according to the Victorian Automobile Chamber of Commerce (VACC).

“For instance, Honda Australia holds 23.5 percent of the national ATV sales market – that’s a serious hold. Any withdrawal would be disastrous in what is already a fragile and distressed market,” declared VACC CEO, Geoff Gwilym.

Members of the VACC Motorcycle Industry Division (MID), along with the Farm and Industrial Machinery Dealers Association (FIMDA) have approached the Chamber with concerns regarding a recent public statement issued by the key manufacturers, announcing plans to withdraw from the ATV market entirely if the draft, proposed by the Australian Competition and Consumer Commission (ACCC), gets through. 

MID and FIMDA are disappointed that the ACCC has ignored the manufacturer stance that rollover protection devices have no proven benefit. It is the view of both Chamber divisions that a focus on the adherence to the safety warnings, as highlighted by the manufacturers, are sufficient. This includes warnings regarding helmet use, the benefits of training and rider restrictions for under-age persons.

It is VACC’s view that ultimately the ACCC and manufacturers must resolve this matter properly – and promptly, or the entire retail industry will suffer. 

From a VACC member standpoint, the Chamber is concerned about how the withdrawal of major brand products from the Australian market will impact retail businesses.  

“Automotive business owners – particularly those in regional Victoria – must be given every opportunity to see a return on a substantial investment, and not be collateral damage,” said Gwilym.

Depending on the agreement outcome, it is VACC’s position that dealers may have cause to mount a complaint or action either under Australia’s unfair contract terms regime, or via the Franchising Code of Conduct. 

Moving forward, the Victorian Automobile Chamber of Commerce remains committed to supporting its members and the wider industry, in the fair pursuit of business and contract protection.


ENDS

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