Media releases

VACC Calls for Enhanced ACCC Focus on Automotive Industry Challenges

21 October 2024

Melbourne, 21 October - The Victorian Automotive Chamber of Commerce (VACC) has today submitted its response to the Australian Competition and Consumer Commission's (ACCC) 2024 Strategic Review, highlighting critical issues facing the automotive industry and calling for increased regulatory attention.

Key points from VACC's submission include:

  1. Electric Vehicle (EV) Education: VACC emphasises the need for better consumer education regarding EVs, particularly concerning servicing requirements and associated costs. The organisation urges the ACCC to play a crucial role in managing consumer expectations and countering misinformation about EV maintenance.
  2. Warranty and Recall Processes: VACC highlights ongoing issues with car manufacturers rejecting or delaying warranty reimbursements to dealers. The submission calls for stricter enforcement of fair compensation for warranty, product defect, and recall reimbursements.
  3. Motor Vehicle Service and Repair Information Scheme: Whilst acknowledging progress, VACC identifies several areas requiring immediate ACCC attention, including enforcing the "fair and reasonable" standard for data access and ensuring compliance of third-party data aggregators with safety requirements.
  4. Environmental Claims and Sustainability: VACC stresses the importance of ACCC oversight in mitigating unrealistic consumer expectations about EVs and protecting automotive businesses from potential vexatious claims.
  5. Unfair Contract Terms: The submission highlights concerns about unilateral changes to operations manuals in franchising agreements, which can significantly impact dealership profitability.
  6. New Market Entrants: With the anticipated influx of new EV manufacturers, particularly from China, VACC calls for proactive ACCC measures to ensure accountability regarding Australian Consumer Law obligations.

VACC CEO, Geoff Gwilym, stated, "As the automotive industry undergoes significant transformation, it's crucial that the ACCC focuses on these key issues to ensure fair competition and protect both consumers and businesses in our sector."

VACC also emphasises the need for balanced regulation that considers the rights and responsibilities of dealers, manufacturers, and consumers alike.

Read the full  ACCC 2024 Strategic Review Submission here: 2024 VACC ACCC Strategic Review.pdf

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For more information, please contact:

Andrew Molloy

Manager: Marketing, Media and Communications

0457 188 375 | amolloy@vacc.com.au

About VACC: The Victorian Automotive Chamber of Commerce (VACC) is the peak body for the automotive industry in Victoria, representing over 5,000 members across the state.

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