New Car Retailing Industry Market Study Final Report 2018

In 2016 the Australian Automotive Aftermarket Association presented the results of an independent study of 325 independent repairers who service more than 18,000 cars per week. This study was designed to quantify the direct effects of the withholding of codes, software updates, Technical Service Bulletins, vehicle specific tooling and access to repair information portals by vehicle manufacturers from these predominantly small, family operated businesses and their customers. The independent study found that the direct losses suffered by independent vehicle repairers in time, effort and overall productivity comes at a staggering cost to of more than $4 billion per annum. The overwhelming majority of this cost is absorbed by independent repairers and not passed onto consumers, but such drastic productivity and profitability losses clearly cannot be sustained in an industry that employs tens of thousands of Australians and provides trusted quality automotive repairs, service and maintenance to millions of Australian consumers each year.

Sean Buckley was part of this study and  considered to be a leader in the aftermarket car servicing industry by both colleagues and competitors alike. He appeared on behalf of Ultra Tune and other independent after sales service providers in December 2016 at the Australian Competition and Consumer Commission and Australian Automotive Aftermarket Association enquiry into the monopoly that new car manufacturers are attempting to sustain on after sales servicing. The hearing was chaired by Commissioner Sarah Court with ACCC Chairman Rod Sims also present. The ACCC hearing investigated the following issues:

• The car industry’s compliance with consumer guarantees obligations and the ability of consumers to enforce their rights
• False, misleading and deceptive practices in performance, fuel efficiency, fuel consumption and emissions
• The effect on competition and consumers of post-sale care arrangements (such as servicing)
• Whether consumers and businesses could be affected by any restrictions on vehicle access to data

In August 2017 the Australian Competition and Consumer Commission (ACCC) released their draft report of its market study into Australia’s new car retailing industry , and the three key observations were:

1. car manufacturers’ complaints handling systems and policies are preventing consumers from obtaining the remedies to which they are entitled under the Australian Consumer Law (ACL)
2. a mandatory scheme should be introduced for car manufacturers to share technical information with independent repairers
3. buyers of new cars need more accurate information about new cars’ fuel consumption and emissions

New Car Retailing Industry Market Study Final Report 

Following on from the detailed recommendations made in the ACCC’s Draft Report which was released in August, the ACCC’s Final Report recommends a mandatory scheme that will compel all car companies operating in Australia to share the same repair and service information that they currently share with their dealerships, with independent repairers on fair and reasonable commercial terms.

The final report on data sharing was published on the 14th December 2017 and will have a significant impact on the independent after sales service providers such as Ultra Tune.

Sean Buckley forcibly presented at the initial inquiry and this level of input and evidence from a independent car servicing business was key to the decision by the ACCC.

Key recommendations include:

• a new mandatory scheme be introduced setting out the rules for car manufacturers to share technical information with independent repairers. This should:
• cover all car manufacturers who sell their cars in Australia
• include real time access for independent repairers to the same technical information car manufacturers make available to dealers
• provide a process for independent repairers to access environmental, safety and security-related technical information, including the vetting of those seeking to access such information and tracing its use
• be available on commercially fair and reasonable terms

This has been a fantastic win for both independent retailers and consumers, led AAAA members such as Sean Buckley who have spent time collating and presenting information which has formed this large scale successful campaign!

For the full report please visit https://www.accc.gov.au/about-us/market-studies/new-car-retailing-industry-market-study/final-report