Automotive Right to Repair passes the Senate and is now law

The Australian consumer is the big winner from the recent passing by the Senate of the Motor Vehicle Service and Repair Information Sharing Scheme Bill

Following nearly a decade of campaigning by the Australian Automotive Aftermarket Association (AAAA), the new law will make it illegal for car companies to withhold information from qualified independent mechanics – keeping the cost of replacement parts, vehicle maintenance and repair affordable. The Chief Executive Officer of the AAAA, Stuart Charity, said the mandatory scheme will require all motor vehicle service and repair information to be made available for purchase by independent repairers at a fair market price. “It has been a long time coming but will be welcome news for the automotive industry. We started campaigning for this law a decade ago and have been through two government inquiries and even through a voluntary agreement in 2014 which was a complete failure,” Stuart said. The new law is designed to provide a fairer playing field for the repair and service of the 74 automotive brands available in Australia in an industry worth $23 billion annually. In Australia the motor vehicle servicing and repair industry involves nearly 35,000 businesses employing more than 106,000 Australians. Stuart said around one in 10 motor vehicles taken to repair workshops are affected by a lack of access to service and repair information. “This can often lead to higher service costs for consumers,” Stuart said. “What this law means is that the service and repair information that car manufacturers share with their dealership network must also be made available to independent repairers.” Stuart singled out the Federal Assistant Treasurer Michael Sukkar. “He has personally steered this through Government, and we thank him for his leadership.” This new law is the result of unprecedented industry cooperation with over 75 workshops hosting visits from their local MPs to demonstrate what happens when vehicle manufacturers withhold software updates and technical service bulletins. “We don’t have a very politicised membership and for our small owner operated workshops to get on board with direct emails and contact with their local MP is the best indicator we have that this is important to our members and to their customers,” Stuart said. The new scheme will be monitored for compliance by the Australian Competition and Consumer Commission. For more information, visit www.aaaa.com.au

BILL ARCHITECT PROMISES LAW WILL BE ENFORCED

Minister Sukkar explains Government and ACCC will ensure OEMs comply

Federal Assistant Treasurer, Michael Sukkar, has promised that the Government will ensure that the recently passed Motor Vehicle Service and Repair Information Sharing Scheme Bill will be upheld. “The Government will keep a close eye on industry’s response to the scheme and will work with industry, including manufacturers, to encourage compliance. The ACCC will regulate the scheme and there are strong penalties for violations– up to $10 million,” Minister Sukkar told Australian Automotive Aftermarket Magazine in an exclusive interview. “A joint industry-led organisation will also report to me on the operation of the scheme and to the ACCC on systemic issues. This organisation will be based on successful arrangements for the United States’ National Automotive Service Task Force,” he explained. “The Government stands ready to review and adjust the scheme in the future to respond to industry developments or actions to frustrate the scheme. Mechanisms to address these issues are built into the scheme through rule-making powers. “A key objective of the scheme is to encourage the provision of accessible and affordable information to repairers on fair and reasonable commercial terms. The ACCC will keep a close eye on prices to ensure the scheme meets this objective. “Under the scheme, car manufacturers can charge no more than fair market value. This is a recognised concept in both Australian law and in an international context. The factors to be considered in setting fair market value include the price charged to other repairers, reasonable recovery of costs, and the prices for information in overseas markets.” Minister Sukkar stated he was passionate about protecting independent automotive workshops. “The automotive repair is an important industry which keeps Australia’s 19.8 million vehicles on the road. There are nearly 35,000 automotive service and repair businesses in Australia, employing over 106,000 Australians,” he said. “I want consumers to be able to access servicing and repairs in a fair, competitive market. This ground-breaking legislation will give consumers more choice about where their vehicle is repaired. “These changes are a huge win for car owners. Consumers will be able to go to the repairer of their choice, without having to worry about whether they have the information to do the job. This will level the playing field for independent repairers and create a more competitive market. These reforms will bring down the cost of owning a car. “There will also be benefits for regional communities, which do not have access to affiliated dealerships. Car owners in regional Australia will be able to go to their local repairer instead of traveling huge distances, possibly on the back of a tow truck, to their nearest dealership. Ultimately, independent repairers understand the importance of this change and know that the benefits will flow through to their customers. “We have worked closely with the automotive industry, particularly the AAAA, on designing the scheme and they have done a fantastic job of raising awareness with their members. In fact, we have already received more than 350 emails from independent repairers, many I believe are AAAA members, thanking the Morrison Government for implementing the scheme.” For the full exclusive interview with Minister Sukkar see pages 20-21 of this edition of AAAM