Is this the end of the local mechanic?

Written By Unknown on Minggu, 19 Oktober 2014 | 04.29

Costly ... the Australian car industry has been accused of locking motorists into dealership servicing programs. Source: Supplied

LOCAL mechanics could soon become extinct and motorists may be forced to pay more for vehicle servicing after the car industry blocked independent repairers from getting access to complete maintenance data and specialist tools to fix modern cars.

The Federal Chamber of Automotive Industries — the body that represents car companies — has walked away from negotiations with independent repairers and issued its own voluntary code of conduct on car servicing.

But the Australian Automobile Association, which represents seven million motorists nationally, says the code threatens to strip away the basic rights of consumers and local mechanics because it blocks access to critical information, computer upgrades and diagnostics equipment.

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About 20,000 independent workshops across Australia and approximately 1500 new-car dealer service centres maintain 17 million vehicles nationally.

Independent operators argue that as cars become complex "computers on wheels", smaller workshops need complete access to maintenance information and better diagnostics tools, rather than the bare essentials covered by the code.

Under the pump ... independent workshops want the same access to information as car dealerships. Source: Supplied

In Europe and North America it is compulsory for car companies to make available to independent workshops the same complete maintenance data and diagnostics equipment provided to new-car dealership service centres.

In most cases, independent mechanics in Europe and North America pay a daily, weekly, monthly or yearly subscription fee to access the most up to date information and diagnostics tools to work on certain cars.

But in Australia the car industry has been accused of locking motorists into dealership servicing programs.

"This shows complete arrogance and contempt on behalf of the car makers," said Andrew McKellar, the chief executive of the Australian Automobile Association, the peak body representing the NRMA, RACQ, RACV, RAA, RAC and other motoring groups in each state and territory.

"(The FCAI) is demonstrating little concern for the consumer and they are gunning for independent repairers and service providers. That's a bad thing for consumers as it reduces choice and reduces competition."

Money spinner ... dealerships source most profits from service and parts. Source: Supplied

Figures from market analysts Deloitte show, on average, service and parts account for more than 50 per cent of a dealership's profit; new-car sales contribute just 5 per cent to the bottom line.

"The new code has so many loopholes and so many exclusions as to make it utterly worthless," said Mr McKellar.

"It is a complete con. They're putting forward the appearance they're doing the right thing but if you dig into the detail it heavily restricts what is available (to independent repairers)."

Stuart Charity the executive director of the Australian Automotive Aftermarket Association, which represents independent mechanics, repairers and parts suppliers, said: "This is not a dealer-bashing exercise, dealers are the meat in the sandwich in this".

"New-car dealerships are forced by car companies to have expensive showrooms and they need to recoup those costs by charging more for servicing," said Mr Charity. "That means car owners end up paying more for routine maintenance."

The AAA is concerned that restricting access to up-to-date servicing data could also have a negative impact on car safety.

"If people don't get their cars properly maintained because they are concerned about costs, then absolutely there is a risk this could affect vehicle safety," said Mr McKellar.

Up in the air ... new regulations for car servicing have been criticised by independent repairers. Source: AFP

The chief executive of the Federal Chamber of Automotive Industries Tony Weber said a 2012 Commonwealth Consumer Affairs Advisory Council (CCAAC) review found there "does not appear to be any evidence of systemic consumer detriment regarding the sharing of service and repair information in the automotive industry".

The advisory council recommended the automotive industry develop "within a reasonable period of time" a code of practice that "ensures there is a process for independent repairers to access repair information".

"Now, 23 months later, we are the only ones that appear to be making progress on this matter," said Mr Webber.

"If there is such a crisis according to others, why have they not issued their recommendations? Where is their commitment to the consumer? It's one thing for them to jump up and down but what are they doing?"

The Australian Automotive Dealers Association claims independent repairers already get access to relevant information.

The Victorian Automobile Chamber of Commerce (VACC) has offered to make their extensive repair information library available to independent repairers nationwide for a fee. The VACC claims it answers 98 per cent of technical enquiries in the first phone call.

But independent repairers claim the new code does not give them access to enough information because it lists 16 exemptions, including access to the latest diagnostics tools, and important vehicle updates that do not qualify as a recall but are fixed discreetly during routine servicing.

Federal issue ... Bruce Billson says independent repairers should have a "level playing field". Picture: Derrick den Hollander. Source: News Corp Australia

"Independent repairers in Europe and North America get access to this information and the right diagnostics tools, so why are the car companies blocking these in Australia? It's blatant anti-competitive behaviour," said Mr Charity.

"These days cars are computers on wheels, if you don't get access to the complete technical information, then a car owner is not going to get the same level of service," he said.

The Federal Minister for small business, Bruce Billson, said it was important that independent repairers had a "level playing field" when competing with car dealership service centres.

"While respecting that the FCAI may seek to introduce a voluntary code for its members, I would be concerned if agreement on the broader industry code was not reached," said Mr Billson.

"I have been contacted by (independent repairers) concerned that the FCAI does not address key aspects raised in the CCAAC report. Codes should be developed to ensure choice for consumers as to who repairs their vehicle."

This reporter is onTwitter: @JoshuaDowling


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