Auto industry blindsided by parallel import decision
Parallel import decision came with no warning says FCAI chiefThe Australian auto industry received no warning that the Federal Government would approve parallel imports this morning.
Speaking to motoring.com.au this morning, Federal Chamber of Automotive Industries Chief Executive, Tony Weber, said the auto body was informed via a "courtesy call very late yesterday afternoon".
On the suggestion that two years of lobbying by the body had come to nought, Weber told motoring.com.au: "the government hasn't listened".
"We don't know why the government has backflipped on this. There was no warning. The minister gave me a courtesy call very late afternoon yesterday."
Minister for Territories, Local Government and Major Projects, Paul Fletcher, will this morning formally announce that, effective from 2018, the government will allow private importation on new and near-new vehicles.
In a press release issued overnight, the Minister Fletcher stated: "The law will be changed so that, from 2018, a consumer will be able to personally import a new car or motorcycle from another country with comparable standards to Australia's, up to once every two years, if specified conditions are met.
"The vehicle must be a motorcycle or right-hand drive passenger vehicle, be no more than 12 months old and have no more than 500km on the odometer.
"The Australian Government will specify the countries considered to have comparable standards. Of the world's right hand drive countries, Japan and the United Kingdom currently meet the standard. Other countries may be included upon reaching a comparable standard."
Weber characterised the decision as bad for consumers.
"[The government seems] Not concerned that after beefing up Australian consumer law for 40 years, that they are encouraging consumers to go outside [the protection of] these laws for one of their biggest purchases... And go shopping half a world away," he told motoring.com.au.
"They don't comprehend that, even if they look the same, vehicles sold in UK and Japan are quite different than those sold here in terms of equipment and specification," he said.
Weber said the importation of lower specification vehicles had the potential to "degrade the entire marketplace".
"These vehicles arrive and then have a 20-year life in the market with multiple owners. How does this benefit the second, third or fourth owners that may have a vehicle that has limited parts access, no diagnostics, and potential problems with recalls and the like," Weber said.
"This [decision to allow parallel imports] is predicated on a price basis. The fact is purchase price is only part [of the cost]. Service costs and residual value impact the true cost. We think these vehicles will be hammered in the [second-hand] market.
"We would hope that these vehicles are clearly identified as private imports otherwise it has the potential to devalue every new car – at a large cost to the wider economy, he stated.
Legislative changes will be required to clear the way for parallel importing, the FCAI boss stated.
"We will certainly be talking to the other [political] parties to try and block its [the legislation's] passage.
"Paul Fletcher is a new minister. We will be talking to him and the government to make sure they understand the implications of the changes in their entirety," Weber stated.
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"It’s official: Australians will be allowed to bypass car dealers and directly import new and near-new cars directly from Japan and the UK from 2018, following the end of local car manufacturing in 2017."
"It states individuals will be limited to importing right-hand drive vehicles that have travelled 500km or less and are less than 12 months old at the time of application."
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