Future tech a new hurdle for parallel imports

The Kiwis face an uncertain motoring future, says Tony Weber, the Chief Executive of the Federal Chamber of Automotive Industries (FCAI).

Parallel imports will not necessarily be compatible with whatever V2V infrastructure is established in New Zealand for safe motoring in the future, Weber has told journalists during the announcement of VFACTS results for 2015.

It's yet another debating point from the FCAI in the interminable argument about parallel importation, despite that argument largely being won, now that the government has officially declared it will not accept the Harper Review's recommendation in favour of parallel importation.

"Regarding the importation of used cars, we welcome the government's decision in November that it would not support the proposal to allow the mass importation of second-hand vehicles," Weber said.

"This decision has been met by criticism from some commentators. These commentators say that used imports have reduced the price of second-hand cars in New Zealand, particularly in the luxury end of the market.

"While you can always find isolated examples, examination of the New Zealand market is informative. As evidenced by the extensive independent research conducted by both Glass's Information Service and Redbook, new and used vehicles in New Zealand are typically dearer than in Australia, when compared like for like.

"This is an interesting outcome, given the comparison does not include the value of consumer protections available now to buyers in the Australian new and used motor vehicle market.

"As the FCAI has long advocated, our arguments around 'fit for purpose' vehicles and consumer risk apply to both used and so-called 'new' imports. I say 'so-called' because the reality is these vehicles will also be second-hand cars – with most, if not all, of the problems and complexities that the government has recognised that the used car imports."

Weber noted that cars sold in Australia are subject to consumer protection laws and can be recalled should they prove to be unfit for purpose in whatever way. He further cited our demanding road network, fuel quality and lifestyle choices as supporting factors.

And in the future, with Vehicle to Vehicle (V2V) systems reliant on transmitting frequencies specific to individual markets, parallel imports in a country like New Zealand may not be able to communicate with traffic control systems and other vehicles.

"The government must be aware of the impact personal imports would have on Co-operative Intelligent Transport Systems," Weber observed.

"These systems will transform the roads of advanced economies of the world. They have the potential to significantly improve road safety in Australia and reduce congestion on our roads to make the daily commute a safer, easier and more environmentally friendly experience.

"Co-operative Intelligent Transport systems operate in particular bandwidths, which differ between countries. Introducing vehicles made for another country's bandwidth and transport systems may not work, and may even cause significant interruptions in our local systems.

"The question becomes: does Australia want to gain all the benefits of Co-operative Intelligent Transport Systems along with other first-world nations, or not?"