Holden announces industry-first vehicle refund and replacement scheme

Holden has responded to a consumer watchdog investigation by announcing an industry-first refund and replacement scheme for motorists whose vehicles experience problems in the first 60 days of ownership.

Following an investigation by the Australian Competition and Consumer Commission (ACCC) which found Holden “is likely to have contravened the consumer law” in a number of ways, Holden today announced the sweeping measures, known as the 60 Day Policy.

The ACCC said it received numerous complaints from consumers including allegations Holden refused to repair cars serviced outside its dealer network, or vehicles purchased second-hand. Specific cases and vehicles involved cannot be named for legal reasons.

“Holden acknowledged that it misrepresented to some consumers that it had discretion to decide whether the vehicle owner would be offered a refund, repair or replacement for a car with a manufacturing fault, and that any remedy was a goodwill gesture,” ACCC chairman Rod Sims said.

“Holden has offered an undertaking that goes beyond ensuring compliance with the current consumer guarantee obligations and commits to measures in line with recommended changes to the law. These are great commitments that will have a significant and positive impact for consumers."

For its part, Holden says it cooperated fully and proactively with the ACCC.

“Holden is pleased to announce a range of measures that will better serve Holden customers now and in the future,” Holden said in a statement.

“Holden will soon announce further details of an expanded customer care program for our customers. We want all Holden customers to be assured that they will be looked after in areas such as warranty, roadside assistance and the cost of servicing their vehicle.”

According to Holden’s executive director of customer experience, Peter Jamieson, the new 60-Day Policy was introduced voluntarily.

“Today we are announcing an industry-leading 60-Day Policy to reinforce our commitment to customers. Our dealer teams and the teams supporting our dealers want every customer to get the most out of their Holden vehicle. Our 60-Day Policy says to our customers and dealers – we stand behind our products,” said Jamieson.

“Customers have always been at the heart of Holden, but we do recognise there has been the occasional situation in the past where we could have done better so we have been proactive in reviewing how we respond to customer issues.”

Sims has praised Holden for its actions.

“The Australian Consumer Law includes consumer guarantees that provide remedies for major and minor faults in motor vehicles,” he said. “The consumer guarantees operate separately to the manufacturer’s warranty, and cannot be modified to require consumers to have their vehicles serviced by authorised dealers in order to obtain a remedy.”

Holden’s response follows barely a week after new proceedings emerged against cross-town rival Ford, which has pledged to fight an ongoing war with the ACCC over its PowerShift transmission.