LDV headed to court over T60 and G10 rust issues

LDV Automotive is in hot water with the ACCC and headed to the Federal Court over claims it breached Australian Consumer Law with “misleading representations” about “the durability and suitability” of the T60 ute and G10 van.

According to the national competition and consumer regulator, LDV made misleading representations to consumers that the models were durable, tough and suitable for use in a variety of environments and off-road terrains (T60), only for them to corrode and/or develop rust within five years of being manufactured.

“The propensity to rust, which increased if the vehicles were used in, near or on certain terrains, made the advertised vehicles, including the vehicles in which rust occurred, not suitable for use in, near, or on, the advertised terrains,” the ACCC said.

Adding fuel to the fire is the fact LDV allegedly advertised a 10-year anti-corrosion warranty between April 23, 2019, and August 31, 2020, despite knowing about “prevalent” rust and corrosion issues prior to the campaign.

“A new car is a significant financial purchase, and consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include,” ACCC chairperson Gina Cass-Gottlieb said.

“We allege that despite being aware of the propensity for the vehicles to rust, LDV continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains.

“As a result, we allege that LDV’s conduct is likely to have caused harm to affected consumers, including because the propensity for rust or corrosion lowered the value of their vehicles, and because consumers lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks.”

More than 5000 complaints of corrosion and/or rust were received by LDV between January 2018 and November 2024, a key metric in the ACCC’s quest for “penalties, declarations, consumer redress, costs and other orders”.

In a statement issued to carsales, LDV Automotive Australia general manager Dinesh Chinnappa said he was disappointed the situation had escalated to such a degree and that he was looking forward to defending the allegations.

“For 18 months LDV Australia has been engaged in good faith discussions with the Commission in an attempt to resolve its concerns, and to provide remedies to consumers,” he said.

“It is disappointing this process has ended in these legal proceedings.

“LDV Australia takes its obligations under Australian Consumer Law seriously, and we look forward to defending the ACCC’s allegations in court.”

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au