Putting the squeeze on lemons

'Lemons' are no respecter of prestige or quality brands. Even the most quality-conscious manufacturer can have the occasional 'lemon' slip through the cracks (pardon the tortured metaphor).

Typified by a high number of defects from the factory and spending long periods in workshops, 'lemons' are a curse for both the consumer and the manufacturer.

They often attract a lot of 'bad press' for the manufacturer, detracting from the car's otherwise good reputation for durability and reliability.

Thankfully, the incidence of these 'Monday or Friday' cars has reduced with higher levels of automation and constantly improving quality assurance strategies -- but they're still with us.

Victoria's newly appointed Consumer Affairs Minister, Tony Robinson, is planning to introduce new legislation through the state parliament, to address cars that are under-performing in respect of 'down-time' and general serviceability.

It's anticipated that the new legislation will cast a broader net than just automotive 'lemons', but for the present that's the first priority.

"We are starting with motor vehicles because they are often the second biggest purchase Victorians make, after their home" Mr Robinson said.

Manufacturers are only required to cover a car during the term of the warranty, but there is no requirement to replace a car altogether, under that warranty.

In one example cited by Consumer Affairs Victoria, an engine fitted to replace a defective engine was itself defective -- and not covered for failure after the vehicle's warranty expired.

From the manufacturer's viewpoint, once an engine is replaced, that typically wipes out whatever profit there was to be had from selling the car new. That's why car companies are loath to undertake drastic action such as this. Replacing an entire car is even more objectionable.

Therefore, consumers still experience difficulty with car companies accepting responsibility for a car's myriad defects and voluntarily replacing the vehicle with a new one.

The legislation is expected to cover vehicles beset by persistent defects, even outside the warranty period, provided they can be traced back to manufacturing or design issues and don't arise through normal 'wear and tear'.

Although Consumer Affairs Victoria has reported some known cases, the extent of the problem is not fully apparent. Now, the government department is trying to quantify the magnitude of the 'lemon' crop in Victoria, by collating written responses from the public.

Stakeholders can post their submissions to:
Lemon Laws Consultation
Consumer Policy Branch
Consumer Affairs Victoria
GPO Box 123A
MELBOURNE VIC 3001

Additional information can be obtained by ringing 1300 55 81 81 or visiting www.consumer.vic.gov.au

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