Toyota dealers target parallel imports review

Toyota dealers from around the nation are the most prominent lobby group to make submissions to the Department of Infrastructure for its review of the Motor Vehicles Standards Act (MVSA).

As many as 28 of Toyota's 200+ Australian dealers have submitted feedback so far, outlining common objections to any prospect the MVSA will be amended to lift parallel import restrictions.

The government department is conducting the review following recommendations by the Productivity Commission last year that the MVSA be amended to allow consumers easier access to grey imports.

To date, 220 submissions have been uploaded to the department's website, so the submissions from Toyota dealers amount to a small percentage of the total, but are in addition to a separate submission from Toyota Australia itself and the FCAI (Federal Chamber of Automotive Industries).

Each of the dealer submissions offers bullet points in the same format, using the same wording. Objections raised related to servicing, parts sourcing, recalls, technician training, capped price servicing, warranty, owner's manual and 'fit for purpose' vehicles.

Here is how the objections were mounted, taken from one of the submissions:

We contacted Toyota Australia for comment, but were told that the spokesperson could not discuss any communications between Toyota, its dealer council and individual dealers. That leaves unanswered our questions as to who authorised the campaign, why it was deemed necessary for the dealers to conduct this campaign – separate and distinct from the Toyota and FCAI submissions – and why the dealer council should choose not to make just the one submission on behalf of all dealers.

It's not unusual for groups with vested interests to lobby government, but it begs the question of whether Toyota's dealer council has considered the New Zealand experience, where dealers have "embraced" grey imports that often require servicing and parts from franchise dealers.

When motoring.com.au checked with the ACCC (Australian Competition and Consumer Commission) earlier this week, we were advised by Meg Macfarlan, Director, Media, that the ACCC is solidly in favour of amendments to the MVSA, and takes the view that there are advantages for businesses getting on board – including franchise dealers.

"An individual dealer could refuse to service a vehicle imported other than through the dealer approved channel (as they can now)," Ms Macfarlan noted in an email." However, we understand that in NZ the dealers have embraced the opportunity to service such vehicles.

"It should also be noted that if competing dealers agreed not to service such vehicles, this would be illegal Under the Competition and Consumer Act."