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Code of Conduct agreed for used car recalls

9 June 2005

Code of Conduct agreed for used car recalls

The new vehicle industry has agreed on a voluntary Code of Conduct for the administration of safety-related recalls on used vehicles imported by third parties. Under the new code new vehicle franchise holders will work with the vehicle manufacturers to monitor safety-related recall campaigns that may affect vehicles in New Zealand, and will take responsibility for co-ordinating the repair of used cars affected by safety recall campaigns, irrespective of who imported them.

“This is a significant commitment by the new vehicle industry to the interests of vehicle owners affected by recall campaigns, particularly as it relates to vehicles for which the local new vehicle industry has no legal responsibility,” said Perry Kerr, CEO of the Motor Industry Association.

“Under the Code of Conduct, the respective new vehicle distributor will either carry out the recall campaign, or advise Land Transport New Zealand of the affected vehicles so that the owners can be contacted and advised that they can have their vehicle rectified at the franchised dealer.”

In cases where full costs are not covered by the vehicle’s manufacturer the owners will be liable, but can seek full reimbursement from the vehicle’s importer if the importer was a commercial motor vehicle importer and vendor. In cases where the owner refuses to have the vehicle repaired, the franchise holder reserves the right to notify LTNZ that a safety-related defect has not been rectified on the vehicle.

The MIA stresses that the responsibility to monitor safety recall campaigns on vehicles up to seven years old is the minimum standard. “In individual circumstances, franchise holders may choose to extend such campaigns to vehicles older than this,” said Mr. Kerr.

Key motoring groups such as the Motor Trade Association, Independent Motor Vehicle Dealers Association and the New Zealand Automobile Association have come out strongly in support of the MIA’s initiative.

ENDS

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