Ian Field, Chairman of Q Automotive Group, Queensland represented the views of the franchise dealer at the Vehicle Service and Repair Conference. Below are extracts from his presentation at the conference.
“It's been alleged that detrement is occuring because the sharing of repair information is restricted. I want to refute that allegation.
“There is no evidence of consumer detriment, there is no evidence of collusion between dealers and if there is it should be reported to the ACCC. Some industry stakeholders have alleged detriment is caused because repair information is not shared. I will explain why some information is not shared and why that is beneficial to the customers. I will demonstrate why some information can never be free.
“I don't hide from the fact that convenient access to information can be a problem for the non-specialist. Caused not by the information being kept secret, but because of the complexity of modern motor vehicles and the proliferation of makes and models. There are 45 different car marques and 18 different truck marques selling some 340 different models in Australia – current models, not yesterday’s models. No one can specialise in everything and attempting to provide information on all these products is not possible as a one-off request for non-specialist repairer. Let me say that again, it's not possible for a non-specialist to know everything about everything.
“When I go to my doctor, who is a friend of mine, he knows everything about the human body he's got all the information but he still refers me to a specialist if I need an oncologist or even a dentist. You cannot repair everything even if the information is available.
“I have four dealerships but I also represent independent repairers in Queensland, I know that seems to be a contradiction in terms given the document we are all here to talk about, the government issue paper dated July 2011. The forward to that document says: 'some information is not shared in an unrestricted manner'. I agree. Some industry stakeholders, who are not identified, have suggested that restricted access to repairer information may limit the ability of independent repairers to compete with authorised repairers. They go on to say that they have been asked to report on evidence of consumer detriment. So this is about determining whether there is consumer detriment not about whether it's hard to get hold of information.
“Motor dealers have been pitched as the bad guys and independent repairers as the good guys. There is no mention in the issues paper of specialist repairers who, in the real world of modern motor repair, specialise in a particular model or a class of repair. I find this a concern as there are thousands of specialist repairers in Australia and the reason is that it is impossible for any one organisation to be a specialist in everything.
“An authorised repairer – read motor dealer – is expected to be a specialist in the franchise they hold and has to contractually agree with a vehicle manufacturer to invest in facilities, equipment, branding and on-going training. A Ford dealer is a specialist in Ford vehicles and not a specialist in Holden vehicles. As part of their authorised status they have to invest in satellite communications so their technicians receive monthly training by factory technicians in real time. I'm sure they won't want to share that investment with their competitors.
“Most dealers do not attempt to specialise in all types of repair but sub out to specialists who have invested heavily in repairing, for example, diffs. Most dealers don't compete in paint and panel or alternator repairs – all specialist areas. Pose this question to the stakeholders who say there is an information problem that that limits the choice of repairers, how do those specialists do all this if the information is restricted to only the dealer network? Do they steal the information? Do they bribe the authorised dealer to give them the information? How do the thousands of independent specialists survive if the information is not available?
“Or could this be more about non-specialists wanting to be able to service everything without the investment in the information, tools and training. Information is available but it costs money to produce, it costs money to keep up to date, it costs money to disseminate. Workshop repair manuals are available for all makes and models, there are thousands of them but they cost money, up to $500 each.
“If you have the manual does that make you a specialist? You still don't have the specialised equipment to do a crankshaft alignment or an engine pull, the cost of that specialist equipment is so great that even TAFE doen't invest in it to train apprentices.
“Let me state clearly and unequivicably this is not about dealer repairers versus non-dealer repairers, it's about specialisation brought on by the complexity of modern motor vehicles. You cannot be a competant repairer without the information, tools and training all of which is available if you are willing to pay and take a commercial risk that you will get a return on your money.”
He went on to say that as he represents the interests independent repairers in Queensland in his MTAQ role and he could not do this if his position as a dealer was in conflict with this. The provision of 'free and fair information' he argued was unfair on the providers who have invested in that information but great for those who were receiving it. If a non-specialist wants information that information has to be provided and kept up-to-date.
“If this were to become governement policy as a consquence of this review will all specialists and dealers who have paid for this information be compensated? Will government set up and adminsister this free system so that only properly trained technicians with the proper equipment can gain access to this free service? I can see absolutely no reason why government needs to further regulate this industry. The ACCC has wide reaching powers to ensure there is proper competition.
Information is available
“There are three categories of technical information. The first is service information which is available to anyone who wants to pay. It isn't always readily available but this is caused by complexity, not as has been alleged because it is kept secret. If you are a member of MTAQ, we employ a full-time person who has a comprehensive library of data that our members can access by a phone call. The members who use it are predominantly non-specialist repairers. About 75 per cent of the enquires we answer first time, if we don't have the information we phone the VACC call centre who have 12 operators and a much bigger database and for a $10 fee we can get the information for our members. David Purchase of the VACC says they can answer 98 per cent of the enquiries first time, nearly all the rest can be answered after they have researched the information.”
He pointed out there is a cost involved in getting this service. When they asked MTAQ members whether they would pay an extra $50 a year to access the VACC technical helpline directly the majority said no, which suggested to Field that there is not a big problem as others have suggested.
He also discussed security codes for different vehciles systems and stated that it was not in the interests of the Australian community to make this information freely available to anyone who says they are an independent repairer.
“A regular question in my dealerships is from local panel shops who have disconnected the customer's battery and need the start up code. We don't charge for this information because we want to have an ongoing relationship with panel beaters who buy parts from us.”
“I have to take my Jag to a Jaguar specialist to get it serviced. As I employ lots of mechanics it annoys me, from a convenience point of view, that I can't take it to one of my workshops. I take it to a Jag specialist because they have all the proper scan equipment and are connected to Jaguar and therefore completely up-to-date.”
“There is a need for the crash repair industry however to have access to materials and data about the different alloys and metals used in modern manufacturing. These must be available to properly repair damaged vehicles.”
He went on to say that he supported this information being made available to authorised smash repairers through sources such as I-Car.