In a significant case for the motor vehicle industry, Daewoo Automotive

Australia Pty Limited, trading as Daewoo Automotive New Zealand, today

pleaded guilty to breaching the Fair Trading Act for selling vehicles as

new when they were manufactured two years earlier. Judge Clapham fined

the company $35,000 plus costs in the Manukau District Court.

A Commerce Commission investigation revealed that 52 "new" Daewoo Nubira

vehicles sold through the company's nationwide roadshows in 1999 were in

fact manufactured in 1997, and had been sitting in storage in Korea.

The Commission alleged that Daewoo deliberately failed to disclose to

prospective purchasers the year of manufacture of the vehicles and

misled a number of customers who believed they were buying a new

vehicle.

Commission Chair John Belgrave said that the issues raised in this case

had key implications for the motor vehicle industry.

"Currently a motor vehicle dealer is not legally required to disclose

'year of manufacture' details, however, in this case, the claims made by

Daewoo were incorrect and misleading. The vehicles cannot possibly have

been said to be new", he said.

In sentencing, Judge Clapham said that there was legislative interest in

defining 'new' for the purpose of motor vehicles and that a requirement

to disclose the manufacture date of vehicles would do away with any

confusion.

"The defendant's conduct interferes with market forces. It deprives

consumers of the relevant date of manufacture and also impacts on those

traders who disclose all details", Judge Clapham said.

Media contact: Deborah Battell, Director, Fair Trading Branch

Phone work (04) 924 3760, mobile 029 924 3760

Jackie Maitland, Communications Manager

Phone work (04) 924 3708, mobile 029 924 3708