Published17 Dec 2002
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