Honda Australia is facing legal action from the Australian Competition and Consumer Commission (ACCC) for allegedly misleading customers by saying two dealerships had closed when in fact they were still open.
Consumer watchdogs filed a complaint over comments Honda Australia made to customers regarding two former authorized Honda dealerships: Tynan Motors Pty Ltd (Tynan) in New South Wales and Brighton Automotive Holdings Pty Ltd (Astoria) in Victoria.
It claims that between January and June 2021, Honda Australia misrepresented to clients that these two dealerships would either close or had already done so and would no longer provide servicing for Honda automobiles.
Even though the franchise agreements at these locations had been terminated as a result of Honda Australia’s restructuring, the companies were still functioning as independent dealerships and continued to provide maintenance for automobiles, including Hondas.
Customers of these two dealerships were allegedly advised by Honda via phone calls, text messages, and emails that they needed to go to an another Honda dealership for service.
Your prior service dealer has closed, so please use this link to locate your nearby Honda Service Center, according to one automated text message released by the ACCC. [link]
According to ACCC Commissioner Liza Carver, Honda allegedly denied customers the chance to make an educated decision about their options for maintaining their vehicles in favor of a dealership that may have been more inconvenient or expensive for them.
By falsely reporting that Astoria and Tynan businesses had closed or would soon close, we also contend Honda damaged those companies’ reputations and may have discouraged consumers from servicing their Honda vehicles there.
Honda Australia has issued the following statement:
The investigation into this matter by the ACCC has received Honda Australia’s cooperation. We are currently examining the most recent submission by the ACCC and are unable to comment further at this time on particular situations, specifics pertaining to the claims made, or specific dealers.
As part of its restructuring and transition to an agency sales model, the business terminated the franchise agreements for 36 of its dealerships with effect from June 30, 2021.
Both Astoria and Tynan had been offering Honda cars for about 50 years.
Brighton Automotive Holdings claims that on March 23, 2020, without any previous warning, it was informed that its agreement will expire on June 30, 2021 in a submission to the Senate Inquiry investigating the interactions between automakers and dealers late in 2020.
Furthermore, it claimed that the loss the dealer endured was unfairly devalued by Honda and Deloitte’s compensation approach.
The ACCC has highlighted the implementation of the Motor Vehicle Service and Repair Information Sharing Scheme, which goes into force on July 1, 2022, in addition to announcing the legal actions against Honda.
This program mandates that OEM service and repair information be made accessible to Australian independent repairers for a reasonable market price.
In This Article...
Honda is leaving Australia, right?
When questioned about the possibility of Honda leaving Australia like Holden did after a protracted period of poor sales, Mr. Collins responded, “Honda will not leave Australia. We have a strategy, we’re devoted to it, and we have no intention of leaving Australia.
Are Honda vehicles still available in Australia?
Honda Australia only sold 17,562 brand-new cars in total in 2021, a significant drop from the slightly over 40,000 cars it sold five years prior and a performance that left it below Mercedes-Benz and relative newcomer MG.
Why is Honda ceasing operations?
Reuters, 22 April 2018 – Due to chip shortages and COVID-19 lockdowns, Honda Motor Co (7267. T) plans to reduce output on two lines of one of its domestic facilities by around 50% in early May, the company announced on Thursday.
Is Honda leaving the auto industry?
In a conversation with Automotive News, Mibe acknowledged that his vision lays out a difficult course. However, the new boss insisted that change was necessary in order to survive in this trying new era. Mibe succinctly stated, “Honda will not be an automotive company anymore.”
Why are Honda dealerships in Australia closing down?
Due to Honda Australia’s transition to an agency sales model, ONE of the most successful and long-running Honda dealerships in Australia has been closed and declared surplus to requirements, leaving the company without a future in Honda sales or service as of mid-2021.
Honda makes its automobiles in Australia, where?
It serves as the center of the newest automotive empire in the world, one that sends an increasing number of vehicles, including Honda vehicles, to Australia. By the end of July, 96,603 Thai-built vehicles had been sold in Australia this year alone, up from 82,656 in 2009.
In 1998, Honda Australia became the first firm to import passenger automobiles from Thailand, but it took another 12 years for the Japanese manufacturer to feel confident enough in the quality of Thai-built goods to make a statement about them.
However, over 80% of Honda cars sold in Australia today are built in Thailand. The City, Jazz, Civic sedan, CR-V, and Accord are among them. The Accord Euro, Legend, and Odyssey are still produced in Japan, while the Civic hatch is built in the UK.
Not only Honda, but “more and more manufacturers are coming here to make automobiles,” according to business spokesman Mark Higgins. They consist of the majority of pick-up trucks marketed in Australia, the Mazda2, and – very soon – more small cars from Suzuki and Ford, led by the upcoming Fiesta.
With 778 automobiles, the Thai-Honda adventure officially began in 1998. Exports rose considerably to 14,071 in 2005 thanks to the Free Trade Agreement between Australia and Thailand and the relocation of jazz production from Japan to Bangkok.
Honda shipments from Thailand to Australia were 51,424 in 2007, however they sharply decreased amid the global financial crisis. They are anticipated to number 40,197 this year. However, that amount still represents a negligible part of the Thai Honda factory’s 240,000 yearly production capacity.
About 5000 Thai workers and 80 Japanese managers are employed at the plant, which has an area of 851,800 square meters. They work two to three shifts every day, receive two weeks of annual leave, and Honda pays for their food.
Although Thailand’s oppressively hot and humid heat is tempered in the body and frame plant by opening up a complete wall to prevailing winds rather than employing air conditioning in an effort to save electricity, working conditions are still not ideal.
Makoto Morii, vice-president of Honda Automotive Thailand Corporation, claims that the facility is only 50% automated, compared to Japanese plants that are 90% automated. “Because the pay is lower here, we use more hand welding. We can hire more people here rather of spending money on expensive machinery,” he says.
Additionally, he defends the degree of human participation and has high regard for his Thai employees. The level of mechanical proficiency among Thais and Japanese is comparable. He claims that compared to robots, people are more flexible.
He acknowledges, though, that complete automation will be necessary for the company to begin producing more complex hybrid vehicles. He acknowledges that we don’t have a plan for expanding the factory.
Is there a future for Honda in Australia?
We are aware that this is a novel idea for Australia and that it might take some getting used to. However, this new approach strives to give our customers a consistent, delightful brand experience as well as price certainty.
We are confident that it makes the process easier and more transparent while easing some of the stress and pressure that can be related to buying a new car.
What does this mean for Honda car dealerships across Australia?
In order to appropriately size the company for long-term sustainability and future growth, we have altered our operations and reorganized our sales and service network.
For the Honda network, a more straightforward and adaptable operational model has been developed, including centralized marketing and stock management, with the goal of providing customers with certainty, transparency, and good value.
Although the Honda network now has a somewhat different appearance, it still has a wide national footprint that enables consumers to obtain Honda products and continue to get their Honda car serviced with the same level of convenience.
Will there be fewer Honda dealerships?
With 60 Honda Centers serving provincial and rural areas and 30 Honda Centers spread across metropolitan areas, the new Honda network has 90 locations throughout Australia.
How do I know if my local Honda dealership has been impacted by the changes?
If Honda had your current and accurate contact information, they would have alerted you if there had been a change in your service location.
Why is Honda changing the way it does business?
To position the brand for a sustainable future and pave the path for the next generation of Honda cars, Honda is revolutionizing the new car buying experience in Australia at a time of major upheaval across the automotive industry.
What Honda vehicles will be released in 2022?
- Honda CR-V Special Edition for 2022.
- Honda CR-V Special Edition for 2022. View Vehicle Information. For Price, Call.
- Honda Accord Sport SE Sedan 2022.
- Honda Accord Sport SE Sedan 2022. View Vehicle Information.
- Honda Pilot EX-L from 2022.
- Honda Pilot EX-L 2022. View Vehicle Information.
- Honda Pilot Sport, 2022.
- Honda Pilot Sport, 2022. View Vehicle Information.
In Australia, where can I purchase a Honda?
- Choose a location SETTING: Change.
- Locate a Honda Center.
- Take it for a spin. Pick a Honda and click “Add/Change Model.” To select a model, click. your information Title *
- monetary options
- Request a brochure. Pick a Honda and click “Add/Change Model.” To select a model, click. your information Title *
- Construct your Honda.
- Request for service booking.
Why don’t new Hondas exist?
Honda was forced to reduce vehicle manufacturing in 2021 as a result of the chip shortage. But by April 2021, all of its North American manufacturing facilities had returned to normal operation. Despite these production challenges, the majority of Honda’s truck and SUV models recently achieved sales records.
Honda has to make some sacrifices, just like other automakers, in order to keep consistent vehicle production throughout the supply chain. There are still a lot of Honda parts in short supply. Therefore, the manufacturer is tackling each issue relating to the supply of parts and the production of vehicles individually.