Submissiontothe

2014ReviewofMotorVehicleStandardsAct1989

FrankstonToyotawelcomestheopportunity toprovideinputtotheAustralianGovernment's

MotorVehiclesStandardsAct(MVSA) review.

OperatingasaToyotadealership,weemploy150peopleandsellanaverageof4200cars peryear.Wealsoprovideverysignificant customersupportpostvehiclesaleincluding the provisionofpartsandservicing.

Sinceourestablishmentin1978wehaveinvestedsignificantlyindealershipinfrastructure, trainingofourpeopleandcommunity initiativesmakingourbusinessasignificanteconomic andsocialcontributortooursurroundingregion.

Theconsiderationoftheremovalofusedandparallelnewvehicleimportrestrictionsaspart oftheMotorVehicleStandards Actreviewisofgreatconcerntoourbusinessandone.that westronglyoppose.

Inparticular, whilewehavenodirectresponsibilitytowardssuchvehicles,manyinthe generalpublicwouldseeourbusinessasthepointofcontactforvehiclesupport.

Whilethesaleandaftersalessupportresponsibility mustresidewiththevehicleimporter,a dealer'sabilitytoofferaftersalessupportwouldbeenormously challenging,andcomes withadditionalcostanddelaytoconsumers including:

•Servicing-Ourtechnicians arenotfamiliarwithoverseasvehicleofferingswhich cancomewithdifferentspecification. Diagnosticinformationanduniquespecial toolsneededtoadequatelyservicevehiclesmaynotbereadilyavailable (plus ToyotaAustraliawillnothaveanyvehicleservicehistoryforoverseassourced models)

•Partssourcing-ToyotaAustraliadoesnotstockpartsofoverseasmodelswhich

canbedifferenttothemodelswepresentlymakeavailable. Thiswillgiverisetolong leadtimestosourcepartsinternationally fromthemarketwherethevehiclewas intendedtobesoldandsubsequentlygenerates additionalcostanddelaytothe customer(whiletheirvehicleisoff-road)

•Recalls-IfToyotaAustraliainitiatesavehiclerecall,theabilityforourbusiness to

supportownersofprivatelyimportedvehicles islimited. Theownerwouldneedto relyontheentitythatimportedsuchvehiclesormaketheirownarrangements(as theirvehiclewillnotbeshownonToyotaAustralia'srecords)

•Techniciantraining-Thecapabilitytoserviceandrepairthesevehiclesmaynot existwithinthedealershipthereforecompromising thecustomerexperience

•Cappedpriceservicing-Toyotapresentlyoffersourcustomerscappedprice servicing suchas5standard servicesfortheCamryat$130eachforthefirstfour yearsor75,000km. Usedcarsandparallelimportsdonothaveaccesstosuch offerings

•Warranty-customers mayexpectourbusiness tomeetwarrantyclaimsontheir

importedvehiclesdespitethefactthatwehavenolegalobligationtomeetthese claims

•Owner'smanual-Theprintedowner'smanual(ifsupplied)inthesevehicleswill mostlikelybeinthelanguageofvehicleorigintherebynotprovidingpotentialfuture owner'swithimportantvehicleoperationalinformationinEnglish

•Fitforpurpose vehicles-AsthesevehicleswerenotdesignedforAustralian conditions theusualexpectationsofdurabilityandreliabilitymaybecompromised resultinginapoorcustomer experience

Notonlywilltheabilitytosupportusedvehiclesandparallelnewvehiclesbe problematic,theincreasedlevelsofcompetitionthroughopeningupthemarketwill placeenormouspressure onourbusinessandpotentiallyputatriskjobswithinthe sector.Wealreadyoperateinahighlycompetitivemarketplace,withAustralia regardedasoneofthemostcompetitiveintheworldfornewvehiclesales.This resultsinexcellentconsumer choice,competitivepricesandveryhighlevelsof customerfocusbothintermsofvehiclessalesandaftersalessupport.

WeurgetheAustralianGovernment toconsider theimpactsofamendingrestrictions onusedcarimportsorallowingparallelnewimports,andtheimpactsthiswould

haveonestablishedandwellrespected businesssuchasmine.

HowardBould

GeneralManager

FrankstonToyota

1-4WellsRoad,frankston,Victori,1,3199,Australia

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