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Auto Industry News – Q3 2017

We review all the major news events in the automotive industry from the third quarter of 2017.

 

Safety and Environment

In what became the first ever compulsory recall for vehicles in Australia, the ACCC intervened to shine the spotlight on cars affected by defective Takata airbags. The recall eventuated amid a rising number of fatalities worldwide attributed to the faulty components, including a local fatality in Sydney.

Emissions scandals continue to plague manufacturers, with Peugeot and Citroen being looked into for their alleged use of ‘cheating’ devices similar to those used by Volkswagen. The companies join Renault and Fiat Chrysler to be looked into, however, they have strongly denied the accusations. Also being accused of unconscionable conduct, Daimler is facing concerns it sold over one million cars with excess emissions.

In a boost for environmentalists, Queensland’s government announced plans to develop the world’s longest electric highway that will promote the use of electric vehicles.

 

Technology

Fuel technology continues to be a major focal point. Volvo has drawn a line in the sand, as the auto maker plans to begin phasing out petrol and diesel in the coming years. This aligns with legislation in France and the UK that will ban said vehicles from 2040, and China planning to soon ban the production of these vehicles, although Australia isn’t expected to follow suit any time soon.

Locally, the nation could be at the forefront of hydrogen fuel technology, with a world first trial set for hydrogen powered vehicles next year. South Australia even became the first Australian state to endorse hydrogen as the next fuel technology.

On a related note, Sydney will play host to integral trials surrounding the future of autonomous vehicles in Australia, while first round results from testing in Victoria suggest infrastructure and technology are currently ill equipped for self-driving vehicles. Abroad however, and vacuum cleaner maker Dyson is eyeing the electric vehicle market, set to take on dedicated manufacturers as soon as 2020.

Other technology developments include:

 

Legal and Regulatory Issues

The government was caught up in a vehicle ‘carbon tax’ controversy, with auto bodies and car makers slamming a rumoured proposal, although the government went on the front foot to deny its prospects.

Elsewhere, the ACCC commenced proceedings against Ford Australia over its ‘faulty’ auto transmissions, however the car maker announced it will contend the accusations. Also facing scrutiny from the ACCC, Holden settled an investigation by announcing the industry’s first vehicle refund and replacement scheme for the first 60 days of vehicle ownership

However, the ACCC saved its biggest salvo for the broader new car industry, detailing a wide range of concerns regarding the way customers’ complaints are dealt with, the sharing of manufacturer data with independent repairers, and real world fuel/emissions tests. The developments could give rise to lemon laws. Naturally, this provoked concern and consternation from the automotive bodies.
Finally, the Federal Court has requested Volkswagen publish changes to vehicle performance on its website and social media arising from the Dieselgate saga.

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