Latest news with #DineshChinnappa
Perth Now
23-04-2025
- Automotive
- Perth Now
'Rust-proof' utes under spotlight amid false ad claims
The local distributor of Chinese-made LDV vehicles is being sued for allegedly misleading consumers about how tough and durable their utes and vans are. LDV Australia portrayed its T60 Max ute and G10 van as "tough", "robust" and "built to stand up to the everyday and more" in advertisements shown for five years. The vehicles were shown driving on unsealed roads, beaches, rivers, dirt or gravel terrain. But the consumer watchdog alleges Australian LDV distributor Ateco did not warn consumers the two models rusted or corroded within five years of manufacture. Complaints about the corrosion and rust began months before Ateco first aired the ads in 2019, the Australian Competition and Consumer Commission said. More than 5000 complaints were received by the company by the time ads ended in November 2024. From 2018 to 2024, LDV's dealerships sold more than 60,000 T60 and G10 vehicle models, generating more than $1.5 billion. Ateco, which trades as LDV Australia, also advertised that the T60 ute could not develop rust or corrosion in the first 10 years of its manufacture, putting a 10-year anti-corrosion warranty on the model between 2019 and 2020, the commission alleged. The roads the models were driving on in the ads fast-tracked rust and corrosion, the commission said. The commission's chairwoman alleged Ateco's advertising - which ran on television, radio and online - might have caused harm to consumers. "Consumers rightfully expect that the vehicle they purchase will live up to the quality and uses that it was advertised to include," Gina Cass-Gottlieb said. "They lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks." LDV Australia said it was disappointed the consumer watchdog had taken the issue to the Federal Court. "For 18 months, LDV Australia has been engaged in good discussions with the commission to resolve its concerns, and to provide remedies to consumers," general manager Dinesh Chinnappa said in a statement. "It is disappointing this process has ended in these legal proceedings ... and we look forward to defending the (commission's) allegations in court." Ateco has imported cars to Australia since 1985 and distributes Chinese-manufactured LDV vehicles through 102 dealerships across the country.
7NEWS
23-04-2025
- Automotive
- 7NEWS
LDV Automotive Australia accused of misrepresenting durability of T60 and G10 models following rust concerns
A popular car company is accused of misleading Australian buyers about the quality of its vehicles after it emerged that thousands of complaints had been made about rust and corrosion. The consumer watchdog alleges Ateco Automotive, which trades as LDV Automotive Australia, promoted LDV-branded T60 utes and G10 vans (excluding the eT60 model) as 'durable and tough, and that they were suitable for use in, near, or on, a variety of environments and off-road terrains'. Between 2019 and 2024, online, TV, radio and social media advertisements portrayed the vehicles on beaches, near lakes and rivers, and on unsealed roads, the Australian Competition and Consumer Commission (ACCC) claims. An example of one allegedly misleading statement included: 'The T60 is up to any challenge you care to take on — work or play, on-road or off... It turns the toughest tracks into a walk in the park.' The ACCC said the rust and corrosion issue, which tended to happen 'within the first five years' of the cars being built, contradicted the sales pitch that the vehicles were 'durable and tough'. It said the problems 'increased' for cars taken off-road and actually used on the same surfaces as those in the promotions. It also alleges that LDV misled buyers when it advertised a 10-year anti-corrosion warranty between 2019 and 2020, saying by that point 'LDV was aware that rust or corrosion issues were prevalent in the T60 and G10 vehicle models'. Thousands of complaints More than 5000 consumer complaints about those exact issues were reported in those two models between 2018 and 2024, the ACCC said. 'We allege that despite being aware of the propensity for the vehicles to rust, LDV continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains,' ACCC chair Gina Cass-Gottlieb said. 'As a result, we allege that LDV's conduct is likely to have caused harm to affected consumers, including because the propensity for rust or corrosion lowered the value of their vehicles, and because consumers lost the opportunity to make an informed decision that may have involved purchasing an alternative vehicle that did not carry the same risks.' The ACCC argues LDV breached Australian consumer law and is seeking 'penalties, declarations, consumer redress, costs and other orders' through proceedings in the Federal Court. LDV Australia's general manager Dinesh Chinnappa said the company had engaged in 'good faith discussions' with the commission for 18 months to resolve concerns and 'provide remedies to consumers'. 'It is disappointing this process has ended in these legal proceedings,' Chinnappa said. 'LDV Australia takes its obligations under Australian consumer law seriously, and we look forward to defending the ACCC's allegations in court.' Ateco is the exclusive importer of LDV-branded vehicles in Australia, and distributes those cars through 102 dealerships throughout Australia. LDV's dealerships sold more than 60,000 T60 and G10 models between 2018 and 2024. Ateco also works with Maserati, Ram and Renault in Australia.
