The Victorian Automobile Chamber of Commerce (VACC) says the future of independent smash repairers in Australia is in doubt.
Hundreds of small automotive smash repair businesses have been informed, by their insurance company partners, that they are set to lose their preferred repairer status.
VACC is concerned a consolidation process will result in a cull of insurer’s preferred repairers, leading to substantial job losses. They say the move comes at a time when insurance owned repair shops are taking away significant market share from independent smash repairers.
VACC represents independent smash repairers in Victoria through its Body Repair Division (BRD). It is concerned that the latest move by insurance companies, a consolidation process of the smash repairer network, will tip the independent industry over the edge.
“This is not an argument about vehicle safety or consumer interests. This is a commercially driven exercise that impacts on small businesses and their employees. This is nothing more than a smoke screen by insurance companies to dump a number of smash repairers from their books,” says David Purchase, VACC executive director.
“We are concerned many smash repairers will have their contracts terminated, leading to the drying up of their supply line. This could result in many smash repairers going out of business.
“This also comes at a time when motorists have little choice about who repairs their vehicle and where, and coincides with major insurers owning their own repair facilities. The accumulative effect on the independent smash repair sector will be devastating.
“Ultimately, we are concerned about local communities. On average, independent smash repairers are ‘mum and dad’ owned businesses, employing 8 people. Depending on the numbers culled, hundreds of people in could lose their jobs. This is not just occurring in Victoria; it’s happening across Australia and we expect our interstate industry colleagues, and the national body repair association, will also be concerned about this,” Mr Purchase said.
VACC will monitor the outcome of the consolidation process and pursue the issue by the following:
– Organise a meeting with Minister for Innovation, Services and Small Business, Minster for Tourism and Major Events, Louise Asher
– Obtain legal opinions on the contracts being offered to smash repairers
– Contact insurance companies to convey its concerns.
“VACC is calling for an urgent review of the situation. Our next action may have to be a request to the Victorian Government to consider an assistance package for small automotive smash repair businesses forced out of the industry,” says Purchase.
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