Cost of car parts

Press, 2 December 1985, Page 16

Cost of car parts

Sir, — The media revealed on Monday that a headlight unit for a Pulsar cost over $5OO. A price of $l2O ex factory was inflated as various fingers got into the pie and the last firm to handle it got over a $lOO mark-up. I once thought that the A.A. was a motorists union, protecting members, but never found much sign of it. The big insurance companies should import such items direct. The present system is nothing but a racket, and middle-men add vast sums to the price of many imports for simply passing items through warehouses and stores, sometimes without even handling them. — Yours, etc., A. R. BATEY. November 13, 1985.

[Mr J. A. Strachan, general manager of the Automobile Association (Canterbury), replies: “In 1977, at the urging of the A.A. and other interested organisations, the Government set up a Commission of Inquiry into spare parts pricing. Particularly looked at were restrictions on the sourcing of parts, the costly mark-up chain, the tax structure, and the wide variations in prices. Unfortunately the Commission’s report has achieved hardly any change in industry practices or Government disinterest. Although the report made a number of recommendations which might have benefited the consumer, none have been effectively implemented. I am sure that your correspondent will welcome the news that on November 27 the N.Z. Automobile Association Council gave approval for the employment of a consumer research officer. A-A. Canterbury supported this move because it gives further recognition to our wish to be more actively involved in the consumer protection role of motoring with an allied research capacity. The job specification for the position is such that this new appointee will have a complementary role to the work already undertaken by our association in investigating the complaints made to us by members.”]