The Australian Competition and Consumer Commission (ACCC) has instituted proceedings against LDV Automotive Australia for allegations of rust and corrosion in some of its vehicles.
The consumer watchdog alleges LDV made “misleading representations to consumers” that its T60 ute and G10 van were “durable and tough [and] suitable for use in, near, or on, a variety of environments and off-road terrains”.
It allegedly did this by showing off the ute and van in its marketing materials driving on unsealed roads, beaches and near bodies of water.
“The ACCC alleges the relevant T60 and G10 vehicle models had a propensity to develop rust or corrosion within the first five years from the date of manufacture, and therefore the advertised LDV vehicles, including those in which rust or corrosion occurred, were not durable and tough,” said the consumer watchdog.
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“The ACCC also alleges that in advertising a 10-year anti-corrosion warranty between 23 April 2019 and 31 August 2020, LDV made representations to consumers that the relevant T60 vehicle models did not have a material risk of developing rust or corrosion in the first 10 years of manufacture.
“The ACCC alleges that these representations were false or misleading due to the propensity for those vehicles to develop rust or corrosion.”
The watchdog says it received more than 5000 consumer complaints concerning rust or corrosion between January 2018 and November 2024, usually via LDV dealerships.
It alleges that by April 2019, distributor Ateco Automotive – trading as LDV Automotive Australia – was aware of the rust and corrosion issues in the T60 and G10, yet still subsequently made representations about their durability.
The ACCC is seeking “penalties, declarations, consumer redress, costs and other orders”.
“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,” said ACCC chair Gina Cass-Gottlieb.
“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.”
LDV Automotive Australia has acknowledged the ACCC’s announcement, but expressed its disappointment.
“For 18 months LDV Australia has been engaged in good faith discussions with the Commission in an attempt to resolve its concerns, and to provide remedies to consumers. It is disappointing this process has ended in these legal proceedings,” said LDV Australia general manager Dinesh Chinnappa.
“LDV Australia takes its obligations under Australian Consumer Law seriously, and we look forward to defending the ACCC’s allegations in court.”
Ateco has imported cars to Australia since 1985, and previously distributed auto brands including Kia and Chery.
In addition to distributing LDV vehicles, sold through 102 dealerships across the country, it currently also handles the Maserati, Ram and Renault brands in Australia.
