LDV Automotive Australia accused of misrepresenting durability of T60 and G10 models following rust concerns
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.
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