Action highlighting owner issues with T60 ute and G10 van has NZ operation’s interest.

CORROSION challenges for a China-made utility subject of a court action across the Tasman were acknowledged by the NZ distributor months ago.

Australia’s consumer watchdog is alleging the T60 one-tonne utility and another LDV product, the G10 van, are less durable than advertising has suggested and have “a propensity to rust or corrode within five years of being manufactured.”

The Australian Competition and Consumer Commission (ACCC) has now taken the make to federal court.

It’s a high stakes issue. Understanding by some within the NZ motor industry is that, under Australian consumer protection legislation, a producer of goods deemed defective can be made to buy them back.

In this instance, with more than 5000 vehicles subject to complaint, there’s conjecture this could become a $20 million headache for the make, it’s been suggested.

LDV distribution arrangements in New Zealand and Australia are with different entities, but the countries seem to often accept common products.

In New Zealand, LDV is represented by Inchcape, a multinational automotive distributor with numerous brands globally. That’s only been since late 2023. Before then it was in the hands of Great Lake Motor Distributors.

In Australia Ateco Automotive runs LDV Automotive Australia. Ateco is also active in NZ, but with other marques; BYD, Jeep, Alfa Romeo and RAM included.

Inchcape has been guarded in comment but has acknowledged it is keeping a watch on is going on in Australia.

ACCC’s argument is that LDV made “misleading representations” to consumers about the “durability and suitability” of certain vehicle models in breach of Australian consumer law.

It said these misrepresentations were made between April 23, 2019 and November 30, 2024.

LDV allegedly did this by showing off the ute and van in its marketing materials driving on unsealed roads, beaches and near bodies of water.

Inference was that “models with T60 and G10 in their names (excluding the eT60) were durable and tough, and that they were suitable for use in, near, or on, a variety of environments and off-road terrains,” the ACCC said in a recent release.

The issue of corrosion in respect to LDV product was raised with Inchcape’s senior local representatives when the NZ operation showed media a new T60 derivative, the Max Plus, last December. It also announced a more comprehensive warranty cover.

At that time, prepared comment was relayed by the then head of brand marketing for Inchcape.

This said the factory was aware of previously raised concerns about LDV vehicles here, notably in respect to susceptibility to rust and corrosion.

“We have received sporadic reports from customers sharing concerns about quality of vehicles and we’re working with these customers to support them.”

LDV is a sub-brand of the China’s SAIC Motor Corporation, which also makes MG product. SAIC was aware of specific concerns, MotoringNZ was told in December.

A LDV NZ senior manager said then that “LDV is committed to continuing to evolve and enhance their vehicles and this includes throughout a vehicle’s lifecycle, including with the introduction of a new model year.

“The new LDV T60 Max … is no exception and benefits from continued improvements LDV has implemented throughout the production process.”

LDV was committed to providing its customers with exceptional experiences and was “here to support any customer should they have a concern.”

In wake of the announcement of court action, LDV NZ issued another statement attributed to general manager Kym Mellow.

“LDV NZ is aware of the legal proceedings initiated by the ACCC against Ateco Automotive in Australia, concerning representations made about certain LDV models.

“As this matter relates to the Australian market, we’re not in a position to comment.

“LDV NZ remains committed to supporting our customers, and anyone with concerns about their vehicle is encouraged to contact their local LDV retailer.”

The quality of some steel used in China-made vehicles has become a well-known point of discussion with consumers.

The Max Plus launched in NZ with a warranty of seven years/200,000km, up from five years/130,000km for previous models. In January, this cover was extended to all new LDV vehicles.

In Australia LDV dealerships sold more than 60,000 T60 and G10 vehicle models between 2018 and 2024. ACCC claims that, during this period, LDV received more than 5000 consumer complaints for rust or corrosion in those models.

It argues LDV vehicles, including those in which rust or corrosion occurred, were not as durable and tough as advertising suggested they were.

The ACCC said the risk of rust only increased if the vehicles were used “in, near, or on, the advertised terrains” — making them unsuitable for these terrains.