Coronavirus (COVID-19) Impact: Could halt replacement of life-saving Takata airbag parts

KUALA LUMPUR: Following the job losses in car dealerships, a delay in the replacement of potentially damaged Takata airbag parts is feared.

In order to keep their doors open during such sharp downturn times, many dealerships servicing staff as well as mechanics have lost their jobs. Thus, making it difficult for the customer to book a critical repair.

According to the data acquired, out of 4 million cars in Australia, 300,000 need urgent replacement of Takata airbags parts, and 10,000 cars out of 78,000 are ordered to go off the road, and they will be brought back by the automaker.

The ACCC (Australian Competition and Consumer Commission) earlier gave the automakers a deadline of December 2020 to replace or account for all the potentially damaged airbags. However, given the current pandemic scenario, it looks like the deadline won’t be met.

Australian Automotive Dealers Association (AADA) CEO, James Voortman said, “There is no doubt that the Takata airbag recall will be affected by the delays caused by the coronavirus”. He further added, “We would expect the ACCC would take that into account when considering whether an extension to the current Takata airbag replacement deadline is appropriate,”

The AADA that represents almost 50,000 employees across 3500 dealerships in Australia said that car dealers nationwide are allowed to stay open as an essential service. It is mainly because of the parts and service department. However, some dealers have cut their working hours.

Mr. Voortman said, “If dealers have the replacement airbag parts in stock, they can still do this work. For many dealerships, it is business as usual, anyone who needs to bring in a vehicle requiring an airbag replacement should do so,”

The suggestion gaining momentum is to keep workshops, parts department, and pre-delivery operations open. Also, switching to contactless sales inquiries, i.e., over phone and mail, is the need of the hour.

Mr. Vootman also said that AADA has heard that the federal government is considering wage subsidies for all businesses, and this can assist dealers in retaining their staff.