Insurance Company Cull a Cruel Christmas Present for Smash Repairers
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MELBOURNE – Dec 20, 2012: VACC represents independent smash repairers in Victoria through its Body Repair Division (BRD). It is concerned that the latest move by insurance companies, a consolidation process of the smash repairer network, will tip the independent industry over the edge.
“This is not an argument about vehicle safety or consumer interests. This is a commercially driven exercise that impacts on small businesses and their employees. This is nothing more than a smoke screen by insurance companies to dump a number of smash repairers from their books,” VACC Executive Director, David Purchase, said.
“We are concerned many smash repairers will have their contracts terminated, leading to the drying up of their supply line. This could result in many smash repairers going out of business.
“This also comes at a time when motorists have little choice about who repairs their vehicle and where, and coincides with major insurers owning their own repair facilities. The accumulative effect on the independent smash repair sector will be devastating.
“Ultimately, we are concerned about local communities. On average, independent smash repairers are ‘mum and dad’ owned businesses, employing 8 people. Depending on the numbers culled, hundreds of people in could lose their jobs. This is not just occurring in Victoria; it’s happening across Australia and we expect our interstate industry colleagues, and the national body repair association, will also be concerned about this,” Mr Purchase said.
VACC will monitor the outcome of the consolidation process and pursue
the issue by the following:
“VACC is calling for an urgent review of the situation. Our next action may have to be a request to the Victorian Government to consider an assistance package for small automotive smash repair businesses forced out of the industry,” Mr Purchase said.