RMI fires salvo in new war of words
Monday, 04 October 2004
By JAMES DALLAS THE RMI has attacked the SMMT's New Car Code of Practice for being of no benefit to car buyers.

The RMI lashed out the Office of Fair Trading granted full approval to the SMMT's scheme after the RMI and its partner, the Scottish Motor Trade Association, abandoned their own code for dealers – CarWise – blaming lack of cooperation from the OFT. Matthew Carrington, RMI chief executive, claimed the OFT's acceptance of the SMMT's initiative was “welcome news for the car manufacturing industry but does little to satisfy the consumer's interests”. “It exposes the shortcomings of the OFT's code process that it has still not provided any tangible benefits for the consumer,” he said. Carrington argued that it was dealers, not manufacturers, that established relationships with car buyers. “The only real interaction between consumer and manufacturer is when problems occur during warranty and even then it is via the franchised dealer. It is with the garage and not the manufacturer where the relationship exists,” Carrington said. But the SMMT hit back. “Taking a swipe at the SMMT is not productive for customer care in the industry,” said a spokesman. “We've raised the bar. We feel the RMI should be representing its members and raising standards of customer care.” SMMT chief executive Christopher Macgowan said: “We are proud of this landmark achievement. Car makers have demonstrated that there is a genuine will to improve customer care and we hope this serves as an example to others.” The SMMT admitted that the “core” of its scheme was “protecting the new car warranty” but claimed that it offered real customer benefits and could not operate in isolation from retailers who would have to abide by the code when selling manufacturers' warranties. The New Car Code of Practice also sets standards for product quality, availability of replacement parts and advertising and complaints handling. Penny Boys, OFT executive director, insisted that the code would help consumers. “This is good news for car buyers and for SMMT members. The OFT codes scheme is rigorous and demands commitment to high standards of customer service. The OFT approved codes logo means customers know they are dealing with a reliable supplier,” she claimed. The OFT denied it had not cooperated with the RMI but said that when the CarWise scheme was withdrawn, it had not met the standard required for Stage Two approval, whereby the code sponsor must “prove its code lives up to the initial promise it made” and “demonstrate the code is being effectively implemented by its members and that consumer disputes can be resolved”.
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