[News] Kommersant Russian car dealers fear bankruptcies

Russian automakers and dealers are afraid of bankruptcy due to the obligation to pay large penalties for delaying car repairs, Kommersant writes with reference to the Association of European Businesses (AEB). According to the publication, the business faced a shortage of components caused by sanctions and logistics failures.

The situation may lead to the bankruptcy of manufacturers and dealers, and then consumers simply will not be able to restore their rights, the AEB believes.

In early autumn, the Ministry of Economy sent to the Ministry of Industry and Trade and Rospotrebnadzor a proposal from the AEB to introduce a moratorium for nine months on the application of certain provisions of the law “On Protection of Consumer Rights”. In the letter, the association warned of high risks of losses and bankruptcies of automakers due to lawsuits related to non-compliance with the terms of warranty repairs.

By law, the automaker or dealer has 45 days to repair. After that, the buyer has the right to terminate the sales contract, replace the goods or reduce the price. At the same time, each day of delay from the repair schedule costs dealers and manufacturers 1% of the cost of goods (365% per annum).

The AEB said that in the event of a one-year delay in repairing a car worth 3.5 million rubles, the penalty will be 6.4 million rubles, and taking into account the fine – 10.5 million rubles. They incur similar costs if the machine was under repair for more than 30 days in each warranty year due to the elimination of various deficiencies.

Rospotrebnadzor opposed the moratorium. The department believes that dealers and automakers will abuse it and delay any repairs, hiding behind such a measure.

Aleksey Gulyaev, Deputy General Director for Avilon Service, noted that complex elements, such as electronic components or parts for body repairs, are waiting for several months.

Vyacheslav Zubarev, President of the Russian Automobile Dealers Association, expressed the opinion that the problem cannot be solved by fines. He stressed that the bankruptcy of the dealer will lead to the fact that the consumer will be left alone with a broken car and no compensation.

At the end of the summer, it became known that Ingosstrakh began to help with the supply of spare parts for cars, using alternative channels in connection with the departure of European manufacturers. For this, a pool of reliable suppliers was selected, and new supply chains were developed.