Peter Stevens Motorcycles’ collapse leaves customers in limbo

The failure of a major Australian business earlier this week goes far beyond just one company. And it could spell disaster.

The looming collapse of an Australian motorcycle giant is a direct result of falling consumer confidence amid a cost of living crisis.

News that dealer giant Peter Stevens Motorcycles fell into voluntary administration rocked the motorcycle industry this week. But it’s bigger than that, representing a warning shot for the economy as a whole.

Motorcycle sales in Australia have declined steadily in recent years, dropping from 123,530 annual sales in 2021, to 94,224 last year.

Federal Chamber of Automotive Industries chief executive Tony Weber said “motorcycles are often a discretionary purchase, and in the current environment of high living costs and interest rates, many Australians are understandably more cautious with their spending”.

“While there is a slight softening across all categories in the wake of current economic conditions, we expect to see enthusiasm among Australian riders to return as conditions stabilise and maybe ease.”

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We’ve heard that before.

He said in 2024 that “as Australians manage tighter finances, recreational products are often the first to be affected”, and in 2023 that “recreational products are often the first items removed from household budgets”.

There are similar warning signs in the sports car market.

Ford’s Mustang has recorded sales growth.

While a new Ford Mustang has injected life into the affordable end of the performance car market, sales of every other car in the class – cars like the Mazda MX-5 and Toyota GR86 – have dropped by 10 to 50 per cent.

Sales of sports cars priced over $90,000 have dropped by 11 per cent for the year to date, and more expensive models have dropped by 12.6 per cent.

While people might not have a lot of confidence in purchasing a new motorcycle, folks who have already bought bikes from 15 Peter Stevens showrooms should feel confident they will be supported.

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The fate of warranties and consumer rights hangs in the balance as Peter Stevens Motorcycles enter administration.

The bust is expected to affect the jobs of about 400 staff members. However, the question remains: What protections exist for customers who paid for extended warranties or are waiting for warranty repairs?

While the administration process unfolds, experts say customers still have legal avenues to pursue warranty support under Australian law.

James Voortman, chief executive of the Australian Automotive Dealer Association, notes that customers can take comfort in the protections provided under the Australian Consumer Law.

“Under the Australian Consumer Law (ACL), the dealer and the manufacturer have a shared obligation to remedy consumer guarantees and warranty issues that arise as a result of a manufacturing defect," he said.

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Major Aussie motorcycle giant Peter Stevens has landed in voluntary administration. Picture: Google Maps

He stressed that these Consumer Guarantees are statutory law and cannot be contracted out of, meaning they remain in place regardless of a dealership’s financial situation.

Voortman also clarified that customers are not without options, even if the retailer cannot fulfil warranty obligations during administration.

“In a case where the retailer is no longer operating because of a dealership closure, the customer will still have recourse through the manufacturer and potentially other dealerships within the network will take on warranty and ACL work,” he said.

2025 Harley-Davidson Softail. Picture: Supplied

While Peter Stevens Motorcycles is still trading under administration, its future remains uncertain.

According to the Herald Sun, several interested parties have contacted administrators KordaMentha requesting more financial information about taking over the retail business.

The financial state of the 55-year-old family business will be further revealed at the first creditors’ meeting, which is expected early next week.

Sources said liquidation was unlikely at this early stage and that a sale, partial sale or restructure were all options.

However, staff are believed to have received a four-week notice regarding the likely closure of the Peter Stevens businesses.

2025 Harley-Davidson Softail. Picture: Supplied

In the meantime, Peter Stevens Motorcycle is urging consumers with concerns about existing warranties “to contact their local store with any inquiries”.

Customers can also contact the Australian Competition and Consumer Commission (ACCC) or their local fair trading office if they believe their rights are not being upheld.

Originally published as Peter Stevens Motorcycles’ collapse leaves customers in limbo