John Deere queries ACCC call for agricultural machinery sector shake-up
There’s resistance to the consumer watchdog’s call for greater competition in ag machinery servicing and repairs from a key player.
A consumer watchdog call for greater competition in the agricultural machinery servicing and repair sectors has received pushback from a key player.
The Australian Competition and Consumer Commission this week released a detailed study into the farm machinery marketplace, following years of fair trading issues in regional areas.
John Deere Australia and New Zealand managing director Luke Chandler said his company supported independent repairs, but not if that meant modifying the software systems in machinery.
“We’ve always supported our customers’ rights to repair their machines and we continue to do that. We make a lot of tools available for them to repair their own machines,” he told The Weekly Times.
“What we don’t support is the right to modify the embedded code in some of those machines.
The reasons we do that is that it brings up safety risks, there are environmental risks, and there are performance risks as well.
“That has always been our stance and we will continue to work with the ACCC and our customers and dealers,” he said.
Released earlier this week, ACCC report detailed how modern tractors and harvesters use complex computerised systems that involve embedded software and specific tools and parts.
While this technology has increased productivity, the ACCC noted, it has also meant that access to this software, tools and parts is needed to repair the machinery.
These are often held or controlled by manufacturers, limiting the ability of independent repairers to do the work.
ACCC deputy chairman Mick Keogh said the report finds that the restricted access to software tools, technical information, and service manuals and parts held by manufacturers is limiting competition in repair markets.
It also finds that warranties can limit competition by discouraging the use of independent repairers.
“Competition in after-sales markets would be improved if independent repairers had access to software, tools and parts on fair and reasonable commercial terms,” Mr Keogh said.
“This is an important issue that runs across a number of industries, both in Australia and overseas.
The ACCC has recommended that agricultural machinery be considered for future inclusion in the motor vehicle service and repair information sharing scheme.
The report also recommends that agricultural machinery be included in any broader ‘right to repair’ scheme introduced in Australia.
The ACCC also found that many warranties have significant limitations, including their short duration which can often be limited to one or two years.
“The survey we conducted showed that purchasers often don’t understand the terms of warranties when they buy agricultural machinery, which involves a significant investment,” Mr Keogh said.
In February 2020, the ACCC released a discussion paper focusing on concerns about manufacturer warranties and the servicing and repair of agricultural machinery, along with an online survey seeking farmers’ feedback about their experiences.
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