Hyundai raises alarm on looming disaster
By Andrew Chesterton · 17 Jul 2026
Hyundai has sounded the alarm about what will happen to customer warranties, and who will hold the liability, when car companies inevitably fail in Australia's increasingly crowded and competitive market.That's the stark warning from Hyundai Australia CEO, Don Romano, who said the industry consensus was that some brands, legacy and newcomer alike, would fail in Australia's cut-throat car market, with the senior executive warning that honouring warranties could then become a question mark for owners."The question is are all of these brands going to survive? And I think the general consensus from every manufacturer is no," Mr Romano says."The question then becomes when they leave, who holds the warranty liability? And I think that's an issue that doesn't get too much press, but I think it's a worry that some of the big dealer groups that are holding onto a number of brands that may or may not be around – and I'm not talking Chinese brands, it could be any brand."I've been involved with brands that have left North America, but they still have the resources in their global business to protect the warranty. I wonder sometimes about some of the new brands – is the government looking at that? Do they realise that if they leave, some of these dealers are going to have to take care of the customers out of their own pocket?What happens to a customer's warranty in Australia appears to largely depend on the infrastructure left behind. When Opel failed in Australia, Holden honoured remaining warranty. Same too for Holden, which was covered by General Motors. Customers of Citroen and, most recently, Peugeot will have their warranties covered by the broader Inchcape Group, which was the importer for both of the French brands.But if no infrastructure remains, then it would appear to be the distributor, and then the dealer group, left holding the liability."I think that's a concern because a lot of those dealer groups own our facilities and represent us, so you know this could have implications beyond just the brands that may leave, but even the stronger brands because they're all tied together," Mr Romano says.It's a thought echoed by the Australian Automotive Dealer Association (AADA), which has today released a response to a major review into Australian Consumer Law and the Franchising Code of Conduct.The wide-ranging review, conducted by Emeritus Professor Jenny Buchan and commissioned by the AADA, identified five key themes, including "a growing disconnect between legal responsibility and operational control in the resolution of manufacturing defect claims, practical shortcomings in the operation of manufacturer indemnification arrangements, uncertainty surrounding the application of key ACL concepts, inefficiencies within existing dispute resolution processes, and limitations in the Franchising Code’s ability to address power imbalances.The review also specifically explored brands exiting the Australian market, and calls for a policy framework that demands OEMs honour warranty, repair, parts and buy-backs for a defined period, lasting as long as the warranty on the last-sold vehicle. It also calls for EV-specific funding for wound-up companies, as well as regulatory approval before an OEM can exit the market.“For most Australians, purchasing a car is the second-largest financial commitment they will make. Consumers have every right to expect a fair, timely and efficient process when faults arise,” says James Voortman, CEO of the AADA.“Multinational manufacturers must take greater responsibility for the products they import in Australia and be active participants in resolving consumer disputes.”