Australia sues SAIC's local distributor Ateco

SYDNEY: Australia's antitrust watchdog said on Wednesday that it had sued Ateco Automotive, Chinese carmaker SAIC Motor's local distributor, over the company's misleading advertisements about the durability of certain LDV car models.

Ateco Automotive, through LDV Australia Automotive, has been the country's exclusive distributor of SAIC's LDV-branded vehicles since 2015.

The Australian Competition and Consumer Commission (ACCC) has alleged that some LDV-branded vehicles tended to rust or corrode within five years of manufacturing despite LDV Australia's advertisements showing them as tough and durable in a variety of rugged environments and off-road terrains.

"We allege that despite being aware of the propensity for the vehicles to rust, LDV (Australia) continued to make representations for a number of years that the T60 and G10 vehicles were durable and suitable for use in a variety of terrains," ACCC Chair Gina Cass-Gottlieb said.

LDV Australia said in a statement it had engaged in good faith discussions with the regulator for 18 months to resolve the matter and remediate its customers.

However, it neither denied nor accepted the ACCC's claims but said it would defend itself in court.

The ACCC said it is seeking penalties, consumer redress and other orders over the misleading ads, which were aired on television and radio, as well as LDV Australia's website and social media handles on Instagram and Facebook.

SAIC Motor did not immediately respond to a Reuters request for comment.