Positive breakthrough in the local automotive market

By · July 19, 2011 · Filed in Uncategorized

18 July 2011: According to reliable sources, the latest unofficial news indicates a long awaited positive breakthrough in the local automotive market amongst FAWOAM, PIAM, MRC and AMLA.

The above parties have agreed on the key points outlined as follows:

  • MRC has been tasked to look into lump sum settlement of e-claims system which has long been disallowed in the market and to take action into the amendment of claims system software providers to ensure on fair & transparent claims processing in the industry. MRC is expected to complete the above with due urgency and priority
  • Claims labour rate of RM30 per hour has been agreed and accepted which includes the application of Thatcham Times system
  • PIAM to initiate a study group inviting FAWOAM, MRC, AMLA & related bodies to look into viability of setting up a Malaysian Repair times system to offer more efficient & effective system for the local industry
  • Spare parts discounts have been agreed for Proton BLM at 15% and the top 6 brands at 25%. PIAM welcomes FAWOAM to jointly review on parts pricing on yearly basis in order to prevent disputes in parts pricing
  • Other Matters: –
  1. PIAM agrees to look into slow approval of claims by insurance companies
  2. PIAM to look into non-compliance of using franchise parts price list for new cars. On a case-to-case basis, PARS workshops who are unable to purchase the parts according to the franchise parts prices listed after agreed trade discount, may submit the original invoice in their claims as evidence for the parts which has been purchased
  3. PIAM to inform AMLA on parts discounts and labour time requirement and necessary compliance
  4. PIAM to look into introduction of National Tow Trucks system and Upgrading of workshops
  5. PIAM request FAWOAM to terminate workshops which has been blacklisted by them

The above will take effect from 1st August 2011 which will be officially announced by FAWOAM & PIAM respectively

With the above issues in place, the industry can now move on with professionalism and transparency. Common issues such as high parts trade discounts of 30% and RM20 labour rates per hour, etc will be things of the past.

Hence, it is without doubt that this latest new development will be most welcomed by all and looks forward to working more closely and together to achieving a more efficient industry as championed by our Malaysian Government in the ETP Program.

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