Mitsubishi responds to BIMTA news release on actions against grey import dealers

Responding to a news release from the British Independent Motor Trade Association (BIMTA) dated October 18th, 2005 relating to action taken by Mitsubishi Motors Corporation (MMC) and alleging that it is symptomatic of "Rip Off Britain", MMC’s UK importer has said, “The current action has nothing to do with "Rip Off Britain" and BIMTA's press release distorts the truth. Mitsubishi has been at the forefront of bringing new car value to UK consumers. Indeed, Mitsubishi vehicles are now not only cheaper in the UK than almost anywhere in Europe, but actually cheaper than they were in the UK five years ago.

The Colt Car Company Ltd (CCC), the authorised distributor of Mitsubishi cars and light comme’cial vehicles in the UK, confirms that MMC has, through its UK lawyers, written to ‘certain businesses’ which import and/or offer for sale Mitsubishi vehicles originating from and intended only for sale outside of the European Economic Area (EEA). MMC has not consented to the importation or sale of these vehicles in the EEA and says this activity therefore infringes the trademark rights of MMC.

The businesses have been asked to cease their infringing activities. Some have agreed to do so and others have declined. In consequence, MMC will need to seek the support of the English courts in enforcing its legitimate rights against those businesses.

Jim Tyrrell, CCC's Managing Director, said: "BIMTA alleges a 20% price differential for L200 pick up trucks sold by the businesses in question. This does not recognise the significant differences between vehicles intended for Thailand and those intended for the UK. Without significant alteration, they do not meet the standards, particularly those relating to vehicle emissions, imposed by the Government on vehicles sold in the UK.

"Customers may be misled about the origins and standards of vehicles which they purchase from non-franchised dealers and we have had complaints from customers in this regard.

Mr Tyrrell adds: "Customers buying an L200 from a Mitsubishi franchised dealer will have the benefit of a three-year, 100,000-mile warranty that applies across Europe. While some businesses may offer additional warranties in the price of a Thai specification vehicle, I do not believe these will be equivalent to that offered by us.

"Customers should also be aware that Thai specification vehicles often will have a different engine, and will therefore require different parts when they need repair. While we carry a large stock of parts for the vehicles sold officially in the UK, we do not do so for those aimed at the Thai market. There could therefore be significant delays in carrying out repair work if the relevant part is not available in this country and has to be sourced from Thailand - this could cause enormous inconvenience for the customer."

Although businesses may try to avoid liability by ensuring that unauthorised imports have a prior registered owner (e.g. in Thailand) or have a limited number of miles on the clock, suggesting that these are used vehicles, the issues are exactly the same in relation to these vehicles.

- Toyota GB has also been affected by ‘grey’ imports of Thai-built vehicles; the latest version of its Hilux pick-up had been imported from Thailand before it officially went on sale in Britain this month.