Important Message about Grey Imports
WaveRunners not purchased through an authorised Yamaha dealer network are referred to as “Grey Imports”.
The increasing strength of our currency opens the door for opportunists to take advantage of favourable import pricing. This reflects in an increasing flow of consumers challenging the Yamaha dealer network to compete.
Yamaha Motor Corporation produces different skis for different 'global' markets based on operating conditions, rules and regulations, and the quality of important operating items such as fuel. To operate a ski in the 'wrong market' may lead to a violation of local laws, limited service and support plus potentially impaired reliability or mechanical failure.
As mentioned in our bulletin dated, 29th September 2009, we have requested your co-operation in retrieving primary and/or hull identification numbers of suspected grey import units, and any details of the importer with photographic images where possible. This evidence is then submitted to Yamaha Motor Corporation, (YMC - Japan), who contact Yamaha Motor United States, (YMUS) to subsequently pursue the offending dealer. Once a dealer has been established as the perpetrator, legalities regarding their franchise agreement will be
enforced.
The following section contains some detailed information which can be used to deter potential buyers of grey imports. It details the issues associated with buying from the ‘grey market’ and the advantages of buying from an authorised Yamaha dealer network.
The position of Yamaha Motor Australia/New Zealand (YMA/NZ).
- YMA/NZ has no legal right to stop individuals importing product.
- YMA/NZ is obligated by law to record the details of consumers purchasing Yamaha products, through its dealer network, to be able to inform them of any product recalls. This extends to a safety aspect of protecting the consumers.
Warranty
- YMA/NZ has no responsibility to cover any warranty associated with grey import skis. This remains the responsibility of the ‘grey importer’ or supplier.
Each sale is a contract between the seller and the consumer. So if the seller breaches the contact by providing goods that do not meet a statutory warranty, or condition, it is their responsibility to provide a remedy.
Factory Recalls & Importer Obligation
- YMA/NZ, as a wholesaler, with a retail dealer network, is only responsible for the goods it sells.
If a consumer in Australia wants to buy a product from outside YMA/NZ and its dealer network, and something goes wrong, their recourse is through their grey importer/supplier, or whoever they bought the product from. This is the risk the consumers run, however it is "highly unlikely" that the importer/supplier, outside of the YMA/NZ network, will know of a recall, if or when it occurs. To not have a factory recall could endanger lives and the implications multiply if ’grey import’ skis are used for hire and reward.
There is also an obligation by the importer to be responsible for ‘Public and Product Liability Insurance’. The importer of a product is deemed the manufacturer of the product for Product Liability Insurance purposes. The reason for this is that the legal jurisdiction is limited by our boarders. YMA/NZ has a “contract” with YMC, (a contract allows cross boarder agreements and are enforceable in multiple jurisdictions), which allows YMA to be reimbursed by the actual manufacturer, (YMC) who can subsequently claim on their own insurer.
It is “highly unlikely” that an importer, outside of the YMA/NZ dealer network, has such Public and Product Liability Insurance, (as YMC does not ‘cover’ these displaced units in the wrong market), or the ability to pass this through to the exporting dealer, or actual manufacturer, (YMC).
In the event of a claim, it is “highly unlikely” that the importer/supplier would have the financial backing, or support, for any claim, (even though remotely successful in the courts) and a ‘pay out’ would be improbable as they would simply bankrupt themselves to evade their monetary obligation.
This is consistent with information supplied by the Australian Competition & Consumer Commission (ACCC).
Who is responsible for product recalls in Australia?
Voluntary safety-related recalls are the responsibility of the supplier. The Minister for Competition Policy and Consumer Affairs (the Australian Government's consumer affairs spokesman) does have the power to order a compulsory recall of a product if it will or may cause injury to a person and where it appears that the supplier has not taken satisfactory action to prevent the goods from causing injury.
Laws & Regulations
Products that arrive via the official YMA/NZ channels comply with all of the required laws and regulations for the country or region. It is highly likely that products imported from other countries and regions will not be legal to operate.
Spare Parts
YMA/NZ are only required to support the products that we import. As product specifications vary between country and region it becomes the responsibility of the grey importer/supplier to source and provide any spare parts required.
Resale Value
Products supplied outside of manufacture’s distribution channels are subject to a lower resale value. There will also be no trade in value on a genuine Yamaha WaveRunner model, as they will not be accepted by the Yamaha dealer network. (See details on page 3).
Hand-over
Correct operation of a ski is crucial to the operator’s safety. By purchasing through a YMA/NZ dealer, consumers can be assured there is a trained staff who can advise and answer questions as to the correct operation of the ski.
How can the YMA/NZ dealer network assist?
- Many purchasers of grey imports will rely on the YMA/NZ dealer network for after sales support. If you, as a dealer provide this you will only "fuel" the situation and send a message to current and potential grey import consumers that Yamaha will support them. Support includes:
- Assembly of crated product.
- Pre-delivery.
- Supply of trailer.
- Registrations.
- Servicing/repairs.
- Spare parts.
- Taking a grey import as a trade-in.
If you choose to offer support on a grey import, please do not complain to YMA/NZ when one, or many, arrive in your locality.
- If a potential consumer "plays off" a grey import against a unit in your dealership, please do not accept their verbal pricing. Ask to see a written quote from the importer and send it to your local Yamaha Dealer Support Staff. By doing this it will give us a greater understanding of who is providing grey imports and at what price.
Documented evidence, with serial numbers, is “crucial” to resisting the import of “grey” units.
Information to assist you when confronted by a customer
Let the customer know imported skis have:
- No warranty.
- No recalls.
- May not comply with Australian/New Zealand laws and regulations.
- Have limited spare parts back-up.
- Lower resale value.
- No national dealer support by trained and qualified personnel.
Also, be aware that warranties offered on grey imports may not be to the same standard as Yamaha’s genuine warranty and serious consideration should be given to the conditions of these warranties and the subsequent inconvenience and financial penalties to the customer in the event of a claim.
Ask these customers:
- How long has the grey importer/supplier been in business?
- Will they be around when you require their assistance?
- Does the importer/supplier have the ability to support any claim through the legal system?
- Do they have a national network of dealers who can give service and support?
- Are you prepared to lose money on the resale of a grey import over a genuine unit?
- What will it cost you should the ski fail in any way?
- Are you prepared to endanger yourself, and other riders because the unit potentially missed a factory recall?
Warm Regards,
The WaveRunner Team.
Yamaha Motor Australia
www.yamaha-motor.com.au
www.waverunner-fan.com
Tel: +61 (07) 3906 7000
Fax: +61 (07) 3906 7099
