No lemonade for carmaker's lemons: PKR Youth leader wants 'lemon law' in fast lane

When life gives you lemons, the old saying goes, make lemonade. But when a car sheds its axle, a PKR Youth leader emphasised that consumers need more than a refreshing drink.

Federal Territory PKR vice-chief Jeremy Ang called on the government to expedite the enactment of a clear, comprehensive, and effective automotive “lemon law” to protect consumers.

In January, Domestic Trade and Cost of Living Minister Armizan Ali said the proposed law aims to strengthen dispute resolution mechanisms and provide a clear framework for compensation claims, particularly involving the purchase of new vehicles.

Ang’s call follows an incident involving a Chery Omoda 5, in which the rear axle came off while the vehicle was being driven. The incident prompted the Road Transport Department (RTD) to suspend new registrations of the model pending a safety investigation.

Ang said owners must continue paying their hire-purchase instalments even when their vehicles are sent for inspection or repairs.

“At the same time, they may have to bear the cost of alternative transportation and contend with disruptions to their daily routines,” he said.

Proposed measures

Ang proposed four key areas of protection under the law, beginning with the right to a buyback, vehicle replacement, or refund.

“Grant consumers the right to a buyback, vehicle replacement, or appropriate refund when a vehicle has a serious safety defect or recurring problems that remain unresolved after several repair attempts within a reasonable period.

“This mechanism should also be coordinated with financing institutions to ensure that outstanding financing balances, vehicle ownership, and refunds to consumers are settled clearly and fairly,” he added.

Ang also called for an increase in the Tribunal for Consumer Claims Malaysia’s jurisdiction to enable it to handle disputes involving the purchase price of new vehicles.

“Review and raise the RM50,000 claim limit of the Tribunal for Consumer Claims Malaysia to enable it to hear claims involving the actual value of a new vehicle,” he said.

Additionally, he proposed temporary financing assistance for owners whose vehicles remain unusable for extended periods due to safety investigations, recalls, or repairs involving serious defects.

Ang called for a framework involving the government, relevant authorities and financial institutions to allow hire-purchase payments to be deferred or restructured without unreasonable penalties in such circumstances.

Another proposed safeguard is having replacement vehicles or mobility allowances.

“Require manufacturers or dealers to provide replacement vehicles, alternative transportation, or reasonable mobility allowances throughout the inspection and repair period when a vehicle cannot be used due to a confirmed safety defect.

“Malaysians, including young people and families who depend on their vehicles to earn a living and meet their daily needs, should not have to shoulder the entire financial burden arising from product defects or quality-control failures beyond their control.

“Safety, mobility, and consumer rights must be protected through clear, firm, and effective legislation, while ensuring that manufacturers and dealers bear their fair share of responsibility,” he added.

Loose axle

Following the RTD’s decision, Chery Malaysia issued a recall for the Omoda 5 C and H variants, offering free inspections and replacement of affected components.

It added that owners of any Omoda 5 variant could also visit Chery showrooms, where technicians were available to assist.

“Chery Auto Malaysia would like to apologise for the inconvenience caused to all our customers. We remain committed to addressing this matter responsibly and ensuring customer safety and confidence,” it said in a statement.

According to popular automotive website Paul Tan, a similar incident involving the same model occurred two years ago, prompting Chery Malaysia to recall 600 units.

“The carmaker identified a miscalibrated welding tip as the root cause, and said it had identified 60 units produced on Aug 15, 2023, that had the affected parts,” it said.

For Chery, the latest episode has proved an unwelcome turn of events as the Chinese car manufacturer continues to carve out a niche in Malaysia with its budget-friendly prices and tech-loaded features.

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