Dealers are being left responsible for increasingly complex vehicle faults while manufacturers control the software, technical information and training needed to resolve them, industry chiefs are warning.
Warranty Solutions Group (WSG) is calling for a debate over whether responsibility under the Consumer Rights Act should more closely reflect where the technical knowledge and control required to diagnose and repair a vehicle sit.
The call does not alter dealers’ existing legal obligations. Under the current Consumer Rights Act 2015, the supplying trader remains the consumer’s contractual counterparty when a car fails to meet the required standards.
However, WSG argues that the growing dependence on manufacturer-controlled software and technical support is exposing dealers to consequences they have limited power to prevent.
Liability sits with the seller
Modern vehicles combine mechanical components with software, electronic control systems, connectivity, sensors and Advanced Driver Assistance Systems. Electric vehicles add complex batteries, power electronics and associated control systems to that diagnostic challenge.
A problem that appears to originate in one component may be caused by another system that requires a manufacturer software update.
Despite this complexity, a dealer may be required to provide a repair or replacement within a reasonable time and without causing the customer significant inconvenience, potentially leading to a price reduction or the customer’s final right to reject the vehicle.
WSG chief executive John Colinswood said: “Modern vehicles have fundamentally changed the relationship between the dealer and manufacturer, but the way responsibility is allocated when something goes wrong hasn’t necessarily changed with them.
“A dealer can be responsible for resolving a customer’s problem while relying on somebody else for the software, technical information, training or manufacturer support needed to fix it.
“If the retailer doesn’t control the technology required to resolve a fault, we need to ask whether it is reasonable for all of the exposure to sit with the dealer. This isn’t about weakening consumer protection or shifting responsibility away from reputable retailers. It’s about making sure responsibility reflects where the knowledge and control actually sit.”
The concerns emerged during two WSG Consumer Rights Act webinars involving representatives from the Institute of the Motor Industry (IMI), National Franchised Dealers Association (NFDA) and independent technical specialists.
IMI president Professor Jim Saker, who wrote for AM recently on this issue, added: “Fundamentally, responsibility should follow control. If a fault originates within manufacturer software, or if a software update is required before a fault can be resolved, where does responsibility actually sit? Is that the responsibility of the retailer? Or should responsibility sit with the manufacturer that controls the software?”
He said differences in manufacturer training and technical support could leave some dealer networks more exposed than others, noting that, “some manufacturers invest heavily in technical training, academy programmes and ongoing support. Others are still developing that capability. If dealerships haven’t received the necessary training or technical information, they are placed in an extremely difficult position.”
Fault finding can take weeks
Another challenge is the assumption that diagnostic equipment will immediately identify the cause of every fault.
ProTech Academy managing director Amy-Jane Marsden said: “People often assume that you can simply plug a vehicle into a diagnostic machine, and it will immediately tell you what’s wrong. Unfortunately, it isn’t that simple.
“One of the biggest challenges we now face is intermittent faults. These don’t always appear every time the vehicle is driven or enters the workshop and can be triggered by very specific driving conditions.
“Sometimes they won’t appear during a diagnostic check at all. The only way of identifying them may be by analysing live vehicle data over a period of time, which means diagnosing a fault can sometimes take days or even weeks before the technician is confident they have identified the root cause.”
This can make it harder for dealers to demonstrate that they have been given a reasonable opportunity to investigate and repair a vehicle, particularly when progress depends on manufacturer intervention or replacement component availability.
WSG wants future debate to consider the complete chain of responsibility rather than treating every dispute solely as a matter between the dealer and customer.
Colinswood continued: “If we’re going to have a serious discussion about how the Consumer Rights Act operates in the modern motor industry, it can’t simply be a conversation about the dealer and the customer anymore.
“We need to look at the complete chain of responsibility: who has the technical knowledge, who controls the software, who provides the training and information, and whether the retailer has genuinely been given a reasonable opportunity to diagnose and repair the vehicle.
“Modern vehicles have fundamentally changed. The framework around resolving disputes needs to recognise that reality while continuing to provide consumers with the protection and confidence they rightly expect.”
WSG has launched a two-part webinar series examining software-related faults, diagnostic complexity, technician skills, manufacturer support and the practical application of the Consumer Rights Act.
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