Merger Of Leading Motoring Organisations To Go Ahead

Members of both the Motor Trade Association (MTA) and the Motor Vehicle Dealers Institute (MVDI) voted resoundingly in favour of a proposal to merge the two organisations today.

The merger, which is subject to a final Special General Meeting of MVDI members in June, follows the passing of the Motor Vehicle Sales Act, which brings to an end the statutory role of the MVDI. The new combined association, which could have as many as 6,000 members, will become New Zealand’s foremost motor industry organisation. The merged organisation will be known as the Motor Trade Association (Inc.) and will continue to be based out of the MTA’s National Office in Wellington.

“We are pleased that members have approved the merger,” said Stephen Matthews, CEO of MTA. “They obviously recognise the need to create a stronger voice, to raise operational standards and to achieve greater economies of scale. The merge will benefit not only members of both organisations, but members of the public as well.”

MTA’s consumer Contact Centre, 0508 MTA MEDE8, currently provides MTA members’ customers with an opportunity to address any issues that arise when carrying out business with a member. This service will be extended to cover all dealer members once the act comes into effect, so the public can be confident that any MTA member they deal with is a reputable business that operates to the highest ethical standards.

Furthermore, all dealer members will be required to go through a quality assessment process by the middle of next year. While not all MVDI members will choose to belong to MTA, longer term, the association expects to attract only dealers with superior standards and a reputation for fair dealing.

Both MTA and MVDI recognise that consumers will want to identify reputable dealers and the merged organisation will ensure that members of the public are able to purchase a vehicle with peace of mind.

Although the act will not come into effect until later this year, from 1 July 2003, all current MVDI members will have the opportunity to join the MTA. The MTA will provide the majority of the functions of MVDI. Those functions relating to the Fidelity Fund and support to the Licensing Board will be provided under contract by the MTA until such time as they are no longer required under the new Act.

“The support of members on this crucial issue is most encouraging,” MVDI Executive Director Steve Downes said. “Until 1975 dealer interests were represented by MTA (then the RMTA). This merger effectively sees a return to that situation and will provide a stronger, more unified organisation that is better placed operationally and financially to deliver its members and the public the services they expect.”

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