Malaysia

German expat wins suit against car dealer over defective SUV

Johor Baru sessions court allows compensation claim, rules he be awarded RM50,000

Updated 3 years ago · Published on 08 Feb 2023 1:16PM

German expat wins suit against car dealer over defective SUV
The Johor Baru sessions court has allowed a compensation claim by a German national over a faulty sports utility vehicle he purchased from an authorised car dealer. – Perbadanan Pengurusan Sisa Pepejal dan Pembersihan Awam - SWCorp Facebook pic, February 8, 2023

by Shahrim Tamrin

KUALA LUMPUR – A German expatriate has won a lawsuit after his sports utility vehicle (SUV) experienced several defects within the three-year manufacturer’s warranty and two-year extended warranty period.

The Johor Baru sessions court ruled that Karl-Anton Droxner be awarded with RM50,000 as compensation from authorised car dealer Auto Lumina Sdn Bhd for the hardship, complications, and frustration, as well as insecure feeling while using the Ford Kuga 1.6.

“The plaintiff has made a claim with the amount of RM200,000 as compensation but the court feels that the RM50,000 is sufficient and justified in this case,” judge Lailawati Ali said in her recent ruling.

The court held that the faulty and malfunctioning issues on the part of the SUV only amounted to a breach of warranty for which the owner was entitled to compensation.

For the 13 issues on the vehicle the expatriate named the SUV’s sole distributor Sime Darby Auto Connexion Sdn Bhd as first defendant, the car dealer Auto Lumina as second defendant, and authorised service centre Century Legion Sdn Bhd as third defendant. 

The suit against Sime Darby Connexion and Century Legion was dismissed by the court, with only Auto Lumina held liable.

Droxner had purchased the Ford Kuga for RM156,745.50 from Auto Lumina in Johor Jaya on December 10, 2013. He paid a deposit of RM61,413 with a bank financing RM95,332.50 and settled the loan two years later.

Droxner stressed that the SUV was not of merchantable quality and unfit to be on the road.

Among the first noticeable faulty issues was the inaccurate fuel gauge reading and he had informed the salesman about the matter when the SUV was delivered to him on Boxing Day 2013. 

Between December 2013 and February 23, 2015, the expatriate sent the car twice to the service centre for the free service as stipulated under the manufacturer’s warranty period.

‘Alarming and dangerous situation’

Auto Lumina argued that the German national failed to prove the faulty fuel gauge when the vehicle was delivered to him.

It was also contended that Droxner used the SUV for 425 days without any issues and damage until the anti-lock braking (ABS) system indicator light and other warning lights appeared on the dashboard display on February 23, 2015.

“This period is sufficient for the owner to identify the vehicle is in good and satisfactory condition,” argued Auto Lumina.

Nevertheless, the court found that the issues and defects listed by the expatriate were not seriously disputed by the defendants – except the alleged fuel gauge inaccuracy, which was refuted by Auto Lumina.

“Since the second defendant didn’t call up the right witness, the court accepted as a fact from the testimony of the plaintiff that the motorcar experienced the problem of inaccurate fuel gauge values when he received the motorcar from the second defendant,” the judge ruled.

It was also claimed that nearly three years after it was purchased, the SUV was not able to start due to fork leakages and battery malfunction.

In addition, Droxner highlighted the problems of the ABS warning and other lights constantly blinking on the dashboard display, which caused the Ford Kuga to crawl in heavy traffic.

“The plaintiff was put in an alarming and dangerous situation when the car’s wiper blades collided with each other and flew in the air during heavy rain, and also when the car couldn’t move well and crawled in the traffic,” Lailawati noted.

Vehicle sent to service centre 

The German national claimed that the last faulty issue was on January 19, 2018 when the air conditioning was malfunctioning, along with several warning lights again appearing on the display.

He also asserted that he had to send the SUV to the service centre 11 times to fix the issues, including the safety recalls.

“The plaintiff also had to face the situations when the car was required to be sent to the service centre from time to time for repairs and causing the plaintiff unable to use the motorcar to the (maximum).

“The plaintiff in this case was not lucky with the condition of the motorcar that (has often given him) problems since the purchase,” the judge noted.

It was also found that all of the defendants did not challenge the statements by Droxner regarding his difficulties and inconveniences with the SUV.

“These happened within the first three to five years’ duration, during which the car was purchased by the plaintiff from the second defendant.

“Considering the deficiencies of the motorcar are fundamental defects, the claim by the plaintiff is allowed,” the judge ruled. 

Droxner was represented by Johanan A. Puthucheary, J.W. Ling, and Shamelan Lonen of Nadzarin Kuok Puthucheary & Tan, while Amirul Ashraf of Chiong & Partners appeared on behalf of Auto Lumina. – The Vibes, February 8, 2023

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