Hatchback costs higher than luxury cars

The Nissan Micra is even more expensive to maintain than a Toyota LandCruiser. Source: Supplied

THE Australian Automobile Association has warned that not all fixed-price servicing deals are created equal as figures show some budget-priced hatchbacks can cost more to maintain than a luxury car.

Seven of the top 10 selling brands now offer capped-priced servicing after Toyota introduced it in 2008. More than a dozen rivals have followed.

But in many cases the capped pricing runs out just before expensive routine maintenance begins, or doesn't extend as far as the warranty period.

Some brands require customers to take the vehicle into the dealership twice a year to make up for discounted prices.

In the most dramatic example of the differences that can be found - a $13,990 Nissan Micra hatchback costs $1584 to service over three years, more than 50 per cent dearer than it costs for regular check-ups on a Volkswagen Golf diesel ($876).

The Micra is even more expensive to maintain than a Toyota LandCruiser heavy-duty 4WD ($1260).

Comparing like with like, the new Nissan Pulsar costs $1641 to service, more than twice as much as a Toyota Corolla ($780).

The cheapest cars to maintain over three years are the Hyundai i20 ($567), Holden Barina ($740), Mitsubishi Mirage ($750) and Toyota Yaris ($780).

However, Hyundai's capped price servicing runs out two years before its five-year warranty ends, Holden requires customers to visit every nine months, and Toyota wants to inspect the car every six months.

Mitsubishi, which was second to market with fixed price servicing locally, was once the cheapest of the lot but increased prices across its range late last year.

Its servicing offer, too, runs out before the warranty ends.

Other anomalies: most diesel cars are consistently dearer to service than their petrol-powered equivalents. But in some cases the maintenance costs of diesel cars are cheaper in the initial service period, then rise sharply as the vehicle gets older.

Capped price servicing was introduced to take the guesswork out of car running costs and stop some rogue operators from over-charging.

Figures from accounting firm Deloittes show that the workshop and parts departments account for approximately half of a dealership's profit.

With slim margins on new vehicles as prices have fallen, dealers have used their service bays to make up some of the shortfall.

Before capped-priced servicing was introduced, prices varied markedly even among dealers representing the same car brand.

The AAA says it welcomes fixed price servicing but its endorsement comes with a warning.

"Capped price servicing does provide a greater level of transparency but people must read the fine print,'' Australian Automobile Association Executive Director Andrew McKellar said.

"Not all brands offer the same conditions or service period which means you may not be comparing apples with apples,'' he said.

"Do your homework and examine all the details such as how many services you get at that fixed rate and also how often the service needs to be undertaken.''

Given that fixed price servicing has taken some of the cream out of dealer profits, the AAA says motorists should be even more wary of upselling.

"Even under a fixed price service plan, owners still need to remain on their guard with some dealers trying to upsell to customers on work that isn't needed,'' McKellar said.

"Steer clear of unnecessary service suggestions from the dealer that might go over and above what is in the capped price special, such as a fuel clean, petrol additives or air conditioning decontamination.''

The AAA also reminds motorists that they are not obliged to take their car to a dealership for routine maintenance.

"A reputable independent mechanic may still offer a cheaper service on your new vehicle than the manufacturer's capped price deal,'' McKellar said.

"A log-book service can be undertaken by any licenced mechanic without compromising a warranty from the manufacturer, so don't be afraid to shop around."

This reporter is on Twitter: @JoshuaDowling

Spanner in the works

Nissan Micra
Price: $13,990
Three years' servicing: $1584
Visits to dealer: Six

Volkswagen Golf TDI
Price: $36,490
Three years' servicing: $876
Visits to dealer: Three

Toyota LandCruiser
Price: $78,990
Three years' servicing: $1260
Visits to dealer: Six

Cheapest cars to service

Hyundai i20
Price: $13,990
Three years' servicing: $567
Visits to dealer: Three

Holden Barina
Price: $15,990
Three years' servicing: $740
Visits to dealer: Four
 

Mitsubishi Mirage
Price: $12,990
Three years' servicing: $750
Visits to dealer: Three

Toyota Yaris
Price: $14,990
Three years' servicing: $780
Visits to dealer: Six

View the original article here

Halal error costs Macca's $676,000

McDonald's is set to pay out $676,000 after a Detroit restaurant allegedly claimed its food was halal. Picture: Luke Marsden Source: News Limited

A JUDGE on Wednesday finalised a US$700,000 ($676,000) settlement between McDonald's Corp. and members of Michigan's Muslim community over claims a suburban Detroit restaurant falsely advertised its food as prepared according to Islamic law.

Ahmed Ahmed, the Dearborn Heights man who represents plaintiffs in the class-action suit, claims he bought a chicken sandwich in September 2011 at the restaurant but found it wasn't halal. Islam forbids consumption of pork, and God's name must be invoked before an animal providing meat for consumption is slaughtered.

The McDonald's restaurant chain and one of its franchise owners agreed in January to the tentative settlement that would be shared by Mr Ahmed, as well as a Muslim-run Detroit health clinic, the Arab American National Museum in Dearborn and lawyers.

The two sides met Wednesday for final approval before Wayne County Circuit Judge Kathleen Macdonald, who has overseen the case and refereed objections by outside groups since a preliminary deal was announced in January.

The settlement was originally set to be finalised March 1, but Macdonald extended the public comment period after pressure from Dearborn lawyer Majed Moughni, who criticised the class-action settlement on Facebook and was temporarily barred from communicating publicly about the case.

Mr Ahmed's portion of the settlement is considered an "incentive award" and represents his work on the case, his attorneys say.

"As a firm, we've borne the burden of litigating this case for over 19 months, and have paid a steep price in time and money to do so," Kassem Dakhlallah, an attorney whose firm represents Mr Ahmed and the class, told The Associated Press in an email. "We are happy that we are able to finalise this case and get the settlement funds paid to the Huda Clinic to be used for medical care for the community, and to the Arab American National Museum to be used to allow our young ones to continue their educations after high school."

Ms Macdonald said she was "proud to preside over" the long case and resolution reached by both sides.

The lawsuit technically covered anyone who bought the halal-advertised products between September 2005 and January from the restaurant and another McDonald's in the city with a different owner. The other location wasn't a defendant or a focus of the investigation.

Mr Dakhlallah has said he was approached by Mr Ahmed, and they conducted an investigation. A letter sent to McDonald's and the restaurant franchisee, Finley's Management, by Mr Dakhlallah's firm said Mr Ahmed had "confirmed from a source familiar with the inventory" that the restaurant had sold non-halal food "on many occasions."

In the settlement notice, Finley's Management said it "has a carefully designed system for preparing and serving halal such that halal chicken products are labeled, stored, refrigerated, and cooked in halal-only areas." The company added it trains its employees on preparing halal food and "requires strict adherence to the process."

McDonald's attorney Thomas McNeill said the investigations and negotiations proved that if a problem arose, "it was isolated and rare."

Mr Dakhlallah said giving money to the charities is the best outcome, since most people wouldn't have kept their receipts, making "identifying class members who have valid claims nearly impossible."

Mr Moughni argues that Mr Dakhlallah and his colleagues could have made greater attempts to find those who were harmed and, failing that, identified more relevant organisations, such as Dearborn's public schools. He said the clinic is several miles away from the restaurant and the museum has nothing to do with halal food.

Macdonald disagreed, calling the charities "appropriate recipients," but Mr Moughni said he's considering an appeal.

"We think it's wrong," he said. "It's unfair for the class members."

There are only two McDonald's in the United States that sell halal products and both are in Dearborn, which has one of the nation's largest Arab and Muslim communities. Overall, the Detroit area is home to about 150,000 Muslims of many ethnicities.
 

View the original article here

Halal error costs Macca's $676,000

McDonald's is set to pay out $676,000 after a Detroit restaurant allegedly claimed its food was halal. Picture: Luke Marsden Source: News Limited

A JUDGE on Wednesday finalised a US$700,000 ($676,000) settlement between McDonald's Corp. and members of Michigan's Muslim community over claims a suburban Detroit restaurant falsely advertised its food as prepared according to Islamic law.

Ahmed Ahmed, the Dearborn Heights man who represents plaintiffs in the class-action suit, claims he bought a chicken sandwich in September 2011 at the restaurant but found it wasn't halal. Islam forbids consumption of pork, and God's name must be invoked before an animal providing meat for consumption is slaughtered.

The McDonald's restaurant chain and one of its franchise owners agreed in January to the tentative settlement that would be shared by Mr Ahmed, as well as a Muslim-run Detroit health clinic, the Arab American National Museum in Dearborn and lawyers.

The two sides met Wednesday for final approval before Wayne County Circuit Judge Kathleen Macdonald, who has overseen the case and refereed objections by outside groups since a preliminary deal was announced in January.

The settlement was originally set to be finalised March 1, but Macdonald extended the public comment period after pressure from Dearborn lawyer Majed Moughni, who criticised the class-action settlement on Facebook and was temporarily barred from communicating publicly about the case.

Mr Ahmed's portion of the settlement is considered an "incentive award" and represents his work on the case, his attorneys say.

"As a firm, we've borne the burden of litigating this case for over 19 months, and have paid a steep price in time and money to do so," Kassem Dakhlallah, an attorney whose firm represents Mr Ahmed and the class, told The Associated Press in an email. "We are happy that we are able to finalise this case and get the settlement funds paid to the Huda Clinic to be used for medical care for the community, and to the Arab American National Museum to be used to allow our young ones to continue their educations after high school."

Ms Macdonald said she was "proud to preside over" the long case and resolution reached by both sides.

The lawsuit technically covered anyone who bought the halal-advertised products between September 2005 and January from the restaurant and another McDonald's in the city with a different owner. The other location wasn't a defendant or a focus of the investigation.

Mr Dakhlallah has said he was approached by Mr Ahmed, and they conducted an investigation. A letter sent to McDonald's and the restaurant franchisee, Finley's Management, by Mr Dakhlallah's firm said Mr Ahmed had "confirmed from a source familiar with the inventory" that the restaurant had sold non-halal food "on many occasions."

In the settlement notice, Finley's Management said it "has a carefully designed system for preparing and serving halal such that halal chicken products are labeled, stored, refrigerated, and cooked in halal-only areas." The company added it trains its employees on preparing halal food and "requires strict adherence to the process."

McDonald's attorney Thomas McNeill said the investigations and negotiations proved that if a problem arose, "it was isolated and rare."

Mr Dakhlallah said giving money to the charities is the best outcome, since most people wouldn't have kept their receipts, making "identifying class members who have valid claims nearly impossible."

Mr Moughni argues that Mr Dakhlallah and his colleagues could have made greater attempts to find those who were harmed and, failing that, identified more relevant organisations, such as Dearborn's public schools. He said the clinic is several miles away from the restaurant and the museum has nothing to do with halal food.

Macdonald disagreed, calling the charities "appropriate recipients," but Mr Moughni said he's considering an appeal.

"We think it's wrong," he said. "It's unfair for the class members."

There are only two McDonald's in the United States that sell halal products and both are in Dearborn, which has one of the nation's largest Arab and Muslim communities. Overall, the Detroit area is home to about 150,000 Muslims of many ethnicities.
 

View the original article here

CSG call will push gas costs higher

GAS bills will rise as the state runs out of gas following Premier Barry O'Farrell's decision to back down on coal seam gas, the petroleum industry is warning.

With 95 per cent of the state's gas presently coming from interstate or offshore compared with Queensland, where all the gas is locally sourced, the industry is warning the government its decision to impose buffer zones around where coal seam gas mining could occur could cost householders in their bills and lead to major supply problems.

The Australian Petroleum Production and Exploration Association (APPEA) has written to Energy Minister Chris Hartcher issuing the warning and saying prices will be driven up.

The industry is also complaining that after the industry had accepted a policy from Mr Hartcher, Premier Barry O'Farrell came in and steamrolled them at the last minute with a cabinet decision which meant 2km exclusion zones were put around households and critical industry zones including horse studs without industry consultation.

The industry had expected the moves to introduce tougher environmental controls and a review by the Chief Scientist but were not warned about the exclusion zones.

But research conducted by APPEA by the Liberal Party pollster Mark Textor indicates the change in feeling about coal seam gas in NSW which fired the Premier's decision.

The research shows attitudes in favour of coal seam gas have fallen away drastically over the past two years. In February 2011 in NSW 44 per cent of people supported coal seam gas and 42 per cent opposed; now 58 per cent oppose and 27 per cent support it.

View the original article here