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NADA Study Tour

Posted on by Ashleigh Sykes

NADA Study Tour The AADA Study Tour will be attending the 2020 NADA Show in Las Vegas in February. The NADA Show is the retail automotive industry’s largest gathering, showcasing the latest automotive and dealership products and technologies, and giving attendees the chance to rub shoulders with global automotive leaders.

The NADA Show features workshop sessions feature the latest insights, analysis and strategies for the future of automotive retailing, and the most up-to-date information on data management, EVs, and OEM relations, directly from NADA’s own Academy instructors and industry experts.

Participants will also be treated to a behind the scenes look at the operations of one of the world’s leading dealership groups.

There is so much to be gained from being part of the AADA Study Tour to NADA. Register your interest now and join us in Las Vegas in February.

REGISTER HERE

AADA Magazine – July 2019

Posted on by Ashleigh Sykes

The quarterly updated and July edition of the Automotive Dealer Magazine is now available and can be accessed online.

This edition is packed with news and features providing crucial information and opinions on key issues impacting Dealer organisations and profitability.

Download your copy today.

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AADA Convention – Lunch with a legend

Posted on by Ashleigh Sykes

In 2019, AADA welcomes the most senior Australian official to ever attend an AADA National Dealer Convention. Recently-retired Governor-General Sir Peter Cosgrove, AK, MC, will be our guest speaker at the Carsales Luncheon.

In a military career spanning four decades, Sir Peter earned medals including the Military Cross, National Medal, Centenary Medal, Member of the Order of Australia, and Companion of the Order of Australia.

Named Australian of the Year in 2001, he has also been honoured by New Zealand, Tonga, and Timor-Leste. He was named as Australia’s Governor-General in January 2014, and was created a Knight of the Order of Australia on 28 March 2014, the same day he was sworn in as Governor-General.

Sir Peter is one of the greatest living Australians. Universally respected and admired for his leadership and humanity, he will speak about his work and his country in an address that is sure to be wide-ranging, informative, educational and engrossing. Don’t miss this national legend.

 

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CONVENTION WEBSITE

AADA Quarterly Activity Report – April to June 2019

Posted on by Ashleigh Sykes

Between April and June 2019, the AADA Secretariat attended 273 meetings with politicians, members and industry stakeholders, resulting in 65 more industry meetings than quarter 1 of 2019. The AADA published 11 media releases and earned 118 media mentions. During quarter 2 there was a Federal Election with saw the AADA website views more than triple and social media posts almost double.

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VFACTs Update – May 2019

Posted on by Ashleigh Sykes

The AADA has assessed VFACTs for May YTD data for the first half of the calendar year. There has been a 8.1 per cent decrease for the month compared to May last year. A list of the top 10 volume brands ranked by +/- per cent to May 2018 can be found below.

May YTD 2019 Top Vol Brands
Ranked by per cent Improvement vs May 2018
 
  May   +/- Vol. & %
Total Market 2019 2018   VOL. %
Mitsubishi 35,136 33,639   1,497 4.5%
Kia 24,864 24,281   583 2.4%
Mazda 44,565 46,875   -2,310 -4.9%
Toyota 83,573 88,683   -5,110 -5.8%
Ford 26,850 28,951   -2,101 -7.3%
Hyundai 34,940 39,507   -4,567 -11.6%
Volkswagen 20,391 23,135   -2,744 -11.9%
Nissan 19,836 23,123   -3,287 -14.2%
Honda 18,569 22,288   -3,719 -16.7%
Total 436,649 475,222   -38,573 -8.1%

BDO – Automotive Tax Planning Kit 2019

Posted on by Ashleigh Sykes

With the end of the financial year upon us, BDO’s Automotive team have prepared a checklist of key tax planning initiatives for you and your dealership to consider.

BDO’S 2019 Automotive Tax Planning report covers a range of traditional motor industry tax considerations such as vehicle valuations, as well as broader tax matters such as franking credits, superannuation and depreciation deductions.

This update may also prompt you to think about your dealership’s company tax rate, particularly for entities that fit the base rate entity definition (aggregated annual turnover of less than $50 million) and are subject to a company tax rate of 27.5% for the 2019 financial year.

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Statement from AADA Chair – New CEO

Posted on by Ashleigh Sykes

The peak body representing franchised new car Dealers is pleased to announce the appointment of James Voortman as the Australian Automotive Dealer Association’s new Chief Executive Officer, commencing his responsibilities on 1 July 2019.

The AADA Board is thrilled that James has taken up this key position, and is looking forward to working with him to further the interests of franchised new car Dealers across Australia.

James was the outstanding candidate of those who expressed interest in the position.

We are pleased that he has accepted the role. Given his role as our Director of Policy, we expect a strong continuity across both policy and advocacy on behalf of our members. James also brings experience from working with other associations in the automotive sector and most recently as an advisor to a federal minister.

I would also like to aknowledge the ongoing role of AADA Chief Operating Officer Brian Savage who provides significant industry experience, having worked in dealerships, OEMs and automotive industry associations.

Brian was appointed to this role earlier in the year and will play an important role in the AADA secretariat with a strong focus on working with our most important resource, our members.

The board and I would like to sincerely thank outgoing CEO David Blackhall for his hard work and dedication over the last three years. David provided invaluable leadership and is largely responsible for the significant gains the AADA has made in recent years.

Every new car Dealer in Australia owes David a debt of gratitude for the focus, commitment and in many cases the resolution he has brought to issues in a time of extreme disruption. Whilst he is stepping down from his current role of CEO at the end of this month he has agreed to continue with us in a consulting role essentially to complete our work in making a mandatory code for our industry a reality.

Terry Keating
AADA Chair

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The New Morrison Ministry

Posted on by Ashleigh Sykes

The Prime Minister has made a number of changes to the Ministry that he took to the recent election, but overall the frontbench resembles one of consistency and continuity. While the new Administrative Arrangements Order is out, it is still unclear how the various responsibilities will be split between principal ministers and their assistant minister. The portfolios of most direct influence on areas of AADA interest include the following:

The Deputy Prime Minister Michael McCormack retains the Infrastructure, Transport and Regional Development portfolio. As such he will continue carriage of the implementation of the Road Vehicle Standards Act, although this is likely to be the operational responsibility of Andrew Gee as Assistant Minister to the Deputy Prime Minister.

Karen Andrews remains as Minister for Industry Science and Technology, with the ongoing responsibility to develop a mandatory Automotive Industry Code.

Simon Birmingham, as Minister for Trade, Tourism and Investment will be instrumental in the negotiations surrounding a potential free trade agreement with the European Union. If concluded, this agreement is expected to signal the end of Vehicle Import Tariffs and may also result in the abolishing of the LCT, a revenue measure that is widely seen as a non-tariff barrier to trade.

Michael Sukkar returns to the Ministry as Assistant Treasurer. The AADA has had a very successful relationship with Minister Sukkar in the past, and we look forward to working with him on issues relating to mandatory sharing of Service and Repair information.

Jane Hume has been appointed as the Assistant Minister for Superannuation, Financial Services and Financial Technology. As part of her Financial Services responsibility she is likely to be responsible for the implementation of the recommendations of the Financial Services Royal Commission, including the abolition of the Point of Sale Exemption.

Angus Taylor returns as Minister for Energy, with the added responsibility for emissions reduction. We have worked closely with Minister Taylor in the past and look forward to doing so again throughout this Parliament, particularly on issues relating to vehicle emission and electric vehicles.

Michaelia Cash has been allocated the enlarged portfolio of Employment, Skills, Small and Family Business. We look forward to working with her and her office on the outcomes of the recent parliamentary inquiry into franchising.

The Shadow Ministry led by newly appointed Opposition Leader Anthony Albanese is yet to be revealed. Nevertheless, there are already indications of significant changes to the economic team within the Opposition ranks.

MINISTRY LIST 29 MAY 2019
NEW ADMINISTRATIVE ARRANGEMENTS ORDER

AADA / Cox Automotive Dealer Sentiment Index Survey Q1 2019

Posted on by Ashleigh Sykes

The results of the second AADA and Cox Automotive Dealer Sentiment Index survey are in with Dealers reporting that market conditions remain challenging. The latest survey conducted from 14 March to 14 April 2019, is based on the responses of 115 Dealers.

Given the flow on effect of recent regulatory reforms and tightening of the credit market, it is perhaps not surprising that the outlook held by Dealers is less optimistic than was evidenced in the previous survey, conducted in August 2018.

Dealers report that their three main areas of concern remain consumer confidence, market conditions and margin compression. On a more positive note, new vehicle inventory is strong, and Dealers expect to see some improvements in the market over the next six months.

Despite the depressed outlook, it is encouraging to hear comments from Dealers more recently that with the election out of the way, they are experiencing far more favourable trading conditions. This is consistent with reports coming in from the real estate market which is seeing an upturn in auction clearance rates in Melbourne and Sydney, while the CBA is experiencing a surge in home loan applications, following the Federal Election.

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Federal Election Policy Implications

Posted on by Ashleigh Sykes

The 2019 Federal Election has passed and in a result none of the national opinion polls predicted, Prime Minister Scott Morrison’s Coalition Government has won a majority victory. The result has implications for franchised new car Dealers on a number of policy fronts. Below is a brief summary on the implications for some of our key policy areas. Rest assured the AADA secretariat is working with our members and Government to achieve the best possible outcome on all of these issues.

On the Automotive Code the AADA has been calling for, there is little change to the way forward. The AADA worked hard to win bi-partisan support for this crucial policy and the current government has already started work in this area through the development of a Regulatory Impact Statement (RIS). We will be working hard to ensure that this work is finalised by the Minister for Industry Innovation and Science, Karen Andrews.

Another area which is largely unaffected by the election result is the inevitable regulation on the sharing of service and repair information. A draft regulation was close to being finalised before the election was called and the AADA expects that this will gain some momentum in this new term of government.

The changes being proposed to the Australian Consumer Law (ACL), and in particular a proposedLemon Law, are less likely to sail through the Consumer Affairs forum of state and territory ministers given the Coalition’s recent wins federally and in New South Wales. Regardless, the possibility of a Lemon Law cannot be ruled out especially as State Government’s may seek to legislate them independently of the Commonwealth.

There is little change to the Tax Regime for new vehicles following the election. There is an argument that the Coalition is more likely to conclude Free Trade Agreements with the EU and the UK, presenting the best opportunity for the removal of the Luxury Car Tax (LCT) and the Passenger Vehicle Import Tariff. The AADA will also be urging the Federal Government to use its influence to reign in State Governments which are implementing state-based LCTs.

In the finance and insurance space, the Coalition victory is undoubtedly better for the industry. While both Labor and the Coalition have said they will adopt the Financial Services Royal Commission’s recommendation to abolish the Point of Sale exemption, the Coalition committed to a thorough process which considers the impact on business whereas Labor said they would make the change immediately.

Finally, there was a clear contrast in policies on vehicle emissions. Labor committed to a CO2 standard of 105g/km and an electric vehicle target of 50 per cent of new car sales by 2030. The Coalition has no plans to introduce a CO2 standard and has said it will release an Electric Vehicle Strategy at some stage in 2020.