14th December, 2020 · bulletin

Government Releases Automotive
Principles

< 1 minute to read

On Friday, the Government released a set of Automotive Principles to address issues between new car Dealers and offshore Manufacturers. The AADA is very disappointed that the application of the principles will be voluntary and believes this won’t help protect Australia’s Dealers from being treated unfairly by their overseas franchisors. We have publicly expressed our frustration and disappointment with this Government decision in a media release issued immediately after the announcement by Ministers Andrews, Cash and Sukkar.

The AADA is also bemused that the Government would release the new principles without waiting for the Senate committee, which is currently investigating the relationship between car Manufacturers and car Dealers, to release their final report which is expected to be delivered by 18 March 2021.

Bizarrely, the Federal Chamber of Automotive Industries (FCAI) has come out against the voluntary principles, claiming that they are an overreaction by the Government. Clearly, those Dealers who until recently had a Holden sign on the front of their Dealerships would see things very differently.

The Labor Party reminded the Government that it had broken its commitment to introduce a stand-alone code in 2018.

The AADA will continue to make the case with the Government that supporting franchised new car Dealers and protecting them from the abuses of Manufacturers is more important than ever. Manufacturer behaviour which is opportunistic, exploitative and grossly unfair is already forcing Dealers to close their doors and people employed by Dealers and those businesses who support them, to lose their jobs.

The AMDC, AADA Board and AADA secretariat encourage all members to support us in making our message heard. We will be reaching out to members about this in a separate email in the coming days.

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