The Government last week released its response to the recommendations made by the Senate Inquiry report into regulation of the relationship between car Manufacturers and car Dealers. Most of the recommendations have been noted, supported, or supported in principle and the Government has committed to enact reforms. Most importantly, the Government in July already made amendments to the Franchising Code of Conduct which will benefit new car Dealers.
The Government has also committed to further work on arbitration (consultation process is underway) and work towards better processes for indemnification of Dealers. There are a number of other recommendations addressed to the ACCC and its investigation to General Motors, but the Government has decided to allow the ACCC to exercise its independence on those matters.