21st June, 2019 ยท Media Release

Dealers Welcome Franchising Task Force
but Automotive Code Should not be
Slowed Down

The peak body representing Australia’s franchised new car Dealers welcomes the establishment of the Franchising Task Force, but has urged the Government to finalise the work already underway on specific protections for automotive Dealers.

“We appreciate the establishment of the Task Force and look forward to working with them. However, this should not come at the cost of progress already achieved by the Government in developing specific protections for franchised new car Dealers,” said AADA CEO David Blackhall.

“This work has support across the automotive industry, as well as from the Australian Small Business and Family Enterprise Ombudsman, the Franchising Council of Australia and both sides of politics; it is well advanced and should not be held up,” said Mr Blackhall.

“There is clearly a power imbalance between off shore car Manufacturers and their Australian Dealers. The industry is currently facing significant head winds and the formation of an automotive code or specific protections should be a priority for the Government,” said Mr Blackhall.

“There are currently Manufacturers who are experimenting with alternative distribution models that would allow them to still utilise Dealers but operate outside of the traditional Franchising model and the protections offered by associated legislation,” said Mr Blackhall.

“Dealers have made significant capital investments at the request of franchise partners. These businesses deserve to have their investments and employees protected,” said Mr Blackhall.

The Task Force was established to deliver the Government response to the recommendations of the Fairness in Franchising report, which was handed down earlier this year by the Parliamentary Joint Committee on Corporations and Financial Services.

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