14th August, 2019 ยท Media Release

New Car Dealers Welcome Reforms To
Automotive Franchising

The peak body representing franchised new car Dealers has welcomed the Morrison Government’s commitment today to make Australia’s new car retailing industry fairer for Dealers and consumers.

“We very much welcome the Government’s commitment to level the playing field between Australian new car Dealers and powerful offshore Manufacturers,” AADA CEO, James Voortman said.

“The existence of a power imbalance has been clearly demonstrated through various inquiries and reviews and today’s announcement that there will be reforms to automotive franchising arrangements is a significant step in the right direction,” said Mr Voortman.

“These reforms will address end-of-term and capital expenditure arrangements, which are key issues that have been raised regularly by our members. We will also be urging the Government to address issues of tenure and consumer law issues,” he said.

“The AADA will be working closely with Ministers Andrews and Cash, the Department of Industry, Innovation, and Science and other industry participants to make sure that the reforms are implemented,” he said.

“The AADA has worked tirelessly to develop broad support for industry-specific protections for franchised new car Dealers and the Minister’s announcement today represents significant progress,” he said.

“Reform in the Automotive retailing sector enjoys the support of the Government, the Opposition, the Small Business and Family Enterprise Ombudsman, the Franchising Council of Australia and most bodies in the Automotive sector,” he said.

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