The Senate Inquiry into the Regulation of the Relationship between car Manufacturers and car Dealers in Australia will hold public hearings today.
Australian Automotive Dealer Association (AADA) CEO, James Voortman, will appear and answer questions on behalf of Australia’s franchised new car Dealers. For a copy of the opening statement, click here.
“2020 has been a tumultuous year for automotive Dealers with the termination of all 185 Holden Dealers and between 30 and 40 Honda Dealers. Further changes are afoot in this industry and it is important that appropriate regulations in place to prevent exploitation of Dealers by the Manufacturers to which they are franchised,” said Mr Voortman.
“There are concerning trends developing around some Manufacturers rationalising networks and changing their distribution models, but not doing so transparently and not providing their Dealers with adequate compensation,” he said.
“Australia needs regulations similar to those which exist in the other industrialised countries to level the playing field between Dealers and Manufacturers,” he said.
“The fact of the matter is that new car Dealers make significant investments and play an important role in an incredibly important industry, however, they are vulnerable to the decisions being made in board rooms in Tokyo, Stuttgart and Detroit,” Mr Voortman said.
The Senate Inquiry is scheduled to deliver its report on 10 December 2020.