19th March, 2021 ยท Media Release

Dealers Welcome Senate’s Report
into Dealer and Manufacturer Relations

The peak body representing franchised new car Dealers has welcomed the bi-partisan report from the Senate Inquiry into the relationship between car Manufacturers and car Dealers in Australia.

The Inquiry ran over 12 months and shone a light onto serious issues within the industry following General Motors’ withdrawal of Holden from Australia. The Morrison Government has already announced a number of reforms which will address the concerns outlined in the report.

“This Inquiry has reaffirmed the existence of a power imbalance between car Manufacturers and the Dealers and made a number of recommendations to provide a degree of balance to these relationships,” said AADA CEO James Voortman.

“The Inquiry has made a number of sensible and fair recommendations which will set an appropriate standard for Manufacturers in their commercial relationships with Dealers,” Mr Voortman said.

“Australian car Dealers desperately want strong and respectful relationships with their Manufacturers, but they also need assurances that the massive investments they have been required to make will be protected,” he said.

“We sincerely hope that this Inquiry, its recommendations and the reforms announced by the Minister for Small and Family Business, Michaelia Cash, will foster better relations between Dealers and all Manufacturers,” Mr Voortman said.

“The Industry would like to commend both sides of Parliament for coming together to launch this Inquiry. It is so important that we have managed to reach a bi-partisan report and we would like to extend a special thanks the Committee Chair Senator Louise Pratt, as well as the work done by Senator Deborah O’Neill and Senator James McGrath,” he said.

“We would also like to thank the Morrison Government for listening to Dealers and their concerns and announcing landmark reforms last week,” he said.

“It is also important to thank all of the Dealers who participated in this process. Speaking out is never easy due to the potential for retribution. A number of Dealers appeared publicly, delivering powerful and heart felt accounts. Dozens more lodged confidential submissions,” Mr Voortman said.

“The industry will continue to work together with Minister Cash as she implements the reforms already announced. In particular, it is crucial that the mandatory principles are implemented as soon as possible, in line with the Senate Inquiry’s recommendation of 1 July 2021,” he said.

“More than anything these reforms will empower Australian Dealers to continue employing Australians, investing in Australia, supporting Australian communities and paying their taxes in Australia,” he said.

Download Media Release