25th March, 2022 ยท Media Release

Dealers Welcome Stronger Franchising

The peak body representing franchised new car Dealers has welcomed the Morrison Government’s announcement of increased penalties for breaches of the Franchising Code of Conduct.

“Stronger penalties in conjunction with recently introduced reforms to the Franchising Code of Conduct are good for small businesses and they are good for franchised new car Dealers,” said AADA CEO James Voortman.

“The penalties come after a series of franchising disputes between automotive Dealers and vehicle Manufacturers and they provide a greater deterrent for those franchisors which breach the Franchising Code of Conduct,” he said.

“These changes will bring a degree of balance to the relationships between new car Dealers and the Manufacturers to which they are franchised. The reforms are sensible and fair and will encourage all Manufacturers to rise to the standard already employed by ethically-minded car brands operating in Australia,” he said.

“Franchised new car Dealers are determined to work with Manufacturers in good faith in this time of great change in the automotive industry. The Government’s reforms are not aimed at stopping change, but rather ensuring it is conducted in a fair and reasonable manner,” said Mr Voortman.

“We would like to thank the Minister for Small and Family Business, Stuart Robert, for the work he and other members of the Government have undertaken in bringing about these landmark reforms in recent times,” he said.

Automotive Dealerships are important local businesses which employ Australians, invest in Australia and pay their tax in Australia. Dealers look forward to healthy commercial relationships with their Manufacturers, so we can continue to bring many benefits to Australian consumers and communities.


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