15th June, 2022 · News

Memorandum of Understanding –

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The AADA, FCAI and MTAA have reached a Memorandum of Understanding to encourage our respective members to adopt better dispute resolution practices and to work together more closely on areas of mutual interest.

The agreement comes after a number of disputes in recent years when OEMs have left the Australian market, changed their business model mid-agreement or rationalised their Dealer network. The critical element of the of the MoU is the arbitration provision which will help the parties resolve certain disputes and get on with business efficiently and with minimal disruption. The three associations are being assisted by the Australian Small and Family Business and Enterprise Ombudsman, which has significant expertise in the field of dispute resolution.

Importantly, this MoU will rely on the OEMs and Dealer Councils to include these provisions in their Dealer Agreements. In coming weeks the AADA will engage with Dealer Council chairs to discuss the operationalisation of the MoU.